HomeMy WebLinkAboutQ4 2018 Financial Report
AGENDA BILL APPROVAL FORM
Agenda Subject: 4th Quarter 2018 Financial Report Date: March 20, 2019
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 year to
date through December 2018 status report based on financial data available as of January 23, 2019 for
the period ending December 31, 2018 and sales tax information representing business activity that
occurred through October 2018.
Staff: Coleman
Meeting Date: March 25, 2019 Item Number:
Quarterly Financial Report Through Q4-2018
General Fund Summary
$21.3
$18.1
$13.1
$6.3
$1.0 $2.4
$4.1
$1.5
$42.5
$14.7
$10.5 $9.9
$21.4 $19.3
$13.2
$6.3
$2.6 $2.1
$39.5
$13.4
$8.9 $8.8
$0.9
$4.0
Property TaxesSales TaxesOther TaxesIntergovernmental(Grants, etc.)DevelopmentService FeesCulture &RecreationOther Fees& ChargesOtherRevenuesPersonnelSupplies& ServicesIntergovernmentalOther ExpendituresRevenues Expenditures
$0
$5
$10
$15
$20
$25
$30
$35
$40
$45
Millions2018
Actuals
(Unfavorable)
2018
Actuals
(Favorable)
2018
Budget
General Fund Revenues and Expenditures
(Through December 2018) $67.7
$77.7$69.7 $70.7
Total
Revenues
Total
Expenditures
$0
$20
$40
$60
$80
Millions$1.3 $2.0 $1.5
$2.6
$1.3 $1.6 $2.4
$4.8 $4.1
$28.4
$3.9
$12.8
$4.0
$7.0
$1.2 $1.8 $1.2
$2.6
$1.2 $1.4 $2.1
$4.0 $4.0
$27.1
$3.5
$12.5
$3.8 $4.3
Council& MayorAdministrativeServicesCommunity &Human ServicesMunicipal Court& ProbationHumanResourcesFinanceCity AttorneyCommunityDevelopmentJail - SCOREPolicePublic WorksParks, Arts& RecreationStreetsNon-Departmental$0
$5
$10
$15
$20
$25
$30
Millions2018
Actuals
(Unfavorable)
2018
Actuals
(Favorable)
2018
Budget
General Fund Expenditures by Department
(Through December 2018)
1
Quarterly Financial Report Through Q4-2018 2
General Fund 2017
Summary of Sources and Uses Annual YE YE YE
Budget Budget Actual Actual Amount
Operating Revenues
Property Tax 7 21,281,000$ 21,281,000$ 21,422,752$ 20,837,874$ 141,752$ 0.7 %
Sales Tax 8-9 14,893,500 14,893,500 15,888,667 14,949,407 995,167 6.7 %
Sales Tax - Pierce County Parks 77,250 77,250 104,158 95,750 26,908 34.8 %
Sales Tax - Annexation Credit 1,250,000 1,250,000 1,056,364 2,085,949 (193,636)(15.5)%
Criminal Justice Sales Tax 1,908,300 1,908,300 2,265,557 2,038,296 357,257 18.7 %
Brokered Natural Gas Tax 353,600 353,600 152,561 176,067 (201,039)(56.9)%
City Utilities Tax 10-11 3,991,000 3,991,000 3,750,955 3,890,304 (240,045)(6.0)%
Admissions Tax 317,000 317,000 470,370 422,280 153,370 48.4 %
Electric Tax 11 3,577,800 3,577,800 3,708,104 3,694,954 130,304 3.6 %
Natural Gas Tax 11 1,006,200 1,006,200 1,022,753 1,072,751 16,553 1.6 %
Cable Franchise Fee 12 986,100 986,100 951,973 1,009,432 (34,127)(3.5)%
Cable Utility Tax - New in 2017 13 1,000,000 1,000,000 1,017,825 801,150 17,825 1.8 %
Cable Franchise Fee - Capital 67,200 67,200 62,941 66,428 (4,259)(6.3)%
Telephone Tax 11 1,408,200 1,408,200 1,278,757 1,379,949 (129,443)(9.2)%
Garbage Tax (external)11 - - 136,883 129,831 136,883 N/A %
Leasehold Excise Tax 40,000 40,000 203,350 203,034 163,350 408.4 %
Gambling Excise Tax 303,180 303,180 412,547 324,309 109,367 36.1 %
Taxes sub-total 52,460,330$ 52,460,330$ 53,906,517$ 53,177,765$ 1,446,187$ 2.8 %
Business License Fees 14 223,200$ 223,200$ 352,880$ 163,347$ 129,680$ 58.1 %
Building Permits 15 1,653,750 1,653,750 920,305 1,191,974 (733,445)(44.4)%
Other Licenses & Permits 543,000 543,000 580,369 551,475 37,369 6.9 %
Intergovernmental (Grants, etc.)16 6,269,050 6,269,050 6,321,332 6,104,610 52,282 0.8 %
Charges for Services:17-20
General Government Services 17 61,300 61,300 74,301 72,710 13,001 21.2 %
Public Safety 18 756,000 756,000 1,133,972 887,535 377,972 50.0 %
Development Services Fees 18-19 1,019,100 1,019,100 903,884 906,687 (115,216)(11.3)%
Culture and Recreation 20 2,366,680 2,366,680 2,550,075 2,375,807 183,395 7.7 %
Fines and Penalties 21-22 885,300 885,300 920,187 882,255 34,887 3.9 %
Fees/Charges/Fines sub-total 13,777,380$ 13,777,380$ 13,757,305$ 13,136,398$ (20,075)$ (0.1)%
Interest and Investment Earnings 22 68,000$ 68,000$ 415,348$ 237,532$ 347,348$ 510.8 %
Rents and Leases 22 856,100 856,100 991,469 879,059 135,369 15.8 %
Contributions and Donations 22 53,200 53,200 51,400 47,926 (1,800)(3.4)%
Other Miscellaneous 22-23 236,800 236,800 357,075 308,578 120,275 50.8 %
Transfers In 144,300 144,300 92,117 79,000 (52,183)(36.2)%
Insurance Recoveries - Capital & Operating 105,000 105,000 165,212 134,103 60,212 57.3 %
Other Revenues sub-total 1,463,400$ 1,463,400$ 2,072,622$ 1,686,198$ 609,222$ 41.6 %
Total Operating Revenues 67,701,110$ 67,701,110$ 69,736,443$ 68,000,361$ 2,035,333$ 3.0 %
Operating Expenditures
Council & Mayor 1,332,443$ 1,332,443$ 1,159,695$ 1,136,527$ 172,748$ 13.0 %
Administration 1,963,814 1,963,814 1,767,999 1,434,930 195,815 10.0 %
Community & Human Services 1,488,828 1,488,828 1,190,641 1,076,539 298,187 20.0 %
Municipal Court & Probation 2,644,145 2,644,145 2,575,638 2,465,944 68,507 2.6 %
Human Resources 1,315,663 1,315,663 1,195,959 1,279,436 119,704 9.1 %
Finance 1,565,731 1,565,731 1,435,401 1,433,788 130,330 8.3 %
City Attorney 2,398,550 2,398,550 2,082,324 2,038,930 316,226 13.2 %
Community Development 4,826,325 4,826,325 4,046,469 4,225,865 779,857 16.2 %
Jail - SCORE 4,099,465 4,099,465 3,997,671 3,794,872 101,794 2.5 %
Police 28,354,695 28,354,695 27,105,538 24,947,225 1,249,157 4.4 %
Public Works 3,864,132 3,864,132 3,529,830 2,957,741 334,302 8.7 %
Parks, Arts & Recreation 12,821,406 12,821,406 12,481,642 12,030,393 339,764 2.6 %
Streets 4,039,204 4,039,204 3,769,988 3,677,312 269,216 6.7 %
Non-Departmental 6,983,343 6,983,343 4,343,574 4,327,753 2,639,769 37.8 %
Total Operating Expenditures 77,697,744$ 77,697,744$ 70,682,368$ 66,827,255$ 7,015,376$ 9.0 %
2018 2018 YE Budget vs. Actual
Favorable (Unfavorable)
Percentage
Page
Ref
2
Quarterly Financial Report Through Q4-2018 3
Executive Summary
This Executive Summary provides an overview of the City’s overall financial position for the
fiscal period ending December 31, 2018, reflecting financial data available as of January 23,
2019.
General Fund:
Through December 2018, General Fund revenues totaled $69.7 million compared to a budget of
$67.7 million, and were $2.0 million (3.0%) higher than budget expectations. Some notable
variances to budget in 2018 include:
• Property tax collections in 2018 totaled $21.4 million, which was $142,000 higher than
budget expectations and exceeded 2017 collections by $585,000. [page 7]
• General Fund retail sales tax revenues totaled $15.9 million, exceeding budget by
6.7% or $995,000. Due to the Marketplace Fairness Act (MFA) which became
effective on January 1, 2018, retail sales taxes collected in 2018 included $232,000
from retail sales taxes collected on internet sales. (Note: This is collected as retail
sales tax revenue and is deducted from the amount the City receives for streamlined
sales tax revenue.) Overall, the primary areas of significant increase in retail sales
activity compared to collections in 2017 were in the services, automotive, and retail
trade categories. [pages 8-9]
• The other taxes category performed favorably to budget in 2018, with revenues totaling
$13.2 million compared to a budget of $13.1 million. Leasehold excise tax revenues
collected in 2018 exceeded budget by $163,000 due to a one-time tax receipt for the
Emerald Downs property. Admission taxes collected in 2018 were $48,000 higher
than what was collected in 2017 and gambling excise tax revenues collected in 2018
were $88,000 higher than what was collected in 2017 largely due to new revenues
generated from amusement games at Dave and Busters. These revenues were
somewhat offset by unfavorable variances in City utility tax revenues and brokered
natural gas tax revenues of $240,000 and $201,000 respectively. [pages 10-13]
• Building permit revenue collected in 2018 totaled $920,000, compared to a budget of
$1.7 million, representing $733,000 variance to budget. The number of building
permits issued in 2018 was 535, which represents a 21.3% decline from the number
of permits issued in 2017. [page 15]
• Intergovernmental revenues collected totaled $6.3 million and exceeded budget
expectations by $52,000, or 0.8%. [page 16]
• Public safety revenues collected in 2018 totaled $1.1 million compared to a budget of
$756,000 mainly due to $341,000 in additional contracted police officer extra duty
security services (which are reimbursed by the hiring contractor). [page 18]
• Development services revenues collected in 2018 totaled $904,000 and were
$115,000, or 11.3%, unfavorable to budget. This variance was predominately due to
plan check revenues not meeting budget expectations. [page 18-19]
3
Quarterly Financial Report Through Q4-2018 4
Ending 2018 fund balances will not be finalized until approximately June 2019 pending final
year-end adjustments and certification by the State Auditor’s Office. Once the final ending 2018
fund balances are available, budgeted beginning 2019 fund balances will be reconciled and
adjusted accordingly.
General Fund expenditures in 2018 totaled $70.7 million compared to a budget of $77.7 million,
representing a 9.0% favorable variance to budget. All departments operated within their
allocated budget in 2018. Significant variances include savings in salaries and benefits largely
due to vacancies and savings in professional service contracts and miscellaneous expenditures.
