Agenda Document Pack - Finance and Resources Committee - 30/04/2025
Perth and Kinross Council · 30 April 2025
Back to Finance and Resources Committee — 30 April 2025 and its agenda
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Ambition | Compassion | Integrity Our vision is for a Perth and Kinross where everyone can live life well, free from poverty and inequality Council Building 2 High Street Perth PH1 5PH 23/04/2025 A hybrid meeting of the Finance and Resources Committee will be held in the Council Chamber on Wednesday, 30 April 2025 at 13:00. If you have any queries please contact Democratic 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 Councillor Peter Barrett Councillor Andy Chan Councillor Dave Cuthbert Councillor Eric Drysdale Councillor John Duff Councillor David Illingworth Provost Xander McDade Councillor Tom McEwan Bailie Claire McLaren Depute Provost Andrew Parrott Councillor John Rebbeck Councillor Caroline Shiers Councillor Colin Stewart Page 1 of 104
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Finance and Resources Committee Wednesday, 30 April 2025 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 MINUTES 3(i) MINUTE OF MEETING OF THE FINANCE AND RESOURCES COMMITTEE OF 5 FEBRUARY 2025 FOR APPROVAL (copy herewith) 5 - 6 3(ii) MINUTE OF MEETING OF THE EMPLOYEES JOINT CONSULTATIVE COMMITTEE OF 9 DECEMBER 2024 FOR NOTING (copy herewith) 7 - 12 4 OUTSTANDING BUSINESS STATEMENT (copy herewith 24/98) 13 - 14 5 REVENUE BUDGET 2024/25 – UPDATE NO. 4 Report by Chief Finance Officer (copy herewith 25/99 (Revised)) 15 - 54 6 COMPOSITE CAPITAL BUDGET 2024/30 AND HOUSING INVESTMENT PROGRAMME 2024/29 – MONITORING REPORT NO.4 Report by Chief Finance Officer (copy herewith 25/100) 55 - 84 7 TREASURY ACTIVITY AND COMPLIANCE REPORT 2024/25 - 6 MONTHS TO 31 MARCH 2025 Report by Chief Finance Officer (copy herewith 25/101) 85 - 104 Page 3 of 104
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DRAFT 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 5 February 2025 at 1.30pm. Present: Councillors S Donaldson and G Laing; Bailies C Ahern and Bailie C McLaren; Provost X McDade, Depute Provost A Parrott; and Councillors 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; C Mailer, Depute Chief Executive; J Pepper, Chief Officer – Health and Social Care Partnership, S Walker, Strategic Lead - Finance and Business Support; A O’Brien, S Coyle, C France, J Jennings, C Palmer, C Robertson and J Salisbury (all Finance and Business Support); S Crawford, Strategic Lead – Property Services; J Janes (Property Services); S Merone, Strategic Lead – Economy, Development and Planning; E Ritchie – Strategic Lead - Housing and Communities; A Clegg and H Hope (Housing and Communities); F Crofts, Strategic Lead - Environment and Infrastructure; C Daly, D Davidson, N Taylor (Environment and Infrastructure); A Taylor, Strategic Lead – Customer and Digital Services; L Brady, K Fraser, G Plunkett, G Stewart and N Sutherland (Customer and Digital Services); D Macluskey, Strategic Lead – Education and Learning; C Guild, Strategic Lead - Projects & Programmes; N Ballentine (Projects & Programmes); L Simpson, Strategic Lead – Legal and Governance; K Molley, A Brown and S Dockerill (all Legal and Governance). 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. Minutes (i) Minute of Meeting of the Finance and Resources Committee of 20 November 2024 The minute of meeting of the Finance and Resources Committee of 20 November 2024 was submitted and approved as a correct record. (ii) Minute of Meeting of the Employees Joint Consultative Committee of 17 June 2024 The minute of meeting of the Employees Joint Consultative Committee of 17 June 2024 was noted. 3(i) Page 5 of 104
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DRAFT (iii) Minute of Meeting of the Employees Joint Consultative Committee of 16 September 2024 The minute of meeting of the Employees Joint Consultative Committee of 16 September 2024 was noted. 4. Outstanding Business Statement Resolved: The status of action in the Outstanding Business Statement (25/23) be noted and completed actions removed accordingly. 5. Revenue Budget 2024/25 - Update No. 3 There was submitted a report by the Chief Finance Officer (25/24) providing an update on progress with the 2024/25 General Fund Revenue Budget based upon the November 2024 ledger, updated for any subsequent known material movements, and the projected financial position of the Housing Revenue Account. Resolved: (i) The contents of Report 25/24, be noted. (ii) The projected outturn for General Fund Services, as set out in Section 5 of Report 25/24 and Appendices 1 and 2, be noted. (iii) The projected outturn for Corporate Budgets, as set out in Section 6 of Report 25/24, be noted. (iv) The funding update, provided in Section 7 of Report 25/24, be noted. (v) The projected outturn for the Housing Revenue Account, as summarised in Section 8 of Report 25/24 and Appendix 4, be noted. (vi) The adjustments to the 2024/25 Management Revenue Budget, as detailed in Sections 9,10 & 11 of Report 25/24 and Appendices 1, 2, 4, 5, 6, and 7, be approved. (vii) The financial risks, as set out in Section 12 of Report 25/24 and Appendix 8, be noted. 6. Composite Capital Budget 2024/30 & Housing Investment Programme 2024/29 - Monitoring Report No. 3 There was submitted a report by the Chief Finance Officer (25/25) (1) providing a summary position to date for the 6-year Composite Capital Budget for 2024/25 to 2029/30 and the 5-year Housing Investment Programme for 2024/25 to 2028/29; and (2) seeking approval for adjustments to the programmes. Resolved: (i) The contents of Report 25/25, be noted. (ii) The proposed adjustments to the six-year Composite Capital Budget 2024/25 to 2029/30, as set out in Sections 5 and 6 of Report 25/25 and summarised in Appendices I and II, be approved. (iii) The proposed adjustments to the Housing Investment Programme Budget 2024/25 to 2028/29, as set out in Section 7 of Report 25/25 and summarised in Appendix III, be approved. (iv) Progress with the delivery of major Capital projects, as summarised in Appendix IV to Report 25/25, be noted. Page 6 of 104
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PERTH AND KINROSS COUNCIL FINANCE AND RESOURCES COMMITTEE EMPLOYEES JOINT CONSULTATIVE COMMITTEE Minute of hybrid meeting of the Employees Joint Consultative Committee held in the Room 410, 2 High Street, Perth on Monday 9 December 2024 at 2.00pm. Present: Representing Perth and Kinross Council: Councillors K Allan, S McCole and J Rebbeck (Item 8 onwards). Present: Representing Trade Unions: N Ferry (UNISON) S Hope (UNISON) S Topen-Cooper (NASUWT) C Weston (EIS) (up to and including Item 8) In Attendance: J Guild, L Hamilton, P Johnstone, C Judge, F MacKay, L McGeorge and F Thomson. Apologies: V Leonard, M Mackie and S Robertson. S Hope in the Chair. 1. Welcome and Apologies S Hope welcomed all present to the meeting and apologies were noted as above. 2. Declarations of Interest There were no declarations of interest made in terms of the Councillors’ Code of Conduct. 3. Minute of Meeting of The Employees Joint Consultative Committee of 16 September 2024 For Approval The minute of meeting of the Employees Joint Consultative Committee of 16 September 2024 was submitted and approved as a correct record. 4. Matters Arising (i) H&S Consultative Committees L Hamilton advised there has been a slight delay in establishment of the Committees and the framework will be in place by March 2025 with the first meeting to be arranged thereafter. (ii) Employee Survey Action Points F Thomson advised that organisation wide themes have been identified while actions continue to be taken forward by individual managers. Some actions 3(ii) Page 7 of 104
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are already in place i.e. Health and Wellbeing so promotion will be increased and with relevant progressions made as required. (iii) Fair Work First F Thomson advised that Scottish Government guidance recently received now makes specific reference to equality requirements and a meeting to progress any related actions will be held with the Trade Unions in the new year. 5. Health nd Safety Performance Report Quarter 2 – July-September 2024/25 There was a report submitted by the Corporate Health and Safety Team Leader (G/24/199) informing and assisting the Employees Joint Consultative Committee in monitoring health and safety compliance and performance across Perth and Kinross Council and providing an overview of health and safety activities undertaken. In response to a question from S Topen-Cooper regarding resolution of staff absences of longer than 7 days following incidents at work, L Hamilton confirmed 3 of 5 have returned to work but she could not comment on individual supports in place. Resolved: The contents of Report G/24/199, be noted. 6. FIRE SAFETY QUARTERLY REPORT – QUARTER 2 – JULY-SEPTEMBER 2024/25 There was a report submitted by the Strategic Lead – Strategic Planning, People and Performance (G/24/200) informing and assisting the Employees Joint Consultative Committee in monitoring fire safety performance across Perth and Kinross Council and providing an overview of fire safety activities undertaken. In response to a question from Councillor McCole regarding the use of a nebuliser setting off a fire alarm at Fairview School, L Hamilton advised she would provide more information in due course and further advised the establishment will be reprioritised for fire risk assessment. Resolved: The contents of Report G/24/200, be noted. 7. Staff Reporting: Incidents of Violence/Aggression and Incidents of Distressed/Challenging Behaviour In Education Settings, Term 1 2024/25 There was a report submitted by the Strategic Lead – Education and Learning (G/24/201) informing Employees Joint Consultative Committee of the Education Service’s performance in managing and reducing incidents of violence and aggression or distressed and challenging behaviour that have impacted staff in the workplace. The report provides a summary of the Page 8 of 104
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information gathered in Term 1 of academic year 2024/2025 in relation to staff reports of incidents in schools and other educational settings which had an emotional or physical impact on them. It also provides information on the activity of an established working group to prevent and reduce the number of incidents. In response to a question from C Weston in relation to the process for reporting and how many reports are returned within the timescale, F MacKay advised she will explore and feedback in due course. F MacKay added it is the responsibility of the headteacher to acknowledge the report has been received and provide initial supports during the debrief with the involved staff member. F MacKay further advised there is to be CALM training for headteachers and managers to support consistency in relation to debriefing. In response to another question from C Weston regarding additional supports for Teachers in the first terms of Primary 1 in response to the reported figures, F MacKay advised that additional staff and funding has been committed, however, feedback from Headteachers often reflects Term 1 as a settling in period which is likely to be reflected in Term 2 data. In response to a third question from C Weston regarding clear expectations and consequences for acceptable and non-acceptable behaviour, F MacKay advised that further advice would be sought from S Turner, Inclusion Service Manager. In response to a question from S Topen-Cooper in relation to the online videos regarding acceptable behaviours and consequences but lack of specific definitions for staff and uncertainty this is causing, F MacKay advised that it is challenging to give a clear definition which will fit every situation, however, Headteachers should be aware of parameters and Codes of Conduct from GTCS. P Johnstone added that PKC have clear guidelines in relation to de-escalation and laying on hands (Physical Intervention Policy). P Johnstone added this will be reinforced to raise awareness but is also due to be reviewed in line with new national guidance. In response to another question from S Topen-Cooper regarding staff reporting no difference in the short term due to the length of reporting processes and whether access to the reporting system could be more readily available on staff computers, F MacKay agreed this could be looked into. In response to a question from S Hope regarding transitional planning between nursery and Primary 1, F MacKay advised information and arrangements to develop relationships between pupils and staff in advance is being developed for all Council run and private nurseries. F MacKay added that transitions between year groups at all levels are also being enhanced. In response to a question from Councillor McCole regarding a correlation between incidents of violence and aggression or distressed and challenging behaviour and whether children have been in a nursery setting prior to starting Page 9 of 104
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school, F MacKay advised that the majority of children have been through an early learning setting but acknowledged that it can cause issues with planning if they haven’t. F MacKay added that earlier intervention with early learning settings is part of ongoing work in relation to the ASN transformation. P Johnstone added that the Poverty Action Group is also looking at any correlation with families and young people who may have additional support needs. Resolved: The contents of Report G/24/201, be noted. (Councillor J Rebbeck joined the meeting at this point.) 8. Unison Violence and Aggression Survey There was a slide-based presentation delivered by N Ferry, UNISON, sharing the initial results of a recent staff survey. Full results will be shared with the Committee by email with further updates comparing results to the 10 point charter, brought to the next meeting. Resolved: The contents of the presentation, be noted. (C Weston left the meeting at this point.) 9. Modern Apprentice Programme Update There was a report submitted by the People and Culture Manager (G/24/202) providing an update to the Employee Joint Consultative Committee, on the achievements of the Councils’ Modern Apprentice Programme over the past year. L McGeorge commented on the successful experience of engaging a Modern Apprentice in her team, and hope to be able to offer them a permanent position in future. Resolved: The contents of Report G/24/202, be noted. 10. Health and Wellbeing Update There was a report submitted by the People and Culture Manager (G/24/298) providing an update on current Health and Wellbeing data and current Health and Wellbeing activities. Resolved: The contents of Report G/24/198, be noted. Page 10 of 104
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11. Equalities Update There was a report submitted by the People and Culture Manager (G/24/203) providing an update on recent and planned employment equality activities within Perth & Kinross Council, reinforcing our commitment to an inclusive workplace. Additional information from the Housing and Communities Equalities Team Leader was also shared. S Hope added his thanks to C Judge, People and Culture Team Leader, and D McPhee, Equalities Team Leader, for their ongoing work. Resolved: The contents of Report G/24/203, be noted. 12. Worker Protection Act (Amendment Of Equality Act 2010) 2024 P Johnstone advised the Employees Joint Consultative Committee of a new duty which came into force on 26 October 2024 to prevent sexual harassment in the course of employment. Work is ongoing with Unions and others to capture data, develop an appropriate reporting mechanism and raise awareness. Resolved: The Committee noted the position. 13. Vacancy and Post Management Measures F Thomson advised additional scrutiny processes for all vacancies are ongoing with a view to managing budget resources. Alternative ways to fill vacancies or delay in filling vacancies, if appropriate, are being considered. Any exceptions continue to be processed as quickly as possible. Resolved: The Committee noted the position. 14. Workforce Planning Themed Board (Employer Branding) F Thomson stated that the People and Culture Strategy 2024-2028 approved by Committee in June 2024 now included recommendations in the action plan following a recent audit by Audit Scotland. The Workforce Planning Themed Board established to bring a coordinated approach across the organisation and share good practice is overseeing the actions and progress arising from the audit and strategy. Workforce plans are currently being worked on by Strategic Leads. She explained that one working group reporting to the Board is the Employer of Choice group looking at the Council employer brand and promotion of opportunities. A request was made for a union representative to join the group. Page 11 of 104
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Resolved: (i) The Committee noted the position. (ii) It be agreed that N Ferry be appointed to the Board as the Union Representative. 15. Date of Next Meeting Wednesday 26 March 2025 at 1.30pm. Page 12 of 104
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Finance and Resources Committee Outstanding Business Statement (OBS) (Report No. 25/98) 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 22. 23 Mar 2023 Executive Sub- Committee Revenue Budget 2022/23 – Tayside Contracts The Strategic Lead - Legal and Governance to raise the issue of the 75% rule and the possibility of flexible voting arrangements with the Clerk of Tayside Contracts Joint Committee and the Head of Legal at Angus Council. Initial meeting took place with the respective Legal advisors, the Clerk to the Joint Committee and the Managing Director of TC to explore changes to the voting provisions. LS set out the view of PKC and the Legal Advisors will now seek the views of Angus and Dundee City Councils with a further meeting to be convened to discuss options. Lisa Simpson Ongoing 25 June 2025 31. 20 November 2024 Item 5. Revenue Budget 2024/25 – Update no. 2 S Merone provided a verbal update on Perth Harbour and the discussions with Transport Scotland at Committee on 5 February 2025. A report will be submitted to the Economy & Infrastructure Committee on 28 May 2025. It will provide Members with an update on the review of Perth Harbour operations to support the delivery of the ‘Harbour Quarter’ Serge Merone Complete 30 April 2025 4 Page 13 of 104
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No Minute Reference Subject Title Outstanding Action Update Lead Officer/ Service Action Due Action Expected An EM briefing note be circulated to members with further information. promoted as part of the Perth City Development and Design Framework and wider Inner River Tay developments for leisure, tourism and nature. Any financial implications of the review of Perth Harbour operations will be reported to the Finance and Resources Committee. 34. 5 February 2025 Item 5. Revenue Budget 2024/25 – Update no. 3 A breakdown of the movements in Reserves of 1.3m for Housing and Communities be shared with members. Response was issued to members via email. Scott Walker Complete 30 April 2025 Page 14 of 104
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Our vision is a Perth and Kinross where everyone can live life well, free from poverty and inequality ___________________________________________________________________ Committee or Board: Finance and Resources Committee Date of Meeting: 30 April 2025 Report Title: Revenue Budget 2024/25 – Update No. 4 Report Number: 25/99 (Revised) Report Author: Scott Walker, Chief Finance Officer Organisational Lead: Scott Walker, Chief Finance Officer ___________________________________________________________________ 1. Purpose 1.1 The purpose of this Report is to provide an update on progress with the 2024/25 General Fund Revenue Budget based upon the January 2025 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 2024/25 General Fund Management Budget is £2.737 million (see Appendix 1). 1.3 The report also seeks approval for several adjustments to the 2025/26 Revenue Budget approved by Council on 26 February 2025 (Report No 25/36 refers) (see Appendix 9). 1.4 Sections 1. Purpose 2. Recommendations 3. Background 4. 2024/25 Revenue Monitoring 5. 2024/25 Revenue Budget Adjustments 6. 2025/26 Revenue Budget Adjustments 7. Financial Risks 8. Best Value Audit Report 9. Conclusion 10. Impact Value Assessment 11. Appendices 5 Page 15 of 104
