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Home My WebLink About05/17/2016 05C 1st Quarter 2016 Accounts Receivable Status ReportBUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDASTATEMENT Item No. 5.C. For Meeting of: May 17, 2016 ITEM TITLE: 1 st Quarter 2016 Accounts Receivable Status Report SUBMITTED BY: Cindy Epperson, Director of Finance & 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 I I -- Gambling Delinquency Detail Exhibit III -- Local Improvement District (LID) Receivables The outstanding balance of recurring receivables billed through Central Billing as of March 31, 2016 is $1,325,947 which includes $1,301,909 for General Receivables and $24,038 for Gambling Taxes. The outstanding balance for Installment Accounts that have been billed as of March 31, 2016 is $78,907 for LID Assessments. ITEM BUDGETED: NA STAFF RECOMMENDATION: Accept Report BOARD /COMMITTEE RECOMMENDATION: ATTACHMENTS: Description Upload Date Type 1st Qtr 2016 Accounts Receimable 4/2912016 Co%er Memo City of Yakima FINANCE DEPARTMENT STAFF REPORT May 12, 2016 SUBJECT: Accounts Receivable Status Report 1St Quarter 2016 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 March 31, 2016. CENTRAL BILLING ACCOUNTS RECEIVABLE Exhibit I is a summary by category (type) of the accounts billed through Central Receivables as of March 31, 2016. 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 $13,621 in the collection column is for 79 accounts. Quarterly Charges — The $9,366 in the collection column is for 23 accounts. Fire Alarm Monitor (FAM) — There is one account in collection totaling $30. Front Street Business Improvement Assessment (FSBI) — A total of six accounts are in collection, totaling $1,200. Fruitvale Canal Billing — There is a separate irrigation fee for customers connected directly to the Fruitvale Canal. 50 accounts are billed annually. The $225 in the collection column is for six 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 $10,168 in the collection column is for 30 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 $517,897 and consists primarily of the Union Gap fire billing ($303,248 paid on April 15, 2016). 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 Billing — This account includes billings for pool and field rentals, along with other program charges. 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 $6,938 in collection is for 10 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 $249,231 in gambling tax revenue. This total is 27.2% of the 2016 budget of $917,000. 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 $55,406. When interest of $23,501 is added, the total amount past due is $78,907. Page 3 of 5 EXHIBIT I ACCOUNTS RECEIVABLE (as of March 31, 2016) CENTRAL BILLING ACCOUNTS RECEIVABLE Legend: M = Monthly Q = Quarterly A = Annually Page 4 of 5 Approximate Quarterly Activity Status Beginning New Inv Payments/ Ending Current to Over Over Billings 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) - - 280 $ 15,372 $ 28,100 $ 20,321 $ 23,151 $ 8,480 $ - $ 1,050 $ 13,621 $ - Quarterly (DYBID) - 265 - 18,217 41,387 35,550 24,053 7,485 - 7,202 9,366 - Fire Alarm Monitor (FAM) - - - 64 - 34 30 - - - 30 - Front Street Business Impr (FSBI) - 25 - 3,135 1,334 716 3,753 534 - 2,019 1,200 - Fruitvale Canal Billing (FC) - - 50 275 - - 275 - - 50 225 - Miscellaneous 110 - - 432,596 92,258 89,574 435,280 13,000 1,857 410,255 10,168 - Intergovernmental 525 20 30 275,343 1,614,111 1,371,557 517,897 512,366 - 5,531 - - Traffic Eng./ Engineering 3 - - 1,370 150 150 1,370 150 50 1,170 - - Parks &Recreation (WEED) 10 - - 29,442 3,570 12,716 20,296 1,950 10 12,084 6,252 - Airport 400 - - 47,302 168,259 172,021 43,539 38,012 1,127 1,429 358 2,615 Water/WW Invoice & Connections City of Yakima 90 - 5 506,487 1,303,392 1,601,875 208,004 187,154 5,943 7,968 6,938 - Terrace Heights/Union Gap 4 4 1 - 110,090 85,829 24,262 24,262 - - - - Sub -total Receivables 1,142 314 366 1,329,602 3,362,652 3,390,345 1,301,909 793,392 8,987 448,758 48,157 2,615 Gambling Tax - 20 - 241038 249,231 249,231 24,038 - - 236 23,802 - Total 1,142 334 366 $1,353,640 $3,611,883 $3,639,576 $1,325,947 $ 793,392 8 987 448 995 71 959 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 $ 282,374 n/a n/a $ 29,714 $ 252,660 $ 55,406 $ 23,501 $ 78,907 Legend: M = Monthly Q = Quarterly A = Annually Page 4 of 5 EXHIBIT II City of Yakima SUMMARY OF GAMBLING TAX DELINQUENCY (as of March 31, 2016) Account(s) Sent to Collection: Michael's Tavern (2nd, 3rd & 4th Qtr08) Michael's Tavern (1st -4th Qtr13) Michael's Tavern (1st - 2nd Qtr 14) Account With Payment Arrangements: Brews & Cues (1st -4th Qtr 10) Total $ 8,082 11,938 3,781 23,802 236 $ 24,038 LID ASSESSMENT RECEIVABLES (as of March 31, 2016) al Beginning #of LID # - Description Accts 1052 - Willow Area Watermain 2 1056 - S. 7th, 8th, & 9th Avenue Sewer 12 1057 - N. 84th Avenue & Hawthorne Drive Sewer 8 1058 - N. 95th Avenue, 94th Place, W. Yakima Avenue Sewer 12 1060 - N. 85th Avenue & Kail Drive Sewer 10 1061 - Simpson Lane Sewer 49 Total 93 al Beginning Ending Balance Payments Balance $ 399 $ - $ 399 7,088 4,427 2,661 22,972 - 22,972 13,054 - 13,054 66,780 9,585 57,195 173,547 15,702 157,845 $ 283,840 $ 29,714 $ 254,126 Page 5 of 5 EXHIBIT III Delinquent 31,316 12,256 43,572 $ 55,406 $ 23,501 $ 78,907 Total Principal Interest Past Due $ 399 $ 28 $ 427 2,661 224 2,885 14,315 7,433 21,748 6,715 3,560 10,275 31,316 12,256 43,572 $ 55,406 $ 23,501 $ 78,907