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