General Fund expenditures in 2018 were $3.9 million, or 5.8% higher than in 2017. Salary and
benefit costs increased by $2.9 million, or 7.9% compared to 2017. This year-over-year
increase was primarily due to an increase in Council Approved FTEs (Full Time Equivalents),
increases for cost of living adjustments (COLAs), and increased costs associated with pensions
and healthcare. In addition, charges for services increased by $0.9 million, or 7.9%, due
primarily to increased costs paid to Valley Communications for 911 services, replacements of
street poles, cabinets and guardrails, as well as the cost of paying Auburn Valley Humane
Society for managing the Pet Licensing Program.
Lastly, payments made to SCORE (South Correctional Entity) for correctional services
increased by $203,000 in 2018.
$ 67.7M
$ 77.7M
$ 69.7M
$ 70.7M
$0 $10 $20 $30 $40 $50 $60 $70 $80
Revenues
Expenditures
$ Millions
General Fund
Revenues vs. Expenditures Through December 2018 2018 Actual
2018 Budget
4
Quarterly Financial Report Through Q4-2018 5
The quarterly reports focus not on the financial position of the City but rather on the budget
status over the period being reported. We look at the adopted budget and the actual activity
against it to see if revenues are tracking and if expenditure budgets are within Council’s
appropriation. What is missing from this report is the actual position of the funds. In this
particular case it is the General Fund we are looking at.
We must always be mindful of the cash position of a given fund. The cash position tells if there
are surplus funds or a shortage of funds. For the general government, we look at the General
Fund (checking account) and the Cumulative Reserve Fund (savings account). From time to
time Council authorizes transfers between these funds. Just like transfers from a savings
account to the checking account and vice versa, therefore we must look at them together.
Over the past several years, there have been increases to the cash position due to levying
banked property tax capacity, increasing utility tax (cable), and a strong development cycle
(2013-2016). All these factors have enabled the City to maintain funding for the services
provided.
This schedule shows a downturn of the cash position at the end of 2018. 2018 development
fees were less than 50% of those collected in 2013 and 2016. 2018 also had the sunset
(6/30/2018) of the annexation sales tax credit revenue. All the banked or excess property tax
has been levied and the growth of this revenue is now limited to 1% + new construction.
2019 will further strain the cash positon with increased public safety costs (contracts with
SCORE, Valley Communications, King County District Court), homeless and human service
needs, and staffing costs (salary and benefits).
We can always look at financial statements and review the health of the fund, but the best way
to measure health is looking at the cash.
Cumulative
Reserve
Year General Fund Fund Total Change Comments
2015 17,940,290$ 8,215,082$ 26,155,372$
2016 19,744,123 8,742,100 28,486,223 2,330,851 Development Fees $1M +
2017 21,765,660 9,804,051 31,569,711 3,083,488 Levied $2M banked capacity (Property Taxes)
2018 20,061,756 10,145,241 30,206,997 (1,362,714) Annexation Sales Tax ended 6/30/2018
Cash Position History as of December 31 (Period 12)
5
Quarterly Financial Report Through Q4-2018 6
Street Funds:
The City’s three street funds are special revenue funds wherein 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 2018, Arterial
Street Fund revenues totaled $3.4 million as compared to collections of $8.4 million in 2017,
while expenditures totaled $4.2 million as compared to expenditures of $9.7 million spent last
year. The Operator’s Union strike began in August and lasted several weeks, delaying the
schedule of many of the City’s projects. This was especially impactful to street projects—some
expenditures anticipated to occur in 2018 will move into 2019 because of this. [pages 26–27]
Local Street Fund revenues of $2.5 million exceeded the annual budget by $617,000, or
32.3%, due to higher than anticipated sales tax revenues from local construction projects. Last
year’s collections totaled $2.8 million. 2018 expenditures through the fourth quarter were $2.7
million as compared with $2.2 million in 2017. [pages 28–29]
Lastly, Arterial Street Preservation Fund revenues totaled $4.2 million through Q4-2018,
which was approximately $312,000 higher than revenues in 2017. Expenditures totaled $4.9
million versus $5.0 million in 2017. Historically, the majority of expenditures in all three street
funds occur during the second half of the year when weather conditions are optimal for
pavement construction. [pages 30–31]
Enterprise Funds:
The City’s enterprise funds account for operations with revenues primarily provided from user
fees, charges or contracts for services.
All City utilities transitioned to a monthly billing cycle starting in January 2019. In order to
achieve standardization in the billing cycles, additional days were added to the January 2019
billing, which brought all customers current through December 31, 2018. This one-time
occurrence increased both the Q4-2018 billing revenue and necessitated that a larger than
usual amount of revenue be accrued back to 2018 from the first billing of 2019, giving the
appearance of lower overall revenue. The numbers below are prior to the accrual; see pages
32–35 for more information.
In 2018 the Water Fund experienced operating income before depreciation of $5.8 million
compared to $5.7 million during the same period last year. The Sewer Fund ended 2018 with
operating income before depreciation of $1.8 million versus $2.2 million in 2017. The
Stormwater Fund ended the third quarter with operating income before depreciation of $2.2
million compared to $2.6 million in 2017. The Solid Waste Fund ended 2018 with operating
income of $206,000 compared to $612,000 in 2017. [pages 33–36]
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 had sufficient revenues to cover year-end expenditures. [page 37]
Investment Portfolio:
The City’s total cash and investments at the end of the Q4-2018 totaled $141.0 million, and
compares to $138.3 million at the end of Q3-2018. [attachment]
6
Quarterly Financial Report Through Q4-2018 7
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 2018 totaled $21.4 million and were $142,000, or 0.7% above
budget expectation. Property tax revenue collected in 2018 exceeded collections in 2017 by
$585,000, or 2.8%. The majority of property taxes 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
$22.0
$24.0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecMillionsProperty Taxes
2018 Budget
2018 YE Actual
2017 Actual
$12.6 $12.9
$14.4 $15.8
$17.2 $17.9
$20.8 $21.4
$0.0
$5.0
$10.0
$15.0
$20.0
$25.0
2011 2012 2013 2014 2015 2016 2017 2018MillionsProperty Tax Revenue
Actuals
7
Quarterly Financial Report Through Q4-2018 8
Sales tax collected in 2018 totaled $18.2 million, of which $15.9 million was distributed to the
General Fund and $2.3 million was distributed to the Local Street Fund (SOS) program as per
current financial practice; this will be discontinued starting in 2019. Total sales tax revenue
distributions to the General Fund in 2018 exceeded budget expectations by $995,000, or 6.7%,
and were $939,000 higher than what was collected in 2017. Of the retail sales taxes collected
in 2018, $232,000 represented new revenues collected on internet sales due to Marketplace
Fairness Act legislation, which was effective January 1, 2018.
$0.0
$2.0
$4.0
$6.0
$8.0
$10.0
$12.0
$14.0
$16.0
$18.0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecMillionsSales & Use Tax
(Net of Revenue from Construction)
2018 Budget
2018 YE Actual
2017 Actual
$12.4
$13.8 $14.5 $14.6 $14.9 $15.9
$0.0
$2.0
$4.0
$6.0
$8.0
$10.0
$12.0
$14.0
$16.0
$18.0
2013 2014 2015 2016 2017 2018MillionsSales and Use Tax
General Fund Only
Actuals
8
Quarterly Financial Report Through Q4-2018 9
The following table breaks out the City’s base sales taxes, excluding Pierce County Parks sales
tax, Criminal Justice sales tax, and Annexation Credit sales tax, by major business sector.
Total sales tax revenue collected in 2018 exceeded prior year collections by $617,000, or 3.5%.
The business sectors showing the largest dollar increase in revenues compared to last year
were the services, automotive, and retail trade industries, while construction declined 12.3%.
Sales tax revenue on construction is transferred to the Local Street Fund (Fund 103) for local
street repair and maintenance. As noted above, this practice will be discontinued starting in
2019. In 2018, the total amount of sales tax on construction revenue collected was $2.3 million,
which was $322,000 less than was collected in 2017, and exceeds the 2018 budget by
$560,000.
2017 2018
Component Group Actual Actual Amount
Construction 2,632,107$ 2,309,617$ (322,490)$ (12.3)%
Manufacturing 677,596 754,285 76,690 11.3 %
Transportation & Warehousing 88,502 120,208 31,706 35.8 %
Wholesale Trade 1,363,083 1,469,017 105,934 7.8 %
Automotive 3,971,531 4,121,791 150,259 3.8 %
Retail Trade 4,871,580 5,040,912 169,332 3.5 %
Services 3,911,740 4,228,822 317,082 8.1 %
Miscellaneous 65,374 153,632 88,258 135.0 %
YE Total 17,581,514$ 18,198,285$ 616,771$ 3.5 %
Comparison of Sales Tax Collections by Group
Through December
Change from 2017
Percentage
$0.0
$0.5
$1.0
$1.5
$2.0
$2.5
$3.0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecMillionsSales Tax on Construction Transfer
2018 Budget
2018 YE Actual
2017 Actual
9
Quarterly Financial Report Through Q4-2018 10
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 2018 totaled $9.9 million and were $86,000, or 0.9% less than budget expectations.
$1.9 $1.8
$2.3 $2.3
$2.6
$2.3
$0.0
$0.5
$1.0
$1.5
$2.0
$2.5
$3.0
$3.5
2013 2014 2015 2016 2017 2018MillionsSales Tax On Construction Revenue
Actuals
$0.0
$2.0
$4.0
$6.0
$8.0
$10.0
$12.0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecMillionsUtility Tax
2018 Budget
2018 YE Actual
2017 Actual
10
Quarterly Financial Report Through Q4-2018 11
Favorable variances in electric and solid waste revenues offset lower collections in City
utility taxes and telephone tax revenues. Note: Whereas previously utility bills were
billed bi-monthly, effective January 2019 utility bills are billed monthly. This transition
required additional days to be added to the Q4-2018 utility billings on a one-time basis
to standardize all billing cycles. Due to this change, a larger than normal proportion of
utility revenue was billed in January 2019 and then accrued back to 2018. This also
impacted utility tax revenue, making collections in Q4-2018 appear lower than normal.
2017 2018 2018
Utility Tax Type YE Actual YE Budget YE Actual Amount Amount
City Interfund Utility Taxes 3,890,304$ 3,991,000$ 3,750,955$ $ (139,350)(3.6)% $ (240,045)(6.0)%
Electric 3,694,954 3,577,800 3,708,104 13,151 0.4 %130,304 3.6 %
Natural Gas 1,072,751 1,006,200 1,022,753 (49,998) (4.7)%16,553 1.6 %
Telephone 1,379,949 1,408,200 1,278,757 (101,193) (7.3)%(129,443) (9.2)%
Solid Waste (external)129,831 0 136,883 7,051 5.4 %136,883 N/A %
YE Total 10,167,789$ 9,983,200$ 9,897,451$ $ (270,338)(2.7)% $ (85,749)(0.9)%
Through December 2018
Utility Tax by Type
2018 vs. 2017 Actual 2018 vs. Budget
Percentage Percentage
$9.5 $10.0 $9.7 $10.0 $10.2 $9.9
$0.0
$2.0
$4.0
$6.0
$8.0
$10.0
$12.0
$14.0
2013 2014 2015 2016 2017 2018MillionsUtility Tax Revenues
Actuals
11
Quarterly Financial Report Through Q4-2018 12
Cable Franchise Fees, which are collected quarterly, totaled $952,000 and were $34,000, or
3.5%, unfavorable to budget.
