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Home My WebLink About08/05/2019 06C 2nd Quarter 2019 Accounts Receivable Report to\'4\lyy tbxk ik 1 PP1-:4P PPP g. A ittYlltYlt.\ta. BUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDA STATEM ENT Item No. 6.C. For Meeting of:August 5, 2019 ITEM TITLE: 2019 2nd Quarter Accounts Receivable Status Report SUBMITTED BY: Steve Groom, Director of Finance and 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 II -- Gambling Delinquency Detail • Exhibit III -- Local Improvement District (LID) Receivables The outstanding balance of recurring receivables were billed through Central Billing as of 6/30/19. ITEM BUDGETED: NA STRATEGIC PRIORITY: Public Trust and Accountability if APPROVED FOR SUBMITTAL: ilerCity Manager STAFF RECOMMENDATION: Review only. Submitted for routine transparency and accountability. BOARD/COMMITTEE RECOMMENDATION: ATTACHMENTS: Description Upload Date Type E 2 19 2nd tr Accou its ble Deport 7/1 / 019 eep Material 2 R . r� FINANCE DEPARTMENT l$r To: Mayor and City Council Cliff Moore,City Manager From: Steve Groom,Finance Department Kathy Miles,Financial Services Date: August 5,2019 Subject: Accounts Receivable Status Report-2nd Quarter 2019 This report presents the status of general receivables (non-utility billing) accounts as of June 30,2019 that are billed centrally by the Finance Department. The report that follows summarizes activity and balances of general accounts and Local Improvement District (LID) assessment accounts. Summary • Total general accounts ending balance decreased by$25,100 or 2.6%from prior quarter. Accounts in collection total$160,089,or 17.3%of total ending balance. • Total LID accounts ending balance decreased by$42,204 or 33.2%from prior quarter. • The collections process is managed continuously and reviewed monthly • Past due accounts are placed monthly with the city's collection agency Collection Processes Collection requirements vary between types of billing. For example,the City uses a collection agency to collect significantly past due accounts in categories such as traffic,miscellaneous,and parks,whereas unpaid sewer contracts become a lien against the real property. Collection activity of delinquent LID accounts are coordinated with the City's legal department. Accounts are sent to the City's collection agency when the balance is more than 90 days past due. After collection efforts are exhausted, uncollectible accounts are reported annually to the City Council for write-off approval. 2019 Accounts Receivable Quarterly Report-1 3 RECURRING RECEIVABLES DETAIL Exhibit I Downtown Yakima Business Improvement District-Annually/Quarterly(DYBID) DYBID funds provide downtown services including deaning,maintenance,landscaping,safety and business development activities. There are two types of billings, quarterly to all property/business owners and annual billings to all individual businesses: Annual Charges-The $16,487 in the collection column is for 87 accounts. Quarterly Charges-The$9,143 in the collection column is for 21 accounts. Fire Inspections The Fire Department is currently doing about 500 inspections and compliance re-inspections per month; there are currently 334 accounts in collection for a total of$50,359. Front Sheet Business Improvement Assessment(FSBI) Originally created in 2006,this program was created for the purpose of assisting trade,economic viability and livability within the FSBI area. A total of 13 accounts are in collection,totaling$3,303. Fruitvale Canal Billing A separate irrigation fee for customers connected directly to the Fruitvale Canal,which is not owned by the City. The City buys water through shares to serve City customers. There are 50 accounts billed annually. A total of 2 accounts are in collection,totaling$100. Miscellaneous Billing Recurring billings in this category include transit bus passes for non-governmental entities,refuse charges,rents and retiree premiums for health benefits. A total of 30 accounts are in collection, totaling $11,445,primarily for Police event services and 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. Generally considered collectible,balances are normally only a result of the timing of payments. 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. A total of 9 accounts are in collection totaling$4,136. Airport The majority of the$2,795 the collection column is for two vendors. Most of these charges are for a delinquent lease,which is still incurring charges. The City continues to seek resolution. The$2,615 in the legal column pertains to a land lease that the cities Legal department is looking into. The Water/Wastewater Invoices and Connections A total of 22 accounts are in collection,totaling$46,600,mainly for Wastewater pretreatment and strong water fees,Water permits and Water and Wastewater equipment. 