Belleville downtown parking study recommends changes to increase revenues and balance the parking services budget

Prior to COVID-19, revenues from parking would typically exceed costs with the balance transferred to the parking reserve fund for future use. Since 2020, revenues have been lower and funds have been drawn from the reserve to cover operating expenses – services were run at a loss.

In 2023, Belleville allocated $50,000 in the 2023 Operating Budget (D6-1) for a parking study to determine how the parking services budget could be balanced and not required to be subsidized by property taxes. Paradigm Transportation Solutions Limited was selected as the consultant to complete the Comprehensive Parking Study with an expected completion date of July 2024.

The parking rate study will determine the appropriate annual revenue level to maintain full cost recovery and ensure the operation is not required to be subsidized by taxation. In 2023 Parking services will have an operating deficit and require funding from the parking reserve fund to support operations. Operating parking services in a deficit position is not optimal. The annual operations for parking should result in a contribution to reserve allowing for a balance that supports long term capital requirements and provide for stabilization for one-time or unexpected expenditures. The objective of the rate study will be to ensure an optimal parking rate strategy that ensures sufficient funding to support operations and capital requirements.

The last time Council approved rate increases:

• Permits – 2020
• Set Fines – 2017
• Hourly Parking Rate – 2011

This expected completion date was pushed back 7 times “due to unforeseen delays, including the availability of accurate seasonal data and the need for extended consultation” in the City’s Operating Issues Report from July 2024 to Q4 2025, more than 1 year later:

• Fall 2024 in August 2024
• February 2025 in October 2024
• March 2025 in December 2024
• April 2025 in April 2025
• June 2025 in June 2025
• Q3 2025 in July 2025
• Q4 2025 in October 2025

Report recommendations

The consultant recommended the following changes be implemented in 3 phases from 2026 to 2028+:

Phase 1: 2026

Phase One is recommended for implementation in 2026 and includes selected operating activities, with a projected net revenue impact of $9,801, primarily resulting from proposed changes to the service’s pricing structure. Additionally, this phase will initiate increased contributions to the Parking Reserve Fund to help support the ongoing investments outlined in the City’s 2025 Asset Management Plan.

• Increase hourly parking rates from $1.00 to $1.50 per hour
• Increasing the set fine rates for parking infractions
• Increasing the monthly fee for daytime permit parking to $75.00
• Implementing enhanced daytime enforcement through the addition of 1 added enforcement officer shift.
• Making additional monthly permits available for sale
• Implement the overnight parking permit program

Implementation of the Phase 1 recommendations are expected to increase total annual revenues by about $305,500 with additional costs of $53,000 primarily due to the recommendation for additional enforcement resources. This would enable the City to contribute approximately $107,700 to the Parking Reserve Fund.

Phase 2: 2027

• Implementation of paid parking on Front Street
• Increase the maximum time limit for parking on Front Street to 2 hours
• Implementation of paid parking on Great St James Street
• Implement 1 hour free parking in the Riverside and Front Street lots
• Invest in Parking Enforcement software20 that can integrate with the HotSpot Parking App to improve enforcement efficiency

Phase 2 would implement the paid parking on Front Street and on Great St James Street, along with the 1 hour free parking in the Front
Street parking lots. This would increase revenues by approximately $397,000, which includes an additional $76,000 in net new meter
revenue (after accounting for the cost of the 1 hour free parking in the Front Street and Riverside Lots) plus $15,500 in new permit revenue.
A one time draw from the reserve to help fund the capital cost of new pay and display machines on Front Street and Great St. James Street
is shown as both a revenue and capital expense.

Anticipated costs will increase by $376,550 primarily due to the onetime capital cost of the new pay and display machines, plus an additional $70,000 in operating costs for new enforcement software and inflationary cost increases. The Phase 2 program of changes should allow for a $207,350 contribution to the Parking Reserve Fund.

Phase 3: 2028+

• Procure a new parking management system for the Riverside and Front Street lots including gate arms, entry and exit stations, and real time signage.
• Implement evening flat rate parking in the Riverside and Front Street parking lots.
• Replacement of remaining parking meters with new pay and display or pay by plate machines.

In Phase 3 overall revenues are expected to increase by $569,100 which includes $81,300 in revenue from the evening flat rate permit
parking program in the Riverside and Front Street lots, a full year of the paid parking on Front Street and Great St. James Street, plus
additional increases to monthly permit fees. In addition, another one time draw from the parking reserve would be required to contribute to
the purchase of the parking control system for the Riverside and Front Street lots and for replacement of the remaining parking meters.

The public parking supply encompasses 1,289 spaces, comprising 345 on-street spaces and 944 off-street spaces divided among 15 parking
lots. Four of these lots provide just over 50% of the municipal off-street parking supply (Clark Lot, Courthouse Lot East, Front Street Lot, and the Riverside South Lot).

Revenues and expenses

The city charges $1.00 per hour in both on-street and off-street parking areas on weekdays between 9:00 AM and 5:00 PM. Parking is free
after 5:00 PM (on weekdays), and at all times on weekends. Parking is purchased through on street parking meters that accept coins and pay and display machines which accept payment by coins and credit cards. The city also accepts payment through the HotSpot Parking App.

Revenues from the operation of the parking system in downtown Belleville are intended to cover operating and capital costs for parking
services. The costs to provide this service include:

• City staff
• Enforcement staffing
• Utility costs
• Vehicle costs
• New equipment
• Equipment maintenance costs
• Parking lot maintenance
• Insurance
• Property taxes
• Legal expenses
• Other general expenses

Revenues from the operation of the parking system in downtown Belleville are intended to cover operating and capital costs for parking services. The costs to provide this service include City staff, enforcement staffing, utility costs, vehicle costs, new equipment and equipment maintenance costs, parking lot maintenance, insurance, property taxes, legal expenses and other general expenses required to run the parking business.

Proactive overnight parking enforcement program increased infractions issued by 25%, brought in more revenue

The financial performance of the parking system improved in 2023 and 2024 due to higher revenues from fines, metered parking and permit sales. In 2023 the City implemented a proactive overnight parking enforcement program which resulted in a 25% increase in the number of infractions issued. At the same time, operating costs were lower which allowed the City to provide a modest contribution to the Parking Reserve Fund at year end.

Belleville will have to increase revenues or increase property taxes to support costs of downtown parking infrastructure

The financial outlook shows a negative net revenue forecast by 2025 with this deficit continuing on into the future. Without increases in
revenues the City will have to continue to draw from the reserve fund or rely on property taxes to support ongoing operational costs and to
maintain the downtown parking infrastructure.

Parking rate comparison

Parking fine comparison