Curb Management

Put Parking to Work Act

This bill gives cities a new source of revenue for neighborhood street improvements, like sidewalks, trees, and safety features, by improving the management of city-owned curbside street parking.

Curb Management

About the bill

“Paid parking can solve congestion and fund neighborhood improvements. When revenue stays local and benefits are visible, paid parking can also be politically popular.”
— Troy Sankey, Strong SacTown, July 2025

What this bill does

This bill gives cities the legal authority to create Parking Benefit Districts: defined areas where revenue from on-street parking is reinvested directly into local improvements like sidewalks, street safety enhancements, transit shelters, and lighting. Cities set the rates, manage the revenue, and decide how the money gets spent.

Why it's needed

Metered on-street parking generates real revenue, but most cities funnel it into the general fund rather than back into the neighborhoods where it was collected. Parking Benefit Districts change that by ensuring that revenues generated by local metered parking remain in the “district” where the revenue was collected.

Frequently asked questions

What does this bill actually do?

This bill would allow cities to create Parking Benefit Districts, areas where parking meter revenue can be reinvested locally into sidewalk improvements and other public infrastructure.

Authorizes cities to create Parking Benefit Districts. Local governments can designate areas where on-street parking revenue is collected and reinvested locally, rather than flowing into the general fund.
Lets neighborhoods set their own goals. Each district requires a plan outlining goals, methods, and metrics of success, tailored to the community’s existing planning priorities.
Allows flexible use of revenue. Funds can pay for sidewalks, bike lanes, transit shelters, street trees, lighting, public events, transit subsidies for local workers, and other neighborhood improvements.
Keeps cities in control. Districts can be managed by the city or delegated to a business improvement district or Main Street organization.
Allows pilots. Cities can establish a district on a trial basis before committing to a permanent program.
Requires transparency. Cities must maintain public financial records for each district and conduct a performance review at least every five years.
Protects accessibility. Payment systems must meet federal and state accessibility requirements.

Why would charging for parking help anyone?

Curbside, on-street parking downtown and on commercial main streets is some of the most valuable real estate owned by a city. On-street parking is naturally limited by available space on the street; by failing to charge for this space, many cities create a “tragedy of the commons” where parking is used not by people conducting business in the area, but rather by residents and workers who store their cars, often for days or weeks at a time, for free.

Charging for parking, in increments of minutes or hours, helps correct this imbalance by incentivizing those who park in these spaces to vacate the spot when they have completed their visit. By increasing parking spot turnover, business districts end up with more customers and higher sales; cities end up with more parking revenue, and more tax revenue.
Metered parking also encourages residents to choose modes other than cars for their trips in order to save money, or to increase the amount of time they want to remain in a particular district.

While not a necessary part of Parking Benefit Districts, charging a variable rate for parking so that there are always a few spots available ensures that people can consistently find a spot on the street when they need to. That means less circling, less congestion, and a street that is easier to get to whether you are arriving by car, bike, or bus.
Revenue from Parking Benefit Districts can be reinvested in sidewalks, transit shelters, and street trees that make these neighborhoods more inviting for everyone.

Why can’t cities just use general fund revenue for improvements instead of charging for parking?

They can, and they should. There is nothing stopping cities from using their existing revenue for making improvements to transportation options, and cities should be encouraged to bolster their investments in neighborhood quality.

However, while Parking Benefit Districts could represent a new revenue source, the money raised by Parking Benefit Districts is not necessarily the reason cities would want to implement them. Charging for parking helps change behavior in ways that make it easier for others to access high-demand places; by restricting the revenues from Parking Benefit Districts to funding improvements in the immediate area, local business owners and residents can see exactly where their money is going and trust that the district is working for them.

Why does this need to be state law instead of a local ordinance?

This bill does not explicitly create any Parking Benefit Districts, but would allow cities to create them. As Parking Benefit Districts are a new type of policy to many communities, the state government’s explicit legalization of Parking Benefit Districts not only simplifies the process, but it also brings attention to the opportunities it affords to local governments. Ultimately, by providing a clear pathway for funding allocation into local improvements, Parking Benefit Districts make it easier for cities to manage parking where demand is highest, while ensuring that any revenue stays local and delivers visible benefits to the community.

