Fall 2008 and
Fall 2009
Parking Permit Fee
Proposal
February 2008
1
Current Financial
Requirements
• Reserve requirements
– TAMU Rule 23.02.02.M1, dated April 24,2006,
requires that all university auxiliary departments
maintain a three month operating reserve
– In addition, the rule requires the auxiliary to
maintain 115% of the succeeding year’s annual
debt service payment as funds not allocated or
budgeted for any other purpose
2
Current Financial
Requirements
• Deferred maintenance/capital renewal
– Estimates suggest that $2M/year is needed to
address deferred maintenance
– In addition, $1M/year is needed going forward for
capital renewal
• New budget assessments began in FY07
– Auxiliary assessments in the amount of $387K
– Group Insurance Premium assessment in the
amount of $74K
3
Current Financial
Requirements
• Increased utility costs
– Utility costs for parking are expected to increase
from $394K in FY05 to $662k in 2006 to $972K
in FY07. They are expected to remain in the $1M
range for the next few years.
• The savings from the reduction in force and
reorganization have been offset by the new
assessments and increased utility costs
4
Financial Impact of the
Increase
$ Millions
Parking Reserve Projection
15.0
10.0
5.0
0.0
FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11
Reserve Balance
5
Required Reserves
Proposed FY08-FY11 Rates
Compared to FY06-FY07 Rates
Permit Type
FY06 FY07 FY08 FY09 FY10 FY11
Garage:
Proposed
Priority Bay
Reserved Num.
Faculty/Staff Unres.
Student Unres.
$504
459
374
374
West Campus Garage
374
$504
459
374
374
374
$600
516
420
420
240
$660
576
432
432
264
$720
612
444
444
280
$720
612
444
444
280
210
175
351
63
63
247
159
210
175
351
63
63
247
159
240
240
420
80
80
312
192
264
264
504
85
85
336
216
280
280
612
88
88
360
240
280
280
612
88
88
360
240
-
-
Surface Lot:
Student
Faculty/Staff
Reserved Num.
Motorcycle
Night Parking
Gated
University Apartments
Other:
6
Business Permits
25
?
?
?
Proposed Strategy
• The recommended strategy was to increase
parking permit fees in FY08, FY09 and FY10
– Eliminate free parking and services (e.g. retirees, university
vehicles, traffic control services)
• special events incl. football ($2 per space increase FY08)
• business permits ($25 FY08)
– Begin to address the deferred maintenance/capital renewal
needs
• Completed a detailed assessment of every parking lot and garage on campus and
ranked them according to condition
–
–
–
–
7
Lots in the worst condition: 1, 23, 30, 32, 36, 37, 38, 47, 51, 50, 55, 61, 64, 72 and 100j
Begun replacement of expansion joints in Southside Garage
Planning phase for rebuilding Lot 1 at the Connally Building
Researching means of reducing construction costs
Proposed Strategy
– The proposed strategy will meet reserve
requirements as required by TAMU rules within 5
years
– Maintain current service levels
– More closely align fee structure with service levels
• $25 Business Permit fee had 10% reduction in the
number of Business Permits
• TSAC continues to discuss the Business Permit
program
– Achieve long term financial sustainability
8
Rationale for Specific
Increases
• Reserved numbered spaces
– Higher level of service
– Higher cost of enforcement
– Lower utilization of spaces
• Reduced WCG rate
9
– Replaces overnight parking in Lot 100, which is a
problem for special events
– Increased usage of WCG (5400 permits)
– Moves students from Reed Arena (Lot 100)
– Gives access on football game days (abuse)
Rationale for Specific
Increases
• Faculty/Staff surface lot
– Adjusts the price differential between student and
faculty/staff parking which maintains
• University business overlays
– Currently offered at $25, a small reduction in the
cost born by other permit holders
– Reduces utilization of visitor and permit parking
areas
10
Proposed Project Costs
FY08 - FY11
FY 2008 Improvements
Est. Cost
FY2009 Improve.
Est. Cost
FY 2010 Improve.
Est. Cost
FY 2011 Improve.
