Cash earmarked to cover possible funding shortfall (From Gazette & Herald)

Cash earmarked to cover possible funding shortfall

TALKS have begun on Ryedale District Council's budget next year - and parking charges have already come under the spotlight.

Councillors are still refusing to reverse the 25 per cent rise in charges introduced last year to cover a budget shortfall of £171,000.

Since then, a £261,000 surplus was found, but the council used the money to help the flood-hit areas of Helmsley, as well as its Community Investment Fund.

Now, the Government has agreed to pay around two thirds of the cost of the floods bill, but the money will still not be used to bring down parking charges. Instead, it will go into a new Investments, Contingency and Emergency Fund.

Facing the budget for 2005/6, the authority's chief financial officer, Trevor Teasdale, has earmarked £100,000 of the council's general reserves to cover the possibility of another shortfall, to prevent the same situation repeating itself.

But at a meeting of the council's policy and resources committee, members took issue with a report on the budget strategy drawn up by Mr Teasdale over the future of parking charges. It states: "In the case of car parking charges, members have agreed that there should be no increases above inflation for the remaining term of this council. However, that where possible, other fees and charges should be increased above the rate of inflation."

Coun Richard Murray-Wells said they had agreed not to raise parking charges at all in the next two years following last year's hike of 25 per cent.

Coun Elizabeth Shields said: "It is my quite clear and distinct recollection that this council said right across the board that there would be no parking increase for the life of this council. We said that and we should stick by it." The report was amended at councillors' request.

On the authority's share of the council tax bill, Coun Keith Knaggs said that, subject to the Central Government Grant, he would like to see no increase.

"I would like to suggest that the target should be zero, but clearly there is a clause within that to say that is subject to the amount received from the Government," he said.

But Councillor Allin Jenkins said he was concerned that any ambitions must be achievable.

"Zero per cent is what we're aiming for but is it achievable?" he said. "Remember people's concern when we put up car parking charges and had to close toilets, and some are still under threat."

He added: "We've got to look at Hambleton District Council, which kept its council tax low and was capped by central Government."

Coun Helen Schroeder said she would like to amend the statement to say that the increase would not be higher than inflation, and councillors agreed.

Updated: 12:18 Wednesday, October 19, 2005