In the evaluation report, the audit committee set questions for the administrative municipalities, to which the municipal government must provide answers by September 30.9. The questions set are:

A question concerning the entire municipality:

The Audit Committee asks how the holding of development discussions has been instructed and how many employees have had development discussions and how many have not been held in 2023 (by administrative municipality)?

Technical committee

The Audit Committee asks whether a binding timetable has been set for achieving the unfinished objectives?

The inspection board asks how the cleanliness of the gym is maintained?

Education and welfare committee

Realization of the goals of the well-being plan

Regarding the goals of a safe living environment, the inspection board asks: What measures are planned to ensure better achievement of the mission objectives?

Answers

Development discussions: Supervisors in the management team have been urged to hold development discussions annually. In connection with the job descriptions in Section 70 of the Administrative Code, it has been stated that job descriptions are reviewed in connection with the annual development discussion.

In the Finance and Administration Department, development discussions have been held with all employees in 2023 and 2024. For the management team, 3/3 were held in 2024. No discussions were held in 2023. Development discussions for technical positions have been held with all permanent employees. The response of the Education and Welfare Board in its own section.

Technical Committee 21.8.2024 § 57

The Audit Committee asks whether a binding timetable has been set for achieving the unfinished objectives?

Statement of the Technical Committee:

Attention should be paid to setting and measuring technical action targets in the future. Operational targets should be set so that they are realistically achievable in relation to the budget's operating and investment appropriations and planning years. The target setting has been changed in this direction in the 2024 budget.

Regarding the 2023 targets, the timetables for the unfinished targets are as follows:

Property survey project, so-called property tax survey

The property survey project has been started in 2021-2022, when an employee has been hired for the project for approximately four months. There are approximately 3300 properties and approximately 3600 buildings in the municipality of Kihniö. The survey work has only just begun. After this, no resources have been allocated for the project in the budgets and it is impossible to advance the project with permanent technical staff. In municipalities where similar surveys are underway or have already been completed, the projects are implemented either by hiring temporary project workers or by purchasing services.

If the project is to be implemented within a binding schedule, it must be approved in the budget and a possible phasing, schedule and resources for implementation must be presented.

Classification of municipally owned properties as "portfolio"

The property portfolio is part of the property and premises strategy, the updating of which has been carried out in the technical administration. Since properties are the largest single area of ​​responsibility of the technical administration, the issue is being promoted on several fronts: as part of the economic adjustment, in the health center premises working group and in the development of the production of technical services. No binding timetable has been set for bringing the document to decision-making, but the goal is to draw up a five-year program for the years 2024-2028. Until then, the portfolio-based property maintenance strategy will actively promote the sale and demolition of properties that are being transferred.

Construction of the reception hall

The project is not on the municipality's investment list, so the technical function cannot contribute to the matter until the project progresses to the planning and implementation phase. No binding timetable has been presented for the project. The technical function will participate in the preliminary studies of the project in the tasks falling within its area of ​​responsibility.

Measures for marketing business plots, measures to support tourism, measures to promote multi-location and development of sports facilities

Goal setting, measurement and monitoring of these goals have been quite extensive and ambiguous. The goals and schedules have been identified and updated in the 2024 budget to align with the municipal strategy.

In addition, the inspection committee has discussed the maintenance of sports facilities and the cleaning of the gym and asked the Education Committee a question:

The inspection board asks how the cleanliness of the gym is maintained?

Statement of the Technical Committee:

The cleaning services of the premises of the Educational Service have been provided until 31 July 2024 as a support service for the Educational Service, namely cleaning and sanitation. The cleaning of the hall has therefore been within the area of ​​responsibility of the Educational Service and is responsible for any quality deviations. The Technical Committee is responsible for all cleaning services provided by the municipality from 1 August 2024. The cleaning of the gym is included in the cleaning work program for maintenance and basic cleaning. The frequency of maintenance cleaning during the semester during school work is 5 times a week. The cleaning frequency may change during the holidays.

