HomeMy WebLinkAboutFebruary 2012
AGENDA BILL APPROVAL FORM
Agenda Subject: February 2012 Financial Report
Date: 04/9/2012
Department: Finance
Attachments: Monthly Financial
Report
Budget Impact: $0
Administrative Recommendation:
Background Summary:
The purpose of the monthly financial reports is to summarize for the City Council the general state of city-
wide financial affairs and to highlight significant items or trends that the City Council should be aware of.
The following provides a high level summary of the City’s financial performance. Further detail can be
found within the attached financial report.
The February status report is based on financial data available as of March 28, 2012. Sales tax
information represents business activity that occurred in December 2011.
General Fund:
The general fund is the City’s largest fund and is used to account for the majority of City resources and
services except those required by statute or to be accounted for in another fund.
At the end of February, General Fund revenue collections totaled $7.0 million and compare to budget-to-
date of $7.2 million. Intergovernmental revenues are below budget due to the timing of payments from
the Muckleshoot Indian Tribe and lower revenue collections from the red light photo-enforcement
program.
General tax revenues, the largest category of revenue within the General Fund, totaled $5.5 million and is
on target with budget. The City’s sales tax totaled $2.5 million and is on target with budget and is running
about 4.8% below same period 2011 due primarily to a one-time adjustment by the State of Washington.
Accounting for this one-time adjustment, 2012 sales taxes are running about 1.5% below 2011 levels.
Property tax collections totaled $164,000 and is comparable to collections for the same period 2011.
Approximately 50% of property taxes will be collected in April, coinciding with the first half King County
due date for property tax payments.
General Fund expenses totaled $7.4 million and compare to budget of $8.2 million. Departmental
expenditures are within expectations. SCORE jail expenses are below budget due to the timing of
invoices. A potential issue facing SCORE in 2012 and 2013 may be the financial implications of lower
than expected non-member contracted beds. The SCORE 2012 budget contemplated $3.7 million in
contract bed revenue from non member cities, 75 daily beds. Currently, contract bed revenue is running
10% of projection, 7.5 beds daily. The Administration board is working with SCORE on how best to
market the beds to potential users. The financial implications of the lower than expected non member
contracted beds will potentially impact Auburn. The 2012 budget for Score is $4.7 million, which is based
on 2007 ADP of 100 at $112.50 per day plus an additional $600,000 added in the 2012 mid-term
correction in anticipation of lower than expected contract beds and the likelihood of an additional
Maintenance and Operation charge from SCORE.
1
Agenda Subject: February 2012 Financial Report
Date: 04/9/2012
Enterprise Funds:
The City’s eight enterprise funds account for operations with revenues primarily provided from user fees,
charges or contracts for services.
At the end of February, the Water fund ended at break even. The Sewer fund ended this period with a
$250,000 operating loss. Stormwater revenues are on target and are sufficient to meet expenses. A rate
study update has been completed by City staff for all three utilities the results of which are currently being
reviewed by Council.
The Golf Course ended February with an operating loss of $190,000 and compare to an operating loss of
$183,000 for the same period last year. Financial performance for the Auburn Golf Course is expected to
improve with improvement in weather during the spring and summer.
Cemetery revenues at the end of February totaled $132,000 and were slightly below expenses of
$152,000. A transfer of $200,000 from the Cumulative Reserve Fund to the Cemetery Fund was
approved by Council as part of budget amendment #7 to support anticipated cash flow needs in 2012.
Internal Service Funds:
Internal Service Funds provide services to other City departments and include functions such as
Insurance, Facilities, Information Services, and Equipment Rental. At the end of the year, revenue from
charges assessed to internal client departments was sufficient to meet expenses
Investment Portfolio:
The City’s total cash and investments at the end of February was $98.2 million and was comparable to
January 2012.
Reviewed by Council & Committees: Reviewed by Departments & Divisions:
Arts Commission COUNCIL COMMITTEES: Building M&O
Airport Finance Cemetery Mayor
Hearing Examiner Municipal Serv. Finance Parks
Human Services Planning & CD Fire Planning Park Board Public Works Legal Police
Planning Comm. Other Public Works Human Resources
Information Services
Action:
Committee Approval: Yes No
Council Approval: Yes No Call for Public Hearing ___/___/____
Referred to _________________________________ Until ____/___/____
Tabled ______________________________________ Until ___/___/____
Councilmember: Partridge Staff: Coleman
Meeting Date: April 16, 2012 Item Number:
2
Monthly Financial Report February 2012
(1) Total Sales Tax revenue includes $334,302 in Streamlined Sales Tax mitigation payments and $9,467 in Pierce
County Park Sales Tax. Streamlined Sales tax payments are expected to total $2 million for the year.
