Budget for 2025 approved by the town council
A new six-class nursery school will be opened in Hamranes in 2025, along with a new sports hall at Ásvellir and an equestrian hall on the grounds of the Sörli riding club. These are among the projects included in the newly approved 2025 budget. The focus, however, remains on core services.
Operating surplus and a long way from the debt ratio
The budget for the Municipality of Hafnarfjörður provides for a surplus of 1.01 billion krónur in the A and B sections of the municipality next year. The budget was approved by the town council last night. It states that investments totalling 9.7 billion króna will be made. The largest sum is intended for the planned purchase of the Skessan football hall, owned by FH.
„The financial position of the Municipality of Hafnarfjörður is good and we are proud of the success achieved in recent years,“ says Rósa Guðbjartsdóttir, the mayor.
A new six-class nursery school will be opened in Hamranes in 2025, along with a new sports hall at Ásvellir and a riding arena on the grounds of the Sörli equestrian club. A central library and a residential hub are also in the pipeline. These are among the main projects featured in the newly approved 2025 budget. The focus, however, remains on core services.
The debt ratio will be 92.5%
Operations of Section A are projected to be positive by approximately 45 million króna in 2025, according to the forecast. Operating cash flow is expected to be 5.4% of total revenue, or 2,834 million króna. The municipality's debt ratio is projected to be 92.5% at the end of 2025, which is well below the 150% debt ratio required by the regulations on financial benchmarks and supervision of municipal finances. The council tax rate will remain unchanged year-on-year at 14.93%. The rate of property tax will also remain unchanged year-on-year, as will the tax rate on business premises.
„Keeping the property tax rate the same year-on-year means that these taxes will, on average, fall in real terms,“ says Rósa. „The running of local authorities becomes more difficult with each passing year, partly because local authorities have taken on increased social services without corresponding funding from the government. I therefore look back with pride on the operational success of the City of Hafnarfjörður in recent years, while also emphasising the urgent need to rectify this discrepancy as soon as possible.“
About 32,000 inhabitants
Hafnarfjörður is the third largest municipality in the country with just over 32,000 inhabitants. Total estimated expenditure amounts to approximately 47.0 billion króna, with estimated payroll costs of 25.6 billion króna and estimated financing costs of 2.4 billion króna.
Key figures from the 2025 budget
- Operating profit of A and B sections positive at 1,010 million króna
- Operating result of Section A positive at approximately 45 million kroner
- Debt ratio estimated at 92.51% at the end of 2025
- Estimated operating cash flow from A- and B-sections of 2,834 million króna, or 5.41 TP3T of total revenue
- Council tax percentage remains at 14.931%
- The property tax rate will remain unchanged year-on-year, and property taxes are expected to fall in real terms on average.
- A general increase in the tariff of 3.91% is expected to cover price and wage increases.
- Planned investments amount to almost 9.7 billion krónur, of which funds have been set aside for planned agreements to purchase the Skessan sports hall.
The budget for the City of Hafnarfjörður was presented for its second reading and approved at a meeting of the City Council of Hafnarfjörður on Thursday, 12 December 2024. The budget covers the coming year, as well as a three-year plan for 2026-2028.