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HomeMy WebLinkAboutMay 2012 AGENDA BILL APPROVAL FORM Agenda Subject: May 2012 Financial Report Date: 07/11/2012 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 May status report is based on financial data available as of June 22, 2012. Sales tax information represents business activity that occurred in March 2012. 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. Year-to-date General Fund revenues were sufficient to support expenditures with financial performance substantially unchanged from the same period last year, reflecting continued consumer concerns over the state of the economy, unemployment, and economic conditions in Europe and Asia. As of the end of May, the unemployment rate in Washington State was 8.3% and 6.9% in King County and compare to the national unemployment rate of 8.2%1. General fund revenue collections totaled $23.0 million and compare to budget-to-date of $22.4 million and collections of $23.2 million for the same period previous year. Tax revenues, the largest category of revenue within the General Fund, totaled $19.1 million and compare to collections of $18.9 million for the same period last year. General Fund expenses totaled $19.5 million and compare to budget of $21.0 million and expenditures of $19.6 million for the same period last year. 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 May, the Water fund ended with a slight operating loss of $91,000; the Sewer fund ended this period with a $622,000 operating loss; and the Stormwater fund ended with an operating income of $395,000. The Golf Course ended the period with an operating loss of $321,000. Financial performance for the Auburn Golf Course is expected to improve as play increases with better weather during the spring and summer months. Cemetery revenues at the end of May totaled $307,000 and were below expenses of $394,000. 1 Source: Washington State Employment Security Department and US Bureau of Labor Statistics. 1 Agenda Subject: May 2012 Financial Report Date: 7/11/2012 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 May was $101.7 million and compare to $99.4 million the previous month. 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: July 16, 2012 Item Number: 2 Monthly Financial Report May 2012 General Fund 2011 Summary of Sources and Uses Annual BudgetYTD BudgetYTD ActualYTD ActualAmountPercentage OPERATING REVENUES Property Tax 12,562,565 6,497,800 6,622,094 6,522,132 124,294 1.9% Sales Tax (1)14,227,000 5,925,600 5,944,068 6,084,272 18,468 0.3% Sales Tax - Annexation Credit 1,383,730 557,730 606,446 595,853 48,716 8.7% Criminal Justice Sales Tax 1,212,900 503,300 561,206 556,090 57,906 11.5% Brokered Natural Gas Tax 260,000 141,700 181,661 168,114 39,961 28.2% City Utilities Tax 2,620,200 1,041,200 1,075,831 966,514 34,631 3.3% Admissions Tax 360,000 132,600 125,545 121,946 (7,055) -5.3% Electric Tax 3,275,000 1,756,300 1,729,940 1,678,394 (26,360) -1.5% Natural Gas Tax 1,295,820 836,100 747,170 728,141 (88,930) -10.6% Cable TV Franchise Fee 703,600 352,200 400,941 403,943 48,741 13.8% Cable TV Franchise Fee - Capital 75,000 36,600 31,508 31,983 (5,092) -13.9% Telephone Tax 2,012,400 875,300 905,627 883,105 30,327 3.5% Garbage Tax (external)150,000 59,700 53,946 56,183 (5,754) -9.6% Leasehold Excise Tax 50,000 13,000 10,067 12,346 (2,933) N/A Gambling Excise Tax 331,500 (1) The anticipated Streamlined Sales Tax for 2012 is $2 million. The year to date actual Sales Tax amount is adjusted to include $833,686 Streamlined Sales Tax Mitigation received from the State through the month of May. 191,400 128,226 117,576 (63,174) -33.0% Taxes sub-total 