HomeMy WebLinkAbout08/16/2011 10B 2nd Quarter 2011 Accounts Receivable Status Report BUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
AGENDA STATEMENT
Item No. r 10
For Meeting of August 16, 2011
ITEM TITLE: Accounts Receivable Status Report — 2nd Quarter 2011
SUBMITTED BY: Finance Department
CONTACT PERSON/TELEPHONE: Cindy Epperson, p. Director of Acct/Budget, 575 -6070
SUMMARY EXPLANATION:
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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.)
411) • 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 June 30,
2011 is $1,465,704: which includes $481,186 for General Receivables, $182,538 for
Gambling Taxes, $39,869 for SIED Loans, $9,830 for Section 108 Loans, and
$752,281 for LID Assessments which include current and long term receivables and
$20,864 in delinquent accounts.
Resolution Ordinance Other (Specify) Report
Contract Mail to (name and address):
Phone:
Funding Source N/A ,�
APPROVED FOR SUBMITTAL: • s .i�`" `_._.„
City Manager
STAFF RECOMMENDATION: Accept Report.
BOARD /COMMISSION /COMMITTEE RECOMMENDATION:
® COUNCIL ACTION:
Quarterly A/R Agenda Statement
City of Yakima
FINANCE DEPARTMENT
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STAFF REPORT
August 16, 2011
SUBJECT: Accounts Receivable Status Report
2nd 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 June 30, 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
® quarterly activity of billings and payments and the aged receivable balance in each category as of
June 30, 2011, is displayed in Exhibit 1.
Each category billed has 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.)
Page 1 of 6
RECURRING RECEIVABLES
Downtown Yakima Business Improvement District - Annually /Quarterly (DYBID) - This is an
assessment that became effective September 2008, and replaced the Parking & Business •
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 $2,450.00 in the "Collection" column represents 23 accounts.
Quarterly Charges - The $13,915.74 in the "Collection" column represents 22 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 $7,843.41 in the "Collection" column represents 61 accounts; 59 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 the end of the
quarter, all accounts were paid.
Traffic Engineering / Engineering Billing - This account is generally for sidewalk safety repairs,
and currently has nothing in collection.
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 4 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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Water / Wastewater Invoices and Connections - The $22,238.19 in the "Collection" column is for
23 Water /Sewer invoices / contracts and fire hydrant meter charges, damages and utility back
billings sent to collection agency for follow up.
® LONG -TERM RECEIVABLES
CEIVA LES
Section 108 Loans - The $9,830.00 in the "Over 120 Days" column represents annual financial
custodian fees.
SLED 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 with the companies
that benefit from the improvements, with a 5 -year amortization. As of the end of the quarter, the
ending balance due 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 the end of the quarter,
the delinquent balance is $20,863.71. 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.
GAMBLING TAX
During the 2nd quarter 2011, $214,844 in gambling tax payments were received for the 1st
quarter 2010 gambling period. Year to date gambling taxes collected are $434,611, 50.0% of the
2011 budget of $869,000.
Gambling Tax Delinquencies - Exhibit II details the status of delinquent gambling tax accounts.
The delinquent accounts of 3 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.
