With multiple cities staring down multi-million dollar gaps heading into 2026, city officials are looking to implement ways to bolster city revenues – which, for some, is through increased regulation on parking.

[Read: Orange County Cities Scramble to Patch Budget Gaps]

Among other methods, like increased tax measures, charging for overnight parking is an increasingly popular option for revenue collection countywide.

[Read: It Might Cost More to Run a Business and Get a Hotel Room in Costa Mesa]

In the past year, Orange County has seen a surge in new and amended paid parking programs, with Fullerton approving an overnight permit parking program, after being implemented as a pilot over a year ago, and several cities introducing paid parking in downtown areas.

Orange

Following the failed sales tax measure in 2024, officials in Orange county implemented paid parking near Old Towne Orange earlier this year, in an effort to mitigate the city’s $3 million budget gap.

[Read: Orange May Roll Out Paid Parking in Old Towne Amid Budget Woes] 

The sales tax increase measure – Measure Z – would have increased sales tax from 7.75% to 8.25%, but ultimately failed at the ballot, with more than half of voters against it.

Paid parking at Orange Plaza near Old Towne will cost $1.25 to $2.00 per hour.

According to Mayor Dan Slater, the parking program is expected to bring in $900,000 the first year in revenue and then $1.2 million per year afterward.

It was introduced while the city was facing a $19 million deficit, but has since been reduced to only $2.6 million through a series of staff cuts and improvement projects.

[Read: Another OC City Looks to Paid Parking to Help Plug Budget Holes]

Fullerton

At the Nov. 18 meeting, Fullerton City Council adopted an early morning parking program with a 5-0 vote. 

Currently, parking is prohibited from 2 a.m. to 5 a.m. on any street, parking facility and highway in Fullerton.

This parking program will allow residences to purchase overnight parking permits for $50, plus additional applicable fees.

The amount of permits that can be purchased depends on the number of families per residence: single families can get one permit per licensed driver, with a limit of two permits per address. Multiple family residences can purchase one permit per unit address.

The program has been in practice for 18 months as a pilot program after being initially introduced in early 2024.

The finalization comes just a few days after Tuesday-zone street sweeping ticketing began, costing those obstructing street sweeping vehicles about $42 beginning Jan. 6, with Monday zones having been enforced since Oct. 13.

This ticketing is run SP+, a privately owned enforcement company, leading to increased ticketing, and increased city revenue.

This is an increasingly popular option among OC cities, including Stanton and Orange.

[Read: Some OC Cities Privatize Parking Enforcement For Higher Ticket Revenue]

According to the city’s 2025-26 budget, Fullerton is currently grappling with a $9.3 million gap, which is expected to swell to over $10 million by 2029-30.

The budget anticipates that the city will see $12,000 in revenue from parking permits, a decrease from 2023-2024’s $15,848.

The city has long been troubled by finances, with the city tabling immigration funds last month.

[Read: Fullerton Officials Back Away From Aiding Immigrants For Now]

City council members are also considering the idea of raising sales taxes, potentially putting the question before city voters in next year’s election. 

[Read: Another Orange County City Considers Tax Increase to Solve Budget Woes]

Placentia

Placentia City Council voted 4-0 on Dec. 2 to introduce a one year pay-to-park pilot program for two lots in the downtown area, with officials saying the move is aimed at curbing a growing lack of parking spaces. 

The pilot program will include lots on Crowther Avenue and Cameron Street, and will cost drivers $5 to park between the hours of 2 a.m. and 6 a.m.

Many of the decisions regarding cost and hours are based on similar programs offered by neighboring cities, like Fullerton, Santa Ana and Seal Beach, according to Director of Public Works Chris Tanio in a presentation made to council.

For now, the program will last one year and cost $5, but council members expressed interest in shortening the length of the pilot if successful and the potential of increasing costs to $10. 

“I think we have a bigger parking problem than Santa Ana and Fullerton do, so I think supply and demand would allow us to go up to $10,” said Councilmember Jeremy Yamaguchi at the Dec. 2 meeting.

They also discussed the potential to lengthen hours which payment would be required, potentially stretching midnight to 6 a.m., depending on the time most businesses close in the city.

Tanio stated that funds from the new program are expected to cover enforcement by the police department.

“That $5, you mentioned, would generate about $50,000 to 90,000 dollars, and that should be enough to provide for the initial enforcement our PD team needs,” Tanio said at the meeting.

According to the city’s 2025-26 budget, revenue from City Ordinance Fines from parking will increase 16.9% from the previous year.

The city is facing a $3 million budget deficit – only slightly decreased from last year’s deficit of $3.8 million.

Michelle King is a Voice of OC reporting fellow. Contact her at mcaitlin254@gmail.com.

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