Property tax increases are politically costly and slow to implement. Most municipal finance directors are instead looking at operational and asset-based revenue tools that don't always require a ballot measure or a council fight. Below are five of the most commonly used strategies, roughly ordered by how quickly they can be implemented.
1How Much Revenue Do Cities Lose to Outdated Parking Equipment?
Parking is one of the few municipal assets that generates revenue every single day it's in use. Cities that still rely on coin-only meters or manual permit tracking are leaving money on the table in two ways: uncollected revenue from broken or outdated equipment, and lost enforcement efficiency. Upgrading to pay stations with credit card and app-based payment options typically increases collected revenue by making it easier to pay — and harder to avoid paying.
This is a lower-lift revenue lever than most people assume, since equipment upgrades can be financed through vendor programs rather than capital budgets.
2What City-Owned Assets Can Generate Revenue Without New Taxes?
- Leasing rooftop or tower space to wireless carriers for cell equipment
- Renting out municipal lots for events, filming, or overflow commercial parking
- Solar leasing on building roofs
- Advertising rights on bus shelters, or digital kiosks
3How Do Cities Set and Update Permit and Licensing Fees?
Many permit, licensing, and inspection fees haven't been updated in a decade or more and no longer cover the municipality's cost to deliver the service. A fee study that aligns charges (building permits, special event permits, right-of-way permits) with current costs is one of the most defensible ways to raise revenue, since it's framed as cost recovery rather than a new tax.
4What Federal and State Grants Are Available?
Between transportation, EV infrastructure, and downtown revitalization programs, there is more grant funding available to municipalities right now than most staff have time to track down. Dedicating even part-time staff capacity to grant research and applications often pays for itself many times over.
5How Does Tax Increment Financing Work for Cities?
TIF districts let municipalities capture the incremental property tax revenue generated by new development in a defined area and reinvest it in that area's infrastructure. Done well, this funds improvements without touching the general fund.
Frequently Asked Questions
Which of these generates revenue the fastest?
Parking modernization and fee restructuring tend to show results within one to two budget cycles, since both work with revenue streams the municipality often already collects. Grants and TIF districts take longer to stand up but can generate significantly larger sums over time.
Does upgrading parking equipment really move the needle?
For municipalities still running older or cash-only equipment, yes — often meaningfully. The revenue lift usually comes from a combination of reduced payment friction, better enforcement data, and lower maintenance costs on aging hardware. TPS works with municipal clients across Illinois and Florida on exactly this kind of upgrade, and cost-recovery timelines are frequently shorter than Finance teams expect.
Wondering what a parking upgrade would return for your city?
TPS works with municipal clients across Illinois and Florida on exactly this kind of modernization — and cost-recovery timelines are frequently shorter than finance teams expect.