Hot Springs proposes $5/hour flat rate and new employee permits in broad paid-parking overhaul

Deputy City Manager Lance Spicer outlined an omnibus ordinance (O-26-04) that would reshape Hot Springs’ downtown paid-parking program, including a proposed $5-per-hour flat rate in the primary Central Avenue zone and new rules for employee and residential permits. Spicer told the board the flat $5 rate, with a four-hour maximum, would increase projected revenue in that zone from roughly $250,000 in 2025 to about $660,000 under the new pricing.

Spicer said the proposal would also reclassify parts of Fountain Street to a primary zone with a $2-per-hour rate and no time restriction, mirroring areas near Ouachita Avenue. On employee permits, staff proposed a $20-per-month standard permit (equivalent to $240 annually) with a seasonal three-month option priced at $30 per month ($90 total). "Employee permit fee annually would be $240," Spicer said when outlining the fee schedule. He added that the seasonal permit would be allowed once per year for a given license plate.

The ordinance would expand the geographic area eligible for employee permits beyond the current Prospect-to-Park Avenue footprint to include additional paid-parking blocks such as Convention Boulevard, Malvern Avenue and Exchange Street. Staff further proposed capping employer-provided employee permits at 15% of a business’s 2025 allocation and limiting employee parking on higher decks of the Exchange Street garage (Deck 3A and above) to preserve spaces for other users.

Board members raised concerns about turnover in the hospitality industry and how a prepayment model could affect seasonal and short-term employees. Director Holliday, Director Webb and others pressed staff to clarify whether employers or employees would carry the cost and how employers would administratively manage annual permits and transfers between license plates. Director Holliday said the commitment requirement was a major worry for service-industry workers; Spicer confirmed employers or employees could purchase permits and that employers can transfer permits to different license plates when staffing changes.

Spicer told the board the implementation deadline pushed by staff is Feb. 28 to allow time for programming by IPS and employer portal setup. "You need about 10 days from when we get an approval to get that information to IPS, get it programmed so they're able to test it," he said. The board agreed additional clarifications and ordinance language would be brought back before a final vote on the timeline staff noted.