6.1. ERMUSR 02-12-2013 - Laserfiche WebLink

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Elk River Municipal Utilities 13069 Orono Parkway P.O. Box 430 Elk River, MN 55330 (763) 441-2020 UTILITIES COMMISSION MEETING TO: FROM: Elk River Municipal Utilities Commission Theresa Slominski—Finance and Office John Dietz, Chair Manager Daryl Thompson, Vice Chair Allan Nadeau, Trustee MEETING DATE: AGENDA ITEM NUMBER: February 12, 2013 6.1 SUBJECT: Staff Updates DISCUSSION: We had 1947 credit card payment transactions in January, compared to 1837 in December. The fee for January should be $4,380.75. In response to last months' inquiry about write-offs I have attached a chart itemizing the breakdown of Assessments, Collections, Revenue Recapture, and Write-Offs for each of the four quarters of 2011 and 2012. I have also included the last page of the 4th quarter 2012 report so that you can see how the numbers line up on the chart. An important key to understanding the reports (and something I did not explain well previously) is that the Assessments amounts are cumulative numbers on the reports from quarter to quarter, and are reduced as we file them with the County (the totals decrease in the 4th quarter when we file in November). The Revenue Recapture (RR) totals are also cumulative quarter to quarter and year to year, and are only reduced as we are remitted amounts from the state. As we obtain better history experience with the RR process we can determine when to post actual amounts to bad debt and have them removed from the report, like we currently do for Collection and Write-Off amounts. We have a total of$42,580.86 expensed as bad debt for 2012 - which is the $19,615.10 on the chart, less any amounts collected through the collection agency, and includes a $31,000 accrual for items submitted to Revenue Recapture. This results in a .14% of total sales. We budgeted a total of$105,000 for bad debt, or .35%. E. POWERED BY NATURE Reliable Public ® P O W E R E D T o S E R V E Power Provider