The annual accounts of the Municipality of Hafnarfj\u00f6r\u00f0ur were approved at a meeting that has just concluded.\n<\/p>\n
The 2014 annual report for the Municipality of Hafnarfj\u00f6r\u00f0ur shows that the municipality's financial position remains difficult and that it is important to reduce expenditure and pay down debt. The operating result for the year, for both A and B sections, was a surplus of only 76 million kr\u00f3na, which is not in line with the adjustment plan made under an agreement with the supervisory board for municipal finances. This could have the effect of a temporary rise in interest rates, as operating cash flow does not meet the benchmarks set as a condition in the agreements for refinancing foreign loans.\u00a0 The operating result for Section A was a deficit of 492 million kr\u00f3na. This compares with a budgeted surplus of 216 million kr\u00f3na.<\/p>\n
The operating result for the year was a surplus of approximately 76 million kr\u00f3na, whereas the budget had provided for an operating surplus of 619 million. This variance is mainly attributable to an increase in the council's pension liability of 928 million kroner, which is 515 million over budget.\u00a0 Consultancy and borrowing costs for refinancing, totalling 156 million kr\u00f3na, which were not included in the plans, also affect the result.<\/p>\n
Exceptional items are charges arising from the outcome of the Supreme Court's judgment of 5th March. March 2015 that the municipality is liable to pay the state corporation tax of 15% instead of the 10% previously forecast in the municipality's accounts, as well as interest on the sale of a stake in HS Orka hf. in 2008, amounting to 333 million kr\u00f3na.<\/p>\n
Revenues amounted to 19,648 million kr\u00f3na, which is 418 million kr\u00f3na above the forecast. Wages and salaries are the municipality's largest expenditure item, amounting to 9,985 million kr\u00f3na, which is 442 million kr\u00f3na higher than forecast. Other expenses were 7,163 million kr\u00f3na, which is 230 million kr\u00f3na above the budget. Profit before finance and exceptional items amounted to 1,634 million kr\u00f3na. Financing items amounted to 1,226 million kr\u00f3na, which is 67 million above the forecast. Net operating working capital amounted to approximately 1,593 million kr\u00f3na, which is 478 million lower than forecast.<\/p>\n
The running of the departments went well and was in line with the plan. The heads of the institutions deserve praise for their success in keeping to the budgets. The largest department is education and childcare, to which approximately 8,748 million kr\u00f3nur were allocated. Around 2,637 million kr\u00f3na was allocated to social services and 1,599 million kr\u00f3na to youth and sports affairs.\u00a0Total assets at the end of the year amounted to a total of 48,198 million kr\u00f3na, having decreased by 285 million year-on-year, and total liabilities and obligations amounted to 39,766 million kr\u00f3na.<\/p>\n
The auditors of the town's accounts draw special attention to the council's current ratio and debt position, and it is important to take these recommendations seriously. The negative operating result of the municipal treasury's A-section, amounting to 492 million kr\u00f3na, and the current ratio of 0.23% are unacceptable. Furthermore, interest expenses are a significant burden, amounting to 6.2% of the municipality's revenue, or around 1.2 billion kr\u00f3nur, which is an extremely high proportion.<\/p>\n
<\/p>\n
The majority of the Independence and Bright Future parties believe that the foundations are in place to turn the city's finances around for the better, provided that matters are handled correctly and dealt with responsibly and decisively.\u00a0Among other things, it is important to strengthen the foundations, attract businesses and residents to increase activity and thereby the town's revenues. However, the biggest challenge in the management of the municipality in the near future will be to get a better grip on expenditure and debt repayment. It is hoped that the operational review of the town's institutions and the subsequent recommendations will have a positive impact on the financial position of the Borough of Hafnarfj\u00f6r\u00f0ur for the future. It is important to create room for a reduction in council charges and fees, to maintain or increase services, and to begin development using own funds for the benefit of all residents.<\/p>","protected":false},"excerpt":{"rendered":"
\u00c1rsreikningur Hafnarfjar\u00f0arb\u00e6jar var sam\u00feykktur \u00e1 fundi sem n\u00fa var a\u00f0 lj\u00faka. \u00c1rsreikningur Hafnarfjar\u00f0arb\u00e6jar fyrir \u00e1ri\u00f0 2014 s\u00fdnir a\u00f0 fj\u00e1rhagssta\u00f0a sveitarf\u00e9lagsins er \u00e1fram erfi\u00f0 og a\u00f0 mikilv\u00e6gt er a\u00f0 minnka \u00fatgj\u00f6ld og grei\u00f0a ni\u00f0ur skuldir. Rekstarni\u00f0ursta\u00f0a \u00e1rsins, A- og B-hluta, var j\u00e1kv\u00e6\u00f0 um einungis 76 millj\u00f3nir kr\u00f3na, sem er ekki \u00ed samr\u00e6mi vi\u00f0 a\u00f0l\u00f6gunar\u00e1\u00e6tlun sem ger\u00f0 […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_breakdance_hide_in_design_set":false,"_breakdance_tags":"","wds_primary_category":0,"footnotes":""},"categories":[12],"tags":[],"class_list":["post-12673","post","type-post","status-publish","format-standard","hentry","category-frettir"],"acf":[],"_links":{"self":[{"href":"https:\/\/hafnarfjordur.is\/en\/wp-json\/wp\/v2\/posts\/12673","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/hafnarfjordur.is\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/hafnarfjordur.is\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/hafnarfjordur.is\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/hafnarfjordur.is\/en\/wp-json\/wp\/v2\/comments?post=12673"}],"version-history":[{"count":0,"href":"https:\/\/hafnarfjordur.is\/en\/wp-json\/wp\/v2\/posts\/12673\/revisions"}],"wp:attachment":[{"href":"https:\/\/hafnarfjordur.is\/en\/wp-json\/wp\/v2\/media?parent=12673"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hafnarfjordur.is\/en\/wp-json\/wp\/v2\/categories?post=12673"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hafnarfjordur.is\/en\/wp-json\/wp\/v2\/tags?post=12673"}],"curies":[{"name":"WordPress","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}