Town Council

General presentations

• SB040377 – Minutes of the Planning and Building Officer

  The minutes of the planning and building officer's meetings of 02.12.2009 and 09.12.2009 were presented. The A-section of the minutes is submitted to the town council for approval.

  The Hafnarfjörður Town Council approved the A-part of the minutes with 11 unanimous votes.

• 0905031 – Gunnarssund 9, zoning plan amendment

  Item 3 from the SBH minutes of 15 December. The proposal from Arki ehf, which puts forward a proposal for an amendment to the town centre detailed plan for the site, according to the drawing by Jon Nordsteien dated 06.05.2009, was taken up again. The application has been subject to local notification in accordance with the 2nd paragraph of Article 26 of the Planning and Building Act no. 73/1997. Objections were received. The detailed plan was approved by the Planning and Building Committee on 07.07.2009, but was annulled by the Planning and Building Appeals Board due to a procedural defect in its public consultation. The Planning and Building Board approved on 20 October 2009 to advertise the proposal in accordance with the first paragraph of Article 26 of the Planning and Building Act. The period for public consultation was from 22 October 2009 to 20 November 2009, and the deadline for comments was 7 December 2009. One comment was received. A public meeting regarding the draft detailed plan was held on 23 November 2009. The matter was considered at a processing meeting of the Planning and Building Officer on 09.12.2009, which referred it to the Planning and Building Committee. A summary by the Planning and Building Department of the comments received was presented, along with draft responses.$line$$line$Skipulags- og byggingarráð concurs with the report of the planning and building department, approves the detailed plan, and resolves that the matter be concluded in accordance with Article 26 of the Planning and Building Act No. 73/1997. The Planning and Building Committee makes the following recommendation to the City Council:$line$“The City Council of Hafnarfjörður approves an amendment to the 1981 detailed plan for the city centre regarding the plot at Gunnarssund 9, dated 16.10.2009, amended 9.12.2009, and that the matter be concluded in accordance with Article 26 of the Planning and Building Act No. 73/1997.“$line$

  Gísli Ó. Valdimarsson spoke. The Hafnarfjörður Town Council approved the proposed motion with nine unanimous votes.

• 0812029 – Operations Department, Budget 2009,

  Item 3 from the minutes of the BÆJH meeting of 17 December. The Executive Board's decision on the revised 2009 investment framework, as made at its meeting on 14 December, was presented. The Town Council refers the following proposal to the City Council: “The City Council of Hafnarfjörður approves the proposal for a revised investment framework for the year 2009.“

  The Hafnarfjörður Town Council approved the proposed motion with 7 votes in favour. 3 abstained.

• 0912113 – Gjáhella 1, transfer of plot

  Item 9 from the minutes of the Town Council meeting of 17 December. A proposal from Þ. Þorgrímssonar & Co., dated. 10 December 2009, in which a request is made to return the plot at Gjáhella 1. A report from the Department of Planning and Building is available. The plot fee is kr. 38,703,171, based on the building's value. 376,7.$line$ $line$Beyjarstjórn synjar ofangreindu afsali fyrir sitt leyti og leggur til við bæjarstjórn:$line$“The Hafnarfjörður Town Council rejects the submitted waiver in accordance with the opinion of the Department of Planning and Building and Article 8 of the regulations on the waiver of land charges „$line$

  The Hafnarfjörður Town Council approved the proposed motion with 10 unanimous votes.

• 0809080 – Minutes 2009, for presentation to the Town Council

  Minutes of the Family Council from 16 December.$line$Minutes of the Education Council from 14 December.$line$Minutes of the Planning and Building Council from 15 December.$line$a. Minutes of the Environment Committee/Local Agenda 21 from 9th December.$line$Minutes of the Town Council from 17th December.$line$a. Minutes of the Harbour Board from 9 December. $b. Minutes of the Health Committee of the Hafnarfjörður and Kópavogur area from 30 November. $c. Minutes of Strætó bs. from 27 November. Minutes of the Town Council from 21 December. Minutes of the Executive Board from 14 December. Minutes of the Harbour Board from 18 December.

  No one spoke up.

• 0911547 – Imposition of council tax 2010

  Item 2 from the minutes of the Municipal Council meeting of 21 December. The Finance Director attended the meeting and presented a proposal for the levying of municipal taxes for the year 2010.$line$The Board of the Hafnarfjörður Council of Elders also attended the meeting, and proposals for a discount on property tax and sewerage charges for pensioners and disabled persons were presented.$line$$line$Borough Council refers the proposals for the 2010 council tax rates to the Borough Council for its decision. $line$

