After a rise in parking rates in Iowa City, residents and local businesses have been left reeling.

During the Iowa City City Council meeting on May 21, the council voted to increase parking rates for the first time since 2013.

The new rates include a $1 or $2 increase in city parking ramps, with the first-hour free initiative still in place, and metered street parking increased from $1.50 to $3 an hour. Meters in the outlying parts of downtown saw an increase from $1 to $1.50.

The city council cited sustainable financial solutions to fare-free transit, enhanced parking ramp construction, and enhanced cleaning service as to why the increase was needed.

“$1.5 million is estimated to be raised to support fare-free transit service. $1 million is estimated to be raised for planned repairs to our parking ramps,” Iowa City City Manager Geoff Fruin said in an email. “$500,000 is estimated to be raised for our new Block by Block cleaning collaboration with the Downtown District.”

The Block by Block cleaning collaboration is a new initiative by the city council to offer cleaning and hospitality ambassadors in the downtown community.

The council discussed the new parking rates in multiple meetings leading up to final approval.

“The City was forthcoming with these plans with the Iowa City Downtown District,” Fruin said via email. “The parking increase was a component of our collaborative discussions regarding the Block by Block program. Parking was discussed in several budget meetings starting in January, through the approval process in March, April and May.”

Although it was discussed during council meetings, when the new prices went into effect, many in the downtown business community were surprised.

“I didn’t know about the increase until I showed up to work and had to pay the meter,” Miranda Heeren, an employee at Everbowl, located on 312 South Madison Street in downtown Iowa City, said.

Everbowl is located on the outskirts of downtown, so the meter increase was from $1 to $1.50.

“At the end of the day, 50 cents is still 50 cents,” Heeren said.

Catherine Champion, owner of downtown boutique Catherine’s, said she did not know about these increases until they went into effect.

“How I found out was that someone sent it to me in the paper,” Champion said.

Catherine’s Boutique, on Dubuque Street, has been hit hard with the new rates, especially with the street being under a reconstruction project.

Champion said there are now multiple barriers in place for customers wanting to shop at businesses downtown. The parking meters located closest to the boutique cost $3 an hour.

Workers like Heeren, who drive to work, keep the parking rates in their mind.

“I do keep in mind how much I am spending at parking meters each day. It’s $8-12 now. I do have to keep in mind how much that is coming out of my bank account.” Heeren said.

With the new parking rates, the City is hoping to expand and encourage public transit — especially for students when they return to campus in August.

“We encourage all that can utilize the free city and Cambus routes that serve the community. Should students need to utilize a car, we encourage use of our ramps, which are first-hour free and two dollars per hour for subsequent hours.” Fruin said via email.

Champion believes the parking rates should be increased but would like a more equitable decision for the downtown employees, students, and business owners.

“We are not saying parking can’t be increased, we are not immune to what they [the city] needs. But we just want it to be affordable.” Champion said.

Currently, Madison, Wisconsin, which is a larger city and home to the Big Ten school University of Wisconsin-Madison, has parking meters at $2 an hour, and their parking garage rates all fall under $2 — the most expensive set at $1.80 an hour.

During the Fiscal Year 2025 budget meeting held on Jan. 22, Fruin, along with city staff, recommended a $2 increase on both meters and ramp parking. The council then decided to go against the city staff’s recommendation and raise the meters to $3. The council brought this idea about in hopes of encouraging more people to take the bus, but it has now become more burdensome for the downtown community.

To bring awareness and have rates decrease, Champion started an online petition to reduce the parking rate back to the staff recommendation. So far, the petition has received a lot of social media attention and has garnered almost 1,300 signatures.

“We [downtown Iowa City business owners] are bringing one of the only vibrant downtowns left. It’s a dying breed,” Champion said.

In an effort to work with downtown workers, the city is working with the Downtown District on some programs to hopefully aid in the stress of the new rates.

“At the Downtown District’s request, we are evaluating the addition of a reduced-price evening permit that is targeted to assist downtown employees. We will continue to offer multiple free ramp parking days such as small business Saturday with input from the businesses.” Fruin said in an email.