The City of Stockholm Annual Report 2019 by blomquist

Annual Report

Structure Target groups The City of Stockholm’s Annual Report gives you an overview of the City’s finances and operations during 2019. The Annual Report is produced by the City of Stockholm’s City Executive Office and is intended for politicians, Stockholmers, users, employees and other stakeholders. Administration Report The Administration Report presents the past year in accordance with Chapter 4 of the Local Government Accounting Act. In the initial part, the fulfilment of the City of Stockholm’s orientation goals and the operational area targets are briefly presented. There is also a brief information here on the City’s financial targets, the Municipal Group’s investing activities and personnel conditions. Annual financial statements The annual financial statements present the income statement, balance sheet and cash flow statement.

City Council orientation goals In the City of Stockholm’s budget, the City Council has e stablished orientation goals, targets for the operational areas, indicators and activities that together measure goal attainment. This section describes how the City met the City Council’s goals. The description is divided by operational area, targets where activities performed during the year and outcomes of indicators are presented. Economic and financial reporting The Annual Report is concluded with an economic and financial analysis of the results for the entire Municipal Group and the City. Accounting policies, definitions, notes and administration report are also included in this section. Digital version The City of Stockholm’s digital version provides the opportunity to follow links for those who want to delve deeper.

How the City is governed Under this section, you can read about the Municipal Group’s governance, the City’s international work and the City’s quality assurance work. The City of Stockholm’s Annual Report 2019 Cover photo Lennart Johansson Inside cover photo Unsplash Production the City Executive Office’s finance department in collaboration with Blomquist Communication – blomquist.se

Foreword – Stockholm the city of possibilities

10 11 12 14 15 18 20

ood financial management and financial G position Balance requirement result The municipal group Key conditions for performance and financial position Events of material importance Expected development Significant personnel conditions Management and follow-up of municipal activities Overview of development of the activities

23 24 25

Income statement Balance sheet Cash flow statement

26 How the City is governed 27 33 35

he municipal group’s governance T The City’s international work The City’s quality work

54 66

modern metropolis with opportunities A and freedom of choice for all A sustainable growing and dynamic metropolis with high growth An economically sustainable and innovative metropolis for the future

City Council orientation goals

38 City Council orientation goals 40

How the City is governed

22 Annual financial statements

Annual financial statements

4 Administration Report

Administration Report

Contents

70 Economic and financial reporting 71 72 74 82 85 86 106 108

Operational reporting Investment reporting Economic and financial analysis Accounting principles Definitions Notes Auditor’s report Committees, companies and foundations

Economic and financial reporting

Stockholm – the c The starting point for the City’s policy, the City’s services and the design of the urban environment in 2019 has been the City C ouncil’s three main orientation goals: A modern metropolis with opportunities and freedom of choice for all, a sustainable growing and dynamic metropolis with high growth and an economically sustainable and innovative metropolis for the future. During the year, the City’s employees have made outstanding efforts for the residents and conducted their activities with a strengthened focus on the City’s core assignments.

n the City of Stockholm and in the Stockholm region, there is a development power and vitality that makes us an employment and growth engine for the whole of Sweden’s development. The City of Stockholm has a fundamentally good and robust economy and the overall assessment is that the City has fulfilled the requirements for good economic management in 2019. The committees’ financial results were SEK +224 million in 2019, of which SEK 46 million relates to the city district councils. Stockholm has sound finances because the activities and operations use the taxpayers’ money efficiently, are frugal and maintain defined budgetary frameworks. At the same time, the activities and operations need to be prepared for changes in the economy, demographic shifts and major investment needs. Efforts to prevent irregular payments will be developed and coordinated. There are signs that economic activity in Stockholm is weakening, but despite a weaker economic climate, employment has devel2

The City of Stockholm’s Annual Report 2019

oped and increased in the City of Stockholm in 2019. Helping to increase security andsafety in Stockholm is one of our foremost tasks. Security and freedom from crime is an important mission for the City. In 2019, a new comprehensive cooperation agreement was signed between the City of Stockholm and the Stockholm Police Region to increase security and reduce crime. Security investments have been made around the city, such as setting up cameras, lighting measures and alarms. Several of the City’s committees have focused on increasing security and attractiveness in the city’s outdoor environments through site interaction. The City’s investment in security guards and more regulated areas continued during the year. During the year, the City developed cooperation between school, pre-school and social services, as well as increased cooperation between home and school.

This is to identify children at risk early, follow up on reports of concern and stabilise children and young people’s schooling. During the year, a strategy has also been developed for how the City can reduce the risk of children and young adults being drawn into crime. School is one of the most important tools for our children and young people to develop and create a good life and to increase social mobility. Equality at school is a prerequisite for all pupils to have the opportunity to succeed. During the year, the city district councils worked to ensure an equal preschool of high educational quality. The Education Committee has worked closely with the district councils on issues that are common to all the city’s pre-schools, such as digital initiatives and the provision of competence. In year 9, grades have improved compared to 2018. The proportion of pupils passing all subjects and the average merit rating have increased.

ity of possibilities During the year, the charge for school swimming was reduced for low-income families. The culture school has offered children and young people an increased range in areas such as short courses, holiday courses, weekend activities, El Sistema activities in schools and targeted free activities in collaboration with schools, for example. The cultural school has also had a record number of student places in the fee-paying activities. The City of Stockholm’s care for the elderly shall be characterised by q uality and freedom of choice. The working method Safe Reception in the Home is aimed at creating a safe and sustainable homecoming for the individual when discharged from in-patient care. This has now been introduced by all district councils. Preventive work to promote the quality of life and health of older people has been strengthened, among other things, by means of food improvement, increasing visits by young people and targeted funds to reduce the involuntary loneliness of the elderly.

In 2019, the City has implemented a number of measures to promote efficient and sustainable transport and good accessibility and achieve climate goals. A continued effort to improve the cycling infrastructure in the city has been ensured by the decision to invest SEK 1 billion during the period 2019–2022. The goal is a well-functioning transport system with minimal climate impact. The green-blue majority has set high housing targets. The 2019 budget introduced a new intermediate target for

housing construction and during the period 2019–2025 70,000 homes will be built, a building rate of 10,000 homes per year. However, the pace of construction remained in line with 2018. The number of homes for which land has been allocated has increased by 32 per cent compared to 2018. The City of Stockholm is well equipped for the 2020s, while work to increase public safety for Stockholm residents must continue, as well as the work for equality in schools, where all pupils have the opportunity to succeed. Stockholm shall also be a city where older people shall be able to live their lives with self-determination, respect and dignity, even at extreme age.

PHOTO: LIESELOTTE VAN DER MEIJS

The City’s strategic business efforts have been sharpened through the Business Policy that has been developed. The aim is to develop the exercise of the City’s authority, stimulate growth and enterprise, improve service and accessibility, create more attractive environments and better navigability and increase access to a skilled workforce with relevant competence. The City, in cooperation with industry and relevant authorities, has initiated the Integration Pact, which improves opportunities for integration and shortens the pathways to work, the Swedish language and people supporting themselves.

continues with vigour. Proposals for a new environmental programme and a new climate action plan have been developed.

Anna König Jerlmyr Mayor of Stockholm

Magdalena Bosson CEO of Stockholm

Work to make Stockholm a fossil fuelfree and climate-positive city by 2040 The City of Stockholm’s Annual Report 2019

PHOTO: HERMAN CAROAN

Administration Report

Administration report

According to the 11th chapter of the Act on Municipal Bookkeeping and Accounting, the municipality shall draw up an administration report in the annual report. It shall be a summary of the annual report with a focus on essential parts of, among other things, the cityâ&#x20AC;&#x2122;s economy and operations.

The City of Stockholmâ&#x20AC;&#x2122;s Annual Report 2019

Administration Report

Good financial management and financial position City Council orientation goals

The City Council decided on the following three orientation goals in the 2019 budget: f A modern

metropolis with opportunities and freedom of choice for all f A sustainable growing and dynamic metropolis with high growth f An economically sustainable and innovative metropolis for the future The orientation goals provide the framework for the City’s management of its operations. The City Council’s goals for the operational areas provide concrete detail to the orientation goals for the various operations that are in the City. The goals are new for the term of office and are therefore not fully comparable with the orientation and operational area goals that existed during the previous term of office (2014–2018). For every goal there are a number of indicators, and for every indicator an annual target has been set. The annual targets is set based on the situation, conditions and level of ambition and based on what level shall be achieved for the respective year. An assessment of goal attainment for the year is based on the outcomes of the City Council’s indicators and activities, whether or not the committees and company boards have met their own goals and indicators and the extent to which they conducted the activities they stipulated in their operational plans. The assessment of target fulfilment also takes into account other material information relating to the operational area. An assessment of all of the City Council’s operational targets has been performed based on that set out above. The overall assessment is that the City fulfilled the requirements for good financial management in 2019 based on the City Council’s long-term goals being judged to have developed in the right direction. The goal assessment for the City Council’s three orientation goals and of the related goals

Municipal Group orientation goals/operational goals

Municipal Group’s goal attainment for the year

A modern metropolis with opportunities and freedom of choice for all

Partially

1.1

In Stockholm, people are self-sufficient and the path to work and proficiency in Swedish is short

Fully

1.2

Stockholm is a safe, secure and well-maintained city to live and stay in

Partially

1.3

In Stockholm, children reach their full potential as Stockholm’s schools and pre-schools are the best in Sweden

Partially

1.4

In Stockholm, people in need of support receive help in good time, characterised by high-quality, evidence and legal security

Fully

1.5

In Stockholm, older people have a life characterised by high quality, security and self-determination.

Partially

A sustainable growing and dynamic metropolis with high growth

Fully

2.1

Stockholm has Sweden’s best business environment and internationally competitive business

Fully

2.2

Stockholm is built attractively and densely, with mixed functions based on the different needs of people and businesses

Partially

2.3

Stockholm’s infrastructure promotes efficient and sustainable transport and good accessibility

Partially

2.4

Stockholm is a modern city of culture and events with a strong tourism industry

Fully

2.5

Stockholm is a sustainable city with a good living environment

Fully

An economically sustainable and innovative metropolis for the future

Fully

3.1

Stockholm has a balanced budget and finances that are sustainable in the long term

Fully

3.2

Stockholm uses tax funds effectively for the greatest benefit for Stockholmers

Fully

for the operational areas is set out in the table above. Assessment is made of whether each goal has been met fully, partially or not at all. With full goal fulfilment, develop ment is assessed to move strongly in the right direction. With partial goal fulfilment, development is assessed to move weakly in the right direction. With no goal fulfilment, development is judged to be going in the wrong direction. For more detailed information about the goal assessments, please refer to the respective goal text later in the annual report, under the heading City Council Orientation Goals.

The City of Stockholm’s Annual Report 2019

Administration Report

Profit for the year for the Municipal Group

Financial targets for the City

The City has set financial targets to guarantee favourable financial development over time. All financial targets were achieved in the short term in 2019. In order for the City to also achieve the financial targets in the long term, the net cost proportion of taxes, general government grants and equalisation items needs to be reduced. The City’s net costs in relation to tax income, general government grants and equalisation This measure establishes that the City’s net expenses may not exceed tax income, general government grants and equalisation over a long-term perspective. Net financial items can also be used in the short term to finance the net operating expenses. In 2019, the net operating expenses accounted for 101 per cent of tax income, general government grants and equalisation. Including net financial items, net expenses constitute 98 per cent. This means that the target was achieved in the short term but not in the long term. Over the past five-year period, net expenses’ share of tax income, general government grants and equalisation has bordered on a desirable level and the average over a five-year period exceeds 100 per cent. As the city grows, net expenses must also grow in order to maintain a well-functioning municipal service. However, the growth in net expenses must not exceed the growth in tax income. Equity/assets ratio The equity/assets ratio measures how much of the City’s assets are financed by equity. The measurement is calculated including pension liabilities, which according to applicable financial reporting are largely off the balance sheet. The target is for the equity/ assets ratio to not go below 34 per cent. In the short term, the value may drop to 30 per cent. The equity/assets ratio was 35 per cent in 2019 and the target is thereby achieved. The measure has remained stable above 34 per cent, but the strong indebtedness resulting from an increased volume of investment for the group entails a risk in the future if the indebtedness trend cannot be slowed down.

SEK

SEK Capital costs as a proportion of net operating costs A higher investment volume means higher operating costs in the form of depreciation and interest. To ensure that these costs do not take an increasingly large part of the City’s total net operating costs, a target has been set whereby these costs may constitute a maximum of 7 per cent of the City’s net costs. In 2019, the capital costs’ share of net operating costs amounted to 6 per cent. The target was thereby achieved. Over the latest five-year period, the outcome has been stable at 6 per cent. Internal interest was raised in 2019, while interest on land was reduced. The changes occurred in accordance with the defined rules for setting interest rates. Interest on land has the greatest impact on the measure and thus contributes to the outcome. Budget compliance Proper budget compliance is an essential condition for effective financial control and, consequently, sound financial management. Budget compliance measures how well financial control is being exercised in respect of conditions defined in the budget. For the committees, there is follow-up of the operating budget including capital costs, the results from the profit centres and the City Executive Board’s technical adjustments, budget adjustments and remittance of profits. The target for budget compliance is that it must not exceed 100 per cent, either before or after technical adjustments. The committees’ outcome accounts for 100 per cent of the budget and the target was thereby achieved. 2019

2018

2017

2016

2015

Net expenses/tax income, equalisation, general government grants

101

100

101

100

-1

Capital costs as a proportion of net operating costs Committees’ outcome as a percentage of budget Committees’ outcome as a percentage of forecast in 2nd four-month report

The City of Stockholm’s Annual Report 2019

million

Surplus for the year for the City

Goal fulfilment 2015–2019, %

Equity/assets ratio including pension liabilities

3,156

2,728

million

Forecast accuracy Forecast accuracy describes the ability to assess deviations and to take action to keep to a set budget. Forecast accuracy is measured as the deviation between the year’s forecasts in the second four-monthly report and outcomes, including capital costs and the results of the profit centres. The outcome in 2019 deviates by 0 per cent from the set forecast and the target was thereby achieved.

Profit for the year for the Municipal Group

After eliminating intra-Group balances, including dividends, the profit for the Municipal Group after taxes and net financial items amounted to SEK 3,156 million (SEK 3,083 million). The profit figure for the Municipal Group includes the results for the City, the Stockholms Stadshus AB Group and the City’s other companies that are not part of the Stockholms Stadshus AB Group. The profit for the year for the Stockholms Stadshus AB Group amounted to SEK 1,858 million (SEK 1,596 million). Appropriations within the Municipal Group The profit for the year after net financial income/expenses for the Stockholms Stadshus AB Group amounted to SEK 2,249 million (SEK 1,897 million). In the financial statements for the Stockholms Stadshus Group, losses in certain subsidiaries are covered by corresponding Group contributions totalling SEK 531 million (SEK 443 million).The dividend to the City in 2019 amounted to SEK 1,500 million. Appropriations for the Stockholms Stadshus AB Group are shown in the table on page 7. In summary, it may be noted that the Group utilised available results to strengthen the equity of subsidiaries as well as to free-up funds for future distribution to the City in an amount of SEK 1,325 million according to the City Council’s budget for 2020. The City’s dividend is preliminary and a final decision on the dividend is made by the City Council in connection with the second four-month report.This means that the City can waive or restrict the dividend if the economic situation so indicates.

Group contributions paid

Group contributions received

Shareholders’ contributions paid

Shareholders’ contributions received

Dividend from the Stadshus AB Dividend, City of Group Stockholm

Parent Company Stockholm Stadshus AB

57,700,000

1,325,000,000

Subsidiaries AB Svenska Bostäder¹

9,603,600

AB Familjebostäder¹

830,500

AB Stockholmshem¹

951,300

Bostadsförmedlingen i Stockholm AB Skolfastigheter i Stockholm AB (SISAB)

39,600,000

Micasa Fastigheter i Stockholm AB S:t Erik Markutveckling

75,900,000

Stockholm Globe Arena Fastigheter AB

97,000,000

Stockholm Vatten och Avfall AB

1,851,290

Stockholms Hamn AB AB Stokab

245,000,000

Stockholm Stads Parkering AB

152,000,000

Stockholms Stadsteater AB

394,000,000

Stockholm Business Region AB S:t Erik Försäkring AB S:t Erik Livförsäkring AB Other companies Group adjustments Total

530,600,000

13,236,690

1,325,000,000

1) The dividend is attributable to Section 3 of the Public Municipal Housing Companies Act

PHOTO: LENNART JOHANSSON

The City of Stockholm’s Annual Report 2019

Administration Report

Appropriations in the Municipal Group, SEK

PHOTO: LENNART JOHANSSON

Administration Report

Surplus for the year for the City

The surplus for the year for the City amounts to SEK 2,728 million (SEK 3,176 million). Capital gains and sales of development properties constitute the largest part of the surplus, SEK 2,453 million. A major sale of leasehold rights to the Stockholm Cooperative Housing Association has been carried out, as well as a sale in the Slakthus area. Sales of development properties have been significantly lower than in the previous year, partly due to a slowing market. The committees contribute to the result by providing a surplus of SEK 224 million, of which SEK 46 million pertains to the District Councils and SEK 178 million the specialist committees. Tax income, including general government grants and equalisation, shows a surplus of SEK 312 million. Provisions for co-financing mainly infrastructural investments have been made at SEK 182 million. The announced additional cost of the expansion of the metro under the Stockholm Agreement has not led to any further provisions, as no agreement has yet been reached and no new negotiations have begun. The conditions for a provision are therefore not fulfilled. The sale of several properties in the Slakthus area and changed plans for the city library have increased planning costs by a total of SEK 140 million. Surplus for the year excluding non-recurring income from sales amounts to SEK 275 million (SEK 624 million). The surplus indicates the operating earnings, i.e. the part 8

The City of Stockholm’s Annual Report 2019

of the City’s operating activity costs that were financed with operating income, such as taxes, fees, government grants and dividend. The non-recurring proceeds from the sale have, in accordance with the City’s investment strategy, been used to finance the City’s investments. The City’s investments amount to SEK 7.4 billion in 2019. The volume of investments could not be financed in full from own resources from the year; part of the City’s assets have been used. The self-funding ratio was 77 per cent (85 per cent). The City’s assets are lent to the City’s companies, for which reason a low level of self-financing for the City means an increase in external borrowing. The external borrowing increased by SEK 9.6 billion during the year. External loan debt now amounts to SEK 57.6 billion, which corresponds to the City’s turnover in 2019 of SEK 57.5 billion. None of the major litigation the City is involved in has received a final ruling during the year and it is still uncertain when this will happen. The disputes concern the companies’ right to deduct interest on loans and water regulation, as a result of the conversion of Slussen and access to Vanadisberget. SEK million

Surplus for the year Less capital gains Provision made

2019

2018

2,728

3,176

-2,453

-2,552

182

506

Less dividend from Stockholm Stadshus AB

-1,500

-1,700

Surplus/deficit excluding capital gains, dividend and non-recurring costs

-1,043

-573

Surplus/deficit in 2019 cleared of non-recurring items and dividend will be negative. A lower financial result and lower dividend from the group of companies gives an almost doubled negative result compared with the previous year. Budget settlement In total, the District Councils and specialist committees report a surplus of SEK 224 million including settlement against surplus reserves. For 2018, the corresponding surplus was SEK 375 million. In 2019, the committees have utilised SEK 125 million from surplus reserves compared to the reserves provision of SEK 185 million made in 2018 . Personnel costs for the City increased by 3.7 per cent compared with the preceding year, a smaller increase than in 2018 (5.8 per cent). The number of full-time equivalents increased by 562, compared with 1,415 in 2018. Employer contributions for the City’s personnel show a small surplus compared to budget. Employer contributions were changed during the year for certain groups of staff. Tax income, equalisation and general government grants deviate by a total of SEK 0.3 billion from budget. Including final settlements, the tax income was SEK 0.1 billion higher than budgeted, i.e. a marginal difference. At the time of budgeting, it was not known whether any so-called welfare billions would be paid out, as was the case. The adjustment item therefore shows a surplus of SEK 0.3 billion.

SEK

The City’s investment expenditure in 2019 amounts to SEK 7,433 million (SEK 7,349 million), a slight increase the previous year, a major slowdown in the rate of increase. Investment income for the year amounts to SEK 230 million (SEK 210 million). Net investment expenditure amounts to SEK 7,203 million (SEK 7,139 million), which is SEK 1.1 billion lower than budgeted. The implementation rate for the City’s net investments is thus 87 per cent, the same as the previous year.

Operating results 2019

275 million

In 2019, the Municipal Group’s gross investments amounted to SEK 20,104 million (SEK 19,171 million). The gross investments of the Stockholms Stadshus AB Group in 2019 totalled SEK 12,858 million (SEK 12,582 million). The company group’s gross investments consist primarily of new housing construction, schools and infrastructure such as ports and facilities for water/sewage works.

Investments net expenditure per committee See Figure 1. The Real Estate Committee is responsible for the greatest deviation. The deviation is explained by a number of investments in real estate and sports facilities being postponed. The City has also decided to change the orientation of some projects, with the result that funds have not been used during the year as planned. The City Development Committee’s deviation in net expenditure is mainly due to the fact that investment income in the larger projects has been higher than budgeted. The budget deviations of the Cemeteries Committee and the Transport Committee are explained by project postponements. The investment expenses’ deviation from the budget is, in many cases, due to time delays in the investment projects, whose implementation time spans a number of calendar years. It will only be possible to measure the outcome of the projects once they have been completed and final accounts have been prepared. Financially, a certain postponement means a lower impact in the current year.

Administration Report

Municipal Group investments

Figure 1 Investments, net expenses per committee (SEK million) 2019

Budget

Outcome

Deviation

City Executive Board etc.

-4.1

-2.1

2.0

Service Committee

-1.0

-0.5

0.5

The district councils

-375.6

-317.6

58.0

-6.0

-2.7

3.3

Development Committee

-3,561.1

-3,277.9

283.2

Real Estate Committee

381.6

Labour Market Committee

-2,758.9

-2,377.3

Sports Committee

-70.1

-70.0

0.1

Culture Committee

-43.5

-29.4

14.1 130.6

Cemeteries Committee

-184.6

-54.0

Environment and Health Committee

-1.3

-1.4

-0.1

Social Services Committee

-8.0

-12.5

-4.5

Urban Planning Committee Traffic Committee Education Committee

-3.0

-0.1

2.9

-1,115.3

-933.0

182.3 16.4

-135.0

-118.6

Elderly Services Committee

-3.5

-5.3

-1.8

Public Trustees Committee

-0.1

-0.0

-8,271.1

-7,202.5

1,068.6

TOTAL

Figure 2 Investments during a five-year period

2019

2018

Gross investments per year, SEK billion

7.4

7.3

Self-funding ratio (%)

2017

2016

2015

5.9

5.8

4.9

135

123

Investments during a five-year period See figure 2. The aim of the City’s investment strategy is for the self-funding ratio to reach 100 per cent in the long term, although it may deviate in some years. The self-funding ratio in 2019 was 77 per cent. Calculated as an average of the last five years, the self-funding ratio is 99 per cent.

The City of Stockholm’s Annual Report 2019

Administration Report

Balanced-budget requirement result Reconciliation with the balanced-budget requirement shall be made in accordance with the requirement of chapter 11 section 5 of the Swedish Local Government Act for a balanced economy and the reconciliation is formulated according to the Act on Municipal Bookkeeping and Accounting, chapter 11, sections 9–10. The aim of the

balanced-budget requirement is to show that a municipality is not living beyond its means. Capital gains and some other non-recurring income affecting comparability are deducted from the surplus. According to the legal requirement, income from the sale of development properties can be included in the balance requirement investigation, which

2019

2018

2017

2016

2015

Profit for the year

2,728

Less income affecting comparability

-1,722

3,176

2,361

4,643

1,924

-563

-1,533

-418

-364

Balance requirement result for the year

1,006

2,613

828

4,225

1,560

is done below. The City’s surplus, adjusted in accordance with the Local Government Act requirements, shows that the City meets the requirement for a balanced budget as there is a positive balance requirement result of SEK 1,006 million (SEK 2,613 million).

PHOTO: SANNA LINDBERG

The City of Stockholm’s Annual Report 2019

Administration Report

The municipal group City of Stockholm Municipal commission companies

Municipal Group

The City’s operations organisation no. 212000-0142

Co-owned companies with no significant influence

The City’s companies and statutory joint authorities

External providers

SÖRAB (5 %)

Rinkeby-Kista District Council Spånga-Tensta District Council Hässelby-Vällingby District Council Bromma District Council Kungsholmen District Council Norrmalm District Council Östermalm District Council Södermalm District Council Enskede-Årsta-Vantör District Council Skarpnäck District Council Farsta District Council Älvsjö District Council Hägersten-Liljeholmen District Council Skärholmen District Council Labour Market Committee City Development Committee The Property Management Committee Sports Committee Culture Committee Cemeteries Committee Environment and Health Committee Service Committee Social Services Committee City Planning Committee Traffic Committee Education Committee Election Committee Senior Citizens Committee Public Trustees Committee City Executive Board etc.

Voting numbers and subsidiaries are shown in a note in the balance sheet. The City has chosen to organise large uniform assignments in company form in order to achieve specialist competence and consistency based on clear owner directives. Freedom of choice is achieved through the use of external providers 1 2 3

Stockholms Stadshus AB Parent Company

AB Svenska Bostäder AB Familjebostäder AB Stockholmshem Bostadsförmedlingen i Stockholm AB Skolfastigheter i Stockholm AB, SISAB S:t Eriks Markutveckling AB Micasa Fastigheter i Stockholm AB Stockholm Vatten Holding AB (98%)1 Stockholms Hamn AB AB Stokab Stockholms Stads Parkerings AB Stockholm Globe Arena Fastigheter AB Stockholms Stadsteater AB S:t Erik Försäkrings AB Stockholm Business Region AB S:t Erik Livförsäkring AB Mässfastigheter i Stockholm AB (50.4%)2 Stockholm Exergi Holding Ab (50%)3

Statutory joint authorities

Certain City matters are handled by legal persons other than the City. A list of the areas of operation handled in this way follows, along with a statement of the cost and percentage of the City’s costs for that area of operation. In total, the City paid SEK 20.1 billion to external providers.

Political operations and joint administration

mnkr

109,1

1,0

Individual and family care 1 246,0

Infrastructure, urban environment, safety/security 1 612,8

56,7

Pre-school operation and out of school hours activities

42,2

3 857,5

Primary/secondary school 3 634,8 35,0 Upper-secondary school

2 029,9

52,2

Other educational activities 206,5

68,5

Elderly care services

4 651,6

58,9

Support and services for people with disabilities 2 483,4

57,1

Leisure and culture/general leisure activities

158,8

8,5

81,8

10,8

Business, industry and housing

Greater Stockholm Fire Brigade, SSBF

Huddinge Municipality holds the minority shareholding Stockholm Chamber of Commerce owns the minority Fortum Power and Heat AB owns 50 %

The City of Stockholm’s Annual Report 2019

Administration Report

Key conditions for performance and financial position Financial risks and risk management

The finance policy is decided by the City Council and sets out the goals and guidelines for the financial activities of the municipal group and identifies the financial risks to which the municipal group is exposed and how they shall be managed. The risks are monitored continually by a risk control function and are reported to the City Executive Board Finance Committee. The municipal group is exposed to mainly the following risks: interest rate risk, financing risk, credit and liquidity risk, market risk. Interest rate risk Debt management is effectively handled within the limits that exist in accordance with the defined finance policy. In the analysis of borrowing, unless otherwise stated, the currency-hedged amount is used according to the application of hedge accounting. As at 31 December 2019, the City of Stockholm Municipal Group had an external debt portfolio amounting to SEK 57,601.9 million (SEK 48,105.7). The external debt portfolio increased by SEK 9,496.2 million during 2019. The net debt portfolio, i.e. grossdebt minus investments, was SEK57,585.0 million (SEK 48,050.9 million) for the group, which is an increase of SEK 9,534.1 million for the corresponding period. The increase in debt is due to a continued high level of investment in the municipal group, which is partly financed by loans. Interest rate risk is expressed as average fixed-rate duration for the external debt portfolio, as well as a defined interest rate maturity structure. The duration (including derivatives) must be neither shorter than 1.5 years nor longer than 4.5 years. The average fixed-rate period for the external debt portfolio was 2.0 years (1.9 years) at 31 December 2019. Excluding interest rate swaps, the average fixed-rate period was 1.7 (1.5) years. A maximum of 65 per cent of the debt portfolio may mature within one year and at the balance sheet date 38.5 (40.2) per cent of interest rates matured within one year. Borrowing occurs at both fixed and variable rates in the domestic and international loan market. All derivative instruments outstanding on the balance sheet date are, in accordance with the finance policy, hedging instru12

The City of Stockholm’s Annual Report 2019

ments designed to manage the interest rate and currency risk of the Municipal Group’s debt portfolio. As at the balance sheet date, currency and interest rate derivatives amounted to a total nominal gross amount of SEK 11,395.1 million (SEK 13,344.7 million). Financing risk Financing risk is the risk of being unable to refinance at maturity, or only being able to borrow at a significantly higher cost. Financing risk is managed, as far as possible based on market conditions, by spreading capital maturities over time. The City of Stockholm works actively to manage the maturity structure and widen the investor base and works with many different counterparties, resulting in a reduced refinancing risk. According to the finance policy, the external debt portfolio shall have a capital maturity structure in which a maximum of 45 per cent may mature within one year. At the balance sheet date, 18.2 per cent (19.1 per cent) of the capital fell due within one year. A maximum maturity of 10 years applies to borrowing. Liquidity risk In order to ensure borrowing, when other financing is not possible, the municipal group shall always have access to a payment funding of at least SEK 6,500 million according to the finance policy. At the balance sheet date, the payment funding ceiling totalled SEK 10,500 million (SEK 9,000 million) and available payment funding amounted to SEK 9,750 million (SEK 9,037 million). Credit risk Credit risk is the risk of a counterparty being unable to honour its payment obligations. The credit risk is measured as credit value and exposure per counterparty or instrument according to the finance policy. The lowest permitted rating for credit exposure is BBB+ at Standard and Poor’s and Moody’s credit rating agencies.

Market risk Market risk is defined as the risk of interest rate, exchange rate and price fluctuations, resulting in an unfavourable change in the value of assets and liabilities. At the balance sheet date, the municipal group has no financial investments other than special decisions in the City Council of SEK 16.9 (17.8) million. The City of Stockholm uses derivatives, according to the finance policy, to minimise the risk of unexpectedly higher interest expenses caused by interest rate and exchange rate fluctuations during the term of the loans in the debt portfolio. Currency risk According to the finance policy, loans and investments are to be hedged at 100 per cent. The portion of the external debt portfolio that is in foreign currency, 15.4 per cent NOK, is converted to SEK through swaps. Thus, there is no currency risk in the external debt portfolio. Contracted flows in foreign currency above the equivalent of SEK 25 million shall be reported in accordance with the finance policy.

Pensions

Provisions for defined-benefit retirement pensions including special tax on pension costs are recognised in the balance sheet at a total of SEK 7,392 million. Pension provisions have increased by 11.7 per cent (9.1 per cent) during the year. The larger increase is due to two factors. The number of employees in the City has increased and some of the new employees qualify for a defined benefit occupational pension. Wage increases lead to more of the existing staff coming up to income levels that provide defined benefit occupational pension. The entire working hours to date in the municipal sector then become the basis for the defined benefit pension, which increases the debt. The pension provision is calculated based on the guidelines of the Swedish Association of Local Authorities and Regions, RIPS19. The

Municipal Group’s internal dealings 2019, SEK million

Internal purchases which have been eliminated

5,103.0

Internal sales which have been eliminated

5,103.0

Internal receivables, excluding the Group account, which have been eliminated

1,638.2

Internal liabilities, excluding the Group account, which have been eliminated

1,638.3

basis for the calculations is the KAP-KL pension agreement. For employees born in 1986 and later, the agreement AKAP-KL, which is fully defined contribution, applies. The pension provision earned up to and including 1997 constitutes a contingent liability and amounts to SEK 16,366 (16,736) million, including a special tax on employment income. This portion of the pension provision is recognised as a contingent liability in accordance with the rules of the so-called mixed model. The balance sheet therefore portrays a more positive picture of the financial position. This part of the liability is therefore included in a calculation of the equity/assets ratio. This year’s reduction in contingent liability is expected and a further reduction is to be expected. The pension costs of the younger staff (born after 1985) are paid as they are earned. Overall, therefore, a reduction in pension liability and contingent liability is to be expected. However, the debt in the balance sheet is not expected to start to decrease until the 2040s.

Administration Report

At year-end, the City’s external loan debt amounted to

SEK

57.6 billion According to the Council’s decision, the City’s pension liability is secured in the City’s assets. This means that no pension insurance is taken out and no funding is made. The cost of defined contribution retirement pension and special payroll tax in 2019 is estimated at SEK 1,026 million, an item that will thus grow with the number of employees born after 1985.

PHOTO: SARA MAC KEY

The City of Stockholm’s Annual Report 2019

Administration Report

Events of material importance Below are events and decisions during the year that are of material importance to the municipal group and the City.

Events f

The City’s site interaction and site activation have been developed. Special efforts have been made at Hässelby Torg, Sergels Torg and Medborgarplatsen. Central to the initiatives is to attract more visitors during a greater part of the day. The City’s investment in security guards has continued during the year. The number of city-wide security guards has increased. A city-wide civil defence project has begun, initially focusing on knowledgeenhancing efforts. Work to increase security in Järva, especially in areas classified by the police as particularly vulnerable, has intensified. The project Collaboration Järva has been strengthened by developing the key municipal assignments and mobilising and coordinating the city’s actors. A number of efforts have been made during the year against violent extremism (VBE), including a VBE team formed by the social services committee. During the year, the City of Stockholm

participated in the trial programme Faster Prosecution of Young Offenders. The government has decided that the trial programme will continue and be expanded to cover the entire Stockholm Police Region as a measure against gang crime. The working method Safe Reception in the Home, with the aim of creating a safe and sustainable homecoming for the individual when discharged from in-patient care, has continued and has now been introduced by all district councils. The City has implemented a procurement of a digital key system, Smart Locks, for users and employees of the home care service, which shall be introduced in stages over the next three years. The purpose is to increase the safety and security of elderly people with home care. Three primary and secondary schools have been completed in the city: Bobergsskolan in Royal Seaport, years F–6, with room for 900 pupils, Sjöviksskolan in Årstadal, years F–9, with room for 1,200 pupils and

Ekängensskola, which is a new school building for Johan Skytteskolan pupils in years F–6. A major sale of leasehold rights to the Stockholm Cooperative Housing Association has been carried out during the year, as well as a sale in the Slakthus area. Sales in the Slakthus area mean that Atrium Ljungberg will continue to develop parts of the Slakthus area. The City has initiated a multi-year research collaboration with KTH Royal Institute of Technology and the Massachusetts Institute of Technology (MIT) on how digital technology affects and changes people’s lives in urban environments. The purpose is to support and develop sustainable urban planning and development in Stockholm. The City’s and Sisab’s first pre-school built with passive building technology has been opened in Årsta. All parts of the property interact in order to make the energy consumption as low as possible.

Decisions f

The City has developed proposals for a new security and safety programme, which sets overall goals for the City’s work for the years 2020–2023, which are scheduled to be adopted in 2020. The municipalities and Region Stockholm have adopted the Regional Agreement on Cooperation on Discharge from In-patient Health Care in Stockholm County, which entered into force on 1 January 2020. The City Council has decided to adopt an agreement with Greater Stockholm on maintaining cost responsibility when moving to special housing between the municipalities in Stockholm County. The City Council has made an orientation decision for Södra Solvallastaden. In the The City of Stockholm’s Annual Report 2019

area, the building of approximately 1,700– 2,200 homes, businesses, hotels, a primary and secondary school for years F–9 and a number of pre-schools is proposed. The City Council has made an orientation decision for Gjutmästaren. Within the properties Gjutmästaren 6 and 9 in Ulvsunda industrial area, a transformation of the area around the former Pripps brewery is planned. The City Council has made an orientation decision for Riksby. In Riksby, 3,000– 4,000 homes, businesses, pre-schools and schools, sport and recreation and improved park and green structure are planned.

The City Council has made an implementing decision for Mälaräng, which is one of the major sub-projects within Focus Skärholmen. In the area, a total of about 1,100 homes, two pre-schools, a new F–9 school with 900 pupil places and additional areas for shops and ground floor premises are planned. An agreement on advance payment of previously agreed municipal co-financing of rail public transport has been reached between Region Stockholm and the municipalities concerned, so as to bring forward the planning phase for the Metro Älvsjö-Fridhemsplan, the Roslagsbanan line to City and the Spårväg Syd tram.

Note that the basis for this section was developed before the effects of the Corona pandemic were known.

The boom is over

After several years of recovery, the global economy has entered a phase of more subdued growth. In 2019, the global economy was characterised by the USA-China trade conflict and the uncertainty surrounding Brexit. China’s economy grew by 6.1 per cent, which is the lowest growth rate for 29 years, while the American economy continued to perform well with very low unemployment. The International Monetary Fund (IMF) estimates that the entire world economy grew by 2.9 per cent in 2019, after an increase of 3.5 per cent in 2018. Growth is projected to pick up slightly in 2020 and 2021, with increases of 3.3 and 3.4 per cent respectively. The Swedish economy is also in a slowdown phase. Swedish GDP developed weakly in 2019 and is estimated to have increased by 1.2 per cent. The National Institute of Economic Research estimates that GDP

growth will slow further in 2020 and will reach 0.7 per cent, a situation that can be described as a mild recession. Housing construction is expected to fall slightly further in 2020, although most of the decline is expected to be over. The weakening of the labour market that began to be felt in 2019 is also expected to continue in 2020. The employment rate is therefore falling slightly and the unemployment rate is expected to continue to rise in 2020 and 2021. At the end of December 2019, unemployment amounted to 6.9 per cent of the labour force and, according to the National Institute of Economic Research, unemployment will reach 7.4 per cent in 2021.