$0
$100
$200
$300
$400
$500
$600
$700
$800
$900
$1,000
$1,100
1st Quarter 2nd Quarter 3rd Quarter 4th QuarterThousandsCable Franchise Fee
2018 Budget
2018 YE Actual
2017 Actual
$0.9 $0.9 $0.9 $1.0 $1.0
$1.0
$0.0
$0.2
$0.4
$0.6
$0.8
$1.0
$1.2
$1.4
2013 2014 2015 2016 2017 2018MillionsCable Franchise Fee
Actuals
12
Quarterly Financial Report Through Q4-2018 13
Cable Utility Tax. In September 2016, City Council increased the Cable Utility Tax from 1.0%
to 6.0%, with the entirety of the new tax amount benefitting the General Fund. This tax became
effective on January 1, 2017 and is collected quarterly. Total cable utility tax revenue collected
in 2018 was $1,018,000 and exceeded budget expectations by $18,000, or 1.8%.
$0
$100
$200
$300
$400
$500
$600
$700
$800
$900
$1,000
$1,100
1st Quarter 2nd Quarter 3rd Quarter 4th QuarterThousandsCable Utility Tax
(New in 2017)
2018 Budget
2018 YE Actual
2017 Actual
13
Quarterly Financial Report Through Q4-2018 14
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.
Business license revenues collected in 2018 totaled $353,000 as compared to $163,000
collected in 2017. The primary reason for this year-over-year increase in revenues is the timing
of when business license renewal notices were sent to businesses and paid. The majority of
businesses paid their 2018 business licenses in early 2018 and paid their 2019 business
licenses in December 2018. In addition, due to compliance efforts initiated by the City, there
has been an increase in the number of licenses sold.
$0
$50
$100
$150
$200
$250
$300
$350
$400
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecThousandsBusiness Licenses
2018 Budget
2018 YE Actual
2017 Actual
$236
$171
$282
$225
$163
$353
$0
$50
$100
$150
$200
$250
$300
$350
$400
2013 2014 2015 2016 2017 2018ThousandsBusiness License Revenues
Actuals
14
Quarterly Financial Report Through Q4-2018 15
Building permit revenues collected in 2018 totaled $920,000 as compared to 2017 collections of
$1.2 million. This year-over-year decline is a result of a decrease in the number of building
permits issued. A total of 535 building permits were sold in 2018 as compared to 680 sold in
2017, representing a 21.3% reduction. Of the permit revenues collected in 2018, 57% was
attributable to commercial projects and the remaining 43% was predominately single family
housing permits.
Major projects contributing to building permit revenues in 2018 include permits issued for the
Hudson Distribution Center, over 30 single family homes in the Wyncrest housing development,
the Olympic Middle School Reconstruction Project, multiple projects at Boeing, and construction
of The Auburn Apartments.
$0.0
$0.2
$0.4
$0.6
$0.8
$1.0
$1.2
$1.4
$1.6
$1.8
$2.0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecMillionsBuilding Permits
2018 Budget
2018 YE Actual
2017 Actual
$2.1
$1.5
$1.2
$2.0
$1.2
$0.9
$0.0
$0.5
$1.0
$1.5
$2.0
$2.5
2013 2014 2015 2016 2017 2018MillionsBuilding Permits
Actuals
15
Quarterly Financial Report Through Q4-2018 16
Intergovernmental revenues include grants (direct and indirect federal, state and local),
compact revenue from the Muckleshoot Indian Tribe (MIT), intergovernmental service revenues,
and state shared revenues. Collections in 2018 totaled $6.3 million and were $52,000, or 0.8%,
favorable to budget.
The favorability to budget was mainly seen in revenues collected from Muckleshoot for
reimbursement of services provided to the casino, as well as increases in marijuana excise tax
revenues received from the state. These favorable variances to budget were somewhat offset
by lower than budgeted collections from streamlined sales tax revenues, as this revenue was
reduced by $232,000 due to the Marketplace Fairness Act. The Marketplace Fairness Act
(MFA), which was effective January 1, 2018, is intended to capture the retail sales tax lost on
internet sales. MFA revenues are collected as retail sales tax revenues, which then reduces the
amount the City receives in streamlined sales tax revenues. In addition, grant revenues
collected were unfavorable to budget by $280,000 through December 2018 – although this will
be largely offset by $206,000 that will be collected in 2019 for 2018 activity.
2017 2018 2018
Revenue YE Actual YE Budget YE Actual Amount Amount
Federal Grants 241,952$ 506,850$ 344,731$ $ 102,780 42.5 % $(162,119)(32.0)%
State Grants 189,238 244,000 191,270 2,032 1.1 %(52,730) (21.6)%
Interlocal Grants 96,322 217,600 152,205 55,882 0.0 %(65,395) (30.1)%
Muckleshoot Casino Services 855,302 650,000 1,035,459 180,156 21.1 %385,459 59.3 %
State Shared Revenues:
Streamlined Sales Tax 1,908,971 1,888,600 1,699,909 (209,063) (11.0)%(188,691) (10.0)%
Motor Vehicle Fuel Tax 1,153,061 1,287,500 1,191,433 38,372 3.3 %(96,067) (7.5)%
Criminal Justice - High Crime 391,027 192,000 218,832 (172,195) (44.0)%26,832 14.0 %
Criminal Justice - Population 21,787 25,000 22,896 1,109 5.1 %(2,104) (8.4)%
Criminal Justice - Special Prog.79,077 82,500 82,756 3,679 4.7 %256 0.3 %
Marijuana Revenues 56,069 65,000 236,951 180,882 322.6 %171,951 264.5 %
State DUI 11,678 12,000 11,673 (6)(0.1)%(327) (2.7)%
Fire Insurance Tax 78,078 75,000 79,798 1,720 2.2 %4,798 6.4 %
Liquor Excise 371,440 375,000 399,164 27,725 7.5 %24,164 6.4 %
Liquor Profit 650,607 648,000 654,256 3,649 0.6 %6,256 1.0 %
Total State Shared:4,721,796 4,650,600 4,597,667 (124,129)(2.6)%(52,933) (1.1)%
YE Total 6,104,610$ 6,269,050$ 6,321,332$ 216,722$ 3.6 %52,282$ 0.8 %
Through December 2018
Intergovernmental Revenues (Grants, Entitlements & Services)
2018 vs. 2017 Actual 2018 vs. Budget
% Change % Change
16
Quarterly Financial Report Through Q4-2018 17
Charges for Services consist of general governmental service charges, public safety charges,
development service fees, and cultural & recreation fees. Total charges for services collected in
2018 totaled $4.7 million, which is $419,000 higher than revenues collected in 2017 and
$459,000, or 10.9%, favorable to budget in 2018. While development services revenues in
2018 were $115,000, or 11.3%, unfavorable to budget due to plan check revenues having
declined year-over-year, this was more than offset by increased revenues in public safety and
culture and recreation revenues as explained below.
$4.8 $5.1 $5.3 $5.7 $6.1 $6.3
$0
$1
$2
$3
$4
$5
$6
$7
$8
2013 2014 2015 2016 2017 2018MillionsIntergovernmental Revenues
(Grants, Entitlements & Services)
Actuals
2017 2018 2018
Revenue YTD Actual YTD Budget YTD Actual Amount Amount
General Government 72,710$ 61,300$ 74,301$ $ 1,591 2.2 % $ 13,001 21.2 %
Public Safety 887,535 756,000 1,133,972 246,438 27.8 %377,972 50.0 %
Development Services 906,687 1,019,100 903,884 (2,802) (0.3)%(115,216) (11.3)%
Culture & Recreation 2,375,807 2,366,680 2,550,075 174,268 7.3 %183,395 7.7 %
YE Total 4,242,738$ 4,203,080$ 4,662,233$ 419,495$ 9.9 % $ 459,153 10.9 %
Through December 2018
Charges for Services by Type
2018 vs. 2017 Actual 2018 vs. Budget
Percentage Percentage
17
Quarterly Financial Report Through Q4-2018 18
General governmental charges for service collected in 2018 totaled $74,000 compared to a
budget of $61,000. The favorability to budget was mostly seen in passport services.
Public safety revenues consist of revenues received for police officer extra duty security
services – whereby officers are contracted for and reimbursement is made by the hiring agency.
This also includes reimbursements from the Muckleshoot Indian Tribe (MIT) for a full-time
dedicated police officer and associated expenditures as well as monies collected from the
Auburn School District and the Criminal Justice Training Commission (CJTC) for services
rendered. Public safety revenues collected in 2018 totaled $1.1 million and compare to a
budget of $756,000. The majority of the favorability seen in this revenue source is due to extra
duty overtime reimbursements exceeding budget expectations as a result of increased requests
for police officer security services.
Development services fee collections, which primarily consist of plan check fees, totaled
$904,000 and ended the year $115,000, or 11.3%, under budget expectations. Total plan check
revenues collected in 2018 totaled $488,000 as compared to $664,000 collected in 2017; this
represents a 26.6% year-over-year decline in revenues. Plan check revenues collected in 2018
were from numerous commercial and residential projects including projects at Boeing, the Dick
Scobee Elementary School Replacement Project, The Auburn Apartments, the Wyndham Hotel
and single-family houses in the Hastings housing development.
$3.3
$3.9 $4.3 $4.1 $4.2
$4.7
$0.0
$1.0
$2.0
$3.0
$4.0
$5.0
$6.0
2013 2014 2015 2016 2017 2018MillionsCharges for Services
Actuals
18
Quarterly Financial Report Through Q4-2018 19
$0.0
$0.2
$0.4
$0.6
$0.8
$1.0
$1.2
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecMillionsDevelopment Service Fees
2018 Budget
2018 YE Actual
2017 Actual
$1.1 $1.1
$1.4
$1.0
$0.9 $0.9
$0.0
$0.2
$0.4
$0.6
$0.8
$1.0
$1.2
$1.4
$1.6
2013 2014 2015 2016 2017 2018MillionsDevelopment Service Fees
Actuals
19
Quarterly Financial Report Through Q4-2018 20
Culture and recreation revenues collected in 2018 totaled $2.6 million, and exceeded budget by
$183,000, or 7.7%. Collections in 2018 increased by $174,000, or 7.3%, compared to
collections in 2017, which was primarily due to an increase in revenues collected for summer
camps, green fees and Pro-Shop sales at the Auburn Golf Course, and Special Events revenue
due to new sponsorship revenue collected for the annual Veteran’s Day Parade.
$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
2018 Budget
2018 YE Actual
2017 Actual
$2.1 $2.2 $2.3 $2.3 $2.4 $2.6
$0.0
$0.5
$1.0
$1.5
$2.0
$2.5
$3.0
2013 2014 2015 2016 2017 2018MillionsCulture & Recreation Revenues
Actuals
20
Quarterly Financial Report Through Q4-2018 21
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 2018 totaled $920,000, compared to a budget
of $885,000. As seen in the table below, civil penalty revenues collected in 2018 were $69,000
higher than 2017 collections. This year-over-year increase was due to revenues collected for
code compliance penalties, which are unbudgeted. Code compliance penalties are revenues
collected from banks on vacant bank-owned properties that are neglected and in non-
compliance with City code. Non-court fines and penalties ended the year under budget
expectations by $34,000, primarily due to false alarm fines ending the year under budget
expectations.
