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St. Paul HRA reviews parking enterprise fund, debt service and possible refinancing amid lower post-pandemic revenues
Summary
HRA staff briefed commissioners on the parking enterprise fund, noting revenues remain more than 50% below pre-pandemic levels, the fund primarily covers debt service and operations, and staff will return with refinancing proposals and an RFP for parking operators.
HRA staff provided an informational briefing on the agency's parking enterprise fund, noting that downtown parking revenues remain substantially below pre-pandemic levels and that net operating income is largely pledged to repay revenue bonds. The presentation previewed planned refinancings, an upcoming request-for-proposals for parking operators, and possible changes to the bond pledge for one underperforming ramp; no formal action was taken.
"Most of the parking enterprise fund supports the parking'it used to be once upon a time when the parking system made a whole lot of money before COVID," Director Newton said. Staff showed net operating income (NOI) fell from nearly $10 million in 2019 to roughly $4.1 million in 2020, with a continued drop in subsequent years and a 2025 budgeted income of about $3.5 million. Staff described how reserves built in stronger years were used to cover operations and debt service during the pandemic years.
Staff outlined several operational and capital steps taken or planned to stabilize the fund, including equipment upgrades for parking control systems, a forthcoming competitive RFP for parking operators, and a refinancing strategy to better align debt costs with current revenue. Jenny Wolf (staff) said the HRA is preparing refinancing that could remove one ramp from the pledged pool (the 7th ramp identified as underperforming) and adjust debt structure to provide more operational flexibility.
Key figures and finance notes presented: - Pre-pandemic (2019) net operating income: nearly $10,000,000. - 2020 NOI: about $4,100,000; 2021 saw deeper declines as contracts ended. - 2025 budgeted parking fund income: approximately $3,500,000 (staff said actual revenue may exceed budgeted amounts). - Pledged parking ramps: current outstanding balance described as nearly $20,000,000; annual debt service for pledged ramps ~ $2,200,000; Lawson Ramp annual debt service nearly $2,000,000. - Parking meter pledge/credit enhancement: the city currently shows a $3,000,000 pledge of meter-and-fine revenue in the general fund to support HRA bond credit; Jenny Wolf said that pledge functions as credit enhancement and "is never intended to be used" but supports lower borrowing costs.
Commissioners discussed reserve policy, whether to prioritize selling underperforming ramps and the city's broader policy goals about reducing vehicle miles traveled. Commissioner Hrabowski urged examining options to divest poorly performing ramps, noting long-term transit expansion and declining demand for parking. Director Newton and staff noted some ramps were structurally built to support housing above them and that market demand and corporate parking contracts sometimes influence ownership choices.
Staff also said the HRA used reserve and one-time revenues (including ARPA in recent years) to maintain operations and purchase control-system upgrades, and that a more conservative budgeting approach has been used since the pandemic; staff signaled they will present detailed refinancing proposals and further reserve analysis in upcoming budget sessions.
Ending: The presentation was informational; staff will return with an RFP for parking operators and specific refinancing proposals in the coming weeks for Commission consideration.
