Financial Statements 2025: Good results from the City of Riihimäki in a challenging situation

26.3.2026 News Participate and influence Finance and procurement Vitality Jokikylä Town government Program for a stable economy

A winding riverbed, built-up light sand banks. A railway in the background. A light blue sky with white cotton candy clouds. — The bed of the Vantaanjoki River was moved to the center of the future Jokikylä residential area. Photo: Jenniina Nummela

The financial statements of the City of Riihimäki for 2025 show a surplus of 2,7 million euros. The water utility company's share of the surplus is 2,0 million euros. The better-than-expected result was influenced by non-recurring financial income, growth in sales revenue, and the warm end of the year, which reduced the costs of the technical sector.

The city's result improved compared to 2024, as the surplus for the financial year was only 0,1 million euros at that time. However, the years are not comparable, as in 2024, an investment reserve of 3,5 million euros was made from the result for the campus investment of Häme University of Applied Sciences (HAMK), which reduced the surplus by a corresponding amount.

"A better-than-expected surplus result is a decent performance for the City of Riihimäki in a very challenging operating environment. I would like to thank the entire staff and elected officials for their good cooperation in achieving the surplus result. The year 2025 included more than 2 million euros in savings measures from the stable economy program from the sectors. The program should be continued with determination, because in the coming years the challenges of municipal finances will not abate - quite the opposite," says Mayor Jouni Eho.

Operating income increased by three million

In 2025, operating income was 35,5 million euros. It increased by 3,2 million euros. The figures do not include internal items. The growth is explained in particular by the start of operations of the employment services in South Häme, which increased operating income by 2,7 million euros. Another item that increased sales income was the compensation received from the state for integration.

Operating expenses increased by almost six million

The city's operating expenses were lower than budgeted. External operating expenses were 105,6 million euros. Operating expenses increased by 5,8 million euros from the previous year. The increase is practically entirely explained by the costs brought about by the reform of employment and economic services, as the operating expenses of the South Häme employment area were 4,6 million euros and in addition the city's share of unemployment benefits increased by 2,4 million euros.

The South Häme employment area provides employment, business and integration services in the municipalities of Hausjärvi, Janakkala and Loppi in addition to the city of Riihimäki. Riihimäki acts as the responsible municipality for the employment area. Therefore, the income and expenses of the employment area are fully reflected in the city's income statement. The employment area's finances were better than budgeted and the city was able to reimburse the contributions of the member municipalities.

The city's personnel costs were 63,1 million euros. The costs increased by 2,7 million euros from the previous year. The increase in personnel costs is almost entirely explained by the personnel costs of the South Häme employment area. In addition, the costs increased due to salary increases in the municipal sector.

Tax revenues were better than expected

The annual gross margin of the City of Riihimäki (including the water supply company) in 2025 was 15,1 million euros, or 528 euros per inhabitant. The annual gross margin of the parent city (excluding the water supply company) was 9,8 million euros and that of the water supply company was 5,3 million euros. The annual gross margin decreased by approximately 1,3 million euros from 2024.

The annual profit shows the revenue funding that remains available for investments, investments and loan repayments.

The city's loan portfolio grew

The city's loan stock was 86 million euros at the end of 2025. The loan stock increased by 7,3 million euros from the previous year, due to investments, among other things. As the loan stock increased, the city's balance sheet indicators weakened slightly. The city's equity ratio was 63,1 percent and the relative debt ratio increased to 91,3 percent at the end of 2025.

The city's loan stock was 3,012 euros per inhabitant at the end of the year and the group's loan stock was 4,150 euros per inhabitant. The group's loan stock decreased from 2024. Both figures are below the average for municipalities. According to financial statements estimates, municipalities in mainland Finland had loans of approximately 3,550 euros per inhabitant at the end of 2025.

The most significant investment is the construction of the Jokikylä residential area.

The city's investment expenditure totaled 22,9 million euros. Of this, the city parent company's investments were 19,9 million euros and the water utility company's investments were 3,4 million euros. The amount of investments was slightly lower than the previous year.

The largest single investment in 2025 was the construction of the Jokikylä residential area and park, EUR 5,0 million. Construction work began in 2023 in the new local plan area of Jokikylä. The work will include the construction of the area's park, public areas, a stormwater pumping station, a new Kanavakatu and the relocation of the Vantaanjoki riverbed. During 2025, the Vantaanjoki riverbed was relocated to the new location in accordance with the plan, the concrete structures for the stormwater pumping station were cast and equipment installations began. Two new bridges were built over the riverbed. The project progressed faster than planned, which increased the funding requirement for 2025. The city council granted the project additional funding for 2025. The total project budget, EUR 10,8 million, remained unchanged. The construction of the Jokikylä public areas will continue until early 2027.

In 2025, the city built municipal engineering projects worth 8,4 million euros, with the Jokikylä area being the largest target.

EUR 4,0 million was spent on facility projects, of which the largest amount in terms of euros was the final work on the basic renovation of the swimming pool, EUR 2,4 million. During the year, the city sold the Riihikodi building and Kiinteistö Oy Riihimäen Paloasema to the Kanta-Häme welfare area.

The City Board will discuss the financial statements at its meeting on Monday, March 30. The City Council will discuss the financial statements at its meeting on June 8, 2026.