HomeMy WebLinkAbout11/20/2012 04B Accounts Receivable Status Report - 3rd Quarter 2012 �; t wY1 f:
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BUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
AGENDA STATEMENT n
Item No. �f
For Meeting of: November 20, 2012
ITEM TITLE: Accounts Receivable Status Report - 3rd Quarter 2012
SUBMITTED BY: Finance Department
CONTACT Cindy Epperson, Director of Finance and Budget, 576 -
PERSON /TELEPHONE: 6771
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. I
• Exhibit I -- 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 outstanding balance of recurring receivables billed through Central Billing as of
September 30, 2012 is $1,759,941 which includes $1,578,303 for General Receivables and
$181,638 for Gambling Taxes. The outstanding balance for Installment Accounts that have
been billed as of September 30, 2012 is $65,570, which is for LID Assessments.
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El 3rd qtr Accts Receivable Report
City of Yakima
FINANCE DEPARTMENT
STAFF REPORT
November 13, 2012
SUBJECT: Accounts Receivable Status Report
3nd Quarter 2012
SUBMITTED BY: - Finance Department
CONTACT PERSON: Cindy Epperson, Director of Finance and Budget
The Accounts Receivable Status Report reports the status of Central Billing Accounts Receivables
and Installment Accounts as of September 30, 2012.
CENTRAL BILLING ACCOUNTS RECEIVABLE
Exhibit I is a summary by category (type) of the accounts billed through Central Receivables as of
September 30, 2012. For each category the report displays the frequency of billing, the number of
customers, the balance at the beginning of the reporting period, the quarterly billings and
payments, the ending balance, and the aged receivable balance.
Each category billed has different collection requirements. For example, unpaid Sewer contracts
become a lien against the real property. For categories such as traffic, miscellaneous, and parks
the City uses a collection agency.
This report provides information on accounts that have a large balance due; are past due by at
least 120 days; have been placed with the collection agency; are being pursued through legal
proceedings; or have been determined to be uncollectable. The City's collection agency classifies
an account as uncollectable when the account is beyond the statute of limitations for collection;
the agency cannot locate the party; or the customer has been declared bankrupt. At year end,
uncollectable accounts are recommended to the City Council for write -off. Once an item has
been billed it takes Council action to remove it from the City's 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
assessment began in September 2008 and was renewed in 2012. It replaced the 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.
Annual Charges — The $10,033 in the collection column is for 62 accounts.
Quarterly Charges — The $36,949 in the collection column is for 39 accounts.
Fire Alarm Monitor (FAM) — There are three accounts in collection totaling $139.
Front Street Business Improvement Assessment (FSBI) — A total of eight accounts are in
collection, totaling $1,035.
Fruitvale Canal Billing — There is a separate irrigation fee for customers connected directly to the
Fruitvale Canal. 50 accounts are billed annually. The $325 in the collection column is for five
accounts.
Miscellaneous Billing — Recurring billings in this category include transit bus passes, refuse
charges and retiree premiums for health benefits. This category also includes the truly
miscellaneous one -time charges. There was a one -time billing of about $1 million to Burlington
Northern Santa Fe Railroad for their agreed upon contribution for the Lincoln Avenue underpass
construction project. This was still outstanding at the end of the quarter, but is still considered
current. The $7,874 in the collection column is for 61 accounts; 60 for refuse bin charges and one
for lost video equipment.
Intergovernmental — This category includes billings to other governmental agencies, including
state agencies, counties, cities, school districts, and local police and fire departments.
Traffic Engineering I 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 is
for seven accounts which are being handled by a collection agency. This PBIA expired in April
2008 and has been replaced by the Downtown Yakima Business Improvement District.
Parks and Recreation Billing — The $4,763 in the collection column is for four accounts.
Section 108 Loan Fees — This account is for custodial fees due for the 108 Loans. Currently the
account is paid in full.
Police Inmate Medical Reimbursement — In May 1999, the City started billing former inmates for
medical costs incurred while they were in custody. At the Municipal Court study session in
January, 2001, Council determined that billing these accounts was not cost effective and directed
Finance to stop billing them. The $448 in collection is for the remaining four accounts.
