The Seattle City Council on Monday voted to increase parking meter rates in Ballard by 50-cents, bringing the hourly rate to $2.

The Council also increased rates downtown by $1, increasing the hourly rate to $2.50.

This increase is said to help balance the city's 2009-2010 budget.

The news has come as an unwelcome surprise to many Ballard business owners and residents.

The Ballard Chamber of Commerce and some businesses worry that the rate will keep people from wanting to shop in downtown Ballard, pushed away to free parking in malls and shopping centers.

One Council member voted against the measure after earlier indicating she supported it, but she said she was not worried about the rate in Ballard and other neighborhoods.

"I'm voting against the increase because I felt comfortable with downtown parking increasing to 75 cents along with the increase in other neighborhoods," said Council member Jan Drago. "However I don't feel comfortable with downtown rates moving to one dollar more. This will discourage downtown shopping and impacts many small businesses."

Also in opposition of the parking increase, Council member Richard McIver found the increase to be unfair especially to neighborhoods that do not have parking meters and would not benefit to the increase.

A view expressed in Ballard is that a rate hike is a "slap in the face" and an inappropriate way to finance the city budget.

Proposed by Mayor Greg Nickels, the 50-cent increase in street parking rates would go into the city's general fund, to pay for social services and public safety.

The increase originally would have been split up into three tiers but $19 million was trimmed off of the budget because the initial estimate for next year's budget income has been radically lowered.

"This was an expected shortfall due to the economic downturn," said a representative for Councilman Bruce Harrell.

The change in revenue forecast means there are now a couple of proposals for the parking rate increase.

"There are two proposals, the mayor's original 50-cent increase and a 75-cent or dollar increase to the original $1.50 that all parking meters have today," said Jodie Vice in Council member Jan Drago's office. "Now, with the downfall, the executive and most Council members are agreeing on the dollar increase, which will not occur in all neighborhoods due to the tier structure."

So, now the city is considering a higher rate increase, Vice said.

The first tier would be a dollar increase to $2.50 an hour in neighborhoods such as Pioneer Square, financial district, retail district, waterfront, Belltown, International District and the Denny Triangle.

The second tier would incur a 50-cent increase to $2 an hour along Pike, Pine, First Hill, Broadway, Uptown, Ballard, South Lake Union and the University District.

Areas in the third tier will not see a change in meter prices and will stay at the current $1.50 an hour price range. These areas would be 12th Avenue, Providence, Greenlake, Roosevelt, Westlake Avenue North and the proposed Fremont parking rate, where the second draft on parking charges there is still under study. (See "Stop lying to Fremont" on Page 6).

"The reason we set parking meter rates is, in part, to manage the use of on street space," said Ben Noble, director of city Council central staff. "For instance, in downtown, you can barely find a parking meter space. Instead people are having to park and pay commercial lots."

Noble recognizes that there is a potential that the increase in parking meter prices will be a disadvantage but he says there is a potential that more people will find more places to park with the increase.

"At the moment on-street parking is underpriced and is not being utilized to its potential and purpose. People who are filling up these spots are people that work and spend about 4 to 6 hours downtown. Instead of parking there for two hours which is the intent of the meters, these people keep feeding the meters," he said.

The city sees that it's a decision that says that current rates do not manage on street parking particularly well, said Noble.

"Raising parking meter rates will help turnover and provide more spaces for shoppers in the long run," said Council member Jan Drago. "Change is never easy, but I don't think this will hurt our neighborhood business districts."

That is not the opinion of business in Ballard and Fremont.

Business owners and residents of Ballard share sentiments with the Fremont neighborhood, which is fighting against the installation of parking meters.

"I realize the budget is an issue and there are a lot of things that need to be paid for, but I find it disconcerting that they're trying to pay for things by hurting small businesses," said Beth Miller of the Ballard Chamber of Commerce. "We struggle as a neighborhood business district and often the city doesn't pay for our chambers and programs. And for them to come through to charge us more on parking is really a slap in the face."

Miller said the increase in parking meter rates is an inappropriate way to raise money for the city's budget.

Since the news of the increase in parking meter rates, the Ballard Chamber of Commerce sent out a letter to the community to let people know how the increase will affect the Ballard business district. They have also sent a letter to the City Council asking it to reconsider the recommendation.

"If the proposed parking revenue increases would directly benefit Ballard, the community might look at this proposal differently," Miller said in the letter to the Council. "But these revenues go into the general fund and we see no specific benefit to our neighborhood. Instead, we are given one more worry about the survival of our business district... We are often told that Seattle celebrates and is proud of its unique neighborhood business districts. Please reinforce this message and do not put further impediments in the way of the small businesses in these districts. Please do not increase the street parking rates in Ballard."

Allison Espiritu may be reached at 783-1244 or allisone@robinsonnews.com.