The drafting of the Riihimäki city's stable economy program started

The city of Riihimäki has started drafting a program for a stable economy. The aim 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.

"Developing the program responds to a challenging situation. The finances of municipalities in Finland are in a difficult situation nationwide. Riihimäki's operating expenses growth and debt development are also going in a worse direction. The city's economy will turn into a deficit starting in 2025, the annual profit will be negative in 2028, and the loan portfolio will more than double by 2030. At the same time, population forecasts and a clear decrease in the number of children have been realized: in the fall of 2022, there were 270 more elementary school students than in the fall of 2024," says city manager Jouni Eho.

School network decisions to be updated by the council

The project plan for the Eastern school and kindergarten is being prepared. As the planning progressed, the cost estimate has gradually increased from 13 million euros to more than 24 million euros. The council has budgeted 20,1 million euros for the project.

"The council must make the decisions left open in the service network decision about the future of schools. Due to the significant decrease in the number of children and the changed image of the economy, the number of schools must be reduced," says city manager Jouni Eho.

The city government will discuss the project plan of the Eastern school and daycare center in March. During the spring, the city council will update the service network decided in August 2022.

"At the City Council seminar, an alternative was also discussed, in which the investment of the Itäinen school and daycare center will be re-evaluated. The decision-makers are also presented with an alternative in which the Eastern school and daycare center would not be built," says Eho.

Decisions by summer 2024

The stable economy program will come into decision-making according to the schedule decided by the city council by the summer of 2024. The council discussed the preparation of the program in December 2023, and the city government started the preparation at its January 2024 meeting.

"During the spring, we prepared a package that includes measures and reforms. The measures are prepared by the industries and they proceed in accordance with the guidelines of the city government as a single unit for decision-making. The package does not include layoffs or furloughs," says city manager Jouni Eho.

The steering group of the stable economy program is formed by the city government and the presidium of the city council. The program's project group includes the city's management team and the first chairmen of the city council and the city board. In addition, when necessary, an external expert is used in the preparation of the program.

City personnel were informed about the launch of the stable economy program today, Thursday, February 22. The progress of the program work is communicated regularly. The city has established a separate page for the stable economy program on the city's website.

Website of the Stable Economy Program

The city's Service Network page