HomeMy WebLinkAbout12/01/2009 11A Uncollectable Utility Accounts Write-off BUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
AGENDA STATEMENT
Item No. *.//
For Meeting Of: December 1, 2009
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ITEM TITLE: A Resolution Authorizing Certain Uncollectible Delinquent Utility Bills to be
Written Off
SUBMITTED BY: Finance and Utility Services Divisions
CONTACT PERSON/TELEPHONE: Pete Hobbs, Utility Services Manager; 575-6080
Edna Pettyjohn, Accountant; 575-6070
SUMMARY EXPLANATION:
Attached is a resolution authorizing the write-off of certain uncollectible accounts receivable owed to the
City's Water, Irrigation, Sewer and Refuse Divisions. This write-off list includes uncollectible accounts
through December 2009, for a total write-off of $299,542.37.
Accounts are included on the write-off list when: accounts have been sent to a collection agency and
returned as uncollectible; accounts have been included in a bankruptcy with a discharge of debtor; accounts
hat have past the statute of limitations on collection activities, death of the debtor, and accounts for which
neither the City nor the collection agency has been able to locate the customer; There are a total of 1,417
accounts for $299,543.37 which have been identified for write off. Of these, 1,281 are from 2003-2004, and
have reached the statute of limitations; these accounts total $257,457.87, which represents approximately
1% of the dollars billed in 2004:
Schedule 1, enclosed, identifies the total number of accounts and dollar amounts to be written off, by each
Utility. Schedule 2, enclosed, compares the 2004 accounts and dollar amounts to be written off to the total
amounts billed by each Utility in 2004, and identifies the percentage of the total billed to be written off.
(Note: The Utilities currently set aside approximately 1 % of inonthly billings for bad debts).
A list detailing the account number, name of the customer and amount of write-off is available from the
Utility Services Manager upon request.
Resolution X • Ordinance Contract Other (Specify)
Funding Source Utility Reserves
APPROVAL FOR SUBMITTAL:
City Manager
STAFF RECOMMENDATION: Adopt resolution. •
. COUNCIL ACTION: •
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Schedule 1:
December 2009 Write-off of Uncollectible Delinquent Utility Bills:
Year , Water Irrigation Wastewater Refuse Total Accounts
2009 $ 1,009.13 $ 2,059.56 $ 9,949.60 $ 3,257.84 $ 16,276.13 42
2008 $ 1,322.26 $ 488.54 $ 3,196.96 $ 856.23 $ 5,863.99 25
2007 $ 1,250.02 $ 1,211.24 $ 3,631.28 $ 1,811.95 $ 7,904.49 17
2006 $ 522.60 $ 1,133.58 $ 1,028.52 $ 461.64 $ 3,146.34 12
2005 $ 1,143.50 $ 1,377.51 $ 5,251.52 $ 1,121.02 $ 8,893.55 40
2004 $58,532.78 $14,165.78 $ 135,654.97 $48,074.45 $ 256,427.98 1274
2003 $ 201.51 $ 372.38 $ 358.58 $ 97.42 $ 1,029.89 7
$63,981.80 $20,808.59 $159,071.43 $55,680.55 $ 299,542.37 1417
Schedule 2:
2004 Write offs as Percentage of Total Billing
Year Water Irrigation Wastewater Refuse Total
2004 $58,532.78 $14,165.78 $ 135,654.97 $48,074.45 $ 256,427.98
Billed $5,170,724.90 $2,487,533.65 $12,850,638.07 $3,346,809.79 $23,855,706.41
1.13% 0.57% 1.06% 1.43% 1.07%
RESOLUTION NO. R-2009
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 entitled "Collection Write off' representing
the past due but uncollectable accounts receivable by the utility funds of the City to be
written off 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.
ADOPTED BY THE CITY COUNCIL this 1st day of December, 2009.
MAYOR
ATTEST:
CITY CLERK