Durham staff flag parking fund shortfall and plan downtown pilot despite near-term revenue hit

Staff warned Durham City Council that the parking enterprise fund shows a structural deficit, largely due to debt-service payments tied to the Morgan Riggsby garage. Finance staff said about one-third of parking costs are debt service and that rehabilitations are being funded through the general CIP to limit near-term cash pressure on the fund.

Options presented include selling parking assets to pay down debt, restructuring the fund to receive general-fund support, charging higher rates, or redeveloping surface lots as longer-term remedies. Staff acknowledged that a proposed downtown parking discount pilot (first hour free) would worsen the fund’s short-term position but could support downtown visitation and align with downtown 2035 redevelopment planning.

Council members asked for comparisons with other cities, details on which assets carry legacy debt versus newer debt, and requested the parking pilot be returned in April. Staff said the pilot and a deep-dive parking study will be included in materials before the proposed budget and that decisions about including the pilot in the manager’s proposed budget would follow council direction.

What happens next: staff will bring the parking-discount pilot and a deeper parking-fund analysis to council in April and will provide more options for long-term fund alignment with downtown redevelopment goals.