Agenda item

            (Mrs. R. Crozier, Assistant Director of Parks and Leisure, attended in connection with this matter.)

 

            The Committee considered the following report which outlined a proposed scale of charges for the use and hire of Council facilities in 2015/2016:

 

“2     Key Issues  

 

2.1    Ratepayers transferring from Lisburn and Castlereagh will face an increase in their rates bill as a result of convergence in 2015/16. It is therefore important that the Council considers the impact of converging prices for comparable services for transferring areas to ensure that where practical no further adverse impact for ratepayers or customers arises from local government reform.

 

2.2    As part of the service convergence preparations and engagement with Lisburn City Council (LCC), Castlereagh Borough Council (CBC) and North Down (ND), it had become apparent that the scope of services, and associated scale of charges (prices) applied across the councils differ. It was also apparent that whilst each council delivered similar services, they do not deliver them in the same way, and it is therefore difficult to undertake an exact like-for-like comparison.

 

2.3    Further analysis undertaken by BCC Officers on prices relating to services provided by Belfast, Lisburn, Castlereagh and North Down, indicated that the Belfast level of charge is generally lower than that of the other Councils.  As a general principle, it is therefore proposed to apply Belfast prices to transferring areas which will mean that in the majority of cases transferring users and residents will experience a reduction in service prices.

 

         The analysis identified that for street trading licences the Belfast service charge is significantly higher than that of the transferring area and in these circumstances it is proposed that a phased approach will be taken to the introduction of the Belfast prices.

 

         Scope of Fees & Charges

 

2.4    Members will be aware that the Council currently applies a range of fees and charges for various services as set out below:

 

·        Many fees are statutory in nature, such as Entertainment Licences and Births, deaths, Marriages and Civil Partnership registration.

·        Other charges are discretionary in nature and are applied to contribute to the cost of service provision, often subsidised in part by the rate. For example outdoor leisure.

·        Some services trade using a commercial model (e.g. commercial waste collection). 

·        Please be aware that Belfast Zoo, Malone House, Waterfront Hall, Ulster Hall and Belfast Castle are not included within the scope of this report as there are no comparators in the transferring areas.

 

         2015/16 Rate Setting Context

 

2.5    The price comparison information included in this report is based on the 2015/16 pricing assumptions included in the revenue estimates for 2015/16. Any further proposed changes to BCC pricing would be considered as part of the 2016/17 revenue estimates cycle, and in-line with the proposed Pricing Policy due to go to committee in February.

 

         Service Continuity and Bookings

 

2.6    In the interest of business continuity, Belfast have agreed to honour any bookings taken by LCC/ CBC that transcend 01 April 2015.  This mainly relates to outdoor leisure arrangements.

 

         Baseline Assessment - service provision / associated pricing

 

2.7    Published on mod.gov is a detailed baseline assessment undertaken which compares, where possible, those Belfast City Council services, and associated pricing applied, to similar services provided by LCC, CBC and ND. It seeks to identify any differentials in pricing which need to be managed as part of the service convergence process.

 

2.8    The detailed analysis identified one instance where a significant difference may be experienced if the Belfast price is applied to street trading licenses; there are minimal variances in the majority of charged services provided.  Significant is defined as being a sudden and adverse increase in price for recurring services, as a direct result of the boundary extension, when converging the transferring area price to the Belfast price.

 

         Where the difference in price is higher for one off services, the Belfast rate will apply.

 

2.9    Indoor Leisure

 

         In relation to pricing for Indoor Leisure, GLL (Greenwich Leisure Limited), as part of their contract, have committed to honouring Belfast City Council’s current core and concessionary prices within for the first 9 months from the commencement date, and not to introduce any changes without written consent of Council, except the discretion to apply a rate of inflation increase already agreed by Council. GLL will operate the Brook Activity Centre, Belvoir Activity Centre, and Robinson Centre which are due to transfer on 01 April 2015.

 

3       Resource Implications

 

         The assumptions applied by services in relation to pricing convergence have been considered within the context of the 2015/16 revenue estimates.

 

4       Equality and Good Relations Implications

 

         All recommendations outlined will be taken forward within the context of the Council’s equality and good relations frameworks.  Communications in relation to pricing will be as per all existing Council processes and channels (e.g. City Matters, website).

 

         Members are asked to note that BCC have historically adopted a greater level of enforcement when compared to LCC/ CBC. To effectively manage the knowledge gap with residents and traders, Officers propose to implement an awareness and educational approach in the first instance to inform residents and traders about BCC’s proactive approach to enforcement and provide guidance on how to be compliant.

     

         Recommendations

 

5       In order to ensure service continuity as part of the boundary extension, specifically to ensure that ratepayers and service users feel no, or limited, impact from the boundary extension in relation to pricing, the following approach is recommended:

 

(i)     Apply Belfast prices as of 1st April 2015 to all comparable services except where there is a significantly higher price in Belfast.

 

         This would mean:

 

·        BCC services will continue with one pricing model which will reduce administration and potential confusion for customers and officers.

·        Where the Belfast price is lower and is applied, transferring residents will automatically experience a saving for a continuing service.

·        This recommendation would apply to the majority of BCC services including:

 

-       Environmental Health

-       Waste Management

-       Cleansing (commercial waste, bulky household waste collection)

-       Outdoor leisure (includes pitches, allotments)

-       Community Centre use of facilities

 

(ii)   Apply a phased approach (over a 4 year period) to the price increase, where the Belfast price would be significantly higher

 

·        The phased approach will ease the cost increase to former LCC/CBC/NDBC residents

·        The approach will mirror the regional rates convergence scheme (i.e. support applied on a decreasing basis over 4 years)

·        This recommendation would apply to one main service area - Street Trading Licences

 

            A Member referred to a specific proposal which indicated that the hire cost for a full-sized 3G pitch within the new Council area would be set at £82.00. He pointed out that the cost in the former Lisburn City Council area had been £60.00, and the increased charge could place a financial burden on sports clubs, specifically those who had been users of the facilities at the Brook Activity Centre in Twinbrook.

 

            The Committee agreed to adopt the recommendation as set out in the report and endorsed the scale of charges, subject to the omission of the proposed charge in respect of the hire cost for a full-sized 3G pitch within the new Council area.

 

            It was noted that the Director would provide an update at the Shadow Strategic Policy and Resources Committee, scheduled for 13th February, which would clarify issues regarding the impact that the cost increase for 3G pitches would have on incoming Belfast residents who had previously hired pitches within the former Lisburn or Castlereagh areas.