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2. Recommendations It is recommended that the Committee: 2.1 note the contents of the report. 2.2 note the projected outturn for the General Fund set out in Section 4 and Appendix 1 and 2. 2.3 approve the adjustments to 2024/25 General Fund budgets set out in Section 5 and Appendices 1,2,4,5,6 and 7. 2.4 approve the adjustments to the 2025/26 General Fund budgets set out in Section 6. 2.5 note the financial risks set out in Section 7 and Appendix 8. 2.6 confirms the Council’s approach to medium to longer term financial planning set out in Section 8. 3. Background 3.1 This report updates the Committee on progress with the 2024/25 Revenue Budget. Appendix 1 to this report summarises the current projected year end (outturn) position for each Service based upon the January 2025 ledger, updated for any subsequent known material movements. 3.2 The budget reflected in Column 1 of Appendix 1 to this report is that approved by the Council in setting the final 2024/25 Revenue Budget on 28 February 2024 (Report No. 24/63 refers). In addition, adjustments approved by the Finance & Resources Committee on 24 April, 18 September and 20 November 2024 and 5 February 2025 (Report Nos. 24/130, 24/260, 24/318, and 25/24 refer) are reflected in Appendix 1 (Column 2). 4. 2024/25 Revenue Monitoring Service Budgets 4.1 The total net projected under spend on Service budgets, which is summarised in Section 1 of Appendix 1 to this report, is £2.814 million which represents 0.8% of total net Service expenditure. Since the last update, this is a positive movement of £1.703 million. 4.2 Details of variances against individual Service budgets are shown in Appendix 2 to this report with the most significant variances summarised below. 4.3 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. Page 16 of 104
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4.4 There remains a risk that the Council continues to experience increases in costs over the short to medium term that are higher than budgeted. Going forward, this may continue to have an impact on projected outturns and future years’ budgets. Education and Learning 4.5 The projected outturn for Education and Learning excluding Devolved School Management (DSM) and the Pupil Equity Fund (PEF) is currently anticipated to be £1.152 million or 0.7% less than budget which represents a movement of £1.152 million from the last update. The individual elements contributing to this movement are summarised in the following table with commentary on the significant movements below. Projected Outturn MovementFunction £’000 % £’000 Education & Learning Core Under spend (23) (1.8) - Nursery Sector Under spend (1,573) (6.6) (597) Primary Sector Over spend 878 1.9 (186) Secondary Sector Under spend (677) (13.4) (211) Special Sector Under spend (98) (0.8) (105) Home to School Transport Over spend 341 3.2 (53) TOTAL Under spend 1,152 (0.7) (1,152) 4.6 In the Nursery Sector, there is an increase in the projected under spend of £597,000 due to additional staff slippage and the accelerated delivery of approved savings. 4.7 In the Primary Sector there is a reduction in the projected over spend of £186,000 due to reduced expenditure on supply teachers and additional staff slippage. 4.8 Within the Secondary Sector, there is an increase in the projected under spend of £211,000 due to additional staff slippage across individual schools. 4.9 In the Special Sector, there is a reduction in the projected over spend of £105,000. This is primarily the result of additional staff slippage due to recruitment challenges and the receipt of non-recurring funding. 4.10 In Home to School Transport there is a reduction in the projected over spend of £53,000 following inclusion of savings from the strike days in October 2024 and school closures for weather events. 4.11 The Devolved School Management Scheme is currently projected to under spend by £235,000. However, some schools are experiencing challenges in delivering approved staff slippage targets and facing inflationary pressures against budgets that have been reduced over previous years. The budgets for the Devolved School Management scheme are allocated by financial year (April – March), whereas expenditure is incurred by academic year (August – June). Page 17 of 104
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4.12 At this stage of the academic year, expenditure met from the Pupil Equity Fund (PEF) is projected to be £150,000 less than the allocation from the Scottish Government of £1.864 million. It is anticipated that the projected under spend on teacher and support costs will be carried forward to 2025/26 to meet commitments. The budgets for the Pupil Equity Fund scheme are allocated by financial year, whereas expenditure is incurred by academic year. Children, Families and Justice 4.13 The projected outturn for Children, Families and Justice is £351,000 or 1.3% less than budget which represents a movement of £36,000 from the last update. The individual elements contributing to this position are summarised in the following table with narrative on the significant variances below. Projected Outturn MovementFunction £’000 % £’000 Children & Families Under spend (332) (1.5) 55 Justice Service Under spend (19) (0.4) (19) TOTAL Under spend (351) (1.3) 36 4.14 In Children and Families, there is a reduction in the projected under spend of £55,000 following an updating of updated projections relating to foster, kinship and adoption payments, partially offset by additional income and residential placements expenditure. 4.15 Within the Justice Service, there is a projected under spend of £19,000 due to additional staff slippage. Economy, Development and Planning 4.16 The projected outturn for Economy, Development and Planning is currently anticipated to be on target against budget which represents a movement of £30,000 from the last update. The individual elements contributing to this position are summarised in the following table with narrative on the significant variances below. Projected Outturn MovementFunction £’000 % £’000 Service Wide Under spend (175) (2.5) - Business and Investment Over spend 105 14.6 - Tourism, Culture and Place Over spend 250 2.3 100 Development Management and Building Standards Under spend (180) - (70) TOTAL On Target - - 30 4.17 In Tourism, Culture and Place, there is an increase in the projected over spend of £100,000 due to a shortfall in income. Page 18 of 104
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4.18 In Development Management and Building Standards there is an increase in the projected under spend of £70,000 due to additional planning & building warrant income. Environment and Infrastructure 4.19 The projected outturn for Environment and Infrastructure is currently anticipated to be £780,000 or 2.2% less than budget which represents a movement of £300,000 from the last update. The individual elements contributing to this position are summarised in the following table with narrative on the significant variances below. Projected Outturn MovementFunction £’000 % £’000 Service Wide Under spend (300) (1.7) - Traffic & Network Under spend (100) (9.2) (50) Street Lighting Partnership Under spend (100) (4.6) (100) Waste Disposal Under spend (500) (5.8) (150) Refuse Collection Over spend 100 2.2 - Fleet Over spend 120 - - TOTAL Under spend (780) (2.2) (300) 4.20 In Traffic and Network there is an increase in the projected under spend of £50,000 due to additional income from statutory road network charges. 4.21 Across the Street Lighting Partnership there is a projected under spend of £100,000 based on the latest maintenance projections. 4.22 Across Waste Disposal, there is an increase in projected under spend of £150,000. This is due to the receipt of additional income from the sale of recyclates (£200,000) and savings on the twin stream collection service (£50,000) partially offset by costs relating to essential depot and site works (£100,000). Housing and Communities 4.23 The projected outturn for Housing and Communities is currently anticipated to be £235,000 or 1.1% less than budget which represents a movement of £50,000 from the position last reported. The individual elements contributing to this movement are summarised in the following table with commentary on the significant movements below. Projected Outturn MovementFunction £’000 % £’000 Service Wide Under spend (310) (3.5) (100) Housing General Fund Over spend 90 1.1 50 Bereavement Services Over spend 15 1.9 - Public Transport Unit Under spend (30) (0.8) - TOTAL Under spend (235) (1.1) (50) Page 19 of 104
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4.24 On a Service Wide basis, there is an increase in the projected under spend of £100,000 due to updated staff cost projections. 4.25 In Housing General Fund, there is an increase in the projected over spend of £50,000 arising additional costs in supporting those affected by homelessness. Property Services 4.26 The projected outturn for Property Services is currently anticipated to be £470,000 or 0.7% more than budget which represents a movement of £80,000 from the position last reported. The individual elements contributing to this movement are summarised in the following table with commentary on the significant movements below. Projected Outturn MovementFunction £’000 % £’000 Service Wide Over spend 456 0.7 71 Energy Under spend (355) (4.3) (31) Maintenance Over spend 150 3.2 0 Facilities Management Over spend 389 6.2 50 Catering Under spend (170) (2.2) (170) TOTAL Over spend 470 0.7 (80) 4.27 On a Service Wide basis, there is a net increase in the projected over spend of £71,000 following an update on staff and other costs alongside income projections. 4.28 On Energy, there is an increase in the projected under spend of £31,000 due to updated rates and consumption information. 4.29 In Facilities Management, there is an increase in the projected over spend of £50,000 due to slippage in the implementation of the revised cleaning regime. 4.30 In Catering, there is an increase in the projected under spend of £170,000 due to a fall in the uptake of school meals and net savings from the strikes that took place in October 2024 offset by additional equipment purchases. Legal and Governance 4.31 Within Legal and Governance there is a projected under spend of £10,000 or 0.2% which represents a movement of £1,000. Customer and Digital Services 4.32 The projected outturn for Customer and Digital Services is currently anticipated to be £115,000 or 1.0% more than budget which represents a reduction of £4,000 from the last update. The individual elements contributing to this movement are summarised in the following table with commentary on the significant movements below. Page 20 of 104
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Projected Outturn Movement £’000 % £’000 IT Over spend 69 1.2 0 Revenues & Benefits Over spend 46 0.8 (4) TOTAL Over spend 115 1.0 (4) 4.33 In Revenues and Benefits there is a net reduction in the projected over spend of £4,000 due to updated projections on staff and income, partially offset by an increase in costs not recoverable from Housing Benefit. Strategic Planning and Performance 4.34 Within Strategic Planning and Performance, there is a projected under spend of £234,000 or 3.8% which represents an increase of £32,000 due to the accelerated delivery of approved savings. Finance and Business Support 4.35 The projected outturn for Finance and Business Support is currently anticipated to be £637,000 or 7.2% less than budget which represents an increase of £130,000 since the last update. The individual elements contributing to this movement are summarised in the following table with commentary on the significant variances below. Projected Outturn MovementFunction £’000 % £’000 Finance Under spend (76) (1.4) (45) Business Support Under spend (561) (15.7) (85) TOTAL Under spend (637) (7.2) (130) 4.36 In Finance, there is an increase in the projected under spend of £45,000 due to additional staff slippage and income. 4.37 Across Business Support, there is an increase in the projected under spends, primarily on staff costs due to the accelerated delivery of approved savings. Corporate Budgets 4.38 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. Health & Social care 4.39 On 19 March 2025, Perth and Kinross Integration Joint Board considered a report on the 2024/25 Financial Position (Report No. G/25/41 refers). After the application of earmarked Reserves and non-recurring funding, this report presented a projected over spend of £1.360 million. This position is consistent with many other integration joint boards who also face significant Page 21 of 104
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financial challenges in the current financial year. Further information on this position is set out in Appendix 3. 4.40 All of the projected over spend set out above (and in Appendix 3) relates to Health activity. Under the terms of the Integration Scheme, the Council is only exposed to the projected over spend in relation to Social Care. Therefore, all the projected over spend falls to NHS Tayside. 4.41 In addition, there is a projected over spend of £50,000 on non-delegated functions which is reflected in Appendix 1. This is primarily due to not achieving the slippage target and additional expenditure on IT related activity. Council Tax Reduction Scheme 4.42 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. 4.43 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. 4.44 In the current financial year, the Council is supporting approximately 8,600 households across Perth and Kinross with the Council Tax Reduction Scheme with an average award of £16.91 per week. This results in a projected over spend on the Council Tax Reduction Scheme of approximately £165,000 which is reflected in Appendix 1. Funding 4.45 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 4.46 The amount of income the Council will generate from Council Tax is dependent on two main factors, firstly the collection levels and secondly, the number of Band D properties on the Valuation Roll. 4.47 Monitoring of Council Tax collection levels is carried out monthly. The following graph sets out collection performance to 31 March 2025 together with prior year comparative figures for the previous five financial years. Page 22 of 104
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2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% In Year Collection to 31 March 4.48 Between 2019/20 and 2023/24, the average collection figure to 31 March was 97.08%. The actual collection figure to 31 March 2025 was 97.34% which is 0.26% more than the five-year average but 0.19% less than the comparable position in 2024. Despite the in year collection percentage being slightly down on last year, in terms of the amount of actual cash collected, this increased by more than £5.515 million. 4.49 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. Page 23 of 104
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4/1/2019 7/1/2019 10/1/2019 1/1/2020 4/1/2020 7/1/2020 10/1/2020 1/1/2021 4/1/2021 7/1/2021 10/1/2021 1/1/2022 4/1/2022 7/1/2022 10/1/2022 1/1/2023 4/1/2023 7/1/2023 10/1/2023 1/1/2024 4/1/2024 7/1/2024 10/1/2024 1/1/2025 4/1/2025 77,000 76,000 75,000 74,000 73,000 72,000 71,000 budget Band D Equivalents Council Tax - Number of Band D Equivalent Properties 4.50 Given the 2024/25 collection information set out above and the growth in the number of Band D equivalent properties, it is currently anticipated that Council Tax income will exceed the budget by £500,000 in the current financial year which is reflected in Appendix 1. Non-Domestic Rates 4.51 The actual collection rate to 31 March 2025 was 97.10%, compared to 96.46% for the same period in 2023/24. Again, for context, as well as increasing the in year collection rate, the Council also collected in excess of £3.849 million of non-domestic rates in 2024/25. Other Updates Arm’s Length External Organisations (ALEOs) 4.52 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. 4.53 Currently, for the current financial year, Live Active Leisure and Perth Theatre and Concert Hall are projecting deficits that are in line with their approved budgets. 4.54 As previously reported, Culture Perth and Kinross were projecting a deficit for 2024/25 that is more than the level originally budgeted. They have Page 24 of 104
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experienced additional costs in relation to the charitable arm of the organisation, particularly relating to the current year pay award, to historic equal pay claims and to the running costs of their establishments. 4.55 The Committee was previously advised that the potential deficit could be £170,000 more than budget and delegated authority to the Chief Finance Officer to provide additional financial support up to that amount if required. 4.56 Council officers have continued to work with Culture Perth and Kinross to provide support and challenge. Furthermore, measures have been implemented across Culture Perth and Kinross to, as far as possible, restrict all non-essential spend. These proactive measures have meant that the Council has been able to reduce the level of additional support required to £100,000. Approval is sought later in the report to apply the remaining balance of £70,000 to the Culture earmarked Reserve. 4.57 The long-term sustainability of the Council’s ALEOs across future financial years remains challenging. The Council’s Transformation and Change Programme includes a review of ALEOs, and the Council will be asked to consider options on future models of service delivery later this year. Tayside Contracts 4.58 On 10 March 2025, the Tayside Contracts Joint Committee considered their latest financial operating statement for the 9 months to 31 December 2024. 4.59 This statement set out a projected distributable surplus of £594,000 for the current financial year. This is made up of a £440,000 projected surplus in Construction, a projected break even position in Catering and projected surplus of £144,000 in Facilities Management. 4.60 An analysis of how income and expenditure compare with budget is set out in the following table. Projected Outturn £m Budget £m Variance £m Income 96.007 94.289 1.718 Direct Costs (79.627) 77.066 (2.561) Indirect Costs (15.786) 16.552 0.766 Distributable Surplus 0.594 0.671 (0.077) 4.61 It is anticipated that the Council will receive £244,000 of the distributable surplus which is less than the target that is independently set by the Council and this is reflected in Appendix 1. 4.62 During 2024/25, Tayside Contracts incurred non-recurring expenditure associated with restructuring of services. Had these costs not been incurred, the projected distributable surplus would have been almost £1 million which would have been available to be returned to the constituent Councils. The Page 25 of 104
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restructuring is expected to generate annual savings of approximately £543,000. 4.63 In addition to the distributable surplus identified above, Perth and Kinross Council will also receive a rebate of £326,000 from the Catering Division. This is a direct benefit of the revised invoicing arrangements agreed between Tayside Contracts and all three constituent Councils and is reflected in Appendix 1 under Property. Housing Revenue Account 4.64 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 5. 4.65 Within this projection, £455,000 has been applied from HRA earmarked Reserves to support the needs of tenants. 4.66 Across the Housing Revenue Account activity there is a net reduction in the projected under spend of £40,000. Within this movement, additional costs in relation to improvements and administration are partially offset by reduced costs in repairs. 4.67 As a result of the variances identified above Capital from Current Revenue will reduce by £40,000. 5. 2024/25 Revenue Budget Adjustments 2024/25 Additional Funding 5.1 Since elected members were provided with the 2024/25 Revenue Budget update on 5 February 2025 (Report No. 25/24 refers), notification has been received of additional resources in the current financial year from several sources as set out below. To ensure that the 2024/25 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. Scottish Government – Revenue Support Grant: SNCT Pay Offer: £7,000 (Education and Learning) Educational Psychologist Training: £19,000 (Education and Learning) 5.2 The Sottish Government has advised that the increase in Revenue Support Grant identified above of £26,000 will be made through a redetermination of the Council’s funding. It is therefore necessary to adjust budgets for Education and Learning and Revenue Support Grant. 5.3 ACTION: The Committee is asked to approve the adjustments set out at paragraph 5.1 which are reflected in Appendix 1 (Column 3) to this report. Page 26 of 104
