In a completely shocking, unforeseeable move, the people who
stole leased Chicago's parking meters will raise rates next week:
In an annual ritual that has become as predictable if not as joyous as a New Year’s Eve countdown to midnight, Chicago drivers again will have to dig a little deeper to pay to park at meters in 2013.
Loop rates will go up 75 cents to $6.50 an hour as part of scheduled fee increases included in Mayor Richard Daley’s much-criticized 2008 lease of the city’s meters to Chicago Parking Meters LLC.
Paid street parking in neighborhoods near the Loop will rise 25 cents and reach $4 an hour. Metered spaces in the rest of Chicago also will increase by a quarter per hour, to $2, according to the company.
So, CPM's costs won't change, because they have a fixed 75-year lease. In fact, since interest rates are the lowest they've ever been in the U.S., and since the Fed has made it clear rates won't rise until the economy gets better, CPM's costs are actually significantly lower than they were in 2008. On what basis, then, are they raising interest rates?
I believe my economics professor Leslie Marx might have some insight. I'll ask her next chance I get.