B.I.D. Accounts Receivables
NOTES FOR CITY COMMISSION
STUDY SESSION - April 5, 2004
Business Improvement District (B.I.D.) #1
Accounts Receivable Issues
1.
City has just over 250 accounts in B.I. O. which pay service fees.
2.
In Fall 2004, City Manager worked with B.I.O. staff and Board on Financial
Planning, including establishing target ranges for year-end cash balance,
year-end accounts receivable, and year-end financial obligations.
In order to meet financial goals, attention must be paid to all aspects.
3.
Year-end total 2003 accounts receivable exceeded $12,000. Target range
is $6,500 to $8,500. Over $5,000 in receivables exceeded 90 days
delinquency.
4.
City staff identified approximately 28 accounts (11 % of total) which are
significantly delinquent and/or consistent payment problems. Those 28
accounts involve almost $10,000 in receivables.
5.
City charges by ordinance, $5.00 per month late fees. These can total
significant amounts in an account over time. The 28 target accounts have
accrued approximately $2,600 in late fees.
Options:
1.
Develop plan to initiate overall collection effort for all accounts between now
and July 1, 2004. Possible use of a "quasi-amnesty" to allow waiver of past
late fees. Followed by active formal collection action on those who have not
resolved 90-day account issues.
2.
Initiate collection action against the 28 significantly delinquent accounts. No
amnesty program.
Note: Based on feedback and discussion with Commissioners, issue will be
discussed with B.I.O. Board on April 13. Action item for City Commission on April
19 agenda.