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Dune City adopts collection-fee policy adding 20% for unpaid invoices
Summary
The council adopted Resolution Series 2024 No. 8 to permit referral of unpaid invoices to a collection agency after 90 days and to add a 20% collection fee (25% when legal action is required). Council debated the 90‑day trigger and fee differences before a unanimous vote.
Chair opened the item and asked staff for a report on the proposed collection process. City staff explained the practical workflow: monthly notices at 30/60/90 days and, after 90 days, accounts may be placed with a collection agency. Staff said the policy adds a 20% markup for unpaid invoices referred to collections and a 25% charge when legal action is required.
"So, basically, our process is that for each 30 days, we're sending out past due invoices and then after 90 days ... I would like to be able to put them on the collections spreadsheet for the collections agency to start reaching out," the staff member said, and the Chair noted, "And, specifically, there's a 20% markup for unpaid invoices." Council members asked why 90 days was chosen and whether the fee structure complied with state law; staff replied that 90 days was an operational choice reflecting prior monthly outreach and that the collection fees align with the collection-agency practice.
After clarifying questions from council members, the Chair asked for a motion. A council member moved to adopt Resolution Series 2024 No. 8; the council approved the resolution by voice vote with no dissent. Staff will implement the 30/60/90 notice sequence and refer accounts to the contracted collection agency as directed.
