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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 IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII 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. Page 2 of 5 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