Local Debt Recovery Program

On May 10, the City received its first remittance from the Illinois Comptrollers’ Office Local Debt Recovery (LDR) Program for $5,719.85. As of May 29, City has received three remittances for a total of $12,188.74. As of that date, the total dollars by the LDR Program matched $170,203.50 due to the City. This is a match rate of 45% of all debt submitted by the City to the program to date, representing 7,809 totaling outstanding collection records. All of the records concerned unpaid parking fines (and some fees). Staff submitted those records first because parking has the largest amount of unpaid debt among all City functions. Staff will begin to submit other types of debt after taking some more time to identify and resolve any kinks in managing the program. 

This past October the Council authorized City participation in the Local Debt Recovery Program. The program allows the City to submit outstanding debt to the Comptroller’s Office for attempted collection. The Comptroller’s Office collects the debt by deducting it from State tax returns (primarily income taxes), employee paychecks, and lottery winnings. Once the City submits the data, the Comptroller’s Office attempts to match it with people due to receive one of those types of payment. If matched, the money is transferred to the City after a 60-day notification period. That gives time for the people whose money was withheld to dispute the withholding or pay the City directly.