City of Gothenburg Annual Report 2018
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City of Gothenburg Annual Report 2018 Photo: Lo Birgersson Sustainable1 city – open to the world Chairman of the City Executive Board, Ann-Sofie Hermansson, reflects on the past year. Photo: Lena Dahlström The Chairman of the City Executive Board reflects on the past year 2018 was an interesting year for Gothenburg, and in many respects a positive one. Following a period of steady upshift for the city, the next 10–15 years focus on realising the major development boom in earnest. In what remains a strong economy, important strides forward were taken in areas such as infrastructure, urban development, personnel, democracy, and trade and industry. A flourishing economy reason to expect weaker economic development for Although various other parts of Sweden began seeing Gothenburg too, although when and how is unclear. increasing signs of economic downswing, the economy in Gothenburg continued to flourish. Development Green light for vital infrastructure was characterised by the patterns established over Work on the West Link is now finally in full swing, the past few years: dynamic growth, strong exports, after a long period of doubt. The first sod has been a higher number of visitors, declining unemployment cut and work has begun at Haga and Korsvägen, after and less of a need for income support. There is good efforts to stop the project by legal means eventually 2 City of Gothenburg | Annual Report 2018 foundered. The focus from now on will therefore be Strategic efforts in trade and industry fully on the construction process. Since the Marie- While trade and industry continued to steam ahead, holm Tunnel, Hising Bridge and over-decking of the the City took a clearer approach to its efforts to E45 highway are already well under way, the main promote this key area. The strategic business pro- pieces of the West Sweden Package are now gradually gramme, which was adopted during the spring, will alling into place. The government’s approval of consolidate coordination, planning and delivery on part-funding for deepening of the shipping lane in the City’s part across a wide array of trade, industry the Port of Gothenburg and a modern railway on and enterprise-related issues. The programme’s the Göteborg–Landvetter–Borås route was excellent premise is to help create 120,000 new jobs in the news. This investment is absolutely crucial to the Gothenburg region up to 2035. This is an ambitious future development of the transport system. Målbild yet realistic target. Taking the hospitality industry Koll2035 – the public transport programme for the specifically, the positive trends that have character- core network in Gothenburg, Mölndal and Partille — ised developments for a couple of decades continued. has now been adopted following a long and thorough The summer featured a remarkable range of fine process, and means that a clear framework is now in events, with the Volvo Ocean Race, Nordea Masters place for extension of the regional infrastructure. and EuroPride + Gothenburg Culture Festival standing out this year in particular. A political Building boom agreement was reached during the spring to build In addition to infrastructure, for some time there has ultra-modern replacements for Scandinavium, Lise- also been a real construction boom in the housing bergshallen and Valhallabadet within the framework sector. With construction having started on many of the upgrade plan for the entire event zone. This is new projects, at the end of the year there were some a large-scale project that would open up brand new 7,300 new homes under construction. Gothenburg opportunities for locals and visitors alike. is therefore now seeing a good rate of development. Vital democracy With over 53,600 homes now in different stages of planning and extension, the lack of housing can start There were some concerns in the run-up to the 2018 being dealt with in earnest in the not too distant elections. The outcome, from a general democratic future. Having said that, volume is not the only perspective, was however very good. There were no parameter in play. Urban development also has to real problems or disruptions. In addition, democracy- be about reducing gaps and breaking segregation. promoting efforts produced good results. Ahead of This requires extensive, mixed homebuilding in the the elections, the City conducted various activities suburbs. With the public interest Framtiden group to encourage more people to vote. Particular efforts in a lead role, an ever better mix of housing forms is were made in areas with low turnout historically. now being built and planned, Gårdsten, Selma Stad There was also a particular focus on first-time voters. and Gamlestaden being good examples. Turnout in the municipal elections was 79%, an increase of 1.7 percentage points on 2014. It was Better working life especially pleasing to see voting increase in areas that During the year, there was an important break in have long had the lowest turnout. trend among the City’s almost 56,000 employees. Ann-Sofie Hermansson (Soc. Dem.) For the first time since 2010, sick leave fell on the Chairman of the City Executive Board previous year. At 8.6% it is still high, but the devel- opment does suggest that increasingly strong efforts regarding the working environment are starting to have an impact. The employee survey conducted at the end of the year substantiates this positive view. The survey also shows improved results overall. In virtually all areas, employees feel that the working environment has improved or remains unchanged. All of this is promising. It is impossible to overstate how important it is to the City to have happy, healthy employees. City of Gothenburg | Annual Report 2018 3 The City of Gothenburg Annual Report is the City Executive Board’s report to the City Council on overall operations and finances for the year. It is also intended for external stakeholders such as lenders, suppliers and other public authorities, as well as for residents of the city. The Annual Report is produced by the City Management Office for the City Executive Board. By way of introduction in the Annual Report the Chairman of the City Executive Board in 2018, Ann-Sofie Hermansson, gives a summary of the past year. This is followed by an outline of the City of Gothenburg’s organisation, assignments and future challenges. The City of Gothenburg Annual Report is then divided into five blocks: How to read the City of Gothenburg Annual Report Administration Report 1 pages 11–37 The first block contains the Administration Report, which must be included in the Annual Report in line with the Accounting Act. It is a summary with a focus on es- sential parts of the City’s finances and activities. To begin with it outlines important decisions and events during the year, along with an assessment of the future for the City of Gothenburg based on a strategic analysis. This is followed by a presentation of how well the City Council’s goals are judged to have been accomplished, and a follow-up of assignments from the City Council’s budget. There is also a description of the development work to better capture citizens’ views in the democratic process- es, and of efforts to clarify the City’s management processes. This section also in- cludes an outline of issues and developments in personnel-related matters, and finally there is a summary financial analysis of the Municipality and combined accounts. Activities of the City of Gothenburg 2 pages 38–66 This block reports some of the activities conducted by the City of Gothenburg’s 30 or so committees and its 20 or so groups and companies during the year. The block is divided into different areas of activity, taken from the City Council budget. In each area, important events and trends are described from different perspectives. Each area concludes with a look at key future issues. 4 City of Gothenburg | Annual Report 2018 Gothenburg Municipality Financial analysis 3 pages 67–84 The term Gothenburg Municipality refers to the committees and central municipal items. The block begins with a financial analysis of the Municipality’s accounts and a report on the concepts of good financial management and the balanced budget requirement. The block also contains a compilation of key financial figures, and ends with a brief description of the financial results of the district committees and the departmental committees, followed by the Municipality’s operational accounts and investment accounts. Combined accounts financial analysis 4 pages 85–98 In the municipal sector, Group accounts are referred to as combined accounts. In addition to the Municipality, the Group comprises the municipal companies and the joint statutory authorities and coordination associations. This block begins with a financial analysis of the accounts. There is then a summary analysis of Göteborgs Stadshus AB and its clusters with a presentation of earnings and total assets, as well as the companies’ investments. There is also a report on the management of foundations and sponsorship in the City of Gothenburg during the year. In the “Fi- nancial monitoring and risk management” section, an analysis is then made of the City’s financial commitments in the form of borrowing and the like. Municipality accounts and consolidated accounts 5 pages 99–123 The final block looks at the Municipality’s and the combined income statement, balance sheet and cash flow statement along with accompanying notes. It also de- scribes the accounting principles applied by the City of Gothenburg and defines a number of terms used. City of Gothenburg | Annual Report 2018 5 Sustainable city – open to the world Gothenburg is Sweden’s second largest city, with a population of just over half a million.