Strong financial position of the City of Hafnarfjörður
The operating surplus of Sections A and B amounted to 1,326 million.
króna. No loans were taken out in 2017. All of the year's projects were
Financed with equity. Debt ratio well below the benchmark.
supervisory board
The financial position of the City of Hafnarfjörður has strengthened.
significantly in recent years. This strengthening is clearly reflected in the annual accounts.
of the municipality for the year 2017. The operating surplus for A and B sections amounted to
With operating cash flow of 3,646 million króna, net profit was 1.326 million króna, which
equates to 14.41 TP3T of total revenue. This good performance has led to the fact that
The municipality took out no loans in 2017, which is the second year in a row.
Long-term debt was reduced by 300 million krónur, exceeding the amount due.
payments during the year. Construction is underway on a new primary, nursery and
music school in Skarðshlíð, new training and teaching premises for Haukar, new
nursing home at Sólvang, etc. All the year's projects were
financed with equity. The debt ratio has come down to 135% and
The debt ratio in 159% for A and B parts.
„Operating performance
The town's performance exceeded the brightest hopes, but for the second year in a row there were no new loans.
taken and continued to pay down debts. Then all the year's work was
financed with equity. If we continue on the same path, the future looks bright.
in Hafnarfjörður,“ says Rósa Guðbjartsdóttir, chair of the town council
Hafnarfjörður.
The operating result for the year for A and B sections was a surplus of
1.326 million króna, whereas the plan had provided for an operating surplus of 554
millions of kroner. The operating result for the year for Section A was a surplus of 740
millions of kroner but the plan provided for an operating surplus of 45
millions of kroner.
„Debt ratio
Hafnarfjörður has now been reduced to 135%, which shows that the finances
The municipality's position has strengthened considerably in recent years. It is also pleasing to see
how much the city's capital cost decreases year on year, and it is important that this
development should continue, as the townspeople's money is better spent in most other ways.
but in interest charges. This good operating result follows a thorough
restructuring of the operations and shows that with prudence, discipline and sensible
Financial management, it is possible to improve services for residents at the same time as the finances
The town's is greatly strengthened.“ Adds Rósa.
The main deviations were that tax revenues were 477 million króna
Higher than forecast, equalisation fund contributions were 309 million króna.
Over-budget and other income were 321 million króna over budget. In addition
was recognised as income from sold plots of land, amounting to approximately 336 million króna. A change in
The pension liability was 1.047 billion krónur higher than forecast.
before, the main difference was a 677 million króna charge for a settlement with
Brú Pension Fund due to Act no. 127/2016. Wages and wage-related contributions were on
planned and other operating costs were 184 million krónur higher than planned
advice. Capital items were about 580 million krónur lower than the budget had
budgeted for lower inflation and debt repayment. The running of the departments was
in accordance with the budget. Operating cash flow amounted to 3,646 million króna or
14.41% of total revenue.
Payments on long-term debt totalled 1.6 billion króna or
Around 300 million króna in excess of repayments under loan agreements. No new loans
were taken in the year for the second year in a row. The financial position of the City of Hafnarfjörður has therefore
strengthened further during the year and the debt ratio at the end of 2017 has reached 135% and is
well below the 150% leverage ratio under the regulation on financial benchmarks and
Supervision of the finances of local authorities.
Investments in the year 2017 amounted to 3,305 million króna but
The plan provided for 3,816 million króna. Among the main projects were
Construction of a new school in Skarðshlíð 466 million króna, construction of a nursing home
511 million króna and the construction of training and teaching premises at Ásvellir 241
millions of kroner. The purchase price of social housing amounted to 257 million kroner, the purchase of
The premises of the tax office, intended for the use of the Social Services, amounted to 259.
millions of kroner and the purchase of St. Joseph's Hospital amounted to 106 million kroner.
Road construction amounted to 1,343 million króna, but revenue from
Road construction charges and building rights amounted to 1,415 million króna. Road construction charges
authorised to reduce the implementation costs by up to 1.079 million until the work is completed
Krona, but road construction charges amounted to 336 million krona.
Total assets at the end of the year amounted to a total of 51,173 million króna.
and have they increased by 2,871 million between years. Total liabilities and
Liabilities totalled 40,187 million króna and have increased by 1,030
millions of kroner between. Long-term debt decreased by 1,203 million kroner,
The pension liability increased by 988 million króna and short-term debt increased.
approximately 1.283 billion króna, of which the main difference is a settlement with the Brú Pension Fund.
amounted to 677 million króna and an increase in creditors due to construction contracts of 364
millions of kroner.
The population of Hafnarfjörður was 29,360 on 1 December 2017.
compared with 28,678 the previous year, which is a population increase of 682 or 2.41%.