Agenda item

(Cabinet Members with Special Responsibility Councillors Bryning, Hamilton-Cox, Leytham, Sands and Smith)

 

Report of the Chief Officer (Resources)

 

(Cabinet Members with Special Responsibility Councillors Bryning, Hamilton-Cox, Leytham, Sands and Smith)

 

Cabinet received a report from the Chief Officer (Resources) to consider the annual review of fees and charges for 2014/15.

 

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

 

In order to assist the decision making process the report was structured into three main areas as follows:

 

• Environmental Services – Car Parking
• Health & Housing
• Wellbeing

 

These will set out the key considerations for Members in context of the latest budget projections and list the relevant options, options appraisal and officer recommendations either in the body of the report or in the appendices.  It is important to remember that income budgets have been set based on the best information available at this time, but also that the impact of the current economic climate could continue to adversely affect income generation.

 

ENVIRONMENTAL SERVICES – CAR PARKING

 

All options and relevant analysis are set out in Appendix C to the report. 

 

Were parking charges seen as purely a way of generating income for the Council then options 2 and 4 combined would be recommended as the way forward. However, this Council’s view of parking and charges is that when properly managed they contribute to the wider traffic management, regeneration and public realm issues within the District. This approach is set out clearly in the Council’s Parking Strategy which is further emphasised in the revised Parking Strategy currently out for consultation. With this in mind, Option 4 is the preferred option as it is the one that is most likely to effectively support the Council’s priorities.

 

In addition, the following sub-options are the preferred options:-      

 

Sub - Option 5 to introduce 24 hour parking charges in Lancaster

Sub - Option 6 to increase parking charges at Williamson Park and to remove the Annual Permit

Sub - Option 7 b) to increase all car park permits by 5%

Sub - Option 8 a) to introduce parking charges on Bank Holidays in Lancaster

Sub - Option 8 c) to increase the 1 hour charge on the Festival Market Car Park by 10p

Sub – Option 8 d) to increase parking charges on Morecambe’s outer car parks

 

In total the officer preferred options would generate an additional £54,800 above the estimated income for 2014/15.

 

Members voted on the options and sub-options as follows:

 

Councillor Hanson proposed, Councillor Sands seconded, and agreed (Members voted as set out in resolution (1)

 

“That Option 4, as set out in the report, which freezes the 1 hr tariff but increases other tariffs on both short and long stay car parks, be approved.”

 

Councillor Hamilton-Cox proposed, Councillor Leytham seconded and it was agreed unanimously:

 

“That an additional 24 hour charge be introduced in Lancaster as per sub option 5.”

 

Councillor Hamilton-Cox proposed, Councillor Barry seconded and it was agreed unanimously:

 

“That the car parking charges at the car parks at Williamson Park be increased as set out in the report, with the option of an annual permit removed as per sub option 6.”

 

It was proposed by Councillor Hamilton-Cox proposed, seconded by Councillor Bryning and agreed unanimously:

 

“That car park permit charges be increased by 5% as per sub option 7(b).”

 

Councillor Hamilton-Cox proposed, Councillor Leytham seconded and it was agreed unanimously:

 

“That parking charges be introduced on Bank Holidays in Lancaster as per sub option 8(a).”

 

Councillor Hamilton-Cox proposed, Councillor Hanson seconded and it was agreed unanimously:

 

“That evening charges are not introduced in Morecambe.”

 

It was proposed by Councillor Hamilton-Cox and seconded by Councillor Barry:

 

“That the 1 hour parking charge on the Festival Market Car Park be frozen.”

 

Upon being put to the vote 2 Members voted for the proposal and 6 against, whereupon the chairman declared the proposition to be lost.

 

It was then proposed by Councillor Sands and seconded by Councillor Hanson and agreed, Members voted as set out in resolution (7)

 

“That the 1 hour parking charges on the Festival Market Car Park be increased by 10p as per sub option 8(c).”

 

It was proposed by Councillor Hamilton-Cox proposed, Councillor Leytham seconded agreed unanimously:

 

“That the parking charges on the outer car parks in Morecambe be increased as per sub option 8(d) in the report.”

