HomeMy WebLinkAbout05/21/2019 06E 2019 1st Quarter Accounts Receivable Status Report to\'4\lyy tbxk ik 1
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BUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
AGENDA STATEM ENT
Item No. 6.E.
For Meeting of: May 21, 2019
ITEM TITLE: 2019 1st Quarter Accounts Receivable Status Report
SUBMITTED BY: Steve Groom, Director of Finance and 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 II -- Gambling Delinquency Detail
• Exhibit III -- Local Improvement District (LID) Receivables
ITEM BUDGETED: NA
STRATEGIC PRIORITY: Public Trust and Accountability
APPROVED FOR
SUBMITTAL: City Manager
STAFF RECOMMENDATION:
Review only. Submitted for routine transparency and accountability.
BOARD/COMMITTEE RECOMMENDATION:
ATTACHMENTS:
Description Upload Date Type
D 20191 t C carter re rt 5/7/2019 r Me o
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, , ,s FINANCE DEPARTMENT
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To: Mayor and City Council
Cliff Moore,City Manager
From: Steve Groom,Finance Department
Kathy Miles,Financial Services
Date: May 21,2019
Subject: Accounts Receivable Status Report- 1st Quarter 2019
This report presents the status of general receivables (non-utility billing) accounts as of March 31,2019
that are billed centrally by the Finance Department. The report that follows summarizes activity and
balances of general accounts and Local Improvement District (LID) assessment accounts.
Summary
• Total general accounts ending balance increased by$21,932 or 2.1%from prior quarter. Accounts
in collection total$163,823,or 15.5%of total ending balance.
• Total LID accounts ending balance decreased by$15,833 or 11.1%from prior quarter.
• The collections process is managed continuously and reviewed monthly
• Past due accounts are placed monthly with the city's collection agency
Collection Processes
Collection requirements vary between types of billing. For example,the City uses a collection agency to
collect significantly past due accounts in categories such as traffic,miscellaneous,and parks,whereas
unpaid sewer contracts become a lien against the real property. Collection activity of delinquent LID
accounts are coordinated with the City's legal department.
Accounts are sent to the City's collection agency when the balance is more than 90 days past due. After
collection efforts are exhausted, uncollectible accounts are reported annually to the City Council for
write-off approval.
2019 Accounts Receivable Quarterly Report-1
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RECURRING RECEIVABLES DETAIL Exhibit I
Downtown Yakima Business Improvement District-Annually/Quarterly(DYBID)
DYBID funds provide downtown services including deaning,maintenance,landscaping,safety and
business development activities. There are two types of billings, quarterly to all property/business
owners and annual billings to all individual businesses:
Annual Charges-The $17,487 in the collection column is for 92 accounts.
Quarterly Charges-The$9,320 in the collection column is for 22 accounts.
Fire Inspections
The Fire Department is currently doing about 500 inspections and compliance re-inspections per month;
there are currently 349 accounts in collection for a total of$51,214.
Front Sheet Business Improvement Assessment(FSBI)
Originally created in 2006,this program was created for the purpose of assisting trade,economic viability
and livability within the FSBI area. A total of 14 accounts are in collection,totaling$4,553.
Fruitvale Canal Billing
A separate irrigation fee for customers connected directly to the Fruitvale Canal,which is not owned by
the City. The City buys water through shares to serve City customers. There are 50 accounts billed
annually. A total of 2 accounts are in collection,totaling$100.
Miscellaneous Billing
Recurring billings in this category include transit bus passes for non-governmental entities,refuse
charges,rents and retiree premiums for health benefits. A total of 30 accounts are in collection, totaling
$11,445,primarily for Police event services and 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. Generally considered collectible,balances are
normally only a result of the timing of payments.
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. A total of 9
accounts are in collection totaling$4,136.
Airport
The majority of the$2,744 the collection column is for two vendors. Most of these charges are for a
delinquent lease,which is still incurring charges. The City continues to seek resolution. The$2,615 in
the legal column pertains to a land lease that the cities Legal department is looking into.
The Water/Wastewater Invoices and Connections
A total of 22 accounts are in collection,totaling$47,103,mainly for Wastewater pretreatment and strong
water fees,Water permits and Water and Wastewater equipment.
2019 Accounts Receivable Quarterly Report-2
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GAMBLING TAX DETAIL Exhibit II
Gambling Tax
The power to impose a Gambling Tax was adopted by ordinance in the City of Yakima in 1974. The
largest part of these taxes come from card games, with Punch boards,pull tabs and amusement games
making up for the rest.
This quarter the City received $255,104 in gambling tax revenue,year to date,this represents 24.3% of the
budgeted amount for the year($1,050,690),a decrease of 0.7%.
