Govt Reaction: Economics 101 Antithesis, Decreasing Demand: Raise Price!

City of Carmel-by-the-Sea
Paid Parking Revenues: Sunset Center North Lot & Tour Bus Parking Kiosks
July 2005-April 2006

FY 2005-06
Quarter---Sunset Center North Lot---Tour Bus Parking-----TOTALS

3rd---------$16,485.50-------------------$1,774.00---------$18,259.50

4th---------$33,921.61-------------------$7,978.75---------$41,900.36

TOTALS---$50,407.11-------------------$9,752.75---------$60,159.86

City’s 65%-$39,104.91; National Parking 35%-$21,055.95

FY 2006-07
Quarter---Sunset Center North Lot---Tour Bus Parking------TOTALS

1st----------$58,302.80-------------------$8,662.25----------$66,965.05

2nd---------$35,926.95-------------------$5,162.00----------$41,088.95

3rd---------$22,484.44-------------------$2,453.00-----------$24,937.44

4th ----------$7,534.00----------------------$210.00------------$7,744.00
(through April)

TOTALS---$124,248.19------------------$16,487.25-----------$140,735.44

City’s 65%-$91,478.04; National Parking 35%-$49,257.40

COMMENTS:

• Since the 1st Quarter of Fiscal year 2006-07, the total collected by National Parking & Valet has declined with each subsequent quarter, particularly bus parking revenues.

• The City’s response to fewer paid parking vehicles and buses (decreasing demand) is to raise the hourly rate at the Sunset Center North Lot from $2.00/hour to $3.00/hour.

• The City’s 65% portion of the total collected by National Parking & Valet will be approximately $100,000 for Fiscal Year 2006-07.

• A trend line of declining revenue means fewer business and restaurant patrons and less sales tax revenue for the city.

• Is the $100,000 per year generated from paid parking worth a probable greater amount loss in sales tax revenues?