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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%.