Adams County committee weighs 5% monthly late fee for finance-issued invoices; decision deferred

The Adams County Administrative & Finance Committee discussed a finance department proposal to charge a 5% late fee per month on invoices the county issues, with a recommended effective date of Jan. 1, 2026.

Committee members said the finance department already handles invoicing for several offices — including the medical examiner, the county clerk and the treasurer — and that the department wants to align invoice late fees with the solid waste department’s 5% per month rate. Finance staff said they are testing how the county financial system would apply the charge and whether it would compound monthly.

“We're trying to get a late fee established, similar to that of solid waste,” Finance Director Kyle said, describing the departments currently invoiced and the recommendation to implement the fee at the same rate. Kyle said the implementation date of Jan. 1, 2026 would allow time to set the fee up in the system.

Supervisor Kuparski asked whether any late fee currently exists; Kyle replied there is no late fee now. Supervisor Edwards and other supervisors said 5% compounded monthly — which would total about 60% annually — would be unusually high and suggested legal review before adopting that structure. Edwards said, “I have to agree with the supervisors who have harvested it. I think 5% is a bit steep, especially if it's a compounded.”

County administration framed the fee as an incentive to encourage timely payment and noted municipalities and some outside entities have been slow in remitting payments.

Committee members noted practical timing issues for municipal pay cycles: a town that only meets monthly may not be able to approve payment of a county bill before a late-fee trigger. Supervisors also asked corporate counsel to review statutory limits on late fees and whether a different percentage or single noncompounded charge would be more appropriate.

The committee did not take a formal vote on the proposal. Members directed staff and corporate counsel to review legal limits and bring the item back for the committee to consider at next month’s meeting.

The committee moved on to other business after scheduling the item for the next meeting.