5.4 ERMUSR 11-10-2020UTILITIES COMMISSION MEETING
TO:FROM:
ERMU Commission Melissa Karpinski –Finance Manager
MEETING DATE: AGENDA ITEM NUMBER:
November10, 2020 5.4
SUBJECT:
2020 ThirdQuarter Delinquent Items
ACTION REQUESTED:
Approve the 2020Third quarter delinquent itemssubmitted.
BACKGROUND:
Third 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
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 this time, 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 third quarter totals:
The amounts listed for assessments culminate in the fourth quarter and include items
previously submitted to other collection services, and if not collected, areremoved and
assessed. The assessment amount for 2020 is $0.00 as there has been not 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 than the prior year. The Q3
2020 RR amount is $3,447.14. We have collected a total of $2,022.43 from RR in Q3
2020.
Write Offs for Q3 2020 are $2,262.18 which is higher than theprior 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
$2,242.98 from RR in Q3 2020.
The attached report listing shows those dollars submitted to both the Collection Agency and RR.
The third quarter totals are $3,447.14. To break these totals down by provider, it is $3,033.67
for Electric, $363.36 for Franchise Fees, $24.60 for Sewer, $19.57 for Water and $5.94 for Storm
Water.
The amount for third quarter Write-Offs is $2,262.18 which includes: small balances of $19.20,
amounts removed from RR meeting the six-year limit with the state program of $2,242.98.
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 .052%.
ATTACHMENTS:
2020 Third Quarter Delinquent Items Comparison
2020 Third 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
6,233.116,233.115,047.621,496.85
20183
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
202025,016.465,016.467,621.655,203.80
2,022.43
202033,447.143,447.142,262.18
QuarterlyWriteOffsbyYear
9,000
8,000
7,000
6,000
Quarter
1
5,000
2
4,000
3
3,000
4
2,000
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
75
RevRecaptoWriteOffComparison
35,000
30,000
25,000
20,000
15,000
10,000
5,000
0
2017201820192020
Values
TotalSubmittedtoRRTotalRRPmtsTotalWriteOffs
TotalWriteOffs
TotalAssessments
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
2020
4,000
4,000
2,0002,000
00
20172018201920202017201820192020
Year
Year
76
AgencyServAddrProviderTotalAR
B578TIPTONAVENW1ERUE$328.15
B578TIPTONAVENW2ERUW$19.57
B578TIPTONAVENW3CTYS$24.60
B578TIPTONAVENW6CTYF$7.36
B578TIPTONAVENW7CTYS$3.52
B931LOOKOUTPL6CTYF$15.83
B3403RDSTAPT1021ERUE$57.36
B3403RDSTAPT1026CTYF$26.46
B544AUBURNPLAPTA1ERUE$133.08
B544AUBURNPLAPTA6CTYF$38.88
B21094FRESNOST1ERUE199.15$
B21094FRESNOST6CTYF$16.39
B379BALDWINAVEAPT1011ERUE$315.43
B379BALDWINAVEAPT1016CTYF$28.49
B17156MONROEST1ERUE$4.45
B17156MONROEST6CTYF$4.13
B17156MONROEST7CTYS$2.42
B10638175THAVE6CTYF$22.14
B19184HOOVERST1ERUE$96.74
B19184HOOVERST6CTYF$16.20
B9246PAGEAVENE1ERUE$57.90
B631AUBURNPLAPT2061ERUE$39.17
B631AUBURNPLAPT2066CTYF$13.14
B10826181STLN1ERUE$49.72
B10826181STLN6CTYF$10.80
B1860MEADOWVALERDAPT21ERUE$59.57
B1860MEADOWVALERDAPT26CTYF$7.51
B1227SCHOOLSTAPT3081ERUE$25.07
B1227SCHOOLSTAPT3086CTYF$16.74
B18413XERXESSTNW6CTYF$21.06
B300EVANSAVEAPT2061ERUE$600.36
B300EVANSAVEAPT2066CTYF$27.54
B18520ROBINSONST#61ERUE$54.42
B325EVANSAVEAPT2071ERUE$245.87
B325EVANSAVEAPT2076CTYF$33.83
B300JACKSONAVEAPT3041ERUE$187.41
B300JACKSONAVEAPT3046CTYF$27.89
B13060195THAVE1ERUE$418.87
B13060195THAVE6CTYF$15.83
B10954178THAVE1ERUE$160.95
B10954178THAVE6CTYF$13.14
$3,447.14
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