The city of Riihimäki's stable economy program is progressing to decision-making

As part of the stabilization of the economy, the city of Riihimäki aims for savings of 4,2 million euros for the planning period 2025–2027. Of the savings in operating expenses, 2,2 million euros will be allocated to the year 2025 and 2,0 million to the years 2026–2027. In addition, investments are phased and prioritized in order to curb the growth of the loan portfolio. The city's stable economy program does not include layoffs or furloughs.

The stable economy program will go forward to be decided by the city government on Monday, May 20, 2024. The mayor's decision proposal only concerns the amount of savings, it does not include proposals related to the service network of kindergartens and schools. In addition, according to the proposal, the city government prepares to cooperate with the city's economic company Riihimäen Tilat ja Kehitys Oy (RTOY) and to utilize funded funds in the implementation of flagship projects. The financial program will be reported to the council.

The savings targets will become concrete in the fall

"Possible areas for savings have been discussed extensively during the spring between the branch management, personnel and decision-makers in information sessions, evening schools and seminars. The final decisions on savings methods and the distribution of savings to industries will be made during the preparation of the 2025 budget and the financial plan for the following years. The EUR 4,2 million target for operating expenses serves as a guiding framework for industries and boards when preparing the budget and plan," says Mayor Jouni Eho.

The city has prepared a stable economy program under the guidance of the city government. The goal of the program is to adapt operations, structures and resourcing so that the economy is sustainable in the long term. Reaching the goal requires that the city's finances and assets are managed in a planned, responsible and balanced manner.

The program is the city's answer to the difficult situation of the municipal economy. The growth of Riihimäki city's operating expenses and debt development have gone in a worse direction in recent years. Without the program, the city's economy would turn into a deficit starting in 2025, the annual profit would turn negative in 2028, and the loan portfolio would double by 2030.

Also on the agenda is the environmental report and the sale of the school

At its Monday meeting, the city government will also discuss the environmental report and the sale of the Haapahuhta school. The mayor proposes that the city government sell the Haapahuhta school with its residential buildings and the areas to be handed over to the highest bidder for a sale price of 9 euros, and accept the deed of sale, if the offer of the highest bidder is still valid.

Information about the environmental report 2023

Website of the Stable Economy Program

Agenda of the City Council