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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 2 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