Title
Incorporated County of Los Alamos Resolution No. 18-10: A Resolution Removing Uncollectible Utility Accounts from the Incorporated County of Los Alamos' Accounts Receivable List for Fiscal Year 1999 Through Fiscal Year 2013
Recommended Action
I move that Council approve Incorporated County of Los Alamos Resolution No. 18-10: A Resolution Removing Uncollectible Utility Accounts from the Incorporated County of Los Alamos' Accounts Receivable List for Fiscal Year 1999 Through Fiscal Year 2013.
Utilities Manager Recommendation
The Utilities Manager recommends that Council approve the resolution as presented.
Board, Commission or Committee Recommendation
The Board of Public Utilities recommends that Council approve the resolution as presented.
Body
Pursuant to NMSA 1978, Section 3-37-7, the Board of Public Utilities (BPU) approved the write off of these uncollectible accounts. These accounts have been uncollectible for four (4) or more years, and all avenues for collection by the county have been exhausted. Once the BPU has formally approved the write-offs for utility charges, a resolution is prepared for County Council approval.
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 accounts listed are accounts that have been inactive for more than four years and have been inadvertently skipped during the yearly write-off process. This effort prior to end of the current fiscal year is to prevent converting them into the new ERP system. The write off of an account is intended to more accurately reflect the value of the receivables, but in no way affects the collectability of an account should circumstances change to facilitate collection.
The amount of write-off for each utility was determined from the actual amounts billed.
Write-offs for fiscal years 1999 through 2013 contain 42 accounts. Accounts for fiscal year 1999 total $275.58; fiscal year 2000 total $379.45; fiscal year 2002 total $368.52; fiscal year 2004 total $5,610.55; fiscal year 2005 total $3,339.53; fiscal year 2009 total $3,062.50; fiscal year 2010 total $1,416.90; fiscal year 2011 total $14,904.79; fiscal year 2012 total $4,766.98; and fiscal year 2013 total $9,564.42, all the years together totaling $43,689.22. These accounts were sent to J.C.C. Christensen & Associates, the collection agency 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
The amount of write off is delineated below by fund:
Utility FY1999
Electric $ 275.58
Total $ 275.58 (amount requiring Utility Board Approval for FY99)
Utility FY2000
Electric $ 379.45
Total $ 379.45 (amount requiring Utility Board Approval for FY00)
Utility FY2002
Electric $ 336.68
Gas $ 16.65
Water $ 15.19
Total $ 368.52 (amount requiring Utility Board Approval for FY02)
Utility FY2004
Electric $ 3,750.55
Gas $ 818.83
Water $ 748.91
Sewer $ 188.38
Subtotal $ 5,506.67 (amount requiring Utility Board Approval for FY04)
Refuse $ 103.88
TOTAL $ 5,610.55
Utility FY2005
Electric $ 2,134.69
Gas $ 600.73
Water $ 163.19
Sewer $ 153.83
Subtotal $ 3,052.44 (amount requiring Utility Board Approval for FY05)
Refuse $ 287.09
TOTAL $ 3,339.53
Utility FY2009
Electric $ 459.66
Gas $ 207.95
Water $ 127.71
Sewer $ 271.79
Subtotal $ 1,067.11 (amount requiring Utility Board Approval for FY09)
Refuse $ 1,995.39
TOTAL $ 3,062.50
Utility FY2010
Electric $ 318.74
Gas $ 524.90
Water $ 84.67
Sewer $ 109.62
Subtotal $ 1,037.93 (amount requiring Utility Board Approval for FY10)
Refuse $ 378.97
TOTAL $ 1,416.90
Utility FY2011
Refuse $14,904.79
TOTAL $14,904.79
Utility FY2012
Refuse $ 4,766.98
TOTAL $ 4,766.98
Utility FY2013
Electric $ 3,050.06
Gas $ 90.53
Water $ 4,208.08
Sewer $ 105.47
Subtotal $ 7,531.28 (amount requiring Utility Board Approval for FY13)
OMB $ 657.03
Refuse $ 1,376.11
Subtotal $ 2,033.14
TOTAL $ 9,564.42
Attachments
A - Resolution No 18-10
B - Notice of Publication