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HomeMy WebLinkAboutItem 19 - Work Study Session for Parking Enterprise Fund Community Development Agency www.santa-ana.org/community-development Item # 19 City of Santa Ana 20 Civic Center Plaza, Santa Ana, CA 92701 Staff Report February 18, 2025 TOPIC: Work Study Session for Parking Enterprise Fund 27 AGENDA TITLE Work Study Session for Parking Enterprise Fund 27 RECOMMENDED ACTION Discuss and provide direction to staff for budget, rates, and hours of operation that relate to the Parking Enterprise Fund 27. GOVERNMENT CODE §84308 APPLIES: No DISCUSSION Since July 2020, the Community Development Agency (CDA) has overseen the administration of the Parking Enterprise Fund 27 (”Fund”), encompassing three key accounts: meters, parking structures, and downtown enhancement. During the June 4, 2024, City Council meeting, Finance staff presented an overview of the Fund as part of the budget process. The City Council requested detailed budget information to evaluate revenues and expenditures, enabling them to provide recommendations for the Fund's sustainability and alignment with community goals. The presentation will deliver the following critical insights: •Background and operational details related to parking meters and structures, •Budget data for meters, parking structures, and downtown enhancement, •Considerations for Council regarding subsidized parking initiatives, and •Key points for review regarding meter ordinance adjustments. Parking meters and structures, operational since the late 1980s, were established to generate funds for reinvestment into operational costs, service enhancements, and maintenance projects supporting Downtown Santa Ana's vibrancy. The Parking Enterprise Fund pays for: •4 FTE City staff for parking operations •Operational and maintenance costs for the parking structures and parking meters Work Study Session for Parking Enterprise Fund 27 February 18, 2025 Page 2 4 8 4 4 •The Clean and Safe Program ($705,290) •Holiday decorations in downtown ($60,000) Historically, parking rates in Downtown Santa Ana have been set at accessible levels to promote parking availability and circulation for visitors. Current rates are $1.00 to $2.00 per hour for street parking in prime areas such as Downtown and Civic Center, while parking structures charge $1.50 per hour. These rates have remained unchanged since 2019. In 2019, to support the community and local economy, the City Council approved a two- hour grace period to promote visitors to the area and a boost to the downtown business district. In 2020, in response to the pandemic and construction challenges, additional measures were introduced, including free parking at structures on weekdays from 7:00 a.m. to 5:00 p.m. and two-hour free parking during evenings and weekends. These measures resulted in significant revenue decline. The City Council has approved subsidies for the Fund to maintain essential operations for the past several years. FY21 FY22 FY23 FY24 General Fund Subsidy $400,000 $789,000 $2,873,040 $1,862,320 The primary goal of this session is to seek direction from the City Council on proposed budget strategies for the Fund. These strategies aim to balance community needs with the necessity of covering operational costs, ensuring the continued functionality and sustainability of the Fund. FISCAL IMPACT There is no fiscal impact at this time. Submitted By: Michael L. Garcia, Executive Director of Community Development Approved By: Alvaro Nuñez, City Manager