Why is this measure important?
Parking Management Cost-Efficiency is crucial to assess the fiscal
viability of the Public Parking Program. This measure tracks the
operating performance of the program and provides insight into public
parking supply, demand and pricing.
Factors contributing to current performance
The increasing cost ratio is a result of loss in revenue due to the
Ad-Valorem Tax rate being set to zero in FY16. This change is projected
to continue into future years. It should also be noted that the decrease
in parking fees in FY18 was the result of a one-time payment of $1.6M
we received in FY17.
Factors restricting performance improvement
- The largest factor in the generation of revenue is office space leasing rates in the Parking Lot Districts (PLDs). Higher leasing rates directly correlate to higher parking utilization. Given fixed parking rates, higher utilization results in higher revenue.
- Improvements in convenient parking payment options such as pay-by-cell and use of credit cards at all parking meters has improved parking payment compliance. This trend has negatively impacted fine revenues generated with no reduction in operating expenditures for enforcement activities.