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  • FeeDom

    As predicted, not only are fees and penalties exploding upward but fees we never dreamed of are becoming our New Reality. FIRE baby....

    April 11, 2009
    Cities Turn to Fees to Fill Budget Gaps

    By DAVID SEGAL

    After her sport utility vehicle sideswiped a van in early February, Shirley Kimel was amazed at how quickly a handful of police officers and firefighters in Winter Haven, Fla., showed up. But a real shock came a week later, when a letter arrived from the city billing her $316 for the cost of responding to the accident.

    “I remember thinking, ‘What the heck is this?’ ” says Ms. Kimel, 67, an office manager at a furniture store. “I always thought this sort of thing was covered by my taxes.”

    It used to be. But last July, Winter Haven became one of a few dozen cities in the country to start charging “accident response fees.” The idea is to shift the expense of tending to and cleaning up crashes directly to at-fault drivers. Either they, or their insurers, are expected to pay.

    Such cash-per-crash ordinances tend to infuriate motorists, and they often generate bad press, but a lot of cities are finding them hard to resist. With the economy flailing and budgets strained, state and local governments are being creative about ways to raise money. And the go-to idea is to invent a fee — or simply raise one.

    Ohio’s governor has proposed a budget with more than 150 new or increased fees.

    Wisconsin’s governor, James E. Doyle, has proposed a charge on slaughterhouses that would be levied on the basis of each animal slaughtered. He also wants to more than triple the application charge for an elk-hunting license to $10, an idea that has raised eyebrows because the elk population in the state is currently too small to allow an actual hunting season.

    Washington’s mayor, Adrian M. Fenty, has proposed a “streetlight user fee” of $4.25 a month, to be added to electric bills, that would cover the cost of operating and maintaining the city’s streetlights.

    New York City recently expanded its anti-idling law to include anyone parked near a school who leaves the engine running for more than a minute. Doing that will cost you $100.

    Nothing, it seems, is off the table. In Pima County, Ariz., the County Board of Supervisors increased an assortment of fees, including the cost of AIDS testing.

    In some cases, towns say they are merely enforcing rules that have long been on the books. For the first time in years, for instance, officials at Londonderry, N.H., have mailed notices to dog owners reminding them to renew their annual dog licenses, which cost $6.50 apiece, or face a $25 fine. Town leaders think the get-tough approach could raise an additional $20,000, but Meg Seymour, the town clerk, is dreading local reaction. When the town last sent out fine notices, in 2002, the calls to her office were vicious.

    “Let’s just say that we’re the ones who take the venting,” she said. “You have no idea.”

    If past patterns hold, the new wave of fees is just getting started.

    If you date the start of the downturn to last September, the ticket-writing is just getting under way. And New Yorkers can expect more days like the one in mid-March, when the police wrote 9,016 driving-while-phoning tickets within 24 hours, roughly 20 times the usual number.

    The “accident response fee” idea could spread, too. A company in Dayton, Ohio, called the Cost Recovery Corporation specializes in setting up collection systems for municipalities that bill for police and fire responses. (The company keeps 10 percent of billings.) Inquiries have tripled in the last year, says the company’s president, Regina Moore.

    “What we’re hearing from towns is, ‘The taxpayers are all over us; they don’t want to surrender more tax money,’ ” she said. “And response fees are basically a form of restitution, like paying for a stay in jail.”

    In Winter Haven, the accident response fee seemed to leaders to be a reasonable way to help finance the police and fire departments, but so far only 20 percent of the $32,000 that has been billed to at-fault drivers has been collected.

    “We chose not to contract out the collection part of this, and frankly, because of staff cuts, we don’t have enough people to handle all the paperwork,” says Joy Townsend, the city’s communications officer. “We’re now evaluating how cost-effective this program is.”

    Ms. Kimel, the S.U.V. driver in Florida, will not make the numbers look any better. She has no idea whether the city will come after her for that $316 bill, but she doesn’t care.

    “I’m not paying,” she said, “because it isn’t fair.”

    Give'em hell, Kimel baby.

    http://www.nytimes.com/2009/04/11/bu...ef=todayspaper

  • #2
    Re: FeeDom

    Originally posted by don View Post
    As predicted, not only are fees and penalties exploding upward but fees we never dreamed of are becoming our New Reality. FIRE baby....

