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HomeMy WebLinkAbout02/18/2020 06E 2019 4th Quarter Accounts Receivable Status Report a\'4\lyy bxk ik 1 + PPP d g. P A PPPPPP+Pd s' lii it tYlltYlA.\ta. 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 2 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. 3 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. 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 $252,703 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