Town Council

General presentations

• SB040377 – Minutes of the Planning and Building Officer

  Minutes from the planning and building officer's disposal meetings of 11.05.11 and 18.05.11 were presented. Item A was disposed of by the building officer in accordance with the Building Regulations Act No. 160/2010. Submitted.

  ;

• 1105280 – Miðvangur 116 and 118, planning permission and plot enlargement

  Item 10 from the minutes of the BÆJH meeting of 26th May. The outcome of the planning and building officer's processing meeting of 20th May was presented, in which the part of the application relating to the plot extension is referred to the town council.$line$ $line$Beyjarstjórn leggur til við bæjarstjórn:$line$“Hafnarfjörður Town Council approves the extension of plot number 116 Miðvangur by 256 m² and plot number 118 Miðvangur by 114 m², and instructs the Property Register to finalise the matter.“$line$ $line$

  The town council approved the proposed motion by 11 unanimous votes.;

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

  Minutes of the Family Council from 25 May. Minutes of the Sports and Leisure Committee from 17 May. Minutes of the Executive Committee from 25 May. Minutes of the Education Committee from 23 May. and 26th May. Minutes of the Municipal Council from 26th May. Minutes of the Harbour Board from 24 May 2018.b. Minutes of the Culture and Tourism Committee from 18 May 2018.c. Minutes of the Hafnarborg Board from 24 May. Minutes of the Planning and Building Committee from 24 May. Minutes of the Environment Committee/Local Agenda 21 from 17 May.

  Kristinn Andersen spoke under item 1 – youth centre and all-day school – in the minutes of the Education Committee from 26th. May. Guðrún Ágústa Guðmundsdóttir replied. Kristinn Andersen responded to the reply. Helga Ingólfsdóttir spoke under item 1 – The Work Club – of the Family Council's minutes of 25 May. Gunnar Axel Axelsson replied. Rósa Guðbjartsdóttir spoke under item 1 of the Family Council's minutes from 25 May and item 8 – Hjallabraut 55, change to the detailed plan - in the minutes of the Municipal Council from 26 May. Guðmundur Rúnar Árnason, the Mayor, spoke under the same item in the council's minutes. Rósa Guðbjartsdóttir made a point of order. Guðmundur Rúnar Árnason responded to the point of order. Rósa Guðbjartsdóttir made a point of order for a second time. Guðmundur Rúnar Árnason replied to the intervention for a second time. Helga Ingólfsdóttir intervened in response to Guðmundur Rúnar Árnason's previous speech. Guðmundur Rúnar Árnason replied to the intervention. Helga Ingólfsdóttir made a second intervention. First Vice-Chair, Valdimar Svavarsson, took the chair. Sigríður Björk Jónsdóttir made an intervention regarding the previous speech by Guðmundur Rúnar Árnason. The Chair took over the chairmanship again. Eyjólfur Sæmundsson spoke under the aforementioned item in the minutes of the Town Council. Helga Ingólfsdóttir made a point of order. Eyjólfur Sæmundsson responded to the point of order. Helga Ingólfsdóttir made a point of order for a second time. Eyjólfur Sæmundsson replied to the second interruption. Gunnar Axel Axelsson made a point of order regarding Eyjólfur Sæmundsson's previous speech. Rósa Guðbjartsdóttir spoke on the same item. Guðmundur Rúnar Árnason, the Mayor, made a point of order. Rósa Guðbjartsdóttir replied to an intervention. Margrét Gauja Magnúsdóttir spoke under the same item. Rósa Guðbjartsdóttir intervened. Margrét Gauja Magnúsdóttir replied to an intervention. Rósa Guðbjartsdóttir intervened for a second time. First Vice-Chair, Valdimar Svavarsson, took over the chair. Margrét Gauja Magnúsdóttir made a brief comment. Rósa Guðbjartsdóttir made a brief comment. Sigríður Björk Jónsdóttir made a response to a previous speech by Rósa Guðbjartsdóttir. Rósa Guðbjartsdóttir replied to the intervention. Kristinn Andersen left the meeting at 15:42. He was replaced by Ólafur Ingi Tómasson. The Chair resumed the chair. Eyjólfur Sæmundsson made an intervention regarding Rósa Guðbjartsdóttir's previous speech. Rósa Guðbjartsdóttir replied to the point of order. Eyjólfur Sæmundsson spoke in rebuttal for a second time. Rósa Guðbjartsdóttir replied to the point of order for a second time. Geir Jónsson spoke under item 1 of the minutes of the Education Committee from 26th May. Deputy Chairperson, Valdimar Svavarsson, took the chair. Gunnar Axel Axelsson made a point of order. Ólafur Ingi Tómasson spoke under the item 'Grants' in the minutes of the Town Council from 26th May. Guðrún Ágústa Guðmundsdóttir made a point of order. Ólafur Ingi Tómasson replied to the intervention. Guðrún Ágústa Guðmundsdóttir intervened for a second time. The Chair took the chair again. Gunnar Axel Axelsson intervened in Ólafur Ingi Tómasson's previous speech.  Margrét Gauja Magnúsdóttir made a point of order regarding the previous speech by Ólafur Ingi Tómasson.DIV>

  ;

• 11021352 – Annual accounts, audit 2010 - second reading.

