« The situation was worse than we expected »

When independents took over the board of Árborg in 2022, it soon became clear that the municipality’s financial position was worse than they had expected. Great optimization measures were undertaken and now the municipality is delivering one of its best annual accounts from the beginning.

This is stated in the latest episode of Day, where Bragi Bjarnason, mayor of Aarhus and the leader of the Independents, reviews the turnaround of the municipality and the politics of Aarhus.

During the last term under the control of the Central Party, Progress, the Social Democratic Alliance and the Aarhus 2018-2022, the debt of Árborg increased significantly, and in the last municipal elections, that majority was canceled. We took the pure majority of independents.

A large portion of loans went to daily operations

Bragi says that in the 2022 election campaign, there was certainly hopes to take control of operations in the coming election season, but when the majority came, it became clear that the situation was worse than people had suspected.

« It may come to light when we start working and reviewing and reaching the data all to work out the situation, that the situation was worse than we expected. At a certain point, you saw the project and said: » This will take longer and we have to work out plans « . But it can be said that it is grateful to everyone who has found that this has gone much better than we expected, ”says Bragi.

The municipality’s debt accumulation was fast and high in the years 2020-2023. Bragi says that part of this debt accumulation that took place under the control of the previous majority has certainly been investing, but also a lot of the day -to -day operations of the municipality.

« A large part of the loans we (the municipality) were taking every year was to go into the business, which is by no means what he should do, » says Bragi.

The debt criteria dropped significantly

He says that the municipality’s liquidity position was serious and at the worst of the debt, the municipality’s debt criterion was approaching 157% in 2022 « and would have gone higher if we had not intervened immediately based on the plans at the time when we saw what the situation was. »

What is the debt target today?

«  » We have reached 107.6%, or just under 108%, which is naturally a very good position to be in now – still has been growing huge growth in recent years. Unfortunately, ”says Bragi.

As has been discussed, Árborg’s annual accounts for 2024 were presented at the end of last month and the operating result of Part A and B was positive by ISK 3,243 million.

Click the link below to access the interview with Braga Bjarnason as a whole.