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HomeMy WebLinkAboutQ4 2016 Financial ReportOverview AGENDA BILL APPROVAL FORM Agenda Subject: 4th Quarter 2016 Financial Report Date: March 20, 2017 Department: Finance Attachments: Quarterly Financial Report Budget Impact: $0 Administrative Recommendation: For discussion only. Background Summary: The quarterly financial report summarizes the general state of Citywide financial affairs and highlights significant items or trends that the City Council should be aware of. The attachment provides the fourth quarter 2016 status report based on financial data available as of January 23, 2017 for the period ending December 31, 2016 and sales tax information representing business activity that occurred through October 2016. Staff: Coleman Meeting Date: March 27, 2017 Item Number: Quarterly Financial Report Through Q4-2016 General Fund Summary 1 Quarterly Financial Report Through Q4-2016 December 2016 Financial ReportGeneral Fund2015Summary of Sources and UsesAnnualBudgetYE BudgetYE ActualYE ActualAmountOperating RevenuesProperty Tax617,733,500$ 17,733,500$ 17,932,830$ 17,199,418$ 199,3301.1 %Sales Tax7-814,572,000 14,572,000 14,717,540 14,573,164 145,5401.0 %Sales Tax -Annexation Credit1,912,000 1,912,000 2,006,028 1,988,523 94,0284.9 %Criminal Justice Sales Tax1,747,000 1,747,000 1,968,679 1,815,833 221,67912.7 %Brokered Natural Gas Tax282,000 282,000 223,900 248,670 (58,100)(20.6)%City Utilities Tax9-103,521,200 3,521,200 3,959,131 3,642,218 437,93112.4 %Admissions Tax333,600 333,600 378,760 355,170 45,16013.5 %Electric Tax103,297,700 3,297,700 3,525,357 3,232,503 227,6576.9 %Natural Gas Tax10852,000 852,000 946,959 1,002,334 94,95911.1 %Cable TV Franchise Fee11906,700 906,700 977,736 925,835 71,0367.8 %Cable TV Franchise Fee -Capital64,000 64,000 66,315 69,680 2,3153.6 %Telephone Tax101,620,000 1,620,000 1,494,354 1,661,505 (125,646)(7.8)%Garbage Tax (external)10106,000 106,000 124,007 114,870 18,00717.0 %Leasehold Excise Tax33,000 33,000 204,446 66,544 171,446519.5 %Gambling Excise Tax334,400 334,400 494,472 212,939 160,07247.9 %Taxes subtotal47,315,100$ 47,315,100$ 49,020,516$ 47,109,207$ 1,705,416$ 3.6 %Business License Fees13-14221,000$ 221,000$ 224,876$ 281,654$ 3,8761.8 %Building Permits12-131,190,000 1,190,000 2,008,970 1,209,836 818,97068.8 %Other Licenses & Permits533,600 533,600 750,580 582,986 216,98040.7 %Intergovernmental (Grants, etc.)14-155,647,293 5,647,293 5,737,079 5,317,259 89,7861.6 %Charges for Services:General Government Services1667,200 67,200 76,218 79,413 9,01813.4 %Public Safety16520,300 520,300 638,440 479,061 118,14022.7 %Development Services Fees17680,600 680,600 1,046,249 1,400,292 365,64953.7 %Culture and Recreation182,105,080 2,105,080 2,316,824 2,317,351 211,74410.1 %Fines and Penalties19-20796,180 796,180 905,921 938,775 109,74113.8 %Fees/Charges/Fines subtotal11,761,253$ 11,761,253$ 13,705,158$ 12,606,628$ 1,943,905$ 16.5 %Interest and Other Earnings2035,200$ 35,200$ 110,800$ 57,464$ 75,600214.8 %Rents, Leases and Concessions20630,600 630,600 783,930 729,969 153,33024.3 %Contributions and Donations2032,000 32,000 32,435 39,712 4351.4 %Other Miscellaneous20-21157,800 157,800 286,520 218,832 128,72081.6 %Transfers In220,926 220,926 217,482 97,443 (3,444)(1.6)%Insurance Recoveries -Capital & Operating25,000 25,000 83,737 153,041 58,737234.9 %Other Revenues subtotal1,101,526$ 1,101,526$ 1,514,904$ 1,296,461$ 413,378$ 37.5 %Total Operating Revenues60,177,879$ 60,177,879$ 64,240,577$ 61,012,296$ 4,062,698$ 6.8 %Operating ExpendituresCouncil & Mayor1,135,833$ 1,135,833$ 1,065,395$ 912,825$ 70,4386.2 %Administration 1,350,722 1,350,722 1,197,355 1,171,634 153,36711.4 %Community & Human Services1,329,547 1,329,547 872,023 1,222,557 457,52334.4 %Municipal Court & Probation2,280,889 2,280,889 2,242,473 2,239,983 38,4161.7 %Human Resources1,406,554 1,406,554 1,283,702 1,050,803 122,8528.7 %Finance1,300,773 1,300,773 1,169,633 1,221,253 131,14010.1 %City Attorney2,194,830 2,194,830 1,883,009 1,901,141 311,82114.2 %Community Development4,731,841 4,731,841 4,109,092 3,882,709 622,74813.2 %Jail -SCORE5,583,542 5,583,542 4,019,473 3,658,863 1,564,06928.0 %Police23,813,652 23,813,652 23,430,625 22,085,780 383,0271.6 %Public Works42,809,335 2,809,335 2,945,815 2,620,478 (136,480)(4.9)%Parks, Arts & Recreation11,584,205 11,584,205 11,322,293 10,816,576 261,9122.3 %Streets3,466,563 3,466,563 3,209,370 3,016,275 257,1947.4 %Non-Departmental5,489,627 5,489,627 3,934,038 5,302,250 1,555,58928.3 %Total Operating Expenditures68,477,914$ 68,477,914$ 62,684,298$ 61,103,128$ 5,793,616$ 8.5 %PageRef20162016 YE Budget vs. ActualFavorable (Unfavorable)Percentage 2 Quarterly Financial Report Through Q4-2016 Executive Summary This Executive Summary provides an overview of the City’s overall financial position for the fiscal period ending December 31, 2016, reflecting financial data available as of January 23, 2017. General Fund: Through December 2016, General Fund revenues totaled $64.2 million compared to a budget of $60.2 million, and were $3.2 million higher than the revenues collected during the same period in 2015. Some notable variances to budget this year include: • Property tax collections in 2016 totaled $17.9 million, which is 1.1% or $199,000 above budget expectations and exceed 2015 collections by $733,000, or 4.3%. [page 6] • General Fund retail sales tax revenues totaled $14.7 million, exceeding budget by 1.0% or $146,000, and exceeding 2015 collections by $144,000. The primary area of significant increase in sales activity compared to 2015 was the services category. [pages 7-8] Collections in criminal justice sales tax revenues exceeded budget by $222,000, or 12.7%. • The Other Taxes category performed better than budget in 2016. City utility tax revenues exceeded budget by $438,000 or 12.4%, predominately due to higher than budgeted capital system development revenues collected in the Water, Sewer and Storm funds. Electric and natural gas tax revenues collected in 2016 exceeded budget by $228,000 and $95,000, respectively. These revenues were somewhat offset by an unfavorable variance in telephone tax collections of $126,000. [pages 9-10] Year end collections of leasehold excise taxes were $171,000 above budget due to an unanticipated payment for the Emerald Downs property which is tribally owned. Gambling excise tax revenues exceeded budget by $160,000 primarily due to the timing of payments: the City’s main remitter of card game taxes paid 6 months’ worth of taxes from 2015 in the current year. • Building permit revenue collected in 2016 totaled $2.0 million, compared to 2015 collections of $1.2 million and a 2016 budget of $1.2 million. The higher than budgeted revenues were predominately due to a higher than anticipated volume of building permits as well as multiple large commercial building permits issued. [pages 12-13] • Other licenses and permit revenues exceeded budget expectations by $217,000 primarily due to higher than anticipated revenue collected for plumbing permits. This increase in revenues was a result of increased construction activity within the City. One project in particular that contributed to this influx of revenue was the permitting for the Promenade Apartment Project on 312th street. • Development services fees revenues collected in 2016 exceeded budget expectations by $366,000, or 53.7%. This is predominately due to higher than anticipated revenues collected for plan check services related to multiple single family and commercial construction projects within the City. [page 17] 3 Quarterly Financial Report Through Q4-2016 • Culture and recreation revenues collected in 2016 exceeded budget by $212,000, or 10.1%, but were flat compared to collections in 2015. Revenue sources that were significantly above budget include special events revenue and Auburn Theatre ticket sales. [page 18] • Rents, leases and concession revenues were $153,000 or 24.3% above budget, and was $54,000 more than was collected in 2015. This favorable variance is attributed to higher than anticipated revenues collected for City owned facility rentals and parking lot fees. [page 20] Ending 2016 fund balances will not be finalized until approximately June 2017 pending final year-end adjustments and certification by the State Auditor’s Office. Once the final ending 2016 fund balances are available, budgeted beginning 2017 fund balances will be reconciled and adjusted accordingly. General Fund expenditures in 2016 totaled $62.7 million compared to a budget of $68.5 million, representing an 8.5% favorable variance to budget. All departments operated within their allocated budget in 2016 with the exception of the Public Works department. This department ended the year $136,000, or 4.9% over budget. The variance to budget is seen in salary and benefit expenditures, as project engineers charged more of their time to general fund projects versus transportation and utility projects during the year. General Fund expenditures in 2016 were $1.6 million, or 2.6%, higher than in 2015. Salary and benefit costs increased by $1.6 million, or 5.0%, compared to 2015. This year-over-year increase is due primarily to an increase in Council approved FTEs (Full Time Equivalents) and increased costs associated with healthcare and pension benefits. In addition, charges for services paid to Valley Communications for 911 services increased year-over-year by $490,000, or 20.4%. These increased expenditures were somewhat offset by a reduction in intergovernmental expenditures by $713,000 compared to 2015. $60.2 M $68.5 M $64.2 M $62.7 M $0.0$10.0$20.0$30.0$40.0$50.0$60.0$70.0$80.0RevenuesExpenditures$ MillionsGeneral Fund 2016 Revenues vs. Expenditures2016 YE Actual2016 YE Budget 4 Quarterly Financial Report Through Q4-2016 Street Funds: The City’s three street funds are special revenue funds where the revenue sources and expenditures are legally restricted. These funds are used for street capital construction projects, local street repair and arterial street repair and preservation projects. In 2016, Arterial Street Fund revenues totaled $4.2 million as compared to collections of $4.7 million for 2015; expenditures totaled $6.3 million as compared to $6.9 million spent last year. Local Street Fund revenues exceeded budget expectations the year by $692,000, or 39.2%, due to higher than anticipated sales tax revenues from local construction projects; expenditures were $2.1 million as compared with a budget of $2.9 million. Lastly, the Arterial Street Preservation Fund revenues totaled $2.1 million as compared to a budget of $3.1 million, while expenditures totaled $1.1 million. The difference is largely due to grant revenues related to the Auburn Way North project, which has been delayed to 2017. [pages 24–29] Proprietary Funds: The City’s seven proprietary funds account for operations with revenues primarily provided from user fees, charges or contracts for services. At the end of 2016, Water Fund operating revenues exceeded expenditures by $3.4 million compared to $3.3 million in 2015. The Sewer Fund ended the year with expenditures exceeding revenues by $1.4 million due to a transfer of $3.0 million from Sewer operations to the associated capital subfund; excluding this transfer, the fund ended with $1.6 million in income compared to $1.4 million in 2015. The Sewer-Metro Fund operating revenues exceeded expenditures by $297,000 as compared to $188,000 in 2015. Lastly, the Stormwater Fund ended the year with revenues exceeding expenditures by $97,000 compared to $3.4 million in 2015. This variance is largely due to a $2.0 million transfer from Stormwater operations to the associated capital subfund in 2016, and the receipt of over $1.0 million in grant revenues from the Department of Ecology in 2015. [pages 31–32] Internal Service Funds: Internal service funds provide services to other City departments and include functions such as Insurance, Worker’s Compensation, Facilities, Innovation and Technology, and Equipment Rental. All funds have sufficient revenues to cover year-end expenditures. [page 32] Investment Portfolio: The City’s total cash and investments at the end of the 2016 totaled $128.0 million, and compares to $115.1 million at the end of 2015. [attachment] 5 Quarterly Financial Report Through Q4-2016 General Fund Revenues The combined total of property, sales/use, utility, gambling, and admissions taxes provides approximately 80% of all resources supporting general governmental activities. The following section provides additional information on these sources. Property Tax collections in 2016 totaled $17.9 million and were $199,000, or 1.1%, above budget expectations. Property Tax revenue collected in 2016 exceeded collections in 2015 by $733,000, or 4.3%. The majority of property tax revenues are collected during the months of April and October, coinciding with the due dates for the County property tax billings. $0.0$2.0$4.0$6.0$8.0$10.0$12.0$14.0$16.0$18.0$20.0JanFebMarAprMayJunJulAugSepOctNovDecMillionsProperty Taxes2016 YE Budget2016 YE Actual2015 YE Actual 6 Quarterly Financial Report Through Q4-2016 Sales tax collections in 2016 totaled $17.0 million, of which $14.7 million was distributed to the General Fund and $2.3 million was distributed to the Local Street Fund (SOS) program.* Total sales tax revenue distributions to the General Fund in 2016 exceeded budget expectations by $146,000, or 1.0%. * Beginning in 2013, Local Street Fund (Fund 103) street repairs have been funded from sales taxes on construction. The total amount transferred in 2016 was $2,292,280. The graphic above presents sales taxes under the current policy. $0.0$2.0$4.0$6.0$8.0$10.0$12.0$14.0$16.0JanFebMarAprMayJunJulAugSepOctNovDecMillionsSales & Use Tax(Net of Revenue from Construction)2016 YE Budget2016 YE Actual2015 YE Actual$12.9$13.0$12.4$13.9$14.6$14.7$0.0$2.0$4.0$6.0$8.0$10.0$12.0$14.0$16.0$18.0$20.0201120122013201420152016 YEMillionsSales and Use TaxGeneral Fund OnlyActuals 7 Quarterly Financial Report Through Q4-2016 The following table breaks out the City’s base sales tax, excluding Criminal Justice and Annexation Credit Sales Tax, by major business sector. Total sales tax revenue collected in 2016 totaled $17.0 million and exceeded prior year collections by $101,000, or 0.6%. The business sectors showing the largest increase in revenues compared to last year were the service and wholesale trade industries. Sales tax revenue on construction, which is transferred to the Local Street Fund (Fund 103) for local street repair and maintenance, totaled $2,292,000, which is $5,000 less than what was collected in 2015, and exceeds the 2016 budget by $682,000, or 42.4%. 20152016Component GroupActualActualAmountConstruction2,296,863$ 2,292,280$ (4,583)$ (0.2)%Manufacturing861,555761,091(100,465)(11.7)%Transportation & Warehousing65,67199,43933,76851.4 %Wholesale Trade1,228,9191,264,97636,0582.9 %Automotive3,706,5353,659,497(47,038)(1.3)%Retail Trade4,988,8984,852,592(136,306)(2.7)%Services3,645,5513,970,042324,4918.9 %Miscellaneous71,54867,105(4,443)(6.2)%YE Total16,865,540$ 16,967,023$ 101,482$ 0.6 %Change from 2015Through December Comparison of Sales Tax Collections by SIC GroupPercentage$0.0$0.2$0.4$0.6$0.8$1.0$1.2$1.4$1.6$1.8$2.0$2.2$2.4JanFebMarAprMayJunJulAugSepOctNovDecMillionsSales Tax on Construction Transfer 2016 YE Budget2016 YE Actual2015 YE Actual 8 Quarterly Financial Report Through Q4-2016 Utility Taxes consist of interfund taxes on City utilities (Water, Sewer, Storm and Solid Waste) and taxes on external utilities (Electric, Natural Gas, Telephone and Solid Waste). Utility taxes collected in 2016 totaled $10.0 million and exceeded budget by $653,000, or 6.9%. $1.9$1.8$2.3$2.3$0.0$0.5$1.0$1.5$2.0$2.5201120122013201420152016 YEMillionsSales Tax On Construction RevenueActuals$0.0$2.0$4.0$6.0$8.0$10.0$12.0JanFebMarAprMayJunJulAugSepOctNovDecMillionsUtility Tax2016 YE Budget2016 YE Actual2015 YE Actual 9 Quarterly Financial Report Through Q4-2016 Favorable variances in City interfund utility tax, electric tax, natural gas tax and solid waste tax revenues more than offset lower than expected collections from the telecommunication industry. City interfund utility tax revenue was $438,000 or 12.4% higher than the budget. A significant portion of this favorability to budget is predominately due to higher than budgeted capital system development revenues collected in the Water, Sewer and Storm funds. 201520162016Utility Tax TypeYE ActualYE BudgetYE ActualAmountAmountCity Interfund Utility Taxes3,642,218$ 3,521,200$ 3,959,131$ $ 316,913 8.7 % $ 437,931 12.4 %Electric 3,232,5033,297,7003,525,357292,855 9.1 %227,657 6.9 %Natural Gas1,002,334852,000946,959(55,375)(5.5)%94,959 11.1 %Telephone1,661,5051,620,0001,494,354(167,151)(10.1)%(125,646)(7.8)%Solid Waste (external)114,870106,000124,0079,137 8.0 %18,007 17.0 %YE Total9,653,430$ 9,396,900$ 10,049,809$ $ 396,379 4.1 % $ 652,909 6.9 %Through DecemberUtility Tax by Type2016 vs. 2015 Actual2016 vs. BudgetPercentagePercentage 10 Quarterly Financial Report Through Q4-2016 Cable TV Franchise Fees, which are collected quarterly, totaled $978,000 and exceeded budget by $71,000, or 7.8%. $0$100$200$300$400$500$600$700$800$900$1,0001st Quarter2nd Quarter3rd Quarter4th QuarterThousandsCable TV Franchise Fee2016 YE Budget2016 YE Actual2015 YE Actual 11 Quarterly Financial Report Through Q4-2016 Licenses and Permits include business licenses, building permits, plumbing, electric and other licenses and permit fees. Building permit fees and business licenses make up about 70% of the annual budgeted revenue in this category. Building permit revenues collected in 2016 totaled $2.0 million, compared to 2015 collections of $1.2 million. 