HomeMy WebLinkAbout08/20/2013 05D 2013 2nd Quarter Accounts Receivable Status ReportBUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
AGENDA STATEMENT
Item No.S
For Meeting of: 8/20/2013
ITEM TITLE: 2nd Quarter 2013 Accounts Receivable Status Report.
SUBMITTED BY: Cindy Epperson, Director of Finance and Budget 576 -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
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 June 30,
2013 is $783,117 which includes $763,503 for General Receivables and $19,614 for Gambling
Taxes. The outstanding balance for Installment Accounts that have been billed as of June 30,
2013 is $85,244 for LID Assessments.
Resolution:
Other (Specify): Report
Contract:
Start Date:
Item Budgeted:
Funding Source /Fiscal
Impact:
Strategic Priority:
Insurance Required? No
Mail to:
Ordinance:
Contract Term':
End Date:
Amount:
Public Trust and Accountability
Phone:
mm
City Manager
Description:
AR Report 2nd Qtr 2013
City of Yakima
FINANCE DEPARTMENT
STAFF REPORT
August 20, 2013
SUBJECT: Accounts Receivable Status Report
2nd Quarter 2013
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 June 30, 2013.
CENTRAL BILLING ACCOUNTS RECEIVABLE
Exhibit I is a summary by category (type) of the accounts billed through Central Receivables as of
June 30, 2013. 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 $13,246 in the collection column is for 77 accounts.
Quarterly Charges - The $9,620 in the collection column is for 30 accounts.
Quarterly Charges - The $23,954 in the legal column is for 10 past due accounts that are
working with the city directly to get these accounts up to date. Nine (9) accounts have
made payment arrangements, and 1 account is still in the legal process.
Fire Alarm Monitor (FAH) - There are two accounts in collection totaling $64.
Front Street Business Improvement Assessment (FSBI) - A total of nine accounts are in collection,
totaling $1,749.
Fruitvale Canal Billing - There is a separate irrigation fee for customers connected directly to the
Fruitvale Canal. 50 accounts are billed annually. The $300 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, along with other truly miscellaneous one -time
charges. The $6,957 in the collection column is for 51 accounts; 48 for refuse bin charges, one for
a bin enclosure lease, one for parking permits 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 / Engineering Billing - This account is generally for sidewalk safety repairs,
and currently has nothing in collection.
Parking and Business Improvement Assessment (PBIA)lParkingAssessments - The $85.00 in the
collection column is for five 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 Field Rental Billing - The $4,764 in the collection column is for four
accounts.
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 $13,568 in collection is for 20 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 $221,258 in gambling tax revenue which is 25.5% of the 2013
budget of $867,500.
Gambling Tax Delinquencies - Exhibit II details the status of delinquent gambling tax accounts.
Three delinquent accounts, totaling $16,197, have been sent to collection. One account with
previous payment arrangements and in arrears $3,418 has caught up with the previous
arrangement, but will be sent to collection if these arrangements fall in arrears again.
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/z grant and 1/z 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 the only account was current. Exhibit III summarizes the status of the
outstanding SIED loan.
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 principal balance is $42,467. When interest
and penalties of $42,777 are added, the total amount past due is $85,244.
Page 3 of 6
ACCOUNTS RECEIVABLE
(as of June 30, 2013)
CENTRAL BILLING ACCOUNTS RECEIVABLE
Quarterly Activity
Beginning New Ending
Balance Billed Payments Balance
$19,604
Approximate
$5,358
Billings
Recurring Receivables
M Q A
Downtown Yak Bus Impr Dist
36,044
Annual (DYBIDA)
- 475
Quarterly (DYBID)
250 -
Fire Alarm Monitor (FAM)
90
Front Street Business Impr (FSBI)
20
Fruitvale Canal Billing (FC)
- 50
Miscellaneous
100 - -
Intergovernmental
125 25 25
Traffic Eng./ Engineering
2 1 -
Parking & Bus Impr Assess (PBIA)
- -
Parks & Recreation (WEED)
10
Police Inmate Medical Reimb
-
W ater/W W Invoice & Connections
212,014
ACCOUNTS RECEIVABLE
(as of June 30, 2013)
CENTRAL BILLING ACCOUNTS RECEIVABLE
Quarterly Activity
Beginning New Ending
Balance Billed Payments Balance
$19,604
$0
$5,358
$14,246
42,579
32,213
38,748
36,044
64
0
0
64
2,199
984
850
2,333
290
3,535
3,425
400
23,037
50,951
50,752
23,236
598,234
519,804
993,127
124,911
450
559,237
347,673
212,014
85
0
0
85
8,221
4,351
6,089
6,483
448
0
0
448
City of Yakima
10 - 2
112,954
600,418
513,857
199,515
Terrace Heights/Union Gap
2 2 4
62,405
292,630
211,309
143,725
Sub -total Receivables
249 388 556
870,570
2,064,123
2,171,190
763,503
Gambling Tax
- 20 -
20,214
228,027
228,627
19,614
Total
249 408 556
$890,784
$2,292,150
$2,399,817
$783,117
Installment Receivables
SIED Loans / Contributions
LID Assessments
Sub -total Installment Receivables
Approximate Original
Billings Principal
M Q A Balance
1 $372,500
175 1,773,787
176 1 $2,146,287
(1) Billed annually in July of each year.
