The city council is set for a budget overspend of more than half-a-million pounds — with one department nearly £2.5m in the red — a new report has revealed.
Forecasts suggest that the local authority, which has had to cut tens of millions of pounds from its spending over the last few years, will end up £610,000 over budget come the end of March.
The children and family services department is expected to be £2.55m over budget, due to costs associated with residential schools, secure care and special transport provision.
Areas including city development (£250,000) and neighbourhood services (£50,000) are also expected to go over-budget.
However, the council anticipates that it will make up some of the deficit through savings in areas including capital financing costs.
It will also receive £240,000 more in “miscellaneous income”, covering an increased share of cash surpluses from Tayside Contracts, and an extra £1m from changes to council tax.
A report from Marjory Stewart, the council’s director of corporate services, outlined the predicted overspend to councillors.
She said that the cash in the children and family services department had been spent on the Continuing Care programme — which allows youngsters in care to stay at their current residence until they are 21, longer than previously.
However bosses at Dundee House have vowed to work towards getting the council back on an even keel by the end of the year.
Ms Stewart said: “The overall projected 2016/2017 general fund revenue outturn position for the city council is an overspend of £610,000 based on the financial information available at November 30 2016.
“A system of perpetual detailed monitoring will continue to take place up to March 31 2017 with the objective of the council achieving a final outturn which is below or in line with the adjusted 2016/2017 revenue budget.”
Meanwhile, the council’s housing revenue account, which tracks all income and expenditure on social housing, is projected to show an equal balance by the end of the financial year.
This is despite a predicted increase in repairs and relets in social housing due to increased demand.
A spokesman for Dundee City Council said: “Elected members receive regular update reports throughout the year on the council’s financial position.
“We are confident that when the financial year ends the authority will deliver a balanced budget, as it has done every year since its creation in 1996.”