    Ms. Kimel, the S.U.V. driver in Florida, will not make the numbers look any better. She has no idea whether the city will come after her for that $316 bill, but she doesn’t care.

    “I’m not paying,” she said, “because it isn’t fair.”

    Give'em hell, Kimel baby.

    http://www.nytimes.com/2009/04/11/bu...ef=todayspaper
    The fee isn't fair--it's just another way to extract money from law-abiding citizens who are usually too meek (and busy trying to earn a living) to challenge the crooked system.

    Ms. Kimel's refusal to pay is a mild reaction. Consider the reactions of Americans in the Whiskey Rebellion, from the Encyclopaedia Britannica Blog:
    When confronted by the writs and warrants and threats of federal officials, the frontiersmen reacted violently. They ambushed tax collectors in the forests, stripping them naked then tar-and-feathering them. When a wealthy Pennsylvania landowner, General John Neville, guided a federal marshal to the homes of poor farmers who were delinquent in paying the whiskey tax, between 500 and 700 angry, well-armed men attacked his manor house and burned it to the ground. Neville escaped by fleeing out the back door and hiding in a ravine.
    Perhaps elected officials today need to be reminded for whom they really ought to represent.

    Comment


    • #3
      Re: FeeDom

      Originally posted by don View Post
      As predicted, not only are fees and penalties exploding upward but fees we never dreamed of are becoming our New Reality. FIRE baby....

      April 11, 2009
      Cities Turn to Fees to Fill Budget Gaps

      By DAVID SEGAL

      After her sport utility vehicle sideswiped a van in early February, Shirley Kimel was amazed at how quickly a handful of police officers and firefighters in Winter Haven, Fla., showed up. But a real shock came a week later, when a letter arrived from the city billing her $316 for the cost of responding to the accident.

      “I remember thinking, ‘What the heck is this?’ ” says Ms. Kimel, 67, an office manager at a furniture store. “I always thought this sort of thing was covered by my taxes.”

      It used to be. But last July, Winter Haven became one of a few dozen cities in the country to start charging “accident response fees.” The idea is to shift the expense of tending to and cleaning up crashes directly to at-fault drivers. Either they, or their insurers, are expected to pay.

      Such cash-per-crash ordinances tend to infuriate motorists, and they often generate bad press, but a lot of cities are finding them hard to resist. With the economy flailing and budgets strained, state and local governments are being creative about ways to raise money. And the go-to idea is to invent a fee — or simply raise one.

      Ohio’s governor has proposed a budget with more than 150 new or increased fees.

      Wisconsin’s governor, James E. Doyle, has proposed a charge on slaughterhouses that would be levied on the basis of each animal slaughtered. He also wants to more than triple the application charge for an elk-hunting license to $10, an idea that has raised eyebrows because the elk population in the state is currently too small to allow an actual hunting season.

      Washington’s mayor, Adrian M. Fenty, has proposed a “streetlight user fee” of $4.25 a month, to be added to electric bills, that would cover the cost of operating and maintaining the city’s streetlights.

      New York City recently expanded its anti-idling law to include anyone parked near a school who leaves the engine running for more than a minute. Doing that will cost you $100.

      Nothing, it seems, is off the table. In Pima County, Ariz., the County Board of Supervisors increased an assortment of fees, including the cost of AIDS testing.

      In some cases, towns say they are merely enforcing rules that have long been on the books. For the first time in years, for instance, officials at Londonderry, N.H., have mailed notices to dog owners reminding them to renew their annual dog licenses, which cost $6.50 apiece, or face a $25 fine. Town leaders think the get-tough approach could raise an additional $20,000, but Meg Seymour, the town clerk, is dreading local reaction. When the town last sent out fine notices, in 2002, the calls to her office were vicious.

      “Let’s just say that we’re the ones who take the venting,” she said. “You have no idea.”

      If past patterns hold, the new wave of fees is just getting started.

      If you date the start of the downturn to last September, the ticket-writing is just getting under way. And New Yorkers can expect more days like the one in mid-March, when the police wrote 9,016 driving-while-phoning tickets within 24 hours, roughly 20 times the usual number.

