{"id":14285,"date":"2020-05-07T00:00:00","date_gmt":"2020-05-07T00:00:00","guid":{"rendered":"https:\/\/hafnarfjordur.is\/abyrg-fjarmalastjorn-og-traust-fjarhagsstada\/"},"modified":"2022-10-25T09:03:10","modified_gmt":"2022-10-25T09:03:10","slug":"responsible-financial-management-and-a-sound-financial-position","status":"publish","type":"post","link":"https:\/\/hafnarfjordur.is\/en\/abyrg-fjarmalastjorn-og-traust-fjarhagsstada\/","title":{"rendered":"Responsible financial management and a sound financial position"},"content":{"rendered":"<p><strong><u>The annual accounts of Hafnarfj\u00f6r\u00f0ur for the year 2019:<\/u><\/strong><\/p>\n<h4><strong><em>Responsible financial management and a sound financial position<\/em><\/strong><\/h4>\n<\/p>\n<ul>\n<li>Operating surplus<br \/>\namounting to 1.236 million kr\u00f3na for A and B parts of the municipal fund<\/li>\n<li>The debt ratio remained<br \/>\nunchanged 112% year-on-year <\/li>\n<li>Working capital from<br \/>\nOperating profit was approximately 3.4 billion kr\u00f3na, or 11.91% of total revenue. <\/li>\n<li>Investments<br \/>\namounting to 4.6 billion kr\u00f3nur in the year <\/li>\n<\/ul>\n<p>Annual accounts<br \/>\nThe 2019 budget for the City of Hafnarfj\u00f6r\u00f0ur was presented to the town council today. Despite<br \/>\nDue to significant investments and infrastructure development,<br \/>\nThe operating result was positive and above forecasts.<\/p>\n<p> <a href=\"\/en\/province\/meeting-minutes\/displaymeeting.aspx\/?id=2004015F\" class=\"internal\">See item 2 in the minutes of the town council<\/a> <\/p>\n<p>Leftover<br \/>\nOperations of parts A and B of the municipal fund amounted to 1,236 million kroner, but the budget with<br \/>\nThe supplementary budget provided for a surplus of 642 million kr\u00f3nur. Section A of the municipal fund showed<br \/>\nA surplus of 426 million kr\u00f3nur, whereas the plan had anticipated a deficit of 45 million.<br \/>\ncrown. The difference between the estimate and the result can be attributed, among other things, to the fact that<br \/>\nThe charge for pension fund liabilities was 392 million kr\u00f3nur lower than forecast.<br \/>\nhad been provided for, in addition to which the capital items amounted to 245 million kr\u00f3na<br \/>\nlower due to a lower inflation component. Tax revenues, however, were 94 million<br \/>\na kr\u00f3na lower than the budget had provided for and contributions from the Municipal Equalisation Fund were<br \/>\n46 million below plan. Operating cash flow amounted to 3,396 million kr\u00f3na or<br \/>\n11.91% of total revenue. <\/p>\n<p>\u201e<em>We have taken cautious and responsible steps in<br \/>\nthe operation of the municipality. The results of the 2019 annual accounts are in line with<br \/>\nour plans and are consistent with the objectives of responsible financial management and well<br \/>\nwell-considered decisions\u201c <\/em>says R\u00f3sa Gu\u00f0bjartsd\u00f3ttir, Mayor of Hafnarfj\u00f6r\u00f0ur.<br \/>\nThe Covid-19 action plan was unanimously approved by the town council at the beginning of April.<em> \u201eI am convinced that the sound operation of the last<br \/>\nthat years of solidarity and unity among the management and staff will benefit the municipality<br \/>\nthrough the hardships that the Covid-19 pandemic entails. Emphasis will be<br \/>\nto provide a financial injection to those places that get the wheels of industry turning and<br \/>\nThe economy is on the move again. We therefore intend to accelerate projects and refurbishments,<br \/>\nPrioritise projects based on revised criteria and increase employment opportunities. Obviously<br \/>\nare the assumptions of the 2020 budget largely broken and it is clear that the plans<br \/>\nwill undergo significant changes in the coming weeks and months. Council tax revenues will<br \/>\nCuts are being made, deadlines are being pushed back and expenditure is increasing. This will be a major challenge.