Archived decisions

Contact: Adrian Thorne, ext 6409 email: [email protected]

David Evans, tel 01489 576387 email [email protected]

1. Summary

1.1 This report presents the results of the review of the River Hamble Budget which has been carried out by consultation between the Marine Director and the Devolved Finance Unit. It presents the draft revised budget for 2004/05 and the draft forward budget for 2005/06, as well as the proposed charges for 2006.

1.2 The underlying principle for both years is to produce budgets that enable the Harbour Authority to meet operational requirements within the available revenue earning capacity.

1.3 The results have been presented to the River Hamble Executive Member's Group. They are being presented to the Advisory Committee for information and will be presented to the River Hamble Harbour Management Committee in December 2004 for information. The report will then be then presented to the Executive Member for Environment for approval on 21 January 2005 as part of the budget making process.

1.4 All costs attributable to the Harbour Authority carrying out its statutory and ongoing duties on the river have been identified and built into the budget, including legislative and health and safety responsibilities, although as is to be expected at this stage of the financial year not all budgets are fully committed. A glossary of terms has been included in Appendix 4 for clarification.

1.5 The increase in the 2004/05 expenditure partly reflects the temporary arrangement up until the employment of the Marine Director, as well as the part year costs of this post. The 2005/06 budget reflects full year costs of the structure as implemented by the Marine Director.

1.6 The 2005/06 forward budget includes £68,900 under Budget Pressures. This budget is made up of the Boat Replacement Fund £14,100, £38,000 as part of a three year plan to bring the Reserves back into credit, and £16,800 for unforeseen budget pressures. These are included to allow headroom for

spend-to-save initiatives as part of the ongoing strategic development of the river. As previously reported, investment decisions will continue to be subject to a cost benefit analysis approach where appropriate.

2. Harbour Undertaking and Management of the Moorings 2004/05

2.1 The revised budget for 2004/05 for the Harbour Undertaking and Management of the Moorings, summarised in Appendix 1, shows a revised gross expenditure budget of £495,700. This is an increase on the original budget of £32,100.

2.2 The income budget also increases by £32,100 and is revised from £463,600 to £495,700. The net position on the Harbour Undertaking therefore remains unchanged at break-even.

2.3 The revised Employees' budget breakdown is as follows:

	Original Budget 2004/05 £	Revised Budget 2004/05 £
Salaries	233,300	264,500
Training	1,000	1,000
Staff Advertising/Interview Expenses	500	1,600
Other Employee Expenses	400	400
TOTAL	235,200	267,500

The increase in salaries is due to:

(i) recruitment of the Marine Director with a part-year cost;

(ii) staff being recruited on a higher rate than budgeted;

(iii) regrading of staff;

(iv) temporary staff being retained longer than planned;

(v) acting up allowances being paid for longer than planned;

(vi) increases to staff hours; and

(vii) pay in lieu of holiday to summer staff.

The increase in Staff Advertising/Interview Expenses relates to the Marine Director appointment.

2.4 Some individual Premises costs have been amended slightly in line with current spending although the bottom line remains unchanged. The breakdown is shown below:

	Original Budget 2004/05 £	Revised Budget 2004/05 £
Repair and Maintenance	1,500	1,500
Electricity (note i.)	1,200	1,000
Gas	400	400
Rent/Rates	11,000	11,200
Contribution to Visitor Centre Rent	9,000	9,000
Water/Sewerage	300	400
Fixtures, Fittings and Repairs	700	700
Cleaning (note ii.)	400	200
Burglar Alarms/Security	200	300
Refuse	200	200
TOTAL	24,900	24,900

(i) The reduction on Electricity relates to 2003/04 outturn figures.

(ii) The reduction for Cleaning, which relates to window cleaning and cleaning products, has been reduced in line with expenditure to date in the year.

2.5 The transport budget has been reduced by £500 in line with current spend. The breakdown is shown below:

	Original Budget 2004/05 £	Revised Budget 2004/05 £
Repair and maintenance/ refurbishment of boats	5,000	5,000
Vehicle Running Expense (Fuel)	6,000	6,000
Tools (inc chandlery) (note i.)	2,200	1,600
Car Allowances	2,400	2,500
Staff Travel	200	100
Insurance	1,200	1,300
TOTAL	17,000	16,500

(i) The reduction for the Tools budget reflects the 2003/04 outturn and current spending.

