L.A. losing millions of dollars on uncollected parking tickets, other fines and fees, audit shows

   
On a day when Los Angeles laid off more than 200 employees, a new audit released Thursday revealed that the city is losing tens of millions of dollars in revenue because of collection practices that barely capture half of parking ticket fines and other fees.

"I don't know of any business that would stand for such a low collection rate," said City Controller Wendy Greuel, who released the audit of six departments -- police, fire, housing, transportation, sanitation and building and safety. "It's simply not sustainable, and the city cannot and should not allow this to continue."

The audit, which looked at fiscal year 2008-09, showed that only 53% of some $553 million in city billings were collected. That's a loss of $260 million annually—enough, said City Councilman Paul Koretz, to have helped fill a budget gap that has led to hundreds of layoffs, reduced library hours and other service cuts.

Among the most "egregious" examples, the city auditor said, were parking citations and Emergency Management Services billing accounts. The city only collected 53% of the money it is owed on parking citations, the audit found, and 38% owed in emergency service billings.

"We need to do better, because otherwise the situation is grim," said Koretz, who chairs the council's audits and governmental efficiency committee and joined Greuel at a press conference outside City Hall. "There's a sword of Damocles that hangs heavy over countless city employees who fear their jobs might be the next ones lost."

The audit is a follow-up to a similar study three years ago. The city controller found some improvement, but said it was "outrageous and unacceptable" that Los Angeles had not made more progress.

Under-collection of revenue is a problem at every level of government, and officials acknowledge that not all billings are ultimately collectible. For instance, some vehicle owners will never pay their tickets, while indigent patients may never reimburse the city for ambulance fees. How Los Angeles' collection rate compares to other cities was not known, the controller said.

However, Greuel said there was ample room for improvement, and pushed for several reforms. Among her recommendations were the creation of a centralized billing process and a mandate that police and fire departments expeditiously refer delinquent accounts to outside collection agencies.

-- Patrick J. McDonnell

Photo by Al Seib / Los Angeles Times

Comments

[Cole Jacuzzi]

Snowball's chance in hell this is accurate concerning the parking tickets. Your car gets immediately towed after the 3rd delinquent ticket, costing you a fortune, plus you can't renew registration. How can this be true if the car is the asset that is claimed by the city very easily. Poor job on the consulting firm's behalf. Plus the 50% margin is because tickets double after 21 days. And those who get them, probably declare bankruptcy, or forfeit their jalopy. Inflated figures. The city is tenaciously milking people for parking violations already. Out of control.

[Edge]

Come to think of it, I have a parking ticket issued me back in 2001 on a car I no longer own. It's one of those street sweeping on Thurs tickets in the Western/Pico area. Should I pay it? No, I won't be doing so any time soon. Sorry LA.

[AmericansRcool]

It's funny to read people pontificate about parking tickets who obviously have never "not paid" a ticket. A least a dozen posters have called for a third party collection agency. Ever hear of G C Services? Sound familiar? For decades Lockheed had the parking ticket collection business concession from the City of LA, G C Services currently handle all traffic tickets and court fines and many of the parking tickets. City employees have nothing to do with the collection process and haven't for a very long time. Parking tickets are a racket and the fines are so high they are unconstitutional. Requiring sky high fines, $500 for touching a red zone by a few inches, is excessive and illegal. Red Zones and Bus Zones seem to grow bigger every time they get repainted. Ever notice? They do. I have photos. The parking regulations need reform and the city would probably do a better job at collecting its own overdue fines. Parking regulations are good for traffic (4PM-6PM Lanes) and good for urban business and indispensable to enforce neighborhood street permits. We need to fix a broken system and make it work.

[Paul Revere]

Another prime example of a dysfunctional government entity that has no idea how to make it in the business world?

[urba]

I agree completely with rickn6900 who says that the city should keep its parking meters in working order. That said, here’s a radical idea:

Instead of whining about illegal aliens, the cost of parking fines, the salaries of city workers, etc., why don’t you people just try parking LEGALLY and accept the consequences when you don’t?

