New Rate Structure
Harvard University Parking Services
46 Blackstone Street
Cambridge, MA 02139
Phone: 617-495-3772
Fax: 617-495-9119
Email: parking at harvard dot edu
Revised April, 2009
On this page...
- A Message from the Associate Director of Parking Services
- New Parking Rates 2009/2010
- How Our Rates Compare to Other Local Universities and Commercial Garages
- The Benefits of Choosing Payroll Deduction for Harvard Parking Permits
- Pre-Tax Savings Table
- Frequently Asked Questions
A Message from the Associate Director of Parking Services
April 2, 2009
Dear Harvard University Colleague:
There have been several exciting advancements that have enriched the parking experience at Harvard. In August 2008, Harvard Real Estate Services and Harvard Parking Services finalized work on the 10 Akron Street graduate housing and garage project, providing 115 spaces of underground commuter and tenant parking in the Riverside area. Primary completion of the Northwest Lab building resulted in lane resurfacing and improved landscaping at the 52 Oxford Street garage entrance. The newly reconfigured Francis Avenue lot now offers shared long and short term parking, new advanced meter technology, improved lighting and a 74 space covered bike shelter. Our parking software application was updated to augment processing and increase security. The CommuterChoice MBTA-pass program reached unprecedented levels, processing almost 7000 monthly passes and consequently reducing our single-occupancy vehicle (SOV) rate to an impressive 15%.
There are a myriad of operational changes scheduled to take place in Transportation Services during the 2009-2010 academic year including:
- Implementing a new online permit renewal website. The updated site will include added safety and security features to protect critical and confidential information
- Continuing work on the 700 space Northwest Corner underground garage with a tentative opening date of September 2010
- Installing new energy-saving light fixtures in all our garages, resulting in a significant energy consumption reduction and a cost savings after a two-year payback period.
- Enhancements to the carpool program allowing employees who commute together four days a week to take advantage of the carpool incentives
- Rolling out the Low Emission Vehicle (LEV) preferred parking program to selected facilities in Cambridge
- Implementing a pre-tax savings program for private transit carriers, such as Amtrak and most commercial bus lines. This program will be serviced through the MBTA website and allow faculty and staff the option of choosing private transit at pre-tax savings along with purchasing subsidized MBTA passes.
Parking Services is also synchronizing our "permit cycle" with the University's fiscal year. Traditionally, annual permits were valid from September 1 through August 31. Under the new system, permits will be valid from July 1 through June 30. To accommodate the transition, permits purchased for the 2009-2010 academic year will be valid from September 1, 2009 through June 30, 2010 and the total cost will be prorated downward to reflect the shorter 10 month timeframe. The next permit cycle in 2010 will span from July 1, 2010 through June 30, 2011.
Several years ago, the University developed a transportation financial strategy to address the needs of infrastructure development and to pay for the relocation of surface parking to more expensive, underground garages. Even with significant financial support from the University and substantial reductions in operating expenses, the cost of parking will increase modestly in the next academic year. Raising rates is never an easy decision, especially during challenging economic times. This measure is necessary for long-term investments in these facilities.
Starting September 2009, annual permits will range from $965 for unreserved surface parking to $1,920 for reserved garage parking. Remember, if you pay for commuter parking through the University payroll deduction program, your fees are exempt from income and payroll taxes. Choosing payroll deduction can reduce the net cost of your parking permit up to 35%, depending on your income tax bracket. By taking advantage of these important tax benefits, the convenience of parking at Harvard only costs about $3.08 to $6.12 per day.
Transportation Services will continue review our business practices throughout the year with the focus on improving efficiency. Throughout this process, we are committed to providing the highest level of service. For more detailed information on parking rates, programs and initiatives, please visit the Transportation Services website at: www.uos.harvard.edu/transportation/. The Parking Services and CommuterChoice staff members are dedicated to help you with any commuting questions or concerns. Please contact Parking Services at 617-495-3772 or email the office at parking@harvard.edu. To contact a CommuterChoice representative please call 617-384-7433 or email the department at commuterchoice@harvard.edu.
