Town Council

General presentations

• SB040377 – Minutes of the Planning and Building Officer

  Minutes from the planning and building officer's disposal meetings were presented. 14.11.12 and 21.11.12. Item A was dealt with by the building officer in accordance with the Mannvirkjalög nr. 160/2010. Presented.

• 1211316 – SHS properties, loans

  Item 7 from the minutes of the BÆJH meeting of 29 November. A proposal from the finance manager of the municipalities in the capital region regarding the loan arrangements for the fire service's property was presented. The Town Council refers the following proposals to the Borough Council: “The Borough Council of Hafnarfjörður approves the attached proposal for increased capital for the SHS Group.“

  Guðrún Ágústa Guðmundsdóttir, the mayor, took the floor. Kristinn Andersen rose to make a point of order. Guðrún Ágústa Guðmundsdóttir responded to the objection. The City Council of Hafnarfjörður approved the proposed motion with 6 votes in favour and 5 abstentions.

• 1210069 – Secondary schools, school boards, election

  The Mayor moved that the matter be deferred to the next Town Council meeting on 19 December. The Town Council approved the motion to defer by 11 unanimous votes.

• 1006187 – Councils and committees 2010-2014, elections

  The following proposal was put forward regarding an amendment to the composition of the Civil Defence Committee of Hafnarfjörður:$line$$line$“Main member:$line$$line$Torfi Karl Antonsson, Thrastarsás 16, in place of Jón Páll Hallgrímsson.$line$$line$Alternate member:$line$$line$Elínrós Erlingsdóttir, Blómvellir 25, in place of Guðrún Ágústu Guðmundsdóttir.$line$$line$No other proposals were received and the above were declared duly elected as main and substitute members of the Hafnarfjörður Civil Defence Committee.$line$$line$The following proposal was put forward regarding the appointment of a main member to the Civil Defence Committee:$line$$line$Guðrún Ágústa Guðmundsdóttir, Fjarðargata 17, in place of Guðmundur Rúnar Árnason.$line$$line$No other nominations were received, and Guðrún Ágústa is deemed duly elected to the Civil Defence Committee.

• 1201159 – Minutes of 2012, for presentation to the town council.

  Minutes of the Planning and Building Committee from 27 November.$line$Minutes of the Family Council from 22 and 28 November.$line$a.Minutes of the Sports and Leisure Committee from 19 November. Minutes of the Environment and Operations Committee from 28 November. Minutes of the Education Committee from 19 and 26 November. sl.$line$Minutes of the Town Council from 22nd and 29th November sl.$line$a. Minutes of the Harbour Board from 13 November. b. Minutes of the Culture and Tourism Committee from 13 November.

  Geir Jónsson spoke under item 3 – User-directed personal assistance, review of regulations and financial status of the pilot project – and item 8 – Work and activity – in the minutes of the Family Council meeting of 28 November. Guðrún Ágústa Guðmundsdóttir made a point of order. Geir Jónsson replied. Helga Ingólfsdóttir spoke on item 8 of the minutes of the Family Council meeting of 28 November. Guðrún Ágústa Guðmundsdóttir made a point of order. Helga Ingólfsdóttir replied to the interjection. Guðrún Ágústa Guðmundsdóttir made a second interjection. Sigríður Björk Jónsdóttir made an interjection regarding Helga Ingólfsdóttir's previous speech. Helga Ingólfsdóttir replied to the intervention. Rósa Guðbjartsdóttir spoke under item 6 – Byr, bankruptcy – in the minutes of the town council meeting of 29 November. Guðrún Ágústa Guðmundsdóttir made an intervention. Kristinn Andersen spoke under item 6 in the minutes of the town council meeting of 29 November.$line$$line$Rósa Guðbjartsdótti made the following statement on behalf of the Independence Party representatives:$line$$line$“The Town Councillors of the Independence Party express concern about the liabilities that now appear to be falling on the town's coffers due to Byr, totalling some 1.7 billion króna. A resolution from the town council of 12 May 2010 is recalled, in which it was requested that the Office of the Special Prosecutor review and investigate the aftermath of Byr's bankruptcy with regard to the interests of the Municipality of Hafnarfjörður. Nothing appears to have come of that request. It is therefore requested that the Office of the Special Prosecutor examines what led to the situation as it now stands and who bears responsibility for it.“ $line$$line$$line$Valdimar Svavarsson (sign), Rósa Guðbjartsdóttir (sign), Kristinn Andersen (sign), Geir Jónsson (sign), Helga Ingólfsdóttir (sign). A short break was taken.$line$$line$Guðrún Ágústa Guðmundsdóttir made the following statement on behalf of the representatives of the Social Democrats and the Left-wing Greens:$line$$line$“Representatives of the Left-Green Party and the Social Democratic Party share concerns about the liabilities that now appear set to fall on the municipal budget due to the Hafnarfjörður Pension Fund. An increased pension liability due to this is provided for in next year's budget. It should be emphasised that these liabilities originate from agreements between the Sparisjóður Hafnarfjarðar and the Municipality of Hafnarfjörður from 1973.$line$Furthermore, the majority party representatives share the concerns about the special prosecutor's sluggish response to the town's request for a special investigation into the aftermath of Byr's bankruptcy.“ $line$$line$Guðrún Ágústa Guðmundsdóttir (sign), Margrét Gauja Magnúsdóttir (sign), Hörður Þorsteinsson (sign),$line$Guðfinna Guðmundsdóttir (sign), Sigríður Björk Jónsdóttir (sign), Guðný Stefánsdóttir (sign).

