2.5 ERMUSR 05-13-2025______________________________________________________________________________
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UTILITIES COMMISSION MEETING
TO:
ERMU Commission
FROM:
Melissa Karpinski – Finance Manager
MEETING DATE:
May 13, 2025
AGENDA ITEM NUMBER:
2.5
SUBJECT:
2025 First Quarter Delinquent Items
ACTION REQUESTED:
Approve the 2025 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. We receive 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 2025 is $0.00 as there has been no activity yet for
this year.
• The amounts submitted only to Collection Agencies for 2025 is $0.00. (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 higher than the prior year. The Q1
2025 RR amount is $3,379.27. We have collected a total of $10,193.73 from RR in Q1
2025.
• Write Offs for Q1 2025 of $3,097.48 which is slightly more than the prior year.
$2,821.84 of the Write Offs were due to 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 $3,379.27 broken down by provider are: $3,054.88 for Electric,
$271.35 for Franchise Fees, $41.58 for Sewer, $8.18 for Water, and $3.28 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%.
ATTACHMENTS:
• 2025 First Quarter Delinquent Items Comparison
• 2025 First Quarter Delinquent Items Submitted
58
Delinquent Items Comparisons
Year Quarter Assessments
Collection
Agency
Revenue
Recapture
Rev
Recap/Coll
Agen Write-Offs
Rev Recap
Pmts
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 - - 5,095.50 5,095.50 4,102.00 3,166.13
2024 3 - - 8,444.30 8,444.30 6,495.34 1,322.98
2024 4 15,379.59 - 9,691.36 9,691.36 2,498.27 258.83
2025 1 3,379.27 3,379.27 3,097.48 10,193.73
2025 2 -
2025 3 -
2025 4 -
0
2,500
5,000
7,500
10,000
12,500
15,000
17,500
20,000
22,500
2021 2022 2023 2024 2025
Quarterly Write-Offs by Year
1
2
3
4
Quarter
0
2,500
5,000
7,500
10,000
12,500
15,000
17,500
2021 2022 2023 2024 2025
Quarterly Amts Submitted for
Collection by Year
1
2
3
4
Quarter
59
0
2,500
5,000
7,500
10,000
12,500
15,000
17,500
2021 2022 2023 2024 2025
Total Assessments
2021
2022
2023
2024
2025
Year
0
2,500
5,000
7,500
10,000
12,500
15,000
17,500
20,000
22,500
25,000
27,500
30,000
32,500
2021 2022 2023 2024 2025
Total Write-Offs
2021
2022
2023
2024
2025
Year
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
2021 2022 2023 2024 2025
Rev Recap to Write-Off Comparison
Total Submitted to RR Total RR Pmts Total Write-Offs
Values
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Sum of Total AR Agency
Provider B
1ERUE 3,054.88
2ERUW 8.18
3CTYS 41.58
6CTYF 271.35
7CTYS 3.28
Grand Total 3,379.27
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