Title
IOC Local Debt Recovery Program - IGA Amendment
History
Public Act 097-0632, signed into law in December 2011, created the Local Debt Recovery Program that allows the Illinois Office of the Comptroller (IOC) to enter into Intergovernmental Agreements (IGA) with units of local government to assist in the collection of unpaid debts due to the local government. Prior to the IOC issuing a state tax refund, commercial payment, state payroll check, or lottery check, the amount owed to the local government, plus an administrative fee, will be deducted from the payment and deposited in the Comptroller's Local Debt Recovery Trust Fund. The debtor will be provided with written notice of the action and has 60 days to protest the deduction. If no protest is made or the protest is denied, the amount owed is transferred to the local government. Once a debt is submitted to the IOC, the debt remains outstanding for a period not-to-exceed 7 years (from the initial date of issuance of the debt).
In February 2012, when the IOC launched this program, the Village submitted a test file of over 19,000 outstanding parking tickets that the IOC matched against income tax refunds, commercial payments, state payroll checks and lottery payments. In summary, approximately 2,800 of the records submitted matched against payments made to the debtors, providing an offset amount (amount that would have been paid to the Village) of approximately $472,000.
In July 2012, the Village Board approved an Intergovernmental Agreement (IGA) between the Village and the Illinois Office of the Comptroller allowing the Village to participate in this program. Although the Village submitted all of the forms necessary to begin our participation, a number of general issues with the program were being worked through at the IOC and implementation of our participation was stalled. Staff recently reached out to the IOC, and we are once again on track to implement our participation in time for the u...
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