1. ORR URGES PUBLIC HEARING ON PROPOSED PARKING FINE HIKES Rimah Alwakya http://www.detroitnews.com/article/20140407/METRO01/304070075 April 7. 2014, The Detroit News

2. Background…  Kevyn Orr the city’s emergency manager has called for a public hearing on the initiative to increase the cost of parking fines in Detroit for the first time in a decade.  An order released Monday cites that Orr has deemed it “necessary and appropriate” to revise the city’s parking fine ordinance “to increase funds available to the city.”

3. Changes…  The fee changes would bump tickets from  $30  $45  $50  $65  $80  $95  The new schedule also eliminates a $20 rate for early payment.  Handicapped parking violations would climb from $100 to $150 and the late fees, with payments after 30 days, would rise to $170 for state residents and $200 for non-residents of Michigan.

4. Costs…  City officials in March said Detroit is paying $32 to issue and process a $30 parking violation.  The city is awaiting an analysis of parking assets and is considering spinning off the Municipal Parking department entirely on the grounds that it has historically failed to bring in enough revenue to cover its own expenses or at best breaks even.

5. Commentary by Detroit Officials  Orr’s spokesman Bill Nowling believes the parking increase is justified: “This allows us to recoup the cost of maintaining the parking system at the street level, but also puts us in-line with what other major metropolitan areas are charging for fines”  The most expensive fine in the country for expired parking meters in 2013 was $72 in downtown San Francisco. Detroit was among the lowest at $20

6. Money $$$  Detroit Chief Operating Officer Gary Brown has been a proponent of the rate hike as well as stricter penalties for individuals with 3+ unpaid tickets on the grounds that these changes would bring in an additional $6 million per year ($60 million over the 10-year plan of adjustment)  With the new plans Detroit is expected to generate $11.4 million in revenue for the current fiscal year, resulting in a $3.6 million surplus for the city’s general fund.  The ticket increases are one of the revenue-generating strategies that have been recommended by City hired restructuring consultants from Desman Associates.

7. Concerns…  Orr noted that the department's ability to raise revenue has been crippled by budget cuts which have reduced patrols on the street and resulted in a drop in the issuance of tickets.  About half of Detroit's 3,404 parking meters are not operating properly at any given time  Since 70% of tickets are issued to non-Detroit residents the hike could deter visits to the city for entertainment etc.

8. MB/MC

9. Thank you!  http://www.detroitnews.com/article/20140407/M ETRO01/304070075  http://www.foxnews.com/politics/2014/03/20/de troit-spends-more-to-issue-parking-fines-than-it- collects/