Agenda Document Pack - Finance and Resources Committee - 24/04/2024
Perth and Kinross Council · 24 April 2024
Back to Finance and Resources Committee — 24 April 2024 and its agenda
Text extracted from the council's PDF. Layout and reading order may differ from the original.
Page 1
Securing the future… • Improving services • Enhancing quality of life • Making the best use of public resources Council Building 2 High Street Perth PH1 5PH 18/04/2024 A hybrid meeting of the Finance and Resources Committee will be held in the Council Chamber on Wednesday, 24 April 2024 at 14:30. If you have any queries please contact Committee Services on (01738) 475000 or email Committee@pkc.gov.uk. THOMAS GLEN Chief Executive Those attending the meeting are requested to ensure that all notifications are silent on their device and other devices are in silent mode. Please note that the meeting will be broadcast online and recorded. The recording will be publicly available on the Council’s website following the meeting. Members: Councillor Stewart Donaldson (Convener) Councillor Grant Laing (Vice-Convener) Bailie Chris Ahern Bailie Alasdair Bailey Councillor Peter Barrett Councillor Andy Chan Councillor Dave Cuthbert Councillor Eric Drysdale Councillor John Duff Councillor David Illingworth Provost Xander McDade Councillor Tom McEwan Depute Provost Andrew Parrott Councillor John Rebbeck Councillor Caroline Shiers Councillor Colin Stewart Page 1 of 104
Page 2
Page 2 of 104
Page 3
Finance and Resources Committee Wednesday, 24 April 2024 AGENDA MEMBERS ARE REMINDED OF THEIR OBLIGATION TO DECLARE ANY FINANCIAL OR NON-FINANCIAL INTEREST WHICH THEY MAY HAVE IN ANY ITEM ON THIS AGENDA IN ACCORDANCE WITH THE COUNCILLORS’ CODE OF CONDUCT. 1 WELCOME AND APOLOGIES/SUBSTITUTES 2 DECLARATIONS OF INTEREST 3 MINUTE OF MEETING OF THE FINANCE AND RESOURCES COMMITTEE OF 31 JANUARY 2024 FOR APPROVAL (copy herewith) 5 - 8 4 OUTSTANDING BUSINESS STATEMENT (copy herewith 24/129) 9 - 10 5 REVENUE BUDGET 2023/24 - UPDATE NO. 4 Report by Strategic Lead - Finance and Business Support (copy herewith 24/130) 11 - 50 6 COMPOSITE CAPITAL BUDGET 2023-28 & HOUSING INVESTMENT PROGRAMME 2023-28 - MONITORING REPORT NO. 4 Report by Strategic Lead - Finance and Business Support (copy herewith 24/131) 51 - 86 7 TREASURY ACTIVITY AND COMPLIANCE REPORT 2023/24 - 6 MONTHS TO 31 MARCH 2024 Report by Strategic Lead - Finance and Business Support (copy herewith 24/132) 87 - 104 Page 3 of 104
Page 4
Page 4 of 104
Page 5
FINANCE AND RESOURCES COMMITTEE Minute of hybrid meeting of the Finance and Resources Committee held in the Council Chamber, 2 Hight Street, Perth on Wednesday 31 January 2024 at 2.00pm. Present: Councillors S Donaldson and G Laing, Bailie C Ahern and Bailie A Bailey, Provost X McDade, Depute Provost Parrott, and P Barrett, A Chan, D Cuthbert, E Drysdale, J Duff, D Illingworth, T McEwan, J Rebbeck, C Shiers and C Stewart. In Attendance: T Glen, Chief Executive; K Donaldson, Chief Operating Officer; C Mailer, Director (Strategy, People and Resources); S Devlin, Executive Director (Education and Children’s Services); M Butterworth, F Crofts, C France, E Ritchie, S Coyle, J Ferguson and F Robertson (Communities); G Boland and C Palmer (Education and Children’s Services); L Simpson, S MacKenzie, S Walker, P Johnstone, L Stewart, V Robertson, K Molley, A Brown and R Ramsay (all Corporate and Democratic Services); H Smout, Culture PK. Councillor S Donaldson, Convener, Presiding. 1. WELCOME AND APOLOGIES The Convener welcomed all those present to the meeting. 2. DECLARATIONS OF INTEREST There were no declarations made in terms of the Councillors’ Code of Conduct. 3. MINUTE OF PREVIOUS MEETING The minute of meeting of the Finance and Resources Committee of 22 November 2023 was submitted and approved as a correct record. 4. OUTSTANDING BUSINESS STATEMENT Resolved: The status of action in the Outstanding Business Statement (24/38) be noted and completed actions removed accordingly. IN TERMS OF STANDING ORDER 11, THE COMMITTEE AGREED TO VARY THE ORDER OF BUSINESS. 5. PROCUREMENT UPDATE There was submitted a report by the Strategic Lead – Legal and Governance (24/39) setting out (1) the Annual Procurement Report for financial year 2022/23; and (2) the planned procurement activity for future years. Resolved: (i) The publication of the Procurement Annual Report 2022/23 be approved. (ii) The record of tenders accepted during 2022/23 under the Council’s scheme of delegation be noted. (iii) The planned procurement activity, as far as known for future years, be noted. 3 Page 5 of 104
Page 6
(iv) The monies provided to third parties under the Code of Guidance for Following the Public Pound during 2022/23 be noted. 6. FLEXIBLE WORKING FRAMEWORK There was submitted a report by the Corporate Human Resources Manager (24/42) (1) seeking approval of the Framework to formalise hybrid working as a workstyle and ensure a fair and consistent approach that is focussed on operational and customer need; and (2) asking the Committee to note that the Framework, and associated operation guidance, will continue to be updated to reflect new employee rights which are at different stages of the UK parliamentary approval process. Resolved: (i) The core Flexible Working Framework, as set out in Appendix 1 to Report 24/42, which will be supported by operational guidance, be approved. (ii) It be noted that with effect from 1 April 2024 a revised Hybrid working approach will establish the requirement for a minimum level of attendance in a workplace of normally 2 days per week. THE VICE-CONVENER LED ON THE FOLLOWING ITEM. 7. REVENUE BUDGET 2023/24 – UPDATE NO. 3 There was submitted a report by Strategic Lead – Finance & Business Support (24/40) providing an update on progress with the 2023/24 General Fund Revenue Budget based upon the October 2023 ledger, updated for any subsequent known material movements; and the projected financial position of the Housing Revenue Account. Resolved: (i) The contents of the Report 24/40, be noted. (ii) The projected outturn for General Fund Services, set out in Section 5 and Appendix 1 and 2 of Report 24/40, be noted. (iii) The projected outturn for Corporate Budgets and Perth and Kinross Integration Joint Board, set out in Section 6 of Report 24/40, be noted. (iv) The funding update provided in Section 7 of Report 24/40, be noted. (v) The projected outturn for the Housing Revenue Account, which is summarised in Section 8 and Appendix 4 of Report 24/40, be noted. (vi) The adjustments to the 2023/24 Management Revenue Budget, detailed in Sections 8, 9, 10 & 11 and Appendices 1, 2, 4, 5, 6 and 7 of Report 24/40, be approved. (vii) The financial risks, set out in Section 12 and Appendix 8 of Report 24/40, be noted. THE CONVENER LED ON THE FOLLOWING ITEM. 8. COMPOSITE CAPITAL BUDGET 2023/28 & HOUSING INVESTMENT PROGRAMME 2023/28 – MONITORING REPORT No.3 There was submitted a report by Head of Finance (24/41) (1) providing a summary position to date for the 5-year Composite Capital Budget and the 5-year Page 6 of 104
Page 7
Housing Investment Programme for 2023/24 to 2027/28 and; (2) seeking approval for adjustments to the programmes. Resolved: (i) The contents of Report 24/41, be noted. (ii) The proposed adjustments to the five-year Composite Capital Budget 2023/24 to 2027/28, as set out in Sections 5 and 6 of Report 24/41 and summarised in Appendices I and II to Report 24/41, be approved. (iii) The proposed adjustments to the Housing Investment Programme Budget 2023/24 to 2027/28, as set out in Section 7 of Report 24/41 and summarised in Appendix III to Report 24/41, be approved. Page 7 of 104
Page 8
Page 8 of 104
Page 9
FINANCE AND RESOURCES COMMITTEE OUTSTANDING BUSINESS STATEMENT (OBS) (Report No. 24/129) Please note that this statement sets out outstanding decisions of this committee along with an update and estimated completion date. Actions which are overdue are shaded for ease of reference. Where an update reflects that an action is complete then the Committee’s agreement will be sought to its removal from the OBS. No Minute Reference Subject Title Outstanding Action Update Lead Officer/ Service Action Due Action Expected 21. 22 Nov 23 Revenue Budget 2023/24 – Update No. 2 To increase scrutiny and assurance, representatives from Tayside Contracts be invited to future meetings of Perth and Kinross Council’s Scrutiny and Performance Committee. An Elected Member Briefing Session on the structure of Tayside Contracts/Minute of Agreement/Governance Arrangements has been arranged for members on 23 April 2024. Representatives from Tayside Contracts have been invited to attend the Scrutiny and Performance Committee on 24 April 2024. COMPLETED Legal and Governance 24 Apr 24 24 Apr 24 22. 23 Mar 23 Executive Sub- Committee Revenue Budget 2022/23 – Tayside Contracts Following the Executive Sub-Committee on 23 March 2023, the Convener was requested to write to Tayside Contracts suggesting that they set up a The Convener has not received a response from Tayside Contracts. NOT COMPLETED Thomas Glen TBC TBC 4 Page 9 of 104
Page 10
No Minute Reference Subject Title Outstanding Action Update Lead Officer/ Service Action Due Action Expected Performance/Scrutiny Sub-Committee to enable more regular in-depth monitoring of performance. The Convener wrote a letter to Tayside Contracts. 23. 31 Jan 24 Procurement Update Further information regarding the funding received by Scottish Police Authority contained within the Following the Public Pound report be shared with members. Email response was issued to members. COMPLETED Legal and Governance 24 April 2024 24 April 2024 24. 31 Jan 24 Procurement Update To share a link to the Contracts Register on the Public Contracts Scotland website. Email response was issued to members. COMPLETED Legal and Governance 24 April 2024 24 April 2024 Page 10 of 104
Page 11
PERTH & KINROSS COUNCIL FINANCE & RESOURCES COMMITTEE 24 APRIL 2024 REVENUE BUDGET 2023/24 – UPDATE NO. 4 Contact Officer: Scott Walker, Strategic Lead – Finance & Business Support (Report No. 24/130) 1. PURPOSE 1.1 This report provides an update on progress with the 2023/24 General Fund Revenue Budget based upon the January 2024 ledger, updated for any subsequent known material movements, and the projected financial position of the Housing Revenue Account. 1.2 The total net projected under spend on the 2023/24 General Fund Management Budget is £1.373 million (see Appendix 1). 1.3 The report also seeks approval for several adjustments to the 2024/25 Revenue Budget approved by Council on 28 February 2024. 2. RECOMMENDATIONS The Committee is requested to: A. note the contents of the report. B. note the projected outturn for General Fund Services set out in Section 5 and Appendix 1 and 2. C. note the projected outturn for Corporate Budgets and Perth & Kinross Integration Joint Board set out in Section 6. D. note the funding update provided in Section 7. E. note the projected outturn for the Housing Revenue Account, which is summarised in Section 8 and Appendix 4. F. approve the adjustments to the 2023/24 Management Revenue Budget detailed in Sections 8, 9, 10 & 11 and Appendices 1, 2, 4, 5, 6 & 7. G. note the financial risks set out in Section 12 and Appendix 8. H. approve the adjustments to the 2024/25 Management Revenue Budget detailed in Section 13 and Appendix 9. 5 Page 11 of 104
Page 12
3. STRUCTURE Section 4 Background Section 5 Revenue Monitoring – Service Budgets Section 6 Revenue Monitoring – Corporate Budgets Section 7 Revenue Monitoring – Funding Section 8 Revenue Monitoring – Other Updates Section 9 2023/24 Additional Funding Section 10 2023/24 Virements Section 11 2023/24 Movements in Reserves Section 12 Financial Risks Section 13 Adjustments to 2024/25 Revenue Budget Section 14 Conclusions 4. BACKGROUND 4.1 This report updates the Committee on progress with the 2023/24 Revenue Budget. Appendix 1 to this report summarises the current projected year end (outturn) position for each Service based upon the January 2024 ledger, updated for any subsequent known material movements. 4.2 The budget total reflected in Column 1 of Appendix 1 to this report is that approved by the Council in setting the 2023/24 Final Revenue Budget on 1 March 2023 (Report No. 23/72 refers). In addition, adjustments approved by the Council on 4 October 2023 (Report No. 26/268 refers), the Finance & Resources Committee on 26 April, 13 September and 22 November 2023 and 31 January 2024 (Report Nos. 23/120, 23/242, 23/315 and 24/40 refer) and Executive Sub-Committee of the Finance & Resources Committee on 24 July 2023 (Report No. 23/219 refers) are reflected in Appendix 1 (Column 2). 5. REVENUE MONITORING – SERVICE BUDGETS 5.1 The Service Budget projections included within this section and Appendix 1 through to 8 have been prepared based on the Council’s previous structure. Going forward, future reports will reflect the new structure. 5.2 The total net projected under spend on Service budgets, which is summarised in Section 1 of Appendix 1 to this report, is £2.543 million which represents 0.7% of total net Service expenditure. 5.3 Details of variances against individual Service budgets are shown in Appendix 2 to this report with the most significant variances summarised below. 5.4 The management of Service over and under spends are considered throughout the financial year and may also form part of the Revenue Budget strategy for future years. 5.5 All Council Services are over achieving on approved levels of slippage. Whilst there is a financial impact of this which is reflected in the projected outturns included in this report, there may be unintended consequences in Page 12 of 104
Page 13
terms of performance, delivery of strategic objectives and impact on the remaining workforce. 5.6 There also remains a risk that the Council continues to experience increases in costs over the short to medium term that are higher than budgeted inflation levels. This is already being seen in the cost of the materials required by property and housing maintenance teams. Going forward, this may continue to have an impact on projected outturns and future years’ budgets. Education & Children’s Services 5.7 The projected outturn for Education & Children’s Services excluding Devolved School Management (DSM) and the Pupil Equity Fund (PEF) is currently anticipated to be £2.761 million or 1.1% less than budget – a movement of £1.725 million on the position last reported to Committee. The individual elements contributing to this position are summarised in the following table and narrative. Function Projected Outturn Movement £’m % £’m Education Services Under spend (1.008) (1.7) (0.604) Children, Young People & Families Under spend (0.337) (1.4) (0.236) Business & Resource Services Under spend (0.205) (2.8) (0.130) Catering Services Under spend (1.211) (16.8) (0.755) TOTAL Under spend (2.761) (1.1) (1.725) 5.8 Within non devolved Education Services there is an increase in the net projected under spend of £604,000. This is primarily made up of movements in projected staff costs due to additional slippage (£565,000). Other projected net under spends (£39,000) include the impact of non-domestic rates revaluations. 5.9 In Services for Children, Young People & Families there is an increase in the projected under spend of £236,000. This is made up of increases in projected under spends on staff costs (£146,000) and non-staff related budgets (£90,000). 5.10 In Business & Resource Services there is an increase in the projected under spend of £130,000 due, primarily to updated staff cost and income projections. 5.11 In Catering Services, there is an increase in the net projected under spend of £755,000. This updated projection is based upon the latest information provided by Tayside Contracts and on further increases in school meal uptake. 5.12 The updated projected under spend on Catering Services is based on the increased budget, which includes the additional contribution from Reserves of £2.1 million approved by the Finance & Resources Committee on 22 November 2023 (Report No. 23/315 refers). Page 13 of 104
Page 14
5.13 The Devolved School Management Scheme (DSM) is currently projected to under spend by £349,000 due to staff slippage and additional income, which represents 0.3% of the overall DSM budget. However, individual schools are experiencing challenges in delivering approved staff slippage targets. The budgets for the Devolved School Management scheme are allocated by financial year (April – March), whereas expenditure is incurred by academic year (August – June). 5.14 At this stage of the academic year, expenditure met from the Pupil Equity Fund (PEF) is projected to be £100,000 less than the allocation from the Scottish Government of £1.874 million. Schools are being instructed to use this year’s PEF by 31 March 2024. It is anticipated that the projected under spend on teacher and support costs of £100,000 will be carried forward to 2024/25 to meet commitments. The budgets for the Pupil Equity Fund scheme are allocated by financial year, whereas expenditure is incurred by academic year. Communities 5.15 The projected outturn for Communities is currently anticipated to be £373,000 or 0.5% more than budget - which represents a movement of £250,000 on the position last reported to Committee. This position is summarised in the following table and narrative. Function Projected Outturn Movement £’m % £’m Environmental & Consumer Services Over spend 1.143 3.0 0.205 Culture & Communities Over spend 0.115 0.9 - Planning & Development Over spend 0.170 2.6 0.125 Housing Over spend 0.050 0.6 0.005 Business & Resources Under spend (1.105) (18.3) (0.585) TOTAL Over spend 0.373 0.5 0.250 5.16 In Environmental & Consumer Services there is an increase in the projected net over spend of £205,000. This is due to projected over spends in Roads on winter maintenance and flooding and Operations on additional hires and supplies & services, partially offset by additional income. 5.17 The projected outturn for Environmental & Consumer Services now includes updated information on the financial consequences of the severe weather of October 2023. The gross cost has increased £2.213 million, and it is anticipated that £1.415 million will be recovered from the Scottish Government through the Bellwin Scheme with the balance of £798,000 being funded from unearmarked Reserves. 5.18 In Planning & Development there is a net increase in the projected over spend of £125,000 due, in the main, to updated projections in relation to Perth Harbour and events income. 5.19 Within Housing there is a net increase in the projected over spend of £5,000. Page 14 of 104
Page 15
5.20 Within Business & Resources there is a net increase in the projected under spend of £585,000. This is a combination of additional staff slippage and income partially offset by an increase in non-staff cost budgets. Corporate & Democratic Services 5.21 The projected outturn for Corporate & Democratic Services is currently anticipated to be £228,000 or 0.6% less than budget – a movement of £288,000 from the position last reported to Committee. The main movements are summarised in the following table and narrative. Function Projected Outturn Movement £’000 % £’000 Legal & Governance Services Under spend (71) (1.6) 47 Finance Over spend 118 8.9 41 Human Resources Under spend (177) (5.3) (109) IT & Revenues and Benefits Over spend 260 2.7 91 Property Under spend (358) (1.7) (358) TOTAL Under spend (228) (0.6) (288) 5.22 Within Legal & Governance, Finance and Human Resources and IT & Revenues and Benefits there has been a reduction in the net under spend of £70,000. This is made up of increase demand for community / crisis grants partially offset by a combination of updated staff cost projections and income assumptions as well as a reduction in non-staff related expenditure across the Service. 5.23 In Property there has been an increase in the net projected under spend of £358,000. This is a combination of additional fee income and reduced expenditure on maintenance and energy. Chief Executive Service 5.24 The projected outturn for the Chief Executive’s Service is currently anticipated to be £73,000 more than budget. These projections include one-off costs of change associated with the Council’s new leadership structure. 6. REVENUE MONITORING – CORPORATE BUDGETS 6.1 Included within Section 2 of Appendix 1 is an update on the Council’s Corporate budgets. More information on variances against individual budget headings are set out below. Perth & Kinross Integration Joint Board 6.2 In setting the 2023/24 final Revenue Budget, Perth & Kinross Integration Joint Board approved the use of Reserves to deliver a balanced position. However, the financial position of the IJB remains challenging due to health and social care continuing to face recruitment challenges, increasing client needs, uncertainty over funding and rising costs particularly within prescribing. Page 15 of 104
Page 16