  The Mayor of the Municipal Council proposed that item 6, The Imposition of Municipal Taxes for 2010, and item 7, The Municipal Budget for 2010 and Three-Year Plan for 2011-2013, be taken together for discussion. Hafnarfjörður Town Council approved the proposal by 11 unanimous votes.$line$ $line$Lúðvík Geirsson, Mayor, spoke and put forward an amendment at the second reading of the 2010 budget and the following proposal for the imposition of municipal taxes for the year 2010:$line$ $line$Levying of charges for the year 2010 $line$ $line$ $line$ Personal income tax 13.28% $line$ $line$ Property taxes: $line$ $line$Property Tax $line$Residential Property – calculated on the total property valuation 0.24% $line$Public Buildings – calculated at 1.32% of the total property valuation Commercial premises – other premises – calculated at 1.60% of the total property valuation Stables - Property tax on the full property valuation 0.50% $line$ $line$ Land lease $line$ Residential property – calculated on the land valuation 0.270% $line$ Public buildings – calculated on the plot valuation 1.000% $line$ Commercial premises – calculated on the plot valuation 1.000% $line$ Rent for plots other than those specified above 0.500% $line$ $line$ Water charge $line$ Calculated on the total property valuation of 0.10% $line$Additional water charge 18 kr. per m³ $line$ $line$ Sewerage charge $line$ Calculated on the total property valuation of 0,136% $line$ $line$Refuse collection and disposal charge $line$Calculated per dwelling unit 15.700 $line$Calculated per additional bin 7.800 $line$ $line$ Miscellaneous service charges $line$ Hlíðarþúfar Stables 4-horse stable 51,141 $line$ Hlíðarþúfar Stables 6-horse stable 78.163 $line$ Car Park at Tjarnavelli 2.850 $line$ $line$ $line$ $line$ $line$ $line$ Water charge and sewerage charge are levied on new properties when they are considered complete in accordance with the property valuation. $line$ $line$ The general due dates for property taxes in 2010 are ten, the 1st of each month from February to November, and the final due date is 30 days later. The due date for property taxes of less than 20,000 kr. is 1 February 2010. The due dates for property taxes levied on new properties during the year are the same as the number of general due dates remaining in the year when the levy is made.“ $line$$line$Haraldur Þór Ólason spoke. Gunnar Svavarsson made a point of order. Haraldur Þór Ólason responded to the point of order. Gunnar Svavarsson made a point of order a second time. Haraldur Þór Ólason responded to the point of order a second time. Gunnar Svavarsson made a brief remark. $line$$line$Guðrún Ágústa Guðmundsdóttir took the floor and put forward proposals during the second reading of the 2010 budget for Hafnarfjörður. Rósa Guðbjartsdóttir made a point of order. Guðrún Ágústa Guðmundsdóttir replied. Gunnar Svavarsson made a point of order in response to Guðrún Ágústu Guðmundsdóttir's previous speech. Guðrún Ágústa Guðmundsdóttir replied. Gunnar Svavarsson made a second intervention. Guðrún Ágústa Guðmundsdóttir replied to the second intervention. Gunnar Svavarsson made a brief remark. Rósa Guðbjartsdóttir made a second intervention in response to the previous speech by Guðrún Ágústa Guðmundsdóttir. $line$$line$Guðmundur Rúnar Árnason took the floor and put forward the following motion, also on behalf of Almars Grímsson and Guðrún Ágústa Guðmundsdóttir, on the abolition of property tax for pensioners and the rules thereon:$line$$line$“Proposal for the abolition of property tax for pensioners on old-age and disability pensions (75% disability) of their own home $line$ $line$ $line$ $line$ Individuals Gross income 2009 $line$ $line$100% exemption 2.450.000 $line$75% deduction 2.450.001 2.800.000 $line$50% deduction 2.800.001 3.100.000 $line$25 % deduction 3.100.001 3,350,000 $line$ $line$ Couple $line$ $line$100% cancellation 0 3,450.000 $line$75% cancellation 3.450.001 3.850.000 $line$50% cancellation 3.850.001 4.200.000 $line$25 % exemption 4.200.001 4.500.000 $line$ $line$The Town Council agrees that the exemption shall also include sewerage charges. $line$ $line$ Income reference is the 2009 annual income according to 2009 annual income according to the 2010 tax return, i.e. the total of the base for calculating income tax and council tax (box 2.7 on the tax return) and total capital gains (box 3.10 on the tax return). $line$ $line$ The rules for the implementation of the exemption from property tax and sewer charges are set out in the detailed regulations adopted by the municipal council from time to time.$line$$line$$line$$line$Regulations on the reduction or cancellation of property charges for low-income elderly and disabled pensioners and in the event of a spouse's death, in accordance with a decision by the municipal council.$line$$line$ $line$$line$ $line$$line$ A pensioner must have reached the age of 67 in the year prior to the cancellation or reduction of property tax and sewerage charges.