• 1210658 – Fee schedule of the City of Hafnarfjörður 2013

  Item 10 from the minutes of the Municipal Council meeting of 29 November. Proposals for amendments to the 2013 fee schedules for the Municipality of Hafnarfjörður were presented.Proposals from the Family Council, the Education Council and the Environment and Operations Council for amended fee schedules were presented, as well as regulations on payments to day-care providers and private schools. $line$ The Town Board refers the following proposal to the Town Council:$line$$line$The Town Council of Hafnarfjörður approves the following pending tariffs for the year 2013:$line$Water supply tariff: the water charge will be 0.105% of the property valuation$line$Gully charge: the gully charge will be 0.195% of the property valuation$line$Green spaces and works charge: Costs for surface works and vegetable gardens$line$Garage parking charges at Tjarnarvellir$line$Garbage collection charges$line$Garbage incineration charges in Hlíðarþúfur$line$GLibrary tariff$line$Kindergarten tariff 1 January 2013$line$Kindergarten tariff 1. August 2013$line$Gjaldskrá Tónlistarskóli Hafnarfjarðar $line$Gjaldskrá fyrir félagslega heimaþjónustu$line$Gjaldskrá sumarnámskeið$line$Gjaldskrá heimsent fæði$line$G Catering tariff at Vinaskjól$line$ Price list for the social activities for the elderly$line$ School garden tariff$line$ After-school club tariff$line$ Hafnarfjörður swimming pool tariff$line$Gtariff for the services of the planning and building officer$line$$line$Furthermore, the Hafnarfjörður Town Council approves the following regulations on subsidies:$line$Regulations on payments to day-care providers 1. January 2013$line$Regulations on payments to day-care providers 1 August 2013$line$Regulations and conditions on payments to private preschools$line$Regulations on payments to private primary schools?$line$

  Guðrún Ágústa Guðmundsdóttir, the Mayor, took the floor and put forward the following amendment regarding the Parking Charges Schedule for Tjarnarvellir, which was originally approved by the Environment and Operations Committee on 28 November: „The operating and maintenance cost per space will be kr. 3,337.“$line$$line$Borough Council of Hafnarfjörður approved the proposed amendment with 6 votes. 5 abstained. The City Council of Hafnarfjörður approved by 6 votes the proposed motion of the City Board from 29 November regarding the fee schedules for 2013, as amended. 5 abstained.$line$$line$Beyjarstjórn Hafnarfjarðar approved by 6 votes the proposed motion of the town council from 29 November regarding the rules on subsidies for the year 2013. 5 abstained.

• 1210662 – Imposition of council tax 2013

  A proposal was put forward for the imposition of property taxes for the year 2013, together with regulations on an income-related discount on property tax for pensioners and disabled persons in Hafnarfjörður in 2013, and regulations on grants towards property tax for charitable organisations in 2013.

