Contact: Bevis Ingram, 01962 847508

1 Introduction

1.1 The final accounts of the Harbour Authority for the year ended 31 March 2002 are being presented to the Harbour Management Committee and to the Harbour Advisory Committee for information. The accounts will then go to the Executive Member for Environment for approval.

1.2 Against the revised budget, the accounts show an underspend on gross revenue expenditure of £24,009, an underspend on capital of £10,226, and sundry income achieved over budget by £15,040. In addition, income from Harbour Dues is £61 greater than expected, and income from supervision (Moorings) charges £2,559 greater than expected.

1.3 Expenditure relating to the partnership arrangements with the Crown Estate has been charged to the Crown Estate partnership reserve, set up last year. From 1 January 2002, visitor income has been credited to this account and it is expected that the deficit will start to be paid off from 2002/03 (see budget report, elsewhere on the agenda).

2 Revenue account

2.1 Appendix A shows the outturn for the Harbour Authority as a whole, and appendices B and C show the revenue statements for the harbour undertaking and moorings rentals account respectively.

2.2 Overall gross revenue expenditure is under the revised budget by £24,009. This is mainly due to small variations on individual lines. The one major variation is £16,900 on inshore rescue grants. A provision for making grants was made in previous years and also budgeted for in 2001/02. However, it was decided that some of these grants were not needed, so they have been written back to the accounts, creating a credit of £7,500.

2.3 Overall income is above the revised budget by £17,660 including miscellaneous (`sundry') income (£15,040), harbour dues (£61) and supervision charges (£2,559). Miscellaneous income includes income from visitors and this is detailed below.

3 Visitor income

3.1 Total visitor income, excluding sub lets, was £57,130. This compares with earlier years as follows:

3.2 This shows that the additional income generated by the millennium pontoons (installed Summer 2000) was £23,901 in 2001/02, the first full year of use, compared with 1999/00. Assuming this continues in 2002/03 (and this must be expected), this shows that it will not be necessary to call on the money put aside by the County Council to underwrite the costs of installing the pontoons in 2000. (The County Council agreed to contribute if additional income was less than £15,000 per annum).

4 Capital expenditure

4.1 The planned programme of capital expenditure of £52,100 was approved as part of the revised budget in November. Appendix E shows the actual total expenditure of £41,874 and compares spending on individual projects within the plan.

4.2 Wherever possible, in order to make economies, capital spending has been deferred or cut back to a minimum. This has been done without putting any project in jeopardy.

5 Reserve accounts

5.1 In 2001/02 the Harbour Authority operated three reserve accounts:

i) Harbour dues reserve

ii) Moorings rentals reserve

iii) Crown Estate Partnership

5.2 The Harbour Dues reserve is to meet capital expenditure on the statutory operations of the Harbour. The Moorings rentals reserve is to be applied for the benefit of the river and its users, facilities and the environment, and has related to the management of the moorings and visitor facilities.

5.3 From 1 January 2002, the Harbour Authority had managed the moorings on behalf of the Crown Estate. As the Crown Estate is now responsible for any capital works relating to the moorings, there is no need for a separate Moorings Rentals reserve. The stated uses of the reserve are all subsumed within the Harbour's statutory operations, so it is proposed to merge the balance on the Moorings Rentals reserve with the Harbour Dues reserve, as at 31 March 2002.

5.4 The Crown Estate partnership reserve was set up to deal with financing the Harbour Authority's part of the partnership for managing visitor facilities. Although this remains in deficit the position should be reversed in 2002/03.

5.5 Appendix D shows the movements on the reserve accounts, including the newly merged account.

Recommendation

That the Committee note the report.

Section 100 D - Local Government Act 1972 - background papers

The following documents disclose facts or matters on which this report, or an important part of it, is based and has been relied upon to a material extent in the preparation of this report.

NB the list excludes:

Published works.

Documents which disclose exempt or confidential information as defined in the Act.

TITLE FILE

None

Appendix A

2001/02 Revenue Expenditure Budgets

River Hamble Harbour Management Sub-Committee Appendix B

Final Accounts 2001/02

Revenue Statement

Harbour Undertaking

River Hamble Harbour Management Sub-Committee Appendix C

Final Accounts 2001/02

Revenue Statement

Moorings Rentals Account

River Hamble Harbour Management Sub-Committee Appendix D

Final Accounts 2001/02

Fund Statement

River Hamble Harbour Management Sub-Committee Appendix E

Final Accounts 2001/02

Capital Expenditure Statement

River Hamble Harbour Management Sub-Committee Appendix F

Final Accounts 2001/02

Crown Estate Visitor Partnership

Note

Net expenditure has been met from the Crown Estate Partnership reserve.