A healthy operating surplus is expected for the City of Hafnarfjörður.

The budget for the City of Hafnarfjörður, approved by the city council today, provides for a surplus of 1.157 billion krónur in the A and B parts of the municipality next year. The A-section's operating surplus is projected to be 591 million króna in 2023. Operating cash flow is projected to be 3.91% of total revenues, or 1,697 million króna.

Hafnarfjörður's financial position is good, and the municipality's debt ratio is forecast to continue to fall, reaching approximately 93% by the end of 2023. which is well below the 150% debt ratio according to the regulations on financial benchmarks and supervision of the finances of local authorities. The council tax rate will remain unchanged, and the overall burden of property taxes on residential properties will be reduced through a decrease in water and sewerage charges. The tax rate on commercial properties in Hafnarfjörður remains one of the lowest in the capital region.

„It is extremely positive that the Municipality of Hafnarfjörður is reporting a good operating surplus in the current environment, which is proving challenging for many municipalities. It has managed to protect the interests of residents and move forward without incurring debt.” says Rósa Guðbjartsdóttir, the mayor.“Nowhere else in the country is there as much development as in Hafnarfjörður, and it is estimated that the town's population will increase by up to a quarter over the next three to four years. ÍResidential neighbourhoods are rising and expanding with mixed-use development in beautiful surroundings in Hamranes, Skarðshlíð and Ásland, and with densification of older areas. At the same time The number of businesses in Hafnarfjörður is steadily increasing. There are also several major projects in the pipeline in the town, such as the development of the town centre and Flensborg Harbour, the planned relocation of the Technical College to the harbour, the development of the Krýsuvík area, and significantly increased activity in Straumsvík in connection with CodaTerminal.  These projects will gain significant momentum in the coming months and quarters..“

Hafnarfjörður is the third largest municipality in the country, with total expenditure amounting to approximately 38.0 billion króna, an estimated wage cost of 21.7 billion króna and an estimated financing cost of approximately 2.4 billion króna. In 2021, the operating result was a negative 709 million króna, and in 2020 it was a positive 2,264 million króna.  The budget for the City of Hafnarfjörður was presented for a second reading and approved at a meeting of the City Council of Hafnarfjörður on Wednesday, 7 December 2022. The budget covers the coming year, as well as a three-year plan for 2024-2026.

Key findings of the 2023 budget

• Operating profit for A and B sections positive at 1,157 million króna
• Operating result of Section A positive at 591 million króna
• The debt ratio continues to fall and is estimated at around 93.1% at the end of 2023.
• An efficiency saving of 500 million krónur will be made in the municipality's operations in 2023.
• Projected operating cash flow from A- and B-sections of 1,697 million króna, or 3.91 TP3T of total revenue
• Council tax percentage unchanged, at 14.481%
• Reducing the overall property tax burden on residential properties by lowering water and sewerage charges.
• Estimated investments amount to just over 7 billion króna.
• A significant increase in population next year, in addition to more and more companies choosing to settle in Hafnarfjörður.

Some of the main investments in the new budget

The budget for capital projects for 2023 is approximately 7 billion króna. The plan prioritises core services, such as environmental matters, transport, sports facilities, housing, and sewerage.

• Landscaping of new developments, such as tarmacking, the construction of patios, paths and play areas.
• Redevelopment of junctions and walking routes and a special initiative to enhance cycling routes
• Greenery increased in the town's neighbourhoods and a drive to green the Valleys
• The Beautification of Hellisgerði on the Garden's Centenary
• Construction of a sports hall on the Haukar club grounds
• Construction of a new riding arena on the Sörli club grounds
• Construction of a hybrid football pitch on the FH club grounds
• Improvements to the facilities at the Sports Hall on Strandgata
• Refurbishment of the interior of the Hafnarfjörður Swimming Pool, which will turn 80 this year.
• Numerous other projects will then be undertaken, including in schools, nurseries, playgrounds and tourist sites, as well as further development of the South Harbour and works by the Water and Sewerage Company.

Attached are the budget and supporting documents for 2023-2026:

• Explanatory Memorandum to the 2023 Budget
• Hafnarfjörður Municipality_Budget 2023-2026