L CITY OF LAHTI FINANCIAL STATEMENT 2015 …

Transcription

CITY OF LAHTI
FINANCIAL STATEMENT 2015
…
Table of Contents
1
KEY OPERATIONAL AND FINANCIAL EVENTS ............................................................................................ 2
1.1
2
Mayor's Review..................................................................................................................................... 2
FINANCIAL STATEMENTS .......................................................................................................................... 4
2.1
CITY OF LAHTI FINANCIAL STATEMENTS ................................................................................................ 4
2.1.1
Profit and loss statement ........................................................................................................................ 4
2.1.2
Cash flow statement ................................................................................................................................ 5
2.1.3
Balance sheet........................................................................................................................................... 6
2.1.4
City of Lahti key figures ........................................................................................................................... 8
2.2
LAHTI GROUP STATEMENTS .................................................................................................................. 9
2.2.1
Profit and loss statement ........................................................................................................................ 9
2.2.2
Cash flow statement .............................................................................................................................. 10
2.2.3
Balance sheet......................................................................................................................................... 11
2.2.4
Lahti Group key figures .......................................................................................................................... 13
3
NOTES TO THE FINANCIAL STATEMENTS ................................................................................................ 14
3.1
NOTES TO THE FINANCIAL STATEMENTS ............................................................................................. 14
3.1.1
NOTES TO THE PROFIT AND LOSS STATEMENT ..................................................................................... 15
3.1.2
NOTES TO THE BALANCE SHEET ............................................................................................................ 21
3.1.3
NOTES TO PERSONNEL .......................................................................................................................... 35
3.2
NOTES TO THE GROUP FINANCIAL STATEMENTS ................................................................................. 36
3.2.1
NOTES TO THE GROUP PROFIT AND LOSS STATEMENT ........................................................................ 38
3.2.2
NOTES TO THE GROUP ASSETS .............................................................................................................. 39
3.2.3
NOTES TO THE GROUP LIABILITIES ........................................................................................................ 40
1
KEY OPERATIONAL AND FINANCIAL EVENTS
1.1 Mayor's Review
In January 2015, the local councils of Nastola and the City of Lahti decided on the dissolution of both
municipalities and the establishment of a new City of Lahti as of 1 January 2016. The practical
implementation of the merger was an important part of the work of the local councils, boards, and
personnel in the course of the year. A goal was set for the merger agreement to strengthen the vitality
and competitiveness of the region and to ensure solid services and an attractive living environment for
its residents. The entire region is to be developed in a balanced manner. Preparations for the merger
proceeded as scheduled, and all employees could be assigned jobs in the new city organisation, most of
them as early as by the end of June.
In the past year, the development of the Lahti economic region was marked by the same characteristics
as that of the entire nation. Economic growth was slow, and employment showed no signs of
improvement. However, many companies, especially those active in international markets, were
successful. Investment activity was relatively strong, both in housing production and in other areas.
City services were improved in the year under review, in consideration of the needs created by the
merger. The City’s customer services were centralised in Lahti Piste, located in the main library. New
multipurpose facilities were opened in Jalkaranta and Liipola. Problems with indoor air quality in schools
and day-care centres continued to require replacement facilities. In autumn, important strategic
decisions were made regarding solutions for the future school network in the city centre. Structural
changes in social and health services continued. City employees did excellent work under the pressure
resulting from the merger of municipalities and other changes.
The City’s 2015 financial result was weaker than budgeted. The annual margin was EUR 25 million, and
the budgeted profit of approximately EUR 9 million was actualised as EUR 5 million to the negative.
Many factors contributed to the year’s weak outcome. Operating expenses exceeded the budget by
some EUR 2 million, while rising costs in social and health services, along with subsidised employment
efforts, will continue to impose pressure, in 2016 and in coming years. Also, proceeds from the sale of
assets were lower than budgeted. As for Group-internal arrangements, the annual margin was impacted
by the write-downs and other liabilities (EUR 3.6 million) associated with winding up of the operations of
Lahden Seudun Kuntatekniikka. On the other hand, the result was improved by the refund (EUR 8
million) of the surplus in the Päijät-Häme education consortium, related to the reorganisation and
property solutions of the operations. In accounting, the refund was included in the extraordinary items.
The City’s operating expenses increased by EUR 28.8 million (4.6%) from the previous year’s figure.
Personnel expenses remained at the same level as in the previous year, and the number of permanent
employees was reduced by 86 when the effect of the service production and personnel transferred from
the Eteva municipal federation is eliminated. Purchases of external services grew by some EUR 18
million. This includes an increase in the purchasing of special health-care and on-call services (EUR 5
million) and a change in the organisation of public transport (EUR 6 million). The Eteva arrangement
reduced service purchasing by EUR 2.5 million. Part of the increase in the City’s expenditure was
merger-related, including elements such as costs associated with ICT services.
The level of investments remained high. The city centre received a facelift in the form of a travel centre
and new parking facilities under the market square, while private investments too have done their part
for the beautification of the centre. In addition to the multipurpose facilities, the City’s large and
economically significant investments included the renovation and overhaul of the Metsäkangas school,
repairs to the main stands at the sports centre, building of the travel centre, and overhauling of the city
hospital (carried out in phases). The City’s net investments totalled EUR 82 million. Funds generated
from revenue covered only 30% of the net investment expenses. Investment expenditure will remain
high in the coming years.
The weaker-than-anticipated result for the financial year reduces the accumulated surplus from
previous years to approximately EUR 121 million, including an adjustment to the deficit of the social and
health-care consortium (EUR 2 million) for 2014. The surplus to be transferred to the new Lahti
increases, however, by some EUR 21 million when the equity of the City of Lahti’s industrial fund,
dismantled as of 31 December 2015, is added to the surplus from previous years.
The City’s borrowing to cover its own operations amounted to EUR 285.7 million at the end of 2015;
that is 2,751 euros per resident. This is an increase of 437 euros per resident from the end of 2014. The
debt of the Group totalled EUR 942.8 million at the end of the year.
Within the City Group, Oppilastalo Oy became a subsidiary of Lahden Talot Oy, and Tilatalot Oy was
merged into Spatium Toimitilat Oy. In the reorganised Päijät-Häme education and municipal consortium,
the City acquired the following new subsidiaries: Lahti University of Applied Sciences and
Työhönvalmennus Valma Oy (engaged in job coaching), whose name was changed to Lahden Työn
Paikka Oy in December. Lahti Events Oy was established to organise the 2017 World Ski Championships
and with the goal of ensuring that Lahti hosts further international sporting events after the 2017
games. The Hämeen Päihdehuolto municipal federation was dissolved by joint agreement of the
member municipalities. After Lahden Seudun Kuntatekniikka Oy became unprofitable, Lahti, together
with the other participating municipalities, decided to commence a managed dismantling process for
the company.
In 2015, the City organisation focused on preparations for the merger of Lahti with Nastola,
accomplished on 1 January 2016, which will offer new opportunities to build a future for the entire
region. New practices are being implemented in connection with the creation of a new municipality.
These will be needed as public finances become ever tighter. Furthermore, the upcoming reforms in the
areas of social and health services, along with the provincial reorganisation, which will mean a
fundamental change in City operations, had to be prepared for. The reforms focus on a stronger role for
the municipalities in advancing vitality, entrepreneurship, and employment. Municipalities will have
increased decision power in relation to matters of vitality – local accountability, assessment, and
decision-making are to be strengthened.
The outlook for the future will be determined by a change in the City’s practices, the opportunities
provided by digitalisation, and changes in people’s expectations and preferences. The City will be part of
a new multi-tasking and multi-production environment where the residents participate in various ways
in the directing and choosing of services. A flexible city with services rooted in people’s needs and
preferences will be able to combine quality, economy, and effectiveness in a new way while at the same
time strengthening both business and employment.
