Presented by Patti Oskvarek Collections Methods

Centralized Collections One area or department to collect the accounts receivables for your City or Town Collections procedures Payment Plan Procedures Settlement Procedures File liens on unpaid debt

Arizona Debt Set Off program Participate in the Arizona Debt Set Off program - HB2236 Fill out the application AZ Department of Revenue will give you City/Town an agency code. Send list of debtors to AZ Department of Revenue

AZ Debt Set Off Program List will need to have the following: agency name, agency number, debtor’s name, amount of debt and social security number of debtor Will need a system or program to obtain social security numbers of the debtor LexisNexis has a product available for government agencies contact: Dan McConnell

AZ Debt Set Off Program Mesa Collected dollars from Transaction Privilege Tax Accounts AR Collected FY $79, Collected FY $61,958.90

Business License Promote to have a business license for your city or town which is renewed annually Business licenses are a great way of keeping track of what kinds of businesses are in your community and no longer in your community Match business license information to the AZ Department of Revenue to verify sales tax revenue Which types of businesses have strived or failed Help with budgeting and economic development

Collections Code Limit Services Don’t renew liquor licenses until all debt is paid Don’t renew specialty licenses until all debt is paid Don’t issue building permits or finalize certificate of occupancy until all debt is paid Don’t give any new services until all debt paid Don’t turn on utilities until all debt is paid Don’t give any special event licenses until debt is paid Don’t renew any contracts until debt is paid

Collection Code Recording of Liens Send a letter giving the debtor 30 days to pay the debt or filing a lien File a lien with County Recorder if debtor owns property in that County File a lien with Secretary of State if business has assets; especially if the business has a liquor license

Collections Code Successor Liability Changes business entities New owner purchases assets New owner using liquor license as interim Purchases business name and/or client list

Collections Code Collections Charges Put together and pass ordinance to pass on collections costs and fees onto the debtor Put in the schedule of fees and charges to pass on collections costs and fees unto the debtor Charge for certified demand letters Charge for attorney costs Charge for collections agency costs

Collection Code Criminal Charges Get approval from City/Town management and council Work with City Prosecutor and Police Department Anticipate complaints Get procedure in place before citations are issued Have very good documentation Debtors who knowingly refuse to pay Ongoing businesses

Proposals: Internal Vendor “do not use” list. Intercepting payments for vendors that owe money. Publication on City’s website Publication in newspaper Filing Judgments

Mesa Internal Vendor Offset FY $110, FY $ 33, FY $ 81, FY $ 31,583.62

Mesa Utility Offset Intercept If there is a debt owed to another department and the customer is getting a refund from a utility deposit or over payment offset the debt and apply to the other departments AR. FY 2007/2008 – $ 43, FY – $114, FY – $ 52, FY 2010 – 2011 – $114, FY 2011 – 2012 – $ 97, FY 2012 – 2013 – $ 22,969.85

Questions?? Comments!! Patti Oskvarek