Denver City Council on Monday voted down a resolution from the city’s courts to send debts under $300 to a collections agency the city has historically worked with.

The resolution, which failed in a split 5-5 vote, proposed extending and modifying the city’s contract with Integral Recoveries, an organization that manages delinquent fines and fees over $300.

The proposal would have extended the city’s contract with the collections agency and allowed it to manage smaller fines and fees. The contract expired at the end of February, but the agency has continued working for the city since then.

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The bill was called out for a vote by council President Pro Tem Jamie Torres, who said she had concerns over the contract exacerbating poverty in the city. She said the city’s Office of Financial Empowerment & Protection is applying to join a cohort of other cities looking at fine and fee justice, which Torres said could be the perfect time for the courts and the city to work together on a “more robust proposal.”

“Nationally, fines and fees disproportionately burden low-income people and people of color and make it harder for low-income folks to afford basic services and goods,” Torres said. “But I think there’s still an opportunity before creating a new category of collections referral for us to ensure we have a full picture of who’s impacted and what the consequences could be and if there are more innovative and just ways of addressing fees and fines owed.”

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Court Administrator Kristin Wood said that if this bill were to fail – which it did – collection efforts with Integral Recoveries would cease entirely. To keep this from happening, she asked the council to propose an amended contract to renew services for debts over $300.

Torres said other cities in the cohort Denver is seeking to join have assessed which fees and fines are unnecessary or overburdensome. The other cities have not eliminated the fees entirely, which Torres said would be the goal of working with the Office of Financial Empowerment & Protection. She also said this wouldn’t be just for court fees, but fees and fines citywide.

Councilwoman Kendra Black wondered what would happen to someone if they never paid what they owed, and Wood said they would likely be “purged from the system” and never reported to a credit bureau, which means the delinquent fees wouldn’t become part of that person’s credit record.

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Wood also said the city has three collections investigators on staff who work with people to establish payment plans or waive fees in some cases when someone might be considered indigent, but delinquent accounts are sent to Integral Recoveries. Noncompliant accounts go to collections after about 90 days if someone ceased contact with city staff.