2016 building permit activity included permitting for several large commercial projects including The Reserve (a multi-family/retail project on 10th and A Street), the Promenade Apartment Complex, various projects at Costco, and the Multicare remodel project. In addition, numerous residential housing developments were permitted in 2016 – most notably Canyon Creek, Mountain View North, and Lakeland Hills Estates. Of the $2.0 million in building permit revenues collected in 2016, 50% was attributable to commercial projects in the City, and the remaining 50% was predominately single family housing permits. The total number of building permits issued in 2016 was 850 and compares to 747 issued in 2015. $0.0$0.2$0.4$0.6$0.8$1.0$1.2$1.4$1.6$1.8$2.0$2.2JanFebMarAprMayJunJulAugSepOctNovDecMillionsBuilding Permits2016 YE Budget2016 YE Actual2015 YE Actual 12 Quarterly Financial Report Through Q4-2016 Business license revenues collected in 2016 totaled $225,000, compared to a budget of $221,000. The graphic below reflects the timing of payments by business owners, where the majority of business license payments are typically collected during the first two months of the year and the last month of the year. $0$20$40$60$80$100$120$140$160$180$200$220$240$260$280$300JanFebMarAprMayJunJulAugSepOctNovDecThousandsBusiness Licenses2016 YE Budget2016 YE Actual2015 YE Actual 13 Quarterly Financial Report Through Q4-2016 Intergovernmental revenues include grants (direct and indirect Federal, state and local), compact revenue from the Muckleshoot Indian Tribe (MIT), intergovernmental, and state shared revenues. Collections in 2016 totaled $5.7 million and ended the year $90,000, or 1.6%, above budget. Favorable variances in Criminal Justice High Crime revenues and Liquor Excise Tax revenues offset the reduced revenues received in Federal and State grant monies. In 2016, grant revenues were $206,000 below budget, although this does not include Period 13 accruals that will account for the 2016 revenues to be collected for reimbursable services. Effective during the state’s 2016-2017 fiscal year budget cycle, the City of Auburn qualified for the Criminal Justice High Crime revenue distribution monies (distributions are made quarterly between July 1, 2016 through June 30, 2017). The eligibility requirements are based upon the City’s crime rate statistics – those Cities whose crime rate exceeds 125% of the statewide average qualify for the distribution. The first distribution was received in July and totaled $143,000. 14 Quarterly Financial Report Through Q4-2016 201520162016RevenueYE ActualYE BudgetYE ActualAmountAmountFederal Grants264,721$ 453,073$ 294,006$ $ 29,285 11.1 % $(159,067)(35.1)%State Grants235,772206,810162,692(73,080)(31.0)%(44,118)(21.3)%Interlocal Grants30,20749,00045,97315,767 0.0 %(3,027)(6.2)%Muckleshoot Casino Emerg.601,616630,000668,62967,013 11.1 %38,629 6.1%Intergovernmental Service18,16212,00017,304(858)(4.7)%5,304 44.2%State Shared Revenues: Streamlined Sales Tax1,951,0972,000,0001,924,487(26,610)(1.4)%(75,513)(3.8)% Motor Vehicle Fuel Tax1,072,2841,075,0001,121,11248,828 4.6 %46,112 4.3% Criminal Justice -High Crime96,50996,000285,202188,693 195.5 %189,202 197.1% Criminal Justice -Population19,94218,20020,807866 4.3 %2,607 14.3% Criminal Justice -Special Prog.73,06668,10075,8652,798 3.8 %7,765 11.4% Marijuana Enforcement9,75919,50029,42019,661 201.5 %9,920 50.9% State DUI11,30613,50011,779473 4.2 %(1,721)(12.8)% Fire Insurance Tax75,70270,00076,569867 1.1 %6,569 9.4% Liquor Excise203,184302,610352,467149,283 73.5 %49,857 16.5% Liquor Profit653,931633,500650,766(3,165)(0.5)%17,266 2.7% Total State Shared:4,166,7814,296,4104,548,474381,6939.2 %252,064 5.9%YE Total5,317,259$ 5,647,293$ 5,737,079$ 419,820$ 7.9 %89,786$ 1.6%Through December 2016Intergovernmental Revenues (Grants, Entitlements & Services)2016 vs. 2015 Actual2016 vs. Budget% Change% Change 15 Quarterly Financial Report Through Q4-2016 Charges for Services consist of general governmental services, public safety, development service fees and cultural & recreation fees. Overall, charges for services collected in 2016 totaled $4.1 compared to a budget of $3.4 million. Total revenues collected in 2016 exceeded budget by $705,000, or 20.9%. General governmental revenues collected in 2016 totaled $76,000 compared to a budget of $67,000. The majority of the favorable variance was due to increased sales related to passport services, which exceeded budget expectations by $13,000, and ended the year $9,000 higher than 2015 collections. Public safety revenues consist of revenues generated for Police Officer extra duty overtime, where officers are contracted for services and reimbursement is made by the hiring contractor. Effective June 2014, public safety revenue also includes reimbursement from the Muckleshoot Indian Tribe (MIT) for a full-time dedicated Police Officer and associated expenditures. Public safety revenues collected in 2016 totaled $638,000, compared to a budget of $520,000. Revenues collected increased by $159,000 over 2015 collections, primarily due to a 29.0% increase in billable hours for extra duty overtime in 2016 compared to 2015. 201520162016RevenueYE ActualYE BudgetYE ActualAmountAmountGeneral Government79,413$ 67,200$ 76,218$ $ (3,195)(4.0)% $ 9,018 13.4 %Public Safety479,061520,300638,440159,379 33.3 %118,140 22.7 %Development Services1,400,292680,6001,046,249(354,043)(25.3)%365,649 53.7 %Culture & Recreation2,317,3512,105,0802,316,824(526)(0.0)%211,744 10.1 %YE Total4,276,118$ 3,373,180$ 4,077,733$ (198,385)$ (4.6)% $ 704,553 20.9 %Through December 2016Charges for Services by Type2016 vs. 2015 Actual2016 vs. BudgetPercentagePercentage 16 Quarterly Financial Report Through Q4-2016 Development services fee collections, which primarily consist of plan check fees, totaled $1.0 million and exceeded budget expectations by $366,000, or 53.7%. Total plan check fees collected in 2016 totaled $759,000, compared to a budget of $550,000 and to 2015 collections of $1.1 million. Plan check revenues collected in 2016 were from numerous commercial and residential projects, including the Multicare remodel project, Holiday Inn Express, LA Fitness, improvements at Boeing as well as for Lakeland Hills Estates, Mountain View North and the Edgeview housing developments. Of the $759,000 in plan check revenues collected in 2016, 37.9% was attributable to commercial projects in the City and the remaining 62.1% was predominately single family housing projects. $0.0$0.2$0.4$0.6$0.8$1.0$1.2$1.4$1.6JanFebMarAprMayJunJulAugSepOctNovDecMillionsDevelopment Service Fees2016 YE Budget2016 YE Actual2015 YE Actual 17 Quarterly Financial Report Through Q4-2016 Culture and recreation revenues collected in 2016 totaled $2.3 million, and exceeded budget by $212,000, or 10.1%, although overall collections were unchanged from 2015. In 2016, recreation class revenues decreased compared to 2015 by $77,000. This year-over-year reduction in revenue was due to the closure of the Parks and Recreation Administration Building (PRAB) during the construction of the new Auburn Community & Event Center. The decline in recreation class revenues in 2016 was offset by increased revenues collected for Special Events (related primarily to AuburnFest which was sponsored by the City effective in 2016) and to increased revenues generated from the Cultural Arts Program, as many of the shows added in 2016 were very popular. $0.0$0.2$0.4$0.6$0.8$1.0$1.2$1.4$1.6$1.8$2.0$2.2$2.4$2.6JanFebMarAprMayJunJulAugSepOctNovDecMillionsCulture & Recreation2016 YE Budget2016 YE Actual2015 YE Actual 18 Quarterly Financial Report Through Q4-2016 Fines & Penalties include traffic and parking infraction penalties, criminal fines (including criminal traffic, criminal non traffic and other criminal offenses) as well as non-court fines such as false alarm fines. Total revenues collected in 2016 totaled $906,000, compared to a budget of $796,000. Revenues collected in 2016 were slightly reduced compared to 2015 primarily due to reduced collections in civil infraction penalties (which is primarily traffic infractions). 201520162016MonthYE ActualYE BudgetYE ActualAmountAmountCivil Penalties11,287$ 15,400$ 23,763$ $ 12,476 110.5 % $ 8,363 54.3 %Civil Infraction Penalties495,700451,600470,118(25,582)(5.2)%18,518 4.1 %Redflex Photo Enforcement15,285015,433149 1.0 %15,433 N/A%Parking Infractions141,075109,800130,567(10,508)(7.4)%20,767 18.9 %Criminal Traffic Misdemeanor59,87051,20058,885(985)(1.6)%7,685 15.0 %Criminal Non-Traffic Fines50,46846,00047,125(3,342)(6.6)%1,125 2.4 %Criminal Costs53,21141,38060,3667,155 13.4 %18,986 45.9 %Non-Court Fines & Penalties111,87980,80099,662(12,217)(10.9)%18,862 23.3 %YE Total938,775$ 796,180$ 905,921$ $ (32,854)(3.5)% $ 109,741 13.8 %Through December 2016Fines & Penalties by Type2016 vs. 2015 Actual2016 vs. BudgetPercentagePercentage$0.0$0.1$0.2$0.3$0.4$0.5$0.6$0.7$0.8$0.9$1.0JanFebMarAprMayJunJulAugSepOctNovDecMillionsFines & Penalties2016 YE Budget2016 YE Actual2015 YE Actual 19 Quarterly Financial Report Through Q4-2016 Miscellaneous revenues consist of investment earnings, income from facility rentals, contributions & donations, and other miscellaneous income, which includes the quarterly purchasing card (P-card) rebate monies. Total revenues collected in this category in 2016 totaled $1.2 million and exceeded budget expectations by $358,000, or 41.9%. Rents and leases revenue in 2016 exceeded budget by $153,000, or 24.3%, primarily due to higher than anticipated revenues generated from City owned facility rentals and increased revenues generated from City owned parking spaces. These two revenue sources exceeded budget expectations by $97,000 and $41,000 respectively. In addition, P-card rebate revenues collected in 2016 exceeded budget expectations by $80,000. 201520162016MonthYE ActualYE BudgetYE ActualAmountAmountInterest & Investments57,464$ 35,200$ 110,800$ 53,337$ 92.8 %75,600$ 214.8 %Rents & Leases729,969630,600783,93053,9617.4 %153,33024.3 %Contributions & Donations39,71232,00032,435(7,277)(18.3)%4351.4 %Other Miscellaneous Revenue218,832157,800286,52067,68830.9 %128,72081.6 %YE Total1,045,976$ 855,600$ 1,213,685$ 167,709$ 16.0 %358,085$ 41.9 %Miscellaneous Revenues by TypeThrough December 20162016 vs. 20152016 vs. BudgetPercentagePercentage 20 Quarterly Financial Report Through Q4-2016 Real Estate Excise Tax (REET) revenue is receipted into the Capital Improvement Projects Fund and is used for governmental capital projects. REET revenues collected in 2016 totaled $4.3 million, exceeding budget by $1.5 million. Although real estate excise tax revenue in 2016 greatly exceeded budget expectations, the total amount collected was $278,000 less than the amount collected in 2015 because 2015 included the sale of several large businesses in the City such as the Outlet Collection – Seattle and the Lakeland Town Center. Real estate sales in the City of Auburn in Q4-2016 represent the sale of both commercial and single family residences, including the sale of multiple vacant lots. 201520162016MonthActualBudgetActualAmountAmountJan125,089$ 97,400$ 339,594$ 214,505$ 171.5%242,194$ 248.7%Feb115,287128,700286,943171,656148.9%158,243123.0%Mar1,394,226601,900293,361(1,100,865)(79.0)%(308,539)(51.3)%Apr423,394244,000574,925151,53135.8%330,925135.6%May345,489234,300255,078(90,410)(26.2)%20,7788.9%Jun436,101267,400329,081(107,020)(24.5)%61,68123.1%Jul348,745260,200360,85712,1123.5%100,65738.7%Aug269,454212,100673,012403,557149.8%460,912217.3%Sep228,140163,500338,340110,20048.3%174,840106.9%Oct296,100183,000249,714(46,386)(15.7)%66,71436.5%Nov233,389195,900321,89588,50737.9%125,99564.3%Dec347,582211,600262,543(85,038)(24.5)%50,94324.1%YE Total4,562,995$ 2,800,000$ 4,285,344$ (277,651)$ (6.1)%1,485,344$ 53.0%Real Estate Excise Tax RevenuesDecember 2016Percentage2016 vs. 20152016 vs. BudgetPercentage 21 Quarterly Financial Report Through Q4-2016 $0.0$0.5$1.0$1.5$2.0$2.5$3.0$3.5$4.0$4.5$5.0JanFebMarAprMayJunJulAugSepOctNovDecMillionsReal Estate Excise Tax2016 YE Budget2016 YE Actual2015 YE Actual 22 Quarterly Financial Report Through Q4-2016 Pet Licensing In 2016, 4,706 pet licenses were sold, resulting in $128,680 in revenue. In 2015, 5,112 licenses were sold, resulting in $147,152 in revenue. The 2016 budget goal for pet licensing revenue is $240,000. 23 Quarterly Financial Report Through Q4-2016 Street Funds This section provides financial overview of the City’s three street funds for the year ending December 31, 2016. The City’s three street funds include the Arterial Street Fund (Fund 102), the Local Street Fund (Fund 103), and the Arterial Street Preservation Fund (Fund 105). The capital project expenditures in these funds are budgeted primarily based on the collection/disbursement average for the same period of the prior two years. Fund 102 – Arterial Street Fund The Arterial Street Fund is a Special Revenue Fund that is funded by transportation grants, traffic impact fees, a portion of the City’s gas tax receipts, Public Works Trust Fund loans, developer contributions, and other sources. There were over 30 separate street projects budgeted in this fund in 2016. Some of these projects included the South 272nd /South 277th Street Corridor Improvement Project, the West Main Street Multimodal Corridor and ITS Improvement Project, and the AWS Corridor Safety Improvement Project (Muckleshoot Plaza to Dogwood). Through December 31, 2016, revenues collected totaled $4.2 million and compare to collections of $4.7 million in 2015. Expenditures through year-end totaled $6.3 million and compare to $6.9 million spent the same period last year. Expenditures for the South 272nd/South 277th Street Corridor Improvements project and the West Main Street Multimodal Corridor and ITS Improvements project, which constitute approximately 70% of budgeted capital expenditures, were below budget due to construction sequencing for these multi-year projects and timing lag between work performance and the City’s reimbursement of costs incurred. Fund 102 -Arterial Street2015Summary of Sources and UsesAnnualReport Period: December 2016BudgetYE BudgetYE ActualYE ActualAmountRevenuesFederal Grants7,270,016$ 7,270,016$ 580,492$ 1,080,056$ (6,689,524)$ (92.0)%State Grants4,292,973 4,292,973 1,193,710 1,214,948 (3,099,263) (72.2)%Motor Vehicle Fuel and Multimodal Taxes530,000 530,000 580,220 493,808 50,220 9.5%Developer Contributions1,601,145 1,601,145 510,383 628,027 (1,090,762) (68.1)%Miscellaneous Revenue373,805 373,805 64,862 420,839 (308,943) (82.6)%Other Governmental Agencies---61,520 -Public Works Trust Fund Loans-----Operating Transfer In3,882,586 3,882,586 1,295,215 795,280 (2,587,371) (66.6)%Investment Income2,000 2,000 6,484 2,670 4,484 224.2%Total Revenues17,952,525$ 17,952,525$ 4,231,365$ 4,697,147$ (13,721,160)$ (76.4)%ExpendituresSalary and Benefits839,323$ 839,323$ 490,836$ 442,151$ 348,486$ 41.5%Capital Outlay17,428,903 17,428,903 5,302,678 5,920,803 12,126,225 69.6%Subtotal -Capital Project Expenditures18,268,226 18,268,226 5,793,514 6,362,954 12,474,711 68.3%Services and Charges245,000 245,000 224,507 273,820 20,493 8.4%Interfund Payments for Services74,550 74,550 74,556 71,148 (6) (0.0)%Debt Service Principal and Interest217,862 217,862 210,205 218,761 7,657 3.5%Operating Transfer Out---378 -Total Expenditures18,805,638$ 18,805,638$ 6,302,783$ 6,927,061$ 12,502,855$ 66.5%Net Change in Fund Balance(853,113)$ (853,113)$ (2,071,418)$ (2,229,914)$ (1,218,305)$ 142.8%Beg. Fund Balance, January 20162,405,821$ Net Change in Fund Balance, December 2016(2,071,418)Ending Fund Balance, December 2016334,404$ 2016 Budgeted Ending Fund Balance1,552,709$ 20162016 YE Budget vs. ActualFavorable (Unfavorable)Percentage 24 Quarterly Financial Report Through Q4-2016 This table presents the status of the projects with the most significant impact on this fund: Notes: • S 277th St. Corridor Improvements: Majority scheduled for completion in 2017. • W. Main St. Multimodal: Majority of the project was constructed in 2016 but will continue into 2017. • AWS Corridor Safety Improvements: ROW acquisition took longer than scheduled and construction will begin in 2017. Anticipated carry forwards in this fund in BA#1 total $11.8 million, which accounts for the bulk of the variance between budget and actual. This will largely be offset by grant revenues, traffic impact fees, contributions, and other revenues of $11.0 million that had originally been budgeted in 2016. NameAnnual BudgetYE ActualVarianceS. 277th St Corridor Improvements$6.0M$1.7M$4.3MW. Main St Multimodal Corridor & ITS Imp$4.4M$2.5M$1.9MAWS Corridor Safety Imp. --Muckleshoot Pl.