City Enrolls in Debt Recovery Program

This past October the Council authorized City participation in the Local Debt Recovery Program (LDRP) with the State Comptroller’s Office. The program allows the City to submit outstanding debt to the Comptroller’s Office for attempted collection. The collection of this debt comes in the form of deductions from State tax returns, State employee paychecks up to 25% of the paycheck each pay period, and State lottery winnings. Once the City submits the data, the Comptroller’s Office attempts to match it with someone receiving one of those methods of payment. If matched, the money is withheld from the payment and then transferred to the City after a 60-day notification period.

The Finance Department has worked with the Public Works Department to pilot the LDRP with outstanding parking fines and fees. The Public Works Department worked with its parking software vendor on a query that extracts the needed data into the Comptroller’s required format. After meeting with representatives of the State Comptroller’s Office and submitting successful test data, the City was admitted to the LDRP program last week. Earlier this week Public Works submitted 8,234 debt records to the program for attempted matching to the Comptroller’s database (Public Works anticipates match rates between 25% and 50% of debt records submitted.). Of the 8,234 submitted, the State matched 2,285 records, representing $149,354 in debt and a 27% match rate, which it will collect on the City’s behalf. Public Works will periodically submit new debt through this program. After a successful launch of Public Works into the LDRP, the Finance Department will begin implementation of other departments into the program.