HomeMy WebLinkAbout09/15/2009 08B Accounts Receivable Status Report - 2nd Quarter 2009 BUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
• AGENDA STATEMENT
Item No. a-
For Meeting of September 15, 2009
ITEM TITLE: Accounts Receivable Status Report - 2nd Quarter 2009
SUBMITTED BY: Finance Department
CONTACT PERSON/TELEPHONE: Cindy Epperson, Deputy Director of Acct/Budget, 575 - 6070(;
SUMMARY EXPLANATION:
We are respectfully submitting the accounts receivable report as of June 30, 2009. This
report lists all accounts receivable balances handled through Central Billing. (Includes:
Gambling tax, HUD Section 108, SIED Loans, LID's and numerous other misc.
receivables.)
The report has the following components:
• • Staff Report.
• Exhibit I - Central Billing Accounts Receivable Summary.
(Includes total amounts billed and collected during the quarter.) •
• Exhibit H - Gambling Delinquency Detail
• Exhibit III -- SIED Loans Summery
• Exhibit IV - Local Improvement District (LID) Receivables
The balance of outstanding Receivables billed through Central Billing as of
June 30, 2009 is: Gambling Taxes - $175,768; Section 108 Loans - $7,150; SIED Loans -
$64,242; LID Assessments $345,095. (Including delinquencies of $22,430). Remaining
Central Receivables $481,819 for a grand total of $1,074,074.
Resolution Ordinance Other (Specify) Report
Contract Mail to (name and address):
Phone:
Funding Source N/A
APPROVED FOR SUBMITTAL:
City Manager
STAFF RECOMMENDATION: Accept Report.
•OARD /COMMISSION /COMMITTEE RECOMMENDATION:
COUNCIL ACTION:
Agenda Statement 2nd Qtr 09 09/10/2009
Page 1 of 1
CITY OF YAKIMA
FINANCE DEPARTMENT
STAFF REPORT
September 15, 2009
SUBJECT: Accounts Receivable Status Report
2nd Quarter 2009
SUBMITTED BY: Finance Department
CONTACT PERSON: Cindy Epperson, Deputy Director of Acctg & Budgeting
This report reflects the status of Central Billing Accounts Receivable at June 30, 2009.
City's Central Billing Accounts Receivable
A summary of each category (type) of account billed through Central Receivables, by frequency
� f billing, the number of customers, the balance at the beginning of the reporting period, the
quarterly activity of billings and payments and the aged receivable balance in each category as
of .June 30, 2009, is displayed in Exhibit 1.
Each category billed has different collection remedies available. For example, Sewer contracts,
and Local Improvement District assessments which remain unpaid, can become a lien against
the real property to which the assessment is associated. Other billing categories, however, such
as traffic, miscellaneous, and parks billings, do not become a lien and in some instances the
City must use a collection agency or other collection action to enforce payment.
On the following pages, we provide narrative information regarding those accounts that are
more notable in size, aged at least 120 days, have been placed with the collection agency, are
currently being pursued through legal proceedings, or are determined by the City's collection
agency to be uncollectable. If a determination is made by the City's collection agency that an
account is uncollectable, it is normally a result of the account being beyond the statute of
limitations for collection, the agency is unable to locate the party or the firm has gone bankrupt.
At this point, after all collection options are exhausted, an account is recommended for write- ,
off to City Council. Once an item has been billed it takes Council action to remove it from our
records.
Downtown Yakima Business Improvement District - Quarterly /Annually (DYBID) — This is a
em ew assessment that became effective September 2008, and replaces the Parking & Business
provement Assessment. The new DYBID is billed quarterly to all property/business owners
in the City's Central Business District. In addition to the quarterly billing for property/business
Staff Report 2nd Qtr 09 /10/2009
Page 1 of 3
owners, individual businesses located in this area receive an annual DYBID billing. The first 1)
annual charge was billed on 1/29/09. Annual Charges -The $5,750 in the "Over 120 Days"
column represents 59 accounts. Quarterly Charges- Currently there are no past due accounts.
Fire Alarm Monitor (FAM) - The $202.50 in the "Collection" column represents two accounts.
