Agenda Document Pack - Finance and Resources Committee - 26/04/2023
Perth and Kinross Council · 26 April 2023
Back to Finance and Resources Committee — 26 April 2023 and its agenda
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Securing the future… • Improving services • Enhancing quality of life • Making the best use of public resources Council Building 2 High Street Perth PH1 5PH 19/04/2023 A hybrid meeting of the Finance and Resources Committee will be held in the Council Chamber on Wednesday, 26 April 2023 at 14:00. If you have any queries please contact Committee 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 Bailie Alasdair Bailey Councillor Peter Barrett Councillor Andy Chan Councillor Dave Cuthbert Councillor Eric Drysdale Councillor John Duff Councillor Angus Forbes Provost Xander McDade Councillor Tom McEwan Depute Provost Andrew Parrott Councillor John Rebbeck Councillor Caroline Shiers Councillor Colin Stewart Page 1 of 102
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Finance and Resources Committee Wednesday, 26 April 2023 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 1 FEBRUARY 2023 FOR APPROVAL (copy herewith) 5 - 8 3(ii) MINUTE OF MEETING OF THE EXECUTIVE SUB-COMMITTEE OF THE FINANCE AND RESOURCES COMMITTEE OF 22 MARCH 2023 FOR APPROVAL (copy herewith) 9 - 10 4 OUTSTANDING BUSINESS STATEMENT (copy herewith 23/119) 11 - 12 5 TRANSFORMATION AND CHANGE Presentation by Executive Lead - Strategic Planning and Transformation 6 REVENUE BUDGET 2022/23 - UPDATE NO. 4 Report by Head of Finance (copy herewith 23/120) 13 - 48 7 COMPOSITE CAPITAL BUDGET 2022/28 & HOUSING INVESTMENT PROGRAMME 2022/27 - MONITORING REPORT NO. 4 Report by Head of Finance (copy herewith 23/121) 49 - 82 8 TREASURY ACTIVITY AND COMPLIANCE REPORT 2022/23 QUARTER 4 Report by Head of Finance (copy herewith 23/122) 83 - 102 Page 3 of 102
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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 1 February 2023 at 2.00pm. Present: Councillors S Donaldson and G Laing, Bailies C Ahern and A Bailey and Councillors P Barrett, B Brawn (substituting for A Chan), D Cuthbert, A Forbes, D Illingworth (substituting for J Duff), I Massie (substituting for E Drysdale), Provost McDade, T McEwen, J Rebbeck, C Shiers, C Stewart and Depute Provost A Parrott. In Attendance: T Glen, Chief Executive; S Devlin, Executive Director (Education and Children’s Services); B Renton, Executive Director (Communities); C Mailer (Chief Executive’s Service); J Pepper (Health and Social Care Partnership); G Boland (Education and Children’s Services); S Best, L Brady, M Butterworth, B Cargill, A Clegg, F Croft, S Coyle, S D’All, P Dickson, C France, K Fraser, L Haxton, S Nicol, F Robertson, N Taylor (all Communities); K Donaldson, L Simpson, S MacKenzie, S Walker, K Molley, D Adams, J Beveridge, L Harris, J Jennings, P Johnstone, A Taylor, M Pasternak and A Brown (all Corporate and Democratic Services). Apologies: Councillors A Chan, E Drysdale and J Duff. Councillor S Donaldson, Convener, Presiding. The Convener led discussion on items 1-7, 9 and 10 and Vice-Convener on item 8. 1. WELCOME AND APOLOGIES The Convener welcomed all those present to the meeting and apologies were noted above. 2. DECLARATIONS OF INTEREST In terms of the Councillors’ Code of Conduct: (i) Bailie A Bailey declared a financial interest in item 9. (ii) Bailie A Bailey and Councillor C Stewart declared a non-financial interest in item 10. 3. MINUTE OF PREVIOUS MEETINGS The minute of meeting of the Finance and Resources Committee of 30 November 2022 was submitted and approved. 4. OUTSTANDING BUSINESS STATEMENT Resolved: (i) The contents of the Outstanding Business Statement, be noted. (ii) The removal of all completed actions from the Outstanding Business Statement, be agreed. 3(i) Page 5 of 102
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5. REVENUE BUDGET 2022/23 – UPDATE NO.3 There was submitted a report by Head of Finance (23/30) providing an update on progress with the 2022/23 General Fund Revenue Budget based upon the November 2022 ledger, updated for any subsequent known material movements and the projected financial position of the Housing Revenue Account. Resolved: (i) The contents of Report 23/30 be noted. (ii) The projected outturn for General Fund Services, as set out in Section 5 of Report 23/30 and Appendices 1 and 2 to this report, be noted. (iii) The projected outturn for Corporate Budgets, as set out in Section 6 of Report 23/30, be noted. (iv) The Health & Social Care projected outturn, as summarised in Section 6 of Report 23/30 and Appendix 3 to this report, be noted. (v) The projected outturn for the Housing Revenue Account, as summarised in Section 7 of Report 23/30 and Appendix 4 to this report, be noted. 6. COMPOSITE CAPITAL BUDGET 2022/28 & HOUSING INVESTMENT PROGRAMME 2022/27 – MONITORING REPORT No.3 There was submitted a report by the Head of Finance (23/31) providing a summary position to date for the 6-year Composite (General Fund) Capital Budget for 2022/23 to 2027/28 and the 5-year Housing Investment Programme 2022/23 to 2026/27 and seeking approval for adjustments to the programmes. Amendment (Councillors A Forbes and C Shiers) The Leader of the Council is instructed to write to the Scottish Government asking for a detailed schedule of funding to renew all play areas in Perth and Kinross and schedule of dates for bringing forward the funding to allow officers to plan the investment and ensure it is allocated accordingly. After further discussions, Councillors A Forbes and C Shiers withdrew their amendment. Amendment (Councillor C Stewart) Instruct Officers to pause making any further commitments until the Capital Budget on 1 March 2023. THERE WAS A 15 MINUTE RECESS AND THE MEETING RECONVENED AT 15.30. Councillor C Stewart withdrew his amendment. Resolved: (i) The content of report 23/31, be noted (ii) The proposed adjustments to the six-year Composite Capital Budget 2022/23 to 2027/28, as set out in Sections 3 and 4 of Report 23/31 and summarised in Appendix I and II to the report, be approved. Page 6 of 102
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(iii) The proposed adjustments to the Housing Investment Programme Budget 2022/23 to 2026/27, as set out in Section 5 of Report 23/31 and summarised in Appendix III to the report, be approved. (iv) The update reports on the delivery of major Capital projects, attached at Appendix IV of Report 23/31, be noted. 7. TREASURY ACTIVITY AND COMPLIANCE REPORT 2022/23 QUARTER 3 There was submitted a report by the Head of Finance (23/32) updating the Committee on Treasury Activity for the quarter ending 31 December 2022, and to report on compliance with the Council’s Treasury Management Policy Statement (TMPS); Investment Strategy and Prudential Indicators. Resolved: The contents of Report 23/32, be noted. 8. FRAMEWORK FOR MANAGING WORKFORCE CHANGE There was submitted a report by the Corporate Human Resources Manager (23/33) seeking approval of changes to the Framework for Managing Workforce Changes. Amendment (Bailie A Bailey) Do not accept the recommendations in Report 23/33 and maintain the status quo. In line with Standing Order 18.3, as no seconder to the amendment was forthcoming, the amendment subsequently fell. Bailie Bailey asked for his dissent to the decision taken be recorded. Resolved: The revised provisions within the Framework for Managing Workforce Change be approved. 9. DIGITAL PERTH AND KINROSS: DIGITAL STRATEGY 2023-27 There was submitted a report by the Head of Corporate IT And Revenues (Chief Digital Officer) (23/34) introducing the refreshed Digital Strategy for the period 2023-2027. Resolved: (i) The Digital Strategy 2023-2027 be approved. (ii) Councillor Jack Welsh be nominated as the Council’s Digital Champion. 10. COMMUNITY INVESTMENT FUND 2022/23 There was submitted a report by the Head of Culture and Community Services (23/35) informing of the funding commitments made for the 2022/23 Community Investment Fund (CIF) across the 10 ward panel areas (the 3 Perth City wards are combined into 1 for the purposes of CIF). Page 7 of 102
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Resolved: (i) The funding decisions taken by Ward Panels for 2022/23 CIF be noted. (ii) The carry forward of £68,000 for disbursal to community grassroots projects in 2023/24, for use in the wards there the underspends have arisen, be approved. Page 8 of 102
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EXECUTIVE SUB-COMMITTEE OF FINANCE AND RESOURCES COMMITTEE Minute of hybrid meeting of the Executive Sub Committee of the Finance and Resources Committee held in the Council Chamber, 2 Hight Street, Perth on Wednesday 22 March 2023 at 3.00pm. Present: Councillors S Donaldson, G Laing, P Barrett, A Chan (substituting for Councillor C Shiers), E Drysdale and C Stewart (substituting for Councillor D Cuthbert). In Attendance: T Glen, Chief Executive; B Renton, Executive Director (Communities); C Mailer (Chief Executive’s Service); A Cook and G Boland (Education and Children’s Services); L Simpson, S MacKenzie, S Walker, K Molley, A Brown and M Pasternak (all Corporate and Democratic Services). Also in Attendance: K McNamara and D Kidd, Tayside Contracts Apologies: Councillors J Duff, D Cuthbert, and C Shiers. Councillor S Donaldson, Convener, Presiding. 1. WELCOME AND APOLOGIES The Convener welcomed all those present to the meeting and apologies were noted above. 2. DECLARATIONS OF INTEREST There were no declarations of Interest made in terms of the Councillors’ Code of Conduct. 3. REVENUE BUDGET 2022/23 – TAYSIDE CONTRACTS There was submitted a report by Head of Finance (23/98) (1) providing the Executive Sub-Committee with an update on the financial projections for Tayside Contracts; and (2) seeking authority for the Head of Finance to apply up to £1.1 million from unearmarked Reserves to meet the Council’s forecast obligations to Tayside Contracts in 2022/23. Resolved: (i) The contents of Report 23/98 and the latest financial projection for Tayside Contracts, be noted. (ii) The Head of Finance be authorised to apply up to £1.1 million from unearmarked Reserves to meet the Council’s forecast obligations to Tayside Contracts in 2022/23 as set out in sections 5 and 6 of Report 23/98. (iii) The Convener be requested to write to Tayside Contracts suggesting that they set up a Performance/Scrutiny Sub-Committee to enable more regular in- depth monitoring of performance. 3(ii) Page 9 of 102
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FINANCE AND RESOURCES COMMITTEE OUTSTANDING BUSINESS STATEMENT (OBS) (Report No. 23/119) 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 10. 30 November 2022 Revenue Budget 2022/23 – Update No.2 An update to be provided to members regarding underspend in the Health and Social Care Partnership. Verbal Update was given by J Pepper at the previous Finance and Resources Committee on 1 February 2023. COMPLETED Jacqueline Pepper 1 February 2023 1 February 2023 13. 1 February 2023 Revenue Budget 2022/23 – Update No. 3 An update to be provided to members on graduate resignations in Early Learning and Childcare. Email response issued to all members. COMPLETED Sheena Devlin 26 April 2023 26 April 2023 14. 1 February 2023 Digital Perth and Kinross: Digital Strategy 2023-27 Enquire with the developer on getting a second master microphone for the running of Committee Meetings. Elected Member Briefing Note was issued. COMPLETED Alan Taylor 26 April 2023 26 April 2023 4 Page 11 of 102
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PERTH & KINROSS COUNCIL FINANCE & RESOURCES COMMITTEE 26 APRIL 2023 Revenue Budget 2022/23 – Update No.4 Report by Head of Finance (Report No. 23/120) 1. PURPOSE 1.1 This report provides an update on progress with the 2022/23 General Fund Revenue Budget based upon the January 2023 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 2022/23 General Fund Management Budget is £860,000 (see Appendix 1). 1.3 This report also provides an updated on the 2023/24 General Fund Management Budget (see Appendix 7) 2. RECOMMENDATIONS The Committee is requested to: A. note the contents of the report. B. note the projected outturn for General Fund Services set out in Section 5 and Appendix 1 and 2. C. note the projected outturn for Corporate Budgets set out in Section 6. D. note the Health & Social Care projected outturn, which is summarised in Section 6 and Appendix 3. E. note the projected outturn for the Housing Revenue Account which is summarised in Section 7 and Appendix 4. F. approve the adjustments to the 2022/23 Management Revenue Budget detailed in Appendices 1, 2, 4, 5 and 6 and Section 8, 9, and 10. G. approve the adjustments to the 2023/24 Management Revenue Budget detailed in Section 11 and Appendix 7. 3. STRUCTURE Section 4 Background Section 5 Revenue Monitoring – Service Budgets 6 Page 13 of 102
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Section 6 Revenue Monitoring – Corporate Budgets Section 7 Revenue Monitoring – Other Revenue Budgets Section 8 2022/23 Additional Funding Section 9 2022/23 Virements Section 10 2022/23 Movements in Reserves Section 11 Adjustments to 2023/24 Revenue Budget 4. BACKGROUND 4.1 This report updates the Committee on progress with the 2022/23 Revenue Budget. Appendix 1 to this report summarises the current projected year end (outturn) position for each Service based upon the January 2023 ledger, updated for any subsequent known material movements. 4.2 The budget total reflected in Column 1 of Appendix 1 to this report is that approved by the Council in setting the 2022/23 Final Revenue Budget on 23 February 2022 (Report No. 22/35 refers). In addition, adjustments approved by Council on 25 May, 17 August and 28 September 2022 (Report No. 22/252 refers), by the Strategic Policy & Resources Committee on 20 April (Report No. 22/87), by the Finance & Resources Committee on 7 September & 30 November 2022 and 1 February 2023 (Report Nos. 22/208, 22/294 and 23/30 refer) and the Executive Sub-Committee of the Finance & Resources Committee on 22 March 2023 (Report No. 23/98 refers) are reflected in Appendix 1 (Column 2). 4.3 On 22 June 2022, the Council approved the Financial Strategy which set out a number of principles that will assist Medium Term Financial Planning and development of Revenue and Capital Budgets (Report No. 22/141 refers). 5. REVENUE MONITORING – SERVICE BUDGETS 5.1 Details of variances against Service budgets are shown in Appendix 2 to this report with the most significant variances summarised below. The total net projected under spend on Service budgets, as set out in Appendix 1 to this report, is £1.291 million which represents 0.4% of total net Service expenditure. 5.2 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. 5.3 There remains a risk that the Council continues to experience increases in costs over the short to medium term that are higher than budgeted inflation levels. This is already being seen in the cost of the materials required by property and housing maintenance teams. Going forward, this may have an impact on projected outturns and future years’ budgets. Education & Children’s Services 5.1 The projected outturn for Education & Children’s Services excluding Devolved School Management (DSM) and the Pupil Equity Fund (PEF) is currently Page 14 of 102
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anticipated to be £813,000 less than budget – a movement of £335,000 from the position last reported to Committee. The movements are summarised as follows. 5.2 Within non devolved Education Services there is an increase in the projected under spend of £164,000. These movements are made up of additional staff slippage due to continued proactive workforce management (£126,000) and other net under spends (£38,000). 5.3 The updated financial consequences of the strikes that took place in January, February and March 2023 amounted to an estimated £1.289 million in unpaid salaries. Consistent with the position agreed by the Committee on 1 February 2023, there is a proposal later in this report to transfer this amount to Reserves. The 2023/24 Revenue Budget, approved by Council on 1 March applies this funding, in its entirety, to supporting the educational needs of children and young people. 5.4 In Services for Children, Young People & Families there is a reduction in the projected over spend of £78,000. The main factor contributing to this movement is an increase in the projected level of staff slippage (£76,000) and other net under spends (£2,000). 5.5 In Business & Resource Services there is an increase in the projected under spend of £107,000 due to increased staff slippage and reduced travel costs. 5.6 In Catering Services there is a reduction in the projected under spend of £14,000 due to updated meal projections. 5.7 There is a planned under spend of £807,000 on Devolved School Management budgets (DSM) due primarily to staff slippage and recharges, which represents 0.7% of the overall DSM budget. It is anticipated that in line with the approved DSM scheme, the eventual over and under spends will be carried forward into 2023/24. The budgets for the Devolved School Management scheme are allocated by financial year (April – March), whereas expenditure is incurred by academic year (August – June). 5.8 At this stage of the academic year, expenditure met from the Pupil Equity Fund (PEF) is projected to be £300,000 less than the allocation from the Scottish Government of £1.874 million. Schools are being instructed to use this year’s PEF by 31 March 2023. It is anticipated that the projected under spend on teacher and support costs will be carried forward to 2023/24 to meet commitments. The budgets for the Pupil Equity Fund scheme are allocated by financial year, whereas expenditure is incurred by academic year. Communities 5.9 The projected outturn for Communities is currently anticipated to be £1.248 million less than budget – an increase of £985,000 from the previously reported position. The movements are summarised as follows. Page 15 of 102
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5.10 In Environment & Consumer Services there is a net reduction in the projected over spend of £650,000. The projected over spend on fuel has reduced (£100,000), there are projected savings on waste disposal contracts (£150,000), additional income from Bereavement Services (£80,000) and savings on loan charges (£20,000). In addition, the projected over spend on winter maintenance has reduced (£450,000). These are partially offset by an increase in the projected over spend on vehicle materials and repairs (£150,000). 5.11 In Planning & Development there is a net increase in the projected under spend of £405,000. The main reason for this movement relates to additional income from planning and building warrant fees (£350,000). In addition, there are further net under spends across the remainder of the division (£55,000). 5.12 Within Business & Resources there is a net reduction in the projected under spend of £60,000 in IT licensing and support costs. 5.13 In Housing there is an increase in the net projected over spend of £10,000 due to updated security costs. Corporate & Democratic Services 5.14 The projected outturn for Corporate & Democratic Services is currently anticipated to be £850,000 more than budget – a reduction of £59,000 from the previously reported projected over spend. The main movements are summarised as follows. 5.15 In Property the projected over spend on energy has reduced by £162,000 based on the latest data which is partially offset by an increase of in maintenance costs of £60,000. 5.16 Across the remainder of the Service there is an increase in the net projected under spend of £43,000. Chief Executive Service 5.17 The projected outturn for the Chief Executive’s Service is currently anticipated to be £80,000 less than budget due to staff slippage and additional income. 6. REVENUE MONITORING – CORPORATE BUDGETS Health & Social care 6.1 Across the Perth and Kinross Health & Social Care Partnership there is a projected under spend of £2.723 million which is set out in Appendix 3. This projected under spend was considered in detail at the meeting of the Perth & Kinross Integration Joint Board Audit & Performance Committee on 13 March 2023. Within the overall projected under spend, £3.1 million relates to social care. Page 16 of 102
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6.2 In relation to non-devolved functions there is currently a projected under spend of £299,000 which is reflected in Appendix 1. This is made up of staff slippage as well as a rephasing of two approved transformation projects – see paragraph 10.12. Council Tax Income 6.3 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. 6.4 Monitoring of Council Tax collection levels is carried out monthly. The following graph sets out collection performance to 31 March 2023 together with prior year comparative figures for the previous five financial years. 6.5 Between 2017/18 and 2021/22, the average collection figure to 31 March was 96.93%. The actual collection figure to 31 March 2023 was 97.95% which is an increase of 1.02% compared to the historical average and a 0.78% increase on the comparable position in 2022. Page 17 of 102
