City writes off more than $10,000 in uncollectibles

City staff were looking for council approval to write off the two accounts at Tuesday’s council meeting

The city is out more than $2,000 in repair costs it incurred because of a car accident at Willow Point Park last year.

A vehicle crashed into the ballpark on April 10, 2011, causing extensive damage.

The city footed the $2,598.78 bill but its follow-up claim to ICBC to recover the costs was denied.

“Parks staff were called out to attend the scene and make necessary repairs to the backstop and dugout,” said Laura Ciarniello, the city’s general manager of corporate services, in a report to council.

“ICBC was billed for related costs but subsequently informed the city that as the cause of the accident was not the result of a negligent act, the city has no legal right of recovery against the motorist.”

The city said there is no other way to reclaim the funds and since ICBC has denied the claim, the city is left with no choice but to write off the funds as an uncollectible account, which will clear the city’s books of amounts that cannot be collected. The city is also writing off $8,201.66 that it’s owed from Ted Leroy Trucking, which declared bankruptcy in 2008.

“Information from Canada Revenue Agency states that there are outstanding payments to both CRA (Canada Revenue Agency) and employees, thus there is no likelihood that payment on this debt will be forthcoming,” Ciarniello said.

City staff were looking for council approval to write off the two accounts at Tuesday’s council meeting, after the Mirror went to press, in order to prepare for the city’s one-year audit. Staff were also looking for council to support an amendment to the city’s Finance Policy which would give the city’s finance manager authorization to write off accounts found to be not collectible up to $5,000. The policy would also allow the general manager of corporate services to write off uncollectible accounts that are between $5,000.01 and $10,000, while anything more than $10,000 would still have to go before council.