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Newton council approves write-off of uncollectible accounts after split roll-call
Summary
Council approved writing off selected uncollectible utility and miscellaneous accounts (criteria: statute of limitations, bankruptcy, deceased debtors, small amounts), approving the accounting write-offs while noting legal obligations remain; the roll-call showed four in favor and two opposed.
The Newton City Council approved a resolution June 16 to write off selected uncollectible utility and miscellaneous billing accounts from the city’s financial records while noting the underlying legal obligation to repay remains.
City Manager Todd Clark told the council staff had identified accounts meeting one or more criteria for write-off: debts exceeding applicable statutory limitations, accounts discharged in bankruptcy, deceased debtors with no estate and amounts under $50 that are not economical to pursue. Clark said once removed from the accounts receivable ledger the debt is not recognized as collectible for financial reporting purposes, but the legal obligation to pay the debt remains.
During discussion Council Member Ed Sain noted, "there is $4,000 owed by Honey’s with no recourse." Mayor Pro Tem John Stiver said, "these debts hurt the people and businesses that do pay," and the council debated whether to revisit deposit requirements and collection policies.
The minutes record that the write-offs were approved with Mayor Pro Tem John Stiver, Council Members Jody Dixon, Jerry Hodge and Anne Wepner recorded in favor and Council Members Ed Sain and Beverly Danner recorded in opposition; the motion outcome is recorded as approved. The minutes also include a line that the action was “RESOLVED” following the roll-call language. Council directed that staff may reexamine deposit policy language in response to collection concerns.
