5.2 ERMUSR 02-09-2021______________________________________________________________________________
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UTILITIES COMMISSION MEETING
TO:
ERMU Commission
FROM:
Melissa Karpinski – Finance Manager
MEETING DATE:
February 9, 2021
AGENDA ITEM NUMBER:
5.2
SUBJECT:
2020 Fourth Quarter Delinquent Items
ACTION REQUESTED:
Approve the 2020 fourth quarter delinquent items submitted.
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 are assessed to the
property taxes in the fall. Please note this number will only be presented in the 4th
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 recei ve 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:
Presented for review are comparisons with previous years, identifying the categories and
amounts for each quarter and the running totals. Regarding the year-end totals:
• The amounts listed for assessments culminate in the fourth quarter and include items
previously submitted to other collection services, and if not collected, are removed and
assessed. The assessment amount for 2020 is $11,324.36. This increased compared to
2019 but seems more in line with amounts assessed in other years.
• 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.)
• The amounts submitted to Revenue Recapture were less than the prior year. The 2020
RR amount is $16,840.36. We have collected a total of $16,965.56 from RR in 2020.
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• Write Offs for 2020 of $20,886.05 which is more than the prior year. The biggest impact
to the Write-Offs is 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 $20,717.05
from RR in 2020.
The attached report listing shows those dollars submitted to both the Collection Agency and RR.
The fourth quarter totals are $5,668.90. To break these totals down by provider, it is $4,919.95
for Electric, $493.32 for Franchise Fees, $153.67 for Sewer, $59.29 for Water, $25.00 for Storm
Water and $17.67 for Trash.
The amount for fourth quarter Write-Offs is $5,464.99 which includes: small balances of $33.75,
amounts removed from RR meeting the six-year limit with the state program of $5,431.24.
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 .05%.
ATTACHMENTS:
• 2020 Fourth Quarter Delinquent Items Comparison
• 2020 Fourth Quarter Delinquent Items Submitted
57
Delinquent Items Comparisons
Year Quarter Assessments
Collection
Agency
Revenue
Recapture
Rev
Recap/Coll
Agen Write‐Offs
Rev Recap
Pmts
2017 1 ‐ ‐ 5,739.46 5,739.46 (18.07) 12,149.77
2017 2 ‐ 730.50 8,617.58 9,348.08 358.05 6,595.05
2017 3 ‐ ‐ 8,319.80 8,319.80 (34.28) 5,308.24
2017 4 8,352.84 180.40 10,344.56 10,524.96 2,272.12 1,472.34
2018 1 ‐ ‐ 9,644.99 9,644.99 3,383.61 9,374.71
2018 2 ‐ ‐ 6,945.51 6,945.51 1,933.72 3,293.10
2018 3 ‐ ‐ 6,233.11 6,233.11 5,047.62 1,496.85
2018 4 10,301.48 ‐ 10,292.97 10,292.97 3,206.46 1,258.91
2019 1 ‐ ‐ 2,911.46 2,911.46 2,444.35 10,447.26
2019 2 ‐ 85.77 8,267.42 8,353.19 3,755.56 8,258.66
