HomeMy WebLinkAbout07/20/2010 19C Accounts Receivable Status Report -- 1st Quarter 2010 BUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
AGENDA STATEMENT
Item No. /9 C,
For Meeting of July 20, 2010
ITEM TITLE: Accounts Receivable Status Report — 1st Quarter 2010
SUBMITTED BY: Finance Department
CONTACT PERSON/TELEPHONE: Cindy Epperson,`Dep. Director of Acct/Budget, 575 -6070
SUMMARY EXPLANATION:
We are respectfully submitting the accounts receivable report as of March 31, 2010.
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.
4110 • 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 IV — Local Improvement District (LID) Receivables
The balance of outstanding Receivables billed through Central Billing as of
March 31, 2009 is: Gambling Taxes - $173,790; Section 108 Loans - $8,240; SIED
Loans - $45,335; LID Assessments $291,700 (including delinquencies of $19,247).
Remaining Central Receivables $385,364 for a grand total of $904,429.
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 ACTION:
Quarterly A/R Agenda Statement
• City of Yakima
FINANCE DEPARTMENT
' STAFF REPORT
July 15, 2010
SUBJECT: Accounts Receivable Status Report
1st Quarter 2010
SUBMITTED BY: Finance Department
CONTACT PERSON: Cindy Epperson, Deputy Director of Accounting & Budgeting
This report reflects the status of Central Billing Accounts Receivable at March 31, 2010.
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, 2010, 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, a narrative is provided that includes 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.)
D owntown Yakima Business Improvement District- Annually /Quarterly (DYBID) — This is an
a ssessment that became effective September 2008, and replaced the Parking & Business
Page 1 of 3 .
A/R 1st Quarter Report
Improvement Assessment (PBIA). There are two types of billings; quarterly to all 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 $1,900.00 in the "Collection" column represents twenty accounts.
Quarterly Charges - The $1,052.76 in the "Collection" column represents eight accounts.
Fire Alarm Monitor (FAM) - The $202.50 in the "Collection" column represents two accounts.
Front Street Business Improvement Assessment (FSBI) - The $187.50 in the "Collection" column
represents two 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 $100.00 in the "Collection"
column represents two accounts.
Miscellaneous Billing - The billings under this category are mainly for transit bus passes and
refuse charges. The $6,859.76 in the "Collection" column represents fifty -nine accounts; fifty -six
for refuse bin charges, one for plans, one for lost video equipment and one for claim
reimbursement.
•
Traffic Engineering / Engineering Billing - The $2,683.21 in the "Over 120 Days" column
represents one account for $4,000 in sidewalk safety repairs and a credit of $1,316.79 for Flasher
installation, which was subsequently researched and corrected.
Parking and Business Improvement Assessment (PBIA) - The. $317.42 in the "Collection" column
represents eighteen 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 $2,016.50 in the "Collection" column represents five
accounts; four 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 9 remaining accounts which have not yet met the write -off
criteria have a balance of $1,603.56 and are currently in collection.
Section 108 Loans - The $8,240.00 in the "Over 120 Days" column represents annual custodial
fees. _
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Page 2 of 3
A/R 1st Quarter Report
Water -Sewer Invoices and Contract — The $28,617.63 in the "Collection" column is for thirty-
four Water /Sewer invoices / contracts and fire hydrant meter charges, damages and utility back
billings sent to collection agency for follow up. .
Gambling Tax
During the first quarter of 2010, $214,280.70 in gambling tax payments were received for the
fourth quarter 2010 gambling period. This is 23% of the 2010 budget of $926,000.00.
Gambling Tax Delinquencies - Exhibit II details the status of delinquent gambling tax accounts.
The delinquent accounts of three gambling establishments, totaling $12,814.96, have been sent to
collections. An additional payment of $895.20 has subsequently been made by Mirada Lanes
which paid their account in full. One account owes the City approximately $160,819.30 in past
due gambling taxes and penalties. In July 2008, the City filed a Complaint in Yakima County
Superior Court for collection of the unpaid gambling taxes and penalties against the casino and
officers, directors and /or managers. Per an e -mail notice from the Gambling commission in
September 2008, the business surrendered its gambling license. In May 2009, the casino and one
of the individuals filed Chapter 7 bankruptcy and subsequently were discharged by the
bankruptcy court. No amounts have been collected on the debt to date.
0 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 1/2 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, 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 quarter delinquent balance is $19,247.13, as of
March 31, 2010. An LID represents a lien against the property, and State law requires
foreclosure after 3 years assessments are past due. The Finance Department increased collection
efforts on delinquent accounts in 2009 in an attempt to minimize possible foreclosures in the
tra future. Legal is notified of any delinquency that is over 2 years in arrears.
Page 3 of 3
A/R 1st Quarter Report
•
• EXHIBIT I
City of Yakima
CENTRAL BILLING ACCOUNTS RECEIVABLE
(as of March 31, 2010)
•
- - - --- ---1st Quarter Activity -------- - - - - - -- .
