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Home My WebLink About05/05/2020 05B 1st Quarter 2020 Accounts Receivable Status Report to\'4\lyy tbxk ik 1 + PPP d g. P A P p PPi ittYlltYlt.\ta. BUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDA STATEMENT Item No. 5.B. For Meeting of: May 5, 2020 ITEM TITLE: 2020 1st 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 I I -- 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: Review only. Submitted for routine transparency and accountability. ATTACHMENTS: Description Upload Date Type 1 ei tiles l e rt 4/24/2020 x uti um a 2 of Yi,L,, ..„.„4-+4, ...„,,,,, FINANCE DEPARTMENT ) coy To: Mayor and City Council Alex Meyerhoff,Interim City Manager From: Steve Groom,Finance Department Kathy Miles,Financial Services Date: May 5,2020 Subject: Accounts Receivable Status Report- 1st Quarter 2020 The purpose of this report is to provide transparency and accountability,to confirm budgeted revenues were billed and to present the status of receivables that are billed centrally by the Finance Department as of March 31,2020. The COVID emergency was declared in Yakima on March 1 lth after which utility shutoffs ceased as a means of collection. Utility receivables are billed for two months per cycle and may increase as billings across the city are processed into the next quarter and payment plans increase. Summary • Total Utility Billing revenue for the quarter was S9,930,288. • Total Utility Billing accounts ending balance increased by S611,237 or 11.9% due to billings exceeding payments. • Total General Billing accounts ending balance increased by S96,465 or 8.9%from prior quarter, mainly due to yearly billing activity. • Accounts in collection total S201,293,or 17.0% of total ending balance. • Total LID (Local Improvement District) accounts ending balance decreased by S31,345 or 45.3% 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 cleaning, 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 $15,239 in the collection column is for 82 accounts. Quarterly Charges- The$10,433 in the collection column is for 19 accounts. Fire Inspections The Fire Department is currently doing about.500 inspections and compliance re-inspections per month; there are currently 481 accounts in collection for a total of$79,737. Front Street 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 53,127. 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 3 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 c.ollection, totaling $11,295,primarily for Police event senices and refuse bin charges. Intergovermnental 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 12 accounts are in collection totaling$5,982. Airport The majority of the$3,150 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 62,615 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 27 accounts are in collection, totaling$56,231, 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 ordinanc.e 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 $253,137 in gambling tax revenue, this represents 24.0%of the budgeted amount for the year(51,053,000). 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 61,855,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 LID's 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 532,694. When accumulated interest (514,836) and penalties ($17,333) are added, the total amount past due is$64,913. 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 $ 2,631,662 $ 5,098,626 $ 4,826,577 $ 2,903,711 $ 1,543,1777 $ 47,269 $ 1,308,265 $ $ Water 895,188 2,091,950 1,818,321 1,139,117 613,397 7,020 188,700 Refuse 1,164,859 1,838,050 1,876,538 1,126,370 555,809 23,645 546,916 Irrigation. 461,147 901,662 767,61.5 595,1.93 319,668 3,436 272,089 Total Enterprise Receivables ivables $ 5,1 :3,156 $ 9,930,28B $ 9,319,051 $ 5,764,391 $ 3,067,051 $ B1,370 $ 2,615,970 $ - $ Central Billing Receivables Downtown Yak Bus Impr Dist Annual (DYBII)A) $ 19,989 $ 32,300 $ 19,700 $ 32,589 $ 13,300 $ $ 4,000 $ 15,289 $ Quarterly(DYB1D) 26,880 37,775 29,265 35,390 10,554 - 14,39B 10,43B I ire Inspections II 1,56/ 43,430 46,755 108,537 16,315 2,S95 9,540 79,787 Front Street Business Impr (FSBI) 4,796 1,331 600 5,530 9&1 1,119 3,127 Fnutvale Canal Billing(FC) 350 350 75 275 Miscellaneous 27,759 56,280 56,925 27,113 11,752 1,579 2,186 11,295 Intergovernmental 46B,62B 9B0,934 961,474 488,087 4R5,9BB 975 1,124 -Traffic Eng./Is'rigineering 1,520 I00 150 1,470 100 50 1,320 Parks& Rec reatioi i AV FED) 6,299 - - 6,299 - - 317 5,982 Airport 57,945 197,114 186,897 63,162 49,609 5,804 6 985 3,150 2615 Gambling 18,024 253,187 253,637 17,571 15,719 1855 Water/WW Invoice&Connections City of Yakima. 230,2S0 580,798 523,029 288,050 214,022 17,796 56,231. Terrace Heights/tinkin Gap 114 960 331,913 340,266 106,607 106,607 Total Central billing Receivables $ 1,089,29i $ 2,515,165 $ 2,418,698 $ 1,1H5,75H $ 909,231 $ 11,303 $ 59,460 $ 201,293 $ 4,470 Original Beginning Quarterly Activity Ending Delinquent Principal Principal Total Principal Interest& Total Installment Receivables Balance Balance Principal. Interest Payments Ba le nee Principal Penalties Past Due I,I:I)Assessments $ 1,773,787 $ 69,247 $ 31.,45 $ $ 31,345 $ 37,902 $ i2,694 $ 32,219 $ 64,913 GAMBLING TAX DETAIL Exhibit II 1st Quarter A ccount(s)sent to('olledi on: I a lance Michael's Tavern(1st-4th Qtr 13) $ 11,938 Michael's Tavern(1st-2nd Qtr 14) 3,781 15,719 A ecount(s)with payment arrangements set up by I..ega I: Brews&Cues(1st-4th Qtr 14) 1,855 Total 5 17,574 LID ASSESSMENT DETAIL Exhibit III Quarterly Activity I)elinyuent /1 of Beginning finding Total. I,II.) 8-Description A ccts Balance Payments Balance I'rin ci pa I Interest Pena hies Past I hie 1052-Willow Area Water Main 1 $ 286 $ 286 $ 285 $ 390 $ 489 $ 1,164 1057-N.84th Avenue&Hawthorne Drive Sewer 3 18,131 15,911 2,220 2.221 4943 2,579 6,743 1058-N.95thAvenue,94th Place,W. Yakima Avenue 1 4,116 4,116 4,116 4,327 6,158 14,631 1060 -N.85th Avenue& Kad Drive Sewer 4 6,481 1,296 5,185 — — I061 Simpson I ane Sewer 38 40,229 14,138 26,091. 76,072 8,1.76 8,1.77 42,375 Total 47 th 69,243 th 31r345 5 37,898 5 32,694 5 14,836 5 17e383 $ 64,913