 

It was proposed by Councillor Hamilton-Cox proposed, Councillor Leytham seconded agreed unanimously:

 

“That payment by mobile phone be implemented as the most suitable alternative payment method, subject to addressing the ICT and banking arrangements.”

 

 

Charging for Bins and Boxes

 

Council (27 February 2013) resolved that Cabinet give further consideration to charging for delivery of waste/recycling bins and/or boxes. A charge for delivery of bins and boxes to residents moving into houses that require them has recently been introduced. Cabinet are however requested to consider whether it is now appropriate to introduce a delivery charge for replacement bins and/or boxes to all householders.

The budgets for 2014/15 onwards already include the additional income, in line with the original resolution, therefore if Members wish to withdraw from charging, then this would need to be reflected in Cabinet’s budget proposals (for approval by Council).

 

It was proposed by Councillor Smith, seconded by Councillor Sands and agreed unanimously:

 

“That the decision with regard to introducing charging for bins and boxes be deferred for a month to allow further consideration on this issue.”

 

 

HEALTH & HOUSING

 

Appendix D to the report set out the current charges and options for increases for 2014/15.  The proposals take account of the Council’s stated intention to try to protect the most vulnerable in our community by keeping increases to a reasonable level and retaining the reductions for those in receipt of council tax/housing benefit.  This has been balanced against the need to generate additional income.

 

 

Pest Control Fees

A review of pest control fees has been undertaken with the aim of making this discretionary activity as close to full cost recovery as possible whilst retaining fees at a level that is affordable for those citizens wishing to access the service. For this reason a fee increase of 5% is proposed for most pest control fees and this is shown in Appendix D.  The exceptions to this are wasp treatments where the proposal is a 2% increase only as there is evidence that competitors are much cheaper than the council for this service and any further increase on the current price is likely to have an adverse impact on demand. It is further proposed that wasp treatments for commercial premises are set at the same price as domestic premises for the same reasons.  In relation to moles and squirrel treatments, the proposal is to charge the full cost recovery on a case by case basis. 

 

HMO licence fees

House in Multiple Occupation (HMO) fees have been reviewed in line with Government legislation which dictates that the fee charged must only seek to recover the costs of processing an application. Good practice that has developed since licensing was first introduced has also been incorporated into the revised fee structure. This means that the standard fee for a licence has been kept down, but weighted costs have been applied to those applicants who cause the council more work, e.g. late applications, incomplete applications etc. The revised fees are based upon an application being complete and on time, which would include the majority of the licence holders in Lancaster. The revised fee structure is laid out in Appendix D to the report which also includes the penalty fees mentioned above. 

 

General Fees and Charges

Most of the fees and charges covered in this report relate to the provision of statutory services.  Although the majority of services provided are statutory, the council does have flexibility in setting fees for these services.  For the discretionary services, the council is at discretion to set its own level of fee provided that the fees remain competitive and affordable to retain customers.  The pest control service is estimated to operate at a loss of £98,500 inclusive of recharges, and £19,500 excluding recharge in 2014/15, based on the latest draft budget which includes an inflationary increase of 2%.  If Option 2 (5% increase) is approved the deficit will be reduced by £3,000.

 

	Option 1 To approve an inflationary increase of 2% in fees.	Option 2 To approve a 5% increase.
Advantages	This option allows for increased fee revenue of £8,000 in line with the current budget projections whilst retaining fees at competitive levels.   The increase in pest control fees reduces the council’s subsidy of this service by a substantial amount whilst retaining pest control fees affordable compared to some private sector providers.	This option would generated additional income of £12,000
Disadvantages		Any increase in fees is likely to be unpopular with customers.
Risks	There is always a risk that customers will choose not to access services if fees are too high.   However, evidence gathered shows core fees and charges are comparable to other nearby local authorities.	There is always a risk that customers will choose not to access services if fees are too high.   There is a risk that even current income levels will fail to be achieved if fees are perceived to be too high.

 

 

Option 1 is the officer preferred option, with the exception of Pest Control fees (excluding wasps) where Option 2 is the officer preferred option.  This is to maintain a balance between cost recovery and affordability for users of the services.  

