Downtown Parking Management Updates

Scottsdale is often mentioned because parking in Old Town is generally free to users. However, it’s important to remember that parking is never truly free — it always has a cost. The difference is simply who pays for it and how.

In Scottsdale, the City funds construction, maintenance, and enforcement of downtown parking through broader city revenues and bond funding rather than charging users at the meter. In other words, residents and taxpayers support the parking system indirectly through the city budget.

If Fort Collins chose to make all downtown parking free to users, we would still need to cover those same costs — building and maintaining garages, enforcement, snow removal, lighting, repairs, technology, etc. That funding would have to come from other sources such as sales tax, property tax, or reductions in other services.

That raises a policy question: Should the general public — including residents who don’t park downtown — subsidize the full cost of downtown parking? Or should a portion of the cost be paid directly by the people who use it?

Both approaches are valid policy choices, but they have different implications. A fully “free” model shifts costs broadly across the community. A user-paid model aligns costs more directly with usage and can reduce pressure on general tax revenues.

As we evaluate parking options in Fort Collins, these funding trade-offs are an important part of the discussion.

Is the parking system currently losing money?

Yes. With ongoing maintenance requirements, the three City-owned parking garages operate at a loss.

Garage revenue declined after the system moved to a gateless model in 2019. The pandemic further changed parking behavior and reduced transient parking demand.

The proposal includes upgrading to a fixed license plate recognition (LPR) system or a gated system with LPR to improve accountability, reduce revenue leakage, and enhance the customer experience.

These updates are already planned and align with consultant recommendations.

Has the City delayed important garage maintenance?

No.

A 2019 condition assessment identified needed repairs in the Civic Center Parking Structure. Due to pandemic-related impacts and reduced downtown activity, maintenance was deferred until parking behavior and funding stabilized.

A post-pandemic assessment determined that replacement — not repair — was needed. Additional time was required to:

Maintenance planning was adjusted due to financial and operational impacts from COVID-19.

Are two parking officers assigned per enforcement vehicle?

No. Parking Enforcement Officers operate with one officer per enforcement vehicle.

There is one specific downtown enforcement route where two officers are assigned due to:

This configuration improves safety and operational efficiency in dense areas.

The City has explored right-hand-drive vehicles. In 2019, options were limited and costly, with no electric vehicle models available.

Future upgrades aim to reduce traffic disruption and allow officers to serve in more ambassador-style roles downtown.

Why are many tickets currently issued as “courtesy” tickets?

Currently, the first overtime violation is issued as a $0 “courtesy” citation.

This provides education about:

This practice has historically been viewed as customer-friendly.

However, staff and City Council have supported eliminating the first free overtime citation as part of the downtown optimization plan.

Updating the fine structure would:

Revenue impacts include:

How much will paid on-street parking cost to implement?

The estimated upfront cost for implementing paid on-street parking (with a reduced footprint) is approximately $1.7 million. This includes signage and parking access and revenue control systems.

Estimated additional annual revenue from paid on-street parking is approximately $2.5 million.

Based on these estimates, the updated system would pay for itself within the first year. Ongoing revenue would support:

Will paid parking hurt local businesses?

Paid on-street parking is common in successful downtowns across the country. When parking is priced and managed properly:

Comparisons to other communities show that paid on-street parking did not reduce sales tax revenue in those downtown areas. While the City is not claiming paid parking increases sales tax, evidence suggests it does not harm local businesses when implemented with fair pricing, clear rules, and convenient alternatives.

A managed parking system ensures spaces are available when people want to shop, dine, or run errands, helping support healthy, vibrant businesses downtown.