The findings of reviews of the operations of the City of Hafnarfj\u00f6r\u00f0ur, which the consultancy firms Capacent and R3 have been working on for the past few months, are now available. The reports and recommendations for improvements have been published on the City of Hafnarfj\u00f6r\u00f0ur's website, in the spirit of open public administration towards its residents. The recommendations will be considered in the coming weeks and months within the town's administrative structure. <\/p>\n
The Hafnarfj\u00f6r\u00f0ur Town Council aims to halt the town's accumulation of debt and get the municipality's operations back on track. This will make it possible to provide residents of Hafnarfj\u00f6r\u00f0ur with favourable services and strengthen the town's competitive position within the capital region.<\/p>\n
The proposals from the consultancy firms suggest that the potential changes could ease the town's operations by up to 900 million kr\u00f3na on an annual basis, if they were all to be implemented. It is realistic to assume that after the proposals have been processed in the coming months, the benefit to the town's coffers will amount to between 500 and 600 million kroner.<\/p>\n
The proposals do not involve cutting services for residents, but rather aim to achieve greater efficiency from the council's current operations. Various straightforward improvements are also proposed, such as the council making greater use of tendering procedures to reduce the cost of purchasing services.<\/p>\n
\u201eIt is extremely important to have undertaken this work to analyse the situation in the town and to receive recommendations for improvements from an external party,\u201d says Mayor Haraldur L. Haraldsson. \u201eIt is quite clear that we can make changes to our operations and thus achieve significant improvements, which can then be used to make life easier for the residents, so to speak, which is one of our main goals. We hope to reach a good consensus on this.\u201d<\/p>\n
Further details on the main aspects of the operating analysis<\/strong><\/p>\n A new analysis in a Capacent report on the financial position of the City of Hafnarfj\u00f6r\u00f0ur confirms other analyses of the city's serious situation. It states that operating surplus is too low to pay off debts and that there is little scope for tax increases. \n<\/p>\n In 2014, the debt ratio of the Municipality of Hafnarfj\u00f6r\u00f0ur (Sections A and B) was 202%, but it was highest in 2011 when it stood at 250%. Looking at Part A only, the council's debt ratio was 185%, with the highest figure in 2012 when it was 222%.\n<\/p>\n Whether looking at Area A or Areas A and B of the municipality, the debt ratio based on the municipal debt criteria is still above the benchmark limits set out in the regulations on municipal finance.\n<\/p>\n Based on the assumptions given in the debt criteria, the debt ratio for Hafnarfj\u00f6r\u00f0ur was 157% in Section A and 176% in Sections A and B, whereas the debt criteria stipulate that Sections A and B should not exceed 150 %. A high debt ratio and low margin mean that, as things stand, the municipality's debts will not be repaid. <\/p>\n Review of the town's operations and governance. \u2013 Analysis and recommendations.<\/a> \n<\/p>\n