Hamilton drivers enjoy some of the cheapest municipal parking around.

But those low rates are a drag with the city facing a 5.5 per cent tax hike, councillors say.

"We need to make operational changes, and increased parking revenues are an avenue to do that," Coun. Chad Collins said.

Coun. Jason Farr said there are "much stronger arguments to making increases across the board than status quo."

Last year, meters generated roughly $2.4 million in revenue for the city. In June 2017, council hiked the hourly rate to $1.50 from $1.

A city staff report before councillors on Tuesday notes a 25-cent hike to the current rate would amount to an extra $280,000 in annual revenue. A hike of 50 cents would put roughly $560,000 into city coffers each year.

Staff found out of seven "peer municipalities," Hamilton's metered parking was third lowest. The average rate was $2 an hour.

The report also notes Hamilton's 61 public lots and two parkades — which have roughly 4,400 spaces — have an average rate of $1.05 an hour versus $2.35 in other municipalities.

Increasing the off-street rate for municipal lots by $2 per hour — on roughly 2,500 spaces downtown — would amount to an extra $325,000 in annual revenue, staff say.

A hike of $10 per month on 2,550 permits would mean a $306,000 infusion.

The gulf between local municipal lots and private ones is significant with some of in the latter category charging as much as $6 an hour. Staff believe the highest daily rate for off-street parking is $13.

Farr, who represents downtown, said it makes sense for city lots to be "equal or near equal" to private ones.

If monthly parking rates are lower than monthly bus passes, the city isn't doing enough to encourage people to use public transit or cycle, he said. Moreover, the existence of wait lists for parking passes suggests the "price point is too low."

In 2016, council increased monthly rates for some city lots by $10.

Farr said consultation with business improvement areas (BIAs) is an important step before making hikes. In recent years, the attitudes have become more "progressive" when it comes to parking, the Ward 2 councillor said.

If the city hikes meter rates by 50 cents, the sky's not going to fall, said Kerry Jarvi, executive director of the Downtown BIA. But trying to find that change in your purse, "that's more the problem," she said.

Business owners look forward to the launch of pay-by-phone options come spring, Jarvi noted. That, for instance, would allow restaurant patrons to extend their stay from their table or customers to linger in a shop longer.

Jarvi said wait lists for monthly passes are discouraging businesses from setting up shop downtown, where 65 per cent of the members are professional services. "I need people to come to work. ... Where are they going to park?"

Municipal staff started working on a city-wide parking master plan this fall to determine a "co-ordinated, strategic approach" to the service.

Farr suggested council might support some rate hikes rates for January, but noted others wouldn't likely come into effect until the end of budget deliberations.

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Average meter rates • Calgary — $3.31

• Winnipeg — $3

• Montreal — $2

• Windsor — $1.75

• London — $1.50

• Hamilton — $1.50

• Sudbury — $1.30

• Thunder Bay — $1.25

Source: City of Hamilton

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