rePORT
Annual report
and statement
of accounts
2015
TABLE OF CONTENTS
Summary .......................................................................................................................4
A word from the chairman of the City Executive Board ............................................6
The economic situation ................................................................................................8
The municipality’s economy ........................................................................................9
The result ............................................................................................................................................... 9
Balanced budget requirement .....................................................................................................10
Restoring the negative balanced budget requirement result 2014 ................................11
Provisions to the profit equalisation reserve ...........................................................................11
Financial objective ............................................................................................................................11
Budget outcome................................................................................................................................12
Forecast accuracy ..............................................................................................................................17
Pension cost ........................................................................................................................................17
Investment activity ...........................................................................................................................18
Financial position ..............................................................................................................................21
Anticipated development ..............................................................................................................23
The staff ...................................................................................................................... 24
Total number of staff........................................................................................................................24
Personnel costs ..................................................................................................................................25
Absence through illness .................................................................................................................25
Personnel supply ...............................................................................................................................26
The City Council’s objectives in the 2015 budget ................................................... 28
Target area 1 – A young, global city ...........................................................................................28
Target area 2 – A city for work and business............................................................................29
Target area 3 – A city for children and youth...........................................................................29
Target area 4 – An open city ..........................................................................................................30
Target area 5 – A city for everyone ..............................................................................................30
Target area 6 – A safe and accessible city .................................................................................31
Target area 7 – A creative city .......................................................................................................31
Target area 8 – An ecological a sustainable city .....................................................................32
Target area 9 – A city with good work conditions .................................................................32
2
The population .......................................................................................................... 34
The activities .............................................................................................................. 36
City executive board ........................................................................................................................36
Plan and city environment .............................................................................................................37
Educational activity ..........................................................................................................................40
Culture and leisure............................................................................................................................46
Health and social care ......................................................................................................................47
Activities concerning displaced people ....................................................................................54
Area programme for a socially sustainable Malmö ...............................................................57
The municipality’s companies .................................................................................. 58
Turnover and result ..........................................................................................................................58
Development in the bigger companies.....................................................................................59
Financial reports ........................................................................................................ 66
Overview of net result .....................................................................................................................66
Profit and Loss Accounts ................................................................................................................67
Balance Sheet .....................................................................................................................................67
Cash flow statement.........................................................................................................................69
Accounting principles......................................................................................................................70
Notes .....................................................................................................................................................77
Financial risk-handling and follow-up .......................................................................................95
Operating report ............................................................................................................................ 100
Investment accounts..................................................................................................................... 101
3
SUMMARY
Profit for the year was SEK +563 m and thus the full deficit from 2014 can be restored. In
addition, it is recommended that SEK 185 m be allocated to the profit equalisation reserve.
The economic development for the year has entailed the following:
• that the municipality’s targets for economically sustainable development have been
reached
• that the municipality’s interest-bearing net liability was reduced by SEK 26 m to SEK
550 m
• that more than half of the year’s investments and land readjustments could be
financed with funds from the ongoing activity.
Follow-up of the nine city council’s objectives has taken place, according to the new
structure for governing, management and development from the year 2015. An assessment
has been made based on how committees and wholly-owned municipal companies have
contributed to the development heading towards goal fulfilment. The city council’s
objectives are long-term in character and follow-up work is under development, which
means it is difficult to assess gaol fulfilment based on the committees’ analyses. Cooperation
is a watchword, which has made an impact on the committees. Here great efforts are being
made overall to improve goal fulfilment by means of cooperation within and outside of the
City of Malmö.
All educational committees are reporting a surplus and it’s been possible for the additional
costs for refugee reception for the year to have been financed within the respective
committees’ financial scope.
The number of children and pupils continues to grow strongly. The preschool activity has
expanded strongly in recent years, but the pace and increase is now beginning to level out.
The compulsory school activity, however, is at the beginning of a period of growth. The
strong expansion involves great focus on the access to appropriate premises and personnel
supply.
Continued focus is also put on quality and equality issues within the educational activities,
but even if development efforts are underway, great challenges remain in this area.
Four of five city district committees are reporting a deficit and the total budget discrepancy
for the committees amounts to SEK -93 m, despite intensive efforts with action plans during
the year. The biggest deficit arose in Healthcare and social care with SEK -62 m. The deficits
for the City Districts include a deficit of SEK 51 m related to the costs for homelessness,
which are not included in the City District committee’s budget responsibility. Furthermore,
additional costs for refugee reception of around SEK 28 m are included, for which the
committees have been released from budget responsibility for 2015.
Costs for homelessness increased and amounted to SEK 260 m, which was 24 % more than
the previous year, which can be compared to an average increase rate of 13% per year during
the last 10-year period.
4
The average number of households per month which received financial assistance, increased
by 160 and amounted to 10,000, an increase by just under 2%. This means that the slowing
down, i.e. lower increase seen between 2013 and 2014 continues. In the years before 2013,
the average rate of increase was 7-8%.
The net costs for health care and social care for the elderly and those with disabilities for
2015 amounted to a total of SEK 4,045 m, which is an increase in comparison to 2014 by
SEK 120 m or 3 %. Considering the underlying price and salary development during the year
of more than 2%, such a cost trend can be regarded as moderate.
The activities of home-help service, short-term care and special housing made up 66% of
costs in healthcare and social care. Net costs for these increased by 0.9% in 2015. If
disregarding the price and salary development of recent years, the net costs for these
activities are on par with the costs for 2006. At the same time, the number of users in these
activities increased by almost 6 %. The analysis of economy and quality in healthcare and
social care, carried out during 2015, also indicates a number of factors in addition to cost
development as challenges ahead. These include, for example, governing and management of
the activity as well as securing equality and quality.
Social care for people with disabilities according to LSS, consists mainly of housing with
special service, daily activity and personal assistance as approved by the city of Malmö as
well as personal assistance acc. to SFB as approved by the Swedish Social Insurance Agency.
The total costs for the LSS-activities increased by 6 % compared to 2014, primarily as a
result of the extension of housing with special service as per LSS.
In those instances where statistical information can be shown according to gender
distribution, and where it is relevant, this has been done. Developmental work is ongoing
with regard to the objective of showing relevant statistics broken down according to gender.
5
A WORD FROM THE CHAIRMAN OF THE CITY EXECUTIVE
BOARD
We are putting an eventful year behind us, to say the least. The result for 2015 is very
positive, with a balance in hand of SEK 563 m. This allows us to restore the entire deficit
from 2014. Malmö also once more was given maximum ratings by the world’s leading credit
rating institutes. This shows that financial governance is good.
The previous year cannot be summed up without mentioning refugee reception. Malmö
became the centre of attention thanks to its geographical location and intense efforts
regarding the urgent refugee situation. The city activated its crisis management group for
handling the tense situation as many more children arrived on their own than normally. A
large number of new staff were recruited within a short period and several accommodation
locations opened up. The refugee situation made it necessary to revise the annual population
forecast for it to be possible to be applied in future planning. Planning which allows for an
extraordinary increase in population and which has required a large addition to be made to
the budget for 2016 in order to guarantee welfare for all Malmö residents.
The positive result with rising results in Malmö’s schools continued for the fifth consecutive
year, and merit ratings are increasing more than nationally. Work is continuing and the focus
is also on increasing the number of students qualified to attend upper secondary school. As
the population continues to grow with children in the lower age groups, work on expanding
both preschools and schools has been in focus. In total, about 200 preschool places and
almost 900 school places have been created during 2015, by means of rebuilding,
establishing pavilions and external tenancy.
In a growing Malmö, more sustainability and public transport are also important.
Malmöexpressen is one example of such an investment which also contributes to linking up the
city’s east and west parts in creating a socially sustainable city. Transport on the
Malmöexpressen has increased strongly, in direction of Västra Hamnen the number of
passengers grew by 30 percent, while the number of passengers in the opposite direction
grew by 23 percent. In addition, the air quality on Amiralsgatan also improved.
The traffic junction Spillepengen is one of the region’s most important road network
junctions, with around 40,000 vehicles per day. A safe traffic environment is an evident part
of sustainable city development and Norra hamnen is the gateway to Malmö and with the
new traffic junction Spillepengen, we have created the key to Norra hamnen.
Housing construction gained speed during the year, and gratifyingly enough also in areas in
which no construction had taken place for a very long time. One important example is
Trianon’s start of construction at Lindängen. This is the first time in 37 years that
construction is taking place at Lindängen and it goes to show that building good, cheap
housing in the Million Programmes is possible. And this in combination with making already
existing properties more energy-efficient.
An in-depth analysis of economy and quality in healthcare and social care has been carried
out. The aim is to secure long-term development of quality and increased equality. Efforts to
6
reduce the number of hourly paid hours in favour of more permanent forms of employment
have continued and resulted in a reduction of 20 percent.
During the year, an additional venue for meetings and events was opened – the city’s new
landmark Malmö Live. The block was inaugurated with a large outdoor event, which was
open to all Malmö residents at no cost. We also inaugurated the new Hylliebadet, which is a
real family indoor pool with various activities and water slides. We anticipate the number of
visitors to prosper with more than 1,500,000 hotel nights in Malmö during the previous year.
That is a record for Malmö and a greater increase in percentage terms than other major cities
in Sweden have seen. Malmö is very appreciated as an event-hosting city, and both the
number of visitors and meeting capacities are increasing in a way that is creating many new
job opportunities.
Civil society is playing an incredibly important role for Malmö’s development. During the
year, the city executive board put its support behind a declaration of intent, which is to lead
to intensified cooperation in order to find new and innovative solutions. The aim is to make
the most of the strength that already exists and develop the city, making it more open and
inclusive in accordance with the Malmö Commision’s recommendations.
In the same tenor, we have tested new work models in Meet Malmö 11:11, which is a new way
of working and is ultimately about Malmö City and trade and industry cooperating to achieve
socially sustainable development of the city. Th response has been great and many show
their interest in joining in. Trade and industry are also expanding strongly with both
companies that are growing and several companies that are establishing themselves in
Malmö. For example, IKEA's global office was completed and is now a place of work for
some 1,200 employees and IBM announced that they will relocate their development office
here with around 300 employees.
Malmö is a city in constant motion. Many exciting things happen here and the challenges are
great. I thus want to take this opportunity to express a big and heartfelt thank you to all
those who are contributing to creating a better city, both to live and to work in.
7
THE ECONOMIC SITUATION
The municipality’s biggest source of income are taxes and general state subsidies, which is
why the development of employment and growth is important to the development of the
municipality’s income. The municipality’s costs for labour market efforts and financial
assistance in large part also depend on the economic situation. In the economic report from
October 2015, the Swedish Association of Local Authorities and Regions, SALAR, made the
following assessment of the economic situation:
It is our assessment that the Swedish economy is on its way out of
the slump and that next year the economic trend will reach an
equilibrium. This means that employment, and with that the tax
base this year and next year, will grow relatively fast. At the same
time, extensive immigration and the fast population development
will see the municipalities’ and the county councils’ activities face
great demand.
In the last couple of years, the Swedish economy has been recovering
from the economic slump. Domestic demand is growing fast and
GNP is expected to increase by more than 3 percent this year and
next. The growth in the Swedish economy means that employment
is increasing and unemployment gradually being pushed back. At
the end of next year, the Swedish economy is expected to reach an
equilibrium in terms of the economic trend. Unemployment will
then have dropped to around 6½ percent and the inflation figures
be close to 2 percent.
In the following years, the Swedish economy is expected to be in equilibrium in terms of the economic trend, a
state when neither an economic boom nor slump can be said to exist. Unemployment is at just over 6 percent
and inflation is stable at 2 percent. At the same time, GNP is seeing annual growth of over 2 percent. The
development during these years is not to be understood as a forecast, but as a result of the presumptions made,
including with regard to the development of productivity and the labour market.
This year and next, demand in the Swedish economy will grow quickly. Not least, investments and public
consumption are showing comparatively high growth figures. When the recovery from the economic slump is
over and equilibrium in terms of the economic trend has been reached, it is presumed that growth in
investments will become more normal. Public consumption, however, not least municipal consumption,
continues to grow at a fast pace. The background is the quick population growth. Between the years 2014
and 2019, the number of residents in Sweden increased by 1.3 percent annually on average. That is three
times faster than the average for the last three decades. The main explanation for this difference is the
continued and very extensive immigration of refugees. The fast-growing population means that municipal
activities in form of schools, healthcare and social care need to increase in extent quickly.
During the recovery from the economic slump in 2015 and 2016, employment and with that the tax base are
growing quickly. The municipalities’ and county councils’ tax revenues will then be able to keep up well with
the cost requirements the population growth presents. With the resulting more moderate growth in employment
and tax base, this equation is not as easy to solve.
8
THE MUNICIPALITY’S ECONOMY
The result
Total result for the municipality
Following the negative result of 2014, the development
turned around and the surplus for the year became the
largest since 2009. Profit for the year amounted to SEK
+563 m compared to a loss of SEK -149 m for the
previous year.
The result for 2015 is explained mainly, just under SEK
500 m, by items of temporary or not permanent nature.
These are refunded contract premiums, group contributions to cultural institutions, profits
from property sales and a favourable interest situation for the service committee’s properties.
The actual activities have been mainly carried out within the municipality’s budgeted scope.
The good result for 2015 has brought high tax financing for the year’s investments, which
leads to improved financial elbow-room for the great investment requirements of the
coming years.
The result’s share of taxes and contributions
The year’s result in relation to taxes and general state
contributions amounted to 3.5 %.
During the 2010s, the result has, on average, amounted
to 2 % of taxes and general state contributions. The
chart shows the corresponding five-year average for the
last few years. The low results during the years 20122014 weigh down the average from previous years
which was in the range of 3-4 % of income.
Income
The municipality’s total income during the year
amounted to SEK 20,658 m, an increase of 8.2 %
compared with last year. The biggest source of income
comprised taxes and general state contributions
amounting to SEK 16,243 m, an increase of 6.9 %
compared with the preceding year. The distribution in
percent between the income sources can be seen in the
chart.
Of the municipality’s income from general state contributions SEK 3,946 m constituted
income equalisation contribution which the municipality received as a consequence of its
9
weak tax base. Malmö’s share of tax capacity for the
2014 income year amounted to 85.1 %. This level has
remained unchanged for the last three years.
Ever since the beginning of the 1970s, when Malmö’s
share of the tax capacity amounted to 117 %, the city’s
share has been falling. During the 2000s it increased on
only two occasions, in the 2002 and 2006 income years.
Costs
The municipality’s total costs amounted to SEK 20,095 m, an increase of 4.4 %. Personnel
account for the biggest cost item at c. 54 % followed by procurement of services at over
30 %. The distribution in percent between the types of cost can be seen in the chart below.
Of the municipality’s activities, education is the biggest with a share of 35 % of the
municipality’s costs, followed by healthcare and social care with 22 % of costs, as can be
seen in the chart below on the right.
Balanced budget requirement
BALANCED-BUDGET INVESTIGATION, SEK M
Profit/loss for the year
all capital gains
2015
2014
2013
563
-149
154
-23
-56
-33
certain capital gains acc. to exceptions
0
0
0
certain capital gains acc. to exceptions
0
0
0
unrealised losses securities
0
0
0
cancellation of unrealised losses securities
0
0
0
Profits after balance budget adjustment
540
funds to profit equalization reserve
-205
121
-185
0
funds from profit equalization reserve
0
12
-
exceptional reason RIPS
0
0
106
Balanced budget result
355
Balanced budget deficit from previous year
-193
TOTAL
162
-193
227
0
193
0
Balanced budget result to be restored
-193
-
227
0
0
10
The Profit and Loss Accounts form the
basis for reconciliation with the
municipality’s requirements for
economic balance. According to the
regulations, capital gains are to be
deducted from the result. The result for
2015, adjusted according to the
requirements in the Local Government
Act, amounts to SEK +540 m.
Restoring the negative balanced budget requirement result
2014
For 2014, the municipality reported a balanced budget requirement of SEK -193 m.
According to the municipality act, a negative result shall be restored during the following
three years.
With the result now reported for 2015, it will be possible to restore the entire deficit from
2014 during the year.
Provisions to the profit equalisation reserve
According to the municipality act, there is a possibility to allocate positive results to a profit
equalisation reserve. The profit equalisation reserve can be utilised in the coming years if tax
income is affected negatively as a result of a weaker business cycle.
According to the city council’s guidelines for the profit equalisation reserve, allocation can
take place when the result after balance budget adjustment exceeds 1 percent of taxes,
general state contributions and equalisation. In 2015, 1 percent of taxes and general state
contributions amounted to SEK 162 m. From the result for 2015, SEK 193 m must also be
used to restore the negative balance requirement result for 2014. Under these conditions,
SEK 540 m minus SEK 162 m minus SEK 193 m, i.e. SEK 185 m, can be allocated to the
profit equalisation reserve.
Financial objective
The city council has set the financial objective for Malmö city to have a sustainable financial
development. Sustainability in the economy is measured by the following three indicators.
Based on the reported development of the three indicators, the financial developments can
be described as sustainable based on all indicators today being assessed as lying within the
budgeted level.
•
The result for the year shall amount to 1 % of tax income, general state contributions
and equalisation by 2019, at the latest.
The reported result for 2015 amounts to 3.5 %.
•
Interest-bearing net loans shall amount to max. 30 % of tax income, general state
contributions and equalisation by 2019.
The reported loan ratio for 2015 amounts to 3.4 %, which is a reduction in relation
to the previous year by 0.4 percent.
•
The relation between financial income and depreciations and tax income, general
state contributions and equalisation shall be followed.
The reported capital costs for 2015 amount to 5.1 %, which is an increase of 0.5
percent since the previous year.
11
FINANCIAL OBJECTIVE, SEK M
Proportion of taxes &
government grants
Result
Loan ratio
Depreciation & Interest
2015
2014
2013
2012
3,5%
-1,0%
1,0%
1,4%
-3,4%
-3,8%
2,5%
8,3%
5,1%
4,6%
5,2%
4,5%
Financial objective
During 2015, the financial development
remained within the scope of the
financial indicators. The objective is
long-term, and in order to secure
sustainable financial development over
time, the good results must be
maintained even in the coming years.
Budget outcome
Total budget discrepancy – the municipality
The total budget discrepancy for the year amounted to SEK +563 m. This was generated in
the committees, which are showing a positive discrepancy of SEK 284 m in total, why the
surplus in financing amounted to SEK 279 m in total.
Included in the committees result are the additional costs of approximately SEK 130 m
which were incurred in addition during the year as a result of the increased refugee
reception. The committees have been released from budget responsibility during 2015, with
regard to these additional costs. Part of the deficit accounted for below, in particular with the
social resource committee and the City District committees, is a result of costs related to the
increased influx of refugees during autumn.
In the committees’ budgets there are activities where the committees have been wholly or
partially released from the requirement of suiting the costs to the apportioned municipal
contributions. These activities are financial assistance, homelessness, personal assistance with
decisions from the Social Insurance Office and state contributions for the reception of
refugees. The budget shortfall for these activities amounted in total to SEK 110 m during
the year.
Shown below is a clear presentation of the committees which have major discrepancies as
compared to the municipal contribution allocated.
Chief guardians committee
The chief guardians committee posted a deficit in relation to budget of SEK 8 m, which
corresponds to just over 8 % of the committee’s allocated municipal contribution. The
deficit is mainly the result of an increase in the amount of remuneration for custodians and
higher costs per case. In recent years, cases have become more complex and timeconsuming, resulting in higher remuneration to custodians. The right to renumeration is
statutory, which is why the committee has difficulties in having any influence on the costs.
City executive board
The city executive board reports a surplus for the year of SEK 96 m, which corresponds to
just under 16 % of the municipal contribution allocated. Reasons for the surplus include
damages following the cloudburst Arvid in August 2014 having turned out lower than
estimated, which means that funds earmarked for this purpose were not used. In addition,
12
funds earmarked for various development and research projects have not been utilised as
expected.
Economic assistance
For economic assistance, a deficit is reported for 2015 of just under SEK 11 m. The deficit is
a result mainly of the number of households with economic assistance not having dropped
to the extent expected. During 2014 and 2015, an initiative has been underway with the aim
of getting more Malmö residents to become self-sufficient, which has led to a moderation in
the number of households that have received financial assistance at some stage during the
year.
Service committee
The committee reports a surplus of SEK 67 m. The surplus can be attributed mainly to the
city properties’ activity. The net financial income yields a surplus as a result of the currently
low interest rates and lower investment volume than budgeted. Other factors positively
affecting the result are lower costs for heating and snow clearing.
Technical committee
The committee reports a deficit, excluding sales profits and profits from development
activity, of SEK 13 m. The surplus is explained mainly by temporary items related to ground
assignments while waiting for sale and parking revenue.
Land readjustment profits for the year amount to SEK 304 m, which is SEK 154 m higher
than budgeted. Capital gains, which are not budgeted, yield a surplus of SEK 23 m and are
primarily related to prior freehold land as well as the sale of other land with low original
acquisition values.
City planning committee
The committee shows a surplus from the activity of over SEK 15 m. The city planning
office shows a surplus of SEK 7 m, which is mainly explained by revenue higher than
budgeted. The costs of housing adaptation contributions showed a surplus of SEK 7.7 m,
which is partly due to non-processed cases. Boplats Syd reported a financial surplus of SEK
0.6 m.
Preschool committee
The committee posted a surplus of SEK 7.7 m. The surplus corresponds to c. 0.2 % of the
preschool activity’s total municipal contribution and is due, first and foremost, to measures
taken by the committee to reduce costs for additional amounts for children in need of
special support having taken effect. The activity aimed at children with special needs is also
showing a surplus, as fewer children have been using this activity as compared to what was
planned.
Comprehensive school committee
The committee reports a surplus of SEK 13.7 m, which makes up c. 0.3 % of the
committee’s municipal contributions. The estimated additional cost for refugee reception,
which during the year amounted to c. SEK 33 m, could be financed within the committee’s
13
financial scope. Larger groups of pupils and condensed use of premises have contributed to
the financing.
Upper secondary school and adult education committee
The committee reports a surplus for the year of SEK 11.2 m. The surplus relates to labour
market measures which are showing a surplus of SEK 26 m. other areas of activity are
showing negative results. Additional costs as a result of the refugee situation related to
Swedish for refugees (sfi) and for newly arrived with the language introduction could be
financed within the committee’s financial scope during the year. Reasons for the surplus in
the labour market sector include activity adjustments ahead of 2016.
The average number of pupils from Malmö in upper secondary and upper secondary, special
schools was about 400 less than the number on which the demographics compensation in
this year’s budget was based on, while the number of youths in the municipal activity
responsibility was c. 300 less than budgeted.
Social resource committee
The social resource committee resursnämnden posted a deficit to the budget of SEK 14 m.
the main reason for the deficits is the high increase in children arriving alone to Malmö
during the year. At the same time, the Swedish Migration Board changed its assessment
criteria for trying to recover the municipality’s costs for refugee children arriving alone,
which means that a majority of the activity’s costs will likely not be compensated. The
committee does, however, have surpluses in other activities which reduce the deficit,
including as a result of vacant posts and planned activities which have been postponed.
In addition to its normal activities, the committee is also in charge of two areas which have
been completely released from budget responsibility. Personal assistance, according to the
Social Insurance Act, with decisions by the Swedish Social Insurance Agency, shows a
deficit of SEK 3.6 m as a result of an increase in the number of cases and retroactive
debiting for decisions that include assistance, carried out during 2014. Compensation from
the Swedish Migration Board for permanent care of refugees slightly reduces the deficit.
Government grants to refugees shows a deficit of SEK 0.3 m as a result of the
compensation from the Swedish Migration Board having turned out somewhat lower than
estimated.
Homelessness
Costs for homelessness increased by 24 % to SEK 260 m compared to 2014. This means a
deficit of SEK 64 m compared to the City Districts’ budget. Of this, 75 %, or SEK 51 m, are
not part of the City Districts’ budget responsibility, according to a decision by the city
council. The table below shows how the deficit is distributed by City District committee.
14
COSTS FOR HOMELESSNESS, SEK M
CD North
Budget
45,5
Outcom e Difference of w hich 25% of w hich 75 %
67,4
-21,9
-5,5
-16,4
CD East
37,7
62,7
-25,0
-6,3
-18,8
CD South
32,7
52,0
-19,3
-4,8
-14,5
CD West
20,3
22,2
-1,9
-0,5
-1,4
CD Inner City
60,1
55,7
4,4
196,3
260,1
-63,7
-17,0
-51,1
Total
City District committees
The City District committees have been responsible for healthcare, individual and family
care, leisure and culture within their respective geographical areas. Four of five City District
committees reported a deficit in relation to the budget, which means that the budget
discrepancy in total amounts to SEK -93 m, despite intensive work on action plans during
the year. When distributed between the City District committees’ areas of responsibility,
healthcare and social care accounts for SEK -62 m, individual and family care SEK -57 m
and other activities. SEK +25 m. the deficits in individual and family care include a deficit of
SEK 51 m related to costs for homelessness, which are not included in the City District
committees’ budget responsibility.
Individual &
fam ily Healthcare & Culture
care social care & leisure
Com .
Service
& other
in % of
Of which municipal
Total, add. costs
contriSEK M
refugees
butions
City District Com m ittees
CD North
-3,4
-6,2
1,1
0,7
-7,9
-4,9
-1,1%
CD East
-0,2
-25,4
1,3
4,4
-20,0
-8,7
-3,2%
CD South
-2,4
-12,7
-1,8
6,8
-10,2
-8,2
-1,3%
CD West
0,1
-6,3
2,6
6,9
3,3
-4,1
0,3%
CD Inner City
0,9
-10,9
0,2
3,3
-6,5
-2,2
-0,7%
-5,1
-61,6
3,3
22,1
-41,2
-28,1
-1,0%
Total
City District North
City District North reports a deficit of SEK 24 m. After deducting a 75 % deficit related to
homelessness, a deficit of SEK 7.9 m remains, of which SEK 4.9 are for additional costs for
increased refugee reception. The deficit arises mainly in the care and social care activity,
including as a result of a higher number of users than expected needing special housing,
partly as a result of a highe number of more expensive external places. At the same time, the
committee has additional costs for terminating certain places in special housing.
