HomeMy Public PortalAboutExhibit MSD 18J Delinquent Accts and Billing Adjustments ProceduresExhibit MSD 18J
NUMBER:
PAGE 1 OF 2
ISSUED:
GENERAL MANAGEMENT POLICY/PROCEDURE
APPROVED BY:
EXECUTIVE DIRECTOR
TOPIC: Delinquent Accounts
and Billing Adjustments
SUPERCEDES
PREVIOUS ISSUE
DATED
August 2007
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 her designee.
b. Delinquent accounts receivable adjustments in excess of $5000 must be approved
by at least three (3) members of the Adjustment Review Committee (ARC) as
defined by the Wastewater User Charge Ordinance 13021 Section 19 and
Stormwater User Charge Ordinance 13125 Section 24. 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.
2. 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. Payments of Delinquent Accounts Receivable will be applied to the accounts in the
following order
a. interest,
b. fees, and
c. principal.
4. Maximum staff effort will be used to collect all delinquent accounts
5. Delinquent commercial and residential accounts receivable that are 105 and 135 days past
due, respectively, with an amount due of at least $25 will be referred to a collection
agency to accelerate collection activity.
6. Whenever practical, delinquent accounts receivable greater than $500 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.
7. In accordance with Ordinances 13021 Section Six and 13125 Section Twelve, maximum
effort will be made to collect delinquent accounts from the owners of rental property.
8. Collection efforts shall be maximized in the order of:
a. 1)commercial, 2) multi -family, and 3) single family dwellings
b. Liens shall be placed on properties that are 90 days delinquent and greater than
$500 delinquent, or sooner in certain circumstances, to safeguard the interest of
the District with the following prioritization.
i. Accounts referred for legal action.
ii. Properties listed on Top 50 Delinquent Customers Summary
1. Account balance must be at least 90 days delinquent and
greater than $500
2. Additional due diligence will be exercised including, but
not limited to 1) reviewing sewer connection map from
Engineering Department, 2) reviewing water connection
map from appropriate water provider, 3) site visit by
member of A/R Division management.
iii. Accounts (Inactive) approaching 5 yr Statue of Limitations
iv. Recommendation due to possible Bankruptcy or Foreclosure.
v. All owners deceased.
vi. Largest balance first.
c. Liens may be placed on single dwellings at the discretion the Director of Finance
or her designee.