AGENDA TITLE:
title
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)
end
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.
body
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 exceed...
Click here for full text