HomeMy WebLinkAbout11/17/2009 11B 3rd Quarter 2009 Accounts Receivable Status Report •
BUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
•AGENDA STATEMENT
Item No. 41 " 1 LB
For Meeting of November 17, 2009
ITEM TITLE: Accounts Receivable Status Report — 3rd Quarter 2009
SUBMITTED BY: Finance Department
CONTACT PERSON/TELEPHONE: Cindy Epperson, eputy Director of Acct/Budget, 575-6070
SUMMARY EXPLANATION:
We are respectfully submitting the accounts receivable report as of September 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 II — Gambling Delinquency Detail
• Exhibit III — SIED Loans Summary
• Exhibit W — Local Improvement District (LID) Receivables
The balance of outstanding Receivables billed through Central Billing as of
September 30, 2009 is: Gambling Taxes - $180,009; Section 108 Loans - $12,450; SIED
Loans - $45,335; LID Assessments $334,100. (Including delinquencies of $17,620).
Remaining Central Receivables $311,955 for a grand total of $883,849.
Resolution Ordinance Other (Specify) Report
Contract Mail to (name and address):
Phone:
Funding Source N/A
APPROVED FOR SUBMIT1'AL:
City Manager
STAFF RECOMMENDATION: Accept Report.
10ARD/COMMISSION/COMMTITEE RECOMMENDATION:
COUNCIL AC1'ION:
3rd Qtr 09 Agenda Statement 11/1712009,
Page 1 of 1
CITY OF YAKIMA
FINANCE DEPARTMENT
STAFF REPORT
November 3, 2009
SUBJECT: Accounts Receivable Status Report
3rd 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 September 30, 2009.
City's Central Billing Accounts Receivable
A sumrnary 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
uarterly activity of billings and payments and the aged receivable balance in each category as
of September 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; (Exception: write-offs of Municipal Court delinquencies are authorized by the
Municipal Court Judges.)
Downtown Yakima Business Improvement District-Annually/Ouarterly (DYBID) - This is an
ssessment that became effective September 2008, and replaced the Parking & Business
Improvement Assessment (PBIA). There are two types of billings; quarterly to all •
3rd Qtx 09 Staff Report II/1212009
Page 1 of 3
property/business owners and annual billings to all individual businesses located in this area.
The first annual charge was billed on 1/29/09.
Annual Charges - The $4,100 in the "Over 120 Days" column represents 41 accounts.
Quarterly Charges - The $2,222.42 in the "Over 120 Days" column represents 27
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 $7,563.86 in the "Collection" column represents sixty-four accounts; sixty-
two for refuse bin charges, one for lost video equipment and one for claim reimbursement.
Traffic Engineering/Engineering Billing - The $50.00 in the "Collection" column represents one
account for plans & specs.
Parking and Business Improvement Assessment (PBIA) - The $697.42 in the "Collection"
column represents twenty-five 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 $2,517.25 in the "Collection" colurnn represents seven
accounts; six are for park use fees and one for building rental.
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 $29,519.55 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 $550.88 in the "Over 120 Days" column is
for one account. The $3,211.09 in the "To Legal" column is for one utility back billing charge.
3rd Qtr 09 Staff Report II /12/2009
Page 2 of 3
This customer has filed for bankruptcy 10/7/08 and will be included on the 2009 council write-
off list.
Gambling Tax
During the third quarter 2009, $213,559 in gambling tax payments were received for the second
quarter 2009 gambling period, bringing the year-to-date total to $720,986. This is 77% of the
2009 budget of $932,000.
Gambling Tax Delinquencies - Exhibit II details the status of delinquent gambling tax accounts.
The delinquent accounts of four gambling establishments, totaling $13,405, have been sent to
collections. Four establishments totaling $5,783 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. Per e-mail notice from the Gambling
Commission on 9/29/08, this business has surrendered their gambling license. (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 collection action
at this time. However; the bankruptcy filing will be monitored for any changes.)
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
Thmmission 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 lh grant and 1/2 loan for
infrastructure improvements, and enters into loan agreements with the companies that benefit
from the improvements, with a 5-year amortization. As of September 30, 2009, there are no
accounts with delinquent balances due. Exhibit III summarizes the status of the outstanding
SIEDloans. -
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 3rd Qtr delinquent balance is $17,620, at 9/30/09.
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 an attempt to minimize possible foreclosures in the future. Legal is notified
of any delinquency that is 2 years in arrears.
