Give residents special permits which allow the to park for free. That's how it works here (Helsinki, Finland). Permit is not free, but cheap. It is for specific vehicle and the registered owner needs to live there. There permits are not per street, but the city is divided to several areas.
Resident parking, €20pm in Lyon, France, knowing that the public transport is excellent. I wish they would ban cars entirely in the 500,000ppl area, but you need a car from time to time, when you're pregnant, old, have a sprained ankle or back, need to carry an iMac around or to just get out for a hike in the countryside. Still, one-day pollution permits would be better than taxing only parking.
