City of Stockholm Annual Report 2013

The Capital of Scandinavia

Introduction 4 The year in breif 6 Foreword 8 Administration report How the City is governed 24 How the City is governed 29 Quality and renewal 32 International The City of Stockholm Annual report gives you an overview of the City's finances and operations during 2013. The report covers Enterprise both the City's committees and the operations 34 Enterprise carried out through joint stock companies. A separate Annual Report is also produced for 37 Financial assistance Stockholms Stadshus AB and the companies 40 The Environment which are part of the Group. 43 Homes and home environments Additional copies of the Annual Report may 46 Traffic and infrastructure be ordered from the City Administration Office: 48 Culture and sports Finansavdelningen, 52 The living enviroment Stadshuset, 105 35 Stockholm 54 Choice and diversity Tel: 508 290 00 switchboard Fax: 508 293 60 56 Pre-schools and schools [email protected] 62 The care sector

The Annual Report for Stockholms Stadshus 68 The City as an employer AB may be ordered from: 70 A cost-effective city Stockholms Stadshus AB 105 35 Stockholm Tel: 508 290 00 switchboard Fax: 508 290 80 Economic and financial analysis [email protected] 74 General economic analysis 10052 Stadsledningskontoret 2014-04 76 Economic and financial analysis Production The City Administration Office's Finance Apartment in collaboration with Annual Financial Statements Blomquist AB 88 Income statement and statement of cash flows Editor Charlotte Goliath, Elin Andréasson 89 Balance sheet and Eva Bowden (photo) 90 Accounting policies Layout and production of original Blomquist AB 93 Notes Cover photo 105 Auditor's report Yanan Li, Colourbox, Vision image: Tele2 Arena, 106 Operational outcome Inside cover: Fredrik Persson 109 Key figures for committees Repro and printing Edita Västra Aros 2014 111 Stockholmers

city of stockholm annual report 2013 3 Safe and reas- The year in breif suring care for the elderly Satisfaction with the City's care for the elderly remained high during 2013, and rose within a number of areas. Throughout 2013, the City Council also pri- oritised skills development for City employees involved in care for the elderly. PHOTO: JANY PLEVNIK JANY PHOTO: PHOTO: LIESELOTTE VAN DER MEIJS VAN LIESELOTTE PHOTO:

A business-friendly city Prevention The City of Stockholm was designated of drug misuse the Growth Municipality of the Year for The Social Services Administration, 2013. Stockholm’s innovative strength, in collaboration with the City District attractiveness to major new enterprises, Administrations’ prevention coordi- dedicated support for the business nators, has initiated a programme of sector and clear sustainability profile preventive action against cannabis. A were all cited as reasons for the City number of educational and infor- being given the award. mation projects on cannabis have been arranged for both parents and

PHOTO: SARA MC KEY PHOTO: professionals. Sustainable environ- Freedom of choice Cultural Year 2013 ment for living Simple and accessible information In August, the Stockholm Culture Festi- Stockholm’s Housing Company has is vital if Stockholmers are to ex- val and the Youth Festival, We Are Sth- implemented energy efficiency im- ercise their freedom of choice, for lm, took place, breaking attendance provements as part of a refurbishment example with respect to pre-schools. records by a considerable margin. programme. As part of this approach, Liljevalchs had around 20,000 more the company responsible for school visitors than expected, and August – buildings, Skolfastigheter i Stockholm en djefla utställning [an exhibition on AB (SISAB), implemented measures Strindberg] , was awarded the museum during 2013 which have reduced ener- sector’s highest award, ”Exhibtion of gy consumption by around 8 percent. the Year”. PHOTO: XXXX PHOTO: PHOTO: JANY PLEVNIK JANY PHOTO:

An expanding city Following a quieter period, housing construction has again accelerated. Overall, construction started on 6,670 apartments during 2013, in- cluding refurbishment and new construction. The construction of 5,372 new homes began, an increase of 69 percent compared to 2012. PHOTO: LENNART JOHANSSON LENNART PHOTO:

PHOTO: LIESELOTTE VAN DER MEIJS Strong finances The City as an The City of Stockholm was again employer awarded the highest possible credit Staff surveys show that the rating from the international credit City’s staff are committed rating Institute, Standard & Poor’s, with and motivated to improve the short-term and long-term credit ratings City's operations, and they of AAA/Stable and A-1+ respectively. appreciate that their work is meaningful. PHOTO: SAMI SALMAN PHOTO:

PHOTO: MATS BÄCKER PHOTO: FREDRIK PERSSON Childcare and education The Swedish Schools Inspectorate's assessment is that the vast majority of pupils are given an education A city in work delivered through goal-directed work. During 2013, benefit dependency continued to fall. The proportion of people receiving benefits dropped by 2.0 percent in relation to popu-

PHOTO: SAMI SALMAN PHOTO: lation. PHOTO: LIESELOTTE VAN DER MEIJS

4 city of stockholm annual report 2013 city of stockholm annual report 2013 5 A flourishing Stockholm Stockholm maintained its strong position as Sweden’s engine for growth the City is increasingly publishing data as open data which every- concept developed by the architect, Peter Celsing. Kulturhuset during 2013. This growth is due to an increase in population, employment one can use and benefit from. Stadsteatern has opened for groundbreaking ideas and inter-disci- and new businesses, incontrovertible evidence of Stockholm’s attractive- Pre-schools and compulsory schools are currently facing a plinary artistic approaches. major requirement for expansion, and a continuous and substan- In 2013, the City's new arena, the Tele 2 Arena, was officially ness. The combination of a strong local economy and clear ambitions for tial expansion programme is in progress. The number of children opened in the Globe area. The arena is an important facility for the future ensure a stable foundation for a city with an enviable living in the City's pre-schools is continuing to increase, and, in 2013, an both Stockholmers and the tourist industry. environment, where people want to live and work – a world-class city. average of 53,000 children were enrolled in the City's pre-schools Stockholm has an excellent provision of care for the elderly, and educational care. Since 2005 over 2,000 new children have with a diversity of players and considerable freedom of choice for hroughout the year, our work has been guided by the homes by 2030. In 2013, there were 6,670 new housing starts, the been given pre-school places every year. Stockholm’s pre-schools the elderly. The results of user surveys show that satisfaction rates City’s vision; at least 140,000 additional homes by 2030, highest rate of housing construction since 2006. have a higher staff/child ratio than those in the rest of Sweden. are increasing among older people living in special accommoda- securing agreements to ensure the expansion of infra- We are making substantial efforts to reduce exclusion and User surveys show that, on the whole, parents are extremely tion. Targeted improvements in resource provision – not least in Tstructure – from public transport to cycle and vehicle isolation among disabled people. The construction of sheltered satisfied with the city’s pre-school provision. dementia care – and a clearer focus on quality and follow up are routes – and achieving a high standard of quality throughout the housing remains a priority. During 2013, around 82,000 pupils attended compulsory achieving results. In recent years, the City Council has prioritised City’s service and agency provision. During the year, an historic agreement on the expansion school in Stockholm, an increase of 3,000 on the figure for skills development for employees, both staff and managers, in More and more people are seeing their future in Stockholm, of four underground railway lines was signed. The agreement 2012. Pupils in Stockholm achieve good results in comparison care for the elderly. A model for in-depth quality monitoring in both in the City itself and in the Region. During 2013, the City’s strengthens the County's accessibility infrastructure, at the same with those in other municipalities. The qualifications awarded in the care for the elderly sector is under development. The main population grew by 16,465 (equivalent to 2 percent). The number time as it facilitates the construction of new homes. It will make year 9 showed an improvement over 2012. In particular, results feature of this monitoring approach is that it focuses on quality of visitors also continues to rise. life easier for Stockholmers. improved in schools facing more challenging socio-economic in the actual interaction between the elderly and staff in the resi- Over 650,000 people in the County are employed in knowl- In addition to creating opportunities for new housing, the new conditions. The Education Administration is continuing its efforts dential units. During the year, the approach to support and service edge-intensive sectors, which represents 60 percent of total underground stations will improve public transport in existing to improve results in schools which have the lowest figures for for local people with disabilities reflected a clear user-focus and employment. The labour market in Stockholm City is even more areas such as Sofia in Södermalm and in Hammarby Sjöstad. achieving targets. The City intensified this effort in 2013 by improved accessibility. knowledge-hungry, with almost 400,000 working in knowl- Hagastaden Station will also make a major contribution to the initiating a purpose-design programme involving 17 focus schools In both individual and family care, considerable weight contin- edge-intensive sectors, approximately 65 percent of total em- attraction of the new City districts. which have the lowest figures for achieving targets. Stockholm ues to be given to evidence-based and knowledge-based methods ployment. During the year, there were 20,924 business start-ups The work on the Stockholm Bypass is continuing. The bypass also invests in summer schools to ensure that all children achieve and treatment models. in Stockholm. In its Networked Society City Index 2013 Report, will link the northern and southern parts of the County, relieve the targets. The City's dedicated work to increase the proportion of chil- Ericsson ranked Stockholm as the best in the world in using pressure on the Essingeleden and the inner City and increase the During 2013, around 25,800 students attended upper second- dren and young people requiring intervention from social services information and communications technology (ICT) as a vital tool cohesion of the whole Stockholm Region. It will also be an im- ary schools in Stockholm. The results in the City of Stockholm’s who do not need to have their cases reopened within 12 months in the City’s growth. portant factor in removing heavy traffic from the City centre. upper secondary schools remained high, and are relatively is showing excellent results. During 2013, 82.8 percent did not A growing city creates opportunities, but also challenges. If The City Line is planned to start operating commuter traffic in constant over time. The proportion of students awarded a leaving require additional assistance within 12 months of the completion Stockholm succeeds in maintaining the influx of new ideas and December 2017. The City Line is an integral part of a modern and certificate is rising, and the proportion of students who qualify for of the intervention. people, the City will be even more competitive against other glob- efficient public transport network which benefits both Stockholm entry to higher education remains high. Staff surveys show that the City’s staff are committed and al metropolises. One of the keys to the future is in welcoming the and the whole country. Skilled and dedicated teachers are a key factor in achieving motivated, and they appreciate that their work is meaningful. The growth in population and using it to best advantage. Cycling is a prioritised activity to facilitate mobility in modern higher levels of knowledge in Stockholm's schools. For this active co-creation index was at 79, which is a high level compared The Stockholm Region is solidly placed to meet the major Stockholm. Throughout the year, substantial investments have reason, the City of Stockholm has implemented an essential long- with other municipalities. challenges it faces in remaining in the top flight of global metro- been approved for improving the cycle infrastructure. term investment to create additional career paths in the teaching politan regions. The citizens of our City deserve a good lifestyle. The refur- profession. The City's operations are cost-effective bishment of Million Programme housing areas is ongoing, and During the year, Kulturhuset and Stadsteatern merged. The annual report demonstrates that Stockholm is in a very strong Stockholm is an attractive, safe, accessible and will continue for a long time into the future. After renovation Stockholm was presented with an ”all arts centre” in line with the financial position and at the same time, provides Stockholmers flourishing city for residents, enterprise and visitors and refurbishment, the Million Programme areas will be up-to- with a very good level of service and the Administrations carry Throughout its history, Stockholm has been built by people who date and environmentally friendly. In addition to the extensive out their duties in conformity with legal certainty. The Adminis- seek their future in our City. This is how it was in the 16th Cen- refurbishment work, it is also vital to boost the City's work on the trations in general are good at keeping within their budgets and tury, and it was still the case in 2013 and will continue to be so in outer suburbs, which is currently taking place in accordance with report surpluses. the future. We need to take advantage of the knowledge and expe- the visions for the Järva, Hässelby-Vällingby and Söderort areas. Since the transfer of power in 2006, the Alliance has prior- rience of all the people who are here already as well as those who The enlargement of Norra Djurgårdsstaden and Hagastaden is itised stable finances and has focused on core activities. This are moving to the City, if it is to continue to grow and develop. continuing. Stockholm is growing outwards towards Husarviken means that our finances are now on a very firm footing, the staff Stockholm is a dynamic city with a strong business sector and and merging with Solna. are dedicated and skilled, and our focus is on being a safe haven a vibrant labour market. in difficult times. We were given a clear sign of this during the The Labour market in Stockholm continued to grow in Quality and freedom of choice is developed and year, when Standard & Poor’s again gave the City the highest strength during the year. The proportion of people dependent on improved long-term credit rating, AAA. financial assistance continued to fall and is now below 2 percent, Stockholmers can now choose providers in areas such as pre- Finally, on behalf of the City, we would like to thank all our which is the lowest level since the information was first recorded school, school, care for the elderly and support and service for the expert staff and contractors for your work and strong commitment

in the 1980s. The City's major campaign on summer jobs was disabled. The right to choose is central. The City's most important DER MEIJS VAN LIESELOTTE PHOTO: during 2013. Together with you, we are creating a world-class highly effective. A total of around 5,700 young people obtained tool for facilitating freedom of choice is to provide information Stockholm. summer employment arranged by the City in 2013. and guidance to residents on the various options available. Exam- We have very high, long-term ambitions for housing construc- ples are Jämför service [Compare service] on the City's website, tion. During the year, we stepped up the tempo considerably and, Kontaktcenter [Contact centre] with Äldre direkt [Age Direct], Sten Nordin Irene Svenonius at the present rate, we will achieve our target of 140,000 new e-services and an expanding range of e-adminstration. In addition, Mayor Chief Executive Officer

6 city of stockholm annual report 2013 city of stockholm annual report 2013 7 Important decisions and events during the year Organisation and governance

The City of Stockholm DECISIONS „„A number of development agreements, in- „„ Accessibility strategy for Stockholm 2030 cluding 1,000 student apartments in Albano, Municipal Stockholm’s The City Group „„The merger of Kulturhuset’s operation with 350 homes at Rinkebyterassen and 180 homes commission companies profile in the Stockholms Stadsteater AB in the City Development area of Nordvästra world continues „„IT programme Kungsholmen Co-owned companies „„Security and safety programme 2013–2016 The City’s operations The City's companies External providers to strengthen. with no significant Stockholm is „„School programme for the City of Stockholm's EVENTS influence Administration Report described as ”World-class schools” „„The City of Stockholm was again awarded Administration Report „„The City of Stockholm pre-school programme the highest possible credit rating from the SÖRAB (5%) one of Europe's – the pre-school of the future international credit rating Institute, Standard fastest-growing Stockholms Stadshus AB „„The future of Kista Science City & Poor’s, with short-term and long-term credit Rinkeby-Kista District Council Certain City matters are dealt with Parent cities, with both – Vision and strategy 2010–2020 ratings of AAA/Stable and A-1+ respectively. Spånga-Tensta District Council by legal entities other than the City. Hässelby-Vällingby District Council historical beauty „„Energy plan for Stockholm „„In a new report from Ericsson, Stockholm was A list of the areas of operation han- Bromma District Council dled in this way follows, along with a and a new „„Culture at eyelevel – for, with and by children ranked as the best in the world in using infor- Kungsholmens District Council AB Svenska Bostäder statement of the cost and percent- and young people. Programme for children’s mation and communications technology (ICT) Norrmalms District Council AB Familjebostäder age of the City's costs for that area generation of Östermalms District Council and young people's culture in Stockholm as a vital tool in the City’s growth. AB Stockholmshem of operation. In total, the City paid creative talents Södermalms District Council Bostadsförmedlingen i Stockholm AB SEK 16.1 billion to external providers. „„Järvalyftet 2007–2012 - debriefing „„The City of Stockholm was designated the Enskede-Årsta-Vantörs Skolfastigheter i Stockholm AB, SISAB and entrepre- „„The Traffic and Waste Collection Commit- Growth Municipality of the Year for 2013. District Council S:t Erik Markutveckling AB Political activities and common Skarpnäcks District Council neurs. tee’s reinvestment in streets programme, Stockholm’s innovative strength, attractive- Micasa Fastigheter i Stockholm AB administration, SEK 35.6 million, 0.5% Farsta District Council Stockholm Vatten AB (98%) Individual and family care, 2013–2018 ness to new enterprises, dedicated support for Älvsjö District Council Stockholms Hamn AB SEK 859.8 million, 22.1% „„Implementation agreement with the Swedish the business sector and clear sustainability Hägersten-Liljeholmen AB Stokab Infrastructure, urban environment, District Council Transport Administration for the Stockholm profile were all cited as reasons for the City Stockholms Stads Parkerings AB protection and security, Skärholmen District Council Stockholm Globe Arena Fastigheter AB SEK 1,324.8 million, 58.8% Bypass receiving the award. Labour Market Committee Stockholms Stadsteater AB Pre-school operation and after- „„Setting the direction of the development of „„The City of Stockholm has signed a joint Development Committee S:t Erik Försäkrings AB school centres, SEK 2 ,862.7 million, Real Estate Committee part of Söderstadion for the relocation of agreement with the Municipality of Nacka, Stockholm Business Region AB 39.6% Sports Committee S:t Erik Livförsäkring AB Compulsory school, Tekniska Nämndhuset to Söderstaden, as the City of Solna, the Municipality of Järfälla, Culture Committee Mässfastigheter i Stockholm AB (50,4%) SEK 2,221.1 million, 32% 150 well as housing. Stockholm County Council and the Govern- Churchyard Committee Upper secondary school, years of the City Environment and Health Committee Council of Stockholm „„The implementation of the rebuilding and ment Negotiator for four new stretches of SEK 1,615.3 million, 51.5% Service Committee Other schooling/education extension of Kapellskärs Harbour underground railway and 78,000 new homes Social Welfare Committee SEK 177.5 million, 68.3% „„Decision on Stockholm Vatten AB’s future in Stockholm County. City Planning Committee Care for the elderly, Traffic and Waste Collection waste purification facility in the West of „„The Tele2 Arena, with a capacity of 30,000 SEK 4,323.1 million, 62.2% Committee Limited companies Support and services for people with Stockholm spectators, was formally opened. The Tele2 Education Committee outside Stockholms disabilities, SEK1,906.3 million, 56.3% Arena also offers a totally new and unique food Election Committee Stadshus AB Leisure and culture/general leisure Senior Citizens' Committee and entertainment concept, Tolv Stockholm. activities, SEK 214.5 million, 13.4% Chief Guardian Committee Business, trade and industry, „„ The online social guidance service was City Council etc. AB Fortum Värme Holding, co-owned and housing, SEK 560 million, 49.3% launched. Audit Board with the City of Stockholm (49.9%) Other operations, special „„Stockholm.se was designated Sweden's best Stockholms Terminal AB (50%) initiatives, SEK 1.3 million, 3.2% local authority website. „„The Festival of Culture and the We are Stock- holm event, attracted over half a million visitors. „„A total of eight committees and City-owned Association of local authorities companies will move from central Stock- Organisation and governance holm to Tensta, Rågsved, Farsta, Skarpnäck, The above diagram illustrates the opera- tions which form part of the City of Stock- Skärholmen, Husby and Ulvsunda. Storstockholms Brandförsvar, SSBF holm's combined municipal activities as „„The City Council in Stockholm celebrated its at 31 December 2013. In this report, legal 150th anniversary. The Jubilee celebrations entities are classified as: • Group companies with a decisive or involved a website, festivities, a series of significant influence talks and a research project which produced a • Commission companies of the other co- owned company or external provider type PHOTO: JANY PLEVNIK JANY PHOTO: number of books.

8 city of stockholm annual report 2013 city of stockholm annual report 2013 9 ­

The world and the future he global economy is still suffering in international indices measuring the environ- the after effects of the financial crisis, ment and other aspects of sustainability. It has but there are initial signs of recovery. an international reputation as a green city with TWeak development in the Euro zone in high ambitions. Stockholm’s strength is that the particular is holding back the Swedish economy, City performs exceptionally well in all aspects of and GNP growth amounted to only 1.5 percent in sustainability.

Administration Report 2013. The labour market in the City of Stock- According to Vision 2030, living in Stock- Administration Report holm is gradually strengthening. In recent years, holm will provide a high quality of life and the half of the increase in the population of Sweden opportunity to grow. The rewarding quality of 4 took place in the County of Stockholm, and this life in Stockholm is confirmed by several inter- Stockholm trend seems set to continue. In December 2013, national indices. This includes a high placing for came fourth the County’s population was 2,163,042, and the Stockholm in Monocle’s Quality of Life Survey, out of 264 City’s, 897,700, an increase of 1.7 percent for the which lists the best cities in the world to live in. European County and 1.9 percent for the City, compared Vision 2030 also states that Stockholm must regions in the with 2012. From an international perspective, the have a world-class business climate, and this is Stockholm region is doing very well, and holds confirmed by several rankings. The City has a European top positions in several international rankings. broad business sector with a strong component Commission's Stockholm stands out as an innovative city, with of knowledge-intensive industries – 60 percent Regional a high level of welfare and an excellent quality of the people working in the Stockholm Region Competitive- of life. Stockholm County has a high Gross Re- are in knowledge-intensive services. Cushman ness Report. gional Product per capita in international terms, & Wakefield’s study, European Cities Monitor, with, for example, a higher GRP than either ranks the best European cities to do business in Copenhagen or Helsinki. and places Stockholm 13th. The study is based on a survey of 500 senior executives in leading Stockholm in the world European companies. The list is topped by Lon- – a world-class Stockholm don, Paris and Frankfurt. The City of Stockholm is part of a larger Europe- The City is the hub of a competitive and an and global context. Amid the global competi- innovative knowledge region. As regards per- tion the City must be at the forefront, no matter formance in information technology and in its how the comparison is drawn. The vision for innovation climate, Stockholm is ranked highly,

Stockholm is to be a world-class city. To know and is improving its position in a number of DER MEIJS VAN LIESELOTTE PHOTO: whether Stockholm is on its way to becoming indices. This is demonstrated by the fact that, in world-class, the City must be seen, interact with, 2013, Stockholm was placed fourth out of 264 be measured and compared with other cities European regions in the European Commis- 2013, ranks 100 cities in five different indices. able to keep pace. This is a picture often painted around the world. In 2013, Stockholm appeared sion's Regional Competitiveness Report. IBM’s Stockholm came seventh in the index which in the international press. An article in the New in a range of different international indices, rank- study, The World’s Most Competitive Cities specifically measures the growth of software, York Times states that demand exceeds supply in ings, statistics and international media. and achieved fifth place in the index covering central Stockholm. Stockholm’s profile in the world is becoming Stockholm's cutting-edge Life Science sector. An ever-increasing proportion of the global increasingly strong. Stockholm is described The picture given of Stockholm in the inter- population lives in cities, and this trend will as one of Europe's fastest-growing cities, with national media is generally positive, even though probably continue. This means that the impact of both historical beauty and a new generation of the riots in Husby for a brief period in the spring Stockholm and other cities on the global climate creative talents and entrepreneurs. of 2013 affected the media view. will increase. The effort to find smarter solutions Stockholm has a business sector strongly to improve urban sustainability benefits both the weighted towards knowledge-intensive sectors, The future residents of the City and for the world's popula- and is already a world-class city in its explicit- Stockholm’s population is growing rapidly. This tion. Successful exports of smart solutions will ly cutting-edge industries. The City is already creates both opportunities and challenges. The lead to more sustainable cities throughout the ranked high in terms of competitiveness in IT number of people moving into Stockholm is con- world while, at the same time, it strengthens in-

and Life Science. Stockholm is also well-placed AB SVARTPUNKT PHOTO: siderable, and housing construction has not been novation and competitiveness in Stockholm itself.

10 city of stockholm annual report 2013 city of stockholm annual report 2013 11 The City Executive Board’s supervisory duty he supervisory duty is defined by Swe- be noted that a number of companies have been den’s Local Government Act as manag- dormant during the year. ing and co-ordinating the administration As part of its supervisory duty, the City Tof the municipality’s affairs. The City Executive Board has examined the committees’ Executive Board has a duty of supervision operational plans, including risk and materiality over the City's wholly-owned and part-owned analyses for 2013. In cases where committees companies. This means that the City Executive and companies had set annual targets for indi- Board must determine annually whether the cators which were too low, they were urged to wholly-owned and part-owned companies have come up with higher administration targets with carried on their respective operations in confor- the aim of achieving the City Council's annual mity with the objectives adopted by the City and goals. The City Executive Board has also exam- within the framework of the legal competences ined and provided feedback to the committees in

Administration Report of the City. The City Executive Board considers connection with the first and second four-monthly Administration Report that the City's wholly-owned and part-owned reports. companies have carried on their respective operations in conformity with the law. It should

SOUND FINANCIAL MANAGEMENT PHOTO: SARA MC KEY PHOTO: Vision 2030 – a world-class Stockholm Vision 2030 for the City of Stockholm sets out a vision of the future of a world-class metropolis. CITY COUNCIL ORIENTATION GOALS The Vision was adopted by the City Council in 2007. Since then, circumstances have partly The City Council decided on the following three The orientation goals provide the framework changed. In particular, the growth in the City's orientation goals in the 2013 budget: for the City's management of its operations. population and its expansion have been signifi- • Stockholm is an attractive, safe, accessible and The degree to which the orientation goals are cantly faster than anticipated. This has led to the The City's vision flourishing city for residents, enterprise and achieved is vital to the achievement of sound launch of a project during 2013 to evaluate and visitors financial management for the City. Based on the revise Vision 2030 with the aim of identifying • Quality and freedom of choice is promoted and results of the indicators, an assessment of the any new or altered challenges facing the City, improved City Council’s operational goals has been carried The table shows the and how the City can respond to these. • The City's operations are cost-effective out, and the overall assessment is that the City overall assessment City Council orientation goals of the City Council’s fulfilled the requirements for sound financial orientation goals

Integrated management system – ILS guidanceSupplementary documents management in 2013. and targets for the Planning and monitoring are carried out in a operational areas. web-based tool which is used at all levels in the City Council goals for operational areas The City Council's goals Municipal Group's City, from the City Council to the individual Orientation goals/operational targets goal attainment unit. ILS is the name given to the City’s control Stockholm is an attractive, safe, accessible and flourishing city for residents, enterprise and visitors Met in full system, an integrated system for managing and Companies chooses to operate in Stockholm in preference to other cities in northern Europe Met in part following up operations and finances. Stockholm's residents are able to support themselves Met in full Governance is based on Vision 2030. In the City Council indicators and activities Stockholm's living enviroment is sustainable Met in full annual budget, the City Council establishes orientation goals and targets for the operational A large number of homes are constructed in Stockholm Met in full areas, indicators and activities. The indicators Accessibility in the region is high Met in full measure target attainment, and the City Coun- Stockholmers are satisfied with the City's cultural and sports opportunities Met in part The Administrations' indicators/activities cil sets an annual target for each indicator. The Stockholm is percieved as a secure, safe and clean city Met in full committees and boards set out the City Council’s Quality and freedom of choice is promoted and improved Met in full goals for the operational areas in concrete form Stockholmers experience a freedom of choice and diversity Met in full Children and pupils learn and develop knowledge and values Met in full through administration/company targets. The unit's assumptions, expected results, City governance working methods and resource usage Stockholmers experience the service and care they receive as excellent Met in full according to ILS Planning and follow-up The City of Stockholm is an attractive employer offering exciting and challenging work Met in part takes place in the City’s ILS The City's operations is cost-effective Met in full control system, an inte- The budget is balanced Met in full grated system for manag- ing and following up oper- Unit results, follow-up and development All operations financed by the city are efficient Met in full ations and finances.

12 city of stockholm annual report 2013 city of stockholm annual report 2013 13

enadstaden” – the Pedestrian-friendly City, the The qualifications awarded in year 9 showed an target of 140,000 new homes between 2010 and improvement compared to 2012. In recent years, 2030 and the Accessibility Strategy. results have fluctuated up and down, and the A survey of residents showed that Stock- differences have been greatest in schools with holm’s young people are very satisfied with the most challenging socio-economic conditions. the cultural and sports activities available. The The poorer results in 2012 involved in particular survey also showed, however, that further work schools with the most challenging socio-eco- would be useful on Stockholmers' overall expe- nomic conditions, and it is these categories of riences of culture and sport. The goal Stockhol- schools in which the improved results in 2013 mers are satisfied with the City's cultural and are concentrated. This has reduced the differenc- sports opportunities was, accordingly, met in es between schools. part. The merger of Kulturhuset and Stadsteatern Satisfaction with the City's care for the was implemented during the year, and resulted elderly remained high during 2013, and rose

PHOTO: LENNART JOHANSSON LENNART PHOTO: in Stockholm being presented with an ”all arts within a number of areas. Satisfaction with centre” in line with the concept developed by the sheltered accommodation remains high, and Stockholm's results are well up with those of the ATTAINMENT OF ORIENTATION GOALS architect, Peter Celsing. The merger has created opportunities for new thinking and an "all arts" rest of the country. The results of user surveys Stockholm is an attractive, safe, don School of Economics who, independently approach. relating to support and services for people with

Administration Report accessible and flourishing city for of each other, examined the City's model for The goal Stockholm is percieved as a secure, disabilities show that the City Council's goals are Administration Report residents, enterprise and visitors sustainable development in two comprehensive safe and clean city was met in full. A better being met in part. In individual and family care, The overall assessment is that the orientation international studies. The climate issue is a an urban environment is part of the building of a good results have been achieved in respect of a goal was achieved in full during the year. This important part of this, and has been a central fo- more secure environment in line with Vision reduced need to reopen cases within 12 months assessment is based on the fact that five of the cus for the City of Stockholm's work during the Järva 2030, and has been combined with other of the completion of an intervention. The goal seven underlying targets for the operational areas year. The goal Stockholm’s living environment is initiatives in collaborations between the City, Stockholmers experience the service and care were achieved in full. sustainable was met in full. the police and community representatives. The they receive as excellent was met in full. The expansion The goal that Companies chooses to oper- The City of Stockholm has a high long-term report also stated that the peace and quiet of City The goal The City of Stockholm is an attrac- of the under- ate in Stockholm in preference to other cities ambition for housing construction. The City has districts can rapidly turn into social unrest and tive employer offering exciting and challenging ground system is in northern Europe was met in part. In the effective advance planning, with almost 60,000 violence. During the outbreak of social unrest, work was met in part. Staff surveys show that one of the most Confederation of Swedish Enterprise's ranking homes at various stages of the process. The land the good relations between the City, the police the City’s staff are committed and motivated to important issues of the business climate in all the country's 290 is attractive to build on. In total, construction and community representatives were invaluable, improve the City's operations, and they appre- municipalities, the City of Stockholm climbed work began on just over 6,600 apartments in and much was learned across the board on how ciate that their work is meaningful. The trend for both the City from 132 on the list in 2006 to 41 in 2013. This 2013, including redevelopment and expansion. such events could be avoided in future. in sick leave among the committees reflects the and the region. is, however, a drop since the previous year. In The construction of 5 ,372 new houses began, trend in sick leave in the country in general, with the annual ICCA ranking of the world’s most an increase of 69 percent compared to 2012. Quality and freedom of choice is an increase in particular in short-term sick leave popular congress destinations, Stockholm is The target of 4, 500 new housing starts was, promoted and improved during 2013. Efforts to reduce sick leave remain now in 12th place among the 400 destinations accordingly, achieved with a good margin. 1,951 The orientation goal was met in full during the a priority, and committees and companies are us- included in the statistics. In 2012, Stockholm of the apartments commenced will be for tenant According to year. This assessment is based on the fact that ing various approaches at organisational, group was in 17th place occupiers. This means that target of 1,500 tenant the OECD and five of the five underlying targets for the opera- and individual level. The goal Stockholm's residents are able to homes under construction was also achieved. the London tional areas were achieved in full. support themselves was met in full. During 2013, The overall assessment is that the goal Large School of Stockholmers are enjoying greater freedom The City's operations are benefits dependency continued to fall. The per- number of homes is constructed in Stockholm Economics, of choice. During the year, the City continuously cost-effective centage of the population dependent on financial was met in full. informed the citizens on the choice systems and The orientation goal was met in full during Stockholm assistance fell to 2.0 percent, the proportion of The goal Accessibility in the region is high the available options. the year. This assessment is based on the fact adults dependent on long-term financial assis- was met in full during 2013. During the year, an is one of the The goal Children and pupils learn and that both operational targets were achieved. tance compared with all adult residents fell to agreement was reached by the City of Stock- world's leading develop knowledge and values was met in full. The City's budget must be in balance, and it 1.3 percent and the proportion of children who holm, the Swedish government, the County sustainable Parents of Stockholm are overwhelmingly is essential that the committees keep within live in families claiming financial assistance Council, the City of Solna, the Municipality of cities. satisfied with the pre-school facilities run by the budget limits so that the funds allocated dropped to 3.6 percent. This positive trend in Nacka and the Municipality of Järfälla on the the City and by independent players. Two areas by the City Council are used for their intend- benefits claims also led to a decline in the cost extension of the underground railway system where the improvement is especially marked ed purposes. In addition, resources must be of financial assistance. The City's summer job from Kungsträdgården to Nacka Centrum and involve the pre-school's educational mission; the freed for core activities in the City's operations initiative is a major factor in creating the condi- Gullmarsplan, from Odenplan to Arenastaden via level of parent satisfaction with the children's' through increased productivity/efficiency, and tions for young people to find work and provide Hagastaden and from Akalla to Barkarby station. linguistic development and with their approach partly through better management and clearer motivation for further studies. This approach was The expansion of the underground system is one to mathematical thinking. During the year, the procedures for follow-up and comparisons. The highly successful during 2013. Over 6,000 young of the most important issues for both the City District Councils implemented a large number Stockholms Stadshus AB Group is not covered people were offered summer jobs, and 5,696 and the region, given the underground of initiatives to recruit highly-qualified per- by the balance requirement but, overall, the were employed in the City, which is more than in system's vital contribution to the functioning of sonnel and, at the same time, retain the current Stockholms Stadshus AB Group must report a any previous year. the region and the improvement of accessibility. pre-school staff. As the City is growing, and the profit. Additional measures were implemented Stockholm is one of the world's leading Expansion of the underground is also a crucial supply of pre-school teachers is low, the issue to increase the focus on core activities. sustainable major cities. This was clearly stage in achieving the City's Vision 2030, and in remains a continuing challenge and intensive demonstrated both by the OECD and the Lon- the implementation of the Structural Plan ”Prom- efforts to rectify the situation are a high priority.

14 city of stockholm annual report 2013 city of stockholm annual report 2013 15 FINANCIAL GOALS The profit for the year for the Stockholms Sound financial management is based on setting not to exceed 34.0 percent. The City's equity/ Stadshus AB Group amounted to SEK 1,050.3 targets for indicators of the City's financial per- assets ratio was 34.0 percent (34.7 percent) and, million (2,503.3). The profit of the Stockholms formance. These targets are intended to encour- therefore, the target was achieved. Total assets Stadshus AB Group, as in recent years, consists age sound and sustainable finances in the long rose by SEK 9.6 billion as a result of extensive mainly of capital gains generated by the housing term. The City Council has adopted targets for investment activities, which increased the City's companies from the sale of properties. The five such indicators. Where appropriate, targets assets and also provided an increased receivable level of sales of this type was lower than in the are set for both short-term and long-term perfor- from the City's companies for borrowing for previous year. mance. All targets were achieved in 2013. investment. The Municipal Group's equity/assets ratio amounted to 54.2 percent including pension The City's net costs in obligations (54.9). This means that the target was relation to tax inocome achieved in both the long and the short terms. The parameter, the City's net costs in relation to tax inocome, measures how much of the ongoing Capital costs as a proportion net costs are financed through tax inocome. If of net operating costs the net costs exceed 100 percent of tax inocome, The City's investments led to annual operating the City may be forced to use its equity for day- and capital charges, which, in a number of cases, to-day operations. In the short term, the budget exceeded the estimated return from the invest-

Administration Report can be financed from finite resources, i.e. the ments. Such projects are justified for reasons Administration Report City's positive net financial interests/expense other than financial, and represent a charge to 92.2% along with dividends from the Municipal Group. the City's day-to-day finances. The volume of ... of tax The target for 2013 was that net costs must not investment must be suited to the City's financial inocome in- exceed tax inocome including financial surpluses resources, otherwise the scope for operations and and dividends. The operation's net costs for the other requirements will be limited. The City's cluding net accounting period were 92.2 percent of tax ino- long-term target is for the capital costs as a pro- financial items come including financial results and dividends. portion of the City's net operations costs, must and dividends, Net costs were 98.3 percent of tax inocome. not exceed 7.0 percent. The target for the annual represent the This means that the target was achieved in both period was achieved, since the share amounted net expenses the long and the short terms. Sound financial to 6.3 percent. The internal interest rate was set of operations management along with the favourable trend of on the basis of the City's average interest rate tax inocome contributed to the achievement of on borrowings. The City's low average interest for the annual the targets. rate meant that the internal interest rate for 2013 period. was set at 2.6 percent, and this assisted in the Equity/assets ratio achievement of the targets. This ratio shows the relationship between equity and assets. If the equity/assets ratio is Budget compliance before and after high, assets are largely financed through equity, technical adjustments and the level of loan financing is low. During Proper budget compliance is an essential condi- periods of intensive investment activity, it is tion for effective financial control and, conse- particularly important to monitor this parameter quently, sound financial management. Budget carefully. The target includes the City's pension compliance measures how well financial control

obligations. For both the City and the Municipal is being exercised in respect of conditions set out BOHLIN STEFAN PHOTO: Group, the target is that the equity/assets ratio in the budget. should not exceed 34.0 percent in the long term For the committees, the follow-up of the op- Board's technical adjustments, budget adjust- The goal is a maximum deviation in forecast and 30.0 percent in the short term. The target erating budget includes capital costs, the results ments and remittance of profits. The target for accuracy in the second four-monthly report for 2013 was that the equity/assets ratio was from the profit centres and the City Executive budget compliance is that it must be 100 percent, from actual outcome of +/-1%. The target was both before and after technical adjustments. The achieved, as the forecast accuracy was 0.4%. targets are achieved both before and after tech- nical adjustments, up by 99.0 percent and 99.0 Profit for the year for the Municipal Group percent respectively. After eliminating intra-Group balances, includ- ing dividends, the profit for the Municipal Group Goal regarding forecast accuracy of the after taxes and net financial items amounted to committees’ second four-monthly report SEK 2,502.0 million (4,828.2). The profit figure Forecast accuracy describes the ability to assess for the Municipal Group includes the results for deviations and to take action to keep to a set the City, the Stockholms Stadshus AB Group budget. Forecast accuracy is measured as the and the City’s other companies which are not deviation between the year’s forecasts and out- part of the Stockholms Stadshus AB Group. The come, including capital costs, results of the profit lower profit for the year in comparison with the centres and the City Executive Board’s technical preceding year is primarily due to a fall in the

PHOTO: ANNE LINTALA PHOTO: adjustments. profits of the Stockholms Stadshus AB Group.