Jyrki Myllyvirta
Mayor
2
FINANCIAL STATEMENTS
2.1
2.1.1
CITY OF LAHTI FINANCIAL STATEMENTS
Profit and loss statement
1.1.-31.12.2015
1.1.-31.12.2014
32,390,819.99
37,548,207.28
17,670,335.87
23,289,681.29
10,428,842.11
121,327,886.54
475,228.54
25,335,371.78
37,857,934.66
17,867,200.32
21,407,768.09
28,671,229.58
131,139,504.43
623,920.18
-201,615,726.97
-201,675,170.92
-55,818,048.99
-12,347,564.78
-273,389,060.63
-24,618,270.20
-58,757,826.16
-26,750,854.76
-653,297,352.49
-55,797,456.60
-12,481,139.81
-255,442,234.90
-25,201,054.84
-50,874,180.29
-23,006,719.48
-624,477,956.84
-531,494,237.41
-492,714,532.23
392,633,758.30
157,684,522.00
385,767,840.25
149,253,195.00
9,212,135.53
11,063,541.90
-13,451,192.26
-962,335.01
5,862,150.16
10,349,551.27
13,371,915.47
-12,578,749.63
-467,185.36
10,675,531.75
Annual margin
24,686,193.05
52,982,034.77
Depreciation and write-downs
Planned depreciation
Write-downs
-37,192,225.14
-317,703.93
-34,962,089.91
0.00
8,185,383.35
2,990,333.33
-4,638,352.67
21,010,278.19
451,238.54
1,184,298.23
489,459.39
940,040.20
-3,002,815.90
22,439,777.78
Income from operations
Sales revenue
Revenue from fees
Aid and assistance
Rent revenue
Other income from operations
Production for own use
Operating expenses
Personnel expenses
Salaries and fees
Social security expenses
Pension expenses
Other social security expenses
Services purchased
Materials, supplies, and goods
Assistance and subsidies
Other operating expenses
Operating
margin
Tax revenue
State aid
Financial income and expenses
Interest income
Other financial income
Interest paid
Other financial expenses
Total financial income/expenses
Extraordinary items
Extraordinary income
Result for the financial year
Increase (-) / decrease (+) in depreciation difference
Increase (-) / decrease (+) in funds
SURPLUS (DEFICIT) FOR THE FINANCIAL YEAR
2.1.2
Cash flow statement
THE CITY OF LAHTI’S CASH FLOW STATEMENT
2015
2014
24,686,193.05
8,185,383.35
148,398.82
33,019,975.22
52,982,034.77
2,990,333.33
-23,588,280.51
32,384,087.59
-86,190,964.64
4,406,390.07
7,652,037.92
-74,132,536.65
-80,712,624.37
2,889,838.30
24,041,127.64
-53,781,658.43
-41,112,561.43
-21,397,570.84
-72,745,000.00
35,424,203.19
-37,320,796.81
-43,390,000.00
47,937,714.74
4,547,714.74
132,618,883.53
-50,016,927.40
-654,170.68
81,947,785.45
153,068,390.35
-48,144,376.33
-56,617,913.31
48,306,100.71
1,704,082.61
29,105.65
7,742,886.64
1,515,195.89
10,991,270.79
-163,067.60
240,841.30
-17,420,183.29
-5,507,810.83
-22,850,220.42
Financing cash flow
55,618,259.43
30,003,595.03
Change in liquid assets
14,505,698.00
8,606,024.19
91,714,744.25
77,209,046.25
14,505,698.00
77,209,046.25
68,603,022.06
8,606,024.19
Cash flow from operations
Annual margin
Extraordinary items
Adjustment to retained earnings
Cash flow from investments
Investment expenses
Financial contribution toward investment expenses
Revenue from sale of fixed assets
Cash flow from operations and investments
Financing cash flow
Change in lending
Increase in loan receivables
Decrease in loan receivables
Change in borrowing
Increase in long-term debt
Decrease in long-term debt
Change in short-term debt
Other changes in liquidity
Changes in assignment assets and capital
Change in current assets
Change in receivables
Change in non-interest-bearing debt
Liquid assets, 31.12
Liquid assets, 1.1
2.1.3
Balance sheet
THE CITY OF LAHTI’S BALANCE SHEET
ASSETS
2015
2014
671,933.93
5,938,866.97
112,448.12
6,723,249.02
1,589,718.30
6,174,907.38
771,556.75
8,536,182.43
106,136,341.50
246,225,397.63
156,630,486.03
9,839,828.98
6,677,913.83
525,509,967.97
102,521,488.30
211,633,513.80
138,846,840.13
9,745,758.97
27,789,811.06
490,537,412.26
193,676,491.03
403,955,904.95
597,632,395.98
188,144,504.57
367,562,608.14
555,707,112.71
0.00
252,989.29
36,116.33
289,105.62
52,438.92
252,989.29
29,917.26
335,345.47
236,395.25
265,500.90
29,736,123.29
750,144.16
33,934,819.46
1,125,215.16
11,805,517.26
63,377,392.92
5,455,498.47
7,485,308.09
118,609,984.19
10,280,278.86
64,625,639.74
6,161,254.93
10,225,662.68
126,352,870.83
10,309,175.60
0.00
10,309,175.60
7,149,556.60
500,000.00
7,649,556.60
81,405,568.65
69,559,489.65
1,340,715,842.28
1,258,943,470.85
LONG-TERM ASSETS
Intangible assets
Intangible rights
Other long-term expenditure
Advance payments and work in progress
Tangible assets
Land and water areas
Buildings
Fixed structures and equipment
Machinery and equipment
Advance payments and assets under construction
Investments
Stocks and shares
Other loan receivables
ASSIGNMENT ASSETS
State assignments
Special margins for donation funds
Other assignment assets
SHORT-TERM ASSETS
Current assets
Materials and supplies
Receivables
Long-term receivables
Loan receivables
Other receivables
Short-term receivables
Accounts receivable
Loan receivables
Other receivables
Deferred assets
Marketable securities
Stocks and shares
Investments in money market instruments
Cash and bank receivables
TOTAL ASSETS
LIABILITIES
2015
2014
394,306,416.53
31,218,691.68
123,817,445.21
-3,002,815.90
546,339,737.52
394,306,416.53
32,402,989.91
103,236,964.53
20,580,480.68
550,526,851.65
2,529,307.82
2,980,546.36
8,151,600.00
4,599,297.10
12,750,897.10
9,361,700.00
2,099,297.10
11,460,997.10
14,835.58
469,370.48
2,820,167.33
3,304,373.39
98,059.73
460,889.63
1,087,581.27
1,646,530.63
40,000,000.00
579,500,000.00
53,567.53
3,755,004.28
623,308,571.81
40,000,000.00
489,000,000.00
60,841.89
2,854,219.28
531,915,061.17
42,000,000.00
28,130,428.05
220,215.20
27,889,249.79
4,801,935.62
49,441,125.98
152,482,954.64
50,000,000.00
28,675,368.24
121,788.50
27,316,401.10
4,865,762.88
49,434,163.22
160,413,483.94
1,340,715,842.28
1,258,943,470.85
EQUITY
Original capital
Other own reserves
Surplus from previous financial years
Surplus (deficit) for the financial year
DEPRECIATION DIFFERENCE AND VOLUNTARY
RESERVES
Depreciation difference
STATUTORY RESERVES
Pension reserves
Other statutory reserves
ASSIGNMENT CAPITAL
State assignments
Donation-funds capital
Other assignment capital
EXTERNAL CAPITAL
Long-term
Bonds
Loans from financial and insurance institutions
Other loans
Deferred liabilities
Short-term
Other loans
Advances received
Accounts payable
Other debt
TOTAL LIABILITIES
2.1.4
City of Lahti key figures
CITY OF LAHTI
KEY FIGURES
2015
2014
Operating income / operating expenses, %
18.6%
21.0%
Annual margin / depreciation, %
65.8%
151.5%
Profit and loss statement key figures
Annual margin per resident, in euros
238
510
103,846
103,754
6,287
6,074
-132,437,345
-102,658,378
Internal financing of investments, %
30.2%
68.1%
Internal financing of capital expenditure, %
14.6%
43.6%
0.6
1.1
38.2
34.8
40.9%
44.0%
Inhabitants
Number of staff
Cash flow statement key figures
Accrued cash flow from operations and investments
over 5 years, in euros
Debt coverage ratio
Cash sufficiency, days
Balance sheet key figures
Solvency ratio, %
Relative indebtedness, %
115.5%
103.9%
Accrued surplus/deficit, in thousands of euros
120,815
123,817
Accrued surplus/deficit per resident, in euros
1,163
1,193
Total borrowing as of 31.12 per resident, in euros
6,641
5,857
Total borrowing as of 31.12, in thousands of euros
689,684
607,736
Loan receivables as of 31.12, in thousands of euros
403,956
367,563
* Preliminary figure for residents in 2015
2.2
2.2.1
LAHTI GROUP STATEMENTS
Profit and loss statement
LAHTI GROUP
PROFIT AND LOSS STATEMENT
1.1.—31.12.2015
1.1.—31.12.2014
541,891,048.10
-1,036,673,311.98
117,691.49
-494,664,572.39
538,607,235.16
-1,000,896,367.52
115,998.26
-462,173,134.10
Tax revenue
State aid
388,656,677.80
226,482,930.64
382,398,585.04
204,927,242.44
Financial income and expenses
Interest income
Other financial income
Interest paid
Other financial expenses
Total financial income and expenses
ANNUAL MARGIN
573,450.59
4,962,306.62
-20,896,161.61
-401,228.85
-15,761,633.25
104,713,402.81
1,945,534.21
963,295.78
-19,995,846.91
-930,150.29
-18,017,167.21
107,135,526.17
Planned depreciation
Ownership elimination difference
Write-downs
-103,559,407.70
622,260.22
-13,881.37
-102,951,028.85
-96,795,374.62
-215,582.91
148.71
-97,010,808.82
Extraordinary items
RESULT FOR THE FINANCIAL YEAR
-494,617.77
1,267,756.19
2,990,333.33
13,115,050.67
Adjustments
1,167,148.91
940,040.20
Taxes
Calculated taxes
-2,641,613.53
-1,882,280.91
-3,343,096.92
-447,744.08
Minority interest
SURPLUS (DEFICIT) FOR THE FINANCIAL YEAR
1,025,530.29
-1,063,459.06
-33,191.87
10,231,058.00
Income from operations
Operating expenses
Share in profit (loss) of affiliated entities
OPERATING MARGIN
2.2.2
Cash flow statement
LAHTI GROUP
Cash flow statement
31.12.2015
31.12.2014
104,711,420.46
-492,635.43
-2,641,613.53
-875,561.22
100,701,610.28
107,135,526.17
2,990,333.33
-3,343,096.92
-3,396,822.20
103,385,940.38
-162,941,417.30
4,581,788.08
9,661,571.07
-148,698,058.15
-148,019,934.93
2,290,664.07
9,985,674.29
-135,743,596.57
-47,996,447.87
-32,357,656.19
-3,319,652.50
138,426.13
-3,181,226.37
-3,572,129.84
317,222.75
-3,254,907.09
Change in borrowing
Increase in long-term debt
Decrease in long-term debt
Change in short-term debt
Change in borrowing
132,724,365.88
-65,082,905.43
-10,607,397.97
57,034,062.48
185,231,160.67
-67,774,591.16
-53,668,251.58
63,788,317.93
Change in equity
Change in equity
Change in minority interest
Change in equity
-2,986,323.33
7,578,225.79
4,591,902.45
249,080.42
303,126.59
552,207.01
Changes in assignment assets and capital
Change in current assets
Change in receivables
Change in non-interest-bearing debt
1,677,492.20
-2,192,082.66
359,067.24
7,147,037.10
6,991,513.88
-184,905.34
-6,912,006.91
5,611,563.92
-1,941,076.42
-3,426,424.75
Financing cash flow
65,436,252.45
57,659,193.10
17,439,804.58
25,301,536.91
Liquid assets, 31.12
Liquid assets, 1.1
143,912,306.69
128,760,366.69
17,439,804.58
128,760,366.69
103,458,829.79
25,301,536.90
Cash flow from operations
ANNUAL MARGIN
Extraordinary items
Taxes
Adjustment to retained earnings
Investment expenses
Financial contribution toward investment expenses
