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Hamtramck discontinues its parking meters, faces $200,000 revenue shortfall

Ongoing investigations add to city hall’s challenges

HAMTRAMCK, Mich. – The city of Hamtramck has discontinued its parking meters after persistent public complaints. However, the city now faces a challenge to replace approximately $200,000 in lost annual revenue from the meters.

Background

For years, Hamtramck residents and business owners voiced frustration over the parking meter system managed by Municipal Parking Services, the same company involved in controversies elsewhere, including Royal Oak.

Many complained about how the meters were confusing, complicated and faulty.

So, the city voted last month to not renew its contract with the service. Then on July 1, the meters were officially turned off.

Impact on Residents and Businesses

Many residents and local business owners welcomed the removal of the meters.

Bassel Hamad, owner of Naya’s Jewelry on Joseph Campau Avenue, said, “It was a bad idea. We lost a lot of customers. We lost a lot of business.”

Many drivers shared similar frustrations about the cost and confusion of the parking system.

“It adds up after working all day, a 12-hour shift. Just gets a little irritating,” one driver said.

“I’ve paid more than $500 in tickets,” another driver said.

Financial Consequences and City’s Response

The city said the meters previously generated about $200,000 annually in revenue through meter fees and parking tickets. Now, the city must find ways to recover the lost funds.

Acting City Manager Aamir Ahsan said the city is actively consulting with residents and business owners through a city council subcommittee to brainstorm a new parking system that could generate the same revenue.

Meanwhile, the city is testing free parking to assess its impact. If it works, the city may decide to stick with it.

“It’s not a very bad thing for the city not to have parking revenue. Sure, in the short term, it’s a hit to our revenues, but in the long term, it can generate the required revenue we may have lost.”

What’s Next

The city said the company is expected to remove the parking meters soon.

It comes as city hall faces several other challenges, including ongoing investigations involving top officials and a lawsuit filed by a former city manager, all adding financial and administrative strain.


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