Budget for 2024 approved
A substantial surplus from the operation of Hafnarfjörður municipality and a reduction in property tax rates. The budget for Hafnarfjörður, which was approved by the town council yesterday, provides for a surplus of 1,725 million króna in the A and B sections of the municipality next year.
Substantial surplus in the operation of Hafnarfjörður municipality and property tax rate ratios decrease
The budget for the City of Hafnarfjörður, which was approved by the city council yesterday, provides for a surplus of 1,725 million krónur in the A and B parts of the municipality next year. The A-section's operating surplus is projected to be 861 million króna in 2024. Operating cash flow is expected to be 5.41% of total revenues, or 2,619 million króna.
Debt ratio is reduced, council tax rate remains unchanged and the property tax rate is lowered.
The financial position of the Municipality of Hafnarfjörður is good, and the municipality's debt ratio is projected to continue to fall, reaching approximately 86% by the end of 2024, which is well below the 150% debt ratio according to the regulations on financial benchmarks and supervision of municipal finances. The council tax rate will remain unchanged, and the property tax rate for residential and commercial properties will be reduced from 0.223% to 0.217% to offset the increase in property valuations. The rate for business property will be reduced from 1.4001% to 1.3871%. ,The emphasis continues to be on ensuring the operations of the City of Hafnarfjörður are disciplined and that respect is shown for taxpayers“ money. Good management in recent years helps now that economic conditions in society are challenging.“ says Rósa Guðbjartsdóttir, the mayor. ,“We are anticipating a healthy surplus from operations and want to see the council's debt ratio continue to fall. To that end, it is important to keep borrowing to a minimum. At the same time, emphasis is placed on further enhancing services for residents and continuing with extensive infrastructure development."
Hafnarfjörður is the third largest municipality in the country, with total expenditure amounting to approximately 43.0 billion króna and projected wage costs of 24.7 billion króna. This year's forecast predicts a surplus of 680 million króna for 2023.
Key figures from the 2024 budget
- Operating result of Sections A and B positive at 1,725 million króna
- Operating surplus of A-section at 861 million króna
- Debt ratio estimated at around 861% at the end of 2024
- Estimated operating cash flow from A- and B-sections of 2,619 million króna, or 5.41% of total revenue.
- Council Tax percentage unchanged at 14.71%
- The rate of property tax on residential and commercial property was lowered to offset an increase in property valuation.
- A general increase in the tariff of 9.91% is planned to cover inflation and wage rises exceeding this year's forecasts, and the expected inflation for next year. Tariffs may be reviewed if the outcome of the collective bargaining agreements provides cause for it. The tariff for waste collection is generally increasing by 9.9%, but a change in the composition of residents' bins could significantly reduce this increase.
- Leisure grants for young people increase from 54,000 to 57,000 krónur.
- Estimated investments amount to almost 8.5 billion krónur.
Some of the main investments in the new budget
The capital budget for 2024 is approximately 8.5 billion króna. The new budget places an emphasis on prioritising core services, such as environmental matters, transport, sports facilities, housing, and sewerage.
- Finishing of new building sites throughout the town
- Reshaping junctions, pavements and footpaths, and improving cycling routes.
- Renovation of older play areas
- Increase in local stations
- Focus on increased greenery in the town's neighbourhoods
- Renovations and maintenance of school buildings and grounds
- Preparations for a new nursery and primary school in Hamranes have begun.
- Improvements to the facilities at the South Pool and preparation for the design of an outdoor area at the Ásvallalaug pool.
- Construction of a sports hall on the Haukar club grounds, scheduled for use at the end of 2024.
- Construction of an indoor riding arena on the grounds of the Sörli equestrian club.
- Completion of the Hafnarfjörður Gymnastics Club's hybrid pitch
- Improvements to the facilities at the sports hall on Strandgata
Work is also continuing on the preparation of various major projects on behalf of the town, such as the development of the town centre and Flensburg Harbour, the proposed relocation of the Technical College to the harbour area, the development of the Krýsuvík area and potentially increased harbour operations in Straumsvík in connection with the Coda Terminal project. 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 Monday, 4 December 2023. The budget covers the coming year, as well as a three-year plan for 2025-2027.