$2.6M$0.3M$2.3MAll Other Projects (28 Others Budgeted)$5.3M$1.4M$3.9MTotal$18.3M$5.8M$12.5MFund 102 -Arterial StreetCapital Projects Status 25 Quarterly Financial Report Through Q4-2016 Fund 103 – Local Street Fund The Local Street Fund is a Special Revenue Fund where the revenue from sales taxes on construction are used for local street repairs. In 2016 the revenues in this fund exceeded budget expectations by $692,000, or 39.2%, due to higher than anticipated sales tax revenues from local construction projects. Expenditures in 2016 totaled $2.1 million and compare to an annual budget of $2.9 million. The majority of expenditures from the fund’s largest project, 2016 Local Street Pavement Reconstruction Project, occurred in Q4 2016 with a limited amount of costs anticipated in 2017. The additional revenues will be programmed into future year budgets. Fund 103 -Local Street Fund2015Summary of Sources and UsesAnnualReport Period: December 2016BudgetYE BudgetYE ActualYE ActualAmountRevenuesSales Tax on Construction1,610,000$ 1,609,800$ 2,292,280$ 2,296,863$ 682,480$ 42.4%Operating Transfer In150,000 150,000 150,000 150,000 -0.0%Interest Earnings2,500 2,500 11,532 3,644 9,032 361.3%Total Revenues1,762,500$ 1,762,300$ 2,453,812$ 2,450,507$ 691,512$ 39.2%ExpendituresSalary and Benefits175,090$ 175,090$ 122,298$ 114,279$ 52,791$ 30.2%Services and Charges300 300$ 708 583 (408) (136.2)%Capital Outlay2,676,768 2,676,768 1,974,528 2,285,074 702,240 26.2%Interfund Payments for Services12,240 12,240 12,240 12,480 -0.0%Operating Transfer Out---378 -Total Expenditures2,864,398$ 2,864,398$ 2,109,775$ 2,412,794$ 754,623$ 26.3%Net Change in Fund Balance(1,101,898)$ (1,102,098)$ 344,037$ 37,713$ 1,446,135$ (131.2)%Beg. Fund Balance, January 20162,080,690$ Net Change in Fund Balance, December 2016344,037 Ending Fund Balance, December 20162,424,727$ 20162016 YE Budget vs. ActualFavorable (Unfavorable)Percentage 26 Quarterly Financial Report Through Q4-2016 This table presents the status of the projects with the most significant impact on this fund: Notes: • 2016 Local Street Pavement Reconstruction: Substantially completed November 2016, final acceptance anticipated March 2017. • 2017 Local Street Reconst. & Preservation: 2016 funding is for design; project to be carried forward to 2017. Anticipated carry forwards in this fund in BA#1 total $703,000, which accounts for the variance between budget and actual.NameAnnual BudgetYE ActualVariance2016 Local Street Pavement Reconst.$2.4M$2.0M$0.4M2017 Local St. Reconst. & Preservation$0.3M$0.0M$0.3MAll Other Projects (2 Others Budgeted)$0.0M$0.0M$0.0MTotal$2.7M$2.0M$0.7MFund 103 -Local StreetCapital Projects Status 27 Quarterly Financial Report Through Q4-2016 Fund 105 – Arterial Street Preservation Fund The Arterial Street Preservation Fund is a Special Revenue Fund which is primarily funded by a 1.0% utility tax that was adopted by Council in 2008; these utility tax revenues are restricted for arterial street repair and preservation projects. Some projects budgeted within the Arterial Street Preservation Fund in 2016 include the Auburn Way North Preservation Project and the B Street NW Reconstruction Project. In 2016 revenues totaled $2.2 million and compare to a budget of $3.1 million. This difference is mostly due to the Auburn Way North Preservation project, for which $880,000 in federal grant funding was budgeted, being moved forward to 2017. Expenditures in 2016 totaled $1.1 million, which is approximately 21.1% of annual budgeted expenditures. This is primarily due to the the fund’s main project – Auburn Way North Preservation – being repackaged and sent to bid a second time after the first round of bidding produced higher-than-expected costs. This project is anticipated to be rebid in February 2017, which significantly affects the fund’s 2016 year-end results. Additionally, construction on the B Street NW Reconstruction Project was moved to 2017 due to additional utility work being added to the project. This project remains in the design phase; construction is anticipated to start in May 2017. Fund 105 -Arterial St. Presv. 2015Summary of Sources and UsesAnnualReport Period: December 2016BudgetYE BudgetYE ActualYE ActualAmountRevenuesCity Utility Tax 589,000$ 589,000$ 659,855$ 607,036$ 70,855$ 12.0 %Electric Utility Tax660,500 660,500 705,071 646,501 44,571 6.7 %Natural Gas Utility Tax170,400 170,400 189,392 200,467 18,992 11.1 %Cable TV Tax181,300 181,300 197,497 186,934 16,197 8.9 %Telephone Utility Tax324,000 324,000 298,871 332,301 (25,129) (7.8)%Garbage Utility Tax (External Haulers)17,700 17,700 20,668 19,145 2,968 16.8 %Grants1,053,626 1,053,626 37,979 59,064 (1,015,647) (96.4)%Developer Mitigation Fees-----Operating Transfer In150,000 150,000 18,250 612,340 (131,750) (87.8)%Interest Earnings1,500 1,500 9,858 3,499 8,358 557.2 %Total Revenues3,148,026$ 3,148,026$ 2,137,442$ 2,667,287$ (1,010,584)$ (32.1)%ExpendituresSalary and Benefits124,095$ 124,095$ 286,880$ 218,442$ (162,785)$ (131.2)%Capital Outlay4,258,226 4,258,226 508,281 3,796,694 3,749,946 88.1 %Subtotal -Capital Project Expenditures4,382,321 4,382,321 795,161 4,015,136 3,587,161 81.9 %Supplies-----Services and Charges212,500 212,500$ 62,500 -150,000 70.6 %Operating Transfer Out401,750 401,750$ 195,636 32,786 206,114 51.3 %Total Expenditures4,996,571$ 4,996,571$ 1,053,297$ 4,047,922$ 3,943,274$ 78.9 %Net Change in Fund Balance(1,848,545)$ (1,848,545)$ 1,084,145$ (1,380,634)$ 2,932,690$ (158.6)%Beg. Fund Balance, January 20161,943,865$ Net Change in Fund Balance, December 20161,084,145Ending Fund Balance, December 20163,028,010$ 2016 Budgeted Ending Fund Balance95,319$ 20162016 YE Budget vs. ActualFavorable (Unfavorable)Percentage 28 Quarterly Financial Report Through Q4-2016 This table presents the status of the projects with the most significant impact on the fund: Notes: • Auburn Way N Preservation: This project to be re-bid in February 2017 after unsatisfactory 2016 bids. • B Street NW Reconstruction: Project still in design due to prioritizing grant-funded projects that were expiring and additional utility work added to the project. Anticipated carry forwards in this fund in BA#1 total $2.7 million, which accounts for the bulk of the variance between budget and actual. This will partially be offset by grant revenues, traffic impact fees, and other revenues of $1.1 million that had originally been budgeted in 2016. NameAnnual BudgetYE ActualVarianceAuburn Way North Preservation$1.8M$0.1M$1.7MB Street NW Reconstruction$1.5M$0.1M$1.4MAll Other Projects (7 Others Budgeted)$1.1M$0.6M$0.5MTotal$4.4M$0.8M$3.6MCapital Projects StatusFund 105 -Arterial Street Preservation 29 Quarterly Financial Report Through Q4-2016 Fund 124 – Mitigation Fees The Mitigation Fees Fund is a Special Revenue Fund funded from revenue from new The Mitigation Fees Fund is a Special Revenue Fund funded from revenue from new development, which is assessed at the time applications are received for development activity. These funds are used to mitigate costs associated with City growth. Through year-end 2016, revenues were significantly above budget expectations, at 450.9% of the annual budgeted amount. This is due to higher-than-expected transportation, parks and fire impact fee revenues in the month of July, driven by the construction of The Promenade, a 298-unit apartment complex in Lea Hill. Another revenue spike occurred in Q4-2016 due to the construction of a 600-unit mixed-use senior and multifamily housing development, The Villas and The Reserve. Expenditures were well below budget due to delays in construction projects funded by these revenues. Fund 124 -Mitigation FeesSummary of Sources and UsesReport Period Through:EndingEndingDecember 2016Fund BalanceFund BalanceTransportation Impact Fees3,084,106$ 1,010,789$ 5,755,401$ 800,000$ 3,006,075$ 1,476,010$ Transportation Migitation Fees9,959 4,198 263,472 -173,144 84,566 Fire Impact Fees383,460 400,000 297,680 350,000 400,000 264,220 Fire Mitigation Fees--82 --82 Parks Impact Fees3,753,098 84,511 4,791,800 75,000 300,000 898,213 Parks Mitigation Fees--330,319 --330,319 School Impact Admin Fees26,546 60,182 44,479 15,000 61,626 31,489 Wetland Mitigation Fees--68,626 --68,626 Interest and Investment Income36,500 -36,500 4,890 -4,890 Fees in Lieu of Improvements122,525 -122,525 ---Operating Transfers---400,000 -400,000 Totals7,416,194$ 1,559,680$ 11,710,884$ 1,644,890$ 3,940,845$ 3,558,415$ Beginning Fund Balance, January 20165,854,370$ Net Change in Fund Balance, December 20165,856,514 Ending Fund Balance, December 201611,710,884$ 2016 Budgeted Ending Fund Balance3,558,415$ YE ActualsBUDGETRevenuesExpendituresRevenuesExpenditures 30 Quarterly Financial Report Through Q4-2016 Proprietary Funds Detailed income and expense statements for Enterprise and Internal Service funds can be found in the Appendices at the end of this report. The format changed in Q1-2016 and, in lieu of a working capital statement, there are now operating and, as applicable, capital fund reports for these funds showing budget, actuals, and variances. Operating funds house all the operating costs along with debt service and financing obligations. Capital funds show costs associated with capital acquisition and construction. Both the operating and capital funds have a working capital balance. This approach isolates those funds available for capital and cash flow needs for daily operations, and project managers will know exactly how much working capital is available for current and planned projects. Budget Amendment #6, adopted in July 2016, moved working capital from the operating funds to the capital funds along with all the other beginning fund balance adjustments. System development revenues previously credited to the operating funds are now directed to the corresponding capital funds. In 2016, the Water Utility had operating income before depreciation of $3.4 million as compared with $3.3 million for 2015. Water sales in 2016 totaled 3.58 million hundred cubic feet (ccf), compared to 3.50 million ccf in 2015, representing a 2.3% increase. Revenues ended the year 8.4% above budget due to higher than expected water sales. The Sewer Utility ended the year with an operating loss of $1.4 million. However, this was due to a $3.0 million budgeted interfund transfer from the operations fund to the capital subfund in November. Less this transfer, the operations fund ended with an operating income of $1.6 million. This compares with an operating income of $1.4 million in 2015. 0100,000200,000300,000400,000500,000600,000700,000800,000900,0001,000,000$0$200$400$600$800$1,000$1,200$1,400$1,600$1,800$2,000JanFebMarAprMayJunJulAugSepOctNovDecCCFThousandsWater Sale Revenues vs Water Sold2016 vs 20152015 Water Sales ($)2016 Water Sales ($)2015 Water Sold (ccf)2016 Water Sold (ccf) 31 Quarterly Financial Report Through Q4-2016 The Sewer-Metro Utility ended the year with an operating income of $297,000, as compared with $188,000 in 2015, an increase of 57.7%. The Stormwater Utility ended 2016 with $97,000 in operating income, which is about $3.2 million below 2015. This is largely due to the receipt of over $1.0 million in grant revenues from the Department of Ecology in Q2 and Q3-2015, inflating 2015 revenues, and a one-time transfer of $2.0 million from the operations to the capital subfund in 2016, inflating 2016 expenditures. The Cemetery Fund ended 2016 with an operating income of $188,000 as compared with an operating income of $101,000 in 2015. Operating expenditures totaled $1.1 million in 2016, compared to $1.0 million last year. The increase is mainly a result of higher cost of supplies due to increased inventory costs associated with higher demand. Internal Service Funds Operating expenditures within the Insurance Fund represent the premium cost pool that will be allocated monthly to other City funds over the course of 2016. As a result, this balance will gradually diminish each month throughout the year. No significant variances are reported in the Worker’s Compensation, Facilities, Innovation & Technology, or Equipment Rental Funds. Contact Information This report is prepared by the Finance Department. Additional financial information can also be viewed at our website: http://www.auburnwa.gov/. For any questions about this report please contact Shelley Coleman at scoleman@auburnwa.gov. 32 InvestmentPurchasePurchaseMaturityYield toTypeDatePriceDateMaturityState Investment PoolVarious120,563,008$ Various0.51%KeyBank Money MarketVarious6,286,928Various0.02%FNMA3/11/2016998,8442/22/20191.20%LAKUTL9/25/2013235,91911/1/20171.90% Total Cash & Investments128,084,699$ 0.491%Investment Mix% of TotalState Investment Pool94.1%Current 6-month treasury rate0.64%KeyBank Money Market4.9%Current State Pool rate0.51%US Treasury0.0%KeyBank Money Market0.02%FNMA0.8%LAKUTL0.2%100.0%City of AuburnInvestment Portfolio SummaryDecember 31, 2016Summary 33 SALES TAX SUMMARYDECEMBER 2016 SALES TAX DISTRIBUTIONS (FOR OCTOBER 2016 RETAIL ACTIVITY)2015 Annual Total2015 YTD2016 YTDYTD2015 Annual Total2015 YTD2016 YTDYTDNAICSCONSTRUCTION (Nov '14-Oct '15)(Nov '14-Oct '15)(Nov '15-Oct '16)% DiffNAICSAUTOMOTIVE(Nov '14-Oct '15)(Nov '14-Oct '15)(Nov '15-Oct '16)% Diff236Construction of Buildings1,229,1661,229,1661,139,466-7.3%441Motor Vehicle and Parts Dealer3,465,1993,465,1993,409,019-1.6%237Heavy and Civil Construction252,280252,280309,34422.6%447Gasoline Stations241,336241,336250,4783.8%238Specialty Trade Contractors815,416815,416843,4703.4%TOTAL AUTOMOTIVE3,706,5353,706,5353,659,497-1.3%TOTAL CONSTRUCTION 2,296,8632,296,8632,292,280-0.2%Overall Change from Previous Year-47,038Overall Change from Previous Year-4,5832015 Annual Total2015 YTD2016 YTDYTD2015 Annual Total2015 YTD2016 YTDYTDNAICSRETAIL TRADE(Nov '14-Oct '15)(Nov '14-Oct '15)(Nov '15-Oct '16)% DiffNAICSMANUFACTURING(Nov '14-Oct '15)(Nov '14-Oct '15)(Nov '15-Oct '16)% Diff442Furniture and Home Furnishings253,871253,871185,234f-27.0%311Food Manufacturing3,9733,9733,278-17.5%443Electronics and Appliances295,127295,127220,553-25.3%312Beverage and Tobacco Products9,3239,3239,6013.0%444Building Material and Garden589,676589,676579,076-1.8%313Textile Mills37237241511.7%445Food and Beverage Stores368,411368,411397,177d7.8%314Textile Product Mills3,0393,0393,55417.0%446Health and Personal Care Store220,603220,603284,19128.8%315Apparel Manufacturing11611615533.3%448Clothing and Accessories1,079,9331,079,9331,136,4315.2%316Leather and Allied Products8838380.9%451Sporting Goods, Hobby, Books220,168220,168237,5557.9%321Wood Product Manufacturing65,03965,03958,391-10.2%452General Merchandise Stores988,004988,004c1,017,9053.0%322Paper Manufacturing7,7627,7628,0473.7%453Miscellaneous Store Retailers578,836578,836473,398-18.2%323Printing and Related Support59,75059,75052,610-11.9%454Nonstore Retailers394,268394,268321,071-18.6%324Petroleum and Coal Products5,3945,3942,145-60.2%TOTAL RETAIL TRADE4,988,8984,988,8984,852,592-2.7%325Chemical Manufacturing5,5085,50810,18384.9%Overall Change from Previous Year-136,306326Plastics and Rubber Products9,0819,0818,168-10.1%327Nonmetallic Mineral Products14,51414,51417,42920.1%331Primary Metal Manufacturing1,6921,692442-73.9%2015 Annual Total2015 YTD2016 YTDYTD332Fabricated Metal Product Manuf37,81937,81929,409-22.2%NAICSSERVICES(Nov '14-Oct '15)(Nov '14-Oct '15)(Nov '15-Oct '16)% Diff333Machinery Manufacturing21,69321,69316,461-24.1%51*Information526,003526,003b630,15819.8%334Computer and Electronic Product8,3888,38810,78028.5%52*Finance and Insurance95,47195,471110,72816.0%335Electric Equipment, Appliances827827445-46.2%53*Real Estate, Rental, Leasing334,095334,095358,6287.3%336Transportation Equipment Man536,513536,513471,441-12.1%541Professional, Scientific, Tech195,478195,478237,65621.6%337Furniture and Related Products20,38920,38918,661-8.5%551Company Management9,2309,230330-96.4%339Miscellaneous Manufacturing50,35850,35839,437-21.7%56*Admin. Supp., Remed Svcs373,781373,781328,453-12.1%TOTAL MANUFACTURING861,555861,555761,091-11.7%611Educational Services60,18960,189a50,026-16.9%Overall Change from Previous Year-100,46562*Health Care Social Assistance81,68481,68491,64312.2%71*Arts and Entertainment207,717207,717156,301-24.8%72*Accommodation and Food Svcs1,159,0331,159,0331,217,7345.1%2015 Annual Total2015 YTD2016 YTDYTD81*Other Services475,505475,505646,57936.0%NAICSTRANSPORTATION AND WAREHOUSING(Nov '14-Oct '15)(Nov '14-Oct '15)(Nov '15-Oct '16)% Diff92*Public Administration127,364127,364141,80611.3%481Air Transportation001N/ATOTAL SERVICES3,645,5513,645,5513,970,0428.9%482Rail Transportation10,45710,45724,331132.7%Overall Change from Previous Year324,491484Truck Transportation7,5907,5907,067-6.9%485Transit and Ground Passengers209209114-45.5%488Transportation Support36,66936,66952,82844.1%2015 Annual Total2015 YTD2016 YTDYTD491Postal Service2592592745.8%NAICSMISCELLANEOUS(Nov '14-Oct '15)(Nov '14-Oct '15)(Nov '15-Oct '16)% Diff492Couriers and Messengers1130125370.3%000Unknown000N/A493Warehousing and Storage10,48710,48714,52338.5%111-115Agriculture, Forestry, Fishing4,5104,5105,53422.7%TOTAL TRANSPORTATION65,67165,67199,43951.4%211-221Mining & Utilities27,45627,45629,4107.1%Overall Change from Previous Year33,768999Unclassifiable Establishments39,58139,58132,161e-18.7%TOTAL SERVICES71,54871,54867,105-6.2%Overall Change from Previous Year-4,4432015 Annual Total2015 YTD2016 YTDYTDNAICSWHOLESALE TRADE(Nov '14-Oct '15)(Nov '14-Oct '15)(Nov '15-Oct '16)% Diff423Wholesale Trade, Durable Goods1,010,7301,010,730981,820-2.9%GRAND TOTAL16,865,54016,865,54016,967,023424Wholesale Trade, Nondurable216,303216,303281,16630.0%Overall Change from Previous Year101,4820.6%425Wholesale Electronic Markets1,8851,8851,9915.6%TOTAL WHOLESALE1,228,9191,228,9191,264,9762.9%Total December 2016 Sales Tax Distributions1,352,227 Overall Change from Previous Year36,058Dollar Increase from December 2015(25,171) Percent Increase from December 2015Includes Adjustments in excess of +/-$10,000.Comparisons:a. WA State Dept of Revenue audit adjustment to sales tax returns for period of February 2015 (adjustment: $11,845).December 201516,865,540 15,488,142 1,377,398 b. WA State Dept of Revenue audit adjustment to sales tax returns for period of March 2015 (adjustment: -$17,839).December 201415,622,791 14,279,403 1,343,388 c. WA State Dept of