Agenda

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Item # 4.o.

City Council (FY24)

Meeting Date:	04/23/2024
Department:	Municipal Court
Key Focus Areas:	Financial Health and Organizational Excellence

AGENDA CAPTION:

Consider action on an Ordinance amending Chapter 26, "Courts," of the Addison Code of Ordinances, by adding Section 26-6, "Collection Fees," for the purpose of imposing a collection fee in the amount of thirty percent (30%) of the total amount due to defray the costs of collection of delinquent fines, fees, and costs imposed by the Addison Municipal Court.

BACKGROUND:

In 2017, the Town partnered with Municipal Services Bureau (MSB) to work as our collection vendor for the municipal court. State law allows for courts to contract with 3rd party law firms to assist in clearing outstanding debts and warrants. The code of criminal procedure allows for a court to assess a fee for collection services; 30% of the total amount due/collected. Several years after our agreement began, MSB informed the Town it would no longer be able to provide collection services. After some internal discussion, staff determined the Town would continue to benefit from a professional court collection vendor as part of our key focus area of financial excellence.

Cases that are sent for collection are not eligible for any added fee until they have been delinquent for a full 60 days. Firms are not entitled to any money for non-cash transactions or other dismissals. This fee will defray the cost of collecting and reduce overall warrant numbers. The Town will need to codify the Collection Fee by ordinance before moving on to the firm we have selected.

RECOMMENDATION:

Staff recommends approval of amending Chapter 26 to include "26-6 Collection Fees."

Attachments
Ordinance Collection Fee 26-6
Ordinance Presentation