Revenue from sale of fixed assets
Cash flow from operations and investments
Financing cash flow
Change in lending
Increase in loan receivables
Decrease in loan receivables
Change in lending
2.2.3
Balance sheet
LAHTI GROUP
BALANCE SHEET
ASSETS
LONG-TERM ASSETS
Intangible assets
Intangible rights
Advance payments and work in progress
Intangible assets
31.12.2015
31.12.2014
9,031,118.48
13,322,364.66
632,044.11
22,985,527.25
8,727,779.24
15,067,615.47
2,278,814.16
26,074,208.87
119,896,979.63
690,822,954.48
334,855,008.53
172,935,977.62
3,760,397.63
51,561,977.97
1,373,833,295.86
116,710,169.87
642,880,867.45
317,629,136.17
173,183,986.75
2,845,002.02
75,422,871.13
1,328,672,033.39
4,520,767.55
62,467,231.05
4,444,479.33
55,515,153.54
199,086.50
11,132,680.36
51,776.19
78,371,541.65
1,475,190,364.76
203,400.00
8,298,401.96
632,328.22
69,093,763.05
1,423,840,005.31
ASSIGNMENT ASSETS
1,316,753.63
2,641,533.12
SHORT-TERM ASSETS
Current assets
31,551,569.21
29,142,972.64
Long-term receivables
Short-term receivables
10,727,816.67
79,686,743.24
5,616,727.44
85,018,649.10
Marketable securities
20,715,680.59
13,721,599.87
123,196,626.10
115,038,766.82
265,878,435.81
1,742,385,554.20
248,538,715.87
1,675,020,254.31
Tangible assets
Buildings
Other tangible assets
Tangible assets
Investments
Stocks and shares in affiliated entities
Other stocks and shares and
revaluation of shares
Bond receivables
Other receivables
Investments
LONG-TERM ASSETS
Cash and bank receivables
SHORT-TERM ASSETS
ASSETS
LAHTI GROUP
BALANCE SHEET
LIABILITIES
EQUITY
Original capital
Original capital of associations and foundations
Capital surplus reserve
Revaluation reserve
Other own reserves
Surplus (deficit) from previous periods
EQUITY
31.12.2015
31.12.2014
394,306,416.53
74,002.69
88,286.73
5,567,378.26
47,438,121.87
92,346,808.73
-1,063,459.06
538,757,555.75
394,306,416.53
74,002.69
88,286.73
6,750,396.90
48,893,301.58
82,115,750.73
10,231,058.00
542,459,213.16
14,205,074.41
12,934,206.83
2,314,471.12
3,085,961.44
8,151,600.00
11,519,506.32
19,671,106.32
9,361,700.00
6,542,095.55
15,903,795.55
5,293,670.37
4,943,818.57
885,609,656.89
56,934,864.66
57,227,751.84
162,371,402.84
813,581,532.73
47,873,973.22
71,549,228.10
162,688,524.70
EXTERNAL CAPITAL
1,162,143,676.23
1,095,693,258.75
LIABILITIES
1,742,385,554.21
1,675,020,254.31
MINORITY INTERESTS
CONSOLIDATION RESERVE
STATUTORY RESERVES
Pension reserves
STATUTORY RESERVES
ASSIGNMENT CAPITAL
EXTERNAL CAPITAL
Long-term interest-bearing debt
Long-term non-interest-bearing debt
Short-term interest-bearing debt
Short-term non-interest-bearing debt
2.2.4
Lahti Group key figures
LAHTI GROUP
Profit and loss statement key figures
Operating income / operating expenses, %
Annual margin / depreciation, %
Annual margin per resident, in euros
Inhabitants
Number of staff
Cash flow statement key figures
Accrued cash flow from operations and
investments
over 5 years, in euros
Internal financing of investments, %
Debt coverage ratio
Cash sufficiency, days
Balance sheet key figures
Solvency ratio, %
Relative indebtedness, %
Accrued surplus (deficit), in thousands of euros
Accrued surplus (deficit) per resident, in euros
Total borrowing, in thousands of euros
Total borrowing per resident, in euros
Loan receivables, in thousands of euros
* Preliminary figure for residents in 2015
2015
2014
52.3%
101.1%
1,008
103,846
10,500
53.6%
107.0%
1,033
103,754
10,048
-440,332,650
-431,113,696
66.1%
1.5
40.7
71.2%
1.4
38.0
32.0%
99.8%
91,283
889
942,837
9,079
11,332
34.2%
95.3%
82,116
791
885,131
8,531
8,502
3
3.1
NOTES TO THE FINANCIAL STATEMENTS
NOTES TO THE FINANCIAL STATEMENTS
Notes to the preparation of the financial statements
Principles and methods of valuation and allocation
Valuation of fixed assets
Tangible and intangible fixed assets have been reported
at acquisition cost less planned depreciation. The
planned depreciations have been calculated according
to a depreciation plan prepared in advance. The
calculation of planned depreciations and their bases are
described in the notes to the profit and loss statement
under “Bases of planned depreciations.”
Valuation of investments
Investments in fixed assets are valuated at acquisition
cost or lower. The valuation is based on the future
income likely to be accrued from the asset or its value in
service production.
Valuation of current assets
The current assets in the balance sheet are valued
according to the FIFO principle at their acquisition cost
or likely acquisition cost or at their likely sales price,
whichever is lower.
Allocation principles
Revenue and expenditure are reported on an accrual
basis, with the exception of the interest income on the
subordinated loans granted to the following companies:
 Kiinteistö Oy Lahden Varaani, a real-estate
company,
in
2015
EUR 1,025.95, in total EUR 13,542.50
 Kuntien
Tiera
Oy,
in
2015
EUR 12,673.61, in total EUR 22,916.67
 Lahden Seudun Kuntatekniikka Oy, in 2015
EUR 27,205.55, in total EUR 27,205.55
Comparability with the previous financial period
The owners of Lahden Seudun Kuntatekniikka Oy have
decided to wind up the company. The City of Lahti owns
66.25% of Lahden Seudun Kuntatekniikka Oy. The shares
and subordinated loan of Lahden Seudun Kuntatekniikka
Oy have been written down by a total of EUR 1.1 million,
and EUR 2.5 million was added to the statutory reserves.
Extraordinary income includes a surplus refund in the
amount of EUR 8.185 million from the Päijät-Häme
educational and municipal consortium.
Valuation of financial assets
Receivables are valuated at their nominal value or likely
value, whichever is lower. Financial securities are
valuated at their acquisition cost or likely sales price,
whichever is lower.
Four housing units from Nastola, Orimattila, and Hollola
were transferred to Lahti’s social and health services
from the Eteva municipal federation. This results in EUR
2.578 million of operating income and EUR 2.013 million
of operating expenses.
Treatment of derivative contracts
Derivative contracts include interest-rate swaps,
interest-rate and currency swaps, and interest-rate
swaps with a right to extend or terminate (swaptions).
All derivative contracts have been entered into with the
purpose of hedging the City’s current or future
borrowings. Using currency swaps, debt denominated in
GBP or SEK has been converted into euros at exchange
rates set through interest-rate and currency swaps,
agreed upon for the dates of both drawdown and
maturity at the time of the drawing down of the loans.
Hence, currency risk has been eliminated. The maximum
duration of derivative contracts extends to 2055.
The City Council has decided to wind up the balance
sheet unit of Lahti’s industrial fund as of 31 December
2015 and transfer its surplus from previous financial
years along with its balance sheet items to the City’s
balance sheet as of 1 January 2016.
Treatment of errors regarding previous financial years
The Päijät-Häme social and health services consortium is
covering the deficit from previous years. The City’s share
of this coverage comes to EUR 1.859 million. The
adjustment has been included in the surplus from
previous financial years. The reference data for 2014 has
been adjusted accordingly.
3.1.1
NOTES TO THE PROFIT AND LOSS STATEMENT
NOTES TO THE PROFIT AND LOSS STATEMENT
CITY OF LAHTI
2015
2014
Social and health services
Education and cultural services
Utilities
48,918,694.30
20,469,060.69
33,516,503.08
38,848,138.22
19,365,249.77
28,759,587.30
Housing and real estate services
Other services
Total income from operations
5,286,166.84
13,137,461.63
121,327,886.54
4,747,451.34
32,316,189.38
131,139,504.43
TAX REVENUE
Municipal tax revenue
Share in corporate tax revenue
Real estate tax
Total tax revenue
336,773,971.51
23,485,349.71
32,374,437.08
392,633,758.30
334,941,126.98
22,541,838.13
28,284,875.14
385,767,840.25
STATE AID
State’s share of basic municipal services
Adjustment of state’s share based on tax revenue
Adjustment for system change
State’s share of education and cultural services
Total state aid
145,190,445.00
17,447,389.00
0.00
-4,953,312.00
157,684,522.00
160,825,473.00
-2,902,224.00
-109,895.00
-8,560,159.00
149,253,195.00
Extraordinary income
Loan receivable sold to Kuntarahoitus (Municipality
Finance)
Surplus refund of Päijät-Häme educational consortium
Total extraordinary income
0.00
8,185,383.35
8,185,383.35
2,990,333.33
0.00
2,990,333.33
Total extraordinary items
8,185,383.35
2,990,333.33
Pension reserve 1.1
Decrease
Pension reserve 31.12
9,361,700.00
-1,210,100.00
8,151,600.00
10,652,300.00
-1,290,600.00
9,361,700.00
Reserve for environmental liabilities, 1.1
Reserve for environmental liabilities, 31.12
Other statutory reserves, 1.1
Other statutory reserves, 31.12
Other statutory reserves 31.12
240,000.00
240,000.00
4,359,297.10
4,359,297.10
4,599,297.10
240,000.00
240,000.00
0.00
1,859,297.10
2,099,297.10
12,750,897.10
11,460,997.10
OPERATING INCOME BY BUSINESS FUNCTION
EXTRAORDINARY INCOME AND EXPENDITURE
CHANGE IN STATUTORY RESERVES
Total reserves
CITY OF LAHTI
2015
2014
1,931,563.43
332,630.61
605,753.54
2,869,947.58
2,120,184.41
19,250,000.00
207,105.72
21,577,290.13
-800,946.40
-800,946.40
0.00
0.00
10,533,641.92
70,788.16
10,604,430.08
11,473,648.00
57,710.92
11,531,358.92
CAPITAL GAINS AND LOSSES FROM FIXED ASSETS
Other income from operations
Capital gains, Land and water areas
Capital gains, Buildings
Capital gains, Other
Capital gains
Other operating expenses
Capital loss, Other
Capital losses
DIVIDEND INCOME AND INTEREST ON SHARE CAPITAL,
ITEMISED
Dividend income from subsidiaries
Dividend income and interest on share capital from others
Total
ACCOUNT ON THE BASES USED FOR PLANNED DEPRECIATIONS
(on acquisitions since 2013)
Depreciations on fixed assets were determined based on a depreciation plan prepared in advance. The planned
depreciations have been calculated on the basis of the useful economic life of fixed assets, estimated based on their
acquisition cost.
