Harbours Advisory Committee

4 December 2024

Harbour Budget and Setting of Fees and Charges 2025/26

For Recommendation to Cabinet

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.

Recommendation:

That Cabinet asks Full Council to:

Approve fees and charges for 2025/26 for Bridport and Lyme Harbours

Approve fees and charges for 2025/26 for Weymouth Harbour

Approve the budget for 2025/26 for Bridport Harbour

Approve the budget for 2025/26 for Lyme Regis Harbour

Approve the budget for 2025/26 for Weymouth Harbour

Reason for Recommendation:

The Harbours Advisory Committee is responsible for informing Cabinet on the 2025/26 budget, reserve balances and proposed fees and charges for the Bridport, Lyme Regis, and Weymouth Harbours.

Dorset Council Harbours 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.

Executive Summary: The purpose of the report is to set out the budget and the predicted balance of harbour reserves for Bridport, Lyme Regis, and Weymouth Harbours for 2025/26. This requirement includes setting fees and charges for all harbours. The financial summaries are given in the appendices

Harbour Fees and Charges:

An extensive bench marking exercise took place in 2024 when all fees and charges were benchmarked against harbours and marinas in the geographical vicinity (inside and outside of Dorset) and those who offer similar services. For 2025, price comparisons have been made in key areas to include annual recreational mooring fees, rates for visiting recreational vessels, and commercial berthing charges.

Benchmarking provides a good starting point; however, consideration also must be given to the differing facilities and services on offer and historic price increases. We need to ensure we have confidence that any price increase reflects the service provision and facilities on offer.

Corporately, Dorset Councils minimum expectation for price increases is 2.5%.

Dorset Council Harbours need to remain competitively priced, encompass rises in service costs and ensure continuous improvement in facilities.

In 2024, most harbour fees increased between 5% and 7.5%, which was an above inflation increase.

For all three harbours, the recommendation for 2025/26 fees and charges, in general terms, is an increase of 2.5%.

Variations for all harbours will occur based on the rounding up or down of fees to ensure prices are clear and easy to process.

The income forecast for the next five years detailed in the Business Plan has been based on the proposed fees and charges increase for 2025/26.

Following this meeting, should there be any recommended changes to the proposed increases in this report, the forecasted income figures and proposed development projects in the Business Plan will be reassessed prior to formal publication.

Where there is justification for a variation in the proposed price increase of 2.5%, exceptions are given below:

Bridport & Lyme Regis
Fee	Rationale
Quayside parking at Bridport for commercial fishermen	10%	Increase to sit more in line with Lyme charges
Visiting vessel fees	0%	No increase due to already being comparably higher
Launching and slipway use	0%	No increase due to already being comparably higher
Overnight fees for launched vessels and mooring holders	0%	No increase due to already being comparably higher
Weymouth
Fee	Rationale
Vessels embarking and disembarking passengers (non berth holders)	Increase to £4.00 from £1.10 per passenger	To align the fee with comparable local harbours.

Budget Forecasts for 2025/26

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.

As detailed in the Business Plan, over the next 5 years, significant investment in the harbours is planned. For Weymouth Harbour marinas there is a full programme of infrastructure and pontoon replacement required to maintain a safe working harbour and provide high quality facilities in pursuit of strategic goal number 1.

Investment in facilities is key to protecting current and new income streams contributing to our strategic goal to be a premium destination by supporting existing and developing leisure, tourism and commercial sectors and by making significant contribution to the local and blue economy.

The Business Plan demonstrates that significant investment in the harbours over the next 5 years is possible whilst maintaining a reserve with which to look ahead to future years allowing the harbour to remain safe, legal, sustainable and economically viable.

Budgets for all three harbours have been based on the following:

Business reflecting current operational status quo.

Proposed changes to fees and charges as set out in the report are approved.

Occupancy rates for moorings and visitors remain stable.

Assumed pay award of 2%

Anticipated increases in energy costs of 5%

No inflationary increases have been applied except for index linked contracts, fuel and rates.

Bridport 2025/26 Budget Forecast

4.1	The budget summary is presented in Appendix 1.

Provisional budget set mainly using current 2024/25 budget values as base figures.

Specific uplifts applied to business rates (based on current year actuals) and pay budgets (due to pay award and increased employers NI)

Minor inflationary uplifts applied to Utility budgets and Transport budgets (Fuel and R&M)

2.5% fees and charges income uplift applied to Mooring & Boat Storage Fees

Overall, a net budget surplus of £80,130 (to be transferred to reserve).

