AGENDA TITLE:
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Adopt a Resolution Authorizing the City Manager to Execute the Write-off of Uncollectible Utility Billing Accounts for the Period of 2020 through March 31, 2026, and Approve a Total Write-off Amount Not to Exceed $3,007,846.11 (IS - FIN)
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MEETING DATE:
July 1, 2026
PREPARED BY:
Tarra Sumner, Revenue Manager
recommendation
RECOMMENDED ACTION:
Adopt a Resolution authorizing the City Manager to execute the write-off of uncollectible utility billing accounts for the period 2020 through March 31, 2026, and approve a total write-off amount not to exceed $3,007,846.11.
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BACKGROUND INFORMATION:
The Finance Department, through the Revenue Division, is responsible for administering the City’s utility billing system and processing the write-off of accounts determined to be uncollectible. The Electric Utility, Public Works, and Finance departments utilize the utility billing system to assess and collect fees, charges, and other amounts due.
Retaining uncollectible accounts receivable on the City’s books may overstate assets and result in inaccurate financial reporting. Accordingly, accounts that have exhausted reasonable collection efforts are deemed uncollectible and should be written off in accordance with the City’s debt collection practices.
The utility billing module has not undergone a comprehensive write-off process since the implementation of Tyler Munis, in 2017. Staff is currently reconciling and reviewing aged accounts to ensure the City’s financial records accurately reflect collectible balances. This proposed write-off represents a one-time cleanup of accumulated uncollectible accounts. Following completion of this effort, staff intends to perform write-offs on a regular basis to maintain accurate financial reporting.
The City follows a structured collection process that includes in-house collection efforts, referral to an external collection agency, and, when appropriate, the write-off of accounts determined to be uncollectible. These collection efforts are designed to maximize recoveries before accounts are removed from the City’s financial records.
In certain circumstances, continued collection efforts become impractical or uneconomical. Examples include situations where the debtor cannot be located, has filed for bankruptcy, is deceased, the cost of further collection exceeds the amount owed, or staff otherwise determines the debt is uncollectible. In such cases, authorizing a write-off is the most appropriate and cost-effective course of action.
The total amount recommended for write-off is $3,007,846.11 for accounts accumulated between 2020 and March 31, 2026. This amount reflects multiple years of aged and uncollectible utility billing receivables. Staff anticipates that future write-off amounts will be significantly lower as a result of routine annual write-offs and continued diligence in collection efforts.
FISCAL IMPACT:
The proposed write-off authorizes the removal of uncollectible accounts receivable totaling $3,007,846.11 from the City’s financial records. As an accounting action, the write-off improves the accuracy of the City’s reported receivables and does not represent a new expenditure. Future write-off amounts are expected to fluctuate based on the accrual and aging of uncollectible accounts.
FUNDING AVAILABLE:
Not applicable.