Caerphilly County Borough Council has been criticised for having £178.925 million in useable reserves.
Councillor Colin Mann, leader of the council’s main opposition group, Plaid Cymru, raised concerns over the amount of money in reserves at a Policy and Resources Scrutiny Committee meeting on Tuesday, February 22.
Councils cannot borrow money for day-to-day spending, so hold usable reserves for unexpected events or emergencies.
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The millions of pounds in reserves are allocated to sectors such as: economy and environment, corporate services, education and life-long learning, as well as social services and housing.
Cllr Eluned Stenner, Cabinet Member for Performance, Economy and Enterprises, said: “This issue comes up annually. All reserves serve a purpose, once they’re gone they’re gone.
“The storms have shown us that we need reserves there to look after our residents.”
For the financial year 2019/2020, Caerphilly County Borough Council had the second highest amount in reserves, out of all local authorities in Wales – only Rhondda Cynon Taf had more.
Cllr Mann, who represents the Llanbradach ward, said: “I am wondering what makes this council unique to every other council in Wales.”
Stephen Harris, the council’s Head of Corporate Finance, said the council is the fifth highest spending local authority in Wales.
For context, the county borough has the fourth highest population of any local authority area in Wales, with around 180,000 residents.
Labour councillor Gary Johnston, who represents the Newbridge ward, said: “I am not against holding reserves for a rainy day, especially after the recent storms, but there is holding reserves and holding the amount we have.”
Cllr Johnston suggested the money could be used to draw in businesses to invest in the area and create jobs for residents.
Stephen Harris said the council has invested £3.5 million in the regeneration scheme, with the aim of creating jobs in the county borough.
The Plaid Cymru group has previously criticised the council over the amount of money kept in reserves.
In October 2021, Cllr Mann accused the council of “hoarding” the money.
