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LTC 435-2020 Collection of Outstanding Revenue and ReceivablesDocuSign Envelope ID: 7136B93F-82FD-4364-A76F-9C0B44A71E4F MIAMI BEACH OFFICE OF THE CITY MANAGER LTC # 435-2020 LETTER TO COMMISSION TO: FROM: DATE: Mayor Dan Gelber and Members of the C~isi!ion .·, Ji»wq orals Jimmy L. Morales, City Manager ·zacArs«oz«s December 3, 2020 SUBJECT: Collection of Outstanding Revenue and Receivables The purpose of this L TC is to inform you of collection efforts and payment plans that the City will engage to collect outstanding revenue and receivables. The COVID-19 pandemic has dramatically impacted our local economy. As a result, the City of Miami Beach enacted several temporary measures to help our citizens and local businesses with their financial obligations owed to the City. All active collection efforts were suspended between March 1° through November 30" per Commission action and the following were enacted: • Utility services were not terminated for non-payment • Waived late payment fees (including interest) • Waived commercial lease payments As a result of the temporary measures, payment for services and remittance of resort tax returns declined significantly increasing the likelihood a high percentage of the overdue payments may never be received. Following the November 30 end date, the City proposes to adopt a COVID-19 collection strategy that is sensitive to the ongoing financial recovery of local businesses while stabilizing the City's financial outlook. Obligations to the City would be paid over specific time periods secured through signed payment agreements based on the type and amount owed. For accounts that we are unable to get signed payment agreements, we would pursue additional collection efforts including reporting delinquent accounts to the credit bureaus, issuing code violations (as applicable) and attaching liens to the properties to secure future payment. Beginning next week, staff will be reaching out to customers with past due balance from March through November 2020 to offer various payment options. The following tables provide installment plan payment guidelines for utility services, city bills for rental customers, city bills for not rental customers and resort taxes: DocuSign Envelope ID: 7136B93F-82FD-4364-A76F-9C0B44A71EA4F L TC: Collection of Outstanding Revenue and Receivables Page 2 of 2 Resort Tax Amount Due Installment Plan Less than $5,000 N/A $5,000 - $9,999.99 12 months $10,000 and greater 24 months Utility Services - Residential Customers Amount Due Installment Plan Less than or equal to $300 3 months $300.01 - $600 6 months $600.01 - $900 9 months Greater than $900 12 months Utility Services - Commercial Customers Amount Due Installment Plan Less than or equal to $2,500 3 months $2,500.01 - $5,000 6 months $5,000.01- $12,500 9 months Greater than $12,500 12 months City Bills - Non-Leasing Customers Amount Due Installment Plan $300 - $500 3 months $500.01-$1,000 6 months $1,000.01 -$5,000 9 months $5,000.01-$10,000 12 months $10,000.01 - $20,000 18 months Greater than $20,000 24 months City Bills - Leasing Customers Amount Due Installment Plan $300 - $500 3 months $500.01-$1,000 6 months $1,000.01 - $5,000 9 months Greater than $5,000 12 months Sh9ulk you have any questions, please feel free to contact John Woodruff, Chief Financial Officer. liti.