5.2 ERMUSR 08-11-2020UTILITIES COMMISSION MEETING
TO:FROM:
ERMU Commission Melissa Karpinski –Finance Manager
MEETING DATE: AGENDA ITEM NUMBER:
August 11, 2020 5.2
SUBJECT:
2020 SecondQuarter Delinquent Items
ACTION REQUESTED:
Approve the 2020second quarter delinquent items submitted.
BACKGROUND:
Second 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 areassessed to the property
th
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-yearlimit 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:
Available for review are the 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. If not collected, they are removed and
assessed. The assessment amount for 2020 is $0.00 as there has been not activity yet
for this year.
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 Q2
2020 RR amount is $5,016.46. We have collected a total of $5,203.80 from RR in Q2
2020.
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Write Offs for Q2 2020 of $7,621.65 which is higher thanthe prior year. The biggest
impact to the Write-Offs is due to the removal of items from the RR program because of
the six-year limit mandated by the state. We have had to remove, and write-off, a total
of $7,770.59from RR in Q2 2020.
The attached report listing shows those dollarssubmitted to both the Collection Agency and RR.
The second quarter totals are $5,016.46. To break these totals down by provider it is $4,163.34
for Electric; $382.92 for Franchise Fees; $168.46 for Sewer; $166.74 for Trash; $85.46 for
Water; and $49.54 for Storm Water.
The amount for second quarter Write-Offs is $7,621.65 which includes: small balances of
$18.64, amounts removed from RR meeting the six-year limit with the state program of
$7,770.59 and other write-offs of ($167.58).
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 .029%.
ATTACHMENTS:
2020 Second Quarter Delinquent Items Comparison
2020 Second Quarter Delinquent Items Submitted
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Delinquent Items Comparisons
Rev
Collection Revenue Recap/Coll Rev Recap
YearQuarterAssessmentsAgencyRecaptureAgenWrite-OffsPmts
20171 - - 5,739.46 5,739.46 (18.07) 12,149.77
20172 - 730.50 8,617.58 9,348.08 358.05 6,595.05
20173 - - 8,319.80 8,319.80 (34.28) 5,308.24
20174 8,352.84 180.40 10,344.56 10,524.96 2,272.12 1,472.34
20181 - - 9,644.99 9,644.99 3,383.61 9,374.71
20182 - - 6,945.51 6,945.51 1,933.72 3,293.10
20183 - - 6,233.11 6,233.11 5,047.62 1,496.85
20184 10,301.48 - 10,292.97 10,292.97 3,206.46 1,258.91
20191 - - 2,911.46 2,911.46 2,444.35 10,447.26
20192 - 85.77 8,267.42 8,353.19 3,755.56 8,258.66
20193 - - 6,750.81 6,750.81 1,962.21 1,855.27
20194 4,743.53 - 5,708.23 5,708.23 3,833.53 1,172.73
20201 - - 2,707.86 2,707.86 5,537.23 8,315.08
20202 - 5,016.46 5,016.46 7,621.65 5,203.80
Quarterly Write-Offs by Year
9,000
8,000
7,000
6,000
Quarter
1
5,000
2
4,000
3
3,000
4
2,000
1,000
0
2017201820192020
Quarterly Amts Submitted for
Collection by Year
12,000
10,000
Quarter
8,000
1
6,000
2
3
4,000
4
2,000
0
2017201820192020
71
Rev Recap to Write-Off Comparison
35,000
30,000
25,000
20,000
15,000
10,000
5,000
0
2017201820192020
Values
Total Submitted to RRTotal RR PmtsTotal Write-Offs
Total Write-Offs
Total Assessments
14,000
14,000
12,000
12,000
10,000
10,000
2017
2017
8,000
8,000
2018
2018
6,000
6,000
2019
2019
2020
4,0002020
4,000
2,0002,000
00
20172018201920202017201820192020
Year
Year
72
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