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FINANCIAL STATEMENT The adoption of an increase in parking penalties and the addition of enumerated parking penalties and processing fees to the Master Fee Schedule will offset the increase in fees that are paid to the state as well as the increase in administrative costs. Based on the average number of parking citations issued in a year by the Police Department (i.e., approximately 1,000 citations), the adoption of the attached resolution will annually increase parking citation penalty revenues approximately $60,000. If the attached resolution is not adopted, the City's general fund will not only annually forego approximately $60,000 in increased revenue but will also absorb an additional $5,000 due to the increase in state mandated penalties. BACKGROUND Parking Citation Penalties: Adoption by City; State Assessed Penalties In 1993, the State of California decriminalized parking citations and transferred the processing of the citations from the court system to the agencies that issue parking citations, such as the City of Pleasanton. When Pleasanton began processing parking citations in 1993, the City amended its Master Fee Schedule to include parking violation penalties. The penalties have not been revised since their adoption. In 2008, the State Legislature enacted Senate Bill 1407 to provide, in part, for enhanced revenues to the State Court Facilities Construction Fund to finance immediate and critical needs construction and renovation projects of court facilities throughout the State. SB 1407 enables the State to issue up to $5 billion in revenue bonds to help pay for courthouse construction and renovation. Repayment costs are estimated at about $300 million annually. The State will obtain a significant share of the costs to finance the bonds by raising various penalties, including those for parking citations. These increases are passed to the agencies, like the City of Pleasanton, that issue parking tickets. Prior to SB 1407, state law provided that Alameda County received $5.00 for each parking citation collected. The following amounts were collected and deposited into the County's funds: $2.00 into the County's general fund (Gov. Code §76000(c)); $1.50 into the County's courthouse construction fund (Gov. Code §76100, AC Board Res. R -91 -705); and $1.50 into the County's criminal justice facilities construction fund (Gov. Code §76101, AC Board Res. R -91 -706). An additional penalty of $1.50 for state courthouse construction was also provided under Gov. Code §70372(b) but Gov. Code §70375 allowed this amount to be offset by Page 2 of 6