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Report of Head of Development and Corporate Landlord Author: John Backley E-mail: john.backley@southandvale.gov.uk Wards affected: all |
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Cabinet member responsible: Sue Cooper Tel: 01491 835631 E-mail: sue.cooper@southoxon.gov.uk Date: 3 February 2022 |
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Car park fees and charges for 2022/23
Purpose of Report
1. This report provides information to help the Cabinet decide if it chooses to amend the car park fees and charges in South Oxfordshire District Council car parks.
2. Reviewing the car park fees and charges each year is in line with the council’s car park pricing policy, which is attached to this report as Appendix 1.
Corporate Objectives
3. The provision and pricing of car parks contributes to the delivery of the objectives of the South Oxfordshire Corporate Plan 2020/24, wherein strategic objective six seeks to deliver the achievement of “investment and innovation that rebuilds our financial viability” – this leads us to setting fees which cover the full cost of providing the car park service.
Background
4. The car park pricing policy as shown in Appendix 1, balances the requirement for users to meet the costs of the car parks, with the need for charges to be economically viable having regard to the impact they have on the local economy.
5. The current fees and charges are shown in Appendix 2 to this report and the price of parking permits is in Appendix 3. A comparison of fees in other neighbouring car parks is shown in Appendix 4.
6. In August 2020 Cabinet agreed to amend the parking fees as below:
a) Align all charging car parks in the centre of market towns of Didcot, Henley, Wallingford and Thame, as well as Goring, to all have up to one hour of free parking between the charging hours. And to amend charging hours to 9am to 5pm Monday to Saturday in all car parks where a charge is made.
b) Increase all fees (for up to two hours and above) by 20p
c) Change the current permitted parking period from Monday to Saturday to Monday to Sunday, 9am to 5pm in all charging car parks (except Goldsmiths Lane car park, Wallingford)
d) Increase the all-day parking fees at Edinburgh Drive car park, Didcot and Wheel Orchard car park, Goring
e) Half priced permits for electric vehicles only
f) Introduce fees at High Street car park, Chinnor (Monday to Saturday)
g) Charging points for electric vehicles
7. Officers are in the process of amending the current car park orders to bring them in line with Civil Parking Enforcement legislation. This involves minor changes to wording (Penalty Charge Notice - PCN rather than Excess Charge Notice - ECN) and changes to the levels of car parking fines issued. This legislation requires any surplus income to be reinvested in the car park / highways improvements.
8. The impact of the Covid-19 pandemic has reduced the level of income from car parks. A reduction in users parking in the council car parks in 2020 has continued through 2021 and changes to the fees in December 2020 and June 2021 have not produced the income that was forecast. Appendix 5 summarises car park usage data for September 2020 and 2021. Car parks such as Kings Road car park in Henley, Goldsmiths Lane car park in Wallingford and Edinburgh Drive car park in Didcot have lower usage in 2020 and 2021 (up to 60 percent of capacity) compared to surveys pre-Covid.
Car park account over six years
9. Table 1 below estimates how the net cost of car parks will change over a six-year period 2020/21 to 2025/26 if no changes are made. Reviewing the income and expenditure over a six-year period allows cabinet to take a medium-term view of how income and expenditure are likely to change and see whether the account is predicted to run at a loss or with a surplus.
10. The total income from 2021/22 is based on budget figures and includes for reduced car park usage due to the on-going impact of the Covid pandemic.
Table 1 Car park income and expenditure over a six-year period.
11. The 2020/21 outcome shows a £342,472 loss of income. The car park account is forecast to continue running at a loss. The account includes the worst-case scenario estimated loss of income from the installation of electric vehicle charging bays that are due to be in place by March 2022.
12. The car park policy states that the fees should be set at a level so that over the next five years they at least meet the costs of running the car parks.
13. The car park pricing policy paragraph b) states that, “Pricing may be used to regulate and influence usage to support town centre vitality and viability”.
Options
14. Officers propose the following amendments to the car park fees A to C in order to meet paragraph a) of the policy for the fees to be set to at least meet the expenditure as well making up for the loss of income due to the Covid-19 pandemic and the need to support market town shops as they recover from the pandemic.
