5.3. ERMUSR 02-09-2016 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:
February 9, 2016 5.3
SUBJECT:
2015 Fourth Quarter Delinquent Items
BACKGROUND:
Fourth quarter delinquent items are presented for your review. We have previously reported on
four different categories of delinquents as follows:
• Assessments are delays in collecting the money owed and is assessed to the property
taxes in the fall.
• Collections amounts are those we send to the collection agency to try and collect after
we have exhausted all our internal collection efforts. We receive 70% of amounts
collected.
• Revenue Recapture (RR) 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 splitting with a
collection agency or having to write them off completely.
• Write Offs are amounts removed from the books with no further collection efforts
being extended.
DISCUSSION:
The attached report shows those dollars submitted to the collection agency(A),those submitted
to both the collection agency and revenue recapture(B), and those submitted to revenue
recapture(R).
I also have for review the color-coded recap comparisons with last year, identifying the four
categories and the running totals. When comparing the far right totals columns for 2014 and
2015,note that we have a larger amount for 2015. The difference is in the amounts for RR,
because the prior year amount is reduced by amounts collected and we are only showing
amounts submitted for the current year(so the comparative numbers are skewed.) We also have
a large write-off this year for an Otsego company that closed and left us with a substantial bill.
IPOWERED D 1
® NATURE
Reliable Public P OWERED T o S ERV E
Power Provider
110
There are no amounts listed for assessments as the process for assessments culminates in the last
quarter from information previously submitted to other collection services and if not collected,
removed and assessed. Currently, all services—so even those assessable services of sewer, water,
and trash—are submitted with the amounts at RR in the hopes that they will be collected. Items
not collected by assessment time are removed from RR and assessed instead. (When comparing
years,please note that in 2014 we had some assessment amounts that were not able to be
submitted to RR, and so are presented in the assessment column separately.) The Commission
approved the assessment listing for 2015 at the November 2015 meeting.
Amounts submitted for the quarter to the collection agency(A) are $5,861.75, including
$4,190.84 also submitted to revenue recapture, and$7,503.73 year-to-date. (For those funds
submitted to both resources, as we collect from either resource we remove the dollars at the
second resource.)Note that assessable items are included here, as mentioned above.
Amounts submitted for the quarter to Revenue Recapture(R) are $13,963.55, including
$4,190.84 also submitted to the collection agency and$51,519.35 year-to-date. (As mentioned
above, for those funds submitted to both resources, as we collect from either resource we remove
the dollars at the second resource.)Note that assessable items are also included here as
mentioned above. We have collected$28,143.61 from RR in 2015, or 55%of those dollars
submitted-and we are able to retain 100% of those dollars collected.
The fourth quarter totals for(A), (B), and(R) are $15,634.46. To break these totals down by
provider, it is $14,258.95 for Electric, $295.52 for Water, $239.40 for Sewer, $212.16 for
Security, $597.18 for Franchise Fees, and$31.25 for Storm Water.
The amount for fourth quarter Write-Offs is $42,771.55, with a year-to-date total of$43,312.49
(including a$1,668.21 reduction due to collections on amounts previously written off.) There is
a large dollar amount for a single customer of$42,219.73. We may collect some of this from the
customer but it is a very slight chance and so the full balance was removed from our Accounts
Receivable and written off to bad debt. It seems every few years we have a business customer
that leaves us with a balance of some magnitude that skews the average bad debt numbers.
While the incidence is unfortunate, it shouldn't reflect poorly on the steady, successful collection
efforts from our staff and third party resources. Without their dedication, the numbers would be
much higher.
Our budgeted amount for collections and write-offs are $105,000, or.30%uncollectible accounts
per revenue dollar. According to APPA's most recent published standard ratios (2013), the
industry standard is between.18%and.37%. Even with the large customer write-off, our totals,
excluding RR and Assessments, for the year are still below the national average, at.15%.
ACTION REQUESTED:
Staff recommends that the Elk River Municipal Utilities Commission accept this delinquent
amounts listing for the fourth quarter of 2015.
