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HomeMy WebLinkAbout04/15/2008 09C Accounts Receivable Status Report - 4th Quarter 2007 BUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON 411/ AGENDA STATEMENT Item No. For Meeting of April 15, 2008 ITEM TITLE: Accounts Receivable Status Report - 4th Quarter 2007 SUBMITTED BY: Finance Department ,}- CONTACT PERSON/TELEPHONE: Cindy Epperson Dep. Dir. of Acct/Budget, 575 -6070 Tim Jensen, Treasury Services Officer, 575 -6070 SUMMARY EXPLANATION: We are respectfully submitting the accounts receivable report as of December 31, 2007. 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 December 31, 2007 is: Gambling Taxes - $126,580; Section 108 Loans - $8,500; SIED Loans - $0; Remaining Central Receivables $459,975 for a grand total of $595,055. Resolution Ordinance Other (Specify) Report Contract Mail to (name and address): Phone: Funding Source N/A APPROVED FOR SUBMITTAL: -Z =� 4 City Manager STAFF RECOMMENDATION: Accept Report. • BOARD /COMMISSION /COMMITTEE RECOMMENDATION: COUNCIL ACTION: Agenda Statement 4th Qtr 07 04/10/2008 Page 1 of 1 ill CITY OF YAKIMA FINANCE DEPARTMENT STAFF REPORT SUBJECT: _ Accounts Receivable Status Report 4th Quarter 2007_ 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 December 31, 2007. City's Central Billing Accounts Receivable Exhibit I summarizes 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 December 31, 2007. 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. The most recent write -off was approved by Council on December 11, 2007 by 0 Resolution 2007 -176. Accounts that were off have been subtracted from the outstanding balances and are summarized by category in Exhibit I. Staff Report 4th Qtr 07 04/10/2008 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 $670.14 in the "Collection" column represents five 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 $6,200.80 in the "Collection" column represents fifty accounts; forty -eight for refuse bin charges, one for lost video equipment and one for claim reimbursement. The $1,339.06 in the "Over 120 Days" column represents three accounts; two for refuse bin charges and one 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 $884.92 in the "Collection" column represents 29 charges, which are being pursued by a collection agency on behalf of the City. The $962.50 in the "Over 120 Days" column represents three 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 L oans - The $8,500 in the "Over 120 Days" column represents three annual custodial fees. Water -Sewer Invoices and Contract - The $3 in the "Collection" column are for Water /Sewer invoices and contracts sent to collection for default and fire hydrant meter charges, damages and utility back billings. The $4,435.14 in the "Over 120 Days" column is for eleven accounts for utility back billings. Staff Report 4th Qtr 07 04/10/2008 Page 2 of 3 Gambling Tax During the forth quarter 2007, $197,026 in gambling tax payments were . received for the third quarter 2007 gambling period. These payments bring the year -to -date total to $955,484. This is 97% of the 2007 budget of $985,000 primarily because of the delinquency of a major establishment. 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 $118,230.22 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. Recent discussions with the new owner indicate that major changes have been made relative to operations, and the owner intends to keep current on tax payments. However, payment of the delinquent taxes will take an extended period of time. Legal is reviewing possible recourse against the prior owner.) 