HomeMy WebLinkAbout08595ORDINANCE NO. 8595
AN ORDINANCE AMENDING CHAPTER 2 OF TITLE I OF
THE PUEBLO MUNICIPAL CODE RELATING TO
COLLECTION OF UNPAID DEBTS OWED TO THE CITY
BE IT ORDAINED BY THE CITY COUNCIL OF PUEBLO, that: (brackets
indicate matter being deleted, underscoring indicates new matter being added)
SECTION 1.
Section 1-2-10 of Chapter 2, Title I, Pueblo Municipal Code, as amended, is
hereby added read as follows:
Sec. 1-2-10. Collection of Unpaid Debts.
In addition to any and all other remedies which may be sought by the City
pursuant to any provision of this Code, the City may treat all charges, costs, fees,
penalties, and fines imposed pursuant to any provision of this Code, when due
and unpaid, as a debt due the City, and may recover the amount thereof together
with all interest, penalties, and collection charges, including reasonable attorney
fees, from the debtor. The Finance Department of the City may assign to a third-
party collection agency any debts remaining unpaid to the City ninety (90) days
after becoming due. Remedies for the collection of delinquent debts are
cumulative and the exercise of one shall not bar the exercise of any other.
SECTION 2.
This Ordinance shall become effective upon final passage and approval.
INTRODUCED: May 13, 2013
BY: Chris Kaufman
PASSED AND APPROVED: May 28, 2013
Background Paper for Proposed
ORDINANCE
DATE:AGENDA ITEM # R-6
May 13, 2013
DEPARTMENT:
Finance Department
Deborah Morton , Interim Director of Finance
Law Department
Carla L. Sikes, Assistant City Attorney
TITLE
AN ORDINANCE AMENDING CHAPTER 2 OF TITLE I OF THE PUEBLO MUNICIPAL
CODE RELATING TO COLLECTION OF UNPAID DEBTS OWED TO THE CITY
ISSUE
Should the City Council pass and approve the proposed Ordinance which adds a new
Section 1-2-10, P.M.C., relating to the collection of unpaid debts owed to the City?
RECOMMENDATION
Approve the Ordinance.
BACKGROUND
The City of Pueblo has a large amount of accounts receivables. Currently, each section
of the code prescribes a different method, or methods of collections. The only third
party collection specifically addressed in the Code presently is the filing of a lawsuit.
Filing a lawsuit is not economically worthwhile because of the expense involved. The
addition of Section 1-2-10, P.M.C. would allow Finance to send out unpaid balances
under one umbrella which would streamline the collection process, decrease costs
associated with collection and decrease the amount of staff time spent on managing the
accounts receivables while increasing the amounts actually collected on these
accounts.
FINANCIAL IMPACT
The City should realize increased revenues as a result of the collection process. The
average commission costs for collection services ranges from 18% to 50%.