2.6 Office expenses have been increased by £2,800. The breakdown is shown below:

	Original Budget 2004/05 £	Revised Budget 2004/05 £
Equipment	1,800	1,800
Health and Safety	1,200	1,200
Printing and Stationery	3,500	3,500
Catering/General (note i.)	0	800
Protective Clothing	3,500	3,500
IT Charges (note ii.)	8,000	10,000
Postage	2,500	2,500
Phones	2,400	2,400
Promotional Events/Publicity/ Publications	300	300
TOTAL	23,200	26,000

(i) There was no catering allowance in the original budget, but expenditure is being incurred for refreshments at meetings and the supply of a water cooler.

(ii) The IT estimate has been increased in line with the updated equipment that has been installed at the Harbour Office. This is an estimate and the final annual cost will be confirmed as part of the year end process.

2.7 Environmental Maintenance, Public Jetties and Navigational Safety, Navigational Aids and Central Support Charges have remained at the same level as the original budget.

2.8 Environmental Maintenance covers costs relating to signage, cutting back of foliage and educational material. An example of spend this year is the cutting away of a fallen tree.

2.9 The Public Jetties and Navigational Safety budget is to cover the expense of removing hazardous objects/materials from the river and repairs and maintenance of jetties and is demand-responsive. To 1 October this financial year £2,039 has been spent/committed. An additional £5,000 has since been committed for repairs to the Warsash jetty.

2.10 Navigational Aids costs have been incurred for navigation light replacement.

2.11 The breakdown of Central Support Charges is as follows:

Devolved Finance Unit £15,000

Central Finance £5,000

Chief Executive Committee £4,000

Legal £7,000

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Total £31,000

These costs will need to be divided between the Harbour Undertaking (£27,400) and the Visitor Centre Partnership (£3,600). Transfers for these costs are undertaken at the end of the financial year.

The Devolved Finance Unit provides direct financial support and advice to the Harbour Office.

Central Finance relates to payroll, creditors and income collection.

Chief Executive Committee relates to committee administration for the various committees.

Legal is for legal advice given to the Harbour Authority by County Council lawyers.

2.12 Other Services has been reduced by £2,600; the breakdown is shown below:

(i) Legal Expenses relate to services procured directly by the Harbour Office.

(ii) Subscriptions/Memberships/Licences/Fees is increased to reflect prior year spend patterns. Examples of expenditure include conference fees, journals, British Port Association subscriptions and radio licences.

(iii) SMS Projects has been reduced as no non-contract work is anticipated this financial year.

2.13 An increase of £17,700 has been applied to budgetary pressures which is detailed below:

	Original Budget 2004/05 £	Revised Budget 2004/05 £
Harbour Revision Order/Governance (note i. and ii.)	15,000	5,500
Harbour Management System (note i. and ii.)	0	14,300
Non EU Port Waste (Catering) (note iii.)	0	2,000
Boat Replacement Fund (including engines)	22,100	22,100
Uncommitted Budget Pressures (note iv.)	0	10,900
TOTAL	37,100	54,800

(i) A significant amount of the Governance consultation costs work was undertaken last year although the budget was within 2004/05. This was exchanged for the Harbour Management System implementation which was budgeted for last year and completed this year.

(ii) Additional harbour revision order costs have been met from outside of the Hamble budget.

(iii) The additional £2,000 is the anticipated cost of an EU Directive covering port food waste.

(iv) Uncommitted budget pressures is included as an allowance for unforeseen pressures. All investment decisions will be subject to the agreed cost benefit analysis approach.

2.14 Oil Pollution response has increased by £1,300 in line with current spend. This covers membership, training and a late invoice for the oil boom deployment, which related to the last financial year.

2.15 Port Waste Management Plan costs have been reduced from £2,000 to £1,500 in line with current spend. This expected outturn covers:

(i) sewage pump-out facility;

(ii) parts and emergency call out;

(iii) emptying of battery cage; and

(iv) large river rubbish removal.

2.16 There has been no amendment to the Estuary Management Plan. This expected outturn includes:

(i) Student Fund contribution £600

(ii) Meetings £100

(iii) Student Fund Presentation £50

(iv) Education Group meetings £250

2.17 There is no change to the Hydrographic Programme. The expected outturn includes the updating of two sheets of soundings per year by ABP Mer.

2.18 The Dredging Plan budget has been revised from £8,700 to £3,000. This reflects that only work up to completion of phase 2 will be completed this year. This figure is also net of partner contributions.

