By Jorge Casuso
August 18, 2025 -- The City Council last Tuesday restructured the rates at its Downtown parking structures and hiked prices for meters and lots citywide, generating more than $8 million a year for the cash-strapped local government.
The rate hikes come after voters approved a total of five tax measures in 2022 and 2024, including one that raised the rates at non-City parking lots and structures.
The new rate changes include reducing the free parking period in the eight Downtown Structures from 90 to 30 minutes, a move that met with stiff resident opposition.
Hourly rates at parking meters in the Beach and Downtown areas will increase from $2.50 to $3, while rates at all other meters will increase from $1.25 to $1.50.
Hourly rates for short term Beach lots will double from $1 to $2 in the winter and triple to $3 in the summer, while flat-rate Beach parking will increase by as much as 33 percent, depending on location.
"Over the past seven years, the Consumer Price Index rose by approximately 25 percent, increasing the cost of providing parking services, yet parking rates have largely remained unchanged," City staff wrote in a report to the Council.
Parking generates $51.4 million a year in revenue, with $36.1 million going to the General Fund and the remaining $15.3 million going to the Beach and Pier Funds, according to current budget projections.
The City’s 42 parking facilities, which contain 13,000 parking spaces; 5,800 on-street metered parking spaces, and thousands more non-metered spaces that collect revenue from permits account for 7.7 percent of the City's general fund.
"This additional revenue will be used to cover many of the City’s expenses, including supporting upgrades, repairs, and maintenance of the city’s 42 parking facilities, and advancing investments in Clean Streets and Safe Neighborhoods," staff wrote.
Some rates at the eight Downtown parking structures will be reduced by as much as 42 percent, while monthly parking passes will be reduced by 20 percent, City officials said.
But it was the potential loss of the 90-minute grace period that prompted many of the nearly 50 letters, emails and text messages sent to the Council.
"If you want to increase business in the downtown area, this is not the right way to do it," one long-time resident wrote. "Beverly Hills had 2 hour free parking in public lots, clean streets and few empty businesses.
"There are now few reasons to go downtown SM with so many businesses closed and closing. This just adds another reason to do my business elsewhere."
Another resident wrote, "I think the loss in business taxes from decreased revenue will render this a financial mistake."
Parking data show that Santa Monica residents stayed an average of 96 minutes at the Downtown structures, compared to 114 minutes for non-residents.
City officials note that "validations will continue to be available for purchase for downtown businesses and employee validations for $6 for 6 hours and $9 for 12 hours will continue to be available for downtown employees."
In addition to the Downtown and Beach rate changes, hourly rates in the Main Street parking lots will increase from $1.25 to $1.50 in the winter. In the summer, the hourly rates will be $2 Monday through Thursday and $2.50 Friday through Sunday.
Meanwhile, hourly rates in Mid-City parking lots will increase from $1 to $1.25.
Surface lot parking for ADA placard holders will be 50 percent of the posted rate, while ADA placard parking at meters will remain free.
It will take time for some of the new parking rates to kick in, since the beach and Downtown are in the coastal zone and require approval by the California Coastal Commission (CCC).
