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).