The city of Lahti achieved a fairly positive result last year. The result of a good 54 million euros was mainly generated from the profit on the sale of assets.
The mayor has drawn attention to the public debate in which the sale of city property is criticized. For Timonen’s husband, the sale of property is good financial management, because the profit from the sale is made to spawn.
– I often hear comments that the head comes to the fore when the city sells its property. It is forgotten that new assets are created for the city when new investments are made with the capital gains, explains Mayor Timonen.
The result of the city of Lahti for the fiscal year 2022 rose to 54.3 million euros. Without non-recurring income items, the result for the financial year would have been around EUR 17 minus.
The capital gain from the city hospital was 50 million euros. That alone does not explain the positive result, as the budget was originally drawn up with a deficit of EUR 21 million. Part of the result was the increase in tax revenues. Unemployment fell, earnings rose and companies made good results.
The city was also able to reduce its debts. Long-term loans were reduced by EUR 40 million.
Salary arrears of the Hyvinvointiyhti are not cleared
The Päijät-Häme welfare association has informed the municipalities that it is preparing for a retroactive salary harmonization bill of 20 million euros. Lahti’s share of the amount would be approximately EUR 12 million. Employer organizations are currently negotiating salary harmonization.
According to the interpretation of the city of Lahti, the municipalities are not responsible for the salary receivable, because after the handover of the business that took place at the end of the year, the responsibilities have been transferred to the welfare area. On this basis, the city of Lahti has not included the provision for wage receivables in its financial statements.
The future is worrying
The city’s expenses are growing faster than income. Last year, spending on social and health services surprised the city. Last year’s final contribution of Päijät-Häme welfare association exceeded the budget by 15.4 million euros.
City manager Pekka Timonen is worried about the future. The economic plan of the city of Lahti 2023–2025 has been drawn up with negative results. The financial plan includes measures to balance the economy.
*–* The next few years look very difficult. It is also difficult to predict which direction the economy will go, says Timonen.
Lahti also published its first sustainability report in connection with the financial statements. In addition to financial sustainability, the city measures ecological and social sustainability.