Est. Cost
Repave Lots 23, 32,
Repave Lots 1 & 30A-
Repave Lots 36A-C;
37, 38, 47, 51, 55 &
Repave Lots 100 J
C; 355,829 sq ft of
263,614 sq ft of
64; 671,008 sq ft of
& 72; 255,130 sq
asphalt
$
1,450,000 asphalt
Seal coat existing
$
1,375,000 asphalt
Seal coat existing
3,201,436 ft of asphalt
Seal coat existing
100,000 lots
50,000 lots
350,000 lots
SSG Repairs
100,000
50,000
150,000
CCG Repairs
NSG Repairs
UCG Repairs
Other Repairs and
Other Repairs and
Other
Other
Improvements as
Improvements as
Renovations as
Renovations as
350,000 Needed
Additional Debt
25,000
Additional Debt
Service Projects
-
$
2,000,000
needed
-
$
1,500,000
The Garage Estim ate is just that. Many things could change the am ount paid after com pletion including that date, final size determ ined
needed
125,000
75,000
25,000
2000 space
Service Projects
Notes:
and interest rates obtained on final debt principal.
200,000
Additional Debt
Service Projects
$ 1,184,183
Seal coat existing
lots
Needed
11
$
-
$
3,901,436
garage - 30m
2,401,436
$ 3,810,619
Visitor Parking Demand
•
•
•
•
•
12
Increased daytime demand in garages
Desire for consistent pricing on campus
Lot 72 overcrowding after 7pm
Desire for increased access to Evans Library
Desire for increased access to UCG for
student activities at night
Visitor Parking Strategies
13
• Daytime rate increase
• Nighttime rate decrease
• Add visitor spaces on the north side of
campus
• Move business and campus permits above the
gates in University Center and Northside
Garages
• Allow departmental reservations above the
gates in University Center and Northside
Garages
Visitor Parking Rates
Location
Daytime:
UCG, CCG, NSG, Lot 72
(Present Rates)
(Proposed Rates)
Transient Duration
Percentage of Total
(Taken from UCG over
2 month period)
14
Hours
1/2
1
1 1/2
2
2 1/2
3
3 1/2
4
4 1/2
5
5 1/2
6
6 1/2
7
7 1/2
8
$ 2.00 $ 2.00 $ 3.00 $ 4.00 $ 4.50 $ 5.00 $ 5.50 $ 6.00 $ 6.50 $ 7.00 $ 7.50 $ 8.00 $ 8.50 $ 9.00 $ 9.50 $ 10.00
$ 2.00 $ 2.00 $ 4.00 $ 4.00 $ 5.00 $ 6.00 $ 6.50 $ 7.00 $ 7.50 $ 8.00 $ 8.50 $ 9.00 $ 9.50 $ 10.00 $ 10.50 $ 11.00
7.34% 17.01% 24.87% 15.60% 9.34% 6.16% 4.82% 3.25% 2.30% 1.91% 1.33% 1.03% 0.88% 0.69% 0.53% 0.46%
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
WCG
(Present Rates)
(Proposed Rates)
$ 1.00 $ 1.00 $ 1.50 $ 2.00 $ 2.25 $ 2.50 $ 2.75 $ 3.00 $ 3.25 $ 3.50 $ 3.75 $ 4.00 $ 4.25 $ 4.50 $ 4.75 $ 5.00
$ 2.00 $ 2.00 $ 4.00 $ 4.00 $ 5.00 $ 6.00 $ 6.50 $ 7.00 $ 7.50 $ 8.00 $ 8.50 $ 9.00 $ 9.50 $ 10.00 $ 10.50 $ 11.00
Nighttime:
Hours
1/2
1
1 1/2
2
2 1/2
3
3 1/2
4
4 1/2
5
5 1/2
6
6 1/2
7
7 1/2
8
UCG, CCG, NSG
(Present Rates)
(Prposed Rates)
$ 1.00 $ 1.00 $ 1.50 $ 2.00 $ 2.25 $ 2.50 $ 2.75 $ 3.00 $ 3.25 $ 3.50 $ 3.75 $ 4.00 $ 4.25 $ 4.50 $ 4.75 $ 5.00
$ 0.50 $ 0.50 $ 1.00 $ 1.00 $ 1.50 $ 1.50 $ 2.00 $ 2.00 $ 2.50 $ 2.50 $ 3.00 $ 3.00 $ 3.50 $ 3.50 $ 4.00 $ 4.00
WCG
(Present Rates)
(Proposed Rates)
$ 0.50 $ 0.50 $ 0.75 $ 1.00 $ 1.25 $ 1.50 $ 1.75 $ 2.00 $ 2.25 $ 2.50 $ 2.75 $ 3.00 $ 3.25 $ 3.50 $ 3.75 $ 4.00
$ 0.50 $ 0.50 $ 1.00 $ 1.00 $ 1.50 $ 1.50 $ 2.00 $ 2.00 $ 2.50 $ 2.50 $ 3.00 $ 3.00 $ 3.50 $ 3.50 $ 4.00 $ 4.00
Lot 72
(Present Rates)
(Proposed Rates)
$ - $
- $
- $
- $
- $ - $
- $ - $
- $ - $
- $ - $
- $
- $
- $
$ 0.50 $ 0.50 $ 1.00 $ 1.00 $ 1.50 $ 1.50 $ 2.00 $ 2.00 $ 2.50 $ 2.50 $ 3.00 $ 3.00 $ 3.50 $ 3.50 $ 4.00 $ 4.00
Appendix
•
•
•
•
•
•
•
•
15
Parking Permit Pricing History
How Do We Compare to Other Universities?
