Town Council

General presentations

• SB040377 – Minutes of the Planning and Building Officer

  Minutes from the planning and building officer's disposal meetings of 30.11.11 and 07.12.11 were presented. Item A was dealt with by the building officer in accordance with the Building Regulations Act no. 160/2010. Submitted.

• 0907115 – Keeping of livestock, adopted, second reading

  Item 5 from the minutes of the Municipal Council meeting of 1 December. The by-law on keeping domestic and pets was taken up again. The town's solicitor attended the meeting and presented the by-law. The Town Council refers the by-law to a first reading in the Town Board. Guðrún Ágústa Guðmundsdóttir took the floor. Sigríður Björk Jónsdóttir took the floor.$line$$line$Borough Council of Hafnarfjörður approved, by 11 unanimous votes, to refer the by-law on keeping domestic and companion animals to a second reading in the council.$line$

  The Hafnarfjörður Town Council unanimously approved the proposed by-law on the keeping of domestic and pets.

• 0712080 – Town Centre - Hraun, detailed plan

  Item 5 from the minutes of the SBH meeting of 13th December. To reconsider the letter from the Planning Authority dated 16th November 2011. $line$Skipulags- og byggingarráð approves the changes that are not considered so significant that the plan needs to be re-advertised.$line$Skipulags- og byggingarráð makes the following recommendation to the City Council of Hafnarfjörður: $line$“The City Council of Hafnarfjörður approves the detailed plan for Miðbæ Hraun, December 2011, with the changes made in accordance with the guidelines of the Planning Authority, pursuant to Article 25 of Act No. 73/1997. The changes are considered so minor that it is not necessary to re-advertise the plan.“

  Sigríður Björk Jónsdóttir took the floor. The City Council of Hafnarfjörður approved the proposed motion with 10 unanimous votes.

• Budget for Educational Services 2012

  Item 3 from the minutes of the Finance Committee of 15 December. A proposal from the Education Committee regarding regulations and subsidies for children with childminders, which the Committee referred to the Council at its meeting on 12 December. The Town Council refers the proposal for the fee schedule to the Town Board. Representatives of the Independence Party refer to the minutes of their representatives on the Education Council.

  Guðrún Ágústa Guðmundsdóttir took the floor. Then Kristinn Andersen and Eyjólfur Sæmundsson.Sigurlaug Anna Jóhannsdóttir, substitute town councillor, arrived at the meeting at 13:25. Sigurlaug Anna Jóhannsdóttir made a response to Eyjólfur Sæmundsson's previous speech. Eyjólfur Sæmundsson replied to the intervention. Kristinn Andersen intervened in response to Eyjólfur Sæmundsson's previous speech. Eyjólfur Sæmundsson replied to the intervention. Guðrún Ágústa Guðmundsdóttir spoke. Sigurlaug Anna Jóhannsdóttir intervened. Guðrún Ágústa Guðmundsdóttir replied to an intervention. Helga Ingólfsdóttir took the floor. Guðrún Ágústa Guðmundsdóttir made a point of order. The Hafnarfjörður Town Council approved the proposed motion on regulations and subsidies for children in the care of day-care providers by 6 votes to 5 abstentions.

• 1111379 – Einhella 6, Deed of Transfer

  Item 15 from the minutes of the Municipal Council meeting of 15 December. Pétur Þórarinsson, on behalf of Haghúsa ehf, requests to relinquish the plot Einhellu 6. A report from the planning and building officer and the finance manager was presented. The Town Board confirms the above-mentioned waiver for its part and recommends to the Town Council: “The Town Council of Hafnarfjörður approves the waiver of the plot Einhella 6.“

  The Hafnarfjörður Town Council approved the proposed motion by 11 unanimous votes.

• 1106059 – Disabled people, issues, ownership and rental of property

  Item 18 from the minutes of the Municipal Council meeting of 15 December. Taken up again. The Finance Director presented the agreements with the Equalisation Fund's Property Fund regarding premises for the takeover of matters concerning disabled people. The Town Council agrees to enter into a contract to purchase premises for the takeover of disability services based on the documents on file, and refers the matter to the Town Council for final approval of the 2012 budget. $line$$line$Furthermore, the Town Council authorises the Mayor to sign the necessary documents regarding the purchase, including loan agreements.$line$

  The Mayor proposed that the item be deferred to the agenda under item 9 – the 2012-2015 Budget for the municipal treasury and its enterprises. The Town Council approved the proposal with 11 unanimous votes.

• 1110068 – Klukkuvellir 20-26, plot application

  Item 20 from the minutes of the Municipal Council of 15th December. The application from Brynja Housing Fund of the Disabled Persons“ Association for the aforementioned plot was reconsidered. The planning and building officer is favourable to the application. $line$Beyarstjórn recommends to the Bæjarstjórn:$line$“The Bæjarstjórn approves the allocation of the plots at Klukkuvellir 20-26 to Brynja, the housing fund of the Disabled Persons' Association."$line$

  The Hafnarfjörður Town Council approved the proposed motion by 11 unanimous votes.

• 1101098 – Minutes 2011, for presentation to the town council.

  Minutes of the Planning and Building Committee from 13th December. Minutes of the Family Council from 14th December. Minutes of the Sports and Leisure Committee from 7th December. sl.$line$Minutes of the Environment and Operations Committee from 14 December sl.$line$Minutes of the Education Committee 12 December sl.$line$Minutes of the Town Council from 15 December sl.$line$a. Minutes of the Harbour Board from 13 December. b. Minutes of the Culture and Tourism Committee from 28 November and 7 December. c. Minutes of the Board of SORPU bs. from 28 November and 12 December.