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City of Yakima
CENTRAL BILLING ACCOUNTS RECEIVABLE
(as of June 30, 2011)
2nd Quarter Activity Status
Approximate New
Billings Beginning Invoices Ending Current to Over Over To To
M Q A Balance Billed Payments Balance 90 Days 90 Days 120 Days Collection Legal
Recurring Receivables
Downtown Yak Bus Impr Dist
Annual (DYBIDA) - - 300 $27,350.00 - - $16,125.00 $11,225.00 $1,500.00 $6,525.00 $750.00 $2,450.00 -
Quarterly (DYBID) , , - 300 - 62,421.97 $53,692.84 53,567.08 62,547.73 38,768.22 4,31024 5,553.53 13,915.74 -
Fire Alarm Monitor (FAM) - 90 - 4,946.79 4,852.50 5,261.79 4,537.50 4,170.00 150.00 67.50 150.00 -
Front Street Business Impr (FSBI) - 20 - 2,985.00 983.75 2,000.00 1,968.75 733.75 333.75 233.75 667.50 -
Fruitvale Canal Billing (FC) - - 30 1,910.00 - 1,610.00 300.00 - 100.00 50.00 150.00 -
Miscellaneous 200 - - 32,430.40 218,054.72 141,282.86. 109,202.26 99,610.17 33.68 1,715.00 7,843.41 -
Intergovernmental 1 4 15 848,487.54 82,596.69 824,230.68 106,853.55 106,854.55 - (1.00) - -
Traffic Eng./ Engineering 1 1 - 100.00 5,626.49 5,576.49 150.00 150.00 - - - -
Parking &Bus Impr Assess (PBIA) - 1 - 110.00 85.08 - 195.08 - - - 110.00 -
Parks & Recreation (WEED) 10 . - - 9,414.41 3,979.50 8,145.48 5,248.43 2,811.93 160.00 - 2,276.50 -
Police Inmate Medical Reimb - - - 448.42 - - 448.42 - - - 448.42 -
Water/WW Invoice & Connections
City of Yakima 10 - 2 93,537.45 442,821.56 288,933.31 247,425.70 221,301.80 13923 3,746.48 22,238.19 -
Terrace Heights/Union Gap 2 2 4 29,375.91 187,620.97 285,913.62 (68,916.74) (68,916.74) - - - -
Sub -total Receivables 224 418 351 1,113,517.89 1,000,314.10 1,632,646.31 481,185.68 405,483.68 11,751.90 12,115.26 50,249.76 -
Long-term Receivables
Section 108 Loans - - 1 9,830.00 - - 9,830.00 - - 9,830.00 - -
S1ED Loans / Contributions - - 2 39,869.40 - - $39,869.40 - $16,462.37 23,407.03 - -
LID Assessments (1) - - 175 794,150.07 - 41,869.18 752,280.89 - - 20,863.71 - -
Sub -total Long -term Receivables 0 0 178 843,849.47 - 41,869.18 801,980.29 - 16,462.37 54,100.74 - -
Gambling Tax - 20 - 183,937.86 213,443.99 214,843.99 $182,537.86 - - 5,522.00 16,196.56 $160,819.30
Total 224 438 707 $2,141,305.22 $1,213,758.09 $1,889,359.48 $1,465,703.83 $405,483.68 $28,214.27 $71,738.00 $66,446.32 $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= M y Q = Quarterly A = Annually Page of 6
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City of Yakima
SUMMARY OF GAMBLING TAX DELINQUENCY
(as of June 30, 2011)
(A) Account(s) Sent to Collection:
410 Restaurant (1st, 2nd & 3rd Qtr 03) $3,83736
Michael's Tavern (2nd 3rd & 4th Qtr 08) 8,082.40
Minda Lanes (3rd & 4th Qtr2009 /1st - 4th Qtr 10) 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:
• Brews &Cues (1st -4th Qtr10) 5,522.00
Total (Including penalties) 5,522.00
Total $182,537.86 •
(1) Refer to gambling tax narrative on page 3 of this report for further information on this account.
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EXHIBIT III
City o f Yakima
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SIED LOANS SUMMARY
(as of June 30, 2011)
Original . Beginning Quarterly Activity Ending
Loan Principal Amount Billed (1) Principal
Acct. # Amount Balance Principal Interest Other . Delinquent Payments Balance
Cascade Quality Molding ( 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 June 30, 2011)
Outstanding Principal 4th 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 $52,817.00 3,724.00 56,541.00 0.00 1,396.50 52,351.50 2,793.00 55,144.50
1057 - N 84th Ave & Hwthrn Dr Sewer 15 $47,919.78 10,517.66 58,437.44 0.00 2,244.90. 45,674.88 10,517.66 56,192.54
1058 - N 95th Ave, 94th Pl, W Yak Ave Swr 20 $48,711.00 5,092.70 53,803.70 0.00 5,055.20 43,655.80 5,092.70 48,748.50
1060 - N 85th Ave & Kail Dr Sewer 17 $201,882.56 0.00 201,882.56 0.00 26,673.02 175,209.54 0.00 175,209.54
1061 - Simpson Lane Sewer 71 $361,441.50 0.00 361,441.50 0.00 6,499.56 354,941.94 0.00 354,941.94
Total 174 $772,355.36 $21,794.71 $794,150.07 $0.00 $41,869.18 $731,417.18 $20,863.71 $752,280.89
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