Social welfare is no longer a burden on the city’s financial planning. Lahti will now focus on vitality and education.
Lahti’s 2023 budget is the first budget of the new municipal economy. From next year, social and health services and their funding will be transferred from the municipalities to the regional government and the state.
High inflation and energy prices are driving up municipal spending, and the pressure to adjust finances is increasing in municipalities of all sizes.
The city is therefore in the process of drawing up a new rebalancing programme. Lahti will also continue to invest in vitality, but the positive effects will only become visible years from now, towards the end of the decade, according to the Mayor.
Next year’s outlook in figures
In the mayor’s budget proposal, the deficit for the fiscal year 2023 is estimated at 20.0 million euros. The annual profit is 33.3 million. The accumulated surplus on the balance sheet is estimated to be around 159.9 million.
The financing need is covered by taking out a long-term loan of EUR 81.0 million. Long-term loans will be amortized by approximately EUR 71.9 million, so the loan amount will increase by approximately EUR 9.1 million.
Dividends paid by Lahti Energia will decrease significantly. In 2021, Lahti Energia paid nine million in dividends, but the dividend income for the years 2023–2025 is estimated at one million euros per year.
Economic rebalancing programme in 2023
The budget presentation calls for efficiency measures in various industries. In the following, a few excerpts from the need to improve education services compared to 2022.
2.15 million euros. Possibilities to improve operations are sought through re-evaluation and tendering of the discretionary service offering and purchase and support services. In addition, the filling of open positions will be critically examined.
0.8 million euros.
Construction of sports facilities increases operating expenses. However, it has been decided to lower the prices for children’s and young people’s sports facilities. The increase in revenue targets recorded for the industry is at odds with the realized revenue of the last two years.
Highlights of investments:
14.1 million euros have been set aside for energy investments next year, which will be used to build the Pippo-Kujala area.
About 4 million euros will be reserved for corporate arrangements related to event activities, i.e. the shutdown of Lahti Events.
The biggest single project is the renovation of the town hall. The basic improvement works of the town hall will be completed in the summer of 2023. The total cost estimate of the project is 22.2 million.
The old school building belonging to the Kivimaa multi-purpose building can be put into use in the spring of 2023. The multi-purpose building will have facilities for pre-primary and basic education, kindergarten and youth services. The cost estimate is 10.8 million.
The renovation of the old school building, which is part of the Myllypohja multi-purpose building, will be carried out at the same time as the new construction part. The premises will be ready in the spring of 2026. The cost estimate for the basic improvement is 8.7 million euros.
At Kasakkamäki school, it is necessary to make a fundamental improvement due to the age of the building. Its implementation is scheduled for 2025–2026. The cost estimate for the basic improvement is 9.3 million euros. The new construction option is also being investigated.
Project plans are drawn up for Kasakkamäki, Länsiharju and Ersta schools and Sopenkorvenkatu 9, on the basis of which decisions are made about the content and costs of the projects.
The final financing of the repairs and modifications of the historical museum, which will be completed at the end of 2022, is scheduled for 2023.
Maauimala’s technical condition requires a fundamental repair. Measures, schedule and costs are defined in the context of project planning.
The Renkomäki multipurpose building replaces the premises of the Renkomäki school and library, as well as the premises of the Ali-Juhakkala school. The facilities will be completed at the turn of 2022–2023.
The construction of the new construction part of the Myllypohja multi-purpose building will start simultaneously with the basic improvement of the old school building in early summer 2024. The premises will be ready in the spring of 2026. The total cost estimate of the new building is 18.4 million euros.
The new Kaarikatu daycare building replaces the current Kaarikatu daycare building. Construction will start in the spring of 2024. The premises will be ready in the summer of 2025. The cost of the new building is 7.2 million euros.
The new Paavola daycare building replaces the current Paavola daycare building. Construction will start in early autumn 2025. The premises will be ready at the end of 2026. The costs of the new building are around 8.6 million euros.
The new building replacing the Harju school will be built on the site of the demolished Tiirismaa school. The construction of a new school building or multi-purpose building can start in the spring of 2026 at the earliest. The construction time is about 2 years. Future traffic arrangements in the city center may affect the schedule.
Mukkula’s elementary and middle schools, kindergarten, library and youth facilities are located in the Mukkula multipurpose building. The total cost estimate for the new building is 40 million euros. The multi-purpose building will be completed in the summer of 2027 after the leases for the current shelters have ended.
The race park’s main grandstand building will be completed at the turn of 2024–2025. The total cost of the project is 13.7 million euros and it is expected to receive a state grant of 750,000 euros.