  Sigurlaug Anna Jóhannsdóttir spoke under item 5 – From the Association of Primary School Teachers in Hf. – in the minutes of the Education Committee meeting of 12 December. Gunnar Axel Axelsson spoke under the same item. Sigurlaug Anna Jóhannsdóttir made a point of order. Gunnar Axel Axelsson replied to the intervention. Sigurlaug Anna Jóhannsdóttir intervened for a second time. Geir Jónsson intervened. Gunnar Axel Axelsson replied to the intervention. Geir Jónsson intervened for a second time. Gunnar Axel Axelsson replied to the objection for a second time. First Vice-Chair, Valdimar Svavarsson, took the chair. Guðrún Ágústa Guðmundsdóttir spoke on item 5 of the minutes of the Education Committee from 12 December. The Chair took the chair again. Kristinn Andersen made a point of order in response to the previous speech by Guðrún Ágústa Guðmundsdóttir. Guðrún Ágústa Guðmundsdóttir replied to the point of order. Kristinn Andersen made a second point of order. Guðrún Ágústa Guðmundsdóttir replied to the second point of order. Kristinn Andersen made a brief comment. Sigríður Björk Jónsdóttir spoke under item 6 – Bjarkavellir 3, amendment to the detailed plan – in the minutes of the Education Committee from 12 December. Sigurlaug Anna Jóhannsdóttir spoke again under item 5 in the minutes of the Education Committee from 12 December. Gunnar Axel Axelsson made a point of order. Sigurlaug Anna Jóhannsdóttir replied to the point of order. Eyjólfur Sæmundsson spoke on item 5 of the minutes of the Education Committee from 12 December. Sigurlaug Anna Jóhannsdóttir made a point of order. Eyjólfur Sæmundsson replied to the point of order. Sigurlaug Anna Jóhannsdóttir made a second point of order. Kristinn Andersen made a point of order regarding Eyjólfur Sæmundsson's previous speech. Eyjólfur Sæmundsson replied to the point of order. Kristinn Andersen made a point of order for a second time. Eyjólfur Sæmundsson replied to the point of order for a second time. Kristinn Andersen made a brief remark.

• Budget for the municipal fund and its enterprises 2012-2015, second reading

  Item 7 from the minutes of the Municipal Council meeting of 1 December. Drafts of the financial statements for the municipal fund and its enterprises for the years 2012-2015 were presented.The Education Committee's resolution on the education plan and proposed fee schedules was presented. Also presented was the Family Council's resolution on the family services plan and its fee schedules.The Town Council refers the draft financial plan for 2012-2015, together with the proposals for service charges, to the first reading in the Town Council. Guðmundur Rúnar Árnason, the Mayor, spoke.$line$$line$Rósa Guðbjartsdóttir left the meeting at 17:30.$line$$line$Valdimar Svavarsson spoke.$line$$line$Borough Council of Hafnarfjörður approved, by 10 unanimous votes, to refer the draft financial plan for 2012-2015, together with the proposals for service charges, to a second reading in the council.$line$