General Fund 2011
Summary of Sources and Uses
Annual Budget YTD Budget YTD Actual YTD Actual Amount Percentage
OPERATING REVENUES
Property Tax 12,562,565 177,700 163,591 198,113 (14,109) -7.9%
Sales Tax (1)14,295,000 2,463,800 2,495,324 2,622,375 31,524 1.3%
Sales Tax - Annexation Credit 1,383,730 243,430 258,121 259,369 14,691 6.0%
Criminal Justice Sales Tax 1,212,900 215,200 247,881 233,300 32,681 15.2%
Brokered Natural Gas Tax 260,000 57,700 75,623 69,748 17,923 31.1%
City Utilities Tax 2,620,200 410,200 418,759 388,246 8,559 2.1%
Admissions Tax 360,000 65,800 55,895 60,369 (9,905) -15.1%
Electric Tax 3,275,000 826,000 812,586 789,549 (13,414) -1.6%
Natural Gas Tax 1,295,820 321,500 295,289 268,472 (26,211) -8.2%
Cable TV Franchise Fee 703,600 177,200 202,201 204,994 25,001 14.1%
Cable TV Franchise Fee - Capital 75,000 18,300 15,824 15,993 (2,476) -13.5%
Telephone Tax 2,012,400 352,100 359,943 375,567 7,843 2.2%
Garbage Tax (external)150,000 27,600 12,381 31,697 (15,219) -55.1%
Leasehold Excise Tax 50,000 12,600 2,401 12,346 (10,199) N/A
Gambling Excise Tax 331,500 110,900 65,768 58,900 (45,132) -40.7%
Taxes sub-total 40,587,715 5,480,030 5,481,587 5,589,039 1,557 0.0%
Business License Fees 200,000 38,300 89,783 74,289 51,483 134.4%
Building Permits 700,000 101,100 155,934 132,791 54,834 54.2%
Other Licenses & Permits 229,000 26,800 42,633 35,807 15,833 59.1%
Intergovernmental (Grants, etc)3,756,285 730,200 474,753 726,559 (255,447) -35.0%
Charges for Services:
General Government Services 64,600 11,500 18,863 13,019 7,363 64.0%
Public Safety 223,500 39,100 39,657 42,781 557 1.4%
Development Services Fees 627,000 80,000 148,307 60,195 68,307 85.4%
Culture and Recreation 920,000 124,100 114,137 100,548 (9,963) -8.0%
Fines and Forfeits 2,208,500 416,700 277,784 360,998 (138,916) -33.3%
Fees/Charges/Fines sub-total 8,928,885 1,567,800 1,361,851 1,546,986 (205,949) -13.1%
Interests and Other Earnings 115,000 18,100 10,582 12,222 (7,518) -41.5%
Rents, Leases and Concessions 311,000 67,300 43,995 103,952 (23,305) -34.6%
Contributions and Donations 20,500 1,700 4,838 3,462 3,138 184.6%
Other Miscellaneous 46,200 5,300 11,677 9,283 6,377 120.3%
Transfers In 17,000 17,000 17,000 32,439 - 0.0%
Insurance Recoveries- Capital & Operating 25,000 4,577 10,447 27,003 5,870 128.2%
Other Revenues sub-total 534,700 113,977 98,539 188,360 (15,438) -13.5%
Total Operating Revenues 50,051,300 7,161,807 6,941,978 7,324,385 (219,829) -3.1%
Operating Expenditures
Council & Mayor 869,890 135,890 128,604 120,357 7,286 5.4%
Municipal Court & Probation 3,399,260 485,400 462,130 442,594 23,270 4.8%
Human Resources 886,530 134,500 135,279 117,923 (779) -0.6%
Finance 1,235,590 185,800 171,315 171,059 14,485 7.8%
City Attorney 1,699,500 264,000 240,440 241,341 23,560 8.9%
Planning 3,892,870 633,200 633,159 582,876 41 0.0%
Community & Human Services 1,101,360 194,660 200,259 158,348 (5,599) -2.9%
Jail - SCORE 4,726,250 661,300 286,419 - 374,881 56.7%
Police 20,512,690 3,090,000 2,993,331 2,887,107 96,669 3.1%
Engineering 2,623,770 413,570 388,313 354,015 25,257 6.1%
Parks and Recreation 7,552,230 1,096,000 1,073,879 1,009,501 22,121 2.0%
Streets 3,215,280 481,600 417,932 446,605 63,668 13.2%
Non-Departmental 4,736,200 388,900 286,813 255,543 102,087 26.3%
Total Operating Expenditures 56,451,420 8,164,820 7,417,873 6,787,269 746,947 9.1%
2012 2012 YTD Budget vs. Actual
Favorable (Unfavorable)
3
Monthly Financial Report February 2012
Overview
This financial overview reflects the City’s overall financial position for the fiscal period ending
February 29, 2012 and represents financial data available as of March 28, 2012. The budgeted
year-to-date revenues and operating expenses are primarily based on the collection/disbursement
average for the same period of the two prior years.
General Fund revenue highlights include:
- Tax revenues totaled $5.5 million and are on target with budget. Sales taxes, including
estimated streamlined sales tax mitigation payments and sales taxes from Pierce County
parks, totaled $2.5 million and were nearly equal to the same period in 2011. Retail sales
activity continues to gradually improve, mirroring the regional and national improvement
in employment and consumer confidence and spending.
- Revenues from fees, charges and fines totaled $1.4 million and were below budget,
reflecting the timing of reimbursements and lowered revenue from red-light photo
enforcement traffic fines.
- Other revenues totaled $98,500 and were slightly below budget and reflect lowered
revenue from rents and leases.
General Fund expenses totaled $7.4 million and were below budget, reflecting the timing of
invoices from SCORE for municipal jail services.
SCORE assessments to member cities, including the City of Auburn, is based on the number of
bed days and the number of contracted bed days from non-member agencies. The SCORE 2012
budget contemplated $3.7 million in contract bed revenue from non member cities, 75 daily
beds. Currently, contract bed revenue is running 10% of projection, 7.5 beds daily. The
Administration board is working with SCORE on how best to market the beds to potential users.
The financial implications of the lower than expected non member contracted beds will
potentially impact Auburn. The 2012 budget for Score is $4.7 million, which is based on 2007
ADP of 100 at $112.50 per day plus an additional $600,000 added in the 2012 mid-term
correction in anticipation of lower than expected contract beds and the likelihood of an
additional Maintenance and Operation charge from SCORE.
Non-departmental expenditures were also below budget, and reflect unspent budget for
retirement benefits.
