Chicago plans to raise the fee to use Millennium Parks parking garages to generate additional revenue to cover the garages limited-tax backed debt.
The parking rate would go up $1 to $13 to park up to 12 hours under an ordinance introduced last week to the City Council by Mayor Richard Daley. The mayor also is seeking approval to revamp parking rates at Midway Airport and OHare International Airport.
The revenue generated from the parking garages has consistently fallen short of whats needed to cover debt service payments. Chicago has tapped reserves in the past to compensate for the shortage and had used revenue generated from a derivatives contract that has since been terminated. The city received a $13 million termination payment when it ended the swap in 2003, helping boost the level of reserves.
The garages, built under the new Millennium Park located just east of downtown near the Lake Michigan shoreline, generated only $5.5 million to cover two debt service payments totaling $8.8 million on July 1, 2004, and January 1, 2005. The city used $3.3 million from reserves to cover the rest.
The reserve account stands at about $9.2 million, according to city finance department spokeswoman Lisa Schrader. The next payment for $4 million is due July 1.
Chicago has $130 million outstanding from the 1998 parking garage issue and $33 million from a 1999 issue. The bonds carry a limited-tax pledge so the city can repay the bonds with nearly any tax revenue. However, doing so would violate Daleys pledge not to use public funds to cover any of the costs associated with the construction of Millennium Park.
