HomeMy WebLinkAbout12/10/2013 05I Write-off of Uncollectable Utility Accounts ReceivableBUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
AGENDA STATEMENT
Item No.
For Meeting of: 12/10/2013
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ITEM TITLE: Resolution authorizing the write off of certain uncollectable
delinquent utility accounts receivable funds for the City of
Yakima
SUBMITTED BY: Cindy Epperson, Director of Finance and Budget
James Dean, Utility Services Manager
SUMMARY EXPLANATION:
Attached is a Resolution authorizing the write-off of certain uncollectable accounts receivable
owed to the City's Water, Irrigation, Wastewater and Refuse Divisions. A total of $232,929
(1,301 accounts) have been identified for write off, representing a year of activity, since the last
write-off was done in December 2012.
Delinquent accounts are recommended for write-off for various reasons, including:
1) The Statute of Limitations (six (6) years and 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 2008. The $232,929 represents slightly less than 1% (.87%) 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.
Resolution: X
Other (Specify):
Contract: Contract Term:
Start Date: End Date:
Amount:
Ordinance:
Item Budgeted:
Funding Source/Fiscal
Impact:
Strategic Priority:
Insurance Required? No
Mail to:
Phone:
APPROVED FOR
SUBMITTAL:
RECOMMENDATION:
Adopt Resolution
ATTACHMENTS:
Description
2013 Resolution Utility Write Off
City Manager
Upload Date
12/3/2013
Type
Resollution
RESOLUTION NO. R-2013
A RESOLUTION Authorizing the write-off of certain uncollectable accounts
receivable by the utility funds of the City of Yakima.
WHEREAS, the Utility Services Division of the City of Yakima manages
the billing process for the City's Water, Irrigation, Wastewater, and Refuse
utilities, and;
WHEREAS, in accordance with best business practice, past due accounts
are sent to a collection agency for follow-up, and the agency reports back
uncollectable accounts that are past the Statute of Limitations; discharged in a
bankruptcy; discharged by death of the debtor; or otherwise uncollectable; and
WHEREAS, the Utility Services Division has a detailed listing of 1,301
uncollectable delinquent accounts totaling $232,929 due to various 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 delinquent accounts in the following amounts as summarized by utility
totaling $232,929 are hereby recognized by the City Council as uncollectable and
the Director of Finance of the City is herby authorized to write-off these debts
accordingly.
Water Irrigation Wastewater Refuse
$59,975 $18,095 $104,956 $49,903
ADOPTED BY THE CITY COUNCIL this 10th day of December, 2013.
Micah Cawley, Mayor
ATTEST:
CITY CLERK