Harbours Advisory Committee

12 June 2024

Harbours Year End Budget Report 2023/24

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 year end actuals and the reserve balances for Bridport, Lyme Regis and Weymouth Harbours at the end of financial year 2023/24. The financial summaries are given in the appendices.

Recommendation: To note the year end budgets figures for 2023/24.

Note the 2023/24 end of year actuals for Bridport Harbour

Note the 2023/24 end of year actuals for Lyme Regis Harbour

Note the 2023/24 end of year actuals 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

1.1	Bridport Harbour budget and year end actuals are given at Appendix 1.

1.2	Expenditure Overall - £102,593 (A)

1.3	The main variances to budget are as follows:

Overspend on internal expenditure relating to Car Parks management fee paid to Parking services. Although this has caused an overspend on this line, it is more than offset by surplus parking income (explained below). The budget rebased in the current year to reflect recent actuals.

Overspend on pay due to slight excess on budgeted hours, pay award in excess of originally anticipated & budgeted amount, and training costs.

Premises (utilities, rents, rates etc) come in almost on budget.

Minor overspend on transport costs mainly associated with Vehicle Fuel, and Vehicle R&M (repairs & maintenance) costs

Significant overspend on Supplies & Services mainly caused by one and a half dredges carried out during the financial year (March/April 2023, and March 2024).

Overspend on Third Party contractor costs – nothing specific but multiple works including pontoon works, harbour chain, clean ups after storm etc.

1.4	Revenue Budget Income - £57,366 (F)

Saving on MRP budget – this is now accounted for centrally and budget rebased for current year and going forward.

Minor surplus income from Harbour customer memorials

Significant surplus income caused primarily due to increased car park revenue following introduction of Tier 3 charges. Boating / Mooring related income mainly on budget.

1.5	Reserves Movements

Overall Bridport Harbour generated a net surplus of £33.9k, significantly below the originally budgeted surplus of £79.1k, but this is mainly because the Harbour has had to absorb the cost of one and a half dredges during the 2023/24 financial year. It is anticipated that the dredging for 2024-25 will occur within the financial year.

£33.9k surplus added to the Bridport Harbour ringfenced reserve to give a year end closing balance of £127.1k

The Transfer to reserves will be £33,872

Reserve balance £127,121

2	Lyme Regis Harbour

2.1	Lyme Regis Harbour budget and year end actuals are given at Appendix 2

2.2	Expenditure Overall - £23,458 (A)

2.3	The main variances to budget are as follows:

Overspend on pay budgets due to excess on budgeted hours, and training costs.

Saving on premises related expenditure due to a one-off rental saving in year. The charge from Lyme Regis TC will be increased going forward

Overspend on transport costs mainly due to vehicle R&M (JCB repairs)

Underspend on Supplies & Services budgets due to savings on HRO legal expenses, and slightly lower than budgeted dredging costs

Major overspend on contractors budget due to a wide range of costs, including the introduction of the automated number plate recognition (ANPR) system in the car park.

2.4	Revenue Budget Income - £40,702 (F)

EA Grant towards dredging received as per budget

Surplus income received across a broad range of income budgets, including mooring fees, hire of facilities, launching and storage Fees.

2.5	Reserves Movements

As Lyme Regis Harbour is running at a loss, the shortfall is covered by Dorset Council. This being the case, any budget underspend is returned to the corporate centre to cover some of that cost rather than contributing to the harbour reserve. There is no change to the current balance of the Lyme Regis Harbour reserve of £177k.

Reserve balance £177,000 (this amount is committed to the Harbour storage building)

Weymouth Harbour

The year end budget and actuals are given at Appendix 3. 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 budgeted surpluses of £716,945 have been transferred into the Harbour reserve.

Budget expectations have been exceeded which has resulted in a further £351,924 being transferred into reserves. Of this surplus, £146,551 will be carried forward into the new financial year to fund projects from the Asset Management Plan that were not completed, details are at paragraph 3.8. A further £400,000 will be carried forward to fund works associated with the Weymouth Quay Regeneration Project (WQRP).

Operational Budget Income: Overall £42,820 (Favourable)

The variances to budget predictions are as follows:

There has been a reduction in the number of annual commercial moorings. In 2022 Griffin Towage went into administration; GT Kingston is now the only TUG that is operating out of Weymouth under its new owner Aquatic Towage and Marine. More recently, Carlin Boat Charters have taken an additional commercial berth.

Income from pallet storage in the commercial area has reduced 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.

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

Recreational income has been affected this year with reduced number of visiting vessels. Income is up on the previous financial year but has not quite met budget expectations.

Income from slipway launches and the sale of water sports permits is down on last year but comparable against a 3-year average. There have been changes made to the way permits are purchased on-line, with the aim of capturing more sales.

Infrastructure is now in place so that larger visiting vessels can be charged for electricity per unit (previously a fixed nightly fee) which has resulted in increased revenue.

There has been an increased number of recreational vessels winter berthing in the outer harbour.

Income from annual and temporary marina berths has exceeded budget expectations.

There is increased income from harbour owned car parks.

A rent review for a Licence in the commercial area has resulted in increased income.

Operational Budget Expenditure: Overall £128,680 (Favourable)

The variances to budget predictions are as follows:

Savings have been made on Insurance costs.

There were some uncertainties when setting energy budgets for this financial year. Year-end actuals are on target for electricity and gas but there has been an increased spend on water. Some if this is attributed to the Weymouth Quay Regeneration Project.

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

There has been a planned saving made against the cost of seasonal staff.

The effects of the pay award and settlement of payments to members of staff who work bank holidays, has resulted in increased salary costs.

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

Asset Management Plan Improvements Weymouth Harbour

Below is a list of projects planned for 2023/24. It was not possible to compete all of the projects within this financial year, these will be carried forward to 2024/25.

Project	C/F	Comments
Break tank: new installation for visitor pontoons	Y	Installation on completion of the WQRP
CCTV installation at commercial area	N	Funded from WQRP
Replacement trolleys on marina	Y	Order placed in new FYR
Replacement or repairs to outer harbour steps	Y	Survey required
Replace harbour van (part exchange)	Y	Under review
Harbour management software	Y	Under review
Refurbishment of Port Traffic Signals	Y	Awaiting second quote
Cargo stage works following relocation of fish landing quay	Y	Will be considered on completion of the WQRP.
Oil Spill Provisions	Y	Under review
Replace Pleasure Pier Railings	_	Completed.
Pontoon replacement for visiting vessels	_	Completed.

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.

Weymouth Harbour Reserves Summary

Harbour Reserves year end balances of £3,595,310 are made up of following:

Revenue reserve - £3,335,184. This ringfenced balance is committed to the long-term Investment Plan outlined in the Harbours Business Plan. There is a significant financial commitment which is given in more detail in the 2024/25 budget monitoring report.

Pleasure Pier Reserves - £146,551. There is an allocation of £20,000 per annum to fund future basic structural works for the Pleasure Pier.

Dredging Reserves - £113,575. An annual commitment to enable future maintenance dredging works to be carried out.

In addition to these reserves there is also Capital Receipt Reserves of £69,033. - Anumber of assets were sold in 2022, the revenue generated has been placed in the reserve funds. These funds can be used for Capital works.

Financial Implications

All three harbours have had a financially successful year. For Bridport and Weymouth, year-end surpluses are transferred into reserves for reinvestment into the harbours.

Lyme Regis budgets are approved with the knowledge that there is a budgeted shortfall. The year-end position is favourable which means that the level of financial support from Dorset Council has reduced. The intention is to further reduce and alleviate this burden as soon as practicable.

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)