How Do We Compare to Other Big 12 Schools?
Debt Service Challenges
Cost Savings/Reductions
Proposed Strategies
Financial Impact of the Increase
Pre-tax Parking Fee
Parking Permit Pricing
History
• Over the last 17 years, there have been 8
price increases: FY91, FY96, FY00, FY03,
FY04, FY05, FY06, and FY08
• Over that same period, demand for services
and new parking facilities increased
• Historically, there has been no real strategy to
guide parking fees
16
Parking Permit Pricing History
17
Permit Type
Commuter (9 Month)
Resident Hall (9 Month)
Summer Student
Night
Motorcycle
Faculty/Staff Lot
Gated Faculty/Staff Lot
Reserved Space
Zachry
Garage Priority
Garage Inside
Garage Roof
Garage (Not Reserved)
FY91
$55
75
20
15
35
100
100
135
225
225
200
150
N/A
FY92
"
"
"
"
"
"
"
"
"
"
"
"
N/A
FY93
"
"
"
"
"
"
"
"
"
"
"
"
N/A
FY94
"
"
"
"
"
"
"
"
"
"
"
"
N/A
FY95
"
"
"
"
"
"
"
"
"
"
"
"
N/A
FY96
$75
"
55
35
"
"
"
200
270
270
240
180
N/A
FY97
"
"
"
"
"
"
"
"
"
"
"
"
N/A
FY98
"
"
"
"
"
"
"
"
"
"
"
"
N/A
Permit Type
Commuter (9 Month)
Resident Hall (9 Month)
Summer Student
Night
Motorcycle
Faculty/Staff Lot
Gated Faculty/Staff Lot
Reserved Space
Zachry
Garage Priority
Garage Inside
Garage Roof
Garage (Not Reserved)
FY00
$125
125
65
48
48
132
198
264
396
396
348
348
300
FY01
"
"
"
"
"
"
"
"
"
"
"
"
"
FY02
"
"
"
"
"
"
"
"
"
"
"
"
"
FY03
$133
133
69
54
54
141
210
282
420
420
366
366
318
FY04
$141
141
73
57
57
150
222
300
450
450
390
FY05
$210
FY06
$210
FY07
$240
60
60
159
235
318
477
477
413
63
63
175
247
351
504
504
459
80
80
240
312
420
600
600
420
336
356
374
420
FY99
"
"
"
"
"
"
"
"
"
"
"
"
N/A
How Do We Compare to Other
Universities?
Texas A&M Transportation Services Zoomerang Survey of Parking and Gameday Pricing
Survey Conducted September 2006 (Big XII & Top 20)
2006
Hi
Permit or Service
2006
Lo
Total
Survey
Average
% Total Surveyed
2007-08
Not Offering
TAMU
Service
Commuter Student
$
1,019
$
54
$
349
$
240
11%
Resident Student
$
1,405
$
44
$
400
$
240
8%
Faculty/Staff Surface Unreserved
$
1,476
$
54
$
493
$
240
0%
Faculty/Staff Surface RNS
$
2,268
$
240
$
984
$
420
52%
Faculty/Staff Garage Unreserved
$
1,476
$
200
$
647
$
420
48%
Faculty/Staff Garage RNS
$
2,268
$
336
$
1,152
$
516
71%
Game day Visitor Surface
$
25
$
5
$
18
12 $5 to $20
N/A
How Do We Compare to Other
Big 12 Schools?
