HomeMy WebLinkAbout12/06/2011 04D Accounts Receivable Status Report - 3rd Quarter 2011 •
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BUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
AGENDA STATEMENT y r
Item No. 1 D.
For Meeting of: December 6, 2011
ITEM TITLE: Accounts Receivable Status Report - 3rd Quarter 2011
SUBMITTED BY: Cindy Epperson, Deputy Director of Accounting and Budgeting
CONTACT PERSON/TELEPHONE: Cindy Epperson 576 -6771
SUMMARY EXPLANATION:
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.)
•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 September 30, 2011 is $1,859,026:
which includes $886,948 for General Receivables, $182,236 for Gambling Taxes, $39,869 for SIED Loans,
$11,950 for Section 108 Loans, and $738,023 for LID Assessments. (SIED loans and LID Assessments total
includes both current and long term receivables.)
Resolution Ordinance Other (specify)
Contract: Mail to:
Contract Term: Amount: Expiration Date:
Insurance Required? No
Funding Source: N/A Phone:
APPROVED FOR SUBMITTAL: 454,44 ,rX•L_ City Manager
STAFF RECOMMENDATION:
Accept Report.
BOARD /COMMISSION RECOMMENDATION:
ATTACHMENTS:
Click to download
Accounts Receivable Report - 3rd Quarter 2011
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City of Yakima
FINANCE DEPARTMENT
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STAFF REPORT
December 6, 2011
SUBJECT: Accounts Receivable Status Report
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3rd 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 September 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
September 30, 2011, is displayed in Exhibit I.
Each category billed has different collection requirements. 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 collect payment.
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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 the City's collection agency determines 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.)
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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 prior Parking & Business
Improvement Area (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. This assessment expired in August, 2011, therefore, the third
quarter billing was the final billing for this district.
Annual Charges - The $6,300.00 in the "Collection" column represents 43 accounts.
Quarterly Charges — The $17,097.23 in the "Collection" column represents 27 accounts.
Fire Alarm Monitor (FAM) — The $150.00 in the "Collection" column represents one account.
Front Street Business Improvement Assessment (FSBI) — The $839.53 in the "Collection" column
represents 6 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 $275.00 in the "Collection"
column represents 5 accounts.
Miscellaneous Billing — The billings under this category are mainly for transit bus passes and
refuse charges. The $8,167.41 in the "Collection" column represents 66 accounts; 64 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, one of the accounts in the "Over 120 Days" category was paid subsequent to 9/30/11, and
$31,898 represents the amount due from the Yakima Air Terminal for their portion of the liability
insurance included in the City's risk management program.
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 $2,016.50 in the "Collection" column represents 5 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 $21,748.96 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
Section 108 Loans — The $9,830.00 in the "Over 120 Days" column represents annual financial
custodian fees.
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 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
(typically with a 10 -year amortization schedule) that have annual payments. 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 3rd quarter of 2011, $222,206 in gambling tax payments were received. Year to date
gambling taxes collected are $656,817, or 75.6% 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. On January 29, 2010 a
default judgment was obtained against one of the defendants for this outstanding balance plus
expenses, however, no amounts have been collected on the debt to date. The last account has
entered into payment arrangements with the City, and is currently making those payments.
