Harbours Advisory Committee

22 November 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 October 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 October 2023

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

Expenditure: Overall £76,889 (Adverse)

The main variances to the budget predictions are as follows:

Internal Charges: overspend due to anticipated Management Fee from parking for the apportioned costs for the management and operation of the car parks within the Harbour Revision Order (HRO) boundary. Forecasting on the assumption that fee will be similar to last year, but still needs to be resolved going forward.

Supplies and Services there is a 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 and Contributions, there is a shortfall in income mainly from reduced boat repair income whilst there is no mechanic in post.

Revenue Budget Income: Overall £101,011 (Favourable)

Fees and Charges, vessel related income is forecast to be on budget.

There is surplus income generated from harbour owned car parks following the introduction of a new tier 3 charging structure.

Reserve Movements

The budgeted transfer into reserves is currently predicted to be £103,222.

Lyme Regis Harbour Budget Report as at end of October 2023

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

Expenditure: Overall £32,653 (Adverse)

The main variances to the budget predictions are as follows:

Minor overspend on employee costs due to training requirements.

Overspend on repairs and maintenance for essential JCB repairs.

Third party, there is an expected overspend anticipated on contractor costs.

There has been a significant spend on ANPR incurred this year.

Revenue Budget Income: Overall £52,488 (Favourable)

Fees & charges current forecast of just over £50,000 surplus across a range of income streams, including mooring fees, boat storage, car parking and licences / rents from concessions.

Reserve Movements

The budget was set with an expected net expenditure budget of £56,726, which is funded by Dorset Council. Current forecasts are a net cost of £36,891, so an underspend of £19,835. However, this would not go into a reserve as Lyme Regis is not yet a self-funding service. This saving will be returned to the corporate centre to offset wider Council overspends.

Weymouth Harbour – Budget Report as at end of October 2023

The Weymouth Harbour operational budget was approved with an expectation that there would be a surplus of £185,030. The net income generated from harbour owned car parks is budgeted at £531,915.

These surpluses totalling £716,945, will be transferred into the harbour reserve at the year end.

Current forecasts are given at Appendix 3. There is a budget variation expected of a surplus of £59,344.

Operational Budget Income: Overall £8,104 (Adverse)

This is an improving picture from the previous budget monitoring report. 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, however recent changes in how these visits are monitored has meant that the harbour team are able to capture and charge for more out of hours visits.

Recreational income has been affected this year with a reduced number of visiting vessels. Income is expected to be below budget but is an improving picture as the number of vessels winter berthing has increased from previous years.

Favourable variances are as follows:

Rent review for a Licence in the commercial area.

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

The harbour team have reviewed the way we charge larger visiting vessels for electricity. Infrastructure is now in place so that these vessels can be charged per unit (previously a fixed nightly fee) which will result in increased revenue.

Increased income from harbour owned car parks

Tug “Victory” under its new owner requested a temporary commercial berth in Weymouth, generating income for visiting commercial vessels.

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

Operational Budget Expenditure: Overall £20,188 (Favourable)

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.

The spend against marketing and advertising has reduced in recent years as social media marketing has been taken advantage of. For this current year an underspend is again predicted which will be reflected in future budgets forecast.

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	Likely to be completed alongside the Weymouth Quay Regeneration Project (WQRP)
CCTV installation at commercial area	£10,000	Will form part of the WQRP
Replacement trolleys on marina	£1,000
Replacement or repairs to outer harbour steps	£40,000	Survey required
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. Survey required.
Cargo stage works following relocation of fish landing quay	£51,000	Project carried forward from 2022/23. Will be considered on completion of the WQRP.
Oil Spill Provisions	£10,000	Project carried forward from 2022/23
Replace Pleasure Pier Railings	£62,790	Completed.
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 £2,579,814. 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: Low

Residual Risk: Low

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