Archived decisions

Contact: Ron Meekings ext: 7096 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 2008 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 2008 with the 2007/08 revised budget.

1.3 In summary, the Harbour Undertaking has made a surplus of £6,812 to be added to the reserves. Overall income was £33,171 below budget but this was offset by significant savings on transport and supplies and services costs which were carefully managed to ensure that a draw on reserves would not be required.

2 Recommendation

2.1 That the River Hamble Harbour Board approves the report.

3. Harbour Undertaking and Management of the Moorings

3.1 In 2007/08, the Harbour Undertaking budget was set to make a surplus of £4,647, but a revenue surplus of £6,812 was achieved.

This is broken down as follows:

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

3.3 Explanations for significant variations against budget for relevant categories of expenditure and income are provided in Appendix 1B.

3.4 The surplus of £6,812 is transferred to reserves in addition to the planned transfer to the Asset Replacement Reserve of £52,100.

4. Reserves

4.1 Total reserves for the River Hamble were £463,388 at 31 March 2008.

4.2 The movement in reserves for 2007/08 is detailed in Appendix 2. Based on the 2008/09 budget, an adverse variance of 5% in either income or expenditure would create a call on the revenue reserves of £33,000.

4.3 The Asset Enhancement Reserve is the balance of the receipt from the sale of the midstream mooring piles to The Crown Estate. The Asset Replacement Reserve is designed to be adequate to fund a 25 year replacement programme of all Harbour assets.

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

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 managed, resulting in significant savings during the year to reduce the impact of income levels being lower than anticipated.

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.

APPENDIX 1A

HARBOUR UNDERTAKING

APPENDIX 1B

HARBOUR UNDERTAKING

Explanation of variation against budget

1 Income

	Revised Budget 2007/08 £	Outturn 2007/08 £	Variance Under/ (-) Over 2007/08 £
Visitor/Miscellaneous (note (i))	27,000	12,787	14,213
Harbour Dues	524,822	518,599	6,223
The Crown Estate & Other Funding (ii)	87,800	75,065	12,735
TOTAL
	639,622	606,451	33,171

(i) There was a shortfall on Miscellaneous income of £14,213, partly due to lower than expected visitor income and a prudent allowance for the income payable to The Crown Estate.

(ii) Income from The Crown Estate for managing the mid-stream moorings was lower than budgeted, due to a prudent estimate of the sum due from The Crown Estate for the management agreement which had not been finalised when the 2007/08 accounts were closed.

2 Employees

	Revised Budget 2007/08 £	Outturn 2007/08 £	Variance Under/ (-) Over 2007/08 £
Salaries (i)	358,400	355,709	2,691
Training	3,300	3,745	-445
Staff Advertising and Interview Expenses (ii)	2,000	200	1,800
Other Employee Expenses	300	85	215
TOTAL	364,000	359,739	4,261

(i) Underspend on Salaries was due to an over estimate in the costs of pay and benefits.

(ii) Advertising and interview expenses budget is dependent on the number of vacancies to be filled in the year.

3 Premises

	Revised Budget 2007/08 £	Outturn 2007/08 £	Variance Under/ (-) Over 2007/08 £
Premises Repairs (i)	3,500	1,712	1,788
Electricity (ii)	3,000	2,221	779
Gas (ii)	1,000	1,285	-285
Rent/Rates (iii)	57,775	52,923	4,852
Water/Sewerage (ii)	1,400	517	883
Cleaning	800	413	387
Burglar Alarms/Security	200	459	-259
TOTAL	67,675	59,530	8,145

(i) The repairs and maintenance budget was set aside for unexpected contingencies, and was not fully required during 2007/08.

(ii) Electricity and water charges were less than anticipated due to charges incurred based on the suppliers' estimated readings. Gas prices were higher than anticipated due to the increased prices levied by the gas company.

(iii) Rates expenditure was on target, but rent charges to Crown Estates were lower than budget which was based on a prudent estimate of the outcome of the proposed management agreement.

4 Transport

	Revised Budget 2007/08 £	Outturn 2007/08 £	Variance Under/ (-) Over 2007/08 £
Repairs and Maintenance (i)	16,500	11,801	4,699
Vehicle Running Expenses (ii)	7,000	2,282	4,718
Tools (iii)	2,200	1,893	307
Car Allowances/ Staff Travel (iv)	5,300	3,021	2,279
Insurance	1,400	1,400	0
TOTAL	32,400	20,397	12,003

(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 expenses are predominantly fuel costs.