6.3 On 11 March 2024, the Audit & Performance Committee of the Perth & Kinross Integration Joint Board received a financial update for the Health & Social Care Partnership. At that time there was a projected over spend of £660,000 which is set out in Appendix 3. Within the overall projected over spend, £447,000 relates to social care. 6.4 In relation to non-devolved functions there is currently a projected under spend of £330,000 which is reflected in Appendix 1. Council Tax Reduction Scheme 6.5 The application of the Council Tax Reduction Scheme is a statutory function for the Council. The promotion and encouragement of take up is a key responsibility for the Council, particularly when households are facing significant pressures on the cost of living. 6.6 The level of expenditure incurred by the Council is dependent upon two main drivers, firstly, the average number of weekly caseload and, secondly, the average value of weekly entitlements. The following graph sets out both variables over the current and previous six financial years. The graph shows a clear increase in the average weekly entitlement whereas the average caseload has been more volatile but has returned to higher levels. 6.7 In the current financial year, the Council is supporting approximately 8,500 households across Perth and Kinross with the Council Tax Reduction Scheme with an average award of £16.65 per week. This results in a projected over spend on the Council Tax Reduction Scheme of approximately £1.150 million which is reflected in Appendix 1. Page 16 of 104
Page 17
7. REVENUE MONITORING – FUNDING 7.1 Further information on the Council’s funding is set out within Section 3 of Appendix 1. More information on variances against individual budget headings are set out below. Council Tax Income 7.2 The amount of income the Council will generate from Council Tax is dependent on two main factors, firstly collection levels and secondly, the number of Band D properties on the Valuation Roll. 7.3 Monitoring of Council Tax collection levels is carried out monthly. The following graph sets out collection performance to 31 March 2024 together with prior year comparative figures for the previous five financial years. 7.4 Between 2018/19 and 2022/23, the average collection figure to 31 March was 97.05%. The actual collection figure to 31 March 2024 was 97.53% which is an improvement of 0.48% compared to the five-year average, but a 0.42% reduction on the comparable position in 2023. Page 17 of 104
Page 18
7.5 Secondly, in setting the Council’s Revenue Budget, assumptions are made on increases in the number of Band D equivalent properties. The graph set out below suggests that actual growth levels are in line with budget assumptions. 7.6 Using the information on both in year and previous years collection rates, along with the growth in the number of band D equivalent properties, the level of Council Tax income is now projected to be £200,000 more than budget and this is reflected in Appendix 1. Non-Domestic Rates 7.7 The actual collection rate to 31 March 2024 was 96.46%, compared to 97.91% for the same period in 2022/23. Page 18 of 104
Page 19
8. REVENUE MONITORING – OTHER UPDATES Impact on Arm’s Length External Organisations (ALEOs) 8.1 The Council continues to work closely with its three Arm’s Length External Organisations (ALEOs) – Live Active Leisure (LAL), Perth Theatre & Concert Hall (PTCH) and Culture Perth & Kinross (CPK) who make an important contribution to the Corporate Plan through the current Culture, Physical Activity and Sport Strategies approved by Council in May 2023. 8.2 To date, no significant financial issues have been identified relating to Culture Perth and Kinross or Perth Theatre & Concert Hall. 8.3 Live Active Leisure finished 2022/23 with a revenue deficit of £203,000. For 2023/24, LAL initially budgeted for a deficit of £630,000. The latest projections, which have been considered by their own, Finance and Governance Committee indicate a deficit of approximately £334,000. For 2023/24, LAL are funding the budgeted deficit from their Reserves. 8.4 LAL’s projected deficits in 2021/22 and 2022/23 did not materialise, which is positive. However, Council officers will work with LAL throughout the year on best/worst/mid-range projections to ensure that the Committee has more certainty about the likely year end position for 2023/24. This will be particularly important to support work on the ALEO budget positions and SLA awards for 2024/25 given the continuing financial challenges which face the Council. Housing Revenue Account 8.5 The Housing Revenue Account is currently projected to break even in the current financial year. The main elements are summarised below and set out in Appendix 4. 8.6 Across the Housing Revenue Account there is an increase in the net projected under spend of £170,000. The main reasons for this movement are updated bad debt provisions and staff cost projections, partially offset by reduced income. 8.7 As a result of the variances identified above Capital Financed from Current Revenue will reduce by £280,000. 9. 2023/24 ADDITIONAL FUNDING 9.1 Since the 2023/24 Revenue Budget was updated on 31 January 2024 (Report No. 24/40 refers), the Council has been advised of additional funding for the current financial year from several sources. To ensure that the 2023/24 Management Budget continues to reflect the operational requirements of the Council, several adjustments are required, which are summarised below and included in Appendix 1 and Appendix 5. Page 19 of 104
Page 20
Scottish Government – Revenue Support Grant: • Support for School Staff Training – £23,000 (Education & Children’s Services) (ECS) • Summer programmes - £2,000 (ECS) • Storm Babet - £88,000 (Communities) • Pay Uplifts - £1.411 million (Reserves) • Self-Directed Support Transformational Funding - £6,000 (Health & Social Care) 9.2 The Scottish Government has advised that the increase in funding identified above of £1.530 million will be made through a redetermination of the Council’s Revenue Support Grant. It is therefore necessary to adjust budgets for Education & Children’s Services, Communities, Health & Social Care and Revenue Support Grant. 9.3 ACTION: The Committee is asked to approve the adjustments set out at paragraph 9.1 which is reflected in Appendix 1 (Column 3) to this report. Other Funding 9.4 Other funding amounting to £1.071 million will be paid outside the Revenue Support Grant mechanism as Other Grant income and is, therefore, cost neutral in terms of the budget summary. Details of this funding is set out in Appendix 5. 9.5 ACTION: The Committee is asked to note the receipt of £1.071 million of additional resources, with this funding being reflected within Education & Children’s Services and Communities as additional grant income. The current projected outturn assumes that all these additional resources will be fully expended in 2023/24 or carried forward under the terms of the grant award. 10. 2023/24 VIREMENTS Contribution to/from Capital Fund 10.1 In line with the strategy for managing the Council’s Capital Programme over the medium term, it is recommended that the eventual over or under spend on Capital Financing Costs and Interest on Revenue Balances be transferred from or to the Capital Fund. 10.2 The latest monitoring indicates a projected reduction in capital financing costs (loan charges) of £545,000 based on capital expenditure and the latest treasury management activity and a reduction in income of £534,000 from interest on revenue balances due to updated interest rate projections. This will result in a net increase in the Contribution to the Capital Fund of £11,000 in the current financial year. 10.3 ACTION: The Committee is requested to approve the virement of £545,000 from the Capital Financing Costs (Loan Charges) Budget and £534,000 from Interest on Revenue Balances with a corresponding increase in the projected Page 20 of 104
Page 21
Contribution to the Capital Fund. These adjustments have been reflected in Appendix 1 (Column 4) to this report. 10.4 At 31 March 2023, the audited 2022/23 Annual Accounts included a Capital Fund balance of £26.343 million. Following the Council approval of a 1% increase in Council Tax to be applied to the Loan Charges budget each year from 2025/26, with the existing approved Capital Budget, the Capital Fund is currently projected to peak in 2050/51, before gradually reducing until fully utilised in 2062/63. 11. 2023/24 MOVEMENTS IN RESERVES 11.1 Included at Appendix 6 is an update on the Council’s General Fund Reserves. The appendix includes the following: • Earmarked and unearmarked Reserves at 31 March 2023 (per audited Annual Accounts). • previously approved contributions to and from earmarked Reserves in 2023/24, 2024/25 and 2025/26. • The impact of proposals within this report on earmarked Reserves. • Known commitments against earmarked Reserves. • The impact of the latest revenue monitoring on the level of unearmarked Reserves. 11.2 The earmarked Reserves are brigaded under three headings as follows: i. Balances held under statute / regulation – these earmarked Reserves are prescribed under legislation and the Council has limited discretion in how they are applied. ii. Balances held for specific (previously approved) purposes – the purpose of these earmarked Reserves has been previously approved by Council in either the Reserves Strategy or Annual Accounts iii. Balances held for other purposes – the creation of these earmarked Reserves has been approved by Council, but not specific proposals. 11.3 Proposals involving earmarked Reserves under i. and ii. above will be advised to Committee in summary as Council either has limited discretion or previously approved their application. Proposals to apply earmarked Reserves under iii. above will include more detail for elected member consideration. Balances Held for Specific (Previously Approved) Purposes 11.4 These earmarked Reserves have previously been approved by elected members in their consideration of the Reserves Strategy or Annual Accounts. The proposals listed below transfer funding to earmarked Reserves to be applied in future years. • Climate Change - £110,000 Page 21 of 104
Page 22
• Workforce Management (including Transformation) - £111,000 • School Estate - £805,000 (Perth High School, Learning Estate Investment Programme & Bertha Park High School) 11.5 ACTION: the Committee is asked to approve the transfer of £1.026 million to the earmarked Reserves set out above. These adjustments are reflected in Appendix 1 (column 5) to the report. 11.6 Approval is also sought to draw down £236,000 for the Culture earmarked Reserve in respect of the Stone of Destiny and opening exhibition costs. 11.7 ACTION: the Committee is asked to approve the application of £236,000 from the Culture earmarked Reserve to fund the upfront costs relating to the opening of the Perth Museum. The adjustment for 2023/24 is reflected in Appendix 1. 11.8 In addition, in setting the 2023/24 Revenue Budget in March 2023 the Council Approved Expenditure to fund several specific initiatives. For a variety of reasons including consultation and capacity issues, there has been slippage in the delivery of a few of these projects that may result in the expenditure not being incurred in the current financial year. Projects totalling £524,000 are set out at Appendix 7. 11.9 Should the Committee confirm that that the projects remain a priority for the Council then the balances set out in Appendix 7 will be transferred to an earmarked Reserve to ensure that the funding is in place to ensure delivery. The final outturn for individual projects may change before the end of the financial year. Therefore, by agreeing the projects within Appendix 7, the Committee is confirming that the initiative remains a priority and that the final under spend will be earmarked within Reserves. 11.10 Should any of the projects no longer be a priority, the projected under spend would be available to support the financial management of the Council in both current and future financial years. 11.11 ACTION: The Committee is asked to confirm that the projects listed in Appendix 7 remain a priority and that the final under spends, currently projected at £524,000 are transferred to an earmarked Reserve to ensure delivery. These adjustments are reflected in Appendix 1 (column 5) to the report. 11.12 Furthermore, under the Framework for Managing Workforce Change, the authority to approve voluntary severance requests sits with the Executive Leadership Team, except for requests from Chief Officers. With that in mind, approval is sought to draw down £217,000 from the Transformation and Workforce Management earmarked Reserve to fund voluntary severance requests. These voluntary severance requests will support the delivery of savings previously approved by Council and payback in less than two years. Page 22 of 104
Page 23
11.13 ACTION: The Committee is asked to approve the transfer of £217,000 from the Transformation & Earmarked Reserve with adjustments reflected in Appendix 1 (Column 5) to the report. 11.14 Subject to approval of the proposals included within this report set out above, the level of unearmarked Reserves will increase to £17.858 million or 4%. Insurance Fund 11.15 In setting the 2025/26 Provisional Revenue Budget, Council has already acknowledged the pressure on the Insurance Fund with a recurring contribution of £800,000 from that year. 11.16 However, based on the latest information, the level of unearmarked Reserves is now projected to be more favourable than previously advised. With this in mind, and subject to this position crystallising in the 2023/24 Annual Accounts, approval is sought for a non-recurring contribution of £1 million to the Insurance Fund to improve the financial position of the Fund. 11.17 ACTION: The Committee is asked to approve a contribution of £1 million to the Insurance Fund in 2023/24 with this adjustment being reflected in Appendix 1 (Column 5) to the report. 11.18 Subject to approval of all the proposals included within this report and recognising the known commitments, the level of earmarked Reserves will reduce to £24.133 million and the level of unearmarked Reserves will be £16.858 million or 3.7%. 11.19 The level of unearmarked Reserves at 31 March 2024 may increase on completion of the unaudited 2023/24 Annual Accounts are completed. If this does come to pass, it is proposed that the amount in excess of 4% is transferred to the earmarked Reserve for Transformation & Workforce Management. The Finance & Resources Committee on 18 September 2024 will receive an update on his proposal. 12. FINANCIAL RISKS 12.1 In preparing the Council's 2023/24 Revenue Monitoring, officers have considered the key strategic, operational and financial risks facing the Council over this period. Whilst the risks may be managed in the current financial year, there is the potential for there to be an impact in the future. 12.2 To alleviate the impact these risks may have if they occur, a number of general risk mitigation factors are utilised by the Council which include detailed budget monitoring carried out by Services and having general fund balances available to meet unforeseen expenditure. 12.3 Financial risks previously identified are summarised in Appendix 8. Page 23 of 104
Page 24
13. ADJUSTMENTS TO 2024/25 REVENUE BUDGET 2024/25 Additional Funding 13.1 Since the 2024/25 Revenue Budget was approved on 28 February 2024 (Report No. 24/63 refers), the Council has been advised of additional funding in 2024/25 from the Scottish Government as follows. To ensure that the 2024/25 Management Budgets continue to reflect the operational requirements of the Council, several adjustments are required, which are summarised below and included in Appendix 9. Revenue Support Grant • Living Wage: £7.014 million (Health & Social Care - £6.764 million, Housing & Communities - £250,000) • Discretionary Housing Payment: £958,000 (Customer & Digital) • Scottish Disability Allowance - £117,000 (Finance & Business Support) • Whole Family Wellbeing Fund - £5,000 (Children, Families & Justice) Non-Domestic Rates • Increase in allocation - £203,000. 13.2 The Scottish Government has advised that the adjustment in funding identified at paragraph 13.1 will be made through a redetermination of the Council’s Revenue Support Grant. It is therefore necessary to adjust the budgets for Housing & Communities, Customer & Digital, Finance & Business Support, Health & Social Care, Revenue Support Grant and Non-Domestic Rates. 13.3 ACTION: The Committee is asked to approve the adjustments set out in paragraphs 13.1 and 13.2. These adjustments are reflected in Appendix 9 (Column 3) to this report. 13.4 The Scottish Government has also withheld distribution of £145.5 million nationally for teachers, which the Council has not adjusted for and amounts to £3.625 million. The Council’s 2024/25 Revenue Budget has been constructed on the basis that this funding is forthcoming during the financial year. This funding will no longer be paid through the Revenue Support Grant mechanism and as such the an other grant income budget has been created in Economy, Place and Learning. 2024/25 Service Virements 13.5 To ensure that the 2024/25 Management Revenue Budget continues to reflect current Service needs and operational requirements the following virements between budgets are required. • Capital Grant to Communities (£139,000) to reflect a rephasing of expenditure on Tactran capital projects – this is brought forward from 2023/24. Page 24 of 104
Page 25
2024/25 Movements in Reserves Transformation Projects 13.6 Due to the rephasing of expenditure, approval is sought to draw down funding to take forward the following approved projects in 2024/25: • Anti-Poverty - £74,000 to Strategic Planning, People & Performance • Transformation - £702,000 to Strategic Planning, People & Performance • Procurement & Commissioning - £142,000 to Legal & Governance • Finance - £214,000 to Finance & Business Support 13.7 ACTION: The Committee is asked to approve the transfers from the Transformation and Workforce Management earmarked Reserve listed in 13.6 above. These adjustments are reflected in Appendix 9 (Column 5) to this report. Council Approved Expenditure 13.8 Approval is sought to apply funding to the Council approved projects identified at paragraph 11.9 and Appendix 7 to 2024/25 to ensure that they are delivered. 13.9 ACTION: The Committee is asked to approve the adjustments set out at paragraph 11.9 above and Appendix 7 in 2024/25. These adjustments are reflected in Appendix 9 (Column 5) to this report. Climate Change 13.10 Approval is sought to apply the 2023/24 projected under spend of £110,000 on Climate Change identified in paragraph 10.22 to 2024/25. 13.11 ACTION: The Committee is asked to approve the transfer of £110,000 from the Climate Change earmarked Reserve to Environment & Infrastructure. This adjustment is reflected in Appendix 9 (Column 5) to the report. Modern Apprentices 13.12 Approval is sought to apply £340,000 to support the modern apprentice programme. ACTION: The Committee is asked to approve the transfer of £340,000 from the Modern Apprentices earmarked Reserve to Strategic Planning, People and Resources. This adjustment is reflected in Appendix 9 (Column 5) to the report. Working Smarter 3.13 Approval is sought to apply £115,000 on the working smarter project previously reported as requiring to be carried forward. Page 25 of 104
Page 26
ACTION: The Committee is asked to approve the transfer of £115,000 from the working smarter earmarked Reserve to Property Services. This adjustment is reflected in Appendix 9 (Column 5) to the report. 14. CONCLUSION 14.1 Based on the October January 2024 ledger, a projected under spend of £1.428 million has been identified in the current financial year. 14.2 This level of projected over spend and contributions from unearmarked Reserves included within this and previous reports will result in a reduction in the level of unearmarked Reserves to £16.858 million or 3.7%. 14.3 The financial position of the Council and its partners and ALEOs remains challenging and regular updates will be provided to the Council and the Finance & Resources Committee as the position develops. APPROVED Name Designation Date Clare Mailer Director – Strategy, People & Resources 28 March 2024 Page 26 of 104
Page 27
ANNEX 1. IMPLICATIONS, ASSESSMENTS, CONSULTATION AND COMMUNICATION Strategic Implications Yes / None Community Plan / Single Outcome Agreement None Corporate Plan Yes Resource Implications Financial Yes Workforce Yes Asset Management (land, property, IST) Yes Assessments Equality Impact Assessment Yes Strategic Environmental Assessment Yes Sustainability (community, economic, environmental) Yes Legal and Governance None Risk None Consultation Internal Yes External None Communication Communications Plan None 1. Strategic Implications Corporate Plan 1.1 The Council’s Corporate Plan 2022 – 2027 lays out seven outcome focussed strategic objectives which provide clear strategic direction, inform decisions at a corporate and service level and shape resources allocation. They are as follows: • Tackling poverty • Tackling climate change and supporting sustainable places • Growing a sustainable and inclusive local economy • Enabling our children and young people to achieve their full potential • Protecting and caring for our most vulnerable people • Supporting and promoting physical and mental wellbeing • Placing communities at the heart of how we work 1.2 This report relates to all these objectives. 2. Resource Implications Financial 2.1 There are no direct financial implications arising from this report other than those reported within the body of the main report. Page 27 of 104
Page 28
