Harbours Advisory Committee

7 June 2023

Harbours Budget Monitoring Report 2023/24

For Review and Consultation

Portfolio Holder:	Cllr R Bryan, Highways, Travel and Environment

Local Councillor(s):	All Councillors

Executive Director:	J Sellgren, Executive Director of Place

Report Authors: Ed Carter (Weymouth) Claire Connolly (Weymouth), James Radcliffe (Bridport and Lyme Regis)

Title:	Business Manager, Harbour Masters

Tel:	01305 8382423, 01308 423222

Email:	ed.carter@dorsetcouncil.gov.uk

claire.connolly@dorsetcouncil.gov.uk

James.radcliffe@dorsetcouncil.gov.uk

Report Status: Public

Brief Summary: The purpose of the report is to set out the current budget forecasts for Bridport, Lyme and Weymouth Harbours at the end of May 2023 and the predicted balance of Harbour Reserves for 2023/24. The financial summaries are given in the appendices.

Recommendation: To note the current budget monitoring figures for 2023/24.

Note the budget forecast 2023/24 for Bridport Harbour

Note the budget forecast 2023/24 for Lyme Regis Harbour

Note the budget forecast 2023/24 for Weymouth Harbour

Reason for Recommendation: The Dorset Council Harbour Strategy, strategic goal number four is to have a balanced budget whilst building the ability for investment into the harbours. It is intended for harbours to become financially self-sufficient and be able to manage any reserves to ensure that the harbours see reinvestment to support strategic goals.

The Harbours’ budget monitoring and regular reporting to the Harbours Advisory Committee helps manage the risks of under or overspending the budget.

Weymouth Harbour – Budget Report as at end of May 2023

The budget forecast figures are given at Appendix 1. The Weymouth Harbour operational budget was approved with an expectation that there would be a surplus of £185,033. Current predictions are that this surplus will be £169,925. Surpluses will be transferred to the harbour reserve at the end of the financial year.

The Harbour Revision order clarifies the car parks which are located inside the harbour estate. The net income generated from those car parks are transferred into the harbour reserve at the year end to support the harbour asset plan and to contribute to the regeneration of the peninsula through improvements to car parks, commercial area, walls, public realm and pleasure pier. The net surplus is budgeted at £520,561, this is in line with last year’s actuals and therefore there is no variation predicted for this report.

Operational Budget Income: Overall £18,159 (A)

There is reduced income in the following areas:

Reduced number of annual commercial moorings. In 2022 Griffin Towage went into administration. The Tugs were being operated by the administrators pending a sale. GT Kingston is now being operated by Aquatic Towage and Marine and continues to operate out of Weymouth, GT Victory has been sold and does not intend to continue to berth in Weymouth.

Income from pallet storage in the commercial area will reduce due to rationalising of space.

Favourable variances are as follows:

Rent review for Licence in the commercial area.

Income from annual marina berths currently on track for budget expectations

A quiet start to the season due to poor weather may impact on revenue from leisure visitors, such as the slipway or visiting vessels. As it is early in the season, predictions have not been amended for this report.

Operational Budget Expenditure: Overall £3,051 (F)

The variances to budget predictions are as follows:

Increased insurance costs based on last year's actuals.

There were a lot of uncertainties when setting energy budgets for this financial year. Based 2022/23 actuals, energy costs could be lower than budgeted.

Asset Management Plan Improvements Weymouth Harbour Budget:

Below is a list of projects that are planned to be completed during	2023/24. The programme of works is an extract from the 25-year Harbour	Asset Management Plan. In-year projects are funded from revenue	budgets; pontoon replacement and maintenance dredging are funded from	reserves.