16 city of stockholm annual report 2013 city of stockholm annual report 2013 17 APPROPRIATIONS WITHIN THE MUNICIPAL GROUP Other major items which affect results are the Reconciliation with the balanced-budget The profit for the year after net financial income/ by the City of Stockholm, contributed SEK 0.2 repayment of SEK 0.5 billion of premiums for requirement expense for the Stockholms Stadshus AB Group billion and capital gains provided SEK 1.1 contractual insurance for the City's employees A reconciliation with the balanced-budget re- amounted to SEK 1,340.7 million (3,006.4). In billion. Tax inocome were 0.4 billion higher than in respect of 2005 and 2006, combined with the quirement must be performed in accordance with the financial statements for the Stockholms Stad- the estimate. The results from the committees fact that no premiums were withdrawn in 2013. Chapter 8, § 4 of the Local Government Act. The shus AB Group, losses in certain subsidiaries provided a budget surplus of SEK 0.3 billion. The interest rate used in the calculation of pen- income statement provides the starting point for are covered by corresponding Group contribu- The additional dividend under the provisions sion liabilities has fallen, and this has resulted reconciliation. The aim of the balanced-budget tions totalling SEK 478.6 million (531.6). An of the Public Utility Municipal Limited Liability in an increased expense for pension liabilities of requirement is to show that a municipality is not additional dividend of SEK 670.0 million for Housing Companies Act must be used to imple- SEK 0.4 billion. living beyond its means. Capital gains comprise 2013 was paid to the City under the provisions ment investment projects aimed at that part of the The agreement for an extension of the un- part of the sale of assets, and, according to the of the Public Utility Municipal Limited Liability municipality's housing provision responsibility derground system in the Stockholm region, and principals of sound financial management, they Housing Companies Act. Due to the continued which promotes integration and social cohesion. which is partly financed by the City of Stock- should not be used for ongoing operating costs. strength of its finances, the City did not claim the By increasing equity, these funds will enable proj- holm in partnership with the Swedish govern- Capital gains should not, therefore, be includ- budget dividend for 2013 of SEK 900.0 million. ects to be implemented without loan financing. ment, the County Council and other municipal- ed in the surpluses in reconciliations with the Tax inocome were higher than estimated part- ities involved, has led to fixed-price obligations balanced-budget requirement. Exceptions to this Surplus for the year for the City ly because of the substantial population growth of SEK 2,950 million. Undertakings in respect rule may only be made if they are in conformity After utilising provisions from previous years resulting in an increase in cost equalisation Appropriations for the of hosting construction are additional to this. In with sound financial management, for example if Stockholms Stadshus and provisions for the period, the surplus for allowance. The capital gains arise from the sale AB Group are shown in connection with the Stockholm Agreement of the sale is part of a restructuring project. Capital

Administration Report the year (change in equity) amounted to SEK of properties outside the City's boundaries and the table. In summary, 2009, the City has committed to the part financ- losses are to be included in expenses when rec- Administration Report 3,444.4 million (3,037.3). The additional divi- from the redemption of land with site leasehold it may be noted that ing of railway connections in the Stockholm onciliation with the balanced-budget requirement the Group utilised dend from Stockholms Stadshus AB under the rights, particularly in Hagastaden. The sale of de- available results to Region, and has earmarked funds for this, for is carried out. provisions of the Public Utility Municipal Limit- velopment properties represents SEK 0.2 billion strengthen the equity which reason the provisions for this purpose for ed Liability Housing Companies Act represented of the capital gains. The positive results of the of subsidiaries as well the year are limited to SEK 480 million . Balanced-budget requirement as to free-up funds for SEK 1.9 billion of the surplus, the dividend from committees as against budget are due to sound future distribution to To bring together the operations in Kul- investigation Fortum Värme Holding AB, which is co-owned financial management. the City. turhuset, responsibility for Kulturhuset has been The City’s surplus adjusted in accordance with coordinated through Stockholms Stadsteater AB the requirements of the Local Government Act since the end of June. This involves a reduction shows that the City is fulfilling the requirement SEK thousand Group Group Share­ Share­ Dividend, the Dividend, City in the expense for the City in 2013 of SEK 42.9 for a balanced budget as it is running a surplus of contribution contribution holders' holders' Stockholms of Stockholm* million. The shareholding in Mässfastigheter SEK 2,286.4 million (2,317.7). paid received contribution contribution Stadshus AB* paid received Group i Stockholm AB has been sold to Stockholms Stadshus AB. The sale realised a capital gain of Parent SEK 17.1 million. Surplus for the year SEK 3,444.4 Stockholms Stadshus AB -273,531 -1,000,000 1,000,000 million Subsidiaries Surplus equalisation reserve Deduct income affecting -1,571.5 comparability AB Svenska Bostäder* -19,144 As of 2013, Sweden’s municipalities have been able to allocate a positive balance to surplus Additional sales revenue, 241.6 AB Familjebostäder* -1,656 development properties equalisation reserves. During the year, the City AB Stockholmshem* -1,896 Council approved rules for provisions to and Surplus for the year after 2,114.5 Bostadsförmedlingen i balanced-budget requirement Stockholm AB utilisation of a reserve of this type. The surplus adjustments SISAB 35,600 equalisation reserve creates a contingency fund Adjustment with costs in 171.9 to respond to economic fluctuations, so that accordance with extraordinary Capital gains Micasa Fastigheter i 2,000 circumstances as set out in Stockholm AB temporary down swings in tax inocome can be Chapter 8, § 5b of the Local comprise part S:t Erik Markutveckling AB -53,769 offset using funds from the surplus equalisation Government Act. of the sale of Stockholm Globe Arena 155,000 reserve, avoiding any impact on operations. A Balance requirement for the 2,286.4 assets, and, Fastigheter AB year surplus equalisation reserve also strengthens according to Stockholm Vatten AB -3,684 equity, which enables a greater degree of self-fi- the principals of Stockholms Hamn AB -48,000 nancing of future investments, thereby reducing Of the year’s SEK 1,056.8 million in capital AB Stokab -56,000 the future capital costs for operations. gains, SEK 241.6 million relates to development sound financial Stockholms Stads - 47,300 As a result of the 2013 Stockholm negotia- properties and is, under the rules, recognised in management, Parkerings AB tions, the surplus has been utilised to make provi- current assets. With the exclusion option, this they should not Stockholms Stadsteater AB 286,000 sions to cover future infrastructural contributions type of capital gain does not have to be used to be used Stockholm Business Region the City has undertaken to make for financing the reduce the surplus. AB for ongoing expansion of the underground system in the re- In connection with previous years’ finan- S:t Erik Försäkrings AB operating costs. gion. The SEK 1.9 billion from the share dividend cial statements, it has been decided to utilise S:t Erik Livförsäkring AB under the provisions of the Municipal Limited Li- the surplus for Vision Järva, Vision Söderort Other companies ability Housing Companies Act has already been and the Hässelbylyftet project, investments in Group adjustments claimed and cannot, under the rules, be used as a operational development with the support of Total -478,600 478,600 -1,026,380 1,000,000 surplus equalisation reserve. For that reason, no IT, and for the skills development fund. Under provision is being made to a surplus equalisation the provisions of the Local Government Act, * Group contribution was posted in the financial statements for 2013 in contrast to the dividend which is not recognised until the subsequent year. reserve in respect of 2013. Chapter 8, § 5b, costs may be excluded from

18 city of stockholm annual report 2013 city of stockholm annual report 2013 19 the balanced-budget requirement for excep- SEK 21.8 million. Budgeted development reve- The dividend amounted to SEK 2,103.0 provisions over and above the municipal pension tional reasons. In the City's opinion, the capital nue (relating to carrying amount) deviated from million, of which SEK 200.0 million represented agreement, KAP-KL, are included in pension gains should be used to benefit the residents of the budget by SEK 46.9 million, due partly to an a non-budgeted distribution from AB Fortum liabilities. the City through long-term investments. The overvaluation of carrying amounts as a propor- Värme Holding, which is co-owned with the Contingent liabilities for pension provisions expenses are non-recurring costs for long-term tion of sales revenue, and partly to the postpone- City of Stockholm, and SEK 1,900.0 million earned up to and including 1997 amount to SEK investments, rather than ongoing operating costs. ment of sales of development projects. Early an additional distribution from Stockholms 18,330.4 million, including employers’ contri- These expenses amount to SEK 171.9 million for in the year, the Development Committee gave Stadshus AB under the provisions of the Public bution, an increase of SEK 1,007.6 million com- the year and are excluded under extraordinary notice of a deficit, but were unable to reverse Utility Municipal Limited Liability Housing pared with 2012. The contingent liabilities have circumstances. this during the year, partly due to the fact that Companies Act. The budgeted dividend from also been affected by the reduced interest-rate, the Committee had carried out lump-sum write- Stockholms Stadshus AB of SEK 900.0 million which led to a significantly larger increase of Budget settlement downs. The Committees net results were SEK was not claimed, which is in accordance with the liabilities than occurred in 2012. A new pension In total, the District Councils and specialist com- 11.1 million under budget, largely explained by resolution of the City Council in connection with agreement, AKAP-KL, will come into force on 1 mittees report a surplus of SEK 304.7 million, lower revenue than budgeted and also due to the second four-monthly report. This made the January 2014 for employees born after 1985. The while the corresponding surplus for 2012 was write-downs of SEK 13.7 million. deviation on the budget SEK 1,203.0 million. new agreement is a defined-contribution plan. SEK 346.9 million. The Real Estate Committee reported a Tax inocome and equalisation showed a For other groups of personnel, the old agreement, The District Councils report a total surplus of positive budget deviation of 22.5 percent. surplus over the budget of SEK 420.7 million. KAP-KL, remains in force. The impact on costs SEK 69.3 million. The largest percentage devi- The deviation increased by SEK 33.2 million This consists primarily of the cost equalisation of the new agreement is expected to be moderate ations from the operating budget were reported above the non-deviation forecast for the second allowance, which increased as a result of the over the next few years, given that the group

Administration Report by Kungsholmen District Council (1.8 percent), four-monthly period. The change was primarily growth in Stockholm's population. The outcome who will be involved initially is limited. Administration Report Östermalm District Council (1.8 percent) and due to a small fall in revenue, as well as lower of the final settlement for previous years has also Rinkeby-Kista District Council (1.5 percent). expenses, for areas such as planned maintenance. been better than estimated. The Municipal Group's Kungsholmen District Council reported a Traffic and Waste Collection Committee: investing activities deficit of SEK 18.9 million, primarily due to the traffic and street operations recorded a positive Pensions The Municipal Group's gross investments cost of sheltered accommodation exceeding the deviation of 5.4 percent of the net budget. The Pension costs in the income statement amounted in 2013 amounted to SEK 12,379.2 million figure budgeted. Over and above care for the surplus was largely explained by gradual savings to SEK 2,431.0 million including financial items (14,371.5). The gross investments of the Stock- elderly, which was responsible for the great- to cover the increased costs of winter road (2,024.0). The pension costs for a growing num- holms Stadshus AB Group in 2013 total SEK er part of the deficit, support and services for maintenance in the first part of the year, with ber of pensioners and the pension fees, which 8,112.0 million (9,419.2). The gross people with disabilities also reported a deficit. the forecast for the second four-monthly period are calculated as a percentage of the payroll The gross investments consist primarily of investments new housing construction and acquisition of The District Council has had no control over cost being increased from SEK 167.0 million to SEK expense for active personnel, have increased. consist primarily increases, particularly within care for the elderly. 210.0 million. In the second four-monthly report, Costs relating to the change in pension liabili- land and properties. The term "new construction Forecasting has been unsatisfactory, and, for that the Committee forecast a negative budget devi- ties were higher than estimated as a result of a in progress" means investments in non-current of new housing reason, the District Council was unable to take ation of 2.5 percent. In the financial statements, reduction in the discount rate used in calculating assets of significant value which are under con- construction appropriate action in time to achieve a balanced the Committee reported a positive deviation of the present value of the liabilities. The reduction struction but not yet completed. and acquisition budget. The deviation recorded by Östermalm 5.4 percent. The City Executive Office stated that is due to the lower interest rate situation in the The City's investments in 2013 amounted of land and District Council is due to a surplus in care for the the committee, as late as the end of November, general economy, which controls the rules for to SEK 4,271.6 million (SEK 4,565.4 million), properties. elderly of SEK 29.7 million. The explanation for forecast a negative deviation of 1.7 percent for changing the discount rate. The cost resulting which is 6.4 percent lower than in the preceding this surplus is that the services provided within full year 2013. The Traffic and Waste Collection from the change in the rate are estimated at SEK year. Investment income for the year amounted care for the elderly were below the budgeted Committee's internal controls and forecasts for 414.7 million. The budget deviation for pensions to SEK 13.5 million (SEK 39.7 million). level. The deviation reported by Rinkeby-Kista traffic and street operations were not satisfactory totalled SEK -399.6 million. Local pension District Council consists mainly of lower staff during 2013. The City Executive Office consid- costs and lower project costs for Järva-Andan. ers that the Committee's forecasting and financial The Election Committee reported a positive control have been inadequate for several years, The Municipal Group budget deviation of 29.0 percent. The surplus and that, during 2014, the Committee must take Financial markets The City of Corporate Group in operating activities primarily reflects the fact action to improve this situation. Stockholm that the Committee has not carried out planned The Traffic and Waste Collection committee: External borrowing The companies conferences and purchases. waste collection activities reported a negative and investments­ SEK 18,441 million Financial invested The Development Committee recorded a budget deviation of 110.3 percent. The City net assets SEK 14,355 million deficit in operating activities of 1.0 percent of the Executive office stated that the deviation had SEK 12,648 External companies million net budget. The bulk of the deviations related to increased from SEK 3.0 million in the first The companies borrowed land administration, i.e. the management of land four-monthly report to SEK 9.6 million in the External lending SEK 43,754 million for tenanted properties and leaseholds, and are second four-monthly period report, which in- SEK 1,689 million partially offset by depreciation/amortisation and creased the deficit to SEK 12.6 million at the end internal interest rates being below the budget- of the annual period. ed levels. Compared with 2012, the revenue Total personnel costs for the City increased requirement from land administration increased by 2.8 percent in comparison with the preceding The Municipal Group’s internal dealings in 2013 in SEK million by SEK 200 million in the budget for 2013. In year. Despite this, the employer’s contribution Internal purchases which Internal sales which have Internal receivables, Internal liabilities, its report for the second four-monthly period, for the City's personnel reported a positive have been eliminated been eliminated excluding the City excluding the City Executive Office, which Executive Office, which the Committee forecast a deviation of SEK 15.8 deviation from the budget. The principal cause is have been eliminated have been eliminated million in respect of revenue. The outcome was that, as in 2012, no premiums were claimed for The Municipal Group 5,168.9 5,168.9 1,573.8 1,573.8 a deviation of SEK 37.6 million, i.e. an excess of occupational sickness insurance.

20 city of stockholm annual report 2013 city of stockholm annual report 2013 21 Number of employees (salaried) by operational area

Operational area Women Men 2013 2012 Year on year Total Total change Political operations and joint administration 993 438 1,431 1,395 36 Individual and family care 2,528 759 3,287 3,254 33 Infrastructure, urban environment, safety/security 561 454 1,015 951 64 Pre-school operation and after-school centres 9,535 1,403 10,938 10,849 89 Education 8,122 3,235 11,357 11,437 -80 Care for the elderly 3,786 776 4,562 4,770 -208 Support and services for people with disabilities 1,189 454 1,643 1,716 -73 Leisure and culture/general leisure activities 941 736 1,677 1,793 -116 Business, trade and industry, and housing 165 158 323 308 15 Other operations 23 24 47 57 -10 Stockholm Stadshus AB Group 1,077 1,468 2,545 2,397 148 Total 28,920 9,905 38,825 38,927 -102 Full-time employees for the year 27,703 9,522 37,225 37,245 -20

Administration Report In addition to these members of staff, hourly-paid staff have provided cover equivalent of 2,479 annual full-time jobs. Compared with 2012, there has been a drop of 5 percent Administration Report in the hours worked by hourly-paid staff. An organisational change was implemented during the year, under which, as of 1 July 2013, the Kulturhuset PHOTO: LENNART JOHANSSON LENNART PHOTO: arts centre became part of the operations of the Stadsteatern city theatre. Staff in figures In December, the City of Stockholm employed a total of 38,825 staff. Of these, STAFF 36, 280 worked for the City committees, and 2, 545 for companies owned by the The City uses two methods to measure sick leave. compares sick leave with contracted working City. Just under three in four employees Sick leave is measured both in accordance with the hours. The statutory reports compare sick leave were women. The above table shows the statutory requirements, and in accordance with the with actual hours worked, which means that number of employees by operational area. City’s own definition of the Sick leave indicator. that unpaid absence, such as parental leave or The qualities of the measuring methods differ. Sick leave of absence. The fact that unpaid absence is leave measured in accordance with statutory re- excluded means that the regular working hours quirements provides a good overview of the level are slightly less than the working hours used in of sick leave, which is comparable with that of oth- the City’s own measuring method. Consequent- er municipalities and county councils. Sick leave ly, the statutory reports will show an sick leave measured using the City’s own methods provides a level slightly above that of the City’s sick leave better picture of trends and, consequently, provides indicator. a better basis for follow-ups and analysis. Total sick leave measured in accordance with Unless otherwise stated, the information on statutory requirements increased by 0.2 per- sick leave in the City’s reports has been pro- centage points, from 6.0 percent to 6.2 percent, duced using the City’s own measuring method. during the period 2012 to 2013. Out of the total The statutory reporting of sick leave is based on sick leave, 45.5 percent lasted 60 days or more. somewhat different assumptions than the City’s The corresponding figure for 2012 was 44.8 per- own measuring method. The City’s method cent. This is an increase of 0.7 percentage points.

Companies owned by the City Sick leave in accordance with the City Council’s indicators 2013 show a slightly lower level of sick leave than the City’s committees. Sick leave as a percentage of contracted working hours Total Women Men Since the total sick leave figure of Short-term absence, day 1–14 2.0 2.1 1.6 5.4 percent includes companies, this shows a slight rise compared Long-term absence, day 15– 3.6 4.0 2.1 PHOTO: FREDRIK PERSSON PHOTO: with 2012, when total sick leave DER MEIJS VAN LISELOTTE PHOTO: Total 5.5 6.1 3.7 was 5.3 percent.

Sick leave in accordance with statutory requirements 1 January 2013 – 31 Age groups December 2013

Total Women Men –29 30–49 50–

Sick leave as a percentage of regular working hours 6.2 6.9 4.3 4.9 6.0 6.8 Percentage of total sick leave lasting 45.5 60 days +

22 city of stockholm annual report 2013 city of stockholm annual report 2013 23 24 How the City is governed city of stockholm Equal Opportunities Urban EnvironmentUrban Finance Committee 2013, based on areas of responsibility. 1January of as organisation political the of adescription is following The governance Group’s Municipal The District Councils District Advisory Board Advisory annual and Personnel Committee report Election Committee Election 2013 City Executive Executive City Council of Council Divisions Council Mayors Board City City Audit Office Audit City stads aktiebolag Stadshus AB Stadshus committees Stockholms Stockholms Stockholms Specialist Specialist

PHOTO: LENNART JOHANSSON T How governed is theCity seats won by the Social Democrats, the Green Party and the Left and Party. the Party Green won by Democrats, theseats Social over gave Council, 52 which them thesecured amajority inthe 49 City seats 2010, the Moderate Party, Democrats Party, Liberal Christian and Centre Party inSeptember At recent election the most Council elections. County and tary Parliamen time as the same at held elections ingeneral are elected members 101 inStockholm. Its body decision-making the Council suprime is City The The CityExecutiveCouncilhas a Finance and oppositionpartiesontheCity Council. has 13members,whorepresentboth themajority long-term development. The CityExecutiveBoard sponsible fortheCity’s financialmanagementand and companies. The ExecutiveBoardisalsore- and supervisingtheoperationofothercommittees ordinating theadministrationofCity’s affairs, General responsibilitiesincludemanagingandco- that decisionsareimplementedandfollowedup. Board alsohasoverallresponsibilityforensuring cisions takenbytheCityCouncil. The Executive The CityExecutiveBoardcommentsonallde- Board Executive City operations. City Audit Office,whoscrutiniseallmunicipal lic. The CityCouncilhasitsownauditors,the third Monday. The meetingsareopentothepub by othersontheirbehalf. Board, theCitycommitteesandcompanies,or decisions areimplementedbytheCityExecutive committees andlimitedcompanies. The political as wellobjectivesandvisionsfortheCity’s and fees,budgetsperformancerequirements, boards. The CityCouncilsetstaxrates, tariffs As arule,theCityCouncilconvenesevery drafted bytheCity'scommitteesand issues ruledonbytheCityCouncilare lines fortheCity’s operations. The he CityCouncilsetsgoalsandguide - - Assistant ChiefExecutiveOfficers. Officer, assistedinmanagerialfunctionsbytwo ecutive OfficeisheadedbytheChiefExecutive archiving copiesofpublicdocuments. The Ex- Board, andisresponsibleforcollecting for theCityCouncilandExecutive implemented. Italsoperformssecretarialduties tions, andforensuringthatpoliticaldecisionsare up anddevelopingtheCity’s financesandopera City. Itisresponsibleforcontrolling,following a central,strategicroleinthegovernanceof it initsremit. The CityExecutiveOfficeplays tive unit,theCityExecutiveOffice,tosupport been appointed. with disabilitiesandforseniorcitizenshavealso Advisory Board. Advisory boardsforpeople nities Committee,andanUrbanEnvironment Committee, apersonnelandEqualOpportu Total (KD) Democrats Christian (C) Party Centre (V) Party Left (FP)Liberal Party (MP) Party Green Social democrats (S) (M) Party Moderate 2010 September in election the following Council City the on Seats The CityExecutiveBoardhasanadministra - - - city - of 101 38 25 16 10

1 3 8 stockholm women, and 50 men. 50 and women, were councillors 101 51the of 2013, December 31 On annual report 2013 25 How the City is governed DIVISIONS, MAYOR AND VICE MAYORS Social Affairs Division Culture and Real Estate Division The political organisation comprises one govern- City Planning and Sports Division The Social Welfare Committee, District Councils The Culture Committee, the Real Estate Com- ing Mayor and seven governing Vice Mayors, as The City Planning Committee, Sports Committee – individual and family care, financial assistance, mittee, District Councils – culture and associ- well as an Assistant Vice Mayor. They are full- and Churchyard Committee. The City Planning Chief Guardian Committee, Service Committee ations, Stockholms Stadsteater AB, Stockholm Left photo, time elected representatives and are elected by and Sport Division is responsible for directing Opposition Vice Mayors and the City Executive Board’s advisory councils Globe Arena Fastigheter AB and the Council for the City Council. The Mayor and Vice Mayors the committees and boards that report to the Vice Tomas Rudin, for people with special needs and for senior Protection of Ecological and Aesthetic Matters. are each responsible for a division. A division Mayor. (Social Democrats) citizens. The Social Affairs Division is responsi- The Culture and Real Estate Division is respon- Roger Mogert serves as a staff function for the Mayor or Vice Vice Mayor for City Planning and Sports: (Social Democrats) ble for directing the committees and boards that sible for directing the committees and boards Mayor, and drafts matters for the City Executive Regina Kevius (Moderate Party) Karin Wannegård report to the Vice Mayor. that report to the Vice Mayor. Board and the City Council. There are also four (Social Democrats) Vice Mayor for Social Affairs: Anna König Vice Mayor for Culture and Real Estate: Daniel Helldén Vice Mayors representing the opposition parties. Schools and Education Division (Green Party) Jerlmyr (Moderate Party), Assistant Vice Mayor Madeleine Sjöstedt (Liberal Party) The Mayor and Vice Mayors jointly form the The Education Committee, District Councils – Group Leader for Social Affairs: Ewa Samuelsson (Christian Council of Mayors. The joint work is lead by the pre-school, Skolfastigheter i Stockholm AB Ann-Margarethe Livh Democrats) is responsible for accessibility (Left Party) Mayor of Stockholm, Sten Nordin (Moderate (SISAB). The Schools and Education Division issues and disability issues Party), who chairs both the Council of Mayors is responsible for directing the committees and Right photo, and the City Executive Board. boards that report to the Vice Mayor. Majority Mayor and Vice Mayors: DAY-TO-DAY OPERATIONS Vice Mayor for Schools and Education: Anna König Jerlmyr Mayor’s Office Lotta Edholm (Liberal Party) (Moderate Party), Day-to-day operations are carried out by the Specialist Committees The City Executive Board, the Finance Com- Vice Mayor for Social Affairs City’s committees and companies. These are led Each of the City’s specialist committees is respon- Joakim Larsson mittee, the Personnel and Equal Opportuni- Elderly and Urban Development Division (Moderate Party), by politically appointed committees and boards, sible for its own operations throughout the City, ties Committee, District Councils – overall The Senior Citizens Committee, District Coun- Vice Mayor for Elderly and the proportionate political distribution of which and each committee has an administration with finances, the Development Committee, the cils – care for the elderly, Micasa Fastigheter Urban Development reflects the distribution of seats on the City officials who carry out the day-to-day work. The Lotta Edholm (Liberal Party), Election Committee, the Stockholm Business i Stockholm AB, AB Svenska Bostäder, AB Vice Mayor for Schools and Council. The members of these committees and members of the committees are politicians who Alliance, Stockholms Stadshus AB, Stockholms Familjebostäder, AB Stockholmshem, Bostads- Education boards are also appointed by the City Council. have ultimate responsibility for the operation. Hamn AB, Mässfastigheter i Stockholm AB and förmedlingen i Stockholm AB, Vision Järva and Regina Kevius Information about meetings is published in local (Moderate Party), other companies which are not assigned to one of Vision Söderort. The Elderly and Urban Devel- Vice Mayor for City Planning newspapers, and minutes and documents relating The specialist committees are: the Vice Mayors. The Mayor’s Office manages opment Division is responsible for directing the and Sports to the meetings are available from www.insyn. Labour Market Committee Sten Nordin (Moderate Party), and plans the political work. committees and boards that report to the Vice stockholm.se. Development Committee Left photo, Mayor of Stockholm, City Executives: How theHow City is governed Mayor of Stockholm: Mayor. Chairman Some City of Stockholm operations are Real Estate Committee theHow City is governed Staffan Ingvarsson, of the City Executive Board Sten Nordin (Moderate Party) Vice Mayor for the Elerly and Urban Develop- carried out via companies. Most are coordinated Sports Committee Vice CEO Madeleine Sjöstedt ment: through Stockholms Stadshus AB, which acts Culture Committee Irene Svenonius, (Liberal Party), CEO Traffic and Labour Market Division Joakim Larsson (Moderate Party) Vice Mayor for Culture and as the Group Board. The City is also part of a Churchyard Committee Gunnar Björkman, Real Estate The Traffic and Waste Collection Committee, statutory joint authority with 9 municipalities in Environmental and Health Committee Vice CEO Ulla Hamilton the Labour Market Committee, refugee issues, Urban Environment Division the Stockholm region through the Greater Service Committee (Moderate Party), Right photo: Stockholms Business Region AB, Stockholms The Environment and Health Committee, Stock- Vice Mayor for Traffic and Stockholm Fire Brigade. A number of operating Social Welfare Committee Second Vice President Labour Market Stads Parkerings AB and AB Fortum Värme holm Vatten AB and the Urban Environment Ad- foundations also cooperate with the City and City Planning Committee Ulf Fridebäck Per Ankersjö (Centre Party), Holding co-owned with the City of Stockholm. visory Board. The Urban Environment Division carry out operations for the benefit of the City Traffic and Waste Collection Committee (Liberal Party), Vice Mayor for Urban President Margareta The Traffic and Labour Market Division is is responsible for directing the committees and Environment and its residents. Education Committee Björk (Moderate Party), Ewa Samuelsson responsible for directing the committees and boards that report to the Vice Mayor. Election Committee First Vice President (Christian Democrat), boards which report to the Vice Mayor. Vice Mayor for Urban Environment: Senior Citizens Committee Eva-Louise Erlandsson Assistant Vice Mayor Slorach Vice Mayor for Traffic and Labour Market: Per Ankersjö (Centre Party) Not in the photo: Chief Guardian Committee (Social Democrats). Ulla Hamilton (Moderate Party) Marie Ljungberg Schött (Moderate Party), Acting Vice Mayor for Social Affairs until 31 March 2013 LISELOTTE VAN DER MEIJS VAN LISELOTTE FLATO, PAWEL PHOTO: FLATO PAWEL PHOTO:

26 city of stockholm annual report 2013 city of stockholm annual report 2013 27 The City’s quality improvement efforts – quality for Stockholmers RINKEBY KISTA Throughout their lives, citizens in Stockholm have the right to expect high quality, first-class, legally certain and cost effective operations SPÅNGA and excellent service. The quality-related work carried out by the City is TENSTA aimed at developing and improving the service in all operations and at offering freedom of choice and diversity, in line with the overall objective HÄSSELBY of increasing benefits for Stockholmers. All development work focuses VÄLLINGBY on ensuring that users/residents are satisfied.

Quality development programme only a competition but is also a development The City’s quality development programme sets instrument. It focuses on a systematic approach NORR- out the main points of the development work. to quality and on the questions arising from the BROMMA MALM ÖSTERMALM The views of Stockholmers are appreciated quality development programme. KUNG- and taken into account, and form an important The City’s examiners assess the competing SHOLMEN basis for quality development. Management at units and provide them with feedback. They play all levels must exercise clear and accountable an important part in the award process, since it is leadership, and prioritise a dramatic approach their commitment and knowledge that make the SÖDERMALM to quality which puts results for local people at Quality Award possible. As part of their work, HÄGERSTEN its core. All members of staff are responsible examiners acquire highly-developed skills in op- LILJEHOLMEN for quality and quality development within their erational analysis and assessment. The work also

How theHow City is governed area of responsibility. All committees and boards gives them a broad knowledge and understand- Quality renewal and systematically set and use good examples to ing of the City’s various operations. Every year, SKÄRHOLMEN improve their operations. the City Executive Office trains new examiners ÄLVSJÖ in the evaluation methods used. This year, 94 ENSKEDE The City’s Quality Award examiners received training. As well as carrying ÅRSTA The aim of the Quality Award is to stimulate out their assignment as examiners with respect to VANTÖR and encourage all operations financed by the the Quality Award, they will also act as effective The District Councils’ areas of responsibility City to improve their quality. The award is also ambassadors for development work within their include the following: FARSTA an opportunity for the City to highlight and own operations. • Municipal pre-school SKARPNÄCK • Care of the elderly share best practice. The Quality Award is not • Support and service for people with disabilities • Individual and family care • Financial assistance and labour market measures

District Councils Resource allocation models Stockholm’s 14 District Councils are respon- In the budget, funds are allocated to the District sible for a large part of the municipal services Councils using a system adopted by the City within their geographical areas. While the City Council. The resource allocation system is based Council allocates funds and issues overall goals on the operational responsibility of the District and guidelines, each individual District Council Councils and on demographics. The District determines how funds should be allocated to Councils are allocated resources on the basis of meet the needs of its own catchment area. The the estimated need for municipal services, rather funds allocated to the District Councils amount than the actual costs involved. This gives District to approximately half of the City’s budget. Activ- Councils the freedom to organise their own ities are financed mainly through local taxation activities, provided that they comply with the and government grants, and, to a lesser extent, guidelines adopted by the City Council.

through fees. EK STEFAN PHOTO:

28 city of stockholm annual report 2013 city of stockholm annual report 2013 29 Hammarby Sjöstad’s pre-schools Glasade Gången SALUT – a second chance The city surveying section of the City Surveyor’s Office

THE 2013 WINNERS AND THE EXAMINERS’ COMMENTS

In 2013, winners were selected in the following COMMENDATION IN THE EDUCATION categories: pre-school, other nursing and care CATEGORY: and other operations, where two winners were SALUT – a second chance – providing education selected. In the education category, a special The school’s focus on its users – the students – is commendation was awarded for clear focus on impressive. The members of staff work closely students and regard for individuals. with students and with each other. The purpose of The staff of the pre-school department of The Östermalm model – Field & Prevention this is to create a sense of security and community the Södermalm District Council Unit, Östermalm District Council FREDRIK PERSSON PHOTO: Winners and, through this, improve the motivation to learn. THE PRE-SCHOOL CATEGORY: The basis is constant discussions between Hammarby Sjöstad’s pre-schools students and teachers. This operation receives – Södermalm District Council a commendation for its clear focus on students. THE RENEWABILITY AWARD IS AN AWARD-WINNING RENEWAL The unit uses the quality award competition as The emphasis is on individual interaction and part of its systematic quality work. Participation participation. This provides students with a day at The Renewal Award is the ideal complement successful methods and approaches adopted by in the competition has given them an opportunity school during which they improve their knowl- to the Quality Award. It recognises creativity the City’s operations. The exhibition was also to look closely at their work, with the aim of im- edge and increase their trust in the education renewal and innovation. The aim is to recognise a great opportunity for municipal and private

Quality renewal and proving the systematic approach and, ultimately system. something that improves quality, increases operations to get to know each other, as well as Quality renewal and the outcome as well. efficiency, contributes to sustainable devel- a chance to learn from other areas of operation. The unit has built an organisation where all THE OTHER OPERATIONS CATEGORY: opment or makes the task easier. In 2013, 13 In addition, it provided a forum for finding new staff take responsibility for the whole opera- The staff of the Pre-school Department nominations were received. areas of operations and partners who can further tion. Learning and development are based on an – Södermalm District Council increase the achievement of targets in the City’s analysis of results and areas identified as in need The unit demonstrates a constant and consistent THE 2013 RENEWAL AWARD WAS own operations. of improvement. Users, including young users systematic approach to its development work. Its PRESENTED TO: such as the pre-school children, are systematically approach is based on customer needs, continuous The Östermalm model – Field & Prevention OpenLab – aiming to solve major involved in the operation. follow-up and analysis of results. The views and unit, Östermalm District Council. social issues complaints of customers, as well as any problems The unit has succeeded in earning the confidence In partnership with Stockholm County Coun- THE OTHER NURSING AND CARE CATEGORY which arise, are considered and incorporated into of both young people and traders in the District cil and the Stockholm County Administrative Glasade Gången – Hägersten Liljeholmen the improvement work. The staff is committed to Council’s geographical area. As a result, traders Board, as well as the KTH Royal Institute of District Council development work and is thoroughly familiar with now have a better knowledge and understanding Technology, the Karolinska Institute, Stockholm An operation completely focused on targets and systematic quality work. Management is well of current rules and regulations. The work of the University and Södertörn University College, the results, in which its values permeate everything thought-through and clear, and this is confirmed unit prevents young people under the age of 18 City of Stockholm has initiated and participat- it does. The operation demonstrates an advanced by the staff. Its values are alive, and are clearly from accessing tobacco and alcohol. ed in the work of OpenLab aimed at resolving approach to quality work due to its focus on the visible internally and externally. complex social issues in the Stockholm region. right areas and its courage to try new ideas. The best practice fair During 2013, OpenLab has delivered its first two The reason why things are done is always THE OTHER OPERATIONS CATEGORY: The City’s efforts to make constant improve- pilot courses, organised workshops and seminars considered, and the organisation always remem- The city surveying section of the City Surveyor’s ments is continuing. The size of the organisation in partnership with interested parties including bers who it is there to serve. A flexible approach Office and the breadth of the City’s operations offers the Senior Citizens Committee, the Environment allows it to use its resources well. The leadership This operation demonstrates a clear link between unique opportunities for a mutual exchange of and Health Committee, the Traffic and Waste is based on extensive delegation of responsibili- the operational targets and the staff’s personal tar- experiences. In September 2013, the City organ- Disposal Committee, the City Planning Com- ties within an established framework. In this oper- gets. The manager encourages the staff to become ised, for the first time ever, a best practice fair mittee and the Education Committee. OpenLab’s ation, all tasks for which staff are responsible are involved in efforts to implement changes and in aimed at making the most of these opportunities. competition platform, OpenLab Competi- regarded as equally important, and this generates development projects involving other sections. All committees and several companies took tions, launched its first competition to identify a sense of pride and team spirit. This allows people to learn from each other, and part and highlighted around 200 good examples challenges in care for the elderly. Some of the builds genuine team spirit. The operation works of operational development in exhibitions and proposals submitted will be examined further ceaselessly to develop and improve the efficiency seminars. and implemented in test settings in close collab- of its core processes. They assess themselves and The purpose of the exhibition was to facilitate oration with the City’s operations. OpenLab has aim to make continuous improvements with a sharing information about the efforts that have also been actively involved in work relating to clear customer focus. gone into creating new development models, the EU Horizon 2020.

30 city of stockholm annual report 2013 city of stockholm annual report 2013 31 The City on the international stage The global trend is for continued urbanisation, and the cities of the world are becoming increasingly prominent in the international debate. Stock- holm is in favour of globalisation and regards the expansion of the City as a positive step. The main challenge for Stockholm is to ensure that it will continue to attract the investment and talent necessary to compete with other cities. To succeed in this, Stockholm needs to be active inter- nationally; to learn from others, be proactive and visible, take action, be compared with others and collaborate on the international arena.