The Legislation

Full model legislation text

Clean version

Annotated

Section 1. Title.

This Act shall be known and may be cited as the “Parking Benefit District Authorization Act.”

Section 2. Definitions.

(a) “Parking Space” means a portion of publicly owned or managed paved surface approximately twenty (20) feet in length that physically and legally accommodates a vehicle.

(b) “Vehicle” means any device in, upon, or by which any person or property is or may be transported upon a public street, except such devices as are used exclusively upon stationary rails or tracks and such devices as are propelled exclusively by human power.

(c) “Parked Vehicle” means the standing of a vehicle, whether occupied or not, including those standing while engaged in loading or unloading or other short-term curb use, otherwise than temporarily in compliance with directions of a police officer or traffic control device.

(d) “Parking Fee” means a price charged to a vehicle owner for occupying a parking space for a period of time.

(e) “Market Rate Parking Fee” means the price of parking that targets a specific occupancy of a given block, typically targeting 85%. The ‘market rate’ can vary throughout a day, as the desirability of the spot at a given time determines it.

(f) “Parking Benefit District” (PBD) means a parking management tool where parking revenue within a defined area is returned, in whole or in part, to said district. They are meant to address parking challenges presented in congested inner neighborhoods of a municipality, while striving to maintain livability and business vitality in those designated parking districts.

(g) “Net Parking Revenue” means the monies collected from municipal parking fees after subtracting the cost of operations, maintenance, and loan servicing for the collection system. These sources may include, but are not limited to, on-street meters, pay stations, residential permits, mobile applications, and municipal lots.

(h) “Pilot” means a probationary period meant to test the feasibility of a PBD.

This section defines the core parking-management terms used throughout the act. (Derived from Massachusetts General Laws Chapter 40, § 22A1/2, added by Chapter 218 of the Acts of 2016 & Metropolitan Area Council’s Parking Benefit Districts guidance)

Section 3. Legislative Findings and Purpose.

The Legislature finds that the proper management of on-street parking is a matter of statewide concern and that PBDs serve the public interest by reducing congestion, supporting local businesses, and improving public infrastructure. This Act authorizes municipalities to create and manage PBDs in order to achieve these goals.

This section states the public purpose for authorizing Parking Benefit Districts: better parking management, reduced congestion, support for local business districts, and reinvestment in public improvements. (Follows Massachusetts’ 2016 parking reforms, which amended Chapter 40, § 22A)

Section 4. Establishment and Study

(a) A municipality may establish one or more PBDs, defined geographically and subject to oversight as provided in this Act. The PBD’s jurisdiction may include, but is not limited to, on-street meters, pay stations, permit parking programs, mobile applications, and municipal lots.

(b) A PBD may be proposed to the local governing body by neighborhood groups, residents, business groups, the municipality itself, or anyone who is considered a stakeholder in the area. Municipalities may define the proposal process to suit their planning objectives.

(c) A plan, including goals, methods, and metrics of success for said PBD, shall be included as part of the proposal. This plan shall align with existing planning goals within the municipality. Upon adoption of the PBD, its plan shall be incorporated as part of the statute.

(d) A district may be established as a pilot for a defined period with the opportunity for continuation if it meets the municipality’s stated goals.

(e) A municipality may conduct a parking study before or after establishing a PBD to assess the existing parking inventory and forecast the effects of potential changes. This study may be conducted internally or by a consultant and made easier by using technology such as parking occupancy sensors.

This section lets cities create Parking Benefit Districts, define where they are placed, accept proposals from local stakeholders, require a district plan, and begin with a pilot if desired. The pilot structure is included as a model legislation implementation tool so municipalities can test district boundaries, rate design, and revenue uses before permanent adoption. (Massachusetts General Laws Chapter 40, § 22A1/2)

Section 5. Management and Oversight.

(a) A PBD may be managed by a municipality or by a body designated by the municipality, which may include, but is not limited to, a business improvement district or a Main Street organization.

