Oulu’s Mayor published his budget estimate for 2025 – Oulu invests in the future
Oulu’s Mayor Ari Alatossava has published his budget estimate for the city of Oulu for 2025 and an Action Plan for 2026–2027.
The budget estimate for 2025 shows a deficit, but the financial period of 2027 is estimated to show surplus if the city’s tax income continues to develop positively and the city’s expenditure development is realized as planned. The budget estimate presentation includes fiscal efforts for 40 million € in the years 2025–2027.
Statutory employment services will be transferred to the municipality from the state on January 1, 2025. The change is smaller than the social and health service renewal, but its significance is large. Employment services and a larger share of unemployment costs will be the responsibility of municipalities in the future. The city of Oulu acts as the responsible municipality consisting of 11 municipalities in the employment region of Oulu.
Loans to finance investments – real estate tax rates will rise
The city of Oulu’s budget estimate for 2025 shows a deficit of 41 million €. The wellbeing services county change will still affect the tax funding of municipalities in the coming years. Tax income is estimated to rise in 2025 and will turn the city’s results positive in 2027.
The city of Oulu’s investment costs are significant in the coming three years, a total of 600 million € and the city is forced to take a loan for the investment costs. Net borrowing for 2025 is 185 million € and the total loan by the end of 2025 is 4 071 € per inhabitant. The city’s property will be examined simultaneously, and possible sale profits can be utilized to decrease the amount of loans during the budget estimate period.
The Mayor’s budget estimate presentation includes a raise in real estate tax rates. The proposed real estate tax rate raise would increase the city of Oulu’s real estate profits during the budget estimate period 2025–2027 by approximately 21 million €. The municipal tax rate of 7,90 % is not proposed to change.
Oulu invests especially in children and young people. Over half a billion € per year will be invested in early childhood education, primary education and youth services and the majority of real estate investments will be daycare and school investments. The city invests hundreds of millions of euros in the coming years in the services of all citizens. The largest investments that will be completed in 2025 are the Linnanmaa Swimming Pool, the City Library’s renovation, and the Tuira Community Centre. Streets, parks and infrastructure will be enhanced and constructed with almost 100 million € annually.
The coming years will be filled to the brim with events. The Housing Fair and the Kuninkuusravit held in 2025 will bring tens of thousands of visitors to Oulu. During these large events, there will hustle and bustle in the city.
2026 will be special since Oulu will be the European Capital of Culture.
The Mayor’s presentation will proceed for processing to the City Board and to be decided on by the City Council
The Mayor’s presentation proceeds for processing in the City Board’s budget discussion on October 17–18. The City Board’s budget estimate processing days are November 5 and 12. The City Council’s budget processing starts on November 25 and the Council will decide on the budget estimate on December 9, 2024.
See the recording of the presentation here (YouTube) (In Finnish)