Revenue audit adjustment to sales tax returns for period of April 2015 (adjustment: -$43,875).d. WA State Dept of Revenue audit adjustment to sales tax returns for period of November 2015 (adjustment: $10,572).e. WA State Dept of Revenue audit adjustment to sales tax returns for period of April 2016 (adjustment: -$52,898).f. WA State Dept of Revenue audit adjustment to sales tax returns for period of May 2016 (adjustment: -$16,496).12/28/16Prepared by Auburn Finance Department-1.8% 34 3/21/2017 8:58 AM Budget YEActual VarianceBudget YEActual VarianceBudget YEActual VarianceBudget YEActual Variance430 430 431 431 433 433 432 432 OPERATING FUND:460460461461462462OPERATING REVENUESCharges For Service13,698,782 14,592,941 894,159 7,847,883 8,387,647 539,764 16,332,687 16,809,281 476,594 9,151,487 9,523,384 371,897 Grants---50,000 -(50,000) Interest Earnings7,735 29,067 21,332 10,697 27,028 16,331 700 4,563 3,863 13,865 25,176 11,311 Operating Transfers---Rents, Leases, Concessions, & Other206,854 462,328 255,474 70,128 72,981 2,853 ---58,674 90,747 32,073 TOTAL OPERATING REVENUES13,913,371 15,084,337 1,170,966 7,928,708 8,487,656 558,948 16,333,387 16,813,844 480,457 9,274,026 9,639,307 365,281 OPERATING EXPENSESSalaries & Wages2,587,276 2,502,435 84,841 1,758,478 1,672,938 85,540 ---2,397,119 2,542,675 (145,556) Benefits1,251,312 1,152,772 98,540 871,146 771,125 100,021 ---1,224,350 1,161,566 62,784 Supplies321,994 290,198 31,796 130,500 89,728 40,772 ---94,300 73,145 21,155 Other Service Charges5,185,175 4,086,986 1,098,189 2,723,275 2,565,614 157,661 ---1,670,215 1,327,125 343,090 Intergovernmental Services (Less Transfers Out)---9,500 3,728 5,772 113,000 99,846 13,154 Transfer Out to Operating Sub-Fund---3,000,000 3,000,000 -2,000,000 2,000,000 -Transfer Out to Other Funds133,960 88,921 45,039 162,508 107,430 55,078 302,980 227,822 75,157 Waste Management Payments Sewer Metro Services16,517,200 16,516,635 565 Debt Service Principal1,702,563 1,459,888 242,675 541,127 442,927 98,200 413,162 423,302 (10,140) Debt Service Interest1,006,253 867,085 139,168 277,082 284,111 (7,029) ---360,525 372,634 (12,109) Interfund Loan Repayment---Interfund Operating Rentals & Supplies1,276,967 1,277,876 (909) 952,338 952,635 (297) ---1,312,518 1,314,212 (1,694) TOTAL OPERATING EXPENSES13,465,499 11,726,161 1,739,338 10,425,954 9,890,236 535,719 16,517,200 16,516,635 565 9,888,169 9,542,328 345,841 OPERATING REVENUES LESS EXPENSES BEFORE DEPRECIATION (*) 447,873 3,358,176 2,910,304 (2,497,246) (1,402,579) 1,094,667 (183,813) 297,210 481,023 (614,143) 96,979 711,122 BEGINNING WORKING CAPITAL -January 1, 20164,191,201 4,191,201 -4,262,859 4,262,859 -2,358,518 2,358,518 -2,691,382 2,691,382 -ENDING WORKING CAPITAL -December 31, 20164,639,074 7,549,377 2,910,304 1,765,613 2,860,280 1,094,667 2,174,705 2,655,728 481,023 2,077,239 2,788,361 711,122 NET CHANGE IN WORKING CAPITAL (see Note)447,872 3,358,176 2,910,304 (2,497,246) (1,402,579) 1,094,667 (183,813) 297,210 481,023 (614,143) 96,979 711,122 9,261,201 (3,145,071) -12,862,859 (9,580,742) -2,358,518 297,210 -14,591,382 (11,211,937) -CAPITAL FUND:CAPITAL REVENUESInterest Revenue1,265 15,481 14,216 2,303 34,694 32,391 2,135 39,675 37,540 Grants300,000 -(300,000) Contributions------7,806 -(7,806) Other Non-Operating Revenue---------Gain (Loss) On Sale Of Fixed Assets---------Increase In Contributions -System Development 350,000 1,789,747 1,439,747 240,000 2,110,375 1,870,375 350,000 849,033 499,033 Increase In Contributions -Other---------Increase In Contributions -FAA---------Proceeds of Debt Activity4,070,037 820,037 (3,250,000) ------Transfers In from Operating Sub-Fund---3,000,000 3,000,000 -2,000,000 2,000,000 -Transfer In from Other Funds--------Other Sources----22,500 22,500 -142,511 142,511 TOTAL CAPITAL REVENUES4,421,302 2,625,265 (1,796,037) 3,242,303 5,167,569 1,925,266 2,659,941 3,031,219 371,278 CAPITAL EXPENSESOther Non-Operating Expense---------Increase In Fixed Assets -Salaries245,725 216,920 28,805 230,786 90,842 139,944 294,980 127,106 167,874 Increase In Fixed Assets -Benefits81,637 89,155 (7,518) 76,412 39,678 36,734 97,969 55,165 42,804 Increase In Fixed Assets -Services-18,288 (18,288) -31,007 (31,007) ---Increase In Fixed Assets -Site Improvements-38,035 (38,035) -----Increase In Fixed Assets -Equipment---Increase In Fixed Assets -Construction9,160,179 4,812,494 4,347,685 3,831,262 871,673 2,959,588 4,390,563 1,482,503 2,908,060 Increase In Fixed Assets -Other---10,918 (10,918) Operating Transfers Out---------TOTAL CAPITAL EXPENSES9,487,541 5,174,892 4,312,648 4,138,460 1,033,201 3,105,259 4,783,512 1,675,693 3,107,819 BEGINNING WORKING CAPITAL -January 1, 20165,070,000 5,070,000 -8,600,000 8,600,000 -11,900,000 11,900,000 -3,761 2,520,373 2,516,612 7,703,843 12,734,368 5,030,525 9,776,429 13,255,526 3,479,097 NET CHANGE IN WORKING CAPITAL (see Note)(5,066,239) (2,549,627) 2,516,612 (896,157) 4,134,368 5,030,525 (2,123,571) 1,355,526 3,479,097 Total Change in Working Capital(4,618,366) 808,549 5,426,915 (3,393,403) 2,731,789 6,125,192 (183,813) 297,210 481,023 (2,737,714) 1,452,505 4,190,220 ENDING WORKING CAPITAL -December 31, 2016 Note: Working Capital = Current Assets minus Current Liabilities ENTERPRISE FUNDSOPERATING & CAPITAL FUNDSWATERSEWERSEWER METROSTORMCash Basis through December 2016 35 3/21/2017 8:58 AM OPERATING FUND:OPERATING REVENUESCharges For ServiceGrantsInterest EarningsOperating TransfersRents, Leases, Concessions, & OtherTOTAL OPERATING REVENUESOPERATING EXPENSESSalaries & WagesBenefitsSuppliesOther Service ChargesIntergovernmental Services (Less Transfers Out)Transfer Out to Operating Sub-FundTransfer Out to Other FundsWaste Management Payments Sewer Metro ServicesDebt Service PrincipalDebt Service InterestInterfund Loan RepaymentInterfund Operating Rentals & SuppliesTOTAL OPERATING EXPENSES OPERATING REVENUES LESS EXPENSES BEFORE DEPRECIATION (*) BEGINNING WORKING CAPITAL -January 1, 2016ENDING WORKING CAPITAL -December 31, 2016NET CHANGE IN WORKING CAPITAL (see Note)CAPITAL FUND:CAPITAL REVENUESInterest RevenueGrantsContributionsOther Non-Operating RevenueGain (Loss) On Sale Of Fixed AssetsIncrease In Contributions -System Development Increase In Contributions -OtherIncrease In Contributions -FAAProceeds of Debt ActivityTransfers In from Operating Sub-FundTransfer In from Other FundsOther SourcesTOTAL CAPITAL REVENUESCAPITAL EXPENSESOther Non-Operating ExpenseIncrease In Fixed Assets -SalariesIncrease In Fixed Assets -BenefitsIncrease In Fixed Assets -ServicesIncrease In Fixed Assets -Site ImprovementsIncrease In Fixed Assets -EquipmentIncrease In Fixed Assets -ConstructionIncrease In Fixed Assets -OtherOperating Transfers OutTOTAL CAPITAL EXPENSESBEGINNING WORKING CAPITAL -January 1, 2016NET CHANGE IN WORKING CAPITAL (see Note)Total Change in Working CapitalENDING WORKING CAPITAL -December 31, 2016 Note: Working Capital = Current Assets minus Current Liabilities OPERATING & CAPITAL FUNDSCash Basis through December 2016Budget YEActual VarianceBudget YEActual VarianceBudget YEActual VarianceBudget YEActual Variance434 434 435 435 436 436 501 501 464464465465466466-13,467,100 14,211,584 744,484 747,400 829,081 81,681 878,000 1,307,631 429,631 ---138,990 70,491 (68,499) -----1,300 15,404 14,104 969 1,707 738 300 1,175 875 1,000 4,187 3,187 300,000 -(300,000) -400 400 500 2,992 2,492 -20 20 -13,607,390 14,297,879 690,489 748,869 833,780 84,911 1,178,300 1,308,826 130,526 1,000 4,187 3,187 406,645 410,807 (4,162) 25,723 27,232 (1,509) 453,837 462,561 (8,723) ---206,181 186,374 19,807 10,496 9,157 1,339 258,783 240,612 18,171 215,000 135,320 79,680 37,190 25,621 11,569 2,000 1,523 477 191,300 240,191 (48,891) ---1,505,075 1,480,134 24,941 463,050 469,068 (6,018) 151,700 126,296 25,404 3,900 13,771 (9,871) 420,600 362,966 57,634 ------------150,000 150,000 -------------------10,855,000 10,838,850 16,150 150,000 166,439 (16,439) ---35,693 7,910 27,783 ------39,947 49,713 (9,767) --104,209 104,196 13 ---50,740 50,736 4 ---13,534,900 13,408,947 125,953 876,908 881,042 (4,134) 1,106,360 1,120,396 (14,036) 218,900 149,091 69,809 72,490 888,931 816,441 (128,039) (47,262) 80,777 71,940 188,430 116,490 (217,900) (144,903) 72,997 3,477,387 3,477,387 -316,604 316,604 -105,646 105,646 -1,530,589 1,530,589 -3,549,877 4,366,318 816,441 188,565 269,342 80,777 177,586 294,076 116,490 1,312,689 1,385,685 72,997 72,490 888,931 816,441 (128,039) (47,262) 80,777 71,940 188,430 116,490 (217,900) (144,903) 72,997 3,477,387 888,931 --375,646 (81,570) -1,530,589 (144,903) -31 1,954 1,923 -1,174 1,174 14,456 8,092 (6,364) ---------------------------263,834 169,491 (94,343) ---------150,000 150,000 ----------428,321 329,537 (98,784) -1,174 1,174 -------------------------12,699 14,541 (1,842) --469,911 191,823 278,088 -----------469,911 191,823 278,088 12,699 14,541 (1,842) 200,000 200,000 -270,000 270,000 -158,410 337,714 179,304 257,301 256,633 (668) (41,590) 137,714 179,304 (12,699) (13,367) (668) 72,490 888,931 (169,629) 90,452 260,081 59,241 175,063 115,822 (217,900) (144,903) 72,997 ENTERPRISE FUNDSSOLID WASTEAIRPORTCEMETERYINTERNAL SERVICE FUNDSINSURANCE 36 3/21/2017 8:58 AM OPERATING FUND:OPERATING REVENUESCharges For ServiceGrantsInterest EarningsOperating TransfersRents, Leases, Concessions, & OtherTOTAL OPERATING REVENUESOPERATING EXPENSESSalaries & WagesBenefitsSuppliesOther Service ChargesIntergovernmental Services (Less Transfers Out)Transfer Out to Operating Sub-FundTransfer Out to Other FundsWaste Management Payments Sewer Metro ServicesDebt Service PrincipalDebt Service InterestInterfund Loan RepaymentInterfund Operating Rentals & SuppliesTOTAL OPERATING EXPENSES OPERATING REVENUES LESS EXPENSES BEFORE DEPRECIATION (*) BEGINNING WORKING CAPITAL -January 1, 2016ENDING WORKING CAPITAL -December 31, 2016NET CHANGE IN WORKING CAPITAL (see Note)CAPITAL FUND:CAPITAL REVENUESInterest RevenueGrantsContributionsOther Non-Operating RevenueGain (Loss) On Sale Of Fixed AssetsIncrease In Contributions -System Development Increase In Contributions -OtherIncrease In Contributions -FAAProceeds of Debt ActivityTransfers In from Operating Sub-FundTransfer In from Other FundsOther SourcesTOTAL CAPITAL REVENUESCAPITAL EXPENSESOther Non-Operating ExpenseIncrease In Fixed Assets -SalariesIncrease In Fixed Assets -BenefitsIncrease In Fixed Assets -ServicesIncrease In Fixed Assets -Site ImprovementsIncrease In Fixed Assets -EquipmentIncrease In Fixed Assets -ConstructionIncrease In Fixed Assets -OtherOperating Transfers OutTOTAL CAPITAL EXPENSESBEGINNING WORKING CAPITAL -January 1, 2016NET CHANGE IN WORKING CAPITAL (see Note)Total Change in Working CapitalENDING WORKING CAPITAL -December 31, 2016 Note: Working Capital = Current Assets minus Current Liabilities OPERATING & CAPITAL FUNDSCash Basis through December 2016Budget YEActual VarianceBudget YEActual VarianceBudget YEActual VarianceBudget YEActual Variance503 503 505 505 518 518 550 550 --568568560560743,000 839,491 96,491 3,495,900 3,366,859 (129,041) 5,531,965 5,477,188 (54,777) 3,371,780 3,304,965 (66,815) ------100 3,961 3,861 2,500 10,258 7,758 3,088 10,127 7,039 4,048 14,729 10,681 137,950 134,583 (3,367) 203,997 203,997 -120,000 32,173 (87,827) ----526 526 -58,608 58,608 863,100 875,624 12,524 3,498,400 3,377,116 (121,284) 5,673,003 5,622,424 (50,579) 3,579,825 3,582,299 2,474 84,590 71,601 12,989 707,569 671,805 35,764 1,711,060 1,654,744 56,317 593,881 566,805 27,076 367,005 181,777 185,228 390,621 354,792 35,829 708,330 672,944 35,387 314,545 283,490 31,056 ---128,200 142,875 (14,675) 431,480 434,652 (3,172) 1,341,600 695,099 646,501 402,715 303,111 99,604 2,315,990 1,915,502 400,488 2,737,121 2,439,779 297,342 377,500 349,410 28,090 -----------------1,500,000 1,500,000 -1,000,000 1,000,000 ----890,827 660,413 230,414 ---626,392 626,392 -39,107 39,107 0 ---------5,033 5,033 (0) -------110,841 110,844 (3) 160,790 160,788 2 212,390 212,652 (262) 854,310 556,490 297,821 4,544,048 3,856,232 687,816 7,248,782 6,862,907 385,875 4,510,449 3,777,987 732,461 8,790 319,134 310,345 (1,045,648) (479,116) 566,532 (1,575,779) (1,240,483) 335,296 (930,624) (195,689) 734,935 778,233 778,233 -2,410,754 2,410,754 -2,305,195 2,305,195 -2,974,119 2,974,119 -787,022 1,097,367 310,345 1,365,105 1,931,638 566,532 729,416 1,064,712 335,296 2,043,495 2,778,430 734,935 8,790 319,134 310,345 (1,045,648) (479,116) 566,532 (1,575,779) (1,240,483) 335,296 (930,624) (195,689) 734,935 778,233 319,134 -2,410,754 (479,116) -3,705,195 (2,640,483) -6,074,119 (3,251,600) -412 4,856 4,444 1,652 9,621 7,969 ------------------------------------------1,500,000 1,500,000 -1,000,000 1,000,000 -442,150 379,330 (62,820) 1,118,926 1,053,713 (65,213) ------1,942,562 1,884,187 (58,375) 2,120,578 2,063,334 (57,243) ----9,740 (9,740) --------------------1,579,579 964,610 614,969 2,907,063 2,087,691 819,372 -723,002 55,241 667,761 --------1,579,579 964,610 614,969 3,630,065 2,152,672 1,477,393 1,400,000 1,400,000 -3,100,001 3,100,001 -1,762,983 2,319,577 556,594 1,590,513 3,010,663 1,420,150 362,983 919,577 556,594 (1,509,488) (89,338) 1,420,150 8,790 319,134 310,345 (1,045,648) (479,116) 566,532 (1,212,796) (320,906) 891,890 (2,440,111) (285,027) 2,155,084 INTERNAL SERVICE FUNDSWORKER'S COMPENSATION FACILITIES INNOVATION & TECHNOLOGYEQUIPMENT RENTAL 37 INNOVATIONEQUIPMENT& TECHNOLOGYRENTALOPERATING REVENUESCharges For Service14,580,114$ 8,387,647$ -$ 9,523,384$ 14,211,584$ 48,077$ 1,307,631$ -$ 871,663$ -$ -$ -$ Interfund Charges For Service---------3,330,400 5,394,652 3,304,965 Sewer Metro Service Revenue--16,809,281 ---------Rents, Leases, Concessions, & Other-----781,003 ---36,459 82,536 -TOTAL OPERATING REVENUES14,580,114$ 8,387,647$ 16,809,281$ 9,523,384$ 14,211,584$ 829,081$ 1,307,631$ -$ 871,663$ 3,366,859$ 5,477,188$ 3,304,965$ OPERATING EXPENSESAdministration & Other4,629,819$ 4,469,797$ -$ 4,280,017$ 1,699,696$ 490,592$ 331,583$ 149,091$ -$ -$ -$ 790,008$ Operations & Maintenance4,698,735 1,616,978 16,516,635 2,249,471 11,709,252 16,388 788,813 -556,490 3,195,819 5,362,907 1,317,447 Depreciation & Amortization3,014,425 2,183,012 -1,920,663 18,819 454,477 50,578 728,777 1,059,202 TOTAL OPERATING EXPENSES12,342,980$ 8,269,787$ 16,516,635$ 8,450,151$ 13,427,766$ 961,457$ 1,170,974$ 149,091$ 556,490$ 3,195,819$ 6,091,684$ 3,166,657$ OPERATING INCOME (LOSS)2,237,134$ 117,860$ 292,647$ 1,073,233$ 783,818$ (132,376)$ 136,657$ (149,091)$ 315,174$ 171,040$ (614,496)$ 138,308$ NON-OPERATING REVENUES & EXPENSESInterest Revenue44,549$ 61,722$ 4,563$ 64,851$ 15,404$ 3,661$ 2,349$ 4,187$ 3,961$ 10,258$ 14,983$ 24,350$ Other Non-Operating Revenue218,928 72,981 -223,758 70,891 169,835 20 ---526 33,122 Gain (Loss) On Sale Of Fixed Assets---9,500 ------25,486 Other Non-Operating Expense(867,085) (284,111) -(372,634) -(7,910) ----(5,033) TOTAL NON-OPERATING REVENUES & EXPENSES(603,609)$ (149,408)$ 4,563$ (74,525)$ 86,294$ 165,586$ 2,369$ 4,187$ 3,961$ 10,258$ 15,509$ 77,925$ 1,633,525$ (31,547)$ 297,210$ 998,708$ 870,112$ 33,210$ 139,026$ (144,903)$ 319,134$ 181,298$ (598,987)$ 216,233$ Contributions2,045,975$ 2,110,375$ -$ 849,033$ -$ -$ -$ -$ -$ -$ Transfers In-3,000,000 -2,000,000 -150,000 ----2,013,914 2,257,710 Transfers Out(88,921) (3,107,430) -(2,227,822) -(150,000) ---(660,413) (1,500,000) (1,626,392) TOTAL CONTRIBUTIONS & TRANSFERS1,957,054$ 2,002,945$ -$ 621,210$ -$ -$ -$ -$ -$ (660,413)$ 513,914$ 631,318$ CHANGE IN FUND BALANCE3,590,579$ 1,971,398$ 297,210$ 1,619,919$ 870,112$ 33,210$ 139,026$ (144,903)$ 319,134$ (479,116)$ (85,074)$ 847,550$ BEGINNING FUND BALANCE -January 1, 201670,782,042$ 80,710,561$ 2,358,518$ 59,339,341$ 3,327,270$ 9,453,173$ 1,237,575$ 1,503,588$ 745,240$ 2,127,285$ 4,388,522$ 10,122,258$ ENDING FUND BALANCE -December 31, 201674,372,621$ 82,681,959$ 2,655,727$ 60,959,260$ 4,197,382$ 9,486,383$ 1,376,601$ 1,358,685$ 1,064,374$ 1,648,169$ 4,303,448$ 10,969,808$ INCOME (LOSS) BEFORE CONTRIBUTIONS & TRANSFERSThe following table provides an analysis of each of the City's Enterprise and Internal Service funds -showing 2016 revenues and expenditures by fund through Period 12 and includes the Fund Balance in the associated Capital Sub-Fund.FUND BALANCEENTERPRISE FUNDSINTERNAL SERVICE FUNDSWATERSEWERSEWER METROSTORMSOLID WASTEAIRPORTCEMETERYINSURANCE WORKER'S COMPENSATION FACILITIES 38 AGENDA BILL APPROVAL FORM Agenda Subject: 4th Quarter 2016 Financial Report Date: March 20, 2017 Department: Finance Attachments: Quarterly Financial Report Budget Impact: $0 Administrative Recommendation: For discussion only. Background Summary: The quarterly financial report summarizes the general state of Citywide financial affairs and highlights significant items or trends that the City Council should be aware of. The attachment provides the fourth quarter 2016 status report based on financial data available as of January 23, 2017 for the period ending December 31, 2016 and sales tax information representing business activity that occurred through October 2016. Staff: Coleman Meeting Date: March 27, 2017 Item Number: Quarterly Financial Report Through Q4-2016 General Fund Summary 1 Quarterly Financial Report Through Q4-2016 December 2016 Financial Report General Fund 2015 Summary of Sources and Uses Annual Budget YE Budget YE Actual YE Actual Amount Operating Revenues Property Tax 6 17,733,500$ 17,733,500$ 17,932,830$ 17,199,418$ 199,330 1.1 % Sales Tax 7-8 14,572,000 14,572,000 14,717,540 14,573,164 145,540 1.0 % Sales Tax - Annexation Credit 1,912,000 1,912,000 2,006,028 1,988,523 94,028 4.9 % Criminal Justice Sales Tax 1,747,000 1,747,000 1,968,679 1,815,833 221,679 