Debt ratio not this low in a quarter of a century

Annual accounts
The 2018 budget for the City of Hafnarfjörður was approved at a meeting of the Hafnarfjörður City Council on
day. The operating surplus of Sections A and B of the municipal fund amounted to 1,129 million króna, despite significant investments and unavoidable borrowings during the year. Debt ratio
The municipality's has come down to 112% and has not been lower in 25 years.

The 2018 annual report of the City of Hafnarfjörður shows that the financial position
The municipality continues to strengthen. Total annual revenue was 3.6% over
plan or 926 million króna. Operating cash flow was 3,863 million króna.
or 14.41% of total revenue. Operating surplus for the year for A and B sections of the municipal fund
amounted to, as previously stated, 1,129 million króna despite important
investments and unavoidable borrowing during the year, as provided for in the 2018 budget
A forecast for a 799 million króna operating surplus. Operating result for Section A positive at approximately 490 million króna
whereas the plan had provided for a surplus of 213 million króna. Better result
is explained, among other things, by 236 million króna higher tax revenues. Rósa
Guðbjartsdóttir, the mayor of Hafnarfjörður, is hopefully pleased with
the results. „Operation
Hafnarfjörður is reliable and it is clear that discipline, supervision and responsibility
Financial management is paying off. The debt ratio continues to fall and operating results
Overall positive and ahead of schedule. Responsible financial management in recent years has
strengthen the foundations of the council's operations and make it better equipped
to tackle economic challenges and the tasks that lie ahead. We
We look to the future with optimism and will continue to take safe and considered
a step towards even more robust services, investment and implementation“. Operation
Budgets were in line with the financial plan, but the main deviations can be attributed to an increase
care fees, increased costs in matters concerning disabled people and outsourced
teaching services.

Invested for about 5.3
billion a year

Population growth necessitates the development of infrastructure.
alongside essential maintenance on the town's assets. An investment of 5,289 was made
millions of kroner in infrastructure and services during the year. The largest projects were
Construction of a new school in Skarðshlíð for 20.61 million króna and a care home.
for 850 million króna. Construction of sports facilities at Ásvellir,
Kaplakrika and Við Keili amounted to a total of approximately 696 million króna. Purchase price of flats in
The council's social housing stock amounted to 457 million krónur and refurbishments
at St. Joseph's Hospital, around 113 million kroner. About one billion kroner went into
works on road construction, including on the Reykjanesbraut. At the same time, increased
Funds have been allocated to education and leisure, and family services.
of the municipality. New loans were taken out during the year for the settlement with the Brú Pension Fund.
about 2 billion króna and about 1.4 billion króna for construction
nursing home. In addition, a loan of 500 million króna was taken out for investments.
Housing Office for rented accommodation in the social system. Payments of long-term debts
a total of 1.6 billion króna, or about 200 million króna, in excess of repayments
in accordance with loan agreements.

Total assets according to the consolidated balance sheet at the end of
Total revenue for the year amounted to 55,971 million króna, an increase of 4,798 million year-on-year.
Total liabilities and commitments were 43,191 million krónur and increased by
3,004 million króna year-on-year. Equity was 12,780 million króna. Long-term debt
increased by 2,944 million króna due to the aforementioned borrowing,
The pension liability increased by 525 million króna, while short-term debt decreased.
about 763 million króna.

Annual Report of the Municipality of Hafnarfjörður 2018