City District East
City District North reports a deficit of SEK 38.7 m. After deducting homelessness, the
deficit is SEK 20 m. Of this, SEK 8.7 m relate to additional costs as a result of increased
refugee reception. The deficit is explained mainly by deficits in the healthcare and social care
activity as a result of a higher requirement for home-help service and short-term care than
expected. The deficit in healthcare and social care is reduced by a surplus in leisure and
culture as well as joint activities.
15
City District South
City District South reports a deficit of SEK 24.6 m. After deducting homelessness, the
deficit is SEK 10.2 m. Of this, SEK 8.2 m are additional costs as a result of increased refugee
reception. Health and social care is the activity area that is mainly responsible for the deficit,
as a result of a higher number of users in home-help service, as well as short-term care and
special housing.
City District West
City District West reports a surplus of SEK 1.9 m. After deducting 75 % of the deficit
related to homelessness, the surplus amounts to SEK 3.3 m. The committee has thus
managed to finance additional costs for increased refugee reception of SEK 4.1 m within the
economic scope allocated. The surplus arises mainly in the activity leisure and culture and
other joint activities. The health and social care activity, however, reports a deficit, partly as a
result of the number of short-term placements of the elderly and the need for short-term
stays and short-term supervision according to LSS having been higher than expected.
City District Inner City
City District Inner City reports a deficit of SEK 6.5 m. Of this, SEK 2.1 m relate to
additional costs as a result of increased refugee reception. The Inner City was the only city
district that reported a surplus regarding homelessness. The committee’s deficit arises mainly
in health and social care, among other things as a result of a higher requirement for shortterm care than expected.
Financing
Finance administration and port installations posted a budget surplus totalling SEK 279 m.
Taxes and general state contributions yielded a deficit to the budget of SEK 59 m.
Personnel expenses and pensions left a deficit to the budget of SEK 19 m in total. This is a
relatively minor discrepancy, as the total cost amount covers c. SEK 2.6 billion. Repaid staff
insurance premiums from 2014 improved the result by SEK 97 m.
The Internal Bank’s result amounted to SEK +37 m compared to budget. The surplus is
explained mainly by increased lending to the municipality’s companies and a lower interest
rate than what was provided for in the budget.
Appropriations at the disposal of the city executive board yielded a surplus of SEK 93 m in
total. These were mainly reserves set aside for the technical committee’s extension
investments which were not drawn on to the extent budgeted. Some reserves set aside for
higher cost item have also remained un-utilised and thus given rise to a surplus.
Thanks to a group contribution in Malmö Stadshus AB, part of the original culture
contribution could be repaid to the finance administration, which yielded a surplus to the
budget of over SEK 130 m.
16
Forecast accuracy
An efficient follow-up and
forecast methodology is a
prerequisite to maintaining
good financial development in
accordance with the
established budget objectives.
Good forecasting accuracy
means that committees and
boards are provided with the
basis for corrective decisions in
respect of anticipated budget
discrepancies.
DEVIATION FROM FORECAST, SEK M
Interim
report Difference
Jan-Aug
32
35
Annual
accounts
Service committee
67
City executive board
96
65
31
Financial assistance
-11
-10
-1
City building committee
15
6
9
Technical committee
13
8
5
176
151
25
11
4
7
10
0
10
6
0
6
-18
-4
-14
Capital gains/Land readjustment profit
Labour market upper secondary & adult
education committee
Comprehensive school committee
Preschool committee
Social resource committee, incl. pers. ass.
Government grants refugees
0
-6
6
-42
-41
-1
Accuracy in the forecast result
Homelessness (75 %)
-51
-40
-11
was lower than the previous
Other committees
12
8
4
year. In connection with the
Financing
279
143
136
interim reports for JanuaryProfit/loss for the year
563
316
247
August, the total budget
discrepancy was forecast as being SEK +316 m. At the time of the final accounts, however,
it amounted to SEK +563, involving a forecast discrepancy of SEK 247 m. The table above
shows how forecast discrepancies are distributed between committees.
City area committees
The discrepancy in financing is due to the group contribution to the culture firms which was
planned and carried out only shortly before the turn of the year.
The negative forecast discrepancy with the social resource committee and the City District
committees is explained primarily as a result of the increased refugee reception during the
autumn months.
Pension cost
Pension costs increase in step with the development of payroll expenses. Of the year’s
accounted costs, SEK 924 m comprise pension costs. Of these, SEK 597 m relate to
pension entitlements which personnel have earned during the year and SEK 29 m financial
costs for the value securing of pension obligations earned after 1997. The table shows the
different elements of the pension costs,
PENSION COSTS, SEK M
and how they changed between 2014
2015
2014
Change
Premium KAP-KL
1
1
0
and 2015.
Defined contribution annual plan
Since the municipality reports pension
obligations in accordance with what is
termed the mixmodel, the disbursement
of pension entitlements earned before
1998 are shown as a cost. During the
year, this cost amounted to SEK 298 m.
454
Pension provisions excl. ÖK-SAP*
116
Pension provisions ÖK-SAP
Pensions paid out and earned before 199
Financial cost
Reduced cost of capital RIPS
Total
)
427
19
26
4
22
298
292
6
29
22
7
0
0
924
843
* ÖK-SAP stands for agreement concerning special contractual
pension (acc. to KAP-KL)
17
27
97
0
81
Investment activity
The level of investment continues to be high with a low degree of tax financing.
Investment activity includes both investments in fixed assets and development properties.
Investment volume
During the year, investment activity amounted to
SEK 1,961 m, which was c. SEK 330 m lower than
the preceding year. During the last five years, the
average investment volume amounted to SEK 1,976
m per year. The chart on the right shows the
development of the corresponding five-year average
for the recent years.
The investment volume has risen steadily in recent
years, but if investments are put in relation to the cost
of the activity, the increase is not as pronounced, as
can be seen in the chart below. During the 2010s, the
investment volume has been at around 11 % of the
activity’s costs.
Sale of assets
The year’s sales amounted to SEK 444 m overall, considerably higher than during the
preceding year when they amounted to SEK 115 m. Of the year’s sales, the greater part,
SEK 369 m, was for development properties.
Financing of investments
How the investment activity is financed has a crucial influence on the municipality’s financial
development and position. Broadly speaking, investments can be financed in three ways: tax
financing through depreciations and surpluses in the ongoing activity, sales of other assets
such as properties or financing by means of financial assets and/or increased debts.
The chart shows that tax financing has dropped while
an ever greater share is being financed through
reduced liquidity and increased indebtedness.
Behind this development are not higher investment
volumes, but ever lower results combined with lower
sales proceeds.
Objects approval
Before commencement of an investment object, the committee shall obtain object approval
from the city executive board if the total gross outlay for the object exceeds SEK 15 m. If
the total gross outlay for the object exceeds SEK 50 m, the City Council shall provide object
approval.
18
During the year, decisions were taken regarding object approval for SEK 665 m. The
following tables show a follow-up of decisions taken in respect of object approval regarding
ongoing and completed investment projects.
OBJECT APPROVAL - TECHNICAL COMMITTEE
Com plete estim ate
Operating consequences
Outcom e
Decision Forecast Deviation
2015 Decision Forecast Deviation
Object
Decision date
Malmöringen
KF 2011-02-17
88,0
102,8
-14,8
74,7
24,1
26,5
Scaniabadet
KS 2012-02-01
47,9
47,9
0,0
8,4
5,3
5,7
-0,5
Public spaces Malmö Live
KS 2012-05-30
43,0
42,0
1,0
31,9
5,5
6,8
-1,3
Millenieskogen
KS 2012-08-15
39,0
40,2
-1,2
39,5
4,1
4,1
0,0
Nobeltorget
KS 2013-01-16
28,9
28,9
0,0
10,3
2,5
2,5
0,0
Local roads and parks in Limhamns location KS 2013-02-06
38,3
38,3
0,0
24,2
0,7
0,7
0,0
Detailed plan 5189 (Indoor pool in
Hyllie)
Extension Norra Hamnen
-2,4
KF 2013-06-18
78,4
78,4
0,0
41,9
9,3
7,8
1,5
KF 2013-08-29
260,0
260,0
0,0
35,7
16,0
16,0
0,0
KS 2013-09-04
37,0
37,3
-0,3
37,3
2,8
2,8
0,0
Bearing capacity rebuilding of streets
KF 2013-09-19
105,5
108,6
-3,1
108,6
8,1
8,1
0,0
Reb Traffic junction Spillepengen
KF 2013-09-19
313,0
313,0
0,0
302,8
18,5
16,7
1,8
Maintenace of bridges on Inner
Ringroad and other bridges from the
60s and 70s
Construction of extended collective
traffic lane on Stockholmsvägen stage
3
Slussplan
KS 2013-09-04
30,0
30,0
0,0
1,7
1,3
1,3
0,0
KS 2013-11-06
16,6
17,7
-1,1
17,1
2,0
1,4
0,6
Vintrie Park
KS 2013-11-06
28,8
29,9
-1,1
26,6
3,4
3,1
0,3
Gyllins Garden and Husie 172-123
KS 2013-11-27
21,3
22,6
-1,3
10,4
1,5
1,4
0,1
Gyllins Garden nature park themed
playround, entrance area
KS 2013-11-27
41,0
41,0
0,0
18,6
5,8
4,0
1,8
Hyllie w aterpark
KS 2013-11-27
27,9
27,9
0,0
32,0
3,2
3,2
0,0
Kvarteret spårvägen
KF 2014-02-27
117,5
129,3
-11,8
79,4
8,6
8,5
0,1
Industrigatan
KS 2014-02-05
25,7
25,7
0,0
2,9
2,3
2,3
0,0
Cycling lane Nobelvägen
KS 2014-02-05
25,9
25,9
0,0
1,1
2,1
2,7
-0,6
Riding facility Klagshamn
KF 2014-04-24
58,0
50,0
8,0
48,6
0,0
0,0
0,0
South Waterpark
KS 2014-04-02
35,5
35,5
0,0
4,0
0,8
0,8
0,0
Posthusplatsen
KS AU 2014-06-23
26,5
26,5
0,0
25,7
2,9
2,9
0,0
Kanalspont
KS 2014-09-03
15,3
15,3
0,0
10,3
1,1
1,1
0,0
Kvarteret Gäddan
KF 2014-09-25
210,0
210,0
0,0
30,0
19,2
19,0
0,2
Nature reserve & playground Ängsövägen KS 2015-02-04
21,0
21,0
0,0
0,9
2,1
2,0
0,1
Park & streets school Hyllie
KS 2015-02-04
34,5
37,7
-3,2
9,4
2,7
2,7
0,0
Park, green spaces, crossings, etc.
Gottorp
KS 2015-05-27
15,2
15,2
0,0
6,5
1,2
1,2
0,0
Com m ents on object approval – Technical com m ittee
Malm öringen: Estimates indexed by 2 % since 2010-2014 w hich makes SEK 9 m, SEK 2 m deposited for land compensation. The increase is
due in part to the project duration having been extended by tw o years, resulting in somew hat higher indexation. The schedule has been updated
and the final activation date is currently estimated at 31.12.2017 for Rosengård and 31.12.2017 Östervärn. Grants are paid out to the Sw edish
Transport Administration w ho is building the stations itself.
Kvarteret Spårvägen: Rise in costs due to more extensive modernising and demolition w ork than expected.
Park & streets school Hyllie: Foundation w orks under appeal, w hich has resulted in delays and the procured contract becoming more
expensive than estimated.
19
OBJECT APPROVAL - SERVICE COMMITTEE
Operating consequences
Com plete estim ate
Object
Nursery School Hyllie/Arkitektgatan
Decision date
KS 2011-03-01
Decision Forecast Deviation
49,3
43,4
5,9
Extension of Tornhuset, WMU
KF 2012-11-22
72,0
KF 2014-03-27
27,0
KF 2011-10-27
750,0
Outcom e
2015 Decision Forecast Deviation
43,4
KS 2011-08-17
Malmö Live construction contract, Concert
hall
115,8
-16,8
115,8
915,0
-115,5
914,0
91,0
3,0
91,0
KF 2014-02-27
49,5
Malmö Live construction contract, parking
house*
KF 2011-10-27
94,0
Malmö Live technology
KS 2012-09-05
48,0
45,6
0,0
45,6
Pilbäcks School/Tygelsjö School
KF 2011-12-21
170,0
159,0
11,0
158,5
Strand School
KS 2012-04-30
47,0
45,8
1,2
45,7
LSS-housing Hagstorp
KS 2012-05-30
29,0
28,6
0,4
28,1
Nursery School Sofielund
KS 2012-08-15
34,0
36,0
-2,0
32,4
Munkhätte School rebuilding
KF 2012-09-06
140,0
141,8
-1,8
118,0
Hylliebadet
KF 2012-11-22
349,0
356,0
-7,0
355,6
Aquarium Malmö museums
KS 2012-11-27
46,5
48,5
-2,0
47,1
Maria Nursery School
KS 2013-04-02
48,6
41,4
7,2
41,4
Parkens Nursery School
KS 2013-04-02
26,5
27,0
-0,5
26,6
Gånglåtens Nursery School
KS 2013-05-08
49,0
46,0
3,0
45,4
Rörsjö School's flexi Preschool School
KS 2013-05-29
35,2
0,0
35,2
2,1
Lorensborgs School
KS 2013-08-14
43,6
41,0
2,6
14,3
Wind pow er
KS 2013-11-06
37,0
36,1
0,9
36,1
Ängsslätt/Myggans preschool and dental
polyclinic
KS 2013-11-06
39,7
44,0
-4,3
9,3
Carl Gustafs preschool
KS 2013-11-06
34,0
34,3
-0,3
34,3
Stapelbäddens flexi school
KF 2013-11-28
170,0
180,0
14,0
132,1
KF 2014-05-22
24,0
LSS-housing Särslövsvägen
KS 2013-11-06
26,0
34,0
-8,0
30,6
LSS-housing Dukatgatan
KS 2013-11-27
42,0
32,5
9,5
32,4
Svansjöns preschool
KF 2014-02-27
55,0
55,0
0,0
45,1
Ellstorps preschool
KS 2014-03-05
18,0
0,0
18,0
0,0
Djupadals School
KS 2014-04-30
30,0
0,8
29,2
0,8
Rosengårds School
KS 2014-04-30
19,5
40,0
-20,5
31,6
Riseberga School
KF 2014-05-22
163,9
162,0
1,9
77,5
Geijers School
KF 2014-05-22
217,1
180,0
37,1
80,8
Glasugnens School
KF 2014-05-22
230,0
201,0
29,0
98,9
Nya Hyllie School
KF 2014-05-22
KS 2014-05-27
270,0
244,0
26,0
56,2
Almängens preschool
49,0
49,0
0,0
15,8
Wind pow er plant no. 2
KS 2014-09-03
49,0
46,0
3,0
0,4
Malmö Opera,Music Theatre, City Theatre
KF 2014-10-23
69,1
69,1
0,0
36,5
Gottorps School & preschool
KF 2015-02-05
349,0
300,0
49,0
73,7
Stapelbäddens sportshall
Hammarsparks preschool
KS 2015-02-04
34,0
34,0
0,0
25,1
KS 2015-02-04
17,5
8,0
9,5
6,7
Rörsjöns new preschool
KS 2015-02-04
49,0
49,0
0,0
7,7
Kalkbrottets preschool
KS 2015-02-04
45,0
45,0
0,0
17,7
Preschool Idun 1 Hyllie
KS 2015-05-27
25,0
24,0
1,0
5,6
Kulladals School building F
KS 2015-05-27
28,0
28,0
0,0
2,9
Preschool Granbacken
KS 2015-08-12
47,0
47,0
0,0
4,7
KF 2011-02-17
150,0
221,0
-41,0
221,0
KF 2011-12-21
31,0
LSS-housing, Chauffören
KS 2011-09-07
29,0
24,3
4,7
24,3
Preschool Stångbönan
KS 2011-09-07
28,7
31,0
-2,3
31,0
Preschool Pilevallsvägen
KS 2012-11-07
36,0
33,3
2,7
33,3
Värner Rydén School
KS 2013-02-06
17,0
20,9
-3,9
20,9
Preschool Bastionen
KS 2012-05-30
30,0
45,3
-15,3
45,3
Södertorps preschool
KS 2013-04-02
16,1
16,3
-0,2
16,3
Bellevuegårdens preschool
KS 2013-04-02
49,0
41,0
8,0
40,4
Financially closed 2015
Latinskolan school
20
48,5
46,0
2,5
36,0
36,0
0,0
Com m ents on object approval Service com m ittee
Extension of Tornhuset/WMU: The forecast w as adjusted during Autumn 2014 to SEK 112 m w ith reference to deviation report SN-20141665 sent to the City executive board November 2014, w here the difficulties linked to the project’s ultimate architects contest are described in
detail. In addition to the costs already mentioned, the forecast w as adjusted during the summer 2015 to SEK 115 m, on account of costs for
adjustment of the premises as w ell as requirements from the contractor for increased remuneration. In the project’s final phase, additional costs
w ere incurred regarding adjustment of the premises.
Malm ö Live: The project underw ent final inspection and w as inaugurated during 2015. How ever, final settlement for the contract remains. In
the month of July 2015, the final forecast w as reduced from SEK 1,030 m to SEK 1,006 m due to the construction loan facility interest and index
costs being low er as compared to the previous forecast. The forecast w as then revised so that the project became finished according to
schedule and could be approved in connection w ith the final inspection. The outcome is on level w ith the final forecast as the service committee
is expecting income regarding P-redemption from the Property Management Department and P-Malmö.
Hylliebadet: Hylliebadet w as inaugurated and opened to the public in August 2015. Final inspection took place in May. A test run of the facility
took place in the summer before the inauguration. The costs for the indoor pool and mounted to SEK 349 m at the time of object approval. There
is some did not include certain ow n investments for extra investments in energy supply as w ell as the leisure service department’s ow n activity
costs. The forecast w as increased during 2014 to SEK 354 m, excluding the aforementioned ow n investments and additional requirements from
the tenant. Factors for the cost increase include improved w ater purification and ventilation. The forecast as of 31.12.15 amounted to SEK 356
m, of w hich SEK 900,000 is for pecuniary penalties as the bath had not received the go-ahead before the activity w as granted access to the
premises.
Aquarium Malm ö m useum s: Rebuilding w as completed at the start of 2015 and the aquarium open to the public at the start of May.
Rörsjöskolan’s flexi school: The compulsory school administration, as a result of soil pollution, has stopped the project and w ill likely not
proceed w ith the order, w hich is w hy the forecast is zero. During autumn 2015 it w as agreed w ith the environmental department how to
manage the pollution and decontamination w ill be carried out. After that, a decision w ill be made for the future focus of the school.
Ängsslätt/Myggans preschool and dental polyclinic: The forecast is higher as a result of prolonged project planning and draw ing up of a
detailed development plan as w ell as a higher tendering price than budgeted.
LSS-housing Särslövsvägen: In the outcome, costs for archaeological excavations are accounted for w hich are transferred to the property
management department, amounting to SEK 7 m.
Ellstorps preschool: The preschool administration has elected not to proceed further w ith the project due to soil decontamination, w hich is
w hy the forecast is set to zero.
Rosengårdsskolan:the difference of SEK 20.5 m is due mainly to additional orders from the client w ith regard to, e.g., fire protection, extra
painting w ork, interior furnishing, stage divisioning to avoid evacuation costs and change of lighting. (Information obtained from the
administration)
Financial position
Solidity
Solidity shows the part of the balance sheet that is
financed by equity capital. The solidity amounted
to 44 % at year-end. This was a drop of 3
percentage points since the preceding turn of the
year. The reduced solidity is explained by the fact
that, while assets increased by 11 %, equity capital
increased by only 4 %.
The solidity, including that part of the pension
obligation that is accounted as a contingent liability, amounted to 24 %, which represents no
change compared to the preceding turn of the year.
21
Degree of liability encumbrance
The degree of liability encumbrance shows the part
of the balance sheet that is not financed with equity
capital. As opposed to solidity, the degree of liability
encumbrance has increased by 3 percentage points
to 56%. It is the long-term liabilities which have
increased to 36 %.
Loan ratio
The loan ratio shows the part of the net loans
(invested and lent funds less borrowings) in relation
to revenue from taxes and general contributions.
Up to and including 2013, the loan ratio was
positive, but during 2014 borrowings exceeded
funds invested and lent out. A certain degree of
recovery was seen during 2015.
Interest-yielding assets and net liabilities
The municipality’s interest-yielding net liability,
including the pension provision, increased
during the year. In total, the change was SEK 87
m. Liabilities increased by SEK 1,756 m and the
pension provision increased by SEK 113 m.
Assets increased by SEK 1.782 m.
Pension obligations
The municipality has pension obligations for employees and former employees that total
SEK 7,588 m. The pensions earned up until 1998 amount to SEK 5,891 m and they are
accounted as a contingent liability. This means that 78 % of the pension obligation lies
outside of the balance sheet.
In total, the obligation has decreased
by SEK 89 m during the year.
The entire pension obligation has
been re-borrowed in order to finance
part of the municipality’s overall
assets thereby.
PENSION OBLIGATIONS, SEK M
including special em ployer’s contribution
2015
2014
Change
Provision
1 697
1 584
113
Contingent liability
5 891
6 093
-202
0
0
0
7 588
7 677
-89
Financial investments
Total reborrow ed funds
Reserved under equity capital
Of the reported result from previous years, SEK 906 m have been reserved in a profit
equalision reserve intended to cover negative results that arise as a consequence of weak
income development in an adverse economic situation.
22
In the annual accounts it is proposed that SEK 185 m be utilised from the profit
equalization reserve.
From previous years’ results, SEK 100 m have been reserved for preventive social initiatives.
During 2013, the city executive board approved five measures at a total cost of SEK 34 m.
During 2015, SEK 8 m of this have been utilised.
Anticipated development
The demographic development with a higher number of children of nursery school and
school age brings challenges mainly for the educational activities in the areas of supply of
premises and personnel. How the municipality’s costs are affected by the increase in
population not only depends on the number of children, but also on the socio-economic
structure as well as to what extent demand can be satisfied by the existing capacity in the
municipality’s activities. When there is no capacity in existing activities to meet the demands
of residents, but capacity must be created in the form of, for example, new premises, the
marginal cost for that new capacity increases.
The rapidly increasing population will also demand the construction of more housing and
activity areas. This in turn leads to higher expenses for new infrastructure.
A long-term financial analysis carried out in autumn 2015 indicates that the requirement for
investments to meet the demographic development will utilise the entire financing capacity
which can be expected up to 2030. The capacity for other investments will be severely
limited.
The current refugee situation in Europe brings a new and difficult to survey planning
situation. The number of new residents in the city can change quickly and that change be
caused by factors which are beyond the control of the municipality. In the future, planning
must be adapted to a higher level of uncertainty.
The activity area health and social care is still showing a deficit in relation to budget despite a
modest development of costs. During the year, in-depth analysis of finances and quality in
health and social care indicated other factors in addition to the cost trend as presenting
future challenges. These include governance and management of the activity and how
Malmö City can further strengthen users’ options for receiving equal health and social care.
At the same time, several of the changes that were announced one year ago are on the way to
becoming effective during 2016 and the start of 2017. A new health care service agreement
with Region Skåne is under way during the year, new regulations by The National Board of
Health and Welfare clarify rules about staffing and as of January 2017, staff in health and
social care must wear overalls when working in close contact with users. All these changes
mean that work methods need to be adjusted and premises modified and will entail
additional financial obligations.
23
THE STAFF
The City of Malmö is one of the biggest employers in Scania with more than 24,000 staff
distributed over c. 400 occupations who provide Malmö residents with services every day in
various fields such as schooling, the environment, elderly care, child care, town planning,
traffic and culture. Their commitment, expertise and responsibility represent an important
prerequisite for an activity of high quality.
In order for Malmö City to be able to provide that service to Malmö residents, it is
important that the organisation can ensure that the right capabilities are available in the short
and long term. During 2015, it became clear that there is a requirement for developing and
coordinating the organisation’s competence maintenance, and work commenced on
developing a joint competence maintenance process.
Work on creating equal work opportunities continued during the year. This entails efforts
for discrimination-free recruitment, salary analyses and creating the conditions for staff to
combine work with parenthood. During the year, efforts to reduce the number of hourly
paid hours began having an impact, particularly in health and social care and preschool.
Malmö City, thanks to goal-oriented efforts, has been able to offer more secure employment
terms and the number of hourly paid staff in these activities dropped for the second year
running.
In light of the increase in sick leave, work on implementing systematic work environment
efforts continued to be prioritised during the year. Examples of this include training
activities, surveying, follow-up, analysis, risk assessment and local measures. The Swedish
Work Environment Authority’s inspection work of the social secretaries’ work environment
has resulted in special action plans. A comprehensive report regarding the development of
sick leave was drawn up to provide a basis for continued responses in efforts to create a
sustainable working life, good working environment and lower sick leave.
The increased number of children who arrived alone to Malmö in the autumn of 2015
resulted in a strong increase in the demand for housing and support for this target group.
For this reason, Malmö City recruited nearly 2,000 new staff during the period September–
December. This increased demand also meant reprioritisations were made in the
administration so that staff could help with receiving refugee children.
Total number of staff
During the year, the average number of staff,
including temporary employees with an hourly
wage, numbered 23,730. The average number of
employees increased by 925 compared with 2014.