ATTACHMENTS:
• Delinquent Items Color Coded Recap Comparison for 2014/2015
• Fourth Quarter 2015—Delinquent Amounts Listing
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Agency Account Sery Addr Provider Total AR
A 27683 11369 189TH AVE 1ERUE 235.67
A 27683 11369 189TH AVE 6CTYF 14.61
A 873 21372 HWY 169 1ERUE 223.10
A 873 21372 HWY 169 6CTYF 5.87
A 873 21372 HWY 169 7CTYS 2.00
A 1145 755 FREEPORT AVE 1ERUE 150.24
A 1145 755 FREEPORT AVE 6CTYF 17.61
A 12963 15377 93RD ST NE 1ERUE 262.24
A 18263 11040 183RD CIR STE C 1ERUE 269.68
A 18263 11040 183RD CIR STE C 2ERUW 11.90
A 18263 11040 183RD CIR STE C 6CTYF 29.39
A 18263 11040 183RD CIR STE C 7CTYS 2.10
A 20378 6895 HILLENDALE RD 5ERUS 212.16
A 27673 1227 SCHOOL ST APT 104 1ERUE 91.13
A 27673 1227 SCHOOL ST APT 104 6CTYF 12.10
A 15422 19529 BOSTON ST 2ERUW 128.11
A 15422 19529 BOSTON ST 7CTYS 3.00
Collection Agency Total 1,670.91
B 30892 300 3RD ST APT 204 1ERUE 62.88
B 30892 300 3RD ST APT 204 6CTYF 11.74
B 23648 18230 ZANE ST 1ERUE 4,028.05
B 23648 18230 ZANE ST 6CTYF 88.17
Both Collection Agency and Revenue Recapture Total 4,190.84
R 29289 11978 191 1/2 AVE APT 201 1ERUE 95.55
R 29289 11978 191 1/2 AVE APT 201 6CTYF 19.57
R 30400 19657 CARSON CIR 1ERUE 612.64
R 30400 19657 CARSON CIR 2ERUW 12.34
R 30400 19657 CARSON CIR 3CTYS 29.40
R 30400 19657 CARSON CIR 6CTYF 17.61
R 30400 19657 CARSON CIR 7CTYS 3.00
R 23156 18443 TROTT BROOK PKWY 1ERUE 465.22
R 23156 18443 TROTT BROOK PKWY 6CTYF 21.89
R 14791 568 DODGE AVE STE C 1ERUE 222.09
R 14791 568 DODGE AVE STE C 6CTYF 89.06
R 14791 568 DODGE AVE STE C 7CTYS 3.15
R 30245 14732 CO RD 30 1ERUE 82.04
R 17720 17848 TYLER ST 1ERUE 803.88
R 17720 17848 TYLER ST 2ERUW 26.64
R 17720 17848 TYLER ST 3CTYS 33.60
R 17720 17848 TYLER ST 6CTYF 24.91
R 17720 17848 TYLER ST 7CTYS 3.00
R 31260 10948 185TH CIR 1ERUE 657.76
R 31260 10948 185TH CIR 2ERUW 19.07
113
R 31260 10948 185TH CIR 3CTYS 25.20
R 31260 10948 185TH CIR 6CTYF 17.45
R 31260 10948 185TH CIR 7CTYS 3.00
R 7506 18279 CONCORD ST 1ERUE 1.28
R 7506 18279 CONCORD ST 2ERUW 0.84
R 7506 18279 CONCORD ST 3CTYS 54.60
R 7506 18279 CONCORD ST 6CTYF 0.53
R 7506 18279 CONCORD ST 7CTYS 3.00
R 29252 380 3RD ST APT 203 1ERUE 439.03
R 29252 380 3RD ST APT 203 6CTYF 17.08
R 15924 11755 191 1/2 AVE APT 302 1ERUE 484.04
R 15924 11755 191 1/2 AVE APT 302 6CTYF 11.74
R 3907 18172 FRESNO ST 1ERUE 369.02
R 3907 18172 FRESNO ST 2ERUW 26.64
R 3907 18172 FRESNO ST 3CTYS 25.20
R 3907 18172 FRESNO ST 6CTYF 5.87
R 3907 18172 FRESNO ST 7CTYS 3.00
R 22884 8763 PARRISH AVE NE 1ERUE 684.76
R 28028 17967 CONCORD ST 1ERUE 1,087.78
R 28028 17967 CONCORD ST 2ERUW 29.30
R 28028 17967 CONCORD ST 3CTYS 29.40
R 28028 17967 CONCORD ST 6CTYF 18.51
R 29407 18594 GARY ST APT 3 1ERUE 148.15
R 29407 18594 GARY ST APT 3 6CTYF 11.74
R 29998 10537 TWIN LAKE PKWY 1ERUE 183.15
R 29998 10537 TWIN LAKE PKWY 2ERUW 21.89
R 29998 10537 TWIN LAKE PKWY 3CTYS 21.00
R 29998 10537 TWIN LAKE PKWY 6CTYF 14.42
R 29998 10537 TWIN LAKE PKWY 7CTYS 3.00
R 30433 1109 SCHOOL ST APT 12 1ERUE 78.44
R 30433 1109 SCHOOL ST APT 12 6CTYF 5.87
R 30576 11940 191 1/2 AVE APT 207 1ERUE 343.51
R 30576 11940 191 1/2 AVE APT 207 6CTYF 17.61
R 30776 18565 ULYSSES ST 1ERUE 697.86
R 30776 18565 ULYSSES ST 2ERUW 18.79
R 30776 18565 ULYSSES ST 3CTYS 21.00
R 30776 18565 ULYSSES ST 6CTYF 11.75
R 30776 18565 ULYSSES ST 7CTYS 3.00
R 31032 1001 SCHOOL ST APT 113 1ERUE 225.17
R 31032 1001 SCHOOL ST APT 113 6CTYF 22.95
R 31486 300 JACKSON AVE APT 306 1ERUE 101.25
R 31486 300 JACKSON AVE APT 306 6CTYF 30.24
R 31499 11978 191 1/2 AVE APT 102 1ERUE 352.14
R 31499 11978 191 1/2 AVE APT 102 6CTYF 19.04
R 31633 200 FREEPORT AVE APT 3 1ERUE 279.67
R 31633 200 FREEPORT AVE APT 3 6CTYF 22.77
R 31725 1001 SCHOOL ST APT 301 1ERUE 216.67
114
R 31725 1001 SCHOOL ST APT 301 6CTYF 17.08
R 31998 18461 ROBINSON ST 1ERUE 32.93
R 32447 10180 PARRISH AVE NE TRAILER H 1ERUE 271.93
Revenue Recapture Total 9,772.71 I
15,634.46 Total I
A Collection Agency 1,670.91
B Both Collection Agency and Reveue Recapture 4,190.84
R Revenue Recapture 9,772.71
15,634.46 Total
115