  Guðrún Ágústa Guðmundsdóttir, the mayor, took the floor. Then Geir Jónsson. Guðrún Ágústa Guðmundsdóttir interjected. Geir Jónsson replied to the interjection. Guðrún Ágústa Guðmundsdóttir made a second intervention. $line$$line$The Hafnarfjörður Town Council approved, by six votes, the following proposal on the imposition of property taxes for the year 2013. 5 abstained.$line$$line$“Levying of property tax and plot rent for the year 2013$line$$line$Property tax calculated on the total assessed value of houses and plots. $line$A- Tax class – residential buildings, stables and holiday homes – 0.30%$line$B- tax class – public buildings pursuant to Regulation 1160/2005 – 1.32%$line$C- tax class – commercial premises – 1.65%$line$ Land lease, calculated as a percentage of the land's property valuation: $line$A- Tax category – residential property, stables and holiday homes – 0.4%$line$B- Tax category – other property, pursuant to Art. 3 of Regulation 1160/2005 – 1.30%$line$C- tax class – commercial premises – 1.30%$line$$line$ The assessment is based on the property valuation of assets according to the Land Registry of Iceland as of 31 December 2012.$line$$line$There are ten general instalment dates for property taxes in 2013. The first instalment is due on 15 January 2013, followed by the 1st of each month from March to November, with a final deadline 30 days later. The due date for property taxes of less than 25,000 kr. is 1 February 2013. The due dates for property taxes levied on new properties during the year are the same as the number of general due dates remaining for the year when the levy is made. Property tax and land rent are levied under the authority of Act No. 4/1995, as amended.$line$$line$“Payers who pay their annual property taxes in full by 16 February 2013 will receive a 5% cash discount."$line$$line$The Hafnarfjörður Town Council approved by 6 votes the proposed regulations on an income-related discount on property tax for pensioners on old-age and disability pensions in Hafnarfjörður for 2013. 5 abstained.$line$$line$Borough Council of Hafnarfjörður approved, by 6 votes to 5 abstentions, the proposed regulations on income-related property tax discounts for pensioners in Hafnarfjörður for 2013. 5 abstained.

• 1212008 – Financial benchmarks, 10-year adjustment plan.

  A 10-year adjustment plan for financial benchmarks was submitted in accordance with the provisions of the Municipal Government Act 138/2011.

  Guðrún Ágústa Guðmundsdóttir, the mayor, took the floor.$line$$line$Guðfinna Guðmundsdóttir left the meeting at 16:40. Lúðvík Geirsson, the chief city councillor, took her place. $line$$line$The Hafnarfjörður Town Council approved, by 9 votes, to refer the 10-year adjustment plan for financial criteria to a later council meeting.

• Budget for the municipal fund and its enterprises 2013-2016 - second reading

  At its meeting on 31 October, the town council referred the 2013-2016 budget for the town fund and its enterprises to a second reading on 5 December.