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 l 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 December 31, 2007, 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 $5,694.82 represents 13 accounts ranging from $285 to $466. 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. Staff Report 4th Qtr. 07 04/10/2008 Page 3 of 3 EXHIBIT I City of Yakima CENTRAL BILLING ACCOUNTS RECEIVABLE - (as of December 31, 2007) Accounts 4th Quarter Activity Approximate Receivable New Council Billings Beginning Invoices Write -Off Ending Current to Over Over To M Q A Balance Billed Payments R- 2007 -176 Balance 90 Days 90 Days 120 Days Collection Fire Alarm Monitor Billing 0 99 0 $202.50 $5,377.50 $5,280.00 $0.00 $300.00 $97.50 $0.00 $0.00 $202.50 Front St Bus. Imp. Assess. 0 19 0 828.89 917.50 801.25 75.00 870.14 150.00 50.00 0.00 670.14 Fruitvale Canal Billing 0 51 137.50 0.00 0.00 0.00 137.50 0.00 0.00 0.00 137.50 Miscellaneous 59 0 0 129,113.04 488,223.40 437,795.00 3,066.82 176,474.62 168,934.76 0.00. 1,339.06 6,200.80 Traffic Eng./ Engineering 0 0 0 22,605.52 0.00 6,245.52 0.00 16,360.00 16,310.00 0.00 0.00 50.00 Parking & Bus. Imp. Assess. 0 169 0 3,702.42 19,300.00 16,460.00 125.00 6,417.42 3,157.50 1,412.50 962.50 884.92 Parks & Rec. 13 0 0 8,688.81 20,343.34 9,569.39 185.00 19,277.76 18,236.01 141.00 0.00 900.75 Police Inmate Medical Reim. 0 0 0 34,001.70 0.00 0.00 25,693.94 8,307.76 0.00 0.00 0.00 8,307.76 Section 108 Loans 0 0 3 9,500.00 0.00 500.00 500.00 8,500.00 0.00 0.00 8,500.00 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 19 179,712.15 646,656.75 585,387.89 9,151.00 231,830.01 191,667.06 0.00 4,435.14 35,727.81 Sub Totals 100 287 76 388,492.53 1,180,818.49 1,062,039.05 38,796.76 468,475.21 398,552.83 1,603.50 15,236.70 53,082.18 Irrigation Assessments 0 0 N/A 42,925.22 0.00 0.00 42,925.22 0.00 0.00 0.00 0.00 0.00 Gambling Tax 0 25 0 60,343.46 263,576.34 197,026.32 313.80 126,579.68 0.00 0.00 122,129.84 4,449.84 Total Central Receivable 100 312 76 $491,761.21 $1,444,394.83 $1,259,065.37 $82,035.78 $595,054.89 $398,552.83 $1,603.50 $137,366.54 $57,532.02 M = Monthly Q = Quarterly A = Annually ID ill III klm Exhibits 2007 4th Quarter 4/10/2008 , . III EXHIBIT II City of Yakima SUMMARY OF GAMBLING TAX DELINQUENCY • (as of December 31, 2007) 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 & 2nd Qtr 07 118,230.22 Total (Including penalties) 118,230.22 (C) Delinquent Account(s) Notified by Letter: Michael's Tavern 3rd Qtr 07 - 2,766.24 Susie's Saloon 3rd Qtr 07 410.16 Twin Bridges 3rd Qtr 07 723.22 Total (Including penalties) 3,176.40 1111 (D) Account(s) With Payment Arrangements • Total (Including penalties) - • $125,856.46 Summary (A) Sent to Collection 4,449.84 (B) Sent to Legal 118,230.22 • (C) Delinquent Accounts Notified by Letter 3,176.40 (D) Accounts With Payment Arrangements - Total $125,856.46 ■ (1) Michaels Tavern is now past due for both 3rd and 4th quarter 2007 taxes; Follow -up collection ilo action is in progress (2) Susie's Salon's 3rd quarter taxes were paid in January of 2008. kim Exhibits 2007 4th Quarter 4/10/2008 • EXHIBIT III City of Yakima SIED LOANS SUMMARY (as of December 31, 2007) Original Beginning 4th Quarter Activity Ending Loan Principal Amount Billed (1) Payments (l) 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 Jeld -Wen 5618 100,000.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 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 $233,500.00 $82,266.56 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $82,266.56 (1) Loan payments, i.e., principal and interest are due June 1 of each year. klm 4/10 Mils 2007 4th Quarter 1111 ° • E IV City of Yakima • LID ASSESSMENT RECEIVABLES • (as of December 31, 2007) 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 4/10/2008 9:40 AM Exhibits 2007 4th Quarter.