Financial Projection

Post

 

PACT Financial Projection: $2.84 Million per year

Monterrey and Pacific Grove were used as comparison areas for this projection.  First, as nearby visitor-oriented locations, their use rates are similar to Carmel-by-the-Sea.  Second, assuming their cost per hour would be similar to Carmel’s future costs, we can extrapolate their total annual revenue and total number of on-street paid parking spaces to project a potential revenue amount. Pacific Grove charges $2 dollars per hour for its spaces (near aquarium) and Monterey charges between $1.75 and $2.25 based on proximity to the Aquarium/Cannery Row.

 

A conservative approach was used to arrive at $2.84 million: to include (1) fewer total parking spaces and (2) using the lower of the two amounts for annual revenue per space.  Taking the two comparison Cities average revenue per space of $5,625 yields a projected amount of $4.5 million in annual revenue for Carmel.

Monterey

  • Number of On Street Spaces: 510
  • 2022 revenue (510 spaces): $3.92 Million
  • Revenue per space for 2022: $7,700

Pacific Grove

  • Number of On Street Spaces: 101
  • 2022 revenue (101 spaces): $358,598
  • Revenue per space for 2022: $3,550

Carmel-by-the-Sea Projection

  • Number of On Street Spaces: 800
  • Future Revenue ($3,550 per space): $2.84 Million
  • Future Revenue ($5,625 per space): $4.5 Million

NOTES:

  1. There are currently 897 spaces within the area being considered for paid parking. Our projection considers the possibility that the total number will be reduced by some amount as public input is received.
  2. This projection assumes the same average use rate as that experienced in Monterey and Pacific Grove.
  3. This projection also assumes Carmel will approve the same cost per hour rate if a program is actually made operational.

PACT Program goals do not specify revenue as priority.

This said, if approved, revenue from the PACT Program could be used for things like improving bike and pedestrian paths, funding a long-range business district planning effort (for safety and less congestion), and to help with aging City infrastructure (for example, drainage, fire hazard reduction, etc.).