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Home My WebLink About03/15/2011 11A Accounts Receivable Status Report - 4th Quarter 2010 BUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDA STATEMENT • Item No. 2 $` A For Meeting of March 15, 2011 ITEM TITLE: Accounts Receivable Status Report - 4th Quarter 2010 SUBMITTED BY: Finance Department CONTACT PERSON/TELEPHONE: Cindy Epperson, p. Director of Acct/Budget, 575 -6070 SUMMARY EXPLANATION: This report lists all accounts receivable balances handled through Central Billing. (Includes: Gambling tax, HUD Section 108, SIED Loans, LID's and numerous other misc. receivables.) The report has the following components: • Staff Report. • Exhibit I -- Central Billing Accounts Receivable Summary. (Includes total amounts billed and collected during the quarter.) ® • Exhibit 11 -- Gambling Delinquency Detail • Exhibit III -- SIED Loans Summary • • Exhibit IV — Local Improvement District (LID) Receivables The balance of outstanding Receivables billed through Central Billing as of December 31, 2010 is: Gambling Taxes - $172,739; Section 108 Loans - $9,830; SIED Loans - $39,869 (including delinquencies of $16,462); LID Assessments $823,453 (including delinquencies of $23,657). Remaining Central Receivables $379,315 for a grand total of $1,425,207. Resolution Ordinance Other (Specify) Report Contract Mail to (name and address): Phone: Funding Source N/A APPROVED FOR SUBMITTAL: \�`� �► City Manager STAFF RECOMMENDATION: Accept Report. BOARD /COMMISSION /COMMITTEE RECOMMENDATION: • COUNCIL ACTION: Quarterly A/R Agenda Statement City . of Yakima FINANCE DEPARTMENT STAFF REPORT March 15, 2011 SUBJECT: Accounts Receivable Status Report 4th Quarter 2010 SUBMITTED BY: Finance Department CONTACT PERSON: Cindy Epperson, Deputy Director of Accounting & Budgeting This report reflects the status of Central Billing Accounts Receivable at December 31, 2010. City's Central Billing Accounts Receivable A summary of each category (type) of account billed through Central Receivables, by frequency of billing, the number of customers, the balance at the beginning of the reporting period, the . quarterly activity of billings and payments and the aged receivable balance in each category as of December 31, 2010, is displayed in Exhibit 1. Each category billed has different collection remedies available. For example, Sewer contracts, and Local Improvement District assessments which remain unpaid can become alien against the real property to which the assessment is associated. Other billing categories, however, such as traffic, miscellaneous, and parks billings, do not become a lien and in some instances the City must use a collection agency or other collection action to enforce payment. On the following pages, a narrative is provided that includes information regarding those accounts that are more notable in size, aged at least 120 days, have been placed with the collection agency, are currently being pursued through legal proceedings, or are determined by the City's collection agency to be uncollectable. If a determination is made by the City's collection agency that an account is uncollectable, it is normally a result of the account being beyond the statute of limitations for collection, the agency is unable to locate the party or the firm has gone bankrupt. At this point, after all collection options are exhausted, an account is recommended for write -off to City Council. Once an item has been billed it takes Council action to remove it from our records; (Exception: write -offs of Municipal Court delinquencies are authorized by the Municipal Court Judges.) 41) Downtown Yakima Business Improvement District - Annually /Quarterly (DYBID) - This is an assessment that became effective September 2008, and replaced the Parking 8z Business Page 1 of 3 A/R 4th Quarter Report Improvement Assessment (PBIA). There are two types of billings; quarterly to all property / business owners and annual billings to all individual businesses located in this area. The first annual charge was billed on 1/29/09. Annual Charges - The $1,550.00 in the "Collection" column represents fifteen accounts. Quarterly Charges - The $900.60 in the "Collection" column represents seven accounts. Fire Alarm Monitor (FAM) - The $150.00 in the "Collection" column represents one account. Front Street Business Improvement Assessment (FSBI) - The $150.00 in the "Collection" column represents two accounts. Fruitvale Canal Billing - There is a separate irrigation fee for customers connected directly to the Fruitvale Canal, which involves billing 50 accounts annually; The $75.00 in the "Collection" column represents one account. Miscellaneous Billing - The billings under this category are mainly for transit bus passes and refuse charges. The $6,103.74 in the "Collection" column represents fifty -one accounts; forty -nine for refuse bin charges, one for plans and one for lost video equipment. Traffic Engineering / Engineering Billing - The $3,950 in the "Over 120 Days" column represents one account for sidewalk safety repairs (payments currently being made on a monthly basis). 