Collaboration within international islation. In April, for the purpose of establishing organisations and networks a framework for the City’s work on EU policies, In 2013, the City Executive Board was a member the City Council adopted a Position Paper on the of seven international, city-focused organisa- EU, Stockholm and Stockholmers which sets out tions and networks: Baltic Metropoles Network the City’s policy on the political aspects of the (BaltMet), C40 – Climate Leadership Group, EU which impact on Stockholm and Stockholm- Cities for Cyclists, EUROCITIES, European ers. During the year, eleven committees and nine Cities Against Drugs (ECAD), Mayors for Peace, companies have also developed operation-specif-

International and Union of Capitals of the European Union ic position papers on the EU. International (UCEU). This was the first year in which Stock- Many decisions taken at EU level affect the holm joined Cities for Cyclists, and this is a step City and its operations. For example, the EU has in the City’s strategic aim to promote cycling. an impact on around 60 percent of matters dealt The Mayor represents the City as a member of with by the City Council. Around 70 percent the Board of EUROCITIES. of EU legislation is implemented at local or The reports submitted by the City’s com- regional level. mittees and companies show that the City is a member of 68 international organisations and EU funding networks. This is a slight drop on the previous A world-class Stockholm requires us to develop The number of year. The drop should not, however, be interpret- new working methods and ways of develop- 75 ed as a fall in the City’s international commit- ing our operations and continuing to provide international ment, but rather as the result of the continuous excellent service to a growing population. The organisations review of the targets of the City’s committees framework of EU projects gives us opportu- of which and companies. The international attractiveness nities to learn from others as well as to show Stockholm is of the City remained strong in 2013. There is other cities how we in the City of Stockholm a member. great demand for the City’s expertise in areas are developing public services. Opportunities such as the environment, smart cities and innova- for EU-funded development work span virtually tion, and the City’s politicians and civil servants all the City’s operational areas. Around half of have, consequently, continued to be highly all specialist committees, District Councils and sought-after in the international arena. companies in the City of Stockholm took part in an EU-funded project in 2013. EU funds often EU Policy 2013 enable development initiatives to be implement- The City Council has decided that Stockholm ed that would not otherwise have been possible will be an active player in the EU. The City will within the standard budget. Participating in EU attempt to influence the drafting of EU laws projects is also a way of developing the skills of which impact on the City, and aim to ensure that the City’s personnel, finding new perspectives the interests of Stockholmers are taken into con- and reviewing work methods. sideration by the EU. The City Executive Board In 2013, the City funded a large number of is responsible for the City’s position on city-fo- development initiatives run as EU projects, and cused EU issues, and in 2013, it expressed its the City has entered SEK 62.5 million in EU

PHOTO: SVARTPUNKT AB SVARTPUNKT PHOTO: opinion on a number of of proposals for EU leg- funds in its books.

city of stockholm annual report 2013 33 The presentation of the 2013 Growth Municipality The Permit Guide is an e-guide which helps The Larsboda Enterprise of the Year Award. entrepreneurs find out what permits are required Zone in Farsta. From the left: Maria Gårdlund, Irene Svenonius, to start a business and how to submit their appli- Annie Lööf, Sten Nordin, Jan Oldebring and Katrien Vanhaverbeke cations. It is expected to deal with 5,000 of the 15,000 permit application cases processed by the City every year.

International attractiveness The City of Stockholm will be a popular meeting place which attracts investment. In achieving this, the efforts to improve the City’s repu- tation and present the advantages of the City internationally are vital. In 2103, Stockholm moved from 17th to 12th place in the annual ICCA ranking of the world’s 400 most popular congress destinations. Another result of this intensive work is that the number of business-re- lated overnight stays during the first 10 months of the year numbered 9.4 million, of which 6.4 million were spent in the City of Stockholm. This is an increase of 2 percent for the county, and 1 percent for the City, compared with the same period in 2012. Work on the World-class Enterprise Zones project, which aims to develop a vision for business locations, has intensified during the

PHOTO: ALEXANDER FARNSWORTH PHOTO: year, and will be incorporated into an advanced structural plan. An investigation into how more jobs can be created in the southern suburbs has also been launched during the year. The work A business-friendly city includes meetings with the business sector aimed at involving business representatives in the de- The prerequisite for meeting future challenges lies in Stockholm’s ability velopment of the City’s business locations. to be an attractive city for business start-ups and development. The ob- jective is to market Stockholm and the region as an attractive base for businesses and destination for visitors, with the banner ”Stockholm – The Capital of Scandinavia”. In 2013, Stockholm won the award for Growth

Enterprise Municipality of the Year. Enterprise

he operational target was partially as well as for the work carried out by the City to achieved during the year. In the Confed- support people in the labour process. Work on the World-class Enterprise eration of Swedish Enterprise’s business Zones project has intensified during climate rankings, Stockholm has Business satisfaction with the City T the year, and will be incorporated climbed from 132nd place in 2006 to 41st place as an authority in 2013. The ”Number of new business start- Municipal services are an important factor in into an advanced structural plan. ups” and ”Percentage of businesses acquired in how the business climate is perceived. The

competition” indicators have been met in full. Stockholm Business Alliance’s annual service FLATO PAWEL PHOTO: survey shows that Stockholm businesses are Stockholm won the 2013 Growth happier with the City as an authority than are In 2013, Indicator Goal Out- Goal attainment Comment Municipality of the Year Award businesses in the average municipality. Busi- 12 come Stockholm The judges’ verdict explained that the City of nesses expressed the highest level of satisfaction Business sector satisfaction contacts with the City as 70% 68% Met in part The result is an increase of 4 percent- Stockholm is the engine powering the Stockholm with the City’s performance as an authority with moved from 17th an authority age points on the outcome for 2012. region and Northern Europe’s leading growth re- respect to fire inspections (previous measure- to 12th place in Percentage of operations acquired in competition 36% 42% Met in full gion, and that the City stands out is its innovative ments in brackets), Satisfied Customer Index, the rankings of Companies’ satisfaction with efficiency 67% 66% Met in part The result is an increase of 4 percent- abilities, its knowledge-intensive and diversified 79 percent (72), environmental inspections at 72 the world’s age points on the outcome for 2012. business sector and a level of new business start- percent (70) and land grants at 67 percent (67). most popular Companies’ satisfaction with information provided by 70% 69% Met in part The result is an increase of 2 percent- ups far ahead of the rest of the country. A strong, One example of an activity aimed at improv- the City age points on the outcome for 2012. dynamic business sector forms an important ing services is the Permit Guide e-service, which congress Number of new business start-ups 20,000 20,924 Met in full basis for the City’s economic growth in general, was launched during the year and is open 24/7. destinations.

34 city of stockholm annual report 2013 city of stockholm annual report 2013 35 A city in work Stockholm’s overall social and welfare policy must be clearly focused on work. All those who can work and support themselves should be supported by a range of measures to become free from benefit depen- dency. The residents of Stockholm should be or become self-supporting.

he goal that the residents of Stockholm Active measures to increase employment

Financial assistance Financial are or become self-supporting was The challenge facing the labour market remains, assistance Financial attained in full during the year. This with continued high levels of unemployment Tassessment is based on the the fact that among some groups and, in parallel with this, the initiatives to reduce dependence on financial a shortage of labour in certain sectors. Specific assistance have had a positive impact on benefit City operations, such as adult education, Swed- claims and that the target for this area has, there- ish for immigrants and labour market measures, fore, been achieved with a good margin. are aimed at supporting residents in the job-seek- ing process. The indicator which measures the Benefit dependency continues to fall percentage of jobseekers who are self-supporting 5,696 Benefit dependency levels continued to fall in six months after leaving the Jobtorg Resource young people 2013. The percentage of the population depen- programme shows an outcome of 77.2 percent, were offered dent on financial assistance fell to 2.0 percent, slightly lower than the City Council’s target for summer jobs, the proportion of adults dependent on long-term the year of 81 percent. In 2013, as a result of the financial assistance compared with all adult failure to meet the target for this indicator, the a larger number residents fell to 1.3 percent and the proportion of Labour Market Committee began work on new than in any children who live in families claiming financial approaches to provide jobseekers with better previous year. assistance dropped to 3.6 percent. The posi- support after leaving the programme. For the tive benefit claims trend has also resulted in a indicator showing the percentage of 23-year olds reduction in the cost of financial assistance. In who have gained a foothold on the labour market 2013, the cost to District Councils of financial or who are studying, the outcome was 72.1 per- assistance was SEK 1,182 million, compared cent for young adults born in 1988.

PHOTO: FREDRIK FREDRIK PHOTO: PERSSON with SEK 1,211 million in 2012.

city of stockholm annual report 2013 37 district. A total of 1,700 young people were iden- measures including assisting adult new arrivals tified during the year, either through telephone to understand how Swedish society works. In calls or home visits. Only four percent of those 2013, 1,761 people, including 591 Stockholm in need of support turned down the offer. Of the residents, attended social orientation sessions at young people registered, 65 percent ended up the regional centre for social orientation run by either in employment or in education. the City of Stockholm. This is a significant rise on the figure for 2012. This increase is partly Co-operation aimed at increasing due to the fact that the stream of refugees into self-sufficiency the county has been considerable, and partly 88 % Co-operation within the City, as well as between due to the Public Employment Service and the of participants the City and other central players, including centre having established effective forms of felt that the employers and the Public Employment Service, co-operation. The feedback from participants has social orienta- is a prerequisite for the success of efforts to been positive. 88 percent felt that the training reduce isolation and ensure that employers can gave them a better understanding of Swedish tion course quickly find the skills they need. In 2013, the society. Within the framework of the Swedish gave them a parties involved took a proactive approach to for Immigrants programme, the government also better under- ensure effective coordination and a high level carries out important work to help new arrivals standing of of co-operation. One example of this in 2013 integrate into the community and working life. Swedish society. was that SFI Stockholm increased its co-opera- For more information on this, see the section ”A tion with employers with respect to the content city focusing on knowledge”. and planning of Swedish education for skilled workers (sfx courses) and vocational training. An award for successful integration The Labour Market Committee, Social Welfare Every year, the City of Stockholm presents the Administration and the District Councils have Nelson Mandela Award for efforts made by clubs also co-operated on the implementation of and associations, the business sector or the arts joint assessment instruments, so as to improve which result in making Stockholm a more open the targeting of the initiatives offered to the and integrated city. In 2013, the award went to unemployed who are in receipt of maintenance Meri Helena Forsberg, in recognition of her on- allowance. Co-operation is also an important going efforts to improve the participation in the

PHOTO: FREDRIK PERSSON PHOTO: part of the development work carried out within community of women born outside Sweden. The the framework of the outer suburb initiatives, judges particularly commented on the work by The City’s initiatives in summer jobs plays tions was raised during the year, which resulted where a major focus is on the opportunities for Ms Forsberg, in her role as Chair of the National an important part in giving young people the in an outcome of 1,308 placements, there is still education/training and work. Federation of Immigrant Women’s Associations opportunity to find jobs. This work was highly a gap between the actual outcome and the City (RIFFI), which has made a real contribution in successful in 2013. More than 6,000 young Council’s target for the year. Greater focus on integration in the City providing women born outside Sweden with people were offered summer jobs, and of these, The programme of work visits for young Between January and November 2013, the community information, social advice, help in 5,696 were employed by the City. This figure is people aged 16 to 19, who is not studying or City of Stockholm welcomed 1,730 regis- dealing with the authorities and emotional sup- higher than in any previous year. The target for in work, was enhanced and expanded in 2013. tered refugees. The City makes a real effort to port when faced with difficult situations.

Financial assistance Financial the number of trainee positions provided for job- Coordinators who work with specific target help these refugees integrate, with a range of assistance Financial seekers matched by Jobbtorg Stockholm has not, groups are based at all six local Jobbtorg offices. however, been achieved. Although the ambition Additionally, a new, open facility for the target level in planning for, and providing, trainee posi- group has opened on Åsögatan in the Södermalm

Indicator Goal Out- Goal Comments come achievement The Nelson Mandela Percentage of people dependent on financial assistance 2.3% 2.0% Met in full Award was presented in relation to the population as a whole to Meri Helena Forsberg Percentage of adults with long-term dependency on 1.4% 1.3% Met in full financial assistance in relation to the adult population as a in recognition of her whole ongoing efforts to Percentage of children growing up in families dependent 4.4% 3.6% Met in full on financial assistance improve the partici­ Percentage of 23-year olds with a foothold on the jobs 72.0%* 72.1% Met in full pation in the community market or in education of women born outside Percentage of jobseekers who are self-supporting six 81% 77.2% Met in part Work has begun on developing Sweden. months after leaving the Jobbtorg Stockholm programme better support for jobseekers after they leave the programme. The number of trainee positions provided for 1,600 1,308 Not met jobseekers matched by Jobbtorg Stockholm.

* City Executive Office’s targets for the year. DER MEIJS VAN LIESELOTTE PHOTO:

38 city of stockholm annual report 2013 city of stockholm annual report 2013 39 able growth as part of two major international by 2050 will require strong political measures in studies. The OECD report identifies Stockholm’s the heating and transport sectors. strengths, and eleven action points were pre- sented to further promote green growth. Many Focus on climate change and renewable of these points have now been included in the energy City’s budget for action 2012–2020, as well as in For the purpose of achieving the extremely am- the joint action plan of regional players. bitious climate target that the City shall be fossil In its report, the OECD acknowledged that fuel free by the year 2050, the City has drawn up The3 proportion Stockholm has succeeded in combining econom- a number of programmes and taken a range of ic growth with active and successful environ- actions. One such exampe is the solar cell invest- of the property mental work. The OECD states that the City of ment carried out in the Järva area by the City’s portfolio in which Stockholm is in the lead with respect to reducing housing companies, AB Svenska Bostäder and energy efficiency local greenhouse gas emissions, while the pop- AB Familjebostäder, in partnership with the Real measures were ulation and economy of the City has grown far Estate Committee. With around 10,000 square implemented in above the average for the OECD. Over the past metres of solar cells, the objective is to create the 2013 exceeded decade, the service sector has been Stockholm’s city district with the greatest solar cell density in fastest-growing economic sector, a trend which Sweden: Sustainable Järva – the sun city. the target by 3 has gone hand in hand with excellent environ- The housing companies have carried out percent. mental results. The OECD also observes that the energy efficiency-enhancing measures are part quality of the City’s water supply is excellent, of redevelopment work. The proportion of the and that very little waste is placed in landfill. real estate portfolio targeted for energyefficiency In its new research findings ”Stockholm – improvements has exceeded the target by 3 per- Green Economy Leader”, the London School of cent in 2013. Average energy consumption in the Economics unveils new scientific findings which Group’s properties is below the City Council’s show how Stockholm has a low carbon dioxide target of 170 kWh/m2. Excellent examples in- energy system, a relatively compact city centre clude Skolfastigheter i Stockholm AB’s (SISAB) with good public transport services, and an inno- measures which reduced energy consumption by vation-driven economy ideal for developing smart around 8 percent in 2013. In 2013, the heating city solutions and export markets. The report also and ventilation systems in 120 properties was examines the challenges Stockholm has to deal optimised. SISAB has also completed two pre- with to maintain its position as a green economy school facilities which are ideally suited for ener- leader in international terms. The London School gy-efficient management. Stockholm Vatten AB of Economics noted, among other things, that the has exceeded the target for biogas production at City’s ambitious goal of becoming fossil fuel free water purification plants.

Indicator Goal Out- Goal Comments come achievement PHOTO: ANNE LINTALA PHOTO: Electricity consumption per square 34 kWh 43 kWh Not met The city has committees and companies which require The Environment The metre significant amounts of electricity for their operations, and Environment The this drives up the outcome for the city as a whole. Several committees have failed to achieve their targets in this area. A sustainable city Energy consumption per m2 170 kWh 169 kWh Met in full Total phosphate levels in lakes 83% 100% Met in full The City of Stockholm is at the forefront of environmental protection, Greenhouse gas emissions per 3.2 3.5 Met in part Backlog in measurement documentation. Values for 2012 and is made excellent progress in attaining its goal of being a world- Stockholm resident tonnes tonnes reported in 2013. class, growing, sustainable city. In 2010, Stockholm became Europe’s In its report, Amount of food waste sorted at increase 50% Met in full first environmental capital. Since then, the City has continued to work source by the City’s operations and the OECD processed biologically actively and successfully on the sustainable development of the City acknowledged Percentage of land allocations with 100% 100% Met in full environment, green recreation areas and the transport system. maximum energy consumption that Stockholm requirement of 55 kwh/m2 Percentage of environmentally- Increase 100% Met in full has succeeded classified buildings in combining he climate issue forms an important part The City of Stockholm praised Amount/proprtion of food waste sorted Increase 10.9% Met in full economic at source by residents and operations of this and has remained the focus of the in international reports for biological processing work carried out by the City during the Stockholm is one of the world's leading sus- growth with The proportion of organic food in the 15% 17.2% Met in full year. Together with efforts in other areas tainable cities. This was attested by both the active and City’s own operations T Percentage of green vehicles in the 100% 97.4% Met in part The City is in process of phasing out non-green vehicles aimed at protecting the environment and safe- Organisation for Economic Cooperation and successful City’s fleet (excluding specialist and emergency vehicles). guarding the health of residents, the operational Development (OECD) and the London School environmental Percentage of electric vehicles 6.0% 8.5% Met in full goal is regarded as having been attained. of Economics, which have carried out separate work. examinations of the City’s model for sustain-

40 city of stockholm annual report 2013 city of stockholm annual report 2013 41 PHOTO: YANAN LI YANAN PHOTO:

PHOTO: SARA MCKEY PHOTO: An expanding city A flourishing city requires more housing. That is why tenancy properties, Air quality improved, but further choose to use sustainable transport alternatives tenant-owner properties, student housing, single-family houses and measures needed in our City, and the City’s profile as a place for owner-occupied apartments are currently under construction. The aim Despite the ambitious work carried out, Stock- cyclists is becoming increasingly clear. Import- of planning for new housing is to ensure even housing production at a holm is facing a number of challenges to ensure ant measures aimed at keeping up with this trend steady rate over the whole of the economic cycle. Housing production is

The Environment The that that living environment of the City will con- include an expansion of the public transport sys- Housing and home enviroment tinue to be sustainable. Unlike the global climate tem and improving the opportunities for people balanced against the estimated scope of investment, expected reloca- change challenges, the problem of air quality traveling on foot or by bike. Changing circum- tion levels and growth. in Stockholm is a local issue which can only be stances require new ways to look at traveling resolved by efficient local solutions aimed at re- and traffic, and a city planned on this basis. For he operational target was achieved in redevelopment and expansion. Construction During the year, ducing the negative effects of traffic. Air quality Stockholmers, this means more space allocated full in 2013. The targets for four out of began on 5,372 new homes, an increase of 69 the goal was in Stockholm has improved over the past few to buses and cyclists. Expansion of the public six indicators were achieved with a good percent compared to 2012. The target of 4, 500 raised from decades. The problem of specific pollutants on transport system includes the Citybanan and an 80 % Tmargin. One target, completed homes, new housing starts was, accordingly, achieved 100,000 homes some streets still remains, however, with respect extension of Tvärbanan. Surveys carried out was met in part with a discrepancy of 4 percent. with a good margin. 1,951 of the apartments to 140,000 to particles (PM10) and nitrogen dioxide (NO2). Another target, the net addition of student hous- commenced will be for tenant occupiers. The homes built The city has taken the measures for which it has Stockholmers residents happy with their in 2013 show that ing, was not achieved. target of 1,500 tenancy homes under construc- a mandate, but but lacks the authority to intro- surroundings more than eight in Stockholm is well placed to achieve the long- tion has, consequently, been achieved by a very over the period duce the most effective measure: a levy on the Stockholm would never be able to achieve ten Stockholmers term targets for housing construction in future good margin. 2010–2030. use of studded tires. the high environmental targets set without its enjoy the fact that years as well. The City has effective advance The target of 3,750 completed new homes enthusiastic and active citizens. It is, therefore, the city lifestyle planning, with almost 60,000 homes at various has been achieved in part. In total, 3,604 new- Stockholm and sustainable growth extremely pleasing that surveys carried out in Stockholm can stages of the process. The land is attractive to ly-constructed homes were completed during the Stockholm is growing very rapidly. 2 million during the year show that more than eight in ten build on. year. The construction of most of the completed people currently live in the County of Stock- Stockholmers enjoy the fact that the city lifestyle be combined with homes started in 2011, during the recession. A holm. By 2030, this figure will have risen to in Stockholm can be combined with proximity to proximity to Sharp increase in housing construction further 656 apartments were finished, through 2.5 million. The growing population poses a the countryside. More than half of the residents the countryside. Following a quieter period, housing construction redevelopment or expansion. challenge but, at the same time, it is an opportu- also feel that the City has set the bar high for its has again accelerated. In total, construction work The three housing companies have started the nity to expand the City sustainably. Many people development. began on 6,670 apartments in 2013, including construction of around 1,170 apartments. Due

42 city of stockholm annual report 2013 city of stockholm annual report 2013 43 44 Housing and home enviroment city plans during the year were achieved by a good plans duringtheyearwereachieved byagood ed localplansand4,000homesin landallocation cityscape. the supplementationofStockholm’s existing and NorraDjurgårdsstaden isunderway, asis Annedal, Liljeholmen/Årstadal,Hagastaden city developmentareasof Västra Kungsholmen, Expansion andplanningrelatingtothemajor Long-term planning holm programme. forward asaresultoftheStimulansförStock newly-produced apartmentshasbeenbrought production. The constructionofjustover2,600 of whichjustoverSEK4billionrelatestonew Stimulans förStockholmprogrammesince2009, 14.5 billionintotalhasbeeninvestedthe been upgradedorrenovatedduringtheyearSEK toilets andthreeshowerroomsinschoolshave homes/sheltered accommodationplaces,440 tion worthSEK3.1billionin2013.41,000 renovation ofpropertiesandhousingconstruc companies havebeenabletobringforwardthe programme [StimulusforStockholm],the use ofthebuilding. accommodation pendingadecisiononthefuture 70 apartmentsrenovatedandturnedintostudent Stockholm AB (Micasa)hascontributedaround student housingis310.MicasaFastigheteri 590 apartmentsandthenettotalofadditional ments intotal.In2013,thecompaniescompleted started theconstructionofaround9,500apart 1,500 peryear. Since2006,thecompanieshave companies willnotfullyachievethetarget of as wellappealsagainstseveralprojects,the to amisalignmentoftheplanningprocesses, of in 2014. in occupants new its receive Norra Djurgårdsstaden will The in Söderåsen district The targets of5,000homesinapproved/adopt- As aresultoftheStimulansförStockholm stockholm annual report 2013 - - - apartments startedduringtheyear. redevelopment andexpansionof 580student were completed.Overall,theconstruction, was notachieved. A totalof210studenthomes student homesintheplanningprocess. homes intheCity. There arenowjustover7,000 these intheCityofStockholm. been completedinthecounty, with4,000of By then,6,000newstudenthomeswillhave planning astudentaccommodationfairfor2017. players inthecounty, theCityofStockholm is In partnershipwithothermunicipalitiesand The Student City nature conservationareas. City structuralplanandwithoutusingvaluable in thePromenadstaden-Pedestrian-friendly to build150,000homes,basedonthestrategies Stockholm reportwhichshowsthatitisfeasible Committee hasdevelopedtheBostadspotential lection Committee,andHealthEnvironment Development Committee, Traffic and Waste Col homes peryearoverthe20-yearperiod. has nowbeenraisedtoanaveragerateof7,000 for arateof5,000homesperyear, thetarget 2010–2030. Consequently, insteadofplanning from 100,000to140,000homesfortheperiod the long-termtarget forhousingconstruction were approved/adoptedduringtheyear. total, andlocalplansforatotalof5,260homes margin. Landwasallocatedfor5,086 homesin The target of300completedstudenthomes In 2013,landwasallocatedfor2,232student During 2013,theCityPlanningCommittee, In theautumn,CityCouncilraised -

PHOTO: SWECO accommodation. more student producing on focusing been Stockholm has of the City years, ofFor anumber 5,000 margin. comfortable achieved by a of the targets plans was one adopted local approved/ in homes

PHOTO: FREDRIK PERSSON Bostäder isbuilding5,200apartmentsintheJär ed, actedasanenginefordevelopment.Svenska the urbanenvironmenthas,asoriginallyintend- year, showsthattheinvestmentinhousingand was discussedbytheCityCouncilduring Gård andGrimsta. with residentshavebeencarriedoutatHässelby relevant committeesinthecity, andconsultations by-Vällingby hasbeencirculatedthroughthe involved inthis. A proposedvisionforHässel- all theCity’s committeesandcompaniesare Söderort, Järvaandinnercitydisricts. Virtually attractive continues,basedonthevisionsfor The workofensuringthatthewholecityis City Attractive The Net addition of student homes student of addition Net allocated been has land which for homes of Number Number of homes in approved/accepted local plans plans local in approved/accepted of homes Number Indicator Number of tenanted properties under construction Number of homes completed construction under of homes Number The reportonthework Vision Järva,which - the routeofsouthboundunderground line. apartments intheagreementwillbebuiltalong position forgrowth. The majorityofthe46,000 urban constructionin Vision Söderortinastrong system placesthetarget areaforinfrastructureand places, inanewfrontagefacingUrsvik. additional 500-600apartments,aswellwork- across UrsvikPreparationsarebeingmadeforan blocks betweencentralRinkebyandthebridge of thestreetenvironmentatRinkeby Allé andthe construction workwillstartontheregeneration retail centrefocusingonfoodculture.In2014, was cutforRinkebystråket–anewmarketand by upto50percent.Duringtheyear, thefirstsod va district,andisreducingenergy consumption Goal 5,000 4,000 4,500 4,500 1,500 3,750 3,750 300 The agreementontheunderground railway come come 5,260 5,260 3,604 3,604 5,086 5,372 5,372 Out 1,951 1,951 210 - Not met Not Met in full in Met full in Met achievement Goal Met in part full in Met full in Met

Comments + 186 refurbished 186 + 24 newly-built achievement, 70% target 96% target achievement (+ 656 refurbished) 656 (+ achievement target 96% (+ 1,298 under redevelopment) city of stockholm annual report

2013 45 Housing and home enviroment A close-knit City A smoothly functioning traffic system that is reliable, predictable, safe and secure is crucial to meeting the business community’s transport In 2013, around needs, as well as citizens’ needs generally. An efficient transport system 510 bicycle park- with a good level of service is an important factor in reducing impact on ing places were the environment. A growing Stockholm demands expanded infrastruc- built, more ture in terms of roads, public transport and the cycling infrastructure. In cycle routes were addition to expanding the infrastructure, an increased level of accessi- signposted and bility in the region also requires that the existing infrastructure is main- more tyre infla- tained and resources allocated accordingly. tion stations were placed in strategic he operational goal was attained in The Traffic and Waste Collection Committee, locations around full in 2013. The assessment of goal Trafikverket and AB Storstockholm Lokaltrafik the city. attainment is based on a total appraisal have expanded their joint work on a central Tof the City Council’s indicators and an timetable, with the aim of improving coordina- LI YANAN PHOTO: assessment of the quality of operations carried tion to minimise the disruption resulting from the on by the City’s committees and companies numerous major expansions and redevelopment during the year. projects which are taking place around the City the region and the improvement of accessibili- With the adoption of the Accessibility Strate- and the region. An example of successful coordi- ty. The expansion of the underground is also a gy , the accessibility indicators will be adjusted Expansion of future traffic systems nation is the redevelopment of the Danviksbron. crucial stage in achieving the City's Vision 2030, in 2014, to aid the measurement of goals and In 2013, a number of major infrastructure proj- In 2013, an agreement was signed by the and in the implementation of the Structural Plan effects of the strategy. ects were planned and implemented. These are City of Stockholm, the government, the County ”Promenadstaden” - the Pedestrian-friendly City, essential to the improvement of long-term acces- Council, the City of Solna, the Municipality of the target of 140,000 new homes between 2010 Implementation of cykelmiljarden – the sibility in the City and the region. Such projects Nacka and the Municipality of Järfälla on the ex- and 2030 and the Accessibility Strategy. billion SEK investment in cycling include the construction of Norra Länken and the tension of the underground railway system from snow5 brushing The implementation of cykelmiljarden in accor- Citybanan, as well as the expansion of Hagasta- Kungsträdgården Station to Nacka Centrum and Realisation of the Accessibility Strategy dance with the Cycle Plan intensified in 2013. den and the work carried out in preparation Gullmarsplan, from Odenplan to Arenastaden machines were In 2013, efforts have concentrated on implement- 2013 saw an expansion of cycling infrastructure for the redevelopment of the Slussen area. To via Hagastaden, and from Akalla to Barkarby in service in ing the action plans underpinning the Accessibil- with, for example, cycle paths/cycle lanes along achieve the goal of increased accessibility in the station. The expansion of the underground sys- 2013. ity Strategy, with respect to the control network Karlavägen, Töresjövägen and Tenstavägen. region in the future, it is inevitable that accessi- tem is one of the most important issues for both strategy, cycle plans, parking plans etc. In the long The cycle path along Ärvingevägen has been bility will be reduced temporarily in some parts the City and the region, given the underground term, this is expected to help improve widenend, and cycle paths along Lövstavägen of the traffic system. system's vital contribution to the functioning of accessibility in Stockholm. One example is and sections of Bergslagsvägen have benefitted the creation of new bus lanes by repainting the from new lighting and resurfacing. On the one- Indicator Goal Out- Goal Comments car lanes and the removal of parking spaces on way Repslagargatan, bicycles have been allowed Traffic and infrastructureTraffic come achievement sections of Ringvägen, the Skanstull – Rosen- to travel in both directions. In 2013, a cycle and infrastructureTraffic The percentage of cycle users to increase by 9% Met in full The latest known figure from RVU 2012, not available lundsgatan section, Hornsgatan, S:t Eriksgatan, lane was also trialled on Odengatan. The project until 2013. Outcome for 2013 available in 2014. the Alströmergatan – S:t Eriksbron, Valhallavägen will continue in 2014, with the aim of making it Number of cyclists 63,000 57,756 Met in part The indicator measures an average over 5 years. In section and on Odengatan. The traffic lights have permanent. 2013, the number of bicycle trips was 62,640 above the average for inner cities, around 1,000 fewer than in been reset to improve priority for buses, and the In 2013, around 510 bicycle parking 2012. The average figure for 2009–2013 was 57, 756 public transport lanes, while illegally parked places have been built, cycle routes have been bicycle trips, around 2.5% more than the average for 2008-2012, which was 56,308 trips per 24-hour period. vehicles have been closely monitored by a fleet of signposted and more tyre inflation stations have The average speed of mainline buses to increase to 17 kph Met in part The average speed of inner city mainline buses motorbikes which has been expanded since 2012. been placed in strategic locations around the in the inner city was 17.4 kph in 2013, compared with 17.7 kph in 2012. Much of the Parking Plan was implemented City. The bicycle borrowing system has been The fall lies within the margin of error. in 2013. The aim of the plan is to reduce the expanded, and the goal is that around 30 stations The average speed of mainline buses to increase to 30 kph Met in full The average speed of suburban mainline buses in the suburbs was 30.1 kph in 2013, compared with 29.9 kph in 2012. number of cars driving around looking for some- will be built in the suburban areas nearest to the A slight increase of 0.7%. where to park, and to prioritise moving traffic City centre by spring 2014. The Bromma–Lilje- Increase in travelling time, inner city Unchanged -14% Met in full over parked vehicles, particularly on streets and holmen–Gullmarsplan–Hammarby Sjöstad belt streets, percent roads which form part of the primary bus service should be complete by the start of the season on Increase in travelling time, inner city Unchanged -24% Met in full network. Examples of changes implemented in- 1 April 2014. access, percent clude the expansion of City areas and areas along In 2013, the City started to use snow brushing Increased travelling time, cross-routes, Unchanged 15% Measurement not Data from Bergslagsvägen between Hjulsta percent representative of and Vällingby only. Unclear how representative this is some main streets with higher parking charges, machines in combination with salt and grit on the City of other cross-routes in the City. i.e. green and red charges. In 2013, Stockholms selected cycle paths, as a supplement to tradi- Increase in travelling time, suburban Unchanged 1% Met in part The average speed has increased during the morning Stads Parkerings AB helped improve accessibil- tional ploughing. Five machines in total are now access, percent rush hour and at night. The increase in travelling time in percent does, therefore, remain unchanged. The ity on the city’s road network, with occupancy in operation. actual improvement is 17 seconds per kilometer, rates in garages and parking areas at an all-time compared with 2012. high of 86 percent.

46 city of stockholm annual report 2013 city of stockholm annual report 2013 47 than expected. 2013 started with a final, popular festivals, ”We Are Sthlm”, a complete success. week of the August – “en djefla utställning” The ÅF Offshore Race 2013 is another example exhibition, on Strindberg, which subsequently of the City’s commitment to public events. The received the ”Exhibition of the Year” award, the City was also involved in the preparations for highest award presented by the museum sector. and implementation of the celebration of His Later in the year, the “Africa is a Great Coun- Majesty the King’s 40th anniversary as the head try” exhibition, featuring photographs by Jens of state. Assurs, attracted three times as many visitors as expected. Events which boost the City’s The cultural courses offered at Kulturskolan attractiveness Stockholm are very popular. In the most recent The aim is that Stockholm should be able to hold customer survey carried out in June 2013, the its own in the international competition for quali- teachers at Kulturskolan received top marks. In fied labour, businesses and visitors. Part of this is response to the statement ”Kulturskolan is fun”, a dynamic schedule of events which strengthen 97 percent of students agreed very strongly or the City’s brand and generate income. After the fairly strongly. In response to the statement ”I Ice Hockey World Championships, for example, learn a lot”, 92 percent of respondents agreed it was stated that visitors travelling to Stockholm very strongly or fairly strongly. During the year, had spent SEK 348 million. Other events, such Kulturskolan focused on equal treatment for all as Stockholm Pride and DN Galan, both helped students, and on making space for everyone who to market Stockholm internationally and attract wants to take part in the courses they offer. Stu- visitors. dents have been given the opportunity to interact with an audience at performances, concerts and exhibitions, to enhance the experience of being part of a greater context.

The City as a centre for culture and experiences In August, the City hosted the Stockholm A total of 550,000 visitors Festival of Culture and the We Are Sthlm youth attended the 6-day festival, festival. In 2013, the audience figures broke all making the 2013 edition of the records with room to spare as Stockholmers and tourists filled the squares and parks in central Stockholm Festival of Culture Stockholm. 550,000 visitors over six days made and We Are Sthlm, one of the

PHOTO: SARA MCKEY PHOTO: the 2013 version of the Stockholm Festival of largest youth festivals in Europe, Culture and one of Europe’s largest youth a complete success.

