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Iowa council adopts ordinance to use state debt-recovery program for delinquent town bills
Summary
The Town of Iowa on May 12 adopted Ordinance No. 2025-01 to authorize the Louisiana Department of Revenue Office of Debt Recovery to collect delinquent town debts. The ordinance permits offset of state tax refunds and adds a 25% collection fee when payment is recovered through the state program.
Mayor Douglas N. Watkins called a public hearing May 12 and read Ordinance No. 2025-01, which would authorize the Louisiana Department of Revenue Office of Debt Recovery to collect delinquent charges owed to the Town of Iowa under Louisiana Revised Statutes 47:299 et seq. Town Clerk Cynthia Mallett explained the change "is to change the collection agency used to collect the debts owed to the Town of Iowa" and that the state office will replace the town's former vendor.
The ordinance text specifies that overdue charges unpaid 90 days past the due date "shall be subject to collection through the Louisiana Department of Revenue, Office of Debt Recovery, utilizing the state tax refund offset and other available collection programs." It adds that, "should payment be collected through the Louisiana Department of Revenue's Office of Debt Recovery, a collection fee of twenty-five percent (25%) of the total debt will be added to the amount owed by the consumer, in addition to all other charges, interest, and penalties collected."
Council Member Julie Fontenot moved to approve the ordinance; the motion, seconded by Vernessa Guillory, passed unanimously. The clerk recorded YEAS: Julie Fontenot, Vernessa Guillory, Gerald Guidry and Joe Becnel; ABSENT: Daniel Hennigan. The mayor and clerk completed the attestation and certification steps May 13, 2025.
Why it matters: The change authorizes use of the state collection program and a tax-refund offset mechanism that can recover overdue charges for the town but also imposes a statutory 25% collection fee that increases the amount a resident ultimately owes if the state recovers payment.
What’s next: The ordinance becomes effective upon adoption and publication as required by law; the council did not record any additional implementing directives during the meeting.
