COM 0623.000 1996-1998 - Laserfiche WebLink

Home

STATUS OF PRIOR YEARS' OBSERVATIONS AND RECOMMENDATIONS A. WASTEWATER DIVISION BILLING AND COLLECTIONS Observation: The billing and collection functions of the Wastewater Division could be improved by assigning sewer billing and collection responsibilities to the Department of Water Supply. Background: Billing deficiencies: Sixty-nine percent of the Wastewater Division revenues come from commercial accounts that are billed bimonthly. These billings, which average $265,000 for a bimonthly period, are sent out 45-60 days after the end of the service period. Bills have little chance of payment until they are sent out, and the delay increases the cash requirements for the operation of the Division. The delay between the end of the service period and the billing is caused by manpower limitations in processing cash receipts between billing dates. Collection deficiencies: Past due accounts over 120 days from billing have increased from $99,000 as of June 30, 1992 to $168,000 as of June 30, 1993, $256,000 as of June 30, 1994, $390,000 as of June 1995, $352,000 as of June 30, 1996, and $414,870 at June 30, 1997. The reasons for the increase in past due accounts include (a) a lack of accountability with regazd to the collections function, and (b) a lack of significant penalties to customers for non- payment. The current processing of delinquent accounts consists of (a) non-payment notification after 45 days from the billing date, (b) bills being sent to collectors, usually after 105 days, and (c) finally, if the delinquent balances are greater than $200, forwarding of bills to Corporation Counsel. Sewer bills are based on the volume of water usage over a minimum service Fee. If the Department of Water Supply was responsible for sewer billing and collection, the threat of water shut-off would be a powerful incentive for prompt sewer bill payments. This practice is followed by the County of Maui and the City and County of Honolulu. Recommendation: The County Council should consider an ordinance requiring the Department of Water Supply to function as the billing and collecting agent for the County's sewer charges. Current Status: The Administration has continued its efforts to negotiate with the Department of Water Supply to handle such billing and collection functions. Current Recommendation: Continue negotiations with the Department of Water Supply to handle such billing and collection functions. -14-