Appendix V - Prudential Indicators 2026-27 to 2031-32
Perth and Kinross Council · 25 February 2026
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PERTH AND KINROSS COUNCIL PRUDENTIAL INDICATORS 2026/27 TO 2031/32 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. 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 2031/32 Prudential Limit - General Fund 15.00% 15.00% 15.00% 15.00% 15.00% 15.00% 15.00% Estimated Ratio of Financing Costs to Revenue 8.81% 8.91% 9.27% 9.73% 9.99% 10.40% 10.34% Prudential Limit - HRA 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% Estimated Ratio of Financing Costs to Revenue 24.14% 24.41% 26.94% 27.68% 27.31% 27.67% 28.27% 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: Estimated Projected Projected Projected Projected Projected Projected 31-Mar-26 31-Mar-27 31-Mar-28 31-Mar-29 31-Mar-30 31-Mar-31 31-Mar-32 Net External Borrowing* 915,987,000 1,042,558,000 1,118,043,000 1,193,028,000 1,241,097,000 1,299,198,000 1,327,298,000 Gross External Borrowing* 925,987,000 1,052,558,000 1,128,043,000 1,203,028,000 1,251,097,000 1,309,198,000 1,337,298,000 Capital Financing Requirement 1,009,937,000 1,104,936,000 1,177,017,000 1,232,504,000 1,273,146,000 1,330,202,000 1,357,325,000 *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 based on the Council's recent approved Budgets for each year is as follows. Gross Capital Expenditure 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 2031/32 Composite Programme 113,526,000 109,924,000 104,974,000 81,787,000 68,527,000 77,802,000 48,063,000 HRA Programme 46,695,000 24,011,000 15,975,000 10,698,000 9,423,000 21,044,000 21,500,000 Total Gross Capital Expenditure 160,221,000 133,935,000 120,949,000 92,485,000 77,950,000 98,846,000 69,563,000 4 Estimate of Capital Financing Requirement The estimate (as at February 2026) of the Capital Financing Requirement (ie new borrowing requirement for Capital Expenditure) for each year based on these plans is as follows: Capital Financing Requirement 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 2031/32 Composite Programme 96,674,000 91,220,000 72,259,000 62,656,000 50,602,000 56,088,000 31,063,000 HRA Programme 45,011,000 22,620,000 14,593,000 9,196,000 7,432,000 18,735,000 19,000,000 Movement in Estimated Capital Financing Requirement 141,685,000 113,840,000 86,852,000 71,852,000 58,034,000 74,823,000 50,063,000
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PERTH AND KINROSS COUNCIL PRUDENTIAL INDICATORS 2026/27 TO 2031/32 5 External Debt (Gross and Net) - Operational Boundary and Authorised Limit Estimated Projected Projected Projected Projected Projected Projected External Borrowing 31-Mar-26 31-Mar-27 31-Mar-28 31-Mar-29 31-Mar-30 31-Mar-31 31-Mar-32 Public Works Loan Board 751,500,000 900,416,667 1,001,833,334 1,082,750,000 1,136,500,000 1,200,250,000 1,234,000,000 Market Bonds (LOBOs) 53,200,000 53,200,000 33,200,000 33,200,000 33,200,000 33,200,000 33,200,000 Special Loans 2,686,000 2,686,000 2,686,000 2,686,000 2,686,000 2,686,000 2,686,000 Temporary Loans/Other Borrowing 20,000,000 3,000,000 2,750,000 2,500,000 2,500,000 2,500,000 2,500,000 Other Long Term Liabilities (PPP/PFI) 98,601,472 93,255,328 87,573,783 81,892,238 76,210,693 70,561,570 64,912,447 Total Gross External Debt 925,987,472 1,052,557,995 1,128,043,117 1,203,028,238 1,251,096,693 1,309,197,570 1,337,298,447 Short Term Investments (10,000,000) (10,000,000) (10,000,000) (10,000,000) (10,000,000) (10,000,000) (10,000,000) Long Term Investments 0 0 0 0 0 0 0 Total Net External Debt 915,987,472 1,042,557,995 1,118,043,117 1,193,028,238 1,241,096,693 1,299,197,570 1,327,298,447 Note: Operational Boundary 926,000,000 1,053,000,000 1,129,000,000 1,204,000,000 1,252,000,000 1,310,000,000 1,338,000,000 Authorised Limit 1,300,000,000 1,355,000,000 1,355,000,000 1,355,000,000 1,355,000,000 1,355,000,000 1,355,000,000 * The Operational Boundary and Authorised Limit are based on Gross External Debt. 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 start of the financial year. 7 MATURITY STRUCTURE The lower and upper limit for the proportion of the Council's total-long term debt which matures in each of the time bandings below, and is therefore subject to refinancing at the prevailing market rates, is as follows: Fixed Rate Borrowing Maturity Structure Lower Limit Upper Limit Estimated Under 12 months 0% 35% 5.14% over 12 months and < 24 months 0% 35% 10.99% over 2 years and < 5 years 0% 50% 19.22% over 5 years and < 10 years 0% 75% 3.73% over 10 years 10% 95% 60.93% The maurity profile for the Council's current long-term portfolio, 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 41,083,333 73,583,333 156,583,334 3,750,000 5,000,000 0 87,500,000 384,000,000 0 751,500,000 LOBOs/Market 0 20,000,000 0 0 0 33,200,000 0 0 0 53,200,000 Other 0 0 0 0 0 0 0 0 0 0 PPP/PFI Liability 5,346,144 5,681,545 17,012,213 29,908,693 40,652,877 0 0 0 0 98,601,472 Total 46,429,477 99,264,878 173,595,547 33,658,693 45,652,877 33,200,000 87,500,000 384,000,000 0 903,301,472 Percentage 5.14% 10.99% 19.22% 3.73% 5.05% 3.68% 9.69% 42.51% 0.00% 100.00%