Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Finance topic
No spam. Unsubscribe anytime.
Kent finance authorizes $200,141 write-off of uncollectible receivables tied largely to COVID-era deferred permit fees
Summary
Finance presented a request to write off $200,141.34 in uncollectible receivables, mostly unpaid permits deferred during the COVID period; the bulk of the accounts have been referred to a collections agency (agency collects fees on recovery) and council approved the write-off.
The Committee of the Whole authorized the mayor to write off $200,141.34 in uncollectible accounts, the finance director said, largely attributable to permit fees deferred during the COVID-19 period.
Finance manager Molly Bartleme explained that the city had deferred upfront permit intake fees early in the pandemic to keep projects moving; some applicants later abandoned the projects and fees went unpaid. Finance noted prior annual write-off totals were substantially lower (about $62,000'$74,000 in earlier years) and that the 2025 figure reflects residuals from the deferred-fee practice that stopped in 2022.
Collections: Bartleme said 99% of the write-off amount has been transferred to the city's collections contractor; referring accounts to collections does not forgive the debt, and the contractor charges a collection fee only when funds are recovered. The city reported an approximate collections recovery rate of 8% for referred receivables.
Council questions focused on account types (many were residential permit fees), whether fines/interest are sent with the principal (staff said the whole amount is referred), and whether the city benchmarks collection vendors (staff said surrounding jurisdictions report similar collection rates and that the vendor actively reaches out to debtors).
Council action: Council approved the authorization to write off the amount, subject to final approval of the finance director.
Follow-up: Staff said the finance and permitting departments coordinated outreach and that the permit center successfully collected millions in other unpaid fees; the write-off represents accounts where collection attempts were unsuccessful and administrative closure is needed for accounting.