Weaker tax base development

The City of Stockholm’s economy depends to a large extent on how the national economy develops, as the City’s funding is largely based on tax income. As a result of poorer economic activity, Swedish Association of

Local Authorities and Regions (SKR) expects a slowdown in tax base growth in Sweden in 2020. The main reason is a decrease in the number of hours worked. Growth in the tax base is projected to amount to 2.6 per cent in 2020, compared to the historical average in recent decades of around 4 per cent per year.

Signs of weakening in economic activity in Stockholm

Economic activity in Stockholm is also showing signs of slowing down. The Chamber of Commerce’s economic barometer, which reads the confidence in the future of companies and households in Stockholm County, shows a worse-than-normal economic situation. In the third quarter of 2019, the economic indicator weakened by nearly three units to 93. This means that companies estimate that economic activity is worse than the normal historical level and that households in Stockholm County have a lower confidence in the economy than normal (100). In terms of economic activity in recent years, the Stockholm economy is now in a clear slowdown phase. See Figure 1 on page 16.

PHOTO: ANDERS SJÖBERG

The City of Stockholm’s Annual Report 2019

Administration Report

Expected development

Administration Report

Figure 1

Stockholm Barometer in a longer time perspective

120 110 100 90 80 70 1

QUARTER 2 3 4

2006

QUARTER 2 3 4

2007

QUARTER 2 3 4

2008

QUARTER 2 3 4

2009

QUARTER 2 3 4

2010

QUARTER 2 3 4

2011

2012

QUARTER 2 3 4

2013

QUARTER 2 3 4

2014

QUARTER 2 3 4

2015

2016

QUARTER 2 3 4

2017

QUARTER 2 3 4

2018

QUARTER 2 3 4

2019

Footnote: Barometer indicator based on both households and companies in Stockholm. Index, average = 100. Seasonally adjusted values. Source: National Institute of Economic Research and the Stockholm Chamber of Commerce

Figure 2

Employed as a proportion of the population aged 15-74, major cities

76 %

Stockholm Gothenburg Nationwide Malmö

Figure 3

Key employment figures for the city 2018

2019

Change

74.7 %

74.4

+0.3 p.e.

Relative unemployment rate, percentage of workforce*

5.4%

6.1 %

+0.7 p.e.

Enrolled openly unemployed (December)**

18,844

20,555

+9.1 %

64 %

Recently registered vacancies (December)**

18,969

13,512

-28.8 %

62 %

Start-up companies***

74 %

Employment rate, aged 15–74*

72 % 70 % 68 % 66 %

60 % 58 %

Key figures

12,809

+2.6 %

Sources: *Statistics Sweden, ** Public Employment Service, ***Swedish Companies Registration Office

1 05 06 07 08 09 10 201 012 2013 014 015 016 2017 018 019 2 2 2 2 2 2 20 20 20 20 20 20

Footnote: The statistics have been revised for the period July 2018 to September 2019. Source: Statistics Sweden/LFS

Figure 4 Relocations to and from the City of Stockholm in 2019

Country Stockholm County

Net relocation for Stockholm*

8 529 17 369

17 828 Stockholm

19 848

41 196

35 206

Total

4,870

of which abroad

8,840

of which other counties

2,020

of which Stockholm County * People moving in minus moving out

13,148

The City of Stockholm’s Annual Report 2019

-5,990

Administration Report

Employment growth slows slightly

Despite a weaker economic climate, employment has developed relatively well in the City of Stockholm in 2019; see Figure 2. The number of employed people aged 15–74 increased by 1.6 per cent in 2019 compared to 2018. This is a lower growth rate than the previous year but higher than the national average, where employment increased by 0.7 per cent. Theemployment rate, which measures the proportion of employed persons as a percentage of the population, continues to increase and stands at 74.4 per cent, which is significantly higher than in the rest of the country and in the other major cities.

Unemployment rises

In 2019 there was a break in the previous trend and unemployment began to rise after a long period of decline. At the end of December, the number of registered unemployed persons in the City of Stockholm increased by about 1,700 to 20,555, compared to December the previous year. Over the same period, the unemployment level increased by 0.7 percentage points to 6.1 per cent. See Figure 3 Key employment figures for the city. The Swedish Public Employment Service’s forecast for 2020 shows that the labour market in Stockholm will continue to be good in the coming years, with a high demand for labour. Labour shortages remain an obstacle to job growth in Stockholm. The imbalance between employers’ demands and the labour supply’s skills persists. Many registered unemployed are in a weak position in the labour market. Unemployment is significantly higher among foreign-born people, but the largest difference in unemployment rates is between people with a shorter or longer education. Upper secondary education is often a basic requirement of the county’s employers and education is an increasingly important part of labour market policy.

Stockholm an increasingly attractive tourist destination

A clear measure of Stockholm’s attractiveness is the development of the tourism industry. 2019 was another record year for Stockholm’s tourism industry with more than 15.2 million bed nights in the county, of which 10.2 million were in the City of Stockholm. These figures do not include overnight accommodation of the Airbnb type or overnight stays of those visiting and staying with family and friends. Germany regains first place in terms of the number of foreign bed nights, followed by the USA and the United Kingdom.

High population growth continues In 2019, Sweden’s population grew by 97,404 to just over 10.3 million, which was

974,073 people lived in the City of Stockholm at the end of 2019.

12,946

children were born in the City of Stockholm during the year.

a slightly lower increase than the previous year. Stockholm County grew by 32,957 people to 2,377,081. This means that the county accounted for 34 per cent of Sweden’s population increase, which is a somewhat higher proportion than in 2018, when the country’s share was 32 per cent of the population increase.

pattern seen today of an increase in emigration was also evident when those born in the 40s and 60s were at an age to start a family. Improved commuting opportunities, combined with housing shortages throughout the county, mean that more and more people are now also looking across the county border in search of a new home.

At year-end, the City of Stockholm had a population of 974,073, which was an increase of 11,919. 12,946 children were born in the City of Stockholm in 2019, which is 65 fewer than in 2018. The number of deaths was also slightly lower than in 2018 and overall births exceeded deaths by 6,677 in 2019, which means a net increase compared to 2018.

Demographic challenges and major investment needs

Relocations to and from the City of Stockholm in 2019

Figure 4 on the left illustrates relocations to and from the City of Stockholm in 2019. The total number of relocations across the city limits was nearly 140,000. The top arrow in the diagram illustrates foreign relocations to and from the City of Stockholm, which result in a positive net foreign relocation equivalent to 8,840 people. The arrows in the middle show the relocation flows with other counties in Sweden (+2,020), and the bottom arrows show relocations from and to the rest of Stockholm County (-5,990). Relocations both to and from municipalities in the rest of the county have had an increasing trend that is in line with the increased population. But in recent years, the exodus has increased more markedly, both to the rest of the county and to the rest of the country. This is explained by the large groups born in the late 80s and early 90s who are now at an age to start a family and looking for a larger home. In general, homes are larger in the other municipalities in the county and the

The strong population growth is proof that the city and the region are attractive. At the same time, strong population growth means a major challenge and major investments. More housing, commercial premises and public service premises, not least school premises, will be needed and public transport and other infrastructure needs to be expanded. At the same time, the proportion of older people is also increasing and more and more people need the support of fewer and fewer. In the City of Stockholm, the number of people over 80 years of age is expected to increase by around 49 per cent by 2028, and by 100 per cent by 2040. Demand for health and social care will increase at the same time as needs change. Welfare is facing a major structural change that will require new ways of working and smart use of new technology. The high volume of investment makes it of the utmost importance that the City’s committees and company boards work on the management and follow-up of investment projects. The rate of investment that is economically sustainable depends not only on the size of the investments but also on the extent to which the investments are financed from own or borrowed funds. The municipality group’s self-financing ratio averaged 60 per cent during the period 2014–2019. As a result, the municipality group’s debt has more than doubled during the corresponding period. The City of Stockholm’s Annual Report 2019

Administration Report

Significant personnel conditions PHOTO: HENRIK TRYGG

Sick leave is decreasing

The City uses two methods to measure sick leave. Sick leave is measured both in accordance with the statutory requirement, and in accordance with the City’s own definition in the indicator Sick leave. The measurement methods have various qualities. Sick leave measured in accordance with statutory requirement provides a good overview of the level of sick leave, as well as comparability with other municipalities and county councils. Sick leave measured using the City’s own method provides a better picture of trends and, consequently, provides a better basis for follow-up and analysis. Unless otherwise stated, the information on sick leave in the City’s reports has been produced using the City’s own measurement method. The statutory reporting of sick leave is based on somewhat different assumptions from the City’s internal measurement 18

The City of Stockholm’s Annual Report 2019

method. The City’s method compares sick leave with contracted working hours. The statutory reports compare sick leave with ordinary working hours, which means that unpaid absence, such as parental leave or leave of absence, is not included. The fact that unpaid absence is excluded means that the regular working hours are lower than the working hours used in the City’s internal measurement method. Consequently, the statutory reports will show a sick leave level above that of the City’s sick leave indicator. Total sick leave measured in accordance with statutory requirements decreased by 0.1 percentage points, from 7.0 per cent to 6.9 per cent, during the period 2018 to 2019. Out of the total sick leave, 46.5 per cent lasted 60 days or more. The corresponding figure for 2018 was 45.9 per cent. This was an increase of 0.6 percentage points. The City’s work on the work environment and health is pre-

sented later, under the operational area goal “Stockholm uses tax funds effectively for the greatest benefit for Stockholmers”. The City’s companies have lower sick leave than the City’s councils and committees. When companies are included, the total sick leave figure stands at 6.0 per cent, which is a decrease compared to 2018, when total sick leave was 6.1 per cent.

Employees in figures

In December 2019, a total of 44,813 people were employed by the City of Stockholm. Of these, 41,783 worked in the City’s committees and 3,030 were employed in the City’s companies. Around three-quarters of the employees were women. This table presents the number of employees by operational area.

Administration Report

44,813

Around three-quarters of the employees in the City of Stockholm are women.

people were employed in the City of Stockholm in December 2019.

Sick leave according to statutory requirements 1 Jan 2019 – 31 Dec 2019 Age groups Total

Women

Men

–29

30–49

50–

6.9

7.7

4.8

6.2

6.6

7.5

Sick leave as a percentage of regular working hours Proportion of total sick leave that lasted 60 days or more

46.5

Sick leave, according to the City’s own measurement method, 1 Jan 2019 – 31 Dec 2019

Sick leave as a percentage of contracted working hours

Total

Women

Men

2.1

2.2

1.8

Long-term absence, day 15–

4.0

4.5

2.3

Total

6.0

6.7

4.1

Short-term absence, day 1–14

Number of employees (salaried) by operational area 2019 Operational area

Women

Men

Political operations and joint administration

1,366

Individual and family care

3,137 710

Infrastructure, urban environment, safety/ security

2018

Year on year change

Total

580

1,946

1,951

-5

853

3,990

4,120

-130

519

1,229

1,214

Pre-school operation and school child care

9,845

1,815

11,660

11,846

-186

Education

9,245

3,831

13,076

12,701

375

Elderly care services

4,462

1,010

5,472

5,547

-75

Support and services for people with disabilities

1,642

571

2,213

2,224

-11

Leisure and culture/general leisure activities

982

772

1,754

1,890

-136

Business, industry and housing

207

159

366

365

-1

1,313

1,717

3,030

2,956

Total

32,958

11,855

44,813

44,892

-79

Full-time equivalent employees

31,948

11,505

43,453

43,469

-16

Other operations, special initiatives Stockholms Stadshus AB Group

In addition to the employees paid monthly, employees paid by the hour worked an equivalent of 3,340 annual full-time jobs. Compared with 2018, there has been an increase of 0.8 per cent in the hours worked by hourly-paid staff. This figure only refers to the administrations, not the companies.

The City of Stockholm’s Annual Report 2019

Administration Report

Management and follow-up of municipal activities The City Executive Board’s supervisory duty

City governance according to ILS

The City’s vision City Council orientation goals

City Council’s goals for the operational area

City Council’s indicators and activities

Committees’/boards’ goals

Follow-up and analysis

Governance

The supervisory duty is defined by Sweden’s Local Government Act as managing and coordinating the administration of the municipality’s affairs. This applies to both the City’s committees and the City’s wholly and partially owned limited companies; see Appendix 4. As part of its supervisory duty, the City Executive Board has examined the committees’ operational plans, including risk and materiality analyses for 2019. In cases where committees had set annual targets for indicators which were too low, they were urged to come up with more ambitious targets with the aim of achieving the City Council’s annual targets. The supervisory duty was also exercised through the City Executive Board’s follow-up of the four-monthly reports and the annual report for the whole municipal group. The City Executive Board shall annually determine whether the wholly-owned and part-owned companies have conducted their respective operations in compliance with the objectives adopted by the City and within the framework of the municipal powers of the City. The City Executive Board considers that during the previous calendar year the companies in the Stockholm Stadshus AB group have carried out activity compatible with the stated purpose.

Committees’/boards’ indicators and activities

The unit’s goal, expected result, work method and resource consumption

The unit’s follow-up, results, analysis and development

The City’s management and control system

All planning and follow-up take place in accordance with the City’s management model, the integrated system for management and governance of operations and finances (ILS). As an aid in this work, there is a webbased tool (ILS web) which is used at all levels in the City. In the annual budget, the City Council establishes orientation goals and targets for the operational areas, indicators and activities that together measure goal attainment. For each indicator, the City Council establishes an annual target. The committees and company boards set out the City Council’s goals for the operational areas in concrete form through the respective companies’ targets.

Internal control

During the year, the City continued to further develop its work on internal control. In the development work, the focus has been on strengthening knowledge of internal control, 20

The City of Stockholm’s Annual Report 2019

clarifying responsibilities and roles and improving the City’s work on documentation and follow-up. The City’s application instructions have been updated, among other things, to clarify the requirements imposed on committees and company boards. In order to simplify documentation and follow-up of internal control work, the City’s digital system support has been further developed.Training and workshops have also been conducted for City managers and employees. Work on the City’s internal control is integrated into the City’s management and governance. All Committees shall carry out an annual materiality and risk analysis identifying measures, if necessary, aimed at risk reduction and consistency. On the basis of the materiality and risk analyses, the committees shall develop an internal control plan and follow up internal control during the year.

The committees’ evaluation of internal control All but two committees consider that internal control has been adequate during the year. These two committees consider their internal control to be partly adequate and describe the need to develop the documentation of the checks carried out, the follow-up of planned measures and self-monitoring. The City Executive Office systematically monitors the committees’ work on internal control and is in dialogue with the committees on possible development needs. The City Executive Office can confirm that work on internal control has developed during the year, in particular the committees’ follow-up. All the committees have carried out a materiality and risk analysis, developed an internal control plan and followed up the work.

Administration Report

Overview of development of the activities General

Population national share, per cent percentage of population aged 15–74 Unemployment rate, percentage of workforce aged 15–74

2015

2016

2017

2018

2019

923,516

935,619

949,761

962, 154

974,073

9.4

73.4

73.9

74.0

74.1

74.4

6.9

6.1

5.4

6.1

220,055

233,635

245,950

257,681

270,142

per resident, SEK**

241,292

252,985

262,874

271,311

280,768

national average for the same, SEK

194,220

201,878

208,818

215,942

221,097

Stockholm, SEK

29.86

30.06

29.98

29.82

Of which the City:

17.68

17.90

17.74

Region

12.10

12.08

Burial fee

0.075

0.065

Taxable income, SEK million*

Total municipal tax rate:

assemblies

Total municipal tax rate, nationwide, SEK Consumer price index, annual national average (1980=100) Inflation (annual average), per cent

31.99

32.10

32.12

32.19

313.35

316.43

322.11

328.40

334.26

0.0

1.0

1.8

2.0

1.7

2015

2016

2017

2018

2019

Change in equity for the year, SEK million

1,924

4,643

2,361

3,176

2,728

Surplus for the year in accordance with balanced-budget requirement, SEK million

1,560

4,225

828

2,613

1,006

Operating costs, SEK million

48,350

51,887

52,947

54,877

56,553

Operating income, incl. taxes and general government grants, SEK million

49,229

53,188

54,821

56,266

57,458

The City’s operations

Assets, SEK million

133,427

138,735

147,274

159,061

170,714

per resident, SEK

144,477

148,282

155,064

165,318

175,258

Liabilities, SEK million

70,671

71,336

77,514

86,125

95,050

of which provisions

12,565

14,265

17,646

18,265

18,768

liabilities per resident, SEK

76,524

76,245

81,614

89,512

97,580

Equity, SEK million

62,756

67,399

69,760

72,937

75,664

per resident, SEK

67,953

72,037

73,450

75,806

77,678

4,923

5,759

5,908

7,349

7,433

Number of employees, approx.

38,325

39,868

40,691

42,231

42,079

full-time equivalents, approx.

36,765

38,267

39,302

40,594

40,503

Salaries and related expenses, SEK million

17,864

19,501

20,593

21,780

22,581

2015

2016

2017

2018

2019

Equity/assets ratio, % Investments (gross), SEK million

Majority-owned limited companies’ operations

Number includes companies/groups Balance sheet total, SEK million Revenues, SEK million Profit after tax, SEK million

122,325

137,934

143,424

151,125

158,807

15,214

15,980

16,320

17,224

17,773

1,086

1,347

1,913

1,597

2,577

Equity, SEK million

60,704

57,974

63,681

63,510

64,167

Investments (gross), SEK million

10,936

10,374

10,923

12,690

12,982

Number of employees, converted to full-time equivalents

2,817

2,895

3,103

3,236

3,306

Salaries, SEK million

1,374

1,437

1,511

1,610

1,687

* Tax assessment year ** Number of residents in the assessment year *** The summaries do not pertain to the compiled accounting (Municipal Group), but rather only the sum of the companies included

The City of Stockholm’s Annual Report 2019

PHOTO: LENNART JOHANSSON

Annual financial statements

The City of Stockholmâ&#x20AC;&#x2122;s Annual Report 2019

SEK million

The City Note

31/12/2019

31/12/2018

The Municipal Group 2019 Budget

31/12/2019

31/12/2018

24,473.9

Operating income

12,340.0

12,297.6

8,474.3

25,145.2

Income affecting comparability

2,525.0

3,041.6

0.0

3,082.6

3,126.9

3,4

-56,553.1

-54,882.5

-53,423.3

-63,787.9

-61,759.6

Operating costs Costs affecting comparability

-592.2

-1,600.7

0.0

-625.8

-1,623.6

Depreciation

-1,578.7

-1,448.5

-1.412.7

-5,642.1

-5,204.4

-43,859.0

-42,592.5

-46,361.7

-41,828.1

-40,986.8

Net operating costs Tax income

49,184.8

47,714.0

49,069.3

49,184.8

47,714.0

General government grants and equalisation

-4,066.9

-3,745.3

-4,263.7

-4,066.9

-3,745.3

Profit from participations in associated companies

Operational results

1,258.9

1,376.2

-1,556.1

242.8

555.8

3,532.6

3,537.7

Financial income

2,199.8

2,450.5

2,306.2

323.6

145.8

Financial expenses

-731.1

-650.2

-750.0

-700.6

-600.3

2,727.6

3,176.4

0.1

3,155.6

3,083.2

Surplus after financial items Extraordinary items Surplus for the year Less income affecting comparability Surplus for the year after balance requirement adjustments

0.0

2,727.6

3,176.4

0.1

3,155.6

3,083.2

-1,721.2

-563.1

0.0

1,006.4

2,613.3

0.1

The amounts in the tables are rounded and so do not add up exactly. Explanatory notes can be found under the section Notes later in the annual report.

The City of Stockholmâ&#x20AC;&#x2122;s Annual Report 2019

Annual financial statements

Income statement

Balance sheet SEK million

Assets Non-current assets Intangible non-current assets Intangible non-current assets

The City Note

31/12/2019

31/12/2018

85.0

69.5

85.0

69.5

56,001.7 939.4 26,373.0

55,061.5 829.2 21,787.2

149,198.9 10,746.6 48,716.5

142,839.5 9,411.0 43,187.8

83,314.1

77,677.8

208,662.1

195,438.2

4,388.8 16.1

4,265.6 16.9

3,607.5 5,913.5 82.3

3,245.3 6,095.6 77.9

4,404.9

4,282.5

9,603.3

9,418.8

87,719.0

81,960.3

218,350.3

204,926.6

1,328.1 3.4 81,643.7 12.6 7.7

1,727.8 4.8 75,303.3 14.8 50.0

1,328.1 41.1 4,762.4 135.2 167.0

1,727.8 41.6 4,811.9 196.9 59.1

82,995.3

77,100.7

6,433.6

6,837.3

170,714.3

159,061.0

224,783.9

211,763.9

2,727.6 0.0 72,936.6

3,176.4 0.0 69,760.2

3,155.6 0.0 123,985.3

3,083.2 0.0 120,902.7

75,664.2

72,936.6

127,140.9

123,985.9

7,392.0

6,620.6

11,376.5

11,643.8

9,700.8 1,635.8 11,541.3

8,788.6 1,482.1 11,836.4

18,768.4

18,264.5

22,877.8

22,107.1

31,608.0 15,756.5 772.8

27,830.5 12,700.0 562.1

31,608.0 15,756.5 1,230.5

27,830.5 12,700.0 953.1

48,137.4

41,092.6

48,595.1

41,483.5

Total intangible non-current assets Tangible non-current assets Land, buildings and plant Machines and inventory Construction, extension and conversion work in progress

14 15 16

Annual financial statements

Total tangible non-current assets Financial non-current assets Shares and participations Proportion of equity in associates Non-current receivables

17 18 19

Total financial non-current assets Total non-current assets Current assets Development properties Inventories and work in progress Current receivables Current investments Cash and bank deposits

20 21 22 23 24

Total current assets Total assets Equity and liabilities Equity Surplus for the year as per the income statement Profit equalisation reserve Other equity

25,26

Total equity Provisions Pensions and similar commitments Deferred tax liabilities Other provisions Total provisions Non-current liabilities Bond loans Promissory note loans Government loans Other non-current liabilities

The Municipal Group

29 30 31

Total non-current liabilities

31/12/2019

31/12/2018

Current liabilities Current liabilities Current loans

32 33

17,658.2 10,486.1

19,081.2 7,686.3

15,648.6 10,521.5

16,486.6 7,700.7

Total current liabilities

28,144.3

26,767.4

26,170.2

24,187.4

170,714.3

159,061.0

224,783.9

211,763.9

35 36 37 38 38 38 39

484.9 16,366.1 5.5 22.5 12,001.4 62.2

411.9 16,735.8 -291.9 0.0 11,329.6 103.2

507.2 16,366.1 5.5 113.8 4,237.6 29,960.0

498.8 16,735.8 -291.9 91.6 4,465.1 23,439.1

1,062.1

1,234.2

265.7

Total equity and liabilities Pledged assets Contingent liabilities and guarantees Pension liability, contingent liability, incl. employerâ&#x20AC;&#x2122;s contribution Derivative instruments; market value Financial leasing agreements paid Leases, operating leases, paid Leases, operating leases, received Additional dividend 2012, Section 5:1 Public Municipal Housing Companies Act remains Additional dividend 2013, Section 5:1 Public Municipal Housing Companies Act remains Additional dividend 2014, Section 5:1 Public Municipal Housing Companies Act remains The Cityâ&#x20AC;&#x2122;s share in municipal group companies

The City of Stockholmâ&#x20AC;&#x2122;s Annual Report 2019

Cash flow statement SEK million

The City

The Municipal Group

31/12/2019

31/12/2018

31/12/2019

31/12/2018

41 42 43

2,727.6 -2,453.1 2,525.2 -50.0

3,176.4 -2,552.1 2,507.1 -77.7

3,155.6 -2,738.8 6,522.1 -50.0

3,083.2 -2,617.0 5,773.5 -77.7

2,749.8

3,053.7

6,888.9

6,161.9

-6,338.2 1.4 627.6

-6,516.0 -0.7 486.6

104.8 0.5 1,792.6

390.7 1.5 1,225.5

-2,959.4

-2,976.4

8,786.8

7,779.5

-399.8

-364.2

-399.8

-364.2

-7,310.6 2,942.0 -123.8 0.7 -

-7,098.1 3,207.5 -240.7 13.5 -

-4.6 221.9 -19,910.3 3,845.7 -300.4 7.0 -

-6.6 0.0 -19,562.6 3,275.0 -240.7 6.2 -

Cash flow from investment activities

-4,491.8

-4,117.8

-16,140.7

-16,528.7

Financing activities Newly raised loans Repayment of non-current liabilities Increase/decrease of non-current liabilities Increase/decrease of non-current receivables

16,628.6 -5,626.6 -3,943.6 0.8

13,439.4 -5,430.0 -31.4 0.8

16,628.6 -5,626.6 -3,890.5 0.8

13,439.4 -5,430.0 1,498.8 0.8

7,059.2

7,978.7

7,112.3

9,508.9

-791.7 50.0 -741.7

520.2 -470.2 50.0

-641.4 59.1 -582.3

395.5 -336.4 59.1

12,356.8 14,878.2 12,356.8

14,878.2 15,940.9 14,878.2

-44,987.6 -38,426.2 -44,987.6

-38,426.2 -29,324.8 -38,426.2

Current operations Surplus for the year Reversal of capital gains/losses Adjustment for non-cash items Decrease in provisions due to payments Funds from operations before change in working capital Increase/decrease in current receivables Increase/decrease in stocks and inventories Increase/decrease in current liabilities

44 45

Cash flow from current operations Payment of contributions to state infrastructure* Payment of contributions to state infrastructure Investment activities Investment in intangible assets Sale of subsidiary Investment in tangible non-current assets Sale of tangible non-current assets Investment in financial assets Sale of financial assets Other change in non-current assets

46 47 48 49 50

Cash flow from financing activities Cash flow for the year Cash and cash equivalents at start of year Cash and cash equivalents at end of period Interest-bearing net assets/liabilities Interest-bearing net assets/liabilities at start of year Interest-bearing net assets/liabilities at end of period

52 53

* See Note 43, grants for government infrastructure are broken out from the reduction of the provision and recognised separately.

The City of Stockholmâ&#x20AC;&#x2122;s Annual Report 2019

Annual financial statements

Note

PHOTO: HENRIK TRYGG

How the City is governed

The City of Stockholmâ&#x20AC;&#x2122;s Annual Report 2019

The municipal groupâ&#x20AC;&#x2122;s governance Below is a description of the municipal group as of 1 January 2020 based on areas of responsibility.

City Council

Finance Committee Integration Committee

How the City is governed

Election Committee

City Audit Office

City Executive Board

City Executive Office

Group Board of Directors

Public Safety Committee Council of Mayors

Stockholms Stadshus AB

Divisions

District councils/ administrations

Specialist committees/ administrations

Company boards/ companies

The City of Stockholmâ&#x20AC;&#x2122;s Annual Report 2019

City Council The City Council is the City of Stockholm’s highest decision-making body. Its 101 members are elected in general elections held at the same time as Parliamentary and County Council elections. After the elections in September 2018, the majority in the City Council consists of the Moderate Party, Liberals, Green Party, Centre Party and Christian Democrats with 54 seats against 47 seats for the opposition parties. On 31 December 2019, 50 of the 101 councillors were women, and 51 men. The City Council sets goals and guidelines for the City’s operations. The issues ruled on

by the City Council are drafted by the City’s committees and boards. The City Council sets tax rates, tariffs and fees, budgets and performance requirements, as well as objectives and visions for the City’s committees and limited companies. The political decisions are implemented by the City Executive Board, the City’s committees and companies, or by others on their behalf. As a rule, the City Council convenes every third Monday. The meetings are open to the public. The City Council has its own auditors, the City Audit Office, which audits all municipal operations.

50 51 On 31 December 2019, 50 of the 101 councillors were women and 51 men.

City Executive Board How the City is governed

The City Executive Board comments on all decisions made by the City Council. The Executive Board also has overall responsibility for ensuring that decisions are implemented and followed up. General responsibilities include managing and coordinating the administration of the City’s affairs, and supervising the operation of other committees and companies. The Executive Board is also responsible for the City’s financial management and long-term development. The City Executive Board has 13 members, who

represent both the majority and opposition parties on the City Council. The City Executive Board has a Finance Committee, an Integration Committee and a Public Safety Committee. The City Executive Board has an administrative unit, the City Executive Office, to support it in its mission. The City Executive Office plays a central, strategic role in the governance of the City. It is responsible for

controlling, following up and developing the City’s finances and operations, and for ensuring that political decisions are implemented. It also fills a secretariat role for the City Council and the City Executive Board, and is responsible for collecting and archiving copies of public documents. The City Executive Office is headed by the Chief Executive Officer, assisted in managerial functions by a Deputy Chief Executive Officer.

Seats on the City Council following the election in September 2018 The City Council consists of 101 members. The Presidency consists of the President, as well as the 1st and 2nd Vice Presidents.

Presidency

The City of Stockholm’s Annual Report 2019

Socialdemokraterna (Social Democrats)

Moderaterna (Moderate Party)

Vänsterpartiet (Left Party)

Liberalerna (Liberal Party)

Miljöpartiet (Green Party)

Centerpartiet (Centre Party)

Sverigedemokraterna (Sweden Democrats)

Kristdemokraterna (Christian Democrats)

Feministiskt initiativ (Feminist Initiative)

Mayor, Vice Mayors and Divisions After the election of 2018, the political has organisation ten governing Vice Mayors. They are full-time elected representatives and are elected by the City Council. The Mayor and Vice Mayors are each responsible for a division. A division serves as a staff function for the Mayor or Vice Mayor, and drafts matters for the City Executive Board and the City Council. There are also five Vice Mayors representing the opposition parties. The Mayor and Vice Mayors jointly form the Council of Mayors. The joint work is led by the Mayor of Stockholm, who chairs both the Council of Mayors and the City Executive Board.

City Planning Division Urban Planning Committee, Micasa Fastigheter i Stockholm AB, Skolfastigheter i Stockholm AB, Stockholm Globe Arena Fastigheter AB, Stockholms Hamn AB and Stokab. The office of the Vice Mayor for City Planning is responsible for directing the committees and boards that report to the Vice Mayor. f Vice Mayor for City Planning: Joakim Larsson (M) Office of the Vice Mayor for Housing and Real Estate Real Estate Committee, Cemeteries Committee, the Housing Companies and Bostadsförmedlingen i Stockholm AB. The office of the Vice Mayor for Housing and Real Estate is responsible for directing the committees

and boards that report to the Vice Mayor. f Vice Mayor for Housing and Real Estate: Dennis Wedin (M) Office of the Vice Mayor for Schools and Education Education Committee and District Councils – pre-school. The office of the Vice Mayor for Schools and Education is responsible for directing the committees and boards that report to the Vice Mayor. f Vice Mayor for Schools and Education: Lotta Edholm (L) Office of the Vice Mayor for Social Affairs Social Services Committee, Public Trustees Committee, District Councils – Financial Support, Individual and Family Care, Support and Service for Persons with Disabilities. The office of the Vice Mayor for Social Affairs is responsible for directing the committees and boards that report to the Vice Mayor. f Vice Mayor for Social Affairs: Jan Jönsson (L)

PHOTO: LIESELOTTE VAN DER MEIJS

Majority Mayor and Vice Mayors: Daniel Wedin (M) – Vice Mayor for Housing and Real Estate:, Lotta Edholm (L) – Vice Mayor for Schools and Education, Jan Jönsson (L) – Vice Mayor for Social Affairs, Daniel Helldén (MP) – Vice Mayor for Transport, Anna König Jerlmyr (M) – Mayor of Stockholm, Erik Slottner (KD) – Vice Mayor for Elderly Care and Public Safety, Karin Ernlund (C) – Vice Mayor for Labour Market, Integration and Sports, Jonas Naddebo (C) – Vice Mayor for Culture and Urban Environment:, Katarina Luhr (MP) – Vice Mayor for Environment and Climate, Joakim Larsson (M) – Vice Mayor for City Planning.

The City of Stockholm’s Annual Report 2019

How the City is governed

Mayor’s Office The City Executive Board, the City Executive Board’s Finance Committee, the City Development Committee, the Service Committee, the Election Committee, District Councils – general and finance, Stockholms Stadshus AB, Mässfastigheter i Stockholm AB, the Greater Stockholm Fire Brigade and other companies not assigned to one of the

Vice Mayors. The Mayor’s Office manages and plans the political work. f Mayor of Stockholm: Anna König Jerlmyr (M)

Office of the Vice Mayor for Environment and Climate Environment and Health Committee, Stockholm Vatten och Avfall AB, Waste Management Committee and the City Executive Board’s Council for Agenda 2030. The office of the Vice Mayor for Environment and Climate is responsible for directing the committees and boards that report to the Vice Mayor. f Vice Mayor for Environment and Climate: Katarina Luhr (MP)

PHOTO: LIESELOTTE VAN DER MEIJS

Office of the Vice Mayor for Transport Transport Committee, City Executive Board’s Council for Disability Issues, Stockholms Stads Parkerings AB. The office of the Vice Mayor for Transport is responsible for directing the committees and boards that report to the Vice Mayor. f Vice Mayor for Transport: Daniel Helldén (MP)

Oppositional Vice Mayors: Jan Valeskog (S), Clara Lindblom (V), Karin Wanngård (S), Emilia Bjuggren (S), Olle Burell (S).

PHOTO: LIESELOTTE VAN DER MEIJS

How the City is governed

Office of the Vice Mayor for Labour Market, Integration and Sports Labour Market Committee, Sports Committee, District Councils – labour market measures, children, culture and leisure, the Hotellhem Foundation in Stockholm and the City Executive Board’s integration committee. The office of the Vice Mayor for Labour Market, Integration and Sports is responsible for the governance of the committees and boards organised under the Vice Mayor. f Vice Mayor for Labour Market, Integration and Sports: Karin Ernlund (C)

City Council: City Council: 2nd Vice-President Ann-Katrin Åslund (L), Chair Cecilia Brinck (M), 1st Vice-President Rana Nasrindotter (S).

PHOTO: LIESELOTTE VAN DER MEIJS

Office of the Vice Mayor for Culture and Urban Environment Culture Committee, District Councils – urban environment, Stockholms Stadsteater AB, Council for Protection of Ecological and Aesthetic Matters. The office of the Vice Mayor for Culture and Urban Environment is responsible for directing the committees and boards that report to the Vice Mayor. f Vice Mayor for Culture and Urban Environment: Jonas Naddebo (C) Office of the Vice Mayor for Elderly Care and Public Safety Elderly Services Committee, District Councils – elderly care, the City Executive Board’s Public Safety Committee, City Executive Board’s Council for Retirement Issues. The office of the Vice Mayor for Elderly Care and Public Safety is responsible for directing the committees and boards that report to the Vice Mayor. f Vice Mayor for Elderly Care and Public Safety: Erik Slottner (KD)

CEOs: Magdalena Bosson – CEO of Stockholm and Gillis Hammar – Deputy CEO.

The City of Stockholm’s Annual Report 2019

Day-to-day operations Day-to-day operations are carried out by the City’s administrations and companies. These are led by politically appointed committees and boards, the proportionate political distribution of which reflects the distribution of seats on the City Council. The members of these committees and boards are appointed by the City Council. Information on meetings, as well as minutes and documents is available at edokmeetings.stockholm.se.

Resource allocation models In the budget, funds are allocated to the District Councils using a system adopted by the City Council. The resource allocation system is based on the operational responsibility of the District Councils and on demographics. The District Councils are allocated resources on the basis of the estimated need for municipal services, rather than the actual costs involved. This gives District Councils the freedom to organise their own activities, provided that they comply with the guidelines adopted by the City Council.

The specialist committees are: f f f f f f f f

Labour Market Committee Waste Management Committee City Development Committee Real Estate Committee Sports Committee Culture Committee Cemeteries Committee Environment and Health Committee

f f f f f f f f

Service Committee Social Services Committee City Planning Committee Transport Committee Education Committee Election Committee Elderly Services Committee Public Trustees Committee

PHOTO: RYNO QUANTZ

The City of Stockholm’s Annual Report 2019

How the City is governed

Some City of Stockholm operations are conducted as companies. Most are coordinated through the Group Board of Stockholms Stadshus AB. The City is also part of a statutory joint authority with nine municipalities in the Stockholm region through the Greater Stockholm Fire Brigade. A number of operating foundations also cooperate with the City and carry out operations for the benefit of the city and its residents. The City’s specialist committees have a city-wide responsibility for their respective operations. Each committee has an administration with officials who carry out the day-to-day work. The members of the committees are politicians who have ultimate responsibility for the operation.

Stockholm’s 14 District Councils (see map on page 32) are responsible for a large part of the municipal services within their geographical areas. The City Council allocates money and decides on the overall goals and guidelines. It is the District Councils that then decide how the money is to be distributed to meet the local needs of the District Council’s area. The funds allocated to the District Councils amount to approximately half of the City’s budget. Activities are financed mainly through local taxation and government grants, and, to a lesser extent, through fees.

City of Stockholm’s District Councils

1 Rinkeby-Kista 2 Spånga-Tensta 3 Hässelby-Vällingby 4 Bromma 5 Kungsholmen 6 Norrmalm 7 Östermalm 8 Södermalm 9 Hägersten-Liljeholmen 10 Skärholmen 11 Älvsjö 12 Enskede-Årsta-Vantör 13 Skarpnäck 14 Farsta

Footnote: In 2020, Hägersten-Liljeholmen and Älvsjö district councils will be merged into Hägersten-Älvsjö district council.