2019 3 ‐ ‐ 6,750.81 6,750.81 1,962.21 1,855.27
2019 4 4,743.53 ‐ 5,708.23 5,708.23 3,833.53 1,172.73
2020 1 ‐ ‐ 2,707.86 2,707.86 5,537.23 8,315.08
2020 2 ‐ ‐ 5,016.46 5,016.46 7,621.65 5,203.80
2020 3 ‐ ‐ 3,447.14 3,447.14 2,262.18 2,022.43
2020 4 11,324.36 ‐ 5,668.90 5,668.90 5,464.99 1,424.25
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
2017 2018 2019 2020
Quarterly Write ‐Offs by Year
1
2
3
4
Quarter
0
2,000
4,000
6,000
8,000
10,000
12,000
2017 2018 2019 2020
Quarterly Amts Submitted for
Collection by Year
1
2
3
4
Quarter
58
0
2,000
4,000
6,000
8,000
10,000
12,000
2017 2018 2019 2020
Total Assessments
2017
2018
2019
2020
Year
0
2,500
5,000
7,500
10,000
12,500
15,000
17,500
20,000
2017 2018 2019 2020
Total Write ‐Offs
2017
2018
2019
2020
Year
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
2017 2018 2019 2020
Rev Recap to Write‐Off Comparison
Total Submitted to RR Total RR Pmts Total Write‐Offs
Values
59
Agency Serv Addr Provider Total AR
B 19217 KING CT NW 1ERUE 286.49$
B 19217 KING CT NW 6CTYF 37.43$
B 19217 KING CT NW 7CTYS 2.42$
B 11825 191 1/2 AVE APT 5 1ERUE 103.55$
B 11825 191 1/2 AVE APT 5 6CTYF 9.53$
B 355 EVANS AVE APT 304 1ERUE 299.75$
B 355 EVANS AVE APT 304 6CTYF 38.34$
B 1105 LIONS PARK DR APT 219 1ERUE 199.72$
B 1105 LIONS PARK DR APT 219 6CTYF 10.25$
B 10076 180TH AVE NW 1ERUE 352.96$
B 10076 180TH AVE NW 2ERUW 29.76$
B 10076 180TH AVE NW 3CTYS 59.04$
B 10076 180TH AVE NW 4CTYT 12.53$
B 10076 180TH AVE NW 6CTYF 25.73$
B 10076 180TH AVE NW 7CTYS 10.56$
B 1179 SCHOOL ST APT 6 1ERUE 44.42$
B 1179 SCHOOL ST APT 6 6CTYF 30.04$
B 12929 ORONO RD 1ERUE 101.82$
B 12929 ORONO RD 6CTYF 47.33$
B 833 FREEPORT AVE 1ERUE 76.21$
B 833 FREEPORT AVE 6CTYF 9.72$
B 10653 172ND AVE 214 1ERUE 386.82$
B 10653 172ND AVE 214 6CTYF 10.25$
B 11777 191 1/2 AVE APT 4 1ERUE 152.66$
B 11777 191 1/2 AVE APT 4 6CTYF 9.00$
B 1001 SCHOOL ST APT 317 1ERUE 413.23$
B 1001 SCHOOL ST APT 317 6CTYF 38.88$
B 805 SCHOOL ST APT 10 1ERUE 278.09$
B 805 SCHOOL ST APT 10 6CTYF 47.45$
B 18037 MONROE CIR 1ERUE 425.74$
B 18037 MONROE CIR 2ERUW 29.53$
B 18037 MONROE CIR 3CTYS 68.88$
B 18037 MONROE CIR 4CTYT 5.14$
B 18037 MONROE CIR 6CTYF 13.67$
B 18037 MONROE CIR 7CTYS 7.04$
B 8385 PARKVIEW AVE NE 1ERUE 162.45$
B 633 MAIN ST APT 402 1ERUE 146.82$
B 633 MAIN ST APT 402 6CTYF 32.94$
B 13461 191ST AVE NW 1ERUE 58.13$
B 13461 191ST AVE NW 6CTYF 9.72$
B 13461 191ST AVE NW 7CTYS 4.84$
B 1001 SCHOOL ST APT 213 1ERUE 374.92$
B 1001 SCHOOL ST APT 213 6CTYF 35.61$
B 1227 SCHOOL ST APT 313 1ERUE 250.51$
B 1227 SCHOOL ST APT 313 6CTYF 16.20$
B 17250 TWIN LAKES RD 302 1ERUE 233.66$
B 17250 TWIN LAKES RD 302 6CTYF 23.03$
B 337 BALDWIN AVE APT 207 1ERUE 132.14$
B 337 BALDWIN AVE APT 207 6CTYF 26.43$
B 12249 191ST AVE 3CTYS 25.75$
B 12249 191ST AVE 7CTYS 0.14$
B 805 SCHOOL ST APT 7 1ERUE 170.57$
B 805 SCHOOL ST APT 7 6CTYF 12.59$
B 1227 SCHOOL ST APT 116 1ERUE 114.79$
B 379 BALDWIN AVE APT 101 1ERUE 154.50$
B 379 BALDWIN AVE APT 101 6CTYF 9.18$
5,668.90$
60