Write-off periods and annual percentages along with depreciation methods applied to fixed assets acquired since
2013 are:
Fixed assets
Intangible assets
Write-off
period
Development expenditure
2*
Intangible rights
5*
Licences
Goodwill
ICT development expenditure
Other
*) maximum 20 years, for a special reason
5*
2*
2*
2*
Tangible assets
Buildings and constructions
20
Industrial and production buildings
20
Outbuildings
10
Recreational buildings
20
Residential buildings
30
Streets, roads, market squares, parks
15
Bridges, piers, swimming pools
10
Traffic control equipment
Other fixed machinery, equipment and structures
Building overhauls
Straight-line
depreciation
Straight-line
depreciation
Straight-line
depreciation
Straight-line
depreciation
Straight-line
depreciation
Straight-line
depreciation
50 %
20 %
20 %
50 %
50 %
50 %
no write-off period
Administrative and institutional buildings
Other land and water constructions
Electric wires, transformer stations, outdoor
lighting
Straight-line
depreciation
15
15
10
10
Straight-line
depreciation
5%
Straight-line
depreciation
5%
Straight-line
depreciation
10 %
Straight-line
depreciation
5%
Straight-line
depreciation
3.30 %
Straight-line
depreciation
6.70 %
Straight-line
depreciation
10 %
Straight-line
depreciation
6.70 %
Straight-line
depreciation
6.70 %
Straight-line
depreciation
10 %
Straight-line
depreciation
10 %
Useful economic life
is calculated separately for
each investment
Other transport equipment
4
Other mobile machinery
5
Straight-line
depreciation
Straight-line
depreciation
25 %
20 %
Other heavy machinery
10
Other light machinery
5
Hospital, health care and similar equipment
5
Computer equipment
3
Other equipment and fixtures
Natural resources
Art and valuables
Investment in fixed assets
Stocks and shares
3
Straight-line
depreciation
Straight-line
depreciation
Straight-line
depreciation
Straight-line
depreciation
Straight-line
depreciation
10 %
20 %
20 %
33.30 %
33.30 %
depreciation based on use
no write-off period
no write-off period
no write-off period
Acquisitions of less than EUR 10,000 have been included in annual expenditure.
Account on the comparability of planned depreciations and investments subject to depreciation
In 2013–2017:
Average planned depreciation
42,246,063
Average acquisition cost of investments subject to depreciation
71,690,600
Difference (EUR)
-29,444,537
Difference (%)
-41
The investments in building overhauls in 2015 continued to focus on major repairs of large school buildings and the
recreation structures of the sports centre, along with facilities for the 2017 World Championship games. A significant
number of the buildings are the same age, hence the many repair projects in the pipeline. Some of these will be
replaced by new constructions. The biggest replacement investments included those in the multipurpose buildings
for Liipola and Jalkaranta, completed in the autumn of 2015. With the replacement investments completed, our
focus has again shifted to building overhauls, with the city hospital being the most important one. The work began
in 2015 and will be completed in 2018.
The city hospital project, carried out in phases, will be the biggest of the City’s building investments in recent years.
The growing need for investment increases the amount of investment in excess of the planned depreciation of old
buildings to be replaced.
Account on the bases used for planned depreciations (acquisitions prior to 2013)
Depreciations on fixed assets were determined based on a depreciation plan prepared in advance. The planned
depreciations have been calculated on the basis of the useful economic life of fixed assets, estimated based on their
acquisition cost.
Write-off periods and annual percentages, along with depreciation methods applied to fixed assets acquired prior
to 2013, are:
Intangible rights
5
years
Computer software
5
years
5-20
years
3
years
Residential buildings
40
years
Administrative and institutional buildings
30
years
Industrial and production buildings
20
years
Recreational buildings
25
years
7
years
Streets, roads, bridges, market squares, parks
20
years
Recreational and sports areas
30
years
Other fixed structures and equipment
15
years
Traffic and outdoor lights
10
years
3-5
years
5
years
Cost of participation in property of others
Other buildings and constructions
Computer equipment
Passenger cars, vans
Lorries, heavy machinery,
Straight-line
depreciation
Straight-line
depreciation
Straight-line
depreciation
Straight-line
depreciation
Straight-line
depreciation
Straight-line
depreciation
Straight-line
depreciation
Straight-line
depreciation
Straight-line
depreciation
Straight-line
depreciation
Straight-line
depreciation
Straight-line
depreciation
Straight-line
depreciation
Straight-line
depreciation
Straight-line
depreciation
20.0 %
20.0 %
20.0-5.0 %
33.3 %
2.5 %
3.3 %
5.0 %
4.0 %
14.3 %
5.0 %
3.3 %
6.7 %
10.0 %
33.3-20 %
20.0 %
heavy rescue vehicles
10
years
Other vehicles and mobile machinery
5
years
Institutional machines and equipment
10
years
Musical instruments
15
years
Technical work equipment
10
years
3-5
years
10
years
Other equipment and fixtures
Straight-line
depreciation
Straight-line
depreciation
Straight-line
depreciation
Straight-line
depreciation
Straight-line
depreciation
Straight-line
depreciation
Straight-line
depreciation
Acquisitions of less than EUR 10,000 have been included in annual expenditure.
10.0 %
20.0 %
10.0 %
6.7 %
10.0 %
33.3–20 %
10.0 %
3.1.2
NOTES TO THE BALANCE SHEET
NOTES TO THE ASSETS
CITY OF LAHTI
2015
2014
Intangible rights
Depreciable acquisition cost 1.1 (+)
Increase (investments) (+)
Transfers between items (+/-)
Depreciations for the period (-)
Intangible rights
1,589,718.30
24,633.61
0.00
-942,417.98
671,933.93
2,569,614.10
22,518.16
67,407.53
-1,069,821.49
1,589,718.30
Decrease (-)
6,174,907.38
1,026,190.78
0.00
806,189.54
-2,068,420.73
5,938,866.97
9,540,705.57
521,636.89
-2,084,795.94
238,491.79
-2,041,130.93
6,174,907.38
Intangible work in progress
Intangible work in progress
771,556.75
112,448.12
-771,556.75
112,448.12
277,611.26
758,896.75
-264,951.26
771,556.75
Advance payments and intangible work in progress
112,448.12
771,556.75
6,723,249.02
8,536,182.43
102,521,488.30
4,514,293.22
-910,902.80
11,462.78
106,136,341.50
97,433,142.16
4,001,993.37
-111,595.09
1,197,947.86
102,521,488.30
LONG-TERM ASSETS
INTANGIBLE ASSETS
Advance payments for intangible assets
Intangible assets
TANGIBLE ASSETS
Decrease (-)
CITY OF LAHTI
Buildings
Financial contributions of financial year
Decrease (-)
Buildings
Material additional depreciations
Material additional depreciations itemised
2015
2014
211,633,513.80
29,753,116.87
-6,553,394.00
-55,408.36
28,133,524.46
-16,685,955.14
246,225,397.63
200,565,658.49
17,665,133.40
-1,341,000.00
0.00
11,140,200.39
-16,396,478.48
211,633,513.80
-1,979,839.31
-2,535,250.62
138,846,840.13
31,115,644.28
0.00
30,575.74
-13,362,574.12
156,630,486.03
123,820,662.38
22,502,991.79
-354,982.67
4,893,059.72
-12,014,891.09
138,846,840.13
9,745,758.97
3,589,299.79
0.00
637,627.39
-4,132,857.17
9,839,828.98
8,819,608.28
2,709,856.13
-45,304.04
1,701,366.52
-3,439,767.92
9,745,758.97
27,789,811.06
5,588,922.00
2,147,003.93
-28,847,823.16
6,677,913.83
20,870,247.31
27,086,941.93
-1,193,855.63
-18,973,522.55
27,789,811.06
6,677,913.83
27,789,811.06
525,509,967.97
490,537,412.26
Depreciation for buildings includes material additional depreciation
due to demolition of a building or ceasing of its use:
- Laune Comprehensive School, EUR 1,800,000.00
- Day Care Centre of Mustikkamäki and Pirttiharju, total of EUR
179,839.31
Decrease (-)
Assets under construction
Assets under construction
Tangible assets
CITY OF LAHTI
INVESTMENTS
Stocks and shares
Stocks and shares in subsidiaries
Book value 1.1 (+)
Decrease (-)
Decrease in value during the period (-)
Stocks and shares in subsidiaries
Shares in municipal federations
Book value 1.1 (+)
Deductions for shares in municipal federations (-)
Decrease in value during the period (-)
Shares in municipal federations
Stocks and shares in affiliated entities and
other permanent holding participations
Book value 1.1 (+)
Other stocks and shares
Book value 1.1 (+)
Decrease (-)
Other stocks and shares
Stocks and shares
Receivables on subordinated loans to subsidiaries
Acquisition cost 1.1
Increase (+)
Decrease (-)
Book value 31.12
Receivables on subordinated loans to others
Increase (+)
Book value 31.12
2015
2014
126,971,163.60
10,403,215.97
-2,027,404.54
-198,750.00
135,148,225.03
121,575,520.60
5,395,643.00
0.00
0.00
126,971,163.60
56,690,748.85
-1,644,884.39
0.00
-118,953.93
54,926,910.53
56,645,444.81
0.00
45,304.04
0.00
56,690,748.85
45,219.13
0.00
45,219.13
43,510.22
1,708.91
45,219.13
4,437,372.99
63,200.00
-944,436.65
3,556,136.34
