6.2 BID #1 Accounts Receivable
CITY OF SALINA
REQUEST FOR CITY COMMISSION ACTION
DATE
04/1 9/04
TIME
4:00 P.M.
AGENDA SECTION
NO:
ORIGINATING DEPARTMENT:
APPROVED FOR
AG EN DA:
6
ITEM
NO:
2
CITY MANAGER'S OFFICE
BY: Dennis M. Kissinger
City Manager
BY:
Item:
Business Improvement District #1 Accounts Receivable Recommendations.
Back~round:
In the Fall of 2003, City staff worked with the B.I.D. staff and Board on financial planning. This
planning included establishing target ranges for year-end cash balance, year-end accounts
receivable and year-end financial obligations.
B.I.D. service fees are established by ordinance and are legal obligations to the City of Salina.
December 31, 2003 accounts receivable significantly exceeded the target range established. April
1 st City staff review identified 28 of the total 250 accounts as significantly delinquent, and
accounting for the majority of the receivables concern. Since that review, two balances have been
appropriately paid, leaving 26 "problem" accounts.
At an April 5 Study Session, the City Commission was briefed on this issue, including two options
for a collection process. The B.I.D. Board of Advisors considered this matter at its April 13
meeting. After discussion, the Board voted to recommend the City not create any type of "amnesty
program" for late fees, but to proceed with normal collection methods, following a "final letter" of
communication with the subject business owners.
Recommended Action:
Accept recommendation from the B.I.D. Board of Advisors and authorize staff to proceed with
communication and general collection process for significantly delinquent service fee accounts. No
formal action is required for staff and the City Attorney to proceed.