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BACKGROUND The City Council adopted the Policy for Write-off of Uncollectible Accounts Receivable on October 18, 2011. The City's policy specifies criteria for designating an account as uncollectible, states that accounts receivable should generally be written-off during the fiscal year in which an account is determined to be uncollectible, and requires City Council approval for write-off of amounts in excess of $10,000. Subsequent collection of an account previously written-off will be treated as new revenue in the appropriate fund. DISCUSSION Staff has identified one account receivable in excess of $10,000, which satisfies at least one of the criteria for designating an account uncollectible. A summary of the uncollectible account is provided below. Kimberly Long Amount Due: $15,593.99 Due Date: Nov 2011 Fund 052 The above named individual was the owner of a vehicle that was involved in a traffic collision on January 21, 2011 on Stanley Boulevard. An overhead light pole was destroyed and subsequently replaced. Total damages amounted to $15,593.99. The City sent the individual an invoice and also filed a claim with the individual's insurance company Mercury Insurance Group; however, the claim was denied and the individual did not respond to the invoice. The City subsequently referred the account to the City's collection agency, Collection Bureau of America (CBA), in July 2013. Since that time, CBA has been unsuccessful in their collection attempts. In accordance with the City's write-off policy, this account has been designated uncollectible as the appropriate collections procedures were followed, the account remains unpaid, and the statue of limitations for commencement of a recovery action for damages has passed (January 2014). In addition to the write-off of the above account receivable, the City Council authorized the Director of Finance to write-off accounts with a balance of up to $5,000 and the City Manager to write-off accounts with a balance of up to $10,000. There were twenty-one additional receivables written-off by the City Manager and the Director of Finance during the fiscal year that totaled $24,933.65. The majority of these receivables were for damage claims owed by individuals for damages to City property and miscellaneous reimbursements owed to the City. In all cases, future services will be denied to these individuals until they first pay back these charges. Submitted by: Approv d by: Tina Olson Nelson Fialho Director of Finance City Manager Page 2 of 2