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6.6 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. 6.7 Given the 2022/23 collection rate that is set out at paragraph 6.5 above, as well as collection of historic debt, the latest projected outturn indicates that Council Tax income will be £200,000 more than budget in the current year. Council Tax Reduction Scheme 6.8 Council Tax Reduction is a statutory function and encouraging take up is a key responsibility for the Council, particularly when households are facing significant pressures on the cost of living. 6.9 The Council is currently supporting approximately 8,300 households across Perth and Kinross with the Council Tax Reduction Scheme with an average award of £16 per week. This results in a projected over spend on the Council Tax Reduction Scheme of approximately £680,000. Non-Domestic Rates 6.10 The actual collection rate to 31 March 2023 was 97.91%, compared to 94.29% for the same period in 2021/22. Tayside Contracts 6.11 On 1 February 2023, the Finance & Resources Committee were updated on the financial challenges facing Tayside Contracts in 2022/23 (Report No. 23/30 refers). This update also advised that, should additional financial support be required, an Executive Sub-Committee of the Finance & Page 18 of 102
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Resources Committee would be called to authorise funding to provide additional support. 6.12 The Executive Sub-Committee of the Finance & Resources Committee met on 22 March 2023 to receive the latest update on Tayside Contracts (Report No. 23/98 refers). As part of this update, approval was granted to apply up to £1.1 million of unearmarked Reserves to meet the Council’s share (34%) of the projected losses of Tayside Contract’s Facilities Division. This is now reflected in Appendix 1 to this revenue monitoring report. 7. REVENUE MONITORING – OTHER REVENUE BUDGETS Housing Revenue Account 7.1 The Housing Revenue Account is currently projected to break even in the current financial year. The main movements from the last update are summarised below and set out in Appendix 4. 7.2 Across the Housing Revenue Account, the projected outturn has increased by a net £358,000. The main movements arise from a reduction in staff slippage due to the back dated pay award and additional costs due to burst pipes which is partially offset by additional income. 7.3 As a result of the variances identified above Capital from Current Revenue will be reduced by £358,000. Impact on Arm’s Length External Organisations (ALEOs) 7.4 The Council continues to work closely with its three Arm’s Length External Organisations (ALEOs) – Live Active Leisure (LAL), Horsecross Arts (Hx Arts) and Culture Perth & Kinross (CPK) who make an important contribution to the wellbeing of both citizens and visitors to Perth and Kinross. 7.5 As sole member and core funder of all three ALEOS, the Council has managed financial risk by maintaining normal monthly service level agreement payments to all three organisations to mitigate the impact of Covid-19. In addition, officers continue to work closely with all three ALEOs to understand the impact of Covid-19 more fully on service delivery. 7.6 To date, no significant financial issues have been identified relating to Culture Perth and Kinross or Horsecross Arts Ltd. 7.7 Live Active Leisure is currently projecting a deficit for 2022/23 but this will be funded from its own Reserves and therefore has no financial impact on the Council. 7.8 The long-term impact of Covid-19 on the Council’s ALEOs across future financial years will be kept under review with updates provided to future meetings of the Finance & Resources Committee. Page 19 of 102
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8. 2022/23 ADDITIONAL FUNDING 8.1 Since the 2022/23 Revenue Budget was updated on 1 February 2023 (Report No. 23/30 refers), the Council has been advised of additional funding for the current financial year from several sources. To ensure that the 2022/23 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: • Teachers Pay Award: £866,000 (Education & Children’s Services) • Scottish Child Payment Bridging Payments: £71,000 (Corporate & Democratic Services (CDS)) • Self-Isolation Assistance Service - £19,000 (CDS) • Project Unicorn: £5,000 (Communities) 8.2 The Scottish Government has advised that the increase in Revenue Support Grant identified above of £961,000 will be made through a redetermination of the Council’s Revenue Support Grant. It is therefore necessary to adjust budgets for Education & Children’s Services, Communities, Corporate & Democratic Services and Revenue Support Grant. 8.3 ACTION: The Council is asked to approve the adjustments set out at paragraph 8.2 which is reflected in Appendix 1 (Column 3) to this report. Other Funding 8.4 Other funding amounting to £1.883 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. 8.5 ACTION: The Committee is asked to note the receipt of £1.883 million of additional resources, with this funding being reflected within Communities and Corporate & Democratic Services as additional grant income. The current projected outturn assumes that all these additional resources will be fully expended in 2022/23 or will be carried forward under the terms of the grant award. 9. 2022/23 VIREMENTS Contribution to/from Capital Fund 9.1 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. 9.2 The latest monitoring indicates a reduction in the projected outturn for capital financing costs (loan charges) of £15,000 based on the latest treasury Page 20 of 102
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management activity and a reduction of £79,000 in income from interest on revenue balances. This will result in a reduced Contribution to the Capital Fund of £64,000 in the current financial year. 9.3 ACTION: The Committee is requested to approve the virement of £15,000 from the Capital Financing Costs (Loan Charges) Budget and £79,000 from 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 9.4 To ensure that the 2022/23 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. • Communities to Capital Grant - £30,000 – to reflect a rephasing of expenditure on Tactran capital projects - this funding will be reinstated in 2023/24. • Contribution to 2022/23 Pay Award to Education & Children’s Services - £3.056 million – to reflect the additional cost of the pay award to teachers that was accepted in early March 2023. 10. 2022/23 MOVEMENTS IN RESERVES Updated Financial Implications of Strike Action 10.1 The updated financial implications of the strikes that took place in January and February 2023 is currently estimated at £1.289 million. As advised at paragraph 5.6, the 2023/24 Revenue Budget that was approved on 1 March 2023 applied all these resources towards supporting the educational needs of children and young people in future years. 10.2 ACTION: The Committee is asked to approve the transfer of £1.289 million from Education & Children’s Services to the earmarked Reserve for Children and Young People’s Residential Care. This adjustment is reflected in Appendix 1 (Column 5) to this report. Works Maintenance 10.3 The Council has previously earmarked Reserves for maintenance works around the River Ericht. Approval is sought to transfer £200,000 from the projected under spend in Communities in 2022/23 to carry out further remedial works. 10.4 ACTION: The Committee is asked to approve the transfer of £200,000 from Communities to the Works Maintenance earmarked Reserve. This adjustment is reflected in Appendix 1 (Column 5) to this report. Page 21 of 102
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Council Approved Expenditure 10.5 In setting the 2022/23 Revenue Budget in February 2022, the Council approved expenditure to fund several initiatives. For a variety of reasons including consultation and capacity issues, there has been slippage in the delivery of these projects that may result in the expenditure not being incurred in the current financial year. Projects totalling £60,000 are set out at Appendix 6. 10.6 Should the Committee confirm that that the projects remain a priority for the Council then the balances set out in Appendix 6 will be transferred to an earmarked Reserve to ensure that the funding is in place to ensure delivery. The final outturn for individual projects may change before the end of the financial year. Therefore, by agreeing the projects within Appendix 6, the Committee is confirming that the initiative remains a priority and that the final under spend will be earmarked within Reserves. 10.7 Should any of the projects no longer be a priority, the projected underspend would be available to support the financial management of the Council in both current and future financial years. 10.8 ACTION: the Committee is asked to confirm that the projects listed in Appendix 6 remain a priority and that the final under spends, currently projected at £60,000 are transferred to an earmarked Reserve to ensure delivery. Property Maintenance 10.9 The Council’s unearmarked Reserves includes provision for Property Maintenance works on cemeteries. Approval is sought to draw down £34,000 to fund activity in 2022/23. 10.10 ACTION: the Committee is asked to transfer £34,000 from the Property Maintenance earmarked Reserve to Corporate & Democratic Services to fund works on cemeteries. This adjustment is reflected in Appendix 1 (Column 5) to the report. Transformation Projects 10.11 Due to a rephasing of expenditure there is a requirement to adjust budgets for the following approved projects as follows: • Perth and Kinross Offer - £60,000 from the Chief Executive’s Service • Modernising Performance - £15,000 from the Chief Executive’s Service • Low Carbon Initiatives - £49,000 from Communities • Care at Home Mobile Technology - £46,000 from Health & Social Care • Mental Health Officer Training - £83,000 from Health & Social Care 10.12 ACTION: The Committee is asked to approve the transfers to the Transformation and Workforce Management earmarked Reserve set out at Page 22 of 102
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paragraph 10.11 above. These adjustments are reflected in Appendix 1 (Column 5) to the report. Financial Insecurity / Tackling Poverty 10.13 In approving the earmarked Reserves on 1 March 2023, the Council was advised of a projected under spend on financial insecurity projects of £650,000 (Report No 23/72 refers). Furthermore, there is now a projected under spend of £30,000 on the funding approved by Council on 28 September 2022 in relation to Tackling Poverty and the Cost of Living (Report No. 22/252 refers). Approval is sought to transfer these under spends to the Financial Insecurity earmarked Reserve to be utilised in 2023/24. 10.14 ACTION: The Committee is asked to approve the transfer of £680,000 from Corporate & Democratic Services and the Chief Executive’s Service to the Financial Insecurity earmarked Reserve. These adjustments are reflected in Appendix 1 (Column 5) to the report. Culture 10.15 Approval is sought to draw down £23,000 from the earmarked Reserve to support Culture to meet the costs of the Review of Libraries 10.16 ACTION: The Committee is asked to approve the transfer of £23,000 from the earmarked reserve for Culture to Communities. This adjustment is reflected in Appendix 1 (Column 5) to the report. Revenue Grants 10.17 The Council received £50,000 to support trauma informed practice in 2022/23. Approval is sought to transfer this to the Health & Social Care Partnership to take this forward. 10.18 ACTION: The Committee is asked to approve the transfer of £50,000 from the earmarked reserve for Revenue Grants to Health & Social Care. This adjustment is reflected in Appendix 1 (Column 5) to the report. Council Tax Second Homes 10.19 Approval is sought to apply £104,000 from the Council Tax Second Homes earmarked Reserve to fund activity in 2022/23. 10.20 ACTION: The Committee is asked to approve the transfer of £104,000 from the Council Tax Second Homes earmarked reserve to Communities. This adjustment is reflected in Appendix 1 (Column 5) to the report. Community Investment Fund 10.21 On 1 February 2023, the Finance & Resources Committee were advised of the outcome of commitments made by individual ward panel areas (Report No. 23/35 refers). This resulted in a projected under spend of £51,000 in Page 23 of 102
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2022/23. Approval is sought to transfer this under spend to the Community Investment Fund earmarked Reserve for use in 2023/24. 10.22 ACTION: The Committee is asked to approve the transfer of £51,000 from Communities to the Community Investment Fund earmarked Reserve. This adjustment is reflected in Appendix 1 (Column 5) to the report. Local Action Partnerships 10.23 Approval is sought to drawdown £17,000 from the Local Action Partnerships earmarked Reserve to fund activity in 2022/23. 10.24 ACTION: The Committee is asked to approve the transfer of £17,000 from the Local Action Partnerships earmarked Reserve to Communities. This adjustment is reflected in Appendix 1 (Column 5) to the report. Climate Change 10.25 Due to slippage and a rephasing of activity there is a projected under spend of £140,000 on climate change related budgets. Consistent with the Councils commitment to climate change, approval is sought to create an earmarked Reserve for climate change to allow for the movement of resources between financial years and that the final under spend in 2022/23 (currently projected at £140,000) is transferred to this earmarked Reserve. 10.26 ACTION: The Committee is asked to approve the creation of an earmarked Reserve for Climate Change and that the final under spend in 2022/23 (currently projected at £140,000) is transferred to this earmarked Reserve. This adjustment is reflected in Appendix 1 (Column 5) to the report. Ventilation Measures 10.27 The Council has previously allocated resources to enhance ventilation measures, particularly around the installation of CO2 monitors across the learning estate. Approval is sought to transfer £90,000 of this funding to earmarked Reserves to allow the work to be completed in 2023/24. 10.28 ACTION: The Committee is asked to approve the transfer of £90,000 from Corporate & Democratic Services to earmarked Reserves to complete the installation of CO2 monitors. This adjustment is reflected in Appendix 1 (Column 5) to the report. 11. ADJUSTMENTS TO 2023/24 REVENUE BUDGET 2023/24 Additional Funding 11.1 Since the 2023/24 Revenue Budget was approved on 1 March 2023 (Report No. 23/72 refers), the Council has been advised of additional funding in 2023/24 from the Scottish Government as follows. To ensure that the 2023/24 Management Budgets continue to reflect the operational Page 24 of 102
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requirements of the Council, several adjustments are required, which are summarised below and included in Appendix 7. Revenue Support Grant • Living Wage: £3.035 million (Health & Social Care - £2.905 million, Communities - £130,000) • Discretionary Housing Payment: £822,000 (Corporate & Democratic Services) • Reduction in Funding: £135,000 Ring-Fenced Grant • Early Learning Centre Reduction: reduction of £4,000 (Education & Children’s Services) 11.2 The Scottish Government has advised that the adjustment in funding identified at 11.1 will be made through a redetermination of the Council’s Revenue Support Grant. It is therefore necessary to adjust the budgets for Education & Children’s Services, Communities, Corporate & Democratic Services, Health & Social Care, Revenue Support Grant and Ring-Fenced Grant. 11.3 ACTION: The Committee is asked to approve the adjustments set out at paragraph 11.2 above. These adjustments are reflected in Appendix 7 (Column 2) to this report. 2023/24 Service Virements 11.4 To ensure that the 2023/24 Management Revenue Budget continues to reflect current Service needs and operational requirements the following virements between budgets are required. • Capital Grant to Communities (£30,000) to reflect a rephasing of expenditure on Tactran capital projects – this is brought forward from 2022/23 2023/24 Movements in Reserves Transformation Projects 11.5 Due to the rephasing of expenditure identified in paragraph 10.11 above, approval is sought to draw down this funding to take forward the following approved projects in 2023/24: • Perth and Kinross Offer - £60,000 to the Chief Executive’s Service • Modernising Performance - £15,000 to the Chief Executive’s Service • Low Carbon Initiatives - £49,000 to Communities • Care at Home Mobile Technology - £46,000 to Health & Social Care • Mental Health Officer Training - £83,000 to Health & Social Care Page 25 of 102
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11.6 ACTION: The Committee is asked to approve the transfers from the Transformation and Workforce Management earmarked Reserve listed in 11.7 above. These adjustments are reflected in Appendix 6 (Column 4) to this report. Council Approved Expenditure 11.7 Approval is sought to apply funding to the Council approved projects identified at paragraph 10.8 and Appendix 6 to 2023/24 to ensure that they are delivered. 11.8 ACTION: The Committee is asked to approve the adjustments set out at paragraph 11.9 above and Appendix 6 in 2023/24. These adjustments are reflected in Appendix 7 (Column 4) to this report. Revenue Grants 11.9 The Council received £50,000 to support trauma informed practice in 2023/24. Approval is sought to transfer this to the Health & Social Care Partnership to take this forward. 11.10 ACTION: The Committee is asked to approve the transfer of £50,000 from the earmarked reserve for Revenue Grants to Health & Social Care. This adjustment is reflected in Appendix 7 (Column 4) to the report. Community Investment Fund 11.11 Approval is sought to apply the 2022/23 projected under spend of £51,000 on the Community Investment Fund identified in paragraph 10.22 to 2023/24. 11.12 ACTION: The Committee is asked to approve the transfer of £51,000 from the Community Investment Fund earmarked Reserve to Communities. This adjustment is reflected in Appendix 7 (Column 4) to the report. Ventilation Measures 11.13 Approval is sought to apply £90,000 from earmarked Reserves to complete the installation of CO2 monitors across the learning estate – see paragraph 10.29. 11.14 ACTION: The Committee is asked to approve the transfer of £90,000 from Corporate & Democratic Services to earmarked Reserves to complete the installation of CO2 monitors. This adjustment is reflected in Appendix 7 (Column 4) to the report. Additional Support for Young People 11.15 As advised earlier in this report, the updated financial implications of the strikes that took place in 2022/23 was £1.289 million. This was £250,000 more than the amount used in setting the 2023/24 Revenue Budget on 1 Page 26 of 102
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March 2023. On the basis that the proposal at paragraph 10.6 is agreed, this funding will sit in earmarked Reserves on 31 March 2023. 11.16 Consistent with the position agreed by the Committee on 1 February 2023, it is proposed that this additional funding of £250,000 is applied to supporting the educational needs of children and young people. 11.17 This investment will support the development of the workforce by providing professional learning and specialist qualifications for teaching and support staff in intensive support provisions. Specifically for teachers of children and young people with hearing and visual impairment across all sectors, for outreach teachers who support children with emotional and behavioural needs and additional support needs in our primary schools, and for principal teachers (support for learning) in secondary schools. It will all also assist with the provision of resources for children and young people with complex needs or a disability across the Council. 11.18 ACTION: The Committee is asked to approve the transfer of £250,000 from earmarked Reserves to Education & Children’s Services to provide additional support for young people. This adjustment is reflected in Appendix 7 (Column 4) to the report. 12. CONCLUSION 12.1 Currently, a projected under spend of £860,000 has been identified in the current financial year. 12.2 The financial position of the Council and its partners and ALEOs remains challenging and regular updates will be provided to the Council and the Finance & Resources Committee as the position develops. Author(s) Name Designation Contact Details Scott Walker Chief Accountant CHXFinance@pkc.gov.uk APPROVED Name Designation Date Stewart Mackenzie Head of Finance 31 March 2023 Karen Donaldson Chief Operating Officer 3 April 2023 Page 27 of 102
