Hafnarfjörður's budget approved

Hafnarfjörður's budget
was presented for a second reading and approved at a meeting of the Hafnarfjörður Town Council
today, Wednesday, 16 December. The budget covers the next year as well as three
Three-year plan for 2022-2024. Projected operating deficit of Parts A and B
The municipality's amount amounts to 1,221 million króna in the year 2021. It is expected that
operating cash flow will be 5.5% of total revenue or 1.7 billion króna.

Key findings of the 2021 budget:

• Operating result of A and B sections negative by
  1.221 million kronor.
• Debt ratio 114% at the end of 2021.
• Projected operating cash flow from A and B sections: 1.7
  billion króna or 5.51% of total revenue.
• Council tax percentage unchanged at 14.481%.
• The total property tax charge is reduced by a lower
  property taxes and water and sewerage charges to offset the increase
  property valuation.
• It is generally expected that the 2021 tariff will remain unchanged or increase in line with the index.
• The plan provides for the sale of plots to the value of 500
  millions of kroner.
• Estimated investments amount to a total of 4.3
  billions of kroner.
• Purchase of social housing amounts to 500 million
  crown.

Emphasis placed on minimising the impact of Covid-19 on residents.

Like other local authorities, the City of Hafnarfjörður has had to respond.
the economic and social consequences of the Covid-19 pandemic, which
Property tax revenues have decreased, and social spending has increased in parallel. A law has been
the emphasis has been on minimising the impact of the pandemic on the residents of Hafnarfjörður and preventing
to prevent the economic shock from placing a permanent burden on the municipality. That
has been carried out through coordinated actions which have involved targeted
restructuring, moderate borrowing and asset sales.

Attached are
Budget and supporting documents for the 2021-2024 budget:

• Explanatory Memorandum to the 2021 Budget
• Hafnarfjörður – Budget 2021-2024
• Hafnarfjörður – Policy Area Overview 2021-2024