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5.2 ERMUSR 08-10-2021______________________________________________________________________________ Page 1 of 2 UTILITIES COMMISSION MEETING TO: ERMU Commission FROM: Melissa Karpinski – Finance Manager MEETING DATE: August 10, 2021 AGENDA ITEM NUMBER: 5.2 SUBJECT: 2021 Second Quarter Delinquent Items ACTION REQUESTED: Approve the 2021 second quarter delinquent items submitted. BACKGROUND: Second quarter delinquent items are presented for 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 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: Presented for review are recap comparisons with last year, identifying the categories and amounts for each quarter and the running totals. Regarding the second 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.) 77 ______________________________________________________________________________ Page 2 of 2 • The amounts submitted to Revenue Recapture were less than the prior year. The Q2 2021 RR amount is $3,802.55. We have collected a total of $1,841.70 from RR in Q2 2021. • Write Offs for Q2 2021 of $1,559.69 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 $1,230.48 from RR in Q2 2021. The attached report listing shows those dollars submitted to both the Collection Agency and RR. The second quarter totals are $3,802.55. To break these totals down by provider, it is $2,694.10 for Electric, $310.15 for Sewer, $289.14 for Franchise Fees, $220.56 for Water, $208.10 for Trash and $80.50 for Storm Water. The amount for second quarter Write-Offs is $1,559.69 which includes: amounts removed from RR meeting the six-year limit with the state program of $1,230.48, bankruptcy of $275.35 and small balances of $53.86. 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 .016%. ATTACHMENTS: • 2021 Second Quarter Delinquent Items Comparison • 2021 Second Quarter Delinquent Items Submitted 78 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          2021 2 ‐                   ‐                   3,802.55         3,802.55         1,559.69         1,841.70          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 79 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 80 Agency Serv Addr Provider Total AR B 631 AUBURN PL APT 202 1ERUE 163.65$       B 631 AUBURN PL APT 202 6CTYF 13.84$         B 12812 189TH AVE 1ERUE 286.34$       B 12812 189TH AVE 2ERUW 65.32$         B 12812 189TH AVE 3CTYS 119.88$       B 12812 189TH AVE 4CTYT 34.87$         B 12812 189TH AVE 6CTYF 21.23$         B 12812 189TH AVE 7CTYS 14.28$         B 18185 HUDSON ST 1ERUE 61.37$         B 18185 HUDSON ST 2ERUW 52.72$         B 18185 HUDSON ST 3CTYS 46.65$         B 18185 HUDSON ST 4CTYT 55.27$         B 18185 HUDSON ST 6CTYF 27.00$         B 18185 HUDSON ST 7CTYS 17.90$         B 1227 SCHOOL ST APT 117 1ERUE 14.38$         B 1227 SCHOOL ST APT 117 6CTYF 21.40$         B 10873 181ST LN 1ERUE 118.98$       B 10873 181ST LN 6CTYF 21.60$         B 9754 VIKING BLVD  UPSTAIRS 1ERUE 945.28$       B 9754 VIKING BLVD  UPSTAIRS 4CTYT 68.12$         B 9754 VIKING BLVD  UPSTAIRS 6CTYF 29.34$         B 9754 VIKING BLVD  UPSTAIRS 7CTYS 14.59$         B 633 MAIN ST APT  107 1ERUE 80.79$         B 633 MAIN ST APT  107 6CTYF 10.25$         B 22130 QUINN ST NW 1ERUE 99.04$         B 22130 QUINN ST NW 4CTYT 1.24$            B 22130 QUINN ST NW 6CTYF 9.53$            B 22130 QUINN ST NW 7CTYS 4.98$            B 17110 NIXON ST 1ERUE 63.00$         B 17110 NIXON ST 4CTYT 0.79$            B 17110 NIXON ST 6CTYF 13.31$         B 17110 NIXON ST 7CTYS 7.33$            B 631 AUBURN PL APT 207 1ERUE 255.78$       B 631 AUBURN PL APT 207 6CTYF 28.07$         B 1001 SCHOOL ST APT 203 1ERUE 365.30$       B 1001 SCHOOL ST APT 203 6CTYF 21.23$         B 300 JACKSON AVE APT 321 1ERUE 85.22$         B 300 JACKSON AVE APT 321 6CTYF 13.31$         B 18594 GARY ST APT 9 1ERUE 47.13$         B 18594 GARY ST APT 9 6CTYF 21.60$         B 19171 CONCORD ST 2ERUW 31.21$         B 19171 CONCORD ST 3CTYS 45.93$         B 19171 CONCORD ST 6CTYF 9.36$            B 19171 CONCORD ST 7CTYS 7.24$            B 631 AUBURN PL APT 106 1ERUE 57.68$         B 631 AUBURN PL APT 106 6CTYF 7.74$            B 18537 PASCAL DR 1ERUE 50.16$         B 18537 PASCAL DR 2ERUW 71.31$         B 18537 PASCAL DR 3CTYS 97.69$         B 18537 PASCAL DR 4CTYT 47.81$         B 18537 PASCAL DR 6CTYF 20.33$         B 18537 PASCAL DR 7CTYS 14.18$         3,802.55$   81