Iowa City Council members voted 6-1 Tuesday to reduce parking meter rates in downtown Iowa City following backlash from local residents and businesses. 

The City Council approved the first consideration of an ordinance to reduce parking meter rates in key downtown areas from $3.00 per hour to $2.25 per hour following complaints from residents and business owners who were worried it would affect their ability to attract customers. 

The council agreed, with only Councilor Andrew Dunn dissenting, to pass the new ordinance, which will require two more readings at future City Council meetings before it becomes law. 

According to an analysis by city staff, the change in rates could cost the city up to $300,000 in lost revenues from parking. 

Iowa City Mayor Bruce Teague said he was thankful for the conversations surrounding the topic and the amount of public input it has received. 

“There’s been a lot of concerns surrounding this, and I do understand the challenge of a financial part on many individuals that come downtown,” Teague said. 

Dunn was the only member of the council to vote against the proposal, and he expressed his concern about revising the rates due to budget constraints the city is feeling. 

“We just got rid of $300,000 worth of potential revenue for the city,” Dunn said. “One of the things that that revenue can go towards is our public transportation —our maintenance of our parking ramps.”

RELATED: IC considers decreasing downtown parking meter rates after community pushback

​​Betsy Potter, executive director of the Iowa City Downtown District, shared her gratitude for the council’s reconsideration of the parking permit rates. City Staff worked with the downtown district to formulate the plan to lower rates following business owners’ concerns. 

“We continue to hear from our businesses, our partners, community members, and visitors on this issue, and we really think that this further will enhance downtown Iowa City in making it more welcoming and accessible for both residents and members,” Potter said, addressing council members Tuesday evening.  

City to create evening, weekend parking permits 

In addition to lowering parking rates, the city will create a new parking permit program for evenings and weekends that will be 75 percent of the cost of full-time parking permits. 

The new permit will allow permit holders to park from 4 p.m. to 9 a.m. during the week and all day on Saturday and Sunday in an effort to offer permits that help businesses like bars and restaurants. 

The permits will cost $67.50 per month for parking ramps and $52.50 per month for city-managed parking lots.