Under the proposed settlement announced Wednesday, Balboa Park paid parking will end no later than January 1, 2027, while residential trash fees will be reduced beginning July 1, 2027. The agreement still requires final City Council approval, expected at a June 8 public meeting.
The deal would lower trash fees from $55 per month to $38.75 per month for a large bin starting July 1, 2027, before increasing slightly to $39.91 on July 1, 2028. The city had implemented the fees after voters approved Measure B, which ended San Diego’s century-old “People’s Ordinance” system of city-funded trash collection for single-family homes.
The rollback follows a lawsuit brought by homeowners who argued the city charged more than voters were led to believe and more than the actual cost of service allowed under Proposition 218. Opponents noted that voters were told during the 2022 campaign that fees could fall roughly in the $23 to $29 per month range, only for the city to later approve substantially higher charges.
The settlement also effectively kills Balboa Park’s short-lived paid parking program, which launched in January and immediately triggered public anger, vandalized kiosks, political pressure, and sharp attendance declines at museums and cultural institutions. Paid parking rates in and around Balboa Park included $2.50 hourly meter charges and daily lot fees ranging from $5 to $16, with resident and nonresident pass systems layered on top.
The reversal is especially striking because the city spent substantial time and money designing, studying, defending and implementing policies that are now being scaled back or repealed. Critics have repeatedly pointed to approximately $7 million spent on the trash fee cost-of-service study and outreach process, only for the city to now agree to lower the charges after litigation and public pressure.
Balboa Park paid parking also proved costly beyond implementation. The city installed kiosks, built an online resident verification system, reworked parking policy, defended the program publicly, and then watched attendance decline across park institutions. Reports showed museum attendance dropped an average of 34%, with some institutions falling as much as 60%, while cultural leaders warned of millions in lost revenue, possible layoffs, reduced programming and long-term harm to Balboa Park’s ecosystem.
The paid parking program was originally projected to generate as much as $15.5 million annually for Balboa Park-related needs, but revenue expectations were sharply downgraded after the public response and lower-than-expected usage. By spring, the program had reportedly generated far less than anticipated while coinciding with major declines in park visitation.
Former Coronado Mayor Richard Bailey, who is running for San Diego City Council District 2, quickly framed the settlement as a victory for residents and volunteers who organized against the fees. Bailey helped lead the “Repeal The Fees” effort, which sought to qualify measures targeting Balboa Park parking fees and trash fees for the November 2026 ballot. The campaign argued City Hall should address budget deficits through internal reforms rather than new charges on residents.
In a video posted Wednesday, Bailey said the settlement was “big news” and credited volunteers, donors and thousands of San Diegans who participated in the campaign. He noted that the city is currently saying Balboa Park paid parking will end no later than January 2027, but said opponents will push for the repeal to happen sooner.
“This is what happens when everyday San Diegans come together to push for common sense policies at City Hall,” Bailey said.
Councilmember Raul Campillo, who voted against both the trash fee and Balboa Park parking fees, also praised the settlement, saying it would reduce the cost of living and help rebuild trust in city government.
The settlement lands during an already brutal budget season for Mayor Todd Gloria and the City Council. San Diego is facing a continuing structural deficit, proposed cuts to arts and culture funding, potential impacts to libraries and recreation services, and broader criticism over the city’s reliance on fees, parking enforcement and service reductions. SanDiegoVille previously reported that the city’s budget problems have also placed beloved civic traditions such as December Nights under threat.
The city’s broader fee and enforcement strategy has also drawn scrutiny because several recent programs have either underperformed financially or created additional legal exposure. A jury recently awarded more than $16 million against San Diego in a parking citation penalty class action lawsuit, while the city has faced growing criticism over expanded meter rates, special event parking surcharges, Balboa Park paid parking and other revenue-generating enforcement measures.
The latest settlement does not erase the city’s underlying financial problem. It instead forces City Hall to find other savings, revenues or cuts to replace money officials expected from trash fees and Balboa Park parking. But politically, the agreement represents an acknowledgment that the fee programs became unsustainable in their current form.
For opponents, the lesson is clear: the city spent millions studying, implementing and defending fee structures that ordinary residents, park institutions, homeowners and civic groups warned were flawed from the beginning.
For City Hall, the harder question now is what comes next. San Diego still faces deep budget challenges, aging infrastructure, rising labor costs, pension obligations, and pressure to maintain core services. But after this settlement, elected officials may find it harder to rely on new resident fees without stronger public trust, clearer cost justification and better evidence that the programs will actually work.
Balboa Park paid parking is expected to end no later than January 1, 2027. Trash fee reductions are expected to begin July 1, 2027, pending final City Council approval.
Originally published on May 20, 2026.
