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5.3 ERMUSR 05-11-2021______________________________________________________________________________ Page 1 of 2 UTILITIES COMMISSION MEETING TO: ERMU Commission FROM: Melissa Karpinski – Finance Manager MEETING DATE: May 11, 2021 AGENDA ITEM NUMBER: 5.3 SUBJECT: 2021 First Quarter Delinquent Items ACTION REQUESTED: Approve the 2021 first quarter delinquent items submitted. BACKGROUND: First 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. 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 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 first 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, are removed and assessed. The assessment amount for 2021 is $0.00 as there has been not activity yet for this year. • The amounts submitted only to Collection Agencies for 2021 is $0. (Please note that amounts submitted to Revenue Recapture were also submitted to Collection Agencies.) 241 ______________________________________________________________________________ Page 2 of 2 • The amounts submitted to Revenue Recapture were less than the prior year. The Q1 2021 RR amount is $2,600.71. We have collected a total of $5,875.40 from RR in Q1 2021. • Write Offs for Q1 2021 are $1,362.30 which is less 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 $873.21 from RR in Q1 2021. However, that still leaves us $5,002.19 ahead with the $5,875.40 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 $2,600.71. To break these totals down by provider, it is $2,170.94 for Electric, $287.30 for Franchise Fees, $49.73 for Trash, $45.45 for Water, $25.95 for Sewer and $21.34 for Storm Water. The amount for first quarter Write-Offs is $1,362.30 which includes: small balances of $54.47, amounts removed from RR meeting the six-year limit with the state program of $873.21 and other write-offs of $434.62. 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 (2019), the industry standard is between .12% and .54%. Interestingly, the Northern/Central Plains average is .22%. Our totals for the year are below the national average, at .015%. ATTACHMENTS: • 2021 First Quarter Delinquent Items Comparison • 2021 First Quarter Delinquent Items Submitted 242 Delinquent Items Comparisons Year Quarter Assessments Collection  Agency Revenue  Recapture Rev  Recap/Coll   Agen Write‐Offs Rev Recap  Pmts 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          2021 1 ‐                   ‐                   2,600.71         2,600.71         1,362.30         5,875.40          0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 2018 2019 2020 2021 Quarterly Write‐Offs by Year 1 2 3 4 Quarter 0 2,000 4,000 6,000 8,000 10,000 12,000 2018 2019 2020 2021 Quarterly Amts Submitted for   Collection by Year   1 2 3 4 Quarter 243 0 2,000 4,000 6,000 8,000 10,000 12,000 2018 2019 2020 2021 Total  Assessments 2018 2019 2020 2021 Year 0 2,500 5,000 7,500 10,000 12,500 15,000 17,500 20,000 2018 2019 2020 2021 Total  Write ‐Offs 2018 2019 2020 2021 Year 0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 2018 2019 2020 2021 Rev Recap to Write‐Off Comparison Total Submitted to RR Total RR Pmts Total Write‐Offs Values 244 Agency Serv Addr Provider Total AR B 17942 VANCE CIR 1ERUE 22.56$         B 17942 VANCE CIR 6CTYF 15.12$         B 379 BALDWIN AVE APT G0 1ERUE 122.95$       B 379 BALDWIN AVE APT G0 6CTYF 25.70$         B 1001 SCHOOL ST APT 303 1ERUE 369.73$       B 1001 SCHOOL ST APT 303 6CTYF 10.99$         B 757 FREEPORT AVE 1ERUE 195.96$       B 757 FREEPORT AVE 6CTYF 27.00$         B 241 MAIN ST APT 3 1ERUE 85.02$         B 241 MAIN ST APT 3 6CTYF 15.97$         B 814 PROCTOR AVE APT 3G 1ERUE 57.17$         B 814 PROCTOR AVE APT 3G 6CTYF 21.23$         B 1001 SCHOOL ST APT 314 1ERUE 87.24$         B 1001 SCHOOL ST APT 314 6CTYF 16.00$         B 1105 LIONS PARK DR APT 118 1ERUE 16.83$         B 1105 LIONS PARK DR APT 118 6CTYF 9.00$           B 220 1/2 XENIA AVE UP 1ERUE 161.52$       B 220 1/2 XENIA AVE UP 4CTYT 8.57$           B 220 1/2 XENIA AVE UP 6CTYF 12.67$         B 220 1/2 XENIA AVE UP 7CTYS 7.26$           B 725 6TH ST APT 105 1ERUE 160.01$       B 725 6TH ST APT 105 6CTYF 15.90$         B 801 IRVING AVE 2ERUW 45.45$         B 801 IRVING AVE 3CTYS 25.95$         B 801 IRVING AVE 4CTYT 41.16$         B 801 IRVING AVE 6CTYF 23.94$         B 801 IRVING AVE 7CTYS 14.08$         B 1860 MEADOWVALE RD APT 8 1ERUE 96.75$         B 1860 MEADOWVALE RD APT 8 6CTYF 17.90$         B 631 AUBURN PL APT 105 1ERUE 47.14$         B 631 AUBURN PL APT 105 6CTYF 19.24$         B 1860 MEADOWVALE RD APT 6 1ERUE 137.18$       B 1860 MEADOWVALE RD APT 6 6CTYF 15.47$         B 1105 LIONS PARK DR APT 324 1ERUE 357.37$       B 1105 LIONS PARK DR APT 324 6CTYF 20.15$         B 379 BALDWIN AVE APT 101 1ERUE 149.14$       B 379 BALDWIN AVE APT 101 6CTYF 15.18$         B 241 MAIN ST APT 3 1ERUE 104.37$       B 241 MAIN ST APT 3 6CTYF 5.84$           2,600.71$   245