Attached is a resolution authorizing the write-off of certain uncollectable accounts receivable owed to the City’s Water, Irrigation, Wastewater, Solid Waste, and Storm water Divisions. A total of 866 accounts totaling $228,734.84 have been identified for write-off, since the last write-off was done in February of 2021.
Delinquent accounts are recommended for write-off for various reasons, including:
1) The Statue of Limitations (six (6) years or older) has been met
2) Bankruptcy (discharge of debt);
3) Death of debtor; and
4) 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 2015. The $228,734.84 represents less than 1% (.64%) 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 each utility division to be discharged. |