(A) Definition. For purposes of this section, debt is deemed UNCOLLECTIBLE if it meets any of the following criteria:
(1) The debtor cannot be located and the debtor does not have any readily ascertainable assets that can be located;
(2) The debtor has no assets and there is no reasonable expectation they will have any in the future;
(3) The debt is disputed and the office of the Town Clerk-Treasurer has insufficient documentation to pursue collection efforts;
(4) The debt is discharged in bankruptcy;
(5) The debtor has died and there is no estate or guarantor;
(5) It is determined that it is not cost effective to continue collection efforts.
(B) Mandatory reporting. All debt deemed uncollectible shall be reported to the Town Council on a quarterly basis. Upon determination that the town has employed and exhausted all reasonable means to obtain payment, a resolution declaring the debts uncollectible shall be presented to the Town Council for their consideration.
(C) Guidelines and threshold considerations.
(1) For accounts less than $40, the account will be written off upon proper approval by the Town Council.
(2) For accounts $40 or more, the account will be reviewed by the office of the Town Clerk-Treasurer that proper collection procedures were followed and documented. Upon proper approval by the Town Council these accounts may then be written off as bad debt.
(3) Any accounts that have been written off, due to being deemed uncollectible, shall be flagged by the office of the Town Clerk-Treasurer and any future transactions by the same account holder will be denied until the uncollectible balance is paid in full. Provided, however, that this mandate shall not apply to any debt that is fully discharged in bankruptcy or if the account was disputed and the office of the Clerk-Treasurer has insufficient documentation to pursue collection efforts.
(Ord. 11 of 2018, passed 11-12-2018)