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Home My WebLink AboutR26-165 RESOLUTION NO. R26-165 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 2026 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, the City Commission, upon the recommendation of staff, has deemed it in the 12 best interests of the City's citizens and residents to approve the authorization to reduce the 13 allowance for uncollectible accounts and accounts receivable for the fiscal year 2026 write-off 14 process. 15 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 the reduction of the allowance for uncollectible accounts and accounts receivable as 22 further detailed in attached Exhibit A. 23 SECTION 3. The City Commission of the City of Boynton Beach, Florida, hereby 24 authorizes the reduction in allowance. 25 SECTION 4. This Resolution shall take effect in accordance with the law. 26 [SIGNATURES ON THE FOLLOWING PAGE] 27 RESOLUTION NO. R26-165 28 PASSED AND ADOPTED this 1(p day of SI P 9\-42—"M\C\Q,,r 2026. 29 CITY OF BOYNTON BEACH, FLORIDA 30 YES NO 31 Mayor— Rebecca Shelton 32 33 Vice-Mayor—Thomas Turkin 34 35 Commissioner—Angela Cruz ✓ 36 37 Commissioner— Mack McCray ✓ 38 39 Commissioner—Aimee Kelley 40 41 VOTE 5 -d 42 ATTEST: 43 44 heta2242:14g rA4417. Re#142_ 45 Tammy Stanziooie, CMC v ebeVcca Shelton 46 City Clerk Mayor 47 48 �� `� APPROVED AS TO FORM: <( • 'OR4q .�F �1 49 (Corporate Seal) 9, , � . SEAL 50 ; a 51 i INCORPORATED; c _jaall ,X 52 .1 1920 Shawna G. Lamb 53 I`% FLOW City Attorney " %'l.. eke Al T2 : CITY OF BOYNTON BEACH P.O.Box 310 Department of Financial Services Boynton Beach,Fl. 33425-0310 Phone:(561) 742-6244 wuu.bovnton-beach.ore TO : City Commission FROM : Ydelsi Rodriguez, Assistant Finance Director/Treasurer DATE : Sep 16, 2026 SUBJECT : FY2026 — Accounts Receivable Write Off Request Per Florida Statutes Title VIII 95.11, the City has four (4) years to collect an outstanding debt. It has been determined that these accounts are unlikely to be collected at this point and the appropriate action is to write them off completely. Attempts by the City and its Collection Agency to collect these past due amounts have been exhausted. The $1,486,389.62 represents amounts across all City departments as detailed below: Type Amount City Clerk $ 9,906.11 Fire ALS $ 1,071,731.89 Fire Detail $ 4,650.00 Fire Inspections $ 78,630.00 PD $ 20,342.50 Solid Waste $ 2,925.00 Utilities $ 118,883.92 Miscellaneous $ 167,932.08 Lot Mowing $ 3,271.63 Liens $ 398.09 Overtime $ 218.40 Rent Beach $ 7,500.00 Total $ 1,486,389.62 This amount is consistent with previous write-offs. The City establishes an amount for the allowance for uncollectible accounts annually based on overall outstanding receivables. By doing this, the requested write-off approval will have no impact on the City's financial statements. It is prudent to review, at least annually, the collectability of accounts that have been sent to the collection agency to determine the benefit of having the collection agency continue to attempt to collect the older accounts. Finance Department i=a + BOYNTON BEACH POLICE DEPARTMENT g �`��Ci% 4. Professionalism * Respect* Integrity* Dedication*Excellence �' 0� C•••r Fj COYPAISPON y' 1... , Joe DeGiulio Matthew Zeller Jack Dale + John Bonafair �;p � c 2 li to 110‘. `� y 1/'; Chief of Police Deputy Chief Assistant Chief Assistant Chief F'rCELSt� '',% e — A CFA Accredited -a.- Law Enforcement Agency Based on Florida's Collection limitations, the following invoices have met the write-off criteria: Invoice Date Amount 70635 11/3/2021 $ 400.00 72485 1/12/2022 $ 7,055.00 67284 6/1/2021 $ 900.00 67982 7/1/2021 $ 1,650.00 68806 8/17/2021 $ 1,375.00 69434 9/13/2021 $ 1,100.00 70006 9/30/2021 $ 1,100.00 70628 11/3/2021 $ 1,375.00 71336 12/1/2021 $ 240.00 71336 12/1/2021 $ 1,150.00 72483 1/12/2022 $ 600.00 72483 1/12/2022 $ 600.00 73168 2/10/2022 $ 330.00 67276 6/1/2021 $ 475.00 71330 12/1/2021 $ 180.00 72481 1/12/2022 $ 612.50 75194 5/12/2022 $ 600.00 66629 5/3/2021 $ 600.00 TOTAL $ 20,342.50 2100 High Ridge Road Boynton Beach FL 33426 0 561.742.6100 0561.738.6158 0440 www.bbpd.org „% r- ) f CITY OF BOYNTON BEACH P.O.Box 310 UTILITIES DEPARTMENT Boynton Beach, Fl. 33425-0310 MEMORANDUM Phone_(561) 742-6244 www-bovnton-beach_our Requested Action by City Commission: Authorize the Finance Department to reduce the Allowance for Uncollectible Accounts and the Accounts Receivable Accounts by $118,883.92 for 606 customers. The amount includes small balances less than $25.00. This amount consists of unpaid Utility and Solid Waste billings, other miscellaneous charges (late fees, penalties, service adjustments), taxes and other adjustments, that have been in collections over one year prior to September 2025. The write off period is defined as October 2024 through September 2025.. 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 $118,883.92 involves 660 customer accounts closed from October 2024 through September 2025. 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 2024 and September 2025, the City billed approximately $76.9 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 2024 — September 2025: SERVICE CHG_AMT Refuse $17,393.61 Stormwater $7,290.50 Sewer $26,136.47 Water $40,928.79 Other $28,011.41 Total $118,883.92 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 - $105,259.78