Culture and sports A City with an active leisure scene Culture and sports Various cultural and sporting events are to be given greater prominence in many operations. Children, teenagers and the elderly – everyone is entitled to enjoy music, art and sports on an everyday basis. Investment focuses on children and teenagers, and choice should be rich and varied. 82% The Stads­ teatern theatre he operational goal has been attained architect, Peter Celsing. The merger has created in part. A survey of residents showed opportunities for new thinking and an "all arts" has helped to that Stockholm’s young people are very approach. The Stadsteatern theatre has helped to provide an at- Tsatisfied with the cultural and sports provide an attractive cultural experience, with tractive cultural activities available. The survey also showed, 1,850 performances and an average seat take- experience, with however, that further work would be useful on up of 82 percent. The number of children and 1,850 perfor- Stockholmers' overall experiences of culture and teenagers has exceeded the target and reached a mances and an sport. figure of over 150,000. The Parkteatern Theatre held 186 performances, more than in any previ- average seat New all-arts centre ous year. take-up of 82 The merger of Kulturhuset and Stadsteatern percent. was implemented during the year, and resulted Vibrant and popular institutions in Stockholm being presented with an ”all arts Liljevalchs can look back on a successful year

centre” in line with the concept developed by the with 130,048 visitors, just over 20,000 more DENNIS WERNERSSON PHOTO:

48 city of stockholm annual report 2013 city of stockholm annual report 2013 49 50 Culture and sports city PHOTO: AEROCAM The openingofthe Tele more general audience boththe eliteStockholm and attracts a IP hasextendeditsopeninghoursforthegeneral are alsoavailable. The icerinkatZinkensdamms evenings. Duringthewinterseason,skiingtracks lic atStockholm’s StadiumonMonday-Thursday running tracksarenowopentothegeneralpub rinks forpuck-and-stickgames.Electrically-lit Östermalms IP hasopened itswholeoutdoorice sporting activitiesamongStockholmresidents. made topromotespontaneousparticipationin and aniceskatingbandycentre. the constructionofadedicatedgymnasticscentre 2014. Duringtheyear, investigationsstartedinto at StoraMossenareexpectedtoopeninearly opened intheautumn,andnewsportscentres Engelbrekthallen centreintheÖstermalmdistrict during thespring. To caterforindoorsports, the football pitchesalsostartedatKärrtorpsIP Construction oftwo11-a-side artificial grass a five-a-sideartificial-grasspitchat Tanto BP. full-sized 11-a-side pitches,whilethefourth is BP, Tanto BP andÅrstaIP. Three oftheseare artificial grassfootballpitchesopenedatKaknäs most welcomeimprovements.In2013,fournew Åkeshov werecompleted. to theequestriancentresinEnskede,Sätraand standard areneeded.In2013,improvements holm isgrowing,morefacilitiesofanevenbetter good standard.ButasthepopulationofStock residents haveaccesstosportsfacilitiesofa The SportsCommitteeensuresthatStockholm Increased access to sports 2018 and2020. the EuropeanHandballChampionshpsinboth Svenska Handbollsförbundet,willapplytohost addition, Stockholm,withtheassistanceof is acandidateforoneofthegroupgames.In will bedividedover13cities,andStockholm 60th anniversary, theEuropeanChampionships parts ofEuro2020. When UEFA celebratesits the opportunitytoapplyforcityhost the SwedishFootball Association andStockholm tural events. The qualityofthe Arena hasgiven holm atop-classarenaforbothsportingandcul of A numberofinvestmentshavealsobeen New artificial-grasssurfacesareoneofthe stockholm annual report 2 Arena hasgivenStock 2013 - - - - physical activity. ties istoencourageyoungpeopletakepartin regular attendance. The purposeoftheseactivi These activitiesaresupervisedbutdonotrequire and sportingfacilitiesduringschoolbreaks. group trainingsessionsattheCity’s swimming also beengiventheopportunitytotakepartin sporting activities.Childrenandteenagershave The workhasalsofocusedonprovidingdrive-in the publiccanborrowathleticsequipment. access toitsathleticstrackswheremembersof spontaneous involvementinsportsbyproviding skaters betteraccess.ÖstermalmsIP encourages public duringtheearlyandlateseason,toallow events arena. cultural and sporting Stockholm atop-class of the Tele2 opening The given has Arena -

PHOTO: STEFAN EK

PHOTO: HANS EKESTANG facilities and events cultural City’s the with mers Stockhol among satisfaction of level The Stockholm in facilities and events sports with mers Stockhol among satisfaction of level The Indicator ised sports ised organ to access to respect with people young among of level The satisfaction spontaneous spontaneous involvement in sports to to access respect with people young among of level The satisfaction in cultural activities the to opportunity participate personally to respect with people young among of level The satisfaction

- - - Goal 80% 50% 50% 50% 87% come come Out 60% 79% 79% 74% 74% 51% - Not met Not achievement Goal Met in full in Met Met in full in Met Met in full in Met Met in part

Comments Response Response frequency 50% inStockholm”. facilities of sports range the with satisfied I am whole, the ”On survey Taken citizens the from frequency frequency 50% Response in Stockholm” facilities and events cultural with I am satisfied whole, the ”On question survey’s citizens the from taken of indicator the Measurement city of stockholm annual report 2013 51 Culture and sports A safe and attractive city Stockholm should be a safe and attractive city for people to live, move around in and visit. The City of Stockholm must make every effort to create and preserve a safe, clean and well-lit city. Stockholm’s parks and green recreation spaces must maintain a high level of quality, and dark and unsafe locations must be lit.

he operational target was achieved in A better urban environment is part of the build- full in 2013. The assessment of target ing of a more secure environment in line with 60.5 % achievement is based on a combination Vision Järva 2030, and has been combined with The percentage of of the outcome of the City Council’s in- other initiatives in collaborations between the T Stockholmers who dicators and the committees’ operational reports. City, the police and community representatives. 25 out of 31 committees feel that the target for The report also stated that the peace and quiet of are satisfied with the operational area has been achieved in full, City districts can rapidly turn into social unrest the City's graffiti- while four committees feel that the target has and violence. During the outbreak of social un- removal efforts. been achieved in part. Three of the City Coun- rest, in May 2013, the good relations between the cil’s six indicators were attained in full, and three City, the police and community representatives out of six in part. The outcome for a number of were invaluable, and much was learned across indicators which do not achieve the target figure the board on how such events could be avoided ended up just below this level. in the future. As a step in the approved investment in A learning centre has been opened in Häs- 73 % safety, repeated safety surveys are carried out selby gård, to which the District Council and HANS EKESTANG PHOTO: throughout the city. The Traffic and Waste Col- the Culture Committee will locate a range of lection Committee participated in a total of 26 activities, including a library and culture school, security patrols, and has implemented security group activities aimed at young adults and other 73% feel safe in the The ”Vackra Stockholm” [Beautiful Stockholm] City district where they measures in parks and on unlit or poorly-lit park services for residents. The new library and meet- live. project was launched during the year, and paths, squares and stairways. will continue for a minimum of two years. It will help beautify the urban environment, including school Indicator Goal Out- Goal Comments yards, parks, paths, squares, beaches, exercise The livingThe environment The livingThe environment come achievement tracks, bridges and other public spaces. The percentage who feel secure in the City district 72% 73% Met in full where they live ing place will add more life and bustle around of two years. It will help beautify the urban en- The percentage who see Stockholm as an 86% 83% Met in part In previous years, the figures obtained varied accessible city for everyone from just over to just under the target for the Hässelby Gård, and should increase security at vironment, including school yards, parks, paths, year. The Traffic and Waste Collection Com- the square. squares, beaches, exercise tracks, bridges and mittee consider that the target for the year has been achieved in part. The City Executive Factors contributing to the City's achievement other public spaces. Office's conclusion is that the target has been of its targets for a clean and beautiful city are In the past few years, the housing companies achieved in part. the Traffic and Waste Collection Committee's have improved the results of tenant surveys relat- Other measures implemented within the framework 100% 100% Met in full of the RSA (Risk and vulnerability analysis) cleaning guarantees, under which cleaning and ing to the security, product and service indices. 278 Stockholmers' satisfaction with cleanliness and 55% 50.6% Met in part In previous years, the figures obtained varied emptying of waste baskets is carried out within The service and security indices are now about cruise ships tidiness from just over to just under the target for the 24 hours of the need being reported. Similar 80 percent for the three companies. The service called at the year. The Traffic and Waste Collection Com- mittee consider that the target for the year has requirements apply to the removal of graffiti. index and the product index have also improved Ports of been achieved in part. The City Executive The structural plan and the new "green ped­ for SISAB and Micasa. Office's conclusion is that the target has been Stockholm estrian-friendly city", will, at an overall, strategic Stockholm continues to be attractive to achieved in part. during 2013. Stockholmers' satisfaction with the running of parks 62% 58% Met in part 3 out of 15 committees judged that the indica- level, reinforce the City's green and blue quali- visitors. During 2003, the number of guest nights and green areas tor targets were achieved in full, 10 in part and ties. The implementation is based on a totalled around 6.4 million, which is equivalent 2 committees not at all (Hässelby-Vällingby District Council and Rinkeby-Kista District living and dynamic image of the City, focusing to an increase of 1 percent. In 2013, 12 million Council). on the objectives of “promenadstaden - the pe- passengers and 278 cruise ships arrived through Stockholmers' satisfaction with removal/repair 55% 60.5% Met in full destrian-friendly city”. The ”Vackra Stockholm” the Ports of Stockholm. of graffiti/vandalism [Beautiful Stockholm] project was launched during the year, and will continue for a minimum

52 city of stockholm annual report 2013 city of stockholm annual report 2013 53 simplifying and modernising the communication paths between pre-school and parents/guardians. Staff have been trained in practical IT and media communication. This is also helping improve communications with parents and enabling easier and more rapid contact through channels such as SMS and e-mail. The pre-school units have A city with freedom of improved their external information provision through measures including information bro- chures, exhibitions about their operations and choice and diversity information briefings at the pre-schools. Stockholmers can now choose providers in areas such as pre-school, During 2013, Stockholm Vatten AB rectified problems in the waste system within 4–8 hours school, care for the elderly and support and service for the disabled. in over 99 percent of cases, and received a high Everyone's right to choose must be respected, and it is the City's Satisfied Customer Index of 82 percent. responsibility to create and offer sufficient flexibility. Diversity in accommodation A prioritised area for the City's housing com- he operational goal was attained in full business owners. The ”Upptäck Stockholm” panies is to create diversity and balance in the during the year. For four out of six [Discover Stockholm] app has won the ”Årets accommodation provision. One of the provisions indicators, which are all followed up hållbara projekt 2012” [sustainable project of the of the City Council's Directive is that the City's Tthrough user and residents surveys, the year] award, and has been downloaded by over housing companies must offer their tenants, in DER MEIJS VAN LISELOTTE PHOTO: conclusion is that the City Council's target for 100,000 users. The app provides a range of in- a number of districts, the opportunity to acquire the year was achieved. Simple and accessible formation, including the City's winter activities, properties for conversion to tenant-owner homes. 900 of these were let as student apartments, information on the implications of freedom of climate-smart routes, and directions to swim- The conversions carried out over the past five around 750 as homes for young people and 75 as choice and the alternatives available is vital if ming baths and playground facilities. years have led to more mixed lease types. In sheltered housing. The target for letting accom- Stockholmers and users are to exercise their During 2003, AB Stokab has helped an 2013, 1,253 apartments in the outer suburbs were modation for young people was exceeded, and freedom of choice. increasing number of the City's residents and sold to their tenants. the result is the highest ever. Information for residents on freedom of businesses gain access to data communication. The estate agency, Bostadsförmedlingen Overall, it is clear that the proactive approach choice is provided both through verbal and The expansion of the fibre network has contin- i Stockholm AB, is contributing to increased taken in respect of freedom of choice has had a written information, partly from the City's Con- ued, and demand for new fibre connections re- mobility in the housing market through greater positive effect on target achievement. In general, tact Centre through Äldredirekt [Age Direct], mains high. The number of connections provided regionalisation and cooperation with private the District Councils have reported improved the City’s assistance processing staff and the totalled 1,785, which exceeds the target of 1,600. property owners. Over the year, the company results between years for the indicators relating Citizens’ Office, as well as through application received 10,110 apartments for selling, and of to the freedom of choice targets. This is a clear initiatives aimed at older residents. Central Guide these, approximately 4,140 were from private indication that Stockholmers are enjoying greater support is provided on the City's website through A guide on freedom of choice has been pro- property owners, the highest figure ever. Around freedom of choice. Jämför Service [Compare Service]. The District duced. The guide will provide support for Councils are working continuously to adapt the officials in the various operatons, and the goal is

Choice and diversityChoice information to meet the specific requirements of to give Stockholmers better guidance on making Indicator Goal Out- Goal Comments and diversityChoice various users, such as the disabled. their own choices. During the year, the Con- come achievement tact Centre and the Senior Citizens Committee The percentage of users who realise that 76% 76% Met in full The outcome is higher than 2012, and the target for the Digital aids carried out a programme of improvements to they have freedom of choice with respect year has been achieved. This is positive in view of the to pre-schools. rising child population. 9 out of14 District Councils New digital e-services have been developed to provide residents with the best possible infor- achieved the targets for the indicator in full, and give residents a good overview of the welfare mation and guidance. One of the fruits of this 5 in part. services which the City offers. To enable resi- project is a list of questions which officials use The percentage of users who realise that 68% 65% Met in part The failure to achieve the target for the year is probably they have freedom of choice with respect due to the fact that the target group often has very dents to make informed decisions on the choices when clients phone. This ensures that relatives to care for people with disabilities. special needs, which means that only a limited number offered, the City has developed the "Jämför and senior citizens who telephone are provided of residential units may be suitable. 3 out of 14 District 100,000 Councilsachieved the targets for the indicator in full, 10 Service tool" on the website, in which both mu- with appropriate and objective assistance in mak- in part and 1 District Council failed to do so. people have nicipal and private providers can be compared. A ing their choices. The percentage of users who realise that 85% 81% Met in part The outcome in 2012 was 82%. The indicator relates to new digital aid will be developed during 2014 to downloaded they have freedom of choice over the Education Committee. schools. further improve the service. It will make it easy Development work that produces results the ”Upptäck The percentage of users who realise that 71% 91% Met in full The outcome is better than 2012, and exceeded the to rank providers on a number of criteria which The number of children has increased sharply in Stockholm” app they have freedom target for the year by a comfortable margin. All commit- are relevant in exercising choice. To facilitate the recent years, and it is gratifying that the overall [Discover of choice with respect to care for the tees achieved their target for the indicator. elderly and home-help services. choice of upper secondary school, the Stockholm results of the committees' user surveys are in line Stockholm], The percentage of users who realise that 56% 81% Met in full The outcome was well above the target for the year. County Association of Local Authorities has with the City Council's targets for pre-school. they have freedom of choice with respect 11 out of 14 District Councils achieved the target for the created a County-wide "Jämför Service tool" for The take-up of choice rose by two percentage to care for the elderly and sheltered indicator in full, and 3 in part. housing. upper secondary schools, which came into use points over 2012. This is a result of the pro-ac- The percentage of residents who knew 51% 51% Met in full The outcome is better than 2012, and achieved the City during the year. tive approach adopted by the District Councils. A where to find information on which to Council's target. The indicator relates to the City Execu- The development of e-services has helped number of District Councils, for example, have base their choices. tive Committee. improve services to the general public and begun to develop a pre-school web aimed at

54 city of stockholm annual report 2013 city of stockholm annual report 2013 55 PRE-SCHOOL

The number of children in the City's pre-schools Recruiting and retaining is continuing to increase, and, in 2013, just pre-school staff a priority over 53,000 children were enrolled in the City's The staff/student ratio declined marginally pre-schools. In the past eight years, an average compared with 2012, but remains at a high level of 2,000 new children a year have been given in comparison with the rest of the County of pre-school places every year, although the rate Stockholm and Sweden in general. The percent- of increase has now slowed to some extent. The age of pre-school teachers on the City payroll is substantial expansion required to cope with largely unchanged, but the differences between accepting the large number of new pre-school District Council areas have narrowed. During the children continued, and the childcare guarantee year, the District Councils implemented a large was fulfilled throughout the City during the year. number of initiatives to recruit highly-qualified The trends and challenges are rather different personnel and, at the same time, retain the cur- in different parts of the City, with, for example, rent pre-school staff. As the City is growing, and eight of the District Councils being responsible the supply of pre-school teachers is low, the is- for the increase over the year, while the number sue remains a continuing challenge and intensive of children fell in other parts of the City. efforts to rectify the situation are a high priority. The number of Satisfied parents and the focus on the children enrolled in pre-school, public educational mission pre-school and family Parents in Stockholm are overwhelmingly satis- creches. fied with the pre-school facilities run by the City and by independent players. The City-wide user Children enrolled in pre-school surveys show the level of satisfaction at the same level or higher than in 2012 on all questions. Total Under City auspices Family creches Two areas where the improvement is especially marked involve the pre-school's educational mission; the level of parent satisfaction with the children's' linguistic development and with their approach to mathematical thinking. During the year, Södermalm District Council and the Culture Committee sponsored a reading project to reverse

PHOTO: BJÖRN TESCH PHOTO: the trend of falling reading ability among school pupils. The presence of Reading Ambassadors at pre-schools, along with early contact with books, A City focusing on knowledge will encourage pre-school children to develop their language skills and interest in reading.

Pre-schools and schools and development Pre-schools and schools Pre-schools and schools in Stockholm must provide children with whatever they need to learn and progress. Each year, every school unit he operational goal was attained in full basis of this discussion, any needs for inputs/ draws up a qual- The substantial during the year. 15 of the City Council's support for each school are identified. These ity report, setting expansion 23 indicators in the educational field dialogues are supplemented with a range of man- out and analys- required to cope were achieved in full. In the City's man- agement and analytical tools to assess how well T ing the unit's with accepting agement and control system, a dialogue forms a the schools are run. the large number crucial part of the systematic approach to quality. In the pre-school sector, the units also draw success in The educational operations utilise a range of up quality reports which are collated in the achieving of new pre-school result dialogues and follow-up meetings. committees' overall quality reports. Several of targets. children con- Each year, every school unit draws up a the District Councils have developed their own tinued, and the quality report setting out and analysing the unit's follow-up tools to monitor and analyse system- childcare success in achieving targets. These reports are atically the trends in achieving targets in the pre- guarantee was an important component of the dialogue between schools' educational mission. Common templates fulfilled through- the unit and management. The result dialogues and processes for follow-up facilitate discussions between compulsory school/area managers and about the curriculum targets and enable staff to out the City in the school management discusses the school's focus on the connection between working meth- 2013.

results and progress over recent years. On the ods and children's progress. FREDRIK PERSSON PHOTO:

56 city of stockholm annual report 2013 city of stockholm annual report 2013 57 58 Pre-schools and schools city are highlysignificantforpupils'performance. in Sweden,andtheeducationallevelofparents, es betweenschools. The numberofyearsspent are concentrated. This hasreducedthedifferenc- schools inwhichtheimprovedresults2013 nomic conditions,anditisthesecategoriesof schools withthemostchallengingsocio-eco The poorerresultsin2012involvedparticular the mostchallengingsocio-economicconditions. differences havebeengreatestinschoolswith results havefluctuatedupanddown,the an improvementover2012.Inrecentyears, schools, aslightdropontheprecedingyear. 2013, around820pupilsattendedspecial-needs chosen oneoftheCity'smunicipalschools.In quarters ofStockholmschoolpupilshave 3,000 onthefigurefor2012.Morethanthree- compulsory schoolinStockholm,anincreaseof During 2013,around82,000pupilsattended SPECIAL-NEEDS AND SCHOOL COMPULSORY SCHOOL with 32 percent of pupils in year 2 commenting with 32percentofpupilsinyear2commenting satisfied withthelackofpeaceandquietforwork, in year8. The pupilsenjoyschool,butareless are moresatisfiedwiththeirschoolthanpupils development ofeverypupil. creating sustainablechangeswhichbenefitthe the effects ofinclusiononteachingpracticein courses haveprovidedincreasedknowledgeon pupils whorequirespecialassistance. Training support indevelopinglearningenvironmentsfor gy. The EducationCommitteealsooffers schools velopment, mathematics,scienceandtechnolo been taken,includingreadingandlanguagede initiatives aimedatincreasingteacherskillshave target achievement.Inrecentyears,various range ofcentral-governmentefforts toincrease own developmentinitiativesandparticipateina qualifications asaresultofhighabsencerate. to reachpupilsatriskofleavingschoolwithout Administration, focusedoncollaborativeefforts the Committee,jointlywithSocial Welfare secondary schoolin2012. Among otherthings, lowest proportionofpupilsqualifyingforupper achievement inthe17schoolswhichhad tinued itslong-termefforts toincreasetarget Percentage who do not achieve the targets in one subject one in targets the achieve not do who school Percentage secondary upper for qualified pupils of Percentage Average qualifications (points) Academic year schools compulsory municipally-owned of results the for The Swedish National Agency for Education's statistics several or all subjects all or several in one, targets the do who not achieve of pupils Percentage of In 2013,theEducationCommitteecon The qualificationsawardedinyear9showed Pupils in the lower school years, years 2 and 5, Pupils inthelowerschoolyears,years2and5, The EducationCommitteeimplementsits stockholm annual report 2013 - -

- - programmes haveaffected pupils'results. requirements andthewayinwhichanumberof always follow-upandanalysetheirdevelopment also highlightedthefactthatsomeschoolsdidnot in thereceptionofnewarrivals. The inspection proach topupilswhorequirespecialsupportand there are,forexample,shortcomingsintheap- schools' results,andtheinspectionshowedthat to thesubstantialdifferences whichexistbetween Schools Inspectoratedid,however, drawattention targeted workonthepartofschools. The high-quality educationreflectingambitiousand was thatthevastmajorityofpupilsreceivea in 2013. The Inspectorate'soverallassessment an inspectionoftheCity'scompulsoryschools The SwedishSchoolsInspectoratecarriedout schools of compulsory City-run Inspection for Cityschoolsis49percent. use digitaltools,whilethecorrespondingfigure year 8inindependentschoolsstatethattheyoften does standoutisthat71percentofthepupilsin are notsignificantlydifferent. Oneissuewhich sory schoolsandindependentcompulsory school. The resultsproducedbyCity-runcompul- that theyhavebeenteasedbyotherpupilsinthe

PHOTO: LIESELOTTE VAN DER MEIJS achievement figures. the lowest targetthe had that 17 schools to target increase term achievement efforts in The Education Committee continued long- its Stockholm 2012/2013 City of of City 24.8% 87.4% 222.4 8.2% Stockholm 2011/2012 City of of City 85.9% 25.4% 221.9 8.7%

politan areas 2012/2013 Metro 83.2% 213.6 213.6 8.8% 30% during the year.during holm's schools Stock attending additional pupils of theIs number + 3,000

National 2012/2013

87.6% 213.1 213.1 7.4% 23% - schools, 67percentofthepupilsaresatisfied. of tenpercentagepointson2012. At independent City's schoolsefforts tocombatbullying,adrop Only 62percentofpupilsaresatisfiedwiththe with theschools'efforts tocombatbullying. feel safe,but,ontheotherhand,arelesssatisfied ondary schools. measures foreducationprovidedbyuppersec currently undertakingworktodevelopresults in thecommunity. The EducationCommitteeis personal developmentandactiveparticipations ment andcontinuedstudies,aswellproviding must provideasoundfoundationforemploy and itspurposehasbeenwidened. The education cial-needs uppersecondaryschoolwasopened, regulations. Inautumn2013,thenewspe plete uppersecondaryschoolundertheprevious 2012/2013 werethelastbatchofpupilstocom Saturdays. offered tuitionforuppersecondary pupilson tion. Thorildsplan UpperSecondarySchoolalso to supplementtheircompulsoryschooleduca pupils fromimmigrantbackgroundswhoneeded Tensta UpperSecondarySchoolwereaimedat at Blackeberg UpperSecondarySchoolandRoss secondary schoolcourses. The summerschools splan UpperSecondarySchooloffered upper provided. The summerschoolrunby Thorild Saturdays foruppersecondaryschoolswere clear linktopupils'backgrounds. show substantialdifferences inresults,anda Comparisons betweenschoolsandprogrammes pils whocompletethecoursewithinfouryears. terms ofqualificationsandthepercentagepu extent comparedwiththeprecedingyearin 2013, however, theresultsdeterioratedtosome schools havebeenfairlystableovertime.In school duringtheyear. pupils attendedspecial-needsuppersecondary of about600ontheprecedingyear. About 450 upper secondaryschoolsinStockholm,adrop During 2013,around25,800studentsattended UPPER SECONDARY SPECIAL-NEEDS AND SCHOOL UPPER SECONDARY SCHOOL excluding immigrants. years, four within education school secondary upper Completed Percentage obtaining passes in core subjects in other programmes Percentage with other basic higher in education entrance qualifications subjects core in passes obtaining Percentage Technology programmes mathematics and English within the Natural Sciences/Languages/ of Swedish, subjects in core the passes obtaining Percentage IM) (excl. obtained points Average year Academic schools upper secondary municipally-owned of results the for statistics The Swedish National Agency for Education's Pupils attheCity'suppersecondaryschools Pupils whocompletedtheireducationin In 2013,summerschoolsandtuitionon The resultsobtainedinuppersecondary ------secondary schools. and theirschoolthanpupilsinindependentupper schools aremoresatisfiedwiththeirprogramme the whole,pupilsatCity-runuppersecondary future educationalchoicesandworkinglife.On influence, andthelinkbetweeneducation improve thesituationwithrespecttopupils’ Both theindependentandCityschoolsmust

PHOTO: FREDRIK PERSSON

Stockholm 2012/2013 City of of City 89% 98% 82% 85% 15.0 Stockholm 2011/2012 City of of City 89% 88% 84% 97% 15.1 politan areas city of 2012/2013 stockholm Metro 80% 98% 83% 87% 14.5 satisfied. schools are secondary upper at of the pupils 91

annual National 2012/2013 % report 98% 85% 84% 87% 14.0 2013 59 Pre-schools and schools 60 Pre-schools and schools city preceding year. StudentsattendingSFIcourses tered inregularSFIcourses,anincrease onthe basic andupper-secondary leveleducation. achieved withagoodmargin, both inrespectof opportunity tostudy. for adultshavegivenawidertarget groupthe basis. Apprenticeships andvocationaltraining usually takesanumberofcoursesonfull-time A studentenrolledforvocationaleducation 40 percentofthenumberpeopleinvolved. vocational courses,butthisisequivalenttoonly full-time places. education courses,whichisequivalentto7,371 In 2013,20,963peopleattendedcity-runadult (SFI) ADULT FOR EDUCATION IMMIGRANTS SWEDISH AND of During 2013,19,422peoplewere regis The resultswithinadulteducationwere Around 60percentofthevolumerelatesto stockholm annual report 2013 - does inoneyear. studying formorehoursthanafull-time student regular studies. These studentsdonot,however, obtain qualificationsandqualify toproceed enable themtowork,butreturnafter aperiodto to thosestudentswhosuspendtheirstudies carry onforalongerperiod. The same applies evening classes,whichmeansthattheircourses increasing numberofstudentsarestudyingat target of47percentpassrateafteroneyear. An of thecourse,butCitydidnotachieve tives andtookthequalificationafterend level I. on studylevelIIIandonly5percent are well-educated.46percentofthestudents More studentscompletedthecourseobjec - completing the course. after passes obtain level adult education at upper secondary participants course of 82 %

PHOTO: MAGNUS SELANDER number of employees. number The percentage of teacherspre-school per Indicator Number of pre-school children per employee per children of pre-school Number Percentage of satisfied parents satisfied of Percentage development” and learning children's promote to ability pre-school's of ”the assessment Staff Number of children per group per children of Number in mathematics in year 3 test in national the tests in intermediate the marks pass achieved who of pupils percentage The targets in all subjects the in 9 year achieved of who pupils Percentage school at in safe 8 year feel of who pupils Percentage targets in all subjects the in 6 year achieved of who pupils Percentage school compulsory in teachers of qualified Percentage in mathematics in year 6 test in national the tests in intermediate the marks pass achieved who of pupils percentage The 3 year in Language as a Second in Swedish/Swedish test in national the tests in intermediate the marks pass achieved who of pupils percentage The year 6 year in Language as a Second in Swedish/Swedish test in national the tests in intermediate the marks pass achieved who of pupils percentage The programmes national for qualified are who of pupils Percentage safe at school at safe feel who pupils secondary of upper Percentage the end of the spring term at certificate in final the in a level subjects all pass at least with pupils secondary of upper Percentage school ary Percentage of qualified teachers in upper second Unauthorised absence from compulsory school pleted upper secondary education have 20, who com aged of residents, Percentage school Unauthorised absence from upper secondary completion of the course. the of completion sec after grade pass with upper at education adult level ondary participants course of Percentage course. of the completion after grade pass with education Percentage of course atparticipants basic adult year one after grade approved with of SFI students Percentage - - - Goal 7.4% 90% 90% 86% 80% 80% 80% 69% 69% 80% 77% 92% 85% 85% 84% 72% 42% 84% 87% 47% 3% 3.6 4.9 16 come 75.2% 45.3% 87.4% Out 1.9% 96% 86% 80% 86% 38% 95% 82% 85% 93% 84% 67% 84% 94% 70% 14.8 91% 6% 3.5 5.0 - achievement Goal Met in part in Met part Met in part Met in part Met in part Met in part in Met part full in Met full in Met Met in full in Met full in Met Met in full in Met Met in full in Met Met in full in Met Met in full in Met Met in part full in Met Met in full in Met full in Met Met in part in Met part Met in full in Met Met in full in Met Met in part Met in full in Met full in Met

Comments percentage point lower outcome than in 2012. than outcome lower point percentage comparability. had pre-schools City-run a one affects this and included, were pre-schools 2012. year, Last below independent Outcome targets for the year.the for targets their achieved Councils of out 14 District 6 as 2012 on aggregate. outcome same The year. preceding the in than outcomes poorer had as year, the a for City whole but the targets their achieved Councils 8 of out 15 District achieved their targets for the year.the for targets their achieved 2012 the Councils 8 survey. of out 15 District in than outcome higher point A percentage one year. in preceding the than was higher outcome The year. up on preceding the was a little year. the for outcome The targets their achieved 12Councils of out 15 District Improvement of two percentage points on 2012 on points percentage two of Improvement than the preceding year. higher point was percentage one outcome The on for a longer period. period. on a for longer carry courses their that means which classes, at evening studying are of students proportion year. increasing An preceding the than higher points percentage was four outcome The city of stockholm annual report 2013 61 Pre-schools and schools CARE FOR THE ELDERLY

Quality 2013 was 93 percent, which is a fall of 2 percent- Satisfaction with the City's care for the elderly age points over 2012. Thirteen out of fourteen remained high during 2013, and rose within a District Councils met the City Council's targets. number of areas. However, the opportunities In 2010 and 2011, 78 percent of the residents to affect how and when care is provided are in sheltered accommodation were satisfied with regarded as declining further. Satisfaction with their conditions. There was an improvement sheltered accommodation remains high, and 2012, when 84 percent of residents were satis- Stockholm's results are well up with those of the fied, and this figure is unchanged for 2013. The rest of the country. City Council's target is 84 percent, which was On 1 January 2014, the Swedish National achieved by ten District Councils. As in 2012, Board of Health and Welfare's regulations on 89 percent of residents felt secure. The City sheltered housing for dementia sufferers came Council's target of 90 percent was not, however, into force. During 2013, the process of imple- reached. The levels of satisfaction with both the menting these was carried out, both through food and the meal situation was at 76 percent, a individually-adapted assistance assessments small improvement over 2012. and through checking that the City's sheltered The level of satisfaction with the home-help housing provision is in conformity with the service was 84 percent, which is unchanged on 84 % regulations. the figure for 2012. Overall, the City Council's of the residents The District Councils worked throughout targets were achieved. The feeling of security in in sheltered 2013 on embedding the values of the City of residence' own homes has deteriorated slightly, accommoda- Stockholm. This took the form of lectures and but, even so, the City Council's target of 85 per- tion were satis- seminars for all professional categories, discus- cent was achieved. On the other hand, the target fied with their sions at workplace meetings and planning days, on ability to influence how the help is provided as well as through assistance claim processors was not achieved. accommoda- participating in the Senior Citizens Committee's tion. training on the values of care for the elderly. The qualification level has improved Micasa continued its work to raise the Throughout 2013, the City Council also prior- quality of the City's sheltered housing provision. itised skills development for City employees The initiatives taken through the Äldrelyftet involved in care for the elderly. Many of those programme have enabled the process to be who have worked for years within the City's care accelerated. The largest projects during the year for the elderly service, have high, but not formal were the renovation of the service apartments at skills. These members of staff will be given the Skolörte and the sheltered housing at Skärhol- opportunity to validate their skills, and to study men, along with roof and facade renovation. individual subjects to bring them up to the basic educational level. 164 people have gone through User surveys the basic course for auxiliary nurses. It has also City-wide user surveys have been carried out been possible to validate previously completed

The Care sectorThe since 2008. A user survey on day care was, how- training up to auxiliary nurse level. Basic courses Care sector ever, carried out for the first time in 2010, and in Swedish as a Second Language have also been showed that 89 percent of users were satisfied provided through the adult education service, with the operation. The level of satisfaction for KomVux.

Indicator Goal Out- Goal Comments come achievement

PHOTO: LIESELOTTE VAN DER MEIJS VAN LIESELOTTE PHOTO: Percentage of satisfied care recipients – residential 84% 84% Met in full Percentage of satisfied care recipients – social assistance 90% 93% Met in full day care service A city providing good care Care recipients’ feeling of security – Home-help service 85% 85% Met in full Care recipients’ feeling of security – Residential 90% 89% Met in part The outcome is one percentage point below the City Council's target. Six of Care must encompass security, dignity and respect for the individual's fourteen District Councils met the City Council's targets. wishes. Activities will focus on achieving excellent quality. The individual's The food tastes nice – Residential 76% 76% Met in full right to information, influence and participation is recognised at all times. Experience of the food and meal situation – Residential 76% 76% Met in full Care recipients' experience of how they can influence the 75% 73% Met in part The outcome is two percentage points way in which the help is provided – Home-help service below the City Council's target. Five he operational goal was attained in full in The results of the year's user survey, however, indicate District Councils achieved the City Council's targets. 2013. The operational goal was attained in that the City Council's target for support and service Percentage of satisfied care recipients – Home-help 84% 84% Met in full full since the targets for care for the elderly for people with disabilities was not achieved. service Tand individual and family care were achieved.

62 city of stockholm annual report 2013 city of stockholm annual report 2013 63 SUPPORT AND SERVICES FOR PEOPLE WITH DISABILITIES

The target for the operational area was achieved In addition to the problem of physical accessibil- in part during the year. This assessment is based ity, priority has been given to measures aimed at on the fact that the results of user surveys show providing information and communicating deci- that the City Council's set target was achieved sions on assistance claims to the target group. In in part. 2013, the programme on participation for people There are six indicators within the operational with disabilities was firmly established within area, and all are measured through annual user the City's committees. surveys. Two of the indicators achieved the City Council's target for the year in full, while two achieved it in part and two not at all. There was some decline in satisfaction with the residential service, a slight rise for short-term residential care and the figure for day care was unchanged. The work of the District Councils throughout the year has been characterised by a clear user focus, and user surveys remain an important tool in the improvement process. During the year, the District Councils examined the areas which had deteriorated and took action to improve results and achieve the targets set. The results show, however, that there is still room for improvement, and the District Councils have not succeeded in improving the user experience suf- ficiently to ensure that the City Council's targets are achieved in full. Several District Councils have taken part in the "What do we do with the results?” project. This approach is intended to develop the report- ing procedure and the use of the results of user surveys, identify potential improvement mea- sures and spread good examples. The objective is for the City's operations to use the results of the surveys in a structured way in the improvement work. Care sector Care sector PHOTO: SARA MCKEY PHOTO:

Indicator Goal Out- Goal Comments come achievement Percentage of people who feel that they are To 83% Met in full well-served by the City's personnel (support increase and service for people with disabilities). Percentage of people who feel that they can To 65% Met in full influence how they help is provided (support increase and service for people with disabilities). The users' experience of security – statuto- 91% 88% Met in part The outcome is three percentage points below the ry accommodation, adult and child (support City Council's target. Five District Councils achieved and service for people with disabilities). the City Council's targets. Satisfied users – day care (support and 91% 82% Not met The outcome is nine percentage points below the City service for people with disabilities) Council's target. No District Council succeeded in achieving the City Council's target. In 2013, the programme on Satisfied users – short-period accommoda- 91% 87% Met in part The outcome is four percentage points below the City participation for people with tion (support and service for people with Council's target. Three District Councils achieved the disabilities) City Council's targets. disabilities was firmly established Satisfied users – statutory accommodation, 89% 80% Not met The outcome is nine percentage points below the City within the City's committees. adult and child (support and service for Council's target. No District Council succeeded in people with disabilities). achieving the City Council's target. PHOTO: SARA MCKEY PHOTO:

64 city of stockholm annual report 2013 66 Care sector city parent groups. ing in ABC parentmeetings and406inKomet charge. During2013,3, in theseparentalsupportprogrammes, freeof 3–12 agegrouphavebeeninvited totakepart All parentsinStockholmwithchildren inthe the relationshipbetweenparentsandchildren. children's positivedevelopmentbystrengthening are offered toparentswiththeaimofpromoting Barn iCentrum-allchildreninfocus)andKomet Parental supportprogrammessuchas ABC (Alla forEducation parents operations. social psychiatry, arealsoregularly usedinthe and dependencecare,DURinthefieldof ASI (AddictionSeverityIndex)fordrugsmisuse cils. The investigationandassessmentmethods, needs ofthechild)isusedbyallDistrictCoun BBIC (Barnetsbehovicentrum-focusingonthe investigation anddocumentationprogramme, models whicharesupportedbyresearch. The and knowledge-basedmethodstreatment weight continuestobegivenevidence-based In bothindividualandfamilycare,considerable supported by research Using methods INDIVIDUAL FAMILY AND CARE of stockholm annual report 017 parentsparticipat 2013 - - opportunity tooffer supportthroughnon-in early intervention,andconstantlyreviewthe The DistrictCouncilsfocusonpreventionand and early intervention Focus on prevention ed. Inaddition,itisvitalthatthe interventions investigations arehighqualityand wellsupport intervention. The goalrequires,forexample,that reopened within12monthsfrom theendof services whodonotneedtohave theircases well asadults,requiringintervention fromsocial proportion ofchildrenandyoungpeople,as The CityCouncil'sambitionistoincreasethe The measures adopted give results people escapefromcriminalnetworks. falling intoacriminallifestyleandtohelpyoung who aimtohelpindividualsareatriskof include workingwithsocialinterventiongroups making animportantcontribution.Examples with thepoliceandvoluntaryorganisations also laboration betweensocialservicesandschools, environment. Muchoftheworkisbasedoncol and tofindformsofinterventioninthehome intention istoplacefewerpeopleininstitutions in combinationwithotherinterventions. The stitutional carealoneornon-institutional - - -

PHOTO: SARA MCKEY 3,017 parent groups. inKomet406 and meetings in ABC parent participated parents 0173, 2013,During the City. The preventive approachremainsthe the aimofcontinuingtoreducehomelessness in A large numberofprojectsareinprogress, with homelessness Combating and professionals. on cannabishavebeenarrangedforbothparents number ofeducationalandinformationprojects gramme ofpreventiveactionagainstcannabis. A prevention coordinators,hasinitiatedapro in collaborationwiththeCityDistrictCouncils’ measures, theSocialServices Administration, basis oftheStockholmSurvey. Among other tions havebeeninitiatedanddevelopedonthe during 2013,andanumberofvariousinterven prevention andvisitingworkremainedapriority in narcoticsusetheCity. The City'sdrug most recentsurveyin2012showedareduction scentrum Stockholmeverysecondyear. The behaviour, whichiscarriedoutbyPrevention people's breachofsocialnormsanddeviant The Stockholmsurveyisacensusofyoung of narcotics use the reduce to Efforts intended outcomes. of theinterventionsdecidedonandachieved intervention, whichshowsthatthevastmajority tervention within12monthsofthecompletion 74.5 percentofadults,didnotrequirefurtherin percent ofchildrenandyoungpeople,aswell lead totheintendedresults.During2013,82.8 offered bysocialservicesrespond to needsand Stockholm Survey that they did not use tobacco use not did they that Survey Stockholm in the stated who people of young Percentage Stockholm Survey that they did not use alcohol use not did they that Survey Stockholm in the stated who people of young Percentage Stockholm Survey that they did not use narcotics use not did they that Survey Stockholm in the stated who people of young Percentage Stockholm Bostad through let apartments training and of trial number The assessed was support for requirement their in which manner the with satisfied were who psychiatry social within Percentage of people undergoing intervention committee the by operated apartments trial of number to total the in relation contract own tenant's to the transferred apartments of trial Percentage of the intervention. of intervention. the end the 12from within months reopened cases their to do have who not need care family and individual Percentage of adults requiring intervention under months from the end of the intervention. of end intervention. the the from months 12 within reopened cases to have not need their do who care family and individual under intervention requiring people young and of children Percentage Indicator - - - - close relationships. port thesocialservices'workagainst violencein among couples anddeveloping guidelines to sup - to obtaininformationontheextent ofviolence the year. This includedsurveyingCityresidents combating violenceincloserelationships during The Cityfurtherdevelopeditsapproachto violencebating in close relationships com and safety women's for Initiatives sub-goals oftheindividual. following upinterventionsandthegoals veloping knowledge-basedapproachesthrough Council’s havemaintainedtheirfocusonde In thefieldofsocialpsychiatry, theDistrict psychiatry Social förmedlingen iStockholm AB. trial andtrainingapartmentswereletbyBostads the tenant'sowncontract.Duringyear, 308 apartments, and140ofthesehadtransferredto of thehomelesswillbecarriedout. amounting to2,866.During2014,anewsurvey compared withthepreviousyear, with the total been adropinthenumberofhomelesspeople latest survey, in2012,showedthattherehad in theCityiscarriedoutalternateyears. The during 2014. years 2014–2019. This willbeimplemented has developedahomelessnessstrategyforthe priority, andtheSocialServices Administration Goal 80% 80% 20% 65% 320 In total,theDistrictCouncilshad565trial Surveying thenumberofhomelesspeople - - - come come 82.8% 24.8% 79.4% 74.6% Out 308 ------Met in part Met in part Met in full in Met Met in full in Met Met in full in Met achievement Goal

