Tampa’s Parking Division prioritizes financial sustainability and maintaining a fiscally responsible approach to parking program management. This is reflected in recent changes to Tampa’s parking system and corresponding increase in net profit. The following highlights the financial standing of the Parking Division for the fiscal year ending September 30, 2023. This serves as a condensed summary report, and the presentation of this financial information does not conform to generally accepted accounting principles or related reporting standards. Additionally, this report is for informational purposes only, and does not serve as a substitute for the City of Tampa’s standard budgeting process.
BUILDING A SUSTAINABLE SYSTEM TO SUPPORT GROWTH ¶
SYSTEM SUMMARY ¶
The Parking Division offers hourly, daily, monthly, and special event parking across its parking garages. This system provides parking for employees, visitors, residents and event-goers and plays a crucial role in economic development throughout the city. The Parking Division also leases the Rivergate Parking Garage to a third-party.
CURRENT SYSTEM
The Parking Division manages 9 city-owned garages and over 30 city-operated surface lots, comprising over 12,000 of-street spaces. The Division also manages approximately 4,000 on-street parking spaces and has oversight of residential parking areas throughout the City.
The network of surface lots are grouped into seven categories: Ben T. Davis Beach, Downtown, Florida Aquarium, Hillsborough Community College, Selmon, Tampa Heights, and Ybor surface lots. These lots provide parking for transient and monthly users.
The on-street parking system in the City of Tampa encompasses approximately 4,0000 parking spaces managed by the Parking Division and are located throughout the City including in Downtown, Ybor City, Hyde Park, Channel District, Tampa Heights, and West Tampa.
Divided into metered & non-metered parking categories, the on-street parking system provides short-term parking and enables visitors and patrons to easily access businesses.
Pick-up and drop-of zones include a variety of offerings such as hotel drop of , valet parking, commercial and passenger loading, 15-minute and 30-minute parking, and spaces dedicated to special cases such as parking for bridge operators.
Tampa's on-street system includes 146 designated motorcycle spaces, metered at the same rate as car parking spaces in the same zone. The system provides inclusivity with 94 disabled spaces that provide free parking and access for users with required permits.
2023 Financial Dashboard ¶
Total Income
$37,068,749
+34% vs. FY2022
Total Expenses
$25,950,501
+20% vs. FY2022
Net Profit Margin
30%
+2% vs. FY2022
Net Income
$11,118,248
+43% vs. FY2022
Repairs
$812,201
+53% vs. FY2022
REVENUES ¶
Major sources of revenue generation include charging for of-street and on-street parking, citations, and other revenue sources. A detailing of revenues by source type from FY 2019 2023 is provided below.
Revenue generated from of-street and on-street parking transactions comprised 90% of the system's total revenue in FY 2023, with 64% and 24% attributed to each sector, respectively. With the exception of the COVID pandemic impacting revenues in FY 2020, the of -street and on-street sectors have seen continued growth.
Year-over-year revenue growth was highest for on-street parking, with an average increase of 49%. Although revenue from on-street parking increased, there was not a consistent year over-year increase in citation revenue. Increases in on-street parking revenue correspond with Tampa’s on-street parking system expansion in 2021 and 2022.
EXPENSES ¶
As an enterprise fund, the Parking Division is responsible for all expenses associated with system operations. In fiscal year 2023, system operation expenses totaled $25,950,501, 50% of which was associated with operating expenses. A detailing of fiscal year 2023 expenses is provided below.
Expenses by source has fluctuated over the past five years, with personnel and operating expenses for parking consistently increasing each year. Fluctuation in other expenses have been primarily driven by subcategory expenses such as Aid to Government Agencies and Utilities Services expenses. Changes in expenses by fiscal year is displayed on the next page. Compared to the previous fiscal year, the Parking Division's expenses increased by 31%.
*Other: includes expenses such as Aid to Government Agencies, Utilities Services, Non-Ad Valorem Notes, and Transfer to Parking CIP.
Based on the revenues and expenses in fiscal year 2023, the Parking Division had a net income of $11,118,248. This reflects a 43% increase compared to the previous fiscal year. This increase in net income provides opportunities for the Parking Division to reinvest in the parking system and prepare for future parking needs.
FUTURE NEEDS ¶
REPAIRS AND MAINTENANCE
Investments to ensure future safety.
The City of Tampa will have to make significant financial re-investments into its parking infrastructure and operations. The 2017 Capital Asset Management Plan has been adjusted to account for added inflation and industry costs. Based on this estimation, Tampa must invest approximately $11,762,056 by 2025. This amount reflects deferred maintenance and repairs outlined in the 2017 Plan . However, new repair and maintenance needs may have arisen since the 2017 assessment and are not reflected in the expenses listed below.
| Repair | High Priority | Medium Priority | Low Priority |
|---|---|---|---|
| Centro Ybor Parking Garage | $24,650 | $1,254,160 | $113,800 |
| Fort Brooke Parking Garage | $18,700 | $3,696,650 | $12,750 |
| Palm Fernando Parking Garage | $5,100 | $1,332,890 | $37,400 |
| Pam Iorio Parking Garage | $10,200 | $1,382,100 | $79,900 |
| Police Parking Garage | $5,100 | $402,356 | $6,205 |
| Tampa Convention Center Parking Garage | $3,995 | $38,490 | $5,100 |
| Twiggs Parking Garage | $21,250 | $1,358,640 | $72,250 |
| Whiting Parking Garage | $9,350 | $530,570 | $85,000 |
| William F. Poe Parking Garage | $9,350 | $1,161,950 | $84,150 |
| SUBTOTAL* | $107,695 | $11,157,806 | $496,555 |
In addition to the deferred maintenance costs estimated above, Tampa's surface lots will need to be repaved. Based on high level asphalt and striping estimates, repaving will cost an estimated $2,993,440.
