A new report has revealed Aberdeen City Council is sitting on £100million in reserves.
Audit Scotland has found that the local authority has around £100million “usable reserves” in its coffers.
But this is around £28million less than in the financial year 2014/15.
The report, discussed by the council’s audit committee yesterday, puts the fall down to the authority using the back-up cash on a number of large-scale capital projects such as the Third Don Crossing.
It reads: “This decrease is attributable to the use of the capital fund to finance capital expenditure and use of earmarked reserves.
“The total level of usable reserves had been increasing over the previous three years and these are now being used to support the strategic infrastructure programme.”
In 2010/11 the level of was less than £60million but reached a high of more than £120million in 14/15.
Last night finance convener Willie Young said the council was building up its war chest ahead of a “rainy day”.
He said: “We know that in the future we will be receiving less money from the Scottish Government so we are saving now while the sun shines before the rain starts to fall.
“We have been very prudent with our finances, we recognise that people will want to see the same services delivered and for this to happen we need the money in place.
“This is a far cry from the days of the SNP with £127million in cuts and Kevin Stewart was telling us the city is a snowflake away from bankruptcy.
“We usually come forward with an underspend which we use on big capital projects.
“I think our strategy protects the council and the city for the future.”
Last night Liberal Democrat group leader Ian Yuill said: “Any organisation needs to have reserves and it makes sense to build these up in difficult times.
“You can’t spend reserves more than once, although using them on particular projects on occasion can be useful.”
But SNP group leader Stephen Flynn said: “I think this serves as a timely reminder that this council is sitting on significant funds of money while often pleading poverty at the same time.
“I’m very much of the opinion that the council should spend within its means.
“But the report does highlight the hypocrisy of the administration rhetoric.”
