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Home My WebLink About06/20/2017 06C 1st Quarter 2017 Accounts Receivable Status ReportBUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDASTATEMENT Item No. 6.C. For Meeting of: June 20, 2017 ITEM TITLE: 1 st Quarter 2017 Accounts Receivable Status Report SUBMITTED BY: Tara Lewis, Interim Director of Finance & 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 Delinquency Detail • Exhibit III -- Local Improvement District (LID) Receivables The outstanding balance of recurring receivables billed through Central Billing as of March 31, 2017 is $1,331,298 which includes $1,305,574 for General Receivables and $25,724 for Gambling Taxes. The outstanding balance for Installment Accounts that have been billed as of March 31, 2017 is $64,648 for L I D Assessments. ITEM BUDGETED: NA STRATEGIC PRIORITY: Public Trust and Accountability APPROVED APPROVED FOR FOR �" �`" City C&7 � SUBMITTAL: SUBMITTAL: Manager STAFF RECOMMENDATION: Accept Report BOARD/COMMITTEE RECOMMENDATION: ATTACHMENTS: Description Upload Date Type D 1st Qtr 2017 AR Report 6/13/2017 Cowr Memo City of Yakima FINANCE DEPARTMENT STAFF REPORT June 13, 2017 SUBJECT: Accounts Receivable Status Report 1st Quarter 2017 SUBMITTED BY: Finance Department CONTACT PERSON: Tara Lewis, Interim Director of Finance and Budget The Accounts Receivable Status Report presents the status of General and Installment Accounts Receivable as of March 31, 2017 that are billed through the City's Central Billing office. ACCOUNTS RECEIVABLE Exhibit I contains two charts summarizing activity and balances as of March 31, 2017. The first chart depicts general accounts receivable listed by the type or category of bill. The second depicts LID assessment accounts in total. The reports display the frequency of billing, the number of customers, the balance at the beginning of the reporting period, the amount billed and payments received during the quarter and the ending balance. Information as to the status and age of the general accounts receivable is also provided. Various categories of accounts may have 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 to collect significantly past due accounts. Accounts in Collection status have been placed with the City's collection agency. Accounts are classified as uncollectable when the original bill date is beyond the statute of limitations for collection; the agency cannot locate the party; or the customer has been declared bankrupt or is deceased. At year end, uncollectable general 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. Note that this report does not include regular Utility Account or Municipal Court Receivables. 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 $14,796 in the collection column is for 81 accounts. Quarterly Charges - The $8,748 in the collection column is for 21 accounts. Fire Alarm Monitor (FAM) - There is one account in collection totaling $30. Fire Inspections - This new revenue source began in January, 2017 - there were 270 accounts billed in this first quarter, for a total of $28,465. Front Street Business Improvement Assessment (FSBI) - A total of 10 accounts are in collection, totaling $2,619. 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 represents 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 $10,677 in the collection column represents 33 accounts that are primarily 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. 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 $3,924 in the collection column is for ten accounts. Airport The majority of the $1,153 in the collection column is mainly for one vendor at the Airport, which is for a delinquent lease. The $2,167 in the legal column pertains to a land lease that is outstanding. The Water/Wastewater Invoices and Connections - The $21,152 in collection is for 19 Water/Sewer invoices/contracts and fire hydrant meter charges, damages to Water/Sewer equipment, and utility back billings. Page 2 of 5 Gambling Tax This quarter the City received $250,326 in gambling tax revenue, which represents 25.8% of the budget amount of $970,500. Gambling Tax Delinquencies - Exhibit II details the status of delinquent gambling tax accounts. One delinquent account, totaling $15,719, has been sent to collection. Another account with taxes owing of $10,115 has now made payment arrangements coordinated by the Legal department. 