R2023-276 Resolution Adopting an Intergovernmental Agreement Between the City of Decatur, Illinois and the Illinois State Comptroller Concerning the Local Debt Recovery Program

Home Browse Search

Financial Management DATE: 12/18/2023 MEMO: TO: Honorable Mayor Moore Wolfe and City Council Members FROM: Scot Wrighton,City Manager Ruby James,CFO and City Treasurer SUBJECT: Resolution Adopting the Intergovernmental Agreement concerning the Illinois State Comptroller Local Debt Recovery Program SUMMARY RECOMMENDATION: It is recommended that the City Council approve the attached resolution adopting the Intergovernmental agreement between the Illinois State Comptroller and the City of Decatur, Illinois, concerning the Local Debt Recovery Program This will also grant the CFO the authority to enroll the City of Decatur in the Illinois State Comptroller Local Debt Recovery Program for the purpose of collecting past due accounts for the City of Decatur, primarily parking tickets, ordinance violations, court fines and fees,licensing fees,food and beverage taxes,utility bills,and any other charges levied by the City of Decatur. BACKGROUND: Currently,the City of Decatur sends a notice to residents and businesses if they are more than 30 days past due on their debt to the City. After another 30 days past due, the debt is turned over to a collection agency or placed with the City's counsel for further action towards debt collection. Often the debt can go uncollected. Current outstanding parking tickets are over $1 million. Current outstanding utility bills are over$720,000. The Illinois State Comptroller's Office has at their disposal an extensive set of options with which to collect debt for those who enroll in their program Among the options are: Income tax refunds State employee paychecks State vendor contracts Lottery Unclaimed property Debt must be less than 7 years old and more than$10. Debtor has 60 days to make a protest and defend their position. The associated fee of$20 for placing the debt with the Illinois State Comptroller will be collected from the debtor. The Intergovernmental Agreement with Illinois State Comptroller's Office has been reviewed by City Counsel and the requirements for the program have been met. The City currently uses Midwest Credit Collections to help collect outstanding debt. Accounts currently at the collection agency can be sent to the State Comptroller for further collection efforts while continuing to utilize Midwest Credit Collections as well. The Council directed staff to move forward with this measure as an additional strategy for fairer debt collection and to reduce the amount of delinquencies left behind by tenants(when the new policy on deposits was approved). POTENTIAL OBJECTIONS: No known objections. INPUT FROM OTHER SOURCES: