AGENDA #3h

BUDGET WORKING PAPER

TO:                  W. Calvin Horton, Town Manager

FROM:            Kay Johnson, Finance Director

SUBJECT        Possible Parking Fee Increases

DATE:             April 27, 2005

The purpose of this memorandum is to provide proposals for possible increased parking revenues through additional fees and increases to the current fee structure. 

BACKGROUND

In preparation for reviewing Town parking-related fees, we have reviewed the “Ordinance Regulating Traffic and Parking on the Campus of The University of North Carolina at Chapel Hill”.  We have attempted to determine comparable fees for violations and services. See Attachment 1.

We have identified the majority of the differences between our fee structure and that of the University.  In light of those differences and in keeping with their rate schedule as established, we would offer the following recommendations:

1. Potential Fine Increase:

• Expired meter - Town Charge $15, University of North Carolina at Chapel Hill (“University”) Charge $15.  Meter violations continue to be the bulk of the violations that are cited by the parking enforcement staff.  These fines were increased from $10 to $15 in 1999. With the increase in traffic and need for turnover in the existing available parking in the immediate downtown area, it is important to encourage patrons to vacate these spaces in a timely manner.  Our fines are in line with that of the University as well as with cities our size. We do not recommend changes in the meter fine level.

• For each hour after a meter expires, University officers are able to issue an additional violation to the vehicle at $5 for each hour period that the vehicle occupies the space with an expired meter. The Town does not assess any additional penalty beyond the $15 for an expired meter. We recommend changing our current practice to allow an additional $15 violation be issued for parking a minimum of one hour beyond meter time limits.  We estimate revenues from the additional charges to be $18,000.

• Handicap violations are a major concern of the department. We believe that the current fine levels are not a sufficient deterrent to handicap violations.  Handicap violations receive a $250 fine from the University.  We recommend that the fine for Handicap violations be raised from $100 to $250. Such an increase would generate about $2,000 in additional revenue.

• It is also our concern that the current fine for the Booting Violation is no longer a deterrent for scofflaws.  We recommend that the Booting Fee be increased from $30 to $55, matching that of the University.  Such an increase would generate about $2,000 in additional revenue.

• We would also recommend an increase for all other fines from $40 to $50, bringing our fine levels in line with the University.  We estimate that such an increase would generate about $15,000 in additional fees.

2. Monthly Rate Increase:

Based on a survey of several local facilities, the average monthly parking for a leased space is $85 per space.  It is our recommendation that the monthly rental fee be increased from $80 to $85.  We believe that this increase will generate additional revenues of $15,700 per year.

3. Residential Permit Fee:

Currently the Town does not charge any fee for the residential parking program.  If the Town were to consider a fee associated with the residential permits of $10 per residential permit and $5 per guest permit, additional revenue of approximately $9,600 per year would be generated to cover the costs associated with the maintenance of this program.

4. Special Event Parking

On average, we provide monitoring for approximately 12 special events per year, with an attendant on duty 5 hours per event.  We recommend establishing a fee of $20 per hour for monitoring services for small events, with a 3-hour minimum charge for each monitor assigned.

We estimate this fee will generate an additional $1,200 per year.

CONCLUSION

If all fee changes listed above were instituted, the total revenue increase would be about $63,500.  Of the total, $44,600 would be available to the General Fund as a transfer from the On-Street Parking Fund.