Revenues
The combined total of property tax, sales/use tax, utility tax, gambling, and admissions tax
provide approximately 80% of all resources supporting general governmental activities. The
following section provides detail information on these sources.
Property Tax collections to-date totaled $164,000 and compare to budget of $178,000. The
majority of property tax revenues are collected during the months of April and October,
coinciding with the due date for County property tax billings.
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Monthly Financial Report February 2012
Sales taxes totaled $2.5 million and are on-target with budget-to-date and is running about 1.5%
below 2011 levels after accounting for a one-time adjustment by the State of Washington. Total
collections for 2012 are expected to slightly exceed annual budget of $14.3 million reflecting the
gradual strengthening of the regional and national economies. Sales taxes include an allocated
payment of $334,000 for Streamlined Sales Tax Mitigation payments.
The following table breaks out the City’s base sales tax, excluding Criminal Justice, Annexation
Credit and Streamlined Sales Tax Mitigation by major business sectors.
$0.0
$2.0
$4.0
$6.0
$8.0
$10.0
$12.0
$14.0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
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Property Taxes
2012 budget
2012 actual to date
2011 actual
$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 Dec
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Sales & Use Tax
2012 budget
2012 actual to date
2011 actual
5
Monthly Financial Report February 2012
Note: 2012 actuals includes two one-time correcting adjustments totaling $94,000 by Washington State Department of Revenue.
Accounting for this correction, February sales taxes would have totaled $2,298,441, or 1.5% less than the same period 2011.
Utility Taxes consists of City inter-fund utility taxes (Water, Sewer, Storm and Solid Waste) and
external utility taxes (Electric, Natural gas, Telephone and Solid Waste). February collections
totaled $1.9 million and are on-target with expectations.
The following table presents utility tax collections by source:
Cable TV Franchise Fees remain unchanged as these fees are collected quarterly. To-date,
collections are above budget and similar to 2011 collection levels. This revenue source is likely to
outperform budget by the end of 2012 and end at levels similar to the previous year.
2011 2012
Component Group Actual Actual Amount Percentage
New Construction 225,397 212,148 (13,249) -5.9%
Manufacturing 153,306 9,897 (143,409) -93.5%
Transportation & Warehousing 12,804 7,809 (4,995) -39.0%
Wholesale Trade 206,041 215,398 9,357 4.5%
Automotive 436,051 461,993 25,942 5.9%
Retail Trade 800,593 790,290 (10,303) -1.3%
Services 487,324 500,034 12,710 2.6%
Miscellaneous 12,300 6,887 (5,413) -44.0%
YTD Total 2,333,816 2,204,456 (129,360) -5.5%
Change from 2011
Year to Date through February
Comparison of Sales Tax Collections by SIC Group
$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 Dec
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Utility Tax
2012 budget
2012 actual to date
2011 actual
2011 2012 2012
Month Actual Budget Actual Amount Percentage Amount Percentage
City Interfund Utility Taxes 388,246 410,200 418,759 30,513 7.9%8,559 2.1%
Electric 789,549 826,000 812,586 23,037 2.9%(13,414) -1.6%
Natural Gas 268,472 321,500 295,289 26,817 10.0%(26,211) -8.2%
Telephone 375,567 352,100 359,943 (15,624) -4.2%7,843 2.2%Solid Waste 31,697 27,600 12,381 (19,316) -60.9%(15,219) -55.1%
YTD Total 1,853,532 1,937,400 1,898,958 45,426 2.5%(38,442) -2.0%
Annual Total 8,890,614 9,353,420
Year to Date through February
Utility Tax by Type
2012 vs. 2011 2012 vs. Budget
6
Monthly Financial Report February 2012
Licenses and Permits include business licenses, building permits, plumbing, electric and other
licenses and permit fees. Building permit fees and Business licenses make up 80% of the annual
budgeted revenue in this category.
Total building permit revenues at the end of February were $156,000 and was ahead of both
budget and prior year levels. The increase in February is primarily due to permits related to
developments at Kendall Ridge.
Business License revenues totaled $89,780 and exceed budget, due to the timing of payments.
The revenue for the year is billed out late in December and most payments are received between
January and February.
$0
$100
$200
$300
$400
$500
$600
$700
$800
$900
1st Quarter 2nd Quarter 3rd Quarter 4th Quarter
Th
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Cable TV Franchise Fee
2012 budget
2012 actual to date
2011 actual
$0
$200
$400
$600
$800
$1,000
$1,200
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Th
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Building Permits
2012 budget
2012 actual to date
2011 actual
7
Monthly Financial Report February 2012
Intergovernmental include Grants (Direct & Indirect Federal, State and Local); State shared
revenues and compact revenue from the Muckleshoot Indian Tribe. February collections were
below budget due primarily to the timing of reimbursements from the Muckleshoot Casino for
public safety services.
State shared revenues totaled $210,000. The 2012 budget for the Motor Vehicle Fuel Tax has
not yet been adjusted to reflect the change in revenue recognition to the Arterial Street fund and
Recreational Trails fund. This adjustment will be included in the next budget adjustment
ordinance to the City Council.
$0
$50
$100
$150
$200
$250
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Th
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Business Licenses
2012 budget
2012 actual to date
2011 actual
2011 2012 2012
Revenue Actual Budget Actual % Change % Change
Federal Grants 100 600 - N/A -100.0%
State Grants - - - N/A 0.0%
Interlocal Grants 8,334 7,500 2,500 -70.0%-66.7%
State Shared Revenue 371,600 369,500 301,665 -18.8%-18.4%
Muckleshoot Casino Emerg.335,525 352,600 163,281 -51.3%-53.7%
Intergovernmental Service 11,000 - - -100.0%N/A
YTD Total 726,559 730,200 467,446 -35.7%-36.0%
Annual Total 3,432,394 3,756,285
YTD %21%19%12%
Year to Date through February
Intergovernmental
2012 vs. 2011 2012 vs. Budget
8
Monthly Financial Report February 2012
Charges for Services consists of general governmental services, public safety, development service
fees and cultural & recreation fees. Development services and culture & recreation revenues make
up approximately 80% of revenue for this category. Revenues in this category total $321,000
and are above budget due primarily to stronger revenues from development plan-check fees,
offsetting lower than expected revenue from recreation classes.
