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Elk River <br />~° Municipal Utilities <br />13069 Orono Parkway • P.O. Box 430 <br />Elk River, MN 55330-0430 <br />UTILITIES COMMISSION MEETING <br />Phone: 763.441.2020 <br />Fax: 763.441.8099 <br />www.elkriverutilities.com <br />TO: FROM: <br />Elk River Municipal Utilities Commission Theresa Slominski -Finance Director <br />John Dietz, Chair <br />Daryl Thompson, Vice Chair <br />Allan Nadeau, Trustee <br />MEETING DATE: AGENDA ITEM NUMBER: <br />A ril 10, 2012 5.3 <br />SUBJECT: <br />First uarter Write-offs <br />BACKGROUND: <br />First quarter write-offs are presented for your review. These amounts cover items from <br />_ December 2011 through March 2012 and total $30,960.61. This amount is comprised of <br />~ $2,750.98 in accounts sent to a collection agency for further collection efforts, and $1,471.70 <br />that are written off with no further collection efforts. Utilizing the Revenue Recapture program <br />available through the state, we submitted $24,015.61 to be collected. There is also $2,722.32 that <br />will be assessed this fall for the assessable services of water, sewer, and trash. <br />DISCUSSION: <br />The Revenue Recapture program has proved a great resource to help collect electric accounts. <br />When there are multiple services with the electric accounts, we have been including the other <br />services also. Year to date we have collected $8,152.49 on amounts filed since September of <br />2011, when we first started submitting past due electric accounts with Revenue Recapture. <br />Previously, we would be writing off these amounts, and maybe have some success in collecting <br />through a third party collection agent. Having this program available prior to resorting to a <br />collection agent is very helpful. We will continue to update you on the amounts collected <br />through this program. <br />Excluding the assessable amounts, and those amounts sent to Revenue Recapture, this would <br />result in less than .00015% of total sales for projections of 2012 bad debt expense. Our budgeted <br />amount is $105,000 or .35%. <br />ACTION REQUESTED: <br />Staff recommends that the Elk River Municipal Utilities Commission accept this write-off listing <br />for the first quarter of 2012. <br />POYIwwEREB BI <br />~A~~~~ <br />P O W E 0.E 0 T O S f 0.V E <br />