The city of Äänekoski balances its finances with 4,5 million euros
The common goal is for the savings to be reflected as little as possible in the residents' everyday life
The city of Äänekoski is planning savings of 4,5 million euros for next year. Decisions on measures to balance the economy are made by the city council during the rest of the year. The goal is for the result in 2024 to be balanced.
Considerable savings lie ahead, as the need to save is almost 10 percent of the city's entire annual budget of 51 million euros. The economy needs to be balanced so that the city can survive the coming years.
Permanent savings are needed for the city's operations, because Äänekoski's state contributions will drop sharply. State contributions will decrease by up to 5,3 million euros from last year's level. Such a significant decrease in the government shares of the city of Äänekoski was caused by covering the hospital district's deficits and the very strong increase in the city's social and health expenditures in 2022.
Savings are sought in every industry
- The common goal is for the savings to be visible as little as possible in the residents' everyday life, but there are also difficult decisions ahead. The city has taken saving measures immediately and e.g. the hiring of temporary employees, trainings and equipment purchases will be reduced already this year, city manager Matti Tuononen says.
The selection of ways to balance the economy has been discussed with the Äänekoski trustees since the spring, and two separate evening schools have been held on the topic. Savings are sought in every industry and all operations are made more efficient. The stabilization plan does not include personnel layoffs.
Savings of around 890 euros have been planned for teaching and education. No school closures are planned. However, the aim is to combine teaching and children's groups as much as possible - however, so that the number of students in the classes remains reasonable. By reducing the number of children and changing group sizes, savings of around 000 euros can be obtained. In addition, the voluntary teaching offered by Äänekoski will be reduced. There are also other smaller savings measures on the teaching and education savings lists.
Savings of around 290 euros have been planned for the cultural and sports activities next year. The cuts are aimed at the entire industry's equipment, the network of outdoor sports venues (e.g. skating rinks and ski slopes), the associations' operating and target grants, the library's material appropriations, and the event and marketing appropriations of cultural activities. Entrance fees to swimming pools and gyms have already been increased since early autumn as part of the economic stabilization program. In addition, cost-saving measures concerning the entire city and personnel are targeted at the industry.
Savings of approximately 380 euros have been planned for the energy unit next year. Employment legislation is changing, which causes significant changes in employment management and the vitality unit: for example, wage support employment will be cut by a total of 000 euros over two years. In addition, various cooperation agreements, workshop activities, subsidies and municipal allowances are partly savings targets.
Savings of 610 euros have been planned for the urban construction project. The city tries to sell properties that are not needed in the city's own operations or that are loss-making. In addition, e.g. the rental prices of the premises will be increased, district heating consumption will be reduced, and street lighting costs will be saved.
The city's investment level as a whole is calculated and planned investment projects are moved to the coming years. Construction projects already underway will be completed as far as possible.
Group companies also participate in cost-saving measures. Savings of 300 euros have been planned for the cooperation between the city of Äänekoski and Äänekoski Kiinteistönhoidon. An additional revenue requirement of 000 euros has been assigned to Äänekoski Energia.
The industry-specific savings targets include savings of 1,1 million planned for personnel expenses. Personnel decreases when new employees are not hired to replace those who retire and resign. Job descriptions and places of delivery may change. In addition, savings are obtained when e.g. fixed-term contracts are reduced and personnel benefits, training and travel costs and equipment purchases are reduced. Staff layoffs have also been discussed. Personnel costs will also be reduced in 2024 by the reduction of personnel side costs by approximately 0,6 million euros. Overall, personnel expenses will decrease by approximately 1,7 million euros (-4,6%) in 2024.
The property and income tax increases presented as a measure to balance the economy would result in a total of approximately 1,8 million euros in additional income.
Achieving economic balance would require the implementation of all savings plans and tax increases, unless new means for savings or additional income are found. The Äänekoski city council will decide on taxes no later than 13.11.2023 November 11.12 and on saving measures by XNUMX December. at the meeting in connection with the budget processing.
For more information:
Mayor Matti Tuononen, 040 572 3239, matti.tuononen@aanekoski.fi
Financial manager Tapani Hämäläinen, 0400 115 256, tapani.hamalainen@aanekoski.fi
News published 5.10.2023