I'm sorry, but I'm not buying this equity argument about parking fees being discussed in the Daily News and elsewhere.
I'm sympathetic toward lower-wage workers who may have to pay for parking. I truly am. But I don't think comparisons can be made between people who spend 8-10 hours a day in this town versus those of us who live here and, in most cases, already pay thousands in taxes toward the city and additional hundreds or thousands of dollars to the shops and businesses downtown.
To be clear, I wasn't a proponent of lowering the resident fee to $5, but the issue of equity to out-of-town workers never entered into my thinking. (And let's be honest, would the out-of-town workers have been any happier with the $100 fee if residents were paying $50?)
As critics of the paid parking plan remind us, people have choices and they may choose to shop elsewhere if they don't want to pay for parking. I don't agree because I think Newburyport offers something few places can.
But this argument may apply in the case of employees. Workers do have choices. To work here or someplace else. If the parking costs prove to be too burdensome and outweigh the salaries they'll earn downtown then they'll choose to work someplace else.
And let's be clear, we residents - and out-of-town customers - will ultimately be paying their parking fees anyway. If the parking fee cause shops and restaurants to lose employees, they'll have to raise their wages to cover the costs of the fee. Or, as Mayor Holaday suggested on Monday night, the employers themselves will buy passes that can be distributed to employees.
In either case, that's going to be a cost of doing business that will be reflected in the price of goods and services. And we residents - the lucky ones who only have to pay $5 in parking fees and a thousand times that in property taxes - will ultimately pay their parking fees as well. My hope is that visitors - who have been paying nothing directly into the system - will help cover those increases.
To close, we've got some great employees downtown and the Daily News article identifies some of my favorite businesses as signatories of the petition. But this all goes back to the simple fact that there is no such thing as a free lunch - or free parking. (Ironically, there is such a thing as Park Lunch, which will still offer free parking....and great fried clams.)
6 comments:
Tom, at least we're not alone: http://www.fosters.com/apps/pbcs.dll/article?AID=/20110203/GJNEWS_01/702039737
Growing pains...
The timing of any change in parking is very critical. The best roll-out I have seen was in Manchester, NH. They waited until the good months, and had an extensive consumer and business education and outreach effort. Additionally, Manchester had a small army of Parking Ambassadors to help people learn how to use the new machines.
Brandy Stanley, the Parking Director, is a rock star.
Newburyport isn't Manchester, NH
I agree with Mr. Shanley that the roll-out is going to be crucial to the success of this plan. I wish I had more faith that my fellow citizens would be patient during the inevitable hickups.
No one is claiming that Newburyport is Manchester, but learning how the successes and failures of others can apply to our great city is basic leadership.
Hi,
Thanks for the info anon, i'll have to remember to write the correct return address from now on.
One thing though about the employer paying for the parking pass. Although I fully agree with this, the city should be very careful about mentioning this idea. I expect very few know all of the complex details that this creates.
Just off hand i think we all know that this would be taxable income unless it's carefully put in place following IRS rules. Then it can be treated as pre-tax income, but they just can't purchase 5 passes and hand them out.
Next, this benefit is subject to an exemption. The market value of the space is used to calculate the exemption. It used to be $120/month, it was raised to $230 (i believe) for the past year and extended for this year. So if the market value of the parking spot (what a visitor would pay for the same benefit) is higher than $230/month then the employee pays taxes on that additional benefit. At the moment this looks not to be an issue but at $120/month it might be in the future. I'm not sure if the market value is based on the hours you work or the hours you can park, which would certainly be a higher number.
Finally this benefit has to be provided to all employees regardless of their use or need. So you can't just buy ones for the people who drive. You must give them to the others or give them the $100.
Of course this are all small details but they are legal details and for small business they can be complex to figure out. So the city should be careful to point out that each business needs to find out on their own, of maybe the Chamber can get a tax lawyer to writeup or meet to go over these details.
thanks,
sds
SDS is bringing the heat.
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