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ANNEX 1. IMPLICATIONS, ASSESSMENTS, CONSULTATION AND COMMUNICATION Strategic Implications Yes / None Community Plan / Single Outcome Agreement None Corporate Plan Yes Resource Implications Financial Yes Workforce Yes Asset Management (land, property, IST) Yes Assessments Equality Impact Assessment Yes Strategic Environmental Assessment Yes Sustainability (community, economic, environmental) Yes Legal and Governance None Risk None Consultation Internal Yes External None Communication Communications Plan None 1. Strategic Implications Corporate Plan 1.1 The Council’s Corporate Plan 2022 – 2027 lays out seven outcome focussed strategic objectives which provide clear strategic direction, inform decisions at a corporate and service level and shape resources allocation. They are as follows: • Tackling poverty • Tackling climate change and supporting sustainable places • Growing a sustainable and inclusive local economy • Enabling our children and young people to achieve their full potential • Protecting and caring for our most vulnerable people • Supporting and promoting physical and mental wellbeing • Placing communities at the heart of how we work 1.2 This report relates to all these objectives. 2. Resource Implications Financial 2.1 There are no direct financial implications arising from this report other than those reported within the body of the main report. Page 28 of 102
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Workforce 2.2 There are no direct workforce implications arising from this report other than those reported within the body of the main report. Asset Management (land, property, IT) 2.3 There are no direct asset management implications arising from this report other than those reported within the body of the main report. 3. Assessments Equality Impact Assessment 3.1 Under the Equality Act 2010, the Council is required to eliminate discrimination, advance equality of opportunity, and foster good relations between equality groups. Carrying out Equality Impact Assessments for plans and policies allows the Council to demonstrate that it is meeting these duties. 3.2 The information contained within this report has been considered under the Corporate Equalities Impact Assessment process (EqIA) and has been assessed as not relevant for the purposes of EqIA. Strategic Environmental Assessment 3.3 The Environmental Assessment (Scotland) Act 2005 places a duty on the Council to identify and assess the environmental consequences of its proposals. 3.4 The information contained within this report has been considered under the Act. However, no action is required as the Act does not apply to the matters presented in this report. Sustainability 3.5 Under the provisions of the Local Government in Scotland Act 2003 the Council must discharge its duties in a way which contributes to the achievement of sustainable development. In terms of the Climate Change Act, the Council has a general duty to demonstrate its commitment to sustainability and the community, environmental and economic impacts of its actions. 3.6 The information contained within this report has been considered under the Act. However, no action is required as the Act does not apply to the matters presented in this report. 4. Consultation Internal 4.1 The Executive Leadership Team have been consulted in the preparation of this report. Page 29 of 102
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2. BACKGROUND PAPERS 2.1 No background papers, as defined by Section 50D of the Local Government (Scotland) Act 1973 (other than any containing confidential or exempt information) were relied on to any material extent in preparing the above report. 3. APPENDICES • Appendix 1 – 2022/23 Management Budget • Appendix 2 – General Fund 2022/23 Projected Outturn – Service Analysis • Appendix 3 – Perth & Kinross Integration Joint Board • Appendix 4 – Housing Revenue Account 2022/23 Projected Outturn • Appendix 5 – Revenue Grants • Appendix 6 – Council Approved Projects • Appendix 7 – 2023/24 Management Budget Page 30 of 102
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(1) (2) (3) (4) (5) (6) (7) (8) (9) 2022/23 Previously Movements Virements Movements 2022/23 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 SERVICE £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 % Education & Children's Services 212,418 11,742 866 3,056 (1,309) 226,773 225,960 (813) (0.36%) Communities 71,165 4,840 5 (115) (336) 75,559 74,311 (1,248) (1.65%) Corporate & Democratic Services 35,228 6,344 90 (706) 40,956 41,806 850 2.08% Chief Executive Service 1,174 1,793 (105) 2,862 2,782 (80) (2.80%) Sub - Total: Service Budgets 319,985 24,719 961 2,941 (2,456) 346,150 344,859 (1,291) (0.4%) Corporate Budgets Health & Social Care 74,866 7,709 85 (79) 82,581 82,282 (299) (0.4%) Contribution to Valuation Joint Board 1,309 1,309 1,309 0 0.00% Capital Financing Costs 13,866 (1,408) (15) 12,443 12,443 0 0.00% Interest on Revenue Balances (200) (1,827) 79 (1,948) (1,948) 0 0.00% Net Contribution to/(from) Capital Fund 1,530 (19) (64) 1,447 1,447 0 0.00% Contribution to/(from) Insurance Fund 200 1,000 1,200 1,200 0 0.00% Trading Operations Surplus (550) (550) (300) 250 45.45% Support Service External Income (2,153) (2,153) (2,153) 0 0.00% Tayside Pension Fund 1,565 1,565 1,565 0 0.00% Contribution to 2022/23 Pay Award 0 4,192 (4,192) 0 0 0 0.00% Apprenticeship Levy 818 818 818 0 0.00% Council Tax Reduction Scheme 6,200 6,200 6,880 680 10.97% Discretionary Relief 150 150 150 0 0.00% Net Expenditure (General Fund) 417,586 34,366 961 (1,166) (2,535) 449,212 448,552 (660) (0.1%) Financed By: Revenue Support Grant (234,656) (23,890) (961) (259,507) (259,507) 0 0.00% Ring Fenced Grant (17,194) (209) (17,403) (17,403) 0 0.00% Non Domestic Rate Income (46,141) (46,141) (46,141) 0 0.00% Council Tax Income (98,941) 6,737 (92,204) (92,404) (200) (0.2%) Capital Grant (1,600) (120) 30 (1,690) (1,690) 0 0.00% Total Financing (398,532) (17,482) (961) 30 0 (416,945) (417,145) (200) (0.0%) Financed from/(returned to) Reserves 19,054 16,884 0 (1,136) (2,535) 32,267 31,407 (860) PERTH & KINROSS COUNCIL GENERAL FUND 2022/23 REVENUE BUDGET - SUMMARY 6 Page 31 of 102
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APPENDIX 2 PERTH & KINROSS COUNCIL - GENERAL FUND 2022/23 PROJECTED OUTTURN - SERVICE ANALYSIS (Based on Expenditure to 31 January 2023) Variance Variance £'000 £'000 Education & Children's Services Total (813) DEVOLVED SCHOOL MANAGEMENT SCHEME (DSM) There are 66 primary schools, 7 secondary schools, 4 all through schools, 46 nurseries and early learning centres and 1 special school within the Council's DSM scheme. Each school has an individual budget, primarily based on pupil numbers. Headteachers are responsible for the annual budgets devolved to them in April each year. The total DSM budget for 2022/23 is £113.876 million including carry forwards. Within the scheme there is a facility allowing for DSM balances, whether surplus or deficit, to be brought forward from the previous financial year. In addition to the resources devolved, balances may also be available to headteachers of schools that have a carry forward. In 2021/22, £1.191 million of DSM balances were brought forward. (816) Staff Costs Additional slippage due to staff turnover (107) Property Costs Projected under spend on landfill recharges based on latest activity. 116 Supplies & Services Projected over spend on supplies and services within schools. 807 There is currently a projected net under spend of £807,000 based on current spending plans from schools for the current academic year that runs to June 2023. The maximum carry forward under the DSM scheme is 2.5%, the current projection is 0.7%. Pupil Equity Fund (300) The majority of schools within Perth & Kinross Council have been allocated a share of £1.874 million of Pupil Equity Funding from the Scottish Government as a ring fenced grant. Schools are being instructed to use this year’s PEF Grant by 31 March 2023 as per the revised Scottish Government guidance. At this time £300,000 is projected to be carried forward into 2023/24 for teacher and support staff costs to the end of the current academic year. 300 Projected carry forward of Pupil Equity Funding. NON DEVOLVED Education Services Nursery Sector (354) Additional slippage due to turnover of staff. (25) Savings from Industrial action (31) Savings from non-domestic rates as early learning centres are exempt from the charge. Primary Sector (706) Savings from industrial action Secondary Sector (83) Additional slippage due to turnover of staff. (698) Savings from Industrial action (163) Projected under spend on investment in learning unitary charge due to an insurance rebate. (20) Home to School Transport - projected under spend due to less school days (£47,000) partially offset by projected over spend on transport costs for Central Music Groups (£27,000). 70 Projected shortfall on income from Renewable Heat Initiative Rebate (£70,000). SERVICE Summary of Service Variances 6 Page 33 of 102
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APPENDIX 2 PERTH & KINROSS COUNCIL - GENERAL FUND 2022/23 PROJECTED OUTTURN - SERVICE ANALYSIS (Based on Expenditure to 31 January 2023) Variance Variance £'000 £'000SERVICE Summary of Service Variances Special Sector (163) Additional slippage due to turnover of staff. (105) Savings from industrial action. (337) Projected under spend on home to school transport after allowing for non-recurring increase of £250,000. (216) There is a projected under spend on the budget for young people with additional support needs (ASN) who are educated out with the Council's mainstream school provision. 1,534 Transfer to Reserves of savings from industrial action. Services for Children, Young People & Families (264) Additional slippage due to turnover of staff. 99 Projected over spend on legal fees and translation / interpreter services 77 Projected over spend on client travel. 1,466 The budget for young people with complex behavioural issues, which includes a number of pupils placed within residential schools, is projected to overspend due to additional demand. 294 A projected over spend on Kinship Care (£545,000) due to demand partially offset by a projected under spend in Foster Care (£251,000). (8) There is a projected under spend in relation to supporting care experienced young people (continuing care, supported accommodation). 95 There is a projected over spend on self directed support (children & disability team - respite provision) due to the level of demand and an increase to the hourly rate paid to clients. (293) Additional grant funding for Unaccompanied Asylum Seeking Children (£246,000); Wellbank rental income (£20,000) and the Alcohol & Drug Partnership (£27,000). Business and Resources Services (227) Additional slippage due to turnover of staff. (53) Projected under spend due to Area Office recharge no longer required, reduced travel and reduction in spend. 20 Projected over spend on school clothing grants based on activity to date. Catering Services (68) Additional staff slippage. (600) Projected under spend within the Early Learning & Childcare 1140 grant for nursery meals. (236) Projected under spend of school meals due to uptake partially offset below by reduced income. 63 Projected over spend on Free School Meals during holiday periods due to need and two extra public holidays. 119 Projected shortfall in income from breakfast clubs. Page 34 of 102
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APPENDIX 2 PERTH & KINROSS COUNCIL - GENERAL FUND 2022/23 PROJECTED OUTTURN - SERVICE ANALYSIS (Based on Expenditure to 31 January 2023) Variance Variance £'000 £'000SERVICE Summary of Service Variances Communities Total (1,248) BUSINESS AND RESOURCES Service Wide (1,000) Staff slippage in excess of budgeted target Administration 90 Projected over spend on IT Licensing & Support costs 30 Various minor projected over spends across Business & Resources Public Transport Unit / Car Parking Account 25 Perth Bus Station - increased costs (80) Corporate Asset Management - accelerated savings 50 Car Park Trading Account - projected reduction in income and increased provision for bad debts (50) Drawdown from Car Park Trading Account earmarked Reserve 135 Projected over spend on tendered services (65) Additional income from Park and Ride departure charges ENVIRONMENTAL AND CONSUMER SERVICES Roads (250) Projected additional income from statutory road network works 150 Additional costs of recent severe weather events 750 Projected over spend on winter maintenance 110 Maintenance works at River Ericht (95) Contribution from Scottish Government (200) Projected saving on street lighting power due to positive impact of LED replacement programme (50) Projected under spend on street lighting maintenance (100) Projected under spend and additional grant income across traffic & network budgets (100) Projected under spend on programme of flood risk studies Regulation 25 Projected shortfall in Corporate Health and Safety income Operations 220 Projected shortfall in commercial waste income (150) Projected additional income from sale of recyclates due to favourable market prices 300 Projected additional cost of fuel across Operations due to increase in price 50 Additional hire costs for refuse collection vehicles (150) Projected savings on waste disposal contracts Fleet Management (300) Saving on loan charges due to slippage on planned vehicle replacement programme 250 Additional cost of vehicle materials and repairs Community Greenspace (50) Projected underspends across Community Greenspace budgets Bereavement Services (80) Additional income from Bereavement Services PLANNING AND DEVELOPMENT 127 Perth Harbour - projected increase in operating costs /shortfall in income 60 Projected shortfall in Commercial Rent Income (75) Projected under spend within Market Development Grants (90) Various minor under spends and additional income across Planning & Development (750) Additional Planning & Building Warrant Income (70) Various under spends across Business & Place (50) Various under spends across Employability (30) Projected under spend within Housing Strategy 90 Projected over spend within Events budgets Page 35 of 102
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APPENDIX 2 PERTH & KINROSS COUNCIL - GENERAL FUND 2022/23 PROJECTED OUTTURN - SERVICE ANALYSIS (Based on Expenditure to 31 January 2023) Variance Variance £'000 £'000SERVICE Summary of Service Variances HOUSING 35 Greyfriars - projected increased in void rent loss and provision for bad debts 10 Greyfriars - projected increase in energy costs (25) Temporary accommodation - reduction in estimated bad debt provision (15) St Catherine's - reduced security costs 30 Cost of Local House Condition Survey to inform the Local Housing Strategy 30 Void Rent Loss for Housing Support properties 20 Various minor projected over spends with Safer Communities (10) Various minor projected under spends within Housing Page 36 of 102
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APPENDIX 2 PERTH & KINROSS COUNCIL - GENERAL FUND 2022/23 PROJECTED OUTTURN - SERVICE ANALYSIS (Based on Expenditure to 31 January 2023) Variance Variance £'000 £'000SERVICE Summary of Service Variances Corporate & Democratic Services Total 850 Legal & Governance Services (72) Additional staff slippage (74) Projected additional income from licensing and recharges 28 Projected over spend in relation to elected members 12 Net projected over spend across function Finance (11) Net projected under spend across Division Human Resources (196) Additional projected income from salary sacrifice scheme and other recharges Net projected over spend on other budgets Information Technology and Revenues & Benefits (16) Miscellaneous other projected net under spends. Property 599 Projected over spend on energy costs due to inflationary pressures. 850 Projected over spend on maintenance relating to compliance remedial works. (270) Net projected under spend on staff costs after adjusting for professional fee income chargeable on projects Chief Executive Service Total (80) Core Costs (80) Staff slippage and additional income TOTAL (1,291) Page 37 of 102
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APPENDIX 3 Perth and Kinross Integration Joint Board (IJB) Projected outturn based on Revenue Monitoring to 31 December 2022 Social Care Health Health & Social Care Partnership £'000 £'000 £'000 DEVOLVED FUNCTIONS Older People Services (2,496) (44) (2,540) Adult Services (33) (774) (807) Other Community Services (389) 0 (389) Management/Commissioned/Other (667) (592) (1,259) Undelivered Savings 1,193 740 1,933 Budget Deficit 0 210 210 Sub Total - Hospital & Community Health (2,392) (460) (2,852) P&K IJB Hosted Services 0 (592) (592) Dundee & Angus Hosted Services Recharges In/Out excl Covid 0 253 253 Sub Total - Hosted Services 0 (339) (339) GP Prescribing / Other Family Health Services 0 795 795 General Medical Services / Family Health Services 0 381 381 Sub Total - PKHSCP (2,392) 377 (2,015) PKC Funding (708) 0 (708) Total Projected Outturn PKHSCP (3,100) 377 (2,723) Projected Out-turn Over / (Under) Spend 6 Page 39 of 102
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APPENDIX 4 PERTH & KINROSS COUNCIL - HOUSING REVENUE ACCOUNT 2022/23 PROJECTED OUTTURN (Based on expenditure to 31 January 2023) £'000 324 Housing Repairs A projected over spend within stores (£200,000) as a result of the increased cost of materials, agreed increase in costs for Internet of Things (IOT) project due to increased demand (£20,000), projected increase in costs for diesel (£29,000), increased costs for gas and electric (£37,000), transport hire costs (£38,000) plus increased costs for waste disposal (£41,000). These projected over spends are partially offset by staff slippage (£41,000). (189) Improvements Projected under spend on staff costs (£100,000) and additional income from OFGEM (£95,000) partially offset by other minor over spends (£6,000). 16 Letham, North & South Projected over spends on staff costs (£43,000), decant costs due to burst pipes (£20,000) and non-staff budgets (£14,000). These pare partially offset by projected under spends on transport costs (£20,000) and Sheriff Officers fees and related income (£41,000). 102 Perth City and Specialist Projected net over spends on electricity and gas costs within Sheltered Housing (£80,000), decant costs due to burst pipes (£33,000), non-staff budgets (£8,000) and cleaning costs (£10,000) partially offset by additional staff slippage (£5,000) and additional housing register income (£24,000). 26 Housing Management Projected over spend on staff costs, including the Apprenticeship Levy (£17,000) and other non staff budgets (£9,000). (215) Administration Projected under spend on bad debt provision (£350,000), lower corporate recharges compared to budget (£103,000), reduced recharges from the General Fund (£58,000) and under spends in non-staff budgets (£22,000). These are partially offset by projected over spends on void rent loss based on similar trend to last year (£162,000), void rates / Council Tax / utilities (£106,000), bad debt provision (£37,000) and recharges (£13,000). 2 Income Projected shortfall in income from commercial rents (£17,000) and mainstream housing (£104,000) which is partially offset by increases in interest on revenue balances (£100,000). (66) 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. 0 Summary of Service Variances 6 Page 41 of 102
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APPENDIX 5 Other Grant Funding Education & Children’s Services Scottish Government – Educational Support to Ukrainian Children & Young People £675,718 Communities Scottish Government – Delivery of Rural Community Led Local Development Funding 2022/23 (CLLD) £262,462 UK Government – DLUHC - UK Shared Prosperity Fund £893,684 Corporate & Democratic Services Scottish Government - DHP 2022/23 Additional Funding £50,644 TOTAL £1,882,508 6 Page 43 of 102
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APPENDIX 6 Council Approved Projects - 23 February 2022 Education & Children’s Services Food Insecurity Funding £20,000 Communities Rural Events £40,000 Total £60,000 6 Page 45 of 102