  Guðrún Ágústa Guðmundsdóttir, the mayor, took the floor. $line$$line$Then Rósa Guðbjartsdóttir took the floor and, on behalf of the representatives of the Independence Party, put forward the following motion:$line$$line$“Rationalisation of the administration of Hafnarfjörður Municipality $line$The Town Council agrees to seek ways to rationalise the administration of Hafnarfjörður Municipality. The merger of the Planning and Building Department and the Environment and Operations Department will be considered for this purpose. Also, whether the newly created post of Director of the Administration Department, which was established last year and is currently vacant, can be abolished. Furthermore, the Sports and Leisure Committee will be abolished and the portfolio brought directly under the Family Council. $line$$line$Beyjarráði will be tasked with working on the matter.$line$$line$$line$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$1 It is essential that services for residents are prioritised, and it is therefore proposed that opportunities for efficiency savings are sought primarily within the administration, with an aim to reduce its overheads as much as possible.“$line$$line$Valdimar Svavarsson (sign), Rósa Guðbjartsdóttir (sign), Kristinn Andersen (sign),$line$Geir Jónsson (sign) and Helga Ingólfsdóttir (sign).$line$$line$Then Valdimar Svavarsson spoke and put forward the following motion on behalf of the Independence Party representatives:$line$$line$“Feasibility analysis of the allocation of plots at Völlum 7$line$Beyjarstjórn Hafnarfjarðar agrees to instruct the Finance Director to oversee the preparation of an analysis of the feasibility and cost of developing a new residential area at Völlum 7, where it is planned to allocate where plots are to be allocated in the coming years. $line$$line$The review shall be submitted no later than 1. March 2013$line$$line$ Rationale:$line$ The assessment shall, in the first instance, cover the expected revenue from the allocation of the plots and the investments that will need to be made in respect of statutory services in the neighbourhood, including completing the planning and promotion of the district, as well as the construction of roads, footpaths, a school, a nursery school and other services. Secondly, the estimated income tax revenue from the residents of the new district and the operation of statutory services in the district shall be assessed. Thirdly, it shall be estimated how the cost and development of the neighbourhood align with the agreements and commitments the municipality has already undertaken in other neighbourhoods, and the loan agreements the town has signed. The Planning and Building Committee has for some time been preparing the allocation of plots on Vellir 7, which is one of Hafnarfjörður's better development sites. It is clear that to provide the prospective residents of this area with the services they are entitled to, significant investment will be required in school buildings and nurseries, as well as road construction and more. It is very important that elected councillors have all the information about the commitments that come with the development of the neighbourhood before a decision is made to proceed with it.“ $line$$line$Valdimar Svavarsson (sign), Rósa Guðbjartsdóttir (sign), Kristinn Andersen (sign), Geir Jónsson (sign) and Helga Ingólfsdóttir (sign). Then Sigríður Björk Jónsdóttir took the floor. Helga Ingólfsdóttir rose to speak in reply.$line$$line$Kristinn Andersen rose to speak and put forward the following motion on behalf of the Independence Party representatives: $line$$line$“Discussions on a possible merger of the Port of Hafnarfjörður and Faxaflóahafnir $line$$line$Beyjarstjórn Hafnarfjarðar agrees to enter into discussions with the management of Faxaflóahafnir about the potential benefits of a merger of the Port of Hafnarfjörður and Faxaflóahports, or that cooperation between the ports will be significantly increased. The aim would be financial benefit in the form of economies of scale, increased employment at the Port of Hafnarfjörður and increased revenue for the municipality.$line$$line$Explanation:$line$Hafnarfjörður Harbour has been the mainstay of economic life for the people of Hafnarfjörður, but in recent years the number of visiting ships and fishing vessels has decreased. A major investment was undertaken when it was decided to expand the harbour area at Hvaleyrarviki. Plans called for increased activity in and around the Port of Hafnarfjörður, but unfortunately, those plans have not materialised, and a large part of the land reclamation is now used for storage space and premises with little activity. Furthermore, the utilisation of berths along the quays is far below expectations. Measures must be taken to streamline operations and increase the harbour's projects. The most direct course of action is therefore to enter into negotiations with Faxaflóahafnir regarding a merger or partnership. The synergies from a merger are likely to yield tens of millions of kroner in savings for both ports, and increased activity in the Port of Hafnarfjörður can be expected, which would lead to more job opportunities and greater revenue for Hafnarfjörður in the form of increased property taxes and other fees. A working group will be appointed to the matter, comprising one representative from each political party represented on the town council, the harbour master and the finance director of Hafnarfjörður. The working group will be authorised to engage a specialist for the project.