As of Jan. 1, hourly rates for street parking downtown increased by $1 to as much as $5 an hour, depending on where drivers park. (CBC)

Drivers heading to downtown Calgary are paying more to park on the streets and in city-owned parkades.

As of Jan. 1, hourly rates for street parking downtown increased by $1 to as much as $5 an hour, depending on where drivers park. For parkades, the rate increased to $6.50 from $6 an hour, and the monthly parking rate is now as high as $465, up from $428.

Calgary is already the most expensive city to park in the country. But the Calgary Parking Authority argues the new rates are still cheaper than what private parking companies charge.

Vinci Park, for example, has more than 45 lots in Calgary and charges more than double the city's hourly rates in some places.

City building more parkades

The parking authority took in $22.4 million in net revenue in 2008 – $13.5 million of which went to the city for transit and road maintenance. This year's net revenue is projected at just over $21 million.

Some of that cash will pay for new parkades to ease the parking crunch, including one slated for the East Village, which should be completed by 2011.

"That facility alone, with land costs inclusive, is between $45 and $50 million for us to proceed. That cost is an enormous burden," spokesman Dale Fraser said Thursday.

"Unlike transit or other city services, we are not subsidized, and no taxpayer dollars actually plow into the parking authority."

Jack Lane parks downtown and pays between $25-$27 a day. Monthly rates are more cost effective but hard to come by, he said.

"There's very limited parking downtown, so what do you do? This is part of my job," he said.

For those who don't park regularly downtown, the increase is not as painful.

"If I had a job down here and if I had to park here daily, I wouldn't," said Sanjiv Kawa.