WM Utility sees major dip in write-offs

WM Utility sees major dip in write-offs

Bad debts down nearly half- a- million dollars in latest slate of delinquent accounts

news@theeveningtimes.com

Write-offs have been a thorn in the side of the West Memphis Utility Department for years, but officials in the department have taken steps to reduce the amount and number of write-offs, resulting in a half-million-dollar improvement over last year.

According to reports issued at the Utility Commission’s August meeting, the 2015 bad-debt write-off total for at the Utility was the lowest since they started keeping records in 2009 — $359,546 in pastdue accounts deemed uncollectable. Commissioners voted during the meeting to take the figures off the books.

The improved tally was a strong rebound from 2014, the worst year ever for charge-offs. The city amassed $807,471 that year, a figure that was written off last year. The 2015 total marked a $447,925 improvement and beat the previous low-water mark of $373,733 for 2009. The charge-off total had risen each year until the most recent report. Utilities General Manager Todd Pedersen attributed the turnaround to a steady effort over the last few years and daily focus aimed at addressing accounts past due by 60 and 90 days.

Those numbers were also reported at a low ebb.

“Today the ‘over 90 days’ is $6,200 on active accounts,”

said Office Manager

Rob Hollon. “The ‘over 60’ is only $14,000.”

The commission heard that the 60 day number was relatively high compared to the 90 day delinquency.

“We don’t shut off people’s utilities in heat advisory weather,” said Pedersen. “So, we haven’t done disconnects lately.”

Pedersen gave commissioners a sneak peak of 2016 write-offs and hoped a few more passed due accounts would be paid up before action was needed next year. He forecasted another record low and thought the news would be even better. He expressed of goal of having bad debt drop into the $200,000 range by next year.

“I’ve got the 2016 number already,” said Pedersen.

“Right now it is $303,000.

People may still come in (to pay delinquent bills).

I’m hoping we see a ‘2’.”

Pedersen credited daily focus by office staff for the dramatic reduction and indicated deposit amounts and policies or pre-pay options may be proposed for city council consideration.

None of those actions are pending now however.

Most of the bad debt piles up at the end before somebody moves, according to Holland.

“Only one out of four people pay their final bill — 75 percent walk away from their final obligation to us,” said Holland. “The hundred- dollar deposit only covers it seven percent of the time. Sixty percent of our write-offs are not people we disconnect but our people who disconnect themselves and leave us with their final bill.”

By John Rech