HomeMy WebLinkAbout08/21/2012 04C Accounts Receivable Status Report - 2nd Quarter 2012 ,
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BUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
AGENDA STATEMENT
Item No.
For Meeting of: August 21, 2012
ITEM TITLE: Accounts Receivable Status Report - 2nd Quarter 2012
SUBMITTED BY: Finance Department
CONTACT Cindy Epperson, Director of Finance and Budget, 575 -
PERSON /TELEPHONE: 6070
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 -- SIED Loans Summary
• Exhibit IV - Local Improvement District (LID) Receivables
The outstanding balance of recurring receivables billed through Central Billing as of June
30, 2012 is $817,812 which includes $636,174 for General Receivables and $181,638 for
Gambling Taxes. The outstanding balance for Installment Accounts that have been billed as
of June 30, 2012 is $69,395, which is for LID Assessments.
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❑ 2012 2nd Quarter Accounts Recievable Status Report
City of 'Yakima
FINANCE DEPARTMENT
STAFF REPORT
August 21, 2012
SUBJECT: Accounts Receivable Status Report
2nd Quarter 2012
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, 2012.
CENTRAL BILLING ACCOUNTS RECEIVABLE
Exhibit I is a summary by category (type) of the accounts billed through Central Receivables as of
June 30, 2012. 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.)
Page 1 of 6
RECURRING RECEIVABLES
Downtown Yakima Business Improvement District- Annually /Quarterly (DYBID) — This
assessment began in September 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 $11,158.31 in the collection column is for 74 accounts.
Quarterly Charges — The $26,755.23 in the collection column is for 34 accounts.
Fire Alarm Monitor (FAM) — There are two accounts in collection totaling $108.75.
Front Street Business Improvement Assessment (FSBI) — A total of eleven accounts are in
collection, totaling $1,001.25.
Fruitvale Canal Billing — There is a separate irrigation fee for customers connected directly to the
Fruitvale Canal. 50 accounts are billed annually. The $275.00 in the collection column is for five
accounts.
Miscellaneous Billing — Recurring billings in this category include transit bus passes, refuse
charges and retiree premiums for health benefits. This category also includes the truly
miscellaneous one -time charges. The $7,874.38 in the collection column is for 61 accounts; 60 for
refuse bin charges and one for lost video equipment.
Intergovernmental — This category includes billings to other governmental agencies, including
state agencies, counties, cities, school districts, and local police and fire departments.
Traffic Engineering / Engineering Billing — This account is generally for sidewalk safety repairs,
and currently has nothing in collection.
Parking and Business Improvement Assessment (PBIA) — The $110.00 in the collection column is
for seven accounts which are being handled by a collection agency. This PBIA expired in April
2008 and has been replaced by the Downtown Yakima Business Improvement District.
Parks and Recreation Billing — The $4,763.50 in the collection column is for four accounts.
Police Inmate Medical Reimbursement — In May 1999, the City started billing former inmates for
medical costs incurred while they were in custody. At the Municipal Court study session in
January, 2001, Council determined that billing these accounts was not cost effective and directed
Finance to stop billing them. The $448.42 in collection is for the remaining four accounts.
Water /Wastewater Invoices and Connections — The $24,530.06 in collection is for 26 Water /Sewer
invoices /contracts and fire hydrant meter charges, damages to Water /Sewer equipment, and
utility back billings.
Page 2 of 6
Gambling Tax
This quarter the City received $223,331.01 in gambling tax revenue. Year to date the City has
received $434,440 in gambling taxes which is 49.9% of the 2012 budget of $871,000.
Gambling Tax Delinquencies — Exhibit II details the status of delinquent gambling tax accounts.
The three delinquent accounts, totaling $16,196.56, have been sent to collection.
A fourth 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 against the casino and officers,
directors and /or managers for collection of the unpaid gambling taxes and penalties. The
Gambling commission notified us in September 2008 that the business had surrendered its
gambling license. In May 2009, the casino and one of the defendants filed Chapter 7 bankruptcy
and their liabilities were discharged by the bankruptcy court. On January 29, 2010 a default
judgment was obtained against one of the defendants for this outstanding balance plus expenses.
