HomeMy WebLinkAboutFIN-2025-316 - Uncollectable Utility Receivable Account Write-OffStaff Report
Financial Services Department www.kitchener.ca
REPORT TO: Planning and Strategic Initiatives Committee
DATE OF MEETING: September 8, 2025
SUBMITTED BY: Saleh Saleh, Director, Revenue, 519-904-6308
PREPARED BY: Marcy Ignor, Manager Utility billing and Customer Service, 519-783-8057
WARD(S) INVOLVED: ALL
DATE OF REPORT: July 7, 2025
REPORT NO.: FIN -2025-316
SUBJECT: Uncollectable Utility Receivable Account Write -Off
RECOMMENDATION:
That uncollectable utility accounts amounting to $121,784 be written off against the
allowance for doubtful utility receivables.
REPORT HIGHLIGHTS:
• As per council policy, approval from Council is required for accounts to be written -off and
sent to an outside collection agency for third party collection efforts.
• Staff have worked diligently in attempting to collect on these accounts but have not been
successful in the process.
• This report recommends that accounts totalling $121,784 be written off and forwarded to an
outside collection agency.
• This report supports the delivery of core services.
BACKGROUND:
As per council policy FIN -FEE -517 Utility and Miscellaneous Receivable policy, approval from
Council is required for accounts to be written -off and sent to an outside collection agency for
third party collection efforts.
Utilities receivable represent invoices generally billed through the city's SAP utility billing system.
The majority of these invoices relate to usage for Gas and Water. The current report represents
write-off of utility accounts which have been deemed to be uncollectable up to the end of June
30 2025.
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REPORT:
Staff are recommending that accounts totalling $121,784 be written off and forwarded to the
collection agency. Staff have worked diligently in attempting to collect on these accounts but
have not been successful either due to the customer declaring bankruptcy or having no
forwarding address. Any tenant deposits previously received on the uncollectable accounts
have been applied to reduce the debt outstanding. A total of 172 customer accounts are being
recommended to be written off and transferred to a third -party collection agency.
The collection procedures staff have undertaken include:
• Sending customers statements and demand letters.
• Verbal request by telephone or in person.
• Negotiating revised payment terms.
• Applying any deposits held to the outstanding amounts.
• Transferring uncollectable items to the customer's property tax account where permitted
by the Municipal Act.
The cumulative amount of utility write-offs identified in this report equal $121,784 and relate to
the years 2023, 2024 and 2025. The cumulative write-offs are shown in the table below and the
average is well below the targeted upper limit for write-offs set at 0.3% previously approved by
Council.
A five-year summary of write-offs is included in the table below.
Utility Accounts Write-off
Cumulative
Total $ Invoiced
Write-offs as a
Write-offs for the Year
Year to Date
%of Sales
2025
$ 14,110
$ 141,485, 522
0.0100%
2024
$ 206,894
$ 250, 506, 834
0.0826%
2023
$ 196,527
$ 248, 049, 552
0.0792%
2022
$ 154,220
$ 233, 620, 592
0.0660%
2021
$ 171,585
$ 216, 217, 805
0.0794%
Tota I
I $ 743,336
$ 1, 089, 880, 305
0.0682%
STRATEGIC PLAN ALIGNMENT:
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The recommendation of this report supports the achievement of the city's strategic vision through
the delivery of core service.
FINANCIAL IMPLICATIONS:
The uncollectable accounts will be written off against the Allowance for Doubtful Utility
Receivables account.
COMMUNITY ENGAGEMENT:
INFORM — This report has been posted to the City's website with the agenda in advance of the
council / committee meeting.
PREVIOUS REPORTS/AUTHORITIES:
• FIN -FEE -517 Collections- Utility and Miscellaneous Receivable
APPROVED BY: Jonathan Lautenbach, Chief Financial Officer, Financial Services
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