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Home My WebLink AboutParking Resolution 2020-05 Recommending a Change to Annual Fees for Permits in Residential Parking Permit District (MSU & BHS) Exhibit 3: Bozeman Parking Commission, 7/9/2020 i BOZEMAN PARKING COMMISSION RESOLUTION 2020-05 A RESOLUTION OF THE BOZEMAN PARKING COMMISSION OF THE CITY OF BOZEMAN, MONTANA, RECOMMENDING A CHANGE TO THE ANNUAL FEES FOR NEW AND RENEWING PARKING PERMITS ISSUED IN THE RESIDENTIAL PARKING PERMIT DISTRICTS (MSU & BHS). WHEREAS, the Bozeman City Commission created and empowered the Bozeman Parking Commission pursuant to Resolution Numbers 1676, 1839, 3803, and 4577; and, WHEREAS, Montana Code Annotated 7-14-4621 sets out the general powers of a parking commission; and, WHEREAS, the Bozeman Municipal Code, 36.04.350, requires that residential parking permit fee revenues pay for the cost of administering and enforcing a residential parking permit district; and, NOW THEREFORE, BE IT FURTHER RESOLVED that the Bozeman Parking Commission recommends that the Bozeman City Commission set the fees for residential, employee, and visitor parking permits, within the Residential Parking Permit Districts at $35 annual, and service permits within the Residential Parking Permit Districts at $10 annual. PASSED AND ADOPTED by the Parki Co iss' the City of Bozeman, Montana, at a session held on the 9th day of July 2020. This resolution h effe .ve immediately. Jim Ness, Chair erson Bozeman Par ng Commission ATTEST: Ed Meece, P king Program Manager City of Bozeman BOZ E MAN "'T Parking Services MEMORANDUM Date: June 16, 2020 To: Bozeman Parking Commission From: Ed Meece,Parking Program Manager Re: Residential Parking Permit Districts-2020/21 Rate Review On an annual basis, the Bozeman Parking Commission reviews the parking permit rates for the Montana State University and Bozeman High School Residential Parking Permit Districts (BPC resolution #2017-01). Bozeman Municipal Code requires that the Residential Parking Permit Districts (RPPD) must support the cost of administration and enforcement of the districts entirely from permit fees (36.04.350). For the 2020/2021 RPPD permit period, the Parking Program Manager recommends increasing the RPPD residential parking permits to $45 per year;a$15 increase, Recognizing the RPPD's have historically operated at a fiscal deficit, the Bozeman Parking Commission has attempted to increase rates incrementally, over a period of several years, to a `break-even' point of district revenues and expenditures. However, each time the RPPD permit rate increases, the total number of permit holders declines. This situation results in fewer permit holders bearing the costs for administration/enforcement - and the need for a higher level of permit rate increase the following year. To date, even with annual increases, and using a conservative allocation of costs, the RPPD's have yet to fall below a$30,000 deficit" IF the total number of RPPD permits were to hold constant in 202012021, the actual break-even point is $57 per permit. At the current trend of permit non-renewals, staff projects that the RPPD's are not fiscally sustainable long term. For further details regarding analysis of the RPPD revenues/expenditures, please refer to the attached Permit Fee Review spreadsheet. As part of this rate review process, a public information brochure was mailed to each resident of the MSU and BHS residential parking permit districts as well (attached). • • Bozeman, MT 59771-1230 TDD: 406-582-2301 THE MOST LIVABLE PLACE. 