2017 2018 2018
Month YE Actual YE Budget YE Actual Amount Amount
Civil Penalties 28,346$ 12,000$ 97,242$ $ 68,896 243.1 % $ 85,242 710.4 %
Civil Infraction Penalties 457,818 472,600 463,432 5,614 1.2 %(9,168) (1.9)%
Redflex Photo Enforcement 10,773 0 7,335 (3,438) (31.9)%7,335 N/A %
Parking Infractions 148,260 146,800 129,752 (18,508) (12.5)%(17,048) (11.6)%
Criminal Traffic Misdemeanor 73,578 51,300 52,090 (21,487) (29.2)%790 1.5 %
Criminal Non-Traffic Fines 31,077 44,300 50,375 19,298 62.1 %6,075 13.7 %
Criminal Costs 46,394 42,800 38,135 (8,259) (17.8)%(4,665) (10.9)%
Non-Court Fines & Penalties 86,009 115,500 81,825 (4,184) (4.9)%(33,675) (29.2)%
YE Total 882,255$ 885,300$ 920,187$ $ 37,932 4.3 % $ 34,887 3.9 %
Through December 2018
Fines & Penalties by Type
2018 vs. 2017 Actual 2018 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
2018 Budget
2018 YE Actual
2017 Actual
21
Quarterly Financial Report Through Q4-2018 22
Miscellaneous revenues consist of investment earnings, income from facility rentals,
contributions & donations, and other income including the quarterly purchasing card (P-card)
rebate monies. Revenues collected in this category in 2018 totaled $1.8 million and exceeded
budget expectations by $601,000. The majority of the increase in revenues was seen in interest
and investments as well as the rents and leases category.
Interest and investments revenues collected in 2018 exceeded budget expectations by
$347,000, and were $178,000 more than what was collected in 2017. This year-over-year
increase in investment revenue is primarily due to the increase in the State Investment Pool
interest rate.
Rents and lease revenue collected in 2018 totaled $991,000 and was $112,000 higher than
2017 collections. This year-over-year increase was primarily related to facility rental revenues,
miscellaneous parks unearned revenue (deposits), and golf cart rental revenues. In 2018, the
facility rental revenues increased $43,000 compared to revenues collected in 2017, which were
primarily due to greater rental revenue generated at the Auburn Community and Events Center
and at Game Farm Wilderness Campground. Miscellaneous parks unearned revenue (facility
deposits) and golf cart rental revenues increased $35,000 and $31,000 respectively, over
revenues collected in 2017.
$1.4
$1.2
$0.9 $0.9 $0.9 $0.9
$0.0
$0.2
$0.4
$0.6
$0.8
$1.0
$1.2
$1.4
$1.6
$1.8
$2.0
2013 2014 2015 2016 2017 2018MillionsFines & Penalties
Actuals
2017 2018 2018
Month YE Actual YE Budget YE Actual Amount Amount
Interest & Investments 237,532$ 68,000$ 415,348$ 177,816$ 74.9 %347,348$ 510.8 %
Rents & Leases 879,059 856,100 991,469 112,410 12.8 %135,369 15.8 %
Contributions & Donations 47,926 53,200 51,400 3,474 7.2 %(1,800) (3.4)%
Other Miscellaneous Revenue 308,578 236,800 357,075 48,497 15.7 %120,275 50.8 %
YE Total 1,473,095$ 1,214,100$ 1,815,292$ 342,197$ 23.2 %601,192$ 49.5 %
Miscellaneous Revenues by Type
Through December 2018
2018 vs. 2017 2018 vs. Budget
Percentage Percentage
22
Quarterly Financial Report Through Q4-2018 23
Lastly, other miscellaneous revenues exceeded budget expectations by $120,000 mainly due to
revenues collected for code compliance property abatements and sales of unclaimed property.
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 2018 totaled
$3.8 million, exceeding budget expectations by $1.4 million and exceeding prior year collections
by $236,000, or 6.6%. Real estate sales in 2018 represent the sale of both commercial
properties and single-family residences. Commercial sales in 2018 included the sale of several
multi-family properties, the sale of two hotels, commercial and warehousing space, offices,
manufacturing businesses and vacant land.
$0.7
$1.0 $1.0
$1.2
$1.5
$1.8
$0.0
$0.2
$0.4
$0.6
$0.8
$1.0
$1.2
$1.4
$1.6
$1.8
$2.0
2013 2014 2015 2016 2017 2018MillionsMiscellaneous Revenues
Actuals
2017 2018 2018
Month Actual Budget Actual Amount Amount
Jan 224,044$ 200,800$ 240,414$ 16,371$ 7.3 %39,614$ 19.7 %
Feb 249,683 200,800 200,783 (48,899) (19.6)%(17) (0.0)%
Mar 326,044 200,800 255,218 (70,826) (21.7)%54,418 27.1 %
Apr 234,480 200,800 362,999 128,519 54.8 %162,199 80.8 %
May 299,251 200,800 427,054 127,803 42.7 %226,254 112.7 %
Jun 353,807 200,800 371,816 18,009 5.1 %171,016 85.2 %
Jul 330,707 200,800 342,006 11,299 3.4 %141,206 70.3 %
Aug 325,936 200,800 373,889 47,954 14.7 %173,089 86.2 %
Sep 309,422 200,800 387,673 78,251 25.3 %186,873 93.1 %
Oct 286,675 200,800 285,967 (708) (0.2)%85,167 42.4 %
Nov 289,045 200,800 272,195 (16,850) (5.8)%71,395 35.6 %
Dec 325,309 201,200 270,161 (55,149) (17.0)%68,961 34.3 %
YE Total 3,554,404$ 2,410,000$ 3,790,176$ 235,772$ 6.6 %1,380,176$ 57.3 %
Real Estate Excise Tax Revenues
December 2018
Percentage
2018 vs. 2017 2018 vs. Budget
Percentage
23
Quarterly Financial Report Through Q4-2018 24
$0.0
$0.5
$1.0
$1.5
$2.0
$2.5
$3.0
$3.5
$4.0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecMillionsReal Estate Excise Tax
2018 Budget
2018 YE Actual
2017 Actual
$2.2 $2.5
$4.6
$4.3
$3.6 $3.8
$0.0
$0.5
$1.0
$1.5
$2.0
$2.5
$3.0
$3.5
$4.0
$4.5
$5.0
2013 2014 2015 2016 2017 2018MillionsReal Estate Excise Tax Revenues
Actuals
24
Quarterly Financial Report Through Q4-2018 25
Pet Licensing
In 2018, 4,564 pet licenses were sold, resulting in $118,660 in revenue. In 2017, 4,378 licenses
were sold, resulting in $114,265 in revenue. As of March 2018, pet licensing services are
provided by the Auburn Valley Humane Society; previously, these services were provided by
PetData, Inc.
0
500
1,000
1,500
2,000
2,500
$0
$5
$10
$15
$20
$25
JanFebMarAprMayJunJulAugSepOctNovDecNumber of Licenses IssuedLicense Revenue( thousands )Pet Licensing Revenues vs Licenses Sold
2018 vs 2017
2017 License Revenue
2018 License Revenue
2017 Licenses Issued
2018 Licenses Issued
0
1,000
2,000
3,000
4,000
5,000
6,000
$0
$20
$40
$60
$80
$100
$120
$140
JanFebMarAprMayJunJulAugSepOctNovDecNumber of Licenses IssuedLicense Revenue( thousands )Cumulative Pet Licensing Revenue & Licenses Issued
2018 vs 2017
2018 License Revenue
2018 Licenses Issued
2017 Licenses Issued
25
Quarterly Financial Report Through Q4-2018 26
Street Funds
This section provides a financial overview of the City’s three street funds for the quarter ending
December 31, 2018. 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).
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. As of December 31, 2018 there were 25 separate street
projects budgeted in this fund.
In 2018, revenues collected totaled $3.4 million as compared with collections of $8.4 million in
2017. Total expenditures in 2018 were $4.2 million as compared to $9.7 million expended in
2017. Variances in revenues and expenditures are largely due to the timing of capital
expenditures and any subsequent reimbursement via grants and/or operating transfers.
Expenditure timing is generally determined by the current phase of each individual capital
project; expenditures tend to increase as projects move from design phase into construction.
Additionally, the Operator’s Union strike impacted several projects in 2018 and delayed their
anticipated expenditures and reimbursement revenue.
Fund 102 - Arterial Street 2017
Summary of Sources and Uses Annual YE YE YE
Report Period: December 2018 Budget Budget Actual Actual Amount
Revenues
Federal Grants 2,247,600$ 2,247,600$ 1,307,081$ 2,991,037$ (940,519)$ (41.8)%
State Grants 176,500 176,500 180,627 2,339,312 4,127 2.3 %
Motor Vehicle Fuel and Multimodal Taxes 585,000 585,000 641,109 590,141 56,109 9.6 %
Developer Contributions - - - 369,382 -
Miscellaneous Revenue 466,200 466,200 545,707 - 79,507 17.1 %
Operating Transfer In 1,833,417 1,833,417 716,050 2,092,291 (1,117,367) (60.9)%
Investment Income 2,600 2,600 32,750 11,173 30,150 1159.6 %
Total Revenues 5,311,317$ 5,311,317$ 3,423,325$ 8,393,335$ (1,887,992)$ (35.5)%
Expenditures
Salary and Benefits 551,000$ 551,000$ 360,370$ 618,410$ 190,630$ 34.6 %
Capital Outlay 5,408,300 5,408,300 3,184,052 8,452,526 2,224,248 41.1 %
Subtotal - Capital Project Expenditures 5,959,300 5,959,300 3,544,422 9,070,936 2,414,878 40.5 %
Services and Charges 405,200 405,200 363,312 329,980 41,888 10.3 %
Interfund Payments for Services 78,859 78,859 78,864 76,680 (5) (0.0)%
Debt Service Principal and Interest 208,818 208,818 208,817 209,511 1 0.0 %
Operating Transfer Out 95,615 95,615 25,615 7,015 70,000 73.2
Total Expenditures 6,747,792$ 6,747,792$ 4,221,030$ 9,694,122$ 2,526,762$ 37.4 %
Net Change in Fund Balance (1,436,475)$ (1,436,475)$ (797,705)$ (1,300,786)$ 638,770$ (44.5)%
Beg. Fund Balance, January 2018 2,584,136$
Net Change in Fund Balance, December 2018 (797,705)
Ending Fund Balance, December 2018 1,786,431$
2018 Budgeted Ending Fund Balance 1,147,661$
2018 2018 YE Budget vs. Actual
Favorable (Unfavorable)
Percentage
26
Quarterly Financial Report Through Q4-2018 27
This table presents the status of the projects with the most significant budget impact on the
fund:
Notes:
• Several street projects were delayed by the Operator’s Union strike and the lack of natural gas during the 3rd
and 4th quarters of 2018, which will move some expenditures into 2019.
$0.0
$1.0
$2.0
$3.0
$4.0
$5.0
$6.0
$7.0
$8.0
$9.0
$10.0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecMillionsFund 102 -Capital Project Expenditures
2018 YE Budget
2018 YE Actual
2017 YE Actual
2018 YE Actual:
$3.5M
2018 Annual Budget:
$6.0M
2017 YE Actual:
$9.1M
Name Annual Budget YE Actual Remaining
22nd St NE & I St NE Intersection $1.1M $1.0M $0.1M
AWS Corridor Safety Improvements $0.8M $0.7M $0.2M
A St SE & 37th St SE $0.8M $0.6M $0.2M
All Other Projects (21 Others Budgeted)$3.2M $1.3M $1.9M
Total $6.0M $3.5M $2.4M
*Components may not sum to total due to rounding.
