Responsible financial management and a sound financial position

The annual accounts of Hafnarfjörður for the year 2019:

Responsible financial management and a sound financial position

• Operating surplus
  amounting to 1.236 million króna for A and B parts of the municipal fund
• The debt ratio remained
  unchanged 112% year-on-year
• Working capital from
  Operating profit was approximately 3.4 billion króna, or 11.91% of total revenue.
• Investments
  amounting to 4.6 billion krónur in the year

Annual accounts
The 2019 budget for the City of Hafnarfjörður was presented to the town council today. Despite
Due to significant investments and infrastructure development,
The operating result was positive and above forecasts.

See item 2 in the minutes of the town council

Leftover
Operations of parts A and B of the municipal fund amounted to 1,236 million kroner, but the budget with
The supplementary budget provided for a surplus of 642 million krónur. Section A of the municipal fund showed
A surplus of 426 million krónur, whereas the plan had anticipated a deficit of 45 million.
crown. The difference between the estimate and the result can be attributed, among other things, to the fact that
The charge for pension fund liabilities was 392 million krónur lower than forecast.
had been provided for, in addition to which the capital items amounted to 245 million króna
lower due to a lower inflation component. Tax revenues, however, were 94 million
a króna lower than the budget had provided for and contributions from the Municipal Equalisation Fund were
46 million below plan. Operating cash flow amounted to 3,396 million króna or
11.91% of total revenue.

„We have taken cautious and responsible steps in
the operation of the municipality. The results of the 2019 annual accounts are in line with
our plans and are consistent with the objectives of responsible financial management and well
well-considered decisions“ says Rósa Guðbjartsdóttir, Mayor of Hafnarfjörður.
The Covid-19 action plan was unanimously approved by the town council at the beginning of April. „I am convinced that the sound operation of the last
that years of solidarity and unity among the management and staff will benefit the municipality
through the hardships that the Covid-19 pandemic entails. Emphasis will be
to provide a financial injection to those places that get the wheels of industry turning and
The economy is on the move again. We therefore intend to accelerate projects and refurbishments,
Prioritise projects based on revised criteria and increase employment opportunities. Obviously
are the assumptions of the 2020 budget largely broken and it is clear that the plans
will undergo significant changes in the coming weeks and months. Council tax revenues will
Cuts are being made, deadlines are being pushed back and expenditure is increasing. This will be a major challenge.
which will have a significant impact on the council's operations. But we have both the capacity
and the ability to minimise negative impacts on services for residents and development
infrastructure.”

Investments and development

Investments
In 2019, they amounted to 4,557 million króna. Among the main projects were
Ongoing construction of a new school in Skarðshlíð, due for completion in autumn 2020 for
1.258 million króna, construction of a nursing home for 855 million króna and
Construction of sports facilities at Ásvellir, Kaplakriki and at Keili for
in total, around 656 million króna. Construction on primary and nursery schools amounted to around 167
millions of kroner and renovations at St. Joseph's Hospital of around 85 million kroner. Then amounted
purchase price of flats from the Housing Office of approximately 243 million kroner. Construction of
Road construction and harbour works cost 1,010 million króna but revenue from
The cost of road construction and building rights amounted to approximately 740 million króna.

Unchanged debt ratio

Repayments
Long-term debt amounted to a total of about 1.5 billion krónur in the past year. Loans were taken
new loans during the year totalling 1.1 billion króna. In addition,
Loans taken on the basis of a lease agreement with the Treasury amounting to 600 million
Króna and 495 million krónur for the financing of investments by the Housing Office
on rental properties. The debt ratio of Hafnarfjörður municipality was 112% at the end of 2019, but that
remained unchanged year-on-year and is well below the 150% debt ratio according to the regulation
on financial benchmarks and oversight of municipal finances. Total debts and liabilities amounted to
amounted to 45,300 million króna, an increase of 2,109 million króna year-on-year. Total assets
At the end of the year, the total amounted to 59,536 million kroner and increased by 3,566 million between
years old.

Annual accounts
The 2019 Hafnarfjörður City Guide can be accessed HERE.

Annual and half-yearly accounts for previous years can be accessed HERE.