 

It was proposed by Councillor Leytham, seconded by Councillor Hanson and agreed unanimously:

 

“That the recommendations with regard to Health & Housing, as set out in the report, be approved.”

 

 

WELLBEING

 

Appendix E to the report sets out a range of price increases which will generate the overall 2% inflationary increase already built into the draft budget for 2014/15.  The range of increases are based on officers knowledge of market demand and supply, factors such as inflation and VAT and the need for the Council to operate services which provide value for money. The prices are the maximum charge and officers retain the flexibility to reduce charges in line with market demand or specific schemes such as the £1 swim sessions at Salt Ayre Sports Centre.

 

Overall, if the proposed increases are approved they will generate £12,000 more than the draft budget which equates to an average increase of 2.9%.  The opportunity to increase prices above inflation for certain activities enables officers to maximise the potential income generation on those activities and at the same time enables price freezes on other activities that would otherwise see a drop in customer demand.  The proposed increases are those set out in Appendix E and are the officer preferred option.  These will generate more than the overall 2% inflationary increase by some £12,000.

 

It was proposed by Councillor Sands, seconded by Councillor Leytham and agreed unanimously:-

 

“That the recommendations with regard to Wellbeing, as set out in the report, be approved.”

 

Resolved:

 

(7 Members (Councillors Barry, Blamire, Bryning, Hanson, Leytham, Sands and Smith) voted in favour, and 1 Member (Councillor Hamilton-Cox) voted against).

 

(1)        “That Option 4, as set out in the report, which freezes the 1 hr tariff but increases other tariffs on both short and long stay car parks, be approved.”

 

Resolved unanimously:

 

(2)        That an additional 24 hour charge be introduced in Lancaster as per sub option 5.

 

(3)        That the car parking charges at the car parks at Williamson Park be increased as set out in the report, with the option of an annual permit removed as per sub option 6.

 

(4)        That car park permit charges be increased by 5% as per sub option 7 (b).

 

(5)        That parking charges be introduced on Bank Holidays in Lancaster as per sub       option 8 (a).

 

(6)        That evening charges are not introduced in Morecambe.

 

 

Resolved:

 

(6 Members (Councillors Blamire, Bryning, Hanson, Leytham, Sands and Smith) voted in favour, and 2 Members (Councillors Barry and Hamilton-Cox) abstained).

 

(7)        That the 1 hour parking charges on the Festival Market Car Park be increased by 10p as per sub option 8(c).

 

Resolved unanimously:

 

(8)        That the parking charges on the outer car parks in Morecambe be increased as per sub option 8 (d) in the report.

 

(9)        That payment by mobile phone be implemented as the most suitable alternative payment method, subject to addressing the ICT and banking arrangements.

 

(10)      That the decision with regard to introducing charging for bins and boxes be deferred for a month to allow further consideration on this issue.

(11)      That the Environmental Health and Private Sector Housing fees in Appendix D be increased by 2% with the exception of pest control fees where it is proposed to increase these by 5% as set out in the report and appendix. 

(12)      That the charges for Salt Ayre Sports Centre, Community Pools, Williamson Park, Parks and Recreation Grounds be increased in line with the proposed percentages (rounded to nearest £0.10) and arrangements as set out in Appendix E.

Officers responsible for effecting the decision:

 

Chief Officer (Resources)

Chief Officer (Environmental Services)

Chief Officer (Health & Housing)

 

Reasons for making the decisions:

 

 

Environmental Services – Car Parking Recommendations (1) to (9)

Parking fees and charges are reviewed annually to ensure the Council meets its transportation and budget commitments.  The decision is consistent with the Parking Strategy.

 

Environmental Services -  Charging for Bins –

Deferring this decision allows for further consideration on this issue.

 

 

Health & Housing – Recommendation (11)

The proposals take account of the Council’s stated intention to protect the most vulnerable in our community by keeping increases to a reasonable level and retaining the reductions for those in receipt of council tax/housing benefit.  This has been balanced against the need to generate additional income.

 

Wellbeing – Recommendation (12)

The decision to increase prices above inflation for certain activities enables officers to maximise potential income generation on those activities whilst enabling price freezes on other activities that would otherwise see a drop in customer demand.