3 How the City is governed

5 9

7 8

12 14

The District Councils’ areas of responsibility include the following: f f f f f f f

Pre-school activities Activities for children, culture and leisure Elderly care services Support and services for people with disabilities Individual and family care including social psychiatry Urban environment operations Financial assistance and labour market measures

The City of Stockholm’s Annual Report 2019

The City’s international work PHOTO: MARC ZETTERBLOM

Stockholm is part of a global context. In order to realise the City’s intentions for a modern metropolis with opportunities and freedom of choice for all, a sustainable growing and dynamic metropolis with high growth and an economically sustainable and innovative metropolis for the future, Stockholm needs to conduct active international work, learn from others, act proactively and be seen and compare and cooperate internationally. To further increase the benefit of the City’s international work, a city-wide international strategy forms the basis of the international work of all committees and company boards.

Important international contexts

How the City is governed

In 2019, the City has continued to choose to participate in various international contexts with the aim of positioning Stockholm and to hear how other cities work successfully with challenges that the City is facing. At the political level, the City was represented at the EUROCITIES Mayors’ Forum in Brussels; 2019 Forum for Future Cities: Urban Intelligence, in Boston; Nordic Capital Conference and Urban Future Global Conference in Oslo; EU Capital Mayors Meeting in London and C40 World Mayors’ Summit in Copenhagen. In Stockholm, the year began with the New Year’s Day concert to which the diplomatic corps was invited in order to establish closer contacts with the City’s representatives. In 2019, the Presidium of the City Council received 33 foreign cabinet ministers, ambassadors and presidents on courtesy visits. Visiting programmes were prepared for 77 visiting mayors and officials, as well as foreign government and parliamentary representatives with the aim of positioning Stockholm, developing international contacts and exchanging experiences. Copenhagen Mayor Frank Jensen on a study visit to Royal Seaport together with Anna König Jerlmyr.

During the year, 50 representation receptions were held, 10 of which were organised together with Region Stockholm. In particular, receptions in connection with Senseable Stockholm Lab, Champions Tour & Stockholm Horse Week and Trilateral Commission European Meeting. On the occasion of the 100th anniversary of the Urban and Municipal History Institution in 2019, a lecture and a special reception were arranged. A lunch and lecture were also organised for the celebration of the Council for Protection of Ecological and Aesthetic Matters’ 100th anniversary. The City also organised a lunch for the women’s national football team,

the Nordic World Heritage Conference in collaboration with the Medieval Museum and a dinner on the occasion of the Nordic Safe City Summit.

Collaboration in international organisations and networks

The City Executive Board was a member of 13 international organisations and networks at the end of 2019. In one of the networks, EUROCITIES, the City is chair. The City’s committees and boards were members of 81

international organisations and networks in total at the end of 2019, which is three fewer than were reported in 2018. However, the change has been greater. In order to achieve a higher degree of business benefit, many of the City’s administrations and companies have reviewed, submitted and entered into new international contexts during the year. During the EUROCITIES annual meeting in Prague, the City of Stockholm was re-elected as president of the organisation. The presiThe City of Stockholm’s Annual Report 2019

The City Executive Board was a member of

international organisations and networks at the end of 2019.

During the EUROCITIES annual meeting in Prague, the City of Stockholm was re-elected as president of the organisation.

PHOTO: DAVID PREUSS

dency offers the City a unique opportunity to drive EUROCITIES’ development in a direction that benefits the City’s interests at EU level. As President, Stockholm is the public face of the network to the EU institutions at a time when much is at stake for Europe and its cities. The City’s involvement in the network seeks to strengthen the City’s advocacy work towards EU institutions, develop the City’s European network further and give the City more visibility at an EU level. In 2019, the Presidency has offered a number of opportunities for high-level meetings, including with the Vice-President of the European Commission responsible for climate policy; the EU Transport Commissioner and then chair of the European Parliament’s Committee on Industry, Research and Energy; and the chair of the European Parliament’s Environment Committee.

Stockholm and the EU

How the City is governed

The City of Stockholm’s operations are extensively affected by various EU initiatives and in 2019 the City has therefore continued to conduct active lobbying work in questions that are decided at EU level. Lobbying work on the EU’s future budget and cohesion policy has been a particular priority during the year and the work has largely been done in cooperation with other European and Swedish cities. The City also finances and operates through the Stockholm region’s EU offices. In 2019, the City was a driving force in development work with the Stockholm region’s EU offices in order to create better organisation and coordination between the EU Office and its financiers. A modern, sustainable, innovative and dynamic metropolis requires that new ways of working are constantly being developed. Participating in EU-financed projects contributes to developing both the operations and the skills of the City’s personnel, by revising and developing approaches and working methods as well as testing and introducing innovative new solutions. In 2019, seven new projects were granted co-financing from the EU’s various funds and programmes, with the City as the project principal or project participant, which is an increase over 2018. In total, the City received approximately SEK 44 million in EU funding in 2019.

Anna König Jerlmyr with Frans Timmermans, Vice-President of the European Commission with special responsibility for the European Green Deal.

The City of Stockholm’s Annual Report 2019

The City’s quality work

Quality development

The committees describe how they work on systematic quality work, which is based on the City’s integrated management and governance system and the Programme for Quality Development, as well as internal control and the management system for systematic quality work SOSFS 2011:9. Among other things, they describe how they work continuously to develop and implement methods, processes, procedures and working methods for increased efficiency and higher quality in the operations. Most committees also describe how they collect and use Stockholmers’ views, through, among other things, user surveys and user dialogues, in the follow-up and evaluation of their activities. Comments and complaints and Lex Sarah are reported to the committees, as well as in many cases how they are used in the development of operations. Several committees state that they have focused on developing contact with residents. In adult education, the Labour Market Committee has started work to investigate how the customer experience can be systematically and continuously measured, followed

“

Several committees state that they have focused on developing contact with residents.

up and improved using satisfaction barometers. The Urban Planning Committee has started work to make it easier for individuals and entrepreneurs to be in contact with the committee, including by developing digital services and creating clearer contact routes to the committee. The Transport Committee, which receives more than 100,000 comments and complaints annually, has introduced a service centre to further improve feedback to residents. In connection with the 2019 European elections, the Election Committee set up a call centre where citizens could turn for help with answers to questions and make comments and complaints. Cooperation between the City’s committees continues to be developed and structured. The technical committees City Development Committee, Urban Planning Committee, Transport Committee and Environment and Health Committee have common procedures in the tool Ledstången in development projects that describe the division of responsibilities between the committees. The Labour Market, Education and Social Services Committees, together with the Swedish Public Employment Service and the social insurance agency Försäkringskassan, have received funds to carry out the preliminary study BRON (bridge). Innovative working methods will create transitions to the labour market for upper secondary school pupils and participants in daily activities. The Labour Market, Education and Social Services Committees also continue to work together to ensure that young people covered by the Temporary Upper Secondary School Act are offered studies leading to establishment on the labour market. Skärholmen and Älvsjö district councils have together developed a digital introduction for employees. Östermalm district council has started to cooperate with Enskede-Årsta-Vantör district council and The Reality Lab. Most committees describe how they continuously develop their processes to ensure the achievement of goals. The City Development Committee has a quality system with a focus on the development process, the Development Handbook. During the year, the Real Estate Committee introduced new tools for changing working methods, mainly regarding a new project model and new system for property management. The Labour Market Committee has created new structures and methods for analysis and follow-up. A new method for evaluating and measuring the quality of new interventions is the Outcome Rating Scale (ORS). Evaluations show that a

large majority of participants consider themselves to have come closer to work and studies after completing the activity. The committee has also supported units, including by implementing the support material “Analysis support for the labour market administration”. Kungsholmen and Östermalm district councils have conducted analysis training for managers and key personnel, in order to strengthen the ability to perform analyses. Some committees also state that they have made adjustments to the organisation in order to ensure greater achievement of the goals. In order to achieve more effective governance and coordination of the Transport Committee’s operational development, a position has been created of development manager with responsibility for controlling and supporting the work with screening and review of the office’s working methods and processes. The Culture Committee: City Archives has changed in 2019 to a process-based organisation to strengthen the focus on value creation from a holistic perspective and develop planning and follow-up. The employees’ knowledge, participation and treatment are important in the development of operations. During the year, the Sports Committee continued to develop systematic development work for managers and employees. The Culture Committee: City Archives describes how they use the Programme for an Equal Stockholm and the Programme for Equal Rights and Opportunities regardless of sexual orientation, gender identity or gender expression as a support for quality development in a norm-conscious and inclusive way. The Elderly Services Committee has started work on a more operation-adapted introduction programme for managers in elderly care to better complement the general education that the City provides for new managers within the City. Development of the work on systematic quality activities based on SOSFS 2011:9, for example by integrating it into ILS web, mapping processes etc., continues in most district councils. In 2019, the City Audit Office carried out a review to assess whether the committees carry out systematic quality work in social services’ individual and family care, in accordance with the rules of the National Board of Health and Welfare. The City Audit Office confirms that work is ongoing to develop systematic quality work within the committees that are investigated. The overall assessment, however, is that the committees The City of Stockholm’s Annual Report 2019

How the City is governed

The residents of the City of Stockholm are entitled to expect excellent service for their tax money throughout their lives. The quality-related work carried out by the City is aimed at developing and improving the quality of all operations. Creating value for the City’s residents and entrepreneurs is the focus of all development work. In order to meet future challenges, it is becoming even more important to also develop and promote the work of innovation. In order to achieve success in quality and innovation work, a good knowledge of the needs and wishes of the residents and companies and in many cases cooperation within a committee, between committees and with external actors is required. The City’s committees describe to varying degrees collaborations with others in order to develop quality and innovations. The following describes some of the developments that occurred in the committees with regard to quality development and innovation. The issues are also highlighted in relation to the City Council’s goals for the areas of activity. See, for example, the goal Stockholm uses tax funds effectively for the greatest benefit for Stockholmers.

do not fully carry out systematic quality work in accordance with the rules of the National Board of Health and Welfare. Among other things, the investigation reveals shortcomings regarding the committees’ work on self-inspections and non-conformance management, which has now been addressed.

Innovation

The City of Stockholm’s innovation strategy gives a focus on how the City shall strengthen its innovation abilities and promote innovation among managers, employees and the City’s suppliers. The committees describe how they continue to develop their assignments on innovation, learning and collaboration. This may include, for example, establishing structures for cooperation with academia and private and public actors, but also creating internal structures to strengthen innovation capacity. Several committees report on various innovation projects in which they participate in one way or another.

How the City is governed

In 2019, several committees have continued to develop an internal structure to strengthen innovation efforts. The City Development Committee has set up a new coordination group, focusing on development, research and innovation, to support the committee’s work with a view to sustainable urban development. For its own innovation work, the Real Estate Committee has an innovation group whose task is to monitor, take care of and evaluate the innovations received and proposals from employees as well as external partners. Kungsholmen District Council has also created an innovation group that will monitor and spread good ideas. Skärholmen District Council has an innovation and digitalisation group and arranged an internal innovation and digitalisation fair with examples from the committee’s activities. During the year, the Public Trustees Committee had the ambition to develop its innovation capacity. This has been done by developing digital support, changing working methods, taking advantage of employees’ suggestions for change and learning from others. Since 2019, the City Executive Board has been responsible for the project management of the Vinnova project Innovation Platform Sustainable Stockholm (IPHS). The aim of the project is to strengthen the City’s innovation capacity by clarifying the City’s governance and management for innovation as a means of sustainable societal development. The local innovation system will be strengthened by clarifying and highlighting the City’s needs for innovation, ongoing innovation processes and the City’s functions, methods and tools for innovation. The use of digital solutions is increasing, as are various skills development efforts to be able to increase the use of the tools. The Environment and Health Committee has carried out a major 36

The City of Stockholm’s Annual Report 2019

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effort to review the potential for digitalisation, automation and I within the organisation as a whole. Enskede-Årsta-Vantör and Norrmalm District Councils use Viewpoint, which provides children who have been temporarily placed in homes with answers to questions about their placement, which increases the children’s participation. Digi coaches have been trained by project managers within the Reality Lab at Stureby nursing home to spread knowledge about how digital aids can be used together with users. The training is reported to have led to greater participation and interest among both staff and users while there continues to be a need to develop the skills to meet future needs. Södermalm District Council has set up a computer room where new arrivals in the country have the opportunity to use computers and learn how to apply for housing with the support of a housing coordinator and a housing guide. An important part of creating the conditions for strengthening innovation capacity is that the leadership and culture are courageous and permissive because working methods need to change. During the year, the City has worked on change management in various ways. For example, the City’s directors have participated in lectures on change management and the theme of this year’s management seminars has been change management. Within the framework of the work of the Ideas Hub, the participants have received knowledge about change and support in change management. Several of the City’s directors have also participated in innovation management training. Kungsholmen District Council has conducted leadership training to strengthen the ability to lead in change and create a more innovative and permissive working climate. Skärholmen District Council has used design thinking as a method to identify the depart-

An important part of creating the conditions for strengthening innovation capacity is that the leadership and culture are courageous and permissive because working methods need to change.

ments’ biggest challenges from a resident’s perspective. In collaboration with Open lab, design thinking as a methodology, with a focus on customer experience, has been used by the Labour Market Committee in the preparation of tender documents for the procurement of adult education.

The Quality Award

The aim of the City’s Quality Award is to stimulate and encourage operations financed by the City to improve their quality. The award is also an opportunity for the City to highlight and share best practice. The questions in the award provide a basis for developing the operation. They have a clear focus on the benefit for Stockholmers, analysis of results for continuous improvement, and the distribution and use of good examples. This year, 32 units participated in the award. The City’s examiners are responsible for assessing the operations’ contributions. As part of their work, examiners acquire highly-developed skills in operational analysis and assessment. The work also gives them a broad knowledge and understanding of the City’s various operations. Every year, the City Executive Office trains examiners in the evaluation methods used. During 2019, a total of 62 examiners took part in the evaluation work. As well as carrying out their examiner’s assignment with respect to the Quality Award, they have also acted as effective ambassadors for development work within their own operations.

There are a variety of innovation projects in which the City’s committees participate. Below are some of these. f

f f

f f f

REFLOW (City Development Committee) – the City’s physical resource flows, a more in-depth version of Royal Seaport’s cycle model with funding from the Swedish Environmental Protection Agency Local Life (City Development Committee) – develop a Facebook-like platform to facilitate local engagement and a greater sharing economy. The project is financed by Vinnova Connected SRS (City Development Committee) – an IoT (“Internet of Things”) platform for the collection and sharing of data will be tested in Royal Seaport in cooperation with, among others, the City Executive Office. The project is financed by Vinnova Purification of bathing water with UV light in collaboration with KTH (Real Estate Committee) Development of artificial grass where new requirements are implemented in procurements (Real Estate Committee) A technical test bed for real-time response and 5G technology is planned at Stockholms Stadion. Different technology companies will be able to test and develop new products and services in cooperation with relevant needs groups, which are mainly elite athletes, people with disabilities and rehab patients (Sports Committee) Illegal subletting (Skärholmen and Spånga-Tensta district councils).

PHOTO: TOBIAS AXLUND

How the City is governed

Winners of the Quality Award Pre-school category: Pre school Karusellen Reimersholme, private performer. School category: Gubbängsskolan, Education Committee. Social services and support and services for people with disabilities category: Supply Support Unit, Hässelby-Vällingby District Department. Resource Unit, Skärholmen District Department. Commendation: Ordering unit for elderly care services, Norrmalm District Department. For having created constructive and successful development work with an active staff commitment that is out of the ordinary.

Progress – The City of Stockholm’s Award for Innovation This year Progress – the City of Stockholm’s Award for Innovation – was presented in conjunction with the Quality Award. Progress has replaced the Renewal Award and the Digitalisation Award. There were 38 nominations. Progress was awarded to: Zero malnutrition vision, elderly care services department, Enskede- Årsta-Vantör District Department. A special mention was given to: Cooperation team in family law, Södermalm District Department.

St. Julian Prize The St. Julian Prize is the City of Stockholm’s prize to reward work that is performed to include people with disabilities in society. Physical accessibility category: City Museum, City of Stockholm. Accessible Information and Communication category: Hammarby Football Participation category: Mälarhöjdens IK (MIK) Football.

The City of Stockholm’s Annual Report 2019

City Council orientation goals City Council orientation goals

In 2019, the City worked according to the City Council’s three orientation goals: A modern metropolis with opportunities and freedom of choice for all, sustainable growing and dynamic metropolis with high growth and an economically sustainable and innovative metropolis for the future. The orientation goals apply to the entire organisation and provide the framework for the City’s governance of activities during the term of office.

The City of Stockholm’s Annual Report 2019

PHOTO: STOCKHOLM BUSINESS REGION/VICTOR GÅRDSÄTER

All goals for the operational areas include indicators with defined annual targets. The annual targets for the indicators indicate the level to be achieved in the current year and are determined on the basis of the present situation, conditions and level of ambition.

City Council orientation goals

The City Council’s goals for the operational areas provide concrete detail to the orientation goals for the various operations that are run in the City over several years, often the entire term of office. Assessment of the goals should therefore be seen as an assessment of whether the City is on the right track and the extent to which the goal in question was achieved during the year rather than whether the long-term objective of activity has actually been achieved.

For individual-based indicators, outcomes are reported by gender where available. For other indicators, only total outcomes are reported. The assessment of goal fulfilment of the City Council’s operational area goals is based on weighing up the goal’s indicators and the committees’ assessments and analyses of the respective operational area goals. Assessment is made of whether each goal has been met fully, partially or not at all. With full goal fulfilment, development is assessed to move strongly in the right direction. With partial goal fulfilment, development is assessed to move weakly in the right direction. With no goal fulfilment, development is judged to be going in the wrong direction.

The City of Stockholm’s Annual Report 2019

PHOTO: UNSPLASH

A modern metropolis with opportunities andÂ freedom of choice for all

A modern metropolis with opportunities and freedom of choice for all All Stockholmers shall be given the opportunity to support themselves, to be able to realise their dreams and to be included in society. Public spaces shall be designed with security in focus. School development in Stockholm shall be based on scientific basis and the pre-schools shall also maintain a high educational quality. People in need of support shall be able to trust that society captures and supports when needed and everyone should be guaranteed legally sound treatment.

The City of Stockholmâ&#x20AC;&#x2122;s Annual Report 2019

In Stockholm, people are self-sufficient and the path to work and proficiency in Swedish is short Supporting themselves by own work is crucial for people to have the oppor tunity to live independent lives and realise their life dreams. More jobs also create increased tax income for our common welfare. The fact that more people work is primarily a gain for the individual. With a job comes an income and a community that creates independence, freedom and security.

Continued low level of financial assistance

The trend of a reduced need for financial assistance continues from the previous year. Goal fulfilment in financial assistance remains good, and the proportion of people in need of assistance remains below the City Council’s target of 1.6 per cent. The result for 2019 is 1.48 per cent, down from 1.50 per cent in 2018 and 1.53 per cent in 2017. The proportion of children living in families with financial assistance and those in longterm need of financial assistance is also lower than the City Council’s target of 2.8 per cent. The result for 2019 is 2.5 per cent, which represents a reducation from 2.6 per cent in 2018 and 2.7 per cent in 2017.

directed at new arrivals in Sweden who are at the end of the establishment period. Under this scheme, 120 people have received support and more than half of them have moved on to work in the open labour market.

Better results in adult education

To have a completed education to upper secondary level is today considered a prerequisite for being able to establish yourself in the labour market. Adult education is therefore a central part of the City’s work with those groups that for various reasons do not have a job. In 2019, the number of students has increased and study results have improved, especially in higher education preparatory courses, compared to 2018. Adult Education

Operational goal In Stockholm, people are self-sufficient and the path to work and proficiency in Swedish is short. Goal attainment for the year The annual goals for 5 out of 10 of the City Council’s indicators were achieved in full and 5 were achieved in part. 24 out of 30 committees consider that the goal for the City Council’s objectives for the area of activity is fully met and 6 consider that the goal is achieved in part. The committees and company boards have performed the activities they had undertaken in their operational plans. Considering the above, the operational area goal is judged to have been achieved in full.

PHOTO: FREDRIC SANDIN CARLSON

More moving on to work and study

Jobbtorg Stockholm is working to increase the number of people moving on from the activity to becoming self-sufficient. In 2019, the proportion of trainees who have moved on to work and study has increased compared to 2018.

A modern metropolis with opportunities and freedom of choice for all

Adults aged between 30 and 64 have gone on to study to a greater extent than last year and have achieved a better overall result. A large majority of young people aged 18–29 have found a job or started studying after finishing. More Stockholm jobs have been combined with studies, which had a positive impact on the result. More people aged 16–19 and 20–29 who are covered by the outreach missions have been reached and supported.

Pilot to get more new arrivals in Sweden to self-sufficiency

One of the most important aspects of creating functioning integration for new arrivals coming to the city is to improve conditions for establishing themselves in the regular labour market. Through support for studies and work, during the year Jobbtorg Stockholm has carried out a pilot so that more new arrivals at the city’s housing facilities will move on to self-sufficiency. The pilot has been carried out in collaboration with the Swedish Public Employment Service and has been The City of Stockholm’s Annual Report 2019

Stockholm has increased the number of places in higher vocational and combination education, two forms of education that lead to work to a very high degree. There are challenges for grades in basic and higher vocational courses, as well as for progression and interruption in SFI (Swedish for immigrants). To ensure that the provision of adult education and SFI is central both for students and for contributing to the provision of skills. The education and programmes offered shall be of high quality, flexible and accessible. During the year, extensive work was carried out to prepare and perform procurement of education for the coming years. The procurement has focused on the students’ path through their education and how this can be linked together more clearly, without having to change the education provider to the same extent as before.

Indicator

10,662 young people had holiday jobs under the City of Stockholm in 2019.

Integration Pact up and running

The City, in cooperation with industry and relevant authorities, has initiated the Integration Pact, the purpose of which is to improve opportunities for integration and shorten the path to work, the Swedish language and self-sufficiency. Some 100 dialogue meetings have been held with companies and organisations so as to understand their needs, interest

Annual goal

Outcome Total

Women

Men

Goal fulfilment

companies and organisations participated in the first members meeting of the Integration Pact.

and level of engagement with each member, as well as to discuss opportunities for interaction between the City and other members of the Integration Pact. During the year, a first membership meeting was held, which about 160 companies and organisations attended. A large majority of companies that have shown an interest in participating in the Pact have signed agreements during 2019.

Comments

A modern metropolis with opportunities and freedom of choice for all

Percentage of children growing up in families that receive financial assistance

2.8%

2.5%

Percentage of course participants in basic adult education gaining passes on completion of the course

85%

82.6%

84.6%

79.1% Partially

The indicator is only reported by the Labour Market Committee. The results, like previous years, show a difference in results for men and women.

Percentage of course participants in upper secondary adult education, courses in preparation for higher education, gaining passes on completion of the course

74%

73.1%

74.3%

71.4% Partially

The indicator is only reported by the Labour Market Committee. The results, like previous years, show a difference in results for men and women.

Percentage of course participants in upper secondary adult education, vocational training, gaining passes on completion of the course

90%

89.5%

90%

88.7% Partially

The indicator is only reported by the Labour Market Committee. The results, like previous years, show a difference in results for men and women.

Percentage of people receiving financial assistance in relation to the population as a whole

1.6%

1.5%

1.4%

1.6% Fully

Bromma District Council and Hässelby-Vällingby District Council do not achieve their target values. Enskede-Årsta-Vantör and Södermalm District Councils partly achieve their target values. The proportion of men with financial assistance is higher than that of women.

Percentage of adults receiving long-term financial assistance in relation to the adult population as a whole

1.1%

0.9%

0.9% Fully

Bromma District Council and Hässelby-Vällingby District Council do not achieve their target values. Farsta District Council partly achieves its target value.

Number of jobseekers who have obtained Stockholmsjobb employment

1,050

894

456

Number of places provided for holiday jobs

9,000

10,662

Number of places provided for Stockholmsjobb employment

1,050

Number of young people who obtained holiday jobs arranged by the City

9,000

The City of Stockholm’s Annual Report 2019

- Fully

160

Results by gender are not available. Bromma District Council partly achieves its target value.

438 Partially

Bromma, Hässelby-Vällingby, Norrmalm, RinkebyKista, Södermalm and Älvsjö District Councils do not achieve their target values.

- Fully

The Environment and Health Committee does not achieve its target value.

934

- Partially

The City Development Committee, the Environment and Health Committee, the Service Committee and Farsta, Hägersten-Liljeholmen, Hässelby-Vällingby, Kungsholmen and Rinkeby-Kista District Councils do not reach their target values.

9,052

- Fully

Figures by gender are still unavailable from a number of committees.

Stockholm is a safe, secure and well-maintained city to live and stay in Stockholm shall be a safe and secure city for everyone where people’s freedom is not restricted. The City’s efforts to combat crime shall be in close cooperation between the City’s activities as well as with the police and other key players. The City of Stockholm shall work in a structured and purposeful way against violent extremism and learn from other countries’ work and experiences.

The structure and direction of the work

2019 has been marked by intensive work to further develop a structure for the City’s safety and security work. During the year, a new comprehensive collaboration agreement was signed between the City of Stockholm and the Stockholm Police Region. The agreement sets out objectives and priorities and creates a common structure for collaboration both centrally and locally. During the year, the City also developed a proposal for new security and safety programmes. The purpose of the security programme is to guide the City’s activities in performing purposeful crime prevention and security-building work based on current data, surveys, cause analyses and well-considered measures. The safety programme describes, among other things, the City’s work on emergency preparedness, civil defence, protective security and information security, as well as threats and violence against employees. The new collaboration agreement and the proposed security programme and

safety programme will be key parts of the City’s continued efforts to increase the safety and security of Stockholmers and achieve the goal of not having any especially vulnerable areas.

Security investments, site interaction and security guards create a safer city

In 2019, the City Executive Board’s Public Safety Committee decided on more than SEK 89 million to the City’s committees’ work to increase security through so-called security investments. The investments have, for example, enabled setting up cameras, various lighting measures, alarms and initiatives to make pedestrian underpasses and playgrounds safer. The District Councils, together with the City Executive Board, the Transport Committee, the Culture Committee, the City Development Committee, the Urban Planning Committee and the Sports Committee, have focused on increasing security and attrac-

Operational goal Stockholm is a safe, secure and well-maintained city to live and stay in. Goal attainment for the year The annual targets for 5 out of 5 of the City Council’s indicators are achieved in part. 15 out of 31 committees consider that the goal for the City Council’s objectives for the area of activity is fully met, 15 consider that the goal is achieved in part and 1 considers that the goal is not achieved. The committees and company boards have performed the activities they had undertaken in their operational plans. Considering the above, the operational area goal is judged to have been achieved in part in 2019.

tiveness in the city’s outdoor environments through so-called site interaction and site activation. This has been done in cooperation with property owners, business practitioners, the civil society and other actors. The idea of site interaction and site activation is to

A modern metropolis with opportunities and freedom of choice for all

PHOTO: ANDREAS SUNDBOM

The City of Stockholm’s Annual Report 2019

88%

attract more visitors during a greater part of the 24 hour period and by this means security is expected to increase and crime to decrease. The City has made special efforts in three locations: Hässelby Torg, Sergels Torg and Medborgarplatsen. In Norrmalm District Council, Vision Klara has continued to develop and become further strengthened through collaboration with property owners, the civil society and the City’s committees and companies. One area that the work has focused on is to help vulnerable individuals around the Central Station and the City Terminal. The City’s investment in security guards continued during the year and the number of city-wide guards as well as regulated areas, LOV 3 (act (1980:578) has increased. To ensure good quality, the City has worked together with the supplier and the Police Authority following a joint training plan for the security guards.

Continued focus on collaboration and education Active participation in the Stockholm Region Collaboration during the year has contributed to continuous development in crisis and security work in the city, including through joint work on crisis support, a joint focus in the event of a major electricity outage and joint weather-related preparedness planning for the summer months. Several initiatives have been carried out during the year in work against violent extremism (VBE). For example, the City has developed an online training programme in A modern metropolis with opportunities and freedom of choice for all

Indicator

of Stockholmers are satisfied with the urban environment.

which nearly 4,000 of the City’s employees have participated. The relevant committees have updated their action plans and status. A VBE team has been formed at the Social Services Committee aimed at making first contact with individuals who have returned from war-torn areas, with the aim that social services should be given the opportunity to offer interventions. Work on the Järva collaboration has been strengthened by the City Executive Board chairing the collaboration meetings to ensure that the relevant committees and company boards contribute to improving the environment and security in the area. The focus is on developing the key municipal assignments and mobilising and coordinating the City’s activities. The work has focused on identifying what needs to be done to increase security and attractiveness in the two areas of Järva that the police have classified as particularly vulnerable, so that they can be removed from the police list of vulnerable areas.

Stockholm. The Greener Stockholm initiative makes it possible to further develop the city’s green public environment, with special priority on the city’s outskirts. As part of work on site interaction, the City and various actors have worked on security-enhancing, crime prevention and well-being measures at selected locations. During the year, several district councils decided on new park plans. The park plans describe how the local parks can be developed so that they become attractive and safe for everyone to use, as well as how the ecological values of the parks can be strengthened. Most of the district councils’ park management and upkeep is outsourced. During the year, several district councils have prioritised agreement follow-up with contractors to ensure performance and quality. The follow-ups identified some areas for improvement and several district councils state that agreement follow-up will also be a focus area next year.

Attractive and living urban environments

The City has continued to develop the urban space according to the concept of Living

Annual target

Outcome Total

Women

Men

Goal fulfilment

Comments

Percentage of Stockholmers who feel secure in the district where they live

77%

70%

69%

72%

Partially Decrease of four percentage points compared with 2018. With the City having revised central government documents, there is a clear direction of will for the City’s security work. The focus for the City’s committees in the coming year will be to implement and work on the basis of the comprehensive cooperation agreement and the safety and security programme.

Stockholmers’ satisfaction with cleanliness and tidiness

71%

57%

58%

56%

Partially Decrease of seven percentage points compared with 2018. The City’s District Councils must continue to prioritise agreement follow-up with contractors to ensure performance and quality.

Stockholmers’ satisfaction with the care of parks and green spaces

71%

60%

61%

60%

Partially Decrease of five percentage points compared with 2018. The City’s District Councils must continue to prioritise agreement follow-up with contractors to ensure performance and quality.

Stockholmers’ satisfaction with the urban environment

88%

82%

84%

80%

Partially The City’s District Councils must continue to prioritise agreement follow-up with contractors to ensure performance and quality.

Perceived road safety for pedestrians and cyclists

66%

61%

62%

61%

Partially The Transport Committee needs to continue to work strategically to ensure that streets, squares, pedestrian and cycle paths and tunnels are safe and secure.

The City of Stockholm’s Annual Report 2019

In Stockholm, children reach their full potential as Stockholm’s schools and pre-schools are the best in Sweden Equality in pre-schools and schools is a prerequisite for all children and pupils to have the opportunity to succeed. Pre-school and school create conditions and opportunities for Stockholm’s children and young people. All children in Stockholm’s pre-schools and schools shall have a knowledge development that creates the conditions for a good future and enables them to make their own life choices regardless of where in the city they live or what background they have.

Pre-school

The pre-school place guarantee has been fulfilled during the year. In 2019, nearly 55,000 children went to pre-school in Stockholm, of which about 60 per cent were in municipal pre-schools and 40 per cent in independent pre-schools. The number of children in municipal pre-school education has increased slightly compared to 2018, while the number of children in independent pre-schools has decreased slightly. During the year, the district councils worked to ensure an equal pre-school of high educational quality. The Education Committee has worked closely with the district councils

on issues that are common to all the city’s pre-schools, such as digital initiatives and the provision of competence. The goal for the number of children per group is met for the city as a whole and for the majority of the district councils. The outcome, 15 children per group, is an improvement on the previous year. For other indicators in preschool, the goal is partly achieved. In order to increase the proportion of pre-school teachers, district councils accept higher education students during their placement, offer mentoring for newly graduated pre-school teachers and give child minders the opportunity to train as pre-school teachers.

Operational goal In Stockholm, children reach their full potential as Stockholm’s schools and preschools are the best in Sweden. Goal attainment for the year The annual goals for 4 out of 15 of the City Council’s indicators were achieved in full and 11 were achieved in part. 17 committees out of 25 report that the target for this operational area was met in full and 8 committees report that the target was met in part. The Education Committee and seven District Councils estimate that the goal is achieved in part. The committees and company boards have mainly performed the activities they had undertaken in their operational plans. Considering the above, the operational area goal is judged to have been achieved in part in 2019.

A modern metropolis with opportunities and freedom of choice for all

PHOTO: ANNA ÅBERG

The City of Stockholm’s Annual Report 2019

A further step in becoming a more attractive employer is that an action plan aimed at improving the working situation of child minders and preschool teachers has been developed in collaboration between the Education Committee and the district councils, according to plan. The district councils shall use the action plan as a support in their further work and the Education Administration is responsible for monitoring the effects of the action plan. The Education Committee works city-wide on the systematic quality activities in the city’s pre-schools. This is done, among other things, in dialogue with the district councils based on the quality reports of the municipal pre-schools. This year’s pre-school report shows a consensus in the main development areas, namely competence provision, compe-

“

A further step in becoming a more attractive employer is that an action plan aimed at improving the working situation of child minders and preschool teachers has been developed.

tence development and developing a basis for being able to assess the goal fulfilment of the education in relation to the objectives of the curriculum.

A modern metropolis with opportunities and freedom of choice for all

The enrolment rate for 2–5 year olds in preschool education, regardless of management, is 94.3 per cent excluding children with temporary personal ID numbers. If all children are included, the outcome is 94.8 per cent, which is a slight increase compared to the previous year when the outcome was 94.6 per cent with all children included. Work to increase enrolment rates continues,including through introductory pre-schools and collaboration between open pre-school and pre-school.

Primary, secondary and special needs education, out of school hours activities, leisure club and upper secondary and special needs upper secondary school

Goal fulfilment has increased in some respects in comparison between the academic years 2018/2019 and 2017/2018, although the City Council’s goals have not been fully met. Some improvements have been made in marks in year 9 and in upper secondary school. However, the marks in year 6 have deteriorated and perceived security has decreased in year 8.

The City of Stockholm’s Annual Report 2019

School results

In compulsory school year 3, the result in the national test in Swedish/Swedish as a second language has improved to 92 per cent from 91 per cent in 2018. The improved result means that a higher proportion of students have passed the interim tests. In the national maths test, however, results have deteriorated to 91 per cent from 93 per cent pass marks in 2018. The results in Swedish/Swedish as a second language have been relatively constant in recent years with an increase this year. The results in mathematics have varied more between years without any clear trend,

as is the case at national level, which may indicate that the difficulty of the test varies from year to year. In year 6, the proportion of those who have achieved the knowledge requirements in all subjects has decreased from 78.5 per cent to 77.8 per cent. The decrease is greater among girls than among boys. The proportion qualifying for vocational programmes has decreased marginally. One explanation for the declining results in recent years may be that the proportion of pupils who are newly arrived in Sweden has increased and

that pupils in the lower age groups often go straight into ordinary classes. This can make it difficult to achieve the knowledge requirements, as it takes time to master Swedish language skills fully. Figure 1 shows the development of pupils’ marks in year 6. The comparison reveals that the marks awarded have deteriorated over the past three years, with the exception of average merit rating, which improved this year. In year 9, marks have improved compared to 2018. The proportion of pupils passing all

subjects and the average merit rating have clearly increased. The proportion eligible for upper secondary school has increased by 0.5 percentage points to 87.4 per cent when all pupils are included. Figure 1 shows the development of pupils’ marks in year 9. The comparison reveals that the marks have improved over the last three years.

PHOTO: ANNA ÅBERG

Girls have higher scores than boys in terms of average merit rating and the proportion of pupils who have passed all subjects. Girls’ and boys’ results have increased in both of these marks, although, boys’ performance has increased more and the gender gap has narrowed in recent years. For qualification for upper secondary school (vocational programmes), this year there is only a marginal difference between girls and boys. Overall, the difference between girls’ and boys’ results has not been so small since 2011.

Figure 1

The merit rating is increasing for all school groupings based on socio-economic condi-

“

The proportion of pupils passing all subjects and the average merit rating have clearly increased.

tions in 2019, and in some cases the increase is quite significant. The differences in performance between pupils year 9 of the city’s schools, which have increased over a tenyear period, decreased sharply in 2017–2018 but have now increased again. One reason for the greatly reduced differences in 2017 and 2018 is that the distribution of newly arrived pupils in schools changed, with schools with favourable socio-economic conditions (which usually also have higher results)

Marks achieved in Stockholm City schools, all pupils

2015

2016

2017

2018

2019

Percentage qualified for vocational programmes (%)*

88.6

89.0

87.6

86.8

86.6

Percentage that achieved the knowledge requirements in all subjects (%)

82.1

82.4

81.5

78.5

77.8

Average merit rating (16 subjects)

220

224

223

228

Percentage qualified for vocational programmes (%)

85.3

82.4

84.7

86.9

87.4

Percentage that achieved the knowledge requirements in all subjects (%)

77.9

74.4

78.4

79.2

80.5

Average merit rating (17 subjects)

240

239

242

246

250

Year 6

Year 9

A modern metropolis with opportunities and freedom of choice for all

*The proportion of pupils eligible for vocational programmes in year 6 is calculated in the same way as in year 9, but the pupils are not formally eligible for a vocational programme.

