5.4. ERMUSR 04-12-2011 - Laserfiche WebLink

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Elk River ^-~ Municipal Utilities 13069 Orono Parkway • P.O. Box 430 Elk River, MN 55330-0430 UTILITIES COMMISSION MEETING v~ ~~ Phone: 763.441.2020 Fax: 763.441.8099 TO: FROM: Elk River Municipal Utilities Commission Theresa Slominski -Finance Director John Dietz, Chair Daryl Thompson, Vice Chair Allan Nadeau, Trustee MEETING DATE: AGENDA ITEM NUMBER: A ril 12, 2011 5.4 SUBJECT: First uarter Write-offs BACKGROUND: First quarter write-offs are presented for your review. These amounts cover items since from October 2010 through March 2011 and total $19,664.08. This amount is comprised of $16,040.81 in accounts sent to a collection agency for further collection efforts, and $221.18 that are written off with no further collection efforts. There is also $3,402.09 that will be assessed this fall for the assessable services of water, sewer, and trash. DISCUSSION: The amounts for electric services that we have been unable to collect on are $15,055.47. As noted before, there is a $50 minimum limit for assessment and when amounts fall below that, there is no recourse but collection. Therefore, there are some assessable services of water, sewer, and trash that appear in the collection write-off column. Excluding the assessable amounts, this would result in less than 1/2% (.23%) of total sales for projections of 2011 bad debt expense. Our budgeted amount is $100,000 or .35%. ACTION REQUESTED: Staff recommends that the Elk River Municipal Utilities Commission accept this write-off listing for the first quarter of 201 1.