5.3. ERMUSR 07-13-2010 - Laserfiche WebLink

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UTILITIES COMMISSION MEETING TO: FROM: Elk River Municipal Utilities Commission Theresa Slominski -Finance Director John Dietz, Chair Jerry Gumphrey, Vice Chair D l Thom son, Trustee MEETING DATE: AGENDA ITEM NUMBER: Jul 13, 2010 5.3 SUBJECT: Second uarter Write-offs BACKGROUND: Second quarter write-offs are presented for your review. These amounts cover items since the last write-offs (which were through 3/30/2010) and total. $51,312.33. There are $44,248.54 in accounts sent to a collection agency for further collection efforts, and $468.31 that are written off with no further collection efforts. There is also $6,595.48 in assessments that will be assessed this fall. DISCUSSION: You will notice some sewer and garbage items are included in the Collection column rather than the Assessments column, and that is due to the $50 minimum limit for assessment. Items falling below this minimum will not be able to be assessed, and the only recourse is collection. Of the $51,312.33 write-offs total, there is one large commercial account included for $27,753.79. This customer sent a letter to us stating the business had been sold and that there were no assets in order to file a bankruptcy and no funds in order to satisfy outstanding obligations. This customer had no history of payment delinquencies in the prior 20+ yeazs they were operating. The balance accumulated just in the last three months before the business was sold. It was because of this situation that we have recently revised our customer deposit policy to hold all deposits until the service is terminated with the customer. We aze still pursuing collection efforts with this account via a collection agency, in spite of the letter they provided indicating that would be of no avail. Write-offs in the first quarter were $34,374.96, and there has been just over $5,000 collected the first six months of 2010. With the above mentioned write-offs the yeaz-to-date total would be $80,657.15. ACTION REQUESTED: Staff recommends that the Elk River Municipal Utilities Commission accept this write-off listing for the second quarter of 2010.