Rotorua council reveals cost of parking

An I-Park machine in Rotorua. Photo / Felix Desmarais / LDR

Rotorua's parking system cost more than $1.5 million last financial year, making a net profit of almost $620,000.

Figures obtained through an Official Information Act request from Rotorua Lakes Council revealed total revenue before costs was almost $2.2m.

Council contractor I-Park made up most of the cost, with the contract costing $1,561,893 in the 2020/2021 financial year. Other costs related to a court case.

Ratepayer Paddi Hodgkiss, who has previously spoken of her dissatisfaction with the I-Park system, said she believed many people parked at Rotorua Central mall car park to avoid the council-run parking in the CBD.

"People are parking there because it's free."

Hodgkiss said: "The parking system now is definitely not user-friendly. If it was more user-friendly it would be more acceptable."

Hodgkiss believed many people, like her, objected to paying a card fee on the I-Park machines, which she said was often half the cost of the parking fee itself.

She said the council should consider free, time-limited parking in the city, such as in Taupō.

"[Free parking] would possibly draw more people into the CBD."

She said the loss of revenue from free parking would be worth it as it would help struggling inner-city businesses and the local economy.

Hodgkiss' comments were provided to the council and I-Park for the right of reply. Neither responded in time.

Information provided by the council showed the council made almost $900,000 from parking fees, almost $590,000 from infringement notices and more than $707,000 from prosecution fees, which made up its $2.2m revenue from parking.

Revenue peaked in January last year at more than $223,000 and was lowest just the month before with revenue of more than $125,000.

In the council's OIA request response, deputy chief executive Craig Tiriana said the cost of the I-Park contract in 2020 / 2021 was $1,561,893.

This was a decrease from the preceding year, when the cost was about $1.7m.

In 2018 / 2019 it was about $793,000, which the council has previously explained was because the system was implemented that year.

Tiriana said there were also $8050 of legal costs for parking last financial year – related to a single customer's court hearing request.

He said the plaintiff's claim was ultimately struck out by the court.

The total council revenue – from all sources – for the year was more than $142m.

Rotorua Lakes Council's paid parking service covers 1350 parking spaces, including the Pukuatua St parking building, meaning after costs it made almost $460 per parking space in the 2020/2021 financial year.

The council was also asked if issues with I-Park – acknowledged in February 2020 – had been resolved, how well it thought the contract was working now and what revenue it expected from parking in a non-pandemic year.

It was also asked if it claimed court costs from the plaintiff whose court hearing was struck out.

Rotorua mayor Steve Chadwick was asked if she believed Rotorua's ratepayers were getting a good deal with I-Park and what her view was of the net revenue.

The council and mayor did not comment in time.