The Cost of the Curb: Shifting Edmonton’s Parking from Taxes to User Fees

More people in the city means more cars on our roads and more competition for parking across the city. Additionally, our roads are the highest municipally subsidized assets yet benefit many users that don’t pay taxes here. To address our changing needs, Urban Planning Committee discussed different ways to improve our parking program.

Historically, parking has always operated on a cost-recovery basis, and has adjusted reactively when cost-recovery is not happening. Recently, with rising operating costs, reduced revenues, and competing priorities for parking spaces, it’s clear the city needs to be more strategic with parking on public roads and municipal assets. 

The Committee discussed recommendations from Administration for changes to parking in Edmonton, here is a summary of their recommendations:

Transforming Edmonton's Curbside and Parking Program

In the short-term, City Administration has made several pricing change recommendations for Edmonton’s curbside and parking program. These approaches would support the operating and maintenance costs currently covered by taxes and would prevent needing to increase municipal taxes to cover them. 

Parking rate framework updates

One change from administration was the recommendation that removed the initial 15-minute free parking, which was projected to increase revenue by $1.2 million annually. However, a motion was made in committee to keep those first 15 minutes free, with the caveat that anything over 15 minutes would be fully captured in payment. Ie. Staying for 60 full minutes means paying for 60 minutes. This motion passed unanimously by committee. 

While I understand the committee's desire for this, I think it makes enforcement more difficult and I would rather see initiatives such as bringing back free parking in downtown on evenings and weekends that have a benefit to economic development and downtown vibrancy if we are going to take a hit on our parking revenues. 

Other changes proposed and supported included:

• Updates to better match parking demand. Current City-owned pricing is approximately 40-50% below private lots. We want city lots to stay the cheapest option, but we can better align with the market rate. 
• Structured framework around appropriate parking exemptions. 
• All net revenue that comes from parking fees will directly flow into the Interim Financing Reserve from 2027-2030. This eliminates existing parking structural variances and fund all future technology upgrades. Getting the city back up to modernization while reducing pressure on the tax levy, setting us up for a positive financial future.

Pilot program for paid parking at City facilities

The City will implement paid parking at select facilities, starting with the Muttart Conservatory, Edmonton Valley Zoo, and Fort Edmonton Park. This is a pilot project that will run in 2027.

The cost will be 1 hour free, then $1 per additional 30 minutes, up to a $5 daily maximum. The projected gross annual revenue is $737,000 combined for the three pilot sites. 

The plan is for administration to come back in 2027 and look to council for direction on how to allocate that revenue. For example, revenue coming from the zoo could be put back into benefiting the zoo, revenue from Fort Edmonton Park could directly benefit the Park, etc. 

I don’t support this recommendation at this time. I think it creates further barriers to entry to the facilities we love. In addition, not all of these 3 sites offer reliable transit alternatives to parking that would make them a viable option. Diverting transit hours from other areas that need it far more doesn’t make sense to try and force a solution here. 

Residential Parking Program redesign

These parking program updates will largely focus on using data and neighbourhood context to alleviate parking pressures. 

It will allow the city to tailor parking rules and management to specific neighbourhood needs and balance realistic livability with essential parking demands. Heavy urban growth in communities has in the past resulted in additional burden of parking through redevelopment or densification; this flexibility allows for efficient and equitable use of public curbside spaces. 

Public engagement on the program redesign will extend citywide. We must ensure that changes align with community needs and promote equitable access. Public engagement will happen through 2026, and results will inform an approach to be brought to Council in early 2027. I encourage you to engage in this process or let me know your thoughts.

Commercial Parking Program

The current commercial parking program has inconsistent pricing and timing restrictions across different business improvement areas. This creates confusion and frustration when trying to access businesses and services. Several local businesses have raised concerns to me about other nearby businesses using public street parking to conduct their daily business operations, leaving customers struggling to park- this is a big concern.

This update focuses on allowing for convenient parking for shorter duration stays, and more appropriate locations for people parking for long work shifts. Different tools will be used to ensure equitable access including: dynamic pricing, time limits, expanding and integrating dedicated spaces for commercial loading, accessible parking, passenger pick up/ drop off, and short term courier access. 

Administration will be collaborating with Business improvement areas, businesses and institutional partners to align parking management with their local economic goals. 

Modernized parking technology and enforcement 

Edmonton’s parking current technology limits the City’s ability to make timely, responsive, and evidence-based decisions. To be more strategic and effective, the City Administration is recommending that the parking program needs technological upgrades.

There was a motion made in committee that asked administration to explore options for a tiered schedule for parking violations that would increase the amount due the later you wait to pay your ticket. I suggested an amendment that would also explore discounts to parking tickets for people that pay them sooner, rather than later. This motion passed, and I look forward to seeing the information that comes back from this report. 

Parking Benefit Districts

Parking Benefit Districts (PBDs), allow the City to reinvest parking revenues back into the area where they were charged, facilitating improvements to sidewalks, benches, lighting, and other infrastructure. 

At this time, the Administration has recommended against PBDs. Implementing PBDs now would be putting the cart before the horse, because this model works best in an optimized parking system, and Edmonton’s parking program requires foundational changes before such a reinvestment model would make practical sense. Additionally, I am concerned about equity issues with such a system, and I would rather see revenues go to general funds for all areas since not all wards or areas of the city would have these.

Looking Forward

The impact of these changes is significant. These recommendations are projected to double from $5.2 million in 2026 to $10.4 million by 2028. These funds could relieve pressure on our municipal tax base and support improved operation and maintenance of parking assets in Edmonton.

Most importantly, in order to better serve citizens and businesses, we need to ensure that our parking meets our needs now and into the future. 

Do you feel these updates find the right sweet spot between user fees and the tax levy to cover asset maintenance? I’d love to hear your thoughts.

Erin.