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Other Funding 5.4 Other funding amounting to £368,668 has been 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. 5.5 ACTION: The Committee is asked to note the receipt of £368,668 of additional resources, with this funding being reflected within Economy, Development and Planning, Environment and Infrastructure and Housing and Communities as additional grant income. The current projected outturn assumes that all these additional resources will be fully expended in 2024/25 or will be carried forward under the terms of the grant award. 2024/25 Virements Contribution to/from Capital Fund 5.6 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. 5.7 The latest monitoring indicates a projected increase in capital financing costs (loan charges) of £3,000 based on the latest treasury management activity and a reduction of £302,000 in income from interest on revenue balances due to reduced cashflows. This will result in a reduced Contribution to the Capital Fund of £305,000 in the current financial year. 5.8 ACTION: The Committee is requested to approve the virement of £3,000 to the Capital Financing Costs (Loan Charges) Budget and £302,000 to Interest on Revenue Balances with a corresponding reduction in the projected Contribution to the Capital Fund. These adjustments have been reflected in Appendix 1 (Column 4) to this report. Service Virements 5.9 To ensure that the 2024/25 Management Revenue Budget continues to reflect current Service needs and operational requirements there are several virements that are reflected in Appendix 1 (column 4) that have been processed in line with the Scheme of Administration. 5.10 This includes a proposal to transfer a refund of £292,000 for insurance on the investment in learning estate to the Council’s own Insurance Fund to mitigate against rising costs. 2024/25 Movements in Reserves 5.11 Included at Appendix 6 is an update on the Council’s General Fund Reserves which includes the following: Page 27 of 104
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Earmarked and unearmarked Reserves at 31 March 2024 (per unaudited Annual Accounts). previously approved contributions to and from earmarked Reserves in 2024/25. 2025/26 and 2026/27. The impact of proposals within this report on earmarked Reserves. The impact of the latest revenue monitoring on the level of unearmarked Reserves. 5.12 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. 5.13 Going forward 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 Under Statute / Regulation 5.14 Approval is sought to draw down resources of £139,000 from the Revenue Grants earmarked Reserve, specifically in relation to the Green Capital Recovery Fund. Approval is also sought to return £36,000 to the Council Tax Income for Affordable Housing earmarked Reserve due to a rephasing of the Empty Homes Initiative. 5.15 ACTION: The Committee is asked to approve the transfer of £139,000 from Revenue Grants to Economy, Development and Planning and £36,000 from the Council Tax Income for Affordable Housing earmarked Reserve to Housing & Communities. These adjustments are reflected in Appendix 1 (Column 5) to the report. Balances Held for Specific (Previously Approved) Purposes 5.16 These earmarked Reserves have previously been approved by elected members in their consideration of the Reserves Strategy or Annual Accounts. 5.17 Specifically, authority is sought to transfer: £49,000 from Education and Learning to the School Counsellor earmarked Reserve. £485,000 for the projects listed in Appendix 7 to the Council Approved Revenue Budget Flexibility. Page 28 of 104
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£166,000 from Economy Development and Planning to the Culture earmarked Reserve. £32,000 to Property from the Cemetery Walls earmarked Reserve. from Services to the Transformation and Workforce Management earmarked Reserve in line with actual spending profiles. 5.18 ACTION: The Committee is asked to approve the transfer to / from earmarked Reserves set out in paragraph 11.7 above. These adjustments are reflected in Appendix 1 (Column 5) to the report. Balances Held for Other Purposes 5.19 Approval is sought for several adjustments relating to the earmarked Reserve for Transformation and Workforce Management as follows: £189,000 from the earmarked Reserve to fund workforce management costs that deliver recurring savings. £73,000 to the earmarked Reserve to reflect updated expenditure plans for the Procurement and Finance Transformation projects. 5.20 Approval is also sought for several adjustments relating to the earmarked Reserve for Anti-Poverty as follows: £101,000 to the earmarked Reserve to reflect updated spending plans. 5.21 ACTION: The Committee is asked to approve the adjustments to the Transformation and Workforce Management and Anti-Poverty earmarked Reserves set out in paragraphs 5.18 and 5.19. These adjustments are reflected in Appendix 1 (Column 5) to the report. Approach for Financial Support – Perth 125 Live 5.22 During 2025, Perth Theatre and Concert Hall will commemorate two significant anniversaries. Firstly, Perth Theatre came into existence 125 years ago, secondly Perth Concert Hall, 20 years ago. 5.23 The Council has been approached for funding of £75,000 to support a large scale outdoor event in September 2025. This will supplement funding already committed by Creative Scotland and the Gannochy Trust as well as sponsorship by St. Johnstone Football Club. 5.24 It is proposed that this is funded from unearmarked Reserves which based on Appendix 6 are projected to exceed 4% at 31 March 2025. 5.25 ACTION: The Committee is asked to approve funding for Perth 125 Live with a contribution from unearmarked Reserves. 5.26 The Committee was previously advised that an insurance claim had been submitted for the cost associated with the cancellation of the November 2024 Page 29 of 104
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Christmas Light switch on. The Council has now received notification that the claim has been approved and the sum of £97,000 will be paid. As previously agreed by the Committee, when received, this amount will be applied to an earmarked reserve for future events to augment activity in the future. Unearmarked Reserves 5.27 Based on the latest information, the level of unearmarked Reserves at 31 March 2025 is projected to be £19.486 million or 4.2%. This position will change as the final outturns for 2024/25 become available for the Annual Accounts. 5.28 The Reserves Strategy sets out arrange of between 2% and 4%. Should the final level of unearmarked Reserves exceed the 4% range, approval is sought to apply the excess to a new earmarked Reserve to support Communities. This will be included within the unaudited Annual Accounts that will be considered by the Audit and Risk Committee in June 2025 and confirmed at the meeting of the Finance and Resources Committee in September 2025. 6. 2025/26 Revenue Budget 2025/26 Additional Funding 6.1 Since the 2025/26 Revenue Budget was approved on 26 February 2025 (Report No. 25/36 refers), the Council has been advised of get update on 5 February 2025 (Report No. 25/24 refers), notification has been received of the following additional resources. To ensure that the 2025/26 Management Budget continues to reflect the operational requirements of the Council, several adjustments are required, which are summarised below and included in Appendix 9 and Appendix 6. Scottish Government – Revenue Support Grant: Employers National Insurance Contribution: £3.915 million Scottish Government – Ring Fenced Grant: Justice Social Work Grant: £1.922 million (Children, Families and Justice) 6.2 The Scottish Government has advised that the increase in funding identified above of £5.837 million will be made through a redetermination of the Council’s funding. 6.3 ACTION: The Committee is asked to approve the adjustments set out at paragraph 6.1 which are reflected in Appendix 9 (Column 3) to this report. Page 30 of 104
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Other Funding 6.4 Other funding amounting of £1.140 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. 6.5 ACTION: The Committee is asked to note the receipt of £1.140 million of additional resources, with this funding being reflected within Children, Families and Justice as additional grant income. The current projected outturn assumes that all these additional resources will be fully expended in 2025/26 or will be carried forward under the terms of the grant award. 2025/26 Virements 6.6 To ensure that the 2025/26 Management Revenue Budget continues to reflect current Service needs and operational requirements there are several virements that are reflected in Appendix 1 (column 4) that have been processed in line with the Scheme of Administration. 2025/26 Movements in Reserves 6.7 There are a several adjustments set out above, where resources were applied to Reserves in 2024/25 that require to be drawn down in 2025/26 which are summarised as: School Counsellors - £49,000 Procurement and Finance Transformation - £73,000 Council Approved Budget Flexibility - £485,000 Anti Poverty - £101,000 6.8 In addition, approval is sought to apply £140,000 from the Transformation and Workforce Management earmarked Reserve to for additional short-term capacity to support the Leadership Phase 2 Review (£70,000 in 2025/26 and £70,000 in 2026/27). This will include elements of organisational development and design with a key focus on cultural change and improving individual and organisational effectiveness. This investment will support delivery of the £1.6 million savings target that is due to be delivered for April 2026. 6.9 ACTION: The Committee is asked to approve the adjustments set out at in paragraphs 6.7 and 6.8 which are reflected in Appendix 9 (Column 5) to this report. 6.10 An opportunity has arisen for the Council to purchase a piece of land to the front curtilage of the former Crieff Primary School for £125,000 which will allow for the redevelopment of the site for affordable housing. It is proposed that this is funded by a contribution from the Council Tax Income for Affordable Housing earmarked Reserve in 2025/26. Page 31 of 104
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6.11 ACTION: The Committee is asked to approve the transfer of £125,000 from the Council Tax Income for Affordable Housing earmarked Reserve to Economy, Development and Planning which is reflected in Appendix 9 (Column 5) to this report. 7. Financial Risks 7.1 In preparing the Council's 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. 7.2 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. 7.3 Risks are captured within the body of the report with a summary being maintained in Appendix 8. 7.4 Given the latest revenue monitoring position, which is set out in this report, the risks to 2024/25 have been removed or reduced. 7.5 Going forward, risks to the 2025/26 Revenue Budget and beyond will be captured with mitigating actions identified. 8. Best Value Audit Report 8.1 The Council has an outstanding Best Value Assurance Report action in relation to longer term financial planning covering a five to ten year period. Should the Committee be minded to accept the recommendation set out below at paragraph 8.5, this will deal with this action and satisfy the requirements of Audit Scotland. 8.2 There are limited resources available in the public domain that the Council can rely on to inform longer term financial planning with varying degrees of certainty. 8.3 However, notwithstanding this, the Council does have a suite of measures in place to support its approach to longer term financial planning as follows: Three year revenue budgets covering financial years 2025/26, 2026/27 and 2027/28. A six year Medium Term Financial Plan through to 2030/31 that is updated annually. A six year funded Capital Budget through to 2030/31. A thirty year Capital Investment Plan through to 2054/55. Capital Fund monitoring, including the modelling of the capacity to fund the Capital Budget through to the late 2070s. Page 32 of 104
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8.4 It is the view of the Chief Finance Officer that this information is sufficient in order to provide elected members with information and confidence on the Council’s finances over the longer term. 8.5 ACTION: The Committee is asked to confirm the Council’s approach to medium to longer term financial planning. 8.6 In addition, the Best Value Audit Report suggested a review of the Community Planning Partnership (CPP). The review involved several steps including, a review of data and intelligence including community impact assessments to help inform the new Local Outcome Improvement Plan (LOIP) in 2022. Following this a CPP self-assessment was carried out and a CPP risk profile was developed in 2023. This led to further work in 2024 to revise the CPP priorities and agree on the new CPP governance arrangements, with an update to the LOIP in early 2025. This will strengthen and improve governance and the accountability process for the work of the CPP going forward and ensure that the CPP is working together to achieve collective goals and priorities for the community. 9. Conclusion 9.1 This report provides an update on the financial performance of Perth and Kinross Council for 2024/25. The report highlights a projected net under spend of £2.737 million. Key areas contributing to this underspend include Education and Learning, Children, Families and Justice, and Environment and Infrastructure. 9.2 The report also outlines several adjustments to the 2025/26 Revenue Budget, including additional funding from the Scottish Government and various virements to ensure the budget aligns with current service needs. 9.3 Financial risks are identified and mitigated through detailed budget monitoring and the availability of general fund balances. 9.4 The latest monitoring indicates that the Council will have unearmarked General Fund balances of £19.486 million or 4.2% on 31 March 2025. 9.5 In conclusion, the Council's proactive financial management has resulted in a favourable projected outturn for 2024/25, with strategic adjustments and risk mitigation measures in place to support future financial stability. 9.6 The report recommends approval of the proposed budget adjustments and notes the importance of continued vigilance in managing financial risks. 10. Impact and Value Assessment Impact and Value Assessment Page 33 of 104
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11. Appendices 11.1 Appendix 1 – 2024/25 Management Budget 11.2 Appendix 2 – General Fund 2024/25 Projected Outturn – Service Analysis 11.3 Appendix 3 – Perth & Kinross IJB 2024/25 outturn 11.4 Appendix 4 – Housing Revenue Account 2024/25 Projected Outturn 11.5 Appendix 5 – Other Fundings 11.6 Appendix 6 – General Fund Balances 11.7 Appendix 7 – Council Approved Revenue Budget Flexibility 2024/25 11.8 Appendix 8 – Financial Risks 11.9 Appendix 9 – 2025/26 Management Budget Page 34 of 104
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(1) (2) (3) (4) (5) (6) (7) (8) (9) 2024/25 Previously Movements Virements Movements 2024/25 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 and Learning 166,774 4,071 26 (11) (49) 170,811 169,659 (1,152) (0.7%) Children, Families and Justice 25,284 1,757 (5) 27,036 26,685 (351) (1.3%) Economy, Development and Planning 13,901 3,937 (140) (57) 17,641 17,641 0 0.0% Environment and Infrastructure 34,666 689 (28) (86) 35,241 34,461 (780) (2.2%) Housing and Communities 17,878 4,584 96 (231) 22,327 22,092 (235) (1.1%) Property Services 65,471 1,007 (180) 32 66,330 66,800 470 0.7% Legal and Governance 4,381 178 42 (81) 4,520 4,510 (10) (0.2%) Customer and Digital Services 10,302 1,548 168 (101) 11,917 12,032 115 1.0% Strategic Planning, People and Performance 5,948 167 (64) (148) 5,903 5,669 (234) (4.0%) Projects and Programmes 131 341 (111) 361 361 0 0.0% Finance and Business Support 8,227 661 (5) (13) 8,870 8,233 (637) (7.2%) Directorate Core Costs 1,003 2 189 1,194 1,194 0 0.0% Sub - Total: Service Budgets 353,966 18,942 26 (238) (545) 372,151 369,337 (2,814) (0.8%) SECTION 2 Corporate Budgets Health and Social Care 87,498 8,452 (54) (5) 95,891 95,941 50 0.1% Contribution to Valuation Joint Board 1,466 1,466 1,466 0 0.0% Capital Financing Costs 16,628 1,862 3 18,493 18,493 0 0.0% Interest on Revenue Balances (5,411) (265) 302 (5,374) (5,374) 0 0.0% Net Contribution to/(from) Capital Fund 6,710 (1,597) (305) 4,808 4,808 0 0.0% Contribution to/(from) Insurance Fund 200 200 292 692 692 0 0.0% Trading Operations Surplus (550) (550) (244) 306 55.6% Support Service External Income (2,238) 0 (2,238) (2,238) 0 0.0% Tayside Pension Fund 1,655 1,655 1,711 56 3.4% Apprenticeship Levy 956 956 956 0 0.0% Pay Award 0 0 0 0 0 0.0% Leadership and Procurement (1,505) 1,113 (392) (392) 0 0.0% Council Tax Reduction Scheme 7,400 7,400 7,565 165 2.2% Discretionary Relief 1,104 1,104 1,104 0 0.0% Net Expenditure (General Fund) 467,879 28,707 26 0 (550) 496,062 493,825 (2,237) (0.5%) PERTH & KINROSS COUNCIL GENERAL FUND 2024/25 REVENUE BUDGET - SUMMARY Appendix 1 5 Page 35 of 104
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(1) (2) (3) (4) (5) (6) (7) (8) (9) 2024/25 Previously Movements Virements Movements 2024/25 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 % PERTH & KINROSS COUNCIL GENERAL FUND 2024/25 REVENUE BUDGET - SUMMARY Appendix 1 SECTION 3 Funding Revenue Support Grant (275,985) (15,135) (26) (291,146) (291,146) 0 0.0% Ring Fenced Grant (3,806) 0 (3,806) (3,806) 0 0.0% Non Domestic Rate Income (65,152) (203) (65,355) (65,355) 0 0.0% Council Tax Income (107,517) (107,517) (108,017) (500) (0.5%) Capital Grant (1,600) (139) (1,739) (1,739) 0 0.0% Total Financing (454,060) (15,477) (26) 0 0 (469,563) (470,063) (500) (0.1%) Financed from/(returned to) Reserves 13,819 13,230 0 0 (550) 26,499 23,762 (2,737) Page 36 of 104
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APPENDIX 2 PERTH AND KINROSS COUNCIL - GENERAL FUND 2024/25 PROJECTED OUTTURN - SERVICE ANALYSIS (Based on Expenditure to 31 January 2025) Variance Variance £'000 £'000 EDUCATION AND LEARNING Total (1,152) NON DEVOLVED Education and Learning Core (23) Staff slippage over and above budgeted target due to delay in filling post and projected under spend on clothing grant. Nursery Sector (1,573) Projected additional slippage due to turnover of staff and lower than anticipated staffing required for deferred places, lower projected costs for Partner Provider placements and early delivery of agreed savings. Primary Sector 878 Slippage target currently not being met within primary sector partly due to Scottish Government directive of maintaining teacher numbers and the requirement to have a teacher in front of class at all times. Secondary Sector (677) Projected under spend due to reduction in required funding following drop in pupils numbers and planned slippage partially offset by increased loan charges. Special Sector (512) Additional slippage due to turnover of staff and challenges in recruitment of posts in particular pupil support assistants and utilisation of one off funding. 414 Projected over spend on independent special schools due to increased number of placements. Home to School Transport 341 Projected overspend on Home to School transport due to increased costs following ASN placements and contract changes. Movement due to costs reductions following strike days and school closures for Storm Eowyn. DEVOLVED SCHOOL MANAGEMENT SCHEME (DSM) (235) There is a projected under spend on the DSM scheme of £235,000 or 0.3% across 80 schools and early learning and childcare settings. Schools are finding slippage targets and increasing costs challenging to manage and this is impacting on the resource spend in schools. This has been impacted by the Scottish Government freeze on teacher numbers and per capita budgets allocations have not increased since a 25% reduction was agreed in 2016/17. Inflation has risen by 37% in the same period. 235 Projected carry forward of Devolved School Management. PUPIL EQUITY FUND (150) At this time £150,000 is projected to be carried forward into 2025/26 for teacher and support staff costs to the end of the current academic year. 150 Projected carry forward of Pupil Equity Funding. CHILDREN, FAMILIES AND JUSTICE Total (351) Children and Families (107) Projected under spend due to additional income for Children Alone Seeking Asylum placements and Wellbank . (615) Projected under spend on foster, kinship and adoption in part due to reduction in overall placements in foster carers. 390 Projected over spend on residential placements due to additional placements in excess of budget . Justice Service (19) Small underspend due to slippage on spending plan ECONOMY, DEVELOPMENT AND PLANNING Total 0 Service Wide (175) Projected slippage across Economy, Development and Planning in excess of budgeted target. Business and Investment 70 Perth Harbour - projected increase in operating costs /shortfall in income. 35 Additional legal costs within Estates. Tourism, Culture and Place 150 Savings delayed due to the ongoing review of our cultural and leisure ALEOs. 100 Shortfall in events income due to cancellation of Christmas event which resulted in sponsorship monies unable to be claimed. Development Management and Building Standards 40 Projected over spend on legal costs associated with planning appeals. (220) Projected additional planning and building warrant income based on income trend to date. SERVICE Summary of Service Variances 5 Page 37 of 104