Front Street Business Improvement Assessment (FSBI) - The $245.14 in the "Collection" column
represents four accounts.
Fruitvale Canal Billing - There is a separate irrigation fee for customers connected directly to
the Fruitvale Canal, which involves billing 50 accounts annually. The $125:00 in the
"Collection" column represents three accounts.
Miscellaneous Billing - The billings under this category are mainly for transit bus passes and
refuse charges. The $7,516.10 in the "Collection" column represents sixty -two accounts; sixty
for refuse bin charges, one for lost video equipment and one for daim reimbursement.
Traffic Engineering/Engineering Billing - The $90.00 in the "Collection" column represents two
accounts for plans & specs.
Parking and Business Improvement Assessment (PBIA) - The $847.42 in the "Collection" 411)
column represents twenty-six charges, which are being pursued by a collection agency P tY g� g P Y g cY on
behalf of the City. This PBIA expired in April 2008 and has been replaced by the Downtown
Yakima Business Improvement District.
Parks and Recreation Billing - The $2,341.25 in the "Collection" column represents six accounts;
five are for park use fees and one for building rental. The $480.00 in the "Over 120 Days"
column represents one account.
Police Inmate Medical Reimbursement - In May 1999, the City started billing former inmates
for medical costs incurred while in custody. At the Municipal Court study session in January,
2001, Council determined that performing this billing was not cost effective, and directed that
this billing process be stopped. The 11 remaining accounts which have not yet met the write -off
criteria have a balance of $7,905.92 and are currently in collection.
Section 108 Loans - The $7,150.00 in the "Over 120 Days" column represents two annual
custodial fees.
Water -Sewer Invoices and Contract - The $29,291.81 in the "Collection" column are for
Water /Sewer invoices /contracts and fire hydrant meter charges, damages and utility back
billings sent to collection agency for follow up. The $900.80 in the "Over 120 Days" column is
for two accounts. The $3,211.09 in the "To Legal" column is for one utility back billing charge.
This customer has filed for bankruptcy 10/7/08 and will be included on the 2009 council write -
off list.
Staff Report 2nd Qtr 09 09 /10/2009
Page 2 of 3
Gambling Tax
During the second quarter 2009, $259,299 in gambling tax payments were received for the first
quarter 2009 gambling period, bringing the year -to -date total to $507,427. This is 54% of the
2009 budget of $932,000.
Gambling Tax Delinquencies - Exhibit II details the status of delinquent gambling tax accounts.
The delinquent accounts of three gambling establishments, totaling $12,694, have been sent to
collections. Four establishments totaling $2,254 have been notified by letter of their
delinquency. One account owes the City $160,819.30 in past due taxes; this account has been
forwarded to the City Legal department for further action. (Note: In an ongoing effort to
determine responsibility on this account; it has been determined that due to bankruptcy filing
on 5/5/09, in Federal Bankruptcy Court, the City cannot take any action at this time. However;
the bankruptcy filing will be monitored for any changes.) Per e-mail notice from the Gambling
Commission on 9/29/08, this business has surrendered their gambling license.
The Gambling Commission is aware of these delinquencies and is routinely informed of any
status changes. As soon as a judgment is granted on any establishment, the Gambling
Commission can revoke a license.
S IED Loans
Yakima County administers a program entitled Supporting Investment in Economic
Development (SIED). Typically, the City uses this program which offers /2 grant and V2 loan for
infrastructure improvements, and enters into loan agreements with the companies that benefit
from the improvements, with a 5 -year amortization. As of June 30, 2009, there are no accounts
with delinquent balances due. Exhibit III summarizes the status of the outstanding SIED loans.
Local Improvement District (LID)
LID balances, like the SIED loans; are long -term receivables that have annual payments
(typically with a 10 -year amortization schedule). Exhibit IV summarizes the status of
outstanding LID receivables. The amounts considered delinquent are past due, while the
amounts considered current include both the long -term portion of the liability and any balance
currently billed, but not past the due date. The 2nd Qtr delinquent balance is $22,430, at
6/30/09. As an LID represents a lien against the property, and State law requires foreclosure
after 3 years assessments are past due. Finance Department will increase collection efforts on
delinquent accounts in 2009 in attempt to minimize possible foreclosures in the future. Legal is
notified of any delinquency that is 2 years in arrears.