6r12r2020 aottm9n Parkl%Cor ";On M$U and BHS Resld-ial Park4%Parton Mtrkls(combined) PERMIT PEE REVIEW HISTORICAL REVENUES I�ctlE9fj1 Atluai ActualN Mua1S Actua10 Attual fy 19 FY}9 Y IB PM18 FY 17 FY 17 Resdentkl Permit I340 $33,500.00 1368 $34,220.W 1436 $14,365.00 Employee Permks 249 $6,241.00 1% $4,907.00 223 $2,235.00 Vtsitnr Permits 6B9 $17,237.50 892 $22.310.00 1081 $10,M.00 Total 2218 SS6,978.50 2456 $61,437.00 I740 $27,415 se!t al■ Mua16 REVENUES M I 5 0 s 020 1Y 3o FIA PesWeMNl PermfG 1228 $37,455.00 FYIO Budgt 10% 25% Employee Permits 202 $6,072M Parkk g Ckrl S 48,M.76 $1;OW.94 vbrtor Permits 551 $16,555.00 Paral,t Mrgr• $ 46525.56 S 4,65256 Service 101 $1,03000 T-1•• 2082 $61,092M OparAtg $ 199,17100 $ 19,917.10 ToM $ I4569.66 $IZM.94 $ 36 iMM E%PENDMURE$1&sd,,ted&P,"g,dl BWre a50%whyhpaklf..ad.Wrb tkm,otMr50%4paklfmmpnp FY 20 •4 FY 17 to FY 19,a 30%Nductlon In permke wfd AdmlM.V.n $96,650.60 10%orAdmin BWgot(MRim CapnaQ&1/4ofParkfng Ckrk Enformment $78,820.75 2S%of Enformment Budget(Mlnm Capaal) Ty331 $135,47135 Sorp1mlO1(ei1l FY 21 PERMn RATE RECOMMENDATIONS 35M S O-00 W4 AO Res'deMial Pemsns 1228 $42,990.00 $49,120.00 $ 55,26040 Employee Permlta 202 $7,070.00 $8,080.D0 S 9.09040 visitor Permits 551 $19,285M $22,O40A0 $ 24,795M Service l$101 101 $1,010.00 $1,010M $ 1.010m Total Total Prol—d Revenue 2082 $69,335M $79,240.00 $ 90,1551DO Total Uax tuns uludgeted&P—n .] $115,471.35 $M,471.35 $ 111,1093D Port Rote Mlustme"y5urol_jW.,•il 546,136.35 -$35,J3131 •j10,954.3i FY 20 RPPD rate Increase to$30 estimated the resulting deflclt at(-$30,830.00).However,the continuingtrend of reduced number of perrnft holders means that an FY 21 rate Increase to$40 would simply hold the same deficit,not move doserto a self-sustaining district.it has been staffs strategyto reccommend smallannual increases that move toward a break even financial position over an acceptable period of time. For this reason staff reccomends the new residential parking permit rate be Increased to$45 for the 2020.2021 renewal period. Bozeman Municipal Code 36.04.350 requires the residential parking permit fee to pay for the odminlstratlon and enforcement casts of the residential parking permit districts. • City Bozeman Residential Parking Permit District The MSU Residential Parking Permit District (RPPD) in Bozeman was created in 1994 by Ordinance 1377 to reduce parking congestion and better provide adequate parking for residents of the RPPD. In accordance with municipal code 36.04,350, Bozeman City Code staff plans to recommend a $15 price 04_ fees� The amount of be increase to the Parking Commission fora established by total annual permit cost of $45. level that • - of administration and enforcement I he Over the last several years, permit prices have I of residential parking •e regulationsrmitt in the residential increased from $10 to $30 per year. area However, due to a Number of Permits Sold consistent decline in the 3000 number of permit holders z5oo at current prices and number of permits sold, z000 administrative and 1500 enforcement costs are not covered as required by 1000 Bozeman city code. 500 The program has 0 averaged a yearly deficit of FY 17 FY 18 FY 19 FY 20 FY21 FY22 $30,000 since Fiscal Year The solid line is the actual number of permits sold and the dotted line is the 2017. From 2017 to 2019, projected,continued decline of permits sold in the RPPD. the number of permits sold fell by 30 percent. As shown in the graph on the next page the breakeven point for the program is $57 per permit (an increase of $27 from current permit price) if the number of permits sold remains constant. If permit soles continue to fall, the program will never balance despite continued price increases. Mr BQZEMAN Parking Services Tf�e Parking Commission will $20,000 Balancing _ R'PD consider this staff 0 000 recommendation along v��ith resident input to / /00 $35.00 00 $45.00 $5o.00 1 $60.00 $65.00 make their recommendation to $20, /0/ tl�e City Commission. 1 //0 1'ou can make a 1 /1 coni! gent by calling 1 /// 406-582-290� or ernail�i,g the p�,I:ir.g ./ /10 $70, Program 1/1 f��anage!/Parl: r , 0 1/1 Post Rate Adjustment/Surplus (Deficit) —Continued Permit Decline COnlmI�s101, cr e��e`ce.�bc�e'llal-�.rai The next Bozeman Parking Commission meetii g �o discuss _`�ai�- �-eco!i�!��e.,c1� �� t� the City Commission is July 9th meeting at 7:80 AP.�f. lou n�2j' ��re!�d the mee_: ,` :�;a �n�ebex. The vdebex link ��>>ill he on the city ��ehs'Le.