Hafnarfjörður's operating profit positive by almost a billion

The operating result for the City of Hafnarfjörður for the first half of the year was a surplus of approximately 908 million krónur, whereas the budget had forecast an operating surplus of 285 million krónur. The main variances are that revenues are approximately 400 million króna higher than forecast and finance costs are approximately 203 million króna lower than forecast due to lower indexation. Otherwise, the budget is met in its main aspects.

„It is really positive to see these results and we welcome them of course. We have worked purposefully towards this and it is an achievement in which all the council's staff share. We are going to continue on this path and hopefully maintain this trend throughout the financial year.“ said Haraldur L. Haraldsson on the half-yearly accounts, which were presented to the town council this morning, Thursday, 7th September.

Revenues amounted to 12,160 million krónur, which is, as previously stated, around 400 million above budget. Wages and salary-related costs are the municipality's largest expenditure items, amounting to 5,768 million krónur and almost on budget. Other expenses were 3,798 million króna, which is 63 million króna below budget. The operating result before depreciation was a positive 2,107 million króna. Depreciation was 461 million kronor and financial items 738 million kronor. Operating cash flow amounted to approximately 2,014 million kronor, which is about 16.61% of total revenues.

It should be noted that due to an agreement with the Brú Pension Fund, an additional 600 million króna will be expensed during the year, on top of the previously estimated expense for the year. The final settlement will take place in the autumn. However, land sales for the year have gone well so far, and a revenue recognition will be made at the end of the year for sold plots, which will offset this expense.

The management of portfolios went well and was in line with plans. The largest policy area is education and childcare, to which approximately 5,632 million króna was allocated, to social services approximately 1,551 million króna, and to youth and sports affairs approximately 937 million króna.

Total assets amounted to 49,032 million króna at the end of June, having increased by 729 million since the end of 2016. Total liabilities and commitments amounted to 38,979 million krónur, down by 178 million from year-end. No loans are planned for the year.

The population of Hafnarfjörður was 29,014 in mid-year, compared with 28,779 at the start of the year, an increase of 235 or 0.81%.