S
Staff Report 2nd Qtr 09 /10/2009
Page 3 of 3
EXHIBIT I
City of Yaldma
CENTRAL BILLING ACCOUNTS RECEIVABLE
(as of June 30, 2009)
---- 2nd Quarter Activity --- ------------ - --- - I
Approximate New
Billings Beginning Invoices Ending Current to Over Over To To
I. C urr e nt M Q A Balance Billed Payments Balance 90 Days 90 Days 120 Days Collection Legal r
Downtown Yakima Business $ 13,500.00 $0.00 $ 7,750.00 $ 5,750.00 � $0.00 $0.00 $ 5,750.00 $0.00 $0.00
Improvement District 418
Downtown Yakima Business 265 5,891.08 42,371.13 38,866.52 9,395.69 j 6,661.34 2,734.35 0.00 0.00 0.00
Improvement District
Fire Alarm Monitor Billing 89 322.50 4,980.00 5,092.50 210.00 0.00 7.50 0.00 202.50 0.00
Front St Bus. Imp. Assess. 20 645.14 983.75 1,383.75 245.14 0.00 0.00 0.00 245.14 0.00
Fruitvale Canal Billing 50 137.50 3,510.00 1,462.50 2,185.00 2,060.00 0.00 0.00 125.00 0.00
Miscellaneous 61 185,691.00 331,485.12 453,067.86 64,108.26 56,592.16 0.00 0.00 7,516.10 0.00
Traffic Eng./ Engineering 1 4,240.00 330.00 260.00 4,310.00 4,220.00 0.00 0.00 90.00 0.00
Parking & Bus. Imp. Assess. 847.42 0.00 0.00 847.42 0.00 0.00 0.00 847.42 0.00
Parks & Rec. 6 16,994.44 20,142.18 26,314.94 10,821.68 7,824.43 176.00 480.00 2,341.25 0.00
Police Inmate Medical Reim. 7,905.92 0.00 0.00 7,905.92 0.00 0.00 0.00 7,905.92 0.00
Section 108 Loans 3 7,150.00 0.00 0.00 7,150.00 0.00 0.00 7,150.00 0.00 0.00 '
SIED Loans/ Contributions (1) 3 0.00 22,163.84 16,687.35 5,476.49 5,476.49 0.00 0.00 0.00 0.00
Water /Sewer Invoice & Con. 29 2 106,305.65 580,982.95 316,724.83 370,563.77 336,760.07 400.00 900.80 29,291.81 3,211.09
Sub Totals 97 374 476 349,630.65 1,006,948.97 867,610.25 488,969.37 419,594.49 3,317.85 14,280.80 48,565.14 3,211.09
Gambling Tax 21 176,414.05 258,652.32 259,298.69 175,767.68 0.00 0.00 2,254.03 12,694.35 160,819.30
Total 97 395 476 $526,044.70 $1,265,601.29 $1,126,908.94 $664,737.05 $419,594.49 $3,317.85 $16,534.83 $61,259.49 $164,030.39
Old:
onthly Q = Quarterly A = Annually (1) Total outstanding SIED 1.0/09 is $64,241.83. There are currently no delinquent accounts.
