The City’s finances

The goal of the assessment

The assessment examined the state of Municipal Helsinki’s and its Group's finances in 2024 and their development from previous years. Additionally, it was assessed whether the objective of limiting the increase in operating expenses and the objective related to the financing of investments set in the City Strategy were achieved. The finances of the state-funded Social Services, Health Care and Rescue Services Division were examined separately.

Conclusions

Municipal Helsinki’s finances were better than budgeted, with a surplus of EUR 334 million. However, unlike in the previous two years, the increase in operating expenditure did not remain within the limits set by the principle of responsibility of the City Strategy 2021–2025. The target for cash flow from operations and investments for investment financing was met in line with the strategy. In 2024, the City was able to finance its investments almost entirely through internal financing. The amount of long-term debt has been successfully reduced, but off-balance-sheet rental liabilities and, in particular, contingent liabilities issued to Group entities have been increasing for several years. The loan portfolio of the Municipal Helsinki Group continued to grow. Like in the previous year, the funding of the Social Services, Health Care and Rescue Services Division was balanced.