Appendix 4

Perth and Kinross Council · 15 June 2022
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PERTH AND KINROSS COUNCIL
PRUDENTIAL INDICATORS - QUARTER ENDING 31 MARCH 2022
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.
2022/23 2023/24 2024/25 2025/26 2026/27 2027/28
Prudential Limit - General Fund 15.00% 15.00% 15.00% 15.00% 15.00% 15.00%
Estimated Ratio of Financing Costs to Revenue 6.86% 7.78% 8.72% 9.46% 9.56% 9.21%
Prudential Limit - HRA 30.00% 30.00% 30.00% 30.00% 30.00% 30.00%
Estimated Ratio of Financing Costs to Revenue 22.79% 23.88% 23.62% 23.23% 22.98% 22.61%
2 Gross & Net Borrowing and Capital Financing Requirements
For prudence, net external borrowing must not exceed the total capital financing requirement, thus ensuring that over the medium term, borrowing is only undertaken for capital purposes.
The estimated total net borrowing and Capital Financing Requirement at the end of each of the years are as follows:
Actual as at Projected Projected Projected Projected Projected Projected
31-Mar-22 31-Mar-23 31-Mar-24 31-Mar-25 31-Mar-26 31-Mar-27 31-Mar-28
Net External Borrowing* 491,652,000 559,341,000 802,938,000 968,676,000 1,027,713,000 1,073,296,000 1,103,879,000
Gross External Borrowing* 743,687,000 729,341,000 892,938,000 1,018,676,000 1,077,713,000 1,123,296,000 1,153,879,000
Capital Financing Requirement 618,465,000 749,841,000 912,304,000 1,039,411,000 1,100,396,000 1,143,879,000 1,176,156,000
*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 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28
Current estimate 164,452,000 189,177,000 139,954,000 63,769,000 54,830,000 45,858,000
Original Budget Estimate (including Budget Motion) 178,562,000 175,493,000 128,749,000 63,376,000 54,519,000 45,737,000
Movement in Estimated Capital Expenditure (14,110,000) 13,684,000 11,205,000 393,000 311,000 121,000
The Original Budget Estimates are those per the 2022/23 to 2027/28 Composite Capital Budget Report on 23 February 2022
The latest estimates for Capital Expenditure are based on the SP&R Capital Monitoring Report No. on 20 April 2022.
HRA Programme 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28
Current estimate 17,963,000 15,983,000 13,871,000 19,995,000 16,044,000 16,500,000
Original Budget Estimate 17,299,000 15,983,000 13,886,000 20,085,000 16,044,000 16,500,000
Movement in Estimated Capital Expenditure 664,000 0 (15,000) (90,000) 0 0
The Original Budget Estimates are those per the 2020/21 Housing & Communities Budget Report on 24 January 2022.
The latest estimates for Capital Expenditure are based on the SP&R Capital Monitoring Report No. on 20 April 2022.