$line$ $line$$line$Disabled persons must be 75% disabled to receive a waiver or reduction of property tax and sewerage charges. Those who are assessed as 75% disabled in the assessment year are entitled to a pro-rata reduction from the date the disability assessment took effect. $line$ $line$$line$Von the death of a spouse, property tax and sewerage charges are cancelled by 100% per cent, in the year following the spouse's death, regardless of income. The requirement for the waiver is the presentation of a death certificate. $line$ $line$$line$ The discount on charges is only granted for dwellings owned and occupied by pensioners, disabled persons, or surviving spouses. A discount is only granted on the fees for one property owned by the applicant.$line$ $line$$line$For applicants in an unmarried partnership, the same rules apply as for married couples. $line$ $line$$line$In the case of a married couple or cohabiting partners, it is sufficient for one spouse or partner to meet the requirement of being a pensioner on an old-age or disability pension. $line$ $line$$line$ If the marriage or cohabitation of the individuals mentioned in Article 6 is dissolved, the parties to the proceedings are entitled to one of the two following, from the time the divorce is registered or the cohabitation is terminated:$line$ $line$$line$ To enjoy an unchanged deduction for the assessment year, they must so request $line$ To be treated as individuals from that time, they must so request, provided they can satisfactorily demonstrate their separate earnings for the preceding year in accordance with Article 8. $line$ $line$$line$For the purposes of the income thresholds, reference is made to the income for the year 2009, i.e. the total of the base for the calculation of income tax and council tax (box 2.7 on the tax return) and capital income (box 3.10 on the tax return) $line$ $line$$line$These regulations are issued under the authority of the Act on Municipal Revenue Sources No. 4/1995, section 5, 4th paragraph.$line$$line$ $line$$line$Guðmundur Rúnar Árnason (sign)$line$$line$Almar Grímsson (sign)$line$$line$Guðrún Ágústa Guðmundsdóttir (sign) $line$ $line$$line$$line$Almar Grímsson then took the floor and put forward a proposal, on behalf of the Independence Party councillors, regarding the 2010 budget. Guðmundur Rúnar Árnason made a point of order. Almar Grímsson replied. Guðmundur Rúnar Árnason made a point of order a second time. Almar Grímsson replied a second time. Gunnar Svavarsson made a point of order regarding Almar Grímsson's previous speech. Guðrún Ágústa Guðmundsdóttir took the floor. Gunnar Svavarsson intervened. Guðrún Ágústa Guðmundsdóttir replied to the intervention. Gunnar Svavarsson intervened a second time. Guðrún Ágústa Guðmundsdóttir replied to the intervention a second time. Gunnar Svavarsson made a brief remark. Guðrún Ágústa Guðmundsdóttir made a brief remark. Rósa Guðbjartsdóttir took the floor and put forward the Conservative Party's amendment proposals to the 2010 budget for operations and planning. Lúðvík Geirsson took the floor. Haraldur Þór Ólason made a point of order. Lúðvík Geirsson replied to the point of order. Haraldur Þór Ólason made a point of order a second time. Gunnar Svavarsson took the floor. Haraldur Þór Ólason made a point of order. Gunnar Svavarsson replied to the point of order. Haraldur Þór Ólason made a second intervention. Gunnar Svavarsson replied to the second intervention. Rósa Guðbjartsdóttir made an intervention on Gunnar Svavarsson's previous speech. Gunnar Svavarsson replied to the intervention. Rósa Guðbjartsdóttir made a second intervention. Gunnar Svavarsson replied to the second objection. Rósa Guðbjartsdóttir made a brief remark. Lúðvík Geirsson took the floor. Haraldur Þór Ólason took the floor. Gunnar Svavarsson made a remark. Gísli Ó. Valdimarsson spoke. A proposal for the imposition of municipal taxes for the year 2010 was taken up for consideration. The Hafnarfjörður Town Council approved the proposed motion with 8 votes in favour and 3 abstentions.$line$$line$Proposed motion on the abolition of property tax for pensioners and disabled persons, together with the relevant regulations, was taken up for consideration. The proposal, together with the regulations, was approved by 11 unanimous votes.$line$$line$Almar Grímsson made the following statement:$line$$line$“Abolition of property tax$line$$line$ $line$$line$ The Town Councillors of the Independence Party support and approve the proposal before them regarding a discount for senior citizens and disabled people on property taxes. The concessionary terms have been relaxed, which is a step in the right direction and in line with the priorities of the Independence Party. “$line$$line$ Haraldur Þór Ólason (sign)$line$$line$ Rósa Guðbjartsdóttir (sign)$line$$line$ Almar Grímsson (sign)$line$$line$ $line$

