5.5. ERMUSR 10-11-2011 - Laserfiche WebLink

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ElkRiver = , Municipal Utilities 13069 Orono Parkway • P.O. Box 430 Elk River, MN 55330-0430 UTILITIES CONIMISSION MEETING eew€sEO ®~ ~A~u~~ P p W E R E D T O S E R V E Phone: 763.441.2020 Fax: 763.441.8099 TO: FROM: Elk River Municipal Utilities Commission Theresa Slominski -Finance and Office John Dietz -Chair Manager Daryl Thompson -Vice Chair Al Nadeau -Trustee MEETING DATE: AGENDA ITEM NUMBER: October 11, 2011 5.5 SUBJECT: Review and Consider 3'~ Quarter Write-Offs BACKGROUND: Third quarter write-offs are presented for your review. These amounts cover items through August 2011 and total $13,016.59. This amount is comprised of $4,768.22 in accounts sent to a collection agency for further collection efforts, and $95.04 that are written off with no further collection efforts. There is also $8,153.33 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 $4,707.48. (Additionally, we have filed $5,968.59 with the Revenue Recapture program that will hopefully be collected as individuals file their taxes.) 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. Our total write-offs for first, second, and third quarter are $55,271.36. (Last year's total of write- offs for the three quarters was $89,757.97.) 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 second quarter of 2011. ATTACHMENTS: 3rd Quarter Write-Offs Listing