Missoula Parking Commission adopts FY 2026 budget; approves $3.49M CIP for Bank Street repair

The Missoula Parking Commission adopted its fiscal year 2026 budget, approved capital requests including a $3,490,000 updated CIP for Bank Street garage repairs, and authorized moving forward with next steps to finalize financing.

Jody, the commission director, presented the proposed FY 2026 budget and CIP requests. The commission approved the budget by voice vote (three members present), with no public comments recorded on the motion.

Steve, a financial advisor with MCAT, summarized financing scenarios for the project and recommended pursuing a 20-year "wrap" structure with a private bank solicitation. Steve said the 20-year wrap "provides good flexibility. It keeps costs down overall," while balancing repayment flexibility and near-term coverage requirements tied to existing parking revenue bonds. He explained that a 15-year term would lower total interest costs but reduce revenue flexibility in the near term, and that smaller financings in the $4 million range point toward a bank sale (private placement) for flexibility and prepayment options.

The budget presentation included updated revenue and expense projections. Jody noted that city council approved fine increases that will go into effect Jan. 1, 2026; staff left parking-ticket revenue conservative because of uncertainty in how increased fines will affect citation volume. The budget lists projected revenues of $3,225,600 and shows an estimated debt-coverage metric above bond requirements under several scenarios.

Key budget details and capital requests approved or advanced:

- Bank Street garage repair: updated CIP request of $3,490,000 based on Jackson Construction estimates for repair rather than full replacement. - Fixed license-plate-recognition (LPR) system for garages: $123,004.55 (CIP request) to replace gates and enable different permit-sale approaches. - New operating requests: full-time conversion for an administrative specialist ($24,007.55), additional LPR units for scooters (~$125,000), and a maintenance trailer (total new operating requests ~$161,605). - Personnel expenses projected at $1,117,316, reflecting an assumed 3% COLA for nonunion employees and an estimated 4% for union positions pending collective-bargaining outcomes. - Current commission reserve fund: $966,000; staff estimated that approximately $285,060 of cash-on-hand would cover certain one-time items (fixed LPR and new requests), leaving a comfortable projected ending cash balance for FY 2026.

Jody discussed pedestrian-safety mitigations for a gateless fixed-LPR garage entry (rumble strips, speed humps, and signage) and said an RFP could include options for recommended traffic-calming features. Steve outlined next steps for financing: finalize project costs in early July, then issue a term sheet and solicit bank proposals to structure a flexible 20-year wrap loan.

The commission approved the FY 2026 budget as presented; staff will return on July 8 with updated financing details and a recommended term sheet.