2.19 CCTV costs have been estimated in line with budget. The full cost to date has been just over £76,000 which is an increase of £6,000 on the budget. The overspend is due to the requirement for additional installation work that was not planned for. The balance of this spend has been met from funds within the Crown Estate Receipts held on the balance sheet.

2.20 Income from visitors/miscellaneous has been increased from £4,200 to £10,000. This comprises:

(i) transfer in of £4,200 visitors harbour dues from the partnership;

(ii) income re: footpath maintenance of £500;

(iii) income relating to consents of £800; and

(iv) income to date of £4,500 which is general, eg towing, salvage and consent income.

2.21 Harbour dues income has increased from £320,000 to £363,400. This reflects the recalculation of mooring meterage and adjustment of income into the relevant accounting period.

2.22 Supervision Charges decrease from £93,300 to £91,900. The reasons for the reduction are:

(i) the original budget was based on 10,969 meters invoiced at a rate of £8.51;

(ii) the 2005 invoices were issued using a rate of £8.22;

(iii) period adjustments were made post-budget setting in order to reflect income in the accounting year to which it relates; and

(iv) a review of meterage has been undertaken which resulted in an increase in meterage invoiced.

2.23 Crown Estate and Other Funding reduces from £35,100 to £22,500. This £12,600 reduction is a result of Crown Estate's withdrawal of its contribution to the Assistant Harbour Master's post, which is within the salaries budget.

2.24 Rates income reduces from £11,000 to £7,900. This reflects the actual charge for the mid-stream moorings which are being collected on behalf of the Crown Estate.

3. Harbour Undertaking and Management of the Moorings 2005/06

3.1 The forward budget for 2005/06 highlights gross expenditure of £499,900 with equivalent income and is summarised in Appendix 1.

3.2 Comparisons are measured against the latest budget position, ie the revised 2004/05 budget as this reflects the most up-to-date position.

3.3 The forward Employees' budget of £277,700 is based on the establishment proposed by the Marine Director as a result of an initial assessment of shift patterns and workload following the cessation of the Deputy Harbour Master post.

The breakdown of employee costs is as follows:

	Revised Budget 2004/05 £	Forward Budget 2005/06 £
Salaries (note i.)	264,500	274,900
Training	1,000	1,000
Staff Advertising/Interview Expenses	1,600	1,600
Other Employee Expenses	400	200
TOTAL	267,500	277,700

(i) Salaries includes:

(a) the full year costs of regradings and appointments made on a higher rate than budgeted;

(b) contract extension for Assistant Office Manager; and

(c) pay awards for non-management graded staff.

3.4 The Premises costs comparison follows:

	Revised Budget 2004/05 £	Forward Budget 2005/06 £
Repair and Maintenance	1,500	1,500
Electricity	1,000	1,000
Gas	400	400
Rent/Rates (note i.)	11,200	4,000
Contribution to Visitor Centre Rent	9,000	9,000
Water/Sewerage	400	400
Fixtures, Fittings and Repairs	700	700
Cleaning	200	200
Burglar Alarms/Security	300	300
Refuse (note ii.)	200	0
TOTAL	24,900	17,500

(i) The reduction in rates payable reflects the transfer of responsibility for the payment and collection of rates to Eastleigh Borough Council relating to Dock Hereditament to Crown Estate.

(ii) Refuse costs have now been included within the Port Waste Management Plan.

3.5 The transport budget has been increased by £10,300 as follows:

	Revised Budget 2004/05 £	Forward Budget 2005/06 £
Repair and maintenance/ refurbishment of boats (inc engines) (note i.)	5,000	14,500
Vehicle Running Expense (Fuel)	6,000	6,000
Tools (inc chandlery) (note ii.)	1,600	1,900
Car Allowances (note iii.)	2,500	2,900
Staff Travel	100	200
Insurance	1,300	1,300
TOTAL	16,500	26,800

(i) Repairs and maintenance of boats now includes £9,500 that was part of the boat replacement fund under Budgetary Pressures where there is a corresponding reduction. This has been separated in order to identify maintenance from boat replacement. The remaining £5,000 covers routine maintenance of boats through the year and the winter refit.

(ii) Tools expenditure has been increased to allow for the replacement of chandlery and equipment that has reached the end of its life.

(iii) Car allowances have been increased to meet the anticipated additional travel arrangements.

