Council chiefs will be quizzed on SIC spending amid ongoing concerns about the authority’s finances.
Chief executive Maggie Sandison and head of finance Paul Fraser will attend the meeting of the Association of Shetland Community Councils this summer.
A proposal for an SIC strategy review has been put forward by chairman of Lerwick Community Council, Jim Anderson.
He said “a number of members” had expressed concern about “the continued overspending” by the council and the “inadequacy of the current strategic plans intended to address it”.
“While we recognise that financial management ultimately sits with the council, the ongoing use of reserves and the absence of a clear, robust strategy for reducing this overspend is causing increasing concern within the community,” he stated.
“We would therefore welcome clarification from the council on what actual strategy exists to bring spending under control and ensure the long-term sustainability of Shetland’s finances.”
However, one senior councillor said at least some level of high spending within the council was necessary.
Depute leader Gary Robinson cited inflationary pressures which had pushed up spending on the new Fair Isle ferry as a prime example.
“We got the UK government through for that, but inflation ran amock and that project is costing more than anticipated,” he told The Shetland Times.
“A lot of spending is one-off capital costs, mainly around the Fair Isle Ferry.
“We’ve had discussions with the Accounts Commission following the audit report, and I think they’re more relaxed than they were.
“That’s the main thing, because the Fair Isle Ferry is very nearly a £20 million contribution that the council is going to have to put to that – but the alternative was probably worse, in that we don’t do it and lose the external funding.
“Clearly it’s a lot of money, but the council has been helped by a really buoyant stock market in recent times.”
However, he added there was a “general consensus” that that would not continue.
“So it would be prudent to get our finances under control.”
The new Fair Isle ferry was one of a number of projects outlined in the council’s five year investment plan back in March.
Other projects in the pipeline for delivery which, between them, are worth almost £100m include an additional relief ferry, the new Brae school, the Levenwick and Cullivoe roads and the Knab redevelopment. Another strand of that final project could also see the Janet Courtney Hostel turned into housing.
All that is completely separate from the fixed link plans, which will undoubtedly be reliant on external funding and borrowing.
Mr Robinson said there were questions around whether the council had the necessary policies to get, and keep, its spending under control, although he added: “I think it arguably does.”
Earlier this month SIC councillors held a lively debate on finance including the ongoing reliance on reserves – and how to balance the books.
The latest figures suggest a cumulative budget gap of £134.3 million by 2029/30.
Elected members even voiced hope that Shetland MSP Hannah Mary Goodlad’s new position as public finance minister could help smooth the path for Shetland’s financial outlook.
Ms Goodlad later insisted her new job must be distinct from her daily role as Shetland’s MSP.
“It’s really important for me to state, I’m not the finance director of the SIC,” she told The Shetland Times.
The meeting of the Association of Shetland Community Councils will be held on Thursday 2nd July at Islesburgh Community Centre in Lerwick.