Memorandum
City of Lawrence
Municipal Court
|
TO: |
Toni Wheeler, City Attorney |
|
FROM: |
Vicki Stanwix, Court Manager |
|
DATE: |
June 29, 2016 |
|
SUBJECT: |
Meter Revenue Data |
When looking at meter revenues, the number of citations issued and the percentage of citations paid within 10 days has been fairly consistent over the past few years. Approximately 100,000 meter tickets are issued each year, and 68%, on average are paid within the first 10 days. Here are the details:
Meter Citations
|
Year |
Tickets Issued |
%Paid within 10 days |
# of tickets paid at $3.00 |
Revenue |
|
2013 |
100,869 |
68% |
68,799 |
$206,397.00 |
|
2014 |
94,390 |
68% |
64,439 |
$193,317.00 |
|
2015 |
102,141 |
70% |
71,183 |
$213,549.00 |
|
2016 to date |
52,197 |
69% |
35,780 |
$107,340.00 |
The three year average of meter citations issued is 99,133. The three year average of meter citations paid within 10 days is 68,140, or 69%. Assuming this average continues, an increase of meter fees from $3.00 to $5.00 would result in an average annual increase of $136,280.00
When looking at late fees and habitual violator fees, projecting revenue is much more difficult. There are several variables to consider:
1. An increase in the initial meter fee may result in increased adherence to the meter program which is the desired outcome we wish to achieve.
2. More citizens may pay their citations within 10 days to avoid the higher late fee penalty.
3. Revenue from late fees and habitual violator fees was higher in 2014 and 2015 due to concentrated efforts to eliminate the backlog of owner information entry that was needed prior to mailing notices. With the staff increase granted by the City Commission for 2015, this goal was accomplished and revenue has leveled out in recent months.
Some basic analysis of revenue from late fees and habitual violator fees is provided below. This should not be viewed as a guaranteed revenue projection due to the variables listed above.
Meter Citations (Late Fee Assessed)
|
Year |
Approx. # of Tickets paid late |
Revenue |
|
2013 |
16,590 |
$248,944.00 |
|
2014 |
20,376 |
$305,633.00 |
|
2015 |
24,868 |
$373,027.00 |
|
2016 to date |
11,786 |
$176,796.00 |
The three year average of meter citations paid at $15.00 (late fee assessed) is 20,611. If this average continues, an increase of meter fees with the late fee from $15.00 to $20.00 would result in an average annual increase of $103,055.00
Habitual Violator Citations
|
Year |
Tickets Issued |
Tickets Paid |
% Paid |
Revenue |
|
2013 |
1741 |
953 |
55% |
$47,691.00 |
|
2014 |
1484 |
791 |
53% |
$39,587.00 |
|
2015 |
1685 |
921 |
55% |
$46,057.00 |
|
2016 to date |
897 |
490 |
55% |
$24,521.00 |
The three year average of habitual violator citations issued is 1636. The three year average of habitual violator citations paid is 888, or 54%. Assuming this average continues, an increase of habitual violator fees from $50.00 to $75.00 would result in an average annual increase of $22,200.00
Summary:
It is safe to predict that an increase in meter fees from $3.00 to $5.00 has the potential for an annual increase in revenue of $136,280.00. We could see additional revenue increases of up to $103,000.00 for the late fee increase, and $22,000.00 for the habitual violator increase, although several variables could affect these estimates.