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PARKING INCOME REPORT -
HOW MUCH CHISWICK PAYS IN PARKING CHARGES Full Report on Parking Charges Rational for Differential Pricing Table of Revenue from Chiswick CPZs The Following is a Copy of a Report by the Director
of Environmental Services presented to Chiswick
Area Committee in February 2002 This report summaries the guidance and regulations
surrounding Controlled Parking Zones 2.1 Most of central London, together with Outer London town centres are now covered by Controlled Parking Zones (CPZs). 2.2 Parking spaces in CPZs are controlled by the use of Resident's Permits, Business Permits and Parking Charges all of which generate income for the Council. The Traffic Management and Parking Guidance for London issued by the Government Office for London in 1998 stated that the level of parking charges must be set for traffic management purposes. The primary purpose should be to ration available space and ensure there is a rapid turnover of parking spaces rather than to maximise revenue. The Guidance also states that permit charges should at a minimum cover the cost of operating and enforcing the permit system, but there is no reason to prevent a local authority rationing permits by price. 2.3 The rationale for the parking charging policy
and the differential pricing policy is 2.4 The 1984 Road Traffic Regulation Act (section
55) limits how any surpluses generated from
on-street parking activities can be spent.
The Act states that any surplus must firstly
be used to pay off any deficit from previous
years after which surpluses can be used for
:
3.1 Before the current financial year income generated from the various CPZ schemes and car parks in the Borough was not coded individually in the accounting system. The only split was between on and off street parking. From April 2001 all income has been coded directly to individual CPZs and Car Parks. Therefore the attached income analysis concentrates on the current financial year (Appendix 1). 3.2 The analysis of how much income was generated in previous years, the budgeted surplus and any additional surplus / deficit is included in Appendix 4. This analysis is a Borough wide total because the detail split between individual schemes is not available. All income in excess of the budgeted surplus has always been transferred to the Parking Reserve Account and the funds applied by the Committee of the Council in accordance with the 1984 Act (see paragraph 2.4). 3.3 Most expenditure in 2001/02 can not be coded
directly to individual CPZ schemes so the finance
team have to split total expenditure in order
to find the cost of administering each individual
scheme. The costs are split between schemes
on the basis of income earned. This basis for
allocating costs was chosen because the amount
of expenditure on each scheme is closely related
to the level of income generated, (ie expenditure
on parking attendants, machine maintenance,
coin collection / counting, permit administration
and PCN processing, etc is closely 3.4 All surpluses made on on-street parking activities are used in accordance with the 1984 Road Traffic Regulation Act (see paragraph 2.3). In Hounslow (in common with the majority of other Councils) there is a target surplus for on-street parking activities included in the base budget. This budgeted surplus is applied to finance expenditure on highway improvements in that financial year. 3.5 Any surplus generated in excess of the budgeted surplus is transferred to the Parking Reserve Account at the end of the financial year (see paragraph 2.3 (iv)). A copy of the PRA is attached (Appendix 3). Again this can only be used in accordance with the 1984 Act and all allocations have to be approved by the Committee of the Council. 3.6 As part of the budget strategy for 2002/03
and the reorganisation of the Parking Section
the Committee of the Council has already decided
to increase Parking income budget by approximately
£1,000,000 in 2002/03. This relates to
both on and off street parking. This increases
the budgeted surplus and therefore increases
the amount of parking income that will be used
to fund highway improvements during the year.
This in turn reduces the amount available to
either transfer to the PRA at the year end
or investment in CPZ schemes during the year. 4.0 Parking Surpluses
4.2 Columns A, B and C show the latest financial projections for each CPZ scheme. 4.3 Column D shows the total budgeted surplus
generated from on-street parking activities
(£1,224,600 for the whole Council in
2001/02) and allocates this between various
CPZ schemes in the Borough. 4.4 Column E shows the projected income generated
from on-street parking net of expenditure and
any budgeted surplus. The amount shown in this
column has not been applied to any specific
purposes in the base budget and will be transferred
the Parking Reserve Account at the year end.
Once in the PRA the Committee of the Council
need to approve any financial drawings. 4.5 Column F represents the capital costs of implementing each scheme. (It should be borne in mind that Central Chiswick and East Chiswick One (EC1) were designed and costed as a single scheme and then split into two during implementation. All the costs of implementing the two schemes were charged to the Central Chiswick scheme). 4.6 In summary the CPZs in Chiswick are forecast
to generate £2,176k in 2001/02, but in
order to generate this income the Council needs
to spend £ 1,068k. In addition the Council's
base budget assumes that these CPZ schemes
will generate a surplus of £802k in 2001/02.
Current projections show that the CPZs in Chiswick
will generate an additional £305k over
and above the budgeted surplus, (see Appendix
1). 4.7 The budgeted surplus will be transferred to the PRA at the end of the financial year. 5.0 Funding of CPZ Implementation 5.1 The total cost of implementing each CPZ scheme is shown in Column F of Appendices 1 and 2. Schemes are funded from a combination of Section 106 monies, parking income and specific capital grants / borrowing approvals. 5.2 West Chiswick CPZ - a report to the 19th
November 2001 meeting estimated that the cost
of the scheme would be £300,000. The
Head of Finance comments on the report indicated
that £260,000 of the anticipated £350,000
Deed of Variation s106 monies from the Chiswick
Business Park development had already been
applied to the Central Chiswick Scheme. Since
that date a further £15,000 has been
spent on Central Chiswick CPZ. The former Senior
Assistant Director advised that applying the
Chiswick Business Park Development money to
Central Chiswick CPZ is in accordance with
the draft Deed of Variation which states that
the monies can be used for parking in the vicinity
of the development. 5.3 If no further expenditure takes place on
Central Chiswick there is potentially £75,000
available to be applied to West Chiswick scheme,
subject to the signing of the Deed of Variation
to the s106 agreement. This leaves a shortfall
of £225,000. 5.4 Lengthy negotiations between LB Hounslow,
LB Ealing and the Developer have resulted in
considerable delays in agreeing the detail
of the Deed of Variation to the Chiswick Park
s106 agreement. At the time of writing the
Deed of Variation had not been signed. Until
the Deed of Variation has been signed and the
money received no further expenditure should
be financed from this source. 5.5 Future s106 agreements that may contribute
to parking schemes in Chiswick ; 5.6 Funding from income - the Committee of the
Council have agreed to increase parking income
targets by approximately £1,000,000 in
2002/03. Only once the income targets contained
in the budget have been achieved can any excess
income be used to fund capital expenditure.
