5.4 ERMUSR 11-09-2021UTILITIES COMMISSION MEETING
TO:FROM:
ERMU Commission Melissa Karpinski –Finance Manager
MEETING DATE: AGENDA ITEM NUMBER:
November9, 2021 5.4
SUBJECT:
2021 ThirdQuarter Delinquent Items
ACTION REQUESTED:
Approve the 2021third quarter delinquent items submitted.
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 your 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, which if not collected, are removed
and assessed. The assessment amount for 2021 is $0.00 as there has not been activity
yet for this year.
Theamounts submitted only to CollectionAgencies for2021 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 more than the prior year. The Q3
2021 RR amount is $4,085.99.We have collected a total of $2,132.85from RR in Q3
2021.
Write Offs for Q3 2021 of $2,482.70 which is slightly higher 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 $2,008.23 from RR in Q3 2021.
The attached report listing shows those dollars submitted to both the Collection Agency and RR.
The third quarter totals are $4,085.99. To break these totals down by provider, it is $3,730.56
for Electric, $323.05 for Franchise Fees, $20.28 for Sewer, $8.48 for Water and $3.62 for Storm
Water.
The amount for third quarter Write-Offs is $2,482.70 which includes: small balances of $12.50,
amounts removed from RR meeting the six-year limit with the state program of $2,008.23, and
other balances of $461.97.
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 .017%.
ATTACHMENTS:
2021 Third Quarter Delinquent Items Comparison
21 Third Quarter DelinquentItems Submitted
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