HomeMy WebLinkAbout06/10/2008 13B Accounts Receivable Status Report - 1st Quarter 2008 BUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
® AGENDA STATEMENT
Item No. /"13 B
For Meeting of Tune 17, 2008
ITEM TITLE: Accounts Receivable Status Report - 1st Quarter 2008
SUBMITTED BY: Finance Department
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CONTACT PERSON/TELEPHONE: Cindy Epperson, Dep. Dir. of Acct/Budget, 575 -6070
Tim Jensen, Treasury Services Officer, 575-6017-"'
SUMMARY EXPLANATION:
We are respectfully submitting the accounts receivable report as of March 31, 2008. This
report lists all accounts receivable balances handled through Central Billing. (Includes:
Gambling tax, Fire alarm monitoring, Section 108 & SIED Loans 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 Tax Status
• Exhibit III - SIED Loans
• Exhibit IV - Local Improvement District (LID) Receivables
The balance of outstanding Receivables billed through Central Billing as of
March 31, 2008 is: Gambling Taxes - $187,600; Section 108 Loans - $8,500; SIED Loans - $0;
LID Assessments $431,720 (Including delinquencies of $16,844). Remaining Central
Receivables $223,450 for a grand total of $851,270.
Resolution Ordinance Other (Specify) Report
Contract Mail to (name and address):
Phone:
Funding Source N/A
APPROVED FOR SUBMITTAL: �=, i
City Manager
STAFF RECOMMENDATION: Accept Report.
• BOARD /COMMISSION /COMMITTEE RECOMMENDATION:
COUNCIL ACTION:
Agenda Statement 1st Qtr 08 06/04/2008
Page 1 of 1
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CITY OF YAKIMA
FINANCE DEPARTMENT
STAFF REPORT
SUBJECT: Accounts Receivable Status Report '
1st Quarter 2008
SUBMITTED BY: Finance Department
CONTACT PERSON: Cindy Epperson, Deputy Director of Acct & Budgeting
Tim Jensen, Treasury Services Officer
This report reflects the status of Central Billing Accounts Receivable at March 31, 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 current aged receivable balance in each
category, as of March 31,"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 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.
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Staff Report 1st Qtr 08 06/04/2008
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 $470.14 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 51 accounts annually. $137.50 in the "Collection"
column represents five accounts.
Miscellaneous Billing - The billings under this category are mainly for transit bus passes, refuse
charges and monthly retiree insurance premiums. The $5,883.89 in the "Collection" column
represents forty -six accounts; forty -four for refuse bin charges, one for lost video equipment
and one for claim reimbursement. The $1,169.86 in the "Over 120 Days" column represents one
account for a radio site lease.
Traffic Engineering/Engineering Billing - The $50.00 in the "Collection" column represents one
account for plans & specs.
Parking and Business Improvement Assessment (PBIA) - The $864.92 in the "Collection"
column represents twenty -seven charges, which are being pursued by a collection agency on
behalf of the City. The $3,277.50 in the "Over 120 Days" column represents seven accounts.
Parks and Recreation Billing - The $900.75 in the"Collection" column represents three
accounts; two 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.
Water -Sewer Invoices and Contract - The $39,965.03 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 $44,127.20 in the "Over 120 Days" column
is for three accounts for utility back billings.
Staff Report 1st Qtr 08 06/04/2008
Page 2 of 3
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Gambling Tax
During the first quarter 2008, $226,150 in gambling tax payments were received for the fourth
quarter 2007 gambling period. These payments bring the year -to -date total to $226,150. This is
24% of the 2008 budget of $951,000.
Gambling Tax Delinquencies — Exhibit II details the status of delinquent gambling tax accounts.
The delinquent accounts of two gambling establishments, totaling $4,449.84, have been sent to
collections. One account owes the City $175,819 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.)
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
411 Yakima County administers a program entitled Supporting Investment in Economic
Development (SIED). Typically, the City uses this program which offers 1 Y2 grant and 1 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, 2008, there were no
outstanding SIED loans currently payable, as the loans are structured to be due the first of June
of each year. 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 delinquent balance of $16,844.15 represents 23
accounts ranging from $285 to $2,183. 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 1st Qtr 08 06/04/2008
Page 3 of 3
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EXHIBIT I
City of Yakima
CENTRAL BILLING ACCOUNTS RECEIVABLE
(as of March 31, 2008)
