Charlottetown City Council struck down a motion Monday to raise metered parking rates to $1.25 per hour, but it's still going to cost more to park downtown.
Deputy Mayor Stu MacFadyen said council is required to pass two resolutions allowing parking rates and taxi fares to increase.
"HST is coming in and we have to put that cost into the parking meters," said MacFadyen after the March monthly council meeting.
"We were going to put it up to $1.25, thinking that the machines would not take a dime, but they have told us that the machines will take a dime so we will put the price at $1.10 (per hour), HST included," he said.
The parking-meter rate increase comes into effect April 1.
Council also worked on advancing legislation to allow taxi fares to increase, also to accommodate the HST. That resolution requires one more vote in council to come into effect.