Reliable operation and stability

Hafnarfjörður's 2026 Budget

The draft budget for 2026 was presented to the Hafnarfjörður Town Council for its first reading today, Wednesday, 5 November 2025. The projected operating surplus for the municipality's A and B sections amounts to 2,144 million krónur in 2026. Operating cash flow is projected to be 7.31% of total revenues, or 4,165 million krónur.

The plan provides for the A-section's operating surplus before depreciation and finance charges to be a positive 4,837 million króna. The estimated A-section operating surplus is 1,051 million króna.

Total revenues for Sections A and B are projected to be around 57.4 billion króna in 2026, and operating expenses before financial items are projected to be around 50.4 billion króna. Total assets are projected to amount to approximately 113 billion króna at the end of next year, with an equity ratio of 34.3%. The debt ratio according to Regulation 520/2012 is projected to be 90.6% at the end of next year. The tax rate for the year 2026 will remain at 14.93%, but the property tax rate on residential and commercial property will decrease year-on-year.

Key figures from the 2026 budget

• Operating result of A and B sections positive at 2,144 million króna
• Operating result of Section A positive at 1,051 million króna
• A- and B-part debt ratio estimated at around 90.61% at the end of 2026
• Projected operating cash flow from A and B sections of 4.165 million króna, or 7.31 TP3T of total revenue.
• Council tax percentage remains at 14.931%
• The property tax rate will be lowered to offset higher property valuations, so that the change in rates for residential and commercial property will, on average, be below inflation.
• Estimated investments in Parts A and B amount to approximately 10.5 billion króna.

„Responsible financial management has resulted in a solid operating performance for the Municipality of Hafnarfjörður for another year, despite various external challenges,“ says Valdimar Víðisson, the Mayor. „For the coming year, a modest surplus is expected in the operating accounts of the A-section of the municipal budget and for the group as a whole. The emphasis is on excellent services for residents, a beautiful environment and a vibrant community life. Extensive investments in schools, sports facilities, road infrastructure and residential areas are in their final stages or have already been implemented. A targeted development of residential and commercial property has taken place, and it is expected that even greater momentum will be unleashed with the easing of inflation and a fall in interest rates. Hafnarfjörður will then be well-positioned, with excellent opportunities for business, diverse housing options, moderate taxes, a high standard of services, and a vibrant and attractive community.“      

Key projects for 2026

The budget for capital expenditure in 2026 is approximately 10.5 billion króna. The budget places emphasis on prioritising core services, such as education, the environment, transport, sports facilities, and housing and utilities. Increased funding will be allocated to planning, which is a prerequisite for continued development.

Road construction in Ásland 4 will be completed, and road construction will begin in a new industrial estate in Hellnahraun 4 and a residential area in Þorlákstún. Work will continue on the construction of a school in Hamranes, and at the same time, improvements and development will be carried out on schools and school grounds throughout the municipality. Work will continue on the finishing touches to new housing developments throughout the town, including tarmacking, the construction of pavements, paths and play areas, as well as the general greening of areas. In addition, walking routes in older neighbourhoods will be refurbished through the maintenance and improvement of pavements. Work will continue on the development of sustainable transport, such as footpaths and cycle paths, and emphasis will be placed on traffic safety. Construction is underway on a new library in the town centre and a residential hub, and the finishing touches will be put on the Haukar football pavilion and the Sörli riding hall. The refurbishment of the South Bay Pool will continue with improved changing facilities. Work will continue to ensure the capacity of the sewerage and water supply systems, and the reliability of the water supply.

Budget processing

The budget for the City of Hafnarfjörður is presented for its first reading at a meeting of the City Council on 5 November 2025. The budget covers the coming year, as well as a three-year plan for 2027-2029. The second reading and final adoption of the budget in the City Council is scheduled for Wednesday, 3 December 2025.