The SFMTA board approved the budget at a crowded meeting at City Hall Monday afternoon.
The budget includes the elimination of the Sunday meter enforcement effective July 1.
The policy had been implemented in January 2013, but a year later, Mayor Ed Lee called for its elimination during his State of the City address.
Lee said in a statement after today's vote that the repeal "is about making San Francisco a little more affordable for our families and residents."
"Instead of nickel and diming our residents at the meter on Sunday, let's work together to support comprehensive transportation funding measures this year and in the future that will invest in our City's transportation system for pedestrians, bicyclists, transit riders and drivers alike," Lee said.
Among other aspects of the budget approved by the SFMTA board today are the extension of the Free Muni for Youth program for low- and moderate-income youth.