Legend: M= Monthly Q= Quarterly A= Annually
INSTALLMENT ACCOUNTS
EXHIBIT I
Current to
90 Days
Over
90 Days
Status
Over
120 Days
To
Collection
To
Legal
$0
$0
$1,000
$13,246
$0
1,881
0
589
9,620
23,954
0
0
0
64
0
484
0
100
1,749
0
100
0
0
300
0
15,159
574
596
6,957
0
98,372
25,169
1,369
0
0
211,614
50
350
0
0
0
0
0
85
0
1,351
368
0
4,764
0
0
0
0
448
0
168,694
0
17,253
13,568
0
143,725
0
0
0
0
641,381
26,161
21,258
50,799
23,954
0
0
3,418
16,197
0
$641,381
$26,161
$24,675
$66,996
$23,954
Beginning
Interest &
Quarterly Activity
Ending
Prinicpal
Past Due
$0
Total
Principal
Balance
Principal
Interest
Payments
Balance
$98,970
$0
$0
$0
$98,970
529,139
n/a
n/a
27,500
501,639
$628,109
$0
$0
$27,500
$600,609
Page 4 of 6
Delinquent
Interest &
Total
Principal
Penalties
Past Due
$0
$0
$0
42,467
42,777
85,244
$42,467
$42,777
$85,244
EXHIBIT II
City of Yakima
SUMMARY OF GAMBLING TAX DELINQUENCY
(as of June 30, 2013)
(A) Account(s) Sent to Collection:
410 Restaurant (1st 2nd & 3rd Qtr03)
Michael's Tavern Qud, 3rd &4th Qtr08)
Minda Lanes (3rd & 4th Qtr2009 11st - 4th Qtr 10)
Total (Including penalties)
(C) Account(s) With Payment Arrangements:
Brews & Cues (1st - 4th Qtr 10)
Total (Including penalties)
Total
Page 5 of 6
$3,837
8,082
4,277
16,197
3,418
3,418
$19,614
EXHIBIT III
City of Yakima
SIED LOANS SUMMARY
(as of June 30, 2013)
Original
Beginning
Quarterly Activity
Ending
Delinquent
Loan
Principal
Amount Billedn)
Principal
Total
Acct. # Amount
Balance
Principal Interest Payments
Balance
Principal Interest Past Due
McAllister Field /Italstone 5024 $214,000
$90,144
$0 $0 $0
$90,144
$0 $0 $0
Total $214,000
$90,144
$0 $0 $0
$90,144
$0 $0 $0
(1) Annual loan payments due December 1st.
EXHIBIT IV
Page 6 of 6
LID ASSESSMENT RECEIVABLES
(as of June 30, 2013)
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
$29,338 $0
$29,338
$120
$20
$140
1052
- Willow Area Watermain
2
571 0
571
571
619
1,190
1056
- S. 7th, 8th, & 9th Avenue Sewer
21
32,901 1,733
31,168
1,862
1,187
3,049
1057
- N. 84th Avenue & Hawthorne Drive Sewer
9
43,821 13,716
30,105
10,499
14,150
24,649
1058
- N. 95th Avenue, 94th Place, W. Yakima Avenue
Sewer 18
40,458 5,229
35,229
8,837
10,588
19,425
1060
- N. 85th Avenue & Kail Drive Sewer
10
104,473 6,130
98,343
5,185
4,134
9,319
1061
- Simpson Lane Sewer
56
254,259 692
253,567
15,393
12,079
27,471
Total
139
$505,821 $27,500
$478,321
$42,467
$42,777
$85,244
Page 6 of 6