HomeMy WebLinkAboutR-2019-025 Write-Off of Uncollectable Utility Accounts ReceivablesSonya Clarhee, City Clerk
RESOLUTION NO. R-2019-025
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 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 954 uncollectable
delinquent accounts totaling $235,757 07 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
$235,757.07 are hereby recognized by the City Council as uncollectable and the Director of
Finance & Budget or his /her designee is hereby authorized to write off these debts accordingly
Water Irrigation Wastewater Refuse Fees
$74,291 72 $8,715 23 $106,795 50 $45,493.27 $461 35
ADOPTED BY THE CITY COUNCIL this 19th day of February, 2019.
ATTEST.
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Kath Coffey, ayor
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ITEM TITLE:
SUBMITTED BY:
BUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
AGENDA STATEM ENT
Item No. 6.W.
For Meeting of: February 19, 2019
Resolution authorizing the write-off of certain uncollectable utility
accounts receivable
Steve Groom, 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. There
were no Stormwater accounts identified for write-off for this period. A total of 954 accounts
totaling $235,757.07 have been identified for write-off, representing one year of activity since the
last submission to Council in December of 2017.
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 2012. The $235,757.07 represents slightly less than 1 % (.69%) 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.
ITEM BUDGETED:
NA
STRATEGIC PRIORITY: Public Trust and Accountability
APPROVED FOR
SUBMITTAL:
City Manager
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STAFF RECOMMENDATION:
Adopt Resolution
BOARD/COMMITTEE RECOMMENDATION:
ATTACHMENTS:
Description Upload Date Type
D Resolution 7n1H UUBty Bill Write-off 76J7019 CrAer Memo