The average number of staff is the average number
of staff for the year, converted to the number of
full-time employees.
24
On 31 December 2015, there were 24,032 monthly employed staff (76.39 % women and
23.7 % men), representing an increase of 1,031 compared with the preceding year. The
increase was due to, among other things, the continued development of preschools as well as
the increased demand for housing and support for children arriving alone. Of all monthly
employed, 20,590 (77.5 % women and 22.5 % men) were permanent, comprising 85.7 %.
The number of permanent employees increased by 710 during 2015. The average age was
44.6 years, compared to 43.5 the preceding year. The average age for women as well as men
rose slightly. For women, it was 45.1 years in 2015 compared to 43.6 years in 2014. For men,
the average age was 44.0 in 2015 compared to 43.5 in 2014.
The City of Malmö has a
diversity of varying skills.
There are c. 400 different
occupations distributed
among different
vocational groups in the
city’s various areas of
activity. The ten biggest
occupational groups
corresponded to 55.4 %
(13,310) of the employees
in total.
NUMBER OF MONTHLY PAID IN THE 10 BIGGEST OCCUPATIONAL GROUPS
Assistant nurse, elderly care
Total
num ber
2 925
Share
w om en
90,5%
Share
m en
9,5%
11,6%
Nanny
2 603
88,4%
Preschool teacher
1 799
94,2%
5,8%
Carer, communal housing
1 205
73,3%
26,7%
Teacher compulsory school, early years
1 080
83,2%
16,8%
Nursing auxiliary, elderly care
996
79,8%
20,2%
Social w elfare secretary
925
88,3%
11,7%
Teacher compulsory school, later years
638
66,8%
33,2%
Treatment assistant/social education w orker
574
62,4%
37,6%
Teacher upper secondary school, general subjects
565
59,1%
40,9%
Personnel costs
The 2015 wage review was carried out with all the organisations and the average wage
adjustment outcome was 2.89 %. The outcome for the employees was 2.93 % for women
and 2.75 % for men.
The average wage for all monthly-employed amounted to SEK 27,484, an increase of 2.57 %
compared with the preceding year. The average wage for women increased by 2.82 % to
SEK 27,282 and the average wage for men increased by 1.71 % to SEK 28,137.
The personnel costs amounted to SEK 10,894 m in 2015, an increase of 6.4 % on the
preceding year. The
PERSONNEL COSTS, SEK M
personnel costs’ distribution
2015
2014
2013
2012
is seen from the table to the Salary
7 496
7 071
6 773
6 329
right. Included in the table’s Social security contributions 2 497 2 326 2 028 1 941
901
843
772
797
pension costs is also interest Pension costs
Total
10
894
10
240
9
573
9
067
on pension provisions.
2011
5 927
1 830
880
8 637
Absence through illness
Absence through illness in 2015 amounted to 6.85 %, an increase corresponding to 0.57
percentage points in relation to the preceding year. Absence through illness for women was
7.61 % and for men, 4.37 %. In comparison to the most recent ten-year period, it can be
seen that absence through illness has increased since 2011, and in 2015, is at approximately
25
the same levels Malmö City had 10 years ago.
This is in line with the trend in public
organisations.
The occupational groups with a higher absence
through illness than the average for the City of
Malmö are nannies, assistant nurses, preschool
teachers, orderlies and caregivers.
It is important to establish that a large part of The City of Malmö’s employees are healthy.
During 2015, 33 % (30.5 % of women and 41.7% of men) of the employees had no absence
through illness. The total sick pay costs during 2015 amounted to SEK 220 m. The costs of
short-term absence through illness (1-14 days) amounted to SEK 180 m, i.e. 82 % of the
total sick pay costs.
The absence through illness volume for all the monthly-employed during the period 20112015 has developed in the following manner:
The table below shows absence through illness according to the statutory absence through
illness report, which is calculated based on a specially assigned calculation basis. Total
absence through illness increased in 2015 by 0.8 percentage points compared to the
preceding year.
SICK LEAVE IN PERCENT (change in percentage points)
2015
Total sick leave time in relation to total regular
w orking hours
2014 Change
7,0
6,2
+0,8
41,5
40,3
+1,2
Sick leave time for w omen in relation to total
regular w orking hours for w omen
7,7
6,8
+0,9
Sick leave for men in relation to total regular
w orking hours for men
4,7
4,3
+0,4
Sick leave in the age group – 29 years in relation
to total regular w orking hours for the group
5,1
4,5
+0,6
Sick leave in the age group 30-49 years in relation
to total regular w orking hours for the group
6,4
5,9
+0,5
Sick leave in the age group 50 years – in relation
to total regular w orking hours for the group
8,5
7,4
+1,1
- of w hich time w ith long-term sick leave (more
than 60 days) in relation to total sick leave
Personnel supply
During 2015, 4,976 jobs were advertised, resulting in134,109 applications. The response
from applicants was good even though recruitment was difficult for certain occupational
groups, in particular for preschool teachers, comprehensive school teachers and social
welfare secretaries. Efforts aimed at securing long-term personnel and competency supply
were primarily carried out in the sectors of preschools, schools as well as health and social
care.
26
Personnel turnover in Malmö City increased from 8.7 % during 2014 to 11 % for 2015.
Personnel turnover among women amounted to 11.1 % and for men 10.6 %. Occupational
groups with a high personnel turnover during the year included social welfare secretaries
(20.6 %), treatment assistance/social education workers (17.5 %) and preschool teachers
later years (14.8 %).
In order to afford the people of Malmö a good service, it is important to have equality and
diversity in the city’s activities. The proportion of citizens with a foreign background in
Malmö was 34 %, an increase of 2.1 percentage points on 2014. The proportion of foreign
background among female employees was 34.1 % and among male employees, 33.4 %.
An efficient leadership is important in order to bring about a working climate where all
employees feel motivation, commitment and participation. An important factor in achieving
efficient leadership is leader density in the organisation. During 2015, the average leader
density was 20.3 employees per manager, which represents no change from 2014. Leader
density does, however, differ between administrations and in 2015, more than a third of
leaders in Malmö city had more than 26 staff. The average for managers who are women was
higher than that for men. Female managers had an average of 21.7 employees, while male
managers had an average of 16.9 employees. In the City of Malmö there were, at the end of
2015, 1,204 managers (68.5 % women and 31.5 % men) with personnel and activity
responsibilities.
During the coming ten-year period, it is estimated that there will be c. 4,048 permanent
employees, i.e. 19.7 % of permanent employees, who will retire with an old age pension (67
years). During 2015, there were 478 employees who retired with an old age pension.
In-depth information and follow-up of Malmö City’s personnel policy aims and overall
personnel areas can be found in the Personnel Report 2105, which will be presented in spring
2016.
27
THE CITY COUNCIL’S OBJECTIVES IN THE 2015 BUDGET
This part of the annual report comprises an assessment of how committees and whollyowned municipal companies have contributed to meeting the nine city council objectives1.
Follow-up is to take place according to the new structure for governance, management and
development from the year 2015. This means that committees and companies are still in a
phase of development with regard to drawing up committee objectives and work methods
for follow-up and analysis which are connected to the city council objectives.
The city council objectives are long-term in character, and follow-up thus consists of an
assessment as to whether the development is heading towards target achievement.
In a separate appendix to the annual report – Assignment from the city council in the 2015 budget –
a description is provided of the current status of the committees’ work on the budget
assignments given in the 2015 budget.
Target area 1 – A young, global city
City council objective:
Malmö residents shall be able to feel proud of their young, global and modern city where issues
regarding social and gender equality, anti-discrimination, environment and participation are high on
the agenda.
Target achievement
Only a few committees have analysed to what extent their work has influenced target
achievement of the city council objective, making it difficult to provide a cohesive
assessment of the target achievement. Assessment is made even more difficult by the target
being broad and the committees focusing on different aspects of the objective.
There is no one committee that takes on meeting all elements of the city council objective
and there is room for improvement in how the committee objectives are linked to the city
council objective. In general, however, the committees have taken several steps forwards in
working to reach the objective. There are more committees now than previously which have
a cohesive target chain and which follow up the committee targets by means of user surveys,
dialogue and questionnaires. Worth highlighting here are the preschool committee,
comprehensive school committee and city district committees.
The service committee, preschool committee and City District Committee South describe to
what extent they contribute to the target achievement of the city council objective.
Altogether, however, only very few committees analyse to what extent their work affects the
city council objective.
1
In addition to these nine objectives, the city council also has a financial objective. Follow-up of this objective
takes place in the Administration report.
28
Target area 2 – A city for work and business
City council objective:
Malmö residents shall have access to a growing labour market and be given the conditions to be selfsufficient.
Target achievement
The majority of committees emphasise cooperation between the municipalities committees
and other relevant players in society as a key factor for better target achievement. In addition
to this, the committees name a focus on educational results, sustainable transport, social
investments internship positions, self-sufficiency, procurement paragraphs, cultural
offerings, company foundings and quality and activity development as central contributions
to target achievement.
The degree of target achievement becomes unclear due to the committees’ varying degree of
analysis of their results. In terms of results, however, development in trade and industry is
somewhat stronger than in the labour market sector within the municipality. The technical
committees state good planning conditions for company foundings, while the City District
committees signalled that the number of households with maintenance support has
increased and that staff turnover is high. This illustrates the need for the committees to
continue to strive for synergies between labour market and business issues in their efforts to
achieve the targets.
Target area 3 – A city for children and youth
City council objective:
Malmö’s children and youth shall receive the support and the education they need to grow up under
safe and equal conditions and to develop their full potential.
Target achievement
Based on the committees’ analyses, it is difficult to assess whether development is heading in
the right direction towards target achievement. Several committees have a focus on and
prioritise children and youth, but their ability to affect the target in its entirety varies, which
can create conflicts of interest based on the committees’ differing order of priorities.
The school committees are assessed as having the greatest influence on target achievement.
Their results and analyses for 2015 indicate continued great challenges even if development
efforts are ongoing in order to achieve higher target achievement. The school committees do
not manage to a sufficient degree to compensate for pupils’ varying socio-economic
backgrounds, which makes the schools’ results vary greatly and Malmö’s result differ from
the national result. Other committees affect target achievement more indirectly, such as
through legal guardians and children’s participation and influence on inquiries in individual
and family care. Swimming at school, school meals, traffic safety, and culture for children
and youth are also listed as indirect contributions to target achievement. It is clear that
cooperation is a decisive factor in the work towards target achievement.
29
Target area 4 – An open city
City council objective:
Malmö shall be an open, equal and inclusive city, free of discrimination, where everyone is given equal
rights and opportunities, and where diversity is an access.
Target achievement
Analyses and reports show that work on equal opportunity integration is given great scope in
relation to the other perspectives in the city council objective, such as discrimination and
diversity. Several committees pronounced that they are aware of this and that they have
strategies in place to develop work within the city council objective. The leisure committee
states that a strategy is to be drawn up and the City District Committee South has tested a
tool for equality analysis, in which several of the city council objective’s perspectives are
included.
All in all, work is underway in the city’s committees that contributes to achieving the city
council’s objective. The Leisure Committee, Culture Committee, Social Resource
Committee, Urban Planning Committee and City District Committee East all report tangible
efforts that contribute to target achievement. The result of the work, however, is not
something that becomes apparent within the period of a year but will show henceforth.
Furthermore, a number of committees do not have any efforts to report in the target area.
Target area 5 – A city for everyone
City council objective:
Malmö residents in need of support and help shall be treated with respect and provided with the
conditions for a meaningful existence with influence on their everyday life and in society.
Target achievement
Based on the committees’ reporting, it is not possible to conclude whether the development
is heading in a positive direction towards target achievement. Eleven committees described
that they have contributed to and influenced the city council objective in a desired direction,
but the description of how this has taken place is unclear in several of the committees. In
order to improve target achievement in the future, the labour market, upper secondary
school and adult education committee will further develop the dialogue for pupil networks
and pupil representatives.
City District Committees West, South and East report development efforts for increasing
the opportunities for influencing and providing a higher degree of safety and security by
means of, for example, user surveys and improved implementation plans in their work
towards target achievement.
30
Target area 6 – A safe and accessible city
City council objective:
In Malmö, everyone shall be safe and feel safe at home as well as in the city’s public space.
Target achievement
Target achievement is difficult to assess as reporting mainly describes efforts carried out
rather than the results of these. However, the Leisure Committee, Preschool Committee and
Comprehensive School Committee, for example, describe more systematic work that
includes analysis of the result of the activity’s work.
The committees have primarily contributed to target achievement by working on safety and
security at home and in the public space. Only a few committees shine any light on work
regarding the underlying factors, which have also been highlighted in the target area, such as
trust, participation and social anchorage. Few committees also report about accessibility.
Work that has been carried out and which is expected to contribute to target achievement,
concerns among other things fall prevention, support for relatives, violence in close
relationships, safe foot and cycle paths, meeting places and food handling. This crossboundary work is emphasised as being crucial by several committees. The City District
Committees describe broad cooperation in preventive work with, among others, the police
and civil society.
One difficulty in assessing target achievement is that follow-up is done annually, while
preventive efforts show any effect only from a long-time perspective. The social and gender
equality perspective is highlighted by some committees, but would have two pervade the
reports of more committees in order to allow an assessment of the development for
different groups in the population.
Target area 7 – A creative city
City council objective:
In Malmö, everyone shall have the opportunity to develop and be invigorated with the help of
meaningful leisure and culture options.
Target achievement
Based on the committees’ reporting, development is assessed as heading towards
achievement of the city council objective. The preschool committee reports that in the
current situation, they cannot contribute to the city council objective. Other committees and
companies who have committee objectives in the field, report that the committee objective
is being achieved and that this contributes towards achievement of the city council objective.
In the reports of how committees and companies contribute to target achievement, great
importance is given to equality integration and a focus on prioritised groups – primarily
children and youth. Several committees state that they have begun to use statistics broken up
by gender and generally several new methods for measuring are reported in order to be able
31
to track the results within the target area over time. The Urban Planning Committee and the
Service Committee specifically emphasise their role as supporting other committees’
opportunities to achieve targets within the field and several committees point out internal
and external cooporation as significant success factors.
Committees and companies are working towards a broad and varied range of culture and
leisure options, but sufficient analysis is lacking in order to decide which target groups are
being reached, and whether the entire city is being activated. The Social Resource Committee
emphasises a focus on allowing socially and financially vulnerable groups to participate in
culture and leisure in the city and how equal opportunity analyses and norm-critical analyses
represent a tool in this work.
Target area 8 – An ecological a sustainable city
City council objective:
Malmö city shall create a sustainable town structure for a growing population and continue to develop
as an attractive and accessible city.
Malmö shall be a health-promoting and climate-smart city in which it is easy to make sustainable
choices.
Target achievement
The varying degree of reporting makes it a challenge to assess target achievement, but it does
become clear that the committees are heading towards target achievement. Areas in which
work is underway include making the use of energy more efficient, and environmental
considerations in procurements, waste separation, Green Flag certified preschools, wind
power plants and climate change adaptation of the municipality’s properties and MKB’s
housing stock. To this comes increased walking, cycling and public transport as well as the
Malmöexpressen drive. Several committees are also showing that there is an awareness of
the significance of ecological sustainability that pervades day-to-day activities.
Some committees’ mandates have especially great significance for target achievement based
on their regulations or owner directives. This makes its especially pressing to develop the
work to meet the city council’s ambitions regarding the target area for these committees.
Target area 8 contains two ”sub-objectives” which do not exclusively link to the heading for
an ecologically sustainable city but also to other and broader values such as health,
accessibility and a sustainable town structure for a growing population. The wide scope of
the target area reflects a holistic approach to sustainability, where all dimensions are seen as
integrated.
Target area 9 – A city with good work conditions
City council objective:
Malmö City’s staff shall have good work conditions and meet and treat Malmö residents with a high
level of expertise and knowledge.
32
Target achievement
The city council’s objective has two main parts – good work conditions and a high level of
competence. The committees are reporting good results in many areas but there are
challenges in the ongoing work, not least those linked to environmental factors, which the
committees themselves have no influence on.
The emphasis on reducing the proportion of hourly paid hours has had a great impact.
Several committees have reached a level where the proportion of hourly paid hours is
deemed necessary for the activity. Efforts to increase the proportion of full-time
employment are also heading in a positive direction. The increasing level of absence through
illness presents a challenge for continued positive development. The City District
Committees point to an increase in absence through illness, despite several measures aimed
at reducing it. The preschool committee, however, did see a drop in short-term and longterm absence through illness during the second half of the year, which shows the importance
of a dialogue between committees regarding measures and success factors.
There are several examples of effort, such as development plans and competent strategies
for the focus on a high level of staff competency, but the challenges and conditions vary
between the committees. The school committees’ analyses indicate great challenges with an
increasing number of pupils in Malmö, while there is a nationwide lack of teachers. City
District North stresses that the city districts have begun joint work on personnel supply. The
city council objective includes many parts in which the committees have made varying
degrees of progress and follow-up and analysis is lacking in several areas. There is every
reason to strengthen cooperation between the committees even further with regard to the
wording as well as follow-up of committee targets.
33
THE POPULATION
At the end of 2015, the total population numbered 322,574 persons in Malmö, of which
163,619 women and 158,955 men. The population at the end of 2014 was 318,107 persons,
meaning the population increased by 4,467 persons during 2015. That is c. 800 less than
what the forecast predicted. The difference is explained by that the Swedish Tax Agency
during the year deregistered around 800 persons who are no longer resident in Malmö. In
the short term, this is an error source in the
population statistics, but at the same time,
register maintenance is a prerequisite for
records corresponding to the actual population
to the greatest extent possible. In absolute
figures, population growth was the lowest
since 2011. Regardless of the deregistrations,
however, the change is on par with that of
recent years, with around 5,000 more Malmö
residents per year.
The number of women and men is distributed relatively evenly in the younger age groups up
to 19 years. In the group 20-29 years, significantly more women than men are found, and in
the age group 30-39 it’s just the opposite, if to a varying extent. From age 60 and up, women
are overrepresented in every age group, which to a large part can be explained by that
women have a longer average life expectancy as compared to men. The lopsidedness in
gender distribution becomes particularly noticeable for age 75 and up.
The number of newborn has remained relatively stable at over 5,000 in recent years. The
population structure and the developments in recent years speak for continued high birthrates. Decisive for the birth-rates is the number of women of childbearing age.
The number of dead is at a constant level compared to the preceding year. The death rate
has continuously dropped during the last 10 years, which means that the birth surplus has
continuously increased. During the year, the birth surplus amounted to just under 2,500
persons.
During autumn 2015, refugee immigration to Sweden increased significantly and in total
almost 163,000 refugee applications were received by the Swedish Migration Board during
the year. As asylum-seekers are not nationally registered, they are not included in the regular
population statistics and forecast. The group is, however, relevant to municipal activities
since, for example, the children have a right to an education. The number enrolled in own
housing in Malmö on 31 December increased from 1,700 to 3,800 between 2014 and 2015.
The number of people moving in to Malmö in 2015 totalled around 21,550 and those
moving away about 19,650, resulting in a net gain of around 900 persons. Net migration
to/from abroad was just under 2,200 persons, an increase by around 300 compared to the
preceding year. Domestic net migration was negative for the first time since 2007, with just
under 300 more persons moving away from than moving to Malmö. The total number of
34
people moving in during 2015 is the highest ever in one single year, but the migration
surplus is the lowest since 2011.
Of the total number moving in, about 70 % come from Sweden and 30 % from abroad. So
in absolute numbers, domestic migration to/from Malmö is significantly higher but
immigration and emigration vary more, which is likely linked to external factors globally,
such as conflicts and troublespots. The propensity for moving domestically is largely
influenced by age and varies between different stages in life. Both Malmö, Stockholm and
Gothenburg, for example, have a negative net migration among families with small children.
The budget for 2015 was prepared with the
support of the population forecast completed
in spring 2014. The number of residents in the
different age groups is calculated as an average
of the population between the forecast values
for 31 December 2014 and 31 December 2015.
The difference between outcome and budget
was relatively large, almost 900 persons fewer
than budgeted.
The number of residents of compulsory school
age 6-15 years was just over 100 more than
budgeted, while upper secondary school youth
16-19 years were fewer than budgeted.
The oldest residents, over 85 years, were more
than budgeted, while younger pensioners aged
65-84 were fewer than budgeted.
RESIDENTS 2015
Outcom e*
0-year
Budget* Difference
5 160
5 291
-132
1-5 years
22 709
22 684
25
6-15 years
31 684
31 554
130
16-19 years
11 988
12 156
-169
20-64 years
199 502
200 276
-775
65-79 years
34 842
34846
-4
80-84 years
6 611
6 646
-35
85-89 years
4 757
4 740
17
90-w years
3090
3046
44
320 341
321 239
-899
Total
* Outcome is calculated as the average of outcome
31-12-2014 and 31-12-2015. Budget refers to
estimated average for 2015 when deciding the
budget (October 2014) based on forecast outcome
31-12-2014 and 31-12-2015.
The greatest difference, just over 800 persons, was seen in the age group 20-64 years. This
group requests municipal service to a lower degree, which is why the difference takes on less
significance for the activity and cost development.
35
THE ACTIVITIES
City executive board
The city executive board’s activities during the year were marked by events in the city and its
surroundings. The large number of people fleeing who arrived in Malmö during autumn
prompted the activation of Malmö city’s crisis organisation in order to support other
administrations and coordinate contacts with other authorities. The crisis organisation was
disbanded in January 2016 and its work will be evaluated during spring. Another important
event during autumn was management of the EU-migrant camp in Brännaren 19 District in
November and the subsequent rally at the city hall.
The increasing population in Malmö is creating increased demand for expanded community
service. Processes for new construction of premises and changes in infrastructure and other
constructions, however, are long and it is thus important to find sustainable strategies so that
development can be guided in the right direction. In order to develop the long-term
planning for the city, work is under way regarding investment strategy and long-term
financial planning. Work on improved governance and prioritiisation of investments also
involves the technical committees which drive and carry out the majority of the city’s major
investment projects. In the 2016 budget, the city executive board has also been given a
mandate by the city council to develop the investment process.
The expansion of community service in Malmö requires cooperation with Malmö’s
surroundings, on a local level as well as regionally, nationally and internationally. Work is
underway to develop Malmö City’s strategic efforts to engage with the world around it so
that arenas with exposure to the surroundings are utilised to achieve the greatest possible
impact for the city’s issues and challenges. Cooperation is also ongoing within the scope for
MalmöLundregionen and Greater Copenhagen.
The city executive board’s administration coordinates investments in infrastructure and
housing construction as part of the city package for Malmö and neighbouring municipalities.
These investments are part of the government initiative Sverigeförhandlingen (The National
Negotiation on Housing and Infrastructure) which deals with infrastructure issues in
metropolitan areas. The initiative is about the state, municipalities and industry cooperating
with regard to the financing of high-speed trains, main railroads and city development with a
special focus on building housing. Ahead of the opening of The National Negotiation on
Housing and Infrastructure, chairpersons in Malmö’s city executive board, together with
chairpersons in Gothenburg’s and Stockholm’s city executive board, have formulated a joint
agenda to meet the challenges of big cities in areas such as social divides, growth,
employment, housing construction as well as climate and the environment.
The city executive board continues to coordinate work in accordance with The commission for a
socially sustainable Malmö and has carried out follow-up of Socially sustainable Malmö. In addition
to comprehensive investigations in many parts of Malmö city’s organisation, work continues
in the direction that was decided with knowledge seminars, peer reviews, and socioeconomic estimates regarding activities and efforts. During spring 2016, a sustainability
report for Malmö is also coming.
36
Net costs for the city executive board dropped from 2014 to 2015 by 20.7 % to SEK 523 m.
The main explanation for the drop in net costs of SEK 137 m are damages for the
cloudburst Arvid, which mainly arose during 2014. Other reasons include organisational
changes that were implemented during 2014 and thus only had a full impact on costs in
2015. These are, on the one hand, the transfer of the grant to the labour market and adult
education commission to the labour market, upper secondary and adult education
committee, and on the other hand, transfer of the city’s joint IT-organisation to the city
executive board. The former has led to reduced costs for the city executive board, while the
other has led to increased revenue in form of communal financing of the IT-activity.
Plan and city environment
Technical committee
The committee’s net costs, excluding development and sales profits, amounted to SEK
730 m, which is on par with the preceding year.
The sale of development land amounted to SEK 482 m during the year, which is SEK 32 m
higher than budgeted. Of these sales proceeds, SEK 369 m have been taken to income,
which consists of purchase sums of SEK 516 m reduced by compensations for road costs of
SEK 147 m. The discrepancy to the budget is explained by the buying of the freehold for the
property Saga 1 (Hyllie).
The investment activity covers both investments in fixed assets and development properties.
The committee’s gross investment volume amounted to SEK 719 m for the year, which was
SEK 209 m lower than budgeted. The discrepancy is largely explained by the postponement
in time of e.g. the projects Varvsparken phase 4, Industrigatan phase 1, Folkets park,
Brottets bana and the bicycle lane Tessins väg.
Some of the projects completed during the year are Stapelbäddsparken, Laaängen Park in
Tygelsjö, renovation of quays along Östra and Västra Älvsgatan, three fitness pass and two
outdoor gyms, bicycle lane Sankt Knuts väg, roundabouts in Svågertorp, the city’s space
around Malmö Live and a riding facility at Klagshamnsudden.
Development of Norra hamnen has continued, partly with regard to the area’s expansion,
partly concerning contacts with interested parties for establishing activities in the area. The
detailed plan for phase 1 has acquired legal force and two land reservations been signed for a
total of 13.5 hectares of plot area.
