Downtown businesses, churches and residents who opposed city council’s plans to increase areas and hours of parking meters are celebrating victory.
The budget, passed on March 27, did not approve extending paid-parking times to evenings after 5:30 p.m. and Sundays.
“I’m glad they rethought the parking plans,” said Rev. Lindsay Harrison of Saint Patrick’s Basilica. “The city showed signs of goodwill and being responsive to the community.”
Harrison said parking is the lifeblood of downtown churches and parking meter charges would diminish the number of people involved in church services and activities which occur largely during evenings and weekends.
Businesses also worried that people would be scared out of the downtown core and expressed relief with the result.
“I am delighted that council has listened, like they should, and made this decision,” said Lori Mellor, executive director of the Preston Street Business Improvement Area.
The budget also axed plans to expand on-street paid parking into new areas. This includes suggestions by downtown business representatives who favour new parking meters on Rideau, Booth, Rochester, Norman and Daniel McCann streets, Centrepointe Drive and Constellation Crescent. Mellor said that the installation of new meters within her area streets of Booth, Rochester, and Daniel McCann would be manageable and encourage turnover that will support businesses.
Somerset Ward Coun. Diane Holmes similarly said parking revenue should not be used as a crutch to balance the budget at the expense of downtown.
“Parking is not there as a cash cow, it is there to provide turnover to support businesses,” said Holmes.
The original parking proposals, passed in December, were expected to create $4.2 million in revenue, according to city treasurer Marian Simulik. Instead, council has only raised rates by $0.50 per hour, which is expected to create $595,000.
In order to cover the shortfall in parking revenue, unexpectedly large snow removal costs and the higher-than-expected cost of diesel, Simulik said that a 7.7-per- cent property tax hike would be needed. This would have translated to an average increase of $195 per household in property taxes.
The budget limited the property tax hike to 4.9 per cent by using money the province had allocated for infrastructure, funds expected in 2009 from the sale of Telecom Ottawa and the possible use of reserve funds as needed.
While the city has found ways of addressing the parking revenue shortfall of $3.6 million in 2008, it will face a larger challenge starting in 2009 when parking revenues will be $6.7 million short of the expectations created in December. A report on parking revenue alternatives, such as implementing “Pay & Display” technology and expanding into other areas, will be considered by the transportation committee on April 16.
Holmes said she is not surprised the city is in a difficult situation.
“It’s come home to roost,” said Holmes. “We have tried very hard to keep the taxes down to zero. Unlike every other city in Ontario that has done an inflationary increase, we have not, and then eventually you can’t do it anymore. We have taken money out of reserves in order to keep the taxes down, but in the long run that is not a good idea.”