Missoula Parking Commission previews FY26 budget, seeks to fund LPR and three new staff/equipment requests

The Missoula Parking Commission on Tuesday reviewed preliminary revenue and expense projections for fiscal year 2026 and identified three new spending requests plus a capital project to replace gated access with fixed license-plate recognition (LPR).

Jody (Director, Missoula Parking Commission) told the commission the board will be asked to approve the finalized budget at its June meeting and that the materials being presented were a preview to elicit questions. “This agenda item is to give you all a heads up on where we are, with the budget right now and what you'll be asked to approve next month,” Jody said.

The staff projection shows modest revenue increases in several categories if recent policy changes and operational trends hold. Ticket revenue was projected to increase by roughly $3,100 for FY26 based on year-to-date collection rates and a five‑year averaging method; meter revenue is expected to rise by just over $10,000; short‑term garage revenue by nearly $5,000; permit revenue by about $2,500 after an April 10% permit increase; and lease parking revenue by roughly $116,000 after a board-approved 10% increase for areas with wait lists. The new residential parking permit (RPP) rate increase from $45 to $65 is expected to add about $12,500 to special parking revenue.

On the expense side, Jody said personnel will be the largest cost driver, but final figures depend on upcoming citywide pay decisions and the outcome of collective bargaining for union employees. Utility assumptions supplied by the city finance department include a 3% increase for electricity and natural gas, 8% for water, 9% for sewer, 5% for postage and freight, and a 5% increase for the accounting contract. The commission paid off meter debt in FY25 but will carry new debt related to the Bank Street parking structure; staff will present a debt‑service plan when the budget returns in June.

Staff also highlighted several known and one‑time changes: a new $1,620 annual internet expense for remote access to Park Place garage cameras; an estimated $12,000 annual cost tied to a newly required 15¢ per‑transaction fee on credit card transactions after a mandatory card reader upgrade; and a $900 rent increase for the Midtown lot behind Warden’s Market.

New requests for FY26 total $161,605 and include: converting a 0.8 FTE administrative specialist to 1.0 FTE to provide Friday coverage and relieve other office staff; installing license‑plate recognition (LPR) units on retired gas scooters to provide backup enforcement capability and preserve utilization data while electric scooters are frequently offline; and purchasing an additional maintenance trailer to speed snow removal and reduce concrete damage in lots and structures. Staff requested approval to include a CIP in FY26 to install fixed LPR in gated facilities; Jody said fixed LPR would reduce friction for users, decrease maintenance on gates, enable daily parking options, and provide better data to manage oversells and wait lists.

Brenda (accounting contact, JCCS) presented March financial statements noting a cash balance aligned with the city’s records after reconciling transfer differences and a $133,000 pledge received from the Missoula Redevelopment Agency (MRA), $128,000 of which reduced a receivable. She said March produced a strong meter revenue month and that an audit adjustment recognized roughly $100,000 in lease revenue in the current fiscal year, improving year‑to‑date results. As of March, total revenue year‑to‑date was about $2.27 million with operating net income ahead of budget.

Jody said staff will bring the finalized FY26 budget, debt‑coverage calculations and specific plans for Bank Street financing to the commission in June; consultants Baker Tilly and Dorsey Whitney will attend that meeting.

Ending: The commission did not take a final vote on the FY26 budget Tuesday; staff will return with a full budget and debt‑service proposal for board approval in the June meeting.