Appendix IV – Monitoring of Prudential Indicators – Period ending 31 March 2024

Perth and Kinross Council · 24 April 2024
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PERTH AND KINROSS COUNCIL
PRUDENTIAL INDICATORS - 6 MONTHS ENDING 31 MARCH 2024
APPENDIX IV
1 Financing Costs:Net Revenue Stream
The ratio of Capital Financing Costs (Loan Charges) to the Council's net revenue stream shall not exceed the following limits, which are based on historic levels, and allow some
headroom for movement in interest rates. The estimated Financing Costs below are based on the latest monitoring figures.
2023/24 2024/25 2025/26 2026/27 2027/28
Prudential Limit - General Fund 15.00% 15.00% 15.00% 15.00% 15.00%
Estimated Ratio of Financing Costs to Revenue 6.49% 7.40% 8.90% 9.13% 9.29%
Prudential Limit - HRA 30.00% 30.00% 30.00% 30.00% 30.00%
Estimated Ratio of Financing Costs to Revenue 21.93% 20.94% 23.11% 23.22% 24.57%
2 Gross & Net Borrowing and Capital Financing Requirements
For prudence, net external borrowing must not exceed the total capital financing requirement, thus ensuring that over the medium term, borrowing is only undertaken for capital
purposes. The estimated total net borrowing and Capital Financing Requirement at the end of each of the years are as follows:
Actual as at Projected Projected Projected Projected
31-Mar-24 31-Mar-25 31-Mar-26 31-Mar-27 31-Mar-28
Net External Borrowing* 682,369,000 899,737,000 999,620,000 1,089,403,000 1,159,285,000
Gross External Borrowing* 747,902,000 939,737,000 1,024,620,000 1,114,403,000 1,184,285,000
Capital Financing Requirement 791,035,000 959,316,000 1,044,110,000 1,134,132,000 1,204,043,000
*For the purpose of this indicator, Borrowing includes the outstanding liability under PPP/PFI contracts.
3 Estimates of Gross Capital Expenditure
The total estimated Capital Expenditure contained within the Council's Budgets for each year is as follows, based on updated monitoring figures.
Composite Programme 2023/24 2024/25 2025/26 2026/27 2027/28
Current estimate 160,138,000 232,568,000 115,913,000 103,406,000 76,914,000
Original Budget Estimate (including Budget Motion) 194,880,000 184,661,000 113,465,000 69,816,000 48,219,000
Movement in Estimated Capital Expenditure (34,742,000) 47,907,000 2,448,000 33,590,000 28,695,000
The Original Budget Estimates are those per the 2023/24 to 2027/28 Composite Capital Budget Report on 1 March 2023
The latest estimates for Capital Expenditure are based on the F&R Capital Monitoring Report No 4 on 24 April 2024.
HRA Programme 2023/24 2024/25 2025/26 2026/27 2027/28
Current estimate 19,249,000 21,536,000 19,942,000 15,633,000 19,845,000
Original Budget Estimate 18,457,000 13,858,000 18,669,000 19,044,000 19,044,000
Movement in Estimated Capital Expenditure 792,000 7,678,000 1,273,000 (3,411,000) 801,000
The Original Budget Estimates are those per the 2023/24 to 2027/28 Housing & Social Wellbeing Budget Report on 25 January 2023.
The latest estimates for Capital Expenditure are based on the F&R Capital Monitoring Report No 4 on 24 April 2024.