• 0909032 – 2010 municipal budget and three-year plan 2011-2013

  The Hafnarfjörður Town Council approved, by 11 unanimous votes, a motion to refer the 2010 municipal budget and the 2011-2013 three-year plan to a second reading in the town council a week later, Tuesday, 22 December.

  Considered the mayor's proposed amendment at the second reading of the 2010 budget, which reads as follows:$line$$line$“Hafnarfjörður Town Council approves an increase in the Harbour Fund's income of 10 million due to a tariff increase. This increase has the effect of improving the result by the same amount, and cash reserves will increase accordingly. $line$$line$ $line$$line$ Furthermore, there will be a reduction of 13 million in policy area 08, following a reassessment of the costs of waste collection and disposal.$line$$line$ $line$$line$ due to changes in the income threshold following the abolition of property tax discounts- and sewer charges for low-income pensioners and disabled people will be provided for at an additional cost of 13 million krónur to budget category 02.$line$$line$ $line$$line$ Council-owned rental properties will be revalued to the 2009 property valuation, with the revaluation amounting to approximately 1.7 billion krónur. The revaluation increases the book value of the properties, but this is offset by being transferred to a special revaluation account within equity.“$line$$line$ $line$$line$ $line$$line$ The Hafnarfjörður Town Council approved the proposed motion with 7 votes. 4 abstained. $line$$line$ $line$$line$$line$$ The Hafnarfjörður Town Council approved the proposed motion with 7 votes. 4 sat out. $line$$line$ $line$$line$$line$$ Proposed motions from the Left-Green representatives regarding the 2010 budget, which read as follows, are considered:$line$$line$ $line$$line$$line$$line$“Full accessibility for disabled people to the environment and buildings of Hafnarfjörður. A special initiative in cooperation with the Employment Service.$line$$line$Beyond this, the City Council of Hafnarfjörður resolves to instruct the Executive Board, in cooperation with relevant professionals, to have the action plan for improving access for disabled people to the environment and buildings of Hafnarfjörður reviewed, whether owned by the municipality or leased from others, in accordance with “Access for All“, the “Manual on the Environment and Construction“, and the United Nations Convention on the Rights of Persons with Disabilities. $line$$line$ $line$$line$ The Action Plan will be sent for consultation to the Disability Federation of Iceland, Down's Syndrome Association, the Blind Association and Sjálfsbjörg. The Service and Development Manager will be tasked with implementing the action plan as a pilot project in collaboration with the Employment Service.$line$$line$ $line$$line$ Experts will be commissioned to evaluate the success of the project in improving accessibility for disabled people.“$line$$line$ $line$$line$Guðrún Ágústa Guðmundsdóttir A motion was put forward to refer the proposal to the Executive Board for discussion and review. The City Council approved the amendment with 8 votes in favour. 3 abstained.$line$$line$ $line$$line$“United Nations Convention on the Rights of Persons with Disabilities$line$$line$Borough Council of Hafnarfjörður resolves to instruct the Director of the Family Department to arrange a detailed presentation on the United Nations Convention on the Rights of Persons with Disabilities for the famthe relevant council and all municipal employees who are involved in or will be involved with matters concerning disabled people and the transfer of the portfolio to the municipality. The presentation will be organised by the Department of Disability Studies at the University of Iceland and will either take the form of a specific presentation for Hafnarfjörður or provide the aforementioned parties with the opportunity to attend a course held in collaboration with the University of Iceland's Continuing Education Department.“ $line$$line$ $line$$line$Guðrún Ágústa Guðmundsdóttir A motion was put forward to refer the proposal to the Family Council for discussion and review. The City Council approved the amendment with 11 unanimous votes.“Administration in accordance with international quality standards$line$$line$Borough Council of Hafnarfjörður agrees to begin adapting the management and operations of the Borough to the requirements of international quality standards. This will be done by the City of Hafnarfjörður applying for an audit against the ISO 9001 and 14001 standards to determine what the municipality needs to do to meet the quality requirements of the ISO system.$line$$line$ $line$$line$ Aim for certification of the operations of the Executive Department by the end of 2010. Other departments of the municipality will follow.“$line$$line$ $line$$line$Guðrún Ágústa Guðmundsdóttir A motion was put forward to refer the proposal to the Town Council and the Quality Manager for discussion and review. The town council approved the amendment with 11 unanimous votes. Subsidies on food costs in nurseries and primary schools. $line$$line$ to meet the needs of low-income families$line$$line$ The Hafnarfjörður Town Council agrees to launch a pilot project for the 2010–11 school year. 2011 in connection with the subsidisation of the cost of meals for children in Hafnarfjörður's nursery and primary schools, which involves the guardians of children in these schools completing income details on a dedicated form in the Hafnarfjörður resident portal. Families that fall below a certain income threshold will receive a waiver or a discount on fees for their children's school meals in nurseries and primary schools. The existing rules for waiving property taxes for the disabled and pensioners could serve as a model. $line$$line$ $line$$line$The Education and Social Services Department, in consultation with the Finance Director of Hafnarfjörður, is tasked with submitting proposals for further implementation to the Town Council by 1 March 2010.“$line$$line$ $line$$line$Guðrún Ágústa Guðmundsdóttir A motion was put forward to refer the proposal to the Education Committee for discussion and review. The town council approved the amendment with 11 unanimous votes.