Survey is carried out in alternate years. alternate in out carried is Survey Stockholm The 2013. during measured Not Survey is carried out in alternate years. alternate in out carried is Survey Stockholm The 2013. during measured Not Survey is carried out in alternate years. alternate in out carried is Survey Stockholm The 2013. during measured Not preceding year was 372 apartments let. let. was year 372 apartments preceding in the outcome The Yearover New the period. companies housing the from replies awaiting were 25 cases as around in full, achieved was not of apartments 320 target The 80%. was year preceding the in outcome The in part. rest the and in year the full, for targets their achieved Councils 6 of out 14 District contract. own to tenant's the transferred had these 140 and of apartments, trial 565 had Councils District the In total, 20%. year’s preceding the than was higher outcome The not. did two and in one part in year the full, for targets their achieved 12Councils of out 15 District targets for the year in full, and the rest in part. in part. rest the and in year the full, for targets their achieved 11 Councils of out 14 District targets for the year in full, and the rest in part. in part. rest the and in year the full, for targets their achieved Councils 8 of out 14 District Comments - - - city of stockholm 308 Stockholm AB. i förmedlingen by Bostads were let ments training apart 308 trial and the year,During annual report - 2013 - 67 Care sector The City as an employer Stockholm's rapid growth sets challenges for all operations. How well The City's staff surveys the City succeeds in achieving its operational targets and providing show that staff are highly Stockholmers with a quality service is very much dependent on the committed and motivated, commitment and competence of the staff and managers. and they appreciate that their work is meaningful.

hat is why it is exremely important development. The trend in sick leave among that the City is, and continues to be, an the committees reflects the trend in sick leave attractive employer offering exciting in the country in general, with an increase in Tand challenging jobs. The operational particular in short-term sick leave during 2013. FREDRIK PERSSON PHOTO: target was achieved in part during the year. The majority of companies report a continued drop in sick leave, and in virtually all companies, and provide training in areas such as the work of skills is ensured partly through training pro- Motivated and committed staff the level of sick leave is lower than the City environment. City-wide initiatives include grammes and new recruitment. For new recruits, Stockholm's rapid growth sets challenges for all Council's target of 4.4 percent. The efforts to re- a number of development groups, in which the skills requirement is analysed in relation to operations. Staff surveys show that the City’s duce sick leave continue to have a high priority, managers and leaders are given the opportunity tasks and objectives. A major focus area is the staff are committed and motivated to improve the and committees and companies are employing to exchange experience, thoughts and ideas with supply of managers. City's operations, and they appreciate that their a range of approaches at organisational, group colleagues from other departments and compa- work is meaningful. This year, the factors which and individual level. The City of Stockholm's nies. In addition, management seminars were ar- Future-oriented employer with measure important preconditions for active rehabilitation process is the foundation of this ranged, dealing with inclusion and treatment, and Stockholmers at the centre participation at work are measured in the active approach. The increasing adoption of the Oper- a project was implemented to assist newly-em- A sharp focus on development and quality in co-creation index (AMI). The outcome was 79, ation and Health approach continues to achieve ployed managers to obtain a driving licence. operations ensures an effective service. Continu- which is a very stable result in comparison with excellent results at unit level. This approach A management development programme has ity is a vital factor in quality, and the majority of other municipalities. It is vital for the City to has led to increased participation as attention is commenced, the specific management develop- the District Councils have intensified their efforts 79The outcome continue to be an attractive employer and to en- given to staff commitment and follow-up with a ment programme and trainee programme in care to offer full-time employment to employees sure that the City staff and managers enjoy good clear link to the committee's targets, obligations for the active for the elderly has been concluded. The City's who have had to work part time. This is a long- working conditions to enable them to deliver and performance. co-creation trainee program for university graduates, with term project, which has yet to take full effect. high-quality services to Stockholmers. index is 79, 12 participants, which commenced in autumn Full-time work is the norm for new recruits. The The results of staff surveys at the majority Management development which is an 2012, was completed during spring 2013. The percentage of full-time employees increased in of companies indicate an index in the 74–95 The City of Stockholm is one of Sweden's largest excellent result main aim of the programme was to facilitate the 2013 and now totals 86.3 percent. percent range, which means that the City's goal employers, and the City is growing rapidly. The generation change and help in marketing the City In December, a total of 38,825 people were of being an attractive employer is largely being City's 1,600 managers and their staffs play a in comparison of Stockholm. employed by the City of Stockholm. Of these, attained. central role in providing Stockholmers with a with other 36,280 worked in the City's District Councils and

The City The as an employer quality service. On-the-spot and clear leadership municipalities. Supply of skills 2,545 were employed in the City's companies. City The as an employer Good workplaces which promotes active staff commitment is deci- In order to maintain a high level of quality In 2013, a great deal of the reorganisation The City of Stockholm's workplaces welcome sive for all operations. throughout the City's operations, skills devel- work has been devoted to providing advice, both diversity and utilise the employees' commitment The City implements many different initia- opment has been prioritised. Special initiatives in individual cases and in new application direc- and expertise to the full. A working environ- tives to ensure that managers and leaders have have been implemented for managers, staff in tives on redundancy. A number of courses deal- 38,825 ment that stimulates learning and development the knowledge and expertise to perform their health and care, teachers, pre-school personnel ing with the City's reorganisation process have Is the number is decisive for both the operation's results and duties effectively. District Councils and adminis- and other groups within the City's operations. been held for managers and external partners, as of employees for employees' health, happiness and personal trations implement local leadership programmes The City collaborates with university colleges well as for the City's human resources staff. The working in the and universities, particularly in the Stockholm City's District Councils have taken a structured City's District Indicator Goal Out- Goal Comments region, utilises research results, welcomes and future-oriented approach to reorganisation come achievement students on work practice and thesis preparation, in the face of a shortage of work, and this has Councils and Active co-creation index 80 79 Met in part Stable high level and also carries out development work jointly enabled them to deal successfully with redundan- administrations Percentage of part-time staff offered 75% 56% Not met The percentage of part-time employees has fallen after with the higher education sector. Project and de- cies within their own organisations. The number at the end of full-time employment intensive efforts by the District Councils, and this has velopment work aimed at improving the quality of reassignment discussions for personal reasons the year. resulted in a very much higher outcome than in the preced- ing year. of operations are carried out, for example, in fell slightly in 2013 compared with 2012. This Managers and leaders place clear 80 68 Met in part partnership with the Karolinska Institutet, Stock- is partly due to the fact that the District Councils requirements on their staff holm University and Ersta Sköndal University continue to work actively on rehabilitation and Members of staff know what is 92 91 Met in part Stable high level College. Each District Council is responsible for partly because an increasing number of members expected of them in their work defining its skills requirements for its operations. of staff have chosen ”career-switching” as an Sick leave 4.4% 5.5% Not met In particular, an increase in short-time Sick leave The City's District Councils are very much aware alternative in the City's rehabilitation process. Number of young people who obtained 5,100 6,579 Met in full The District Councils, 5,848 and the companies, 731 of future skills requirements, and develop strate- summer work arranged by the City gies to meet the challenges they face. The supply

68 city of stockholm annual report 2013 city of stockholm annual report 2013 69 A cost-effective city The City’s finances rest on foundations that are both stable and secure. The City’s control systems make budgetary control easier, while keeping to the budget framework provided should be a matter of course. Budgetary control is necessary for ensuring that the funds allocated by the City Coun- cil are sufficient. This operational goal was attained during the year.

his assessment is based primarily on by SEK 18.9 million compared with a forecast the full year 2013 as late as the end of Novem- the surplus shown in the financial non-deviation in the second four-month report. ber. The City Executive Office considers that the statements in accordance with the The City Executive Office believes that the Dis- Committee has had poor forecast accuracy and Tbalanced-budget requirement, and on trict Council has not maintained control of costs, financial control for several years and feels that the fact that all of the City’s financial targets especially with regard to care of the elderly. Fore- the Committee must take steps to improve this for sound financial management have been casting has been unsatisfactory and consequently situation in 2014. achieved. the District Council failed to take adequate steps Transport and Waste Collection Committee: The financial surplus/deficit is the measure in time to achieve a balanced budget. The City’s waste collection operations report a net deficit by which the City’s financial position can most The Development Committee reports a net surplus of SEK of SEK 12.6 million. Income is SEK 13.2 lower clearly be summarised. The City’s surplus of deficit of 1.0 percent despite a SEK 4.9 million 2,286.4 million than budgeted, primarily due to more people than SEK 2,286.4 million in accordance with the surplus on operating expenses and SEK 27.1 in accordance expected sorting their food waste and receiving balanced-budget requirement shows that the ob- million in capital costs. During the year, the with the bal- a reduction on the tariff. Expenses are SEK 0.6 jective of a balanced budget has been attained. Committee failed to reach the increased income million under budget. The City Executive Office anced-budget The provisions made in previous years’ financial requirement by SEK 37.6 million. The Com- notes the positive news that more people are statements mean that the City is well-prepared mittee has delivered a considerable surplus for requirement sorting their food waste, but points out that the for the major investments in infrastructure that a number of years and the City Council budget shows that Committee needs to improve its forecast accu- lie ahead. A total of approximately SEK 8.1 has been adjusted accordingly. The Committee the objective racy considerably. The City Executive Office billion has now been set aside for contributions announced a deficit early on in the year, but was of a balanced notes that the deviation increased from SEK 3.0 to infrastructure costs. unable to recoup this as the year progressed, budget has been million in the first four-month report to SEK 9.6 The City District Councils and Specialist partly due to the requirement for non-recurring million in the second four-month report before attained.

Committees report a surplus totalling SEK impairments. The Committee’s net result is SEK increasing further to a SEK 12.6 million deficit ANNE LINTALA PHOTO: 304.7 million after income transfers. This 11.1 million under budget and is due primarily to in the financial statements. The City Executive is below the level of 2012 when the surplus a lower level of income than was budgeted, but Office notes that the Committee’s deficit shall be the exception of Stockholms Stadsteater AB, totalled SEK 346.9 million. Meanwhile, the also to SEK 13.7 million in impairments. financed from the fund for waste collection op- which following its merger with Kulturhuset has City’s total income from taxation, government The Transport and Waste Collection Com- erations, under financial management, and such faced completely different conditions and had

A cost-effective city grants and equalisation compensation has mittee’s forecast accuracy and financial control financing shall be preceded by a City Council significantly more activities that had not been A cost-effective city increased by a total of 3.1% compared to 2012. for transport and street operations have been resolution, which may be made retrospectively budgeted. The objective-driven efforts undertaken by the unsatisfactory in recent years. In the second four- in this case as the fund is already being utilised. Due to delays as a result of appeals in the City’s District Councils in 2013 have once again month report of 2013, the Committee forecast a The City Council’s right of disposition to decide planning process, these companies have not paved the way for achieving balanced finances negative budget deviation of 2.5 percent of the the central provision has thus been curtailed, implemented the budgeted target investment in 2014. Committee’s net budget. The Committee reports something which the Committee had been made volume. The total investment volume for the The City Executive Office considers that the a positive deviation of 5.4 percent in connection aware of on previous occasions. year amounted to SEK 8.1 billion against the Kungsholmen District Council had inadequate with the financial statements. The City Executive In the second four-month report of the Chief budgeted SEK 9.5 billion. internal controls during the year. The District Office also notes that the Committee was fore- Guardians Committee forecast a negative budget Council’s deviation from the budget increased casting a negative deviation of 1.7 percent for deviation of 5.5 percent of the Committee’s All activities financed by the City net budget. The Committee reports a negative must be efficient budget deviation of 0.6 percent in the financial Efforts to free up resources for the core activities Indicator Goal Outcome Goal statements. During the year, the Committee of the City’s operations continued in 2013. The achievement was asked to undertake a review of the Com- City’s operations must be cost-effective and Committee’s budget compliance after surplus transfers (all Committees) 100% 99% Met in full mittee’s expenses and subsequently take the characterised by healthy finances for current and Committee’s budget compliance before surplus transfers (all Committees) 100% 99% Met in full steps necessary to achieve a balanced budget. future taxpayers alike. Committee’s forecast accuracy, FMR2 (all Committees) +/- 1% 0.4% Met in full The City Executive Office has assessed that the This operational goal was attained during the City’s surplus (SEK million) Min 0.1 2,286.4 Met in full Committee has commenced efforts satisfactorily, year. This assessment is partly founded on the City’s capital costs as a percentage of net operating costs Max 7.0% 6.3% Met in full but that further action must be taken to present a fact that the indicator for the administration’s City’s net operating costs as a percentage of tax revenue Max 100% 98.3% Met in full balanced budget in 2014. proportion of total costs has been met. The City’s equity/assets ratio incl. pension commitments Min 34% 34.0% Met in full The majority of companies have reached and administration’s share amounted to 5.9 percent in exceeded the balanced-budget requirements, with 2013, down 1 percent on the previous year.

70 the city of stockholm’s annual report 2013 the city of stockholm’s annual report 2013 71 Every company is working to reduce its the target situation, as well as specifications. The administrative expenses and the vast majority of specifications were published in autumn 2013 them are surpassing their target of a decreasing with the intention of announcing the awarding of proportion of administrative expenses. the contract in the summer of 2014. Implemen- The Service Committee is continuing its tation will take place thereafter and, by 2017, all efforts to streamline the City’s administrative Committees and companies are expected to be services. The Committee’s services and client using the shared finance system, with Group con- support are being developed on the basis of the solidations being fully possible from 2018. Committees’ and companies’ needs and with Progression of the SIKT project (Stockholm the aim of increasing efficiency for the City as Information and Communication Technology) a whole. Contact Centres make Stockholmers’ continued in 2013. The procurement process has The City is day-to-day lives easier, and this operation was been concluded and contracts have been signed investing in the expanded during the year to answer questions on both with Teito Stockholm for system adminis- development support and services for people with disabilities. tration, system operations and the service desk, of e-services and with Telia for the provision of fixed-line and to make the E-services mobile telephony. Further procurements are also day-to-day The City is investing in the development of taking place in accordance with the mandate of e-services to make the day-to-day lives of the City Executive Board, which are expected to lives of citizens, citizens, entrepreneurs and visitors even easier. lead to new data communication agreements and entrepreneurs A number of e-services were launched during the provision of mobile phones, smartphones and and visitors the year: tablets (terminals) within the framework of the even easier. • Urban environment comments SIKT project. These procurements are expected • Shared ground composure map to lead to contracts being concluded in 2014. • Online social counselling The efficient purchasing project is pro- • Authorisation guide for entrepreneurs gressing as planned, and in 2013, electronic • Young persons’ guide (guidance room at the purchasing was introduced in four Committees guidance centre for young people) and a number of schools within the Education • Talking-book library and library services made Committee. The aim of the project is to improve

A cost-effective city available to people with disabilities the governance, monitoring and control of the A cost-effective city • Digital city museum City’s purchasing, which, among other things, results in increased contract credibility, statistics Administrative IT support procurement to improve procurement processes, more secure In accordance with its task, the City Council is and more efficient processes for purchasing and in the process of procuring a Group-wide finance the ability for quicker follow-up by way of order system. The first phase was completed in the ledgers, etc. Wide-scale implementation will take summer of 2013 with the intention of establish- place in connection with the implementation of a ing descriptions of both the current situation and new Group-wide finance system.

Indicator Goal Out- Goal Comments come achievement Administration’s percentage of total costs (all Committees) Reduce 5.9% Met in full The outcome for 2012 was 6.8%. Proportion of people who find it easy to communicate with the Increase 60% Met in full Annual target 48% City of Stockholm New indicator for 2013 Percentage of residents who feel the City’s operations provide Increase 50% Met in full The outcome for 2012 a good service was 46%. Percentage of residents who know where to find information to Increase 63% Met in full The outcome for 2012 get in touch with the City’s operations was 48%. Percentage of people who feel the City’s website works well and Increase 82% Met in full The outcome for 2012 is user friendly was 75%. PHOTO: YANAN LI YANAN PHOTO:

72 the city of stockholm’s annual report 2013 the city of stockholm’s annual report 2013 73 General economic analysis

A protracted and uneven global of 2013, the payroll expense rose by 2.6 percent is home to a greater proportion of the population recovery compared to the corresponding quarter in 2012. aged 25–54 – the cohort in which employment is The global economy showed weak development It is clear that the growth rate has gradually highest. This high employment rate also reflects in 2013 with considerable differences between decreased, which indicates a slow-down in the the fact that the City of Stockholm is at the cen- countries. Growth continues to be hampered by economy. National trends are following the same tre of Sweden’s largest and most efficient labour the fallout of the financial crisis, although there pattern. market region. are signs of a nascent recovery. While the US Meanwhile, the Chamber of Commerce’s economy has performed better than expected, economic barometer for Q4 2013 shows that Strong population growth continues developments in the Eurozone continue to be the feeling among Swedish companies became The City envisions that the population of the marked by the debt crisis with slightly negative more positive during the year and is now above City of Stockholm will amount to one million growth. The trends in the financial markets in the historical average. In Q4 2013, the indicator people by the year 2030. We now know that the China were shaky, although GDP growth was rose from 16 to 23, indicating positive economic population has increased faster and that the City still estimated to be close to 8 percent in 2013. development. The economic indicator for the expects to pass the one million mark as early Other developing countries such as India, Brazil country as a whole rose from 11 to 19. as 2022. The population had already passed and Russia showed considerably weaker growth. 900,000 in February 2014. The City passed

The OECD estimates that total world GDP More people employed 800,000 residents in April 2008. This means that LI YANAN PHOTO: growth for the year in 2013 amounted to 2.7 The situation in Stockholm’s labour market it has taken less than six years for the population percent and will reach 3.6 percent in 2014. improved during the year. This is evident of Stockholm to increase by 100,000 residents. crease on 2012 of 1.7 percent for the county and The Swedish economy is expected to have primarily through an increase in the rate of This rate of population growth in Stockholm is 1.9 percent for the City. grown by 1.5 percent in 2013. Development was employment. Approximately 16,800 more people The number matched only in the period 1941–1947 when the The population increase in the City of Stock- held back by the strong Swedish Krona and weak were employed in Q4 2013 compared with the of employed City’s population grew from 600,000 to over holm can be explained by the continuation of a international demand. The domestic economy same period in 2012. The rate of employment in people in the 700,000. strong net natural increase, i.e. the number of performed somewhat better, with household relation to the population also had a clear upward In recent years the county has accounted for births minus deaths (47 percent of the increase), City of Stock- consumption contributing most to GDP growth trend, increasing by 1.2 percent to 73.9 percent half of Sweden’s population increase, and this but primarily by positive net migration (53 during the year. Low inflation meant greater between Q4 2012 and Q4 2013. Unemploy- holm is still trend looks set to continue. In December 2013 percent of the increase). Almost three-quarters real wage increases while tax cuts strengthened ment did not decrease proportionally, however. growing at a the county’s population totalled 2,163,042 and of this net inward migration is from outside household finances. The situation in the Swedish According to Statistics Sweden’s labour force healthy rate. that of the City 897,700. This represents an in- Sweden. labour market improved during the year. survey, unemployment as a percentage of the Foreign net migration This is evident primarily through the increase in labour force was between 6 and 7 percent in the the rate of employment. Unemployment did not City of Stockholm during the year. Unemploy- Employment rate, 15-74 decrease proportionally, however. The relative ment decreased by 0.6 percent in Q4 2012. 80 unemployment rate fluctuated at around 8 per- The employed proportion of the population Stockholm Sweden Göteborg Malmö 47 % 42% cent throughout the year. aged 15-17 is significantly higher in Stockholm 75 than in the rest of the country and other major 11 % The Stockholm economy continues to grow cities, as shown in the diagram below. This can Net birth rate The Stockholm economy is continuing to grow, partly be explained through purely demographic 70 Domestic net migration but the rate has slowed. During the third quarter factors. Compared to other regions, Stockholm Population devel- 65 opment in the City of Stockholm 2013, Payroll expenses, percentage changecompared broken down by 60 to corresponding quarter last year sub-components.

Sweden Stockholm County City of Stockholm Source: Statistics Sweden 55 Economic and financialEconomic analysis 50 and financialEconomic analysis 2005 2006 2007 2008 2009 2010 2011 2012 2013

Some key figures for the City of Stockholm 2013 2012 Change Employment rate, age 15-74 (Q4) 73.9% 72.7% +1.2% Unemployment (Q4) 6.1% 6.7% -0.6% Vacancies (employment office) 125,496 129,872 -3.4% Start-up companies 12,430 12,172 +2.1% Bankruptcies 1,593 1,670 -4.6% Notice 6,824 8,098 -15.7% Source: Statistics Sweden, payroll expenses = number of hours worked * hourly wage

74 the city of stockholm’s annual report 2013 the city of stockholm’s annual report 2013 75 ings for the year of SEK 2,502.0 million, less acquired the property Vallgossen 14 (St Göran’s an external dividend paid of SEK -0.1 million Upper Secondary School), where reconstruction Economic and financial analysis and the effect of changed accounting policies work has begunto build around 250 student amounting to SEK 2,433.1 million. The balance apartments. The annual report covers the City of Stockholm Municipal Group. The Municipal Group includes the sheet total amounts to SEK 150,072.0 million To develop more apartments, the housing City and the municipal companies. Municipal companies essentially means the City’s majority-owned (140,839.8). This results in a SEK 9,232.2 mil- companies have has made some acquisitions companies within the Stockholms Stadshus AB Group. Stockholms Stadshus AB is owned by the City lion increase in the balance sheet. during the year. Familjebostäder has acquired the of Stockholm and constitutes a unifying function for most of the city’s limited companies. For a more The equity/assets ratio of the Municipal Group properties Sandaletten in Älvsjö and Kransbi- detailed description of the limited companies, please refer to the annual report for Stockholms amounts to 66.4 percent, excluding pension com- ndarvägen in Midsommarkransen. Stockholmsh- Stadshus AB, which can be ordered from www.stadshusab.se. Kulturhuset was transferred from the mitments (67.2). The corresponding equity/assets em has acquired leasehold rights in Årsta and ratio for the Municipal Group including pension Skärholmen. City of Stockholm to Stockholms Stadsteater AB during the year. The City of Stockholm’s sharehold- commitments is 54.2 percent (54.9). A long-term For the fifth year in a row, Stimulans för ing in Mässfastigheter i Stockholm AB was sold to Stockholms Stadshus AB. stable equity/assets ratio is important for giving Stockholm accounts for a significant share of the Municipal Group good long-term solvency the corporate group’s investments. Investments ABOUT THE MUNICIPAL GROUP and thereby good financial manoeuvrability in the amount to approximately SEK 2.3 billion for the future. The table below shows the equity/assets year, which corresponds to around 30 percent of The City’s annual financial statements include Group’s allocations and taxes amount to SEK ratio during the period 2009–2012. the companies’ total investment volume. Among all Committees, i.e. operations primarily funded 290.4 (503.1) million and earnings for the year other things, the projects relate to new construc- through taxation, and the annual financial state- amount to SEK 1,050.3 million (2,503.3). tion projects (SEK 0.9 billion), the renovation of Equity/assets ratio for the Municipal ments for financial management, which include Group incl. pension commitments, the property stock and energy-efficiency projects. the City’s central financing. The combined finan- Depreciation percent Stockholm’s growing population” is expected cial statements for the City of Stockholm Mu- Depreciation of property, plant and equip- 2013 2012 2011 2010 2009 to increase further in the years to come. This nicipal Group, which are the local government ment increased by SEK 153.0 million in 2013, 54.2 54.9 54.5 59.2 56.5 necessitates a major expansion primarily of equivalent of the consolidated financial state- amounting to SEK 3,446.0 million (3,293.0). compulsory schools and pre-schools. During ments, include operations conducted in the form This increase in depreciation can be explained the year, SISAB participated in school plans for of limited companies in addition to the City’s by the high level of investment in recent years, Investments a growing Stockholm and produced area plans own operations. The purpose of the consolidated particularly in relation to housing. Depreciation The Municipal Group’s gross investments have to meet demand. A decision has been made in financial statements is to provide a comprehen- has not increased more, despite high investment remained at a high level and in 2013 amount the City Council regarding the renovation, new sive picture of the finances and commitments of volumes, mainly because investment is taking to SEK 12,379.2 million (14,372.5). The gross construction and extension of Fridhemsskolan/

the entire Municipal Group. place in new construction projects where depre- investments for the Stockholms Stadshus AB Kungsholmen compulsory school to meet the Investment in construction in ciation does not commence until completion. Group have also remained at a high level and in growing demands of the area. During the year, progress Earnings for the year 2013 amount to SEK 8,112.0 million (9,419.2). SISAB completed the Lugnet school in Hammar- Earnings for the Municipal Group include Financial income and expenses The investment volume for the Stockholms Stad- by Sjöstad and continued construction of a new earnings for the City, the Stockholms Stadshus Net financial income/expence for the Municipal shus AB Group is lower than budgeted and lower school for 720 pupils in Mariehäll. AB Group and the City’s other companies which Group was negative, amounting to SEK -495.2 than the previous year, mainly due to time delays During the year, Micasa Fastigheter complet- 60% are not part of the Stockholms Stadshus AB million (-431.3). Net financial income/expance in new constructions projects. ed the rebuilding and renovation of accommoda- Acquisition 36 % Group. After eliminating intra-Group balances, has deteriorated during the year primarily due tion in Dalen, Rio senior housing in Gärdet, and of land and property including dividends, earnings for the Municipal to increased borrowing. The reason why net The companies’ investments Tunet in Vällingby. During the year, the city’s Group after taxes and net financial items amount financial income/expense has not detoriated In 2013, housing companies started around 1,170 access to hospital beds and long-term needs was 4 % to SEK 2,502.0 (4,828.2) million. The lower more given the increase in borrowing is the low apartments which, as a result of issues such as assessed, which will form the basis for Micasa Acquisition of other assets earnings for the year compared to last year can interest rates during the year. deferred or contested development planning, is Fastigheter’s continued planning. The investi- mainly be attributed to lower earnings for the a somewhat lower figure than the target of 1,500 gation shows that the total new hospital beds The diagram provides Stockholms Stadshus AB Group. Cash flow statement apartments per year. During the year, Stockhol- requirement will not increase until 2033. During an overview of how Generally speaking, the financial cash flows of mshem started construction of the Bjällerkransen the years when there is no pressing need for the Municipal Group’s gross investments the entire Municipal Group are centrally man- project in Västertorp and Golvläggaren in Årstadal. housing for the elderly, Micasa Fastigheter rents Earnings for the Municipal Group, were allocated in 2013. SEK million aged through the city’s administration. Municipal Together, the two projects will provide around 430 out the accommodation to students. The investments pri- companies have either receivables from or liabil- apartments. In addition, the Töfsingdalen project in Almost half of Stockholm Vatten’s invest- marily comprise new 2013 2012 2011 2010 2009 housing construction 2,502.0 4,828.2 1,473.6 5,118.9 5,689.0 ities to the City. According to the finance policy Norra Djurgårdsstaden got under way, comprising ments relate to development investments. Other and the acquisition Economic and financialEconomic analysis for the City of Stockholm Municipal Group, the around 150 apartments and a pre-school. major projects relate to investments in pipe of land and property. and financialEconomic analysis Group’s cash flows should be offset against each Familjebostäder completed the Pendlaren 1 networks and water and sewage works. The City Construction in prog- ress refers to invest- Earnings for the year after financial income/ other, and all external financing through loans project in Älvsjö in the autumn of 2013. The Council reached a strategic decision in 2013 ments in property, expense for the Stockholms Stadshus AB Group and investment should take place centrally. company also bought the Gyllene Ratten lease- with regard to West Stockholm’s future sewage plant and equipment amounted to SEK 1,340.7 million (3,006.4). hold right in Fruängen to build new housing. treatment. The project involves the closure of the of considerable value that are under con- Earnings for the year for the Stockholms Balance sheet Together, the two projects provide the opportuni- Bromma treatment plant, with the opportunity to struction but not yet Stadshus AB Group, as in recent years, mainly EQUITY/ASSETS RATIO ty for 270 apartments. build homes on the site instead. The waste water complete. comprise capital gains generated by the housing The equity/assets ratio shows equity in relation During the year, the City Council also is being channelled from Bromma to the Hen- companies from the sale of property portfolios to the balance-sheet total. Equity for the Munici- reached a strategic decision regarding Svenska riksdal treatment plant, which has been adapted and properties to tenant-owner associations. The pal Group increased by SEK 4,935.1 million and Bostäder’s Björnlandet Quarter project. The for the increased flow and rebuilt to withstand level of these sales was, however, lower than in amounts to SEK 99,641.6 million (94,706.5). project comprises around 150 apartments in Nor- the higher treatment volumes using bio-mem- previous years. The Stockholms Stadshus AB This change in equity can be attributed to earn- ra Djurgårdsstaden. Svenska Bostäder has also brane technology.

76 the city of stockholm’s annual report 2013 the city of stockholm’s annual report 2013 77 As part of the City’s work at Norra Group’s ability to honour both its long-term and the term of the loans in the debt portfolio. sheet date are hedging instruments designed to Djurgårdsstaden, Stockholms Hamn has worked short-term payment obligations and financial The City of Stockholm has chosen to have a hedge the interest rate and currency risk of the on the renovation of Värtahamnen. The port has commitments. The credit rating is performed unified central finance function – the internal bank Municipal Group’s debt portfolio. The portion a direct link to Norra Länken, Spårväg City and by the credit rating agency Standard & Poor’s, – which manages the aggregated risks, securing of the debt portfolio in foreign currency is con- the commercial centre in the Valparaiso quarter. which gives the Municipal Group the City of of financing, liquidity management, banking verted to SEK and a fixed Swedish interest rate During the year, the Ports of Stockholm complet- Stockholm the highest possible rating for both relationships, etc. Central management also means through derivatives. This provides predictability ed the renovation of Strömkajen. The moderni- short-term and long-term borrowing – A-1+ and a reduced financial risk with regard to interest rate with regard to currency risk and interest expens- sation of Kapellskär’s harbour also began during AAA respectively. The rating is updated annually risk, financing risk, credit risk, operational risk es, which also makes the Municipal Group’s the year. Work to expand the port in Nynäshamn and was confirmed on 6 December 2013. For The Municipal etc. and allows for better internal control. operational planning more manageable. The bor- and Stockholm-Norvik is continuing. Protracted investors, this rating means that lending money Group has a very The risks are monitored continuously by a rowing analysis uses amounts, including hedging permission processes are delaying the project to the City of Stockholm comes with a very low risk control department and are reported to the with derivatives, in line with hedge accounting, further, which means that construction cannot risk. This enables the Municipal Group to contin- high credit rating. City Executive Board. unless otherwise indicated. Outstanding deriva- start until 2014 at the earliest. ue to obtain favourable lending terms. For investors, this tives include futures and swaps. To help reduce car traffic in the inner city, rating means that Municipal Group borrowing The Municipal Group’s external debt portfo- Stockholm Parkering has created two new park Finance policy sets the framework lending money As at 31 December 2013, the City of Stockholm lio had an average interest rate of 2.54 percent, and ride facilities, one in Åregaraget in Välling- The finance policy sets out the objectives and to the City of Municipal Group had an external debt portfolio including interest rate hedges, and interest by City and one at the Globen underground guidelines for financing operations within the Stockholm comes amounting to SEK 18,441.3 million (15,290.7). expenses for the year are SEK 453.5 million. The station. Municipal Group and identifies the financial The external debt portfolio increased by SEK average fixed-rate period for the external debt SGA Fastigheter was responsible for the risks to which it is exposed and how they should with a very low 3,150.6 million during the year. The increase in portfolio is 2.2 years. biggest project during the year, the Tele2 Arena, be managed. risk. the debt portfolio is due to a continued high level which opened in August. Efforts to complete the Risks associated with the City’s financial op- of investment within the Municipal Group. The Loan planning and backup venue continued through the autumn, with the final erations relate primarily to credit and market risk. investments consist primarily of the construction The basis for sound loan planning is good handover from the contractor expected to take There are also other risks, such as liquidity risk, of more housing, public facilities and infrastruc- forecasts of the Group’s cash flows. The com- place in spring 2014. The entertainment destina- financing risk and operating risks. Credit risk is ture projects. The net debt portfolio for the Mu- panies and administrations that invest the most tion, Tolv Stockholm, located beneath the Tele2 the risk of a counterparty being unable to honour nicipal Group, i.e. gross debt minus investments, in the Municipal Group prepare both short and Arena and car park, opened in the autumn of 2013. its payment obligations to the Municipal Group. amounted to SEK 16,752.5 million (13,483.9). long-term forecasts of their cash flows. These Credit risk is measured based on the credit rating Debt management for the Municipal Group is forecasts are essential for ensuring that the Financial operations of the counterparty or instrument. Market risk is managed using two portfolios. A short-term debt borrowing and investment are done at favourable The Municipal Group’s borrowing needs are defined as the risk of interest rate, exchange rate portfolio, with maturities of up to five years, interest rate levels and maturities. met through central borrowing. All external loan and price fluctuations, resulting in an unfavour- primarily manages internal and external flows for The Municipal Group primarily borrows financing and investment are managed centrally able change in the value of assets and liabilities. the Municipal Group. A small percentage of the funds directly from the financial markets through by the City of Stockholm’s internal bank. The Interest rate risk is expressed as the target duration debt management (4.3 percent) is comprised of various market programmes. This is done through internal bank is responsible for supporting the with a permitted deviation interval and a defined a long-term debt portfolio with maturities of be- certificates (short-term loans) and bonds (long- core activities and safeguarding economies interest rate maturity structure. Financing risk is tween five and ten years, to handle the Municipal term loans) issued by the City of Stockholm. The of scale within financial management. This is the risk of being unable to refinance at maturity, Group’s long-term borrowing. market programmes and utilised share as at 31 achieved by way of, for example, a Group-wide or only being able to borrow at a significantly The Municipal Group has an effective debt December 2013 are set out in the table below. account system, which allows all cash flows to higher cost. Financing risk is managed, as far as is management within the framework that exists in In addition to loans via the market pro- be netted before the municipality needs to turn to possible based on market conditions, by spreading accordance with the established finance policy. grammes, borrowing takes place from the Euro- the financial markets. In this way, the administra- capital maturities over time and through a defined To achieve this, the City of Stockholm borrows pean Investment Bank (EIB) via the established tion of the internal cash flows are reduced while capital maturity structure. The City of Stock- at both fixed and variable interest rates on the borrowing limits for the City’s co-financing of benefiting from lower overall financing costs. holm may use derivatives to minimise the risk of domestic and international loan markets. The City both Norra Länken and Citybanan. The city has The Municipal Group has a very high credit unexpectedly higher interest expenses caused by of Stockholm also works actively to manage the SEK 1,000 million and SEK 1,200 million out- rating. This rating should reflect the Municipal interest rate and exchange rate fluctuations during maturity structure and works with various coun- standing via the borrowing framework for Norra terparties, resulting in a reduced refinancing risk. Länken and Citybanan respectively. Maturity structure of borrowing on 31 December 2013 As at 31 December, currency and interest The Municipal Group has extra financing rate derivatives amount to a total nominal gross backup in the form of an overdraft facility of SEK amount of SEK 7,526.4 million after hedged 3,000 million and a credit facility in the form of a rates. In accordance with the finance policy, SEK 2,500 million syndicated loan. The syndicat- Economic and financialEconomic analysis derivatives are entered into so as to manage the ed loan is provided according to an agreement for and financialEconomic analysis resulting interest rate and currency risk. All de- SEK 2,500 million from 27 November 2013, ris- rivative instruments outstanding on the balance ing to SEK 5,000 million as of 28 February 2014.

Market programme Programme size, Utilised, local Utilised, SEK local currency currency *

Municipality Certificates, MC, SEK million 12,000 0 0 Euro Commercial Paper, ECP, USD million 1,500 0 0 Medium Term Note, MTN, SEK million 10,000 3,900 3,900 Euro Medium Term Note, EMTN, EUR million 5,000 1,357 12,196

year years years years years years years years years years years Distribution of due dates on loans * Exchange rates after hedging.

78 the city of stockholm’s annual report 2013 the city of stockholm’s annual report 2013 79 Allocation to RUR City SEK million 31 Dec 2013 31 Dec 2012 Balanced-budget requirement performance before RUR 2,286.4 2,317.7 Less 1 percent of tax income and general government -359.8 -349.0 grants Less dividend in accordance with Swedish Municipal -1,900.0 -670.0 Housing Companies Act, SFS 2010:879 Total possible allocation to RUR 26.6 1,298.7 Allocation to RUR 0.0 0.0

Operating income holm evidences the same trend as the rest of the Operating income amounts to SEK 9,695.3 mil- country in terms of an increase in short-term sick lion (9,602.3), an increase of SEK 93.0 million leave, days 2-14. In Stockholm, the increase was or 1.0 percent on the previous year. Income from primarily during the first six months of 2013, tariffs and fees has increased, partly due to a while the increase in sick pay expenses during change in the waste collection operation tariff. the second half of the year is roughly equivalent An increased number of children in pre-schools to the wage increase.

