City council members threw their support Monday night behind a campaign to convince the Insurance Corporation of British Columbia to collect unpaid parking fines on behalf of municipalities at the time a driver's insurance must be renewed.
As it stands, just a fraction of outstanding fines the city has levied have been collected, according to a report to council from bylaw services manager Fred Crittendon.
Over 2 1/2 years ending in June, bylaw services has sent $396,269 to a collections agency which, in turn, had recovered $89,612, or 22.6 per cent, of that total. And of the total sent to collections, $308,432, or 77.8 per cent, was related to parking and traffic bylaw offences.
Moreover, the agency receives 26 per cent of the fines collected to cover their costs.
"If ICBC would collect unpaid bylaw fines on behalf of municipalities at the time of auto insurance or driver's licence renewal, it would lead to more bylaw fines being collected and would increase the non-tax revenue for the municipalities," Crittendon said.
"Instead of waiting years to potentially collect on fines, municipalities would see the majority of revenue collected annually at the time of vehicle registration and basic insurance renewal."
Crittendeon said an agreement could be reached to allow ICBC a share of the revenue collected and noted a similar arrangement exists between Alberta Registries and municipalities in that province.
"Another option would be to have ICBC charge an administration fee to cover costs that the debtor would pay at the time of insurance or driver's licence renewal," Crittendon added.
In May, a resolution along the same line from the Resort Municipality of Whistler was endorsed at the Lower Mainland Government Association annual general meeting and will be brought to the Union of British Columbia Municipalities convention in September.
The idea drew unanimous support from Prince George city council on Monday night.
Coun. Garth Frizzell called the 26-per-cent fee paid to the collection agency "outrageous."
"It's certainly a win-win, because I don't think we're going to get this service for free but we can certainly get it cheaper than we're getting now," said Coun. Jillian Merrick.
Coun. Murry Krause said the step could translate into a lighter burden on local residents when it comes to property taxes.
In his report, Crittendon also said bylaw services has the authority to tow away from public property the vehicle of anyone who has three or more unpaid parking tickets. But while the owner would then have to pay the towing fee to get the vehicle back, the actual outstanding fines would remain uncollected.
Crittendon said the city can also arrange for a payment hearing through small claims court but staff must still have to file the claims individually, serve the debtor in person and attend the hearing, which could take several days of staff time with the concurrent cost.
