Loading...
R25-247 RESOLUTION NO. R25-247 1 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOYNTON 2 BEACH, FLORIDA, FOR AUTHORIZATION TO REDUCE THE 3 ALLOWANCE FOR UNCOLLECTIBLE ACCOUNTS AND ACCOUNTS 4 RECEIVABLE FOR FISCAL YEAR 2025 WRITE-OFF PROCESS; AND FOR 5 ALL OTHER PURPOSES. 6 7 WHEREAS, in accordance with Florida Statutes, Section 95.11, the City of Boynton Beach 8 ("City") has a four-year period to collect outstanding debts; and 9 WHEREAS, City staff has identified receivables that have exceeded the four-year 10 timeframe and are now deemed uncollectible; and 11 WHEREAS, City staff recommends reducing the allowance for uncollectible accounts with 12 the amounts being $34,772.50 for the City Police Department, $333,266.49 for the City Fire 13 Department, $23,262.74 for the City Solid Waste Department, and $30,928.79 for City Utilities; and 14 WHEREAS, the City Commission, upon the recommendation of staff, has deemed it in the 15 best interests of the City's citizens and residents to approve this Resolution. 16 NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF BOYNTON 17 BEACH, FLORIDA, THAT: 18 SECTION 1. The foregoing "Whereas" clauses are hereby ratified and confirmed as 19 being true and correct and are hereby made a specific part of this Resolution upon adoption. 20 SECTION 2. The City Commission of the City of Boynton Beach, Florida, does hereby 21 authorize to reduce the allowance for uncollectible accounts and accounts receivable with the 22 amounts being $34,772.50 for the City Police Department, $333,266.49 for the City Fire 23 Department, $23,262.74 for the City Solid Waste Department, and $30,928.79 for City Utilities. 24 SECTION 3. The City Commission of the City of Boynton Beach, Florida, hereby 25 authorizes the reduction in allowance. 26 SECTION 4. This Resolution shall take effect in accordance with the law. 27 RESOLUTION NO. R25-247 28 PASSED AND ADOPTED this U day of ,1 2025. 29 CITY OF BOYNTON BEACH, FLORIDA 30 YES NO 31 Mayor— Rebecca Shelton ✓ 32 33 Vice Mayor—Woodrow L. Hay 34 35 Commissioner—Angela Cruz 36 37 Commissioner—Thomas Turkin 38 V 39 Commissioner—Aimee Kelley 40 41 VOTE 42 ATTE /ST: Di) 43 44 L44.A 45 Maylee l e us, MPA, lylivIC ebecca Shelton 46 City Cler _ Mayor 47 N TON � 48 O�G�RPORAT�!..F9��� APPROVED AS TO FORM: 49 (Corporate Seal) SEAL i+� 50 INCORPORATED; 51 �, 1920 52 • 'f.....r�P t' Shawna G. Lamb 53 City Attorney The City of Boynton Beach FL 1111 Boynton Beach Fire Rescue Department 2080 High Ridge Road Boynton Beach,Florida 33426 4411* o ,J F' Phone: (561) 742-6600 Requested Action by City Commission: Authorize the Finance Department to reduce the Allowance for Un-collectible Accounts and the Accounts Receivable balances for the Fire Department by $333,266.49. This amount represents unpaid annual Fire Inspection charges that are 4 years old or older as of August 1st, 2025. Explanation of Request: Authorize the Finance Department to reduce the Allowance for Uncollectible Accounts and write off uncollectible receivables totaling $333,266.49 for 4,681 invoices in the period beginning 12/5/2006 and ending 7/20/2018. These accounts consist of unpaid charges related to annual Fire and Life Safety fees that have remained outstanding for more than four(4)years prior to August 21st,2025. Pursuant to Section 95.11, Florida Statutes, debts over four (4) years old are no longer enforceable through the court system. The accounts identified fall into this category and are therefore legally uncollectible by litigation. The Fire Department has already implemented multiple collection measures—including repeat invoicing, follow-up calls, delinquency notices, and other standard procedures—but these accounts remain unpaid due to factors such as bankruptcies,business closures, inactive accounts, or unresponsive debtors. The write-off is strictly an accounting adjustment and does not erase or forgive the obligation from the customer or entity. The City will continue to pursue collection when feasible, including recovering amounts during future transactions with the debtor, lien enforcement, or as a condition for obtaining permits, services, or contracts with the City. Write-Off Summary FY25(2006-2018)unpaid balances Year # of Invoices Total Balance 2006 2 $ 90.00 2007 13 $ 619.50 2008 29 $ 2.036 00 2009 46 $ 2.852 00 How will this affect city programs or services? 