Socorro City Council writes off uncollectable debt

The City of Socorro is owed almost $200,000 in debt it hasn’t managed to collect.

Last week, Socorro City Council agreed to charge-off uncollectable utility and ambulance accounts it hasn’t been able to collect for the past four years.

A total of $51,464.69 in individual utility accounts were incurred during 2019. City Finance Director Ruby Lopez told the council efforts have been made to collect the debt through notices mailed to each individual account and turned over to a collection agency. The accounts have been uncollectable for the past four years.

Charge-off for ambulance services incurred in 2018 totaled $142,971.41. Again, Lopez told council members efforts have been made to collect the debt. Using individual notices as well as a collection agency, the city again was unsuccessful in obtaining any funds for the past four years. Uncollected ambulance funds represented 14 percent of $1,018162.82 billed in 2018.

A charge-off means the city has written off a debt because it does not believe it will receive the money that it’s owed. A delinquent borrower is still responsible for paying debt that is a charge-off.

The city uses a charge-off when the borrower has become substantially delinquent after a sufficient period. Having a charge-off can mean serious repercussions on an individual’s credit history as well as and future borrowing ability.

In other business, the city approved two new business licenses: Griego’s Propane and Service, 615 Spring Street; Owner is William Griego; and Coronado Electrical LLC of Bernalillo, New Mexico; Owner is Vicente Gutierrez.