HomeMy WebLinkAboutFIN-10-142 - Utility Write Offl
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REPORT
Report To: Mayor Carl Zehr and Members of Council
Date of Meeting: September 7, 2010
Submitted By: Dan Chapman, General Manager of Financial Services
Prepared By: Joyce V. Evans, Director of Revenue (Ext. 2895)
Ward(s) Involved: All
Date of Report: September 1, 2010
Report No.: FIN-10-142
Subject: Uncollectable Utility Accounts Write Off
RECOMMENDATION:
That Uncollectable Utility Accounts, amounting to $78,145.99 be written
off against the Allowance for Doubtful Sundry Receivables and the
Allowance for Doubtful Utility Receivables.
EXECUTIVE SUMMARY:
The last write off report for Uncollectable Utility Accounts approved by Council in February 2010
totalling $52,909.16 and covered the period up to the end of December 2009. The current
report reflects uncollectable utility accounts totalling $78,145.99 for the period from 2007 and
ending June 30, 2010.
BACKGROUND:
The current report represents write off of utility accounts which have been deemed to be
uncollectable up to the end of June 2010.
Council approved a collection policy for utilities which recommended that the targeted upper
limit for write-offs be set at 0.3%. Staff continue their efforts in reducing the level of delinquent
accounts and to maintain write-offs at below the targeted upper limit as recommended by
Council.
REPORT:
All reasonable efforts have been made by Revenue Division staff to collect these amounts.
These outstanding balances will be written off and will be forwarded to a collection agency.
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The cumulative write-offs shown by year as a percentage of total invoices billed are as follows:
20010 Uncollectable Utility Account Write-Off
Detailed summary
Cumulative Write-
offs Total $ invoiced
Year to date Write-offs as a
% of sales
2010 $ 34, 5283.20 $ 98, 844, 000 0.0349%
2009 $148,245.03 $164,227,000 0.0903%
2008 152, 553.52 161, 658, 000 0.0944%
2007 152,117.99 148,670, 000 0.1023%
2006 159, 001.94 136, 419, 000 0.1166%
Total $646, 446.68 $ 709, 818, 000 0.0911
If you have any questions or concerns regarding any of these amounts to be written off, we
would be happy to address your concerns.
FINANCIAL IMPLICATIONS:
The cumulative total write off of $646,446.68 represents approximately 0.0911 % of the total
utility billings of $709,818,000 for the period covered in the report. This is in line with the
recommended targeted upper level for write-offs of 0.3% in the Utility Collection Policy as
approved by Council. Staff will continue their efforts in managing delinquent accounts to
ensure that the write-offs are at a minimum.
CONCLUSION:
It has been determined that $78,145.99 of utility accounts is uncollectable and staff
recommends that the accounts be written off in June 2010. The uncollectable accounts listing
will be forwarded to a collection agency, which will use their best efforts to collect these
accounts.
ACKNOWLEDGED BY: Dan Chapman, CA, MPA
General Manager of Financial Services & City Treasurer
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