City Council ratified Vantaa’s budget on November 16 - focus on real-estate tax

The sum total of Vantaa’s operational economy for next year will amount to €1 762 million. The amount of investments will rise to €147 million. The estimated amount of tax revenues is €1 089. The real-estate tax was increased as proposed by the city executive board. The amount of loans will be kept within the council term goal, that is, below €1 billion.

The negative impacts of the coronavirus epidemic on Vantaa’s finances is estimated to amount to €80 million. The government has diminished the impacts by supporting municipalities. The negative impacts on Vantaa’s finances will continue in 2021 and, according to preliminary estimates, amount to at least €90 million. The government’s coronavirus support for municipalities in 2021 is significantly lower than this year.

Vantaa has outlined its preliminary productivity goal for 2021-2023. The annual margin will be increased, so that it will be €120 million in 2023, when the operational economy would be balanced. This requires annual measures amounting to €30-40 million, half of which should be of a permanent nature. Reaching the goal requires significantly bigger government support in order to compensate municipal finances for the negative impacts caused by the coronavirus epidemic in coming years. The city's own actions play the main role in balancing. The starting point is that employees will not be laid off or fired.

In 2021, departments’ measures will improve the operating margin by €8 million. Increased real-estate tax will generate around €18 million to Vantaa, whereas increased land-sales will bring an additional €4 million. Sales of other property will increase to €10 million.

Vantaa's population growth is projected to keep on rapidly growing regardless of the coronavirus epidemic. The pressure caused by population growth and aging to service production and investments will, thus, remain strong. The number of children in day-care centers and schools will increase by 640 children. By estimate, 80 senior citizens will need a place in enhanced housing.

Vantaa is home to relatively many industries sensitive to economic fluctuations such as the airport, logistics services and tourist and restaurant businesses in the vicinity of the airport. Coronavirus restrictions have strongly targeted these businesses, which is seen in Vantaa’s unemployment statistics.

Recovery investments

Investments will be kept on a high level, so that they bring recovery effects to Vantaa. Next year, 10 day-care centers will be built. €35 million will be spent next year on building schools and day-care centers. €36 million has been reserved for renovation, of which €5 million has been budgeted for indoor-air repair work. Around €3 million has been budgeted for repair and change of rental premises and condominiums.

€40 million has been reserved for municipal engineering, streets and parks. The annual reservation for basic repair of bridges amounts to around €1 million. Around €1 million has been reserved for improving the lighting of the old street network and park areas.

Vantaa light rail will be an investment into the future, generating investments, jobs and wellbeing by enriching the urban development along the route. The government has, in the MAL agreement, committed to contributing 30% to Vantaa light rail’s planning costs.

Stage 3 of Ring Road III will commence as a joint project with the state, which increases additional lanes in the Askisto and Vantaankoski-Pakkala parts. Leppäkorventie’s pedestrian and cycling route will be built.

Read the entire budget in Finnish online at: www.vantaa.fi/talous.

City Council ratified the following local detailed plans:

A major unit will be added to Petikko, Petikontie 23 retail unit and parking lots to Kaakelinkaari 2 B’s block.

Vapaala, Varisto, Myyrmäki, Kelokuusenkuja: building of 220 housing units in the block between Kelokuusenkuja and Kelokuusenpolku.

Building a day-care center, two car parks, neighborhood recreation and park areas in addition to residential blocks in Kivistö, Kivistöntähti.

The underused office building in Myyrmäki, Kilterinkuja 2 will be replaced by apartment buildings.

Published: 20.11.2020 
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