[Yoga2010]

More reason to be thankful I don't live within city limits. Sanctuary comes back to bite you, Los Angeles. The unpaid fines probably come back to unregistered, uninsured cars which are probably driven by - what's the "un" term? - the undocumented. LA Parking once ticketed my car for an invalid registration when I clearly had the DMV issued temporary properly displayed. And when I fought it, I won, but the notice I received stated that the fine had been paid, even though I paid nothing. Accounting is a wonderful thing.

Boycott LA!

[TitanGirl]

Well stop writing parking tickets... let us park on the street for free... some people can't afford $7 for parking... just raise taxes or something.

[Justin]

I read this declaration of "lost revenue" as a revolting display of how this city has come to depend on covertly taxing the citizens. In the last couple years we have seen the restrictions on parking increase as well as increased fines for violations. Furthermore, the Los Angeles superior court has curtailed the period of time given to pay down these increased fines.
The city shows not compunction about heaping more budgetary responsibility on individual working-class citizens. Meanwhile, business related violations go unpunished. "What violations?", you ask. How about the fact that billboards are illegal in Los Angeles. That's right. All those billboards you see across the city are in violation of city statutes. Do you see the city doing anything about it. No. Why?
That is only one example of how this city looks the other way when business interests break the law. All that responsibility is levied on citizens under the thinnest pretense of upholding law and order. The city officials are selling us up the river in order to maintain relationships with wealthy businessmen. Then they have the gall to point the finger at citizens who are not paying against the punitive assault of failed urban planning.
At least the City of Los Angeles will never run short of hubris.

[Asswit]

My experience: Im new to California from Ny. Got one ticket for illegal u-turn which I deserved. But 350$ for a u-turn come on. Sent in payment by check on time (but close to the date) Couple of weeks later I receieve notice from collections saying its not paid and theyve jacked the fine to 850$ for a u-turn. (Thought wow that was fast going to collections and no other notices - call ect - as I had already paid anyways.)
Called the clerks # - 150 waiting on the phone before u, ugg, so I go down to the "office" in LA to straighten it out..... mistake 300 in line (like going to a concert) I wait it out .... when I get to the front the clerk looks it up and decides I have paid and says it will be fixed but no appology for someone not doing their job.

[Asswit]

Thats right we may make low wages but we pay none of your taxes, carry no auto insurance, pay no registartion fees, get free medical and amulance rides and we will park where ever we want and damn sure are not gonna pay your stinking parking or any other tickets.

[Efrain Rojas]

To all the city employees who are posting to suggest we "live with the consequences" of parking illegally, I would remind you that you are here to serve us-not the other way around. Clearly parking citations have become a way for the city employees to help themselves to our earnings.

[impoundguy, Los Angeles, Ca.]

But let's save those City Employee jobs at ANY cost...because they do such good work...

[parking cop]

Regarding having a third party collecting the outstanding fee. It is currently being done by a company called ACS. We as parking enforcement officers write the tickets as required. We also employ a vehicle that reads plates on vehicles and if your vehicle has 5 or more unpaid tickets it is towed for that reason. Most officers are truthful in writing tickets. If a meter is broken you can park at it for the posted time limit, but only in LA, if you do that in other cities you might get a ticket. A lot of people jam the meters so they don't work. Most of you are mad at us for doing our job, but don't hesitate to call if you have a car that has been sitting outside you house for several days and we don't come over right away to take care of the problem.

[Shel]

The parking enforcement officers don't always write just tickets but what's even more horrifying is that when the parking violations bureau - the third party collection company called ACS - holds a hearing to contest the ticket, they don't care about the facts or what's right or wrong. They will ALWAYS find you guilty to increase their revenue. This is awful and they should be stopped. I also agree with many of the other comments. Parking tickets should not be another way to gouge city residents for money.