  Second reading in the town council: Gudmundur Rúnar Árnason, the mayor, took the floor and put forward proposals for the levying of property taxes for the year 2012, a proposal for the abolition of property tax in 2012 on the own home of pensioners on old-age and disability pensions, together with the relevant regulations. He also presented amendments to the tariffs for refuse collection, the Water Supply, Sewerage, parking charges, family services and education services, as well as an amendment to the 2012 budget. Furthermore, the mayor put forward a proposal regarding loan agreements with the Equalisation Fund Property Fund. Valdimar Svavarsson took the floor. Gunnar Axel Axelsson made a point of order. Valdimar Svavarsson replied to the point of order. Then Guðrún Ágústa Guðmundsdóttir took the floor. Then Gunnar Axel Axelsson and Sigurlaug Anna Jóhannsdóttir. $line$$line$Margrét Gauja Magnúsdóttir left the meeting at 16:45. Guðný Stefánsdóttir took her place. The First Vice-President, Valdimar Svavarsson, took the chair. Gunnar Axel Axelsson made a point of order regarding Sigurlaug Anna Jóhannsdóttir's previous speech. Eyjólfur Sæmundsson made a point of order regarding Sigurlaug Anna Jóhannsdóttir's previous speech. Sigurlaug Anna Jóhannsdóttir replied to the point of order. Eyjólfur Sæmundsson took the floor. Sigurlaug Anna Jóhannsdóttir made a point of order. Eyjólfur Sæmundsson replied to the point of order. Sigurlaug Anna Jóhannsdóttir made a point of order a second time. Eyjólfur Sæmundsson replied to the point of order a second time. Sigríður Björk Jónsdóttir took the floor. Then Kristinn Andersen. $line$$line$The Deputy Chair, Guðrún Ágústa Guðmundsdóttir, took the chair. Sigurlaug Anna Jóhannsdóttir left the meeting at 17:35. She was replaced by Rósa Guðbjartsdóttir, a town councillor. $line$$line$Geir Jónsson took the floor. The First Vice-Chair, Valdimar Svavarsson, resumed the chair. Gunnar Axel Axelsson made a point of order. Geir Jónsson replied to the intervention. Gunnar Axel Axelsson intervened for a second time. Geir Jónsson replied to the intervention for a second time. Gunnar Axel Axelsson made a brief comment. Geir Jónsson made a brief comment. Eyjólfur Sæmundsson made a point of order regarding Geir Jónsson's previous speech. Guðmundur Rúnar Árnason made a point of order regarding Geir Jónsson's previous speech. Guðrún Ágústa Guðmundsdóttir made a point of order regarding Geir Jónsson's previous speech to clear up a point of criticism. Eyjólfur Sæmundsson took the floor and put forward the following motion:$line$$line$“A drive to boost business and sell plots of land.$line$$line$$line$$line$$line$$line$$line$$line$$line$$line$$line$$line$$line$$line$$line$$line$$line$$line$$line$$line$$line$$line$$line$$line$$line$$line$$line$$line$$line$$line$$line$$line$$line$$line$$line$$line$$line$$line$$line$$line$$line$$line$$line$$line$$line$$line$$line$$line$$line$$line$$line$$line$$line$$line$$line$$line$$line$$line$$line$$line$$line$$line$line$$line$$line$Explanatory Note$line$$line$In a report from a working group of the town council on land matters, which was submitted last. autumn, it was proposed, among other things, that the Department of Environment and Operations be tasked with marketing plots for commercial activity. This proposal allocates funds to this project so that the marketing of the plots, and thereby the promotion of commercial activity in the town, can be carried out in a targeted manner. It is important for Hafnarfjörður to utilise the opportunities available for business development, as the town has one of the most prominent and largest industrial and business plots in the capital region, which are already ready for allocation.„ $line$$line$Eyjólfur Sæmundsson (sign)$line$Gunnar Axel Axelsson (sign)$line$Guðrún Ágústa Guðmundsdóttir (sign)$line$Guðmundur Rúnar Árnason (sign)$line$Margrét Gauja Magnúsdóttir (sign)$line$Sigríður Björk Jónsdóttir (sign)$line$$line$Rósa Guðbjartsdóttir made a point of order. Eyjólfur Sæmundsson responded to the objection. Rósa Guðbjartsdóttir made a second objection. Eyjólfur Sæmundsson responded to the second objection. Rósa Guðbjartsdóttir made a brief comment. Eyjólfur Sæmundsson made a brief comment. Helga Ingólfsdóttir made a point of order. Eyjólfur Sæmundsson replied to the point of order. Helga Ingólfsdóttir made a point of order a second time. Gunnar Axel Axelsson made a point of order regarding Eyjólfur Sæmundsson's previous speech. Kristinn Andersen made a point of order regarding Eyjólfur Sæmundsson's previous speech. Eyjólfur Sæmundsson replied to the point of order. Kristinn Andersen made a point of order a second time. Eyjólfur Sæmundsson replied to the point of order a second time. Kristinn Andersen made a brief observation. Guðmundur Rúnar Árnason, the mayor, took the floor. The second deputy chair, Guðrún Ágústa Guðmundsdóttir, took over the chair. Valdimar Svavarsson made a point of order. Guðmundur Rúnar Árnason responded to the point of order. Valdimar Svavarsson made a second intervention. Guðmundur Rúnar Árnason replied to the second intervention. Rósa Guðbjartsdóttir made an intervention regarding Guðmundur Rúnar Árnason's previous speech. Guðmundur Rúnar Árnason replied to the intervention. Geir Jónsson made a point of order regarding the previous speech by Guðmundur Rúnar Árnason. Eyjólfur Sæmundsson made a point of order regarding a previous speech by Guðmundur Rúnar Árnason. Helga Ingólfsdóttir took the floor. Margrét Gauja Magnúsdóttir, a town councillor, returned to the meeting at 19:15 and Guðný Stefánsdóttir left the meeting. The Chair resumed the chair. Guðrún Ágústa Guðmundsdóttir made a point of order. Rósa Guðbjartsdóttir spoke. The second vice-chair, Guðrún Ágústa Guðmundsdóttir, took the chair. Margrét Gauja Magnúsdóttir spoke. Then Sigríður Björk Jónsdóttir and Rósa Guðbjartsdóttir. $line$$line$Proceeded to a vote on the proposed resolution concerning the Initiative for Job Creation and the Sale of Plots.$line$$line$The Hafnarfjörður Town Council approved the proposed motion with 6 votes in favour. 5 abstained. A vote was held on the proposed motions regarding the imposition of property charges, a motion to abolish property tax for the year 2012 on the own home of pensioners on old-age and disability pensions, and the relevant regulations.