{"id":13323,"date":"2017-04-11T00:00:00","date_gmt":"2017-04-11T00:00:00","guid":{"rendered":"https:\/\/hafnarfjordur.is\/timamot-i-fjarmalum-hafnarfjardarbaejar\/"},"modified":"2022-10-25T09:00:15","modified_gmt":"2022-10-25T09:00:15","slug":"timeline-of-the-finances-of-the-city-of-hafnarfjordur","status":"publish","type":"post","link":"https:\/\/hafnarfjordur.is\/en\/timamot-i-fjarmalum-hafnarfjardarbaejar\/","title":{"rendered":"A milestone in the finances of the City of Hafnarfj\u00f6r\u00f0ur"},"content":{"rendered":"<ul>\n<li>&nbsp;A complete turnaround has taken place in the operations of the City of Hafnarfj\u00f6r\u00f0ur \u2013 from a deficit to a surplus.<\/li>\n<li>Debt ratio falls below 150% \u2013 the town escapes financial supervision<\/li>\n<li>The debt ratio of Hafnarfj\u00f6r\u00f0ur was 169.61% at the end of 2016, compared to 194% at the end of 2015, and has not been lower for a quarter of a century, or since 1992.<\/li>\n<li>Operating costs almost unchanged year-on-year<\/li>\n<\/ul>\n<p><em><br \/>Hafnarfj\u00f6r\u00f0ur's debt ratio<br \/>\nhas not been lower since 1992 and no new loans were taken out in 2016 despite<br \/>\nfor investments, including in a new nursery. Operating result<br \/>\nthe municipality's is positive by 538 million kr\u00f3na, whereas the 2015 annual report<br \/>\nshowed an operating loss of 512 million kr\u00f3na. Changed prioritisation<br \/>\nand the optimisation following the 2015 operational review is delivering the expected results<br \/>\nand about discussing a milestone in the operations of the City of Hafnarfj\u00f6r\u00f0ur. &nbsp;<\/em><\/p>\n<p>Annual accounts<br \/>\nThe 2016 budget for the City of Hafnarfj\u00f6r\u00f0ur was presented to the Hafnarfj\u00f6r\u00f0ur City Council today.<em> <\/em>The council's operating result<br \/>\nAccording to the annual accounts of Parts A and B, the surplus was approximately 538 million kr\u00f3na and A<br \/>\na positive part of approximately 27 million kr\u00f3na. The main<br \/>\nThe deviation is that tax revenues were 657 million kr\u00f3nur higher than forecast.<br \/>\nfor and an increase in pension liabilities of 776 million kr\u00f3nur above forecasts,<br \/>\nplus a 215 million kr\u00f3na increase which was carried under miscellaneous items.<br \/>\nCapital items are approximately 732 million kr\u00f3nur lower than the budget forecast.<br \/>\ndue to lower inflation and debt repayment. The running of the departments is in good<br \/>\nin line with the budget. There has been a significant turnaround in the operations and<br \/>\nOther operating costs remain almost unchanged from the previous year, at just over 7.4<br \/>\nbillions of kr\u00f3nur despite price increases. Tendering of certain service components<br \/>\nare, among other things, delivering these results. The municipality's equity at the end of 2016 amounted to 9,145 million kr\u00f3na in<br \/>\ncompared with 8,296 million at the end of 2015 and operating cash from operations A and B<br \/>\naccounting for 3.634 million kr\u00f3na or 15.71% of total revenue, compared to 953<br \/>\nmillions in 2015. The debt ratio is now 169.6% and has not been lower<br \/>\nsince 1992 when it was 163%. The highest was in 2009 at around 294%. No new loans<br \/>\nwere taken in the year 2016, and this is also the first time since at least 1992<br \/>\nwhen no new loans are taken out. Repayments totalling 2.1 billion were made.<br \/>\na kr\u00f3na, or approximately 870 million kr\u00f3nur, in excess of repayments under loan agreements. <em>\u201eThis annual report is in many ways historic<br \/>\nfor the municipality and a vivid example of the optimisation that is possible to achieve<br \/>\nin public administration. Professional preparation of actions and a concerted effort by all<br \/>\nStakeholder engagement is the key to success and now, two years after a thorough review<br \/>\nThe success of the measures has become very visible in the running of the local authority.