A major turnaround in operations
Hafnarfjörður's operating result for the first half of the year was a surplus of approximately 483 million króna, whereas the plan had anticipated a surplus of 134 million króna. The analysis of the council's overall operations and finances, and the measures that were taken, are beginning to yield the expected results.
Operating result
Hafnarfjörður's first-half profit was a positive 483 million krónur, but
The plan provided for an operating surplus of 134 million króna. Positive
A turnaround has taken place in operations year-on-year, but the half-year accounts
Last year resulted in a deficit of around 389 million króna. Analysis of
the overall operations and finances of the municipality and the measures that were taken
Subsequently, they have started to deliver the expected results.
Current assets from operations in the first half of 2016 amounted to approximately 1,651
million króna which is about 15% of total revenue, while operating cash flow was about
293 million króna in the first half of 2015, or about 31% of total revenues. The main
The variance in the operating result of the 2016 interim statement is due to income from
direct payments are about 147 million króna over the estimate and the cost of capital is about
282 million krónur lower than the forecast due to lower indexation.
Revenues totalled 11,129 million króna, which is 153 million above the forecast.
Wages and salaries are, as before, the largest items of expenditure.
of the municipality and amounted to 5,236 million króna, which is 92 million króna
higher than the plan had provided for. Other costs were 3,667 million, which is 46
millions of kroner under budget. The operating result before depreciation was positive as
amounted to 1,738 million krónur, depreciation was 446 million krónur and
Capital items 809 million króna. „Emphasis
has been placed on the measures that have been taken in the aftermath
that the operational review does not bite into the council's services for residents and businesses
Rather, this is a rethinking of the foundation on which the municipality's operations are run.
is based on a concurrent change in prioritisation and projects with the aim of
improve operations and increase services. If we play our cards right, as we
If we continue as we have done for the past few months, we will manage to pay off our unfavourable debts,
Increase services, focus more on maintenance and start to do even more for
equity in the coming quarters. I am extremely proud of my people and this
success“ says Haraldur L. Haraldsson, the mayor.
Running of policy areas in
Keep pace with plans
The running of the portfolios went well and was in line with plans.
The largest policy area is, as before, education and childcare, but to it was
spent around 5.004 billion króna during the period, on social services around 1.434
million króna and to youth and sports affairs by 917 million króna. A great
A turnaround has occurred in the council's operations year-on-year, which is best seen
when a comparison is made of operating surplus. The deficit for the first 6 months of 2015 was
about 389 million króna, compared with an operating surplus of 483 million króna now
year. ,The operation of the City of Hafnarfjörður is going
well. The quarterly report clearly shows what a turnaround has taken place in
the operation, which is primarily explained by the targeted optimisation measures of the current
majority. This positive outcome means that both are on the horizon.
simultaneously strengthening infrastructure and reducing the town council's debt“ says Rósa
Guðbjartsdóttir, Chair of the Hafnarfjörður Town Council.
Total assets at the end of June amounted to a total of 49,023 million króna.
and had they increased by 543 million during the period. Total liabilities and
Total liabilities amounted to 40,243 million krónur. Plans provide for
continued debt repayment during the year and that the debt ratio will be brought under control
down to 150% in mid-2017. „It is very pleasing to see
The foundation and balance of the operation are strengthened, as the turnaround in finances has
The town's has had to be our absolute priority over the past few terms. This
Success gives us reason for optimism for the future.“says Guðlaug Kristjánsdóttir, Mayor of the Borough Council
of the City of Hafnarfjörður.
The annual accounts of the Municipality of Hafnarfjörður for the year 2016 were
Presented to the town council today and is now available here