Appendix IV – Monitoring of Prudential Indicators – Period ending 30 Sept 24

Perth and Kinross Council · 20 November 2024
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PERTH AND KINROSS COUNCIL
PRUDENTIAL INDICATORS - 6 MONTHS ENDING 30 SEPTEMBER 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.
2024/25 2025/26 2026/27 2027/28 2028/29 2029/30
Prudential Limit - General Fund 15.00% 15.00% 15.00% 15.00% 15.00% 15.00%
Estimated Ratio of Financing Costs to Revenue 7.50% 8.65% 9.62% 10.24% 10.75% 11.13%
Prudential Limit - HRA 30.00% 30.00% 30.00% 30.00% 30.00% 30.00%
Estimated Ratio of Financing Costs to Revenue 22.60% 23.40% 25.82% 28.28% 28.91% 28.90%
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 Projected Projected
30-Sep-24 31-Mar-25 31-Mar-26 31-Mar-27 31-Mar-28 31-Mar-29 31-Mar-30
Net External Borrowing* 719,080,000 849,228,000 979,612,000 1,099,995,000 1,160,378,000 1,198,261,000 1,222,661,000
Gross External Borrowing* 760,535,000 874,228,000 999,612,000 1,119,995,000 1,180,378,000 1,218,261,000 1,242,661,000
Capital Financing Requirement 857,154,000 925,462,000 1,027,511,000 1,141,096,000 1,201,078,000 1,238,898,000 1,261,935,000
*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 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30
Current estimate 169,980,000 114,628,000 136,686,000 84,854,000 65,787,000 47,778,000
Original Budget Estimate (including Budget Motion) 207,568,000 119,305,000 90,371,000 71,378,000 37,039,000 34,008,000
Movement in Estimated Capital Expenditure (37,588,000) (4,677,000) 46,315,000 13,476,000 28,748,000 13,770,000
The Original Budget Estimates are those per the 2024/25 to 2029/30 Composite Capital Budget Report on 28 February 2024
The latest estimates for Capital Expenditure are based on the F&R Capital Monitoring Report No 2 on 20 November 2024.
HRA Programme 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30
Current estimate 28,161,000 20,256,000 15,633,000 19,502,000 13,365,000 20,000,000
Original Budget Estimate 19,831,000 18,248,000 17,283,000 22,105,000 20,044,000 20,000,000
Movement in Estimated Capital Expenditure 8,330,000 2,008,000 (1,650,000) (2,603,000) (6,679,000) 0
The Original Budget Estimates are those per the 2024/25 to 2028/29 Housing & Social Wellbeing Budget Report on 24 January 2024.
The latest estimates for Capital Expenditure are based on the F&R Capital Monitoring Report No 2 on 20 November 2024.

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PERTH AND KINROSS COUNCIL
PRUDENTIAL INDICATORS - 6 MONTHS ENDING 30 SEPTEMBER 2024
APPENDIX IV
4 Estimate of Capital Financing Requirement
The estimate (as at October 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 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30
Current Estimated Capital Financing Requirement 135,171,000 97,489,000 111,300,000 61,388,000 48,087,000 29,592,000
Original Budget Estimate (including Budget Motion) 177,907,000 102,378,000 65,781,000 49,185,000 19,739,000 16,222,000
Movement in Estimated Capital Financing Requirement (42,736,000) (4,889,000) 45,519,000 12,203,000 28,348,000 13,370,000
The Original Budget Estimates are those per the 2024/25 to 2029/30 Composite Capital Budget Report on 28 February 2024
The latest estimates for Capital Expenditure are based on the F&R Capital Monitoring Report No 2 on 20 November 2024.
HRA Programme 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30
Current Estimated Capital Financing Requirement 26,244,000 18,178,000 13,629,000 17,377,000 11,025,000 17,700,000
Original Budget Estimate 17,998,000 16,170,000 15,279,000 19,980,000 17,704,000 17,700,000
Movement in Estimated Capital Financing Requirement 8,246,000 2,008,000 (1,650,000) (2,603,000) (6,679,000) 0
The Original Budget Estimates are those per the 2024/25 to 2028/29 Housing & Social Wellbeing Budget Report on 24 January 2024.
The latest estimates for Capital Expenditure are based on the F&R Capital Monitoring Report No 2 on 20 November 2024.
5 External Debt (Gross and Net)
As at Projected Projected Projected Projected Projected Projected
External Borrowing 30-Sep-24 31-Mar-25 31-Mar-26 31-Mar-27 31-Mar-28 31-Mar-29 31-Mar-30
Public Works Loan Board 579,500,000 697,000,000 827,000,000 952,000,000 1,037,000,000 1,079,500,000 1,109,500,000
Market Bonds (LOBOs) 63,200,000 63,200,000 63,200,000 63,200,000 43,200,000 43,200,000 43,200,000
Project Borrowing 0 0 0 0 0 0 0
Special Loans 2,414,508 2,414,508 2,414,508 2,414,508 2,414,508 2,414,508 2,414,508
Temporary Loans/Other Borrowing 3,593,640 3,000,000 2,800,000 2,600,000 2,400,000 2,200,000 2,000,000
Other Long Term Liabilities (PPP/PFI) 111,826,977 108,613,977 104,197,227 99,780,477 95,363,727 90,946,977 85,546,177
Total Gross External Debt 760,535,125 874,228,485 999,611,735 1,119,994,985 1,180,378,235 1,218,261,485 1,242,660,685
Short Term Investments (41,455,563) (25,000,000) (20,000,000) (20,000,000) (20,000,000) (20,000,000) (20,000,000)
Long Term Investments 0 0 0 0 0 0 0
Total Net External Debt 719,079,561 849,228,484 979,611,734 1,099,994,984 1,160,378,234 1,198,261,484 1,222,660,684
Note:
Operational Boundary 761,000,000 875,000,000 1,000,000,000 1,120,000,000 1,181,000,000 1,219,000,000 1,243,000,000
Authorised Limit 1,280,000,000 1,280,000,000 1,280,000,000 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.