Figure 2

Socio-economic index

Percentage qualified for vocational programmes 2017 2018 2019

Percentage that achieved the knowledge requirements in all subjects 2017 2018 2019

Average merit rating (17 subjects) 2017 2018 2019

Quartile 1 lowest index

91.8

93.0

94.3

88.2

88.4

91.2

266

265

272

Quartile 2

89.1

90.2

92.8

84.5

83.9

86.0

251

252

259

Quartile 3

82.6

79.8

78.4

75.0

70.9

70.4

231

228

Quartile 4 highest index

66.1

73.8

70.7

52.5

57.2

59.6

193

209

211

Marks achieved, year 9, 2017-2019 by school’s socio-economic index (quartiles), average of school results (unweighted average). Source: Education Committee, City of Stockholm

The City of Stockholm’s Annual Report 2019

85%

receiving a higher proportion of new arrivals in Sweden than before. Figure 2 shows how the results between different schools for year 9 vary according to socio-economic conditions. The outcomes are calculated as an average for the schools and do not take into account the number of pupils attending each school. In year 9 of compulsory special needs school, 24 pupils studied the school’s subject area and 59 pupils took subjects. 52 of those who read subjects chose to be given a mark. In compulsory special needs school, marks can only be given to pupils who study subjects and request to be given a mark. The number of marks given in the different subjects varies this year between 43 and 46. The Education Administration has had a special focus on the development of compulsory special needs schools in the autumn results dialogues. In upper secondary school, the proportion of students who have completed their education within three years has increased from 65 per cent to 67 per cent. For the first time, the City has a higher proportion of students with diplomas after three years (66 per cent) than the country as a whole. The proportion of students with diplomas (includes only higher education and vocational preparatory programmes) within three years has also increased,from 77 per cent to 79 per cent. For students with completed studies, as defined by the National Agency for Education, the proportion with diplomas increased to 92.8 per cent, an improvement of one percentage point compared to last year. A modern metropolis with opportunities and freedom of choice for all

This year, 57 special needs upper secondary school diplomas were issued from the city’s schools, including 36 on national programmes and 21 on individual programmes. National programmes have a higher proportion of boys than girls who have received special needs upper secondary school diplomas. The most common mark in the national programmes is C. Of the 81 students admitted to special needs upper secondary school in 2019, 75 students were admitted to their first choice, which corresponds to about 93 per cent.

Security and study atmosphere

The Education Committee’s reporting shows that the results regarding security and study atmosphere in the City’s student and parent surveys remain unchanged or have fallen compared to last year. In compulsory school years 2 and 5 and in upper secondary school year 2, the results remained unchanged since 2018. The proportion of those who feel safe and secure in school in year 8 has fallen by three percentage points to 75 per cent compared to 48

The City of Stockholm’s Annual Report 2019

of all parents with children in the City of Stockholm’s pre-schools are satisfied with the operation

2018, according to the results of the City’s user survey. Perceived security has fallen mainly among girls, from 76 per cent to 73 per cent. Boys’ perceived security has decreased slightly, from 81 per cent to 80 per cent. See Figure 3.

“

In this year’s pupil survey, only 44 per cent of year 8 pupils agree with the statement that they can work in peace and quiet in lessons. In year 5, 57 per cent of pupils agree with the statement and in year 2, 67 per cent. In view of the above, the Education Committee has carried out a thematic evaluation of the work of 23 compulsory schools on security and study atmosphere. The evaluation made use of visits, interviews and documentation studies. The evaluation reveals, among other things, that teacher leadership and the structure of teaching are a greater and more decisive factor for peaceful study than the pupil group in question. Pupils suggest that good relations between teachers and

Figure 3

Pupils suggest that good relations between teachers and pupils have a positive impact on learning and peaceful study.

pupils have a positive impact on learning and peaceful study. The results form the basis for the Education Committee’s continued work. In 2019, some 20 compulsory schools have worked on the violence prevention programmes Mentors in Violence Prevention (MVP) and Acting Together. A total of 160 staff from schools and district councils were trained during the year to be able to lead lessons with violence prevention. Nine new schools have started to work on violence prevention during the year and three new district councils have been involved in the work. In addition, about ten schools have gained knowledge of the programmes. One upper secondary school and one special needs upper secondary school also work with MVP.

Percentage of pupils who feel safe at school 2017

2018

2019

Year 2

girls

boys

Year 5

girls

boys

Year 8

girls

boys

girls

boys

Upper secondary school

Footnote: Percentage of pupils who feel safe at school, 2017–2019

PHOTO: MASCOT/FOLIO

Indicator

Annual target

Outcome Total

Women

Men

Goal fulfilment

Comments

Pre-school Pre-school teachers as a percentage of the total number of employees

41%

37.6%

35.7%

1.9% Partially

3/14 District Councils fulfil the goal completely, 10/14 District Councils fulfil the goal in part, 1 District Council does not fulfil the goal.

- Fully

10/14 District Councils fulfil the goal completely, 4/14 District Councils fulfil the goal in part.

Number of pre-school children per employee

4.9

5.1

- Partially

4/14 District Councils fulfil the goal completely, 10/14 District Councils fulfil the goal in part.

Percentage of satisfied parents of children in pre-school

90%

85%

- Partially 1/14 District Councils fulfil the goal completely, 13/14 District Councils fulfil the goal in part.

Quality indicator – Self-assessment based on curriculum assignments

3.8

3.5

- Partially

Percentage of pupils who have reached the requirement level of the national test in Swedish/ Swedish as a second language in year 3

92%

94%

89% Fully

The outcome has improved since 2018 (91%).

Percentage of pupils who have reached the requirement level of the national test in mathematics in year 3

94%

91%

92%

91% Partially

Outcomes have deteriorated since 2018 (93%) and have varied between the years. *

Percentage of pupils in year 6 who achieved the knowledge requirement in all subjects

84%

77.8%

79.9%

75.9% Partially

The outcome has fallen in recent years and has a downward trend. One explanation may be that the proportion of new arrivals in Sweden has increased. Pupils in the lower age groups often go straight into normal classes, before they master the Swedish language.

Percentage of pupils in year 9 who achieved the knowledge requirement in all subjects

80%

80.5%

81.5%

79.6% Fully

Improvement compared to 2018, mainly for boys.

Percentage of pupils who have qualified for national programmes, excluding recent immigrants and pupils with an unknown background

94%

91.4%

91.1%

91.8% Partially

The outcome has deteriorated from 2018 (92.1%).

Percentage of upper secondary students who have completed the course with an examination within three years

77%

78.7%

Percentage of pupils in year 2 who feel safe at school

90%

84%

84% Partially

The overall outcome remains unchanged since 2018.*

Percentage of pupils in year 5 who feel safe at school

90%

78%

75%

82% Partially

The overall outcome remains unchanged since 2018.*

Percentage of pupils in year 8 who feel safe at school

87%

75%

73%

80% Partially

The perceived safety in year 8 decreases mainly for girls.

Percentage of upper secondary pupils who feel safe at school

90%

86%

84%

89% Partially

Unchanged outcome overall, but a decrease in perceived safety can be seen for girls.

Number of children per group

3/14 District Councils fulfil the goal completely, 11/14 District Councils fulfil the goal in part.

Schools

New measurement method in 2019. National programmes only.There is also an improvement with the previous definition, from 65% to 67%.

* The indicator was not followed by KF 2018. However, there is an outcome for several years back because the Education Committee has followed the outcome.

The City of Stockholm’s Annual Report 2019

A modern metropolis with opportunities and freedom of choice for all

- Fully

In Stockholm, people in need of support receive help in good time, characterised by high-quality, security and self-determination Social services shall stand strong to meet people who need support and help. People shall be able to trust that society captures and supports when needed and everyone should be guaranteed legally sound treatment. Social services shall pay attention to all children and adults who may need their help and the City shall offer modern, legally sound and evidence-based social services that can always meet the current need for social intervention.

Collaboration, early intervention and a strengthened children’s rights perspective

School is the main protection factor for young people’s lives and future life chances. During the year, the City prioritised and developed cooperation between school, pre-school, social services and the police and increased cooperation between home and school to identify children at risk early, follow up on reports of concern and stabilise

The social investment project New Ways, focusing on children living in families with addiction, shows that contact between participating pre-schools and social services is increasing and more parents and children are taking part in support efforts. A large part of the preventive work is carried out in collaboration with the region’s child and

PHOTO: LIESELOTTE VAN DER MEIJS

A modern metropolis with opportunities and freedom of choice for all

Work to strengthen and integrate a children’s rights perspective in all areas of social services has continued throughout the year and the City’s children’s rights coordinator plays an important role in this work. The City has continued to develop preventive work and early intervention for children and young people, including in parenting support, violence in close relationships and work with mental illness. Social action groups and social school teams are examples of collaborative work with the aim of providing early and coordinated support.

children and young people’s schooling. Examples of these are access to additional adaptations of teaching and special support, access to pupil health including study and career guidance, short strategic family treatment, individual support and treatment contact for young people at risk, as well as the SAMS model, which deals with collaboration for unbroken schooling for placed children and young people. Through social school teams, a special focus has been on increasing school attendance and better school results in selected compulsory schools in the outer city. In 2020, this work will be further strengthened in the form of a school social worker who will work with years 8 and 9.

Operational goal In Stockholm, people in need of support receive help in good time, characterised by high-quality, security and self- determination. Goal fulfilment for the year The annual goals for 8 out of 13 of the City Council’s indicators were achieved in full, 4 were achieved in part and 1 was not achieved at all. 29 out of 30 committees consider that the goal for the City Council’s objectives for the area of activity is fully met and one considers that the goal is achieved in part. The committees and company boards have performed the activities they had undertaken in their operational plans. Considering the above, the operational area goal is judged to have been achieved in full in 2019.

maternity health centres and child and adolescent psychiatry. During the year, the City has developed parental support programs, parental counselling and family treatment in cooperation with the Stockholm region. As part of the social investment project Stronger early support in collaboration (STIS), the home visit programme for new parents in collaboration with Region Stockholm has been expanded. The follow-up shows good results and the number of participating parents in parental support programmes has increased.

Violence in close relationships and honour-related violence and oppression The City has continued to develop work against violence in close relationships and honour-related violence and oppression in order for the work to be coordinated, evidence-based and of high quality. A particular focus has been on violent prevention efforts, support for victims of violence and work with perpetrators of violence. The City’s relational violence centre plays an important role in this work. The City has identified compensatory measures in the event of drop-out from pre school and school; Mentors in Violence 50

The City of Stockholm’s Annual Report 2019

Prevention (MVP) and Acting Together have gained a wider reach in the city and protection and support for children and young people after police questioning where there is suspicion that they have been victims of crime has been strengthened by the establishment of a team at Barnahus.

Accessibility and participation of people with disabilities and mental ill-health

The City of Stockholm has high goals to guarantee everyone who lives and works in Stockholm full participation in society. The City has continued its efforts to increase the accessibility and participation of people with disabilities in the community in accordance with the Accessibility and Participation Programme for people with disabilities. Among other things, the City has worked on accessibility measures in both indoor and outdoor environments, increased the use of digital aids to increase the availability of information and communication

Indicator

for the target group and invested in health promotion and support for the target group to be able to approach work and studies. The work aimed at the social psychiatry target group has focused on increased participation, collaboration with psychiatry and development of interventions with a focus on opportunities for reaching the labour market. The City has continued to implement PEER support, which means that people with their own experience of mental illness are employed in the social psychiatry activities. In order to ensure that care for people in psychiatric in-patient care remains safe and secure after discharge, the City has continued to work on intensive function-enhancing efforts after discharge from in-patient care.

Work against homelessness and physical and mental ill-health Work against homelessness is a priority in the City of Stockholm and new measures

Annual target

Outcome Total

Women

Men

Goal fulfilment

Percentage of children and young people requiring intervention under individual and family care who do not need to have their cases reopened within 12 months of the end of the intervention

84%

86%

85%

Percentage of children and young people deemed to have protection needs who have been placed in safe conditions

100%

99.3%

93.4%

99%

Percentage of individuals who do better on their own in social psychiatry

25%

27%

29%

Fully

Percentage of intervention(s) concluded according to plan in adult substance abuse

42%

51%

59%

49%

Fully

Percentage of people in social psychiatry who were satisfied with the manner in which their needs for support were assessed

80%

75%

76%

Increase

91%

92%

91%

Fully

70%

74%

73%

76%

Fully

3.4%

Percentage of users in care for people with disabil- Increase ities who do not experience discrimination (support and service for people with disabilities)

75%

73%

78%

Percentage of satisfied users – Disability (support and service for people with disabilities)

80%

82%

81%

85%

Fully

Percentage of people with disabilities who feel that they can influence how the help is provided (support and service for people with disabilities)

78%

80%

Fully

Percentage of people with disabilities who feel that they are well-treated by the City’s personnel (support and service for people with disabilities)

90%

91%

93%

Fully

The users’ perception of security – special needs housing, adults and children (support and service for people with disabilities)

92%

78%

76%

82%

Proportion of young people receiving victim support and experiencing a positive change in their life situation Percentage of young people who have received youth services in the City’s activities

Comments

Fully

Partially The analysis of the breakdowns shows that in some cases the acute accommodation has not been sufficient for the needs of young people and also that the specific family homes have not had sufficient resources to meet the needs of the children. The City continues to develop recruitment of resourceful family homes and strengthen them with efforts to prevent unsafe placements and breakdowns.

Partially Staff turnover, difficulties in creating participation in the target group and low response rates are part of the explanation for the deteriorating results.

Not 88 young people have been discharged during the achieved period, 73 boys and 15 girls. Three boys have received a place in the City’s activities. Partially The results are not quite comparable between the years; the City has put in place a new method for user surveys and expanded the range of interventions included in the survey. The City needs to work on raising the response rate.

Partially The result is not quite comparable between the years; the City has put in place a new method for user surveys and expanded the range of group accommodation, which weighs heavily when the user stays there for many hours.

The City of Stockholm’s Annual Report 2019

A modern metropolis with opportunities and freedom of choice for all

Percentage of users in social psychiatry who do not feel discriminated against

are being taken continuously, including on the basis that the group of homeless people is changing. The City offers evidence-based addiction treatment, advice on budget and debt issues, as well as support for homelessness or the risk of eviction. Trial and training apartments and the housing programme Bostad Först are an important tool in the work to support people out of homelessness. During the year, cooperation between social services, housing companies and housing services has developed for families with children in uncertain housing conditions, victims of violence and in eviction prevention. Efforts to develop support for people aged 65 or over, with or without addiction, living in homelessness or at risk of becoming homeless have continued. Success factors for the work have been identified, among other things, in a joint clinic for the elderly, financial assistance, addiction and social psychiatry.

In Stockholm, older people have a life characterised by high quality, security and self-determination The City of Stockholm shall be an elderly-friendly city. As an older person, you should be able to live your life with self-determination, respect and dignity, even much later in life. Stockholm’s care for the elderly shall be characterised by quality and freedom of choice and shall be a leader in competence in dementia and specialist geriatric competence.

Security, self-determination and high-quality care for the elderly

The City continues to work to increase the proportion of satisfied and safe recipients of elderly care when the City Council’s goals are not reached. The City’s strategy for an elderly-friendly city forms the basis of efforts to create an accessible and inclusive city with an environment that promotes an active life, throughout life. The work model Safe Reception in the Home has been expanded and is available throughout the city to ensure a safe return from in-patient care. Cooperation with the region is important to ensure the future of care for the elderly, for example during the year the City has participated in Region Stockholm’s pilot project Loneliness

mission for the elderly and loneliness. The project aims to enable persons identified by primary care as being involuntarily alone to be passed on to the city’s meeting points and/ or non-profit activities. During the year, the employees of elderly care continued to develop competence, working methods and treatment of people with dementia according to the education model Starred and more activities have received a Silviahem certification. The aim of the training is to strengthen the employee’s competence in areas such as ageing, dementia, treatment and communication. The educational model Starred has been developed by the Swedish Dementia Centre.

Operational goal In Stockholm, older people have a life characterised by high quality, security and self-determination. Goal fulfilment for the year The annual goals for 1 out of 10 of the City Council’s indicators were achieved in full and 9 were achieved in part. 18 out of 25 committees consider that the goal for the City Council’s objectives for the area of activity is fully met and 7 consider that the goal is achieved in part. The committees and company boards have mainly performed the activities they had undertaken in their operational plans. Considering the above, the operational area goal is judged to have been achieved in part in 2019.

PHOTO: SARA MAC KEY

A modern metropolis with opportunities and freedom of choice for all 52

The City of Stockholm’s Annual Report 2019

Housing plan 2020 with a view to 2040 shows that the need for care homes in the city will increase within a few years and it is important that the City works to ensure that a diversity of actors are given the opportunity to contribute to the expansion. The adjustment from the previous 60 per cent municipal and 40 per cent private ownership of nursing homes to 50 per cent each is expected to relieve the City’s investment expenses for future expansion.

Innovative and creative care for the elderly

Welfare technology can contribute to a meaningful life for the elderly. Collaboration with Stockholm Digital Care has continued to drive the development of welfare technology in the City’s care homes. Many employees in the care of the elderly have participated in the project Ideas Hub to improve the conditions for innovation and creative ideas. The reality lab at Stureby care home has provided

Indicator

space for students, researchers and others with innovative ideas to collaborate for more efficient and activity-enhancing elderly care. By making room for creative ideas, new tools are created that in turn provide increased security, freedom of choice and opportunities for activity for the elderly. In the City’s operations, there are, for example, rocking chairs specially adapted for people with dementia, digital activity games that stimulate cognitive ability and technology to be able to cycle in a digital environment.

The Act on Discharge from In-patient Health Care

The new act on discharge from in-patient care provides for closer cooperation between the City and primary and in-patient care. In order to ensure that care for people in in-patient healthcare remains safe and secure after discharge, the City continues to work on intensive function-enhancing efforts after discharge from in-patient care. It is important to

Annual target

Outcome Total

Women

Men

Goal fulfilment

continue to apply the law’s requirements for early planning for discharge, permanent care contact and coordinated individual planning by the parties responsible for post-discharge activities.

Equal care for the elderly

In 2019, it has been possible to produce outcomes for women and men on nine out of ten indicators. What can be gleaned from a gender perspective is that there are marginal differences between women and men’s experiences of care for the elderly. The meal situation and the experience of being able to influence how help is carried out in nursing homes are the indicators that differ slightly, when women experience it more positively than men.

Comments

70%

66%

68%

63% Partially

The outcome is at the same level as in 2018. Mealtimes are a priority development area for the organisation. A new food and meal policy has been developed and there will be an increased focus on improving food in the coming years.

Proportion of people living in nursing and care homes who perceive that there are good opportunities to get outdoors

57%

52%

53%

50% Partially

Decrease of one percentage point compared with 2018. Reasons for the result may be that being outdoors is not based on individual wishes in the implementation plan or that prepared information material of the nursing and care homes is inadequate.

Percentage of care recipients who perceive that they can influence how help is provided in home care

85%

83%

83% Partially

The City’s work on the assessment period and clarification of the contact staff and their tasks are under continued development and an important part of improving the result.

Percentage of care recipients who perceive that they can influence how help is provided in nursing and care homes

76%

75%

76%

71% Partially

The City’s work on the assessment period and clarification of the contact staff and their tasks are under continued development and an important part of improving the result.

Percentage of secure care recipients in home care

81%

80%

79%

81% Partially

Information material, implementation plans and improved communication with the relatives, who are often the ones who respond to the user survey on which the indicator outcome is based, need to be improved.

Percentage of secure care recipients in nursing and care homes

87%

84%

83% Partially

Percentage of satisfied care recipients in day activities

92%

93%

90% Fully

Percentage of satisfied care recipients in home care

84%

83%

84% Partially

Percentage of satisfied care recipients in nursing and care homes

81%

79%

78% Partially

11.8

- Partially

Number of people that a home care recipient with Maximum at least two visits a day meets over a 14 day period 10 people

Outcome in 2018 was 11.7. The City is working to increase staff continuity by, among other things, improving scheduling, implementation plans and having a higher level of permanent employees.

The City of Stockholm’s Annual Report 2019

A modern metropolis with opportunities and freedom of choice for all

Proportion of people living in nursing and care homes who perceive that mealtimes are a pleasant time of the day

PHOTO: JOHAN PONTÉN

A sustainable growing and dynamic metropolis with high growth

A sustainable growing and dynamic metropolis with high growth Stockholm shall be a city where the conditions for running and developing companies are favourable. The city shall be accommodating, impartial and efficient in its dealings with both small and large companies. More people shall be offered good opportunities to start a business and benefit from their entrepreneurship. All Stockholm’s districts will be developed with a mix of housing, workplaces, shops, nature, culture, schools and pre-schools. The work to build Stockholm attractively, sustainably and densely continues. As Stockholm grows, public transport, pedestrian and cycle paths and streets must also be expanded so that people can travel quickly and smoothly throughout the region. Stockholm shall be a leading, climate smart and attractive event and experience city with a cultural offering where there is something for everyone. Stockholm’s climate and environment work shall set an example for other cities. The City of Stockholm’s environmental work shall be carried out in close collaboration with residents, industry, academia, the civil society and authorities. The overall assessment is that this orientation goal was achieved in full during the year. This assessment is based on the fact that of the total of five underlying targets, three were achieved in full and two were achieved in part.

The City of Stockholm’s Annual Report 2019

Stockholm has Sweden’s best business environment and internationally competitive business Stockholm shall have Sweden’s best business climate by 2025. The conditions for starting and running a business shall be developed and the City shall be accommodating, impartial and effective in contacts with the business community. The dialogue between businesses and the City shall be improved and companies shall have accessible and effective contact routes with the City. Stockholm shall offer good opportunities for more people to start a business and benefit from their entrepreneurship.

Newly registered companies are increasing

During the year, 23,554 new businesses were started in the county, an increase of 8.2 per cent compared to 2018. The annual target of 25,000 start-ups is thus partially achieved. A declining national economy is a factor that affects the outcome.

Stockholm shall be the most attractive city for domestic and international companies to establish themselves in

The ambition of the City’s work for business is that Stockholm shall have Sweden’s best business climate by 2025 and an internationally competitive business community. The City’s actions towards businesses are important for businesses’ ability to grow while the City depends on the ability of the business community to create jobs. The City’s organisation and working methods shall

promote business and an understanding of the conditions for and needs of business shall be high in the City’s priorities. A steering group consisting of heads of administration and companies from the relevant committees and company boards has been set up and is leading the development of the City’s work for business. To meet business needs for the right skills, various arenas and platforms need to be in place between the City and the business community. A Mayor’s Advisory Board (MAB) has been set up to work with the business community to promote collaboration and find solutions to common challenges. The business perspective shall permeate the City’s way of working, where awareness of everyone’s contribution and responsibility is clear. The City’s employees shall work with a business perspective regardless of function

Operational goal Stockholm has Sweden’s best business environment and internationally competitive business. Goal fulfilment for the year The annual targets for seven out of nine of the City Council’s indicators are forecast to be achieved in full, one was achieved in part and one was not achieved. 25 out of 29 committees consider that the City Council’s goal for the area of activity is fully met and 4 consider that the goal is achieved in part. For the seven of the city councils that are forecast to be achieved in full there are no outcomes, since the results from the City’s Customer Satisfaction Index (CSI) were not ready for the annual report. The committees and company boards have mainly performed the activities they had undertaken in their operational plans. Considering the above, the operational area goal is judged to have been achieved in full in 2019.

A sustainable growing and dynamic metropolis with high growth

PHOTO: LENNART JOHANSSON

The City of Stockholm’s Annual Report 2019

23,554

in the City and shall have an accommodating and problem-solving attitude to companies’ establishment and development.

new companies were started in the county in 2019. Compared with 2018, this is an increase of

A business policy that sets the direction of the City’s work for business

A proposal for a business policy has been developed in 2019 and has been submitted. The business policy aims to establish a common direction for the City’s work for business. By establishing a common platform, clarifying the division of responsibilities and improving the conditions for collaboration in the city, the business policy is a strategic contribution to the development and strengthening of the business environment. In the draft business policy, a number of focus areas have been defined where the City needs to strengthen its work for business. The focus areas are stimulate growth and enterprise, improve service, accessibility and the exercise of authority, create more attractive environments and better navigability and increase access to a skilled workforce with relevant competence.

The City is working towards an improved business environment

The City is well placed to improve the local business environment ,where the exercise of authority is an important part. The most common contact between business and the City is in connection with licensing and supervisory issues. In order to improve the City’s service and develop the exercise of authority, several fora have been set up and a number of activities have been carried out.

A sustainable growing and dynamic metropolis with high growth

The City’s municipal service for permits and supervision to companies is measured in the annual CSI (Customer Satisfaction Index) survey. The preliminary results for

2019 show that the City’s overall result is 74, which is the same result as the previous year. In order to improve the City’s exercise of authority, action plans have been developed by those responsible for each area of authority. An internal collaboration group with those responsible for each area of authority has been set up. The collaboration group aims to strengthen internal collaboration and coordinate the City’s exercise of authority based on a good balance of service, legal security and efficiency.

The objective for the City is that all areas of authority shall have “high” in the rating scale, i.e. that the CSI total shall be over 70. The development of the City’s exercise of authority is a key part of the work for business, where service factors such as accessibility, information, legal security, competence and treatment are continuously reviewed.

In order to create a clear process and organisation for companies that wish to establish themselves or be involved in the development of Stockholm, the City has started work on service chains during the year. The project is a strategic tool in the work to achieve defined goals in the City’s work for business.

The City aims to increase collaboration with external players in the market who wish to invest in infrastructure, housing and commu-

Annual target

Total Goal outcome fulfilment

Number of new business start-ups

24,000

23,554 Partially

Growth in the private sector in the City of Stockholm (total payroll)

4.0%

Business sector satisfaction in contacts with the City as an authority

Companies’ satisfaction with treatment by the City

Companies’ satisfaction with efficiency of the City

Companies’ satisfaction with information from the City

Companies’ satisfaction with competence of the City

Companies’ satisfaction with legal security from the City

Companies’ satisfaction with accessibility of the City

The City of Stockholm’s Annual Report 2019

nity properties. The great potential benefits of external collaboration include reducing the City’s level of investment and funding needs, as well as more efficient implementation capabilities. In order to facilitate for more external providers of municipal services that wish to establish themselves in the city, there must be established contact paths.

A clear process for companies that want to be involved in the development of Stockholm

Indicator

“

The City is well placed to improve the local business environment ,where the exercise of authority is an important part.

2.7% Not achieved

Comments

Affected by a national economic decline. The target is affected by economic activity, the number of taxpayers in Stockholm etc. Preliminary result is 74. Final results will be reported on 22/4/2020.

Stockholm is built attractively and densely, with mixed functions based on the different needs of people and businesses Stockholm will be built attractively, sustainably and densely, with a mix of housing, workplaces, shops, nature, culture and schools. By 2025, 70,000 climate-smart homes shall be built, with a wide range of housing forms and more cost-effectively built housing. A balance between rental units, ownership rights and tenant-owners rights shall be sought in all parts of the city.

Planning for 10,000 homes a year to be built

The 2019 budget introduced a new intermediate target for building homes. In 2019– 2025, 70,000 homes shall be built, a building rate of 10,000 homes per year. During the year, the City’s committees worked together towards achieving this level. A total of 4,805 homes were started in 2019, which is on a par with 2018. However, the annual target was not reached. As in 2018, 2019 was marked by a weak market situation for newly built tenant-owner homes in particular, which has presented a challenge in terms of goal fulfilment for both building starts and planning processes. The number of homes in approved/adopted detailed plans was 5,322. This represents a reduction of 24 per cent compared with 2018. Extended planning processes, as a result of revised projects, and reduced pressure from building actors to complete the detailed plans are factors that influenced the outcome.

A positive trend is that the number of homes for which land has been allocated increased compared to 2018. A total of 8,479 homes for which land has been allocated represent an increase of 32 per cent. During the year, 6,044 homes were completed, which is in line with the last two years. The most completed homes can be found in the districts of Södra Hammarbyhamnen, Liljeholmen, Västra Matteus(Hagastaden) and Solberga, with just over 500 completed homes in each district. The long-term goal for building homes in the City of Stockholm is to build 140,000 homes between 2010 and 2030. Since 2010, there have been just over 55,000 home building starts.

Operational goal Stockholm is built attractively and densely, with mixed functions based on the different needs of people and businesses. Goal fulfilment for the year The annual goals for 1 out of 11 of the City Council’s indicators were achieved in full, 2 were achieved in part and 8 were not achieved at all. 23 out of 27 committees consider that the City Council’s goal for the area of activity is fully met and 4 committees consider that the goal is achieved in part. The committees and company boards have mainly performed the activities they had undertaken in their operational plans. Considering the above, the operational area goal is judged to have been achieved in part in 2019.

Stable pace of rental home building

In total, there were 2,860 building starts for rental units during the year. This result is on a par with the last four years. However, the

A sustainable growing and dynamic metropolis with high growth

PHOTO: LENNART JOHANSSON

The City of Stockholm’s Annual Report 2019

annual target of 5,000 was not reached. The goal is that at least half of home construction shall consist of rental apartments. In 2019, the share was 60 per cent. The City’s housing companies AB Svenska Bostäder, AB Stockholmshem and AB Familjebostäder were responsible for more than 40 per cent of the total number of rental apartments starting construction. The companies report that altogether 1,269 rental units were started during the year, which is 12 per cent lower than in 2018. The goal is for the housing companies to reach a building rate of1,500-2,000 homes per year.

Housing targets linked to the metro expansion

Long-term goals are also linked to agreements made regarding the expansion of the metro. The commitment according to the 2013 Stockholm Negotiations is 45,900 completed homes by 2030. Up to and including 2019, the number is 3,423. The number of plans in the area needs to increase further. According to the Swedish Negotiations, the commitment is 49,000 homes by 2035. Up to and including 2019, the outcome is 5,838.

Continued focus on housing with affordable rents

The City is working to reduce accommodation costs and to produce homes that more people can afford. One goal for the year was to allocate land for at least 400 homes in order to achieve reduced housing costs. The outcome was 300. Projects aimed at finding ways to reduce production costs can be found in Kol kajen in Royal Seaport and in Hagsätra.

4,805 6,044 homes started construction and

Temporary housing with short-term contracts and without tenure protection has been offered to all recent immigrants assigned during the year.

Work on the Stockholmshusen (Stockholm Houses) concept continues. Planning processes for a total of approximately 3,700 homes in Stockholmshus are ongoing. During the year, 957 student housing units were started. A total of 245 student housing units have been completed in Tallkrogen and Hägerstensåsen.

Accommodation has been resolved for all recent immigrants assigned to the city

Temporary housing with short-term contracts and without tenure protection has been offered to all recent immigrants assigned during the year. Accommodation solutions include modular housing, collective accommodation, private rentals and hostel solutions.

The City’s housing and workplace potentials are analysed During the year, an updated Housing Potential in Stockholm was developed, with the

aim of quantifying how much the City’s districts can contribute to the City’s long-term housing goals based, on the City’s master plan and other relevant governance documents. As part of this work, the workplace potential of the areas has also been analysed as part of the conditions.

Agenda 2030 a tool for sustainable urban development During the year, work on sustainable urban development has developed further, among other things on the basis of Agenda 2030’s goals for social, economic and ecological sustainability.

The social value-creating analysis model applies a social value-creating perspective at all stages of the urban planning process, based on local conditions and needs. Work is underway to integrate perspectives such as gender equality and children’s rights into the model.

A sustainable growing and dynamic metropolis with high growth

Indicator

Annual target

Number of homes for which land has been allocated

10,000

8,479 Partially

Increase compared with 2018.

Number of rental apartments for which land has been allocated

5,000

3,984 Not achieved

Unchanged level compared with 2018.

Number of homes in approved/accepted local plans

10,000

5,322 Not achieved

Protracted planning processes resulting from project redesign and less pressure from building actors due to the market situation.

Number of homes started

10,000

4,815 Not achieved

Unchanged level compared with 2018.

5,000

2,860 Not achieved

Unchanged level compared with 2018.

Number of rental apartments started

Total Goal outcome fulfilment

homes were completed in 2019

Number of First Home apartments and trial and training apartments distributed through Bostadsförmedlingen (IoF)

500

Number of permanent units for temporary housing added under SHIS

150

34 Not achieved

Number of homes for which land has been allocated to achieve reduced housing costs

400

300 Not achieved

Two land allocations for 150 apartments each in Royal Seaport and Hagsätra

Number of homes in wooden buildings for which land has been allocated

400

160 Not achieved

The number of companies able to offer wooden houses is limited

Number of homes in approved/accepted local plans in accordance with the 2013 Stockholm Negotiations

3,600

1,206 Not achieved

Percentage of new development that is located within 500 metres of rail or main bus line service

70%

The City of Stockholm’s Annual Report 2019

459 Partially

Comments

70% Fully

Increase compared with 2018. More apartments are under construction and about another hundred are in the planning process.

The number of plans in the area of influence has increased gradually and will need to increase further.

Stockholm’s infrastructure promotes efficient and sustainable transport and good accessibility The City’s transport shall have a smaller environmental impact, at the same time as the City is growing. Accessibility shall be increased through the expansion of pedestrian and cycle paths and improvement measures for public transport and utility traffic as well as smarter transport planning. Emissions from transport shall be reduced through technological development, expanded public transport and reduced car use. Traffic safety shall be increased.

Improved accessibility in a growing city

With the aim of having a well-functioning transport system with minimal climate impact, a continued commitment to improving cycling infrastructure in the city has been ensured by the decision to invest SEK 1 billion during the period 2019-2022. During the year, the following projects were completed: Ulvsundavägen, Torsgatan (stage 1), Spångavägen, Flatenvägen and Lidingövägen. Approximately 10,000 metres of cycle path has been newly built or broadened at an expense of just over SEK 225 million. These investments in the development and strengthening of important cycle routes and reinvestment for bicycles create a well-functioning cycle path network with good accessibility

and a high level of traffic safety. A corresponding investment, of SEK 500 million, to improve accessibility for public transport and for pedestrians resulted in a number of accessibility and well-being measures being implemented this year, for example along the pedestrian path between Hornstull and Telefonplan, along Norrtullsgatan, along Magelungens Strandpromenad, along the quay in Norra Hammarbyhamnen and along Drottninggatan’s extended pedestrian street. Work has continued to increase the average speed, regularity and attractiveness of the key bus routes. During the year, parking fines were increased. In this autumn’s measurement of the proportion of parked cars during an

Operational goal Stockholm’s infrastructure promotes efficient and sustainable transport and good accessibility. Goal fulfilment for the year The annual targets for five out of ten of the City Council’s indicators were achieved in full, four were achieved in part and one was not achieved. 22 out of 29 committees consider that the City Council’s goal for the area of activity is fully met , 7 consider that the annual goal is achieved in part. The committees and company boards have mainly performed the activities they had undertaken in their operational plans. Considering the above, the operational area goal is judged to have been achieved in part in 2019.

PHOTO: FREDRIK PERSSON

A sustainable growing and dynamic metropolis with high growth

The City of Stockholm’s Annual Report 2019

average weekday, the result was that 87.5 per cent of motorists park correctly, which is an increase of 1.4 percentage points over the corresponding measurement in 2018.

Approximately

10,000

The City is pushing for a reduction in car traffic, for example by increasing the attractiveness of the more high-capacity modes of transport, and it can be noted that total road traffic in the city has decreased by 2.2 per cent since the previous year. Transport and development of public transport infrastructure is a regional responsibility. As a result of government negotiations, the City is co-funding some major investments in rail public transport. The City is continuously working to implement the plans decided in government agreements, including work on the expansion of the Tvärbanan line to Kista and the expansion of the metro to Nacka, Solna and Barkarby. An agreement on advance payments of previously agreed municipal co-funding has been reached between Region Stockholm and the municipalities concerned. The purpose of the advance is to bring forward the planning phase for the Älvsjö-Fridhemsplan metro, the Roslagsbanan line to City and the Spårväg Syd tram. The City is also involved in planning work for the widening of the Mälarbanan line from two to four tracks, which will lead to increased capacity for commuter, long-distance and goods trains in Mälardalen.

On the way to a fossil-free city in 2040

A sustainable growing and dynamic metropolis with high growth

Climate-impacting emissions from road transport shall be reduced through, among other things, increased electrification of the vehicle fleet. During the year, the City, in collaboration with the business community,

metres of cycle path has been newly built or widened in 2019.

expanded the infrastructure for electric car charging. A map showing up to 10,000 suitable locations for street charging has been produced and launched. The City is participating in several EU projects aimed at accelerating the development of renewable fuels and alternative modes of transport. For example, quiet night deliveries with electric vehicles are being further developed for better accessibility and reduced emissions. With the aim of influencing the supplier market, Stockholm, in collaboration with the National Agency for Public Procurement and the Swedish Association of Local Authorities and Regions (SKR), has decided to introduce a new definition of green vehicles, which means a tightening of the previous application of emission levels. The requirements of public procurement can thus be coordinated and used as a driving force to achieve the national goal of a fossil-independent vehicle fleet and the City’s goal of a fossil fuel-free Stockholm by 2040.

Indicator

Annual target

Proportion of vacant paid parking spaces in the inner city, daytime

14%

Proportion of environmental fuel in the City’s ethanol and biogas vehicles

86%

Number of bicycles Average speed of main line buses in the inner city Average speed of main line buses in the suburbs Pedestrian flow on a selection of streets

86,500

Total Goal outcome fulfilment

11.8% Partially

63,430 Not achieved

The number of parking spaces available is slightly reduced, while demand remains unchanged.

Poorer weather during the measurement period contributed to a lower outcome. No change in outcome compared with the previous year.

30 km/h

28 km/h Partially

An improvement compared with the previous year.

Increase by 1%

3.6% Fully

9,600

9,300 Fully 1.10 tonnes Fully per resident

The City of Stockholm’s Annual Report 2019

Comments

17 km/h Partially

1.10 tonnes per resident (refers to 2018)

The City of Stockholm has won the Civitas Legacy Award 2019, awarded by the European Commission’s Directorate-General for Transport and Mobility. Stockholm receives the award for its long-term work and commitment over the last 25 years and the results achieved in terms of clean and sustainable transport.

