The city put out requests for proposals based on the data from a city system query to show closed utility accounts with a balance of $50 or more as of mid-January 2019. All the chosen accounts are less than three years in age.
The query returned information from 12,541 accounts with an average balance owed of $525, according to Ashley Simpson, revenue director for the city. Those accounts represent about 3% of total billings over that three-year period.
The delinquent balances include both commercial and residential accounts.
The accounts have not been cross-checked for bankruptcies which would preclude collection, Simpson said.
City COO Bret Bell said many of the accounts are from renters who move without paying what they owe.
In an email, Simpson said the accounts used to prepare the request for proposals may not be the list used to begin collections.
″…our next step will be to work with the vendor to create guidelines that will best lead to successful collections,” Simpson wrote.
Plans are for Professional Credit representatives to attend a council workshop before collections begin.
This is the first time the city has contracted with an outside service for debt collection. The contract term runs through Dec. 31, 2020.
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