Toronto street parking rates could increase for 2nd straight year
Toronto Parking Authority report recommends most on-street rates jump by 25 cents an hour
On-street parking prices across Toronto could jump by 25 cents per hour, as the Toronto Parking Authority (TPA) moves to increase rates for the second straight year.
A new report headed to the TPA's audit and risk committee next week recommends rates for nearly 20,000 spaces citywide increase.
The move would generate more than $5 million, at a time when the city is cash-strapped and looking to all of its agencies for more revenue.
Currently, on-street parking costs between $1.50 to $6.50 an hour, depending on location. If the suggested rate increase is approved, the lowest rate would remain $1.50, but all subsequent categories would jump by a quarter hourly — at most, someone would pay $6.75 an hour.
"It's a modest increase," said Jeffrey Dea, TPA's vice-president of growth and strategy.
"It's our second consecutive adjustment for on-street rates, the second in seven years," he said. Prior to last year's rate hike, the TPA hadn't raised its prices since 2017.
"It felt like it was the right time to continue to push it upwards," Dea said.
In 2023, when city council lifted a $5 cap it had placed on on-street parking rates as part of its long-term financial plan to address yearly deficits of over $1 billion, the TPA board increased its maximum hourly rate to $6.50.
In total, last year's on-street parking increase was estimated to raise as much as $6.5 million.
Even when the consecutive increases are factored in, on-street parking in Toronto is still "considerably lower" than many major cities, the TPA report notes. It says Vancouver charges up to $11 per hour, while Chicago charges up to $9.35 per hour and New York City charges up to $12 per hour.
Rates set to increase at some Green P lots
Rates could also be going up in 112 of the TPA's 294 off-street parking lots and garages — a move the agency says will generate an estimated $3.4 million in revenue, while allowing it to match market demands.
"We set rates to encourage short stay, high turnover parking, so the parking is always available to support local business and communities," Dea said.
The report shows that the TPA is anticipating "historic revenues" of $166 million in 2024 and $182 million in 2025.
Earlier this year, the agency and the city negotiated a new revenue-sharing agreement that will allow the TPA to keep more of what it earns to re-invest its own capital needs, as well as the continued expansion of Bike Share and its EV charging program.
Coun. Paula Fletcher, a member of the TPA board, said those rate increases might be frustrating for some, but they help pay for vital city services.
"Covering those programs, Bike Share, EV charging, and all the new infrastructure for parking, so we're not falling behind the private lots, I think it's fair to say, 'well, that's going to cost you 25 cents more when you're going to get your haircut,'" she said.
Parking profits used to subsidize growing Bike Share program
The agency says in 2025, Bike Share Toronto is expected to have seven million rides in 2025, the agency says — half a million more than in 2024. It plans to further expand its fleet, adding 600 more e-bikes and 900 regular bikes.
The report does not recommend an increase in Bike Share or EV charging rates, as the agency tries to grow both customer bases.
Using parking profits to subsidize Bike Share is a "reasonable trade-off," said Michael Longfield, executive director of Cycle Toronto.
He said he's hopeful that Bike Share expansion can address some concerns he's heard from riders that when they try to book a bike during rush hour, they can be hard to find near some transit stations.
"It's a good problem to have in terms of demand, and I think it shows the importance for Bike Share to continue to build more stations and get us more connected," he said.
If the on-street parking rate changes are approved at the agency's audit committee Tuesday, they'll move to the TPA board for approval. If the increases get the greenlight there, they could be rolled out during the first three months of 2025.
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