Appendix V - Prudential Indicators 2025-26 to 2030-31

Perth and Kinross Council · 5 March 2025
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PERTH AND KINROSS COUNCIL
PRUDENTIAL INDICATORS 2025/26 TO 2030/31
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.
2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31
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 7.03% 8.25% 9.05% 9.57% 9.66% 9.38% 9.13%
Prudential Limit - HRA 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00%
Estimated Ratio of Financing Costs to Revenue 22.90% 26.10% 27.79% 28.51% 28.24% 27.88% 28.14%
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-25 31-Mar-26 31-Mar-27 31-Mar-28 31-Mar-29 31-Mar-30 31-Mar-31
Net External Borrowing* 850,247,000 999,788,000 1,110,360,000 1,170,933,000 1,208,069,000 1,232,955,000 1,257,840,000
Gross External Borrowing* 860,247,000 1,019,788,000 1,130,360,000 1,190,933,000 1,228,069,000 1,252,955,000 1,277,840,000
Capital Financing Requirement 927,128,000 1,047,607,000 1,151,380,000 1,215,668,000 1,255,193,000 1,282,579,000 1,306,389,000
*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 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31
Composite Programme 164,263,000 128,007,000 133,320,000 86,258,000 64,654,000 47,673,000 43,716,000
HRA Programme 31,513,000 22,091,000 15,633,000 19,502,000 13,365,000 20,044,000 20,500,000
Total Gross Capital Expenditure 195,776,000 150,098,000 148,953,000 105,760,000 78,019,000 67,717,000 64,216,000
4 Estimate of Capital Financing Requirement
The estimate (as at March 2025) 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 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31
Composite Programme 128,987,000 114,366,000 104,858,000 62,845,000 46,923,000 29,448,000 26,966,000
HRA Programme 29,568,000 20,608,000 14,087,000 17,889,000 11,352,000 17,659,000 18,000,000
Movement in Estimated Capital Financing Requirement 158,555,000 134,974,000 118,945,000 80,734,000 58,275,000 47,107,000 44,966,000

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PERTH AND KINROSS COUNCIL
PRUDENTIAL INDICATORS 2025/26 TO 2030/31
5 External Debt (Gross and Net)
Estimated Projected Projected Projected Projected Projected Projected
External Borrowing 31-Mar-25 31-Mar-26 31-Mar-27 31-Mar-28 31-Mar-29 31-Mar-30 31-Mar-31
Public Works Loan Board 682,000,000 847,000,000 962,000,000 1,047,000,000 1,089,500,000 1,119,500,000 1,149,500,000
Market Bonds (LOBOs) 63,200,000 63,200,000 63,200,000 43,200,000 43,200,000 43,200,000 43,200,000
Project Borrowing 0 0 0 0 0 0 0
Special Loans 2,357,569 2,357,569 2,357,569 2,357,569 2,357,569 2,357,569 2,357,569
Temporary Loans/Other Borrowing 3,800,000 3,500,000 3,250,000 3,000,000 2,750,000 2,750,000 2,750,000
Other Long Term Liabilities (PPP/PFI) 108,889,304 103,730,136 99,552,709 95,375,282 90,261,141 85,147,000 80,032,859
Total Gross External Debt 860,246,873 1,019,787,705 1,130,360,278 1,190,932,851 1,228,068,710 1,252,954,569 1,277,840,428
Short Term Investments (10,000,000) (20,000,000) (20,000,000) (20,000,000) (20,000,000) (20,000,000) (20,000,000)
Long Term Investments 0 0 0 0 0 0 0
Total Net External Debt 850,246,873 999,787,705 1,110,360,278 1,170,932,851 1,208,068,710 1,232,954,569 1,257,840,428
Note:
Operational Boundary 860,000,000 1,020,000,000 1,130,000,000 1,191,000,000 1,228,000,000 1,253,000,000 1,278,000,000
Authorised Limit 1,280,000,000 1,300,000,000 1,300,000,000 1,300,000,000 1,300,000,000 1,300,000,000 1,300,000,000
* 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 was 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% 1.19%
over 12 months and < 24 months 0% 35% 1.07%
over 2 years and < 5 years 0% 50% 21.30%
over 5 years and < 10 years 0% 75% 5.77%
over 10 years 10% 95% 70.67%
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 5,000,000 5,000,000 147,500,000 20,000,000 5,000,000 2,000,000 93,500,000 404,000,000 0 682,000,000
LOBOs 0 0 20,000,000 0 0 38,200,000 0 5,000,000 0 63,200,000
Other 0 0 0 0 0 0 0 0 0 0
PPP/PFI Liability 5,159,168 4,177,427 14,405,709 29,281,566 55,865,434 0 0 0 0 108,889,304
Total 10,159,168 9,177,427 181,905,709 49,281,566 60,865,434 40,200,000 93,500,000 409,000,000 0 854,089,304
Percentage 1.19% 1.07% 21.30% 5.77% 7.13% 4.71% 10.95% 47.89% 0.00% 100.00%