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HomeMy Public PortalAboutExhibit MSD 18Q Comparison of Delinquency Rates to Comparable Sewer DistrictsMetropolitan St. Louis Sewer District Comparison of Delinquency Rates to Comparable Sewer Districts FY2007 State Member Name Bad Debt Expense (2007) % of Total Revenue IL American Bottoms RWTF 40,509 3 .80% NY City of Monroe DES 1,198,000 2.30% MO Metro St . Louis Sewer Dist $ 4,193,703 2.11% KS Johnson County WWD 503,561 0 .37% AZ Pima County 381,339 0 .28% CO Metro Water Recl . Dist . 1,298 0 .00 % WA King County DNR 1,469 0 .00% Exhibit MSD 180 A NATIO NAL SURVEY OF MUNICIPAL WASTEWATER MANAGEMENT FINANCING AND TRENDS Delinquent Account Write -Off Survey respo ndents were requested to provide the to tal annual delinquent acc ount write-off (b ad debt expense), as well as the percentage of total revenue that was considered as delinquent account write- off in 2007. The total a nnua l delinquent a ccount write-off for 63 agencies pr oviding retail ser vic e was $51.8 million , which equals 0.63 percent of total rev enues for these agen cies5 . T able B .27 provides summ ary statistics for agency delinquent write-o ff fo r 2007. TABLE B.27 BAD DEBT WRITE-OFF (2007) Bad Debt Write -Off 2007 Bad Debt Expense Percent (%) of Total Revenue - Agencies responding 80 63 -Total $52,019,783 0 .63 - Maximum $25,976,583 5.92 - Average $650,247 0.65 - Median $48,995 0 .38 - Minimum $06 0 .00 Respondents were requested to indicate o ne or more acti ons that are taken against customers that do n ot pay their bills within the time frame specified by their Utility . Acti ons included: Shutting off water service ; Shutting o ff sewer service; Placing a lien on the property; No tifying a collectio n agency ; • No tifying a credit burea u, a nd; • Write-o ff to ba d debts. Table B. 28 provides the number and percent of a gencies using each of listed actions. Other a dditiona l a ctio ns noted by respo ndents included: File suit, refer to city leg al collection staff, credit a rra ngement, small cla ims co urt, T eeter Pla n, transfer to tax rolls, publish names, rev oke discharge permit for septage haulers, and debt collection. 4 Agencies providing ex clusively wholesale service were not included in the analysis because these agencies do not bill household customers directly. 5 This percent value was calculated by dividing the total bad debt write- off for all respondents in 2007 by the total reported revenues for these 63 respondents from Question B. 2 of the survey. This bad debt percentage can be different than the average of the individually reported bad debt percentages reported in Question B .7 . 6 T wenty-seven agencies providin g retail service reported an annual delinquent write-off of $0 in 200Z These agencies were counted in calculating summary statistics including the average and median: SECTION B Financials - 65 THE 2008 NACWA FINANCIALSURVEY TABLE B. 28 COLLECTION ACTIONS USED (2007 ALL RESPONDENTS) Collection Action Number of Agencies Percent of Respondents (of 101) - Cut Off Water 62 61% - Cut Off Sewer 13 13% - Place Lien 40 40% - Collection Agency 37 37% - Credit Bureau 14 14% - Write Off 51 50% - Other 17 17% Figures B.21 illustrates the distributio n of bad debt write-off as a percent of t otal re venue for all resp ondents providing reta il serv ice and all co llectio n actions. Similar to the 2005 Survey, three respondents to the 2008 Surv ey had delinqu ent account write-off abov e 2 percent of t otal rev enue. FIGURE B.21 DISTRIBUTION OF BAD DEBT AS A PERCENT OF TOTAL REVENUE (ALL RESPONDENTS) 3.00 2.75 2.50 - 2.25 2. 