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Home My WebLink About08/16/2016 06D 2nd Quarter 2016 Accounts Receivable Status Report 10 I 11 01 , 4 1 11,4 p i ellowo BUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDASTATEMENT Item No. 6.D. For Meeting of: August 16, 2016 ITEM TITLE: 2nd Quarter 2016 Accounts Receivable Status Report SUBMITTED BY: Cindy Epperson, Director of Finance & Budget SUMMARY EXPLANATION: This report lists all accounts receivable balances handled through Central Billing, including Recurring Receivable and Installment Accounts. The report has the following components: • Staff Report • Exhibit I -- Accounts Receivable Summary (Includes total amounts billed and collected during the quarter.) • Exhibit I I -- Gambling Delinquency Detail • Exhibit III -- Local Improvement District (LID) Receivables The outstanding balance of recurring receivables billed through Central Billing as of June 30, 2016 is $1,900,156 which includes $1,864,957 for General Receivables and $35,199 for Gambling Taxes. The outstanding balance for Installment Accounts that have been billed as of June 30, 2016 is $65,924 for LID Assessments. ITEM BUDGETED: STRATEGIC PRIORITY: Public Trust and Accountability APPROVED FOR SUBMITTAL: City Manager STAFF RECOMMENDATION: Accept Report BOARD /COMMITTEE RECOMMENDATION: ATTACHMENTS: Description Upload Date Type D 2nd Qtr 2016 Accts IRecelivablle Report 8/8/2016 Omer Memo City of Yakima FINANCE DEPARTMENT STAFF REPORT August 11, 2016 SUBJECT: Accounts Receivable Status Report 2nd Quarter 2016 SUBMITTED BY: Finance Department CONTACT PERSON: Cindy Epperson, Director of Finance and Budget The Accounts Receivable Status Report reports the status of Central Billing Accounts Receivables and Installment Accounts as of June 30, 2016. CENTRAL BILLING ACCOUNTS RECEIVABLE Exhibit I is a summary by category (type) of the accounts billed through Central Receivables as of June 30, 2016. For each category the report displays the frequency of billing, the number of customers, the balance at the beginning of the reporting period, the quarterly billings and payments, the ending balance, and the aged receivable balance. Each category billed has different collection requirements. For example, unpaid Sewer contracts become a lien against the real property. For categories such as traffic, miscellaneous, and parks the City uses a collection agency. This report provides information on accounts that have a large balance due; are past due by at least 120 days; have been placed with the collection agency; are being pursued through legal proceedings; or have been determined to be uncollectable. The City's collection agency classifies an account as uncollectable when the account is beyond the statute of limitations for collection; the agency cannot locate the party; or the customer has been declared bankrupt. At year end, uncollectable accounts are recommended to the City Council for write -off. Once an item has been billed it takes Council action to remove it from the City's records. (Exception: write -offs of Municipal Court delinquencies are authorized by the Municipal Court Judges.) The write -offs approved by Council in December 2015 have been removed from the balances in these reports. Page 1 of 5 RECURRING RECEIVABLES Downtown Yakima Business Improvement District - Annually /Quarterly (DYBID) — This assessment began in December 2008 and was renewed in 2012. It replaced the Parking & Business Improvement Area (PBIA). There are two types of billings, quarterly to all property/ business owners and annual billings to all individual businesses located in this area. Annual Charges — The $12,921 in the collection column is for 73 accounts. Quarterly Charges — The $9,332 in the collection column is for 23 accounts. Fire Alarm Monitor (FAM) — There is one account in collection totaling $30. Front Street Business Improvement Assessment (FSBI) — A total of five accounts are in collection, totaling $1,100. Fruitvale Canal Billing — There is a separate irrigation fee for customers connected directly to the Fruitvale Canal. 50 accounts are billed annually. The $225 in the collection column is for six accounts. Miscellaneous Billing — Recurring billings in this category include transit bus passes, refuse charges and retiree premiums for health benefits, along with other truly miscellaneous one -time charges. The $10,228 in the collection column is for 30 accounts primarily for refuse bin charges. Intergovernmental — This category includes billings to other governmental agencies, including state agencies, counties, cities, school districts, and local police and fire departments. The current balance is $871,268 and consists primarily of the Union Gap fire billing ($606,496 — two quarterly payments — one of which has since been paid, and the other was a new billing). It should be noted that entities participating in YAKCORPS are given the option to pay the entire annual