2010 59 $ 4.237 99 This adjustment is an accounting entry only. 2011 332 $ 23.319.00 Fiscal Impact: This amount has already been 2012 653 $ 44.832.00 accounted for in the allowance for uncollectible 2013 628 $ 45.553 00 accounts on the financial statements. 2014 577 $ 39.997.00 2015 475 $ 34.782 00 2016 707 $ 54.524 00 2017 832 $ 60.012 00 2018 328 $ 20.412.00 Total 4681 $ 333.266.49 America's Gateway to the Gulfstream �,. x ; BOYNTON BEACH POLICE DEPARTMENT 4111.1!!`, Professionalism* Respect* Integrity* Dedication*Excellence s z T Joe DeGiulio Matthew Zeller Jack Dale - John Bonafair :tr ' ��i Chief of Police Deputy Chief Assistant Chief Assistant Chief �FpIjP `:1 *r, F'rCELSO'. Of' ltt ‘•< i—'' A CFA Accredited Law Enforcement Agency Based on Florida's Collection limitations, the following invoices totaling $34,772.50 have met the write off criteria: Account Write-Off by Invoices: INVOICE# 59111 62578 59108 63097 59888 63097 CHARGE ADJUST 63105 60512 63108 60512 63812 60515 63812 60515 63824 60518 64556 61569 65346 61928 66033 62578 66050 2100 High Ridge Road Boynton Beach FL 33426 O 561.742.6100 e 561.738.6158 www.bbpd.org CITY OF i!'. BOYNTON BEACH Requested Action by City Commission: Authorize the Finance Department to reduce the Allowance for Uncollectible Accounts and the Accounts Receivable balances for the Solid Waste Division by$23,262.74.This amount represents unpaid Solid Waste charges that are 4 years old or older as of August 1st, 2025. Explanation of Request: Authorize the Finance Department to write off uncollectible receivables totaling$23,262.74 for 103 invoices across 42 customer accounts, and to reduce the Allowance for Uncollectible Accounts and corresponding Accounts Receivable balances accordingly.These accounts consist of unpaid charges related to Bagsters, Compactor services, Special Trash Pickups, and Roll-off Dumpster services, as well as penalties and other receivables that have remained outstanding and in collections for more than four(4)years prior to August 1, 2025. Pursuant to Section 95.11, Florida Statutes, debts over four(4)years old are no longer enforceable through the court system.The accounts identified fall into this category and are therefore legally uncollectible by litigation. The Solid Waste Division has already implemented multiple collection measures—including invoicing, follow-up calls, notices, and other standard procedures—but these accounts remain unpaid due to factors such as bankruptcies, business closures, inactive accounts, or unresponsive debtors. The write-off is strictly an accounting adjustment and does not erase or forgive the obligation from the customer or entity.The City will continue to pursue collection when feasible, including recovering amounts during future transactions with the debtor, lien enforcement, or as a condition for obtaining permits, services, or contracts with the City. Write-Off Summary by Service FY24-25: Service #Invoices Amount Bagsters 2020 1 $ 139.00 2021 1 $ 139.00 Sub-Total 2 $ 278.00 Compactors 2020 2 $ 543.50 Sub-Total 2 $ 543.50 Roll Off Dumpsters 2018 1 $ 20.00 2019 2 $ 250.00 2020 56 $ 13,307.24 2021 36 $ 8,375.00 Sub-Total 95 $ 21,952.24 Special Trash Pickup 2014 2 $ 200.00 2020 1 $ 150.00 2021 1 $ 139.00 Sub-Total 4 $ 489.00 Total Write Offs 103 $ 23,262.74 CITY OF BOYNTON B E A C H How will this affect city programs or services?This adjustment is an accounting entry only. Fiscal Impact:This amount has already