Dundee City Council is on course to overspend its current budget by just over £1.5 million.
That is according to a new report, due to go before the policy and resources committee this evening, which highlights the local authority’s projected financial position against the adjusted 2010/11 revenue budget.
The council’s city development department is on course to have the largest overspend with £2.414 million.
“The department is projecting that expenditure on winter maintenance will be considerably greater than budgeted due to the cost of providing the level of activity undertaken during the recent adverse weather conditions,” read the report prepared by the director of finance, Marjory Stewart.
“In addition, property costs for City Square complex are expected to be greater than budgeted, reflecting the current level of responsive repairs and maintenance and health and safety works that are being required to be undertaken.”
The report also went on to highlight a drop in income relating to building warrant fees, planning applications and property inquiries due to the turbulent economic climate.
Meanwhile, the council’s social work department is on course for a £1.720 million overspend the majority of which is down to the significant cost pressures surrounding adult care.
“In addition, the department are projecting increased expenditure within children services, where family placements are expected to be greater than budgeted due to the increased number of children requiring permanent substitute care away from their birth parents.”
Other departments struggling to stay within budget are education (£340,000) and other housing (£60,000).
However, there are council departments helping offset these figures with lower than expected spending.
One such example is waste management which is forecast to underspend by £498,000.
“Reduced expenditure on third party payments to cleansing services is anticipated, mainly because of projected savings in staff costs and leasing payments,” continued the report.
Elsewhere a £1.4 million underspend is forecast for capital financing costs thanks to lower than anticipated interest rates together with a reduction in required level of borrowing.
Other departments on course to underspend are leisure and communities (£100,000), environmental health and trading standards (£142,000), finance general (£158,000), finance revenues (£365,000) and other contingency (£369,000).
In conclusion the report read, “As in previous years, the director of finance will work with all the chief officers of the council to monitor the council’s 2010/2011 revenue budget and, through prudent budget management, take every reasonable action to achieve an out-turn position below or in line with the approved 2010/2011 revenue budget.”
Last month Dundee City Council unveiled almost a £15 million cut from the 2011/2012 budget.