40,519,715 18,920,530 19,124,276 18,926,591 203,746 1.1% Business License Fees 200,000 56,300 115,119 103,219 58,819 104.5% Building Permits 700,000 255,800 491,218 362,422 235,418 92.0% Other Licenses & Permits 229,000 84,300 128,735 136,352 44,435 52.7% Intergovernmental (Grants, etc)3,357,333 1,393,760 1,311,889 1,643,674 (81,871) -5.9% Charges for Services: General Government Services 64,600 27,200 54,720 35,968 27,520 101.2% Public Safety 223,500 96,900 99,362 101,423 2,462 2.5% Development Services Fees 627,000 209,800 367,465 179,743 157,665 75.2% Culture and Recreation 920,000 424,100 394,701 369,066 (29,399) -6.9% Fines and Forfeits 1,499,900 711,800 699,513 936,814 (12,287) -1.7% Fees/Charges/Fines sub-total 7,821,333 3,259,960 3,662,723 3,868,681 402,763 12.4% Interests and Other Earnings 115,000 46,700 28,334 28,537 (18,366) -39.3% Rents, Leases and Concessions 311,000 138,600 118,376 168,235 (20,224) -14.6% Contributions and Donations 20,500 6,600 22,089 16,128 15,489 234.7% Other Miscellaneous 46,200 25,000 30,819 26,967 5,819 23.3% Transfers In 17,000 17,000 17,000 78,439 - 0.0% Insurance Recoveries- Capital & Operating 50,000 18,158 41,262 70,899 23,104 127.2% Other Revenues sub-total 559,700 252,058 257,880 389,206 5,822 2.3% Total Operating Revenues 48,900,748 22,432,548 23,044,879 23,184,478 612,331 2.7% Operating Expenditures Council & Mayor 869,890 358,990 373,733 312,271 (14,743) -4.1% Municipal Court & Probation 3,399,260 1,302,860 1,222,290 1,175,334 80,570 6.2% Human Resources 942,164 376,700 333,941 321,988 42,759 11.4% Finance 1,235,590 551,000 453,121 509,974 97,879 17.8% City Attorney 1,699,500 765,100 615,486 681,066 149,614 19.6% Planning 3,883,620 1,516,700 1,498,842 1,403,236 17,858 1.2% Community & Human Services 1,160,360 396,160 392,144 421,449 4,016 1.0% Jail - SCORE 4,764,750 1,888,850 1,780,751 1,869,665 108,099 5.7% Police 20,682,698 8,217,400 7,566,539 7,290,069 650,861 7.9% Engineering 2,718,870 880,770 811,752 907,455 69,018 7.8% Parks and Recreation 7,598,230 2,383,030 2,324,749 2,808,211 58,281 2.4% Streets 3,415,280 1,032,780 819,608 1,052,030 213,172 20.6% Non-Departmental 7,130,550 1,362,400 1,252,574 882,268 109,826 8.1% Total Operating Expenditures 59,500,762 21,032,740 19,445,529 19,635,015 1,587,211 7.5% 2012 2012 YTD Budget vs. Actual Favorable (Unfavorable) 3 Monthly Financial Report May 2012 Overview This financial overview reflects the City’s overall financial position for the fiscal period ending May 31, 2012 and represents financial data available as of June 22, 2012. The budgeted year-to- date revenues and operating expenses are based on the collection/disbursement average for the same period of the two prior years. General Fund revenues totaled $23.0 million and were above budget by 2.7%, or $612,000. This period’s highlights include: - Tax revenues totaled $19.1 million and were $204,000 above budget. - Sales taxes totaled $5.9 million and were on target with budget. - Revenue from Fees/Charges/Fines totaled $3.7 million and were $403,000 above budget due to stronger than budgeted revenue from development activity. - Other revenues totaled $258,000 and were 2.3% above budget. General Fund expenses totaled $19.5 million and were $1.6 million below budget and compared to expenses of $19.6 million for the same period last year. 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 additional information on these sources. Property Tax collections to date total $6.6 million and has returned to budgeted levels following the previous month’s performance due to timing of payments. 