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Home My WebLink About03/20/1990, C-8 - DISPOSITION OF PARKING REVENUES, FINES AND FORFEITURES MEETING DAIS: i�11�11flI� ��I�p�Vl�lll city Of Sa►n LUIS OBISpO _ ° 1990 ICOUNCIL AGENDA REPORT NUMBER FROM: (��Y�/� Dave Romero Wayne Peterson Prepared by`kith Opalewski Public Works City Engineer Parking Program Coordinator SUBJECT: Disposition of Parking Revenues, Fines and Forfeitures CAO RECOMMENDATION: Introduce an ordinance to print amending section 10.64.040 (Disposition of Fines and Forfeitures) of the Municipal Code, whereby 100% of fines and forfeitures paid to the City would be deposited into the "parking fund", effective July 1, 1990. BACKGROUND: Historically, all monies received for the payment of parking citations were deposited into the General Fund. In September 1987, the Council adopted Ordinance (No. 1100) establishing two special funds (Street Improvement and Parking) for deposit of fines and forfeitures. Each special fund receives one-half of all parking citation money paid to the city. The "street improvement fund" has been used to purchase and maintain traffic signs and signals as well as the construction and maintenance of public streets within the city. The "parking fund" has been used to operate and maintain parking meters and off-site lots, enforce parking regulations, and provide financial security for required bond payments for the parking structures. The parking program has experienced dramatic growth over the past two years, with the completion and operation of the Palm Street Structure and the scheduled completion of the Marsh Street Structure later this year. Prior to the construction of the two structures, technical studies (IBI 1986) projected the revenues needed from garage operations, parking meters, and parking citations in order to maintain a positive cash flow for the parking program. To date, the program has not met the anticipated figures from garage operations and parking meter rates, primarily due to delayed completion of the. Marsh Street Structure and the lengthy time required for meter rate conversion. As a result, the parking program is currently facing an annual deficient of nearly $4.00,000, which means it must rely on interest income to maintain its solvency. The latter income will discontinue after the Marsh Street Structure is completed, thereby, necessitating the need to identify new sources of. revenue. city Of sap Luis OBISPO WiS COUNCIL AGENDA REPORT Council Agenda Report Page 2 This negative cash flow problem was presented to Council as part of its February 26 study session regarding future parking structures in downtown. After considerable discussion about if and where to build another structure, it was decided that the Downtown Plan must be completed before an informed decision can be made about future sites. In the interim, part of the final action plan from the study session included developing a financial program to correct the revenue short-fall for the present parking program. Although the sources of revenue must be multi-faceted in order to off-set the total deficiency, a large portion of this can be obtained from one source. By depositing all of the parking citation money into the parking fund, over 40% ($160,000) of the short-fall can be eliminated. This can be accomplished by a minor amemdment to the current Municipal Code governing the disposition of fines and forfeitures, whereby all of the citation money would be deposited into the parking fund. Furthermore, this action would not require an increase in parking fees or fines in order to realize a cash infusion into the parking program. ALTERNATIVES: 1. Deposit all citation revenues into the parking fund. (staff recommendation) PROS Would realize a 40% reduction in the parking program deficiency without a fee or fine increase to the users of parking facilities, and would provide a steady source of income for the parking program. Would indicate to the business community that the city is doing all in its power to fund a viable parking program. CONS The General Fund would have to make-up the revenue formerly supplied to the Street Improvement Fund by the split of parking citation money. 2. Deposit a larger proportion (e.g. 75%) of parking citation revenues into the parking fund. I � ��nni ►WNIII��P � IU city of san tA.s ompo j - COUNCIL AGENDA REPORT Council Agenda Report Page Three PROS Would reduce the current deficiency by approximately 20% without additional fees or fines. CONS General Fund must absorb the loss of parking citation revenue. Business community would not be satisfied with this compromise. 