Mikkeli’s Mayor Janne Kinnunen unveils budget addressing energy impacts and debt management in Finland

Mikkeli’s Mayor Janne Kinnunen has introduced a new budget that addresses the impact of last year’s significant energy transactions for the first time. Despite improvements, the city will still need to take on additional debt. Mikkeli alleviated its financial situation by selling a minority stake in South Savo Energy to foreign investors, enabling the indebted municipality to project a surplus of €147 million for 2024. The funds from this sale were recognized earlier this year, helping the city reduce its debt by €100 million, thus avoiding a crisis intervention from the ministry.

However, even with asset sales, Kinnunen’s budget proposal suggests acquiring an additional €13.5 million in debt. The projected operating expenses for the city next year will reach €200.5 million, exceeding revenues by €5 million. The overall debt is currently estimated at €251.8 million. The city does not feel pressure to raise taxes at this point, and Kinnunen indicated that the long-term goal is to decrease the tax rate from the current 9.4%.

Mikkeli is focused on internationalization, which is reflected in the planned closure of several daycares. Notable developments include the establishment of a NATO command post next to the Army Headquarters at Karkialampi, aiming to invigorate the region. Integration of international residents, including students, is a key priority, alongside increasing investments in green energy transitions.

The city council will consider Kinnunen’s budget proposal in a meeting scheduled for November 11.