PHOTO: LIESELOTTE VAN DER MEIJS VAN LIESELOTTE PHOTO: and care for school children also provides higher tariff income, as does a greater number of plan- External providers ABOUT THE CITY ning and building permits. Government grants The cost of external providers amounts to SEK for accepting refugees and for projects relating to 16.1 billion (15.4) – an increase of 4.5 percent. Surplus for the year After using provisions from previous years elderly care have increased. In the operational area of care for the The surplus for the year, after tax income and and provisions for the year, earnings for the elderly, over 60 percent of operations are car- net financial income/expense amounts to SEK year (change in equity) amount to SEK 3,444.4 Operating costs ried out by external contractors, while for the 3,597.7 million (2,617.3). In total, tax income, million (3,037.3). The surplus adjusted in accor- The operation’s costs, excluding operational areas covering care for people with including general government grants and equal- dance with the Local Government Act require- depreciation, amount to SEK 44,502.4 million disabilities, upper secondary school education, isation compensation, increased by SEK 1,077.6 ment show that the City is fulfilling the require- (43,275.8), an increase of SEK 1,226.6 million infrastructure and public enterprise, half or million. Capital gains amounts to SEK 1,056.9 ment for a balanced budget as there is a surplus or 2.8 percent (2.1). A population increase of more than half of the operations are placed with million. As in 2012, it has not been necessary of SEK 2,286.4 million (2,317.7). +93 over 16,400 people has necessitated an expan- external contractors. This means that over a third to pay premiums for a group sickness insurance Operating in- sion in services. The low inflation rate in 2013 of the City’s total costs are made up of contrac- agreement and waiver of contribution insurance. Change in equity for the year come amounts (0.1 percent compared to December 2012) is tor expenses – roughly the same as the City’s In addition, there is a refund of the premiums for As of the 2013 annual financial statements, the to SEK 9,695.3 holding back cost increases. personnel costs. 2005 and 2006 amounting to SEK 511.0 million. City is able to allocate surpluses to the surplus million, an A change in the discount rate for calculating the equalisation reserves, which can be used over an Personnel costs Grants and transfers pension provision has had a negative impact on economic cycle. In connection with the second increase of SEK Personnel costs increased by 2.8 percent in The cost of grants and transfers amounts to SEK earnings amounting to SEK 414.7 million. four-month report, the City Council adopted 93.0 million or 2013. The change is primarily attributable to 2,237.1 million (2,203.6), which is an increase A non-budgeted dividend from AB Fortum guidelines for the provision for and utilisation of 1.0 percent on the pay review for the year. Salary expenses, of 1.5 percent on the previous year. Financial as- Värme Holding and surpluses within the Com- a surplus equalisation reserve. A surplus equali- the previous excluding employer’s contributions, increased sistance has fallen as in 2012, amounting to SEK mittees’ operations also contribute to earnings. A sation reserve prepares the City to be able to deal year. by 3.2 percent. There has been an increase in 970.0 million (982.7) in 2013. Over a 12-month dividend payment of SEK 1,900.0 million from with fluctuations in the economic cycle, so that the proportion of staff under the age of 26 and perspective the number of households receiving Stockholms Stadshus AB followed, in accor- temporary declines in tax income can be regu- over the age of 65. The premium for the group financial assistance was 1.0 percent lower in dance with § 5:1 of the new Act on Public Utility lated using funds from the surplus equalisation sickness insurance agreement, which is included December 2013 than in December 2012. There Municipal Limited Liability Housing Compa- reserve and thus not affect operations. For 2013, in personnel costs, was discontinued in 2013 as were 9,980 households receiving financial assis- nies. The budgeted dividend from Stockholms the City has chosen to use part of the surplus as in 2012 owing to previous over-levying of fees. tance in December (10,075 in December 2012), Stadshus AB of SEK 900 million has not been a provision for the co-financing of infrastruc- In December, the number of full-time equiv- with 50 percent of the adult recipients of finan- claimed, in accordance with a decision by the ture in accordance with the year’s Stockholm alent employees amounted to 37,831 (38,059). cial assistance being unemployed (49). The num- Economic and financialEconomic analysis City Council in connection with the second four- Negotiations; hence only a marginal capacity for This is a decrease of 228 full-time equivalent ber of households receiving financial assistance and financialEconomic analysis month report. provision for RUR remains and no provision is employees or 0.6 percent compared to December increased in the latter part of 2013. The cost of therefore made. last year. The decrese has occured within care municipal child care grants amounts to SEK 22.0 for the elderly as well as support and services million. During the year, 1,551 people claimed for people with disabilities. There has been a payment via child care grants, a decrease of 502 Surplus as at 31 December, SEK million transfer of operations within recreation and people on 2012. The costs of compensation for 2013 2012 2011 2010 2009 culture with the inclusion of Kulturhuset in the personal care assistance have increased by SEK Surplus after tax income and net financial 3,597.7 2,617.3 1,136.8 1,761.9 1,210.5 Stadsteater. There has been a continued increase 24.0 million to SEK 370.0 million. income/expense within pre-school operations and care for school Result of change in equity 3,444.4 3,037.3 881.3 947.7 120.4 children as a result of an increased number of Balanced-budget requirement performance 2,286.4 2,317.7 678.7 342.7 8.7 for the year pre-school aged children. Sick leave expenses increased by 6.6 percent during the year. Stock-

80 the city of stockholm’s annual report 2013 the city of stockholm’s annual report 2013 81 82 Economic and financial analysis the affecting comparability. million, whichhasbeenmoved to financialincome 1 Thevalue for 2012 hasbeencorrected by SEK12.5 amounts toSEK1,546.6million(1,279.6 Income affecting comparabilityfor2013 comparability Items affecting of achangeinthedemographics ofthepopula fallen bySEK35.2million,partlyasaresult has decreased. increase intaxincomeandthecosts Compared with2012,themargin betweenthe including depreciation,of2.9percent(2.4). percent (3.2)comparedtoanincreaseincosts, equalisation compensationhasincreasedby3.1 income fromtaxation,governmentgrantsand ed atSEK111.7 million(722.3). The City’s total government grantsandequalisationareestimat of 4.9percentdespiteaweakeconomy. General 35,866.6 million(34,178.4),whichisanincrease Tax incomefortheyearisestimatedatSEK compensation Tax, government grants and equalisation is nowinvestedonanannualbasis. volume inrecentyears.MorethanSEK4billion tion of8.9percentisduetoahigherinvestment vain. The strongincreaseinplanned deprecia- to SEK20.8million,primarilydueprojectsin and equipmenttoSEK20.1milliondisposals (806.6), impairmentofthevalueproperty, plant according toplanamountsSEK878.0million an increaseofSEK43.8million.Depreciation the yearamountstoSEK918.9million(875.1), Depreciation ofproperty, plant andequipmentfor Depreciation 2002, 2006,2010,2011 and2012. in accordancewithCityCouncilresolutions been financedthroughpreviousyears’ surpluses 37.4 millionforIT investment. These costshave 0.6 millionforthecompetencefundandSEK 46.8 millionforthee-serviceprogramme,SEK in fundsusedforouterdistrictinvestment,SEK affecting comparabilityareSEK87.0million amount toSEK48.7million(17.2).Othercosts Capital lossesfromthesaleofpropertyandland sale ofleaseholdland,mainlyinHagastaden. outside theCitylimitsandremainderto remaining amountrelatingtothesaleofproperty amounting toSEK241.6million,withhalfofthe gains fromthesaleofdevelopmentproperties to SEK1,035.6million. This includescapital million andcapitalgainsfromsalesamounting paid in2005and2006amountingtoSEK511.0 refund ofpremiumsforinsuranceagreements 220.6 million(182.1). The incomerelatestothe costs affecting comparabilityamounttoSEK city The contributionfromcostequalisationhas of stockholm ’ s annual report 2013 1 ) and - - amounting toSEK403.6million(397.6). The million. ed netfinancialincome/expensebySEK24.9 Mässfastigheter iStockholm AB haveaffect- properties andthesaleofshareholdingin in 2013.Capitalgainsrelatingtotenant-owner rates inthecommunity, whichwasverylow The RIPSrateisregulatedbythelevelofinterest balance sheetandforthecontingentliability. for theelementofdebtrecognisedin which resultsinagreaterchangedebt,both the RIPSrate. This isreducedby0.75percent, rate usedtodiscountthepensionprovision– million attributabletoachangeintheinterest an itemaffecting comparabilityofSEK414.7 as of2013. SEK 670millionamountsto184.8 The utilisationofdividendpaidin2012totalling was usedforprojectsthatmeetthesecriteria. special responsibility. In2013,SEK41.9million needs ofpeopleforwhomthemunicipalityhasa and socialcohesionand/orsatisfiesthehousing provision responsibilitythatpromotesintegration at theelementofmunicipality’s housing dividend ofSEK1,900.0million. This istargeted nies, StockholmsStadshus AB haspaidashare Municipal LimitedLiabilityHousingCompa In accordancewiththenew Act onPublicUtility is adividendfrom AB Fortum Värme Holding. million (1,167.7 nancial income/expenseamountstoSEK2,019.4 financial incomeandexpenses. TheCity’s netfi- interest income/expensefortheCityplusother Net financialincome/expenseincludesthenet Financial income and expenses increased. of Stockholm’s feeforLSSequalisationhas receives areducedincomeasresult. The City holm, withalarge proportionofapartments, charge. A municipalityliketheCityofStock associated withareductionintherentalproperty charges hasfallenbySEK60.4million,whichis charges. Incomefrommunicipalproperty ary schoolreformandtheincreaseinproperty in 2012asaresultofthenewuppersecond compensated, forexample,thesavingsmade SEK 23.6million,despitetheCityhavingbeen Adjustment contributionshavedecreasedby increased comparedtoSwedenasawhole. because thetaxablecapacityinStockholmhas tion. The incomeequalisationcharge ishigher rability. comparability to financialincome affecting compa- million, whichhasbeenmoved from incomeaffecting 2 Thevalue for 2012 hasbeencorrected by SEK12.5 Net interestincomefortheCityispositive, Net financialincome/expenseisaffected by 2 ), ofwhichSEK200.0million - - - 4.9% economy. despite aweak of 4.9 percent increase an is which million, SEK at 35,866.6 estimated are for the year Tax income need forcashandequivalents. rate. Cashflowvariesaccordingtotheassessed and thelevelisaffected bythecurrentinterest cash equivalentsreducetheneedforborrowing amounts toSEK258.5million. The cashand Total cashflowfortheyearisnegativeand Cash flow statement comply withapplicableregulations. total SEK8,126.8million. Plan. At theendofyearprovisionsthereby highway, theCitybananrailwayandLindhagens to SEK281.5millionwereutilisedfortheE18 Science City. Infrastructuregrantsamounting operations andSEK2.6millionforStockholm’s ly care,SEK24.0millionforwastecollection ties, SEK13.6millionfortheexpansionofelder investments inmeasuresforpeoplewithdisabili the areaofhomelessness,SEK3.8millionfor SEK 8.2millionforevidence-basedprojectsin school expansion,amountingtoSEK8.8million, aside. amounting toSEK15.9millionhavebeenset ments. EarningsfortheCemeteriesCommittee by SEK480milliontocoverfuturecommit nections. This provisionhasnowbeenincreased were setasidefortheco-financingofrailcon with theStockholmNegotiationsin2009,funds SEK 2,950millioninfixedprices.Inconnection of theexpansionunderground amountsto of Stockholm’s commitmenttotheco-financing and increasedhousingdevelopment. The City sion oftheunderground networkintheregion Municipality ofJärfällaconcerningtheexpan Municipality ofNacka,theCitySolnaand County Council,theCityofStockholm, in 2013betweentheSwedishgovernment, million. The StockholmNegotiationstookplace Provisions fortheyearamounttoSEK495.9 provisionsOther RIPS rate. to thechangeattributablereductionin which amountstoSEK94.7million,inaddition index-linking thepensionprovisionforyear, nancial incomeandexpensesincludesthecostof down despiteanincreaseinborrowing.Netfi The lowinterestratelevelhaskeptcosts rowing, includingcompensationforoverheads. City managestheGroup’s interest-basedbor for theyearandincreasedpension provision, change comparedtolastyearisdue toearnings to SEK4,475.2million(3,343.5). This major for example.Cashflowfromoperations amounts ity intheformofdepreciationand provisions, and the reversal of items that do not affect liquid ings fortheyear, excludingcapitalgains/losses, Cash flowfromtheoperationcomprisesearn All oftheCity’s provisionsaredeemedto Other provisionshavebeenutilisedforpre------year duetotheplannedsaleofthese properties. fixed tocurrentassetshastaken placeduringthe reclassification ofdevelopment properties from for themajorityoffunds. A SEK786.0million with thebuildingofnewSlussen accounting den asthelargest object,andinfrastructure, primarily inhousingconstruction,withHagasta by SEK-293.8million.Investmentsaremade investment volumehasdecreasedsomewhat 243.1 million.Incomparisonwithlastyear, the million andthecarryingamountforsalestoSEK amortisation andimpairmentstoSEK918.9 amount toSEK4,271.6million,depreciation/ property, plantandequipment.Investments (60,016.3). The increasecanbeattributedto 2,327.6 milliontototalSEK62,343.8 Tutal non-currentassetshaveincreasedbySEK Assets for borrowingingeneral. the operations. The resulthasreducedtheneed investment expenditureiscoveredbyfundsfrom increased bySEK3,171.3million. The City’s ments, short-termandlong-termborrowinghave lion. To meetthecompanies’ borrowingrequire- properties haveincreasedbySEK3,113.8 mil property, plantandequipment,development creased bySEK5,708.5million,whiletheCity’s Net receivablesfromthecompanieshavein City’s companiesisadministratedbytheCity. (103,225.6). Borrowingandinvestmentforthe SEK 9,552.9millionto112,808.5 million The City’s balance-sheettotalhasincreasedby Balance sheet during theyear. million. These haveincreasedbySEK2,241.3 interest-bearing assetsamounttoSEK13,038.2 ers theCity’s owninvestmentexpenditure.Net ments. Cashflowfromoperatingactivitiescov ties tocoverthecompanies’ borrowingrequire- cash flowofSEK-281.5million. infrastructure hashadannegativeeffect onthe SEK 4billion.Paymentofcontributionstostate to theincreasedinvestmentvolumeofmorethan activities isnegative,SEK-3,021.9million,due borrowing. CashflowfromtheCity’s investing decreased, whichhasincreasedtheneedfor during theyear, whilethesalesvolumehas The companieshavemademajorinvestments greater short-termborrowingthanpreviously. to SEK5,708.5million,whichwereoffset by net receivablesfromthecompaniesamounting is negative,SEK-3,072.2million,duetohigher to theCity’s companies. The changefortheyear ily onthechangeinreceivablesfrom/liabilities ables/liabilities andinventoriesdependsprimar which dependsonthechangeinRIPSrate. The Cityhasincreaseditsnon-currentliabili Cash flowfromthechangeincurrentreceiv - - the - - - - - city of stockholm ’ s annual report 2013 83 Economic and financial analysis Investment income is recognised gross, in the due to the use of liquidity in the companies with- Leases continues. As per last year, investment expendi- form of fees and contributions, on capitalisation, in the Group to reduce the external borrowing The value of the City’s future commitments for ture for the urban development areas in Hagasta- so that income is entered as a liability and taken requirement. The final statement for the City’s operating leases amounts to SEK 6,672.5 million den, Norra Djurgårdsstaden, Hammarby sjöstad up as income as the facility in question is used. tax income in 2013 is estimated to be negative, in the financial statements for 2013, of which and Nordvästra Kungsholmen amounts like last Investment income for 2013 amounts to SEK resulting in a current liability. The holiday pay 63% (SEK 4,186.0 million) relates to agreements year to a total of SEK 1,360.0 million. Major 13.5 million (SEK 39.7 million in 2012). liability has increased comparatively sharply. with the City’s companies. Nearly all leases projects that include housing are also in progress relate to leases for premises. Agreements with in Sabbatsberg and Älvsjö, for example. Current assets Equity/assets ratio external landlords are spread over a considerable The City’s largest infrastructure project is Current assets have increased by SEK 7,225.3 The equity/assets ratio shows equity in relation to number of landlords, resulting in a low level of the demolition and reconstruction of Slussen. million and amount to SEK 50,464.7 million the balance-sheet total. The indicator is reported risk. Only non-cancellable leases with a term of In September 2013, the Land and Environment (43,239.4). The main change is the increased including the City’s contingent liabilities regard- more than three years are recognised. The agree- Court approved the local development plan for borrowing requirement of the companies due to ing pension commitments. On 31 December 2013 Several ments with Skolfastigheter i Stockholm AB are Slussen. Preparatory works primarily in the form the continued high investment volume, primar- the equity/assets ratio amounted to 34.0 percent cancellable and are not recognised. Agreements of pipe diversions have been contracted and reinvestment ily relating to housing. The City’s receivables (34.7). The decrease compared to the previous with Micasa Fastigheter i Stockholm AB are can- work has been underway since early 2013. from companies increased by SEK 7,138.5 year is due in part to an increased balance-sheet programmes cellable, but at a substantial cost to the City, and The renovation of Sergels Torg sealing million during the year. Development properties total, which largely stems from an increase in with the aim of so it was deemed that they should be recognised. layer began in November 2012. During the first increased to SEK 2,616.0 million (1,830.0). At receivables from the City’s companies. Equity safeguarding phase of the project, around 25 percent of the the end of the year, the City utilised its overdraft amounts to SEK 56,632.8 million, equivalent to the operation Sales total surface was treated. Several reinvestment facility, whereby the City’s cash and cash equiv- approximately SEK 63,175 per resident (SEK of the City’s The City’s income from the sale of property, programmes, with the aim of safeguarding the alents consisted solely of advance funds and 42,727 including contingent liability). plant and equipment during the year amounts to operation of the City’s infrastructure, are in infrastructure similar funds with cash. The City’s cash and cash SEK 1,217.2 million, which results in a capital progress. The Swedish Transport Administra- equivalents amount to SEK 4.8 million (128.3), Pensions are in progress. gain for the City of SEK 1,035.6 million. The tion has decided that Norra Länken will open to which is a reduction of SEK 123.6 million. The Pension provisions are recognised in the balance sales relate to property sales, redemption of traffic in the winter of 2014/2015, i.e. one year cash and cash equivalents reduce the need for sheet at a total of SEK 4,889.7 million, includ- leasehold land and sales related to development. earlier than originally planned. More work than borrowing and the level is affected by the current ing special tax on employment income. During The redemption of leasehold land has resulted in had been planned also took place on the City’s interest rate. the period, pension provisions increased by sales income of SEK 499 million for the City, of investment in the Hjorthagen junction. SEK 690.1 million, largely due to the change which SEK 305 million relates to Hagastaden. Work to develop and make Hötorgshallen Equity and liabilities in the RIPS rate decided in 2013. The pension Property sales as a result of development oper- more energy efficient was completed in early Equity increased by SEK 3,444.4 million to provision is calculated based on the guidelines ations have resulted in sales income of approxi- 2013. The hall reopened in April 2013. Engel- SEK 56,632.8 million (53,188.4) as a result of of the Swedish Association of Local Authorities mately SEK 254.9 million. brektshallen and Stora Mossen sports hall were earnings for the year. In accordance with the City and Regions, RIPS07. The basis for the calcu- completed during the year. Engelbrektshallen is Council’s decisions in 2002, 2006, 2010, 2011 lations is the KAP-KL pension agreement. The Investments in the City a full-sized sports hall built underground, while and 2012 regarding the appropriation of equity, agreement was replaced by the new AKAP-KL The City’s investments in 2013 amount to SEK Stora Mossen sports hall was built within the a total of SEK 171.9 million was appropriated agreement on 1 January 2014 for employees 4,271.6 million (4,565.4), which is lower than in framework of the “simpler sports halls” concept. Deviation from the budget is, in many cases, A number of major during the year. This has been recognised under born in 1986 onwards. The effects of the change the previous year, but approximately SEK 400.0 projects with implemen- costs affecting comparability. in debt and pension fees are initially expected million higher than in 2011. Investment income due to time delays in the investment projects, tation decisions that Non-current liabilities have increased by to be marginal. Local pension rules, in addition for the year amounted to SEK 13.5 million (39.7). whose construction spans a number of calendar continued during the years. It will only be possible to measure the year are presented in SEK 1,639.5 million to SEK 15,587.3 million to the municipal pension agreement, have been The City’s investment in housing construction the table below (net of (13,947.8). Bond loans and promissory note included in the pension provision. charges, SEK million). loans have been taken out to meet the compa- The pension provision earned up to and nies’ increased borrowing requirements. Loans including 1997 constitutes a contingent liability Projects with implementation decisions which fall due for payment within one year are in the City’s financial statements and amounts to classified as short-term loans. The proportion SEK 18,330.4 million, including a special tax on Project name Refers to Budget 2013 Outcome 2013 Deviation of long-term loans has increased in relation to employment income. This portion of the pension Hagastaden Housing -173.1 -646.6 -473.5 short-term borrowing. (See the section on finance provision is recognised as a contingent liability Hammarby sjöstad Housing -108.1 -110.2 -2.1 policy for a more detailed analysis.) Long-term in accordance with the rules of the so-called Norra Djurgårdsstaden Housing -764.6 -470.4 294.2 loans include the City of Stockholm’s commit- mixed model. This means that part of the City’s Nordvästra Kungsholmen Housing -122.7 -133.5 -10.8 ment to the energy project Stockholm Ström, to- liabilities is not recognised in the balance sheet, Sabbatsberg Housing -45.0 -52.3 -7.3 Economic and financialEconomic analysis tal SEK 656.2 million. A payment to the project which therefore portrays a more positive picture Älvsjö Centrum Housing -28.9 -46.8 -17.9 and financialEconomic analysis of SEK 258.0 million in 2014 is classified as a of the financial position. Pension provisions Slussen Infrastructure -413.5 -428.2 -14.7 current liability. earned up to and including 1997 have increased Sergels torg, renovation of sealing layer Infrastructure -140.0 -132.1 7.9 Current liabilities increased by SEK 3,625.6 by SEK 1,007.6 million compared to 2012. Norra Länken: Hjorthagen junction Infrastructure -95.7 -118.4 -22.7 million to SEK 26,893.2 million (23,267.6). The The decreased discount rate also has an impact Reinvestment programme: street surfacing, lighting and traffic Infrastructure -147.0 -175.3 -28.3 City’s borrowing requirement has been covered here, resulting in a higher increase in pension signals through long-term borrowing and to a lesser provisions during the year. The accrued pension Energy efficiency measures Property -86.1 -91.3 -5.2 extent through commercial paper loans, which fees and accrued tax on employment income are Hötorgshallen, development Property -41.5 -12.6 28.9 decreased by SEK 1.3 billion. In contrast, the recognised as current liabilities and amount to a Engelbrektshallen, new sports hall Sport -50.2 -39.6 10.6 current portion of long-term borrowing increased total of SEK 724.3 million. Stora Mossen, new sports hall Sport -40.0 -44.0 -4.0 by SEK 2.5 billion. The City’s liabilities to Skogskyrkogården, new crematorium Crematorium -59.4 -46.4 13.0 Group companies have risen by SEK 1.4 billion

84 the city of stockholm’s annual report 2013 the city of stockholm’s annual report 2013 85 Work to develop and make Hötorgshallen more energy efficient was completed in early 2013. PHOTO: ANNE LINTALA PHOTO:

outcome of the projects once they have been ments for the City’s majority-owned companies completed and a final report has been made. and certain foundations. The majority of these Deviations are partly due to planning process- pension commitments have been extended to S:t es, including appeals, often taking longer than Erik Livförsäkring AB. The overall risk of the expected. The budget deviation for Hagastaden City’s guarantees is deemed to be low. is largely explained through the change in the forms of budgeting the project during the year. Transparency Directive During 2013, the City paid over SEK 280.0 The Swedish Act on Transparency for Cer- million to co-finance the Citybanan state infra- tain Financial Obligations etc. places certain structure project, the reconstruction of the E18 requirements on accounting in publicly owned highway and the Lindhagensgatan junction. companies by way of requiring open, separate The Stockholm Negotiations for 2013 were accounting. The aim of the act is to implement concluded in December. The City’s commitment the European Commission’s Directive 08/723/ to co-finance the expansion of the underground EEC in Swedish law (Transparency Directive) to amounts, as agreed, to SEK 2,950.0 million at counteract unfair competition. 2013 price levels. The act applies to publicly-owned companies The new law on public municipal housing where the government, municipalities or county companies has given the City the opportunity councils have a direct or indirect controlling to finance projects within the framework of interest through ownership, financial involve- the City’s responsibility to provide housing ment or the rules that apply for the company. by way of a special dividend. These projects Economic or commercial operations carried out will include measures that promote integration in the form of administration are also covered by and social cohesion. This dividend amounted the concept. to SEK 1,900.0 million in 2013. The dividend Under the provisions of the Act, publicly-run has been earmarked for projects within the City companies with an annual net turnover in excess Council’s long-term visions for Järvalyftet and of EUR 40 million during each of the past two Vision Söderort, as well as for financing projects fiscal years shall apply these rules on transparent in other priority suburban areas. Many of the accounting. projects for which funds have been earmarked The companies covered by the Directive and are currently in the planning phase. The need for the obligation to supply information are Stock- financing will increase in the coming years as the holms Hamn AB, STOKAB and Stockholms projects are implemented. In 2013, SEK 133.9 Stads Parkerings AB. Financial operations within million was utilised to finance the implementa- the City are carried out by the accounting and fi- Economic and financialEconomic analysis tion of projects including Rinkebyterassen and nancial strategy unit, the City Executive Office’s and financialEconomic analysis the Rinkebystråket thoroughfare within Järvaly- Finance Department. All lending and borrow- ftet, and the Johannelund housing project near ing to and by the City’s companies take place Lövstavägen in the west. through this unit. All companies are offered loans and investments on terms equivalent to the Contingent liabilities and guarantees Municipal Group’s external financing cost with a The City’s commitments regarding contingent margin for any compensation for overheads. No liabilities and guarantees amount to SEK 792.9 capital injections, straight loans or loss-covering million, a reduction of SEK 19.4 million. The grants are provided. guarantees refer partly to non-profit organisa- tions, as well as foundations and companies.

The City has also guaranteed pension commit- FREDRIK PERSSON PHOTO:

86 the city of stockholm’s annual report 2013 the city of stockholm’s annual report 2013 87 INCOME STATEMENT CITY MUNICIPAL GROUP BALANCE SHEET CITY MUNICIPAL GROUP

SEK million Note 31 Dec 2013 31 Dec 2012 31 Dec 2013 31 Dec 2012 SEK million Note 31 Dec 2013 31 Dec 2012 31 Dec 2013 31 Dec 2012

Operating income 1 9,695.3 9,602.3 19,645.1 20,181.6 ASSETS Income affecting comparability 2 1,546.6 1,279.6 2,134.7 3,622.8 Operating costs 3 -44,502.4 -43,275.8 -50,367.9 -50,013.7 Intangible assets Costs affecting comparability 4 -220.6 -182.1 -185.0 -193.1 Intangible assets 24 - - 73.0 94.5 Depreciation/amortisation 5 -918.9 -875.1 -3,455.6 -3,297.5 Total intangible assets - - 73.0 94.5 Net operating costs -34,400.0 -33,451.2 -32,228.7 -29,700.0 Property, plant and equipment Tax income 6 35,866.6 34,178.4 35,866.6 34,178.4 Land, buildings and plant 25 50,773.8 48,380.4 113,681.9 107,295.3 General government grants and equalisation 7 111.7 722.3 111.7 722.3 Machinery and equipment 26 484.2 457.3 6,552.5 6,639.8 Surplus from participations in associates - - 106.3 153.5 Construction, extension and conversion work in progress 27 5,503.9 5,596.3 16,647.4 15,262.5 Financial income 8 3,283.4 2,025.1 78.2 256.4 9 24.9 12.5 - - Total property, plant and equipment 56,761.9 54,434.1 136,881.8 129,197.6 Financial expenses 10 -874.2 -869.9 -573.4 - 687.7 Financial assets Financial expenses affecting comparability 11 -414.7 0.0 -414.7 0.0 Shares and participations 28 3,880.7 3,879.8 2,320.0 2,356.3 Surplus after tax income and net financial income/expense 3,597.7 2,617.3 2,945.9 4,923.0 Proportion of equity in associates - - 835.6 944.2 Provisions utilised from previous years 12 342.6 426.4 342.6 426.4 Non-current receivables 29 1,701.3 1,702.4 2,187.7 1,998.1 Provisions 12 -495.9 -6.4 -495.9 -6.4 Total financial assets 5,582.0 5,582.2 5,343.3 5,298.6 Tax 13 - - -287.6 -506.3 Non-controlling interest share in surplus for the year - - -3.0 -8.4 Total non-current assets 62,343.8 60,016.3 142,298.0 134,590.7

Surplus for the year 3,444.4 3,037.3 2,502.0 4,828.2 Current assets Less: Income affecting comparability -1,571.5 -1,292.1 - - Development properties 30 2,616.0 1,830.0 2,616.0 1,830.0 Plus: Sales income in accordance with exclusion option 241.6 407.6 - - Inventories and work in progress 31 4.0 8.1 42.5 45.6 Surplus for the year in accordance with balanced-budget 2,114.6 2,152.8 - - Current receivables 32 47,803.6 41,231.1 4,680.4 4,008.8 requirement before extraordinary circumstances Short-term lending 33 0.8 0.8 0.8 0.8 Less costs in accordance with extraordinary circumstances chapter 8, section 14 171.9 164.9 - - Investments in securities etc. 34 35.5 41.0 240.4 44.4 5b of Loc Gov. Act. Cash and bank balances 35 4.8 128.4 193.9 319.5 Surplus for the year in accordance with balanced-budget 15 2,286.4 2,317.7 - - Total current assets 50,464.7 43,239.4 7,774.0 6,249.1 requirement Total assets 112,808.5 103,255.6 150,072.0 140,839.8 CASH FLOWS STATEMENT CITY MUNICIPAL GROUP

SEK million Note 31 Dec 2013 31 Dec 2012 31 Dec 2013 31 Dec 2012 EQUITY AND LIABILITIES Equity 36, 37 OPERATING ACTIVITIES Surplus for the year in accordance with the income statement 3,444.4 3,037.3 2,502.0 4,828.2 Surplus for the year 3,444.4 3,037.3 2,502.0 4,828.2 Balanced-budget reserve 0.0 0.0 0.0 0.0 Reversal of capital gains/losses 16 -1,011.7 -767.6 -2,121.6 -3,594.6 Other equity 53,188.4 50,151.1 94,706.5 89,881.3 Adjustment for items not affecting liquidity 17 2,103.5 1,188.7 3,770.1 2,471.7 Dividend - - -0.1 -3.0 Decrease in provisions due to payments 18 -61.0 -114.9 - - Changes in accounting policies 2,433.1 -

Funds from operations before change in working capital 4,475.2 3,343.5 4,150.5 3,705.4 Total equity 56,632.8 53,188.4 99,641.6 94,706.5 Increase/decrease in current receivables - 6,567.1 -3,039.6 -1,098.3 1,857.1 Provisions Increase/decrease in stocks and inventories 4.2 1.1 3.1 2.0 Pensions and similar commitments 38 4,889.7 4,199.6 6,655.3 6,078.7 Increase/decrease in current liabilities 19 3,490.7 -2,567.7 2,518.5 -2,760.3 Deferred tax liability 1,767.8 1,868.3 Cash flow from operating activities 1,403.0 -2,262.7 5,573.8 2,804.1 Other provisions 39 8,805.5 8,652.2 8,910.2 8,664.2

PAYMENT OF CONTRIBUTIONS TO STATE INFRASTRUCTURE Total provisions 13,695.2 12,851.8 17,333.4 16,611.2

Payment of contributions to state infrastructure -281.5 -311.5 -281.5 -311.5 Non-controlling interest in equity 27.7 190.2

INVESTING ACTIVITIES Non-current liabilities Investment in intangible assets - - -4.8 -9.6 Bond loans 40 12,636.5 11,946.4 12,636.5 11,946.4 Sale of intangible assets - - 9.1 0.0 Promissory note loan 41 2,200.0 1,000.0 2,200.0 1,000.0 State loans - - - - Investment in property, plant and equipment 20 -4,276.5 -4,574.8 -12,151.9 -14,060.0 Investment grants 13.5 39.7 - - Other non-current liabilities 42 750.8 1,001.5 765.8 1,451.7 Sale of property, plant and equipment 21 1,217.2 892.6 3,249.9 5,614.2 Total non-current liabilities 15,587.3 13,947.8 15,602.3 14,398.1 Investment in financial assets -13.6 -26.3 -222.4 -301.9 Current liabilities Sale of financial assets 21 37.6 12.7 243.3 0.2 Other change in non-current assets - - - - Current liabilities 43 22,353.8 20,118.1 13,062.5 11,784.3 Short-term loans 44 3,774.8 2,493.6 3,639.9 2,493.6 Cash flow from investing activities -3,021.9 -3,656.0 -8,876.9 -8,757.0 City’s holiday pay liability etc. 45 764.7 655.9 764.7 655.9

FINANCING ACTIVITIES Total current liabilities 26,893.2 23,267.6 17,467.0 14,933.8 New loans 5,530.0 6,902.5 - - Total equity and liabilities 112,808.5 103,255.6 150,072.0 140,839.8 Amortisation of non-current liabilities 22 -1,150.2 -1,160.0 - - Increase/decrease in non-current liabilities -2,739.0 92.5 3,645.2 5,910.3 Pledged assets - - - 600.4 Increase/decrease in non-current receivables 1.1 1.1 -186.2 -22.4 Contingent liabilities and guarantees 46 792.9 812.3 836.5 847.8 Contingent liability incl. employer’s contribution 47 18,330.4 17,322.8 18,341.0 17,332.2 Cash flow from financing activities 1,641.9 5,836.1 3,459.0 5,887.9 Derivative instruments, market value 48 -288.0 -261.0 -288.0 -261.0 Cash flow for the year -258.5 -394.1 -125.6 -376.5 Lease agreements, operating leasing 49 6,672.5 478.8 6,672.5 478.8 Cash and cash equivalents at beginning of year 128.4 522.5 319.5 696.0 Cash and cash equivalents at end of period 23 -130.1 128.4 193.9 319.5 Share dividend 2012 remains, section 5:1 of the Act on Public Utility 50 485.2 576.3 Interest-bearing net assets/liabilities 13,038.2 10,796.9 -15,732.1 -12,742.6 Municipal Limited Liability Housing Companies Annual Financial Statements Financial Annual Annual Financial Statements Financial Annual Interest-bearing net assets/liabilities at beginning of year 10,796.9 10,999.2 -12,742.6 -9,712.1 Share dividend 2013 remains, section 5:1 of the Act on Public Utility 1,858.1 0.0 Municipal Limited Liability Housing Companies Interest-bearing net assets/liabilities at end of period 13,038.2 10,796.9 -15,732.1 -12,742.6

88 the city of stockholm’s annual report 2013 the city of stockholm’s annual report 2013 89 Accounting policies

Local Government Accounting Act Leases Items affecting comparability Receivables/liabilities from/to Group companies These financial statements have been prepared in accordance with In according with RKR’s recommendation no. 13.1 2006, “Ac- Capital gains and losses and non-recurring items that are not part The City manages borrowing and lending to and from the the Local Government Accounting Act (SFS 1997:614) and the counting for rental/lease agreements”, the City recognises forth- of the normal operation are recognised as items affecting com- municipal companies. The companies have an account in the recommendations of Rådet för kommunal redovisning (RKR – the coming lease contract expenses. Financial leases are recognised parability. In the 2013 financial year, the repayment of premiums City’s group structure with a few exceptions. Depending on the municipal financial reporting board). in the balance sheet. A materiality assessment has been conducted for insurance agreements paid in 2005 and 2006 is recognised balance, a receivable or liability is entered for the company in and agreements are only reported when the total expense exceeds as an item affecting comparability. In accordance with a City question. Depreciation/amortisation SEK 0.5 million or the annual expense exceeds SEK 0.2 million. Council decision, gains on sales in 2002 are used for measures to As a rule, the City applies straight-line depreciation/amortisation, Operational leases are recognised as memorandum items with the increase expertise within the framework of the competence fund, Consolidated accounting, general whereby an equal amount is depreciated/amortised each month same limits on amounts as for financial leases. The value of oper- and gains on sales in 2006 and 2010 are used for an e-service Under the Local Government Accounting Act, the City of for the asset’s useful life. Balance-adjusted depreciation is used ational leases increased in 2013 due to rental agreements, which programme and an investment in the outer districts. In the 2011 Stockholm’s annual and interim financial statements should also for supplementary investments where the supplementary invest- meet the City’s criteria for operational leases, being retrieved financial statements, gains from sales amounting to SEK 50 include operations conducted by other legal entities within the ment is depreciated at the same date as the original investment. from a database instead of manual reporting as of 2013. It is not million were used to allocate more funds to Vision Järva and Municipal Group and consolidated financial statements must be Assets such as art objects, for example, are written off without possible to reconstruct the comparable value for 2012. According Vision Söderort. Furthermore, SEK 550 million is being used for prepared. The aim of the compiled financial statements, which depreciation being carried out. Component depreciation is applied to the recommendation, leases should be recognised if the lease additional funding for operational development with the help of are the local government equivalent in Sweden of a corporation’s if necessitated by large differences in useful life within a facility. period is over three years. The City’s agreement on IT services IT. A further SEK 250 million was allocated to IT investments consolidated financial statements, is to provide a comprehensive The strict break-down of facilities into essential components will is mentioned in the note on operational leases, even though the in the 2012 financial statements. Measures in accordance with view of the operations and financial position of the City’s com- be introduced starting in 2014. The City has obtained guidance condition regarding the length of the lease has not been fulfilled, these decisions are recognised as items affecting comparability mittees, limited companies and joint authorities. from the RKR paper on impairment when it comes to assessing because this financial obligation is extensive. because they are a means of returning value to the City’s assets. The consolidated financial statements have been prepared in the useful life of assets. The aim of the City Council decisions is for measures within the accordance with RKR 8.2 on consolidated financial statements. In accordance with RKR recommendation 18, from 2010 Sale and purchase of non-current assets framework of the decisions not to influence the surplus/deficit The City’s committees have been consolidated in proportion investment income in the form of grants and fees is taken up as The principal rule regarding the sale and purchase of non-current for the year in accordance with the balanced-budget require- with the City’s directly and indirectly wholly and partly-owned income at the same rate that the investment is used. assets is that the transaction is entered on the day on which pos- ment, i.e. the City Council decisions presuppose that there are companies in which the City has at least a significant influence. session is taken. This principle changed in 2010. extraordinary circumstances regarding the calculation of the Differences in accounting policies between the companies Valuation principles balanced-budget requirement. and the City may arise due to differences in legislation and Non-current assets are recognised at cost. The acquisition value Borrowing costs The City has chosen to recognise the above items as items af- recommendations applied for the City and companies respective- includes costs of dismantling and removing the previous asset Borrowing costs are recognised in the period to which they are fecting comparability if they amount to at least SEK 0.1 million. ly. In the consolidated financial statements, effects of significant and restoring the site if this is a prerequisite for the new asset. attributable and are not included in the cost of assets. The level has been set low bearing in mind that these items are importance due to differences between accounting policies for Non-current assets are assets with a useful life of at least three never part of normal operations and therefore render comparison companies and the City have been adjusted based on local gov- years and a value of at least one basic amount. In terms of invest- Classification between years difficult if they are not disclosed. ernment accounting policies. ments in another party’s property, if the property belongs to the Current receivables and liabilities fall due for payment no later Consolidated financial statements are produced in connec- municipal companies Skolfastigheter i Stockholm AB and Micasa than 12 months after the end of the reporting period. Non-cur- Provisions tion with the second four-month report and the annual financial Fastigheter i Stockholm AB, the investment expenditure must rent receivables and non-current liabilities fall due for payment The City makes provisions, in addition to pension provisions, for statements. total at least SEK 0.5 million to be counted as an investment. A more than 12 months after the end of the reporting period. The the effects of major reorganisations, if applicable, and commit- decision regarding this exception was made by the City Council exception is investment income which is wholly recognised as a ments within the field of infrastructure, for example. Recom- Consolidated accounting, Consolidation policies on 3 November 2008 and includes minor projects and construc- non-current liability as it does not affect liquidity. mendation 10.2, “Provisions and contingent liabilities” from The majority of the City’s companies are in the Stockholms tion activities. The exception is considered negligible in terms Development properties intended for sale are recognised as September 2011, is applied. Stadshus AB Group, which is wholly-owned by the City. The of the sums involved and does not, therefore, affect the financial current assets. financial statements of the Stockholms Stadshus AB Group are statements to a significant extent. Holiday pay liability, unpaid overtime and non-regulated Pension commitments used as the basis for consolidation for the consolidated financial Current assets are recognised at the lower of cost and fair agreement increases are recognised as liabilities according to their The City’s pension provision is recognised partly as a provision statements. In the consolidated financial statements, all inter- value at the end of the reporting period. status on 31 December 2013. in the balance sheet and partly as a contingent liability. Pensions nal transactions and internal profits and losses of significant earned up to and including 1997 are recognised as a contingent lia- importance are eliminated. The subsidiary S:t Erik Livförsäkring Intangible assets Financial activities bility. The individual pension entitlement earned by the City’s staff AB of the Stockholms Stadshus AB Group recognises financial The City of Stockholm does not currently recognise any intangi- Financial activities within the Municipal Group are based on during the year is recognised in the balance sheet as an accrued instruments at fair value. No adjustment is made for this in the ble assets. According to the City’s accounting rules for invest- the City’s finance policy, which is established each year by the expense. The pension provision is corrected for insured commit- consolidated financial statements as the values are not of signifi- ment, restrictiveness should be applied when an asset is classified City Council. Foreign loans are measured in accordance with ments, which are negligible. Management pensions are recognised cant importance. as intangible to avoid overvaluation on the asset side. Up to and principles for hedge accounting. The City uses currency futures in the balance sheet from 2002 onwards. Pensions, in accordance The consolidated financial statements have primarily been including 2013, no assets were deemed to meet the requirement and/or interest and currency swaps to hedge positions in the event with local pension rules in addition to the municipal pension prepared in accordance with the acquisition method of propor- for intangible assets. of currency and interest-rate fluctuations. Recommendation 21 agreement, KAP-KL, are included in the pension provision. tional consolidation, in that only the owned shares of the compa- for the accounting of derivatives and hedge accounting has been The change in pension provision includes a portion for index nies’ accounting items are consolidated and the carrying amounts Impairment of assets applied as of the 2013 financial statements. Purchases or sales of linking the pension provision. When the change in pension of shares in Group companies are eliminated against the acquired The impairment of assets has been conducted in accordance with financial assets or liabilities are recognised on the settlement date. provision is expensed, the index linking is entered along with share of the subsidiaries’ equity. Accordingly, the consolidated RKR 19. The City applies the limit that an asset’s value shall Financial current assets and current liabilities are valued at cost. the related employer’s contribution as a financial expense. The financial statements only include the portion of the subsidiaries’ amount to at least SEK 1 million for testing of the impairment Any issue costs and similar transaction costs are allocated to a effect of the resolved change in the RIPS rate of 0.75 percent is equity that arose after the acquisition. In cases where the con- requirement to take place. An impairment is made when the particular period in accordance with the effective interest method. recognised as a financial expense affecting comparability. The solidated cost of the shares exceeds the value of the company’s carrying amount exceeds the recoverable value by at least SEK calculation of the pension provision is made in accordance with net assets according to the acquisition analysis, the difference is Annual Financial Statements Financial Annual Annual Financial Statements Financial Annual 0.5 million and the change is deemed to be permanent, whereby the Guidelines for pension provision calculation (RIPS 07). The recognised as a group surplus value. If a group undervalue has permanent is defined as being at least five years. basis for the calculations is the KAP-KL pension agreement. arisen, this is recognised as negative consolidated goodwill.