Texas A&M Transportation Services Zoomerang Survey of Parking and Gameday Pricing
Survey Conducted September 2006 (Big XII Results)
2006
Lo
2006
Hi
Permit or Service
Big XII
Survey
Average
2007-08
TAMU
% Big XII
Not Offering
Service
Commuter Student
$
396
$
54
$
168
$
240
0%
Resident Student
$
418
$
44
$
190
$
240
8%
Faculty/Staff Surface Unreserved
$
489
$
54
$
247
$
240
0%
Faculty/Staff Surface RNS
$
1,200
$
300
$
705
$
420
33%
Faculty/Staff Garage Unreserved
$
889
$
216
$
433
$
420
33%
Faculty/Staff Garage RNS
$
898
$
336
$
598
$
516
67%
Game day Visitor Surface
$
20
$
5
$
10
19
$5 to $20
N/A
How Do We Compare to Other
Big 12 Schools? (details)
University UC Berkley Michigan
If I buy staff permit for a surface lot space,
non gated near my building I will pay…..
$
159
$
1,800
$
640
Virginia
$
UCLA
432
$
UNC
1,200
$
861
Mary
$
Wisconsin
205
UC San Diego
$
425
to $1,015
$
996
Illinois
$
370
Georgia Tech
$
500
UC Davis
$
UC Irvine UC Santa Barbara
552
$
396
$
Texas
420
$
120
"License to
Hunt"
If I buy a staff permit for a reserved numbered $
surface lot space I will pay…..
318
$
$
210
210
If I buy a student commuter permit in a surface lot I will
pay…
$
2,070
$
$
864
864
1,162
$
$
60
60
You can't get
You can't get
one.
one.
$
$
288
216
$ 1,152
$
You can't get
1,015
$
1,848
You can't get
one.
$
$
684
684
$
$
548
548
$
$
$
1,025
You can't get
one.
170
170
$
$
425
425
$
$
636
636
$
$
$
600
$
840
$
645
$
$
396
396
$
$
420
420
$
$
100
100
one.
312
312
$
$
500
500
$
$
444
444
Perimeter
If I buy a resident student permit in a surface lot I will
pay…
"License to
Only
If I buy an unreserved permit for a garage I
will pay….
$
If I buy a reserved space permit in a garage I
will pay…
$
356
413
Washington
If I buy staff permit for a surface lot space,
non gated near my building I will pay…..
$
$
851
If I buy a staff permit for a reserved numbered $
surface lot space I will pay…..
1,703
$
1,800
$
2,070
Penn State
$
408
You can't get
$
Hunt"
640
$
1,162
Florida
$
432
198
You can't get
one.
one.
$
702
$
to $470.
one.
1,200
You can't get
Maryland
$
$
314
Rutgers
$
861
$
861
Georgia
$
360
$
192
You can't get
You can't get
$
600
$
456
one.
one.
370
You can't get
You can't get
one.
one.
one.
You can't get
You can't get
You can't get
You can't get
one.
one.
one.
one.
Iowa
$
25
to >$600.
$
You can't get
Baylor
$
238
You can't get
Less than
Iowa State
Kansas State
$
104
$
100
$
665
$
1,000
Ok State
$
54
You can't get
one.
$
500
$
1,025
$
552
You can't get
$
600
$
420
$
600
$
840
$
$
$
$
185
$
401
Colorado
$
419
You can't get
one.
R
C
S
You can't get
one.
Texas Tech
873
671
408
one.
Kansas
Missouri Nebraska
Oklahoma
Minnesota Purdue
$
180
$
336
$
420
$
205
$
684
$
200
$
600
$
336
$ 1,032
$
740
$ 1,140
$
750
$
$
179
179
$
$
228
228
$
$
80
80
$ 1,332
$
200
$ 1,452
$
750
one.
