Operating surplus increases year on year

The proposal for the 2025 budget was presented to the Hafnarfjörður Town Council for its first reading today, Wednesday, 6 November. The projected operating surplus for the municipality's A and B sections amounts to 1,246 million króna in 2025. Operating cash flow is projected to be 5.91% of total revenues, or 3,111 million króna. The forecast is for the A-section's operating surplus before depreciation and financial items to be positive at 3,564 million króna, and for the A-section's result to be a positive 314 million króna. Total revenues for Sections A and B are projected to be around 52.7 billion króna in 2025, and projected operating expenses before financial items are around 47.1 billion króna. The financial position of the Municipality of Hafnarfjörður is sound, and the debt ratio according to Regulation 520/2012 is estimated at 89% at the end of next year. The council tax rate for 2025 will remain at 14.931%, and the rate for property tax and related charges will remain unchanged from the previous year.

„The operation of the Hafnarfjörður municipal fund continues to strengthen, and it is positive that an increased operating surplus is expected next year.“ says Rósa Guðbjartsdóttir, the mayor. „Following a strong period of residential and commercial property development in recent years, high interest rates temporarily slowed the pace of land allocations and construction activity during the current financial year. With falling inflation and interest rates, we anticipate a renewed increase in activity in the coming years. In a period of significant infrastructure development, it is important to keep borrowing to a minimum and debt ratios moderate. In recent years, the operations of local authorities have suffered from the fact that increased service demands have not been accompanied by the revenue streams to fund them. It is important that this is addressed by the government, but the ambition of the City of Hafnarfjörður is to continue providing residents with the excellent service they have been accustomed to.“

Work will begin on building a school in the new housing development in Hamranes, and at the same time, improvements and development will be carried out on schools and school grounds throughout the municipality. The finishing touches will be put to new housing developments across the town, including the tarmacking, construction of pavements, paths, play areas and the general greening of spaces. Work will also be carried out on the refurbishment of footpaths in older neighbourhoods, including the maintenance and finishing of pavements. Work will continue on the development of sustainable transport, such as footpaths and cycle paths, with an emphasis also placed on road safety. Furthermore, an emphasis will be placed on encouraging the development of electric charging points in the town's neighbourhoods. A new six-form entry nursery school will be opened in Hamranes at the start of the year. A central library and a residential hub are also under construction. A new sports hall at Ásvellir will be opened during the year, as will a riding arena on the grounds of the Sörli riding club. The refurbishment of the South Town Pool will continue with improved changing facilities. Funding is provided for further preparatory work on the future development of the Technical College on the harbour area. Finally, it is planned to increase efficiency and improve lighting in the buildings and grounds of the city's institutions with LED lighting, among numerous other projects. Work will continue to ensure the capacity of the sewerage and water supply systems, and the reliability of the water supply.

The budget for the City of Hafnarfjörður is presented for first reading at the meeting of the City Council of Hafnarfjörður on 6 November 2024. The budget covers the coming year, as well as a three-year plan for 2026-2028. The second reading and final adoption of the budget in the City Council is scheduled for Tuesday, 3 December 2024.