HELSINKI: The city of Rovaniemi’s operating expenditures posted a moderate growth in 2015, despite the country’s tight economic situation. The annual contribution margin amounted to 2.8 million euros while the municipality invested 30 million euros. According to the municipality, the investments were mainly funded through loans. Of the investments, 20 million euros went to construction of the municipality’s infrastructure and purchase of land.
“We are still living in a challenging time, but we may be reasonably satisfied about how last year went. The expenditures were managed as planned,” Rovaniemi city Mayor Esko Lotvonen in an interview told the Finnish language daily Lapin Kansa. Last year, the municipality made a profit of 33.1 million euros and the revised financial statement transfer surplus amounted to 27.8 million euros.
The significant positive results were brought about thanks to a 50.5 million euro capital gains obtained through the sale of the municipality-owned business Napapiirin Vesi to another municipality-owned company Rovaniemen Energia. However, the money following the transaction did not move, because the sale was organised internally within the group.
Another positive outcome in 2015 was the tax revenue which grew by 2.4 per cent (equivalent to 5.7 million euros) without raising the tax rates. Forty-three per cent of the municipality’s total revenue of 556.7 million euros came from tax income. According to the mayor, this shows that there is an economic buzz in the city. The income received from the central government, however, declined by nearly one million euros.
Spending in specialised care increased slightly in 2015, especially in psychiatry. The basic healthcare purse is also tight, which as a result led an increase in the customer fee. Despite the tight situation, no one will be left without care and neither will anyone be abandoned. The city’s liquidity is only 10 days. According to the city, this is not sufficient, as 14-30 days is considered adequate. The scarcity of finance is foreseen to continue in the future. No major surprises can be afforded.