Fund 102 - Arterial Street
Capital Projects Status *
27
Quarterly Financial Report Through Q4-2018 28
Fund 103 – Local Street Fund
The Local Street Fund is a special revenue fund that is currently funded from sales taxes on
construction, and used for local street repair. In 2018, revenues in this fund totaled $2.5 million,
exceeding budget expectations by $617,000 due to higher than anticipated sales tax revenues
from local construction projects. This compares to collections of $2.8 million in 2017. Total
expenditures in 2018 were $2.7 million and compare to expenditures of $2.2 million in 2017.
Historically, well over half of this fund’s annual expenditures occur in the final four months of
each year due to the weather sensitivity of pavement construction (this work needs to be done
primarily in the summer and early fall). Highlighted in the table below and shown in the following
graph are the fund’s total expenditures related to capital projects.
Fund 103 - Local Street Fund 2017
Summary of Sources and Uses Annual YE YE YE
Report Period: December 2018 Budget Budget Actual Actual Amount
Revenues
Sales Tax on Construction 1,750,000$ 1,750,000$ 2,309,617$ 2,632,107$ 559,617$ 32.0 %
Operating Transfer In 150,000 150,000 150,000$ 150,000 - 0.0 %
Interest Earnings 9,100 9,100 65,988$ 32,475 56,888 625.1 %
Total Revenues 1,909,100$ 1,909,100$ 2,525,605$ 2,814,582$ 616,505$ 32.3 %
Expenditures
Salary and Benefits 148,817$ 148,817$ 124,191$ 124,325$ 24,626$ 16.5 %
Capital Project Expenditures 3,429,298 3,429,298 2,510,696 2,050,006 918,602 26.8 %
Services and Charges 700 700 2,592 23,703 (1,892) (270.3)%
Interfund Payments for Services 12,239 12,239 12,240 11,916 (1) (0.0)%
Operating Transfer Out 516 516 317 5,825 199 38.6
Total Expenditures 3,591,570$ 3,591,570$ 2,650,036$ 2,215,775$ 941,534$ 26.2 %
Net Change in Fund Balance (1,682,470)$ (1,682,470)$ (124,431)$ 598,807$ 1,558,039$ (92.6)%
Beg. Fund Balance, January 2018 2,943,350$
Net Change in Fund Balance, December 2018 (124,431)
Ending Fund Balance, December 2018 2,818,919$
2018 Budgeted Ending Fund Balance 1,260,880$
2018 2018 YE Budget vs. Actual
Favorable (Unfavorable)
Percentage
28
Quarterly Financial Report Through Q4-2018 29
This table presents the status of the projects with the most significant budget impact on the
fund:
Notes:
• Several projects were impacted by the Operator’s Union strike and the lack of natural gas in the region,
which impacted progress on these projects in the 3rd and 4th quarters of 2018.
$0.0
$0.5
$1.0
$1.5
$2.0
$2.5
$3.0
$3.5
$4.0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecMillionsFund 103 -Capital Project Expenditures
2018 YE Budget
2018 YE Actual
2017 YE Actual
2018 Annual
Budget :
$3.4M
2017 YE Actual:
$2.1M
2018 YE Actual:
$2.5M
Name Annual Budget YE Actual Remaining
2018 Local Street Pavement Reconstruction $1.8M $1.5M $0.3M
2018 Citywide Pavement Patching & Overlay $0.9M $0.4M $0.5M
2017 Local Street Reconstruction & Preservation $0.7M $0.5M $0.2M
All Other Projects (1 Other Budgeted)$0.1M $0.1M $0.0M
Total $3.4M $2.5M $0.9M
*Components may not sum to total due to rounding.
Fund 103 - Local Street
Capital Projects Status*
29
Quarterly Financial Report Through Q4-2018 30
Fund 105 – Arterial Street Preservation Fund
The Arterial Street Preservation Fund is a special revenue fund that 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. Major projects budgeted within the Arterial Street
Preservation Fund in 2018 include 15th Street NE/NW Preservation, South 277th Street
Preservation, and Citywide Pavement Patching and Overlay. Through Q4-2018, revenues
totaled $4.2 million, approximately $312,000 higher than the same period last year.
Total expenditures in 2018 were $4.9 million as compared to $5.0 million in 2017. Historically,
the majority of this fund’s expenditures occur in the second half of each year due to the weather
sensitivity of pavement construction (this work needs to be done primarily in the summer and
early fall). Highlighted in the table below and shown in the following graph are the fund’s total
expenditures related to capital projects.
Fund 105 - Arterial Street Preservation 2017
Summary of Sources and Uses Annual YE YE YE
Report Period: December 2018 Budget Budget Actual Actual Amount
Revenues
City Utility Tax 700,000$ 700,000$ 625,159$ 648,384$ (74,841)$ (10.7)%
Electric Utility Tax 715,600 715,600 741,621 738,991 26,021 3.6 %
Natural Gas Utility Tax 201,200 201,200 204,551 214,550 3,351 1.7 %
Cable TV Tax 197,200 197,200 203,565 211,438 6,365 3.2 %
Telephone Utility Tax 281,600 281,600 243,790 275,990 (37,810) (13.4)%
Garbage Utility Tax (External Haulers)- - 22,443 21,639 22,443
Grants 1,511,840 1,511,840 891,451 1,550,008 (620,389) (41.0)%
Operating Transfer In 2,212,400 2,212,400 1,221,453 194,915 (990,947) (44.8)%
Interest Earnings 4,900 4,900 39,029 25,483 34,129 696.5 %
Total Revenues 5,824,740$ 5,824,740$ 4,193,062$ 3,881,397$ (1,631,678)$ (28.0)%
Expenditures
Salary and Benefits 225,000$ 225,000$ 387,723$ 391,456$ (162,723)$ (72.3)%
Capital Outlay 6,582,840 6,582,840 4,506,355 4,617,054 2,076,485 31.5 %
Subtotal - Capital Project Expenditures 6,807,840 6,807,840 4,894,078 5,008,510 1,913,762 28.1 %
Supplies - - - - -
Services and Charges 150,000 150,000 - - 150,000 100.0
Operating Transfer Out 46,100 46,100 - 14,389 46,100 100.0
Total Expenditures 7,003,940$ 7,003,940$ 4,894,078$ 5,022,898$ 2,109,862$ 30.1 %
Net Change in Fund Balance (1,179,200)$ (1,179,200)$ (701,016)$ (1,141,501)$ 478,184$ (40.6)%
Beg. Fund Balance, January 2018 2,039,837$
Net Change in Fund Balance, December 2018 (701,016)
Ending Fund Balance, December 2018 1,338,821$
2018 Budgeted Ending Fund Balance 860,637$
2018 2018 YE Budget vs. Actual
Favorable (Unfavorable)
Percentage
30
Quarterly Financial Report Through Q4-2018 31
This table presents the status of the projects with the most significant impacts on the fund:
Notes:
• Several projects were impacted by the Operator’s Union strike and the lack of natural gas in the region,
which impacted progress on these projects in the 3rd and 4th quarters of 2018.
$0.0
$1.0
$2.0
$3.0
$4.0
$5.0
$6.0
$7.0
$8.0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecMillionsFund 105 -Capital Project Expenditures
2018 YE Budget
2018 YE Actual
2017 YE Actual
2018 Annual
Budget:
$6.8M
2017 YE Actual:
$5.0M
2018 YE Actual:
$4.9M
Name Annual Budget YE Actual Remaining
15th St NE/NW Preservation $2.7M $2.5M $0.2M
S 277th Street Preservation $1.4M $0.8M $0.5M
2018 Citywide Pavement and Patching Overlay $1.7M $0.9M $0.9M
All Other Projects (4 Others Budgeted)$1.0M $0.6M $0.3M
Total $6.8M $4.9M $1.9M
*Components may not sum to total due to rounding.
Capital Projects Status*
Fund 105 - Arterial Street Preservation
31
Quarterly Financial Report Through Q4-2018 32
Fund 124 – Mitigation Fees
The Mitigation Fees Fund is a special revenue fund funded from revenues from fees for new
development that are assessed at the time applications are received for development activity.
These funds are used to address costs associated with City growth.
The fund houses two types of revenues: mitigation fees and impact fees. Mitigation fees are
variable charges collected as a result of State Environmental Policy Act (SEPA) reviews and the
City’s determination that a project must pay additional fees to compensate for a unique effect
that it has on the community. Impact fees are set charges collected automatically for a variety of
projects. These fees are adopted annually by the City Council based on projects anticipated in
the Capital Facilities plan over the next six years.
In 2018, revenues were 27.4% below budget expectations. This variance is largely due to a
decrease in single-family housing development, which is the source of parks impact fees and a
significant source of transportation impact fees. Additionally, the remaining balance of the
budgeted transfer-in of $400,000 from the Capital Improvement Projects fund will be carried
forward to 2019. This transfer is to pay for traffic impact fees associated with two multifamily
development proposals: Auburn Apartments and Auburn Senior Living. Expenditures were also
below budget due to the timing of capital projects funded by these revenues.
Fund 124 - Mitigation Fees
Summary of Sources and Uses
Report Period Through:Ending Ending
December 2018 Fund Balance Fund Balance
Transportation Impact Fees 800,000$ 1,498,517$ 4,517,955$ 457,831$ 598,350$ 5,075,950$
Transportation Migitation Fees - 188,800 45,505 - 117,700 116,605
Fire Impact Fees 100,000 50,000 136,373 192,135 50,000 228,508
Fire Mitigation Fees - - 81 - - 81
Parks Impact Fees 600,000 1,177,000 4,753,136 390,250 210,447 5,509,939
Parks Mitigation Fees - - 335,302 - - 335,302
School Impact Admin Fees 12,000 - 68,115 9,369 - 65,484
Wetland Mitigation Fees - 31,600 38,061 - - 69,661
Interest and Investment Income 8,200 - 8,200 211,060 - 211,060
Fees in Lieu of Improvements - 100,000 23,313 - - 123,313
Operating Transfers-In 400,000 - 400,000 133,800 - 133,800
Total 1,920,200$ 3,045,917$ 10,326,041$ 1,394,445$ 976,498$ 11,869,702$
Beginning Fund Balance, January 2018 11,451,755$
Net Change in Fund Balance, December 2018 417,947
Ending Fund Balance, December 2018 11,869,702$
2018 Budgeted Ending Fund Balance 10,326,041$
YE ActualsBUDGET
Revenues ExpendituresRevenuesExpenditures
32
Quarterly Financial Report Through Q4-2018 33
Enterprise Funds
Detailed income and expense statements for Enterprise and Internal Service funds can be
found in an attachment at the end of this report. The attachment provides 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.
Starting in January 2019, all City utilities transitioned to a monthly billing schedule. In order to
facilitate this change, utility billing for services provided through December 2018 occurred in
January 2019 and included additional days in most billing cycles than had previously been
included. This resulted in higher than normal fourth quarter billings, and also resulted in a larger
than usual proportion of billing revenue being accrued in 2018 from January 2019 billings. This
is expected to be a one-time variance, with Q4-2019 revenue anticipated to more closely match
historical performance, and net adjustments decreasing proportionately.
In 2018 the Water Utility had operating income before depreciation of $5.8 million as compared
with $5.7 million during 2017. Water Fund operating revenues were about $280,000 below
expectations. Operating expenditures were about $3.2 million below budget due primarily to
$1.4 million in budgeted Tacoma water purchases that were not needed as well as
underexpenditures in professional services and miscellaneous expenses.