been accounted for in the allowance for uncollectible accounts on the financial statements. P.O.Box 310 CITY OF BOYNTON BEACH Boynton Beach,E. 33425-0310 UTILITIES DEPARTMNET Phone:(561) 742-6244 0t-(t wwu.bovnton-beach.or2 TON Requested Action by City Commission: Authorize the Finance Department to reduce the Allowance for Uncollectible Accounts and the Accounts Receivable Accounts by$30,928.79 for 160 customers.The amount includes small balances less than $25.00. This amount consists of unpaid Utility and Solid Waste billings, miscellaneous charges (late fees, penalties, service adjustments), taxes and other adjustments, that have been in collections over one year prior to September 2024,the occurrence of the last write-off, through October 2023 final accounts with balances. The write off period is defined as October 2023 through September 2024. Explanation of Request: The Utility Department has developed processes and procedures to minimize unpaid utility bills. Shut off for non- payment is the initial action. Payment plans are offered for customers with balances and circumstances.Tenant accounts are monitored for shut off for non-payment and vacancy and are placed in owner's name, if not already, within 75 days of tenant non-payment. Most of the write-off balance is a result of bankruptcies, commercial tenant accounts, residential tenant accounts and small balances.The $30,928.79 involves 160 customer accounts closed from October 2023 through September 2024. The write-off is a financial process and does not erase the debt from an individual or a property.The City, during account transition, collects any written-off debt that is possible, whether it is a property transaction with owner debt; or, if a "tenant" attempts to open a utility account with the city, past debt is presented for payment/collection before a new account can be established. With assistance from the City Clerk's office the lien search process that is standard for real estate transactions has been streamlined and is defensible in collection of owner debt. The City is required to establish an amount for the allowance for uncollectible accounts annually based on overall outstanding receivables both in utility and sanitation funds. By establishing that allowance annually this write-off request will have no impact on the City's financial statements. Liens are placed on properties with large owner debt. Ownership is verified and most properties are sitting vacant, these accounts are not included in the write-off. The properties are being billed for services, and the balances are collected at the time of sale. During the period of October 2023 and September 2024, the City billed approximately $74.3 million in charges for Utility and Solid Waste fees.The amount being requested to be written off comprises just over .0001 percent (.01%) of the total amount billed during that period for water, sewer, storm water and refuse. In addition, the amount is significantly less than our historical write-offs. Below is a schedule of amounts per service type to be written off, a computer-generated report will be available once the system writes off the accounts. Collections by Service October 2023—September 2024: SERVICE CHG AMT Refuse $6,963.18 Misc $3,818.38 Stormwater $1,694.38 Sewer $6,646.96 Tax $637.73 Adj.Write Off $1,880.36 Water $9,287.80 Total $30,928.79 Previous Historical Write Offs: FY 15/16 & 16/17-$481,791.17 FY 17/18 & 18/19 - $167,551.62 FY 19/20-$111,995.88 FY 20/21 -$166,622.36 FY 21/22 -$127,351.01 FY 23/24$74,330.99 (data was prematurely calculated for Agenda) How will this affect city programs or services? None Fiscal Impact: None since this amount has already been accounted for in the Allowance for Uncollectible Accounts on the financial statements. Alternatives: Continue to carry the unpaid accounts in the Accounts Receivable Accounts and the Allowance of Uncollectible Accounts