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 $64,648. When accumulated interest of $25,319 is added, the total amount past due is $89,967. Page 3 of 5 CENTRAL BILLING ACCOUNTS RECEIVABLE (as of March 31, 2017) GENERAL ACCOUNTS Quarterly Activi Beginning New Inv Payments/ Balance Billed Write-offs $ 16,581 $ 21,851 30 4,520 400 424,067 88,976 1,620 11,477 30,292 24,200 $ 33,462 28,465 1,234 25,512 1,489,180 150 11,191 197,137 15,685 $ 34,445 8,500 800 22,521 1,144,390 150 13,993 177,466 EXHIBIT I Status Ending Current to Over Over Balance 90 Days 90 Days 120 Days Collection Legal 25,096 20,868 30 19,965 4,954 400 427,057 433,766 1,620 8,675 49,962 175,109 Approximate 412,462 Billings 104,280 351,615 Recurring Receivables M Q A Downtown Yak Bus Impr Dist 1,305,574 27,185 248,865 Annual (DYBIDA) - - 280 Quarterly (DYBID) - 265 - Fire Alarm Monitor (FAM) - - - Fire Inspections - 270 - Front Street Business Impr (FSBI) - 25 - Fruitvale Canal Billing (FC) - - 50 Miscellaneous 110 - - Intergovernmental 525 20 30 Traffic Eng./ Engineering 3 - - Parks & Recreation (WEED) 10 - - Airport 400 - - Water/WW Invoice & Connections City of Yakima 90 - 5 Terrace Heights/Union Gap 4 4 1 Sub -total Receivables 1,142 584 366 Gambling Tax - 20 Total 1,142 604 366 GENERAL ACCOUNTS Quarterly Activi Beginning New Inv Payments/ Balance Billed Write-offs $ 16,581 $ 21,851 30 4,520 400 424,067 88,976 1,620 11,477 30,292 24,200 $ 33,462 28,465 1,234 25,512 1,489,180 150 11,191 197,137 15,685 $ 34,445 8,500 800 22,521 1,144,390 150 13,993 177,466 EXHIBIT I Status Ending Current to Over Over Balance 90 Days 90 Days 120 Days Collection Legal 25,096 20,868 30 19,965 4,954 400 427,057 433,766 1,620 8,675 49,962 175,109 410,078 412,462 172,725 104,280 351,615 315,439 140,456 879,203 2,572,223 2,145,852 1,305,574 27,185 248,865 250,326 25,724 L-226 ,388 $2,821,088 $2,396,178 $L331, 998 INSTALLMENT ACCOUNTS $ 9,300 $ - $ 1,000 $ 14,796 $ 3,298 - 8,823 8,748 - - - 30 19,965 - - - 834 - 1,501 2,619 - - 125 275 8,610 6,000 401,830 10,617 429,893 - 3,873 - 150 50 1,420 - - - 4,751 3,924 43,888 140 1,153 2,167 2,615 142,995 348 8,230 21,152 - 140,456 799,388 6,538 432,706 64,327 2,615 - - - 15,719 10,005 $ 799,388 6 538 432 706 J__50 ,046 $12,620 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 LIDAssessments - - 175 $ 1,773,787 $ 207,539 n/a n/a $ 21,175 $ 186,364 $ 64,648 $ 25,319 $ 89,967 Legend: M = Monthly Q = Quarterly A= Annually Page 4 of 5 EXHIBIT II SUMMARY OF GAMBLING TAX DELINQUENCY (as of March 31, 2017) Account(s) sent to Collection: Michael's Tavern (1st -4th Qtr13) Michael's Tavern (1st - 2nd Qtr 14) Account currently at with payment arrangements per Legal: Brews &Cues (1st -4th Qtr 14) Brews &Cues (1st -4th Qtr 15) Total LID ASSESSMENT RECEIVABLES (as of March 31, 2017) LID # - Description 1052 - Willow Area Watermain 1056 - S. 7th, 8th, & 9th Avenue Sewer 1057 - N. 84th Avenue & Hawthorne Drive Sewer 1058 - N. 95th Avenue, 94th Place, W. Yakima Avenue Sewer 1060 - N. 85th Avenue & Kail Drive Sewer 1061 - Simpson Lane Sewer Total #of Accts 1 1 3 2 6 45 58 $ 11,938 3,781 15,719 5,105 4,900 10,005 $ 25,724 Beginning Ending Balance Payments Balance $ 286 $ - $ 286 1,729 250 1,479 18,131 - 18,131 8,021 - 8,021 34,868 2,781 32,087 144,504 18,144 126,360 $ 207,539 $ 21,175 $ 186,364 Page 5 of 5 EXHIBIT III V $ 64,648 $ 25,319 $ 89,967 Total Principal Interest Past Due $ 285 $ 28 $ 313 1,230 174 1,404 18,131 7,933 26,064 8,021 3,680 11,701 389 102 491 36,591 13,402 49,993 $ 64,648 $ 25,319 $ 89,967