4110 Parking and Business Improvement Assessment (PBIA) - The $110.00 in the "Collection" column represents seven accounts, which are being pursued by a collection agency on behalf of the City. This PBIA expired in April 2008 and has been replaced by the Downtown Yakima Business Improvement District. Parks and Recreation Billing - The $2,016.50 in the "Collection" column represents five accounts; four are for park use fees and one for building rental. Police Inmate Medical Reimbursement - In May 1999, the City started billing former inmates for medical costs incurred while in custody. At the Municipal Court study session in January, 2001, Council determined that performing this billing was not cost effective, and directed that this _ billing process be stopped. The 4 remaining accounts which have not yet met the write -off criteria have a balance of $448.42 and are currently in collection. Section 108 Loans - The $8,240.00 in the "Over 120 Days" column represents annual financial custodian fees. Water / Wastewater Invoices and Connections - The $22,286.11 in the "Collection" column is for twenty -five Water /Sewer invoices/ contracts and fire hydrant meter charges, damages and utility back billings sent to collection agency for follow up. Page 2 of 3 A/R 4th Quarter Report • Gambling Tax During the first quarter of 2011, $224,073.41 in gambling tax payments were received for the fourth quarter 2010 gambling period. Year to date gambling taxes collected are $842,025, $83,975 less than the 2010 budget of $926,000. This reduction was noted when the year -end estimates were made. Gambling Tax Delinquencies - Exhibit II details the status of delinquent gambling tax accounts. The delinquent accounts of two gambling establishments, totaling $11,919.76, have been sent to collections. A third account owes the City $160,819.30 in past due gambling taxes and penalties. In July 2008, the City filed a Complaint in Yakima County Superior Court for collection of the unpaid gambling taxes and penalties against the casino and officers, directors and /or managers. Per an e -mail notice from the Gambling commission in September 2008, the business surrendered its gambling license. In May 2009, the casino and one of the individuals filed Chapter 7 bankruptcy and subsequently were discharged by the bankruptcy court. No amounts have been collected on the debt to date. The Gambling Commission is aware of these delinquencies and is routinely informed of any status changes. As soon as a judgment is granted on any establishment, the Gambling Commission can revoke a license. SIED Loans Yakima County administers a program entitled Supporting Investment in Economic Development (SIED). Typically, the City uses this program which offers lh grant and 1 /z loan for infrastructure improvements, and enters into loan agreements with the companies that benefit from the improvements, with a 5 -year amortization. As of December 31, 2010, the ending balance due for the quarter was $16,462.37. Exhibit III summarizes the status of the outstanding SIED loans. Local Improvement District (LID) LID balances, like the SIED loans, are long -term receivables that have annual payments (typically with a 10 -year amortization schedule). Exhibit IV summarizes the status of outstanding LID receivables. The amounts considered delinquent are past due, while the amounts considered current include both the long -term portion of the liability and any balance currently billed, but not past the due date. As of December 31, 2010, the delinquent balance is $23,656.71. An LID represents a lien against the property, and State law requires foreclosure after 3 years assessments are past due. The Finance Department increased collection efforts on delinquent accounts in 2009 in an attempt to minimize possible foreclosures in the future. Legal is notified of any delinquency that is over 2 years in arrears. Page3of3 A/R 4th Quarter Report EXHIBIT III City of Yakima • SIED LOANS SUMMARY • (as of December 31, 2010) Original Beginning ----------------------- ---- -- Quarterly Activity - Ending Loan