Fernandina Beach Paid Parking generates $38,000 and nets $108,000 overall in First 3 Weeks

By Mike Lednovich/Editor

Fernandina Beach’s controversial downtown paid parking program generated more than $131,000 in gross revenue during its most recent reporting period, with about $108,000 ultimately remitted to the city after expenses, according to financial reports released Monday by City Hall.

Most of the revenue during the program’s startup period came from permits rather than hourly parking transactions.

According to the city’s invoice:

• Digital permit revenue totaled $93,400.

• Hourly parking revenue generated $37,700.59.

An invoice and supporting operating data from the city’s parking management contractor, One Parking, show $131,066.87 in total gross receipts from the program during its initial weeks in February. After deducting operating expenses and transaction fees, $108,372.44 was netted to the city.

The reports provide the first detailed financial breakdown of the program since paid parking launched Feb. 16 in Fernandina Beach’s historic downtown district.

Permit activity included:

• 726 non-city resident annual permits sold at $124 each, generating $89,900.

• 135 city resident permits for third or additional vehicles, producing $3,240 in revenue.

• 7 additional permits in the LWPPA category, producing $168.

• 4 non-resident monthly permits, generating $240.

City residents receive up to two free annual permits, which explains the large number of resident permits issued without revenue attached. The report lists 5,545 city resident annual permits issued during the startup period.

Hourly parking transactions produced $37,700.59 in revenue through the mobile payment system tied to downtown parking signage.

The data shows the following breakdown of parking durations:

• 2,051 one-hour transactions

• 3,130 two-hour transactions

• 1,163 three-hour transactions

• 382 four-hour transactions

Smaller numbers of longer stays were also recorded, including:

• 109 five-hour sessions

• 54 six-hour sessions

• 28 seven-hour sessions

• 17 eight-hour sessions

A total of 6,943 hourly parking transactions were recorded in the reporting period.

Several operating and transaction costs were deducted before the city receives its share of revenue.

Major expenses included:

• Digital permit administration fees: $13,006

• Hourly transaction convenience fees: $6,040.41

• Credit card processing fees: $1,508.02

• Customer response service contingency: $2,140

Total variable and fixed operating costs totaled $22,694.43.

After those expenses were deducted, the net revenue owed to the city was $108,372.44, according to the invoice.

Sales taxes associated with hourly parking transactions are to be remitted separately by the city.

Paid parking in downtown Fernandina Beach began Feb. 16 after months of debate at City Hall.

The program covers much of the historic downtown area around Centre Street and the waterfront, where visitors must pay hourly to park while residents and workers can obtain permits.

City officials have said the program was designed to:

• Generate revenue to pay for historic downtown improvements

• Improve parking turnover in high-demand areas

• Encourage the use of peripheral parking lots

Early data previously released by the city showed more than $100,000 in revenue generated during the first week of permit sales and hourly parking activity, driven largely by permit purchases.

The paid parking program remains one of the most contentious issues in Fernandina Beach.

Opponents organized a citizens group seeking to repeal the ordinance that authorized paid parking and have argued the system discourages residents and visitors from coming downtown. A vote on paid parking is slated for Aug. 18.

One important economic barometer is paid parking's impact on downtown businesses. There are no published reports to date to gauge its effect.

The paid parking program has also led to a citizens backed recall effort of two city commissioners - Genece Minshew and Tim Poynter - who voted for the program.

Supporters on the City Commission have said the program addresses long-standing complaints about downtown parking shortages and shifts part of the cost of maintaining the historic district’s infrastructure to visitors.

The financial reports released by the city provide the first detailed accounting of the system’s revenues and expenses as the program continues to roll out.