Royal Oak Could Gain $850,000 Under New Parking Ticket Law

A recent change in a state law regulating the issuance and renewal of driver's licenses could generate more than $850,000 in revenue for Royal Oak. It is also likely to have a big impact for many municipalities throughout the state.

Discussion about Senate Bill 0130 began in the state Legislature last year but it just gained approval and was signed into law recently. Essentially, the bill amended the number of unpaid parking tickets a licensed driver may have before the Secretary of State will not renew the license.

The law previously allowed drivers to have up to six unpaid tickets before license renewal would be denied; the amendment lowered that number to three.

In Royal Oak, approximately 7,000 people have three to five unpaid parking tickets, Court Administrator Gerald Tarchala said. Notices have been sent by the State of Michigan to those with multiple tickets issued in the city of Royal Oak, warning them of the change in the law and the risk of nonrenewal/suspension, Tarchala said.

The impact of the law, while positive for the bottom line of cities, may create a flurry of activity in the courts as drivers rush to pay their tickets. There are approximately 23,000 unpaid parking tickets in Royal Oak and the value of those tickets is about $850,000, according to figures shared with Royal Oak Patch.

Why the change in allowable tickets?

State Sen. David Hildenbrand, R-Lowell, introduced the bill for the reduction in the number of allowable tickets. He said the idea came about while he was working with officials from Grand Rapids, where there were between $3 million to $4 million in unpaid parking tickets.

"We all hate getting parking tickets obviously, but if you do, you have an obligation. Driving is a privilege and paying a parking ticket goes along with all of the other responsibilities," Hildenbrand said, listing vehicle registration, license plates and insurance as some of the other responsibilities of owning and operating a vehicle.

Considering the financial difficulties most cities are facing, the revenue owed to the cities by drivers very well could be financially helpful, Hildenbrand said.

Essentially, anyone with three or more unpaid parking tickets will be flagged in the Secretary of State's system and the next time their driver's license must be renewed, officials will decline the renewal.

The renewal will not be processed until the driver addresses the unpaid tickets. In Michigan, driver's licenses are renewed every four years.

Parking generates millions for Royal Oak

Royal Oak is king when it comes to parking tickets. It issued 99,150 tickets last year, while nearby Birmingham gave out 31,844, 15,529 tickets were issued in Ferndale and 3,623 in Berkley, according to deadlinedetroit.com.

While it's fair to say no one likes getting tickets, having a robust downtown does generate a lot of parking revenue for the city.

According to Julie Rudd, director of finance for the city of Royal Oak, $2.8 million of revenue from parking meters and garages is budgeted for fiscal year 2011-12. Based on a policy, $1.24 million of that revenue is budgeted to be transferred to the general fund in fiscal year 2011-12, Rudd said.

What about parking tickets? Parking violations are budgeted at $900,000 in fiscal year 2011-12, Rudd said.

"Our downtown parking system does generate about $2.15 million in revenue per year for the general fund; in turn about 70 percent of that fund pays for police and fire, including paramedics," City Commissioner Jim Rasor said.

Royal Oak is lucky to have visitors who are willing to pay for parking to enjoy a "very convenient, safe and fun destination," he said.

For those who grumble about parking tickets, Rasor has a suggestion: "If you want to avoid getting a ticket, then just check out the map on the city website and park in one of our three structures for a flat fee."

How to pay parking tickets

In Royal Oak,  accepts payment by cash, check (unless your driver's license has been suspended), money order, credit cards (Visa or Mastercard) or cashier's check. For more details, check the city website.