According to Section 110 of the Local Government Act, the council must approve the municipality's budget for the following calendar year by the end of the year, taking into account the financial responsibilities and obligations of the municipal group. In connection with the approval of the budget, the council must also approve a financial plan for three or more years (planning period). The budget year is the first year of the financial plan.

The budget and plan must be prepared in such a way that they implement the municipal strategy and ensure the conditions for carrying out the municipal tasks. The budget and plan approve the operational and financial objectives of the municipality and the municipal group.

According to the Local Government Act, the financial plan must be balanced or in surplus. The deficit accumulated in the municipality's balance sheet must be covered within a maximum of four years from the beginning of the year following the approval of the financial statements.

Part I of the budget document contains general justifications and general objectives for the planning period, as well as historical and framework information on the economy and income statements, a financial statement and verbal justifications of the budget by department/task area. Part II contains the numerical part of the 2026 budget and the related income statement, investments and financing plan. Part III contains the financial plan for 2027–2028 and the related income statements, investments and financing plan. The Kihniö Municipal Strategy 2022–2030 is attached at the end of the budget document.

The budget proposal for 2026 has a surplus of 123.757 euros. The annual margin is approximately 560.008 euros positive. Operating expenses are 7.631.809 euros and operating income is 3.137.391 euros. The net loan amount will decrease by approximately 639.000 euros in the budget year 2026. The total loan amount at the end of the budget year is approximately 4.807.000 euros, which is 2.870 euros per inhabitant. Net investments are approximately 265.000 euros in 2026.

The budget framework took into account, among other things, the savings agreed in the economic adjustment program, salary increases of +2,47% and service purchases of +1%, as well as other department-specific considerations. The departments achieved the framework targets, except for the Education and Welfare Board, which exceeded the framework by approximately €35.000. The municipal government's framework target was significantly undershot, so the excess of the education service could be approved in the preparation.

The Cooperative Institution discussed the budget and financial plan at its meeting on November 24, 2025.

The department heads and the finance manager will be experts in the meeting during this time.

Attached is the text of TA 2026

Negotiations have been held between the Pirkanmaa Welfare Area (Pirha) and the municipality of Kihniö during 2025 regarding the municipally owned premises that will remain for Pirha's use. As a result of the negotiations, it has been agreed that, as of 1 January 2026, Pirha will continue to lease the following premises:

- Local service point (former Health Center premises 1.197 m2) new agreement

- School center space 14 m2 Toimela III school building, school curator's office space, continuing agreement

- School nurse's space in the Fire Station building RA30005723, continuing contract

- The rental of the premises of the Pirkanmaa Rescue Department (fire department) in the municipality of Kihniö will continue according to the current agreement. An amendment to the agreement will be attached for cleaning the premises at €238,33 VAT 0 / month. The rent will be charged retroactively from the beginning of 2025.

At the same time, it has been agreed that the lease agreements will expire on December 31, 2025 for the following premises:

- The state of social services in Lottala

Appendix 1 lease agreement health center, Appendix 2 lease terms Appendix 3 floor plan Appendix 4 amendment appendix fire station cleaning

As an expert, the technical director during this matter.

The municipality of Kihniö has organized an open auction on the Kihniö municipality-owned building located at Mikkolantie 4 (tel. 250-403-8-238) on the Kiertonet.fi website. The subject of the sale is a detached house built in 1991, which has served as a 3-room dormitory. An area of ​​approximately 1450 m2 will be formed around the building in the subdivision. The plot is designated as a block area for detached houses (AO) in the local plan. The building right of the plot is approximately 290 km2. The highest bid was 5.600 euros. The transaction has been discussed with the bidder and additional information about the transaction has been provided.

The Technical Committee has considered the matter on 25 November 2025 § 87

The technical committee proposed that the received offer be accepted.

Appendix 5 draft deed of sale + map appendix Appendix 6 excerpts

As an expert, the technical director during this matter.

The premises used by primary healthcare, specialized healthcare, social services and rescue services were transferred to the management of the welfare area no later than 1 January 2023, in accordance with Section 22 of the Act on the Implementation of the Reform of Social and Health Care and Rescue Services and the Entry into Force of the Legislation Related to It, 616/2021 (the so-called "Enforcement Act").

The welfare area and the municipality had to conclude a lease agreement for the management of the premises, valid until at least 31 December 2025. The above-mentioned regulation enabled the leasing of premises to the welfare area without the obligation to incorporate as referred to in Chapter 15 of the Local Government Act (410/2015).

When the statutory rental obligation ends on 31 December 2025, the municipality must take into account the incorporation obligation laid down in Section 126 of the Local Government Act. According to its subsection 1, when a municipality performs a task referred to in Section 7 in a competitive market situation, it must assign the task to a limited liability company, cooperative, association or foundation. Section 126, subsection 2 of the Local Government Act provides for situations in which a municipality is not considered to be operating in a competitive market situation. Section 127 of the Act provides for exceptions to the incorporation obligation laid down in Section 126.

The rental of real estate and business premises to a welfare area is an activity subject to the incorporation obligation and is not directly included in the exemptions from the incorporation obligation under Section 126, Paragraph 2 of the Local Government Act. However, if the market effects of the rental activity are at most minor, the minor exemption from the incorporation obligation under Section 127, Paragraph 1, Paragraph 1 of the Local Government Act may be applied.

The municipality of Kihniö has the following properties, which the Pirkanmaa Welfare Region will also rent from 2026 onwards to carry out its own statutory social welfare and play activities:

1. Local service point (formerly the health center premises)

2. Kihniö Fire Station

3. Individual spaces within the school and fire station premises; spaces for the school curator and school nurse

Starting points for incorporation

Explanation of the conditions for not incorporating:

The social and recreational facilities and housing properties leased by the welfare area are, in principle, operating in a competitive market situation in accordance with Section 126 of the Local Government Act. The municipality is responsible for assessing whether there is a market for business premises in the municipality that would require the leasing of these properties to be incorporated. Each municipality assesses its own situation from the perspective of the legislation, taking into account the fact that the threshold for interpreting that there is no property rental market in the municipality is high.

