The annual report of the Municipality of Hafnarfj\u00f6r\u00f0ur for the year 2021 was presented in
\nto the town council today. The operating result for parts A and B was a deficit of 709 million.
\nkr\u00f3na in 2021. Forecasts had anticipated a negative result for the period and
\nthe result is 258 million kr\u00f3nur better than estimated. This result is mainly explained by a 2.3 billion kr\u00f3na increase
\npension liabilities last year. This is due to new calculations.
\nActuaries estimate a 900 million kr\u00f3na increase based on life expectancy assumptions.
\nObligations to the City of Hafnarfj\u00f6r\u00f0ur.<\/p>\n
\u201eThe annual accounts reflect the increased financial strength of the City of Hafnarfj\u00f6r\u00f0ur, despite significant challenges in the operating environment for local authorities last year. This is most evident in the substantial increase in investments and the significant repayment of long-term loans.,<\/em>\u201csays R\u00f3sa Gu\u00f0bjartsd\u00f3ttir, the mayor.\u201eIt now comes down to us, the people of Hafnarfj\u00f6r\u00f0ur, how long the payments into pension liabilities were delayed. The municipality was many years behind its neighbouring municipalities, as it did not begin making payments until 2012.<\/em> The robust development in Hafnarfj\u00f6r\u00f0ur is most evident in the strong revenue from the sale of plots for residential and commercial use. This development will deliver a lasting increase in income tax revenue for Hafnarfj\u00f6r\u00f0ur.<\/em>\u201c<\/p>\n Operating revenue amounted to 33.6 billion kr\u00f3na in 2021 and operating expenses The municipality's loans were reduced by 2 billion kronur last year. Investments in 2021 amounted to 4.4 billion kr\u00f3nur, which is almost 30% Annual report of the Municipality of Hafnarfj\u00f6r\u00f0ur for the year 2021<\/a> <\/p>\nIncreased wage costs are a significant burden in Hafnarfj\u00f6r\u00f0ur, as with other local authorities. <\/h4>\n
\nwere 31.2 billion kr\u00f3na. Operating result before depreciation and
\nThe capital item was positive by 2.4 billion kr\u00f3na. Increased wage costs offset this.
\nHeavy in Hafnarfj\u00f6r\u00f0ur as with other municipalities but wages and wage-related
\nFees increased by 9.41% year-on-year. The negative effects of the Covid-19 pandemic are added.
\non income and expenditure. Plots were sold for 3.5 billion kr\u00f3na and were recorded as income.
\n2.5 billion from land sales and about a billion from a reduction in property transfers.<\/p>\nDebt ratio remains unchanged and debt-to-income ratio falls significantly <\/h4>\n
\nNo new loans were taken out in 2021, with the exception of a 350 million kr\u00f3na
\nFunding from the Housing Office for the purchase of social housing.
\nHafnarfj\u00f6r\u00f0ur's debt ratio remained unchanged at 101% year-on-year and the debt ratio
\ndecreased significantly, from 161% to 149%. Operating cash flow was 1.4
\nbillion kr\u00f3na or 4.11% of total revenue.<\/p>\nAn increase of almost 30% in investments year-on-year<\/h4>\n
\nan increase year-on-year. Total assets at the end of the year were 72.2 billion kr\u00f3na and
\nincreased by 5.2 billion kr\u00f3na year-on-year. Total liabilities and
\nThe municipality's liabilities of 50 billion kr\u00f3na remained virtually unchanged
\nbetween years despite a significant increase in pension liabilities.
\nThe pension liability is now about a third of all total debts and liabilities.
\nof the municipality.<\/p>\n