HomeMy WebLinkAboutR-2021-019 Write-Off of Uncollectable Utility Accounts ReceivablesRESOLUTION NO. R-2021-019
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 1122 uncollectable
delinquent accounts totaling $293,154.11 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
$293,154.11 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 Waste Water Refuse Fees
$70,269.95 $25,383.36 $143,432.30 $53,295.96 $772.54
ADOPTED BY THE CITY COUNCIL this 16th day of February, 2021.
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S 011 aar Tee, City Clork-
P tricia Byers, ayor
1
ITEM TITLE:
SUBMITTED BY:
BUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
AGENDA STATEM ENT
Item No. 4.G.
For Meeting of: February 16, 2021
Resolution authorizing the write-off of certain uncollectable utility
accounts receivable
Steve Groom, Director of Finance and Budget
James Dean, Utility Customer Services Manager
SUMMARY EXPLANATION:
Attached is a resolution authorizing the annual write-off of certain uncollectable accounts
receivable owed to the City's Water, Irrigation, Wastewater, Solid Waste, and Storm water
Divisions. A total of 1,122 accounts totaling $293,154.11 have been identified for write-off, since
the last write-off was done in February 2020, when 1,415 accounts totaling $259,667.96 written
off.
Delinquent accounts are recommended for write-off for various reasons, including: The Statute of
Limitations (six (6) years or older) has been met; Bankruptcy (discharge of debt); Death of debtor;
and 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 2014. The $293,154.11 represents slightly less than 1 % (.81 %) of the dollars billed that
year. The utility division currently reserves 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 each utility division to be discharged.
ITEM BUDGETED: NA
STRATEGIC PRIORITY: Public Trust and Accountability
APPROVED FOR SUBMITTAL BY THE CITY MANAGER
RECOMMENDATION:
Adopt Resolution
ATTACHMENTS:
Description Upload Date Type
2
D R+74,=olution 11190T1 Resolution