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    17.    
City Council Regular
Meeting Date: 09/10/2019  

SUBJECT:
WRITE-OFF OF UNCOLLECTIBLE ACCOUNTS
RECOMMENDATION:
Authorize the write-off of $25,979.03 in uncollectible utility accounts receivable and general accounts receivable incurred prior to July 1, 2018.
BACKGROUND/ANALYSIS:
Annually, City staff requests City Council approval to write-off uncollectible accounts that were incurred more than a year prior. The City bills for water, sewer, and trash removal services, damage to City property, fines incurred for false alarm response and other miscellaneous items. When customers do not pay the amount due on time, staff pursues collection until it is no longer cost effective at which time the past due invoice is turned over to the City's collection agency. Once the items are approved for write-off, the collection agency will still continue their efforts in collecting the debt. 

The Fiscal Year 2019-20 proposed write-off is less than 1% of the $5.2 million in accounts receivable on the books in the Water Fund, Sewer Fund, Solid Waste Fund, or General Fund at June 30, 2018. Generally, the uncollectible amounts consist of water/sewer/trash service customers who have left the City and refuse to pay their final utility bill. Of the $25,979.03 that is being recommended for write-off, $21,281.07 consists of these unpaid utility bills (Attachment No. 1). The City utilizes utility service shut-offs to prevent current customers from accumulating large past due amounts. The remaining balance of the write-offs in the amount of $4,697.96 consists of property damage charges and field lighting charges (Attachment No. 2). 
ENVIRONMENTAL (CEQA) REVIEW:
This recommended action is exempt from  review under  the California Environmental Quality Act (California Public Resources Code §§ 21000, et seq., "CEQA") and CEQA regulations (14 California Code of Regulations ("CCR") §§ 15000, et seq.) because this action involves government fiscal activities which do not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment and constitute an organizational or administrative activity that will not result in direct or indirect physical changes in the environment. Accordingly, the recommended action does not constitute a "project" that requires environmental review (see specifically 14 CCR § 15378(b)(4-5)).
 
FISCAL IMPACT:
The proposed write-off of the uncollectible accounts receivable will decrease fund balance in various City funds by $25,979.03.
Attachments
Attachment 1 - Uncollectible Utility Accounts
Attachment 2 - Uncollectible Miscellaneous Accounts

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