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
11111 Commission can revoke a license.
Page 3 of 6
. City of Yakima
CENTRAL BILLING ACCOUNTS RECEIVABLE
. (as of September 30, 2011)
3rd Quarter Activity Status
Approximate New
Billings Beginning Invoices Ending Current to Over Over To To
M Q A Balance • Billed ' Payments • Balance ' 90 Days 1 90 Days ' 120 Days ' Collection Legal
Recurring Receivables
Downtown Yak Bus Impr Dist
Annual (DYBIDA) - - 300 $11,225.00 - $2,825.00 $8,400.00 $0.00 $0.00 $2,100.00 $6,300.00 -
Quarterly (DYBID) - 300 - 62,547.73 $0.00 39,664.13 22,883.60 45.28 2,101.17 3,639.92 17,097.23 -
Fire Alarm Monitor (FAM) - 90 - 4,537.50 - 4,050.00 487.50 - 180.00 157.50 150.00 -
Front Street Business Impr (FSBI) - 20 - 1,968.75 - 411.72 1,557.03 - 383.75 333.75 839.53 -
Fruitvale Canal Billing (FC) - - 30 300.00 - 25.00 275.00 - - - 275.00 -
Miscellaneous 200 - - 109,202.26 154,322.25 212,514.33 51,010.18 41,325.63 - 1,517.14 8,167.41 -
Intergovernmental 1 4 15 106,853.55 649,738.36 93,851.24 662,740.67 628,106.53 - 34,634.14 - -
Traffic Eng./ Engineering 1 1 - 150.00 739.00 689.00 200.00 100.00 50.00 50.00 - -
Parking & Bus Impr Assess (PBIA) - 1 - 195.08 - 85.08 110.00 - - - 110.00 -
Parks & Recreation (WEED) 10 - - 5,248.43 13,079.15 10,408.22 7,919.36 4,200.86 1,542.00 160.00 2,016.50 -
Police Inmate Medical Reimb - - - 448.42 - - 448.42 - - - 448.42 -
Water/WW Invoice & Connections
City of Yakima 10 - 2 247,425.70 170,370.04 336,213.57 81,582.17 100.00 4,94622 . 54,786.99 21,748.96 -
Terrace Heights/Union Gap 2 2 4 (68,916.74) 233,846.27' 115,595.50' 49,334.03 49,334.03' - • - - -
Sub -total Receivables 224 418 351 481,185.68 1,222,095.07 816,332.79 886,947.96 723,212.33 9,203.14 97,379.44 57,153.05 -
Long -term Receivables
Section 108 Loans - - 1 9,830.00 2,120.00 - 11,950.00 2,120.00 - 9,830.00 - -
SIED Loans/ Contributions - - 2 39,869.40 - - $39,869.40
$16,462.37 23,407.03 - -
LID Assessments (1) - - 175 752,280.89 , - 14,257.92 738,022.97 - - - - -
Sub -total Long -term Receivables 0 0 178 801,980.29 2,120.00 14,257.92 789,842.37 2,120.00 16,462.37 33,237.03 - -
Gambling Tax I - 20 - 182,537.86 221,904.00' 222,206.00 $182,235.86 - - 5,220.00 16,196.56 $160,819.30
Total 224 438 707 $1,465,703.83 $1,446,119.07 $1,052,796.71 $1,859,026.19 $725,332.33 $25,665.51 $135,836.47 $73,349.61 $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
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City of Yakima •
SUMMARY OF GAMBLING TAX DELINQUENCY
(as of September 30, 2011)
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(A) Account(s) Sent to Collection:
410 Restaurant (1st, 2nd & 3nt Qtr 03) $3,837.36
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Michael's Tavern (2ncl, 3rd & 4th Qtr 08) 8,082.40
Minda Lanes (3rd & 4th Qtr 2009/1st - 4th Qtr 10) 4,276.80
Total (Including penalties) 16,196.56
(B) Account(s) Sent to Legal:
Thunderbird Casino (1st, 3rd & 4th Qtr07) (r) 160,819.30
Total (Including penalties) 160,819.30
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(C) Account(s) With Payment Arrangements:
Brews &Cries (1st -4th Qtr10) 5,220.00
Total (Including penalties) 5,220.00
Total $182,235.86
(1) Refer to gambling tax narrative on page 3 of this report for further information on this account.
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City of Yakima
SIED LOANS SUMMARY
(as of September 30, 2011)
Original Beginning Quarterly Activity 1 Ending
Loan Principal Amount Billed (1) Principal
Acct. 4 Amount Balance " Principal Interest Other Delinquent Payments Balance
Cascade Quality Molding (1) 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 September 30, 2011)
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Outstanding Principal 3rd Quarter Outstanding Principal
4 of Beginning Balance Principal Ending Balance
LID 4 - Description • Accts Current Delinquent Total Adds Payments Current Delinquent Total 1
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 $52,351.50 2,793.00 55,144.50 0.00 0.00 52,351.50 2,793.00 55,144.50
1057 - N 84th Ave & Hwthrn Dr Sewer 15 $45,674.88 10,517.66 56,192.54 0.00 , 0.00 45,674.88 10,517.66 56,192.54
1058 - N 95th Ave, 94th P1, W Yak Ave Swr 20 $43,655.80 5,092.70 48,748.50 0.00 0.00 43,655.80 5,092.70 48,748.50
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1060 - N 85th Ave & Kail Dr Sewer 17 $175,209.54 0.00 175,209.54 0.00 14,257.92 160,951.62 0.00 160,951.62
1061 - Simpson Lane Sewer 71 $354,941.94 0.00 354,941.94 0.00 0.00 354,941.94 0.00 354,941.94
Total 174 $731,417.18 $20,863.71 $752,280.89 $0.00 $14,257.92 $717,159.26 $20,863.71 $738,022.97
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