LEXINGTON, Ky. — The Lexington & Fayette County Parking Authority is asking the Lexington-Fayette Urban County Council to approve significant increases to parking rates at its downtown garages to address aging infrastructure and rising operational costs.

LexPark will present its proposed fiscal year 2027 budget to the Council during a work session April 21 at 3 p.m. in the Government Center's Council Chambers. The presentation includes a request to raise hourly rates from $1 per 18 minutes (up to $12 daily) to $3 for the first 30 minutes and $4 per hour thereafter, with a new maximum daily rate of $19.

The rate increases, if approved, would affect parking at four downtown garages: Helix, Courthouse, Transit Center and 350 West Short Street (Victorian Square). The changes would take effect in September at three garages, with the Transit Center garage not implementing the new rates until January 2027.

LexPark officials argue the increases are necessary to fund critical maintenance at the aging structures. According to meeting materials, the four garages have an average age of 41 years. LexPark spent $1.3 million on structural maintenance over 12 months and has identified an additional $11 million in maintenance needs.

The authority also says it needs to invest $500,000 in technology modernization over the next few years while facing rising operating expenses for health insurance, payroll, technology subscriptions and snow removal. The proposed budget shows total revenues of $6,659,420 and operating expenses of $5,133,936 for fiscal year 2027.

A key constraint on LexPark's rate-setting authority stems from Senate Bill 75, passed in 2023, which requires City Council approval for any rate or fee increases. Previously, LexPark could adjust parking rates unilaterally, a power that drew criticism from downtown business owners during a 2023 rate hike proposal.

LexPark claims its current pricing remains significantly lower than competing downtown garages and that the proposed rates would bring the authority in line with market competitors while maintaining daily maximums below most private facilities.

The parking authority, which receives no tax dollars and operates as a self-sustaining agency, manages 1,206 on-street metered spaces and 2,200 garage spaces downtown. Council members who wish to comment should contact their representatives before the April 21 meeting.