Culture & Recreation revenues totaled $114,000 and consist of theater ticket sales, recreational
classes, arts commission and senior citizen program fees. Collections are comparable to 2011
levels and are running below budget due to lower revenue from adult health & fitness classes and
afterschool programs.
2011 2012 2012
Revenue Actual Budget Actual Amount Percentage Amount Percentage
Trial Court Improvements - 3,100 5,658 5,658 N/A 2,558 N/A
Court Interpreter Program - - - - N/A - N/A
Motor Vehicle Fuel Tax 231,715 241,500 156,793 (74,922) -32.3%(84,707) -35.1%
Criminal Justice -High Crime 37,353 - 35,698 (1,655) -4.4%35,698 N/A
Criminal Justice -Population 3,817 25,100 3,884 67 1.8%(21,216) -84.5%
Criminal Justice -Spec. Prog.14,412 13,800 14,657 245 1.7%857 6.2%
State DUI 3,107 1,600 3,389 282 9.1%1,789 111.8%
Fire Insurance Premium Tax - - - - N/A - N/A
Liquor Excise Tax 81,197 84,400 81,587 390 0.5%(2,813) -3.3%
Liquor Profits - - - - N/A - N/A
YTD Total 371,600 369,500 301,665 (69,935) -18.8%(67,835) -18.4%
Annual Total 2,073,650 2,540,130
Year to Date through February
State Shared Revenues
2012 vs. 2011 2012 vs. Budget
2011 2012 2012
Revenue Actual Budget Actual Amount Percentage Amount Percentage
General Government 13,019 11,500 18,863 5,844 44.89%7,363 64.02%
Public Safety 42,781 39,100 39,657 (3,124) -7.3%557 1.4%
Development Services 60,195 80,000 148,307 88,113 146.4%68,307 85.4%
Culture & Recreation 100,548 124,100 114,137 13,589 13.5%(9,963) -8.0%
YTD Total 216,543 254,700 320,965 104,421 48.2%66,265 26.0%
Annual Total 1,651,371 1,835,100
Year to Date through February
Charges for Services by Type
2012 vs. 2011 2012 vs. Budget
$0
$100
$200
$300
$400
$500
$600
$700
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
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Development Service Fees
2012 budget
2012 actual to date
2011 actual
9
Monthly Financial Report February 2012
Fines & Penalties totaled $278,000 and compare to budget of $472,000. Financial performance
is below budget due to lower photo enforcement revenues and non-court fines and penalties.
This category includes traffic and parking infraction penalties, criminal (traffic, non traffic and
costs) and false alarm fines.
$0
$100
$200
$300
$400
$500
$600
$700
$800
$900
$1,000
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
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Culture & Recreation
2012 budget
2012 actual to date
2011 actual
2011 2012 2012
Month Actual Budget Actual Amount Percentage Amount Percentage
Civil Penalties 2,789 2,500 2,440 (349) -12.5%(60) -2.4%
Civil Infraction Penalties 110,416 101,500 117,577 7,162 6.5%16,077 15.8%
Red Light Photo Enforcement 167,592 239,900 100,944 (66,648) -39.8%(138,956) -57.9%Parking Infractions 29,001 28,800 18,497 (10,504) -36.2%(10,303) -35.8%
Criminal Traffic Misdemeanor 16,269 19,100 19,047 2,778 17.1%(53) -0.3%
Criminal Non-Traffic Fines 13,795 15,300 14,343 548 4.0%(957) -6.3%Criminal Costs 3,267 2,300 2,824 (443) -13.6%524 22.8%
Non-Court Fines & Penalties 79,462 63,000 2,112 (77,350) -97.3%(60,888) -96.6%
YTD Total 422,590 472,400 277,784 (144,806) -34.3%(194,616) -41.2%
Annual Total 1,940,326 2,208,500
Year to Date through February
Fines & Forfeits by Type
2012 vs. 2011 2012 vs. Budget
10
Monthly Financial Report February 2012
Miscellaneous revenues include interest and other investment earnings, rents, leases &
concessions, contributions & donations and other miscellaneous income. February revenues in
this category totaled $71,000 and are below budget, due primarily to the timing of revenues
from rents and leases and investment income.
$0.0
$0.5
$1.0
$1.5
$2.0
$2.5
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
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Fines & Penalties
2012 budget
2012 actual to date
2011 actual
$0.0
$0.2
$0.4
$0.6
$0.8
$1.0
$1.2
$1.4
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
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Photo Enforcement
2012 budget
2012 actual to date
2011 actual
2011 2012 2012
Month Actual Budget Actual Amount Percentage Amount Percentage
Interest & Investments 12,222 18,100 10,582 (1,639) -13.4%(7,518) -41.5%
Rents & Leases 103,952 67,300 43,995 (59,957) -57.7%(23,305) -34.6%Contributions & Donations 3,462 1,700 4,838 1,376 39.8%3,138 184.6%
Other Miscellaneous Revenue 9,283 5,300 11,677 2,394 25.8%6,377 120.3%
YTD Total 128,918 92,400 71,092 (57,825) -44.9%(21,308) -23.1%
Annual Total 649,927 492,700
Miscellaneous Revenues by Type
Year to Date through February
2012 vs. 2011 2012 vs. Budget
11
Monthly Financial Report February 2012
Real Estate Excise Tax (REET) revenue is received into the Capital Improvement Projects Fund
and is used for governmental capital projects. Revenue at the end of February totaled $217,000,
and is exceeding budget and prior year performance.
