Parking Fee Changes in Santa Barbara Undergo Deep Review by Finance Committee

The downtown parking fees of Santa Barbara could be undergoing significant changes this year as the city grapples with diminishing parking department funds.

According to a city report, at the current pace, these funds will be depleted by next year. As a result, the city’s general fund may have to be tapped into, raising concerns as a forecasted $7-million deficit looms.

Downtown Santa Barbara parking lots and garages have experienced a decline in occupancy and revenue, resulting in deficits since 2020. This trend is expected to continue, with 2025 fiscal year expenditures projected to exceed revenues by $3.8 million.

The current funding model, which includes a period of subsidized parking, has contributed to customer behavior that favors shorter visits to downtown businesses, and competition with free on-street parking has further impacted the financial health of the Downtown Parking Fund, according to the report.

To address these challenges, a new funding and management model is being proposed for the Downtown parking system. This includes introducing priced on-street parking, implementing a “pay-by-plate” system, and using License Plate Recognition (LPR) technology for fee enforcement.

Select streets will feature fees on a “pay-by-plate” basis, where a motorist enters their license plate
number into a mobile payment or self-serve kiosk, selects the duration of their intended stay, and pays fees due. The proposed price is $0.75 per 15 minutes in effect from 8:00 AM to 8:00 PM, seven days a week.

The proposed changes for parking garages decreases the subsidized time from 75 minutes to 60 minutes with $2.00 per hour after that. A graph of the all suggested changes is below:

The city staff report states the proposed changes will create a sustainable parking system that serves all users, improves parking turnover, and fosters easy access to Downtown businesses and attractions. However, uncertainties in implementation require a $500,000 transfer from the General Fund to the Downtown Parking Fund to support the changes.

It also acknowledges the potential negative impacts, such as increased parking in residential neighborhoods, and outlines mitigation strategies. The City states it will closely monitor revenues and expenditures and make adjustments and transfers as necessary to maintain adequate reserves.

The responsibility of reviewing the proposed fee adjustments falls upon the Finance Committee. This committee will examine the financial figures, solicit public input, and ultimately advance the item for consideration by the city council.

The final decisions regarding the parking fee changes are expected to be made during the budget vote in June.