Workforce 2.2 There are no direct workforce implications arising from this report other than those reported within the body of the main report. Asset Management (land, property, IT) 2.3 There are no direct asset management implications arising from this report other than those reported within the body of the main report. 3. Assessments Equality Impact Assessment 3.1 Under the Equality Act 2010, the Council is required to eliminate discrimination, advance equality of opportunity, and foster good relations between equality groups. Carrying out Equality Impact Assessments for plans and policies allows the Council to demonstrate that it is meeting these duties. 3.2 The information contained within this report has been considered under the Corporate Equalities Impact Assessment process (EqIA) and has been assessed as not relevant for the purposes of EqIA. Strategic Environmental Assessment 3.3 The Environmental Assessment (Scotland) Act 2005 places a duty on the Council to identify and assess the environmental consequences of its proposals. 3.4 The information contained within this report has been considered under the Act. However, no action is required as the Act does not apply to the matters presented in this report. Sustainability 3.5 Under the provisions of the Local Government in Scotland Act 2003 the Council must discharge its duties in a way which contributes to the achievement of sustainable development. In terms of the Climate Change Act, the Council has a general duty to demonstrate its commitment to sustainability and the community, environmental and economic impacts of its actions. 3.6 The information contained within this report has been considered under the Act. However, no action is required as the Act does not apply to the matters presented in this report. 4. Consultation Internal 4.1 The Executive Leadership Team have been consulted in the preparation of this report. Page 28 of 104
Page 29
2. BACKGROUND PAPERS 2.1 No background papers, as defined by Section 50D of the Local Government (Scotland) Act 1973 (other than any containing confidential or exempt information) were relied on to any material extent in preparing the above report. 3. APPENDICES Appendix 1 – 2023/24 Management Budget Appendix 2 – General Fund 2023/24 Projected Outturn – Service Analysis Appendix 3 – Health & Social Care Partnership Appendix 4 – Housing Revenue Account 2023/24 Projected Outturn Appendix 5 – Other Fundings Appendix 6 – General Fund Balances Appendix 7 – Council Approved Expenditure Appendix 8 – Financial Risks Appendix 9 – 2024/25 Management Budget Page 29 of 104
Page 30
Page 30 of 104
Page 31
(1) (2) (3) (4) (5) (6) (7) (8) (9) 2023/24 Previously Movements Virements Movements 2023/24 Projected Variance Variance Council Approved in in Revised Outturn to to Approved Adjustments Funding Reserves Mgt Revised Revised Budget (Net) Budget Mgt Mgt Budget Budget £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 % SECTION 1 Service Budgets Education & Children's Services 230,985 10,173 25 (644) 240,539 237,778 (2,761) (1.1%) Communities 70,439 11,268 88 (144) (328) 81,323 81,696 373 0.5% Corporate & Democratic Services 39,596 1,669 5 (292) 40,978 40,750 (228) (0.6%) Chief Executive Service 3,712 931 167 4,810 4,883 73 1.5% Sub - Total: Service Budgets 344,732 24,041 113 (139) (1,097) 367,650 365,107 (2,543) (0.7%) SECTION 2 Corporate Budgets Health & Social Care 83,958 4,011 6 87,975 87,645 (330) (0%) Contribution to Valuation Joint Board 1,309 1,309 1,309 0 0.0% Capital Financing Costs 15,137 (294) (545) 14,298 14,298 0 0.0% Interest on Revenue Balances (5,054) (761) 534 (5,281) (5,281) 0 0.0% Net Contribution to/(from) Capital Fund 3,099 1,055 11 4,165 4,165 0 0.0% Contribution to/(from) Insurance Fund 200 1,000 1,200 1,200 0 0.0% Trading Operations Surplus (550) (550) 0 550 100.0% Support Service External Income (2,153) (2,153) (2,153) 0 0.0% Tayside Pension Fund 1,725 (70) 1,655 1,655 0 0.0% Apprenticeship Levy 818 138 956 956 0 0.0% Council Tax Reduction Scheme 6,200 6,200 7,350 1,150 18.5% Discretionary Relief 1,104 1,104 1,104 0 0.0% Net Expenditure (General Fund) 450,525 28,120 119 (139) (97) 478,528 477,355 (1,173) -0.2% SECTION 3 Funding Revenue Support Grant (239,627) (13,830) (1,530) (254,987) (254,987) 0 0.0% Ring Fenced Grant (17,725) 0 (17,725) (17,725) 0 0.0% Non Domestic Rate Income (60,754) (60,754) (60,754) 0 0.0% Council Tax Income (103,914) (103,914) (104,114) (200) (0%) Capital Grant (1,600) (30) 139 (1,491) (1,491) 0 0.0% Total Financing (423,620) (13,860) (1,530) 139 0 (438,871) (439,071) (200) (0%) Financed from/(returned to) Reserves 26,905 14,260 (1,411) 0 (97) 39,657 38,284 (1,373) PERTH & KINROSS COUNCIL GENERAL FUND 2023/24 REVENUE BUDGET - SUMMARY APPENDIX 1 5 Page 31 of 104
Page 32
Page 32 of 104
Page 33
APPENDIX 2 PERTH & KINROSS COUNCIL - GENERAL FUND 2023/24 PROJECTED OUTTURN - SERVICE ANALYSIS (Based on Expenditure to 31 January 2024) Variance Variance £'000 £'000 Education & Children's Services Total (2,761) 0 DEVOLVED SCHOOL MANAGEMENT SCHEME (DSM) There are 66 primary schools, 7 secondary schools, 4 all through schools, 46 nurseries and early learning centres and 1 special school within the Council's DSM scheme. Each school has an individual budget, primarily based on pupil numbers. Headteachers are responsible for the annual budgets devolved to them in April each year. The total DSM budget for 2023/24 is £132.051 million including carry forwards. Within the scheme there is a facility allowing for DSM balances, whether surplus or deficit, to be brought forward from the previous financial year. In addition to the resources devolved, balances may also be available to headteachers of schools that have a carry forward. In 2022/23, £722,000 of DSM balances were brought forward. (472) Projected under spend on staff costs due to delays in filling vacancies and release of remaining supply budgets. 162 Projected over spend on supplies and services. (39) Projected recovery of income from Scottish Qualifications Authority 349 There is currently a projected net under spend of £349,000 based on current spending plans across all schools for the current academic year that runs to June 2024. The maximum carry forward under the DSM scheme is 2.5%, the current projection is 0.3%. The delivery of budgeted slippage targets remains challenging within individual schools. Pupil Equity Fund 100 The majority of schools within Perth & Kinross Council have been allocated a share of £1.874 million of Pupil Equity Funding from the Scottish Government as a ring fenced grant. Schools are being instructed to use this year’s PEF Grant by 31 March 2024 as per the revised Scottish Government guidance. At this time £100,000 is projected to be carried forward into 2024/25 for teacher and support staff costs to the end of the current academic year. (100) Projected carry forward of Pupil Equity Funding. NON DEVOLVED Education Services Nursery Sector (980) Additional slippage due to turnover of staff, appointments at the lower end of pay scales and impact of strikes that took place earlier this financial year. (34) Projected under spend on non domestic rates. 101 Projected under recovery of income due to reduced attendances at Kids Clubs Primary Sector 854 Slippage target currently not being met within primary sector due to requirement to maintain teacher numbers partially offset by the impact of strikes that took place earlier this financial year. (75) (50) Projected under spend on home to school transport. Secondary Sector 2 Staff slippage target not being met. (20) Projected under spend on period poverty activity. (37) Projected under spend due to non-domestic rates revaluations. (27) Projected under spend on home to school transport. 4 Increased loan charges due to interest rate rises. 82 Projected shortfall in income from Renewable Heat Incentive rebate. Special Sector (817) Additional slippage due to turnover of staff, appointments at the lower end of pay scales and impact of strikes that took place earlier this financial year. (20) Projected under spend on supplies and services. 34 Projected over spend on home to school transport. 14 Increased loan charges due to interest rate rises. (39) Projected under spend on residential placements. SERVICE Summary of Service Variances 5 Page 33 of 104
Page 34
APPENDIX 2 PERTH & KINROSS COUNCIL - GENERAL FUND 2023/24 PROJECTED OUTTURN - SERVICE ANALYSIS (Based on Expenditure to 31 January 2024) Variance Variance £'000 £'000SERVICE Summary of Service Variances Services for Children, Young People & Families (425) Projected under spend taking account of non-recurring funding of £800,000 provided for 2023/24 and staff slippage due to delays in filling posts and proactive workforce management as part of the transformation (44) Projected net under spend due to Acorn funding and criminal justice, partially offset by projected over spends on legal fees and translation / interpreter services. (41) Projected under spend on property costs. 50 Projected over spend on client travel. 191 The budget for young people with complex behavioural issues, which includes a number of pupils placed within residential schools, is projected to over spend based on the latest placements. This includes the provision of £1.152 million of non-recurring funding. 82 Projected over spends on Foster Care (£43,000) and Adoption (£82,000) partially offset by projected under spends on Kinship Care (£43,000). 25 There is a projected over spend in relation to supporting care experienced young people (continuing care, supported accommodation) due to a doubling of the number of DWP clients. 84 There is a projected over spend on self directed support (children & disability team - respite provision) due to the level of demand and an increase to the hourly rate paid to clients. (259) Additional grant funding from Unaccompanied Asylum Seeking Children (£241,000) and Wellbank (£18,000) which offset some of the costs above. Business and Resources Services (160) Additional slippage due to turnover of staff. (45) Projected net under spend across several budget headings including transport, school uniform grants and breast buddies, partially offset by over spends on SEEMIS Licence costs, courier recharges, electrical testing & advertising. Catering Services (370) Projected under spend within the Early Learning & Childcare 1140 grant for nursery meals based on latest uptake. (841) Projected under spend on the provision of school meals due to increased uptake and updated projections from Tayside Contracts. Page 34 of 104
Page 35
APPENDIX 2 PERTH & KINROSS COUNCIL - GENERAL FUND 2023/24 PROJECTED OUTTURN - SERVICE ANALYSIS (Based on Expenditure to 31 January 2024) Variance Variance £'000 £'000SERVICE Summary of Service Variances Communities Total 373 ENVIRONMENTAL AND CONSUMER SERVICES Roads (125) Projected additional income from statutory road network works 165 Projected over spend on flood maintenance contracts (75) Projected under spend on Street Lighting maintenance 2,213 Projected additional costs relating to severe weather events in October 2023. (1,415) Income recoverable from the Scottish Government under the terms of the Bellwin Scheme 150 Additional costs in relation to maintenance around the River Ericht (150) Contribution from Scottish Government to River Ericht works (125) Projected saving on street lighting contract 50 Projected over spend on winter maintenance response. 90 Almondbank Flood Prevention Scheme Revenue Contribution Regulation 25 Projected shortfall in Corporate Health and Safety income Operations 200 Projected net shortfall in commercial waste income (250) Projected additional income from sale of recyclates due to favourable market prices and introduction of twin- streaming collection 100 Additional hire costs for refuse collection vehicles (100) Projected saving on waste disposal contract following introduction of twin-streaming collection 125 Projected over spend on supplies and services Fleet Management (115) Saving on loan charges due to slippage on planned vehicle replacement programme 250 Additional cost of vehicle materials and repairs Waste Strategy 40 Additional consultancy costs to support the review of operational assets. 130 Projected expenditure on education and awareness for introduction of twin-streaming collection service Bereavement Services (40) Additional income from Bereavement Services CULTURE AND COMMUNITIES 150 Savings delayed on Single Cultural Trust. (35) Projected under spend on period dignity activity. PLANNING AND DEVELOPMENT 90 Perth Harbour - projected increase in operating costs /shortfall in income. Some of these costs will continue beyond the current financial year. (100) Projected additional Planning & Building Warrant Income based on income trend to date 100 Projected over spend / under recovery of income within Events budgets 60 Projected over spend within Estates Commercial Property account. (50) Projected under spend of energy costs, net of maintenance costs for electric vehicle charging points. 65 Projected over spend on legal costs associated with planning appeals. (20) Projected under spend across Business & Place 25 Projected over spend within Smart Investment HOUSING 50 Projected increase in energy costs at Greyfriars Hostel 30 Void rent loss for housing support properties 10 Increased energy costs and rates within dispersed PKC accommodation (20) Temporary accommodation - reduction in estimated bad debt provision (20) PKC Lets Management Fee Income BUSINESS AND RESOURCES Service Wide (1,200) Slippage in excess of budgeted target. 30 Projected over spend on IT licensing and support costs. 35 Overspend within non-staff budgets across the service Page 35 of 104
Page 36
APPENDIX 2 PERTH & KINROSS COUNCIL - GENERAL FUND 2023/24 PROJECTED OUTTURN - SERVICE ANALYSIS (Based on Expenditure to 31 January 2024) Variance Variance £'000 £'000SERVICE Summary of Service Variances Public Transport Unit / Car Parking Account 25 Perth Bus Station - increased costs 60 Projected net over spend on Tendered Services (130) Projected additional income from park and ride departure charges. 35 Additional IT licensing costs 40 Delay in achieving Corporate Asset Management Savings Corporate & Democratic Services Total (228) Legal & Governance Services (84) Projected under spend on staff costs. 13 Updated projections in relation to income and supplies and services. Finance 118 Over spend on external audit fee following increase in charges and licensing costs. Human Resources (177) Projected net under spend on staff costs, supplies & services and income. Information Technology and Revenues & Benefits (74) Projected under spend on staff costs 179 Projected net over spend on supplies and services, including postages, interpreter services and licensing costs and third party / transfer payments. 155 Projected net over spend on crisis grants and community care grants Property 425 Projected overspend on property maintenance across the Council estate (461) Projected under spend on energy based on consumption to date. (229) Projected under spend on Pullar House due to updated inflation assumptions (93) Projected net under spend across the all other Property function budgets. Chief Executive Service Total 73 Core Costs 73 Projected over spends across the Service, including one off costs of change as the Council moves to the new leadership structure. TOTAL (2,543) Page 36 of 104
Page 37
APPENDIX 3 Perth & Kinross Integration Joint Board (IJB) Projected outturn based on Revenue Monitoring to 31 December 2023 Social Care Health Health & Social Care Partnership £'000 £'000 £'000 DEVOLVED FUNCTIONS Older People Services 2,585 (44) 2,541 Adult Services (642) (448) (1,090) Other Community Services (271) 0 (271) Management/Commissioned/Other (120) (295) (415) Undelivered Savings 708 740 1,448 Sub Total - Hospital & Community Health 2,260 (47) 2,213 P&K IJB Lead Partner 0 (951) (951) Dundee & Angus Hosted Services Recharges In/Out 0 1,097 1,097 Sub Total - Lead Partner Arrangement 0 146 146 GP Prescribing / Other Family Health Services 0 3,040 3,040 General Medical Services / Family Health Services 0 44 44 Sub Total - PKHSCP 2,260 3,183 5,443 Approved Use of General Reserves in 2023/24 (1,813) (2,970) (4,783) Total Projected Outturn PKHSCP 447 213 660 NON - DEVOLVED FUNCTIONS (330) (330) Projected Out-turn Over / (Under) Spend 5 Page 37 of 104
Page 38
Page 38 of 104
Page 39
APPENDIX 4 PERTH & KINROSS COUNCIL - HOUSING REVENUE ACCOUNT 2023/24 PROJECTED OUTTURN (Based on expenditure to 31 January 2024) £'000 (163) Housing Repairs Projected under spend on staff costs (£161,000), service & maintenance contracts (£110,000), planned maintenance (£70,000) and supplies & services (£9,000). This is partially offset by projected savings on energy costs (£63,000), EICRs (£44,000), external voids (£30,000), transport hire (£29,000) and internet of things (£21,000). (30) Improvements Additional Renewable Heat Incentive income (£61,000) and projected under spends on staff costs (£39,000) and other costs (£8,000), partially offset by additional costs in relation to retrofit strategy (£78,000) partially offset by projected under spend on staff costs (£10,000). 279 Letham, North & South Projected over spends on IT costs (£90,000); staff costs (£76,000), decant costs in relation to burst pipes (£44,000); garden maintenance (£31,000); costs of uplifts, cleans & grass cuts (£64,000); cleaning (£5,000) and other non-staff related budgets (£5,000). These are partially offset by a projected under spend on sheriff officer fees (and related income) (£20,000), transport costs (£13,000) and additional income (£3,000). 0 Perth City and Specialist Projected over spends on decant costs / disturbance payments relating to burst pipes (£69,000), non-staff budgets (£17,000) and energy (£7,000), partially offset by projected under spends on additional income from the Common Housing Register (£11,000) and recharges (£19,000) and additional staff slippage (£63,000). 58 Housing Management Projected over spend on staff costs (£26,000) and costs for the valuation of Council stock (£32,000). (520) Administration Projected under spend on bad debt provision based on latest assessment of arrears (£683,000), an increased net income from recharges to and from the Housing Revenue Account (£39,000) and under spends on property costs (£24,000). These are partially offset by additional void rent loss (£180,000) and increased sales ledger bad debt provision (£46,000). 96 Income Projected shortfall in mainstream rental income due to less properties than anticipated when budget was set (£334,000) and reduced income for commercial rent (£30,000). These are partly offset by projected increased income for Interest on Revenue Balances (£250,000) and additional income for garages and lock-ups (£18,000). 280 Capital Financed from Current Revenue As a result of the projected net under spends highlighted above, this is the increase in the amount available to invest in the HRA capital programme from the Revenue Budget. 0 Summary of Service Variances 5 Page 39 of 104
Page 40
Page 40 of 104
Page 41
APPENDIX 5 Other Grant Funding Education & Children’s Services Creative Scotland – Youth Music Initiative £245,208 Scottish Government – CJS Caledonian Funding £155,040 Communities UK Government – Homes for Ukraine Q2 £279,800 UK Government – Homes for Ukraine Q3 £252,800 Scottish Government – Ukraine Long Term Settlement Fund £84,213 TOTAL £1,017,061 5 Page 41 of 104
Page 42
Page 42 of 104
Page 43
Appendix 6 General Fund Reserves Update Proposals Included in Report Proposals Included in Report Commit- ments 31/3/23 23/24 24/25 25/26 23/24 24/25 Balance £m £m £m £m £m £m £m £m General Fund Balance 70.046 Balances Held Under Statute / Regulation - Revenue Grants (15.947) 9.755 (6.192) - Council Tax Income for affordable housing (4.353) 0.112 0.157 (0.283) (4.367) - Developers Contributions: Affordable Housing (4.298) (4.298) - Car Parking (1.512) 0.120 0.250 (1.142) - Developers Contributions: Commuted Sums (1.242) (1.242) - Devolved School Management (0.722) 0.722 0.000 Sub total (28.074) 10.589 0.277 (0.283) 0.000 0.000 0.250 (17.241) Balances Held for Specific (Previously Approved) Purposes - Services for Children, Young People & Families (2.139) 1.858 0.281 0.000 - Contribution to 2023/24 Revenue Budget (1.699) 1.699 0.000 - School Estate (2.063) 0.724 1.589 (0.805) (0.555) - Learning Estate Decants (0.700) 0.700 0.000 - Culture (1.172) 0.091 0.370 0.236 0.204 (0.271) - Financial Insecurity (0.680) 0.680 0.000 - School Counsellors (0.556) 0.227 0.227 0.102 0.000 - Works Maintenance (0.400) 0.200 (0.200) - Modern Apprentice Scheme (0.340) 0.000 0.340 0.000 - Project Feasibility Fund (Covid-19) (0.279) 0.211 0.040 (0.028) - Cemetery Walls (0.271) 0.009 0.126 0.119 (0.017) - Perth and Kinross Offer (0.252) 0.252 0.000 - PH20 (0.212) 0.150 (0.062) - Working Smarter (Covid-19) (0.194) 0.079 0.115 0.000 - UCI Cycling World Championships (0.180) 0.180 0.000 Approved Contributions from / (to) Reserves 5 Page 43 of 104
Page 44
