The city's operating expenditure for 2024 is estimated to be EUR 1.1 billion. The annual balance is EUR 115.8 million and covers 90% of the planned depreciation. The profit for the financial year, excluding extraordinary items, shows a deficit of EUR 12.9 million.
The City Council of Tampere set the income tax rate for 2024 at 7.60 (currently 7.61). Tax funding (tax revenue + central government transfers) will decrease by approximately EUR 9.7 million compared to the current year's forecast. Municipal tax revenue is estimated to amount to EUR 447 million, property tax revenue to EUR 109.5 million and corporate tax revenue to EUR 87 million.
The Finnish Government is amending the Finnish Real Estate Tax Act so that the general real estate tax rate is determined separately for land and for buildings. As a result, the general property tax will increase from 1.25% to 1.30% for land. Other real estate tax rates will not change in Tampere next year, the Council decided at its meeting.
For buildings, the general real estate tax rate is 1.25%. The real estate tax rate for permanent residential buildings is 0.65% and for other residential buildings 1.10%. The real estate tax rate for an unbuilt construction site is 5.00%, 0.40% for non-profit organisations and 3.00% for power plants.
The budget prepares for an increase of EUR 80.4 million in interest-bearing debt. The loan per capita is estimated at EUR 3 594 at the end of 2024. However, given the large investment needs required by the growth of the city, the pressure to increase the amount of the city's loans will continue during the financial plan period.
The city's investment needs are high and will remain high until the end of the decade, but the level of internal financing will be lower than at present. Investment expenses (net) will amount to EUR 283.1 million next year, and without the impact of the Tampere Water Enterprise business transaction, EUR 231.3 million. The annual margin will be sufficient for self-financing a reasonable share of investments, and the internal financing percentage of investments will be 50 per cent without the sale of Tampere Water.
In 2024, approximately 62 per cent of the city's total investment expenditure (net) will be allocated to building projects and community construction. Building construction projects are the most significant use of investment funds (EUR 127.9 million). The budget is divided into new and additional construction and renovation projects. The package includes several new and additional buildings for schools and day-care centres as well as buildings for cultural and leisure services.
A budget of EUR 48.3 million will be spent on renovating the existing community structure and building new ones. Funds from the budget will be used, for example, for tramway projects, traffic arrangements and LED replacements of outdoor lighting and electronic systems.
Tampere, as a growing city, is investing in education and competence services. In the coming years, the city must take action to ensure that growth is socially, ecologically and economically sustainable. The city's growth will be boosted by sustainable initiatives, and significant changes will be promoted through development programmes.
The objectives of the budget activities are based on the objectives of the Tampere strategy council term. The new or refocused objectives prepared for the 2024 budget have taken into account, in particular, the strengthening of the well-being and health of the residents of Tampere. Achievement of these objectives is monitored in operational and financial reviews and financial statements.
The objectives are related to, for example, the perceived well-being of children and young people during the school day, the physical functional capacity of children and young people, anti-bullying measures and a sense of security, as well as the physical activity and hobbies of the residents of Tampere, the communality of residential areas, the willingness to help, and opportunities for participation of city residents.
In addition, consideration has been given to the international nature of Tampere, the availability of labour, the green and digital transition, the development of urban districts and the attractiveness of the city as an employer.
The text and expenditure increases proposed by Mayor Kalervo Kummola at the meeting were unanimously approved by the City Council for the 2024 budget package.
A decision was made to make a significant increase in expenditure in the section of the Cultural and Leisure Council: EUR 150,000 will be added to the implementation of the Poverty Programme, and EUR 50,000 will be added to low-threshold services for older people.
The Housing and Real Estate Committee section was supplemented by developing the planning and construction process for building construction investments. The aim is a resource-wise and economically sustainable operating method, which aims at good quality.
An emphasis was added to the section of the Municipal Board on the fact that the city is investigating the possibility of maintaining the diagonal parking at Hallituskatu and also carrying out diagonal parking at new locations.
A supplement was added to the section of the Public Transport Board according to which bus traffic in the Teisko area will be developed in a cost-neutral manner, taking into account the feedback received.
An emphasis was added to the section of the climate budget on the fact that the city's climate projects will be developed realistically and cost-effectively, for example by promoting the reuse and recycling of materials.
An addition was made to the Investments section that the city will introduce an investment cap in the future.
| Population 31 December 2024 | 257 000 inhabitants |
|---|---|
| Income tax rate | 7,60 per cent |
| Personnel | 8285 person-years |
| Annual margin | € 115,8 million |
| Income | € 1120 million |
| Expediture | € 1133 million |
| Result (without extraordinary items) | -12,9 million euros |
| Total investments (net) | € 231,3 million |
| Loan amount per resident | € 3594 |
