HomeMy WebLinkAbout14 Power Point Workshop Delinquent Accounts - SP MS EDITS
March 3, 2021 DELINQUENT ACCOUNTS REVIEW WORKSHOP ITEM #14
•BACKGROUND / HISTORYBACKGROUND / HISTORY REVIEWDELINQUENT ACCOUNTS REVIEWDELINQUENT ACCOUNTS )ordersin time spent by primary residents at their homes (stay at home increase •homesoccupation
of what were historically second Increased •Attributed primarily to•thereafterincreased every month a dips in March April May, demand for electric and water services After •2019:; 2020
compared to 19 pandemic-COVIDthe customer demand for energy and water has increased during District’s
DELINQUENT ACCOUNTS 2020and dry fall warm and and unusually customers irrigation large influenced by notably Water gallons impacts, COVID In addition to BACKGROUND / HISTORYBACKGROUND
/ HISTORY REVIEWDELINQUENT ACCOUNTS REVIEW
•NEW INFORMATIONNEW INFORMATION REVIEWDELINQUENT ACCOUNTS REVIEWDELINQUENT ACCOUNTS hardshipqualifying financial primary residential customers of the District who have demonstrated a
ssists •customer$295 per assisted 298 residential customers for a total of $87,969, an average of as •Relief Program (PAC)19 Customer -Program to provide a COVIDexisting Payment Assistance
increase in funding of the District’s approved an Board n April 2020 the I•payment-nonoffs for -late fees and shututilities, the District has temporarily suspended most like response,
In •needto afford this basic State/USA impacted the ability for many utility customers across the 19 has -COVID•comfortsafety, and of electricity and water are a basic need, essential
to health, ervices S
•BACKGROUND / HISTORYBACKGROUND / HISTORY REVIEWDELINQUENT ACCOUNTS REVIEWDELINQUENT ACCOUNTS $354,000 as of 2/1/2021. pandemic, typical levels) to over -have increased from $47,000
on 2/1/2020 (prethe District’s past due amounts PAC, As the pandemic has lingered, and despite the •customerto continue in 2021, adding approximately $85,000 or $6.20 per Forecasted
•customerper District Equates to $4.65 •%of $63,647 or 75Decrease •$85,120 for 2019to 21,473 for 2020 compared $fees of Late
DELINQUENT BACKGROUND / HISTORYBACKGROUND / HISTORY REVIEWACCOUNTS DELINQUENT REVIEWACCOUNTS
DELINQUENT ACCOUNTS reference: $500,000 equates to 1.2% of 2020 Budget annual revenues of $41.2m.Metric •The $131,505 past due 90+days 2/1/2021 represents 0.4% of Mar. thru Dec. billings.
•)2/1asofpast due (Jan. billings not $354,496 past due 30+days 2/1/2021 represents 1.1% of Mar. thru Dec. billings. The •90+Days 0.1% 60 Days, and Days, 0.2% 30 customers
past due: 1.9% of 2/1/2020 % As of •90+Days 1.2% 1.9% 60 Days, and 30 Days, % As of 2/1/2021, % of customers past due: 4.5•804Average $ Past Due per Past Due Customer
30 / 60 /90 : $273 / $220 / $•W +13 133 W +34 to last mth 205 W +11 to last mth 495#Customers E +13 194 E +40 to last mth 313 E +59 to last mth 723#CustomersDays90Days60Days30as
of 2/1/2021 BACKGROUND / HISTORYBACKGROUND / HISTORY REVIEWDELINQUENT ACCOUNTS REVIEW
•NEW INFORMATIONNEW INFORMATION REVIEWDELINQUENT ACCOUNTS REVIEWDELINQUENT ACCOUNTS per account $463 and $313, respectivelyAveraging •41,636electric customers for $89,869 and 133 water
customers for $194 •2/1/2020)date last year (vs. $11,869 on same 131,505 $•duedays past 90+ As of February 1, 2021, current delinquent accounts •354,000$Total•$131,000 90+days •$ 57,00060
days •$166,00030 days •intervaldown by time -Past Due break
Analysis of 90+Day delinquent accounts details 2/1/2021 40% Secondary 60%Primary (all accounts) Residential Electric Account mix NEW INFORMATIONNEW INFORMATION REVIEWDELINQUENT ACCOUNTS
REVIEWDELINQUENT ACCOUNTS these accounts are listed as receiving Federal SBA PPE Loan established by the District, however, we do note several of PAC For high electricity demand and
usage patterns, not in alignment with typical residential usage., Electric. The vast majority of residential accounts with over $1000 90+day balances (currently 16) have unusually
Residential, and 23% of accounts55% of dollarsDelinquent Accounts ($), Water represent 25 Top and 16% of accounts56% of dollars Delinquent Accounts ($), Electric represent 25 Top Residential32%
of Customer and 21% of Dollars-Secondary Dollars68% of Customer and 79% of -PrimaryResidential $14,466 (11%) Commercial $117,039 (89%) Residential Mix of $131,505 Balance provides
the following key notes:
•NEW INFORMATIONNEW INFORMATION REVIEWDELINQUENT ACCOUNTS REVIEWDELINQUENT ACCOUNTS offs are a last resortShut•educationMore proactive outreach to establish manageable payment plans,
and customer energy use •notices and increased customer engagementoff included establishing monetary thresholds for past due amounts triggering utility shutHave •dueutilities taking
a more proactive approach to those accounts with larger balances past Some •practicesbest JPA’s seeking Staff has engaged with other utilities and •payment plan)measures (District
currently has fewer than 5 accounts on customers being informed about protections Many utilities have observed a decrease in contacts about payment plans and extensions attributed to
•provideddate no relief has been To •relieffor financial levels, at the Federal and State Lobbying, •amountsconsistent in the practice of accrual of past due emain •payment-nonoffs
for -have generally paused on the assessment of late fees and shuttilities U
•FISCAL IMPACTFISCAL IMPACT REVIEWDELINQUENT ACCOUNTS REVIEWDELINQUENT ACCOUNTS customers of the District.financial burden for approximately 25 customers to all 14,000 Shifts the •90+daysrisk
collection of approximately $41,000 of the currently $131,505 past due Taking no action for over $1,000 delinquent 90+Days accounts, places at •payers-Protects all rate•offs-writeDistrict’s
exposure to bad debt the larger balances decreases targeting Collection of a substantial portion of amounts 90+days past due by
•FOR CONSIDERATIONFOR CONSIDERATION REVIEWDELINQUENT ACCOUNTS REVIEWDELINQUENT ACCOUNTS maximum of $800, continue to be financially impacted by the pandemic.months bill credit, up to
a -Many PAC customers that received the 2•for 2021 making prior CRP recipients eligible for another 2 months bill credit19 Customer Relief Program Payment Assistance Credit (PAC) -Renew
the Covid•identify resources to help them become currentwith all customers struggling to pay their bills to understand their needs and The District views disconnections as a last resort
and will continue to work •assistance, or enter into a formal payment plan with the Districtoff balance, seek -This will motivate these particular customers to pay•balance past due
over 90 days; approximately 25 accounts.offs, for Electric customer with $1000 or greater -Consider reinstating shut