HomeMy WebLinkAbout11/18/2008 11B Accounts Receiveable Status Report - 3rd Quarter 2008 BUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
S AGENDA STATEMENT
Item No. ( is
For Meeting of November 18, 2008
ITEM '1'fl LE: Accounts Receivable Status Report — 3rd Quarter 2008
SUBMITTED BY: Finance Department
CONTACT PERSON/TELEPHONE: Cindy Epperson, Deputy Director of Ac :udget, 575 -6070
Tim Jensen, Treasury Services Office , ,i 75 :170
SUMMARY EXPLANATION:
We are respectfully submitting the accounts receivable report as of September 30, 2008.
This report lists all accounts receivable balances handled through Central Billing.
(Includes: Gambling tax, Section 108, SIED Loans, LID's and numerous other misc.
receivables.)
The report has the following components:
• • Staff Report.
• Exhibit I — Central Billing ccounts Receivable Summary.
r. Y
(Includes total amounts billed and collected during the quarter.)
• Exhibit II — Gambling Delinquency Detail
• Exhibit HE — SIED Loans Summery
• Exhibit IV — Local Improvement District (LID) Receivables
The balance of outstanding Receivables billed through Central Billing as of
September 30, 2008 is: Gambling Taxes - $173,807; Section 108 Loans - $13,800; SIED
Loans - $64,242; LID Assessments $409,230 (Including delinquencies . of $14,981).
Remaining Central Receivables $280,925 for a grand total of $942,004.
Resolution Ordinance Other (Specify) Report
Contract Mail to (name and address):
Phone:
Funding Source N/A
APPROVED FOR SUBMITTAL:
City Manager
STAFF RECOMMENDATION: Accept Report.
BOARD/COMMISSION/COMMITTEE RECOMMENDATION:
•
COUNCIL AC:IION:
Agenda Statement3rd Qtr 0811/12/2008
Page 1 of 1
•
CITY OF YAKIMA
FINANCE DEPARTMENT
STAFF REPORT
November 18, 2008
SUBJECT: Accounts Receivable Status Report
3rd Quarter 2008
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 September 30, 2008.
• 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 September 30, 2008, 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.
•
Staff Report3rd Qtr 08 1 1/121200 8
Page 1 of 3
Fire Alarm Monitor (FAM) - The $202.50 in the "Collection" column represents two accounts.
Front Street Business Improvement Assessment (FSBI) - The $520.14 in the "Collection" column
represents four accounts. The $50 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 51 accounts annually. The $75.00 in the "Collection"
column represents two accounts.
Miscellaneous Billing - The billings under this category are mainly for transit bus passes and
refuse charges. The $7,131.47 in the "Collection" column represents sixty accounts; fifty -eight
for refuse bin charges, one for lost video equipment and one for daim 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 $1,209.92 in the "Collection"
column represents twenty -nine charges, which are being pursued by a collection agency on
behalf of the City. The $3,610.00 in the "Over 120 Days" column represents three accounts; two
accounts are on the 2008 write -off list as uncollectable.
11111
Parks and Recreation Billing - The $1,914.98 in the "Collection" column represents six accounts;
five 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 13 remaining accounts which have not yet met the write -off
criteria have a balance of $8,307.76 and are currently in collection.
Section 108 Loans - The $8,500 in the "Over 120 Days" column represents three annual
custodial fees. (One account in the amount of $4,000 paid 10/21/08).
Water -Sewer Invoices and Contract - The $28,533.68 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 $40,608.29 in the "To Legal" column is for
two utility back billing charges. (One account in the amount of $37,397.20, has since been
modified and payment arrangements are forthcoming from City Legal Department).
•
Staff Report 3rd Qtr 0811/12/2008
Page2of3
III
Gambling Tax
During the third quarter 2008, $220,839.92 in gambling tax payments were received for the
second quarter 2008 gambling period. These payments bring the year -to -date total to $700,819.
0
This is 74% of the 2008 budget of $951,000.
Gambling Tax Delinquencies - Exhibit II details the status of delinquent gambling tax accounts.
The delinquent accounts of four gambling establishments, totaling $9,163.90, have been sent to
collections. Three establishments totaling $3,823.71 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 email 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.
0 Co 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 V2 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, 2008, 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 3rd Qtr delinquent balance is $14,981, at 9/30/08.
As an LID represents a lien against the property, and State law requires foreclosure after 3 years
assessments are past due. Legal is notified of any delinquency that is 2 years in arrears.
