Title
Report regarding a resolution authorizing the write-off of $40,502 in uncollectable accounts receivable for parks and recreation program services. (Sharon Ranals, Parks and Recreation Director)
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RECOMMENDATION
Recommendation
It is recommended that the City Council adopt a resolution authorizing the write-off of $40,502 in uncollectable accounts receivable for parks and recreation program services over a 10 year period between 2008 and 2017.
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BACKGROUND/DISCUSSION
Since November 1, 2017, Parks and Recreation Department staff have been working on implementing a new recreation management system (RMS) called CivicRec by CivicPlus, Inc. For nearly 20 years, the Parks and Recreation Department has used an RMS called CLASS by Active Network to track registration and process payments for recreation classes, childcare programs, and facility usage and rentals. The department processes approximately $4 million per year in revenue, most of which is processed through CLASS.
CivicRec is on track to go live to the public for summer recreation class registration beginning on May 7, 2018. As part of the process of transitioning from one RMS to another, staff intends to start off with a clean slate, only importing recent, active account holder information, and minimizing the amount of credits and balances due that will be brought into CivicRec from CLASS.
The purpose of this staff report is to recommend that City Council write off the balances of 147 uncollectable accounts, totaling $40,502, for parks and recreation program services offered from 2008 to 2017. These accounts result from non-payment by the customer. Based on the information provided, the department averaged about 15 overdue accounts at about $4,000 per year. In the past year, the department processed transactions from over 5,000 household accounts with a total revenue amount at nearly $4 million. The uncollectable accounts comprise less than 1% of the total revenue collected per year.
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