ORLANDO, Fla. — People parking on Orlando’s public streets and in city-owned parking garages will soon see the cost of their stay increase thanks to a rate hike approved by city leaders this week.

During its May 11 regular meeting, the Orlando City Council approved a plan to increase parking rates for the first time since 2009 after a study found that parking costs in the city are “significantly below market value” when compared to comparable municipalities.

Hourly parking on the street and in city-owned garages will increase by $1 per hour starting in the 2026/2027 fiscal year, which has caused some business owners and their staff — especially in downtown Orlando — to worry about how the additional cost could impact their bottom lines.

At Motorworks Brewing, bartender Kristina Nicholls said business has been strong since the business opened in 2020.

“We’ve done very well over the years,” Nicholls said. “For the most part, surprisingly enough, we actually get a lot of out-of-towners.”

The business relies heavily on event-based business, and Nicholls said the lack of parking in the area has always been a problem. With the upcoming rate increase, she worries the cost might keep customers away.

During a workshop in April, city leaders discussed the current rate structure and the new proposed rates based on progressive zoning pricing. A fiscal impact statement attached to the rate increase proposal — which was approved as part of the consent agenda portion of the May 11 meeting — noted that the rate hike was “essential.”

“As the City’s parking system operates as a self-supporting enterprise fund without General Fund support, these adjustments are essential to maintaining financial sustainability and reducing the overall tax burden on residents,” the statement said. “Without these adjustments, the system may face challenges in meeting operational goals and supporting the needs of the downtown corridor in alignment with City initiatives.”

The fiscal impact statement estimated that the fee increase would raise an additional $5.5 million per year.

Urban Stylez has been open in Orlando for 18 years, and 10 of those have been in the downtown area. While the business does have some parking behind the building, owner Charlie Lopez said just like most other businesses in the area, a lot of his customers park on the street. 

“I mean yeah, parking really sucks out here,” he said. “But I think it’s like that in a lot of cities and downtown cities. So, you know, you got to take the good with the bad.”

While Lopez believes his shop’s work speaks for itself, he does worry that the parking hike may convince some customers to go elsewhere.

“I think people are going to find a way if they’re happy with the business and the service, but yeah, being limited may lead to people choosing other options, to other barbershops that have parking,” Lopez said.

While the fee increase was the only parking change to be fully approved, the Orlando City Council did also approve an ordinance on first reading during the May 11 meeting that will, if passed, make some changes to when people will have to pay to park.

Currently, on-street parking is paid from 8 a.m. to 6 p.m. daily, but the ordinance, which was unanimously approved, would add two hours of paid parking by extending the end time to 8 p.m.

Free parking on Sundays and city holidays would not change — the ordinance would actually add two city holidays to the list, making the day after Thanksgiving and Christmas Eve both free parking days. It would also change some of the fees charged to drivers for parking violations.

That ordinance still needs to be approved on second reading at a future City Council meeting before it goes into effect.

While the city argues that the changes approved on May 11 simply make Orlando’s parking fees comparable to other cities, Nicholls said that all of the changes downtown are making her wonder where the city stands when it comes to local businesses.

“We’ve already had the city impose so many ordinances, so many restrictions and it’s just insult to injury,” Nicholls said. “And it just makes those of us that are still here question if the city really wants businesses.”

The parking changes also include increases to the cost of monthly parking passes and event parking.

The parking rate schedule attached to the City Council’s May 11 meeting agenda notes that the approved fees “represent maximum allowable charges; actual rates may be lower.”