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CITY of GOTHENBURG ANNUAL REPORT 2010 » Some Events During the Year Photo: Klas Eriksson

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CITY of GOTHENBURG ANNUAL REPORT 2010 » Some Events During the Year Photo: Klas Eriksson CITY OF GOTHENBURG ANNUAL REPORT 2010 » Some events during the year Photo: Klas Eriksson Financial earnings improved The City’s earnings for 2010 totalled 1,479 MSEK after excluding a non-recurrent item affecting re- sponsibility. This means that earnings exclusive of non-recurrent items improved by over 1,200 MSEK compared with the previous year. Two important explanations for the improvement were greater tax revenue and the government’s business cycle support, which was largely temporary during 2010. Another explanation was a curb in the trend of costs in activities, in the form of among other things a reduction in the volume of personnel. The strong earnings before non-recurrent items gave the City the opportunity to accommodate a large part of the financing of the Western Sweden package in 2010. This will release financial scope in the next few years. Most of the City of Gothenburg Groups and companies also showed strong financial earnings for 2010. Earnings after financial items totalled 733 MSEK for the companies. Action plan for stricter The District Committees internal control and openness were reorganised Work was started in 2010 to reinforce internal At the beginning of 2010 the City Council decided control and openness in the City of Goth- to combine the 20 District Committees into 10 from enburg. The background was suspicions of 2011. Extensive work was done during the year to bribery and other irregularities in certain handle its implementation, for example new parts of the city. The suspicions are being joint forms of organisation have been investigated by the police and the public prepared. prosecutor. The Chief Executive Officer has been instructed to look into what can be done to Environmental prevent irregularities occurring in the future and to prepare measures to strengthen efforts were made openness. This led to an action plan that A number of efforts were made was decided by the City Council in February during the year to improve the 2011. environment in Gothenburg. One The action plan covers among other such project was Gryaab AB’s exten- things measures to reinforce internal sion project for better nitrogen and phos- control, a joint construction process for phorus purification that was made ready at the end the city, a whistleblower function, greater of May 2010. The plant is significant in enabling focus on training and a review of rules, national, regional and local environmental goals to guidelines and policies. be met. Gothenburg model for home-help introduced The Gothenburg model for home-help services was introduced in 2010. This means that the individual has the time decided on at his/her disposal. For all home-help, even72,5 if it is not service, work has been done on Grades results in year 9 move matters of infl uence, within the scope of in the right direction work on salutogenic elderly care. In the spring of 2010, 72.5 per cent of the pupils attained at least a pass in all subjects and could therefore leave upper secondary school with complete grades. This was a rise of 1.5 percentage points compared with 2009. Both the national average and the results in Stockholm and Malmö show an opposite trend. Photo: Klas Eriksson On the other hand, the proportion of pupils that gain complete grades is still lower in Goth- enburg, compared with the national average. Financial assistance was stabilised The gradually rising cost level for fi nancial assistance in 2009 was stabilised in 2010 at a high level. The cost of fi nancial assistance was 1,094 MSEK, which is a rise of almost 9 per cent compared with 2009. Western Sweden package decided Several decisions were taken during the year to create future infrastructure in the city. Negotia- tions with the government on a Western Sweden infrastructure package, where the greater part of the investments will occur in Gothenburg, proceeded. Planning for Västlänken (a train tunnel under the city) could thereby be started. Also included in the package is a congestion charge system, to be introduced in the city in 2013. Planning for Central River City Work on expanding pre-school gathered speed services continues Work on planning to strengthen the regional During the year the number of pre-school places rose core, Central River City (Älvstaden), continued by about 1,000 to meet the requirement for full cover. during the year. A special project led by the At the end of the year 26,000 children were enrolled City Executive Board to prepare a vision for in pre-school activities, which is a rise of four per cent this area has been initiated. compared with the end of 2009. Structure of the Annual Report The City of Gothenburg Annual Report is submitted by the City Executive Board to the City Council. It is also intended