Rapidly growing city focuses on managing service and investment needs

The assessment report for 2023 by the Audit Committee of the City of Espoo is available in Finnish on the city’s website at espoo.fi/arviointikertomus.

In addition to uncertainties in the international economy and operating environment, the weakening of Finland’s economic and employment forecasts in 2023 made it difficult to predict the economic development of the City of Espoo. The city’s financial result for the accounting period, EUR 261.6 million, was higher than anticipated due to non-recurring items and better-than-expected tax revenue. As a result of the health and social services reform, Espoo’s increased reliance on central government transfers and the upcoming reforms of central government transfers and employment and economic development services (TE services) create significant risks for the city’s funding base. The service needs of the growing population increase costs in many of the city’s operations. The EUR 3.9 billion loan portfolio of the Corporate Group of Espoo and the investment pressures in the coming years highlight the need to critically examine the development of the group’s economy and maintain a balance in order to preserve Espoo’s vitality and secure services for residents.

Annual performance targets that bind the City Council are derived from the goals for the council term described in the Espoo Story. According to the assessment of the Audit Committee, nine of the 26 performance targets set for the city were met, five were partially met, eight were not met, and four could not be assessed. The two performance targets set for the public utility were not met. Of the group entities’ 31 performance targets, 20 were met, eight were partially met, and three were not met. The Audit Committee emphasises that performance targets must simultaneously be ambitious, effective and achievable through the city’s own measures. Some of the performance targets have been set in such a way that their achievement also requires efforts by Espoo-based companies and the entire Espoo community, in addition to city sectors. This is well founded in order to safeguard Espoo’s vitality and competitiveness but challenges the assessment of the sufficiency and success of the city’s own measures to achieve the goals.

At the end of 2023, the city had 10,957 employees. During 2023, the number of staff increased most in the Growth and Learning Sector to meet the city’s service needs. In 2024, the number of staff is expected to grow by 150 employees, especially due to the need for additional staff in early childhood education and schools to respond to the growing number of children. At the same time, the availability of labour has decreased particularly in the Growth and Learning Sector, which hinders the provision of high-quality basic services. The city must continue and improve its development measures to attract and retain staff.

In the Growth and Learning Sector, assessments focused on employee attraction and retention development, early childhood education services and their quality, support for learning and inclusion in pre-primary and basic education, and the support provided for pupils studying Finnish or Swedish as a second language. The number of children needing support in early childhood education and basic education has grown in Espoo, and local differences in the need for support and school readiness have been identified. Children must be provided with timely and adequate support. Inclusion must not be used as a means of saving money. Instead, sufficient human and other resources must be guaranteed for education to secure conditions for learning and a suitable learning environment for all pupils. Instruction in Finnish or Swedish as a second language (so-called S2 instruction), in cooperation with homes, mother tongue instruction and other subjects, helps pupils develop their linguistic and cultural identity in the culturally diverse city. The Audit Committee considers it a good solution that S2 instruction and instruction in Finnish/Swedish are provided simultaneously, as this has produced good results from the perspective of both learning and teachers’ workload.

The 2023 assessment programme also covered the city’s security and preparedness, corporate governance and two group entities, which were the joint municipal authority HSL (Helsinki Region Transport) and Länsimetro Oy. Other areas of assessment included the Finnish model for leisure activities, the Espoo Hobby Path, cultural and exercise services for the elderly and special groups, youth services, promotion of youth employment, and Ohjaamotalo activities. In addition, assessments were carried out on biodiversity, environmental health care, the accessibility and safety of city-owned buildings and the built environment, and the promotion of outdoor and neighbourhood exercise facilities. The assessments and the related conclusions and recommendations can be found in the assessment report (available in Finnish and Swedish).

For further information, please contact Paula Viljakainen, Chair of the Audit Committee, tel. +358 50 5727497.

The assessment report was submitted to the Chair of the City Council on 25 April 2024.