Harbours Advisory Committee

20 September 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: James Radcliffe (Bridport and Lyme Regis), Ed Carter (Weymouth) Claire Connolly (Weymouth),

Title:	Harbour Masters, Business Manager

Tel:	01305 838423, 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 July 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.

Bridport Harbour Budget Report as at end July 2023

The Bridport Harbour budget forecast figures are given at Appendix 1.

Expenditure overall – £96,334 (A)

The main variances to the budget predictions are as follows:

Internal Charges – Overspend due to ‘Management Fee’ from Parking for the apportioned costs for the management and operation of the Car Parks within the HRO boundary. Forecasting on the assumption that fee will be similar to last year, but still needs to be resolved going forward.

Supplies & Services – Significant overspend mainly due to forecasting costs for ‘1 and a half’ dredges during the financial year. This is from the March/April 2023 dredge, and forecasting a full dredge in March 2024.

Reimbursement & Contributions – Shortfall of income mainly from a lack of boat repair income whilst there is no mechanic in post

Revenue Budget Income – £119,114 (F)

Fees & Charges – Boat related income is forecast pretty much as on budget. Surplus income mainly from HRO car parks following new tier 3 charging.

Reserve Movements

The budgeted transfer to reserves is currently predicted to be £101,880.

Lyme Regis Harbour Budget Report as at end of July 2023

The Lyme Regis budget forecast figures are given at Appendix 2.

Expenditure overall – £23,862 (A)

The main variances to the budget predictions are as follows:

Third Party – Overspend anticipated on contractor costs. Significant spend on ANPR incurred this year.

Revenue Budget Income – £52,870 (F)

Fees & Charges – Forecasting just over £50k surplus income across a range of income streams, including mooring fees, boat storage, car parking and licences / rents from concessions.

Reserve Movements

Overall a net expenditure budget of £56,726 (funded from DC), and it is forecasted a net cost of £27,718, so an underspend of £29,008. However, this would not go into a reserve as Lyme is not yet a self funding service, so will be returned to the corporate centre to offset wider Council overspends.

Weymouth Harbour – Budget Report as at end of July 2023

The budget forecast figures are given at Appendix 3. The Weymouth Harbour operational budget was approved with an expectation that there would be a surplus of £185,030. Current predictions are that this surplus will be £178,051.

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 £531,915, current predictions are that this surplus will be £571,066.

Both surpluses will be transferred to the harbour reserve at the end of the financial year

Operational Budget Income: Overall £20,165 (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.

Income from visiting fishing vessels is lower than previous years.

Recreational income has been affected this year with a reduced number of visiting vessels. Income is expected to be below budget; this includes income from visiting overnight vessels and the slipway.

Favourable variances are as follows:

Rent review for Licence in the commercial area.

Income from temporary berthing in the marina has exceeded budget expectations.

Income from annual marina berths is currently on track for budget expectations.

Operational Budget Expenditure: Overall £13,186 (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 on current spend, there is likely to be a slight overspend.

The cost for Business rates is lower than previous years which is the outcome of recent reviews.

It is expected that there will be a saving against the cost of seasonal staff.

Asset Management Plan Improvements Weymouth Harbour Budget:

The programme of works below 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.

Careful consideration of the harbour’s assets continues to be key to the financial success of the harbour and to protect and improve income. This is under constant review both in the short and long term to review how assets are being used, to maximise the life of items and to review the priorities.

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	£40,000
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	Installation works commenced July
Works to be funded by revenue budget	£213,040
Maintenance Dredging	£50,000
Pontoon replacement for visiting vessels	£356,987	Works completed July
Works to be funded from reserves	£406,987

Weymouth Harbour Reserves Summary

Revenue reserve: the forecast for the year end is £2,559,621. 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.

From this reserve there is an annual contribution for maintenance dredging and an annual contribution to a reserve set up to fund future structural works for the Pleasure Pier.

In the 2023/24 financial year, it has been agreed that a further contribution of up to £400,000 will be set aside to assist in the Quay Regeneration Project.

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. Below is the Decision wheel which shows the impacts of this proposal on the aims of our Natural Environment, Climate & Ecology Strategy.

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 Bridport Harbour Financial Summary

Appendix 2 Lyme Regis Harbour Financial Summary

Appendix 3 Weymouth Harbour Financial Summary

Background Papers None