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Home My WebLink About12/01/2015 05A 3rd Quarter 2015 Accounts Receivable Status ReportBUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDA STATEMENT Item No. 5. A. For Meeting of. December 1, 2015 ITEM TITLE: 3rd Quarter 2015 Accounts Receivable Status Report SUBMITTED BY: Cindy Epperson, Director of Finance and Budget SUMMARY EXPLANATION: This report lists all accounts receivable balances handled through Central Billing, including Recurring Receivable and Installment Accounts. The report has the following components: Staff Report Exhibit I --Accounts Receivable Summary (Includes total amounts billed and collected during the quarter.) Exhibit II -- Gambling Tax Delinquency Detail Exhibit III - -Local Improvement District (LID) Receivables The outstanding balance of recurring receivables billed through Central Billing as of September 30, 2015 is $1,406,675 which includes $1,382,637 for General Receivables and $24,038 for Gambling Taxes. The outstanding balance for Installment Accounts that have been billed as of September 30, 2015 is $69,715 for LID Assessments. Resolution: Other (Specify): Report Contract: Start Date: Item Budgeted: Funding Source/Fiscal Impact: Strategic Priority: Insurance Required? No Mail to: Phone: APPROVED FOR SUBMITTAL: Ordinance: Contract Term: End Date: Amount: Public Trust and Accountability City Manager RECOMMENDATION: Accept Report ATTACHMENTS: Description Upload Date Type D 3rd Qtir 2015 ACXXXJin�s Rc..w.,,eiw11b1e IRe put 11/9/2015 Cbmar Memo City of Yakima FINANCE DEPARTMENT STAFF REPORT November 12, 2015 SUBJECT: Accounts Receivable Status Report 3rd Quarter 2015 SUBMITTED BY: Finance Department CONTACT PERSON: Cindy Epperson, Director of Finance and Budget The Accounts Receivable Status Report reports the status of Central Billing Accounts Receivables and Installment Accounts as of September 30, 2015. CENTRAL BILLING ACCOUNTS RECEIVABLE Exhibit I is a summary by category (type) of the accounts billed through Central Receivables as of September 30, 2015. For each category the report displays the frequency of billing, the number of customers, the balance at the beginning of the reporting period, the quarterly billings and payments, the ending balance, and the aged receivable balance. Each category billed has different collection requirements. For example, unpaid Sewer contracts become a lien against the real property. For categories such as traffic, miscellaneous, and parks the City uses a collection agency. This report provides information on accounts that have a large balance due; are past due by at least 120 days; have been placed with the collection agency; are being pursued through legal proceedings; or have been determined to be uncollectable. The City's collection agency classifies an account as uncollectable when the account is beyond the statute of limitations for collection; the agency cannot locate the party; or the customer has been declared bankrupt. At year end, uncollectable accounts are recommended to the City Council for write -off. Once an item has been billed it takes Council action to remove it from the City's records. (Exception: write -offs of Municipal Court delinquencies are authorized by the Municipal Court Judges.) Page 1 of 5 RECURRING RECEIVABLES Downtown Yakima Business Improvement District - Annually /Quarterly (DYBID) — This assessment began in December 2008 and was renewed in 2012. It replaced the Parking & Business Improvement Area (PBIA). There are two types of billings, quarterly to all property/ business owners and annual billings to all individual businesses located in this area. Annual Charges — The $11,022 in the collection column is for 63 accounts. Quarterly Charges — The $9,663 in the collection column is for 23 accounts. Fire Alarm Monitor (FAM) — There are two accounts in collection totaling $64. Front Street Business Improvement Assessment (FSBI) — A total of five accounts are in collection, totaling $800. Fruitvale Canal Billing — There is a separate irrigation fee for customers connected directly to the Fruitvale Canal. 