$line$$line$Proposed recommendation on the imposition of property charges:$line$“The Hafnarfjörður Town Council resolves that the levied property charges for the year 2012 shall be as follows:$line$Property tax $line$Calculated on the total property valuation$line$Residential property 0,3.2%$line$ Public buildings 1.32%$line$ Commercial premises – other premises 1.65%$line$ Stables 0.6875%$line$ Summer houses 0.55%$line$Land lease$line$Calculated from land valuation$line$Residential buildings 0,42%$line$Public buildings 1.30%$line$Commercial premises 1,30%$line$Lease of land other than that specified above 0.55%$line$$line$There are ten general property tax due dates in the year 2012, The first instalment is due on 15 January 2012, and thereafter on the 1st of each month from March to November, with a final instalment due 30 days later. The due date for property taxes under 20,000 kr. is 1 February 2011. The due dates for property taxes, which are levied on new properties during the year, are the same as the number of general due dates remaining in the year when the assessment is made.“ $line$$line$Borough Council of Hafnarfjörður approved the proposed motion with 6 votes. 5 abstained.$line$$line$“Proposed motion on the cancellation of property tax for the year 2012 on the own home of pensioners on old-age and disability pensions (75% disability): The City Council of Hafnarfjörður approves the cancellation of property tax for 2012 according to the following criteria. Individuals Gross income 2011 $line$100% exemption 2,450,000$line$80% exemption 2,450,001 2,800,000$line$50% deduction 2,800,001 3,100,000$line$25 % deduction 3,100,001 3,350,000$line$ Couple $line$100% cancellation 0 3,450,000$line$80% cancellation 3,450,001 3.850.000$line$50% cancellation 3.850.001 4.200.000$line$25 % cancellation 4.200.001 4,500,000$line$$line$ Income reference is the 2011 annual income according to the 2011 tax return; the total of the base for calculating income tax and council tax (section 2.7 of the tax return) and total capital income (section 3.10 of the tax return.$line$The detailed rules for the implementation of the property tax waiver are set by the town council from time to time.“$line$$line$The Hafnarfjörður Town Council approved the proposed motion with 6 votes in favour. 5 abstained. $line$$line$Proposed motion:$line$“The Hafnarfjörður Town Council approves the following regulations for the reduction or cancellation of property tax for low-income elderly and disabled pensioners and in the event of a spouse's death.$line$1. A pensioner must have turned 67 in the year before the property tax is waived or reduced.$line$2. Disabled persons must be 75% disabled to receive a waiver or reduction of property tax. Those who are declared 75% disabled in the assessment year are entitled to a proportional reduction from the date the disability assessment took effect.$line$3. Upon the death of a spouse, the property tax is cancelled for 100% of the property for the following year, regardless of income. The requirement for cancellation is the presentation of a death certificate. $line$4. A discount is only granted on charges for dwellings owned and occupied by pensioners, disabled persons or surviving spouses. A discount is only granted on charges for one dwelling per person. $line$5. If the applicant is in an unmarried partnership, the same rules apply as for a married couple.$line$6. In the case of a married couple or cohabiting partners, it is sufficient for one partner to meet the requirement of being a pensioner on account of old age or disability.$line$7. If the marriage or cohabitation of the individuals referred to in Article 6 is dissolved, the parties to the case are entitled to one of the following from the date the divorce or separation is registered.$line$a. To enjoy an unchanged discount throughout the assessment year, should they so wish. $line$b. To be treated as separate individuals from that time onwards, should they so wish, provided they can satisfactorily demonstrate their separate income, see section 8. para. $line$8. For the purposes of the income thresholds, reference is made to the income for the year 2011, that is, the total of the base for the calculation of income tax and municipal tax (box 2.7. on the tax return) and capital income (box 3.10 on the tax return).$line$These regulations are issued under the authority of the Act on Municipal Revenue Sources No. 4/1995, section 5, 4th paragraph.“$line$$line$The Hafnarfjörður Town Council approved the proposed motion with 6 votes. 5 abstained. A vote was held on the proposed amendments to the tariffs for refuse collection, the Water Supply, the Sewerage Service, parking charges, family services and educational services.Proposed motion for refuse collection and manure lagoon cleaning: “The Town Council approves the attached fee schedule for refuse collection and the cleaning of manure lagoons in Hlíðarþúfur. The refuse collection fee will be kr. 19,300 per bin and the manure lagoon fee kr. 9,700 per stable in the stables. The proposed motion regarding the Hafnarfjörður Waterworks was approved by the City Council with 6 votes. 5 abstained. Proposed motion regarding the Hafnarfjörður Waterworks: “The Town Council approves the current tariff schedule of the Hafnarfjörður Waterworks. The water charge will be 0.112% of the total property valuation and the consumption charge, based on meter readings, per cubic metre of water will be kr. 18.“$line$$line$The Hafnarfjörður Town Council approved the proposed motion with 6 votes in favour. 5 abstained.Proposed motion regarding the Hafnarfjörður Sewerage System: “The Hafnarfjörður Town Council approves the current tariff for the Hafnarfjörður Sewerage System. The sewerage charge will be 0.185% of the total property valuation.“$line$$line$The City Council of Hafnarfjörður approved the proposed motion with 6 votes in favour. 5 abstained. Proposed motion regarding parking charges at Tjarnarvellir: The proposed motion was approved with 6 votes in favour. 5 abstained.“The parking fee for each space at Tjarnavellir will be kr. 3,325 for the year 2012 and will be collected with the year's property taxes.“The proposal was approved by the Hafnarfjörður Town Council with 6 votes in favour and 5 abstentions. Proposed proposal concerning family services: The Hafnarfjörður Town Council approved the proposal with 6 votes in favour and 5 abstentions.“The Hafnarfjörður Town Council approves the proposed motion regarding amendments to the fee schedule for family services concerning swimming pools, services for senior citizens and disabled people, all-day schools and play schemes.“$line$$line$The Hafnarfjörður Town Council approved the proposed motion with 6 votes. 