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Home My WebLink About2021-PAD-019 Collection of Overdue Receivables COUNTY OF NEWELL - POLICY HANDBOOK POLICY NO: 2021-PAD-019 TITLE: COLLECTION OF OVERDUE RECEIVABLES ADOPTED: January 21, 2021 (C-26/21) SUPERCEDES NO: 2014-PAD-019 TO BE REVIEWED: PAGE NO: 1 of 2 POLICY PURPOSE: The purpose of this policy is to establish guidelines for collection of overdue receivables. POLICY GUIDELINES: 1. General Receivables: Attempts to contact the customer regarding payment status will be made after forty-five (45) days from the invoice mailing date. General accounts receivable may be sent to a collection agency after one hundred and twenty (120) days. Statements for general accounts receivables are sent out monthly including a memo stating: a. Balances outstanding after one hundred and twenty (120) days may be sent to a collection agency; b. All outstanding invoices must be paid before any further transactions will be allowed; and c. That future purchases will have to be on a prepaid basis. 2. Utility Receivables: Accounts which are greater than sixty (60) days overdue may have services disconnected. Outstanding utility charges which are greater than ninety (90) days overdue will be transferred to the tax roll. 3. Property Tax Receivables: a. Property Taxes Related to Land – Recovery of property taxes related to land shall be in accordance with the Municipal Government Act, Part 10, Division 8. The fees and costs to register a tax notification against a parcel appearing on the tax arrears list shall be added to the tax account in accordance with the schedule of fees. b. Property Taxes Related to Designated Manufactured Homes – Designated Manufactured Home property taxes are subject to tax recovery under the Municipal Government Act, Part 10, Division 8.1. All costs to recover the property taxes shall be added to the tax account. c. Property Taxes Not Related to Land - Recovery of property taxes not related to land shall be in accordance with Part 10, Division 9 of the COUNTY OF NEWELL - POLICY HANDBOOK POLICY NO: 2021-PAD-019 TITLE: COLLECTION OF OVERDUE RECEIVABLES ADOPTED: January 21, 2021 (C-26/21) SUPERCEDES NO: 2014-PAD-019 TO BE REVIEWED: PAGE NO: 2 of 2 Municipal Government Act. The following procedure will be followed regarding property taxes not related to land: 1. Phone call to the property owner regarding payment status will be made after the final current year tax penalty date. 2. Tax payment agreements may be offered allowing for equal monthly payments of the outstanding balance over a period not exceeding one year, providing future year taxes are paid on time. 3. Send demand letter if tax payment agreement is refused or breached. st 4. After March 1, each year: a. Initiate legal action for balances exceeding $2,500.00. b. Balances of $2,500.00 and under may be sent to a collection agency. 4. Minimum Thresholds for Collection Action and Write-off of Accounts Accounts may only be written off after all attempts at collection have been exhausted. Receivable Collection Action Manager of Council Type Finance approval approval of of write off write off General Send to Collection Agency if Less than or equal Exceeds Receivables balance exceeds $50.00 to $500.00 $500.00 Utilities Transfer to taxes. Send to Less than or equal Exceeds Collection Agency if property sold to $500.00 $500.00 and balance exceeds $50.00 Property Taxes Tax Recovery process MGA part If an error has All amounts, 10, Division 8 or, been made by unless an error County staff made by Tax Recovery process MGA part County 10, Division 9 a) Initiate legal action if balance exceeds $2,500.00, otherwise send to collection agency.