Council approves write-off of $429,220.62 in uncollectible receivables

The Rio Rancho City Council approved a resolution to remove $429,220.62 of uncollectible accounts receivable from the city’s books.

Carol Jadameel of Financial Services presented the write-off request and said accounts are deemed uncollectible after four years of outstanding balance and multiple collection attempts. She cited Section three-thirty seven-seven, NMSA 19 78 (as referenced in the staff presentation) as the statutory procedure by which a municipality may write off accounts; staff provided a required statement on the nature and condition of the accounts in the council packet.

Jadameel provided a breakdown: $311,170.12 for ambulance accounts, $86,003.73 for utilities, $1,002.42 in parks and recreation fees, $15,800 in alarm fees, and $14,634.50 for library accounts (including late fees and lost/damaged materials fees). She said this is an annual bookkeeping practice to better reflect accounts receivable on financial statements; write-off does not forgive the debt and collection efforts continue, including turning accounts over to collection agencies.

Councilors commented during the discussion. Councilor Tyler asked whether accounts sent to collections are reported to credit agencies; Jadameel confirmed they are. Tyler also urged accountability for homeowners when renters do not pay utility bills. Councilor Culbreth and others thanked finance staff and noted the process supports accurate audits and maintenance of strong bond ratings. Councilor Weimer noted some ambulance debts reflect accounts whose patients are deceased, which staff said can be a factor in nonpayment.

The council approved R-23 by roll call; the councilors recorded as voting yes included Linentine, Weimer, Culbreth, List, Dabson and Tyler.