  Item 5 from the minutes of the BÆJH meeting of 11 May. The annual accounts for 2010 for the municipal fund of Hafnarfjörður and its institutions were presented. The Finance Director and Auðunn Guðjónsson from KPMG attended the meeting.$line$$line$Beyarstjórn refers the annual accounts of the City of Hafnarfjörður's municipal fund and its institutions to a first reading in the town council.$line$ $line$ Guðmundur Rúnar Árnason, the Mayor, spoke. Then Valdimar Svavarsson, Guðrún Ágústa Guðmundsdóttir. $line$ $line$ The Hafnarfjörður Town Council approved, by 11 unanimous votes, to refer the 2011 annual accounts to a second reading in the town council. $line$

  <D Then Valdimar Svavarsson, Guðrún Ágústa Guðmundsdóttir, Rósa Guðbjartsdóttir. Margrét Gauja Magnúsdóttir left the meeting at 17:35. Lúðvík Geirsson took her place. Gunnar Axel Axelsson took the floor. The second vice-chair, Guðrún Ágústa Guðmundsdóttir, took over the chair. Sigríður Björk Jónsdóttir took the floor. The Chair resumed the chair. Geir Jónsson spoke. Then Eyjólfur Sæmundsson. Rósa Guðbjartsdóttir intervened. Helga Ingólfsdóttir spoke. Then Lúðvík Geirsson. Rósa Guðbjartsdóttir intervened. Geir Jónsson came to reply to Lúðvík Geirsson's previous speech. Lúðvík Geirsson replied to the reply. Geir Jónsson came to reply a second time. Valdimar Svavarsson came to reply to Lúðvík Geirsson's previous speech. Helga Ingólfsdóttir made a point of order regarding the previous speech by Lúðvík Geirsson. Lúðvík Geirsson replied to the point of order. Ólafur Ingi Tómasson took the floor. Eyjólfur Sæmundsson made a point of order. Ólafur Ingi Tómasson replied to the point of order. Eyjólfur Sæmundsson made a second intervention. Guðrún Ágústa Guðmundsdóttir made an intervention regarding an earlier speech by Ólafur Ingi Tómasson. Ólafur Ingi Tómasson responded to the intervention. Guðrún Ágústa Guðmundsdóttir made a second intervention. Rósa Guðbjartsdóttir took the floor. Guðrún Ágústa Guðmundsdóttir made an intervention. Rósa Guðbjartsdóttir replied to the intervention. Guðrún Ágústa Guðmundsdóttir made a second intervention. Rósa Guðbjartsdóttir replied to the second intervention. Gunnar Axel Axelsson made an intervention regarding Rósa Guðbjartsdóttir's previous speech. Rósa Guðbjartsdóttir replied to the intervention. Gunnar Axel Axelsson made a second intervention. Rósa Guðbjartsdóttir replied to a second intervention. Guðmundur Rúnar Árnason, the mayor, took the floor. Rósa Guðbjartsdóttir made an intervention. Guðmundur Rúnar Árnason, the mayor, replied to an intervention. Eyjólfur Sæmundsson took the floor. Rósa Guðbjartsdóttir made a point of order. Eyjólfur Sæmundsson responded to the point of order. Rósa Guðbjartsdóttir made a second point of order. Eyjólfur Sæmundsson responded to the second point of order. Geir Jónsson made a point of order regarding Eyjólfur Sæmundsson's previous speech. Eyjólfur Sæmundsson replied to the point of order. The City Council of Hafnarfjörður approved the annual accounts (Section A) of the Main Fund, the annual accounts of the Property Fund and of GN-eignar ehf. with 6 votes in favour, 5 abstentions.
  The Hafnarfjörður Town Council approved the (B-section) annual accounts of Hafnarfjörður Harbour,
  the annual accounts of the Housing Office; the annual accounts of the Sewerage Company and the annual accounts of the Waterworks with 6 votes in favour, 5 abstentions.

  The Hafnarfjörður Town Council approved the combined annual accounts for Sections A and B with 6 votes in favour and 5 abstentions.

  Valdimar Svavarsson spoke and submitted the following statement on behalf of the representatives of the Independence Party:

  “An expensive overspend in an election year? 1000 million over budget.