$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 Dec
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Real Estate Excise Tax
2012 budget
2012 actual to date
2011 actual
12
Monthly Financial Report February 2012
Enterprise Funds
The following table provides an analysis of all City Enterprise funds through February 2012.
Water Sewer Storm Solid Waste Airport Cemetery Golf
OPERATING REVENUES
Charges for services 1,352,637 739,853 1,201,270 1,859,470 2,614 131,496 58,721
Sewer Metro Service Revenue - 2,130,971 - - - - -
Rents, Leases, Concessions & Other - - - - 102,950 293 12,931
TOTAL OPERATING REVENUES 1,352,637 2,870,824 1,201,270 1,859,470 105,564 131,789 71,652
OPERATING EXPENSES:
Administration 400,322 321,831 389,130 123,170 118,946 47,306 36,999
Operations & Maintenance 558,767 405,994 412,464 141,301 - 94,956 171,726
Waste Management Payments - - - 716,782 - - -
Sewer Metro Services - 2,089,194 - - - - -
Depreciation & Amortization 365,035 302,183 212,770 3,137 64,624 9,889 52,732
TOTAL OPERATING EXPENSES 1,324,124 3,119,202 1,014,364 984,390 183,570 152,151 261,457
OPERATING INCOME (LOSS)28,513 (248,378) 186,906 875,080 (78,006) (20,362) (189,805)
NON-OPERATING REVENUES & EXPENSES
Interest Revenue 3,509 2,138 2,034 81 247 20 77
Other Non Operating Revenue 441 330 1,854 440 95 - -
Other Non Operating Expense - - - - - - -
TOTAL NON-OPERATING REVENUES (EXPENSES)3,950 2,468 3,888 521 342 20 77
32,463 (245,910) 190,794 875,601 (77,664) (20,342) (189,728)
Contributions 39,608 27,056 32,560 - - - -
Transfers In - - - - - - 2,353
Transfers Out (50,000) (50,000) (50,000) - - - -
TOTAL CONTRIBUTIONS & TRANSFERS (10,392) (22,944) (17,440) - - - 2,353
CHANGE IN FUND BALANCE 22,071 (268,854) 173,354 875,601 (77,664) (20,342) (187,375)
BEGINNING FUND BALANCE, January 1, 2012 63,028,695 73,274,006 47,772,204 760,681 9,731,158 814,709 5,144,962
ENDING FUND BALANCE, February 29, 2012 63,050,766 73,005,152 47,945,558 1,636,282 9,653,494 794,367 4,957,587
INCOME (LOSS) BEFORE CONTRIBUTIONS &
TRANSFERS
13
Monthly Financial Report February 2012
The following table presents the Enterprise funds working capital statements. Working capital is
generally defined as the difference between current assets and current liabilities.
Water Sewer Storm Solid Waste Airport Cemetery Golf
OPERATING REVENUES
Charges for services 1,352,637 739,853 1,201,270 1,859,470 2,614 131,496 58,721
Sewer Metro Service Revenue - 2,130,971 - - - - -
Rents, Leases, Concessions & Other - - - - 102,950 293 12,931
TOTAL OPERATING REVENUES 1,352,637 2,870,824 1,201,270 1,859,470 105,564 131,789 71,652
OPERATING EXPENSES:
Salaries & Wages 343,359 233,824 304,387 71,083 3,179 71,741 86,869
Benefits 150,174 98,930 132,494 30,799 1,072 37,355 43,727
Supplies 25,392 7,513 5,256 458 - 11,380 29,777
Other Service Charges 267,843 256,705 137,584 131,381 114,695 10,768 21,350
Intergovernmental Services - - - - - - -
Waste Management Payments - - - 716,782 - - -
Sewer Metro Services - 2,089,194 - - - - -
Interfund Operating Rentals/Supplies 172,321 130,853 221,873 30,750 - 11,018 27,002
Depreciation & Amortization 365,035 302,183 212,770 3,137 64,624 9,889 52,732
TOTAL OPERATING EXPENSES 1,324,124 3,119,202 1,014,364 984,390 183,570 152,151 261,457
OPERATING INCOME (LOSS)28,513 (248,378) 186,906 875,080 (78,006) (20,362) (189,805)
NON-OPERATING REVENUES & EXPENSES
Interest Revenue 3,509 2,138 2,034 81 247 20 77
Other Non Operating Revenue 441 330 1,854 440 95 - -
Other Non Operating Expense - - - - - - -
TOTAL NON-OPERATING REVENUES (EXPENSES)3,950 2,468 3,888 521 342 20 77
Plus Items Not Effecting Working Capital
Depreciation 365,035 302,183 212,770 3,137 64,624 9,889 52,732
397,498 56,273 403,564 878,738 (13,040) (10,453) (136,996)
Increase in Contributions -System Development 39,608 27,056 32,560 - - - -
Increase in Contributions -Area Assessments - - - - - - -
Increase in Contributions -FAA Grants - - - - - - -
Increase in Contributions -KC Flood Zone Dist.- - - - - - -
Operating Transfers In - - - - - - 2,353
Increase in Restricted Net Assets 2,752 - - - (2,087) -
Decrease in Long term Receivables - - - - - - -
Increase in Deferred Credits - - - - (8,479) - -
TOTAL RESOURCES OTHER THAN OPERATIONS 42,360 27,056 32,560 - (10,566) - 2,353
Net Change in Restricted Net Assets 266 92 187 - (1,998) - 2,085
Increase in Fixed Assets - Salaries 23,658 20,278 4,835 - - - -
Increase in Fixed Assets - Benefits 9,548 7,293 2,295 - - - -
Increase in Fixed Assets - Site Improvements 12,687 - - - - - -
Increase in Fixed Assets - Equipment - - - - - - -
Increase in Fixed Assets - Construction 135,321 92,595 38,977 - - - -
Operating Transfers Out 50,000 50,000 50,000 - - - -
Debt Service Principal - - - - - - -
TOTAL USES OTHER THAN OPERATIONS 231,480 170,258 96,294 - (1,998) - 2,085
NET CHANGE IN WORKING CAPITAL 208,378 (86,929) 339,830 878,738 (21,608) (10,453) (136,728)
BEGINNING WORING CAPITAL, January 1, 2012 16,945,811 12,806,527 9,102,000 632,263 961,633 71,820 68,320
ENDING WORKING CAPITAL, February 29, 2012 17,154,189 12,719,598 9,441,830 1,511,001 940,025 61,367 (68,408)
NET CHANGE IN WORKING CAPITAL 208,378 (86,929) 339,830 878,738 (21,608) (10,453) (136,728)
NET WORKING CAPITAL FROM OPERATIONS
14
Monthly Financial Report February 2012
The Water Utility ended February at break-even and compares to a $53,000 net operating loss
for the same period last year, reflecting an improvement in water sales and a slight improvement
in water consumption.