A. Increase all fees (for up to two hours and above) by at least 40 pence
15. Excluding the exceptions noted at paragraph 16, based on latest ticket sales April to October 2021, officers estimate that an increase of 40 pence on each tariff would increase the income by £105,000 per year which would meet the expected deficit in 2022/23. This would increase the car parking charges as follows:
up to 2 hrs £1.20 increase to £1.60
up to 3 hrs £1.80 increase to £2.20
up to 5 hrs £2.00 increase to £2.40
up to 8 hrs £2.40 increase to £2.80
up to 10 hrs £3.60 increase to £4.00
16. The council wishes to encourage the use of Riverside Wallingford car park for recreational use for short periods and so the exceptions to the above proposed increases by 40 pence are at Riverside car park for short periods (increase by just 20 pence) and encourage alternative transport use for long term stays (increase by 40 pence / 60 or 70 pence to enable rounding up to nearest pound) as set out below:
Riverside car park, Wallingford (low season)
for up to one hour 80 pence increase to £1.00
for up to 10 hours £1.30 increase to £2.00
Riverside car park, Wallingford (high season)
for up to one hour 80 pence increase to £1.00
for up to 3 hours £1.30 increase to £2.00
for up to 10 hours £2.60 increase to £3.00
Southfields car park, Henley
for up to 5 hours £2.40 increase to £3.00
for up to 8 hours £3.40 increase to £4.00.
Appendix 2 lists the current permit prices.
17. There would be a relative increase in the cost of permits as this is linked to the day rate and this is estimated to produce an additional £5,000 of income on top of on the day issued tickets, totalling £110,000 additional income. Whilst this this would meet the expected deficit in 2022/23 it would not meet the on-going policy requirement for income to at least meet expenditure over the medium term.
18. It should be noted that this potential increase of £110,000 does not include Goldsmiths Lane car park, Wallingford. Goldsmiths Lane car park is joint owned by others who may not agree with this option. If a price increase can be agreed as part of the current on-going negotiations the overall income would potentially increase by a further £4,000 per annum.
19. Current usage figures show that car parks are on average between 20 and 30 percent full at 8am and at 6pm. Based on income April to July 2021, officers estimate that extending the charging period by an hour each end of the day would increase income by £45,000 per year. This does not include any changes to Goldsmiths Lane car park which is joint owned by others who may not agree with this option. Sunday charging would remain 10am until 5pm in line with retail opening hours.
C. Review of season tickets (permits)
20. Parking permits are available for all car parks where there is an all-day fee and are sold at a reduced price compared to daily purchase. Permits are sold on a first come first served basis and based on a reduction from the day rate of 36 percent reduction for quarterly permits and 45 per cent reduction for annual permits.
21. From car park usage surveys, ticket purchases and feedback from users, there are signs of post covid changes in work patterns; more people are only coming into towns/offices on odd days and less regularly and so request more flexibility from parking permits. Officers consider the current reductions provide the correct incentive to pay ‘up front’ and there is sufficient demand for no changes or further incentives/reductions to be introduced.
22. Car parking permits are currently available to purchase on a quarterly or annual basis. The costs are linked to the day rate of the car park and will automatically increase if cabinet agree changes to the all day fees. For example the day rate at Cattlemarket car park in Wallingford is £2.60 for up to 8 hours. The annual season ticket is calculated as £2.60 x 6 hours x 52 weeks = £811.20 less 45 percent = £446 pa. Quarterly season tickets are less 36 percent.
23. Traditionally, the season ticket allows for parking in the specified car park, plus any other equivalent or cheaper car park. Therefore, purchasing a permit for Cattlemarket Wallingford would also allow parking in Thames St. car park and Castle St. car park.
24. This has raised an anomaly in Goldsmiths Lane car park which is part owned by Wallingford Town Council and a private developer as it is the most expensive day rate £3.60 and allows parking in other car parks in Wallingford.
25. Officers recommend that all permits are made non-transferable to any other carparks and therefore only valid for the one it was issued for.
