Town Council

General presentations

• 1104347 – Loan refinancing

  Item 6 from the minutes of the BÆJH meeting of 1 December was taken up again. The mayor and the finance director reported on discussions with the city's lenders. In addition, Gudmundur Hjaltason from MP Bank and Kristján Þorbergsson from Landslög attended the meeting. The Town Council refers the matter to the Town Board for its decision.

  Guðmundur Rúnar, the Mayor, spoke under the rules of procedure and put forward the following motion: “The Hafnarfjörður City Council, with reference to Article 17. art. of the adopted Regulations on the Administration of the Municipality of Hafnarfjörður and the Rules of Procedure of the Municipal Council, that the discussion and handling of item 1 on the agenda of the municipal council meeting on 7 December 2011, the refinancing of loans, be held in private session.“$line$$line$The City Council of Hafnarfjörður approved the proposed motion with 6 votes in favour. 5 voted against. $line$$line$Guðmundur Rúnar Árnason spoke again and put forward the following motion:$line$$line$“The City Council of Hafnarfjörður approves and confirms the terms and transactions as set out in the terms document dated. 5 December 2011 (hereinafter referred to as the terms document), which was presented at a meeting of the City Council and reflects discussions with DEPFA ACS Bank and FMS Wertmanagement. The latter is a legal entity established by the German government in July 2010 for the restructuring of the HRE Group (of which DEPFA ACS Bank is a part), and therefore has a direct interest in the following loans between the City of Hafnarfjörður and DEFPA ACS Bank:$line$(i) facility agreement dated 1 December 2003 (as amended by an addendum dated 27 March 2007;$line$(ii) facility agreement dated 22 January 2007; and $line$(iii) facility agreement dated 1 April 2008$line$(hereinafter referred to as the “older loan agreements“). The term sheet addresses the refinancing/restructuring of the older loan agreements. The Town Council approves the refinancing/restructuring described in the term sheet, on the terms and conditions set out in the document.$line$B The Town Council authorises the Mayor to conclude the transaction in substance in accordance with the terms set out in the terms document and gives him full and unlimited authority to sign the terms document on behalf of the Town, with binding effect, new loan agreements, and, as necessary, approve amendments to the older loan agreements (in whole or in part), pledge agreements and any other documents, instructions and notices (including notice of drawdown) or other notices necessary to give effect to the terms set out in the terms sheet.“$line$$line$ $line$Valdimar Svavarsson rose to make a point of order. Guðrún Ágústa Guðmundsdóttir took the floor. Then Lúðvík Geirsson and Sigríður Björk Jónsdóttir. Guðmundur Rúnar Árnason spoke. Sigríður Björk Jónsdóttir spoke again.$line$$line$The Hafnarfjörður Town Council approved the proposed motion with 6 votes. 5 voted against. A short break was taken. $line$$line$Valdimar Svavarsson took the floor and, on behalf of the representatives of the Independence Party, submitted the following statement:$line$$line$“Heavy repayment burden and the problem is kicked down the road until the next election. $line$$line$ The Independence Party strongly criticises the procedure that has been followed in the refinancing of the municipality's loans and the secrecy surrounding this major matter of interest to the people of Hafnarfjörður.With the proposed agreement with the Depfa Bank winding-up committee, the council's financial problems are being kicked down the road into an uncertain future, and the opportunity to achieve a better outcome is being missed. The council's repayment burden will be enormous in the coming years, and other terms in the agreement will tie its hands when it comes to growth and development. It is obvious that the coalition of the Social Democrats and the Left-Greens is postponing tackling the financial crisis until after the next election, in an attempt to save their political careers. Representatives of the Independence Party on the town council have repeatedly pointed out that the financial crisis must be tackled comprehensively and that a financial restructuring of all the municipality's liabilities must be undertaken, with the long-term interests of the town's residents in mind. Such a plan must take into account the municipality's ability to pay, in accordance with its statutory obligations. The agreement now before us is an unacceptable outcome for the people of Hafnarfjörður. It is unacceptable and undemocratic that such great confidentiality surrounds the terms and other provisions of the agreement that the town's residents are not informed of its contents and that the agreement was dealt with behind closed doors. That is why the Independence Party voted against the agreement.$line$This severe financial crisis facing the municipality can be primarily attributed to the spendthrift and reckless policies of the Social Democratic Alliance majority over the past decade, now with the support of the Green Party councillors.$line$$line$ Valdimar Svavarsson (sign), Rósa Guðbjartsdóttir (sign), Kristinn Andersen (sign),$line$ Geir Jónsson (sign), Helga Ingólfsdóttir (sign).$line$$line$Guðrún Ágústa Guðmundsdóttir spoke and submitted, on behalf of the representatives of the Social Democratic Alliance and the Left-Green Party, the following motion:$line$$line$$“An important milestone which will strengthen the position and operations of Hafnarfjörður$line$Settlement between the City of Hafnarfjörður and FMS Wermanagement on behalf of Depfa Bank plc, regarding the refinancing of the debts of the City of Hafnarfjörður, is both an important and welcome milestone which will further strengthen the position and operations of the municipality. The agreement is advantageous for the municipality in every respect and is, at the same time, a vote of confidence from the lenders in the management and operations of the municipality. The agreement is, not least, unequivocal proof of the success achieved in the financial management of the municipality following the setbacks it suffered during the economic collapse just over three years ago. Through good cooperation and collaboration between the municipal authorities, the council's finances and operations.The agreement is, not least, clear evidence of the success achieved in the council's financial management following the setbacks caused by the economic collapse just over three years ago. Through good cooperation and collaboration between the council authorities, $line$$line$Hafnarfjörður enjoys well-deserved trust from creditors who have familiarised themselves with the municipality's operations and financial position.$line$$line$Unresponsible statements by individual councillors of the Independence Party in recent months and quarters, regarding the town's financial affairs, has done little to facilitate the work the town's management has been undertaking in drawing up this agreement. Facts matter more than empty words and outcry, and in this respect, the agreement speaks for itself. It is clear from the discussions and motions of the Independence Party councillors that the agreement causes them great disappointment, but this is clearly for reasons other than the terms on offer to the municipality.The city's negotiating partners have made an unconditional demand for confidentiality regarding the agreement's provisions. However, the current majority would have been happy to disclose all of its provisions. The secrecy of the current majority is not so great that the refinancing has not been discussed at at least twenty meetings of the council's executive and full council. The claims by the Conservative councillors about undemocratic practices are therefore unfounded.$line$The councillors of the Social Democratic Alliance and the Left-Green Party thank the officials and advisors of the municipality who have been involved in drawing up this important agreement."$line$$line$Guðrún Ágústa Guðmundsdóttir (sign), Guðmundur Rúnar Árnason (sign), Lúðvík Geirsson (sign), Guðfinna Guðmundsdóttir (sign),$line$Margrét Gauja Magnúsdóttir (sign), Sigríður Björk Jónsdóttir (sign). $line$$line$ A short break was taken.

