HomeMy WebLinkAbout03/05/2013 05A Accounts Receivable Status Report - 4th Quarter 2012 BUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
AGENDA STATEMENT
Item No. g"
For Meeting of: March 5, 2013
ITEM TITLE: Accounts Receivable Status Report - 4th Quarter 2012
SUBMITTED BY: ` Cindy Epperson, Director of Finance and Budget, 576-
6771
CONTACT
PERSON /TELEPHONE:
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
December 31, 2012 is $1,524,371 which includes $1,503,553 for General Receivables and
$20,819 for Gambling Taxes. The outstanding balance for Installment Accounts that have
been billed as of December 31, 2012 is $65,570, which is for LID Assessments.
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ath Qtr Acct Receivable Report
City of Yakima
FINANCE DEPARTMENT
STAFF REPORT
March 5, 2013
SUBJECT: Accounts Receivable Status Report
4th 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 December 31, 2012.
CENTRAL BILLING ACCOUNTS RECEIVABLE
Exhibit I is a summary by category (type) of the accounts billed through Central Receivables as of
December 31, 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.) The last write -off
was approved by City Council on December 4, 2012, and those accounts have been removed
from our outstanding balance.
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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 $10,008 in the collection column is for 62 accounts.
Quarterly Charges - The $44,787 in the collection column is for 40 accounts.
Fire Alarm Monitor (FAM) - There are two accounts in collection totaling $64.
Front Street Business Improvement Assessment (FSBI) - A total of eight accounts are in
collection, totaling $1,231.
Fruitvale Canal Billing - There is a separate irrigation fee for customers connected directly to the
Fruitvale Canal. 50 accounts are billed annually. The $300 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 a charge to BNSF
for the railway company's share of Lincoln Avenue underpass of $1,044,944 that was paid in
January of 2013, along with other truly miscellaneous one -time charges. The $6,932 in the
collection column is for 50 accounts; 48 for refuse bin charges, one for parking permits 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) /Parking Assessments - The $225.00 in
the collection column is for five accounts which are being handled by a collection agency and one
account for a bin enclosure lease. This PBIA expired in April 2008 and has been replaced by the
Downtown Yakima Business Improvement District.
Parks and Recreation Field Rental Billing - The $4,764 in the collection column is for four
accounts.
Parks and Recreation Beyond the Bell Program - This is an afterschool program run by the City that
did not charge for services previously. Charges were implemented at the end of 2012 to try to recoup
some of the costs associated with the program. As this is a new program billing, there are currently
no accounts in collection.
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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 in collection is for the remaining four accounts.
Water /Wastewater Invoices and Connections - The $12,858 in collection is for 17 Water /Sewer
invoices /contracts and fire hydrant meter charges, damages to Water /Sewer equipment, and
utility back billings.
Gambling Tax
This quarter the City received $207,738 in gambling tax revenue. Year to date the City has
received $852,243 in gambling taxes which is 97.9% of the 2012 budget of $871,000.
Gambling Tax Delinquencies - Exhibit II details the status of delinquent gambling tax accounts.
Three delinquent accounts, totaling $16,197, have been sent to collection. One account with
previous payment arrangements and in arrears $4,622 has been sent a collection letter and will be
sent to collection if not paid in full by March 1st.
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
SLED 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 /z grant and 1 /z 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 $65,570.