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PERTH AND KINROSS COUNCIL
PRUDENTIAL INDICATORS - QUARTER ENDING 31 MARCH 2022
APPENDIX IV
4 Estimate of Capital Financing Requirement
The estimate (as at May 2022) of the Capital Financing Requirement (ie new borrowing requirement for Capital Expenditure) for each year based on these plans is as follows:
Composite Programme 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28
Current Estimated Capital Financing Requirement 125,644,000 155,102,000 117,980,000 41,974,000 35,115,000 26,188,000
Original Budget Estimate (including Budget Motion) 140,264,000 137,906,000 106,775,000 41,581,000 34,804,000 26,067,000
Movement in Estimated Capital Financing Requirement (14,620,000) 17,196,000 11,205,000 393,000 311,000 121,000
The Original Budget Estimates are those per the 2022/23 to 2027/28 Composite Capital Budget Report on 23 February 2022
The latest estimates for Capital Expenditure are based on the SP&R Capital Monitoring Report No. on 20 April 2022.
HRA Programme 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28
Current Estimated Capital Financing Requirement 15,349,000 13,338,000 10,542,000 16,035,000 11,765,000 12,000,000
Original Budget Estimate 14,685,000 13,338,000 10,557,000 16,125,000 11,765,000 12,000,000
Movement in Estimated Capital Financing Requirement 664,000 0 (15,000) (90,000) 0 0
The Original Budget Estimates are those per the 2020/21 Housing & Communities Budget Report on 24 January 2022.
The latest estimates for Capital Expenditure are based on the SP&R Capital Monitoring Report No. on 20 April 2022.
5 External Debt (Gross and Net)
As at Projected Projected Projected Projected Projected Projected
External Borrowing 31-Mar-22 31-Mar-23 31-Mar-24 31-Mar-25 31-Mar-26 31-Mar-27 31-Mar-28
Public Works Loan Board 568,000,000 560,000,000 730,000,000 862,000,000 927,000,000 977,000,000 1,012,000,000
Market Bonds (LOBOs) 43,200,000 43,200,000 43,200,000 43,200,000 43,200,000 43,200,000 43,200,000
Project Borrowing 140,000 140,000 0 0 0 0 0
Special Loans 2,169,254 2,169,254 2,169,254 2,169,254 2,169,254 2,169,254 2,169,254
Temporary Loans/Other Borrowing 2,983,512 2,600,000 2,300,000 2,000,000 2,000,000 2,000,000 2,000,000
Other Long Term Liabilities (PPP/PFI) 127,194,346 121,231,770 115,269,194 109,306,618 103,344,043 98,926,869 94,509,695
Total Gross External Debt 743,687,112 729,341,024 892,938,448 1,018,675,872 1,077,713,297 1,123,296,123 1,153,878,949
Short Term Investments (252,035,371) (170,000,000) (90,000,000) (50,000,000) (50,000,000) (50,000,000) (50,000,000)
Long Term Investments 0 0 0 0 0 0 0
Total Net External Debt 491,651,741 559,341,024 802,938,448 968,675,872 1,027,713,297 1,073,296,123 1,103,878,949
Note:
Operational Boundary 744,000,000 729,000,000 893,000,000 1,019,000,000 1,078,000,000 1,123,000,000 1,154,000,000
Authorised Limit 1,200,000,000 1,200,000,000 1,200,000,000 1,200,000,000 1,200,000,000 1,200,000,000 1,200,000,000
The Operational Boundary and Authorised Limit are based on Gross External Debt.

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PERTH AND KINROSS COUNCIL
PRUDENTIAL INDICATORS - QUARTER ENDING 31 MARCH 2022
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 the end of the quarter.
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:
Fixed Rate Borrowing Maturity Structure Lower Limit Upper Limit Estimated
Under 12 months 0% 35% 1.08%
over 12 months and < 24 months 0% 35% 1.48% Expand the Over 10 year banding?
over 2 years and < 5 years 0% 50% 6.15% Should also include variable debt!!
over 5 years and < 10 years 0% 75% 6.96% Include para in report on interest rate exposure policy?
over 10 years 10% 95% 84.32%
The maurity profile for the Council's current long-term portfolio as at 31 March 2022, 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 8,000,000 5,000,000 23,000,000 27,500,000 5,000,000 0 40,500,000 459,000,000 0 568,000,000
LOBOs 0 0 0 0 0 13,000,000 25,200,000 5,000,000 0 43,200,000
Other 0 0 140,000 0 0 0 0 0 0 140,000
PPP/PFI Liability 0 5,962,576 22,304,901 23,875,338 70,009,414 5,042,117 0 0 0 127,194,346
Total 8,000,000 10,962,576 45,444,901 51,375,338 75,009,414 18,042,117 65,700,000 464,000,000 0 738,534,346
Percentage 1.08% 1.48% 6.15% 6.96% 10.16% 2.44% 8.90% 62.83% 0.00% 100.00% diff