Proposal would give residents two hours of free downtown parking each week while increasing hourly rates, extending the paid parking season, and creating a fund for future transportation improvements.

Carrie Jones

Jul 08, 2026

The Bar Harbor Story is generously sponsored by Geddy’s.

---

BAR HARBOR—Bar Harbor residents might soon have two free hours of paid parking in downtown each week via a “coupon” policy run through the town’s parking kiosks and app.

That sort of change, the town says, will necessitate other changes to cover the cost. Those changes will likely come via increases to paid parking spots on downtown Bar Harbor roads and in lots.

The proposal is not set in stone, but Town Manager James Smith suggested multiple changes to the town’s parking policy.

Those suggestions are outlined in a parking memo and analysis presented at the Town Council’s July 7 meeting.

The town is not sure exactly how much parking revenue would be taken away if it gave residents those two hours of free in-town parking each week, but they’ve estimated it would be a maximum of $832,000 to cover the loss of revenue needed to create a residential parking program.

To cover that cost so that the budget isn’t increased, the town suggested raising parking fees to paid parking spaces in town and other changes for the town of roughly 5,000 year-round residents that supports Acadia National Park and its 4 million annual visits.

Paid parking on multiple streets in town as well as town-owned lots would be $5 an hour rather than $4. Overnight parking in the ferry terminal site would increase from $12 a night to $20.

Paid parking is proposed to begin earlier—on May 1, rather than May 15.

“By reinvesting parking revenues into parking facilities, pedestrian infrastructure, bicycle accommodation, traffic management improvements, and other transportation initiatives, the Town can ensure that future infrastructure decisions improve overall mobility while preserving or expanding public parking opportunities,” Smith wrote in the July 2 memo.

He also provided a draft policy to look at. Action on that would likely happen at the next Town Council meeting.

“It looks great. A lot of hard work went into that,” Vice Chair Earl Brechlin said.

Chair Maya Caines had notes about employee vehicle permits in the immediate downtown.

“It’s been a bit of an issue to us,” Bar Harbor Police Captain Christopher Wharff said.

There have been issues with giving permits to out-of-town employees of all Bar Harbor businesses, not specific downtown businesses, who were using it for personal time, he said.

Caines said she expected some pushback about non-downtown employees from out-of-town not having that.

Brechlin said that those non-downtown employees from out-of-town would have similar experiences as any other islander who isn’t from Bar Harbor.

In the end, Smith said, whether or not the taxpayers want to pay for nonresidents is a policy decision the councilors would have to look into or not.

Caines also asked about the weekly rental permit process, which calls for $750 per season for parking permits for short-term rental guests.

That program, currently, is not well used, Wharff said.

Another proposed change would be to have paid parking start before noon on Sundays. Speaking from the audience, Gail Leiser said people at churches would be impacted by that.

A parking analysis that’s included in the Town Council’s packet of materials for the meeting, shows that the proposed increase of $5 for premium spots would increase the average amount earned by each parking space to $5,171, bringing an estimated gross topping $4 million.

“An effective parking system also serves an important economic development function. Downtown businesses depend upon the continual arrival of new customers rather than the prolonged occupancy of parking spaces by a limited number of vehicles. By encouraging regular parking turnover, the Town’s parking program increases the availability of convenient parking near commercial areas, improves customer access to local businesses, and supports a more active and vibrant downtown economy,” Smith wrote in the July 2 memo.

Parking increases in some spots will go to support the program, offset costs due to the new resident program, and to a Parking Solutions capital improvement program.

“To maintain the long-term financial sustainability of the parking system, staff recommends that the first one dollar increase in premium parking rates be dedicated to substantially offsetting the maximum projected financial exposure associated with the Enhanced Residential Parking Program. This represents a direct reinvestment of parking system revenues into improved resident access while preserving the overall fiscal integrity of the parking enterprise. Parking Solutions Capital Program Staff further recommends that a second one dollar increase in premium parking rates be dedicated exclusively to a Parking Solutions Capital Improvement Program,” Smith wrote.

---

LINKS TO LEARN MORE

Watch the meeting

Meeting agenda

---

HELP SUPPORT THE BAR HARBOR STORY

When we started The Bar Harbor Story, we didn’t know if anyone would read it. But you showed up. You shared. You sent tips. Now—over 400,000 views every month later—it’s clear: people here care about their community and each other.

We’ve kept everything free because news should never be out of reach, but every one of our stories takes time to write, and your support keeps The Bar Harbor Story going.

If you value our work, please consider a paid subscription, a founding membership, or a sponsorship.

It truly helps us cover one more meeting, tell one more story, shine one more light.

Even $5 a month makes a difference. Click here to become a one-time supporter now.

Thank you so much for being here.

Founding member information can be found here.

Have questions about sponsorships? Just send Shaun an email at sfarrar86@gmail.com, he’d love to hear from you.