The San Diego City Council Monday voted to double the city's parking meter rates in an effort to address a looming $252.2 million deficit.
The city manages 3,811 paid parking meters representing 5,332 spaces, 4,449 of which charge $1.25 an hour. These would move to $2.50 an hour, with other meters in less-trafficked parts of the city charging less as a result of Monday's vote.
This is expected to bring in $800,000 each month for an average of $9.6 million annually, according to a report by the city's independent budget analyst. For the remainder of the 2025 Fiscal Year, the city expects to collect $4 million.
Ultimately, the move would only generate about 3.7% of the deficit, but Councilman Raul Campillo said more "smart, targeted things," would put the city in a better financial situation when it comes time to slash from the budget this summer.
Part of the package includes waiving a current requirement to share incremental parking meter revenues resulting from the increased rates with Community Parking Districts, instead adding them to the city's general fund.
"We undervalue (parking) compared to other similarly-sized cities," Councilman Kent Lee said, while stating the higher rates might encourage faster turnover, helping business such as retail and restaurants who thrive on such.
Downtown Los Angeles meter rates vary depending on location from $.50- $6 an hour. San Francisco uses "demand-responsive pricing" and ranges from under $2 to $11 an hour. Seattle charges more depending on time of day, with evening rates ranging from $1-6.
Councilman Sean Elo-Rivera supported the move, but was concerned rising costs would impact San Diegans.
"These funds could alleviate pain for tough decisions later," he said. "But I don't want San Diegans to be subsidizing vacations for tourists who can afford to come here."
Councilwoman Vivian Moreno, the sole no vote on the rate increase, said she understood why the item was brought forward but was reticent to raise cost of living more on residents already struggling.
"Many District 8 constituents would not be able to afford parking rates that have doubled," she said. "Rising prices are impacting everybody in our community."
Council President Joe LaCava admitted the city may have made mistakes in the past by not increasing rates incrementally.
"It may have been a little easier to tolerate," he said.
Also approved Monday was a resolution asking Mayor Todd Gloria to come back to council with a package of additional parking reforms with the intent in creating more revenue or saving money for the city.
The expected budget shortfall comprises around 12% of the city's total spending.
"The stark financial realities we face today will test our resolve," Gloria said during his State of the City Address. "This is not the time for retreat. This is not the time to slow down. This is the time to double down. We are moving forward."
A one-cent sales tax measure that could have shored up the impending deficit narrowly failed in November. As a result, Gloria and the city will have to determine how to maintain service levels and what must be cut.
