Page 98 - Yucaipa Valley Water District

Workshop Memorandum 17-076

Date: May 30, 2017

From: Peggy Little, Administrative Supervisor
Erin Anton, Administrative Clerk IV

Subject: Review of Bad Debt Summary for Calendar Year 2015

The District actively pursues delinquent accounts, and in most cases is able to collect delinquent
fees through a combination of shutting off the services provided, sending accounts to a collection
agency, placing a lien on the property involved, and/or pursuing the claims through legal actions
such as small claims court. In some cases, the District is unable to collect the money owed the
District.

During the calendar year 2015, the amount of bad debt totals $27,288.24, which includes
$11,791.89 for sewer only customers and $15,496.35 for water/sewer customers. Of this bad
debt total $3,948.71 is due to home foreclosures, leaving account balances of $23,339.53 that
was not collected in the normal
collection process. Bad Debt as a Percentage of
Annual Water and Sewer Revenues
As a proper accounting procedure, 0.300% 0.270%
this bad debt must be accounted
for on our financial statements; 0.240%
otherwise the debt remains as a 0.250% 0.230% 0.230%
liability on the District’s annual
audit. 0.190%
0.200%
District staff has compiled the list of 0.160%
uncollectible accounts for calendar 0.140% 0.133% 0.143%
year 2015, which amounts to 0.150% 0.120% 0.120%
$27,288.24. Of this total, only
14.5% of the bad debts are due to
home foreclosures. 0.100% 0.073% 0.065%
0.055% 0.053% 0.047% 0.049%
Overall, the total amount of bad 0.050% 0.034%
debt represents a loss of 0.143%
for calendar year 2015 based on
total water and sewer revenues. 0.000%
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Yucaipa Valley Water District - May 30, 2017 - Page 98 of 138