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APPENDIX 2 PERTH AND KINROSS COUNCIL - GENERAL FUND 2024/25 PROJECTED OUTTURN - SERVICE ANALYSIS (Based on Expenditure to 31 January 2025) Variance Variance £'000 £'000SERVICE Summary of Service Variances ENVIRONMENT AND INFRASTRUCTURE Total (780) Service Wide (300) Projected slippage across Environment and Infrastructure in excess of budgeted target. Traffic and Network (100) Projected additional income from statutory road network works. Street Lighting Partnership (100) Projected under spend on street lighting maintenance Direct Services - Waste Disposal (200) Projected saving on the waste disposal contract as a result of the new twin-streaming collection. (500) Projected additional income from sale of recyclates as a result of the new twin-streaming collection. 200 Additional costs relating to essential depot and site works Direct Services - Refuse Collection 200 Projected net shortfall in commercial waste income (100) Projected saving on fuel Direct Services - Fleet 120 Projected additional cost of vehicle materials and repairs. HOUSING AND COMMUNITIES Total (235) Service Wide (350) Projected slippage across Housing and Communities in excess of budgeted target. 40 Projected shortfall in sales ledger bad debt provision Housing General Fund 5 Void rent loss for housing support properties. 100 Projected increase in homeless costs including bad debts and energy costs, also increased property setup costs.. (15) Reduction in 3rd party payments Bereavement Services 15 Projected over spend on loan charges. Public Transport Unit 40 Projected overspend on tendered service (70) Projected additional income from park and ride departure charges PROPERTY SERVICES Total 470 Service Wide (174) Projected shortfall in excess of slippage target 357 Projected shortfall due to delays in delivering the Pullar House saving partially offset by an under spend on water, additional costs in relation to grounds maintenance, rates and tree works. 110 Projected various under / over spends on supplies and services, third party payments and capital financing costs. 163 Projected reduction in income from capital recharges (£137,000) and RHI Income (£108,000) partially offset against Pullar House cost sharing Income (£82,000). Energy (355) Projected reduction in energy costs due to reduced rates and consumption. Maintenance 150 Projected increase in costs associated with the transfer of Bell's Sports Centre Facilities Management 389 Delay in implementing new cleaning schedule required to achieve £406,000 Tayside Contract approved saving. This was due to the requirement to consult with trade unions. Implemented reduced cleaning days for schools from August 2024. Office cleaning to be delayed and with revised schedules set to commence in 25/26 Catering (170) The projected number of additional meals has reduced to reflect more closely the full year projected meal take up figures. In addition the underspend reflects the reduced meals due to strikes offset by required spend on equipment replacements. Page 38 of 104
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APPENDIX 2 PERTH AND KINROSS COUNCIL - GENERAL FUND 2024/25 PROJECTED OUTTURN - SERVICE ANALYSIS (Based on Expenditure to 31 January 2025) Variance Variance £'000 £'000SERVICE Summary of Service Variances LEGAL AND GOVERNANCE Total (10) 105 Projected shortfall against slippage 44 Projected over spend on supplies and services (159) Projected additional income across Legal and Governance CUSTOMER AND DIGITAL SERVICES Total 115 IT 69 Projected over spend on staff costs Revenues and Benefits (178) Projected under spend on staff costs 98 Projected over spend on supplies and services including printing, interpreter services and GDPR module (88) Projected additional statutory additions income, offset against and under recovery in Registrars & benefit admin grant 214 Projected shortfall due to increased Service Charges from Social Housing Providers that are not covered by Housing Benefit Subsidy STRATEGIC PLANNING, PEOPLE AND PERFORMANCE Total (234) (234) Projected net under spend on staff costs, supplies and services and income. PROJECTS AND PROGRAMMES Total 0 0 No material variances at present FINANCE AND BUSINESS SUPPORT Finance Total (637) (76) Projected net underspend on staff costs, supplies and services and income. Business Support (561) Projected under spend on staff costs due to non-filling of vacancies in advance of delivering 2025/26 approved savings. DIRECTORATE CORE COSTS Total 0 TOTAL (2,814) Page 39 of 104
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APPENDIX 3 Perth and Kinross Health and Social Care Partnership Projected outturn based on Revenue Monitoring to 31 December 2024 Social Care Health Health & Social Care Partnership £'000 £'000 £'000 DEVOLVED FUNCTIONS Older People Services 1,650 1,325 2,975 Adult Services 1,917 (618) 1,299 Other Community Services (51) 0 (51) Management/Commissioned/Other (4) (327) (331) Budget Deficit 2,097 175 2,272 Sub Total - Hospital & Community Health 5,609 555 6,164 P&K IJB Lead Partner 0 (1,331) (1,331) Dundee & Angus Hosted Services Recharges In/Out 0 1,846 1,846 Sub Total - Lead Partner Arrangement 0 515 515 GP Prescribing / Other Family Health Services 0 2,200 2,200 General Medical Services / Family Health Services 0 144 144 Sub Total - PKHSCP 5,609 3,414 9,023 Approved Use of General Reserves in 2024/25 (1,286) (158) (1,444) Approved Earmarked Reserves & Other 2024/25 Non-Recurring Funding (800) (884) (1,684) Application of Remaining General Reserves (3,123) (82) (3,205) Financial Recovery Measures (400) (930) (1,330) Total Projected Outturn Perth & Kinross HSCP 0 1,360 1,360 NON - DEVOLVED FUNCTIONS 50 50 Projected Out-turn Over / (Under) Spend 5 Page 41 of 104
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APPENDIX 4 PERTH & KINROSS COUNCIL - HOUSING REVENUE ACCOUNT 2024/25 PROJECTED OUTTURN (Based on expenditure to 31 January 2025) £'000 585 Housing Repairs Projected over spend in repairs primarily due to resolving the backlog (£530,000), energy costs (£35,000), transport costs (£50,000) and external voids (£30,000). These projected over spends have been partially offset by reduced costs in Electrical Inspection Condition Report (EICR) costs (£60,000). 50 Improvements Cost of RAAC Surveys (£120,000) and EPC contract (£30,000) partially offset by additional OFGEM income (£100,000), 103 Letham, North & South Projected increase in costs arising from garden maintenance contract (£113,000), energy (£8,000), property costs (£35,000). These are partially offset by projected under spends in tenants participation (£40,000), cleaning (£8,000) and non-domestic rates (£5,000). 25 Perth City and Specialist Projected over spends on property costs (£20,000) and disturbance payments (£5,000). (405) Administration Projected under spend on bad debt provision based on latest assessment of arrears (£750,000), projected slippage across HRA in excess of slippage target (£200,000) and projected underspend on non-domestic rates (£25,000) . These are partially offset by additional property costs relating to void council tax (£160,000) and insurance (£115,000), void rents loss (£135,000), additional costs relating to corporate recharges (£100,000) and increased sales ledger bad debt provision (£60,000). (460) Income Projected additional income from mainstream rents (£220,000), garages and lock-ups (£25,000) and Interest on Revenue Balances (£250,000). These are partially offset by reduced income from commercial rent (£35,000). 102 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. 455 Additional HRA non-recurring spend - - Improvements Team: £131,000 - Housing Repairs: £81,000 - Housing Enablement: £60,000 - Gypsy Travellers: £31,000 - Repairs and Maintenance: £152,000 (455) Proposed to draw down from HRA earmarked reserves 0 Summary of Service Variances 5 Page 43 of 104
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APPENDIX 5 Other Grant Funding 2024/25 Economy, Development and Planning Energy Saving Trust - Contactless Compliance Grant £118,968 Environment and Infrastructure Scottish Government - 20 MPH Speed Limits £100,000 Housing and Communities UK Government - Homes for Ukraine £149,700 TOTAL £368,668 2025/26 Children, Families and Justice Scottish Government - Offender Services £1,140,253 TOTAL £1,140,253 5 Page 45 of 104
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Appendix 6 General Fund Reserves Update Proposals Included in Report Proposals Included in Report Commit- ments Balance 31/3/24 24/25 25/26 26/27 24/25 Future £m £m £m £m £m £m £m £m General Fund Balance 83.793 Balances Held Under Statute / Regulation - Revenue Grants (17.337) 7.932 0.139 (9.266) - Council Tax Income for affordable housing (5.609) 1.408 (0.283) (0.283) (0.036) (4.803) - Developers Contributions: Affordable Housing (5.237) (5.237) - Car Parking (1.532) 0.540 (0.992) - Developers Contributions: Commuted Sums (1.218) (1.218) - Service Concessions (17.262) 4.000 13.262 0.000 - Devolved School Management (0.501) 0.501 0.000 Sub total (48.696) 14.381 (0.283) (0.283) 0.103 0.000 13.262 (21.516) Balances Held for Specific (Previously Approved) Purposes - Council Approved Revenue Budget Flexibility (1.635) 0.585 (0.485) 0.485 0.730 (0.320) - Feasibility 0.000 0.000 (0.100) (0.100) 0.200 0.000 - Culture (0.857) 0.561 (0.166) 0.121 (0.341) - School Estate (2.164) 1.902 0.262 0.000 - Works Maintenance (0.200) (0.200) - Community Resilience (0.175) 0.175 0.000 - Climate Change (0.205) 0.110 (0.095) - Financial Assistance (Mod) (0.020) (0.020) (0.020) (0.020) (0.080) - Project Feasibility Fund (Covid-19) (0.081) 0.062 (0.019) - Modern Apprentice Scheme (0.367) 0.340 0.027 0.000 - Cemetery Walls (0.262) 0.150 0.076 0.032 0.004 (0.000) - Salix (0.102) 0.102 0.000 - Local Area Partnerships (0.046) 0.046 0.000 - Community Investment Fund (0.087) 0.020 0.067 0.000 - Local Government Elections (0.053) (0.053) (0.053) (0.053) 0.212 0.000 Approved Contributions from / (to) Reserves 5 Page 47 of 104
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Appendix 6 General Fund Reserves Update Proposals Included in Report Proposals Included in Report Commit- ments Balance 31/3/24 24/25 25/26 26/27 24/25 Future £m £m £m £m £m £m £m £m Approved Contributions from / (to) Reserves - PH20 (0.062) 0.062 0.000 - Working Smarter (Covid-19) (0.115) 0.115 0.000 - School Counsellors (0.329) 0.227 0.102 (0.049) 0.049 0.000 - Ventilation Measures (0.076) 0.076 0.000 - Services for Children, Young People & Families (0.281) 0.281 0.000 Sub total (7.117) 4.593 0.005 (0.173) (0.668) 0.534 1.771 (1.055) Balances Held for Other Purposes 0.000 - Transformation & Workforce Management (7.606) 2.751 0.060 0.116 0.108 0.241 (4.330) - Anti - Poverty (1.664) 0.698 0.235 (0.101) 0.101 (0.731) Sub total (9.270) 3.449 0.295 0.000 0.015 0.209 0.241 (5.061) Earmarked Reserves (65.083) 22.423 0.017 (0.456) (0.550) 0.743 15.274 (27.632) Uncommitted General Fund Balance 18.710 Use of unearmarked Reserves in setting Budgets (2.249) (25/26 £(0.503m); 26/27 £2.476m Impact of Current Year Projected Outturn 2.737 Impact of Current Year Decisions 0.363 Impact of proposals within this report (0.075) Updated Unearmarked General Fund Balance 19.486 Percentage of Net Revenue Budget 4.2% Page 48 of 104
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APPENDIX 7 Council Approved Revenue Budget Flexibility 2024/25 Environment & Infrastructure Flood Resilience £22,000 Minibus Disposal Project £44,000 Road Sign Visibility £20,000 Housing and Communities Buses 2030 £91,000 Community Asset Transfer Pilot Fund £104,000 Health and Social Care Mental Health Groups £5,000 Strategic Planning, People and Performance Locality Working £133,000 Pay Audit £15,000 Economy, Development and Planning Civic Events £30,000 Legal and Governance Case Management System £21,000 Total £485,000 5 Page 49 of 104
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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 Ceasing of additional Financial Insecurity Funding on 31 March 2025. - Proactive management - Revenue monitoring - Future budget submissions 4 Support for Tayside Contracts - Tayside Contracts Governance & Strategy Group - Revenue monitoring - Future budget submissions 6 Funding to Health & Social Care - Proactive management - Revenue monitoring - Future budget submissions 5 Page 51 of 104
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(1) (2) (3) (4) (5) (6) 2025/26 Previously Movements Virements Movements 2025/26 Council Approved in in Revised Approved Adjustments Funding Reserves Mgt Budget (Net) Budget £'000 £'000 £'000 £'000 £'000 £'000 SECTION 1 Service Budgets Education and Learning 178,397 49 178,446 Children, Families and Justice 24,415 1,922 (121) 26,216 Economy, Development and Planning 14,857 230 15,087 Environment and Infrastructure 31,049 86 31,135 Housing and Communities 18,772 100 195 19,067 Property Services 65,316 121 65,437 Legal and Governance 4,898 81 4,979 Customer and Digital Services 12,466 75 101 12,642 Strategic Planning, People and Performance 6,159 (175) 218 6,202 Projects and Programmes 527 527 Finance and Business Support 8,521 10 13 8,544 Directorate Core Costs 570 (10) 560 Sub - Total: Service Budgets 365,947 0 1,922 0 973 368,842 SECTION 2 Corporate Budgets Health and Social Care 106,313 5 106,318 Contribution to Valuation Joint Board 1,421 1,421 Capital Financing Costs 18,914 18,914 Interest on Revenue Balances (3,936) (3,936) Net Contribution to/(from) Capital Fund 5,331 5,331 Contribution to/(from) Insurance Fund 4,000 4,000 Trading Operations Surplus (550) (550) Support Service External Income (2,323) (2,323) Tayside Pension Fund 1,711 1,711 Apprenticeship Levy 956 956 National Insurance Funding (2,800) 2,800 0 Leadership and Procurement (305) (305) Council Tax Reduction Scheme 7,400 7,400 Discretionary Relief 1,104 1,104 Net Expenditure (General Fund) 503,183 0 4,722 0 978 508,883 SECTION 3 Funding Revenue Support Grant (304,896) (3,915) (308,811) Ring Fenced Grant (1,967) (1,922) (3,889) Non Domestic Rate Income (63,537) (63,537) Council Tax Income (119,157) (119,157) Capital Grant (1,600) (1,600) Total Financing (491,157) 0 (5,837) 0 0 (496,994) Financed from/(returned to) Reserves 12,026 0 (1,115) 0 978 11,889 PERTH AND KINROSS COUNCIL GENERAL FUND 2025/26 REVENUE BUDGET - SUMMARY Appendix 9 5 Page 53 of 104
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Our vision is a Perth and Kinross where everyone can live life well, free from poverty and inequality ___________________________________________________________________ Committee or Board: Finance and Resources Committee Date of Meeting: 30 April 2025 Report Title: Composite Capital Budget 2024/30 and Housing Investment Programme 2024/29 – Monitoring Report No.4 Report Number: 25/100 Report Author: John Jennings, Senior Accountant James Salisbury, Accountant Organisational Lead: Scott Walker, Chief Finance Officer ___________________________________________________________________ 1. Purpose 1.1 This report provides a summary position to date for the 6-year Composite Capital Budget for 2024/25 to 2029/30 and the 5-year Housing Investment Programme for 2024/25 to 2028/29 and seeks approval for adjustments to the programmes. 1.2 Sections 1. Purpose 2. Recommendations 3. Background 4. Composite Capital Programme – Gross Capital Resources 5. Composite Capital Programme – Expenditure 6. Housing Investment Programme 7. Budget Overview 8. Impact and Value Assessment 9. Appendices 2. Recommendations It is recommended that the Committee: 2.1 notes the contents of the report. 6 Page 55 of 104
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2.2 approves the proposed adjustments to the six-year Composite Capital Budget 2024/25 to 2029/30 set out in Sections 5 and 6 of the report and summarised in Appendices I and II. 2.3 approves the proposed adjustments to the Housing Investment Programme Budget 2024/25 to 2028/29 set out in Section 7 of the report and summarised in Appendix III. 2.4 notes progress with the delivery of major Capital projects as summarised in Appendix IV. 3. Background 3.1 The Finance and Resources Committee approved an updated six-year gross Composite Capital Budget for 2024/25 to 2029/30 totalling £623.577 million and a five-year gross Housing Investment Programme for 2024/25 to 2028/29 totalling £96.917 million at its meeting on 5 February 2025 (report 25/25 refers). The Council subsequently approved an updated Composite Capital Budget for 2024/25 to 2029/30 totalling £635.475 million at its meeting on 26 February 2025 (report 25/37 refers). 3.2 This report advises on expenditure to 31 January 2025, and the latest estimate of the projected outturn for each of the years to 2029/30 for the Composite Programme and 2028/29 for the Housing Investment Programme. 4. Composite Capital Programme – Gross Capital Resources 4.1 As a result of the latest monitoring exercise, 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 six years 2024/25 to 2029/30 amount to £635.464 million. 4.2 Movements from the revised Composite Capital Budget approved on 26 February 2025 for the six 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 26 Feb 2025 Current Estimate Movement £m £m £m 2024/25 164.263 151.879 (12.384) 2025/26 134.707 147.463 12.756 2026/27 135.620 131.218 (4.402) 2027/28 88.558 90.468 1.910 2028/29 64.654 65.909 1.255 2029/30 47.673 48.527 0.854 Total 635.475 635.464 (0.011) Page 56 of 104
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4.3 The reduction in resources in the current monitoring exercise can be summarised as follows: Total £m Increase in Scottish Government Grant (Section 4.4) 1.485 Reduction in Commercial Property Receipts (Section 4.5) (0.094) Increase in Resources carried forward to future years (Section 4.5) (0.770) Increase in Ring Fenced Capital Receipts (Section 4.5) 0.004 Increase in Third Party Contributions (Section 4.6) 0.327 Increase in Revenue Contributions (Section 4.6) 0.041 Reduction in Borrowing Requirement (Section 4.7 and 4.8) (1.004) Increase in Gross Capital Resources (Section 4.3) (0.011) 4.4 The Scottish Government Capital Grant for 2025/26 has increased by £1.485 million since the provisional allocations used in setting the budget were announced. This increase relates to additional allocations for Climate Change (£1.274 million), Nature Restoration (£80,000) and Active Travel (£131,000). These amounts have therefore now been incorporated into the programme at Appendix I and II. 4.5 Commercial Property Receipts have reduced by £94,000 overall. In addition, a review of expenditure on the programme (Section 5.4.5) has meant that there is an increase in the level of receipts carried forward to future years of £770,000. However, Ring Fenced Capital Receipts for the disposal of waste containers within the Environment and Infrastructure Prudential Borrowing programme have increased by £4,000, thus reducing the Prudential Borrowing by this amount. 4.6 There is an increase of £327,000 in Third Party Contributions, with additional contributions towards Active Travel (£5,000, Section 5.2.2), Broxden Drainage Works (£153,000, Section 5.4.4), Play Parks (£15,000, Section 5.3.2) and Investment in the Learning Estate (£170,000, Section 5.5.2). A Revenue Contribution of £16,000 for Structural Maintenance had previously been included as a Third-Party Contribution, which has now been amended in Appendices I and II. Overall, Revenue Contributions have increased by £41,000 with the above contribution towards Structural Maintenance (£16,000 Section 5.2.3) and a proposed contribution from the Car Park Trading Account (£25,000, Section 5.2.2). 4.7 The projected borrowing requirement in 2024/25, which is effectively the balancing item for resources, is £116.529 million. This is £12.458 million lower than the borrowing requirement approved by this Committee on 5 February 2025. 4.8 The total borrowing requirement in the subsequent years 2025/26 to 2029/30 has increased by £11.454 million to £381.144 million, resulting in an overall reduction of £1.004 million in the total level of borrowing across the whole 6- year programme. This reduction in borrowing is summarised as follows: Page 57 of 104
