Determined to create a vibrant and strong Tampere

Mayor Kalervo Kummola points out that the strength of the community and extensive cooperation play a key role, when you want to find solutions and a new approach.

-It is essential that we prepare to revitalise the economy with diverse methods in the coming years. We will handle these matters with the cooperation that is typical of Tampere. We are determined to create a vibrant and thriving city for current and future residents. Together, we can ensure that Tampere remains strong, emphasises Mayor Kummola.

The balance in Tampere’s annual budget for 2025 carries a deficit of EUR 39.6 million. It includes one-off gains on the sale of assets amounting to EUR 70.2 million. The annual budget margin is EUR 95.1 million, and the total budget sum is approximately EUR 1.25 billion. Net expenditure will increase by 4.6 per cent compared to the 2024 forecast (EUR 31.1 million). The TE service reform is a significant contributor to the increase in net expenditure and, correspondingly, the capital gains carried over to 2025 will reduce the increase in net expenditure.

The income tax rate in Tampere will remain unchanged next year (7.60%), as will the rates on real estate tax. Municipal tax is estimated to bring EUR 475 million for the city. Taxable income is expected to continue to develop favourably with an increase of 6.1%.

It is estimated that EUR 82 million in corporate tax revenue will be paid to Tampere, i.e. the share will remain unchanged. The apportioned share of corporate tax received by the city for next year will be determined on the basis of tax years 2023 and 2022.

Tax funding (tax revenue + central government transfers) is expected to grow by 8.6 in 2025 (EUR 61.9 million). The total sum of central government transfers to Tampere is estimated to stand at approximately EUR 116 million. Of that sum, central government transfers for education and culture account for EUR 82.0 million, and compensation for tax revenue losses account for EUR 22.6 million. The TE service reform contributes EUR 49.8 million to the central government transfers for basic services in Tampere, but this will not cover the costs of the reform entirely.

Investment need remain significantly high

The city’s net investments remain at a significantly high level at EUR 225 million and the city’s loan portfolio is growing. The annual margin can cover 42% of the financing for investments, which means that the city will have to take additional loans of approximately EUR 121 million. The city's debt per resident is expected to be

EUR 3,966 per resident at the end of next year. The investment needs will also remain at a high level in the next few years, and the level of income funding will fall from the present.

Building construction projects and civil engineering account for EUR 130 million, or approximately 58%, of the city’s total investments.

-We must carry out these investments carefully to ensure that the City’s loan volume does not increase uncontrollably. The planning of the city’s activities and finances in the coming years must take the worrying economic outlook of the next few years into account, and it is necessary to refrain from new permanent increases in expenditure. The current service offering of the city must also be examined with a critical eye, says Juha Yli-Rajala, Group CEO of the City of Tampere.

-These difficult times require us to be flexible and ready to compromise. In the coming years, the city must do much more to ensure that our growth is socially, ecologically and economically sustainable, says Mayor Kummola.

In 2025, the investment budget for the city’s development programmes will total EUR 35.8 million. It is divided into the Five Star Centre Development Programme (EUR 28.1 million) and the Hiedanranta Development Programme (EUR 7.7 million). The investment funds of the development programmes are used for ground pre-construction and the construction of the urban environment. The removal of 0-fibre from the Hiedanranta area (approx. EUR 20 million) will mainly take place between 2025 and 2027 and is included in the Hiedanranta investments.

Bolstering teaching resources

In 2025, special attention will be paid to families with limited means in the education and training sector. In addition to pupils in lower secondary school, notebook computers will now also be given to 6th graders, which will support the development of digital skills and ensure that each pupil has the necessary tools in a modern learning environment.

-We are committed to promoting equality and ensuring that all children have equal access to services regardless of their family’s financial situation. Support measures will be specially targeted at the most vulnerable families, says Mayor Kummola.

