Finance committee reviews parking fund: revenues up, Ocean Gateway loss noted

The City Council Finance Committee on May 8 reviewed the parking department's proposed fiscal-year budget and heard officials say revenues are modestly higher while some costs and one large revenue loss are driving changes.

John (last name not specified), the parking division director, and former director Pevarada presented the budget. “Budget doesn't have any real excitement to it this year. No highs, no lows,” Pevarada said, noting total parking expenditures are nearly flat and that “total expenditures are only up 0.35%.”

Committee members were told department revenues are up about 1.42% year over year but that the Ocean Gateway lot will produce about $362,000 less revenue than in FY25 because that lot is being converted to a park. Pevarada and John also described specific line-item changes: the Chester Street garage lease is being renegotiated and is expected to rise about 12% when it renews; Spring Street garage electric costs are higher because that garage currently pays for two meters while the city separates EV charging costs; and two garages (Elm Street and Spring Street) are proposed to increase monthly parking from $160 to $170.

Committee Chair April Fournier and Councilor Sykes pressed staff on how parking surplus is treated. Bridal (city staff) explained parking revenues are not restricted by ordinance and generally flow to the general fund; any earmarking would require an ordinance change. Bridal also noted that earlier figures cited did not include debt service and some employee benefit costs, and recommended factoring those in when calculating a “true surplus.”

On capital needs, the Spring Street Garage has a $54,000 reduction in capital outlay from last year because last year’s stair tower repair was larger; this year will include smaller stair-tower work plus replacement of three stair-tower roofs and concrete fin repairs. John emphasized the department uses conditional appraisals to schedule capital work and that the garages are significant revenue generators that help offset property taxes.

The committee did not take a formal vote on the parking budget at this meeting; staff said they will return materials and any proposed ordinance language during the public hearing and first-read cycle scheduled in the coming weeks.

The committee discussion also reiterated budgeting mechanics: departmental revenues and expenditures are submitted and net to the property tax rate; some revenues (not including parking) are restricted by ordinance. Bridal advised that if council wants parking revenues dedicated to traffic safety or EV infrastructure, that change would require an ordinance.

Looking ahead, staff said bids for the park conversion at the Ocean Gateway site were going out this week and recommended the committee review any proposed ordinance changes if members seek to earmark parking funds.