Hamilton councillors will look at hiking hourly street parking rates that are among the cheapest in Canada.

The city's $1-per-hour meter rates are the lowest among cities participating in cross-country benchmarking studies of municipal services. The average rate among those cities is $1.88 per hour.

Councillors increased the cost of monthly passes for some municipal parking lots last year by $10 but left meter prices alone.

Coun. Chad Collins called street parking rates an "obvious opportunity" to raise more revenue in a year where councillors are struggling to rein in a possible 4 or 5-per cent average tax hike. To cut the anticipated tax increases below 2 per cent, councillors must find nearly $20 million in savings or new revenue.

"We continue to have substantially lower rates than comparable municipalities, in some cases a quarter of what others charge," he said.

Councillors supported his motion to have parking staff consult with neighbourhood business improvement groups on a 25 or 50-cent hike and report back before the 2017 budget is approved.

Staff will also report on a possible $5 increase for monthly parking lot rates, as well as the prospects to add up to 283 new meters, mostly in the lower city.

If the city implemented all of the proposed changes it would collect close to another $650,000 in revenue annually.

Coun. Jason Farr, who represents the downtown ward with the most metered spots and municipal parking lots, said the changes make sense as council pursues "austerity" budget measures that include a closed-door debate about possible job cuts.

He also argued council has a mandate to give citizens the option to "get out of their cars." That's a tough sell, Farr said, when it costs less monthly to park at a majority of city parking lots than it does to buy a $95 bus pass.

A parking rate hike would be easier for downtown businesses to swallow if it was paired with upgraded technology — such as the ability to pay by phone, for example, said Kerry Jarvi, executive director of the downtown BIA.

"We're constantly fighting the assumption that there is no parking (downtown), so adding to the cost is just one more factor that might keep someone away," she said. "But if you make it easier, more convenient for people, I think that would be more palatable."

Otherwise, Jarvi said a similar discussion during budget talks last year showed downtown merchants were split over whether a 50-cent hike would make a difference to customers.

Parking head Marty Hazel said the city will have upgraded its enforcement technology this spring to the point where it can explore pay-by-phone technologies or apps. But council will still have to weigh in on the options later this year — and find the money to pay for any change.

The city has around 2,500 traditional parking meters as well as a growing number of pay-and-display boxes that allow the use of credit cards.

Street parking rates by city Hamilton $1/hour

Thunder Bay $1.25/hour

London $1.50/hour

Burlington $1.75/hour

Windsor $1.75/hour

Loading... Loading... Loading... Loading... Loading... Loading...

Guelph $2/hour

Ottawa $2.50/hour

Toronto $1.50-$4/hour*

Calgary $2-$4/hour*

Winnipeg $1-$5/hour*

*Varies by location

Possible new parking meters Ward 1 - 43 ($10,750)*

Ward 2 - 45 ($21,600)*

Ward 3 - 86 ($20,950)*

Ward 4 - 63 ($19,230)*

Ward 7 - 46 ($19,230)*

*Estimated new revenue