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Improving Your Collection Department: Building A Plan

David McPherson Deputy Finance Director City of San Jose. Improving Your Collection Department: Building A Plan. $HOW ME THE MONEY. Revenue Collection Strategic Plan (RCSP).

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Improving Your Collection Department: Building A Plan

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  1. David McPherson Deputy Finance Director City of San Jose Improving Your Collection Department: Building A Plan

  2. $HOW ME THE MONEY

  3. Revenue Collection Strategic Plan (RCSP) The City of San Jose began the RCSP in January 2007 with the restructure of operations to maximize effectiveness of the time investigator collectors spent on collections. The goal was to implement an aggressive revenue collection campaign intended to: Increase the tax revenue base Reduce the average number of days the active accounts remain past due Audit programs which generate revenue (i.e. TOT, UUT, Sale/Use Tax, etc) Improve the collection of data to maximize collection efforts Improve customer service

  4. Staff Survey • Understand the needs of your staff • Provide growth for each individual team member • Improve morale of the department • Don’t be afraid of risk taking • Encourage innovation • Think outside the box • Keep staff engaged

  5. Evaluate Resources and Programs ABC Reports Statistical Analysis Accurate Accountability ROI & Cost Benefits Targets & Objectives Technology Needs (laptops, multi-function devices, etc) Active Listening Three P’s Implemented: Policies Procedures Processes

  6. Evaluate Resources and Programs Revenue Reserves (bad debt write-offs) Why do we do what we do? Payment Processing efficiencies Kiosk at strategically placed locations Web Self Service (pay on-line) Counter (one stop shop) Alternative Collection Programs Hardships Exemptions Low Income Plans Payment Plans

  7. Mail/Phone Analysis Returned Mail (What do you do with it?) Delinquent Notices (How many do you send?) Marketing Strategies Email Options Phone Tree’s – IVR Options Customer Service Evaluations Expectations vs. Resources Listen and Learn Internal and External Controls Economic Conditions Software Programs Policy Decisions Evaluate Resources and Programs

  8. Revenue Collection Strategic Plan (RCSP) Phases Accounts Receivable Collections Amnesty Program Business Tax Discovery Program BLIP Program Compliance & Revenue Audits Collection Agency Back Stop Program Intern Program Sales Tax Compliance Unclaimed Property Cost Recovery Fees Business Tax Admin Fee Collection Agency Fee Lien Fees Bank Fees

  9. Strategic Re-Alignment of Revenue Management Division

  10. RCSP Program Target Time Allocation

  11. Amnesty Programs Good Public Relations and Out Reach During Tough Economic Times Allows for Timely Bad debt write-offs Qualifications Accounts over 1 year past due Example: Admin Citations, Special Events/ Parade Reimbursements, Animal Impound, etc. No taxes or lienable accounts (sidewalk repair, admin remedies, and government agencies) Resources Schedule staff for proper coverage Budget for advertisement in local papers Utilize free marketing through the City website, communication with the local Chambers of Commerce, and receive free ads through radio and TV via Public Service Announcements

  12. Business License Information Program (BLIP) Initial Phase Sent out 2,300 business tax lead notices per week for a 12-week period Second Phase Sent out 1,800 notices per week for 8 weeks The primary objective will be to notify 13,128 delinquent businesses to pay their business tax or notify the City that they are no longer in business Third Phase Implement Business Tax Discovery Program

  13. Business Discovery Program Implement an E-Discovery Data Base Create a partnership with Other Agencies Business Tax (BOE, FTB, and EDD) Sales Tax (BOE and other Cites) Unsecured Property Tax (County Assessor) Business Improvement District (Special Districts) Sanitary and Storm Sewer Fee (Other Departments and Special Districts)

  14. Pilot Program Summary Results (January 2007 – June 2007) *ROI=Return on Investment resulting in $ generated per $1.00 in cost.

  15. Comparison of Same PeriodJanuary to June FY 05-06 vs. FY 06-07

  16. Summary of Revenue Collection and Audit Results For Fiscal Year 2007-2008

  17. Collection ResultsFor Fiscal Year 2007-2008 *ROI = Return on Investment resulting in $ generated per $1.00 in cost.

  18. Collection and Target Chart

  19. Summary of Collection ResultsTotal for FY 2007-2008 Quarters

  20. David McPherson Deputy Finance Director City of San José 200 East Santa Clara Street San José, CA 95113 (408)535-7091 Dave.Mcpherson@Sanjoseca.gov

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