Next year’s budget proposal for the economically strapped City of Helsinki calls for keeping the municipal income tax and the property tax at its current levels.
There are also no plans to raise ticket prices on the city’s public transport system.
"The city’s finances are balancing out", said Helsinki Mayor Eeva-Riitta Siitonen when she presented the draft budget on Friday. It is her last budget before her retirement next year.
Although the overall assessment was fairly optimistic, Siitonen warned that some pitfalls remain. She emphasised that to balance Helsinki’s budget it is important that the state does not place any more burdens on the city.
The demographic structure of Helsinki's population is changing. The overall number of residents is declining slightly, and the average age is increasing. Older residents need more public services. At the same time there are fewer children in the city, and the number of public schools and day care centres is set to be cut.
Although the worst of the financial crisis seems to be over, the budget will still be very tight. Decisions of the Organisation Committee to increase efficiency are to be put into effect next year as well. The brunt of the moves will be borne by city employees, who will be expected to work more efficiently than before.
In spite of the measures to curb spending, Helsinki’s running costs are expected to grow by four percent over this year’s figure. The increase is attributed to the implementation of a law guaranteeing patients medical treatment in the public health system in a minimum amount of time, and to increased costs in the city’s social welfare department.