“$line$$line$ Valdimar Svavarsson (sign), Rósa Guðbjartsdóttir (sign), Kristinn Andersen (sign), $line$ Geir Jónsson (sign) and Helga Ingólfsdóttir (sign).$line$$line$Hörður Þorsteinsson took the floor. Guðrún Ágústa Guðmundsdóttir responded. Rósa Guðbjartsdóttir responded to Hörður Þorsteinsson's previous speech. $line$$line$Helga Ingólfsdóttir took the floor and put forward the following motion on behalf of the Independence Party representatives: $line$$line$“Better use of school premises $line$As it is not feasible to undertake capital projects in the town in the coming months due to the council's debt position and the provisions of loan agreements with lenders, the Hafnarfjörður Town Council agrees to seek a waya to resolve the accommodation problem at Ásland and Hraunvallar schools by means other than extensions. $line$It is clear that the town has sufficient primary school accommodation, based on the figures presented on pupil numbers and the forecast for projected pupil numbers up to the year 2017. It is therefore proposed that premises in other schools in the town or nearby buildings be used for teaching on a temporary basis. $line$The Education Committee and the Hafnarfjörður Property Society shall be tasked with finding a suitable solution to the accommodation problem. $line$$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 Given the difficult financial position the town is in, it is important to undertake a comprehensive review of the actual need for additional school premises in the town. Solutions must be found that address both; which involve both minimal disruption for pupils and better use of the council's funds. The internal operations of the schools must be the priority when considering the pupils“ interests, and costly investments should be avoided where possible through better sharing of the council's school facilities. $line$Either, confirmation has not yet been received that the town may undertake such works, but the loan agreements with Íslandsbanki and the Depfa wind-down board contain extremely onerous terms regarding the municipality's further indebtedness. Furthermore, the municipality is well above thethe target for an acceptable debt ratio according to the new Municipal Act. Plans for building works at the primary schools in the coming months therefore give the parties involved expectations and hopes for which there is no basis at present. Furthermore, the anticipated cost of such a project is not included in the budget currently before us.“$line$$line$Valdimar Svavarsson (sign), Rósa Guðbjartsdóttir (sign), Kristinn Andersen (sign),$line$Geir Jónsson (sign) and Helga Ingólfsdóttir (sign).$line$$line$Guðrún Ágústa Guðmundsdóttir made a point of order. Helga Ingólfsdóttir responded to the point of order. Guðrún Ágústa Guðmundsdóttir made a second rebuttal. Helga Ingólfsdóttir made a second reply. Guðrún Ágústa Guðmundsdóttir made a brief comment. Lúðvík Geirsson spoke. Rósa Guðbjartsdóttir made a rebuttal. Lúðvík Geirsson replied to an intervention. Rósa Guðbjartsdóttir made a second intervention. Lúðvík Geirsson replied to a second intervention. The First Deputy Chair, Kristinn Andersen, took the chair. Margrét Gauja Magnúsdóttir took the floor. The Chair took the chair again. $line$$line$Geir Jónsson then took the floor and put forward the following motion on behalf of the representatives of the Independence Party:$line$$line$“Termination of the contract for cleaning in primary schools$line$$line$The Hafnarfjörður Town Council resolves to terminate the contracts for cleaning in the town's primary schools with effect from the end of the year. The notice would take effect on 1 July 2013, and from that time the cleaning of school premises in Hafnarfjörður would be the responsibility of school caretakers in the borough's primary schools. Instead, the working hours of caretakers and, in some cases, janitors and support assistants would be increased. The savings from these changes could amount to around 100 million krónur per year. $line$$line$Explanatory Note:$line$$line$The estimated cost of cleaning in Hafnarfjörður's primary schools is approximately 130 million króna for the year 2013. This cost can be largely saved by entrusting the cleaning in the primary schools to school staff, as such an arrangement for cleaning in the schools exists, for example, in Akureyri, Garðabær and Kópavogur. $line$$line$This is the unanimous assessment of the author of the report on the management and recommendations for the education department, which was prepared in 2010 for the Hafnarfjörður Education Council.$line$$line$For the year 2013, it can be estimated that this change could lead to savings of up to 45-55 million króna, but on an annual basis around 100 million króna, and this is despite the fact that staff numbers in the schools are expected to increase, as detailed above.“ Valdimar Svavarsson (sign), Rósa Guðbjartsdóttir (sign), Kristinn Andersen (sign), Geir Jónsson (sign) and Helga Ingólfsdóttir (sign).