Explanation
This Ordinance is submitted to allow the various City Departments and elected officials to impose an "administrative" fee for the collection of their delinquent accounts receivable to cover the cost of the services of a private collection agency.
Currently, delinquent accounts receivable which an individual Department, elected official, or the City Attorney's Office on their behalf, have been unsuccessful at collecting, are referred to one of two private collection agencies that this Council has approved. The City pays the agencies a fee for collecting the delinquent debt and the City recovers the amount due minus the agencies' fee.
Under this new process, the City would recover 100% of its outstanding debt, and the fee for collection services would be added to what the debtor owes the City.
Fiscal Impact: This is a self-supporting process. Funds brought in by the private collection agencies would be used to pay the agencies' invoice for services. Costs savings will be proportionate with the amount collected by the private agencies.
Title
To authorize all City Department Directors and elected officials to amend their rules, regulations, or internal procedures to allow for the imposition of an administrative fee to cover the costs of delinquent debt collection by private collection agencies, and to allow for the imposition of that fee upon the delinquent debtor.
Body
WHEREAS, this Ordinance would allow various City Departments and elected officials to impose an "administrative" fee to cover the cost of collection of their delinquent accounts receivable by private collection agencies, and
WHEREAS, the City Auditor and the City Attorney are recommending this new process as an appropriate, and fiscally responsible manner in which to recover the City's cost of collecting its delinquent debt from the actual debtors, rather than continue to pay those costs itself; now, therefore
BE IT ORDAINED BY THE CO...
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