HomeMy WebLinkAbout06/03/2014 05A 1st Quarter 2014 Accounts Receivable Status ReportBUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
AGENDA STATEMENT
Item No. 5.A.
For Meeting of: June 03, 2014
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SUMMARY EXPLANATION:
1st Quarter 2014 Accounts Receivable Status Report
Finance Department
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 March 31,
2014 is $556,626 which includes $525,114 for General Receivables and $31,512 for Gambling
Taxes. The outstanding balance for Installment Accounts that have been billed as of March 31,
2014 is $86,505 for LID Assessments.
Resolution:
Other (Specify): Report
Contract: Contract Term:
Start Date: End Date:
Amount:
Ordinance:
Item Budgeted:
Funding Source/Fiscal
Impact:
Strategic Priority:
Insurance Required? No
Mail to:
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RECOMMENDATION:
Accept Report
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Description
❑ 2014 1st Qtr A/R Report
City Manager
Upload Date
5/14/2014
Type
Cover Memo
City of Yakima
FINANCE DEPARTMENT
STAFF REPORT
June 3, 2014
SUBJECT: Accounts Receivable Status Report
1St Quarter 2014
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 March 31, 2014.
CENTRAL BILLING ACCOUNTS RECEIVABLE
Exhibit I is a summary by category (type) of the accounts billed through Central Receivables as of
March 31, 2014. 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 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 $11,833 in the collection column is for 68 accounts.
Quarterly Charges - The $10,603 in the collection column is for 32 accounts.
Quarterly Charges - The $3,194 in the legal column is for 1 past due account that was
working with the city directly to get the account up to date. Nine (9) accounts had made
payment arrangements and are paid, while one account is still in the legal process.
Fire Alarm Monitor (FAM) - There are two accounts in collection totaling $64.
Front Street Business Improvement Assessment (FSBI) - A total of ten accounts are in collection,
totaling $1,730.
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 some transit bus passes, refuse
charges and retiree premiums for health benefits, along with other truly miscellaneous one-time
charges. The $7,915 in the collection column is for 53 accounts; 50 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)IParkingAssessments - The $75 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 $266 in collection is for the remaining two accounts.
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Airport
This is the first quarter the City is reporting for the Airport receipts. Since the account data was
entered during the implementation of our new financial management system, there are no
accounts aged over 120 days.
Water/Wastewater Invoices and Connections - The $15,505 in collection is for 16 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 $238,187 in gambling tax revenue which is 27.0% of the 2014
budget of $881,500.
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 $3,208 is in the process of being sent to collection.
The final account has made payment arrangements starting in May and is currently caught up.
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
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 $43,218. When interest
and penalties of $43,286 are added, the total amount past due is $86,505.
Page 3 of 5
Recurring Receivables
Approximate
Billings
M Q A
ACCOUNTS RECEIVABLE
as of March 31, 2014
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
Airport
Water/WW Invoice & Connections
City of Yakima
Terrace Heights/Union Gap
Sub -total Receivables
Gambling Tax
Total
Installment Receivables
- 275
250
20
50
100 - -
600 25 25
2 1
20 -
350
75 - 2
4 4 1
11,933 $26,900 $18,725 $20,108 $8,175 $0 $100 $11,833 $0
14,781 31,339 28,697 17,422 2,641 424 560 10,603 3,194
64 0 0 64 0 0 0 64 0
2,080 984 650 2,413 334 250 100 1,730 0
250 0 0 250 0 0 0 250 0
8,150 271,403 257,260 22,293 14,143 78 157 7,915 0
0 899,650 614,570 285,080 285,080 0 0 0 0
570 150 0 720 150 0 570 0 0
73 0 0 73 0 0 0 73 0
7,997 12,422 11,282 9,137 1,140 3,233 0 4,764 0
266 0 0 266 0 0 0 266 0
6,396 180,175 163,600 22,971 16,575 6,396 0 0 0
24,268 781,289 728,398 77,158 52,890 0 8,762 15,505 0
90,203 239,058 262,102 67,160 67,160 0 0 0 0
1,151 300 353
- 20 -
1,151 320 353
167,030 2,443,369 2,085,285 525,114 440,112 10,382 10,250 53,002 3,194
35,779 233,920 238,187 31,512 0 0 12,108 16,197 0
$202,809 $2,677,289 $2,323,472 $556,626 $440,112 $10,382 $22,358 $69,198 $3,194
LID Assessments
Approximate
Billings
M Q A
175
INSTALLMENT ACCOUNTS
Original Beginning Quarterly Activity Ending
Principal Prinicpal Total Principal
Balance Balance Principal Interest Payments Balance
Delinquent
Interest & Total
Principal Penalties Past Due
1,773,787 447,076 n/a n/a 30,288 416,789
Page 4 of 5
43,218 43,286 86,505
EXHIBIT II
City of Yakima
SUMMARY OF GAMBLING TAX DELINQUENCY
(as of March 31, 2014)
(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)
Total (Including penalties)
$3,837
8,082
4,277
16,197
(B) Delinquent Account(s) Notified by Letter:
Brews &Cues (1st -4th Qtr10) 3,208
(C) Account(s) With Payment Arrangements:
Michael's Tavern (1st -4th Qtr13) 12,108
Total $31,512
LID ASSESSMENT RECEIVABLES
(as of March 31, 2014)
# of
LID # - Description Accts
Quarterly Principal Activity Delinquent
Beginning Ending Interest & Total
Balance Payments Balance Principal Penalties Past Due
EXHIBIT III
1049 - N 1st Ave Paving Project 21
1052 - Willow Area Watermain 2
1056 - S. 7th, 8th , & 9th Avenue Sewer 20
1057 - N. 84th Avenue & Hawthorne Drive Sewer 9
1058 - N. 95th Avenue, 94th Place, W. Yakima Avenue Sewer 17
1060 - N. 85th Avenue & Kail Drive Sewer 10
1061 - Simpson Lane Sewer 54
$13,569 $0 $13,569 $0 $0 $0
571 0 571 571 681 1,251
21,061 466 20,595 2,328 1,215 3,542
30,105 688 29,417 14,025 17,882 31,908
30,735 6,740 23,995 5,867 7,532 13,399
92,424 1,528 90,897 3,888 3,075 6,963
235,290 20,866 214,424 16,539 12,903 29,442
Total 133
$423,755 $30,288 $393,467 $43,218 $43,286 $86,505
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