invoice when received, or split it in half. Traffic Engineering / Engineering Billing — This account is generally for sidewalk safety repairs, and currently has nothing in collection. Parks and Recreation Billing — This account includes billings for pool and field rentals, along with other program charges. The $6,252 in the collection column is for three accounts. Airport The past due accounts are being reviewed for appropriate action. The $358 in the collection column is for a vendor at the Airport. The Legal department is following up on one account in the amount of $2,615 which is a delinquent lease. The Water /Wastewater Invoices and Connections — The $6,938 in collection is for 10 Water /Sewer invoices /contracts and fire hydrant meter charges, damages to Water /Sewer equipment, and utility back billings. Page 2 of 5 Gambling Tax This quarter the City received $249,231 in gambling tax revenue. This total is 54.1% of the 2016 budget of $917,000. Gambling Tax Delinquencies — Exhibit II details the status of delinquent gambling tax accounts. One delinquent account, totaling $23,802, has been sent to collection. Another account with taxes owing of $11,397 is currently being followed up by the Legal department for action. We have informed the Gambling Commission of the status of these accounts and keep them informed of any changes in their status. When a judgment is granted the Gambling Commission can revoke the company's license. INSTALLMENT ACCOUNTS Local Improvement District (LID) — Exhibit III summarizes the status of outstanding LID receivables. The delinquent amounts are unpaid installments for prior years plus interest. As of the end of the quarter, the delinquent principal balance is $65,924. When interest of $25,197 is added, the total amount past due is $91,121. Page 3 of 5 EXHIBIT I ACCOUNTS RECEIVABLE (as of June 30, 2016) CENTRAL BILLING ACCOUNTS RECEIVABLE Approximate Quarterly Activity Status Billings Beginning New Inv Payments/ Ending Current to Over Over Recurring Receivables M Q A Balance Billed Write -offs Balance 90 Days 90 Days 120 Days Collection Legal Downtown Yak Bus Impr Dist Annual (DYBIDA) - - 280 $ 23,151 $ - $ 2,120 $ 21,031 $ - $ - $ 8,110 $ 12,921 $ - Quarterly (DYBID) - 265 - 24,053 59,803 58,509 25,347 4,756 - 11,259 9,332 - Fire Alarm Monitor (FAM) - - - 30 - - 30 - - - 30 - Front Street Business Impr (FSBI) - 25 - 3,753 1,534 1,001 4,286 1,034 - 2,153 1,100 - Fruitvale Canal Billing (FC) - - 50 275 3,085 2,960 400 125 - 50 225 - Miscellaneous 110 - - 435,280 65,154 4,536 495,898 81,102 (700) 405,208 10,288 - Intergovernmental 525 20 30 517,897 1,263,003 909,631 871,268 680,279 - 190,990 - - Traffic Eng./ Engineering 3 - - 1,370 150 50 1,470 150 - 1,320 - - Parks & Recreation (WEED) 10 - - 20,296 12,230 2,549 29,977 11,681 - 12,044 6,252 - Airport 400 - - 43,539 169,870 159,257 54,152 44,958 531 5,690 358 2,615 Water/WW Invoice & Connections City of Yakima 90 - 5 208,004 425,967 378,915 255,057 236,684 848 10,586 6,938 - Terrace Heights/Union Gap 4 4 1 24,262 358,545 276,767 106,041 106,041 - - - - Sub - total Receivables 1,142 314 366 1,301,910 2,359,342 1,796,295 1,864,957 1,166,810 680 647,409 47,443 2,615 Gambling Tax - 20 - 24,038 249,231 238,070 35,199 - - - 23,802 11,397 Total 1,142 334 366 $1,325,948 $2,608,573 $2,034,365 $1,900,156 $1,166,810 $ 680 $647,409 $ 71,245 $ 14,012 INSTALLMENT ACCOUNTS Approximate Original Beginning Quarterly Activity Ending Delinquent Billings Principal Prinicpal Total Principal Interest & Total Installment Receivables M Q A Balance Balance Principal Interest Payments Balance Principal Penalties Past Due LID Assessments - - 175 $1,773,787 $ 282,374 n/a n/a $ 15,537 $266,837 $ 65,924 $ 25,197 $ 91,121 Legend: M = Monthly Q = Quarterly A = Annually Page 4 of 5 EXHIBIT II SUMMARY OF GAMBLING TAX DELINQUENCY (as of June 30, 2016) Account(s) Sent to Collection: Michael's Tavern (2nd, 3rd & 4th Qtr 08) $ 8,082 Michael's Tavern (1st - 4th Qtr 13) 11,938 Michael's Tavern (1st - 2nd Qtr 14) 3,781 23,802 Account Currently at COY Legal: Brews & Cues (1st - 4th Qtr 10) 236 Brews & Cues (1st - 4th Qtr 14) 6,329 Brews & Cues (1st - 4th Qtr 15) 4,832 11,397 Total $ 35,199 EXHIBIT III LID ASSESSMENT RECEIVABLES (as of June 30, 2016) Quarterly Principal Activity Delinquent # of Beginning Ending Total LID # - Description Accts Balance Payments Balance Principal Interest Past Due 1052 - Willow Area Watermain 2 $ 399 $ 113 $ 286 $ 86 $ 28 $ 114 1056 - S. 7th, 8th , & 9th Avenue Sewer 12 2,661 432 2,229 2,229 224 2,453 1057 - N. 84th Avenue & Hawthorne Drive Sewer 8 22,972 1,605 21,367 21,367 8,358 29,725 1058 - N. 95th Avenue, 94th Place, W. Yakima Avenue Sewer 12 13,054 2,934 10,120 9,630 3,923 13,553 1060 - N. 85th Avenue & Kail Drive Sewer 10 57,195 7,443 49,752 1,296 408 1,704 1061 - Simpson Lane Sewer 49 157,845 3,010 154,835 31,316 12,256 43,572 Total 93 $ 254,126 $ 15,537 $ 238,589 $ 65,924 $ 25,197 $ 91,121 Page 5 of 5