5 abstained. Proposed motion on changes to the education service fee schedule: “The Hafnarfjörður Town Council approves that the nursery school fee schedule will be as follows: from 1 February 2012 from 1 August 2012$line$ Monthly fee, per hour of attendance per day 2,830 kr. 2,971 kr. Monthly fee for the first half hour of stay per day, beyond 8 hours 3,675 kr. 3,859 kr. Monthly fee for the first half hour of stay per day, beyond 8 hours 3,675 kr. 3,859 kr. Monthly fee for the morning snack 1,524 kr. $line$G monthly charge, for lunch Kr. 4,335 per month for an afternoon snack. Kr. 1,524 per month. Example: 8 hours“ stay per day for one month, including meals: Kr. 30,021. Kr. 31,153. Other charges will remain unchanged. The City Council of Hafnarfjörður approved the proposed proposal with 6 votes. 5 abstained.$line$$line$Proposed proposal on the charge for lunch in primary schools:$line$“The Hafnarfjörður Town Council approves that the charge for lunch in primary schools will be as follows: From 1 February 2012, 375 kr. per meal. from 1 August 2012 400 kr. per meal“ The Hafnarfjörður Town Council approved the proposed motion with 6 votes. 5 abstained. Proposed amendment to the 2012 budget of the City of Hafnarfjörður: Increased funding onThe following changes have been made to the 2012 budget: Increased funding for policy area 02 by 20.043 thousand kr. for internal leasing of properties to be purchased from the Stabilisation Fund's Property Fund in 2011. $line$$line$An increased appropriation for policy area 04 of 103,448 thousand kr. due to a correction in the internal rent and the schools“ use of sports facilities. $line$$line$Income from the use of sports halls 138,424 thousand kr. $line$Charges for the use of sports facilities ( 221,125) thousand kr.$line$Internal rent and rent ( 21,436) thousand kr.$line$Other costs - reduced 689 thousand kr. $line$$line$ Increased appropriation on policy area 05 by 4,687 thousand kr. due to a correction to internal rent. $line$$line$ A reduction in funding for category 06 of 119,642 thousand króna due to adjustments to internal rent and school use of sports facilities. $line$$line$ Revenue from school usage: 120,461 thousand kr. $line$ Internal rent ( 819) thous.kr$line$ $line$ A review of the institutions“ participation in the operation of sports facilities is underway, but the outcome is not yet available, and therefore the same assumptions as in previous years are being used. Changes to these items do not affect the council's overall financial position, as they are internal transactions within the main fund.$line$$line$ An increased budget allocation for policy area 13 by 13,000,000 kr. due to a special marketing initiative for the sale of industrial plots. $line$$line$Estate Fund:$line$$line$The income of the Estate Fund increases by 21,015 thousand krónur due to a change and correction to internal rent. Depreciation increases by almost 2 million króna and financial items increase by just over 11 million króna. $line$$line$The assets of the asset fund increase by 195 million króna due to the acquisition of property, and long-term liabilities increase by 204 million króna. $line$$line$S Group: $line$$line$ The effect of the changes is that the group's total result decreases by 28 million króna, assets increase by 191 million króna, liabilities increase by 219 million króna and operating working capital decreases by just over 15.7 million króna.“ The proposed motion on the 2012 budget was approved by the Hafnarfjörður Town Council with 6 votes. 5 abstained. Proposed motion for the handling of the 2012 budget: “The City Council of Hafnarfjörður approves the 2012 budget for the City Treasury of Hafnarfjörður and its institutions, as presented on 7 December 2011, with the subsequent amendments in accordance with the approved amendment proposal. The main results for Sections A and B are as follows in thousands of króna:$line$Income Statement: $line$ $line$ Revenues ……………………………………… 15,970,797 $line$ Expenses ……………………………………….. (12,940,163)$line$ Depreciation and amortisation…………………………………… (873,320)$line$ Finance costs…………………………… (2,028,648)$line$Result of operations ……………………. 128,666$line$ $line$ $line$Balance sheet: $line$ Assets……………………………………… 44,987,484$line$ Equity ………………………………….. 7,442,739$line$ Liabilities …………………………………… 37,544,745$line$ $line$ Cash flow: $line$ Operating cash flow…………………….. 1,852,514$line$ Investing activities……………………………. (190,000)$line$ New loans / loan facility……………… 0$line$ Repayments and loans paid …………. (1,383,614)“$line$$line$The Hafnarfjörður Town Council approved the proposed proposal with 6 votes. 5 abstained. $line$$line$The budget for the general fund for 2012 was put to the vote and approved with 6 votes, 5 abstained. The budget for the 2012 property fund was put to the vote and approved with 6 votes in favour, 5 abstentions. The budget for GN-eignar ehf. for the year 2012 was put to the vote and approved with 6 votes, 5 abstentions.$line$$line$The budget for Section A for the year 2012 was put to the vote and approved with 6 votes, 5 abstained.$line$$line$Fiscal year 2012 budget for Hafnarfjörður Harbour was put to the vote and approved with 6 votes, 5 abstained.$line$$line$Fiscal year 2012 budget for the Harbour of Hafnarfjörður was put to the vote and approved with 6 votes, 5 abstained.$line$$line$Fiscal budget of the Hafnarfjörður Waterworks for 2012 was put to the vote and approved with 6 votes, 5 abstained.$line$$line$The budget for the Housing Office for the year 2012 was put to the vote and approved with 6 votes, 5 abstained.$line$$line$The consolidated budgets for Parts A and B for 2012 were put to the vote and approved with 6 votes, 5 abstained.$line$$line$Submitted proposal for a loan agreement with the Stabilisation Fund Property Fund:$line$“The Hafnarfjörður Town Council hereby resolves to take out the following loans, totalling kr. 196,690,000, from the Property Fund of the Equalisation Fund, reg. no. 510211-0140, with a charge over properties that the municipality is purchasing from the same party:$line$Loan in the amount of kr. 16,900,000 with a charge over the property Bæjarhraun 19, plot number 207-5754;$line$Loan in the amount of kr. 21,990,000 with a charge over the property Bæjarhraun 2, plot number 207-4239;Loan amounting to kr. 59,400,000 with a charge on the property Blikaás 1, plot number 224-4735; Loan amounting to kr. 34,700,000 with a charge on the property Smárahvammur 3, plot number 207-9050; a loan in the amount of kr. 63,700,000 with a charge on the property Berjahlíð 2, plot number 223-9065.