Meter Math Adds Up To Big Bucks
City, Meter Company Both Profit From Resumed Enforcement
With Chicago Parking Meters, LLC resuming meter enforcement again Monday, perhaps some mathematical insight will shed some light on the politics.
According to company sources, the new meter company sees enforcement as a key component of revenue.
CPM wants heavy enforcement so drivers are scared into feeding their meters. The reasoning is, logical motorists would prefer to pay a few bucks to the meter than risk a $50 expired meter ticket from the city.
When drivers feed their meters, it’s called compliance. The more people who comply (dropping quarters into meter pay boxes) the more revenue the company generates.
Sources claim that for fiscal year 2010, the company expected its enforcement efforts to increase compliance to a point that would add a cool $1 million to their bottom line. So, it’s not surprising the company wants to have their enforcement teams out on the streets ASAP.
But the city benefits too. In fact more so.
Even when CPM ticket writers issue violations, it’s the City of Chicago that gets all the revenue from the fines.
So, let’s do a little math.
SERCO’s (the contractor handling enforcement for CPM) enforcement personnel average over 6 tickets per hour according to sources in the Dept. of Revenue.
With, on the low end, five new CPM ticket writers on the street per week, they will generate 240 expired meter tickets per day, or 1200 tickets per week, or 31,200 tickets by the end of the year.
This translates into $1.56 million in revenue for the city by the end of 2010.
But wait…it gets even better in 2011.
That’s because, CPM, according to the Dept. of Revenue, plans to have 15 people writing tickets by the end of 2010.
This could translate into 187,200 additional parking tickets or, $9.3 million dollars in fines that Mayor Daley desperately needs to fill his gigantic budget hole.
See, who said you’d never use math in the real world back in high school?