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Rio Rancho council approves write-off of long-uncollectible utility and ambulance bills
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Summary
The council approved Resolution R32 to write off accounts receivable (ambulance, utility, parks and recreation, alarm and library accounts) that are over four years old; staff said collections will continue if payments arrive but active collection efforts will be reprioritized.
The Rio Rancho governing body voted to approve Resolution R32 to write off long-uncollectible accounts receivable, including ambulance billing and older utility accounts, in accordance with state statute.
Director Yara said the write-off is an annual accounting measure for accounts that are more than four years old after significant collection efforts. "Part of the requirement of the state statute is that I produce a statement of what these accounts receivables relate to and how our collection efforts have gone," she said, and referred councilors to a memo in the meeting packet.
Council members expressed frustration at the need to write off old balances. "I hate this and I despise it," Councilor Tyler said, explaining the write-offs reduce available revenues for city services (Councilor Tyler). Other councilors emphasized that approving the write-off does not prevent the city from accepting payments later; Yara confirmed the city will continue to receive money if it is paid but will not prioritize collection efforts for accounts that meet the write-off criteria.
After discussion, the council approved R32 by voice vote. The resolution clears specified long-delinquent accounts from the city’s books and allows staff to redirect collection resources toward current past-due accounts, while leaving account records in place in case of later recovery.
