Financial statement 2023: The result of the city of Riihimäki is in surplus

The financial statement of the city of Riihimäki for 2023 has a surplus of 11,1 million euros. The water supply company's share of the surplus is EUR 1,0 million. The good result was due to better realized tax revenues than anticipated in the budget, EUR 1,9 million.

"I would like to thank the entire staff of the city group for achieving last year's positive result. In the municipal economy, we are moving towards challenging times and it is likely that the surplus results of a good ten million will go down in history due to the radical reform of the state share system. In order to keep the city's economy balanced in the future, we need to implement a stable economy program and adapt our operations to changing conditions. This does not mean cowering inward. We need both balancing actions and bold investments in our vitality in an appropriate ratio", states Mayor Jouni Eho.

The cash flows of the city's economy changed significantly in 2023. The comparability of the 2023 financial statements with respect to 2022 must take into account the elimination of the expenses and income of the social and health sector (net approx. 111 million euros). The responsibility for organizing social and health care and rescue operations, the corresponding net costs and the corresponding tax revenues, investment responsibility and part of the loan portfolio (municipal corporations) were transferred to the welfare area.

Operating income decreased slightly

The operating income of the city of Riihimäki was EUR 31,0 million. They decreased by 3,9 million euros from the previous year (11,2 percent). From operating income, fee income and subsidies and grants were weaker than the previous year. The amount of other operating income was 2,5 million euros better than the previous year.

Development of operating expenses

Russia's war of aggression against Ukraine, the energy market situation, continued high inflation and rising interest rates affected the city's expenditure development. Operating expenses were 100,2 million euros (in 2022, operating expenses were 208,1 million euros).

Personnel costs were EUR 58,6 million, of which the water supply company's share was EUR 1,8 million. Salary increases in the municipal sector, environmental healthcare personnel in Etelä-Häme, and increases in integration resources affected personnel costs in 2023. In the previous year, 2022, personnel costs were 76,4 million euros. They included personnel who moved to the welfare area on January 1.1.2023, XNUMX.

Tax revenues were better than expected

Tax revenues increased by 1,9 million euros compared to the budget and were 76,7 million euros. Municipal taxes accumulated EUR 0,8 million and property taxes EUR 0,5 million more than the budget. Corporate taxes, on the other hand, accumulated 0,6 million euros more than the budget. The city's total tax revenue decreased by 45,3 percent from the previous year as a result of the social security change.

The state contributions, 14,1 million euros, fell short of the amended budget by 0,3 million euros. The annual profit was 22,8 million euros, or 800 euros per inhabitant. The background of the tax income was influenced, among other things, by the tax settlements transferred from 2022 to 2023, i.e. the so-called tax tail of the social security reform.

The city's loan portfolio grew

The city's loan portfolio was 2023 million euros at the end of 69,2. The loan portfolio increased by 11,7 million euros from the previous year. The city's equity ratio was 65,9 percent and the relative indebtedness was 77,0 percent at the end of the year.

At the end of the year, the city's loan portfolio was 2 euros per inhabitant, and the group's loan portfolio was 430 euros per inhabitant.

The most significant investment is the renovation of the swimming hall

The city's net investment expenses totaled 28,6 million euros. Of this, the city mother's investments were 19,7 million euros and the water supply company's 8,9 million euros. The level of investments was 10,7 million higher than the previous year.

8,4 million euros were used for space projects, the most significant of which were the basic improvement of the swimming hall, 4,8 million euros, the covering of the summer theater, 0,4 million euros, and the purchase of the Riihimäki regional health center municipal corporation building (Penttilänkatu 5) for 1,4 million euros. Municipal engineering was built with 15,1 million euros. Of these, the city mother's net investments were 9,0 million euros and the water supply company's 6,1 million euros.

The city government will discuss the financial statements at a meeting on Monday, March 25.

Take a look at the agenda of the meeting on our website.