PEOPLE in Weymouth and Portland shunned the chance to examine the borough council's accounts.

Council chiefs said they were amazed that no one contacted them during August when a statement detailing the borough's financial dealings during 2002/03 was available for inspection.

They said they after all the criticism levelled at the council over the past year they expected people to come and look at the state of the accounts.

They said that people had been asking the council for more clarity and openness about its finances, yet spurned an opportunity to examine them in detail.

Residents have the right to inspect an authority's accounts under the Audit Commission Act.

The head of financial services at Weymouth and Portland Borough Council, Jason Vaughan, said: "I was surprised that, given the difficulties the council has faced over the last 12 months, no one showed an interest in wanting to see the accounts during the 20 working days they were available for inspection."

Mr Vaughan said a public notice in the Echo detailed the procedure to view the accounts after the statement was approved by the full council in July.

The accounts will now be checked by the district auditor.

They reveal that council borrowing has rocketed and the deficit of the council's pension fund has risen while income from the harbour and car parks is well up on previous years.

Figures reveal that council borrowing has leapt by more than £11.5m to £44m.

This is reflected by an increase in the council's cash balance of £10.7m at the year end.

Reasons given for the rise included finance needed for new capital programmes and a comprehensive debt reorganisation.

The council has managed to renegotiate lending arrangements with its banks, resulting in the average loan interest rate falling dramatically from 8.1 per cent to 4.5 per cent.

Mr Vaughan said: "This will save the council tax payers of Weymouth and Portland a great deal of money, as the cost of borrowing impacts what we can spend each year."

Despite the increase in debt, council assets outweigh liabilities by nearly three to one.

The deficit of the borough council's pension fund has ballooned to £21.5m, up from £13.1m at March 2002. This is the borough council's share of Dorset County Council's scheme membership.

The rise is primarily due to a 33 per cent fall in the price of the fund's shares - from £24.8 million to £16.7 million - which is in line with the general market trend throughout the country.

The Confederation of British Industry (CBI) recently estimated that the total UK pension shortfall was £160 billion.

To remedy the deficit, the council currently pays contributions in to the scheme at a rate of 17 per cent.

Actuaries will formally value the scheme next March, and a large hike in contributions may be necessary if the market has not recovered.

This will impact heavily on the council's cash flow.

Mr Vaughan said: "Other pension funds have all suffered from the same thing. We are budgeting for a big increase in employer's contributions - up to a quarter of million pounds."

Net income from Weymouth's harbour during 2002/03 was £305,000 almost treble the council's forecast, up 50 per cent on last year's net figure of £207,000.

The trend looks to have continued with this year's good weather - net income for the three months to June 2003 alone is £288,000.

Harbour officials have confirmed this has been one of the best ever for visiting yachtsmen and women.

Car parking raised nearly £1 million for the council during 2002/03, making it one of the council's biggest earners.

The net income of £932,000 was £250,000 higher than the amount earned the year before, and Mr Vaughan said it was down to more visitors and higher parking charges.

Mr Vaughan made use of government money to save the council nearly £100,000 in cash.

The council transferred some leasehold properties to Weymouth and Portland Housing Association, which had a substantial debt attached relating to tenant refurbishments.

A settlement was negotiated between the council and the association, and Mr Vaughan was able to make use of social housing funds from government to pay the money.

Although councillors' working allowances have nearly doubled, Mr Vaughan said expenses are not budgeted for either councillors or officers.

The total members' allowances paid during the year were £125,000.

Councillors are paid a basic allowance and there are extra payments for members with special responsibilities including the chairmen and vice-chairmen of certain committees, brief holders and group leaders.

Entertainment does occur in the form of an annual party, but individual budgets do not exist. The council also allocated £2,000 for expenses related to mayoral business with Weymouth's twin towns.

The statement does not reveal a breakdown of individual wage bills but it does detail the number, but not the names, of employees whose basic pay and benefits, excluding pension contributions, is greater than £40,000.

The statement says four employees receive between £40,000-£49,999, two employees receive between £50,000-£59,999. One employee - which the Echo understands to be chief executive Tom Grainger - receives between £70,000-£79,999.

The total cost for pay, national insurance and pensions in 2002/03 was £8,926,628 for the council's 422 employees.