18 km/h

Passages through the inner city, heavy goods vehicles

Number of public charging points

Stockholms Hamnar AB has invested in sustainable solutions in the Värtahamn terminal that have made it possible for the ships to connect to electricity at all berths. Electrical connection at the quay reduces the ships’ impact on the environment by allowing auxiliary motors to be switched off, reducing both noise and emissions to air. The plant is the most modern and power-efficient in the Baltic Sea region.

86% Fully

Greenhouse gas emissions in the transport sector per resident (tonnes of CO2e per resident) Fossil fuel sold

“

Climate-impacting emissions from road transport shall be reduced through, among other things, increased electrification of the vehicle fleet.

8.0 TWh 1,700

8.6 TWh Partially 1,766 Fully

The increase of 0.1 TWh is due to an increase in the total amount of energy in fuel sold. The share of renewable fuels increased from 30% to 31%.

Stockholm is a modern city of culture and events with a strong tourism industry Stockholm will continue its development towards a living, inclusive, open and modern city of culture and sport and a leading, climate-smart and attractive event city. The city shall be characterised by a rich variety of culture and sport. Independent culture, clubs and associations shall have favourable and predictable conditions. Sport and activity in the local environment shall be accessible to everyone regardless of their functional capacity or where they live.

High participation in the School of the Arts

During the year the School of the Arts has offered children and young people an increased range in areas such as short courses, holiday courses, weekend activities, El Sistema activities in schools and targeted free activities in collaboration with schools, for example. The School of the Arts has also had a record number of student places in the fee-paying activities during 2019. A total of 18,850 student places were involved during the year, an increase of 4.2 per cent on the previous year. During the year, a new cooperation agreement with the School of the Arts in Husby has been developed, and from the turn of the

year Kulturhuset Stadsteatern will be present in Husby with a focus on professional performing arts and co-creation. Kulturhuset Stadsteatern will have a focus target group in Husby for young people and young adults aged 15-25, and in cooperation with the School of the Arts will reach even younger target groups.

Many visitors to the city’s libraries During 2019, the Stockholm City Library has had 10.6 million visits. Of these, digital visits have increased by 11.5 per cent compared to 2018, reflecting the ongoing shift in media to digital formats and the increasing search for information about library activities in digital channels. Development work has begun with the aim of identifying the possibilities of

Operational goal Stockholm is a modern city of culture and events with a strong tourism industry. Goal fulfilment for the year The annual targets for three out of six of the City Council’s indicators were achieved in full and three were achieved in part. For one indicator, no measurement has been made and it is based on assessment. 24 out of 26 committees consider that the City Council’s goal for the area of activity is fully met and two consider that the goal is achieved in part. The committees and company boards have performed the activities they had undertaken in their operational plans. Considering the above, the operational area goal is judged to have been achieved in full in 2019.

A sustainable growing and dynamic metropolis with high growth

PHOTO: MATTIAS PRODROMOU DAHLQVIST

The City of Stockholm’s Annual Report 2019

further strengthening the City’s work on film through collaboration with Region Stockholm.

An equal cultural, sporting and leisure offering

Stockholm’s cultural, sporting and leisure activities shall be open to all. During the year, the City continued to work to create more equal and open activities. Several District Councils have worked to increase user participation in the planning and selection of activities, including in recreation centres and at the city’s spontaneous sports grounds. During the year, the City has started work on developing a strategic cultural programme; the rules for support for non-profit children’s and youth associations have been revised and the support system for free cultural and sporting clubs and associations has been adjusted. Still, more boys than girls are physically active both in association sport and when all physical activity is included. In order to promote more equal sport in Stockholm, support for associations and investment in sports facilities are two tools in use. During

18,850

children and young people participated in the activities of the School of the Arts in 2019

the year, three facilities were added or started that will improve access to facilities. These are a special hall for gymnastics at Mälarhöjdens IP, a dance floor in Rågsved and an outdoor swimming pool at Järvafältet. During the year, a number of associations applied for and received support for open activities for teenage girls in socio-economically weaker areas, a priority target group according to the City’s sports policy programme. During the year, the City’s activities received government support for holiday activities and have thus been able to offer an even greater range of summer holiday activities such as sports camps, day camps and festivals. In many cases, the activities have been arranged together with clubs and associations. The

PHOTO: HERMAN CAROAN

A sustainable growing and dynamic metropolis with high growth

Indicator

Annual target

Outcome Total

Women

Percentage of children and young people who are satisfied with access to cultural activities

75%

Stockholmers’ satisfaction with municipal cultural institutions

81%

83%

4.8

4.6

32.8%

61.4% Partially

74%

73%

73% Partially

Total number of loans in municipal libraries per resident Percentage of children and young people who are satisfied with access to sports activities Utilisation of large sports halls (20x40) Number of hours booked in school gyms outside school hours

The City of Stockholm’s Annual Report 2019

88%

93%

93,000

92,500

78%

Men

Goal fulfilment

city-wide Leisure For All network works to create activities for children and young people with disabilities.

A modern event city with strong tourism industry

Work to develop Söderstaden continued during the year. Söderstaden will serve as Stockholm’s event and entertainment hub with a wide range of events sports, culture and entertainment events, as well as establishing shops, offices and services. The area will be developed gradually and in several stages. During the year, the City implemented changes to meet the future needs for visitor services. Among other things, a new tool for more efficient visitor services in social channels has resulted in faster processing and better interaction with visitors and a network of private tourist information has been established.

Increased cultural presence in public spaces

Stockholm’s public spaces shall encourage the presence of culture in the public sphere. Within the concept of Living Stockholm, during the year the city’s residents have been able to enjoy cultural elements in six places with nine different programme points. Another example of artistic elements in the urban environment is that an underpass in Gubbängsmotet has been provided with art in the form of pictures of female rugby players. In order to encourage cultural activities, public gatherings, such as the performance of artistic works, on the City’s land are free of charge. The same applies to all non-marketing events aimed at children and young people.

Comments

73% Fully Fully The remaining 5.8 per cent is done by pre-schools and other actors that cannot be defined by gender. Efforts to increase young people’s participation in the design of activities is ongoing.

Fully Partially

Increase compared with 2018. The annual targets could not be reached because about ten gyms were closed during the autumn.

Stockholm is a sustainable city with a good living environment Stockholm shall lead the way in climate activities and set an example for other cities by combining high growth, good living environments and minimal environmental impact. A sustainably growing Stockholm demands that buildings, transport and system solutions shall be designed in a way that reduces the climate impact. The goal is for Stockholm to be fossil fuel-free by 2040 and that the City’s own organisation shall lead the way and be fossil fuel-free by 2030.

City-wide governing documents

A proposal for a new environmental programme 2020–2023 in parallel with proposals for a new climate action plan 2020–2023 has been developed in 2019 in a broad collaboration with City committees and company boards. The proposal for the Environment Programme 2020–2023 focuses on the main environmental challenges during the period. The programme proposal also describes implementation and follow-up, as well as how collaboration, innovation, the purchasing process and communication activities shall contribute to the achievement of objectives. The programme proposal is ambitious and takes into account new perspectives such as consumption and resource management, which will together contribute to a higher goal fulfilment in all target areas of the City’s environment and climate work. The Climate Action Plan expresses the City’s climate budget up to 2040 in the form of an ambition of a maximum permitted amount of

19 million tonnes of carbon dioxide equivalents over the period 2020–2040.This is the part of the global climate budget that the City intends to take on. For the period 2020–2023, concrete measures to reduce greenhouse gas emissions are presented, which will lead to a maximum target of 1.5 tonnes of CO² per resident being achieved. These measures are specified as conditions for various designated municipal committees and company boards. The measures represent the City’s climate budget for the period 2020–2023. How the city can become a climate-positive city by 2040 has also been analysed, based on the possibility of achieving negative greenhouse gas emissions within the city boundary. By means of these raised ambitions, the climate action plan will consolidate the City as a world-leading international role model in the implementation of the Paris Agreement’s intentions.

Operational goal Stockholm is a sustainable city with a good living environment. Goal fulfilment for the year The annual goals for 8 out of 20 of the City Council’s indicators were achieved in full, 8 were achieved in part and 4 were not achieved at all. 25 out of 30 committees consider that the City Council’s goal for the area of activity is fully met and 5 consider that the goal is achieved in part. The committees and company boards have mainly performed the activities they had undertaken in their operational plans. Considering the above, the operational area goal is judged to have been achieved in full in 2019.

A sustainable growing and dynamic metropolis with high growth

PHOTO: LIESELOTTE VAN DER MEIJS

The City of Stockholm’s Annual Report 2019

The organisation for the City’s sustainability work has also been formulated during the year on the basis of Agenda 2030 and the City Executive Board’s Council for Agenda 2030 has been established.

“

Coordinated transport

During the year, the City has worked to reduce unnecessary transport and handling of excavation spoil and backfilling materials, resulting in an action plan for handling loose materials and spoil. In Royal Seaport, a construction logistics center (BLC) and a materials logistics center (MLC) have been established to minimise transport flows linked to loose material deliveries, waste management and handling loose materials and spoil in the area. Sorting at MLC during the year has amounted to about 30,000 tonnes, while about 17,500 tonnes have gone to landfill, which has meant more than a thousand fewer truck loads. Coordinated construction waste management through BLC has reduced transport of construction waste by up to 67 per cent. In Hagastaden, the City coordinates transport through a notification system and specified collection point for the vehicles. Construction waste management has been gathered and handled in one place instead of by each operator within their own construction sites, which has saved space and reduced the amount of heavy transport throughout the area.

Energy efficiency and renewable energy

A sustainable growing and dynamic metropolis with high growth

In 2019, the City has continued its efforts to reduce energy use, increase the share of recycled energy and increase the share of renewable energy. The City has also worked to optimise the systems for heating, cooling and ventilation in order to reduce energy consumption and has set energy-related requirements in new buildings and rebuilding. The City has also continued its efforts to increase the production of renewable energy in the city’s buildings and during the year, among other things, solar cell systems have been installed at Hjorthagshallen, Mälarhöjden gymnasium and Telefonplanshallen. Several properties, including Farsta swimming and sports centre, have been investigated with regard to the possibility of installing solar cells and/or solar energy collectors. In addition to these, planning for additional facilities has been initiated.

Air quality

Motor vehicle traffic in the city affects air quality and the City has worked during the year to ensure that environmental quality standards for nitrogen dioxide (NO2) and particulate matter (PM10) are not exceeded. The City’s efforts to reduce PM10 have yielded results, mainly through the development of new dust-binding technologies and 64

The City of Stockholm’s Annual Report 2019

The City’s efforts to reduce PM10 have yielded results, mainly through the development of new dust-binding technologies and by banning studded tyres on three of the city’s streets.

planted about 7,000 deciduous trees, oak, beech and maple, on an area of 2-3 hectares in Nacka and Ågesta reserves. The planting measure has bound carbon dioxide from the atmosphere, while a conversion from production forests of spruce to mixed forests has contributed to increased natural values.

by banning studded tyres on three of the city’s streets. Various measures have been investigated to further improve air quality in the city. The budget for the City of Stockholm 2019 states that the City will prepare a decision to introduce environmental zone class II on Hornsgatan from 1 January 2020 and, in an attempt to further reduce air pollution from traffic, the City Council has decided to introduce environmental zone Class II on Hornsgatan from 15 January 2020.

During the year, the City also started work on developing the green compensation tool with a particular focus on ecological compensation. In connection with development projects, the qualities of nearby parks and green spaces are being developed through green compensation and, as part of urban development, the City is also building and developing new parks and green spaces within the development projects. The City has also worked further on the implementation of green space factor (GYF) for the City’s projects, which means that in connection with land designation on the City’s land for new construction, requirements have been made for both stormwater management and the use of green space factor in the planning of district land.

Microplastics

The use of plastic materials and the spread of microplastics can lead to consequences affecting both the environment and the climate. During the year, the City has worked continuously on the issue with the aim of finding new solutions and limiting the impact of plastic materials on the environment from sports activities, among other things. During the year, a survey of the existing artificial grass pitches was carried out which resulted in the City revising and strengthening the requirements for ordering new artificial grass pitches, with the aim of making artificial grass pitches sustainable and limiting their environmental impact. When implementing the new environmental requirements, the use of plastic is estimated to decrease in new artificial grass pitches by 40 per cent. The City has also introduced improvement measures such as the installation of granule traps in stormwater wells at around ten facilities and the purchase of shoe brushes to prevent the spread of microplastics from the existing artificial grass pitches.

Climate investments

The City Council allocated climate investment funds for measures to contribute to the City’s potential to achieve the long-term targets, i.e. reducing the climate-impacting carbon dioxide emissions and a high level of preparedness for future climate changes. A large part of the climate investment funds allocated in 2019 were used for energy efficiency enhancements in the City’s operations, such as switching to new white goods, LED lighting, electric bicycles and solar powered waste bins. Several projects for climate adaptation measures have also been implemented.

Green structure

During the year, the City continued the important work of planning, designing and managing green structures with a view to strengthening biodiversity and ecosystem services in the city. In 2019, the City has

Toxin-free

During the year, the City continued its efforts to implement the Chemsoft and Construction Products Assessment (BVB) systems, which help the City’s operations in the management and selection of chemical products and materials. Both of these systems have also been used to monitor the effects of chemical work in the activities. The City is a member of the Construction Products Assessment and has contributed to the system’s further development during the year. Among other things, the City contributed to the adaptation of the system for construction projects and in the development of new criteria for endocrine disruptors, which was noticed by the Construction Products Assessment and the city was named member of the year for its commitment. During the year, a proposal for a new chemical plan to apply from 2020 has also been developed.

Food waste collection

The goal of food waste collection has been a challenge, but the city has high ambitions in this area. Work has intensified in 2019 and we have a continued upward trend. In tonnes, this represents an increase in 2019 of 1,360 tonnes to 25 040 tonnes. The number of collection points for food waste has also increased by 3,052 in 2019, giving a total of 22,954 collection points. However, in order to achieve the City’s 2019 goal, most businesses, apartment buildings and detached homes would have had to be connected to compensate for those apartment buildings that are unable to sort out the food waste in anticipation of the upcoming sorting plant in Högdalen.

25,040 tonnes of food waste collected in 2019.

Indicator

Proportion of development projects that provide relevant green space compensation when claiming land in areas with ecological and recreational values Proportion of hazardous waste in household waste

Annual target

90%

Total Goal outcome fulfilment

80% Partially

Comments

In 5 of the 33 development projects completed during the year, it has been assessed that land in areas with ecological and recreational values has been claimed. Of these, relevant green space compensation has been implemented in 4 projects.

0.12%

0.10% Fully

Percentage of waste collection points with the possibility of food waste collection that actually have food waste collection

60%

72% Fully

Percentage of food waste to biological treatment of the expected amount produced

60%

26% Not achieved

An increase of 1,360 tonnes to 25,040 tonnes. The number of food waste collection points has increased by 3,052, giving a total of 22,954.

Percentage of water bodies that comply with environmental quality standard for ecological status

45%

26% Not achieved

Physical action has not begun to be performed to a sufficient extent to reduce the levels of nutrients and environmental toxins reaching the city’s bodies of water.

Energy consumption in newly produced buildings Purchased energy (GWh)

55 kWh/ sq.m. 1,735 GWh

55 kWh/ Fully sq.m. 1,740 GWh Partially

Purchased energy for heating, comfort cooling and hot water in the City’s public utility housing companies (kWh/m2 living area and total area)

144 kWh/m2 152 KWh/m2 Partially

New occupancy in a number of major renovation and new building projects. The trend is downwards, although the housing companies face a challenge in the mixed stock with maintenance needs or other priority measures.

Amount of household waste per person

468 kg/pers

Forecast Fully 468 kg/pers

Measured in March.

2.2 tonnes CO2 / resident

2.2 tonnes Fully CO2 / resident

Greenhouse gas emissions per resident (tonnes of CO2e per resident) Annual solar energy production (MWh)

3,223 MWh Fully

75%

96.2% Fully

Percentage of bathing areas with good water quality

90%

74% Partially

A leaking sewage pipe in Gröndal affected the bathing water at Ormberget, Långholmen and Smedsuddsbadet. Broken sewage pump at Långsjön bathing area.

Percentage of construction contracts under the City’s direction that meet the City’s requirements for use of the Building Materials Assessment (BVB) or comparable systems

100%

74% Not achieved

The committees and boards that have not reached 100% are due to the fact that work on implementing BVB is ongoing but not completed – some projects are still not registered in BVB despite requirements.

Percentage of ecological meals and food purchased in the City in SEK out of the total value of purchased meals and food

50%

45.2% Partially

14 Partially

Number of 15 selected substances that indicate decreasing or unchanged levels in sludge Number of days over the norm for nitrogen dioxide in air Number of days over the norm for PM10 in air Number of chemical products that contain the phase-out substances and are used in the City’s operations

Percentage of the City’s own properties with buildings used for housing, workplaces or educational facilities with radon levels below 200 bq/m³ air

Max 7 days Max 35 days

This is partly due to the fact that older agreements have a target value of 40%; work is ongoing on the renegotiation of agreements, as well as information and training activities. 14 out of 15 substances show a reduced or unchanged level in sludge. PBDE 209 level is increased by 7%.

20 days Not achieved 30 days Fully

112

129 Partially

100%

91.8% Partially

During 2019, continued implementation/inventory has meant that the total number of products in use also increased slightly this year (by about 4%). This, combined with the fact that substances and the classification of individual products may vary over time (becoming either more or less strict) has marginally increased the total number of (unique) products with phase-out substances. Other explanations are that committees and companies need to speed up their substitution work. Measurements are ongoing, as are clean-ups. Remeasurement is required after 10 years.

The City of Stockholm’s Annual Report 2019

A sustainable growing and dynamic metropolis with high growth

3,150 MWh

Percentage of the City’s pre-schools that conducted all measures at level 2 according to the Chemicals Centre’s guide for a chemically smart pre-school

PHOTO: URBAN ICT ARENA

An economically sustainable and innovative metropolis for the future

An economically sustainable and innovative metropolis for the future Stockholm shall be an economically sustainable metropolis for the future. The City shall have a balanced budget and finances that are sustainable in the long term and the tax resources shall be used effectively for the greatest benefit to Stockholmers. The City needs to continuously work to develop as an attractive employer. The City shall have a common approach to employer and development issues and develop and implement initiatives to ensure the supply of managers and competence. The use of digitalisation and new technologies creates the conditions for innovation and increased growth in Stockholm, but also opportunities for increased process efficiency and innovative power. Digital working methods shall be a way of increasing the efficiency of activities and thus contribute to the provision of skills and the quality of welfare. The overall assessment is that this orientation goal was achieved in full during the year. This assessment is based on the fact that of the total of two underlying targets, both were achieved in full.

The City of Stockholm’s Annual Report 2019

Stockholm has a balanced budget and finances that are sustainable in the long term Stockholm is Sweden’s economic engine and has a fundamentally robust economy. At a time when Stockholm is growing on a historic scale, the City must reconcile high ambitions for welfare with extensive investment and an economy that is sustainable in the long term. Therefore, the City shall always strive to be more efficient in providing public services at lower cost and of increased quality. The financial statements for 2019 show a surplus of SEK 2,728 million.

Continued high budget compliance

The City’s committees show a surplus of a total of SEK 224 million, of which SEK 46 million refers to the District Councils. The largest deviation is reported by the Transport Committee, where the surplus is mainly due to increased income from letting activities and reduced capital costs. The Social Services Committee and Urban Planning Committee also report larger surpluses. Of the District Councils’ total surplus, Östermalm District Council accounts for the vast majority, where the surplus is found in elderly care, which has lower costs for home care, as well as care homes.

cost awareness so as to achieve good budget compliance and forecast security.

Goal fulfilment for the year The annual targets for all of the City Council’s ten indicators are achieved in full. The committees have generally conducted the activities they had undertaken in their operational plans. Considering the above, the operational area goal is judged to have been achieved in full in 2019.

The total investment in the City was SEK 1,069 below budget during the year, resulting in a budget compliance rate of 87 per cent and a forecast certainty of -9 per cent compared to the second four-monthly report. The outcome shows that governance and follow-up of investment projects needs to be developed within the City.

Annual target

Indicator

Total Goal outcome fulfilment

Municipal Group’s equity/assets ratio including pension commitments in the short term

30%

49.3% Fully

Municipal Group’s equity/assets ratio including pension commitments in the long term

34%

49.3% Fully

Committee budget compliance after surplus transfers

100%

99.5% Fully

Committee budget compliance before surplus transfers

100%

99.8% Fully

+- 1%

0% Fully

Committee forecast reliability T2 City’s surplus (minimum)

SEK 0.1 SEK 2,728 Fully million million

City’s capital costs as a percentage of net operating costs (max)

6% Fully

City’s net operating costs as a percentage of tax income (max)

100%

101% Fully

City’s equity/assets ratio including pension commitments in the short term

30%

35% Fully

City’s equity/assets ratio including pension commitments in the long term

34%

35% Fully

PHOTO: LENNART JOHANSSON

The City of Stockholm’s Annual Report 2019

An economically sustainable and innovative metropolis for the future

The overall result for the year shows that the committees have a good ability to follow their operating budget and end up with a budget compliance rate of 99.5 per cent after surplus transfers. In order to continue to secure a balanced economy, efficiency and collaboration work is ongoing, both within the City and also with external actors, to promote innovation and find new solutions to reduce costs. Most committees also describe how they renew working methods, develop analyses and work with increased

Operational goal Stockholm has a balanced budget and finances that are sustainable in the long term.

Stockholm uses tax funds effectively for the greatest benefit for Stockholmers The City’s administration shall be efficient and the organisation shall be adapted to deliver what Stockholmers have the right to expect cost-effectively and with high quality. The City shall set an example as a public employer. Determined efforts to take advantage of the opportunities of digitalisation, continuous skills development for welfare employees and more efficient use of premises are also essential elements that ensure that taxpayers’ money is spent responsibly and in the best way. The City’s procurement and purchasing activities shall promote freedom of choice, cost-effectiveness, the environment, climate and social sustainability.

Competence development for effective welfare

A long and sustainable working life

Leadership for business development

An equal and sustainable working life provides employees with good conditions to contribute to high quality work. All committees and company boards work to ensure that all employees are aware of current procedures for abusive treatment, harassment, sexual harassment, discrimination and reprisals.

The provision of competence is a priority for the city. In order to safeguard task-critical skills in the welfare professions, such as basic education for child minders and the competence of dementia and geriatrics staff in elderly care, training efforts have been carried out with the support of the City’s competence development initiative. For 2019, the committees were granted approximately SEK 61 million for education and temporary staff cover. Approximately 11,000 training places have been offered to City employees. The priority courses are mainly in dementia and geriatric competence, basic nursing education, advanced training in social services and supplementary education for pre-school teachers.

An economically sustainable and innovative metropolis for the future

Leadership is important to ensure that the City has skilled and committed employees who contribute to developing the operation. In October, the City held executive seminars on the theme “Leading in change with courage and trust”. Committees and company boards carry out training activities in areas such as the work environment, rehabilitation and competence-based recruitment. The City-wide introduction programme Manager in the City was conducted with around 80 participants during the year. Managers, leaders and employees are also offered development groups to strengthen and develop the City’s leadership and staff commitment. As part of the City’s action plan to improve the working situation for social workers and aid administrators, fourteen leadership development programmes have been implemented since 2016, involving a total of 200 managers at different levels in social services and care for the elderly. During the year, the city’s fifth trainee programme for academics was completed and recruitment for the sixth programme was performed. 68

The City of Stockholm’s Annual Report 2019

It is important for the City to be a good employer so that the City’s 44,813 employees feel they have meaningful work and can develop. The results from the employee surveys are generally good. A majority of employees, 89 per cent, believe that they have a very meaningful job, 91 per cent understand to a great extent how their work contributes to the organisation’s goal fulfilment and 84 per cent feel that their manager has confidence in them.

The City’s total sick leave continues to decrease. The City’s companies have lower sick leave than the City’s District Councils. When companies are included, the total sick leave figure stands at 6.0 per cent, which is a decrease compared to 2018, when total sick leave was 6.1 per cent. At the start of the year, sick leave in the committees stood at 6.2 per cent, while at the end of the year it was 6.0 per cent. It is the short-term sick leave, 1-14 days, that has decreased. Women’s sick leave has decreased by 0.2 percentage points, while men’s sick leave remains unchanged. Sick leave in the age group up to 29 years has increased, while sick leave in the age groups 30-49 years and 50 years plus has decreased. Continuity is a vital factor in good quality, and the committees are working continually to introduce full-time employment as the norm. The aim is that all new employees shall be full-time and all involuntary part-time employees shall be offered full-time work. The percentage of full-time employees has continued to increase in 2019 and now totals 89.7 percent. For women, the proportion is

Operational goal Stockholm uses tax funds effectively for the greatest benefit for Stockholmers. Goal fulfilment for the year The annual targets for one out of three of the City Council’s indicators was achieved in full and two were achieved in part. 26 out of 32 committees consider that the City Council’s goal for the area of activity is fully met and six committees consider that the goal is achieved in part. The committees and company boards have mainly performed the activities they had undertaken in their operational plans. Considering the above, the operational area goal is judged to have been achieved in full in 2019. The goals for the two work environment indicators are at a relatively high and stable level, even if they are not reached. A positive development can be observed in other areas the goal includes, such as sick leave, the proportion of full-time employees and the city’s work on purchasing and innovations, which are described below.

89.6 per cent and that for men is 90 per cent. The proportion of permanent employees is also increasing and now stands at 89.6 per cent. For women, the proportion is 90.6 per cent and that for men is 86,7 per cent.

Strategic purchasing for sustainable social development

The City has developed and submitted an updated proposal for a programme for purchasing. The starting point for drawing up the proposal has been to illustrate and strengthen the strategic importance of purchasing work for the development of the City’s activities. Emphasis has been placed, among other things, on the importance of cost-effectiveness, innovation, development of competence in ordering and an active follow-up of the City’s purchasing. The programme describes principles for how the City’s purchasing work shall be conducted throughout the process from procurement of goods, services and contracts to active management of agreements. Development of the City’s purchasing work has continued. The ability to take are of the

potential that exists for tendering by small businesses has been improved, agreement follow-up has been strengthened and support for committees and companies has been improved. In order to ensure that orders (call-offs) are made correctly and at agreed prices, the activities connect local agreements to the City’s purchasing system. The City’s category-controlled purchasing work continues to be developed to help ensure that skills and resources are used efficiently. The work now includes six categories, which are vehicles, white goods, meals and food, electricity, cleaning of premises and furnishings and fittings. In each category, activities and purchases are linked with expert category leaders and representatives from the City’s various activities.

In the City’s elderly care, several trial activities have been underway. A digital key system has been procured aimed at increasing the security of the elderly with home care and improving the work environment for the City’s employees. During the year it became clear that EnskedeÅrsta-Vantör District Council will participate in the Food Innovation Network’s project “Zero Vision for Malnutrition in the Elderly”. The project aims to solve problems of malnutrition for older people living at home

with the goal of developing a scalable and accessible working model for municipalities and county councils. The project is supported by Vinnova. The EU project Stockholm Digital Care, which aims to develop new technologies for the elderly and to create growth for small and medium-sized companies in the Stockholm region, has carried out several tests in the City’s operations during the year. For example, the world’s first sleep robot, Somnox, has been tested in a nursing home. The experience of the tests in the project has contributed to the selection of technology for the pilot for digital night surveillance that was started during the year.

Gender integration

The City has continued its efforts to integrate gender equality in the activities, including through skills development and new procedures. During the year, the Education Committee has increased the proportion of service reports containing a gender analysis from 19 per cent to 83 percent.

PHOTO: SUSANNA BJÄLEVIK

During the year, procurement was carried out of system support for procurement and agreement management for the municipal group. The introduction is ongoing and is an important part of the efforts to increase the digitalisation of the purchasing process. The system support is expected to contribute to more uniform purchasing within the City and strengthen the City’s ability to follow up agreements effectively.

In the Spånga-Tensta district council area, the introduction of new lighting has started in a pilot project. The project, which is run as part of the Smart and Connected City programme, is testing a control system with connected lamp posts with smart functions. The goal is to save energy, increase efficiency in operation and maintenance and increase the well-being of the residents. In Spånga-Tensta there is a variety of environment types, which provides good opportunities to evaluate different needs for lighting before it is scaled up to other districts.

Innovations for sustainable social development

An economically sustainable and innovative metropolis for the future

The City has in various ways strengthened its efforts to use the opportunities for business development that exist in digitalisation and other innovations. The City has adapted the organisation and established cross-functional working methods to improve the control and coordination of the activities’ resources in work on digitalisation and innovation. Employees and managers have participated in competence-enhancing initiatives so as to create good conditions to build an innovative culture and test new ways of working in the activities. A number of simple processes in the City’s activities have been identified as being profitable to automate and a number of processes have been automated during the year by means of Robotic Process Automation (RPA). The automation of, for example, administrative financial and payroll processes has led to efficiency gains.

Indicator

Annual target

Outcome Total

Women

Men

Goal fulfilment

Active co-creation index

79 Partially

Index Good employer

- Partially

87%

95%

- Fully

Proportion of procured agreements in which a plan for systematic monitoring has been drawn up

Comments

Sub-index leadership is unchanged compared to 2018 while sub-index motivation decreased by one unit and sub-index governance decreased by 2 units. Sub-index equality and attractive employer is unchanged compared to 2018 while sub-index recommend workplace decreased by 3 steps.

The City of Stockholm’s Annual Report 2019

PHOTO: FAMILJEBOSTÄDER/MARKUS HALLBERG

Economic and financial reporting

The annual report covers the City of Stockholm Municipal Group. The Municipal Group includes the City and the municipal companies. Municipal companies refers to the City’s majority-owned companies within the Stockholms Stadshus AB Group. Stockholms Stadshus AB is owned by the City of Stockholm and constitutes a unifying function for most of the City’s limited companies. For a more detailed description of the limited companies, please refer to the annual report for Stockholms Stadshus AB, which can be ordered from stadshusab.se. With effect from 2019, the SHIS Bostäder Foundation is part of the municipal group. Comparative figures are corrected.

The City of Stockholm’s Annual Report 2019

Operational reporting This section presents how the outcome of operations relates to the budget established for the ongoing operations. Major deviations from budget consist mainly of capital gains and profits from the sale of development properties, items that are not budgeted due to their uncertain nature. In the annual accounts, these items amount to SEK 2,453 million, a positive budget deviation. Sales have been made mainly in the Slakthus area, Hagastaden and Medborgarplatsen as well as a large sale of leasehold rights in different parts of the city. According to the decision of the council, surpluses made in the financial years 2014 and 2017 may be allocated from equity. The allocation is directed to projects which are deemed to have a lasting value for the city. These costs are not budgeted and therefore give a negative budget deviation for the performance budget. In 2019, SEK 415 million has been allocated. The introduction of a change of suppliers for the common IT platform, GSIT2.0, and modernisation of social systems are the largest projects during the year.

Indexation of provisions for co-financing the bus terminal at Slussen and Sweden negotiations was not budgeted and gives a budget deviation of SEK -0.1 billion as well as increased provisions for the bus terminal due to the project becoming more expensive.

Deviations from budget committees

Älvsjö District Council, the City Development Committee and the Real Estate Committee show a negative deviation from budget, while Östermalm District Council, as well as the Transport Committee, Social Services Committee, City Executive Board and Urban Planning Committee show large surpluses. The Transport Committee shows a surplus of SEK 94 million, partly due to increased income for building establishment. The Social Services Committee’s surplus of SEK 75 million is mainly due to fewer newly arrived refugees and thus reduced costs. High

occupancy in institutions for the homeless brings higher income. The City Executive Board’s surplus of SEK 25 million is mainly carry-forward funds for the political organisation. The City Development Committee’s deficit of SEK 42 million is due to a reduction in ground rent as a result of court judgments. Land sales income is also lower due to deferred judgments. The Real Estate Administration shows a deficit of SEK 22 million due to the fact that planned savings targets could not be fully achieved. Of the District Councils, Östermalm District Council shows a large surplus of SEK 38 million. The surplus derives from care for the elderly. This district has lower than average elderly care. The district also has a larger than average use of RUT deductions. Älvsjö District Council shows a deficit of SEK 4 million, partly attributable to an increased number of placements in nursing homes. The Education Committee shows a total surplus of SEK 3 million. The schools have used SEK 119 million from surplus reserves during the year.

PHOTO: FREDRIC SANDIN CARLSON

Tax income, equalisation and general government grants have given a surplus over budget of SEK 312 million. It is the adjustment item that has been higher than budgeted, as a result of the government also providing the so-called welfare billions in 2019. The City’s costs for pensions resulted in a negative budget deviation of SEK 184 million due to a larger increase in pension debt than budgeted. The budget deviation for the debt component amounts to SEK -214 million. From 2019 onwards, the City’s pension manager KPA has started updating the financial data several times during the financial year. This is expected to lead to better forecasts and calculation data from 2020 onwards.

The City of Stockholm’s Annual Report 2019

Economic and financial reporting

Personnel costs for the City increased by 3.7 per cent compared with 2018, which is a smaller increase than the previous year. The average number of full-time workers has increased by 562, which is significantly less than the corresponding increase in 2018. Employer contributions for the City’s personnel show a small surplus over budget. For older workers, the special payroll tax was removed at mid-year. For very young employees, employer contributions decreased on low annual incomes from August onwards – unbudgeted changes.

Investment reporting Municipal Group investments

The Municipal Group’s gross investments have remained at a high level and in 2019 amounted to SEK 20,104 million (19,171). The investment volume for Stockholms Stadshus AB amounted to SEK 12,858 million (12,582). The investment volume has increased in recent years. The number of projects over SEK 300 million at year-end was around 60. The housing companies are responsible for the new production of homes and are conducting technical improvements to existing properties. The housing companies’ investments in new production and renovation projects amount to almost SEK 5.5 billion, which corresponds to almost half of the housing group’s total investment volume during the year. During the year, the housing companies started construction of 1,269 new homes, which is slightly lower than in 2018 (about 1,400 homes). SISAB’s investments amount to nearly SEK 2.3 billion. The single largest investments relate mainly to the rebuilding and extension of Östra Real upper secondary school and Enskedefältet school. Stockholm Vatten och Avfall’s investments amounted to nearly SEK 3 billion. The investments are attributable to measures in both existing networks and development areas, as well as the project Stockholm’s Future Wastewater Treatment. The diagram below provides an overview of how the Municipal Group’s gross investments were allocated in 2019. The investments consist primarily of new housing construction and acquisition of land and properties. The term “new construction in progress” means investments in non-current assets of significant value that are under construction, but not yet completed.

14 %

Economic and financial reporting

84 % ■ Acquisition of land and property ■ Acquisition of other assets ■ Investment in constructions in progress 72

The City of Stockholm’s Annual Report 2019

The financial position of the Municipal Group

At the balance sheet date, the City of Stockholm Municipal Group had an external debt of SEK 57,602 million (48,106) and a net debt of SEK 57,585 (48,051), which represents an increase during the year of SEK 9,496 million and SEK 9,534 million respectively. The increase is due to a high level of investment in the municipal group, which is partly financed by loans. The Municipal Group’s investments affect the city’s loan needs as shown in Figure 1 on the right.

Investments in the City

The City’s investment expenses in 2019 amount to SEK 7,433 million (7,349), which is an increase of 1.1 percent over 2018. Investment income for the year amounted to SEK 230 million (210). Net investment expenses amounted to SEK 7,203 million. A number of major investment projects are under way, of which the largest during the period have been Slussen, Royal Seaport, Hagastaden and Årstafältet. Major ongoing renovation projects are Medborgarhuset, Östermalmshallen and Kulturhuset. Other investments that have been made include commuter routes for cyclists. Approximately SEK 1.8 billion of the expenditure relates to investments aimed at achieving the City Council’s housing construction targets, and approximately SEK 2.2 billion has been invested to promote efficient and sustainable transport with good accessibility. Investment in commercial premises amounts to SEK 1.1 billion, of which Östermalmshallen and Medborgarhuset are the largest. Investments in culture and sport total SEK 1.1 billion. Around one third of the City’s investment volume refers to investments in infrastructure. The City’s largest infrastructure project is the demolition and reconstruction of Slussen. The proportion of replacement investments is higher than before due to the rebuilding of Slussen. Just over half of this year’s investments consist of replacement investments.

Co-financing

In order to conduct urgent investments in road and rail traffic in Stockholm, the City is a co-financier of a number of major government and regional infrastructure projects. During the year, the City paid SEK 436.3 million in co-financing for the expansion of

the metro in accordance with the Stockholm Agreement, the bus terminal at Slussen, compensation measures in the National City Park and the reinforcement and renewal of the electricity grid in the Stockholm region. Just over half of the payments relate to the expansion of the metro. Region Stockholm has announced cost increases in the project for expanding the metro in accordance with the Stockholm Agreement. There is currently a review of the project and discussions on possible changes in the structure and scope of implementation and funding. During the year, Region Stockholm and the municipalities concerned reached an agreement on the advance payment of co-financing for public transport items in the Swedish negotiation: the Älvsjö-Fridhemsplan metro, the Roslagsbanan line to City and the Spårväg Syd tram. The advance payment means that the projects will be brought forward, starting with the planning phase in 2020. For the City of Stockholm, the advance amounts to a total of SEK 223 million (price level at January 2016).

