Water authority tables financial report while staff outline legacy bad debt and collection changes
April 21, 2026 | Marion County, Alabama
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The water authority in Hamilton tabled its March 2026 financial report after staff told the board they need more time to finalize accounting entries related to long‑running customer bad debt.
Eric, a staff member who addressed the board, said the authority’s auditors previously wrote off roughly $80,000 in accumulated bad debt and that bookkeeping work remains to properly clear the carried balances. “They wrote off ... about $80,000 back then of bad debt that had accumulated,” Eric said, describing entries auditors made two years ago and the follow‑up work now required.
The board did not take a vote on the report and will resume the item next month once accountants complete the write‑off adjustments, the chair said.
Why it matters: staff said unresolved accounting entries prevent them from producing a reliable monthly statement, and the board indicated it does not want to accept figures until the ledger is corrected.
Staff also described operational steps to reduce future write‑offs and recoup longstanding balances. The authority has been exploring a state collection mechanism that can intercept tax refunds if customers provide Social Security numbers, and staff said they will update application requirements and open a new bank account to enable that process. Eric said staff also plan to tighten enforcement timing: moving from a 60‑day delinquency approach toward a 45‑day sequence of courtesy calls, a short cure window, and lock‑off if bills remain unpaid.
Eric emphasized the effort balances collection with outreach: “we try to work with people ... we were doing okay,” he told the board when describing the new 45‑day courtesy call practice.
Next steps: the March financial report remains tabled until accountants complete bad‑debt write‑offs and staff finalize revised collection procedures.
Eric, a staff member who addressed the board, said the authority’s auditors previously wrote off roughly $80,000 in accumulated bad debt and that bookkeeping work remains to properly clear the carried balances. “They wrote off ... about $80,000 back then of bad debt that had accumulated,” Eric said, describing entries auditors made two years ago and the follow‑up work now required.
The board did not take a vote on the report and will resume the item next month once accountants complete the write‑off adjustments, the chair said.
Why it matters: staff said unresolved accounting entries prevent them from producing a reliable monthly statement, and the board indicated it does not want to accept figures until the ledger is corrected.
Staff also described operational steps to reduce future write‑offs and recoup longstanding balances. The authority has been exploring a state collection mechanism that can intercept tax refunds if customers provide Social Security numbers, and staff said they will update application requirements and open a new bank account to enable that process. Eric said staff also plan to tighten enforcement timing: moving from a 60‑day delinquency approach toward a 45‑day sequence of courtesy calls, a short cure window, and lock‑off if bills remain unpaid.
Eric emphasized the effort balances collection with outreach: “we try to work with people ... we were doing okay,” he told the board when describing the new 45‑day courtesy call practice.
Next steps: the March financial report remains tabled until accountants complete bad‑debt write‑offs and staff finalize revised collection procedures.
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