Spring Hill leaders are set to discuss Monday evening a resolution that would hire ACSI Inc. to carry out debt collection services on behalf of the city.
Currently, the city of Spring Hill does not have a contract with any debt collection agency and instead facilitates collecting unpaid utility bills and fines through repeated notices sent out by city staff. In the packet for Monday’s meeting, the resolution reads that most outstanding debts “have not been aggressively pursued due to a lack of available staff time and insufficient up-to-date customer information.”
The resolution also reads that the city currently has roughly 400 utility accounts with outstanding balances older than four months for a total amount due of $55,000, and $6,000 in unpaid court citations for this year.
Under the proposed contact with ACSI Inc, the collection fee would see 22% of collected debt go towards ACSI Inc, with the remaining percentage go towards the city. A proposed amendment also mentioned in the resolution could potentially see further collections fees charged to past-due accounts to account for the 22% collection fee.
The resolution reads that city staff recommend approving the resolution, which is set to be discussed Monday evening at the Board of Mayor and Aldermen work session and eventually voted on by city leaders on at a voting meeting on Nov. 18.