Published for the town's operations

A projected surplus of 554 million krónur from operations, and the property tax is being reduced. 

The draft budget for the City of Hafnarfjörður for 2017 is now before the council. The 2016 operations and the 2017 budget clearly reflect the priorities of the Hafnarfjörður town council to increase services, reduce the burden on residents, pay down debt and invest more with own funds.

Key findings of the 2017 budget

• The operating result of Sections A and B is a positive 554.4 million króna.
• The debt ratio is 141.41% and will be 150.91% at the end of 2016 according to the forecast, and was 170.1% at the end of 2015.
• Projected operating cash flow from the A-section is approximately 2.4 billion króna and 3.4 billion króna for the combined A- and B-sections, which is about 14.31% of total revenue.
• Council tax rate falls from 14.521% to 14.481%, not at its highest for years.
• The percentage rate of property tax, sewerage and water charges decreases year-on-year for residential properties.
• Nursery fees will remain unchanged for the fourth year in a row.
• Estimated sale of plots in Skarðshlíð for 1 billion and sale of industrial plots for 200 million.
• Total planned investments amounting to 3,366 million króna
• Purchase of social housing for around 200 million króna

See the 2017 budget 

See the report on the 2017 budget

See tables with the key findings of the 2017 budget and a year-on-year comparison.

Increased services and less burden on residents

The 2017 budget provides for the council tax rate to be lowered from 14.52%, the maximum allowable rate, to 14.48%. Furthermore, the tax rate for property tax and sewerage and water charges is expected to decrease year-on-year for residential properties, so that the charge in krónur will remain almost unchanged or decrease slightly, despite a significant increase in property valuation. In general, changes to the tariff for 2017 are expected in line with the projected indexation of 3.91%, but for the fourth consecutive year, nursery fees will remain the same. These are measures aimed at reducing the burden on residents, despite general price increases. The budget also provides for increased spending, amounting to approximately 390 million króna in total, above and beyond general price rises. This includes, among other things, increased funding for nursery and primary schools, family services, cultural affairs and environmental services.. „For the first time in at least 18 years, we are not at the maximum council tax. We will continue infrastructure investment into the new year. Three new social housing units are now in the procurement process, and a further 200 million is planned for social housing next year. A greater emphasis will be placed on vocational education and innovation in the council's services, multiculturalism, improved educational attainment and early intervention, to name but a few. Maintenance has been lacking in recent years, and this year we will, among other things,. aIncrease maintenance funding for the town's buildings, roads and pavements, and improve snow clearance, gritting, sweeping, mowing and bed cleaning.“ says Haraldur L. Haraldsson, Mayor of Hafnarfjörður.

The 2016 forecast assumes a significant increase in operating cash flow.

Hafnarfjörður is the third largest municipality in the country with total expenditure of around 23.3 billion króna, an estimated wage bill of around 11.7 billion króna and an estimated financing cost of around 1.9 billion króna. According to the forecast, the debt ratio of Hafnarfjörður municipality will be 170% at the end of 2017, compared to 194% at the end of 2015 and 202% at the end of 2014.  The forecast assumes that the debt ratio will be 150.9% at the end of 2016. According to the 2017 budget, the debt ratio will be 141.4% at the end of that year. If the plan is followed, it is clear that the debt ratio will fall below the 150TP3T level in 2017.„Hafnarfjörður has been growing in many respects. We will most likely experience a positive operating result at the end of 2016, operating cash flow has increased significantly, no new loans have been taken out and we have started to finance projects from our own capital. We have focused on improving services to the community and want to do even better in the new year. Exciting things are happening in the town's tourism sector; there is significant development, the population is growing, and the diversity of businesses in the area is increasing.“ says Haraldur.

The council's operating loss in 2015 was substantial. The operating result for the first half of 2016 was a surplus of 483 million króna, or 349 million króna above budget, and according to the forecast, there is nothing to suggest that the operating result at the end of 2016 will not be positive, with a significant increase in current operating income.from operations is realised. Cost control and optimisation have created room for the municipality to undertake further projects in the new year. The municipality's nearly 1,800 employees play a major role in this. “It is thanks, in part, to the professional contribution of staff, the austerity measures of recent months, and the positivity and initiative of residents and businesses in the Hafnarfjörður community that the municipality is running so successfully. When everyone pulls together, the result is a success.“ Harald says at last.