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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 • 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: • \\Apollo\Uscrs\ranson\COUNCIL\Council Agenda Items\2009\12-01-09 A.S. 2009 Write-Offs - Utility Accts.doc • 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