Archived decisions

Contact: Tom Niedrum, ext 6931 email: [email protected]

David Evans, tel 01489 576387 email: [email protected]

1. Summary

1.1 The final accounts of the Harbour Authority for the year ended 31 March 2007 are being presented to the River Hamble Harbour Management Committee for consideration and the River Hamble Harbour Board for approval.

1.2 This report compares the River Hamble income and expenditure at 31 March 2007 with the revised 2006/07 budget.

From 1 April 2006, the Visitor Partnership between the Harbour Authority & Crown Estate ceased and was merged into the Harbour Undertaking. As reported previously, the deficit of the Partnership Reserve was written off as at 31/03/06. All income and expenditure budget headings now relate solely to the RH Harbour Undertaking.

1.3 In summary, the Harbour Undertaking has made a surplus of £65,577 to add to reserves. Whilst overall income is in line with budget (subject to some significant variations on individual income budgets), there have been significant savings on staffing and transport costs, as well as savings on supplies & services.

2. Recommendation

That the River Hamble Harbour Board approves the Report.

3. Harbour Undertaking and Management of the Moorings

3.1 In 2006/07, the Harbour Undertaking budget was set to make a surplus of £21,100. In fact it has made a revenue surplus of £65,577 exclusively through careful management of expenditure.

This is broken down as follows:

3.2 A full breakdown of expenditure and income is shown in Appendix 1A.

3.3 Explanations for the variation against budget for each category of spend/income are provided in Appendix 1B.

3.4 The surplus of £65,577 is transferred to reserves, which will further help reduce the deficit, over and above the planned £38,000 transfer under budgetary pressures.

4. Reserves

4.1 Total Reserves for the River Hamble stood at £378,142 at 31 March 2007. This comprises:

4.2 The movement in the year on the Reserves is detailed in Appendix 2A.

4.3 The deficit balance on the Harbour Undertaking has been eliminated sooner than anticipated when the three year plan was devised to bring reserves back into credit, which was reported last year.

4.4 Interest charged or received on reserve balances has been based on the average 7 day rate throughout the year, less 0.5%.

4.5 The 5th Capital receipt of £100,000 was received from The Crown Estate for the sale of the mooring piles. The net cost of £141,829 for the replacement Harbour Master's Jetty (after taking in to account external contributions to dredging of £50,564) was met from the accumulated capital receipts, giving a balance on the Capital Receipt Reserve of £240,738.

4.6 The third year's transfer to the boat replacement fund from revenue has resulted in a balance of £41,762 on this reserve whilst the Fishermen's Jetty Reserve first mentioned in the 2005/06 final accounts report has been closed upon final settlement of the construction costs and the receipt of the external funding. The balance (£2,647) has been transferred to the Harbour Undertaking reserve with future income and costs being dealt with via a revenue holding account.

4.7 The future policy on the planned use of the Reserve, and on the future level of contribution from the revenue account was considered and agreed by the Harbour Board at its last meeting. The opening balances of the new reserves, under this policy, are shown in Appendix 2B.

5. Impact Assessments

5.1 This report is a formal position statement only and has not been subject to an equalities impact assessment.

6. Conclusion

6.1 This report shows that the finances of the River Hamble Harbour Authority are in a healthy state, with expenditure being well controlled, resulting in significant savings during the year. Previous deficits have now been cleared and the reserves are at an appropriate level.

APPENDIX 1A

HARBOUR UNDERTAKING

APPENDIX 1B

HARBOUR UNDERTAKING

Explanation of variation against budget

1 Income

(i) There was a shortfall on Miscellaneous income of £4,410. This was, for the most part, due to lower than expected visitor income.

(ii) Income from the Crown Estate for managing the mid-stream moorings was higher than budgeted, mainly as a result of increased volumes of sub-letting.

2 Employees

(i) Underspend on Salaries was due to one post being vacant for part of year.

(ii) Full training budget not required in year.

(iii) Advertising and expenses budget dependent on number of vacancies to be filled in year.

3 Premises

(i) The repairs and maintenance budget was set aside for unexpected contingencies, and was not required during 2006/07.

(ii) Electricity and water charges were less than anticipated. Due to problems with Southern Water linking to SAP, there is a backlog of water/sewerage charges to be posted.

(iii) Rates expenditure higher than anticipated due to revised rates assessment, and the revised assessment being backdated to April 05.

4 Transport

(i) Repairs and Maintenance covers the ongoing repair and maintenance of the boats. Costs incurred included engine replacement and servicing, propeller replacement, lift out/lift in of launches and antifouling.

(ii) Vehicle running is predominately fuel costs. Savings have occurred from newer, more economical engines and economical speeds used during patrols.

(iii) Tool costs also covers chandlery such as rope and fenders.

(iv) Car allowances also includes staff travel i.e. rail, mileage and parking costs. There has a marked reduction in the number of journeys made.

5 Supplies and Services

(i) Environmental maintenance is a reactive budget to fund signage, cutting back of foliage and educational material. Savings resulted mainly from staff vacancies.

(ii) Public Jetties and navigational safety was also underspent (£1,006) and included costs for the repair and maintenance of the jetties.

(iii) Under spend against budget due to reversal of creditor raised in 2004/05, for supply of CCTV equipment.

(iv) Port Waste Management was underspent by £1,468. The budget, which is demand led, was set up to cover:-

· Sewage pump out facilities,

· Parts and emergency call out,

· Emptying of battery cage,

· Refuse Collection,

· Large river rubbish removal, and

· Disposal of non-EU food waste.

(v) The Estuary Management Plan budget was not required in 2006/07

(vi) Hydrographic consultancy was in line with budget and covers the cost of ABP carrying out hydrographic surveys on two sheets of soundings on the River each year (nine sheets altogether, which are surveyed on a rolling programme).

5.1 Office Expenses

(i) Equipment costs were £233 less than anticipated.

(ii) First Aid Supplies/Health and Safety costs (£1,234) includes fire extinguishers and servicing. It also covers safety equipment and first aid supplies.

(iii) Printing and stationery costs (£3,259) include photocopy rental as well as County Supplies and Hampshire Printing Services.

(iv) Catering/general costs of £848 includes refreshments for meetings, water cooler and general costs e.g. disposal of confidential waste.

(v) Protective clothing (£1,148) was used to provide uniforms and safety wear for the staff.

(vi) The IT costs include Hampshire Public Services Network (HPSN) charges and IT 2000 charges (including dial up).

(vii) Postage was £302 overspent. This is the result of changes to postal charges.

(viii) Telephone charges are now included under IT Charges, and were lower than anticipated.

5.2 Central Support Charges

(i) These costs include administrative support for Management Committee and Harbour Board meetings, meeting room rental and legal advice.

5.3 Other Services

(i) Legal costs are demand led and are therefore an estimate is included in the budget to cover any need that arises for external legal advice.

(ii) Subscriptions/Memberships/Licences included the British Ports Association subscription and radio licences.

5.4 Budgetary Pressures

(i) Cost of Navigational Approach work completed under budget.

(ii) Harbour Dues Set Up costs included new signage and initial purchase of Harbour Dues stickers, and were slightly less than originally anticipated.

5.5 Transfers to Reserves

(i) Payment to reserve is part of the three year plan to eliminate deficit on Harbour Undertaking Reserve.

(ii) Payment to Boat Replacement is an agreed contribution to reserves.

APPENDIX 2A

APPENDIX 2B