Leesburg council backs staff review of garage rates and payment tech; agrees to pursue higher hourly rate

Leesburg town council on July 7 asked staff to develop a detailed proposal to update the town-hall parking garage—s rates and payment systems after a wide-ranging review of usage, revenue and maintenance needs.

Keith (town staff) reviewed garage operations and finances and said the facility, opened in 1990, contains roughly 358 spaces and currently returns about $140,000 in annual revenue: roughly $80,000 from permits and $60,000 from hourly users. "You—re only collecting $140,000 in revenue," Keith said, and staff noted the figure does not include large capital investments needed for ongoing repairs such as concrete work and membrane recoating.

Why it matters: councilmembers said the garage supports downtown businesses and staff, but several also said the current pay structure (first two hours free; $1 an hour thereafter, $10 daily maximum) is likely due for adjustment given maintenance costs and regional parking rates.

Options and council direction

Staff presented several options: (1) keep the current operation; (2) keep the gates but raise rates; (3) remove gates and enforce time limits using apps such as ParkMobile; and (4) invest in newer payment technology (tap-to-pay kiosks and faster processing). Staff said the existing system is about eight years old and lacks modern tap-to-pay convenience.

Councilmember Steinberg said he opposed making the garage free and warned that free parking would likely increase employee use and enforcement costs. "I would not personally be in favor of free parking," Steinberg said. Several members said they wanted to preserve a two-hour free window that supports downtown lunch and quick shopping trips.

On balance the council asked staff to combine two staff options: keep the gate-based system but raise the hourly rate and concurrently explore replacement payment technology with faster processing and tap-to-pay capability. The council asked staff to prepare cost estimates that include capital needs for equipment replacement and to return with specific implementation timing and revenue projections.

Details staff provided

- Capacity and usage: The garage has about 358 spaces and has lost a few due to repurposing over the years; Fridays and weekend evenings are peak demand times.

- Revenue and costs: Annual revenue is roughly $140,000 (about $80,000 from permit parking, $60,000 from hourly users). Direct operational costs (gates, supplies, paper) run about $60,000 annually; capital costs for concrete repairs and roof membrane recoating are additional and not included in the $60,000 figure.

- Current pricing: First two hours free; $1 per hour thereafter; $10 daily cap; permits: $40--$45 unreserved monthly, $65 reserved in the basement (pricing appears highly competitive relative to private lots).

- Implementation considerations: Staff warned that converting entirely to an app-based model would eliminate the ability to keep a two-hour complimentary window because processing fees apply immediately on the first minute of parking when using third-party mobile providers.

Next steps

Council asked staff to return with a proposal combining option 2 (keep current operation and raise rates) and option 5 (retain gates, upgrade payment kiosks and options), including:

- Capital cost estimates for new kiosks and payment infrastructure; - A proposed schedule for a phased rate increase (discussion included the idea of stepping from $1 to $2 and then gradually upward if needed); - Impacts on on-street pricing and permit structure; and - Estimates of enforcement capacity and anticipated revenue changes.

Ending

Staff said it will collect additional usage data and work up the numbers for council to consider at a subsequent meeting. Councilmembers emphasized keeping the two-hour free window to support downtown visits while ensuring the garage—s revenue covers increasing maintenance needs.