Water sales by volume in 2018 totaled 3.25 million hundred cubic feet (ccf), as compared to
3.05 million ccf in 2017. For many years, the Water utility has seen a general trend of decreased
year-over-year consumption per account due largely to conservation efforts and appliance
efficiency improvements. Additionally, the City has not provided water to Water District #111
since its take-or-pay agreement expired and the Interlocal Agreement was amended at the end
of 2016. However, the overall volume of water consumption has increased due to City growth,
offsetting lower per-account consumption. Also, the Q4-2018 billings saw increased
consumption amounts due to additional days being included in the billing cycle as noted above.
The largest growth in consumption by volume was seen in single family and manufacturing
accounts. Consumption billing has also seen lower adjustments, both in number and volume,
since the implementation of the Advanced Metering Infrastructure (AMI) project.
33
Quarterly Financial Report Through Q4-2018 34
The Sewer Utility finished 2018 with operating income before depreciation of $1.8 million as
compared to operating income of $2.2 million in 2017. Operating revenues were higher than
projected due to increased fourth quarter billings, exceeding annual budget by about $190,000
while expenditures were about $640,000 below budget.
The Stormwater Utility ended 2018 with operating income before depreciation of $2.2 million
compared with $2.6 million in 2017. Period 13 entries resulted in a $600,000 favorable
adjustment to working capital, of which $330,000 was for January billings accrued back for
December services. Revenues exceeded expectations, mainly due to the performance of City
storm charges; investment income also performed well above budget projections.
In 2018, the Solid Waste Utility Fund had $15.5 million in operating revenues, compared to
$15.3 million in operating expenditures. The City of Auburn’s Solid Waste services are
outsourced to Waste Management and to Republic Services, who manages the contract for the
annexed areas. As of December 2018, Waste Management serviced 15,474 customers (79%
of customers) and Republic Services serviced 4,103 customers (21% of customers).
The current mix of customer account types is:
• 90% Residential
• 8% Commercial
• 2% Multifamily
34
Quarterly Financial Report Through Q4-2018 35
The “diversion rate” is a measure of how much generated waste is not sent to the landfill; i.e.,
waste that is either recycled or collected yard waste. Through Q4-2018, the total diversion rate
was 28%, which represents a total of 19,100 tons of waste that was diverted from landfills.
2018 Tons Collected and Diversion Rates:
Garbage -
11,100 tons
(51.2%)Yard Waste-
6,400 tons
(29.4%)
Recycling-
4,200 tons
(19.4%)
2018 Residential Waste Stream
Garbage
Yard Waste
Recycling
Garbage -
7,200 tons
(77.5%)
Yard Waste -
500 tons
(5.7%)
Recycling -
1,600 tons
(16.8%)
2018 Multifamily Waste Stream
Garbage
Yard Waste
Recycling
Total: 9,300 tons collected
Diversion Rate: 23%Total: 21,700 tons collected
Diversion Rate: 49%
Garbage -
30,700 tons
(82.8%)
Yard Waste -
200 tons
(0.5%)
Recycling -
6,200 tons
(16.7%)
2018 Commercial Waste Stream
Garbage
Yard Waste
Recycling
Total: 37,100 tons collected
Diversion Rate: 17%
Garbage -
49,000 tons
(72.0%)
Yard Waste -
7,100 tons
(10.4%)
Recycling -
12,000 tons
(17.6%)
2018 Total Waste Stream
Garbage
Yard Waste
Recycling
Total: 68,100 tons collected
Diversion Rate: 28%
35
Quarterly Financial Report Through Q4-2018 36
Of the total tonnage collected through Q4-2018, 32% was collected from residential customers,
14% from multifamily customers, and 54% from commercial customers, as shown in the
following graph.
In 2018 the Cemetery Fund experienced operating income of $190,000, as compared with an
operating income of $220,000 in 2017, mainly due to increased operating expenditures in 2018.
In 2018, revenues for the fund were nearly $450,000 over budget expectations.
5,812
4,503
5,440 5,772 5,890 5,974 5,774 5,965
5,395
6,146 6,066
5,425
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18Tonnage2018 Solid Waste Tonnage by Customer Type
Residential Multifamily Commercial
$0
$200
$400
$600
$800
$1,000
$1,200
$1,400
$1,600
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecThousandsCEMETERY
2018 Budgeted
Revenue
2018 YE Actual
Revenue
2017 Actual Revenue
2018 YE Actual
Expenses
Cumulative Revenues & Expenditures
2018 Budget vs. Actual
36
Quarterly Financial Report Through Q4-2018 37
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 2018. As a result, the expenditure
balance gradually diminishes each month throughout the year. In 2018, unemployment claims
were about $180,000, or 75.8%, below budget.
No significant variances are reported in the Workers’ Compensation, Facilities, Innovation &
Technology, or Equipment Rental Funds.
P-Card Statistics
The City has been actively promoting the use of P-Cards in lieu of purchase orders to minimize
effort and maximize incentive payments from the vendor and the State. In Q4-2018, 3,810
P-Card transactions were processed as compared with 1,111 purchase order transactions. A
comparison of transactions continues to show increasing use of P-Cards relative to purchase
orders.
Total incentive payments received from US Bank in Q4-2018 totaled $24,172. These are
estimated payments since the quarterly rebate checks are not actually received until the next
quarter. Additionally, there is an annual incentive payment from the State that is received in Q2
of each year. The annual State incentive payment for 2017 was $24,693 and was received in
April of 2018.
1,001
3,722
1,111
3,810
- 1,000 2,000 3,000 4,000 5,000
Purchase
Order
Transactions
PCard
Transactions
PCard
Incentives
Received
(see text)
Purchase Order and PCard Transactions
Q4 2017 and Q4 2018
$24,901 $24,172
4,375
15,600
$120,018
4,240
16,128
$119,967
-
5,000
10,000
15,000
20,000
25,000
30,000
35,000
Purchase
Order
Transactions
PCard
Transactions
PCard
Incentives
Received
(see text)
YTD Q4 2017 and YTD Q4 2018
2017 2018
37
Quarterly Financial Report Through Q4-2018 38
Contact Information
This report is prepared by the Finance Department. Additional financial information can also be
viewed at our website: http://www.auburnwa.gov/. For any questions about this report please
contact Shelley Coleman at scoleman@auburnwa.gov.
38
Investment Purchase Purchase Maturity Yield to
Type Date Price Date Maturity
State Investment Pool Various 101,513,214$ Various 2.37%
KeyBank Money Market Various 6,517,960 Various 0.15%
OpusBank Public Interest Acct Various 10,218,137 Various 2.45%
FNMA 3/11/2016 998,844 2/22/2019 1.20%
FHLB 2/28/2018 2,000,000 2/28/2023 2.65%
FFCB 5/21/2018 2,000,000 10/21/2019 2.48%
FAMCA 6/27/2018 2,000,000 7/16/2020 2.50%
FFCB 7/16/2018 2,000,000 7/16/2020 2.60%
TX ST-BABs-A 8/8/2018 1,769,425 4/1/2020 2.68%
FFCB 8/27/2018 1,999,360 2/23/2021 2.70%
RFCSP 10/5/2018 4,999,846 10/15/2019 2.69%
RFCSP 12/14/2018 4,999,181 7/15/2020 2.73%
Total Cash & Investments 141,015,967$ 2.309%
Investment Mix % of Total
State Investment Pool 72.0%Current 6-month treasury rate 2.54%
KeyBank Money Market 4.6%Current State Pool rate 2.37%
OpusBank Public Interest Acct 7.2%KeyBank Money Market 0.15%
FNMA 0.7%OpusBank Public Interest Acct 2.45%
FHLB 1.4%Blended Auburn rate 2.31%
FFCB 4.3%
FAMCA 1.4%
TX ST-BABs-A 1.3%
RFCSP 7.1%
100.0%
City of Auburn
Investment Portfolio Summary
December 31, 2018
Summary
39
SALES TAX SUMMARY
DECEMBER 2018 SALES TAX DISTRIBUTIONS (FOR OCTOBER 2018 RETAIL ACTIVITY)
2017 Annual Total 2017 YTD 2018 YTD YTD 2017 Annual Total 2017 YTD 2018 YTD YTD
NAICS CONSTRUCTION (Nov '16-Oct '17)(Nov '16-Oct '17)(Nov '17-Oct '18)% Diff NAICS AUTOMOTIVE (Nov '16-Oct '17)(Nov '16-Oct '17)(Nov '17-Oct '18)% Diff
236 Construction of Buildings 1,503,231 1,503,231 1,257,918 -16.3%441 Motor Vehicle and Parts Dealer 3,703,385 3,703,385 b 3,843,704 3.8%
237 Heavy and Civil Construction 209,928 209,928 170,543 -18.8%447 Gasoline Stations 268,146 268,146 278,087 3.7%
238 Specialty Trade Contractors 918,947 918,947 881,157 -4.1%TOTAL AUTOMOTIVE 3,971,531$ 3,971,531$ 4,121,791$ 3.8%
TOTAL CONSTRUCTION 2,632,107$ 2,632,107$ 2,309,617$ -12.3%Overall Change from Previous Year 150,259$
Overall Change from Previous Year (322,490)$
2017 Annual Total 2017 YTD 2018 YTD YTD
2017 Annual Total 2017 YTD 2018 YTD YTD NAICS RETAIL TRADE (Nov '16-Oct '17)(Nov '16-Oct '17)(Nov '17-Oct '18)% Diff
NAICS MANUFACTURING (Nov '16-Oct '17)(Nov '16-Oct '17)(Nov '17-Oct '18)% Diff 442 Furniture and Home Furnishings 197,226 197,226 209,879 6.4%
311 Food Manufacturing 4,642 4,642 7,745 66.8%443 Electronics and Appliances 211,036 211,036 229,028 8.5%
312 Beverage and Tobacco Products 7,842 7,842 12,379 57.9%444 Building Material and Garden 580,347 580,347 576,468 -0.7%
313 Textile Mills 264 264 559 112.0%445 Food and Beverage Stores 368,971 368,971 387,928 5.1%
314 Textile Product Mills 1,501 1,501 1,860 24.0%446 Health and Personal Care Store 368,699 368,699 420,087 13.9%
315 Apparel Manufacturing 227 227 347 52.8%448 Clothing and Accessories 1,118,980 1,118,980 a 1,170,083 4.6%
