Espoo invests in growth

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2018-04-03 11:03
People at Matinkylä metro station
Photo: Jyrki Vesa

The growing Espoo is developed financially, ecologically, socially and culturally so as to maintain Espoo’s position as Europe’s most sustainable city. This year, EUR 280 million will be invested in the development of  Espoo. In the next ten years, the number will rise to EUR 2.7 billion. The investments include the Jokeri Light Rail, the metro development corridor, and the traffic route and public transport projects required by the development of regional centres and the urban structure.

The municipal tax is frozen at 18% for the next year, and real property tax will remain at the 2017 level. The estimated tax income in 2018 is EUR 1,495 m, which is 1.7% higher than the forecast for 2017.

The annual balance will rise to EUR 191 million, which, however, will not be enough to fund the large-scale investment plan. By the end of the period 2017–2021, the annual balance will rise to the targeted EUR 270 million. Espoo’s operational economy’s result and income funding capacity will improve throughout the financial plan period. In 2018, Espoo’s net investment will be EUR 287 million and the Corporate Group of Espoo’s net investment will be EUR 700 million. Espoo’s loan portfolio continues to grow and is due to exceed the one billion mark by 2020. During the economic plan period, the loan portfolio of the Corporate Group of Espoo will rise to EUR 4.6 billion and the so-called tax-funded adjusted loan portfolio will rise to EUR 3.4 billion. The growth of the adjusted loan portfolio will stop in 2020, but the loan portfolio will not start to decrease until after 2022.

In the next ten years, the investment in school and day nursery facilities by the means of operational economy and investment economy will increase to more than EUR 900 million in total.