The development activity focuses on the construction of housing in locations near stations,
such as Västra hamnen/Universitetsholmen, Nyhamnen and Hyllie as well as constructing
housing in economically weaker parts of the city. Another area of focus is Norra Sorgenfri
and kv Spårvägen.
During the year, construction began on 2,200 housing units on private and municipal land,
which is the greatest volume in 15 years. Of these, 900 are residences, of which 75 % tenant
37
flats, on land made available by the municipality. During the year, the committee approved
agreements that will cover some 3,000 new housing units.
The final report by the Commission for a socially sustainable Malmö has provided the basis for an
offer from MKB Fastighets AB to increase the number of transit apartments the company
will offer the municipality. Of the 100 new apartments that have been offered, all have now
been transferred and made available for social housing.
City planning committee
The committee’s net costs amounted to SEK 85 m in 2015, which is on par with the
preceding year.
The pressure to build housing in Malmö is great and during the year 3,200 building permits
were approved, which is twice as many as during 2014. Of the housing units that were
granted building permits, construction began on just over 2,200, which means that
construction could begin on 1,000 housing units already at the start of 2016.
During the year, detailed plans were passed for more than 2,400 housing units. Planning
preparedness is good and there are around 7,000 housing units in detailed plans which have
acquired legal force. The majority of these are ongoing projects in larger development areas
such as Hyllie, Västra hamnen and Limhamn.
The attempt with BoLotsen, a type of coordinator for the planning and building process of
housing which is an important tool to increase housing construction, was made permanent
during the year.
Work on the masterplan’s follow-up mandate proceeded during the year. Consultation took
place with regard to a more in-depth masterplan for parts of Kirseberg, expansion strategy
for Malmö, a plan for the community services, land requirements and a more in-depth
masterplan for Nyhamn.
The housing agency Boplats Syd has a clear, regional focus and during the year the allocation
sector was once again expanded. During the year, 4,505 apartments were allocated, which are
140 more than for the preceding year. The number of registered applicants at the end of the
year was 58,388, which is 11,784 more than during 2014.
During November, the city council decided that Boplats Syd’s future organisational form
should be a municipality-owned limited company and decided to task the city executive
board, following consultation with the city planning committee, with getting back to the city
council with documentation for a final decision in the matter, no later than half-way through
2016.
Service committee
The committee’s net income during 2015 amounted to SEK 88 m, which is SEK 58 m
higher than in the preceding year. The difference is due to a change in the balanced budget
requirement between the years. The biggest change is that part of the committee’s net
interest income has been returned to the treasury.
38
The committee’s gross investment volume during the year amounted to SEK 1,032 m, which
is SEK 228 m less than budgeted. The discrepancy in relation to budget is due to a number
of projects concerning schools and nursery schools having been brought forward in time due
to, e.g., the decision-making process the ordering committees, various requirements by
public authorities that affect the process and land pollution. A number of major school
projects were procured at significantly lower cost than budgeted, due to the state of the
construction sector.
Several projects were completed with regard to preschools, schools and housing. Malmö
Live was completed during the year as was the family indoor pool in Hyllie, Tornhuset for
World Maritime University and the Aquarium in Malmö Museums.
During the year, the committee added some 300 preschool places and around 500
compulsory school places in Malmö. The number of compulsory school places is lower than
planned due to the executing contractors having filed for bankruptcy. Measures have been
taken and the places will be completed by the end of April 2016.
Similar to previous years, measures to reduce the neglected maintenance of leisure properties
were carried out. The committee expects 2016 to be the last year it will need funds to take
measures to rectify the neglected maintenance.
In September, Special transports once again got a complete vehicle fleet following the
cloudburst of 2014. The city executive board decided that the service committee be tasked
with developing and adapting the activity for a special transports for another three years.
Environment committee
The net cost amounted to SEK 59 m, which was a drop of SEK 0.7 m or 1.1 % compared to
the preceding year.
The Environment Department carried out inspection in 43 operatives in Malmö during the
year. In the majority of properties, several deficiencies according to the Swedish
Environmental Code were detected. The number of people living in basements and other
unlawful housing increased and during 2015 major resources were allocated to counteract
this. Inspection also took place in temporary and permanent housing which sprung up as a
result of the increased influx of refugees.
Inspection work at the property Brännaren 19 was completed during the year, following
cooperation with administrations concerned, the police and authorities. The environment
committee took a decision in October for correction at the expense of the erring party,
meaning demolition and cleaning of the camp, which attracted wide attention.
During 2015 the environment committee inspected 2,226 food operations, which
corresponds to 89 % of registered activities. Environmental aspects were integrated in the
work and the activities are continuously informed of how they can contribute to sustainable
development.
39
Through long-term work to reduce the emissions of bus traffic and reducing traffic flows
through active traffic regulations, the number of instances of exceeding the environmental
quality norm has dropped. On Amiralsgatan, measurements showed that the nitrogen
dioxide contents dropped by c. eight percent after introduction of the Malmöexpressen.
The environment committee has contributed to the work to create a knowledge and
innovation-based city. This by strengthening existing cleantech companies and attracting
new company establishments. During the year, the environment committee participated in
work with Plan for Malmö’s water, Plan for green and blue environments and Cloudburst plan for
Malmö.
Educational activity
The number of children and pupils continues to increase strongly. The preschool activity has
expanded strongly in recent years, but the growth rate has now begun levelling out. The
compulsory school activity, however, is at the beginning of a period of expansion.
Continuous adaption of the activity to the changing conditions is a permanent challenge for
the educational activities. The strong expansion involves a great focus on access to suitable
premises and personnel supply.
During the year, efforts continued to develop the respective organisation and its internal
processes, but also to develop cooperation with the other school committees and with other
internal and external players. Examples of cooperation between school committees is the
joint investigation work that has been carried out in order to improve the transition between
compulsory school and upper secondary school and regarding the use of premises and
expansion. The school committees have also established a new collective organisation for
internships, PraktikMalmö, which now manages internships on behalf of all school
committees.
A great number of development efforts are underway in preschools and schools to attain
higher target achievement and comparability. Follow-up of the pupils’ skills outcomes is
used as a basis for identifying areas of development. Quality visits, quality dialogues, surveys
to legal guardians are other activities which have been carried out in order to develop the
activity.
Preschool committee
In October 2015, there were 252 municipal preschools and 76 independent preschools in
Malmö. The number of municipal preschools is lower than in 2015, which is due to the fact
that while new preschools have been added, others have been phased out or merged.
Pedagogical care was provided by 7 childminders under municipal management and 28
under private management. During the year, there were 8 open preschools under municipal
management and 2 under private management.
The net costs for the preschool committee during the year amounted to SEK 2,438 m.
Compared to 2014, the net costs for the nursery school activity increased by SEK 14 m or
0.6 %. The net costs can, however, not be fully compared between the years. For 2015,
government grants for maximum fees and quality assurance measures were also included in the
40
committee’s net costs. The committee has assumed the responsibility for applying for these
targeted government grants, which has increased the net costs. Adjusted for the effect of the
government grants, net costs have instead increased by 4.6 %. The cost increase is mainly a
result of a higher number of preschool places and the price and wage development. The
number of children enrolled in preschool or pedagogical care has increased by 2.1 %
compared to the preceding year.
In the municipal activity, several new preschools were opened during the year and the net
addition of preschool places amounted to 200. A higher number had been planned but
delays and environmental injunctions resulted in fewer places being opened during the year.
Preschool premises in schools have also been handed over to the compulsory school activity.
The number of children of preschool age
continues to rise in Malmö, but at a somewhat
lower rate than in previous years. During the year,
the number of children with places in preschool
or pedagogical care amounted to around 19,900.
Of children who were staying in the municipal
activity, 49 % were girls and 51 % boys, while in
freestanding 50 % were girls and 50 % boys. The
chart shows the development of the number of
children enrolled in preschool activity since 2011.
Compared to the preceding year, over 400 more children had a place in preschool or
pedagogical care. This increase took place in both municipal and freestanding activities. The
number of children on the waiting list increased somewhat in 2015 and during the year
amounted to an average of 169 children. This changed waiting list affects the rate of demand
fulfilment only marginally. All children have been offered a place within the mandatory time
frame.
PRESCHOOL ACTIVITY - NUMBER CHILDREN ENROLLED
2015
2014
Change
Total number of children enrolled
19 919
19 508
411
Demand fulfilment
99,2%
99,3%
-0,1%
Demand
88,5%
88,3%
0,2%
Share of children with full-time places
95,3%
94,4%
0,9%
Number of children in independent activities
14,5%
14,5%
0,0%
The number of children
in the population seeking
a place is increasing and
an increasing proportion
of children are seeking
full-time places. Over 95
% of children are now
enrolled full-time.
In the committee, work continues on increasing quality and equality in the activity.
During the year, there has also been a focus on creating a safe and secure preschool for all
children. Efforts have also been carried out to prevent discrimination and insulting
treatment.
Compulsory school committee
The comprehensive school activity includes nursery school classes, comprehensive
school, special comprehensive school, pedagogical care and open leisure time activities
41
for school children. By the end of 2015, there were 75 municipal comprehensive schools,
1 reception school (Mosaik), and 26 independent compulsory schools in Malmö.
The net costs for the compulsory school committee amounted to SEK 3,270 m during the
year. The net costs increased by SEK 200 m, or 6.5 % compared with the preceding year.
The rate of increase is affected mainly by a higher number of pupils, the price and wage
development, but also by government grants for maximum fees for after-school centres
being included in the committee’s financial scope as of 2015. The number of pupils/children
increased by 5.5 % during the year in compulsory school and by 7.3 % in after-school
centres.
During the year there were a total of just under
31,600 students which was an increase of around
1,600 students compared with 2013. Some 49 %
of the students were girls and 51 % were boys.
The chart on the right shows that the increase in
the number of students has been greater every
year.
The number of students is nursery school class and comprehensive school increases while
the number of students in special schools continues to fall somewhat, as can be seen from
the table on the right. The increase COMPULSORY SCHOOL- PUPILS
has taken place both in municipal
2015
2014 Change
Number of students in preschool class
3 812
3 538
274
and independent schools. The
Number of students in compulsory school
27 487
26 124
1 363
number of pupils in independent
Number of students in special school
264
268
-4
schools has increased somewhat
Total
31 563
29 930
1 633
since the preceding year.
Proportion in independent activities
16,3%
16,0%
0,3%
During the year, the enrolment unit admitted 1,252 newly arrived pupils. That is an increase
of 88 % compared to the 665 newly arrived pupils admitted in 2014.
In order to meet this increased demand, some 900 new school places have been created. The
majority of the places were added by reclaiming premises let out to other activities but also
by erecting pavilions. The remaining demand for places has been met through densification
in existing schools.
In recent years, there has been a clear increase in the average merit value for Malmö’s
students in grade 9 in both municipal and independent activity. The average merit value for
Malmö’s pupils is below the national one, but the difference has shrunk. The reason for the
strong increase for 2015 is that as of 2015 the merit value is calculated in the National
Agency for Education’s statistics for 17 subjects (previously 16). However, the merit value in
Malmö did increase if applying the previous method of calculation. This can be seen from
the broken line in the chart below. The merit value for girls is about 10 % higher than for
boys. The difference has dropped by a good percentage point since the last academic year.
42
Source: National Agency for Education (SIRIS) 2
When it comes to the grades outcome for Malmö’s pupils in grade 9 who have achieved the
targets in all subjects and for pupils who have qualified for upper secondary school, the
results have instead declined since the preceding year. A corresponding decline has also been
observed nationally. In Malmö it’s the boys’ quote ‘that has deteriorated. An increase of
newly arrived boys affects the outcome. The difference in the total grades outcome by
gender differs greatly between schools.
MARKS RESULTS YEAR 9 ALL PRINCIPALS
Number qualified for upper
secondary school
Municipality Gender
2015
2014
Number who have achieved the
skills targets in all subjects
Change
2015
2014
Change
Malmö
girls
81
81
0
70
70
0
Malmö
boys
75
78
-3
65
66
-1
Malmö
all
78,2
79,5
-1,3
67,5
68,0
-0,5
85,6
86,9
-1,3
77,0
77,4
-0,4
Nationwide
Source: National Agency for Education (SIRIS)
Pupils can supplement their grades after having finished schooling with so-called summer
school and exams. In summer 2015, pupils from 22 of Malmö’s municipal schools
participated in summer school and an additional number of pupils qualified for upper
secondary school in this way.
Increased staffing and lower class and group sizes in the lower grades are a strategic effort in
order to reach target achievement for pupils all through their schooling. With the help of
government grants, 130 new staff have been employed in the F-3-activity.
During the year, many schools were hit hard by incidents of theft. Preventive measures for
safety and security seem to have shown an effect as incidents of theft dropped in magnitude
after summer.
2
Starting with the statistics for 2015, the merit value consists of the total of the great values for the best 17
grades in the pupil’s final certificate. The possible maximum value for each individual student is 340 points.
The previous merit value was calculated for the best 16 grades (max 320 points / pupil).
43
As the number of schoolchildren continues to rise, so does the number of children in afterschool centres. About 14,900 children were enrolled in after-school centres during the year.
That is an increase by about 1,000 children compared to the preceding year. The previous
increase in the share of children seeking a place seems, however, to have stopped. The chart
shows that even in 2015, 63 % of children
aged 6-12 years were enrolled in afterschool centres. The demand for boys is
about one percentage point higher than
that for girls. Compared to the country as
a whole, Malmö has a significantly higher
share of children aged 10-12 years and a
somewhat lower share of children between
6 and 9 years who have a place in afterschool centres.
The Schools Inspectorate, following targeted inspection, in October aimed criticism at a lack
of quality and comparability in Malmö city’s after-school centres. During spring 2016,
Malmö city as a mandator shall report measures taken to the Schools Inspectorate.
Labour market, upper secondary school and adult education committee
The upper secondary school and adult education activity covers upper secondary schools,
upper secondary special schools, municipal adult education, special education for adults and
Swedish for immigrants. As of 1 May 2014, the committee is also responsible for municipal
labour market efforts.
The net costs amounted to SEK 1,660 m during the year, an increase of SEK 165 m or 11 %
since the preceding year. The net cost is, however, not completely comparable with the
preceding year as the responsibility for labour market and adult education efforts shifted
during 2014. The increased net costs are, except for the changed mandate, mainly a result of
the price and wage development.
The number of students in upper secondary school
and upper secondary special schools amounted to
about 9,400, which is 125 less than the preceding
year. About 56 % of pupils in upper secondary
school have received tuition in schools operated by
the municipality. That is one percentage point less
than for 2014.
After last year’s increase, the number of Malmö
pupils in upper secondary school once again
dropped. This can be seen in the chart to the right.
Those youths who have not turned 20 years of age and who are not pursuing or have
completed education in national programmes in upper secondary school, upper secondary
special schools or equivalent education shall be tracked in accordance with the municipal
responsibility to be informed, KIA. Guidance centres contact youth, assist with guidance for
44
studying or internships and follow up. During the year, an average of 1,200 youth were
registered as part of KIA, of which about 46 % women and 54 % men. The number of
youth in KIA has dropped by about 8 % since the preceding year.
The chart shows that the number of pupils in
Malmö’s municipal upper secondary schools
dropped slightly during 2015. The number of
students amounted to 6,600 during the year, an
increase of about 140 students compared to
2014. The lower number of pupils from Malmö
was offset to a certain degree by the number of
pupils from other municipalities having
increased.
Of students in Malmö’s municipal upper secondary schools, about 55 % attendeduniversity
preparatory programmes during the year and around 15 % vocational programmes. The
number of students attending introductory programmes amounted to just under 1,750, or 26
% of the total number of students in municipal schools. Since last year, the number of pupils
in university preparatory programmes has increased while the number in introductory
programmes and vocational programmes dropped.
The increasing number of newly arrived pupils has entailed an increase in the number of
those applying for language introduction. At the end of the year, about 700 pupils were
enrolled in language introduction, which is 200 more than the preceding year. All municipal
upper secondary schools have prepared to accept new language introduction classes. During
spring 2016, a couple of independent schools will also accept students.
Ahead of the autumn term, Malmö city’s apprentice program moved into own premises.
Instead of being scattered across other secondary schools, all students are now at Malmö
Apprentice Centre on Stadiongatan.
During the year, there were about 600 fewer annual places for municipal adult education at
upper secondary school level. That is a drop by 20 % since the preceding year. At the same
time, the number of training places in Swedish for immigrants, sfi, increased by about 400.
Of the 4,000 annual places for sfi, 55 % were found in folk high school or other external
education coordinators.
In the area of the labour market, work on developing cooperation between various activities
in Malmö city and the Public Employment Service has been in focus during the year in order
to find new methods for reducing youth unemployment.
45
Culture and leisure
Culture committee
The culture committee’s net costs for 2015 amounted to SEK 374 m, an increase of 3.6 % or
SEK 12 m compared with 2014. The net cost development is driven by the price and wage
development.
A newly opened aquarium and several
exhibitions drawing large numbers of
visitors resulted in the number of
visits mainly to Malmö Museums, but
also to Malmö Art Museum,
increasing very strongly.
NUMBER OF VISITS PER CULTURAL INSTITUTION
2015
2014
Change
Malmö City Library
880 544
922 094
-41 550
Malmö Museums
437 616
264 940
172 676
Malmö Art Museum
241 074
167 973
73 101
Malmö Exhibition Hall
176 336
187 882
-11 546
By the end of 2015, Malmö culture school had increased from 2,200 student places to 3,750
student places. Furthermore, the El Sistema-activity has been established in three districts –
Holma, Kroksbäck and Sofielund – where Malmö culture school previously found it difficult
to reach students.
The new cinema Panora opened on Bergsgatan and Folkets Bio is running the activity. The
library bus is in place and the city library continues its work to reach all Malmö residents,
mainly by working closer to the city district libraries.
Malmö Live was inaugurated and the culture committee has put on activities in and outside
the building to make the place well-known to Malmö residents. This included Sommarscen
putting on performances on the bridges and the culture school has been using the Cube and
the big concert hall for its concerts.
Leisure committee
The committee’s net cost amounted to SEK 402 m, which was an increase of 9.6 % or SEK
35 m compared to the preceding year. The cost increase was mainly a result of operating the
new Hylliebadet indoor pool (SEK 25 m), increased rents for other facilities, increased costs
for grants to clubs and wage level development.
In mid-August, the new Hylliebadet was inaugurated and during 2015, 106,382 people visited
the indoor pool. A new municipal riding centre on Klagshamnsudden was also completed
and made available to Klagshamn’s riding association. Malmö city, together with the Swedish
Ice Hockey Association, organised the 2015 Ice Hockey Women’s World Championship.
The number of clubs registered with the leisure
services department amounted to 568 by the end
of 2015, an increase of 6 clubs compared to the
preceding turn of the year. The number of
instances when club participants qualified for
allowances, however, dropped by 4%. One
explanation may be that more children and youth
46
are seeking options for pursuing spontaneous activities without having to attend
regulartraining/competition. In order to meet this demand, the committee together with
clubs and associations is making efforts to arrange spontaneous activities which are free and
do not require membership. During 2015, 32 clubs participated in the committee’s drive for
spontaneous activities, to be compared with 5 clubs during 2014.
Culture and leisure in city districts
Total net costs for the culture and leisure activities in the city districts during the year were
SEK 144 m, which was SEK 9.8 m or 7.3 % more than the corresponding cost in 2014. The
activity consists of, among other things, city district libraries, youth recreation centres,
activity houses and other meeting places for youth and preventive work. In addition to
activities under own management, activities are also run in cooperation with clubs.
During the year, major cultivation work was initiated as part of Mötesplats Östra Sorgenfri, a
cooperation between City District Inner City, the Preschool Committee and Compulsory
School Committee as well as two clubs.
Thanks to the preventive measures in Seved, some 40 upper secondary school youth
received support for continuing their studies. Some ten students sat the high school exam
and those who completed their three-year training became qualified to continue studying.
During the summer the youth were employed to motivate children in the area, making young
adults important role models.
In November, the Oxie library reopened in new premises. The Oxie library’s new and more
modern premises have brought opportunities for expanded cooperation with civil society
and a bigger range of options for visitors.
Thanks to cooperation with VA Syd, ReTuren, Malmö’s first recycling centre opened in
November at Lindgården on Lindängen. At ReTuren, residents can drop off things they no
longer need and take other things with them back home. In addition to items for reuse,
residents can also drop off their hazardous waste and participate in creative activities.
As part of Kraftsamling Herrgården, in which some 60 players from the ideology-driven, public
and private sector collaborate, so-called Homeparties have also been held. Homeparties consist
of discussions on the subject of safety at home for women.
Visits to the meeting places for the newly arrived, especially children and youth, increased
during the year.
Health and social care
Individual and family care
The total net cost of the individual and family care activity was SEK 1,214 m (excluding
financial help) during the year, which was SEK 89 m or 10.8 % more than the preceding
year. The increase was 6.9 % in the city districts and 12 % in the social resources
committee’s activities.
47
Homelessness
Within the individual and family care activity area, work
with the homeless is included. The total net cost of
accommodation for the homeless amounted to SEK 260
m. This is an increase by 24 % compared to 2014, which
can be compared with an average rate of increase of 13
% per year during the last 10-year period.
The SEK 260 m relate to direct costs for accommodation in daily accommodation, hostels,
the Stadsmissionen, hotels, youth hostels, camping grounds, etc. and lost rental income from
housing in the apartments the municipality is renting and subletting to the homeless.
In addition to these direct costs, there are also costs for taking care of rental contracts,
finding apartments to sublet, preventive measures and the social services’ costs for planning,
follow-up and enquiries before making decisions with regard to social housing. Large parts
of these costs are included in the city areas’ core task for individual and family care and are
not disclosed separately as costs for homelessness. An educated estimate is that these costs
amount to another SEK 75 m, which is why Malmö city’s total costs for homelessness are
about SEK 335 m.
During 2015, 100 apartments from MKB were successively distributed among homeless
families with children who in May 2014 were living in expensive solutions of low quality. It is
primarily for the children’s sake that it is important that families are given safe and stable
housing quickly. The commission for a socially sustainable Malmö describes the state of
research regarding homelessness and its effects on children with factors including higher
health risks, poorer access to health and medical care and a higher risk of difficulties with
cognitive development. The addition of the 100 apartments also has positive economic
effects. A calculation made based on just over half of the apartments shows average savings
of SEK 22,500/month and apartment. If these calculations are representative of all 100
apartments, this means annual cost savings for the city districts of between SEK 14 m and
SEK 21 m, depending on how long the families stayed in the apartments. When 2015 began,
14 of the 100 apartments had been distributed and by the end of the year this number was
94. This means that on average 54 apartments were distributed during the year. For 2015, the
calculation thus means a cost reduction to the tune of SEK 7 m to 11 m. Without access to
these apartments, the total cost for homelessness would thus likely have been higher.
Some comparisons with preceding years’ outcome regarding daily costs for homelessness in
various forms of housing can be seen from the table below:
HOUSING FOR THE HOMELESS
2015
Change
2014
Cost per housing day
Apartments
45 kr
51 kr
-6 kr
-12%
Hotels
247 kr
278 kr
-31 kr
-11%
Housing by the day
662 kr
611 kr
+51 kr
+8%
Average for all housing form s
165 kr
137 kr
+28 kr
+20%
48
The number of housing days in total increased by 3 % compared to 2014. The increase of
housing days in hotels stood at 34 %, which corresponds to 52,900 housing days. That the
cost increase (24 %) is significantly higher than the increase of housing days (3 %) is likely
due to that the lack of apartments results in more expensive and poorer, with regard to social
sustainability, solutions being used, which often affects the children. The number of
applications to the social services for help with housing increased by just under 19 %
compared to 2014.
The total number of housing days corresponds to housing for on average just over 4,300
individuals per day or 1.4 % of Malmö’s population.
The annual survey of homeless people in October
showed that the number of homeless
amounted to 1,333 adults, of which 507 women and
826 men. The distribution by gender is thus 38 %
women and 62 % men, to be compared with 36 %
women and 64 % compared to the preceding year. The
number of adult homeless has increased by 191
compared to the preceding year, 100 women and 91
men.
The number of children in homeless households was
675, which was 208 more than in 2014. The survey is
not broken up into girls and boys. With the exception
of 2012, the number of children has increased annually
in the most recent five-year period. In the last three
years, the annual increase has been just over 40 %.
Financial assistance
The total net costs for financial assistance
amounted to SEK 960 m, which is a drop by SEK 8
m, just under 1 %, compared to 2014. This drop is
mainly explained by just under SEK 30 m related to
developing the work on maintenance support with
the aim of more Malmö residents becoming selfsufficient having been accounted for as part of the
allocation for financial assistance. As of 2015, this
cost will be accounted for at the city executive
board.
Revenue from government grants and costs for leisure time allowance are accounted for as
part of the allocation for financial assistance. For 2014, the leisure time allowance could be
granted as of the second half of the year. The leisure time allowance has shown a surplus
both for 2014 and 2015. For 2015, the government grant affects the allocation for financial
assistance as a reduced net cost of SEK 2.7 m. The leisure time allocation has been intended
for households with children in grade 4–9 who have been receiving maintenance support
49
during a longer period and have thus qualified for an allowance to cover the children’s
leisure time activities. The leisure time allowance was abolished as of 2016.
The costs for financial assistance to individuals increased by SEK 24.5 m compared to 2014.
The average number of
households per month receiving
financial assistance amounted to
10,000 during 2015, which was an
increase by 160, or just under 2 %,
per month on average. This means
that the slowdown, i.e. the
reduced increase, continues. In the
years before 2013, the annual rate
of increase was 7-8 %. The
average cost per household and
month was SEK 8,199, an
increase by SEK 44 or 0.5 %
compared to the preceding year.