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(1) (2) (3) (4) (5) 2023/24 Movements Virements Movements 2023/24 Council in in Revised Approved Funding Reserves Mgt Budget Budget SERVICE £'000 £'000 £'000 £'000 £'000 Education & Children's Services 230,985 (4) 270 231,251 Communities 70,439 130 30 140 70,739 Corporate & Democratic Services 39,596 822 90 40,508 Chief Executive Service 3,712 75 3,787 Sub - Total: Service Budgets 344,732 948 30 575 346,285 Corporate Budgets Health & Social Care 83,958 2,905 179 87,042 Contribution to Valuation Joint Board 1,309 1,309 Capital Financing Costs 15,137 15,137 Interest on Revenue Balances (5,054) (5,054) Net Contribution to/(from) Capital Fund 3,099 3,099 Contribution to/(from) Insurance Fund 200 200 Trading Operations Surplus (550) (550) Support Service External Income (2,153) (2,153) Tayside Pension Fund 1,725 1,725 Apprenticeship Levy 818 818 Council Tax Reduction Scheme 6,200 6,200 Discretionary Relief 1,104 1,104 Net Expenditure (General Fund) 450,525 3,853 30 754 455,162 Financed By: Revenue Support Grant (239,627) (3,722) (243,349) Ring Fenced Grant (17,725) 4 (17,721) Non Domestic Rate Income (60,754) (60,754) Council Tax Income (103,914) (103,914) Capital Grant (1,600) (30) (1,630) Total Financing (423,620) (3,718) (30) 0 (427,368) Financed from/(returned to) Reserves 26,905 135 0 754 27,794 PERTH & KINROSS COUNCIL GENERAL FUND 2023/24 REVENUE BUDGET - SUMMARY 6 Page 47 of 102
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PERTH & KINROSS COUNCIL FINANCE & RESOURCES COMMITTEE 26 APRIL 2023 COMPOSITE CAPITAL BUDGET 2022/28 & HOUSING INVESTMENT PROGRAMME 2022/27 – MONITORING REPORT NUMBER No.4 Report by the Head of Finance (Report No. 23/121) 1. PURPOSE This report provides a summary position to date for the 6-year Composite (General Fund) Capital Budget for 2022/23 to 2027/28 and the 5-year Housing Investment Programme 2022/23 to 2026/27 and seeks approval for adjustments to the budgets. 2. RECOMMENDATIONS 2.1 It is recommended that the Committee: (i) notes the contents of this report. (ii) approves the proposed adjustments to the six-year Composite Capital Budget 2022/23 to 2027/28 set out in Sections 5 and 6 of this report and summarised in Appendices I and II. (iii) approves the proposed adjustments to the Housing Investment Programme Budget 2022/23 to 2026/27 set out in Section 7 of this report and summarised in Appendix III. (iv) notes progress with the delivery of major Capital projects as summarised in Appendix IV. 3. STRUCTURE This report is structured over the following sections: • Section 4: Background • Section 5: Composite Capital Programme – Gross Capital Resources • Section 6: Composite Capital Programme – Expenditure • Section 7: Housing Investment Programme • Section 8: Summary 4. BACKGROUND / MAIN ISSUES 4.1 The Finance & Resources Committee approved an updated six-year gross Composite Capital Budget for 2022/23 to 2027/28 totalling £696,021,000 and 7 Page 49 of 102
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a five-year gross Housing Investment Programme for 2022/23 to 2027/28 totalling £84,018,000 at its meeting on 1 February 2023 (report 23/31 refers). 4.2 At is meeting on 1 March 2023, the Council approved a revised Composite Capital Budget for the 5 years 2023/24 to 2027/28 (report 23/73 refers). The total gross budget for the 6 years, after including 2022/23, totalled £727,565,000. 4.3 This report advises on expenditure to 28 February 2022, and the latest estimate of the projected outturn for each of the years to 2027/28 for the Composite Programme and to 2026/27 for the Housing Investment Programme. 5. COMPOSITE CAPITAL PROGRAMME – GROSS CAPITAL RESOURCES 5.1 On 1 March 2023 the Council approved a revised Composite Capital Budget totalling £727,565,000, including 2022/23, which reflected an increase in resources of £31,544,000 from the Budget approved on 1 February 2023. All approved movements in resources and expenditure have been included in Appendices I and II of this report and are summarised in the table below: Increase in Gross Expenditure: £’000 Increase in budget - Blairgowrie Recreation Centre 9,300 Contribution to phase 1 enabling works - Perth Eco Innovation Park (Gross: £10 million plus forecast receipts) 11,731 Garry Viaduct 4,400 Bridges & Structures 2,000 Roads Structural Maintenance 2,000 New Gypsy Traveller Site 2,000 Council Property – Decarbonisation 2,000 Free School Meals (FSM) 2,435 Increased funding for Cycling Walking & Safer Streets 472 Other - Mosaic System, SEEMiS & A977 Upgrade 1,630 Collections Store – removed (6,424) Total Increase in Gross Expenditure 31,544 Funded By: Increase in General Capital Grant (Pay Award, FSM, CWSR, General Allocation) (6,382) Perth Eco Innovation Park – Contributions & Receipts (1,731) Increase in Other Receipts & Contributions (140) Increase in Borrowing 23,291 5.2 As a result of ongoing monitoring of the programme, 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 2022/23 to 2027/28 now amount Page 50 of 102
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to £727,448,000. Movements from the revised Composite Capital Budget approved on 1 March 2023 are summarised in the table below, and the constituent elements for each year are shown in Appendix I. Total Gross Composite Capital Resources Approved 1 March 2023 Current Estimate Movement £’000 £’000 £’000 2022/23 126,524 113,845 (12,679) 2023/24 192,880 198,729 5,849 2024/25 182,661 193,284 10,623 2025/26 111,465 109,577 (1,888) 2026/27 67,816 65,408 (2,408) 2027/28 46,219 46,605 386 Total 727,565 727,448 (117) 5.3 The overall movement in the total Gross Resources for the 6 years 2022/23 to 2027/28 since 1 March 2023 shown at Section 5.2 above can be summarised as follows: £’000 Net Increase in Capital Grants (Section 5.4) 656 Increase in Third Party and Revenue Contributions (Section 5.5) 431 Net Increase in Receipts 24 Reduction in Borrowing Requirement (Section 5.6 and 5.7) (1,228) Reduction in Gross Capital Resources (Section 5.2) (117) 5.4 The final Local Government Finance Circular issued on 1 March 2023 reflects a reduction of £13,000 in the Council’s General Capital Grant in 2023/24 from the indicative amount included in the provisional settlement issued in December 2022. Consequently, the estimated borrowing has been increased by a corresponding amount. There is also an increase in specific Scottish Government Grants, with an additional £310,000 for Cycling Walking & Safer Streets (Section 6.3.3) and £359,000 for the Recycling Improvement Fund (Section 6.3.12). 5.5 There are various movements between years in Third Party Contributions with an overall increase of £105,000, relating to Breadalbane Community Campus pitch upgarde (£29,000 Section 6.2.5), Cycling Walking & Safer Streets (£15,000 Section 6.3.3) and Auchterarder Public Park (£61,000 Section 6.3.11). There is also an increase of £326,000 in Revenue Contributions. These relate to the Almondbank Flood Protection Scheme (£54,000, Section 6.3.7), the Town Centre Fund programme (£23,000, Section 6.3.9) and the implementation of the Mosaic Social Work System (£249,000, Section 6.4.5). 5.6 The projected Borrowing Requirement in 2022/23, which is effectively the balancing item for resources, is £71,264,000. This is £12,262,000 lower than the Borrowing Requirement approved on 1 March 2023, and mainly reflects the revised phasing of the Cross Tay Link Road (CTLR). Page 51 of 102
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5.7 The total Borrowing Requirement in the subsequent years 2023/24 to 2027/28 has increased by £11,034,000 to £491,829,000, resulting in a reduction of £1,228,000 across the whole 6-year programme. The movement in borrowing is summarised as follows: 2022/23 2023/24 2024/25 Later Years Total £’000 £’000 £’000 £’000 £’000 Reduction in General Capital Grant (Section 5.4) 0 13 0 0 13 (Decrease)/Increase in CTLR expenditure (Section 6.3.6) (14,493) 12,638 1,855 0 0 (Decrease) in Communities LED Street Lighting Prudential Borrowing (Section 6.3.15) (120) (177) (66) (878) (1,241) Movements arising from re- phasing of other expenditure and receipts (Appendix II) 2,351 (7,904) 8,710 (3,157) 0 (Decrease)/Increase in Borrowing Requirement (12,262) 4,570 10,499 (4,035) (1,228) 5.8 The chart below shows the Capital Resources required to fund the 2022/23 Composite Capital Programme following the proposed budget adjustments detailed in this report. 6. COMPOSITE CAPITAL PROGRAMME – EXPENDITURE 6.1 Total Expenditure and Proposed Budget Adjustments to the Current Programme 6.1.1 Total expenditure (net of grants and contributions) to 28 February 2023 on the Composite Capital Programme amounts to £67,104,000, which is detailed in Appendix II and summarised as follows: 62.6% 32.2% 0.6% 1.4% 2.9% 0.5% 5.2% Projected Capital Resources 2022/23 (March 2023) Borrowing (£71.264M) Grants (£36.620M) Tay City Deal (£0.634M) Developer Contributions (£1.549M) Third Party & Revenue Contributions (£3.248M) Receipts (£0.530M) £Million Page 52 of 102
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Net Expenditure to 28 Feb 2023 £’000 Education & Children’s Services 16,150 Communities 45,101 Health and Social Care 615 Corporate & Democratic Services 5,238 Total 67,104 6.1.2 All the additional expenditure and budget adjustments for each year approved by the Council at its meeting on 1 March 2023 are shown in Appendix II. A comprehensive monitoring exercise has since been carried out, which is detailed in Appendix II. The most significant features are discussed below. 6.2 Education and Children’s Services 6.2.1 The Executive Director (Education & Children’s Services) has reviewed the programme for their Service with the following movements to report at this time. 6.2.2 Following the Council approving a revised budget of £36 million for the new Blairgowrie Recreation Centre on 1 March 2023, the project is now working towards financial close. Financial close and commencement of the works is anticipated for late May 2023 with the new facility expected to be open in December 2024, with phase 2 external works completed by the summer 2025. The spend profile has been rephased in line with the works programme and the revised budgets for each year are detailed in Appendix II. 6.2.3 Within the Investment in the Learning Estate (IILE) budget, works in schools have been progressing at pace with additional suitability improvements having taken place over the past few months. It is, therefore, proposed to accelerate £325,000 from 2024/25 into 2022/23 to cover these works. Due to the phasing of projects at Methven Primary and Braco Primary Schools it is proposed that the IILE budget is reprofiled accordingly with £3,900,000 being moved from 2023/24 into 2025/26 (£1,900,000) and 2026/27 (£2,000,000). 6.2.4 Within the Free School Meals Expansion Programme, it is anticipated that the majority of works will take place in 2024/25. It is, therefore, proposed that £2,000,000 of the budget in 2023/24 is moved to 2024/25. 6.2.5 The Scottish Football Association has awarded a grant of £28,865 to upgrade the pitch at Breadalbane Community Campus in 2023/24. Therefore, this project has been included in Appendix II along with the third-party contribution. Upgrade works at Kirkmichael Primary School are nearing completion and it is proposed that both the remaining budget and the ring- fenced capital receipt funding these works is rephased into 2023/24. With the New Primary School for North/West Perth not due to open until August 2026, only initial fees of £39,000 will be incurred in 2022/23 and it is proposed that £61,000 of the budget is moved to 2023/24. Page 53 of 102
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6.2.6 The construction of Riverside Primary School is in the final stages. There has been a minor delay against the programme, but the school remains on target to open in mid-June. The forecast spend in 2022/23 is, therefore, lower than previously expected and £790,000 requires to be rephased from 2022/23 into 2023/24 in line with the updated programme. 6.2.7 Upgrade works at Perth Academy and Perth Grammar Schools are progressing well and it is proposed that budgets for both projects are accelerated with £297,000 for Perth Academy and £237,000 for Perth Grammar advancing from 2023/24 to 2022/23. 6.2.8 Following the financial close of the project to replace Perth High School, works have commenced on site in February 2023. It was previously expected that the works on site would not commence until April 2023, therefore, £4,200,000 of the budget has been brought-forward from 2023/24 into 2022/23. 6.2.9 All of the above proposed adjustments have been reflected in Appendix II. 6.3 Communities 6.3.1 The Executive Director (Communities) has reviewed the programme for their Service and proposes various budget adjustments, the most significant of which are described below. 6.3.2 Within Traffic & Road Safety, due to limited staff capacity, the team are focusing on the delivery of grant funded projects where funding is time limited. The Road Safety initiatives budget for 2023/24 has, therefore, required to be rephased over 2024/25 to 2027/28. 6.3.3 The Scottish Government has allocated a further £310,000 to the Council for the Cycling Walking & Safer Routes (CWSR) programme in 2023/24 together with a £15,000 increased contribution from TACTRAN. The budget for School Road Safety Measures in 2023/24 has, therefore, increased by a total of £301,000 with £195,000 brought forward from 2022/23 and £106,000 funded from the CWSR allocation. 6.3.4 Within Asset Management – Roads & Lighting, the planned investment in Local Footpath lighting has had to be reviewed with £100,000 rephased from both 2023/24 and 2024/25 and moved into 2025/26 and 2026/27. 6.3.5 Within Asset Management – Bridges, following the allocation by Council of an additional £2,000,000 budget for the Bridge Refurbishment Programme in March, it is proposed that this is phased over 2023/24, 2024/25 and 2025/26. Work on Dalhenzean Culvert, Dunkeld Golf Course and Tullyfergus Bridge are now unlikely to be completed in 2023/24 and it is proposed that the budgets for these projects are moved to 2027/28. 6.3.6 The contractor for the Cross Tay Link Road (CTLR) has provided an update to the expenditure profile with adjustments to the order in which work is expected to be complete, resulting in an estimated reduction in expenditure in Page 54 of 102
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2022/23 of £14,493,000. This also includes provision incorporated into the 2022/23 budget for construction risk and compensation events which have not yet been fully utilised. It is therefore proposed that £12,638,000 is moved to 2023/24 and £1,855,000 moved into 2024/25. Delivery of the CTLR remains on schedule. 6.3.7 Within the budget for Flood Protection Schemes, a Revenue Contribution towards the final costs on the Almondbank Flood Protection Scheme of £54,000 has been made and the scheme budget adjusted accordingly. The Perth Flood Protection Scheme pump replacement project has been completed and it is proposed that the remaining budget of £161,000 is applied towards the South Inch Culvert Reinstatement, with £35,000 in 2022/23 and £126,000 in 2023/24. It is also proposed to transfer a further £225,000 to the project in 2023/24 from Structural Maintenance. The schemes at Comrie, South Kinross and Scone also require to be rephased, which is detailed in Appendix II. 6.3.8 Within the Perth & Kinross Place-making programme, following the decision of the Council on 1 March 2023, the Perth & Kinross Lighting Action Plan has been rephased to reflect existing commitments, with a further report on the project to be submitted to the Environment, Infrastructure and Economic Development Committee in May 2023. 6.3.9 Within Other Planning Projects, it is proposed to allocate £63,000 towards the Coupar Angus Strathmore Community Hub by utilising £40,000 of the Scottish Government Town Centre Grant and a £23,000 Revenue Contribution. The Low Carbon Transport Hub project has been rephased between 2022/23 and 2023/24 in line with the anticipated spend. 6.3.10 Within City Centre Developments, the Perth Museum project is progressing well and is currently on budget and on track for opening in 2024. Consequently, an accelerated expenditure profile has been received from the contractor and £1,714,000 has been accelerated from 2023/24 into 2022/23. 6.3.11 Within Community Greenspace, Play Areas –the budget for 2023/24 will not be utilised in full, £400,000 of the budget has been moved from 2023/24 into 2024/25. As the priority in 2023/24 has been placed on improvements to Play Areas, the projects for Countryside Sites and Community Greenspace Sites will not progress in 2023/24 and it is therefore proposed that these budgets are rephased across subsequent years of the programme. Also, within Community Greenspace, a further £61,000 contribution has been provided from the community towards the project at Auchterarder Public Park and the expenditure budget has been increased accordingly. 6.3.12 Within Waste Strategy, due to inflation increasing the costs of the additional bins required for the dual stream recycling due to be implemented in 2023, additional grant of £77,000 in 2022/23 and £282,000 in 2023/24 from the Recycling Improvement Fund has been secured which is now reflected within the budget. Page 55 of 102
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6.3.13 Within Support Services, multi-year IT licences require to be accounted for in full at the start of the period covered by the new licence and £163,000 has been moved into 2022/23 with corresponding adjustments to the budgets for future years as detailed in Appendix II. 6.3.14 A number of adjustments require to be made to the budgets for Prudential Borrowing Projects. The Street Lighting Renewal project, which involves LED lighting and column replacement, will not be completed as budgeted due to the capacity to carry out the works. As a result, it is proposed to reduce the project by £1,241,000 in total over the six years of the current Capital plan as set out in Appendix II to better reflect the likely delivery of works. The redevelopment of 1-5 High Street into a boutique hotel is unlikely to be progressed by the developer in 2023/24 because of currently high construction inflation. The Council’s approved £1,900,000 contribution towards the agreed heritage works, therefore, requires to be rephased into 2024/25 and 2025/26. 6.3.15 All the above proposed adjustments, together with various other small movements, have been reflected in Appendices I & II. 6.4 Corporate & Democratic Services 6.4.1 The Chief Operating Officer has reviewed the programme for their Service and proposes the following adjustments described below. Property Services 6.4.2 Upgrades to Pitlochry High School were delayed to allow electrical compliance works to be carried out (Report 23/31 refers). Work has now recommenced, however, access restrictions to some areas due to their continued use for learning means some works will not be undertaken until the summer holidays. Consequently, £170,000 in 2022/23 has been moved into 2023/24. Information Systems & Technology 6.4.3 Within the ICT Infrastructure & Replacement and Upgrade programme, £362,000 of network equipment will be delivered in June 2023 and will require to be accounted for in 2023/24 with the budget adjusted accordingly. 6.4.4 Within the School AV Programme, £100,000 has been rephased into 2023/24 to allow works to be undertaken over the school holiday period. 6.4.5 Following the approval of an additional allocation of £442,000 by the Council in March, the Mosaic social care system project has been extended to 2025/26 to enable ongoing support and development after the go-live date of March 2024. This includes some rephasing of the estimated expenditure each year. The budget is also enhanced by Revenue Contributions in 2024/25 (£124,000) and 2025/26 (£125,000) following the conclusion of the previous supplier contract. Page 56 of 102
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6.4.6 All the above proposed adjustments, together with other small movements have been reflected in Appendices I & II. 6.5 Health & Social Care 6.5.1 The Enabled Telecare project to upgrade the community alarm system to digital is underway. However, due to difficulty in obtaining stock from suppliers, the pace of upgrades has been slower than originally planned. It is anticipated that upgrades will continue at an increased pace over the next year and £550,000 of the budget has, therefore, been rephased into 2023/24. 6.5.2 The above adjustment has been reflected in Appendix II. Major Capital Projects 6.5.3 Appendix IV to the report shows progress on the delivery of major Capital projects within the approved Capital programme. The appendix summarises budgeted expenditure and the current projected outturn on these projects; their anticipated completion date; current status and any significant changes since the last monitoring report. 7. HOUSING INVESTMENT PROGRAMME 7.1 The current estimated expenditure, net of contributions, for the Housing Investment Programme over the 5 years 2022/23 to 2026/27 amounts to £87,018,000. This has increased by £3,000,000 following the approval of the revised Housing Investment Programme by the Housing & Social Wellbeing Committee on 25 January 2023 (report 23/9 refers) which allocated a further £3,000,000 to the Council House Buy-Back Programme in 2026/27. Movements from the previous estimates approved by this Committee on 1 February 2023 are summarised in the table below and detailed in Appendix III. Approved 1 Feb 2023 Current Estimate Movement £’000 £’000 £’000 2022/23 18,990 18,180 (810) 2023/24 16,457 20,422 3,965 2024/25 13,858 13,853 (5) 2025/26 18,669 15,519 (3,150) 2026/27 16,044 19,044 3,000 Total 84,018 87,018 3,000 7.2 The Housing & Social Wellbeing Committee also approved a new budget for 2027/28 amounting to £19,044,000. This will be included in the first monitoring report for 2023/24 in September 2023. 7.3 Total Expenditure to 28 February 2023 (Housing Investment Programme) Net expenditure for 2022/23 to 28 February 2023 amounts to £10,531,000 and receipts amount to £9,000. This therefore means that the borrowing requirement for the year to date is £10,522,000. Page 57 of 102
