Item #02
Date: July 16, 2024
To: Mayor and City Council
From: Jennifer Styczynski, Finance Director
Jim Schaad, City Manager
Subject: Authorizing Past Due Wastewater Account Collection Write-Off Recommendation:
Pass a Motion adopting Resolution No. 2024-XX, to authorize the write-off of past due uncollectable wastewater accounts in the amount of $3,740.67.
Background:
The City operates a sanitary sewer system within the City limits for the purposes of treating and disposing of wastewater for public and private uses. In order to begin the collection process on past due accounts, the City Council must authorize the write-off of uncollectible accounts for auditing and financial reporting purposes. The bad debt accounts will be sent to a collection agency for possible reimbursement of monies owed to the City.
Discussion & Analysis:
In January 2022, Ordinance No. 1438 was adopted to modify the City’s Municipal Code such that all changes in sewer service and new sewer service shall be in the name of the owner of record as shown on the Yuba County Property Tax Roll. Further, sewer accounts will be transferred to the owner of record when a tenant is more than 30 days delinquent unless a payment plan has been negotiated.
With this update, and the ability to assess liens to property owners for unpaid charges, the number of potential write-offs has been reduced significantly. Utility Management Services (UMS) of Chico, who provides wastewater billing and payment collection services for the City, initiates the follow up with the owners . When a bill becomes final, it is mailed to the most updated mailing address on file. If this final bill is returned with a new address, then it is resent to the new address along with phone calls or emailing the customer to verify the address. Final bills are also emailed if an email address was provided. As we continue moving all accounts to the owner-held at any changeover, the write-offs should continue to go down. It’s always possible, though, to have owners sell without title companies contacting UMS or the City.
When all steps have been taken through UMS, a list will be sent to the City for potential to write-off the amounts through Council approval. Once the list has been approved, City staff will send the information to a collection agency in a final attempt to recover as many funds as possible.
Item #02
Alignment with City Council Goals:
City Council Goal number 1, Fiscal Stability.
Fiscal Analysis:
The potential amount of reimbursements from a collection agency will vary from year to year as the debts are paid off. All revenue received will be account for in the wastewater fund.
Attachments:
1) Resolution No. 2024-XX
2) List of Accounts to Write-Off