FINANCIAL ASSISTANCE
Num ber of m onths w ith assistance in last 48 m onths of
households w ith assistance in Decem ber of the
respective year
1-3
2015
2014
2013
2012
2011
1 434
1 492
1 355
1 287
1284
4-6
825
815
816
778
729
7-9
653
659
648
578
579
10-12
538
542
546
525
455
13-24
1 681
1 526
1 569
1 486
1418
25-36
36+
Total
989
994
1 017
1 001
983
4 162
4 121
3 991
3 696
3378
10 282
10 149
9 942
9 351
8 826
Of the 10,282 households receiving
financial assistance in December 2015,
4,162, or 40 %, had been receiving
assistance for 36 months or more during
the last four years.
Causes for maintenance support cases
being discontinued are shown in the chart
below.
Working and studying have always been in
focus as causes for assistance being
discontinued, but the degree of selfsufficiency, other cause, is also of interest.
In self-sufficiency, other cause, those who
become self-sufficient thanks to, for
example, sickness benefits, pension or
introduction benefit appear. Processing
times at, for example, the Social Insurance
Agency or unemployment fund affect
how long the periods of assistance for
these groups are.
50
Child and youth care
The number of reports concerning children who
have hit bad times increased by 26 % compared to
2014, from 8,405 to 10,622. The most common
causes for updates were a possible lack of care for
children (1,842), threats/violence in the family
(1,272) and possible abuse on part of the legal
guardian/other adult (1,109). The highest increases
between the years relate to children arriving alone
(277 %, from 250 to 942), housing problems (102
%, from 46 to 93) and environments of risk (87 %,
from 222 to 415).
Healthcare for the elderly and people with disabilities
In the field of health and social care for the elderly and people with disabilities, a number of
changes occurred in the activity during 2015. Something affecting almost all users were the
new fees for social care introduced at the beginning of the year. This included changes to the
fees for safety alarm, personal care and special housing and new fees for healthcare at home
were introduced. The changes to the fees are the first to have been introduced since 2001,
and they were implemented at the same time as Malmö city switched to new IT-support for
the activity in health and social care. Some start-up problems resulted in a number of
incorrect invoices being sent to users at the beginning of the year. But intensive efforts were
undertaken to correct the initial problems.
In connection with the introduction of a new operational system, the National Board of
Health and Welfare’s assessment model BIC was introduced, called Behov i centrum (need
at the centre), based on the international standard ICF, International Classification of Functioning,
Disability and Health. The aim of BIC is to facilitate systematic assessment of the individual’s
need for support and help, taking into account the user’s preference. By introducing a
standardised language, communication between assistance case officers and staff in the
activity is also facilitated when carrying out aid efforts.
During the year, government stimulus funds were approved for increased staffing in elderly
care for the years 2015-2018. A total of SEK 1 billion were allocated for 2015 and SEK 2
billion per year 2016-2018. Malmö’s share of the drive amounted to SEK 30 m 2015. The
aim of the stimulus funds is to create higher security and quality for the individual within
elderly care by means of more staff. The government also sees that higher staffing can create
more room for personnel to spend more time with the individual, but also provide greater
opportunities for personnel to jointly develop the activity. Elderly care in Malmö has used a
total of SEK 28 m of allocated funds to increase staffing in home-help service as well as
special housing. Private executors also benefited from the stimulus funds.
Net costs for health and social care for the elderly and people with disabilities and amounted
to a total of SEK 4,045 for 2015, which is an increase by SEK 120 m or 3 % compared to
2014. The reasons for this increase can be seen in the respective section below.
51
Care for the elderly and people with disabilities according to the Social Services Act
Care for the elderly and people with disabilities according to the Social Services Act consists
mainly of efforts in regular housing, such as home-help service and short-term care, and in
special housing. These activities made up 66 % of total net costs. In total, costs for these
activities increased by 0.9 %, including the year’s price and wage increases. The chart below
shows the cost development for home-help service, short-term care and special housing for
the last 10 years, cleared of budgeted price and wage development. The chart also shows the
same costs, but cleared of the development according to the social care price index, OPI.
The social care price index reflects the actual cost and wage development in the health and
social care sector across the nation.
When the effects of budgeted price and wage developments are eliminated, it becomes clear
that the net costs for 2015 are almost down to the same level as in 2006. The net costs
cleared of the actual price and wage development in the sector, according to OPI, are
however at a lower level than in 2006. The number of users for the same period, 2006-2015,
increased by almost 6 % as a result of a big increase in the number of users 90 years and
older, which can be seen in the chart below to the right.
The table to the left shows the
cost and volume development
Change
2015
2014
per activity between 2014 and
Num ber of recipients
2015. In the home-help service,
Home-help service
saknas
7 448
there have been problems with
Short-term care
274
266
8
3,0%
statistics for the number of users
Special housing
2 108
2 177
-69
-3,2%
as a result of switching to a new
Total num ber of recipients
9 892
operational system and new
Total cost per effort, SEK m
classification of efforts. Quality
Home-help service
1 124
1 124
0
0,0%
assurance is underway in order
Short-term care
243
211
31 14,9%
to avoid similar problems in the
Special housing
1 339
1 348
-9
-0,7%
future. The activities do,
Other efforts*
117
112
4
3,7%
however, complain of a certain
Total costs
2 823
2 796
26
0,9%
increase in the number of users
* Daily activity, meeting places and other open efforts
discharged from hospital to be
cared for at home, which has led to a high number of users in home-help service as well as
home nursing. Some of these also require more advanced health and social care efforts.
EFFORTS ACC. TO SOCIAL SERVICES ACT and HEALTH AND MEDICAL
SERVICES ACT
A higher number of discharges from healthcare and an increase in the number of users of
home-help service with temporary deterioration in health has increased the demand for
52
short-term care. The number of short-term placements has increased by 3 % and costs by
almost 15 %. The cost increase is partly a result of excess capacity of places under
management and of framework agreements, which have led to vacant places in Malmö city’s
own activity where it has not been possible to fully adjust costs to the low level of
occupancy. During autumn and winter, efforts were made to convert some short-term places
to meet the demand of other groups of users than previously and thus improve occupancy.
Cooperation is also pursued with Skåne University Hospital to improve the healthcare
planning process and better meet users’ requirements when being discharged from inpatient
care.
In special housing, the number of annual places has dropped by 3.2 % in relation to 2014.
The costs, however, have not dropped as much but declined by only 0.7 %. Part of the
explanation for the costs not dropping at the same rate as the number of care recipients is
that occupancy in some of the city’s own housing has been low and that costs have not been
fully adapted to the low occupancy. A reason for the low occupancy in some special housing
has been that there is a surplus of residential care, but a lack of places for users with
dementia which has led to waiting times during the year for places for that target group. In
several special housing facilities in the city, conversion of places from residential care places
into places for persons with dementia is underway so as to meet the changing demands. At
the same time, there has been some phasing out of places which are no longer considered as
being suitable. One residential care facility has also been converted into sheltered housing.
Care for people with disabilities according to LSS
Care for people with disabilities according to LSS (Act of Support and Services for People
With Certain Disabilities) consists mainly of housing with special service, daily activity and
personal assistance with decisions for social assistance by Malmö city as well as personal
assistance acc. to SFB with a decision by the Social Insurance Agency. The total costs for the
LSS-activities increased by 6 % in relation to 2014.
The greatest cost increase
took place four housing with
special service according to
Change
2015
2014
Num ber of recipients
LSS, where costs increased by
LSS-housing
872
880
-8
-0,9%
5.6 % despite the number of
Daily activity
708
688
20
2,9%
users in the activity having
Personal assistance acc. to SFB
476
456
20
4,4%
dropped somewhat. A major
Total num ber of recipients
2 056
2 024
32
1,6%
part of the cost increase is due
to the extension of LSSTotal cost per effort, SEK m
housing 2014 and 2015. The
LSS-housing
669
634
35
5,6%
costs per place are generally
Daily activity
143
136
7
5,1%
higher in new LSS-housing
Personal assistance acc. to SFB
142
134
8
5,9%
than in an existing one, at
Personal assistance acc. to LSS
79
74
5
7,2%
least in the first years. This is
Other efforts acc. to LSS
124
114
10
8,6%
Total costs
1 157
1 092
65
6,0%
partly due to higher premises
costs in newly built properties
but also that it takes some time from start up until the housing is full. Costs for external
placements also increased somewhat as a result of a number of new placements with special
EFFORTS ACC. TO ACT OF SUPPORT AND SERVICES FOR PEOPLE WITH
CERTAIN DISABILITIES
53
needs. External placements are made in those cases in which the users’ needs cannot be met
by Malmö city’s LSS-housing, for example when needing a peaceful country environment or
the school being near the housing. Development of the activity is underway in Malmö in
order to be able to reduce the number of external placements and prevent the need for
future placements.
During the year, attempts were made to develop a user survey for target groups in housing
with special service according to LSS. The aim of the questionnaire was to create
participation and increase users’ possibility for influence and self-determination. The user
survey was carried out during 2015 in housing for intellectually challenged users and those
with autism or conditions similar to autism and with acquired disabilities as a result of brain
damage (category of persons 1 and 2). The survey is web-based and built up around
pictograms, which has also been successfully used by other municipalities.
The number of users in daily activity increased by just under 3 % in relation to 2014,
resulting in a five percent cost increase. The cost increase is also due to several new users
being in greater need of support than previously and that a new activity was started up
during the year. The activity has been restructured several times during the year, also in order
to prove the usage of the activity’s premises and improve the location of certain activities,
such as Bokbytet which has moved to premises in central Malmö allowing it to reach a wider
target group of Malmö residents.
The costs for personal assistance with decisions by the municipality increased by more than
7 %. The number of hours with personal assistance has increased by 3.2 %, which is part of
the explanation for the cost increase in addition to a certain increase in the hourly rate.
Activities concerning displaced people
During autumn 2015, more displaced people arrived in Sweden and Malmö than ever before.
Malmö city’s administrations carried out enormous efforts during autumn to ensure that
children arriving alone were well taken care of and to assist the Migration Agency and other
players in creating a safe and dignified reception with greater legal certainty. The great
number of displaced people who arrived in Malmö during autumn prompted Malmö city’s
crisis management team to be activated in order to support other administrations and
coordinate contacts with other authorities. The crisis management team Krisorganisationen was
disbanded in January 2016.
The municipality’s obligations during various stages of the asylum
process
The allocation of responsibility and obligations between administrations, in particular the
municipality and Migration Agency, is different during different stages of the asylum process.
For example, the municipality has great responsibility for asylum-seeking children arriving
alone, but less responsibility for asylum-seeking adults and families. For children arriving
alone, the municipality shall arrange housing and support while the Migration Agency is
responsible for adults and families. If the refugee, adult or child, can arrange his/her own
housing (children arriving alone may be assigned housing with a family member if one is
already in the country) the allocation of responsibility is further complicated. If a residence
54
permit is then granted, the responsibilities change once again. The refugee situation in
autumn will thus likely affect the municipality for several years to come.
Reception of children arriving alone
The social resource committee has the main responsibility for receiving children arriving
alone with, among other things, housing on arrival and child-welfare officers who assess the
children’s needs on arrival. From having received an average of five children per day in
spring, the committee’s activity received no more than 268 children per day during autumn.
The chart below shows the development in the number of children arriving alone per year
for the years 2011–2015. The strong increase during autumn 2015 necessitated enormous
mobilisation of premises, furniture and bedlinen and not least personnel. At the end of May
2015, there were a total of 90 places in arrival housing with the social resource committee
and when the number of children arriving alone was at its highest in Malmö, there were
2,524 places in arrival housing in November. A total of almost 2,000 housing staff were
employed in the period September–December. In addition to this, the number of childwelfare officers was increased and a staffing unit was formed in order to carry out all
recruitments.
In its work with receiving children arriving alone, the social resource committee has been
supported by a number of other committees. The City District committees, for example, lent
out child welfare offices and other personnel for certain periods, and the service committee
has been playing a key role in acquiring and equipping premises for arrival housing for
children arriving alone as well as supplying meals for the housing facilities. Staff has also
been provided on loan by the school committees. While this has meant that the city has
managed to mobilise support for receiving the higher number of children arriving alone, this
has also had consequences for the other activities. The schools, for example, have found it
difficult to get hold of substitute teachers as these have been working with children arriving
alone, and in the social services processing times have increased as a result of child-welfare
offices being reassigned to other tasks.
The City District Committees have also felt the increase of children arriving alone as they are
responsible for those who state on arrival that they have family relations in Sweden. In such
cases the social services shall investigate whether the relation entails a suitable housing
situation for the child and, if this is assessed as not being the case, investigate a transfer to,
55
for example emergency homes, family homes or HVB (home for care and housing). This has
further increased the strain on the social services in the city districts. The city districts also
portray an increased number of visitors in their various activities which offer various kinds
of training sessions for finding one’s way in society as the newly arrived have been seeking
information and guidance. Meeting places and other open activities, such as libraries, have
also seen a higher number of visitors.
Asylum-seeking children at school
Children seeking asylum have the same right to go to school as other children in Sweden.
The higher number of refugees in Malmö during autumn thus entailed a greater inflow of
pupils to the compulsory school committee’s Enrolment unit and the Reception school Mosaik. All
newly arrived pupils are enrolled via the Enrolment unit and pupils in age groups for grades 79 begin their tuition at the Reception school Mosaik. In addition to a higher number of pupils in
these two activities, the increased number of pupils has resulted in a higher number of pupils
in all schools in Malmö as the committee works to distribute the responsibility for newly
arrived pupils across several schools.
Unfortunately, there are no separate statistics about the number of newly arrived asylum
seeking pupils. According to the education act, newly arrived pupils are defined as asylum
seeking refugees, EU citizens having moved in, pupils with permanent residence permits or
pupils with parents who work in, for example, certain international organisations and
embassies. The compulsory school committee, however, has made an assessment based on
information from the Migration Agency that the number of asylum-seeking children at
school, converted to full-year pupils, amounted to 164 for 2015, which is an increase of
about 140 % during 2015.
Other obligations for receiving displaced people
In addition to receiving children arriving alone and schooling for asylum-seeking children,
Malmö city has carried out a number of other activities during autumn 2015 as a result of the
increased number of displaced people in the city.
One example of such an activity is the establishment of an arrival centre Posthusplatsen near
the Central Station. The aim of the arrival centre was to create a place where authorities and
aid organisations could work to create a dignified reception for refugees near the station. At
the arrival centre there were representatives from the Migration Agency, the Red Cross, the
Salvation Army, and Refugees Welcome to Malmö. The arrival centre opened at the
beginning of October and was dismantled in December.
Another example is the team with so-called guides which during autumn worked virtually
around the clock near the Central Station. They were tasked with meeting up children
arriving alone directly at the trains, provide them with the information in their mother
tongue about how the reception process plays out and what care/caretaking Malmö city
offers. The aim has been to protect the children from dubious players, create security and
ensure that they receive correct information. Thanks to their language skills, the guides could
also be used as interpreters to provide correct information from and to other authorities.
56
Additional costs for reception of displaced people during 2015
The increased number of refugees in Malmö during autumn 2015 and the consequences this
entailed for the municipality’s activities have resulted in higher costs for Malmö city during
the year. Large portions of the reception of asylum seeking children arriving alone are
financed through allowances from the Migration Board. Such government allowances are
also paid for a number of other activities in the municipality, such as enquiries for children
arriving alone with family relations, schooling for asylum-seeking children and allowances for
HVB-placement of children arriving alone.
All committees were requested in their annual analysis to make an assessment of how great a
proportion of the net costs intended for activities associated with the increasing number of
displaced persons in Malmö in autumn 2015 and which additional costs this has meant in
relation to the corresponding costs for 2014. According to these assessments, Malmö city’s
total additional costs for refugee reception amounted to about SEK 130 m, which means
that net costs increased by about 65 % in comparison to 2014.
Area programme for a socially sustainable Malmö
Area programme for a socially sustainable Malmö was a five-year investment (2010-2015) aimed at
improving living conditions, increasing security and creating more jobs in the areas in Malmö
where welfare is at its lowest. By influencing the development in five areas, the area
programme aims to increase the social sustainability in all of Malmö. The five prioritised
areas are Herrgården, Holma/Kroksbäck, Södra Sofielund/Seved, Lindängen and Segevång.
The area programme was concluded in 2015 with a big final conference and a final report.
As part of the area programme, a number of initiatives for solutions and methods could be
tried in order to achieve higher social sustainability in the prioritised areas. The core has been
participation and involvement of the individuals and players who live and are active in the
areas. Malmö residents and cooperating organisations have been involved in formulating
problems as well as finding solutions. This way, the solutions have been reflecting Malmö
residents’ actual needs. Utilising the initiative of residents has at the same time positively
stimulated development in the areas.
The area programme has been about physical changes in the city environment as well as
social efforts to, for example, increase the options of those receiving support for becoming
self-sufficient. Extensive physical changes are also underway in the five prioritised areas in
the form of new construction, condensing development, parks, walking and cycling lanes
and gardens. In connection with the new construction and improvements that are carried
out, social clauses will also be introduced if possible which bring on employment for those
residing in the area. This was the case for example at Lindängen when a real estate company
committed to employ the unemployed from the area in exchange for Malmö discounting the
land rent.
The area programme has provided Malmö with a number of important experiences in its
work with increased social sustainability. Several parts of the area programme remain and
have now become regular activities and the programme has generated additional knowledge
which can be drawn on in the future.
57
THE MUNICIPALITY’S COMPANIES
On 16 December 2014, the city council in Malmö decided to form a corporate group by
transferring ownership of the city’s wholly-owned limited companies to the also whollyowned limited company Stadsberget nr 1 Malmö (now called Malmö Stadshus AB following
group formation). The group formation was completed as per 31 December. As a result of
the group formation, Malmö city gets a group under the Companies Act as well as under
fiscal law in form of a directly owned parent company and six indirectly owned subsidiaries.
The municipality’s corporate structure thus becomes clearer and opportunities are created
for better and more centralised management of the companies and the municipal economic
administration. The six wholly-owned companies included in the group are Malmö Stadsteater
AB, Malmö Live Konserthus AB (formerly Malmö SymfoniOrkester AB), Vagnparken i Skåne AB,
Minc I Sverige AB, Malmö kommuns parkeringsaktiebolag and MKB Fastighets AB.
Turnover and result
The municipality’s businesses had a turnover of SEK 5,863 m during the period, compared
with SEK 5,651 m during the preceding year. The companies are as follows:
TURNOVER, SEK M
MKB-group
2015
2014
Participating
interest
2 018
1 898
100%
SYSAV-group
843
825
46%
VA Syd (local federations)
996
1 019
67%
CMP, Copenhagen Malmo Port
801
791
28%
Rescue Services South (local federations)
294
292
60%
Malmö Kommuns Parkering AB
297
274
100%
Sydvatten AB
277
271
34%
Malmö Live Konserthus AB
155
103
100%
Vagnparken i Skåne AB
92
93
100%
Malmö Stadsteater AB
90
85
100%
The companies’ results (before appropriations and tax) have dropped to SEK 378 m in total
compared to SEK 425 m in 2014. It shall be noted, however, that Malmö Stadsteater AB and
Malmö Live Konserthus AB did not receive any operating subsidy from Malmö city in 2015 as
was the case in previous years. Financing for 2015 has instead taken place by means of a
group contribution, which has reduced the aforementioned result by a total of about SEK
163 m. Thus SEK 163 m shall be added to the SEK 378 m so comparison can be made to
the preceding year’s result of SEK 425 m. Major profits are recorded by Copenhagen Malmö
Port AB with SEK 72 m (SEK 90 m 2014) and MKB-koncernen with SEK 378 m (SEK 278 m
2014).
58
Development in the bigger companies
The Group MKB Fastighets AB
MKB Fastighets AB (MKB) is the parent company in the group. In addition to MKB, the
group also comprises the subsidiary NKB Net AB, which conducts activity associated with
the group’s broadband network. MKB is Malmö’s largest housing company with a market
share of around 33% of the rental market. This means that the company is Malmö’s main
landlord.
In 2015, a total of 505 apartments were completed (385 in 2014) and at the end of the year
production of another 920 apartments was underway (787 in 2014). As a result of the
continued development of cooperation between MKB Fastighets AB, Malmö city’s
administrations and trade and industry, several city development projects are ongoing, for
example Holmastan in Holma and the chance to realise Culture Casbah in Rosengård is being
examined.
A dispute from the beginning of the 2000s was decided in the court of appeal in November
2015. Hifab Group AB was adjudicated to pay about SEK 68 m to Rimp AB in liquidation
bankruptcy estate, where MKB Fastighets AB is the main claimant, following a prolonged
dispute against what was then Fiberdata concerning broadband installation. An application
for leave to appeal has been submitted.
The age structure of the property stock, with a high proportion of houses built before 1975,
means that there is a readiness to continue with significant maintenance work in the coming
years. The extent will be determined based on, among other things, capacity in the market,
pricing and the conditions for maintaining a high rate of new production. Maintenance and
improvement investments, also in form of apartment maintenance, façade renovation,
reroofing and bathroom renovations, took place to a great extent during 2015 and amounted
to SEK 570 m (573 year 2014), of which SEK 402 m (367 year 2014) were carried as
maintenance expenses. The company’s credit rating for long-term financing was upgraded
during the year to AA (från AA-) by the credit rating institute Standard & Poor’s. MKB has
all its loans, SEK 6.6 billion (5.0 year 2014), with the internal bank in Malmö city.
The demand for rented housing has remained very strong during the year. Almost all the
sub-markets are characterised by shortages. The number of non-leased apartments at yearend amounted to 368 units (130 year 2014)or 1.6 % of the stock, which corresponds to 1.6
percent (0.6 year 2014) of the stock. The higher number of vacancies is due to that many
apartments in the project Lokal till Hem were completed towards the end of the year. Other
vacancies are due mainly to apartment renovations and modernisations. The turnover of
apartments dropped somewhat and amounted to 12.3 percent (12.6 year 2014). Demand for
newly constructed apartments is not quite as strong as for apartments in existing stock, as
the rent is often perceived as being relatively high.
The group’s result after tax for the year amounted to SEK 400 m (278 year 2014). Total
investments for the year amounted to SEK 1,850 m (756 year 2014), of which SEK 410 m
do not affect cash flow this year. Of investments, SEK 1,426 m (537 year 2014) were related
to new construction, including land, and the project Lokal till Hem and SEK 168 m (207 year
59
2014) were invested in rebuilding and improvements. Furthermore, SEK 235 m were
invested in acquiring two industrial properties so as to secure future construction rights.
The market value of the properties has been calculated by MKB to be SEK 28,061 m
(24,150 year 2014) as on 1 January 2016. The estimate follows the guidelines of the Swedish
Property Index (SFI). It is done with the aid of a yield-based method, where future operating
nets, higher maintenance requirements and the residual value at the end of the calculation
period are assessed for each individual property.
Sydskånska avfallsaktiebolag, SYSAV
Sysav is owned by 14 South Scania municipalities. Sysav has two wholly-owned subsidiaries,
Sysav Industri AB and Sysav Utveckling AB. The group also includes six partnership
companies. Sysav is responsible for regional waste processing and recovery in southern
Scania.
The parent company, Sysav, South Scania’s waste joint stock company, deals with domestic
waste from the 14 owner municipalities.
The subsidiary, Sysav Industri AB, deals with combustible domestic waste form
municipalities and areas outside the Sysav region and from businesses and
activities.Collection and transportation of the waste to facilities is undertaken by the partowner municipalities and contractors.
The subsidiary, Sysav Utveckling AB, finances and operates projects aimed at increasing
recycling and decreasing landfill.
The group’s turnover amounted to SEK 842.9 m (817.8 Mkr year 2014), the operating profit
amounted to SEK 64.1 Mkr (56.2 year 2014), and the result before appropriations and tax to
SEK 44.1 m (28.3 m year 2014). The parent company’s turnover for the year amounted to
SEK 411.3 m (396 m year 2014), the operating loss amounts to SEK -61.1 m (-46.9 m year
2014) and the loss before appropriations and tax to SEK -81.4 m (-72.3 m year 2014). The
group’s balance sheet total amounted to SEK 2,170.7 m (2,202.7 m year 2014). The balance
sheet does not include the leased asset in line 4 in the waste incineration plant. The costs for
the leasing are accounted under the company’s other external costs. The income for received
amounts of household waste are at the same level as the preceding year while the
corresponding income for industrial waste has dropped due to lower amounts of imported
waste. Energy deliveries were characterised by a high level of availability with higher volumes
but at the same time historically low electricity prices. Prices were somewhat higher
compared to the preceding year. Provisions have been made to meet future costs for
termination and management of closed landfills. Write down of shares in the associated
company KS-Recycling by SEK 11.5 m.
Copenhagen Malmö Port
Copenhagen Malmö Port AB (CMP AB) has the contractual assignment of operating and
developing the port activity in both Malmö and Copenhagen. The agreement for this applies
up to and including 2035. CMP AB leases the City of Malmö’s port facilities and
Udviklingsselskabet By & Havn I/S the port facilities in Copenhagen.
60
Since the start of 2011, the City of Malmö is a direct owner in CMP AB with a holding of
27.5 %. Operating profit for 2015 amounted to SEK 71 m (89.5 m year 2014), which means
an operating margin of 9.3 % (11.7 % year 2014) and a lower result by SEK 18.5 m
compared to the preceding year. The exchange rate during 2015 affected income negatively
by SEK -8.7 m and the result was affected by SEK -1.3 m. The majority of the difference in
result is explained by the one-off income CMP received in 2014 of SEK 15 m which directly
affected the result positively by SEK 15 m. 2015 also brought with it increased costs for
usage rights by SEK 5,4 m, which is mainly due to market adjustment of the base rent.