  The annual accounts for 2010 are yet another example of the Social Democratic Party's poor financial management over the last 9 years. Deviations from the budget were significant, and operating cash flow was about 1 billion lower than forecast. 1 billion would be most welcome in the town's coffers right now, when 4.3 billion is in arrears, there is uncertainty about a further 7 billion, and negotiations are underway to refinance these loans.In the 2010 budget, cost savings were planned across most areas of the council, not least in education. Instead of a modest cut in education, the year ended with overspending the budget by 823 million. The main difference was the unspecified cost-saving measures that were never implemented. Was this a coincidence, or was it because the Social Democratic Alliance did not dare to take difficult measures before the election? If so, the election was very expensive for the people of Hafnarfjörður.

  Under the heading of education, it can be seen that both primary schools and nurseries significantly exceed their budgets, but there are numerous schools and nurseries that are keeping to the plan, and this is an example for other institutions to follow.

  Independent members of the town council pointed out right at the start of the term that things were heading for trouble, but the majority refused to listen, as so often before, and failed to address the issues before the new school year, which likely means that little will be addressed until the end of this school year at the earliest.

  800 million corresponds to the wages of 1500-1800 young people for the whole summer.

  800 million is equivalent to the running costs of eight nurseries.

  800 million is the equivalent of all council employees receiving a 1.21% pay rise.

  The majority had the opportunity to show investors and banks that the problem could be tackled and that there was a genuine will to do so. It is precisely the case, as the Independence Party has often pointed out in recent months, that it is actions that matter. Not Excel spreadsheets or fine promises.

  Wages and salary-related costs are nearly 1.1 billion over budget at the same time as the majority claims that measures have been taken to reduce wage costs, such as reducing overtime, reduced management and reduced job ratios.

  1100 million corresponds to the salaries of 200-250 employees

  1.1 billion corresponds to an overpayment of 171% in wages and related costs.

  The annual accounts show that the town's debt position is still well above the benchmark limits of the Financial Supervision Committee for local authorities, as debts are 278% of income. The annual accounts are also considerably different from the forecast that was used as a basis for the 2011-2014 budget. The difference is around 280 million, which could mean that the optimisation measures for 2011 will not be sufficient to achieve the set target of 1,660 million króna in operating cash flow. It has now been one year since the municipal elections. The Social Democrats and the Left-Green Movement in Hafnarfjörður have repeatedly squandered opportunities to achieve success in running the town and in ensuring success with the difficult tasks we face. 0cm 0cm 10pt“ class=MsoNormal>However, the most important issue for the municipality in the near future is to make the plans work and to refinance up to 11 billion in foreign loans that are due or are coming due. That is really the task at hand. We on the Independence Party want to assist in this matter and have put forward a number of proposals and ideas to help resolve it, but now the question is whether it will be enough.

  The responsibility for the difficult situation the municipality has found itself in, responsibility for the follow-up on the plan, and responsibility for the plan not having been met due to decision-making paralysis in the run-up to the 2010 local elections, lies entirely with the majority.“

  Valdimar Svavarsson (sign), Rósa Guðbjartsdóttir (sign), Ólafur Ingi Tómasson (sign),

  Geir Jónsson (sign), Helga Ingólfsdóttir (sign)

  Mayor, Guðmundur Rúnar Árnason, took the floor and submitted the following motion on behalf of the Social Democrats and the Left-Greens:

  <SPAN style=“FONT-FAMILY: “Arial“,“sans-serif“; FONT-SIZE: 12pt; mso-fareast-language: Since the economic crash in the autumn of 2008, work has been underway on a complete restructuring of the finances of the City of Hafnarfjörður. This restructuring has involved both responding to the direct consequences of the crash and laying the foundations for a sound financial position for the future.

  Since the crash, the income of the City of Hafnarfjörður has decreased significantly. At the same time, various cost-cutting measures have been very successful in offsetting this. Measures implemented last year are proving successful this year, and further extensive measures have been taken this year to reduce the council's operating costs.

  <SPAN style=“FONT-FAMILY: “Arial“,„sans-serif“; FONT-SIZE: 12pt; Operating result for Part A before financial items is a positive of just under 215 million króna, and positive by 466 million króna in Parts A and B. The A-part margin, or EBITDA, is 685 million króna, or 5.51%, and the margin for A and B parts is 1,488 million króna, or 10.91%.

  
  Operating cash flow in Segment A is approximately 321 million króna and in Segments A and B approximately 901 million króna, an increase of 215 million year-on-year.

  The fact that the budget was not reviewed during the year, as has been customary in Hafnarfjörður, as well as in other municipalities, means that deviations in various areas are greater than they would otherwise be.

