titlepage/contents pg 1-16 - British Parking Association

Funding and the Parking Business Plan 165with a forecast out-turn for thecurrent year and a subsequentperiod. The assumptions in theforecasts about changes tocharges and expenditures willneed to be made clear. Anoverall indication of how theparking account can bestructured is shown in Table10.3.There is a need to bring all thecosts associated with parkingwithin the parking account. Inthis way any subsidies or crosssubsidiesor privileges for certainusers are exposed, requiringjustification in the business plan.In addition, the costs of parkingcan be compared with the costsof other transport provision, sothat priorities can be decided inthe light of true comparativecosts.The parking account shouldcover the return on capitalborrowing or asset values as wellas all income and expenditure.Asset values may derive fromthe opportunity costs of retainingcar parking rather thandeveloping a car park site for amore profitable use. Resourceaccounting may be relevanthere.The largest element of theparking account is likely to be theincome generated by parkingcharges for either or both onstreetand off-street spaces.Penalty charges forinfringements and overstayingcan also be a major element ofthe overall balance sheet. Onthe cost side of the equationoperational and maintenancecosts, including maintenance ofthe asset value of parkingfacilities, tend to consume thegreater part of the income.Table 10.3 The Parking Account.IncomeExpenditureA: Direct costs of operation for each individual car park● Parking charge income at off-● Supervision costsstreet car parks● Cash collection and handling● Cleaning● Utilities● ConsumablesHence “operating profit” calculated per car park and per spaceB: Costs and revenues from enforcement● Parking penalties received● Enforcement costsHence (A +B) “profit” calculated per car park and per spaceC: Other infrastructure costs and revenues● Other income streams (advertising, ● Maintenance costsassociated services etc)● Business ratesHence (A+B+C) “profit” calculated as return on current facilitiesD: Infrastructure investment costs● Asset value of investment(calculated as an annual cost)or loan repaymentHence (A+B+C+D) economic return on off-street parking operationE: Direct costs of operation of on-street spaces● On-street revenue● Cash collection and handling● Utilities● ConsumablesHence (E) “operating profit” calculated per spaceF: Costs and revenues from on-street enforcement● Parking penalties received● Cost of enforcement, including“backroom costs”. Costscalculated per parking spaceHence (E+F) “profit” calculated per spaceG: Infrastructure investment costs● Review of parking orders● Maintenance of signs andmarkings● Asset value of investment(calculated as an annual cost)or loan repaymentHence (E+F+G) economic return on off-street parking operationH: Management Costs● Cost of managing the systemHence (Sum A-H) overall return on parking operation