PISMO BEACH CITY COUNCIL STAFF REPORT
Agenda Item #9.E
Meeting Date: July 16, 2024
TITLE:
Paid Parking Quarterly Update—Fourth Quarter of Fiscal Year 2024 RECOMMENDATION:
No action recommended, for information only.
DISCUSSION:
This report provides the City Council and public with information on preliminary actual revenues and expenditures for Fiscal Year (FY) 2024 for the quarter ending June 30, 2024, and the current balance of the Parking Enterprise Fund. This report also provides an update on parking initiatives.
FY 2024 Financial Update
Table 1 details the preliminary actual revenues and expenditures for the fourth quarter of FY 2024 compared to the fourth quarter of FY 2023.
Table 1: Parking Enterprise Fund Revenues & Expenditures through 4th Quarter
FY 2024 4th
Quarter Actuals
FY 2023 4th
Quarter Actuals
Variance FY24
v FY23 ($)
V ariance FY24 v
FY23 (%)
July 1st Beginning Fund Balance 5,846,885$ 5,409,268$ 437,617$ 8.1%
REVENUES
Parklet Fee -$ 44,298$ (44,298)$ -100.0%
Parking Citations 598,536 624,165 (25,629) -4.1%
Interest Earnings 183,460 112,785 70,676 62.7%
Rents & Leases -3,396 (3,396) -100.0%
Parking Kiosks/Meters 2,579,868 1,833,914 745,954 40.7% Parking Permits 5,091 6,844 118,239 -104.5%
Miscellaneous Revenue (4,002) (113,148) (2,516,255) -100.2% TOTAL REVENUES 3,362,953$ 2,512,253$ (1,654,710)$ 33.9%
EXPENDITURES
Salaries & Wages 181,728$ 196,184$ (14,455)$ -7.4% Benefits 59,771 54,251 5,520 10.2%
Purchased Professional Services 3,562 3,463 99 2.9% Other Purchased Services 13,126 70,727 (57,602) -81.4% Operations and Maintenance 89,215 30,793 58,422 189.7% Other Expenses 320,120 374,174 (54,054) -14.4%
TOTAL OPERATING EXPENSES 667,521$ 729,592$ (62,070)$ -8.5% NET INCOME / (LOSS) As of June
30, 2023
2,695,432$ 1,782,662$ 912,770$ 51.2%
One-time Expenditures 2,846,670$ 238,551$ 2,608,119$ 1093.3% June 30, 2024 Ending Fund
Balance
5,695,646$ 6,953,378$ (1,257,732)$ -18.1% Carryforward One-time projects 4,003,261$ 3,733,906$ 269,355$ 7.2% June 30, 2024 Available Ending
Fund Balance
1,692,386$ 3,219,472$ (1,527,087)$ -47.4% FY 2024 Available Ending Fund Balance is an estimate until revenues and expenditures are final and audited.
Council Agenda 7-16-2024 9.E-1
As shown in Table 1, the preliminary estimate of revenues of the Parking Enterprise Fund at the end of the fourth quarter of FY 2024 (ending June 30, 2024) totaled $3,362,953 which is 33.9% greater parking revenue compared to the same period in FY 2023. This increase is largely due to increases in parking rates and occupancy and interest earnings.
Operating expenses at the end of this same period, which include personnel costs, operating expenses, and contract services, totaled $667,521, which is 8.5% less than operating expenditures through the fourth quarter of FY 2023. The projected net operating income (revenues less operating expenses) through the fourth quarter of FY 2024 is $2,695,432. After accounting for one-time expenditures of $2,846,670, the projected ending balance of the Parking Enterprise Fund at the end of the fourth quarter is $5,695,646.
In addition to the ongoing expenses, there are one-time budgeted costs of $6,849,931 for one-time projects. These projects include $4,000,000 to support the parking functions and related public safety support of parking functions associated with and located within the Public Safety Facility project; $1,305,496 for the purchase of parking inventory; $1,159,056 for the Police Department Parking Division Substation; $291,884 for additional parking meters; $88,398 for the Addie Street Parking and Access Improvements project; $4,000 for a radio system upgrade and reliability project; and $1,097 for other projects. After considering these one-time costs of $2,846,670 and carrying forward the $4,003,261 remaining project balances to the next fiscal year, the projected available fund balance is $1,692,386.
Parking Initiatives
The paving project in the Price Street area commenced on April 8, 2024, and includes construction of a center median on Price Street between Bay Street and Pomeroy Avenue and installation of parking meters in this same area including the adjacent stub streets.
Installation of parking meters will occur in the first quarter of Fiscal Year 2025. The City Council authorized the purchase of the parking meters on January 17, 2023.
On April 24, 2024, the Parking Advisory Committee (PAC) discussed possible changes to the downtown parking requirements, including options for updating the structure of the parking in-lieu program. The PAC specifically discussed the following parking related initiatives:
1. Reduce in-lieu parking fee to $9,000.00 per space, or tie the parking in-lieu reduction to a limited time period.
2. Planning Commission to make hardship interpretations that maximize flexibility when granting a higher percentage of spaces for use of the in-lieu fee.
3. Reduce parking requirements for commercial uses or mixed-use commercial/residential.
4. Allow in-lieu fee to cover 100% of the parking requirement, meaning a property owner could pay in-lieu fees for 100% of the required parking spaces. Can only buy 30% of required parking spaces under current policy.
5. Establish parking maximums, in addition to parking minimums in the zoning code.
6. Include off-site parking as an option to satisfy requirement.
Council Agenda 7-16-2024 9.E-2
7. Invest in-lieu funds toward a public parking structure, or additional public parking facilities.
8. Allow reduced parking requirements for projects that include senior housing or workforce housing in areas zoned for mixed use on upper floors.
9. Create policy in zoning code that doesn’t trigger parking requirements in the downtown for a change in use.
The PAC provided consensus on items 1, 2, 5 & 9, shown in italics above, and requested some additional information in relation to item 4, which will be going back to the PAC on July 24, 2024. Staff will return to the Council with an item reflecting the direction provided by the PAC after the July 24th meeting.
FISCAL IMPACT:
There is no fiscal impact from staff’s recommendation. Fiscal impacts from parking revenues and expenditures are outlined in the above report.
Prepared by:
Nadia Feeser, Administrative Services Director
Scot Graham, Community Development Director
Jeff Smith, Police Chief
Submitted by: Scot Graham, Community Development Director City Manager Approval:
Council Agenda 7-16-2024 9.E-3