Agenda Report
Fullerton City Council
MEETING DATE: JUNE 20, 2023
TO: CITY COUNCIL / SUCCESSOR AGENCY
SUBMITTED BY: ELLIS CHANG, DIRECTOR OF ADMINISTRATIVE SERVICES PREPARED BY: TONI SMART, FISCAL SERVICES MANAGER
SUBJECT: UNCOLLECTIBLE RECEIVABLES WRITE-OFF REPORT FISCAL YEAR 2022-23
SUMMARY
This agenda item updates City Council on uncollectible receivables written-off upon review and approval delegated by City Council to the City Manager. Staff attached uncollectible delinquent accounts receivable balances under $50,000 written-off in Fiscal Year (FY) 2022-23 to this report.
RECOMMENDATION
Receive and file.
CITY MANAGER REMARKS
Many of the uncollectable receivables are associated with collisions over three years ago and property damage to City property.
PRIORITY POLICY STATEMENT
This item matches the following Priority Policy Statement:
Fiscal and Organizational Stability.
FISCAL IMPACT
The $216,458.99 in write-offs reflected in this report will result in an increase in the expenditure account, Uncollectable Accounts, in FY 2022-23, offsetting revenue recorded in prior fiscal years when the billings occurred. $102,524.87 of the $216,458.99 is attributable to the General Fund.
DISCUSSION
City Council adopted Resolution No. 2023-017 on March 7, 2023 granting authority to the City Manager to write-off certain accounts deemed uncollectable. This resolution authorized the City Manager to write-off accounts under $50,000 which the City has deemed uncollectable within the City Manager determination. Additionally, City Council approved the amended Statement of Financial Policies, adding Section 10 to clarify the processing, collecting and disposing of delinquent receivable balances that included annually informing City Council of the write-offs approved by the City Manager in the preceding fiscal year.
The City Manager authorized writing-off $216,458.99 in uncollectable receivables on March 24, 2023.
Attachments:
Attachment 1 – Write-off Report to City Council
cc: City Manager Eric J. Levitt
Uncollectible Receivables Write-off Report FY 2022-23
June 20, 2023 - Page PAGE \* MERGEFORMAT 2