City of Lloydminster Council has approved an adjust to bad debt stemming from 56 utility accounts.
The per cent of the utility revenue deemed uncollectable is 0.039 or $9,177.25.
These can include any outstanding utility, water, wastewater, garbage and stormwater. The utility accounts are deemed uncollectiable after internal and external collection attempts.
When a utility account is closed, a final bill is sent to the customer and the status of the account is set to inactive.
Utility arrears have the potential of being collected by transferring outstanding balances to the related property tax account. Not all accounts are eligible for these transfers.
Administration clarified it’s through this process of transferring balances that they’ve been able to have such a high success rate on collecting property taxes.
Coun. Jason Whiting is happy to see this level of success in collecting outstanding accounts.
“I think it’s impressive, when you look at how big our utility revenue is, this little portion is going to bad debt, it tells me that things are going well,” he said.
Mayor Gerald Aalbers wanted to give a shout out during discussions to the finance department for their efforts.
“I want to give kudos and a shoutout to the teach at finance. Certainly our track record is quite reasonable,” said Aalbers.
“The per centage is very low, I think any business that operates can relate to bad debt. If there’s credit issue there’s always opportunity for bad debt. That number has stayed extremely low we’ve seen some fluctuations.”
If any of the money is collected after this motion it will be recorded and the write-off is reversed.
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