TO: Mayor and Commission AGENDA DATE: 2/2/2026
FROM: City Manager AGENDA ITEM: 7 - B
SUBJECT:
Title
Request for approval of Resolution No. 2026-09 - Fiscal Year 2025 Utility Billing and Miscellaneous Accounts Receivable Account Adjustment.
Body
LOCATION:
Citywide
COST:
001 - $87,863.50
401 - $242,337.86
SOURCE OF FUNDS:
Not Applicable
ORIGINATING DEPARTMENT:
Finance
POTENTIAL MOTION:
Recommendation
"I move to approve Resolution No. 2026-09, Utility Billing and Miscellaneous Accounts Receivable Account Adjustment"
END
BACKGROUND:
Background
Throughout each fiscal year, the City accumulates various types of uncollectible revenue as a result of accounts being terminated, individuals filing for bankruptcy, businesses becoming inactive, or balances being outstanding over 180 days. These amounts are subject to write-off at the end of each fiscal year.
This process is an accounting procedure following the Generally Accepted Accounting Principles (GAAP), which lays the framework of accounting practices in the U.S. In applying GAAP accounting principles, the act of writing off outstanding account balances is a necessary accounting function that leads to an accounting adjustment on the City's Financial Statements to accurately show the outstanding balance and the expectation of timely collection is unlikely. If a customer's account has been written off as uncollectible on the City Financial Statements, this does not erase or forgive the debt. The City can and does collect some portion of the amount owed by those customers through several methods. If it is an owner-occupied location, liens can be filed with the Clerk of Court and will be per the Write-Off of Uncollectible Accounts Policy of 2025. These liens are typically satisfied when the property is conveyed. For tenant accounts, when the customer requests new utility services, we attempt to collect any outstanding balance prior to establishing a new service.
The City provides u...
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