Page 14 - Yucaipa Valley Water District

Director Memorandum 19-056

Date: June 4, 2019

Allison M. Edmisten, Chief Financial Officer
Prepared By:
Erin Anton, Administrative Clerk V
Subject: Identification and Declaration of Bad Debt for Calendar Year 2017

Recommendation: That the Board authorizes the District staff to declare bad debt for
Calendar Year 2017 in the amount of $45,561.98.

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 2017, Bad Debt as a Percentage of
the amount of bad debt totals Annual Water and Sewer Revenues
$45,561.98. This total includes 0.30%
$27,660.35 for sewer only 0.270%
customers, $9,896.23 for
water/sewer customers, 0.25% 0.240% 0.230% 0.230% 0.228%
$1,304.56 due to home
foreclosures, and $9,703.84 for
miscellaneous accounts 0.190%
receivable invoices. 0.20%
0.160%
As a proper accounting 0.140% 0.133% 0.143%
procedure, this bad debt must be 0.15% 0.120% 0.120%
accounted for on our financial 0.103%
statements; otherwise the debt
remains as a liability on the 0.10% 0.073%
District’s annual audit. 0.055% 0.053% 0.065%
0.047% 0.049%
Overall, the total amount of bad 0.05% 0.034%
debt represents a loss of 0.228%
for calendar year 2017 based on
total water and sewer revenues. 0.00%
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Yucaipa Valley Water District - June 4, 2019 - Page 14 of 237