4,659,515.43
0.00
-222,142.44
4,437,372.99
193,676,491.03
188,144,504.57
98,229,750.00
32,259,650.00
200,000.00
-965,825.00
31,493,825.00
31,493,825.00
98,229,750.00
32,392,150.00
0.00
-132,500.00
32,259,650.00
32,259,650.00
61,556.79
270,518.93
0.00
270,518.93
270,518.93
61,556.79
20,518.93
250,000.00
270,518.93
270,518.93
CITY OF LAHTI
2015
2014
824,787,077.76
327,015,376.27
69,245,000.00
-34,921,405.06
361,338,971.21
361,338,971.21
824,787,077.76
334,675,773.86
39,840,000.00
-47,500,397.59
327,015,376.27
327,015,376.27
15,959,120.40
8,017,062.94
3,300,000.00
-464,473.13
10,852,589.81
10,852,589.81
15,959,120.40
5,021,880.09
3,300,000.00
-304,817.15
8,017,062.94
8,017,062.94
Total other loan receivables
403,955,904.95
367,562,608.14
Investments
597,632,395.98
555,707,112.71
Receivables from subsidiaries
Long-term
Loan receivables
Total long-term
29,547,975.61
29,547,975.61
33,750,000.00
33,750,000.00
Short-term
Accounts receivable
Group accounts receivable
Loan receivables
Other receivables
Deferred assets
Total short-term
486,131.22
58,814,283.49
4,394,219.52
312,141.25
1,530,091.25
65,536,866.73
602,134.14
61,195,260.71
1,250,000.00
0.00
1,469,904.47
64,517,299.32
Total receivables from subsidiaries
95,084,842.34
98,267,299.32
2,065,927.19
0.00
0.00
2,065,927.19
368,255.52
2,000,000.00
1,816,098.22
4,184,353.74
97,150,769.53
102,451,653.06
Other loan receivables from subsidiaries
Increase (+)
Decrease (-)
Book value 31.12
Other loan receivables from others
Increase (+)
Decrease (-)
Book value 31.12
RECEIVABLES FROM SUBSIDIARIES, MUNICIPAL FEDERATIONS
AND
AFFILIATED AND OTHER HOLDING PARTICIPATIONS
Receivables from municipal federations in which the City
participates
Accounts receivable
Loan receivables
Deferred assets
Total
Total receivables
CITY OF LAHTI
MATERIAL ITEMS INCLUDED IN DEFERRED ASSETS
State aid and EU subsidies
Kela payments for occupational health care
Deferred interest
Parking tickets
Refund for municipal pension payment, Keva
Adjustment to unemployment insurance contribution,
employer/employee
Lease for Kiint. Oy Hansapark
Adjustment for expensive care 2013, PH Sotey
Balance of Sotevi/Smartum service vouchers 31.12
Board of Education state participation adjustment for 2015/2014
Other deferred assets
Material items included in other deferred assets
DIFFERENCE BETWEEN BOOK VALUE AND MARKET VALUE OF
FINANCIAL SECURITIES
Market value of stocks and shares
Stocks and shares
Difference between book value and market value of stocks and
shares
Investments in money market instruments, market value
Investments in money market instruments
2015
2014
3,118,249.97
1,075,000.00
1,935,363.61
242,380.09
74,435.58
3,762,052.28
1,050,000.00
2,342,215.35
280,595.22
126,484.60
359,472.45
0.00
0.00
90,264.48
253,623.00
336,518.91
7,485,308.09
0.00
248,178.56
1,815,876.00
159,436.83
248,981.00
191,842.84
10,225,662.68
10,928,299.21
10,309,175.60
7,589,376.71
7,149,556.60
619,123.61
439,820.11
0.00
0.00
507,500.00
500,000.00
NOTES TO THE LIABILITIES
CITY OF LAHTI
2015
2014
394,306,416.53
394,306,416.53
394,306,416.53
394,306,416.53
42,883.85
42,883.85
42,883.85
42,883.85
City of Lahti’s industrial fund 1.1
Deficit for the financial year
City of Lahti’s industrial fund 31.12
22,160,337.13
-1,250,616.50
20,909,720.63
23,109,780.83
-949,443.70
22,160,337.13
City of Lahti’s damage fund 1.1
Transfers to fund
City of Lahti’s damage fund 31.12
10,199,768.93
66,318.27
10,266,087.20
10,190,365.43
9,403.50
10,199,768.93
Other own funds
31,218,691.68
32,402,989.91
125,676,742.31
-1,859,297.10
123,817,445.21
101,421,088.53
1,815,876.00
103,236,964.53
-3,002,815.90
20,580,480.68
546,339,737.52
550,526,851.65
CHANGE IN EQUITY ITEMS
Original own funds
Original own funds 1.1
Original own funds
Other own funds
City of Lahti’s 90th anniversary fund 1.1
City of Lahti’s 90th anniversary fund 31.12
Change in surplus (deficit) from previous periods
Surplus (deficit) from previous periods 1.1
Adjustments to previous periods
EQUITY
NOTES TO GUARANTEES AND CONTINGENT LIABILITIES
CITY OF LAHTI
2015
2014
456,500,000.00
456,500,000.00
386,000,000.00
386,000,000.00
MATERIAL ITEMS INCLUDED IN STATUTORY RESERVES ITEMISED
Pension reserve
Pension reserves
8,151,600.00
8,151,600.00
9,361,700.00
9,361,700.00
Reserve for environmental liabilities
240,000.00
4,359,297.10
4,599,297.10
240,000.00
1,859297.10
2,099,297.10
12,750,897.10
11,460,997.10
4,411,372.70
27,870,530.16
0.00
29.29
32,281,932.15
4,180,443.23
28,634,170.84
31,443.00
45.21
32,846,102.28
Debt to municipal federations in which City participates
Long-term
3,755,004.28
2,854,219.28
Short-term
Accounts payable
Advances received
Total
2,904,408.40
0.00
0.00
2,904,408.40
4,359,944.82
300.00
945,992.00
5,306,236.82
DEBT MATURING IN MORE THAN 5 YEARS
Debt maturing in more than 5 years
STATUTORY RESERVES
DEBT TO SUBSIDIARIES, MUNICIPAL FEDERATIONS IN WHICH
THE CITY PARTICIPATES, AND AFFILIATED AND OTHER HOLDING
PARTICIPATIONS
Debt to subsidiaries
Short-term
Accounts payable
Group accounts payable
Other debt
Total
CITY OF LAHTI
2015
2014
3,755,004.28
2,854,219.28
27,136,834.29
10,325,166.63
4,673,757.45
462,226.00
133,904.39
1,207,500.00
2,286,559.34
593,586.66
2,483,241.00
138,350.22
49,441,125.98
26,737,995.60
10,197,688.14
5,169,678.95
810,992.00
133,904.39
1,174,500.00
3,377,529.60
1,712,016.56
0.00
119,857.98
49,434,163.22
6,361,256.62
3,610,038.87
9,971,295.49
2,878,139.63
5,347,728.80
8,225,868.43
172,430,000.00
156,938,712.44
176,031,880.51
161,298,229.76
143,923.11
25,294.45
1,284,573.63
52,334.33
494,792,372.65
471,683,666.58
352,591.90
326,108.71
MATERIAL ITEMS INCLUDED IN DEFERRED LIABILITIES
Long-term deferred liabilities
Deferred liabilities regarding member municipalities, patient injury
liability
Short-term deferred liabilities
Amortised personnel expenses
wages
social security expenses
Deferred interest
Patient injury liability
Unused portion of Midwest Fund Ky capital investment
Advance payments for land use compensation
Advance payments of state aid and EU subsidies
Statutory accident insurance
Building contracts
Other deferred liabilities
Material items included in other deferred liabilities
TOTAL LEASING LIABILITIES (incl. VAT)
Payable in next financial year
Payable later
Total
Leasing contracts do not include material liabilities
subject to a termination and paying-off clause.
CONTINGENT LIABILITIES
Guarantees for Group entities
Original capital
Remaining capital
Guarantees for others
Original capital
Remaining capital
LIABILITY FOR MUNICIPAL GUARANTEE BOARD’S GUARANTEES
City’s share of Guarantee Board’s guarantees 31.12
The City’s share of potential liability in the Guarantee Board’s
fund’s liability, 31.12
CITY OF LAHTI
2015
2014
1,880,000.00
1,207,500.00
0.00
0.00
1,305,000.00
1,174,500.00
0.00
350,000.00
46,974,900.00
11,715,000.00
10,755,000.00
0.00
2,313,368.80
2,313,368.80
57,288.00
8,750,000.00
750,000.00
1,536,440.00
20,000,000.00
94,224,496.80
57,288.00
9,250,000.00
900,000.00
1,565,940.00
20,000,000.00
48,631,096.80
-9,183,829.33
156,000,000.00
-9,970,429.00
176,000,000.00
2,332,692.00
60,000,000.00
2,589,402.00
90,000,000.00
-7,035,987.54
115,000,000.00
-8,119,233.22
115,000,000.00
118,183.08
111,707.44
0.00
0.00
0.00
150,000.00
515,415.00
665,415.00
OTHER FINANCIAL LIABILITIES
Contractual liabilities
Liabilities arising from land use contracts
Advance payments for land use contracts
Land use contract - no termination clause
Compensation for termination of Mukkula land lease
Lease liabilities (incl. VAT),
valid in part until 30.04.2021
Contract for use of Lahti Concert Hall (excl. VAT),
valid in until 30.11.2035
Contract for use of Lahti Sports and Conference Centre 2014
(incl. VAT)
Contract for use of Lahti Sports and Conference Centre’s storage
space 2014 (incl. VAT)
Contract for practice use of ice arena, 1.1.2011–15.4.2033
Contract for use of Isku Ice Arena, 1.1.2011–31.12.2020
Projects and EU activities/Cost-sharing projects
Checking account with credit limit
Total contractual liabilities
Derivative contracts
Interest rate swaps
Market value
Value of underlying asset
Interest rate and currency swaps
Market value
Swaptions *)
Market value
*)Counterparty’s right to extend or terminate.
Value added tax refund liability 1.1.2012–31.12.2018
Pending court actions with the City as defendant
Court
Eastern Finland’s Court of Appeal
Päijät-Häme District Court
Total
Derivative contracts
The City’s management of borrowing and financial risks
follows the guidelines set for the City’s financial
operations. Financial risks are managed by diversifying
loans in accordance with the market situation at the
time of the drawing, taking account of the existing loan
portfolio, the determination of the new loan’s interest
rate, currency, and maturity, or by separate derivative
contracts.
