If it's a city law, it goes into the city treasury. Every time I see someone run a red and set off the traffic camera, I think "well, the city just made $500!"
My wife got a speeding ticket for going 68 in a 55 zone. I'm not gonna tell you how I persuaded the judge to drop the charge, but I gotta admit, it was clever. Poor Tiffin, Ohio didn't get any of our money that day!