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Politics & Government

State Offers La Grange Park a Chance to Collect Up To $446,000 in Debt

Village Board to discuss Aug. 14 enrolling in comptroller's debt recovery program for parking tickets, local ordinance violations, plus penalties.

The state comptroller’s office is offering La Grange Park a chance to recover $446,000 in parking tickets and village ordinance violations fines  plus penalties that are owed to the village.

The Village Board on Tuesday night deferred until  the Aug. 14 work session on signing an intergovernmental agreement with the state for the local debt recovery program. A person or business who owes money to the village would have it deducted from any state income tax refund, lottery winnings, paycheck or state pension he or she receives.

Trustee Marshall Seeder said he had concerns about the effect on state employees and retirees who live in La Grange Park and would hope  the village could look at alternatives.

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Dr. James Discipio, La Grange Park president, contacted Illinois Comptroller Judy  Baar-Topinka after hearing about the program, said Matthew Ryan, deputy director of the program. “You’re mining an opportunity to collect on debt that’s been sitting for a while,’ Ryan told trustees.

Eight or nine municipalities - including Chicago, Springfield and Joliet - already  participate in the program, he said.  Chicago has recovered $10.5 million in money owed and Joliet some $20,000, he said.

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Village Manager Julia Cedillo said she and Phil Kubisztal, deputy police chief, looked at records since Jan. 1, 2006, and found 11,643 outstanding citations for P tickets and local ordinance violations, totaling $265,000 in fines, or $446,000 including penalties.

The money, up to 25 percent of the net income, owed from each person plus a $15 administrative fee  would go into the comptroller’s local debt recovery fund. The person whose money is collected would receive a letter and have 60 days to protest. If the person does not protest, a check will be sent to La Grange Park for that money owed and any other past-due fines that passed the 60-day waiting period.

“We’re seeing a 3 to 5 percent protest rate; very rarely are we wrong,” Ryan said. This has happened with confusion over a senior or junior name, and the money was refunded. “We do all we can to ensure this is an accurate program. We err on the side of the debtor.”

Seeder asked about  other successful bases for successful protest besides the senior/junior issue. Ryan said it has been when two names are identical but the wrong person was targeted. His colleague Joe Frost also cited data entry errors when the wrong date or license plate was entered in the local system or a person  did pay, but local bookkeeping did not record it properly.

Asked by Seeder how long it takes to resolve a protest, Ryan replies the goal is 30 days but the intergovernmental agreement allows longer than that.

Ryan said a local government is limited to debts less than seven years old and an amount over $10. “We didn’t feel comfortable charging $15 to collect $10.” .

The village can use a debt collections agency and the state program, Ryan said. “It’s another tool for you to go out and pursue revenue you’re entitled to.”

Seeder asked whether there are any hardship exemptions built into the law, to which Ryan said the municipality has the right to take names off the lists it submits and set up a payment program privately.

Whether La Grange Park can pick and choose who, such as state retirees, can be targeted In the debt recovery, Ryan told Seeder he would check and get back to Discipio the next day. 

Trustee Rimas Kozica noted the intergovernmental agreement puts a municipality sixth in line - behind the federal and state governments and others - in collecting a debt from a person. Ryan said, “They’d be paid first and you’d be out of luck that year.”

Ryan stressed that it is important for La Grange Park to sign up soon so that the village would be in front of other municipalities looking for money from one person’s check. “You’ll be one of the first enrolled in the pilot program”

The village can leave the program at any time, he said.

Jason Vitell, a resident and village employee, asked about the effect on the credit rating of someone who is paying the village money through the state program. Ryan said either the person will satisfy the debt or successfully protest that he or she is the wrong person being sought. “It will help your credit rating one way or another.”

On a second question by Vitell, Ryan responded the village would not get any money if  the debtor is not receiving money through the state.

About the $15 state administrative fee, resident Fred Weiss said,” It’s a lot to get for $15. Nothing can get done for $15 in a political organization.”     

Ryan concluded, “That revenue’s out there that’ owed to you. It can be a real source of revenue.”

Kozica said, “It looks like it will be a worthwhile program.”

 

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