The economy of the municipality

The yearly operating budget of Luleå kommun is about 4.8 billion SEK. The revenues of the municipality come from three sources: taxes, government grants and external revenues. The costs are mainly salaries for the employees and purchasing of material and service.

The budget is affected by the development of population, political ambitions for the extent and quality of the activities and by legislation. When it comes to the development of population, it includes the total population number and what the age pyramid looks like. Every new citizen increases the tax revenue of the municipality by approximately 50,000 SEK per year.

In order to live up to the municipal law demands of good economy, the aim is among other things to have a balanced budget and a plan covering several years without increase in taxation.

Luleå kommun is growing and has made big investments for a long period of time. During the three year period 2015-2017, the municipality will by estimate invest two billion SEK in, above all, new residential and workplace areas, drainage and water supply, streets and roads, real estate and facilities.

Examples of tax funded areas

School                                       100%

Care of the disabled               100%

Fire and Rescue Services      100%

Preschool                                  93%

Care of senior citizens            94%

Public baths                              50%

Examples of charge funded areas

Drainage and water supply    100%

Where does the money come from?

Taxes                                            73%

Government grants                    9%

External revenues                      18%

This is how the taxpayers’ money is used!

Childcare and Education Department                             40%

Social Services Department                                                36%

Infrastructure, protection                                                   7%

Sports, Leisure and Recreation Department                   5%

City Executive Department                                                  4%

Culture Department                                                              3%

Labour Market Department                                                2%

Public transport                                                                     2%

Financial management                                                         1%

This is how the costs are distributed

Salaries, pensions                                                                   62%

Material, service                                                                     25%

Depreciation                                                                             6%

Allowance payments                                                               6%

Financial costs                                                                          1%