During 2015, CMP continued working on the planned cruise ship quay in Visby which CMP
will be renting from Visby municipality in order to run cruise ship operations as of spring
2018.
Malmö Kommuns Parkering AB
Malmö Kommuns Parkerings AB provides parking in Malmö, in its own facilities and on behalf
of property owners. The company also undertakes, on behalf of the Traffic Management
Office, parking monitoring of Malmö’s streets and squares.
An important area of focus during 2015 was to bring about good accessibility for cars and
improve the parking situation in the area around Malmö Live. Constructing the parking
superstructure Godsmagasinet and taking the parking block Malmö Live into operation went
off smoothly. Occupancy in the facilities has been beyond expectation and even large-scale
events have been held without any major incidents.
The ambition has been to gradually phase out coin management in the activity. During 2015,
almost half of all coin-operated machines were removed or replaced. This work will continue
during 2016 and in connection with new coin nominations being introduced in Sweden, the
ambition is to have only a minimal number of coin-operated machines remaining. Payment
options with coins shall be replaced in favour of alternative means of payment such as
mobile phone payment. A new procurement for a mobile phone payment system will take
place during 2016.
In terms of result, 2015 was a major step forwards and the result for the year shows a
surplus of SEK 17.2 m (SEK 8.1 m year 2014) before appropriations and tax. For 2016, a
surplus of SEK 17.3 m is budgeted. The difference between tax and accounting depreciation
on buildings results in deferred tax of SEK 2.6 m (SEK 2.5 m year 2014).
The pace of investment increased further during 2015 but is expected to stagnate during
2016. The increase is due to new construction having started on a parking structure in Hyllie,
which is expected to be completed in spring/summer 2016. During 2015, the superstructure
of the existing parking block Godsmagasinet was also completed. Investments were
managed within the existing loan frame of SEK 600 m.
Malmö Stadsteater AB
Stage activities were run during the year on Hipps large stage, Studion and Intiman. In
addition, touring performances were held in the region with the show Vilja väl. Operating
61
subsidies including group contributions are shared to 75 % by Malmö Stadshus AB, 25 % by
Region Skåne (including government grants).
Ticket revenues did not reach the budgeted level and the inflow of audience also fell below
expectations. In recent years, the theatre has been running educational activities with a range
of theatre classes that have been sold to schools and which have received Creative School
funding for cultural purposes. The company in 2014 received the first contribution subsidy
from Malmö municipality and Region Skåne to start the Unga Teatern (Young Theatre) with
a focus on children and youth, offering theatre and educational activities. 2015 is the second
year of three in establishing Young Theatre to become the child and youth activity within the
dramatic arts that the city and region needs. The reorganisation carried out during 2013
regarding the communication and technical section was consolidated during 2015.
Cooperation with the Framtidsgenerationen (Future Generation) Foundation continued
during the first quarter of the year with the performance Vilja väl (Wanting well) touring the
region. The company produced the play, which is based on stories from youth in Malmö.
Work began in 2013 to collect stories and the performance was written and produced in
2014 with première at Hipp in October. The project also includes cooperation with the
Schaubühne in Berlin, exhibitions, cartoon books, etc. The Framtidsgenerationen Foundation is
financing a major part of the project with help from the Culture Foundation of the Swedish
Postcode Lottery.
Efforts to increase basic financing by the municipality, state and region continue as they are
the company’s main sources of financing. The chances of increasing own income are also
reviewed regularly, e.g. the ticket price structure. As a result of putting a new ticket sales
system into operation, relationship marketing will be intensified as a tool for this is available
in the system.
Malmö Live Konserthus AB
In 2015, the company was given new ownership directives, a new board, and a new concert
hall , Malmö Live. This resulted in completely new conditions compared to previous years.
The activity, which before focused on Malmö symphonic Orchestra and to a certain extent
renting out of the concert hall to external players, has now been broadened with an
additional three pillars for the activity. As of autumn 2015, the activity has also included a
cultural policy program, set-up and creating a meeting place in the house. At the same time,
there is demand for a higher level of self-financing by means of letting office premises,
concert halls, spaces in common areas (foyers) and higher revenues from ticket sales. The
new activities and higher requirements for self-financing have brought with them new
requirements on staff competency and skills. The company has increased the number of staff
to manage the new activity. These new positions have been for parts of the year, and will
have full-year impact during 2016.
The request for a conditional shareholders’ contribution has been submitted to the owner.
This in order to secure the level of activity during the coming year to be consistent with the
way it was during autumn 2015. The matter has not yet been decided and thus the activity
level during the coming year is still uncertain. Work on increasing self-financing, via ticket
revenue and other external financiers, has proceeded well during the year and the company
62
continues to be active in strengthening this financing and reduce the dependency on grants
to run the activity.
The financial result after tax for 2015 was SEK -154,000, to be compared with the result for
2014 of SEK -167,000.
Sydvatten AB
Sydvatten AB has the task of preparing and distributing drinking water of a high and
consistent quality to its owner municipalities. For this purpose the company employs the raw
water sources Bolmen, Vombsjön and Ringsjön.
The company owns and operates the Bolmen tunnel, Ringsjö works and Vomb works as
well as the main piping system for the distribution of drinking water.
The board in 2015 decided that untreated water from Bolmen Lake shall be available
throughout the Sydvatten region. This means that the transfer pipe from Ringsjö works to
Vomb works shall be constructed. By being able to carry water from Bolmen to Vomb
works, not only is raw water redundancy created, it also provides opportunities to increase
production both momentarily and gradually. Furthermore, Bolmen water provides better
opportunities to respond to future climate changes, which are estimated to affect Vombsjö
lake to a greater extent than Bolmen.
The drinking water pipe to Ängelholms municipality is completed. As of 8 April 2015, the
municipality gets 50 % of its drinking water from Sydvatten. Total investment for the project
has amounted to SEK 80 m.
In order to improve the quality of untreated water from Vomb Lake, a research project was
carried out during 2015. By letting the water pass a chemical precipitation stage before it is
released into the infiltration basins, the phosphor content and the quantity of cyanobacteria
in the water can be reduced.
The legal process with E.On/Statkraft, which is conducted in the environmental courts
regarding compensation for power losses in the water system of Bolmen and Lagan lakes,
has not yet reached a decision. An enquiry regarding the extent of the damage has been
carried out and submitted to the court. The main proceedings in the case are expected to be
held in May 2016.
Räddningstjänsten Syd
Räddningstjänsten Syd [southern rescue service] is a municipal association in which the rescue
services for Burlöv, Eslöv, Kävlinge, Lund and Malmö are organised and operated. The area
of activity is aimed at preventive work designed to prevent and limit accidents in the
community, as well as prepare and carry out rescue services in an efficient manner.
During 2015, Räddningstjänsten Syd completed the action programme period 2012-2015.
Follow-up of the impact goals indicates better results in accident development and the ability
of individuals to prevent and act in case of fire and accidents. Among other things,
residential fires dropped by 25 % during the period and the number of fatalities from
63
accidents continues to be at a low level. During the year, the increased inflow of refugees
resulted in a redistribution of resources in order to be able to assist municipalities in matters
of fire safety in housing.
The majority of development tasks were completed during the action programme period. No
major fires or accidents that exceeded the ability of Räddningstjänst syd occurred during the
year. With regard to fires in houses and apartments, a drop could be noticed while fires in or
near schools increased.
Regional cooperation continued to be developed. A joint management structure and staffing
of certain management roles was established at the rescue coordination centre at Hyllie fire
station. All municipalities in District South now participate in these functions.
Arbetet med att skapa en jämställd och mångfaldig räddningstjänst har pågått under hela
året. Brandstation för alla har avslutats och en lärandekonferens genomförs i mars 2016.
Financially, the year 2015 adds up to a surplus of SEK 2.13 m. Reasons contributing to the
surplus include somewhat lower costs for the special collective agreement occupational
pension and lower other operational costs for the association’s fleet of vehicles.
For 2016 and the head, the association is facing several challenges in the field of financing,
among other areas. Vehicle acquisitions, costs for premises and investments take up a large
part of the association’s budget. These are affected by replacement requirements, new
purchases and higher rental costs, which to a certain extent are beyond the association’s
ability to influence. At the same time, management has adopted a new action programme for
the period 2016-2019, which will bring new tasks.
VA Syd
VA Syd is a municipal association consisting of the water and sewage activities in Malmö,
Lund, Burlöv and Eslöv. In addition to water and sewage matters the association is also
responsible for waste processing in Malmö and Burlöv.
On 31 August, extreme rainfalls hit Malmö and parts of Burlöv, which according to
VA Syd’s rain gauge equalled a so-called 200-year rainfall across almost the entire area.
VA Syd entered crisis-mode and worked intensely for several days to make sure the water
supply and sewage system worked as it should, with great focus on the major pumping
stations. A rainfall like this exceeds the capacity of the pipe network and pumps, and the
result was extensive flooding of land and basements. The entire water supply and sewage
system was subjected to major strain due to high pressure and flows, but also the load of the
huge volume of gravel, oil, grease, etc. that was flushed out by the rain. So far, some 2,000
incidents of flooding have been reported to VA Syd, which is more than for any other
known rain incident in Sweden. Significant efforts with regard to customer relationship
management, investigation and settlement of claims remain. The cost estimate for the
damages in the final accounts for 2015 reaches a total of SEK 135 m, for VA Malmö SEK
131 m and four VA Burlöv SEK 4 m.
64
During the year, the goal to separate out 40 % of the food waste in Burlöv and Malmö was
reached. When the project was started in 2012, VA Syd collected 12 % of food waste.
Together with the member municipalities, VA Syd worked on meeting the shared challenge
of reducing the consequences of extreme rain in 2015.
VA Syd is working to create a uniform fee structure for the member municipalities. With a
uniform fee structure, communication with customers is facilitated while internal
management is also simplified. This is scheduled to be introduced for Malmö in 2017.
65
FINANCIAL REPORTS
Overview of net result
Amounts in millions of SEK
RESULT
Budgeted result
Budget deviation
0
563
Result
563
BUDGET DEVIATIONS
Service committee
City executive board
Financial assistance
City building committee
Environmental committee
Technical committee
Profits from property sales
Upper secondary and adult edu
Comprehensive school committee
Preschool committee
Culture committee
Recreational committee
67
96
-11
15
1
13
176
11
10
6
3
8
Personal assistance acc. to SFB
Government grants refugees
Social resource committee
City area committees
Homelessness (75%)
Other
FINANCING
-4
0
-14
-42
-51
0
Taxes and general contributions
Interest and dividends
Distributed municipal contributions
Personnel expenses/pensions
Repaid AFA-premiums
Disposable allocations
Social investments
Premises and plants
Port facilities
Companies and local federations
Other
-59
37
-19
97
93
-8
8
-5
135
0
Financing
279
Total financing
279
Total
563
Hom elessness
75%
Individual &
fam ily
care
Healthcare &
social Culture
care & leisure
Com .
Service
& other
Total
Activity acc. to internal budget
City district com m ittees
CD North
CD East
CD South
CD West
CD Inner City
-16
-19
-14
-1
0
-3
0
-2
0
1
-6
-25
-13
-6
-11
1
1
-2
3
0
1
4
7
7
3
-24
-39
-25
1
-7
Total
-51
-6
-63
3
22
-93
-22
-2
10
-14
Social resource com m ittee
66
Profit and Loss Accounts
Amounts in millions of SEK
THE CITY OF MALMÖ
CONSOLIDATED
ACCOUNTS
2015
2014
7 643
6 985
-21 613
-20 603
-1 279
-1 250
-15 249
-14 868
Note
1
2
3
2015
4 255
-19 099
-874
-15 718
2014
3 703
-18 345
-790
-15 432
Tax earnings
General government grants and equalis
Financial earnings
4
5
6
11 521
4 722
160
10 733
4 463
200
11 521
4 722
66
10 733
4 463
191
Financial costs
Profit before extraordinary items
7
-122
563
-113
-149
-246
814
-374
145
0
0
0
0
0
0
563
0
0
-149
0
-63
751
0
-77
68
Revenue from the operations
Costs of the operations
Depreciations
Net costs of the operations
Extraordinary income
Extraordinary costs
Tax/deferred tax
NET PROFIT
Intra-group financial conditions can b e seen in note 23
Balance Sheet
Amounts in millions of SEK
ASSETS
THE CITY OF MALMÖ
CONSOLIDATED
ACCOUNTS
2015
2014
Not
2015
2014
8
1
1
18 706
17 720
33 753
31 007
- Land, buildings and plant and machinery
9
17 823
16 944
31 134
28 568
- Machinery and equipment
10
883
776
2 619
2 439
Financial assets
11
8 555
6 949
454
801
27 262
24 670
34 237
31 832
52
0
52
0
52
0
52
0
FIXED ASSETS
Intangible fixed assets
Tangible fixed assets
Total fixed assets
30
24
CONTRIBUTIONS TO INFRASTRUCTURE
Contributions to infrastructure
12
Total contributions to infrastructure
CURRENT ASSETS
Stocks, etc.
13
74
79
82
87
Receivables
14
2 040
1 658
1 826
1 832
0
0
0
0
Cash and bank balances
1 220
1 154
1 409
1 290
Total current assets
3 334
2 891
3 317
3 209
30 648
27 561
37 606
35 041
Short-term investments
TOTAL ASSETS
67
Amounts in millions of SEK
THE CITY OF MALMÖ
CONSOLIDATED
ACCOUNTS
EQUITY, PROVISIONS AND LIABILITIES
EQUITY
Profit/loss for the year
Profit equalization reserve
Other equity*
563
-149
751
68
1 091
906
1 091
906
11 721
12 065
15 377
15 319
Total equity
15
13 375
12 822
17 219
16 293
PROVISIONS
Provisions for pensions and similar obligations
Other provisions
16
17
1 697
155
1 584
94
1 817
325
1 699
235
Deferred tax liability
Total provisions
0
0
470
426
1 852
1 678
2 612
2 360
11 380
LIABILITIES
Long-term liabilities
18
11 026
8 894
12 514
Current liabilities
19
4 395
4 167
5 261
5 008
Total liabilities
15 421
13 061
17 775
16 388
TOTAL EQUITY, PROVISIONS AND LIABILITIES
30 648
27 561
37 606
35 041
PLEDGES AND CONTINGENT LIABILITIES
Pledges and equivalent collateral
20
3 214
3 217
786
806
Contingent liabilities
Pension obligations not accounted as liabilities or
provisions
Other contingent liabilities
21
5 897
6 122
5 897
6 122
22
6
6
70
70
Intra-group financial conditions can be seen in note 23
* In 2015, other equity w as corrected by SEK 10 m as per RKR 14 change of accounting principles, change in
estimates and assessments as w ell as correction of errors concerning contributions to infrastructure w hich
w ere decided in 2011.
68
Cash flow statement
Amounts in millions of SEK
THE CITY OF MALMÖ
Note
OPERATING ACTIVITIES
Profit/loss for the year
2015
2014
CONSOLIDATED
ACCOUNTS
2015
2014
563
-149
751
68
8, 9, 10
874
790
1 279
1 250
Adjustment for the resolution of investment contributions
Adjustment for the resolution of contributions to
12
infrastructure
Adjustment for capital gains/losses
9, 10, 11
-20
-12
-20
-12
3
0
3
0
Adjustment for depreciations and w rite-dow ns
6
-23
4
-63
Adjustment for land readjustment profits
13
-304
-233
-304
-233
Adjustment for pension provision
16
113
69
118
76
Adjustment for other provisions
17
-4
80
16
87
Adjustment for appropriations and deferred tax
0
0
23
0
Adjustment for other items affecting liquidity
6
-4
221
20
1 237
518
2 091
1 193
Net from operating activities
INVESTING ACTIVITIES
Investment in intangible fixed assets
8
Investment contributions received
Sales of intangible fixed assets
0
-1
-9
-10
349
151
328
144
0
0
0
0
Investment in tangible fixed assets
9, 10
-1 959
-2 293
-3 895
-3 439
Sales of tangible fixed assets
9, 10
75
60
136
71
Investment in financial assets
11
-2
-7
-2
-467
Sales of financial assets
Net from investing activities
FINANCING ACTIVITY
Increase in long-term liabilities
Decrease in long-term liabilities
0
0
2
1 543
-1 537
-2 090
-3 440
-2 158
1 758
2 110
7 650
2 795
0
0
-6 772
-2 092
Increase in long-term receivables
11
-1 922
-1 211
-34
-34
Decrease in long-term receivables
11
317
140
18
13
0
0
0
0
153
1 039
862
682
-4
New issues
Net from financing activities
CAPITAL TIED UP
Increase/decrease in stocks and w arehouse
13
-1
-3
-2
Land readjustment
13
0
1
0
1
Sale of development land
13
369
269
369
269
Increase/decrease in short-term receivables
14
-383
-21
-9
-129
Increase/decrease in short-term liabilities
19
228
782
250
531
213
1 028
608
668
66
495
121
385
Net from capital tied up
CASH FLOW FOR THE PERIOD
Cash and cash equivalents at beginning of the year
1 154
659
1 288
905
Cash and cash equivalents at the end of the period
1 220
1 154
1 409
1 290
Interest-bearing net assets/liabilities at the
beginning of the year
-2 160
-1 143
-8 627
-8 379
Increase/decrease in interest-bearing receivables
1 691
667
-343
1 064
66
495
121
385
Increase/decrease in interest-bearing liabilities
-1 845
-2 179
-769
-1 731
Interest-bearing net assets/liabilities at the end
of the year
-2 248
-2 160
-9 618
-8 661
Increase/decrease in cash and cash equivalents
69
Accounting principles
City of Malmö
Legislation and standard establishment
The annual report and statement of accounts are drawn up in accordance with the act on
municipal accounting and the recommendation from the Council for the Municipal
Accounts (RKR) unless otherwise stated. In addition, the regulations and establishment of
standards that apply to other sectors of the community, and that are included in the concept
of generally accepted accounting practices, are observed.This means, among other things,
that:
• Income is accounted to the extent that it is likely that the financial assets will be
credited to the municipality and that the income can be calculated in a reliable
manner.
• Receivables have been included at the amounts in which they are expected to be
received.
• Assets and liabilities have been included at acquisition value unless otherwise stated.
• Accruals of income and outgoings have been made in accordance with generally
accepted accounting principles.
In view of regulations coming into effect regarding transition support and pension to elected
representatives, OPF-KL, which is designed in such a way that it can be applied to elected
representatives who take up their mandate for the first time after the election 2014 or after,
RKR has revised the recommendations 2 Special collective agreement occupational pension, fixed term
pension and transition support, etc. and 17 assessment of information regarding pension obligations om
pensionsförpliktelser so that OPF-KL is also covered by the recommendations.
Malmö city during 2015 received SEK 381 m in government grants regarding temporary
support to municipalities and county councils in order to manage the existing refugee
situation. According to a statement by RKR, the government grants can be accounted for in
two different ways. Malmö city has elected to distribute the income evenly from December
2015 until and including December 2016, which means that a thirteenth of the income was
recorded as revenue in the income statement for 2015. The remaining amount is accounted
for as revenue 2016.
In 2014, RKR updated its recommendation 11.4 Tangible fixed assets. The recommendation
now includes an explicit requirement for applying component depreciation. This
requirement is effective as of the accounting year 2014. Malmö city uses component
depreciation for investments which were capitalised during 2015 and where there are
differences in the depletion of a fixed asset’s significant components. During 2015, existing
tangible fixed assets have been converted to component depreciation. The corrections will
be accounted not before 01.01.2016 and thus do not affect the accounts for 2015. As of
2016, Malmö city will use component depreciation all out and thus also activate parts of the
costs for long-term planned maintenance, which according to the previous depreciation
model were written off directly. Furthermore, the same accounting principles were used in
2015 as in 2014.
70
Adjustment of accounting data from previous years
In accordance with RKR 6.2 Accounting of grants for infrastructure investments such a grant shall be
accounted the same year it is approved. If the grant is accounted for in the balance sheet,
dissolution shall begin in the same year the approval is made. In 2011, the city council
approved a grant for infrastructure regarding Malmöringen. I the accounts for 2015, a
correction has been made according to RKR 14 Change of accounting principles, changes in estimates
and assessment as well as corrections of errors so that a total of SEK 65 m was posted in the
balance sheet as Grants for infrastructure. According to the decision, the grant is to be
dissolved over 25 years. A correction was made in 2015 by SEK 10 m directly against equity,
which corresponds to dissolution of the grant for the years 2011 to 2014. Dissolution
regarding 2015 has been expensed in the income statement.
No conversion of comparative figures for previous years has been made as the correction
does not constitute a significant amount.
Comparison-distorting items
Comparison-distorting items are accounted separately when these occur in notes to the
respective item in the profit & loss accounts and/or in the financing analysis. Items which
rarely occur and which amount to significant sums are regarded as comparison-distorting.
Accounting model
Included in the accounting model are:
• Profit & loss accounts that show the period’s income and costs as well as change to
equity capital.
• Balance sheet that shows the financial position on the day the books are closed.
• Cash flow analysis that shows how the activity has been financed.
• Operating accounts that, per area of responsibility, report outcome against budget.
• Investment accounting that, per area of responsibility, reports the year’s investment
costs and investment contributions.
The activity’s income and costs
Income and costs are accrued to the year when the goods are delivered, service carried out
of event occurs.
Wages and payment to personnel are accrued. Worked overtime and compensation for being
on duty and standby, not taken out, are entered as a liability. Earned, but not taken, holidays
are entered as a liability, as is earned holiday pay and paid leave, respectively, for teachers and
other similarly employed. The holiday pay liability is calculated individually for all personnel
categories. Social charges are calculated on the basis of the coming year’s level.
In the operating and investment accounts on pages 98-99, internal items are included.
Financial costs and income as well as depreciation are included at committee level in the
costs and income columns, respectively. In the profit & loss and balance sheet accounts on
page 66, internal items have been eliminated.
71
Leasing agreements
All leasing agreements concluded in 2011 and earlier are classified as operational.
For leasing agreements concluded after 2011, regulations in accordance with RKR 13.2
Accounting of rent/leasing agreements are applied.
The City of Malmö has no agreements, however, which meet the criteria for financial leasing
agreements.
Agreements regarding vehicle hire concluded with Vagnparken i Skåne AB do not fully
satisfy the requirements of financial leasing. The principal rule is that these agreements are
regarded as pure hire agreements or as operational leasing.
Depreciation method
Depreciation of tangible fixed assets is made for the calculated period of use with linear
depreciation based on the acquisition value excluding any residual value. For assets in the
form of land, works of art and ongoing work, no depreciation is made.
Depreciation is calculated and entered from and including the month after acquisition or
when the asset is brought into use.
Depreciation times
For tangible fixed assets capitalised before 2015, the following depreciation times are
primarily employed:
Activity properties
Properties for business activity
Public properties (streets, roads and parks)
Machinery and fixtures & fittings
20, 33 and 50 years
20, 33 and 50 years
10, 20 and 33 years
3, 5 and 10 years
For buildings and technical installations activated during 2015, component depreciation and
the following depreciation times have been applied:
Buildings are divided into nine components
Public properties (streets, roads and parks)
are divided into two to three components
Port facilities are divided into two to three
components
15, 20, 30, 40, 75 and 100 years
5, 8, 10, 15, 20, 30, 40, 60, 75 and 120 years
5, 10, 20, 30, 40 and 75 years
Tax income
The provisional final settlement for tax income is based on the Swedish Association of Local
Authorities and Regions’ December forecast in accordance with RKR 4.2 Accounting of tax
income.
Interest
Ongoing investment and development projects with a term exceeding six months are
charged loan costs in accordance with “the alternative method” in RKR 15.1 Accounting of loan
72
costs. Activated loan costs are calculated in accordance with the municipality group’s
borrowing costs for cheque credits. The average interest rate during 2015 amounted to 0.27
% (0.79 %). In total during the year, interest of SEK 7 m (SEK 24) has been capitalised. The
loan costs activated during 2015 are less than the total external loan costs.
Extraordinary items
No income or costs have been accounted as extraordinary during 2015 or 2014.
Fixed assets
Fixed assets intended for permanent use or possession with a lifespan of at least three years,
and an acquisition cost that amounts to at least a basic amount are entered as a fixed asset.
This applies to tangible and intangible assets and to financial leasing agreements.
Fixed assets are included in the balance sheet at acquisition value with a deduction for
depreciation.
Investment contributions and street cost payments are, from and including 2010, included as
pre-paid income and are accounted among long-term liabilities. The income is accrued over
the fixed asset’s useful lifespan in order to match the depreciation. Investment contributions
relating to investments made before the 2010 accounting year have reduced the fixed assets’
acquisition value.
Grants for infrastructure
According to the act on municipal accounting, grants for public infrastructure can be
accounted for in the balance sheet provided that they fall within the scope of the Act on
certain Municipal Powers (2009:47). The grant can be dissolved over no more than 25 years.
In 2011, the city council approved grants for infrastructure regarding Malmöringen. Ahead
of the start of Pågatåg train operations, a station is to be constructed in Rosengård.
Investment is estimated at SEK 65 m and dissolution shall take place over 25 years.
Current assets
Current assets are included at their acquisition value or their actual value, if that is lower.
Invoice receivables that are more than six months old are regarded as uncertain. If no
instalment plan is drawn up that is kept to, the receivables are written down in the accounts.
Pension obligations
Pensions obligations shall, according to the municipal accounting act, be accounted in
accordance with the so-called mixed model. This means that:
•
•
•
Pension benefits earned before 1998 are accounted as contingent liabilities.
Guarantee and fixed term pensions as well as pension benefits earned from and
including 1998, are accounted in the balance sheet as allocation for pensions and
similar obligations.
The greater part of pension benefits earned from and including 2000 may be
invested individually by the personnel. These are accounted as short-term liabilities
until disbursement is made at the end of March the year after being earned.
