Sioux Falls council committee approves plan to raise parking fines, approve phased permit increases and continue planning for paid parking pilot

The City of Sioux Falls Committee of the Whole on June 16 directed staff to increase citywide parking citations and to implement a phased increase to monthly downtown parking permits while continuing to collect occupancy data and advance planning for a paid-parking system.

Marcy Breyer, parking supervisor for the City of Sioux Falls, told the committee that the city is proposing to increase the base parking citation from $10 to $25 effective Jan. 1, 2026, and to raise citywide monthly parking permits from $35 to $50 on Jan. 1, 2026, then to $70 on Jan. 1, 2027 (staff also noted the option to move the permit increase directly to $70 on Jan. 1, 2026). Breyer said the city currently averages about 9,157 citations per year and collects roughly 75% of fines; at the higher citation level the city’s projected annual citation revenue (after the 75% collection assumption) would increase substantially. Breyer also described current booting (vehicle immobilization) practice: a vehicle becomes eligible for immobilization when past-due citations total $60 or more and are at least 30 days old, with a $50 immobilization fee and tow/impound fees added by tow vendors if applicable.

The motion approved by the committee directs staff to update ordinances and fee schedules and return with the implementing ordinance and fee language. Councilor Hannah Chrisman moved the motion; a second was recorded but not named on the public audio. The committee carried the motion by voice vote after brief discussion and no recorded roll-call tally. The committee did not take a separate vote tonight to adopt a paid-parking system; staff said that would return later for council consideration after a request for proposals and additional outreach.

Why it matters: parking enforcement and permit fees are part of the parking fund that covers enforcement salaries, equipment, parking kiosks, vendor transaction fees and lot maintenance. Breyer said the parking program currently projects a roughly $150,000 shortfall for the fiscal year and that the fee increases would move the parking program toward self-funding and reduce the need to draw on the city general fund.

Key details and numbers discussed - Citations: current base $10 → proposed $25 effective Jan. 1, 2026. City averages ~9,157 citations/year; collection rate ~75% (city estimate). Estimated additional annual net revenue from the citation increase: staff-calculated uplift after collection assumptions. - Monthly permits: current $35/month → proposed $50/month Jan. 1, 2026 and $70/month Jan. 1, 2027 (or single-step to $70 in Jan. 2026 if council prefers). City average monthly permit sales ~43 permits across downtown and College Hill. - Immobilization: eligible when outstanding citations ≥ $60 and 30 days past due; current immobilization fee $50; staff noted tow/impound fees are charged by towing vendors in addition to city fees. - Paid-parking proposal (conceptual, no ordinance adopted tonight): limit paid parking to the downtown core corridors (Main, Washington and State streets from First to Sixth) and five municipal lots; first hour free then $1 per hour thereafter; approximately 662 total paid spaces in the proposed paid-perimeter (about 340 on-street and 322 in public lots, the lot count includes roughly 60 spaces in the newly acquired U.S. Bank lot). Staff proposed installing pay-station kiosks at existing and new locations and offering pay-by-plate via kiosk or mobile app. - Enforcement hours: current enforcement Mon–Sat 9 a.m.–8 p.m.; staff proposed adjusting enforcement to Mon–Sat 9 a.m.–9 p.m. if a paid system is implemented; free parking Mon–Sat 9 p.m.–9 a.m. and all day Sunday would remain. - Occupancy monitoring: the consultant Fishbeck’s benchmarks were cited: plan for added parking when the downtown core regularly exceeds ~80% occupancy; actively add spaces when counts regularly exceed ~85%. Staff reported core-zone averages during the sampled counts of about 62.24% weekday occupancy and 77.89% evening/weekend occupancy; staff will continue monthly counts and present semiannual reports to council unless thresholds are exceeded.

Council and public concerns Councilors and stakeholders raised multiple concerns that staff said they would consider before any paid-parking ordinance is introduced: the effect of pricing on daytime customers versus evening/nighttime demand; impacts on downtown residents and legacy landlords who lack assigned parking; how permit purchasers are distributed and whether permits primarily serve employees or residents; the location and number of pay stations (cost per kiosk was cited as a material capital expense); and whether paid parking should be evening-only to address weekend/nighttime congestion while preserving free daytime access. Marcy Breyer said the plan reflected input to concentrate paid parking in the core and preserve surrounding free parking to encourage employees to park farther from the core.

Public comment: Brent Johnson, a downtown property owner at 621 Clay Street, urged caution and asked the city to wait to see how additional supply (the roughly 60 U.S. Bank spaces) and higher penalties change behavior before implementing broad paid parking. Johnson said: "I would like to, maybe add some caution on adding paid parking until we see, how the behavior of the increased penalties, you know, changes our... what our people are doing downtown." He suggested options such as discounted nighttime permits for legacy downtown tenants or lease arrangements to avoid disadvantaging renters in older buildings without private stalls.

On public safety and enforcement, Director Burdi said the downtown core is heavily patrolled late into the evening and that the city can provide escorts or respond to safety concerns when requested: "The downtown area... is very heavily patrolled," he told the committee.

Votes at a glance - Motion to direct staff to increase citywide parking citations from $10 to $25 (effective Jan. 1, 2026) and to raise monthly permits from $35 to $50 on Jan. 1, 2026 and to $70 on Jan. 1, 2027; motion carried by voice vote. Mover: Councilor Hannah Chrisman; second: councilor (not specified on the record). No recorded roll-call tally provided in the transcript.

What’s next Staff will draft ordinance and fee-schedule language for council consideration, issue a request for proposals for pay-station/mobile payment vendors if council later approves a paid system, continue monthly occupancy counts and present semiannual occupancy reports, and re-engage the Community Main Street parking committee for stakeholder input. No paid-parking ordinance or implementation contract was approved at this meeting.