$line$$line$$line$$line$ A motion submitted by the representative of the Independence Party regarding the 2010 budget, which reads as follows, was taken up:$line$$line$ $line$$line$“Administration $line$$line$Bayernarfjörður Town Council agrees to make changes to the administrative system of the Borough of Hafnarfjörður to achieve simplification, streamlining and cost savings, and to increase efficiency and coordination between departments. To this end, the number of the borough's departments will be reduced by one through the merger of the Education and Family Departments. The first step in this streamlining will be to merge the Education and Family Councils. In addition, the Planning and Building Council will be given the responsibilities of the Environment Committee, and the Town Council will be given the responsibilities of the Culture and Tourism Committee.“$line$$line$ $line$$line$ Haraldur Þór Ólason (sign)$line$$line$ Rósa Guðbjartsdóttir (sign)$line$$line$Almar Grímsson (sign)$line$$line$ $line$$line$ A motion was put forward to refer the proposal to the Presidential Committee for discussion. The Hafnarfjörður Town Council approved the amendment with 11 unanimous votes.$line$$line$ $line$$line$ Takes up the proposed efficiency measures from the representatives of the Independence Party concerning operations and planning for the 2010 budget, which read as follows:Operations and Planning – Rationalisation“The Town Councillors of the Independence Party propose that work on Kaplakrika be postponed for the time being due to the town's difficult financial situation. Emphasis is placed on the fact that no new projects will be undertaken in the municipality unless funding is in place.“$line$$line$Haraldur Þór Ólason (sign)$line$$line$Rósa Guðbjartsdóttir (sign)$line$$line$Almar Grímsson (sign)$line$$line$The Social Democratic Alliance representatives put forward the following amendment:$line$$line$“The Social Democratic Party councillors propose that the part of the proposal concerning the pace of construction in Kaplakriki be referred for comment to FH, the contracted construction contractor, and the Hafnarfjörður Property Society.“ The Hafnarfjörður Town Council approved the amendment with 11 unanimous votes. Regarding the second point in the proposal from the Conservative Party representative, the town council approved the point with 11 unanimous votes. Lúðvík Geirsson submitted the following statement:$line$$line$“The town councillors of the Social Democratic Party point out that it is clearly stated in the financial statement that investments are to be based on the funding available at any given time, and this resolution is therefore fully in accordance with the proposed 2010 financial plan.“ $line$$line$ Ludvík Geirsson (sign)$line$$line$ $line$$line$It is proposed that detailed planning work for the Drafnar area be postponed, as well as planning investigations for the new harbour area, and also the competition and detailed planning work for the Dvergslóð site, but contracted planning work is planned in all cases. Furthermore, it is proposed that work on the town centre detailed plan, as well as contracted consultancy services for the town's outline plan, be delayed for Hamranes 2 and Ásland. Nearly ten million krónur would be saved in 2010 if these planning projects were delayed.“ $line$$line$Haraldur Þór Ólason (sign)$line$$line$Rósa Guðbjartsdóttir (sign)$line$$line$Almar Grímsson (sign)$line$$line$Borough Council of Hafnarfjörður rejected the proposal by 8 votes to 3. $line$$line$ $line$$line$ The budget for the main fund was put to the vote and approved with 7 votes. 4 abstained.$line$ $line$ The capital fund budget was put to the vote and approved with 7 votes. 4 abstained.$line$ $line$Fiscal year budget for Section A was put to the vote and approved with 7 votes. 4 abstained.$line$ $line$Fiscal plan for the Port of Hafnarfjörður was put to the vote and approved with 7 votes. 4 abstained.$line$ $line$ The budget for the Hafnarfjörður Sewerage Authority was approved with 7 votes. 4 abstained.$line$ $line$Fiscal year budget for the Hafnarfjörður Waterworks was approved with 7 votes. 4 abstained. The budget for the Housing Office was approved with 7 votes. 4 abstained. The budget for GN-eignar ehf. was approved with 7 votes. 4 abstained.$line$ $line$The consolidated budgets for Sections A and B were put to the vote and approved with 7 votes. 4 abstained.$line$ $line$ The Hafnarfjörður Town Council approved the proposed budget for the town treasury and its institutions for the year 2010, as presented on 15. December 2009, as amended on 22 December 2000, by 7 votes. 4 abstained. $line$ $line$ The City Council of Hafnarfjörður approved the proposed three-year plan for 2011-2013 with 7 votes. 4 abstained. $line$ $line$ The main results for parts A and B are as follows in thousands. kr.:$line$ $line$ $line$ 2010 $line$ $line$ Income ………………………………… 12,922,351 $line$ Expenses …………………………………. 11,529,782 $line$ Result before financial items …… 1,392,569 $line$ Financial items …………………… (981,927) $line$ Profit for the year …………………… 410,642 $line$ $line$ Assets at year-end ……………………. 38,365,779 $line$ Equity at year-end ………………… 1,361,774 $line$ Liabilities at year-end ………………….. 37,004,005 $line$ Investments……………………….. 825,000 $line$ Loan facility………………….. 4,030,000 $line$ $line$ $line$$line$ $line$ 2011 2012 2013 $line$ $line$ Income ………………………………… 13,001,676 13,383,699 13,680,683 $line$ Expenses …………………………………. 11,372,093 11,620,294 11,817,065 $line$ Result before finance items …… 1,629,583 1,763,405 1,863,618 $line$ Financial items …………………… (944,060) (902,813) (859,360) $line$ Profit for the year …………………… 685,523 860,592 1,004,258 $line$ $line$ Assets at year-end ……………………. 38,334,057 38,307,710 38,895,081 $line$ Equity at year-end ………………… 2,047,296 2,906,889 3,911,157 $line$ Liabilities at year-end ………………….. 36,286,761 35,400,821 34,983,924 $line$ Investments……………………….. 75.000 45.000 45.000 $line$ Borrowing facility………………….. 