HomeMy WebLinkAbout07/07/2009 09A Accounts Receivable Status Report - 1st Quarter 2009 BUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
AGENDA STATEMENT,
Item No. AA
For Meeting of Tuly 7, 2009
ITEM TITLE: Accounts Receivable Status Report — 1st Quarter 2009
SUBMITTED BY: Finance Department -
CONTACT PERSON/TELEPHONE: Cindy Epperson, Deputy Director of Acct/Budget, 575 -6070
Tim Jensen, Treasury Services Officer, 575t0
SUMMARY EXPLANATION: -
We are respectfully submitting the accounts receivable report as of March 31, 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 II -- 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
March 31, 2009 is: Gambling Taxes - $176,414; Section 108 Loans - $7,150; SIED Loans -
$64,242; LID Assessments $363,272. (Including delinquencies of $25,675). Remaining
Central Receivables $342,481 for a grand total of $953,559.
Resolution Ordinance Other (Specify) Report
Contract Mail to (name and address):
Phone:
Funding Source N/A
APPROVED FOR SUBMITTAL: y�
City Manager
STAFF RECOMMENDATION: Accept Report.
BOARD /COMMISSION /COMIVIITTEE RECOMMENDATION:
COUNCIL ACTION:
Agenda Statement 4th Qt< 08 06/19/2009
Page 1 of 1
CITY OF YAKIMA
FINANCE DEPARTMENT
STAFF REPORT
June 16, 2009
SUBJECT: Accounts Receivable Status Report
1st Quarter 2009
SUBMITTED BY: Finance Department
CONTACT PERSON: Cindy Epperson, Deputy Director of Acctg & Budgeting
Tim Jensen, Treasury Services Officer
This report reflects the status of Central Billing Accounts Receivable at March 31, 2009.
City's Central Billing Accounts Receivable
A summary of each category (type) of account billed through Central Receivables, by frequency
of 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 March 31, 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
new assessment that became effective September 2008, and replaces the Parking & Business
Improvement Assessment. The new DYBID is billed quarterly to all property/business owners
Staff Report 1st Qtr 09 06/19/2009
Page 1 of 3
in the City's Central Business District. In addition to the quarterly billing for property/business
owners, individual businesses located in this area receive an annual DYBID billing. The first
annual charge was billed on 1/29/09.
Fire Alarm Monitor (FAM) - The $202.50 in the "Collection" column represents two accounts.
Front Street Business Improvement Assessment (FSBI) - The $295.14 in the "Collection" column
represents four accounts. The $50.00 in the "Over 120 Days" column represents one account.
Fruitvale Canal Billing - There is a separate irrigation fee for customers connected directly to
the Fruitvale Canal, which involves billing 50 accounts annually. The $137.50 in the
"Collection" column represents four accounts.
Miscellaneous Billing - The billings under this category are mainly for transit bus passes and
refuse charges. The $10,148.58 in the "Collection" column represents sixty -five accounts; sixty-
three for refuse bin charges, one for lost video equipment and one for claim reimbursement.
The $291.63 in the "Over 120 Days" column represents three accounts.
Traffic Engineering/Engineering Billing - The $50.00 in the "Collection" column represents one
account for plans & specs.
Parking and Business Improvement Assessment (PBIA) - The $847.42 in the "Collection"
column represents twenty -six charges, which are being pursued by a collection agency 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 $3,303.25 in the "Collection" column represents nine
accounts; eight are for park use fees and one for building rental. The $2,400.00 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 $27,724.54 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 $3,211.09 in the "To Legal"
column is for two utility back billing charges.
Staff Report 1st Qtr 09 06119/2009
Page 2of3
Gambling Tax
During the first quarter 2009, $248,128 in gambling tax payments were received for the fourth
quarter 2008 gambling period. This is 27% 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 $9,274, have been sent to
collections. Four establishments totaling $6,321 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: collection of . these delinquent
taxes is complicated by a change in ownership. A demand letter from the City's Legal
Department has been sent to the current & former owners and was forwarded to the gambling .
commission, demanding payment. Follow up discussions are in process; however, payment of
the delinquent taxes will likely take an extended period of time. Legal is reviewing various
collection options.) 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.
SIED Loans
Yakima County administers a program entitled Supporting Investment in Economic
Development (SIED). Typically, the City uses this program which offers 1/2 grant and 1 /z loan for
infrastructure improvements, and enters into loan agreements with the companies that benefit
from the improvements, with a 5 -year amortization. As of March 31, 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 1st Qtr delinquent balance is $25,675, at 3/31/09.
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.
