AGENDA TITLE:
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Adopt a Resolution Authorizing the City Manager to Execute Annual General Billing Bad Debt Write-Offs and Approving the Write-Off of Uncollectable General Billing Accounts for the Period of 2019 through March 31, 2026, in an Amount Not to Exceed $313,976.48 (IS - FIN)
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MEETING DATE:
July 01, 2026
PREPARED BY:
Tarra Sumner, Revenue Manager
recommendation
RECOMMENDED ACTION:
Adopt a Resolution Authorizing the City Manager to Execute Annual General Billing Bad Debt Write-Offs and Approving the Write-Off of Uncollectible General Billing Accounts for the Period of 2019 through March 31, 2026, in an Amount Not to Exceed $313,976.48.
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BACKGROUND INFORMATION:
The Finance Department’s Revenue Division is responsible for administering the City’s general billing program, including the collection of outstanding accounts and the write-off of debts determined to be uncollectible. General billing is used by several City departments to invoice fees, fines, and charges for services rendered.
Retaining uncollectible accounts receivable on the City’s books can overstate assets and result in inaccurate financial reporting. Accordingly, accounts that have exhausted reasonable collection efforts and are deemed uncollectible should be written off in accordance with the City’s debt collection practices.
The Revenue Division follows a structured collection process that includes in-house collection efforts, referral to an external collection agency, and, when appropriate, write-offs. Accounts generally remain in internal collections for 45 days after the due date before being referred to an outside collection agency. External collection efforts continue before staff evaluates whether additional collection activity is economically justified.
In certain circumstances, continued collection efforts are not practical or cost-effective. Examples include situations where:
• The debtor cannot be located;
• The cost of further collection exceeds the amount owed;
• The debtor is deceased and the debt is uncollectible;
• The debtor has filed for bankruptcy;
• Staff determines the debt is otherwise uncollectible based on available information; or
• The debt is subject to a legal judgment or court order.
The total amount recommended for write-off is $313,976.48 for accounts accumulated between 2019 and March 31, 2026. This amount reflects multiple years of uncollectible receivables and represents a one-time effort to eliminate aged balances from the City’s records. Going forward, staff will process write-offs annually, resulting in lower write-off amounts and more timely financial reporting.
The recommended write-off amount is based on outstanding balances as of May 14, 2026. Actual write-offs may be lower if payments are received through ongoing collection efforts before the write-off is processed.
FISCAL IMPACT:
Approval of the write-off authorizes the removal of uncollectible accounts receivable from the City’s financial records. The total amount authorized for write-off is $313,976.48. Because these amounts are considered uncollectible, the write-off is an accounting action intended to accurately reflect the value of the City’s receivables and does not require additional appropriations.
FUNDING AVAILABLE:
Not applicable.