Education and Welfare Board 12.8.2024 Section 66

The Kihniö Municipality Audit Board states in its 2023 evaluation report that the operations have essentially been in line with the set objectives. The Audit Board asked the Education and Welfare Board two questions.

Realization of the goals of the well-being plan

Regarding the goals of a safe living environment, the inspection board asks: What measures are planned to ensure better achievement of the mission objectives?

Statement of the Education and Welfare Board:

1. The structures for multidisciplinary preventive substance abuse work will be created in the municipality: The EPT work will be carried out together with other municipalities, Pirha and organizations. The planning work will begin together with the well-being coordinators of Parkano, Hämeenkyrö and Ikaalinen on Tuesday 13 August 2024.
2. Describe the prevention and intervention of substance use in the school's student welfare plan: The prevention of substance use and intervention are described in the student care plan updated in summer 2023. In addition, a service chain description will be carried out as part of the school psychologist project during the 2024-2025 academic year.
3. Using the Children Speak method in substance abuse services for adults: With the reform of the Finnish Social Security and Health Care System, substance abuse and mental health services have been transferred to Pirha.
4. Stay Upright campaign: Falls can be prevented by taking care of the physical activity of the residents and by ensuring the safety of the home and built-up areas. The Education and Wellbeing Committee organizes physical activity opportunities for the elderly and conveys the message about the importance of a safe environment in the prevention of falls to the technical committee.
5. Fire safety at home: A campaign will be organized on February 11, 2025, on Test Your Smoke Alarm Day, and a reminder will be given of the importance of chimney sweeping in the fall of 2024.
6. Water safety: The possibility of organizations participating in the campaign is being investigated.
7. Reflector campaigns: The campaign has been implemented annually at Kihniö Comprehensive School, but the campaign will be expanded to reach all residents of the municipality.
8. Utilization of material presented at the meetings of the traffic safety working group: The material obtained at the meetings will be distributed as widely as possible.

Leisure services

The Audit Board stated in its statement that good management includes regular development discussions. The Audit Board asks each administrative municipality: How are performance reviews instructed and how many performance reviews are yet to be held in 2023?

Statement by the Education and Wellbeing Committee: The goal of the Education and Wellbeing Committee is to hold development discussions annually. The guidelines and structure of the development discussion are the same for everyone. The answers are intended to be mirrored to the previous year. Both parties prepare for the development discussion in advance using structured questions. In 2023, 37/44 development discussions were held.

In addition, the Education and Wellbeing Board takes into account the inspection board's statement that a job description has not been made for the leisure instructor. Job descriptions are also missing for other employees, which is why in autumn 2024, job descriptions will be made for the daycare director, the Wilma manager, the education office secretary and the school/detective youth worker in addition to the leisure instructor.

Attached to the agenda are the interim reports on budget implementation prepared for the general administration, education and welfare and technical committees as of June 30, 2025. Regarding group supervision, the operating reports of the companies in the municipal group are presented.

Department heads present reports from their own areas of expertise

Appendix 5: Interim report

The Ministry of Finance amends the decision of 21 December 2023 (VN/35660/2023) on the state transfer of basic municipal services for 2024 on the following grounds.

Return of unused appropriation from a state budget item 28.90.31 (Financial support for the merger of municipalities)

According to the second supplementary budget of the state for 2024, EUR 9,947,000 will be added to the central government transfer for basic municipal services in connection with the return of the consolidation grants for municipalities in difficult financial situations under Section 56 a of the Municipal Structure Act (1698/2009) that were not used in 2023, as well as the discretionary consolidation grants for municipalities under Section 41 of the Municipal Structure Act and compensation for the loss of central government transfer under Section 44.

According to Section 56a of the Municipal Structure Act, the amount of euro corresponding to the total amount of discretionary merger grants is deducted from the central government grant pursuant to the Act on the Central Government Grant for Basic Municipal Services (618/2021). The reduction in the central government grant is the same per capita in all municipalities. If the entire amount of euro reserved for discretionary merger grants is not used during the financial year, the remaining part is returned to the municipalities in an equal per capita share during the year following the financial year.

