HomeMy WebLinkAbout04/17/2018 06C 4th Quarter 2017 Accounts Receivable Status ReportBUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
AGENDA STATEMENT
1
Item No. 6.C.
For Meeting of: April 17, 2018
ITEM TITLE: 4th 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 December
31, 2017 is $638,802 which includes $615,228 for General receivables and $23,574 for
Gambling Taxes. The outstanding balance for Installment Accounts that have been billed as of
December 31, 2017 is $74,209 for LID Assessments.
ITEM BUDGETED:
NA
STRATEGIC PRIORITY: Public Trust and Accountability
APPROVED FOR
SUBMITTAL:
City Manager
STAFF RECOMMENDATION:
Accept Report
BOARD/COMMITTEE RECOMMENDATION:
ATTACHMENTS:
Description Upload Date
0 4th Qtr 2017 NR Report 4/10/2018
Type
Cover Memo
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3
City of Yakima
FINANCE DEPARTMENT
STAFF REPORT
April 12, 2018
SUBJECT: Accounts Receivable Status Report
Year-end/4th Quarter 2017
SUBMITTED BY: Finance Department
CONTACT PERSON: Danny Agsalog, Director of Finance & Budget
The Accounts Receivable Status Report presents the status of General and Installment Accounts
Receivable as of December 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 December 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 $14,006 in the collection column is for 80 accounts.
Quarterly Charges - The $8,748 in the collection column is for 21 accounts.
Fire Alarm Monitor (FAM) - There are no items in collection in this category as of the 4th quarter.
Fire Inspections - This new revenue source began in January, 2017. There are 148 accounts in
collection for a total of $11,550.
Front Street Business Improvement Assessment (FSBI) - A total of 11 accounts are in collection,
totaling $2,718.
Fruitvale Canal Billing - There is a separate irrigation fee for customers connected directly to the
Fruitvale Canal. 50 accounts are billed annually. The $75 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 $10,544 in the collection column represents 30 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.
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 $3,884 in the collection column is for nine accounts.
Airport
The majority of the $1,729 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 $30,932 in collection is for 21
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 $231,566 in gambling tax revenue, for a year-end total of $987,543,
which represents an increase of 1.8% over the budgeted 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 $7,855 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 $74,209. When accumulated interest of
$26,908 is added, the total amount past due is $101,117.
Page 3 of 5
Recurring Receivables
CENTRAL BILLING ACCOUNTS RECEIVABLE
(as of December 31, 2017)
Approximate
Billings
M Q A
GENERAL ACCOUNTS
Quarterly Activity
Status
EXHIBIT I
Beginning New Inv Payments/
Balance Billed Write-offs
Ending
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
3
10
400
90 -
4 4
20 30
$ 20,996 $
20,131
30
44,714
5,621
600
22,563
348,860
6,198
6,513
42,831
5 161,281
1 128,808
1,142 739 366 809,146
- 20 - 24,174
1,142 759 366 $ 833,320
Approximate
Billings
M Q
LID Assessments
Legend: M = Monthly Q = Quarterly A= Annually
33,678
28,090
1,034
231,166
829,956
2,469
13,288
128,543
466,403
390,763
2,125,389
231,566
$2,356,955
$ 1,790
35,093
30
39,923
803
25
225,404
1,026,755
6,219
2,629
151,445
$ 19,206
18,716
32,881
5,852
575
28,325
152,061
2,448
17,172
19,928
489,260 138,424
339,932 179,639
2,319,308 615,228
232,166 23,574
$2,551,474 $ 638,802
INSTALLMENT ACCOUNTS
$ - $
1,495
13,169
784
10,149
145,928
978
13,288
14,925
- $ 5,200 $ 14,006 $
- 8,473 8,748
2,540 5,622 11,550
2,350 2,718
500 75
7,632 10,544
3,500 2,633
50 1,420
3,884
223 437 1,729 2,615
45,074 5,179 57,239 30,932
179,639
425,427 11,492 91,507 84,187 2,615
- - 15,719 7,855
$ 425,427 $ 11,492 $ 91,507 $ 99,906 $ 10,470
Original Beginning Quarterly Activity
Principal Prinicpal Total Principal Interest & Total
A Balance Balance Principal Interest Payments Balance Principal Penalties Past Due
175 $1,773,787 $ 186,364 n/a n/a $ 634 $185,730 $ 74,209 $ 26,908 $ 101,117
Ending Delinquent
Page 4 of 5
EXHIBIT II
SUMMARY OF GAMBLING TAX DELINQUENCY
(as of December 31, 2017)
Account(s) sent to Collection:
Michael's Tavern (1st - 4th Qtr 13)
Michael's Tavern (1st - 2nd Qtr 14)
$ 11,938
3,781
15,719
Account currently at with payment arrangements per Legal:
Brews & Cues (1st - 4th Qtr 14) 2,955
Brews & Cues (1st - 4th Qtr 15) 4,900
7,855
Total $ 23,574
LID ASSESSMENT RECEIVABLES
(as of December 31, 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
23,208
123,327
- $ 286
- 1,229
- 18,131
- 8,021
119 23,089
515 122,812
$ 174,202 $ 634 $ 173,568
Page 5 of 5
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
46,542 15,093 61,635
$ 74,209 $ 26,908 $ 101,117