3.6 Office expenses have decreased by £500 as detailed below:

	Revised Budget 2004/05 £	Forward Budget 2005/06 £
Equipment	1,800	1,800
Health and Safety	1,200	1,200
Printing and Stationery (note i.)	3,500	3,000
Catering/General	800	800
Protective Clothing	3,500	3,500
IT Charges	10,000	10,000
Postage	2,500	2,500
Phones	2,400	2,400
Promotional Events/Publicity/ Publications	300	300
TOTAL	26,000	25,500

(i) Printing and stationery has been reduced to reflect current year one-off costs.

3.7 Environmental Maintenance remains in line with the revised budget. There is a question over the ownership of the Chinese Bridge, which will need maintenance, but nothing has been included in the budget because it has been assumed that this is not an asset owned by the Harbour Authority.

3.8 Public Jetties and Navigational Safety and Navigational Aids have remained consistent with the revised budget.

3.9 Central support charges remain as per the Revised Budget and are analysed below.

Devolved Finance Unit £15,000

Central Finance £5,000

Chief Executive Committee £4,000

Legal £7,000

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Total £31,000

These costs will need to be divided between the harbour Undertaking (£27,400) and the Visitor Centre Partnership (£3,600). Transfers for these costs are undertaken at the end of the financial year.

3.10 A small reduction to Other Services has been made and is shown below:

	Revised Budget 2004/05 £	Forward Budget 2005/06 £
Legal Expenses	4,000	4,000
Subscriptions/Memberships/Licences/Fees (note i.)	1,800	2,100
Designated Person (SMS Annual Costs)	7,600	4,400
SMS - Projects (note ii.)	0	2,600
TOTAL	13,400	13,100

(i) Subscriptions/Memberships/Licences/Fees is increased. This now includes conference fees.

(ii) SMS cost have been divided between annual charges and an estimate for non-contracted services.

3.11 Budgetary pressures forward budget stands at £68,900 detailed below:

	Revised Budget 2004/05 £	Forward Budget 2005/06 £
Harbour Revision Order	5,500	0
Harbour Management System	14,300	0
Non EU Port Waste (Catering) ) (note i.)	2,000	0
Boat Replacement Fund (note ii.)	22,100	14,100
Uncommitted Budget Pressures (note iii.)	10,900	16,800
Payment to Reserves (note iv.)	0	38,000
TOTAL	54,800	68,900

(i) The costs relating to the EU directive covering port food waste is now included within Port Waste.

(ii) The boat replacement fund has been decreased following the virement of £9,500 engine maintenance into Repairs and Maintenance/Refurbishment of Boats. This provides a clearer analysis of replacement and maintenance costs. Additional planned spend of £1,500 is included for dory replacement.

(iii) An allowance of £16,800 has been included under Uncommitted Budget Pressures forward budget for spend to save initiatives as part of the ongoing strategic development of the river. All investment decisions will be subject to the agreed cost benefit analysis approach.

(iv) The reserve account on the Harbour Undertaking was in deficit of £112,126 at 31 March 2004 following the income period adjustment. Options for bringing the reserve out of deficit have been considered and the suggested approach is for the balance to be met from budget allocations over a 3 year period. £38,000 is the first year's payment to reserve. Any under spend at the end of the financial year would be used to reduce the deficit.

3.12 Oil Pollution Response reduces to £2,500 reflecting the annual contract. The prior year included one off costs for the oil boom exercise and training. No oil boom deployment is required during 2005/06.

3.13 Port Waste Management Plan costs have increased to £3,000. This includes refuse costs of £600, £1,000 general port waste management and £1,400 non-EU port food waste costs.

3.14 The Estuary Management Plan remains in line with the revised budget at £1,000. This covers meeting costs, student fund presentations, education group meetings and an allocation to the student fund.

3.15 The Hydrographic Programme remains at £5,000.

3.16 There is a budget of £3,000 for later phases of the dredging plan. The requirement for this is yet to be agreed.

3.17 An estimated £5,000 for CCTV maintenance has been included based on Cirus estimates.

3.18 £9,000 for inflation has been included. Non-management staff increments have been allowed for within the salary figures so this allows for management increases and non-staff related inflation. The RPI of 3.1% was used.

3.19 The income budget for 2005/06 stands at £499,900.

3.20 Inflation of RPI +1% (4.1%) has been applied to Harbour Dues and Supervision.

3.21 Visitor/Miscellaneous income of £6,700 comprises:

(i) transfer in of £4,200 visitors harbour dues from the partnership;

(ii) income re: footpath maintenance of £500;

(iii) income relating to consents of £800; and

(iv) general (eg salvage and towing) and consent income of £1,200.