According to Section 41 of the Municipal Structure Act, a discretionary merger grant may be paid to a new municipality created by the merger of municipalities within the limits of the state budget. The Government decides on the granting of a discretionary merger grant in connection with the decision on changing the division of municipalities. According to Section 59 of the Municipal Structure Act, the amount of euros corresponding to the total amount of merger grants referred to in Section 41 of the Act is deducted from the state transfer pursuant to the Act on State Transfers for Basic Municipal Services (618/2021). The reduction of the state share is the same per capita in all municipalities. If the amount of euros reserved for the merger grant is not used in full during the financial year, the remaining part is returned to the municipalities in an equal share per capita during the year following the financial year.

In the state budget for 2023, EUR 5,500,000 was reserved for subsection 28.90.31 (Financial support for the merger of municipalities) for discretionary merger grants for municipalities pursuant to Section 41 of the Municipal Structure Act and for compensation for the reduction of central government transfers pursuant to Section 44 of the Municipal Structure Act, and EUR 5,500,000 for merger grants for municipalities in difficult financial situations pursuant to Section 56 a of the Municipal Structure Act.

On 1 June 2020, the Government decided to merge the City of Kankaanpää and the Municipality of Honkajoki in early 2021 (VM/2020/101). At the same time, the Government decided to grant a discretionary merger grant of a total of 3,500,000 euros to the new City of Kankaanpää.

According to the Municipal Structure Act, the payment of the discretionary unification grant can be spread over a maximum of three years. According to the decision made by the Ministry of Finance on 23 March 2021, the City of Kankaanpää will be paid a unification grant of 1,400,000 euros in 2021, 1,050,000 euros in 2022 and 1,050,000 euros in 2023. In addition, the City of Kankaanpää will be paid a total of 8,028 euros in compensation for the reduction in state transfers in 2021–2024, so that the compensation is 2,007 euros per year.

EUR 5,497,000 of grants under Section 41 S of the Municipal Structure Act and compensation under Section 44 S of the Municipal Structure Act remained unused from the item, as well as EUR 4,450,000 of grants under Section 56 a S of the Municipal Structure Act. In total, EUR 9,947,000 of appropriations transferred from the central government contribution item for basic municipal services remained unused from the item 28.90.31 in 2023.

2. Clarification of the costs of social and healthcare services and rescue services transferred from municipalities to welfare areas

Section 3 of Section 57 of the Act on the State Subsidy for Basic Municipal Services (618/2021) provides for the revision of the calculations of the transfer of funding related to the reform of social welfare, healthcare and rescue services. The calculations are made again based on the average of the final municipal cost data collected by the State Treasury for 2021 and 2022 and the revenue data for 2022. The revised calculations will serve as the basis for municipal-specific state transfers from 2024 onwards. In addition, the Government Decree on the State Subsidy for Basic Municipal Services (1393/2022, 7 S amended by 885/2023) provides for the correction of financial statement items that significantly distort the information in the transfer calculation. Section 57 of the Act on the State Subsidy for Basic Municipal Services 4

According to subsection 1, if, based on the review, municipalities have transferred less revenue than costs at the national level, the amount corresponding to the difference will be deducted from the central government transfer granted to municipalities.

The net costs of social, healthcare and rescue services, which are transferred to the basis for the financing of welfare areas according to the municipalities' financial statements for 2022 and 2021, have been revised based on the requests for corrections made regarding the 2024 municipal basic services government transfer decisions and the 2024 financing decisions of welfare areas, and other decisions issued due to corrections to the information underlying the decisions.

The costs transferred from municipalities to form the basis for the funding of welfare areas have been specified to be a total of 559,000 euros higher than the costs underlying the above-mentioned decision on the 2024 state transfer of municipalities. Accordingly, the aforementioned decision should be amended so that the transfer of funding from the state transfer of municipal basic services to the funding of welfare areas (item 28.89.31) is increased by 559,000 euros, which in turn reduces the state transfer of municipal basic services.

