Agenda item

To consider a report of the Directors of Corporate Resources and Culture, Communities and Business Services with information on future options for the Harbour Authority.

The Board considered the report of the Directors of Culture, Communities and Business Services and Corporate Resources setting out options for discussion regarding the future management of the Harbour Authority’s finances.

Members were presented with the context and background to the report including information on how the rate of Harbour Dues had fluctuated over previous years, how reserves had been managed and how the Harbour Authority might manage its finances in future years to ensure sustainability and fulfil its statutory duties.

It was clearly outlined to Members that the aim of the report was not to agree Harbour Dues for 2020 but rather to take into consideration the current status quo and discuss the potential financial management options available to the Board with a possible impact upon 2020 Harbour Dues. It was outlined that the 2020 Harbour Dues would be agreed at a later Board meeting, having been reviewed by the Management Committee, and that this report, the Asset Register report (Minute Number 82) and the end of year accounts for 2018/19 would be used to jointly inform decision making on the setting of Harbour Dues for 2020.

As part of the discussion, items raised included:

• The importance of engaging with visitors to ensure the suitability of the River’s ‘visitor offer’ and to reach out to potential visitors with attractive marketing. This could help to generate external income for the service. That said, the statutory duty of the Harbour Authority in ensuring navigational safety was always the priority.
• The potential to review the charging structure for moorings to ensure that more moorings were let out and to produce additional income. The options here included:

·      Introducing an increased charge for in-demand moorings to generate more income.

·      Introducing a decreased charge for  less used moorings (those for vessels under 9m in length) to encourage usage.

·      Continuing to advertise moorings widely across Hampshire and beyond.

• The option to review the Harbour Authority’s contractual arrangements was due for renewal. Members felt that aspects of the contract could be reviewed as part of these discussions.
• The Board noted that raising Harbour Dues should not be considered as the sole option and that it would be worthwhile exploring other avenues (including reviewing the discount offered to commercial operators) whilst maintaining the statutory service that is required

The discussion also focused upon the potential to develop a programme of future opportunities and whether it would be appropriate to support this with a further increase in Harbour Dues. Members were supportive of possible involvement with other projects, although felt that this did not necessarily need to result in a Harbour Dues increase and that other options could be explored.

RESOLVED:

1. That the Harbour Board notes the growing shortfall between the projected net annual surplus on revenue activities and the £35,000 balance agreed to be transferred to the Asset Replacement Reserve.

2. That the Harbour Board recognises that an increase in Harbour Dues for the 2020 calendar year, currently projected to be 5.1%, is likely to be required and that this future options report be considered alongside the Asset Review and Final Accounts in setting Harbour Dues for next year at a future Board meeting. Furthermore, that the Board notes that consideration also be given to:

·                The charging model for commercial operators on the River.

·           The balance of charging for smaller /larger moorings and whether this could be re-structured to better suit demand.

·                The opportunity to explore income from contractual arrangements.

3. That the Harbour Board considers whether a programme of future opportunities should be pursued, not necessarily with a resulting further increase to Harbour Dues.