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Home My WebLink About02/19/2019 06D 4th Quarter 2018 Accounts Receivable Status Report to\'4\lyy tbxk ik 1 PP1-:4P PPP g. A P p P 1 PPi ittYlltYlt.\ta. BUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDA STATEM ENT Item No. 6.D. For Meeting of: February 19, 2019 ITEM TITLE: 4th Quarter 2018 Accounts Receivable Status Report SUBMITTED BY: Steve Groom, Director of Finance & Budget SUMMARY EXPLANATION: This report provides an update on all non-utility accounts receivable balances billed centrally, 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 II -- Gambling Delinquency Detail • Exhibit III -- Local Improvement District (LID) Receivables The outstanding balance of recurring receivables billed through Central Billing as of December 31, 2018 is $1,037,622 which includes $1,016,998 for General receivables and $20,624 for Gambling Taxes. The outstanding balance as of 2017 was $638,802; the 2018 increase is largely simply timing of payments for intergovernmental fire charges from other cities. The outstanding balance for Installment Accounts that have been billed as of December 31, 2018 is $142,955 for LID Assessments. The outstanding balance as of 2017 was $185,730. Staff bills monthly, quarterly or annually, depending on the nature of the service, and collects, reports and follows up accordingly. The Utility Services Manager reviews balances, processes and any exceptions monthly with the Director of Finance and Budget. As the attached report describes, different categories of accounts receivable have different collection requirements. ITEM BUDGETED: NA STRATEGIC PRIORITY: Public Trust and Accountability 2 APPROVED FOR City Manager SUBMITTAL: STAFF RECOMMENDATION: Accept Report BOARD/COMMITTEE RECOMMENDATION: ATTACHMENTS: Description Upload Date Type 6 4th QuarterANR Staff Ft rxxt 1/31/2019 Co'er Memo 3 City of Yakima FINANCE DEPARTMENT STAFF REPORT February 19,2019 SUBJECT: Accounts Receivable Status Report 4th Quarter 2018 SUBMITTED BY: Finance Department CONTACT PERSON: Steve Groom, Director of Finance & Budget The Accounts Receivable Status Report presents the status of General and Installment Accounts Receivable as of December 31, 2018 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, 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 $17,737 in the collection column is for 95 accounts. Quarterly Charges—The$10,588 in the collection column is for 25 accounts. Fire Inspections—This new revenue source began in January, 2017. There are 346 accounts in collection for a total of$47,974. Front Street Business Improvement Assessment(FSBI) —A total of 13 accounts are in collection, totaling$4,603. Fruitvale Canal Billing—There is a separate irrigation fee for customers connected directly to the Fruitvale Canal. 50 accounts are billed annually. The $100 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$11,445 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 $4,136 in the collection column is for nine accounts. Airport—The majority of the $2,744 the collection column is for one vendor at the Airport, which is for a delinquent lease in the amount of$2,285, 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 $27,879 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 $242,978 in gambling tax revenue, year to date, this represents a decrease of 4.4%, as the budgeted amount for the year is $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$4,905 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 $81,035. When accumulated interest of $27,890 is added, the total amount past due is $108,925. Page 3 of 5 EXHIBIT I CENTRAL BILLING ACCOUNTS RECEIVABLE (as of December 31,2018) GENERAL ACCOUNTS Approximate Quarterly Activity Status Billings Beginning New Inv Payments/ Ending Current to Over Over Recurring Receivables M Q A Balance Billed Write-offs Balance 90 Days 90 Days 120 Days Collection Legal Downtown Yak Bus Impr Dist Annual(DYBIDA) - - 280 $ 20,612 $ - $ 1,775 $ 18,837 $ - $ - $ 1,100 $ 17,737 $ - Quarterly(DYBID) - 265 - 22,953 33,052 33,287 22,718 1,867 - 10,264 10,588 - Fire Inspections - 425 - 89,166 39,220 31,002 97,384 24,745 10,550 14,115 47,974 - Front Street Business Impr(PSBI) - 25 - 5,603 1,134 650 6,087 634 - 850 4,603 - PruitvaleCanalBilling(PC) - - 50 125 - - 125 - - 25 100 - Miscellaneous 110 - - 22,418 48,621 51,674 19,364 6,924 - 995 11,445 - Intergovernmental 525 20 30 435,089 894,184 882,365 446,908 37,560 397,886 11,463 - - Traffic Eng./Engineering 3 - - 1,570 150 200 1,520 100 100 1,320 - - Parks&Recreation(WEED) 10 - - 4,161 21,882 10,490 15,553 11,392 - 25 4,136 - Airport 400 - - 28,267 177,371 171,591 34,048 22,736 94 5,859 2,744 2,615 Water/W W Invoice&Connections City of Yakima 90 - 5 219,505 596,605 571,970 244,140 124,113 10,850 81,299 27,879 - Terrace Heights/Union Gap 4 4 1 135 493 346 809 371,990 110 313 110 313 - - - - Sub-total Receivables 1,142 739 366 984,962 2,159,028 2,126,992 1,016,998 340,382 419,480 127,315 127,207 2,615 Gambling Tax - 20 - 21,424 242,978 243,778 20,624 - - - 15,719 4,905 Total 1142 759 366 $1,006,386 $2,402,006 $2,370,770 $1,037,622 $ 340,382 $419,480 $127,315 $142,926 $ 7,520 INSTALLMENT ACCOUNTS 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 $ 145,187 $ 2,232 $ - $ 2,232 $142,955 $ 81,035 $ 27,890 $ 108,925 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 December 31,2018) 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) 5 Brews&Cues(1st-4th Qtr 15) 4,900 4,905 Total $ 20,624 EXHIBIT III LID ASSESSMENT RECEIVABLES (as of December 31,2018) Quarterly Principal Activity Delinquent #of Beginning Ending Total LID#-Description Accts Balance Payments Balance Principal Interest Past Due 1052-Willow Area Watermain 1 $ 286 $ - $ 286 $ 285 $ 28 $ 313 1056-S.7th,8th,&9th Avenue Sewer 1 1,229 - 1,229 1,230 174 1,404 1057-N.84th Avenue&Hawthorne Drive Sewer 3 18,131 - 18,131 18,131 7,933 26,064 1058-N.95th Avenue,94th Place,W.Yakima Avenue Sewer 2 8,021 - 8,021 8,021 3,680 11,701 1060-N.85th Avenue&Kail Drive Sewer 6 16,035 410 15,625 772 204 976 1061 -Simpson Lane Sewer 45 101,485 1,822 99,663 52,596 15,871 68,467 Total 58 $ 145,187 $ 2,232 $ 142,955 $ 81,035 $ 27,890 $ 108,925 Page 5 of 5