3. Adjusting the basic part of the home municipality compensation for 2024

According to Section 35 S of the Act on the State Subsidy for Basic Municipal Services, the Ministry of Finance decides on the euro amount of the basic component of the home municipality compensation by the end of the year preceding the financial year. The basic component for 2024 is based on the net costs of pre-primary and basic education in 2022. Cost information is formed partly from the service category-specific financial statements of municipalities reported to the State Treasury and partly from cost information according to the data collection of the Finnish National Agency for Education.

The Ministry of Finance has discovered errors in the cost base data collection used to calculate the basic component of the home municipality compensation, which affect the basic component of the home municipality compensation confirmed for 2024.

The cost base incorrectly included some sales revenue twice, and some service purchases were also missing.

The Ministry of Finance will adjust the euro amount of the basic component of the home municipality compensation for 2024 by a separate decision (VN/35661/2023). The new basic component for 2024 is 7880,65 euros. Home municipality compensations according to the new basic component amount will be paid starting from the August payment installment.

Jurisdiction:

Act on the State Subsidy for Basic Municipal Services (618/2021), 45 S

Decision:

The Ministry of Finance has today decided to amend the decision on the state transfer of basic municipal services for 2024 based on the state supplementary budget for 2024 II:

As stated above in the justifications, the appropriation reserved for unification grants will be returned (1.80 euros per inhabitant).

Based on the clarification of the costs of social and healthcare services and rescue services transferred from municipalities to welfare areas, the amount of additional funding transfer resulting from the retrospective review and the municipal-specific funding items that balance the effects of the social and healthcare reform will be changed.

The changes will be taken into account in increases and decreases in the government transfer.

The changes will be taken into account in the annual budget for state transfers for basic municipal services.

Starting from the August 2024 payment instalment. The updated state transfer calculation for 2024, with the changes in accordance with this decision and the decision to correct the basic part of the separate home municipality compensation, will be published on the Ministry of Finance's website at: https://vm.fi/valtionosuuslaskelmia

The effects of the decisions on the central government transfer for basic municipal services granted to the municipality and on the home municipality compensation are shown in Appendix 1.

Appendix 2-4 decisions are attached to the minutes.

A municipal initiative has been received in the municipality of Kihniö (can be read in full in the municipal initiative service):

The fixed assets on the balance sheet of Kihniö Water and Heat Oy, which is wholly owned by the municipality of Kihniö, must be recorded in the 2023 financial statements currently being prepared at their actual fair value and, if necessary, scrapping depreciation must be made on the excess.

The Kihniö municipal government states:

In practice, the incorporation meant a business transaction in which the entire business and fixed assets of the water supply and heating plant were transferred to a company to be established for a certain value. The municipality subscribed to the entire capital of the company and acquired 100% ownership of it.

The incorporation project included, among other things, the current use value of the objects to be incorporated. The incorporation study was conducted by AFRY Finland Oy. The tax authority also issued a preliminary ruling on the matter.

The municipality's financial statements for 2023 were approved at the municipal council meeting on June 17, 2024.

In 2025, municipal elections will be held in Finland, where members of municipal councils will be elected for the term of office from 1 June 2025 to 31 May 2029. As part of the preparations for the municipal elections, the question of the number of councillors to be elected to the Kihniö municipal council in these municipal elections must be resolved. The resolution to be made will be valid for the entire term of office of the new council, i.e. until 31 May 2029.

According to Section 16 of the Local Government Act, the council decides on the number of councillors. An odd number of councillors are elected based on the municipality's population as follows:

If the council does not make a decision on the number of councillors, the minimum number of councillors provided for by law shall be elected. The council's decision on a number greater than the minimum or on a change to a previous decision must be notified to the Ministry of Justice by the end of the year preceding the election year.

The municipality of Kihniö has had 21 councillors for a long time. The municipality's population has been declining.