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. $0.0 JanFebMarAprMayJunJulAugSepOctNovDec $2.0 $4.0 $6.0 $8.0 $10.0 $12.0 $14.0 Mi l l i o n s Property Taxes 2012 budget 2012 actual to date 2011 actual 4 Monthly Financial Report May 2012 Sales taxes totaled $6.6 million and is on target with budget. Sales taxes include an estimate of $167,151 for May’s portion of the Streamlined Sales Tax Mitigation payments from the State of Washington. $0.0 $2.0 $4.0 $6.0 $8.0 $10.0 $12.0 $14.0 $16.0 JanFebMarApr MayJunJulAugSepOctNovDec Mi l l i o n s Sales & Use Tax 2012 budget 2012 actual to date 2011 actual 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. 20112012 Component GroupActualActualAmoun New Construction 489,132 455,332 (33,80 Manufacturing 265,221 126,714 (138,5 Transportation & Warehousing22,065 19,257 (2,8 Wholesale Trade 514,703 522,843 8,1 Automotive 1,099,474 1,181,603 82,1 Retail Trade 1,658,812 1,620,924 (37,88 Services 1,141,959 1,196,727 54,7 Miscellaneous 95,405 18,146 (77,2 Chan tPercentage 0)-6.9% 07)-52.2% 08)-12.7% 40 1.6% 29 7.5% 8)-2.3% 68 4.8% 59)-81.0% YTD Total 5,286,771 5,141,546 (145,225) -2.7% ge from 2011 Year to Date through May Comparison of Sales Tax Collections by SIC Group As shown above, sales taxes by business sector totaled $5.14 million and are 2.7% less than the same period last year due in part to two adjustments by the Washington State Department of Revenue that reduced the City’s sales taxes by $93,9851. 1 Wa. State Department of Revenue adjustments reduced sales taxes within the manufacturing and services sectors by $73,971 and $20,014, respectively. 5 Monthly Financial Report May 2012 $0.0 $1.0 $2.0 $3.0 $4.0 $5.0 $6.0 $7.0 $8.0 $9.0 $10.0 JanFebMa 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). Year-to-date collections totaled $4.5 million and is running slightly below budget. The following table presents utility tax collections by source: Cable TV Franchise Fees exceed budget by $44,000 and are tracking 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. r AprMayJunJulAugSepOctNovDec Mi l l i o n s Utility Tax 2012 budget 2012 actual to date 2011 actual 201120122012 Month ActualBudgetActualAmountPercentageAmo City Interfund Utility Taxes966,514 1,041,200 1,075,831 109,317 11.3%3 Electric 1,678,394 1,756,300 1,729,940 51,546 3.1%(2 Natural Gas 728,141 836,100 747,170 19,029 2.6%( Telephone 883,105 875,300 905,627 22,522 2.6%30 Solid Waste 56,183 59,700 53,946 (2,237) -4.0%( YTD Total 4,312,337 4,568,600 4,512,514 200,177 4.6%( Year to Date through May Utility Tax by Type 2012 vs. 201120 untPercentage 4,6313.3% 6,360)-1.5% 88,930)-10.6% ,327 3.5% 5,754)-9.6% 56,086)-1.2% Annual Total 8,890,614 9,353,420 12 vs. Budget 6 Monthly Financial Report May 2012 $0 $100 $200 $300 $400 $500 $600 $700 $800 $900 1st Quarter2nd Quarter3rd Quarter4th Quarter Th o u s a n d s Cable TV Franchise Fee 2012 budget 2012 actual to date 2011 actual 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. Building permit revenues were $491,000 and exceeded both budget and prior year levels of $256,000 and $362,000, respectively. Building permit activity has increased, reflecting the broader trend of increased construction activity in the region. $0 JanFebMarAprMayJunJulAugSepOctNovDec $200 $400 $600 $800 $1,000 $1,200 Th o u s a n d s Building Permits 2012 budget 2012 actual to date 2011 actual Business License revenues totaled $115,000 and exceeded 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. This revenue source is expected to level out for the remainder of the year until December when collections increase as payments for 2013 are received. 