TO: Mayor and City Council
THROUGH: Krishna Namburi, Interim City Manager
FROM: Kristin Retherford, Director, Community Planning and Development
SUBJECT:
title
Adopting the Fiscal Year 2026 (FY2026) Parking District budget and setting the Parking Tax rate for the Downtown Parking District.
Ward(s): Ward 1 and 2
Councilor(s): Tigan and Nishioka
Neighborhood(s): CANDO
Result Area(s): Strong and Diverse Economy, Welcoming and Livable Community
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SUMMARY:
summary
The FY2026 proposed total operating budget for the Downtown Parking Fund is $1,970,560. The budget incorporates the business parking tax rates of $169.00 per space or $469.00 minimum tax, a 0% increase from current rates. New parking pay stations will be installed for on-street paid parking in the Downtown Parking District, activated for 12 hours per day, Monday through Saturday, starting July 10, 2025. Revenue from metered parking in the Downtown Parking District will be assessed at the end of FY 2026 to determine when the tax, per Salem Revised Code 7.110, can sunset.
Salem Revised Code 7.110 requires Council to adopt, by resolution, a budget for the Downtown Parking District (District) and set the tax for each fiscal year. The Parking District was established in 1976 to provide funding for economic promotion and public parking within the downtown core.
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ISSUE:
Shall City Council adopt Resolution No. 2025-13, adopting the FY2026 Downtown Parking budget and setting the business-paid parking tax for the Downtown Parking District?
RECOMMENDATION:
recommendation
Adopt Resolution No. 2025-13 (Attachment 1) adopting the FY2026 Downtown Parking budget and setting the business-paid parking tax for the Downtown Parking District.
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FACTS AND FINDINGS:
For FY2026, annual parking tax rates proposed:
Current Minimum Tax: $469.00
Proposed Minimum Tax: $469.00
Current Single Space Rate: $169.00
Proposed Single Space Rate: $169.00
Based on the parking demand formula for occupied buildings, the current parking demand is 2,881 spaces. There are 3,413 spaces in the Downtown Parking Tax District.
The proposed operating budget is shown in Exhibit A of Resolution No. 2025-13 (Attachment 2).
BACKGROUND:
In October 2013, Council adopted Initiative Petition 001-2013-IP, which capped annual increases to the downtown parking tax rate at the lesser of 2% or the general Consumer Price Index (CPI) for Portland. This index is no longer published. The CPI for All Urban Consumers is 2.8%.
William O’Donnell
CPD Financial Services Manager
Attachments:
1. Resolution No. 2025-13
2. Proposed FY2026 Parking Fund Budget