HomeMy WebLinkAboutBudget/Finance Committee Minutes 08.15.1995 MINUTES
BUDGET/FINANCE COMMITTEE
AUGUST 15, 1995 4:30 P.M.
CITY HALL
MEMBERS PRESENT:
Chairman - Donna Kilpatrick
Ron Marshall Gay Easton
Bob Graham
OTHERS PRESENT:
Cathy Gabrian
In our recent audit, there was a comment regarding bad debt
expense. Don recommended that the Budget/Finance Committee
establish a policy and that a resolution be prepared within the
next two months.
Gay Easton stated that it may be helpful to the budget process if
the bad debts are done at a specific time of the year, such as the
end of the calendar or fiscal year.
Cathy stated that the auditors recommend that we charge off bad
debts that are three years or older. We will still keep these
accounts with Credit Service for up to seven years, but this will
allow our accounts receivable to reflect a more realistic balance.
Cathy commented that the months before and after the end of the
fiscal year are extremely busy and suggested cutting it off at the
end of the calendar year. This would allow the office to work with
it during January, which is a slower month.
Motion by Gay Easton to establish a policy for writing off bad
debts, seconded by Ron Marshall. Motion carried.
Bob Graham stated he feels we need to raise the security deposit
that is charged to new customers. We currently charge $ 25.00 and
he recommends increasing it to $ 75.00. Discussion and it was
stated that the deposit is used to cover the water portion of the
utility bill when a customer moves or skips out on us. (The sewer
and garbage amounts are put on the property owners taxes if not
paid by July each year.)
In light of the upcoming water rate increase, it was the consensus
of the committee to increase the security deposit to $ 75.00.
The meeting adjourned at 4:50 p.m.
Respectfully submitted,
Cathy Gabrian
Deputy City Clerk
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AUGUST 2, 1995
CITY CLERK
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