12.7 % Brokered Natural Gas Tax 282,000 282,000 223,900 248,670 (58,100)(20.6)% City Utilities Tax 9-10 3,521,200 3,521,200 3,959,131 3,642,218 437,931 12.4 % Admissions Tax 333,600 333,600 378,760 355,170 45,160 13.5 % Electric Tax 10 3,297,700 3,297,700 3,525,357 3,232,503 227,657 6.9 % Natural Gas Tax 10 852,000 852,000 946,959 1,002,334 94,959 11.1 % Cable TV Franchise Fee 11 906,700 906,700 977,736 925,835 71,036 7.8 % Cable TV Franchise Fee - Capital 64,000 64,000 66,315 69,680 2,315 3.6 % Telephone Tax 10 1,620,000 1,620,000 1,494,354 1,661,505 (125,646)(7.8)% Garbage Tax (external)10 106,000 106,000 124,007 114,870 18,007 17.0 % Leasehold Excise Tax 33,000 33,000 204,446 66,544 171,446 519.5 % Gambling Excise Tax 334,400 334,400 494,472 212,939 160,072 47.9 % Taxes subtotal 47,315,100$ 47,315,100$ 49,020,516$ 47,109,207$ 1,705,416$ 3.6 % Business License Fees 13-14 221,000$ 221,000$ 224,876$ 281,654$ 3,876 1.8 % Building Permits 12-13 1,190,000 1,190,000 2,008,970 1,209,836 818,970 68.8 % Other Licenses & Permits 533,600 533,600 750,580 582,986 216,980 40.7 % Intergovernmental (Grants, etc.)14-15 5,647,293 5,647,293 5,737,079 5,317,259 89,786 1.6 % Charges for Services: General Government Services 16 67,200 67,200 76,218 79,413 9,018 13.4 % Public Safety 16 520,300 520,300 638,440 479,061 118,140 22.7 % Development Services Fees 17 680,600 680,600 1,046,249 1,400,292 365,649 53.7 % Culture and Recreation 18 2,105,080 2,105,080 2,316,824 2,317,351 211,744 10.1 % Fines and Penalties 19-20 796,180 796,180 905,921 938,775 109,741 13.8 % Fees/Charges/Fines subtotal 11,761,253$ 11,761,253$ 13,705,158$ 12,606,628$ 1,943,905$ 16.5 % Interest and Other Earnings 20 35,200$ 35,200$ 110,800$ 57,464$ 75,600 214.8 % Rents, Leases and Concessions 20 630,600 630,600 783,930 729,969 153,330 24.3 % Contributions and Donations 20 32,000 32,000 32,435 39,712 435 1.4 % Other Miscellaneous 20-21 157,800 157,800 286,520 218,832 128,720 81.6 % Transfers In 220,926 220,926 217,482 97,443 (3,444)(1.6)% Insurance Recoveries - Capital & Operating 25,000 25,000 83,737 153,041 58,737 234.9 % Other Revenues subtotal 1,101,526$ 1,101,526$ 1,514,904$ 1,296,461$ 413,378$ 37.5 % Total Operating Revenues 60,177,879$ 60,177,879$ 64,240,577$ 61,012,296$ 4,062,698$ 6.8 % Operating Expenditures Council & Mayor 1,135,833$ 1,135,833$ 1,065,395$ 912,825$ 70,438 6.2 % Administration 1,350,722 1,350,722 1,197,355 1,171,634 153,367 11.4 % Community & Human Services 1,329,547 1,329,547 872,023 1,222,557 457,523 34.4 % Municipal Court & Probation 2,280,889 2,280,889 2,242,473 2,239,983 38,416 1.7 % Human Resources 1,406,554 1,406,554 1,283,702 1,050,803 122,852 8.7 % Finance 1,300,773 1,300,773 1,169,633 1,221,253 131,140 10.1 % City Attorney 2,194,830 2,194,830 1,883,009 1,901,141 311,821 14.2 % Community Development 4,731,841 4,731,841 4,109,092 3,882,709 622,748 13.2 % Jail - SCORE 5,583,542 5,583,542 4,019,473 3,658,863 1,564,069 28.0 % Police 23,813,652 23,813,652 23,430,625 22,085,780 383,027 1.6 % Public Works 4 2,809,335 2,809,335 2,945,815 2,620,478 (136,480)(4.9)% Parks, Arts & Recreation 11,584,205 11,584,205 11,322,293 10,816,576 261,912 2.3 % Streets 3,466,563 3,466,563 3,209,370 3,016,275 257,194 7.4 % Non-Departmental 5,489,627 5,489,627 3,934,038 5,302,250 1,555,589 28.3 % Total Operating Expenditures 68,477,914$ 68,477,914$ 62,684,298$ 61,103,128$ 5,793,616$ 8.5 % Page Ref 2016 2016 YE Budget vs. Actual Favorable (Unfavorable) Percentage 2 Quarterly Financial Report Through Q4-2016 Executive Summary This Executive Summary provides an overview of the City’s overall financial position for the fiscal period ending December 31, 2016, reflecting financial data available as of January 23, 2017. General Fund: Through December 2016, General Fund revenues totaled $64.2 million compared to a budget of $60.2 million, and were $3.2 million higher than the revenues collected during the same period in 2015. Some notable variances to budget this year include: • Property tax collections in 2016 totaled $17.9 million, which is 1.1% or $199,000 above budget expectations and exceed 2015 collections by $733,000, or 4.3%. [page 6] • General Fund retail sales tax revenues totaled $14.7 million, exceeding budget by 1.0% or $146,000, and exceeding 2015 collections by $144,000. The primary area of significant increase in sales activity compared to 2015 was the services category. [pages 7-8] Collections in criminal justice sales tax revenues exceeded budget by $222,000, or 12.7%. • The Other Taxes category performed better than budget in 2016. City utility tax revenues exceeded budget by $438,000 or 12.4%, predominately due to higher than budgeted capital system development revenues collected in the Water, Sewer and Storm funds. Electric and natural gas tax revenues collected in 2016 exceeded budget by $228,000 and $95,000, respectively. These revenues were somewhat offset by an unfavorable variance in telephone tax collections of $126,000. [pages 9-10] Year end collections of leasehold excise taxes were $171,000 above budget due to an unanticipated payment for the Emerald Downs property which is tribally owned. Gambling excise tax revenues exceeded budget by $160,000 primarily due to the timing of payments: the City’s main remitter of card game taxes paid 6 months’ worth of taxes from 2015 in the current year. • Building permit revenue collected in 2016 totaled $2.0 million, compared to 2015 collections of $1.2 million and a 2016 budget of $1.2 million. The higher than budgeted revenues were predominately due to a higher than anticipated volume of building permits as well as multiple large commercial building permits issued. [pages 12-13] • Other licenses and permit revenues exceeded budget expectations by $217,000 primarily due to higher than anticipated revenue collected for plumbing permits. This increase in revenues was a result of increased construction activity within the City. One project in particular that contributed to this influx of revenue was the permitting for the Promenade Apartment Project on 312th street. • Development services fees revenues collected in 2016 exceeded budget expectations by $366,000, or 53.7%. This is predominately due to higher than anticipated revenues collected for plan check services related to multiple single family and commercial construction projects within the City. [page 17] 3 Quarterly Financial Report Through Q4-2016 • Culture and recreation revenues collected in 2016 exceeded budget by $212,000, or 10.1%, but were flat compared to collections in 2015. Revenue sources that were significantly above budget include special events revenue and Auburn Theatre ticket sales. [page 18] • Rents, leases and concession revenues were $153,000 or 24.3% above budget, and was $54,000 more than was collected in 2015. This favorable variance is attributed to higher than anticipated revenues collected for City owned facility rentals and parking lot fees. [page 20] Ending 2016 fund balances will not be finalized until approximately June 2017 pending final year-end adjustments and certification by the State Auditor’s Office. Once the final ending 2016 fund balances are available, budgeted beginning 2017 fund balances will be reconciled and adjusted accordingly. General Fund expenditures in 2016 totaled $62.7 million compared to a budget of $68.5 million, representing an 8.5% favorable variance to budget. All departments operated within their allocated budget in 2016 with the exception of the Public Works department. This department ended the year $136,000, or 4.9% over budget. The variance to budget is seen in salary and benefit expenditures, as project engineers charged more of their time to general fund projects versus transportation and utility projects during the year. General Fund expenditures in 2016 were $1.6 million, or 2.6%, higher than in 2015. Salary and benefit costs increased by $1.6 million, or 5.0%, compared to 2015. This year-over-year increase is due primarily to an increase in Council approved FTEs (Full Time Equivalents) and increased costs associated with healthcare and pension benefits. In addition, charges for services paid to Valley Communications for 911 services increased year-over-year by $490,000, or 20.4%. These increased expenditures were somewhat offset by a reduction in intergovernmental expenditures by $713,000 compared to 2015. $60.2 M $68.5 M $64.2 M $62.7 M $0.0 $10.0 $20.0 $30.0 $40.0 $50.0 $60.0 $70.0 $80.0 Revenues Expenditures $ Millions General Fund 2016 Revenues vs. Expenditures 2016 YE Actual 2016 YE Budget 4 Quarterly Financial Report Through Q4-2016 Street Funds: The City’s three street funds are special revenue funds where the revenue sources and expenditures are legally restricted. These funds are used for street capital construction projects, local street repair and arterial street repair and preservation projects. In 2016, Arterial Street Fund revenues totaled $4.2 million as compared to collections of $4.7 million for 2015; expenditures totaled $6.3 million as compared to $6.9 million spent last year. Local Street Fund revenues exceeded budget expectations the year by $692,000, or 39.2%, due to higher than anticipated sales tax revenues from local construction projects; expenditures were $2.1 million as compared with a budget of $2.9 million. Lastly, the Arterial Street Preservation Fund revenues totaled $2.1 million as compared to a budget of $3.1 million, while expenditures totaled $1.1 million. The difference is largely due to grant revenues related to the Auburn Way North project, which has been delayed to 2017. [pages 24–29] Proprietary Funds: The City’s seven proprietary funds account for operations with revenues primarily provided from user fees, charges or contracts for services. At the end of 2016, Water Fund operating revenues exceeded expenditures by $3.4 million compared to $3.3 million in 2015. The Sewer Fund ended the year with expenditures exceeding revenues by $1.4 million due to a transfer of $3.0 million from Sewer operations to the associated capital subfund; excluding this transfer, the fund ended with $1.6 million in income compared to $1.4 million in 2015. The Sewer-Metro Fund operating revenues exceeded expenditures by $297,000 as compared to $188,000 in 2015. Lastly, the Stormwater Fund ended the year with revenues exceeding expenditures by $97,000 compared to $3.4 million in 2015. This variance is largely due to a $2.0 million transfer from Stormwater operations to the associated capital subfund in 2016, and the receipt of over $1.0 million in grant revenues from the Department of Ecology in 2015. [pages 31–32] Internal Service Funds: Internal service funds provide services to other City departments and include functions such as Insurance, Worker’s Compensation, Facilities, Innovation and Technology, and Equipment Rental. All funds have sufficient revenues to cover year-end expenditures. [page 32] Investment Portfolio: The City’s total cash and investments at the end of the 2016 totaled $128.0 million, and compares to $115.1 million at the end of 2015. [attachment] 5 Quarterly Financial Report Through Q4-2016 General Fund Revenues The combined total of property, sales/use, utility, gambling, and admissions taxes provides approximately 80% of all resources supporting general governmental activities. The following section provides additional information on these sources. Property Tax collections in 2016 totaled $17.9 million and were $199,000, or 1.1%, above budget expectations. Property Tax revenue collected in 2016 exceeded collections in 2015 by $733,000, or 4.3%. The majority of property tax revenues are collected during the months of April and October, coinciding with the due dates for the County property tax billings. $0.0 $2.0 $4.0 $6.0 $8.0 $10.0 $12.0 $14.0 $16.0 $18.0 $20.0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecMillionsProperty Taxes 2016 YE Budget 2016 YE Actual 2015 YE Actual 6 Quarterly Financial Report Through Q4-2016 Sales tax collections in 2016 totaled $17.0 million, of which $14.7 million was distributed to the General Fund and $2.3 million was distributed to the Local Street Fund (SOS) program.* Total sales tax revenue distributions to the General Fund in 2016 exceeded budget expectations by $146,000, or 1.0%. * Beginning in 2013, Local Street Fund (Fund 103) street repairs have been funded from sales taxes on construction. The total amount transferred in 2016 was $2,292,280. The graphic above presents sales taxes under the current policy. $0.0 $2.0 $4.0 $6.0 $8.0 $10.0 $12.0 $14.0 $16.0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecMillionsSales & Use Tax (Net of Revenue from Construction) 2016 YE Budget 2016 YE Actual 2015 YE Actual $12.9 $13.0 $12.4 $13.9 $14.6 $14.7 $0.0 $2.0 $4.0 $6.0 $8.0 $10.0 $12.0 $14.0 $16.0 $18.0 $20.0 2011 2012 2013 2014 2015 2016 YEMillionsSales and Use Tax General Fund Only Actuals 7 Quarterly Financial Report Through Q4-2016 The following table breaks out the City’s base sales tax, excluding Criminal Justice and Annexation Credit Sales Tax, by major business sector. Total sales tax revenue collected in 2016 totaled $17.0 million and exceeded prior year collections by $101,000, or 0.6%. The business sectors showing the largest increase in revenues compared to last year were the service and wholesale trade industries. Sales tax revenue on construction, which is transferred to the Local Street Fund (Fund 103) for local street repair and maintenance, totaled $2,292,000, which is $5,000 less than what was collected in 2015, and exceeds the 2016 budget by $682,000, or 42.4%. 2015 2016 Component Group Actual Actual Amount Construction 2,296,863$ 2,292,280$ (4,583)$ (0.2)% Manufacturing 861,555 761,091 (100,465)(11.7)% Transportation & Warehousing 65,671 99,439 33,768 51.4 % Wholesale Trade 1,228,919 1,264,976 36,058 2.9 % Automotive 3,706,535 3,659,497 (47,038)(1.3)% Retail Trade 4,988,898 4,852,592 (136,306)(2.7)% Services 3,645,551 3,970,042 324,491 8.9 % Miscellaneous 71,548 67,105 (4,443)(6.2)% YE Total 16,865,540$ 16,967,023$ 101,482$ 0.6 % Change from 2015 Through December Comparison of Sales Tax Collections by SIC Group Percentage $0.0 $0.2 $0.4 $0.6 $0.8 $1.0 $1.2 $1.4 $1.6 $1.8 $2.0 $2.2 $2.4 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecMillionsSales Tax on Construction Transfer 2016 YE Budget 2016 YE Actual 2015 YE Actual 8 Quarterly Financial Report Through Q4-2016 Utility Taxes consist of interfund taxes on City utilities (Water, Sewer, Storm and Solid Waste) and taxes on external utilities (Electric, Natural Gas, Telephone and Solid Waste). Utility taxes collected in 2016 totaled $10.0 million and exceeded budget by $653,000, or 6.9%. $1.9 $1.8 $2.3 $2.3 $0.0 $0.5 $1.0 $1.5 $2.0 $2.5 2011 2012 2013 2014 2015 2016 YEMillionsSales Tax On Construction Revenue Actuals $0.0 $2.0 $4.0 $6.0 $8.0 $10.0 $12.0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecMillionsUtility Tax 2016 YE Budget 2016 YE Actual 2015 YE Actual 9 Quarterly Financial Report Through Q4-2016 Favorable variances in City interfund utility tax, electric tax, natural gas tax and solid waste tax revenues more than offset lower than expected collections from the telecommunication industry. City interfund utility tax revenue was $438,000 or 12.4% higher than the budget. A significant portion of this favorability to budget is predominately due to higher than budgeted capital system development revenues collected in the Water, Sewer and Storm funds. 2015 2016 2016 Utility Tax Type YE Actual YE Budget YE Actual Amount Amount City Interfund Utility Taxes 3,642,218$ 3,521,200$ 3,959,131$ $ 316,913 8.7 % $ 437,931 12.4 % Electric 3,232,503 3,297,700 3,525,357 292,855 9.1 %227,657 6.9 % Natural Gas 1,002,334 852,000 946,959 (55,375) (5.5)%94,959 11.1 % Telephone 1,661,505 1,620,000 1,494,354 (167,151) (10.1)%(125,646) (7.8)% Solid Waste (external)114,870 106,000 124,007 9,137 8.0 %18,007 17.0 % YE Total 9,653,430$ 9,396,900$ 10,049,809$ $ 396,379 4.1 % $ 652,909 6.9 % Through December Utility Tax by Type 2016 vs. 2015 Actual 2016 vs. Budget Percentage Percentage 10 Quarterly Financial Report Through Q4-2016 Cable TV Franchise Fees, which are collected quarterly, totaled $978,000 and exceeded budget by $71,000, or 7.8%. $0 $100 $200 $300 $400 $500 $600 $700 $800 $900 $1,000 1st Quarter 2nd Quarter 3rd Quarter 4th QuarterThousandsCable TV Franchise Fee 2016 YE Budget 2016 YE Actual 2015 YE Actual 11 Quarterly Financial Report Through Q4-2016 Licenses and Permits include business licenses, building permits, plumbing, electric and other licenses and permit fees. Building permit fees and business licenses make up about 70% of the annual budgeted revenue in this category. Building permit revenues collected in 2016 totaled $2.0 million, compared to 2015 collections of $1.2 million. 