AGENDA #5b
BUDGET WORKING PAPER
TO: W. Calvin Horton, Town Manager
FROM: Mary Lou Kuschatka, Transportation Director
SUBJECT: Proposed Parking Rate Increases
DATE: April 3, 2002
This memo identifies changes in the parking rates for the Town of Chapel Hill that would result in increased revenues.
During the budget work session of March 1, 2002, it was reported to the Council that the Town staff was in the process of reviewing changes in the rate structure for both on-street and off-street parking operations. There has been no increase of the general rate structure since 1993.
Monthly Rates: Based on a survey of several local facilities, the average monthly parking rate for a leased space is $70.00 per space. It is our recommendation that the monthly rental fee be increased from $65.00 to $75.00. We believe this increase would generate additional revenues of about $23,000 in 2002-2003.
Meter Parking Rates: In addition to monthly rates, the staff was also asked to consider increases in the fee structures for meters and off-street staffed facilities.
We reviewed the meter rates as compared to other localities. The majority of localities charge $1.00 per hour, which is our current rate. However, one other locality in the Triangle area is charging $1.50 per hour. Based on our review, we recommend an increase of the current rates for both off-street and meter parking to $1.25 hourly, or $ .25 for 12 minutes.
Off-Street Parking: Based on the actual revenue figures from FY 2000-2001, The Rosemary Street Garage generated $481,000 and Lot 2, $363,000, for a total of $844,000. We expect that fees would generate about $865,000 next year if there is no increase in charges. We estimate that the change in fees would generate additional revenues of about $173,000 next year. The new fees would be as follows:
Current Fees Proposed Fees
0 – 4 Hours $.50 per ˝ hour 0 – 4 Hours $.60 per ˝ hour
4 – 6 Hours $1.00 per hour 4 – 6 Hours $1.25 per hour
6 + Hours $1.20 per hour 6 + Hours $1.50 per hour
This revenue could replenish the $100,000 transferred from the Parking Fund to the General Fund to help cover this budget shortfall, and would begin to build a reserve that may be needed to help pay Parking Fund debt if the Council decides to develop some portion of Lots #2 or #5.
Off-Street Meters: In conjunction with this recommendation, we also recommend a comparable change in meter fees in off-street lots. The actual revenue figure for meter fees in off-street lots for FY 2000-01 was $70,000. We estimate that revenues from this source would be about $70,000 with no change in fees. With the recommended change in fees, we believe additional revenues of $14,000 would be generated in 2002-2003.
On-Street Meters: We also recommend a similar increase for on-street meter operations. This could be accomplished by a reduction in the amount of time given per coin.
The current meter rates are as follows: The recommended meter rates are as follows:
Length of Stay Rate Length of Stay Rate
3 minutes $0.05 2 minutes $0.05
6 minutes $0.10 5 minutes $0.10
15 minutes $0.25 12 minutes $0.25
60 minutes $1.00 60 minutes $1.25
Additional revenues from on-street meters are estimated to total about $47,000. This amount would be transferred to the General Fund.
· The Town could increase parking revenues by an across the board adjustment of the parking fees.
· The increase of the lease fee from $65 to $75 would generate about $23,000 in increased revenue.
· We estimate that additional revenue from Lot 2 and the Rosemary Street deck would total about $173,000.
· Added revenue from off-street meters would be about $14,000.
· Extra revenue from on-street meters would be about $47,000.