Gaining and supporting revenue
Gaining and supporting revenue, SIVUN OTSIKKO
Gaining and supporting revenue
Economic Adaptation 2024 – Gaining and supporting revenue
In addition to tax income and central government transfers, the city receives income by collecting fees for the services it provides. Such income includes, but is not limited to, water fees, early childhood education fees and fees collected for sports and cultural services and the use of public transport.
Income received by the city also includes certain grants, such as external project financing. In addition, the city receives income from the rental of the premises and land it owns and from the sale of its assets (e.g. income from the sale of timber).
Compensation received from other municipalities for services organised by the city for them, such as library and public education services, is also recognised in income.
Economic Adaptation 2024 – Gaining and supporting revenue, Fees collected by the City of Joensuu in 2022
Economic Adaptation 2024 – Gaining and supporting revenue, OSA 2
Fees as part of economic adaptation
As part of the economic adaptation process, the level of fees collected by the city for services is also examined in addition to the tax bases. Some of the fees are statutory, and the level of the fees cannot be freely determined by the city itself. For example, the level of early childhood education fees is regulated by law. The maximum amount of a parking fine, for example, is also set out in the law, and an increase in it is subject to a decision by the relevant ministry.
While fees are considerably lesser source of income compared to the central government transfers to local governments or taxes, they nevertheless affect the economy as a whole. For example, revenue from public transport – compensation received from contract municipalities, passenger ticket fees and state subsidies for public transport– amounted to almost €8 million, and the city collected more than €700,000 in parking fines.
Some of the fees are set by the city, such as the fees collected for cultural and sports services or the use of public transport.
When deciding on the fees for the city’s services, other aspects are taken into account in addition to revenue. For example the aim is to maintain the cost of public transport fees at such a level that it encourages the use of public transport and thus also contributes to climate goals.