$line$$line$The loans are for 25 years and are in accordance with the terms of the loan agreement before the meeting. The aforementioned properties are pledged as security for the loan, which is being taken out to finance their purchase. $line$Furthermore, full and unlimited power of attorney is hereby granted to Guðmundur Rúnar Árnason, ID no. 010358-4779, Mayor, on behalf of the Municipality of Hafnarfjörður, to sign loan agreements with the Stabilisation Fund of the Property Fund, pursuant to the foregoing, as well as to receive, sign and issue, and deliver any and all documents, instructions and notices relating to this borrowing.“$line$$line$Borough Council of Hafnarfjörður approved the proposed motion with 11 unanimous votes.$line$$line$ A short recess was taken.$line$$line$ Valdimar Svavarsson spoke and, on behalf of the representatives of the Independence Party, submitted the following statement:$line$$line$“Taxes and fees have been increased to make ends meet$line$$line$The majority's financial position and financial management is now so poor that the fundamental principle of recent years, not to increase the fixed amount of property taxes year-on-year, has been broken. This time, both the base for property taxes and the rate are being increased, so that the property tax levy on residential property rises by 150 million year-on-year in krónur, or by almost 20,000 on average per flat in Hafnarfjörður. In addition, the sewerage charge increases from 0.161% to 0.185%, The charge for refuse collection and disposal increases from 17,000 kr. to 19,300 kr. Subsidies for meals in primary and nursery schools are reduced, and fees are being increased at most of the borough's institutions. $line$The plan assumes that operating working capital will be around 1900 million in 2012 and that investment will decrease year-on-year to just 190 million in 2012. Nevertheless, cash reserves are being eroded and, looking at recent years, the municipal treasury has never achieved the surplus and operating cash flow required for this plan to be realised. Operating cash flow was, for example, only 901 million in 2010. It is likely that further cost-cutting will be required if the majority party intends to stick to this plan, as experience over the past few years has shown that budgets have not been met. The majority, on the other hand, are trying to convince the town's residents that enough savings have been made and that excellent results have been achieved, for example, in education. We know that salaries have increased this year, but if we look at the department's other operating costs, they were estimated at 2,750 million in the 2011 budget, but according to the revised budget they are 3,003 million and according to the 2012 budget is 3,083 million. That is a difference of 330 million, which is not consistent with the majority's claim that economies have been made in the portfolio during the year just past. A portfolio that the prospective mayor of the majority, the Left Green councillor, has managed since the last election, without plans ever being met. ““Balanced operations – Increased surplus – Reduced debt“ are the slogans of the majority's plan. The operating balance is little more than an increase in charges to make ends meet, and in addition, cash reserves are being drawn down year-on-year to cover repayments, interest and investments. Furthermore, it is clear that the only thing that has saved the current year is increased income in the form of council tax, because if you disregard the revised forecast for 2011 and look only at the original forecast and compare it with the revised forecast, you can see that income increased by 1,070 million on the year, while expenditure was about 1,200 million higher; in addition, interest charges were also 800 million higher than forecast. It therefore seems that there is no indication that a balance is being achieved, and at any rate, profit appears not to be increasing in 2011. $line$$line$The arrears will cost us about 1000 million$line$$line$When the town's loan with Depla went into arrears this spring, other loans that the town owed Depla of 8,5 billion, and in a single day the refinancing problem grew from 4.3 billion to a problem of almost 13 billion that the town had to solve. The bank immediately called in loans that were due for repayment in early 2012 and, perhaps even worse, it called in favourable loans due in 2018, amounting to around 3 billion. The fact that these loans were called in has already cost us hundreds of millions in direct financialThe mere fact that all the loans were called in will cost us an additional 1 billion in interest costs, as the refinancing is at much higher rates. 1000 million corresponds to the running of 10 nurseries for a year.$line$$line$$line$An unfavourable refinancing agreement$line$$line$On 7. December, a majority of the Social Democratic and Green Party coalition approved a deal with the Depfa bank's wind-down board to extend loans and change their terms and conditions. The Independence Party members of the town council voted against the deal, a deal which the wags have nicknamed “HAFSAVE“. The reason the Independence Party did not approve it is not solely the fact that the agreement is shrouded in great secrecy and its main points have been kept from the town's residents, but that it is simply not a good deal and is, in fact, just a short-term solution for a municipality that had been backed into a corner. The mayor has been keen to say how unfortunate he finds it that the agreement is confidential, but at the same time has revealed its main points in several interviews. He has said that it is for four years, with interest payments and repayments made quarterly, at an acceptable interest rate and that plots are, among other things, mortgaged. But what more can be added to this and why is the agreement not a good one: $line$Firstly, the loans being extended by Depfa were unsecured. What does that mean in plain English? The bank has a charge on all plots and even other assets of the town until the loan is repaid in full, and will therefore not release the charge on individual plots unless payments are made towards the loans. Securing assets is primarily justifiable if it guarantees much better interest rates, a lighter repayment burden, greater flexibility in repayments and/or a longer repayment period.Secondly, the loans are only for four years and are therefore effectively a deferral until after the election, which in all likelihood means that we, the Independence Party, will be left to resolve this matter. It also states that it is hardly justifiable to provide further guarantees, as was done, given the short timeframe and the great uncertainty thereafter.