Chapter 4.40
UNCOLLECTABLE ACCOUNTS AND BAD DEBT WRITE-OFFS

Sections:

4.40.010    Definitions.

4.40.020    Policies.

4.40.030    Records and reporting.

4.40.010 Definitions.

A.    “Bad debt” refers to any debt which has become overdue by more than one hundred twenty days.

B.    “Debt” means any sum of money which a citizen of the city and borough, or customer of the city and borough in some capacity, is legally obligated to pay to the city and borough for any purpose.

C.    “Overdue” refers to any debt owed to the city and borough of Sitka which has not been paid within thirty days of the date the payment was due. As an exception, debts owed for utility services consumed are considered overdue fifteen days after the date the payment was due.

(Ord. 95-1283 § 4 (part), 1995.)

4.40.020 Policies.

A.    Bad debts are to be accounted for by the city and borough of Sitka finance department until collected or permanently written off.

B.    The finance department will take ongoing aggressive action to collect all debts owed to the municipality which are not otherwise written off under the provisions of this chapter. These actions may include, but are not limited to, turning over of delinquent accounts to a collection agency for collection; filing of negative credit reports with credit bureaus; and, filing cases with the state of Alaska Small Claims Court.

C.    Bad debts over one hundred twenty days old which are under a cumulative amount of one hundred dollars per customer may be written off immediately upon approval of the finance director, if they are deemed not to be cost efficient to attempt to collect on.

D.    Any bad debts over seven years old which have been determined to be wholly uncollectable may be permanently written off upon approval of the administrator.

(Ord. 95-1283 § 4 (part), 1995.)

4.40.030 Records and reporting.

A.    The city and borough of Sitka finance department shall keep records of all bad debts which have been permanently written off for a period of three years after the year of the write-off.

B.    The administrator will submit a report to the assembly, on an annual basis within the first month of the new fiscal year, of all bad debts written off under the provisions of this chapter for the prior fiscal year.

(Ord. 95-1283 § 4 (part), 1995.)