Contact: Adrian Thorne, ext 6409

1. Summary

1.1 The following decision is sought:

That the attached River Hamble Final Accounts 2002/03 be approved.

2. Reason

2.1 Annual approval of accounts.

2.2 These accounts have already been considered by the River Hamble Harbour Management Committee (27 June 2003).

3. Other Options Considered and Rejected

3.1 To take no action.

4. Conflicts of Interest Declared by the Decision Maker or a Member or Officer consulted - None.

5. Dispensation granted by the Standards Committee - Not applicable.

6. Reason(s) for the Matter being dealt with if Urgent - Not applicable.

Approved by: Date:

Councillor K B Estlin

Contact: Adrian Thorne, ext 6409

1. Introduction

The final accounts of the Harbour Authority for the year ended 31 March 2003 are being presented to the Harbour Management Committee for information. The accounts will then go to the Executive Member for Environment for approval on 23 July 2003.

Against the revised budget, the accounts show an underspend on gross revenue expenditure of £8,070, and an underspend on capital of £11,594.

Total income for the year stands at £514,460, which was £3,560 greater than expected. As previously reported in the Final Accounts 2001/02 report, the Moorings Rental and Harbour Dues accounts have been merged from 1 April 2002.

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 the account, but is currently insufficient to support the costs of the centre. The partnership account shows a loss for 2002/03 of £14,921, which is some £15,279 less than the deficit which was expected for the year. A business plan is in the process of being developed, which will enable planned investment which should lead to additional visitor income in the longer term.

Revenue Account

Appendix A shows the outturn for the Harbour Authority as a whole, and appendix B presents the outturn figures split between the harbour undertaking and visitor centre partnership accounts. Appendix E shows the visitor centre account against the revised budget for the year.

Overall, gross revenue expenditure is under the revised budget by £8,070. Appendix A shows that although there has been increased spend in areas such as employee costs and office expenses, these are more than offset by savings in other areas such as hydrographic programme costs and CCTV costs. CCTV installation has been deferred to 2003/04 as mentioned in the budget report elsewhere on the agenda.

Overall, income is above the revised budget by £3,560, despite a slight under-recovery against the budget for supervision charges of £3,927.

Visitor Income

Total income for the visitor partnership, excluding sub-let income, was £60,758. This shows an increase of visitor income of £3,628 on 2001/02 levels.

Sub-let income for the year amounted to £7,328, an increase of £4,328 against the revised budget.


Capital Expenditure

Capital expenditure is underspent against the budget of £32,000 by £11,594. Appendix C shows the actual total expenditure of £20,406 and compares spending on individual projects within the plan.

Reserve Accounts

Appendix D shows the movements on the reserve accounts.

As mentioned earlier, from 1 April 2002, the Moorings Rentals reserve has been merged with the Harbour Dues reserve. The cumulative balance carried forward after interest is £182,490.

The Crown Estate Partnership reserve was set up to deal with the financing of the visitor facilities. At present the cumulative deficit on these facilities of £99,703 is being met from capital receipts of £100,000pa from Crown Estates.

Interest of £4,452 has been credited to the Harbour Dues reserve account while interest of £2,849 has been charged to the Crown Estate Partnership reserve account due to the deficit on that account.

The total balance on reserves carried forward, including net interest of £1,603 and the capital receipt of £100,000 is £182,787.

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

8049App/AT

Appendix A

2002/03 Revenue Expenditure

Appendix B

2002/03 Final Accounts - Revenue Statement

Appendix C

Capital Programme 2002/03

Appendix D

Reserves 2002/03

Notes

1. From 1 April 2002 the Harbour Dues Reserve account incorporated the balance on the Moorings Rentals Reserve account.

2. The deficit on the Crown Estate Visitor Partnership can be covered by the Capital receipt for the time being. However, in the long run, the first call on any future surplus on the Partnership operation should be to pay off this deficit.

