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Home My WebLink About02/16/2016 05B 4th Quarter 2015 Accounts Receivable Status Report a;� ovi enwo BUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDA STATEMENT Item No. 5.B. For Meeting of: February 16, 2016 ITEM TITLE: 4th Quarter 2015 Accounts Receivable Status Report SUBMITTED BY: Cindy Epperson, Director of Finance and Budget, 576 -6771 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 I I -- Gambling Delinquency Detail • Exhibit III — Local Improvement District (LID) Receivables The outstanding balance of recurring receivables billed through Central Billing as of December 31, 2015, is $1,353,640 which includes $1,329,602 for General Receivables and $24,038 for Gambling Taxes. The outstanding balance for Installment Accounts that have been billed as of December 31, 2015 is $71,297 which is for LID Assessments. It should be noted that items approved to be written -off by City Council in December 2015 have been subtracted from these outstanding balances. ITEM BUDGETED: NA STRATEGIC PRIORITY: Public Trust and Accountability APPROVED FOR SUBMITTAL: Interim City Manager STAFF RECOMMENDATION: Accept Report BOARD/COMMITTEE RECOMMENDATION: ATTACHMENTS: Description Upload Date Type D 40) Otr 2015 Accouas IRecomble Report 2/1/2016 C;o\er Memo City of Yakima FINANCE DEPARTMENT STAFF REPORT February 11, 2016 SUBJECT: Accounts Receivable Status Report 4th 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 December 31, 2015. CENTRAL BILLING ACCOUNTS RECEIVABLE Exhibit I is a summary by category (type) of the accounts billed through Central Receivables as of December 31, 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.) The write -offs approved by Council in December 2015 have been removed from the balances in these reports. 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 $10,622 in the collection column is for 60 accounts. Quarterly Charges — The $9,050 in the collection column is for 22 accounts. Fire Alarm Monitor (FAM) — There are two accounts in collection totaling $64. Front Street Business Improvement Assessment (FSBI) — A total of four accounts are in collection, totaling $700. Fruitvale Canal Billing — There is a separate irrigation fee for customers connected directly to the Fruitvale Canal. 50 accounts are billed annually. The $150 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 $2,522 in the collection column is for 27 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 $275,343 and consists primarily of the annual Yakima School District Resource Officer billing ($201,426). It should be noted that entities participating in YAKCORPS are given the option to pay the entire annual 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. Parks and Recreation Field Rental Billing — The $6,252 in the collection column is for three accounts. 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 $8,071 in collection is for 11 Water /Sewer invoices /contracts and fire hydrant meter charges, damages to Water /Sewer equipment, and utility back billings. Page 2 of 5 Gambling Tax This quarter the City received $216,564 in gambling tax revenue. The year to date total is $905,824 or 104.7% 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 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 $49,163. When interest of $22,134 is added, the total amount past due is $71,297. Page 3 of 5 EXHIBIT I ACCOUNTS RECEIVABLE (as of December 31, 2015) CENTRAL BILLING ACCOUNTS RECEIVABLE Approximate Quarterly Activity Status Billings Beginning New Inv Payments/ Ending Current to Over Over Recurring Receivables M Q A Balance Billed Write -offs Balance 90 Days 90 Days 120 Days Collection Legal Downtown Yak Bus Impr Dist Annual (DYBIDA) - - 288 $ 20,512 $ - $ 5,140 $ 15,372 $ (100) $ - $ 4,850 $ 10,622 $ - Quarterly (DYBID) - 250 - 17,158 31,213 30,154 18,217 2,439 - 6,728 9,050 - Fire Alarm Monitor (FAM) - - - 64 - - 64 - - - 64 - Front Street Business Impr (FSBI) - 25 - 2,835 1,334 1,034 3,135 500 - 1,935 700 - Fruitvale Canal Billing (FC) - - 50 525 - 250 275 (25) - 150 150 - Miscellaneous 100 - - 429,122 38,402 34,929 432,596 12,387 513 417,173 2,522 - Intergovernmental 600 25 25 533,630 879,461 1,137,748 275,343 261,369 - 13,974 - - Traffic Eng./ Engineering 2 1 - 1,320 200 150 1,370 150 50 1,170 - - Parks & Recreation (WEED) 15 - - 14,699 17,194 2,451 29,442 15,911 995 6,284 6,252 - Airport 350 - - 29,757 258,838 241,294 47,302 34,356 1,060 8,914 358 2,615 Water/WW Invoice & Connections City of Yakima 75 - 2 218,507 1,350,771 1,062,791 506,487 461,783 - 36,633 8,071 - Terrace Heights/Union Gap 4 4 1 114,278 369,992 484,270 - - - - - - Sub -total Receivables 1,146 305 366 1,382,407 2,947,405 3,000,210 1,329,602 788,771 2,618 497,810 37,788 2,615 Gambling Tax - 20 - 24,038 216,564 216,563 24,038 - - 236 23,802 - Total 1,146 325 366 $1,406,445 $3,163,969 $3,216,774 $1,353,640 $ 788,771 $ 2,618 $498,046 $ 61,590 $ 2,615 INSTALLMENT ACCOUNTS 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 $ 293,621 n/a n/a $ 11,247 $282,374 $ 49,163 $ 22,134 $ 71,297 (1) Billed annually in July of each year. Legend: M = Monthly Q = Quarterly A = Annually Page 4 of 5 EXHIBIT II City of Yakima SUMMARY OF GAMBLING TX DELINQUENCY (as of December 31, 2015) Account(s) Sent to Collection: Michael's Tavern (2nd, 3rd & 4th Qtr 08) $ 8,082 Michael's Tavern (1st - 4th Qtr 13) 11,938 Michael's Tavern (1st - 2nd Qtr 14) 3,781 23,802 Account With Payment Arrangements: Brews & Cues (1st - 4th Qtr 10) 236 Total $ 24,038 EXHIBIT III LID ASSESSMENT RECEIVABLES (as of December 31, 2015) Quarterly Principal Activity Delinquent # of Beginning Ending Total LID # - Description Accts Balance Payments Balance Principal Interest Past Due 1052 - Willow Area Watermain 2 $ 399 $ - $ 399 $ 399 $ 28 $ 427 1056 - S. 7th, 8th , & 9th Avenue Sewer 12 10,398 3,310 7,088 2,496 184 2,680 1057 - N. 84th Avenue & Hawthorne Drive Sewer 8 22,972 - 22,972 14,315 7,433 21,748 1058 - N. 95th Avenue, 94th Place, W. Yakima Avenue Sewer 12 13,054 - 13,054 6,715 3,560 10,275 1060 - N. 85th Avenue & Kail Drive Sewer 10 69,440 2,660 66,780 1,592 1,089 2,681 1061 - Simpson Lane Sewer 49 178,824 5,277 173,547 23,646 9,840 33,486 Total 93 $ 295,087 $ 11,247 $ 283,840 $ 49,163 $ 22,134 $ 71,297 Page 5 of 5