50 accounts are billed annually. The $200 in the collection column is for three accounts. Miscellaneous Billing — Recurring billings in this category include transit bus passes, refuse charges and retiree premiums for health benefits, along with other truly miscellaneous one -time charges. The $4,642 in the collection column is for 46 accounts primarily for refuse bin charges. Intergovernmental — This category includes billings to other governmental agencies, including state agencies, counties, cities, school districts, and local police and fire departments. The current balance is $671,575, and consists primarily of the annual YAKCORPS billing (about $187,000) and the third quarter of fire service for Union Gap ($295,852). It should be noted that entities participating in YAKCORPS are given the option to pay the entire invoice when received, or split it in half. Traffic Engineering / Engineering Billing — This account is generally for sidewalk safety repairs, and currently has nothing in collection. Parking and Business Improvement Assessment (PBIA)lParking Assessments — The $20 in the collection column is for one account which is being handled by a collection agency. This PBIA expired in April 2008 and has been replaced by the Downtown Yakima Business Improvement District. Parks and Recreation Field Rental Billing — The $7,420 in the collection column is for five accounts. Police Inmate Medical Reimbursement — In May 1999, the City started billing former inmates for medical costs incurred while they were in custody. At the Municipal Court study session in January, 2001, Council determined that billing these accounts was not cost effective and directed Finance to stop billing them. The $211 in collection is for the one remaining account. Page 2 of 5 Airport The past due accounts are being reviewed for appropriate action. The $358 in the collection column is for a vendor at the Airport. The Legal department is following up on one account in the amount of $2,615 which is a delinquent lease. The Water /Wastewater Invoices and Connections — The $8,763 in collection is for 12 Water /Sewer invoices /contracts and fire hydrant meter charges, damages to Water /Sewer equipment, and utility back billings. Gambling Tax This quarter the City received $233,793 in gambling tax revenue. The year to date total is $689,260 or 79.7% of the 2015 budget. Gambling Tax Delinquencies — Exhibit II details the status of delinquent gambling tax accounts. One delinquent account, totaling $23,802, has been sent to collection. One account with payment arrangements has a total of $236 remaining due. We have informed the Gambling Commission of the status of these accounts and keep them informed of any changes in their status. When a judgment is granted the Gambling Commission can revoke the company's license. INSTALLMENT ACCOUNTS SIED Loans — Yakima County administers a program for investing in economic development in Yakima County, Supporting Investment in Economic Development (SIED). The City uses this program, which offers 1/2 grant and 1/2 loan, for infrastructure improvements and loans with the companies that benefit from the improvements. These loans have a 5 -year amortization. As of the end of the quarter there were no current accounts, as the last one was paid off in 2013. Local Improvement District (LID) — Exhibit III summarizes the status of outstanding LID receivables. The delinquent amounts are unpaid installments for prior years plus interest. As of the end of the quarter, the delinquent principal balance is $48,042. When interest of $21,673 is added, the total amount past due is $69,715. Page 3 of 5 ACCOUNTS RECEIVABLE (as of September 