Agenda Report
Fullerton City Council
MEETING DATE: September 20, 2022
TO: CITY COUNCIL / SUCCESSOR AGENCY
SUBMITTED BY: Ellis chang, director of administrative services PREPARED BY: toni smart, fiscal services manager
john ji, accounting supervisor
SUBJECT: accounts receivable write-off authorization
SUMMARY
City Council consideration to authorize write-off of $57,931.96 uncollectable and aged accounts receivables.
RECOMMENDATION
Authorize City Manager or Administrative Services Director to write-off $57,931.96 against the appropriately determined Fund attributed to the receivable.
CITY MANAGER REMARKS
The City Manager recommends write-off approval as the underlying miscellaneous receivables requested are all three years delinquent or longer and no longer collectible and the alarm permit and false alarm receivables requested are tied to deactivated alarms with unsuccessful collection efforts.
PRIORITY POLICY STATEMENT
This item matches the following Priority Policy Statements:
Fiscal and Organizational Stability
Infrastructure and City Assets.
FISCAL IMPACT
$56,846.96 net reduction of revenue in General Fund and $1,085 in Sanitation Fund.
DISCUSSION
Staff reviews aged uncollected accounts receivables, driven partly by the general and utility billing system implementation and as part of fiscal year end. This process will continue throughout Fiscal Year 2022-23 so the City can migrate clean data when the billing system goes live (tentatively Summer 2023). Thereafter, this review should recur annually.
The City has varying types of accounts receivable:
security alarm permit billing
false alarm billing
down payment assistance (DAP) billing
property and cell tower billing
fire alarm permit billing
fire clearance billing
motor fuel disposal billing
special police services billing
property damage billing
other miscellaneous billings.
The City will review aged outstanding receivables throughout Fiscal Year 2022-23.
Staff recommends the following receivables and/or billings identified for write-off as the first phase of this review process:
$13,307.96 of property damage, emergency response, fire false alarms and fire clearance receivables billed prior to August 1, 2018 no longer collectible due to the statute of limitations and a $45.60 late fee billed in June 2019:
$12,222.96 proposed to write-off against General Fund
$1,085.00 proposed to write-off against Sanitation Fund. $44,624 of alarm permit and false alarms no longer collectible because the owner deactivated the alarm and all efforts to collect were unsuccessful. The City will write-off these aged receivables against the General Fund.
Next Steps
Staff will continue reviewing aged accounts receivables between one- and three-years delinquent. Administrative Services will identify and propose subsequent aged receivables to write-off with support from departments responsible for managing and monitoring the different types of receivables. Staff will bring these write-off requests to City Council for consideration.
Attachments:
Attachment 1 - Uncollectable Miscellaneous Receivables
Attachment 2 - Uncollectable Alarm Permits and False Alarms cc: City Manager Eric J. Levitt
Accounts Receivable Write-Off Authorization
September 20, 2022 - Page 2