3. Make no chances in the current ratio of parking citation money deposited into the parking fund. PROS General Fund would not be affected by maintaining status quo of a 50-50 split with parking fund. CONS Parking program would continue to face the full $400, 000 deficiency and would have to identify other sources of income such as rate increases to off-set negative cash flow. Business community would not be satisfied with this decision. FISCAL IMPACT: Depositing all revenues from the collection of parking citations into the Parking Fund will substantially reduce the current financial short-fall of the parking program. The projected figure of $160,000 represents 40% of the current deficiency and can be accomplished without inceasing fees or fines. The General Fund will have to absorb funding of this amount to maintain the Street Improvement Fund at. its current level. CONCURRENCES The Parking Management Committee has strongly recommended that all parking citation monies be deposited into the Parking Fund. Finance Department concurs that this change is a good way to reduce the current short-fall in the program without raising parking rates. city of san is oBispo - j COUNCIL AGENOA REPORT Council Agenda Report Page Four CONSEQUENCES OF NOT TAKING RECOMMENDED ACTION If parking citations monies continue to be split between the General Fund (Street Improvement Fund) and Parking Fund, the parking program will continue to face an ongoing deficiency which will have to be off-set by other sources of revenue, primarily higher parking rates. RECOMMENDED ACTION Introduce an ordinance to print amending section 10.64.040 (Desposition of Fines and Forteitures) of the Municipal Code whereby effective July 1, 1990, all monies paid to the city for payment of parking citations would be deposited into the parking fund. Attachment: Proposed Ordinance Approved: City A inistrative Officer Att I e , Finance D rector I LEGISLATIVE DRAFT i ORDINANCE NO. (1990 SERIES) AN ORDINANCE OF THE COUNCIL OF THE CITY OF SAN LUIS OBISPO AMENDING SECTION 10.64.040 (DISPOSITION OF FINE AND FORFEITURES) OF CHAPTER 10.64 (PARKING REVENUES, FINES AND FORFEITURES) OF THE SAN LUIS OBISPO MUNICIPAL CODE BE IT ORDAINED by the City Council of the City of San Luis Obispo as follows: SECTION 1. Section 10. 64.040 of the Municipal Code is hereby amended to read as follows: 10.64.040 Disposition of fine and forfeitures. All fines and forfeitures collected upon conviction or upon forfeiture of bail of any person charged with a violation of any of the provisions of this title, shall be paid into the city treasury and S" shall be deposited -in a speelal fund to -be knewn as the "street improvement frunel" and 59% shall be depesited in another speelal: fund to -be known as the .:;::,...:;.>•.v;:::.:..: "parking fund. " Frei@ the "street impreyement fund" shall be - - - ated sueL as from }.me } L L }L d L }L l moneys fer LL -L..-- and saintenanee of f f l traff2 919"s, of this titie, and the balanee of sueh fund shall be used r pubile streets within the elty—. "Parking fund" moneys shall be distributed for the purposes described in Section 10.64.010. w 1 C' Ordinance No. (1990 Series) Page Two SECTION 2. This Ordinance, together with the ayes and noes, shall be published once in full, at least three (3) days prior to its final passage, in the Telegram-Tribune, a newspaper published and circulated in said City and the same shall go into effect at the expiration of thirty (30) days after its said final passage. INTRODUCED AND PASSED TO PRINT by the Council of the City of San Luis Obispo at a meeting held on the day of 19_, on motion of seconded by and on the following roll call vote: AYES: NOES: ABSENT: MAYOR RON DUNIN ATTEST: CITY CLERK APPROVED: CITY A INISTRATIVE OFFICER CITY ATTO Y FINANCE DIRECTOR PUBLIC WORKS DIRECTOR ORDINANCE NO. (1990 SERIES) AN ORDINANCE OF THE COUNCIL OF THE CITY OF SAN LUIS OBISPO AMENDING SECTION 10.64.040 (DISPOSITION OF FINE AND FORFEITURES) OF CHAPTER 10.64 (PARKING REVENUES, FINES AND FORFEITURES) OF THE SAN LUIS OBISPO MUNICIPAL CODE BE IT ORDAINED by the City Council of the City of San Luis Obispo as follows: SECTION 1. Section 10.64.040 of the Municipal Code is hereby amended to read as follows: 10. 64.040 Disposition of fine and forfeitures. All fines and forfeitures collected upon conviction or upon forfeiture of bail of any person charged with a violation of any of the provisions of this title, shall be paid into the city treasury and 100% shall be deposited into the "parking fund. " "Parking fund" moneys shall be distributed for the purposes described in Section 10.64.010. (Ord. 1100, Sec. '2, 1987: prior code Sec. 3217.3) SECTION 2. This Ordinance, together with the ayes and noes, shall be published once in full, at least three (3) days prior to its final passage, in the Telegram-Tribune, a newspaper published and circulated in said City and the same shall go into effect at the expiration of thirty (30) days after its said final passage. Ordinance No. (1990 Series) Page Two INTRODUCED AND PASSED TO PRINT by the Council of the City of San Luis Obispo at a meeting held on the day of on motion of , seconded by , and on the following roll call vote: AYES: NOES: ABSENT: MAYOR RON DUNIN ATTEST: CITY CLERK APPROVED: CITY AD INISTRATIVE OFFICER I ATORN FINANCE DIRECTOR PUBLIC WORKS DIRECTOR