City of Helsinki Finacial Statements 2019.

2019 Financial Statements: Significant increase in Helsinki's investment expenditure

Helsinki is a growing city and, much like in the previous years, the big picture in the economy is dominated by a significant increase in the investment expenditure. 

The city’s profit for the financial period was €377 million, an improvement of €94 million compared to the budget.

Despite a high level of investment, the city was mainly able to cover the investments with internal financing. The total cash flow from operations and investments was negative at €−33 million.  The investment expenditure was €780 million, up by €150 million from the previous year. 

  • Helsinki has invested heavily in traffic, new housing areas and schools. New day-care centres have been built as well. Helsinki ensures the prerequisites for sustainable growth, but attention has also been paid to the development of the service quality, says mayor Jan Vapaavuori

The financial statements published now are for the year 2019, but in the future it must also be acknowledged that the city’s financial situation and, consequently, the possibilities to allocate resources for investments will change considerably due to the coronavirus epidemic. 

Construction remains lively

The construction remained lively. There were 6,736 new dwellings completed in 2019. The most intensive housing construction occurred in Jätkäsaari and Kalasatama; almost 2,000 dwellings are being constructed in each area.

Almost €270 million was used for building projects. Jätkäsaaren peruskoulu and the extension to Vesalan peruskoulu were among the biggest projects. Almost €150 million was used for pre-construction and streets and parks, with Kalasatama, Länsisatama and Kruunuvuorenranta topping the table. 

The construction of premises did not reach the level of the previous years. The number of building permits issued was also a little lower than in the previous year.  

Economic development still favourable in 2019

The city’s profit for the financial period was €377 million, €94 million better than in the 2019 budget.

The profit was made possible by the operating income, which by far exceeded the budget. The income from sales of land, buildings and shares was above budget. The combined income from sales was €157 million, up by more than €40 million from the year before. The income from dividends was also above budget.

  • The favourable development of the economy and the city's ability also to finance investments with internal financing is a result of persistent management of the finances, says mayor Vapaavuori. – Maintaining this approach in the city economy will also enable the forthcoming investments required by the city growth.

Tax revenue increased, but did not reach the budget

The tax revenue increased by 2.3 per cent from the previous year. The combined tax revenue and central government transfers to local government was €47 million below the 2019 budget.

External operating expenditure increased by almost 5 per cent

The city’s external operating expenditure exceed the budget by €34 million. This equals an increase of 4.8 per cent compared to the previous year.

Despite a high level of investment, the city was mainly able to cover the investments with internal financing. The total cash flow from operations and investments was negative at €−33 million. The investment expenditure was €780 million, up by €150 million from the previous year.

Loan repayments financed from cash balance

The loan repayments that were made according to plan totalled €87 million. No new loans were taken. It was possible to finance the loan repayments from the cash balance, while the city's liquidity remained at a sufficient level. The city’s loan portfolio decreased to €1,014 million. The loans per capita was 1,551 euros. 

Key figures 2019

Profit/loss for the financial period: €376.9 million.
Total income: €5,242 million.
Operating expenditure: €4,632.7 million Increase 4.9 per cent. Overrun €16.6 million.
Investment expenditure in total: €780 million (without city-owned companies €640 million). Increase €150 million.
Loan portfolio: €1,014 million. Loans/resident: €1,551.
Annual contribution margin €741.4 million. Annual contribution margin/resident: €1,135.
Completed dwellings 6,736 and completed other buildings about 480,000 m2 of floor area.

The population of Helsinki was 653,400. The population increased by 5,350 and the relative population growth was 0.8 per cent. The growth was a tad slower than in the previous years. 

Schedule for the processing of the 2019 financial statements

The City Board processes the financial statements on Monday 23 March 2020. The financial statement proceed to the City Council in June.

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