Parking rates in Butler may go up next year to help cover the cost of the city’s new tier garage.

The city parking authority Wednesday night said it is running low on cash reserves due in part to a recent increase in its contribution for the city’s new parking garage, which is to be built near the corner of Cunningham and McKean streets.

The authority had previously agreed to contribute $500,000 to the city’s proposed garage, which will join a proposed Marriott Springhill Suites hotel in the Centre City project.

Jeff Smith, treasurer for both the city and the authority, said that figure has since increased due to restrictions on some of the authority’s available funds.

“So instead of $500,000, it looks like the authority will be paying $720,000,” Smith told the parking authority Wednesday night.

Along with paying extra money and paying for other projects, the authority would have little money left.

“The bottom line is, the authority has always had a lot in its reserves, but now that money is gone,” Smith said. “And the board needs to start building that reserve up again.”

One way to do that is through a rate increase for parking permits issued by the authority.

Chairman Jim Chiprean said the authority is not sure how much rates could go up, but said there is a possibility of an increase in January.

The authority manages the surface lots and the tier garage in the city. Its monthly permits range from $40 to $50.

The authority had previously said it expected to raise parking rates by $5 to $10 per month at all of its lots to help pay for the garage. It issues more than 450 permits per month.