City finance staff updated the council May 21 on the condition of the municipal parking fund and warned of continuing structural shortfalls after COVID-era declines and flood-related disruptions.

Finance Director Sarah LaCroix said the parking fund produced a roughly $235,000 deficit in 2024; the city used one-time budget adjustment funds of about $215,000 to plug that gap. With downtown foot traffic and state-worker presence reduced and construction-related displacements, meter, ParkMobile and ticket revenues have not fully recovered.

LaCroix said the fund still carries a reserve balance but multiple poor-performing years would erode it and leave no funding for lot maintenance, meter replacement or capital repairs. She told the council that staff curtailed nonessential maintenance and scaled back enforcement and services to reduce the shortfall; the council discussed longer-term policy responses.

Councilors and public speakers suggested options that include temporary suspension of on-street meter enforcement, creating affordable employee parking lots off-street, renegotiating private parking-lot leases, and convening downtown business representatives in a formal process to evaluate parking strategy. One councilor said a subcommittee is warranted to address the problem urgently.

No formal action was taken; staff asked for direction and the council agreed to continue the conversation and to involve downtown business stakeholders in a follow-up discussion before the next budget season.