The Sewer utility ended February with a $248,000 operating loss, comparable to 2011 when it
ended with an operating loss of $262,000. Year-to-date Metro billings totaled $2.1 million and
were sufficient to meet Metro payments. The Stormwater utility ended February with $187,000
in operating income as compared to a $137,000 operating income in 2011.
A rate study is currently underway to evaluate the revised rate revenue requirements for the
water, sewer, and stormwater utilities. Results of the rate study will be reviewed with the
Council during the first quarter 2012.
Financial performance for the Auburn Golf Course was nearly unchanged over the previous year.
The Golf Course ended February with a net operating loss of $190,000 as compared to an
operating loss of $183,000 for the same period 2011. The financial performance for the Golf
Course is expected to improve with the spring and summer period.
-
200,000
400,000
600,000
800,000
1,000,000
1,200,000
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Water Revenues ($) vs Water Sold (ccf)
2011 -Present
2011 Water Sales ($)
2012 Water Sales ($)
2011 Water Sold (ccf)
2012 Water Sold (ccf)
$0
$50
$100
$150
$200
$250
$300
$350
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Th
o
u
s
a
n
d
s
Golf Course Operating Revenues by Month
(2012 vs 2011)
2012 Monthly Budget
2012 Actual
2011 Actual
15
Monthly Financial Report February 2012
The Cemetery Fund ended February with a $20,000 operating loss as compared to an operating
loss of $34,000 for the previous year, reflecting an increase in lot sales in February 2011.
$0
$20
$40
$60
$80
$100
$120
$140
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Th
o
u
s
a
n
d
s
Cemetery Operating Revenues by Month
(2011 vs 2010)
2012 Monthly Budget
2012 Actual
2011 Actual
16
Monthly Financial Report February 2012
Internal Service Funds
The table below provides an analysis of all City Internal Service funds and shows 2012 revenues
and expenditures for each fund.
Information Equipment
Insurance Facilities Services Rental
OPERATING REVENUES:
Interfund Charges for services - 567,911 689,184 114,517
Rents, Leases, Concessions & Other - 27,130 13,451 387,250
TOTAL OPERATING REVENUES - 595,041 702,635 501,767
OPERATING EXPENSES:
Administration - - 126,034 114,075
Insurance fund -Unemployment Claims - - - -
Operations & Maintenance 899,683 351,499 684,168 228,100
Depreciation & Amortization - - 92,997 121,683
TOTAL OPERATING EXPENSES 899,683 351,499 903,199 463,858
OPERATING INCOME (LOSS)(899,683) 243,542 (200,564) 37,909
NON-OPERATING REVENUES & EXPENSES
Interest Revenue 275 421 706 832
Other Non Operating Revenue (sale of fixed asset)- - - 30,472
Other Non Operating Expense - - - -
TOTAL NON-OPERATING REVENUES (EXPENSES)275 421 706 31,304
INCOME (LOSS) BEFORE CONTRIBUTIONS & TRANSFERS (899,408) 243,963 (199,858) 69,213
Contributions - - - -
Transfers In - - - -
Transfers Out - - - (7,000)
TOTAL CONTRIBUTIONS & TRANSFERS - - - (7,000)
CHANGE IN FUND BALANCE (899,408) 243,963 (199,858) 62,213
BEGINNING FUND BALANCE, January 1, 2012 2,184,680 1,570,419 4,350,183 10,135,919
ENDING FUND BALANCE, February 29, 2012 1,285,272 1,814,382 4,150,325 10,198,132
17
Monthly Financial Report February 2012
The working capital statements for the Internal Service funds are presented on the table below.
Other services and charges within the Insurance Fund represent the premium cost-pool that will
be allocated monthly to other City funds over the course of 2012. As a result, this balance will
gradually diminish each month through December. The Information Services Fund ended
February with an operating loss, reflecting the timing of expenditures. No significant variances
are reported for the Facilities Fund and Equipment Rental Fund. Both funds had sufficient
revenues to cover expenses during February.
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 the report please
contact us at mchaw@auburnwa.gov or scoleman@auburnwa.gov.