$line$$line$Rósa Guðbjartsdóttir took the floor and put forward the following motion on behalf of the Independence Party representative:$line$$line$“Development project at Engidal School for children aged 2–10 years$line$$line$ The Hafnarfjörður Town Council agrees to undertake a development project at the Víðistaðaskóli site in Engidal. A comprehensive school for 2–10-year-old children will be established there, with a focus on developmental work in specific areas. The school will operate on the basis of Protocol 5 of the collective agreement between the Municipalities“ Salary Commission and the Icelandic Teachers“ Association for primary schools. The school would be guided by the new core elements of education and key competences, such as literacy, sustainability, health and well-being, democracy and human rights, equality and creativity. Furthermore, the school would be a leading school in the field of information technology, where a special development project would be devised on the use of electronic teaching materials.$line$The Education Department, in consultation with the working group on school organisation, would work on the implementation of the proposal by 1 March 2013.“$line$$line$ Valdimar Svavarsson (sign), Rósa Guðbjartsdóttir (sign), Kristinn Andersen (sign), $line$ Geir Jónsson (sign) and Helga Ingólfsdóttir (sign).$line$$line$Geir Jónsson took the floor and put forward the following motion on behalf of the Independence Party representatives:$line$$line$"Future Use of St. Joseph's Hospital$line$Borough Council agrees to instruct the Mayor to advocate that the state and the Borough of Hafnarfjörður, the owners of St. Joseph's Hospital, immediately advertise the building for use and seek proposals for activities within it. $line$$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$$line1TP4 The building has a remarkable history; it was designed by Guðjón Samúelsson, construction began in 1924, and hospital operations were continuous in the building until 2011. It is imperative that the building is properly looked after in terms of inspection and maintenance, as St. Joseph's Hospital is a magnificent and prominent landmark in the townscape of Hafnarfjörður, and it is vital to breathe new life and activity into it. The hospital building is 85% owned by the state, compared to 15% by the City of Hafnarfjörður, and it is in the city's interest that the building is put to use."$line$$line$ Valdimar Svavarsson (sign), Rósa Guðbjartsdóttir (sign), Kristinn Andersen (sign), $line$ Geir Jónsson (sign) and Helga Ingólfsdóttir (sign).$line$$line$Guðrún Ágústa Guðmundsdóttir took the floor and put forward amendments to the proposals submitted by the representatives of the Independence Party. Rósa Guðbjartsdóttir made a point of order. Guðrún Ágústa Guðmundsdóttir replied to the intervention. Rósa Guðbjartsdóttir intervened for a second time. Hörður Þorsteinsson took the floor. Rósa Guðbjartsdóttir made a point of order. $line$$line$Proceeded to a vote on the proposed amendments by Guðrún Ágústa Guðmundsdóttir. $line$$line$The Hafnarfjörður City Council approved, by 11 unanimous votes, to refer the proposed motion from the representative of the Independence Party – Rationalisation of the administration of the City of Hafnarfjörður – to the Town Board for further consideration. $line$Beyjarstjórn Hafnarfjarðar approved by 11 unanimous votes to refer the proposed motion from the representative of the Independence Party – a cost-benefit analysis of the allocation of plots on Völlum 7 – to the town council for further consideration. $line$Beyjarstjórn Hafnarfjarðar approved by 11 unanimous votes to refer the proposed motion from the representative of the Independence Party – Discussions regarding a possible merger of the Port of Hafnarfjörður and Faxaflóahafnir – to the Port Board for further consideration. $line$Borough Council of Hafnarfjörður approved by 11 unanimous votes to refer the submitted proposal from the representative of the Independence Party – Better use of school premises – to the Education Committee for further consideration. $line$Borough Council of Hafnarfjörður approved, by 11 unanimous votes, to refer the submitted proposal from the representative of the Independence Party – Termination of the contract for cleaning in primary schools – to the Borough Council for further consideration. $line$Beyjarstjórn Hafnarfjarðar approved by 11 unanimous votes to refer the proposed motion from the representative of the Independence Party – a development project at Engidalsskóli for children aged 2-10 – to the Education Committee for further consideration.$line$ The Hafnarfjörður Town Council approved, by 11 unanimous votes, to refer the proposed motion from the representative of the Independence Party – Future use of St. Joseph's Hospital – to the Town Board for further consideration. $line$ $line$ Proceeded to a vote on the financial plan for the municipal fund and its enterprises for 2013-2016.$line$$line$Borough Council of Hafnarfjörður approved the following proposed motion with 6 votes in favour. 5 abstained. $line$"The Hafnarfjörður Town Council approves, with the amendments made, the 2013 financial statement and the 2014–2016 plan for the Town Treasury of Hafnarfjörður and its institutions, as presented on 31 October 2012.Key results for Sections A and B are as follows, in thousands of kr. <table><tr><td></td><td>2013</td><td>2014</td><td>2015</td><td>2016</td></tr><tr><td>Statement of Operations</td></tr><tr><td>Income</td><td>17.351.779</td><td>18.242.165</td><td>19.067.140</td><td>19.871.702</td></tr><tr><td>Operating costs</td><td>(14.057.760)</td><td>(14.804.458)</td><td>(15.445.907)</td><td>(16.069.498)</td></tr><tr><td>Brother on life commitment.