Report to/Rapport au :
Environment Committee
Comité de l’environnement
20 March 2012 / le 20
mars 2012
Submitted by / Soumis par : Marian Simulik,
City Treasurer/Trésorière municipale
Contact Person/Personne ressource : Ken Hughes,
Deputy City Treasurer, Revenue – Trésorier Municipal Adjoint, Recettes
Finance Department/Service des finances
613-580-2424
ext./poste 13485, Ken.Hughes@ottawa.ca
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SUBJECT: |
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OBJET : |
COMPTES GÉNÉRAUX – RADIATIONS POUR 2011 |
That the Environment Committee
receive this report on the 2011 general accounts write off of $58,531 as
required by Schedule A, section 21 of the Delegation of Authority By-law 2011-28
for information.
Que le
Comité de l’environnement reçoive à
titre informatif ce rapport concernant la radiation d’un montant de 58,531 $ des comptes généraux de 2011, tel que
l’exige l’annexe A, article 21 de Règlement 2011-28 sur la délégation de
pouvoirs.
The Finance Department is responsible for the collection of all
accounts billed through the City’s Financial System including water and sewer
services. The city invoices for water and sewer services for residential and
small commercial customers bi-monthly. For commercial and larger residential
customers invoices are sent monthly.
The Revenue Branch has implemented a rigorous process for follow-up,
prescribed collection activities including tax rolling unpaid amounts and
shutting off services, as well as partnering with three private collection
agencies to collect outstanding balances. The rate of collection of the Revenue
Branch is one the highest in the province. This report addresses the accounts
recommended for write-off in 2011 where collection was not successful due to a
variety of reasons.
In 2011, the City invoiced approximately $244,405,356 for water and sewer services. The Finance Department makes every effort to collect accounts receivable to the City of Ottawa. Efforts include letters, telephone calls, tax rolling unpaid amounts, shutting off services, referral to City Clerk and Solicitor Department to initiate a legal claim and assignment to private collection agencies. In some instances for reasons that are often beyond the City’s control, full or partial amounts due cannot be paid. Some of the reasons are death, bankruptcy, indigence, legal recommendation, expiry of the limitation period to commence a legal claim and administrative errors related to the billing. The limitation period for initiating litigation to collect amounts owed as prescribed by the Limitations Act, is two years from the date of the incident. This Act binds the City.
In accordance with section 21 of the Delegation of Authority by-law, 2011-28, the City Treasurer is authorized to write-off general accounts receivable, which the City Treasurer has determined to be uncollectible and must report annually to the appropriate Standing Committee a list of the amounts that have been written off over the previous year and the financial implications of writing off each item reported.
Document 1, on file with the Deputy City Treasurer, Revenue, outline the 147 accounts totalling $58,531 deemed uncollectible in 2011 that have been removed from the City’s financial system. This represents 0.024% of the total water and sewer services billed in 2011.
The Finance Department policy requires that all write-offs are charged back against the water and sewer business area in accordance with City policy. Given write-offs are charged back to the water and sewer reserve, the write-offs have been reported in the water and sewer 2011 year end financials.
RURAL IMPLICATIONS
There are no rural
implications of this report.
The public consultation process is not applicable.
Comments by the Ward Councillor(s)
There are no comments by Ward Councillors.
LEGAL IMPLICATIONS
There are no legal impediments
to receiving this report.
There are no risk management implications of this report.
FINANCIAL IMPLICATIONS
Write-offs are charged back to the water and sewer reserve and have been reported in the water and sewer 2011 year end financials.
Accessibility Impacts
There
are no accessibility impacts of this report.
Environmental Implications
There are
no environmental impacts of this report.
Technology Implications
There
are no technical implications to implementing the recommendation in this
report.
City Strategic Plan
There are no implications to the City’s Strategic Plan.
Specific details relating to water and sewer deemed uncollectible in 2011 are subject to the Municipal Freedom of Information and Protection of Privacy Act and, therefore, are held on file with the Deputy City Treasurer, Revenue as Document 1 to this report.
This report is for information purposes only to the Environment Committee, no further action is required.