Gambling Tax Delinquencies -Exhibit II details the status of delinquent gambling tax accounts. The
beginning and ending balances are primarily comprised of two delinquent accounts. One,totaling
$15,719,has been sent to collection and the second,totaling$4,555,is making payments,coordinatng
with the City's Legal Department. The City informs the Gambling Commission of the status of these
accounts and keeps them informed of any changes to further any collection efforts. According to RCW
9.46.070,the Gambling Commission has the authority to revoke or suspend a gambling licenses for
violation of any provisions of the rules and regulations adopted in the code.
LID ASSESSMENT DETAIL Exhibit III
Local Improvement District(LID)
LID assessments are generally for improvements made to a parcel related to the Wastewater system.
There are currently six LIDs that the City is collecting assessments on,improvements all done previous to
2009. Delinquent amounts are unpaid installments for prior years plus interest. At of the end of the
quarter,the delinquent principal balance is$89,602. When accumulated interest of$28,690 is added,the
total amount past due is$118,292. The City's Legal Department is involved with collection efforts.
2019 Accounts Receivable Quarterly Report-3
RECURRING RECEIVABLES SUMMARY Exhibit I
Approximate 1st Quarter Activity Status
Billings Beginning New Inv Ending Current- Over Over
Recurring Receivables Detail M Q A Balance Billed Write-offs Balance 90 Days 90 Days 120 Days Collection Legal
Downtown Yak Bus Imp Dist
Annual(DYBIDA) 280 $ 18,837 $ 28,700 $ 18,624 $ 28,913 $ 10,526 $ $ 900 $ 17,487 $
Quarterly(DYBID) 700 22,718 34,486 32,943 24,261 3,529 11,412 9,320
Fire Inspections 500 97,384 49,275 44,406 102,253 25,723 7,400 17,916 51,214
Front St Business Impr(PSBI) 60 6,087 1,184 1,850 5,421 434 434 4,553
Fruitvale Canal Billing(FC) 100 125 125 25 100
Miscellaneous 75 19,364 63,421 38,716 44,068 31,628 995 11,445
Intergovernmental 350 25 35 446,908 933,921 927,515 453,314 443,296 75 9,943
Traffic Eng./Engineering 5 1,520 150 150 1,520 150 50 1,320
Parks&Recreation(WEED) 20 5 15,553 9,555 5,998 1,837 25 4,136
Airport 280 34,048 167,742 159,807 41,984 30,282 230 6,112 2,744 2,615
Water/WW Inv&Connections
City of Yakima 90 10 244,140 413,569 495,657 162,052 84,328 30,621 47,103
Terrace Heights/Union Gap 5 110,313 330,931 271,875 169,370 169,370
Sub-total Receivables 1,305 805 430 1,016,997 2,023,379 2,001,098 1,039,279 799,266 9,592 79,703 148,102 2,615
Gambling Tax 12 20,624 255,104 255,454 20,274 15,719 4,555
Total 1,305 817 430 $ 1,037,621 $ 2,278,483 $ 2,256,552 $ 1,059,553 $ 799,266 $ 9,592 $ 79,703 $ 163,821 $ 7,170
Approximate Original Beg 1st Quarter Activity Ending Delinquent
Billings Principal Principal Total Principal Interest& Total
Installment Receivables M Q A Balance Balance Principal Interest Payments Balance Principal Penalties Past Due
LID Assessments 60 $ 1,773,787 $ 142,955 $ 15,833 $ $ 15,833 $ 127,122 $ 89,602 $ 28,690 $ 118,292
Legend: M=Monthly Q=Quarterly A=Annually
Note:Amounts shown net of prepayments
2019 Accounts Receivable Quarterly Report-4
GAMBLING TAX DETAIL Exhibit II
1st Quarter
Account(s)sent to Collection: Balance
Michael's Tavern(1st-4th Qtr 13) $ 11,938
Michael's Tavern(1st-2nd Qtr 14) 3,781
15,719
Account currently at with payment arrangements per Legal:
Brews&Cues(1st-4th Qtr 14) 4,555
Total $ 20,274
LID ASSESSMENT DETAIL Exhibit III
1st Quarter Activity Delinquent
#of Beginning Ending Total
LID#-Description Accts Balance Payments Balance Principal Interest Past Due
1052-Willow Area Water Main 1 $ 286 $ 286 $ 285 $ 28 $ 313
1056-S.7th,8th,&9th Avenue Sewer 1 1,229 548 681 682 20 702
1057-N. 84th Avenue&Hawthorne Drive Sewer 3 18,131 18,131 18,131 7,933 26,064
1058-N. 95th Avenue,94th Place,W.Yakima Avenue Sewer 2 8,021 8,021 8,021 3,680 11,701
1060-N. 85th Avenue&Kail Drive Sewer 6 15,625 448 15,177 324 204 528
1061-Simpson Lane Sewer 45 99,663 14,837 84,826 62,159 16,825 78,984
Total 58 $ 142,955 $ 15,833 $ 127,122 $ 89,602 $ 28,690 $ 118,292
2019 Accounts Receivable Quarterly Report-5