Derivative contracts are used to hedge against interestrate and currency risks. The City uses derivative
contracts to offset the impact of changes in interest
rates by changing the interest rate and/or currency
allocation of fixed- and floating-rate loans on the basis
of cyclical conditions and interest-rate expectations, and
to reduce its interest expenses. The City aims to hedge
against any additional cost arising from interest-rate
movements and to keep the financial burden resulting
from borrowing as light and predictable as possible.
Uncertainty associated with the exchange-rate changes
related to loans denominated in foreign currencies – i.e.,
currency risk – is eliminated using currency and interestrate swaps at the time of the drawing of the loan.
The City uses derivative contracts for hedging of both
existing and future loans. In addition to hedging of single
loans with derivative contracts, there is hedging of the
entire loan portfolio without a loan-specific link. Also,
some of the hedging measures have focused on keeping
the loan portfolio at a reasonable level even decades
later, when current loans have reached maturity.
Interest-rate swaps
Below is a list of derivative contracts that is current as of
the end of the financial year. For each contract, the
purpose of the hedge has been described. Some of the
derivative contracts form fixed-contract packages
wherein the interest-rate risk has been hedged against
by means of a combination of several contracts, while
efforts have been made at the same time to keep the
financing cost reasonable and predictable. There were
three such packages at the end of the year. Derivative
contracts forming a package have been denoted with
the letter ‘A’, ‘B’, or ‘C’.
Package A includes the arrangement related to a single
30-year loan wherein the interest cost of the fixed-rate
loan is reduced for the first 15 years. After this, the
interest rate will be either the original fixed rate or a
variable market rate.
Both package B and package C contain arrangements for
a single loan wherein the interest cost of the fixed-rate
loan is reduced for the entire duration of the loan. At
the same time, the interest-rate risk of the future loan
portfolio has been hedged against by conversion of the
interest rate on future variable-rate loans to a fixed rate.
The effectiveness of a hedge of a future loan portfolio
depends on the market situation and whether the bank
exercises its option or not.
Interest-rate swap 1
Notional principal amount
EUR 17,000,000.00
Market value as of 31.12.2015 (incl. deferred interest),
per bank statement
Interest paid
Interest received
Instalment plan
Maturity date
EUR -898,557.00
5.10%
1 month Euribor + margin
Bullet
21.11.2016
Interest-rate swap 1 was entered into to hedge against the interest-rate risk of a single loan: The contract was used
to change a variable rate into a fixed rate. The principal value, maturity, and interest-payment dates of the loan are
equivalent to those of the interest-rate swap. The annual interest cost of the loan will not exceed 5.10% (EUR
867,000).
EUR 63,000,000.00
per bank statement
Interest paid
Interest received
Instalment plan
Maturity date
EUR -705,721.33
0.875%
3 month Euribor
Bullet
11.12.2024
Interest-rate swap 2 was entered into to hedge against the interest-rate risk of a single loan: The contract was used
to change a variable rate into a fixed rate. The principal value, maturity, and interest-payment dates of the loan are
equivalent to those of the interest-rate swap. The annual interest cost of the loan will not exceed 0.875% (EUR
551,250) plus the margin paid for the variable-rate loan.
EUR 20,000,000.00
per bank statement
Interest paid
Interest received
Instalment plan
Maturity date
EUR -3,075,921.00
3.36%
6 month Euribor
Bullet
15.9.2020
Initially, interest-rate swap 3 was associated with a loan maturing in 2015 and another interest-rate swap. This
interest-rate swap protects the entire loan portfolio: Through the contract, the variable interest rate is changed into
a fixed rate for 2015–2020, during which time the City has had and will have outstanding a loan / loans in the amount
of at least EUR 20 million with an interest rate linked to 6 month Euribor; the loan(s) will not be associated with
other derivative contracts. The annual interest cost of the EUR 20 million loan in 2015–2020 will not exceed 3.36%
(EUR 672,000) plus the margin paid for the variable-rate loan.
EUR 20,000,000.00
per bank statement
Interest paid
Interest received
Instalment plan
Commencement date
Maturity date
EUR -2,040,196.00
2.46%
6 month Euribor
Bullet
25.5.2035
25.5.2055
Interest-rate swap 4 protects the entire loan portfolio: The interest-rate swap is used to change the variable interest
rate into a fixed rate for 2035–2055, which requires that the City have outstanding a loan of an equivalent amount
with an interest rate linked to 6 month Euribor. With the interest-rate swap taken into account, the interest cost of
the EUR 20 million loan will not exceed 2.46% (EUR 492,000) plus the margin paid for the variable-rate loan.
Each party has the option to terminate the interest-rate swap early, on 25 May 2015, 25 May 2035, and 25 May
2045. The bank has an interest in early termination when the 6 month Euribor exceeds 2.46%. In such a case, the
bank will pay the City the current negative market value of the contract. If the 6 month Euribor is below 2.46%, the
City may decide to terminate the contract on any of the dates mentioned. If that is the case, the City will pay the
bank the current negative market value of the contract. The hedge of the loan portfolio through the interest-rate
swap will end if either of the parties exercises its option to terminate the contract early.
Interest-rate swap 5 (part of package A)
EUR 21,000,000.00
per bank statement
Interest paid
Interest received
Instalment plan
Maturity date
EUR -3,379,831.00
4.20%
6 month Euribor
Bullet
2.12.2019
Package A consists of interest-rate swaps 5 and 10 (with the right to terminate).
Interest-rate swap 6 (part of package B)
EUR 15,000,000.00
per bank statement
Interest paid
Interest received
Instalment plan
Maturity date
EUR 916,397.00
12-month Euribor
12-month Euribor + margin
Bullet
7.4.2020
Package B consists of interest-rate swaps 6 and 11 (with the right to extend).
Interest-rate swap 7 (part of package C)
EUR 17,000,000.00
per bank statement
Interest paid
Interest received
Instalment plan
Maturity date
EUR 2,047,632.71
12-month Euribor
Bullet
26.8.2022
Interest-rate swaps 7 and 12 (with the right to extend) form package C.
Interest-rate and currency swaps
Interest-rate and currency swap 8
EUR 30,000,000.00 / GBP 24,240,000.00
per bank statement
Interest paid
Interest received
Instalment plan
Maturity date
EUR 3,187,993.00
1 month GBP LIBOR + margin
Bullet
8.6.2017
By means of interest-rate and currency swap 8, a currency loan was converted into euros at the drawing and will
carry interest at a rate linked to the 12-month Euribor. Currency risk associated with currency fluctuations has been
eliminated. The principals, maturities, and interest-payment dates under the contracts are equivalent in value.
Interest-rate and currency swap 9
EUR 30,000,000.00 / SEK 270,000,000.00
per bank statement
Interest paid
Interest received
Instalment plan
Maturity date
EUR -855,301.00
1 month STIBOR + margin
Bullet
10.6.2021
By means of interest-rate and currency swap 9, a currency loan was converted into euros at the drawing and will
carry interest at a rate linked to the 12-month Euribor. Currency risk associated with currency fluctuations has been
eliminated. The principals, maturities, and interest-payment dates under the contracts are equivalent in value.
Interest-rate swaps with right to extend or terminate
Interest-rate swap 10 with right to terminate (part of package A)
EUR 21,000,000.00
per bank statement
Interest paid
Interest received
Instalment plan
Maturity date
Right to terminate
Market value as of 31.12.2015, per bank statement
Seller of the option
Buyer of the option
Right to terminate
EUR 10,867,380.00
6 month Euribor
4.57%
Bullet
1.12.2034
EUR 21,000,000.00
EUR -7,311,306.00
City of Lahti
Bank
28 November 2019 and 29 November 2029
Interest-rate swaps 5 and 10 (with the right to extend) form package A. This package has helped to reduce the
financing cost of a fixed-rate loan for 2004–2019. Later – in 2019–2029 and/or 2029–2034 – the interest to be paid
on this loan, depending on the market situation, will be either the initial fixed interest rate or a variable rate tied to
the six-month Euribor.
Until 2019, the annual interest of the EUR 21 million loan will not exceed 4.20% (EUR 882,000). The principal- and
interest-payment dates (for the fixed rate) of the loan are equivalent to those of interest-rate swap 5.
Interest-rate swap 10 with right to terminate includes the right for the bank to terminate the swap on 28 November
2019 or 29 November 2029. If the 6 month Euribor is lower than 4.57%, the bank will exercise its right to terminate
and the City will pay the initial fixed rate of 4.57% (EUR 959,700 p.a.) until the 2034 maturity date. If the 6 month
Euribor is higher than 4.57%, the bank will not exercise its right to terminate and the interest-rate swap will remain
in effect until the maturity date / expiry of the right to terminate, and the interest on the loan will be the 6 month
Euribor until 29 November 2029 or until the 2034 maturity date. The interest cost of the loan will then depend on
the market situation and the level of the 6 month Euribor. If the interest rate rises from the level of the time of
exercising of the option by one percentage point (i.e., to 5.57%), the annual interest would be EUR 1,169,700.
Interest-rate swap 11 with right to extend (part of package B)
EUR 37,000,000.00
per bank statement
EUR -4,631,378.00
City of Lahti
Buyer of the option
Bank
Interest paid
2.20%
Interest received
6 month Euribor
Instalment plan
Bullet
Commencement date
7.4.2020
Maturity date
7.4.2040
Interest-rate swaps 6 and 11 (with the right to extend) form package B. This package has been used to reduce the
interest cost of a fixed-rate loan in 2010–2020. At the same time, future rates have been changed into fixed rates
for 2020–2040, provided that the bank will exercise its option.
Interest-rate swap 6 has been used to reduce the interest cost of a fixed-rate loan by the margin applied to the swap
until maturity, in 2020. The principal- and interest-payment dates of the loan are equivalent to those of interest-rate
swap 6. The maturity date for both is in 2020.
