Results above forecast
The annual accounts for the Municipality of Hafnarfjörður for 2021 were presented to the town council today. The operating result for Sections A and B was a negative 709 million króna in 2021. The forecasts had anticipated a negative result for the period, and the outcome is 258 million krónur better than forecast. This result is mainly explained by a 2.3 billion króna increase in the pension liability last year. Of this, new actuarial calculations of life expectancy cause an increase in the City of Hafnarfjörður's liabilities of around 900 million króna.
The annual report of the Municipality of Hafnarfjörður for the year 2021 was presented in
to the town council today. The operating result for parts A and B was a deficit of 709 million.
króna in 2021. Forecasts had anticipated a negative result for the period and
the result is 258 million krónur better than estimated. This result is mainly explained by a 2.3 billion króna increase
pension liabilities last year. This is due to new calculations.
Actuaries estimate a 900 million króna increase based on life expectancy assumptions.
Obligations to the City of Hafnarfjörður.
„The annual accounts reflect the increased financial strength of the City of Hafnarfjörður, despite significant challenges in the operating environment for local authorities last year. This is most evident in the substantial increase in investments and the significant repayment of long-term loans.,“says Rósa Guðbjartsdóttir, the mayor.„It now comes down to us, the people of Hafnarfjörður, how long the payments into pension liabilities were delayed. The municipality was many years behind its neighbouring municipalities, as it did not begin making payments until 2012. The robust development in Hafnarfjörður is most evident in the strong revenue from the sale of plots for residential and commercial use. This development will deliver a lasting increase in income tax revenue for Hafnarfjörður.“
Increased wage costs are a significant burden in Hafnarfjörður, as with other local authorities.
Operating revenue amounted to 33.6 billion króna in 2021 and operating expenses
were 31.2 billion króna. Operating result before depreciation and
The capital item was positive by 2.4 billion króna. Increased wage costs offset this.
Heavy in Hafnarfjörður as with other municipalities but wages and wage-related
Fees increased by 9.41% year-on-year. The negative effects of the Covid-19 pandemic are added.
on income and expenditure. Plots were sold for 3.5 billion króna and were recorded as income.
2.5 billion from land sales and about a billion from a reduction in property transfers.
Debt ratio remains unchanged and debt-to-income ratio falls significantly
The municipality's loans were reduced by 2 billion kronur last year.
No new loans were taken out in 2021, with the exception of a 350 million króna
Funding from the Housing Office for the purchase of social housing.
Hafnarfjörður's debt ratio remained unchanged at 101% year-on-year and the debt ratio
decreased significantly, from 161% to 149%. Operating cash flow was 1.4
billion króna or 4.11% of total revenue.
An increase of almost 30% in investments year-on-year
Investments in 2021 amounted to 4.4 billion krónur, which is almost 30%
an increase year-on-year. Total assets at the end of the year were 72.2 billion króna and
increased by 5.2 billion króna year-on-year. Total liabilities and
The municipality's liabilities of 50 billion króna remained virtually unchanged
between years despite a significant increase in pension liabilities.
The pension liability is now about a third of all total debts and liabilities.
of the municipality.
Annual report of the Municipality of Hafnarfjörður for the year 2021