How can we raise $10 million per year for our streets?
Streets Alive Yarra is calling on the City of Yarra to allocate $10 million per year for capital expenditure on active transport and local area place making. Revenue to support this expenditure is already being collected, from parking permits, meters and fines. If more revenue is required, it is readily available by broader reforms to how parking is priced.
Revenue from streets should be returned to streets
Yarra earns approximately $30 million each year from our streets via parking permits, parking meters and parking fines. We’re asking for this to be returned to streets. The concept of returning revenue as improved infrastructure was developed by Donald Shoup and called Parking Benefit Districts. We estimate that at present only $10-20m is returned, with the rest contributing to general revenue.
Extra revenue is also possible
If council chooses not to increase the budget for walking and cycling, because it would mean cuts to other services, then revenue can be raised from visitors (not residents), by reforming how parking is managed and priced. If this is still not enough (which is unlikely), then the last option is to increase the charge for resident parking permits.
Convert free parking to paid parking
Roughly 34,000 out of Yarra’s 47,000 parking bays (or 72%) are free. Yarra could change the free parking bays to paid parking by designating them as permit zones and then selling digital permits, at a variety of prices and for a variety of durations, e.g. hour, day, week, month or year. Here are some examples.
Annual C1 permits
C1 permits already exist, and allow the holder to park in any permit zone in Yarra for a year. If Yarra sold 1,000 permits for $6k each, we could raise $6m per year.
Annual neighbourhood permits
Neighbourhood permits would be a new type of permit, allowing the holder to park in any permit zone in a single neighbourhood, or Local Area Place Making (LAPM) precinct, for a year. If Yarra sold (on average) 200 permits in each of our 21 LAPM areas for $3k each, we could raise $12m per year.
Note that the City of Moreland already do something very similar, via their ‘Moreland User Pays permit‘, costing $100 for the first month and $300 for subsequent months, or $3,400 per year.
Monthly, weekly or daily permits
Digital permits (linked to a vehicles number plate) could be sold in monthly, weekly or daily forms. Prices could vary throughout Yarra depending upon local supply and demand. Some areas could be $10/day while others could bd $20/day. We have 34,000 bays which are possible to convert to permit zone. Here are some examples:
- 4,000 bays at an average of $10/day for 250 days/year would raise $10m per year
- 10,000 bays at an average of $10/day for 250 days/year would raise $25m per year
- 20,000 bays at an average of $10/day for 250 days/year would raise $50m per year
Recover revenue from the state government parking levy
The Victorian state government imposes a parking levy in the inner city, and shares the revenue with the City of Melbourne, but not the City of Yarra. The levy applies to off-street parking bays (residential bays are exempt). The northern half of Yarra is within the blue levy area, and car park owners have to pay $1,050 per year. If the state government extended the blue car parking levy area to include the southern half of Yarra, covering a total of 20,000 off-street parking bays, and returned 50% of revenue to council, then Yarra would have $10 million per year. Update – Streets Alive Yarra wrote to the Treasurer to propose this reform, unfortunately the Treasurer responded by saying he did not support such reforms at this time.
Increase the charge for parking permits
Yarra sells approximately 30,000 parking permits each year, of various types. The price for a first permit is 11 cents per day ($41 per year). If the price was increased to $1 per day ($365 per year) then Yarra would raise an extra $10 million per year. This price would be comparable to the City of Vancouver, which charges $401.13 Canadian dollars per year, equivalent to $422 Australian, for residential on-street parking permits in the high demand West End area.
Revenue from streets should be returned to streets. We raise $30 million each year from our streets, and we’re asking for this to be returned to streets, for both maintenance and capital works, to support walking, rolling on a wheelchairs, cycling, public transport stops, driving, parking, trees, seating and place making. We estimate that only $10-20m is being returned, with the rest contributing to general revenue. If Council chooses not to do this, and instead wishes to raise new revenue, the options described above can easily raise $10-50m per year.