</td><td>(353.000)</td><td>(373.827)</td><td>(391.771)</td><td>(409.009)<td></tr><tr><td>Write-offs</td><td>(850.500)</td><td>(850.500)</td><td>(850.500)</td><td>(850.500)</td></tr><tr><td>Capital items</td><td>(1.818.406)</td><td>(1.601.458)</td><td>(1.458.322)</td><td>(1.577.773)</td></tr><tr><td>Operating result</td><td>272.113</td><td>11.922</td><td>920.640</td><td>964.922</td><tr></tr><tr></tr><tr><td>Balance sheet</td></tr><tr><td>Assets</td><td>45.853.253</td><td>45.470.727</td><td>44.674.225</td><td>44.348.309</td></tr><tr><td>Own funds</td><td>6.732.884</td><td>7.344.807</td><td>8.265.446</td><td>9.230.370</td></tr><tr><td>Debts</td><td>39.120.369</td><td>38.125.920</td><td>36.408.779</td><td>35.117.939</td></tr><tr></tr><tr></tr><tr><td>Cash flow</td></tr><tr><td>Working capital from operations</td><td>2.113.962</td><td>2.260.413</td><td>2.552.726</td><td>2.759.798</td></tr><tr><td>Investments</td><td>(260.000)</td><td>(370.000)</td><td>(370.000)</td><td>(370.000)</td></tr><tr><td>New loans</td><td></td><td></td><td>8.800.000</td><tr><td>Gr. ofb. loan commitment</td><td>(1.915.404)</td><td>(1.886.811)</td><td>(11.359.346)</td><td>(2.393.583)</td></tr></table> $line$Guðrún Ágústa Guðmundsdóttir submitted the following statement on behalf of the representatives of the Social Democratic Alliance and the Left-Green Party:$line$$line$“A VISIBLE SUCCESS OF RESPONSIBLE FINANCIAL MANAGEMENT$line$-DEBT RATIO DECREASES AND INCREASED FUNDS ALLOCATED TO CAPITAL PROJECTS AND MAINTENANCE$line$Since the economic collapse in the autumn of 2008, work has been underway to reorganise the finances of the City of Hafnarfjörður. This restructuring has involved responding to the direct consequences of the crash and securing the foundations for a sound financial position for the future. This plan clearly demonstrates the significant success of the difficult measures taken in previous years. The debt ratio for Hafnarfjörður, as a percentage of income, will decrease according to the 4-year plan, from 2,251% to 1,661% over the period. The property tax rate and residential plot rent are being reduced, and increased funds have been allocated for construction, maintenance, and equipment purchases. The council's fee schedules have been reviewed, and income thresholds have been raised for additional subsidies for educational services. In addition, the income thresholds for the property tax subsidy for the elderly and disabled have been increased in accordance with the 2013 budget.DEBT REDUCTION - POSITIVE OPERATING RESULT. The operating result for Sections A and B for the year 2013 is a positive kr. 272 million. and the operating result for A part is 46 m.kr. The Group's total assets are estimated at approximately 46 billion kr. at the end of 2013, and liabilities and commitments are estimated at approximately 39 billion kr., with equity at approximately 7 billion kr. $line$Projected operating cash flow from A-part operations is approximately 1.4 billion kr., and the combined total for A and B parts is 2.1 billion kr., which is just over 12% of total revenue. $line$In 2013, loan repayments and liabilities are projected to be approximately 1.9 billion kr.$line$TAXES ARE REDUCED $line$- RATE OF PROPERTY TAX ON RESIDENTIAL PROPERTY REDUCED$line$Property tax on residential property is reduced from 0.32% to 0.30%, or by 6.25%, $line$ Site rent is reduced from 0.42 % to 0.40 %, or by 4.76%$line$ Water charge is reduced from 0.112 % to 0.105 % or by 6.25%. $line$The sewerage charge increases from 0.185% to 0.195%, or by 5.41% $line$$line$ADDED FUNDS FOR INFRASTRUCTURE$line$- INCREASES BY 37% YEAR-ON-YEAR$line$The budget for projects is 260 million króna and increases by 70 million króna year-on-year, or by 37%. $line$Pavements at Ásland 3, Velli 5 and 6 and Norðurbakka$line$Strandgata, Dröfn Street, pedestrian and cycle paths, expansion of Álfaberg Nursery School, design of a nursery school at Bjarkavelli, design of Ásvallabraut, Kaplakriki, athletics stadium$line$$line$ INCREASED FUNDS FOR MAINTENANCE$line$- INCREASES BY 169% YEAR ON YEAR$line$ The budget for maintenance of property and roads is approximately 376 million króna, an increase of 236 million króna or 169% year on year. $line$Primary schools and music school by 69 m.kr. $line$Nurseries by 41 m.kr. $line$Sports and swimming facilities by 59 m.kr. $line$Other buildings by 35 m.kr. $line$Housing by 52 m.kr. $line$STRENGTHENING FAMILY SERVICES$line$- INCREASING SUPPLEMENTARY PAYMENTS$line$In the budget, increased funding is provided for Family and Education Services. $line$The number of transition periods in primary schools will be increased from the next school year.$line$The payments to parents for children in day care will increase.$line$The income thresholds for additional subsidies will increase by 9% from 1 January and by 5.1% on 1 August 2013. $line$SUBSTANTIAL SUCCESS$line$Since the economic crash in the autumn of 2008, work has been underway to reorganise the finances of the City of Hafnarfjörður. This restructuring has involved responding to the direct consequences of the crash and securing the foundations for a stable financial position for the future. This plan clearly shows how successful the measures of previous years have been. $line$We are on the right track. The budget sends a clear message of sound management and responsible financial stewardship, which will deliver more cost-effective operations, good services, satisfied residents and a strong image.