Harbours Advisory Committee

12 June 2024

Harbours Budget Monitoring Report 2024/25

For Review and Consultation

Cabinet Member:

Cllr J Andrews, Place Commissioned Services

Local Councillor(s):

All Councillors

Executive Director:

Jan Britton, Executive Lead for Place

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

Job Title: Harbour Masters, Business Manager

Tel: 01308 423222, 01305 838423

Email:	James.radcliffe@dorsetcouncil.gov.uk, ed.carter@dorsetcouncil.gov.uk

claire.connolly@dorsetcouncil.gov.uk

Report Status: Public Choose an item.

Brief Summary: The purpose of the report is to set out the current budget forecasts and reserve balances for Bridport, Lyme Regis and Weymouth Harbours 2024/25. The financial summaries are given in the appendices.

Recommendation: To note the current budget monitoring figures for 2024/25.

Note the budget forecast 2024/25 for Bridport Harbour

Note the budget forecast 2024/25 for Lyme Regis Harbour

Note the budget forecast 2024/25 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 and objectives from the Business Plan.

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

Bridport Harbour Budget Report as at end of May 2024

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

1.2	Currently there are no variances to the budget forecast

Reserve Movements

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

Lyme Regis Harbour Budget Report as at end of May 2024

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

2.2	Currently there are no variances to the budget forecast.

Reserve Movements

No anticipated transfer to reserve at year end as Lyme Regis is still Dorset Council funded by £32,927

Weymouth Harbour

The financial picture for Weymouth continues to improve with a budgeted surplus of £838,556 to be transferred in the reserve at year end.

Dorset Councils Harbours Strategy and Business Plan, gives a 5-year financial and investment plan and will guide the future use of budgets. This has helped re-focus the priorities for the future.

The harbour reserves have been built up to enable the harbour to be financially self-sufficient. Weymouth harbour has been successful in continuing to achieve a balanced budget whilst building the ability to invest in the harbour (Strategic Goal 4).

2024/25 Budget Predictions:

At this early stage in the financial year there are no significant variances to report. There are a couple of areas worth highlighting that could have an impact on the budget, these are detailed below:

An early Easter and poor weather have impacted on visitor numbers.

Occupancy in the marina for April is lower than previous years.

Long-term sickness will require back-filling which will increase costs.

Targets will continue to be closely monitored through the year to ensure accurate and timely reporting and if required action can be taken to mitigate any shortfalls.

Weymouth Harbour Reserves:

The reserve balance carried forward is £3,595,310.

This balance is committed to carrying out a programme of works needed for maintaining and improving facilities to protect income streams and deliver on the priorities set out Dorset Harbours Strategy and Business Plan. Due to previous financial pressures, there is a back log of under investment that needs addressing.

For 2024, the intention for the harbour reserves is to split it into separate reserves. This will give better financial clarity and show where and how the reserves are committed and to better identify funds for future projects and investments. The separate reserves are as follows:

Existing asset management fund

Development and project fund

Maintenance dredging fund

Pleasure Pier fund

Emergency Contingency fund

Details of how the reserve is split is shown on Appendix 3 of this report.

Funding in these new reserves is not necessarily ringfenced. As spending fluctuates, surplus can be transferred between reserves if required.

The table below provides details of the replacement and maintenance plans for existing harbour assets over the next five years. 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.

Existing Assets – Management Plan
Category	2024	2025	2026	2027	2028
Harbour Infrastructure	£222k	£110k	£74.5k	£37k	£24k
Moorings Infrastructure	£10k	£215k	£265k	£7.5k	£0
Operational / navigation	£37.5k	£14.5k	£32.5k	£47k	£10k
Total annual spend	£269.5k	£339.5k	£372k	£91.5k	£34k

Over the next five years, significant investment in the harbour is planned, with a full programme of inner harbour marina replacement and improvement works out lined in further detail in the Business Plan.

The table below details the proposed development and projects. Where projects have not been fully costed, an estimated figure has been used and this plan will be updated as projects take shape, and costings are finalised.

Development and Project Plan
Category	2024	2025	2026	2027	2028
Building D development	£60k
Commercial Area enhancements	£150k
Commercial Area slipway and scrubbing area design	£5k
The Cove – Navigational Risk Assessment and project design	£10k
Pleasure Pier, gate, fencing and improvements	£30k
The Cove – installation	£500k
Installation of extra pontoons on Custom House Quay	£140k
Inner harbour marina design	£10k
Commercial Area slipway and scrubbing area install	£500k
Inner harbour marina installation	£500k	£500k	£500k

Once the initial costs of the improvements have been met, payments will continue to be made into replacement funds, to cover future costs.

£400,000 is committed to fund works associated with the Weymouth Quay Regeneration Project.

Financial Implications

The financial picture for all three harbours is an improving picture. Bridport and Weymouth are expected to return surpluses and Lyme Regis budget deficit is reducing.

Reserves exist for all three harbours which can be used to progress deliverables from the Business Plan.

There are however some budget risks. Poor weather and an early Easter may impact income figures. Occupancy rates on marina berths are lower than the same period last year. It is considered to be too early to predict the full year effect.

2024 will see the completion of Weymouth Quayside Regeneration Project. This will impact on budgets as we work to deliver the new service provisions and complete the finishing touches of the project.

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 & 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 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

Report Sign Off

11.1	This report has been through the internal report clearance process and has been signed off by the Director for Legal and Democratic (Monitoring Officer), the Executive Director for Corporate Development (Section 151 Officer) and the appropriate Cabinet Member(s)