Final TMSS 2025-26 Appendix 3
Argyll and Bute Council · 20 February 2025
Back to Policy and Resources Committee — 20 February 2025 and its agenda
Text extracted from the council's PDF. Layout and reading order may differ from the original.
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Prudential and Treasury Indicators - 2025-28 Estimates Prudential indicators for prudence 1) Capital expenditure Gross capital expenditure Less Financing Net financing need (in year borrowing requirement) 2) Capital financing requirement (CFR) Total CFR at 1 April Total CFR 31 March Movement in CFR Represented by: Net in year borrowing requirement (above) Less Principal repayments and other financing movements Total 3) Authorised limit for borrowing Authorised limit for long-term liabilities Authorised limit for external debt 4) Operational boundary for borrowing Operational boundary for long-term liabilities Operational boundary for external debt 5) Gross debt and the CFR Gross debt at 31 March Total CFR at 31 March Gross debt less the CFR at 31 March Prudential indicators for affordability 6) Ratio of financing costs to net revenue stream Treasury indicators - borrowing limits 7) Maturity structure of fixed rate borrowing Upper Lower Upper Lower Upper Lower a) Under 12 months 30% 0% 30% 0% 30% 0% b) 12 months and within 24 months 30% 0% 30% 0% 30% 0% c) 24 months and within 5 years 30% 0% 30% 0% 30% 0% d) 5 years and within 10 years 40% 0% 40% 0% 40% 0% e) 10 years and above 100% 0% 100% 0% 100% 0% 8) Limits on fixed and variable rate borrowing Upper Lower Upper Lower Upper Lower a) Fixed rate 100% 0% 100% 0% 100% 0% b) Variable rate 60% 0% 60% 0% 60% 0% Treasury indicator - investment 9) Upper limit on principal sums invested for over 365 days £m £m £m 71 53 38 26 19 9 45 34 29 APPENDIX 3 2025-26 2026-27 2027-28 Estimate Estimate Estimate 21 £m £m £m 360 394 415 34 16 394 415 431 101 95 90 394 415 431 £m £m £m 293 320 341 104 98 93 402 423 439 £m £m £m 298 325 346 20 £m £m £m 321 370 401 394 415 431 -73 -45 -30 1634 21 % % % 4.9% 5.2% 5.6% £m £m £m 20 20 45 34 29 11 13 13
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APPENDIX 3 Notes to Prudential and Treasury Indicators Prudential Indicators - Prudence Affordability Prudential Indicators Ratio of Financing Costs to Net Revenue Stream Maturity Structure of Borrowing This indicator identifies the trend in the cost of capital (borrowing and other long term obligation costs), against the net revenue stream. The estimates of financing costs include current commitments and the proposals in the 2025-26 Budget Pack. These gross limits are set to reduce the authority’s exposure to large, fixed rate sums falling due for refinancing, and are required for upper and lower limits. Indicators 1 - 5 above cover the overall capital and control of borrowing prudential indicators. The authority’s capital expenditure plans are the key driver of treasury management activity. The output of the capital expenditure plans is reflected in the prudential indicators, which are designed to assist members’ overview and confirm capital expenditure plans. Within the overall framework, prudential indicators are required to assess the affordability of the capital investment plans. These provide an indication of the impact of the capital investment plans on the authority’s overall finances.