DUNDEE CITY Council will have to find savings of £6.5 million to ensure council tax rates remain frozen for the next year.
The figure is set out in a report to be presented to councillors next week.
Corporate services director Marjory Stewart said savings totalling £2.8m have already been taken into account in drawing up a provisional budget for 2013-14.
This includes the effect of voluntary redundancies and early retirements approved last year, along with the decision not to fill vacancies in certain departments.
There have also been savings in the cost of running the council’s fleet of vehicles and its energy, water and phone costs.
The biggest source of funding for local authorities is the Scottish Government.
All 32 councils have been told by ministers they will only get their full grant if they do not raise the council tax and maintain teacher numbers, including offering places to probationer teachers.
Ms Stewart’s report warns: “In the event that the council does not agree to the full package of measures related to the local government finance settlement then the loss of grant would be circa £2.8m.”
The estimate for total spending for 2013-14 is £346.5m, rising only slightly to £346.8m the following year, on the assumption that more than £45m will be raised in council tax each year.
Ms Stewart said senior council officers have spent months preparing the provisional budget.
She added: “Based on current assumptions, the council would require to identify budget savings totalling £6.5m in order to achieve a council tax freeze in 2013-14.”
A special meeting of the policy and resources committee will be held on February 14 to set the council tax for 2013-14.
A separate report shows that the council’s revenue budget was £1m overspent at the end of November, largely owing to greater than expected costs in social work.
Officers are trying to put spending back on track by the end of the financial year.
grsmith@thecourier.co.uk