6,149,598 3,139,219 0 $line$$line$ $line$$line$ $line$$line$$line$Haraldur Þór Ólason, on behalf of the Independence Party, submitted the following motion:$line$$line$ $line$$line$ $line$$line$$line$Haraldur Þór Ólason,“The 2010 budget for the City of Hafnarfjörður is the last of the current term of office and it clearly illustrates the consequences of the Social Democratic Party's reckless financial policy over the last two terms of office. $line$$line$Since the collapse of the banks just over a year ago, the Social Democratic Party, despite having a solid majority, has not felt confident enough to implement austerity measures without including representatives from the opposition parties in its deliberations. $line$$line$The Coalition also tries to hide behind the banking crisis as the cause of the City of Hafnarfjörður's current financial problems. The truth, however, is that here in Hafnarfjörður the majority went too far with its projects and spending, constantly increasing debt accumulation to maintain an excessively high level of activity during periods of economic expansion. But when the going gets tough and difficult decisions have to be made, there is a pronounced decision-phobia within the Social Democrats. It should be noted that the town councillors of the Independence Party have proposed certain adjustments every year, but the Social Democratic Alliance's majority has always rejected such proposals without discussion. $line$$line$ However, they are now in a difficult position, and our town certainly needs everyone to pull together to sort out the running of Hafnarfjörður municipality. The City Councillors of the Independence Party are, as ever, ready to contribute and have therefore participated in the preparation of the 2010 budget. It is recalled that various aspects of it are not yet detailed, and it is therefore imperative that in the first few months of the new year, cost-cutting is pursued vigorously, particularly in the field of education, as this is one of the main conditions for the budget to be balanced.Key points to bear in mind when considering the 2010 budget are:- Since 2002, when the Social Democratic Party took over the running of the town, the town's debt has nearly tripled; It is a stark reality that the City of Hafnarfjörður's debt-to-income ratio is now 275%.- During the Social Democratic Party's time in government, the municipality's revenues have only been sufficient to cover its operating costs: Interest costs and new projects have been financed with new loans. $line$$line$- Hafnarfjörður has become one of the most indebted municipalities in the country and sent a letter to the municipal supervisory board last October requesting information and explanations on how the difficult financial situation of the municipality will be addressed.$line$$line$- It is reported that the town's debts and liabilities now amount to 37 billion króna, equivalent to a debt per resident of around 1.4 million króna, whereas the average debt for municipalities in the country is about 770,000. kr per resident.$line$$line$- In neighbouring municipalities such as Garðabær and Seltjarnarnes, the majority of the Independence Party has been stable for decades. The guiding principle there is fiscal restraint and debt repayment, which allows them to offer their residents lower council tax and other charges. It therefore matters who governs the municipalities and how.$line$$line$- The municipal administration and governance have expanded in recent years. The Independence Party has placed a strong emphasis on simplifying the town's administrative system, both for financial savings and to increase efficiency. $line$$line$- One of the worst mistakes made in the city's financial management was when the Social Democratic Party did not agree to the Independence Party's proposal in September 2007 to sell Hafnarfjörður's stake in Suðurnesja Hitaveita at that time. If the Social Democratic Party had not been afflicted with decision-phobia, the city's debt would be about 15 billion króna lower. Instead, the money that Orkuveitan paid out this December went towards paying a bank overdraft and also trade debts incurred during the year.$line$$line$ $line$$line$ Now a major reconstruction effort faces us in Hafnarfjörður, as the town is heavily indebted. We are therefore looking forward to the Social Democratic Party being replaced next spring, as a thorough clean-up of the town's operations and finances is urgently needed.“$line$$line$ $line$$line$Haraldur Þór Ólason (sign)$line$$line$Rósa Guðbjartsdóttir (sign)$line$$line$Almar Grímsson (sign)$line$$line$ $line$$line$Guðrún Ágústa Guðmundsdóttir, representative of the Left-Greens, submitted the following statement regarding the 2010 budget for the City of Hafnarfjörður:$line$$line$“Much in the 2010 budget for Hafnarfjörður is good, in line with the policies of our Left-Green party and has been worked on in cooperation with the minority. However, other parts of the budget are less well-developed, and therefore it is not possible to take a position in advance on whether, and in what way, the demands for efficiency gains will be met, or whether those gains will be acceptable from the perspective of the policies and ideology of the Left-Green Party. The financial position of Hafnarfjörður is extremely difficult. According to the 2010 budget, the municipality's equity position will be negative, debt repayments in 2010 will be 70% of the year's revenues, the main fund's estimated profit before financial items is only just over 16 million, and operating working capital is just over 1.1 billion. It is therefore clear that we are on the brink and have a great deal of work ahead of us. $line$$line$Secording social welfare and basic services is a key priority, according to the budget's explanatory memorandum. It can be agreed that with this budget, a step has been taken to protect the welfare of the town's residents. This has been done, for example, by ensuring that the basic amount of financial assistance is updated at the turn of the year in line with the consumer price index, and by reviewing the discount scheme on property tax and sewerage charges for pensioners and disability benefit recipients. However, it remains to be seen whether it will be possible to defend some aspects of the core service, as the efficiency savings of 300 million demanded of the primary school are largely unspecified. Various aspects of the administration of Hafnarfjörður municipality have reached their expiry date and are due for review. Our policy as the Left-Green Party is that nursery and primary school should be free of charge. But until there is a willingness to meet that goal, the current discount system for nursery and primary schools needs to be reviewed and adjusted to take into account a changing society, etc.d. by better means-testing the discounts and taking into account the unemployment of parents, rather than basing them on family structure.