TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Javier Carcamo, Finance Director
PREPARED BY: Ruben Romero, Accountant
SUBJECT:
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Rescind Resolution No. 08-1916 and Change the Uncollectible Receivable Policy to an Administrative Policy
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RECOMMENDATION
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Adopt Resolution No. 25-4834, A Resolution of the City Council of the City of Murrieta, California, Rescinding Resolution No. 08-1916 and Change the Uncollectible Account Receivable City Council Policy to an Administrative Policy.
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PRIOR ACTION/VOTE
On January 15, 2008, the City Council adopted Resolution No. 08-1916, approving the Policy for Uncollectible Accounts Receivable (Vote: 5-0).
CITY COUNCIL GOAL
Maintain a high performing organization that values fiscal sustainability, transparency, accountability and organizational efficiency.
BACKGROUND
The City of Murrieta (City) currently has outstanding delinquent accounts. As is the case with all municipalities, the collection of uncollectible accounts receivable is an ongoing occurrence. The City established its initial policy in 2008, recognizing the importance of sound fiscal management by ensuring that amounts owed to the City were collected through diligent efforts.
The current policy outlines procedures for staff and requires City Council approval for write-offs exceeding $50. After the City has completed its due diligence, the Director of Finance is authorized to write off amounts of $50 or less. As part of best management practices, periodic updates to policies and procedures are necessary to enhance efficiency and align with industry standards.
Following a review of uncollectible accounts receivable policies from other municipalities and best management practices, the Finance Department found that most policies were administrative and approved by the City Manager. As a result, staff requests City Council authorize this as an administrative policy.
Industry comparisons also indicated that mun...
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