Committees with deviations – investment budget

The annual investment outcome is SEK 1,068 million lower than budgeted. Below is a statement from committees with large investment activities. City Development Committee The City Development Committee’s net investment expenditure amounts to SEK 3,277.9 million, which is SEK 283.2 million lower than budgeted. The deviation is explained by higher than planned investment income in the large projects. Expenditure is somewhat higher than budget. The City Executive Office notes that the forecast net expenditure for the projects Bygglogistikcenter Hjorthagen, Årstafältet stage 1, Årstastråket stage 2, Brandstegen/Bäckvägen and Packrummet exceeds the City Council’s decided budget by more than 15 per cent. The City Development Committee is encouraged to take measures to reduce the costs of the projects and, if necessary, to return to the City Council for revised implementation decisions. Real Estate Committee The Real Estate Committee’s investment plan amounted to a net SEK 2,758.9 million, after an increase of SEK 38.9 million through budget adjustments for climate and security measures during the year.

Figure 1

The Municipal Group’s financial position

Financial markets External borrowing and investments SEK 57,602 million External companies

City of Stockholm

Financial net assets SEK 12,258 million

Corporate Group The companies invested SEK 7,753 million The companies borrowed SEK 77,596 million

External lending SEK 17 million

The Real Estate Committee’s net investment expenditure amounts to SEK 2,377.3 million, which is SEK 381.6 million lower than budgeted. The deviation corresponds to 13.8 per cent of the adopted budget and is explained in part by the committee’s decision to expense the additional costs of two projects of SEK 134.2 million. The remainder of the deviation is mainly explained by postponed implementation decisions and other postponements for several projects such as the Stockholm Food Centre, Kulturhuset, the City Library and the acquisition of condominiums. The long-term investment plan for other properties was exceeded by SEK 120.1 million due to the implementation of projects that were in the final phase or which have been assessed in other ways as particularly important, such as projects to ensure the necessary regulatory requirements.

systems for pipeline tunnels in the city, a new event site in Kungsträdgården and some postponement of the investments financed by funds received for security and climate measures. The Transport Committee reports overruns for three major projects linked to the expansion of the cycling infrastructure. The forecast for the project Pedestrian and Cycle Path on Lidingövägen is SEK 84.0 million, which is SEK 9.0 million (12 per cent) over budget. The contract was completed in December 2019 and the committee is expected to decide on the final report in spring 2020. The outcome for theproject Cycle Path on Värtavägen is SEK 75.3 million, which is SEK 17.3 million (30 per cent) over budget. The committee decided on the final report on 24 October

2019. The forecast for project Expansion of Cycle Path on Ulvsundavägen is SEK 118.8 million, which is SEK 28.8 million (32 per cent) over budget. The contract was completed in the summer of 2019 and the committee is expected to decide on the final report in spring 2020. The Transport Committee has decided on an action plan on an improved basis for implementation decisions for investment matters. The action plan sets out a number of concrete measures that the committee intends to take in the areas production planning, calculation, quality assurance, risk management and control. Cemeteries Committee The Cemeteries Committee’s net investment expenditure amounts to SEK 54.0 million, which is SEK 130.6 million lower than budgeted. The deviation from the plan decided is mainly due to the fact that several of the projects could not start as planned during the year. The Järva cemetery project and the reconstruction of farm building 15 C have not been started due to appealed tenders. Ceremonial premises at Strandkyrkogården have been postponed due to delayed detailed planning work, a new burial plot area at Råcksta cemetery has been delayed due to water investigations showing that soil conditions are not good. Tests of local conditions will be required before implementation. The planned new winter water pipe at Skogskyrkogården has also been delayed.

PHOTO: REBECKA RYNEFELDT

For the project Rehabilitation and development of Östermalm market hall (revised implementation decision of the City Council on 19 February 2018), the committee presents a forecast for a budget overrun of SEK 380.0 million, corresponding to 38 per cent of the adopted budget. The Real Estate Committee is encouraged to continue taking measures to reduce the costs of the project.

The City of Stockholm’s Annual Report 2019

Economic and financial reporting

Transport Committee The Transport Committee’s investment plan amounted to a net SEK 1,115.3 million, after an increase of SEK 85.3 million through budget adjustments for climate and security measures during the year. The Real Estate Committee’s net investment expenditure amounts to SEK 933,0 million, which is SEK 182,3 million lower than budgeted. The deviation corresponds to 16.3 per cent of the adopted budget and is mainly due to the postponement of measures under the Greener Stockholm initiative, lower expenditure on reinvestment programmes for traffic signals, traffic safety measures, telecommunications

Economic and financial analysis About the Municipal Group The City’s financial statements include all the committees, i.e. the mainly taxpayer-funded activities, as well as the financial statements for financial management, which includes, among other things, the City’s central financing. The combined accounts, which are the municipal equivalent of consolidated financial statements, for the Municipal Group of the City of Stockholm include, in addition to the City’s activities, the activities carried out in the form of a limited liability company. The purpose of the combined accounts is to give an overall picture of the entire Municipal Group’s finances and commitments.

Profit for the year

After eliminating intra-Group balances, including dividends, the profit for the Municipal Group after taxes and net financial items amounted to SEK 3,156 million (3,083).

Surplus as at 31 December, SEK million 2019

2018

2017

2016

2015

3,156

3,083

3,446

5,407

2,606

Combined earnings for the year after financial income/expense for the Stockholms Stadshus AB Group amount to SEK 2,249 million (1,897). The Stockholms Stadshus AB Group’s allocations and taxes amount to SEK 391 million (301) and profit for the year amounts to SEK 1,858 million (1,596).

Depreciation

Planned depreciation of property, plant and equipment increased by SEK 352 million in 2019 and amounted to SEK 5,562 million (5,209). This increase in depreciation can be explained by the high level of investment in recent years, particularly in relation to hous-

ing. Depreciation has not increased more, despite high investment volumes, mainly because the investment is not yet completed and depreciation does not commence until completion.

Financial income and expenses

Net financial income/expenses for the Municipal Group were negative, amounting to SEK -377 million (-455). Financial results have been affected positively by the low interest rates.

Cash Flow Statement

Generally speaking, the financial cash flows of the entire Municipal Group are centrally managed through the City’s administration. Municipal companies have either receivables from or liabilities to the City. According to the finance policy for the City of Stockholm

PHOTO: LENNART JOHANSSON

Economic and financial reporting

The City of Stockholm’s Annual Report 2019

Municipal Group, the Group’s cash flows shall be offset against each other, and all external financing through loans and investment shall take place centrally.

Balance Sheet

Equity/assets ratio The equity/assets ratio shows equity in relation to the balance sheet total. Equity for the Municipal Group has increased by SEK 3,156 million to total SEK 127,141 million (123,986). The change in equity is attributable to the profit for the year of SEK 3,156 million. The balance sheet total amounts to SEK 224,784 million (211,764). This results in an increase of SEK 13,419 million in the balance sheet total. The Municipal Group’s equity/assets ratio amounted to 49 per cent including pension obligations (51 per cent). An equity/ assets ratio that is stable in the long term is important for providing the Municipal Group with good long-term solvency and thereby good financial manoeuvrability in the future. The table below shows the equity/assets ratio during the period 2015–2019. Equity/assets ratio for the Municipal Group (including pension commitments), per cent 2019

2018

2017

2016

2015

49.3

50.6

52.3

53.3

Investments

The Municipal Group’s gross investments have remained at a high level and in 2019 amounted to SEK 20,104 million (19,171). The gross investments for the Stockholms Stadshus AB Group have also remained at a high level and in 2019 amounted to SEK 12,858 million (12,582). The investment volume has increased in recent years and there were around 60 large projects over SEK 300 million at the end of the year.

economies of scale in financial management. This is achieved by way of, for example, a Group-wide account system, which allows all cash flows in committee and companies to be netted internally before the City of Stockholm funds the remainder via capital markets. In this way, the administration of the internal cash flows is made easier at the same time as delivering lower overall financing costs.

The municipal group’s equity/ assets ratio amounted to

49.3%

The basis for effective financing is good forecasts of the Group’s cash flows. The companies and committees that invest the most in the Municipal Group prepare both short-term and longer-term forecasts of their cash flows. These forecasts are a prerequisite for the internal bank to provide the Municipal Group with cost-effective financing.

profile of the debt portfolio are given in Figures 1 and 2 below. The City of Stockholm has a very high credit rating. This rating shall reflect the ability to honour both long-term and short-term payment obligations and financial commitments. The credit assessment is carried out by the credit rating agency Standard & Poor’s. The City of Stockholm has the highest possible rating for short and long-term borrowing, A-1+ and AAA, respectively. The rating is updated twice a year and was confirmed on 15 November 2019 with a negative outlook. For investors, this rating means that lending capital to the City of Stockholm comes with a very low risk. This enables the Municipal Group to obtain favourable borrowing terms.

The Municipal Group primarily borrows directly from the financial markets through various market programmes. This is done through certificates and bonds issued by the City of Stockholm. In addition to financing through the market programmes, borrowing occurs through the European Investment Bank (EIB), the Nordic Investment Bank (NIB) and the Council of Europe Development Bank (CEB). The nominal amounts used on the balance sheet date and maturity Figure 1

Market programme, millions

Programme size, local currency

Utilised, local currency

Utilised, SEK million

12,000

0 0

Municipality Certificates (MC), SEK Euro commercial paper (ECP), USD Medium term note (MTN), SEK Euro medium term note (EMTN), EUR

1,500

10,000

8,000

4,139

41,095

Other loan programmes, millions European Investment Bank (EIB), SEK

9,700

Nordic Investment Bank (NIB), SEK

5,000

200

100

1,057

Council of Europe Development Bank (CEB), EUR

Financial activities

Figure 2

Loan maturity distribution at 31 December 2019

50 % 40 % 30 % 20 % 10 %

ye a

rs 0 >1

ye a

–1 >9

–9

ye a

rs ye a

>7 –8

–7

ye a

–6

ye a

rs ye a

>4 –5

–4

ye a

rs ye a

>2 –3

–2 >1

The internal bank is responsible for supporting the core activities and safeguarding

ye a

The City of Stockholm’s Annual Report 2019

Economic and financial reporting

The Municipal Group’s loan needs are centrally managed by the City of Stockholm’s internal bank. The City of Stockholm has chosen to have a unified central finance function – the internal bank – which manages the aggregated risks, securing of financing, liquidity management, banking relationships etc. Central management also means a reduced financial risk and allows for better internal control. The finance policy sets out the objectives and guidelines for financing operations in the Municipal Group and identifies financial risks and how these should be managed.

About the City Profit for the year

The surplus for the year for the City amounts to SEK 2,728 million (SEK 3,176 million). Capital gains and sales of development properties constitute the largest part of the surplus, SEK 2,453 million. The largest sale relates to leasehold rights in different locations in the city to Stockholms Kooperativa Bostadsförening. Another major sale has been made in the Slakthus area. In 2019, the sale of development land has been less extensive and mainly took place in Hagastaden. Taxes and general government grants and equalisation have had a positive impact on earnings of SEK 312 million, mainly due to the municipalities receiving the so-called welfare billions, which was not known at the time of budgeting. Compared to 2018, the surplus is SEK 0.4 billion lower, partly due to a reduced dividend from Stadshus AB. Stockholm’s operations provide a surplus of SEK 224 million, of which SEK 46 million refers to the District Councils. Net costs, excluding items affecting comparability, have increased by 4.0 per cent (4.4) during the year, while tax income and general government grants have increased by 2.6 per cent (2.9). The development means that the city’s costs are growing faster than income and such a development is not sustainable in the long run. The surplus adjusted in accordance with the balanced budget requirement of the Local Government Act, less capital gains, shows that the City is meeting the requirement, as there is a surplus of SEK 1,006 million (2,613). According to the City’s investment strategy, gains from the sale of development areas must finance development activities, such as streets and parks. The surplus, when these gains are also deducted, is still positive and amounts to SEK 275 million. The surplus includes a dividend from Stockholm Stadshus AB of SEK 1,500 million. See Figure 1.

Operating income

Economic and financial reporting

Operating income amounts to SEK 12,340 million (SEK 12,298 million), a marginal increase compared to 2018. It is mainly parking and parking fine income that is increasing. Parking fines were increased during the year. The introduction of the Parking Plan has meant that areas in the suburbs have been subject to parking charges and charges in the inner city have been increased. The plan has only had full impact in 2019. Fees for letting and planning fees have also increased. 76

The City of Stockholm’s Annual Report 2019

Overall, government grants have fallen by seven per cent. Grants for the reception of refugees from the Swedish Migration Agency have decreased by over SEK 300 million as a result of a decrease in refugees. There was also a large decrease in 2018. Other government grants have also decreased apart from payments from the Swedish Public Employment Service for various types of labour market services, which have increased. Increased maximum rates have meant increased child care fees, but lower government grants.

Operating costs

Operating costs, excluding depreciation, amount to SEK 56,533 million (54,883), an increase of SEK 1,650 million or 3.0 percent (3.6). The rate of population increase has slowed, but is still high; 12,536 people in the past year. Inflation is 1.8 per cent compared to December 2018. Some of the larger cost items are described below. Grants and transfers The cost of grants and transfers amounts to SEK 2,339 million (2,314), an increase of 1.1 per cent compared with the previous year. Financial assistance has increased slightly to SEK 953 million (947 million). The national standard was increased by two per cent in 2019, while the number of households with assistance has decreased slightly. Of the adult assistance recipients in December, 45 per cent (42) were unemployed. Compensation to the Swedish Social Insurance Agency for personal assistance has increased again. Grants to associations are also increasing. External providers The cost of external providers amounts to SEK 19,278 million (19,136), a cost increase of 0.7 per cent (1.3 per cent), i.e. a lower rate of increase than inflation. In the operational area other education, almost 70 per cent of the activities are carried out by external contractors, while for the operational areas covering elderly care, care for people with disabilities, upper secondary school education and infrastructure, half or more than half of the operations are placed with external contractors. Compared with the previous year, the proportion of activities carried out by external performers has decreased Figure 1

in terms of individual and family care due to a decrease in the reception of refugees. For pre-school activities, the proportion of procured activities has increased slightly. More than a third of the City’s total expenses comprise contractor expenses. Premises costs After personnel costs and contract costs, premises costs are the City’s third largest cost item at SEK 4.9 billion. A growing population has made demands on school and preschool premises. A growing group of elderly people means a need for nursing homes. Most of the premises are owned and managed by the Stockholm Stadshus AB Group. Premises costs are one of the cost items that have increased most since the previous year, 5.1 per cent. Educational premises are by far the largest item and also show the largest increase, 9 per cent compared to 2018. Individual small items have increased more, but not overall. (The item includes only external premises and not the premises that the City has in-house: administrative buildings, sports facilities etc.) Consultancy costs Expenses for consultants amount to SEK 1,207 million (1,228), a decrease of SEK 21 million. The decrease is mainly due to a fall in the costs of IT consultants. Among other things, the introduction of a new supplier for joint IT services has been postponed, which has contributed to the decrease. IT consultants make up almost half of the consultancy costs. The costs of premises and building consultants have increased. Personnel costs Personnel costs have increased by 3.7 per cent (5.8) in 2019. The number of full-time workers has increased during the year by 562 (1,415) or 1.3 per cent. The rate of increase has thus slowed. The increase in full-time workers is a net effect of readmitted activities in elderly care and cutbacks in other activities. The average salary increase during the year amounts to 3.2 per cent. The increase in personnel costs is held back by a significant decrease in other personnel costs, including for courses and conferences. When personnel are used in direct investment

Surplus as at 31 December, SEK million 2019

2018

2017

2016

2015

Change in equity

2,728

3,176

2,361

4,643

1,924

Of which all capital gains

2,453

2,552

4,163

4,426

1,426

activities, personnel costs are transferred to asset accounting, thereby reducing the city’s personnel costs in operations. This item has increased by 15 per cent in 2019. The premium for the group sickness insurance agreement, which is included in personnel costs, has been omitted in 2019 as in recent years due to positive returns on managed assets. Education is the activity that is increasing most while individual and family care continues to decline. There is also an increase in the business and elderly care areas. The cost of temporary agency staff is reduced. Sick pay expenses have increased by 4.2 per cent (7.5) during the year. The cost of shortterm sick leave has been higher throughout the year than in 2018. Employer’s contributions have been slightly lower than expected. For older workers, the special payroll tax was removed at mid-year. For very young employees, employer contributions decreased on low annual incomes from August onwards – unbudgeted changes.

Items affecting comparability

The income affecting comparability amounts to SEK 2,525 million (3,042) and the costs affecting comparability amount to SEK 592 million (1,601). The income pertains to sales, of which development income amounts to SEK 804 million and capital gains to SEK 1,721 million. Sales of development properties have decreased significantly compared to 2018, partly due to the market situation. Development areas have been sold in Hagastaden, among others. Other sales include sales to Stockholms Kooperativa

The City’s equity/assets ratio amounted to

35% Bostadsförening of land rights and a large sale in the Slakthus area. Sold development properties’ book value amounting to SEK 72 million (501) is recognised as a cost affecting comparability. Consumption of a mortgage of equity conducted in the 2017 accounts is recognised as an item affecting comparability and totals SEK 415 million (661). The funds have been used for IT costs, mainly for the implementation of a new procurement for a common IT platform and the modernisation of social systems. The surplus from the burial activities of SEK 11 million has been allocated to provisions. The provision for the bus terminal at Slussen has been increased by SEK 94 million due to increasing costs.

Depreciation

Depreciation for the year amounts to SEK 1,579 million (1,448), an increase of SEK 131 million. Depreciation according to plan has increased by 9 per cent due to a higher investment volume in recent years. Implementation of component depreciation with effect from 2015 has meant that planned

maintenance has been moved from the income statement to the investing activities. Over time, this is providing an increase in depreciation, while the maintenance costs have decreased in the income statement.

Tax, government grants and equalisation compensation

Tax income for the year amounts to SEK 49,185 million (47,714), which is an increase of 3 per cent. In 2019, tax was reduced by SEK 0.16, which corresponds to approximately SEK 0.4 billion. The net for general government grants and equalisation amounts to SEK -4,067 million (-3,745), a cost increase of SEK 322 million. With effect from 2016, the equalisation ratio for income equalisation has been raised from 60 to 85 per cent of the county tax rate in the range 115 to 125 per cent of the average tax capacity, which has sharply increased Stockholm’s charge. Stockholm’s tax base is growing more rapidly than the rest of the country, which is producing greater tax income but also a higher income equalisation

PHOTO: LENNART JOHANSSON

Economic and financial reporting

The City of Stockholm’s Annual Report 2019

fee. In 2019, the income equalisation fee has increased by SEK 196 million. The increase in cost equalisation for the year, SEK 302 million, is a result of increased differences in population structure compared to other municipalities. The fee for LSS equalisation has increased by SEK 197 million in 2019. The adjustment contribution increases by SEK 526 million. From 2019 onwards, the so-called welfare billions that depend on the size of the population are reported in the adjustment item. Compensation to municipalities for further reduced taxes for pensioners also has an impact.

had not previously operated, known as readymade companies. These ready-made companies are then managed as dormant companies pending final approval by the City Council and Atrium Ljungberg’s subsequent access. With the completion of the transaction on 11 June 2019, the City sold the companies to Atrium Ljungberg.

Financial income and expenses

Balance Sheet

Net financial income/expense includes the net interest income/expense for the City as well as other financial income and expenses. The City’s net financial income/expense amounts to SEK 1,546 million excluding items affecting comparability (1,856), of which share dividends from Stockholms Stadshus AB make up SEK 1,500 million (1,700). Net interest income for the City is positive, amounting to SEK 301 million (335). The City manages the Group’s interest-based borrowing, including compensation for overheads. The City’s loan debt increased by SEK 9.6 billion during the year. Interest rates remain low and hold back interest costs despite the increased debt. Since the companies’ interest payment to the City follows the level of the interest expenses, net interest changes are moderate. The item financial income and expenses also presents the cost for the hedging of the pension liability, which amounts to SEK 220 million (147).

Economic and financial reporting

The City acquired 13 companies in 2019, following a decision by the City Council in the second four month report for 2018. The reason why the City acquired the companies is linked to the City of Stockholm’s business with Atrium Ljungberg for the Slakthus area. The transaction was based on the letter of intent between the city and Atrium Ljungberg presented in August 2018. The deal means that Atrium Ljungberg will continue to develop parts of the Slakthus area through acquisitions, land allocations and options and take responsibility for the tenants who need to be evacuated. The transaction was in the form of a share transfer. A share transfer allows the City to impose long-term conditions on Atrium Ljungberg. For example, these may be that they are not allowed to sell properties within a certain period of time. The transfers may be proposed to take place in company form because this refers to longterm cooperation with several constituent parts. The City therefore needed to acquire a number of limited liability companies that 78

The City of Stockholm’s Annual Report 2019

Indexation in respect of the price change for provisions regarding the Sweden Negotiations and bus terminal at Slussen, amounting to SEK 77 million (67), is recognised as a financial cost affecting comparability. The City’s balance sheet total has increased by SEK 11,653 million to SEK 170,714 million (159,061). The City administers borrowing for the City’s companies. The net receivable from the companies has increased by SEK 7.2 billion, which has had an impact on the balance sheet total. The City’s investment activities, tangible non-current assets and development properties contribute SEK 5.3 billion to the increase in the balance sheet total. External loan debt has increased by SEK 9.6 billion, of which increased lending to companies accounts for SEK 7.2 billion. The City’s investment activities could not be covered by earnings and depreciation during the year, but the net assets have been claimed, which means that the companies’ loans from net assets had to be replaced by external loans of SEK 2.4 billion. Assets Non-current assets have increased by SEK 5,8 billion to a total of SEK 87,719 million (81,960). Tangible non-current assets is the main item that has increased, although purchases of tenant-owner apartments totalling SEK 0,1 billion also increases financial non-current assets. Investments total SEK 7.4 billion, depreciation totals SEK 1.6 billion and the book value of sales of non-current assets amounts to SEK 0.4 billion. A transfer of development assets from classified as current assets to non-current assets of SEK 0.4 billion has been made during the year due to a revaluation of what will be sold. The volume of investments has increased by SEK 2.5 billion or just over 50 per cent in the last five years. Investment income in the form of fees and contributions is recognised gross on capitalisation, so that the income is entered as a liability and taken up as income as the facility in question is used. This investment income amounts to SEK 230 million (210). From 2020, changes in accounting policies mean that only public contributions will be recognised gross at the time of activation. A reclassification of non-public contributions

PHOTO: LENNART JOHANSSON

will thus be carried out in 2020 with a resultant effect on earnings.

Current assets

Current assets have increased by SEK 5,895 million to total SEK 82,995 million (77,101). The City’s receivables from the Corporate Group have increased by SEK 6,280 million. There have been minor reductions in accounts receivable, among other things. The City is trying to minimise liquid assets due to the present interest rate situation.

Equity and liabilities

Equity has increased by SEK 2,728 million to SEK 75,664 million (72,937). In the 2017 accounts, equity was mortgaged for future investments during 2018–2020. Of the mortgaged funds, SEK 415 million has been used during the year. The funds have mainly been used for IT investments. The largest of these is the implementation of a procurement for operation of the common IT platform and the modernisation of social systems. For 2020, some IT investments have been completed while new ones have been added. In financial statements for 2019, previous notations are kept when the projects are not completed and some new notations are added. The remaining notations total SEK 1,223 million. The mortgages have been made on the grounds that they represent an investment in the future. Figure 1 shows which projects are affected and how long the notation is applicable. Figure 1

Non-current liabilities increased by SEK 7,045 million to SEK 48,137 million (41,093). The increased need for loans has been met through bond loans as well as promissory note loans. The City’s large volume of investments has meant that the City has had to use part of the assets and thus additional loans have had to be raised to pass on to the Stockholm Stadshus AB Group. Loans which fall due for payment within one year are classified as short-term loans. For further analysis see above under the heading Financial activities. Total current liabilities have increased by SEK 1,377 million to SEK 28,144 million (26,767). Short-term loans have increased by SEK 1,780 million. In 2019 there are no other short-term loans, but the increase is caused by the use of SEK 749 million of overdraft facilities and the short-term part of long-term debt having increased. The City’s Group companies have bank overdraft facilities in relation to the City. When these have a positive balance, a current liability arises for the City. This liability has decreased by SEK 924 million during the year.

Equity/assets ratio

The equity/assets ratio shows equity in relation to the balance sheet total. This indicator is reported including the City’s contingent liabilities regarding pension commitments. The equity/assets ratio stands at 35 per cent (35). The change is affected by an increased balance sheet total.

Mortgaged funds in financial statements 2019

IT investment

SEK million

Available mortgage until 2020 Joint IT service (GSIT 2.0)

140

School platform

Document management system E-dok

GDPR – General Data Protection Regulation

Secure digital communication

Stockholms Informations och Kommunikations Teknik (SIKT), start phase

Available mortgage until 2021 . Stockholm - development City website

Decision support

Available mortgage until 2022 109

Modernise social systems

447

Stockholms Informations och Kommunikations Teknik (SIKT), phase 1

140

Joint planning system, City of Stockholm

Time and scheduling system

Total

986

Available mortgage until further notice Funds for skills development

Social investments

197

The City of Stockholm’s Annual Report 2019

Economic and financial reporting

Smart City

Leasing agreements

The value of the City’s future commitments for operating leases amounts to SEK 12,001 million in the financial statements for 2019, of which 84 per cent (SEK 10,036 million) relates to agreements with the City’s companies. Virtually all lease agreements relate to leases for premises. Agreements with external landlords are spread over a considerable number of landlords, resulting in a low level of risk. Only non-cancellable leases with a term of more than three years are recognised. Lease agreements for the City’s IT suppliers are not included as they do not meet the conditions, but constitute a major cost to the City. The cost for 2019 amounts to SEK 703.7 million (651.8). With effect from 2019, a new accounting recommendation from the Council for Municipal Accounting applies to lease agreements. The rules on financial leasing have been amended so that financially leased vehicles must be recognised in the balance sheet. Vehicles leased from Volkswagen Finans AB meet the conditions and are reported from 2019 as non-current assets. The extent is small, SEK 22.5 million,in future commitments.

Economic and financial reporting

The City of Stockholm’s Annual Report 2019

Sales

The City’s sales income during the year amounted to SEK 2,942 million, which means a net gain for the City of SEK 2,453 million. A major sale of leasehold rights to the Stockholm Cooperative Housing Association (Stockholm Kooperativa Bostadsrättsförening) has been carried out, as well as a sale in the Slakthus area. Sales of development properties have been significantly lower than in the previous year, partly due to a slowing market. Swedish Municipal Housing Companies Act The Swedish Municipal Housing Companies Act has given the City the opportunity to finance projects within the framework of the City’s responsibility to provide housing by way of a special dividend. These projects include measures that promote integration and social cohesion. During the years 2012–2014, the City has received additional dividends totalling SEK 3,020 million for this purpose. These dividends have been earmarked for projects in prioritised areas in the suburbs. During the year, SEK 213.1 million has been utilised. The dividend has financed projects for housing in Bromsten, Skärholmen and Rinkeby, as well as the

sports investments Solberga Bollplan and Gubbängens Sportfält. In total, 54 per cent of the earmarked funds have been used.

Contingent liabilities and guarantees

The City’s commitments regarding contingent liabilities and guarantees amount to SEK 485 million, an increase of SEK 2018 million. The guarantees refer to non-profit organisations, as well as to foundations and companies. The City has also guaranteed a small part of pension commitments for the City’s majority-owned companies and certain foundations. The majority of these pension commitments have been extended to S:t Erik Livförsäkring AB. The overall risk of the City’s guarantees is deemed to be low.

Cash Flow Statement

Total cash flow is negative and amounts to SEK 792 million. The City’s liquid assets are negative on the balance sheet date. The City is trying to minimise liquid assets due to the present interest rate situation. Cash flow varies according to the assessed need for cash and cash equivalents. On the balance sheet date, the City had used its overdraft and, together with the committees’ cash etc., the net balance amounted to SEK -742 mil-

The City’s sales income amounted to lion. At the same time last year, the City had liquid assets of SEK 50 million.

SEK

2,942

Cash flow from the operation comprises earnings for the period, excluding capital gains/losses, and the adjustment of items that do not affect liquidity in the form of depreciation and provisions. Cash flow from the operations amounts to SEK 2,750 million (3,054).

million

Cash flow from the change in current receivables/liabilities and inventories depends primarily on the change in receivables/ liabilities in relation to the City’s companies. The total change is negative, SEK -5,709 million, of which a higher net receivable from the companies accounts for SEK -7,206 million. In 2019, the companies continued to have a high volume of investments, which gives a need for borrowing. The increase in short-term loans and short-term liabilities is offsetting this change.

ture are affecting the cash flow by SEK -400 million.

heads. No capital injections, straight loans or loss-covering grants are provided.

Limited deductions for intra-Group interest

Cash flow from the City’s investing activities is negative, SEK -4,492 million, due to an increased investment volume of SEK 7.4 billion. Sales have kept the negative cash flow down, but somewhat less than in previous years. Payment of grants to state infrastruc-

The City has increased its non-current liabilities to cover the companies’ borrowing requirements, SEK 7,059 million net. The City’s interest-bearing assets have fallen by SEK 2.5 billion due to the City’s increased investment volume, which was not covered by earnings and depreciation during the year.

Transparency Directive

PHOTO: LENNART JOHANSSON

The Swedish Act on Transparency for Certain Financial Obligations etc. places certain requirements on accounting in publicly owned companies by way of requiring open, separate accounting. The aim of the Act is to implement the European Commission’s Directive 08/723/EEC in Swedish law (Transparency Directive) to counteract unfair competition. The Act applies to publicly-owned companies where the government, municipalities or county councils have a direct or indirect controlling interest through ownership, financial involvement or the rules that apply for the company. Economic or commercial operations carried out in the form of administration are also covered by the concept. Under the provisions of the Act, publicly-run companies with an annual net turnover in excess of EUR 40 million during each of the past two fiscal years must apply these rules on transparent accounting.

As regards the Swedish Tax Agency’s review decision for the income years 2014–2015, the City of Stockholm and the Stockholm Stadshus AB group wish to have a judicial review of these and the decisions have therefore been appealed. Since the administrative court’s and the court of appeal’s judgments have been in line with the Tax Agency’s decision, the company has appealed against the judgment of the court of appeal and applied for leave to appeal to the Supreme Administrative Court. The City of Stockholm’s Annual Report 2019

Economic and financial reporting

The companies covered by the Directive and the obligation to supply information are Stockholms Hamn AB, STOKAB and Stockholms Stads Parkerings AB. Within the City, financial activities are carried out in the finance department of the City Executive Office. All lending and borrowing to and by the City’s companies take place through this department. All companies are offered loans and investments on terms equivalent to the Municipal Group’s external financing cost, with a margin for any compensation for over-

At the end of 2012, the Swedish Parliament decided on further restrictions to deductions for intra-Group interest payments, primarily with the aim of preventing capital flight abroad through tax planning. The Swedish Tax Agency has applied the new regulations from 2014 onwards and for the income years 2014–2017 has taken a final review decision whereby a limited part of the interest costs are considered to be deductible. Since the decision, the City of Stockholm and the Stockholms Stadshus AB Group have sought a decision on how the City’s companies should act in relation to the Swedish Tax Agency’s interpretation. The City of Stockholm and the Stockholms Stadshus AB group consider that the interest expenses should be deemed to be fully deductible for affected companies within the Group. The companies concerned have also claimed that interest expenses are deductible in the income declarations relating to the income years 2014–2018 and have already reserved costs for those years in line with the Swedish Tax Agency’s decision. In the financial statements for 2018 too, costs have been reserved through an assessment of how the principle used by the Swedish Tax Agency affects the income year 2018. For the 2019 financial statements, all interest expenses have been assessed as deductible in accordance with the new legislation on the deduction of interest applicable from 2019 onwards.

Accounting principles Act on Municipal Bookkeeping and Accounting The financial statements have been prepared in accordance with the Act on Municipal Bookkeeping and Accounting (SFS 2018:597) and the recommendations of the Rådet för kommunal redovisning (RKR – the municipal financial reporting board). Depreciation The City applies straight-line depreciation, whereby an equal amount is depreciated each month over the asset’s useful life. Assets such as land and art objects, for example, are written off without depreciation being carried out. Component depreciation is applied as of 2015. Component division is performed during calculation and capitalisation. No requirements exist for component division during the construction period. Component division is performed based on natural components where the replacement period/maintenance period is crucial to what is counted as natural. In the event of the replacement of components, the earlier component is normally presumed to be finally depreciated and no disposal is conducted. Clear exceptions to this rule include the replacement of lifts, for example. If the replacement of the component is performed after a time interval that substantially differs from the useful life, disposal must be applied. Once a year, zeroed and replaced components are disposed of. The City has obtained guidance from the RKR paper on depreciation when it comes to assessing the useful life of assets.

Economic and financial reporting

Valuation principles Non-current assets are recognised at acquisition value. The acquisition value includes costs for dismantling and removing the previous asset and restoring the site if this is a prerequisite for the new asset. Non-current assets are assets with a useful life of at least three years and a value of at least one base price amount. In terms of investments in another party’s property, if the property belongs to the municipal companies Skolfastigheter i Stockholm AB and Micasa Fastigheter i Stockholm AB, the investment expenditure must total at least SEK 0.5 million to be counted as an investment. A decision regarding this exception was made by the City Council on 3 November 2008 and includes minor projects and construction activities. The exception is considered negligible in terms of the sums involved and does not, therefore, affect the financial statements to any significant extent.

The City of Stockholm’s Annual Report 2019

Time of capitalisation for an asset An asset is normally capitalised and begins to depreciate when it is brought into use. Unless all expenses have been received or possible to estimate with reasonable certainty, the capitalisation period may be postponed by a maximum of six months. Current assets are recognised at the lower of cost and fair value at the end of the reporting period. With effect from 2019, trade payables in foreign currency are calculated at the exchange rate on the balance sheet date. No recalculation of the comparison period has been made where the booking for 2019 is of little value and where accounts payable for the comparison period in foreign currency had little extent. For the City, the change in the law affects only these liabilities, as borrowing in other currencies is always hedged. Intangible assets. The City of Stockholm does not currently recognise any intangible assets. According to the City’s accounting rules for investments, restrictiveness should be applied when an asset is classified as intangible to avoid overvaluation on the asset side. Up to and including 2019, no assets are deemed to meet the requirement for intangible assets. Impairment of assets The impairment of assets has been conducted in accordance with the recommendation RKR R6. The city applies the limitation that the value of an asset shall amount to at least SEK 1 million in order to carry out an impairment test. Impairment is performed when the book value exceeds the recoverable value by at least SEK 0.5 million and the change is deemed to be permanent, where permanent is defined as a minimum of five years. Leasing In accordance with RKR’s recommendation RKR R5 Leasing, the City recognises forthcoming lease contract expenses. Financial leasing is recognised in the balance sheet if the conditions for an investment are met. For the City, this applies in principle only to leased vehicles. Operating leases are reported within the line if the amount limitations that the total expenditure exceeds SEK 0.5 million and the annual cost exceeds SEK 0.2 million are met. According to the recommendation, recognition must occur if the lease period exceeds three years. The City’s

IT services agreement is mentioned in the note on operational leasing on the grounds that this financial commitment is substantial, even though the time condition is not met. Leased vehicles have not previously been shown in the balance sheet since, according to the previous recommendation, exceptions could be made if the time scale was no more than three years and the lease was not of material extent. This exception has now been removed, which is why the City’s financially leased vehicles are reported in the balance sheet, i.e. a change in accounting principle. The comparison year has not been corrected as the extent must be considered marginal:

PHOTO: MATTIAS PRODROMOU DAHLQVIST

in 2019 SEK 22.5 million in future commitments. Sale and purchase of non-current assets As a general rule, in the case of the sale and purchase of non-current, the transaction is recorded on the date of access.

Classification Short-term receivables and liabilities are due within 12 months of the balance sheet date.

Boat charges, which were incorrectly classified as investment income and recognised as liabilities, have been corrected in 2019 and recognised as income. The scope, SEK 19 million, must be regarded as small in relation to the cityâ&#x20AC;&#x2122;s turnover, so that the comparison

period has not been corrected. Development properties intended for sale are recognised as current assets. Holiday pay liability and unpaid overtime are recognised as liabilities according to their status on 31 December 2019. Financial activities Financial activities within the Municipal Group are based on the Cityâ&#x20AC;&#x2122;s finance policy, which is established each year by the City Council. Foreign loans are measured in accordance with principles for hedge accounting. The City uses currency futures and/or interest and currency swaps to hedge The City of Stockholmâ&#x20AC;&#x2122;s Annual Report 2019

Economic and financial reporting

Borrowing costs Borrowing costs are recognised in the period to which they are attributable and are not included in the cost of assets.

Long-term receivables and liabilities are due after more than 12 months after the balance sheet date. Exceptions are investment grants and street cost compensation, which are recognised as long-term liabilities as they are non-cash items. The City recognises all investment grants and street cost compensation as liabilities under the option in RKR R2 for the financial year 2019.

positions in the event of currency and interest rate fluctuations. Purchases or sales of financial assets or liabilities are recognised on the settlement date. Financial current assets and current liabilities are valued at cost. Any issue costs and similar transaction costs are accrued in accordance with the straight line method. In respect of premiums and discounts on bonds, amounts of less than SEK 1 million are also accrued. The City currently has no investment assets and therefore no assets to be accounted for at market value. The possibility of revaluation of financial assets has been removed by the Act on Municipal Bookkeeping and Accounting. The City has not previously made any writeups and no reversal needs to be done. Items affecting comparability Gains and losses and non-recurring items that are not part of the normal operation are recognised as items affecting comparability. This includes development income and expenses, which are recognised gross according to applicable regulations, book value as cost and sales income as income. According to a City Council decision in 2014/2017, a mortgage of equity has been produced for various measures. The City has chosen to recognise the above items as items affecting comparability if they amount to at least SEK 0.1 million. Provisions

The City makes provisions, in addition to pension provisions, for the effects of major reorganisations, if applicable, and commitments within the field of infrastructure, for example. In the event of provisions, direct income recognition is applied. The items are recognised as items affecting comparability.

