Bel Air parking fund projected $140,000 gap; officials discuss leases, fees and long‑term fixes

Lisa, a town finance staff member, told the Bel Air Board of Town Commissioners on May 13 that the town’s parking enterprise fund is projected to run a shortfall in the coming fiscal year and recommended further study of policy changes to address the gap.

“We are anticipating again this year, expenses to exceed revenues by a hundred and $40,000,” Lisa said during the budget work session, summarizing the fund outlook and prompting a broad discussion of causes and possible responses.

Why it matters: the parking enterprise fund operates like a business under the town’s accounting rules; continuing deficits reduce retained earnings that the fund uses for operations and capital. Staff said the fund had about $1.7 million in retained earnings at the end of FY2024, but repeated annual losses are drawing that balance down and could limit the town’s ability to pay for future repairs to the garage and equipment.

Most of the board’s questions focused on two mechanics that drive the shortfall: (1) meter collections and leased spaces have declined from earlier years, and (2) the county reimburses Bel Air for 67.2% of parking‑garage operations and capital, a figure that moves with recorded expenses. Lisa described the county reimbursement as “tied to operations” and said the amount the town receives can vary with how much is spent running and maintaining the garage.

Board members and staff walked through the components of revenue and expense. Staff reported projected FY2026 revenues of roughly $125,000 from meters, $69,000 from leases and additional receipts from county reimbursements. Line items on the expense side include elevator maintenance, utilities for a 1,010‑space garage, insurance and depreciation; the town also budgets a $15,000 capital repairs reserve for the garage that is subject to the county reimbursement split.

Commissioners pressed staff for options to reduce the structural gap, suggesting several immediate and medium‑term changes: better marketing of available leased spaces, revising lease fees, evaluating charging patterns (for example, whether to charge after 5 p.m. or on weekends for busy events), and benchmarking other municipalities’ pricing and operational models. Commissioner Taylor suggested taking a “holistic” look at how the garage supports the downtown economy rather than simply treating it as a stand‑alone business.

Staff said they will research peer cities and bring back comparative data, a five‑year trend of leases and meter revenues, and options to increase occupancy and fee capture. Staff flagged one capital need that may arise soon — enclosing a stairwell on the Pennsylvania Avenue side — for which a late estimate approached $257,000; the county would pay two‑thirds if the work is approved.

No formal action was taken at the work session; commissioners directed staff to return with more detailed analysis and options for FY2027 decisions. The board agreed the issue warrants attention sooner than the next budget cycle.

Ending: Commissioners said they want a transparent, data‑driven series of follow‑up reports before any decisions to change pricing or operations and asked staff to present benchmarks and a five‑year revenue/lease history at an upcoming meeting.