Appendix 6 General Fund Reserves Update Proposals Included in Report Proposals Included in Report Commit- ments 31/3/23 23/24 24/25 25/26 23/24 24/25 Balance £m £m £m £m £m £m £m £m Approved Contributions from / (to) Reserves - Community Resilience 0.000 (0.175) (0.175) - Climate Change (0.153) 0.153 (0.110) 0.110 0.000 - Ventilation Measures (0.114) 0.090 (0.024) - Salix (0.113) 0.025 0.088 0.000 - Local Area Partnerships (0.090) 0.030 (0.060) - Community Investment Fund (0.089) 0.051 (0.038) - Grounds Maintenance ( A9/A85) (0.060) 0.060 0.000 - Local Government Elections 0.000 (0.053) (0.053) (0.053) 0.159 0.000 - Financial Assistance (Mod) 0.000 (0.020) (0.020) (0.020) (0.060) - Council Approved Expenditure 0.000 (0.653) 0.653 (0.474) 0.474 0.000 Sub total (11.756) 6.568 3.173 0.148 (1.153) 1.039 0.491 (1.490) Balances Held for Other Purposes 0.000 - Transformation & Workforce Management (9.530) 2.528 0.356 0.060 0.056 1.182 1.000 (4.348) - Anti - Poverty (2.193) 0.529 0.575 0.035 (1.054) Sub total (11.723) 3.057 0.931 0.095 0.056 1.182 1.000 (5.402) Earmarked Reserves (51.553) 20.214 4.381 (0.040) (1.097) 2.221 1.741 (24.133) Uncommitted General Fund Balance 18.493 Impact of Current Year Projected Outturn 1.373 Commitments from unearmarked Reserves (3.008) Updated Uncommitted General Fund Balance 16.858 Percentage of Net Revenue Budget 3.7% Page 44 of 104
Page 45
APPENDIX 7 Council Approved Projects - 1 March 2023 Education & Children’s Services Food and Fun activities - School Holidays £20,000 Communities Rural Events £30,000 Green Capital Recovery Fund £424,000 Chief Executive's Service Child Poverty Small Grants £50,000 Total £524,000 5 Page 45 of 104
Page 46
Page 46 of 104
Page 47
Appendix 8 FINANCIAL RISKS Risk to Revenue Budget Mitigation 1 Achievement of staff slippage targets, particularly relating to teacher numbers and impact on pupil / teacher ratio - Proactive workforce management - Revenue monitoring - Future budget submissions 2 Increasing demand / need / complexity for services for children, young people and families and reducing budgets. - Proactive management - Revenue monitoring - Future budget submissions 3 Ceasing of additional Financial Insecurity Funding on 31 March 2024. - Proactive management - Revenue monitoring - Future budget submissions 4 Current year non-teaching pay awards - Revenue monitoring - Future budget submissions 5 Support for Tayside Contracts - Tayside Contracts Governance & Strategy Group - Revenue monitoring - Future budget submissions 6 Inflation - Revenue monitoring - Future budget submissions 5 Page 47 of 104
Page 48
Page 48 of 104
Page 49
(1) (2) (3) (4) (5) (6) 2024/25 Previously Movements Virements Movements 2024/25 Council Approved in in Revised Approved Adjustments Funding Reserves Mgt Budget (Net) Budget £'000 £'000 £'000 £'000 £'000 £'000 SECTION 1 Service Budgets Economy, Place & Learning 262,153 (3,370) 139 584 259,506 Strategy, People & Resources 91,813 1,075 1,637 94,525 Sub - Total: Service Budgets 353,966 0 (2295) 139 2,221 354,031 SECTION 2 Corporate Budgets Health & Social Care 87,498 6,764 94,262 Contribution to Valuation Joint Board 1,328 1,328 Capital Financing Costs 16,628 16,628 Interest on Revenue Balances (5,411) (5,411) Net Contribution to/(from) Capital Fund 6,710 6,710 Contribution to/(from) Insurance Fund 200 200 Trading Operations Surplus (550) (550) Support Service External Income (2,238) (2,238) Tayside Pension Fund 1,655 1,655 Apprenticeship Levy 956 956 Leadership and procurement targets (1,505) (1,505) Council Tax Reduction Scheme 7,400 7,400 Discretionary Relief 1,104 1,104 Net Expenditure (General Fund) 467,741 0 4,469 139 2,221 474,570 SECTION 3 Funding Revenue Support Grant (275,847) (4,266) (280,113) Ring Fenced Grant (3,806) (3,806) Non Domestic Rate Income (65,152) (203) (65,355) Council Tax Income (107,517) (107,517) Capital Grant (1,600) (139) (1,739) Total Financing (453,922) 0 (4,469) (139) 0 (458,530) Financed from/(returned to) Reserves 13,819 0 0 0 2,221 16,040 PERTH & KINROSS COUNCIL GENERAL FUND 2024/25 REVENUE BUDGET - SUMMARY APPENDIX 9 5 Page 49 of 104
Page 50
Page 50 of 104
Page 51
PERTH & KINROSS COUNCIL Finance & Resources Committee 24 April 2024 COMPOSITE CAPITAL BUDGET 2023/28 & HOUSING INVESTMENT PROGRAMME 2023/28 – MONITORING REPORT No.4 Report by Strategic Lead – Finance & Business Support (Report No. 24/131) 1. PURPOSE 1.1 This report provides a summary position to date for the 5-year Composite Capital Budget and the 5-year Housing Investment Programme for 2023/24 to 2027/28 and seeks approval for adjustments to the programmes. 2. RECOMMENDATIONS 2.1 It is recommended that the Committee: (i) notes the contents of the report. (ii) approves the proposed adjustments to the five-year Composite Capital Budget 2023/24 to 2027/28 set out in Sections 5 and 6 of the report and summarised in Appendices I and II. (iii) approves the proposed adjustments to the Housing Investment Programme Budget 2023/24 to 2027/28 set out in Section 7 of the report and summarised in Appendix III. (iv) notes progress with the delivery of major Capital projects as summarised in Appendix IV. 3. STRUCTURE 3.1 The report is structured over the following sections: • Section 4: Background / Main Issues • Section 5: Composite Capital Programme – Gross Capital Resources • Section 6: Composite Capital Programme – Expenditure • Section 7: Housing Investment Programme • Section 8: Summary 4. BACKGROUND / MAIN ISSUES 4.1 The Finance & Resources Committee approved an updated five-year gross Composite Capital Budget for 2023/24 to 2027/28 totalling £623.916 million and a five-year gross Housing Investment Programme for 2023/24 to 2027/28 totalling £92.205 million at its meeting on 31 January 2024 (Report 24/41 refers). 6 Page 51 of 104
Page 52
4.2 At its meeting on 28 February 2024, the Council approved a revised Composite Capital Budget for the 6 years 2024/25 to 2029/30 (Report 24/64 refers). In line with the previous reports for 2023/24, this report only refers to years 2023/24 to 2027/28 with the total gross budget approved for the 5 years, including 2023/24, totalling £673.453 million. This includes the adjustments approved by the Council for these years on 28 February 2024, whilst the budgets for 2028/29 and 2029/30 will be included in the monitoring reports for 2024/25. 4.2 This report advises on expenditure to 29 February 2024, and the latest estimate of the projected outturn for each of the years to 2027/28 for the Composite Programme and for the Housing Investment Programme. 5. COMPOSITE CAPITAL PROGRAMME – GROSS CAPITAL RESOURCES 5.1 On 28 February 2024 the Council approved a revised Composite Capital Budget totalling £673.453 million for the years 2023/24 to 2027/28, which reflected an increase in resources of £49.537 million from the Budget approved on 31 January 2024. All approved movements in resources and expenditure have been included in Appendices I and II of this report and are summarised in the table below: Increase in Gross Expenditure: £m Bertha Park Link Road 13.200 Comrie Flood Scheme 11.577 South Kinross Flood Scheme 11.314 Milnathort Flood Scheme (1.306) Flood Mitigation – Dunkeld and Craigie Burn 1.000 IT Licensing & Infrastructure 6.330 Friarton Depot Waste Transfer Station 3.000 Economic Development 2.000 Other (Mosaic, Traffic Signals, CWSR, Community Planning) 2.422 Total Increase in Gross Expenditure 49.537 Funded By: Increase in General Capital Grant (Flood Schemes, CWSR, General Allocation) (16.553) Capital Receipt (0.400) Increase in Borrowing 32.584 5.2 As a result of ongoing monitoring of the programme, further adjustments to the budget are proposed. The current estimated total gross capital resources (which includes movements in Capital Receipts, Capital Grants, Contributions and borrowing) available over the five years 2023/24 to 2027/28 amount to £678.939 million. Page 52 of 104
Page 53
5.3 Movements from the revised Composite Capital Budget approved on 28 February 2024 for the five years are summarised in the table below, and the constituent elements for each year are shown in Appendix I. Total Gross Composite Capital Resources Approved 28 February 2024 Current Estimate Movement £m £m £m 2023/24 184.831 158.138 (26.693) 2024/25 207.568 201.068 (6.500) 2025/26 119.305 90.913 (28.392) 2026/27 90.371 106.406 16.035 2027/28 71.378 122.414 51.036 Total 673.453 678.939 5.486 5.4 The overall movement in total Gross Resources for the 5 years 2023/24 to 2027/28 since 28 February 2024 shown at Section 5.2 above can be summarised as follows: £’m Increase in Ring-Fenced Receipts (Section 5.5) 0.078 Decrease in Revenue Contributions (Section 5.6) (0.023) Increase in Third Party Contributions (Section 5.7) 0.231 Increase in Borrowing Requirement (Section 5.8 and 5.9) 5.200 Increase in Gross Capital Resources (Section 5.3) 5.486 5.5 There has been some rephasing of General Fund and Commercial Property receipts across the 5-year programme but with no change to the overall totals under each category. However, there is an increase in Ring-Fenced receipts of £78,000 in the current year (disposal of vehicles). 5.6 Revenue Contributions have reduced by a total of £23,000 over 2023/24 and 2024/25, relating to Mosaic (reduction of £74,000, Section 6.4.5 refers), Traffic and Road Safety (increase of £40,000, Section 6.3.2 refers) and Community Greenspace (increase of £11,000. Section 6.3.10 refers). 5.7 Third Party Contributions have increased by £218,000 in 2023/24 and £13,000 in 2024/25, relating to Structural Maintenance (£176,000, Section 6.3.3 refers), Community Greenspace (£51,000, Section 6.3.10 refers) and Other Planning Projects (£4,000). 5.8 The projected borrowing requirement in 2023/24, which is effectively the balancing item for resources, is £109.837 million. This is £25.533 million lower than the borrowing requirement approved by Council on 28 February 2024. 5.9 The total borrowing requirement in the subsequent years 2024/25 to 2027/28 has increased by £30.733 million to £425.984 million, resulting in an overall increase of £5.2 million in the total level of borrowing across the whole 5-year programme. The movement in borrowing is summarised as follows: Page 53 of 104
Page 54
Page 54 of 104
Page 55
2023/24 2024/25 2025/26 Later Years Total £m £m £m £m £m Increase in Prudential Borrowing – Communities (net of receipts) (Section 6.3.12) (0.168) 5.228 0.050 0.090 5.200 Movements arising from re- phasing of expenditure and receipts (Appendix II) (25.365) (13.212) (28.404) 66.981 0.000 Increase/(Decrease) in Borrowing Requirement (25.533) (7.984) (28.354) 67.071 5.200 5.10 The chart below shows the Capital Resources required to fund the 2023/24 Composite Capital Programme following the proposed budget adjustments detailed in this report. 6. COMPOSITE CAPITAL PROGRAMME – EXPENDITURE 6.1 Total Expenditure and Proposed Budget Adjustments to the Current Programme 6.1.1 Total expenditure (net of grants and contributions) to 29 February 2024 on the Composite Capital Programme is detailed in Appendix II and summarised as follows: Projected Outturn (£m) Net Expenditure to 29 February 2024 (£m) % of Projected Outturn Education & Children’s Services 53.443 39.656 74% Communities 73.438 68.953 94% Health & Social Care 1.053 0.557 53% Corporate & Democratic Services 8.623 5.438 63% Total Net Capital Expenditure 136.557 114.604 84% 69.5% 26.2% 0.2% 1.8% 1.3% 1.0% 4.3% Projected Capital Resources 2023/24 (March 2024) Borrowing (£109.837M) Grants (£41.479M) Tay City Deal (£0.271M) Developer Contributions (£2.847M) Third Party & Revenue Contributions (£2.087M) Receipts (£1.617M) £Million Page 55 of 104
Page 56
6.1.2 The Service Budget projections included within this section and Appendix II to Appendix IV have been prepared based on the Council’s previous structure. Going forward, future reports will reflect the new structure. A comprehensive monitoring exercise has been carried out, which is detailed in Appendix II. The most significant features are discussed below. 6.1.3 In common with all Scottish local authorities and public and private sector bodies, the Council has experienced significant inflationary pressures on the delivery of its Capital investment programme over the past few years. 6.1.4 The Building Cost Information Service (BCIS) publish well established cost indices for the construction industry. The BCIS All-in Tender Price Index, which shows the general movement on construction pricing, currently forecasts a 2.9% increase in construction costs in the current year compared to 8.6% for the same period last year, indicating a continuing slowdown in construction inflation. BCIS expects annual growth in tender prices to continue to fall, reaching 1.6% by the end of 2024, however, global issues may significantly impact both haulage costs for raw materials and fuel costs and the situation will be kept under review. 6.2 Education & Children’s Services 6.2.1 The Executive Director (Education & Children’s Services) reviewed the programme for their Service and proposed the following budget adjustments which reflect the rephasing of existing budgets: Project 2023/24 £m 2024/25 £m Later Years £m Description Investment in Learning Estate 0.243 (0.243) 0.000 Acceleration of budget to align with works completed in 2023/24. Methven Primary School Refurbishment 0.119 (0.119) 0.000 Acceleration to cover fees that were incurred earlier than previously anticipated. New Primary School at Bertha Park site 0.159 0.000 (0.159) Programme previously revised in line with current/anticipated housebuilding in the catchment area. Rephasing of some funding to cover the fees incurred in 2023/24. Perth Academy Refurbishment 0.755 (0.755) 0.000 Rephasing of budget to align with latest estimated cashflow and year end projection from the contractor. Perth Grammar School 0.263 (0.263) 0.000 Planned works were previously rephased by one year to reflect diversion of resources towards replacement of Reinforced Autoclaved Aerated Concrete (RAAC) roof during 2023. Acceleration reflects cost of works that were actioned during 2023/24. Page 56 of 104
Page 57
Perth High School – New School (4.840) 4.840 0.000 Rephasing of budget to align with latest estimated cashflow from the contractor. There is no change to the planned completion date. 6.2.2 All of the above proposed adjustments have been reflected in Appendix II. 6.3 Communities 6.3.1 The Executive Director (Communities) reviewed the programme for their Service and proposed various budget adjustments, the most significant of which are described below. 6.3.2 Within Traffic & Road Safety, it is proposed to transfer £66,000 from Pedestrian Crossings in future years to Cycling, Walking and Safer Streets (CWSS) in the current year. Consequently, it is also proposed to reallocate £66,000 of CWSS grant to this programme. In addition, due to increased costs on the extension of car parking within Auchterarder, an additional Revenue Contribution from the Car Parking Reserve of £40,000 is proposed. 6.3.3 Within the Structural Maintenance budget, it is proposed to move £922,000 to 2024/25 due to the team focussing on works as part of the Bellwin Scheme. This movement encompasses an underspend of £746,000 in the current year, combined with additional Third-Party Contributions of £91,000 from Scottish Forestry, £80,000 from Scottish Gas towards reinstatement works and £5,000 for Road Adoptions. In addition, within Roads and Lighting the following smaller adjustments are proposed: Project 2023/24 £m 2024/25 £m Later Years £m Description Traffic Signal Renewals (0.069) 0.069 0.000 During 2023/24 some works to traffic signals were funded in Revenue with an impact on capital signal works. These are now scheduled for 2024/25. Footways 0.077 (0.020) (0.057) Funding to be accelerated from future years towards additional works on Tay Street. 6.3.4 Within Asset Management – Bridges, it is proposed to draw down £42,000 from the Bridge Refurbishment Programme to Culteuchar Culvert in 2023/24, with a further amount of £20,000 in 2024/25. In addition, the following rephasings are proposed: Page 57 of 104
Page 58
Project 2023/24 £m 2024/25 £m Later Years £m Description Bridge Refurbishment Programme (0.222) (0.696) 0.918 Ongoing assessment of the works to be completed during 2023/24 and 2024/25 has concluded there will be underspend in both years. It is proposed this underspend is rephased equally into future years. Old Perth Bridge Perth Queen’s Bridge (0.140) (0.083) 0.040 0.083 0.100 0.000 All works that can be completed prior to major works in 2025/26 have concluded. The remaining budget is rephased in line with planned works on Old Perth Bridge and Queen’s Bridge following the opening of Destiny Bridge. Garry Viaduct (0.072) 0.072 0.000 There are delays on consultancy work for Garry Viaduct and it is proposed £72,000 is moved by one year to 2024/25. 6.3.5 Within Improvement Schemes, £213,000 of the contingency budget within the A9/A85 Road Junction Improvements budget is not required in 2023/24, and it is therefore proposed that this is moved to 2024/25. The Cross Tay Link Road (Destiny Bridge) project is progressing as planned and is currently on schedule, however it is proposed that £15.057 million is rephased from 2023/24 to 2024/24 following a review of the value of works completed by the 31 March 2024. In addition, design and consultancy works have progressed in 2023/24 for the Bertha Park Link Road, with ground investigations and further consultancy due to take place in 2024/25. Accordingly, it is proposed £324,000 and £368,000 are accelerated from 2027/28 to cover these respectively. 6.3.6 Within Public Transport it is proposed the budget of £199,000 for Community Transport Initiatives is moved to 2024/25 as a result of the 26 week lead time to purchase vehicles. 6.3.7 Within Flood Schemes, works at Comrie are expected to commence in August 2024 by the works contractor. The works on the scheme were previously expected to last for 18 months but has been revised to 24 months. The flood scheme at South Kinross is facing potential land acquisition difficulties and as such is also likely to be delayed, whilst the flood scheme at Scone has been paused by the Scottish Government with major works unlikely to take place prior to 2027/28. It has therefore been necessary to revise the spend profile of these schemes as outlined below: Page 58 of 104
Page 59
2023/24 £m 2024/25 £m 2025/26 £m 2026/27 £m 2027/28 £m Comrie 0.000 0.121 (7.298) (1.623) 8.800 South Kinross 0.026 (1.496) (3.719) 1.964 3.225 Scone 0.000 0.004 (0.188) (0.348) 0.532 In addition to the above, within Flood Protection Measures the following rephasing’s are also proposed: Project 2023/24 £m 2024/25 £m Later Years £m Description South Inch Culvert Reinstatement (0.262) 0.262 0.000 Further engineering assessment is necessary resulting in a delay to work in 2023/24. Coastal Change Adaptation (0.100) 0.100 0.000 Flood team focussing on severe weather in latter part of 2023/24, this project has therefore not progressed as planned. 6.3.8 Within Place-making, the Mill Street Environmental Improvements have been completed and it is proposed that the remaining budget in 2023/24 of £78,000 is transferred to Perth City Centre Golden Route with £40,000 allocated to 2023/24 and the remaining £38,000 to 2024/25. In addition to this the following rephasing’s are proposed: Project 2023/24 £m 2024/25 £m Later Years £m Description Perth, Place, People (3.598) 3.598 0.000 Discussions are ongoing around potential schemes and the possibility of match funding. No scheme to progress in 2023/24. Perth & Kinross Lighting Action Plan (0.433) 0.433 0.000 The level of works to be completed in 2023/24 is lower than previously anticipated. It is proposed that £433,000 of the budget is moved into 2024/25. 6.3.9 In line with the Council decision on 28 February 2024, the budget for PH2O is to be reviewed as part of the Review of Leisure Assets. In the meantime, it is proposed that the existing budgets of the project in 2024/25 to 2027/28 be rephased over this period, as reflected in Appendix II. This will be reviewed further in light of the findings of the Review of Leisure Assets. 6.3.10 Within Community Greenspace, a Revenue Contribution of £11,000 and Third-Party Contribution of £13,000 have been provided towards Community Page 59 of 104
Page 60
Greenspace Bridges in 2023/24 and 2024/25 respectively, with a proposed subsequent increase in the expenditure budget. Additional Third-Party Contributions have also been received towards Core Path Implementation (£24,000) and Premier Parks (£14,000) with the expenditure budgets for each programme increased accordingly. On Community Greenspace Sites it is proposed that the budget in 2024/25 is reduced by £321,000 with a further reduction of £232,000 in 2025/26. Of this £432,000 is rephased to future years with the remaining £121,000 vired between other Community Greenspace projects as follows: Project 2023/24 £m 2024/25 £m Settlement / Neighbourhood Parks 0.001 0.050 Community Greenspace Bridges 0.000 0.056 Core Path Implementation 0.012 0.000 Premier Parks 0.006 0.000 Auchterarder Public Park (0.004) 0.000 0.015 0.106 6.3.11 Within Commercial Property Investment Programme, works on the Ruthvenfield Business Centre have been paused while other potential uses for the site are identified. It is therefore proposed that £1.256 million of the budget is moved into 2024/25. 6.3.12 Within the Prudential Borrowing Projects, on Recycling Containers, it is proposed to borrow an additional £160,000 over the next 4 years to cover increased costs of replacement. Additionally, on the Vehicle Replacement Programme, Fleet are continuing the catch-up exercise of vehicle purchases following worldwide supply issues which has also resulted in the significant increase in cost of new vehicles over the past couple of years. Deliveries are expected in 2024/25 for vehicles purchased in 2023/24 and it is therefore proposed to reduce the budget in 2023/24 by £113,000 and increase the budget in 2024/25 by £5.231 million. There are corresponding adjustments to capital receipts for vehicle disposals resulting in a net increase in borrowing of £5.040 million for vehicles. The total increase in Prudential Borrowing Projects is £5.2 million. 6.3.13 Within Housing Projects, following a vacancy on the team and with a focus on the chalet replacement project at Double Dykes, Gypsy Traveller Site Improvement works have not been progressed in 2023/24 and it is proposed that a total of £409,000 is moved into 2024/25. 6.3.14 All the above proposed adjustments, together with other small movements, have been reflected in Appendices I & II. 6.4 Corporate & Democratic Services 6.4.1 The Chief Operating Officer reviewed the programme for their Service and proposed the budget adjustments described below. Page 60 of 104
