HomeMy Public PortalAboutExhibit MSD 55 - Billing Adjustments and Delinquent Accounts ProceduresExhibit MSD 55
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) Interest, 2) fees, and 3) Service Charges.
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 $25 will be referred to
a collection agency to accelerate collection activity.
b. Whenever practical, delinquent. accounts receivable greater than $3 50 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