90 the city of stockholm’s annual report 2013 the city of stockholm’s annual report 2013 91 In the consolidated financial statements, jointly-owned com- financial year, the deficit must be eliminated within three years Notes to the income statement panies are not consolidated proportionally but consolidated using after it was recognised. The basic principle is that capital gains the equity method. The departure from using the proportional are excluded from income in the reconciliation with the bal- NOTE 1 OPERATING COSTS CITY MUNICIPAL GROUP consolidation method, however, has no significant effect on the anced-budget requirement. However, exceptions may be made if consolidated financial statements’ turnover or balance-sheet total. they are in line with sound financial management, for example if SEK million 31 Dec 2013 31 Dec 2012 31 Dec 2013 31 Dec 2012 the sale is part of a restructuring process. Capital gains on devel- Tariffs, fees etc. 4,419.3 4,465.9 7,781.7 8,542.9 Rents, site leaseholds 3,835.3 3,811.4 10,358.1 10,261.9 Application of certain accounting policies opment properties recognised as current assets are excluded. Government grants 1,376.8 1,259.1 1,441.4 1,311.0 at the City of Stockholm EU grants 63.9 65.9 63.9 65.9 Investments The balance sheet is a summary of assets, equity, provisions and Total operating income 9,695.3 9,602.3 19,645.1 20,181.6 As of 2009, almost all of the committees’ investments exceeding liabilities at the end of the reporting period, i.e. on the last day of Internal transactions have been eliminated from the operating income. one basic amount are recognised on the balance sheet. Exceptions the accounting period. include some small committees such as the Chief Guardians Com- NOTE 2 INCOME AFFECTING COMPARABILITY CITY MUNICIPAL GROUP mittee and the Senior Citizens Committee. As of the budget for Commercial papers may be issued by, for example, municipalities 2014, all committees have investment allowances. or companies. Loans may be raised through the issue of promis- SEK million 31 Dec 2013 31 Dec 2012 31 Dec 2013 31 Dec 2012 sory notes in the form of certificates with maturities of up to one Refund of insurance agreement premiums 2005 and 2006 (AGS-KL, AVBF-KL) 511.0 507.3 - - Capital gains from sales 1,035.6 772.3 2,134.7 3,622.8 Development properties year. of which sales of development properties 241.6 407.6 241.6 407.6 Development properties intended for sale are recognised as Total income affecting comparability 1,546.6 1,279.6 2,134.7 3,622.8 current assets for all accounting year ends. During the current Equity is the difference between assets and liabilities. It shows the financial year, development properties in the non-current assets percentage of assets not financed through debt. NOTE 3 OPERATING COSTS CITY MUNICIPAL GROUP register are recognised as non-current assets. Elimination involves the removal of internal items so that income, SEK million 31 Dec 2013 31 Dec 2012 31 Dec 2013 31 Dec 2012 Materials and services purchased etc. -7,919.9 -7,854.2 -27,777.3 -28,040.5 Investment income costs, receivables and liabilities do not show ‘inflated’ values. Housing allowance, financial assistance and other support -2,237.1 -2,203.6 -2,237.1 -2,203.6 RKR recommendation 18 regarding income from fees, grants of which financial assistance -970.0 -982.7 -970.0 -982.7 and sales has been applied from 2010. Investment income in the Euro Commercial Paper (ECP) is a commercial paper issued on External providers -16,110.9 -15,423.0 0.0 0.0 Salaries* -12,432.2 -12,048.2 -20,353.6 -19,769.6 form of grants and fees is recognised as a liability in the external the Euro market. Employer contributions and insurance agreements* -3,717.0 -3,665.3 0.0 0.0 financial statements in accordance with the recommendation. At Pension payments** -1,921.7 -1,900.6 0.0 0.0 committee level, income is capitalised on the assets side, i.e. is Euro Medium Term Note (EMTN) are promissory notes in the of which payment of pensions -819.4 -794.0 0.0 0.0 of which pension fees -580.7 -564.3 0.0 0.0 offset. The income is reversed and recognised on the liability side form of bonds with maturities over year. EMTNs are issued in the of which occupational pension insurance -0.5 -1.0 0.0 0.0 in the central financial statements. Euro market. of which special employer’s contribution -333.2 -358.6 0.0 0.0 of which changes in pension provision incl. employer’s contribution -187.9 -184.6 0.0 0.0 Other staff costs -163.7 -180.8 0.0 0.0 Municipality basis 13 Obligation – a commitment originating from a contract, legisla- Total operating costs -44,502.4 -43,275.8 -50,367.9 -50,013.7 As of 2013, Municipality basis 05 is replaced by Municipality ba- tion or other legal basis. sis 13 as the municipal chart of accounts. The values for 2012 are Internal transactions have been eliminated from the operating costs. translated to the new chart of accounts for comparisons between The statement of cash flows shows the cash flows from various * Hourly pay, extra pay for inconvenient working hours, overtime including employer’s contribution are allocated to a particular period. ** Interest and basic-amount indexation for the pension provision, including employer’s contribution, is entered under financial expenses. 2013 and 2012. parts of the operation, such as investing activities. The sum of these various areas comprises the total cash flow for the year. Definitions of items in the annual financial statements NOTE 4 COSTS AFFECTING COMPARABILITY CITY MUNICIPAL GROUP Non-current assets are assets intended for continuous use in oper- Net financial items are the difference between financial income SEK million 31 Dec 2013 31 Dec 2012 31 Dec 2013 31 Dec 2012 ations. They may be intangible (for example, goodwill), tangible and financial expense in the income statement. Capital losses from sales -48.7 -17.2 -13.1 -28.3 (for example, buildings) or financial (for example, shares). Competence fund -0.6 -6.0 -0.6 -6.0 A Medium Term Note (MTN) is a loan that can be raised through Vision Järva, Vision Söderort and Hässelbylyftet - 87.0 -78.8 - 87.0 -78.8 E-service programme -46.8 -69.2 -46.8 -69.2 Depreciation/amortisation according to plan is the allocated total the issue of promissory notes in the form of bonds with maturities IT investment 2011 and 2012 financial statements -37.4 -11.0 -37.4 -11.0 expenditure for a fixed asset. The cost is distributed over the num- of at least one year. of which procurement of a new accounting system (SUNE) -8.3 -5.3 -8.3 -5.3 ber of years that the asset is used in the operation. Balance-adjusted of which Skolplattform -25.4 0.0 -25.4 0.0 of which efficient purchasing 0.0 -5.7 0.0 -5.7 Current assets are assets that are not held for continuous use, but depreciation/amortisation is used for supplementary investments. of which eDok project -3.7 0.0 -3.7 0.0 Assets without a finite useful life are not depreciated or amortised. are consumed in conjunction with the production of products or of which efficient purchasing

services or are otherwise used in the operation. Total costs affecting comparability -220.6 -182.1 -185.0 -193.1 Provisions are obligations attributable to the financial year or previous financial years; their existence at the end of the reporting The income statement is a summary of income and costs which period is certain or probable, but the amounts payable or the date result in a surplus or deficit for a specific period. on which these amounts will be paid is uncertain, and they rest on a present obligation. The equity/assets ratio is a measure of long-term solvency and can be viewed as an indicator of financial strength. It shows equi- The balanced-budget requirement is linked to the income state- ty as a percentage of total assets. ment. Pursuant to chapter 8, section 4 of the Local Government Annual Financial Statements Financial Annual Annual Financial Statements Financial Annual Act, the budget must be prepared so that income exceeds costs. If Surplus for the year shows the change in equity. a deficit is recognised, i.e. if costs exceed income in any particular

92 the city of stockholm’s annual report 2013 the city of stockholm’s annual report 2013 93 NOTE 5 DEPRECIATION/AMORTISATION CITY MUNICIPAL GROUP NOTE 10 FINANCIAL EXPENSES CITY MUNICIPAL GROUP

SEK million 31 Dec 2013 31 Dec 2012 31 Dec 2013 31 Dec 2012 SEK million 31 Dec 2013 31 Dec 2012 31 Dec 2013 31 Dec 2012 Depreciation/amortisation according to plan* -878.0 -806.6 -3,446.0 -3,293.0 Interest expenses* -770.2 -733.8 -468.6 -551.3 Impairments -20.1 -25.0 -9.7 -4.5 Other financial expenses** -104.0 -136.2 -104.8 -136.4 Impairment reversal 0.1 0.0 - - Total financial expenses -874.2 -869.9 -573.4 - 687.7 Disposals -20.8 -43.4 - - Total depreciation/amortisation -918.9 -875.1 -3,455.6 -3,297.5 Average interest rate Average interest rate of external debt portfolio incl. derivatives (%) 2.54 2.71 2.54 2.71 *Amortisation of intangible assets Average interest rate of external debt portfolio excl. derivatives (%) 2.16 2.67 2.16 2.67 Tenancy rights and intangible assets (20-33%) - - -18.7 -20.0 Goodwill (20 percent) - - 0.0 -2.3 Average fixed-rate period Average fixed-rate period of external debt portfolio incl. derivatives, years 2.2 2.1 2.2 2.1 *Depreciation of property, plant and equipment Average fixed-rate period of external debt portfolio excl. derivatives, years 1.7 1.4 1.7 1.4 Buildings and plant (2-33%) -756.0 -690.3 -2,951.2 -2,776.0 Machinery and equipment (2-33%) -122.0 -116.3 - 476.1 -494.7 * Interest expenses are recognised net of interest-rate and currency swaps in accordance with RKR 21. *Total depreciation/amortisation -878.0 -806.6 -3,446.0 -3,293.0 Interest income and interest expenses for interest-rate and currency swaps were previously recognised as gross amounts, hence the adjustment of the value for 2012 by SEK 165.5 million. * Interest income and interest expenses for interest-rate and currency swaps were previously recognised as gross amounts. These are now ** Interest and basic amount indexation for the pension provision including employer’s contribution is entered under other financial expenses (SEK -94.7 million 2013). recognised net under interest expenses to follow RKR 21. This has resulted in an adjustment of SEK 165.5 million on the value for 2012. NOTE 11 FINANCIAL EXPENSES AFFECTING COMPARABILITY CITY MUNICIPAL GROUP NOTE 6 TAX INCOME CITY MUNICIPAL GROUP SEK million 31 Dec 2013 31 Dec 2012 31 Dec 2013 31 Dec 2012 SEK million 31 Dec 2013 31 Dec 2012 31 Dec 2013 31 Dec 2012 Interest on pension provision, due to 0.75 percent lower discount rate -414.7 0.0 -414.7 0.0 Preliminary tax income for the year 35,911.5 33,647.4 35,911.5 33,647.4 Adjustment of forecast final tax settlement for 2011/2010 7.3 5.4 7.3 5.4 Total financial expenses affecting comparability -414.7 0.0 -414.7 0.0 Adjustment of forecast final tax settlement for 2012/2011 20.7 5.9 20.7 5.9 Forecast final tax settlement for 2013/2012 -214.7 389.3 -214.7 389.3 Burial fees 141.9 130.5 141.9 130.5 NOTE 12 PROVISIONS AND PROVISIONS UTILISED CITY MUNICIPAL GROUP Total tax receipts 35,866.6 34,178.4 35,866.6 34,178.4 SEK million 31 Dec 2013 31 Dec 2012 31 Dec 2013 31 Dec 2012 Provisions for the year Burial fees -15.9 -6.4 -15.9 -6.4 NOTE 7 GENERAL GOVERNMENT GRANTS AND CITY MUNICIPAL GROUP Infrastructure investments -480.0 0.0 -480.0 0.0 EQUALISATION Total provisions for the year -495.9 -6.4 -495.9 -6.4 SEK million 31 Dec 2013 31 Dec 2012 31 Dec 2013 31 Dec 2012 Provisions utilised from previous year Settlement grants 401.0 424.6 401.0 424.6 Accommodation for the mentally impaired 3.8 10.4 3.8 10.4 Cost equalisation grants 1,312.1 1,347.3 1,312.1 1,347.3 Accommodation for the elderly 13.6 5.5 13.6 5.5 Municipal property charge, reduced claim 2012 -4.9 -0.8 -4.9 -0.8 Homeless projects, evidence-based methods 8.2 13.2 8.2 13.2 Municipal property charge, 2013 forecast 1,062.5 1,113.3 1,062.5 1,113.3 Homeless 0.0 0.5 0.0 0.5 Municipal property charge refund, too much received -5.4 0.0 -5.4 0.0 Transport and Waste Collection Committee; waste collection operations 24.0 6.4 24.0 6.4 Total general government grants and equalisation grants 2,765.3 2,884.5 2,765.3 2,884.5 Infrastructure costs 281.5 311.5 281.5 311.5 Pre-school expansion 8.8 79.0 8.8 79.0 Fees in the equalisation system SciLifeLab contributions etc. 2.6 0.0 2.6 0.0 Income equalisation fee -1,889.4 -1,532.0 -1,889.4 -1,532.0 LSS equalisation fee -764.2 -630.2 -764.2 -630.2 Total provisions utilised from previous year 342.6 426.4 342.6 426.4

Total fees in equalisation system -2,653.6 -2,162.2 -2,653.6 -2,162.2 Net provisions/provisions utilised -153.3 420.0 -153.3 420.0

Total general government grants and equalisation grants 111.7 722.3 111.7 722.3 NOTE 13 TAX CITY MUNICIPAL GROUP NOTE 8 FINANCIAL INCOME CITY MUNICIPAL GROUP SEK million 31 Dec 2013 31 Dec 2012 31 Dec 2013 31 Dec 2012

SEK million 31 Dec 2013 31 Dec 2012 31 Dec 2013 31 Dec 2012 Current tax - - -351.4 -610.5 Deferred tax - - 63.8 104.2 Interest income* 1,173.8 1,131.3 46.6 234.7 Other financial income 6.6 20.7 31.6 21.7 Total tax - - -287.6 -506.3 Share dividend, other** 203.0 203.1 0.0 0.0 Dividend in accordance with Swedish Municipal Housing Companies Act, SFS 2010:879 1,900.0 670.0 0.0 0.0 NOTE 14 COSTS IN ACCORDANCE WITH EXTRAORDINARY CITY Total financial income 3,283.4 2,025.1 78.2 256.4 CIRCUMSTANCES CH. 8, SECT. 5B OF LOC.

Other financial income includes e.g. guarantee income from the municipal housing companies. SEK million 31 Dec 2013 31 Dec 2012 * Interest income and interest expenses for interest-rate and currency swaps were previously recognised as gross amounts. These are now recognised net under interest Competence fund* 0.6 6.0 expenses to follow RKR 21. This has resulted in an adjustment of SEK 165.5 million on the value for 2012. Vision Järva and Vision Söderort* 87.0 78.8 ** Dividend SEK 200 million Fortum Värme Holding AB, SEK 3.0 million Mässfastigheter AB. E-service programme* 46.8 69.2 IT investment* 37.4 11.0 Total costs in accordance with extraordinary circumstances ch. 8, sect. 5b of Loc. 171.9 164.9 NOTE 9 FINANCIAL INCOME AFFECTING COMPARABILITY CITY MUNICIPAL GROUP * See note 4. SEK million 31 Dec 2013 31 Dec 2012 31 Dec 2013 31 Dec 2012 Total capital gains from sale of financial assets* 21.3 12.5 - - Of which sale of tenant-owner apartments 4.1 12.5 - - Of which sale of Mässfastigheter i Stockholm AB 17.1 0.0 - - NOTE 15 POSSIBLE ALLOCATION TO RUR CITY Impairment reversal - financial assets 3.6 0.0 SEK million 31 Dec 2013 31 Dec 2012 Total financial income affecting comparability 24.9 12.5 - - Balanced-budget requirement performance for the year 2,286.4 2,317.7 Less 1 percent of tax receipts and general government grants -359.8 -349.0 * Value corrected with capital gains on the sale of financial assets in 2012; transferred to financial items Less extra dividend in accordance with Swedish Municipal Housing Companies Act, SFS -1,900.0 -670.0 2010:879 Total possible allocation to RUR 26.6 1,279.6 Annual Financial Statements Financial Annual Annual Financial Statements Financial Annual Proposed allocation to RUR 0.0 0.0

94 the city of stockholm’s annual report 2013 the city of stockholm’s annual report 2013 95 Notes to the cash flow statement Notes to the balance sheet

The City’s balance sheet recognises receivables and liabilities in relation to the City’s own companies in gross amounts. NOTE 16 REVERSAL OF CAPITAL GAINS/LOSSES CITY MUNICIPAL GROUP SEK million 31 Dec 2013 31 Dec 2012 31 Dec 2013 31 Dec 2012 NOTE 24 INTANGIBLE ASSETS CITY MUNICIPAL GROUP A reversal of capital gains/losses is carried out so that the actual sales value -1,011.7 -767.6 -2,121.6 -3,594.6 is included under investing activities. SEK million 31 Dec 2013 31 Dec 2012 31 Dec 2013 31 Dec 2012 Opening intangible assets, 1 January - - 210.2 182.2 Opening amortisation, 1 January - - -115.7 -99.1 NOTE 17 SPECIFICATION OF ITEMS NOT AFFECTING CITY MUNICIPAL GROUP Amortisation for the year - - -18.7 -22.3 LIQUIDITY Impairments for the year - - 0.0 0.0 New investments for the year - - 4.8 9.6 SEK million 31 Dec 2013 31 Dec 2012 31 Dec 2013 31 Dec 2012 Sales -9.1 0.0 Specification of items not affecting liquidity 2,103.5 1,182.3 3,770.1 2,471.7 Reclassification - - 1.4 24.1 Adjustment for amortisation/depreciation and impairments 918.9 875.1 3,455.6 3,297.5 Total intangible assets - - 73.0 94.5 Adjustments for provisions made 1,185.9 308.0 933.6 -166.0 Adjustment for reversed income -1.3 -0.8 0.0 0.0 Depreciation periods 3–10 years 3–10 years Adjustment for released provision 0.0 0.0 0.0 0.0 Tax expense - - -512.9 -506.3 Profits from participations in associates - - -106.3 -153.5 NOTE 25 LAND, BUILDINGS AND PLANT CITY MUNICIPAL GROUP

SEK million 31 Dec 2013 31 Dec 2012 31 Dec 2013 31 Dec 2012 Land, buildings and plant, 1 January 54,100.4 50,568.5 142,106.2 133,339.2 NOTE 18 DECREASE IN PROVISIONS DUE TO PAYMENTS Opening depreciation, 1 January -5,720.0 -5,029.7 -34,810.9 -32,517.7 SEK million 31 Dec 2013 31 Dec 2012 Depreciation for the year -756.0 -690.3 -2,952.8 -2,774.8 Decrease in provisions due to payments -61.0 -114.9 Impairments for the year -40.9 -68.5 -9.7 -4.5 Provisions utilised -342.6 -426.4 Of which impairment reversals 0.1 0.0 - - Less infrastructure contributions, recognised separately 281.5 311.5 Of which disposals -20.8 -43.4 - - New investments for the year 4,114.6 3,607.6 4,472.8 6,048.8 Investment grants for the year -13.5 -39.7 0.0 0.0 NOTE 19 INCREASE/DECREASE IN CURRENT LIABILITIES Sales -217.3 -137.5 -825.9 -1,813.6 ETC. Reclassification 92.4 - 5,702.2 5,017.9 Reclassification of development properties -786.0 170.0 - - SEK 31 Dec 2013 31 Dec 2012 million Total land, buildings and plant 50,773.8 48,380.4 113,681.9 107,295.3 Increase/decrease in current liabilities etc. 3,490.7 -2,567.7 Depreciation periods 10–50 years 10–50 years 10–50 years 10–50 years Change in current liabilities 2,235.7 680.1 Change in short-term loans excl. change in utilised overdraft facility 1,146.2 -3,180.8 Investment: one price base amount, useful life 3> years. RKR recommendation 19 regarding impairments has been applied. Reclassification of public properties of SEK 367.1 million to other properties has taken place according to the current fixed-assets register. Change in holiday-pay liability etc. 108.8 - 67.0 An impairment of SEK 13.7 million relating to projects in vain is included in the impairment amount.

NOTE 20 INVESTMENT IN PROPERTY, PLANT AND EQUIPMENT NOTE 26 MACHINERY AND EQUIPMENT CITY MUNICIPAL GROUP SEK million 31 Dec 2013 31 Dec 2012 SEK million 31 Dec 2013 31 Dec 2012 31 Dec 2013 31 Dec 2012 Of which land, buildings and plant -4,276.5 -4,574.8 Of which machinery and equipment - 4,114.6 -3,607.6 Machinery and equipment, 1 January 1,339.5 1,202.8 11,597.2 10,868.5 Financial leases are included in the total for machinery and equipment. -161.9 -136.7 Opening depreciation -882.2 -765.9 - 4,957.5 - 4,453.1 See note 49 for specification. Depreciation for the year -122.0 -116.3 - 476.1 -494.7 Of which construction, extension and conversion work in progress 0.0 -830.4 Impairments for the year 0.0 0.0 0.0 0.0 New investments for the year* 161.9 136.7 219.0 294.9 Sales -13.1 0.0 -262.1 -153.6 NOTE 21 SALE OF PROPERTY, PLANT AND EQUIPMENT Reclassification - - 431.9 577.8 Total machinery and equipment* 484.2 457.3 6,552.5 6,639.8 SEK million 31 Dec 2013 31 Dec 2012 Depreciation periods (linear depreciation) 5-20 years 5-20 years 5-20 years 5-20 years Sale of property, plant and equipment 1,217.2 892.6 Carrying amount of land, buildings and plant 217.3 137.5 Investment: one price base amount, useful life 3> years. Carrying amount of machinery and equipment 13.1 0.0 * For the City, financial lease agreements are included in the amount for machinery and equipment; see note 49 for specification. Capital gains/losses 986.8 755.1 The Stockholms Stadshus AB Group has no financial lease agreements.

Sale of financial assets 37.6 12.7 Carrying amount of financial assets 12.7 0.2 Capital gains/losses 24.9 12.5 NOTE 27 CONSTRUCTION, EXTENSION AND CONVERSION CITY MUNICIPAL GROUP WORK IN PROGRESS

NOTE 22 INCREASE/DECREASE IN NON-CURRENT LIABILITIES SEK million 31 Dec 2013 31 Dec 2012 31 Dec 2013 31 Dec 2012 Construction, extension and conversion work, 1 January 5,596.3 4,765.9 15,262.5 13,224.5 SEK million 31 Dec 2013 31 Dec 2012 New investments for the year 0.0 830.4 7,460.2 7,715.3 This includes the reversal of the reclassification of 1,150.3 1,160.0 Sales 0.0 0.0 -40.7 - 57.4 long-term borrowing to short-term Reclassification to land, buildings and plant -92.4 0.0 -6,034.6 -5,619.8 Adjustment made with item not affecting liquidity -1.3 -0.8 Total construction, extension and conversion work in progress 5,503.9 5,596.3 16,647.4 15,262.5

Investment: one price base amount, useful life 3> years. NOTE 23 CASH AND CASH EQUIVALENTS AT END OF PERIOD

SEK million 31 Dec 2013 31 Dec 2012 Cash and cash equivalents at end of period -130.1 128.4 Imprest cash etc. 4.8 5.7 Annual Financial Statements Financial Annual Annual Financial Statements Financial Annual Cash and cash equivalents (bank etc.) 0.0 122.7 Utilised overdraft facility -134.9 0.0

96 the city of stockholm’s annual report 2013 the city of stockholm’s annual report 2013 97 NOTE 28 SHARES AND PARTICIPATIONS CITY MUNICIPAL GROUP NOTE 31 INVENTORIES AND WORK IN PROGRESS CITY MUNICIPAL GROUP

SEK million 31 Dec 2013 31 Dec 2012 31 Dec 2013 31 Dec 2012 SEK million 31 Dec 2013 31 Dec 2012 31 Dec 2013 31 Dec 2012 Shares and participations, 1 January 3,879.8 3,853.7 2,356.3 2,089.0 Inventories 3.9 8.1 38.3 37.1 Purchase of tenant-owner apartments 13.6 26.3 13.6 26.3 Work in progress 0.1 0.0 4.2 8.5 Purchase of shares and participations 0.0 0.0 208.8 241.3 Total inventories and work in progress 4.0 8.1 42.5 45.6 Sale of tenant-owner apartments -1.9 -0.2 -1.9 -0.2 Sale of shares and participations -10.9 0.0 -256.9 0.0 Inventories are measured at the lower of cost and fair value. Total shares and participations 3,880.7 3,879.8 2,320.0 2,356.3

NOTE 32 CURRENT RECEIVABLES – OTHER CITY MUNICIPAL GROUP

SHARES IN MUNICIPAL COMPANIES ETC. ON 31 DECEMBER 2013 SEK million 31 Dec 2013 31 Dec 2012 31 Dec 2013 31 Dec 2012 Participating Carrying amount Tax/VAT receivables 648.6 599.0 461.9 205.2 Share capital interest 31 Dec 2012 Government grant receivables 139.6 145.9 139.6 145.9 Company (SEK thousand) (%) (SEK thousand) Current receivables from the City’s Group companies* 43,754.4 36,615.9 0.0 0.0 Stockholms Stadshus AB 2,850,000.0 100.0 3,483,582.0 Other current receivables 33.3 13.4 1.0 1.0 Kaplansbacken AB 500.0 100.0 514.0 Prepaid expenses and accrued income 2,493.3 3,134.3 2,867.0 2,401.9 Svenska Teknologföreningens Fastighets AB 562.0 100.0 562.0 Accounts receivable – trade 734.4 722.5 1,210.9 1,254.8 Stockholms Terminal AB 1,000.0 50.0 2,300.0 Total current receivables – other 47,803.6 41,231.1 4,680.4 4,008.8 AB Fortum Värme Holding jointly owned with Stockholms stad 1,000.0 49.9 800.0

Total shares in subsidiaries/Group companies 3,487,758.0 * The City administers borrowing for the City’s companies. The companies borrow from the City when required.

Shares in other companies SÖRAB 8,000.0 5.0 400.0 AB ServiData (deposit certificate) 0.1 NOTE 33 SHORT-TERM LENDING CITY MUNICIPAL GROUP

Total shares in other companies 400.1 SEK million 31 Dec 2013 31 Dec 2012 31 Dec 2013 31 Dec 2012 Current portion of non-current receivables* 0.8 0.8 0.8 0.8 Participations in Greater Stockholm Fire Brigade (statutory joint authority) 27,831.4 Total short-term lending 0.8 0.8 0.8 0.8

Total participations in statutory joint authorities 27,831.4 * Non-current receivables with a due date within one year of the end of the reporting period. These receivables have been transferred to short-term lending. Participations in tenant-owner apartments 364,663.3

Total participations in tenant-owner apartments 364,663.3

Total shares and participations, City 3,880,652.8 NOTE 34 INVESTMENTS IN SECURITIES ETC. CITY MUNICIPAL GROUP SEK million 31 Dec 2013 31 Dec 2012 31 Dec 2013 31 Dec 2012 Skills credit account 35.5 41.0 240.4 44.4

NOTE 29 NON-CURRENT RECEIVABLES CITY MUNICIPAL GROUP Total investments in securities etc. 35.5 41.0 240.4 44.4

SEK million 31 Dec 2013 31 Dec 2012 31 Dec 2013 31 Dec 2012 Opening non-current receivables, 1 January 1,702.4 1,703.5 1,998.1 2,187.3 NOTE 35 CASH AND BANK EQUIVALENTS CITY MUNICIPAL GROUP New lending 0.0 0.0 0.0 0.0 Reversal of previous year’s reclassification 0.8 1.1 0.8 1.1 SEK million 31 Dec 2013 31 Dec 2012 31 Dec 2013 31 Dec 2012 Amortisation -1.1 -1.1 -1.1 -1.1 Imprest cash etc. 4.8 5.7 4.8 5.7 Revaluation/impairment 0.0 0.0 0.0 0.0 Cash and cash equivalents (bank etc.) 0.0 122.7 189.1 313.8 Current portion of non-current receivables* -0.8 -1.1 -0.8 -1.1 Change in deferred tax assets 0.0 0.0 3.4 -211.5 Total cash and cash equivalents 4.8 128.4 193.9 319.5 Change in other non-current receivables - - 187.3 23.5 Total non-current receivables 1,701.3 1,702.4 2,187.7 1,998.1 NOTE 36 EQUITY CITY MUNICIPAL GROUP Borrowers Fortum Oyj 1,667.0 1,667.0 1,667.0 1,667.0 SEK million 31 Dec 2013 31 Dec 2012 31 Dec 2013 31 Dec 2012 Other 34.6 35.4 34.6 35.4 Opening equity, 1 January 53,188.4 50,151.1 94,706.5 89,881.3 Deferred tax assets 0.0 0.0 250.8 247.4 of which allocation of changes for 2002, 2006, 2010 and 2011, see note 37 -171.9 -164.9 - - Other 0.0 0.0 235.3 48.3 Change in equity as per income statement 3,444.4 3,037.3 2,502.0 4,828.2 Balanced-budget reserve 0.0 0.0 0.0 0.0 Total non-current receivables 1,701.6 1,702.4 2,187.7 1,998.1 Dividend 0.0 0.0 -0.1 -3.0 Changes in accounting policies* - - 2,433.1 - * Receivables with a due date within one year of the end of the reporting period. These receivables have been transferred to short-term lending. Total equity 56,632.8 53,188.4 99,641.6 94,706.5

* Changed accounting policy for the elimination of previous dividends to the City from the company AB Fortum Värme Holding jointly owned with the City of Stockholm, NOTE 30 DEVELOPMENT PROPERTIES CITY MUNICIPAL GROUP the adjustment amounts to SEK 1,000,000 thousand. Changed accounting policy for the adjustment of non-controlling acquisitions that Stockholms Stadshus AB made from the City on 31 December 2005, the adjustment SEK million 31 Dec 2013 31 Dec 2012 31 Dec 2013 31 Dec 2012 amounts to SEK 1,279,849 thousand. Development properties* 2,616.0 1,830.0 2,616.0 1,830.0 Changed accounting policy for the earlier adjustment of internal acquisitions of land, the adjustment amounts to SEK 153,290 thousand. Unrestricted equity for the Municipal Group increased by SEK 2,433,139 thousand overall through these adjustments. Total leasehold land 2,616.0 1,830.0 2,616.0 1,830.0

* All development properties intended for sale are recognised as current assets. Annual Financial Statements Financial Annual Annual Financial Statements Financial Annual

98 the city of stockholm’s annual report 2013 the city of stockholm’s annual report 2013 99 NOTE 37 TOTAL EQUITY NOTE 39 OTHER PROVISIONS CITY

Less SEK million 31 Dec 2013 31 Dec 2012 SEK million OB 2007 Less to date 31 Dec 2013 31 Dec 2012 Division of homelessness projects, evidence-based methods -21.8 Competence fund 121.1 -57.0 -0.6 63.5 Division of elderly care expansion projects -69.3 Division of disability care expansion projects -140.3 Of which City Council etc. 1.3 -0.9 0.0 0.4 Of which Social Services Committee 11.5 -9.6 -0.6 1.2 Provision for the year Of which Senior Citizens Committee 28.1 -28.1 0.0 0.0 Utilised -29.6 Of which Education Committee 80.2 -18.3 0.0 61.9 Closing balance 0.0 231.4 Less Incentive payments for accommodation for the mentally impaired** OB 2007/2011 Less to date 31 Dec 2013 31 Dec 2013 Opening balance 0.0 E-service programme 650.0 -525.0 -46.8 78.3 From community i.e. elderly, disabled, evidence-based 140.3

Less Utilised -3.8 OB 2007/2011 Less to date 31 Dec 2013 31 Dec 2013 Closing balance 136.5 Vision Järva, Vision Söderort and Hässelbylyftet* 450.0 -288.5 -87.0 74.5 Incentive payments for accommodation for the elderly** Less Opening balance 0.0 OB 2013 Less to date 31 Dec 2013 31 Dec 2013 From community i.e. elderly, disabled, evidence-based 69.3 IT investments** 800.0 -11.0 -37.4 751.6 Utilised -13.6 Of which efficient purchasing -5.7 0.0 Closing balance 55.7 Of which Skolplattform -25.4 Incentive payments for homeless projects, evidence-based methods** Of which e-dok -3.7 Opening balance 0.0 Of which procurement of a new accounting system (SUNE) -5.3 -8.3 From community i.e. elderly, disabled, evidence-based 21.8 Total allocation of changes for 2002, 2006, 2010 and 2011 -171.9 Utilised -8.2

Closing balance 13.6 * Initial decision SEK 200 million. In 2010, the City Council approved the appropriation of SEK 200 million from the surplus for 2010 for investments in Vision Söderort and Vision Järva. This investment was increased by SEK 50 million in 2011. Transport and Waste Collection Committee; waste collection activities ** In 2011, the City Council approved the appropriation of SEK 550 million for IT investments. In 2012, the City Council approved the appropriation of SEK 250 million for Opening balance, 1 January 66.6 73.0 IT investments, such as in Skolplattform Stockholm. Utilised -24.0 -6.4 Provision for the year 0.0 0.0 Closing balance 42.6 66.6 NOTE 38 PENSIONS AND SIMILAR COMMITMENTS CITY Burial fees SEK million 31 Dec 2013 31 Dec 2012 Opening balance, 1 January 25.6 19.2 Pension provision, 1 January 4,199.6 3,891.6 Provision for the year 15.9 6.4 New entitlement and change in liability to employees 265.0 95.0 Closing balance 41.5 25.6 Defined-contribution pensions for managers 5.5 -7.2 Change in liability to retired employees 282.3 156.2 Infrastructure contributions** Time-limited and retirement pensions for elected representatives, severance pay* 3.6 -9.3 Opening balance, 1 January 7,928.3 7,910.6 Liability related to Skafab 2010/Transferred SSBF 2009 -1.2 13.2 Utilised -281.5 -311.5 Allocated to employer’s contribution 134.7 60.1 Moved provision from restructuring measures 0.0 329.1 of which interest-rate and basic-amount indexation 509.3 123.4 Provision for the year 480.0 0.0 Total pension provision 4,889.7 4,199.6 Closing balance 8,126.8 7,928.3

of which defined-contribution pensions for managers 139.4 132.5 Pre-school expansion** of which guarantee pensions incl. employer’s contribution 5.0 2.9 Opening balance, 1 January 120.2 199.2 of which special occupational pensions as agreed, incl. employer’s contribution 244.2 235.5 Utilised -8.8 -79.0 of which pension payments for elected representatives incl. employer’s contribution 175.0 191.6 Update rate (%) 80.6 % 79.0 % Closing balance 111.4 120.2 Update rate, employment in City of Stockholm (%) 99.0 % 99.0 % Science for Life Laboratory**** Number of time-limited salaried employees; the City’s time-limited salaried employees all 0.0 0.0 Opening balance, 1 January 280.0 280.0 fundamentally have permanent employment, which is why the City’s pension commit- ments have not changed due to the time limitation. Utilised -2.6 0.0 The liability has been reduced by insurance via occupational pension insurance incl. 0.5 1.0 Provision for the year 0.0 0.0 administration managers and others with special agreements. Closing balance 277.4 280.0 * Elected representatives have been included in the balance sheet as of 2010. Total opening balance 8,652.2 9,072.1

