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Home My WebLink About10/18/2016 06B 3rd Quarter 2016 Accounts Receivable Status Report IC t€ xs .1 nt. s n. BUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDASTATEMENT Item No. 6.B. For Meeting of: October 18, 2016 ITEM TITLE: 3rd Quarter 2016 Accounts Receivable Status Report SUBMITTED BY: Cindy Epperson, 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 I I -- Gambling Tax Delinquency Detail • Exhibit III - -Local Improvement District (LID) Receivables The outstanding balance of recurring receivables billed through Central Billing as of September 30, 2016 is $1,134,331 which includes $1,099,132 for General Receivables and $35,199 for Gambling Taxes. The outstanding balance for Installment Accounts that have been billed as of September 30, 2016 is $74,071 for LID Assessments. ITEM BUDGETED: NA STRATEGIC PRIORITY: Public Trust and Accountability APPROVED FOR SUBMITTAL: /1 City Manager STAFF RECOMMENDATION: Accept Report BOARD /COMMITTEE RECOMMENDATION: ATTACHMENTS: Description Upload Date Type D 3rd Qtr 2016 Accounts Receivable Report 10110,'2016 Coyer Memo City of Yakima FINANCE DEPARTMENT STAFF REPORT October 18, 2016 SUBJECT: Accounts Receivable Status Report 3rd Quarter 2016 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 September 30, 2016. CENTRAL BILLING ACCOUNTS RECEIVABLE Exhibit I is a summary by category (type) of the accounts billed through Central Receivables as of September 30, 2016. 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, typically at the first meeting in December. 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 5 RECURRING RECEIVABLES Downtown Yakima Business Improvement District - Annually /Quarterly (DYBID) — This assessment began in December 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 $16,571 in the collection column is for 93 accounts. Quarterly Charges — The $11,679 in the collection column is for 30 accounts. Fire Alarm Monitor (FAM) — There is one account in collection totaling $30. Front Street Business Improvement Assessment (FSBI) — A total of 12 accounts are in collection, totaling $2,919. Fruitvale Canal Billing — There is a separate irrigation fee for customers connected directly to the Fruitvale Canal. 50 accounts are billed annually. The $275 in the collection column is for six accounts. Miscellaneous Billing — Recurring billings in this category include transit bus passes, refuse charges and retiree premiums for health benefits, along with other truly miscellaneous one -time charges. The $10,830 in the collection column is for 36 accounts primarily for 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. The current balance is $391,064 and consists primarily of the Union Gap fire billing ($303,248). It should be noted that entities participating in YAKCORPS are given the option to pay the entire annual invoice when received, or split it in half. 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. The $7,212 in the collection column is for eleven accounts. Airport The majority of the $1,830 in the collection column is mainly for one vendor at the Airport, which is for a delinquent lease. The Water /Wastewater Invoices and Connections — The $15,611 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 $216,641 in gambling tax revenue. This total is 79.6% of the 2016 amended budget of $950,000. Page 2 of 5 Gambling Tax Delinquencies — Exhibit II details the status of delinquent gambling tax accounts. One delinquent account, totaling $23,802, has been sent to collection. Another account with taxes owing of $11,397 is currently being followed up by the Legal department for action. 