HomeMy WebLinkAbout08/18/2015 05A 2nd Quarter 2015 Accounts Receivable Status ReportITEM TITLE:
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BUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
AGENDA STATEMENT
Item No. S.A.
For Meeting of: August 18, 2015
2nd 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 June 30, 2015 is $913,078
which includes $888,640 for General Receivables and $24,438 for Gambling Taxes. The outstanding balance
for Installment Accounts that have been billed as of June 30, 2015 is $70,141 for LID Assessments.
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D 2nd Qtr 2015 Accts. Rec Report 8/10/2015
City of Yakima
FINANCE DEPARTMENT
STAFF REPORT
August 18, 2015
SUBJECT: Accounts Receivable Status Report
2nd 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 June 30, 2015.
CENTRAL BILLING ACCOUNTS RECEIVABLE
Exhibit I is a summary by category (type) of the accounts billed through Central Receivables as of
June 30, 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.)
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 $11,100 in the collection column is for 63 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 $800.
Fruitvale Canal Billing — There is a separate irrigation fee for customers connected directly to the
Fruitvale Canal. 50 accounts are billed annually. The $200 in the collection column is for threee
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 $4,642 in the collection column is for 46 accounts primarily 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 $671,575, and consists primarily of the annual YAKCORPS billing (about $205,000) and
the second quarter of fire service for Union Gap (about $300,000). It should be noted that entities
participating in YAKCORPS are given the option to pay the entire invoice when received, or split
it in half. The balance in the "Over 120 Day" column represents the balance for YAKCORPS.
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.
Page 2 of 5
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 $8,863 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 $221,651 in gambling tax revenue — 25.6% of the 2015 budget.
Gambling Tax Delinquencies — Exhibit II details the status of delinquent gambling tax accounts.
One delinquent account, totaling $23,802, has been sent to collection. One account with payment
arrangements has a total of $636 remaining due.
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 interest. As of
the end of the quarter, the delinquent principal balance is $48,468. When interest of $21,673 is
added, the total amount past due is $70,141.
Page 3 of 5
Recurring Receivables
ACCOUNTS RECEIVABLE
as of June 30, 2015
CENTRAL BILLING ACCOUNTS RECEIVABLE
Approximate
Billings
M Q A
Quarterly Activity
Status
EXHIBIT I
Beginning New Inv Ending
Balance Billed Payments Balance
Current to Over Over
90 Days 90 Days 120 Days Collection Legal
Downtown Yak Bus Impr Dist
Annual (DYBIDA) - - 288 $ 21,682 $ 30,908 $ 31,800 $ 20,790 $ - $ - $ 9,690 $ 11,100 $
Quarterly (DYBID) - 250 - 12,641 (2,873) 15,513 2,929 (659) 3,580 9,663
Fire Alarm Monitor (FAM) - - - 64 64 64
Front Street Business Impr (FSBI) - 25 - 1,818 1,384 1,000 2,201 484 918 800
Fruitvale Canal Billing (FC) - - 50 265 4,160 3,850 575 300 75 200
Miscellaneous 100 - - 21,751 39,470 24,590 36,631 17,869 30 14,175 4,642
Intergovernmental 600 25 25 600,765 1,407,344 1,336,533 671,575 463,718 2,803 205,054 -
Traffic Eng./ Engineering 2 1 - 1,070 200 50 1,220 200 50 970 -
Parking & Bus Impr Assess (PBIA) - - - 20 255 255 20 20
Parks & Recreation (WEED) 15 - - 8,624 111 111 8,624 1,204 7,420
Police Inmate Medical Reimb (IMED) - - - 211 211 211
Airport 350 - - 31,875 166,148 174,527 23,496 9,421 999 10,104 358 2,615
Water/WW Invoice & Connections
City of Yakima 75 - 2 209,896 256,986 424,446 42,436 24,951 3,874 4,767 8,863
Terrace Heights/Union Gap 4 4 1 71,464 335,976 342,156 65,285 65,285 -
Sub -total Receivables 1,146 305 366 982,143 2,242,943 2,336,447 888,640 585,156 7,098 250,536 43,340 2,615
Gambling Tax - 20 - 30,894 221,651 221,651 24,438 - 636 23,802
Total 1,146 325 366 $1,013,037 $2,464,594 $2,558,098 $ 913,078 $585,156 $ 7,098 $251,172 $ 67,142 $ 2,615
INSTALLMENT ACCOUNTS
Installment Receivables
Approximate Original Beginning Quarterly Activity Ending Delinquent
Billings Principal Prinicpal Total Principal Interest & Total
M Q A Balance Balance Principal Interest Payments Balance Principal Penalties Past Due
LID Assessments
- 175 $ 1,773,787 $ 321,604 n/a n/a $ 26,517 $ 295,087 $ 48,468 $ 21,673 $ 70,141
(1) Billed annually in July of each year.
Legend: M= Monthly Q = Quarterly A= Annually Page 4 of 5
EXHIBIT II
City of Yakima
SUMMARY OF GAMBLING TX DELINQUENCY
(as of June 30, 2015)
Account(s) Sent to Collection:
Michael's Tavern (2nd, 3rd &4th Qtr08)
Michael's Tavern (1st -4th Qtr 13)
Michael's Tavern (1st - 2nd Qtr 14)
$ 8,082
11,938
3,781
23,802
Account With Payment Arrangements:
Brews 8z Cues (1st -4th Qtr 10) 636
Total
LID ASSESSMENT RECEIVABLES
(as of June 30, 2015)
# of
LID # - Description Accts
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
Total 102
$ 24,438
Quarterly Principal Activity
EXHIBIT III
Delinquent
Beginning Ending
Balance Payments Balance
$ 499 $ 100 $ 399
10,598 200 10,398
24,577 1,605 22,972
17,478 4,424 13,054
77,526 8,086 69,440
190,926 12,102 178,824
$ 321,604 $ 26,517 $ 295,087
Page 5 of 5
Total
Principal Interest Past Due
$ 399 $ 28 $ 427
3,013 407 3,420
14,315 7,433 21,748
6,715 3,560 10,275
2,150 1,144 3,294
21,875 9,101 30,976
$ 48,468 $ 21,673 $ 70,141