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By rdnewsNOW Staff

CITY COUNCIL REPORT

HotSpot parking system successful in Red Deer, though challenges remain

Apr 7, 2025 | 5:01 PM

Although the initial overhaul took some time to adjust to, the City of Red Deer’s administration reports the new downtown parking system, implemented about two years ago, has been a financial benefit to the city and improved some elements of the user experience.

City council received a report highlighting the successes, challenges and what’s being done to address them during its regular meeting on April 7.

The need for a new parking payment system was identified in 2016, following growing user frustration with aging coin meters that frequently failed to function properly, offered no alternative payment methods and no longer had parts accessible for repairs.

In 2023, the city transitioned to using HotSpot parking, which offers two digital options and one physical option for payment. Digitally, users can scan a QR code provided by parking signage or use the HotSpot mobile app. There are also a limited number of physical pay stations dispersed throughout the parking areas.

Moving to the HotSpot model reduced the physical infrastructure needed for parking by 60 per cent, administration reports, creating long term savings for the city. Also, in 2019, parking related revenues provided an approximate budget surplus of $10,000, whereas in 2024, that rose to over $500,000, indicating a financial benefit to the city.

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Transitioning to HotSpot required a complete overhaul of the city’s previously physical system, a feat it expected to be accompanied by challenges. To try to mitigate these, city representatives attended the seniors’ fair in 2023 and 2024, held two information sessions at the Golden Circle, launched an ambassador program and offered free parking during the transition, as well as ticket forgiveness from October 2023 to October 1, 2024.

HotSpot reported Red Deer as the only municipality it’s worked with that has implemented an ambassador program, wherein city employees roamed the streets to assist users with the new system. To the company’s knowledge, Red Deer is also one of only three municipalities to have accommodated in-person parking ticket appeals and complaints.

Despite these efforts, both technological and user errors, such as inputting the wrong plate information, inevitably sprang up. Changes have been made to address technological challenges faced in the initial rollout, and more are coming to address user-based challenges, especially for those in the senior community.

“I think we all recognized in council today that the senior demographic remains the one where we really have to devote the highest level of attention, because that’s the demographic that most often visits the downtown, particularly daytime downtown,” commented Mayor Ken Johnston.

Seniors 65-years-old and over make up 12.79 per cent of Red Deer’s population, according to the 2019 Municipal Census Report.

Feedback from this population has indicated it’s been a difficult transition for them, and they would prefer to have more physical pay station options as they adjust.

In response, Red Deer has purchased seven additional payment stations that are expected to be installed by the end of April or May this year, and will be installing additional way-finding signage to help users locate the stations.

Mayor Johnston urged the senior community to utilize these new stations, as well as the other supports available.

“The worst thing you can do is to say you won’t revisit the drug store, the florist, etc.,” he said. “There are ways you can mitigate these challenges: you can mitigate them here at City Hall, there’s a tutorial online, or you can walk in the door of the business and they can help you navigate it.”

Residents can access the online HotSpot tutorial here and additional parking information here. Through the Parking Partners program, some businesses will assist visitors with inputting their parking information as well.

The city also reminds residents that on-street parking is free for those vehicles with a valid Veteran Licence Plate.

Moving forward, the city will continue to work on adjustments based on community feedback. Council also directed administration to prepare a more comprehensive report of the financial data regarding how parking is managed in time for Budget 2026 debate, so council can determine whether Red Deer should be in the business of parking at all, Johnston added.

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Council also unanimously passed second and third readings of Off-Site Levy Bylaw 3730/2025 in the Apr. 7 meeting. Off-site levies are charged to developers to fund infrastructure like roads and utilities when redeveloping areas or building new ones.

The updates to the bylaw brings the average off-site levy rate to $164,605 per hectare, down from $204,816 per hectare in 2019. The city says this update reflects input from the development community, development trends and growth projections, and will be reviewed annually moving forward.

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