73
Obligations for pension undertakings for those employed in the municipality are calculated
in accordance with RIPS 07. The right to fixed term pension and transition support (in acc.
With OPF-KL) for elected representatives is accounted as a contingent liability since it is not
considered likely that it will lead to disbursements. When it is considered probable that
payments will be made, the items are instead accounted as provisions.
Other allocations
Allocations can only be made for legal obligations. Allocations are understood to mean a
liability which is unknown with regard to the due-by date or amount.
Liabilities are
According to RKR 20 Accounting of financial assets and financial liabilities, a liability shall be
classified as short-term when it falls due within twelve months calculated from the balance
sheet date or when it is expected to be paid within the normal course of the municipality’s
activity cycle. All other liabilities shall be classified as long-term.
That part of the City of Malmö’s long-term loans that falls due for payment during the
forthcoming year is calculated as being refinanced in its entirety and is 100 % covered by
underlying liquidity reserves and may therefore continue to be classified as long-term in the
accounts.
The forthcoming year’s amortisations are accounted as short-term liabilities.
Within the city, financial activity is conducted by the Internal Bank at the city office’s finance
department. All borrowing from and lending to the city’s companies takes place through this
entity. All companies are offered borrowing and placement under market conditions. No
capital injection, amortising-free loans or loss contributions have been made to these
companies.
Hedge accounting
Finance activities within the municipality group are based on the city council’s financial
regulations and the city executive board’s Finance Policy. The city utilises financial derivative
instruments in order to hedge positions regarding exchange rate and interest rate
fluctuations. RKR 21 Accounting of derivatives and hedge accounting are applied as of the 2013
accounting year. Hedge accounting means that outstanding financial derivatives are not
assessed to lower of cost or market. Purchases or sales of financial assets or liabilities are
accounted to the liquidity day. Financial current assets and short-term liabilities are assessed
at the acquisition value. Any issue expenditures and similar transaction expenditures are
accrued over the term of the underlying transaction.
Compiled accounts
Definition and scope
According to the municipal accounting act, the annual accounts shall also include compiled
accounts. The term compiled accounts is most closely synonymous with group accounts.
74
The aim of the compiled accounts is to provide an overall picture of the municipality’s and
the municipal businesses’ activity and financial position.
In the compiled accounts there shall, according to the annual accounts act’s definition of
significant influence, be companies included in which the City of Malmö has, directly or
indirectly, at least 20% of the voting rights.
According to RKR 8.2 Compiled accounts, companies that conduct an activity of insignificant
scope may be exempted. Insignificant scope is defined as companies where the
municipality’s share of turnover and assets is less than 2 % of the tax income and general
state contributions. The combined municipal share of the turnover/assets in the businesses
that are exempted may not however, exceed 5 % of tax income and general state
contributions. This means that MINC i Sverige AB, Medeon AB, Kommunassurans Syd
Försäkrings AB and Malmö Stadshus AB are not included in the compiled accounts despite
the City of Malmö having a holding in the companies in excess of 20 %.
In addition to the above, the following legal entities are also not included in the City of
Malmö’s compiled accounts:
•
•
•
•
Foundations, due to their activity being of insignificant scope according to the above
definition.
Donations.
Dormant companies (AB Folkets Park, Kungsparken AB, Malmö Frihamn AB and
Fastighets AB Härfågeln).
Companies in liquidation (Malmö Neptunihusen AB).
The information in the compiled accounts is in some cases based on annual accounts not
adopted. Comparative figures for 2014 are based on adopted annual accounts and, where
applicable, have been adjusted.
The companies’ annual accounts are prepared according to the annual accounts act and the
Swedish Accounting Standards Board’s general recommendations BFNAR 2012:1 Annual
accounts and group accounts (K3). In case the accounting principles differ between the
municipality and companies, the municipality’s accounting principles shall have priority
when preparing the compiled accounts. The Association of Local Authorities abides by the
same benchmarks as the municipality.
Method for compiled accounting
Proportional consolidation is used which means that the accounts include the companies’
balance sheet and income statement to as great an amount as corresponds to the
municipality’s participating interest.
Associated companies that are included in SYSAV’s group accounts are accounted in
accordance with the capital share method. This means that the group’s share of the
associated companies’ net assets is accounted on a line in the balance sheet. In other cases
where there are sub-groups, the sub-groups’ annual accounts have been consolidated in full,
75
as the companies in these sub-groups consist of wholly-owned companies which have not
been subject to internal acquisitions
For other subsidiaries, the City of Malmö’s (the parent company’s) entered value of shares in
the subsidiaries, is eliminated against the subsidiary’s equity capital in accordance with the
acquisition method. Receivables and liabilities between companies in the compiled accounts
have been eliminated in proportion to the size of the shareholding.
During 2014, the group Malmö Stadshus AB was founded in which Malmö Stadshus AB is
owned to 100% by Malmö city. Malmö Stadshus AB in turn owns all shares in Malmö
Stadsteater AB, Malmö Live Konserthus AB, Vagnparken i Skåne AB, Minc i Sverige AB,
Malmö kommuns parkeringsaktiebolag and MKB Fastighets AB. Even if the companies
together make up a group, the companies in the compiled accounting have each been
consolidated separately. Minc i Sverige AB is not included in the compiled accounting as the
company falls below the threshold values, see above. This means that no change has taken
place with regard to the method for consolidation or scope of companies included.
Untaxed reserves
The subsidiaries’ untaxed reserves have been regarded in the compiled accounts as equity
capital on the one hand (78%), and as latent tax on the other (22%). In the compiled profit
& loss accounts the subsidiary’s final accounts allocations, excluding latent tax, are
transferred back and are included in the item Change to equity capital.
Fixed assets
According to the accounting principles that apply to group companies, the fixed assets’
acquisition value shall be reduced by any investment contribution before calculation of
depreciation. This accounting principle differs from what applies to the municipalities where
the investment contributions are included as pre-paid income and accounted among
longterm liabilities. If the group companies’ accounting principles differ from those of the
municipality, they shall – according to RKR 8.2 Compiled accounts, be adjusted prior to
consolidation.
Depreciation
All companies and associations of local authorities included in the compiled accounts and
which own fixed assets with identifiable components with different lengths of useful life use
component depreciation.
As the respective companies do their own classification of components, there is no one
single regulatory framework. Buildings are broken down into components with a
depreciation period of between 5 – 100 years. For machinery and equipment, component
depreciation is not used. The depreciation period is 3, 5 or 10 years.
76
Notes
Note 1 – The activity’s income
Amounts in millions of SEK
THE CITY OF MALMÖ
COMPILED ACCOUNTS
Sales proceeds
2015
49
2014
51
2015
395
2014
319
Taxes and fees
816
876
1 496
1 566
Rents and leases
897
818
2 681
2 416
1 702
1 244
1 876
1 504
Operations and contracts
317
292
317
293
Land readjustments proceeds
369
269
369
269
23
56
26
101
Contributions
Capital gains
Other revenue
Total revenue for the operations
82
97
483
517
4 255
3 703
7 643
6 985
97
0
0
100
97
0
0
100
Item s affecting com parability
Repayment from AFA
Compensation for damages related to cloudburst*
Note 2 – The activity’s costs
Amounts in millions of SEK
Personnel costs excl. pension costs
Pension costs
THE CITY OF MALMÖ
2015
9 993
2014
9 397
COMPILED ACCOUNTS
2015
10 620
2014
9 953
901
843
943
890
Contributions paid
1 622
1 702
1 622
1 702
Purchase of main activity
2 845
2 670
2 891
2 714
610
549
708
629
3 033
3 114
4 733
4 644
Book values land readjustment areas sold
65
37
65
37
Capital losses and disposals
30
33
31
34
19 099
18 345
21 613
20 603
0
96
0
96
0
92
0
92
Rent for premises and land
Material, services and other operating expenses
Total operating expenses
Item s affecting com parability
Costs for damages related to cloudburst
Compensation to Kommunassurans Syd
Försäkrings AB
Financial lease contracts exceeding 3 years
Amounts in millions of SEK
THE CITY OF MALMÖ
COMPILED ACCOUNTS
2015
2014
Land, buildings and plant and m achinery
Of w hich maturing w ithin 1 year
0
0
40
44
Of w hich maturing w ithin 1 - 5 years
0
0
165
176
Of w hich maturing later than 5 years
0
0
129
180
Malmö city has no leasing agreements classified as finnancial.
77
2015
2014
Non-terminable operational lease contracts exceeding 3 years
Amounts in millions of SEK
THE CITY OF MALMÖ
2015
COMPILED ACCOUNTS
2014
2015
2014
Machinery and equipm ent
The total amount of future minimum lease fees is:
With time of maturity w ithin 1 year
With time of maturity later than 1 year but w ithin 5
With time of maturity later than 5 years
8
6
26
15
17
18
57
38
3
6
6
19
287
658
455
265
759
788
*
*
*
*
*
*
Rental agreem ents
The total amount of future rental agreements is:
With time of maturity w ithin 1 year
With time of maturity later than 1 year but w ithin 5
With time of maturity later than 5 years
* Information missing for the compiled accounts.
Note 3 – Depreciation and write-downs
Amounts in millions of SEK
THE CITY OF MALMÖ
COMPILED ACCOUNTS
2015
0
2014
0
2015
4
2014
4
Land, buildings and plant and machinery
716
637
973
931
Machinery and equipment
158
153
302
315
Total depreciations and w rite-dow ns
874
790
1 279
1 250
Intangible fixed assets
The amounts related to Malmö city include write-downs of SEK 0 m (SEK 0 m). The writedowns in the consolidated accounts amount to SEK 0 m (SEK 31 m). The amount in the
consolidated accounts also includes reversal of previous write-downs by SEK 57 m (SEK 48
m).
In the compiled accounts, there is a discrepancy in the depreciation between the profit &
loss accounts and balance sheet. The discrepancy is to be found with VA Syd.
Note 4 – Tax income
Amounts in millions of SEK
Preliminary tax earnings
THE CITY OF MALMÖ
2015
11 531
COMPILED ACCOUNTS
2014
10 764
2015
11 531
2014
10 764
Forecast final settlement for 2014
0
2
0
2
Correction of forecast final settlement for 2013
0
-33
0
-33
Correction of forecast final settlement for 2014
-24
0
-24
0
Forecast final settlement for 2015
Total tax earnings
14
0
14
0
11 521
10 733
11 521
10 733
78
Note 5 – General state contributions and equalisation
Amounts in millions of SEK
THE CITY OF MALMÖ
Income equalisation
Cost equalisation
Structural contribution
Adjustment contribution/fee
COMPILED ACCOUNTS
2015
3 946
2014
3 778
2015
3 946
2014
3 778
439
311
439
311
43
43
43
43
-12
72
-12
72
Introduction grant
0
57
0
57
LSS-equalisation
-161
-205
-161
-205
Comp. for increased empl. Contribution youth
24
0
24
0
Temporary state contributions for refugees
29
0
29
0
Property fee
Preliminary
380
380
380
380
Forecast final settlement for 2015
35
0
35
0
Correction of forecast final settlement for 2014
-1
0
-1
0
Correction of forecast final settlement for 2013
0
1
0
1
Forecast final settlement for 2014
0
26
0
26
4 722
4 463
4 722
4 463
Total general state contributions and
equalisation
Note 6 – Financial income
Amounts in millions of SEK
THE CITY OF MALMÖ
COMPILED ACCOUNTS
2015
1
2014
8
2015
7
2014
178
106
130
5
10
49
53
1
0
Interest contribution
0
0
0
0
Other interest and financial income
4
9
53
3
160
200
66
191
Interest liquid funds
Interest on loans
Dividend shares in group companies
Total financial incom e
Of Malmö city's interest revenue on loans, SEK 106 m, SEK 105 m (SEK 129 m) are related
to group companies as follows:
Amounts in millions of SEK
THE CITY OF MALMÖ
2015
66
2014
83
Vagnparken i Skåne AB, VISAB
3
4
Malmö Kommuns Parkerings AB
14
16
VA Syd
22
26
MKB Fastighets AB
79
Note 7 – Financial costs
Amounts in millions of SEK
THE CITY OF MALMÖ
COMPILED ACCOUNTS
2015
91
2014
105
2015
223
2014
358
Capitalised borrow ing costs
-7
-24
-22
-38
Interest pension liability
29
22
30
23
9
10
15
31
122
113
246
374
Interest long-term borrow ing
Other financial expenses
Total financial expenses
Note 8 – Intangible fixed assets
Amounts in millions of SEK
THE CITY OF MALMÖ
COMPILED ACCOUNTS
2015
1
2014
0
2015
24
Sales and disposals
0
0
0
0
Investments
0
1
8
10
Depreciation and w rite-dow ns
0
0
-4
-4
Reclassification of assets
0
0
2
6
Reported value at the end of the year
1
1
30
24
Reported value at the beginning of the year
2014
12
Note 9 – Land, buildings and technical installations
Amounts in millions of SEK
THE CITY OF MALMÖ
COMPILED ACCOUNTS
Land reserve and development land
2015
1 441
2014
1 469
2015
1 454
2014
1 483
Properties for the operations
7 272
5 763
19 226
16 431
Properties for the business activities
2 555
2 389
2 581
2 408
Public properties
4 055
3 372
4 055
3 372
Properties for other activities
1 178
1 181
1 178
1 181
20
18
20
18
1 302
2 752
2 620
3 675
17 823
16 944
31 134
28 568
16 944
15 591
28 488
26 575
-71
-30
-119
-32
1 754
2 125
3 497
3 117
-715
-637
-1 029
-979
0
0
57
48
-89
-105
240
-161
17 823
16 944
31 134
28 568
Other properties
Investment projects underw ay
Total land, buildings and plant and
m achinery
Reported value at the beginning of the year
Sales and disposals
Investments
Depreciation and w rite-dow ns
Reversed w rite-dow ns
Reclassification of assets
Reported value at the end of the year
The year’s sales relate to entered value of the assets. The sales have, in addition to those in
the City of Malmö’s accounts, provided sales profits of SEK 24 m (SEK 56 m). In addition,
SEK 20 m (SEK 26 m) were scrapped, giving rise to a combined net profit of SEK 4 m
(SEK 3 m).
Reclassifications in the City of Malmö’s accounts concern the following items:
80
SEK -75 m
SEK -71 m
SEK 55 m
Transfer from development activity (current asset).
Reclassification between machinery and equipment and land, buildings and
technical installations in connection with activation of ongoing investment
projects.
Concerns investment contributions re-classified as long-term liabilities.
Reclassifications in the compiled accounts mainly concern one major item:
SEK 386 m Reclassification between long-term receivables and machiner and equipment
concerning MKB’s acquisition of the property Sjömannen.
There is a further discrepancy found in the compiled accounts regarding depreciation
between the profit & loss accounts and the balance sheet. The discrepancy is to be found
with VA Syd
In the compiled accounts, the amounts concerning the closing balance 2014 do not match
the opening balance 2015 due to changes in ownership holdings in VA Syd.
Note 10 – Machinery and equipment
Amounts in millions of SEK
THE CITY OF MALMÖ
COMPILED ACCOUNTS
2015
81
2014
67
2015
1 228
2014
1 247
Equipment
Permanent equipment, service facilities, etc. in
buildings
Cars and other means of transport
Investment in machinery and equipment
underw ay
Improvement expenses for properties not ow ned
Art
Other machinery and equipment
322
305
527
445
85
88
155
131
3
0
189
168
4
7
121
130
28
35
325
11
27
271
28
40
331
11
32
275
Total m achinery and equipm ent
883
776
2 619
2 439
Reported value at the beginning of the year
776
708
2 430
2 361
Sales and disposals
-10
-7
-13
-17
Investments
205
168
502
329
-159
-153
-370
-336
Machinery
Depreciation and w rite-dow ns
Reversed w rite-dow ns
Reclassification of assets
Reported value at the end of the year
0
0
0
0
71
60
70
102
883
776
2 619
2 439
Sales and disposals for the year SEK 10 m (SEK 7 m) relate to the book value for discarded
assets.
Reclassifications in the City of Malmö’s accounts relate to the following items:
SEK 71 m
Reclassification between machinery and equipment and land, buildings and
technical installations in connection with activation of ongoing investment
projects.
81
There is a further discrepancy found in the compiled accounts regarding depreciation
between the profit & loss accounts and the balance sheet. The discrepancy is to be found
with VA Syd.
In the compiled accounts, the amounts concerning the closing balance 2014 do not match
the opening balance 2015 due to changes in ownership holdings in VA Syd.
Note 11 – Financial fixed assets
Amounts in millions of SEK
THE CITY OF MALMÖ
2015
444
Shares and participations
Housing rights
COMPILED ACCOUNTS
2014
444
2015
44
2014
43
11
10
11
10
Long-term receivables
8 100
6 495
399
748
Total financial fixed assets
8 555
6 949
454
801
Shares and participations
Amounts in millions of SEK
THE CITY OF MALMÖ
COMPILED ACCOUNTS
2015
444
2014
437
2015
43
2014
46
Sales
0
-269
0
-270
Investments
0
276
1
267
444
444
44
43
Reported value at the beginning of the year
Reported value at the end of the year
Specifications regarding shares, Malm ö City
Participating
interest
Nom inal
value
2015
2014
270
Corp. ID. no.
Num ber
Malmö Stadshus AB
556453-9608
514 000
100
51
270
Malmö Frihamns AB
556013-9072
800
100
1
1
1
271
271
Wholly-ow ned com panies
Total w holly-ow ned com panies
Partly-ow ned com panies
Sydskånes Avfallsaktiebolag, SYSAV
556187-0410
15 174
46
15
3
3
Sydvatten AB
556100-9837 1 506 587
34
151
142
142
Copenhagen Malmö Port AB
556027-4077
989 100
28
27
13
13
Malmö Opera och Musikteater AB
556256-2065
1 999
10
2
2
2
Kommunassurans Syd
Försäkrings AB
556406-0294
12 588
20
13
13
13
Total partly-ow ned com panies
173
173
TOTAL THE CITY OF MALMÖ
444
444
82
Specifications regarding shares, Malm ö City
Corp. ID. no.
Num ber
Participating
interest
%
Malmö Stadshus AB
556453-9608
514 000
100
51
0
0
Malmö Opera och Musikteater AB
556256-2065
1 999
10
2
2
2
Kommunassurans Syd
Försäkrings AB
556406-0294
12 588
20
13
13
13
Malmö Frihamns AB
556013-9072
800
100
1
1
1
Nom inal
value
2015
2014
Com panies ow ned by Malm ö City
Other companies
Com panies ow ned by Malm ö City
1
2
17
18
0
Com panies ow ned by Sydskånes Avfallsaktiebolag SYSAV
Sysav Utveckling AB
556289-5978
1 000
100
0
0
Sysav Industri AB
556474-8803
1 000
100
0
0
0
-PULS Planerad Underhållsservice AB
556379-1259
15 000
50
1
11
8
-KS Recycling AB
556353-4741
3 500
50
0
1
1
-ÅGAB Syd AB
556616-6848
2 000
40
0
4
4
-Carl F AB
556039-0402
2 500
25
0
11
12
Total com panies ow ned by SYSAV
27
25
TOTAL COMPILED ACCOUNTS
44
43
Housing rights
Amounts in millions of SEK
Reported value at the beginning of the year
THE CITY OF MALMÖ
2015
10
2014
12
COMPILED ACCOUNTS
2015
10
2014
12
Investments
1
0
1
0
Reclassifications of assets
0
-2
0
-2
11
10
11
10
Reported value at the end of the year
83
Long-term receivables
Amounts in millions of SEK
THE CITY OF MALMÖ
COMPILED ACCOUNTS
2015
6 625
2014
4 999
2015
0
2014
0
Vagnparken i Skåne AB, VISAB
148
129
0
0
Malmö Kommuns Parkering AB
550
556
0
0
VA Syd
968
912
302
257
Foundation Kockums Fritid
3
4
3
4
Economic/non-profit associations and found
7
8
7
8
20
20
20
20
Lund Municipality
0
0
38
40
Orcla
0
0
19
22
Husbyggnadsvaror HBV association
0
0
6
6
Sjömannen i Malmö AB
0
0
0
386
KS Recycling AB
0
0
8
9
Bonds
0
0
0
0
8 321
6 628
403
752
MKB Fastighets AB
Lantmännen Kvarnen 7 AB
Total
Coming year’s amortisation to be deducted
Total long-term receivables
-221
-133
-4
-4
8 100
6 495
399
748
The city council has approved the follow ing loan frames:
The municipal group’s total framew ork for external
borrow ing
15 000
15 000
Of which approved loan frame for municipal companies/ local federations:
MKB Fastighets AB
8 000
8 000
Vagnparken i Skåne AB, VISAB
200
200
Malmö Kommuns Parkerings AB
600
600
1 200
1 200
VA Syd
Reclassifications in the compiled accounts relate primarily to one major item:
SEK -386 m Reclassification between long-term receivables and machiner and equipment
concerning MKB’s acquisition of the property Sjömannen.
Note 12 – Grants for infrastructure
Amounts in millions of SEK
THE CITY OF MALMÖ
COMPILED ACCOUNTS
2015
0
2014
0
2015
0
2014
0
Reclassifications/correction
55
0
55
0
Resolution for the year
-3
0
-3
0
Reported value at the end of the year
52
0
52
0
Reported value at the beginning of the year
In 2011, the city council decided to co-finance Malmöringen by means of grants for
infrastructure. The grant is accounted for in the balance sheet and dissolved over 25 years.
84
Note 13 – Stocks etc.
Amounts in millions of SEK
THE CITY OF MALMÖ
COMPILED ACCOUNTS
2015
52
2014
51
2015
60
2014
59
Development properties
22
28
22
28
Total stocks, etc.
74
79
82
87
Stocks
Developm ent properties
Reported value at the beginning of the year
28
4
28
4
-81
-40
-81
-40
Development cost
0
-1
0
-1
Reclassifications
75
65
75
65
Reported value at the end of the year
22
28
22
28
Sales
The year’s sales relate to the entered value of assets. In addition, the sales in the City of
Malmö’s accounts have provided profits of SEK 304 m (SEK 233 m).
In total, SEK 75 m (SEK -65 m) have been reclassified from land, buildings and technical
installations (fixed assets).
Note 14 – Receivables
Amounts in millions of SEK
THE CITY OF MALMÖ
COMPILED ACCOUNTS
2015
257
2014
206
2015
303
2014
339
Receivables from the state
490
468
521
484
VAT receivable
162
158
182
170
Other short-term receivables
511
207
131
164
Prepaid expenses and accrued income
620
619
689
675
2 040
1 658
1 826
1 832
Accounts receivable
Total receivables
Note 15 – Equity capital
Amounts in millions of SEK
Other equity
Profit equalization reserve
Correction of errors / change of accounting
principles
Profit/loss for the year
Other receivables
Total equity
THE CITY OF MALMÖ
COMPILED ACCOUNTS
2015
11 731
2014
12 065
2015
15 203
2014
15 321
1 091
906
1 091
906
-10
0
-10
0
563
-149
751
68
0
0
184
-2
13 375
12 822
17 219
16 293
According to the guidelines for the profit equalization reserve adopted by the city council,
allocation can be made to SEK 185 m for 2015, see the balanced budget requirement
investigation which is also shown in the administration report. The allocation as above
requires that the city council approves this in connection with the annual accounts being
adopted.
85
The city council has, on two occasions (KS-KOM-2012-00751 and KS-KOM-2013-00082)
resolved, in all, to reserve SEK 100 m from other equity capital for so-called social
investments. During 2015, SEK 8 m (SEK 6 m) has been used for this purpose. This means
that a total of SEK 16 m has been allocated since 2013.
In 2015, SEK 10 m related to the preceding year’s dissolution of grants for infrastructure
measures were corrected directly against equity capital in acc. with RKR 14.1 Change in
accounting principles, change in estimates and assessment and correction of errors.
Other changes in the compiled accounts concern correction of recorded interest expenses
for derivative instruments in preceding years in MKB Fastighets AB, SEK 74 m. It is Malmö
city’s assessment that hedge accounting for derivative instruments should have been used,
which is why the interest expense should not have been recorded in the compiled accounts
during these years.
Changes in equity capital in the compiled accounts also concern dividends, shareholders’
contribution, SEK 121 m, and appropriations with group companies to the extent they do
not concern deferred tax.
86
Note 16 – Allocations for pensions and similar obligations
Amounts in millions of SEK
Pension provisions, excl. guarantee and
temporary pensions
Guarantee and temporary pension provisions
Total provisions for pensions and sim ilar
obligations
Specification - Pensions provisions
Special occupational/old age pension
THE CITY OF MALMÖ
COMPILED ACCOUNTS
2015
2014
2015
2014
1 663
1 570
1 731
1 637
34
14
86
62
1 697
1 584
1 817
1 699
27
11
*
*
Defined benefit/suppl pension
890
818
*
*
Old age pension
436
431
*
*
13
15
*
*
1 366
1 275
*
*
Surviving relatives' pension
Total pensions
Employer's contribution
331
309
*
*
1 697
1 584
*
*
1 584
1 515
1 699
1 623
138
100
145
107
87
75
91
78
24
17
26
21
0
0
0
0
2
4
2
4
Of which other items
25
4
26
4
Payments for the year
-47
-44
-50
-45
22
13
23
14
1 697
1 584
1 817
1 699
99%
99%
*
*
Total pension provisions
Pensions provisions
Input provision
New obligations for the year
Of which newly earned pension
Of which indexation of interest and basic
amount
Of which reduction of the discount rate
Of which surviving relatives' pension
Change in employer’s contribution
Total pension provisions
Updating rate
*Information missing for the COMPILED ACCOUNTS
The City of Malmö accounts as allocation for pensions and similar obligations, guarantee
and fixed-term pensions as well as pension benefits earned as of and including 1998. The
calculation base for pensions can be seen from the section Accounting principles, see page
69.