7 Monthly Financial Report May 2012 $0 $50 $100 $150 $200 $250 JanFebMarAprMayJunJulAugSepOctNovDec Th o u s a n d s Business Licenses 2012 budget 2012 actual to date 2011 actual Intergovernmental includes Grants (Direct & Indirect Federal, State and Local); State shared revenues and compact revenue from the Muckleshoot Indian Tribe. Collections totaled $1.3 million and is below budget due to the timing of anticipated distributions by the State of Washington from the sale of state owned liquor stores2. 20112012 2012 Revenue ActualBudgetActual% Change Federal Grants 119,676 155,700 128,802 7.6% State Grants 38,636 17,600 36,326 -6.0% Interlocal Grants 3,151 56,700 2,500 -20.7% State Shared Revenue1,084,600 957,060 794,536 -26.7% Muckleshoot Casino Emerg.385,731 386,700 345,875 -10.3% Intergovernmental Service11,880 - 3,850 -67.6% YTD Total 1,643,674 1,573,760 1,311,889 -20.2% Year to Date through May Intergovernmental 2012 vs. 2011 % Change -17.3% 0.0% -95.6% -17.0% -10.6% N/A -16.6% Annual Total 3,432,394 3,537,333 2012 vs. Budg et 2 The City of Auburn received $188,230 from the sale of State owned liquor stores in the month of June 2012 and will be reflected in next month’s monthly financial report. In addition, the City’s share of liquor excise taxes and liquor profits will be revised starting July 1. Liquor excise taxes will be suspended for a twelve month period and will be reinstated at a lowered level starting July 1, 2013 while liquor profits will be reduced to 2011 levels starting July 1. These changes were made as a result of the State Legislature’s effort to balance the State budget during the 2012 legislative session. 8 Monthly Financial Report May 2012 201120122012 Revenue ActualBudgetActualAmountPercentageAmountPercentage Trial Court Improvements 11,234 12,300 11,316 82 N/A(984) N/A Court Interpreter Program 6,643 6,960 10,872 4,229 N/A3,912 N/A Motor Vehicle Fuel Tax 586,091 380,300 388,328 (197,763) -33.7%8,028 2.1% Criminal Justice -High Crime75,325 - 71,399 (3,926) -5.2%71,399 N/A Criminal Justice -Population 7,690 47,300 7,766 76 1.0%(39,534) -83.6% Criminal Justice -Spec. Prog.29,045 27,600 29,308 263 0.9%1,708 6.2% State DUI 6,262 3,200 6,777 514 8.2%3,577 111.8% Fire Insurance Premium Tax 66,116 65,000 - (66,116) N/A(65,000) N/A Liquor Excise Tax 169,003 81,000 174,785 5,782 3.4%93,785 115.8% Liquor Profits 127,191 153,400 93,986 (33,205) -26.1%(59,414) N/A Liquor Store Closure Proceeds - 180,000 - - N/A(180,000) N/A YTD Total 1,084,600 957,060 794,536 (290,064) -26.7%(162,524) -17.0% Annual Total 2,073,650 2,060,690 Year to Date through May State Shared Revenues 2012 vs. 20112012 vs. Budget Charges for Services consists of general governmental services, public safety, development service fees and cultural & recreation fees and totaled $916,000. Development service fees and culture and recreation fees make up 81% of the revenue within this category. Development services revenues totaled $367,000 compared to budget of $210,000 due to stronger revenues from development plan-check fees. Culture and recreation fees are beginning to improve over 2011 levels, reflecting increased registrations for summer classes. 201120122012 Revenue ActualBudgetActualAmountPercentageAm General Government 35,968 27,200 54,720 18,752 52.13% Public Safety 101,423 96,900 99,362 (2,061) -2.0% Development Services179,743 209,800 367,465 187,722 104.4%157, Culture & Recreation369,066 424,100 394,701 25,635 6.9%( Year to Date through May Charges for Services by Type 2012 vs. 20112 ountPercentage 27,520 101.18% 2,462 2.5% 665 75.2% 29,399)-6.9% YTD Total 686,200 758,000 916,248 230,047 33.5%158,248 20.9% Annual Total1,651,371 1,835,100 012 vs. Budget 9 Monthly Financial Report May 2012 $0 $100 $200 $300 $400 $500 $600 $700 JanFebMarAprMayJunJulAugSepOctNovDec Th o u s a n d s Development Service Fees 2012 budget 2012 actual to date 2011 actual $0 $100 $200 $300 $400 $500 $600 $700 $800 $900 $1,000 rJanFebMa AprMayJunJulAugSepOctNovDec Th o u s a n d s Culture & Recreation 2012 budget 2012 actual to date 2011 actual Fines & Penalties totaled $700,000 and is slightly below of $712,000. The table below reflects the revised budget for the red light photo enforcement program, reflecting actual and forecasted financial performance. 