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Re:How not to create traffic jams: Don’t let people park for... by sokoloff on Saturday April 08, 2017 @02:38PM (#14068288)
Yes, it's a subsidy to the merchants who, in turn, pay to the city property tax and sales tax.

Merchants decide where to locate in part based on traffic counts (vehicle and pedestrian). Places that are more valuable to merchants are more valuable to the city (property taxes and sales taxes are higher).

It's economically logical for the city to consider whether to offer this investment/subsidy.

Re:How not to create traffic jams: Don’t let people park for... by narrowrail on Saturday April 08, 2017 @05:24PM (#14069117)
I know that in Boulder (CO), the downtown parking spaces that are on the street are owned by the city, and merchants were paying people to feed people's meters b/c they felt parking tickets were driving people away.

Edit: I should put this in context:

The merchants felt the city (which collects sales tax revenue) would benefit by subsidizing parking, which allows for more traffic and theoretically leads to increased sales (more tax dollars). The city saw parking tickets as a greater source of revenue, and felt increasing enforcement was the better plan. The merchants paid meter-feeders selectively, so as to encourage locals who are a more consistent source of revenue.