3.22 No significant increase in Crown Estate Funding is included, but has yet to be negotiated.

4. Visitor Centre Partnership 2004/05

4.1 Discussions have been ongoing with the Crown Estate for some time in relation to the Partnership. Historic costs from previous financial years are still under discussion, however broad agreement has been reached in relation to the current and future years. As part of this process the Marine Director will be reviewing the costs charged to the Partnership, however key to financing is sub-letting the building. From 1 April 2004 this cost has become the responsibility of the Harbour Authority although the intention is to keep the Visitor account separate from the harbour dues. At this stage the costs included in both years assume no change as a worse case scenario. However on the income side the following assumptions are included:

(i) Visitors income is split 50/50 between Crown Estates and the Harbour Authority;

(ii) Sub-let income comes to the Harbour Authority; and

(iii) a Management fee is paid to the Harbour Authority by the Crown Estate (the value of the fee is still being debated, but £25,000 is included at this stage).

4.2 Appendix 2 shows the revised budget for the Visitor Centre Partnership. The budgeted net deficit has moved from £14,700 to £22,818 for 2004/05.

4.3 Total expenditure has increased from £87,000 to £87,200. Income falls from £72,300 to £64,382.

4.4 The breakdown of employee costs is as follows:

	Original Budget 2004/05 £	Revised Budget 2004/05 £
Salaries (note i.)	26,200	25,000
Training	300	300
Staff Advertising/Interview Expenses	500	400
Other Employee Expenses	100	100
TOTAL	27,100	25,800

(i) The salary costs here are based on an allocation from the Harbour Office.

4.5 Premises costs reflect changes based on current expenditure levels.

	Original Budget 2004/05 £	Revised Budget 2004/05 £
Electricity	300	300
Gas	200	200
Rent/Rates	3,700	3,700
Water/Sewerage	200	200
Fixtures, Fittings and Repairs	500	500
Cleaning (note i.)	3,200	800
Refuse	400	400
Burglar Alarms/Security	100	100
TOTAL	8,600	6,200

(i) Cleaning costs have reduced now that the service is provided in house and includes costs of provisions.

4.6 The transport budget has been reduced by £500 in line with current spend.

	Original Budget 2004/05 £	Revised Budget 2004/05 £
Tools	300	300
Staff Travel	50	100
Car Allowances (note i.)	750	200
TOTAL	1,100	600

(i) No Hamble personnel currently have a lease car.

4.7 Office expenses reflect a small increase of £300. Details are shown below:

	Original Budget 2004/05 £	Revised Budget 2004/05 £
Printing and Stationery (note i.)	500	0
Other Miscellaneous (note ii.)	0	800
IT Charges	1,000	1,000
Credit Card Facilities	500	500
TOTAL	2,000	2,300

(i) Printing and stationery is reduced in line with current spend patterns.

(ii) Other miscellaneous is the cost incurred in power washing the visitors' pontoon. This was an unbudgeted annual cost that will be budgeted for within premises for 2005/06.

4.8 Harbour dues payable to the Harbour Undertaking and Central Support Charges remain as per the original budget.

4.9 The Former Solent School of Yachting has increased by £6,000 due to a charge relating to external agents marketing fees that was negotiated by Property, Business and Regulatory Services Department. The actual charge will partly depend on the rent negotiated.

4.10 Crown Estate Rents has been increased by £500 to £5,500. This includes:

(i) lease of the Warsash Jetty of £3,000;

(ii) lease of the Hamble Landing Stage of £1,000;

(iii) £100 lease of the Upper Hamble river bed; and

(iv) 10% of visitor income on the Hamble Landing Stage and Warsash Jetty (£1,400).

4.11 The gross Visitor income remains unchanged although 50% will be paid directly to the Crown Estate. This is subject to an agreement being reached relating to the Management fee (if this did not occur both parties would need to continue negotiating). In addition there is a risk that the reduced visitor moorings could impact on the gross figure being reached.

4.12 A Management fee of £25,000 payable to the Harbour Authority by the Crown Estate has been included as discussed above.

4.13 Sub-let income has been revised down by £800 to £7,000 based on current levels.

4.14 The small amount of miscellaneous income reflects actual receipts.

5. Visitor Centre Partnership 2005/06

5.1 The treatment of the 2005/06 Visitor centre partnership is covered in paragraph 4.1.

5.2 The forward budget for the Visitor Centre Partnership highlights gross expenditure of £80,500 and income of £64,250. Net expenditure is therefore £16,250.

