City impound lot creates slippery slope of revenue
Warren’s city-run impound yard has generated hundreds of thousands of dollars for city coffers since it first opened in 2021.
Specifically, the impound lot has generated $256,088 since Sept. 2021, according to records provided recently by city Auditor Vince Flask. From our vantage point, that’s money that has been directly removed from the pockets of local tow operators.
That’s just wrong because we believe government never should compete with private business.
According to the city records, income earned by the city from the impound lot includes $2,400 in towing permits, $116,760 in charges paid by people whose vehicles were towed, $48,765 in storage fees for vehicles kept on the impound lot, and $88,163 from vehicles not picked up and sold at auction.
Total expenses incurred by the city for things like a surveillance system, fencing and lighting reached about $56,000.
There have been 1,162 vehicles towed to the city’s impound lot since its opening, according to police records. In 2021, 181 were towed to the city lot; 912 towed to the city lot in 2022; and 69 towed so far in 2023. The majority, 1,114, were picked up by owners or the lien holders.
The city sold 48 vehicles at online auction since opening.
To be clear, Warren detective Chris Clementi said not all vehicles towed within the city are taken to the city-owned lot.
We are glad to hear that, but it still is small consolation for private businesses whose bread and butter involves operating tow yards.
Vehicles either are towed to a contracted third-party impound lot, as was done in the years prior to the city lot, or the city impound lot depending on the circumstances, Clementi said. That includes vehicles without keys or that are inoperable. Instead, only vehicles that are drivable are impounded in the city lot.
Mayor Doug Franklin recently called the tow yard program a “success” and noted that future revenue likely will be even higher.
Council members Ken MacPherson, D-at Large, Helen Rucker, D-at Large, Cheryl Saffold, D-6th Ward, and Ronald White, D-7th Ward, all previously voted against establishing the impound lot.
Some opponents, including MacPherson, have been concerned about the slippery slope that comes with the fact that the money generated from the police-operated lot is set to benefit the police department. Specifically, it is intended to fund a police vehicle replacement program.
We said it then, and our feelings have not changed. We see it as very problematic that police benefit from revenue that they have the power to increase simply by towing and impounding more cars.
Worse, when cities begin competing with their private industry, it likely means revenue lost by the private businesses.
As we’ve said many times before, it is government’s duty to provide essential services — not to set up shop in order to compete with private business. This appears to be just one more avenue for government to police for profit.
editorial@tribtoday.com