  The main deviations in expenditure are due to circumstances beyond our control. Thus, expenditure on social services was approximately 140 million higher than had been anticipated. This is explained by m.a. due to increased maintenance costs and higher expenditure on housing benefit than the budget had provided for. Furthermore, expenditure on services for disabled people was higher than had been anticipated when the budget was approved.

  The largest variances were in the education sector, not least due to a planned adjustment that did not materialise. The largest single variance from the budget arose because the councils“ expectations of the Ministry of Education's permission for a temporary shortening of the school year were not met.

  Due to a unanimous decision by the town council, expenditure on youth summer jobs was approximately 75 million higher than originally estimated. Pension liabilities are considerably higher than had been anticipated. This includes, among other things, pension liabilities of approximately 113 million for former employees of the City of Hafnarfjörður, which had not been previously accounted for, now being transferred to the Nurses“ Pension Fund and the State Pension Fund.

  Some deviations are due to actions that were planned last year, including in personnel matters, which were not implemented, but have been put into effect this year.

  Debt and liabilities amounted to 37,830 million króna and decreased by 3,833 million króna during the year, or by 10.11%. Liabilities increased by 414 million króna during the year, new loans totalling 1,327 million króna were taken out, and repayments for the year amounted to 5,601 million króna. Shareholders“ equity for Part A amounted to approximately 5.9 million at year-end, and the equity ratio was 16.4%. The shareholders“ equity for Parts A and B at year-end amounted to 8,980 million króna. The equity ratio at the end of 2010 was 19.21% compared to 14.21% at the end of 2009.

  Total assets of the A and B parts amounted to 46,810 million kr. at year-end, down from 48,585 million kr., or by 1,775 million kr. Investing activities for the year amounted to 1,358 million króna, but in accordance with changed accounting policies, leasehold land was revalued at 1,705 million króna and a bond issued by Orkuveita Reykjavíkur in the amount of 3,814 million króna. was sold to pay down debts.

  In addition to the assets on its balance sheet, the Municipality of Hafnarfjörður has ready-made industrial and residential plots worth almost 10 billion krónur. There lie enormous opportunities for debt repayment and a new offensive, as the nation's economic situation stabilises. &ampamp;lt;o:p>

  The results of recent years have been enormous. Debt per inhabitant in Hafnarfjörður almost doubled during the economic crash, from 735 thousand to 1,306 thousand. In 2009, the debt per capita was one million three hundred and thirty thousand. In 2010, the debt per capita fell to 1,153.000. By comparison, the debt per capita in Kópavogur is 1,255,000, in Reykjavík 2,417,000 and in Reykjanesbær 2,559,000.

  
  The projects ahead involve completing the municipality's refinancing and thereby strengthening its liquidity position. This project is now nearing completion, as Hafnarfjörður is working to refinance all of the municipality's loans with Depfa Bank, thereby reducing currency risk and refinancing needs for the coming years. After the refinancing, Hafnarfjörður's position will be fundamentally changed. Budgets for the coming years are prudent and based on the current economic climate. No growth in population or land sales is expected, so it is clear that as soon as the economy recovers, Hafnarfjörður's finances will improve very rapidly.

  In light of the fact that the budget is an important management tool in the operation of the municipality, a decision was taken not to revise the initial budget for 2010, in order, among other things, to highlight all deviations, to analyse them in detail and use them as a basis for further implementation of necessary changes in the preparation and execution of budgets, not least in light of the new Municipal Government Act currently before Parliament. In place of a revision, the 2010 budget and its development has been used to review the municipality's operations. An analysis of the operations of the educational institutions in Hafnarfjörður was carried out, as was a financial review assessing the financial position of the Borough of Hafnarfjörður and its institutions with regard to the borough's ability to meet its financial obligations. Work has been carried out on the municipality's credit rating in connection with the city's refinancing work, and a more in-depth administrative review has also been conducted on the structure and management of the municipality's support services.

  Through a concerted effort by the management and staff of Hafnarfjörður municipality, and with the widespread support of the town's residents, the situation that resulted from the economic collapse has been successfully reversed. This year, important steps have been taken to further strengthen that position. In recent years, there has been a huge investment in the community's infrastructure. It is not least for this reason that Hafnarfjörður has managed to weather the economic collapse and the municipality is well-equipped for the challenges of the coming years, in harmony with its staff and residents.

  Guðmundur Rúnar Árnason (sign), Sigríður Björk Jónsdóttir (sign), Guðrún Ágústa Guðmundsdóttir (sign),

  Lúðvík Geirsson (sign), Gunnar Axel Axelsson (sign) and Eyjólfur Sæmundsson (sign).

  ;