PROJECT	BUDGET	COMMENTS
Break tank: visitor pontoons – new installation	£7,000
CCTV installation at commercial area	£10,000
Replacement trolleys on marina	£1,000
Replacement or repairs to outer harbour steps where rowing ferry operates	£30,000
Replacement or repairs to outer harbour steps in Cove	£10,000
Replace harbour van (part exchange)	£3,000
Harbour management software	£25,000
Refurbishment of Port Traffic Signals	£3,250	Project carried forward from 2022/23
Cargo stage works following relocation of fish landing quay	£51,000	Project carried forward from 2022/23
Oil Spill Provisions	£10,000	Project carried forward from 2022/23
Replace Pleasure Pier Railings	£62,790	Project carried forward from 2022/23
Works to be funded by revenue budget	£213,040
Maintenance Dredging	£50,000
Pontoon replacement for visiting vessels	£356,987	Project carried forward from 2022/23
Works to be funded from reserves	£406,987

Weymouth Harbour Reserves Summary

Revenue reserve: the forecast for the year end is £2,914,011. This ringfenced balance is committed to the future cost of the pontoon replacement which is a significant financial commitment and essential to maintain and improve income.

Bridport Harbour Budget Report as at end May 2023

The Bridport Harbour budget forecast figures are given at Appendix 2.

Expenditure overall – no variances

The main variances to the budget predictions are as follows:

Revenue Budget Income – no variances

Reserve Movements

The budgeted transfer to reserves is currently predicted to be £102,850.

Lyme Regis Harbour Budget Report as at end of May 2023

The Lyme Regis budget forecast figures are given at Appendix 3.

Expenditure overall – no variances (F)

The main variances to the budget predictions are as follows:

Revenue Budget Income – no variances (F)

Reserve Movements

No anticipated transfer to reserve at year end as now forecasting an overspend and is still a DC funded service by £62K.

Financial Implications

The report covers the harbours’ budgets. The summary information is presented under the standard corporate headings.

The types of expenditure included within each heading are as follows:

Internal charges – this includes the “above the line” service recharges paid to Dorset Council.

Pay related costs- costs relating to staffing including basic pay, national insurance, pension contributions and training.

Premises related costs– utilities and rates, refuse, planned maintenance, surveys, response maintenance.

Transport related costs – fuel, travel and subsistence.

Supplies and services – Insurance, advertising, equipment, subscriptions, printing and stationery.

The income is made up of:

Commercial activities – income relating to annual commercial berths, visiting commercial vessels and visiting fishing vessels.

Leisure activities – marina berths, visiting yachts, use of slipway and PWC permits (PWC permits relate to Weymouth only).

Rents and licences – income relating to rental of property, vessel and operating licences.

Recoverable costs – where recharges are made to lease and licence holders for energy. Also includes electricity charged to annual berth holders and visiting vessels.

Natural Environment, Climate and Ecology Implications

The Harbours’ Budget funds items that have implications for sustainability and climate change. In utilising future budgets every effort will be made where possible to consider how carbon output can be minimised and operations made more sustainable.

Well-being and Health Implications

The Harbours’ Budgets fund items that have implications for voluntary organisations, community safety and physical activity. It is recognised that looking after the Harbour infrastructure is vital for the safe and efficient use of the Harbour for these purposes. The implications are considered for individual items when funding commitment is being approved.

Other Implications

Harbour issues are subject to regular consultation with customers, the Harbour Consultative Groups and the Harbours Advisory Committee.

The harbours’ accounts form part of the Council’s overall Statement of Accounts, which is considered and approved by the Audit Committee.

Risk Assessment

HAVING CONSIDERED: the risks associated with this decision; the level of risk has been identified as:

Current Risk: Medium

Residual Risk: Medium

The Harbours’ budget monitoring and regular reporting to the Harbours Advisory Committee helps manage the risks of under or overspending the budget. Many items of expenditure have a link to safety of customers and the general public.

Equalities Impact Assessment

There are no equalities implications arising from this report.

Appendices

Appendix 1 Weymouth Harbour Financial Summary

Appendix 2 Bridport Harbour Financial Summary

Appendix 3 Lyme Regis Harbour Financial Summary

Background Papers None