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HomeMy WebLinkAboutR-2000-148 uncollectable utility billsRESOLUTION NO. R-2000— 148 A RESOLUTION authorizing the write-off of certain uncollectable accounts receivable by the utility funds of the City of Yakima. WHEREAS, attached is a report of write-offs recommending action to be taken by the Yakima City Council in connection with accounts of the Customer Services Division of the City, and the past due but uncollectable accounts receivable by the utility funds of the City to be discharged by City Council action, now, therefore. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF YAKIMA: The attached "Utility Account Write-off List" is hereby approved, and the past due accounts receivable, itemized on the attached write-off list, are hereby written off and cancelled. ADOPTED BY THE CITY COUNCIL this 5th day of December 2000. ATTEST: CITY CLERK )44, /94e MAYOR (Schedule 1) Following is a schedule identifying, by year: the number of accounts to be written off, the write-off amount, the total amount of revenue billed and the write-off percentage per year. NUMBER OF AMOUNT TO BE YEARLY AMT %-AGE YEAR ACCOUNTS WRITTEN OFF BILLED WRITEOFF 1989 1 $ 52.97 1991 422 $39,312.14 $ 9,516,307.97 .41% 1992 373 $41,517.10 $10,444,627.05 .40% 1993 378 $47,543.98 $10,703,948.58 .44% 1994 473 $57,161.88 $11,603,286.91 .49% 1995 786 $89,544.08 $12,157,059.52 .74% Total 2433 $275,132.15 $54,425,230.03 .51% ** - Billing information unavailable BUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDA STATEMENT IA A Item No. iH For Meeting Of: December 5, 2000 ITEM TITLE: A Resolution Authorizing Certain Uncollectable Utility Bilis to be Written Off SUBMITTED BY: Rita Anson, Finance Director CONTACT PERSON/TELEPHONE: Bert Tabayoyon, Customer Service Manager, 575-6080 Edna Pettyjohn, Accountant, 575-6070 SUMMARY EXPLANATION: Attached is a resolution authorizing the write-off of certain uncollectable accounts receivable owed to the City's Water, Sewer and Refuse Operations. This write-off list covers a period from 1991 through 1995 and one account for 1989 and amounts to a total write-off of $275,132.15. A list detailing the account number, name of the customer and amount of write-off is available from the Customer Service Manager upon request. The total amount to be written off of $275,132.15 or 2,433 accounts is an average write-off of approximately $113.08 per account. The write-off represents .51% of the total amount billed during the write-off period of $54,425,230. By utility industry standards, this is a relatively low write-off percentage. (Refer to Schedule 1 attached). Accounts on the write-off list include: accounts that have been sent to a collection agency and returned as uncollectable; accounts that have been included in a bankruptcy with a discharge of debtor; or accounts for which neither the City nor collection agency has been able to locate the customer. Generally, the City maintains the accounts receivable collection efforts for up to six years. Schedule 1, enclosed, identifies the total number of accounts and dollar amount to be written off by year compared to the total revenues billed by year. Resolution X Ordinance Contract Other (Specify) Funding Source APPROVAL FOR SUBMITTAL: City Manager STAFF RECOMMENDATION: Adopt resolution. BOARD/COMMISSION RECOMMENDATION: COUNCIL ACTION: Resolution adopted. RESOLUTION NO. R-2000-148