Flagstaff council explores parking rate hike to fund downtown services through FDBIRD

Flagstaff City Council is exploring significant changes to enhance downtown services and address declining tourism revenue. During the Budget Retreat on April 25, 2025, council members discussed amending the Intergovernmental Agreement (IGA) with the Flagstaff Downtown Business Improvement and Revitalization District (FDBIRD) to potentially allocate up to $500,000 for improved downtown services.

The proposed funding would likely come from increased parking rates and other revenue sources, including tourism and beautification initiatives. Current data indicates a concerning trend in tourism, with occupancy rates down by 3.6% and overall revenue per available room decreasing by 5.8%. This decline is attributed to both international uncertainties and domestic travelers being more cautious with their spending.

To combat these challenges, the council is considering a phased approach to increase parking fees, which would allow for enhanced cleaning and maintenance services in downtown before the rate hike takes effect. A preliminary analysis suggests that a 20% increase in parking rates could generate additional revenue, with 75% of the increase earmarked for downtown enhancements through the DBA, while the remaining 25% would support ParkFlag's operational costs.

The timeline for implementing these changes includes a public notice period leading up to a potential rate adoption in September 2025. Council members emphasized the importance of demonstrating immediate benefits to the community before any fee increases are enacted, ensuring that residents and visitors alike can see the value in the proposed enhancements.

As the council moves forward, they aim to balance the need for increased funding with the community's expectations, all while striving to revitalize Flagstaff's downtown area and improve the overall visitor experience.