HomeMy WebLinkAbout12/14/2010 07A Account Receivabe Status Report - 3rd Quarter 2010 BUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
AGENDA STATEMENT
,
Item No
For Meeting of December 14, 2010
ITEM TITLE Accounts Receivable Status Report — 3rd Quarter 2010
SUBMITTED BY Finance Department
CONTACT PERSON/TELEPHONE. Cindy Eppersn, Dep Director of Acct/Budget, 575 -6070
SUMMARY EXPLANATION
We are respectfully submitting the accounts receivable report as of September 30, 2010
This report lists all accounts receivable balances handled through Central Billing
(Includes Gambling tax, HUD Section 108, SIED Loans, LID's and numerous other misc
receivables )
The report has the following components
• Staff Report.
• Exhibit I -- Central Billing Accounts Receivable Summary
(Includes total amounts billed and collected during the quarter )
• Exhibit II -- Gambling Delinquency Detail
• Exhibit III -- SIED Loans Summary
• Exhibit IV — Local Improvement District (LID) Receivables
The balance of outstanding Receivables billed through Central Billing as of
September 30, 2010 is Gambling Taxes - $172,739, Section 108 Loans - $9,830, SIED
Loans - $39,869 (including delinquencies of $16,462), LID Assessments $869,723
(including delinquencies of $12,499) Remaining Central Receivables $408,637 for a
grand total of $1,500,798
Resolution Ordinance Other (Specify) Report
Contract Mail to (name and address)
Phone
Funding Source N/A
APPROVED FOR SUBMITTAL
City Manager
STAFF RECOMMENDATION Accept Report.
• BOARD /COMMISSION /COMMITTEE RECOMMENDATION
COUNCIL ACTION
Quarterly A/R Agenda Statement
• City of Yakima
FINANCE DEPARTMENT
STAFF REPORT
December 14, 2010
SUBJECT Accounts Receivable Status Report
3rd Quarter 2010
SUBMITTED BY Finance Department
CONTACT PERSON Cindy Epperson, Deputy Director of Accounting & Budgeting
This report reflects the status of Central Billing Accounts Receivable at September 30, 2010
City's Central Billing Accounts Receivable
A summary of each category (type) of account billed through Central Receivables, by frequency
of billing, the number of customers, the balance at the beginning of the reporting period, the
quarterly activity of billings and payments and the aged receivable balance in each category as of
September 30, 2010, is displayed in Exhibit 1
Each category billed has different collection remedies available. For example, Sewer contracts,
and Local Improvement District assessments which remain unpaid can become a lien against the
real property to which the assessment is associated. Other billing categories, however, such as
traffic, miscellaneous, and parks billings, do not become a lien and in some instances the City
must use a collection agency or other collection action to enforce payment.
On the following pages, a narrative is provided that includes information regarding those
accounts that are more notable in size, aged at least 120 days, have been placed with the
collection agency, are currently being pursued through legal proceedings, or are determined by
the City's collection agency to be uncollectable. If a determination is made by the City's
collection agency that an account is uncollectable, it is normally a result of the account being
beyond the statute of limitations for collection, the agency is unable to locate the party or the firm
has gone bankrupt. At this point, after all collection options are exhausted, an account is
recommended for write -off to City Council. Once an item has been billed it takes Council action
to remove it from our records, (Exception. write -offs of Municipal Court delinquencies are
authorized by the Municipal Court Judges.)
® Downtown Yakima Business Improvement District- Annually /Quarterly (DYBID) - This is an
assessment that became effective September 2008, and replaced the Parking & Business
Page 1 of 3
A/R 3rd Quarter Report
Improvement Assessment (PBIA) There are two types of billings, quarterly to all property /
business owners and annual billings to all individual businesses located in this area. The first
annual charge was billed on 1/29/09
Annual Charges - The $1,800 00 in the "Collection" column represents eighteen accounts.
Quarterly Charges - The $769.32 in the "Collection" column represents six accounts.
Fire Alarm Monitor (FAM) - The $202.50 in the "Collection" column represents two accounts.
Front Street Business Improvement Assessment (FSBI) - The $187.50 in the "Collection" column
represents two accounts.
Fruitvale Canal Billing - There is a separate irrigation fee for customers connected directly to the
Fruitvale Canal, which involves billing 50 accounts annually The $100 00 in the "Collection"
column represents two accounts.
Miscellaneous Billing - The billings under this category are mainly for transit bus passes and
refuse charges. The $6,922.00 in the "Collection" column represents fifty -nine accounts, fifty -six
for refuse bin charges, one for plans, one for lost video equipment and one for claim
reimbursement.
Traffic Engineering / Engineering Billing - The $3,950 in the "Over 120 Days" column represents
one account for sidewalk safety repairs. Payments currently being made on a monthly basis.
Parking and Business Improvement Assessment (PBIA) - The $317 42 in the "Collection" column
represents eighteen charges, which are being pursued by a collection agency on behalf of the
City This PBIA expired in April 2008 and has been replaced by the Downtown Yakima Business
Improvement District.
