HomeMy WebLinkAbout03/18/2014 05C 2013 4th Quarter Accounts Receivable Status ReportBUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
AGENDA STATEMENT
Item No.
For Meeting of: 3/18/2014
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ITEM TITLE:
SUBMITTED BY:
SUMMARY EXPLANATION:
4th Quarter 2013 Accounts Receivable Status Report.
Cindy Epperson, Director of Finance and Budget, 576-6771
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 December
31, 2013 is $408,482 which includes $372,703 for General Receivables and $35,778 for
Gambling Taxes. The outstanding balance for Installment Accounts that have been billed as of
December 31, 2013 is $102,092 which is for LID Assessments.
Resolution:
Other (Specify): Report
Contract: Contract Term:
Start Date: End Date:
Amount:
Ordinance:
Item Budgeted: NA
Funding Source/Fiscal
Impact:
Strategic Priority:
Insurance Required? No
Mail to:
Public Trust and Accountability
Phone:
APPROVED FOR
SUBMITTAL:
RECOMMENDATION:
Accept Report
ATTACHMENTS:
Description
City Manager
Upload Date
Accts Receivable Status Report - 4th Qtr 2013 3/10/2014
Type
Cover Memo
City of Yakima
FINANCE DEPARTMENT
STAFF REPORT
March 18, 2014
SUBJECT: Accounts Receivable Status Report
4th 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 December 31, 2013.
CENTRAL BILLING ACCOUNTS RECEIVABLE
Exhibit I is a summary by category (type) of the accounts billed through Central Receivables as of
December 31, 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 5
RECURRING RECEIVABLES
Downtown Yakima Business Improvement District-Annually/Quarterly (DYBID) - This
assessment began in December 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 $11,733 in the collection column is for 67 accounts.
Quarterly Charges - The $9,918 in the collection column is for 27 accounts.
Quarterly Legal Charges - The $3,194 in the legal column is for 1 quarterly past due account.
The owner of this account is working with the city directly to get the account up to date.
Fire Alarm Monitor (FAM) - There are two accounts in collection totaling $64.
Front Street Business Improvement Assessment (FSBI) - A total of eight accounts are in
collection, totaling $1,780.
Fruitvale Canal Billing - There is a separate irrigation fee for customers connected directly to the
Fruitvale Canal. 50 accounts are billed annually. The $250 in the collection column is for four
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 $7,630 in the collection column is for 52 accounts; 49 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)/ParkingAssessments - The $72.50 in the
collection column is for three 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 $226 in collection is for the remaining two accounts.
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Water/Wastewater Invoices and Connections - The $11,544 in collection is for 17 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 $179,588 in gambling tax revenue bringing the year to date total
collected to $835,613 or 96.3% of the 2013 budget.
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 $3,208 is being sent to collection due to payment
arrangements not being consistently kept. The final account is delinquent and being processed
for late payments in the amount of $13,166, which will be followed up on as needed.
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 there were no current accounts, as the last one was paid off in 2013.
Local Improvement District (LID) -Exhibit III 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 $51,527. When interest
and penalties of $50,565 are added, the total amount past due is $102,092.
Page 3 of 5
Recurring Receivables
Approximate
Billings
M Q A
ACCOUNTS RECEIVABLE
(as of December 31, 2013)
CENTRAL BILLING ACCOUNTS RECEIVABLE
Quarterly Activity Status
EXHIBIT I
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)
Quarterly (DYBID)
Fire Alarm Monitor (FAM)
Front Street Business Impr (FSBI)
Fruitvale Canal Billing (FC)
Miscellaneous
Intergovernmental
Traffic Eng./ Engineering
Parking & Bus Impr Assess (PBIA)
Parks & Recreation (WEED)
Police Inmate Medical Reimb
Water/WW Invoice & Connections
City of Yakima
Terrace Heights/Union Gap
Sub -total Receivables
Gambling Tax
Total
Installment Receivables
250
90
20
475
50
100 -
125 25 25
2 1
10 -
10 2
2 2 4
$12,883 $0 $750 $12,133 $0 $0 $400 $11,733 $0
31,347 33,671 49,729 15,289 1,167 0 1,011 9,918 3,194
64 0 0 64 0 0 0 64 0
2,183 984 987 2,180 0 300 100 1,780 0
350 0 100 250 0 0 0 250 0
33,801 49,449 69,884 13,366 5,255 196 286 7,630 0
268,402 450,353 669,583 49,172 42,024 7,123 25 0 0
620 100 50 670 50 100 520 0 0
73 0 0 73 0 0 0 73 0
24,796 11,078 26,712 9,162 4,398 0 0 4,764 0
448 0 182 266 0 0 0 266 0
176,969 726,364 723,457 179,876 109,905 0 58,428 11,544 0
67,923 235,290 213,010 90,203 90,203 0 0 0 0
249 388 556
- 20 -
249 408 556
619,858 1,507,288 1,754,443 372,703 253,002 7,719 60,769 48,020 3,194
19,554 195,813 179,588 35,778 0 0 13,166 19,404 0
$639,412 $1,703,100 $1,934,031 $408,482 $253,002 $7,719 $73,935 $67,424 $3,194
Approximate
Billings
M Q A
INSTALLMENT ACCOUNTS
Original Beginning
Principal Prinicpal
Balance Balance
Quarterly Activity
Total
Principal Interest Payments
Ending Delinquent
Principal Interest & Total
Balance Principal Penalties Past Due
SIED Loans/ Contributions (1)
LID Assessments
Sub -total Installment Receivables
175
- 175
$0 $0
1,773,787 471,332
$1,773,787 $471,332
$0 $0 $0
n/a n/a 24,256
0 $0 $24,256
$0 $0 $0 $0
447,076 51,527 50,565 102,092
$447,076 $51,527 $50,565 $102,092
(1) Billed annually in July of each year.
Legend: M = Monthly Q= Qua rte rly A=Annually
Page 4 of 5
EXHIBIT II
City of Yakima
SUMMARY OF GAMBLING TAX DELINQUENCY
(as of December 31, 2013)
(A) Account(s) Sent to Collection:
410 Restaurant (1st 2nd & 3rd Qtr 03)
Michael's Tavern (2nd, 3rd & 4th Qtr 08)
Minda Lanes (3rd & 4th Qtr 2009/1st - 4th Qtr 10)
Brews &Cues (1st -4th Qtr10)
Total (Including penalties)
$3,837
8,082
4,277
3,208
19,404
(B) Delinquent Account(s) Notified by Letter:
Michael's Tavern (1st -4th Qtr13) 13,166
(C) Account(s) With Payment Arrangements: -
Total $35,778
EXHIBIT III
LID ASSESSMENT RECEIVABLES
(as of December 31, 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 21 $26,684 $13,115 $13,569 $0 $0 $0
1052 - Willow Area Watermain 2 571 0 571 571 681 1,251
1056 - S. 7th, 8th , & 9th Avenue Sewer 20 30,377 9,316 21,061 2,793 1,459 4,252
1057 - N. 84th Avenue & Hawthorne Drive Sewer 9 30,105 (0) 30,105 14,025 17,882 31,908
1058 - N. 95th Avenue, 94th Place, W. Yakima Avenue Sewer 17 32,263 1,528 30,735 8,954 11,146 20,099
1060 - N. 85th Avenue & Kail Drive Sewer 10 92,640 216 92,424 6,281 4,639 10,919
1061 - Simpson Lane Sewer 54 235,372 82 235,290 18,904 14,759 33,663
Total 133 $448,012 $24,256 $423,756 $51,527 $50,565 $102,092
Page 5 of 5