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2024/25 2025/26 2026/27 Later Years Total £m £m £m £m £m Environment and Infrastructure - Carry Forward of Resources on the Bridge Refurbishment Programme to 2030/31 (Section 5.2.4) 0.000 (1.000) 0.000 0.000 (1.000) Environment and Infrastructure Prudential Borrowing Programme - Increase in Waste Container Disposals receipts (Section 5.2.7) (0.004) 0.000 0.000 0.000 (0.004) Movements arising from re-phasing of expenditure and receipts (Appendix II) (12.454) 12.200 (3.765) 4.019 0.000 Increase/(Reduction) in Borrowing Requirement (12.458) 11,200 (3.765) 4.019 (1.004) 4.9 The chart below shows the Capital Resources required to fund the 2024/25 Composite Capital Programme following the proposed budget adjustments detailed in this report. 77% 18% -0%2%1%1% Borrowing (£116.529M) Grants (£28.045M) Tay City Deal (-£0.069M) Developer Contributions (£3.707M) Third Party & Revenue Contributions (£1.922M) Receipts (£1.745M) Projected Capital Resources 2024/25 (February 2025) £Million 5. Composite Capital Programme – Expenditure 5.1 Total Expenditure and Proposed Budget Adjustments to the Current Programme 5.1.1 Total expenditure (net of grants and contributions) to 31 January 2025 on the Composite Capital Programme is detailed in Appendix II and summarised as follows: Page 58 of 104
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Projected Outturn (£m) Net Expenditure to 31 Jan 2025 (£m) % of Projected Outturn Environment and Infrastructure 29.746 19.981 67% Housing and Communities 1.226 0.651 53% Economy, Development and Planning 48.083 26.818 56% Property Services 60.095 48.989 82% Customer and Digital Services 8.637 3.027 35% Health and Social Care 1.202 0.664 55% Unallocated 0.000 0.000 0% Total Net Capital Expenditure 148.989 100.130 67% 5.1.2 Appendix IV includes updates on the progress of delivering the Council’s major Capital projects. 5.2 Environment and Infrastructure 5.2.1 The Strategic Lead has reviewed the programme for Environment and Infrastructure and proposed the following budget adjustments. 5.2.2 Within Traffic and Road Safety, various amounts from the 20mph Signage Programmes, Additional Road Safety Measures and Active Travel in 2024/25 have been re-allocated with the programme, with much of the works now scheduled for 2025/26. The 2024/25 Active Travel programme is also augmented by an increase of £5,000 in Third-party Contributions. Further, there are additional costs of £25,000 for the Car Park Investment at Pitlochry, and it is proposed that this is funded from a contribution for the Car Park Reserve. 5.2.3 Within Roads and Lighting, there are proposed small movements between years for Structural Maintenance (£150,000 from 2024/25 to 2025/26) and Footways (£50,000 from 2025/26 to 2024/25) to match the budget profile with the latest planned expenditure estimates. It is also proposed to transfer £4,000 from the Structural Maintenance budget to Road Safety Barriers in 2024/25. 5.2.4 Within Bridges, it is proposed to drawdown amounts from the Bridge Refurbishment Programme for works in 2025/26, for Bolfrack River (£449,000), Bridge of Tilt (£620,000) and Cor Bridge Culvert (£353,000). It is further proposed to rephase the remaining Bridge Refurbishment budget across future years, including £1 million being allocated to 2030/31. There are also proposed rephasing of the works on Old Perth Bridge and Queens Bridge. 5.2.5 Within Rural Flood Protection Schemes, the budget allocation for Investment in Surface Water Management Schemes (Leaky Dams) approved on 26 February 2025 has been rephased in line with the anticipated programme of works. There are also proposed movements from 2024/25 to 2025/26 within the programme for the Perth Flood Protection Scheme (£204,000) and South Kinross (£159,000). Page 59 of 104
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5.2.6 Within Climate Change, the additional Scottish Government Capital Grant of £80,000 for Nature Restoration has been added to the expenditure programme in 2025/26. 5.2.7 Within the Prudential Borrowing programme, it is proposed to move a total of £95,000 of expenditure from 2024/25 to 2025/26 in line with the latest estimates of expenditure requirements under the various budget headings. There is also an increase of £4,000 in disposal receipts for old waste containers, which reduces the overall borrowing requirement on the programme. 5.2.8 The above proposed adjustments have been reflected in Appendices I and II. 5.3 Housing and Communities 5.3.1 The Strategic Lead has reviewed the programme for Housing and Communities and proposed various budget adjustments, the most significant of which are described below. 5.3.2 Within Community Greenspace, the following rephasing and virements are proposed, including an additional Third-Party contribution: Project 24/25 £m 25/26 £m 26/27 £m Virement £m Description Play Areas – Improvements Implementation Strategy - (0.024) 0.705 0.666 To support progress made on works undertaken on play areas to date, it is proposed to vire £666,000 from Community Greenspace Sites. Third Party Contribution - (0.015) - - In addition, a third party contribution from Legion Park Friends Group has been allocated in 2025/26 with a corresponding increase in expenditure. Settlement / Neighbourhood Parks - - - 0.270 In order to support anticipated works in Settlement/Neighbourhood Parks in 2026/27 it is proposed £270,000 is vired from Community Greenspace Sites. Community Greenspace Sites - - - (0.936) In line with the proposals above, £654,000 in 2025/26 and £282,000 in 2026/27 is vired to Play Areas and Settlement/ Neighbourhood Parks. 5.3.3 Within Housing Projects, following the transfer of Gypsy Traveller sites to the HRA, future works relating to these sites will be funded by the HRA, and the remaining budgets of £185,000 and £225,000 for Gypsy Traveller Improvement Works are no longer required within the Composite Programme. Page 60 of 104
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It is therefore proposed that these are returned to Unallocated Capital Resources. It is further proposed that £24,000 for the New Gypsy Traveller Site is brought forward from 2025/26 to 2024/25 to meet fees expected to be incurred this year. 5.3.4 Within Community Planning, no spend is projected on Community-Led Asset Transfers in 2024/25 and it is proposed that the budget of £75,000 is rephased to 2025/26. 5.3.5 All the above proposed adjustments, together with other small movements from 2024/25 to 2025/26, have been reflected in Appendices I and II. 5.4 Economy, Development and Planning 5.4.1 The Strategic Lead has reviewed the programme for Economy, Development and Planning and proposed various budget adjustments, the most significant of which are described below. 5.4.2 Within Improvement Schemes, the Bertha Park Link Road construction timeframe has been accelerated, with the majority of the work now due to take place in 2025/26 with completion scheduled for 2026/27. It is therefore proposed the budget is accelerated as follows: 2024/25 £m 2025/26 £m 2026/27 £m 2027/28 £m Bertha Park Link Road 0.327 8.606 (7.125) (1.808) 5.4.3 Within Perth and Kinross Lighting Action Plan, £298,000 of the 2024/25 budget remains with no further works planned for this year. It is therefore proposed that this is moved to 2025/26. 5.4.4 Within the Commercial Property Investment Programme, £1 million was budgeted for use in 2024/25 to create serviced business units, however work is not scheduled to progress on these until 2025/26. It is therefore proposed that the budget is moved to 2025/26. There is also an increase in costs of £611,000 and additional Third-Party Contributions from Scottish Water of £153,000 for the Drainage Works at Broxden. In addition, it is proposed to remove the proposed works at Ruthvenfield Business centre (£1.356 million). 5.4.5 Other smaller proposed budget adjustments are shown in Appendix II to bring the budgets into line with the current level of expenditure. All these proposed movements result in an overall net reduction in proposed expenditure on the programme of £864,000 in the current period. The overall Commercial Property Investment Programme is currently being reviewed, and further proposals will be brought to this Committee in due course. 5.4.6 Within the Prudential Borrowing Programme, the proposed Hotel Development at 1-3 High Street has been delayed, and it is proposed that the 2024/25 and 2025/26 budgets of £950,000 in each year are moved to 2026/27 and 2027/28. Page 61 of 104
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5.4.7 All the above proposed adjustments have been reflected in Appendices I and II. 5.5 Property Services 5.5.1 The Strategic Lead has reviewed the programme for Property Services and proposed various budget adjustments, the most significant of which are described below. 5.5.2 Within Project Support, the following rephasings and virement are proposed: Project 24/25 £m 25/26 £m 26/27 £m Virement £m Description Investment in the Learning Estate Third Party Contribution 0.170 (0.170) - - - - - - A Third Party Contribution has been received towards the works at Madderty Primary School for a new external door and car parking improvements undertaken during 2024/25. Riverside Primary School Unallocated Resources - - - - - - (0.133) 0.133 The final account for Riverside Primary School has been received resulting in an underspend of £133,000. It is proposed this is returned to the Unallocated Resources. As above Methven Primary School 0.145 (0.145) - - Design works by the appointed contractor are ongoing and it is proposed £145,000 is accelerated from 2025/26 to 2024/25 to cover this advanced expenditure. Perth Academy 0.105 - (0.105) - Works at Perth Academy are progressing better than expected and it is therefore proposed to accelerate £105,000 from 2026/27. Perth Grammar (0.140) - 0.140 - Perth Grammar works are also progressing, however the works completed in 2024/25 are less than estimated and it is proposed £140,000 is moved to 2026/27. Perth High School Replacement (7.200) 7.200 - - Works at the replacement Perth High School are progressing well and the main contractor has provided an update to the phasing of works as they near completion. Occupation of the building is due in the summer 2025, in line with receiving pupils for the start of the 2025/26 Page 62 of 104
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academic year. It is, however, proposed £7,200,000 is moved from 2024/25 to 2025/26 to agree with the revised spend plan from the contractor. Blairgowrie Recreation Centre Replacement (1.300) 1.300 - - As a result of issues identified in the swimming pool, completion of phase 1 was delayed with a subsequent delay in moving to phase 2. An updated cashflow has been received from the contractor and it is proposed £1,300,000 is moved from 2024/25 to 2025/26 accordingly. 5.5.3 Within Property Service Management the following rephasings are proposed: Project 24/25 £m 25/26 £m Future Years £m Description Property Compliance Works Programme 0.050 (0.050) - Multiple works within the programme are facing increased costs and it is proposed £50,000 is accelerated to cover this expenditure. Capital Improvement Projects Programme 0.135 (0.135) - It is proposed £135,000 is accelerated with works taking place at Bells Sports Centre (£110,000) and increased costs being incurred at Our Lady’s PS for the new fire alarm and boilers (£106,000). These are offset by the rescheduling of other works into 2025/26. PH2O (0.340) - 0.340 Limited spend on PH2O is anticipated in 2024/25 and it is proposed £340,000 is moved to 2029/30. Crieff Drummond Arms Regeneration 0.055 (0.055) - Survey works are ongoing in preparation for a complex demolition in 2025/26. It is proposed £55,000 is accelerated to 2024/25 for these advance works. 5.5.4 Also, within Property Service Management, works at Perth Art Gallery are complete with the venue operating as intended. The remaining budget of £2.895 million is therefore no longer required, and it is proposed that it is returned to the Unallocated Resources budget in 2025/26. 5.5.5 All the above proposed adjustments, together with other small movements, have been reflected in Appendices I and II. 5.6 Customer and Digital Services 5.6.1 The Strategic Lead has reviewed the programme for Customer and Digital Services and proposed various budget adjustments, the most significant of which are described below. 5.6.2 Within the ICT Infrastructure Replacement and Upgrade Programme, various contracts require renewal prior to the 2024/25 year-end, and it is therefore Page 63 of 104
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proposed £373,000 is accelerated from 2025/26 to match the renewals timeframe. 5.6.3 The Case Management System has not progressed in 2024/25 as previously anticipated, and it is proposed the budget of £80,000 is moved to 2025/26. 5.6.4 All the above proposed adjustments, together with other small movements, have been reflected in Appendices I and II. 5.7 Health and Social Care 5.7.1 Within Technology Enabled Telecare, in line with the number of installs to be completed by the end of 2024/25, as well as bulk purchasing of equipment to receive best value for money, it is proposed £140,000 is accelerated equally from the next three years to 2024/25. 5.7.2 The proposed adjustment has been reflected in Appendices I and II. 5.8 Unallocated Resources 5.8.1 It is proposed that the Unallocated Resources budget in 204/25 of £52,000 is moved to 2025/26. As detailed in this report, it is proposed that the budget in 2025/26 is increased by the transfer of remaining budgets for Perth Art Gallery (£2.895 million, Section 5.5.4), Gypsy Traveller sites (£410,000, Section 5.3.3) and Riverside Primary School (£133,000, Section 5.5.2). It is also proposed that the additional Capital Grant for Climate Change (£1.274 million, Section 4.4) is added to this budget pending consideration of expenditure proposals being brought forward. 5.8.2 Upgrade works have been identified to be required at Perth Concert Hall. It is proposed that £2.895 million is applied from the Unallocated Resources for Phase 1 of the works at Perth Concert Hall, over the next 4 years. 6. Housing Investment Programme 6.1 The total current estimated expenditure, net of contributions, for the Housing Investment Programme over the 5 years 2024/25 to 2028/29 remains unchanged at £96.917 million. Movements across years from the previous estimates are summarised in the table below and detailed in Appendix III. Approved 5 Feb 2025 Current Estimate Movement £m £m £m 2024/25 31.513 28.067 (3.446) 2025/26 22.826 28.098 5.272 2026/27 15.633 14.411 (1.222) 2027/28 14.869 14.265 (0.604) 2028/29 12.076 12.076 0.000 Total 96.917 96.917 0.000 Page 64 of 104
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Total Expenditure to 31 January 2025 (Housing Investment Programme) 6.2 Net expenditure for 2024/25 to 31 January 2025 amounts to £26.555 million and receipts amount to £202,000. Therefore, the borrowing requirement for the year to date is £26.353 million. 6.3 The Strategic Leads for Housing and Communities and Property Services have reviewed the Housing Investment Programme and proposed the budget adjustments outlined below. 6.4 It is proposed to draw down various amounts from the New Build Future Developments budgets from future years to 2024/25 as follows: Beechgrove, Perth - £10,000 to cover professional fees for the development of the site. Former Balhousie Primary School, Perth - £78,000 to cover professional fees for the development of the site. Council House Buy Backs - £514,000 from 2025/26, £514,000 from 2026/27 and £516,000 from 2027/28 to cover the increased number of purchases in 2024/25. 6.5 At Kinloch Gardens, Rattray, 12 properties were purchased in February and March 2025. It has been confirmed that the remaining 8 properties under the proposal will now conclude in April 2025. It is therefore proposed to move £1.412 million of the budget to 2025/26 to cover these purchases, along with the Council Tax Second Home contribution of £400,000. 6.6 In addition, further grant awards of £1.960 million have been awarded for the Council House Buy-Back programme in 2024/25 by the Scottish Government, and it is proposed to increase the budget by this amount. The Buy Backs budget is further augmented by £60,000 of Commuted Sums in 2024/25. A total of 116 properties have been purchased under the Buy-Back programme in 2024/25. 6.7 It is also proposed to allocate part of the SHQS Future Developments Budget in 2026/27 to various schemes in 2024/25, as follows: Triple Glazing - £363,000 to cover works completed in Phase 4 of the programme in the current year in line with the final account. Retrofit Works - £122,000 for energy efficiency works at properties in line with net zero targets. A further £40,000 is proposed for 2025/26 6.8 Various smaller amounts are proposed for Controlled Door Entry (£23,000), Sheltered Housing (£50,000) and Rannoch Road Development (£57,000, with a further £53,000 in 2025/26). These are required to cover additional works at various sites. 6.9 Further, it is proposed to move various amounts from 2024/25 to 2025/26 to reflect the level of work anticipated to be completed in the current year. These proposed movements are summarised as follows: Page 65 of 104
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St.Catherines Square - £3.325 million, with only stage 2 fees to be incurred in 2024/25. Sound Insulation - £366,000, based on the level of works that will be completed in the current year. Structural works - £243,000, with professional fees only to be incurred in 2024/25 Energy Efficiency - £235,000, with professional fees only to be incurred in 2024/25 Mortgage to Rent - £174,000, as a result of the purchase being placed on hold pending further discussions. Various other smaller proposed movements to match anticipated expenditure in 2024/25, including Multi Storey Flats (£88,000), Lift Upgrades (£100,000), Garage & Lockups (£50,000), Shops & Offices (£50,000), Greyfriars (£20,000) and ICT (£30,000). 6.10 The Housing and Wellbeing Committee approved reduced levels of Capital Financed from Current Revenue (CFCR) when setting the revised Capital Investment Programme for 2025/26 to 2029/30, amounting to £1.892 million across the 5-year programme. These adjustments increase the Borrowing Requirement and have been included in Appendix III, however they are offset by an increase in Capital Receipts in 2024/25 of £90,000. 7. Budget Overview 1.1 The projected net expenditure outturn in 2024/25 for the Composite Capital Budget is £148.989 million and represents 75% of the original 2024/25 budget approved on 24 April 2024 (£198.184 million). The revised budget is based on the latest projections of expenditure and all budget adjustments outlined within this report. 1.2 Net expenditure to 31 January 2025 on the Composite Capital Budget is £100.130 million and represents 67% of the proposed revised budget for 2024/25 of £148.989 million. 7.3 The projected net expenditure outturn in 2024/25 for the Housing Investment Programme is £28.067 million and represents 130% of the original 2024/25 budget approved on 26 April 2024 (£21.536 million). This increase reflects the allocation of future years block budgets to specific projects in 2024/25 over the year and the increase in the Council House Buy-Back programme. 7.4 Net expenditure to 31 January 2025 on the Housing Investment Programme is £26.555 million which represents 95% of the proposed revised budget for 2024/25 of £28.067 million. 7.5 The Council’s total Borrowing Requirement to 31 January 2025, based on the Composite and Housing Investment Programmes, is £99.863 million. The estimated overall Council Borrowing Requirement for 2024/25 as a whole has reduced by £15.994 million to £142.561 million as a result of the monitoring adjustments reflected within this report. This reflects a reduction in estimated borrowing in the current year on the Composite Programme of £12.458 million and the Housing Investment Programme of £3.536 million. Page 66 of 104
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7.6 In the context of the Capital Budget, the borrowing above refers specifically to the funding of capital expenditure and therefore the need to borrow. The actual amounts and timing of the borrowing is undertaken as part of the Council’s Treasury Management operations and reported within the Treasury Activity and Compliance reports throughout the year. 8. Impact and Value Assessment Impact and Value Assessment 9. Appendices 9.1 Appendix I - Composite Capital Programme - Estimated Capital Resources 2024/25 to 2029/30 9.2 Appendix II – Composite Capital Programme - Summary of Capital Resources and Expenditure 2024/25 to 2029/30 9.3 Appendix III – HRA Capital Investment Programme – Summary of Capital Resources and Expenditure 2024/25 to 2028/29 9.4 Appendix IV – Significant Capital Projects Progress Update Page 67 of 104
