TO: Mayor and City Council
THROUGH: Krishna Namburi, City Manager
FROM: Kristin Retherford, Director, Community Planning & Development
SUBJECT:
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First Reading of Ordinance Bill No. 1-26 to amend SRC Chapters 7 and 102 to repeal the Downtown Parking District Tax.
Ward(s): Ward 1, 2
Councilor(s): Tigan, Nishioka
Neighborhood(s): CANDO, SCAN
Result Area(s): Safe, Reliable and Efficient Infrastructure; Strong and Diverse Economy.
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SUMMARY:
summary
On July 10, 2025, the City launched a paid on-street parking system within the Downtown Parking District. Revenue projections for downtown parking have shown promising results. The total revenue for the first six months reached $1,194,063.69. Revenues from paid on-street parking in the Downtown Parking District are sufficient to warrant repeal of the Downtown Parking Tax.
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ISSUE:
Shall City Council Advance Ordinance Bill No. 1-26 to amend SRC chapters 7 and 102 to repeal the Downtown Parking District Tax to second reading?
RECOMMENDATION:
recommendation
Advance Ordinance Bill No. 1-26 to amend SRC chapters 7 and 102 to repeal the Downtown Parking District Tax to second reading.
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FACTS AND FINDINGS:
Initial Projections and Operating Considerations
Revenue projections for downtown parking show promising results. For the fiscal year 2025-2026, the projected revenue was conservatively set at $1,400,000. Revenue projections for downtown parking were intended to cover the operating costs of the parking district, including maintenance, enforcement, and infrastructure upgrades. Because this is a new program, staff have not included all expenses, and some costs are currently being supported by a draw from the General Fund to cover base costs prior to completion of a deferred maintenance analysis. Safety and Security have been number one priority, and currently the City provides 24-hour monitoring of three parkades at a cost of $410,000 for FY26.
Six-Month Revenue and Utilization Summary
The first quarterly revenue has exceeded expectations. In the first quarter (July to September 2025), revenues totaled $160,741.72 in July, $214,863.15 in August, and $203,766.41 in September. The second quarter (October to December 2025) continued this trend, with revenues of $226,164.54 in October, $179,303.21 in November, and $209,244.66 in December. The total revenue for the first six months reached $1,194,063.69.
Revenue has held steady over the first six months of operation and the average vehicle parking time has been ninety minutes. Parking utilization studies focus on the amount of time a vehicle is parked and how many spaces are utilized in a given time period. Ninety minutes is positive from a utilization perspective as it indicates turnover, i.e., multiple new users rather than long-term users. This means people are coming downtown to dine, shop, or run errands, rather than spaces being occupied by employees or residents, which was a significant issue prior to the conversion to the paid system.
Impact on Parking Garages
Parking permit revenues in the Marion, Chemeketa and Liberty parking garages have also increased since converting to a paid on-street system:
July $36,959
August $44,283
September $47,598
October $49,355
November $51,752
December $55,022
This indicates paid parking is encouraging people to purchase permits, freeing up on-street spaces for customers.
Recommendation to Terminate Downtown Parking Tax
Consequently, staff recommends terminating the Downtown parking tax by ordinance with refunds for the tax retroactive to July 1, 2025, with refunds to be complete by June 30, 2026.
BACKGROUND:
At the February 27, 2023, City Council Meeting, City Council directed staff to return to City Council with a plan to implement paid on-street parking in the downtown parking district and phase out the parking district tax. This plan resulted in the implementation of a new paid system downtown, effective July 2025.
Dana DeKlyen
Assistant Director of Urban Development
Attachments:
1. Ordinance Bill No. 1-26
2. Ordinance Bill No. 1-26 Exhibit A