2016 building permit activity included permitting for several large commercial projects including The Reserve (a multi-family/retail project on 10th and A Street), the Promenade Apartment Complex, various projects at Costco, and the Multicare remodel project. In addition, numerous residential housing developments were permitted in 2016 – most notably Canyon Creek, Mountain View North, and Lakeland Hills Estates. Of the $2.0 million in building permit revenues collected in 2016, 50% was attributable to commercial projects in the City, and the remaining 50% was predominately single family housing permits. The total number of building permits issued in 2016 was 850 and compares to 747 issued in 2015. $0.0 $0.2 $0.4 $0.6 $0.8 $1.0 $1.2 $1.4 $1.6 $1.8 $2.0 $2.2 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecMillionsBuilding Permits 2016 YE Budget 2016 YE Actual 2015 YE Actual 12 Quarterly Financial Report Through Q4-2016 Business license revenues collected in 2016 totaled $225,000, compared to a budget of $221,000. The graphic below reflects the timing of payments by business owners, where the majority of business license payments are typically collected during the first two months of the year and the last month of the year. $0 $20 $40 $60 $80 $100 $120 $140 $160 $180 $200 $220 $240 $260 $280 $300 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecThousandsBusiness Licenses 2016 YE Budget 2016 YE Actual 2015 YE Actual 13 Quarterly Financial Report Through Q4-2016 Intergovernmental revenues include grants (direct and indirect Federal, state and local), compact revenue from the Muckleshoot Indian Tribe (MIT), intergovernmental, and state shared revenues. Collections in 2016 totaled $5.7 million and ended the year $90,000, or 1.6%, above budget. Favorable variances in Criminal Justice High Crime revenues and Liquor Excise Tax revenues offset the reduced revenues received in Federal and State grant monies. In 2016, grant revenues were $206,000 below budget, although this does not include Period 13 accruals that will account for the 2016 revenues to be collected for reimbursable services. Effective during the state’s 2016-2017 fiscal year budget cycle, the City of Auburn qualified for the Criminal Justice High Crime revenue distribution monies (distributions are made quarterly between July 1, 2016 through June 30, 2017). The eligibility requirements are based upon the City’s crime rate statistics – those Cities whose crime rate exceeds 125% of the statewide average qualify for the distribution. The first distribution was received in July and totaled $143,000. 14 Quarterly Financial Report Through Q4-2016 2015 2016 2016 Revenue YE Actual YE Budget YE Actual Amount Amount Federal Grants 264,721$ 453,073$ 294,006$ $ 29,285 11.1 % $(159,067)(35.1)% State Grants 235,772 206,810 162,692 (73,080) (31.0)%(44,118) (21.3)% Interlocal Grants 30,207 49,000 45,973 15,767 0.0 %(3,027) (6.2)% Muckleshoot Casino Emerg.601,616 630,000 668,629 67,013 11.1 %38,629 6.1 % Intergovernmental Service 18,162 12,000 17,304 (858) (4.7)%5,304 44.2 % State Shared Revenues: Streamlined Sales Tax 1,951,097 2,000,000 1,924,487 (26,610) (1.4)%(75,513) (3.8)% Motor Vehicle Fuel Tax 1,072,284 1,075,000 1,121,112 48,828 4.6 %46,112 4.3 % Criminal Justice - High Crime 96,509 96,000 285,202 188,693 195.5 %189,202 197.1 % Criminal Justice - Population 19,942 18,200 20,807 866 4.3 %2,607 14.3 % Criminal Justice - Special Prog.73,066 68,100 75,865 2,798 3.8 %7,765 11.4 % Marijuana Enforcement 9,759 19,500 29,420 19,661 201.5 %9,920 50.9 % State DUI 11,306 13,500 11,779 473 4.2 %(1,721) (12.8)% Fire Insurance Tax 75,702 70,000 76,569 867 1.1 %6,569 9.4 % Liquor Excise 203,184 302,610 352,467 149,283 73.5 %49,857 16.5 % Liquor Profit 653,931 633,500 650,766 (3,165) (0.5)%17,266 2.7 % Total State Shared:4,166,781 4,296,410 4,548,474 381,693 9.2 %252,064 5.9 % YE Total 5,317,259$ 5,647,293$ 5,737,079$ 419,820$ 7.9 %89,786$ 1.6 % Through December 2016 Intergovernmental Revenues (Grants, Entitlements & Services) 2016 vs. 2015 Actual 2016 vs. Budget % Change % Change 15 Quarterly Financial Report Through Q4-2016 Charges for Services consist of general governmental services, public safety, development service fees and cultural & recreation fees. Overall, charges for services collected in 2016 totaled $4.1 compared to a budget of $3.4 million. Total revenues collected in 2016 exceeded budget by $705,000, or 20.9%. General governmental revenues collected in 2016 totaled $76,000 compared to a budget of $67,000. The majority of the favorable variance was due to increased sales related to passport services, which exceeded budget expectations by $13,000, and ended the year $9,000 higher than 2015 collections. Public safety revenues consist of revenues generated for Police Officer extra duty overtime, where officers are contracted for services and reimbursement is made by the hiring contractor. Effective June 2014, public safety revenue also includes reimbursement from the Muckleshoot Indian Tribe (MIT) for a full-time dedicated Police Officer and associated expenditures. Public safety revenues collected in 2016 totaled $638,000, compared to a budget of $520,000. Revenues collected increased by $159,000 over 2015 collections, primarily due to a 29.0% increase in billable hours for extra duty overtime in 2016 compared to 2015. 2015 2016 2016 Revenue YE Actual YE Budget YE Actual Amount Amount General Government 79,413$ 67,200$ 76,218$ $ (3,195)(4.0)% $ 9,018 13.4 % Public Safety 479,061 520,300 638,440 159,379 33.3 %118,140 22.7 % Development Services 1,400,292 680,600 1,046,249 (354,043) (25.3)%365,649 53.7 % Culture & Recreation 2,317,351 2,105,080 2,316,824 (526) (0.0)%211,744 10.1 % YE Total 4,276,118$ 3,373,180$ 4,077,733$ (198,385)$ (4.6)% $ 704,553 20.9 % Through December 2016 Charges for Services by Type 2016 vs. 2015 Actual 2016 vs. Budget Percentage Percentage 16 Quarterly Financial Report Through Q4-2016 Development services fee collections, which primarily consist of plan check fees, totaled $1.0 million and exceeded budget expectations by $366,000, or 53.7%. Total plan check fees collected in 2016 totaled $759,000, compared to a budget of $550,000 and to 2015 collections of $1.1 million. Plan check revenues collected in 2016 were from numerous commercial and residential projects, including the Multicare remodel project, Holiday Inn Express, LA Fitness, improvements at Boeing as well as for Lakeland Hills Estates, Mountain View North and the Edgeview housing developments. Of the $759,000 in plan check revenues collected in 2016, 37.9% was attributable to commercial projects in the City and the remaining 62.1% was predominately single family housing projects. $0.0 $0.2 $0.4 $0.6 $0.8 $1.0 $1.2 $1.4 $1.6 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecMillionsDevelopment Service Fees 2016 YE Budget 2016 YE Actual 2015 YE Actual 17 Quarterly Financial Report Through Q4-2016 Culture and recreation revenues collected in 2016 totaled $2.3 million, and exceeded budget by $212,000, or 10.1%, although overall collections were unchanged from 2015. In 2016, recreation class revenues decreased compared to 2015 by $77,000. This year-over-year reduction in revenue was due to the closure of the Parks and Recreation Administration Building (PRAB) during the construction of the new Auburn Community & Event Center. The decline in recreation class revenues in 2016 was offset by increased revenues collected for Special Events (related primarily to AuburnFest which was sponsored by the City effective in 2016) and to increased revenues generated from the Cultural Arts Program, as many of the shows added in 2016 were very popular. $0.0 $0.2 $0.4 $0.6 $0.8 $1.0 $1.2 $1.4 $1.6 $1.8 $2.0 $2.2 $2.4 $2.6 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecMillionsCulture & Recreation 2016 YE Budget 2016 YE Actual 2015 YE Actual 18 Quarterly Financial Report Through Q4-2016 Fines & Penalties include traffic and parking infraction penalties, criminal fines (including criminal traffic, criminal non traffic and other criminal offenses) as well as non-court fines such as false alarm fines. Total revenues collected in 2016 totaled $906,000, compared to a budget of $796,000. Revenues collected in 2016 were slightly reduced compared to 2015 primarily due to reduced collections in civil infraction penalties (which is primarily traffic infractions). 2015 2016 2016 Month YE Actual YE Budget YE Actual Amount Amount Civil Penalties 11,287$ 15,400$ 23,763$ $ 12,476 110.5 % $ 8,363 54.3 % Civil Infraction Penalties 495,700 451,600 470,118 (25,582) (5.2)%18,518 4.1 % Redflex Photo Enforcement 15,285 0 15,433 149 1.0 %15,433 N/A % Parking Infractions 141,075 109,800 130,567 (10,508) (7.4)%20,767 18.9 % Criminal Traffic Misdemeanor 59,870 51,200 58,885 (985) (1.6)%7,685 15.0 % Criminal Non-Traffic Fines 50,468 46,000 47,125 (3,342) (6.6)%1,125 2.4 % Criminal Costs 53,211 41,380 60,366 7,155 13.4 %18,986 45.9 % Non-Court Fines & Penalties 111,879 80,800 99,662 (12,217) (10.9)%18,862 23.3 % YE Total 938,775$ 796,180$ 905,921$ $ (32,854)(3.5)% $ 109,741 13.8 % Through December 2016 Fines & Penalties by Type 2016 vs. 2015 Actual 2016 vs. Budget Percentage Percentage $0.0 $0.1 $0.2 $0.3 $0.4 $0.5 $0.6 $0.7 $0.8 $0.9 $1.0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecMillionsFines & Penalties 2016 YE Budget 2016 YE Actual 2015 YE Actual 19 Quarterly Financial Report Through Q4-2016 Miscellaneous revenues consist of investment earnings, income from facility rentals, contributions & donations, and other miscellaneous income, which includes the quarterly purchasing card (P-card) rebate monies. Total revenues collected in this category in 2016 totaled $1.2 million and exceeded budget expectations by $358,000, or 41.9%. Rents and leases revenue in 2016 exceeded budget by $153,000, or 24.3%, primarily due to higher than anticipated revenues generated from City owned facility rentals and increased revenues generated from City owned parking spaces. These two revenue sources exceeded budget expectations by $97,000 and $41,000 respectively. In addition, P-card rebate revenues collected in 2016 exceeded budget expectations by $80,000. 2015 2016 2016 Month YE Actual YE Budget YE Actual Amount Amount Interest & Investments 57,464$ 35,200$ 110,800$ 53,337$ 92.8 %75,600$ 214.8 % Rents & Leases 729,969 630,600 783,930 53,961 7.4 %153,330 24.3 % Contributions & Donations 39,712 32,000 32,435 (7,277)(18.3)%435 1.4 % Other Miscellaneous Revenue 218,832 157,800 286,520 67,688 30.9 %128,720 81.6 % YE Total 1,045,976$ 855,600$ 1,213,685$ 167,709$ 16.0 %358,085$ 41.9 % Miscellaneous Revenues by Type Through December 2016 2016 vs. 2015 2016 vs. Budget Percentage Percentage 20 Quarterly Financial Report Through Q4-2016 Real Estate Excise Tax (REET) revenue is receipted into the Capital Improvement Projects Fund and is used for governmental capital projects. REET revenues collected in 2016 totaled $4.3 million, exceeding budget by $1.5 million. Although real estate excise tax revenue in 2016 greatly exceeded budget expectations, the total amount collected was $278,000 less than the amount collected in 2015 because 2015 included the sale of several large businesses in the City such as the Outlet Collection – Seattle and the Lakeland Town Center. Real estate sales in the City of Auburn in Q4-2016 represent the sale of both commercial and single family residences, including the sale of multiple vacant lots. 2015 2016 2016 Month Actual Budget Actual Amount Amount Jan 125,089$ 97,400$ 339,594$ 214,505$ 171.5 %242,194$ 248.7 % Feb 115,287 128,700 286,943 171,656 148.9 %158,243 123.0 % Mar 1,394,226 601,900 293,361 (1,100,865) (79.0)%(308,539) (51.3)% Apr 423,394 244,000 574,925 151,531 35.8 %330,925 135.6 % May 345,489 234,300 255,078 (90,410) (26.2)%20,778 8.9 % Jun 436,101 267,400 329,081 (107,020) (24.5)%61,681 23.1 % Jul 348,745 260,200 360,857 12,112 3.5 %100,657 38.7 % Aug 269,454 212,100 673,012 403,557 149.8 %460,912 217.3 % Sep 228,140 163,500 338,340 110,200 48.3 %174,840 106.9 % Oct 296,100 183,000 249,714 (46,386) (15.7)%66,714 36.5 % Nov 233,389 195,900 321,895 88,507 37.9 %125,995 64.3 % Dec 347,582 211,600 262,543 (85,038) (24.5)%50,943 24.1 % YE Total 4,562,995$ 2,800,000$ 4,285,344$ (277,651)$ (6.1)%1,485,344$ 53.0 % Real Estate Excise Tax Revenues December 2016 Percentage 2016 vs. 2015 2016 vs. Budget Percentage 21 Quarterly Financial Report Through Q4-2016 $0.0 $0.5 $1.0 $1.5 $2.0 $2.5 $3.0 $3.5 $4.0 $4.5 $5.0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecMillionsReal Estate Excise Tax 2016 YE Budget 2016 YE Actual 2015 YE Actual 22 Quarterly Financial Report Through Q4-2016 Pet Licensing In 2016, 4,706 pet licenses were sold, resulting in $128,680 in revenue. In 2015, 5,112 licenses were sold, resulting in $147,152 in revenue. The 2016 budget goal for pet licensing revenue is $240,000. 23 Quarterly Financial Report Through Q4-2016 Street Funds This section provides financial overview of the City’s three street funds for the year ending December 31, 2016. The City’s three street funds include the Arterial Street Fund (Fund 102), the Local Street Fund (Fund 103), and the Arterial Street Preservation Fund (Fund 105). The capital project expenditures in these funds are budgeted primarily based on the collection/disbursement average for the same period of the prior two years. Fund 102 – Arterial Street Fund The Arterial Street Fund is a Special Revenue Fund that is funded by transportation grants, traffic impact fees, a portion of the City’s gas tax receipts, Public Works Trust Fund loans, developer contributions, and other sources. There were over 30 separate street projects budgeted in this fund in 2016. Some of these projects included the South 272nd /South 277th Street Corridor Improvement Project, the West Main Street Multimodal Corridor and ITS Improvement Project, and the AWS Corridor Safety Improvement Project (Muckleshoot Plaza to Dogwood). Through December 31, 2016, revenues collected totaled $4.2 million and compare to collections of $4.7 million in 2015. Expenditures through year-end totaled $6.3 million and compare to $6.9 million spent the same period last year. Expenditures for the South 272nd/South 277th Street Corridor Improvements project and the West Main Street Multimodal Corridor and ITS Improvements project, which constitute approximately 70% of budgeted capital expenditures, were below budget due to construction sequencing for these multi-year projects and timing lag between work performance and the City’s reimbursement of costs incurred. Fund 102 - Arterial Street 2015 Summary of Sources and Uses Annual Report Period: December 2016 Budget YE Budget YE Actual YE Actual Amount Revenues Federal Grants 7,270,016$ 7,270,016$ 580,492$ 1,080,056$ (6,689,524)$ (92.0)% State Grants 4,292,973 4,292,973 1,193,710 1,214,948 (3,099,263) (72.2)% Motor Vehicle Fuel and Multimodal Taxes 530,000 530,000 580,220 493,808 50,220 9.5 % Developer Contributions 1,601,145 1,601,145 510,383 628,027 (1,090,762) (68.1)% Miscellaneous Revenue 373,805 373,805 64,862 420,839 (308,943) (82.6)% Other Governmental Agencies - - - 61,520 - Public Works Trust Fund Loans - - - - - Operating Transfer In 3,882,586 3,882,586 1,295,215 795,280 (2,587,371) (66.6)% Investment Income 2,000 2,000 6,484 2,670 4,484 224.2 % Total Revenues 17,952,525$ 17,952,525$ 4,231,365$ 4,697,147$ (13,721,160)$ (76.4)% Expenditures Salary and Benefits 839,323$ 839,323$ 490,836$ 442,151$ 348,486$ 41.5 % Capital Outlay 17,428,903 17,428,903 5,302,678 5,920,803 12,126,225 69.6 % Subtotal - Capital Project Expenditures 18,268,226 18,268,226 5,793,514 6,362,954 12,474,711 68.3 % Services and Charges 245,000 245,000 224,507 273,820 20,493 8.4 % Interfund Payments for Services 74,550 74,550 74,556 71,148 (6) (0.0)% Debt Service Principal and Interest 217,862 217,862 210,205 218,761 7,657 3.5 % Operating Transfer Out - - - 378 - Total Expenditures 18,805,638$ 18,805,638$ 6,302,783$ 6,927,061$ 12,502,855$ 66.5 % Net Change in Fund Balance (853,113)$ (853,113)$ (2,071,418)$ (2,229,914)$ (1,218,305)$ 142.8 % Beg. Fund Balance, January 2016 2,405,821$ Net Change in Fund Balance, December 2016 (2,071,418) Ending Fund Balance, December 2016 334,404$ 2016 Budgeted Ending Fund Balance 1,552,709$ 2016 2016 YE Budget vs. Actual Favorable (Unfavorable) Percentage 24 Quarterly Financial Report Through Q4-2016 This table presents the status of the projects with the most significant impact on this fund: Notes: • S 277th St. Corridor Improvements: Majority scheduled for completion in 2017. • W. Main St. Multimodal: Majority of the project was constructed in 2016 but will continue into 2017. • AWS Corridor Safety Improvements: ROW acquisition took longer than scheduled and construction will begin in 2017. Anticipated carry forwards in this fund in BA#1 total $11.8 million, which accounts for the bulk of the variance between budget and actual. This will largely be offset by grant revenues, traffic impact fees, contributions, and other revenues of $11.0 million that had originally been budgeted in 2016. Name Annual Budget YE Actual Variance S. 277th St Corridor Improvements $6.0M $1.7M $4.3M W. Main St Multimodal Corridor & ITS Imp $4.4M $2.5M $1.9M AWS Corridor Safety Imp. -- Muckleshoot Pl.