City of Kotka’s balance sheet can cope with a EUR 13 million deficit in next year’s budget – adjustment to the welfare reform underway

31.10.2023 | The City of Kotka’s budget for next year is about to be more than EUR 13 million in the red.

Mayor Esa Sirviö says the financial situation in the coming years will be challenging, but the city’s situation will be eased by the surplus accumulated on its balance sheet in previous years.

The surplus is estimated at just under €30 million. This means that the city does not have to make savings all at once, but can make them in the longer term.

– The city’s balance sheet will be able to withstand the deficit proposed for 2024, says Sirviö.

The City of Kotka aims to balance its finances by 2026. According to the mayor, the plan is to freeze operating expenditure at the 2024 level.

– That means in practice austerity measures when we know that inflation is running out and prices are rising, Sirviö says.

Structural reforms are planned for the coming years. The city must also look to increase its revenues.

The negative budget proposal is largely due to the welfare reform.

In terms of the city’s attraction and retention power, the mayor is positive that the new campus of the University of Applied Sciences of South-East Finland will soon be completed in Kantasatama. There are also opportunities in industry, such as battery projects.

Caption: Overall, the city’s net investment for the period 2024-2028 is around EUR 84.7 million, with the 2024 level being around EUR 25.8 million. The picture shows the Käpylä primary school under construction, which has a budget of just over EUR 10 million in 2024.

 

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