$line$$line$Even so, it is necessary to examine how the local authority intends to support the sporting activities of residents and the town's sports clubs. It must be considered which aspects of the sports clubs constitute a basic service, which aspects are considered important preventative work, and whether, and if so how, the council's involvement in their operations should be redefined. $line$$line$MThere is significant upheaval in the relationship between the state and local authorities. The Commission on the Distribution of Revenue between the State and Local Authorities is submitting its recommendations, and the transfer of various policy areas from the state to the local authorities is also underway. This needs to be approached slowly and with a clear-eyed view. The areas of policy in question are disability, the elderly, and healthcare. Some are even discussing that secondary schools should be transferred as well. Are the local authorities ready to take on these portfolios? What is their current situation? It is anticipated that Hafnarfjörður will take over the affairs of disabled people at the beginning of 2011. We, the Left-Greens in Hafnarfjörður, doubt that this is realistic and we place great emphasis on ensuring that we move slowly, that the transfer is well-managed and that the preparation is thorough. Among other things, it is important that politicians, the local authority's administration and staff familiarise themselves with new priorities in this area, which are primarily characterised by the need to ensure the human rights of disabled children, young people and adults, and to promote their equality with other citizens. Ensuring that disabled people have full access to the municipality's environment and buildings is just one aspect of this. With this budget, a motion is being presented for the third time, emphasising that accessibility must be improved. Hopefully, the proposal will be more successful on its third attempt than it has been to date. Much has been done to streamline the council's operations, and the staff deserve credit for their diligence in this work. However, it is the role and responsibility of the town council to make political decisions and set a course based on a formulated ideology about the kind of community we want to live in. It is clear that a great deal of work lies ahead to turn around the financial position of Hafnarfjörður. We, the Left-Green Party, are ready to work together with both the majority and minority of the Hafnarfjörður town council on this work, but we also emphasise the importance of defending social welfare and basic services for the town's residents.“$line$$line$ Guðrún Ágústa Guðmundsdóttir (sign)$line$$line$ Lúðvík Geirsson, on behalf of the Social Democratic and Progressive Party representatives, made the following reservation:$line$$line$$line$"The conclusions and priorities of the 2010 budget send a clear message that we will continue to protect the welfare and services for the town's residents. Despite a significant decline in municipal revenue alongside increased expenditure on family and welfare matters, the primary emphasis will remain on achieving cost savings and efficiencies in operations, administration and projects, without compromising core services and welfare matters. This is reflected, amongst other things, in the fact that: $line$$line$$line$ A positive operating result is targeted for both Section A and Section B in the year 2010. $line$ Operating cash flow will increase to nearly two billion, or about 15% of total revenues.$line$ Taxes and service charges will remain unchanged. $line$ Further optimisation will be achieved in both operations and investments. $line$ Increased funding will be allocated to financial assistance and welfare.The municipality's debt will decrease and its asset position will be strengthened. Contributions to welfare matters will increase, for example, through an increase in maintenance allowances. General service charges related to primary and nursery schools will remain unchanged until the new school year, and proposals have been introduced for an increased discount on property taxes for pensioners and disabled people. Operational efficiencies will be achieved, among other things, through increased cost control, new service tenders, targeted management of property operations, a reduction in wage costs and other measures, without compromising core services or the quality of general services for residents.It is forecast that council tax revenue will decrease by 4% year-on-year from the forecast figure, a real-terms decrease of just over 8% based on the inflation assumptions. The rate for property tax, water charges, sewerage charges and land rent will remain unchanged year-on-year, but the refuse collection charge will increase by 10%. A comprehensive nationwide revaluation of property valuations took place earlier this year, which resulted in a 3.61% year-on-year decrease in the valuation base for Hafnarfjörður municipality. This reduction leads to a corresponding decrease in revenue from property taxes, based on the 2009 rates. Wage changes for 2010 are expected to be negligible. During the current year, measures were implemented to reduce wage costs, which will have further effect in 2010. $line$$line$ The main results for 2010 are as follows:$line$$line$ The operating result of the A-section is expected to be a surplus of approximately 668 million króna. for the year 2010, but it will be positive by just over 158 m.kr. according to the forecast for 2009. The operating result after financial items is estimated to be positive at 247 m.kr. in 2010, whereas according to the 2009 forecast the operating result after financial items is negative at 1,552 m.kr. due to unfavourable exchange rate and price changes. $line$$line$ The operating result of A and B sections is estimated to be positive at 401 m.kr. for the year 2010, but according to the forecast for 2009 it is negative at kr. 1,948 m.kr.