City wipes away just over $413,000 in unpaid charges

Published 7:22 pm Friday, August 5, 2016

The City of Washington has written off $413,000.23 in bad debts (more than five years old) for fiscal year 2016, according to a city document.

For fiscal year 2015, the city wrote off nearly $437,000 in bad debts. As in previous years, uncollected fees for emergency medical services is at the top of the list of bad-debt write-offs for fiscal year 2016, according to a memorandum from Matt Rauschenbach, the city’s chief financial officer and administrative services director, to the mayor and City Council members. The city is writing off $226,517.09 in unpaid EMS debt for FY 2016.

The write-offs are made according to city policy.

The latest write-offs include $144,452.96 in unpaid electric bills, (up from $85,000 in unpaid utilities bills last year), $19,387.13 in unpaid sewer bills, $12,528.19 in unpaid water bills and $6,665.87 in unpaid sanitation charges. The latest write-offs also include $1,901.44 in property damage to city electrical equipment, according to the memorandum.

“The EMS write-offs are consistent with past performance. Our collections represent 78 % and are consistent with the industry norm,” reads the memorandum. EMS write-offs will continue to be substantial in the future because of contractual allowances and expected collection rates, according to Rauschenbach.

The city’s EMS collections have increased from $350,000 to $714,000 a year since the city hired EMS Management Consultants to perform billing and collection duties in 2010, according to the memorandum.

The City Council has told city staff to take all actions possible when it comes to collecting money owed the city, including going to court.

The city uses multiple collection methods to obtain payment on the outstanding debts, but writes off those bad debts after certain criteria are met. After 10 years, unpaid assessments are written off. After five years, unpaid EMS charges, utilities charges, building-demolition charges and other fees and charges are removed from the city’s financial books.

In 2013, the city wrote off $491,000 in bad debt. In 2012, the city wrote off slightly more than $1.75 million in bad debt.

About Mike Voss

Mike Voss is the contributing editor at the Washington Daily News. He has a daughter and four grandchildren. Except for nearly six years he worked at the Free Lance-Star in Fredericksburg, Va., in the early to mid-1990s, he has been at the Daily News since April 1986.
Journalism awards:
• Pulitzer Prize for Meritorious Public Service, 1990.
• Society of Professional Journalists: Sigma Delta Chi Award, Bronze Medallion.
• Associated Press Managing Editors’ Public Service Award.
• Investigative Reporters & Editors’ Award.
• North Carolina Press Association, First Place, Public Service Award, 1989.
• North Carolina Press Association, Second Place, Investigative Reporting, 1990.
All those were for the articles he and Betty Gray wrote about the city’s contaminated water system in 1989-1990.
• North Carolina Press Association, First Place, Investigative Reporting, 1991.
• North Carolina Press Association, Third Place, General News Reporting, 2005.
• North Carolina Press Association, Second Place, Lighter Columns, 2006.
Recently learned he will receive another award.
• North Carolina Press Association, First Place, Lighter Columns, 2010.
4. Lectured at or served on seminar panels at journalism schools at UNC-Chapel Hill, University of Maryland, Columbia University, Mary Washington University and Francis Marion University.

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