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Home My WebLink About08/21/2018 06C 2nd Quarter 2018 Accounts Receivable Status ReportITEM TITLE: SUBMITTED BY: BUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDASTATEMENT 1 Item No. 6.C. For Meeting of: August 21, 2018 2nd Quarter 2018 Accounts Receivable Status Report Tara Lewis, Financial Services Manager 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, 2018 is $1,041,044 which includes $1,019,020 for General Receivables and $22,024 for Gambling Taxes. The outstanding balance for Installment Accounts that have been billed as of June 30, 2018 is $82,349 for LID 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 Type 2 2nd Qtr 2018 AR Report 7/18/2018 Coker Memo 3 City of Yakima FINANCE DEPARTMENT STAFF REPORT August 21, 2018 SUBJECT: Accounts Receivable Status Report 2nd Quarter 2018 SUBMITTED BY: Finance Department CONTACT PERSON: Tara Lewis, Financial Services Manager The Accounts Receivable Status Report presents the status of General and Installment Accounts Receivable as of June 30, 2018 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, 2018. 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 $18,987 in the collection column is for 99 accounts. Quarterly Charges — The $9,091 in the collection column is for 24 accounts. Fire Inspections — This new revenue source began in January, 2017. There are 241 accounts in collection for a total of $22,195. Front Street Business Improvement Assessment (FSBI) — A total of 13 accounts are in collection, totaling $3,702. 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 $10,694 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 for one vendor at the Airport, which is for a delinquent lease in the amount of $1,371, with further charges pending. There is only on other vendor in collection for the Airport at this time. The $2,615 in the legal column pertains to a land lease that is outstanding. The Water/Wastewater Invoices and Connections — The $29,938 in collection is for 20 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 $266,525 in gambling tax revenue, which represents a decrease of 0.5% under the budgeted amount of $1,033,379. 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 $6,305 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 $82,349. When accumulated interest of $28,315 is added, the total amount past due is $110,664. Page 3 of 5 Recurring Receivables CENTRAL BILLING ACCOUNTS RECEIVABLE (as of June 30, 2018) 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) - $ 31,081 $ - $ 10,144 $ 20,937 Quarterly (DYBID) - 265 22,255 33,049 33,662 21,643 Fire Inspections - 425 41,589 79,340 54,241 66,688 Front Street Business Impr (FSBI) - 25 - 6,036 1,134 2,016 5,153 Fruitvale Canal Billing (FC) - 50 575 2,985 2,285 1,275 Miscellaneous 110 - - 17,208 30,098 25,620 21,687 Intergovernmental 525 20 30 424,975 920,395 922,056 423,314 Traffic Eng./ Engineering 3 - - 2,142 706 1,277 1,570 Parks & Recreation (WEED) 10 - - 5,343 13,108 14,543 3,909 Airport 400 - - 29,632 170,269 175,402 24,499 Water/WW Invoice & Connections City of Yakima 90 - 5 131,062 505,166 334,523 301,704 Terrace Heights/Union Gap 4 4 1 112,981 356,856 343,197 126,640 Sub -total Receivables 1,142 739 366 824,879 2,113,107 1,918,966 1,019,020 Gambling Tax - 20 - 22,774 266,526 267,276 22,024 Total 1,142 759 366 $ 847,653 $2,379,632 $2,186,242 $1,041,044 Installment Receivables INSTALLMENT ACCOUNTS $ - $ 300 $ 1,650 $ 18,987 $ 2,508 0 10,044 9,091 39,070 3,185 2,239 22,195 434 1,018 3,702 700 500 75 6,946 4,046 10,694 422,162 100 1,052 150 1,420 25 3,884 15,840 1,117 3,198 1,729 2,615 248,179 23,587 29,938 126,640 862,655 4,702 48,754 100,295 2,615 15,719 6,305 $ 862,655 $ 4,702 $ 48,754 $ 116,014 $ 8,920 Approximate Original Beginning Quarterly Activity Ending Delinquent Billings Principal Prinicpal Total Principal Interest & Total M Q A Balance Balance Principal Interest Payments Balance Principal Penalties Past Due LID Assessments 175 $1,773,787 $ 151,614 $ 6,051 $ - $ 6,051 $145,563 $ 82,349 $ 28,315 $ 110,664 Legend: M = Monthly Q = Quarterly A = Annually Note: Amounts shown net of prepayments Page 4 of 5 EXHIBIT II SUMMARY OF GAMBLING TAX DELINQUENCY (as of June 30, 2018) 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) 1,405 Brews & Cues (1st - 4th Qtr 15) 4,900 6,305 Total $ 22,024 LID ASSESSMENT RECEIVABLES (as of June 30, 2018) # 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 $ - $ 286 1,229 - 1,229 18,131 - 18,131 8,021 - 8,021 21,423 5,074 16,349 102,524 977 101,547 $ 151,614 $ 6,051 $ 145,563 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 11,701 201 39 240 54,481 16,461 70,942 $ 82,349 $ 28,315 $ 110,664