TO: Mayor and Members of City Council
THRU: Jeffrey Yates, Assistant City Manager
FROM: Amanda Mott, Assistant Chief Financial Officer Financial Reporting
DATE: October 12, 2026
RE:Title
Approve the Code Enforcement Collections Framework and Adopt a Resolution Authorizing Accounting Write Offs and Limited Interest and Penalty WaiversTitle
end
end
COUNCIL DISTRICT(S):
Council District(s)
All
b
Relationship To Strategic Plan:
The proposed framework supports the goal of a Financially Sound City Providing Exemplary City Services by improving the recovery of public funds, maintaining accurate financial records, and providing a consistent, documented process for property owners to question balances and resolve valid obligations.
Executive Summary:
The City’s records show approximately $3.9 million in outstanding Code Enforcement charges as of July 1, 2026, for lot cleaning, lot clearing, demolition, and related work performed at public expense on private property. The proposed Collections Framework would standardize account validation, property owner inquiries, payment plans, collection efforts, and the annual review of uncollectible balances.
An accounting write-off removes a balance from active accounting records; it does not forgive the debt or cancel collection rights. Staff also recommends granting temporary authority to the City Manager and Chief Financial Officer, acting jointly, to waive legally eligible interest and penalties to facilitate full payment of principal through June 30, 2027. Principal would not be eligible for waiver under this authority.
Background:
When property owners fail to correct qualifying code violations, the City may perform the necessary work and seek to recover eligible costs through the applicable legal process. These charges reimburse public funds spent to address conditions that affect health and safety in the neighborhood.
Older accounts were managed through various processes and financial systems, and some require review of historical or paper records. In 2026, Finance mailed approximately 3,800 reminder invoices for outstanding charges dating back to 2003. The resulting inquiries underscored the need for clear account documentation, consistent review procedures, and practical payment options.
Approximately $2 million of the reported outstanding balance consists of charges more than ten years old. Account age alone would not establish eligibility for forgiveness or determine whether a debt remains legally collectible.
Issues/Analysis:
The framework combines the collection of valid obligations with a documented review of disputed balances. Collection tools include statements, payment plans, liens, debt setoff, and third-party collections where legally available. Account corrections or releases require documentation and appropriate authority; missing records would prompt further review rather than automatic cancellation.
An annual accounting review would identify balances to be written off for financial reporting purposes, with supporting documentation and an annual summary for Council. Such write-offs would not, by themselves, release debts, liens, judgments, or other collection rights.
The proposed interest and penalty waiver process would require joint written approval from the City Manager and Chief Financial Officer, confirmation that the waiver is legally permitted, and written payment terms requiring full payment of principal. Hardship, account history, communication issues, and payment alternatives may inform the review but would not independently establish eligibility.
Before adoption, staff should align the resolution, FAQ, request form, and presentation on waiver eligibility, payment conditions, and the June 30, 2027, expiration date. The resolution contains conflicting exclusions for liens and assessments and omits the expiration date. The City Attorney should confirm the permissible scope of delegation.
Staff recommend reporting the results of the temporary waiver authority to Council before any extension is considered.
Budget Impact:
No additional appropriation is requested. The framework is intended to improve the recovery of outstanding balances within existing operations. Accounting write-offs may change reported receivables but do not involve a cash payment or forgive the underlying debt.
Approved waivers would reduce eligible interest and penalty amounts otherwise due in exchange for the collection of full principal. The potential amount of waivers and additional collections has not been quantified in the supporting materials.
Options:
1. Approve the Collections Framework and adopt the resolution establishing annual accounting write-off authority and limited joint authority for the City Manager and Chief Financial Officer to waive legally eligible interest and penalties through June 30, 2027, with the resolution and supporting materials aligned with those terms.
2. Do not approve the framework and resolution at this time, and provide further direction to staff on collection procedures, account review, or the proposed delegated authority.
Recommended Action::Recommended Action
Approve the Code Enforcement Collections Framework, adopt the resolution establishing annual accounting write-off authority and limited authority for the City Manager and Chief Financial Officer, acting jointly, to waive legally eligible interest and penalties through June 30, 2027, without reducing principal, and to authorize the administrative, budgetary, and financial actions necessary to implement the approved framework and resolution.
end
Attachments:
Resolution Establishing Authority to Write Off Uncollectible Accounts and Limited Authority to Waive Interest and Penalties
Code Enforcement Assessment Frequently Asked Questions
Code Enforcement Interest and Penalty Waiver Request
Recommended Framework for Outstanding Code Enforcement Assessments Presentation