Parking hikes more about necessity than profit, says director

Posted by Laura

Derek McCaughan, the city's director of operations, said there hasn't been a need for a parking permit hike in six years. When monthly passes were increased back in 2002, it was in anticipation of building the Baker Street parking garage. Of course, that never happened. And for several years, parking reserves were healthy. But the the two-hour free parking pilot changed all of that. The city now expects to take a hit of about $700,000. And if the initiative continues beyond the fall, the long-term costs will be much greater.

McCaughan said that in the coming months staff will look at the funding model for parking operations. Increasing rates would be a decision of council.

Another interesting point: McCaughan said Guelph is one of the few municipalities in the province that has parking operations fully funded by user fees. In other jurisdictions, the parking authority is partially funded from the tax base.