A woman uses a ParkPlus pay machine in Calgary. (CBC)

A proposal by the Calgary Parking Authority to raise parking fines as a way to generate extra revenue has been rejected for now.

The land use, planning and transportation committee turned down raising parking tickets from $40 to $50, along with the idea of gradually boosting the late penalty from $50 to $75 over two years.

"I've thought about it for some time and I just don't like them [the proposed increases]. So if I don't like them, I'm not compelled to vote for it," said Ald. Dale Hodges.

The authority was looking to generate $1 million more next year with the fine hikes and several million more with other revenue-generating ideas including extending hours people have to pay for parking, possibly including Sundays and holidays.

Less than a week ago, the CPA announced a cut to downtown parking rates. But none of its plans have gone through city council. The mayor and aldermen are slated to review the proposed budget next week.

'I think the tail's wagging the dog here and that needs to stop.'—Ald. Ric McIver

Ald. Ric McIver blasted the parking authority for publicizing changes before budget approval.

"Don't call a media conference claiming to lower rates and then drop a bomb later saying we're hoping to raise other rates and then try to box council in to say 'Well if you don't do everything we want, we're going to embarrass you at budget time.'

"I think the tail's wagging the dog here and that needs to stop," McIver told reporters on Wednesday.

Added Ald. Diane Colley-Urquhart: "These guys seem to be a little bit out of control."

If city council rejects any of the authority's plans, aldermen will have to make up for the projected revenue by cutting services, or finding additional returns elsewhere such as through property tax increases.

"Nothing in here is a done deal until council approves it," said Ald. Gord Lowe.

Rate cut cost $1.4M

On Friday, the authority adjusted weekday parking rates on prime downtown streets — to $2 for the first half hour, $2.25 for the second half hour, and $5 for subsequent hours — in an effort to encourage more short-term turnover.

Rates at three downtown parking lots will also drop slightly starting in January.

The move will cost about $1.4 million a year in revenue.

The parking authority took in $22.4 million in 2008 — $13.5 million of which went to the city for transit and road maintenance.

With files from Erin Collins