Detroit to raise parking meter fines

The reason: it costs more to process the fine than the money collected from it. This could be one of those things that keeps them bankrupt. [Link]

The recommendations, which would bump the current parking fines of $20, $30 and $100 per ticket to a two-tiered structure of $45 and $150, are among the revenue-generating strategies recommended by Detroit’s restructuring consultants.

The proposed reforms come as Emergency Manager Kevyn Orr awaits an analysis of the city’s parking assets and contemplates spinning off Municipal Parking, a department that generally breaks even or fails to bring in enough revenue to cover its expenses.

The city is paying $32 to issue and process a $30 parking violation, and it hasn’t adjusted rates since 2001. On top of that, about half of Detroit’s 3,404 parking meters are not operating properly at any given time, says Orr’s spokesman, Bill Nowling.

“It’s another example of the old, antiquated system and processes the city has that creates impediments for anyone trying to do their job,” Nowling said.

Detroit Chief Operating Officer Gary Brown is advocating for the changes, which he says would bring in an additional $6 million per year and $60 million over the 10-year plan of adjustment Orr is proposing for the bankrupt city.

“That’s real money,” Brown said. “If the asset is truly an asset and making money, no one is going to want to do anything with it.”

Brown said the ticket increases would not unduly burden Detroit residents, since 70 percent of the fines are written to nonresident offenders. The city also expects to offer a one-time amnesty program that’s commensurate with any increase.

Brown said it’s unclear how much is currently owed to the city in unpaid parking fines. Some fines are more than 10 years old, he said, surpassing the statute of limitations and “should be written off.”