HomeMy WebLinkAbout06/07/2011 14B Accounts Receivable Status Report - 1st Quarter 2011 BUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
AGENDA STATEMENT Q
Item No. Py 14
For Meeting of June 7, 2011
ITEM TITLE: Accounts Receivable Status Report — 1st Quarter 2011
SUBMITTED BY: Finance Department
CONTACT PERSON/TELEPHONE: Cindy Epperson, Dep. Director of Acct/Budget, 575 -6070 c
SUMMARY EXPLANATION:
This report lists all accounts receivable balances handled through Central Billing.
(Includes: Gambling tax, HUD Section 108, SIED Loans, LTD'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 March 31,
2011 is $2,141,305: which includes $1,113,518 for General Receivables, $183,938 for
Gambling Taxes, $39,869 for SIED Loans, $9,830 for Section 108 Loans, and
$794,150.for LID Assessments which include current and long term receivables and
$21,794 in delinquent accounts.
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:
1 411k0UNCIL ACTION:
Quarterly A/R Agenda Statement
City of Yakima
• FINANCE DEPARTMENT
STAFF REPORT
June 2, 2011
SUBJECT: Accounts Receivable Status Report
1st Quarter 2011
SUBMITTED BY: Finance Department
CONTACT PERSON: Cindy Epperson, Deputy Director of Accounting & Budgeting
This report reflects the status of Central Billing Accounts Receivable at March 31, 2011.
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
c uarterly activity of billings and payments and the aged receivable balance in each category as of
March 31, 2011, 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.)
a Downtown Yakima Business Improvement District- Annually /Quarterly (DYBID) - This is an
ssessment that became effective September, 2008, and replaced the Parking & Business
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A/ R mem 1st Quarter Report.docx
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 $3,150.00 in the "Collection" column represents 29 accounts.
Quarterly Charges - The $15,106.65 in the "Collection" column represents 28 accounts.
Fire Alarm Monitor (FAM) - The $150.00 in the "Collection" column represents one account.
Front Street Business Improvement Assessment (FSBI) - The $667.50 in the "Collection" column
represents 5 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 $150.00 in the "Collection"
column represents 4 accounts.
Miscellaneous Billing - The billings under this category are mainly for transit bus passes and
refuse charges. The $7,858.86 in the "Collection" column represents 62 accounts; 60 for refuse bin
charges, one for plans and one for lost video equipment.
Intergovernmental - This category includes billings to other governmental agencies, such as the
Yakima Air Terminal, Yakima County and local police and fire departments. As of April all
accounts were paid.
Traffic Engineering / Engineering Billing - This category is generally for sidewalk safety repairs,
and currently has no delinquencies.
Parking and Business Improvement Assessment (PBIA) - The $110.00 in the "Collection" column
represents 7 accounts, 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 $2,276.50 in the "Collection" column represents 6 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 four remaining accounts which have not yet met the write -off
criteria have a balance of $448.42 and are currently in collection.
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A/R mem 1st Quarter Report.docx
Water / Wastewater Invoices and Connections - The $23,120.71 in the "Collection" column is for
• 25 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 1st quarter 2011, $219,767.20 in gambling tax payments were received for the 4th
quarter 2010 gambling period. Year to date gambling taxes collected are $219,767, 25.3% of the
2011 budget of $869,000.
Gambling Tax Delinquencies - Exhibit II details the status of delinquent gambling tax accounts.
The delinquent accounts of three gambling establishments, totaling $16,196.56, have been sent to
collections. A fourth 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
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 /2 grant and 1 /2 loan for
infrastructure improvements, and enters into loan agreements, amortized over five years, with
the companies that benefit from the improvements. As of March 31, 2011, the ending balance due
for was $39,869.40. Exhibit III summarizes the status of the outstanding SIED loans.
Section 108 Loans
The $9,830.00 in the "Over 120 Days" column represents annual financial custodian fees.
Local Improvement District (LID)
LID balances, like the SIED loans, are long -term receivables (typically with a 10 -year
amortization schedule) with annual payments. Exhibit IV summarizes the status of outstanding '
LID receivables. The amount considered current includes both the long -term portion of the
liability and any balance currently billed. As of March 31, 2011, the delinquent balance is
$21,794.71. An LID represents a lien against the property, and State law requires foreclosure
after three 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 two years in arrears.