2019 Accounts Receivable Quarterly Report-2 4 GAMBLING TAX DETAIL Exhibit II Gambling Tax The power to impose a Gambling Tax was adopted by ordinance in the City of Yakima in 1974. The largest part of these taxes come from card games, with Punch boards,pull tabs and amusement games making up for the rest. This quarter the City received $265,306 in gambling tax revenue,year to date,this represents 24.3% of the budgeted amount for the year($1,050,690),a decrease of 0.7%. Gambling Tax Delinquencies Exhibit II details the status of delinquent gambling tax accounts. The beginning and ending balances are primarily comprised of two delinquent accounts. One,totaling$15,719,has been sent to collection and the second,totaling$4,055,is making payments,coordinating with the City's Legal Department. The City informs the Gambling Commission of the status of these accounts and keeps them informed of any changes to further any collection efforts. According to RCW 9.46.070,the Gambling Commission has the authority to revoke or suspend a gambling licenses for violation of any provisions of the rules and regulations adopted in the code. LID ASSESSMENT DETAIL Exhibit III Local Improvement District(LID) LID assessments are generally for improvements made to a parcel related to the Wastewater system. There are currently six LIDs that the City is collecting assessments on,improvements all done previous to 2009. Delinquent amounts are unpaid installments for prior years plus interest. At of the end of the quarter,the delinquent principal balance is$57,440. When accumulated interest ($36,755) and penalties ($47,060) are added,the total amount past due is$141,255. The City's Legal Department is involved with collection efforts. 2019 Accounts Receivable Quarterly Report-3 RECURRING RECEIVABLES SUMMARY Exhibit I Approximate 2nd Quarter Activity Status Billings Beginning New Inv Payments/ Ending Current- Over Over Recurring Receivables Detail M Q A Balance Billed Write-offs Balance 90 Days 90 Days 120 Days Collection Legal Downtown Yak Bus Imp Dist Annual(DYBIDA) 280 $ 28,913 $ $ 6,426 $ 22,487 $ $ $ 6,000 $ 16,487 $ Quarterly(DYBID) 700 24,261 34,857 30,779 28,339 4,473 14,723 9,143 Fire Inspections 500 102,253 54,025 46,790 109,488 25,675 5,645 27,809 50,359 Front St Business Impr(PSBI) 60 5,421 134 1,150 4,405 384 718 3,303 Pruitvale Canal Billing(FC) 100 125 2,985 2,725 385 260 25 100 Miscellaneous 75 44,068 35,360 55,180 24,248 10,516 2,286 11,445 Intergovernmental 350 25 35 453,314 935,467 898,311 490,470 459,165 12,035 19,270 Traffic Eng./Engineering 5 1,520 307,150 307,150 1,520 150 50 1,320 Parks&Recreation(WEED) 20 5 5,998 10,467 7,151 9,314 3,316 1,862 4,136 Airport 280 41,984 181,044 173,906 49,122 33,725 1,107 8,881 2,795 2,615 Water/WW Inv&Connections City of Yakima 90 10 162,052 241,969 237,803 166,218 87,855 31,763 46,600 Terrace Heights/Union Gap 5 60,687 352,715 413,402 Sub-total Receivables 1,305 805 430 930,596 2,156,173 2,180,773 905,996 625,519 18,837 114,657 144,368 2,615 Gambling Tax 12 20,274 265,306 265,806 19,774 15,719 4,055 Total 1,305 817 430 $ 950,870 $ 2,421,479 $ 2,446,579 $ 925,770 $ 625,519 $ 18,837 $ 114,657 $ 160,087 $ 6,670 Approximate Original Beg 2nd Quarter Activity Ending Delinquent Billings Principal Principal Total Principal Interest& Total Installment Receivables M Q A Balance Balance Principal Interest Payments Balance Principal Penalties Past Due LID Assessments 60 $ 1,773,787 $ 127,122 $ 42,204 $ $ 42,204 $ 84,918 $ 57,440 $ 83,815 $ 141,255 Legend: M=Monthly Q=Quarterly A=Annually Note:Amounts shown net of prepayments 2019 Accounts Receivable Quarterly Report-4 GAMBLING TAX DETAIL Exhibit II 1st Quarter Account(s)sent to Collection: Balance Michael's Tavern(1st-4th Qtr 13) $ 11,938 Michael's Tavern(1st-2nd Qtr 14) 3,781 15,719 Account(s)with payment arrangements set up by Legal: Brews&Cues(1st-4th Qtr 14) 4,055 Total $ 19,774 LID ASSESSMENT DETAIL Exhibit III 2nd Quarter Activity Delinquent #of Beginning Ending Total LID#-Description Accts Balance Payments Balance Principal Interest Penalties Past Due 1052-Willow Area Water Main 1 $ 286 $ 286 $ 285 $ 390 $ 489 $ 1,164 1056-S.7th,8th,&9th Avenue Sewer 682 682 1057-N. 84th Avenue&Hawthorne Drive Sewer 3 18,131 18,131 18,131 17,955 24,759 60,845 1058-N. 95th Avenue,94th Place,W.Yakima Avenue Sewer 1 8,021 3,900 4,121 4,121 3,967 5,304 13,392 1060-N. 85th Avenue&Kail Drive Sewer 4 15,177 8,696 6,481 1061-Simpson Lane Sewer 38 84,826 28,926 55,900 34,903 14,443 16,508 65,854 Total 47 $ 127,123 $ 42,204 $ 84,919 $ 57,440 $ 36,755 $ 47,060 $ 141,255 2019 Accounts Receivable Quarterly Report-5