III
Staff Report 3rd Qtr 08 11/12/2008
Page 3 of 3
EXHIBIT I
City of Yakima
CENTRAL BILLING ACCOUNTS RECEIVABLE
(as of September 30, 2008)
- - - --- 3rd Quarter Activity --------------- --- --
Approximate New
Billings Beginning Invoices Ending Current to Over Over To To
I. Current M Q A Balance Billed Payments Balance 90 Days 90 Days 120 Days Collection Legal
seelaroasemosi
Fire Alarm Monitor Billing 0 93 0 $247.50 $5,017.50 $4,732.50 $532.50 $150.00 $180.00 $0.00 $202.50 $0.00
Front St Bus. Imp. Assess. 0 21 0 720.14 1,017.50 1,083.75 653.89 133.75 0.00 0.00 520.14 0.00
Fruitvale Canal Billing 0 50 1,525.00 0.00 1,137.50 387.50 0.00 312.50 0.00 75.00 0.00
Miscellaneous 86 0 0 56,218.97 351,524.59 365,334.68 42,408.88 32,618.65 2,658.76 0.00 7,131.47 0.00
Traffic Eng./ Engineering 1 0 0 15,335.00 1,085.00 1,445.00 14,975.00 14,925.00 0.00 0.00 50.00 0.00
Parking & Bus. Imp. Assess. 0 162 0 10,279.92 0.00 5,460.00 4,819.92 0.00 0.00 3,610.00 1,209.92 0.00
Parks & Rec. 9 0 0 6,668.13 9,701.83 12,440.68 3,929.28 1,838.30 176.00 0.00 1,914.98 0.00
Police Inmate Medical Reim. 0 0 0 8,307.76 0.00 0.00 8,307.76 0.00 0.00 0.00 8,307.76 0.00
Section 108 Loans 0 0 3 8,500.00 5,300.00 0.00 13,800.00 5,300.00. 0.00 8,500.00 0.00 0.00
SIED Loans/ Contributions (1) 0 0 3 5,476.49 0.00 5,476.49 0.00 0.00 0.00 0.00 0.00 0.00
Water /Sewer Invoice & Con. 33 0 1 111,889.32 520,474.39 427,453.29 204,910.42 135,031.10 737.35 0.00 28,533.68 40,608.29
Sub Totals 102 ; 276 72 225,168.23 894,120.81 824,563 89 294,725.15 189,996.80 4,064.61 12,110.00 47,945.45 40,608.29
Gambling Tax 0 22 0 169,983.20 224,663.63 220,839.92 173,806.91 0.00 0.00 3,823.71 9,163.90 160,819.30
Total 102 298 72 $395,151.43 $1,118;784.44 $1,045,403.81 $468,532.06 $189,996.80 $4,064.61 $15,933.71 $57,109.35 $201,427.59
M = Monthly Q = Quarterly A = Annually
Legend:
(1) Total outstanding SIED loans at 9/30/08 is $64,241.83. There are currently no delinquent accounts.
• III 111
Exhibits 3rd Qtr 0811/12/2008
III EXHIEIT II
City of Yakima
SUMMARY OF GAMBLING TAX DELINQUENCY
(as of September 30, 2008)
. Name Date Amount
(A) Account(s) Sent to Collection:
410 Restaurant 1st, 2nd & 3rd Qtr 03 $ 3,837.36
Hoops 1st Qtr 08 $ 4,370.40
Kokopelli 1st Qtr 05 612.48
Minda Lanes 4th Qtr 07 & 1st Qtr 08 343.66
Total (Including penalties) 9,163.90
(B) Account(s) 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
Lewisville Tavern (2) 2nd Qtr 08 158.43
Minda Lanes 2nd Qtr 08 539.28
Michael's Tavern 2nd Qtr 08 3,126.00
Total (Including penalties) 3,823.71
(D) Accounts) With Payment Arrangements
Total (Including penalties) -
•
$173,806.91
Summary
(A) Sent to Collection 9,163.90
(B) Sent to Legal 160,819.30
(C) Delinquent Accounts Notified by Letter 3,823.71
(D) Accounts With Payment Arrangements
Total $173,806.91
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) Lewisville Tavern was sent a past due notice on 9/17/08. Account paid 10/1/08.
(3) Minda Lanes was sent a past due notice 9/16/08.
(4) Michael's Tavern was sent a past due notice 9/16/08.
Exhibits 3rd Qtr 0811/12/2008
EXHIBIT III
City of Yakima
SIED LOANS SUMMARY
(as of September 30, 2008)
Original Beginning -------- --- --- --- .- _______ 3rd Quarter Activity -------------- ------ ------- Ending
Loan Principal ---- ---- -- Amount Billed ° ---- --____ mM_ -- Payments ° -------- Past Due Principal
Acct. # Amount Balance Principal Interest Other Principal Interest Other Amount Balance
Cascade Quality Molding 4594 $44,000.00 $19,785.75 $0.00 $0.00 $0.00 $4,645.49 $831.00 $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 $68,887.32 $0.00 $0.00 $0.00 $4,645.49 $831.00 $0.00 $0.00 $64,241.83
(1) Annual loan payments, (i.e., principal and interest) are due:
(a) Cascade Quality Molding - June 1, 2008; Paid 7/31/08
(b) Cub Crafters - April 1, 2008; Paid 5/12/08
(c)Yakima Air Terminal - June 1, 2008; Paid 5/19/08
Exhibits
103
11/12/2008 III III
•
•
EXHIBIT IV
City of Yakima
LID ASSESSMENT RECEIVABLES
(as of September 30, 2008)
Outstanding Principal - 3rd. Quarter Outstanding Principal
# of -- - - -- Beginning Balance I Principal I Ending Balance
LID # - Description Accts Current Delingent Total Adds Payments Current Delinquent Total
1049 - N 1st Ave Paving Project 23- . $104,271.16 $0.00 $104,271.16 $0.00 $0.00 $104,271.16 $0.00 $104,271.16
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 33 122,679.40 8,846.74 $131,526.14 0.00 4,655.32 $118,955.40 7,915.42 126,870.82
1057 - N 84th Ave & Hawthorne Dr Swrmn 11 83,149.60 3,775.04 $86,924.64 0.00 791.60 $82,358.00 3,775.04 86,133.04
' 1058 - N 95th Ave, 94th P1 W Yak Ave Swann 27 89,798.90 2,719.93 $92,518.83 0.00 3,120.00 $86,678.90 2,719.93 89,398.83
Total $401,884.86 $15,912.51 $417,797.37 $0.00 $8,566.92 $394,249.26 $14,981.19 $409,230.45
Page 1