Parks and Recreation Billing - The $2,016.50 in the "Collection" column represents five
accounts, four are for park use fees and one for building rental.
Police Inmate Medical Reimbursement - In May 1999, the City started billing former inmates for
medical costs incurred while in custody At the Municipal Court study session in January, 2001,
Council determined that performing this billing was not cost effective, and directed that this
billing process be stopped. The 9 remaining accounts which have not yet met the write -off
criteria have a balance of $1,603.56 and are currently in collection.
Section 108 Loans - The $8,240 00 in the "Over 120 Days" column represents annual custodial
fees.
Page 2 of 3
A/R 3rd Quarter Report
Water -Sewer Invoices and Contract - The $28,242.63 in the "Collection" column is for thirty -four
Water /Sewer invoices / contracts and fire hydrant meter charges, damages and utility back
billings sent to collection agency for follow up
Gambling Tax
During the third quarter of 2010, $184,726.41.in gambling tax payments were received for the
second quarter 2010 gambling period. This is 20% of the 2010 budget of $926,000 00
Gambling Tax Delinquencies - Exhibit II details the status of delinquent gambling tax accounts.
The delinquent accounts of two gambling establishments, totaling $11,919.76, have been sent to
collections. A third account owes the City $160,819.30 in past due gambling taxes and penalties.
In July 2008, the City filed a Complaint in Yakima County Superior Court for collection of the
unpaid gambling taxes and penalties against the casino and officers, directors and /or managers.
Per an e -mail notice from the Gambling commission in September 2008, the business surrendered
its gambling license. In May 2009, the casino and one of the individuals filed Chapter 7
bankruptcy and subsequently were discharged by the bankruptcy court. No amounts have been
collected on the debt to date.
The Gambling Commission is aware of these delinquencies and is routinely informed of any
status changes. As soon as a judgment is granted on any establishment, the Gambling
411) Commission can revoke a license.
SIED Loans
Yakima County administers a program entitled Supporting Investment in Economic
Development (SIED) Typically, the City uses this program which offers 1 /z grant and 1 /z loan for
infrastructure improvements, and enters into loan agreements with the companies that benefit
from the improvements, with a 5 -year amortization. As of September 30, 2010, the ending
balance due for the quarter was $16,462.37 Exhibit III summarizes the status of the outstanding
SIED loans.
Local Improvement District (LID)
LID balances, like the SIED loans, are long -term receivables that have annual payments (typically
with a 10 -year amortization schedule) Exhibit IV summarizes the status of outstanding LID
receivables. The amounts considered delinquent are past due, while the amounts considered
current include both the long -term portion of the liability and any balance currently billed, but
not past the due date. As of September 30, 2010, the delinquent balance is $12,498.55 An LID
represents a lien against the property, and State law requires foreclosure after 3 years
assessments are past due. The Finance Department increased collection efforts on delinquent
accounts in 2009 in an attempt to minimize possible foreclosures in the future. Legal is notified
of any delinquency that is over 2 years in arrears.
Page 3 of 3
A/R 3rd Quarter Report
EXHIBIT I
City of Yakima
CENTRAL BILLING ACCOUNTS RECEIVABLE
(as of September 30, 2010)
--------------- 3rd Quarter Activity - - ----
Approximate New
Billings Beginning Invoices Ending Current to Over Over To To
Current M Q A Balance Billed Payments Balance 90 Days 90 Days 120 Days Collection Legal
Downtown Yak Bus Impr Dist
Annual (DYBIDA) - - 418 $ 11,300.00 $ - $ 1,600.00 $ 9,700.00 $ - $ - $ 7,900.00 $ 1,800.00 $ -
Quarterly (DYBID) - 265 - 27,229.58 10,406.42 7,670.01 29,965.99 10,406.42 - 18,790.25 769.32 -
Fire Alarm Monitor (FAM) - 90 - 225.00 67.50 90.00 202.50 67.50 - (67.50) 202.50 -
Front Street Business Impr (FSBI) - 20 - 1,505.00 933.75 250.00 2,188.75 933.75 - 1,067.50 187.50 -
Fruitvale Canal Billing (FC) - - 50 1,100.00 - 750.00 350.00 - - 250.00 100.00 -
Miscellaneous 90 - - 155,787.19 72,838.49 116,360.47 112,265.21 72,838.49 8,170.47 24,334.25 6,922.00 -
Traftic Eng./ Engineering 1 - - 9,426.49 - - 9,426.49 - 5,476.49 3,950.00 - -
Parking & Business Impr Assess (PBIA) - - - 317 42 - - 317 42 - - - 317 42 -
Parks & Recreation (WEED) 15 - - 4,144.93 1,023.00 1,358.43 3,809.50 1,023.00 - 770.00 2,016.50 -
Police Inmate Medical Reimb (IMED) - - - 1,603.56 - - 1,603.56 - - - 1,603.56 -
Section 108 Loans - - 1 8,240.00 1,590.00 - 9,830.00 1,590.00 - 8,240.00 - -
SIED Loans/ Contributions (1) - 3 - 22,163.99 5,701.62 16,462.37 16,462.37 - - - -
Water /Sewer Invoice & Connections
City of Yakima 10 - 2 275,895.13 34,528.06 113,952.98 196,470.21 34,528.06 114,559.17 19,140.35 28,242.63 -
Terrace Heights/Union Gap 6 - - 42,562.81 230,030.58 230,256.49 42,336.90 42,336.56 - 0.34 - -
Sub Totals 122 375 474 539,337.11 373,581.79 477,990.00 434,928.90 180,186.15 128,206.13 84,375.19 42,161.43 -
Gambling Tax 20 173,634.26 183,831.21 184,726.41 172,739.06 - - - 11,919.76 160,819.30
Total 122 395 474 $712,971.37 $557,413.00 $662,716.41 $607,667.96 $180,186.15 $128,206.13 $84,375.19 $54,081.19 $160,819.30
Legend: M = Monthly Q = Quarterly A = Annually
(1) Total outstanding SIED loans at 9/30/10 is $39,869 42.
