Agenda item

Fees and Charges Review - 2017/18

(Cabinet Members with Special Responsibilty Councillors Leyshon & Whitehead)

Joint Report of Chief Officer (Resources) and Chief Officer (Environmental Services)

Minutes:

(Cabinet Members with Special Responsibility Councillors Whitehead and Leyshon)

Cabinet received a joint report from the Chief Officer (Resources) and Chief Officer (Environment) to consider the annual review of fees and charges for 2017/18.

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

The policy attached to the report remains substantively unchanged and it is considered that it remains fit for purpose (at least in the short term) and it adequately covers Cabinet’s budget proposals. As such, no options are presented and Cabinet is simply requested to endorse the policy.

Options regarding car parking charges are covered in Appendix C to the report.

Off Street Pay and Display Charges

Option 1

To introduce a range of options for car parking fees and charges for 2017/18 that support the ongoing management of car parks and the wider objectives of the Council:-

Advantages

Disadvantages

Risks

Option 1A

This option freezes the most popular parking tariffs of 1 and 2 hours that account for 71% of short stay transactions and nearly 62% of overall parking transactions.

The 1 and 2 hour parking tariffs often provide a guide or perception of the overall level of charging and maintaining these tariffs at their current levels for as long as possible is beneficial.

By not increasing the 1 hour tariff the differential charge is maintained in Lancaster with on-street parking charges as agreed with the County Council.

Option 1B

This option limits the increases to stays of 3 hours and longer and avoids the most popular tariffs of 1 and 2 hours that affect a large proportion of customers as previously reported.

Again, by not increasing the 1 hour tariff the differential charge is maintained in Lancaster with on-street parking charges as agreed with the County Council.

This option maintains the current cost of all-day long stay parking in Morecambe.

Increased charges at Williamson Park are broadly in line with the main proposals.

Option 1C

This option maintains the traditional free off street parking in the Council’s car parks and supports local shops and businesses leading up to Christmas.

This option encourages residents and visitors to shop locally and to improve the viability of the city and town centres at Christmas.

Option 1D

This option introduces formal management of the car park and allows leisure users and shoppers to use the car park.

This option prevents the long-term parking of vehicles on the car park and commuter parking.

The 4 hour maximum stay allows for the turnover of spaces and gives leisure users and shoppers greater opportunity to use the car park.

The 2 hour tariff car park tariff could be increased without affecting the differential charge for the limited number of 2 hour on-street spaces.

Although this option avoids the most popular tariffs 33% of parking transactions would still be affected by the increased charges.

This does lead to the loss of income but this has been factored into previous year’s budgets and the current draft budget for 2017/18 and subsequent years.

The formal arrangements remove the informal regular long-term parking arrangements that some users and residents have become used to.

The only risk is the greater need to increase the 1 and 2 hour tariffs in future years.

Introducing increases that affect 33% of all transactions could have a negative impact on overall car park usage.

Increasing charges at Williamson Park could reduce the number of visitors to the Park / lead to displacement onto surrounding streets.

The greater risk is associated with discontinuing this option and the impact this would have on city and town centre viability at Christmas.

Formal management and parking charges could reduce usage of the car park.

The income generated from parking charges could be minimal.

Option 2

To investigate an alternative range of options for car parking fees and charges for 2017/18 that support the ongoing management of car parks and the wider objectives of the Council.

Advantages

Disadvantages

Risks

This would potentially allow alternative options to be considered.

Alternative proposals may not provide the same range of support for the ongoing management of car parks and the wider objectives of the Council.

Alternative proposals may not be introduced for the start of 2017/18 and have operational and financial implications.

The Officer Preferred Option is Option 1 - To introduce the following range of sub-options (i.e. 1A to 1D) for car parking fees and charges for 2017/18 that support the ongoing management of car parks and the wider objectives of the Council (further summarised in budgetary terms in the table below):-

· That the most popular 1 and 2 hour tariffs are frozen for 2017/18.

· To increase the tariffs outlined in TABLE A of this report on all main car parks in Lancaster and Morecambe and increasing the Full Day charge at Williamson Park.

· That free parking over Christmas is provided on the following dates:- Sundays - 26^th November, 3^rd, 10^th, 17^th and 24^th December 2017 Thursday evenings – 30^th November, 7^th, 14^th and 21^st December 2017 (Thursdays subject to further discussion with Lancaster BID and any alternative proposals not leading to an overall greater loss of income).

· To introduce formal management of the Kingsway Car Park in Lancaster and the parking charges outlined in TABLE B and Officers amend the Off Street Parking Places Order at the earliest opportunity to implement the changes.

Option 1	Additional Income £
1A – 1 and 2 hour Tariffs Frozen	0
1B – Increase Tariffs as per Table A	49,900
1C – Sunday Free Parking (Christmas Period)	0
Total	49,900
1D – Formal Management of Kingsway Car Park (Subject to outcome of the 2017/18 Budget Process)	8,000 (increasing to £10,200 from 2018/19)

Councillor Whitehead proposed, seconded by Councillor Leyshon:-

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

Councillors then voted:-

Resolved unanimously:

(1) That Cabinet endorses the Fees and Charges Policy as set out at Appendix A to the report, and during 2017/18 (i.e. Phase 2 of the budget process), determines whether any other areas of income generation be explored for 2018/19 onwards.

(2) That Cabinet approves:

- Option 1A - that the most popular 1 and 2 hour parking tariffs are frozen on all car parks.

- Option 1B - that increases are approved for the tariffs outlined in Table A of the car parking report set out at Appendix C on all main car parks in Lancaster and Morecambe and increasing the Full Day charge at Williamson Park, Lancaster.

- Option 1C - that free Christmas parking is maintained on all main city and town centre car parks on the following dates:-

Sundays – 26 November, 3, 10 and 24 December 2017

Thursday evenings – 30 November, 7, 14 and 21 December 2017

(Thursdays being subject to further discussion with Lancaster BID and any alternative proposal not leading to an overall greater loss of income).

- Option 1D – that subject to the outcome of the 2017/18 Phase 1 savings proposals being approved, formal management of the Kingsway car park, Lancaster is introduced and parking charges are approved as outlined in Table B of the car parking report, as set out in Appendix C; with Officers requested to amend the Off Street Parking Places Order at the earliest opportunity to implement the changes.

Officers responsible for effecting the decision:

Chief Officer (Resources)

Chief Officer (Environment)

Reasons for making the decision:

Fees and charges form an integral part of the budget setting process, which in turn relates to the Council’s priorities. Under the Medium Term Financial Strategy (MTFS), income generation is a specific initiative for helping to balance the budget. The proposed increases are considered to be fair and reasonable.

Supporting documents: