Agenda item

To consider any risks arising from the strategy before it is presented to the full Council for adoption.

DECISION:

·       To accept the report and to note the information and relevant risks

·       To support the Cabinet Member for Finance's intention to submit the Strategy to the Full Council for approval on 5 March 2026

·       That an encouraging presentation by Arlingclose, the Council's Treasury Management Consultants (30-01-2026) had been very beneficial, and had given Members confidence and reassurance that the Council was on the right track

The Strategy was submitted by the Investment Manager. It was noted that the Strategy provided an overview of the Council's Capital and Treasury Management activities for 2026/27, reiterating that Members had been invited to a recent presentation by the financial advisers, Arlingclose, explaining the detail behind the strategy in a comprehensive and easily understood manner.

Reference was made to an overview of capital activities and attention was drawn to the fact that the Council planned capital expenditure of £40.2 million in 26/27, with the main schemes listed in the report, along with the funding sources. It was noted that the main external sources were the Welsh Government and the funds were Cyngor Gwynedd's resources, with the remainder of the funding coming from loans that would be repaid over a number of years, normally from revenue resources or from income from the sale of assets, which was consistent with the actions of previous years. This meant that the indicator - Council's Capital Financing Requirement, would be £189.8 million by the end of the 26/27 financial year, namely the level that the Council's long-term borrowing should remain below.

In the context of the Borrowing Strategy, it had been highlighted recently that there had been no long-term borrowing requirement, only a low-cost, short-term requirement over the end of the financial year; this would continue with no long-term borrowing anticipated for Cyngor Gwynedd activities, and that the Council's debt would remain below the Capital Financing Requirement.

Reference was made to the Liability Benchmark which was now reported to the Committee on a quarterly basis. The Council would expect its borrowing to be higher than the liability benchmark up until 2026 as the Council had a high level of reserves.

In the context of the Investment Strategy, it was noted that the Council's policy was to prioritise security and liquidity over output to ensure that money was available to pay for the Council's services. It was noted that sums were always kept to ensure continuous liquidity.

Reference was made to risk management and governance, together with details of the Council's long-term liabilities e.g., to cover the deficit in the Pension Fund, and the impact of the funding costs on cash flow where the percentage appeared low and fairly consistent with previous years. It was also confirmed that officers had the relevant skills and knowledge, and confirmation that Arlingclose provided a financial advisory service to the Council.

The Committee was requested to accept the report, noting the information and the risks and to support the Cabinet Member for Finance's intention to submit the strategy to the Full Council for approval on 5 March 2026.

The members thanked the officer for the report

RESOLVED:

·        To accept the report and to note the information and relevant risks

·        To support the Cabinet Member for Finance's intention to submit the Strategy to the Full Council for approval on 5 March 2026

·        That an encouraging presentation by Arlingclose, the Council's Treasury Management Consultants (30-01-2026) was very beneficial, and gave Members confidence and reassurance that the Council is on the right track