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Home My WebLink About08/01/2017 06A 2nd Quarter 2017 Accounts Receivable Status ReportBUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDASTATEMENT Item No. 6.A. For Meeting of: August 1, 2017 ITEM TITLE: 2nd 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 June 30, 2017 is $1,299,816 which includes $1,275,042 for General Receivables and $24,774 for Gambling Taxes. The outstanding balance for Installment Accounts that have been billed as of June 30, 2017 is $74,670 for L I D Assessments. ITEM BUDGETED: STRATEGIC PRIORITY: Public Trust and Accountability APPROVED FORcl*� SUBMITTAL: "'City Manager STAFF RECOMMENDATION: Accept Report BOARD/COMMITTEE RECOMMENDATION: ATTACHMENTS: Description Upload Date Type 2nd Qtr 2017 Accts ReceMble Report 7/1712017 Cceer Memo City of Yakima FINANCE DEPARTMENT STAFF REPORT August 1, 2017 SUBJECT: Accounts Receivable Status Report 2nd 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 June 30, 2017 that are billed through the City's Central Billing office. ACCOUNTS RECEIVABLE Exhibit I contains two charts summarizing activity and balances as of June 30, 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 $14,296 in the collection column is for 76 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 and is currently averaging approximately 425 accounts billed per quarter. As this is a new revenue, there are currently no accounts in collection. 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 $50 in the collection column represents two 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 $10,617 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 $2,084 in the collection column is mainly for one vendor at the Airport, which is for a delinquent lease. The $2,614.52 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 $260,678 in gambling tax revenue, which, with first quarter receipts, represents 53.7% 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 $9,055 has 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 $74,670. When accumulated interest of $27,195 is added, the total amount past due is $101,865. Page 3 of 5 Recurring Receivables Downtown Yak Bus Impr Dist Annual (DYBIDA) Quarterly (DYBID) Fire Alarm Monitor (FAM) Fire Inspections Front Street Business Impr (FSBI) Fruitvale Canal Billing (FC) Miscellaneous Intergovernmental Traffic Eng./ Engineering Parks & Recreation (WEED) Airport Water/WW Invoice & Connections City of Yakima Terrace Heights/Union Gap Sub -total Receivables Gambling Tax Total CENTRAL BILLING ACCOUNTS RECEIVABLE (as of June 30, 2017) Approximate Billings M Q A GENERAL ACCOUNTS Beginning New Inv Payments/ Ending Balance Billed Write-offs Balance - - 280 $ 25,096 $ - 265 - 20,868 - - - 30 - 425 - 19,965 - 25 - 4,954 - - 50 400 110 - - 427,057 525 20 30 433,766 3 - - 1,620 10 - - 8,675 400 - - 49,962 450 $ 1,960 $ 23,586 33,358 32,385 21,841 - - 30 34,407 31,245 23,127 1,084 650 5,388 21985 2,710 675 132,894 138,663 421,288 854,887 901,499 387,154 150 100 1,670 10,848 14,535 4,988 158,739 159,384 49,317 90 - 5 172,725 453,041 368,453 257,313 4 4 1 140,456 431,318 493,108 78,665 1,142 739 366 1,305,574 2,114,160 2,144,692 1,275,042 - 20 - 25,724 260,678 261,628 24,774 1,142 759 366 $1,331,298 $2,374,838 $2,406,320 $1,299,816 INSTALLMENT ACCOUNTS EXHIBIT I Status Current to Over Over 90 Days 90 Days 120 Days Collection Legal $ - $ - $ 9,290 $ 14,296 $ - 3,924 - 9,169 8,748 - - - - 30 - 16,432 6,620 75 - - 634 - 2,135 2,619 - 600 - 25 50 - 2,941 - 407,730 10,617 - 346,745 315 40,094 - - 150 - 1,520 - - - - 1,064 3,924 - 43,299 204 1,116 2,084 2,615 227,931 - 8,230 21,152 - 78,665 - - - - 721,322 7,139 480,448 63,519 2,615 - - - 15,719 9,055 $ 721,322 7139 jkQ 44879 238 L _L170 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 $ 186,364 n/a n/a $ 11,382 $174,982 $ 74,670 $ 27,195 $ 101,865 Legend: M = Monthly Q = Quarterly A = Annually Page 4 of 5 EXHIBIT II SUMMARY OF GAMBLING TAX DELINQUENCY (as of June 30, 2017) Account(s) sent to Collection: Michael's Tavern (1st - 4th Qtr 13) $ 11,938 Michael's Tavern (1st - 2nd Qtr 14) 3,781 15,719 Account currently at with payment arrangements per Legal: Brews & Cues (1st - 4th Qtr 14) 4,155 Brews & Cues (1st - 4th Qtr 15) 4,900 9,055 Total $ 24,774 LID ASSESSMENT RECEIVABLES (as of June 30, 2017) # of LID # - Description Accts 1052 -Willow Area Watermain 1 1056 - S. 7th, 8th, & 9th Avenue Sewer 1 1057 - N. 84th Avenue & Hawthorne Drive Sewer 3 1058 - N. 95th Avenue, 94th Place, W. Yakima Avenue Sewer 2 1060 - N. 85th Avenue & Kail Drive Sewer 6 1061 - Simpson Lane Sewer 45 Total $ 313 58 EXHIBIT III Quarterly Principal Activity Delinquent Beginning Ending Total Balance Payments Balance Principal Interest Past Due $ 285 $ - $ 285 $ 285 $ 28 $ 313 1,229 - 1,229 1,230 174 1,404 18,131 - 18,131 18,131 7,933 26,064 8,021 - 8,021 8,021 3,680 11,701 32,087 8,512 23,575 - - - 126,360 2,870 123,490 47,003 15,380 62,383 $ 186,114 $ 11,382 $ 174,732 $ 74,670 $ 27,195 $ 101,865 Page 5 of 5