(b) A municipality or a designated management body may hire staff deemed necessary for the operations and management of a PBD.

(c) The city shall maintain and keep financial records for each such PBD fund, showing the source and amount of all monies collected, earned, and received by the fund, and each expenditure from such fund, per normal city accounting practices, and at the end of each fiscal year shall prepare a report on each such fund showing such information. The records of such funds shall be open to public inspection in the same manner as other financial records of the city.

This section provides for the creation and management of Parking Benefit Districts and requires cities transparently report and account for funds raised by Parking Benefit Districts. (Follows Montana Code Title 7. Chapter 14. Part 47 and Massachusetts General Laws chapter 40, § 22A1/2)

Section 6. Use of Parking Revenue.

(a) The municipality shall set a percentage of the net parking revenue generated within a given PBD to be reinvested into that district to fund public improvements. This percentage may vary between PBDs within the same municipality.

(b) During the initial planning and at performance reviews outlined in Section 11, the municipality or its designated management body shall determine uses of funds that align with the goals of the PBD’s statute and may adjust the percentage to be reinvested in the district.

(c) Eligible uses of these funds include, but are not limited to:
(1) Maintenance of existing parking facilities;
(2) Operational costs deemed necessary to administer the PBD, including debt service and staff salaries;
(3) Bike lane construction and maintenance;
(4) Sidewalk construction or improvements;
(5) Street beautification projects;
(6) Transit shelters and street furniture;
(7) Transit wallets or subsidies for local employees and/or residents;
(8) Parking enforcement;
(9) Marketing and branding campaigns;
(10) Public events such as festivals;
(11) Upkeep of public spaces such as parks or gardens;
(12) Signage identifying improvements funded by parking revenue.

(d) A municipality may establish a special revenue fund to hold PBD revenue.

(e) Any yield on such accounting fund into which the fees are deposited shall accrue to that fund and shall be used for the purposes specified for such fund.

This section ensures that funding raised in the district goes to specific local area improvements, rather than a city’s general fund, and district-related purposes, rather than a city’s general fund.

Section 7. Rate Setting and Fee Collection.

(a) A municipality may set parking rates within the PBD to meet parking management goals. If the municipality has delegated management of the district to an external body, it may set the parking rates per said body’s recommendations.

(b) Rates may vary according to time of day, demand, and location to achieve a target occupancy rate.

(d) A municipality may designate smart loading zones where each zone shall be accompanied by signage advising the public of the presence of the sensor, camera, or software technology monitoring the smart loading zone. Municipalities may dissolve smart loading zones.

(i) A municipality may apply different parking fees and set rates for vehicles parked at a smart loading zone and vehicles parked at areas not designated as a smart loading zone.

(ii) Fees and rates for parking at designated smart loading zones must be displayed clearly and accessibly in plain english to be read by those using the zone.

(iii) A municipality may set a minimum and maximum durations of time that vehicles are permitted to dwell at designated smart loading zones before being fined.

(iv) Municipalities must maintain a publicly accessible map of active Smart Loading Zones that can be accessed on the web.

This section allows the city to set parking rates and fees in Parking Benefit Districts and at the curb in order to meet their specific goals, with flexibility to vary charges according to demand, time of day, and location to keep a set number of spaces occupied.

Section 8. Accessibility.

(a) Municipalities shall take measures to ensure that the parking payment system meets the accessibility requirements legally applicable to the area in which it operates.

(b) When available in the US, municipalities with mobile payment applications may utilize an open market system that allows users to choose a vendor to process their parking payment.

This section directs municipalities to ensure that Parking Benefit Districts’ payment platforms meet applicable accessibility requirements.

Section 9. Enforcement.

Parking regulations within a PBD may be enforced through administrative citation or civil penalty, as authorized by state or local enabling legislation.

This section clarifies that district parking rules may be enforced through the municipality’s ordinary civil enforcement rules.

Section 10. Financing.

(a) A municipality may utilize other financing sources to fund the initial capital, operations, and maintenance costs of establishing a PBD or the place-based improvements for which the PBD’s revenue has been earmarked.