10 Monthly Financial Report May 2012 201120122012 Month ActualBudgetActualAmountPercentageAmountPercentage Civil Penalties 8,566 6,400 6,924 (1,642) -19.2%524 8.2% Civil Infraction Penalties 298,711 261,700 282,581 (16,130) -5.4%20,881 8.0% Red Light Photo Enforcement429,454 248,800 248,716 (180,738) -42.1%(84) 0.0% Parking Infractions 76,177 75,000 50,689 (25,487) -33.5%(24,311) -32.4% Criminal Traffic Misdemeanor35,763 50,200 46,661 10,897 30.5%(3,539) -7.1% Criminal Non-Traffic Fines38,490 41,600 42,189 3,698 9.6%589 1.4% Criminal Costs 5,901 4,300 7,089 1,188 20.1%2,789 64.9% Non-Court Fines & Penalties43,753 23,800 14,666 (29,086) -66.5%(9,134) -38.4% YTD Total 936,814 711,800 699,513 (237,301) -25.3%(12,287) -1.7% Year to Date through May Fines & Forfeits by Type 2012 vs. 20112012 vs. Bud Annual Total 1,940,326 1,499,900 get $0.0 OctNovDec Mi l l i o n s Fines & Penalties $0.5 $1.0 $1.5 $2.0 $2.5 2012 budget 2012 actual to date 2011 actual JanFebMarAprMayJunJulAugSep $0.0 $0.1 $0.2 $0.3 $0.4 $0.5 $0.6 $0.7 $0.8 $0.9 Mi l l i o n s Photo Enforcement JanFebMarAprMayJunJulAugSepOctNovDec 2012 budget 2012 actual to date 2011 actual 11 Monthly Financial Report May 2012 Miscellaneous revenues include interest and other investment earnings, rents, leases & concessions, contributions & donations and other miscellaneous income. Revenues in this category totaled $200,000 and are below budget by $17,000 due primarily to lowered revenue from facility rentals and lowered interest earnings. 201120122012 Month ActualBudgetActualAmountPercentageA Interest & Investments 28,537 46,700 28,334 (204) -0.7% Rents & Leases 168,235 138,600 118,376 (49,859) -29.6%( Contributions & Donations16,128 6,600 22,089 5,961 37.0% Other Miscellaneous Revenue26,967 25,000 30,819 3,852 14.3% Miscellaneous Revenues by Type Year to Date through May 2012 vs. 2011 mountPercentage (18,366)-39.3% 20,224)-14.6% 15,489 234.7% 5,819 23.3% YTD Total 239,868 216,900 199,619 (40,249) -16.8%(17,281) -8.0% Annual Total 649,927 492,700 2012 vs. Budg et Real Estate Excise Tax (REET) revenue is receipted into the Capital Improvement Projects Fund and is used for governmental capital projects. REET revenue totaled $520,000 and is slightly below budget. $0.0 $0.2 $0.4 $0.6 $0.8 $1.0 $1.2 $1.4 $1.6 JanFebMarAprMayJunJulAugSepOctNovDe c Mi l l i o n s Real Estate Excise Tax 2012 budget 2012 actual to date 2011 actual 12 Monthly Financial Report May 2012 eteryGolf 06,637 334,639 - - - 69,252 6,637403,891 119,789108,388 50,080 485,040 - - - - 24,503131,472 394,372 724,900 87,735)(321,009) 89 179 1,431 - (11,134) - (9,614) 179 97,349)(320,830) - - 0,00014,608 - - 0,00014,608 02,651 (306,222) 814,709 5,144,962 ENDING FUND BALANCE May 31, 2012 63,203,713 72,756,384 48,320,735 1,695,536 9,564,172 917,360 4,838,740 Enterprise Funds The following table provides an analysis of the City’s Enterprise funds – showing 2012 revenues and expenditures by fund. WaterSewerStormSolid WasteAirportCem OPERATING REVENUES Charges for Services 3,511,617 1,898,876 3,044,704 4,757,347 6,601 3 Sewer Metro Service Revenue - 5,259,820 - - - Rents, Leases, Concessions & Other - - - - 249,338 TOTAL OPERATING REVENUES 3,511,617 7,158,696 3,044,704 