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San Diego council votes to double parking meter rates, waives revenue-sharing for FY25
Summary
The San Diego City Council voted 8–1 Jan. 27 to double citywide parking meter rates (generally from $1.25 to $2.50 per hour) and to waive the usual revenue-sharing rule for the incremental FY25 revenue so the general fund can use it this year. Councilmember Moreno was the lone no vote.
The San Diego City Council voted 8–1 on Jan. 27 to increase hourly parking meter rates citywide and to waive Council Policy 100-18 so that the additional revenue generated for the remainder of fiscal year 2025 can flow to the city’s general fund. Councilmember Foster moved the motion; Councilmember Elo Rivera seconded it.
The measure implements an interim action recommended by the city’s Independent Budget Analyst (IBA). IBA staff and Charles Modica’s office presented an analysis saying the vast majority of the city’s approximately 5,300 metered parking spaces charge $1.25 per hour and that the municipal code allows rates up to $2.50 per hour. IBA analyst Baku Patel said the change could be implemented within 24 hours after mayoral approval and estimated approximately $4 million in additional revenue for the remainder of FY25 and about $9.6 million annually beginning in FY26.
The IBA presentation also explained how parking-meter revenue is allocated under council policy 100-18: baseline services are covered first, then net revenues are shared 45% to community parking districts and 55% to the city. The motion approved Jan. 27 waives that sharing requirement only for the incremental revenue produced by this rate increase for FY25, making 100% of the increase available to the city share for that period. The council also requested the mayor bring a broader package of parking reforms for later consideration.
Supporters at public comment — including labor unions, downtown and neighborhood business improvement district leaders, and representatives of tourism and hospitality groups — told the council the increase is necessary to help close a structural budget gap and protect public services. Nate Fairman of IBEW Local 465 said the additional revenue was needed to maintain services and city workers. Several parking-district managers and business associations urged preserving existing community-parking-district funding levels even as the incremental revenue is redirected for FY25.
Opponents and some council members raised concerns about the equity of a citywide, immediate doubling of fees and the potential hardship for workers and low-income residents who rely on street parking. Councilmember Moreno said she could not support the motion because doubling rates will affect constituents who may be unable to pay more for parking. Questions from the dais also probed what counts as “eligible expenses” for parking district monies and how any future policy changes would be implemented.
The motion adopted directs staff to adopt a resolution raising hourly meter rates citywide to the maximum proposed (doubling the prevailing $1.25 majority to $2.50 per hour), to waive the incremental-sharing requirement under council policy 100-18 for FY25, and to ask the mayor to return with a comprehensive package of parking reforms later in the fiscal year. The council recorded the motion’s passage 8–1 with Councilmember Moreno voting no.
Implementation is expected quickly if the mayor approves the council-adopted resolution; the IBA noted no California Coastal Commission approvals would be required for the rate adjustment. The mayor’s office and relevant departments are to follow up with the council on the wider parking-reform package and the long-term allocation of parking revenues.
