HomeMy WebLinkAbout07/27/2021 03. Program Updates on Uncollectible Debt and Write-Offs 1
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BUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
AGENDA STAT EM ENT
Item No. 3.
For Meeting of: July 27, 2021
ITEM TITLE: Program Updates on Uncollectible Debt and Write-Offs
SUBMITTED BY: James Dean, Utility Customer Service Manager
SUMMARY EXPLANATION:
City Council requested an update and some background information on uncollectible debt and
write-offs, including parking citations and others.Attached is a memo with information related to
this topic.
ITEM BUDGETED: NA
STRATEGIC PRIORITY: Public Trust and Accountability
APPROVED FOR SUBMITTAL BY THE CITY MANAGER
RECOMMENDATION:
Review reports and provide direction as appropriate
ATTACHMENTS:
Description Upload Date Type
❑ 1 -Uncollectible Debt_memo 7/14/2021 Coker Memo
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UTILITY SERVCES
TO: City Council
City Manager
FROM: James Dean, Utility Customer Services Division Manager
DATE: July 14, 2021
RE: Summary of uncollectable debt write-off process
At the March 2, 2021 Council Meeting a motion was approved to discuss uncollectable debt as it
relates to utility accounts and parking enforcement. This memo will provide information on the
annual write-off process for uncollectable debt for utility and parking enforcement accounts.
The Utility Services Division annually submits to City Council for review and approval an amount
accounts that have deemed as uncollectable including some parking citations.
These delinquent accounts have been deemed as uncollectable and are recommended for write
off for various reasons including: bankruptcy (discharge of debt)filings, death of the debtor,
accounts have been returned from a collection agency as uncollectable or having reached the
six-year statute of limitations as defined by RCW 4.16.040. This means that a collection agency
has had six years to attempt collection before we ultimately write off.
The utility bills encompassing our multiple utilities each customer may have are currently
considered one bill and we utilize the provisions in RCW 35.21.290 and 35.21.300 that allows
us to discontinue service and impose an unfiled lien against the property.
The majority of the annual utility write offs are largely due to accounts that have reached the six-
year statute of limitations related to billings done six years ago and bankruptcy filings. The write
offs typically represent less than 1% of what was billed for the year the write off actually
represents. This percentage is within the amount the amount that is reserved for each utility for
bad debt and does not decrease the fund balance.