Butler City Council plans to invite a representative from Pango, the operator of a mobile phone app that pays for parking, to present a plan to expand its service in the city as a possible way to raise money to repair parking garages and lots.

Council discussed numerous ways to raise the estimated $2 million needed to upgrade parking facilities during a special meeting Thursday morning.

A report detailing the work needed is being reviewed by city engineer Joe Gray. Council members said he is preparing a list prioritizing the most critical projects.

In addition to asking parking manager Jim Chiprean to invite Pango to another meeting, which has not yet been scheduled, council members discussed charging to park on Main Street, raising parking rates, borrowing money to pay for the work, replacing parking meters with payment kiosks, offering long-term parking permits and selling one of the garages.

Councilman Kenny Bonus, director of streets and public improvements, said raising revenue and decreasing expenses are good ideas, but they won't have long-term impacts unless council stops transferring money from the parking fund to the general fund to cover operating expenses.

“Where we're failing is on the city side,” Bonus said, arguing the city could pay for at least some of the work from the parking fund if the money wasn't transferred.

The 2020 budget calls for a $405,000 transfer from the parking fund to the general fund.

Total revenue in the parking fund budget is $977,900, but the closing of businesses due to the COVID-19 pandemic will result in less revenue, Chiprean said.

The parking fund has $42,000 allocated for repairs, of which only $1,000 has been spent, according to Chiprean.

He went on to explain that borrowing money through a loan or bond issue is another option, adding that banks are offering zero percent interest loans.

Councilman Mike Walter said council should consider charging to park on Main Street and installing kiosks for payment.

Currently, people can park on Main Street for two hours for free. Walter suggested reducing that time to a half-hour and possibly raising parking rates. He pointed out a 2012 study revealed the city would take in $100,000 a year if it charged for Main Street parking.

According to Walter, council voted years ago under a different administration to charge for Main Street parking, but never acted on the resolution. He added that no additional action from council would be needed to make it happen.

Councilman Bob Dandoy said he's not prepared to recommend raising parking rates or charging for Main Street parking, and wants to see revenue projections before council considers either one.

He suggested looking for a way to allow free parking on Main Street for businesses in which customers are “in and out” without spending much time inside and offering long-term permits. A small parking rate increase should also be considered, Dandoy said.

Long-term leases would include small discounts, but it “gives us money now,” Dandoy said.

Mayor Ben Smith said $1.7 million would be generated if all current permit holders buy five-year permits at current prices.

However, if council raises the permit cost during those five years, the extended permit holders wouldn't have to pay the higher price, he said.

Walter said he likes the idea of selling one parking asset, possibly the tier garage, through a public-private partnership in which the city would have some input or control of parking rates.

The tier garage has been renovated three times since it was built in 1973, but needs another renovation, Chiprean said.

He said Pango service could be expanded to all parking areas. Currently, Pango is available at the tier garage and the McKean Street garage.

Dandoy said the city would get more revenue from the use of Pango and kiosks than it does from parking meters.

When someone leaves a metered parking space with time left on the meter, the next person who pulls in gets that time for free, but Pango and kiosk fees begin when someone parks, he explained.

Removing parking meters was brought up, but Dandoy said some meters could be left in place for older residents who don't use phone apps.

Chiprean said Pango charges fees to customers, but it doesn't charge the city and the city receives the full amount of its fees from Pango customers.

He said the city would receive a “scrap” metal price if it sold the meters, which are old, but work well.

Walter said the city should talk to parking app providers other than Pango for comparison purposes.

Chiprean said Pango could make a presentation quickly because it already has a relationship with the city, but it would take longer to arrange a presentation from another company.

In a 3-2 vote in December, council turned down an offer from a company, PFS VIII, to buy the city's three parking garages, seven lots and street meters for $10 million and an annual payment of 12 percent of gross parking revenues.

Walter, Bonus and Fred Reese voted against the motion. Jeff Smith and Ben Smith voted in favor. Reese was serving an appointed term following the resignation of former Councilman Corey Roche.