Despite the economic pressure, the group sizes in basic education will remain unchanged in 2025, along with the establishing of more small groups. This way, the city can guarantee to support children and young people, providing them individual attention during the school day. EUR 6.2 million has been added to the Education Committee’s sector to bolster teaching and early childhood education and care resources.

The pilot on physical activity for children will also continue next year. The city will also ensure that outreach youth work continues to be an important part of supporting wellbeing for young people and preventing marginalisation.

Employment services to become part of the city's vitality-boosting efforts

Responsibility for TE services will be transferred from the central government to municipalities on 1 January 2025. The reform integrates employment services into the vitality efforts of municipalities. Its aim is to provide more efficient and accessible services for jobseekers, employers and entrepreneurs. The services are implemented in the Tampere Employment Area, which includes 16 municipalities in Pirkanmaa. In the responsible municipality model, Tampere will provide the statutory TE services.

Tampere’s contribution to the costs of statutory TE services, i.e. those of the employment area, in 2025 is approximately EUR 48 million (61%). The contribution does not increase the city’s net expenditure more than the calculated share of government funding that has been allocated for the TE reform, as part of the increase in expenditure (approx. EUR 13 million) is covered within the budget. The difference in the contribution to central government funding is partly due to the operating model selected for the cooperation area, in which the costs of local government pilot personnel are allocated to the employment area in addition to the central government personnel. With the exception of personnel transfers, the funding gap is approximately EUR 3.3 million.

In 2025, the costs of unemployment security for Tampere have been estimated at EUR 42.5 million, of which the government will compensate the share of the expanded payment liability (EUR 16.6 million). Depending on developments in the unemployment situation, there is a risk that the compensation allocated by the state is undersized in relation to the actual costs. The city bears a social responsibility

Immigrant integration services will also be transferred to the municipalities at the beginning of 2025 alongside the TE reform, and they will place an even greater responsibility on Tampere for the entire integration path.

-As the number of immigrants grows, the need for cooperation between the services and different sectors is comes to the fore. The retention power of Tampere over international residents is central to our vitality, says Mayor Kummola.

In 2025, the city will invest in housing advice and the prevention of segregation by strengthening the safety coordination of educational institutions and cooperation between authorities. Additions to the Poverty Programme, including food aid distribution, will continue at the current level.

A share of the budget has also been reserved for gatherings of older people. The number of assistants on service buses will remain unchanged so that those in need them can access everyday services despite difficulties with mobility of functional capacity.

-This year, we have seen a great deal of positive results from the experiment on free swimming hall services for older people, and the experiment will continue next year.

According to Mayor Kummola, it is important that the city supports ways to cope with everyday life and wellbeing as comprehensively as possible. 

The Group invests in the development of the urban environment

The municipality and its subsidiaries form a municipal group. On 1 January 2025, the city's last unincorporated enterprise will be incorporated and the operations of Tampere City Transport Ltd will begin. The limited liability company will be wholly owned by the city.

The Tampere City Group also invests significantly through its group organisations. The Group's investment level is approximately EUR 462 million in total. Most of the investments made by group entities are made by the companies that specialise in energy and the development of the urban environment (43%). Housing communities account for 33% of investments.

The most significant investments are made by Tampereen Energia, Tampereen Vuokra-asunnot Oy and Tampereen Vuokratalosäätiö. The largest individual investments are the renovation and expansion of Tampereen Virastotalo KKOy’s Central Office Building, the Sulkavuori central treatment plant of Tampere Seudun Keskuspuhdistamo Oy, the additional investments in the Naistenlahti 3 power plant of Tampereen Energia, and the tramway system of Tampereen Raitiotie Oy.

Tampere aims to be carbon neutral by 2030. The loss of biodiversity is a global problem that also has significant impacts on the local level. Tampere works together with large cities, the government and European partners to promote biodiversity.

Mayor Kalervo Kummola’s 2025 budget proposal is available in Finnish online at www.tampere.fi/talousarvio