Debt fell by EUR 18 million
The City of Turku’s financial result produced a surplus in 2011
Last year's financial statements showed a EUR 6.7 million surplus. This better than expected result was due to growth in tax revenues and capital gains, as well as the reorganisation of operations.
Turku renewed its operations strongly in 2011. During the year corporatisation projects in the environmental sector were implemented, Turku’s operational model was reorganised and the Turku region’s public transport structure was developed. Additionally, measures to cope with the restructuring in the maritime industry paid off.
– The measures taken and the active cooperation in combating the structural changes in the maritime industry have achieved positive results; restructuring reached a turning point in 2011. During the year, Turku invested significant resources to ensure the competitiveness and attractiveness of the region.
– Regionally, there were significant advances in co-operation. The final report on the regional structure model was completed, a regional public transportation organisation was established, and a regional energy solution was reached. Furthermore, there were substantial developments in the national Urban Policy, including the beginning of work based on the letter of intent signed with MAL.
Money raised from taxation amounted to EUR 963 m, which increased more than expected (4.2 %) on the previous year. The increase totalled EUR 39.1 m, but it was not enough to cover the increase in net expenditure. The increase in net expenditure was 9.4 m euros more than the funding raised by taxation. Proceeds from the sale of property amounted to EUR 28.8 million by the end of the year, which was a growth of EUR 3.9 million over 2010.
Total debt was reduced
Assets decreased by EUR 89.8 m. Despite the reduction, Turku’s cash reserves remain strong at EUR 117.6 m. The city's total debt was reduced by EUR 18.1 million, and no new long-term loans were taken.
Two boards exceeded their budget allocation
Turku’s operating expenses amounted to EUR 1,246.2 billion (EUR 1,188.1 billion in 2010); an increase of EUR 58.1 m (+ 4.9%) over 2010. A greater demand for services resulted in increased net expenditure of 4.7% on social and health care services, while early childhood and basic education costs rose by 5.4 per cent. Operating income amounted to EUR 306.2 m (EUR 296.4 m in 2010). Both the Health Care and Social Services Board and the Early Childhood Education and Basic Education Board exceeded their budgets.
– The strong growth in spending on health care and social services and early childhood education and basic education is justified as the demand for their services resulted in unforeseen increases. However, such a large increase in expenditure is not possible in the coming years, which is why the city has launched a review of the organisation of early childhood services, and aims to accelerate structural changes in social and health care services, says Mayor Randell.
Operational revenue increased by EUR 9.8 m (+3.3%). Operating subsidies during the period (net expenses) increased by EUR 48.5 m (5.6%).
The investment rate remained high
Turku’s capital expenditure totalled EUR 112.9 million last year, which was EUR 9.6 million less than had been estimated in the budget. However, the investment rate is still high in relation to internal financing and these investments ensure the preservation of property values, the provision of the city's services and its continued development.
Capital of Culture year boosted the business sector
Turku’s memorable European Capital of Culture year was successful. The total number of visitors exceeded the two million target and there were more than 6,000 events. Logomo exceeded its visitor target of 150,000 by 100,000 visitors. Registered overnight stays rose by 6.2% (compared with 3.9% in Finland), resulting in an increase of EUR 3.7 m for the hotel and accommodation sector in Turku over the 2010 figure.
Turku’s recent financial statements (in finnish)
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