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EXHIBIT I
ACCOUNTS RECEIVABLE
(as of December 31, 2012)
CENTRAL BILLING ACCOUNTS RECEIVABLE
Approximate - Quarterly Activity - - - Status
Billings Beginning New 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) - - 475 $11,183 $0 $225 $10,958 $0 $0 $950 $10,008 $0
Quarterly (DYBID) - 250 - 46,906 42,519 34,608 54,817 0 9,551 479 44,787 0
Fire Alarm Monitor (PAM) - 90 - 356 4,883 5,130 109 0 75 (30) 64 0
Front Street Business Impr (FSBI) - 20 - 1,619 984 938 1,665 0 334 100 1,231 0
Fruitvale Canal Billing (FC) - - 50 315 0 25 290 0 0 (10) 300 0
Miscellaneous 100 - - 1,122,602 24,253 85,771 1,061,084 8,508 1,044,998 646 6,932 0
Intergovernmental 125 25 25 139,663 817,007 728,244 228,426 220,963 0 7,464 0 0
Traffic Eng./ Engineering 2 1 - 450 150 200 400 150 50 200 0 0
Parking & Bus Impr Assess (PBIA) - 1 - 280 85 110 255 0 0 0 255 0
Parks & Recreation (WEED) 10 - - 6,545 2,302 3,769 5,077 0 0 314 4,764 0
Parks & Rec (Beyond the Bell) 110 - - 0 5,235 2,790 2,445 2,445 0 0 0 0
Police Inmate Medical Reimb - - - 448 0 0 448 0 0 0 448 0
Water/WW Invoice & Connections
City of Yakima 10 - 2 143,717 692,318 765,232 70,803 10,003 5,697 42,244 12,858 0
Terrace Heights/Union Gap 2 2 4 74,125 239,986 247,337 66,775 66,775 0 0 0 0
Sub -total Receivables 359 389 556 1,548,209 1,829,722 1,874,378 1,503,553 308,844 1,060,705 52,357 81,648 0
Gambling Tax - 20 - 181,638 46,919 207,738 20,819 0 0 4,622 16,197 0
Total 359 409 556 $1,729,847 $1,876,640 $2,082,116 $1,524,371 $308,844 $1,060,705 $56,979 $97,844 $0
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
SIEDLoans /Contributions - - 1 $372,500 $98,970 $0 $0 $0 $98,970 $0 $0 $0
LIDAssessments - - 175 1,773,787 579,139 n/a n/a 23,619 555,520 31,795 33,775 65,570
Sub -total Installment Receivables - - 176 $2,146,287 $678,109 $0 $0 $23,619 $654,490 $31,795 $33,775 $65,570
(1) Billed annually in July of each year.
Legend: M = Monthly Q = Quarterly A = Annually
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EXHIBIT II
City of Yakima
SUMMARY OF GAMBLING TAX DELINQUENCY
(as of December 31, 2012)
(A) Account(s) Sent to Collection:
410 Restaurant (1st, 2nd & 3rd Qtr 03) $3,837
Michael's Tavern (2nd, 3rd & 4th Qtr 08) 8,082
Minda Lanes (3rd & 4th Qtr2009/1st - 4th Qtr 10) 4,277
Total (Including penalties) 16,197
(C) Account(s) With Payment Arrangements:
Brews & Cues (1st -4th Qtr 10) (1) 4,622
Total (Including penalties) 4,622
Total $20,819
(1) Collection letter s ent, to go to collection if not paid in full by 3/1/13
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EXHIBIT III
City of Yakima
SIED LOANS SUMMARY
(as of December 31, 2012)
Original Beginning Quarterly Activity Ending Delinquent
Loan Principal Amount Billed t ' Principal Total
Acct. # Amount Balance Principal Interest Payments Balance Principal Interest Past Due
McAllister Field /Italstone 5024 $214,000 $90,144 $0 $0 $0 $90,144 $0 $0 $0
Total $214,000 $90,144 $0 $0 $0 $90,144 $0 $0 $0
(1) Annual loan payments due - (a) McAllister - December 1st; (b) Yakima Air Terminal- May 1st.
EXHIBIT IV
LID ASSESSMENT RECEIVABLES
(as of September 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 $44,114 $14,776 $29,338 $0 $0 $0
1052 - Willow Area Watermain 2 571 0 571 571 558 1,129
1056 - S. 7th, 8th , & 9th Avenue Sewer 26 41,230 6,467 34,763 2,793 2,737 5,530
1057 - N. 84th Avenue & Hawthorne Drive Sewer 15 43,821 0 43,821 10,885 13,689 24,573
1058 - N. 95th Avenue, 94th Place, W. Yakima Avenue Sewer 20 40,458 0 40,458 7,221 8,689 15,910
1060 - N. 85th Avenue & Kail Drive Sewer 17 116,138 1,296 114,842 2,593 2,043 4,636
1061 - Simpson Lane Sewer 71 292,808 1,080 291,728 7,732 6,059 13,791
Total 174 $579,139 $23,619 $555,520 $31,795 $33,775 $65,570
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