re: is this normal - 3 tier system for redlights The structure...

re: is this normal - 3 tier system for redlights The structure of contracts with individual cities varies widely - so much so that it is hard to say what is "normal". In some cases, State law dictates that a portion of the revenue goes to some State body; in others, the contract calls for a fixed monthly fee. Others again, have a base rate plus a fee per citation issued, and even those based on number of citations differ on the distribution between the city and the RLC supplier, and on whether the charges are based on citations issued, or citations actually paid.

I'm sure there are a few other combinations I have forgotten, and quite a few more I have not heard about, but the important thing to remember is that the Redflex contracts usually result in a revenue of about $US5K per month or more. A quick look at the Annual Report, due out tomorrow or Wednesday, will confirm this. Most of the competitors do not achieve anywhere near that average revenue, which might be one of the reasons most of them are losing money.