5.3 The breakdown of employee costs is as follows:

	Revised Budget 2004/05 £	Forward Budget 2005/06 £
Salaries (note i.)	25,000	22,900
Training	300	300
Staff Advertising/Interview Expenses	400	400
Other Employee Expenses	100	100
TOTAL	25,800	23,700

(i) The salary costs here are based on an allocation from the Harbour Office.

5.4 Premises costs reflect minor changes based on current expenditure levels.

	Revised Budget 2004/05 £	Forward Budget 2005/06 £
Electricity	300	100
Gas	200	200
Rent/Rates	3,700	4,000
Water/Sewerage	200	200
Fixtures, Fittings and Repairs	500	500
Cleaning (note i.)	800	500
Refuse	400	0
Facilities Maintenance (note ii.)	0	800
Burglar Alarms/Security	100	100
TOTAL	6,200	6,400

(i) Cleaning costs have reduced reflecting a full year's in house service.

(ii) Facilities Maintenance reflects the annual cost for power washing the visitor's pontoon and jetties.

5.5 The transport budget remains unchanged.

5.6 Office expenses reflect a fall of £800. Details are below:

	Revised Budget 2004/05 £	Forward Budget 2005/06 £
Other Miscellaneous Expenses (note i.)	800	0
IT Charges	1,000	1,000
Credit card Facilities	500	500
TOTAL	2,300	1,500

(i) Other Miscellaneous Expenses is the cost incurred in power washing the visitor's pontoon. This is now known to be an annual cost and is budgeted for within premises.

5.7 Central Support Charges remain as per the revised budget.

5.8 Former Solent School of Yachting fees has been adjusted to remove the one off £6,000 external agent fees incurred in the previous financial year.

5.9 Crown Estate Rents remain as per the revised budget.

5.10 Non-management staff increments have been provided for within the salary figures so this inflation allows for management increases and non-staff related inflation. The RPI of 3.1% was used.

5.11 Visitor and sub-let income remains unchanged from the revised budget.

5.12 A Management Fee of £25,000 has been incurred as per the revised budget.

6. Reserves 2004/05

6.1 The net expenditure on the Partnership will be transferred into the relevant reserve account.

6.2 The impact of all transfers to reserves can be seen in Appendix 3.

6.3 The deficit on the Harbour Undertaking reserve is being met from revenue over 3 years from a budgeted amount and any under spends at the end of the year.

6.4 Costs of £41,000 relating to the installation of the CCTV system have been met from Crown Estate Receipts.

6.5 The projected deficit balance at 31 March 2005 for the Harbour Authority is £102,993 while the projected deficit on the Visitor Centre Partnership is £130,589.

6.6 Interest charged or received on reserve balances has been estimated at the monthly average 7 day rate less 0.5%. This ranges from 3.35% to 4.18% through the year.

6.7 The third Crown Estate receipt, (£100,000), will have been received from Crown Estates for the sale of piles. CCTV expenditure met from the capital receipts is £41,000, giving a total projected balance on capital receipts of £270,424 as at 31 March 2005.

6.8 The total projected balance on reserves at 31 March 2005 is a surplus of £36,842.

7. Reserves 2005/06

7.1 The effect of the projected deficit on the Visitor Centre Partnership in 2005/06 and the fourth capital receipt from the Crown Estate, gives a total estimated surplus balance on reserves of £175,020 at 31 March 2006.

8. Charges

8.1 Based on the budget for 2005/06, the proposed charges for 2006 are as follows:

	Current charge per metre (excl. VAT)	Proposed charge per metre (excl. VAT)
Harbour Dues	£10.35	£10.78
Supervision	£8.84	£9.20
Rates Charge (see 8.2 below)	£1.04	0

8.2 The 2005 rates charge was adjusted to £0.69. This charge is now the responsibility of the Crown Estate.

8.3 The Harbour Dues for a 10 metre boat inclusive of VAT will therefore be £126.67 (£121.61 in 2005).

8.4 This represents an increase of 4.1% (RPI +1%).

Recommendation

That this report be noted.

9092M/AT

APPENDIX 3

River Hamble Reserves - Forecast 2004/05

River Hamble Reserves - Forecast 2005/06

APPENDIX 4

GLOSSARY OF TERMS