Issue - meetings

The Committee received a report on Car Park Income from the Parking Services Manager and were asked to make recommendations to the Cabinet Member for Environmental Services. The Committee were asked to receive a report by the Council’s Scrutiny Chairmen’s Group (SCG) which was concerned by the underachievement against budgeted income for the first quarter of the municipal year.

The report suggested that nationally local authorities experienced shortfalls of between 5 and 15% which was attributed to the difficult economic conditions and reduced customer spending power as well as lower footfall on high streets due to internet shopping. A regional comparison showed that over the previous three years Cheshire East had performed consistently and maintained a reasonable position against the average.

The Parking Services Manager assured the Committee that car parks were being maintained to a good standard, were open whenever possible and that enforcement was performing well both on the streets and in car parks.

Some Members of the Committee suggested that the income deficit may be due to the tariffs being set too high. The Parking Services Manager stated that the figures that SCG had questioned were from before the recent tariff rise in August 2011 and income had shown a 5% increase since the tariffs increase. Analysis showed that parking demand was more price sensitive in some towns compared with others and there was no overall correlation between price rises, income and demand. Car Parking was subject to the laws of supply and demand and in many cases lowering the price would not increase income through greater demand because many car parks were already filled to capacity most days due to limited supply of spaces.

The Parking Service Manager stated that there had been positive feedback from the ‘Pay by Phone’ trail that was being conducted. This actually cost customer slightly more due to the phone charge however customers preferred the convenience of the system. Parking Services was also looking into installing pay machines that accepted cards payments which it was hoped would make paying easier for customers and encourage the use of car parks.

Members of the Committee suggested that perhaps the budget was too optimistic about the income that car parks were able to generate. Income had been relatively consistent over recent years however it had continued to fall short of the budget figure that had been used in previous budgets. The Committee suggested that next years budget needed to be more realistic and reflect historical/actual income which was achievable in the current climate.

RESOLVED:

(a)  That the report be noted and the Parking Services Manager be thanked for attending.

(b)  That the Committee believe the budget for car parking income had been set too high and that the Committee recommend to the Cabinet Member for Environmental Services that historic data be used to create a realistic budget figure for the 2012/13 budget.

The Parking Service Manager left the meeting.