Page 61
Property Services 6.4.2 Within the Property Compliance Works Programme the preliminary work on the Friarton Depot Transfer Shed structural remedials are to take place following the 2023/24 year-end, and as such it is proposed that £327,000 is moved into 2024/25. Similarly, on the Capital Improvement Projects Programme with work scheduled to take place in 2024/25, it is also proposed that £238,000 of this budget is moved into 2024/25. 6.4.3 The Upgrade Programme at Pitlochry High School requires further infrastructure works which are likely to be disruptive. With the need to protect the learning environment these works could not take place in 2023/24 and will instead be undertaken during the summer holidays and require the moving of £136,000 to 2024/25. 6.4.4 Within Decarbonisation there is a delay to delivery of Phase II following delays in the completion of contract documentation with works now due to take place in 2024/25, with £150,000 of the budget moved accordingly. 6.4.5 Implementation of the Mosaic Social Work system is progressing and is anticipated to “go-live” in the summer 2024. Accordingly, an increased amount has been spent for Consultancy and Data Migration in 2023/24 with a corresponding reduction in 2024/25. It is therefore proposed to rephase the budget as shown in Appendix II. 6.4.6 All the above proposed adjustments, together with other small movements, have been reflected in Appendix II. 6.5 Health & Social Care 6.5.1 Within Occupational Therapy Equipment, the service is seeing an increase in demand from the growing elderly population combined with an increase in the number of items of equipment individuals require, as well as inflationary cost increases for the equipment. It is therefore proposed that £100,000 is accelerated from 2027/28 to 2023/24. 6.5.2 The Technology Enabled Telecare project to upgrade the community alarm system has faced supply difficulties during the year and issues with some equipment requiring further testing prior to installation. These issues have now been resolved and it is expected the project will now continue as planned. It is therefore proposed that £350,000 of the budget in 2023/24 is rephased equally across future years. 7. HOUSING INVESTMENT PROGRAMME 7.1 The total current estimated expenditure, net of contributions, for the Housing Investment Programme over the 5 years 2023/24 to 2027/28 amounts to £96.205 million. This has increased by £4 million following the approval of the revised Housing Investment Programme by the Housing & Social Wellbeing Committee on 24 January 2024 (Report 24/24 refers) which allocated further resources to the Council House Buy-Back Programme from Page 61 of 104
Page 62
2024/25 to 2027/28. Movements from the previous estimates approved by this Committee on 31 January 2024 are summarised in the table below and detailed in Appendix III. Approved 31 January 2024 Current Estimate Movement £m £m £m 2023/24 18.738 19.249 0.511 2024/25 18.831 21.536 2.705 2025/26 17.248 19.942 2.694 2026/27 16.283 15.633 (0.650) 2027/28 21.105 19.845 (1.260) Total 92.205 96.205 4.000 Total Expenditure to 29 February 2024 (Housing Investment Programme) 7.2 Net expenditure for 2023/24 to 29 February 2024 amounts to £18.863 million and receipts amount to £11,000. Therefore, the borrowing requirement for the year to date is £18.852 million. 7.3 The Executive Director (Communities) reviewed the Housing Investment Programme and proposed the budget adjustments outlined below. 7.4 Phase 2 of the Council House New Build Programme at Lynedoch Road, Methven has commenced with £1.243 million provided by the Scottish Government in 2023/24 and an allocation from Council Tax Second Home income of £240,000 in 2024/25. These amounts are complemented by proposed transfers of £91,000 into 2023/24 and £932,000 into 2024/25 from Future Developments budget in 2027/28. 7.5 It is proposed to transfer a further £1.237 million from the New Build Future Developments Budget in 2027/28 to the Council House Buy-Back programme in 2023/24. This is supplemented by additional grant of £630,000 from the Scottish Government and reflects the additional properties being purchased in the current year. A total of 48 properties have been purchased this year, which exceeds the target of 30 properties. 7.6 On the Triple Glazing Programme, additional addresses have been identified that require an upgrade to their windows. It is proposed that £1.5 million is transferred from SHQS Future Developments in 2026/27 with £1.2 million allocated to 2023/24 and £300,000 in 2024/25. These movements also take account of some properties which were previously identified for triple glazing but not actioned due to access difficulties. Following considerable work by tenant liaison officers, access has now been achieved and the installations have commenced. Page 62 of 104
Page 63
7.7 The following rephasings/virements are also proposed: Project 2023/24 £m 2024/25 £m Later Years £m Description Heating Upgrade Contract Works 0.215 (0.215) 0.000 Accelerate due to improved access rates and addresses now certified that were previously missing completion certificates. Rewiring, Infrastructure & Property Refurbishment (0.850) 0.000 0.850 Based on current level of work completed in year. Environmental Improvements 0.150 0.000 0.000 Fund anticipated costs at Pullar Terrace and additional works to drainage work at Firbank Road. SHQS Future Developments 0.000 0.000 (0.150) Fire Precaution Measures (0.224) 0.224 0.000 Delay to completing contract due to access issues requiring forced access and delays to additional smoke detector fittings. Sound insulation (0.289) 0.289 0.000 No works were identified in 2023/24. Structural (0.463) 0.000 0.463 Minimal works undertaken in 2023/24, moved to future years. Anchor House, Rannoch Road (0.060) 0.060 0.000 No further works to be carried out in 2023/24. Shops & Offices (0.239) 0.000 0.239 No works identified for 2023/24. Upgrade and Replacement to Lift Programme (0.116) 0.116 0.000 No works identified for 2023/24. ICT Expenditure (0.110) 0.000 0.110 Moved to 2025/26 based on latest projections. 7.8 Third party contributions of £35,000 have been received towards External Fabric works in 2023/24 and the expenditure budget has therefore been increased accordingly. Similarly, the Scottish Government have provided a grant of £71,000 towards Double Dykes Chalet Replacement resulting in an increase to the expenditure budget by the same amount in 2023/24. 7.9 The above proposed adjustments, together with other smaller adjustments within Appendix III, do not impact the borrowing requirement over the 5-year programme. However, there is an increase in Capital Funded from Current Revenue (CFCR) of £0.28 million in 2023/24, as reported in the Revenue Monitoring Report at this Committee meeting. Page 63 of 104
Page 64
7.10 The Housing & Social Wellbeing Committee also approved a reduction in CFCR of £1.398 million over the years 2024/25 to 2027/28 in January 2024, together with the additional £4 million allocated to Council House Buy-Backs. This increased the borrowing requirement for the overall programme by £5.398 million, which is offset by the increased CFCR above and an increase in capital receipts of £3,000 in the current year, resulting in a net total borrowing requirement of £85.819 million over the 5-year programme. 8. BUDGET OVERVIEW 8.1 The projected net expenditure outturn in 2023/24 for the Composite Capital Budget is £136.557 million and represents 77% of the original 2023/24 budget approved on 26 April 2023 (£178.033 million). The revised budget is based on the latest projections of expenditure and all budget adjustments outlined within this report. 8.2 Net expenditure to 29 February 2024 on the Composite Capital Budget is £114.604 million and represents 84% of the proposed revised budget for 2023/24 of £136.557 million. The actual expenditure does not include accrued expenditure or provision for works certified as completed. All such expenditure is accounted for when preparing the final outturn as at 31 March 2024. 8.3 The projected net expenditure outturn in 2023/24 for the Housing Investment Programme is £19.249 million and represents 94% of the original 2023/24 budget approved on 26 April 2023 (£20.422 million). 8.4 Net expenditure to 29 February 2024 on the Housing Investment Programme is £18.863 million which represents 98% of the proposed revised budget for 2023/24 of £19.249 million. 8.5 The Council’s total Borrowing Requirement to 29 February 2024, based on the Composite and Housing Investment Programmes, is £112.235 million. The estimated overall Council Borrowing Requirement for 2023/24 as a whole has reduced by £32.056 million to £126.74 million as a result of the monitoring adjustments reflected within this report. This mostly reflects updated cashflow estimates on larger contracts as the year-end approaches. Over the whole 5- year programme, there is an increase of £5.2 million in the overall level of borrowing on the Composite Programme relating to Communities Prudential Borrowing projects, and an increase in borrowing of £5.115 million on the Housing Investment Programme relating to Council House Buy-Backs and adjustments to CFCR. 8.6 While the projections have been based on a comprehensive monitoring exercise, they continue to remain subject to uncertainty due to ongoing inflationary pressures in the current economic environment. Author(s) Name Designation Contact Details John Jennings Senior Accountant CHXFinance@pkc.gov.uk Page 64 of 104
Page 65
Approved Name Designation Date Scott Walker Clare Mailer Strategic Lead – Finance & Business Support Director (Strategy, People & Resources) 17 April 2024 Page 65 of 104
Page 66
ANNEX 1. IMPLICATIONS, ASSESSMENTS, CONSULTATION AND COMMUNICATION Strategic Implications Yes / None Community Plan / Single Outcome Agreement None Corporate Plan Yes Resource Implications Financial Yes Workforce Yes Asset Management (land, property, IST) Yes Assessments Equality Impact Assessment Yes Strategic Environmental Assessment Yes Sustainability (community, economic, environmental) Yes Legal and Governance None Risk None Consultation Internal Yes External None Communication Communications Plan None 1. Strategic Implications Corporate Plan 1.1 The Council’s Corporate Plan 2022 – 2027 lays out seven outcome focussed strategic objectives which provide clear strategic direction, inform decisions at a corporate and service level and shape resources allocation. They are as follows: • Tackling Poverty • Tackling climate change and supporting sustainable places • Growing a sustainable and inclusive local economy • Enabling our children and young people to achieve their full potential • Protecting and caring for our most vulnerable people • Supporting and promoting physical and mental wellbeing • Placing communities at the heart of how we work 1.2 This report relates to all of these objectives. 2. Resource Implications Financial 2.1 There are no direct financial implications arising from this report other than those reported within the body of the main report. Page 66 of 104
Page 67
Workforce 2.2 There are no direct workforce implications arising from this report other than those reported within the body of the main report. Asset Management (land, property, IT) 2.3 There are no direct asset management implications arising from this report other than those reported within the body of the main report. 3. Assessments Equality Impact Assessment 3.1 Under the Equality Act 2010, the Council is required to eliminate discrimination, advance equality of opportunity, and foster good relations between equality groups. Carrying out Equality Impact Assessments for plans and policies allows the Council to demonstrate that it is meeting these duties. 3.2 The information contained within this report has been considered under the Corporate Equalities Impact Assessment process (EqIA) and has been assessed as not relevant for the purposes of EqIA. Strategic Environmental Assessment 3.3 The Environmental Assessment (Scotland) Act 2005 places a duty on the Council to identify and assess the environmental consequences of its proposals. 3.4 The information contained within this report has been considered under the Act. However, no action is required as the Act does not apply to the matters presented in this report. Sustainability 3.5 Under the provisions of the Local Government in Scotland Act 2003 the Council has to discharge its duties in a way which contributes to the achievement of sustainable development. In terms of the Climate Change Act, the Council has a general duty to demonstrate its commitment to sustainability and the community, environmental and economic impacts of its actions. 3.6 The information contained within this report has been considered under the Act. However, no action is required as the Act does not apply to the matters presented in this report. 4. Consultation Internal 4.1 The Chief Executive and the Executive Directors have been consulted in the preparation of this report. Page 67 of 104
Page 68
2. BACKGROUND PAPERS No background papers, as defined by Section 50D of the Local Government (Scotland) Act 1973 (other than any containing confidential or exempt information) were relied on to any material extent in preparing the above report. 3. APPENDICES Appendix I – Composite Capital Programme - Estimated Capital Resources 2023/24 to 2027/28 Appendix II – Composite Capital Programme - Summary of Capital Resources and Expenditure 2023/24 to 2027/28 Appendix III – HRA Capital Investment Programme – Summary of Capital Resources and Expenditure 2023/24 to 2027/28 Appendix IV – Significant Capital Projects Progress Update Page 68 of 104
Page 69
PERTH AND KINROSS COUNCIL COMPOSITE CAPITAL PROGRAMME Estimated Capital Resources 2023/24 to 2027/28 APPENDIX I Capital Capital Capital Capital Capital Capital Resources Resources Resources Resources Resources Resources 2023/24 2024/25 2025/26 2026/27 2027/28 TOTAL (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) Revised Revised Revised Revised Revised Revised Budget Budget Budget Budget Budget Budget Capital Grants Cycling, Walking & Safer Routes (CWSR) 1,312 664 200 200 200 2,576 Recycling Improvement Fund 2,363 0 0 0 0 2,363 Cross Tay Link Road - Transport Scotland 15,000 0 0 0 0 15,000 Inspiring School Age Childcare Spaces 105 0 0 0 0 105 General Capital Grant 22,699 24,078 12,639 18,008 12,150 89,574 Total Capital Grants 41,479 24,742 12,839 18,208 12,350 109,618 General Capital Receipts General Fund - Capital Receipts 801 419 656 250 250 2,376 General Fund - Ring Fenced Receipts 443 500 352 902 1,047 3,244 Total General Capital Receipts 1,244 919 1,008 1,152 1,297 5,620 Commercial Property Receipts Capital Receipts brought-forward 2,245 1,872 1,120 1,550 1,550 2,245 Commercial Property Capital Receipts 0 712 430 0 1,088 2,230 Capital Receipts carried-forward (1,872) (1,120) (1,550) (1,550) (2,638) (2,638) Total Commercial Property Receipts Applied 373 1,464 0 0 0 1,837 Contributions Tay Cities Deal 271 999 550 505 2,946 5,271 Third Party Contributions 1,944 671 0 2,000 3,000 7,615 Developer Contributions 2,847 2,300 2,367 2,600 2,600 12,714 Revenue Budget Contributions 143 50 125 125 0 443 Total Contributions 5,205 4,020 3,042 5,230 8,546 26,043 Capital Borrowing Requirement 109,837 169,923 74,024 81,816 100,221 535,821 TOTAL CAPITAL RESOURCES/ GROSS BUDGET EXPENDITURE 158,138 201,068 90,913 106,406 122,414 678,939 6 Page 69 of 104
Page 70
PERTH AND KINROSS COUNCIL COMPOSITE CAPITAL PROGRAMME Estimated Capital Resources 2023/24 to 2027/28 APPENDIX I Movements in Resources from Approved Budget - 31 January 2024 Revised Revised Revised Revised Revised Revised Budget Budget Budget Budget Budget Budget 2023/24 2024/25 2025/26 2026/27 2027/28 TOTAL £'000 £'000 £'000 £'000 £'000 £'000 New Resources approved 28 February 2024 (6,351) 8,473 22,053 17,562 7,800 49,537 Increase/(Decrease) in: Capital Receipts - General Fund (103) 141 (38) 0 0 0 Capital Receipts - Commercial Property 0 0 0 0 0 0 Capital Receipts - Ring Fenced (70) 148 0 0 0 78 Capital Grants: Cycling, Walking & Safer Routes (CWSR) 0 0 0 0 0 0 Road Safety Improvement Fund 0 0 0 0 0 0 Regeneration Fund 0 0 0 0 0 0 Recycling Improvement Fund 0 0 0 0 0 0 Cross Tay Link Road - Transport Scotland 0 0 0 0 0 0 Inspiring School Age Childcare Spaces 0 0 0 0 0 0 General Capital Grant 0 0 0 0 0 0 Tay Cities Deal 4 0 0 0 0 4 Third Party Contributions 214 13 0 0 0 227 Revenue Contributions 51 (74) 0 0 0 (23) Developer Contributions 0 0 0 0 0 0 Resources b/f 0 1,256 0 0 0 1,256 Resources c/f to future years (1,256) 0 0 0 0 (1,256) Borrowing Requirement (25,533) (7,984) (28,354) 16,035 51,036 5,200 Total Increase/(Decrease) in Resources (33,044) 1,973 (6,339) 33,597 58,836 55,023 Approved Resources 31 January 2024 191,182 199,095 97,252 72,809 63,578 623,916 Revised Resources 158,138 201,068 90,913 106,406 122,414 678,939 Page 70 of 104
Page 71
PERTH AND KINROSS COUNCIL COMPOSITE CAPITAL PROGRAMME SUMMARY OF CAPITAL RESOURCES AND EXPENDITURE 2023/24 to 2027/28 APPENDIX II Approved Approved Proposed Revised Actuals Projected Revised Revised Revised Revised Revised Budget Budget Budget Budget to Outturn Budget Budget Budget Budget Budget Adjustment Adjustment 29-Feb-24 Report 3 28-Feb-24 Report 4 Report 4 Report 4 Report 4 Report 4 Report 4 Report 4 2023/24 2023/24 2023/24 2023/24 2023/24 2023/24 2024/25 2025/26 2026/27 2027/28 (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) EDUCATION AND CHILDREN'S SERVICES 56,744 0 (3,301) 53,443 39,656 53,443 66,456 26,894 21,904 22,223 190,920 COMMUNITIES 102,371 (6,351) (22,582) 73,438 68,953 73,438 112,513 52,793 71,752 79,436 389,932 HEALTH AND SOCIAL CARE 1,303 0 (250) 1,053 557 1,053 2,186 1,391 1,390 1,306 7,326 CORPORATE AND DEMOCRATIC SERVICES 9,382 0 (759) 8,623 5,438 8,623 17,029 8,608 7,628 12,256 54,144 TOTAL NET EXPENDITURE 169,800 (6,351) (26,892) 136,557 114,604 136,557 198,184 89,686 102,674 115,221 642,322 (NET OF GRANTS, REVENUE AND 3RD PARTY CONTRIBUTIONS, AND RING FENCED RECEIPTS) GENERAL CAPITAL GRANT (22,699) 0 0 (22,699) (20,179) (22,699) (24,078) (12,639) (18,008) (12,150) (89,574) DEVELOPER CONTRIBUTIONS (2,847) 0 0 (2,847) 0 (2,847) (2,300) (2,367) (2,600) (2,600) (12,714) CAPITAL RECEIPTS (504) (400) 103 (801) (291) (801) (1,131) (1,086) (250) (1,338) (4,606) ANNUAL BORROWING REQUIREMENT 143,750 (6,751) (26,789) 110,210 94,134 110,210 170,675 73,594 81,816 99,133 535,428 CAPITAL RECEIPTS BROUGHT FORWARD (2,245) 0 0 (2,245) (2,245) (2,245) (1,872) (1,120) (1,550) (1,550) (2,245) CAPITAL RECEIPTS CARRIED FORWARD 616 0 1,256 1,872 1,494 1,872 1,120 1,550 1,550 2,638 2,638 TOTAL NET BORROWING REQUIREMENT 142,121 (6,751) (25,533) 109,837 93,383 109,837 169,923 74,024 81,816 100,221 535,821 6 Page 71 of 104
Page 72
PERTH AND KINROSS COUNCIL COMPOSITE CAPITAL PROGRAMME SUMMARY OF CAPITAL RESOURCES AND EXPENDITURE 2023/24 to 2027/28 APPENDIX II Revised Approved Proposed Revised Actual Projected Revised Revised Revised Revised Revised Budget Budget Budget Budget to Outturn Budget Budget Budget Budget Budget Adjustment Adjustment 29-Feb-24 Report 3 28-Feb-24 Report 4 Report 4 Report 4 Report 4 Report 4 Report 4 Report 4 2023/24 2023/24 2023/24 2023/24 2023/24 2023/24 2024/25 2025/26 2026/27 2027/28 TOTAL (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) EDUCATION AND CHILDREN'S SERVICES MIS - SEEMIS Licensing 745 745 147 745 0 0 0 0 745 Blairgowrie Recreation Centre - Replacement 16,374 16,374 12,180 16,374 13,150 4,003 0 0 33,527 Schools Modernisation Programme Investment in the Learning Estate 1,491 243 1,734 1,345 1,734 10,145 8,550 8,650 6,823 35,902 Scottish Govt. Grant (Inspiring School Age Childcare Spaces) (105) (105) (105) 0 0 0 0 (105) Free School Meal Expansion Programme 1,348 1,348 1,348 2,000 0 0 0 3,348 Methven Primary School Refurbishment 124 119 243 45 243 21 0 0 0 264 Breadalbane Academy, Aberfeldy - 3G Pitch 29 29 18 29 0 0 0 0 29 Third Party Contribution (The Scottish Football Association) (29) (29) (14) (29) 0 0 0 0 (29) Kirkmichael Primary School Upgrades 0 0 6 0 32 0 0 0 32 Capital Receipt (ring-fenced) (128) (128) (127) (128) 0 0 0 0 (128) Early Learning & Childcare 0 0 0 0 0 0 0 0 - Oakbank Primary School Upgrade Project 12 12 12 12 0 0 0 0 12 - Rattray Primary School Upgrade Project 155 155 91 155 0 0 0 0 155 New Primary School at Bertha Park Site 559 159 718 473 718 0 341 7,500 15,400 23,959 Riverside Primary New School 3,410 3,410 2,767 3,410 0 0 0 0 3,410 Technology Upgrades 128 128 23 128 1,016 250 0 0 1,394 Perth Academy - Refurbishment 2,311 755 3,066 2,525 3,066 1,745 1,650 1,650 0 8,111 Perth Grammar School - Upgrade Programme Phase 3 849 263 1,112 603 1,112 1,857 1,500 504 0 4,973 Perth High School - Internal Services & Refurbishment 16 16 4 16 0 0 0 0 16 Perth High School - New School Investment 25,244 (4,840) 20,404 15,788 20,404 36,340 10,600 3,600 0 70,944 Harris Academy/Invergowrie - Extension 4,211 4,211 3,770 4,211 150 0 0 0 4,361 TOTAL: EDUCATION AND CHILDREN'S SERVICES 56,744 0 (3,301) 53,443 39,656 53,443 66,456 26,894 21,904 22,223 190,920 COMMUNITIES Traffic & Road Safety Road Safety Initiatives (20mph Zones etc..) 0 34 34 1 34 328 362 362 361 1,447 Road Safety Initiatives - A94 Safety Improvements 0 0 0 84 0 0 0 84 Additional Road Safety - Pedestrian Crossings 0 0 0 153 153 153 0 459 Schools Road Safety Measures 488 488 433 488 0 0 0 0 488 Scottish Government Grant - CWSS (66) 66 0 0 0 0 0 0 0 20mph Signage Programme - Schools 10 10 1 10 119 0 0 0 129 20mph Signage Programme 76 76 35 76 0 0 0 0 76 Cycling Walking & Safer Routes (CWSR) 1,396 66 1,462 811 1,462 664 200 200 200 2,726 Scottish Government Grant - CWSR (1,246) (66) (1,312) (646) (1,312) (664) (200) (200) (200) (2,576) Third Party Contribution (TACTRAN) (150) (150) (150) 0 0 0 0 (150) Car Parking Investment 356 40 396 255 396 0 0 0 0 396 Revenue Contribution (65) (40) (105) (65) (105) 0 0 0 0 (105) Car Parking Investment - Pitlochry 0 0 0 150 0 0 0 150 Sub-Total 799 0 100 899 825 899 834 515 515 361 0 3,124 Asset Management - Roads & Lighting Structural Maintenance 12,114 (746) 11,368 10,100 11,368 10,420 9,498 9,706 7,500 48,492 Third Party Contribution (Forestry Commission Timber Routes) (299) (91) (390) (299) (390) 0 0 0 0 (390) Third Party Contribution (14) (85) (99) (14) (99) 0 0 0 0 (99) Traffic Signal Renewals - Upgrading 73 (69) 4 4 169 100 100 100 473 Footways 578 77 655 602 655 390 390 390 393 2,218 Investment in Local Footpaths 0 0 0 0 60 100 0 160 Road Safety Barriers 22 (22) 0 0 22 0 0 0 22 Sub-Total 12,474 0 (936) 11,538 10,389 11,538 11,001 10,048 10,296 7,993 50,876 Page 72 of 104