      The “accident response fee” idea could spread, too. A company in Dayton, Ohio, called the Cost Recovery Corporation specializes in setting up collection systems for municipalities that bill for police and fire responses. (The company keeps 10 percent of billings.) Inquiries have tripled in the last year, says the company’s president, Regina Moore.

      “What we’re hearing from towns is, ‘The taxpayers are all over us; they don’t want to surrender more tax money,’ ” she said. “And response fees are basically a form of restitution, like paying for a stay in jail.”

      In Winter Haven, the accident response fee seemed to leaders to be a reasonable way to help finance the police and fire departments, but so far only 20 percent of the $32,000 that has been billed to at-fault drivers has been collected.

      “We chose not to contract out the collection part of this, and frankly, because of staff cuts, we don’t have enough people to handle all the paperwork,” says Joy Townsend, the city’s communications officer. “We’re now evaluating how cost-effective this program is.”

      Ms. Kimel, the S.U.V. driver in Florida, will not make the numbers look any better. She has no idea whether the city will come after her for that $316 bill, but she doesn’t care.

      “I’m not paying,” she said, “because it isn’t fair.”

      Give'em hell, Kimel baby.

      http://www.nytimes.com/2009/04/11/bu...ef=todayspaper


      America. The land of the fee, and the home of the [debt] slave.

      Comment


      • #4
        Re: FeeDom

        I recently made a reservation for a rental car in California, and was surprised to see all of the fees they attach to it:

        Tax 9.25%
        Airport concession fee recovery: 11.1%
        Vehicle licensing cost recovery: $15.39
        Transportation and facilities fee: $17.50
        CA tourism commission assessment: 2.5%
        Energy surcharge: $1.03

        Comment


        • #5
          Re: FeeDom

          Originally posted by Sharky View Post
          I recently made a reservation for a rental car in California, and was surprised to see all of the fees they attach to it:

          Tax 9.25%
          Airport concession fee recovery: 11.1%
          Vehicle licensing cost recovery: $15.39
          Transportation and facilities fee: $17.50
          CA tourism commission assessment: 2.5%
          Energy surcharge: $1.03
          nice. the total? the fees as a % of the total? let me guess... 50%?

          Comment


          • #6
            Re: FeeDom

            Vehicle licensing cost recovery: $15.39 They are charging for their cost to register the vechicle. Nice.

            Airport concession fee recovery: 11.1% They are charging for their space. Nice.

            CA tourism commission assessment: ?


            Sorry Metal. I really didn't notuce you used the word nice. I guess the phrase just fit.
            Last edited by cjppjc; April 12, 2009, 07:40 PM. Reason: Apology

            Comment


            • #7
              Re: FeeDom

              Originally posted by metalman View Post
              nice. the total? the fees as a % of the total? let me guess... 50%?
              Close. 53.8%!

              I noticed a while back that overseas car rentals have started charging extra if you want to apply the rental to an airline frequent flyer account.

              They also include the disclaimer "Additional fees or surcharges may be applied at time of rental." -- so I guess I shouldn't be surprised that even their disclosed fees don't add up to the difference between the stated rental rate and the "approximate rental charge." I guess they are just totally throwing out all kinds of accounting now, not just on their published "earnings."

              This reminds me of those eBay sellers who sell items for $1 with $10 in shipping fees....
              Last edited by Sharky; April 12, 2009, 09:12 PM.

              Comment


              • #8
                Re: FeeDom

                Originally posted by Sharky View Post
                Close. 53.8%!

                I noticed a while back that overseas car rentals have started charging extra if you want to apply the rental to an airline frequent flyer account.

                They also include the disclaimer "Additional fees or surcharges may be applied at time of rental." -- so I guess I shouldn't be surprised that even their disclosed fees don't add up to the difference between the stated rental rate and the "approximate rental charge." I guess they are just totally throwing out all kinds of accounting now, not just on their published "earnings."

                This reminds me of those eBay sellers who sell items for $1 with $10 in shipping fees....
                lucky guess. yuk!

                pls send note to mish re deflation forecast.

                Comment

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