Laguna Beach Pushes Forward with New Parking Rate Plan and Expansion Efforts

Laguna Beach is preparing to update its parking system once again, moving toward higher rates and a broader network of paid spaces. After gathering community feedback this summer, city officials are now seeking the permits required to move their plans ahead.

During its Sept. 23 meeting, the City Council authorized staff to begin applying for coastal development permits, a key step since most of the city lies within the California Coastal Zone, where changes that might affect public beach access must be approved by the California Coastal Commission.

Alexis Braun, Laguna Beach’s acting director of transit and community services, explained that the city intends to roll out a new five-year parking rate plan similar to the one first introduced in 2021. That earlier effort gradually raised parking prices by $1 per hour during the non-summer months and allowed for annual summer increases of up to 10%. The phased model, Braun said, helped the city keep pace with rising maintenance and operational costs while managing heavy demand during the busy summer festival and tourism season.

Parking fees are a crucial source of local revenue. Beyond paying for enforcement and maintenance, they support the city’s transit and mobility programs, including the Laguna Beach Trolley, which provides free rides connecting neighborhoods, beaches, and business districts, as well as the Laguna Local on-demand shuttle service, a rideshare-style system launched in recent years to reduce traffic and parking pressure downtown.

“The goal is to continue improving coastal access while reducing congestion, vehicle emissions, and neighborhood impacts,” Braun said. “This new plan builds on the success of our existing parking and transportation programs.”

As of this summer, drivers paid $6.45 per hour for downtown parking and $3.60 in other areas. Under the proposed renewal, those rates would gradually climb to $10.20 downtown during summer months and $5.85 during the off-season by 2030. The citywide off-season average, meanwhile, would increase from $2.50 to $3.50 per hour.

According to a city staff report, the new rate structure could bring in $500,000 to $1 million in additional revenue annually. Officials say that money is needed to offset growing transit expenses, fund infrastructure upgrades such as new pay stations and resurfaced lots, and help cover operational costs for programs that make it easier to get around town without a car.

City Manager Dave Kiff recommended separating the required Coastal Commission applications, one for the rate adjustments and another for any future expansion of paid parking zones into new areas.

Mayor Alex Rounaghi said maintaining the city’s robust public transportation network depends on sustainable funding. “Our transit operations aren’t guaranteed to be financially self-sufficient,” Rounaghi said. “Parking fees are what allow us to offer free trolleys and ride services. If we want those to continue, the rates need to keep up with costs.”

Kiff added that the parking fund’s surplus has been shrinking in recent years as the city takes on higher transit expenses and capital projects. “We’ve relied on that fund for key improvements,” he said. “If the balance keeps narrowing, it limits what we can do in the future.”

South Laguna and Neighborhood Impacts

One of the more debated aspects of the proposal involves whether paid parking should extend into residential neighborhoods, particularly in South Laguna, where coastal access streets frequently see overflow parking from visitors.

During a town hall meeting on Aug. 27, residents voiced mixed opinions, some welcomed paid parking as a way to improve turnover and reduce crowding, while others worried it could make it harder for locals to park near their homes.

“There was general agreement that a managed parking program could help,” Kiff said, “but the details- hours, time limits, and enforcement, are still being developed.”

The city is also exploring the possibility of adding metered spaces along the inland side of Coast Highway in South Laguna. Because Coast Highway is a state-owned roadway, staff must work with Caltrans to obtain an encroachment permit before making any changes. Braun said the proposed meters would likely carry a four-hour limit, designed to encourage turnover while preserving access for beachgoers and visitors.

Balancing Access, Tourism, and Costs

Laguna Beach’s challenge reflects a broader issue for many coastal communities: balancing the need to fund public services with maintaining affordable and convenient access to the shoreline. Parking policy is especially sensitive because the California Coastal Act emphasizes that cities must not create economic barriers that limit public use of the coast.

As the current five-year plan winds down, the upcoming months will determine how Laguna Beach strikes that balance. The city hopes the new structure will both sustain its popular free transit system and manage the flow of millions of annual visitors who come for its beaches, festivals, and small-town charm.