Page 73
PERTH AND KINROSS COUNCIL COMPOSITE CAPITAL PROGRAMME SUMMARY OF CAPITAL RESOURCES AND EXPENDITURE 2023/24 to 2027/28 APPENDIX II Revised Approved Proposed Revised Actual Projected Revised Revised Revised Revised Revised Budget Budget Budget Budget to Outturn Budget Budget Budget Budget Budget Adjustment Adjustment 29-Feb-24 Report 3 28-Feb-24 Report 4 Report 4 Report 4 Report 4 Report 4 Report 4 Report 4 2023/24 2023/24 2023/24 2023/24 2023/24 2023/24 2024/25 2025/26 2026/27 2027/28 TOTAL (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) Asset Management - Bridges Bridge Refurbishment Programme 1,536 (264) 1,272 758 1,272 1,736 2,221 2,520 3,201 10,950 Vehicular Bridge Parapets Programme - Assess & Upgrade 0 0 1 0 35 0 0 0 35 Old Perth Bridge - Strengthening 190 (140) 50 50 50 2,469 0 0 2,569 Perth Queens Bridge - Strengthening 335 (83) 252 4 252 143 70 2,153 0 2,618 Garry Viaduct 110 (72) 38 38 372 300 1,900 1,790 4,400 Culteuchar Culvert 391 42 433 293 433 20 0 0 0 453 Sub-Total 2,562 0 (517) 2,045 1,056 2,045 2,356 5,060 6,573 4,991 21,025 Improvement Schemes A9/A85 Road Junction Improvements 270 (213) 57 52 57 213 0 0 0 270 Cross Tay Link Road (CTLR) 72,842 (15,057) 57,785 46,970 57,785 41,270 0 0 0 99,055 Scottish Government Grant (15,000) (15,000) (15,000) 0 0 0 0 (15,000) Bertha Park Link Road 0 324 324 324 668 400 10,000 1,808 13,200 A977 Upgrades 350 17 367 323 367 173 0 0 0 540 Brioch Road, Crieff - Road Realignment & Safety Measures 31 31 13 31 0 0 0 0 31 Sub-Total 58,493 0 (14,929) 43,564 47,358 43,564 42,324 400 10,000 1,808 98,096 Public Transport Community Transport Iniaitives 199 (199) 0 0 199 0 0 0 199 Sub-Total 199 0 (199) 0 0 0 199 0 0 0 0 199 Rural Flood Protection Schemes Almondbank Flood Protection Scheme 17 17 16 17 0 0 0 0 17 Perth Flood Protection Scheme (South Inch Culvert Reinstatement 354 (262) 92 84 92 262 0 0 0 354 Comrie Flood Protection Scheme 7,385 (6,233) 121 1,273 480 1,273 10,310 15,420 8,800 0 35,803 Milnathort Flood Protection Scheme 79 (28) 51 9 51 229 83 0 0 363 South Kinross Flood Protection Scheme 225 26 251 189 251 412 1,783 8,823 3,225 14,494 Scone Flood Protection Scheme 90 (90) 0 0 50 69 68 580 767 Flood Mitigation Measures - Dunkeld and Craigie Burn 0 0 0 1,000 0 0 0 1,000 Coastal Change Adaptation 100 (100) 0 0 100 0 0 0 100 Sub-Total 8,250 (6,351) (215) 1,684 778 1,684 12,363 17,355 17,691 3,805 52,898 Perth & Kinross Place-making Mill Street Environmental Improvements 127 (78) 49 50 49 0 0 0 0 49 Perth, Place, People 3,598 (3,598) 0 0 3,598 0 0 0 3,598 Perth City Centre Golden Route (Rail Station) 11 40 51 13 51 38 0 0 0 89 City Greening 31 (31) 0 0 31 0 0 0 31 Perth & Kinross Lighting Action Plan 1,071 (433) 638 322 638 1,110 0 0 0 1,748 Sub-Total 4,838 0 (4,100) 738 385 738 4,777 0 0 0 5,515 Other Planning Projects Creative Exchange (former St. John's Primary School) 53 53 53 0 0 0 0 53 Local Full Fibre Network 22 4 26 5 26 0 0 0 0 26 Third Party Contribution - Tay Cities Deal 0 (4) (4) (58) (4) 0 0 0 0 (4) Low Carbon Transport & Active Travel Hub - Broxden EV Chargers 429 429 436 429 0 0 0 0 429 Third Party Contribution - ERDF (162) (162) (160) (162) 0 0 0 0 (162) Third Party Contribution - Tay Cities Deal (267) (267) (253) (267) 0 0 0 0 (267) Perth Eco-Innovation Park at Perth West 0 0 0 23,800 9,017 0 0 32,817 Third Party Contributions - Tay Cities Deal 0 0 0 (999) (550) (505) (2,946) (5,000) Other Third Party Contributions 0 0 0 0 0 (2,000) (3,000) (5,000) Capital Receipts - Ring Fenced Land Disposals 0 0 0 0 0 (550) (725) (1,275) Economic Development Investment - Land & Serviced Units 0 0 0 1,000 1,000 0 0 2,000 Nature Restoration 386 386 49 386 0 0 0 0 386 Sub-Total 461 0 0 461 19 461 23,801 9,467 (3,055) (6,671) 24,003 Page 73 of 104
Page 74
PERTH AND KINROSS COUNCIL COMPOSITE CAPITAL PROGRAMME SUMMARY OF CAPITAL RESOURCES AND EXPENDITURE 2023/24 to 2027/28 APPENDIX II Revised Approved Proposed Revised Actual Projected Revised Revised Revised Revised Revised Budget Budget Budget Budget to Outturn Budget Budget Budget Budget Budget Adjustment Adjustment 29-Feb-24 Report 3 28-Feb-24 Report 4 Report 4 Report 4 Report 4 Report 4 Report 4 Report 4 2023/24 2023/24 2023/24 2023/24 2023/24 2023/24 2024/25 2025/26 2026/27 2027/28 TOTAL (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) City Centre Developments - Cultural Attractions Perth Museum 2,368 2,368 1,456 2,368 0 0 0 0 2,368 Perth Art Gallery 3,272 3,272 245 3,272 0 0 0 0 3,272 PH2O 0 0 0 500 2,000 25,000 62,500 90,000 Sub-Total 5,640 0 0 5,640 1,701 5,640 500 2,000 25,000 62,500 95,640 Community Planning Letham Community Wellbeing Hub 1,571 1,571 1,158 1,571 0 0 0 0 1,571 Third Party Contribution (Letham4All) (519) (519) (482) (519) 0 0 0 0 (519) Adapt Your Property - Vacant Town & City Centre Space 0 0 0 300 0 0 0 300 Community-Led Asset Transfers 0 0 0 75 0 0 0 75 Sub-Total 1,052 0 0 1,052 676 1,052 375 0 0 0 1,427 Community Greenspace Play Areas - Improvements Implementation Strategy 383 40 423 77 423 973 561 150 150 2,257 Third Party Contribution (10) (10) (6) (10) 0 0 0 0 (10) 3G Pitch, Blairgowrie 3 3 3 3 117 0 0 0 120 Settlement/Neighbourhood Parks 25 1 26 26 429 0 0 0 455 Countryside Sites 0 0 0 139 0 0 0 139 Community Greenspace Sites 0 0 1 0 306 450 898 894 2,548 Community Greenspace Bridges 27 11 38 9 38 100 0 0 0 138 Third Party Contribution 0 0 0 (13) 0 0 0 (13) Revenue Contribution 0 (11) (11) (11) 0 0 0 0 (11) Core Path Implementation 9 36 45 3 45 0 0 0 0 45 Third Party Contribution (21) (24) (45) (45) 0 0 0 0 (45) Premier Parks 8 20 28 28 0 0 0 0 28 Third Party Contribution 0 (14) (14) (14) 0 0 0 0 (14) Auchterarder Public Park 30 (4) 26 19 26 0 0 0 0 26 The Knock 0 0 0 0 0 0 0 0 Third Party Contribution (3) (3) (3) 0 0 0 0 (3) Kinnoull Hill 8 (8) 0 0 8 0 0 0 8 Third Party Contribution (4) (4) (7) (4) 0 0 0 0 (4) Cemetery Extensions 20 20 16 20 60 229 225 375 909 Sub-Total 475 0 47 522 115 522 2,119 1,240 1,273 1,419 6,573 Waste Strategy Recycling Improvement Fund 2,363 2,363 2,104 2,363 0 0 0 0 2,363 Scottish Government Grant (2,363) (2,363) 0 (2,363) 0 0 0 0 (2,363) Sub-Total 0 0 0 0 2,104 0 0 0 0 0 0 Support Services PC Replacement & IT Upgrades Hardware 16 16 7 16 15 15 14 14 74 Licenses 152 152 83 152 112 95 71 71 501 Sub-Total 168 0 0 168 90 168 127 110 85 85 575 Commercial Property Investment Programme North Muirton Industrial Estate - Site Servicing & Provision of Units 57 57 57 0 0 0 0 57 Broxden Business Park - Additional Infrastructure 10 10 10 0 0 0 0 10 Western Edge, Kinross - Site Servicing 5 5 5 0 0 0 0 5 Broxden Drainage Mitigation Works 638 638 742 638 866 0 0 0 1,504 Third Party Contribution (Scottish Water) (470) (470) (470) (658) 0 0 0 (1,128) Ruthvenfield Business Centre 1,372 (1,256) 116 9 116 1,256 0 0 0 1,372 North Muirton Drainage 17 17 17 0 0 0 0 17 Sub-Total 1,629 0 (1,256) 373 751 373 1,464 0 0 0 1,837 Page 74 of 104
Page 75
PERTH AND KINROSS COUNCIL COMPOSITE CAPITAL PROGRAMME SUMMARY OF CAPITAL RESOURCES AND EXPENDITURE 2023/24 to 2027/28 APPENDIX II Revised Approved Proposed Revised Actual Projected Revised Revised Revised Revised Revised Budget Budget Budget Budget to Outturn Budget Budget Budget Budget Budget Adjustment Adjustment 29-Feb-24 Report 3 28-Feb-24 Report 4 Report 4 Report 4 Report 4 Report 4 Report 4 Report 4 2023/24 2023/24 2023/24 2023/24 2023/24 2023/24 2024/25 2025/26 2026/27 2027/28 TOTAL (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) Prudential Borrowing Projects Wheeled Bin Replacement Programme - Domestic Bins 203 (58) 145 125 145 258 200 200 200 1,003 Wheeled Bin Replacement Programme - Commercial Bins 208 (37) 171 171 57 20 20 20 288 Recycling Containers, Oil Banks & Battery Banks Replacement Pro 205 205 102 205 120 105 105 105 640 Capital Receipts - Disposals (9) (9) (7) (9) 0 0 0 0 (9) Litter Bins 25 25 25 25 50 50 50 50 225 Smart Cities - Smart Waste 45 45 46 45 0 0 0 0 45 Third Party Contribution (ERDF) (24) (24) (24) 0 0 0 0 (24) Vehicle Replacement Programme 3,813 (113) 3,700 2,084 3,700 8,031 2,800 2,800 2,500 19,831 Capital Receipts - Vehicle Disposals (376) 70 (306) (188) (306) (500) (352) (352) (322) (1,832) Street Lighting Renewal - LED & Column Replacement 804 (30) 774 505 774 898 835 551 592 3,650 LED Traffic Signal Replacement 4 4 4 4 0 0 0 0 4 Almondbank Flood Protection Scheme 3 3 3 0 0 0 0 3 Land Purchase & Development (Hotel Development) 0 0 0 950 950 0 0 1,900 Sub Total 4,901 0 (168) 4,733 2,696 4,733 9,864 4,608 3,374 3,145 25,724 Housing Projects Gypsy Travellers Site Improvement Works 195 (184) 11 10 11 184 0 0 0 195 Additional Gypsy Traveller Site Improvement Works 225 (225) 0 0 225 0 0 0 225 New Gypsy Traveller Site 10 10 10 0 1,990 0 0 2,000 Sub Total 430 0 (409) 21 10 21 409 1,990 0 0 2,420 TOTAL: COMMUNITIES 102,371 (6,351) (22,582) 73,438 68,953 73,438 112,513 52,793 71,752 79,436 0 389,932 Health & Social Care Occupational Therapy Equipment 250 100 350 350 250 250 250 150 1,250 Technology Enabled Telecare 1,000 (350) 650 503 650 1,625 1,088 1,087 1,087 5,537 Moving & Handling Office Refurbishment 0 0 0 29 0 0 0 29 Software Licences 53 53 54 53 53 53 53 69 281 Developing Supported Tenancies 0 0 0 229 0 0 0 229 TOTAL: HEALTH & SOCIAL CARE 1,303 0 (250) 1,053 557 1,053 2,186 1,391 1,390 1,306 7,326 CORPORATE AND DEMOCRATIC SERVICES Property Services DDA Adaptation & Alteration Works Programme 410 (10) 400 278 400 210 200 200 200 1,210 Property Compliance Works Programme 902 (327) 575 398 575 727 650 650 650 3,252 Third Party Contribution (LAL) (25) (25) (25) (25) 0 0 0 0 (25) Capital Improvement Projects Programme 2,275 (238) 2,037 1,342 2,037 2,038 1,800 1,800 894 8,569 Pitlochry High School - Upgrade Programme 316 (136) 180 119 180 136 0 0 0 316 Friarton Depot - Waste Transfer Station 0 0 0 2,250 750 0 0 3,000 Community Campus Access Adaptations 0 0 0 25 0 0 0 25 Energy Efficiency Works - Various Properties 27 27 27 27 0 0 0 0 27 Revenue Contribution (Salix Reserve) (27) (27) (27) 0 0 0 0 (27) Decarbonisation - Prudential Borrowing Programme (PB) 700 (150) 550 281 550 1,450 0 0 0 2,000 Energy Conservation & Carbon Reduction Programme (PB) 138 138 67 138 150 150 150 150 738 Information Systems & Technology ICT Infrastructure Replacement and Upgrade Programme 2,416 2,416 1,879 2,416 6,745 3,077 3,076 7,757 23,071 Data & Analytics 600 600 205 600 806 946 720 708 3,780 Supporting Digital 750 (50) 700 99 700 963 927 928 1,185 4,703 Software Licences (Revenues & Benefits) 50 2 52 52 52 51 51 51 49 254 School Audio-Visual (AV) Equipment Replacement Programme 50 50 26 50 173 35 35 35 328 Mosaic - Swift Social Work System Replacement 800 150 950 690 950 1,355 147 143 628 3,223 Revenue Contribution 0 0 0 (50) (125) (125) 0 (300) TOTAL: CORPORATE AND DEMOCRATIC SERVICES 9,382 0 (759) 8,623 5,438 8,623 17,029 8,608 7,628 12,256 54,144 Page 75 of 104
Page 76
PERTH AND KINROSS COUNCIL COMPOSITE CAPITAL PROGRAMME SUMMARY OF CAPITAL RESOURCES AND EXPENDITURE 2023/24 to 2027/28 APPENDIX II Revised Approved Proposed Revised Actual Projected Revised Revised Revised Revised Revised Budget Budget Budget Budget to Outturn Budget Budget Budget Budget Budget Adjustment Adjustment 29-Feb-24 Report 3 28-Feb-24 Report 4 Report 4 Report 4 Report 4 Report 4 Report 4 Report 4 2023/24 2023/24 2023/24 2023/24 2023/24 2023/24 2024/25 2025/26 2026/27 2027/28 TOTAL (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) TOTAL COMPOSITE NET EXPENDITURE 169,800 (6,351) (26,892) 136,557 114,604 136,557 198,184 89,686 102,674 115,221 642,322 (NET OF GRANTS, REVENUE AND 3RD PARTY CONTRIBUTIONS, AND RING FENCED RECEIPTS) CAPITAL RECEIPTS General Capital Grant - Scottish Government (22,699) (22,699) (20,179) (22,699) (24,078) (12,639) (18,008) (12,150) (89,574) Developer Contributions (2,847) (2,847) (2,847) (2,300) (2,367) (2,600) (2,600) (12,714) General Fund - Capital Receipts/Disposal (504) (400) 103 (801) (291) (801) (419) (656) (250) (250) (2,376) Commercial Property - Capital Receipts/Disposal 0 0 0 0 0 (712) (430) 0 (1,088) (2,230) Total: Capital Receipts (26,050) (400) 103 (26,347) (20,470) (26,347) (27,509) (16,092) (20,858) (16,088) (106,894) Annual Composite Borrowing Requirement 143,750 (6,751) (26,789) 110,210 94,134 110,210 170,675 73,594 81,816 99,133 535,428 CAPITAL RECEIPTS BROUGHT FORWARD (2,245) 0 (2,245) (2,245) (2,245) (1,872) (1,120) (1,550) (1,550) (2,245) CAPITAL RECEIPTS CARRIED FORWARD 616 1,256 1,872 1,494 1,872 1,120 1,550 1,550 2,638 2,638 TOTAL NET COMPOSITE BORROWING REQUIREMENT142,121 (6,751) (25,533) 109,837 93,383 109,837 169,923 74,024 81,816 100,221 535,821 Page 76 of 104
Page 77
EDUCATION AND CHILDREN'S SERVICES Project Project Description MIS - SEEMIS Licensing Licencing of Schools Management Information System Blairgowrie Recreation Centre - Replacement Replacement of the Recreation Centre in Blairgowrie Investment in the Learning Estate Investment to upgrade the infrastructure and environment of our existing school estate Free School Meal Expansion Programme Upgrading kitchen and dining facilities to provide the enhanced Free School Meals programme Methven Primary School Refurbishment Upgrade of Methven Primary School facilities Breadalbane Academy, Aberfeldy - 3G Pitch Additional investment required to upgrade 2G to 3G Kirkmichael Primary School Upgrades Upgrade of Kirkmichael Primary School facilities Early Learning & Childcare - Letham Primary School Upgrade Project 1140 hrs project plus upgrade of primary school infrastructure - Completed - Oakbank Primary School Upgrade Project 1140 hrs project - Completed - Rattray Primary School Upgrade Project 1140 hrs project plus upgrade of primary school infrastructure - Completed New Primary School at Bertha Park Site New primary school located at Bertha Park Riverside Primary New School Replacement of North Muirton and Balhousie primary schools Technology Upgrades Upgrade to practical teaching environment within the existing school estate Perth Academy - Refurbishment Investment to upgrade the infrastructure and environment of the Perth Academy including structural work to sports block, lighting upgrades, classroom upgrades and science block cladding Perth Grammar School - Upgrade Programme Phase 3 Investment to upgrade the infrastructure and environment of the Perth Grammar School including structural work to assembly hall, AV and WiFi upgrades, classroom refurbishment and door upgrades Perth High School - Internal Services & Refurbishment Necessary works to the infrastructure and environment of the current Perth High School Perth High School - New School Investment Replacement of the existing Perth High School Harris Academy/Invergowrie - Extension Extension and reconfiguration of existing space at Harris Academy in Dundee for continuation of access for pupils based in Invergowrie COMMUNITIES Project Project Description Traffic & Road Safety Road Safety Initiatives (20mph Zones etc.) A programme of works to improve road safety Additional Road Safety - Pedestrian Crossings A programme of works to provide pedestrian crossing facilities Road Safety Improvement Fund works Provision of safety barriers on routes where motor cycling is common Schools Road Safety Measures A programme of works to improve road safety in the vicinity of schools 20mph Signage Programme - Schools A programme of works to improve road safety in the vicinity of schools 20mph Signage Programme A programme of works to introduce 20mph speed limits. Cycling Walking & Safer Routes (CWSR) A programme of works providing infrastructure for cycling, walking and safer routes Car Parking Investment Construction of new car park in Auchterarder Car Parking Investment - Pitlochry Purchase of land and construction of a public car park Strathmore Cycle Network Contribution towards a shared use path between Coupar Angus and Blairgowrie Asset Management - Roads & Lighting Page 77 of 104
Page 78
Structural Maintenance Road maintenance to extend the life of roads, including predominately road resurfacing, surface dressings, installing new drainage infrastructure and repairs to and replacement of defective embankments and retaining walls Traffic Signal Renewals - Upgrading A programme of works to upgrade existing traffic signal infrastructure Footways Replacement of existing deteriorated footway surfaces Investment in Local Footpaths A programme of works to improve and provide local footpaths Road Safety Barriers Renewal of existing barriers where unrecoverable damage has occurred and renewal of barriers where timber posts have been used in construction Bridge Refurbishment Programme Used to appoint specialist external inspection teams and consultants to carry out specialist access bridge inspections and assessments Dalhenzean Culvert Culvert replacement project (later years) Dunkeld Golf Course Culvert replacement project (later years) Vehicular Bridge Parapets Programme - Assess & Upgrade Assessment and Upgrading of Vehicle Parapets Programme Old Perth Bridge - Strengthening Carry out works recommended by the 2018 Bridge Assessment study, including a range of assessment, investigation, strengthening and improvement works Perth Queens Bridge - Strengthening Carry out works recommended by the 2018 Bridge Assessment study, including a range of assessment, investigation, strengthening and improvement works Garry Viaduct Replacement of Bearings and Parapets; including strengthening of deck for bearing replacement jacking up, and to cater for increased parapet vehicular deterrent capacity Culteuchar Culvert Replace existing temporary steel bridge (on hire) with culvert Glendevon Bridge Major bridge repair works required due to severe river scour damage (now complete) Tullyfergus Bridge Installation of scour protection to protect existing bridge abutments (later years) A9/A85 Road Junction Improvements New infrastructure including a new A9 overbridge, a bridge over the River Almond and road linking the A85 to Inveralmond and Bertha Park (Phase 1 of Perth Transport Futures Project) - complete Cross Tay Link Road (CTLR) New road and major structure over the River Tay, linking the A9 north of Inveralmond and the A94 north of Scone (Phase 2 of Perth Transport Futures Project). A977 Upgrades A programme of works to improve road safety along the A977. Broich Road, Crieff - Road Realignment & Safety Measures Complete Community Transport Iniaitives Funded by the Community Bus Fund - expenditure to improve connectivity and integrate transport modes,or to support innovative transport solutions in areas of rural deprivation Almondbank Flood Protection Scheme Substantially complete Perth Flood Protection Scheme (Pump Replacement) Complete Perth Flood Protection Scheme (South Inch Culvert Reinstatement) Ground investigation and monitoring then design project to refurbish existing culvert Comrie Flood Protection Scheme Design and construction of a scheme to reduce the risk of flooding in Comrie Milnathort Flood Protection Scheme Design and construction of a scheme to reduce the risk of flooding in Milnathort Asset Management - Bridges Improvement Schemes Rural Flood Protection Schemes Public Transport Page 78 of 104
Page 79