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A/R mem 1st Quarter Report.docx
EXHIBIT I
•
City of Yakima
CENTRAL BILLING ACCOUNTS RECEIVABLE
(as of March 31, 2011)
------ _-- __ ----� 1st Quarter Activity -
Approximate New
Billings Beginning Invoices Ending Current to Over Over To To
Accounts Receivable M Q A Balance Billed Payments Balance 90 Days 90 Days 120 Days Collection Legal
Downtown Yak Bus Impr Dist
Annual (DYBIDA) - - 418 $ 6,450.00 $ 38,800.00 $ 17,900.00 $ 27,350.00 $ 23,375.00 $ - $ 825.00 $ 3,150.00 $
Quarterly (DYBID) - 265 - 30,290.13 86,844.49 54,712.65 62,421.97 45,646.36 - 1,668.96 15,106.65
Fire Alarm Monitor (FAM) - 90 - 277.50 9,765.00 5,095.71 4,946.79 4,912.50 - (115.71) 150.00
Front Street Business Impr (FSBI) - 20 - 1,917.50 2,017.50 950.00 2,985.00 1,417.50 - 900.00 667.50
Fruitvale Canal Billing (FC) - - . 50 300.00 3,510.00 1,900.00 1,910.00 1,710.00 - 50.00 150.00
Miscellaneous 65 - - 18,794.84 233,402.78 219,767.22 32,430.40 23,974.87 99.23 497.44 7,858.86
Intergovernmental 25 141,325.84 1,062,73222 355,570.52 848,487.54 848,487.54
Traffic Eng./ Engineering 1 - - - 5,228.00 5,128.00 100.00 100.00 - - -
-
•
Parking & Bus Impr Assess (PBIA) - - - 110.00 - - 110.00 - - - 110.00
Parks & Recreation (WEED) 15 - - 19,618.62 15,095.71 25,299.92 9,414.41 6,927.91 - 210.00. 2,276.50
Police Inmate Medical Reimb - - 448.42 - - 448.42 - - - 448.42
Water/WW Invoice & Connections
City of Yakima 10 - 2 355,464.22 374,241.95 636,168.72 93,537.45 64,258.36 - 6,158.38 23,120.71
Terrace Heights/Union Gap 6 - - . 40,311.27 160,376.36 171,311.72 29,375.91 29,375.45 - 0.46
S
-
ub Total Rgular Billing 97 400 470 615,308.34 1,992,014.01 1,493,804.46 1,113,517.89 1,050,185.49 99.23 10,194.53 53,038.64
Gambling Tax
20 172,739.06 230,966.00 219,767.20 183,937.86 - - 6,922.00 16,196.56 160,819.30
Sub Total Gambling Tax 20 172,739.06 230,966.00 219,767.20 183,937.86 - - 6,922.00 16,196.56 160,819.30
Long Term
SIED Loans/ Contributions - - 2 39,869.40 - $39,869.40 - $5,476.49 4,823.17 - -
Section 108 Loans - - 1 9,830.00 - - 9,830.00 - - 9,830.00 - -
LID Assessments" 174 823,453.27 29,303.20 794,150.07 - - 21,794.71 -
Sub Total Long Term - - 175 873,152.67 - 29,303.20 843,849.47 - 5,476.49 36,447.88 - -
TOTAL 97 420 645 1,661,200.07 2,222,980.01 1,742,874.86 2,141,305.22 1,050,185.49 5,575.72 53,564.41 69,235.20 160,819.30
•
(1) LID Assessments: There are several LID's, each in a different phase of their original ten year "pay back" period. Refer to Exhibit IV, attached, for delinquent information regarding each LID.
Legend: M = Monthly Q = Quarterly A = Annually
ill
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® IT II
City of Yakima
SUMMARY OF GAMBLING TAX DELINQUENCY
(as of March 31, 2011)
(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
•
Mirada Lanes (3rd & 4th Qtr 2009/1st - 4th Qtr 2010) 4,276.80
Total (Including penalties) 16,196.56
(B) Account.(s) Sent to Legal:
Thunderbird Casino (1st, 3rd & 4th Qtr 07) (1) 160,819.30
Total (Including penalties) 160,819.30
(C) Account(s) With Payment Arrangements $ 6,922.00
Total (Including penalties) 6,922.00
Total $183,937.86
(1) Refer to gambling tax narrative on page 3 of this report for further information on this account.
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mem AR Exhibits 1st Qrtr.xlsx 6/2/2011 •
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EXHIBIT III
City of Yakima
SIED LOANS SUMMARY
(as of March 31, 2011)
Original Beginning -- ---- -- ---- -- Quarterly Activity ------------------ - - - - -- Ending
Loan Principal -- -- - --- Amount Billed (1) --- - ----- Principal
Acct. # Amount Balance Principal Interest Other Delinquent Payments Balance
Cascade Quality Molding t'l 4594 $44,000.00 $10,299.66 $0.00 $0.00 $0.00 $5,476.49 $0.00 $10,299.66
Yakima Air Terminal 5644 64,500.00 29,569.74 0.00 0.00 0.00 10,985.88 0.00 $29,569.74
Total (2) $108,500.00 $39,869.40 $0.00 $0.00 $0.00 $16,462.37 $0.00 $39,869.40
(1) Annual loan payments due - (a) Cascade Quality Molding - June 1st; (b) Yakima Air Terminal - June 1st.
(2) Approximately $264,000 in additional SIED loans are pending completion.
EXHIBIT IV
LID ASSESSMENT RECEIVABLES
(as of March 31, 2011)
Outstanding Principal 1st 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 $59,583.52 $1,889.55 $61,473.07 $0.00 $0.00 $59,583.52 $1,889.55 $61,473.07
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 • $56,309.00 5,586.00 61,895.00 0.00 5,354.00 52,817.00 3,724.00 56,541.00
1057 - N 84th Ave & Hwthm Dr Sewer 15 $47,919.78 10,517.66 58,437.44 0.00 0.00 47,919.78 10,517.66 58,437.44
1058 - N 95th Ave, 94th Pl, W Yak Ave Swr 20 $48,711.00 5,092.70 53,803.70 0.00 0.00 48,711.00 5,092.70 53,803.70
1060 - N 85th Ave & Kail Dr Sewer 17 $201,882.56 0.00 201,882.56 0.00 0.00 201,882.56 0.00 201,882.56
1061 - Simpson Lane Sewer 71 $385,390.70 0.00 385,390.70 0.00 23,949.20 361,441.50 0.00 361,441.50
Total 174 $799,796.56 $23,656.71 $823,453.27 $0.00 $29,303.20 $772,355.36 $21,794.71 $794,150.07
mem A 1st Qrtr.xlsx 6/2/2011
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