Approximate New
Billings Beginning Invoices Ending • Current to Over Over To To
Current M Q A Balance Billed Payments Balance 90 Days 90 Days 120 Days Collection Legal
Downtown Yak Bus Impr Dist
Annual (DYBIDA) - - 418 2,145.00 22,450.00 145.00 • 24,450.00 22,450.00 - 100.00 1,900.00 -
Quarterly (DYBID) - 265 - 7,740.87 35,244.11 1,692.44 41,292.54 35,244.11 - 4,995.67. . 1,052.76 -
Fire Alarm Monitor (FAM) - 90 - 105.00 4,912.50 (120.00) 5,137.50 4,912.50 - 22.50 202.50 -
Front Street Business Impr (FSBI) - 20 - 437.50 1,467.50 (50.00) 1,955.00 1,467.50 - 300.00 187.50 -
Fruitvale Canal Billing (FC) - - 50 125.00 - - 125.00 - - 25.00 100.00 -
Miscellaneous 90 - - 15,636.66 82,130.07 7,869.57 89,897.16 82,130.07 93.45 813.88 6,859.76. -
Traffic Eng./ Engineering 1 - - 2,733.21 - 50.00 2,683.21 - - 2,683.21 - -
Parking & Business Impr Assess (PBIA) - - - 357.42 - 40.00 317.42 - - - 317.42 -
Parks & Recreation (WEED) 15 - - 8,127.50 11,512.87 5,551.00 14,089.37 11,512.87 - 560.00 2,016.50 -
Police Inmate Medical Reimb (IMED) - - - 1,603.56 - - 1,603.56 - - - 1,603.56 -
Section 108 Loans . - - 1 8,520.00 - 280.00 8,240.00 - - 8,240.00 - • -
SIED Loans/ Contributions (1) - - 3 - - - - - - - -
Water /Sewer Invoice & Connections
City of Yakima 10 - 2 92,221.18 35,345.85 48,059.77 79,507.26 35,345.85 - 15,543.78 28,617.63 -
Terrace Heights/Union Gap 6 - - 41,873.16 105,517.93 23,086.59 124,304.50 105,517.93 18,786.57 - - -
Sub Totals 122 375 474 181,626.06 298,580.83 86,604.37 393,602.52. 298,580.83 18,880.02 33,284.04. 42,857.63 -
Gambling Tax 20 173,790.88 214,280.70 214,280.70 173,790.88 - - 12,814.96 160,819.30
Total 122 395 474 $355,416.94 $512,861.53 $300,885.07 $567,393.40 $298,580.83 $18,880.02 $33,284.04 $55,672.59 $160,819.30.
Legend:
M = Monthly Q = Quarterly A = Annually (1) Total outstanding SIED loans at 3/31/10 is $45,335.32. There are currently no delinquent accounts. •
Accounts REC Exhibits 7/14/2010
• e
E II
• City of Yakima •
• SUMMARY OF GAMBLING TAX DELINQUENCY
(as of March 30, 2010)
(A) Account(s) Sent to Collection: •
410 Restaurant (1st, 2nd & 3rd Qtr 03) $3,837.36
Michael's Tavern (2nd, 3rd & 4th Qtr 08) 8,082.40 •
Minda Lanes (1st - 2nd Qtr 09) 895.20
Total (Including penalties) 12,814.96
(B) Account(s) Sent to Legal:
Thunderbird Casino (1st, 3rd & 4th Qtr 07) (1) 160,819.30
Total (Including. penalties) 160,819.30
(C) Delinquent Account(s) Notified by Letter: -
(D) Account(s) With Payment Arrangements
• Total (Including penalties) -
Total 173,634.26
(1) Refer to gambling taxmarrative on pg 3 of this report for further information on this account. •
Accounts Rec Exhibits 7/14/2010
•
EXHIBIT III
City of Yakima
SIED LOANS SUMMARY
(as of March 31, 2010)
Original Beginning -- 1st 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 $10,299.66 $0.00 $0.00 $0.00 $0.00 $0.00 $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
Total $133,500.00 $45,335.32 $0.00 $0.00 $0.00 $0:00 $0.00 $0.00 $0.00 $45,335.32
(1) Annual loan payments, (i.e., principal and interest) billed: (a) Cascade Quality Molding - June 1st; (b) Cub Crafters - April 1st; (c) Yakima Air Terminal - June 1st
EXHIBIT IV • ;
LID ASSESSMENT RECEIVABLES
(as of March 31, 2010)
Outstanding Principal 1st Quarter _ Outstanding Principal
# of ---- Beginning Balance ----- Principal --- -- Ending Balance
LID # - Description Accts ' Current Delinqent Total Adds Payments Current Delinquent Total
1049 - N 1st Ave Paving Project 23 $74,479.40 $691.93 $75,171.33 $0.00 $0.00 $74,479.40 $691.93 $75,171.33
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 27 75,949.80 11,172.64 87,122.44 0.00 $4,655.64 $75,484.30 6,982.50 82,466.80
• 1057 - N 84th Ave & Hwthrn Dr Swr 16 62,454.29 4,774.25 67,228.54 0.00 $1,299.70 $61,154.59 4,774.25 65,928.84
1058 - N 95th Ave, 94th Pl, W Yak Ave Sewer 20 60,342.10 7,459.35 67,801.45 0.00 $1,231.70 $60,342.10 6,227.65 66,569.75
Total 89 $274,218.49 $24,668.97 $298,887.46 $0.00 $7,187.04 $272,453.29 $19,247.13 $291,700.42
Account '
ccount ibits 7/14/2010
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