Page 2 of 6
Water /Wastewater Invoices and Connections - The $24,220 in collection is for 24 Water /Sewer
invoices /contracts and fire hydrant meter charges, damages to Water /Sewer equipment, and
utility back billings.
Gambling Tax
This quarter the City received $210,065 in gambling tax revenue. Year to date the City has
received $644,505 in gambling taxes which is 74.0% of the 2012 budget of $871,000.
Gambling Tax Delinquencies - Exhibit II details the status of delinquent gambling tax accounts.
Three delinquent accounts, totaling $16,197, have been sent to collection, and one account,
totaling $4,622, and with payment arrangements will be sent to collection if one more payment is
missed.
A fourth account owes the City $160,819 in past due gambling taxes and penalties. In July 2008,
the City filed a Complaint in Yakima °County Superior Court against the casino and officers,
directors and /or managers for collection of the unpaid gambling taxes and penalties. The
Gambling commission notified us in September 2008 that the business had surrendered its
gambling license. In May 2009, the casino and one of the defendants filed Chapter 7 bankruptcy
and their liabilities 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.
In early 2012, the City attorney handling this case recommended that the City write off this debt
due to the inability to collect the debt. Consequently, it will be written off at the end of the year.
For the last delinquent account, the City entered into payment arrangements with the business. -
The business has not lived up to the agreement. This account will be sent to collection if this
situation continues.
We have informed the Gambling Commission of the status of these accounts and keep them
informed of any changes in their status. When a judgment is granted the Gambling Commission
can revoke the company's license.
INSTALLMENT ACCOUNTS
SIED Loans - Yakima County administers a program for investing in economic development in
Yakima County, Supporting Investment in Economic Development (SIED). The City uses this
program, which offers 1/2 grant and 1/2 loan, for infrastructure improvements and loans with the
companies that benefit from the improvements. These loans have a 5 -year amortization. As of the
end of the quarter all accounts were current. Exhibit III summarizes the status of the outstanding
SIED loans.
Local Improvement District (LID) - Exhibit IV summarizes the status of outstanding LID
receivables. The delinquent amounts are unpaid installments for prior years plus fines and
interest. As of the end of the quarter, the delinquent balance is $65,570.
Page 3 of 6
EXHIBIT I
ACCOUNTS RECEIVABLE
(as of September 30, 2012)
CENTRAL BILLING ACCOUNTS RECEIVABLE
Approximate Quarterly Activity Status
Billings Beginning New Ending Current to Over Over To To
Recurring Receivables M Q A Balance Billed Payments Balance 90 Days 90 Days 120 Days Collection Legal
Downtown Yak Bus Impr Dist
Annual (DYBIDA) - - 300 $12,783 $100 $1,700 $11,183 $100 $0 $1,050 $10,033 $0
Quarterly (DYBID) - 300 - 39,769 42,750 35,612 46,906 931 8,615 411 36,949 0
Fire Alarm Monitor (FAM) - 90 - 139 0 (218) 356 0 218 0 139 0
Front Street Business Impr (FSBI) - 20 - 1,335 934 650 1,619 0 484 100 1,035 0
Fruitvale Canal Billing (FC) - - 30 415 0 100 315 0 0 (10) 325 0
Miscellaneous 200 - - 84,483 1,064,920 26,801 1,122,602 1,050,638 65 64,025 7,874 0
Intergovernmental 1 4 15 76,975 635,065 572,376 139,663 66,333 64,973 8,357 0 0
