Collections Methods

1. Collections Methods Presented by Patti Oskvarek 480-644-3570 Patti.Oskvarek@mesaaz.gov

2. 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

3. 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

4. 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 1-937-247-1529 - dan.mcconnell@lexisnexis.com

5. AZ Debt Set Off Program Mesa Collected dollars from Transaction Privilege Tax Accounts AR • Collected FY 2011-2012 $79,759.55 • Collected FY 2012-2013 $61,958.90

6. 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

7. 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

8. 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

9. 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

10. 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

11. 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

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

13. Mesa Internal Vendor Offset • FY 2008-2009 - $110,546.11 • FY 2009-2010 - $ 33,526.46 • FY 2010-2011 - $ 81,848.33 • FY 2011-2012 - $ 31,583.62

14. 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 – $ 43,039.96 • FY 2008-2009 – $114,269.78 • FY 2009- 2010 – $ 52,697.31 • FY 2010 – 2011 – $114,363.27 • FY 2011 – 2012 – $ 97,973.40 • FY 2012 – 2013 – $ 22,969.85

15. Questions?? Comments!!Patti Oskvarek480-644-3570Patti.Oskvarek@mesaaz.gov