HomeMy WebLinkAboutR-2014-151 Uncollectable Delinquent Utility Accounts Receivable Write-Off RESOLUTION NO. R -2014 -151
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, 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 1,212 uncollectable
delinquent accounts totaling $220,826.05 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
$220,826.05 are hereby recognized by the City Council as uncollectable and the Director of
Finance of the City is herby authorized to write off these debts accordingly.
Water Irrigation Wastewater Refuse
$57,263.04 $19,501.86 $101,978.09 $42,083 06
ADOPTED BY THE CITY COUNCIL this 9th day of December, 2014.
Micah Ca ey, Mayor
ATTEST:
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BUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
AGENDA STATEMENT
Item No. 5.J.
For Meeting of: December 09, 2014
ITEM TITLE: Resolution authorizing the write off of certain uncollectable
delinquent utility accounts receivable funds
SUBMITTED BY: Cindy Epperson, 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 and Refuse Divisions. A total of $220,826.05
(1,212 accounts) have been identified for write off, representing a year of activity, since the last
write -off was done in December 2013.
Delinquent accounts are recommended for write -off for various reasons, including:
1) The Statute of Limitations (six (6) years and 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 2009. The $220,826.06 represents slightly less than 1% (.76 %) 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.
Resolution: X Ordinance:
Other (Specify):
Contract: Contract Term:
Start Date: End Date:
Item Budgeted: Amount:
Funding Source /Fiscal
Impact:
Strategic Priority:
Insurance Required? No
Mail to:
Phone:
APPROVED FOR
SUBMITTAL: - City Manager
RECOMMENDATION:
Adopt Resolution
ATTACHMENTS:
Description Upload Date Type
0 Resolution -2014 Utility Billing Accts Rec Write -off 12/1/2014 Resolution