HomeMy WebLinkAbout03/24/2009 17A 4th Quarter 2008 Accounts Receivable Status Report BUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
AGENDA STATEMENT
Item No. X74
For Meeting of March 24, 2009
ITEM'I'I'I'LE: Accounts Receivable Status Report — 4th Quarter 2008
SUBMITTED BY: Finance Department
CONTACT PERSON/TELEPHONE: Cindy Epperson,` eputy Director of Acct/Budget, 575 -6070
Tim Jensen, Treasury Services Offic 75 -6070
SUMMARY EXPLANATION:
We are respectfully submitting the accounts receivable report as of December 31, 2008.
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:
0 • Staff Report.
• Exhibit I — Central Billing Accounts Receivable Summary.
(Includes total amounts billed and collected during the quarter.)
• Exhibit II -- Gambling Delinquency Detail
• Exhibit III — SIED Loans Summery
• Exhibit IV — Local Improvement District (LID) Receivables
The balance of outstanding Receivables billed through Central Billing as of
December 31, 2008 is: Gambling Taxes - $175,662; Section 108 Loans - $7,150; SIED
Loans - $64,242; LID Assessments $384,122. (Including delinquencies of $30,255).
Remaining Central Receivables $281,550 for a grand total of $912,726.
Resolution Ordinance Other (Specify) Report
Contract Mail to (name and address):
Phone:
Funding Source N/A
APPROVED FOR SUBMITTAL:�S �r
City Manager
STAFF RECOMMENDATION: Accept Report.
• BOARD /COMMISSION /COMMITTEE RECOMMENDATION:
COUNCIL ACTION:
Agenda Statement 4th Qtr OS 03/182009
Page 1 of 1
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CITY OF YAKIMA
FINANCE DEPARTMENT
STAFF REPORT
March 24, 2009
SUBJECT: Accounts Receivable Status Report
4th Quarter 2008
SUBMITTED BY: Finance Department
CONTACT PERSON: Cindy Epperson, Deputy Director of Acctg & Budgeting
' Tim Jensen, Treasury Services Officer
•
This report reflects the status of Central Billing Accounts Receivable at December 31, 2008.
0 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, 2008, 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 a lien 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, we provide narrative 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. Council approved write -offs at their December 9, 2008 meeting (Resolution R -2008-
® 172). These write - offs are included as a column in "4 Quarter Activity" and subtracted from
the beginning receivable balance, to arrive at the ending balance.
Staff Report 4th Qtr 08 03618/2009
Page 1 of 3
Downtown Yakima Business Improvement District (DYBID) - This is a new assessment that
became effective September 2008, and replaces the Parking & Business Improvement
Assessment. The new DYBID is billed quarterly to all property/business owners in the city's
central business district.
Fire Alarm Monitor [FAM) - The $262.50 in the "Collection" column represents three accounts.
Front Street Business Improvement Assessment (FSBI) - The $295.14 in the "Collection" column
represents four 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 $137.50 in the
"Collection" column represents four accounts.
Miscellaneous Billing - The billings under this category are mainly for transit bus passes and
refuse charges. The $7,679.16 in the "Collection" column represents sixty -three accounts; sixty -
one for refuse bin charges, one for lost video equipment and one for claim reimbursement.
Traffic Engineering/Engineering Billing - The $50.00 in the "Collection" column represents one
account for plans & specs. -
•
Parking and Business Improvement Assessment (PBIA) - The $642.42 in the "Collection"
column represents twenty -seven charges, 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 $1,844.75 in the "Collection" column represents six accounts;
five 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 11 remaining accounts
which have not yet met the write -off criteria have a balance of $7,905.92 and are
currently in collection.
Section 108 Loans - The $7,150.00 in the "Over 120 Days" column represents two annual
custodial fees.
Water -Sewer Invoices and Contract - The $28,490.98 in the "Collection" column are for
Water /Sewer invoices /contracts and fire hydrant meter charges, damages and utility back
billings sent to collection agency for follow up. The $3,211.09 in the "To Legal" column is for
Staff Report 4th Qtr 08.03618/2009
Page 2 of 3
li two u utility back billing charges. The $12,892.92 in the "Over 120 Days" column is for one
account for utility back billing charges. This account has a payment arrangement on file.
Gambling Tax
During the fourth quarter 2008, $213,065.69 in gambling tax payments were received for the
third quarter 2008 gambling period. These payments bring the year -to -date total to $913,884.
This is 96% of the 2008 budget of $951,000. (This reduction from budget was anticipated in the
year -end estimate of revenues.)
