Attached is a resolution authorizing the write-off of certain uncollectable accounts receivable owed to the City’s Water, Irrigation, Wastewater, Solid Waste, and Stormwater Divisions. There were no Stormwater accounts identified for write-off for this period. A total of 954 accounts totaling $235,757.07 have been identified for write-off, representing one year of activity since the last submission to Council in December of 2017.
Delinquent accounts are recommended for write-off for various reasons, including:
- The Statue of Limitations (six (6) years or older) has been met
- Bankruptcy (discharge of debt);
- Death of debtor; and
- Accounts have been sent to a collection agency and returned as uncollectable.
The large majority of the write-offs meet the 6 year statute of limitations which relate to the billings done in 2012. The $235,757.07 represents slightly less than 1% (.69%) of the dollars billed that year. The utility divisions currently reserve 1% of their monthly billing for bad debt. Since this is within the amount reserved, the fund balances will not be decreased by this write-off. The resolution (attached) identifies the dollar amount by utility division to be discharged. |