Seven different landowners are involved in the waterfront development plan project, who are requesting that the municipality of Kihniö initiate the preparation of an amendment to the Nerkoonjärvi waterfront development plan. The drafter of the plan will separately submit a participation and assessment plan (OAS) regarding the development plan project to the municipality.

The company responsible for land use planning is Nosto Consulting Oy and the drafter of the plan is Pasi Lappalainen, M.Sc.

At the same time, the municipality is asked to announce the initiation of the waterfront development plan and to consult with stakeholders.

The properties for which a change in the waterfront zoning plan is being applied for are the following:

• 250-407-960 ja 250-407-9-66
• 250-407-15-19 ja 250-407-15-45
• 250-407-9-63 ja 250-407-9-65
• 250-407-8-81
• 250-407-9-116 ja 250-407-9-134 ja 250-407-2-104 ja 250-407-2-172
• 250-407-9-61
• 250-407-9-137

Appendix 6 applications

A waterfront development plan will be prepared for the following properties in the municipality of Kihniö:

- Cherry: 250-407-16-13

- Cherry II 250-407-16-15

- Lingonberry 250-407-16-54

The plan is prepared by civil engineer Heikki Havanka.

Appendix 7 application

According to Section 110(5) of the Local Government Act, the municipality's operations and financial management must comply with the budget. Any changes to it are decided by the council.

The Ministry of Finance has decided to reduce the state transfer granted to the municipality of Kihniö due to the clarification of the costs of social and health services. The state transfer for basic services in the current year's budget has been estimated at €1.031.051. The new estimate according to the decision is €849.632. The difference compared to the budget is €181.419.

The organizational change of the cleaning support services has been made as of 1 August 2024. The cleaning staff of the Education and Welfare Department was transferred to the Technical Committee. An appropriation change will be made to the current year's budget, in which the remaining appropriation of €64.539 from the cost center 0033300 Cleaning and sanitation support service under the Education and Welfare Department will be transferred to the new cost center 006625 Cleaning Services under the Technical Committee.

Investments

€3.000 is reserved for land acquisition (purchase of Op-Puisto for the municipality)

According to Section 48 of the Tax Collection Act, municipalities have the option of retaining the power to decide on matters concerning the exemption of municipal tax and real estate tax. A municipality may retain the power to decide for three years at a time. The previous three-year period ends on 31 December 2024.

A new notification regarding the retention of municipal decision-making power must be submitted to the Tax Administration by November 30, 2024, if the municipality retains decision-making power for applications initiated between January 1, 2025 and December 31, 2027.

The Tax Administration has decided, pursuant to Section 48, subsection 2 of the Tax Collection Act (11/2018):

The Tax Administration will decide on exemption applications for municipal tax, insured person's health insurance premium and real estate tax filed between 1 January 2025 and 31 December 2027, unless the municipality reserves the right to decide. The notification regarding the power of decision must be submitted to the Tax Administration no later than 30 November 2024..

The municipality's notification must indicate whether the withholding of decision-making authority applies to municipal tax, real estate tax, or both. The authority that decides on the application for exemption from municipal tax has the power to decide on the insured person's health insurance premium.

The municipality's notification is sent by post to the Tax Administration's address: Tax Administration, Taxation Unit, Control Unit, P.O. Box 325, 00052 VERO or by email. tax@vero.fi

The mayor presents the financial situation at the meeting.

The mayor presents and provides information on current issues and events that are pending and in preparation.

According to Section 1 of the Pre-emption Act (5.8.1977/608), a municipality has a right of pre-emption in the sale of real estate located in the municipality in order to acquire land for community development and for recreational and conservation purposes. The right of pre-emption means the municipality's right to redeem the sold real estate for the purchase price agreed upon by the seller and the buyer. When using the pre-emption, the municipality takes the place of the buyer and acquires ownership of the area that is the subject of the sale under the terms of the deed of sale.

