Appendix IV

Perth and Kinross Council · 1 February 2023
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PERTH AND KINROSS COUNCIL
PRUDENTIAL INDICATORS - QUARTER ENDING 31 DECEMBER 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 6.46% 7.37% 8.40% 9.23% 9.47% 9.43%
Prudential Limit - HRA 30.00% 30.00% 30.00% 30.00% 30.00% 30.00%
Estimated Ratio of Financing Costs to Revenue 21.97% 23.10% 23.01% 23.23% 22.53% 22.53%
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-Dec-22 31-Mar-23 31-Mar-24 31-Mar-25 31-Mar-26 31-Mar-27 31-Mar-28
Net External Borrowing* 527,721,000 605,798,000 789,876,000 956,093,000 1,040,611,000 1,095,128,000 1,140,371,000
Gross External Borrowing* 735,394,000 730,798,000 834,876,000 976,093,000 1,060,611,000 1,115,128,000 1,160,371,000
Capital Financing Requirement 696,374,000 712,705,000 870,754,000 989,586,000 1,072,362,000 1,131,130,000 1,185,095,000
*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 147,462,000 197,172,000 135,622,000 93,393,000 71,911,000 66,164,000
Original Budget Estimate (including Budget Motion) 176,562,000 173,493,000 126,749,000 61,376,000 52,519,000 43,737,000
Movement in Estimated Capital Expenditure (29,100,000) 23,679,000 8,873,000 32,017,000 19,392,000 22,427,000
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 F&R Capital Monitoring Report No 3 on 1 February 2023.
HRA Programme 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28
Current estimate 18,990,000 16,457,000 13,858,000 18,669,000 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 1,691,000 474,000 (28,000) (1,416,000) 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 F&R Capital Monitoring Report No 3 on 1 February 2023.

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PERTH AND KINROSS COUNCIL
PRUDENTIAL INDICATORS - QUARTER ENDING 31 DECEMBER 2022
APPENDIX IV
4 Estimate of Capital Financing Requirement
The estimate (as at January 2023) 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 102,264,000 159,698,000 113,211,000 70,870,000 52,196,000 46,494,000
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 (38,000,000) 21,792,000 6,436,000 29,289,000 17,392,000 20,427,000
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 F&R Capital Monitoring Report No 3 on 1 February 2023.
HRA Programme 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28
Current Estimated Capital Financing Requirement 16,523,000 13,812,000 10,529,000 14,709,000 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 1,838,000 474,000 (28,000) (1,416,000) 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 F&R Capital Monitoring Report No 3 on 1 February 2023.
5 External Debt (Gross and Net)
As at Projected Projected Projected Projected Projected Projected
External Borrowing 31-Dec-22 31-Mar-23 31-Mar-24 31-Mar-25 31-Mar-26 31-Mar-27 31-Mar-28
Public Works Loan Board 563,000,000 560,000,000 670,000,000 817,000,000 907,000,000 967,000,000 1,017,000,000
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 2,131,508 2,131,508 2,131,508 2,131,508 2,131,508 2,131,508 2,131,508
Temporary Loans/Other Borrowing 4,129,401 4,000,000 3,700,000 3,400,000 3,400,000 3,400,000 3,400,000
Other Long Term Liabilities (PPP/PFI) 122,792,977 121,326,977 115,844,477 110,361,977 104,879,477 99,396,977 94,639,577
Total Gross External Debt 735,393,885 730,798,484 834,875,984 976,093,484 1,060,610,984 1,115,128,484 1,160,371,084
Short Term Investments (207,673,256) (125,000,000) (45,000,000) (20,000,000) (20,000,000) (20,000,000) (20,000,000)
Long Term Investments 0 0 0 0 0 0 0
Total Net External Debt 527,720,629 605,798,484 789,875,984 956,093,484 1,040,610,984 1,095,128,484 1,140,371,084
Note:
Operational Boundary 735,000,000 731,000,000 835,000,000 976,000,000 1,061,000,000 1,115,000,000 1,160,000,000
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 DECEMBER 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:
Borrowing Maturity Structure Lower Limit Upper Limit Estimated
Under 12 months 0% 35% 0.61%
over 12 months and < 24 months 0% 35% 1.44% Expand the Over 10 year banding?
over 2 years and < 5 years 0% 50% 6.08% Should also include variable debt!!
over 5 years and < 10 years 0% 75% 7.28% Include para in report on interest rate exposure policy?
over 10 years 10% 95% 84.58%
The maurity profile for the Council's current long-term portfolio as at 31st Decmber 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 3,000,000 5,000,000 23,000,000 27,500,000 5,000,000 0 40,500,000 459,000,000 0 563,000,000
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 1,466,000 5,482,500 21,204,900 25,611,400 69,028,177 0 0 0 0 122,792,977
Total 4,466,000 10,482,500 44,344,900 53,111,400 74,028,177 13,000,000 65,700,000 464,000,000 0 729,132,977
Percentage 0.61% 1.44% 6.08% 7.28% 10.15% 1.78% 9.01% 63.64% 0.00% 100.00% diff