South Kinross Flood Protection Scheme Design and construction of a scheme to reduce the risk of flooding in South Kinross Scone Flood Protection Scheme Design and construction of a scheme to reduce the risk of flooding in Scone Coastal Change Adaptation Design and construct projects to deal with incidents of coastal erosion Mill Street Environmental Improvements Potential compensation payments associated with claims against compulsory land acquisition to enable delivery of environmental improvements to stimulate and support development and investment Perth, Place, People Design and development of sustainable transport corridors to improve access to and from Perth and enable additional development and improvement within Perth city centre Perth City Centre Golden Route (Rail Station) Design and development of improvements to access, signage and animation from rail and bus station to Perth city centre to complement improvements to integration of transport City Greening Improvements to support enhancement of retail trading environment and residential areas and enhanced use of space for markets, events and alfresco use Perth & Kinross Lighting Action Plan Architectural and creative lighting to enhance city and towns appearance, reduce energy cost and increase safety at nighttime to increase dwell time, support the hospitality sector, events and grow the evening economy Creative Exchange (former St. John's Primary School) Repurposing old school to offer space to creative industry businesses and create the Famous Grouse Idea Centre, a space to support business innovation. Complete Town Centre - Regeneration & Economic Improvements Complete Local Full Fibre Network Provision of gigabit fibre connectivity to Council's buildings to unlock gigabit connectivity for surrounding communities. Completed Low Carbon Transport & Active Travel Hub - Broxden EV Chargers Provision of fast EV chargers combined with solar power generation and battery storage at Broxden Park & Ride - Near completion Perth Eco-Innovation Park at Perth West Provision of enabling infrastructure (access road, A9 underpass and unit platforms) to develop 25ha of employment land supporting clean growth, business innovation and jobs - Phase 1 (11ha) - In development Coupar Angus - Strathmore Community Hub Complete Nature Restoration Protection and restoration of biodiversity focusing on over- exploitation of the natural environment and addressing its consequences; habitat loss and fragmentation; and invasive non- native species - 22/23 completed - 23/24 started Perth Museum Refurbishment of Perth City Hall to create new museum spaces and cafe. Main construction phase complete and install/fit out on schedule for planned opening spring 2024 Perth Art Gallery Refurbishment of temporary galleries - scheduled for completion November 2023 Collections Centre Project removed from programme PH2O Replacement of Perth Leisure Pool and Dewars Ice Rink. On hold pending outcome of Leisure and Culture Assets Review Letham Community Wellbeing Hub Refurbishment of Letham Wellbeing Hub to offer a range of services to the local community managed by Letham4All - scheduled for completion end 2023 City Centre Developments - Cultural Attractions Community Planning Other Planning Projects Perth & Kinross Place-making Page 79 of 104
Page 80
Play Areas - Improvements Implementation Strategy Regular refurbishment of 146 play areas based on approx. 6-8 per year. Involves community engagement and often co-funding and design of the sites 3G Pitch, Blairgowrie Two phase community led project to provide a new full sized 3G football pitch and pavilion Settlement/Neighbourhood Parks Refurbishment of neighbourhood parks working in partnership with communities to improve, update and renew worn out or obsolete infrastructure Countryside Sites Refurbishment of more natural parks and open spaces Community Greenspace Sites Main fund for all Community Greenspace Sites which is drawn down to support the overall capital programme of refurbishments and upgrades Community Greenspace Bridges Refurbishment programme for all bridges on Community Greenspace sites Core Path Implementation Holding budget for Crieff Comrie Core path development mainly funded through Sustrans Alyth Environmental Improvements Town centre upgrade including community led refurbishment of the burnside - complete Premier Parks Small budget to facilitate refurbishment of former Premier Park upgrades Auchterarder Public Park Major play area upgrade co-funded and designed with the community The Knock Complete Kinnoull Hill Complete Cemetery Extensions Funding to allow the extension of existing or development of new cemeteries to address the pressure for burial space Recycling Improvement Fund External Scottish Government funding (Recycling Improvement Fund) to roll out 4th bin to householders for recycling Hardware Funding of additional or bespoke IT Hardware for Communities Staff Licenses Funding of software contracts North Muirton Industrial Estate - Site Servicing & Provision of Units Only road adoption works remaining Broxden Business Park - Additional Infrastructure Only road adoption works remaining Western Edge, Kinross - Site Servicing Only road adoption works remaining Additional Infrastructure Investment - Broxden Complete Broxden Drainage Mitigation Works Drainage/pumping station works underway and subject to agreement/contribution from Scottish Water Ruthvenfield Business Centre Works on redevelopment in progress North Muirton Drainage Drainage/pumping station underway North Muirton Industrial Estate Expansion Land - Servicing Complete Wheeled Bin Replacement Programme - Domestic Bins Replacement of damaged and end of life wheeled bins for households. Also suppling bins for new properties Wheeled Bin Replacement Programme - Commercial Bins Replacement of damaged and end of life wheeled bins for commercial customers. Also suppling bins for new customers and changes to collection contracts Recycling Containers, Oil Banks & Battery Banks Replacement Programme Replacement of damaged and end of life oil and battery banks Litter Bins Replacement of damaged and end of life litter bins and/or for general supply of litter bins where required. Prudential Borrowing Projects Community Greenspace Waste Strategy Support Services - PC Replacement & IT Upgrades Commercial Property Investment Programme Page 80 of 104
Page 81
Smart Cities - Smart Waste Programme now complete - included introduction of In Cab system for refuse vehicles, fill level sensors on city centre litter bins Vehicle Replacement Programme Fleet vehicle replacement programme Crematorium - Abatement Works Complete Street Lighting Renewal - LED & Column Replacement Street Lighting LED conversion and column replacement programme Smart Cities - Intelligent Street Lighting Complete LED Traffic Signal Replacement Complete Almondbank Flood Protection Scheme Under Rural Flood Land Purchase & Development (Hotel Development) Development agreement secured and release of grant for heritage subject to progression through planning and cost evidence Technology & Innovation Incubator Units Complete Gypsy Travellers Site Improvement Works Programme of works for improvements on Gypsy Traveller sites at Bobbin Mill and Double Dykes Additional Gypsy Traveller Site Improvement Works Additional funding to support improvements works programme on Gypsy Traveller sites Gypsy Traveller Site Community Improvement Works Funding from Gypsy Traveller Scottish Government Funding Bid for replacement of chalets at Double Dykes New Gypsy Traveller Site Feasibility Study for Gypsy Traveller Transient Site HEALTH & SOCIAL CARE Project Project Description Occupational Therapy Equipment Supply and install of occupational therapy equipment Technology Enabled Telecare Replacement of existing Community Alarm devices from analogue to digital units prior to UK switch-off of analogue, as well as ongoing rolling replacment programme. Moving & Handling Office Refurbishment Refurbishment of space following relocation of the moving and handling office Software Licences Licences for various social care systems Developing Supported Tenancies Cntribution towards health resettlemetn of Community Care clients to be supported in the community CORPORATE AND DEMOCRATIC SERVICES Project Project Description DDA Adaptation & Alteration Works Programme To provide unhindered accessibility to all Council Buildings - e.g. Ramps/Lifts/Door Access/Accessible Toilets and Changing Areas Property Compliance Works Programme To ensure compliance with current and changing legislation including - New Fire Alarms; Lighting; Wiring; Fire Protection Works; Gas pipework within buildings and Roof Restraint safety systems Capital Improvement Projects Programme Roof Upgrades; Full internal refurbishment works; New Heating Systems; Boilers and pipework; Structural Upgrades; Small extensions; New Windows/Doors; New Fencing; New Cladding Pitlochry High School - Upgrade Programme Upgrades to Mechanical and Electrical Infrastructure, including rewiring, heating and controls systems, replacement lighting and consequential building works such as new ceilings, painting and flooring Friarton Depot - Waste Transfer Station Energy Efficiency Works - Various Properties Focusing on a spend to save with projects aiming to reduce energy cost across the property estate Housing Projects Property Services Page 81 of 104
Page 82
Decarbonisation - Prudential Borrowing Programme (PB) This budget will support PKCs path to NetZero and focus primarily on the de-carbonisation of heat and replacing inefficient direct emissions heat sources Energy Conservation & Carbon Reduction Programme (PB) This budget is focused on works to reduce PKC energy consumption and help achieve annual KPI energy reduction of 3% ICT Infrastructure & Replacement and Upgrade Programme This Programme delivers the IT / digital environment, digital resources and systems required by staff and young people. The programme maintains, supports and develops computers; networks; telephony; Microsoft systems; connectivity and equipment; datacentres; servers; file storage and back up; security systems and video conferencing Data & Analytics Delivers the governance, tools, technologies and organisation- wide skills required for optimising value from Council data, driving informed decision making around resources, priorities and service delivery targets Supporting Digital Develops the capabilities we need to be an innovative digital organisation. Including developing the Council’s corporate employee (mobile working) and customer (online services) platforms, to create new digital products and services; investment in tools such as Microsoft; resourcing innovation and building digital skills, insight and expertise Software Licences (Revenues & Benefits) NAC Live system licensing for Revenues & Benefits team School Audio-Visual (AV) Equipment Replacement Programme Ensures all Perth and Kinross classrooms have equitable access to audio visual panels and the digital skills to exploit these resources for learning and teaching Mosaic - Swift Social Work System Replacement Purchase and Development of a new Social Work system to replace SWIFT Information Systems & Technology Page 82 of 104
Page 83
APPENDIX III Approved Proposed Revised Actual Projected Revised Revised Revised Revised Revised Budget Budget Budget to Outturn Budget Budget Budget Budget Budget Adjustment 29-Feb-24 Report 3 Report 4 Report 4 Report 4 Report 4 Report 4 Report 4 Report 4 Report 4 2023/24 2023/24 2023/24 2023/24 2023/24 2024/25 2025/26 2026/27 2027/28 TOTAL £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 Council House New Build Programme Glebe, Scone - 65 Units 17 17 1 17 0 0 0 0 17 Council Tax (Second Income) 0 0 0 0 0 0 0 0 Scottish Government Subsidy 0 0 0 0 0 0 0 0 17 0 17 1 17 0 0 0 0 17 Huntingtower, Perth - 70 Units 1 1 1 0 0 0 0 1 Council Tax (Second Income) 0 0 0 0 0 0 0 0 Scottish Government Subsidy 0 0 0 0 0 0 0 0 1 0 1 0 1 0 0 0 0 1 Fairfield, Perth 251 251 195 251 0 0 0 0 251 Council Tax (Second Income) 0 0 0 0 0 0 0 0 Scottish Government Subsidy 0 0 0 0 0 0 0 0 251 0 251 195 251 0 0 0 0 251 Lynedoch Road, Methven - Phase 1 735 735 670 735 0 0 0 0 735 Council Tax (Second Income) 0 0 0 0 0 0 0 0 Scottish Government Subsidy 0 0 0 0 0 0 0 0 735 0 735 670 735 0 0 0 0 735 Lynedoch Road, Methven - Phase 2 0 1,334 1,334 1,106 1,334 1,172 0 0 0 2,506 Council Tax (Second Income) 0 0 0 (240) 0 0 0 (240) Scottish Government Subsidy 0 (1,243) (1,243) (1,243) 0 0 0 0 (1,243) 0 91 91 1,106 91 932 0 0 0 1,023 Future Developments 0 0 0 5,091 6,014 6,014 10,292 27,411 Council Tax (Second Income) 0 0 0 0 0 0 0 0 Scottish Government Subsidy 0 0 0 0 0 0 0 0 0 0 0 0 0 5,091 6,014 6,014 10,292 27,411 Total Council House New Build 1,004 91 1,095 1,972 1,095 6,023 6,014 6,014 10,292 29,438 Increase in Council House Stock Council House Buy-Backs 5,067 1,867 6,934 6,772 6,934 4,000 4,000 4,000 4,000 22,934 Scottish Government Subsidy (1,050) (630) (1,680) (1,680) 0 0 0 0 (1,680) 4,017 1,237 5,254 6,772 5,254 4,000 4,000 4,000 4,000 21,254 Lock-ups and Garage Sites 0 0 0 50 0 0 0 50 Standard Delivery Plan Heating Upgrade Contract Works 818 215 1,033 375 1,033 1,105 1,320 811 0 4,269 Rewiring, Infrastructure & Property Refurbishment 1,515 (850) 665 627 665 1,686 850 0 0 3,201 Triple Glazing 3,866 1,200 5,066 4,479 5,066 300 0 0 0 5,366 - less Third Party Contribution 0 0 (1) 0 0 0 0 0 0 Controlled Door Entry 0 17 17 17 11 0 0 0 28 Kitchen Modernisation Programme 374 374 270 374 1,504 2,025 0 0 3,903 Bathroom Modernisation Programme 1,436 1,436 1,292 1,436 0 0 0 0 1,436 External Fabric 958 35 993 759 993 0 259 0 0 1,252 - less Third Party Contribution 0 (35) (35) (35) (35) 0 0 0 0 (35) Energy Efficiency 940 940 788 940 388 0 0 0 1,328 Multi Storey Flats 428 428 300 428 1,815 0 0 0 2,243 Environmental Improvements 899 150 1,049 775 1,049 0 0 0 0 1,049 Fire Precaution Measures 399 (224) 175 153 175 224 0 0 0 399 Sound Insulation 289 (289) 0 0 389 42 0 0 431 Structural 478 (463) 15 15 250 985 0 0 1,250 SHQS Future Developments 0 0 0 0 4,066 4,808 5,553 14,427 Total Standard Delivery Plan 12,400 (244) 12,156 9,782 12,156 7,672 9,547 5,619 5,553 40,547 HRA CAPITAL INVESTMENT PROGRAMME SUMMARY OF CAPITAL RESOURCES AND EXPENDITURE 2023/24 to 2027/28 PERTH AND KINROSS COUNCIL 6 Page 83 of 104
Page 84
APPENDIX III Approved Proposed Revised Actual Projected Revised Revised Revised Revised Revised Budget Budget Budget to Outturn Budget Budget Budget Budget Budget Adjustment 29-Feb-24 Report 3 Report 4 Report 4 Report 4 Report 4 Report 4 Report 4 Report 4 Report 4 2023/24 2023/24 2023/24 2023/24 2023/24 2024/25 2025/26 2026/27 2027/28 TOTAL £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 Other Investment in Council House Stock Total Major Adaptations to Council House Stock 82 82 60 82 22 0 0 0 104 Anchor House, Rannoch Road, Perth - Conversion (5 Unit 87 (60) 27 16 27 60 0 0 0 87 149-151 Dunkeld Road, Perth 277 277 107 277 0 0 0 0 277 111 Rannoch Road, Perth (Former Driving Test Centre) 8 8 8 0 0 0 0 8 St.Catherine's Square Redevelopment 16 (16) 0 0 3,393 0 0 0 3,393 Shops & Offices 239 (239) 0 0 50 239 0 0 289 Greyfriars and Satellite Sites 34 (32) 2 2 2 50 32 0 0 84 Sheltered Housing 11 11 12 11 0 0 0 0 11 Double Dykes Chalet Replacement 0 71 71 20 71 0 0 0 0 71 - Scottish Government Grant 0 (71) (71) (71) 0 0 0 0 (71) General Capital Works 120 120 112 120 0 0 0 0 120 Upgrade and Replacements to Lifts Programme 137 (116) 21 21 116 0 0 0 137 ICT Expenditure 131 (110) 21 8 21 50 110 0 0 181 Mortgage to Rent 175 175 175 50 0 0 0 225 Total Other Investment in Council House Stock 1,317 (573) 744 337 744 3,791 381 0 0 4,916 Total Net Expenditure 18,738 511 19,249 18,863 19,249 21,536 19,942 15,633 19,845 96,205 Income CAPITAL RECEIPTS (8) (3) (11) (11) (11) 0 0 0 0 (11) CFCR (2,055) (280) (2,335) (2,335) (1,833) (2,078) (2,004) (2,125) (10,375) TOTAL BORROWING REQUIREMENT 16,675 228 16,903 18,852 16,903 19,703 17,864 13,629 17,720 85,819 Page 84 of 104
Page 85
SIGNIFICANT CAPITAL PROJECTS PROGRESS UPDATE APPENDIX IV Project Title Total Gross Budget Third Party Funding (£'000) Total Net Budget (£'000) Projected Outturn (£'000) Completion Date Contract Awarded On Site Status Change Since Last Report Additional Commentary Blairgowrie Recreation Centre - Replacement 36,000 0 36,000 36,000 Phase 1 completion date December 2024, phase 2 Easter 2025. Yes Yes On track No Works are progressing well on-site. New Primary School at Bertha Park Site 24,000 0 24,000 24,000 Summer 2028 No No Rephased pending review No Rephasing of the project to take account of the projections for the number of catchment pupils. Riverside Primary New School 19,899 0 19,899 19,899 June 2023 Yes Yes Complete Yes. Complete. Official opening 26 March 2024. Perth High School - New School Investment 80,200 0 80,200 80,200 Summer 2026 - school building curently scheduled to open summer 2025 Yes Yes On track No Works are progressing on-site. Harris Academy/Invergowrie Extension 5,200 0 5,200 5,200 Late 2023 Yes Yes On track No Main extension complete, reconfiguration works still to be undertaken. Cross Tay Link Road (CTLR) 150,500 40,000 110,500 110,500 Spring 2025 Yes Yes On programme No Works progessing and remain on target for completion in Spring 2025 as per the current programme. Bridge deck works commenced in March 2024 with the first deck segment concrete pours. Now that this is underway, progress will be closely monitored to inform a detailed analysis of available contingency and compensation events which will give more certainty over the cost forecasts (which are currently within budget). Comrie Flood Protection Scheme 39,544 0 39,544 39,544 Summer 2026 No No Advance works complete; Main works to be re-tendered April 2024 Yes Main works tender received in June 2023 but cost significantly higher than anticipated; Finance have since received confirmation from Scottish Government that the capital grant will be increased to match the revised value (equal to 80% of the project cost at tender stage) and the Council's capital plan (for the remaining 20%) was approved at Council Committee on 28/2/24. However, the June 2023 tender has timed out. Therefore, the main works will be re-tendered in April 2024 with a tentative start date of August 2024, subject to tender value remaining within budget. The works programme is currently being reviewed with a duration of up to 2 years (August 2026).Perth Eco Innovation Park* 32,817 11,275 21,542 21,542 Not currently programmed No No Preliminary design works completed Yes Procurement of the design consultant has progressed as far as possible, but is put on hold pending full funding package being in place. Discussions between PKC and the developers on the required private sector contribution levels are on-going to secure an indicative £13m. An Outline Business Case has been submitted to secure £5m from the Tay Cities Deal which would then be subject to approval of Full Business Case. Further evidence is being gathered to ensure that the identified £5m from sale receipts are in line with market trends. The above £23m contributions would complement the £10m approved by the Council to meet the project total estimated costs of £33m. Perth Museum 27,232 10,300 16,932 16,932 Spring 2024 Yes Yes On track No Project complete and opened to public 30 March PH2O 90,000 0 90,000 90,000 Not currently programmed No No Outline Business Case reported to Council 23 February 2023, and project on hold pending review. Yes Leisure assets review recommendations considered by Council 22 Jan 2024 with instruction to re-scope PH20 and revert to Council Aug '24 with re-costed option. * Third Party Funding excludes Developer Contributions and receipts to be received in future years beyond the current 5-year programme. 6 Page 85 of 104
Page 86
Page 86 of 104
Page 87
PERTH & KINROSS COUNCIL Finance & Resources Committee 24 April 2024 TREASURY ACTIVITY AND COMPLIANCE REPORT 2023/24 – 6 Months to 31 March 2024 Report by Strategic Lead, Finance & Business Support (Report No. 24/132) 1. PURPOSE 1.1 The purpose of this report is to update the Committee on Treasury Activity for the period 1 October 2023 to 31 March 2024 and to report on compliance with the Council’s Treasury Management Policy Statement (TMPS), Investment Strategy and Prudential Indicators. 2. RECOMMENDATION 2.1 It is recommended that the Committee: (i) note the content of this report. 3. STRUCTURE OF REPORT 3.1 This report is structured over the following sections: • Section 4: Economic Background • Section 5: Treasury Activity • Section 6: Compliance • Section 7: Investment Strategy Compliance and Performance • Section 8: Prudential Indicators • Section 9: Conclusion 4. ECONOMIC BACKGROUND 4.1 The Bank of England’s Monetary Policy Committee (MPC) maintained the UK Bank Base Rate at 5.25% over the period despite a steady reduction in CPI Inflation. Economic forecasts are that there will be reductions in the Base Rate later in the year. UK inflation fell from 6.7% in September 2023 to 3.2% in March 2024, which was the lowest rate since September 2021, primarily due to a slowdown in food inflation and energy costs. Additionally, the core inflation rate, which excludes volatile items such as energy and food costs, also dropped. 4.2 UK GDP (Gross Domestic Product) reduced by 0.3% at the end of 2023, resulting in the UK entering a mild recession, the first time since the Covid-19 outbreak in 2020. More recent economic data suggests the UK has returned to growth since the start of 2024. 7 Page 87 of 104
Page 88
