Tipton utility board to issue written notices for accounts over $2,000; approves routine charge-offs
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Summary
The Tipton Utility Service Board discussed a plan to place accounts with balances over $2,000 on written notice with payment agreements and approved the previously proposed charge-offs. Board members also asked staff to benchmark delinquency procedures with peer utilities and offered to form a subcommittee to assist.
The Tipton Utility Service Board on Sept. 15 approved previously proposed charge-offs and agreed to send written notices with payment-agreement offers to customer accounts carrying more than $2,000 in unpaid balances.
Board members said about a dozen to 15 accounts exceed the $2,000 threshold and that those accounts have shown little or no payment progress. Utility staff characterized prior efforts to collect large delinquencies as “hit and miss” and said the utility will attempt written payment agreements first; staff estimated some accounts will ultimately be charged off if they do not make meaningful payments.
The board’s vote approved the charge-offs that staff presented as part of routine collections work. A board member said tracking the larger delinquencies separately will help the board monitor whether payment agreements produce results. Another member offered to check other counties and utilities for more structured collection procedures staff could adapt.
Staff and board members discussed benchmarking the utility’s performance against peers to put the local delinquency rate in context. A board member offered to convene as a subcommittee to help with outreach and analysis.
The discussion also included operational coordination: staff said one listed account is already out of town and will likely be written off before the end of the year; they asked the board to approve the staff-recommended charge-offs as presented. The board voted to approve the charge-offs.
Board members did not adopt any new collection ordinance or change in statute; the action was limited to the specific charge-offs and the approved plan to issue written notices and payment agreements to accounts over $2,000.
Less-critical logistical items discussed during the same segment included staff offers of additional follow-up and an acknowledgement that the utility has made progress over the last year but that collection performance still has room to improve.