Total utilised -342.6 -426.4

NOTE 39 OTHER PROVISIONS CITY Total provisions for the year 495.9 6.4

SEK million 31 Dec 2013 31 Dec 2012 Total closing balance 8,805.5 8,652.2 Restructuring costs* * Refers to costs from restructuring property holdings: sports centres to Real Estate Committee, land for sale to Development Opening balance, 1 January 0.0 329.1 Committee, changed administrative structure, change-over of IT operation. Moved to provision for infrastructure grants 0.0 -329.1 ** These provisions have not been calculated at present value as they are stimulus funds for enabling commitments to City residents Utilised 0.0 0.0 to be honoured as quickly as possible. When the funds are used up, measures will be taken depending on other available resources. A Provision for the year 0.0 0.0 significant proportion of all provisions is estimated to be used in the period 2014-2015. Closing balance 0.0 0.0 *** Provision for E18, Norra länken, Citybanan, Tvärbanor, underground extension, other rail connections and the Royal National City Park etc. There is uncertainty regarding the amounts as a large proportion of the investments is to be carried out after 2014. The Accommodation for the elderly, support and services to disabled people, and City takes up decisions about contributions to national infrastructure as income immediately. The amounts are index-enumerated. support and service to people with mental disabilities** Provisions for infrastructure measures amount to approximately SEK 660 million in 2014, SEK 620 million in 2015, SEK 450 million Opening balance, 1 January 231.4 261.0 in 2017 and SEK 6.7 billion after 2017. **** Provision for Science for Life Laboratory etc.: the City of Stockholm’s commitment regarding a resource centre for research, molecular bioscience and medicine. To be paid in 2015 onwards. Annual Financial Statements Financial Annual Annual Financial Statements Financial Annual

100 the city of stockholm’s annual report 2013 the city of stockholm’s annual report 2013 101 NOTE 40 BOND LOANS CITY MUNICIPAL GROUP NOTE 44 SHORT-TERM LOANS CITY MUNICIPAL GROUP

SEK million 31 Dec 2013 31 Dec 2012 31 Dec 2013 31 Dec 2012 SEK million 31 Dec 2013 31 Dec 2012 31 Dec 2013 31 Dec 2012 Opening bond loan liability 11,946.4 7,193.9 11,946.4 7,193.9 Commercial paper loans 0.0 1,343.6 0.0 1,343.6 New borrowing 4,150.0 5,752.5 4,150.0 5,752.5 Utilised credit in Group account 134.9 0.0 0.0 0.0 Reversal of previous year’s reclassification 1,000.0 0.0 1,000.0 0.0 Current portion of long-term loans* 3,639.9 1,150.0 3,639.9 1,150.0 Amortisation -1,000.0 0.0 -1,000.0 0.0 of which borrowing from majority-owned companies 180.0 150.0 Current portion of long-term loans* -3,459.9 -1,000.0 -3,459.9 -1,000.0 Total short-term loans 3,774.8 2,493.6 3,639.9 2,493.6 Total bond loans 12,636.5 11,946.4 12,636.5 11,946.4 Foreign bond loans 8,736.5 8,046.4 8,736.5 8,046.4 * Long-term loans with a due date within one year of the end of the reporting period. These liabilities have been transferred to short-term loans. Swedish bond loans 3,900.0 3,900.0 3,900.0 3,900.0 Total bond loans 12,636.5 11,946.4 12,636.5 11,946.4 NOTE 45 THE CITY’S LIABILITY FOR HOLIDAY PAY AND UNPAID OVERTIME * Liabilities with a due date within one year of the end of the reporting period. These liabilities have been transferred to short-term loans. SEK million 31 Dec 2013 31 Dec 2012 Opening balance 655.9 722.9 of which holiday pay 600.9 669.1 NOTE 41 PROMISSORY NOTE LOANS CITY MUNICIPAL GROUP of which unpaid overtime 54.9 53.8 Change in holiday-pay liability 110.0 -68.2 SEK million 31 Dec 2013 31 Dec 2012 31 Dec 2013 31 Dec 2012 Change in unpaid overtime -1.2 1.2 Opening promissory note loan liability 1,000.0 0.0 1,000.0 0.0 Total liabilities for holiday pay and unpaid overtime 764.7 655.9 New borrowing 1,380.0 1,150.0 1,380.0 1,150.0 Reversal of previous year’s reclassification 150.0 1,159.7 150.0 1,159.7 of which holiday pay 710.9 600.9 Amortisation -150.0 -1,159.7 -150.0 -1,159.7 of which unpaid overtime 53.7 54.9 Current portion of long-term loans* -180.0 -150.0 -180.0 -150.0 Total promissory note loans 2,200.0 1,000.0 2,200.0 1,000.0 Foreign promissory note loans 2,200.0 1,000.0 2,200.0 1,000.0 NOTE 46 CONTINGENT LIABILITIES AND GUARANTEES

Total promissory note loans 2,200.0 1,000.0 2,200.0 1,000.0 SEK million 31 Dec 2013 31 Dec 2012 31.8 19.1 * Liabilities with a due date within one year of the end of the reporting period and which cannot be judged with certainty to be converted into non-current liabilities. City’s majority-owned companies pension commitments These liabilities have been transferred to short-term loans. of which Stockholms Stadshus AB 6.8 of which Stockholms Parkering 7.3 of which Stockholms Hamnar 4.4 of which S:t Erik Markutveckling 1.4 NOTE 42 OTHER NON-CURRENT LIABILITIES CITY MUNICIPAL GROUP of which Stockholm Business Region 4.9 of which Bostadsförmedlingen i Stockholm AV 2.1 SEK million 31 Dec 2013 31 Dec 2012 31 Dec 2013 31 Dec 2012 of which AB Svenska Bostäder 4.9 Opening borrowing, leases 0.6 0.9 0.6 0.9 Reversal of previous year’s reclassification 0.3 0.3 0.3 0.3 Total contingent liabilities and guarantees for majority-owned companies 31.8 19.1 Amortisation -0.2 -0.3 -0.2 -0.3 Reclassification -0.2 -0.3 -0.2 -0.3 Other legal entities/private individuals Loan guarantees 698.4 735.8 Total non-current liabilities, leases 0.5 0.6 0.5 0.6 of which Stiftelsen Stockholms Studentbostäder 65.6 66.0 Funds negotiated 0.6 0.6 0.6 0.6 of which Stockholms Kooperativa Bostadsförening 363.0 363.0 Liability funds 39.4 42.8 39.4 42.8 of which Fortum 33.3 66.6 Investment income allocated to a particular period** 54.1 43.2 54.1 43.2 of which Stockholms Stadsmission 80.6 82.6 (Of which investment grants) 31.6 20.1 31.6 20.1 of which SYVAB 131.6 131.6 (Of which connection charges) 22.6 23.1 22.6 23.1 of which other legal entities 24.3 26.0 (Remaining number of years, weighted average) 27.8 28.4 27.8 27.8 Pension commitments 61.0 55.5 Other non-current liabilities* 656.2 914.2 671.2 1,364.4 Municipal loss liability for small houses 1.7 1.9 Utilised overdraft facility 0.0 0.0 0.0 0.0 Total 761.1 793.2 Total other non-current liabilities 750.8 1,001.5 765.8 1,451.7 Total contingent liabilities and guarantees 792.9 812.3 * Agreement with the public service company, Swedish National Grid, regarding Stockholms Ström. ** Investment grants are allocated to the corresponding asset. NOTE 47 THE CITY’S PENSION PROVISION

SEK million 31 Dec 2013 31 Dec 2012 NOTE 43 CURRENT LIABILITIES CITY MUNICIPAL GROUP Opening pension provision, 1 January 13,940.8 13,754.9 New entitlement and change in liability to employees 113.4 -162.0 SEK million 31 Dec 2013 31 Dec 2012 31 Dec 2013 31 Dec 2012 Change in liability to retired employees 697.5 347.9 Accrued expenses and deferred income 3,211.0 2,953.0 5,622.4 4,976.0 Total pension provision 14,751.7 13,940.8 Tax liabilities/VAT 277.3 57.5 144.8 49.7 Accounts payable – trade 3,439.9 3,380.3 5,186.8 5,413.2 Plus employer’s contribution 3,578.8 3,382.0 Funds negotiated 3.2 3.0 3.2 3.0 Total pension provision including employer’s contribution 18,330.4 17,322.8 Funds deposited 6.3 7.0 6.3 7.0 Update rate (%) 80.6 78.9 Liability funds 4.0 4.0 4.0 4.0 Update rate, employment in City of Stockholm (%) 99.0 99.0 Employee taxes 266.7 278.0 310.0 319.5 Current liabilities to Group companies* 14,174.5 12,744.5 0.0 0.0 Other 970.9 690.8 1,784.9 1,011.9 Total current liabilities 22,353.8 20,118.1 13,062.5 11,784.3

* The City administers borrowing for the City’s companies. The companies borrow from the City when required. Annual Financial Statements Financial Annual Annual Financial Statements Financial Annual

102 the city of stockholm’s annual report 2013 the city of stockholm’s annual report 2013 103 NOTE 48 DERIVATIVE INSTRUMENTS Audit report for the City Executive Board in 2013 SEK million, 31 Dec 2013 Nominal amount Hedged volume Market value As the auditors appointed by the councillors, we have audited Our overall assessment is that activities have essentially been Currency/exchange-rate swaps* -1,446.4 -1,446.4 -167.9 the City Executive Board’s activities during 2013. The audit conducted appropriately and satisfactorily from a financial point Interest swaps -6,080.0 -6,080.0 -120.0 of the City Executive Board also includes municipality-wide of view, that the financial statements are essentially true Total -7,526.4 -7,526.4 -288.0 functions, the City’s annual report and accounting records, and and correct and that there has been adequate internal control.

* Currency/currency-interest swaps have been translated to the exchange rate after currency hedging. the consolidated financial statements for the Municipal Group, Our assessment is that the financial performance according Derivatives are used to minimise the risk of unforeseen higher interest expenses caused by interest-rate and/or currency fluctuations, which generate a lower risk through Stockholms Stad. to the annual report is consistent with the financial and business reduced interest-rate volatility for the City. The external debt portfolio essentially has a fixed interest rate after hedging using derivatives. The debt portfolio in foreign cur- The audit has been conducted in accordance with the Local objectives established by the councillors. rencies is 100 percent hedged to SEK. The interest expense for the year for the Municipal Group’s external debt portfolio is SEK 453.5 million (SEK 580.5 million) including derivatives, and SEK 381.6 million (SEK 366.9 million) excluding derivatives. Government Act, generally accepted auditing practice in munic- We recommend that the City’s annual report is approved. The average interest rate for the external debt portfolio including derivatives is 2.54 % (2.71 %), and excluding derivatives 2.16 % (2.67 %). The average duration of the ipal operations and the City’s auditing rules. The audit has been We also recommend that the City Executive Board and its external debt portfolio including derivatives is 2.2 years (2.1 years), and 1.7 years (1.4 years) excluding derivatives. In accordance with the Finance Policy, the average duration will be carried out using the focus and scope necessary to provide a members are discharged from liability. 2.5 years with a deviation interval of +/- 1 year. reasonable basis for assessment and review of liability. The auditor’s report includes a summary of the outcome of the The appointed lay auditors of the City’s companies – Stock- audit of the City’s committees and companies, and audit memo- holms Stadshus AB and subsidiaries – have audited the opera- randa and auditor’s reports in accordance with the list attached. NOTE 49 LEASE AGREEMENTS tions of these companies during 2013.

SEK million PRESENT VALUE MINIMUM-LEASE FEES “Carrying Due date Due date Due date Total mini- amount within 1 year 2–5 years > 5 years mum-lease fees Stockholm, 27 March 2014 Financial leases over 3 years 0.7 0.2 0.5 0.0 0.7 MINIMUM-LEASE FEES 31 Dec 2013 Due date Due date Due date Bengt Akalla Jan Demuth Bengt Leijon Bosse Ringholm within 1 year 2–5 years > 5 years Operational leases, non-cancellable leases 6,672.5 776.3 2,427.6 3,468.5 exceeding 3 years of which intra-Group leases 4,186.0 284.9 1,048.0 2,853.0 Bo Dahlström Barbro Ernemo Sven Lindeberg Gun Risberg Lease agreements with a total value of less than SEK 500,000 or an annual cost equivalent to a maximum of SEK 150,000 are not recognised. Rental agreements that fulfil these criteria are included. Rental agreements with the City’s companies have also been included in the year’s data, which involves a consider- able change in terms of amounts. As of 2008, financial leases are included on the asset side of the balance sheet under “machinery and equipment” and under both short-term and long-term liabilities. Håkan Apelkrona Birgitta Guntsch Ulla-Britt Ling-Vannerus Siv Rodin No agreements on financial leases include contingent rent. The City’s IT operation is leased from Volvo Information Technology AB. The term of the contract does not exceed three years and it is therefore not included in the financial obligation below. The cost for 2013 amounts to SEK 441.5 million (472.3). Andreas Bjerke Barbro Hedman Amanj Mala-Ali Michael Santesson

NOTE 50 SHARE DIVIDEND IN ACCORDANCE WITH WITH SECTION 5:1 OF THE ACT ON PUBLIC UTILITY MUNICIPAL Ulf Bourker Jacobsson Bengt Lagerstedt Lars Riddervik David Winks LIMITED LIABILITY HOUSING COMPANIES

SEK million 31 Dec 2013 31 Dec 2012 Share dividend in accordance with section 5:1 of the Act on Public Utility Municipal 670.0 670.0 Limited Liability Housing Companies in 2012 Expended -184.8 -93.7 The following appendices are included in the auditor’s report Total remaining 485.2 576.3 Auditors’ annual report 2013 Expert advisers’ annual reports 2013 by committee (nos. 1–32) Share dividend in accordance with section 5:1 of the Act on Public Utility Municipal 1,900.0 Limited Liability Housing Companies in 2013 Expert advisers’ project reports (nos. 6–11, 2013 and nos. 1–5, 2014) Expended -41.9 Total remaining 1,858.1 Review reports from lay auditors and auditor’s reports from the company’s authorised public accountants:

• Stockholms Stadshus AB • AB Stockholmshem • Stockholms Stads • Stockholm Business Region • AB Svenska Bostäder • AB Stockholmshem Parkerings AB Development AB • AB Stadsholmen Fastighetsnät • AB Stokab • Micasa Fastigheter i • IT-BO i Stockholm AB • Bostads AB Hammarbygård • S:t Erik Kommunikation AB Stockholm AB • Fastighets AB Burspråket • Västertorp Energi AB • S:t Erik Fiber AB • S:t Erik Markutveckling AB • Svenska bostäder • Asignalen Ä 5 AB • Stockholms Stadsteater AB • Fastighets AB G-mästaren L-Bolag 1 AB • Asignalen S 5 AB • Stockholm Globe Arena • Fastighets AB Runda Huset • Fastighets AB Centrumhuset • Fastighets AB Syl 3 Fastigheter AB • Fastighets AB Charkuteristen i Vällingby • Skolfastigheter i Stockholm • Stockholmsarenan AB • Fastighets AB Styckmästaren • AB Familjebostäder AB (SISAB) • Stockholm Entertainment • Fastighets AB Tuben • AB Familjebostäder • Bostadsförmedlingen i Distrikt AB • Kylfacket förvaltning AB Fastighetsnät Stockholm AB • Södra Byggrätten Globen AB • Fastighets AB Kylrummet • Hemmahamnen Kontor AB • Stockholm Vatten AB • Arena 9 Norra Fastigheten AB • Fastighets AB Palmfelt center • Hemmahamnen Bostad AB • Stockholm Vatten VA AB • Stockholms Business • Stockholms Norra Station AB Annual Financial Statements Financial Annual Annual Financial Statements Financial Annual • Fastighets AB Pendlaren • Stockholms Hamn AB Region AB • S:t Erik Livförsäkring AB • Gyllene Ratten Ny AB • Nynäshamns Hamn AB • Stockholm Visitors Board AB • S:t Erik Försäkrings AB

104 the city of stockholm’s annual report 2013 the city of stockholm’s annual report 2013 105 Operational outcome

ADMINISTRATIONS DISTRICT COUNCILS' OPERATIONAL AREAS

No. Budget net Net outcome Change Deviation Outcome net SEK million Budget net Net outcome Change in Deviation Employees expenses, excl. Income fund outcome 2013, investments, expenses excl. income income fund outcome 2013 SEK million surplus SEK million SEK million SEK million funds reserves, Committee and management administration -553.7 -515.6 0.0 38.1 SEK million Individual and family care -1,756.4 -1,771.7 -0.7 -15.9 City Executive Board 309 -1,335.7 -1,259.4 0.0 76.3 -0.8 of which social psychiatry - 487.6 -483.9 -0.7 3.0 College of Auditors 18 -27.7 -23.5 0.0 4.2 0.0 City environment activities -192.0 -193.3 0.0 -1.3 Service Committee 273 0.0 1.0 0.0 1.0 -1.8 depreciation/amortisation -40.8 -41.3 0.0 -0.5 Election Committee 5 -7.0 -5.0 0.0 2.0 0.0 internal rates -19.4 -18.3 0.0 1.1 City District Councils 17,652 -18,080.9 -17,995.1 -16.5 69.3 -151.8 Pre-school activities -4,264.7 -4,233.0 -12.6 19.0 Labour Market Committee 672 -690.9 -623.8 0.0 67.1 0.0 Care for the elderly -6,582.6 -6,580.0 0.6 3.2 Development Committee 169 1,121.8 1,110.7 0.0 -11.1 -2,506.3 Support and services for people with disabilities -3,091.2 -3,120.2 -3.9 -32.9 Property Committee 151 139.1 170.4 0.0 31.3 -498.5 Cultural and organisational activities -282.9 -257.1 0.1 25.9 Sports Committee 418 -545.8 -541.4 1.7 6.1 -16.5 Labour market measures -83.6 -74.8 0.0 8.7 Culture Committee: cultural administration 917 -829.1 -826.0 0.0 3.1 -12.6 Financial assistance -1,177.3 -1,182.0 0.0 -4.7 Culture Committee: city archives 77 -50.8 -50.5 0.0 0.3 -0.6 of which administrators -274.9 -276.0 0.0 -1.1 Cemeteries Committee 111 -131.9 -126.0 0.0 5.9 -83.2 Other activities -36.4 -7.9 0.0 28.5 Environmental and Health Protection Committee 221 -81.7 -78.7 0.0 3.0 -0.4 Social Services Committee 812 -733.2 -719.4 -1.0 12.8 -0.8 Total activities -18,080.9 -17,995.1 -16.5 69.3 Urban Development Committee 321 -173.8 -168.2 0.0 5.6 -3.5 TRN: transport and street operations 350 -725.6 -686.2 0.0 39.4 -920.1 The income and expenses of the operations include internal transactions. TRN: waste collection operations 36 -11.4 -24.0 0.0 -12.6 -7.4 The amounts in the tables are rounded and so do not add up exactly. Education Committee 13,631 -14,081.0 -14,081.4 0.5 0.1 -54.2 Senior Citizens Committee 116 -210.4 -209.2 0.0 1.2 0.0 COMPANIES Chief Guardians Committee 21 -34.4 -34.6 0.0 -0.2 0.0 No. Revenues, Profit after Bal- Equity Interest Equity/ Investment, Total committees 36,280 -36,490.4 -36,170.3 -15.4 304.7 -4,258.5 Employees SEK million financial ance-sheet **, SEK capital assets ratio SEK million items, SEK total, SEK million employed ****, % Note: The amounts in the tables are rounded and so do not add up exactly. million million ***, % The number of employees refers to all salaried employees as at 31 December 2013. The budget and outcomes are inclusive of capital costs and internal transactions between the committees. Stockholms Stadshus AB (Group) Increase in income fund (-). Stockholms Stadshus AB, parent company 6 32.0 3,647.0 20,789.0 20,273.0 303,931.2 97.5 28.0 Deviation is after appropriation of surplus. AB Svenska Bostäder, Group 264 2,481.0 406.0 17,711.0 12,516.0 6.5 70.7 1,887.0 AB Familjebostäder, Group 277 1,691.0 667.0 13,841.0 8,380.0 7.6 60.5 1,163.0 AB Stockholmshem, Group 284 1,996.0 165.0 16,300.0 8,431.0 2.0 51.7 1,413.0 DISTRICTS COUNCILS Micasa Fastigheter i Stockholm AB 69 998.0 -21.0 7,107.0 135.0 0.9 1.9 392.0 No. Budget net Net outcome Change in Deviation Outcome net Stockholms stads Bostadsförmedling AB 76 93.0 8.0 63.0 9.0 1,055.3 14.6 1.0 Employees expenses, SEK excl. income income fund, outcome 2013, investments, Skolfastigheter i Stockholm AB, SISAB 173 2,024.0 -22.0 8,760.0 243.0 0.9 2.8 770.0 million funds, SEK SEK million SEK million SEK million Stockholm Vatten AB, Group 377 1,311.0 -65.0 8,236.0 193.0 0.7 2.3 644.0 million Stockholms Hamn AB, Group 143 724.0 106.0 2,035.0 537.0 4.5 27.1 438.0 Rinkeby-Kista 1,246 -1,296.5 -1,277.6 0.9 19.8 -4.4 AB Stokab 93 712.0 175.0 2,164.0 689.0 7.1 31.8 172.0 Spånga-Tensta 925 -991.8 -990.8 -0.5 0.5 -13.2 Stockholms Stads Parkerings AB, Group 73 496.0 47.0 759.0 103.0 4.3 13.6 43.0 Hässelby-Vällingby 1,507 -1,591.2 -1,572.2 -11.8 7.2 -14.9 Stockholms Stadsteater AB 384 134.0 -286.0 380.0 2.0 Neg 0.5 17.0 Bromma 1,493 -1,298.8 -1,289.4 -3.4 6.0 -11.3 Stockholm Globe Arena Fastigheter AB, 16 25.0 -156.0 4,077.0 461.0 Neg 11.3 896.0 Kungsholmen 1,147 -1,052.9 -1,082.5 10.7 -18.9 -14.2 Group Norrmalm 827 -973.1 -965.4 -3.6 4.0 -12.1 S:t Erik Försäkrings AB 6 116.0 0.0 328.0 106.0 0.0 32.3 0.0 Östermalm 885 -1,194.5 -1,172.1 -1.4 21.1 -6.0 S:t Erik Livförsäkring AB 4 86.0 90.0 2,019.0 451.0 neg 22.3 193.0 Södermalm 1,672 -2,029.4 -2,020.1 0.1 9.4 -14.1 Stockholms Business Region AB, Group 74 246.0 2.0 153.0 45.0 249.3 29.8 0.0 Enskede-Årsta-Vantör 2,212 -2,092.1 -2,088.3 -2.5 1.4 -11.7 S:t Erik Markutveckling AB, Group 4 246.0 30.0 2,232.0 47.0 1.6 2.1 84.0 Skarpnäck 733 -1,007.6 -1,009.7 3.1 1.0 -9.0 Other companies, dormant 13.6 13.6 Farsta 1,334 -1,355.5 -1,353.4 -1.4 0.6 -11.2 Other majority-owned limited compa- Älvsjö 662 -534.3 -530.4 -0.2 3.6 - 4.1 nies Hägersten-Liljeholmen 2,053 -1,655.8 -1,655.4 0.2 0.6 -17.8 Mässfastigheter i Stockholm AB, Group 241 466.5 -26.2 1,140.0 304.0 neg 26.7 135.9 Skärholmen 956 -1,007.4 -988.0 -6.6 12.8 -7.9 Total limited companies * 2,564 13,877.5 4,766.8 108,107.6 52,938.6 8,276.9 Total City District Councils 17,652 -18,080.9 -17,995.1 -16.5 69.3 -151.8 * The totals do not relate to the consolidated financial statements (Municipal Group), but only to the sum of the constituent companies. ** Equity is expressed here as the sum of restricted and non-restricted equity according to the balance sheet, and 78 % of untaxed reserves. FOUNDATIONS AND STATUTORY JOINT AUTHORITIES *** Interest on total capital is calculated as follows: Surplus after financial items plus interest expenses divided by average balance-sheet total. No. City’s contri- Other operat- Operating Other income/ Surplus for Bal- **** The equity/assets ratio is calculated as follows: Equity and 78 % of untaxed reserves divided by total assets. of employees bution, ing income, expenses, expenses net the year after ance-sheet SEK million SEK million SEK million incl. deprecia- appropria- total, tion, SEK tions, SEK million million SEK million

Foundations* Stiftelsen Barnens Dag 63 41.1 -39.0 -2.0 0.6 61.5 Stiftelsen Hotellhem i Stockholm 124 27.0 120.0 -173.0 0.9 0.8 80.7 Stiftelsen Stockholm Water Foundation 2 4.5 -3.4 3.6 0.2 27.2 Stiftelsen Strindbergsmuseet 9 5.1 4.1 -8.7 -0.7 2.7 7.1 Total foundations 198 32.1 169.7 224.1 1.8 4.3 176.5

Statutory joint authorities Greater Stockholm Fire Brigade 748 366.4 244.9 -532.8 -54.2 24.3 718 Annual Financial Statements Financial Annual Annual Financial Statements Financial Annual *Foundations to which the City appoints at least half of the Board members.

106 the city of stockholm’s annual report 2013 the city of stockholm’s annual report 2013 107 FIVE-YEAR OVERVIEW Key figures for committees 2009 2010 2011 2012 2013

General EDUCATION ACTIVITIES Population 829,417 847,073 864,324 881,235 897,700 national share, percent 8.9 9.0 9.1 9.2 9.3 Pre-school 2013 2012 Employment rate, ages 15–74 (LFS): Full-time university-educated employees in the pre-school with a background in education, public pre-school, % 40.1 40.4 percentage of the entire population 54.6 54.3 54.5 54.8 56.0 Full-time university-educated employees in the pre-school with a background in education, independent pre-school, % 34.1 33.5 percentage of population aged 15-74 72.1 71.5 71.7 72 73.6 Number of children enrolled per full-time employee in pre-school, public pre-school 5.0 4.9 Unemployment rate, percentage of population aged 15–74 6.6 6.8 6.7 7.0 6.6 Number of children enrolled per full-time employee in pre-school, independent pre-school 5.0 5.0 Taxable income, SEK million* 171,670 175,785 182,185 191,270 201,165 Elementary school 2012/2013 2011/2012 per resident, SEK** 206,976 207,521 210,783 217,047 224,089 Average merit value in grade 9, public schools 222.4 221.9 national average for the same, SEK 171,481 172,379 174,818 178,669 184,123 Average merit value in grade 9, independent schools 238.3 236.0 Total municipal tax rate: Pupils in grade 9 achieving their targets in all subjects, public schools, % 75.2 74.6 Stockholm, SEK 29,580 29,580 29,580 29,645 29,495 Pupils in grade 9 achieving their targets in all subjects, independent schools, % 80.3 79.9 Of which the City: 17.48 17.48 17.48 17.48 17.33 Upper secondary school 2012/2013 2011/2012 assemblies - - - - - Residents aged 20 who have completed upper secondary school education, % 70 70 County Council 12.10 12.10 12.10 12.10 12.10 Beginners on 1 October 2009 who completed the programme within 4 years (excl. induction programmes), public schools, % 81.1 83.5 Burial fee 0.07 0.07 0.07 0.065 0.065 Beginners on 1 October 2009 who completed the programme within 4 years (excl. induction programmes), independent schools, 78.1 78.3 Total municipal tax rate, national, SEK 31.52 31.56 31.55 31.60 31.73 % Consumer price index, annual national average (1980 = 100) 299.01 302.47 311.43 314.20 314.06 Average grade points, public schools 15.0 15.1 Inflation (annual average), percent -0.5 1.20 3.0 0.9 0.0 Average grade points, independent schools 14.4 14.6 The City’s operations Pupils with basic eligibility for education at university/college, public schools, % 89.7 89.2 Change in equity for the year, SEK million 120 948 881 3,037 3,444 Pupils with basic eligibility for education at university/college, independent schools, % 85.7 87.0 Surplus for the year in accordance with balanced-budget requirement, 9 343 679 2,318 2,286 SEK million Operating costs, SEK million 39,594 41,178 42,372 43,276 44,502 2013 2012 Operating revenues, incl. taxes and general government grants, SEK 40,246 43,262 44,174 44,503 45,674 SUPPORT AND SERVICES FOR PEOPLE WITH DISABILITIES million Cost per resident aged 0-64, SEK 4,357 4,149 Assets, SEK million 89,129 87,790 97,064 103,256 112,809 Collective housing and housing for children, average cost per day, SEK 2,855 2,742 per resident, SEK 107,460 103,639 112,458 117,335 125,841 Daily activities, average cost/day, SEK 1,153 1,122 Liabilities, SEK million 40,807 38,520 46,913 50,067 56,176 of which provisions 10,908 12,102 12,964 12,852 13,695 liabilities per resident, SEK 49,200 45,474 54,353 53,310 62,666 2013 2012 Equity, SEK million 48,322 49,270 50,151 53,188 56,633 CARE FOR THE ELDERLY per resident, SEK 58,260 58,254 58,105 60,440 63,176 Population aged 65-79 with contributions per month, % 7.3 7.2 Equity/assets ratio, % 54 56 52 52 50 Population aged 80 and over with contributions per month, % 50.6 49.7 No. of employees approx. 39,677 37,559 36,734 36,530 36,280 Cost (gross) per hour for home help in ordinary housing, SEK 333 320 full-time equivalents, approx. 37,621 35,709 35,040 34,775 34,644 Salaries and related expenses, SEK million 16,724 16,449 16,055 16,052 16,313 Majority-owned limited companies’ operations*** INDIVIDUAL AND FAMILY CARE Number includes companies/groups 20 20 20 19 18 Children and young people 2013 2012 Balance-sheet total, SEK million 88,698 90,142 95,968 101,053 108,108 § 12 accommodation – number of days per person 113 100 Revenues, SEK million 14,270 13,333 13,091 13,564 13,874 HVB accommodation – number of days per person 114 106 Profit after tax, SEK million 6,782 5,626 826 2,519 1,040 Emergency accommodation – number of days per person 110 111 Equity, SEK million 46,320 51,170 51,744 53,725 52,939 Foster homes – number of days per person 283 276 Investments (gross), SEK million 9,876 8,378 8,758 9,489 8,279 Adults (including unit for homeless people) 2013 2012 No. of employees, converted to full-time equivalents 2,784 2,734 2,498 2,507 2,564 Salaries, SEK million 1,193 1,181 1,163 1,197 1,238 HVB accommodation – number of days per person 85 79 Care for drug abusers/compulsory care – number of days per person 113 113 * Refers to the year before. Foster home care – number of days per person 216 214 ** Refers to the population in year t and taxable income in year t-1. Children and young people 2013 2012 *** The totals do not relate to the consolidated financial statements (Municipal Group), but only to the sum of the constituent companies. § 12 accommodation, net cost per day of care, SEK 6,651 6,914 HVB, net cost per day of care, SEK 2,404 3,130 Emergency on-call accommodation, net cost per day of care, SEK 1,444 1,541 Foster homes, net cost per day of care, SEK 1,057 1,055 Social psychiatry (including unit for homeless people) 2013 2012 Accommodation with special services, net cost per day of care, SEK 539,566 482,082 Family care/HVB board and lodging 354,818 313,525

FINANCIAL ASSISTANCE 2013 2012 Recipients of assistance per month as a percentage of the population, % 2.0 2.1 Household assistance for self-sufficiency, percentage of all households receiving assistance, % 15.6 17.7 Annual Financial Statements Financial Annual Annual Financial Statements Financial Annual

108 the city of stockholm’s annual report 2013 the city of stockholm’s annual report 2013 109 CULTURE AND SPORT STAFF

Public recreation activities 2013 2012 Staff employed by the City’s administration 2013 2012 Net cost per hour open, excl. premises, SEK 1,168 1,170 Proportion of permanent employees, % 88.3 89.1 Net cost per hour open, incl. premises, SEK 1,364 1,366 Proportion of full-time employees, % 86.3 85.4 Visitor statistics 2013 2012 Staff turnover, % 4.8 5.3 Number of visits to libraries, total visits including web visits 11.3 9.8 Proportion of women managers in relation to the proportion of women employees, quota 0.95 0.94 Total number of book loans at municipal libraries per resident, city library (including all media) 3.7 4.8 Proportion of foreign-born managers in relation to the proportion of foreign-born employees, quota 0.39 0.39 Stockholm School of the Arts – number of pupil places (age 6-22) in paid activities 15,250 16,370 Short-term absence, % (Number of hours off sick, days 1-14, in relation to the total agreed working period) 1.97 1.91 Number of visiting children and young people aged 0-22 in all activities within the Culture Committee 392,101 409,958 Long-term absence, % (Number of hours off sick, day 15 onwards, in relation to the total agreed working period) 3.56 3.44 Number of young people who have completed their own event/project within the Culture Committee’s activities 1,150 820 Number of visits by children and young people to performances at Stockholm’s Stadsteater 149,810 102,236 2013 2012 Utilisation of sports halls 2013 2012 ENTREPRENEURS (NUMBER) Large halls (20x40), proportion of bookable time booked, % 88 87 Start-up (newly registered) companies in the City 12,435 12,172 Other halls, proportion of bookable time booked, % 65 64 Corporate bankruptcies in the City 1,642 1,682 Net cost per visit 2013 2012 Swimming pools and swimming pool sections at combined swimming/sports halls, SEK 33.87 21.51 Association-run facilities 2013 2012 URBAN ENVIRONMENT Number of facilities that are completely or partially run by associations or have some activities in a facility that is 60 57 run by an association. Cost per square metre, SEK 2013 2012 Winter road clearance surface 9.0 9.0 Maintenance of snow-free park land 2.0 2.0 Park operations/Park maintenance 6.8 7.1 TRANSPORT

Operation and maintenance 2013 2012 Operation and maintenance, SEK million 669.5 717.2 of which streets, SEK million 55.1 77.2 of which work on bridges, concrete and steel, SEK million 50 64.8 of which public lighting, including cables and fittings, SEK million 127.1 142.9 Parking/accessibility 2013 2012 Correctly parked vehicles which paid the fee, % 78.2 74.8 Correctly parked vehicles, including those which did not pay the fee, % 94.5 94.7

BURIAL

Average cost 2013 2012 Net cost per resident of burial operations, SEK 142 141 Maintenance cost of individual graves, SEK 685 680

ENVIRONMENTAL AND HEALTH PROTECTION

Percentage of objects inspected during the year 2013 2012 All inspection areas, % 47 39 Environmentally hazardous activities, % 61 58 Health protection, % 28 17 Food, % 79 81 People of Stockholm URBAN DEVELOPMENT

Time from application to decision – by business area 2013 2012 Building permits (days) 39 69 STOCKHOLM COMPARED TO THE REST OF THE COUNTRY STOCK- SWEDEN Detailed development plan, simplified procedure (days) 239 245 HOLM Detailed development plan, normal procedure (days) 879 752 Residents aged 65 or older 14.3 % 19.4 % Property registration* (days) 370 225 Residents aged 0–15 17.7 % 18.1 % Accommodation adaptation* (days) 60 41 Residents with a foreign background * 44.3 % 26.2 % Residential construction 2013 2012 Average age at birth of first child 31.3 29.0 Housing/development rights in detailed development plans that have gained legal force 3,890 3,075 Average number of children per family ** 1.79 1.90 New housing under construction 5,372 3,181 Children (aged 0-14) with a foreign background * 37.8 % 25.0 % Completed new housing 3,604 4,356 Children aged 1-5 in child care, total 83 % 84 % Percentage of privately run pre-school places 35 % 20 % Pupils in grade 9 eligible to enrol in the vocational programme of an upper secondary 88.7 % 87.6 % school *** * Individuals who are foreign-born PROPERTY 2013 2012 Grade points (average) at grade 9 *** 227 213.1 or native-born with two for- Surplus after financial items plus interest expenses in relation to the balance-sheet total, % 8.14 4.62 Upper secondary school pupils of the total number of residents aged 16-19 **** 73.4 74.3 eign-born parents. Vacancy rate, % 3.6 3.2 Low level of education age 25-64 (not upper secondary school) 10.4 13.6 ** Aged 0–17. Rental rate – Industry, SEK/sq.m. 1,094 970 High level of education age 25–64 (college) 57.1 40.5 *** Refers to public and inde- Rental rate – Offices, shops, restaurants, SEK/sq.m. 1,403 1,423 Employment rate age 15–74 73.6 65.7 pendent schools located in the Operating expenses in relation to the gross area, SEK/sq.m. 406 355 Employment by industry: municipality. Cost of planned maintenance in relation to the gross area, SEK/sq.m. 145 117 Business services, ICT, finance and real estate activities 38.8 18.7 **** Pupils in the national reg- * Outcomes for 2012 and 2013 are not fully comparable as the outcome for 2012 relates to the median and 2013 to the mean. Trade, transport, hotels and restaurants 21.0 20.5 ister on 15 October or immediate Healthcare and social services 9.3 16.1 weekday. Average life expectancy, men 80.6 79.7 ***** Refers to workplaces in the Annual Financial Statements Financial Annual Annual Financial Statements Financial Annual Average life expectancy, women 84.2 83.6 municipality Average age 38.8 41.2 (daytime population).

110 the city of stockholm’s annual report 2013 the city of stockholm’s annual report 2013 111