00 - 1.75 - 1. 50 - 1.25 - 1.00 - 0. 75 - 0.50 - 0. 25 - 0.00 0 10 20 30 40 SO 60 70 80 90 Percent of Agencies Below Value 100 2007 2004 2001 1998 Note: Maximum values of 5.9 (2007), 4.6 (2004), 8.6 (2001), and 8.2 (1998) are not shown on the chart 66 - SECTION B Finan cials Appendix B Delinquent Account Write -Off THE NACWA 2008 FINANCIAL SURVEY Bad Debt Late Paym ent Consequences ID Member Name Bad Debt Expense (2007) % of Total Reve nue Shut Off Water Shut Off Sewer Place Lren Notify Coll . Age ncy Notify Credit B ureau Write Other Off AK0001 Anchorage WW Utility 75,074 0.21% Yes Yes Yes AL0003 Mobile Area WSS 191,756 0.47% Yes Yes Yes Yes Yes AR0001 City of Litte Rock 263,600 0.74% Yes Yes AR0002 City of Pine Bluff 49,989 1. 00% Yes Yes Yes AZ0001 City of Phoenix 762,000 0.50% Yes Yes Yes AZ0002 Pima County 381,339 0. 28% Yes Yes CA0003 Union Sanitary District 0 0. 00% Yes Yes Yes small claims court CA0005 C. Contra Costa SD 0 0.00% CA0006 East Bay MUD 226,726 0.39% Yes Yes Yes CA0008 Sacramento County 0 0.00% No bad debt CA0009 City of San Diego Yes Yes Yes CA0014 Encina Wastewater Auth. 0 0. 00% CA0022 Fairfield -Suisun SD Yes Yes CA0024 Delta Diablo SD 0 0.00% Teeter Plan CA0030 City of Fresno DPU CA0036 City of Sunnyvale 29,047 0. 13% Yes Yes Yes Yes Yes C00002 M etro Water Red. Dist. 1,298 0. 00% Yes Yes C00004 City of Greeley 0 0.00% Yes Yes Yes DC0001 DC Water and Sewer Auth. 200,617 0.11% Yes Yes Yes Yes FL0002 Orange County Utilities 209,874 0.15% Yes _ Yes Yes Yes Yes Yes FL0012 Miami -Dade County WSD 3,365,000 0.79% Yes Yes Yes Yes Yes FL0013 City of St. Petersburg 232,999 0.24% Yes Yes Yes Yes Yes GA0002 Gwinnett County DPU Yes Yes Yes Yes GA0003 Columbus Water Works 197,545 0.38% Yes Yes GA0004 Macon Water Authority 400,035 0.91% Yes _ Yes Yes Yes _ Yes GA0006 City of Augusta UD 355,884 1. 00% Yes Yes Yes HI0001 City& County of Honolulu 0. 01% Yes Yes Yes ID0001 City of Boise PWD 126,701 0.50% Yes Yes Yes Publish names IL0001 MWRD of Greater Chicago IL0005 Downers Grove SD 244 0. 00% Yes Yes Yes _ IL0007 American Bottoms RWTF 40,509 3.80% Yes Yes Yes file lawsuit IL0011 Greater Peoria SD 5,000 0.50% Yes Yes Yes Yes Yes File Suit IL0012 Bloomington & Normal W RD Yes IL0013 Thorn Creek Basin SD 2,381 0.04% Yes Yes IL0016 Fox Metro WRD IL0017 Wheaton Sanitary District Yes Yes Yes IN0001 City of Indianapolis DPW 0 0. 00% Yes Yes city legal collection staff IN0002 Fort Wayne City Utilities 442,673 1.28% Yes Yes Yes Yes Yes FILE SUIT KS0001 Johnson County WWD 503,561 0.37% Yes Yes Yes Yes KS0002 City of W ichita W SD 365,941_ 1. 00% Yes Yes _ Yes Yes Yes KY0001 Louisville/Jefferson MSD 358,061 0. 