HomeMy WebLinkAboutR-2007-175 Write-off of certain uncollectible accounts receivable by the Utility funds of the City of YakimaRESOLUTION NO. R-2007-175
A RESOLUTION authorizing the write-off of certain uncollectible accounts
receivable by the Utility funds of the City of Yakima.
WHEREAS, attached is a report entitled "Collection Writeoff' representing
the past due but uncollectible accounts receivable by the 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 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 COUNCI ,;,'s 11th day f December, 2007.
=fid Edler, Mayor
ATTEST:
BUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
AGENDA STATEMENT
Item No. 4 A
For Meeting Of: December 11, 2007
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
Water, Irrigation, Sewer and Refuse utilities. This write-off list includes uncollectible accounts from 2001
through December 2007, for a total write-off of $199,854.90.
Note: over $168,000 of the write-off amount relates to accounts billed during 2002; due to our five-year
write-off policy for utility bad debts. (This is shorter than the six-year maximum under the Washington
State statute of limitations, but is in keeping with generally accepted accounting principles that require
write-off of delinquent accounts when the probability of collection is low.) The $199,854.90 write-off
amount includes 1,273 accounts and represents about one percent of the approximately $20,000,000 billed
during 2002.
The City writes -offs uncollectible accounts annually. 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; death of the debtor, accounts for which neither the City nor the
collection agency has been able to locate the customer, or, as noted above, when accounts are more than five
years past due.
Schedule 1, enclosed, includes the total amount to be written off in each utility, by year. The write off of
these uncollectible amounts will be charged against "reserves". (Note: The Utilities currently set aside 1% of
their monthly billing as a "bad debt reserve".) 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:
City of Yakima
December 2007
Write-off of Uncollectible Delinquent Utility Bills:
Year Water Irrigation Wastewater Refuse Total
2001 0.00 842.26 0.00 0.00 842.26
2002 49,002.51 9,174.62 78,263.15 31,829.32 168,269.60
2003 630.81 1,267.04 4,342.08 634.36 6,874.29
2004 372.80 1,029.36 5,103.93 1,665.42 8,171.51
2005 372.93 2,107.75 1,704.91 361.10 4,546.69
2006 778.34 2,999.04 1,860.60 847.95 6,485.93
2007 460.14 1,188.72 2,707.76 308.00 4,664.62
Total 51,617.53 18,608.79 93,982.43 35,646.15 199,854.90