4,757,347 255,939 30 OPERATING EXPENSES: Administration 992,166 795,304 831,971 333,632 234,983 Operations & Maintenance 1,703,952 1,038,680 1,286,867 488,012 - 2 Waste Management Payments - - - 3,065,355 - Sewer Metro Services - 5,211,643 - - - Depreciation & Amortization 906,670 735,485 530,605 7,841 163,732 TOTAL OPERATING EXPENSES 3,602,788 7,781,112 2,649,443 3,894,840 398,715 OPERATING INCOME (LOSS)(91,171) (622,416) 395,261 862,507 (142,776) ( NON-OPERATING REVENUES & EXPENSES Interest Revenue 17,790 5,669 5,502 216 658 Other Non Operating Revenue 108,479 39,693 34,470 72,132 370 Other Non Operating Expense - - - - (25,238) TOTAL NON-OPERATING REVENUES (EXPENSES)126,269 45,362 39,972 72,348 (24,210) 35,098 (577,054) 435,233 934,855 (166,986) ( Contributions 189,920 109,432 163,298 - - Transfers In - - - - - 20 Transfers Out (50,000) (50,000) (50,000) - - TOTAL CONTRIBUTIONS & TRANSFERS 139,920 59,432 113,298 - - 20 CHANGE IN FUND BALANCE 175,018 (517,622) 548,531 934,855 (166,986) 1 BEGINNING FUND BALANCE January 1, 2012 63,028,695 73,274,006 47,772,204 760,681 9,731,158 INCOME (LOSS) BEFORE CONTRIBUTIONS & TRANSFERS 13 Monthly Financial Report May 2012 The following table presents the Working Capital Statements for the City’s Enterprise funds. Working capital is generally defined as the difference between current assets and current liabilities. WaterSewerStormSolid WasteAirportCem OPERATING REVENUES Charges for Services 3,511,617 1,898,876 3,044,704 4,757,347 6,601 3 Sewer Metro Service Revenue - 5,259,820 - - - Rents, Leases, Concessions & Other - - - - 249,338 TOTAL OPERATING REVENUES 3,511,617 7,158,696 3,044,704 4,757,347 255,939 3 OPERATING EXPENSES: Salaries & Wages 850,877 561,574 755,304 175,425 7,947 1 Benefits 378,570 243,212 332,205 76,400 2,675 Supplies 61,683 13,436 16,516 7,827 - Other Service Charges 902,122 695,128 447,243 390,084 224,361 Intergovernmental Services - - 9,098 95,033 - Waste Management Payments - - - 3,065,355 - Sewer Metro Services - 5,211,643 - - - Interfund Operating Rentals/Supplies 502,866 320,634 554,763 76,875 - Other Expenses - - 3,710 - - Depreciation & Amortization 906,670 735,485 530,605 7,841 163,732 TOTAL OPERATING EXPENSES 3,602,788 7,781,112 2,649,444 3,894,840 398,715 3 OPERATING INCOME (LOSS)(91,171) (622,416) 395,260 862,507 (142,776) ( NON-OPERATING REVENUES & EXPENSES Interest Revenue 17,790 5,669 5,502 216 658 Other Non Operating Revenue 108,479 39,693 34,470 72,132 370 Other Non Operating Expense - - - - (25,238) TOTAL NON-OPERATING REVENUES (EXPENSES)126,269 45,362 39,972 72,348 (24,210) Plus Items Not Effecting Working Capital Depreciation 906,670 735,485 530,605 7,841 163,732 941,768 158,431 965,837 942,696 (3,254) ( Increase in Contributions -System Development 189,920 109,432 160,092 - - Increase in Contributions -Area Assessments - - 3,206 - - Operating Transfers In - - - - - 2 Increase in Restricted Net Assets 5,024 29,823 - - (5,472) Decrease in Long term Receivables - 45,000 - - - Increase in Deferred Credits - - - - (2,427) TOTAL RESOURCES OTHER THAN OPERATIONS 194,944 184,255 163,298 - (7,899) 2 Net Change in Restricted Net Assets 272,127 142,073 128,582 - (6,053) Increase in Fixed Assets - Salaries 52,732 46,034 18,414 - 14,465 Increase in Fixed Assets - Benefits 21,056 17,403 7,939 - - Increase in Fixed Assets - Site Improvements 33,262 - - - - Increase in Fixed Assets - Equipment 72,714 - - - - Increase in Fixed Assets - Construction 1,822,930 684,791 410,920 - - Operating Transfers Out 50,000 50,000 50,000 - - Debt Service Principal - - - - - TOTAL USES OTHER THAN OPERATIONS 2,324,821 940,301 615,855 - 8,412 NET CHANGE IN WORKING CAPITAL (1,188,109) (597,615) 