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The City of Turku controls 67 subsidiaries, of which 61 are consolidated in the consolidated financial statements. Of the consolidated subsidiaries, three are foundations and 27 are housing and real estate companies. There are 29 consolidated associated entities and three joint municipal authorities. Three subsidiaries and five associated entities have been consolidated through the sub-group of the Joint Municipal Authority of the Hospital District of Southwest Finland.
At the end of the financial year, the balance sheet total was EUR 1,887.6 million. The decrease compared to the previous year was EUR 40.1 million (2.1%). The surplus for the financial period increased equity by EUR 18.2 million (2.2%). The equity ratio increased by 1.8 percent points, being 46.0% at the end of the year (44.2% in 2021 financial statements). A level that exceeds 50% can be regarded as the general target level for municipal economies.
The city’s liquidity remained good throughout the year. At the end of 2022, the city’s cash reserves amounted to EUR 42.9 million (EUR 83.2 million in 2021 financial statements), not including investments in the city’s own funds. Cash reserves decreased by EUR 40.3 million in 2022. The cash reserves consisted only of cash, deposits in a payment transaction accounts and other deposits. During the year, the cash reserves were EUR 11.2 million at their lowest and EUR 172.2 million at their highest. On average, the cash reserves stood at EUR 70.5 million.
The city's investment expenditure was EUR 121.0 million in 2022 (EUR 140.8 million in 2021). A financing share of EUR 3.2 million (EUR 2.1 million in 2021) was recorded for the investment targets. Capital gains totalled EUR 43.6 million (EUR 33.8 million in 2021). The investment expenditure fell below the budget of EUR 55.0 million. The financing shares exceeded the budget by EUR 0.2 million and the capital gains by EUR 5.4 million.
The operating cash flow was positive by EUR 48.8 million (67.3 in 2021 financial statements) The decrease of internal financing was affected by the weaker development of the operating margin compared to the previous year, which was not fully compensated for by the growth in tax funding.
The internal financing adjustment items correct the capital gains from non-current assets, which are presented in the investment cash flow – as well as losses amounting to a total of EUR 28.1 million.
Central government transfers totalled EUR 339.7 million, and they amounted to EUR 13.4 million (4.4%) more than in the previous year, most of which was due to compensation for tax losses and a reduction of EUR 2 million in the recovery of tax deferrals. The instalments are not central government transfers, but they are paid in connection with central government transfers.
Determination of Turku’s tax revenue
Basis for tax revenue | 2018 | 2019 | 2020 | 2021 | 2022 |
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Income tax rate (%) | 19.50 | 19.50 | 19.50 | 19.50 | 19.50 |
Property tax rate (%): |
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In addition to the shortage of raw materials, rapid inflation, rising interest rates and Russia’s war of aggression, the operating environment of the Turku economic area was strained by the coronavirus pandemic that has continued for three years already. Despite this, the financial period ended with a surplus of EUR 18.2 million. The positive revenue development was influenced by better-than-expected development of corporation tax and municipal tax revenue as well as revenue from the transfer of assets.
The amount of labour used in person-years by all personnel during the period 1 January – 31 December 2022 was 10,675.9. The use of labour in 2022 was 10,362.0, excluding employed persons, pupils and trainees, participants of relocation experiments and disabled persons in subsidised work.
The turnover data specific to the Turku sub-region produced by Statistics Finland will be available until the end of September 2022. In the Turku sub-region, turnover and personnel numbers developed positively in the third quarter of 2022 in all sectors, with the exception of maritime industry turnover. Turnover increased 12.4% from the previous year. Turnover increased by 23.6% in industry, by 12.3% in services, by 8.7% in wholesale and retail, and by 8.0% in construction. In the third quarter, the turnover of the maritime industry decreased by 15.3% from the previous year.
The recent years have been exceptional. The direct impacts of the coronavirus pandemic have been smaller than expected. However, the coronavirus pandemic has increased uncertainty regarding continuous services. The governmental policy on full compensation of the effects of coronavirus has been important, and from the city's point of view, the policy should also be adhered to in the future. As the direct impacts decrease, an effort must be made to assess indirect impacts, especially with regard to education, teaching and recreation services.
The social operating environment was again subject to major changes in 2022, mainly due to the effects of the Russian war of aggression launched on 24 February. Safety, increased costs of construction and living and support for Ukraine and Ukrainians have been at the core of the operations throughout the year.
The agreement was signed on Monday 28 January 2019 by EIB Vice-President Alexander Stubb and Mayor of the City of Turku Mi
The municipal investment programme includes the construction of two multipurpose education centres, Syvälahti and Yli-Maaria, and two day care faci