Appendix IV – Monitoring of Prudential Indicators – Quarter ending 31 March 2023

Perth and Kinross Council · 26 April 2023
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PERTH AND KINROSS COUNCIL
PRUDENTIAL INDICATORS - QUARTER ENDING 31 MARCH 2023
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 6.44% 6.99% 8.27% 9.20% 9.46% 9.31%
Prudential Limit - HRA 30.00% 30.00% 30.00% 30.00% 30.00% 30.00%
Estimated Ratio of Financing Costs to Revenue 23.09% 23.06% 24.12% 24.28% 23.36% 23.79%
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
31-Mar-23 31-Mar-24 31-Mar-25 31-Mar-26 31-Mar-27 31-Mar-28
Net External Borrowing* 556,428,000 635,505,000 851,723,000 946,240,000 1,000,758,000 1,046,000,000
Gross External Borrowing* 730,078,000 769,155,000 980,373,000 1,074,890,000 1,129,408,000 1,174,650,000
Capital Financing Requirement 686,809,000 831,024,000 998,696,000 1,095,645,000 1,150,574,000 1,195,330,000
*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 116,091,000 199,696,000 196,624,000 111,024,000 67,408,000 48,605,000
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 (60,471,000) 26,203,000 69,875,000 49,648,000 14,889,000 4,868,000
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 4 on 26 April 2023.
HRA Programme 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28
Current estimate 18,180,000 20,422,000 13,853,000 15,519,000 19,044,000 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 881,000 4,439,000 (33,000) (4,566,000) 3,000,000 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 4 on 26 April 2023.

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PERTH AND KINROSS COUNCIL
PRUDENTIAL INDICATORS - QUARTER ENDING 31 MARCH 2023
APPENDIX IV
4 Estimate of Capital Financing Requirement
The estimate (as at April 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 71,510,000 150,387,000 176,527,000 92,516,000 46,776,000 25,377,000
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 (68,754,000) 12,481,000 69,752,000 50,935,000 11,972,000 (690,000)
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 4 on 26 April 2023.
HRA Programme 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28
Current Estimated Capital Financing Requirement 15,528,000 18,367,000 11,935,000 13,271,000 16,524,000 13,750,000
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 843,000 5,029,000 1,378,000 (2,854,000) 4,759,000 1,750,000
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 4 on 26 April 2023.
5 External Debt (Gross and Net)
As at Projected Projected Projected Projected Projected
External Borrowing 31-Mar-23 31-Mar-24 31-Mar-25 31-Mar-26 31-Mar-27 31-Mar-28
Public Works Loan Board 560,000,000 605,000,000 822,000,000 922,000,000 982,000,000 1,032,000,000
Market Bonds (LOBOs) 43,200,000 43,200,000 43,200,000 43,200,000 43,200,000 43,200,000
Project Borrowing 140,000 0 0 0 0 0
Special Loans 2,293,508 2,293,508 2,293,508 2,293,508 2,293,508 2,293,508
Temporary Loans/Other Borrowing 3,117,401 2,817,401 2,517,401 2,517,401 2,517,401 2,517,401
Other Long Term Liabilities (PPP/PFI) 121,326,977 115,844,477 110,361,977 104,879,477 99,396,977 94,639,577
Total Gross External Debt 730,077,885 769,155,385 980,372,885 1,074,890,385 1,129,407,885 1,174,650,485
Short Term Investments (173,650,000) (133,650,000) (128,650,000) (128,650,000) (128,650,000) (128,650,000)
Long Term Investments 0 0 0 0 0 0
Total Net External Debt 556,427,885 635,505,385 851,722,885 946,240,385 1,000,757,885 1,046,000,485
Note:
Operational Boundary 730,000,000 769,000,000 980,000,000 1,075,000,000 1,129,000,000 1,175,000,000
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
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 2023
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% 0.76%
over 12 months and < 24 months 0% 35% 1.45% Expand the Over 10 y
over 2 years and < 5 years 0% 50% 6.02% Should also include v
over 5 years and < 10 years 0% 75% 7.58% Include para in report
over 10 years 10% 95% 84.20%
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 0 5,000,000 23,000,000 27,500,000 5,000,000 0 40,500,000 459,000,000 0 560,000,000
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 5,482,500 5,482,500 20,479,800 27,435,800 62,446,377 0 0 0 0 121,326,977
Total 5,482,500 10,482,500 43,619,800 54,935,800 67,446,377 13,000,000 65,700,000 464,000,000 0 724,666,977
Percentage 0.76% 1.45% 6.02% 7.58% 9.31% 1.79% 9.07% 64.03% 0.00% 100.00% diff