The Town’s utility collection policy (attachment A) requires the Finance Department to prepare a listing of uncollectable utility accounts in excess of $50.00 and 360 days of age in which all collection action has failed.  This list shall be submitted to the Town Council for approval to write off the account as a bad debt.

Staff recommends the write off of the listed bad debt totaling $405.68 per the utility collections policy. 

Two final bills were found to be uncollectable prior to March 2020. Multiple attempts to collect these accounts were not successful, including phone conversations, certified notices, and bank liens resulting in “No Funds”.

The Finance Department’s collection rate for Utility Billing remains extremely strong.  Collections have been 100% for 2014, 2015, 2017, 2018 and 99.99% for 2016 and 2019.  With this action tonight only 3 accounts have been written off over the prior 6 years. 

The Covid-19 related moratorium on collections between March 2020-September 2021 increased delinquencies dramatically.  Staff have diligently resumed collections working with residents on relief funding and payment plan options.  The September 2021 delinquency of 45 accounts for over $147K has been reduced to 4 accounts for less than $700. Those 4 accounts will be cleared upon receipt of the ARPA/SLFRF funds expected in January.

“I move that the Town Council authorize the write off of uncollectable utility accounts listed above in accordance with the Towns’ collection policy.”