13. Allocate most parking revenue to the area where it was collected.

One of the main reasons residents oppose parking fees is their perception that the collected money simply disappears into the municipality’s general budget, serving as a revenue-generating mechanism rather than a public benefit. Many view parking fees as an additional financial burden rather than a tool for improving their community.

A proven approach to address this resistance is to establish “Parking Benefit Districts”, where all or most of the revenue from parking fees is reinvested directly into the neighborhood where it was collected. This creates a self-sustaining local economy, where residents and businesses see tangible improvements in their immediate surroundings.

How Parking Revenue Can Be Used Locally

Parking revenues can be allocated toward:

• Upgrading sidewalks and public spaces (see recommendation #3).

• Improving accessibility and cleanliness in the area.

• Enhancing local parks and community spaces.

• Supporting small businesses through infrastructure or promotional initiatives.

• Aesthetic improvements to building facades and streetscapes.

Alternative Revenue Distribution Models

In addition to direct reinvestment in infrastructure, alternative models could be considered:

• Tax Rebates for Residents: Local residents could receive a small property tax credit (Municipal property tax discount) funded by parking revenue, whether or not they use on-street parking.

• Choice Between a Parking Permit or a Rebate: Households could choose between receiving a residential parking permit or an equivalent rebate, ensuring fairness between car owners and those who rely on alternative transportation.

• Subsidized Mobility Packages: Instead of receiving a parking permit, residents could opt for discounted public transport passes combined with bike- or scooter-sharing memberships, encouraging sustainable mobility choices.

Ensuring Equitable Investment Across the City

Since not all parking areas generate the same revenue, a portion of funds should be redistributed to improve parking management in other areas with lower revenue generation. This would help balance investment across different neighborhoods while maintaining a strong connection between local fees and local benefits.

By implementing such a system, both residents and decision-makers will begin to view parking revenue not as a cash grab, but as a structured tool for optimizing urban space and improving neighborhood quality of life.