HomeMy WebLinkAboutR-2015-147 Uncollectable Delinquent Utility Accounts Receivable Write OffRESOLUTION NO. R-2015-147
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 1,806 uncollectable
delinquent accounts totaling $270,387.23 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
$270,387.23 are hereby recognized by the City Council as uncollectable and the Director of
Finance of the City is hereby authorized to write off these debts accordingly.
Water Irrigation Wastewater Refuse Storm water
$61,243.13 $24,847.77 $115,312 53 $55,458.43 $13,525.37
ADOPTED BY THE CITY COUNCIL this 1st day of December, 2015.
(1)4% ss,
Micah Cawley, Mayor
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BUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
AGENDA STATEMENT
Item No. S.G.
For Meeting of: December 1, 2015
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, Sewer, Storm water and Refuse Divisions. There is a total of $256,861.86 that has
been identified for write off for Water, Irrigation, Sewer, and Refuse representing a year of activity, since the
last write-off in December 2014. There is a total of $13,525.37 that has been identified for write off for the
Stormwater Division. Since this is our newest utility, this is the first year of write offs relating to the statute of
limitations (i.e. the passing of time).
Delinquent accounts are recommended for write-off for various reasons, including:
1) The Statute of Limitations (six (6) years or older) has been met;
2) Bankruptcy (discharge of debt);
3) Death of a debtor; and
4) Accounts have been sent to a collection agency and returned as unc o llec tab le.
The large majority of the write-offs meet the 6 year statute of limitations which relate to the billings done in
2009. The $256,861.86 represents slightly less the 1% (0.86%) of the dollars billed that year. The $13,525.87
represents about half of 1% (0.48%) of the dollars billed for billing years 2008 & 2009. 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: Yes Amount:
Funding Source/Fiscal Impact:
Strategic Priority: Public Trust and Accountability
Insurance Required? No
Mail to:
Phone:
APPROVED FOR
SUBMITTAL:
RECOMMENDATION:
Adopt Resolution
ATTACHMENTS:
Description
D IResollution 2015 tillIllity Write Off
City Manager
Upload Date
11/20/2015
Type
Omer Memo