5.4 ERMUSR AGENDA 07-02-2013
UTILITIES COMMISSION MEETING
TO:
Elk River Municipal Utilities Commission
John Dietz, Chair
Allan Nadeau, Vice-Chair
Daryl Thompson, Trustee
FROM:
Theresa Slominski – Finance and Office
Manager
MEETING DATE:
June 25, 2013
AGENDA ITEM NUMBER:
5.4
SUBJECT:
Second Quarter Delinquent Items
BACKGROUND:
Second quarter delinquent items are presented for your review. The attached report has four
columns: Assessments, Collections, Revenue Recapture (RR), and Write Offs.
Assessments are delays in collecting the money owed and is assessed to the property
taxes in the fall. (This number will grow each quarter delinquents are presented and
once they are submitted to the County, they no longer appear on the report.)
Collections amounts are those we send to the collection agency to try and collect after
we have exhausted all our internal collection efforts.
Revenue Recapture 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 resorting to a
collection agency or having to write them off completely. (This number is the
remaining aggregate amount of all funds submitted through this process since
inception.)
Write Offs are amounts removed from the books with no further collection efforts
being extended.
DISCUSSION:
These amounts cover items through March 15th 2013, as those amounts would be greater than
ninety days out. If we have notice of bankruptcies or deaths through June 15th those would also
be included in these amounts.
The amounts of $2,176.06 will be assessed this fall for the assessable services of water, sewer,
and trash.
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$1,627.12 are accounts sent to a collection agency for further collection efforts, and $208.10 are
written off with no further collection efforts. (Both of these amounts will only appear on this
quarterly report.)
I have also presented the color-coded recap comparisons with last year, identifying the various
categories and the running totals. When comparing the far right columns for 2012 and 2013, we
have fewer delinquent items this year-to-date compared to last year-to-date. One item to note is
that we submitted a large amount last year to RR on some older accounts, and that was not
recurring this year. Also, this year we have collected more than we have submitted through RR -
a very good thing.
Our budgeted amount for collections and write-offs are $105,000 or .32% Uncollectible
Accounts per Revenue Dollar. If we were to project our write-offs for the year based on the first
and second quarter, we would be well below this number. According to APPA’s most recent
published standard ratios (2011), the industry standard is between .19% and .36%.
ACTION REQUESTED:
Staff recommends that the Elk River Municipal Utilities Commission accept this delinquent
amounts listing for the second quarter of 2013.
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