3rd Qtr 09 Staff Report 11/12/2009
Page 3 of 3
EXHIBIT I
City of Yakima
CENTRAL BILLING ACCOUNTS RECEIVABLE
(as of September 30, 2009)
---------- 3rd Quarter Activity
Approximate New
Billings Beginning Invoices Ending Current to Over Over To To
I. Current M Q A Balance Billed Payments Balance j 90 Days 90 Days 120 Days Collection Legal
- -,
• Downtown Yakima Business
,
Improvement District: -
Annual: 418 $ 5,750.00 $0.00 $ 1,375.00 $ 4,375.00 . $275.00 $0.00 $ 4,100.00 $0.00 $0.00
Quarterly 265 9,395.69 42,677.15 38,467.72 13,605.12 6,242.54 5,140.16 2,222.42 0.00 0.00
Fire Alarm Monitor Billing 89 210.00 4,980.00 4,980.00 210.00 750 0.00 0.00 202.50 0.00
Front St Bus. Imp. Assess. * 20 245.14 983.75 883.75 345.14 100.00 0.00 0.00 245.14 0.00
Fruitvale Canal Billing 50 2,185.00 0.00 1,985.00 200.00 0.00 75.00 0.00 125.00 0.00
Miscellaneous 76 64,108.26 294,391.24 330,282.11 28,21739 18,891.29 1,762.24 0.00 7,563.86 0.00
Traffic Eng./ Engineering 1 9,310.00 280.00 490.00 4,100.00 4,050.00 0.00 0.00 50.00 0.00
Parking & Bus. Imp. Assess. 847.42 0.00 150.00 697.42 0.00 0.00 0.00 697.42 0.00
Parks & Rec. 12 10,821.68 10,199.86 13,760.89 7,260.65 926.10 3,81730 0.00 2,517.25 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 5,300.00 0.00 12,450.00 5,300.00 0.00 7,150.00 0.00 0.00
SIED Loans/ Contributions (I) 3 5,476.49 0.00 5,476.49 0.00 0.00 0.00 0.00 0.00 0.00
1
Water/Sewer Invoice & Con. 24 2 370,563.77 292,805.90 418,330.83 245,038.84 I 210,907.95 849.37 550.88 29,519.55 3,211.09
Sub Totals 113 374 476 488,969.37 651,617.90 816,181.79 324,405.48 246,700.38 11,644.07 14,023.30 48,826.64 3,211.09
Gambling Tax 20 175,767.68 217,801.05 213,559.53 180,009.20 0.00 0.00 5,783.94 13,405.96 160,819.30
I
Total 113 394 476 $664,737.05 $869,418.95 $1,029,741.32 $504,414.68' $246,700.38 $11,644.07 $19,807.24 $62,232.60 $164,030.39
Legend:
M = Monthly Q = Quarterly A = Annually ; (1) Total outstanding SIED loans at 9/30/09 is $45,335.32. There are currently no delinquent accounts.
3rd Otr OD E.... _....a 11/12J2C09
EXHIBIT II
City of Yakima
SUMMARY OF GAMBLING TAX DELINQUENCY
(as of September 30, 2009)
Name Date Amount
(A) Account(s) Sent to Collection: -
410 Restaurant - . 1st, 2nd & 3rd Qtr 03 $ 3,837.36
Hoops 4th Qtr 08 & 1st Qtr 09 1,329.58
Michael's Tavern 2nd, 3rd & 4th Qtr 08 8,082.40
Minda Lanes 3rd & 4th Qtr 08 156.62
Total (Including penalties) 13,405.96
•
(B) Account(s) Sent to Legal:
Thunderbird Casino lst, 3rd & 4th Qtr 07 160,819.30
Total (Including penalties) 160,819.30
(C) Delinquent Account(s) Notified by Letter:
Brew & Cues 2nd Qtr 09 223.62
Hoops 2nd Qtr 09 3,948.60
Lewisville Tavern 2nd Qtr 09 716.52
Minda Lartes 3rd & 4th Qtr 08 895.20
Total (Including penalties) 5,783.94
(D) Account(s) With Payment Arrangements
Total (Including penalties) -
$180,009.20
Summary
(A) Sent to Collection 13,405.96
(B) Sent to Legal 160,819.30
(C) Delinquent Accounts Notified by Letter 5,783.94
(D) Accounts With Payment Arrangements ,
Total $180,009.20
Legend:
(1) Refer to gambling fax narrative on pg 3 of this report for further information on this accciunt.
(2) Brews & Cues was sent a past due notice 9/9/09.
(3) Hoops was sent a collection notice 9/22/09.
(4) Lewisville Tavern was sent a past due notice 9/22/09.
(5) Minda Lanes was sent a past due nptite:9/22/09.
3rd Qtr 09 Exhibits 11/12/2009
EXHIBIT III
City of Yakima
SIED LOANS SUMMARY
(as of September 30, 2009)
Original Beginning ------ 3rd Quarter Activity ------------------- Ending
Loan Principal Amount Billed (1) Payments Balance 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 $4,840.60 $635.89 $0.00 $0.00 $10,299.66
Cub Crafters 5526 25,000.00 5,465.92 0.00 0.00 0.00 0.00 0.00 0.00 0.00 5,465.92
Yakima Air Terminal 5644 64,500.00 29,569.74 0.00 0.00 0.00 0.00 0.00 0.00 0.00 29,569.74
Totals $133,500.00 $50,175.92 $0.00 $0.00 $0.00 $4,840.60 $635.89 $0.00 $0.00 $45,335.32
(1) Annual loan payments, (i.e., principal and interest) are due:
(a) Cascade Quality Molding - June 1st; Payment made 8/21/09
(b) Cub Crafters - April 1st; Payment made 5/8/09
(c)Yakima Air Terminal -June 1st; Payment made 5/15/09
3rd Qtr 0 s 11/12/2009
EXHIBIT
City of Yakima
LID ASSESSMENT RECEIVABLES n
(as of September 30, 2009)
, • Outstanding Principal 3rd Quarter Outstanding Principal
# of 7 ---- Beginning Balance ----- I Principal I -- -------- Ending Balance .
LID # - Description Acct Current Delincient 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 ', :9,375.28 $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 $992.90 0.00 $992.90 0.00 0.00 $992.90 0.00 992.90
1056 - S 7th, 8th , & 9th ave Sewer main 28 91,401.10 7,914.14 $99,315.24 0.00 0.00 $91,401.10 7,914.14 99,315.24
1057 - N 84th Ave & Hawthorne Dr Sewer mai 11 72,534.90 7,548.24 $80,083.14 0.00 6,547.19 $70,352.60 3,183.35 73,535.95
1058 - N 95th Ave, 94th P1 W Yak Ave Sewer n 20 68,361.20 6,278.70 $74,639.90 0.00 4,447.70 $64,358.90 5,833.30 70,192.20
Total $322,665.38 $22,429.88 $345,095.26 $0.00 $10,994.89 $316,480.78 $17,619.59 $334,100.37
3rd Qtr 09 Exhibits 11/12/2009