$line$Thirdly, there are the interest rates. According to the 2012 budget, it is clear that the cost of capital is significant, so it is obvious that the interest rates are not lower than before. However, access to collateral is being granted, and it is generally a condition that interest rates are at least not higher when additional collateral or guarantees are provided. $line$In the fourth place, it is the debt service. The budget shows that the council's loan repayment burden is significantly heavy, and it is clear that repayments on the council's long-term loans will be around 1.38 billion next year, rising to about 1.6 billion in 2013. Furthermore, financing costs are projected to be around 2 billion next year, so it is clear that nothing can go wrong in the near future. Our conclusion is therefore that the agreement is not a good one, and we reiterate that the matter should have been considered as a whole. This agreement also has a fundamental impact on the town's finances for the coming years, and the signs of this are already visible in the 2012 budget, where the loan repayment burden is very high and nothing can go wrong. It is unacceptable that a three-year plan for 2013-2015 is not presented alongside this plan, as it is clear that the repayment and interest burden will be enormous in the coming years.$line$ $line$Ticking time bombs$line$$line$It causes us Independence Party members great concern that this plan effectively once again postpones addressing the problem that looms over the municipal treasury in the form of obligations that need to be paid, projects that the town needs to undertake, either to carry out necessary work or to address maintenance that has been put off for many years. $line$Environment- and the Operations Department compiled a list in the run-up to the budget of projects the town needs to undertake, either to save assets or to fulfil and complete work to which it has committed. According to this list, it is essential to carry out works worth approximately 1.6 billion in the near future to fulfil the above. This includes the finishing of roads, paths, green spaces and other landscaping in new housing estates. It also covers sports facilities where work has been halted and is now exposed to the elements, as well as other projects that need to be completed and started to provide services for the town's residents. It is clear that the 190 million allocated for projects in 2012 will not be enough, and so the problem will only grow, increasing the risk that the need for projects and their associated costs will rise. The Environment and Infrastructure Council estimated that the minimum amount needed for these projects in 2012 would be around 350 million, but the majority cut that figure by 160 million to make ends meet. To put the scale into perspective, the maintenance requirement, 1.6 billion, the entire operating cash flow the council expects to receive in 2011. Maintenance of the council's buildings, roads, and other assets has likewise been kept to an absolute minimum in recent years, and this remains unchanged year on year. The Department of Environment and Operations estimated that it would need around 45 million more for maintenance than the budget provides for. In total, therefore, over 205 million was cut from what the Environment and Construction Department considered essential in this area, in order to make ends meet. despite the tax take through property rates having been increased by almost 100 million year-on-year.$line$In addition to this, there is still an unpaid capital gains tax owed to the state, amounting to between 700 and 800 million. These are charges that individuals and companies cannot avoid paying. $line$$line$1500 million over forecasts for the last 2 years$line$$line$We, the Independence Party, have repeatedly criticised the fact that the town's budgets have not been met in recent years and that it is not possible to guaranteeor the credibility of the council with investors and lenders while this is the case. We have specifically pointed out that the primary thing the council's management can control is expenditure, as it can be more difficult to forecast income. In 2010 and the first half of 2011, the majority has overspent the budget by more than 1.5 billion. 1.5 billion that would have come in very handy in the refinancing negotiations the town has been in for the past year. $line$$line$In power in 21,5 of the last 26 years$line$$line$Samfylkingin has been in the majority more or less since 1986. That is a fact. The party has also been in the government since 2007 and did not seem to do much to avert the crash. It is therefore always so ridiculous when the Social Democratic Alliance blames the Independence Party for everything that has gone wrong in Hafnarfjörður. Especially when they say it is all the fault of private-sector contracts. The town's total lease liabilities today are around 1.78 billion, and this figure includes more than just private contracts. Furthermore, a few years ago the town bought out assets from private partnership contracts for 3 billion, bringing the total liabilities for this to around 4.7 billion. And let's not forget that these were and are contracts for school buildings, sports halls and nurseries that have been well maintained by their owners. It is therefore always laughable when it is claimed that these sums are the root of all the council's financial problems. Especially when the town's total debts and liabilities are around 37,325 million. Then the Social Democrats forget that in 2008 alone, spending amounted to around 7 billion, of which a single swimming pool cost about 3 billion. This line of argument speaks for itself and shows that the majority is still reluctant to acknowledge the problem.$line$Sjálfstæðismenn also tirelessly point out when the party's representatives on the town council put forward a proposal to sell the town's shares in HS-Energy worth around 7 billion and use the proceeds from the sale to pay off foreign debt. The Social Democratic Party did not approve this and thus missed an opportunity that would have meant the town's debts would be well over ten billion lower than they are today. $line$$line$EBoost the economy – utilise resources – harness the power$line$$line$The way out of the predicament the town is currently in is, first and foremost, to continue with operational efficiencies, encourage the business community and support it to the best of our ability. We also need to utilise the resources the town owns to generate income, and we must harness the potential of the individuals who live in the town. The Independence Party in the Hafnarfjörður town council has put forward proposals and initiated work on major issues of interest, such as the future of the Aluminium Smelter in Straumsvík, an initiative on employment matters, an assessment of opportunities for selling the town's plots of land, and the utilisation of geothermal energy in Krísuvík. These are all matters that will shape the town's future, generate income for us and hopefully help us to get through the difficult period that we, the people of Hafnarfjörður, have been stuck in for far too long. We will continue to work on progressive issues and matters that increase the prosperity and welfare of the people of Hafnarfjörður.