City of Wheaton City Council met Sept. 25
Here are the minutes provided by the council:
I. Call to Order
The Wheaton City Council Planning Session was called to order at 7:00 p.m. by Mayor Suess. The following were:
Physically Present: Mayor Suess
Councilman Barbier
Councilwoman Bray-Parker
Councilman Clousing
Councilwoman Robbins
Councilman Weller
Absent: Councilman Brown
City Staff Present: Michael G. Dzugan, City Manager
John M. Duguay, Assistant City Manager
Robert Lehnhardt, Director of Finance
Jolanta Moryl, Assistant Finance Director
Brandon Kowalke, Senior Management Analyst
Halie Cardinal, Public Relations Coordinator
II. Public Comment
There were no public comments.
III. Approval of Planning Session Minutes – August 28, 2023
The City Council approved the August 28, 2023 City Council Planning Session Minutes.
IV. Comprehensive Parking Study Update - Recommendations to Increase Parking Revenue City Manager Dzugan stated that City staff have been conducting a comprehensive study of its commuter and downtown parking assets. The main components of the study focus on demand responsiveness and the financials surrounding parking. Staff will present recommendations and are seeking direction from the Council, especially related to the recommendation to use Special Service Area 8 revenue to support downtown parking.
Senior Management Analyst Kowalke stated that the purpose of the presentation is to present a financial analysis of the Parking Fund; present recommendations for parking revenue increases; and solicit feedback from the City Council on the inclusion of the recommendations into the 2024 Budget.
Regarding the Comprehensive Parking Study itself, Senior Management Analyst Kowalke stated that the City is conducting the study to assess parking utilization, improve parking efficiency, and identify appropriate revenue sources. Parking revenues have decreased since 2019 due to decreases in demand for leased parking, while expenses have increased, and most parking fees have not been adjusted for over 15 years. City staff’s methodology and approach to the study involves assessing revenues, expenditures, and fund balance in the Parking Fund between 2024-2028. Key assumptions for the baseline analysis and projections include expenditures increasing 3% annually and that revenues remain constant. The study is conducted with two main asset groups: commuter parking and downtown parking. In regard to the asset groups, commuter parking includes leased parking lots near the downtown and College Avenue train stations and daily fee parking on-street and in lots. The downtown parking group includes leased lots in the downtown and leased garage spaces in the Central Business District.
Regarding the baseline financial analysis for overall parking, Senior Management Analyst Kowalke stated that there is a significant disparity between annual revenue and cost projected from 2024-2028. The City’s target fund balance is a combination of the amount of funding necessary for capital improvements to parking lots and garages, and a reserve equal to 25% of the Parking Fund’s operating costs. Maintaining the balance at target levels is needed to pay for future capital improvements such as major repairs to parking assets. The target fund balance is projected to not be met by 2025.
The City’s rates for commuter parking fees are below the average of other communities that staff surveyed. Overall, expenses for commuter parking assets are lower than for the City’s downtown assets. It is feasible for the City to increase fees to cover all costs associated with commuter parking. Staff recommends increasing resident leased permits from $60 to $110; increasing non-resident leased permits from $75 to $130; and increasing daily fees from $1.50 to $2. These increases result in a “break-even” scenario for commuter parking through 2026 and bring these fees closer to the average market rate compared to surveyed communities.
In response to a Council question, Senior Management Analyst Kowalke stated that after surveying commuters in Wheaton, approximately 83% of respondents reported that they expect to be commuting more often over the next year. Assistant City Manager Duguay stated that after speaking with Metra staff, they predict a slight increase in commuters.
In response to a Council question, Senior Management Analyst Kowalke stated that the College Avenue lot and parking near Crescent Street have recently had increased parking usage.
In response to a Council question, Senior Management Analyst Kowalke stated that approximately 7% of commuters utilizing leased parking are non-residents, and the other 93% is comprised of residents.
The Council discussed parking rates and the possibility of increasing the daily fees for the premium parking areas such as the College Avenue Station lot. Council members expressed support for increasing the daily fees. Council members further discussed the potential impact of increasing the leased permits’ fees for both residents and non-residents, and how this may cause a reduction in purchases of these permits. Council members stated that evaluating the utilization of various parking areas is critical to determining what parking the City provides, especially when considering ways to decrease costs. Assistant City Manager Duguay stated that Lot 9: Carlton Avenue & Liberty Drive is going to be resurfaced just on the eastern portion since that is the only area being used within this lot. This is an example of the City evaluating a lot’s utilization and acting accordingly, in terms of available parking, to decrease costs.
