From 2018 to 2022, Wilmington issued about $42 million in parking and red-light tickets; nearly 25 percent went uncollected, 50 percent was paid to Conduent for managing the red-light program, and 20 percent went to the parking division.
Lower-income residents in Wilmington face financial hardship as the costs and fees from the city rise. In 2022, the Wilmington City Council created the Fines and Fees Task Force to review fees, fines, and administrative sanctions imposed by all departments and recommend reforms for fairness. The task force found that generating revenue from fees and fines is inefficient and that the city’s financial department expenses, which process tickets, have increased by nearly $7 million over the past 20 years. Additionally, water bill fees have risen significantly, with Wilmington residents covering costs for a neighboring county and the city increasingly using the Water/Sewer Fund to pay for general expenses. With 1 in 4 Wilmington households earning less than $25,000 annually, the city’s reliance on fines and fees disproportionately impacts those least able to pay. The task force recommends revising the city budget to better align revenue sources with the ability to pay.
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Key Findings:
- Most cities, like Wilmington, generate less than 1 percent of their general revenue from fines; in 2022, Wilmington generated 4.4 percent.
- Wilmington’s revenue from fines and forfeitures rose from 2.8 percent in 2004 to 4.4 percent in 2022.
- From 2018 to 2022, Wilmington issued over 450,000 parking and red light tickets.
- From 2018 to 2022, Wilmington issued about $42 million in parking and red-light tickets; nearly 25 percent went uncollected, 50 percent was paid to Conduent for managing the red-light program, and 20 percent went to the parking division.
- Conduent receives a 30 percent commission on all revenue from booting.
- In 2022, the city’s Water/Sewer Fund spending on other departments increased by 43 percent, paying $7.5 million in city expenses.
- Almost 30 percent of residential water/sewer customers are delinquent on their water bills.
Recommendations:
- Stop harmful collection practices such as ending the practice of towing and booting cars for delinquent payments and adding penalties to people who can’t pay because of limited income.
- Revise vendor contracts to reduce harm and reduce costs.
- Adjust fees to cover only the costs of providing the service.