(b) A municipality may apply for a state, federal, or private grant to support the establishment and/or operations of a PBD.

This section gives municipalities flexibility to finance startup costs and capital improvements before they implement a Parking Benefit District, and to support its initial operations and related improvements.

Section 11. Preemptive District Designation.

A municipality or its designated management body may establish a PBD even if it does not intend to charge parking fees in the immediate future, to allow for rapid implementation when needed.

This section allows municipalities to establish the district and its governance structure before beginning paid parking.

Section 12. Review and Accountability.

(a) Each PBD shall be subject to a performance review at least every five (5) years to assess outcomes against stated goals and to determine whether to continue, modify, or dissolve the district. Metrics of success may be, but are not limited to, achieving targeted parking occupancy levels within the district or meeting revenue objectives after costs.

(b) The statute that establishes the PBD shall be amended to reflect the results of said performance review.

This section requires periodic review so that districts continue only if it is meeting its stated goals, and allows them to be continued, modified, or dissolved based on that review.

Copy Bill Text

Tips for introducing in your state

Local business owners, property owners, and Main Street organizations are your most credible messengers.

Find one who has seen a Parking Benefit District work and let them make the case.

Keep the revenue local.

If parking revenue flows into the general fund, the connection between paying for parking and visible neighborhood improvements disappears, and so does public support.

Come with local examples.

Find a Parking Benefit District that looks like your state and lead with it. A familiar example is more persuasive than a national trend.

Bring in practitioners.

Local planners, transportation directors, and business improvement district managers carry more weight than advocates. Legislators want to hear from the people who will actually use this law.

Use visuals.

Contrast empty parking lots with vibrant streetscapes. Show people what the revenue could fund: new sidewalks, street trees, transit shelters. People respond to what they can see and feel.

Redirect hypotheticals to real impacts.

When opponents raise what-if concerns, bring the conversation back to what is happening right now: the revenue neighborhoods are leaving on the table, the sidewalks that need repair, the improvements that could already be funded.

Check out the Pro-Housing Messaging Framework to help you craft your messages!

Lessons from other states

Parking Benefit Districts have been created all over the country, from Texas to Ohio, and from Missouri to California. They have raised millions of dollars for local improvements in downtowns, all while helping to manage parking availability and demand. The Federal Highway Administration has compiled a list of example cities that have implemented Parking Benefit Districts, illustrating the range of cities using these districts today.

Parking Benefit Districts work to shift people’s behavior around parking, but they need to both solve parking problems for the community and deliver additional value where they are enacted. People, especially local business owners, do not like paying for things that they do not feel provides them a benefit. This is why Parking Benefit Districts must deliver demonstrable local improvements where they are implemented.

Value Capture Techniques in Practice: Parking Benefit Districts, US Department of Transportation
Parking Benefit Districts: Guide for Activists, Parking Reform Network
Parking Benefit District & Shared Parking Implementation, Nelson \ Nygaard
Parking Management Comprehensive Implementation Guide, Victoria Transport Policy Institute, Todd Littman

Massachusetts — enacted 2016

Massachusetts passed House Bill 4565 in 2016, which codified the practice of establishing parking benefit districts as part of omnibus legislation modernizing local government fiscal powers. It also included reforms to contract procurement, retirement benefits oversight, and tax increment financing — a broader term for the revenue model that Parking Benefit Districts implement with parking meters. The bill established Parking Benefit Districts as a standard financing tool for local governments to use revenue from parking meters for operational and administrative costs, as well as transit operations and street safety infrastructure.

Parking Benefit Districts, Metropolitan Area Planning Council (2017)

Kansas City, Missouri — local example

Kansas City offers a useful example of what Parking Benefit Districts can look like in practice. The city's Playbook KC curb management plan laid the groundwork for using parking revenue to fund neighborhood improvements.

"The new ordinance opens up the opportunity for more projects, especially more small businesses, without the burden of arbitrary parking minimums established by the city." — Council Member Eric Bunch, KCUR, May 2026