The Parking Authority will be dissolved and parking services in the city would be shifted to a Parking Utility, under legislation introduced earlier this month by City Council.

The governing body approved a resolution and introduced two ordinances during its Sept. 10 regular meeting related to dissolving the Parking Authority and creating a Division of Parking Utility that would fall within the city’s Department of Administration.

A resolution (AR-206) formally submits an application to the state Local Finance Board for approval of dissolving the authority. One ordinance (O-19-18) dissolves the Parking Authority and another (O-20-18) refinances $3.6 million in Parking Authority debt, which the city will assume.

The Parking Authority, which was created in 1954, is an autonomous agency overseen by a five-member board of parking commissioners who are appointed by the mayor and confirmed by City Council.

City Administrator Cherron Rountree described the dissolution of the Parking Authority and transition to a Parking Utility as a “windfall” for the city that will help stabilize taxes. The move also will give City Council more direct control over parking. The combination of Bier’s retirement and parking concerns often raised in recent years led to the decision to shift to a Parking Utility, she said. In the short term, parking regulations and rates will remain consistent but eventually a long-term parking plan will be developed, according to Rountree.

It’s not uncommon for municipalities in New Jersey to have a Parking Utility that oversees parking services. Rahway also has a sewer utility and water utility, which sets rates for those services, including Hoboken, Jersey City, Somerville and Asbury Park.

The 2018 Parking Authority budget anticipates $1.382 million in operating expenses and $1.731 million in revenue, including:

• $1.147 million from permit fees;
• $440,236 from developer fees;
• $114,000 from meter fees; and,
• $30,000 from fines/penalties.

The Parking Authority manages the 524-space parking deck on Lewis Street, on-street parking meters, and another 473 parking spaces in various lots and spaces throughout the city.

The process is likely to take several months and the transition would probably aim to be complete by the start of the new year, Rountree said. A public hearing and final approval of the ordinance is not likely to take place at the October City Council meeting but sometime after approval is granted from the state Local Finance Board, she said.

Revenue derived from parking operations will be segregated and kept in in a separate Parking Utility Fund, according to the ordinance (O-19-18). Disbursements for the operation and maintenance of the Parking Utility will be taken from the Parking Utility Fund.

During council comments at the Sept. 10 meeting, City Councilman At-Large James Baker said bringing parking services into the organization of the city government will further its efficiency and “other plans to ameliorate the parking situation in Rahway.”

A review of minutes from the Parking Authority’s meetings for 2017 and 2018 to date – obtained through an Open Public Records Act (OPRA) request — don’t indicate any discussion about dissolving the entity.