The city of Cedar Rapids, Iowa, is set to quadruple the size of its contract with the collection agency it uses because it has done such a great job.
The contract with Municipal Collections of America is set to be amended at a city council meeting tonight. The original contract was for $500,000 when it was signed last year, but the city council is considering raising that to $2 million when it meets.
It appears as though Municipal Collections of America is having a lot of luck using a state offset program, which allows the state to withhold lottery and casino winnings, tax refunds, and other money due to residents if they have unpaid debts. The entry on the council’s agenda for tonight’s meeting reads:
“Due to the success of collecting past due payments, especially through the use of the state offset program $1,500,000 is being added to the contract for payment of these additional services.”
The vote is one of more than 100 items on the council’s consent agenda for tonight, meaning all the items can be approved under a single vote.