513,281 942,696 (19,565) NET WORKING CAPITAL FROM OPERATIONS eteryGolf 06,637 334,639 - - - 69,252 06,637 403,891 87,445 226,584 91,411 111,108 40,159 127,597 23,309 60,634 - - - - - - 27,545 67,505 - - 24,503 131,472 94,372 724,900 87,735)(321,009) 89 179 1,431 - (11,134) - (9,614) 179 24,503 131,472 72,846)(189,358) - - - - 00,00014,608 - - - - - 00,00014,608 - (19,365) - - - - - - - - - - - - - - - (19,365) 127,154 (155,385) 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 May 31, 2012 15,757,702 12,208,912 9,615,280 1,574,959 942,068 198,974 (87,065) NET CHANGE IN WORKING CAPITAL (1,188,109) (597,615) 513,281 942,696 (19,565) 127,154 (155,385) 14 Monthly Financial Report May 2012 The Water Utility ended with a $91,000 net loss. - 200,000 400,000 600,000 800,000 1,000,000 1,200,000 Water Revenues ($) vs Water Sold (ccf) 2011 -Present JanFebMarAprMayJunJulAugSepOctNovDec 2011 Water Sales ($) 2012 Water Sales ($) 2011 Water Sold (ccf) 2012 Water Sold (ccf) The Sewer Utility ended the period with a $622,000 net operating loss while the Stormwater Utility ended with $395,000 in net income. Auburn Golf Course (AGC) revenues from green fees increased to $133,000 as compared to $125,000 the previous month, reflecting an improvement the number of rounds played. The number of rounds played year-to-date totals 14,216 in 2012 compared to 12,531 in 2011. While the AGC ended with a net operating loss of $321,000, its financial performance is expected to continue improving as play increases during the spring/summer season. $0 JanFebMarAprMayJunJulAugSepOctNovDec $50 $100 $150 $200 $250 $300 $350 Th o u s a n d s Golf Course Operating Revenues by Month (2012 vs 2011) 2012 Monthly Budget 2012 Actual 20 11 Actual 15 Monthly Financial Report May 2012 The Cemetery Fund ended with a $88,000 net operating loss as compared to $50,000 the previous month. The decline is a result of reduced revenue from marker sales and openings/closings. $0 JanFebMarAprMayJunJulAugSepOctNovDec $20 $40 $60 $80 $100 $120 $140 Th o u s a n d s Cemetery Operating Revenues by Month (2012 vs 2011) 2012 Monthly Budget 2012 Actual 2011 Actual 16 Monthly Financial Report May 2012 Equipment Rental 01,250,280 6 - 61,250,280 -291,150 7627,734 3295,564 01,214,448 4)35,832 6 2,128 -8,837 -- 6 10,965 8)46,797 0 72,714 -- -(7,000) 0 65,714 8)112,511 310,135,919 ENDING FUND BALANCE May 31, 2012 1,495,251 2,008,583 4,164,645 10,248,430 Internal Service Funds The following table provides an analysis of the City’s Internal Service funds – showing 2012 revenues and expenditures by fund. Information InsuranceFacilities Services OPERATING REVENUES: Interfund Charges for Services - 1,464,282 1,722,96 Rents, Leases, Concessions & Other - 43,760 38,90 TOTAL OPERATING REVENUES - 1,508,042 1,761,86 OPERATING EXPENSES: Administration 690,217 - Operations & Maintenance - 899,628 1,730,26 Depreciation & Amortization - - 222,17 TOTAL OPERATING EXPENSES 690,217 899,628 1,952,44 OPERATING INCOME (LOSS)(690,217) 608,414 (190,57 NON-OPERATING REVENUES & EXPENSES Interest Revenue 788 1,120 1,80 Other Non Operating Revenue (sale of fixed asset)- - Other Non Operating Expense - - TOTAL NON-OPERATING REVENUES (EXPENSES)788 1,120 1,80 INCOME (LOSS) BEFORE CONTRIBUTIONS & TRANSFERS (689,429) 609,534 (188,76 Contributions - - 3,23 Transfers In - 97,380 Transfers Out - (268,750) TOTAL CONTRIBUTIONS & TRANSFERS - (171,370) 3,23 CHANGE IN FUND BALANCE (689,429) 438,164 (185,53 BEGINNING FUND BALANCE January 1, 2012 2,184,680 1,570,419 4,350,18 17 Monthly Financial Report May 2012 Equipment Rental 01,250,280 6 61,250,280 2177,258 8 69,987 8400,089 9182,425 0 89,125 3295,564 01,214,448 4)35,832 6 