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PERTH AND KINROSS COUNCIL
PRUDENTIAL INDICATORS - 6 MONTHS ENDING 31 MARCH 2024
APPENDIX IV
4 Estimate of Capital Financing Requirement
The estimate (as at April 2024) of the Capital Financing Requirement (ie new borrowing requirement for Capital Expenditure) for each year based on these plans is as follows:
Composite Programme 2023/24 2024/25 2025/26 2026/27 2027/28
Current Estimated Capital Financing Requirement 109,837,000 199,423,000 97,024,000 76,816,000 52,721,000
Original Budget Estimate (including Budget Motion) 146,850,000 164,688,000 95,082,000 49,184,000 24,991,000
Movement in Estimated Capital Financing Requirement (37,013,000) 34,735,000 1,942,000 27,632,000 27,730,000
The Original Budget Estimates are those per the 2023/24 to 2027/28 Composite Capital Budget Report on 1 March 2023
The latest estimates for Capital Expenditure are based on the F&R Capital Monitoring Report No 4 on 24 April 2024.
HRA Programme 2023/24 2024/25 2025/26 2026/27 2027/28
Current Estimated Capital Financing Requirement 17,183,000 19,703,000 17,864,000 13,629,000 17,720,000
Original Budget Estimate 16,402,000 11,940,000 16,421,000 16,524,000 16,292,000
Movement in Estimated Capital Financing Requirement 781,000 7,763,000 1,443,000 (2,895,000) 1,428,000
The Original Budget Estimates are those per the 2023/24 to 2027/28 Housing & Social Wellbeing Budget Report on 25 January 2023.
The latest estimates for Capital Expenditure are based on the F&R Capital Monitoring Report No 4 on 24 April 2024.
5 External Debt (Gross and Net)
As at Projected Projected Projected Projected
External Borrowing 31-Mar-24 31-Mar-25 31-Mar-26 31-Mar-27 31-Mar-28
Public Works Loan Board 585,000,000 782,000,000 872,000,000 967,000,000 1,042,000,000
Market Bonds (LOBOs) 43,200,000 43,200,000 43,200,000 43,200,000 43,200,000
Project Borrowing 0 0 0 0 0
Special Loans 2,414,508 2,414,508 2,414,508 2,414,508 2,414,508
Temporary Loans/Other Borrowing 2,247,591 2,000,000 1,800,000 1,500,000 1,300,000
Other Long Term Liabilities (PPP/PFI) 115,039,977 110,122,727 105,205,477 100,288,227 95,370,977
Total Gross External Debt 747,902,076 939,737,235 1,024,619,985 1,114,402,735 1,184,285,485
Short Term Investments (65,533,505) (40,000,000) (25,000,000) (25,000,000) (25,000,000)
Long Term Investments 0 0 0 0 0
Total Net External Debt 682,368,571 899,737,235 999,619,985 1,089,402,735 1,159,285,485
Note:
Operational Boundary 748,000,000 940,000,000 1,025,000,000 1,115,000,000 1,185,000,000
Authorised Limit 1,200,000,000 1,280,000,000 1,280,000,000 1,280,000,000 1,280,000,000
The Operational Boundary and Authorised Limit are based on Gross External Debt.

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PERTH AND KINROSS COUNCIL
PRUDENTIAL INDICATORS - 6 MONTHS ENDING 31 MARCH 2024
APPENDIX IV
6 Principal Sums Invested Longer Than 365 Days
The Upper Limit for sums invested for over 1 year up to 3 years is £45 million. There were no amounts invested within this period as at 31 March 2024.
7 MATURITY STRUCTURE
The lower and upper limit for the proportion of the Council's total-long term debt which matures in each of  the time bandings below, and is therefore subject to refinancing at the
prevailing market rates, is as follows:
Borrowing Maturity Structure Lower Limit Upper Limit Estimated
Under 12 months 0% 35% 2.41%
over 12 months and < 24 months 0% 35% 1.33%
over 2 years and < 5 years 0% 50% 7.73%
over 5 years and < 10 years 0% 75% 6.38%
over 10 years 10% 95% 82.14%
The maurity profile for the Council's current long-term portfolio as at 31st March 2024, measured from the start of the financial year, is as follows:
Less 1 Year 1 - 2 Years 2 - 5 Years 5 - 10 Years 10 - 20 Years 20 - 30 Years 30 - 40 Years 40 - 50 Years Over 50 Years Total
PWLB 13,000,000 5,000,000 42,500,000 20,000,000 5,000,000 0 60,500,000 439,000,000 0 585,000,000
LOBOs 0 0 0 0 0 13,000,000 25,200,000 5,000,000 0 43,200,000
Other 0 0 0 0 0 0 0 0 0 0
PPP/PFI 4,917,250 4,917,250 14,948,700 27,426,400 62,830,377 0 0 0 0 115,039,977
Total 17,917,250 9,917,250 57,448,700 47,426,400 67,830,377 13,000,000 85,700,000 444,000,000 0 743,239,977
Percentage 2.41% 1.33% 7.73% 6.38% 9.13% 1.75% 11.53% 59.74% 0.00% 100.00%