In early 2012, the City attorney handling this case recommended that the City write off this debt
due to the inability to collect the debt. Consequently, it will be written off at the end of the year.
For the last delinquent account, the City entered into payment arrangements with the business.
The business has not lived up to the agreement. This account will be sent to collection if this
situation continues.
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
SIED Loans — Yakima County administers a program for investing in economic development in
Yakima County, Supporting Investment in Economic Development (SIED). The City uses this
program, which offers 1/2 grant and 1/2 loan, for infrastructure improvements and loans with the
companies that benefit from the improvements. These loans have a 5 -year amortization. As of the
end of the quarter all accounts were current. Exhibit III summarizes the status of the outstanding
SIED loans.
Local Improvement District (LID) — Exhibit IV summarizes the status of outstanding LID
receivables. The delinquent amounts are unpaid installments for prior years plus fines and
interest. As of the end of the quarter, the delinquent balance is $69,395.96.
Page of 6
EXHIBIT I
ACCOUNTS RECEIVABLE
(as of June 30, 2012)
CENTRAL BILLING ACCOUNTS RECEIVABLE
Approximate I Quarterly Activity Status
Billings Beginning New invoices Ending Current to Over Over To To
Recurring Receivables M Q A Balance Billed Payments Balance 90 Days 90 Days 120 Days Collection Legal
Downtown Yak Bus Impr Dist
Annual (DYBIDA) - - 300 $20,433.75 $2,200.00 $9,850 44 $12,783.31 $100.00 $0.00 $1,525.00 $11,158.31 -
Quarterly (DYBID) - 300 - 30,871.28 42,368.47 33,470.93 39,768.82 12,603.14 - 410.45 26,755.23 -
Fire Alarm Monitor (FAM) - 90 - 311.25 4,822.50 4,995.00 138.75 30.00 - - 108.75 -
Front Street Business Impr (FSBI) - 20 - 1,10125 933.75 700.00 1,335.00 233.75 - 100.00 1,001.25 -
Fruitvale Canal Billing (FC) - - 30 275.00 3,535.00 3,395.00 415.00 140.00 - - 275.00 -
Miscellaneous 200 - - 86,360.56 23,619.27 25,496.62 84,483.21 6,848.52 150.00 69,610.31 7,874.38 -
Intergovernmental 1 4 15 437,102.58 389,990.20 750,118.05 76,974.73 72,498.51 5,317.00 (840:78) - -
Traffic Eng./ Engineering 1 1 - 33,660.32 66,149.56 99,459.88 350.00 150.00 50.00 150.00 - -
Parking & Bus Impr Assess (PBIA) - 1 - 195.08 85.08 85.08 195.08 85.08 - - 110.00 -
Parks & Recreation (WEED) 10 - - 4,771.50 11,831.50 4,648.32 11,954.68 7,191.18 - - - 4,763.50 -
Section 108 Loan Fees (t) - - 1 11,950.00 - 11,950.00 - - - - - -
Police Inmate Medical Reimb - - - 448 42 - - 448.42 - - - 448.42 -
Water/WW Invoice & Connections -
City of Yakima 10 - 2 34,184.64 493,561.72 266,003.32 261,743.04 230,943.31 3,275.09 2,994.58 24,530.06 -
Terrace Heights/Union Gap 2 2 4 82,673.97 180,595.15 117,684.83 145,584.29 145,584.29 - - - -
Sub - total Receivables 224 418 352 744,339.60 1,219,692.20 1,327,857.47 636,174.33 476,307.78 8,792.09 73,949.56 77,024.90 -
Gambling Tax - 20 - 182,087.86 222,881.01 223,331.01 $181,637.86 - - 4,622.00 16,196.56 $160,819.30
