5.3. ERMUSR 02-09-2016 - Laserfiche WebLink

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There are no amounts listed for assessments as the process for assessments culminates in the last quarter from information previously submitted to other collection services and if not collected, removed and assessed. Currently, all services—so even those assessable services of sewer, water, and trash—are submitted with the amounts at RR in the hopes that they will be collected. Items not collected by assessment time are removed from RR and assessed instead. (When comparing years,please note that in 2014 we had some assessment amounts that were not able to be submitted to RR, and so are presented in the assessment column separately.) The Commission approved the assessment listing for 2015 at the November 2015 meeting. Amounts submitted for the quarter to the collection agency(A) are $5,861.75, including $4,190.84 also submitted to revenue recapture, and$7,503.73 year-to-date. (For those funds submitted to both resources, as we collect from either resource we remove the dollars at the second resource.)Note that assessable items are included here, as mentioned above. Amounts submitted for the quarter to Revenue Recapture(R) are $13,963.55, including $4,190.84 also submitted to the collection agency and$51,519.35 year-to-date. (As mentioned above, for those funds submitted to both resources, as we collect from either resource we remove the dollars at the second resource.)Note that assessable items are also included here as mentioned above. We have collected$28,143.61 from RR in 2015, or 55%of those dollars submitted-and we are able to retain 100% of those dollars collected. The fourth quarter totals for(A), (B), and(R) are $15,634.46. To break these totals down by provider, it is $14,258.95 for Electric, $295.52 for Water, $239.40 for Sewer, $212.16 for Security, $597.18 for Franchise Fees, and$31.25 for Storm Water. The amount for fourth quarter Write-Offs is $42,771.55, with a year-to-date total of$43,312.49 (including a$1,668.21 reduction due to collections on amounts previously written off.) There is a large dollar amount for a single customer of$42,219.73. We may collect some of this from the customer but it is a very slight chance and so the full balance was removed from our Accounts Receivable and written off to bad debt. It seems every few years we have a business customer that leaves us with a balance of some magnitude that skews the average bad debt numbers. While the incidence is unfortunate, it shouldn't reflect poorly on the steady, successful collection efforts from our staff and third party resources. Without their dedication, the numbers would be much higher. Our budgeted amount for collections and write-offs are $105,000, or.30%uncollectible accounts per revenue dollar. According to APPA's most recent published standard ratios (2013), the industry standard is between.18%and.37%. Even with the large customer write-off, our totals, excluding RR and Assessments, for the year are still below the national average, at.15%. ACTION REQUESTED: Staff recommends that the Elk River Municipal Utilities Commission accept this delinquent amounts listing for the fourth quarter of 2015. ATTACHMENTS: • Delinquent Items Color Coded Recap Comparison for 2014/2015 • Fourth Quarter 2015—Delinquent Amounts Listing P O w E N E 0 IT INATURE Reliable Public P OWERED T O S ERV E Power Provider 111