University of Massachusetts Boston Proposal To Increase Parking Fees
Issue date: 9/27/01 Section: News
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The University of Massachusetts, Boston, proposes to increase its parking fees in order to support the increased costs associated with the new campus center and to create a revenue stream to support borrowing to repair the garage. The additional buses required to maintain level service once the campus center opens will increase shuttle bus costs by $600,000. The total project cost to repair the garage and plaza pavers is estimated at approximately $30 million.
Our plan is to complete deferred maintenance repairs to the garage structure in five years beginning in FY 2002. In the sixth year, we will complete the necessary repairs by replacing the plaza pavers which have caused much of the garage damage.
Phase I of the garage project will be completed in summer 2001 using state dollars at a cost of approximately $1.4 million. While we will continue to seek a majority of the remaining funds through the state legislature, the immediacy of the problem requires that we begin this project as soon as possible. Therefore, we are proposing that we borrow $11.2 million of the remaining funds to continue progress through 2004, and request $20 million in state funds to complete the final two phases in 2005 and 2006.
Our plan is to borrow funds from the UMass Building Authority in two segments. The first $2.6 million for Phase II, to be completed in summer 2002, will be expended from the $7 million already borrowed for other projects. The remaining $8.6 million will be borrowed through the Building Authority in 2002. In order to produce a revenue stream to support this borrowing, we are proposing a significant increase in the daily parking rate from $3.50 a day to $6 a day in FY 2002, and $7 per day in FY 2003, with a five percent escalation each year thereafter. We will institute proportionate increases in discount pass rates and we will initiate other programs increasing reserved parking to increase revenues. The revenue generated by this increase will result in a surplus for the first two years which will provide revenues for short falls in years three, four, and five, and will establish a reserve for preventative maintenance. (See attachment A)
Our plan is to complete deferred maintenance repairs to the garage structure in five years beginning in FY 2002. In the sixth year, we will complete the necessary repairs by replacing the plaza pavers which have caused much of the garage damage.
Phase I of the garage project will be completed in summer 2001 using state dollars at a cost of approximately $1.4 million. While we will continue to seek a majority of the remaining funds through the state legislature, the immediacy of the problem requires that we begin this project as soon as possible. Therefore, we are proposing that we borrow $11.2 million of the remaining funds to continue progress through 2004, and request $20 million in state funds to complete the final two phases in 2005 and 2006.
Our plan is to borrow funds from the UMass Building Authority in two segments. The first $2.6 million for Phase II, to be completed in summer 2002, will be expended from the $7 million already borrowed for other projects. The remaining $8.6 million will be borrowed through the Building Authority in 2002. In order to produce a revenue stream to support this borrowing, we are proposing a significant increase in the daily parking rate from $3.50 a day to $6 a day in FY 2002, and $7 per day in FY 2003, with a five percent escalation each year thereafter. We will institute proportionate increases in discount pass rates and we will initiate other programs increasing reserved parking to increase revenues. The revenue generated by this increase will result in a surplus for the first two years which will provide revenues for short falls in years three, four, and five, and will establish a reserve for preventative maintenance. (See attachment A)