Archived decisions
Hampshire County Council
River Hamble Harbour Board Item 10
1 February 2008
River Hamble Budget Report
Report of the Director of Recreation & Heritage
Contact : Ron Meekings, 01962 847096 email: ron.meekings @hants.gov.uk
1. Summary
1.1 This report presents the results of the review of the River Hamble budget which has been carried out following consultation between the Marine Director and the Devolved Finance Unit. It presents the draft revised budget for 2007/08 and the draft forward budget for 2008/09.
1.2 The underlying principle for both years is to produce budgets that enable the Harbour Authority to meet its operational requirements within the available revenue earning capacity.
1.3 The budgets are presented to the River Hamble Harbour Board for approval.
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 environmental and health and safety responsibilities. It is to be expected at this stage of the financial year when setting the revised budget that not all budgets are fully committed, but all have been reviewed and assessed in the light of the best information available at the moment.
1.5 Appendix 1, attached, sets out the detail of the original budget for 2007/08 as approved, together with the revised budget for 2007/08 and the forward budget for 2008/09.
2. Recommendation
2.1 That the budget as presented be approved by the River Hamble Harbour Board.
3. Revised Budget 2007/08
3.1 The revised budget for 2007/08, summarised in Appendix 1, shows a revised gross expenditure budget of £634,975. This is a £13,675 increase on the original budget. The income budget, however, has been revised up to £639,622 thereby generating a small surplus of £4,647 in addition to the £52,100 transfer to reserves which is already included in the forecast (see Appendix 2).
3.2 Some of the figures have been re-designated so that there is more transparency in the expenditure and income budgets. The most significant change has been in the reporting of rental costs and income which are now shown gross rather than netted off. The rents paid for the Warsash Jetty and to the Solent School of Yachting are now shown under the Premises heading rather than under Supplies and Services. The rent figure now also includes the rent payments to The Crown Estate which have previously been netted off against the income received from The Crown Estate.
3.3 Other amendments include the transfer of the £21,800 budget within the Projects heading to other budget heads, and the reallocation of £12,700 from Budgetary Pressures to other budget heads in an effort to clarify the presentation of the accounts.
3.4 There is now a separate line for the income from the Solent School of Yachting (which has been transferred from Miscellaneous Income) and Fisherman's Jetty. Harbour Dues include all dues from commercial pleasure craft, dry sailed vessels, commercial moorings, mid-stream moorings and sublets. The Crown Estate Management Fee includes all the income due from The Crown Estate some of which was previously reported under other budget heads.
3.5 More detailed comments on the variations to the original budget are included as part of Appendices 1 and 2, which provide more detail on the budget heads.
4. Forward Budget 2008/09
4.1 The forward budget for the financial year 2008/09 is also shown in Appendices 1 and 2. The proposed budget is balanced at a break even position of £668,049 and includes a contribution to the asset replacement reserve of £43,000 as previously agreed by the Harbour Board. This represents an increase in expenditure compared to the revised budget in 2007/08 of £33,074.
4.2 Most of the increase is due to staff costs which are forecast to rise by approximately 4.0% against the 2007/08 revised budget, and which include annual increments under the new HCC Remuneration and Benefits scheme, and an anticipated pay award in line with inflation. Other significant increases in expenditure are due to work on the navigation marks and patrol boats (the latter to improve longevity).
4.3 Income has also risen by £46,749 compared to the 2007/08 original budget, most of which is attributable to the revised Harbour Dues charges which will come into effect in January 2008.
5. Reserves
5.1 Appendix 3 sets out the expected position on the reserve account based on the assumptions made in compiling the budget. Estimated total reserves, excluding any interest on balances, as at 31 March 2008 are £434,888, and at 31 March 2009 £477,888. These figures include the revenue reserve, asset replacement reserve and the asset enhancement reserve for future development of harbour facilities, in line with agreed Harbour Board policy.
6. Charges for 2008
6.1 In accordance with the policy agreed by the Harbour Board in September 2007, Harbour Dues for the calendar year 2008 are increased by the Retail Price Index (RPI) to May 2007, plus a further 1%.
6.2 The forward budget for 2008/09 has been calculated on the basis of this proposed increase.
7. Impact Assessments
7.1 This report is in accordance with the budget strategy and the County Council's financial management policy. This policy applies equally to all services and ensures consistent financial management decisions across all services. The proposals outlined in this report are not considered discriminatory.
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:
1. Published works
2. Documents which disclose exempt or confidential information as defined in the Act.
TITLE LOCATION
None.
Notes to Appendix 1 and 2
1. Salary budgets have been increased in 2007/08 and 2008/09 to account for HCC Remuneration and benefits scheme, annual increments and projected pay award.
2. Budget has increased in 2008/09 to cover the cost of advertising for new seasonal coxswains.
3. The budgets for fixtures & fittings and facilities maintenance have been combined with the repairs & maintenance budget.
4. The utilities budgets have been increased to include the previously netted off charges incurred by the former Solent School of Yachting and to cover forecast inflation.
5. The budgets for the former SSY and Warsash Jetty have been transferred from supplies & services to premises.
6. The transport cost for 2008/09 have been increased to allow for the extra work required on the boats and anticipated increases in fuel charges and staff travel.
7. Increased requirement due to virement for Harbour Dues stickers previously reported under budgetary pressures.
8. Budget has been increased to fund planned work on the jetties.
9. The budget for Designated Person SMS costs has been transferred from projects to other services.
10. This budget has been reduced by viring some schemes to new specific budgets detailed in supplies and services. This budget now only holds the transfer to reserves.
11. All project budgets have now been separately identified in the supplies & services budgets detailed in appendix 1.
12. Income received for rent and utilities for the former SSY has been reclassified as specific income and vired from Miscellaneous income.
13. Harbour dues have been increased in line with inflation.
All other budget have been assessed and increased or reduced in line with the projected outturns.
