44 MOTOR VEmCLE DEPUTY REGISTRARSSome private deputies have income sources o<strong>the</strong>r than <strong>the</strong>ir salary. For example,some private deputy registrars own <strong>the</strong> building that contains <strong>the</strong> deputy registrarbusiness and include <strong>the</strong> rent paid by <strong>the</strong> deputy registrar corporation to <strong>the</strong> owneras a business expense. Similarly, some private deputy registrars lease a car to <strong>the</strong>corporation and include <strong>the</strong> lease amount as an expense. We did not include anyincome (or losses) that deputies may make from renting space or leasing cars to<strong>the</strong> deputy registrar corporation.To interpret deputy registrar incomes, it is important to consider <strong>the</strong> number <strong>of</strong>owners who work for <strong>the</strong> deputy and whe<strong>the</strong>r <strong>the</strong>y work full time. In <strong>the</strong> typicalprivate deputy registrar, <strong>the</strong>re is one owner who works full time. Some privatedeputies are owned by two people who both work for <strong>the</strong> deputy, ei<strong>the</strong>r full timeor part time. In o<strong>the</strong>r cases, <strong>the</strong>re is one owner who works part time and relies onstaff to operate <strong>the</strong> business. The average number <strong>of</strong> full-time owners per deputyis about 1.0 for each size category in our sample.EXPENSES AND REVENUES OF PUBLICDEPUTY REGISTRARSMinnesota has 90 public deputy registrars, including four operated by HennepinCounty (downtown Minneapolis, Southdale, Ridgedale, and Brookdale), four operatedby Anoka County (Columbia Heights, Anoka, Blaine, and St. Francis), andthree operated by Washington County (Stillwater, Woodbury, and Forest Lake). In·our financial analysis, we treated <strong>the</strong> deputies operated by Hennepin, Anoka, andWashington counties as a separate multiple-<strong>of</strong>fice category.Expenses <strong>of</strong> Public Deputy RegistrarsTable 3.1 and Figure 3.1 show how <strong>the</strong> cost per transaction varies with size amongpublic deputy registrars. We found:• In 1992, <strong>the</strong> cost per transaction varied greatly among public deputies,ranging from S2.10 to $6.01.• Larger deputy registrars tended to have lower costs per transactionthan smaller deputy registrars, but <strong>the</strong>re is considerable variationwithin size categories.Among single-<strong>of</strong>fice deputy registrars, large deputies had an average cost <strong>of</strong> $2.76per transaction, compared with $2.94 for medium-l~e deputies, $3.53 for medium-smalldeputies, and $4.15 for small deputies. 5Among deputies that process fewer than 24,000 transactions per year, 38 percent(8 out <strong>of</strong> 21 that we examined) had an average cost exceeding $4 per transaction.The only o<strong>the</strong>r deputies in our sample with a cost <strong>of</strong> more than $4 per transaction5 These differences are statistically significant at <strong>the</strong> a. = .01 level.
DEPUTY REGISTRAR FINANCES 45Table 3.1: Cost Per Transaction for Public Deputy Registrars, 1992Salary andAverage Number Number Transactions Benefits perAnnual <strong>of</strong> in Cost per per <strong>Full</strong> lime <strong>Full</strong> limeCategory Transactions De~uties Sam~le Transaction Em~lo~ee Em~lo~eeMultiple-<strong>Office</strong> DeputiesHennepin 115,000 per deputy 4 4 $4.84 8,500 $31,000Anoka 82,000 per deputy 4 4 3.19 11,100 27,300Washington 45,000 per deputy 3 2 3.42 10,600 25,500Single-<strong>Office</strong> DeputiesLarge more than 60,000 9 9 2.76 12,200 25,800Medium-Large 24,000-60,000 26 12 2.94 10,800 24,100Medium-Small 12,000-24,000 24 11 3.53 8,800 22,600Small less than 12,000 20 10 4.15 6,900 22,200Source: <strong>Office</strong> <strong>of</strong> <strong>the</strong> <strong>Legislative</strong> <strong>Auditor</strong>.Figure 3.1: Cost per Transaction by Size 6f PublicDeputy, 1992Dollars5~--------------------------------------~4321oSource: <strong>Office</strong> <strong>of</strong> <strong>the</strong> <strong>Legislative</strong> <strong>Auditor</strong>.Med Small Med LargeDeputy Sizewere Goodhue County and <strong>the</strong> four deputies operated by Hennepin County, whichspent about $4.84 per transaction at its four service centers. Goodhue Countyclosed its deputy registrar <strong>of</strong>fice in Red Wing at <strong>the</strong> end <strong>of</strong> October 1992 becauseit was losing money and many customers complained about <strong>the</strong> service. Subsequently,<strong>the</strong> county auditor appointed a private individual as deputy registrar.Hennepin County is <strong>the</strong> most notable exception to <strong>the</strong> generalization that largerdeputies tend to have lower costs. It operates 4 <strong>of</strong> <strong>the</strong> 15 largest deputy registrars