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7.4 £218,000 on the New Build Programme at Lynedoch Road, Methven has been accelerated from 2023/24 into 2022/23 reflecting progress made on the construction work. The Council House Buy-Backs budget has been increased by £822,000 to reflect the additional properties purchased in 2022/23. As a result, an extra £210,000 of Scottish Government grant has been awarded in 2022/23, with the balance of £612,000 being brought forward from the 2023/24 budget. 7.5 It is proposed to bring forward and allocate £3,150,000 of the SHQS Future Developments Budget in 2025/26 to various projects as follows: • Triple Glazing, with £200,000 in 2022/23 and £2,500,000 in 2023/24, following the award of a new windows contract under Phase 4 of the programme. • Bathroom Modernisation Programme, with £400,000 required in 2022/23 to meet additional Occupational Therapy referrals. • Sheltered Housing, with £30,000 required in 2022/23 for the Fire Alarm Replacement at Carpenter Court, Perth. A further £5,000 is required in 2022/23 for boiler upgrades to allow remote monitoring, with this amount being accelerated from the 2024/25 budget for Sheltered Housing. 7.6 Expenditure on the following programmes has been accelerated from 2023/24 into 2022/23: • Kitchen Modernisation Programme - £50,000 to cover additional kitchen renewals. • External Fabric - £400,000, to cover additional properties identified from the Tennant Management Scheme. 7.7 The review of the programme has also identified some areas where budgets in 2022/23 have required to be moved into 2023/24 to reflect planned levels of work: • Central Heating & Rewiring works - £142,000. The main contract was completed on 31 March 2023, whilst the budget allocation included an element of ad-hoc boiler replacements and re-wiring works which are to be rephased into 2023/24. • Anchor House, Rannoch Road, Perth - £100,000, due to additional works on the walkway delaying the main programme works, which is still to be finalised. • Shops & Offices - £186,000, with no works identified in 2022/23. • Upgrade & Replacement Lift Programme - £139,000, with no further works planned for 2022/23. • ICT Expenditure - £178,000, with no required expenditure in 2022/23. 7.8 The revised level of Capital Funded from Current Expenditure (CFCR) approved by the Housing & Wellbeing Committee in setting the Housing Revenue Account budget in January 2023, together with the additional £3,000,000 allocated to Council House Buy-Back has increased the borrowing requirement for the overall programme by a net £8,287,000 to £75,625,000. Page 58 of 102
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8. SUMMARY 8.1 The projected net expenditure outturn in 2022/23 for the Composite Capital Budget is £87,960,000 and represents 64% of the 2022/23 budget as approved on 20 April 2022 (£138,276,000). This reflects the adjustments outlined within this report and the rephasing of the expenditure profile for major projects since the Capital budget for 2022/23 was originally set in April 2022. 8.2 Net expenditure to 28 February 2023 on the Composite Capital Budget is £67,104,000 and represents 76% of the forecast revised budget for 2022/23 of £87,960,000. However, actual expenditure to 28 February 2023 shown above does not include accrued expenditure or provision for works certified as completed by that date. All such expenditure is accounted for when preparing the final outturn as at 31 March 2023. 8.3 The projected net expenditure outturn in 2022/23 for the Housing Investment Programme is £18,180,000 and represents 101% of the 2022/23 budget approved on 20 April 2022 (£17,963,000). 8.4 Net expenditure to 28 February 2023 on the Housing Investment Programme is £10,531,000, subject to the same caveat outlined above for the Composite Programme, which represents 58% of the forecast revised budget for 2022/23 of £18,180,000. 8.5 A summary of the major capital projects included with the Council’s Composite Capital Budget and Housing Investment Programme and their current status is included at Appendix IV. Author(s) Name Designation Contact Details John Jennings Senior Accountant CHXFinance@pkc.gov.uk Approved Name Designation Date Karen Donaldson Stewart MacKenzie Chief Operating Officer Head of Finance 14 April 2023 14 April 2023 Page 59 of 102
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ANNEX 1. IMPLICATIONS, ASSESSMENTS, CONSULTATION AND COMMUNICATION Strategic Implications Yes / None Community Plan / Single Outcome Agreement None Corporate Plan Yes Resource Implications Financial Yes Workforce Yes Asset Management (land, property, IST) Yes Assessments Equality Impact Assessment Yes Strategic Environmental Assessment Yes Sustainability (community, economic, environmental) Yes Legal and Governance None Risk None Consultation Internal Yes External None Communication Communications Plan None 1. Strategic Implications Corporate Plan 1.1 The Council’s Corporate Plan 2022 – 2027 lays out seven outcome focussed strategic objectives which provide clear strategic direction, inform decisions at a corporate and service level and shape resources allocation. They are as follows: • Tackling Poverty • Tackling climate change and supporting sustainable places • Growing a sustainable and inclusive local economy • Enabling our children and young people to achieve their full potential • Protecting and caring for our most vulnerable people • Supporting and promoting physical and mental wellbeing • Placing communities at the heart of how we work 1.2 This report relates to all of these objectives. 2. Resource Implications Financial 2.1 There are no direct financial implications arising from this report other than those reported within the body of the main report. Page 60 of 102
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Workforce 2.2 There are no direct workforce implications arising from this report other than those reported within the body of the main report. Asset Management (land, property, IT) 2.3 There are no direct asset management implications arising from this report other than those reported within the body of the main report. 3. Assessments Equality Impact Assessment 3.1 Under the Equality Act 2010, the Council is required to eliminate discrimination, advance equality of opportunity, and foster good relations between equality groups. Carrying out Equality Impact Assessments for plans and policies allows the Council to demonstrate that it is meeting these duties. 3.2 The information contained within this report has been considered under the Corporate Equalities Impact Assessment process (EqIA) and has been assessed as not relevant for the purposes of EqIA. Strategic Environmental Assessment 3.3 The Environmental Assessment (Scotland) Act 2005 places a duty on the Council to identify and assess the environmental consequences of its proposals. 3.4 The information contained within this report has been considered under the Act. However, no action is required as the Act does not apply to the matters presented in this report. Sustainability 3.5 Under the provisions of the Local Government in Scotland Act 2003 the Council has to discharge its duties in a way which contributes to the achievement of sustainable development. In terms of the Climate Change Act, the Council has a general duty to demonstrate its commitment to sustainability and the community, environmental and economic impacts of its actions. 3.6 The information contained within this report has been considered under the Act. However, no action is required as the Act does not apply to the matters presented in this report. 4. Consultation Internal 4.1 The Chief Executive and the Executive Directors have been consulted in the preparation of this report. Page 61 of 102
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2. BACKGROUND PAPERS No background papers, as defined by Section 50D of the Local Government (Scotland) Act 1973 (other than any containing confidential or exempt information) were relied on to any material extent in preparing the above report. 3. APPENDICES • Appendix I – Composite Capital Programme - Estimated Capital Resources 2022/23 to 2027/28 • Appendix II – Composite Capital Programme - Summary of Capital Resources and Expenditure 2022/23 to 2027/28 • Appendix III – HRA Capital Investment Programme – Summary of Capital Resources and Expenditure 2022/23 to 2026/27 • Appendix IV – Significant Capital Projects Progress Update Page 62 of 102
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PERTH AND KINROSS COUNCIL COMPOSITE CAPITAL PROGRAMME Estimated Capital Resources 2022/23 to 2027/28 APPENDIX I Capital Capital Capital Capital Capital Capital Capital Resources Resources Resources Resources Resources Resources Resources 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 TOTAL (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) Revised Revised Revised Revised Revised Revised Revised Budget Budget Budget Budget Budget Budget Budget Capital Grants Cycling, Walking & Safer Routes (CWSR) 973 982 200 200 200 200 2,755 Town Centre Fund 26 0 0 0 0 0 26 Regeneration Fund 524 0 0 0 0 0 524 Recycling Improvement Fund 358 2,363 0 0 0 0 2,721 Cross Tay Link Road - Transport Scotland 20,000 15,000 0 0 0 0 35,000 General Capital Grant 14,739 22,147 13,847 12,639 12,150 12,150 87,672 Total Capital Grants 36,620 40,492 14,047 12,839 12,350 12,350 128,698 General Capital Receipts General Fund - Capital Receipts 8 972 250 250 250 250 1,980 General Fund - Ring Fenced Receipts 122 372 377 377 927 1,072 3,247 Total General Capital Receipts 130 1,344 627 627 1,177 1,322 5,227 Commercial Property Receipts Capital Receipts brought-forward 2,556 2,157 1,006 2,685 2,993 2,993 2,556 Commercial Property Capital Receipts 1 243 1,679 308 0 0 2,231 Capital Receipts carried-forward (2,157) (1,006) (2,685) (2,993) (2,993) (2,993) (2,993) Total Commercial Property Receipts Applied 400 1,394 0 0 0 0 1,794 Contributions Tay Cities Deal 634 1,171 999 550 505 1,956 5,815 Third Party Contributions 2,434 709 0 0 2,000 3,000 8,143 Developer Contributions 1,549 2,100 2,300 2,367 2,600 2,600 13,516 Revenue Budget Contributions 814 99 124 125 0 0 1,162 Total Contributions 5,431 4,079 3,423 3,042 5,105 7,556 28,636 Capital Borrowing Requirement 71,264 151,420 175,187 93,069 46,776 25,377 563,093 TOTAL CAPITAL RESOURCES/ GROSS BUDGET EXPENDITURE 113,845 198,729 193,284 109,577 65,408 46,605 727,448 7 Page 63 of 102
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PERTH AND KINROSS COUNCIL COMPOSITE CAPITAL PROGRAMME Estimated Capital Resources 2022/23 to 2027/28 APPENDIX I Movements in Resources from Approved Budget - 1 March 2023 Revised Revised Revised Revised Revised Revised Revised Budget Budget Budget Budget Budget Budget Budget 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 TOTAL £'000 £'000 £'000 £'000 £'000 £'000 £'000 Increase/(Decrease) in: Capital Receipts - General Fund (38) 38 0 0 0 0 0 Capital Receipts - Commercial Property (342) (710) 1,054 0 0 0 2 Capital Receipts - Ring Fenced (172) 172 0 0 0 0 0 Capital Grants: Cycling, Walking & Safer Routes (CWSR) 0 310 0 0 0 0 310 Road Safety Improvement Fund 0 0 0 0 0 0 0 Free School Meals Expansion 0 0 0 0 0 0 0 Regeneration Fund 0 0 0 0 0 0 0 Recycling Improvement Fund 77 282 0 0 0 0 359 Town Centre Fund 0 0 0 0 0 0 0 Cross Tay Link Road - Transport Scotland 0 0 0 0 0 0 0 General Capital Grant 0 (13) 0 0 0 0 (13) Tay Cities Deal (100) 100 0 0 0 0 0 Third Party Contributions (36) 141 0 0 0 0 105 Revenue Contributions 77 0 124 125 0 0 326 Developer Contributions 0 0 0 0 0 0 0 Resources b/f 0 (117) (1,076) (22) (22) (22) (1,259) Resources c/f to future years 117 1,076 22 22 22 22 1,281 Borrowing Requirement (12,262) 4,570 10,499 (2,013) (2,408) 386 (1,228) Total Increase/(Decrease) in Resources (12,679) 5,849 10,623 (1,888) (2,408) 386 (117) Approved Resources 1 March 2023 126,524 192,880 182,661 111,465 67,816 46,219 727,565 Revised Resources 113,845 198,729 193,284 109,577 65,408 46,605 727,448 Page 64 of 102
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PERTH AND KINROSS COUNCIL COMPOSITE CAPITAL PROGRAMME SUMMARY OF CAPITAL RESOURCES AND EXPENDITURE 2022/23 to 2027/28 APPENDIX II Approved Approved Proposed Revised Actuals Projected Approved Approved Proposed Revised Approved Approved Proposed Revised Budget Budget Budget Budget to Outturn Budget Budget Budget Budget Budget Budget Budget Budget 01-Feb-23 Adjustment Adjustment 28-Feb-23 01-Feb-23 Adjustment Adjustment 01-Feb-23 Adjustment Adjustment 01-Mar-23 Report 4 Report 4 01-Mar-23 Report 4 Report 4 01-Mar-23 Report 4 Report 4 2022/23 2022/23 2022/23 2022/23 2022/23 2022/23 2023/24 2023/24 2023/24 2023/24 2024/25 2024/25 2024/25 2024/25 (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) EDUCATION AND CHILDREN'S SERVICES 30,171 (9,668) 5,030 25,533 16,150 25,533 56,205 11,833 (6,170) 61,868 56,449 150 7,555 64,154 COMMUNITIES 75,268 (7,413) (16,302) 51,553 45,101 51,553 105,103 (13,138) 9,904 101,869 91,413 22,602 2,697 116,712 HEALTH AND SOCIAL CARE 1,332 0 (589) 743 615 743 1,532 0 589 2,121 1,303 0 0 1,303 CORPORATE AND DEMOCRATIC SERVICES 10,795 0 (664) 10,131 5,238 10,131 9,212 2,442 521 12,175 9,168 0 247 9,415 TOTAL NET EXPENDITURE 117,566 (17,081) (12,525) 87,960 67,104 87,960 172,052 1,137 4,844 178,033 158,333 22,752 10,499 191,584 (NET OF GRANTS, REVENUE AND 3RD PARTY CONTRIBUTIONS, AND RING FENCED RECEIPTS) GENERAL CAPITAL GRANT (14,739) 0 0 (14,739) (15,458) (14,739) (13,128) (9,032) 13 (22,147) (16,371) 2,524 0 (13,847) DEVELOPER CONTRIBUTIONS (1,549) 0 0 (1,549) 0 (1,549) (2,100) 0 0 (2,100) (2,300) 0 0 (2,300) CAPITAL RECEIPTS (389) 0 380 (9) (3) (9) (1,887) 0 672 (1,215) (875) 0 (1,054) (1,929) ANNUAL BORROWING REQUIREMENT 100,889 (17,081) (12,145) 71,663 51,643 71,663 154,937 (7,895) 5,529 152,571 138,787 25,276 9,445 173,508 CAPITAL RECEIPTS BROUGHT FORWARD (2,556) 0 0 (2,556) (2,556) (2,556) (2,274) 0 117 (2,157) (2,082) 0 1,076 (1,006) CAPITAL RECEIPTS CARRIED FORWARD 2,274 0 (117) 2,157 2,408 2,157 2,082 0 (1,076) 1,006 2,707 0 (22) 2,685 TOTAL NET BORROWING REQUIREMENT 100,607 (17,081) (12,262) 71,264 51,495 71,264 154,745 (7,895) 4,570 151,420 139,412 25,276 10,499 175,187 7 Page 65 of 102
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PERTH AND KINROSS COUNCIL COMPOSITE CAPITAL PROGRAMME SUMMARY OF CAPITAL RESOURCES AND EXPENDITURE 2022/23 to 2027/28 APPENDIX II EDUCATION AND CHILDREN'S SERVICES COMMUNITIES HEALTH AND SOCIAL CARE CORPORATE AND DEMOCRATIC SERVICES TOTAL NET EXPENDITURE (NET OF GRANTS, REVENUE AND 3RD PARTY CONTRIBUTIONS, AND RING FENCED RECEIPTS) GENERAL CAPITAL GRANT DEVELOPER CONTRIBUTIONS CAPITAL RECEIPTS ANNUAL BORROWING REQUIREMENT CAPITAL RECEIPTS BROUGHT FORWARD CAPITAL RECEIPTS CARRIED FORWARD TOTAL NET BORROWING REQUIREMENT Approved Approved Proposed Revised Approved Approved Proposed Revised Approved Approved Proposed Revised Budget Budget Budget Budget Budget Budget Budget Budget Budget Budget Budget Budget 01-Feb-23 Adjustment Adjustment 01-Feb-23 Adjustment Adjustment 01-Feb-23 Adjustment Adjustment 01-Mar-23 Report 4 Report 4 01-Mar-23 Report 4 Report 4 01-Mar-23 Report 4 Report 4 2025/26 2025/26 2025/26 2025/26 2026/27 2026/27 2026/27 2026/27 2027/28 2027/28 2027/28 2027/28 (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) 35,900 9,818 (3,915) 41,803 17,504 150 (2,350) 15,304 6,823 150 (150) 6,823 42,419 13,166 2,006 57,591 37,370 945 (58) 38,257 27,321 (1,836) 536 26,021 1,303 0 0 1,303 1,303 0 0 1,303 1,319 0 0 1,319 7,732 0 (104) 7,628 6,912 0 0 6,912 6,214 0 0 6,214 87,354 22,984 (2,013) 108,325 63,089 1,095 (2,408) 61,776 41,677 (1,686) 386 40,377 (13,007) 368 0 (12,639) (12,265) 115 0 (12,150) (12,265) 115 0 (12,150) (2,367) 0 0 (2,367) (2,600) 0 0 (2,600) (2,600) 0 0 (2,600) (558) 0 0 (558) (250) 0 0 (250) (250) 0 0 (250) 71,422 23,352 (2,013) 92,761 47,974 1,210 (2,408) 46,776 26,562 (1,571) 386 25,377 (2,707) 0 22 (2,685) (3,015) 0 22 (2,993) (3,015) 0 22 (2,993) 3,015 0 (22) 2,993 3,015 0 (22) 2,993 3,015 0 (22) 2,993 71,730 23,352 (2,013) 93,069 47,974 1,210 (2,408) 46,776 26,562 (1,571) 386 25,377 Page 66 of 102
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PERTH AND KINROSS COUNCIL COMPOSITE CAPITAL PROGRAMME SUMMARY OF CAPITAL RESOURCES AND EXPENDITURE 2022/23 to 2027/28 APPENDIX II EDUCATION AND CHILDREN'S SERVICES COMMUNITIES HEALTH AND SOCIAL CARE CORPORATE AND DEMOCRATIC SERVICES TOTAL NET EXPENDITURE (NET OF GRANTS, REVENUE AND 3RD PARTY CONTRIBUTIONS, AND RING FENCED RECEIPTS) GENERAL CAPITAL GRANT DEVELOPER CONTRIBUTIONS CAPITAL RECEIPTS ANNUAL BORROWING REQUIREMENT CAPITAL RECEIPTS BROUGHT FORWARD CAPITAL RECEIPTS CARRIED FORWARD TOTAL NET BORROWING REQUIREMENT Revised Budget Report 4 (£'000) 215,485 392,003 8,092 52,475 668,055 (87,672) (13,516) (4,211) 562,656 (2,556) 2,993 563,093 Page 67 of 102
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PERTH AND KINROSS COUNCIL COMPOSITE CAPITAL PROGRAMME SUMMARY OF CAPITAL RESOURCES AND EXPENDITURE 2022/23 to 2027/28 APPENDIX II Revised Approved Proposed Revised Actual Projected Revised Approved Proposed Revised Revised Approved Proposed Revised Revised Approved Proposed Budget Budget Budget Budget to Outturn Budget Budget Budget Budget Budget Budget Budget Budget Budget Budget Budget Adjustment Adjustment 28-Feb-23 Adjustment Adjustment Adjustment Adjustment Adjustment Adjustment Report 3 01-Mar-23 Report 4 Report 4 Report 3 01-Mar-23 Report 4 Report 4 Report 3 01-Mar-23 Report 4 Report 4 Report 3 01-Mar-23 Report 4 2022/23 2022/23 2022/23 2022/23 2022/23 2022/23 2023/24 2023/24 2023/24 2023/24 2024/25 2024/25 2024/25 2024/25 2025/26 2025/26 2025/26 (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) EDUCATION AND CHILDREN'S SERVICES MIS - Procurement & Integration 55 2 57 57 57 49 (49) 0 0 0 0 MIS - SEEMIS Licensing 0 0 0 0 98 647 745 0 150 (150) 0 0 150 (150) Blairgowrie Recreation Centre - Replacement 9,868 (9,668) 500 700 103 700 8,435 9,300 (435) 17,300 6,600 5,600 12,200 0 9,668 (5,665) Schools Modernisation Programme Investment in the Learning Estate 975 325 1,300 1,088 1,300 4,904 (3,900) 1,004 11,013 (325) 10,688 6,650 1,900 Free School Meal Expansion Programme 913 913 913 0 2,435 (2,000) 435 0 2,000 2,000 0 Methven Primary School Refurbishment 311 (31) 280 219 280 0 31 31 250 250 0 Breadalbane Academy, Aberfeldy - 3G Pitch 0 0 0 0 29 29 0 0 0 Third Party Contribution (The Scottish Football Association) 0 0 0 0 (29) (29) 0 0 0 Kirkmichael Primary School Upgrades 98 (7) 91 91 91 0 7 7 0 0 0 Capital Receipt (ring-fenced) (100) 100 0 0 0 (100) (100) 0 0 0 Early Learning & Childcare 38 38 38 38 0 0 0 0 0 - Letham Primary School Upgrade Project 19 19 19 0 0 0 0 0 - Rattray Primary School Upgrade Project 1,345 300 1,645 1,431 1,645 470 (300) 170 0 0 0 North/West Perth - New Primary School 100 (61) 39 39 1,000 61 1,061 7,500 7,500 15,000 Riverside Primary New School 12,018 (790) 11,228 9,534 11,228 2,635 790 3,425 0 0 0 Technology Upgrades 45 (30) 15 15 15 800 (400) 400 586 430 1,016 0 Perth Academy - Refurbishment 1,368 297 1,665 1,409 1,665 1,812 (297) 1,515 2,500 2,500 2,150 Perth Grammar School - Upgrade Programme Phase 3 361 237 598 427 598 1,700 (237) 1,463 1,500 1,500 1,500 Perth High School - Internal Services & Refurbishment 21 (12) 9 9 9 0 12 12 0 0 0 Perth High School - New School Investment 1,636 4,200 5,836 1,147 5,836 30,300 30,300 26,500 26,500 10,600 Harris Academy/Invergowrie - Extension 1,100 1,100 582 1,100 4,100 4,100 0 0 0 TOTAL: EDUCATION AND CHILDREN'S SERVICES 30,171 (9,668) 5,030 25,533 16,150 25,533 56,205 11,833 (6,170) 61,868 56,449 150 7,555 64,154 35,900 9,818 (3,915) COMMUNITIES Traffic & Road Safety Road Safety Initiatives (20mph Zones etc..) 0 0 0 512 (512) 0 335 27 362 200 162 Additional Road Safety - Pedestrian Crossings 0 0 0 175 175 175 175 175 Schools Road Safety Measures 440 (195) 245 222 245 106 301 407 0 0 0 Scottish Government Grant - CWSS 0 (106) (106) (106) 0 0 0 0 0 20mph Signage Programme - Schools 111 111 15 111 89 89 0 0 0 20mph Signage Programme 0 0 0 76 76 0 0 0 Cycling Walking & Safer Routes (CWSR) 1,078 (91) 987 488 987 200 472 310 982 200 200 200 Scottish Government Grant - CWSR (973) 106 (867) (171) (867) (200) (472) (310) (982) (200) (200) (200) Third Party Contribution (TACTRAN) (105) (15) (120) (120) 0 0 0 0 0 Car Parking Investment 45 45 13 45 277 277 0 0 0 Car Parking Investment - Pitlochry 0 0 0 150 150 0 0 0 Strathmore Cycle Network 0 0 0 84 (84) 0 0 0 0 84 Sub-Total 596 0 (301) 295 567 295 1,469 0 (295) 1,174 510 0 27 537 375 0 246 Asset Management - Roads & Lighting Structural Maintenance 13,770 13,770 10,910 13,770 9,541 2,000 (225) 11,316 9,593 9,593 9,593 Third Party Contribution (Forestry Commission Timber Routes) (1,316) (1,316) (473) (1,316) 0 0 0 0 0 Traffic Signal Renewals - Upgrading 199 (94) 105 101 105 0 94 94 0 0 0 Third Party Contributions (3) (3) (3) 0 0 0 0 0 Footways 524 524 481 524 435 435 435 435 435 Third Party Contributions 0 0 (2) 0 0 0 0 0 0 Investment in Local Footpaths 0 0 0 100 (100) 0 100 (100) 0 0 100 Road Safety Barriers 10 10 11 10 23 23 0 0 0 Sub-Total 13,184 0 (94) 13,090 11,028 13,090 10,099 2,000 (231) 11,868 10,128 0 (100) 10,028 10,028 0 100 Asset Management - Bridges Bridge Refurbishment Programme 688 (59) 629 346 629 2,312 2,000 (743) 3,569 1,471 658 2,129 1,341 104 Dalhenzean Culvert 43 43 43 264 (264) 0 0 0 0 Dunkeld Golf Course 27 2 29 29 0 0 219 (219) 0 0 Vehicular Bridge Parapets Programme - Assess & Upgrade 0 0 0 29 (29) 0 0 29 29 0 Old Perth Bridge - Strengthening 10 10 10 180 180 10 10 2,369 Perth Queens Bridge - Strengthening 0 0 0 385 (50) 335 10 50 60 70 Garry Viaduct 0 0 0 0 110 110 0 300 300 0 300 Culteuchar Culvert 42 42 1 42 357 38 395 0 0 0 Glendevon Bridge 235 235 210 235 0 0 0 0 0 Tullyfergus Bridge 0 0 0 134 (134) 0 0 0 0 Sub-Total 1,045 0 (57) 988 557 988 3,661 2,110 (1,182) 4,589 1,710 300 518 2,528 3,780 300 104 Page 68 of 102