“$line$$line$Guðrún Ágústa Guðmundsdóttir (sign), Margrét Gauja Magnúsdóttir (sign), Hörður Þorsteinsson (sign),$line$Guðný Stefánsdóttir (sign), Sigríður Björk Jónsdóttir (sign), Lúðvík Geirsson (sign).$line$$line$Rósa Guðbjartsdóttir made the following statement on behalf of the representatives of the Independence Party:$line$$line$“A heavy debt burden and financing costs are straining the municipal budget and the tax burden on residents is increasing $line$- The Independence Party is putting forward proposals intended to save another one billion króna over 5 years.$line$$line$- Hafnarfjörður's 2013 budget clearly shows the serious financial situation the town is in after the massive debt accumulation by the previous council majority, when a spending spree was the order of the day. $line$$line$- The town's total debt amounts to just over 39 billion kronur, or about 6 million kronur for every family in Hafnarfjörður. Despite grand promises and pledges to reduce debt, according to this plan it will not be possible to reduce the debt ratio, the ratio between debt and regular income, by more than to 225% – from around 250% this year? That debt ratio is one of the highest known in the country's municipalities.$line$$line$$line$- Hafnarfjörður's 2013 budget also clearly shows that the current majority has swept the problem under the carpet, leaving it for the next term of office to resolve. The debt service on loans is very heavy in the coming quarters and years, not least in 2015 when 11 billion króna are due for repayment to the Depfa wind-down trustee. No plans are published in this budget for how this is to be tackled; instead, it has been stated that a loan will be taken out for the repayment. The problem has been pushed ahead of the elections. $line$- $line$- Furthermore, the financial situation is severely weighed down by the fact that a pension liability of 1.7 billion krónur, owed by Byr to the Hafnarfjörður Employees“ Pension Fund, will fall on the municipality as it stands, increasing the town's debt ratio by 9% from what it would otherwise have been. Then there is the capital gains tax of around 600 million króna, which is still unpaid$line$- $line$- In the budget, the tax burden on residents increases, and the increase is above inflation. Therefore, although the property tax rate is lowered from 0.32% to 0.30%, the tax burden on residents increases by 6.7%.a. due to an increase in property valuation, and although the levy rate for plot rent is reduced from 0.42% to 0.40%, the tax burden on residents increases by 7.7%. The levy rate for commercial property remains unchanged year-on-year, and therefore nothing is being done to ease the burden on business.$line$- $line$- $line$- It is highly irresponsible to approve a proposal in the education committee for the construction of a sports hall at Ásland School when no funding for the project is provided for in the budget. Furthermore, it is not clear that the town would be permitted to undertake such works, as the loan agreements with Depfa and Íslandsbanki contain restrictive covenants regarding the council's further indebtedness, in addition to the conditions of the Oversight Board for Local Government Finance.$line$.According to a recent implementation plan, the cost of pending projects and investment needs in the municipality is around 4 billion króna, whereas the 2013 budget allocates approximately 260 million króna to the sector as a whole. The accumulated maintenance backlog due to reduced funding for the sector amounts to several hundred million, and although funding for the sector will be increased next year, it is clear that it will still not be possible to complete the finishing of pavements in new housing estates and that numerous other issues are awaiting to be addressed. There are no plans to make further operational savings, unless it is the other way around, as operating costs are rising in most areas, let alone seeking new approaches in this regard. By cutting staff wages, keeping maintenance and projects down, raising fees for families with children and reducing services, as has been done in recent years, the majority believes they can keep things ticking over. The majority's proposals contain no constructive or innovative suggestions on how to increase the town's revenue, utilise its resources and human capital, or reduce overhead costs. $line$$line$ On the processing of the 2013 budget, the Independence Party has put forward proposals that could lead to efficiencies, create new job opportunities and thereby generate revenue for the municipality. In the proposals, foresight was the guiding principle in the council's otherwise extremely tight financial position. Roughly calculated, the proposals could yield another one billion krónur over a five-year period.$line$$line$The Independence Party's proposals are as follows:(see detailed explanation above in the minutes):$line$$line$1. Better use of school premises$line$2. Contract for cleaning in primary schools terminated$line$3. Negotiations on a possible merger of the Port of Hafnarfjörður and the Faxaflói Ports$line$4. Development project at Engidalsskóli for children aged 2-10$line$5. Cost-benefit analysis for the allocation of plots in Hádegishlíðar (Vellir 7)$line$6. Streamlining the administration of Hafnarfjörður Municipality$line$7. Future use of St. Joseph's Hospital"$line$$line$Valdimar Svavarsson (sign), Rósa Guðbjartsdóttir (sign), Kristinn Andersen (sign),$line$Geir Jónsson (sign) and Helga Ingólfsdóttir (sign).