$2.6M $0.3M $2.3M All Other Projects (28 Others Budgeted)$5.3M $1.4M $3.9M Total $18.3M $5.8M $12.5M Fund 102 - Arterial Street Capital Projects Status 25 Quarterly Financial Report Through Q4-2016 Fund 103 – Local Street Fund The Local Street Fund is a Special Revenue Fund where the revenue from sales taxes on construction are used for local street repairs. In 2016 the revenues in this fund exceeded budget expectations by $692,000, or 39.2%, due to higher than anticipated sales tax revenues from local construction projects. Expenditures in 2016 totaled $2.1 million and compare to an annual budget of $2.9 million. The majority of expenditures from the fund’s largest project, 2016 Local Street Pavement Reconstruction Project, occurred in Q4 2016 with a limited amount of costs anticipated in 2017. The additional revenues will be programmed into future year budgets. Fund 103 - Local Street Fund 2015 Summary of Sources and Uses Annual Report Period: December 2016 Budget YE Budget YE Actual YE Actual Amount Revenues Sales Tax on Construction 1,610,000$ 1,609,800$ 2,292,280$ 2,296,863$ 682,480$ 42.4 % Operating Transfer In 150,000 150,000 150,000 150,000 - 0.0 % Interest Earnings 2,500 2,500 11,532 3,644 9,032 361.3 % Total Revenues 1,762,500$ 1,762,300$ 2,453,812$ 2,450,507$ 691,512$ 39.2 % Expenditures Salary and Benefits 175,090$ 175,090$ 122,298$ 114,279$ 52,791$ 30.2 % Services and Charges 300 300$ 708 583 (408) (136.2)% Capital Outlay 2,676,768 2,676,768 1,974,528 2,285,074 702,240 26.2 % Interfund Payments for Services 12,240 12,240 12,240 12,480 - 0.0 % Operating Transfer Out - - - 378 - Total Expenditures 2,864,398$ 2,864,398$ 2,109,775$ 2,412,794$ 754,623$ 26.3 % Net Change in Fund Balance (1,101,898)$ (1,102,098)$ 344,037$ 37,713$ 1,446,135$ (131.2)% Beg. Fund Balance, January 2016 2,080,690$ Net Change in Fund Balance, December 2016 344,037 Ending Fund Balance, December 2016 2,424,727$ 2016 2016 YE Budget vs. Actual Favorable (Unfavorable) Percentage 26 Quarterly Financial Report Through Q4-2016 This table presents the status of the projects with the most significant impact on this fund: Notes: • 2016 Local Street Pavement Reconstruction: Substantially completed November 2016, final acceptance anticipated March 2017. • 2017 Local Street Reconst. & Preservation: 2016 funding is for design; project to be carried forward to 2017. Anticipated carry forwards in this fund in BA#1 total $703,000, which accounts for the variance between budget and actual. Name Annual Budget YE Actual Variance 2016 Local Street Pavement Reconst.$2.4M $2.0M $0.4M 2017 Local St. Reconst. & Preservation $0.3M $0.0M $0.3M All Other Projects (2 Others Budgeted)$0.0M $0.0M $0.0M Total $2.7M $2.0M $0.7M Fund 103 - Local Street Capital Projects Status 27 Quarterly Financial Report Through Q4-2016 Fund 105 – Arterial Street Preservation Fund The Arterial Street Preservation Fund is a Special Revenue Fund which is primarily funded by a 1.0% utility tax that was adopted by Council in 2008; these utility tax revenues are restricted for arterial street repair and preservation projects. Some projects budgeted within the Arterial Street Preservation Fund in 2016 include the Auburn Way North Preservation Project and the B Street NW Reconstruction Project. In 2016 revenues totaled $2.2 million and compare to a budget of $3.1 million. This difference is mostly due to the Auburn Way North Preservation project, for which $880,000 in federal grant funding was budgeted, being moved forward to 2017. Expenditures in 2016 totaled $1.1 million, which is approximately 21.1% of annual budgeted expenditures. This is primarily due to the the fund’s main project – Auburn Way North Preservation – being repackaged and sent to bid a second time after the first round of bidding produced higher-than-expected costs. This project is anticipated to be rebid in February 2017, which significantly affects the fund’s 2016 year-end results. Additionally, construction on the B Street NW Reconstruction Project was moved to 2017 due to additional utility work being added to the project. This project remains in the design phase; construction is anticipated to start in May 2017. Fund 105 - Arterial St. Presv. 2015 Summary of Sources and Uses Annual Report Period: December 2016 Budget YE Budget YE Actual YE Actual Amount Revenues City Utility Tax 589,000$ 589,000$ 659,855$ 607,036$ 70,855$ 12.0 % Electric Utility Tax 660,500 660,500 705,071 646,501 44,571 6.7 % Natural Gas Utility Tax 170,400 170,400 189,392 200,467 18,992 11.1 % Cable TV Tax 181,300 181,300 197,497 186,934 16,197 8.9 % Telephone Utility Tax 324,000 324,000 298,871 332,301 (25,129) (7.8)% Garbage Utility Tax (External Haulers)17,700 17,700 20,668 19,145 2,968 16.8 % Grants 1,053,626 1,053,626 37,979 59,064 (1,015,647) (96.4)% Developer Mitigation Fees - - - - - Operating Transfer In 150,000 150,000 18,250 612,340 (131,750) (87.8)% Interest Earnings 1,500 1,500 9,858 3,499 8,358 557.2 % Total Revenues 3,148,026$ 3,148,026$ 2,137,442$ 2,667,287$ (1,010,584)$ (32.1)% Expenditures Salary and Benefits 124,095$ 124,095$ 286,880$ 218,442$ (162,785)$ (131.2)% Capital Outlay 4,258,226 4,258,226 508,281 3,796,694 3,749,946 88.1 % Subtotal - Capital Project Expenditures 4,382,321 4,382,321 795,161 4,015,136 3,587,161 81.9 % Supplies - - - - - Services and Charges 212,500 212,500$ 62,500 - 150,000 70.6 % Operating Transfer Out 401,750 401,750$ 195,636 32,786 206,114 51.3 % Total Expenditures 4,996,571$ 4,996,571$ 1,053,297$ 4,047,922$ 3,943,274$ 78.9 % Net Change in Fund Balance (1,848,545)$ (1,848,545)$ 1,084,145$ (1,380,634)$ 2,932,690$ (158.6)% Beg. Fund Balance, January 2016 1,943,865$ Net Change in Fund Balance, December 2016 1,084,145 Ending Fund Balance, December 2016 3,028,010$ 2016 Budgeted Ending Fund Balance 95,319$ 2016 2016 YE Budget vs. Actual Favorable (Unfavorable) Percentage 28 Quarterly Financial Report Through Q4-2016 This table presents the status of the projects with the most significant impact on the fund: Notes: • Auburn Way N Preservation: This project to be re-bid in February 2017 after unsatisfactory 2016 bids. • B Street NW Reconstruction: Project still in design due to prioritizing grant-funded projects that were expiring and additional utility work added to the project. Anticipated carry forwards in this fund in BA#1 total $2.7 million, which accounts for the bulk of the variance between budget and actual. This will partially be offset by grant revenues, traffic impact fees, and other revenues of $1.1 million that had originally been budgeted in 2016. Name Annual Budget YE Actual Variance Auburn Way North Preservation $1.8M $0.1M $1.7M B Street NW Reconstruction $1.5M $0.1M $1.4M All Other Projects (7 Others Budgeted)$1.1M $0.6M $0.5M Total $4.4M $0.8M $3.6M Capital Projects Status Fund 105 - Arterial Street Preservation 29 Quarterly Financial Report Through Q4-2016 Fund 124 – Mitigation Fees The Mitigation Fees Fund is a Special Revenue Fund funded from revenue from new The Mitigation Fees Fund is a Special Revenue Fund funded from revenue from new development, which is assessed at the time applications are received for development activity. These funds are used to mitigate costs associated with City growth. Through year-end 2016, revenues were significantly above budget expectations, at 450.9% of the annual budgeted amount. This is due to higher-than-expected transportation, parks and fire impact fee revenues in the month of July, driven by the construction of The Promenade, a 298-unit apartment complex in Lea Hill. Another revenue spike occurred in Q4-2016 due to the construction of a 600-unit mixed-use senior and multifamily housing development, The Villas and The Reserve. Expenditures were well below budget due to delays in construction projects funded by these revenues. Fund 124 - Mitigation Fees Summary of Sources and Uses Report Period Through:Ending Ending December 2016 Fund Balance Fund Balance Transportation Impact Fees 3,084,106$ 1,010,789$ 5,755,401$ 800,000$ 3,006,075$ 1,476,010$ Transportation Migitation Fees 9,959 4,198 263,472 - 173,144 84,566 Fire Impact Fees 383,460 400,000 297,680 350,000 400,000 264,220 Fire Mitigation Fees - - 82 - - 82 Parks Impact Fees 3,753,098 84,511 4,791,800 75,000 300,000 898,213 Parks Mitigation Fees - - 330,319 - - 330,319 School Impact Admin Fees 26,546 60,182 44,479 15,000 61,626 31,489 Wetland Mitigation Fees - - 68,626 - - 68,626 Interest and Investment Income 36,500 - 36,500 4,890 - 4,890 Fees in Lieu of Improvements 122,525 - 122,525 - - - Operating Transfers - - - 400,000 - 400,000 Totals 7,416,194$ 1,559,680$ 11,710,884$ 1,644,890$ 3,940,845$ 3,558,415$ Beginning Fund Balance, January 2016 5,854,370$ Net Change in Fund Balance, December 2016 5,856,514 Ending Fund Balance, December 2016 11,710,884$ 2016 Budgeted Ending Fund Balance 3,558,415$ YE Actuals BUDGET Revenues Expenditures Revenues Expenditures 30 Quarterly Financial Report Through Q4-2016 Proprietary Funds Detailed income and expense statements for Enterprise and Internal Service funds can be found in the Appendices at the end of this report. The format changed in Q1-2016 and, in lieu of a working capital statement, there are now operating and, as applicable, capital fund reports for these funds showing budget, actuals, and variances. Operating funds house all the operating costs along with debt service and financing obligations. Capital funds show costs associated with capital acquisition and construction. Both the operating and capital funds have a working capital balance. This approach isolates those funds available for capital and cash flow needs for daily operations, and project managers will know exactly how much working capital is available for current and planned projects. Budget Amendment #6, adopted in July 2016, moved working capital from the operating funds to the capital funds along with all the other beginning fund balance adjustments. System development revenues previously credited to the operating funds are now directed to the corresponding capital funds. In 2016, the Water Utility had operating income before depreciation of $3.4 million as compared with $3.3 million for 2015. Water sales in 2016 totaled 3.58 million hundred cubic feet (ccf), compared to 3.50 million ccf in 2015, representing a 2.3% increase. Revenues ended the year 8.4% above budget due to higher than expected water sales. The Sewer Utility ended the year with an operating loss of $1.4 million. However, this was due to a $3.0 million budgeted interfund transfer from the operations fund to the capital subfund in November. Less this transfer, the operations fund ended with an operating income of $1.6 million. This compares with an operating income of $1.4 million in 2015. 0 100,000 200,000 300,000 400,000 500,000 600,000 700,000 800,000 900,000 1,000,000 $0 $200 $400 $600 $800 $1,000 $1,200 $1,400 $1,600 $1,800 $2,000 Jan Feb M ar Apr M ay Jun Jul Aug Sep Oct Nov Dec CCFThousandsWater Sale Revenues vs Water Sold 2016 vs 2015 2015 Water Sales ($) 2016 Water Sales ($) 2015 Water Sold (ccf) 2016 Water Sold (ccf) 31 Quarterly Financial Report Through Q4-2016 The Sewer-Metro Utility ended the year with an operating income of $297,000, as compared with $188,000 in 2015, an increase of 57.7%. The Stormwater Utility ended 2016 with $97,000 in operating income, which is about $3.2 million below 2015. This is largely due to the receipt of over $1.0 million in grant revenues from the Department of Ecology in Q2 and Q3-2015, inflating 2015 revenues, and a one-time transfer of $2.0 million from the operations to the capital subfund in 2016, inflating 2016 expenditures. The Cemetery Fund ended 2016 with an operating income of $188,000 as compared with an operating income of $101,000 in 2015. Operating expenditures totaled $1.1 million in 2016, compared to $1.0 million last year. The increase is mainly a result of higher cost of supplies due to increased inventory costs associated with higher demand. Internal Service Funds Operating expenditures within the Insurance Fund represent the premium cost pool that will be allocated monthly to other City funds over the course of 2016. As a result, this balance will gradually diminish each month throughout the year. No significant variances are reported in the Worker’s Compensation, Facilities, Innovation & Technology, or Equipment Rental Funds. Contact Information This report is prepared by the Finance Department. Additional financial information can also be viewed at our website: http://www.auburnwa.gov/. For any questions about this report please contact Shelley Coleman at scoleman@auburnwa.gov. 32 Investment Purchase Purchase Maturity Yield to Type Date Price Date Maturity State Investment Pool Various 120,563,008$ Various 0.51% KeyBank Money Market Various 6,286,928 Various 0.02% FNMA 3/11/2016 998,844 2/22/2019 1.20% LAKUTL 9/25/2013 235,919 11/1/2017 1.90% Total Cash & Investments 128,084,699$ 0.491% Investment Mix % of Total State Investment Pool 94.1%Current 6-month treasury rate 0.64% KeyBank Money Market 4.9%Current State Pool rate 0.51% US Treasury 0.0%KeyBank Money Market 0.02% FNMA 0.8% LAKUTL 0.2% 100.0% City of Auburn Investment Portfolio Summary December 31, 2016 Summary 33 SALES TAX SUMMARY DECEMBER 2016 SALES TAX DISTRIBUTIONS (FOR OCTOBER 2016 RETAIL ACTIVITY) 2015 Annual Total 2015 YTD 2016 YTD YTD 2015 Annual Total 2015 YTD 2016 YTD YTD NAICS CONSTRUCTION (Nov '14-Oct '15)(Nov '14-Oct '15)(Nov '15-Oct '16)% Diff NAICS AUTOMOTIVE (Nov '14-Oct '15)(Nov '14-Oct '15)(Nov '15-Oct '16)% Diff 236 Construction of Buildings 1,229,166 1,229,166 1,139,466 -7.3%441 Motor Vehicle and Parts Dealer 3,465,199 3,465,199 3,409,019 -1.6% 237 Heavy and Civil Construction 252,280 252,280 309,344 22.6%447 Gasoline Stations 241,336 241,336 250,478 3.8% 238 Specialty Trade Contractors 815,416 815,416 843,470 3.4%TOTAL AUTOMOTIVE 3,706,535 3,706,535 3,659,497 -1.3% TOTAL CONSTRUCTION 2,296,863 2,296,863 2,292,280 -0.2%Overall Change from Previous Year -47,038 Overall Change from Previous Year -4,583 2015 Annual Total 2015 YTD 2016 YTD YTD 2015 Annual Total 2015 YTD 2016 YTD YTD NAICS RETAIL TRADE (Nov '14-Oct '15)(Nov '14-Oct '15)(Nov '15-Oct '16)% Diff NAICS MANUFACTURING (Nov '14-Oct '15)(Nov '14-Oct '15)(Nov '15-Oct '16)% Diff 442 Furniture and Home Furnishings 253,871 253,871 185,234 f -27.0% 311 Food Manufacturing 3,973 3,973 3,278 -17.5%443 Electronics and Appliances 295,127 295,127 220,553 -25.3% 312 Beverage and Tobacco Products 9,323 9,323 9,601 3.0%444 Building Material and Garden 589,676 589,676 579,076 -1.8% 313 Textile Mills 372 372 415 11.7%445 Food and Beverage Stores 368,411 368,411 397,177 d 7.8% 314 Textile Product Mills 3,039 3,039 3,554 17.0%446 Health and Personal Care Store 220,603 220,603 284,191 28.8% 315 Apparel Manufacturing 116 116 155 33.3%448 Clothing and Accessories 1,079,933 1,079,933 1,136,431 5.2% 316 Leather and Allied Products 8 8 38 380.9%451 Sporting Goods, Hobby, Books 220,168 220,168 237,555 7.9% 321 Wood Product Manufacturing 65,039 65,039 58,391 -10.2%452 General Merchandise Stores 988,004 988,004 c 1,017,905 3.0% 322 Paper Manufacturing 7,762 7,762 8,047 3.7%453 Miscellaneous Store Retailers 578,836 578,836 473,398 -18.2% 323 Printing and Related Support 59,750 59,750 52,610 -11.9%454 Nonstore Retailers 394,268 394,268 321,071 -18.6% 324 Petroleum and Coal Products 5,394 5,394 2,145 -60.2%TOTAL RETAIL TRADE 4,988,898 4,988,898 4,852,592 -2.7% 325 Chemical Manufacturing 5,508 5,508 10,183 84.9%Overall Change from Previous Year -136,306 326 Plastics and Rubber Products 9,081 9,081 8,168 -10.1% 327 Nonmetallic Mineral Products 14,514 14,514 17,429 20.1% 331 Primary Metal Manufacturing 1,692 1,692 442 -73.9%2015 Annual Total 2015 YTD 2016 YTD YTD 332 Fabricated Metal Product Manuf 37,819 37,819 29,409 -22.2%NAICS SERVICES (Nov '14-Oct '15)(Nov '14-Oct '15)(Nov '15-Oct '16)% Diff 333 Machinery Manufacturing 21,693 21,693 16,461 -24.1%51*Information 526,003 526,003 b 630,158 19.8% 334 Computer and Electronic Product 8,388 8,388 10,780 28.5%52*Finance and Insurance 95,471 95,471 110,728 16.0% 335 Electric Equipment, Appliances 827 827 445 -46.2%53*Real Estate, Rental, Leasing 334,095 334,095 358,628 7.3% 336 Transportation Equipment Man 536,513 536,513 471,441 -12.1%541 Professional, Scientific, Tech 195,478 195,478 237,656 21.6% 337 Furniture and Related Products 20,389 20,389 18,661 -8.5%551 Company Management 9,230 9,230 330 -96.4% 339 Miscellaneous Manufacturing 50,358 50,358 39,437 -21.7%56*Admin. Supp., Remed Svcs 373,781 373,781 328,453 -12.1% TOTAL MANUFACTURING 861,555 861,555 761,091 -11.7%611 Educational Services 60,189 60,189 a 50,026 -16.9% Overall Change from Previous Year -100,465 62*Health Care Social Assistance 81,684 81,684 91,643 12.2% 71*Arts and Entertainment 207,717 207,717 156,301 -24.8% 72*Accommodation and Food Svcs 1,159,033 1,159,033 1,217,734 5.1% 2015 Annual Total 2015 YTD 2016 YTD YTD 81*Other Services 475,505 475,505 646,579 36.0% NAICS TRANSPORTATION AND WAREHOUSING (Nov '14-Oct '15)(Nov '14-Oct '15)(Nov '15-Oct '16)% Diff 92*Public Administration 127,364 127,364 141,806 11.3% 481 Air Transportation 0 0 1 N/A TOTAL SERVICES 3,645,551 3,645,551 3,970,042 8.9% 482 Rail Transportation 10,457 10,457 24,331 132.7%Overall Change from Previous Year 324,491 484 Truck Transportation 7,590 7,590 7,067 -6.9% 485 Transit and Ground Passengers 209 209 114 -45.5% 488 Transportation Support 36,669 36,669 52,828 44.1%2015 Annual Total 2015 YTD 2016 YTD YTD 491 Postal Service 259 259 274 5.8%NAICS MISCELLANEOUS (Nov '14-Oct '15)(Nov '14-Oct '15)(Nov '15-Oct '16)% Diff 492 Couriers and Messengers 1 1 301 25370.3%000 Unknown 0 0 0 N/A 493 Warehousing and Storage 10,487 10,487 14,523 38.5%111-115 Agriculture, Forestry, Fishing 4,510 4,510 5,534 22.7% TOTAL TRANSPORTATION 65,671 65,671 99,439 51.4%211-221 Mining & Utilities 27,456 27,456 29,410 7.1% Overall Change from Previous Year 33,768 999 Unclassifiable Establishments 39,581 39,581 32,161 e -18.7% TOTAL SERVICES 71,548 71,548 67,105 -6.2% Overall Change from Previous Year -4,443 2015 Annual Total 2015 YTD 2016 YTD YTD NAICS WHOLESALE TRADE (Nov '14-Oct '15)(Nov '14-Oct '15)(Nov '15-Oct '16)% Diff 423 Wholesale Trade, Durable Goods 1,010,730 1,010,730 981,820 -2.9%GRAND TOTAL 16,865,540 16,865,540 16,967,023 424 Wholesale Trade, Nondurable 216,303 216,303 281,166 30.0%Overall Change from Previous Year 101,482 0.6% 425 Wholesale Electronic Markets 1,885 1,885 1,991 5.6% TOTAL WHOLESALE 1,228,919 1,228,919 1,264,976 2.9%Total December 2016 Sales Tax Distributions 1,352,227 Overall Change from Previous Year 36,058 Dollar Increase from December 2015 (25,171) Percent Increase from December 2015 Includes Adjustments in excess of +/- $10,000.Comparisons: a. WA State Dept of Revenue audit adjustment to sales tax returns for period of February 2015 (adjustment: $11,845).December 2015 16,865,540 15,488,142 1,377,398 b. WA State Dept of Revenue audit adjustment to sales tax returns for period of March 2015 (adjustment: -$17,839).December 2014 15,622,791 14,279,403 1,343,388 c. WA State Dept of Revenue audit adjustment to sales tax returns for period of April 2015 (adjustment: -$43,875). d. WA State Dept of Revenue audit adjustment to sales tax returns for period of November 2015 (adjustment: $10,572). e. WA State Dept of Revenue audit adjustment to sales tax returns for period of April 2016 (adjustment: - $52,898). f. WA State Dept of Revenue audit adjustment to sales tax returns for period of May 2016 (adjustment: - $16,496). 