Fitch expects future debt service coverage to be maintained at or around current levels, assuming that the DOSP implements future rate increases in accordance with the 2009 parking ordinance and continues to manage operating expenses.
The DOSP owns/manages a total of 28,000 parking spaces, split between 10,400 on-street parking spaces, 80 surface lots and 10 parking garages.
DOSP also holds sufficient liquidity of 162 days cash on hand (DCOH), which provides additional cushion against short-term declines and expected lifecycle costs associated with older parking garages.
There were no rate increases in FY2017, but the DOSP has the authority to increase rates up to 3% annually or cumulatively without city council approval.
Through various other funds and excess revenues well above expectations in FY2017, DOSP increased the transfer to the city to $8.
Major capital improvement plans have been completed and DOSP is currently reviewing results from the recent inspection report which provided a number of recommendations to repair and seal concrete damage at various garages.
Fitch expects future debt service coverage to be maintained at current levels, assuming that DOSP implements future rate increases in accordance with the 2009 parking ordinance and continues to manage the growth in operating expenses.