City parking deficit projected to grow

With a budding paid parking program in place, the city’s parking division is budgeted to generate $1.7 million in revenue in fiscal year 2018-19, growing more than 20% over the previous year.

And yet, the department is projected to post its biggest deficit in the past decade — a loss of $634,000. That’s nearly a 30% increase over this year’s estimated $492,000 deficit. The preliminary budget calls for a $230,000 general fund subsidy for the division, leaving less than $200,000 in the parking reserve fund.

The city’s parking operations continue to expand. The proposed budget includes $3.3 million in parking-related expenditures, including the establishment of a new parking garage and metered parking program on St. Armands Circle.

Although the parking division is requesting three new full-time and two new part-time employees on the Circle, the St. Armands parking program is budgeted to generate a profit in its first year of operation. St. Armands will be the home of the city’s first on-street paid parking program since officials removed meters from downtown in 2013. Parking staff estimates the initiative will generate more than $1 million in revenue.

The City Commission on Monday approved spending $382,000 toward the purchase of pay stations and parking meters to be installed on St. Armands Circle.

Parking Manager Mark Lyons said staff conducted multiple public surveys, working to ensure visitors would be comfortable using the new equipment.

He expressed confidence the city would avoid the issues associated with previous paid parking endeavors, which generated complaints about the interface of the parking meters.

Although Lyons said most survey respondents were familiar with paid parking equipment, staff intends to conduct an educational campaign when the meters are activated this winter.

“It’s not completely foreign to them out there, but I still think we need to bridge the gap, for sure,” he said.

Lyons has previously advocated for an expanded on-street paid parking program as an opportunity for eliminating the division’s deficit — and for better managing in-demand spots on Main Street and elsewhere. The City Commission has been hesitant to pursue that opportunity.

As a result, Lyons said he would look at other options for increasing revenue or reducing expenses until directed otherwise. He said the city could consider reducing the amount of free time offered in garages or raising the rates associated with existing parking revenue streams.

Lyons said those options could be discussed as soon as a July 9 budget meeting.

“We’re trying to explore all alternatives for reducing the subsidy and the deficit,” Lyons said.