Title
Approval of Incorporated County of Los Alamos Resolution No. 16-13. A Resolution Removing Uncollectible Utility Accounts from Accounts receivable List of Los Alamos County - Fiscal Year 2011
Recommended Action
I move that Council approve Incorporated County of Los Alamos Resolution No. 16 -13; A Resolution Removing Uncollectible Utility Accounts from Accounts Receivable List of Los Alamos County for Fiscal Year 2011.
Utilities Manager's Recommendation
The Utilities Manager recommends that Council approve the resolution as requested.
Board, Commission or Committee Recommendation
The Board of Public Utilities recommends that Council approve the resolution as requested.
Body
Pursuant to 3-37-7 NMSA 1978, it is requested that Council approve the write off and removal of these uncollectible accounts. These accounts have been uncollectible for five (5) years, and all avenues for collection by the county have been exhausted. The Board of Public Utilities is scheduled to approve this item on July 20th.
The New Mexico Attorney General’s Opinion 70-88 indicated that writing off such uncollectible accounts has no effect on the County’s future right to collection if circumstances change, and if collection is not barred by the applicable statute of limitations.
The amount of write-off for each utility was determined from the actual amounts billed. This schedule also shows the ratio of total uncollectible accounts per revenue dollar. APPA reports that comparably sized utilities (5,000 - 10,000 customers) have median ratio values of .0031 for uncollectible accounts. The County has a ratio of .0005 for FY2011, excluding sales to DOE. This shows that in FY2011 the County’s ratio of uncollectible utility accounts is lower than other utilities based on median values.
Write-offs for fiscal year 2011 include one bankrupted account, totaling $852.14. Also, 37 accounts totaling $13,782.89 were sent to CreditWatch and/or J.C.C. Christensen & Associates, the collection agencies contracted by Los Alamos County to assist in collecting on outstanding final accounts in which previous collection efforts have failed.
Alternatives
The alternative is to maintain these amounts as receivables, an asset, on the County's books, with an offsetting liability, allowance for uncollectible accounts.
Fiscal and Staff Impact/Planned Item
Utility FY2011
Electric $4,708.86
Gas $3,428.33
Water $2,139.84
Sewer $3,197.01
Subtotal $13,474.04 (amount requiring Utility Board Approval)
Refuse $2,552.47
TOTAL $16,026.51
Attachments
A - Resolution No 16-13