26. Season tickets for one week are listed in the parking policy but there has been no take up in the past few years and officers recommend removing weekly season tickets from the policy in (g) in Appendix 1.
Table 2: Summary of proposed changes
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Description |
Proposed fee |
Increase in income pa |
Reduction in income pa |
Require new car parking order? |
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Proposed changes in line with car park policy |
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Do nothing |
No changes |
N/a |
A deficit of £99,000 in 2022/23 rising to £159k in 2025/26 |
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A |
Increase fees (for up to two hours and above) by 40p (except Goldsmiths Lane car park). N.B. some exceptions at Riverside car park, Wallingford and Southfields, Henley
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up to 2 hrs £1.20 to £1.80 up to 3 hrs - £1.80 to £2.20 up to 5 hrs £2.00 to £2.40 up to 8 hrs £2.40 to £2.80 up to 10 hrs £5.00 to £5.40
and relative increase in permits
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£110,000 |
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No, can be done by advert and notices in car parks |
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B |
Extend the parking charge period from 9am to 5pm to 8am to 6pm Monday to Saturday (Sunday remains 10am to 5pm). Not including Goldsmiths Lane car park, Wallingford)
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No change |
£45,000 |
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No, can be done by advert and notices in car parks |
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C |
Review of season tickets |
Season tickets to be specific to each car park.
Removal of weekly season tickets |
None |
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N/A |
Economic development implications
27. Appendix 3 compares car park fees and charges to neighbouring local authorities and shows that current fees remain competitive, even after the increase.
28. High Street businesses remain in a challenging position following the impact of the Covid-19 pandemic. Google Mobility data for Oxfordshire indicates trips to retail and recreation sites in the County were down by 30 per cent in December 2021, when measured against baseline evidence from February 2020.
29. Any actions that could negatively affect footfall to South Oxfordshire’s town centre retail locations is likely to cause concern within the business community as they seek to recover from the pandemic trading challenges.
30. Within the “Proposed changes to off-street parking in South Oxfordshire Consultation Report” of March 2021, respondents concerns were noted of the decline of the local high street in some towns, and the expectation and desire for the council and residents to support high street recovery was a common theme among responses. Many respondents linked parking charges with town centre footfall.
31. It is important to note there is a lack of robust evidence that can be used to link car parking charges to footfall in isolation, and car parking charges should be considered as one of a complex number of factors that influence town centre vitality, including: availability of car parking spaces, safety, traffic flow, signage, facilities, proximity to out of town retail sites, and business activity within the area.
Financial Implications
32.Any council decision that has financial implications must be made with the knowledge of the council’s overarching financial position. The position reflected in the council’s medium-term financial plan (MTFP) as reported to Full Council in February 2021 showed that the council was due to receive £4.3 million less in revenue funding than it plans to spend in 2021/22 (with the balance coming from reserves including unallocated New Homes Bonus).
33.This funding gap is predicted to increase to over £5 million by 2025/26. As there remains no certainty on future local government funding, following the announcement of a one-year spending review by government, and as the long term financial consequences of the coronavirus pandemic remain unknown, this gap could increase further. Every financial decision made needs to be cognisance of the need to eliminate this funding gap in future years.
34.The report contains several options for consideration but to maintain a balanced account the impact of individual and combined changes to policy are set out below.
35. In order to conform to the council car park policy, the service should break even at worst. For this, as a minimum option A should be adopted (increase fees by 40p) which will provide an estimated income of £110,000 per year against a deficit of £99,000 in 2022/23.
36. If agreed the changes can be implemented for 1 April 2022 and reflected in the 2022/23 budget.
37. Officers have not included for any changes to Goldsmiths Lane car park so income may increase if all parties agree changes at this car park.
38. Any changes to the fees will involve a cost; to update the software in the car park machines, to amend the tariff boards, signage and depending on publishing notices amounting to up to £6,000. These costs can be met from existing budgets.
Legal Implications
40. The legislation allows for tariff changes and minor changes to the charging period to be made by a simple process by way of a Variation Order. This requires a notice in the car park that the tariff change relates to and in the local newspaper. We must allow 21 days before the new fees come into effect.