This is a slight decrease from the current year’s budgeted surplus of £91,895 and represents increased costs.

Lyme Regis 2025/26 Budget Forecast

The budget summary is presented in Appendix 2.

A provisional £33k saving option has been put on the table to effectively bring Lyme Regis into a ‘net nil’ budget position, which would alleviate the net funding that Dorset Council General Fund currently provides to support Lyme Regis Harbour.

It is very challenging to set a realistic budget for Lyme on a net nil basis. However, this has been provisionally achieved by making two significant assumptions. An achievable uplift to the car parking income budget at Lyme, and a reduction in the dredging budget. The proposed dredging budget constitutes a significant risk going forward, as this has also been reduced by £66k due to the expected loss of Environment Agency grant income going forward. Whilst the current year forecast for Lyme indicated a near net-nil position, this is mainly because of the lack of dredging activities forecast in the year. If a regular dredge were to occur, it could prove a significant risk to achieving a net nil position (the 2023/24 outturn of ~£52k net cost is a good indicator / example)

Other element of the Lyme Budget has seen inflationary uplifts on Pay budgets (Pay Award and increased employers NI costs) and Business Rates.

A general assumption of a 2.5% increase in Fees & Charges income on boating / mooring related income.

Weymouth 2025/26 Budget Forecast

The financial picture for Weymouth is healthy and is forecast to return a surplus of £453,268. The budget summary is at Appendix 3.

The Quayside Regeneration Project will impact on aspects of the harbour budget, with the introduction of new service provisions. The financial impact of these changes has not been included in the current round of budget estimates.

A significant impact on the harbour budget for 2025/26 will be the partial closure of the car park located on the Peninsular to facilitate the repairs to walls F&G.

At the Cabinet meeting on 19th November 2024, a recommendation was made to approve an additional capital spend of £2.8 million for the repair and enhancement of Weymouth Harbour Walls E, F and G. This funding is critical to ensuring the structural integrity of the peninsula and safeguarding infrastructure essential for harbour operations and regional development. The proposal suggests funding £1.3 million from Dorset Council resources and £1.48 million from Weymouth Harbour reserves, subject to review by the Harbours Advisory Committee.

The project forms part of a larger Dorset Council initiative, supported by £6.5 million in Government funding, to drive economic regeneration in Weymouth. While the repairs are vital for operational safety and future commercial and recreational viability, this is a significant investment from the harbour reserve, and it will be necessary to consider if any risk mitigation is required, for example, spreading the contribution over three financial years in order to maintain financial stability, operational flexibility, and business plan delivery.

Due to the continued high-level involvement of the FCERM team at Weymouth, it has been proposed that an annual financial contribution of £40,000 be paid from harbour income to assist in funding the continuous work into the survey, maintenance and repair, and future flood defence planning for harbour walls across the harbour.

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 into the harbour.

The reserve is split to give clarity and show where and how the reserves are committed, ensuring sufficient funds are available for both development and existing asset maintenance.

Over the next five years, significant investment is planned, with a full programme of inner harbour marina replacement works alongside improvements and the provision of new facilities in the commercial port area.

The harbour reserves are fully committed to these works to protect current income streams and develop new opportunities.

The table below, shows the 5-year financial commitment of the Asset Management Plan and the Development and Project Plan.

Harbour Infrastructure	2025/26	2026/27	2027/28	2028/29	2029/30
Harbour Infrastructure	£145,500	£74,500	£37,000	£34,250	£55,000
Moorings Infrastructure	£215,000	£265,000	£7,500	£0	£80,000
Operational Navigational	£14,500	£32,500	£47,000	£10,000	£20,000
Total Annual spend	£375,000	£372,000	£91,500	£44,250	£155,000
Development and Project	2025/26	2026/27	2027/28	2028/29	2029/30
Pontoon installation - Cove	£500,000
Install extra pontoon CHQ	£140,000
Inner harbour design	£50,000
Slipway and scrubbing area	£500,000
Inner Harbour marina installation	£500,000	£500,000	£500,000
Total Annual spend	£650,000	£1,000,000	£500,000	£500,000	£500,000

Most of these project’s area at concept stage; full costings will continue to be worked on and updated.

Financial Implications

7.1	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 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).