Park downtown for only $75.53! (Daily)

Bozeman’s new parking garage is now open. How many people use it? Is it a good deal? Who pays the cost of parking? Who benefits?

parking garage

parking garage

Bozeman’s new parking garage is now open. How many people use it? Is it a good deal? Who pays the cost of parking? Who benefits?

On April 22, 2009, at 4:45 p.m., there were 27 regular parkers and 18 vehicles in the $1 per day area, the “permit” parking area. If we assume that the 27 cars were there all day, paying $.50 per hour, or $4.00 per day,  total revenue was $126.00 for April 22.

What is the cost? The capital cost, the cost of financing the building is $3,050 per day, 365 days per year, including Sundays when few parkers will visit. Operating costs could run as high as $500.00 per day. On April 22nd there were three employees at work. Other days there were fewer. Let’s use an employee cost of $300 per day and other operating costs such as maintenance on the computer system, lights, cleaning, security, accounting, repairs and maintenance, promotion, insurance, and depreciation that total $200, for a total operating cost dailyof $500.00.

Add capital and operating costs for a total of $3,550 daily.

On April 22nd revenue was $126.00. The loss was $3,424. For one day.

If each parker was paying their full cost for parking on April 22nd, the charge would have been $3,550/ 47, or $75.53. Any takers? That would be an curious promotion: “Park downtown for only $75.53!”

So if parkers are  paying $4.00, not $75.53, who pays the other $71.53? Taypayers. Taxpayers might be pardoned for objecting.

On April 22, 2009, at 4:45 p.m., there were 27 regular parkers and 18 vehicles in the $1 per day area, the “permit” parking area. If we assume that the 27 cars were there all day, paying $.50 per hour, or $4.00 per day,  total revenue was $126.00 for April 22.

What is the cost? The capital cost, the cost of financing the building is $3,050 per day, 365 days per year, including Sundays when few parkers will visit. Operating costs could run as high as $500.00 per day. On April 22nd there were three employees at work. Other days there were fewer. Let’s use an employee cost of $300 per day and other operating costs such as maintenance on the computer system, lights, cleaning, security, accounting, repairs and maintenance, promotion, insurance, and depreciation that total $200, for a total operating cost dailyof $500.00.

Add capital and operating costs for a total of $3,550 daily.

On April 22nd revenue was $126.00. The loss was $3,424. For one day.

If each parker was paying their full cost for parking on April 22nd, the charge would have been $3,550/ 47, or $75.53. Any takers? That would be an curious promotion: “Park downtown for only $75.53!”

So if parkers are  paying $4.00, not $75.53, who pays the other $71.53? Taypayers. Taxpayers might be pardoned for objecting.

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One Response

  1. I love how you are able to figure this stuff out. By the way, why is everything written twice on this post?

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