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Home My WebLink About11/21/2017 06B 3rd Quarter 2017 Accounts Receivable Status ReportBUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDA STATEMENT 1 Item No. 6.B. For Meeting of: November 21, 2017 ITEM TITLE: 3rd Quarter 2017 Accounts Receivable Status Report SUBMITTED BY: DannyAgsalog, 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 September 30, 2017 is $1,233,321 which includes $1,209,147 for General Receivables and $24,174 for Gambling Taxes. The outstanding balance for Installment Accounts that have been billed as of September 30, 2017 is $74,670 for LI D Assessments. ITEM BUDGETED: STRATEGIC PRIORITY: Public Trust and Accountability APPROVED FOR SUBMITTAL: City Manager STAFF RECOMMENDATION: Accept Report BOARD/COMMITTEE RECOMMENDATION: ATTACHMENTS: Description Upload Date 0 3rd Quarter AR Repot 11/8/2017 Type Co\kr Memo 2 3 City of Yakima FINANCE DEPARTMENT STAFF REPORT November 16, 2017 SUBJECT: Accounts Receivable Status Report 3rd Quarter 2017 SUBMITTED BY: Finance Department CONTACT PERSON: Danny Agsalog, Director of Finance and Budget The Accounts Receivable Status Report presents the status of General and Installment Accounts Receivable as of September 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 September 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 4 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 $13,796 in the collection column is for 71 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 9 accounts are in collection, totaling $2,469. 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 $2,615 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 5 Gambling Tax This quarter the City received $234,969 in gambling tax revenue, which, with first and second quarter receipts, represents 77.9% 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 $8,455 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 CENTRAL BILLING ACCOUNTS RECEIVABLE (as of September 30, 2017) Approximate Billings M Q A GENERAL ACCOUNTS Quarterly Activity Status EXHIBIT I Beginning New Inv Payments/ Ending Balance Billed Write-offs Balance Current to Over Over 90 Days 90 Days 120 Days Collection Legal 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 Installment Receivables - 280 265 425 25 50 110 - - 525 20 30 3 10 400 90 4 1,142 5 4 1 739 366 20 1,142 759 366 Approximate Billings M Q $ 23,586 $ $ 2,590 $ 20,996 $ - $ 21,841 33,414 35,123 20,131 2,694 30 - - 30 - 23,127 83,772 62,185 44,714 36,372 5,388 1,084 851 5,621 584 675 - 75 600 - 421,288 42,083 40,808 422,563 4,216 387,154 656,087 694,381 348,860 323,901 1,670 6,690 2,163 6,198 4,678 4,988 1,525 1 6,513 1,525 49,317 153,898 160,383 42,831 36,409 257,313 274,890 370,922 161,281 73,948 78,665 396,280 346,137 128,808 128,808 1,275,042 1,649,723 1,715,618 1,209,147 613,136 24,774 234,969 235,569 24,174 $1,299,816 $1,884,692 $1,951,187 $1,233,321 INSTALLMENT ACCOUNTS - $ 7,200 $ 13,796 $ 8,689 8,748 30 770 7,572 2,569 2,469 550 50 407,730 10,617 24,959 50 1,470 1,064 3,924 386 1,337 2,084 43,326 22,855 21,152 2,615 44,532 485,995 62,869 2,615 15,719 8,455 $ 613,136 $ 44,532 $485,995 $ 78,588 $ 11,070 Original Beginning Quarterly Activity Principal Prinicpal A Balance Balance Principal LID Assessments Legend: M = Monthly Q = Quarterly A = Annually 175 $1,773,787 $ 186,364 n/a Page 4 of 5 Ending Delinquent Total Principal Interest & Total Interest Payments Balance Principal Penalties Past Due n/a $ 530 $185,834 $ 74,670 $ 27,195 $ 101,865 EXHIBIT II SUMMARY OF GAMBLING TAX DELINQUENCY (as of September 30, 2017) Account(s) sent to Collection: Michael's Tavern (1st - 4th Qtr 13) 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) $ 11,938 3,781 15,719 3,555 4,900 8,455 Total $ 24,174 LID ASSESSMENT RECEIVABLES (as of September 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 58 Quarterly Principal Activity Delinquent EXHIBIT III Beginning Ending Balance Payments Balance $ 286 $ 1,229 18,131 8,021 23,575 123,490 $ 286 1,229 18,131 8,021 367 23,208 163 123,327 $ 174,733 $ Page 5 of 5 530 $ 174,203 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 47,003 15,380 62,383 $ 74,670 $ 27,195 $ 101,865