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CR 2003-165 Rate Increase-Yearly/Quarterly Parking Permits• i•- November 6, 2003 Proposed Action Staff recommends adoption of the following motion: Move to approve an increase in the yearly and quarterly parking permit rates of 7.7% and 5.3% respectively, with new 2004 rates in the amount of $140 per year and $40 per quarter. Overview Current ramp and municipal lot parking permit fees are $2 per day, $15 per month, $38 per quarter and $130 per year. An increase in the yearly and quarterly parking permit rates would help to offset increasing maintenance costs relating to the public parking lots and the aging municipal ramp. Staff recommends that the yearly parking permit rate be increased to $140 per year, representing a 7.7% increase over the 2003 rate of $130. In addition, staff recommends that quarterly parking permit rates be increased to $40 per quarter, representing a 5.3% increase over the current 2003 rate of $38. Costs for daily /single event and monthly permits would remain unchanged. Primary Issues to Consider • Why increase parking permit rates? • Past permit rates. Steven J. Stahmer Assistant to the City Manager G ITY OF HOPK Rate Increase - Yearly /Quarterly Parking Permits Council Report 2003 -165 Financial Impact: $ Budgeted: Y/N Source: Related Documents (CIP, ERP, etc.): Notes: Year Parking Rates (Yearly /Quarterly) 2003 $130/$38 2002 Unchanged 2001 $120/$35 2000 Unchanged 1999 Unchanged 1998 Unchanged 1997 $110/$32 1996 $105/$30 1995 $100/$28 1994 $96/$26.75 1993 Unchanged 1992 $92/$25 • • Analysis of Primary Issues • Why increase parking permit rates? Inflation and increasing maintenance costs, due largely to the aging municipal parking ramp, continue to put pressure on the City parking fund. The proposed rate increase is intended to help keep pace with such expenses and has been recommended by the Finance Department. The parking fund (Fund 214) is projected to have a 2003 year -end balance of approximately $285,000. Annual budget gaps in the combined programs of parking operations, enforcement and the parking ramp are subtracted from the parking fund each year. The fund balance decreased by approximately $57,000 in 2002. In 2003, the projected decrease in the parking fund is expected to be much less (potentially under $10,000, depending on maintenance costs between now and year end), largely due to maintenance operations that have been deferred until 2004. The current 2004 parking fund budget indicates a projected decrease of $48,000 from Fund 214. If the parking fund were to lose, on average, $30,000 per year, the fund could be expected to last less than 10 years. • Past permit rates. The above annual permit rates reflect an average annual increase of 3.2% over the period of 1992 and 2003. If the proposed 2004 increase were to be approved, the average annual increase between 1992 and 2004 would be 3.6 %. In contrast, actual total parking fund expenditures increased an average of 5.2% per year between 1997 and 2002. Staff Recommendation Staff recommends approving an increase in the yearly and quarterly parking permit rates of 7.7% and 5.3% respectively, with new 2004 rates in the amount of $140 per year and $40 per quarter.