Staff Report 1st Qtr 09 06/19/2009
Page 3 of 3
EXHIBIT I
City of Yakima
CENTRAL BILLING ACCOUNTS RECEIVABLE
(as of March 31, 2009)
1st Quarter Activity
Approximate New
Billings Beginning Invoices Ending Current to Over Over To To
I. Current M Q A Balance Billed Payments Balance a 90 Days 90 Days 120 Days Collection Legal
Downtown Yakima Business
$0.00 $ 42,000.00 $ 28,500.00 $ 13,500.00 $ 13,500.00 $0.00 $0.00 $0.00 $0.00
Improvement District 418
Downtown Yakima Business 3,438.71 42,421.54 39,969.17 5,891.08 4,548.21 1,342.87 0.00 0.00 0.00
Improvement District 265
Fire Alarm Monitor Billing 89 - 262.50 4,980.00 4,920.00 322.50 120.00 0.00 0.00 20230 0.00
Front St Bus. Imp. Assess. 20 495.14 983.75 833.75 645.14 200.00 100.00 50.00 295.14 0.00
Fruitvale Canal Billing , 50 137.50 0.00 0.00 137.50 0.00 0.00 0.00 137.50 0.00
Miscellaneous 65 92,738.78 494,551.36 401,599.14 185,691.00 175,165.29 85.50 291.63 10,148.58 0.00
Traffic Eng./ Engineering 0 14,885.00 0.00 10,645.00 4,240.00 4,150.00 40.00 0.00 50.00 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. 5 8,151.75 11,577.42 2,734.73 16,994.44 10,761.19 530.00 2,400.00 3,303.25 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 (t) 3 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Water /Sewer Invoice & Con. 19 2 142,883.06 319,310.57 355,887.98 106,305.65 73,917.67 1,452.35 0.00 27,724.54 3,211.09
Sub Totals 89 374 476 278,895.78 915,824.64 845,089.77 349,630.65 282,362.36 3,550.72 9,891.63 50,614.85 3,211.09
Gambling Tax 21 175,662.03 248,879.78 248,127.76 176,414.05 0.00 0.00 6,321.14 9,273.61 160,81930
I
Total 89 395 476 $454,557.81 $1,164,704.42 $1,093,217.53 $526,044.70 $282,362.36 $3,550.72 $16,212.77 $59,888.46 $164,030.39
- - o i
Legend:
M = Monthly Q = Quarterly A = Annually (1) Total outstanding SIED loans at 3/31/09 is $64,241.83. There are currently no delinquent accounts.
Exhibits 1st Qtr 09 6/19/2009
EXHIBIT II
City of Yakima
SUMMARY OF GAMBLING TAX DELINQUENCY
(as of -March 31, 2009)
Name Date Amount
(A) Account(s) Sent to Collection:
410 Restaurant 1st, 2nd & 3rd Qtr 03 $ 3,837.36
Hoops 1st & 3rd Qtr 08 2,310.25
Michael's Tavern 2nd Qtr 08. 3,126.00
Total (Including penalties) 9,273.61
(B) Accounts) 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 4th Qtr 08 149.82
Hoops 4th Qtr 08 275.20
Michael's Tavern 4th Qtr 08 4,956.40
Minda Lanes 3rd & 4th Qtr 08 939.72
Total (Including penalties) : 6,321.14
(D) Account(s) With Payment Arrangements
Total (Including penalties) -
$176,414.05
Summary
•
(A) Sent to Collection 9,273.61
(B) . Sent to Legal 160,819.30
(C) Delinquent Accounts Notified by Letter 6,321.14
(D) Accounts With Payment Arrangements -
Total $176,414.05
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.
(2) Brews & Cues was sent a past due notice 3/23/09.
(3) Hoops was sent a past due notice 3/31/09.
(4) Michael's Tavern was sent a past due notice 3/27/09. Business sold 2/2/09 to FDLL Long LLC.
(5) Minda Lanes was sent a past due notice 3/23/09.
Exhibits 1st Qtr 09 6/19/2009
EXHIBIT III
City of Yakima
SIEID LOANS SUMMARY
(as of March 31, 2009)
Original Beginning 4th Quarter Activity Ending
Loan Principal Amount Billed (1) Payments (1) Past Due Principal
Acct. # Amount Balance Principal Interest Other Principal Interest Other Amount Balance
Cascade Quality Molding 4594 $44,000.00 $15,140.26 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $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 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $64,241.83
(1) Annual loan payments, (i.e., principal and interest) are due:
(a) Cascade Quality Molding - June 1st
(b) Cub Crafters - April lst
(c)Yakima Air Terminal = June lst
Exhibits 1st Qtr 09 6/19/2009
EXHIBIT IV
. City of Yakima
LID ASSESSMENT RECEIVABLES
(as of March 31st, 2009)
Outstanding Principal - 1st Quarter Outstanding Principal
# of Beginning Balance ---- -- - - -- I Principal I Ending Balance
LID # - Description AcctE 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 0.00 $1,985.80 0.00 1,985.80
1056 - S 7th, 8th, & 9th ave Swrmn 33 101,642.10 14,897.92 $116,540.02 0.00 10,707.14 $95,125.10 10,707.78 105,832.88
1057 - N 84th Ave & Hawthorne Dr Swrmn 11 78,584.80 7,548.24 $86,133.04 0.00 0.00 $78,584.80 7,548.24 86,133.04
1058 - N 95th Ave, 94th P1 W Yak Ave Swrmn 27 82,278.40 7,120.43 $89,398.83 0.00 10,142.80 $72,525.60 ;6,730.43 79,256.03
Total $353,866.38 $30,255.39 $384,121.77 $0.00 $20,849.94 $337,596.58 $25,675.25 $363,271.83
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