Economic and financial reporting

Pension commitments The City’s pension provision is recognised partly as a provision in the balance sheet and partly as a contingent liability. Pensions earned up to and including 1997 are recognised as a contingent liability. The individual pension entitlement earned by the City’s staff during the year is recognised in the balance sheet as an accrued expense. The pension provision is corrected for insured commitments, which have a negligible extent. Commitments regarding latent survivor’s pension are included in liabilities and contingent liabilities. Pension liabilities for employees of the companies belonging to the municipal group are reported in accordance with K3. Obligations for special agreement/retirement pension that are not regulated under RIPS are calculated at present value- with a calculation rate of 2.2 per cent. For agreements with a coordination clause, the calculation is based on the conditions known 84

The City of Stockholm’s Annual Report 2019

at the time of the closing date. If nothing else is known, the calculation is made on the basis that no coordination will take place.

The combined accounts are drawn up in connection with the second four-monthly report and annual financial statements.

The calculation of the pension provision is made in accordance with the Guidelines for pension provision calculation (RIPS 19). The basis for the calculations is the KAP-KL pension agreement. Personnel born in 1986 or later are subject to the AKAP-KL pension agreement. The agreement is defined contribution and thus no provision is made for pensions

Combined accounts, consolidation principles The majority of the City’s companies are in the Stockholms Stadshus AB Group, which is wholly-owned by the City. The financial statements of the Stockholms Stadshus AB Group are used as the basis for consolidation for the combined financial statements. All internal transactions and internal profits and losses of material importance have been eliminated. The subsidiary S:t Erik Livförsäkring AB in the Stockholms Stadshus AB Group recognises financial instruments at fair value. Under the new rules for municipalities in 2019, this is compatible with the municipal regulations and no adjustment is required. The previous adjustment for the comparison period has thus been removed.

Receivables/liabilities from/to Group companies The City manages borrowing and lending to and from the municipal companies. The companies have accounts in the City’s group structure with a few exceptions. Depending on the balance, a receivable or liability is entered for the company in question. Two companies have their liability with Stockholms Stadshus AB instead of directly with the City. Combined accounts General Under the Act on Municipal Bookkeeping and Accounting, the City of Stockholm’s annual and interim financial statements shall also include operations conducted by other legal persons within the Municipal Group and combined accounts must be prepared. The aim of the combined accounts, which are the local government equivalent in Sweden of a corporation’s consolidated financial statements, is to provide a comprehensive view of the operations and financial position of the City’s committees, limited companies and joint authorities. The combined accounts have been prepared in accordance with RKR R16 Combined Accounts. The City’s committees have been consolidated in proportion with the City’s directly and indirectly wholly and partly-owned companies in which the City has at least a significant influence. In 2019, SHIS Bostäder is also included in the combined accounts as they are estimated to be a not insignificant part of the municipal group’s operations. The comparison period has been adjusted. Differences in accounting principles between the companies and the City may arise due to differences in legislation and recommendations applied for the City and companies respectively. In the combined accounts, effects of significant importance due to differences between accounting principles for companies and the City have been adjusted based on local government accounting principles.

Until 2018, the combined accounts have been drawn up mainly according to the acquisition method. From 2019 onwards, the proportional method shall be used, i.e. only the owned proportion shall be included, not 100 per cent. For Stockholm, this has meant a change for the companies Stadsholmen, Stockholm Vatten AB and Kapellskär, which are now only included with respect to owned shares. The comparison year has been adjusted. The jointly owned company AB Stockholm Exergi is consolidated using the equity method. The change towards using the proportional consolidation method for AB Stockholm Exergi has been made as it is judged to give a more accurate picture of the holding, since the City does not have determining influence. Stockholm Exergi operates on a commercial basis and, with splitting, the various items in the accounts would have been dominated by the part from Stockholm Exergi. Application of certain accounting principles in the City of Stockholm

Development properties Development properties intended for sale are recognised as current assets for all accounting year ends. Capitalised assets are only intended to be divested in exceptional cases. This affects construction, extension and conversion work in progress, which is not capitalised. The part of these developed assets that is intended for sale is booked as a current asset at the end of the period. In the event of sales, book value is recognised gross as an expense and the sales consideration as income.

Definitions f Non-current

assets are assets intended for continuous use in operations. They may be intangible (e.g. goodwill), tangible (e.g. buildings) or financial (e.g. shares). f Depreciation/amortisation according to plan is the allocated total expenditure for the parts of a non-current asset. The cost is distributed over the number of years that the asset is used in the operation. No depreciation is applied to assets such as land and art. f Provisions are legal obligations attributable to the financial year or previous financial years; their existence at the end of the reporting period is certain or probable, but the amounts payable or the date on which these amounts will be paid is uncertain. f The balanced-budget requirement is linked to the income statement. Pursuant to the Local Government Act, the budget must be prepared so that income exceeds expenses (the requirement for balanced finances in chapter 11 section 5 of the Local Government Act). If a deficit is recognised, i.e. if costs exceed income in any particular financial year, the deficit must be eliminated within three years after it

was recognised. The basic principle is that capital gains are excluded from income in the reconciliation with the balanced-budget requirement. The sale of development assets is counted as current assets and may therefore be excluded. f The balance sheet is a summary of assets, equity, provisions and liabilities at the end of the reporting period, i.e. on the last day of the accounting period. f Commercial papers may be issued by municipalities or companies, for example. Loans may be raised through the issue of promissory notes with maturities of up to one year. f Equity is the difference between assets and liabilities. It shows the percentage of assets not financed through debt. f Elimination involves the removal of internal items so that income, costs, receivables and liabilities only contain items external to the City. f Euro Commercial Paper (ECP) are certificates with durations of up to one year and can be issued in several different currencies.

f Euro

Medium Term Notes (EMTN) are promissory notes in the form of bonds with maturities over year. These notes can be issued in several different currencies. f Obligation â&#x20AC;&#x201C; a commitment originating from a contract, legislation or other legal basis. f The cash flow statement shows inbound and outbound payments regarding the Cityâ&#x20AC;&#x2122;s various operations. The sum of these payments comprises the total cash flow for the year. f Net financial items are the difference between financial income and financial expense in the income statement. f A Medium Term Note (MTN) is a loan that can be raised through the issue of promissory notes in the form of bonds with maturities of at least one year. f Current assets are assets that are not held for continuous use, but are consumed in conjunction with the production of products or services or are otherwise used in the operation. f The income statement is a summary of income and costs resulting in a surplus or deficit for a specific period.

PHOTO: GETTY

Economic and financial reporting

The City of Stockholmâ&#x20AC;&#x2122;s Annual Report 2019

Notes Internal items are eliminated Separate accounts are prepared for the activities of the Cemeteries Committee, Stockholm Vatten AB and Stockholm Avfall AB and can be found in all financial matters during the year, such as the budget case, the financial statements case. The Cemeteries Committee is reported separately under the City of Stockholm, while Stockholm Vatten AB and Stockholm Avfall AB are reported separately under the corporate group Stockholm Stadshus AB. With effect from 2019, the municipal group is consolidated using a proportional method except Stockholm Exergi AB, which is con-

solidated with the equity method. The City owns part of Stockholm Exergi AB, which operates on a commercial basis and with splitting, the various items in the accounts would have been dominated by the Stockholm Exergi AB part because of the size and nature of the company. The consolidation method is thus changed in 2019 for Stadsholmen, Stockholm Vatten AB and KapellskĂ¤r, which were previously consolidated according to the acquisition method. The consolidated accounts are supplemented by the SHIS Foundation housing. The comparison period is adjusted for the changes.

PHOTO: LENNART JOHANSSON

Economic and financial reporting

The City of Stockholmâ&#x20AC;&#x2122;s Annual Report 2019

Notes to the income statement NOTE 1 Operating income SEK million

The City

The Municipal Group

31/12/2019

31/12/2018

31/12/2019

Tariffs, fees etc.*

5,307.2

5,040.3

10,285.2

9,856.6

Rents, site leaseholds

4,163.3

4,165.6

11,744.8

11,310.0

Government grants**

2,825.1

3,039.5

3,070.7

3,255.1

44.5

52.2

44.5

52.2

12,340.0

12,297.6

25,145.2

24,473.9

EU grants Total operating income

31/12/2018

* This amount includes correction of errors regarding boat charges in 2019 of SEK 19.1 million. ** Contributions are accrued according to consumption if the contribution is conditional and liable for repayment. Standard amounts for the reception of refugees are accrued according to consumption over a maximum of three financial years.

NOTE 2 Income affecting comparability SEK million

Capital gains from sales Sale of development properties* Total income affecting comparability

The City 31/12/2019

The Municipal Group 31/12/2018

31/12/2019

31/12/2018

1,721.2

551.9

2,278.8

1,846.0

803.8

2,489.7

803.8

1,280.9

2,525.0

3,041.6

3,082.6

3,126.9

* Sales of development properties are recognised gross.

NOTE 3 Operating costs

The City

The Municipal Group

SEK million

31/12/2019

31/12/2018

31/12/2019

31/12/2018

Materials and services purchased etc.

-4,691.8

-4,446.9

-11,670.4

-11,285.4

Housing allowance, financial assistance and other support

-2,339.4

-2,314.3

-2,339.4

-2,314.3

-949.6

-947.3

-949.6

-947.3

-19,278.4

-19,135.6

-19,530.0

-19,386.4

of which maintenance/income assistance Contracts and purchase of operations Premises costs Salaries*

-4,861.8

-4,624.4

-1,717.3

-1,490.3

-17,234.6

-16,536.3

-19,037.2

-18,269.6

Employer contributions and insurance agreements

-5,336.0

-5,137.5

-5,866.7

-5,678.6

Pension expenses**

-2,794.5

-2,576.7

-3,068.3

-2,853.0

of which payment of pensions

-979.4

-933.8

-979.4

-933.8

of which pension fees

-826.6

-806.6

-826.6

-806.6

of which occupational pension insurance fees

0.0

-0.1

0.0

-0.1

of which special payroll tax

-432.3

-428.3

-432.3

-428.3

of which changes in pension provision incl. employer’s contribution

-555.9

-407.5

-555.9

-407.5

-10.1

-105.8

-164.0

-171.3

-386.2

-302.4

Other personnel costs*** Tax corporate accounting***** Disposals*****

-6.5

-5.2

-8.4

-8.3

-56,553.1

-54,882.5

-63,787.9

-61,759.6

Current tax

-192.7

-271.1

Deferred taxes

-157.9

30.1

Tax attributable to interest deduction limitation

-35.7

-61.4

Total tax

-386.2

-302.4

Total operating costs Tax corporate accounting*****

* Hourly pay, extra pay for inconvenient working hours, overtime including employer’s contribution are allocated to a particular period. ** Interest and basic-amount indexation for the pension provision, including employer’s contribution, is entered under financial expenses. *** Of which SEK +353 million2019, SEK +306 million 2018 capitalised in-house work. ***** Disposals are moved from depreciation to operating costs. Accounting according to practice.

The City of Stockholm’s Annual Report 2019

Economic and financial reporting

Note: amounts in the tables are rounded and so do not add up exactly.

NOTE 4 Cost of accounting audit SEK million

Accounting audit part of costs

NOTE 5 Costs affecting comparability SEK million

The City 31/12/2019

6.3

The Municipal Group 31/12/2018

6.0

The City 31/12/2019

31/12/2019

31/12/2018

11.4

The Municipal Group 31/12/2018

31/12/2019

31/12/2018

Book value, sale of development properties*

-71.7

-500.5

-71.7

Capital losses from sales

-0.2

-33.8

-23.1

-105.0

-439.3

-105.0

-439.3

-415.4

-572.8

-415.4

-572.8

-21.6

-219.3

-21.6

-219.3

Provision made for infrastructure and burial operations etc.**

-500.5

Notations claimed according to the 2017/2014 accounts IT costs*** of which school platform of which procurement of a new accounting system of which digital renewal and e-services of which eDoc project of which GS-IT

0.0 0.0

-30.8

0.0

-30.8

-8.4

-68.4

-8.4

-68.4

-256.8

-163.2

-256.8

-163.2

of which modernising social systems

-76.3

-46.4

-76.3

-46.4

of which Smart City

-45.3

-30.9

-45.3

-30.9

of which other IT investments

-7.0

-13.9

-7.0

-13.9

Social investments

0.0

-41.6

0.0

-41.6

Skills development investment

0.0

-46.3

0.0

-46.3

-592.2

-1,600.7

-625.8

-1,623.6

Total costs affecting comparability

* Sales of development properties are recognised gross. ** Burial activity SEK 11.0 million; Slussen bus terminal SEK 94.0 million. KPI total, SEK 77,4 million, is recognised as a financial cost affecting comparability. *** In financial statements 2017, it was decided that notations regarding IT investments would amount to SEK 1,830 million for the period 2018–2020.

NOTE 6 Depreciation* SEK million

Depreciation, tenancy rights and intangible assets (20–33%) Depreciation, buildings and plant (1.4–33.3%) Depreciation, machinery and equipment (2–33%)

The City 31/12/2019

The Municipal Group 31/12/2018

31/12/2019

31/12/2018

0.0

-35.4

-25.8

-1,331.9

-1,228.9

-4,731.3

-4,442.8

-246.7

-219.6

-795.5

-740.8

-1,578.7

-1,448.5

-5,562.2

-5,209.4

Impairment

0.0

-79.9

0.0

Provision for future impairment requirements

0.0

Total depreciation according to plan

Impairment reversal Total depreciation**

0.0

5.0

-1,578.7

-1,448.5

-5,642.1

-5,204.4

* Component depreciation is conducted for all assets. ** Disposals moved to operating costs.

NOTE 7 Tax income

The City

The Municipal Group

SEK million

31/12/2019

31/12/2018

31/12/2019

31/12/2018

Preliminary tax income for the year

47,705.0

49,395.5

47,705.0

49,395.5

Adjustment of forecast final tax settlement for 2017/2016

-0.6

2.4

-0.6

2.4

Adjustment of forecast final tax settlement for 2018/2017

22.8

-137.4

22.8

-137.4

-413.5

-57.9

-413.5

-57.9

180.7

201.9

180.7

201.9

49,184.8

47,714.0

49,184.8

47,714.0

Forecast final tax settlement for 2019/2018 Burial fees Total tax income

Economic and financial reporting

The City of Stockholm’s Annual Report 2019

Note: amounts in the tables are rounded and so do not add up exactly.

NOTE 8 General government grants and equalisation SEK million

The City 31/12/2019

The Municipal Group 31/12/2018

31/12/2019

31/12/2018

Settlement grants

675.3

149.3

675.3

149.3

General government grants

244.7

425.5

244.7

425.5

Municipal property fee

1,204.9

1,176.9

1,204.9

1,176.9

Total general government grants and equalisation

2,124.8

1,751.7

2,124.8

1,751.7 -3,767.2

Fees in the equalisation system -3,962.8

-3,767.2

-3,962.8

Cost equalisation fee

Income equalisation fee

-763.5

-461.3

-763.5

-461.3

LSS equalisation fee

-1,465.4

-1,268.5

-1,465.4

-1,268.5

Total fees in equalisation system

-6,191.7

-5,497.0

-6,191.7

-5,497.0

Total general government grants and equalisation

-4,066.9

-3,745.3

-4,066.9

-3,745.3

NOTE 9 Profit from shares in associated companies SEK million

The Municipal Group 31/12/2019

31/12/2018

Profit/loss from shares in associated companies is included in the Municipal Group as follows: Stockholm Exergi AB

242.8

556.8

Total profit/loss from shares in associated companies

242.8

556.8

As Stockholm Exergi Holding AB represents a considerable value in the proportion of equity, the company’s income statement is presented in abbreviated form below: Income statement Stockholm Exergi AB

Income Costs Financial income

31/12/2019

31/12/2018

7,139.4

7,119.3

-6,355.4

-5,813.5

0.8

1.0

Financial expenses

-167.4

-161.1

Tax

-127.5

-33.7

0.0

-0.3

489.9

1,111.7

Minority interest in the period’s earnings Profit for the year

The income statement above is prepared according to the K3 regulations while the official report the company presents is prepared according to IFRS.

NOTE 10 Financial income SEK million

Interest

31/12/2019

The Municipal Group 31/12/2018

31/12/2019

31/12/2018

694.1

731.6

124.8

103.4

5.7

7.7

198.8

31.1

Share dividend

1,500.0

1,700.0

0.0

of which Stockholm Stadshus AB

1,500.0

1,700.0

0.0

11.2

0.0

11.2

2,199.8

2,450.5

323.6

145.8

Other financial income*

Financial income affecting comparability: sale Stockholm Terminal AB Total financial income

The City

* Other financial income includes e.g. guarantee income from the municipal housing companies.

The City of Stockholm’s Annual Report 2019

Economic and financial reporting

Note: amounts in the tables are rounded and so do not add up exactly.

NOTE 11 Financial expenses SEK million

The City 31/12/2019

The Municipal Group 31/12/2018

31/12/2019

31/12/2018

Interest rates, cash and cash equivalents and investments*

-393.5

-396.4

-355.3

-344.4

Interest component pension provision change

-220.0

-146.8

-220.0

-146.8

Other financial expenses

-40.3

-47.9

-42.4

Financial costs affecting comparability**

-77.4

-66.7

-77.4

-66.7

-731.1

-650.2

-700.6

-600.3

Average interest rate of external debt portfolio with derivatives (%)

0.58

0.76

0.58

0.76

Average interest rate of external debt portfolio without derivatives (%)

0.71

0.72

0.71

0.72

Average fixed-rate period of external debt portfolio with derivatives, years

1.96

1.94

1.96

1.94

Average fixed-rate period of external debt portfolio without derivatives, years

1.70

1.47

1.70

1.47

Total financial expenses Average interest rate*

Average fixed-rate period

* Interest expenses are recognised including net interest and currency swaps, in accordance with RKR R8. Also see Note 37 Derivative instruments. The interest expense for the year for the external debt portfolio is SEK 361.9 million including derivatives, and SEK 445.0 million excluding derivatives. ** Index adjustment 2019 Sweden Negotiation SEK 66.9 million, bus terminal Slussen SEK 10.5 million.

NOTE 12 Income affecting comparability deducted in the balance requirement investigation SEK million

The City 31/12/2019

31/12/2018

Capital gains

-1,721.2

-563.1

Total income affecting comparability deducted

-1,721.2

-563.1

Economic and financial reporting

The City of Stockholmâ&#x20AC;&#x2122;s Annual Report 2019

Note: amounts in the tables are rounded and so do not add up exactly.

Notes to the balance sheet NOTE 13 Intangible non-current assets SEK million

The City

The Municipal Group

31/12/2019

31/12/2018

Opening intangible non-current assets, 1 January

229.4

263.0

New investments for the year

7.7

5.5

Sales

0.0

Reclassification

43.6

2.5

31/12/2018

Disposals

-24.8

-41.6

Total acquisition value, intangible non-current assets

255.9

229.4

Opening depreciation, 1 January

-158.8

-175.6

Depreciation for the year

-35.4

-23.9

Reclassification

0.0

Disposals

24.8

40.6

Total depreciation, intangible non-current assets

-169.5

-158.8

Opening impairment, 1 January

-1.1

Impairment losses for the year

-0.4

0.0

Total closing impairment losses

-1.4

-1.1

Total intangible assets

85.0

69.5

3–10 years 7.2

3-10 years 9.6

Depreciation periods Average depreciation period (years)

NOTE 14 Land, buildings and plant

The City

The Municipal Group

SEK million

31/12/2019

31/12/2018

Opening acquisition value land, buildings and plant, 1 January* Acquisitions for the year Sales for the year Disposals for the year, acquisition value Reclassification Reversal for year to current assets/reclassifications Expensed investments for the year Adjustments to cost attributable to sales in preceding years

66,152.1 2,724.1 -574.1 -7.8 -40.6 0.0 0.0 0.0

61,928.5 4,514.1 -177.9 -46.7 3.2 -69.1 0.0 0.0

191,152.3 2,756.8 -1,112.1 -84.0 9,174.0 0.0 0.0 -0.2

Total closing acquisition value

68,253.7

66,152.1

201,886.8

191,152.3

Opening depreciation Depreciation for the year according to plan Acquired accumulated depreciation for the year Depreciation for the year, sales Depreciation for the year, disposals Reclassification

-11,090.7 -1,331.9 0.0 169.1 1.5 0.1

-9,917.9 -1,228.9 0.0 12.2 41.8 2.2

-47,290.8 -4,724.4 0.0 292.5 53.3 51.1

-43,208.9 -4,435.8 0.0 91.4 98.2 164.3

Total closing depreciation

-12,252.0

-11,090.7

-51,618.3

-47,290.8

Opening reversal of impairment* Depreciation for the year reversed amount Reclassification

0.0 0.0 0.0

365.8 -7.0 0.0

372.8 -7.0 0.0

Total closing write-ups

0.0

358.7

365.8

Opening impairment Impairment for the year Sales for the year, impairment Reversed impairment losses for the year Disposals for the year Reclassification

0.0 0.0 0.0 0.0 0.0 0.0

0.0 0.0 0.0 0.0 0.9 0.0

-1,387.8 -116.3 0.0 26.8 1.9 47.1

-1,393.7 0.0 0.0 5.0 0.0 0.9

Total closing impairment

0.0

-1,428.3

-1,387.8

56,001.7

55,061.5

149,198.9

142,839.5

3–70 years 51.2

3–70 years 53.8

3–70 years 42.7

3–70 years 43.1

Depreciation periods Average depreciation period (years)

31/12/2019

31/12/2018

181,560.2 4,517.2 -231.7 -124.7 5,545.3 0.0 -56.2 -57.7

* Correction of revaluation of SEK 1 billion incorrectly made (removed revaluation Globe against fund incorrectly made against acquisition value instead of against revaluation, debit value reversed to acquisition).

Investment; one base price amount, useful life 3 years or more. RKR R6 regarding impairments has been applied. Component division and component depreciation are applied to the City’s facilities. Impairment has been made in the Corporate Group of projects where the market value after the investment has been completed does not correspond to the book value. The amount is not considered to be of a material size, so no correction according to municipal accounting principles has been made. Reversal of impairment refers to a previously incorrectly made impairment. Note: amounts in the tables are rounded and so do not add up exactly.

The City of Stockholm’s Annual Report 2019

Economic and financial reporting

Total land, buildings and plant

31/12/2019

NOTE 15 Machinery and equipment SEK million

The City

The Municipal Group

31/12/2019

31/12/2018

31/12/2019

31/12/2018

Opening machinery and equipment, 1 January* New investments for the year Sales for the year, acquisition value Disposals for the year, acquisition value Reclassification for the year Capitalised leases

2,034.5 355.2 -37.4 -35.5 2.1 0.0

1,765.4 324.2 -2.6 -61.7 9.2 0.0

17,638.2 454.8 -55.5 -111.2 1,657.2 37.9

16,247.1 404.2 -19.5 -168.2 1,128.3 46.4

Total closing acquisition value, machinery and equipment

2,318.9

2,034.5

19,621.4

17,638.2

Opening depreciation Depreciation for the period according to plan Depreciation for the period, sales Depreciation for the period, disposals Reclassification

-1,205.3 -246.7 37.3 35.3 -0.1

-1,047.2 -219.6 2.3 61.4 -2.2

-8,224.9 -804.9 54.6 102.0 0.5

-7,731.7 -740.8 25.1 156.7 65.8

Total closing depreciation

-1,379.5

-1,205.3

-8,872.7

-8,224.9

0.0 0.1

0.0 0.0

Opening reversal of impairment Reversals for the period Total closing reversal of impairment

0.1

0.0

Opening impairment Impairments for the period Sales for the period Disposals Reclassification

0.0 0.0 0.0 0.0 0.0

-2.3 0.0 0.1 0.0 0.1

-2.3 0.0 0.0 0.0 0.0

Total closing impairment losses

0.0

-2.1

-2.3

Total machinery and equipment*

939.4

829.2

10,746.6

9,411.0

3–20 years

9.4

9.3

24.4

23.8

Depreciation periods (straight-line depreciation) Average depreciation period (years)

Investment: one base price amount, useful life 3 years or more. * Financial leases are included in the total for machinery and equipment, the City’s new leases for vehicles are included from 2019, see note 38 for specification.

NOTE 16 Construction, extension and conversion work in progress

The City

The Municipal Group

SEK million

31/12/2019

31/12/2018

31/12/2019

31/12/2018

Opening construction, extension and conversion work in progress, 1 January New investments for the year Sales Expensed investments Reclassification from/to development properties Reclassification from/to land, buildings and plant

21,787.2 4,186.1 0.0 0.0 399.7 0.0

20,055.6 1,830.3 0.0 0.0 -98.8 0.0

44,245.4 16,854.5 -495.2 -168.0 399.7 -11,072.3

37,474.4 14,369.4 0.0 -165.8 -195.0 -7,237.6

Total closing acquisition value, construction, extension and conversion work in progress

26,373.0

21,787.2

49,764.1

44,245.4

Opening impairment, 1 January Impairment for the year

0.0 0.0

-1,057.6 10.0

-1,057.6 0.0

Total closing impairment losses

0.0

-1,047.6

-1,057.6

26,373.0

21,787.2

48,716.5

43,187.8

Total construction, extension and conversion work in progress Investment: one base price amount, useful life 3 years or more.

NOTE 17 Shares and participations SEK million

The City

The Municipal Group

Economic and financial reporting

31/12/2019

31/12/2018

31/12/2019

31/12/2018

Opening shares and participations, 1 January Purchase of tenant-owner apartments Purchase of shares, participations and securities* Sale of tenant-owner apartments Reclassification tenant-owner apartments Value change Sale of shares, participations and securities*

4,265.6 123.2 0.7 0.0 0.0 0.0 -0.7

4,031.4 240.7 0.0 0.0 -4.2 0.0 -2.3

3,245.3 123.2 178.8 0.0 0.0 184.5 -124.3

2,822.3 240.7 35.8 0.0 -1.4 152.1 -4.2

Total shares and participations

4,388.8

4,265.6

3,607.5

3,245.3

* In 2018, the City’s shareholding in Stockholm Terminal AB was sold. In 2019, sales of limited liability companies purchased during the year Slakthus area.

The City of Stockholm’s Annual Report 2019

Note: amounts in the tables are rounded and so do not add up exactly.

City’s shares in municipal companies etc. on 31 Dec. 2019 Company

Share capital (SEK 000s)

Stockholms Stadshus AB

Participating interest (%)

Book value (SEK 000s) 31/12/2019

2,850,001.0

100.0

Kaplansbacken AB

500.0

100.0

514.0

Svenska Teknologföreningens Fastighets AB

562.0

100.0

562.0

0.0

Stockholms Terminal AB* Total shares in subsidiaries/Group companies

3,484,382.0

0.0 3,485,458.0

Shares in other companies SÖRAB

12,000.0

5.0

400.0

Inera AB

42.5

AB Servi-Data (deposit certificate)

0.1

Total shares in other companies

442.6

Participations in Greater Stockholm Fire Brigade

27,831.4

Total participations in statutory joint authorities

27,831.4

Participations in tenant-owner apartments

875,070.5

Total participations in tenant-owner apartments

875,070.5

Total shares and participations, City

4,388,802.5

* The shareholding in Stockholms Terminal AB was sold in 2018.

NOTE 18 Proportion of equity in associates

The Municipal Group

SEK million

Opening acquisition value Share in profits for the year Dividend

31/12/2018

6,095.6

5,939.9

242.8

555.7

-425.0

-400.0

Adjustments attributable to preceding years

0.0

Other

0.1

-0.1

5,913.5

6,095.6

Closing net value Associates

Corp. ID no.

Reg. off.

Sydvästra Stockholmsregionens VA-verks AB, SYVAB

556050-5728

Stockholm

33.0

Nynäshamns Mark AB

556314-3113

Stockholm

50.0

Mässfastigheter i Stockholm AB

556094-5627

Stockholm

50.4

Stockholm Exergi AB As Stockholm Exergi Holding AB represents a considerable capital value, the company’s balance sheet is presented in abbreviated form below.*

556040-6034

Stockholm

50.0

Balance sheet Stockholm Exergi Holding AB

Intangible non-current assets Tangible non-current assets Financial non-current assets

Capital share (%)

31/12/2019

31/12/2018

102.8

80.1

25,854.2

26,304.0

6.3

6.2

3,079.3

3,054.7

Total assets

29,042.6

29,445.0

Equity including minority interest

Current assets

12,291.6

12,652.6

Provisions

3,276.4

3,325.9

Non-current liabilities

9,729.9

157.9

Current liabilities

3,744.6

13,308.6

29,042.6

29,445.0

Total equity, provisions and liabilities

31/12/2019

* The balance sheet above is prepared according to the K3 regulations while the official report the company presents is prepared according to IFRS.

The City of Stockholm’s Annual Report 2019

Economic and financial reporting

Note: amounts in the tables are rounded and so do not add up exactly.

NOTE 19 Non-current receivables* SEK million

The City 31/12/2019

The Municipal Group 31/12/2018

31/12/2019

31/12/2018

Opening non-current receivables, 1 January

16.9

17.6

77.9

Amortisations

-0.8

0.0

5.1

20.2

16.1

16.9

82.3

77.9

16.1

16.9

16.1

58.6

66.2

19.4

16.1

16.9

82.3

77.9

Change in other non-current receivables Total non-current receivables

58.6

Combined non-current receivables Borrowers, other Other Total non-current receivables

* Receivables with a due date within one year of the end of the reporting period have been transferred to short-term lending.

NOTE 20 D evelopment properties SEK million

Opening development properties New acquisitions Sale of development properties Reclassification, land, buildings and plant Reclassification, work in progress Total development properties

NOTE 21 Inventories and work in progress SEK million

The City

The Municipal Group

31/12/2019

31/12/2018

31/12/2019

31/12/2018

1,727.8

1,629.0

1,727.8

1,629.0

45.3

429.5

45.3

429.5

-83.8

-500.6

-83.8

-500.6

-361.2

71.1

-361.2

71.1

0,0

98.8

0.0

98.8

1,328.1

1,727.8

1,328.1

1,727.8

The City 31/12/2019

The Municipal Group 31/12/2018

31/12/2019

31/12/2018

Inventories

3.4

4.5

36.8

Work in progress

0.0

0.2

4.3

36.7 4.9

Total inventories and work in progress

3.4

4.8

41.1

41.6

Inventories are measured at the lower of acquisition value and fair value.

NOTE 22 Current receivables – other SEK million

Tax assets VAT receivables Government grant receivables Current receivables from the City’s Group companies* Other current receivables Prepaid expenses and accrued income Accounts receivable Total current receivables – other

Economic and financial reporting

The City 31/12/2019

The Municipal Group 31/12/2018

31/12/2019

31/12/2018

0.0

1.4

0.1

784.9

812.5

994.0

983.9 386.0

386.8

386.0

386.8

77,596.5

71,317.0

23.2

33.2

470.4

494.8

2,071.7

1,907.9

1,712.4

1,380.1

780.6

846.8

1,197.5

1,567.0

81,643.7

75,303.3

4,762.4

4,811.9

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

The City of Stockholm’s Annual Report 2019

Note: amounts in the tables are rounded and so do not add up exactly.

NOTE 23 Investments in securities, etc. SEK million

Skills credit account

31/12/2019

The Municipal Group 31/12/2018

31/12/2019

31/12/2018

11.8

14.0

11.8

Current portion of long-term lending*

0.8

Other current investments

0.0

122.6

182.2

12.6

14.8

135.2

196.9

Total current investments

The City

14.0

* Non-current receivables with a due date within one year of the end of the reporting period have been transferred to short-term lending.

NOTE 24 Cash and cash equivalents SEK million

The City 31/12/2019

The Municipal Group 31/12/2018

31/12/2019

31/12/2018

Imprest cash etc.

7.7

6.9

7.4

6.9

Cash and cash equivalents (bank etc.)

0.0

43.2

159.6

52.2

Total cash and cash equivalents

7.7

50.0

167.0

59.1

NOTE 25 Equity

The City

The Municipal Group

SEK million

31/12/2019

31/12/2018

31/12/2019

31/12/2018

Opening equity, 1 January

72,936.6 -415.4

69,760.2

123,985.9***

120,697.5***

-660.7

2,727.6

3,176.4

3,155.6

3,083.2

Profit equalisation reserve (RUR)

0.0

Change of accounting principles**

0.0

207.8

of which allocation 2017/2014 change/earlier years* Change in equity as per income statement

Other Total equity

0.0

-0.6

-2.6

75,664.2

72,936.6

127,140.9

123,985.9

* See Note 26, outgoing 31/12/2018. ** 2018 Changed corporate tax Stockholm Stadshus AB. *** The note adds an opening balance as if the new accounting principles for minority proportion and consolidation of SHIS are included.

NOTE 26 Total allocation equity* SEK million

IT costs

The City IB2018*

1,830.0

Outgoing to-date

-572.8

Outgoing 31/12/2019

-415.4

of which the school platform

UB 31/12/2019

841.8

-21.6

of which digital renewal including e-services

0.0

of which GS-IT

-256.8

of which eDoc project

-8.4

of which modernising social systems

-76.3

of which Smart City

-45.3

of which other IT investments

-7.0

Social investments

(IB2014**) 300.0

-52.2

0.0

247.8

Skills development investment

(IB2014**) 200.0

-59.7

0.0

140.3

Less expended, financed through appropriations** Remaining funds, skills development Total remaining disposition***

(IB) 2,330.0

-2.7

0.0

-2.7

-62.4

0.0

137.6

-687.3

-415.4

1,227.3

* IB 2018: According to a decision in the 2017 annual report, the remaining notation in 2017 was increased to SEK 457.2 million for IT investments. ** Initial notations on social investments and skills development initiatives made in 2014. *** IB together with the column Outgoing to-date shows the total opening mortgage in equity 01/01/2019.

The City of Stockholm’s Annual Report 2019

Economic and financial reporting

Note: amounts in the tables are rounded and so do not add up exactly.

NOTE 27 Pensions and similar obligations SEK million

Opening pension provision, 1 January

The City

The Municipal Group

31/12/2019

31/12/2018

31/12/2019

31/12/2018

6,620.6

6,066.3

8,788.6

8,114.5

New earning and liability change employees

305.0

274.8

534.2

438.5

New earning and liability change pensioners

308.7

282.6

308.7

282.6

Interest-rate and basic-amount indexation

177.0

118.1

177.0

118.1

Pension payments for the year

-170.0

-229.5

-261.8

-318.0

Change in employer’s contribution

150.6

108.2

150.6

108.2

3.5

44.7

of which liability change, defined-contribution pensions for managers

6.8

9.1

6.8

9.1

of which pensioners liability change*

0.0

-114.9

-43.8

-114.9

-43.8

2.4

-0.6

2.4

-0.6 8,788.6

Guarantee and collective agreement pensions

of which liability change in time-limited and retirement pensions for elected representatives, severance pay of which liability change regarding Skafab

7,392.0

6,620.6

9,700.8

of which defined-contribution pensions for managers

Total pension provision

112.8

106.0

227.5

107.7

of which provisions for pensions, special decisions including special payroll tax

225.6

288.4

225.6

288.4

Update rate (%)

81.0

Number of time-limited salaried employees; the City’s time-limited salaried employees all fundamentally have permanent employment, which is why the City’s pension commitments have not changed due to the time limitation

0.0

The liability has been reduced by insurance via occupational pension insurance incl. administration managers and others with special agreements. (SEK million)

0.0

0.2

* Elected representatives have been included in liability in the balance sheet. ** The liability also comprises commitments for latent survivor’s pension.

Economic and financial reporting

The City of Stockholm’s Annual Report 2019

Note: amounts in the tables are rounded and so do not add up exactly.

NOTE 28 Other provisions SEK million

The City 31/12/2019

The Municipal Group 31/12/2018

31/12/2019

31/12/2018

Burial fees* Opening balance, 1 January

183.4

147.4

183.4

0.0

11.0

36.0

11.0

36.0

194.4

183.4

194.4

183.4

1,426.9

1,339.6

1,426.9

1,339.6

0.0

-50.0

-77.7

-50.0

-77.7

0.0

165.0

0.0

165.0

1,377.0

1,426.9

1,377.0

1,426.9

10,033.6

10,092.8

10,033.6

10,092.8

-399.8

-364.2

-399.8

-364.2

Index linking for the year

77.4

66.7

77.4

66.7

Annual provision

94.0

238.3

94.0

238.3

9,805.2

10,033.6

9,805.2

10,033.6

Opening balance, 1 January

0.0

192.5

241.5

Utilised

0.0

-78.0

-49.7

Annual provision

0.0

50.3

0.7

Closing balance

0.0

164.8

192.5

11,643.8

11,579.8

11,836.4

11,821.2

-449.7

-442.0

-527.7

-491.6

77.4

66.7

77.4

66.7

105.0

439.3

155.2

440.0

11,376.5

11,643.8

11,541.3

11,836.4

Utilised Annual provision Closing balance

147.4

Stockholms Ström etc.** Opening balance, 1 January Transferred from liabilities Utilised Annual provision Closing balance Infrastructure grants*** Opening balance, 1 January Utilised

Closing balance Other provisions, companies

Total opening balance Total utilised Total released provision Total index linking for the year Total provisions for the year Total closing balance

* Activities financed by funeral fees may result in a surplus or shortfall in the individual year. This is adjusted against a provision, so that over time the fees are always used for the intended purpose. ** Provisions for Stockholms Ström etc. are estimated to be paid in an amount of SEK 25 million in 2020, SEK 328 million in 2023, SEK 244 million in 2027 and otherwise SEK 585 million from 2020 onwards. Provisions were transferred from non-current liabilities in 2016. *** Provision for bus terminal in Slussen has been increased by SEK 94 million, Indexation Sweden negotiation SEK 66.9 million and indexation Bus Terminal Slussen SEK 10.5 million. In addition, provision for Sweden negotiation, Norra länken, Citybanan, Light Rail, Metro expansion, other rail connections, Slussen bus terminal and the Royal National City Park etc. There is uncertainty regarding the amounts. The City takes up decisions about contributions to national infrastructure as income immediately. The amounts are index-linked. For infrastructure measures, SEK 722 million will be paid in 2020, SEK 1,224 million in 2021, SEK 1,803 million in 2022, SEK 863 million in 2023, SEK 501 million in 2024, SEK 738 million in 2025 and SEK 4 billion after 2025. The timing of the start of the Sweden negotiation and the pace of other projects is uncertain, which also means uncertainty about the amount. As these are large infrastructure projects, there is difficulty in assessing factors that may occur and thus change the cost picture, but with the known factors at year end, the amounts set aside will be sufficient with the exception of the provision for the metro extension, which will probably require more resources. The additional commitments relating to the metro expansion are deemed at year end not to meet the conditions for a provision.

