HomeMy WebLinkAbout06/16/2015 05B 1st Quarter 2015 Accounts Receivable Status ReportITEM TITLE:
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BUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
AGENDA STATEMENT
Item No. 5.B.
For Meeting of: June 16, 2015
1st Quarter 2015 Accounts Receivable Status Report
Cindy Epperson, Director of Finance & 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 II -- Gambling Delinquency Detail
Exhibit III -- Local Improvement District (LID) Receivables
The outstanding balance of recurring receivables billed through Central Billing as of March 31, 2015 is
$1,013,038 which includes $982,144 for General Receivables and $30,894 for Gambling Taxes. The
outstanding balance for Installment Accounts that have been billed as of March 31, 2015 is $101,234 for
LID Assessments.
Resolution: Ordinance:
Other (Specify):
Contract: Contract Term:
Start Date: End Date:
Item Budgeted: NA Amount:
Funding Source/Fiscal Impact: Most operating funds
Strategic Priority: Public Trust and Accountability
Insurance Required? No
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City Manager
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Description Upload Date
CI 1st Qtr 2015 AR 6/8/2015
Type
Cover Memo
City of Yakima
FINANCE DEPARTMENT
STAFF REPORT
June 16, 2015
SUBJECT: Accounts Receivable Status Report
1St Quarter 2015
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, 2015.
CENTRAL BILLING ACCOUNTS RECEIVABLE
Exhibit I is a summary by category (type) of the accounts billed through Central Receivables as of
March 31, 2015. 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.)
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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 $11,172 in the collection column is for 65 accounts.
Quarterly Charges — The $9,663 in the collection column is for 23 accounts.
Fire Alarm Monitor (FAM) — There are two accounts in collection totaling $64.
Front Street Business Improvement Assessment (FSBI) — A total of five accounts are in collection,
totaling $750.
Fruitvale Canal Billing — There is a separate irrigation fee for customers connected directly to the
Fruitvale Canal. 50 accounts are billed annually. The $225 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 $4,692 in the collection column is for 47 accounts for refuse bin charges.
Intergovernmental — This category includes billings to other governmental agencies, including
state agencies, counties, cities, school districts, and local police and fire departments. The current
balance is $572,159, and consists primarily of the annual YAKCORPS billing (about $210,000) and
the first quarter of fire service for Union Gap (about $296,000).
Traffic Engineering / Engineering Billing — This account is generally for sidewalk safety repairs,
and currently has nothing in collection.
Parking and Business Improvement Assessment (PBIA)/Parking Assessments — The $20 in the
collection column is for one account which is 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 $7,420 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 $211 in collection is for the one remaining account.
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Airport
The past due accounts are being reviewed for appropriate action. The $358 in the collection
column is for a vendor at the Airport. The Legal department is following up on one account in
the amount of $2,615 which is a delinquent lease.
The Water/Wastewater Invoices and Connections — The $8,938 in collection is for 12 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 $233,817 in gambling tax revenue — 27.0% of the 2015 budget.
Gambling Tax Delinquencies — Exhibit II details the status of delinquent gambling tax accounts.
One delinquent account, totaling $8,082, has been sent to collection. One account with payment
arrangements is current through December, with a total of $1,136 still due. The final account is
delinquent and being processed for late payments in the amount of $21,676, 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 1/2 grant and 1/2 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 $50,606. When interest
and penalties of $50,628 are added, the total amount past due is $101,234.
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Recurring Receivables
ACCOUNTS RECEIVABLE
as of March 31, 2015
CENTRAL BILLING ACCOUNTS RECEIVABLE
Approximate
Billings
M Q A
EXHIBIT I
Quarterly Activity Status
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 (PBIA)
Parks & Recreation (WEED)
Police Inmate Medical Reimb (IMED)
Airport
Water/WW Invoice & Connections
City of Yakima
Terrace Heights/Union Gap
Sub -total Receivables
Gambling Tax
Total
INSTALLMENT ACCOUNTS
Installment Receivables
LID Assessments
288
250 -
25
50
100 -
600 25 25
2 1
15 -
350 -
75 - 2
4 4 1
$13,472 $28,800 $20,590 $21,682 $9,660 $0 $850 $11,172 $0
13,613 30,788 31,760 12,641 426 (38) 2,590 9,663 0
64 0 0 64 0 0 0 64 0
1,584 1,184 950 1,818 484 0 584 750 0
265 0 0 265 0 0 40 225 0
20,691 32,088 31,028 21,751 5,373 697 10,988 4,692 0
76,664 1,455,899 931,798 600,765 572,159 840 27,765 0 0
1,020 848 798 1,070 100 50 920 0 0
20 0 0 20 0 0 0 20 0
9,044 12,299 12,719 8,624 0 0 1,204 7,420 0
211 0 0 211 0 0 0 211 0
2,373 163,683 134,180 31,875 21,537 1,189 6,177 358 2,615
170,204 402,204 362,512 209,896 197,347 625 2,986 8,938 0
55,349 308,783 292,668 71,464 71,464 0 0 0 0
1,146 305 366
20 -
364,572 2,436,576 1,819,004 982,144 878,551 3,363 54,104 43,512 2,615
30,894 233,817 233,817 30,894 0 0 22,812 8,082 0
1,146 325 366
$395,466 $2,670,392 $2,052,821 $1,013,038 $878,551 $3,363 $76,916 $51,594 $2,615
Approximate
Billings
M Q A
175
(1) Billed annually in July of each year.
Legend: M = Monthly Q= Qua rte rly A=Annually
Original Beginning Quarterly Activity Ending
Principal Prinicpal Total Principal
Balance Balance Principal Interest Payments Balance
$1,773,787 $340,541 n/a n/a $18,937 $321,604
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Delinquent
Interest & Total
Principal Penalties Past Due
$50,606 $50,628 $101,234
EXHIBIT II
City of Yakima
SUMMARY OF GAMBLING TX DELINQUENCY
(as of March 31, 2015)
Account(s) Sent to Collection:
Michael's Tavern (2nd, 3rd &4th Qtr08)
Account With Payment Arrangements:
Brews & Cues (1st -4th Qtr 10)
Account With Payment Arrangements:
Michael's Tavern (1st -4th Qtr 13)
Michael's Tavern (1st -2nd Qtr 14)
$8,082
1,136
13,439
8,237
21,676
Total $30,894.25
LID ASSESSMENT RECEIVABLES
(as of March 31, 2015)
#of
LID # - Description Accts
EXHIBIT III
Quarterly Principal Activity Delinquent
Beginning Ending Interest & Total
Balance Payments Balance Principal Penalties Past Due
1052 - Willow Area Watermain 2
1056 - S. 7th, 8th , & 9th Avenue Sewer 16
1057 - N. 84th Avenue & Hawthorne Drive Sewer 8
1058 - N. 95th Avenue, 94th Place, W. Yakima Avenue Sewer 13
1060 - N. 85th Avenue & Kail Drive Sewer 10
1061 - Simpson Lane Sewer 53
499 0 499 571 727 1,298
12,994 2,396 10,598 2,793 1,415 4,208
24,577 0 24,577 14,315 19,600 33,915
17,626 148 17,478 6,715 8,697 15,413
78,259 733 77,526 2,592 1,764 4,357
206,586 15,660 190,926 23,619 18,425 42,044
Total 102
$340,541 $18,937 $321,604 $50,606 $50,628 $101,234
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