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HomeMy WebLinkAboutReg 2006-10-16 Item 8B - Resolution - Cancellation of Past Due Acounts Receivable and Returned Check Write-Offs COUNCIL AGENDA SYNOPSIS p i s sZ ITEM NO i •ke 1 Meeting Date 1 Prepared by I Mayor's review I �C'ouncil review elk,/ 'k' j- 2 10/16/06 1 KAF}h 1 ..L.411. 1Z. 3908 ITEM INFORMATION CAS NUMBER: 06-121 I ORIGINAL AGENDA DATE: 10/16/06 AGENDA I I'EM TITLE Resolution ordering cancellation of Past Due Accounts Receivable and Returned Check Write -offs. CATEGORY Discussion Motion Resolution Ordinance Bid Award Public Hearing Other Mtg Date Mtg Date Mtg Date 10/16/06 Mtg Date Mtg Date Mtg Date Mtg Date SPONSOR Council Mayor Adm Svcs DCD Finance Fire Legal P&7R Police PI' SPONSOR'S There are certain receivables that have been deemed uncollectible and need to be removed SUMMARY from the Accounts Receivable Ledger per resolution. REVIEWED BY COW Mt CA &P Cmte F &S Cmte Transportation Cmte Utilities Cmte Arts Comm. Parks Comm. Planning Comm. DAl'E: 10/16/06 RECOMMENDATIONS: SPONSOR /ADMIN. Forward to Regular Meeting for adoption COMMITTEE Reviewed by Committee prior to 10/16/06 Regular Meeting COST IMPACT FUND SOURCE EXPENDITURE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED $N /A $N /A $N /A Fund Source: N/A Comments: MTG. DATE ;:RECORD OF COUNCIL ACTION MTG. DATE ATTACHMENTS 10/16/06 Information memo dated 1.0/11/06 Resolution in final format with Attachment A MEMORANDUM To: Mayor City Council fr From: Kevin A. Fuhrer, Finance Director Date: October 11, 2006 Subject: CANCELLATION OF ACCOUNTS RECEIVABLE The annual proposed resolution totaling $17,778.30 reflects amounts deemed uncollectible. The items listed have been through the City's collection program and have not been successfully resolved. Although we are writing them off the "official" City books, these amounts will still be subject to collection. These items include: False Alarms Account total of $835.50, NSF Checks Account total of $402.97 and all other Miscellaneous Billing Account total of $16,539.83. The funds affected will be properly adjusted. The process for tracking accounts receivable is quite thorough. The steps below are followed prior to the attached write -off resolution: Invoice is sent to recipient by the Finance Department, payable in 30 days. Second notice is then sent specifying due date before receivable is forwarded to collection agency. Collection agency sends a series of three letters for the original amount due, with the final letter advising that legal action will be taken if payment is not made. If there is no response from debtor after the letter series, the debt is then reported to the National Credit Bureaus. Collection agency then pursues legal action after the debtor is given a final opportunity to dispute the claim. This includes attaching checking accounts, garnishments, lawsuits and other legal methods. The items on the proposed resolution reflect those that have been through the process above and receivables are still due with the likelihood of collection being very low. We do collect amounts after write -offs, but very seldom. The City cannot revoke or deny a business license for non payment of an accounts receivable claim. C:\Documents and Settings\All Users\ Desktop \Kelly'MSDATA\Financademo from Kevin.doc KF:ksn 10/10!2006 Page 1 of 1 at •o� foi 1906 City of Tukwila Washington Resolution No. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, ORDERING THE CANCELLATION OF PAST DUE ACCOUNTS RECEIVABLE AND RETURNED CHECK WRITE -OFFS. WHEREAS, certain receivables and checks have been deemed uncollectible after efforts by both the City and a collection agency have been unsuccessful; and WHEREAS, the City will continue to pursue these receivables when practical; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, HEREBY RESOLVES AS FOLLOWS: Section 1. Miscellaneous Accounts Receivable. The total of $17,778.30 is deemed uncollectible. See Attachment A. PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at a Regular Meeting thereof this day of 2006. ATTEST /AUTHENTICATED: Dennis Robertson, Council President Jane E. Cantu, CMC, City Clerk APPROVED AS TO FORM BY: Filed with the City Clerk: Passed by the Council: Resolution Number: Office of the City Attorney Attachment: Attachment A, Past Due Accounts Receivable and Returned Check Write -Offs. 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