Gambling Tax Delinquencies — Exhibit II details the status of delinquent gambling tax accounts.
The delinquent accounts of four gambling establishments, totaling $11,940.20, have been sent to
collections. Three establishments totaling $2,902.53 have been notified by letter of their
delinquency. One account owes the City $160,819.30 in past due taxes; this account has been
forwarded to the City Legal department for further action. (Note: collection of these delinquent
taxes is complicated by a change in ownership. A demand Letter from the City's Legal
Department has been sent to the current & former owners and was forwarded to the gambling
commission, demanding payment. Follow up discussions are in process; however, payment of
the delinquent taxes will likely take an extended period of time. Legal is reviewing various
collection options.) Per e-mail notice from the Gambling Commission on 9/29/08, this business
40 has surrendered their gambling license.
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.
SLED Loans
Yakima County administers a program entitled Supporting Investment in Economic
Development (SIED). Typically, the City uses this program which offers 1 /s grant and 'h 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, 2008, there are no
accounts with delinquent balances due. Exhibit III summarizes the status of the outstanding
SIED loans.
Local Improvement District (UD)
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 UD 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. The 4th Qtr delinquent balance is $30,255, at
12/31/08. As an LID represents a lien against the property, and State law requires foreclosure
after 3 years assessments are past due. Finance Department will increase collection efforts on
® delinquent accounts in 2009 in attempt to minimize possible foreclosures in the future. Legal is
notified of any delinquency that is 2 years in arrears.
Staff Report 4th Qtr 08 03/18/2009
Page 3 of 3
• • . EX. I
City of Yakima
CENTRAL BILLING ACCOUNTS RECEIVABLE
(as of December 31, 2008)
--- 4th Quarter Activity °..----- ---- --- --- i
Approximate New . .
Billings Beginning Invoices Council Ending Current to Over Over To - To
I, Current M Q A Balance Billed Write -Offs Payments Balance 90 Days 90 Days 120 Days Collection Legal
Downtown Yakima Business
Improvement District 265 $ - $ 42,784.28 $ 39,345.57 $ 3,438.71 $ 3,438.71 $ - $ - $ - $ -
Fire Alarm Monitor Billing 89 532.50 4,987.50 5,257.50 262.50 1 - - - 262.50 -
Front St Bus. Imp. Assess. 20 653.89 983.75 225.00 • 917.50 495.14 150.00 50.00 0.00 295.14 0.00
Fruitvale Canal Billing 50 • 387.50 10.00 260.00 137.50 0.00 0.00 0.00 137.50 0.00
Miscellaneous 66 42,408.88 448,926.50 55.25 398,541.35 92,738.78 82,570.82 2,488.82 0.00 7,679.16 0.00
Traffic Eng./ Engineering 6 14,975.00 1,165.00 1,255.00 14,885.00 14,760.00 75.00 0.00 50.00 0.00
Parking & Bus. Imp. Assess. 5,789.92 0.00 4,812.50 335.00 642.42 S 0.00 0.00 0.00 642.42 0.00
Parks & Rec. 12 3,929.28 12,064.79 7,842.32 8,151.75 5,731.00 576.00 0.00 1,844.75 0.00
Police Inmate Medical Reim. 8,307.76 0,00 401.84 0.00 7,905.92 , 0.00 0.00 0.00 7,905.92 0.00
Section 108 Loans 3 13,800.00 0.00 6,650.00 7,150.00E 0.00 0.00 7,150.00 0.00 0.00
SIED Loans/ Contributions (1) 3 0.00 0,00 0.00 - j 0.00 0.00 0.00 0.00 0.00
Water/Sewer Invoice Sr Con. 25 4 204,910.42 758,972.19 4,514.93 816,484.62 142,883.06 98,237.99 50.08 12,892.92 28,490.98 3,211.09
Sub Totals 109 109 60 295,695.15 1,269,894.01 10,009.52 1,276,888.86 278,690.78 204,888.52 3,239.90 20,042.92 47,308.37 3,211.09
Gambling Tax 21 173,806.91 214,920.81 584.78 213,065.69 175,662.03 0.00 0.00 2,902.53 11,940.20 160,819.30
Total 109 130 60 $469,502.06 $1,484,814.82 $10,594.30 $1,489,954.55 $464,362.33 $204,888.52 $3,239.90 $22,945.45 $59,248.57 $164,030.39
M = Monthly Q = Quarterly A = Annually
Legend:
(1) Total outstanding SIED loans at 12/31/08 is $64,24183. There are currently no delinquent accounts.