Interest-rate swap 11 with right to extend is used to change the variable interest rate of future loans into a fixed
rate for 2020–2040, which requires that the City have outstanding a loan of an equivalent amount to an interest rate
linked to the 6 month Euribor. Interest-rate swap 11 with right to extend gives the bank the right to exercise the
interest-rate swap underlying the option. If the six-month Euribor on the expiry date of the option, 3 April 2020, is
lower than 2.20%, the bank will exercise its option and the interest-rate swap with notional principal of EUR 37
million will enter into force. From that date until 2040, the annual interest cost of the EUR 37 million loan will not
exceed 2.20% (EUR 814,000) plus the margin paid for the variable-rate loan. If the 6 month Euribor is higher than
2.20%, the option expires, the interest-rate swap will not be exercised, and the future loan portfolio will not be
hedged.
Interest-rate swap 12 with right to extend (part of package C)
Market value as of 31.12.2015, per bank statement
Buyer of the option
Interest paid
Interest received
Instalment plan
Commencement date
Maturity date
EUR 40,000,000.00
EUR -8,008,316.25
City of Lahti
Bank
2.84%
6 month Euribor
Bullet
26.8.2022
26.8.2042
Interest-rate swaps 7 and 12 (with the right to extend) form package C: This package has been used to reduce the
interest cost of a fixed-rate loan in 2013–2022. At the same time, the rate on future loans has been changed into a
fixed rate for 2022–2042, provided that the bank will exercise its option.
Interest-rate swap 7 has been used to reduce the interest cost of a fixed-rate loan by the margin applied to the swap
until maturity, in 2022. The principal- and interest-payment dates of the loan are equivalent to those of the interestrate swap. The maturity date for both is in 2022.
Interest-rate swap 12 with right to extend is used to change the variable interest rate of future loans into a fixed
rate for 2022–2042, which requires that the City have outstanding a loan of an equivalent amount to an interest rate
linked to the 6 month Euribor. Interest-rate swap 12 gives the bank the right to exercise the interest-rate swap
underlying the option. If the 6 month Euribor on the expiry date of the option, 24 August 2022, is lower than 2.84%,
the bank will exercise its option and the interest-rate swap with notional principal of EUR 40 million will enter into
force. From that date until 2042, the annual interest cost of the EUR 40 million loan will not exceed 2.84% (EUR
1,136,000) plus the margin paid for the variable-rate loan. If the 6 month Euribor is higher than 2.84%, the option
expires, the interest-rate swap will not be exercised, and the future loan portfolio will not be hedged.
3.1.3
NOTES TO PERSONNEL
CITY OF LAHTI
2015
City staff 31.12
General administration
Education
Cultural and recreational services
Technical administration
Total
143
2,629
2,319
196
203
5,490
Balance sheet units
Facility centre
Lahti Symphony Orchestra
Lahti City Theatre
Lahden Ateria, catering services
Lahden Servio, cleaning services
Lahden Tietotekniikka, IT services
Total
Total City
Fees charged on and settled from the fee of person in position of trust
Häme National Coalition Party
Häme Social Democratic Party
The Finns Party of Häme
Christian Democrats, Lahti
Christian Democrats, Nastola
Centre Party, Nastola
Centre Party, Päijät-Häme
Centre Party, Lahti
National Coalition Party, Lahti
The Finns Party of Lahti
Social Democrats of Lahti
The Green Party, Lahti
National Coalition Party, Nastola
The Finns Party, Nastola
Social Democratic mun. chapter Nastola
Left Alliance, Nastola
The Finns Party, Padasjoki
Communist Party of Finland
Left Alliance mun. chapter, Lahti
Total fees settled for persons in position of trust
2014
111
2,533
2,226
196
218
5,284
33
77
171
227
240
49
797
34
73
145
237
253
48
790
6,287
6,074
281
246
130
5,513
628
2,118
701
4,665
32,769
7,248
37,540
6,484
3,015
843
5,252
253
20
210
12,124
120,037
Auditor’s fees (VAT 0%)
PwC Julkistarkastus Oy
Auditing fees
Acquisition audit
Total fees
28,623.07
4,798.32
33,421.39
36,037.95
14,388.60
50,426.55
Total auditing fees
33,421.39
50,426.55
3.2
NOTES TO THE GROUP FINANCIAL STATEMENTS
Notes to the preparation of the Group financial statements
Scope of the Group financial statements
The consolidated Group financial statements include 34
subsidiaries, two foundations, and six municipal
federations of which the City is a member. Moreover,
the Group entities participate in six affiliated entities.
They have been consolidated using the equity method.
As Oy Kittilän Petsukka and the inactive Nanoscale Oy,
as small enterprises, have been excluded from the
consolidation (Accounting Act 6:3.1).
The consolidation includes the following subgroups:
Lahti Energia Oy, incl. LE Sähköverkko Oy; Lahti Aqua,
incl. Aqua Palvelu Oy, Aqua Verkko Oy, and LABIO Oy;
Lahden Talot, incl. Lahden Asunnot Oy, Lahden
Palveluasunnot Oy, Kiinteistö Oy Vesijärvenkatu 36, and
Oppilastalo Oy; Lahden Seudun Kehitys Oy - LADEC, incl.
its subsidiary Energon Oy; and Lahti Region Oy, incl. its
subsidiary Lahti Events Oy. Consolidated statements
have been prepared for these companies and included
in the Lahti Group figures.
Entities included in the Group financial statements:
Subsidiaries
Corporations
- Housing, real estate and housing corporations
- Corporations active in municipal business
- Other corporations
Foundations
Municipal federations
Affiliated and other holding participations
Non-consolidated entities
Total
Elimination of mutual ownership
The elimination of mutual ownership by the City and its
affiliated entities was performed using the par value
method. The indirect ownership in affiliated entities
through municipal federations has also been eliminated.
Internal transactions and profits
The mutual income and expenses, receivables and debt
of the Group entities, the City and the member
municipalities have been eliminated in the consolidated
profit and loss statement and balance sheet. Material
internal profits included in fixed assets have been
deducted.
Minority interests
Minority interests have been deducted from the Group
surplus/deficit in the consolidated profit and loss
statement and from the equity in the consolidated
balance sheet.
2015
2014
12
15
8
2
6
6
2
51
13
15
7
2
6
6
2
51
Adjustment to planned depreciations
Depreciations on the buildings of real estate companies
and housing corporations have been adjusted to align
with the plan, and the difference in the remaining values
has been entered as an adjustment to the depreciations
of the subsidiaries; the accumulated difference has been
used to adjust the surplus/deficit of previous periods.
Affiliated entities
Affiliated entities have been consolidated using the
equity method.
Changes in Group structure during financial year

Lahti University of Applied Sciences, which started
operations on 1 January 2015, was formed from
the higher vocational education section of the
Päijät-Häme
educational
and
municipal
consortium. The City of Lahti owns 56.43% of the
new university of applied sciences.

Työhönvalmennus Valma Oy, which started
operations on 1 January 2015, was formed from
the Tuoterengas section of the Päijät-Häme
educational and municipal consortium. During the
year under review, its name was changed to
‘Lahden Työn Paikka Oy’. It is a wholly owned
subsidiary of the City of Lahti.

On 9 June 2015, the City sold its shares in
Oppilastalo Oy to Lahden Talot Oy. The Group’s
shareholding did not change.

The halls and other spaces owned by the City were
consolidated under one company, which was
formed when Lahden Hallit Oy acquired Lahden
Tilatalot Oy from the City and the two were
merged. The company’s new name as of 22
September 2015 is Spatium Toimitilat Oy. The
Group’s shareholding did not change.

Lahden Seudun Kuntatekniikka Oy was placed in
liquidation on 4 January 2016. The company will
remain active through 2016, but its stock has been
written down in the 2015 accounts of the City. Its
subordinated loan from the City has been written
off as a loss.
Comparability with the previous financial period
Per new guidelines, the depreciation difference and
voluntary reserves were divided in 2015 between the
change in calculated tax and the surplus/deficit for the
year in the consolidated profit and loss statement, and
between equity and calculated tax liability in the
consolidated balance sheet. The reference data from the
2014 accounts have been adjusted accordingly.
Group entities have concluded real-estate deals with
each other, generating Group-internal capital gains in
the amount of EUR 0.5 million. The capital gains are
eliminated in the consolidated statements.
Adjustment of unit price funding to state share
The unit-price funding paid to the education consortium
and the University of Applied Sciences in the amount of
EUR 68.8 million was transferred from operating income
to state shares in the consolidated statement.
Treatment of real estate tax
The real-estate taxes in the amount of EUR 4.0 million
paid by the consolidated entities to the municipality
have been eliminated.
