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Utilities collections lag; city-contracted firm to add text messaging this year
Summary
The collection firm reported $462,517 in delinquent utility accounts with a 5.94% payment rate on active accounts but an 84.28% overall liquidation rate after resolutions; staff said texting for utility accounts will begin this year.
Shira Thompson presented the city’s utilities-collections figures to council on Feb. 24 and described both the challenge and recent progress.
"The total turnover was, in dollar amounts, $462,517 for a total of 1,407 accounts," Thompson said. She reported $27,451 paid (155 accounts) for a 5.94% payment rate on those active accounts, while resolved accounts totaled $362,343 (1,102 accounts) and the combined liquidated amount was $387,794 across 1,257 accounts for an 84.28% overall liquidation figure.
Thompson said the firm has not yet begun texting for utilities but plans to implement text-message outreach this year, mirroring the approach used for court fines. She cautioned that some of the unresolved balances include accounts sent in error, deceased account holders, bankruptcies or incarcerations, which factor into the resolved totals.
Council asked how long the firm will pursue older accounts; staff said the firm continues collections as long as accounts remain with the contractor or until the city recalls them, and that real-property accounts can be collectible for years because of liens and a 20-year statute for real property collections.