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PERTH AND KINROSS COUNCIL COMPOSITE CAPITAL PROGRAMME Estimated Capital Resources 2024/25 to 2029/30 APPENDIX I Capital Capital Capital Capital Capital Capital Capital Resources Resources Resources Resources Resources Resources Resources 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 TOTAL (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) Revised Revised Revised Revised Revised Revised Revised Budget Budget Budget Budget Budget Budget Budget Capital Grants Recycling Improvement Fund 98 0 0 0 0 0 98 Road Safety Initiaive Fund 383 0 0 0 0 0 383 General Capital Grant 27,564 11,000 21,752 12,750 12,750 12,750 98,566 Total Capital Grants 28,045 11,000 21,752 12,750 12,750 12,750 99,047 General Capital Receipts General Fund - Capital Receipts 357 563 0 0 0 0 920 General Fund - Ring Fenced Receipts 556 578 844 994 981 1,019 4,972 Total General Capital Receipts 913 1,141 844 994 981 1,019 5,892 Commercial Property Receipts Capital Receipts brought-forward 2,102 1,270 2,319 2,319 3,407 3,407 2,102 Commercial Property Capital Receipts 0 1,049 0 1,088 0 0 2,137 Capital Receipts carried-forward (1,270) (2,319) (2,319) (3,407) (3,407) (3,407) (3,407) Total Commercial Property Receipts Applied 832 0 0 0 0 0 832 Contributions Tay Cities Deal (69) 550 505 3,945 500 956 6,387 Developer Contributions 3,707 2,367 2,600 2,600 2,500 2,500 16,274 Other Third Party Contributions 1,797 15 2,000 3,000 1,000 1,000 8,812 Revenue Budget Contributions 125 174 124 124 0 0 547 Total Contributions 5,560 3,106 5,229 9,669 4,000 4,456 32,020 Capital Borrowing Requirement 116,529 132,216 103,393 67,055 48,178 30,302 497,673 TOTAL CAPITAL RESOURCES/ GROSS BUDGET EXPENDITURE 151,879 147,463 131,218 90,468 65,909 48,527 635,464 6 Page 69 of 104
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PERTH AND KINROSS COUNCIL COMPOSITE CAPITAL PROGRAMME Estimated Capital Resources 2024/25 to 2029/30 APPENDIX I Movements in Resources from Approved Budget - 5 February 2025 Revised Revised Revised Revised Revised Revised Revised Budget Budget Budget Budget Budget Budget Budget 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 TOTAL £'000 £'000 £'000 £'000 £'000 £'000 £'000 Increase/(Decrease) in: Capital Receipts - General Fund (56) 56 0 0 0 0 0 Capital Receipts - Commercial Property (713) 619 0 0 0 0 (94) Capital Receipts - Ring Fenced 4 0 0 0 0 0 4 Capital Grants: Active Travel 0 0 0 0 0 0 0 Recycling Improvement Fund 0 0 0 0 0 0 0 Road Safety Initiaive Fund 0 0 0 0 0 0 0 Gypsy Travellers Improvements 0 0 0 0 0 0 0 General Capital Grant 637 1,485 (637) 0 0 0 1,485 Tay Cities Deal 0 0 0 0 0 0 0 Third Party Contributions 312 15 0 0 0 0 327 Revenue Contributions 41 0 0 0 0 0 41 Developer Contributions 0 0 0 0 0 0 0 Resources b/f 0 151 770 770 770 770 3,231 Resources c/f to future years (151) (770) (770) (770) (770) (770) (4,001) Borrowing Requirement (12,458) 11,200 (3,765) 1,910 1,255 854 (1,004) Total Increase/(Decrease) in Resources (12,384) 12,756 (4,402) 1,910 1,255 854 (11) Approved Resources 5 February 2025 164,313 128,011 133,388 86,793 64,549 46,523 623,577 Approved Movements 26 February 2025 (50) 6,696 2,232 1,765 105 1,150 11,898 Revised Resources 151,879 147,463 131,218 90,468 65,909 48,527 635,464 Page 70 of 104
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PERTH AND KINROSS COUNCIL COMPOSITE CAPITAL PROGRAMME SUMMARY OF CAPITAL RESOURCES AND EXPENDITURE 2024/25 to 2029/30 APPENDIX II Approved Approved Proposed Revised Actuals Projected Revised Revised Revised Revised Revised Revised Budget Budget Budget Budget to Outturn Budget Budget Budget Budget Budget Budget 05-Feb-25 Adjustment Adjustment 31-Jan-25 Report 3 26-Feb-25 Report 4 Report 4 Report 4 Report 4 Report 4 Report 4 Report 4 Report 4 2024/25 2024/25 2024/25 2024/25 2024/25 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) ENVIRONMENT & INFRASTRUCTURE 30,810 (50) (1,014) 29,746 19,981 29,746 47,159 36,181 23,948 18,606 16,603 172,243 HOUSING & COMMUNITIES 1,829 0 (603) 1,226 651 1,226 3,509 2,186 1,558 1,500 1,500 11,479 ECONOMY, DEVELOPMENT & PLANNING 50,868 0 (2,785) 48,083 26,818 48,083 24,711 28,968 (4,420) (2,150) (2,636) 92,556 PROPERTY SERVICES 68,812 0 (8,717) 60,095 48,989 60,095 61,585 53,838 49,867 35,650 22,990 284,025 CUSTOMER & DIGITAL SERVICES 8,347 0 290 8,637 3,027 8,637 5,709 5,227 10,196 8,502 5,925 44,196 HEALTH & SOCIAL CARE 1,062 0 140 1,202 664 1,202 1,604 1,345 1,256 1,320 1,170 7,897 UNALLOCATED CAPITAL RESOURCES 52 0 (52) 0 0 0 1,869 0 0 0 0 1,869 TOTAL NET EXPENDITURE 161,780 (50) (12,741) 148,989 100,130 148,989 146,146 127,745 82,405 63,428 45,552 614,265 (NET OF GRANTS, REVENUE AND 3RD PARTY CONTRIBUTIONS, AND RING FENCED RECEIPTS) GENERAL CAPITAL GRANT (26,928) 1 (637) (27,564) (24,370) (27,564) (11,000) (21,752) (12,750) (12,750) (12,750) (98,566) DEVELOPER CONTRIBUTIONS (3,707) 0 0 (3,707) 0 (3,707) (2,367) (2,600) (2,600) (2,500) (2,500) (16,274) CAPITAL RECEIPTS (1,126) 0 769 (357) (376) (357) (1,612) 0 (1,088) 0 0 (3,057) ANNUAL BORROWING REQUIREMENT 130,019 (49) (12,609) 117,361 75,384 117,361 131,167 103,393 65,967 48,178 30,302 496,368 CAPITAL RECEIPTS BROUGHT FORWARD (2,102) 0 0 (2,102) (2,102) (2,102) (1,271) (2,320) (2,320) (3,408) (3,407) (2,102) CAPITAL RECEIPTS CARRIED FORWARD 1,120 (1) 151 1,270 228 1,270 2,320 2,320 3,408 3,408 3,407 3,407 TOTAL NET BORROWING REQUIREMENT 129,037 (50) (12,458) 116,529 73,510 116,529 132,216 103,393 67,055 48,178 30,302 497,673 6 Page 71 of 104
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PERTH AND KINROSS COUNCIL COMPOSITE CAPITAL PROGRAMME SUMMARY OF CAPITAL RESOURCES AND EXPENDITURE 2024/25 to 2029/30 APPENDIX II Revised Approved Proposed Revised Actual Projected Revised Revised Revised Revised Revised Revised Budget Budget Budget Budget to Outturn Budget Budget Budget Budget Budget Budget Adjustment Adjustment 31-Jan-25 Report 3 26-Feb-25 Report 4 Report 4 Report 4 Report 4 Report 4 Report 4 Report 4 Report 4 2024/25 2024/25 2024/25 2024/25 2024/25 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 TOTAL (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) ENVIRONMENT & INFRASTRUCTURE Traffic & Road Safety Road Safety Initiatives (20mph Zones etc..) 718 (110) 608 78 608 472 362 361 400 400 2,603 Scottish Government Grant (383) (383) (383) 0 0 0 0 0 (383) Road Safety Initiatives - A94 Safety Improvements 84 84 84 0 0 0 0 0 84 Active Travel Grant -Traffic & Road Safety Schemes 816 (67) 749 342 749 868 600 600 600 600 4,017 Third Party Contribution (77) (5) (82) (82) 0 0 0 0 0 (82) Additional Road Safety - Pedestrian Crossings 60 5 65 65 181 153 0 0 0 399 Schools Road Safety Measures 122 60 182 181 182 0 0 0 0 0 182 20mph Signage Programme - Schools 128 (128) 0 3 0 0 0 0 0 0 0 20mph Signage Programme 39 8 47 30 47 120 0 0 0 0 167 Car Parking Investment - Pitlochry 205 25 230 101 230 0 0 0 0 0 230 Revenue Contribution (55) (25) (80) (55) (80) 0 0 0 0 0 (80) Sub-Total 1,657 0 (237) 1,420 680 1,420 1,641 1,115 961 1,000 1,000 7,137 Asset Management - Roads & Lighting Structural Maintenance 13,347 (154) 13,193 10,551 13,193 10,113 8,963 8,964 8,320 8,320 57,873 Third Party Contribution (262) 16 (246) (114) (246) 0 0 0 0 0 (246) Revenue Contribution 0 (16) (16) (16) (16) 0 0 0 0 0 (16) Traffic Signal Renewals - Upgrading 173 173 129 173 100 100 100 100 100 673 Footways 622 50 672 574 672 318 368 368 341 341 2,408 Street Lighting 0 0 0 0 0 0 600 600 1,200 Investment in Local Footpaths 0 0 0 20 100 0 0 0 120 Road Safety Barriers 22 4 26 26 26 0 0 0 0 0 26 Sub-Total 13,902 0 (100) 13,802 11,150 13,802 10,551 9,531 9,432 9,361 9,361 62,038 Asset Management - Bridges Bridge Refurbishment Programme 1,283 (118) 1,165 665 1,165 1,778 2,162 3,201 2,500 2,500 13,306 Vehicular Bridge Parapets Programme - Assess & Upgrade 1 1 1 33 0 0 0 0 34 Old Perth Bridge - Strengthening 155 (106) 49 29 49 260 2,216 0 0 0 2,525 Perth Queens Bridge - Strengthening 59 59 45 59 154 343 1,800 0 0 2,356 Garry Viaduct 46 46 15 46 321 515 1,790 1,690 0 4,362 Bolfrack River Retaining Wall 0 0 0 449 0 0 0 0 449 Bridge of Tilt 0 0 0 620 0 0 0 0 620 Corb Bridge Culvert, Kinross 0 0 0 353 0 0 0 0 353 Culteuchar Culvert 13 9 22 14 22 0 0 0 0 0 22 Sub-Total 1,557 0 (215) 1,342 768 1,342 3,968 5,236 6,791 4,190 2,500 24,027 Improvement Schemes A977 Upgrades 5 5 1 5 173 0 0 0 0 178 Broich Road, Crieff - Road Realignment & Safety Measures 0 0 0 18 0 0 0 0 18 Sub-Total 5 0 0 5 1 5 191 0 0 0 0 196 Rural Flood Protection Schemes Perth Flood Protection Scheme (South Inch Culvert Reinstatement) 259 (204) 55 50 55 204 0 0 0 0 259 Comrie Flood Protection Scheme 6,193 6,193 1,919 6,193 21,481 7,830 0 0 0 35,504 Milnathort Flood Protection Scheme 72 72 2 72 267 0 0 0 0 339 South Kinross Flood Protection Scheme 239 (159) 80 64 80 2,121 8,823 3,150 75 0 14,249 Scone Flood Protection Scheme 50 (50) 0 0 0 0 0 0 0 0 0 Flood Mitigation Measures - Dunkeld and Craigie Burn 8 8 8 8 72 48 180 375 317 1,000 Investment in Surface Water Management Schemes - Leaky Dam, Rattray Burn0 0 0 27 24 44 255 0 350 Coastal Change Adaptation 48 48 30 48 52 0 0 0 0 100 Sub-Total 6,869 (50) (363) 6,456 2,073 6,456 24,224 16,725 3,374 705 317 51,801 Climate Change Nature Restoration 232 232 28 232 80 0 0 0 0 312 Sub-Total 232 0 0 232 28 232 80 0 0 0 0 312 Waste Strategy Recycling Improvement Fund 98 98 98 98 0 0 0 0 0 98 Scottish Government Grant (98) (98) (98) (98) 0 0 0 0 0 (98) Sub-Total 0 0 0 0 0 0 0 0 0 0 0 0 Page 72 of 104
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PERTH AND KINROSS COUNCIL COMPOSITE CAPITAL PROGRAMME SUMMARY OF CAPITAL RESOURCES AND EXPENDITURE 2024/25 to 2029/30 APPENDIX II Revised Approved Proposed Revised Actual Projected Revised Revised Revised Revised Revised Revised Budget Budget Budget Budget to Outturn Budget Budget Budget Budget Budget Budget Adjustment Adjustment 31-Jan-25 Report 3 26-Feb-25 Report 4 Report 4 Report 4 Report 4 Report 4 Report 4 Report 4 Report 4 2024/25 2024/25 2024/25 2024/25 2024/25 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 TOTAL (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) Prudential Borrowing Projects Wheeled Bin Replacement Programme - Domestic Bins 267 (48) 219 158 219 248 200 200 220 220 1,307 Wheeled Bin Replacement Programme - Commercial Bins 161 161 104 161 20 20 20 25 25 271 Recycling Containers, Oil Banks & Battery Banks Replacement Programme209 (46) 163 144 163 151 105 105 70 70 664 Capital Receipts - Disposals (2) (4) (6) (5) (6) 0 0 0 0 0 (6) Litter Bins 50 (15) 35 8 35 65 50 50 55 55 310 Vehicle Replacement Programme 5,495 5,495 4,466 5,495 5,777 2,942 2,692 3,311 3,394 23,611 Capital Receipts - Vehicle Disposals (550) (550) (246) (550) (578) (294) (269) (331) (339) (2,361) Street Lighting Renewal - LED & Column Replacement 958 14 972 652 972 821 551 592 0 0 2,936 Sub Total 6,588 0 (99) 6,489 5,281 6,489 6,504 3,574 3,390 3,350 3,425 26,732 TOTAL - ENVIRONMENT & INFRASTRUCTURE 30,810 (50) (1,014) 29,746 19,981 29,746 47,159 36,181 23,948 18,606 16,603 172,243 HOUSING & COMMUNITIES Community Greenspace Play Areas - Improvements Implementation Strategy 641 641 156 641 898 855 150 500 500 3,544 Third Party Contribution (4) (4) (4) (15) 0 0 0 0 (19) Revenue Contribution 0 0 0 (50) 0 0 0 0 (50) 3G Pitch, Blairgowrie 117 117 83 117 0 0 0 0 0 117 Settlement/Neighbourhood Parks 250 (15) 235 202 235 315 270 0 0 0 820 Third Party Contribution (84) (84) (84) (84) 0 0 0 0 0 (84) Countryside Sites 0 0 0 0 0 139 0 0 139 Community Greenspace Sites 0 0 0 0 616 894 700 700 2,910 Community Greenspace Bridges 197 (109) 88 122 88 109 0 0 0 0 197 Third Party Contribution (13) (13) (13) (13) 0 0 0 0 0 (13) Core Path Implementation 110 110 12 110 0 0 0 0 0 110 Third Party Contribution (110) (110) (110) 0 0 0 0 0 (110) Premier Parks 46 (10) 36 32 36 10 0 0 0 0 46 Third Party Contribution (14) (14) (10) (14) 0 0 0 0 0 (14) Kinnoull Hill 8 (8) 0 0 8 0 0 0 0 8 Cemetery Extensions 13 13 13 13 60 445 375 300 300 1,493 Sub-Total 1,157 0 (142) 1,015 513 1,015 1,335 2,186 1,558 1,500 1,500 9,094 Housing Projects Gypsy Travellers Site Improvement Works 185 (185) 0 2 0 0 0 0 0 0 0 Additional Gypsy Traveller Site Improvement Works 225 (225) 0 30 0 0 0 0 0 0 0 New Gypsy Traveller Site 6 24 30 30 1,966 0 0 0 0 1,996 Sub Total 416 0 (386) 30 32 30 1,966 0 0 0 0 1,996 Public Transport Community Transport Iniatives 181 181 106 181 18 0 0 0 0 199 Sub-Total 181 0 0 181 106 181 18 0 0 0 0 199 Prudential Borrowing Projects Community Transport Vehicles 0 0 0 115 0 0 0 0 115 Sub Total 0 0 0 0 0 0 115 0 0 0 0 115 Community Planning Community-Led Asset Transfers 75 (75) 0 0 75 0 0 0 0 75 Sub-Total 75 0 (75) 0 0 0 75 0 0 0 0 75 TOTAL - HOUSING & COMMUNITIES 1,829 0 (603) 1,226 651 1,226 3,509 2,186 1,558 1,500 1,500 11,479 ECONOMY, DEVELOPMENT & PLANNING Improvement Schemes A9/A85 Road Junction Improvements 212 212 19 212 0 0 0 0 0 212 Cross Tay Link Road (CTLR) 44,745 44,745 23,822 44,745 0 0 0 0 0 44,745 Bertha Park Link Road 686 327 1,013 627 1,013 9,006 2,875 0 0 0 12,894 Sub-Total 45,643 0 327 45,970 24,468 45,970 9,006 2,875 0 0 0 57,851 Page 73 of 104
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PERTH AND KINROSS COUNCIL COMPOSITE CAPITAL PROGRAMME SUMMARY OF CAPITAL RESOURCES AND EXPENDITURE 2024/25 to 2029/30 APPENDIX II Revised Approved Proposed Revised Actual Projected Revised Revised Revised Revised Revised Revised Budget Budget Budget Budget to Outturn Budget Budget Budget Budget Budget Budget Adjustment Adjustment 31-Jan-25 Report 3 26-Feb-25 Report 4 Report 4 Report 4 Report 4 Report 4 Report 4 Report 4 Report 4 2024/25 2024/25 2024/25 2024/25 2024/25 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 TOTAL (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) Perth & Kinross Place-making Perth, Place, People 0 0 0 0 3,598 0 0 0 3,598 Perth City Centre Golden Route (Rail Station) 23 23 24 23 45 0 0 0 0 68 City Greening 0 0 0 31 0 0 0 0 31 Perth & Kinross Lighting Action Plan 476 (298) 178 90 178 1,142 0 0 0 0 1,320 Sub-Total 499 0 (298) 201 114 201 1,218 3,598 0 0 0 5,017 Other Planning Projects Local Full Fibre Network 0 0 0 0 0 0 0 0 0 Third Party Contribution - Tay Cities Deal 0 0 (53) 0 0 0 0 0 0 0 Low Carbon Transport & Active Travel Hub - Broxden EV Chargers (74) (74) 5 (74) 0 0 0 0 0 (74) Third Party Contribution - ERDF (2) (2) (2) 0 0 0 0 0 (2) Third Party Contribution - Tay Cities Deal 69 69 69 0 0 0 0 0 69 Revenue Contribution 7 7 7 0 0 0 0 0 7 Perth Eco-Innovation Park at Perth West 780 780 332 780 9,737 22,300 0 0 0 32,817 Third Party Contributions - Tay Cities Deal 0 0 0 (550) (505) (3,945) (500) (956) (6,456) Other Third Party Contributions 0 0 0 0 (2,000) (3,000) (1,000) (1,000) (7,000) Capital Receipts - Ring Fenced Land Disposals 0 0 0 0 (550) (725) (650) (680) (2,605) Adapt Your Property - Vacant Town & City Centre Space 300 300 9 300 300 300 300 0 0 1,200 Sub-Total 1,080 0 0 1,080 293 1,080 9,487 19,545 (7,370) (2,150) (2,636) 17,956 Commercial Property Investment Programme North Muirton Industrial Estate - Site Servicing & Provision of Units 43 43 11 43 0 0 0 0 0 43 Broxden Business Park - Additional Infrastructure 6 6 6 0 0 0 0 0 6 Western Edge, Kinross - Site Servicing (17) 34 17 17 17 0 0 0 0 0 17 Broxden Drainage Mitigation Works 1,225 611 1,836 1,915 1,836 0 0 0 0 0 1,836 Third Party Contribution (Scottish Water) (919) (153) (1,072) (1,072) 0 0 0 0 0 (1,072) Ruthvenfield Business Centre 1,356 (1,356) 0 0 0 0 0 0 0 0 North Muirton Drainage 2 2 2 0 0 0 0 0 2 Economic Development Investment - Land & Serviced Units* 1,000 (1,000) 0 0 5,000 2,000 2,000 0 0 9,000 * not funded from ring fenced receipts 2,696 0 (1,864) 832 1,943 832 5,000 2,000 2,000 0 0 9,832 Prudential Borrowing Projects Land Purchase & Development (Hotel Development) 950 (950) 0 0 0 950 950 0 0 1,900 Sub Total 950 0 (950) 0 0 0 0 950 950 0 0 1,900 TOTAL - ECONOMY, DEVLOPMENT & PLANNING 50,868 0 (2,785) 48,083 26,818 48,083 24,711 28,968 (4,420) (2,150) (2,636) 92,556 PROPERTY SERVICES Project Support Investment in the Learning Estate 1,591 170 1,761 1,164 1,761 13,050 8,650 6,823 0 0 30,284 Third Party Contribution 0 (170) (170) (170) 0 0 0 0 0 (170) Methven Primary School Refurbishment 206 145 351 61 351 3,355 300 0 0 0 4,006 Kirkmichael Primary School Upgrades 25 25 25 25 0 0 0 0 0 25 North/West Perth - New Primary School 0 0 0 341 7,672 15,400 0 0 23,413 Riverside Primary New School 483 (133) 350 329 350 0 0 0 0 0 350 Perth Academy - Refurbishment 3,050 105 3,155 2,647 3,155 1,650 194 0 0 0 4,999 Perth Grammar School - Upgrade Programme Phase 3 1,000 (140) 860 644 860 1,500 1,628 0 0 0 3,988 Perth High School - Internal Services & Refurbishment 12 12 12 0 0 0 0 0 12 Perth High School - New School Investment 40,899 (7,200) 33,699 27,058 33,699 13,800 3,600 0 0 0 51,099 Harris Academy/Invergowrie - Extension 591 591 152 591 0 0 0 0 0 591 Blairgowrie Recreation Centre - Replacement 15,327 (1,300) 14,027 13,347 14,027 2,603 0 0 0 0 16,630 Technology Upgrades 115 115 86 115 771 483 0 0 0 1,369 Sub-Total 63,299 0 (8,523) 54,776 45,513 54,776 37,070 22,527 22,223 0 0 136,596 Project & Contracts Free School Meal Expansion Programme 0 0 0 1,000 2,511 0 0 0 3,511 Community Campus Access Adaptations 0 0 0 25 0 0 0 0 25 Sub-Total 0 0 0 0 0 0 1,025 2,511 0 0 0 3,536 Property Service Manager DDA Adaptation & Alteration Works Programme 130 (20) 110 34 110 320 200 200 0 0 830 Property Compliance Works Programme 1,017 50 1,067 794 1,067 600 650 400 0 0 2,717 Capital Improvement Projects Programme 2,265 135 2,400 1,602 2,400 1,665 1,800 894 10,000 10,000 26,759 Pitlochry High School - Upgrade Programme 104 26 130 97 130 34 0 0 0 0 164 Friarton Depot - Waste Transfer Station 250 250 193 250 2,531 0 0 0 0 2,781 Page 74 of 104
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PERTH AND KINROSS COUNCIL COMPOSITE CAPITAL PROGRAMME SUMMARY OF CAPITAL RESOURCES AND EXPENDITURE 2024/25 to 2029/30 APPENDIX II Revised Approved Proposed Revised Actual Projected Revised Revised Revised Revised Revised Revised Budget Budget Budget Budget to Outturn Budget Budget Budget Budget Budget Budget Adjustment Adjustment 31-Jan-25 Report 3 26-Feb-25 Report 4 Report 4 Report 4 Report 4 Report 4 Report 4 Report 4 Report 4 2024/25 2024/25 2024/25 2024/25 2024/25 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 TOTAL (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) Energy Efficiency Works - Various Properties 36 36 23 36 0 0 0 0 0 36 Revenue Contribution (Salix Reserve) (36) (36) (36) 0 0 0 0 0 (36) Letham Community Wellbeing Hub 95 95 8 95 0 0 0 0 0 95 PH2O 500 (340) 160 160 2,000 25,000 25,000 25,000 12,840 90,000 Crieff Drummond Arms - Regeneration 0 55 55 1 55 2,945 0 0 0 0 3,000 Perth Concert Hall 0 0 0 395 1,000 1,000 500 0 2,895 Perth Museum 167 167 167 0 0 0 0 0 167 Perth Art Gallery 100 (100) 0 0 0 0 0 0 0 0 Sub-Total 4,628 0 (194) 4,434 2,752 4,434 10,490 28,650 27,494 35,500 22,840 129,408 Prudential Borrowing Projects Decarbonisation 739 739 607 739 600 0 0 0 0 1,339 Energy Conservation & Carbon Reduction Programme 146 146 117 146 150 150 150 150 150 896 Pullar House - Purchase & Re-Purposing 0 0 0 10,000 0 0 0 0 10,000 Kinnoull Street Car Park - Purchase 0 0 0 2,250 0 0 0 0 2,250 Sub-Total 885 0 0 885 724 885 13,000 150 150 150 150 14,485 TOTAL - PROPERTY SERVICES 68,812 0 (8,717) 60,095 48,989 60,095 61,585 53,838 49,867 35,650 22,990 284,025 CUSTOMER & DIGITAL SERVICES ICT Infrastructure Replacement and Upgrade Programme 4,927 373 5,300 1,622 5,300 2,739 3,273 7,698 6,472 3,687 29,169 Data & Analytics 600 600 28 600 1,206 720 708 716 733 4,683 Supporting Digital 750 750 162 750 1,175 928 1,185 914 920 5,872 Software Licences (Revenues & Benefits) 51 51 52 51 51 51 49 0 0 202 School Audio-Visual (AV) Equipment Replacement Programme 125 (14) 111 232 111 35 106 35 300 485 1,072 Mosaic - Swift Social Work System Replacement 1,712 11 1,723 925 1,723 437 188 560 0 0 2,908 Revenue Contribution 0 0 0 (124) (124) (124) 0 0 (372) Hardware 22 22 6 22 15 14 14 25 25 115 Licenses 80 80 80 95 71 71 75 75 467 Case Management System 80 (80) 0 0 80 0 0 0 0 80 TOTAL - CUSTOMER & DIGITAL SERVICES 8,347 0 290 8,637 3,027 8,637 5,709 5,227 10,196 8,502 5,925 44,196 HEALTH & SOCIAL CARE Occupational Therapy Equipment 650 650 248 650 250 250 150 250 100 1,650 Technology Enabled Telecare 360 140 500 402 500 1,043 1,042 1,037 1,000 1,000 5,622 Moving & Handling Office Refurbishment 0 0 0 29 0 0 0 0 29 Software Licences 52 52 14 52 53 53 69 70 70 367 Developing Supported Tenancies 0 0 0 229 0 0 0 0 229 TOTAL - HEALTH & SOCIAL CARE 1,062 0 140 1,202 664 1,202 1,604 1,345 1,256 1,320 1,170 7,897 Unallocated Capital Resources 52 (52) 0 0 1,869 0 0 0 0 1,869 TOTAL COMPOSITE NET EXPENDITURE 161,780 (50) (12,741) 148,989 100,130 148,989 146,146 127,745 82,405 63,428 45,552 614,265 (NET OF GRANTS, REVENUE AND 3RD PARTY CONTRIBUTIONS, AND RING FENCED RECEIPTS) CAPITAL INCOME & RECEIPTS General Capital Grant - Scottish Government (26,928) 1 (637) (27,564) (24,370) (27,564) (11,000) (21,752) (12,750) (12,750) (12,750) (98,566) Developer Contributions (3,707) (3,707) (3,707) (2,367) (2,600) (2,600) (2,500) (2,500) (16,274) General Fund - Capital Receipts/Disposal (413) 56 (357) (307) (357) (563) 0 0 0 0 (920) Commercial Property - Capital Receipts/Disposal (713) 713 0 (69) 0 (1,049) 0 (1,088) 0 0 (2,137) Total: Capital Receipts (31,761) 1 132 (31,628) (24,746) (31,628) (14,979) (24,352) (16,438) (15,250) (15,250) (117,897) Annual Composite Borrowing Requirement 130,019 (49) (12,609) 117,361 75,384 117,361 131,167 103,393 65,967 48,178 30,302 496,368 CAPITAL RECEIPTS BROUGHT FORWARD (2,102) 0 (2,102) (2,102) (2,102) (1,270) (2,319) (2,319) (3,407) (3,407) (2,102) CAPITAL RECEIPTS CARRIED FORWARD 1,120 (1) 151 1,270 228 1,270 2,319 2,319 3,407 3,407 3,407 3,407 TOTAL NET COMPOSITE BORROWING REQUIREMENT 129,037 (50) (12,458) 116,529 73,510 116,529 132,216 103,393 67,055 48,178 30,302 497,673 Page 75 of 104
