(A) The town has determined criteria for identifying and writing off uncollectable debt related to town-operated utilities.
(B) The town wishes to establish an internal policy that will provide the town’s staff with specific direction related to the removing of uncollectable debt from the town’s utility receivable ledger.
(1) The utility account balance must be a minimum of three years old.
(2) The utility account must have been sent to the North Carolina Debt Set Off Program.
(3) The utility account must have been sent to a collections agency for active collection.
(4) The writing off of the receivable balance on utility accounts does not stop the town from collecting debt owed by the customer.
(C) This policy establishes limits, criteria and guidelines that will ensure the town’s utility accounts receivable balances are managed properly, and are not harmful to the town's fiscal health. This policy will enable the town to keep its credit rating at a high standard.
(Res. 15-R-322, passed 11-10-2014)