ANAHEIM : City to Write Off $2.5 Million in Debts
The City Council has decided to write off nearly $2.5 million in bad debts that officials in several city departments have been unable to collect.
Most of the losses were incurred because residents and businesses have gone bankrupt or could not be located by the city to seek payment.
“It’s hard to collect when that happens,” said City Manager James D. Ruth, before the council unanimously agreed Tuesday to absorb the bad debts.
The bulk of the debts, about $1.7 million, was owed to the city-owned utilities departments.
“Despite the institution of more stringent credit and collection policies . . . the department has experienced a net increase of $433,107 in the bad debt write-off” in the last year, a report by Public Utilities General Manager Edward K. Aghjayan stated.
Aghjayan said his department has expanded its deposit policy on residents to better absorb future losses.
Other departments that suffered losses were Anaheim Stadium, with $15,477, the Anaheim Convention Center, with $2,455 in uncollectible tenant accounts, and the city paramedics, with $673,510 in uncollectible services.
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