Appendix 5

Perth and Kinross Council · 10 May 2023
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Page 1

PERTH AND KINROSS COUNCIL
PRUDENTIAL INDICATORS 2022/23 TO 2027/28
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 som
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 6.38% 7.09% 8.19% 9.09% 9.01% 9.03%
Prudential Limit - HRA 30.00% 30.00% 30.00% 30.00% 30.00% 30.00%
Estimated Ratio of Financing Costs to Revenue 23.09% 23.03% 24.12% 24.28% 23.38% 23.80%
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 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* 556,333,000 788,463,000 939,000,000 1,047,838,000 1,113,220,000 1,163,703,000
Gross External Borrowing* 729,983,000 813,463,000 959,000,000 1,057,838,000 1,123,220,000 1,173,703,000
Capital Financing Requirement 686,468,000 831,238,000 997,079,000 1,094,101,000 1,150,095,000 1,195,191,000
*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 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28
Composite Programme 128,524,000 194,880,000 184,661,000 113,465,000 69,816,000 48,219,000
HRA Programme 16,990,000 18,457,000 13,858,000 18,669,000 19,044,000 19,044,000
Total Gross Capital Expenditure 145,514,000 213,337,000 198,519,000 132,134,000 88,860,000 67,263,000
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:
Capital Financing Requirement 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28
Composite Programme 83,526,000 146,850,000 164,688,000 95,082,000 49,184,000 24,991,000
HRA Programme 14,523,000 16,402,000 11,940,000 16,421,000 16,524,000 16,292,000
Movement in Estimated Capital Financing Requirement 98,049,000 163,252,000 176,628,000 111,503,000 65,708,000 41,283,000

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PERTH AND KINROSS COUNCIL
PRUDENTIAL INDICATORS 2022/23 TO 2027/28
5 External Debt (Gross and Net)
Actual 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 560,000,000 650,000,000 802,000,000 907,000,000 977,000,000 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 2,293,507 2,293,507 2,293,507 2,293,507 2,293,507 2,293,507
Temporary Loans/Other Borrowing 3,117,401 2,700,000 2,200,000 2,000,000 1,800,000 1,700,000
Other Long Term Liabilities (PPP/PFI) 121,231,770 115,269,194 109,306,618 103,344,043 98,926,869 94,509,695
Total Gross External Debt 729,982,678 813,462,701 959,000,125 1,057,837,550 1,123,220,376 1,173,703,202
Short Term Investments (173,650,000) (25,000,000) (20,000,000) (10,000,000) (10,000,000) (10,000,000)
Long Term Investments 0 0 0 0 0 0
Total Net External Debt 556,332,678 788,462,701 939,000,125 1,047,837,550 1,113,220,376 1,163,703,202
Note:
Operational Boundary 730,000,000 813,000,000 959,000,000 1,058,000,000 1,123,000,000 1,174,000,000
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.
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% 1.53%
over 12 months and < 24 months 0% 35% 2.62%
over 2 years and < 5 years 0% 50% 4.80%
over 5 years and < 10 years 0% 75% 5.96%
over 10 years 10% 95% 85.09%
The maurity profile for the Council's current long-term portfolio as at 1 April 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
PWLB 5,000,000 13,000,000 20,000,000 17,500,000 5,000,000 0 50,500,000 449,000,000 0
LOBOs 0 0 0 0 0 13,000,000 25,200,000 5,000,000 0
Other 140,000 0 0 0 0 0 0 0 0
PPP/PFI Liability 5,962,576 5,962,576 14,796,923 25,664,807 65,483,599 3,361,289 0 0 0
Total 11,102,576 18,962,576 34,796,923 43,164,807 70,483,599 16,361,289 75,700,000 454,000,000 0
Percentage 1.53% 2.62% 4.80% 5.96% 9.73% 2.26% 10.45% 62.66% 0.00%