316 Leather and Allied Products 46 46 221 383.2%451 Sporting Goods, Hobby, Books 199,717 199,717 220,869 10.6%
321 Wood Product Manufacturing 16,528 16,528 16,224 -1.8%452 General Merchandise Stores 992,858 992,858 870,096 -12.4%
322 Paper Manufacturing 15,254 15,254 12,982 -14.9%453 Miscellaneous Store Retailers 463,719 463,719 689,386 48.7%
323 Printing and Related Support 54,391 54,391 46,020 -15.4%454 Nonstore Retailers 370,027 370,027 267,088 -27.8%
324 Petroleum and Coal Products 1,040 1,040 9,780 840.5%TOTAL RETAIL TRADE 4,871,580$ 4,871,580$ 5,040,912$ 3.5%
325 Chemical Manufacturing 15,982 15,982 12,512 -21.7%Overall Change from Previous Year 169,332$
326 Plastics and Rubber Products 8,856 8,856 8,844 -0.1%
327 Nonmetallic Mineral Products 17,749 17,749 21,776 22.7%
331 Primary Metal Manufacturing 818 818 4,065 397.0%2017 Annual Total 2017 YTD 2018 YTD YTD
332 Fabricated Metal Product Manufacturing 28,618 28,618 26,115 -8.7%NAICS SERVICES (Nov '16-Oct '17)(Nov '16-Oct '17)(Nov '17-Oct '18)% Diff
333 Machinery Manufacturing 18,216 18,216 24,283 33.3%51*Information 662,460 662,460 637,625 -3.7%
334 Computer and Electronic Product 32,957 32,957 7,184 -78.2%52*Finance and Insurance 122,200 122,200 140,135 14.7%
335 Electric Equipment, Appliances 1,103 1,103 791 -28.3%53*Real Estate, Rental, Leasing 367,828 367,828 367,824 0.0%
336 Transportation Equipment Manufacturing 385,842 385,842 488,093 26.5%541 Professional, Scientific, Tech 238,617 238,617 253,684 6.3%
337 Furniture and Related Products 34,157 34,157 19,899 -41.7%551 Company Management 13 13 16 22.5%
339 Miscellaneous Manufacturing 31,567 31,567 32,607 3.3%56*Admin. Supp., Remed Svcs 276,380 276,380 423,760 53.3%
TOTAL MANUFACTURING 677,596$ 677,596$ 754,285$ 11.3%611 Educational Services 55,506 55,506 47,224 -14.9%
Overall Change from Previous Year 76,690$ 62*Health Care Social Assistance 74,678 74,678 93,420 25.1%
71*Arts and Entertainment 109,577 109,577 119,180 8.8%
72*Accommodation and Food Svcs 1,276,310 1,276,310 1,435,327 12.5%
2017 Annual Total 2017 YTD 2018 YTD YTD 81*Other Services 546,059 546,059 560,054 2.6%
NAICS TRANSPORTATION AND WAREHOUSING (Nov '16-Oct '17)(Nov '16-Oct '17)(Nov '17-Oct '18)% Diff 92*Public Administration 182,112 182,112 150,574 -17.3%
481 Air Transportation 2 2 3 27.1%TOTAL SERVICES 3,911,740$ 3,911,740$ 4,228,822$ 8.1%
482 Rail Transportation 20,972 20,972 25,453 21.4%Overall Change from Previous Year 317,082$
484 Truck Transportation 4,014 4,014 26,564 561.8%
485 Transit and Ground Passengers -3,390 -3,390 56 -101.7%
488 Transportation Support 51,246 51,246 52,211 1.9%2017 Annual Total 2017 YTD 2018 YTD YTD
491 Postal Service 274 274 1,007 267.8%NAICS MISCELLANEOUS (Nov '16-Oct '17)(Nov '16-Oct '17)(Nov '17-Oct '18)% Diff
492 Couriers and Messengers 1,859 1,859 1,359 -26.9%000 Unknown 0 0 0
493 Warehousing and Storage 13,526 13,526 13,554 0.2%111-115 Agriculture, Forestry, Fishing 6,486 6,486 3,656 -43.6%
TOTAL TRANSPORTATION 88,502$ 88,502$ 120,208$ 35.8%211-221 Mining & Utilities 26,023 26,023 26,370 1.3%
Overall Change from Previous Year 31,706$ 999 Unclassifiable Establishments 32,865 32,865 123,605 276.1%
TOTAL SERVICES 65,374$ 65,374$ 153,632$ 135.0%
Overall Change from Previous Year 88,258$
2017 Annual Total 2017 YTD 2018 YTD YTD
NAICS WHOLESALE TRADE (Nov '16-Oct '17)(Nov '16-Oct '17)(Nov '17-Oct '18)% Diff
423 Wholesale Trade, Durable Goods 1,080,558 1,080,558 1,147,872 6.2%GRAND TOTAL 17,581,514$ 17,581,514 18,198,285
424 Wholesale Trade, Nondurable 278,097 278,097 315,956 13.6%Overall Change from Previous Year 616,771 3.5%
425 Wholesale Electronic Markets 4,428 4,428 5,189 17.2%
TOTAL WHOLESALE 1,363,083$ 1,363,083$ 1,469,017$ 7.8%Total December 2018 Sales Tax Distributions 1,506,629$
Overall Change from Previous Year 105,934$ Dollar Increase from December 2017 77,849$
Percent Increase from December 2017
Includes Adjustments in excess of +/- $10,000.Comparisons:
a. WA State Dept of Revenue audit adjustment to sales tax returns for period of April 2017 (adjustment: - $29,746).December 2017 14,507,078 1,428,780$
b. WA State Dept of Revenue audit adjustment to sales tax returns for period of October 2017 (adjustment: $36,668).December 2016 14,117,959 1,352,227$
11/21/18
Prepared by Auburn Finance Department
5.4%
40
Budget
YE
Actual Variance Budget
YE
Actual Variance Budget
YE
Actual Variance Budget
YE
Actual Variance
OPERATING FUND:460 460 461 461 462 462
OPERATING REVENUES
Charges For Service 15,203,431 14,737,073 (466,358) 8,142,100 8,264,733 122,633 18,189,923 17,039,551 (1,150,372) 9,242,676 9,475,305 232,629
Grants - - - - - -
Interest Earnings 10,000 158,870 148,870 20,000 88,972 68,972 1,000 23,694 22,694 15,000 84,197 69,197
Rents, Leases, Concessions, & Other 219,024 251,797 32,773 75,570 71,039 (4,531) - - - 63,226 87,101 23,875
TOTAL OPERATING REVENUES 15,432,455 15,147,740 (284,715) 8,237,670 8,424,745 187,075 18,190,923 17,063,245 (1,127,678) 9,320,902 9,646,603 325,701
OPERATING EXPENSES
Salaries & Wages 2,799,131 2,615,990 183,141 1,808,531 1,787,641 20,890 - - - 2,716,743 2,627,378 89,365
Benefits 1,416,014 1,292,221 123,793 906,551 874,561 31,990 - - - 1,396,377 1,304,952 91,425
Supplies 334,244 307,781 26,463 136,550 137,874 (1,324) - - - 94,550 121,820 (27,270)
Other Service Charges 5,285,350 2,908,318 2,377,032 3,070,471 2,475,370 595,101 - - - 1,847,779 1,478,499 369,280
Intergovernmental Services (Less Transfers Out)9,500 13,041 (3,541) 83,000 80,670 2,330
Waste Management Payments
Sewer Metro Services 18,250,200 17,326,799 923,401
Debt Service Interest 1,313,575 775,845 537,730 264,928 264,927 1 - - - 350,697 350,697 0
Interfund Operating Rentals & Supplies 1,422,040 1,422,083 (43) 1,034,321 1,034,316 5 - - - 1,444,254 1,444,811 (557)
TOTAL OPERATING EXPENSES 12,570,354 9,322,237 3,248,117 7,230,852 6,587,730 643,122 18,250,200 17,326,799 923,401 7,933,400 7,408,827 524,573
OPERATING REVENUES LESS EXPENSES
BEFORE DEPRECIATION 2,862,101 5,825,502 2,963,401 1,006,818 1,837,015 830,197 (59,277) (263,553) (204,276) 1,387,502 2,237,776 850,274
NON-OPERATING REVENUES
Operating Transfers-in - - -
Intergovernmental Loan 1,196,600 86,332 (1,110,268)
Other Non-Operating Revenues -
NON-OPERATING EXPENSES
Transfer to Capital Subfund 3,796,600 2,686,332 1,110,268 - - - 1,200,000 125,000 1,075,000
Other Operating Transfers-out 279,291 64,068 215,223 253,020 45,244 207,776 369,192 157,589 211,603
Debt Service Principal 1,760,291 1,506,167 254,124 550,947 550,947 0 425,578 425,578 -
Net Change in Restricted Net Assets - (11,352) 11,352 - (19,905) 19,905 - 22,404 (22,404)
Interfund Loan Repayment
Period 13 Adjustments - 726,016 726,016 - 522,096 522,096 - 798,015 798,015 - 599,845 599,845
BEGINNING WORKING CAPITAL - January 1, 2018 5,574,972 5,574,972 - 3,609,377 3,609,377 - 3,033,467 3,033,467 - 2,910,117 2,910,117 -
ENDING WORKING CAPITAL - December 31, 2018 3,797,491 7,967,608 4,170,117 3,812,228 5,392,202 1,579,974 2,974,190 3,567,929 593,739 2,302,849 5,017,168 2,714,319
NET CHANGE IN WORKING CAPITAL (see Note)(1,777,481) 2,392,636 4,170,117 202,851 1,782,826 1,579,974 (59,277) 534,461 593,739 (607,268) 2,107,051 2,714,319
CAPITAL FUND:
CAPITAL REVENUES
Interest Revenue - 19,401 19,401 - 213,430 213,430 - 187,463 187,463
Grants 152,600 59,093 (93,507) 210,000 24,816 (185,184)
Contributions - - - - - - -
Other Non-Operating Revenue - - - - 8,749 8,749 - - -
Increase In Contributions - System Development 1,250,000 285,082 (964,918) 600,000 233,805 (366,195) 600,000 370,826 (229,174)
Interfund Revenues - - - - - - - - -
Increase In Contributions - FAA - - - - - - - - -
Proceeds of Debt Activity 2,500,000 - (2,500,000) - - - - - -
Transfers In from Operating Sub-Fund 3,796,600 2,686,332 (1,110,268) - - - 1,200,000 125,000 (1,075,000)
Transfer In from Other Funds 200,000 - (200,000) - - - - -
TOTAL CAPITAL REVENUES 7,899,200 3,049,908 (4,849,292) 600,000 455,983 (144,017) 2,010,000 708,106 (1,301,894)
CAPITAL EXPENSES
Increase In Fixed Assets - Salaries 307,857 133,388 174,469 87,857 76,379 11,478 95,714 131,653 (35,939)
Increase In Fixed Assets - Benefits 123,143 61,458 61,685 35,143 34,570 573 38,286 58,112 (19,826)
Increase In Fixed Assets - Services - - - - - - - - -
Increase In Fixed Assets - Site Improvements - 42,752 (42,752) - - - - -
Increase In Fixed Assets - Equipment - - - - 18,854 (18,854) - - -
Increase In Fixed Assets - Construction 6,650,786 2,279,657 4,371,129 2,132,300 290,796 1,841,504 3,192,300 1,351,420 1,840,880
Operating Transfers Out 50,000 50,000 - 150,000 50,000 100,000 150,000 50,000 100,000
TOTAL CAPITAL EXPENSES 7,131,786 2,567,255 4,564,531 2,405,300 470,600 1,934,700 3,476,300 1,591,185 1,885,115
Period 13 Adjustments - 688 688 - 23,007 23,007 - 25,494 25,494
BEGINNING WORKING CAPITAL - January 1, 2018 1,485,010 1,485,010 - 12,467,191 12,467,191 - 13,194,888 13,194,888 -
2,252,424 1,968,351 (284,073) 10,661,891 12,475,582 1,813,691 11,728,588 12,337,303 608,715
NET CHANGE IN WORKING CAPITAL (see Note)767,414 483,341 (284,073) (1,805,300) 8,391 1,813,691 (1,466,300) (857,585) 608,715