•
i
Exhibits 4th Qtr 08 3/18/2009
EXHIBIT II
City of Yakima
SUMMARY OF GAMBLING TAX DELINQUENCY
(as of December 31, 2008)
Name Date Amount
(A) Account(s) Sent to Collection:
410 Restaurant lst, 2nd & 3rd Qtr 03 $ 3,837.36
Hoops 1st Qtr 08 4,093.90
Michael's Tavern 2nd Qtr 08 3,126.00
Minda Lanes 4th Qtr 07,1st/2nd Qtr 01 882.94
Total (Including penalties) 11,940.20
(B) Account(s) Sent to Legal:
Thunderbird Casino 1st, 3rd & 4th Qtr 07 160,819.30
Total (Including penalties) . 160,819.30
(C) Delinquent Account(s) Notified by Letter.
Hoops (2) 3rd Qtr 08 151.85
Little Dutch Inn 3rd Qtr 08 166.80
Michael's Tavern 3rd Qtr 08 2,583.88 •
Total (Including penalties) 2902.53
(D) Account(s) With Payment Arrangements
Total (Including penalties) -
$175,662.03
Summary
(A) Sent to Collection 11,940.20
(B) Sent to Legal 160,819.30
(C) Delinquent Accounts Notified by Letter 2,902.53
(D) Accounts With Payment Arrangements -
Total $175,662.03
Legend:
(1) Thunderbird Casino is also delinquent on their 1st & 2nd Qtr 08 taxes; due dates 4/30/08 & 7/31/08.
Refer to gambling tax narrative on pg 3 of this report for further information on this account.
(2) Hoops was sent a past due notice 12/18/08. •
(3) Little Dutch Inn was sent a past due notice 12/18/08.
(4) Michael's Tavern was sent a past due notice 12/18/08.
Exhibdss 4th Qtr 08 3/18/2009
•
EXHIBIT III
City of Yakima
SIED LOANS SUMMARY
(as of December 31, 2008)
Original Beginning --- --- 4th Quarter Activity - -- - - -- --- - -- Ending
Loan Principal --- - - - - -- Amount Billed (1) --- ------- Payments (1) -- ______ Past Due Principal
Acct. # Amount Balance Principal Interest Other Principal Interest Other Amount Balance
Cascade Quality Molding 4594 $44,000.00 $15,140.26 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $15,140.26
Cub Crafters 5526 25,000.00 10,705.71 0.00 0.00 0.00 0.00 0.00 0.00 0.00 10,705.71
Yakima Air Terminal 5644 64,500.00 38,395.86 0.00 0.00 0.00 0.00 0.00 0.00 0.00 38,395.86
Totals $133,500.00 $64,241.83 $0.00 $0.00 $0.00 $0.00 $0.00 50.00 $0.00 $64,241.83
•
(1) Annual loan payments, (i.e., principal and interest) are due:
(a) Cascade Quality Molding - June 1, 2008; Paid 7/31/08
(b) Cub Crafters - April 1, 2008; Paid 5 /12/08
(c)Yakima Air Terminal - June 1, 2008; Paid 5/19/08
Exhibits 4th Qtr 08 3/18/2009
EXHIBIT IV
City of Yakima
LID ASSESSMENT RECEIVABLES
(as of December 31, 2008)
Outstanding Principal - 4th. Quarter Outstanding Principal
# of Beginning Balance ---- - - ---- I Principal I --- - -- Ending Balance
LID # - Description Acct€ Current Delingent Total Adds Payments Current Delinquent Total
1049 - N 1st Ave Paving Project 23 $104,271.16 $0.00 $104,271.16 $0.00 $14,777.88 $89,375.28 $118.00 $89,493.28
1052 - Willow Area Watermain 2 $0.00 570.80 $570.80 0.00 0.00 $0.00 570.80 570.80
1055 - North 85th Ave Sewer 1 $1,985.80 0.00 $1,985.80 0.00. 0.00 $1,985.80 0.00 1,985.80
1056 - S 7th, 8th , & 9th ave Swrmn 33 118,955.40 7,915.42 $126,870.82 0.00 10,330.80 $101,642.10 14,897.92 116,540.02
1057 - N 84th Ave & Hawthorne Dr Swrmn 11 82,358.00 3,775.04 $86,133.04 0.00 0.00 $78,584.80 7,548.24 86,133.04
1058 - N 95th Ave, 94th P1 W Yak Ave Swrmn 27 86,678.90 2,719.93 $89,398.83 0.00 0.00 $82,278.40 7,120.43 89,398.83
Total $394,249.26 $14,981.19 $409,230.45 $0.00 $25,108.68 $353,866.38 $30,255.39 $384,121.77
Paip