BEST PRACTICE MAINTENANCE BUDGET ALLOCATION ¶
Industry best practices call for an annual budget allocation of $250 per space for future repairs and maintenance expenses and a biennial structural inspections budget allocation of $30 per space, resulting in an annual allocation of $2,639,840.
FUTURE NEEDS ¶
TECHNOLOGY AND INNOVATION
Investments to support future success.
Investing in technology and innovation is an essential component of a modern parking system. Technology offerings such as parking guidance systems, digital signage, license plate recognition (LPR) vehicles, AI equipped camera sensors and digital curb management technology can enhance the customer experience and increase parking compliance. These tools will increase the Parking Division's efficiency, helping to reduce congestion and carbon emissions and improve air quality. The Parking Division must make substantial investments in technology and innovation to improve their system and align with industry best practices.
TECHNOLOGY ALLOCATION - $13,969,577
In addition to existing system expenses, the Parking Division must allocate funding for deferred and future repairs as well as technology upgrades. To address these items, the Parking Division should be prepared to invest $28,872,173 in capital costs and repair expenses while allocating $2,639,840 annually for future maintenance.
TOTAL INVESTMENT - $31,512,013
OTHER CRITICAL INVESTMENTS ¶
Investments to support Tampa.
As parking continues to play a critical role in enhancing the mobility experience, supporting economic development, and improving accessibility, investing in public improvements should be considered. Parking and mobility industry best practices call for reinvesting parking revenue in the neighborhoods where there revenue was generated. By making strategic public improvements, through Parking Benefit Districts, cities can create a virtuous cycle in which public investment generates future parking revenue, which can later be reinvested into neighborhoods. Strategic investments performed by a Parking Benefit District typically include sidewalk repairs, improvements to bike infrastructure, and adding landscaping and public space.
Investments to prepare for expansions.
As the City of Tampa continues to experience growth and development, the City may elect to build additional parking structures to support future growth. Similarly, existing parking structures may need to be decommissioned and rebuilt to better meet the needs of customers, visitors, residents, and employees. By setting aside funds for future expansion, the Parking Division can prepare for these strategic investments and minimize the amount of debt service needed to construct or reconstruct parking garages. Additionally, the City can set aside funds for future transit investment and the creation of park-and-ride facilities to seamlessly integrate parking and transit, thereby improving access and enhancing mobility.
CONCLUSIONS ¶
The Parking Division operates a financially sustainable system. However, future investments over the next three years will require dedicating revenue to system enhancements rather than transferring to external operations.
FY2023 Recap:
REVENUES
$37,067,749
The Parking Division generated over $37 million in fiscal year 2023. A record high for the parking system.
EXPENSES
$25,950,501
In fiscal year 2023, system expenses also reached a record high of nearly $26 million with about $6 million transferred to other funds.
NET INCOME
$11,118,248
The fiscal year 2023 performance resulted in a net income of just over $11 million, which should be reinvested into the parking system.
FUTURE NEEDS
REPAIRS
$14,902,596
The Parking Division has nearly $15 million in deferred maintenance and repairs which must be addressed by 2025 to ensure a structurally sound parking system.
TECHNOLOGY
$13,969,577
To raise the standard of parking in Tampa and align with industry leading parking organizations and the private sector, the Parking Division should allocate roughly $14 million in technology improvements.
TOTAL INVESTMENT
$31,512,013
The Parking Division should plan to allocate about $28.9 million in parking system investments with around $2,64 million annually for maintenance. Additionally, funding should be set aside each year for emergency maintenance/repairs..
OTHER CONSIDERATIONS ¶
As a part of the Parking Division's process of reinventing urban parking, the Division will need to make additional investments to support economic development, integrate parking and mobility, and enhance customer's parking and mobility experience.
PLANNING FOR GROWTH
Tampa is expected to see continued growth and development. Tampa's parking and mobility system will need to expand to support future growth and address changing user demands. To support economic development, integrate parking and mobility, and enhance customers' parking and mobility experience, the Parking Division should make strategic investments in system expansion, customer education, and signage and wayfinding. By investing in these areas, the Parking Division can meet future needs while maintaining a financially sustainable system.
The Tampa Parking Master Plan will evaluate opportunities to advance Tampa's parking system and align with industry best practices to promote a modern approach to parking and mobility.
The Parking Division aims to develop and maintain an efficient, customer oriented, and financially sustainable parking program to help Tampa flourish as the City continues to grow.