Total Change in Working Capital (1,010,067) 2,875,977 3,886,044 (1,602,449) 1,791,217 3,393,666 (59,277) 534,461 593,738 (2,073,568) 1,249,466 3,323,034
(*) Depreciation 3,250,000 3,407,933 2,430,000 2,234,136 - - 2,210,000 2,067,030
OPERATING & CAPITAL FUNDS
WATER
ENTERPRISE FUNDS
SEWER SEWER METRO STORMCash Basis through December 2018
(*) Debt service interest as shown represents actual cash outlay. Debt service principal represents actual expenditures; payments will be made as scheduled in December 2018. Working Capital = Current Assets
minus Current Liabilities
ENDING WORKING CAPITAL - December 31, 2018
41
OPERATING FUND:
OPERATING REVENUES
Charges For Service
Grants
Interest Earnings
Rents, Leases, Concessions, & Other
TOTAL OPERATING REVENUES
OPERATING EXPENSES
Salaries & Wages
Benefits
Supplies
Other Service Charges
Intergovernmental Services (Less Transfers Out)
Waste Management Payments
Sewer Metro Services
Debt Service Interest
Interfund Operating Rentals & Supplies
TOTAL OPERATING EXPENSES
OPERATING REVENUES LESS EXPENSES
BEFORE DEPRECIATION
NON-OPERATING REVENUES
Operating Transfers-in
Intergovernmental Loan
Other Non-Operating Revenues
NON-OPERATING EXPENSES
Transfer to Capital Subfund
Other Operating Transfers-out
Debt Service Principal
Net Change in Restricted Net Assets
Interfund Loan Repayment
Period 13 Adjustments
BEGINNING WORKING CAPITAL - January 1, 2018
ENDING WORKING CAPITAL - December 31, 2018
NET CHANGE IN WORKING CAPITAL (see Note)
CAPITAL FUND:
CAPITAL REVENUES
Interest Revenue
Grants
Contributions
Other Non-Operating Revenue
Increase In Contributions - System Development
Interfund Revenues
Increase In Contributions - FAA
Proceeds of Debt Activity
Transfers In from Operating Sub-Fund
Transfer In from Other Funds
TOTAL CAPITAL REVENUES
CAPITAL EXPENSES
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
Operating Transfers Out
TOTAL CAPITAL EXPENSES
Period 13 Adjustments
BEGINNING WORKING CAPITAL - January 1, 2018
NET CHANGE IN WORKING CAPITAL (see Note)
Total Change in Working Capital
(*) Depreciation
OPERATING & CAPITAL FUNDS
Cash Basis through December 2018
Working Capital = Current Assets
minus Current Liabilities
ENDING WORKING CAPITAL - December 31, 2018
Budget
YE
Actual Variance Budget
YE
Actual Variance Budget
YE
Actual Variance Budget
YE
Actual Variance
464 464 465 465 466 466 -
15,555,350 15,379,517 (175,833) 843,300 939,741 96,441 933,000 1,367,875 434,875 - - -
88,600 15,862 (72,738) - - - - -
9,000 94,592 85,592 2,500 16,129 13,629 800 13,015 12,215 1,500 27,223 25,723
- 882 882 3,000 8,590 5,590 - - -
15,652,950 15,490,854 (162,096) 848,800 964,460 115,660 933,800 1,380,890 447,090 1,500 27,223 25,723
339,207 338,300 907 49,200 5,662 43,538 490,917 484,803 6,114 - - -
159,496 157,456 2,040 33,700 1,869 31,831 277,863 262,143 15,720 237,000 57,248 179,752
33,400 12,503 20,897 2,500 3,586 (1,086) 221,700 233,733 (12,033) - - -
1,655,795 1,526,393 129,402 588,550 545,161 43,389 157,980 160,890 (2,910) 4,230 52,708 (48,478)
367,050 361,202 5,848 - - - - - - - - -
12,901,000 12,774,505 126,495
- - - 16,425 7,342 9,083 - - - - - -
114,279 114,276 3 1,500 1,500 - 48,898 48,900 (2) - - -
15,570,227 15,284,635 285,592 691,875 565,120 126,755 1,197,358 1,190,469 6,889 241,230 109,956 131,274
82,723 206,219 123,496 156,925 399,340 242,415 (263,558) 190,421 453,979 (239,730) (82,733) 156,997
250,000 - (250,000) - - -
- 3,100 3,100
- - - 5,000 3,040 1,960 1,033 632 401
175,000 176,402 (1,402) - - -
- (176,886) 176,886 - 3,100 (3,100)
40,100 40,573 (473)
- 392,966 392,966 - (187,901) (187,901) - 46,081 46,081 - (241) (241)
5,083,854 5,083,854 - 422,608 422,608 - 514,788 514,788 - 2,015,500 2,015,500 -
5,166,577 5,683,039 516,462 359,433 590,918 231,485 500,197 750,658 250,461 1,775,770 1,932,526 156,756
82,723 599,185 516,462 (63,175) 168,310 231,485 (14,591) 235,870 250,461 (239,730) (82,975) 156,756
- 4,270 4,270 - 4,807 4,807
44,467 - (44,467) - - -
- - - - - -
- - - - - -
- - - - - -
786,000 18,896 (767,104) - - -
- - - - - -
- - - - - -
- - - 75,000 7,558 (67,442)
830,467 23,166 (807,301) 75,000 12,365 (62,635)
106,429 626 105,803 - - -
42,571 234 42,337 - - -
- - - - 33 (33)
- - - -
- 12,000 8,207 3,793
829,034 123,130 705,904 63,000 9,808 53,192
- - - - - -
978,034 123,990 854,044 75,000 18,048 56,952
- 51,732 51,732 - (2) (2)
260,972 260,972 - 259,037 259,037 -
113,405 211,881 98,476 259,037 253,352 (5,685)
(147,567) (49,091) 98,476 - (5,685) (5,685)
82,723 599,185 (210,742) 119,219 329,961 (14,591) 230,185 244,776 (239,730) (82,975) 156,755
19,500 18,819 481,000 435,848 51,000 33,212 - -
Note: Includes December's Waste Management
payment ($1,052,273), which will be made in December.
(*) Debt service interest as shown represents actual cash outlay. Debt service principal represents actual expenditures;
payments will be made as scheduled in December 2018.
ENTERPRISE FUNDS
SOLID WASTE AIRPORT CEMETERY
INTERNAL SERVICE FUNDS
INSURANCE
42
OPERATING FUND:
OPERATING REVENUES
Charges For Service
Grants
Interest Earnings
Rents, Leases, Concessions, & Other
TOTAL OPERATING REVENUES
OPERATING EXPENSES
Salaries & Wages
Benefits
Supplies
Other Service Charges
Intergovernmental Services (Less Transfers Out)
Waste Management Payments
Sewer Metro Services
Debt Service Interest
Interfund Operating Rentals & Supplies
TOTAL OPERATING EXPENSES
OPERATING REVENUES LESS EXPENSES
BEFORE DEPRECIATION
NON-OPERATING REVENUES
Operating Transfers-in
Intergovernmental Loan
Other Non-Operating Revenues
NON-OPERATING EXPENSES
Transfer to Capital Subfund
Other Operating Transfers-out
Debt Service Principal
Net Change in Restricted Net Assets
Interfund Loan Repayment
Period 13 Adjustments
BEGINNING WORKING CAPITAL - January 1, 2018
ENDING WORKING CAPITAL - December 31, 2018
NET CHANGE IN WORKING CAPITAL (see Note)
CAPITAL FUND:
CAPITAL REVENUES
Interest Revenue
Grants
Contributions
Other Non-Operating Revenue
Increase In Contributions - System Development
Interfund Revenues
Increase In Contributions - FAA
Proceeds of Debt Activity
Transfers In from Operating Sub-Fund
Transfer In from Other Funds
TOTAL CAPITAL REVENUES
CAPITAL EXPENSES
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
Operating Transfers Out
TOTAL CAPITAL EXPENSES
Period 13 Adjustments
BEGINNING WORKING CAPITAL - January 1, 2018
NET CHANGE IN WORKING CAPITAL (see Note)
Total Change in Working Capital
(*) Depreciation
OPERATING & CAPITAL FUNDS
Cash Basis through December 2018
Working Capital = Current Assets
minus Current Liabilities
ENDING WORKING CAPITAL - December 31, 2018
Budget
YE
Actual Variance Budget
YE
Actual Variance Budget
YE
Actual Variance Budget
YE
Actual Variance
- - 568 568 560 560
1,008,100 1,006,588 (1,512) 3,463,200 3,587,430 124,230 6,212,031 6,230,043 18,012 2,260,325 2,266,258 5,933
- 49,900 - (49,900) - -
2,600 35,623 33,023 8,800 39,431 30,631 5,500 41,568 36,068 - 62,112 62,112
93,000 23,473 (69,527) - - - - 1,248 1,248 - 164,934 164,934
1,103,700 1,065,684 (38,016) 3,521,900 3,626,861 104,961 6,217,531 6,272,859 55,328 2,260,325 2,493,305 232,980
80,132 77,782 2,350 678,651 631,792 46,859 1,909,554 1,819,243 90,311 628,983 607,588 21,395
367,336 170,680 196,656 383,710 353,073 30,637 887,603 832,179 55,424 331,116 309,540 21,576
- - - 140,220 119,274 20,946 464,650 320,465 144,185 1,081,000 798,391 282,609
415,215 267,948 147,267 2,196,862 1,710,362 486,500 3,035,130 2,531,735 503,395 435,180 531,694 (96,514)
- - - - - - - - - - - -
- - - - - - - - - 2,618 2,733 (115)
- - - 143,811 143,808 3 190,795 190,800 (5) 220,212 220,332 (120)
862,683 516,410 346,273 3,543,254 2,958,309 584,945 6,487,732 5,694,422 793,310 2,699,109 2,470,279 228,830
241,017 549,273 308,256 (21,354) 668,552 689,906 (270,201) 578,437 848,638 (438,784) 23,026 461,810
255,000 247,266 (7,734) 1,032,496 250,430 (782,066) 150,000 150,000 -
911,939 834,590 77,349 60,500 11,617 48,883 - - -
- - -
- 300 (300) - - - - (177,345) 177,345
- (1,001,451) (1,001,451) - 11,145 11,145 - 172,009 172,009 - (38,331) (38,331)
1,625,120 1,625,120 - 1,741,924 1,741,924 - 1,804,816 1,804,816 - 3,110,811 3,110,811 -
1,866,137 1,172,942 (693,195) 1,063,631 1,833,997 770,366 2,506,611 2,794,074 287,463 2,822,027 3,422,851 600,824
241,017 (452,178) (693,195) (678,293) 92,073 770,366 701,795 989,259 287,463 (288,784) 312,040 600,824
- 30,117 30,117 - 69,825 69,825
- - - - - -
- - - - - -
- - - - - -
- - - 1,703,631 1,703,628 (3)
- - - - - -
- - - - - -
- - - - - -
172,300 4,147 (168,153) 1,035,858 244,322 (791,536)
172,300 34,264 (138,036) 2,739,489 2,017,776 (721,713)
- - - - - -
- - - - - -
- - - - - -
- -
928,100 179,722 748,378 1,720,951 1,674,477 46,474
171,600 171,232 368 800,100 68,664 731,436
- - - - - -
1,099,700 350,954 748,746 2,521,051 1,743,141 777,910
- 5,937 5,937 - 41,689 41,689
1,837,285 1,837,285 - 3,453,808 3,453,808 -
909,885 1,526,533 616,648 3,672,246 3,770,132 97,886
(927,400) (310,752) 616,648 218,438 316,324 97,886
241,017 (452,178) (693,195) (678,293) 92,073 770,366 (225,605) 678,506 904,111 (70,346) 628,364 698,710
- - - - 726,000 462,540 987,000 1,172,807
INTERNAL SERVICE FUNDS
WORKER'S COMPENSATION FACILITIES INNOVATION & TECHNOLOGY EQUIPMENT RENTAL
43