Ownership elimination difference
The following ownership elimination differences were
included in the accounts:
 positive elimination differences in the amount
of EUR 0.8 million
 negative elimination differences in the amount
of EUR 0.2 million
3.2.1
NOTES TO THE GROUP PROFIT AND LOSS STATEMENT
LAHTI GROUP
Operating income by business function
Education and cultural services
Utilities, external
Housing and real-estate services, external
Other services, external
Total income from operations
Extraordinary income and expenditure
Other extraordinary income
Loan receivable sold to Kuntarahoitus (Municipality Finance)
Other extraordinary income
Capital gains and losses from fixed assets
Capital gains
Capital gains, Land and water areas
Capital gains, Buildings
Capital gains, Other
Capital gains
Capital losses
Capital losses, land and water areas
Capital losses, Buildings
Capital losses, Other
Capital losses
Change in statutory reserves
Pension reserve
Pension reserve 1.1
Decrease
Pension reserve 31.12 (City of Lahti)
Reserve for environmental liabilities 1.1
Reserve for environmental liabilities 31.12
(City of Lahti)
Deductions for shares in municipal federations (-)
Increase
Decrease
Other statutory reserves itemised
City of Lahti
Lahden Seudun Kehitys Oy - LADEC
Päijät-Hämeen Jätehuolto Oy (waste management)
Päijät-Hämeen sosiaali- ja terveydenhuollon ky (social
services and health care)
Total reserves
2015
2014
200,869,251.32
21,478,289.42
220,929,364.90
50,840,906.31
47,773,444.85
541,891,256.80
176,372,696.43
34,697,959.33
227,056,252.41
54,382,476.12
46,097,850.86
538,607,235.15
0.00
0.00
2,990,333.33
2,990,333.33
1,960,532.28
1,360,114.92
680,383.52
4,001,030.72
1,154,453.02
951,713.04
427,989.51
2,534,155.57
0.00
0.00
-845,911.77
-845,911.77
0.00
-139,248.39
0.00
-139,248.39
9,361,700.00
-1,210,100.00
8,151,600.00
10,652,300.00
-1,290,600.00
9,361,700.00
240,000.00
240,000.00
240,000.00
240,000.00
6,302,095.55
0.00
6,411,292.35
-1,433,881.58
11,279,506.32
7,733,815.83
-3,453,452.50
2,736,193.67
-714,461.45
6,302,095.55
4,359,297.10
100,000.00
2,259,535.13
4,560,674.09
0.00
0.00
2,253,610.56
4,048,484.99
19,671,106.32
15,903,795.55
3.2.2
NOTES TO THE GROUP ASSETS
LAHTI GROUP
Notes to the assets
Subscription fees of properties
Other land and water areas
Total land and water areas, excl. revaluation
Revaluation
2015
19,652.50
537,983.43
119,070,262.34
119,627,898.27
288,733.86
119,916,632.13
2014
187,631.97
116,196,037.31
116,383,669.28
326,500.60
116,710,169.88
Revaluation of buildings
Revaluation of buildings 1.1
Deductions for shares in municipal federations
Decrease
Revaluation of buildings
19,652.50
6,065,150.41
-33,301.39
-1,111,665.07
4,920,183.95
-721,448.92
6,065,150.41
Revaluation of shares
Revaluation of shares, 1.1
Deductions for shares in municipal federations
Revaluation of shares
19,652.50
51,985.91
-285.43
51,700.48
73,019.50
-21,033.59
51,985.91
Tax receivables
State aid and EU subsidies
Energy payment receivables
Kela payments for occupational health care
Other deferred assets
538,800.87
148,181.69
4,230,979.46
3,310,103.15
1,677,349.14
10,617,317.83
20,522,732.14
84,892.73
76,238.24
4,816,958.90
3,354,095.84
2,023,059.18
5,954,616.51
16,309,861.40
Deferred interest
Deferred assets incl. deferred interest
405,272.36
20,928,004.50
872,185.41
17,182,046.81
6,786,599.33
3.2.3
NOTES TO THE GROUP LIABILITIES
LAHTI GROUP
2015
2014
Notes to the liabilities
Change in equity items
Original own funds
Original own funds 1.1
Original own funds
394,306,416.53
394,306,416.53
394,306,416.53
394,306,416.53
Foundation equity
Foundation equity, 1.1
Foundation equity
74,002.69
74,002.69
74,002.69
74,002.69
Revaluation reserve
Revaluation reserve 1.1
Revaluation reserve, deductions for shares in municipal
federations
Deductions
Revaluation reserve
6,750,396.90
-35,379.52
7,615,086.58
0.00
-1,147,639.13
5,567,378.25
-864,689.68
6,750,396.90
Other own reserves
Damage fund
Damage fund, 1.1
Transfers to fund
Damage fund
10,199,768.93
66,318.27
10,266,087.20
10,190,365.43
9,403.50
10,199,768.93
Other own funds
Other own funds, 1.1
Transfers to fund
Transfers from fund
Other own reserves
38,693,532.65
1,182,846.90
-2,616,058.14
37,260,321.41
39,518,005.02
124,971.33
-949,443.70
38,693,532.65
Other own funds
47,526,408.61
48,893,301.58
Surplus (deficit) from previous periods 1.1
Increase in / deductions for shares in municipal federations
Adjustments to previous periods
93,035,468.59
-115,504.54
78,697.10
-2,055,083.23
90,943,577.92
80,267,158.26
0.01
1,939,984.78
597,267.54
82,804,410.59
Surplus for the financial year
-1,063,459.06
10,231,058.00
LAHTI GROUP
Material items included in statutory reserves, itemised
Pension reserve
Pension reserves
2015
2014
8,151,600.00
8,151,600.00
9,361,700.00
9,361,700.00
240,000.00
11,279,506.32
11,519,506.32
19,671,106.32
240,000.00
6,302,095.55
6,542,095.55
15,903,795.55
1,160.00
30,082,970.07
30,084,130.07
1,740.00
28,445,734.88
28,447,474.88
Tax liabilities
Patient injury liability
Advance payments of state aid and EU subsidies
Other deferred liabilities
254,429.48
65,375,164.03
1,083,023.33
2,883,685.54
14,510,684.79
84,106,987.17
1,803,170.01
63,968,297.75
1,590,597.03
4,303,527.99
10,364,563.28
82,030,156.06
Deferred interest
Deferred liabilities incl. deferred interest
5,370,364.41
89,477,351.58
6,364,331.01
88,394,487.07
Total statutory reserves
Long- and short-term debt, itemised
Other debt to others
Other debt, entry fees
GROUP GUARANTEES AND CONTINGENT LIABILITIES
LAHTI GROUP
2015
2014
4,031,804.79
0.00
4,031,804.79
6,190,744.20
150,518.54
6,341,262.74
Loans from public corporations secured by mortgage
Loans from public corporations secured by shares
Loans from public corporations
213,771,326.74
80,000.00
213,851,326.74
94,790,729.11
0.00
94,790,729.11
Debt secured by mortgage and share collateral
217,883,131.53
101,131,991.85
9,636,582.98
0.00
177,498,303.93
165,057,492.18
187,134,886.91
165,057,492.18
0.00
150,518.54
0.00
187,134,886.91
150,518.54
165,208,010.72
Other collateral used for own debt
Real estate mortgages
Book value of pledged securities
Deposits
Guarantees
Other
Other collateral used for own debt
4,129,962.04
1,580,876.97
2,000.00
0.00
187,912.15
5,900,751.15
8,809,035.93
0.00
1,979,439.60
35,035.20
422,649.59
11,246,160.32
Collateral given for debt of others
Guarantees
Collateral given for debt of others
2,813,520.51
2,813,520.51
2,813,520.51
2,813,520.51
Leasing liabilities
Leasing liabilities due within one year
Leasing liabilities due later
Leasing liabilities
15,317,071.48
18,579,464.19
33,896,535.67
2,878,139.63
5,347,728.80
8,225,868.43
Other rental liabilities
11,880,930.66
11,880,930.66
5,852,675.02
5,852,675.02
265,051.11
133,804.95
1,405,701.63
165,891.83
494,792,372.65
471,683,666.58
352,591.90
326,108.71
Debt secured by mortgage and share collateral
Loans from financial and insurance institutions secured by mortgage
Loans from financial and insurance institutions secured by shares
Real estate and shares used as collateral
Real estate mortgaged as collateral for loans from financial and
insurance institutions
Real estate mortgaged as collateral for loans from public
corporations
Real estate mortgaged
Shares pledged as collateral for loans from financial and insurance
institutions
Shares used as collateral
Real estate and shares used as collateral
Other contingent liabilities
Contingent liabilities for debt of others
Original capital, guarantees
Remaining capital, guarantees
Liability for Municipal Guarantee Board’s guarantees
City’s share of Guarantee Board’s guarantees 31.12
City’s share of potential liability in the
Guarantee Board’s fund, 31.12
LAHTI GROUP
2015
2014
0.00
4,298,002.64
3,087,500.00
20,000,000.00
731,478.60
69,956,783.78
17,779,483.94
1,204,926.22
140,593,600.00
257,651,775.18
1,915,940.00
1,912,009.02
2,479,500.00
15,400.00
0.00
25,863,568.80
4,257,679.97
1,211,578.53
134,876,600.00
172,532,276.32
Notional value of outstanding derivative contracts
Forward currency contracts
Market value
0.00
0.00
1,697,013.00
826.01
Currency options
Market value
0.00
0.00
290,618.82
-941.75
547,058,923.32
-20,819,486.03
583,636,755.87
-23,397,773.13
62,526,750.00
2,701,536.86
92,964,150.00
2,795,500.20
115,000,000.00
-7,035,987.54
115,000,000.00
-8,119,233.22
14,532,624.00
-6,450,738.00
30,895,236.00
-7,426,092.00
739,118,297.32
-31,604,674.71
824,483,773.69
-36,147,713.89
Other off-balance sheet arrangements
Municipality’s deficiency guarantees for mortgage loans
Contractual liabilities
Liabilities arising from land use contracts
Contractual redemption obligations
Contractual refund obligations
Rental liability, effective until 30.4.2021
Value added tax refund liability
Refund liability for state aid for founding projects
Credit limit on cheque account
Other off-balance sheet arrangements
Interest-rate swaps
Value of underlying asset *)
Market value *)
Interest-rate and currency swaps
Market value
Interest-rate swaps with right to extend and terminate **)
Market value
Electricity derivatives
Value of underlying asset *)
Market value *)
Total derivative contracts
Market value
*) Reference data from 2014 adjusted
**) Counterparty’s right to extend or terminate
Other contingent liabilities of Group entities
Lahti Energia Oy Group has a liability for the participation fee in the joint air-quality monitoring agreement
concluded for the City
for 2016–2020, in the amount of EUR 242,117.
Lahti Energia Oy Group has a contractual obligation to purchase coal for approximately three months’
consumption
at a reasonable market price, with the possibility of negotiations.
Through the shares it owns in Voimaosakeyhtiö SF, Lahti Energia Oy has made the commitment to further fund
Fennovoima Oy’s Hanhikivi 1 nuclear power project with the total amount of EUR 34,730,540 over the period
extending from early 2014 until the commissioning of the plant. The company has also agreed to partake, in
proportion to the size of its shareholding, in the administration and other annual expenses of Voimaosakeyhtiö
SF, estimated to amount to EUR 1.27 million by 2024.
In accordance with decisions taken in 2015, the Lahti Energia Oy Group is, in proportion to its shareholdings in
EPV Energia Oy and Suomen Hyötytuuli Oy (each a so-called mankala company), responsible for wind-farm
construction projects in a value of approximately EUR 75 million, of which EUR 18 million is equity, over the
next two years. When in operation, the farms will, over 12 years, be entitled to a subsidised feed-in tariff,
which will eliminate in-service risks.
Emission rights
The production facilities of Lahti Energia Oy Group generated 411,196 tonnes of emissions in 2015. On the
balance-sheet date, the transferable EUA rights amounted to 505,200 tonnes and the CER rights to 24,300
tonnes. The market value of these rights is EUR 4,165,137.

L CITY OF LAHTI FINANCIAL STATEMENT 2015 …

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