NOTE 29 Bond loans

The Municipal Group

31/12/2019

31/12/2018

31/12/2019

31/12/2018

Opening bond loan liability

27,830.5

24,400.3

27,830.5

24,400.3

New borrowing

13,572.1

9,088.4

13,572.1

9,088.4

Accrual of premiums and discounts

-57.8

-31.6

-57.8

-31.6

Reversal of book premium/discount

0.0

5,626.6

4,530.0

5,626.6

4,530.0

Amortisations

-5,626.6

-4,530.0

-5,626.6

-4,530.0

Current portion of long-term loans*

-9,736.8

-5,626.6

-9,736.8

-5,626.6

Total bond loans

31,608.0

27,830.5

31,608.0

27,830.5

Foreign bond loans

31,608.0

27,830.5

31,608.0

27,830.5

0.0

31,608.0

27,830.5

31,608.0

27,830.5

Swedish bond loans Total bond loans

* Liabilities with a due date within one year of the end of the reporting period. These liabilities have been transferred to short-term loans.

Note: amounts in the tables are rounded and so do not add up exactly.

The City of Stockholm’s Annual Report 2019

Economic and financial reporting

SEK million

Reversal of previous year’s reclassification

The City

NOTE 30 Promissory note loans

The City

The Municipal Group

SEK million

31/12/2019

31/12/2018

31/12/2019

31/12/2018

Opening promissory note loan liability

12,700.0

8,349.0

12,700.0

8,349.0

3,056.5

4,351.0

3,056.5

4,351.0

Reversal of previous year’s reclassification

0.0

900.0

0.0

900.0

Amortisations

0.0

-900.0

0.0

-900.0

New borrowing

0.0

Total promissory note loans

Current portion of long-term loans*

15,756.5

12,700.0

15,756.5

12,700.0

Foreign promissory note loans

15,756.5

12,700.0

15,756.5

12,700.0

0.0

15,756.5

12,700.0

15,756.5

12,700.0

Swedish promissory note loans Total promissory note loans

* Liabilities with a due date within one year of the end of the reporting period and which cannot be judged with certainty to be converted into non-current liabilities. These liabilities have been transferred to short-term loans.

NOTE 31 Other non-current liabilities SEK million

Opening borrowing, leases

The City 31/12/2019

The Municipal Group 31/12/2018

31/12/2019

31/12/2018

0.0

191.2

77.7

22.5

0.0

60.5

46.4

Reversal

0.0

Amortisations

0.0

-40.2

-31.3

Disposal

0.0

-1.3

Reclassification*

-7.5

0.0

-4.9

99.7

Total non-current liabilities, leases

15.0

0.0

206.6

191.2

Funds negotiated and liability funds

36.9

40.2

36.9

40.2

0.6

266.7

200.3

New borrowing, leases

Other non-current liabilities Investment income work in progress

437.9

395.5

437.9

395.5

Capitalised investment income IB

153.5

128.9

153.5

128.9

Acquisition for the period

189.3

14.3

189.3

14.3

-0.3

0.0

-0.3

0.0

-18.8

10.3

-18.8

10.3

Sales for the period Reclassification for the period Reversed investment income Depreciation periods (straight-line depreciation) Average depreciation period (years)

-41.4

-27.7

-41.4

-27.7

3–70 years

-7.8

-5.5

-7.8

-5.5

Total accrued investment income**

720.3

521.3

720.3

521.3

Total other non-current liabilities

772.8

562.1

1,230.5

953.1

According to a change in the recommendation on leasing, the City’s financially leased vehicles shall be capitalised, which is done from 2019. * Leasing liability with maturity within 1 year is reclassified as current liability. ** Investment grants are allocated to the corresponding asset. No relocation to current liabilities occurs as the dissolution of the investment income does not affect cash flow. Investment income related to boat charges that was incorrectly entered on the balance sheet has been entered on the income statement in 2019.

NOTE 32 Current liabilities SEK million

Economic and financial reporting

Accrued costs Prepaid income Tax liabilities Value added tax Trade accounts payable* Funds negotiated, deposited funds, liability funds Employee taxes Holiday pay liability including employer’s contributions Uncompensated overtime including employer’s contributions Current liabilities to Group companies** Other Total current liabilities

The City

The Municipal Group

31/12/2019

31/12/2018

31/12/2019

31/12/2018

2,595.4 1,220.3 448.6 7.3 3,592.5 22.4 346.2 827.1 59.0 7,753.0 786.4

2,475.6 1,311.6 385.9 51.9 4,074.1 19.8 373.0 808.3 60.4 8,677.0 843.6

6,092.2 1,220.3 482.0 11.8 5,297.8 22.4 372.3 934.2 59.0 1,156.6

5,704.3 1,311.6 470.8 93.2 6,065.2 19.8 399.9 904.4 60.4 1,457.0

17,658.2

19,081.2

15,648.6

16,486.6

* Accounts payable in foreign currency are converted at the rate on the balance sheet date. ** The City administers borrowing for the City’s companies. The companies borrow from the City when required. Two of the City’s companies borrow from Stockholms Stadshus AB instead of directly from the City.

The City of Stockholm’s Annual Report 2019

Note: amounts in the tables are rounded and so do not add up exactly.

NOTE 33 Short-term loans

The City

SEK million

Unused bank overdraft facilities Deposit etc. Swedish certificate loans Foreign certificate loans Current portion of long-term loans* Total short-term loans

The Municipal Group

31/12/2019

31/12/2018

31/12/2019

31/12/2018

749.3 0.0 0.0 0.0 9,736.8

0.0 1,000.0 700.6 359.1 5,626.6

777.2 0.0 0.0 0.0 9,744.3

0.0 1,014.2 700.6 359.1 5,626.9

10,486.1

7,686.3

10,521.5

7,700.7

* Long-term loans with a due date within one year of the end of the reporting period have been transferred to short-term loans.

NOTE 34 Maturity of the city’s total borrowing (short-term and long-term loans) Loan maturity

Loan maturity distribution at 31 December 2019 (%)

≤1 year >1–2 years >2–3 years >3–4 years >4–5 years >5–6 years >6–7 years

18.2 14.8 25.5 17.2 17.4 5.0 1.8

Nom amount SEK

-10,491,103,571 -8,513,000,000 -14,667,000,000 -9,924,269,782 -10,050,000,000 -2,900,000,000 -1,056,530,000

NOTE 35 Contingent liabilities and guarantees SEK million

The City’s majority-owned companies’ pension commitments Stockholms Stadshus AB Stockholms Parkering Stockholms Hamnar S:t Erik Markutveckling Stockholm Business Region Bostadsförmedlingen i Stockholm AV AB Svenska Bostäder Micasa Fastigheter i Stockholm AB SISAB Stockholm Vatten Holding AB Stockholm Globe Arena Fastigheter AB STOKAB AB Familjebostäder S:t Erik Livförsäkring AB

The City 31/12/2019

31/12/2018

0.9 3.0 8.4 2.5 3.2 3.4 0.0 3.4 3.5 4.4 1.9 3.1 1.7 1.9

0.0 4.0 6.9 2.3 2.7 3.2 2.6 3.1 3.3 7.6 1.7 3.4 1.4 1.7

41.2

43.8

Loan guarantees Stiftelsen Stockholms Studentbostäder Stockholms Stadsmission SYVAB Other legal persons

58.4 68.6 241.6 13.0

58.4 70.6 169.6 14.4

Total loan guarantees

381.5

313.0

62.0 0.1

55.0 0.2

Total, other legal persons

443.7

368.2

Total contingent liabilities and guarantees

484.9

411.9

Total contingent liabilities and guarantees for majority-owned companies

Pension commitments Municipal loss liability for small houses

The risk that the city will need to meet its guarantees is considered low. In addition, the scope of the commitments is small

The City of Stockholm’s Annual Report 2019

Economic and financial reporting

Note: amounts in the tables are rounded and so do not add up exactly.

NOTE 36 Pension provision, contingent liability

The City

SEK million

31/12/2019

31/12/2018

Opening pension provision, 1 January

13,468.4

13,604.3

Interest-rate and basic-amount indexation Pension payments for the year

424.5

301.7

-725.0

-684.9

Other items Total pension provision, contingent liability Plus employer’s contribution Total pension provision contingent liability including employer’s contribution

3.1

247.3

13,170.9

13,468.4

3,195.3

3,267.4

16,366.1

16,735.8

81.0

Pension commitments regarding temporary pension that has not yet begun to be paid out, which must be recognised as a contingent liability according to the changed recommendation in 2015 Update rate (%)

NOTE 37 Derivative instruments Type of derivative, SEK million

The City Nominal amount

Secured volume

Market value

31/12/2019 Currency/exchange rate swaps*

8,845.1

28.8

Interest swaps

2,550.0

-23.3

11,395.1

5.5 -225.6

Total 31/12/2018 Currency/exchange rate swaps*

9,844.7

Interest swaps

3,500.0

-66.3

13,344.7

-291.9

31/12/2019

31/12/2018

Total

Average interest rate of external debt portfolio including derivatives (%)

0.58

Average interest rate of external debt portfolio excluding derivatives (%)

0.71

0.76 0.72

Average fixed-rate duration of external debt portfolio with derivatives, years

1.96

1.94

Average fixed-rate duration of external debt portfolio excluding derivatives, years

1.70

1.47

Interest expense for the external debt portfolio including derivatives (SEK million) **

361.6

395.8

Interest expense for the external debt portfolio excluding derivatives (SEK million) **

445.0

391.8

* In accordance with the Finance Policy, the average duration shall be within the range 1.5 - 4.5 years. ** Interest expenses are recognised including net interest and currency swaps, in accordance with RKR R8.

Economic and financial reporting

100 The City of Stockholm’s Annual Report 2019

Note: amounts in the tables are rounded and so do not add up exactly.

NOTE 38 Leasing SEK million

The City 31/12/2019

The Municipal Group 31/12/2018

31/12/2019

31/12/2018

Finance leases* Machinery and equipment Reported value

22.5

0.0

92.2

93.1

Present-valued minimum leasing fees

22.5

0.0

113.8

91.6

of which due within 1 year of which due after more than 1 year, but less than 5 years of which due after more than 5 years

7.5

0.0

45.5

33.4

15.0

0.0

68.3

58.2

0.0

0.0 4,207.5

Operating leases*, paid 12,001.4

11,329.6

4,237.6

of which due within 1 year

Minimum lease payments

1,368.0

1,273.0

807.7

792.3

of which due after more than 1 year, but less than 5 years

4,438.0

4,007.2

1,927.9

1,889.2

6,195.4

6,049.4

1,502.0

1,526.0

10,036.1

9,556.1

of which due after more than 5 years of which intra-Group leases due within 1 year

935.7

859.1

due after more than 1 year, but less than 5 years

3,333.6

3,001.1

due after more than 5 years

5,766.8

5,695.8

Operating leases, received Minimum leasing fees

0.0

29,960.0

23,439.1

of which due within 1 year

0.0

9,463.8

9,195.6

of which due after more than 1 year, but less than 5 years

0.0

9,981.0

9,141.8

of which due after more than 5 years

0.0

10,515.2

5,101.6

* For the City’s part, only agreements in excess of 3 years are included. Leases that meet the conditions for operating leases are included. Lease agreements with a total value of less than SEK 500,000 or an annual cost equivalent to a maximum of SEK 150,000 are not included in the report for the City. However, in the Group these limits are not applied. It is only expected to have a marginal effect, which is why no conversion has been performed. Financial leases are included on the asset side of the balance sheet under “machinery and equipment” and under both current and non-current liabilities. No agreements on financial leases include variable fees. In 2019, the City changed IT supplier from HCL to Tieto and to Advania and Fujitsu for educational activities. The introduction of the change occurs gradually. The term of the lease agreement does not exceed three years and it is therefore not included in the financial obligation above. The cost for 2019 amounts to SEK 703.7 million (651.8).

NOTE 39 Additional dividend as per Section 5:1 of the Public Municipal Housing Companies Act SEK million

Additional dividend as per Section 5:1 of the Public Municipal Housing Companies Act 2012 Expended Total remaining Additional dividend as per Section 5:1 of the Public Municipal Housing Companies Act 2013 Expended

The City 31/12/2019

31/12/2018

670.0

-607.8

-566.8

62.2

103.2

1,900.0

-837.9

-665.8

1,062.1

1,234.2

Additional dividend as per Section 5:1 of the Public Municipal Housing Companies Act 2014

450.0

Expended

-184.3

265.7

Total remaining

Total remaining According to the decision of the Municipal Council in connection with the Annual Report 2018, in 2019 certain projects cease to be financed through additional dividend via Municipal Housing Companies legislation. The reason is that these projects changed in nature and/or stopped in the planning phase.

The City of Stockholm’s Annual Report 2019

101

Economic and financial reporting

Note: amounts in the tables are rounded and so do not add up exactly.

NOTE 40 Shares in group companies

Group

SEK million

2019

Parent Company 2018

Opening acquisition value

2019

2018

6,572.9

Shareholders’ contributions paid/acquisition of companies Companies sold Closing acquisition values

SEK million

AB Svenska Bostäder

15,190,000

BOOK VALUE 2019 2018

2,087.9

Reg. off.

Stockholm

556035-1511

Stockholm

Fastighets AB Centrumhuset Vällingby

100

556203-5559

Stockholm

IT-BO i Stockholm AB

100

556615-7292

Stockholm

Svenska Bostäder L-Bolag 1 AB

100

556748-4141

Stockholm

2,087.9

Org No.

556043-6429

AB Stadsholmen

100

Number shares

AB Stadsholmen

0.4

556035-1511

Stockholm

1,398.2

556035-0067

Stockholm

AB Familjebostäder

100

AB Familjebostäder Fastighetsnät

100

556715-5386

Stockholm

Hemmahamnen Kontor AB

100

556736-2156

Stockholm

Gyllenen Ratten Ny AB

100

556876-3196

Stockholm

Micasa Fastigheter i Stockholm AB

100

150,000

29.9

556581-7870

Stockholm

AB Stockholmshem

100

17,640,000

1,630.2

556035-9555

Stockholm

Västertorp Energi AB

100

556052-2160

Stockholm

556715-5394

Stockholm

AB Stockholmshem Fastighetsnät

7,500,000

Bostadsförmedlingen i Stockholm AB

100

1,000

0.1

556057-8303

Stockholm

Skolfastigheter i Stockholm AB

100

50,000

158.3

556034-8970

Stockholm

Ajerf Fastigheter AB (new 2019)

559217-9187

Stockholm

556969-3111

Stockholm

Stockholm Vatten Holding AB

100

1,000

Stockholm Vatten Avfall AB

100

1,000

556969-3087

Stockholm

980

556210-6855

Stockholm

556175-1867

Stockholm

556008-1647

Stockholm

556189-1010

Stockholm

Nynäshamns Hamn AB

100

556038-0882

Stockholm

AB Stokab

100

556475-6467

Stockholm

S:t Erik Kommunikation AB

100

556738-9951

Stockholm

S:t Erik Fiber AB

100

556801-6603

Stockholm

Stockholms Stads Parkerings AB

100

40,000

49.8

556001-7153

Stockholm

Stockholms Stadsteater AB

100

12,500

1,2

1.2

556026-1553

Stockholm

Stockholm Globe Arena Fastigheter AB

100

180

369.0

556206-4914

Stockholm

Arenan 9 Norra Fastigheten AB

100

556862-4182

Stockholm

Stockholm Entertainment District AB

100

556862-4166

Stockholm

Södra Byggrätten Globen AB

100

556862-4174

Stockholm

S:t Erik Försäkrings AB

100

100,000

119.8

516401-7948

Stockholm

S:t Erik Markutveckling AB*

100

232.1

556064-5813

Stockholm

Fastighets AB G-mästaren

100

556605-2170

Stockholm

Stockholm Norra Station AB

100

556661-9929

Stockholm

Fastighets AB Styckmästaren

100

556026-2049

Stockholm

Fastighets AB Charkuteristen

100

556745-4862

Stockholm

Fastighets AB Tuben

100

556048-0328

Stockholm

Fastighets AB Kylrummet

100

556862-8142

Stockholm

Kylfacket Förvaltning AB

100

556566-6111

Stockholm

Fastighets AB Palmfelt Center

100

556833-4535

Stockholm

Langobardia AB

100

556681-4470

Stockholm

Fastighets AB Gavia

100

556860-2188

Stockholm

Fastighets AB Godsfinkan

100

556969-5314

Stockholm

Fastighets AB Grosshandlarvägen

100

556027-2972

Stockholm

Stockholm Business Region AB

100

556491-6798

Stockholm

Stockholm Visitors Board AB

100

556027-5736

Stockholm

Stockholm Business Region Development AB

100

556083-1306

Stockholm

S:t Erik Livförsäkring AB

100

100,000

100.0

516406-0427

Stockholm

AB Glasbrukskvarteret SWF

100

40,000

7.5

556409-1832

Stockholm

6,572.9

Stockholm Vatten AB Stockholm Vatten VA AB

100

Stockholms Hamn AB

100

Kapellskärs Hamn AB

Economic and financial reporting

Total

Share % capital/votes

500,000

21,000

122.6

96.9

159.9

9.1

122.6

96.9

159.9

9.1

* Fastighets AB Runda Huset was sold in 2019. Anser AB and Bostads AB Hammarbygård have been merged into AB Stockholmshem. Ajerf Fastigheter AB was added in 2019.

102

The City of Stockholm’s Annual Report 2019

Note: amounts in the tables are rounded and so do not add up exactly.

Notes to the cash flow statement Internal items are eliminated

NOTE 41 Reversal of capital gains/losses

The City

The Municipal Group

SEK million

31/12/2019

31/12/2018

31/12/2019

31/12/2018

Reversal of capital gains/losses

-2,453.1

-2,552.1

-2,738.8

-2,617.0

A reversal of capital gains/losses is carried out so that the actual sales value is included under investing activities.

NOTE 42 Non-cash items SEK million

Adjustments for depreciation, impairments and disposals Adjustments for provisions made Adjustments for transferred provision from loans Adjustments for reversed income Adjustments for released provision

The City 31/12/2019

The Municipal Group 31/12/2018

31/12/2019

31/12/2018

1,585.2

1,453.7

5,618.6

5,204.4

953.7

1,060.4

1,108.9

1,156.7

0.0

-13.7

-7.0

-13.7

-7.0

0.0

Income tax

103.3

-25.4 0.0

Capital gains from sale of subsidiaries

-206.2

Adjustment in capital gains attributable to preceding years

0.0

Participations in associated company earnings

-242.8

-555.9

Other

154.0

0.5

2,525.2

2,507.1

6,522.1

5,773.5

Total non-cash items

NOTE 43 Decrease in provisions due to payments SEK million

The City 31/12/2019

The Municipal Group 31/12/2018

31/12/2019

31/12/2018

Provisions utilised

-449.7

-442.0

-449.7

-442.0

Less infrastructure contributions, recognised separately

399.8

364.2

399.8

364.2

Total decrease in provisions due to payments

-50.0

-77.7

-50.0

-77.7

NOTE 44 Increase/decrease in current receivables

The City

The Municipal Group

SEK million

31/12/2019

31/12/2018

Current receivables

-6,340.3

-6,519.5

43.0

445.7

Current investments

2.2

3.5

61.8

-55.1

-6,338.2

-6,516.0

104.8

390.7

Total increase/decrease in current receivables

NOTE 45 Increase/decrease in current liabilities etc. SEK million

The City 31/12/2019

31/12/2019

31/12/2018

The Municipal Group 31/12/2018

31/12/2019

31/12/2018

Changes in current liabilities

-1,423.0

1,769.7

-278.9

-835.3

Change in short-term loans excl. change in utilised overdraft facility

2,050.6

2,256.3

2,071.5

2,060.8

627.6

486.6

1,792.6

1,225.5

Total increase/decrease in current liabilities etc.

The City of Stockholmâ&#x20AC;&#x2122;s Annual Report 2019

103

Economic and financial reporting

Note: amounts in the tables are rounded and so do not add up exactly.

NOTE 46 Investments in intangible non-current assets SEK million

The City

The Municipal Group

31/12/2019

31/12/2018

Capitalised development costs

-4.6

-6.6

Total investment intangible non-current assets

-4.6

-6.6

NOTE 47 Investment in tangible non-current assets

The City

31/12/2019

31/12/2018

The Municipal Group

SEK million

31/12/2019

31/12/2018

31/12/2019

31/12/2018

Of which buildings and plant

-2,769.3

-4,943.5

-2,775.9

-4,893.8

-355.2

-324.2

-447.7

-450.2

-4,186.1

-1,830.3

-16,686.6

-14,218.6

0.0

37.9

46.4

-7,310.6

-7,098.1

-19,910.3

-19,562.6

Of which machinery and equipment Of which construction, extension and conversion work in progress Of which finance leases Total investment in tangible non-current assets

NOTE 48 Sale of tangible non-current assets SEK million

Book value land, buildings and plant, incl. development

The City 31/12/2019

The Municipal Group 31/12/2018

31/12/2019

31/12/2018

488.7

666.3

601.5

652.1

Book value machinery and equipment

0.2

0.3

10.1

5.9

Book value, construction, extension and conversion work in progress

0.0

495.2

0.0

Capital gains/losses, incl. development

2,453.1

2,540.9

2,738.8

2,617.0

Total sale of tangible non-current assets

2,942.0

3,207.5

3,845.7

3,275.0

NOTE 49 Investment in financial non-current assets SEK million

The City 31/12/2019

The Municipal Group 31/12/2018

31/12/2018

Purchase of shares and participations

-0.7

Purchase of tenant-owner apartments

-123,154

-240.7

-123.2

-240.7

-123.8

-240.7

-300.4

-240.7

Total investment in financial non-current assets

NOTE 50 Sale of financial non-current assets SEK million

0.0

31/12/2019

The City 31/12/2019

-177.3

0.0

The Municipal Group 31/12/2018

31/12/2019

31/12/2018

Book value financial non-current assets

0.7

2.3

7.0

6.2

Capital gains/losses

0.0

11.2

0.0

Total sale of financial non-current assets

0.7

13.5

7.0

6.2

Economic and financial reporting

104

The City of Stockholmâ&#x20AC;&#x2122;s Annual Report 2019

Note: amounts in the tables are rounded and so do not add up exactly.

NOTE 51 Increase/decrease of non-current liabilities

The Municipal Group

SEK million

31/12/2019

31/12/2018

31/12/2019

31/12/2018

Reclassifications to current liabilities

-9,744.3

-5,626.6

-9,744.3

-5,626.6

Reversal of reclassification of non-current borrowing to current

5,626.6

5,430.0

5,626.6

5,430.0

Accrual of premiums and discounts

-57.8

-31.6

-57.8

-31.6

New borrowing amortisation etc*

218.2

189.8

218.2

189.8

Other changes in non-current liabilities

0.0

53.0

1,530.2

Item recognised under non-cash items

13.7

7.0

13.7

7.0

-3,943.6

-31.4

-3,890.5

1,498.8

Total increase/decrease of non-current liabilities

The City

* This includes resetting reclassification of non-current assets, SEK 10.3 million 2018.

NOTE 52 Cash flow for the year The year’s cash flow for the City is negatively affected by increased claims on City companies due to high investment volume. The City’s high investment volume also contributes to the negative flow. Funds from operations and loans provide positive flow. Overall, a negative flow.

NOTE 53 Cash and cash equivalents at period-end SEK million

The City 31/12/2019

The Municipal Group 31/12/2018

31/12/2019

31/12/2018

Imprest cash etc.

7.7

6.9

7.7

6.9

Cash and cash equivalents (bank etc.)

0.0

43.2

159.3

52.2

Unused bank overdraft facilities

-749.3

0.0

-749.3

0.0

Total cash and cash equivalents at period-end

-741.7

50.0

-582.3

59.1

The City of Stockholm’s Annual Report 2019

105

Economic and financial reporting

Note: amounts in the tables are rounded and so do not add up exactly.

Audit report for the City Executive Board 2019 As the auditors appointed by the City Council, we have audited the City Executive Board’s activities during 2019. The audit of the City Executive Board also includes the City’s annual report and accounting records, including the combined accounts for the City of Stockholm Municipal Group. The audit has been carried out by experts assisting the auditors. The City Executive Board is responsible for governing, leading and coordinating the City’s operations and monitoring committees, companies and statutory joint authorities. The Board is responsible for ensuring that the operations are conducted in accordance with the City C ouncil’s objectives, decisions and guidelines as well as laws and regulations. The Board is responsible for follow-up and feedback being provided to the City Council. The City Executive Board is also responsible for preparing an annual report that provides a true and fair view of the City’s operations, financial position and performance. Our responsibility is to review operations, internal control and accounts and to determine whether operations have been conducted according to the City Council’s objectives, decisions and guidelines as well

as the laws and regulations that apply to the operation. We must also assess whether the surplus in the City’s annual report is consistent with the financial targets and operating objectives decided on by the City Council.

judged to be fulfilled. The other two orientation objectives are partly fulfilled. Deviations from the annual targets set are found in housing production, the environment and perceived security in the City and its operations.

The audit has been conducted in accordance with the Local Government Act, generally accepted auditing practice in municipal operations and the City’s auditing rules. The audit has been carried out using the focus and scope necessary to provide a reasonable basis for assessment and review of liability. We are appending a summary annual report that provides a general description of the results of our audit.

Our assessment is that, from a financial perspective, the City Executive Board has conducted activities appropriately and satisfactorily. All financial targets are deemed to have been achieved in the short term. In order to maintain good financial management in the long term, strategies are needed to manage the development of the city’s loan debt. The financial statements are essentially deemed to be true and correct.

The appointed lay auditors of the City’s companies, i.e. Stockholms Stadshus AB and subsidiaries, have audited the operations of these companies.

Our assessment is that the City Executive Board’s internal control of the City’s operations has been adequate in most respects.

Our overall assessment is that activities have been conducted appropriately and satisfactorily. The assessments are based on the results of this year’s review, follow-up and analysis of goals, as well as a general analysis of how the City performs its commitments based on legislation, regulations and current conditions. One of the City’s three orientation goals is

We recommend that the City Council grant discharge from liability to the City Executive Board and its individual members. The auditor’s report includes an annual report that summarises the outcome of audits of the City’s committees and companies as well as audit memoranda and auditor’s reports in accordance with the list attached.

Stockholm, 26 March 2020 Ulf Bourker Jacobsson Bosse Ringholm Eva Aronsson Linus Bylund Barbro Ernemo

Ulf Fridebäck Carolina Gomez Lagerlöf Elias Granqvist Fredrik Jöngren Magnus Kendel

Sven Lindeberg Ulla-Britt Ling-Vannerus Eva Lundberg Maria Löfgren Amanj Mala-Ali

Lars Riddervik Gun Risberg Michael Santesson Stefan Sjölander Gunnar Ågren1

The following appendices are included in the auditor’s report f f f f f

Economic and financial reporting

Annual Report of the City Audit 2019 The expert advisers’ annual reports 2019 by committee (nos. 1–2, 4–33) The expert advisers’ annual reports 2019 by company (nos. 1–17) Expert advisers’ project reports (nos. 2–6, 2019 and nos. 1–3, 2020) Review reports from lay auditors and auditor’s reports from the company’s authorised public accountants: Stockholms Stadshus AB • AB Svenska Bostäder – AB Stadsholmen, IT-BO i Stockholm AB, Svenska bostäder L-Bolag 1 AB, Fastighets AB Centrumhuset i Vällingby • AB Familjebostäder –AB Familjebostäder Fastighetsnät, Hemmahamnen Kontor AB, Gyllene Ratten Ny AB • AB Stockholmshem – AB Stockholmshem Fastighetsnät, Västertorp Energi AB • Skolfastigheter i Stockholm AB • Bostadsförmedlingen i Stockholm AB • Stockholm Vatten och Avfall AB – Stockholm Avfall AB, Stockholm Vatten AB • Stockholms Hamn AB – Nynäshamns Hamn AB • Stockholms Stads Parkerings AB • AB Stokab – S:t Erik Kommunikation AB, S:t Erik Fiber AB • Stockholms Stadsteater AB • Stockholm Globe Arena Fastigheter AB – Stockholm Entertainment District AB, Södra Byggrätten Globen AB,Arena 9 Norra Fastigheten AB • Stockholms Business Region AB – Visit Stockholm AB, Invest Stockholm Business Region AB • Micasa Fastigheter i Stockholm AB • S:t Erik Markutveckling AB – Fastighets AB G-mästaren, Fastighets AB Charkuteristen, Fastighets AB Styckmästaren, Fastighets AB Tuben, Kylfacket förvaltning AB, Fastighets AB Kylrummet, Fastighets AB Palmfelt center, Norra Station AB, Fastighets AB Langobardia, Fastighets AB Gavia, Fastighets AB Godsfinkan, Fastighets AB Grosshandlarvägen • S:t Erik Livförsäkring AB • S:t Erik Försäkrings AB • Mässfastigheter i Stockholm AB

Gunnar Ågren has approved the audit report by e-mail as he has been prevented from signing it.

106

The City of Stockholm’s Annual Report 2019

PHOTO: HENRIK TRYGG

Economic and financial reporting

107

The City of Stockholmâ&#x20AC;&#x2122;s Annual Report 2019

Committees, companies and foundations Committees SEK million

Number employees

City Executive Board Audit Board Service Committee Election Committee The District Councils

Budget net costs

Net outcome excl. surplus reserves

Change income fund

Deviation outcome 2019

Outcome net investments

408

-1,394

-1,346

-23

-29

-28

-2 0

375

-3

-8

-1

-30

-24

19,796

-21,448

-21,427

-318

Labour Market Committee

927

-885

-884

-3

City Development Committee

277

1,298

1,255

-42

-3,278

Real Estate Committee

168

314

291

-22

-2,377

Sports Committee

440

-699

-689

-70

Culture Committee: Culture Administration

869

-922

-21

Culture Committee: City Archives

-78

-9

Cemeteries Committee

117

-172

-170

-54

Environment and Health Committee

266

-118

-116

-1

Social Services Committee

952

-1,297

-1,222

-12

Urban Planning Committee

348

-166

-148

Transport Committee

423

-542

-447

-933

16,418

-19,286

-19,401

119

-119

129

-183

-180

-5

-62

-61

42,079

-45,702

-45,603

125

224

-7,202

Education Committee Elderly Services Committee Public Trustees Committee Total committees

The number of employees refers to all salaried employees as at 31 December 2019 The budget and outcomes are inclusive of capital costs and internal transactions between the committees. Increase in income fund (-). Deviation is after appropriations.

District Councils SEK million

Number employees

Budget net costs

Net outcome excl. surplus reserves

Change income fund

Deviation outcome 2019

Outcome net investments

Rinkeby-Kista District Council

1,371

-1,590

Spånga-Tensta District Council

1,002

-1,139

-1,141

-18

Hässelby-Vällingby District Council

1,634

-1,951

-1,947

-3

-23

Bromma District Council

1,728

-1,574

-1,588

-25

Kungsholmen District Council

1,231

-1,190

-1,199

-24

884

-1,174

-1,164

-22

Norrmalm District Council

-16

Östermalm District Council

1,060

-1,452

-1,413

-2

-19

Södermalm District Council

1,797

-2,366

-2,361

-5

-29

Enskede-Årsta-Vantör District Council

2,636

-2,363

-2,362

-1

-32

863

-1,141

-14

1,422

-1,654

-1,655

-22

Skarpnäck District Council Farsta District Council Älvsjö District Council

799

-667

-683

-4

-29

Hägersten-Liljeholmen District Council

2,267

-1,969

-1,964

-5

-28

Skärholmen District Council

1,102

-1,218

-1,219

-18

19,796

-21,448

-21,427

-318

Total district councils

Economic and financial reporting

108

The City of Stockholm’s Annual Report 2019

Note: amounts in the tables are rounded and so do not add up exactly.

District Councils’ operational areas SEK million

Net outcome excl. income funds

Budget net costs

Committee and management administration

Change in income fund

Deviation outcome 2019

-692

-676

-2,231

-2,235

-5

of which social psychiatry

-494

-539

-1

-45

City environment activities

-232

-235

-3

depreciation

-140

-131

-11

-12

-1

-4,925

-4,890

Individual and family care

internal rates Pre-school activities

Elderly care services

-7,478

-7,484

-1

Support and services for people with disabilities

-4,023

-4,105

-70

Culture and association activities

-395

-348

Labour market measures

-187

-199

-12

-1,101

-1,110

-9

-259

-317

-59

Other activities

-32

-2.1

Total activities

-21,448

-21,427

Financial assistance of which administrators

The income and expenses of the operations include internal transactions.

Foundations and statutory joint authorities OPERATING INCOME

SEK million

Average number of employees

City’s Other operating contribution income

Operating expenses

Other income/ expenses net incl. depreciation

Surplus for the year after appropriations

Balance sheet total

Stiftelsen Barnens Dag

82.5

0.0

66.7

-60.5

-2.5

3.7

68.7

Stiftelsen Hotellhem i Stockholm

220

43.4

422.0

-462.0

-2.8

0.9

170.7 25.1

Stiftelsen Stockholm Water Foundation

0.0

4.2

-7.9

0.7

-3.0

Stiftelsen Strindbergsmuseet

5.5

4.5

-9.7

0.3

7.2

309.5

48.9

497.4

-540.1

-4.3

1.9

271.7

396.4

286.5

-648.9

-33.9

0.1

924.4

Total foundations

Foundations to which the City appoints at least half of the board members.

Statutory joint authorities Greater Stockholm Fire Brigade

735

The City of Stockholm’s Annual Report 2019

109

Economic and financial reporting

Note: amounts in the tables are rounded and so do not add up exactly.

Limited companies SEK million

Number of employees

Sales

Profit after net financial Balance sheet items total

Equity1

Interest, total Equity/assets capital2 , % ratio3 , %

Investments

Stockholms Stadshus AB (Group) Stockholms Stadshus AB, Parent Company

45.0

518.0

24,906.0

24,337.4

2.9

97.7

0.0

AB Svenska Bostäder, Group

353

3,061.0

310.0

28,513.0

13,414.6

1.5

47.0

2,092.0

AB Familjebostäder, Group

333

2,050.0

342.0

17,226.0

9,857,1

2.4

57.2

1,683.0

AB Stockholmshem, Group

380

2,662.0

442.0

24,436.0

10,040.5

2.3

41.1

1,622.0

Micasa Fastigheter i Stockholm AB

102

1,119.0

503.0

6,734.0

1,206.2

8.0

15.7

270.0

Bostadsförmedlingen i Stockholm AB

104

119.0

11.0

107.0

32.1

11.5

30.0

0.0

Skolfastigheter i Stockholm AB, SISAB

258

2,581.0

31.0

18,036.0

402.9

1.0

1.8

2,370.0

Stockholm Vatten och Avfall AB, Group

625

2,415.0

2.0

17,417.0

808.6

0.6

406.0

2,987.0

Stockholm Hamn AB, Group

186

889.0

92.0

6,795.0

991.4

2.1

14.6

1,290.0

AB Stokab

103

814.0

257.0

1,943.0

797.8

13.3

41.1

151.0

618.0

156.0

1,422.0

140.0

12.3

9.7

229.0

412

119.0

-376.0

493.0

1.9

Neg

0.3

7.0

82.0

-85.0

3,580.0

508.1

Neg

14.2

15.0

S:t Erik Försäkrings AB

137.0

23.0

433.0

277.6

5.7

52.9

0.0

S:t Erik Livförsäkring AB

86.0

98.0

2,774.0

733.3

3.7

26.4

178.0

Stockholms Stads Parkerings AB, Group Stockholms Stadsteater AB Stockholm Globe Arena Fastigheter AB, Group

Stockholm Business Region AB, Group

147.0

3.0

198.0

26.8

1.5

13.6

0.0

318.0

289.0

2,889.0

237.6

10.4

8.2

58.0

13.6

Mässfastigheter i Stockholm AB, Group

269

511.1

-39.0

891.0

339.8

neg

38.1

29.6

Stockholm Exergi AB

739

7,051.4

617.4

29,042.6

12,291.6

2.7

42.3

1,550.0

4,045

24,824.5

3,194.4

187,849.2

76,458.9

S:t Erik Markutveckling AB, Group Other companies, Associates SSAB

Total, limited companies*

* The associated companies’ profit share is included in the Group’s operating profit.

1 Equity is expressed here as the sum of restricted and non-restricted equity according to the balance sheet, and 78.6% of the untaxed reserves. 2 Interest on total capital is calculated as follows: Profit/loss after financial items plus interest expenses divided by average balance-sheet total. 3 The equity/assets ratio is calculated as follows: Equity and 78.6% of the untaxed reserves divided by total assets.

Economic and financial reporting

110

The City of Stockholm’s Annual Report 2019

14,531.6

Note: amounts in the tables are rounded and so do not add up exactly.

PHOTO: ANNA Ã&#x2026;BERG

PHOTO: LENNART JOHANSSON

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