Council parking revenue takes a financial hit during coronavirus crisis

Deserted shopping strips and beachside carparks have cost councils millions in lost parking revenue and even put one affluent council in the red.

Lockdown have caused parking revenue to plummet with one council recorded a budget deficit as a result. Picture: iStock

Victoria’s lengthy lockdowns have turned once thriving shopping strips, transport hubs and bustling beachside carparks into ghost towns, causing some councils to lose out on millions of dollars in parking fees.

A Leader/Saturday Herald Sun investigation has revealed the full extent of the dwindling parking revenue to councils’ bottom line, with one affluent council recording its first ever budget deficit.

Boroondara Mayor Garry Thompson said the council had suspended ticket machines and eased parking controls in carparks during the pandemic to help support businesses and the local community.

The council also called off its grey ghosts, with timed parking restrictions near hospitals and Centrelink offices not enforced.

The relief measures came at the expense of $1.24 million in revenue in 2020-21 — a loss of about 65.2 per cent on 2018-19 figures.

The council estimates its loss of parking revenue for 2019-20 to be $458,551.

“The loss of revenue from parking has contributed to council’s budget being in deficit for the first time in its history and will constrain council’s capacity for new initiatives in response to community need,” Cr Thompson said.

“It will take time to recover.”

Cr Thompson said the council would need to consider “scaling back” or postponing some projects to try and recoup the loss.

A Melbourne City Council report shows parking fee and fine revenue has plummeted by $27 million since July 2020, compared to the same period last year.

Port Phillip Council Mayor Louise Crawford said the coffers had taken a $4.6 million hit so far this financial year, with paid parking revenue sitting at $4.9 million — less than half the amount compared to the same time last financial year.

The council’s total income from council-run carparks and on-street sites last financial year was $13.4 million.

Cr Crawford ruled out increasing prices of council services to recoup the dip in parking revenue.

Moreland Mayor Annalivia Carli Hannan said suspending paid parking at its seven busy off-street carparks in Brunswick during the pandemic had cost the council $194,000 so far this financial year.

Cr Hannan said the council had lost a further $83,000 in parking revenue in the 2019-20 financial year.

Bayside Council’s director of city planning and amenity, Hamish Reid, said there had been a drop of 8 per cent (about $1.1 million) in paid parking revenue this financial year, to the end of January compared to the same period last year.

Glen Eira Council lost out on about $266,600 in parking revenue between March and December last year.

Planing, place and sustainability director Ron Torres said the municipality had “a relatively small number of ticketed parking spaces”, located around Monash University and Caulfield train station.

The council has made just $24,066 to date during the 2020-21 financial year, compared to $297,913 last financial year.

Mr Torres said the council had “accepted the loss in revenue” and was not looking for ways to recoup the money.

“Council … considers that its approach to parking enforcement during lockdown was reasonable given the challenging circumstances our community faced,” he said.

Parking revenue in Whitehorse fell by $1.49 million during 2020, while Wyndham Council reported a loss of $40,667.

City operations director Stephen Thorpe said the loss was a result of the council waiving 253 business parking permit fees in Werribee and Hoppers Crossing last year as part of its economic support package for businesses in the area.

Kingston Council did not reveal its exact parking revenue but said there had been “very little change from last financial year”.

“The City of Kingston only charges a limited fee for parking for non-Kingston residents in some popular off-street foreshore parking area,” planning and development general manager Jonathan Guttmann said.

“Given the peak lock down period through COVID-19 did not cover the summer foreshore period the impact on our revenue has been very minimal,” he said.

City of Greater Bendigo revealed its paid parking revenue had dropped by $1.4 million so far this financial year.

Safe and healthy environments acting manager Samuel Johnston said the council would try to absorb the loss by reining in expenditure in other areas.

He said the council would also consider increasing its borrowings in the future to help make up the shortfall.

City of Ballarat did not reveal the exact figure, but reported a 50 per cent drop in paid parking revenue this financial year.

Casey Council chief financial officer Bernard Rohan said the council did not operate any paid parking venues, however the revenue from parking fines had dropped by $580,000 in 2020 compared to the year before.

Similarly, Monash Council reported parking infringement income had dipped by $2.4 million to the end of December.

Knox and Mornington Peninsula councils do not operate any paid parking venues.

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