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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 nun 11,1:1141r10 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