Aberdeen council leaders have hailed a “strong performance” after new financial data revealed the authority has a £5million underspend for the year.
The unaudited accounts were presented to yesterday’s audit committee for the 2018/19 year and also showed the authority’s long term assets, including buildings, have increased in value by £128million.
But they also highlighted that the council’s debt stands at around £1billion with a drop in reserves of around £13million.
Aberdeen faces more scrutiny than most other councils due to the 2016 issuing of a bond on the London Stock Exchange and the awarding of a credit rating.
Sensitive information now needs to go through new governance requirements and the £350million issue means that repayments and interest will hit £60.5m by 2023.
A massive infrastructure programme is underway throughout the city with the £333million TECA and the £30million art gallery redevelopment due to be completed this year.
A report to yesterday’s committee reads: “Aberdeen is at the heart of one of the most prosperous regions in the UK outside of London.
“The 2018/19 financial year results showed a surplus of £5million for the year across all council accounts.
“This shows another strong performance over the year and this surplus will be set aside to provide investment to ensure longer term stability in service delivery going forward.
“Investment in providing an economically diverse and culturally rich environment, we believe, will continue to make Aberdeen a location of choice.
“In 2018/19, we received total income of £438million with this comprising £228million and £117 million raised locally through non-domestic rates and council tax respectively whilst £94million was received from government grants, with the balance coming from service related grants, fees, charges and other income.
“Total debt outstanding amounts to £1,056.6 million (2018 £936.9 million).”
Council co-leader Douglas Lumsden said: “The 2018/19 financial year results showed a surplus of £5million for the year across all council accounts.
“This shows another strong performance over the year and this surplus will be set aside to provide investment to ensure longer term stability in service delivery going forward.”
Fellow co-leader Jenny Laing said: “These accounts show the council’s finances are in excellent shape.
“Investment in providing an economically diverse and culturally rich environment, we believe, will continue to make Aberdeen a location of choice.”
SNP group leader, and audit committee convener, Stephen Flynn said: “I’m not sure the public will look kindly on either councillor Laing or councillor Lumsden for boasting of a surplus just a matter of weeks after hiking council tax by 4.5% and slashing vital council services.
“The reality is that this administration has built up a debt pile that is now in excess of £1billion – they don’t seem to realise that this money has to be paid back and that this will come at the expense of other services.”