In response to a Council question, Senior Management Analyst Kowalke stated that it is recommended to implement the fee increases at once as opposed to a phased approach.
For downtown parking specifically, Senior Management Analyst Kowalke stated that the deficit is larger than that of commuter parking largely due to this parking area not being driven by permits or fees.
Staff recommend increasing residential leased permits (garages) from $150 to $170; increasing employee leased permits (garages) from $75 to $120; increasing employee leased permits (lots) from $60 to $100; and increasing the Special Service Area #8 Assessment from $275,00 to $425,000. These increases will generate 41% more revenue for downtown parking over the baseline estimate, but they do not completely satisfy the City’s need for additional fund balance to cover future capital projects.
In response to a Council question, Senior Management Analyst Kowalke stated that in terms of employee leased permits, the impacted parkers would be employees of First Trust and various downtown businesses. Director of Finance Lehnhardt stated that in terms of residential leases, there are approximately 92 leases distributed annually. Senior Management Analyst Kowalke stated that Lot #3 is full, and Lots #4 and #5 are less utilized.
In addition to the recommended increases for downtown parking permit fees, City staff recommends a TIF #3 transfer to the Parking Fund in the amount of $113,00 and a General Fund transfer to the Parking Fund in the amount of $500,000. These transfers, combined with the recommended increases to parking fees, will ensure the Parking Fund’s fund balance can be used to cover planned capital projects through 2028. With the proposed increases implemented, the City’s parking fees for its downtown parking assets would be toward the upper end of communities surveyed for employee permits and above average for residential permits. Regarding the impact of the SSA #8 increase, staff’s recommendation is to increase the SSA #8 property tax levy by $150,000 (54%) for parking. Senior Management Analyst Kowalke noted that funding from SSA #8 for the Downtown Wheaton Association would not be reduced.
Council members discussed the impact of increasing the rates to help improve the Parking Fund without making the General Fund transfer of $500,000.
In response to a Council question, Director of Finance Lehnhardt stated that the rationale for performing the transfer this year is to meet, as closely as possible, the fund balance target.
Council members noted that the goal is to achieve covering the City’s operation costs related to parking. The Council suggested the potential of incrementally performing the General Fund transfer or delaying the transfer to a future year. It was noted that the downtown area is growing, especially in relation to the completion of the Downtown Streetscape Project. The parking in this area is in high demand and benefits businesses.
Related to the next steps in terms of expenditures reductions, Senior Management Analyst Kowalke stated that City staff will assess the feasibility and impact of the following expenditure reductions in 2024: reduction in snow hauling for commuter lots and reduction in enforcement personnel.
In response to a Council question, Senior Management Analyst Kowalke stated that the revenues from parking enforcement are approximately $100,000 annually and enforcement expenses are $200,000.
Related to next steps in terms of the Parking Study as a whole, Senior Management Analyst Kowalke stated that staff are finalizing baseline data on the average occupancy and utilization of commuter and downtown parking spaces. Using this data, staff will propose parking policies and regulations that improve parking efficiency and availability for review by the City Council. Policies under consideration include timed customer parking, a new permit program for employees, proximity-based time limits, and a tiered parking fine structure.
In response to a Council question, Director of Finance Lehnhardt stated that uncollected parking fees from parking violators equates to a significant amount. He stated that City staff have considered devices that attach to violator vehicles as incentives for violators to pay unpaid fees.
Council members expressed support for increasing the SSA #8 property tax levy by $150,000 for parking. Decisions on parking fee changes will be made by the Council once City staff have received and evaluated all the baseline data.
V. City Council/Staff Comments
Councilwoman Bray-Parker thanked City staff for their efforts during the Stormwater Utility Fee Change meeting which took place on Thursday, Sept. 21.
Mayor Suess thanked the Downtown Wheaton Association for executing the Dinos Downtown Wheaton outdoor exhibit and encouraged everyone to visit the display now through Oct. 8.
VI. Adjournment
The meeting was adjourned at 7:56 p.m.
https://www.wheaton.il.us/AgendaCenter/ViewFile/Minutes/_09252023-2387
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