• SB040377 – Minutes of the Planning and Building Officer

  Minutes from the planning and building officer's disposal meetings were presented. 16.11.11 and 23.11.11. Item A was dealt with by the building officer in accordance with the Building Act no. 160/2010. Submitted.

  Lúðvík Geirsson left the meeting at 14:38. He was replaced by Hörður Þorsteinsson. $line$$line$Sigríður Björk Jónsdóttir took the floor.

• 1111016 – SSH, changes to the statutes

  Item 3 from the minutes of the BÆJH meeting of 1 December. A proposal was put forward regarding the nomination to the new representative council of the Association of Municipalities in the Capital Region. The Town Council refers the election of 5 representatives to the Town Council.

  A nomination was put forward for the following: Gunnar Axel Axelsson, Brekkugata 18; Sigríður Björk Jónsdóttir, Thrastarsás 3;$line$Eyjólfur Sæmundsson, Fagrihvammur 7;$line$Helga Ingólfsdóttir, Brekkugata 26 Kristinn Andersen, Austurgata 42. $line$$line$ No other nominations were received and the above are deemed duly elected to the new Board of the Association of Municipalities in the Capital Region.

• 1111127 – Terms of reference

  Item 4 from the minutes of the BÆJH meeting of 1 December. Taken up again. Drafts of the council's terms of reference were presented. Also presented were draft regulations on contracts. The Town Council refers the terms of reference and the contract regulations to the Town Board.

  Guðrún Ágústa Guðmundsdóttir took the floor. Sigríður Björk Jónsdóttir took the floor and put forward the following amendment to the terms of reference of the Environment and Operations Committee: In place of the following text in Article 6: „The Council shall handle the tasks entrusted to the Plant Protection Committee under the Land Reclamation Act No. 17/1965 and to the Nature Conservation Committee under the Nature Conservation Act No. 44/1999″….is replaced by the following text: The Environment and Operations Council shall perform the functions of the Nature Conservation Committee, pursuant to the Nature Conservation Act, and the Soil Conservation Committee, pursuant to the Act on Land Reclamation.“ Guðrún Ágústa Guðmundsdóttir took the floor.$line$$line$$line$The Hafnarfjörður Town Council approved, by 11 unanimous votes, the proposed terms of reference for the Town Council and the Environment and Operations Committee, as amended in accordance with the amendment proposal, Family Council, Education Council and Planning and Building Council. The City Council of Hafnarfjörður approved by 11 unanimous votes the proposed rules on contracts.

