Paid Parking Misses $1.8 Million Target, Now Projected to Bring in $1.1 Million a Year

Editor's Note: The city invited local media organizations to a June 16 briefing for updates on the city's paid parking program approximately three months after enforcement began. The session was attended by the Fernandina Observer, Fernandina News-Leader and Nassau NewsLine. City officials presented revenue, permit, citation and operational data, discussed proposed changes to the program, and answered questions from reporters. The following article is based on city staff's information provided in the meeting.

FERNANDINA BEACH — Three months after enforcement began in Fernandina Beach's controversial downtown paid parking program, city officials said the system is generating more than $1 million annually in projected net revenue, increasing parking turnover in the historic district and providing a new funding source for waterfront and downtown improvements.

During a media briefing Tuesday, Deputy City Manager Jeremiah Glisson said the program has generated nearly $750,000 in gross revenue since enforcement began March 16, with the city currently holding just under $400,000 in net proceeds in a dedicated Parking Special Revenue Fund.

Based on current trends, city officials now project the program will generate approximately $1.9 million in annual gross revenue and about $1.1 million in net revenue after operating expenses and management fees.

"We're trending to about $1.1 million a year net in the coffer under the current program," Glisson said.

The update comes as city voters prepare to decide an Aug. 18 ballot initiative that would require voter approval before the city could impose paid parking in the future.

The current forecast falls short of projections made when the program was first proposed.

Glisson said One Parking's original estimate assumed a $3 hourly parking rate and projected approximately $2.1 million in annual gross revenue and $1.8 million net revenue.

However, the City Commission lowered the rate to $2 per hour and approved free permits for city residents, reducing expected revenues.

"The goal was to ease this program and make it as palatable as possible," Glisson said.

Under the current structure:

• City residents receive two free annual permits.

• A third city-resident vehicle permit costs $24.

• Non-city resident permits cost $124 annually.

Since launch, the city has issued approximately 7,600 resident permits and 1,553 non-resident permits.

Officials estimate non-resident permits alone have generated nearly $200,000 in revenue.

The city reported nearly 100,000 paid parking transactions since enforcement began.

The most common parking duration is two hours, followed by three hours. Officials say the system now averages approximately 853 paid transactions per day, with traffic increasing as summer tourism season begins.

The busiest day so far occurred during spring break when downtown recorded 1,870 parking transactions and nearly $10,000 in gross revenue in a single day.

Officials said the data confirms what city leaders have long argued about downtown's economic importance.

"We always said downtown is an economic driver," said Downtown District Coordinator Katie Newton. "Now we have proof of that."

Glisson said most hourly transactions are believed to be visitors rather than local residents, supporting the city's goal of shifting more of the downtown maintenance burden to tourists.

"It really comes down to 8,000 taxpayers that are footing the bill for a lot of the downtown infrastructure," Glisson said. "How do you distribute that burden a little more equitably?"

The city has issued 719 paid citations and 219 warnings or dismissed citations since enforcement began.

Citation revenue totals roughly $40,000.

Glisson said citation revenue represents less than the 10% to 12% of total revenue commonly seen in many parking programs.

"We're trending less than that," he said.

He attributed the lower citation rate to what officials described as a softer enforcement approach focused on compliance rather than aggressive ticketing.

The city currently relies on walking enforcement rather than cameras or license-plate recognition technology.

"There is leakage in any program," Glisson acknowledged. "Increased enforcement is the heavier-handed approach and also has an increased cost."

Although the city has accumulated hundreds of thousands of dollars in net proceeds, none of the funds have yet been committed to specific projects.

The money is restricted by ordinance to improvements, maintenance and operations within the downtown district.

Potential uses include waterfront maintenance, downtown infrastructure projects, parking improvements and debt repayment associated with future waterfront redevelopment projects.

Among the projects potentially eligible for funding is the planned demolition of Brett's Waterway Cafe and reconfiguration at the city marina.

"The funds have not been allocated to any maintenance project or improvement yet," Glisson said.

The city also previewed recommendations from a long-awaited downtown circulation study that will soon move through advisory boards and eventually return to the City Commission.

Among the most significant recommendations:

• Convert Ash Street and Alachua Street to one-way traffic.

• Improve downtown directional signage.

• Relocate loading zones.

• Add approximately 120 parking spaces combined along the two corridors.

• Improve pedestrian crossings.

Glisson said converting the streets to one-way traffic could add roughly 60 parking spaces per street while improving vehicle circulation and pedestrian safety.

The changes would also help accommodate future downtown redevelopment projects and address challenges created by a large heritage oak tree on Ash Street whose roots are damaging nearby pavement.

Officials hope to bring the recommendations to the commission in July.

City officials said they plan several minor adjustments to the paid parking ordinance based on issues that emerged during the program's first three months. One of the most common points of confusion involves motorists who park downtown, leave, and then return later the same day. Because the city relies on walking enforcement rather than cameras or license-plate recognition technology, staff said it can be difficult to determine whether a vehicle has been parked continuously or has made a legitimate return visit.

To address the issue, the city plans to increase allowable parking time in service lots from eight to 10 hours and clarify ordinance language governing return visits. Glisson described the issue as more of a perceived problem than an actual enforcement challenge, noting that few citations have resulted from the situation but that clearer rules would eliminate uncertainty for permit holders and enforcement staff alike.

Despite the program's financial performance, officials acknowledged continued opposition from some residents.

Glisson said staff was surprised by the intensity of public reaction, particularly given that city residents receive free permits and free parking remains available outside the paid zone.

"Paid parking is very personal to people," he said.

At the same time, officials said many residents who initially opposed the program have begun noticing benefits.

Newton said residents frequently tell her they can now find parking spaces downtown for restaurants and shopping.

"When I go downtown for dinner, I can find a place to park now, and that's kind of nice," she said, recounting comments she hears from residents.

One question city officials say they still cannot answer is whether paid parking has affected downtown business activity.

Newton said the city is working to identify meaningful metrics but acknowledged that factors such as inflation, tourism trends and broader economic conditions make analysis difficult.

"We're still trying to figure out what those metrics would look like," she said.

Glisson said the city has not seen an increase in business closures since paid parking began and noted that tourism data from the Amelia Island Tourist Development Council shows some overall softening in visitor activity across the region.

"It would be irresponsible to point to certain things without allowing the data to speak for itself," he said.

The future of the program may ultimately be decided by voters.

An Aug. 18 ballot initiative would require voter approval before paid parking could be terminated in Fernandina Beach.

If voters approve the referendum, the City Commission could still overturn the ordinance by a supermajority vote, Glisson noted.

If paid parking were eliminated entirely, Glisson said the city's primary remaining obligation would be paying off approximately $40,000 in outstanding sign costs associated with implementing the program.

"The program was designed to be easy in, easy out," he said.

For now, city officials say the focus remains on collecting more data and refining operations as the system moves beyond its startup phase.

By early July, officials expect net proceeds in the parking fund to approach $500,000.