The city’s finances

The goal of the assessment

As of 2023, funding for social services, health care and rescue services in the wellbeing services counties and Helsinki is based on general state funding, which is means-tested according to population and other factors. The Helsinki City Council still retains the power to decide how the funding is allocated. The assessment examined the financial situation of Municipal Helsinki and the City Group in 2023 and developments from previous years. It also evaluated whether the City Strategy’s objectives for limiting the growth of operating expenses and financing investments had been met. The finances of the Social Services, Health Care and Rescue Services Division were examined separately.

Conclusions

The finances of Municipal Helsinki turned out better than expected. Growth in operating expenses remained within the limits set by the 2021–2025 City Strategy. The target for cash flow from operating and investing activities related to financing investments was also achieved in line with the strategy. Key figures show that the restructuring of social services, health care, and rescue services carried out from the beginning of 2023 had little impact on the financial situation of the City of Helsinki. The amount of long-term debt has decreased, but off-balance-sheet rental liabilities and guarantees to Group companies have been increasing for several years. Funding for social services, health care and rescue services was balanced.