Parking is an Enterprise Fund, operating on revenue collected from garage leases, garage hourly parking, on-street meters and parking violations.  The division also receives $100,000 yearly from the Tax Increment Fund unless there is a special project granting the Parking Division additional funds.  In the FY 17 Parking budget, expenses exceed revenues despite this infusion of Tax Increment.  The working capital is able to balance the budget this year but cannot do that indefinitely.  The Parking Division continues to cut expenses where it is feasible.  There are major Capital Projects that must be budgeted in future years, such as the third phase of the Garage Restoration Project, replacing the cast iron drainage pipes throughout the garages and for striping the parking spaces in the downtown core. Furthermore, the Parking Strategic Plan recommends establishing a maintenance reserve fund for future garage repair projects.  Therefore, the Billings Parking Board and City Parking Staff are proposing modest parking meter and garage rate increases in order to meet future goals.

City Council should conduct the advertised public hearing and then may:
1.  Accept the recommended changes approved by the Billings Parking Board and the City staff and approve the attached rate resolution.  This alternative is expected to increase revenue by $54,333 for FY 2017, $83,825 for FY 2018 and $86,266 for FY 2019. (Note: FY 2017 rate increases would begin in November 2016 resulting in 8 months of revenue at the higher rates.)
2.  Do not approve the rate resolution and leave rates unchanged.   This action would result in the immediate need to find other means to cover operations and capital replacement.
3.  Make other changes to the Parking Division's rate structure to generate the same amount of revenue as Alternative 1.

The proposed changes are expected to generate an additional $224,424 in parking revenue over 3 fiscal years.  The proposed rates and revenue are as follows: 
1. Garage Lease Rates
         a. Monthly Roof -        $26.25     $27.50     $28.75
         b. Monthly Covered -   $52.50      $55.00       $57.50
         c. Monthly Assigned - $105.00     $110.00     $115.00
         d.  TOTAL ADDITIONAL ESTIMATED REVENUE RECEIVED IN 3 YEARS - $131,091
(The rates are listed as consecutive years fiscal years 2017, 2018 and 2019)
2.  Garage Hourly Rates:
        a.  1st Hour - Free
        b.  Each additional hour $1.00 up to a maximum charge of $7.00
        c.  TOTAL ADDITIONAL ESTIMATED REVENUE RECEIVED IN 3 YEARS - $40,000
3.  On-Street Meter Rates
        a.  Approximately 150 Credit Card Meters with 3 HOUR MAX - $1.00 per hour for hours 1 and 2 with the option of paying $2.00 for
            the 3rd hour.  These meters would be mostly located in the downtown core area with high parking turnover.
            (ex.  If someone parks at a credit card/smart meter for 3 hours, it would cost them $4.00.)
        b.  Approximately 637 remaining meters - .75 cents per hour.
        c.  68 ten hour meters would be replaced with 10 hour signed parking.  Permits are required for purchase for $20.00.
        d.  TOTAL ADDITIONAL ESTIMATED REVENUE RECEIVED IN 3 YEARS - $53,333

 

The last parking rate increase was in 2012.  Standard meters went from .35 cents per hour to .50 cents per hour.  The 27th St. Lot leased spaces went from $50.00 per month to $75.00 per month.  Citation amounts also increased. The proposal to increase garage lease rates failed.  Despite taking several cost saving actions, the FY 13 budget expended the Fund's remaining reserves.  

The 2016 parking rate increases have been discussed for many months, including during the FY 17 budget presentations to City Council.  The Parking Board worked on the rate proposal from March 2016 through July 2016.  The 2014 Downtown Parking Strategic Plan recommends increasing parking rates in order to update the city's parking technology, establish a maintenance reserve fund and establish Parking as a downtown economic development partner.   

The Billings Parking Board (BPB) is composed of downtown business owners, property owners or their representatives, community representatives and City employees.  The Board advises the City Council about all matters dealing with downtown parking.   Their meetings are open to the public.  Staff presented the BPB approved rate proposal and on-street equipment upgrade at a DBA Board meeting, at 2 public forums organized by the DBA and at the August 15, 2016 City Council work session.  The City Council will conduct a public hearing on September 12, 2016 and additional downtown business and property owners may attend and testify.