Chapter 3.56
DELINQUENT AND OUTSTANDING DEBTS
Sections:
3.56.010 Collections authorized.
3.56.010 Collections authorized.
A. The finance director, or his or her designee, is hereby authorized to assign debts owed to the city to a collection agency for the collection thereof. In all instances where a debt is so assigned, all reasonable costs involved in the collection of the debt through use of the collection agency are costs that shall be added to and included in the debt to be paid by the debtor. As used in this chapter, debts owed to the city include, but are not limited to, the following: past due utility charges, fines, assessments, taxes, permit and license fees and charges, miscellaneous billings, penalties, interest, and any other charge or account receivable of whatsoever nature legally imposed by or owing to the city.
B. The amount to be paid for collection services shall be left to the agreement of the city and its collection agency or agencies, but a contingent fee of up to 50 percent of the first $100,000 of the unpaid debt per account and up to 35 percent of the unpaid debt over $100,000 is reasonable, and a minimum fee of the full amount of the debt up to $100.00 is reasonable.
C. No debt may be assigned to a collection agency unless: (1) there has been an attempt to advise the debtor: (a) of the existence of the debt, and (b) that the debt may be assigned to a collection agency for collection if the debt is not paid; and (2) at least 30 days have elapsed from the time notice was attempted. (Ord. 2074 § 1, 2023).
3.56.020 Payment plan.
The finance director, or his or her designee, is authorized to enter into payment plans with individuals who cannot meet their financial obligation to the city in one payment. Such arrangements are at the discretion of the city and may factor in interest and the additional cost of monitoring time payments. (Ord. 2074 § 1, 2023).
3.56.030 Write-off.
No less than 24 months after the original due date, if the receivable remains uncollected, the city may write off the debt, provided:
A. The amount of the receivable is less than $1,000;
B. The finance director has determined that there is no cost-effective means of collecting the account and, if the debt has been assigned to a collection agency, that a collection agency has been unsuccessful in collecting the debt; and
C. The mayor and finance director authorize the write-off.
Any decisions regarding write-off are discretionary with the city and may consider any variety of factors, including but not limited to resources of the city for purposes of attempting collection and aggregate impact of receivables at the time. All debts in the amount of $1,000 or more may only be written off with city council approval. Nothing within this section prohibits city council from authorizing staff to write off other debt. (Ord. 2074 § 1, 2023).