• 0907115 – Keeping of livestock, adopted, first reading

  Item 5 from the minutes of the Municipal Council meeting of 1 December. The by-law on the keeping of domestic and companion animals was taken up again. The town's solicitor attended the meeting and presented the by-law. The Town Council refers the by-law to the first reading in the Town Assembly.

  Guðrún Ágústa Guðmundsdóttir took the floor. Sigríður Björk Jónsdóttir took the floor.$line$$line$Borough Council of Hafnarfjörður approved, with 11 unanimous votes, to refer the by-law on keeping domestic and companion animals to a second reading in the council.

• 1111384 – Association of Energy Municipalities,

  Item 10 from the minutes of the BÆJH meeting of 1 December. Proposed resolutions and a notification regarding the board of SO, the Association of Energy Municipalities, were presented. $line$Bæjarráð leggur til við bæjarstjórn:$line$“The City Council of Hafnarfjörður resolves to become a founding member of the Association of Energy Municipalities and also confirms that Gunnar Axel Axelsson will be the representative of Hafnarfjörður on the association's board.“$line$

  Guðrún Ágústa Guðmundsdóttir spoke. The City Council of Hafnarfjörður approved the proposed motion with 11 unanimous votes.

Minutes

• 1101098 – Minutes 2011, for presentation to the town council.

  Minutes of the Family Council from 30 November. Minutes of the Sports and Leisure Committee from 23 November. Minutes of the Environment and Operations Committee from 21 and 30 November. Minutes of the Education Committee from 28 November. sl.$line$Minutes of the Town Council from 29 November and 1 December sl.$line$a. Minutes of the Health Committee of the Hafnarfjörður and Kópavogur area from 26 September and 24 October. sl.$line$b. Minutes of the Culture and Tourism Committee from 22 and 23 November. sl.$line$c. Minutes of the Board of the Ski Areas of the Capital Region from 3 November. sl.$line$d. Minutes of the Board of Strætó bs. from 28 October, 11 and 25 November last. Minutes of the Planning and Building Council from 24 and 29 November last.

  Rósa Guðbjartsdóttir spoke under item 6 – Loan refinancing – in the minutes of the town council meeting of 1 December. Helga Ingólfsdóttir and Kristinn Andersen spoke under the same item. Guðrún Ágústa Guðmundsdóttir spoke under the same item. Kristinn Andersen made a point of order. Helga Ingólfsdóttir made a point of order regarding the previous speech by Guðrún Ágústa Guðmundsdóttir. Geir Jónsson spoke under the same item. Guðrún Ágústa Guðmundsdóttir made a point of order. Geir Jónsson replied to the intervention. Guðrún Ágústa Guðmundsdóttir intervened for a second time. Geir Jónsson replied to the intervention for a second time. Valdimar Svavarsson spoke under the aforementioned item 6 of the municipal council's minutes from 1 December. Guðmundur Rúnar Árnason, the Mayor, spoke under the same item. Rósa Guðbjartsdóttir intervened. Helga Ingólfsdóttir intervened in response to Guðmundur Rúnar Árnason's previous speech. Geir Jónsson intervened in response to Guðmundur Rúnar Árnason's previous speech. Mayor Guðmundur Rúnar Árnason spoke again under the aforementioned item 6 in the minutes of the Town Council from 1 December. Geir Jónsson made a point of order. Guðmundur Rúnar Árnason responded to the point of order.

• Budget for the municipal fund and its enterprises 2012-2015, first reading

  Item 7 from the minutes of the Municipal Council meeting of 1 December. Draft financial statements for the municipal fund and its enterprises for the years 2012-2015 were presented.$line$ The Education Committee's decision on the education plan and proposed fee schedules was presented. $line$ The Family Council's decision on the family services plan and its fee schedules was also presented. $line$ The Town Council refers the draft financial plan for 2012-2015, together with the proposals for service charges, to the first reading in the Town Council.

  Guðmundur Rúnar Árnason, the mayor, took the floor.$line$$line$Rósa Guðbjartsdóttir left the meeting at 17:30.$line$$line$Valdimar Svavarsson took the floor.$line$$line$The Hafnarfjörður Town Council approved, by 10 unanimous votes, to refer the draft financial plan for 2012-2015, together with the proposals for the service charges, to a second reading in the Town Council.