Collections in Los Angeles are a mess: City departments are collecting just over half of what they bill; no real centralized billing and collection process yet exists in the City; and a majority of L.A.’s $541 million in non-tax receivables are well past due. L.A.’s Controller and others have been sounding warning bells about this for years, and no city and no business can afford to operate this way. 

The City’s Commission on Revenue Efficiency (CORE) has been given the task of developing a plan to fix the problems with collections. As Chair of CORE, I had the recent opportunity to present a review of our work to the Council’s Budget & Finance Committee, and I am proud to report that our Commission is finalizing a Blueprint for Reform of City Collections, which we expect to release in the coming weeks. Our 7-member Commission was created by the City Council earlier this year, with experts appointed by the Mayor, Controller, Council President, and chairs of the Council’s committees on Audits & Governmental Efficiency and Budget & Finance. CORE’s Commissioners have met near weekly since late March to study and develop a comprehensive plan for reform.

The Blueprint includes analysis of L.A.’s current state of revenue and collections — and detailed recommendations for improving accountability of City departments, performance incentives, centralization, standardization, technology, collection agencies and strategies for getting those owing money to the City to pay.

By Mark Madler, San Fernando Valley Business Journal, 7-1-2010

The City of Los Angeles failed to collect nearly $300 million owed to it in 2008-09, according to an audit from the City Controller’s office released July 1.

The city has not improved its collection rate on fees and fines since the last audit in 2007, which was unacceptable, said Controller Wendy Greuel.

City departments surveyed by the controller’s office showed billings totaling $553.4 million for fiscal year 2008-09 but only $293 million had been collected. Cited as having among the lowest collection rates were parking citations and billings for ambulance transportation. . .

In February, the City Council formed the Commission on Revenue Enhancement to look into ways to improve collections on money owed and find new sources to fill the city’s coffers. The commission is expected to release its recommendations in the next few weeks.

The commission will recommend general and specific ways to change the collections process, said Chairman Ron Galperin.

“We knew what the controller was gong to be finding; it is the same we are finding in the testimony we are hearing before us,” Galperin said. “It is more vital than ever to have the changes made.”

Read more.

Southern California is no stranger to hot, dry weather, and the wildfires that inevitably result are all too familiar. As reported by the L.A. Times and NBC this week, I joined my fellow L.A. County Quality and Productivity Commissioners in presenting our just-completed study of early fire detection technologies to the L.A. County Board of Supervisors. Read the full report here. We identified and made recommendations for greater use of satellites, infrared cameras, and stationary sensors to detect fires before they get out of control.

STUDY: Committee Has Fast Start.

By Mark Madler, San Fernando Valley Business Journal, 5-10-2010

Six months.

That is the amount of time the Commission on Revenue Efficiency has to gather its facts and prepare recommendations on how the city can improve collections on money owed and find new sources to fill the city’s coffers.

The seven-member ad hoc commission has gotten off to a quick start, meeting once a week at City Hall to hear presentations by city departments…

Galperin, a journalist before turning to law, serves as the commission’s chairman. His goal is not just to have the city quickly collect what it can on debt but also take a wider view to address the bureaucratic culture that led the city to be in the financial position it finds itself in.

To bring in more money, Galperin would like the city to be more entrepreneurial and make available goods and services to municipal and county governments.

For instance, there are city-owned asphalt plants not operating at full capacity that could provide asphalt to other cities, Galperin said. Proprietary software developed by the city could be licensed out as well, he added.

Read more.

FUNDS: With city in crisis mode, move to collect debts gets serious.

By Mark Madler, San Fernando Valley Business Journal, 5-10-2010

The City of Los Angeles loses out on millions of dollars in uncollected fees, fines, and permits every year due to inconsistent policies, multiple billing systems, antiquated technology, and staff shortages.

Reports and studies over the past few years have all recommended the same solution – centralizing the collections process – but it has been slow to be implemented into the city’s bureaucracy…

“The imperative to reform finances has never been greater,” said Ron Galperin, chairman of an ad hoc commission looking at the collection process. “When economic times were better very few people felt the same fire beneath them to change.”

The Commission on Revenue Efficiency was formed this spring and meets weekly in a fact gathering stage to prepare recommendations on the collections process and new ways to generate revenues.

Various city departments have appeared before the seven-member commission to describe billing and collection procedures. The department representatives have been forthcoming in their deficiencies and are open to making changes, commission members said.

Read more.