ADMINISTRATIVE REPORT
MEETING DATE: June 24, 2026 AGENDA CATEGORY: Consent - Miscellaneous TO: Honorable Mayor and City Council
FROM: Randy McKeegan, Finance Director
DATE: June 9, 2026
SUBJECT: Authorize the Finance Director to write off accounts receivable in various funds totaling $167,018.84 and forward non-bankrupt accounts to a collection agency for additional collection efforts.
RECOMMENDATION:
Staff recommends approval.
BACKGROUND:
The staff has exhausted all possible means at its disposal to collect these past due accounts. Generally, individuals cannot be located, or bankruptcies are involved, and further collection efforts would result in excessive cost. Accounts not involving bankruptcy will be forwarded to a collection agency (Collection Bureau of America) for further action. Historically 5-7% of City accounts forwarded to a collection agency are eventually recovered.
Account detail is attached. The amount recommended is made up of the following account categories:
Commercial Sewer Service & Solid Waste (Refuse) $1,054.50 Police $45,659.47
Fire & Fire Safety $116,828.41
Other $3,476.46
TOTAL $167,018.84
Total billing for the fiscal year ending 06/30/2026 is roughly $111 million. The recommended write-off amount is approximately 0.002% of total billing. The City determines its acceptable write-off benchmark using historical data, which generally falls be low 0.002% of total billing. Bankruptcy proceedings and Judgements make up 1% ($1,054.50) of the write off amount. In the bankruptcy cases, claims have been filed with the court where applicable. Once bankruptcy is filed, the debtor is protected by the court, and we are prohibited by law from further collection efforts.
The collection process for invoiced accounts begins after an invoice is unpaid for 30 days with a computer generated past due notice which continues every 30 days. Additionally, past due letters are sent, and phone contact is initiated at 90 days delinquent. Larger balances are given priority attention.
FISCAL IMPACT:
$167,018.84
COUNCIL GOAL:
Innovative and Efficient City Government
ATTACHMENTS:
Write offs 25-26 FY