5.2 ERMUSR 08-08-2023______________________________________________________________________________
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UTILITIES COMMISSION MEETING
TO:
ERMU Commission
FROM:
Melissa Karpinski – Finance Manager
MEETING DATE:
August 8, 2023
AGENDA ITEM NUMBER:
5.2
SUBJECT:
2023 Second Quarter Delinquent Items
ACTION REQUESTED:
Approve the 2023 second 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 are assessed to the
property taxes in the fall. Please note this number will only be presented in the
fourth quarter.
• Collections amounts are those we send to an agency to try and collect after we have
exhausted all our internal 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 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 2023 is $0.00 as there has been no activity yet for
this year.
• The amounts submitted only to Collection Agencies for 2023 is $520.00. (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 less than the prior year. The Q2
2023 RR amount is $5,379.18. We have collected a total of $3,449.26 from RR in Q2
2023.
• Write Offs for Q2 2023 of $22,049.08 is significantly more than the prior year. The
biggest impact to the Write Offs is from the removal of old account balances due to a
six-year limit mandated by the state. We have had to remove, and write off, a total of
$20,438.38 in Q2 2023.
The attached report listing shows those dollars submitted to both the Collection Agency and RR.
The second quarter totals are $5,379.18. To break these totals down by provider, it is $4,927.18
for Electric, $285.81 for Franchise Fees, $25.24 for Sewer, $103.72 for Trash, $12.99 for Water
and $24.24 for Storm Water.
The amount for second quarter Write Offs is $22,049.08 which includes: amounts removed due
to the six-year limit with the state of $20,438.38, bankruptcies of $1,173.65, deceased amounts
of $334.39, and small balances of $102.66.
Our allowance for doubtful accounts (a reserve for bad debt/write offs) is $25,605 or .05%
uncollectible accounts per revenue dollar. According to the American Public Power
Association’s most recent published standard ratios (2021) the industry standard is between
.15% and 1.49%. Interestingly, the Northern/Central Plains average is .15%. Our totals for the
year are below the national average, at .11%.
ATTACHMENTS:
• 2023 Second Quarter Delinquent Items Comparison
• 2023 Second Quarter Delinquent Items Submitted
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Delinquent Items Comparisons
Year Quarter
Assessments
Collection
Agency
Revenue
Recapture
Rev
Recap/Coll Write‐Offs
Rev Recap
Pmts
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
2021 3 ‐ ‐ 4,085.99 4,085.99 2,482.70 2,132.85
2021 4 13,572.01 ‐ 6,532.49 6,532.49 1,819.22 2,784.22
2022 1 ‐ ‐ 6,446.46 6,446.46 1,405.27 6,749.22
2022 2 ‐ ‐ 7,547.92 7,547.92 2,402.70 3,648.77
2022 3 ‐ ‐ 15,900.91 15,900.91 4,364.37 2,285.05
2022 4 9,042.25 ‐ 6,796.66 6,796.66 6,008.66 167.94
2023 1 ‐ 520.00 7,160.11 7,680.11 1,961.37 7,179.17
2023 2 ‐ ‐ 5,379.18 5,379.18 22,049.08 3,449.26
0
5,000
10,000
15,000
20,000
25,000
2019 2020 2021 2022 2023
Quarterly Write‐Offs by Year
1
2
3
4
Quarter
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
2019 2020 2021 2022 2023
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
14,000
2019 2020 2021 2022 2023
Total Assessments
2019
2020
2021
2022
2023
Year
0
2,500
5,000
7,500
10,000
12,500
15,000
17,500
20,000
22,500
25,000
2019 2020 2021 2022 2023
Total Write‐Offs
2019
2020
2021
2022
2023
Year
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
2019 2020 2021 2022 2023
Rev Recap to Write ‐Off Comparison
Total Submitted to RR Total RR Pmts Total Write‐Offs
Values
80
Agency Serv Addr Provider Total AR
B75 5TH ST NW 1ERUE 79.24$
B75 5TH ST NW 2ERUW 12.99$
B75 5TH ST NW 3CTYS 25.24$
B75 5TH ST NW 6CTYF 2.86$
B75 5TH ST NW 7CTYS 4.29$
B 1115 SCHOOL ST NW APT 14 1ERUE 110.33$
B 1115 SCHOOL ST NW APT 14 6CTYF 17.82$
B 1227 SCHOOL ST NW APT 307 1ERUE 236.46$
B 1227 SCHOOL ST NW APT 307 6CTYF 27.72$
B 814 PROCTOR AVE NW APT 3G 1ERUE 97.92$
B 814 PROCTOR AVE NW APT 3G 6CTYF 26.27$
B 1105 LIONS PARK DR NW APT 319 1ERUE 174.12$
B 1105 LIONS PARK DR NW APT 319 6CTYF 23.35$
B 1105 LIONS PARK DR NW APT 321 1ERUE 300.17$
B 1105 LIONS PARK DR NW APT 321 6CTYF 24.29$
B 10970 178TH AVE NW 1ERUE 88.52$
B 10970 178TH AVE NW 6CTYF 11.12$
B 1105 LIONS PARK DR NW APT 110 1ERUE 250.00$
B 1105 LIONS PARK DR NW APT 110 6CTYF 10.97$
B 19101 ZEBULON ST NW 1ERUE 1,655.33$
B 19101 ZEBULON ST NW 4CTYT 45.94$
B 19101 ZEBULON ST NW 6CTYF 15.84$
B 19101 ZEBULON ST NW 7CTYS 7.76$
B 17250 TWIN LAKES RD NW 106 1ERUE 67.00$
B 17250 TWIN LAKES RD NW 106 6CTYF 16.01$
B 13631 186TH AVE NW 1ERUE 510.55$
B 13631 186TH AVE NW 4CTYT 57.78$
B 13631 186TH AVE NW 6CTYF 17.28$
B 13631 186TH AVE NW 7CTYS 8.47$
B 1227 SCHOOL ST NW APT 110 1ERUE 224.14$
B 1227 SCHOOL ST NW APT 110 6CTYF 13.43$
B 18681 CLEVELAND ST NW 1ERUE 51.39$
B 18681 CLEVELAND ST NW 6CTYF 7.56$
B 18681 CLEVELAND ST NW 7CTYS 3.72$
B 19522 HOLT ST NW APT 308 1ERUE 369.33$
B 19522 HOLT ST NW APT 308 6CTYF 22.85$
B 15667 88TH ST NE 319 1ERUE 57.81$
B 1105 LIONS PARK DR NW APT 316 1ERUE 287.46$
B 1105 LIONS PARK DR NW APT 316 6CTYF 24.99$
B 10653 172ND AVE NW APT 302 1ERUE 346.73$
B 10653 172ND AVE NW APT 302 6CTYF 21.78$
B 365 BALDWIN AVE NW APT 103 1ERUE 20.68$
B 365 BALDWIN AVE NW APT 103 6CTYF 1.67$
5,379.18$ Total
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