Loading...
HomeMy WebLinkAbout12/05/2017 06F Write-Off of Uncollectable Utility Accounts ReceivablesITEM TITLE: SUBMITTED BY: BUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDA STATEMENT 1 Item No. 6.F. For Meeting of: December 5, 2017 Resolution authorizing the write-off of certain uncollectable utility accounts receivable DannyAgsalog, 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, Solid Waste, and Stormwater Divisions. A total of 932 accounts totaling $180,994.32 have been identified for write-off, representing two years of activity, since the last write-off was done in December 2015. 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 2011. The $180,994.32 represents slightly less than 1`)/0 (.64%) of the dollars billed last year. The utility divisions currently reserve 1`)/0 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. ITEM BUDGETED: NA STRATEGIC PRIORITY: Public Trust and Accountability APPROVED FOR SUBMITTAL: City Manager STAFF RECOMMENDATION: 2 Adopt Resolution BOARD/COMMITTEE RECOMMENDATION: ATTACHMENTS: Description Upload Date Type D Resolution Utility Bad Debt Write-off 11/2972017 or Memo RESOLUTION NO. R -2017- 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, Storm water 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 ar@ 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 932 uncollectable delinquent accounts totaling $180,994.32 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 $180,994.32 are hereby recognized by the City Council as uncollectable and the Director of Finance of the City is hereby authorized to write off these debts accordingly. Water Irrigation Wastewater Refuse Storm water $28,724.35 $11,115.80 $88,237.79 $48,568.32 $4,348.06 ADOPTED BY THE CITY COUNCIL this 05th day of December, 2017. ATTEST: Kathy Coffey, Mayor City Clerk