FY 24 Budget Q&A #045: What would an hourly increase in garage parking prices look like for revenue?
Page updated on October 28, 2024 at 10:25 AM
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Question: What would an hourly increase in garage parking prices look like for revenue? (Councilman Chapman)
Response:
Using garage data from Jan-Dec 2022, staff estimates the following increase in revenue if the City were to raise the garage prices from $2/hour to $3/hour:
Revenue estimates are based on the following assumptions:
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Occupancy data for the calendar year rather than the fiscal year was used to capture occupancy trends more reflective of parking conditions as the impacts of the pandemic lessened.
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These figures assume a 10% decrease in occupancy/utilization, due to the increased rates.
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The majority of the transactions at North Union and Thompsons Alley are on evenings and weekends, which max out at $5 and would not be impacted by an hourly rate change.
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Staff did not include the Courthouse Garage in this analysis, as in September 2022, the hourly rate in the evening and weekends was reduced to $1/hour (max $5) to encourage utilization. Despite this reduction, this garage is still underutilized and an increase in rates may discourage increased usage and revenue.
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New garage equipment was installed in February 2023 which does not accept coins. Any changes to rates must be whole dollars.
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Maximum daily rates are assumed to remain unchanged.