[ad_1]
Royal Oak’s automated parking fund will be used in part to pay for deposits on two downtown parking decks built several years ago, one on 11 Mile Road and another at Second and Center streets. I am. (Tribune file photo)
After being informed by the state that the city of Royal Oak must address a $660,000 deficit in its motor vehicle parking system fund this fiscal year, city commissioners this week approved a plan to bring the fund into surplus.
City Finance Director Debra Peck Lichtenberg presented commissioners with a plan to eliminate the deficit.
“This is a fund that has been significantly impacted by COVID-19,” Lichtenberg said.
Discussion of the issue also led City Commissioner Brandon Colo to address the ongoing issues the city has with the parking meter vendor, Municipal Parking System (MPS), which owns and operates parking meters and issues tickets. Mentioned. Ticket revenue will be split 50-50 with the city.
MPS’s meter operations have angered many downtown visitors and business owners. News stories about meter complaints highlighted tensions between the city and parking vendors.
Money from the parking fund, overseen by the DDA, will be used to pay off bonds the city used several years ago to build two new parking decks. One deck is located on 11 Mile Road near the city library and the other at Second and Center streets.
Lichtenberg said in a letter to the Michigan Department of Treasury that the bonds were issued in 2016 and 2018.
Lichtenberg said the city and the Downtown Development Authority are splitting the repayments on the bonds, which have nine years and 11 years remaining.
Other financial pressures on the auto parking fund came after the city contracted with MPS in 2020 to install and operate parking meters on streets and surface parking lots downtown.
“Through the extended installation period and implementation period that far exceeded our initial expectations, revenues (from the meters) were significantly below historical standards,” Lichtenberg wrote in a letter to the state. .
At Monday’s committee meeting, he also announced moves to extend parking meter grace periods from five to 15 minutes and extend maximum parking time from two to three hours in early 2023, as well as metered parking that would be put into a parking fund. It was pointed out that this would affect the income of
Disruptions from the COVID-19 pandemic and other factors “make for really difficult timing for the auto parking fund,” Lichtenberg told city commissioners Monday.
Her recommendations approved by commissioners include $2.5 million from the city’s federal coronavirus relief funds, $500,000 from the general fund, a portion of this year’s increased parking ticket revenue, $1.5 million from the DDA, and parking fees. Contains some of the. ticket income.
“We will be working with the DDA to review parking fees, including returning to a flat rate of $5 after 5 p.m. (on both parking decks),” Lichtenberg said. “These (parking fees) have not been adjusted since 2017.”
All told, the amount the city and DDA plan to pay into the auto parking fund is approximately $5 million.
Coro referred to the company in a roundabout way, without mentioning MPS by name, just before the City Commission approved the deficit elimination plan.
Kolo said it’s very unfortunate that the city has to pay $2.5 million into the parking fund, adding that money could have gone toward parks, tennis courts and other facilities.
Kolo said “I can’t say anything more because of the possibility of litigation” between the city and MPS. “Our (city) attorney will handle this matter privately and will discuss at length the possibility of recovering some of these funds and potentially holding future payments in escrow based on what is happening.” I hope we can have a discussion, because it’s just ridiculous that we’re doing something like this.” We’re running out of parking. ”
Kolo said Friday that Royal Oak has been in intense negotiations with MPS for months, seeking a more than 50 percent share of parking revenue from parking vendors.
“We are aware that other municipalities were able to renegotiate the terms of the contract,” he said.
Kolo characterized the City Commission’s action this week to eliminate the Auto Parking Fund deficit as an accounting.
“That in no way indicates that we are in a worse position,” he said.
[ad_2]
Source link