The municipality must also compensate the buyer for direct costs related to the transaction and pay interest on the costs in accordance with Section 3, Paragraph 2 of the Interest Act (633/1982). According to Section 21 of the Pre-emption Act, the municipal government decides on the exercise of the pre-emption right. The decision must be made and the registration authority, i.e. the Land Survey, notified of it within three months of the certification of the transfer deed.

The decision must be given without delay as a demonstrable notification to the buyer and seller.

Attached material: property transfer list

Real estate transfer notices:

9 property transfer notices

Official decisions:

Municipal Mayor Section 8

Director of Finance and Administration §

Financial Manager § -

Education and Welfare Board 4.9.2024

§ 71 Legality and quorum of the meeting

§ 72 Selection of the minutes inspectors

§ 73 Approval of the academic year plan for the 2024-2025 academic year

§ 74 Approval of plans

§ 75 Appropriation and organizational change for cleaning services transferred to the technical committee

support services

§ 76 Kihniö Comprehensive School's TYHY group's presentation to the Education and Welfare Board

§ 77 Interim report 01.01. - 30.06.2024

§ 78 Decisions of office holders

§ 79 Notification and other matters

The Education and Wellbeing Committee's proposal for a free gym trial for municipal employees will be forwarded to the personnel division for consideration.

Technical Committee 11.9.2024

§ 70 Legality and quorum of the meeting

§ 71 Selection of the minutes inspectors

§ 72 Administrative obligation pursuant to Section 14 of the Soil Materials Act on the farm Louhimo RN:O 250-407-3-164

§ 73 Administrative enforcement matter pursuant to Section 14 of the Soil Materials Act on the farm Vähämäki RN:O 250-407-3-164

§ 74 Request for rectification in a supervisory matter pursuant to Section 14 of the Soil Materials Act

§ 75 Administrative enforcement action pursuant to Section 175 of the Environmental Protection Act on the farm Männikkö RN:o 250-407-1-79

§ 76 Interim financial report 1 January - 30 June 2024

§ 77 Financial performance 1.1 - 31 March 2024

§ 78 Current affairs

§ 79 Selection of electricity supplier for the period 01.04.2025 – 31.12.2028

Section 80 Demolition permit for real estate 250-403-7-7

Youth Council 5.9.2024

Trade item:

The property subject to the sale has a valid local plan approved on 28.05.1990. There are no buildings or structures owned by the seller on the property. There is a children's playground known as the OP Family Park in the area.

The purchase price is two thousand (2.000) euros,

Property code 250–403-7-216. The subject of the sale is the property called Säästöranta located in Kihniö, RN:o 7:216.

According to the property register, the area of ​​the property is 6.610 square meters.

Appendix 8 Draft deed of sale

The subject of the sale is a plot of land on the Mansikkamäki 1:63 farm (lot no. 250-403-1-63) located in the municipality of Kihniö. The area of ​​the plot for sale is approximately 4900 m2, which will form a plot in accordance with the local plan. The plot contains a residential building and two warehouse buildings.

The purchase price is thirty-two thousand (32.000) euros. The purchase price shall be paid in full to the account specified by the seller on the date of the transaction. Interest shall be paid on the overdue purchase price in accordance with the Interest Act.

The property is being sold leased (1h + common areas). The notice period is 6 months. Part of the older warehouse building is also leased and the other premises are used as workshop and storage facilities for the technical services of Kihniö Municipality. Release of the warehouses is 1 month from the sale.

Annex 9: Draft deed of sale

The Ministry of Education, Culture and Sports has made a decision to change the current year's state transfer funding for education and culture. The change is based on the revision of the basic price of the home municipality compensation made by the Ministry of Education in June. That basic price is also used as a basis for calculating the unit prices of state transfer funding for education and culture targeted at pre-school and primary education. As a result, the state transfers of almost all municipalities (except 10 municipalities) will increase slightly. The total increase in the municipalities' state transfers is approximately 23 million euros. The change will affect the state transfer of the Kihniö municipality's OPM by +8.583 €.

Appendix 10 decisions