Cowes Harbour Commission Annual Report 2016-2017 | Page 24

Core Policy

Ensure that the commercial and financial management is robust , market-led and enables CHC to deliver its statutory duties and strategic objectives and fund harbour improvements .

Annual Review 2016

Overall 2016 has been another positive and successful year for the Commission in financial and operational terms . The financial position of Cowes Harbour Commissioners continues to be strong with an overall increase in operating surplus .

Turnover is up 5 % at £ 3,052,942 ( 2015 £ 2,919,916 ). Income from commercial users of the harbour increased 11 % to £ 815,676 ( 2015 : £ 733,856 ) and income from leisure users decreased by 3 % to £ 1,141,436 ( 2015 : £ 1,174,191 ).

Excluding fuel purchases , expenditure increased 8 % to £ 2,156,406 ( 2015 : £ 1,999,664 ), mainly due to depreciation costs associated with the Cowes Breakwater . Other costs associated with the Cowes Outer Harbour Project fell . Properties maintenance charges increased due to essential repairs and additional wages occurred as a result of new staff appointments .

Operating surplus increased by 7 % to £ 553,722 ( 2015 : £ 519,055 ) and the final surplus before taxation was down 11 % to £ 513,058 ( 2015 : £ 575,893 ). In 2015 , operating surplus included a £ 73,000 gain from the revaluation of the investment property .

For the third successive year there was a marked increase in the number of commercial ships entering the harbour , primarily bringing in stone for road improvements on the Island . The increase in volume of commercial operations gave a welcome increase in harbour dues and net pilotage income .

Revenues for both permanent and visitor moorings declined despite the good weather in the summer and autumn . This is a trend experienced throughout south coast leisure ports . The decline in demand for moorings also resulted in a reduction in the demand for taxi services leading to a reduction in the service provided by the commercial taxi operator . The Commission took the decision to support the commercial taxi operator with a stakeholder benefit contribution . This support will continue for 2017 .

The Sugar Store at Shepards Wharf opened for its first full season as an Events Centre hosting a range of functions from club regattas to weddings for the benefit of residents and visitors to the Island .

Despite a slight decline in the volume of fuel sold , the Cowes Harbour Fuels reported an increase in net surplus .

Property rental income increased by 13 % to £ 273,245 ( 2015 : £ 242,273 ). Kingston Wharf rental income in the previous year , 2015 , was distorted by the crystallisation of a rent-free period following the departure of a tenant . Kingston Marine Boatyard saw an increase in income of 13 % for boat storage and services . The facilities at Kingston were enhanced through continued investment in boat stands and cradles for the boatyard . During the year there was investment in upgrading our rental properties at both Kingston and Shepards and the expansion of our rental portfolio by the completion of an undercover boat storage unit and successful letting of storage land .

During the year , tidal modelling expenses and costs associated with the Outer Harbour Project were incurred of which £ 71,000 was expensed in 2016 . The Commission has invested significantly in the new Cowes Breakwater in the past few years and , following practical completion at the end of 2015 , this is now being depreciated at an annual rate of £ 148,000 . This investment is reflected in the overall annual depreciation charge and the 44 % increase to £ 288,214 ( 2015 : £ 200.230 ).

Following consultation and survey work , a maintenance dredge of Shepards Wharf Marina and Town Quay commenced in early 2017 . The total cost of the dredge will be in the region of £ 140,000 of which £ 77,000 was transferred to the maintenance dredging provision in 2016 .

Wages increased with the appointment of an Assistant Harbour Master to assist with an array of statutory responsibilities and pilotage duties and a full-time Communications and Marketing Officer . CHC took the decision to deliver full time administration cover at Kingston and extended office cover at Shepards as part of our continuing drive to improve customer services .