There were three revenue boosting measurements for the City recommended by the Act 47 team in its 2014 recovery plan: one, raise the property tax millage rate; two, get the Parking Authority to raise rates at garages and lots and transfer money to the City; three, adjust fees and service charge revenues. While it could be argued that the large turnout at a public meeting last night in reaction to a proposed rental fee might fall under number three, and the proposed millage hike is in committee, the last revenue action came up for discussion today.
See much of our 2010 Policy Briefs for discussion of the proposed parking lease and the eventual “infusion of value” plan that dedicated parking tax revenue through 2041 to the pension system. Right now the annual amount is just over $13 million, but by 2018 the annual contribution is to double. Noting that when that infusion of value plan came about Council passed legislation to “…confirm its intent for the City to amend existing agreements with the [Parking] Authority to ensure that the City receives the revenue generated by the increased parking meter rates in order to offset some of the aforementioned diverted parking tax revenue”.
The current proposal would amend a handful of agreements on meters and specific lots and garages that date back to the 1980s in some cases. Along with the rate hike that took effect in August (and will occur in subsequent years) the City can stand to gain a significant revenue boost by way of parking activity.