Appendix E

Visitor Partnership - Revenue Statement 2002/03

8049/AT

Contact: Adrian Thorne, ext 6409

2. Introduction

1.1 The final accounts of the Harbour Authority for the year ended 31 March 2003 are being presented to the Harbour Management Committee for information. The accounts will then go to the Executive Member for Environment for approval on 23 July 2003.

1.2 Against the revised budget, the accounts show an underspend on gross revenue expenditure of £3,970, and an underspend on capital of £11,594.

1.3 Total income for the year stands at £518,560, which was £7,660 greater than expected.

1.4 Expenditure relating to the partnership arrangements with the Crown Estate has been charged to the Crown Estate partnership reserve, set up in 2001. From 1 January 2002, visitor income has been credited to the account, but is currently insufficient to support the costs of the centre. The partnership account shows a loss for 2002/03 of £19,021, which is some £11,179 less than the deficit which was expected for the year. A business plan is in the process of being developed, which will enable planned investment which should lead to additional visitor income in the longer term.

2. Revenue Account

2.1 Appendix A shows the outturn for the Harbour Authority as a whole, and appendix B presents the outturn figures split between the harbour undertaking and visitor centre partnership accounts. Appendix E shows the visitor centre account against the revised budget for the year.

2.2 Overall, gross revenue expenditure is under the revised budget by £3,970. Appendix A shows that although there has been increased spend in areas such as employee costs and office expenses, these are more than offset by savings in other areas such as central support charges and CCTV costs. CCTV installation has been deferred to 2003/04 as mentioned in the budget report elsewhere on the agenda.

2.3 The premises cost overspend relates to payment of rates on Crown Estate moorings. Since the accounts have been closed, it is being investigated whether the appropriate amount can be recovered from Crown Estates. This may result in a credit to the Harbour Authority in 2003/04.

2.4 The expenditure charged to the visitor centre for lease costs includes £42,000 for the lease of the visitor centre and £3,791 for lease of the river bed.

2.5 The overspend of £9,612 on office expenses relates to expenditure on promotional activities of £13,469. This reflects the cost of public consultation and promotion of the proposed Mooring Strategy plan (including boat show expenses).

2.6 Overall, income is above the revised budget by £7,660, despite a slight under-recovery against the budget for supervision charges of £3,927.

3. Visitor Income

3.1 Total income for the visitor partnership, excluding sub-let income, was £60,758. This shows an increase of visitor income of £3,628 on 2001/02 levels.

3.2 Sub-let income for the year amounted to £7,328, an increase of £4,328 against the revised budget.

4. Capital Expenditure

4.1 Capital expenditure is underspent against the budget of £32,000 by £11,594. Appendix C shows the actual total expenditure of £20,406 and compares spending on individual projects within the plan. Expenditure relates to the implementation of the Safety Management System.

5. Reserve Accounts

5.1 Appendix D shows the movements on the reserve accounts.

5.2 As mentioned earlier, from 1 April 2002, the Moorings Rentals reserve has been merged with the Harbour Dues reserve. The cumulative balance carried forward after interest is £186,590.

5.3 The Crown Estate Partnership reserve was set up to deal with the financing of the visitor facilities. At present the cumulative deficit on these facilities is £103,803.

5.4 Interest of £4,452 has been credited to the Harbour Dues reserve account while interest of £2,849 has been charged to the Crown Estate Partnership reserve account due to the deficit on that account.

5.5 The total balance on reserves carried forward, including net interest of £1,603 and the capital receipt of £100,000 is £182,787.

6. 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

2002/03 Revenue Expenditure

Appendix B

2002/03 Final Accounts - Revenue Statement

Appendix C

Capital Programme 2002/03

Appendix D

Reserves 2002/03

Notes

2. From 1 April 2002 the Harbour Dues Reserve account incorporated the balance on the Moorings Rentals Reserve account.

Appendix E

Visitor Partnership - Revenue Statement 2002/03