$line$$line$ Operating cash flow in Part A for the year 2009 is estimated at kr. 1,164 m.kr. and combined for Sectors A and B amounts to 1,850 m.kr. $line$$line$ All projects and investments have been scaled back in 2009, but the investment plan for 2010 will be revised once the situation regarding the financing of each project becomes clearer.$line$$line$ The 2010 budget will continue to ensure the welfare and equality of the town's residents. While exercising the utmost restraint in operations and safeguarding public services, progress will be pursued in all areas: $line$$line$There will be cooperation and consultation with residents, associations, organisations and businesses on the drive towards a new future. $line$Special emphasis will be placed on employment initiatives and retraining for young people.$line$There will be continued collaboration with the Innovation Centre and the Employment Authority on employment development projects.$line$Particular focus will be placed on innovation in employment, with an emphasis on the utilisation of water resources and data centres in the town's new industrial areas.All opportunities for job creation related to the strong operations and services of the Port of Hafnarfjörður will be pursued. The planning for new building sites will be reviewed, taking into account changed market needs and conditions.Construction of a new care home will begin this year, in cooperation with the government. Projects currently on the municipality's work programme will be completed, and decisions will be made on further new developments as funding allows.$line$Quality management in the council's property management will ensure even greater efficiency and savings for the council, and contracts will be sought for the further takeover of private-sector management contracts.$line$ $line$$line$ Through a variety of measures in the current year, significant operational efficiencies have been achieved in the municipality's operations, but by far the largest single efficiency achieved in recent months and which will have a significant positive impact on the municipality's expenditure for the foreseeable future is the takeover and purchase by the City of Hafnarfjörður of the so-called Nýsis properties,The most significant long-term impact on the municipality's expenditure is the takeover and acquisition by the City of Hafnarfjörður of the so-called Nýsis assets, The municipality's savings from this takeover of the private-public partnership agreements amount to well over one hundred million per year, with total savings of almost two billion over the remainder of the contracts. Furthermore, the municipality has now acquired these service buildings. $line$$line$Since last summer, a re-evaluation of assets has been carried out at the City of Hafnarfjörður's property fund. This assessment primarily covers the water supply, sewerage and stormwater systems, which have not been separately capitalised, as well as a revaluation of the council's rental properties, of which there are well over three hundred. The results of this revaluation will be available at the beginning of next year.It is clear that the assets of the City of Hafnarfjörður in fully developed plots in new industrial and residential areas are valued at over 10 billion króna. According to the budget results, it is clear that the municipality's asset position is very strong and well above its debts, and it will strengthen further once the results of the revaluation are available in the near future.The Independence Party in Hafnarfjörður should look in its own backyard when it comes to the discussion on debt issues and responsible economic management of the past decade, and where the primary responsibility for the nation's economic collapse lies. Recent statements by their party chairman on mistakes, fatigue with power and responsibility speak the clearest language on this matter. $line$$line$It has been a great strain on the staff and management of the municipality, with the difficult tasks we have had to tackle in recent months. It has also tested the internal strength of the administration and the cooperation of elected representatives. Everyone has played their part, and although there has not been complete unanimity on all the measures taken, good consultation and consensus have been achieved on all the key decisions made. It is important that such consensus exists, as does a willingness to cooperate. For that, we must be thankful, while also emphasising our hope that we may all continue to enjoy a successful and good collaboration on the important projects that await us in the new year.$line$$line$At the same time as the population of the nation's capital is declining and remaining static in most of our neighbouring municipalities, it continues to grow in Hafnarfjörður. That fact speaks for itself. Hafnarfjörður is a sought-after place to live, because here the principles of equality are upheld in welfare and services. Here, residents' safety and their right to social participation and services are guaranteed, regardless of economic status or other circumstances. Here, the principles of egalitarianism prevail and social justice is held in high regard. We have made good use of the time in recent years and built up rapidly and purposefully. This extensive development will strengthen the municipality's entire future position and give us the opportunity for further expansion on the large and valuable building plots under the municipality's control, which are fully prepared for development, whether for residential or commercial use. As new opportunities arise in employment and development in the coming months, we are well-positioned with our available land. $line$$line$ The pioneering spirit that has characterised the Hafnarfjörður community in recent years is our strength for the future. We are well prepared to advance towards new progress. A drive for the revival of the Icelandic economy and the welfare of the public. We have defended and will continue to defend the gains we have made in recent years. In this way, and only in this way, will we be best placed to advance once more."$line$$line$Lúðvík Geirsson (sign)$line$$line$Elly Erlingsdóttir (sign)$line$$line$Guðmundur Rúnar Árnason (sign)$line$$line$Margrét Gauja Magnúsdóttir (sign)$line$$line$Guðfinna Guðmundsdóttir (sign)$line$$line$Gunnar Svavarsson (sign)$line$$line$Gísli Ó. Valdimarsson (sign)$line$$line$ $line$$line$ $line$$line$ $line$$line$ $line$$line$ $line$$line$