Appendix 1
Prudential Indicators
Authorised Limit for External Debt
Forward Estimates
Total Authorised Limit for
External Debt
Actual Gross External
Debt as at 31/03/07
2006/07
£m
2007/08
£m
2008/09
£m
721
775
829
519
This limit represents the total level of external debt (and other long term liabilities, such as
finance leases) the council is likely to need in each year to meet all possible eventualities
that may arise in its treasury management activities.
Operational Boundary for External Debt
Total Operational
Boundary for External
debt
Actual Gross External
Debt as at 31/03/07
2006/07
£m
2007/08
£m
2008/09
£m
621
675
729
519
This limit reflects the estimate of the most likely, prudent, but not worse case, scenario
without the additional headroom included within the authorised limit. The operational
boundary represents a key benchmark against which detailed monitoring is undertaken
by treasury officers.
1
Prudential Indicators for Treasury Management
Limits on Interest Rate
Exposure
Upper Limit on Fixed
Interest Rate Exposure
Upper Limit on Variable
Interest Rate Exposure
Current exposure to
variable rate
2006/07
2007/08
2008/09
%
100
%
100
%
100
50
50
50
0
10.4
5.5
All Years
Maturity structure for fixed
rate borrowing
Upper
Limit
Lower
Limit
Under 12 months
12 and within 24 months
24 months and within 5 years
%
50
50
50
%
0
0
0
Current
Maturity
Profile
%
5.26
0.11
0.82
5 years and within 10 years
10 years and above
50
100
0
40
8.63
85.18
30
0
In addition, the following
local limits will apply:
Variable rate debt maturing
in any one year
Limits on Long-Term Investments
Upper limit for
investments of more than
364 days
Current total investment in
excess of 364 days
2006/07
£m
2007/08
£m
2008/09
£m
15
15
15
10
10
10
Comparison of Net Borrowing and Capital Financing Requirement
In order to ensure that, over the medium term, net borrowing will only be for a capital
purpose, the council should ensure that the net external borrowing does not, except in the
short term, exceed the total of the capital financing requirement in the preceding year plus
the estimates of any additional capital financing requirement for the current and the next two
financial years. This forms an acid test of the adequacy of the capital financing requirement
and an early warning system of whether any of the above limits could be breached.
2
Comparison of Net Borrowing and CFR
Date
07/04/2006
14/04/2006
21/04/2006
28/04/2006
05/05/2006
12/05/2006
19/05/2006
26/05/2006
02/06/2006
09/06/2006
16/06/2006
23/06/2006
30/06/2006
07/07/2006
14/07/2006
21/07/2006
28/07/2006
04/08/2006
11/08/2006
18/08/2006
25/08/2006
01/09/2006
08/09/2006
15/09/2006
22/09/2006
29/09/2006
06/10/2006
13/10/2006
20/10/2006
27/10/2006
03/11/2006
10/11/2006
17/11/2006
24/11/2006
01/12/2006
08/12/2006
15/12/2006
22/12/2006
05/01/2007
12/01/2007
19/01/2007
26/01/2007
02/02/2007
09/02/2007
16/02/2007
23/02/2007
02/03/2007
09/03/2007
16/03/2007
23/03/2007
30/03/2007
Debt
Outstanding
£000
520,276
520,276
520,276
520,276
520,276
520,276
520,276
520,276
520,276
520,276
520,276
520,276
520,276
500,276
500,276
500,276
500,276
500,276
500,276
500,276
500,276
500,276
500,276
508,276
508,063
508,063
508,063
508,063
508,063
508,063
508,063
508,063
508,063
508,063
508,063
508,063
508,063
508,063
508,063
508,063
508,063
508,063
508,063
508,063
508,063
508,063
508,063
508,063
508,063
508,063
508,063
Temporary
Investments
£000
Net
Borrowing
£000
63,800
53,200
71,200
68,650
74,050
81,050
80,250
84,450
89,250
87,575
87,825
87,275
90,800
69,400
90,750
76,200
71,100
74,800
65,900
66,280
66,880
65,980
72,430
88,780
81,880
74,580
81,880
72,460
81,960
75,910
80,660
76,760
74,960
71,610
72,610
88,060
81,660
73,860
73,210
69,010
71,410
66,035
63,035
63,935
57,935
56,535
55,435
52,635
28,585
47,585
47,035
3
456,476
467,076
449,076
451,626
446,226
439,226
440,026
435,826
431,026
432,701
432,451
433,001
429,476
430,876
409,526
424,076
429,176
425,476
434,376
433,996
433,396
434,296
427,846
419,496
426,183
433,483
426,183
435,603
426,103
432,153
427,403
431,303
433,103
436,453
435,453
420,003
426,403
434,203
434,853
439,053
436,653
442,028
445,028
444,128
450,128
451,528
452,628
455,428
479,478
460,478
461,028
CFR
Headroom
£000
£000
481,792
481,792
481,792
481,792
481,792
481,792
481,792
481,792
481,792
481,792
481,792
481,792
481,792
481,792
481,792
481,792
481,792
481,792
481,792
481,792
481,792
481,792
481,792
481,792
481,792
481,792
481,792
481,792
481,792
481,792
481,792
481,792
481,792
481,792
481,792
481,792
481,792
481,792
481,792
481,792
481,792
481,793
481,794
481,795
481,796
481,797
481,798
481,799
481,800
481,801
481,802
25,316
14,716
32,716
30,166
35,566
42,566
41,766
45,966
50,766
49,091
49,341
48,791
52,316
50,916
72,266
57,716
52,616
56,316
47,416
47,796
48,396
47,496
53,946
62,296
55,609
48,309
55,609
46,189
55,689
49,639
54,389
50,489
48,689
45,339
46,339
61,789
55,389
47,589
46,939
42,739
45,139
39,765
36,766
37,667
31,668
30,269
29,170
26,371
2,322
21,323
20,774