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Home My WebLink About11/17/2020 04C 3rd Quarter 2020 Accounts Receivable Status Report 't..an,gtntj ka l E$A 11, 1 d ;t aY BUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDA STATEMENT Item No. 4.C. For Meeting of: November 17, 2020 ITEM TITLE: 2020 3rd 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 Enterprise and Central billing billing and collections 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: Review only. Submitted for routine transparency and accountability. ATTACHMENTS: Description Upload Date Type D 3rd C as er e 101 91 0 0 xecuti surer ary 2 /...44,......--. ...-.1 ".,,, FINANCE DEPARTMENT c ) ow ,,...„., To: Mayor and City Council Bob Harrison From: Steve Groom Kathy Miles Date: November 17,2020 Subject: Accounts Receivable Status Report-3rd 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 September 30,2020. 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 S12.0 million,compared to S9.9 million in prior quarter, and total payments were S11.2 million,compared to S9.3 million in prior quarter. • Total Utility Billing accounts ending balance increased by S785,288 or 16.4% due to billings exceeding payments. • Total General Billing accounts ending balance increased by S92,438 or 9.2%from prior quarter, mainly due to yearly billing activity. • Accounts in collection total S180,789,or 16.5% of total ending balance. • Total LID (Local Improvement District) accounts ending balance decreased by S16,751 or 49.2% from prior quarter. • The collections process is managed continuously and reviewed monthly • Past due accounts are placed monthly with the city's collection agency. Note for 2nd&3rd quarter only: The placement of items that were due to go to collection with an agency was put on hold in March due to the COVID emergency. 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. 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 $9,881 in the collection column is for 52 accounts. Quarterly Charges- The$9,115 in the collection column is for 14 accounts. Fire Inspections The Fire Department is currently doing about.500 inspections and compliance re-inspections per month; there are currently 416 accounts in collection for a total of$69,807. 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 9 accounts are in collection, totaling$2,650. 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$131. 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 24 accounts are in c.ollection, totaling $10,713,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$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$53,641, 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 $2,384 in gambling tax revenue,with the inclusion of the previous two quarters, this represents 43.1% of the total budgeted amount for the year ($1,053,000). 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 517,321. When accumulated interest (57,270) and penalties ($7,797) are added, the total amount past due is$32,388. The City Legal Department is involved with collection efforts. RECURRING RECEIVABLES SUMMARY Exhibit I Quarterly Activity Status Hog i nn rig I'a ym en ts/ 11nd ing Current to Over Over Enterprise Receivables Balance Billed Write-offs Balance 90 Days 90 Days 120 Days Collection Legal Wastewater $ 2.258,408 S 5,399,666 S 5,039,174 $ 2,618,900 $ 1,216,787 S 67,674 S 1,334,439 S $ Water 1,072;6913 3,505,213 3,222,100 1,355,811 811,371 25,211 189,196 Refuse 9E14,406 2,190,440 2,161,358 1,013,488 432,902 35,220 545,366 - Irrigation. 478,01.1. 914,1(19 801.,508 590,611 311,847 18,745 /59,010 Total. derprise Receivables $ 4,793,523 $ 12,009,42S $ 11,224,140 $ 5,57B,811 $ 2,803,910 $ 1.46580 $ 2,628,021 $ - $ Central Billing Receivables Downtown Yak Bus Imp Dist Annual (DYBIDA) $ 71.,987 $ $ 781. $ 11,106 $ S S 11.,315 $ 9,8S1. $ Quarterly (ID YBI:ID) 25,556 37,965 37,274 26,246 3,394 732 13,00E 9,1.1E lire Inspections 97,818 4,710 1.0,865 91,663 1,270 155 70,431. 69,807 Front Street Business Iurpr(FSBI) 5,501 1,381 1,270 5,618 831 2,131 2,650 Fruitvale Canal Billing(FC) 1,016 110 906 775 131 Miscellaneous 30,237 10,5e30 50,619 20,119 5,50 360 3,513 10,713 Intergovernmental 477,626 579,300 615,370 441,555 43807 900 1,769 - Traffic Eng./ Engineering 147U 500 500 1,470 1,470 Parks&Recreatioi i(WEED) 6,299 - 6,299 - 317 5,982 Airport 61;841 192,389 209,354 44,876 29,806 276 9,030 3,150 2,615 Gambling 17,571 198,396 198,396 17,571 15,719 1,855 Water/WW Invoice&Connections City of Yakima 150,714 621,888 468,530 303,571 159,863 61,056 28,011 53,641. Terra ce He Uuiorr Gap 108,440 343,301 334,B56 116,886 116,886 Total Central Billing Receivables $ 1,005,587 $ 7,020,363 $ 1,9)7,925 $ 1,098,010 $ 756,503 $ 64,479 S 91.,781. $ IS0,759 $ 4,470 Original Beginning Quarterly Activity Ending Delinquent Principal Principal Total Principal Interest& Total Installment Receivables Balance Balance Principal Interest Payments Balance Princi pa L Pena Lties Past Due I II)Assessments $ 1,773,787 $ 144,066 $ 16,751. $ $ 16,751 $ 17,315 $ 1.7,Q:I $ 1.5/067 $ 31,388 GAMBLING TAX DETAIL Exhibit II 3rd Quarter A ccount(s)sent to Collection: Balance Michael's Tavern(1st-4thQtr 13) S 11,93S Michael's Tavern(1st-2nd Qtr 14) 3,781 15,719 A,count(.)with payment arrangements set up by Legal: Brews& Cues(1st-4th Qtr 14) 1,855 Total 5 17,574 LID ASSESSMENT DETAIL Exhibit III Quarterly Activity I/el Mg uent /!of Beginning Ending Total I..II)li-Uesc ri pti On Ards Ha lance Payments ents Ka lance Iirin;ri pal. Interest Penalties Past I 1052-Willow Area Water Main 1 S 286 $ 286 $ 2S5 $ 390 $ 489 $ 1,164 1057-N.84th Avenue& Hawthorne Drive Sewer 1 2,220 2,220 2,221 1343 2579 6;743 1058-N.95th Avenue,94th Place,W. Yakima Avenue Sewer 4,121 4,121 1060- N.85th Ave'ore&Kail Drive Sewer 1 2,593 1,297 1,296 1,296 68 — 1,364 1061 Simpson.I Sewer 7 /4,K52 11,333 13,519 13,519 4,869 4,729 23,117 Total 10 5 34,072 th 16,751 th 17,121 S 17,321 5 7,270 th 7,797 th 32,388