Information Equipment
Insurance Facilities Services Rental
OPERATING REVENUES:
Interfund Charges for services - 567,911 689,184 114,517
Rents, Leases, Concessions & Other - 27,130 13,451 387,250
TOTAL OPERATING REVENUES - 595,041 702,635 501,767
OPERATING EXPENSES:
Salaries & Wages - 108,102 216,999 70,584
Benefits - 47,279 90,471 27,520
Supplies - 9,977 44,845 146,321
Other Service Charges 899,683 169,825 409,707 62,125
Interfund Operating Rentals/Supplies - 16,316 48,180 35,625
Depreciation & Amortization - - 92,997 121,683
TOTAL OPERATING EXPENSES 899,683 351,499 903,199 463,858
OPERATING INCOME (LOSS)(899,683) 243,542 (200,564) 37,909
NON-OPERATING REVENUES & EXPENSES
Interest Revenue 275 421 706 832
Other Non Operating Revenue (sale of fixed asset)- - - 30,472
Other Non Operating Expense - - - -
TOTAL NON-OPERATING REVENUES (EXPENSES)275 421 706 31,304
Plus Items Not Effecting Working Capital
Depreciation - - 92,997 121,683
(899,408) 243,963 (106,861) 190,896
Increase in Contributions -Other Government - - - -
Increase in Contributions -Other Funds - - -
TOTAL RESOURCES OTHER THAN OPERATIONS - - - -
Net Change in Restricted Net Assets - - - -
Increase in Fixed Assets - Equipment - - 17,647 277,345
Increase in Fixed Assets - Construction - - - -
Operating Transfers Out - - - 7,000
TOTAL USES OTHER THAN OPERATIONS - - 17,647 284,345
NET CHANGE IN WORKING CAPITAL (899,408) 243,963 (124,508) (93,449)
BEGINNING WORING CAPITAL, January 1, 2012 2,184,680 1,622,449 3,118,686 5,793,165
ENDING WORKING CAPITAL, February 29, 2012 1,285,272 1,866,412 2,994,178 5,699,716
NET CHANGE IN WORKING CAPITAL (899,408) 243,963 (124,508) (93,449)
NET WORKING CAPITAL FROM OPERATIONS
18
SALES TAX SUMMARY
FEBRUARY 2012 SALES TAX DISTRIBUTIONS (FOR NOVEMBER - DECEMBER 2011 RETAIL ACTIVITY)
2011 Annual Total 2011 YTD 2012 YTD YTD 2011 Annual Total 2011 YTD 2012 YTD YTD
NAICS CONSTRUCTION (Nov '10-Oct '11)(Nov '10-Dec '10)(Nov '11-Dec '11)% Diff NAICS AUTOMOTIVE (Nov '10-Oct '11)(Nov '10-Dec '10)(Nov '11-Dec '11)% Diff
236 Construction of Buildings 582,840 91,676 81,952 -10.6%441 Motor Vehicle and Parts Dealer 2,560,962 399,779 424,631 6.2%
237 Heavy and Civil Construction 108,727 17,549 26,097 48.7%447 Gasoline Stations 224,459 36,272 37,362 3.0%
238 Specialty Trade Contractors 604,245 116,172 104,099 -10.4%TOTAL AUTOMOTIVE 2,785,421$ 436,051$ 461,993$ 5.9%
TOTAL CONSTRUCTION 1,295,813$ 225,397$ 212,148$ -5.9%Overall Change from Previous Year 25,942$
Overall Change from Previous Year (13,250)$
2011 Annual Total 2011 YTD 2012 YTD YTD
2011 Annual Total 2011 YTD 2012 YTD YTD NAICS RETAIL TRADE (Nov '10-Oct '11)(Nov '10-Dec '10)(Nov '11-Dec '11)% Diff
NAICS MANUFACTURING (Nov '10-Oct '11)(Nov '10-Dec '10)(Nov '11-Dec '11)% Diff 442 Furniture and Home Furnishings 218,335 39,742 45,362 14.1%
311 Food Manufacturing 2,674 370 708 91.3%443 Electronics and Appliances 126,870 26,642 32,694 22.7%
312 Beverage and Tobacco Products 3,864 772 772 0.0%444 Building Material and Garden 382,504 54,616 59,716 9.3%
313 Textile Mills 959 42 24 -43.6%445 Food and Beverage Stores 330,776 60,402 57,374 -5.0%
314 Textile Product Mills 2,625 344 484 40.7%446 Health and Personal Care Store 148,387 30,279 31,881 5.3%315 Apparel Manufacturing 2,519 2,294 149 -93.5%448 Clothing and Accessories 754,407 168,590 168,950 0.2%
316 Leather and Allied Products 175 6 36 542.7%451 Sporting Goods, Hobby, Books 126,042 30,862 29,870 -3.2%
321 Wood Product Manufacturing 24,075 3,839 3,223 -16.0%452 General Merchandise Stores 967,627 236,144 223,261 -5.5%
322 Paper Manufacturing 11,026 1,998 606 -69.6%453 Miscellaneous Store Retailers 489,259 95,919 83,878 -12.6%
323 Printing and Related Support 38,511 8,059 6,162 -23.5%454 Nonstore Retailers 235,923 57,397 57,305 -0.2%324 Petroleum and Coal Products 9,771 410 1,413 245.1%TOTAL RETAIL TRADE 3,780,129$ 800,593$ 790,290$ -1.3%
325 Chemical Manufacturing 7,937 952 899 -5.5%Overall Change from Previous Year (10,303)$
326 Plastics and Rubber Products 9,777 1,381 1,907 38.1%