AR Exhitrtr 12/9/2010 •
• • •
EXHIBIT II
City of Yakima
SUMMARY OF GAMBLING TAX DELINQUENCY
(as of September 30, 2010)
(A) Account(s) Sent to Collection:
410 Restaurant (1st, 2nd & 3rd Qtr 03) $3,837.36
Michael's Tavern (2nd, 3rd & 4th Qtr 08) 8,082.40
Total (Including penalties) 11,919.76
(B) Account(s) Sent to Legal.
Thunderbird Casino (1st, 3rd & 4th Qtr 07) (1) 160,819.30
Total (Including penalties) 160,819.30
Total $172,739.06
(1) Refer to gambling tax narrative on page 3 of this report for further information on this account.
AR Exhibits 3rd Qrtr 12/9/2010
EXHIBIT III
City of Yakiuna
SIED LOANS SUMMARY
(as of September 30, 2010)
Original Beginning ---------- - - - --- Quarterly Activity - -- - - - - -- ----------- -- - - -- Ending
Loan Principal ---- -- Amount Billed (11 --- -- - - -- Payments ---- ---- -- Balance Principal
Acct. # Amount Balance Principal Interest Other Principal Interest Other Amount Balance
Cascade Quality Molding 4594 $44,000.00 $10,299.66 $5,043.91 $432.58 $0.00 $0.00 $0.00 $0.00 $5,476.49 $10,299.66
Cub Crafters 5526 25,000.00 5,465.92 5,465.90 235.72 0.00 5,465.90 235.72 0.00 $0.00 0.02
Yakima Air Terminal 5644 64,500.00 29,569.74 9,322.58 1,663.30 0.00 0.00 0.00 0.00 $10,985.88 29,569.74
Total $133,500.00 $45,335.32 $19,832.39 $2,331.60 $0.00 $5,465.90 $235.72 $0.00 $16,462.37 $39,869 42
(1) Annual loan payments, (i.e., principal and interest) billed late on 6/28/10: Due - (a) Cascade Quality Molding - June 1st; (b) Cub Crafters - April 1st; (c) Yakima Air Terminal - June 1st.
EXHIBIT IV
LID ASSESSMENT RECEIVABLES
(as of September 30, 2010)
Outstanding Principal 3rd Quarter Outstanding Principal
# of --- - - ---- Beginning Balance Principal ------ ---- -- Ending Balance - --
LID # - Description Accts Current Delinquent Total Adds Payments Current Delinquent Total
1049 - N 1st Ave Paving Project 23 $73,905 47 $0.00 $73,905 47 $0.00 $0.00 $73,905 47 $0.00 $73,905 47
1052 - Willow Area Watermain 2 0.00 570.80 570.80 0.00 0.00 0.00 570.80 570.80
1056 - S 7th, 8th , & 9th Ave Sewer 26 72,225.80 5,120.50 77,346.30 0.00 931.00 72,225.80 4,189.50 76,415.30
1057 - N 84th Ave & Hwthrn Dr Sewer 15 58,160.19 4,774.25 62,934.44 0.00 0.00 58,160.19 4,774.25 62,934.44
1058 - N 95th Ave, 94th P1, W Yak Ave Sewer 20 54,728.70 2,964.00 57,692.70 0.00 878.20 53,850.50 2,964.00 56,814.50
1060 - N 85th Ave & Kail Dr Sewer 17 204,843.97 0.00 204,843.97 0.00 2,961.41 201,882.56 0.00 201,882.56
1061- Simpson Lane Sewer 71 414,914.60 0.00 414,914.60 0.00 17,714.34 397,200.26 0.00 397,200.26
Total 174 $878,778.73 $13,429.55 $892,208.28 $0.00 $22,484.95 $857,224.78 $12,498.55 $869,723.33
AR Exhibits 12/9/2010 1111 III