Item 6 - TEC Draft Revenue Budget & Borough Charges 2018/19 (TECE16/11)

Summary    

This report details the outline revenue budget proposals and the proposed indicative borough subscription and charges for 2018/19.

The Executive Sub-Committee is asked to comment on these outline proposals, with particular consideration to the three specific proposals detailed at paragraph 4, in order that any comments can be consolidated in the further report for the main TEC meeting in December, where the detailed budget proposals and levels of subscriptions and charges for 2018/19 will be presented for approval.

Recommendations

The Executive-Sub Committee is asked to recommend that the main Committee approve at their meeting on 7 December:
•    The proposed individual levies and charges for 2018/19 as follows:
    The Parking Core Administration Charge of £1,500 per borough and for TfL (2017/18 - £1,500; paragraph 38);
    The Parking Enforcement Service Charge of £0.4226 per PCN which will be distributed to boroughs and TfL in accordance with PCNs issued in 2016/17 (2017/18 - £0.4915 per PCN; paragraphs 36-37);
    No charge to boroughs in respect of the Freedom Pass Administration Charge, which is covered by replacement Freedom Pass income (2017/18 – nil charge; paragraph 15);
    The Taxicard Administration Charge to boroughs of £338,182 in total (2017/18 - £338,182; paragraphs 17). 
    No charge to boroughs in respect of the Lorry Control Administration Charge, which is fully covered by estimated PCN income (2017/18 – nil charge; paragraphs 19-20);
    Road User Charging Appeals (RUCA) – to be recovered on a full cost recovery basis under the new contract arrangements with the GLA (paragraph 28);
•    In addition, after considering the specific proposals outlined at paragraph 4, the Executive-Sub Committee is also asked to recommend that the main Committee approve at their meeting on 7 December:
    A unit charge of £12 for the replacement of a lost or damaged Freedom Pass (2017/18 - £10; paragraph 10);
    Environment and Traffic Appeals (ETA) charge of £30.63 per appeal or £27.02 per appeal where electronic evidence is provided by the enforcing authority (2017/18 - £32.00/£28.50 per appeal). For hearing Statutory Declarations, a charge of £25.21 for hard copy submissions and £23.53 for electronic submissions (2017/18 - £26.74/£26.06 per SD) (paragraph 27);
    The TRACE (Electronic) Charge of £7.53 per transaction (2017/18 - £7.31; paragraphs 29-35);
    The TRACE (Fax/Email) Charge of £7.70 per transaction, which from 1 April 2018 would be levied, in addition to the electronic charge of £7.53 per transaction, making a total of £15.23 (2017/18 -   £7.48; paragraphs 29-35);
    The TEC  Charge of £0.175 per transaction (2017/18 - £0.17; paragraphs 29-35).
•    The provisional gross revenue expenditure of £368.775 million for 2018/19, as detailed in Appendix A; and
•    On the basis of the agreement of all the above proposed charges as outlined in this report (including those at paragraph 4), the provisional gross revenue income budget of £368.486 million for 2018/19, with a recommended transfer of £289,000 from uncommitted Committee reserves to produce a balanced budget, as shown in Appendix B.

The Executive-Sub Committee is also asked to note:

•    the current position on reserves, as set out in paragraphs 52-55 and Table 9 of this report; and
•    the estimated total charges to individual boroughs for 2018/19, as set out in Appendix C.1.