12/28/16 Prepared by Auburn Finance Department -1.8% 34 3/21/2017 8:58 AM Budget YE Actual Variance Budget YE Actual Variance Budget YE Actual Variance Budget YE Actual Variance 430 430 431 431 433 433 432 432 OPERATING FUND:460 460 461 461 462 462 OPERATING REVENUES Charges For Service 13,698,782 14,592,941 894,159 7,847,883 8,387,647 539,764 16,332,687 16,809,281 476,594 9,151,487 9,523,384 371,897 Grants - - - 50,000 - (50,000) Interest Earnings 7,735 29,067 21,332 10,697 27,028 16,331 700 4,563 3,863 13,865 25,176 11,311 Operating Transfers - - - Rents, Leases, Concessions, & Other 206,854 462,328 255,474 70,128 72,981 2,853 - - - 58,674 90,747 32,073 TOTAL OPERATING REVENUES 13,913,371 15,084,337 1,170,966 7,928,708 8,487,656 558,948 16,333,387 16,813,844 480,457 9,274,026 9,639,307 365,281 OPERATING EXPENSES Salaries & Wages 2,587,276 2,502,435 84,841 1,758,478 1,672,938 85,540 - - - 2,397,119 2,542,675 (145,556) Benefits 1,251,312 1,152,772 98,540 871,146 771,125 100,021 - - - 1,224,350 1,161,566 62,784 Supplies 321,994 290,198 31,796 130,500 89,728 40,772 - - - 94,300 73,145 21,155 Other Service Charges 5,185,175 4,086,986 1,098,189 2,723,275 2,565,614 157,661 - - - 1,670,215 1,327,125 343,090 Intergovernmental Services (Less Transfers Out)- - - 9,500 3,728 5,772 113,000 99,846 13,154 Transfer Out to Operating Sub-Fund - - - 3,000,000 3,000,000 - 2,000,000 2,000,000 - Transfer Out to Other Funds 133,960 88,921 45,039 162,508 107,430 55,078 302,980 227,822 75,157 Waste Management Payments Sewer Metro Services 16,517,200 16,516,635 565 Debt Service Principal 1,702,563 1,459,888 242,675 541,127 442,927 98,200 413,162 423,302 (10,140) Debt Service Interest 1,006,253 867,085 139,168 277,082 284,111 (7,029) - - - 360,525 372,634 (12,109) Interfund Loan Repayment - - - Interfund Operating Rentals & Supplies 1,276,967 1,277,876 (909) 952,338 952,635 (297) - - - 1,312,518 1,314,212 (1,694) TOTAL OPERATING EXPENSES 13,465,499 11,726,161 1,739,338 10,425,954 9,890,236 535,719 16,517,200 16,516,635 565 9,888,169 9,542,328 345,841 OPERATING REVENUES LESS EXPENSES BEFORE DEPRECIATION (*) 447,873 3,358,176 2,910,304 (2,497,246) (1,402,579) 1,094,667 (183,813) 297,210 481,023 (614,143) 96,979 711,122 BEGINNING WORKING CAPITAL - January 1, 2016 4,191,201 4,191,201 - 4,262,859 4,262,859 - 2,358,518 2,358,518 - 2,691,382 2,691,382 - ENDING WORKING CAPITAL - December 31, 2016 4,639,074 7,549,377 2,910,304 1,765,613 2,860,280 1,094,667 2,174,705 2,655,728 481,023 2,077,239 2,788,361 711,122 NET CHANGE IN WORKING CAPITAL (see Note)447,872 3,358,176 2,910,304 (2,497,246) (1,402,579) 1,094,667 (183,813) 297,210 481,023 (614,143) 96,979 711,122 9,261,201 (3,145,071) - 12,862,859 (9,580,742) - 2,358,518 297,210 - 14,591,382 (11,211,937) - CAPITAL FUND: CAPITAL REVENUES Interest Revenue 1,265 15,481 14,216 2,303 34,694 32,391 2,135 39,675 37,540 Grants 300,000 - (300,000) Contributions - - - - - - 7,806 - (7,806) Other Non-Operating Revenue - - - - - - - - - Gain (Loss) On Sale Of Fixed Assets - - - - - - - - - Increase In Contributions - System Development 350,000 1,789,747 1,439,747 240,000 2,110,375 1,870,375 350,000 849,033 499,033 Increase In Contributions - Other - - - - - - - - - Increase In Contributions - FAA - - - - - - - - - Proceeds of Debt Activity 4,070,037 820,037 (3,250,000) - - - - - - Transfers In from Operating Sub-Fund - - - 3,000,000 3,000,000 - 2,000,000 2,000,000 - Transfer In from Other Funds - - - - - - - - Other Sources - - - - 22,500 22,500 - 142,511 142,511 TOTAL CAPITAL REVENUES 4,421,302 2,625,265 (1,796,037) 3,242,303 5,167,569 1,925,266 2,659,941 3,031,219 371,278 CAPITAL EXPENSES Other Non-Operating Expense - - - - - - - - - Increase In Fixed Assets - Salaries 245,725 216,920 28,805 230,786 90,842 139,944 294,980 127,106 167,874 Increase In Fixed Assets - Benefits 81,637 89,155 (7,518) 76,412 39,678 36,734 97,969 55,165 42,804 Increase In Fixed Assets - Services - 18,288 (18,288) - 31,007 (31,007) - - - Increase In Fixed Assets - Site Improvements - 38,035 (38,035) - - - - - Increase In Fixed Assets - Equipment - - - Increase In Fixed Assets - Construction 9,160,179 4,812,494 4,347,685 3,831,262 871,673 2,959,588 4,390,563 1,482,503 2,908,060 Increase In Fixed Assets - Other - - - 10,918 (10,918) Operating Transfers Out - - - - - - - - - TOTAL CAPITAL EXPENSES 9,487,541 5,174,892 4,312,648 4,138,460 1,033,201 3,105,259 4,783,512 1,675,693 3,107,819 BEGINNING WORKING CAPITAL - January 1, 2016 5,070,000 5,070,000 - 8,600,000 8,600,000 - 11,900,000 11,900,000 - 3,761 2,520,373 2,516,612 7,703,843 12,734,368 5,030,525 9,776,429 13,255,526 3,479,097 NET CHANGE IN WORKING CAPITAL (see Note)(5,066,239) (2,549,627) 2,516,612 (896,157) 4,134,368 5,030,525 (2,123,571) 1,355,526 3,479,097 Total Change in Working Capital (4,618,366) 808,549 5,426,915 (3,393,403) 2,731,789 6,125,192 (183,813) 297,210 481,023 (2,737,714) 1,452,505 4,190,220 ENDING WORKING CAPITAL - December 31, 2016 Note: Working Capital = Current Assets minus Current Liabilities ENTERPRISE FUNDSOPERATING & CAPITAL FUNDS WATER SEWER SEWER METRO STORMCash Basis through December 2016 35 3/21/2017 8:58 AM OPERATING FUND: OPERATING REVENUES Charges For Service Grants Interest Earnings Operating Transfers Rents, Leases, Concessions, & Other TOTAL OPERATING REVENUES OPERATING EXPENSES Salaries & Wages Benefits Supplies Other Service Charges Intergovernmental Services (Less Transfers Out) Transfer Out to Operating Sub-Fund Transfer Out to Other Funds Waste Management Payments Sewer Metro Services Debt Service Principal Debt Service Interest Interfund Loan Repayment Interfund Operating Rentals & Supplies TOTAL OPERATING EXPENSES OPERATING REVENUES LESS EXPENSES BEFORE DEPRECIATION (*) BEGINNING WORKING CAPITAL - January 1, 2016 ENDING WORKING CAPITAL - December 31, 2016 NET CHANGE IN WORKING CAPITAL (see Note) CAPITAL FUND: CAPITAL REVENUES Interest Revenue Grants Contributions Other Non-Operating Revenue Gain (Loss) On Sale Of Fixed Assets Increase In Contributions - System Development Increase In Contributions - Other Increase In Contributions - FAA Proceeds of Debt Activity Transfers In from Operating Sub-Fund Transfer In from Other Funds Other Sources TOTAL CAPITAL REVENUES CAPITAL EXPENSES Other Non-Operating Expense Increase In Fixed Assets - Salaries Increase In Fixed Assets - Benefits Increase In Fixed Assets - Services Increase In Fixed Assets - Site Improvements Increase In Fixed Assets - Equipment Increase In Fixed Assets - Construction Increase In Fixed Assets - Other Operating Transfers Out TOTAL CAPITAL EXPENSES BEGINNING WORKING CAPITAL - January 1, 2016 NET CHANGE IN WORKING CAPITAL (see Note) Total Change in Working Capital ENDING WORKING CAPITAL - December 31, 2016 Note: Working Capital = Current Assets minus Current Liabilities OPERATING & CAPITAL FUNDS Cash Basis through December 2016 Budget YE Actual Variance Budget YE Actual Variance Budget YE Actual Variance Budget YE Actual Variance 434 434 435 435 436 436 501 501 464 464 465 465 466 466 - 13,467,100 14,211,584 744,484 747,400 829,081 81,681 878,000 1,307,631 429,631 - - - 138,990 70,491 (68,499) - - - - - 1,300 15,404 14,104 969 1,707 738 300 1,175 875 1,000 4,187 3,187 300,000 - (300,000) - 400 400 500 2,992 2,492 - 20 20 - 13,607,390 14,297,879 690,489 748,869 833,780 84,911 1,178,300 1,308,826 130,526 1,000 4,187 3,187 406,645 410,807 (4,162) 25,723 27,232 (1,509) 453,837 462,561 (8,723) - - - 206,181 186,374 19,807 10,496 9,157 1,339 258,783 240,612 18,171 215,000 135,320 79,680 37,190 25,621 11,569 2,000 1,523 477 191,300 240,191 (48,891) - - - 1,505,075 1,480,134 24,941 463,050 469,068 (6,018) 151,700 126,296 25,404 3,900 13,771 (9,871) 420,600 362,966 57,634 - - - - - - - - - - - - 150,000 150,000 - - - - - - - - - - - - - - - - - - - 10,855,000 10,838,850 16,150 150,000 166,439 (16,439) - - - 35,693 7,910 27,783 - - - - - - 39,947 49,713 (9,767) - - 104,209 104,196 13 - - - 50,740 50,736 4 - - - 13,534,900 13,408,947 125,953 876,908 881,042 (4,134) 1,106,360 1,120,396 (14,036) 218,900 149,091 69,809 72,490 888,931 816,441 (128,039) (47,262) 80,777 71,940 188,430 116,490 (217,900) (144,903) 72,997 3,477,387 3,477,387 - 316,604 316,604 - 105,646 105,646 - 1,530,589 1,530,589 - 3,549,877 4,366,318 816,441 188,565 269,342 80,777 177,586 294,076 116,490 1,312,689 1,385,685 72,997 72,490 888,931 816,441 (128,039) (47,262) 80,777 71,940 188,430 116,490 (217,900) (144,903) 72,997 3,477,387 888,931 - - 375,646 (81,570) - 1,530,589 (144,903) - 31 1,954 1,923 - 1,174 1,174 14,456 8,092 (6,364) - - - - - - - - - - - - - - - - - - - - - - - - - - - 263,834 169,491 (94,343) - - - - - - - - - 150,000 150,000 - - - - - - - - - - 428,321 329,537 (98,784) - 1,174 1,174 - - - - - - - - - - - - - - - - - - - - - - - - - 12,699 14,541 (1,842) - - 469,911 191,823 278,088 - - - - - - - - - - - 469,911 191,823 278,088 12,699 14,541 (1,842) 200,000 200,000 - 270,000 270,000 - 158,410 337,714 179,304 257,301 256,633 (668) (41,590) 137,714 179,304 (12,699) (13,367) (668) 72,490 888,931 (169,629) 90,452 260,081 59,241 175,063 115,822 (217,900) (144,903) 72,997 ENTERPRISE FUNDS SOLID WASTE AIRPORT CEMETERY INTERNAL SERVICE FUNDS INSURANCE 36 3/21/2017 8:58 AM OPERATING FUND: OPERATING REVENUES Charges For Service Grants Interest Earnings Operating Transfers Rents, Leases, Concessions, & Other TOTAL OPERATING REVENUES OPERATING EXPENSES Salaries & Wages Benefits Supplies Other Service Charges Intergovernmental Services (Less Transfers Out) Transfer Out to Operating Sub-Fund Transfer Out to Other Funds Waste Management Payments Sewer Metro Services Debt Service Principal Debt Service Interest Interfund Loan Repayment Interfund Operating Rentals & Supplies TOTAL OPERATING EXPENSES OPERATING REVENUES LESS EXPENSES BEFORE DEPRECIATION (*) BEGINNING WORKING CAPITAL - January 1, 2016 ENDING WORKING CAPITAL - December 31, 2016 NET CHANGE IN WORKING CAPITAL (see Note) CAPITAL FUND: CAPITAL REVENUES Interest Revenue Grants Contributions Other Non-Operating Revenue Gain (Loss) On Sale Of Fixed Assets Increase In Contributions - System Development Increase In Contributions - Other Increase In Contributions - FAA Proceeds of Debt Activity Transfers In from Operating Sub-Fund Transfer In from Other Funds Other Sources TOTAL CAPITAL REVENUES CAPITAL EXPENSES Other Non-Operating Expense Increase In Fixed Assets - Salaries Increase In Fixed Assets - Benefits Increase In Fixed Assets - Services Increase In Fixed Assets - Site Improvements Increase In Fixed Assets - Equipment Increase In Fixed Assets - Construction Increase In Fixed Assets - Other Operating Transfers Out TOTAL CAPITAL EXPENSES BEGINNING WORKING CAPITAL - January 1, 2016 NET CHANGE IN WORKING CAPITAL (see Note) Total Change in Working Capital ENDING WORKING CAPITAL - December 31, 2016 Note: Working Capital = Current Assets minus Current Liabilities OPERATING & CAPITAL FUNDS Cash Basis through December 2016 Budget YE Actual Variance Budget YE Actual Variance Budget YE Actual Variance Budget YE Actual Variance 503 503 505 505 518 518 550 550 - - 568 568 560 560 743,000 839,491 96,491 3,495,900 3,366,859 (129,041) 5,531,965 5,477,188 (54,777) 3,371,780 3,304,965 (66,815) - - - - - - 100 3,961 3,861 2,500 10,258 7,758 3,088 10,127 7,039 4,048 14,729 10,681 137,950 134,583 (3,367) 203,997 203,997 - 120,000 32,173 (87,827) - - - - 526 526 - 58,608 58,608 863,100 875,624 12,524 3,498,400 3,377,116 (121,284) 5,673,003 5,622,424 (50,579) 3,579,825 3,582,299 2,474 84,590 71,601 12,989 707,569 671,805 35,764 1,711,060 1,654,744 56,317 593,881 566,805 27,076 367,005 181,777 185,228 390,621 354,792 35,829 708,330 672,944 35,387 314,545 283,490 31,056 - - - 128,200 142,875 (14,675) 431,480 434,652 (3,172) 1,341,600 695,099 646,501 402,715 303,111 99,604 2,315,990 1,915,502 400,488 2,737,121 2,439,779 297,342 377,500 349,410 28,090 - - - - - - - - - - - - - - - - - 1,500,000 1,500,000 - 1,000,000 1,000,000 - - - - 890,827 660,413 230,414 - - - 626,392 626,392 - 39,107 39,107 0 - - - - - - - - - 5,033 5,033 (0) - - - - - - - 110,841 110,844 (3) 160,790 160,788 2 212,390 212,652 (262) 854,310 556,490 297,821 4,544,048 3,856,232 687,816 7,248,782 6,862,907 385,875 4,510,449 3,777,987 732,461 8,790 319,134 310,345 (1,045,648) (479,116) 566,532 (1,575,779) (1,240,483) 335,296 (930,624) (195,689) 734,935 778,233 778,233 - 2,410,754 2,410,754 - 2,305,195 2,305,195 - 2,974,119 2,974,119 - 787,022 1,097,367 310,345 1,365,105 1,931,638 566,532 729,416 1,064,712 335,296 2,043,495 2,778,430 734,935 8,790 319,134 310,345 (1,045,648) (479,116) 566,532 (1,575,779) (1,240,483) 335,296 (930,624) (195,689) 734,935 778,233 319,134 - 2,410,754 (479,116) - 3,705,195 (2,640,483) - 6,074,119 (3,251,600) - 412 4,856 4,444 1,652 9,621 7,969 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 1,500,000 1,500,000 - 1,000,000 1,000,000 - 442,150 379,330 (62,820) 1,118,926 1,053,713 (65,213) - - - - - - 1,942,562 1,884,187 (58,375) 2,120,578 2,063,334 (57,243) - - - - 9,740 (9,740) - - - - - - - - - - - - - - - - - - - - 1,579,579 964,610 614,969 2,907,063 2,087,691 819,372 - 723,002 55,241 667,761 - - - - - - - - 1,579,579 964,610 614,969 3,630,065 2,152,672 1,477,393 1,400,000 1,400,000 - 3,100,001 3,100,001 - 1,762,983 2,319,577 556,594 1,590,513 3,010,663 1,420,150 362,983 919,577 556,594 (1,509,488) (89,338) 1,420,150 8,790 319,134 310,345 (1,045,648) (479,116) 566,532 (1,212,796) (320,906) 891,890 (2,440,111) (285,027) 2,155,084 INTERNAL SERVICE FUNDS WORKER'S COMPENSATION FACILITIES INNOVATION & TECHNOLOGY EQUIPMENT RENTAL 37 INNOVATION EQUIPMENT & TECHNOLOGY RENTAL OPERATING REVENUES Charges For Service 14,580,114$ 8,387,647$ -$ 9,523,384$ 14,211,584$ 48,077$ 1,307,631$ -$ 871,663$ -$ -$ -$ Interfund Charges For Service - - - - - - - - - 3,330,400 5,394,652 3,304,965 Sewer Metro Service Revenue - - 16,809,281 - - - - - - - - - Rents, Leases, Concessions, & Other - - - - - 781,003 - - - 36,459 82,536 - TOTAL OPERATING REVENUES 14,580,114$ 8,387,647$ 16,809,281$ 9,523,384$ 14,211,584$ 829,081$ 1,307,631$ -$ 871,663$ 3,366,859$ 5,477,188$ 3,304,965$ OPERATING EXPENSES Administration & Other 4,629,819$ 4,469,797$ -$ 4,280,017$ 1,699,696$ 490,592$ 331,583$ 149,091$ -$ -$ -$ 790,008$ Operations & Maintenance 4,698,735 1,616,978 16,516,635 2,249,471 11,709,252 16,388 788,813 - 556,490 3,195,819 5,362,907 1,317,447 Depreciation & Amortization 3,014,425 2,183,012 - 1,920,663 18,819 454,477 50,578 728,777 1,059,202 TOTAL OPERATING EXPENSES 12,342,980$ 8,269,787$ 16,516,635$ 8,450,151$ 13,427,766$ 961,457$ 1,170,974$ 149,091$ 556,490$ 3,195,819$ 6,091,684$ 3,166,657$ OPERATING INCOME (LOSS)2,237,134$ 117,860$ 292,647$ 1,073,233$ 783,818$ (132,376)$ 136,657$ (149,091)$ 315,174$ 171,040$ (614,496)$ 138,308$ NON-OPERATING REVENUES & EXPENSES Interest Revenue 44,549$ 61,722$ 4,563$ 64,851$ 15,404$ 3,661$ 2,349$ 4,187$ 3,961$ 10,258$ 14,983$ 24,350$ Other Non-Operating Revenue 218,928 72,981 - 223,758 70,891 169,835 20 - - - 526 33,122 Gain (Loss) On Sale Of Fixed Assets - - - 9,500 - - - - - - 25,486 Other Non-Operating Expense (867,085) (284,111) - (372,634) - (7,910) - - - - (5,033) TOTAL NON-OPERATING REVENUES & EXPENSES (603,609)$ (149,408)$ 4,563$ (74,525)$ 86,294$ 165,586$ 2,369$ 4,187$ 3,961$ 10,258$ 15,509$ 77,925$ 1,633,525$ (31,547)$ 297,210$ 998,708$ 870,112$ 33,210$ 139,026$ (144,903)$ 319,134$ 181,298$ (598,987)$ 216,233$ Contributions 2,045,975$ 2,110,375$ -$ 849,033$ -$ -$ -$ -$ -$ -$ Transfers In - 3,000,000 - 2,000,000 - 150,000 - - - - 2,013,914 2,257,710 Transfers Out (88,921) (3,107,430) - (2,227,822) - (150,000) - - - (660,413) (1,500,000) (1,626,392) TOTAL CONTRIBUTIONS & TRANSFERS 1,957,054$ 2,002,945$ -$ 621,210$ -$ -$ -$ -$ -$ (660,413)$ 513,914$ 631,318$ CHANGE IN FUND BALANCE 3,590,579$ 1,971,398$ 297,210$ 1,619,919$ 870,112$ 33,210$ 139,026$ (144,903)$ 319,134$ (479,116)$ (85,074)$ 847,550$ BEGINNING FUND BALANCE - January 1, 2016 70,782,042$ 80,710,561$ 2,358,518$ 59,339,341$ 3,327,270$ 9,453,173$ 1,237,575$ 1,503,588$ 745,240$ 2,127,285$ 4,388,522$ 10,122,258$ ENDING FUND BALANCE - December 31, 2016 74,372,621$ 82,681,959$ 2,655,727$ 60,959,260$ 4,197,382$ 9,486,383$ 1,376,601$ 1,358,685$ 1,064,374$ 1,648,169$ 4,303,448$ 10,969,808$ INCOME (LOSS) BEFORE CONTRIBUTIONS & TRANSFERS The following table provides an analysis of each of the City's Enterprise and Internal Service funds - showing 2016 revenues and expenditures by fund through Period 12 and includes the Fund Balance in the associated Capital Sub-Fund. FUND BALANCE ENTERPRISE FUNDS INTERNAL SERVICE FUNDS WATER SEWER SEWER METRO STORM SOLID WASTE AIRPORT CEMETERY INSURANCE WORKER'S COMPENSATION FACILITIES 38