The municipality of Kihniö has conducted a market survey and a corporate incorporation study with Lakitilitoimisto Oy on the markets in the area and the prerequisites for corporate incorporation (attached). The study focused on the Kihniö health center and fire station properties. The school curator's premises are located on the school property, which is entirely in the municipality's use. The school nurse's premises are on the fire station property.

Based on the statement, it can be stated that although according to Section 126 of the Municipal Act, operations in a competitive market situation must be incorporated, The exception basis under Section 127 of the Municipal Act applies to Kihniö's social welfare and recreational facilities: low activity. Based on the evidence from the study, it can be stated that a very small proportion of the municipality's operations are directed to the market in a competitive situation.

Even if the municipality does not incorporate real estate, it must still ensure market-based pricing and separate accounting.

Target-specific justification:

Local service point (formerly in the premises of the health center)

Based on the draft lease agreement, the Pirkanmaa welfare area (Pirha) would be renting 1197 m2 of space at Kivinevantie 11-13 (health center) for the needs of a local service point.. This corresponds to approximately 43,5% of the health center's facilities.

The lease agreement is valid until further notice, with a 12-month notice period. In addition to the above, it has been agreed that the agreement will end no earlier than December 31, 2026. The premises are therefore not subject to a long-term lease agreement, which could not be considered to have a minor market impact due to the long-term nature of the agreement.

The last commercial building in the Kihniö municipality was built in the early 1990s. There are no other buildings in the municipality, other than the current health center building, that would be suitable for a local service point with reasonable modifications.

The nearest health and social services stations are located in Parkano and Virrat. In principle, the neighboring municipalities of Parkano and Virrat could be considered part of the relevant market area. The local service point is intended specifically for customers in the Kihniö area.

It can also be noted that the health center's facilities were designed and built for social and health care activities, so it may be difficult to sublet them for other purposes.

Kihniö Fire Station

The fire station space could also be rented to other operators (e.g. companies, associations). For this reason, when a municipality rents it to a welfare area, the rental would in principle be considered to be taking place in a competitive market situation.

The lease agreement is valid until further notice and the notice period is six (6) months. The agreement can be terminated easily and relatively quickly. The agreement is not long and fixed-term. This suggests that the agreement does not necessarily constitute a permanent market disruption. On the other hand, the agreement has been renegotiated and its terms differ from the transitional lease agreement. The building is mainly used by the welfare area.

Renting a fire station building for a welfare area is clearly closer to market-based operations than renting a health center building, and is therefore more susceptible to market disruptions.

The fire station building underwent a major renovation in connection with the transition to a hybrid model. The fire station building requires certain special structures to be suitable for its purpose. Naturally, the needs of the emergency care unit must also be taken into account in hybrid facilities.

The facts are that the premises can be structurally rented for other activities at reasonable costs. On the other hand, there is no other premises in Kihniö to which the hybrid station could be moved without significant modification costs. Pirha has not made a decision to terminate or reduce rescue operations in Kihniö. Pirha has contractually committed to placing the hybrid unit in the current premises, of course with a contract that can be terminated with a six (6) month notice period.

Since no realistic alternative location can be found for the fire station and it has been operating in its current location for decades, the market impact can be considered minor. Continuing the fire station operations in the current premises will also not cause market disruption, as the space is fully used by the municipality and the welfare area, and therefore could not even be offered to the market.

The study has also considered the conditions for incorporation. The municipality will review incorporation if necessary. The Pirkanmaa Welfare Region has not requested the incorporation of the operations.

Risk of incorrect procedure

Any possible intervention by the FCCA in the situation would primarily take place through negotiations. Supervision is ex post, and there are no retroactive sanctions. The risk of sanctions is assessed to be low, as long as the activities are documented appropriately and pricing and accounting are managed in accordance with the law.

Appendix 7 statement

In the 2025 budget, the municipal council has granted the municipal government the authority to raise a loan of 500.000 euros during the budget year.

The proposed changes concern the composition of the chamber, the convener and the draftsman.

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:

3 property transfer notices

Official decisions:

Municipal Mayor §

Financial Manager §

Minutes of committees and divisions:

Education and Welfare Board 19.11.2025

§ 65 Legality and quorum of the meeting

§ 66 Selection of the minutes inspectors

§ 67 Budget for 2026 and financial plan for 2027-2028

§ 68 Statement on the situation at the Family House

Section 69 Proposal for amending the administrative regulations regarding the Children and Family Affairs Division

§ 70 Fees charged by the library in 2026

§ 71 Budget implementation report 01.01. - 30.09.2025

§ 72 Decisions of office holders

§ 73 Notification and other matters

Technical Committee 25.11.2025

§ 83 Legality and quorum of the meeting

§ 84 Selection of the minutes inspectors

§ 85 Technical Committee budget proposal for 2026, financial plan for 2027-2028

and budget text 2026

§ 86 Review of rents for housing loans and privately financed apartments

§ 87 Sale of building and plot Mikkolantie 4

§ 88 Financial performance 1.1.2025 - 31.10.2025

§ 89 Decisions of office holders

§ 90 Appointment of a representative to the Children and Family Affairs Division

§ 91 Current affairs

§ 92 Change in the purpose of use of budget investment appropriations

Arrivals:

1. Pirkanmaa ELY: Employment review October, Kihniö unemployment % 7,3

2. Contract municipality calculation Te-palvelut 10/2025