HomeMy Public PortalAboutExhibit MSD 16 - Biillng Adjustments & Delinquent Accounts ProceduresExhibit MSD 16
NUMBER: G-6
PAGE 1 OF 2
ISSUED: SEPTEMBER 10,2015
GENERAL MANAGEMENT POLICY/PROCEDURE
APPROVED BY!
ILL
EXECUTIVE DIRECTOR
TOPIC:
BILLING ADJUSTMENTS AND
DELINQUENT ACCOUNTS
Supersedes Policy Issued
08/2014
PURPOSE
This Policy establishes how delinquent accounts and billing adjustments will be managed by the
Metropolitan St. Louis Sewer District.
This policy supersedes and replaces any prior policy regarding delinquent accounts and billing
adjustments. Other District policies, procedures and guidelines shall continue to apply to the
extent not inconsistent with this Policy.
POLICY
1. Adjustments:
a. Delinquent accounts receivable adjustments of $5,000 or less as well as other
billing adjustments must be approved by the Director of Finance or their designee.
b. Delinquent accounts receivable adjustments in excess of $5,000 must be approved
by at least three (3) members of the Adjustment Review Committee (ARC) as
defined by the current Wastewater User Charge Ordinance and Stormwater User
Charge Ordinance. Requests for delinquent adjustments in excess of $5,000 must
be accompanied by supporting documents. ARC shall have the sole authority to
settle Delinquent Accounts Receivable in excess of $5,000 at its discretion. ARC -
approved adjustments/settlements are presented to the Board of Trustee's Finance
Committee for acceptance into record.
c. All adjustments due to erroneous or misdirected billings are the responsibility of
the Accounts Receivable Division. The Accounts Receivable Division should be
notified of all erroneous or misdirected billings which should be investigated to
the satisfactions of the Accounts Receivable Division Manager and the
appropriate adjustment made.
NUMBER: G-6
PACE 2 OF 2
ISSUED: SEPTEMBER 10,2015
2. Methods of Payments:
a. The District offers the following methods of payment: 1) in person at the District
Headquarters or an authorized pay station 2) lockbox, 3) on-line, 4) direct debit,
and 5) check or credit card by phone.
3. Payment application priority:
a. Outstanding Accounts Receivables will be applied to accounts in the following
order: 1) Service Charges, 2) fees, and 3) Interest.
4. Collection of Delinquent Accounts:
a. Delinquent commercial and residential accounts receivable that are 60 and 90
days past due, respectively, with an amount due of at least the current average
Residential bill (based on 7 cef's) will be referred to a collection agency to
accelerate collection activity.
b. Whenever practical, delinquent accounts receivable greater than $350 individually
or in aggregate with one property owner, will be referred to an attorney for
lawsuit after all prudent collection efforts have been made by MSD and its
contracted collection agencies without success.
c. Collection efforts shall be maximized in the order of: 1)commercial, 2) multi-
family, and 3) single family dwellings
d. Liens shall be placed on properties that are 90 days delinquent and greater than
$350 delinquent, or sooner in certain circumstances at the discretion of the
Director of Finance or their designee, to safeguard the interest of the District with
the following prioritization:
i. Accounts referred for legal action.
ii. Properties on the Top 50 Delinquent Customers Summary.
iii. Accounts (Inactive) approaching 5 year Statute of Limitations.
iv. Recommendation due to possible Bankruptcy or Foreclosure.
v. Largest balance first.
e. Accounts deemed uncollectible may be placed in Archive status if one
or more of the following conditions are met:
1. Law firms unable to locate customer to serve lawsuit.
2. Customers on disability or social security.
3. Customers with no assets to garnish.
4. Accounts greater than 10 years delinquent.
5. Expired judgments