76% Yes Yes KY0002 Sanitation District #1 384,000 1.22% Yes Yes MA0003 Upper Blackstorn WPAD 0 _ MA0004 South Essex SD MD0001 Anne Arundel County DPW Yes Yes MD0003 W SSC 1,725,000 0.85% Yes MI0002 Detroit WSD 4,068,472 1. 20% Yes Yes Yes MN0001 W estern Lake Superior SD 0 MN0002 MCES 0 Yes MN0003 Rochester, Minn. WRP _ M 00001 KC Water Services Dept. 1,402,679 3.00% Yes Yes Yes Yes Yes Yes M00004 Independence WPCD 90,298 0. 58% Yes Yes Yes NC0002 Charlotte Mecklenburg Uti 958,000 1.00% Yes Yes Yes NC0003 MSD of Buncombe County 45,736 0.18% Yes Yes NC0007 Orange WSA 143,268 0.56% Yes Yes Yes NE0001 City of Omaha PWD NJ0001 Ocean County UA 0 0.00% NJ0013 Stony Brook Regional SA 0 0.00% NV0002 Clark County San. Dist. 0 0.00% Tax Roll NV0004 City of Las Vegas APPENDIX B Question 8.7 224 Appendix B Delinquent Account Write -Off THE NACWA 2008 FINANCIAL SURVEY ID Bad Debt Late Payment Consequences Member Name Bad Debt Expense (2007) % of Total Revenue Shut Off Water Shut Off Sewer Place Lien Notify Coll. Agency Notify Credit Bureau Write Off Other NY0002 NYC Dept. of Env. Prot. 0 0.00% Yes Yes Yes NY0009 City of Monroe DES 1,198,000 2.30% Yes NY0011 Rockland County SD #1 0 0.00% Relevied to tax bill NY0020 Erie County DEP Yes OH0001 City of Akron PUB Yes Yes OH0002 MSD of Greater Cincinnati 0 0.00% Yes Yes Yes OH0003 NE Ohio Reg. Sewer Dist. 1,333,203 0. 82% Yes Yes Yes OH0004 City of Columbus DSD 0 Yes Yes OH0008 City of Lima Util. Dept. 0 0. 00% Yes OH0010 City of Hamilton DPU 34,664 0.31% Yes Yes Yes Payment Arrangements OH0013 City of Lebanon Yes Yes Yes OK0002 City of Tulsa PWD 756,163 0. 85% Yes Yes Yes Yes Yes OR0001 Clean Water Services OR0005 City of Gresham 91,754 0.00% Yes Yes Yes OR0009 City of Albany 32,339 0.10% Yes Yes Yes Yes PA0002 Philadelphia Water Dept. 25,976,583 5. 92% Yes Yes Yes PA0004 Delaware County RWQCA 278,510 0.80% Yes Yes Yes RI0001 Narragansett Bay Comm. 210,543 0.30% Yes Yes Yes Collection calls and letters SC0002 W estern Carolina RSA 357,474 0. 55% Yes Yes Yes SC0005 Mount Pleasant Waterworks 192,711 1.10% Yes SC0006 Beaufort Jasper WSA Yes Yes Yes TN0003 City of Memphis, DPW 415,725 0. 80% Yes Yes TN0004 MWS, Nashville & Davidson Cnty 2,560,470 1. 56% Yes Yes Yes Yes TX0001 Trinity Riv er Auth. Of TX 0 0.00% TX0002 Austin Water Utility 437,024 0.28% Yes Yes Yes TX0005 El Paso Water Utilities, PSB 249,000 0.05% Yes TX0010 City of Garland 191,682 0. 56% Yes Yes Yes TX0016 Upper Trinity Reg. Water Dist. Yes UT0001 Salt Lake City Public Util. 6,121 0. 04% Yes Yes Yes UT0003 Central Davis Sewer District 0 0. 00% Yes UT0004 Snyderville Basin WRD 0 0.00% Yes VA0001 Alexandria Sanitation Auth. 48,000 0.19% Yes Yes VA0003 Fairfax County WWMP 0 0.00% Yes Yes Yes Yes VA0006 Upper Occoquan SA 0 0.00% VA0011 Chesterfield County Util. 43,041 0.16% Yes Yes Yes Yes WA0001 King County DNR 1,469 0.00% Yes Yes WA0002 City of Tacoma PW D W A0009 LOTT Wastewater Alliance 0 0. 00% WI0001 Green Bay MSD 0 0.00% WI0002 Madison MSD 0 0.00% Revoke permits for septage haulers WI0003 Milwaukee M SD 0 0.00% Agencies Responding 80 77 62 13 40 37 14 51 17 Minimum 0 0. 00% Maximum 25,976,583 5.92% Average 650,247 0. 53% Median 48,995 0. 21% Total 52,019,783 APPENDIX B Question B .7 225