More than a quarter of a million dollars has been added to Middletown’s coffers in less than two years, largely due to funds generated by the city’s impound lot.

Since April 2011, the Middletown Division of Police has impounded more than 1,700 vehicles for traffic violations, and their fines have added $252,546 to the city’s general fund, said Russ Carolus, finance director.

Most of that money is earmarked for the police and fire departments, he said. The city’s operating budget is $29.7 million, and 72 percent of that, or about $21 million, is the combined budgets for the police and fire departments. Carolus, who retired last week after a 30-year career, said cities are always — especially with the state’s budget cuts — looking for ways to increase revenue without adding significant man hours.

“The more money, the better,” he said, adding the implementation of the impound lot was a “pretty good idea.”

When a motorist in Middletown is cited for a traffic offense — driving while intoxicated, driving under suspension — and their vehicle is towed, it’s taken to the impound lot, the former Orman Building on Broad Street, across the street from the City Building. The administrative fee is $175, and the cost increases $20 for each additional day the vehicle is stored after the first day, said Sgt. David Birk, who oversees the impound lot.

In April 2011, the city contracted with Mark’s Towing, which submitted the lowest bid, to handle its impounded vehicles. Mark’s Towing is reimbursed once a month at $50 per vehicle, meaning the city nets at least $125 per vehicle, more if the owner doesn’t claim the vehicle the next day, Birk said.

Last year, the city towed about three cars a day, according to statistics from the police department. Birk said from April 2011 to the end of the year, 638 vehicles were towed. In 2012, the city’s first full year of operating the lot, 1,080 vehicles were towed, he said. These numbers represent only impounded vehicles, not those towed because they were involved in accidents, Birk said.

Before starting the program, the numerous tow companies in Middletown rotated removing cars to their impound lots, and they handled the administrative duties that included collection of fines and fees.

Middletown, Trenton and Oxford are the three local communities that manage their impound lots, according to the police departments.

Trenton opened its impound lot in 2005, said Lt. Mike Gillen, who followed policies similar to Oxford’s. He said there are two tow companies in Trenton, and they rotate towing the cars. The companies bill the city a flat fee of $100 per car, and the city charges the motorists an additional administrative fee of $100, and $15 per day after the first 24 hours, Gillen said. He said in 2011, the latest figures available, Trenton impounded 308 vehicles, about 50 higher than average. Of those, 273 were retrieved, 27 were scrapped and eight were sold at auction.

All of the other surrounding communities don’t operate impound lots. Instead, the local tow companies rotate picking up the vehicles, and they handle all the paperwork.

Representatives from the local agencies said they were surprised by the number of vehicles being towed in Middletown and the revenue the program generates. They’re considering adopting a similar program, they said.

Birk said the vehicles are stored in a fenced lot near the former Orman Building. There is a motion-activated spotlight nearby, he said. One day last week, there were 25 vehicles and two motorcycles stored in the lot.

Once vehicles are impounded, the registered owners are contacted by the police department, and Birk gives them at least 30 days to retrieve their vehicles. If they don’t pick up their vehicles, the city obtains a salvage title, and the vehicle is sold on an online auction.

Owners are permitted to pick up their vehicles from 8:30 a.m. to 3:30 p.m. — except from noon to 1 p.m. — in the Middletown detective section. All payment must be cash, said Birk, who added that policy was instituted after the department received too many checks with insufficient funds.

Birk said the department does accept checks from rental companies that have had one of their vehicles impounded.

Some owners, who believe their vehicles aren’t worth the cost of the tow and storage fees, never claim them, Birk said. Those vehicles eventually, after their titles clear, are sold on an online auction, www.govdeals.org. The vehicle’s original owner sometimes buy their car back during the auction, Birk said.

Eventually, probably in the spring, the city will expand its impound program to include “junk motor vehicles” that are parked on the street, Birk said. Once the Orman Building is demolished, the city’s impound lot will move to Terry Drive, which offers about twice the space, he said.