\u201c <\/em>says<br \/>\nHaraldur L. Haraldsson, Mayor of Hafnarfj\u00f6r\u00f0ur. <em>Working capital from operations has increased by 2,681 million kr\u00f3na year-on-year and<br \/>\nGreat emphasis is placed on us continuing this journey. We have everything to<br \/>\nto be a role model in so many respects, both here in Hafnarfj\u00f6r\u00f0ur and beyond.\u201c<\/em><br \/>\nsays Haraldur.<\/p>\n<p>The financial position of the City of Hafnarfj\u00f6r\u00f0ur has strengthened significantly on<br \/>\nthe year and the debt ratio at the end of 2016 has come down to 148%, and is therefore below 150%<br \/>\ndebt ratio in accordance with the regulation on financial criteria and financial supervision<br \/>\nmunicipalities. Since 2012, the Municipality of Hafnarfj\u00f6r\u00f0ur has been under special monitoring.<br \/>\nof the supervisory board for municipal finances and in accordance with the adjustment programme was<br \/>\nIt is expected that this ratio would have fallen below 150% by the end of 2018. Better<br \/>\nmanaged to bring the proportion down, but the initial plan had provided for measures<br \/>\nThe coming months reflect continued responsibility and stability in operations.<br \/>\nof the municipality. Construction of a new school in Skar\u00f0shl\u00ed\u00f0 will begin in the coming<br \/>\nmonths which will be financed by the sale of blocks of flats, detached houses, terraced houses and<br \/>\nsemidetached house plots in the same area. Further<br \/>\nThe allocation of plots in Skar\u00f0shl\u00ed\u00f0 will take place shortly. Development of a new<br \/>\nThe nursing home has already left.<br \/>\nsite and there is demand for industrial plots at V\u00f6llum and at Hellnahraun,<br \/>\nKapelluhraun and Selhraun have been multiplying in recent months, in addition to which they are being<br \/>\nto explore where further possibilities and opportunities lie for further development. <\/p>\n<p> <a href=\"https:\/\/hafnarfjordur.is\/en\/media\/annual-accounts\/arsreikningurhafnarfjardarbaejar2016.pdf\/\">The 2016 annual report for the Municipality of Hafnarfj\u00f6r\u00f0ur can be found HERE.<\/a> <\/p><\/p>","protected":false},"excerpt":{"rendered":"<p>&nbsp;Algj\u00f6r vi\u00f0sn\u00faningur hefur or\u00f0i\u00f0 \u00ed rekstri Hafnarfjar\u00f0arb\u00e6jar \u2013 \u00far halla \u00ed afgang Skuldavi\u00f0mi\u00f0 komi\u00f0 undir 150% &#8211; b\u00e6rinn losnar undan eftirlitsnefnd me\u00f0 fj\u00e1rm\u00e1lum sveitarf\u00e9laga Skuldahlutfall Hafnarfjar\u00f0arb\u00e6jar var 169,6% \u00ed \u00e1rslok 2016 samanbori\u00f0 vi\u00f0 194% \u00ed \u00e1rslok 2015 og hefur ekki veri\u00f0 l\u00e6gra \u00ed aldarfj\u00f3r\u00f0ung e\u00f0a fr\u00e1 \u00e1rinu 1992 Rekstrarkostna\u00f0ur n\u00e1nast \u00f3breyttur \u00e1 milli \u00e1ra Skuldahlutfall [&hellip;]<\/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-13323","post","type-post","status-publish","format-standard","hentry","category-frettir"],"acf":[],"_links":{"self":[{"href":"https:\/\/hafnarfjordur.is\/en\/wp-json\/wp\/v2\/posts\/13323","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=13323"}],"version-history":[{"count":0,"href":"https:\/\/hafnarfjordur.is\/en\/wp-json\/wp\/v2\/posts\/13323\/revisions"}],"wp:attachment":[{"href":"https:\/\/hafnarfjordur.is\/en\/wp-json\/wp\/v2\/media?parent=13323"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hafnarfjordur.is\/en\/wp-json\/wp\/v2\/categories?post=13323"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hafnarfjordur.is\/en\/wp-json\/wp\/v2\/tags?post=13323"}],"curies":[{"name":"WordPress","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}