What must be done now?
It has long been discussed in the political environment how the financial situation has become in the municipality, something that over 31,000 thousand inhabitants now have to deal with for a long time to come. The political process that has brought the municipality to where we are now in the past 6-7 years has been emphasized by the Pensioners’ Party for a long time. Everything has been explained until now that this is fully manageable, it just needs a little time and it will be all right, it has been claimed.
We do not think so with the course that has been followed until now. The accounts that have now been presented for 2023 show in their full breadth how serious the situation has become. It is no longer possible to “make up” the accounting results anymore as the deviations have become too large. There is a crisis, says the mayor, in several contexts. It is more than a crisis in our opinion.
The municipality is unable to provide the statutory services to residents in several areas. And it will get worse in the future. The report from Agenda kaupang that has now been submitted, where measures are proposed that do not come close to what the citizens are entitled to in terms of services, fully emphasizes that. Proposal that approx. 40 nursing home places to be discontinued/closed underlines how far this has now gone.
The actual numbers
Let’s take a look at the actual figures that the entire political community now knows and that they now HAVE to deal with.
Early in 2023, it was reported from the CEO that there would be a deficit for the year. It was not accepted by many in the political environment who had the political responsibility. The municipality’s situation is below full
checks and solutions are carried out so that everyone can take it easy, it was claimed from the municipality’s chair.
The result was that approx. 90 million from the premium fund, 37 million from the disposition fund, share dividend from Østfold Energi of approx. 30 million. A total of NOK 157 million extra will be used to “embellish” the result. The difference in premiums increased by 57.8 million to 537.8 million, which is now in the balance sheet and must be accounted for over 7 years.
In addition to this, a deficit within VAR (water, sewage and waste disposal) of 37 million must also be taken care of. The latter here, the residents must pay in bills that come from the municipality 4 times a year (or every month). Loans have been taken out in 2023 of approx. 720 million. Over the course of a few years, interest/payments have increased by 262 million. What is mentioned here must be dealt with by the municipality’s political leadership. It shows how deep the crisis is now.
The challenges
What are the challenges that must now be solved? For the year 2024, a new budget will now be adopted in June. It is
reported until now that, for the most part, the situation has not improved at all in this year that we are now in. It has only gotten worse. The figures that were the result in 2023 we have mostly with us as an “overhang” in the municipality into 2024. In addition, there will also be new expenses that will be covered by the Skofabrikken receiving at least 10 million more in operating expenses than previously assumed.
Halden Arena will receive an annual operating expense of approx. 32.6 million. The base hall with over 10 million. Nye Os school with over 20 million (old and new building). Technically, wage costs increased from 2022 to 2024 by DKK 30 million.
For the salary settlement for 2024, 4.3% has been set aside in the budget, which is at least 2% too little, which will entail expenses of over 20 million more than expected. There is a lack of money for at least 30 nursing home places at a cost of approx. 30 million, compared to the fact that there are some who believe that 40 nursing home places can be liquidated. 70 nursing home places are thus put into play here. These are some examples of how wrong the course is now in the municipality.
What is the solution so that as much as possible is taken care of?
- There must be a sale of municipal property during 2024 of at least 500 million. Roughly the same amount in 2025. Months cannot be used as is now the case when a few plots of land are to be sold. All income from the sale of property must go towards debt repayment.
- Fiscal policy dispositions must be made through a collaboration between the municipality and the Halden municipal pension fund, which frees up 80 – 90 million for ordinary operations in the municipality.
- There must be a reduction in the purchase of third-party services, liquidation of non-statutory tasks and, not least, reorganization in the municipal business so that 100 million is freed up.
What emerges in the 3 points mentioned here is explained in detail in the Pensioners Party’s budget for 2024.
As we see it, there is no other way out of the crisis the municipality is in now, if one is not to increase the fees even more in the municipality.
