Decision details

(Cabinet Members with Special Responsibility Councillors John Gilbert and Roger Mace)

 

The Head of Property Services submitted a report that gave consideration to the Annual Review of Parking Fees and Charges for 2008/09. 

 

The options, options analysis, including risk assessment, were set out in the report as follows: 

 

The following options have been put forward for consideration in light of the discussions with the Chamber Groups and the need to meet the budgetary commitments. The options are limited to minor changes rather than across the board increases in the anticipation that the additional usage previously mentioned can bemaintained. However, Cabinet needs to be aware of the risks associated with this assumption combined with relying on some tariff increases raising the required additional income and the introduction of a new tariff. The traffic and parking implications are highlighted where applicable.

 

Please note that an allowance for resistance has now been included in the following Pay and Display projections.

 

Option 1

 

Pay and Display – Short Stay

 

Tariff Description	Tariff	Additional Income
Introduce Up to 4 hours (assumes no increased sales and 10% change from up to 3 and over 3 hour tariffs)	£3.20	£6,600
Amend Over 3 hours to Over 4 hours and increase charge by £1.00	£8.00	£8,000

 

Public Permits

 

Increase General and Specific by 5% in line with table at 3.3

£11,700

 

This option provides the additional tariff of Up to 4 hours that is effectively a 3 to 4 hour charge. As indicated the estimates assume 10% of existing 3 hour and Over 3 hour customers will elect to stay longer in the new Up to 4 hour category. This new tariff may attract some customers from the existing long stay Up to 5 hour category in Lancaster and this would transfer vehicles from long stay to short stay car parks. If successful, the new tariff may affect the turnover of spaces at peak periods although this may not necessarily affect income. Clearly there are risks associated with introducing a new tariff and this tariff or charge may need to be reviewed next year if there is a subsequent adverse variance.

 

This option also includes increasing the amended Over 4 hour tariff from £7.00 to £8.00 to discourage long stays on short stay car parks. However, this is estimated to only raise an additional £8,000.

 

A 5% increase in public permits is broadly in line with inflation and this reduces the level of discount offered to commuters compared with daily parking costs. However, the same level of sales is anticipated and this does not discourage further reductions in commuting and the use of long stay car parks.  

 

This option does not achieve the budgetary commitment with an estimated shortfall of £26,400.

 

Option 2

 

Pay and Display – Short Stay

           

Tariff Description	Tariff	Additional Income
Increase Up to 2 hours by 0.10p	£1.70	£30,000
Introduce Up to 4 hours (assumes no increased sales and 10% change from 2 and over 3 hour tariffs)	£3.20	£6,600
Amend Over 3 hours to Over 4 hours and increase charge by £1.00	£8.00	£8,000

 

Public Permits

 

Increase General and Specific by 5% in line with table at 3.3

£11,700

 

This option is similar to Option 1 but includes increasing the existing Up to 2 hour charge from £1.60 to £1.70. This is estimated to raise an additional £30,000 in view of the number of customers using this tariff. As previously mentioned the 4 hour tariff and charge may need to be reviewed in the 2009/10 review in light of parking patterns and usage.

 

In budgetary terms this option is estimated to generate a total of £56,300 against the budgetary commitment of £52,700.

 

Option 3

 

Pay and Display - Short Stay

 

Tariff Description	Tariff	Additional Income
Increase Up to 3 hours by 0.10p	£2.50	£11,000
Introduce Up to 4 hours (assumes no increased sales and 10% change from 2 and over 3 hour tariffs)	£3.20	£6,600
Amend Over 3 hours to Over 4 hours and increase charge by £1.00	£8.00	£8,000

 

Public Permits

 

Increase General and Specific by 5% in line with table at 3.3

£11,700

 

Again this option is similar to option 2. This option provides an alternative by increasing the Up to 3 hour tariff from £2.40 to £2.50. This option reduces the differential between the cost of 3 and 4 hour parking and may help to encourage shoppers and visitors to stay for the additional hour.

 

Combined with the permit increases this option is estimated to generate additional income that is £15,400 below the required budget commitment.

 

Option 4

 

The final option is to do nothing and retain the existing level of fees and charges. This will not achieve the budget commitment unless increased pay and display   usage significantly exceeds the level experienced in the first half of 2007 and possibly combined with increased permit sales. This option is clearly a significant risk to the revenue budget and assumes further substantial increased use due to price stability or other factors outside the Council’s control.

 

The preferred officer option was Option 2 in that it introduces an inflationary increase on the Up to 2 hour tariff and introduces the new Up to 4 hour tariff along with inflationary increases in public permits charges. This option could raise up to £56,300 in additional revenue but it is suggested the original budgetary commitment of £52,700 is still included in the budget to assist with any subsequent adverse variance issues. 

 

It was moved by Councillor John Gilbert and seconded by Councillor Roger Mace: -

 

“That the recommendations, as set out in the report, be approved.” 

 

By way of amendment it was moved by Councillor Jon Barry and seconded by Councillor Maia Whitelegg: -

 

“That the charge for car parking for up to 1 hour be increased from 0.90p to £1 for revenue purposes.”

 

Upon being put to the vote, 3 Members voted in favour (Councillors Jon Barry, David Kerr and Maia Whitelegg), 6 Members voted against (Councillors Evelyn Archer, June Ashworth, Eileen Blamire, Abbott Bryning, John Gilbert and Roger Mace) and 1 Member abstained from voting (Councillor Tony Johnson), whereupon the Chairman declared the amendment to be lost.

 

Members then voted upon the original proposition. 

 

Resolved:

 

(8 Members voted in favour (Councillors Evelyn Archer, June Ashworth, Eileen Blamire, Abbott Bryning, John Gilbert, Tony Johnson, David Kerr and Roger Mace) and 2 Members voted against (Councillors Jon Barry and Maia Whitelegg)

 

(1)        That Cabinet approves Option 2 of the Annual Review of Fees and Charges for 2008/09 consisting of:

 

a)      Increase the Short Stay Up to 2 hour tariff to £1.70.

b)      Introducing a Short Stay Up to 4 hour tariff at £3.20.

c)      Amending the Short Stay Over 3 hour tariff to Over 4 hours and increasing the charge to £8.00.

d)      Increasing all General and Specific Public Permits by 5%.

 

Officers responsible for effecting the decision:

 

Corporate Director (Finance and Performance). 

Head of Property Services. 

 

Reason for making the decision:

 

The decision introduces an inflationary increase on the Up to 2 hour tariff and introduces the new Up to 4 hour tariff along with inflationary increases in public permits charges.