<br \/>\nwhich will have a significant impact on the council's operations. But we have both the capacity<br \/>\nand the ability to minimise negative impacts on services for residents and development<br \/>\ninfrastructure.\u201d <\/em><\/p>\n<p><strong>Investments and development<\/strong><\/p>\n<p>Investments<br \/>\nIn 2019, they amounted to 4,557 million kr\u00f3na. Among the main projects were<br \/>\nOngoing construction of a new school in Skar\u00f0shl\u00ed\u00f0, due for completion in autumn 2020 for<br \/>\n1.258 million kr\u00f3na, construction of a nursing home for 855 million kr\u00f3na and<br \/>\nConstruction of sports facilities at \u00c1svellir, Kaplakriki and at Keili for<br \/>\nin total, around 656 million kr\u00f3na. Construction on primary and nursery schools amounted to around 167<br \/>\nmillions of kroner and renovations at St. Joseph's Hospital of around 85 million kroner. Then amounted<br \/>\npurchase price of flats from the Housing Office of approximately 243 million kroner. Construction of<br \/>\nRoad construction and harbour works cost 1,010 million kr\u00f3na but revenue from<br \/>\nThe cost of road construction and building rights amounted to approximately 740 million kr\u00f3na.  <\/p>\n<p><strong>Unchanged debt ratio<\/strong><\/p>\n<p>Repayments<br \/>\nLong-term debt amounted to a total of about 1.5 billion kr\u00f3nur in the past year. Loans were taken<br \/>\nnew loans during the year totalling 1.1 billion kr\u00f3na. In addition,<br \/>\nLoans taken on the basis of a lease agreement with the Treasury amounting to 600 million<br \/>\nKr\u00f3na and 495 million kr\u00f3nur for the financing of investments by the Housing Office<br \/>\non rental properties. The debt ratio of Hafnarfj\u00f6r\u00f0ur municipality was 112% at the end of 2019, but that<br \/>\nremained unchanged year-on-year and is well below the 150% debt ratio according to the regulation<br \/>\non financial benchmarks and oversight of municipal finances. Total debts and liabilities amounted to<br \/>\namounted to 45,300 million kr\u00f3na, an increase of 2,109 million kr\u00f3na year-on-year. Total assets<br \/>\nAt the end of the year, the total amounted to 59,536 million kroner and increased by 3,566 million between<br \/>\nyears old.<\/p>\n<p> <a href=\"https:\/\/hafnarfjordur.is\/en\/media\/annual-accounts\/hfjarsreikningur2019.pdf\/\"><strong>Annual accounts<br \/>\nThe 2019 Hafnarfj\u00f6r\u00f0ur City Guide can be accessed HERE.<\/strong><\/a> <\/p>\n<p> <a href=\"\/en\/province\/baerinn-i-tolum\/annual-accounts\/\" class=\"internal\"><strong>Annual and half-yearly accounts for previous years can be accessed HERE.<\/strong><\/a> <\/p>","protected":false},"excerpt":{"rendered":"<p>\u00c1rsreikningur Hafnarfjar\u00f0ar fyrir \u00e1ri\u00f0 2019: \u00c1byrg fj\u00e1rm\u00e1lastj\u00f3rn og traust fj\u00e1rhagssta\u00f0a Rekstrarafgangur nam 1.236 millj\u00f3num kr\u00f3na fyrir A og B hluta b\u00e6jarsj\u00f3\u00f0s Skuldavi\u00f0mi\u00f0 h\u00e9lst \u00f3breytt 112% milli \u00e1ra Veltuf\u00e9 fr\u00e1 rekstri var um 3,4 milljar\u00f0ar kr\u00f3na e\u00f0a 11,9% af heildartekjum Fj\u00e1rfestingar \u00e1 \u00e1rinu n\u00e1mu 4,6 millj\u00f6r\u00f0um kr\u00f3na \u00c1rsreikningur Hafnarfjar\u00f0arb\u00e6jar fyrir \u00e1ri\u00f0 2019 var lag\u00f0ur fram \u00ed [&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-14285","post","type-post","status-publish","format-standard","hentry","category-frettir"],"acf":[],"_links":{"self":[{"href":"https:\/\/hafnarfjordur.is\/en\/wp-json\/wp\/v2\/posts\/14285","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=14285"}],"version-history":[{"count":0,"href":"https:\/\/hafnarfjordur.is\/en\/wp-json\/wp\/v2\/posts\/14285\/revisions"}],"wp:attachment":[{"href":"https:\/\/hafnarfjordur.is\/en\/wp-json\/wp\/v2\/media?parent=14285"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hafnarfjordur.is\/en\/wp-json\/wp\/v2\/categories?post=14285"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hafnarfjordur.is\/en\/wp-json\/wp\/v2\/tags?post=14285"}],"curies":[{"name":"WordPress","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}