Traffic Eng./ Engineering 1 1 - 350 150 50 450 150 50 250 0 0
Parking & Bus Impr Assess (PBIA) - 1 - 195 635 550 280 0 85 85 110 0
Parks & Recreation (WEED) 10 - - 11,955 5,983 11,392 6,545 1,046 736 0 4,764 0
Section 108 Loan Fees (tl - - 1 0 2,650 2,650 0 0 0 0 0 0
Police Inmate Medical Reimb - - - 448 0 0 448 0 0 0 448 0
Water/WW Invoice & Connections
City of Yakima 10 - 2 261,743 283,274 401,300 143,717 63,306 42,658 13,533 24,220 0
Terrace Heights /Union Gap 2 2 4 145,584 196,588 237,955 104,218 104,218 0 0 0 0
Sub -total Receivables 224 418 352 636,174 2,233,048 1,290,919 1,578,303 1,286,621 117,883 87,802 85,898 0
Gambling Tax - 20 - 181,638 210,065 210,065 181,638 0 0 4,622 16,197 160,819
Total 224 438 352 $817,812 52,443,113 $1,500,984 $1,759,941 $1,286,621 $117,883 . $92,424 $102,094 $160,819
INSTALLMENT ACCOUNTS
Approximate Original Beginning Quarterly Activity Ending Delinquent
Billings Principal Prinicpal Total Principal Interest & Total
Installment Receivables M Q A Balance Balance Principal Interest Payments Balance Principal Penalties Past Due
SIEDLoans /Contributions - - 4 $372,500 $98,970 $0 $0 $0 $98,970 $0 $0 $0
LID Assessments - - 175 1,773,787 585,355 n/a n/a 6,216 579,139 31,795 33,775 65,570
Sub -total Installment Receivables - - 179 $2,146,287 $684,325 $0 $0 $6,216 $678,109 $31,795 $33,775 $65,570
(1) Billed annually in July of each year
Legend: M= Monthly Q = Quarterly A= Annually
Page 4 of 6
EXHIBIT II
City of Yakima
SUMMARY OF GAMBLING TAX DELINQUENCY
(as of September 30, 2012)
(A) Account(s) Sent to Collection:
410 Restaurant (1st, 2nd &3rd Qtr 03) $3,837
Michael's Tavern (2nd, 3rd & 4th Qtr 08) 8,082
Minda Lanes (3rd & 4th Qtr 2009/1st - 4th Qtr10) 4,277
Total (Including penalties) 16,197
(B) Account(s) Sent to Legal:
Thunderbird Casino (lst, 3rd & 4th Qtr 07) (1) 160,819
Total (Including penalties) 160,819
(C) Account(s) With Payment Arrangements:
Brews & Cues (1st -4th Qtr10) (2) 4,622
Total (Including penalties) 4,622
Total $181,638
(1) Refer to gambling tax narrative on page 3 of this report for further information on this account.
(2) Collection letter to be sent - arrangements not kept.
Page 5 of 6
EXHIBIT III
City of Yakima
SIED LOANS SUMMARY
(as of September 30, 2012)
Original Beginning Quarterly Activity Ending Delinquent
Loan Principal Amount Billed (I) Principal Total
Acct. # Amount Balance Principal Interest Payments Balance Principal Interest Past Due
McAllister Fieldfltalstone 5024 $214,000 $90,144 $0 $0 $0 $90,144 $0 $0 $0
Yakima Air Terminal 5644 64,500 0 0 0 0 0 0 0 0
Total $278,500 $90,144 $0 $0 $0 $90,144 $0 $0 $0
(1) Annual loan payments due - (a) McAllister - December 1st; (b) Yakima Air Terminal - May la t.
EXHIBIT IV
LID ASSESSMENT RECEIVABLES
(as of September 30, 2012)
- Quarterly Principal Activity - Delinquent
# of Beginning Ending Interest& Total
LID # - Description Accts Balance Payments Balance Principal Penalties Past Due
1049 - N 1st Ave Paving Project 23 $44,114 $0 $44,114 $0 $0 $0
1052 - Willow Area Watermain 2 571 0 571 571 558 1,129
1056 - S. 7th, 8th , & 9th Avenue Sewer 26 44,488 3,259 41,230 2,793 2,737 5,530
1057 - N 84th Avenue & Hawthorne Drive Sewer 15 43,821 0 43,821 10,885 13,689 24,573
1058 - N 95th Avenue, 94th Place, W. Yakima Avenue Sewer 20 40,458 0 40,458 7,221 8,689 15,910
1060 - N 85th Avenue & Kail Drive Sewer 17 117,434 1,296 116,138 2,593 2,043 4,636
1061 - Simpson Lane Sewer 71 294,469 1,661 292,808 7,732 6,059 13,791
Total 174 $585,355 $6,216 $579,139 $31,795 $33,775 $65,570
Page 6 of 6