The city's operating expenditure for 2025 is estimated to be €1.09 billion. The annual balance is €95.1 million, which covers 70.6% of the planned depreciation. The city will carry a deficit of €39.6 million.
The City Council of Tampere has confirmed the income tax rate for 2025 at 7.60. Tax funding (tax revenue + central government transfers) is estimated to increase by approximately €61.9 million compared to the current year's forecast (8.6%). Central government transfers are technically boosted by the imputed funding of approximately €50 million, due to the TE reform. However, the overall development of central government transfers will not be sufficient to fully finance the reform and a growing city’s basic services, as central government transfers will only increase by €33 million as a whole.
The Tampere Region Employment Area, which will be established in 2025, comprises 16 municipalities in Pirkanmaa. The costs covered by the co-operation items total about €78.9 million, of which Tampere contributes about €48 million. In addition, €16.6 million has been allocated to the Tampere budget to increase the overall responsibility for unemployment security. In the future, the development of the unemployment situation will have a significant and rapid impact on unemployment security expenditure, for which municipalities are responsible. The total responsibility for unemployment security is estimated to stand at approximately €42.5 million in 2025.
No changes to real estate tax rates
In its meeting, the City Council also confirmed the real estate tax rates: they will not change for Tampere in 2025. The general real estate tax rate will be 1.25% for buildings and 1.3% for land. 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.
In 2025, Tampere is forecasted to receive €475 million in municipal tax revenue, €82 million in real estate tax revenue and €111 million in corporate tax revenue. The tax revenues are not sufficient to cover the city's investments, wherefore the budget prepares for an increase of €120.6 million in interest-bearing debt. The city is taking out a loan of a maximum of €164 million, which may grow its total debt to approximately €1.04 billion. The loan per capita is estimated at €3,966 at the end of 2025.
Revenue from the capital gains is estimated at €70.2 million. This estimate includes capital gains from the sale of both land and buildings as well as shares in companies. Assets are sold to finance investments and curb the growth of the city’s debt. Land use compensations are estimated at €5.0 million.
Most significant investments in schools and daycare centres
The investment expenditure in Tampere’s annual budget for 2025 is €226.9 million. Net investments amount to €225.0 million and the internal financing rate of investments is 42%.
In 2025, the most significant investments consist of net investments in construction projects (€85 million), projects of the Committee for City Planning (€45.0 million) and the Five Star Centre development programme (€28.1 million). Of the total construction budget, €48.3 million will be spent on early childhood education and care as well as pre-primary and basic education facilities. These include significant new and additional construction of schools and daycare centres. €19.8 million has been reserved for cultural and leisure services facilities.
The majority of the Committee for City Planning investment budget is used for the renovation of existing urban structures and new construction (€28.9 million). Committee investments will also be targeted at special structures, traffic arrangements and exchanging the LED lights of electronic systems and outdoor lighting. €3.7 million has been reserved for tram projects.
Tampere City Strategy guides the objectives
2025 is the last year of the Tampere City Strategy. The objectives of the budget activities are based on the objectives of the strategy council term. Objectives are set on the city level and separately for the committees and, guided by the strategy, also for the Group organisations. The details of the budget will be specified in the committees and Central Administration's annual plans, which are approved in December.
In 2025, the objectives will be related to, among other things, the smooth running of the connections between the city and the wellbeing services county, the successful implementation of the TE reform, and ensuring smooth everyday work in the implementation of infrastructure investments. The objectives are also linked to the successful launch of the Finnish-English Bilingual Study Programme in secondary education, the revival of industry, as well as to attracting investments in the green and digital transitions.
The objectives that remain from 2024 emphasise, among other things, the promotion of the wellbeing and health of Tampere residents, improving employment, diversifying the production of housing, strengthening the experience economy, sustainable urban development, and securing the availability of labour. Objectives related to the city’s finances, wellbeing at work for city personnel, the attractiveness of Tampere as an employer, and digitalisation will also remain.