Total 224 438 352 926,427.46 1,442,573.21 1,551,188.48 817,812.19 476,307 78 '8,792.09 78,571.56 93,221.46 160,819.30
INSTALLMENT ACCOUNTS
Approximate Original Be ginnin g 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
SIED Loans/ Contributions - - 4 372,500.00 $163,669.26 64,699.02 7,285.74 71,984.76 98,970.24 - - -
LID Assessments - - 175 1,773,787.00 651,873.02 n/a n/a 66,518.26 585,354.76 33,786.33 35,609.63 69,395.96
Sub -total Installment Receivables - - 179 $2,146,287.00 $815,542.28' $64,699.02 $7,285.74 $138,503.02 $684,325.00 $33,786.33 $35,609.63 $69,395.96
(1) Billed annually in July of each year
Legend: M= Monthly Q= Quarterly A= Annually
Page 4 of 6
EXHIBIT II
City of Yakima
SUMMARY OF GAMBLING TAX DELINQUENCY
(as of June 30, 2012)
(A) Account(s) Sent to Collection:
410 Restaurant (1st, 2nd & 3rd Qtr 03) $3,837.36
Michael's Tavern (2nd, 3rd & 4th QtrO8) 8,082.40
Minda Lanes (3rd & 4th Qtr 2009 /1st -4th Qtr 10) 4,276.80
Total (Including penalties) 16,196.56
(B) Account(s) Sent to Legal:
Thunderbird Casino (lst, 3rd & 4th Qtr 07) (t) 160,819.30
Total (Including penalties) 160,819.30
(C) Account(s) With Payment Arrangements:
Brews & Cues (1st - 4th Qtr 10) (2) 4,622.00
Total (Including penalties) 4,622.00
Total $181,637.86
(1) Refer to gambling tax narrative on page 3 of this report for further information on this account.
(2) Collection letter to be sent - arrangements riot kept.
Page 5 of 6
EXHIBIT III
City of Yakima
SIED LOANS SUMMARY
(as of June 30, 2012)
•
Original Beginning Quarterly Activity Ending Delinquent
Loan Principal Amount Billed (I) Principal Total
Acct. # Amount Balance Principal Interest Payments Balance Principal Interest Past Due
McAllister Field/Italstone 5024 214,000.00 132,787.44 42,643.32 4,979.53 47,622.85 90,144.12 0.00 0.00 0.00
Yakima Air Terminal 5644 64,500.00 19,226.30 10,400.18 585.02 10,985.20 8,826.12 0.00 0.00 0.00
Fiesta Foods 6970 50,000.00 11,655.52 11,655.52 1,721.19 13,376.71 0.00 0.00 0.00 0.00
Total $328,500.00 $163,669.26 $64,699.02 $7,285.74 $71,984.76 898,970.24 $0.00 $0.00 $0.00
(1) Annual loan payments due - (a) McAllister - December 1st; (b) Yakima Air Terminal- May 1st.
EXHIBIT IV
LID ASSESSMENT RECEIVABLES
(as of June 30, 2012)
— Quarterly Principal Activity — Delinquent
# of Beginning Ending Interest & Total
LID # - Description Accts Balance Payments Balance Principal Penalties Past Due
1049 - N 1st Ave Paving Project 23 $44,113.71 0.00 $44,113.71 $0.00 $0.00 $0.00
1052 - Willow Area Watermain 2 570.80 0.00 570.80 570.80 558.40 1,12920
1056 - 5. 7th, 8th, & 9th Avenue Sewer 26 44,488.00 0.00 44,488.00 4,189.50 4,105.65 8,295.15
1057 - N. 84th Avenue & Haw thorne Drive Sewer 15 56,192.54 12,371.19 43,821.35 10,884.69 13,688.52 24,573.21
1058 - N. 95th Avenue, 94th Place, W Yakima Avenue Sewer 20 46,113.90 5,656.20 40,457.70 7,221.40 8,689.08 15,910.48
1060 - N. 85th Avenue & Kail Drive Sewer 17 160,951.62 43,517 40 117,434.22 2,593.02 2,043.00 4,636.02
1061 - Simpson Lane Sewer 71 299,442.45 4,973.47 294,468.98 8,326.92 6,524.98 14,851.90
Total 174 $651,873.02 $66,518.26 $585,354.76 $33,786.33 $35,609.63 $69,395.96
Page 6 of 6