Parking on Toronto streets could cost drivers more next year.

The Toronto Parking Authority is proposing a 25-cent increase for about 20,300 parking spaces.

Recommended increase: stated in the agency’s budget reportIt will be first evaluated by the Audit and Risk Management Committee this week.

Currently, hourly rates for on-street parking range from a minimum of $1.50 to a maximum of $6.50.

If approved by the city council, drivers would be able to pay up to $6.75 per hour to park in high-demand areas. TPA plans to maintain a $1.50 hourly minimum wage at 1,323 parking spots.

TPA said the proposed increase is based on several factors, including inflation, price elasticity and rates in other North American cities.

The city agency noted in its report that Toronto’s street hourly wages remain quite low compared to other cities such as Vancouver (up to $11 per hour), Chicago ($9.35 per hour) and New York City ($9 per hour).

“However, continued pressure on TPA’s paid on-street parking inventory – particularly in high-density areas – further supports the need to increase rates to ensure a steady turnover in parking activity,” the report said.

“At the same time, rising rates recognize the cost of congestion in the city and the premium that must be placed on the value of curbside space.”

TPA estimates that the proposed rates are expected to generate $5.1 million in additional revenue in 2025.

This will be the second time in the past year that on-street parking rates have increased. Before this year, wages were between $1 and $5 per hour.

TPA is also proposing changes to parking fees for 112 off-street facilities.

“The proposed changes will ensure that TPA’s rates are both competitive and consistent with TPA’s rate-setting policies,” the report states.

The changes could create $3.4 million in revenue increases next year, the agency said.