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11/05/2019 06B 3rd Quarter 2019 Accounts Receivable Report 't..an,gtntj ka d E$A aY BUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDA STATEMENT Item No. 6.B. For Meeting of: November 5, 2019 ITEM TITLE: 2019 3rd 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 Enterprise and Central billing billing and collections during the quarter.) • Exhibit II -- Gambling Delinquency Detail • Exhibit III -- Local Improvement District (LID) Receivables ITEM BUDGETED: NA STRATEGIC PRIORITY: Public Trust and Accountability mm APPROVED FOR , InterimCityManager SUBMITTAL: STAFF RECOMMENDATION: Review only. Submitted for routine transparency and accountability. BOARD/COMMITTEE RECOMMENDATION: ATTACHMENTS: Description Upload Date Type D201 3rd{ darter R el ble 10/ 5/2019 ( r Mama 2 f1, , �+'1 FINANCE DEPARTMENT �._,. To: Mayor and City Council Cynthia Martinez,Interim City Manager From: Steve Groom,Finance Department Kathy Miles,Financial Services Date: November 5,2019 Subject: Accounts Receivable Status Report-3rd Quarter 2019 This report presents the status of receivables that are billed centrally by the Finance Department and now includes enterprise fund Utility Billing revenues-Water,Wastewater,Refuse and Irrigation-as of September 30,2019. The purpose of this report is to provide transparency and accountability to confirm budgeted revenues were billed and are being followed up responsibly to assure collection. Summary • Total Utility Billing revenue for the month was$12,065,750. • Total Utility Billing accounts ending balance increased by$392,913 or 8.0%from prior quarter, partially due to seasonal usage. • Total General Billing accounts ending balance increased by$293,228 or 31.7%from prior quarter. • Accounts in collection total$167,065,or 13.7%of total ending balance. • Total LID accounts ending balance decreased by$4,317 or 5.1%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. Collection of Utility Billing accounts involves communication with customers,following up with reminders and potentially cutting off service for non- payment. Payments can be made through automatic debit,on-line, drop-box or in person at City Hall. 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. 3 GENERAL 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 $16,387 in the collection column is for 87 accounts. Quarterly Charges-The$9,093 in the collection column is for 20 accounts. Fire Inspections The Fire Department is currently doing about 500 inspections and compliance re-inspections per month; there are currently 382 accounts in collection for a total of$57,189. 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 8 accounts are in collection,totaling$275. 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$2,998 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$46,519,mainly for Wastewater pretreatment and strong water fees,Water permits and Water and Wastewater equipment. 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 $252,903 in gambling tax revenue,added to the first two quarters, this represents 73.6%of the budgeted amount for the year($1,050,690),currently a decrease of 1.4%for the year. 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$2,905,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$56,189. When accumulated interest ($35,562) and penalties ($45,608) are added,the total amount past due is$137,359. The City's Legal Department is involved with collection efforts. RECURRING RECEIVABLES SUMMARY Exhibit I Quarterly Activity Status Beginning Payments/ Ending Current to Over Over Enterprise Receivables Balance Billed Write-offs Balance 90 Days 90 Days 120 Days Collection Legal Wastewater $ 2,300,541 $ 5,590,868 $ 5,342,593 $ 2,548,816 $ 1,259,974 $ 37,220 $ 1,251,622 $ $ Water 1,141,898 3,516,167 3,411,289 1,246,775 774,287 8,943 463,545 Refuse 972,114 2,080,239 2,113,542 938,812 394,012 19,708 525,091 Irrigation 477,625 878,476 805,413 550,688 292,508 11,998 246,182 Total Enterprise Receivables $ 4,892,178 $ 12,065,750 $ 11,672,837 $ 5,285,091 $ 2,720,781 $ 77,869 $ 2,486,440 $ $ Central Billing Receivables Downtown Yak Bus Impr Dist Annual(DYBIDA) $ 22,487 $ $ 300 $ 22,187 $ $ $ 5,800 $ 16,387 $ Quarterly(DYBID) 28,339 34,647 31,260 31,726 4,359 18,274 9,093 Fire Inspections 109,488 63,701 56,228 116,961 31,747 3,200 24,825 57,189 Front Street Business Impr(PSBI) 4,405 1,084 700 4,788 434 1,051 3,303 Fruitvale Canal Billing(FC) 385 25 360 85 275 Miscellaneous 24,248 31,059 30,814 24,493 6,185 6,863 11,445 Intergovernmental 490,470 689,323 650,378 529,415 480,415 6,515 42,485 Traffic Eng./Engineering 1,520 150 150 1,520 150 50 1,320 Parks&Recreation(WEED) 9,314 292 3,306 6,299 292 1,871 4,136 Airport 49,122 193,417 179,899 62,640 44,320 5,933 6,775 2,998 2,615 Gambling 19,774 1,150 18,624 15,719 2,905 Water/WW Invoice&Connections City of Yakima 166,218 576,931 469,178 273,971 203,865 23,587 46,519 Terrace Heights/Union Gap 367,452 241,438 126,014 126,014 Total Central Billing Receivables $ 925,770 $ 1,958,056 $ 1,664,826 $ 1,218,998 $ 897,781 $ 15,698 $ 132,936 $ 167,064 $ 5,520 Original Beginning Quarterly Activity Ending Delinquent Principal Principal Total Principal Interest& Total Installmment Receivables Balance Balance Principal Interest Payments Balance Principal Penalties Past Due LID Assessments $ 1,773,787 $ 84,918 $ 4,317 $ $ 4,317 $ 80,601 $ 56,189 $ 81,170 $ 137,359 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) 2,905 Total $ 18,624 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 $ 362 $ 489 $ 1,136 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 4,121 4,121 4,121 3,967 5,304 13,392 1060-N. 85th Avenue&Kail Drive Sewer 4 6,481 6,481 1,296 136 1,432 1061-Simpson Lane Sewer 38 55,900 4,317 51,583 32,356 13,142 15,056 60,554 Total 47 $ 84,919 $ 4,317 $ 80,602 $ 56,189 $ 35,562 $ 45,608 $ 137,359