0
Exhibits 2nd Qtr 09 9/10/2009
III EXHIBIT II
City of Yakima
SUMMARY 'OF-GAMBLING TAX DELINQUENCY
(as of June 30, 2009)
•
Name 'Date Amount
(A) Account(s) Sent to Collection:
410 Restaurant 1st, 2nd & 3rd Qtr 03 $ 3,837.36
Hoops 1st &4th Qtr 08 774.59
Michael's Tavern 2nd, 3rd & 4th Qtr 08 8,082.40
Total (Including penalties) 12,694.35
(B) Account(s) Sent to Legal:
Thunderbird Casino 1st, 3rd & 4th Qtr 07 160,819.30
Total (Including penalties) 160,819.30
(C) Delinquent Account(s) Notified by Letter:
Brew & Cues 1st Qtr 09 355.10
0 .Hoops 1st Qtr 09 1,054:38
Lewisville Tavern 1st .Qtr 09 . 687.93
Minda Lanes 3rd & 4th Qtr 08 156.62
Total (Including penalties) 2,254.03
(D) .Account(s)'With Payment Arrangements
Total (Including penalties) -
- $175,767.68 -
Summary
(A) Sent to Collection 12,694.35
(B) Sent to Legal 160,819.30
(C) Delinquent Accounts Notified by Letter 2,254.03
(D) Accounts With Payment Arrangements
Total $175,767.68
Legend:
(1) Thunderbird Casino is also delinquent on their 1st & 2nd Qtr 08 taxes; due dates 4/30/08 & 7/31/08.
Refer to gambling tax narrative on pg 3 of this report for further information on this account.
0) (2) Brews & Cues was sent .a.past due notice 6/18/09.
(3) Hoops was sent a past due notice 6/18/09.
(4) Lewisville Tavern was sent a past due notice 5/5/09.
(5) . Minda Lanes was sent a collection notice 6/18/09.
Exhibits 2nd Qtr 09 8/21/2009
EXHIBIT III
City of Yakima
SIED LOANS SUMMARY
(as of June 30, 2009)
Original Beginning 2nd Quarter Activity --- Ending
Loan Principal - ---- Amount Billed (1) --- - Payments (u Balance Principal
Acct. # Amount Balance Principal Interest Other Principal Interest Other Amount Balance
Cascade Quality Molding 4594 $44,000.00 $15,140.26 $4,840.60 $635.89 $0.00 $0.00 $0.00 $0.00 $5,476.49 $15,140.26
Cub Crafters 5526 25,000.00 10,705.71 0.00 0.00 0.00 0.00 0.00 0.00 0.00 10,705.71
Yakima Air Terminal 5644 64,500.00 38,395.86 0.00 0.00 0.00 0.00 0.00 0.00 0.00 38,395.86
Totals $133,500.00 $64,241.83 $4,840.60 $635.89 $0.00 $0.00 $0.00 $0.00 $5,476.49 $64,241.83
(1) Annual loan payments, (i.e., principal and interest) are due:
(a) Cascade Quality Molding - June 1st
(b) Cub Crafters - April 1st
(c)Yakima Air Terminal - June 1st
Exhibits 098/21/2009
0 0 410
•
EXHIBIT IV
City of Yakima
LID ASSESSMENT RECEIVABLES
(as of June 30, 2009)
Outstanding Principal 2 nd Quarter Outstanding Principal
# of Beginning Balance I Principal I -- Ending Balance
LID # - Description Accts Current Delinqent Total Adds Payments Current Delinquent Total
1049 - N 1st Ave Paving Project 23 $89,375.28 $118.00 $89,493.28 $0.00 $0.00 $89,375.28 $118.00 $89,493.28
1052 - Willow Area Watermain 2 $0.00 570.80 $570.80 0.00 0.00 $0.00 570.80 570.80
1055 - North 85th Ave Sewer 1 $1,985.80. 0.00 $1,985.80 0.00 992.90 $992.90 0.00 992.90
1056 - S 7th, 8th , & 9th ave Swrmn 33 95,125.10 10,707.78 $105,832.88 0.00 6,517.64 $91,401.10 7,914.14 99,315.24
1057 - N 84th Ave & Hawthorne Dr Swrmn 11 78,584.80 7,548.24 $86,133.04 0.00 6,049.90 $72,534.90 7,548.24 80,083.14
1058 - N 95th Ave, 94th P1 W Yak Ave Swrmn 27 72,525.60 6,730.43. $79,256.03 0.00 4,616.13 $68,361.20 6,278.70. 74,639.90
Total $337,596.58' $25,675.25 $363,271.83 $0.00 $18,176.57 $322,665.38 $22,429.88 $345,095.26
Exhibits 2nd Qtr 09 8/21/2009