This excess income is unlikely to be significant
in 2002/03 given the budgetary increases already
agreed by the Committee of the Council. 5.7 Funding from PRA - previous year's surpluses
that are not applied in year are transferred
to the PRA. The funds in the PRA can only be
transferred with the agreement of the Committee
of the Council and used in accordance with
the 1984 Act (as amended by 1999 GLA Act).
The amendment allows PRA money to be used to
facilitate the Mayor's Transport Strategy -
this includes spending on parking schemes. 5.8 The Borough Spending Plan guidance for 2003/04
from Transport for London invites Councils
to submit proposals for new CPZ schemes. Area
Committees will be invited to participate in
formulating bids between April and June 2002. 5.9 Work on CPZ scheme implementation can not
commence until full funding has
Appendix 3 Parking Reserve Account £ 1993/94 Defecit from Parking Activities - 246,843 1994/95 Surplus from Parking Activities 67,754 1995/96 Surplus from Parking Activities 64,583 1996/97 Surplus from Parking Activities 565,565 1997/98 Surplus from Parking Activities 81,360 Balance in Parking Reserve Account at 1/4/98 532,419 Transfer to Street Lighting - 200,000 1998/99 Surplus from Parking Activities 103,312 Balance in Parking Reserve Account at 1/4/99 435,731 Transfer to Concessionary Fare - 200,000 Transfer to Bus Subsidy budget - 38,000 1999/00 Surplus on Parking Activities 262,467 Balance in Parking Reserve Account at 1/4/00 460,198 Transfer to Bus Subsidy - 65,600 2000/01 Surplus on Parking Activities 308,644 Balance in Parking Reserve Account at 1/4/01 703,242 2000/01 Surplus from PA Service activities 216,500 VAT Refund 56,541 Concessionary Fares - 350,000 Hand Held Terminals (estimate) - 130,000 Bus Subsidies (maximum) - 202,000 CCTV (estimate) - 21,000 Road Safety - 30,000 Executive proposal - Tram Link Study - 60,000 2001/02 Estimated surplus on Parking Activities 466,000 Est.Balance in Parking Reserve Account at 1/4/02 649,283 Less 2002/03 committed expenditure Bus Subsidies (maximum) - 252,000 Est.Available Balance in PRA at 1/4/02 397,283
Notes 1) In the years proceeding 1997/98 the entire surplus on on-street parking activities was transferred to the PRA This was done to eliminate the Defecit made in 1993/94. Once the deficit had been eliminated only the surplus inexcess of the budget was transferred to the PRA. 2) In 1998/99 £289,384 of parking income was used to fund the implementation of CPZ schemes in Chiswick where other funding was insufficient. In addition the allocation of the PA Service costs between on and off street parking was revised. 3) The increase in Parking income in 1999/00 and 2000/01 budgets reflects the changes agreed during the budget. Appendix 5 PARKING CHARGES - RESIDENTS
PERMITS 1. The issue of differential charges for residents' parking permits has been considered by Council Committees on a number of occasions. When the former Environmental Services Committee considered a number of parking policy issues in 1999, it was advised that:- 'Different parts of the borough clearly have different characteristics. In the east of the Borough, parking demand is extremely high with only limited on and off-street provision. Generally the pressure on parking decreases further westwards in the Borough. Public transport accessibility also is generally better in the east of the Borough and poorer in the west. For these reasons, it is recommended that differential charges are maintained in the Borough with higher charges in the east and lower charges in the west. It is recommended that three different levels of charges are adopted. The highest charge would be for those areas inside the North Circular Road and the lowest charge would be to the west of Syon Lane. This would be in line with the existing situation with the three charges of £75 (East Chiswick, Mid-Chiswick and Bedford Park), £50 (The Butts, Brentford) and £30 (Hounslow, Hounslow West and Twickenham Road). The £30 charge was not increased last year
and therefore it is recommended that the charge
be increased to £35 per year from the
end of the calendar year. The £50 and
£75 charges have only recently been introduced
and therefore it is recommended that they are
kept at the same rate for the next two years.' 2.0 This recommendation was agreed by the Environmental
Services Committee and when considering a report
on residents' permit prices in July 200, the
Sustainable Development Committee also endorsed
this approach. 3.0 When parking permit charges were considered again last year, whilst it was felt that a differential in permit prices should be maintained, the actual differential in prices between the area situated between the North Circular Road and Syon Lane compared with the area inside the North Circular Road was considered to be too great and for this reason, it was decided to reduce the charge for a resident's permit in the Chiswick area from £75 to £70. SHORT STAY PARKING 4.0 As with residents' parking permits, charges
for short stay parking recognise that the area
of the borough that lies to the east of the
North Circular Road suffers the highest level
of traffic congestion and demand for on-street
parking space. It is necessary to impose charges
that reflect this in comparison to the part
of the borough lying to the west of the North
Circular Road. 5.0 Accordingly, charges for short stay parking operate on the basis of two charging regimes i) in the area to the east of the North Circular
Road - £1.00 per hour
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