May 19, 2026
DocID #69194v1
Finance Department
DATE: May 19, 2026
TO: Mayor Martinez and Members of the City Council
FROM: Emily Combs, Finance Director
Mubeen Qader, Deputy Director of Finance
Antonio Banuelos, Accounting Manager
Subject: Approval of Write-Off of Uncollectible Accounts Receivables
FINANCIAL IMPACT: Approval of this item will result in the write-off of $535,499.12 in uncollectible accounts receivable, of
which $371,794.26 is in the General Fund for Fiscal Year 2025-2026. Amounts not previously reserved will be
recognized as an expense in the current fiscal year in
accordance with the City’s Administrative Policy AP 251.
PREVIOUS COUNCIL
ACTION:
January 7, 2025
STATEMENT OF THE
ISSUE:
City staff requests that the City Council approve the
write-off of delinquent and uncollectible accounts in
accordance with the City’s established process for
reviewing accounts receivable, evaluating collectability, and writing off accounts for which the likelihood of
collection is remote, as outlined in Administrative Policy AP 251 within the City of Richmond Administrative Policy Manual.
RECOMMENDED ACTION: ADOPT a resolution authorizing the write-off of delinquent and/or uncollectible accounts receivable in the amount of $535,499.12 – Finance Department (Emily
Combs/Mubeen Qader/Antonio Banuelos 510-620 –
6741).
AGENDA
REPORT
May 19, 2026
DocID #69194v1
DISCUSSION:
The Finance Department conducts extensive collection efforts before determining that an account should be deemed uncollectible. Accounts that are written off remain owed to the City of Richmond and will be referred to the City’s contracted collection agency.
To comply with federal regulations and Generally Accepted Accounting Principles (GAAP), the Finance Department must ensure that the City’s assets are presented accurately. Administrative Policy AP 251, within the City of Richmond Administrative Policy Manual, provides guidance to ensure that accounts receivable are properly stated, that delinquent accounts are identified, and that such accounts are removed (written off) from the City’s financial records when appropriate.
Approval by the City Council is required for these write-offs pursuant to this policy.
By approving the proposed write-off, the items identified as more than one year outstanding may be removed from the City’s financial system. Portions of these receivables have already been included in the City’s Allowance for Doubtful Accounts.
Any remaining amount not previously reserved will be recognized as an expense in the current period upon write-off. The write-off includes:
RETURNED CHECKS
All reasonable collection efforts have been exhausted, and the passage of 90 days has deemed the account uncollectible. Some of these amounts may still be recovered if payment is ultimately received.
$3,009.45 is due to the Port of Richmond.
$6,333.98 is due to Planning & Building. This amount reflects checks returned by the bank and is separate from unpaid amounts listed below. $7,650.00 is due to Rent Control.
$39,528.00 is due to Encroachments.
$49,146.19 is due to the General Fund.
BUILDING & PLANNING
$20,188.57 is due for delinquent Planning fees.
$37,435.83 is due for delinquent Building fees.
LIBRARY
$49,050.28 is due for delinquent Library Fees.
COMMUNITY SERVICES
$201,482.11 is due for delinquent Community Services fees.
May 19, 2026
DocID #69194v1
2021 CYBER FRAUD
$121,674.71 represents the remaining balance from a 2021 cyber fraud payment.
The original amount of 196,674.71 was partially reimbursed through an insurance payment of $75,000.00. The outstanding balance of $121,674.71 has been deemed unrecoverable.
Note: Administrative Policy AP 251, within the City of Richmond Administrative Policy Manual, provides guidance for delinquent accounts of $100 or less that are deemed uncollectible by the Finance Department Director and reported to the City Council by notification. The total amount of these accounts is $6,676.41.
NEXT STEPS:
Most customers with invoices listed in the attachments have been contacted multiple times in an effort to collect payment. With no response, these items will be written off, which includes their removal from the City’s financial system. After approval, the accounts will be forwarded to the City’s collection agency.
DOCUMENTS ATTACHED:
Attachment 1 – Outstanding Accounts Receivable, by Fund, Source, Year and Customer
Attachment 2 – Finance Department Resolution - Write Off Delinquent AR