One solution to the fiscal pressures on local governments is a more intensive effort to collect delinquent revenues. Nationally, this alternative has been underused. A case study of elgin, illinois, is presented to examine the potential of this approach for the sale of overdue municipal vehicle licenses. To this end, elgin currently uses police roadblocks and two sequential collection letters; however, the noncompliance rate is over 10%. This noncompliance results in a loss of $200, 000 to $400, 000 in revenue. At current levels, roadblocks return $6 in revenue for every $1 of cost; expansion is indicated if police time can be spared. The two collection letters return $6 and $2, respectively, for every $1 of cost. It does not appear that a third mailing would be warranted. Three experiments are suggested to establish costs and revenues: sending collection letters by certified mail, making state registration records prima facie evidence that a sticker is required and using small claims court, and using civilian employees to search parking lots for scofflaws. This paper appears in transportation research record no. 1305, Finance, planning, programming, economic analysis, and land development 1991.
Samenvatting