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City Government submits 2023 consolidated annual financial statements to the City Council

City Government submits 2023 consolidated annual financial statements to the City Council

The Tallinn City Government has submitted the 2023 consolidated annual financial statements for approval to the City Council. As of the end of last year, the city's consolidated group achieved a result of 154 million euros, with a balance sheet total of 2.34 billion euros and net assets amounting to 1.82 billion euros.

The 2023 consolidated annual financial report of Tallinn was audited by KPMG Baltics OÜ, which issued an unmodified statutory auditor’s report confirming that the city's financial reporting is reliable and reflects the city's financial and economic position accurately and fairly.

Mayor Jevgeni Ossinovski affirms that Tallinn's financial position remains strong. "Our recurring revenues exceed our fixed costs, and our debt burden remains low. Nonetheless, we are seeking opportunities for more efficient management in the new supplementary budget process to redirect freed-up funds towards additional financing for education and social services. The city’s investment plan is also ambitious, focusing on substantial investments in the reconstruction of educational institutions, improvement of urban spaces, and the next step in renewing our public transport fleet," Ossinovski highlighted.

As of December 31, 2023, the financial position of the consolidation group as a whole was strong. Liquidity and short-term financial obligations ratios were favorable, confirming that the units within the consolidation group are capable of meeting their obligations to creditors and servicing their loans over the next 12 months. The net debt of the consolidation group was 178 million euros, representing 12.9% of primary operational revenues. The City of Tallinn consolidation group encompasses 20 administrative bodies, their 247 managed institutions, 8 companies, and 10 foundations under the city's control, with over 20,000 employees working within the group in 2023.

The balance sheet total for the city as a unit of the consolidation group was 1.91 billion euros as of the last day of 2023, with net assets amounting to 1.48 billion euros, and the city’s result for the year was 124 million euros. Last year, the city's institutions employed over 13,000 workers.

The city's operational revenues for 2023 totaled 1.063 billion euros, of which tax revenues accounted for 66.5%, grants received 23.7%, and income from sales of goods and services and other revenues together 9.8%. Operational revenues increased by 12.4% or 117 million euros compared to the previous year, with the most significant growth in tax revenues and grants received. The city's operational expenses totaled 1.016 billion euros, which was 10.6% or 97 million euros more than in 2022. The largest increases were in labor costs and other operational expenses.

In September 2023, the international rating agency Fitch Ratings confirmed the city’s credit rating at A+ with a stable outlook, one notch down due to the downgrade of Estonia’s country rating.