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PERTH AND KINROSS COUNCIL COMPOSITE CAPITAL PROGRAMME SUMMARY OF CAPITAL RESOURCES AND EXPENDITURE 2022/23 to 2027/28 APPENDIX II Revised Approved Proposed Revised Actual Projected Revised Approved Proposed Revised Revised Approved Proposed Revised Revised Approved Proposed Budget Budget Budget Budget to Outturn Budget Budget Budget Budget Budget Budget Budget Budget Budget Budget Budget Adjustment Adjustment 28-Feb-23 Adjustment Adjustment Adjustment Adjustment Adjustment Adjustment Report 3 01-Mar-23 Report 4 Report 4 Report 3 01-Mar-23 Report 4 Report 4 Report 3 01-Mar-23 Report 4 Report 4 Report 3 01-Mar-23 Report 4 2022/23 2022/23 2022/23 2022/23 2022/23 2022/23 2023/24 2023/24 2023/24 2023/24 2024/25 2024/25 2024/25 2024/25 2025/26 2025/26 2025/26 (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) Improvement Schemes A9/A85 Road Junction Improvements 359 359 40 359 0 0 0 0 0 Cross Tay Link Road (CTLR) 51,802 (14,493) 37,309 28,264 37,309 57,543 12,638 70,181 24,358 1,855 26,213 0 Scottish Government Grant (20,000) (20,000) (10,000) (20,000) (15,000) (15,000) 0 0 0 A977 Upgrades 20 (20) 0 0 170 350 20 540 0 0 0 Brioch Road, Crieff - Road Realignment & Safety Measures 0 0 0 31 31 0 0 0 Sub-Total 32,181 0 (14,513) 17,668 18,304 17,668 42,744 350 12,658 55,752 24,358 0 1,855 26,213 0 0 0 Rural Flood Protection Schemes Almondbank Flood Protection Scheme 39 54 93 73 93 0 0 0 0 0 Revenue Contribution 0 (54) (54) (54) 0 0 0 0 0 Perth Flood Protection Scheme (Pump Replacement) 25 (25) 0 28 0 136 (136) 0 0 0 0 Perth Flood Protection Scheme (South Inch Culvert Reinstatement) 0 35 35 35 0 351 351 0 0 0 Comrie Flood Protection Scheme 2,096 (249) 1,847 1,636 1,847 7,198 197 7,395 16,789 52 16,841 0 Milnathort Flood Protection Scheme 112 112 16 112 52 52 1,590 1,590 0 South Kinross Flood Protection Scheme 146 (31) 115 47 115 309 (69) 240 1,118 50 1,168 1,737 50 Scone Flood Protection Scheme 51 (46) 5 5 257 (167) 90 416 (340) 76 48 553 Coastal Change Adaptation 0 0 0 100 100 0 0 0 Sub-Total 2,469 0 (316) 2,153 1,800 2,153 8,052 0 176 8,228 19,913 0 (238) 19,675 1,785 0 603 Perth & Kinross Place-making Mill Street Environmental Improvements 127 (127) 0 0 0 127 127 0 0 0 Perth, Place, People 0 0 0 3,629 (30) 3,599 0 0 0 Perth City Centre Golden Route (Rail Station) 0 15 15 15 0 15 15 0 0 0 City Greening 31 (31) 0 0 0 31 31 0 0 0 Perth & Kinross Lighting Action Plan 1,075 (200) 875 635 875 1,047 (1,047) 1,200 1,200 630 1,047 (1,000) 677 0 Sub-Total 1,233 0 (343) 890 635 890 4,676 (1,047) 1,343 4,972 630 1,047 (1,000) 677 0 0 0 Other Planning Projects Creative Exchange (former St. John's Primary School) 53 53 53 0 0 0 0 0 Town Centre - Regeneration & Economic Improvements 26 26 26 0 0 0 0 0 Scottish Government Grant (26) (40) (66) (66) 0 0 0 0 0 TCF Revenue Contribution 0 (23) (23) (23) 0 0 0 0 0 Local Full Fibre Network 198 (40) 158 55 158 0 0 0 0 0 Third Party Contribution - TCF 0 40 40 40 0 0 0 0 0 Third Party Contribution - Tay Cities Deal (198) (198) (250) (198) 0 0 0 0 0 Low Carbon Transport & Active Travel Hub - Broxden EV Chargers 864 (161) 703 709 703 130 161 291 0 0 0 Third Party Contribution - ERDF (327) 61 (266) (266) (49) (61) (110) 0 0 0 Third Party Contribution - Tay Cities Deal (536) 100 (436) (182) (436) (81) (100) (181) 0 0 0 Perth Eco-Innovation Park at Perth West 6,889 (6,889) 0 0 10,661 (7,661) 3,000 3,536 17,264 20,800 0 9,017 Third Party Contributions - Tay Cities Deal 0 0 0 0 (990) (990) (990) (9) (999) (1,899) 1,349 Other Third Party Contributions 0 0 0 0 0 0 0 (2,500) 2,500 Capital Receipts - Ring Fenced Land Disposals 0 0 0 0 0 0 0 0 Coupar Angus - Strathmore Community Hub 0 63 63 63 0 0 0 0 0 Nature Restoration 206 206 17 206 0 0 0 0 0 Sub-Total 7,149 (6,889) 0 260 349 260 10,661 (8,651) 0 2,010 2,546 17,255 0 19,801 (4,399) 12,866 0 City Centre Developments - Cultural Attractions Perth Museum 9,229 1,714 10,943 9,090 10,943 3,781 (1,714) 2,067 0 0 0 Perth Art Gallery 112 112 112 3,204 3,204 0 0 0 Collections Centre 24 (24) 0 0 6,400 (6,400) 0 0 0 0 PH2O 500 (500) 0 0 3,500 (3,500) 0 26,000 4,000 30,000 25,000 Sub-Total 9,865 (524) 1,714 11,055 9,090 11,055 16,885 (9,900) (1,714) 5,271 26,000 4,000 0 30,000 25,000 0 0 Community Planning Letham Community Wellbeing Hub 2,552 2,552 1,767 2,552 1,317 1,317 0 0 0 Scottish Government Grant (Regeneration Fund) (524) (524) (524) (524) 0 0 0 0 0 Third Party Contribution (Letham4All) 0 0 0 (519) (519) 0 0 0 Revenue Contribution (Place Based Development Grant) (735) (735) (735) (735) 0 0 0 0 0 Sub-Total 1,293 0 0 1,293 508 1,293 798 0 0 798 0 0 0 0 0 0 0 Page 69 of 102
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PERTH AND KINROSS COUNCIL COMPOSITE CAPITAL PROGRAMME SUMMARY OF CAPITAL RESOURCES AND EXPENDITURE 2022/23 to 2027/28 APPENDIX II Revised Approved Proposed Revised Actual Projected Revised Approved Proposed Revised Revised Approved Proposed Revised Revised Approved Proposed Budget Budget Budget Budget to Outturn Budget Budget Budget Budget Budget Budget Budget Budget Budget Budget Budget Adjustment Adjustment 28-Feb-23 Adjustment Adjustment Adjustment Adjustment Adjustment Adjustment Report 3 01-Mar-23 Report 4 Report 4 Report 3 01-Mar-23 Report 4 Report 4 Report 3 01-Mar-23 Report 4 Report 4 Report 3 01-Mar-23 Report 4 2022/23 2022/23 2022/23 2022/23 2022/23 2022/23 2023/24 2023/24 2023/24 2023/24 2024/25 2024/25 2024/25 2024/25 2025/26 2025/26 2025/26 (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) Community Greenspace Play Areas - Improvements Implementation Strategy 92 92 17 92 897 (400) 497 587 400 987 878 Third Party Contribution (47) (47) (47) 0 0 0 0 0 Revenue Contribution (Developer Contribution Reserve) (2) (2) (2) 0 0 0 0 0 3G Pitch, Blairgowrie 38 38 2 38 100 (100) 0 0 100 100 0 Settlement/Neighbourhood Parks 25 25 25 0 0 0 0 0 Countryside Sites 23 23 1 23 139 (139) 0 0 139 139 0 Community Greenspace Sites 0 0 0 552 (552) 0 532 122 654 532 150 Community Greenspace Bridges 33 5 38 14 38 31 23 54 0 0 0 Core Path Implementation 48 48 28 48 0 0 0 0 0 Third Party Contribution (60) (60) (60) 0 0 0 0 0 Alyth Environmental Improvements 0 0 0 0 0 0 0 0 Premier Parks 39 39 37 39 14 14 0 0 0 Auchterarder Public Park 263 61 324 192 324 0 0 0 0 0 Third Party Contribution (140) (61) (201) (201) 0 0 0 0 0 The Knock 24 (15) 9 7 9 0 0 0 0 0 Kinnoull Hill 41 (33) 8 2 8 0 0 0 0 0 Cemetery Extensions 25 25 5 25 444 444 150 150 100 Sub-Total 402 0 (43) 359 305 359 2,177 0 (1,168) 1,009 1,269 0 761 2,030 1,510 0 150 Waste Strategy Recycling Improvement Fund 281 77 358 45 358 2,081 282 2,363 0 0 0 Scottish Government Grant (281) (77) (358) (45) (358) (2,081) (282) (2,363) 0 0 0 Sub-Total 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Support Services PC Replacement & IT Upgrades Hardware 10 12 22 23 22 17 (2) 15 17 (2) 15 17 (2) Licenses 35 163 198 63 198 120 (32) 88 120 (8) 112 120 (25) Sub-Total 45 0 175 220 86 220 137 0 (34) 103 137 0 (10) 127 137 0 (27) Commercial Property Investment Programme North Muirton Industrial Estate - Site Servicing & Provision of Units 105 (87) 18 18 0 40 40 0 0 0 Broxden Business Park - Additional Infrastructure 0 17 17 17 0 0 0 0 0 Western Edge, Kinross - Site Servicing 10 7 17 2 17 0 0 0 0 0 Additional Infrastructure Investment - Broxden 46 46 46 0 0 0 0 0 Broxden Drainage Mitigation Works 308 308 59 308 0 0 0 0 0 Third Party Contribution (Scottish Water) (239) (239) (239) 0 0 0 0 0 Ruthvenfield Business Centre 510 (209) 301 73 301 1,145 209 1,354 0 0 0 Third Party Contribution (115) (115) (115) 0 0 0 0 0 North Muirton Drainage 0 47 47 47 0 0 0 0 0 North Muirton Industrial Estate Expansion Land - Servicing 0 0 13 0 0 0 0 0 0 Sub-Total 625 0 (225) 400 147 400 1,145 0 249 1,394 0 0 0 0 0 0 0 Prudential Borrowing Projects Wheeled Bin Replacement Programme - Domestic Bins 265 265 257 265 200 200 200 200 200 Wheeled Bin Replacement Programme - Commercial Bins 39 39 39 20 20 20 20 20 Recycling Containers, Oil Banks & Battery Banks Replacement Prog 111 (57) 54 28 54 65 57 122 65 65 65 Capital Receipts - Disposals (4) (4) (4) (4) 0 0 0 0 0 Litter Bins 25 25 25 25 25 25 50 50 50 Smart Cities - Smart Waste 305 (133) 172 150 172 0 133 133 0 0 0 Third Party Contribution (ERDF) (118) 51 (67) (67) 0 (51) (51) 0 0 0 Vehicle Replacement Programme 1,454 (212) 1,242 787 1,242 1,545 212 1,757 3,300 3,300 3,300 Capital Receipts - Vehicle Disposals (190) 72 (118) (107) (118) (200) (72) (272) (377) (377) (377) Crematorium - Abatement Works 9 9 4 9 0 0 0 0 0 Street Lighting Renewal - LED & Column Replacement 770 (120) 650 467 650 944 (177) 767 954 (66) 888 945 (120) LED Traffic Signal Replacement 146 146 97 146 0 0 0 0 0 Almondbank Flood Protection Scheme 4 4 4 4 0 0 0 0 0 Land Purchase & Development (Hotel Development) 1,900 (1,900) 0 0 0 0 0 950 950 0 950 Technology & Innovation Incubator Units 0 0 0 0 0 0 0 0 Sub Total 4,716 0 (2,299) 2,417 1,708 2,417 2,599 0 102 2,701 4,212 0 884 5,096 4,203 0 830 Housing Projects Gypsy Travellers Site Improvement Works 207 207 8 207 0 0 0 0 0 Additional Gypsy Traveller Site Improvement Works 225 225 9 225 0 0 0 0 0 Gypsy Traveller Site Community Improvement Works 33 33 33 0 0 0 0 0 New Gypsy Traveller Site 0 0 0 0 2,000 2,000 0 0 0 Sub Total 465 0 0 465 17 465 0 2,000 0 2,000 0 0 0 0 0 0 0 Page 70 of 102
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PERTH AND KINROSS COUNCIL COMPOSITE CAPITAL PROGRAMME SUMMARY OF CAPITAL RESOURCES AND EXPENDITURE 2022/23 to 2027/28 APPENDIX II Revised Approved Proposed Revised Actual Projected Revised Approved Proposed Revised Revised Approved Proposed Revised Revised Approved Proposed Budget Budget Budget Budget to Outturn Budget Budget Budget Budget Budget Budget Budget Budget Budget Budget Budget Adjustment Adjustment 28-Feb-23 Adjustment Adjustment Adjustment Adjustment Adjustment Adjustment Report 3 01-Mar-23 Report 4 Report 4 Report 3 01-Mar-23 Report 4 Report 4 Report 3 01-Mar-23 Report 4 Report 4 Report 3 01-Mar-23 Report 4 2022/23 2022/23 2022/23 2022/23 2022/23 2022/23 2023/24 2023/24 2023/24 2023/24 2024/25 2024/25 2024/25 2024/25 2025/26 2025/26 2025/26 (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) TOTAL: COMMUNITIES 75,268 (7,413) (16,302) 51,553 45,101 51,553 105,103 (13,138) 9,904 101,869 91,413 22,602 2,697 116,712 42,419 13,166 2,006 Page 71 of 102
Page 72
PERTH AND KINROSS COUNCIL COMPOSITE CAPITAL PROGRAMME SUMMARY OF CAPITAL RESOURCES AND EXPENDITURE 2022/23 to 2027/28 APPENDIX II Revised Approved Proposed Revised Actual Projected Revised Approved Proposed Revised Revised Approved Proposed Revised Revised Approved Proposed Budget Budget Budget Budget to Outturn Budget Budget Budget Budget Budget Budget Budget Budget Budget Budget Budget Adjustment Adjustment 28-Feb-23 Adjustment Adjustment Adjustment Adjustment Adjustment Adjustment Report 3 01-Mar-23 Report 4 Report 4 Report 3 01-Mar-23 Report 4 Report 4 Report 3 01-Mar-23 Report 4 Report 4 Report 3 01-Mar-23 Report 4 2022/23 2022/23 2022/23 2022/23 2022/23 2022/23 2023/24 2023/24 2023/24 2023/24 2024/25 2024/25 2024/25 2024/25 2025/26 2025/26 2025/26 (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) Health & Social Care Occupational Therapy Equipment 250 250 250 250 250 250 250 250 250 Technology Enabled Telecare 1,000 (550) 450 365 450 1,000 550 1,550 1,000 1,000 1,000 Moving & Handling Office Refurbishment 29 (29) 0 0 0 29 29 0 0 0 Software Licences 53 (10) 43 43 53 10 63 53 53 53 Developing Supported Tenancies 0 0 0 229 229 0 0 0 TOTAL: HEALTH & SOCIAL CARE 1,332 0 (589) 743 615 743 1,532 0 589 2,121 1,303 0 0 1,303 1,303 0 0 CORPORATE AND DEMOCRATIC SERVICES Property Services DDA Adaptation & Alteration Works Programme 174 174 63 174 400 400 200 200 200 Property Compliance Works Programme 1,626 1,626 1,011 1,626 429 429 650 650 650 Capital Improvement Projects Programme 1,987 (50) 1,937 928 1,937 1,800 50 1,850 1,800 1,800 1,800 Pitlochry High School - Upgrade Programme 635 (170) 465 328 465 90 170 260 0 0 0 Community School of Auchterarder - Structural Improvements 736 736 670 736 0 0 0 0 0 CO2 Monitors for Schools Programme 81 81 81 81 0 0 0 0 0 Energy Efficiency Works - Various Properties 0 0 0 99 99 0 0 0 Revenue Contribution (Salix Reserve) 0 0 0 (99) (99) 0 0 0 Decarbonisation - Prudential Borrowing Programme (PB) 0 0 0 0 2,000 2,000 0 0 0 Energy Conservation & Carbon Reduction Programme (PB) 168 10 178 12 178 150 (10) 140 150 150 150 Information Systems & Technology ICT Infrastructure & Replacement and Upgrade Programme 2,417 (362) 2,055 668 2,055 2,304 362 2,666 4,928 4,928 3,498 Data & Analytics 415 415 136 415 875 875 675 675 646 Supporting Digital 700 700 67 700 1,306 1,306 714 714 737 Software Licences (Revenues & Benefits) 52 52 52 52 50 50 51 51 51 School Audio-Visual (AV) Equipment Replacement Programme 1,400 (100) 1,300 919 1,300 526 100 626 0 0 0 Mosaic - Swift Social Work System Replacement 404 8 412 303 412 1,282 442 (151) 1,573 0 371 371 0 21 Revenue Contribution 0 0 0 0 0 0 (124) (124) 0 (125) Customer Service Blueprint 0 0 0 0 0 0 0 0 TOTAL: CORPORATE AND DEMOCRATIC SERVICES 10,795 0 (664) 10,131 5,238 10,131 9,212 2,442 521 12,175 9,168 0 247 9,415 7,732 0 (104) TOTAL COMPOSITE NET EXPENDITURE 117,566 (17,081) (12,525) 87,960 67,104 87,960 172,052 1,137 4,844 178,033 158,333 22,752 10,499 191,584 87,354 22,984 (2,013) (NET OF GRANTS, REVENUE AND 3RD PARTY CONTRIBUTIONS, AND RING FENCED RECEIPTS) CAPITAL RECEIPTS General Capital Grant - Scottish Government (14,739) (14,739) (15,458) (14,739) (13,128) (9,032) 13 (22,147) (16,371) 2,524 (13,847) (13,007) 368 Developer Contributions (1,549) (1,549) (1,549) (2,100) (2,100) (2,300) (2,300) (2,367) General Fund - Capital Receipts/Disposal (46) 38 (8) (4) (8) (934) (38) (972) (250) 0 (250) (250) 0 Commercial Property - Capital Receipts/Disposal (343) 342 (1) 1 (1) (953) 710 (243) (625) (1,054) (1,679) (308) 0 Total: Capital Receipts (16,677) 0 380 (16,297) (15,461) (16,297) (17,115) (9,032) 685 (25,462) (19,546) 2,524 (1,054) (18,076) (15,932) 368 0 Annual Composite Borrowing Requirement 100,889 (17,081) (12,145) 71,663 51,643 71,663 154,937 (7,895) 5,529 152,571 138,787 25,276 9,445 173,508 71,422 23,352 (2,013) CAPITAL RECEIPTS BROUGHT FORWARD (2,556) 0 (2,556) (2,556) (2,556) (2,274) 117 (2,157) (2,082) 1,076 (1,006) (2,707) 22 CAPITAL RECEIPTS CARRIED FORWARD 2,274 (117) 2,157 2,408 2,157 2,082 (1,076) 1,006 2,707 (22) 2,685 3,015 (22) TOTAL NET COMPOSITE BORROWING REQUIREMENT100,607 (17,081) (12,262) 71,264 51,495 71,264 154,745 (7,895) 4,570 151,420 139,412 25,276 10,499 175,187 71,730 23,352 (2,013) Page 72 of 102
Page 73
PERTH AND KINROSS COUNCIL COMPOSITE CAPITAL PROGRAMME SUMMARY OF CAPITAL RESOURCES AND EXPENDITURE 2022/23 to 2027/28 APPENDIX II EDUCATION AND CHILDREN'S SERVICES MIS - Procurement & Integration MIS - SEEMIS Licensing Blairgowrie Recreation Centre - Replacement Schools Modernisation Programme Investment in the Learning Estate Free School Meal Expansion Programme Methven Primary School Refurbishment Breadalbane Academy, Aberfeldy - 3G Pitch Third Party Contribution (The Scottish Football Association) Kirkmichael Primary School Upgrades Capital Receipt (ring-fenced) Early Learning & Childcare - Letham Primary School Upgrade Project - Rattray Primary School Upgrade Project North/West Perth - New Primary School Riverside Primary New School Technology Upgrades Perth Academy - Refurbishment Perth Grammar School - Upgrade Programme Phase 3 Perth High School - Internal Services & Refurbishment Perth High School - New School Investment Harris Academy/Invergowrie - Extension TOTAL: EDUCATION AND CHILDREN'S SERVICES COMMUNITIES Traffic & Road Safety Road Safety Initiatives (20mph Zones etc..) Additional Road Safety - Pedestrian Crossings Schools Road Safety Measures Scottish Government Grant - CWSS 20mph Signage Programme - Schools 20mph Signage Programme Cycling Walking & Safer Routes (CWSR) Scottish Government Grant - CWSR Third Party Contribution (TACTRAN) Car Parking Investment Car Parking Investment - Pitlochry Strathmore Cycle Network Sub-Total Asset Management - Roads & Lighting Structural Maintenance Third Party Contribution (Forestry Commission Timber Routes) Traffic Signal Renewals - Upgrading Third Party Contributions Footways Third Party Contributions Investment in Local Footpaths Road Safety Barriers Sub-Total Asset Management - Bridges Bridge Refurbishment Programme Dalhenzean Culvert Dunkeld Golf Course Vehicular Bridge Parapets Programme - Assess & Upgrade Old Perth Bridge - Strengthening Perth Queens Bridge - Strengthening Garry Viaduct Culteuchar Culvert Glendevon Bridge Tullyfergus Bridge Sub-Total Revised Revised Approved Proposed Revised Revised Approved Proposed Revised Revised Budget Budget Budget Budget Budget Budget Budget Budget Budget Budget Adjustment Adjustment Adjustment Adjustment Report 4 Report 3 01-Mar-23 Report 4 Report 4 Report 3 01-Mar-23 Report 4 Report 4 Report 4 2025/26 2026/27 2026/27 2026/27 2026/27 2027/28 2027/28 2027/28 2027/28 TOTAL (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) 0 0 0 0 0 57 0 0 150 (150) 0 0 150 (150) 0 745 4,003 0 0 0 0 34,203 8,550 6,650 2,000 8,650 6,823 6,823 37,015 0 0 0 0 0 3,348 0 0 0 0 0 561 0 0 0 0 0 29 0 0 0 0 0 (29) 0 0 0 0 0 98 0 0 0 0 0 (100) 0 0 0 0 0 38 0 0 0 0 0 19 0 0 0 0 0 1,815 15,000 400 400 0 0 24,000 0 0 0 0 0 14,653 0 0 0 0 0 1,431 2,150 2,150 2,150 0 0 9,980 1,500 504 504 0 0 5,565 0 0 0 0 0 21 10,600 7,800 (4,200) 3,600 0 0 76,836 0 0 0 0 0 5,200 41,803 17,504 150 (2,350) 15,304 6,823 150 (150) 6,823 215,485 362 200 162 362 200 161 361 1,447 175 0 0 0 0 525 0 0 0 0 0 652 0 0 0 0 0 (106) 0 0 0 0 0 200 0 0 0 0 0 76 200 200 200 200 200 2,769 (200) (200) (200) (200) (200) (2,649) 0 0 0 0 0 (120) 0 0 0 0 0 322 0 0 0 0 0 150 84 0 0 0 0 84 621 200 0 162 362 200 0 161 361 3,350 9,593 9,800 9,800 7,500 7,500 61,572 0 0 0 0 0 (1,316) 0 0 0 0 0 199 0 0 0 0 0 (3) 435 435 435 435 435 2,699 0 0 0 0 0 0 100 0 100 100 0 0 200 0 0 0 0 0 33 10,128 10,235 0 100 10,335 7,935 0 0 7,935 63,384 1,445 1,746 1,746 1,406 1,406 10,924 0 0 0 0 264 264 307 0 0 0 0 219 219 248 0 0 0 0 0 29 2,369 0 0 0 0 2,569 70 2,153 2,153 0 0 2,618 300 0 1,900 1,900 0 1,790 1,790 4,400 0 0 0 0 0 437 0 0 0 0 0 235 0 0 0 0 134 134 134 4,184 3,899 1,900 0 5,799 1,406 1,790 617 3,813 21,901 Page 73 of 102
Page 74