“$line$Valdimar Svavarsson (sign), Rósa Guðbjartsdóttir (sign), Kristinn Andersen (sign),$line$Geir Jónsson (sign), Helga Ingólfsdóttir (sign).$line$$line$Gunnar Axel Axelsson spoke and, on behalf of the representatives of the Social Democratic Party and the Left-Green Party, submitted the following statement:$line$$line$“BALANCE IN OPERATIONS, INCREASED SURPLUS AND DEBT REDUCTION $line$$line$ The budget for the City of Hafnarfjörður for 2012 sends a strong message of success. It is based on success in financial management and on the successful implementation of the ambitious 2011 budget. The 2012 budget confirms that the City of Hafnarfjörður has achieved operational balance, without the need for further adjustments. At the same time, the municipality's foreign debt has been refinanced, and a clear plan is in place for debt repayment over the coming years. $line$By achieving operational balance and presenting a plan for debt reduction, the foundation has been laid for a new era of progress in Hafnarfjörður. The measures taken in 2011, upon which the 2012 plan is based, show that a strong recovery for the future has been achieved. A complete turnaround has occurred since the economic collapse, which had an even greater impact in Hafnarfjörður than in many other places, due to the rapid development of both infrastructure and services for residents in the preceding years. $line$The coalition of the Social Democratic Party and the Left-Green Party has placed a primary emphasis on honouring its social and financial commitments. Both have been fulfilled and, with the balance that has been achieved and the refinancing of foreign loans, a foundation has been laid for future growth. Through responsible financial management and good cooperation with both residents and the town's employees, this important goal has been achieved, but it is clear that prudence will need to be maintained in the coming years.$line$ The main key figures of the budget are as follows:$line$ The operating result for Parts A and B for the year 2012 is a positive of approximately kr. 128.6 million, and the operating result for Part A is kr. 13.9 million. $line$$line$ The group's total assets are estimated at approximately 44.9 billion króna at the end of 2012, liabilities and commitments are estimated at approximately 37.5 billion króna, and equity is 7.45 billion króna. $line$$line$ The value of plots of land amounting to 11 billion kr. is not recorded in the town's books, but their value offsets the town's long-term loans, thereby reducing the risk inherent in the debt. $line$$line$ Projected operating cash flow from Section A is approximately 1.4 billion kr., and the combined total for Sections A and B is 1.9 billion kr., which is just over 12% of total revenue. $line$$line$In recent years, implementation and investment have been scaled back, but the 2012 plan provides for 190 million króna for new projects. For prudential reasons, no land sales are budgeted for 2012, although marketing of the plots will be pursued vigorously. $line$$line$ In 2012, it is planned to repay loans amounting to 1.4 million kr.$line$$line$ The property tax rate for 2012 will be 14.48%. It is estimated that gross property tax revenue will amount to approximately 10.6 billion kr. but of that amount, 1.3 billion kr. will go to the Municipal Equalisation Fund, or about 1.72%, so that the municipality's net tax revenue is estimated at around 9,350 million kr. $line$ The basis for calculating property taxes for the year 2012 is based on the property valuation of assets, which was published in early summer 2011. $line$ Moderate increases and changes to the council's fee schedule are anticipated. In most cases, the increase will only reflect changes in the cost of living and rises in input costs and wages. $line$$line$ Newly concluded collective agreements mean a significant increase in costs for the City of Hafnarfjörður, and the year's wage budget is based on these agreements. $line$$line$In 2011, various measures were taken to reduce operating costs. These included, amongst other things, the merger of institutions, a change in working arrangements and shorter opening hours. Special thanks are due to the staff of Hafnarfjörður for their part in the success that has been achieved. Unfortunately, however, some redundancies have not been avoided in the course of these efficiency savings.$line$The 2012 budget does not anticipate the need for similar measures in the coming year. $line$The single biggest task for the management of Hafnarfjörður municipality in 2011 was the refinancing of foreign loans amounting to approximately 13 billion króna. This has taken a long time and required a great deal of work, not least due to the difficult conditions in the lending markets. Foreign lending markets have, for the most part, been closed to domestic parties in the wake of the collapse, and conditions in the domestic market have been extremely difficult. The refinancing agreement concluded with DEPFA/FMS in December 2011 marks a turning point for the operations and position of the City of Hafnarfjörður. Together, the 2012 budget and the refinancing agreement lay the foundation for the important balance now achieved in the operations of the municipal treasury. $line$With the balance that has been achieved, debt repayment and greatly increased profitability, a recovery is taking shape that lays the foundation for the city's secure future. However, it remains essential to maintain the strictest operational restraint, to further strengthen this success.$line$With this in mind, the resources that the City of Hafnarfjörður possesses, not to mention its staff and residents themselves, it is safe to look to the future with optimism. The future is bright for Hafnarfjörður, even though the storm has been in our faces for a while."$line$Guðrún Ágústa Guðmundsdóttir (sign), Margrét Gauja Magnúsdóttir (sign), Gunnar Axel Axelsson (sign),$line$Guðmundur Rúnar Árnason (sign), Eyjólfur Sæmundsson (sign), Sigríður Björk Jónsdóttir (sign).