5.2 ERMUSR 5-12-2020UTILITIES COMMISSION MEETING
TO:FROM:
ERMU Commission Melissa Karpinski –Finance Manager
MEETING DATE: AGENDA ITEM NUMBER:
May 12, 2020 5.2
SUBJECT:
2020 First Quarter Delinquent Items
ACTION REQUESTED:
Approve the 2020first quarter delinquent itemssubmitted.
BACKGROUND:
First quarter delinquent items are presented for your review. We have previously reported on
the four different categories of delinquents as follows:
Assessments are delays in collecting the money owed and areassessed to the
th
property taxes in the fall. Please note this number will only be presented in the 4
quarter.
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 after the agency receives their split.
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. There is a six-year
limit for keeping items on RR and if uncollected at thattime, amounts are removed
and written off.
Write Offs are amounts removed from the books with no further collection efforts
being extended.
DISCUSSION:
I have for review recap comparisons with last year, identifying the categories and amounts for
each quarter and the running totals. Regarding the first quarter totals:
The amounts listed for assessments culminate in the fourth quarter and include items
previously submitted to other collection services, if not collectedtheyare removed and
assessed. The assessment amount for 2020 is $0.00 as there has been no activity yet for
this year.
The amounts submitted only to Collection Agencies for 2020 is $0. (Please note that
amounts submitted to Revenue Recapture were also submitted to Collection Agencies.)
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The amounts submitted to Revenue Recapture were less thanthe prior year. The Q1
2020 RR amount is $2,707.86. We have collected a total of $8,315.08from RR in Q1
2020.
Write Offs for Q1 2020 were $5,537.23, which is higher than the prior year. The biggest
impact to the Write-Offs is due to the removal of items from the RR program due to a
six-year limit mandated by the state. We have had to remove, and write-off, a total of
$5,529.14 from RR in Q1 2020. However, that still leaves us $2,785.85 ahead with the
$8,315.08 we have collected this quarter through RR.
The attached report listing shows those dollars submitted to both the Collection Agency and RR.
The first quarter totals are $2,707.86. To break these totals down by service, it is $2,445.57 for
Electric, $190.00 for Franchise Fees, $50.95 for Trash, and $21.34 for Storm Water.
The amount for first quarter Write-Offs is $5,537.23 which includes: small balances of $8.09,
amounts removed from RR meeting the six-year limit with the state program of $5,272.24, and
other write-offs of $256.90.
Our allowance for doubtful accounts (a reserve for bad debt/write-offs) is $25,605, or .06%
uncollectible accounts per revenue dollar. According to the American Public Power
Association’s most recent published standard ratios (2017), the industry standard is between
.17% and .40%. Interestingly, the Northern/Central Plains average is .18%. Our totals for the
year are below the national average at .029%.
ATTACHMENTS:
2020 First Quarter Delinquent Items Comparison
2020 First Quarter Delinquent Items Submitted
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DelinquentItemsComparisons
Rev
CollectionRevenueRecap/CollRevRecap
AssessmentsAgencyRecaptureAgenPmts
YearQuarterWriteOffs
201715,739.465,739.46(18.07)12,149.77
20172730.508,617.589,348.08358.056,595.05
201738,319.808,319.80(34.28)5,308.24
201748,352.84180.4010,344.5610,524.962,272.121,472.34
201819,644.999,644.993,383.619,374.71
201826,945.516,945.511,933.723,293.10
201836,233.116,233.115,047.621,496.85
2018410,301.4810,292.9710,292.973,206.461,258.91
201912,911.462,911.462,444.3510,447.26
2019285.778,267.428,353.193,755.568,258.66
201936,750.816,750.811,962.211,855.27
201944,743.535,708.235,708.233,833.531,172.73
202012,707.862,707.865,537.238,315.08
QuarterlyWriteOffsbyYear
6,000
5,000
4,000
Quarter
1
3,000
2
3
2,000
4
1,000
0
2017201820192020
QuarterlyAmtsSubmittedfor
CollectionbyYear
12,000
10,000
Quarter
8,000
1
6,000
2
3
4,000
4
2,000
0
2017201820192020
138
TotalAssessments
TotalWriteOffs
14,000
14,000
12,000
12,000
10,000
10,000
2017
2017
8,000
8,000
2018
2018
6,000
6,000
2019
2019
2020
20204,000
4,000
2,000
2,000
0
0
2017201820192020
2017201820192020
Year
Year
139
ServAddrTotalAR
19417NORFOLKST$238.42
19417NORFOLKST$0.44
19417NORFOLKST$9.00
19417NORFOLKST$4.62
12008HIGHLANDRD$109.85
12008HIGHLANDRD$9.21
12008HIGHLANDRD$11.88
12008HIGHLANDRD$4.84
18520ROBINSONST#5$38.45
17138MONROEST$277.64
17138MONROES
T$41.30
17138MONROEST$25.00
17138MONROEST$11.88
17776TYLERDR$384.06
17776TYLERDR$16.17
1001SCHOOLSTAPT215$171.05
1001SCHOOLSTAPT215$17.82
337BALDWINAVEAPT301$63.08
337BALDWINAVEAPT301$8.45
1111SCHOOLSTAPT15$90.18
1111SCHOOLSTAPT15$13.50
345EVANSAVEAPT303$160.92
345EVANSAVEAPT303$20.80
335EVANSAVEAPT303$90.22
335EVANSAVEAPT303$13.29
1227SCHOOLSTAPT306$362.35
1227SCHOOLSTAPT306$17.76
1227SCHOOLSTAPT314$240.26
1227SCHOOLSTAPT314$17.76
300JACKSONAVEAPT220$219.09
300JACKSONAVEAPT220$18.57
TOTAL 2,707.86
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