4.3 Internationally, the Eurozone experienced a contraction in growth of 0.1% in the 3 months to 30 September 2023 and with no GDP growth in the quarter to 31 December. CPI Inflation continued to fall whilst interest rates were maintained over the period at 4.5%. In the US, GDP fluctuated over the period but increased overall, whilst inflation decreased over the period. The US interest rate remained in the range of 5.25% to 5.50% in March 2024. 4.4 The Public Works Loan Board’s (PWLB) certainty fixed interest rates for the 6 months to 31 March 2024, which are based on yields on UK gilts, are shown in the graph at Appendix I. As a result of mixed economic data, borrowing rates showed continuing volatility over the period, however the rates were lower by the end of the period in all duration as inflation continued to ease. 5. TREASURY ACTIVITY 5.1 A summary of the Council’s treasury position and transactions is shown at Appendix II. The main activities are detailed below. 5.2 During the period there were two new PWLB fixed maturity loans borrowed. These were borrowed for medium term durations due to their relatively lower rates, and with the expectation that longer term rates will fall over this period. Details of the loans borrowed are as follows: • In December 2023, £20 million was borrowed for 6.5 years at 4.34%. This was borrowed under the PWLB’s discounted HRA rate. • In March 2024, £10 million was borrowed for 4 years at 4.84%. 5.3 There was no repayment of maturing PWLB loans, however the balance of £140,000 on the Empty Homes Loan from the Scottish Government was repaid in March. Therefore, the Council’s total long-term debt increased from £598.34 million at an average interest rate of 2.55% to £628.2 million at an average interest rate of 2.64% as at 31 March 2024. There was one short- term market loan borrowed in the period to manage cashflow, with £10 million borrowed for 7 days at 5.35% in November 2023. There were no such loans outstanding as at 31 March 2024. 5.4 Common Good and Charitable Fund balances held on fixed deposit with the Loans Fund increased from £2.294 million, with an average interest rate at 3.95%, at 30 September 2023 to £2.415 million at an average rate of 4.81% at the end of the current period. Funds held from associated bodies and organisations decreased from £3.130 million to £2.248 million over the period, in line with their own cash flow requirements, whilst the average rate paid on these funds decreased from 4.69% to 4.58% in line with the rates applicable on individual loans depending on the balance held. 5.5 Short term cashflow surpluses are invested in a mixture of fixed term deposits, instant access accounts and money market funds. All investments were made in accordance with the approved Investment Strategy and Permitted Investments. Page 88 of 104
Page 89
Fixed Term Deposits 5.6 Cashflow surpluses which arise during the year, and which are not immediately required, are generally invested in fixed term deposits for periods of up to 12 months, or up to 3 years where forecast cashflow requirements allow. 5.7 There were 12 fixed rate deposits made in the 6 months to 31 March 2024 (totalling £62.5 million) at an average amount of £5.2 million and an average interest rate of 6.53% for an average term of 27 days. In comparison to the previous quarter to the end of September, fixed deposit activity in the current period increased, however due to increased expenditure on the Capital programme and cash requirements, the lending duration of investments was shorter. The deposits were mainly to other Local Authorities and for very short durations covering the financial year end when borrowing demand was high. The average rate on investments in the current period also increased from 5.73% to 6.53%. The fixed deposits undertaken in the period will generate £278,696 in interest at their maturity. Investments for Daily Cashflow Requirements 5.8 Cashflow surpluses which are required for more immediate needs were invested in the Council’s instant access and Money Market Funds. The investment transactions in the period can be summarised as follows: • The daily average amount of such funds increased from £6.47 million in the previous quarter to £6.95 million at the end of the current period. • The average interest rate achieved on these accounts over the period increased from 5.14% to 5.32%. • Money Market Funds, which operate on instant access terms, were used extensively over the period. The average amount invested increased from £8.1 million in the previous quarter to £9.4 million in the current period, whilst the average interest rate increased from 5.16% to 5.34%. • The increase in activity on these accounts reflected the need to keep an increased level of funds for more immediate cashflow purposes over the period. • Interest generated on these investments over the 6 month period amounted to £391,776. 5.9 The total amount of investments outstanding as at 31 March 2024 was £65.533 million compared to £133.133 million at the end of September 2024. The overall average rate of interest on the investments outstanding increased from 5.34% to 6.48% over this period. This reflects increases in the available rates over the period. 5.10 Total income generated on investments undertaken during the period will total £670,472 at maturity (£1,361,425 in the quarter ended 30 September 2023). This measure reflects the total return on the investment activity undertaken in the period and is lower in comparison to the previous quarter as fixed term investments undertaken were for shorter durations, despite being at higher Page 89 of 104
Page 90
interest rates and the current period being longer (6 months) in comparison to the previous quarter (3 months). 5.11 All of the above investment activities are consistent with the Council’s current investment strategy and cashflow requirements. 6. COMPLIANCE 6.1 For the period ending 31 March 2024, there were no breaches in compliance with the Council’s approved Treasury Management Policy Statement, Treasury Management Practices (TMP’s) or lending limits as detailed in TMP 4 (Approved Instruments, Methods & Techniques). 6.2 Appendix III shows the list of approved counterparties, based on the Council’s current lending policy, as at March 2024. 6.3 For the period ending 31 March 2024 the average closing cleared bank balance was £19,274.59 in credit. This reflects the application of the Council’s “sweep facility” operated by the bank, with any credit balance in excess of £35,000 being “swept up” overnight to the Council’s instant access account. 7. INVESTMENT STRATEGY COMPLIANCE AND PERFORMANCE 7.1 The Treasury Investment Strategy for 2023/24 was approved by the Council at its meeting on 10 May 2023 (report 23/135 refers). 7.2 In the current period, the level of the Council’s investments peaked at £151.575 million on 18 October 2023 and reduced to £65.533 million by the end of March 2024. The average daily investment balance over the period was £102.743 million, which decreased from an average of £155.355 million in the previous quarter and from £221.754 million in the same period of last year. This highlights the steady reduction in investment balances over the last year as funds are applied in financing the approved Capital programme. 7.3 The Investment Strategy was applied in full over the period, with liquidity being maintained using instant access accounts and Money Market Funds as detailed in paragraph 5.8 above. There were no other risks identified in the period. 7.4 The Investment Strategy also incorporates investments held by the Common Good Funds. All such investments during the period were with the Council’s Loans Fund. The only Council funds held by external fund managers relate to Council administered Charitable Trusts and are, therefore, not covered by this Investment Strategy. 7.5 The budgeted income in 2023/24 for Commercial Property investments is £1,826,501 whilst the latest projection is £1,821,000. There were no new property investments entered into during the current period. Page 90 of 104
Page 91
8. PRUDENTIAL INDICATORS 8.1 Prudential Indicators for 2023/24 to 2027/28 were approved by the Council at its meeting on 10 May 2023 (report 23/135 refers) as part of the Annual Treasury & Investment Strategy report. 8.2 The latest estimates of the Prudential Indicators are shown in Appendix IV and are based on the Council’s revised Capital Budget being considered at today’s Committee meeting. These show that the Council adhered to all Prudential Limits in the period. However, the annual Loan Charges relative to the Net Revenue stream and the Capital Financing (Borrowing) Requirement show an increasing trend, which reflects the latest estimates for the Capital Programme and interest rate forecasts over the period. 9. CONCLUSION 9.1 The Bank of England’s MPC left Bank Base Rate at 5.25% over the period to 31 March 2024. With inflation continuing to fall it is expected that the MPC will reduce the Base rate in the coming months. 9.2 Public Works Loans Board (PWLB) borrowing rates continued to be volatile over the period due to inflationary expectations and economic growth prospects, however the rates did decrease in all durations. There were two new PWLB fixed maturity loans borrowed in the period totalling £30 million. 9.3 Investment activity in the period consisted of an increased level of fixed term deposits but for shorter durations, whilst instant access and Money Market Funds were used to meet day-to-day cashflow requirement. Investment rates increased over the period, however, the total level of investments outstanding reduced. 9.4 The Council adhered to its Investment Strategy and policies throughout the period, with no breaches in compliance. The Council’s Prudential Indicators were also adhered to throughout the period. Author(s) Name Designation Contact Details John Jennings Senior Accountant CHXFinance@pkc.gov.uk Approved Name Designation Date Scott Walker Chief Finance Officer & Strategic Lead – Finance & Business Support 4 April 2024 Page 91 of 104
Page 92
ANNEX 1. IMPLICATIONS, ASSESSMENTS, CONSULTATION AND COMMUNICATION Strategic Implications Yes / None Community Plan / Single Outcome Agreement None Corporate Plan Yes Resource Implications Financial Yes Workforce None Asset Management (land, property, IST) None Assessments Equality Impact Assessment Yes Strategic Environmental Assessment Yes Sustainability (community, economic, environmental) Yes Legal and Governance None Risk None Consultation Internal Yes External None Communication Communications Plan None 1. Strategic Implications Corporate Plan 1.1 The Council’s Corporate Plan 2022 – 2027 lays out seven outcome focussed strategic objectives which provide clear strategic direction, inform decisions at a corporate and service level and shape resources allocation. They are as follows: • Tackling Poverty • Tackling climate change and supporting sustainable places • Growing a sustainable and inclusive local economy • Enabling our children and young people to achieve their full potential • Protecting and caring for our most vulnerable people • Supporting and promoting physical and mental wellbeing • Placing communities at the heart of how we work 1.2 This report relates to all of these objectives. 2. Resource Implications Financial 2.1 There are no direct financial implications arising from this report other than those reported within the body of the main report. Page 92 of 104
Page 93
Workforce 2.2 There are no direct workforce implications arising from this report. Asset Management (land, property, IT) 2.3 There are no direct asset management implications arising from this report other than those reported within the body of the main report. 3. Assessments Equality Impact Assessment 3.1 Under the Equality Act 2010, the Council is required to eliminate discrimination, advance equality of opportunity, and foster good relations between equality groups. Carrying out Equality Impact Assessments for plans and policies allows the Council to demonstrate that it is meeting these duties. 3.2 The information contained within this report has been considered under the Corporate Equalities Impact Assessment process (EqIA) and has been assessed as not relevant for the purposes of EqIA. Strategic Environmental Assessment 3.3 The Environmental Assessment (Scotland) Act 2005 places a duty on the Council to identify and assess the environmental consequences of its proposals. 3.4 The information contained within this report has been considered under the Act. However, no action is required as the Act does not apply to the matters presented in this report. Sustainability 3.5 Under the provisions of the Local Government in Scotland Act 2003 the Council has to discharge its duties in a way which contributes to the achievement of sustainable development. In terms of the Climate Change Act, the Council has a general duty to demonstrate its commitment to sustainability and the community, environmental and economic impacts of its actions. 3.6 The information contained within this report has been considered under the Act. However, no action is required as the Act does not apply to the matters presented in this report. 4. Consultation 4.1 The Chief Executive and the Council’s Treasury advisors, Link Asset Services, have been consulted in the preparation of this report. Page 93 of 104
Page 94
2. BACKGROUND PAPERS 2.1 No background papers, as defined by Section 50D of the Local Government (Scotland) Act 1973 (other than any containing confidential or exempt information) were relied on to any material extent in preparing the above report. 3. APPENDICES Appendix I – PWLB Fixed Maturity Interest Rates from 1 October 2023 to 31 March 2024. Appendix II – Summary of the Treasury Position and Transactions from 1 October 2023 to 31 March 2024. Appendix III – Approved Investment Counterparty List. Appendix IV – Monitoring of Prudential Indicators – Period ending 31 March 2024. Page 94 of 104
Page 95
PW LB Fixed Maturity Interest Rates From 1st October 2023 to 31st March 2024 (Certainty Rate) APPENDIX I 3.50 3.75 4.00 4.25 4.50 4.75 5.00 5.25 5.50 5.75 6.00 6.25 01-Oct-23 08-Oct-23 15-Oct-23 22-Oct-23 29-Oct-23 05-Nov-23 12-Nov-23 19-Nov-23 26-Nov-23 03-Dec-23 10-Dec-23 17-Dec-23 24-Dec-23 31-Dec-23 07-Jan-24 14-Jan-24 21-Jan-24 28-Jan-24 04-Feb-24 11-Feb-24 18-Feb-24 25-Feb-24 03-Mar-24 10-Mar-24 17-Mar-24 24-Mar-24 31-Mar-24 1 Year 5 Years 10 Years 20 Years 30 Years 50 Years 7 Page 95 of 104
Page 96
Page 96 of 104
Page 97
SUMMARY OF THE TREASURY POSITION AND TRANSACTIONS 1 OCTOBER 2023 TO 31 MARCH 2024 APPENDIX II 1 LONG TERM BORROWING (a) Long Term Borrowing 1 October 2023 to 31 March 2024 Average Average Amount No. Rate (%) Life (years) (£) PWLB - Maturity Loans 2 4.51% 5.7 30,000,000 2 4.51% 5.7 30,000,000 (b) Long Term Debt Repayments 1 October 2023 to 31 March 2024 Average Amount No. Rate (%) (£) Scottish Government - Empty Homes Loan 1 0.00% 140,000 0 0.00% 140,000 (c) Long Term Debt Outstanding Outstanding Average Outstanding Average 30-Sep-23 Rate 31-Mar-24 Rate £ £ Public Works Loan Board 555,000,000 2.39% 585,000,000 2.50% Money Market Loans (LOBO's) 43,200,000 4.59% 43,200,000 4.59% Other Long Term Debt 140,000 0.00% 0 0.00% TOTAL 598,340,000 2.55% 628,200,000 2.64% 2 SHORT TERM BORROWING (a) Short Term Market Borrowing - 1 October 2023 to 31 March 2024 Average Average Average Interest No. Amount (£) Rate (%) Term (Days) (£) Temporary borrowing 1 10,000,000 5.35% 7 10,260.27 1 10,000,000 5.35% 7 10,260.27 (b) Short Term Borrowing Outstanding Outstanding Average Outstanding Average 30-Sep-23 Rate 31-Mar-24 Rate £ £ Market Borrowing 0 0.00% 0 0.00% Common Good and Charitable Funds 2,293,508 3.95% 2,414,508 4.81% Local Trusts & Investors 3,129,650 4.69% 2,247,591 4.58% 7 Page 97 of 104
Page 98
SUMMARY OF THE TREASURY POSITION AND TRANSACTIONS 1 OCTOBER 2023 TO 31 MARCH 2024 APPENDIX II TOTAL 5,423,158 4.38% 4,662,099 4.69% 3 INVESTMENTS (a) Investment Transactions - 1 October 2023 to 31 March 2024 Average Average Average Total Fixed Deposits & Investments No. Amount (£) Rate (%) Term (Days) Interest (£) Banks 1 5,000,000 5.38% 56 41,271.23 Foreign Banks and Institutions 1 5,000,000 5.44% 85 63,342.47 Other Local Authorities 10 5,250,000 6.74% 18 174,082.19 12 5,208,333 6.53% 27 278,695.89 Average Average Total Instant/Notice Accounts & Money Market Funds Amount (£) Rate (%) Interest (£) Instant Access/Notice accounts 498,335 4.58% 7,426.26 Money Market Funds 9,433,125 5.34% 384,349.84 6,949,447 5.32% 391,776.11 (b) Investments Outstanding Outstanding Average Outstanding Average 30-Sep-23 Rate 31-Mar-24 Rate £ £ UK Banks 60,107,877 5.59% 25,008,505 5.91% Foreign Banks and Institutions 43,000,000 5.45% 10,000,000 5.94% Other Local Authorities 25,000,000 4.54% 29,500,000 7.18% Money Market Funds 5,025,000 5.35% 1,025,000 5.29% Page 98 of 104
Page 99
APPROVED INVESTMENT COUNTERPARTY LIST APPENDIX III Fitch Credit CDS Maximum Country Rating Range Lending Note (2) Category 1 - Principal UK Clearing Banks - 40% Investment total (or £20M per Counterparty if higher) (Minimum rating required Fitch A, F1) Bank of Scotland (RFB) (5) UK A+, F1 In range 6 months £80million Group limit Barclays Bank plc (NRFB) (5) UK A+, F1 No data 6 months Barclays Bank plc (RFB) (5) UK A+, F1 In range 6 months Goldman Sachs International Bank UK A+, F1 In range 6 months Handelsbanken plc UK AA, F1+ No data 12 months HSBC Bank plc (NRFB) UK AA-, F1+ In range 12 months HSBC Bank plc (RFB) UK AA-, F1+ No data 12 months Lloyds Bank Corporate Markets Plc (NRFB) UK A+, F1 No data 6 months £80million Group limit Lloyds Banking Group plc (RFB) UK A+, F1 In range 6 months £80million Group limit NatWest Markets Plc (NRFB) UK A+, F1 In range 12 months Royal Bank of Scotland plc (RFB) (inc Nat West) (3) (4) UK A+, F1 Nationalised 12 months Sovereign Rating AA Santander UK plc (inc Cater Allen) UK A+, F1 No data 12 months Standard Chartered Bank UK A+, F1 In range 6 months Sumitomo Mitsui Banking Corporation Europe Ltd UK A, F1 In range 6 months Category 2 - Foreign Banks & Institutions - 25% Investment total (or £10M per Counterparty if higher) (Minimum rating required Fitch A, F1) Australia and New Zealand (ANZ) Banking Group Ltd Aus A+, F1+ In range 12 months Commonwealth Bank of Australia Aus A+, F1+ In range 12 months Macquarie Bank Ltd Aus A, F1 No data 12 months National Australia Bank Ltd Aus A+, F1+ In range 12 months Westpac Banking Corporation Aus A+, F1+ In range 12 months BNP Paribas Fortis Bank Belgium A+, F1 No data 1 month Sovereign Rating AA- KBC Bank Belgium A+, F1 No data 1 month Sovereign Rating AA- Bank of Montreal Can AA-, F1+ No data 12 months Bank of Nova Scotia Can AA-, F1+ No data 12 months Canadian Imperial Bank of Commerce Can AA-, F1+ No data 12 months National Bank of Canada Can A+, F1 No data 6 months Royal Bank of Canada Can AA, F1+ No data 12 months Toronto Dominion Bank Can AA-, F1+ No data 12 months Danske Bank Denmark A, F1 In range 6 months Nordea Bank Finland plc Finland AA-, F1+ No data 1 month Sovereign Rating AA+ BNP Paribas France A+, F1 In range 1 month Sovereign Rating AA Credit Agricole Corporate and Investment Bank France A+, F1 In range 1 month Sovereign Rating AA Credit Agricole SA France A+, F1 In range 1 month Sovereign Rating AA Credit Industriel et Commercial France A+, F1 No data 1 month Sovereign Rating AA DZ Bank AG Germany AA-, F1+ No data 12 months Landesbank Hessen-Thueringen Girozentral (Helaba) Germany A+, F1+ In range 12 months Landwirtschaftliche Rentenbank Germany AAA, F1+ No data 24 months NRW Bank Germany AAA, F1+ No data 24 months ABN AMRO Bank Netherlands A, F1 No data 6 months Bank Nederlandse Germeenten Netherlands AAA, F1+ No data 24 months Cooperatieve Rabobank Netherlands A+, F1+ In range 12 Months ING Bank Netherlands AA-, F1+ In range 12 Months DBS Bank Limited Singapore AA-, F1+ No data 12 months United Overseas Bank Ltd Singapore AA-, F1+ No data 12 months Skandinaviska Enskilda Banken AB Sweden AA-, F1+ No data 12 months Svenska Handelsbanken AB Sweden AA, F1+ No data 12 months Swedbank AB Sweden A+, F1 No data 12 months UBS AG Switzerland AA-, F1+ In range 12 months Bank of America, NA USA AA-, F1+ No data 12 months Bank of New York Mellon USA AA, F1+ No data 24 months Citibank, NA USA A+, F1 In range 12 months JP Morgan Chase Bank, NA USA AA, F1+ No data 12 months Wells Fargo Bank, NA USA AA-, F1+ In range 12 months 7 Page 99 of 104
Page 100
APPROVED INVESTMENT COUNTERPARTY LIST APPENDIX III Category 3 - Subsidiary Banks & Building Societies - 15% of Investment total (or £10M per Counterparty if higher) (Minimum rating required Fitch A, F1) (parent bank shown in brackets) Subsidiary Banks None Building Societies Nationwide Building Society UK A, F1 No data 6 months Category 4 - Other Local Authorities - 20% of Investment total (or £20M per Counterparty if higher) As arranged Category 5 Money Market Funds - 10% of Investment Total (or £10M per Counterparty if higher) (Minimum rating required Fitch AAA) Aberdeen Standard Investments UK AAA Aviva Investors Liquidity Fund UK AAA Federated Sterling Liquidity Fund (Class 3) UK AAA Insight Sterling Liquidity Fund (Class 5) UK AAA Deutsche Bank Sterling Fund UK AAA Note: (1) - Standard & Poor's credit ratings shown, as no Fitch credit rating available (2) - All Soveriegn credit ratings for above Countries are AAA, unless stated otherwise. (3) - Banks are part/majority owned by the UK government (4) - UK Sovereign Rating is AA (Fitch and Standard & Poor's) Last Updated: 04-Apr-24(5) - NRFB = Non Ring Fenced Bank, RFB = Ring Fenced Ban Page 100 of 104
Page 101
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. 7 Page 101 of 104
Page 102
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. Page 102 of 104
Page 103
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% Page 103 of 104
Page 104
Page 104 of 104