HomeMy WebLinkAbout12/09/2008 09A Write-Off of Uncollectible, Delinquent Utility Bills BUSINESS OF THE CITY COUNCIL
• YAKIMA, WASHINGTON
AGENDA STATEMENT
Item No. ` 9 A
For Meeting of: December 9, 2008
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 i Vi i►,
SUMMARY EXPLANATION:
Attached is a resolution authorizing the write -off of certain uncollectible accounts receivable owed to the
City's Water, Irrigation, Sewer and Refuse Divisions. This write -off list includes uncollectible accounts
through December 2008, for a total write -off of $248,803.15.
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;
accounts have past the statute of limitations on collection activities; receive legal notice of death of the
debtor, and neither the City nor the collection agency has been able to locate the customer. There are a
total of 1,244 accounts being written off; 1,109 of these are from 2002 -2003 and have reached the statute
of limitations. These accounts total $206,043.76, which represents approximately 1% of the dollars
billed in 2003. (Note: The Utilities currently set aside 1% of their monthly billing as an allowance for
bad debts).
Schedule 1, attached, identifies the total number of accounts and dollar amount to be written off
compared to the total revenues billed. 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: ^ Z C
City Manager
STAFF RECOMMENDATION: Adopt Resolution.
a BOARD /COMMISSION RECOMMENDTION:
COUNCIL ACTION:
\\Apollo \Users\ranson \COUNCIL \Council Agenda Items\2008 \12 -09 -08 AS - Utility Write -offs Bad Debt.doc
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Schedule 1
December 2008
Write -off of Uncollectible Delinquent Utility Bills
Number of
Year Accounts Water Irrigation Wastewater Refuse Total
2002 4 102.80 31.36 48.27 75.82 258.25
2003 1,109 50,852.36 13,523.54 102,020.14 39,647.72 206,043.76
2004 31 2,108.58 1,444.10 5,975.95 1,693.42 11,222.05
2005 21 765.13 22.32 8,860.85 1,621.28 11,269.58
2006 14 889.01 429.90 1,363.62 394.02 3,076.55
2007 33 1,267.61 455.17 2,871.50 624.90 5,219.18
2008 32 1,218.86 5,710.15 4,350.54 434.23 11,713.78
Total 1,244 $57,204.35 $21,616.54 $125,490.87 $44,491.39 $248,803.15
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• RESOLUTION NO. R -2008
A RESOLUTION Authorizing the write -off of certain uncollectable accounts
receivable by the utility funds of the City of Yakima.
WHEREAS, the report entitled "Collection Write -off' representing the past
due but uncollectable 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 "Write -off of Uncollectable Delinquent Utility Bills" listing, attached as
Schedule 1, is hereby approved, and the past due accounts receivable, itemized on the
related write -off list, are hereby written off.
ADOPTED BY THE CITY COUNCIL this 9 day of December, 2008.
•
MAYOR
ATTEST:
CITY CLERK