87
Note 17 – Other allocations
Amounts in millions of SEK
Local bank
Apprehended special fee, SoL/LSS
Damages from cloudburst
Malmö Neptunihusen AB
THE CITY OF MALMÖ
2015
7
2014
9
COMPILED ACCOUNTS
2015
7
2014
9
5
2
5
2
11
61
11
61
0
7
0
7
Contributions to infrastructure
65
0
65
0
Other provisions
67
15
237
156
155
94
325
235
Total provisions
Reported value at the beginning of the year
94
14
235
149
New provisions
124
91
155
100
Released/reversed provisions
-63
-11
-65
-14
Closing value provisions
155
94
325
235
The City of Malmö’s provision for local bank concern rental contracts for premises that are
not being used and which, according to a special decision by the city executive board, are
managed by Fastighetskontoret. Two contracts were again updated in 2015 following final
settlement in 2015. In December 2015, the local bank comprised four contracts, of which
one expires during 2016, two during 2017 and one during 2018. The weighted average of
remaining terms amounts to 2 years.
The National Board of Health and Welfare can apply to the administrative court for the
municipality to be ordered to pay a special charge if efforts acc. to SoL/LSS are not
implemented within a reasonable period of time. Malmö has a shortage of LSS housing units
and cannot currently satisfy the requirements. Assessment has been made on the basis of a
penalty probably being ordered in the individual case as well as the probable penalty amount.
For 2015, there is a total of SEK 5 m (SEK 3 m) allocated for an apprehended special charge
in respect of non-implemented decisions regarding benefits in accordance with SoL/LSS.
At the end of August 2014, Malmö was hit by a heavy cloudburst which resulted in major
damage to material and property. The allocated amount of SEK 11 m is for estimated costs
for damages not yet seen to.
In 2011, the city council approved a grant for infrastructure concerning Malmöringen. The
allocated amount, SEK 65 m, concerns estimated costs proceeding with the undertaking
decided on.
Other allocstions include provisions for risk expenses in connection with ongoing legal
actions, where they were declined in the first instance but where the cases have been
appealed.
88
Note 18 – Long.term liabilities
Amounts in millions of SEK
Borrow ings
Next year’s amortisation to be deducted
Prepaid revenues
Debt to the VA collective
Total long-term liabilities
THE CITY OF MALMÖ
2015
9 705
2014
7 947
COMPILED ACCOUNTS
2015
10 920
2014
10 113
0
0
0
-40
1 321
947
1 321
947
0
0
273
360
11 026
8 894
12 514
11 380
Of the City of Malmö’s long-term loans, SEK 1,862 m (SEK 2,148) relate to borrowing
through the municipality’s certificate programme and SEK 7,699 (SEK 5,658) concerns
bonds borrowing. The remaining part of the City of Malmö’s long-term loan of SEK 144 m
(SEK 141 m) relates to interest and amortisation-free loan from the municipal association
VA Syd, corresponding to the shareholding in Sydvatten AB. Of the City of Malmö’s
increase in loans taken up, SEK 1,758 m, SEK 1,693 m concerns increased further lending.
That part of the long-term loans that fall due for payment during the coming year are
expected to be refinanced in their entirety and comprise 100 % of underlying liquidity
reserves and/or credit promises.
For information regarding the city council’s adopted loan frameworks, reference is made to
Note 11 regarding financial fixed assets.
Amounts in millions of SEK
Investment contributions
Remaining number of years (w eighted average)
Non-capitalised investment contributions
Road expenses compensation
Remaining number of years (w eighted average)
Non-capitalised road expenses compensation
Total prepaid incom e
THE CITY OF MALMÖ
COMPILED ACCOUNTS
2015
413
2014
245
2015
413
2014
245
35
32
35
32
16
46
16
46
462
94
462
94
30
31
30
31
430
562
430
562
1 321
947
1 321
947
Investment contributions and street costs payments shall be accounted as long-term
liabilities and shall be accrued over the respective period of use of the assets. Before 2010,
investment contributions and street costs payments were previously accounted whereby they
reduced the entered value.
89
Note 19 – Short-term liabilities
Amounts in millions of SEK
THE CITY OF MALMÖ
Accounts payable
Staff taxes and contributions
Value added tax
Coming year’s amortisation
Other current liabilities
Accrued expenses and deferred income
COMPILED ACCOUNTS
2015
771
2014
761
2015
1 104
2014
1 044
161
144
174
156
27
16
36
24
0
0
24
40
889
949
276
495
2 547
2 297
3 647
3 249
Of which accrued wages
153
122
153
122
Of which holiday pay liabilities
579
554
635
610
24
22
30
27
201
178
217
202
Of which overtime liabilities
Of which employer’s contributions
Of which interest expenses
Of which individually invested pension funds
Of which tax earnings
21
39
67
424
473
439
108
22
108
22
352
0
352
0
73
110
73
110
4 395
4 167
5 261
5 008
Of which temporary state contributions for refugees
Of which land readjustment profits
Total current liabilities
18
452
Note 20 – Pledges and equivalent collateral
The City of Malmö – Guarantees
The City of Malmö’s guarantee commitments amounted to SEK 3,214 m (SEK 3,217 m) at
the end of the year, of which SEK 845 m (SEK 1,287 m) were utilised.
Amounts in millions of SEK
Approved
com m itm ents
Utilised
com m itm ents
2015
2014
2015
2014
2 100
2 100
0
500
436
436
228
228
1. Housing sector
MKB
Associations, companies
Government home loans, detached houses
Total housing sector
4
7
1
2
2 540
2 543
229
730
500
500
455
391
79
79
66
71
579
579
521
462
95
95
95
95
3 214
3 217
845
1 287
2. Others
Municipal companies
Non-profit associations, companies
Total others
3. Pension com m itm ents
TOTAL GUARANTEE COMMITMENTS
The drop in the guarantee commitment is mainly a result of MKB’s loans reaching maturity,
for which the municipality has issued a guarantee, having been refinanced by the City of
Malmö’s internal bank.
90
Guarantee commitments utilised for loans taken by municipal companies of SEK 455 m
(SEK 391 m) concern AB Sydvatten.
Compiled accounts – Guarantees
The group’s approved guarantee commitments amounted to SEK 786 m (SEK 628 m) at the
end of the year, of which SEK 562 m (SEK 586 m) were utilised.
Amounts in millions of SEK
Approved
com m itm ents
Utilised
com m itm ents
2015
2014
2015
2014
MKB
0
0
0
0
HSB
0
0
0
0
436
436
228
228
4
7
1
2
440
443
229
230
1. Housing sector
Associations, companies
Government home loans, detached houses
Total housing sector
2. Others
Municipal companies
0
0
0
0
Non-profit associations
79
78
66
71
Total others
79
78
66
71
3. Pension com m itm ents
27
27
27
27
4. Pledged assets and equivalent collateral
240
258
240
258
TOTAL GUARANTEE COMMITMENTS
786
806
562
586
91
Note 21 – Pension obligations not included among liabilities or
allocations
Amounts in millions of SEK
THE CITY OF MALMÖ
Pension obligations acc. to collective agreement
Pension obligations for temporary pension
Obligations severance pay*
Transition support*
2015
5 869
15
13
0
2014
6 093
29
0
0
Total
5 897
6 122
Num ber of tem porary appointm ents and
electedrepresentatives entitled to tem porary
pension
Civil servants
Elected representatives
0
0
21
17
4 659
4 834
Pension obligations acc. to collective agreem ent
Old age pension
Surviving relatives' pension
64
70
Total pensions
4 723
4 904
Employer's contribution
1 146
1 189
Total contingent liabilities pension obligations
acc.to collective agreem ent
5 869
6 093
6 093
6 410
60
-21
88
53
0
0
-6
-36
Change for the year in pension obligations acc.
tocollective agreem ent
Opening contingent liability
Change for the year in pension obligations acc. to
collective agreement
Of which indexation of interest and basic amount
Of which reduction of the discount rate
Of which updating and Bromsen
Of which others
Payments for the year
Change in employer’s contribution
Closing em ployer’s contribution pension
obligations acc. to collective agreem ent
-22
-38
-240
-235
-44
-61
5 869
6 093
*Break-up was not possible in previous year
Pension benefits earned before 1998 shall be accounted as contingent liabilities in
accordance with the municipal accounts act. Of the contingent liability’s amount, SEK 5,869
(SEK 6,093 m) relate to such pension obligations in accordance with collective agreements.
In addition, SEK 28 m (SEK 29 m) is accounted in respect of one employee with a fixedterm arrangement and 21 elected representatives with a right to fixed-term pension. All the
amounts include wage tax.
Calculation base for pensions is set out in the section, Accounting principles, see page 69.
92
Note 22 – Other contingent liabilities
City of Malmö and compiled accounts
Other contingent liabilities in addition to guarantees in the City of Malmö amount to SEK
6 m (SEK 6 m) and in the compiled accounts to SEK 70 m (SEK 70 m).
Amounts in millions of SEK
THE CITY OF MALMÖ
COMPILED ACCOUNTS
2015
6
2014
6
2015
6
2014
6
Recycling stations
0
0
64
61
Other
0
0
0
3
Total other contingent liabilities
6
6
70
70
Other rental agreements
Other rental agreements
The City of Malmö entered into a ten-year rental agreement in 2012, for the years 20132023, to rent premises for group housing. According to the municipality’s assessment, there
are serious shortcomings in the premises which make it impossible to run the activity
planned for the premises. The dispute is currently being processed by the district court. The
City of Malmö has chosen to account the above commitments as a contingent liability, as
there is no verdict in the case on the balance sheet date and thus also no adequate basis to
make a decision on the future use and service potential of the premises.
The present value of the leasing amounts is estimated to be SEK 6 m. As a basis for the
calculation an annual development of CPI 2% and an annual interest corresponding to 4%
are assumed. The information is based on the Riksbanken’s assumption of anticipated rate of
inflation and development of steering interest rate.
The nominal value of the leasing amounts is also estimated at SEK 6 m.
Put option agreement Orkanen 1
Malmö University is renting premises in the property Orkanen 1 in Malmö. The city council
in 2003 approved a put option agreement concerning the property. The property is owned
by a company, which in turn is owned by a foundation. The put option agreement sets out
that, under specific established circumstances, the municipality will be liable to acquire all
shares in the company if the seller so demands. According to the company’s annual accounts
as of 31-12-2014, the property is recorded value amounted to SEK 588 m and long-term
liabilities to SEK 545 m.
The City of Malmö has chosen not to account the put option as a contingent liability, but to
only inform of the significance of the agreement. The City of Malmö considers it highly
unlikely that the put option agreement will be triggered and that, in case the agreement is
triggered, the municipality will receive equivalent assets in form of the property.
Note 23 – Group-internal conditions
Between companies in the Malmö group, there are different types of financial involvement.
There are sales and purchases of products and services. The City of Malmö also has long93
term lending to certain companies in order to cover their capital requirements regarding
major investments. Several companies also obtain their operating liquidity via the City of
Malmö. Major financial balances, disbursed/received during 2014, unreduced from
ownership holdings, are shown below (rounded off to nearest SEK m).
Shareholders’ contributions, group contributions and dividends
Amounts in millions of SEK
Group com panies/Malm ö City
MKB Fastighets AB
Dividends
Provided
69
Received
The City of Malmö
69
Vagnparken i Skåne AB, VISAB
7
The City of Malmö
7
Copenhagen Malmö Port AB
18
The City of Malmö
18
Malmö kommuns parkering AB
3
The City of Malmö
3
Malmö Stadsteater AB
58
The City of Malmö
58
Malmö Live Konserthus AB
The City of Malmö
105
105
Income, expenses, receivables and liabilities
Amounts in millions of SEK
Group com panies/Malm ö City
The City of Malmö
Incom e and expenses
Incom e
255
MKB Fastighets AB
Expense
24
Sydskånes avfallsaktiebolag, SYSAV
Interest and guarantee
fees
Loans
Provided
7 769
Received
Incom e
106
Expense
6 625
66
1
Copenhagen Malmö Port AB
109
Malmö kommuns parkering AB
22
418
14
Vagnparken i Skåne AB, VISAB
17
105
3
Malmö Stadsteater AB
7
Malmö Live Konserthus AB
28
Sydvatten AB
0
Rescue Services South
VA Syd
34
The City of Malmö
MKB Fastighets AB
Sydskånes avfallsaktiebolag, SYSAV
441
81
8
Copenhagen Malmö Port AB
23
Malmö kommuns parkering AB
39
Vagnparken i Skåne AB, VISAB
77
Malmö Live Konserthus AB
Malmö Stadsteater AB
Rescue Services South
VA Syd
1
13
0
1
166
46
94
621
22
Amounts in millions of SEK
Group com panies/Malm ö City
Sydskånes avfallsaktiebolag, SYSAV
Incom e and expenses
Incom e
84
Expense
4
4
84
VA Syd
Vagnparken i Skåne AB, VISAB
Loans
Provided
Interest and guarantee
fees
Received
Incom e
Expense
13
Rescue Services South
8
VA Syd
3
Malmö kommuns parkering AB
2
VA Syd
72
MKB Fastighets AB
71
Copenhagen Malmö Port AB
1
Sydvatten AB
145
4
VA Syd
4
145
Sydskånes avfallsaktiebolag, SYSAV
2
2
Copenhagen Malmö Port AB
2
2
Surety
Amounts in millions of SEK
Group com panies/Malm ö City
The City of Malmö
Approved
com m itm ents
Provided
2 668
MKB Fastighets AB
Utilised com m itm ents
Received
Provided
523
Received
2 100
0
42
42
Sydskånes avfallsaktiebolag, SYSAV
Malmö kommuns parkering AB
Sydvatten AB
19
19
507
462
Financial risk-handling and follow-up
In accordance with the council for municipal accounting’s recommendations RKR 20
Accounting of financial assets and financial liabilities as well as RKR 21 Accounting of derivatives and
security accounting, the folowng section contains an explanation and report on how financial
assets and liabilities as well as financial instruments affect the municipality’s result, position
and cash-flow in those parts deemed to be relevant to the municipality’s activity.
The financial infrastructure
The municipal group’s financial activity is controlled by the city council’s Financial regulations
as well as the city executive board’s Financial policy.
The financial activity is brought together in the municipality’s internal bank. The internal
bank is responsible for capital supply and liquidity planning. The internal bank carries out
borrowing on the open capital market via issues of municipal bonds and municipal
certificates as well as invests any surplus liquidity. One of the reasons for this is that a loan
programme, developed relations and necessary other financial agreements have been
established.
Credit grade/Rating
Creditworthiness is one of the factors controlling the prices the municipality has to pay in
the end for issued bonds.
95
Since 2011, the municipality has been rated AAA by Standard & Poor’s, which is the highest
grade on their rating scale. The credit grade corresponds to the same creditworthiness as the
Swedish state. Only a few borrowers globally have the highest credit rating. The credit grade
facilitates the access by the city to the Swedish and international capital markets.
Liquidity
The internal bank handles the municipality and the wholly-owned companies’ liquidity
through a joint group account where the cash-flow of the municipality and the whollyowned
companies is brought together.
The internal bank shall maintain payment preparedness through the liquidity reserves of at
least SEK 500 m being accessible through confirmed loan promises or through its own
liquidity.
As at 31-12-2014, the internal bank’s liquidity reserve amounted to SEK 5,231 m, of which
SEK 1,231 m comprises liquid funds in bank accounts. Liabilities with capital maturity
within 12 months amounted to SEK 3,460 m.
Average interest for the internal banks liquidity administration during 2015 has been 0.08 %.
Loan liability
The municipal group’s total external borrowing amounted at the end of 2015 to SEK 10.9
billion. The loan liability has thus increased by SEK 0.8 billion since the preceding year.
Apart from bank loans, bond loans and commercial paper loans, there is also a financial
leasing liability included in the total group borrowings.
The City of Malmö’s share of the borrowing amounts to SEK 9.8 billion in external bonds
and commercial paper loans as well as SEK 141 m in an interest- and amortisation-free loan
from VA-Syd, regarding share capital in Sydvatten AB.
In addition to the internal bank’s borrowing, MKB Fastighets AB has previously been
permitted to take up loans via both bilateral loan agreements and through issued bonds and
certificates. All MKB’s external loans
were amortized during the year. MKB
Fastighets AB thus has all loans via the
internal bank as at 31-12-2015. Other
loan liabilities in the compiled accounts
relate to the municipality’s share of partlyowned companies’ borrowing.
The average remaining term for the
internal bank’s external loan liability
amounted to 2.6 years at year-end.
96
Lending
The internal bank’s lending to the wholly-owned companies amounted to SEK 8.3 billion at
31-12-2015. All lending from the internal bank was to market conditions.
The average interest income for the internal bank’s lending amounted to 1.45 % in 2015.
The average fixed interest time for the internal bank’s lending amounted to 1.7 years as at
31-12-2015.
Financial risk handling
Risks associated with the city’s financial activity are primarily related to interest risk,
financing risk, counterparty risk and currency exchange risk.
Interest risk relates to the risk of a rapid change in market interest rates affecting the city’s
net financial items negatively.
Financing risk relates to the risk of not having access to, or only at an increased cost, funds
for payments at any given time.
Counterparty risks relate to the risk of the counterparty with whom the municipality has an
investment or a derivative agreement not being able to discharge the obligations contained in
the agreement.
Currency exchange risk relates to the city being affected by increased costs or reduced
income as a consequence of currency exchange rate changes.
Currency and interest rate derivatives may be used for handling risk in the financial activity.
Risk exposure regarding financial items is constantly measured in the municipality’s finance
system. Each month, a financial report is drawn up and submitted to the city executive board
with a balance, result and risk reconciliation.
Type of risk
Policy
Outcom e
Interest risk
diversification of risks through limits
w ithin policy ceiling
Financing risk
2-4 years
2.6 years
Investments
depending on rating
w ithin policy ceiling
Derivatives
depending on rating
w ithin policy ceiling
Counterparty risk
Currency exchange risk
financial currency deals shall be hedged w ithin policy ceiling
Interest risk
The city’s interest risk is understood to mean the risk of a rapid change in market interest
rates impacting negatively on the city’s net financial items. Interest risk handling shall aim to
avoid major and rapid impacts on the net financial items.
Interest risk for the municipality arises in connection with borrowing and lending upon
investments and when making use of interest derivatives both in relation to external
97
counterparties or within the group. Handling of the interest risks shall be apportioned in a
strategy for investments and one for the city’s borrowing and lending together with
associated derivatives.
A change in interest of 1% unit is estimated to affect the City of Malmö’s net financial items
for the coming 12 months by ± SEK 5.7 m.
Derivative instruments are used with the aim of interest and currency exchange securing
underlying loans. The internal bank’s derivative portfolio amounted to SEK 5.8 billion as at
31-12-2015. The market value fell below the nominal value by SEK 146 m. This negative
market value, however does not affect the result, since the municipality’s management of
interest risk meets the requirement for effective hedging of interest risks according to RKR
21. For some interest swaps, where the original hedged item no longer follows the market
interest, due to an negative Stibor, the effectiveness of the interest hedging stops. When
making an overall assessment, the interest hedging is considered as still being effective.
The municipality’s interests expenses during the year, excluding derivatives, amounted to
0.32 %, equivalent to SEK 28 m. The interest expense including derivatives amounted to
1.00 %, equivalent to SEK 89 m.
The fixed interest time for the municipality’s borrowings as at 31-12-2015 amounted to 2.7
years, including derivatives, while the fixed interest time excluding derivatives amounted to
0.7 years.
The average loan interest for the municipality’s outstanding loan liability, including interest
derivatives, amounted to 0.91 % as at 31-12-2015. Excluding derivatives the average loan
interest amounted to 0.23 % by year-end.
Financing risk
With the aim of reducing the municipality’s financing risk for borrowing, terms for capital
due-by dates for borrowing shall be spread over the years. For loans falling due within 12
months, liquidity reserves, cheque credits and loan promises shall cover more than 100%. As
at 31-12-2015, there were SEK 5,231 m of liquidity available, while loans with a maturity
within 12 months amounted to SEK 3,460 m.
Counterparty risks
Investments
Surplus liquidity is invested in the money markets on the basis of creditworthiness
requirements as well as, in certain cases, with term and amount limitations the liquidity shall
be placed primarily in bank accounts or in papers issued by the Swedish state, Swedish
municipalities, credit market institutions and businesses. Amount restrictions per credit
market institution and business means that significant concentrations of credit risk are
avoided.
98
Derivatives
Through financial derivative agreements, the municipality is exposed to a risk of a
counterparty not being able to discharge its obligations. Counterparties are both Swedish and
international banks. City executive board financial policy prescribes that the overall risk in
relation to a single bank may not exceed specific limits depending on the counterparty’s
credit rating.
Currency exchange risk
According to the city executive board’s finance policy, currency exchange risks which arise
when the city borrows or invests in foreign currencies shall be immediately hedged.
The municipality has bond loans for 750 million Norwegian krone. In connection with the
transactions, currency swaps were also carried out, which convert the loan into SEK. Thus
the municipality has no currency exchange risks in its borrowings.
Apart from the aforementioned hedged loan, the municipality only has a transaction account
in EUR. The currency exchange risk is therefore deemed to be insignificant.
99
Operating report
Amounts in thousands of SEK
Costs
Incom e
Budgeted net
cost
Budget
deviation
2015
2015
2015
2015
City council
-24 639
152
-23 496
-992
Audit
-10 313
485
-9 883
56
-958
42
-1 286
371
COMMITTEE/ACTIVITY
Election committee
Patients’ advisory committee
-1 103
0
-1 194
91
Chief Guardians Committee
-25 902
5 051
-19 254
-1 597
Board of Directors
-958 979
435 435
-619 693
96 149
Financial assistance
-966 611
6 637
-949 224
-10 751
Service committee
-2 727 697
2 815 344
20 203
67 444
Technical committee
-1 492 873
760 556
-745 160
12 843
0
23 016
0
23 016
City executive board
Capital gains properties
-64 871
368 590
150 000
153 719
Environmental committee
Profits development activities
-130 207
71 253
-60 304
1 350
City building committee
-150 412
84 638
-72 777
7 003
-20 157
0
-27 889
7 732
-14 214
14 777
0
563
Home Modification Aid
BoPlats Syd
Labour market, upper secondary school and adult
education committee
Comprehensive school committee
-2 136 956
476 867
-1 671 317
11 228
-6 417 881
3 147 716
-3 280 630
10 465
Preschool committee
-4 820 954
2 383 224
-2 443 243
5 513
Culture committee
-476 576
102 318
-376 774
2 516
Recreational committee
-473 551
71 709
-410 170
8 328
-2 668 139
1 468 600
-1 185 386
-14 153
Social resource committee
Social resource committee
Personlig assistans (enl SFB)
City area com m ittee
North - resource distribution
North - direct state funding act.
East - resource distribution
East - direct state funding act.
0
132 973
133 300
-327
-142 742
908
-138 230
-3 604
-1 260 168
567 956
-664 742
-27 470
-27 426
3 239
-27 352
3 165
-1 282 879
668 890
-573 656
-40 333
-44 310
303
-45 601
1 595
-1 520 477
726 935
-768 106
-25 436
-31 210
7 443
-24 572
806
-2 207 637
1 107 366
-1 102 584
2 313
-34 610
803
-33 370
-437
-2 022 578
1 084 562
-929 865
-8 151
-25 361
3 694
-23 299
1 632
City area com m ittee - financial aid
North
-157 404
157 404
0
0
East
-216 450
216 450
0
0
South
-254 255
254 255
0
0
West
-152 300
152 300
0
0
Inner City
-203 710
203 710
0
0
-33 166 510
17 525 604
-15 925 554
284 648
South - resource distribution
South - direct state funding act.
West - resource distribution
West - direct state funding act.
Inner city - resource distribution
Inner city - direct state funding act.
TOTAL COMMITTEES
100
Amounts in thousands of SEK
Costs
Financing
Port facilities
Incom e
Budgeted net
cost
Budget
deviation
-120 951
108 677
-7 200
-5 074
-1 011 932
17 228 458
15 932 766
283 760
TOTAL MUNICIPALITY
-34 299 393
34 862 739
12
563 334
-of w hich Net costs for the operations
-33 502 036
17 784 332
-16 302 188
584 484
0
11 520 710
11 608 200
-87 490
-of w hich General government grants and equalisatio
-160 971
4 883 123
4 694 000
28 152
-of w hich Financial items
-610 011
648 199
0
38 188
0
0
0
0
12
563 334
Treasury management
- of w hich Tax earnings
-of w hich Extraordinary items
PROFIT/LOSS FOR THE YEAR
Investment accounts
Amounts in thousands of SEK
COMMITTEE/ACTIVITY
City council
City executive board
Port facilities
Investm ent
expense
Investm ent
contribution
Net
investm ent
2015
2015
2015
48
0
48
80 369
0
80 369
19 932
0
19 932
1 031 984
28 444
1 003 540
719 698
319 443
400 255
Environment committee
440
0
440
City building committee
1 383
0
1 383
Service committee*
Technical committee
Upper secondary and adult education committe
906
0
906
Comprehensive school committee
40 815
354
40 461
Preschool committee
23 940
0
23 940
Culture committee
16 991
501
16 490
Recreational committee
6 557
0
6 557
Social resource committee
3 790
0
3 790
City area com m ittees
North
979
0
979
East
1 393
0
1 393
South
1 555
0
1 555
West
6 878
0
6 878
Inner City
3 476
0
3 476
1 961 134
348 742
1 612 392
0
0
0
1 961 134
348 742
1 612 392
TOTAL COMMITTEES
Treasury management
TOTAL
101