– We can be satisfied with the city's 2017 financial statements, as the surplus financial statements continued, says the mayor. Mika HatanpääThe surplus was 13.000 euros, and thus the city has achieved a surplus result for four consecutive years and met the characteristics of a strengthening economy.
The 2017 result was significantly weakened by additional depreciation and impairments. The sale of the Laurin school resulted in an additional depreciation of approximately EUR 0,36 million and an impairment of EUR 0,65 million was made on the Lohikko service home. The total impact of these was approximately EUR 1,0 million, which directly affected the result, weakening it. The balance sheet has a total accumulated surplus of EUR 3.187.262,56. The city group's result was a deficit of EUR 145.000. The group has an accumulated surplus of EUR 9,9 million from previous financial periods. The group's loan portfolio is EUR 5738/resident.
The city's personnel expenses have remained approximately at the 2011 level. Operating expenses decreased by 0,6% from the previous year. The costs of purchasing services have increased by only 4,3%, or approximately EUR 2,0 million, during the same period.
Most significant investments
The city's investments totaled 8,7 million euros. These included, among others, the renovation of the sports center for 1,5 million euros, the renovation and modernization of the sports field for 1,3 million euros, and the expansion and renovation of the library for 1,8 million euros. 0,7 million euros were spent on the renovation of traffic routes.
The city's loan amount was 41,7 million euros. The loan is 3.601 euros per inhabitant. The city's strong investment pace will continue in the coming years, which will lead to an increase in debt.
– The city must anticipate investment needs and, without prejudice, examine different financing and implementation models as well as risk scenarios, states Hatanpää. Low interest rates allow for low financing costs, but the situation is exceptional and it is worth preparing for an increase in interest rates in the future. Investments also increase depreciation. Both factors weaken the result for the financial year and increase the pressure to increase the annual margin.
Economic policy and Satakunta's most attractive entrepreneurial city
On March 6.3.2017, XNUMX, the city council approved a new city strategy, the core of which is the slogan “Intelligence, art and well-being live with us.” The strategy emphasizes increasing the city's awareness, vitality and attractiveness, and a program is being prepared to develop these.
The central goal of the strategy is to make Kankaanpää the most attractive entrepreneurial city in Satakunta. In this regard, the city wanted to strengthen its own business services, which led to the closure of the regional business company. The shareholder agreement of Pohjois-Satakunnan Kehittämiskeskus Oy was terminated by mutual agreement of all owner municipalities. In the future, the business services of the city of Kankaanpää will be organized in such a way that they are as easily interconnected as possible for customers – companies, employees, and residents.
In line with its strategy, the city wants to be involved in implementing various collaborative projects in an innovative and agile manner. An example of this is the Smart Track project implemented with Vatajankosken Sähkö Oy in autumn 2017. The popular snow cannon track received modern and intelligent lighting using LED technology.
Population change and employment situation
The city's population decreased by 50, which is less than in previous years and relatively less than the average in Satakunta. The general recovery in business and industry and the positive structural change in Southwest Finland are also visible in Kankaanpää, and the employment situation has improved slightly. The unemployment rate was 10,8% at the end of the year (2016% in 13,3) and there were 568 (715) unemployed job seekers. Compared to 2015, the corresponding figures were 14,3% and 772. According to statistics, unemployment among people under 25 has decreased. At the turn of the year, there were 2016 people under 25 in 117 and 2017 in 94. There were 35 job vacancies at the turn of the year, compared to 20 a year ago.
Balanced economy
Mayor Mika Hatanpää thanks the city's elected officials and employees, whose decisions and work have contributed to the city's success. - Despite the surplus financial statements, keeping the economy in balance requires continuous measures, says the mayor. Our goal should be a positive result every year, and this year's budget has been prepared with a slight surplus. We must continue to search for and find measures to improve productivity.
Financial statement processing schedule:
City Council April 3.4.2018, XNUMX. The full agenda for the meeting can be found on the city's website:
www.kangaanpää.fi >> Home page link “Agendas and minutes”
Additional information:
Mika Hatanpää, Mayor, City of Kankaanpää
044 577 2210, [email protected]