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Project Project Description ENVIRONMENT & INFRASTRUCTURE Traffic & Road Safety Road Safety Initiatives (20mph Zones etc.) A programme of works to improve road safety Road Safety Initiatives - A94 Safety Improvements A programme of works to improve road safety Active Travel Grant - Traffic & Road Safety Schemes A programme of works to improve active travel Additional Road Safety - Pedestrian Crossings A programme of works to provide pedestrian crossing facilities 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. Car Parking Investment - Pitlochry Purchase of land and construction of a public car park Roads & Lighting 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 Street Lighting Replacement of existing street lighting lanterns, columns and cable network. 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 Bridges Bridge Refurbishment Programme Used to appoint specialist external inspection teams and consultants to carry out specialist access bridge inspections and assessments 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 Improvement Schemes A977 Upgrades A programme of works to improve road safety along the A977. Broich Road, Crieff - Road Realignment & Safety Measures Complete Rural Flood Protection Schemes 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 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 Flood Mitigation Measures - Dunkeld and Craigie Burn Design and construction of schemes to reduce the risk of flooding in Dunkeld and Craigie Burn Coastal Change Adaptation Design and construct projects to deal with incidents of coastal erosion Climate Change 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. Waste Strategy Recycling Improvement Fund Complete Prudential Borrowing Projects 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. Vehicle Replacement Programme Fleet vehicle replacement programme Page 76 of 104
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Project Project Description Street Lighting Renewal - LED & Column Replacement Street Lighting LED conversion and column replacement programme HOUSING & COMMUNITIES Community Greenspace 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 Premier Parks Small budget to facilitate refurbishment of former Premier Park upgrades Kinnoull Hill Complete Cemetery Extensions Funding to allow the extension of existing or development of new cemeteries to address the pressure for burial space Housing Projects 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 New Gypsy Traveller Site Feasibility Study for Gypsy Traveller Transient Site Public Transport Community Transport Iniatives Purchase of vehicles and charging infrastructure for community transport/resilience groups to use to deliver on unmet need in the local area. Community Planning Community-Led Asset Transfers Financial assistance for community groups wishing to take on PKC assets using the community asset transfer process ECONOMY, DEVELOPMENT & PLANNING Improvement schemes 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). Bertha Park Link Road Phase 3 of Perth Transport Futures Project which is a new link road (1.4km) running through Bertha Park, connecting Phases 1 and 2. Status - specimen design underway. Perth & Kinross Place-making 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 Other Planning Projects 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 Local Full Fibre Network Provision of gigabit fibre connectivity to Council's buildings to unlock gigabit connectivity for surrounding communities. Complete 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 Page 77 of 104
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Project Project Description 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). Economic Development Investment - Land & Serviced Units Provision of serviced lands and business units - Additional business units (eg Northfields Business Park and Kinross Business Park) - procurement for design in progress followed by construction. Adapt Your Property - Vacant Town & City Centre Space Adapt Your Property supports capital adaptation works to empty and underused commercial property in city & town centres, looking at adaptation to attract new commercial, community or residential use. Commercial Property Investment Programme 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 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 Prudential Borrowing Project Land Purchase & Development (Hotel Development) Development agreement secured and release of grant for heritage subject to progression through planning and cost evidence STRATEGY, PEOPLE & RESOURCES Property Services - Project Support Investment in the Learning Estate Investment to upgrade the infrastructure and environment of our existing school estate Methven Primary School Refurbishment Upgrade of Methven Primary School facilities Kirkmichael Primary School Upgrades Upgrade of Kirkmichael Primary School facilities North/West Perth - New Primary School New primary school located at Bertha Park Riverside Primary New School Replacement of North Muirton and Balhousie primary schools 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 Blairgowrie Recreation Centre - Replacement Replacement of the Recreation Centre in Blairgowrie Technology Upgrades Upgrade to practical teaching environment within the existing school estate Property Services - Projects & Contracts Free School Meal Expansion Programme Upgrading kitchen and dining facilities to provide the enhanced Free School Meals programme Community Campus Access Adaptations To support adaptations in schools and community campuses to help facilitate increased community access Property Services - Property Service Manager 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 This project aims to refurbish the main waste transfer station building to provide a safe environment for workers. The project will involve a complete re-cladding of the existing structure, new doors and new services installation. Some initial enabling work are being carried out currently. Energy Efficiency Works - Various Properties Focusing on a spend to save with projects aiming to reduce energy cost across the property estate Letham Community Wellbeing Hub Complete Page 78 of 104
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Project Project Description PH2O Replacement of Perth Leisure Pool and Dewars Ice Rink. On hold pending outcome of Leisure and Culture Assets Review Crieff Drummond Arms - Regeneration Demolition of former hotel, regeneration of site for housing use Perth Museum Complete Perth Art Gallery Refurbishment of temporary galleries - scheduled for completion November 2023 Prudential Borrowing Projects Decarbonisation 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 This budget is focused on works to reduce PKC energy consumption and help achieve annual KPI energy reduction of 3% Pullar House - Purchase & Re-Purposing Purchase and development of Pullar House to create a shared Public Sector Hub Kinnoull Street Car Park - Purchase Purchase of Kinnoull Street Multi-Storey Car Park to increase Perth and Kinross Council car parking capacity to support delivery of the Perth City Integrated Investment Proposal Customer & Digital Services 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 Hardware Funding of additional or bespoke IT Hardware for Communities Staff Licenses Funding of software contracts Case Management System New system for management of client cases HEALTH & SOCIAL CARE Occupational Therapy Equipment Supply and install of occupational therapy equipment following referral from heakth and social care professionals. Technology Enabled Telecare Replacement of existing analogue Community Alarm devices to digital alarm units prior to UK switch-off of analogue network, as well as ongoing rolling replacement programme. Moving & Handling Office Refurbishment Relocate staff base, currently under review Software Licences Various licences for essential social care systems Developing Supported Tenancies Contribution towards flagship core and cluster facility for adults with learning disabilities’ Page 79 of 104
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APPENDIX III Approved Proposed Revised Actual Projected Revised Revised Revised Revised Revised Budget Budget Budget to Outturn Budget Budget Budget Budget Budget 05-Feb-25 Adjustment 31-Jan-25 Report 4 Report 4 Report 4 Report 4 Report 4 Report 4 Report 4 Report 4 2024/25 2024/25 2024/25 2024/25 2024/25 2025/26 2026/27 2027/28 2028/29 TOTAL £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 Council House New Build Programme Fairfield, Perth 4 4 3 4 0 0 0 0 4 Council Tax (Second Income) 0 0 0 0 0 0 0 0 Scottish Government Subsidy 0 0 0 0 0 0 0 0 4 0 4 3 4 0 0 0 0 4 Lynedoch Road, Methven - Phase 2 1,175 1,175 1,147 1,175 0 0 0 0 1,175 Council Tax (Second Income) (240) (240) (240) (240) 0 0 0 0 (240) Scottish Government Subsidy 0 0 0 0 0 0 0 0 935 0 935 907 935 0 0 0 0 935 Lynedoch Road, Methven - Phase 3 1,097 1,097 955 1,097 0 0 0 0 1,097 Council Tax (Second Income) (100) (100) (100) (100) 0 0 0 0 (100) Scottish Government Subsidy (556) (556) (556) (556) 0 0 0 0 (556) 441 0 441 299 441 0 0 0 0 441 Beechgrove, Perth 0 10 10 10 10 0 0 0 0 10 Council Tax (Second Income) 0 0 0 0 0 0 0 0 Scottish Government Subsidy 0 0 0 0 0 0 0 0 0 10 10 10 10 0 0 0 0 10 Balhousie, Perth 37 78 115 115 115 0 0 0 0 115 Council Tax (Second Income) 0 0 0 0 0 0 0 0 Scottish Government Subsidy 0 0 0 0 0 0 0 0 0 37 78 115 115 115 0 0 0 0 115 Kinloch Gardens, Rattray (20 units) 3,633 (1,412) 2,221 1 2,221 1,412 0 0 0 3,633 Council Tax (Second Income) (400) 400 0 0 (400) 0 0 0 (400) Scottish Government Subsidy (1,944) (1,944) (1,944) 0 0 0 0 (1,944) 1,289 (1,012) 277 1 277 1,012 0 0 0 1,289 Weavers Gait, Kinross (6 units) 1,348 1,348 1,351 1,348 0 0 0 0 1,348 Council Tax (Second Income) (120) (120) (120) (120) 0 0 0 0 (120) Scottish Government Subsidy 0 0 0 0 0 0 0 0 Communted sums (550) (550) (550) 0 0 0 0 (550) 678 0 678 1,231 678 0 0 0 0 678 Future Developments 0 0 0 5,500 5,500 5,596 4,725 21,321 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 5,500 5,500 5,596 4,725 21,321 Total Council House New Build 3,384 (924) 2,460 2,566 2,460 6,512 5,500 5,596 4,725 24,793 Increase in Council House Stock Council House Buy-Backs 10,430 3,564 13,994 12,944 13,994 4,000 4,000 4,000 4,000 29,994 Commuted Sums 0 (60) (60) (60) 0 0 0 0 (60) Scottish Government Subsidy (1,400) (1,960) (3,360) (1,400) (3,360) 0 0 0 0 (3,360) 9,030 1,544 10,574 11,544 10,574 4,000 4,000 4,000 4,000 26,574 National Trust Scotland (NTS), Dunkeld Purchase of properties (20 units) 4,909 4,909 4,475 4,909 539 0 0 0 5,448 Council Tax (Second Income) (700) (700) (700) 0 0 0 0 (700) Scottish Government Subsidy (1,947) (1,947) (1,947) 0 0 0 0 (1,947) 2,262 0 2,262 4,475 2,262 539 0 0 0 2,801 Total Increase in Council House stock 11,292 1,544 12,836 16,019 12,836 4,539 4,000 4,000 4,000 29,375 Lock-ups and Garage Sites 50 (50) 0 0 50 0 0 0 50 Standard Delivery Plan Heating Upgrade Contract Works 1,335 1,335 618 1,335 1,320 811 0 0 3,466 Rewiring, Infrastructure & Property Refurbishment 1,128 1,128 919 1,128 1,350 0 0 0 2,478 Triple Glazing 1,116 363 1,479 1,089 1,479 0 0 0 0 1,479 HRA CAPITAL INVESTMENT PROGRAMME SUMMARY OF CAPITAL RESOURCES AND EXPENDITURE 2024/25 to 2028/29 PERTH AND KINROSS COUNCIL 6 Page 81 of 104
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APPENDIX III Approved Proposed Revised Actual Projected Revised Revised Revised Revised Revised Budget Budget Budget to Outturn Budget Budget Budget Budget Budget 05-Feb-25 Adjustment 31-Jan-25 Report 4 Report 4 Report 4 Report 4 Report 4 Report 4 Report 4 Report 4 2024/25 2024/25 2024/25 2024/25 2024/25 2025/26 2026/27 2027/28 2028/29 TOTAL £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 Controlled Door Entry 34 30 64 47 64 0 0 0 0 64 - less Third Party Contribution (5) (7) (12) (12) 0 0 0 0 (12) Kitchen Modernisation Programme 1,352 1,352 835 1,352 2,025 0 0 0 3,377 Bathroom Modernisation Programme 998 998 885 998 0 0 0 0 998 Adaptations (OT) 500 500 180 500 0 0 0 0 500 External Fabric 1,684 6 1,690 1,216 1,690 0 0 0 0 1,690 - less Third Party Contribution (77) (6) (83) (83) 0 0 0 0 (83) Energy Efficiency 472 (235) 237 182 237 235 0 0 0 472 Multi Storey Flats 304 (88) 216 56 216 1,619 0 0 0 1,835 Environmental Improvements 432 432 411 432 0 0 0 0 432 Fire Precaution Measures 83 83 75 83 0 0 0 0 83 - less Third Party Contribution (20) (20) (20) 0 0 0 0 (20) Sound Insulation 389 (366) 23 1 23 408 0 0 0 431 Structural Improvements 256 (243) 13 8 13 1,228 0 0 0 1,241 Retrofit Works 0 122 122 122 40 0 0 0 162 SHQS Future Developments 0 0 0 4,066 4,100 4,669 3,351 16,186 Total Standard Delivery Plan 9,981 (424) 9,557 6,522 9,557 12,291 4,911 4,669 3,351 34,779 Other Investment in Council House Stock Total Major Adaptations to Council House Stock 10 10 2 10 0 0 0 0 10 Rannoch Road, Perth - Housing Regeneration 205 57 262 135 262 53 0 0 0 315 149-151 Dunkeld Road, Perth 20 20 2 20 0 0 0 0 20 St.Catherine's Square Redevelopment 3,393 (3,325) 68 12 68 3,325 0 0 0 3,393 Shops & Offices 50 (50) 0 0 289 0 0 0 289 Greyfriars and Satellite Sites 50 (20) 30 10 30 52 0 0 0 82 Sheltered Housing 0 50 50 50 0 0 0 0 50 Double Dykes Chalet Replacement 5,949 5,949 1,174 5,949 573 0 0 0 6,522 - Scottish Government Grant (3,426) (3,426) (19) (3,426) 0 0 0 0 (3,426) General Capital Works 147 147 81 147 0 0 0 0 147 Upgrade and Replacements to Lifts Programme 121 (100) 21 21 100 0 0 0 121 ICT Expenditure 62 (30) 32 32 140 0 0 0 172 Mortgage to Rent 315 (174) 141 141 141 174 0 0 0 315 - less Government Grant (90) (90) (90) (90) 0 0 0 0 (90) Total Other Investment in Council House Stock 6,806 (3,592) 3,214 1,448 3,214 4,706 0 0 0 7,920 Total Net Expenditure 31,513 (3,446) 28,067 26,555 28,067 28,098 14,411 14,265 12,076 96,917 Income CAPITAL RECEIPTS (112) (90) (202) (202) (202) 0 0 0 0 (202) CFCR (1,833) (1,833) (1,833) (1,483) (1,546) (1,613) (2,013) (8,488) TOTAL BORROWING REQUIREMENT 29,568 (3,536) 26,032 26,353 26,032 26,615 12,865 12,652 10,063 88,227 Page 82 of 104
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SIGNIFICANT CAPITAL PROJECTS PROGRESS UPDATE APPENDIX IV Project Title Total Gross Budget (£'000) 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 Easter 2025 - new centre currently scheduled to open late 2024 Yes Yes On track Yes - on-site. The project has been delayed due to leaks in the pool. Commissioning work continues, the opening date is to be confirmed. North/West Perth New Primary School* 24,000 0 24,000 24,000 Summer 2028 No No On track Yes. Project has been put on hold for 2 years due to slow build out rates at Bertha Park. 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 Yes - on-site. Works are on programme for the school to open in Augus 2025. Harris Academy/Invergowrie Extension 5,200 0 5,200 5,200 Late 2023 Yes Yes On track Yes. 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 Completion of project imminent with official opening taking place on 31 March 2025. Site will remain operational in light of works associated with completion and defects e.g. as-built drawings, H&S file, minor snagging, final landscaping and associated maintenance. Bertha Park Link Road 13,200 0 13,200 13,200 December 2026 Letter of Intent Yes On programme N/a Detailed design currently being undertaken by Sweco. Letter of Intent issued to BAM UK & Ireland for advance works with a view to awarding the Stage 1 contract in June 2025 and Notice to Proceed to Stage 2 (main construction) in August 2025. Site clearance has been undertaken. Comrie Flood Protection Scheme 40,353 32,657 7,696 7,696 Autumn 2026 Yes Yes Contract awarded Yes Works are on programme. Site setup, site clearance and formation of construction access routes are now largely complete. Main civils construction works commenced March 2025. Perth Eco Innovation Park* 32,817 16,061 16,756 16,756 Not currently programmed No No Design package awarded - design programme on track Yes [See previous reports in relation to funding.] Amey's performance on the project deteriotated signficantly from earlyl January 2025 - insufficiently resourced, changes in personnel, programme delay, poor communications and quality issues. IN liaison with Legal, Default Notice was issued in February, followed by a Termination Notice in March. All outputs issued to PKC. JDLT advised. Strategy and Scope being prepared to engage Trekelion through Scape who have the ability to engage quickly minimising programme risk. PH2O 90,000 0 90,000 90,000 Not currently programmed No No Thimblerow approved as new site for Ph2O project at Council on 4 September 2024. Yes Project Board established, programme under development, project no longer on hold. * Third Party Funding excludes Developer Contributions and receipts to be received in future years beyond the current 6-year programme. 6 Page 83 of 104
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Our vision is a Perth and Kinross where everyone can live life well, free from poverty and inequality ___________________________________________________________________ Committee or Board: Finance & Resources Committee Date of Meeting: 30 April 2025 Report Title: Treasury Activity and Compliance Report 2024/25 – 6 months to 31 March 2025 Report Number: 25/101 Report Author: John Jennings, Senior Accountant Organisational Lead: Scott Walker, Chief Finance Officer ___________________________________________________________________ 1. Purpose 1.1 The purpose of this Report is to update the Committee on Treasury Activity for the period 1 October 2024 to 31 March 2025 and to report on compliance with the Council’s Treasury Management Policy Statement (TMPS), Investment Strategy and Prudential Indicators. 1.2 This Treasury Activity and Compliance Report covers: Economic Background Treasury Activity Compliance Investment Strategy Compliance & Performance Prudential Indicators Proposed Variation to Limitations to Authority Conclusion Impact Value Assessment Appendices 2. Recommendation(s) It is recommended that the Committee: 2.1 Note the contents of this report. 2.2 Approves the proposed variation to the Limitations to Authority, as detailed in Section 8 of this report and shown at Appendix V. 7 Page 85 of 104
