Hill Street's Dues: Parking deck covering costs, but not bonds that built it

Hill Street's Dues: Parking deck covering costs, but not bonds that built it

CHAMPAIGN — More than eight years after opening, downtown's Hill Street Parking Deck is consistently making enough money to cover operating expenses, though not enough to cover annual bond payments.

In the last fiscal year, the 600-space parking garage brought in $371,000, with operating expenses of $253,000.

But the city also spent about $1.6 million in 2017 toward the $12.7 million bond it used to pay for the garage.

Bond payments peaked in 2017 and will gradually taper off until the bond is paid off in 2027. With interest, the city will have paid $19 million for the garage.

"With just a little over 600 spaces, and it costing us $12 million to build, each one of those parking spaces (needs to make) about $20,000 to pay off," said Kris Koester, spokesman for Champaign's public works department. "We've got a ways to go."

For the first couple years after it opened, the deck wasn't covering operating expenses, because of the recession.

That's no longer the case, with revenue rising almost every year.

Hourly fees are up from about $49,000 in fiscal 2010 to $188,000 last year.

And permit fees are up from about $59,000 in fiscal 2010 to $183,000 last year.

"Usership keeps increasing," Koester said.

He credited the vibrant downtown and the success of the M2 and One Main developments.

"More people need a place to park," he said.

Koester said the city has no plan to increase rates — 75 cents an hour and permits starting at $342 a year.

"Not currently anywhere on our radar is recommending to council to increase the rates," Koester said.

While revenue has in-creased, operating expenses have stayed rela-tively flat, growing from about $215,000 in fiscal 2010 to $253,000 last year.

Operating expenses include utilities, snow removal, supplies, wages, advertising and a monthly management fee.

Since it opened in March 2009, the garage has brought in a total of $2.17 million, with operating expenses totaling $1.92 million.

Parking-deck revenue

A look at the Hill Street Parking Deck's revenue since it was built in 2009, courtesy of the City of Champaign Public Works Department:

Fiscal year Revenue Expenses Net
2009-10 $107,625 $215,424 -$108,159
2010-11 $184,844 $227,740 -$42,896
2011-12 $214,145 $203,300 $10,845
2012-13 $222,095 $210,898 $11,197
2013-14 $280,156 $221,816 $58,340
2014-15 $275,762 $249,317 $26,445
2015-16 $340,029 $254,588 $85,441
2016-17 $371,260 $252,550 $118,710
2017-18* $174,184 $80,133 $94,051

* — July 1 to Dec. 7, 2017

Revenue sources

Fiscal year Hourly Permit Total
2009-10 $48,627 $58,638 $107,265
2010-11 $91,132 $93,712 $184,844
2011-12 $125,133 $89,012 $214,145
2012-13 $146,231 $75,864 $222,095
2013-14 $175,350 $104,806 $280,156
2014-15 $177,301 $98,461 $275,762
2015-16 $183,776 $156,253 $340,029
2016-17 $188,076 $183,184 $371,260
2017-18* $100,995 $73,189 $174,184

* — July 1 to Dec. 7, 2017

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Robert DeAtley wrote on January 19, 2018 at 11:01 am

The expenses column in the table that accompanies this article is very misleading.  The bond payment should be treated as an expense which would then clearly show the net loss, annually, for the garage.

PSL wrote on January 19, 2018 at 2:01 pm

If parking is not profitable, the city government should not be in the business of providing it. Subsidizing drivers is an exceedingly shortsighted move, and one that is at odds with numerous purported city goals.The city should provide parking (on street and off street) only to the extent that it is able to at least cover its costs.

787 wrote on January 19, 2018 at 5:01 pm

The City of Champaign ordred the demolition of a parking garage, and then a few years later, built one of their own a block away... that continues to fail to break even.  Nothing like getting rid of the competition before failing on their own.

Just like the Library Board, who built a new library building that they couldn't afford either.

Good government.... just not here.