PERTH AND KINROSS COUNCIL COMPOSITE CAPITAL PROGRAMME SUMMARY OF CAPITAL RESOURCES AND EXPENDITURE 2022/23 to 2027/28 APPENDIX II Improvement Schemes A9/A85 Road Junction Improvements Cross Tay Link Road (CTLR) Scottish Government Grant A977 Upgrades Brioch Road, Crieff - Road Realignment & Safety Measures Sub-Total Rural Flood Protection Schemes Almondbank Flood Protection Scheme Revenue Contribution Perth Flood Protection Scheme (Pump Replacement) Perth Flood Protection Scheme (South Inch Culvert Reinstatement) Comrie Flood Protection Scheme Milnathort Flood Protection Scheme South Kinross Flood Protection Scheme Scone Flood Protection Scheme Coastal Change Adaptation Sub-Total Perth & Kinross Place-making Mill Street Environmental Improvements Perth, Place, People Perth City Centre Golden Route (Rail Station) City Greening Perth & Kinross Lighting Action Plan Sub-Total Other Planning Projects Creative Exchange (former St. John's Primary School) Town Centre - Regeneration & Economic Improvements Scottish Government Grant TCF Revenue Contribution Local Full Fibre Network Third Party Contribution - TCF Third Party Contribution - Tay Cities Deal Low Carbon Transport & Active Travel Hub - Broxden EV Chargers Third Party Contribution - ERDF Third Party Contribution - Tay Cities Deal Perth Eco-Innovation Park at Perth West Third Party Contributions - Tay Cities Deal Other Third Party Contributions Capital Receipts - Ring Fenced Land Disposals Coupar Angus - Strathmore Community Hub Nature Restoration Sub-Total City Centre Developments - Cultural Attractions Perth Museum Perth Art Gallery Collections Centre PH2O Sub-Total Community Planning Letham Community Wellbeing Hub Scottish Government Grant (Regeneration Fund) Third Party Contribution (Letham4All) Revenue Contribution (Place Based Development Grant) Sub-Total Revised Revised Approved Proposed Revised Revised Approved Proposed Revised Revised Budget Budget Budget Budget Budget Budget Budget Budget Budget Budget Adjustment Adjustment Adjustment Adjustment Report 4 Report 3 01-Mar-23 Report 4 Report 4 Report 3 01-Mar-23 Report 4 Report 4 Report 4 2025/26 2026/27 2026/27 2026/27 2026/27 2027/28 2027/28 2027/28 2027/28 TOTAL (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) 0 0 0 0 0 359 0 0 0 0 0 133,703 0 0 0 0 0 (35,000) 0 0 0 0 0 540 0 0 0 0 0 31 0 0 0 0 0 0 0 0 0 99,633 0 0 0 0 0 93 0 0 0 0 0 (54) 0 0 0 0 0 0 0 0 0 0 0 386 0 0 0 0 0 26,083 0 0 0 0 0 1,754 1,787 0 0 0 0 3,310 601 0 0 0 0 772 0 0 0 0 0 100 2,388 0 0 0 0 0 0 0 0 32,444 0 0 0 0 0 127 0 0 0 0 0 3,599 0 0 0 0 0 30 0 0 0 0 0 31 0 0 0 0 0 2,752 0 0 0 0 0 0 0 0 0 6,539 0 0 0 0 0 53 0 0 0 0 0 26 0 0 0 0 0 (66) 0 0 0 0 0 (23) 0 0 0 0 0 158 0 0 0 0 0 40 0 0 0 0 0 (198) 0 0 0 0 0 994 0 0 0 0 0 (376) 0 0 0 0 0 (617) 9,017 0 0 0 0 32,817 (550) (550) 45 (505) (505) (1,451) (1,956) (5,000) 0 (1,000) (1,000) (2,000) (1,000) (2,000) (3,000) (5,000) 0 (550) (550) (550) (175) (725) (1,275) 0 0 0 0 0 63 0 0 0 0 0 206 8,467 (2,100) (955) 0 (3,055) (2,055) (3,626) 0 (5,681) 21,802 0 0 0 0 0 13,010 0 0 0 0 0 3,316 0 0 0 0 0 0 25,000 20,000 20,000 15,000 15,000 90,000 25,000 20,000 0 0 20,000 15,000 0 0 15,000 106,326 0 0 0 0 0 3,869 0 0 0 0 0 (524) 0 0 0 0 0 (519) 0 0 0 0 0 (735) 0 0 0 0 0 0 0 0 0 2,091 Page 74 of 102
Page 75
PERTH AND KINROSS COUNCIL COMPOSITE CAPITAL PROGRAMME SUMMARY OF CAPITAL RESOURCES AND EXPENDITURE 2022/23 to 2027/28 APPENDIX II Community Greenspace Play Areas - Improvements Implementation Strategy Third Party Contribution Revenue Contribution (Developer Contribution Reserve) 3G Pitch, Blairgowrie Settlement/Neighbourhood Parks Countryside Sites Community Greenspace Sites Community Greenspace Bridges Core Path Implementation Third Party Contribution Alyth Environmental Improvements Premier Parks Auchterarder Public Park Third Party Contribution The Knock Kinnoull Hill Cemetery Extensions Sub-Total Waste Strategy Recycling Improvement Fund Scottish Government Grant Sub-Total Support Services PC Replacement & IT Upgrades Hardware Licenses Sub-Total Commercial Property Investment Programme North Muirton Industrial Estate - Site Servicing & Provision of Units Broxden Business Park - Additional Infrastructure Western Edge, Kinross - Site Servicing Additional Infrastructure Investment - Broxden Broxden Drainage Mitigation Works Third Party Contribution (Scottish Water) Ruthvenfield Business Centre Third Party Contribution North Muirton Drainage North Muirton Industrial Estate Expansion Land - Servicing Sub-Total Prudential Borrowing Projects Wheeled Bin Replacement Programme - Domestic Bins Wheeled Bin Replacement Programme - Commercial Bins Recycling Containers, Oil Banks & Battery Banks Replacement Prog Capital Receipts - Disposals Litter Bins Smart Cities - Smart Waste Third Party Contribution (ERDF) Vehicle Replacement Programme Capital Receipts - Vehicle Disposals Crematorium - Abatement Works Street Lighting Renewal - LED & Column Replacement LED Traffic Signal Replacement Almondbank Flood Protection Scheme Land Purchase & Development (Hotel Development) Technology & Innovation Incubator Units Sub Total Housing Projects Gypsy Travellers Site Improvement Works Additional Gypsy Traveller Site Improvement Works Gypsy Traveller Site Community Improvement Works New Gypsy Traveller Site Sub Total Revised Revised Approved Proposed Revised Revised Approved Proposed Revised Revised Budget Budget Budget Budget Budget Budget Budget Budget Budget Budget Adjustment Adjustment Adjustment Adjustment Report 4 Report 3 01-Mar-23 Report 4 Report 4 Report 3 01-Mar-23 Report 4 Report 4 Report 4 2025/26 2026/27 2026/27 2026/27 2026/27 2027/28 2027/28 2027/28 2027/28 TOTAL (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) 878 150 150 150 150 2,754 0 0 0 0 0 (47) 0 0 0 0 0 (2) 0 0 0 0 0 138 0 0 0 0 0 25 0 0 0 0 0 162 682 532 150 682 528 150 678 2,696 0 0 0 0 0 92 0 0 0 0 0 48 0 0 0 0 0 (60) 0 0 0 0 0 0 0 0 0 0 0 53 0 0 0 0 0 324 0 0 0 0 0 (201) 0 0 0 0 0 9 0 0 0 0 0 8 100 100 100 100 100 919 1,660 782 0 150 932 778 0 150 928 6,918 0 0 0 0 0 2,721 0 0 0 0 0 (2,721) 0 0 0 0 0 0 0 0 0 0 15 17 (3) 14 17 (3) 14 95 95 120 (49) 71 120 (49) 71 635 110 137 0 (52) 85 137 0 (52) 85 730 0 0 0 0 0 58 0 0 0 0 0 17 0 0 0 0 0 17 0 0 0 0 0 46 0 0 0 0 0 308 0 0 0 0 0 (239) 0 0 0 0 0 1,655 0 0 0 0 0 (115) 0 0 0 0 0 47 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1,794 200 200 200 200 200 1,265 20 20 20 20 20 139 65 65 65 65 65 436 0 0 0 0 0 (4) 50 50 50 50 50 250 0 0 0 0 0 305 0 0 0 0 0 (118) 3,300 3,300 3,300 3,000 3,000 15,899 (377) (377) (377) (347) (347) (1,868) 0 0 0 0 0 9 825 959 (418) 541 932 (340) 592 4,263 0 0 0 0 0 146 0 0 0 0 0 4 950 0 0 0 0 1,900 0 0 0 0 0 0 5,033 4,217 0 (418) 3,799 3,920 0 (340) 3,580 22,626 0 0 0 0 0 207 0 0 0 0 0 225 0 0 0 0 0 33 0 0 0 0 0 2,000 0 0 0 0 0 0 0 0 0 2,465 Page 75 of 102
Page 76
PERTH AND KINROSS COUNCIL COMPOSITE CAPITAL PROGRAMME SUMMARY OF CAPITAL RESOURCES AND EXPENDITURE 2022/23 to 2027/28 APPENDIX II TOTAL: COMMUNITIES Revised Revised Approved Proposed Revised Revised Approved Proposed Revised Revised Budget Budget Budget Budget Budget Budget Budget Budget Budget Budget Adjustment Adjustment Adjustment Adjustment Report 4 Report 3 01-Mar-23 Report 4 Report 4 Report 3 01-Mar-23 Report 4 Report 4 Report 4 2025/26 2026/27 2026/27 2026/27 2026/27 2027/28 2027/28 2027/28 2027/28 TOTAL (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) 57,591 37,370 945 (58) 38,257 27,321 (1,836) 536 26,021 392,003 Page 76 of 102
Page 77
PERTH AND KINROSS COUNCIL COMPOSITE CAPITAL PROGRAMME SUMMARY OF CAPITAL RESOURCES AND EXPENDITURE 2022/23 to 2027/28 APPENDIX II Health & Social Care Occupational Therapy Equipment Technology Enabled Telecare Moving & Handling Office Refurbishment Software Licences Developing Supported Tenancies TOTAL: HEALTH & SOCIAL CARE CORPORATE AND DEMOCRATIC SERVICES Property Services DDA Adaptation & Alteration Works Programme Property Compliance Works Programme Capital Improvement Projects Programme Pitlochry High School - Upgrade Programme Community School of Auchterarder - Structural Improvements CO2 Monitors for Schools Programme Energy Efficiency Works - Various Properties Revenue Contribution (Salix Reserve) Decarbonisation - Prudential Borrowing Programme (PB) Energy Conservation & Carbon Reduction Programme (PB) Information Systems & Technology ICT Infrastructure & Replacement and Upgrade Programme Data & Analytics Supporting Digital Software Licences (Revenues & Benefits) School Audio-Visual (AV) Equipment Replacement Programme Mosaic - Swift Social Work System Replacement Revenue Contribution Customer Service Blueprint TOTAL: CORPORATE AND DEMOCRATIC SERVICES TOTAL COMPOSITE NET EXPENDITURE (NET OF GRANTS, REVENUE AND 3RD PARTY CONTRIBUTIONS, AND RING FENCED CAPITAL RECEIPTS General Capital Grant - Scottish Government Developer Contributions General Fund - Capital Receipts/Disposal Commercial Property - Capital Receipts/Disposal Total: Capital Receipts Annual Composite Borrowing Requirement CAPITAL RECEIPTS BROUGHT FORWARD CAPITAL RECEIPTS CARRIED FORWARD TOTAL NET COMPOSITE BORROWING REQUIREMENT Revised Revised Approved Proposed Revised Revised Approved Proposed Revised Revised Budget Budget Budget Budget Budget Budget Budget Budget Budget Budget Adjustment Adjustment Adjustment Adjustment Report 4 Report 3 01-Mar-23 Report 4 Report 4 Report 3 01-Mar-23 Report 4 Report 4 Report 4 2025/26 2026/27 2026/27 2026/27 2026/27 2027/28 2027/28 2027/28 2027/28 TOTAL (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) 250 250 250 250 250 1,500 1,000 1,000 1,000 1,000 1,000 6,000 0 0 0 0 0 29 53 53 53 69 69 334 0 0 0 0 0 229 1,303 1,303 0 0 1,303 1,319 0 0 1,319 8,092 200 200 200 200 200 1,374 650 650 650 650 650 4,655 1,800 1,800 1,800 894 894 10,081 0 0 0 0 0 725 0 0 0 0 0 736 0 0 0 0 0 81 0 0 0 0 0 99 0 0 0 0 0 (99) 0 0 0 0 0 2,000 150 150 150 150 150 918 3,498 2,633 2,633 2,793 2,793 18,573 646 668 668 691 691 3,970 737 760 760 785 785 5,002 51 51 51 51 51 306 0 0 0 0 0 1,926 21 0 0 0 0 2,377 (125) 0 0 0 0 (249) 0 0 0 0 0 0 7,628 6,912 0 0 6,912 6,214 0 0 6,214 52,475 108,325 63,089 1,095 (2,408) 61,776 41,677 (1,686) 386 40,377 668,055 (12,639) (12,265) 115 (12,150) (12,265) 115 (12,150) (87,672) (2,367) (2,600) (2,600) (2,600) (2,600) (13,516) (250) (250) 0 (250) (250) 0 (250) (1,980) (308) 0 0 0 0 0 0 (2,231) (15,564) (15,115) 115 0 (15,000) (15,115) 115 0 (15,000) (105,399) 92,761 47,974 1,210 (2,408) 46,776 26,562 (1,571) 386 25,377 562,656 (2,685) (3,015) 22 (2,993) (3,015) 22 (2,993) (2,556) 2,993 3,015 (22) 2,993 3,015 (22) 2,993 2,993 93,069 47,974 1,210 (2,408) 46,776 26,562 (1,571) 386 25,377 563,093 Page 77 of 102
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APPENDIX III Approved Approved Proposed Revised Actual Projected Approved Approved Proposed Revised Approved Approved Proposed Revised Approved Approved Proposed Revised Approved Approved Proposed Revised Revised Budget Budget Budget Budget to Outturn Budget Budget Budget Budget Budget Budget Budget Budget Budget Budget Budget Budget Budget Budget Budget Budget Budget 01-Feb-23 Adjustment Adjustment 28-Feb-23 01-Feb-23 Adjustment Adjustment 01-Feb-23 Adjustment Adjustment 01-Feb-23 Adjustment Adjustment 01-Feb-23 Adjustment Adjustment 25-Jan-23 Report 4 Report 4 Report 4 25-Jan-23 Report 4 Report 4 25-Jan-23 Report 4 Report 4 25-Jan-23 Report 4 Report 4 25-Jan-23 Report 4 Report 4 Report 4 2022/23 2022/23 2022/23 2022/23 2022/23 2022/23 2023/24 2023/24 2023/24 2023/24 2024/25 2024/25 2024/25 2024/25 2025/26 2025/26 2025/26 2025/26 2026/27 2026/27 2026/27 2026/27 TOTAL £'000 (£'000) £'000 £'000 £'000 £'000 £'000 (£'000) £'000 £'000 £'000 (£'000) £'000 £'000 £'000 (£'000) £'000 £'000 £'000 (£'000) £'000 £'000 £'000 Council House New Build Programme Glebe, Scone - 65 Units 21 0 21 21 0 0 0 0 0 0 0 0 0 0 0 0 21 Council Tax (Second Income) 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Scottish Government Subsidy 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 21 0 0 21 0 21 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 21 Milne Street, Perth - 8 Units 3 0 3 3 0 0 0 0 0 0 0 0 0 0 0 0 3 Council Tax (Second Income) 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Third Party Contribution (Commuted Sums) 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Scottish Government Subsidy 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 3 0 0 3 0 3 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 3 Huntingtower, Perth - 70 Units 2 0 2 2 0 0 0 0 0 0 0 0 0 0 0 0 2 Council Tax (Second Income) 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Scottish Government Subsidy 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 2 0 0 2 0 2 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 2 Fairfield, Perth 2,653 0 2,653 2,088 2,653 0 0 0 0 0 0 0 0 0 0 0 0 2,653 Council Tax (Second Income) (360) 0 (360) (360) (360) 0 0 0 0 0 0 0 0 0 0 0 0 (360) Scottish Government Subsidy (652) 0 (652) (651) (652) 0 0 0 0 0 0 0 0 0 0 0 0 (652) 1,641 0 0 1,641 1,077 1,641 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1,641 Lynedoch Road, Methven 2,362 0 218 2,580 2,193 2,580 1,039 0 (218) 821 0 0 0 0 0 0 0 0 0 3,401 Council Tax (Second Income) (480) 0 (480) (480) (480) 0 0 0 0 0 0 0 0 0 0 0 0 (480) Scottish Government Subsidy (1,074) 0 (1,074) (1,074) (1,074) 0 0 0 0 0 0 0 0 0 0 0 0 (1,074) 808 0 218 1,026 639 1,026 1,039 0 (218) 821 0 0 0 0 0 0 0 0 0 0 0 0 1,847 Newburgh Road, Abernethy 414 0 414 424 414 0 0 0 0 0 0 0 0 0 0 0 0 414 Council Tax (Second Income) 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Scottish Government Subsidy 0 0 0 (21) 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Capital Receipts (708) 0 (708) (766) (708) 0 0 0 0 0 0 0 0 0 0 0 0 (708) (294) 0 0 (294) (363) (294) 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 (294) Future Developments 3,751 0 3,751 3,751 4,894 0 4,894 5,128 0 5,128 6,014 0 6,014 3,014 3,000 6,014 25,801 Council Tax (Second Income) 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Scottish Government Subsidy 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 3,751 0 0 3,751 0 3,751 4,894 0 0 4,894 5,128 0 0 5,128 6,014 0 0 6,014 3,014 3,000 0 6,014 25,801 Total Council House New Build 5,932 0 218 6,150 1,353 6,150 5,933 0 (218) 5,715 5,128 0 0 5,128 6,014 0 0 6,014 3,014 3,000 0 6,014 29,021 Increase in Council House Stock Council House Buy-Backs 3,298 0 822 4,120 4,121 4,120 4,050 0 (612) 3,438 3,000 0 3,000 3,000 0 3,000 3,000 0 3,000 16,558 Scottish Government Subsidy (1,050) 0 (210) (1,260) (1,050) (1,260) (1,050) 0 (1,050) 0 0 0 0 0 0 0 0 0 (2,310) 2,248 0 612 2,860 3,071 2,860 3,000 0 (612) 2,388 3,000 0 0 3,000 3,000 0 0 3,000 3,000 0 0 3,000 14,248 Lock-ups and Garage Sites 0 0 0 0 0 0 0 50 0 50 0 0 0 0 0 0 50 HRA CAPITAL INVESTMENT PROGRAMME SUMMARY OF CAPITAL RESOURCES AND EXPENDITURE 2022/23 to 2026/27 PERTH AND KINROSS COUNCIL 7 Page 79 of 102
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APPENDIX III Approved Approved Proposed Revised Actual Projected Approved Approved Proposed Revised Approved Approved Proposed Revised Approved Approved Proposed Revised Approved Approved Proposed Revised Revised Budget Budget Budget Budget to Outturn Budget Budget Budget Budget Budget Budget Budget Budget Budget Budget Budget Budget Budget Budget Budget Budget Budget 01-Feb-23 Adjustment Adjustment 28-Feb-23 01-Feb-23 Adjustment Adjustment 01-Feb-23 Adjustment Adjustment 01-Feb-23 Adjustment Adjustment 01-Feb-23 Adjustment Adjustment 25-Jan-23 Report 4 Report 4 Report 4 25-Jan-23 Report 4 Report 4 25-Jan-23 Report 4 Report 4 25-Jan-23 Report 4 Report 4 25-Jan-23 Report 4 Report 4 Report 4 2022/23 2022/23 2022/23 2022/23 2022/23 2022/23 2023/24 2023/24 2023/24 2023/24 2024/25 2024/25 2024/25 2024/25 2025/26 2025/26 2025/26 2025/26 2026/27 2026/27 2026/27 2026/27 TOTAL £'000 (£'000) £'000 £'000 £'000 £'000 £'000 (£'000) £'000 £'000 £'000 (£'000) £'000 £'000 £'000 (£'000) £'000 £'000 £'000 (£'000) £'000 £'000 £'000 Standard Delivery Plan Central Heating and Rewiring Works 864 0 (142) 722 538 722 0 0 142 142 0 0 0 0 0 0 0 0 0 864 - less Third Party Contribution 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Rewiring, Infrastructure & Property Refurbishment 941 0 941 395 941 1,000 0 1,000 1,686 0 1,686 0 0 0 0 0 0 3,627 Triple Glazing 111 0 220 331 90 331 0 0 2,500 2,500 0 0 0 0 0 0 0 0 0 2,831 Controlled Door Entry 35 0 35 38 35 0 0 0 30 0 30 0 0 0 0 0 0 65 - less Third Party Contribution (2) 0 (2) (1) (2) 0 0 0 0 0 0 0 0 0 0 0 0 (2) Kitchen Modernisation Programme 290 0 50 340 211 340 1,832 0 (50) 1,782 1,504 0 1,504 625 0 625 0 0 0 4,251 Bathroom Modernisation Programme 1,110 0 400 1,510 1,252 1,510 0 0 0 0 0 0 0 0 0 0 0 0 1,510 External Fabric 2,200 0 400 2,600 2,340 2,600 598 0 (400) 198 528 0 528 625 0 625 0 0 0 3,951 - less Third Party Contribution 0 0 0 (16) 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Energy Efficiency 331 0 331 78 331 0 0 0 875 0 875 625 0 625 0 0 0 1,831 Multi Storey Flats 2,290 (2,000) 290 30 290 0 2,000 2,000 0 0 0 0 0 0 0 0 0 2,290 Environmental Improvements 602 0 602 378 602 333 0 333 0 0 0 0 0 0 0 0 0 935 Fire Precaution Measures 524 0 524 481 524 0 0 0 0 0 0 0 0 0 0 0 0 524 Sound Insulation 140 0 140 13 140 162 0 162 100 0 100 42 0 42 0 0 0 444 Structural 20 0 20 20 458 0 458 250 0 250 522 0 522 0 0 0 1,250 SHQS Future Developments 0 0 0 0 0 0 0 0 0 0 7,216 0 (3,150) 4,066 10,030 0 10,030 14,096 Total Standard Delivery Plan 9,456 (2,000) 928 8,384 5,827 8,384 4,383 2,000 2,192 8,575 4,973 0 0 4,973 9,655 0 (3,150) 6,505 10,030 0 0 10,030 38,467 Other Investment in Council House Stock Total Major Adaptations to Council House Stock 4 0 4 4 0 0 0 100 0 100 0 0 0 0 0 0 104 Balmoral Road, Rattray, Refurbishment (3 Units) 273 0 273 273 0 0 0 0 0 0 0 0 0 0 0 0 273 Anchor House, Rannoch Road, Perth - Conversion (5 Units) 109 0 (100) 9 2 9 0 0 100 100 0 0 0 0 0 0 0 0 0 109 149-151 Dunkeld Road, Perth 25 0 25 2 25 0 0 0 0 0 0 0 0 0 0 0 0 25 - Government Grant 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 111 Rannoch Road, Perth (Former Driving Test Centre) 227 0 227 208 227 0 0 0 0 0 0 0 0 0 0 0 0 227 St.Catherine's Square Redevelopment 0 0 0 0 2,991 0 2,991 402 0 402 0 0 0 0 0 0 3,393 Shops & Offices 192 0 (186) 6 3 6 50 0 186 236 50 0 50 0 0 0 0 0 0 292 Greyfriars and Satellite Sites 34 0 34 34 0 0 0 50 0 50 0 0 0 0 0 0 84 Sheltered Housing 13 0 35 48 17 48 0 0 0 5 0 (5) 0 0 0 0 0 0 0 48 Double Dykes Chalet Replacement 0 0 73 73 12 73 0 0 0 0 0 0 0 0 0 0 0 0 73 - Scottish Government Grant 0 0 (73) (73) 0 (73) 0 0 0 0 0 0 0 0 0 0 0 0 (73) General Capital Works 31 0 31 32 31 0 0 0 0 0 0 0 0 0 0 0 0 31 Upgrade and Replacements to Lifts Programme 143 0 (139) 4 4 4 0 0 139 139 0 0 0 0 0 0 0 0 0 143 ICT Expenditure 178 0 (178) 0 0 50 0 178 228 50 0 50 0 0 0 0 0 0 278 Mortgage to Rent 125 0 125 125 50 0 50 50 0 50 0 0 0 0 0 0 225 Total Other Investment in Council House Stock 1,354 0 (568) 786 280 786 3,141 0 603 3,744 707 0 (5) 702 0 0 0 0 0 0 0 0 5,232 Total Net Expenditure 18,990 (2,000) 1,190 18,180 10,531 18,180 16,457 2,000 1,965 20,422 13,858 0 (5) 13,853 18,669 0 (3,150) 15,519 16,044 3,000 0 19,044 87,018 Income CAPITAL RECEIPTS (9) (185) (194) (9) (194) 0 0 0 0 0 0 0 0 0 0 0 0 (194) CFCR (2,458) 0 (2,458) (2,458) (2,645) 590 (2,055) (3,329) 1,411 (1,918) (3,960) 1,712 (2,248) (4,279) 1,759 (2,520) (11,199) TOTAL BORROWING REQUIREMENT 16,523 (2,000) 1,005 15,528 10,522 15,528 13,812 2,590 1,965 18,367 10,529 1,411 (5) 11,935 14,709 1,712 (3,150) 13,271 11,765 4,759 0 16,524 75,625 Page 80 of 102
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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 and letter of intent signed Additional £9.3m of funding approved by the Council on 1 March 2023. Letter of intent signed with Hubco/BAM to secure some pricing elements. Anticpated financial close and start on site for mid-May 2023, with estimated completion for Easter 2025. North/West Perth New Primary School* 24,000 0 24,000 24,000 Summer 2026 No No On track No New Project Request submitted to HubCo in February 2023. Consultant/ Contractor selection in progress. Riverside Primary New School 19,899 0 19,899 19,899 Early summer 2023 Yes Yes New completion date agreed Yes - revised completion date Completion date changed due to commissioning requirements 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 and FC concluded FC concluded and construction works commenced. Harris Academy/Invergowrie Extension 5,200 0 5,200 5,200 Late 2023 Yes Yes On track No Construction contract signed - project to be delivered by Dundee City Council Cross Tay Link Road (CTLR) 150,500 40,000 110,500 110,500 Spring 2025 Yes Yes On track No Some movement in expenditure in 2022/23 relating to programming of works, as well as risk contingency and compensation events not materialising in year. Expenditure reprofiled. Comrie Flood Protection Scheme 28,435 0 28,435 28,435 End of 2024 No No Advance works substantially complete No Detailed design on-going; anticipated completion is at end of March 2023. Preliminary advance works are ongoing and substantially complete with main construction works anticipated to start in summer 2023, with a duration of 18 months. Perth Eco Innovation Park* 32,817 11,275 21,542 21,542 Not currently programmed No No Preliminary design works completed Yes - confirmation of additional resources approved by Council Following the application for Levelling Up Fund Grant funding of £10 million being unsuccessful, the Council approved a net increased of £10m on 1 March 2023. Further contributions and receipts are anticipated in years beyond the current programme to 2027/28. Perth Museum 27,232 10,300 16,932 16,932 Spring 2024 Yes Yes On track No Collections Centre 0 0 0 0 n/a No No Project removed from the programme by the Council on 1 March 2023 Yes PH2O 90,000 0 90,000 90,000 Not currently programmed No No Outline Business Case reported to Council 23 February 2023, and project on hold pending review. Yes Council approved to put the project on hold due to affordability and pending the outcome of a wider review in to leisure and cultural assets and how best to target the required investment in arts and leisure for the benefit of the wider community. * Third Party Funding excludes Developer Contributions and receipts to be received in future years beyond the current 5-year programme. 7 Page 81 of 102