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 Local Improvement District (LID) — Exhibit III summarizes the status of outstanding LID receivables. The delinquent amounts are unpaid installments for prior years plus interest. As of the end of the quarter, the delinquent principal balance is $74,071. When interest of $26,068 is added, the total amount past due is $100,139. Page 3 of 5 EXHIBIT I ACCOUNTS RECEIVABLE (as of September 30, 2016) CENTRAL BILLING ACCOUNTS RECEIVABLE Approximate Quarterly Activity Status Billings Beginning New Inv Payments/ Ending Current to Over Over Recurring Receivables M Q A Balance Billed Write -offs Balance 90 Days 90 Days 120 Days Collection Legal Downtown Yak Bus Impr Dist Annual (DYBIDA) - - 280 $ 21,031 $ - $ 3,100 $ 17,931 $ - $ - $ 1,360 $ 16,571 $ - Quarterly (DYBID) - 265 - 25,347 59,803 60,173 24,978 4,318 - 8,981 11,679 - Fire Alarm Monitor (FAM) - - - 30 - - 30 - - - 30 - Front Street Business Impr (FSBI) - 25 - 4,286 1,534 884 4,936 - 800 1,218 2,919 - Fruitvale Canal Billing (FC) - - 50 400 3,085 3,085 400 - - 125 275 - Miscellaneous 110 - - 495,898 65,154 127,378 433,674 9,833 3,780 409,231 10,830 - Intergovernmental 525 20 30 871,268 1,263,003 1,743,207 391,064 50,681 323,248 17,135 - - Traffic Eng./ Engineering 3 - - 1,470 150 50 1,570 100 100 1,370 - - Parks & Recreation (WEED) 10 - - 29,977 12,230 25,756 16,451 1,882 - 7,357 7,212 - Airport 400 - - 54,152 169,870 189,699 34,323 24,498 1,959 3,422 1,830 2,615 Water/WW Invoice & Connections City of Yakima 90 - 5 255,057 460,147 605,026 110,178 14,319 64,608 15,640 15,611 - Terrace Heights/Union Gap 4 4 1 106,041 324,366 366,810 63,597 63,597 - - - - Sub -total Receivables 1,142 314 366 1,864,957 2,359,342 3,125,167 1,099,132 169,227 394,495 465,839 66,957 2,615 Gambling Tax - 20 - 35,199 216,641 216,641 35,199 - - - 23,802 11,397 Total 1,142 334 366 $1,900,156 $2,575,983 $3,341,808 $1,134,331 $ 169,227 $394,495 $465,839 $ 90,759 $ 14,012 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 LID Assessments - - 175 $1,773,787 $ 282,374 n/a n/a $ 21,968 $260,406 $ 74,071 $ 26,068 $ 100,139 Legend: M = Monthly Q = Quarterly A= Annually Page 4 of 5 EXHIBIT II SUMMARY OF GAMBLING TAX DELINQUENCY (as of September 30, 2016) Account(s) Sent to Collection: Michael's Tavern (2nd, 3rd & 4th Qtr 08) $ 8,082 Michael's Tavern (1st - 4th Qtr 13) 11,938 Michael's Tavern (1st - 2nd Qtr 14) 3,781 23,802 Account Currently at COY Legal: Brews & Cues (1st - 4th Qtr 10) 236 Brews & Cues (1st - 4th Qtr 14) 6,329 Brews & Cues (1st - 4th Qtr 15) 4,832 11,397 Total $ 35,199 EXHIBIT III LID ASSESSMENT RECEIVABLES (as of September 30, 2016) Quarterly Principal Activity Delinquent # of Beginning Ending Total LID # - Description Accts Balance Payments Balance Principal Interest Past Due 1052 - Willow Area Watermain 2 $ 286 $ - $ 286 $ 285 $ 28 $ 313 1056 - S. 7th, 8th , & 9th Avenue Sewer 12 2,229 100 2,129 2,130 174 2,304 1057 - N. 84th Avenue & Hawthorne Drive Sewer 8 21,367 3,236 18,131 18,131 7,933 26,064 1058 - N. 95th Avenue, 94th Place, W. Yakima Avenue Sewer 12 10,120 929 9,191 9,191 3,885 13,076 1060 - N. 85th Avenue & Kail Drive Sewer 10 49,752 8,144 41,608 2,333 612 2,945 1061 - Simpson Lane Sewer 49 154,835 9,559 145,276 42,001 13,436 55,437 Total 93 $ 238,589 $ 21,968 $ 216,621 $ 74,071 $ 26,068 $ 100,139 Page 5 of 5