Sincerely,
Jim Sarafin
Associate Director of Parking Services
New Parking Rate Structure 2009
September 1st, 2009 - June 30th, 2010 (Prorated for 10 Months)
Permit Type |
FY10 |
||
Reserved Garage |
$ 1,920.00 |
||
Reserved Surface |
$ 1,810.00 |
||
Unreserved Garage |
$ 1,030.00 |
||
Unreserved Surface |
$ 965.00 |
||
Morn/After/3Day Garage |
$ 735.00 |
||
Morn/After/3Day Surface |
$ 690.00 |
||
Metered Surface |
$ 295.00 |
||
Evening Commuter Garage/Surface |
$ 55.00 |
||
Motorcycle Garage/Surface |
$ 165.00 |
||
Vendor |
$ 2,305.00 |
||
Tenant Garage |
$ 1,995.00 |
||
Tenant Surface |
$ 1,770.00 |
||
How Our Rates Compare to Other Local Universities and Commercial Garages
Unreserved On-Site Parking
Location |
Type |
Annual Cost FY09 |
Annual Cost FY10 |
Harvard Medical School |
garage and surface |
$ 2,294.00 |
$ 2,478.00 |
BU Medical Campus |
24-hour unreserved garage |
$ 1,680.00 |
currently |
BU Charles River Campus |
24-hour surface/garage |
$ 1,529.00 |
currently |
Northeastern |
preferred garage |
$ 1,330.00 |
currently |
BU Charles River Campus |
commuter surface/garage |
$ 1,069.00 |
currently |
Northeastern University |
day unreserved garage |
$ 960.00 |
currently |
MIT |
Employee commuter |
$ 786.00 |
$ 872.00 |
Commercial Parking
Location |
Type |
Current Cost |
Harvard Square Garage |
24-hour |
$ 5,100.00 |
Church Street Lot |
24-hour |
$ 4,500.00 |
Charles Hotel |
24-hour |
$ 4,200.00 |
University Place |
24-hour |
$ 3,780.00 |
The Benefits of Choosing Payroll Deduction for Harvard Parking Permits
The cost of a Harvard parking permit can be reduced by up to 35% if it is paid for through automatic payroll deduction. The Internal Revenue Service allows employers to exclude the cost of parking for eligible commuting employees from state and federal payroll taxes. This means that when you use payroll deduction your Harvard parking permit fee is subtracted from your gross earnings before taxes are applied. This is similar to other tax-deferred deductions such as medical insurance and 403b investment plans. Depending on your income tax bracket, this results in net savings of up to 35% off the cost of your parking!
For example:
A staff member purchases a yearly unreserved surface parking permit through payroll deduction. Although the annual permit fee is $965.00, this amount is deducted before payroll taxes. Thus, the net cost will be approximately $627.00 - a tax savings of $338.00! This brings the actual cost of a parking permit to only about $2.56 per workday!
Please refer to the following table for examples of how pre-tax savings compares with net cost.
Pre-Tax Savings Table
Permit Type |
FY10 Annual Rate |
Estimated Net Cost w/Payroll Deduction |
Reserved Garage |
$ 1,920.00 |
$ 1,248.00 |
Reserved Surface |
$ 1,810.00 |
$ 1,177.00 |
Unreserved Garage |
$ 1,030.00 |
$ 670.00 |
Unreserved Surface |
$ 965.00 |
$ 627.00 |
Other benefits to choosing payroll deduction include:
- Additional increased payroll deductions periods for users renewing online (11 months).
- The average eligible daily commuter will pay $3.08-$6.12 per day to park by choosing payroll deduction.
Frequently Asked Questions
Why Are Parking Rates Going Up?
Harvard's academic mission is driving extensive campus development on sites currently used as surface lots. The cost to replace parking underground is in excess of $75,000 per space. Compared to open surface lots the cost to operate and maintain these new facilities is significantly higher.
How Much is the University Paying?
Funding for the parking operation, which includes the new parking infrastructure, comes from three sources; an infrastructure fee assessed on all new development, a yearly fringe benefits contribution, and increased parking rates. The combined contribution from the University(infrastructure and fringe benefits) will cover approximately two thirds of the expenses for parking. The permit holder will pay the remaining one-third.
Can We Increase the Number of Parking Spaces?
While the City of Cambridge zoning requires that parking be provided in the approval process for any new building, other Cambridge regulations effectively limit the growth of parking in the City. Since the late 1980s, Harvard has been subject to a cap on the number of parking spaces allowed in Cambridge. Similar institutional master planning requirements exist in Boston for the Allston Campus.
What Are My Options if I Choose Not to Park?
Transportation Services offers a myriad of commuting options through its CommuterChoice program. Some alternatives to driving alone include carpooling, vanpooling, biking, and Zipcar privileges. In addition, Parking the One-Day Permit Online Permit Purchasing System is available to employees who need to drive to work occasionally.
Will Rates Increase in the Future?
Parking rates are directly related to the cost of operating the parking operation. The operation includes managing the Parking office as well as the construction and renovation of the parking infrastructure. With additional capital development and restoration planned for the years ahead, the costs to operate the parking operation will continue to increase. Parking rates will be reviewed each year in consideration of all these factors.
