5.3. ERMUSR 04-08-2014 i
Elk River —
Municipal Utilities UTILITIES COMMISSION MEETING
TO: FROM:
Elk River Municipal Utilities Commission Theresa Slominski —Finance and Office
John Dietz, Chair Manager
Allan Nadeau, Vice-Chair
Daryl Thompson, Trustee
MEETING DATE: AGENDA ITEM NUMBER:
April 8, 2014 5.3
SUBJECT:
First Quarter Delinquent Items
BACKGROUND:
First quarter delinquent items are presented for your review. The attached report has four
columns: Assessments, Collections, Revenue Recapture (RR), and Write Offs.
• Assessments are delays in collecting the money owed and is assessed to the property
taxes in the fall. (This number will grow each quarter delinquents are presented and
once they are submitted to the County, they no longer appear on the report.)
• Collections amounts are those we send to the collection agency to try and collect after
we have exhausted all our internal collection efforts.
• Revenue Recapture is the program through the state where funds are collected from
individuals' tax refunds and remitted to us, with the balance(if any) remitted to the
individual. It presents an opportunity to collect funds rather than resorting to a
collection agency or having to write them off completely. (This number is the
remaining aggregate amount of all funds submitted through this process since
inception.)
• Write Offs are amounts removed from the books with no further collection efforts
being extended.
DISCUSSION:
These amounts cover items through February 15th 2014, as those amounts would be greater than
ninety days out. If we have notice of bankruptcies or deaths through March 21st, those would
also be included in these amounts.
There are currently no amounts to be assessed next fall for the assessable services of water,
sewer, and trash. Last year's first quarter amount was $1,085.00, and at year end we sent
$4,849.53 to the County for assessment.
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$1,037.74 are accounts sent to a collection agency for further collection efforts, and $354.20 are
written off with no further collection efforts. Last year's first quarter collection agency amounts
were $3,354.76, and the amount for write-offs was $1,311.91.
A net of$6,455.59 was sent to Revenue Recapture(RR). When comparing 2014 to 2013 you
will note that we had collected $11,609.50 more than we submitted, resulting in the credit
balance, which was likely a nonrecurring phenomenon. This year's number reflects a number of
submissions greater than the collections and is more the norm. We have now filed with the state
a net total of$57,555.08 that will remain in the system until it is collected, or we remove it. We
will continue to evaluate the risk of permanent default on the accounts that have the longest
duration on the RR system and determine any amounts necessary for removal.
I have also presented the color-coded recap comparisons with last year, identifying the various
categories and the running totals. When comparing the far right columns for 2014 and 2013, we
had a negative delinquent items total in 2013 because we had collected more through RR than we
had submitted, as discussed above.
Our budgeted amount for collections and write-offs are $105,000 or.30%Uncollectible
Accounts per Revenue Dollar. Our write-offs for the year are well below this number, at a total
of$7,847.53 or .026%. According to APPA's most recent published standard ratios (2012), the
industry standard is between .10%and .41%.
Per State Statute 13.685 for Utility Billing Data, the attached report is not public information and
has been excluded from the public copy and final copy storage of commission meeting
information, and the names have also been omitted in the packet copy.
ACTION REQUESTED:
Staff recommends that the Elk River Municipal Utilities Commission accept this delinquent
amounts listing for the first quarter of 2014.
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