Hafnarfjarðarbær's Financial Growth and Robust Future Outlook
Positive Financial Performance for Hafnarfjörður
Hafnarfjörður, a town with a robust economic backdrop, has exhibited a stellar performance in its financials. The annual report for the year 2024 highlighted a remarkable operational surplus of 1.208 billion krónur for its A and B divisions, a significant increase from the previous year's figure of 808 million. Overall operational results, considering financial costs, reached 3.545 billion krónur, showcasing the town's commitment towards fiscal responsibility.
Notably, the operational surplus for division A was 117 million krónur, although lower than the previous year's 251 million. Meanwhile, operational cash flow from both A and B divisions totaled 3.734 billion krónur, surpassing projections by 975 million krónur. This cash flow represented 7.6% of total income, a rise from 5.6% in the prior year, emphasizing a strong revenue-generating capability.
Strong Economic Indicators
According to Valdimar Víðisson, the mayor, the foundational operations of Hafnarfjörður have performed exceptionally well despite a slower population growth than expected and challenges arising from high interest rates. The municipality's strong financial position allows it to confidently engage in projects and financial commitments. The substantial cash flow from operations further solidifies the municipality's capability to fund important initiatives and investments.
Continuing on this trajectory, the operating revenues from divisions A and B amassed to 49.3 billion krónur in 2024, an increment of 2 billion krónur compared to the previous year. This growth derived largely from increased income from local taxes and property taxes, which collectively saw a boost of 2.4 billion krónur. Tax revenue accounted for 51.4% of total income, with property taxes contributing an additional 9.1%.
Expenses and Financial Management
The operational expenditures for this period reached 43.9 billion krónur, an increase of 1.9 billion from the last year. This included wages and related costs, which represented a significant 24.1 billion krónur. The share of wages and employee-related charges from total revenue was approximately 48.9%, indicating a substantial investment back into the community through employment.
Financial costs for the year were 2.337 billion krónur, which is 503 million less than the previous year's expenditure. Favorably, the municipality's financial costs were also approximately 180 million krónur below expectations, primarily attributed to lower inflation than initially predicted.
Increased Investments and Assets Growth
The operational results for both divisions were positively marked at 1.208 billion krónur, though still 658 million krónur lower than planned. It is noticeable that the anticipated income from land sales was about 2.027 billion krónur less than predicted for the year. The debt ratio for Hafnarfjörður stood at 90% by year-end, well below the 150% threshold outlined by regulations regarding fiscal responsibilities in municipalities. The total liabilities ratio increased from 129% to 133%.
Investment efforts within the year amounted to 8.3 billion krónur, marking a 17% year-over-year increase. At the end of the year, total assets reached 101.0 billion krónur, showing a growth of 7 billion. The municipality's total debts and obligations were recorded at 65.7 billion krónur, reflecting an increase of 4.6 billion. Pension obligations made up around 27% of the total debts, a figure notably higher compared to neighboring municipalities.
At the close of the year, the net worth stood at 35.3 billion krónur, increasing by 2.5 billion krónur. The equity ratio remained stable at 34.9%, aligning with figures from the previous year. The population of Hafnarfjörður on January 1, 2025, was 31,525, reflecting a net gain of 909 residents.
Frequently Asked Questions
What is the operational surplus for Hafnarfjörður in 2024?
The operational surplus for Hafnarfjörður in 2024 was 1.208 billion krónur.
How much did revenues from taxes increase in 2024?
Revenues from local taxes and property taxes increased by 2.4 billion krónur in 2024.
What was the total expenditure for Hafnarfjörður in 2024?
The total operational expenditures for Hafnarfjörður in 2024 were 43.9 billion krónur.
What is the population growth in Hafnarfjörður?
The population increased by 909 residents, totaling 31,525 by January 1, 2025.
How much did Hafnarfjörður invest in 2024?
Hafnarfjörður's investments for 2024 reached 8.3 billion krónur, a 17% increase from the previous year.
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