30, 2015) CENTRAL BILLING ACCOUNTS RECEIVABLE INSTALLMENT ACCOUNTS EXHIBIT I Status Beginning New Inv Ending Current to Over Over Balance Billed Payments Balance 90 Days 90 Days 120 Days Collection Legal $ 20,790 $ 15,513 64 2,201 575 36,631 671,575 1,220 20 8,624 211 23,496 30,932 1,334 434,635 635,073 150 20,960 166,272 278 $ 29,287 700 50 42,144 773,018 50 14,885 160,011 20,512 17,158 64 2,835 525 429,122 533,630 1,320 20 14,699 211 29,757 42,436 578,492 402,421 218,507 65,285 364,933 315,940 114,278 888,640 2,232,781 1,738,784 1,382,637 24,438 233,793 234,192 24,038 $ 913,078 $2,466,574 $1,972,977 $1,406,675 $ (100) $ Approximate $ 9,590 $ 11,022 $ Billings Recurring Receivables M Q A Dow ntow n Yak Bus Impr Dist Balance Principal Interest Payments - Annual (DYBIDA) 584 - 288 Quarterly (DYBID) 800 250 - Fire Alarm Monitor (FAM) 325 - Front Street Business Impr (FSBI) 5,273 25 Fruitvale Canal Billing (FC) 340,372 - 50 Miscellaneous 100 - - Intergovernmental 600 25 25 Traffic Eng./ Engineering 2 1 - Parking & Bus Impr Assess (PBIA) - - Parks & Recreation (WEED) 15 - Police Inmate Medical Reimb (IMED) - 211 Airport 350 9,310 Water/WW Invoice & Connections City of Yakima 75 - 2 Terrace Heights /Union Gap 4 4 1 Sub -total Receivables 1,146 305 366 Gambling Tax - 20 - Total 1,146 325 366 INSTALLMENT ACCOUNTS EXHIBIT I Status Beginning New Inv Ending Current to Over Over Balance Billed Payments Balance 90 Days 90 Days 120 Days Collection Legal $ 20,790 $ 15,513 64 2,201 575 36,631 671,575 1,220 20 8,624 211 23,496 30,932 1,334 434,635 635,073 150 20,960 166,272 278 $ 29,287 700 50 42,144 773,018 50 14,885 160,011 20,512 17,158 64 2,835 525 429,122 533,630 1,320 20 14,699 211 29,757 42,436 578,492 402,421 218,507 65,285 364,933 315,940 114,278 888,640 2,232,781 1,738,784 1,382,637 24,438 233,793 234,192 24,038 $ 913,078 $2,466,574 $1,972,977 $1,406,675 $ (100) $ Beginning Quarterly Activity $ 9,590 $ 11,022 $ 1,798 Prinicpal Total 5,697 9,663 - Balance Principal Interest Payments - 64 584 (100) 1,551 800 - - 325 200 404,941 5,273 14,266 4,642 340,372 - 193,258 - 100 100 1,120 - - - - 20 6,075 1,204 7,420 - - 211 16,539 736 9,310 358 2,615 199,493 10,251 8,763 114,278 1,084,078 6,009 246,573 43,162 2,615 - - 236 23,802 - $1,084,078 6 009 246 810 66 964 2 615 Approximate Original Beginning Quarterly Activity Ending Delinquent Billings Principal Prinicpal Total Principal Interest & Total Installment Receivables M Q A Balance Balance Principal Interest Payments Balance Principal Penalties Past Due LID Assessments 175 $ 1,773,787 $ 295,087 n/a n/a $ 1,466 $ 293,621 $ 48,042 $ 21,673 $ 69,715 (1) Billed annually in July of each year. Page 4 of 5 Legend: M= Monthly Q= Quarterly A= Annually EXHIBIT II City of Yakima SUMMARY OF GAMBLING TX DELINQUENCY (as of September 30, 2015) Account(s) Sent to Collection: Michael's Tavern (2nd, 3rd &4th Qtr08) Michael's Tavern (1st -4th Qtr 13) Michael's Tavern (1st - 2nd Qtr 14) Account With Payment Arrangements: Brews & Cues (1st -4th Qtr 10) Total LID ASSESSMENT RECEIVABLES (as of September 30, 2015) $ 8,082 11,938 3,781 23,802 236 $ 24,038 Quarterly Principal Activity Beginning #of LID # - Description Accts 1052 - Willow Area Watermain 2 1056 - S. 7th, 8th, & 9th Avenue Sewer 16 1057 - N. 84th Avenue & Hawthorne Drive Sewer 8 1058 - N. 95th Avenue, 94th Place, W. Yakima Avenue Sewer 13 1060 - N. 85th Avenue & Kail Drive Sewer 10 1061 - Simpson Lane Sewer 53 Total $ 48,042 102 $ 8,082 11,938 3,781 23,802 236 $ 24,038 Quarterly Principal Activity Beginning Ending Balance Payments Balance $ 399 $ - $ 399 10,398 315 10,083 22,972 - 22,972 13,054 - 13,054 69,440 732 68,708 178,824 419 178,405 $ 295,087 $ 1,466 $ 293,621 Page 5 of 5 EXHIBIT III Delin Total Principal Interest Past Due $ 399 $ 28 $ 427 3,103 407 3,510 14,315 7,433 21,748 6,715 3,560 10,275 1,634 1,144 2,778 21,875 9,101 30,976 $ 48,042 $ 21,673 $ 69,715