To help offset financial troubles in the 2006 fiscal year, East Lansing officials are proposing a $5 monthly hike in parking space rentals at some city garages.
The increase could generate about $69,000.
The city's Parking Administrator Dan O'Connor said the raise is needed to cover parking division employee benefits, such as health care, and building maintenance within the parking division.
"It is time to step it up," he said. "The parking system is an enterprise fund, meaning we have to generate our own revenue. All the money we raise goes to cover all the costs of operating the system."
Typically, it takes about $4.32 million to sustain the city's parking facilities and cover payroll, O'Connor said. As costs such as electricity increase, so will the price of parking, he said.
Other city officials said the hike will help recover lagging funds from depleted parking space use.
"What we have discovered is that we have more and more unused parking spaces," City Manager Ted Staton said. "We have a parking surplus in some parts of the city."
Staton said students moving into apartments on the outskirts of East Lansing have caused a decrease in the number of vehicles traveling into parking structures. Because students are opting to ride the bus, they are not bringing cars into the city.
To further increase funds received from parking, city officials are discussing selling the parking ramp located under the Marriott Hotel, 300 M.A.C. Ave.
"We are just taking a look at that and seeing if it would be profitable," O'Connor said. "We haven't done anything about selling it."
Staton said he would not reveal the name of the organization the city has been discussing selling the ramp with.
The city also has used an increase in parking ticket prices to generate revenue during the past year.
"The council increased some fines, particularly relating to handicapped parking," Staton said. "If anything, we are going to get slightly less than projected."
Last year, the city took in about $200,000 more in parking fines than it had projected. The fines often total about $1.6 million a year, according to the city budget.
East Lansing police Sgt. Patricia Nowak said parking patrols were not increased in the past year. And the increased fines on some tickets could explain the jump in money collected.
The money earned from parking fines can be applied to a number of expenses, such as paying employees or improving road quality, East Lansing Director of Finance Gary Murphy said.
Another possible source of revenue for the city is a deal with the university. The city would temporarily house vehicles driven by about 80 to 100 university employees while a new parking ramp is constructed on campus.
A $60,000 proposal was sent to MSU officials for review, O'Connor said. If they accept, MSU employees will park in the city for 18 to 24 months, or the time it will take to build the ramp.
The ramp, which will cost about $20 million to construct, was a cause for concern by some city officials in February. The location of entrances and exits onto Grand River Avenue could have adversely affected the traffic flow, Staton said.
Following brief negotiations, MSU officials agreed to create an easement onto East Circle Drive, which will allow traffic to straddle both sides of the garage.
Staton said it is unlikely that parking will solely be used to increase the city's revenue.
"It is by no means anything we would use to balance the budget," he said.
Kris Turner can be reached at turne112@msu.edu.
