Parking in Tauranga: Council lost more than $2 million in the past year

CBD retailer Bill Campbell of Fancy That says losing free parking will be "killer" for local businesses. Photo / Andrew Warner

Tauranga City Council has lost more than $2 million in the past year running the city's parking facilities.

But not all are convinced that's reason enough to consider selling the assets or for returning paid parking to the CBD's streets - a move retailer Bill Campbell says would be "killer" for businesses like his.

Figures obtained by the Bay of Plenty Times through the Local Government Information and Official Meetings Act show the council made $4.6m in parking revenue for the 2020/21 financial year.

However, the council spent $6.7m - resulting in a loss of $2.1m.

Among the council's costs was $2645 for external legal advice after someone challenged a fine.

Other expenses included salaries, administration, depreciation and overheads.

In total, the council's entire revenue for the 2020/21 year was $378.3m.

The parking figures relate to on- and off-street parking, with the Spring St and Elizabeth St parking buildings being the highest-earning in the CBD.

A Tauranga City Council parking building at the corner of Spring St and Durham St. Photo / Andrew Warner

At a council meeting on February 21, the commission accepted plans to consider selling the two parking buildings to help fund larger infrastructure projects such as the civic rebuild.

Asked if the parking buildings' financial loss helped prompt the proposed sale, council director of transport Brendan Bisley said the potential sale was a result of a council assets review "as it looks at the future costs for providing the infrastructure the city needs to grow and thrive".

Bisley said some assets were not "core" to the council and it may be appropriate to consider selling them, using the money to pay for infrastructure "that council will need to own and operate".

"Doing this reduces the rates burden on ratepayers and also ensures that functions that are best provided by the private sector are, rather than council providing them."

In 2020, the council amended a bylaw to trial free on-street CBD parking for two hours to help local businesses struggling from Covid-19 restrictions. The trial was expected to cost $100,000 a month in lost revenue, which would be partly offset by increased parking fees for off-street parking.

A Tauranga City Council parking building on Elizabeth St. Photo /Andrew Warner

The trial was extended through last year, despite a spike in people fined for breaching the time limit, but in last month's meeting commissioners decided to consider removing the free parking, and increase the standard parking fee 20 per cent.

Bisley said the council's parking budget was set before the two-hour free parking trial was extended and the trial had affected revenue "as the income is less than budgeted due to the first two hours being free".

The contract to maintain the council's parking machines costs about $150,000 a year, and running and maintaining the two parking buildings costs about $195,000 a year.

Citizens' Advocacy Tauranga chairman Rob Paterson said he was not happy about the $2m loss from the parking buildings "but it worries me more [the council is] looking to flog them off".

"If you provide a public facility, you will take some loss of money - that's fair - but you don't expect them to flush it down the toilet. They should be able to break even. Maybe the buildings don't make too much but once they're gone, they're gone," he said.

Citizens' Advocacy Tauranga chairman Rob Paterson, pictured in a council meeting. Photo / George Novak

CBD retailer Bill Campbell has long had views about the council and parking, saying carpark provision was the lifeblood of his business and others.

Campbell, who owns Fancy That on Devonport Rd, was not concerned about the lack of parking revenue. He expected a downturn of some degree.

"I think everyone is running at a loss at the moment. That's just Covid. You have people working from home, fewer people coming into town. At Dive Cres, the car parks wouldn't even be half full these days."

Traditionally, free car parks on Dive Cres have been well used by people working in the CBD.

"That must affect council revenue."

Campbell was concerned at the potential end of the free parking which, if it went ahead, was "going to be killer" for retailers like him.

"That free parking has held a lot of businesses from going to the wall. It's still attracting people to the city. Ending it will kill us.

"They want the city to survive, prosper and revitalise but we can't do that by acting negatively. You have to do something positive for the people."

The council is developing a parking strategy document that will determine parking provision, charges and availability. It will consult the public about free parking and increased charges.