Agenda item

To consider the report for information.

DECISION:

To accept the report for information

A report was submitted by the Investment Manager, reporting on the actual results of the Council's treasury management for 2025/26 up to 30 September 2025, against the 2025/26 Treasury Management Strategy approved by the Full Council in March 2025. It was noted that the strategy asked the Investment Manager to report on prudent treasury management indicators every quarter to the Committee.

It was reported that the period had been a very busy one for the Council's treasury management activity and that the position on 31 March 2025 was very strong with the Council in a net investment position of £53m because of the high level of investments and operational capital. This included the North Wales Ambition Board funding.

It was highlighted, during the period, that there was a change to the Council's borrowing level, after repaying a historical loan. It was explained that the loan of £16.2m with Barclays had a maturing date of 2074, but that an offer had been received to repay it early on very favourable terms, which saved long-term interest costs for the Council. Reference was made to other loans held by the Council with the Public Works Loan Board, but there were no advantages from repaying these early at present.  

Attention was drawn to treasury investment activity, noting that the Council continued to invest in banks and building societies, local authorities, money market funds, debt management office and pooled funds and that these were consistent with the type of investments made by the Council for many years now and that the risk metrics and earnings were consistent with other authorities.

It was noted that all activities had fully complied with the CIPFA code of practice and the Council's Treasury Management which was good news and evidenced firm control over the finances. In the period in question, investments were made at a higher level than the approved level for the banks and money market funds, because the Council had a high level of money, and options were scarce. It was reiterated that steps had been taken to ensure that this would not happen in the future by opening more accounts to spread out the money.  

Attention was drawn to the Liability Benchmark, noting that it was an important tool to establish whether the Council was likely to be a long-term external borrower, and therefore shaped the strategic focus and refined decision-making. It was indicated that the Council expected to remain above its benchmark up to 2027 because the Council held reserves, and the cash flow to date had been below the assumptions made when the money had been borrowed. It was also noted that there was no need to borrow in the longer term, based on current projections; nevertheless, it was commented that there may be a need to borrow in the short-term in the near future.

Finally, reference was made to the prudential indicators, and it was reported that there was also full compliance here.

The members thanked the officer for the report.

RESOLVED

To accept the report for information