The city government managed to halve the 20 million euro deficit and avoid borrowing. More income is expected from capital gains.
The Left Alliance, Liike Nyti, KD and RKP do not have representation in the City Hall.
According to the presidium of the city council, the office holders had received a strong message that the increased expenses now mean an even worse situation next year.
Kisapuisto is waiting for FC Lahti’s commitment
The city government managed to halve the deficit, which was 20 million euros in the mayor’s original proposal. Now the deficit for the financial year is 9.3 million euros.
In the mayor’s budget proposal, a new loan of 9 million euros would have been taken, but now the city government managed to avoid taking a loan. Next year would thus be the third year in a row that the city’s loan amount does not increase. Of the investments, the construction projects of the Myllypohja multipurpose hall and the Launee/Hennala daycare center will be moved forward to 2025 and 2026.
The money has been allocated for the main stand of the race park, but the city government requires a commitment from FC Lahti before the construction work begins. According to the presidium of the city council, the city can build the Kisapuisto without FC Lahti, but then it may not be necessary for football players.
More sales spirit for the city
The most significant spending increases in the mayor’s proposal came for basic education, upper secondary education and early childhood education. The savings target for these was halved at the mayor’s proposal, which means that the need to improve efficiency of around three million euros became the need to improve efficiency of 1.55 million. The savings target for youth services was removed.
The enhancement measures required for the cultural action were slightly reduced.
Instead, more income is expected. The sales profit target was increased by 12 million euros for next year. According to Sirkku Hildén, the chairman of the City Board, the money would come from sites where negotiations are already underway. That’s why they aren’t being told yet. More income is also expected from the urban environment service area and public transport.
All in all, more sales efforts and a good customer experience are expected from the city’s services. The city theater, orchestra and museum must sell their products better. Index increases are also expected for payments and taxis.
Hard times ahead
The effects of the energy crisis and high inflation have not been fully assessed in the budget. They are evaluated at the beginning of the year and, if necessary, a supplementary budget is made. At the proposal of the mayor, the politicians will assemble a parliamentary group, which will start preparing the economic balance program for the years 2024–2026.
According to Hildén, Lahti has a strong balance sheet, which allows the city to get out of a difficult situation.
– We have promised certain services to Fazer and Lutti. We can’t make everything miserable. Improving operations in education is not easy now, but we have received information from the office holders that these can be done.
– We all know that we have done the right things. It takes a few years before the benefits start to show. The bay must have the patience to prosper, says Bruneau.
– We have to trust that in the future we will have a big cake that we can share.
The Lahti council will decide on the budget and financial plan on 28 November 2022.