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3. Economic Background 3.1 The Bank of England’s Monetary Policy Committee (MPC) reduced the UK Bank Base Rate from 5.00% to 4.75% at their meeting in November 2024. This followed a period where inflation had continued to fall and had dropped below the MPC’s 2% target in September 2024. The Bank Base rate was reduced further at the meeting in February 2025 to 4.50% as inflation remained at low levels, despite having increased from its previous low point. During this period, economic growth in the UK was also at very low levels. 3.2 CPI inflation increased from 1.7% in September 2024 and peaked at 3% for January 2025 before dropping to 2.8% for February 2025. The largest contribution to the falls in inflation were from the price of clothing. UK GDP (Gross Domestic Product) grew by 0.1% to December 2024 following a period of no growth in the previous quarter. 3.3 Current forecasts of the Bank Base Rate are that they will continue to fall but at a slower rate than previously anticipated due to rising inflationary expectations and global economic uncertainties. 3.4 Internationally, the Eurozone also experienced growth of 0.1% in the 3 months to 31 December 2024, whilst CPI Inflation eased to 2.3% in February 2025 from the 6-month high of 2.5% in January. Eurozone interest rates were reduced to 2.5% in March 2025. In the US, GDP fluctuated over the period closing at 2.4% at the end of December 2024, whilst inflation increased over the period. The US interest rate was reduced by 0.5% to the range of 4.25% to 4.5% in December 2024. 3.5 The Public Works Loan Board’s (PWLB) certainty fixed interest rates for the 6 months to 31 March 2025, which are based on yields on UK gilts, are shown in the graph at Appendix I. As a result of mixed economic data and market instability, borrowing rates showed continuing volatility over the period, and generally rose over the 6-month period. Whilst the 1-year rate fell slightly over the period, all other rates were higher by the end of the 6-month period. 4. Treasury Activity 4.1 A summary of the Council’s treasury position and transactions is shown at Appendix II. The main activities are detailed below. 4.2 During the period there were 5 new fixed PWLB loans borrowed, summarised as follows: On 20 December 2024 there were two new PWLB fixed Maturity loans borrowed. Both loans were for £10 million, with the first borrowed for a duration of 3 years at 4.91% and the second borrowed for 4 years at 4.88%. On 21 February 205 there a PWLB fixed EIP (Equal Instalments of Principal) loan was borrowed for £30million for 3 years at 4.47% using the PWLB’s HRA discounted interest rate. Page 86 of 104
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On 11 March 2025 there was a 1 year fixed rate PWLB maturity loan for £5million at 4.82% On 21 March 2025 there was a fixed rate PWLB EIP loan for 2 years at 4.82% for £25million. 4.3 Overall the Council undertook borrowing of £80 million at an average rate of 4.71% and average term of 2.5 years during the 6-month period. 4.4 There was also the repayment of one maturing fixed rate PWLB loan of £7.5 million borrowed at 1.88% for 8 years. Therefore, the Council’s total long- term debt increased by £72.5 million from £642.7 million at an average interest rate of 2.68% to £715.2 million at an average interest rate of 2.91% as at 31 March 2025. 4.5 There were eight short-term market loans borrowed in the period to manage daily cashflows. This position arose as part of the adopted strategy during periods when PWLB rates were high and rising and allowed the Council to defer some longer-term borrowing. Consequently, a total of £37million was borrowed for an average of 46 days at an average rate of 4.99%. There were no such loans outstanding as at 31 March 2025. 4.6 Common Good and Charitable Fund balances held on fixed deposit with the Loans Fund increased to £2.711 million at 31 March 2025 from £2.415 million. The average interest rate reduced from 4.80% to 4.02% at the end of the period. Funds held from associated bodies and organisations decreased from £3.593 million to £2.753 million over the period, in line with their own cash flow requirements, whilst the average rate paid on these funds decreased from 4.47% to 3.82% in line with the rates applicable on individual loans depending on the balance held, and which are linked to the prevailing Bank Base Rate. 4.7 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 Fixed Term Deposits 4.8 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. 4.9 There were 12 fixed rate deposits made in the 6 months to 31 March 2025 (totalling £63 million) and at an average interest rate of 5.33% for an average term of 39 days. In comparison to the previous 6 months to the end of September, fixed deposit activity in the current period decreased. The deposits were undertaken where opportunities arose within cashflow projections and were spread amongst other Local Authorities and UK Banks. The majority of the deposits were within the Local Authority market where Page 87 of 104
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demand for funds grew and therefore interest rates increased, particularly as the year-end approached. The average term of the fixed deposits undertaken in the 6-month period was39 days and was shorter than the previous period (64 days). The fixed deposits undertaken in the current period will generate interest of £354,667 by their maturity. Investments for Daily Cashflow Requirements 4.10 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 decreased slightly from £6.97 million in the previous quarter to £6.11 million at the end of the current period, reflecting the Council’s lower cash balances and borrowing requirements. The average interest rate achieved on these accounts over the period reduced from 5.16% to 4.72%, in line with movements in the Bank Base Rate. Money Market Funds, which operate on instant access terms, were used extensively over the period. The average amount invested decreased from £9.7 million in the previous period to £7.7 million in the current period, whilst the average interest rate decreased from 5.16% to 4.73%. The activity on these accounts reflects the need to keep a sufficient level of funds for more immediate cashflow purposes over the period. Interest generated on these investments over the 6-month period amounted to £390,233. 4.11 The total amount of investments outstanding as at 31 March 2025 was £24.117 million compared to £41.456 million at the end of September 2024. The overall average rate of interest on the investments outstanding increased from 5.09% to 5.50% over this period. This reflects the higher rates available in the Local Authority market towards the financial year-end. 4.12 Total income generated on investments undertaken during the period totals £744,900 (£1.317 million in the 6 months to 30 September 2024). 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 deposits and Money market Fund investments decreased. 4.13 All of the above investment activities are consistent with the Council’s current investment strategy and cashflow requirements. 5. Compliance 5.1 For the period ending 31 March 2025, 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). Page 88 of 104
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5.2 Appendix III shows the list of approved counterparties, based on the Council’s current lending policy, as at April 2025. 5.3 For the period ending 31 March the average closing cleared bank balance was £21,056.07 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. 6. Investment Strategy Compliance and Performance 6.1 The Treasury Investment Strategy for 2024/25 was approved by the Council at its meeting on 6 March 2024 (report 24/69 refers). 6.2 In the current period, the level of the Council’s investments peaked at £55.529 million on 16 October and reduced to £24.117 million by 31 March 2025. The average daily investment balance over the period was £33.154 million, which reduced from an average of £62.145 million in the previous 6 months and from £102.743 million in the same period of last year. This highlights the steady reduction in investment balances over the last year as funds were applied in financing the approved Capital programme. 6.3 The approved 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 4.10 above. There were no other risks identified in the period. 6.4 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. 6.5 The budgeted income in 2024/25 for Commercial Property investments is £1.856 million whilst the latest projection is £1.924 million. There were no new property investments entered into during the current period. 7. Prudential Indicators 7.1 Prudential Indicators for 2024/25 to 2029/30 were approved by the Council at its meeting on 6 March 2024 (report 24/69 refers) as part of the Annual Treasury & Investment Strategy report. 7.2 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 this 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. These will therefore be kept under review. Page 89 of 104
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8 Amendment to the Daily Limitations to Authority 8.1 As Treasury Management activities are undertaken on a daily basis under delegated powers, the Council has approved the Daily Limitations to Authority that applies to each post involved in Treasury Management activities. However, these limits have not been reviewed for a number of years and now require to be updated. 8.2 The main proposed change to the Daily Limits to Authority is to update each job title to reflect the Council’s new structure, including removing posts that no longer exist in the current structure. 8.3 In addition, the current approved Daily Limits to Authority allow the Senior Account and Treasury Management Officer to arrange temporary borrowing in line with cashflow requirements. To reflect the Council’s current borrowing requirements and borrowing strategy, and for the avoidance of doubt, it is proposed to specifically include that such borrowing can be for periods of up to 1 year. This would allow these officers to undertake borrowing opportunities that may arise in a timeous manner. 8.4 The proposed revised full list of the Daily Limitations to Authority is shown at Appendix V. 9 Conclusions 9.1 The Bank of England’s MPC reduced the Bank Base Rate to 4.75% in November and again to 4.50% in February 2025 due to a period of low inflation and economic growth. However, expectations for future cuts in the Bank Base Rate have reduced due to increasing inflationary pressures and uncertainties in the current economic climate. 9.2 Public Works Loans Board (PWLB) borrowing rates continued to be volatile over the period due to inflationary expectations and mixed economic data. Over the period the rates rose and were higher by 31 March 2025, with only the 1-year rate falling slightly. 9.3 There were five new fixed PWLB loans totalling £80 million. The average rate was 4.71% and duration 2.68 years. There was repayment of one maturing fixed PWLB Loan, totalling £7.5 million at 1.88%. 9.4 Investment activity in the period consisted of a reduced level of fixed term deposits, whilst instant access and Money Market Funds were used to meet day-to-day cashflow requirements, whilst the total level of investments outstanding reduced. 9.5 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. Page 90 of 104
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10. Impact and Value Assessment Impact and Value Assessment 11. Appendices 11.1 Appendix I – PWLB Fixed Maturity Interest Rates from 1 October 2024 to 31 March 2025 11.2 Appendix II – Summary of the Treasury Position and Transactions from 1 October 2024 to 31 March 2025 11.3 Appendix III – Approved Investment Counterparty List 11.4 Appendix IV – Monitoring of Prudential Indicators – Period ending 31 March 2025 11.5 Appendix V – Proposed Daily Limitations to Authority Page 91 of 104
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SUMMARY OF THE TREASURY POSITION AND TRANSACTIONS 1 OCTOBER 2024 TO 31 MARCH 2025 APPENDIX II 1 LONG TERM BORROWING (a) Long Term Borrowing 1 October to 31 March 2025 Average Average Amount No. Rate (%) Life (years) (£) PWLB - Fixed Maturity 3 4.88% 3.0 25,000,000 PWLB - Fixed EIP Loan 2 4.63% 2.5 55,000,000 5 4.71% 2.7 80,000,000 (b) Long Term Debt Repayments 1 October to 31 March 2025 Average Amount No. Rate (%) (£) PWLB - Maturity Loan - Scheduled Repayments 1 1.88% 7,500,000 1 1.88% 7,500,000 (c) Long Term Debt Outstanding Outstanding Average Outstanding Average 30-Sep-24 Rate 31-Mar-25 Rate £ £ Public Works Loan Board 579,500,000 2.48% 652,000,000 2.76% Money Market Loans 63,200,000 4.51% 63,200,000 4.51% TOTAL 642,700,000 2.68% 715,200,000 2.91% 2 SHORT TERM BORROWING (a) Short Term Market Borrowing - 1 October to 31 March 2025 Average Average Average Interest No. Amount (£) Rate (%) Term (Days) (£) Temporary borrowing 8 4,625,000 4.99% 46 235,204.11 8 4,625,000 4.99% 46 235,204.11 (b) Short Term Borrowing Outstanding Outstanding Average Outstanding Average 30-Sep-24 Rate 31-Mar-25 Rate £ £ Market Borrowing 0 0.00% 0 0.00% Common Good and Charitable Funds 2,414,508 4.80% 2,710,569 4.02% Local Trusts & Investors 3,592,640 4.47% 2,752,542 3.82% TOTAL 6,007,148 4.60% 5,463,110 3.92% 7 Page 95 of 104
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SUMMARY OF THE TREASURY POSITION AND TRANSACTIONS 1 OCTOBER 2024 TO 31 MARCH 2025 APPENDIX II 3 INVESTMENTS (a) Investment Transactions - 1 October to 31 March 2025 Average Average Average Total Fixed Deposits & Investments No. Amount (£) Rate (%) Term (Days) Interest (£) Banks 2 5,000,000 4.93% 44 58,604.11 Other Local Authorities 10 5,300,000 5.40% 38 296,063.01 12 5,250,000 5.33% 39 354,667.12 Average Average Total Instant/Notice Accounts & Money Market Funds Amount (£) Rate (%) Interest (£) Instant Access/Notice accounts 1,163,982 4.42% 15,880.65 Money Market Funds 7,754,089 4.73% 374,352.31 6,112,343 4.72% 390,232.96 (b) Investments Outstanding Outstanding Average Outstanding Average 30-Sep-24 Rate 31-Mar-25 Rate £ £ UK Banks 1,305,563 4.87% 42,322 3.59% Foreign Banks and Institutions 26,000,000 5.15% 0 0.00% Other Local Authorities 5,000,000 5.00% 15,000,000 6.07% Money Market Funds 9,150,000 5.02% 9,075,000 4.57% TOTAL 41,455,563 5.09% 24,117,322 5.50% Page 96 of 104
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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 12 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 12 months £80million Group limit Lloyds Banking Group plc (RFB) UK A+, F1 In range 12 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 In range 6 months 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 12 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 24 months Wells Fargo Bank, NA USA AA-, F1+ In range 12 months 7 Page 97 of 104
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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: 03-Apr-25(5) - NRFB = Non Ring Fenced Bank, RFB = Ring Fenced Bank Page 98 of 104
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PERTH AND KINROSS COUNCIL PRUDENTIAL INDICATORS - 6 MONTHS ENDING 31 MARCH 2025 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 7.09% 7.52% 8.77% 9.49% 9.93% 10.19% Prudential Limit - HRA 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% Estimated Ratio of Financing Costs to Revenue 22.84% 24.59% 26.95% 27.92% 28.44% 28.68% 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: As at Projected Projected Projected Projected Projected 31-Mar-25 31-Mar-26 31-Mar-27 31-Mar-28 31-Mar-29 31-Mar-30 Net External Borrowing* 805,160,000 947,108,000 1,069,991,000 1,125,474,000 1,183,458,000 1,222,957,000 Gross External Borrowing* 829,277,000 967,108,000 1,089,991,000 1,145,474,000 1,203,458,000 1,242,957,000 Capital Financing Requirement 907,732,000 1,049,735,000 1,149,535,000 1,213,558,000 1,255,671,000 1,285,537,000 *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 151,709,000 149,363,000 130,268,000 89,518,000 65,909,000 48,527,000 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 (55,859,000) 30,058,000 39,897,000 18,140,000 28,870,000 14,519,000 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 4 on 30 April 2025. HRA Programme 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 Current estimate 28,067,000 28,098,000 14,411,000 14,265,000 12,076,000 20,044,000 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 8,236,000 9,850,000 (2,872,000) (7,840,000) (7,968,000) 44,000 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 4 on 30 April 2025. 7 Page 99 of 104
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PERTH AND KINROSS COUNCIL PRUDENTIAL INDICATORS - 6 MONTHS ENDING 31 MARCH 2025 APPENDIX IV 4 Estimate of Capital Financing Requirement The estimate (as at April 2025) 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 116,529,000 134,116,000 102,443,000 66,105,000 48,178,000 30,302,000 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 (61,378,000) 31,738,000 36,662,000 16,920,000 28,439,000 14,080,000 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 4 on 30 April 2025. HRA Programme 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 Current Estimated Capital Financing Requirement 26,032,000 26,615,000 12,865,000 12,652,000 10,063,000 17,659,000 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 8,034,000 10,445,000 (2,414,000) (7,328,000) (7,641,000) (41,000) 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 4 on 30 April 2025. 5 External Debt (Gross and Net) As at Projected Projected Projected Projected Projected External Borrowing 31-Mar-25 31-Mar-26 31-Mar-27 31-Mar-28 31-Mar-29 31-Mar-30 Public Works Loan Board 652,000,000 794,500,000 922,000,000 1,002,000,000 1,064,500,000 1,109,500,000 Market Bonds (LOBOs) 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 Special Loans 2,710,569 2,710,569 2,710,569 2,710,569 2,710,569 2,710,569 Temporary Loans/Other Borrowing 2,752,542 2,500,000 2,300,000 2,200,000 2,100,000 2,000,000 Other Long Term Liabilities (PPP/PFI) 108,613,977 104,197,227 99,780,477 95,363,727 90,946,977 85,546,177 Total Gross External Debt 829,277,087 967,107,795 1,089,991,045 1,145,474,295 1,203,457,545 1,242,956,745 Short Term Investments (24,117,322) (20,000,000) (20,000,000) (20,000,000) (20,000,000) (20,000,000) Long Term Investments 0 0 0 0 0 0 Total Net External Debt 805,159,766 947,107,796 1,069,991,046 1,125,474,296 1,183,457,546 1,222,956,746 Note: Operational Boundary 830,000,000 968,000,000 1,090,000,000 1,146,000,000 1,204,000,000 1,243,000,000 Authorised Limit 1,280,000,000 1,300,000,000 1,300,000,000 1,300,000,000 1,300,000,000 1,300,000,000 The Operational Boundary and Authorised Limit are based on Gross External Debt. Page 100 of 104
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PERTH AND KINROSS COUNCIL PRUDENTIAL INDICATORS - 6 MONTHS ENDING 31 MARCH 2025 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 30 September 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% 5.09% over 12 months and < 24 months 0% 35% 3.27% over 2 years and < 5 years 0% 50% 12.35% over 5 years and < 10 years 0% 75% 5.05% over 10 years 10% 95% 74.25% The maurity profile for the Council's current long-term portfolio as at 31st March 2025, 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 37,500,000 22,500,000 67,500,000 20,000,000 5,000,000 2,000,000 93,500,000 404,000,000 0 652,000,000 LOBOs 0 0 20,000,000 0 0 13,000,000 25,200,000 5,000,000 0 63,200,000 Other 0 0 0 0 0 0 0 0 0 0 PPP/PFI 4,416,750 4,416,750 14,234,300 21,603,200 63,171,000 771,977 0 0 0 108,613,977 Total 41,916,750 26,916,750 101,734,300 41,603,200 68,171,000 15,771,977 118,700,000 409,000,000 0 823,813,977 Percentage 5.09% 3.27% 12.35% 5.05% 8.28% 1.91% 14.41% 49.65% 0.00% 100.00% Page 101 of 104
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SCHEDULE 5.4 Treasury Management Daily Limitations to Authority TITLE CHIEF EXECUTIVE Delegated authority in accordance with the Financial Regulations and Scheme of Administration with particular reference to the approved Treasury Policy Statement, and consistent with current budget requirements. CHIEF FINANCE OFFICER Delegated authority in accordance with the Financial Regulations and Scheme of Administration with particular reference to the approved Treasury Policy Statement, and consistent with current budget requirements. CORPORATE ACCOUNTING MANAGER Long Term Borrowing (Fixed or Variable) up to £5 million Temporary Borrowing } Fixed, Notice or Call with within cashflow requirements Temporary Investment } Approved Organisations within approved Investment Limits Variation of Loan Terms - in line with the above limits SENIOR ACCOUNTANT – CORPORATE ACCOUNTING Long Term Borrowing – Under instruction of above officers, within their appropriate limitations to authority. Temporary Borrowing } Fixed, Notice or Call with within cashflow requirements, up to 1 year Temporary Investment } Approved Organisations within approved Investment Limits Variation of Loan Terms - in line with the above limits TREASURY MANAGEMENT OFFICER Long Term Borrowing – Under instruction of above officers, within their appropriate limitations to authority. Temporary Borrowing } Fixed, Notice or Call with within cashflow requirements, up to 1 year Temporary Investment } Approved Organisations within approved Investment Limits Variation of Loan Terms - in line with the above limits ACCOUNTANT/SENIOR INCOMES OFFICER Temporary Borrowing } Fixed, Notice or Call with within immediate cashflow requirements Temporary Investment } Approved Organisations within approved Investment Limits Variation of Loan Terms - in line with the above limit. Appendix V 7 Page 103 of 104
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