AGENDA TITLE:
title
Adopt a Resolution Authorizing the Acting City Manager to Execute the Write-Off of General Billing Bad Debts from Fiscal Years 2017 to 2021 and Approve the Total Write-Off Amount of $245,550 (IS - FIN)
end
MEETING DATE:
November 5, 2025
PREPARED BY:
Tarra Sumner, Revenue Manager
recommendation
RECOMMENDED ACTION:
Adopt a Resolution authorizing the Acting City Manager to execute the write-off of general billing bad debts and approve the total write-off amount of $245,550 recorded in fiscal year 2025.
body
BACKGROUND INFORMATION:
On April 20, 2022, the City Council adopted Resolution No. 2022-100 approving the Collection and Write-Off of Uncollectable General Billing policy ("Policy"). In the Policy, the Finance Department/Revenue Division is responsible for identifying and writing off bad debt once considered uncollectible. Several departments utilize the general billing for fees, fines, and charges of services rendered. When these charges remain uncollectible, they accumulate in the General Ledger accounts and can lead to inaccurate financial reporting.
The Policy provides for the following collection processes: in-house collection, external debt collection, and write-off. Debt is collected through general billing for 45 days after due date. After 45 days have passed, the debt is referred to an outside collection agency. The external collection agency will send letters for 45 days; on the 46th day, active collections will be implemented. Using an outside collection agency may increase collection before the write-off and lessen the amount to write-off. After four years of non-payment, the debt will be cleared from the City's financial system following the write-off process.
There will be situations where difficulty will be experienced with recovering a debt. The debt collection process can reach a point where it is inappropriate, overly expensive, or uneconomic to pursue further action. It would be more cost-effective fo...
Click here for full text