City wipes out $500K in bad debt
City Hall, like any other corporation, has to deal with bad debt.
The City is in the process of wiping out slightly more than $500,000 in delinquent property taxes and uncollectible general receivables from its books.
Some of the bad debt dates back more than two decades.
Revenue Manager, George King, is asking council to write off $111,000 in delinquent property taxes and $389,000 in uncollectible receivables.
Speaking on delinquent taxes, King says all avenues to collect the taxes have been exhausted therefore the outstanding accounts are deemed non-collectible and should be written off.
Of the property taxes owing:
- $6,648 are from nine mobile homes that have been removed from the city or demolished
- $94,889 from 10 properties on IR #7 that were occupied by a person of native status and/or the company leasing the property went bankrupt and had no assets to collect on
- $8,417 through amalgamation of tax rolls in 2008
- $1,604 for a property on Belgo Road
As for general receivables, King says in his report the periodic purging of delinquent, uncollectible general receivables is a fiscally responsible method to ensure an accurate position of the City's expected revenue.
Of the $389,000 asked to be written off, nearly half ($188,689) comes from real estate, $67,583 from the airport and $56,809 through the City's Glenmore Landfill.
More than $100,000 will be written off from 2009 alone - the year of the worldwide economic collapse.
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