Number
151687
Version
Substitute 2
Reference
Sponsor
ALD. WITKOWSKI, HAMILTON, KOVAC, MURPHY, BAUMAN, BORKOWSKI, AND ZIELINSKI
Title
Substitute resolution relating to the establishment of an Outstanding Debt Work Group.
Analysis
This resolution establishes an Outstanding Debt Work Group to evaluate and make recommendations for improving the City’s policies and practices for collecting delinquent taxes, forfeitures, judgments and fees owed the City.
Body
Whereas, The City’s parking collections vendor reasonably expects to collect only $16.3 million of the City’s $34.6 million in unpaid parking citations as of November, 2015; and
Whereas, The City has 4 separate contracts with third-party vendors to collect delinquent taxes, forfeitures, judgments and fees owed the City; and
Whereas, The City pays different fees for the same collection services under these vendor contracts; and
Whereas, The City has not investigated the possibility of selling unpaid debt owed it to third-party debt collectors rather than simply writing the debt off as uncollectible; and
Whereas, Recent changes in State statutes make it possible to contract with the Wisconsin Department of Revenue to collect delinquent taxes, forfeitures, judgments and fees owed the City at no charge to the City; and
Whereas, The Wisconsin Department of Revenue is expected to be more effective in collecting unpaid debt, especially unpaid parking citations, owed by parties living outside the City of Milwaqukee; and
Whereas, A review and possible update of the City’s current outstanding debt collection practices may result in more effective debt collection at a lower cost, and benefit City residents by making more non-property-tax revenue available to fund City services; now, therefore, be it
Resolved, By the Common Council of the City of Milwaukee, that an Outstanding Debt Work Group is created and shall consist of:
1. Three members appointed by the Common Council President.
2. The Mayor or ...
Click here for full text