By that you mean the fines should be made much higher, right? Because traffic crashes have a huge economic cost.

Set the fines to any level, it doesn't matter.

I only mean that all revenues collected from the fines must be distributed to the public at large. They must never be treated as a revenue source for the government.

Sin taxes are meant to reduce bad behavior - or incentivize good behavior. Ideally you'd collect $0 in red-light fines because everyone's following the law. If some politician's budget or private company's revenue stream depends on traffic fines they have adverse incentives. I don't want my city council member voting against traffic safety initiatives because it makes people better drivers and that means less money for some other city program.