YORKTON - Yorkton Council received its annual report detailing account write-offs from 2021 at its regular meeting Monday.
The total write-offs were $25,983, reported Amber Matechuk - City Controller with the City. She noted when compared with total city revenues of more than $55 million, the write-offs account for less than 1/10th of one per cent.
By comparison write-offs in 2020 were $19,351.
As for the details of the 2021 write-offs, Matechuk explained, all write-offs were related to unpaid utility bills and were below the $7,500 limit with the City Manager having discretion to write-off.
There was one account receivable in excess of $7,500 at $7,714 requiring Council approval to write-off. The account was for a mobile home demolition and disposal.
“The mobile home suffered from structural disrepair and was issued a violation notice from our City’s Fire and Building Departments. After the repairs were not remedied by the owner, the property was then deemed unlivable. Administration sent this account to the Office of Residential Tenancies where we were granted a writ of possession for the mobile home and eventual permission to dispose of the property. The building was demolished in spring of 2021. Total demolition and landfill fees cost $5,135.30; plus, additional fees for levelling the lot, filing the appropriate applications and paperwork. These fees were charged back to the mobile home account and eventually sent to our collections agency,” detailed a report to Council.
“Given that the mobile home was deemed abandoned by the owner, and Administration has exhausted all attempts to get in contact with the owner, it is likely these funds will not be recovered. Administration seeks approval to write-off the balance on this account. If funds are ever retrieved from the collection agency, it would be added back to City revenue in the year received.”
Council was unanimous in approving the $7,714 write-off.
The annual budget does allow about $40,000 for account write-offs which historically is not used in full. The low write-off volume is indicative of active follow up of accounts by all departments. Accounts are only written off after all means of collection have been exhausted, including use of a collection agency, added Matechuk.