(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 was a marked reduction in the number of journeys made.

5 Supplies and Services

	Revised Budget 2007/08 £	Outturn 2007/08 £	Variance Under/ (-) Over 2007/08 £
Office Expenses (see 5.1)	31,600	34,400	-2,800
Environmental Maintenance (i)	2,500	1,109	1,391
Public Jetties & Navigational Safety (ii)	9,000	6,073	2,927
Central Support Charges (see 5.2)	31,800	45,848	-14,048
Other Services (see 5.3)	14,700	8,094	6,606
Transfers to Reserves (see 5.4)	52,100	52,100	0
Port Waste Management Plan (iii)	3,000	400	2,600
Dredging Plan (iv)	3,000	0	3,000
Oil Spill Response	6,500	6,449	51
Estuary Management Plan (v)	1,000	0	1,000
Hydrographic Programme	5,000	5,000	0
CCTV	3,000	500	2,500
Inflation Provision	7,700	0	7,700
TOTAL	170,900	159,973	10,927

(i) Environmental maintenance is a reactive budget to fund signage, cutting back of foliage and educational material.

(ii) Public Jetties and navigational safety is also a reactive budget, and includes costs for the repair and maintenance of the jetties.

(iii) Port Waste Management was underspent by £2,600 due to the programme being delayed until 2008/09. This 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.

(iv) The dredging plan budget was not used in 2007/08 due to the third phase of the Dredging Plan not being approved in time by DEFRA.

(v) The Estuary Management Plan budget was not required in 2007/08

5.1 Office Expenses

	Revised Budget 2007/08 £	Outturn 2007/08 £	Variance Under/ (-) Over 2007/08 £
Equipment	1,800	793	1,007
First Aid Supplies/Health and Safety (i)	2,000	2,184	-184
Printing and Stationery (ii)	5,000	6,196	-1,196
Catering/General (iii)	700	1,037	-337
Protective Clothing (iv)	3,000	4,897	-1,897
IT Charges (v)	11,000	12,695	-1,695
Postage (vi)	3,000	2,370	630
Telephones	2,400	2,271	129
Promotional Events/ Publicity/Publications	1,200	917	283
Credit Card Charges	1,500	1,040	460
TOTAL	31,600	34,400	-2,800

(i) First Aid Supplies/Health and Safety costs include fire extinguishers and servicing, safety equipment and first aid supplies.

(ii) Printing and stationery costs include photocopy rental, County Supplies stationery and Hampshire Printing Services. The overspend is due mainly to higher than anticipated printing costs.

(iii) Catering/general costs include refreshments for meetings, water cooler and general costs e.g. disposal of confidential waste.

(iv) Protective clothing is used to provide uniforms and safety wear for the staff. The overspend is due to the clothing for the new season arriving in March.

(v) The IT charges include Hampshire Public Services Network (HPSN) charges and IT2000 charges (including dial up). An additional £1,200 was spent on safety management software for the HMS system.

(vi) Postage was £630 underspent due to information being sent electronically where possible.

5.2 Central Support Charges

	Revised Budget 2007/08 £	Outturn 2007/08 £	Variance Under/ (-) Over 2007/08 £
Devolved Finance Unit	15,000	15,600	-600
Central Finance	5,600	5,676	-76
Chief Executive Committee & Legal (i)	11,200	24,572	-13,372
TOTAL	31,800	45,848	-14,048

(i) These costs include regular administrative support for Management Committee and Harbour Board meetings, meeting room rental and legal advice, as well as other ad hoc support such as the legal costs associated with the Freedom of Information issues.

5.3 Other Services

	Revised Budget 2007/08 £	Outturn 2007/08 £	Variance Under/ (-) Over 2007/08 £
Legal Expenses (i)	4,000	0	4,000
Subscriptions/Memberships / Licences	2,100	2,094	6
Designated Person (ii)	8,600	6,000	2,600
TOTAL	14,700	8,094	6,606

(i) Legal costs are demand led and therefore an estimate is included in the budget to cover any need that arises for external legal advice. In 2007/08 no call on this budget was required.

(ii) The costs for the Designated Person were less than anticipated.

5.4 Transfers to Reserves

	Revised Budget 2007/08 £	Outturn 2007/08 £	Variance Under/ (-) Over 2007/08 £
Payment to Reserve (i)	52,100	52,100	0
TOTAL	52,100	52,100	0

(i) The budgeted contribution to reserves was achieved.

APPENDIX 2

RIVER HAMBLE RESERVES - 2007/08