Local Debt Recovery Update

As of August 13, the City has received $50,219.14 from the Illinois Comptrollers’ Office Local Debt Recovery (LDR) Program. As of that date, the total dollars by the LDR Program matched $179,741.14 due to the City. This is a match rate of 48% of all debt submitted by the City to the program to date, representing 7,807 total 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. 

In September, the Illinois Comptrollers’ Office will begin moving the LDR program to a more user-friendly online system of data management. Staff will begin to submit other types of debt after taking some time transitioning to this new data system and identify and resolve any kinks in managing the program. 

In October 2012, the Council authorized City participation in the LDR Program. The program allows the City to submit outstanding debt to the Comptrollers Office for attempted collection. The Comptrollers’ Office collects the debt by deducting it from State tax returns (primarily income taxes), commercial business payments, State employee paychecks, and lottery winnings. Once the City submits the data, the Comptrollers’ 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.