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Home My WebLink About11/05/2013 05C Accounts Receivable Status Report - 3rd Quarter 2013BUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDA STATEMENT Item No. For Meeting of: 11/5/2013 IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII ITEM TITLE: SUBMITTED BY: SUMMARY EXPLANATION: Accounts Receivable Status Report — 3rd Quarter 2013. Cindy Epperson, Director of Finance and Budget 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 11 -- 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, 2013 is $639,425, which includes $619,870 for General Receivables and $19,554 for Gambling Taxes. The current balance is $466,317, while $173,108 is more than 90 days past due. The outstanding balance for Installment Accounts that have been billed as of September 30, 2013 is $71,038, which is for LID Assessments. Resolution: Ordinance: Other (Specify): Report Contract: Contract Term: Start Date: End Date: Item Budgeted: Amount: Funding Source/Fiscal Impact: Strategic Priority: Public Trust and Accountability Insurance Required? No Mail to: Phone: APPROVED FOR SUBMITTAL: RECOMMENDATION: Accept Report ATTACHMENTS: Description ❑ 3rd Qtr 2013 Acct Receivable City Manager Upload Date 10/24/2013 Type Cover Memo SUBJECT: City of Yakima FINANCE DEPARTMENT STAFF REPORT November 5, 2013 Accounts Receivable Status Report 3rd 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 September 30, 2013. CENTRAL BILLING ACCOUNTS RECEIVABLE Exhibit I is a summary by category (type) of the accounts billed through Central Receivables as of September 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 $12,133 in the collection column is for 68 accounts. Quarterly Charges - The $9,667 in the collection column is for 27 accounts. Quarterly Legal Charges - The $18,036 in the legal column is for 8 quarterly past due accounts. The owners of these accounts are working with the city directly to get their accounts up to date, and are keeping their payment arrangements at this time. Fire Alarm Monitor (FAM) - There are two accounts in collection totaling $64. Front Street Business Improvement Assessment (FSBI) - A total of nine accounts are in collection, totaling $1,549. 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 $7,914 in the collection column is for 56 accounts; 53 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 1 Engineering Billing - This account is generally for sidewalk safety repairs, and currently has nothing in collection. Parking and Business Improvement Assessment (PBIA)/Parking Assessments - 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 $15,758 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 $197,785 in gambling tax revenue bringing the year to date total collected to $656,025 or 75.6%. 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 $3,358 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/i 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 there were no current accounts, as the last one was paid off during this time. 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 $34,745. When interest and penalties of $36,293 are added, the total amount past due is $71,038. Page 3 of 6 Recurring Receivables Approximate Billings M Q A EXHIBIT I ACCOUNTS RECEIVABLE (as of September 30, 2013) CENTRAL BILLING ACCOUNTS RECEIVABLE Quarterly Activity Status Beginning New Ending Current to Over Over To To Balance Billed Payments Balance 90 Days 90 Days 120 Days Collection Legal Downtown Yak Bus Impr Dist 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 (WIiW) 10 Police Inmate Medical Reimb Water/WW Invoice & Connections City of Yakima 10 - 2 Terrace Heights/Union Gap 2 2 4 Sub -total Receivables 249 388 556 Gambling Tax - 20 - Total 249 408 556 Installment Receivables $14,246 $0 $1,363 $12,883 $0 $0 $750 $12,133 $0 36,044 31,459 36,156 31,347 51 2,578 1,015 9,667 18,036 64 0 0 64 0 0 0 64 0 2,333 984 1,134 2,183 0 484 150 1,549 0 400 0 50 350 0 0 50 300 0 23,236 67,742 57,178 33,801 25,291 49 547 7,914 0 124,911 442,232 298,741 268,402 252,404 0 15,998 0 0 212,014 47,971 259,365 620 150 50 420 0 0 85 0 0 85 0 0 0 85 0 6,483 25,968 7,655 24,796 20,033 0 0 4,764 0 448 0 0 448 0 0 0 448 0 199,515 331,423 353,969 176,969 100,465 43,262 17,485 15,758 0 143,725 206,420 282,222 67,923 67,923 0 0 0 0 763,503 1,154,199 1,297,832 619,870 466,317 46,422 36,414 52,681 18,036 19,614 197,785 197,845 19,554 0 0 3,358 16,197 0 $783,117 $1,351,984 $1,495,677 $639,425 $466,317 $46,422 $39,772 $68,877 $18,036 Approximate Original Billings Principal M Q A Balance INSTALLMENT ACCOUNTS Beginning Quarterly Activity Ending Delinquent Prinicpal Total Principal Interest & Total Balance Principal Interest Payments Balance Principal Penalties Past Due SiED Loans/ Contributions (�) LID Assessments Sub -total Installment Receivables 1 - 175 $372,500 1,773,787 $93,525 $93,525 $1,721 $95,246 $0 $0 $0 $0 501,639 n/a n/a 30,307 471,332 34,745 36,293 71,038 - 176 $2,146,287 $595,164 $93,525 $1,721 $125,554 $471,332 $34,745 $36,293 $71,038 (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, 2013) (A) Account(s) Sent to Collection: 410 Restaurant (1st, 2nd &3rd Qtr03) $3,837 Michael's Tavern (2nd, 3rd &4th Qtr08) 8,082 Minda Lanes (3rd &4th Qtr 2009/1st - 4th Qtr10) 4,277 Total (Including penalties) 16,197 (C) Account(s) With Payment Arrangements: Brews & Cues (1st -4th Qtr10) Total (Including penalties) 3,358 3,358 Total $19,554 Page 5 of 6 Acct. # McAllister Field/Italstone 5024 $372,500 $93,525 Total $372,500 $93,525 City ofYaldma SIED LOANS SUMMARY (as of September 30, 2013) Original Beginning Loan Principal Amount Balance Quarterly Activity Amount Billed (r) Principal Interest Payments Ending Principal Balance EXHIBIT III Delinquent Total Principal Interest Past Due (1) Annual loan payments due December lst. $93,525 $1,721 $95,246 $0 $0 $0 $0 $93,525 $1,721 $95,246 $0 $0 $0 $0 LID ASSESSMENT RECEIVABLES (as of September 30, 2013) LID #- Description 1049 - N 1st Ave Paving Project 1052- Willow Area Watermain 1056 - S. 7th, 8th , & 9th Avenue Sewer 1057 - N. 84th Avenue & Hawthorne Drive Sewer 1058 - N. 95th Avenue, 94th Place, W. Yakima Avenue Sewer 1060 - N. 85th Avenue & Kail Drive Sewer 1061- Simpson Lane Sewer Total # of Accts Quarterly Principal Activity Beginning Ending Balance Payments Balance Delinquent Interest& Total Principal Penalties Past Due EXHIBIT IV 23 2 21 9 18 10 56 $29,338 571 31,168 30,105 35,229 98,343 253,567 $2,654 $26,684 0 571 791 30,377 0 30,105 2,966 32,263 5,702 92,640 18,195 235,372 $120 $20 $140 571 619 1,190 1,862 1,153 3,015 10,499 14,150 24,649 7,277 9,135 16,412 2,592 2,029 4,621 11,824 9,187 21,011 139 $478,321 $30,307 $448,013 $34,745 $36,293 $71,038 Page 6 of 6