Proposal for economic adaptation
Proposal for economic adaptation, sivun otsikko
Proposal for economic adaptation
Proposal for economic adaptation
Preparation of the proposals
A calculation of fiscal stress was produced by FCG Oy, based on which an adaptation target of EUR 20-25 million was set. The calculation of fiscal stress indicated that the City of Joensuu's finances will be in permanent deficit, and if no action is taken, the surpluses on the balance sheet will have been used up by 2026.
The process of identifying and calculating savings began in autumn 2023 with the assistance of FCG Oy.
Savings measures related to five themes are proposed:
- Service network, facilities and space efficiency
- Organisation of services and production methods
- Gaining and supporting revenue
- Content, quality and scope of services
- Asset management and ownership
Some of the savings measures have been published earlier. The summaries on this page and the attached PDF presentation include calculations updated on 8 April 2024. The calculations relating to some savings measures have become more accurate and may differ from those presented earlier.
Proposed adjustment measures
Proposal for economic adaptation - Service network, facilities and space efficiency
Proposal for economic adaptation - Organisation of services and production methods
Proposal for economic adaptation - Gaining and supporting revenue
Proposal for economic adaptation - Content, quality and scope of services
Proposal for economic adaptation - Asset management and ownership
Proposal for economic adaptation - Non-recurring items
Proposal for economic adaptation - Tax increases
Proposal for economic adaptation
Overview of adaptation
The total savings potential of all savings measures is EUR 18,766,000.
In addition, the potential for generating non-recurring revenue is EUR 6,820,000. This revenue will not reduce the annual need for savings.
Rather than having an immediate impact, the savings measures will take effect by 2030. The savings potential of EUR 18,766,000 will not affect the City's finances before that year.
The proposed savings measures will not be adequate to balance the City's finances during the adjustment period (2024–2026). Even if all the proposed savings measures were introduced, the City's finances would show a deficit of over EUR 13 million in 2026. In that year, the accumulated balance sheet surpluses from previous years would also have been used up.
Steering group’s position
The group in charge of the political steering of economic adaptation consisted of Chairman Jere Nuutinen (Centre Party), Seppo Eskelinen (Social Democratic Party), Heli Hjälm (National Coalition Party), Sari Koskinen (Greens ) and Jussi Wihonen (Finns Party).
The steering group adopted a position on the proposed adjustment methods on 8 April 2024.
Additional information and local service points
The steering group requested additional information on several proposed savings measures and proposed the establishment of a new type of local service points. These service points would provide a number of different services.
Schools
Regarding schools, the group proposed that Tuupovaara School should operate until 2030, after which year the trend in pupil numbers will determine the future of the school. In addition, the suitability of North Karelia College for the pupils of Niittylahdenranta and Suhmura as well as for early childhood education and care needs to be examined.
Early childhood education and care
The group proposed that early childhood education and care services should be provided in Tuupovaara, Niittylahdenranta and Uimaharju. Kaisla Day-care Centre would not be merged with the new day-care centre of Noljakka, and the location of the new day-care centre planned in Multimäki would be moved closer to Karsikko.
Swimming pools
The group proposed that a large swimming pool be built in Mehtimäki, after which the impact of the new pool on the utilisation rate of Rantakylä pool will be examined. A championship level spectator stand would not be built in the new swimming pool unless co-funding partners can be found.
Other adaptation methods
According to the steering group, the level of grants, the summer job programme and the scale of youth workshop activities should not be cut. The group’s view of cuts in evening and weekend services in early childhood education and care was also negative. The group proposed that the end-of-term festivities should be organised every year, that Joensuu City Orchestra should not be turned into a chamber orchestra, and that the membership fee of the Regional Council should not be reduced.
Collecting feedback
A round of six discussion events was launched on Tuesday, 9 April. These open events were organised in all Joensuu subregions, in Louhela hall at the Science Park, and at Nepenmäki School.
The event at the Science Park on Monday, 15 April, was be streamed on City of Joensuu’s YouTube channel: Watch the recording of the event (no English subtitles)
- 9 April at 18:00–20:00 Pyhäselkä School (Opettajantie 2, Hammaslahti)
- 10 April at 18:00–20:00 Suojapirtti in Kiihtelysvaara (Tulrompsuntie 2, Kiihtelysvaara)
- 11 April at 18:00–20:00 Tuupovaara youth centre (Urheilutie 10, Tuupovaara)
- 15 April at 18:00–20:00 Science Park, Louhela Hall (Länsikatu 15, Joensuu)
- 16 April at 18:00–20:00 Uimaharju School (Harjunraitti 9, Uimaharju)
- 17 April at 18:00–20:00 Nepenmäki School dining room (Kärpänkatu 7)
After the discussion events, the political groups will launch a debate on all savings measures. A proposal on economic adaptation will be submitted to the City Executive in May and June, and the Council will decide on the proposal at its meeting on 17 June.
Open feedback on adoptation proposals was collected using an online form. More than 700 responses were received. In addition, a survey of 1,000 Joensuu residents asked about the economic adjustment.