Accounts -- - -- ---1st Quarter Activity - - --- --
Approximate Receivable New
Billings Beginning Invoices Ending Current to Over Over To To
M Q A Balance Billed Payments Balance 90 Days 90 Days 120 Days Collection Legal
Fire Alarm Monitor Billing 0 99 0 $300.00 $5,310.00 $5,377.50 $232.50 $30.00 $0.00 $0.00 $202.50 $0.00
Front St Bus. Imp. Assess. 0 20 0 870.14 967.50 983.75 853.89 183.75 100.00 100.00 470.14 0.00
Fruitvale Canal Billing 0 51 137.50 0.00 0.00 137.50 0.00 0.00 0.00 137.50 0.00
Miscellaneous 72 0 0 176,474.62 393,389.63 523,322.36 46,541.89 38,776.30 711.84 1,169.86 5,883.89 0.00
Traffic Eng./ Engineering 0 0 0 16,360.00 832.18 1,382.18 15,810.00 15,760.00 0.00 0.00 50.00 0.00
Parking & Bus. Imp. Assess. 0 168 0 6,417.42 18,075.00 17,370.00 7,122.42 1,985.00 995.00 3,277.50 864.92 0.00
Parks & Rec. 3 0 0 19,277.76 1,048.22 15,314.46 5,011.52 2,754.29 1,356.48 0.00 900.75 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 0.00 0.00 8,500.00 0.00 0.00 8,500.00 0.00 0.00
SIED Loans/ Contributions 0 0 3 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Water/Sewer Invoice & Con. 28 0 19 231,830.01 413,351.75 505,749.59 139,432.17 51,728.85 400.00 44,127.20 39,965.03 3,211.09
Sub Totals 102 287 72 468,475.21 832,974.28 1,069,499.84 231,949.65 111,218.19 3,563.32 57,174.56 56,782.49 3,211.09
Gambling Tax 0 22 0 126,579.68 287,170.49 226,149.82 187,600.35 0.00 0.00 7,331.21 4,449.84 175,819.30
Total Central Receivable 102 309 72 $595,054.89 $1,120,144.77 $1,295,649.66 $419,550.00 $111,218.19 $3,563.32 $64,505.77 $61,232.33 $179,030.39
M v Monthly Q = Quarterly A = Annually
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INV
kim Exhibits st Qtr 08 6/3/2008
EXHIBIT II
City of Yakima
SUMMARY OF GAMBLING TAX DELINQUENCY
(as of March 31, 2008)
Name Date Amount
(A) Account(s) Sent to Collection:
Kokopelli 1st Qtr 05 $612.48
410 Restaurant 1st, 2nd & 3rd Qtr 03 3,837.36
Total (Including penalties) 4,449.84
(B) Account(s) Sent to Legal:
Thunderbird Casino 1st, 3rd & 4th Qtr 07 175,819.30
Total (Including penalties) 175,819.30
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(C) Delinquent Account(s) Notified by Letter:
Little Dutch Inn 4th Qtr 07 293.10
Michael's Tavern � 3rd & 4th Qtr 07 5,459.76
Minda Lanes 4th Qtr 07 168.53
Twin Bridges 3rd & 4th Qtr 07 1,409.82
Total (Including penalties) 7,331.21
(D) Account(s) With Payment Arrangements
Total (Including penalties) -
$187,600.35
Summary
(A) Sent to Collection 4,449.84
(B) Sent to Legal 175,819.30
(C) Delinquent Accounts Notified by Letter . 7,331.21
(D) Accounts With Payment Arrangements -
Total $187,600.35
Legend:
(1) Thunderbird Casino is also delinquent on their 1st Qtr 2008 taxes, which were due by 4/30/08.
Refer to gambling tax narrative on pg 3 of this report for further information on this account.
(2) Michaels Tavern's taxes were paid on 4/17/08 & Little Dutch Inn paid on 4/21/08.
(3) Minda Lanes' account was forwarded to YCCS 5/21/08 & Twin Bridges on 5/5/08.
Idm Exhibits 1st Qtr 08 6/3/2008
EXHIBIT III
City of Yakima
SIED LOANS SUMMARY
(as of March 31, 2008)
Original Beginning 1st 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. $19,785.75 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $19,785.75
Cub Crafters 5526 25,000.00 15,728.87 0.00 0.00 0.00 0.00 0.00 0.00 0.00 15,728.87
Yakima Air Terminal 5644 64,500.00 46,751.94 0.00. 0.00 0.00 0.00 0.00 0.00 0.00 46,751.94
Totals $ 133, 500.00 $82,266.56 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $82,266.56
(1) Annual loan payments, (i.e., principal and interest) are due:
(a) Cascade Quality Molding - June 1, 2008; payment not yet received.
(b) Cub Crafters - April 1, 2008; payment has been received.
(c)Yakima Air Terminal - June 1, 2008; payment has been received.
klm 8/3/ Iblts 1st Qtr 08
ID
® .• 4IV
City of Yakima
LID ASSESSMENT RECEIVABLES
(as of March 31, 2008)
Outstanding Principal - Outstanding Principal
# of • Beginning Balance ---- --- --- ---- 4th Quarter - - -- ------ --- - -- Ending Balance ------ ---- --
LID # - Description Accts Current Del. Total Adds Payments Current Del. Total
1049 - N 1st Ave Paving Project 23 $119,167.04 $0.00 $119,167.04 $0.00 $14,895.88 $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
1054 - S 70th Ave/Lindgren Dr Swrmn 1 539.00 0.00 539.00 0.00 539.00 0.00 0.00 0.00
1055 - North 85th Ave Sewer 1 2,978.70 0.00 2,978.70 0.00 0.00 .2,978.70 0.00 2,978.70
1056 - S 7th, 8th , & 9th ave Swrmn 33 150,233.70 6,521.48 156,755.18 0.00 21,038.26 130,592.90 5,124.02 135,716.92
1057 - N 84th Ave & Hawthorne Dr Swrmn 11 99,652.94 0.00 99,652.94 0.00 7,470.00 92,182.94 0.00 92,182.94
1058 - N 95th Ave, 94th P1 W.Yak Ave Swrmn 27 115,920.01 0.00 115,920.01 0.00 6,862.25 107,136.69 0.00 107,136.69
Total $488,491.39 $7,092.28 $495,583.67 $0.00 $50,805.39 $437,162.39 $5,694.82 $442,857.21
ERP 6/4/2008 4:24 PM Exhibits 1st Qtr 08
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