5.2 ERMUSR 05-14-2024Elk River
Municipal Utilities UTILITIES COMMISSION MEETING
TO:
FROM:
ERMU Commission
Melissa Karpinski — Finance Manager
MEETING DATE:
AGENDA ITEM NUMBER:
May 14, 2024
5.2
SUBJECT:
2024 First Quarter Delinquent Items
ACTION REQUESTED:
Approve the 2024 first quarter delinquent items submitted.
BACKGROUND:
First 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
property taxes in the fall. Please note this number will only be presented in the fourth
quarter.
• Collections amounts are those we send to the collection agency to try and collect
after we have exhausted all our internal collection efforts. ERMU receives 70% of the
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 first 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 2024 is $0.00 as there has been no activity yet for
this year.
• The amount submitted only to Collection Agencies for 2024 is $0.00 (Please note that
amounts submitted to Revenue Recapture were also submitted to Collection Agencies).
Page 1 of 2
174
The amounts submitted to Revenue Recapture were less than the prior year. The Q1
2024 RR amount is $2,879.26. We have collected a total of $8,955.64 from RR in Q1
2024.
Write Offs for Q1 2024 were $2,962.89, which is more than the prior year. All Write Offs
were from the removal of old account balances due to a six -year limit mandated by the
state.
The attached report listing shows those dollars submitted to both the Collection Agency and RR.
The first quarter totals are $2,879.26, broken down by provider they are: $2,170.43 for Electric,
$341.35 for Sewer, $221.70 for Franchise Fees, $79.86 for Water, $43.14 for Trash, and $22.78
for Storm Water.
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 .03%.
• 2024 First Quarter Delinquent Items Comparison
• 2024 First Quarter Delinquent Items Submitted
Page 2 of 2
175
Delinquent Items Comparisons
Year
Quarter
Assessments
Collection
Agency
Revenue
Recapture
Rev
Recap/Coll
Write -Offs
Rev Recap
Pmts
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
2023
3
-
-
5,514.33
5,514.33
1,643.54
2,723.58
2023
4
10,994.99
465.14
12,853.33
13,318.47
5,222.43
1,564.65
2024
1
-
-
2,879.26
2,879.26
2,962.89
8,955.64
2024
2
-
2024
3
20241
4
Quarterly Write -Offs by Year
22,500
20,000
17,500
15,000
12,500
10,000
7,500
5,000
2,5000
1 1111 tll 1
2020 2021 2022 2
Quarterly Amts Submitted for
Collection by Year
17,500
15,000
Quarter 12,500
Quarter E 1
■2 10,000 01
■3
7,500 m 2
■3
■ 4 5,000
� I ■ 4
2,500 I I III I
0
)23 2024 2020 2021 2022 2023 2024
176
Total Write -Offs
32,500
30,000
27,500
25,000
22,500
20,000
17,500
15,000
12,500
10,000
7,500
5,000
2,500
0
2020 2021 2022 2023 2024
Year
40,000
35,000
30,000
25,000
20,000
15,000
10,000
5,000
0
Total Assessments
15,000
12,500
■ 2020 10,000
■ 2021
7,500
■ 2022
■ 2023 5,000
■ 2024
2,500
0 ,-
2020 2021 2022 2023 2024
Year
Rev Recap to Write -Off Comparison
2020 2021 2022 2023 2024
Values
� Total Submitted to RR � Total RR Pmts —Total Write -Offs
■ 2020
■ 2021
■ 2022
■ 2023
■ 2024
177
Sum of Total AR Agency
Provider
B
Grand Total
1ERUE
2,170.43
2,170.43
2ERUW
79.86
79.86
3CTYS
341.35
341.35
4CTYT
43.14
43.14
6CTYF
221.70
221.70
7CTYS
22.78
22.78
Grand Total
2,879.26
2,879.26
178