50 avail.
If I buy a student commuter permit in a surface lot I will
pay…
$
$
851
851
100
590
$
$
94
94
$
$
166
339
$
$
120
120
$
$
360
360
$
$
192
192
$
$
238
238
$
$
87
87
$
470
$
600
$
360
$
684
$
238
$
345
$
$
75
75
$
$
54
44
$
$
161
185
$
$
402
407
$
$
180
180
$
$
336
336
$
$
349
805
$
360
$
268
$
488
$
220
$
216
$
140
Fall and Spring
If I buy a resident student permit in a surface lot I will
pay…
Only.
If I buy an unreserved permit for a garage I
will pay….
$
If I buy a reserved space permit in a garage I
will pay…
$
20
$
$
851
$
408
You can't get
one.
1,703
You can't get
You can't get
one.
You can't get
You can't get
You can't get
You can't get
one.
one.
one.
one.
$
600
$ 1,140
You can't get
one.
$
665
one.
You can't get
You can't get
one.
one.
$
428
You can't get
one.
$
600
$
336
$
444
$
740
Debt Service Challenges
• Addition of West Campus Garage (WCG)
and Pedestrian Passageway in FY05 added
significant debt service and negatively
impacted reserve balances:
– Approximately $3MM annual debt service for
these two projects
21
Debt Service Challenges
– Planned gradual rate increases were proposed
that would cover the additional debt service costs
• Instead a 6% across the board increase was approved
for three years (FY03 – FY05)
• These increases did not generate enough revenue to
cover the additional debt service
– Additional surface lots were built and expanded
during WCG construction, which added the
capacity to compete with WCG
22
Cost Savings/Reductions
• In August 2005, the department experienced a
reduction in force and reorganization:
– 33 positions were eliminated
– Cost savings were approximately $1M
• Despite this reduction, the same level of
service has been maintained by introducing
technology (e.g., paying and appealing on line
and pay by space machines in pay lots rather
than cashiers) and consolidation of duties and
functions
23
Proposed Strategy
• The alternatives left to address the current
financial requirements are to:
a) increase revenues,
b) decrease services, or
c) a combination of the two
24
Financial Impact of the Increase
FY 2008
Modified
Budget
$ 3,851,871
-
BEGINNING BALANCE - Actual
Estimated
Revenues
Fees
10,621,948
Interest
290,059
Fines/Visitor Pking/Other
$ 5,966,343
Total Revenues
$ 16,878,350
Expenses
Salaries & Wages
3,283,652
Fringe Benefits
737,741
FY08 Required Reserves:
Departmental Operations
1,877,294
Operating Reserve $2.1M
Maintenance & Repair
812,520
Debt Service
$7.3M
Equipment
274,538
Total Reserve
Utilities
1,001,430
Capital Purchases / Deferred Maint.
2,000,000
Requirement
$9.4M
IT Assessment
118,889
HR Assessment
72,736
VPFN Assessment
558,661
GIP Assessment
75,041
Debt Service
6,349,185
Total Expenses
17,161,688
Increase/Decrease in Balance
Revenues less Expenses
(283,338)
ENDING BALANCE
25
3,568,533
FY 2009
Budget
without
fee increase
$
3,568,533
FY 2009
Proposed
Increase
(Decrease)
$
-
FY 2009
Budget
$
3,568,533
10,621,948
295,860
$ 5,989,910
$ 16,907,718
998,835
$
$ 998,835
11,620,783
295,860
$ 5,989,910
$ 17,906,553
3,168,071
759,874
1,900,270
825,645
277,284
1,031,473
1,500,000
121,267
74,918
569,834
76,542
6,350,000
16,655,178
-
-
3,168,071
759,874
1,900,270
825,645
277,284
1,031,473
1,500,000
121,267
74,918
569,834
76,542
6,350,000
16,655,178
252,540
998,835
1,251,375
3,821,073
4,819,908
Pre-tax Parking Fee
• Pre-tax option implemented FY08
• 5% increase from FY07 to FY08 in total
number of participants
• Approximate $140K benefit savings per year
to TAMU
• 99.8% of Payroll Deduction is done pre-tax
26
For Additional Information
http://transport.tamu.edu/parking/announce/08P
arkingForums.aspx
27