for external stakeholders in the form of lenders, suppliers and other public authorities. The Annual Report is produced by the City Offi ce for the City Executive Board. By way of introduction in the Annual Report, the Chairman of the City Executive Board, Anneli Hulthén, makes summarising comments on the past year. The City’s organisation and the members of the City Executive Board are also shown. The City of Gothenburg Annual Report is then divided into four major blocks: BLOCK 1 BLOCK 3 Administration Report » Municipal City of Gothenburg » Financial analysis and accounts Th e fi rst block contains the Administration Re- port, which according to the Municipal Account- Th e block opens with an in-depth fi nancial analy- ing Act is to be included in the Annual Report. It sis of the City’s accounts. By the municipal City comprises a summary of the Annual Report with a of Gothenburg is meant the committees and the focus on essential parts of the City’s economy and fi nancial administration. Th en in the “fi nancial po- activities. Th e City of Gothenburg Administra- sitions” section an analysis is made of the City of tion Report opens with an analysis of the outside Gothenburg’s major fi nancial commitments in the world and a summarised fi nancial analysis of the form of borrowing, among other things. Th e sec- City and the combined accounts. A follow-up of tion is followed by the City’s fi nancial statements, the City Council’s prioritised goals is also pre- notes and accounting principles. Finally, the block sented. A personnel economy report is also made gives a brief description of the fi nancial results in the Administration Report. In conclusion, an of the district committees and other committees, assessment of the future is made, illustrating the followed by the City’s operational and investment opportunities and risks of the City of Gothenburg accounts. on the basis of known conditions. BLOCK 2 BLOCK 4 Activities of the City of Gothenburg» Combined accounts » Financial analysis and accounts In this block parts of the activities conducted by the City of Gothenburg committees and com- Group accounts are called combined accounts in panies in 2009 are shown. Th e block is divided the municipal sector. First in this block is shown a into the following areas of activity: education, brief fi nancial analysis of the combined accounts. individual and family care, functional impair- Th is is followed fi nancial statements, notes to the ment, elderly care and home medical care, urban accounts and accounting principles. After this a development, environmental work and climate short analysis is made of Göteborgs Kommunala adaptation, public health, culture and leisure, Förvaltnings AB (GKF), which in turn is followed equal opportunity and diversity and fi nally, by a number of earnings and investment analyses organisation development and exercise of public of some of the larger Groups and companies in the authority. In each area, important events and City of Gothenburg. Finally, all the larger Groups trends are described from diff erent perspectives. and companies are shown in tabular form, where Each area concludes with a brief assessment of earnings, total assets and various key ratios are the future. presented for each individual Group or company. 2 Contents 4 The Chairman of the City Executive Board 58 Financial key ratios City of Gothenburg On one spread there are a number of fi nancial key 6 Organisation of the City of Gothenburg ratios for the City of Gothenburg. 8 City Executive Board 2010 59 Financial profi le for the City of Gothenburg A brief analysis is made here of how the City of Gothen- burg has developed fi nancially in recent years in relation BLOCK 1 I ADMINISTRATION REPORT to other municipalities in Västra Götaland County. Development of the Gothenburg community 11 60 Financial positions The purpose of this section is to describe com- An account is given in this section of the City of Goth- munity development in Gothenburg from the point enburg’s fi nancial commitments in the form of borrow- of view of the outside world. ings. 14 brief fi nancial analysis 62 The City’s Income Statement, Funds State- A brief analysis is made here of the most important ment, Balance Sheet, notes and accounting fi nancial trends, both in the City and the combined accounts (the Group). principles 16 Follow-up of prioritised goals 2010 72 Financial analysis of the committees In this section the City Council’s 18 prioritised goals A brief analysis is given on two pages of the fi nancial for 2010 are followed up. performance of the District Committees and other committees. 19 Personnel A description of “essential personnel conditions” in 74 Operational and investment accounts the City of Gothenburg is given here. 22 Assessment of the future BLOCK 4 I COMBINED ACCOUNTS Expectations of the future are discussed in the as- – FINANCIAL ANALYSIS AND ACCOUNTS sessment of the future, based on concrete, known circumstances.
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