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,ALTERNATIVE AND ANALYSIS <br />To safeguard against the loss of revenue from delinquent account <br />receivables and to limit your bad debt expense, staff recommends we <br />adopt the policy that if a entity or individual wants to open a <br />charge account with Sandridge Golf Course they must post a deposit <br />equal to the estimated amount they plan to spend over a sixty (60) <br />day period. The county will bill all account receivables (charge <br />accounts) on a monthly basis. If payment is not received within <br />thirty (30) days from the date of the bill or if the entity or <br />individual with the charge account has charges equal to the deposit, <br />they will not be permitted to charge on their account. All charge <br />accounts not paid twenty (20) days after the bill date will be <br />charged interest of 12% per annum or the prevailing current interest <br />rate for charge accounts. <br />It is anticipated that the accounts receivable system (charge <br />accounts) will be on the county computer (IBM 38). <br />1 <br />Staff recommends the Board of County Commissioners authorize the <br />Sandridge Golf Course to have charge accounts with the above <br />mentioned policies.. <br />Commissioner Wheeler asked if this would be similar to the <br />charge accounts we have at the Landfill, and OMB Director Baird <br />confirmed that it would with the exception of the policy that all <br />charge accounts not paid within 20 -days after the billing date <br />would be charged interest of 12% per annum or the prevailing <br />current interest rate for charge accounts. However-, Data <br />Processing advised that if we were to add the 20 -day policy, it <br />would takea lot longer to program the computer. Director Baird <br />recommended the Board postpone the 20 -day policy until such time <br />that Data Processing is able to do the reprogramming. <br />Commissioner Bowman questioned the 12% interest rate since <br />the prevailing interest rate is 18%. <br />Commissioner Bird wished to see these charge accounts <br />monitored closely so that interest rarely will apply. He <br />understood that these charge accounts would be set up only for <br />businesses, hotels, etc. who send large volumes of customers to <br />Sandridge, and not for individuals. He did not see the need for <br />extending charge accounts to individuals, unless there is some <br />legal reason we have to if we extend accounts to commercial <br />entities. <br />N <br />13 BOOK 73 <br />JUN 2 11988 <br />