Share to Facebook Share to Twitter Bookmark and Share
File #: 16-1367    Version: 1 Name: Write Offs FY 2015
Type: Agenda Item Status: Approved
File created: 10/26/2016 In control: Finance
On agenda: 11/8/2016 Final action: 11/8/2016
Title: Consider and take action on a resolution approving the write-off of inactive utility accounts in a total amount not to exceed $48,126.05 (Assistant City Manager)
Attachments: 1. Data Sheet, 2. Proposed Resolution

Title

Consider and take action on a resolution approving the write-off of inactive utility accounts in a total amount not to exceed $48,126.05 (Assistant City Manager)

 

Background:

 

Approval of this item will authorize staff to “write off” delinquent water utility accounts that are determined to be uncollectible.  The Council last took action to write off accounts on October 27, 2015.  Since that time, 305 accounts with a total balance of $48,126.05 have been closed with collection efforts unsuccessful and at this point these accounts are uncollectible.  The 305 accounts represent less than 0.16% of the $31.5 million in revenue billed in fiscal year 2015.

 

The collection process for utility accounts is as follows:

 

                     At the time that the account is closed, the final reading is taken and the bill is submitted to the customer.  This bill is due within 30 days.

                     If the payment is not received, a reminder letter is sent to the customer the following month.

                     30 days after the reminder letter (90 days after the final bill sent to the customer), the account is turned over to the collection firm.

 

These uncollectible accounts have been with the collection attorney for a least one (1) year and remain uncollected.  Approval of this action will allow staff to remove the accounts from the financial statements as uncollectible accounts.  The detail balances will remain in our utility records and will be recovered if possible.

 

Attachment

1.                     Data sheet

2.                     Proposed resolution

 

FUNDING

{X}   Funds are available from Utility Fund Account Allowance for Bad Debt 10201650-53970