Akaa to initiate cooperation negotiations amid financial adjustments in Finland

The city of Akaa is planning to initiate cooperation negotiations. Mayor Antti Peltola will propose to the city council meeting on September 3rd that the city commence discussions in accordance with the Cooperation Act, based on production and financial grounds. The annual need for budget adjustment is approximately five million euros.

The negotiations will involve the entire city staff. Peltola stated in a press release that despite positive developments in Akaa in recent years, financial adjustments must continue. “We must persist in the process of balancing our finances to meet legislative requirements for the municipality’s financial stability,” he said.

The city management will explore all available options to reduce the costs of service provision in both the short and long term, as well as to increase revenue. In terms of personnel costs, the primary focus will be on utilizing natural attrition. Additionally, the filling of open and temporary positions will be critically assessed. Other cost-saving measures include potential layoffs and part-time adjustments of positions, with the ultimate goal being to achieve savings through dismissals.

Aka’s municipal finances are under particular pressure due to significant reductions in state subsidies, which decreased by approximately four million euros or nearly 40% this year. Efforts to stabilize the budget have continued within the city’s leadership team, collaborating with consultants over the spring. In September, an electronic survey will be organized for city personnel to share their ideas for financial balancing measures.