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PERTH AND KINROSS COUNCIL Finance & Resources Committee 26 April 2023 TREASURY ACTIVITY AND COMPLIANCE REPORT 2022/23 QUARTER 4 Report by Head of Finance (Report No. 23/122) 1. PURPOSE 1.1 The purpose of this report is to update the Committee on Treasury Activity for the quarter ending 31 March 2023 and to report on compliance with the Council’s Treasury Management Policy Statement (TMPS); Investment Strategy and Prudential Indicators. 2. RECOMMENDATION 2.1 It is recommended that the Committee: (i) notes the content of this report. (ii) approves the continuation of the Council’s 2022/23 Permitted Investments until 10 May 2023. 3. STRUCTURE OF REPORT 3.1 This report is structured over the following sections: • Section 4: Economic Background • Section 5: Treasury Activity • Section 6: Compliance • Section 7: Investment Strategy Compliance and Performance • Section 8: Prudential Indicators • Section 9: Conclusion 4. ECONOMIC BACKGROUND 4.1 The Bank of England’s Monetary Policy Committee (MPC) increased the UK Bank Base Rate from 3.50% to 4.0% at its meeting on 2 February 2023, with a further increase to 4.25% on 23rd March 2023.These increases were in response to high CPI inflation. While UK Inflation fell slightly from 10.5% in December 2022 to 10.1% in January 2023 it unexpectedly increased to 10.4% in February 2023. The biggest upward pressure came from the cost of food and non-alcoholic beverages mainly due to shortages of salad produce and other vegetables in Southern Europe & Africa, as well as the impact of higher electricity prices. Retail Price Index (RPI) inflation increased from 13.4% in January 2023 to 13.8% in February 2023. The latest CPI inflation figure shows a reduction to 10.1% in March 2023 (RPI 13.5%), with continuing high food prices keeping inflation higher than forecast. 8 Page 83 of 102
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4.2 UK Gross Domestic Product (GDP) showed no growth in the 3 months to December 2022 with exports declining and imports increasing, however this was better than forecast. 4.3 Internationally, Europe experienced no GDP growth in the last quarter to 31 December 2022, but there was a slight reduction in inflation. However, as inflation was still at a high level in these regions, central banks also increased their bank rates over the quarter. In the US, GDP and Inflation both fell. The US interest rate also increased in response to continued high inflation. 4.4 The Public Works Loan Board’s (PWLB) certainty fixed interest rates for the quarter, which are based on yields on UK gilts, are shown in the graph in Appendix I. PWLB borrowing rates showed significant volatility over the quarter and had decreased at the start of the quarter before increasing significantly in the second half of the quarter. The volatility was caused by the impact of base rate increases, inflationary pressures, and economic growth prospects relative to other major economies. Uncertainty surrounding the global banking sector also added to the volatility towards the end of the quarter. Over the 3-month period, longer-term rates were slightly lower by the end of the quarter, whilst the short term (1 year) rate ended higher. 5. TREASURY ACTIVITY 5.1 A summary of the Council’s treasury position and transactions is shown in Appendix II. The main activities are detailed below. 5.2 During the quarter there was no new long-term PWLB borrowing undertaken, however there was one maturing 11.5 year PWLB fixed-rate loan for £3 million at 4.22% repaid in the quarter. Therefore, over the quarter the Council’s total long-term debt reduced from £606.3 million to £603.3 million at an average rate of 2.56%. There was 1 short-term market loan borrowed in the quarter for £3 million for 17 days at 4.0%, which was repaid before the end of the quarter. 5.3 Common Good and Charitable Fund balances held on fixed deposit within the Loans Fund increased slightly from £2.132 million to £2.294 million, with the average interest rate paid increasing from 1.14%to 3.93%. Funds held from associated bodies and organisations reduced from £4.129 million to £3.117 million over the quarter, in line with their own cash flow requirements, whilst the average rate paid on these funds increased from 2.86% to 3.63% in line with increases in the Bank Base Rate. 5.4 Short term cashflow surpluses are invested in a mixture of fixed term deposits, instant access accounts, notice accounts and money market funds. All investments were made in accordance with the approved Investment Strategy and Permitted Investments. Fixed Term Deposits 5.5 Cashflow surpluses which arise during the year, and which are not immediately required, are generally invested in fixed term deposits for periods Page 84 of 102
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of up to 12 months, or up to 3 years where forecast cashflow requirements allow. 5.6 There were 14 fixed rate deposits made in the quarter (totalling £92 million) at an average amount of £3.5 million and at an average interest rate of 4.19% and average term of 176 days. Fixed deposit activity in the current quarter therefore increased from the previous quarter to 31 December (£25 million) mainly due to maturing deposits and retaining cashflows in the run up to the end of the financial year. The deposits were spread between different banking sectors and other local authorities. As interest rates increased over the quarter, the average rate also improved. Deposits undertaken in the quarter will generate £2,314,645 in interest at their maturity. Investments for Daily Cashflow Requirements 5.7 Cashflow surpluses which are required for more immediate needs are invested in the Council’s instant access, notice deposit accounts and money market funds. These investment transactions in the quarter can be summarised as follows: • The daily average amount of such funds over the quarter reduced from £7.2 million in the last quarter to £4.4 million in the current quarter. • The average interest rate achieved on these accounts over the quarter increased from 2.83% to 3.64% reflecting the increase in the base rate. • The reduction in activity on these accounts reflects the increase in fixed deposit transactions and cashflow balances in the last quarter of the financial year. • Money Market Funds, which operate on instant access terms, were used extensively over the quarter to invest day-to-day cashflow balances. However, the average amount invested reduced from £11.8 million in the previous quarter to £6.5 million in the current quarter, whilst the average interest rate increased from 2.89% to 3.72%. • Interest generated on these investments over the quarter amounted to £90,473. 5.8 The total amount of investments outstanding at 31 March 2023 was £173.650 million compared to £207.67 million at the end of the previous quarter. The overall average rate of interest on the investments outstanding increased from 2.67% at the end of the previous quarter to 3.76% at the end of the current quarter. This increase reflects the increases in base rates over the quarter. 5.9 Total investment income generated on the investments undertaken during the quarter is £2,405,117 (£456,228 in the quarter ended 31 December 2022). This measure reflects the total return on the investment activity undertaken in each quarter and is significantly higher in comparison to the last quarter due to the increase in fixed deposit activity for longer durations, and the significant increase in interest rates available. 5.10 All of the above investment activities are consistent with the Council’s current investment strategy and cashflow requirements. Page 85 of 102
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6. COMPLIANCE 6.1 For the quarter ending 31 March 2023, 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). 6.2 Appendix III shows the list of approved counterparties, based on the Council’s current lending policy, as at March 2023. 6.3 For the quarter ending 31 March 2023 the average closing cleared bank balance was £28,405 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. 7. INVESTMENT STRATEGY COMPLIANCE AND PERFORMANCE 7.1 The Treasury Investment Strategy for 2022/23 was approved by the Council at its meeting on 9 March 2022 (report 22/47 refers). 7.2 In the current quarter, the level of Council investments peaked at £232.977 million on 18 January 2023 and reduced to £173.650 million by the end of the quarter. The average daily investment balance over the quarter was £205.159 million, which decreased from an average of £237.987 million in the previous quarter and from £262.917 million in the same quarter of last year. This highlights the significant reduction in investment balances in the quarter. 7.3 As a result of long-term borrowing last year, the investment balances in the current year have been higher. However, this is steadily reducing (subject to daily fluctuations) as the Capital programme is delivered, and in line with forecast cashflows particular towards the end of the financial year. In line with the approved Capital Programme, investment balances are forecast to fall significantly over the next 12 months. 7.4 The Investment Strategy was applied in full over the quarter, with liquidity being maintained using instant access accounts and money market funds as detailed in paragraph 5.7 above. There were no other risks identified in the quarter. 7.5 As the Council’s Treasury & Investment Strategy for 2023/24 to 2027/28 will not be considered until the Council meeting on 10 May 2023, it is proposed that the Permitted Investments for 2022/23 continue in force until that time. It is not proposed to make any changes to the Permitted Investments or limits at this time. 7.6 The Investment Strategy also incorporates investments held by the Common Good Funds. All such investments during the quarter 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. Page 86 of 102
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7.7 The budgeted income in 2022/23 for Commercial Property investments is £1,812,000 whilst the latest projection for the year is £1,868,000. There were no new property investments entered into during the quarter. 8. PRUDENTIAL INDICATORS 8.1 Prudential Indicators for 2022/23 to 2027/28 were approved by the Council at the meeting on 9 March 2022 (report 22/47 refers) as part of the Annual Treasury & Investment Strategy report. 8.2 The latest estimates of the Prudential Indicators, in line with the Council’s current approved Capital Budget and Capital Financing (borrowing) requirements, are shown in Appendix IV. These show that the Council adhered to all Prudential limits in the quarter. However, the annual Loan Charges relative to the Net Revenue stream and the Capital Financing (Borrowing) Requirement show an increasing trend which reflects the current Capital Programme and increasing interest rates forecast over the period. The estimates of Capital Expenditure and the borrowing requirements also reflect the increases approved in the Composite Capital programme over the last year. 9. CONCLUSION 9.1 The Bank of England’s MPC increased the Bank Base Rate from 3.50% to 4.25% over the quarter due to continued inflationary pressures. Inflation increased unexpectedly in February 2023 primarily due to food and energy costs. 9.2 PWLB borrowing rates fluctuated over the quarter due to the continued inflationary expectations and economic growth prospects. Rates for short-term PWLB borrowing increased over the quarter whilst the rates for longer term borrowing fell slightly. All rates, however, remain at higher levels compared to early in the year. 9.3 Investment activity in the quarter consisted mainly of the use of fixed deposits as previous deposits matured, and the use of money market funds to meet day- to-day cashflows. Investment rates and activity increased over the quarter, however, the total level of investments outstanding reduced. 9.4 The Council adhered to its Investment Strategy and policies throughout the quarter, with no breaches in compliance. It is proposed that the Permitted Investments for 2022/23 continue in force until the Council consider the Annual Treasury & Investment Strategy on 10 May 2023. 9.5 The Council’s Prudential Indicators were also adhered to throughout the quarter. Author(s) Name Designation Contact Details Page 87 of 102
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John Jennings Senior Accountant CHXFinance@pkc.gov.uk Approved Name Designation Date Stewart MacKenzie Karen Donaldson Head of Finance Chief Operating Officer 4 April 2023 4 April 2023 Page 88 of 102
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ANNEX 1. IMPLICATIONS, ASSESSMENTS, CONSULTATION AND COMMUNICATION Strategic Implications Yes / None Community Plan / Single Outcome Agreement None Corporate Plan Yes Resource Implications Financial Yes Workforce None Asset Management (land, property, IST) None Assessments Equality Impact Assessment Yes Strategic Environmental Assessment Yes Sustainability (community, economic, environmental) Yes Legal and Governance None Risk None Consultation Internal Yes External None Communication Communications Plan None 1. Strategic Implications Corporate Plan 1.1 The Council’s Corporate Plan 2022 – 2027 lays out seven outcome focussed strategic objectives which provide clear strategic direction, inform decisions at a corporate and service level and shape resources allocation. They are as follows: • Tackling Poverty • Tackling climate change and supporting sustainable places • Growing a sustainable and inclusive local economy • Enabling our children and young people to achieve their full potential • Protecting and caring for our most vulnerable people • Supporting and promoting physical and mental wellbeing • Placing communities at the heart of how we work 1.2 This report relates to all of these objectives. 2. Resource Implications Financial 2.1 There are no direct financial implications arising from this report other than those reported within the body of the main report. Page 89 of 102
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Workforce 2.2 There are no direct workforce implications arising from this report. Asset Management (land, property, IT) 2.3 There are no direct asset management implications arising from this report other than those reported within the body of the main report. 3. Assessments Equality Impact Assessment 3.1 Under the Equality Act 2010, the Council is required to eliminate discrimination, advance equality of opportunity, and foster good relations between equality groups. Carrying out Equality Impact Assessments for plans and policies allows the Council to demonstrate that it is meeting these duties. 3.2 The information contained within this report has been considered under the Corporate Equalities Impact Assessment process (EqIA) and has been assessed as not relevant for the purposes of EqIA. Strategic Environmental Assessment 3.3 The Environmental Assessment (Scotland) Act 2005 places a duty on the Council to identify and assess the environmental consequences of its proposals. 3.4 The information contained within this report has been considered under the Act. However, no action is required as the Act does not apply to the matters presented in this report. Sustainability 3.5 Under the provisions of the Local Government in Scotland Act 2003 the Council has to discharge its duties in a way which contributes to the achievement of sustainable development. In terms of the Climate Change Act, the Council has a general duty to demonstrate its commitment to sustainability and the community, environmental and economic impacts of its actions. 3.6 The information contained within this report has been considered under the Act. However, no action is required as the Act does not apply to the matters presented in this report. 4. Consultation 4.1 The Chief Executive and the Council’s Treasury advisors, Link Asset Services, have been consulted in the preparation of this report. Page 90 of 102
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2. BACKGROUND PAPERS 2.1 No background papers, as defined by Section 50D of the Local Government (Scotland) Act 1973 (other than any containing confidential or exempt information) were relied on to any material extent in preparing the above report. 3. APPENDICES • Appendix I – PWLB Fixed Maturity Interest Rates from 1 January to 31 March 2023. • Appendix II – Summary of the Treasury Position and Transactions from 1 January to 31 March 2023. • Appendix III – Approved Investment Counterparty List. • Appendix IV – Monitoring of Prudential Indicators – Quarter ending 31 March 2023. Page 91 of 102
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PWLB Fixed Maturity Interest Rates From 1st January to 31st March 2023 (Certainty Rate) APPENDIX I 3.00 3.25 3.50 3.75 4.00 4.25 4.50 4.75 5.00 5.25 5.50 01-Jan-23 08-Jan-23 15-Jan-23 22-Jan-23 29-Jan-23 05-Feb-23 12-Feb-23 19-Feb-23 26-Feb-23 05-Mar-23 12-Mar-23 19-Mar-23 26-Mar-23 1 Year 5 Years 10 Years 20 Years 30 Years 50 Years 8 Page 93 of 102
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SUMMARY OF THE TREASURY POSITION AND TRANSACTIONS 1 JANUARY TO 31 MARCH 2023 APPENDIX II 1 LONG TERM BORROWING (a) Long Term Borrowing 1st January to 31st March 2023 Average Average Amount No. Rate (%) Life (years) (£) None 0 0.00% 0.00 0 0 0.00% 0.0 0 (b) Long Term Debt Repayments 1st January to 31st March 2023 Average Amount No. Rate (%) (£) PWLB - Maturity Loan - Scheduled Repayments 1 4.22% 3,000,000 1 4.22% 3,000,000 (c) Long Term Debt Outstanding Outstanding Average Outstanding Average 31-Dec-22 Rate 31-Mar-23 Rate £ £ Public Works Loan Board 563,000,000 2.41% 560,000,000 2.40% Money Market Loans (LOBO's) 43,200,000 4.59% 43,200,000 4.59% Other Long Term Debt 140,000 0.00% 140,000 0.00% TOTAL 606,340,000 2.56% 603,340,000 2.56% 2 SHORT TERM BORROWING (a) Short Term Market Borrowing - 1st January to 31st March 2023 Average Average Average Interest No. Amount (£) Rate (%) Term (Days) (£) Temporary borrowing 1 3,000,000 4.00% 17 5,589.04 1 3,000,000 4.00% 17 5,589.04 (b) Short Term Borrowing Outstanding Outstanding Average Outstanding Average 31-Dec-22 Rate 31-Mar-23 Rate £ £ Market Borrowing 0 0.00% 0 0.00% Common Good and Charitable Funds 2,131,508 1.14% 2,293,508 3.93% Local Trusts & Investors 4,129,401 2.86% 3,117,401 3.63% TOTAL 6,260,908 2.27% 5,410,908 3.76% 8 Page 95 of 102
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SUMMARY OF THE TREASURY POSITION AND TRANSACTIONS 1 JANUARY TO 31 MARCH 2023 APPENDIX II 3 INVESTMENTS (a) Investment Transactions - 1st January to 31st March 2023 Average Average Average Total Fixed Deposits & Investments No. Amount (£) Rate (%) Term (Days) Interest (£) Banks 3 8,333,333 4.50% 254 800,561.64 Foreign Banks and Institutions 5 5,000,000 3.87% 98 299,611.78 Other Local Authorities 6 7,000,000 4.47% 233 1,214,471.23 14 3,571,429 4.19% 176 2,314,644.66 Average Average Total Instant/Notice Accounts & Money Market Funds Amount (£) Rate (%) Interest (£) Instant Access/Notice accounts 425,895 1.38% 1,093.38 Money Market Funds 6,529,455 3.72% 89,379.33 4,377,559 3.64% 90,472.71 (b) Investments Outstanding Outstanding Average Outstanding Average 31-Dec-22 Rate 31-Mar-23 Rate £ £ UK Banks 98,023,256 2.81% 99,650,000 3.42% Foreign Banks and Institutions 88,000,000 2.95% 32,000,000 3.89% Money Market Funds 1,650,000 3.28% 0 0.00% Other Local Authorities 20,000,000 0.75% 42,000,000 4.47% TOTAL 207,673,256 2.67% 173,650,000 3.76% Page 96 of 102
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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 6 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 6 months £80million Group limit Lloyds Banking Group plc (RFB) UK A+, F1 In range 6 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 Nationalised 12 months Sovereign Rating AA 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 6 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 6 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 6 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 12 months Wells Fargo Bank, NA USA AA-, F1+ In range 12 months 8 Page 97 of 102
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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 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-23(5) - NRFB = Non Ring Fenced Bank, RFB = Ring Fenced Ban Page 98 of 102
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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. 8 Page 99 of 102
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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. Page 100 of 102
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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 Page 101 of 102
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