327 Nonmetallic Mineral Products 16,218 2,021 2,478 22.6%
331 Primary Metal Manufacturing 452 22 435 1890.8%2011 Annual Total 2011 YTD 2012 YTD YTD332Fabricated Metal Product Manuf 19,661 2,790 2,003 -28.2%NAICS SERVICES (Nov '10-Oct '11)(Nov '10-Dec '10)(Nov '11-Dec '11)% Diff
333 Machinery Manufacturing 14,242 2,455 1,965 -19.9%51*Information 481,043 68,776 65,882 -4.2%334 Computer and Electronic Produc 16,776 2,943 844 -71.3%52*Finance and Insurance 65,518 11,487 (6,861) b -159.7%
335 Electric Equipment, Appliances 780 21 164 676.3%53*Real Estate, Rental, Leasing 303,750 48,038 62,860 30.9%
336 Transportation Equipment Man 362,149 115,206 (20,287) a -117.6%541 Professional, Scientific, Tech 174,718 33,616 34,206 1.8%
337 Furniture and Related Products 13,135 1,748 1,789 2.3%551 Company Management 351 36 4 -90.0%
339 Miscellaneous Manufacturing 25,531 5,635 4,122 -26.8%56*Admin. Supp., Remed Svcs 294,603 43,952 42,152 -4.1%
TOTAL MANUFACTURING 582,858$ 153,306$ 9,897$ -93.5%611 Educational Services 52,563 4,718 5,178 9.7%
Overall Change from Previous Year (143,409)$ 62*Health Care Social Assistannce 40,737 5,180 9,891 90.9%
71*Arts and Entertainment 148,629 64,463 65,193 1.1%
72*Accomodation and Food Svcs 838,924 128,484 144,224 12.3%
2011 Annual Total 2011 YTD 2012 YTD YTD 81*Other Services 389,241 65,007 64,575 -0.7%
NAICS TRANSPORTATION AND WAREHOUSING (Nov '10-Oct '11)(Nov '10-Dec '10)(Nov '11-Dec '11)% Diff 92*Public Administration 92,163 13,566 12,731 -6.2%
481 Air Transportation 24 24 - -100.0%TOTAL SERVICES 2,882,241$ 487,324$ 500,034$ 2.6%482 Rail Transportation 17,831 7,120 1,627 -77.1%Overall Change from Previous Year 12,709$
484 Truck Transportation 36,261 1,506 1,845 22.5%
485 Transit and Ground Passengers 68 39 212 448.4%
488 Transportation Support 18,083 2,887 2,852 -1.2%2011 Annual Total 2011 YTD 2012 YTD YTD
491 Postal Service 202 47 46 -1.1%NAICS MISCELLANEOUS (Nov '10-Oct '11)(Nov '10-Dec '10)(Nov '11-Dec '11)% Diff
492 Couriers and Messengers 1,492 522 108 -79.4%000 Unknown 1,958 - - N/A
493 Warehousing and Storage 3,121 659 1,119 69.7%111-115 Agriculture, Forestry, Fishing 7,355 1,149 264 -77.1%
TOTAL TRANSPORTATION 77,083$ 12,804$ 7,809$ -39.0%211-221 Mining & Utilities 21,830 2,187 3,596 64.4%
Overall Change from Previous Year (4,994)$ 999 Unclassifiable Establishments 192,496 8,964 3,027 -66.2%
TOTAL SERVICES 223,639$ 12,300$ 6,887$ -44.0%
Overall Change from Previous Year (5,414)$
2011 Annual Total 2011 YTD 2012 YTD YTD
NAICS WHOLESALE TRADE (Nov '10-Oct '11)(Nov '10-Dec '10)(Nov '11-Dec '11)% Diff
423 Wholesale Trade, Durable Goods 1,095,905 182,046 192,995 6.0%GRAND TOTAL 12,887,267$ 2,333,816$ 2,204,455$ 424 Wholesale Trade, Nondurable 150,480 23,484 21,544 -8.3%Overall Change from Previous Year (129,361)$ -5.5%
425 Wholesale Electronic Markets 13,698 510 859 68.5%
TOTAL WHOLESALE 1,260,083$ 206,041$ 215,398$ 4.5%
Overall Change from Previous Year 9,357$
a. Wa. State Dept of Revenue audit adjustment to sales tax returns for period Nov 2011 (adjustment: -$73,971).
a. Wa. State Dept of Revenue audit adjustment to sales tax returns for period Dec 2011 (adjustment: -$20,014).
02/23/12 file:Monthly Sales Tax Report.xls
Prepared by Auburn Financial Planning
19
Investment Purchase Purchase Maturity Yield to
Type Date Price Date Maturity
State Investment Pool Various 79,107,271$ Various 0.14%
KeyBank Money Market Various 9,080,959 Various 0.15%
US Treasury 05/04/1990 57,750 05/15/2016 5.72%
FHLB 3/28/2011 2,000,000 3/28/2014 1.300%
FFCB 6/6/2011 2,000,000 6/6/2014 1.180%
FHLB 6/13/2011 2,000,000 6/13/2014 1.150%
FHLMC 12/19/2011 2,000,000 12/19/2014 1.000%
FNMA 12/29/2011 2,000,000 12/29/2014 0.900%
Total Cash & Investments 98,245,980$ 0.242%
Investment Mix % of Total
State Investment Pool 80.5%Current 6-month treasury rate 0.12%
KeyBank Money Market 9.2%Current State Pool rate 0.14%
US Treasury 0.1%KeyBank Money Market 0.15%
FHLB 4.1%Blended Auburn rate 0.24%
FFCB 2.0%
FHLMC 2.0%
FNMA 2.0%
100.0%
City of Auburn
Investment Portfolio Summary
February 29,2012
Summary
20