41. The Goldsmiths Lane car park is partly owned by Wallingford Town Council and a private developer. The council caries out enforcement of the whole of the car park under a legal agreement. All three parties must agree for any changes to the fees to be made. Officers have not included for any changes to Goldsmiths Lane car park but will request agreed changes to be implemented which can only be done so with third party consent.
Equality and diversity
42. The car parks continue to offer up to five per cent of the total number of spaces as extra wide spaces for disabled drivers in line with national standards, but this may be more or less depending on location and demand. There is no charge to park when displaying a valid blue badge in any space.
Risks
43. Officers have included a risk factor in their calculations for estimating the income generated by increasing the fees. However, the risk remains that the proposed changes will not produce the income estimated. There is a degree of risk that people will choose to shop elsewhere or use alternative means of transport and that the increase in income will be less than estimated. This may thereby impact on the businesses in the town if the number of visitors to the towns reduces. The risk is considered mitigated by the fact that the pricing remains competitive with other local authority areas, and any modal shift, particularly to public transport would likely generate climate benefits by reducing the use of the private car.
45. Oxfordshire County Council started enforcing on street parking on 1 November 2021, therefore the increased risk of road users parking in the street will be mitigated by efficient on street enforcement.
46. There is continued uncertainty about the pandemic and the possibility of future lockdowns which could further effect income and the long-term recovery of the high streets.
Communications
47. If agreed, changes to the schedules will be advertised in local newspapers and in all the car parks and via social media.
Climate implications
48. South Oxfordshire District Council has agreed a target to work towards being a carbon neutral council by 2025 and a carbon neutral district by 2030. Increased fees may encourage people to consider alternative more sustainable forms of transport like walking or cycling.
49. One way of doing this is by ‘penalising’ those high emission vehicles by making it more expensive to park. Climate Officers suggest this may be done by removing the offer of permits (which offer reduced parking for regular users) to those vehicles with engines over a certain cubic capacity or above a CO2 emissions rate and Cabinet may wish to consider this in the future. If this approach was pursued it would require a full consultation on changes to the order and therefore is not advanced as an option at this time as a greater lead in time is required.
Other implications
50. The two car parks at Rye Farm and Hales Meadow are owned by the Vale of White Horse District Council but located in the district of South Oxfordshire and there is a legal deed in place which allows the Vale to operate the car parks within the administrative area of South. These two car parks therefore operate under a different car parking order to all the other car parks in South and any formal changes to the order will require Vale to consult with South.
Conclusion
51. The car park account forecast shows a deficit over the next five years and officers recommend changes to fees in line with the car parking policy in order to meet the costs of running the car parks. Officers have provided a way for this to be achieved and request the Cabinet support these options to be implemented.
Background Papers
· Car park usage surveys 2020 and 2021.
Appendix 1 Car park pricing policy 2006
a) Car park fees and charges shall be set so that over a five-year rolling period they at least meet the costs of car parks calculated in accordance with proper accounting practice. Costs will include charges for capital expenditure.
b) Pricing may be used to regulate and influence usage to support town centre vitality and viability. Therefore, short term and long term parking to be differentially priced and located to encourage workers to park on the edge of towns to free up town centre parking for shoppers and visitors.
c) Car park fees and charges to be benchmarked against
i. car parks provided in towns and villages in the district by other bodies
ii. on-street parking charges
iii. car parks in neighbouring authorities:
· Cherwell DC
· Aylesbury Vale DC
· Wokingham DC
· Wycombe DC
· Vale of White Horse DC
d) Parking is provided free of charge for disabled badge holders
e) No
fees and charges to apply on Sundays removed by Cabinet in
2021
f) Parking fees and charges to be reviewed annually
Season tickets and permits
g) Season tickets are available for purchase in advance by residents, tourists and businesses for all long stay car parks but do not guarantee a place. They are available for one year, a quarter and one week at a discounted rate.
h) Permits are available for market traders which give discounted rates for all day parking in long stay car parks for one particular day of the week over a quarter or a year. They also do not guarantee a place.
i) Discounts will be determined each year when fees and charges are reviewed.