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INFORMATIONAL MEMO <br />Page 2 <br />DISCUSSION <br />The proposed amount of the 2017 Cancellation of Accounts Receivable of $9005.25 is <br />$37,675.21 lower than last year's total of $46,680.46. This is attributable to three main factors: <br />• This year we are only writing off one street department invoice in the amount of <br />$498.15. Normally there are multiple street department invoices being written off <br />with much higher dollar amounts. <br />• We are still seeing the positive impact of not issuing or renewing a business <br />license until all past -due debt has been paid to the City. <br />• We are also still seeing a positive impact of having higher false alarm fees. While <br />$25.00 and $50.00 fees were often ignored in the past, since the fees have gone <br />up to $150.00 and $200.00, recipients are paying much more attention to the <br />invoices we send them and timely payments have increased. <br />FINANCIAL IMPACT <br />The financial impact of cancelling $9005.25 will be to reduce our accounts receivable balance <br />by this amount in keeping with Generally Accepted Accounting Principles (GAAP) for writing off <br />bad debt. Please note that while we are writing off the accounts receivable for accounting <br />purposes, the accounts are still being actively worked for collection purposes with the exception <br />of those accounts where a responsible party cannot be identified. Accounts covered by <br />bankruptcy law cannot be pursued. <br />RECOMMENDATION <br />The Council is being asked to approve the annual resolution authorizing the cancellation of <br />Accounts Receivable and to forward this item to the Regular Meeting Consent Agenda of <br />October 16, 2017. <br />ATTACHMENTS <br />Draft Resolution with Attachment A. <br />2 Z:\Council Agenda Items\Finance\10_3 Finance Committee \Info Memo 2017 AR Writeoffs.doc <br />