The Rio Grande Sun reports that the names and addresses of 733 residents of New Mexico’s Rio Arriba County who have delinquent trash collection bills are being turned over to a debt collection agency. Working on commission, Sterling United Worldwide Collections will rake in close to a third of every bill they collect, meaning that it stands to make close to a half million dollars on $1.6 million in debt.

North Central Solid Waste Authority Interim Manager Michele Martinez said she chose Sterling United Worldwide Collections because it would relentlessly track down debtors. To her credit, though, she said that she didn’t want to pursue the other option available under the law: taking consumers to court. “I did not want to take anybody’s house away because of a garbage bill, no,” she said.

We’ve seen a recent spike in municipalities, universities, and other entities turning to debt collection agencies to collect on everything from parking tickets to trash collection bills. It’s evident that the recession is resulting in lower revenues for these entities, which in turn are scrambling to find ways to close the gap in budget shortfalls. With federal stimulus money dropping off, we anticipate that an even greater number of local government agencies will turn to debt collection agencies to bring in revenue.