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BUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
AGENDA STATEMENT
Item No. 6.E.
For Meeting of: February 18, 2020
ITEM TITLE: 2019 4th Quarter 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
ITEM BUDGETED: NA
STRATEGIC PRIORITY: Public Trust and Accountability
APPROVED FOR SUBMITTAL BY THE CITY MANAGER
RECOMMENDATION:
Accept Report
ATTACHMENTS:
Description Upload Date Type
D 2019 4th C uarterAmounts e hle tatus deport / 12020 backup Material
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f1 , 's FINANCE DEPARTMENT
:
To: Mayor and City Council
Alex Meyerhoff,Interim City Manager
From: Steve Groom,Finance Department
Kathy Miles,Financial Services
Date: February 18,2020
Subject: Accounts Receivable Status Report-4th Quarter 2019
This report presents the status of receivables that are billed centrally by the Finance Department as of
December 31,2019.
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$10,600,175.
• Total Utility Billing accounts ending balance decreased by$298,996 or 5.5% due to payments
exceeding billing. The beginning balance has a prior-period correction,an increase of$167,060
from prior quarter.
• Total General Billing accounts ending balance decreased by$129,705 or 10.6%from prior quarter,
mainly due to collection activity.
• Accounts in collection total$188,655,or 17.3%of total ending balance.
• Total LID (Local Improvement District) accounts ending balance decreased by$11,354 or 14.1%
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.
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GENERAL RECEIVABLES DETAIL Exhibit I
Downtown Yakima Business Improvement District(DYBID) -Annually/Quarterly
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 $15,689 in the collection column is for 84 accounts.
Quarterly Charges-The$10,790 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 488 accounts in collection for a total of$76,111.
Front Sheet Business Improvement(FSBI) Assessment
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 12 accounts are in collection,totaling$3,127.
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$5,982.
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.
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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 $252,703 in gambling tax revenue,added to the first three quarters,this
represents 97.7%of the budgeted amount for the year($1,050,690),currently a decrease of 2.3%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$2,305,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$45,425. When accumulated interest ($32,456) and penalties
($43,630) are added,the total amount past due is$121,511. 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 $ 2,642,312 $ 5,210,753 $ 5,221,403 $ 2,631,662 $ 1,315,277 $ 49,794 $ 1,266,591 $ $
Water 1,277,981 2,356,059 2,738,552 895,488 404,555 10,666 480,266
Refuse 981,170 2,292,426 2,108,737 1,164,859 605,702 27,337 531,820
Irrigation 550,688 740,937 830,479 461,147 186,117 14,305 260,724
Total Enterprise Receivables $ 5,452,151 $ 10,600,175 $ 10,899,171 $ 5,153,156 $ 2,511,651 $ 102,102 $ 2,539,401 $ $
Central Billing Receivables
Downtown Yak Bus Impr Dist
Annual(DYBIDA) $ 22,187 $ $ 2,198 $ 19,989 $ $ $ 4,300 $ 15,689 $
Quarterly(DYBID) 31,726 34,557 39,403 26,880 2,237 13,854 10,790
Fire Inspections 116,961 34,545 39,644 111,862 20,126 6,475 9,150 76,111
Front Street Business Impr(PSBI) 4,788 1,184 1,176 4,796 434 1,235 3,127
Fruitvale Canal Billing(FC) 360 10 350 75 275
Miscellaneous 24,493 51,386 48,120 27,759 12,727 600 2,986 11,445
Intergovernmental 529,415 886,070 946,857 468,628 28,054 401,260 39,314
Traffic Eng./Engineering 1,520 150 150 1,520 100 100 1,320
Parks&Recreation(WEED) 6,299 6,299 317 5,982
Airport 62,640 200,824 205,518 57,945 37,439 8,293 6,601 2,998 2,615
Gambling 18,624 252,703 253,303 18,024 15,719 2,305
Water/WW Invoice&Connections
City of Yakima 273,971 536,044 579,735 230,280 104,389 1,160 78,212 46,519
Terrace Heights/Union Gap 126,014 355,066 366,120 114,960 114,960
Total Central Billing Receivables $ 1,218,998 $ 2,352,529 $ 2,482,234 $ 1,089,292 $ 320,466 $ 417,888 $ 157,364 $ 188,655 $ 4,920
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 $ 80,601 $ 11,354 $ $ 11,354 $ 69,247 $ 45,425 $ 76,086 $ 121,511
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) 2,305
Total $ 18,024
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 19,541 28,709 66,381
1058-N. 95th Avenue,94th Place,W.Yakima Avenue Sewer 1 4,121 4,121 4,121 4,327 6,188 14,636
1060-N. 85th Avenue&Kail Drive Sewer 4 6,481 6,481 1,296 136 1,432
1061-Simpson Lane Sewer 38 51,583 11,354 40,229 21,592 8,090 8,244 37,926
Total 47 $ 80,602 $ 11,354 $ 69,248 $ 45,425 $ 32,456 $ 43,630 $ 121,511