Moray Council yesterday hailed its “culture of prudence” after agreeing that millions of pounds saved over the last financial year would be pledged towards the new Elgin High School.
Head of financial services Margaret Wilson revealed the local authority had amassed a surplus of more than £5million during the 12 months.
She said: “Moray Council has turned £5,179,000 over the year – an underspend in accounting terms.”
The extra cash will be added to council reserves, but at yesterday’s meeting of the full council members agreed to set aside £2million towards the cost of the new school.
Council convener Allan Wright said: “In education we have a surplus of £1.3million, and the biggest single saving is £1.4million, which was earmarked for extra costs which we didn’t need.
“These are extremely encouraging figures.
“For some years now a culture of prudence has been growing throughout the council, and taxpayers should be pleased to see how every manager and budget-holder is looking after the public purse.
“A sum of £2.2million set aside to balance the budget last February was not needed at all,” he went on.
“That has allowed us to fund the council’s share of the Elgin High School costs from the day-to-day budget – meaning we have met all the conditions attached to the funding of the new school.
“Any further delay in building it is not down to the council.”
Construction of a new high school in Elgin was announced in 2012, and work was due to begin this March.
However, the project has stalled amid concerns about the escalating price tag, which now sits at £28.2million.
Hitches have emerged in the Scottish Government’s share of the scheme because of new European accounting legislation, known as ESA10.
Holyrood is having to change its funding model for delivering major capital schemes – a process which could take until the end of this year to complete.