HomeMy WebLinkAbout11/18/2014 05A 3rd Quarter 2014 Accounts Receivable Status ReportBUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
AGENDA STATEMENT
Item No. 5.A.
For Meeting of: November 18, 2014
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ITEM TITLE:
SUBMITTED BY:
SUMMARY EXPLANATION:
3rd Quarter 2014 Accounts Receivable Status Report
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 Tax Delinquency Detail
Exhibit III --Local Improvement District (LID) Receivables
The outstanding balance of recurring receivables billed through Central Billing as of September
30, 2014 is $1,213,765 which includes $1,178,234 for General Receivables and $35,532 for
Gambling Taxes. The outstanding balance for Installment Accounts that have been billed as of
September 30, 2014 is $79,985 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:
Public Trust and Accountability
Phone:
APPROVED FOR
SUBMITTAL:
RECOMMENDATION:
Accept Report
City Manager
ATTACHMENTS:
Description
3rd qtr 2014 Accounts Receivable Report
Upload Date
11/13/2014
Type
Cover Memo
City of Yakima
FINANCE DEPARTMENT
STAFF REPORT
November 18, 2014
SUBJECT: Accounts Receivable Status Report
3rd Quarter 2014
SUBMITTED BY: Finance Department
CONTACT PERSON: Cindy Epperson, Director of Finance and Budget
The topic of this report is the status of Central Billing Accounts Receivables and Installment
Accounts as of September 30, 2014.
CENTRAL BILLING ACCOUNTS RECEIVABLE
Exhibit I is a summary by category (type) of the accounts billed through Central Receivables as of
September 30, 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 $14,541 in the collection column is for 81 accounts.
Quarterly Charges - The $11,150 in the collection column is for 31 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.
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 $2,297.
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 $8,290 in the collection column is for 58 accounts; 55 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 $73 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 $7,552 in the collection column is for five
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
The past due accounts are being reviewed for appropriate action. The Legal department is
following up on one account in the amount of $2,615 which is a delinquent lease.
Water/Wastewater Invoices and Connections - The $12,241 in collection is for 17 Water/Sewer
invoices/contracts and fire hydrant meter charges, damages to Water/Sewer equipment, and
utility back billings.
GAMBLING
This quarter the City received $212,842 in gambling tax revenue which is 24.0% of the 2014
budget of $881,500.
Gambling Tax Delinquencies - Exhibit II details the status of delinquent gambling tax accounts.
Two delinquent accounts, totaling $11,920, have been sent to collection. One account with
previous payment arrangements and in arrears $1,936 is currently making payments, but has
submitted no quarterly payments for 2014. The final account's 2013 delinquent payments and
penalties ($13,439) are being sent to collection, and a collection letter for their 2014 delinquent
payments is being posted.
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 $39,449. When interest
and penalties of $40,536 are added, the total amount past due is $79,985.
Page 3 of 5
Recurring Receivables
Approximate
Billings
M Q A
ACCOUNTS RECEIVABLE
as of September 30, 2014
CENTRAL BILLING ACCOUNTS RECEIVABLE
Quarterly Activity Status
EXHIBIT I
Beginning New Invoices Ending Current to Over Over
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 (PBLA)
Parks & Recreation (WEED)
Police Inmate Medical Reimb (LIED)
Airport
Water/WW Invoice & Connections
Cit- of Yakima
Terrace Heights/Union Gap
Sub -total Receivables
Gambling Tax
Total
Installment Receivables
_ 27
250 -
20 -
50
100 -
600 25 25
2 1 -
350 - -
75 - 2
4 4 1
818,466 SO $3,425 515,041(53001 80 51,000 814,541 SO
18,453 55,337 59,107 17,683 1,152 0 2,187 11,150 3,194
64 0 0 64 0 0 0 64 0
2,797 1,084 1,200 2,681 0 334 50 2.297 0
1,535 0 1,225 310 I (50) 0 110 250 0
65,462 767,421 79,310 753,573 743,625 0 1,658 8,290 0
176,364 427,003 421,709 181,658 157,944 7523,639 0 0
820 5,644 5,544 920 50 50 820 0 0
73 0 0 73 0 0 0 73 0
10,152 3,730 2,601 11,282 ' 3,730 0 0 7,552 0
266 0 (0) 266 0 0 0 266 0
22,558 167,526 161,485 28,598 17,179 851 7,954 0 2,615
180,525 274,745 331,062 124,209: 80,312 2,274 29,382 12,241
41,504 305,489 305,116 41,877 I 41,877 0 0 0
0
0
1,146 300 353
- 20 -
539,038 2,010,979 1,371,783 1,178,234 1,045,319 3,584 66,800 56,723 5,808
35,532 212,842 212,842 35,532 0 0 23,612 11,920 0
1,146 320 353
$574,570 $2,223,821 $1,584,626 $1,213,765 $1,045,319 83,584 590,412 868,642 55,808
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
1,773,787 391,232 n=a n,'a 30,655 360,577
Page 4 of 5
39,449 40,536 79,985
EXHIBIT II
City ofYakima
SUMMARY OF GAMBLING TAX DELINQUENCY
(as of September 30, 2014)
(A) Account(s) Sent to Collection:
410 Restaurant (1st, 2nd & 3rd Qtr 03)
Michaels Tavern (2nd, 3rd & 4th Qtr OS)
Total (Including penalties)
(B) Delinquent Account(s) Notified by Letter:
Brews & Cues (1s) - 4th Qtr 10)
(C) Account(s) With Payment Arrangements:
Michaels Tavern (/st - 4th Qtr 13)
Michaels Tavern (1st - 2nd Qtr 14)
Total
$3,837
8,082
1L920
1,936
13,439
8,237
21,676
535,532
EXHIBIT III
LID ASSESSMENT RECEIVABLES
(as of September 30, 2014)
of
LID - Description Accts
Quarterly Principal Activity
Beginning Ending
Balance Payments Balance
Delinquent
Interest & Total
Principal Penalties Past Due
1049 - N 1st Ave Paving Project 21
1052 - Willow Area Watermain 2
1056 - S. 7th, Sth, & 9th Avenue Sewer 20
1057 - N. 84th Avenue & Hawthorne Drive Sewer 9
1055 - 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 SO $13,569 $0 $0 $0
571 72 499 571 666 1,237
20,595 1,177 19,415 1,862 954 2,516
29,417 4,840 24,577 12,407 16,863 29,270
23,995 6,369 17,626 5,477 7,2S6 12,763
90,897 11,778 79,118 2,592 1,864 4,456
214,424 6,419 208,005 16,539 12,903 29,442
Total 133
5393,467 530,655 5362,812 539,449 540,536 579,985
Page 5 of 5