Principal - Amount Billed (1) Payments Balance Principal Acct. # Amount Balance Principal Interest Other Principal Interest Other Amount Balance Cascade Quality Molding (1) 4594 $44,000.00 $10,299.66 $5,043.91 $432.58 $0.00 $0.00 $0.00 $0.00 $5,476.49 $10,299.66 Yakima Air Terminal 5644 64,500.00 29,569.74 9,322.58 1,663.30 0.00 0.00 0.00 0.00 $10,985.88 29,569.74 Total (2) $108,500.00 $39,869.40 $14,366.49 $2,095.88 $0.00 $0.00 $0.00 $0.00 $16,462.37 $39,869.40 (1) Annual loan payments due - (a) Cascade Quality Molding - June 1st; (b) Yakima Air Terminal - June 1st. (2) Approximately $264,000 in additional SIED loans are pending completion. EXHIBIT IV • LID ASSESSMENT RECEIVABLES • (as of December 31, 2010) Outstanding Principal 4th Quarter Outstanding Principal # of Beginning Balance Principal Ending Balance ---- - ----- LID # - Description Accts Current Delinquent Total Adds Payments Current Delinquent Total 1049 - N 1st Ave Paving Project 23 $73,905.47 $0.00 $73,905.47 $0.00 $12,432.40 $59,583.52 $1,889.55 $61,473.07 1052 - Willow Area Watermain 2 0.00. 570.80 570.80 0.00 0.00 0.00 570.80 570.80 1056 - S 7th, 8th , & 9th Ave Sewer 26 72,225.80 4,189.50 76,415.30 0.00 14,520.30 56,309.00 5,586.00 61,895.00 1057 - N 84th Ave & Hwthm Dr Sewer 15 58,160.19 4,774.25 62,934.44 0.00 4,497.00 47,919.78 10,517.66 58,437.44 1058 - N 95th Ave, 94th Pl, W Yak Ave Sewer 20 53,850.50 ' 2,964.00 56,814.50 0.00 3,010.80 48,711.00 5,092.70 53,803.70 1060 - N 85th Ave & Kail Dr Sewer 17 201,882.56 0.00 201,882.56 0.00 0.00 201,882.56 0.00 201,882.56 1061 Simpson Lane Sewer 71 397,200.26 0.00 397,200.26 0.00 11,809.56 385,390.70 0.00 385,390.70 ' Total 174 $857,224.78 $12,498.55 $869,723.33 $0.00 $46,270.06 $799,796.56 $23,656.71 $823,453.27 AR Exhibits 4th Qrtr 3/10/2011 ® is 0 • • EXHIBIT Ih • • City of Yakima SUMMARY OF GAMBLING TAX DELINQUENCY (as of December 31, 2010) • (A) Account(s) Sent to Collection: 410 Restaurant (1st, 2nd & 3rd Qtr 03) $3,837.36 Michael's Tavern (2nd, 3rd .& 4th Qtr 08) 8,082.40 Total (Including penalties) 11,919.76 (B) Account(s) Sent to Legal: • • Thunderbird Casino (1st, 3rd & 4th Qtr 07) (1) 160,819.30 Total (Including penalties) 160,819.30 Total $172,739.06 • (1) Refer to gambling tax narrative on page 3 of this report for further information on this account. • • AR Exhibits 4th Qrtr 3/10/2011 EXHIBIT I City of Yakima CENTRAL BILLING ACCOUNTS RECEIVABLE (as of December 31, 2010) - 4th Quarter Activity — Approximate New Payments Billings Beginning Invoices & Council Ending Current to Over Over To To Current M Q A Balance Billed Write -offs Balance 90 Days 90 Days 120 Days Collection Legal Downtown Yak Bus Impr Dist Annual (DYBIDA) - - 418 $ 11,300.00 $ - $ 4,850.00 $ 6,450.00 $ • - $ - $ 4,900.00 $ 1,550.00 $ - Quarterly (DYBID) - 265 - 27,229.58 8,343.27 5,282.72 30,290.13 8,343.27 - 21,046.26 900.60 - Fire Alarm Monitor (FAM) - 90 - 225.00 - (52.50) 277.50 - 157.50 (30.00) 150.00 - Front Street Business Impr (FSBI) - 20 - 1,505.00 - (412.50) 1,917.50 - 667.50 1,100.00 150.00 - Fruitvale Canal Billing (FC) - - 50 1,100.00 - 800.00 300.00 - - 225.00 75.00 - Miscellaneous 90 - - 155,787.19 91,934.84 87,601.35 160,120.68 91,934.84 1,751.81 60,330.29 6,103.74 - • Traffic Eng./ Engineering 1 - - 3,950.00 - - 3,950.00 - - 3,950.00 - - Parking & Bus Impr Assess (PBIA) - - - 317.42 - 207.42 110.00 - - - 110.00 - Parks & Recreation (WEED) 15 - - 4,144.93 16,753.01 1,279.43 19,618.51 16,753.01 - 849.00 2,016.50 - Police Inmate Medical Reimb (IMED) - - - 1,603.56 - 1,155.14 448.42 - - - 448.42 - Section 108 Loans - - 1 8,240.00 1,590.00 - 9,830.00 1,590.00 - 8,240.00 - - SIED Loans/ Contributions - - 2 $39,869.40 - - 39,869.40 23,407.03 - 16,462.37 - - LTD Assessments t1) 174 869,723.33 - 46,270.06 823,453.27 - - - - - Water /WW Invoice & Connections City of Yakima 10 - 2 196,470.21 31,504.83 412,453.82 115,521.22 31,504.83 13,312.72 48,417.56 22,286.11 - Terrace Heights/Union Gap 6 - - 42,336.48 283,444.50 285,469.71 40,311.27 40,310.81 - 0.46 - - Sub Totals 122 375 647 1,363,802.10 433,570.45 544,904.65 1,252,467.90 213,843.79 15,889.53 165,490.94 33,790.37 - Gambling Tax 20 172,739.06 187,460.12 187,460.12 172,739.06 - - - 11,919.76 160,819.30 • Total 122 395 647 $1,536,541.16 $621,030.57 $732,364.77 $1,425,206.96 $213,843.79 $15,889.53 $165,490.94 $45,710.13 $160,819.30 (1) LID Assessments: There are several LID's, each in a different phase of their original ten year "pay back" period. Refer to Exhibit IV, attached, for delinquent information regarding each LID. Legend: M = Monthly Q = Quarterly A = Annually AR Eit 3/10/2011 el . 0