Appendix 4 -Monitoring of Prudential Indicators - Quarter Ending 30 June 2023

Perth and Kinross Council · 13 September 2023
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PERTH AND KINROSS COUNCIL
PRUDENTIAL INDICATORS - QUARTER ENDING 30 JUNE 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.
2023/24 2024/25 2025/26 2026/27 2027/28
Prudential Limit - General Fund 15.00% 15.00% 15.00% 15.00% 15.00%
Estimated Ratio of Financing Costs to Revenue 7.08% 8.60% 10.09% 10.51% 9.99%
Prudential Limit - HRA 30.00% 30.00% 30.00% 30.00% 30.00%
Estimated Ratio of Financing Costs to Revenue 22.37% 22.31% 23.34% 23.55% 22.74%
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
30-Jun-23 31-Mar-24 31-Mar-25 31-Mar-26 31-Mar-27 31-Mar-28
Net External Borrowing* 570,637,000 714,533,000 966,316,000 1,066,099,000 1,120,982,000 1,155,864,000
Gross External Borrowing* 724,687,000 744,533,000 986,316,000 1,086,099,000 1,140,982,000 1,175,864,000
Capital Financing Requirement 720,743,000 837,670,000 1,007,726,000 1,105,967,000 1,161,475,000 1,196,084,000
*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 2023/24 2024/25 2025/26 2026/27 2027/28
Current estimate 209,005,000 195,542,000 111,577,000 67,408,000 48,605,000
Original Budget Estimate (including Budget Motion) 192,880,000 182,661,000 111,465,000 67,816,000 46,219,000
Movement in Estimated Capital Expenditure 16,125,000 12,881,000 112,000 (408,000) 2,386,000
The Original Budget Estimates are those per the 2023/24 to 2027/28 Composite Capital Budget Report on 1 March 2023
The latest estimates for Capital Expenditure are based on the F&R Capital Monitoring Report No 1 on 13 September 2023.
HRA Programme 2023/24 2024/25 2025/26 2026/27 2027/28
Current estimate 24,746,000 13,853,000 15,519,000 19,044,000 19,044,000
Original Budget Estimate 18,457,000 13,858,000 18,669,000 19,044,000 19,044,000
Movement in Estimated Capital Expenditure 6,289,000 (5,000) (3,150,000) 0 0
The Original Budget Estimates are those per the 2023/24 to 2027/28 Housing & Social Wellbeing Budget Report on 25 January 2023.
The latest estimates for Capital Expenditure are based on the F&R Capital Monitoring Report No 1 on 13 September 2023.

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PERTH AND KINROSS COUNCIL
PRUDENTIAL INDICATORS - QUARTER ENDING 30 JUNE 2023
APPENDIX IV
4 Estimate of Capital Financing Requirement
The estimate (as at July 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 2023/24 2024/25 2025/26 2026/27 2027/28
Current Estimated Capital Financing Requirement 157,207,000 175,445,000 93,069,000 46,776,000 25,377,000
Original Budget Estimate (including Budget Motion) 146,850,000 164,688,000 95,082,000 49,184,000 24,991,000
Movement in Estimated Capital Financing Requirement 10,357,000 10,757,000 (2,013,000) (2,408,000) 386,000
The Original Budget Estimates are those per the 2023/24 to 2027/28 Composite Capital Budget Report on 1 March 2023
The latest estimates for Capital Expenditure are based on the F&R Capital Monitoring Report No 1 on 13 September 2023.
HRA Programme 2023/24 2024/25 2025/26 2026/27 2027/28
Current Estimated Capital Financing Requirement 22,780,000 11,935,000 13,271,000 16,524,000 16,292,000
Original Budget Estimate 16,402,000 11,940,000 16,421,000 16,524,000 16,292,000
Movement in Estimated Capital Financing Requirement 6,378,000 (5,000) (3,150,000) 0 0
The Original Budget Estimates are those per the 2023/24 to 2027/28 Housing & Social Wellbeing Budget Report on 25 January 2023.
The latest estimates for Capital Expenditure are based on the F&R Capital Monitoring Report No 1 on 13 September 2023.
5 External Debt (Gross and Net)
As at Projected Projected Projected Projected Projected
External Borrowing 30-Jun-23 31-Mar-24 31-Mar-25 31-Mar-26 31-Mar-27 31-Mar-28
Public Works Loan Board 555,000,000 580,000,000 827,000,000 932,000,000 992,000,000 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 4,298,550 4,000,000 3,700,000 3,400,000 3,200,000 3,000,000
Other Long Term Liabilities (PPP/PFI) 119,755,227 115,039,977 110,122,727 105,205,477 100,288,227 95,370,977
Total Gross External Debt 724,687,285 744,533,485 986,316,235 1,086,098,985 1,140,981,735 1,175,864,485
Short Term Investments (154,050,000) (30,000,000) (20,000,000) (20,000,000) (20,000,000) (20,000,000)
Long Term Investments 0 0 0 0 0 0
Total Net External Debt 570,637,285 714,533,485 966,316,235 1,066,098,985 1,120,981,735 1,155,864,485
Note:
Operational Boundary 725,000,000 745,000,000 986,000,000 1,086,000,000 1,141,000,000 1,176,000,000
Authorised Limit 1,200,000,000 1,200,000,000 1,200,000,000 1,200,000,000 1,200,000,000 1,200,000,000
The Operational Boundary and Authorised Limit are based on Gross External Debt.

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PERTH AND KINROSS COUNCIL
PRUDENTIAL INDICATORS - QUARTER ENDING 30 JUNE 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% 0.68%
over 12 months and < 24 months 0% 35% 2.50%
over 2 years and < 5 years 0% 50% 4.84%
over 5 years and < 10 years 0% 75% 6.00%
over 10 years 10% 95% 85.99%
The maurity profile for the Council's current long-term portfolio as at 30th June 2023, 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 13,000,000 20,000,000 17,500,000 5,000,000 0 50,500,000 449,000,000 0 555,000,000
LOBOs 0 0 0 0 0 13,000,000 25,200,000 5,000,000 0 43,200,000
Other 140,000 0 0 0 0 0 0 0 0 140,000
other 4,715,250 4,917,250 14,751,750 25,571,000 66,900,000 2,899,977 0 0 0 119,755,227
Total 4,855,250 17,917,250 34,751,750 43,071,000 71,900,000 15,899,977 75,700,000 454,000,000 0 718,095,227
Percentage 0.68% 2.50% 4.84% 6.00% 10.01% 2.21% 10.54% 63.22% 0.00% 100.00%