The following shall constitute the bad debt/uncollectible account receivable write-off policies and procedures for the town.
(A) In the event that accounts receivable under this section, as amended from time to time, are not paid within the time fixed by the town or a town agency or department, the same shall be deemed delinquent. A penalty of 10% of the amount of the account receivable may be attached as delinquent fees.
(B) For the purpose of this section, the following definition shall apply unless the context clearly indicates or requires a different meaning.
UNCOLLECTABLE ACCOUNT. A delinquent account receivable for which the town or town agency or department has reasonably and diligently attempted collection, but in which such collection remains unsuccessful.
(C) The town or town agency or department shall prepare a semi-annual schedule of uncollectible accounts. The semi-annual schedule shall consist of accounts the town or town agency or department has determined to be uncollectible.
(D) The town or town agency or department shall generate a statement setting forth the efforts that have been made to collect the account and a statement that such efforts have been unsuccessful.
(E) The town or town agency or department shall produce a statement, including the reasons therefore, that the town or town agency or department believes it is not economically feasible to pursue collection efforts on the specified uncollectible account.
(F) A schedule of uncollectible accounts shall be submitted to the Town Council for action by the Town Council to declare said accounts listed as collectible or uncollectible and may authorize the town or town agency or department to cease further collection procedures and expense the amounts outstanding on the accounts declared uncollectible as bad debts.
(G) The town or the town agency or department may attempt to recover the amount of the bad debt in a civil action against the debtor.
(H) Accounts in which state and/or federal law mandates an amount is to be written off shall be written off as bad debts upon the approval of the Clerk-Treasurer of the town.
(Ord. 12-2007, passed 5-14-2007)