2,128 -8,837 -- 6 10,965 3295,564 5342,361 -- 0 72,714 -- 0 72,714 0 33,823 -18,493 8916,287 -- -7,000 8975,603 3)(560,528) 65,793,165 35,232,637 NET CHANGE IN WORKING CAPITAL (689,429) 339,463 (234,423) (560,528) The following table presents the Working Capital Statements for the City’s Internal Service funds. Working capital is generally defined as the difference between current assets and current liabilities. Information InsuranceFacilities Services OPERATING REVENUES: Interfund Charges for Services - 1,464,282 1,722,96 Rents, Leases, Concessions & Other - 43,760 38,90 TOTAL OPERATING REVENUES - 1,508,042 1,761,86 OPERATING EXPENSES: Salaries & Wages - 273,636 546,46 Benefits - 118,845 223,81 Supplies - 41,374 88,41 Other Service Charges 690,217 424,983 751,11 Interfund Operating Rentals/Supplies - 40,790 120,45 Depreciation & Amortization - - 222,17 TOTAL OPERATING EXPENSES 690,217 899,628 1,952,44 OPERATING INCOME (LOSS)(690,217) 608,414 (190,57 NON-OPERATING REVENUES & EXPENSES Interest Revenue 788 1,120 1,80 Other Non Operating Revenue (sale of fixed asset)- - Other Non Operating Expense - - TOTAL NON-OPERATING REVENUES (EXPENSES)788 1,120 1,80 Plus Items Not Effecting Working Capital Depreciation - - 222,17 (689,429) 609,534 33,40 Increase in Contributions -Other Government - - Increase in Contributions -Other Funds - - 3,23 Operating Transfers In - 97,380 TOTAL RESOURCES OTHER THAN OPERATIONS - 97,380 3,23 Net Change in Restricted Net Assets - - 3,23 Increase in Fixed Assets - Site Improvements - - Increase in Fixed Assets - Equipment - - 267,82 Increase in Fixed Assets - Construction - 98,701 Operating Transfers Out - 268,750 TOTAL USES OTHER THAN OPERATIONS - 367,451 271,05 NET CHANGE IN WORKING CAPITAL (689,429) 339,463 (234,42 BEGINNING WORING CAPITAL January 1, 2012 2,184,680 1,622,449 3,118,68 ENDING WORKING CAPITAL May 31, 2012 1,495,251 1,961,912 2,884,26 NET WORKING CAPITAL FROM OPERATIONS 18 Monthly Financial Report May 2012 Operating expenses within the Insurance Fund represents 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 throughout the entire year. The Information Services Fund ended with a net operating loss – reflecting the timing of expenditures. No significant variances are reported in the Facilities Fund or Equipment Rental Fund. Both funds have had sufficient revenues to cover year-to-date expenses. 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. 19 SALES TAX SUMMARY MAY 2012 SALES TAX DISTRIBUTIONS (FOR NOVEMBER - MARCH 2012 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-Mar '11)(Nov '11-Mar '12)% Diff NAICS AUTOMOTIVE (Nov '10-Oct '11)(Nov '10-Mar '11)(Nov '11-Mar '12)% Diff 236 Construction of Buildings 582,840 205,548 167,616 -18.5%441 Motor Vehicle and Parts Dealer 2,560,962 1,010,133 1,090,111 7.9% 237 Heavy and Civil Construction 108,727 34,608 51,917 50.0%447 Gasoline Stations 224,459 89,342 91,492 2.4% 238 Specialty Trade Contractors 604,245 248,976 235,799 -5.3%TOTAL AUTOMOTIVE 2,785,421$ 1,099,474$ 1,181,603$ 7.5% TOTAL CONSTRUCTION 1,295,813$ 489,132$ 455,332$ -6.9%Overall Change from Previous Year 82,128$ Overall Change from Previous Year (33,800)$ 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-Mar '11)(Nov '11-Mar '12)% Diff NAICS MANUFACTURING (Nov '10-Oct '11)(Nov '10-Mar '11)(Nov '11-Mar '12)% Diff 442 Furniture and Home Furnishings 218,335 89,594 93,969 4.9% 311 Food Manufacturing 2,674 1,083 1,562 44.2%443 Electronics and Appliances 126,870 60,779 60,759 0.0% 312 Beverage and Tobacco Products 3,864 1,563 1,665 6.5%444 Building Material and Garden 382,504 134,543 145,810 8.4% 313 Textile Mills 959 74 56 -24.2%445 Food and Beverage Stores 330,776 136,325 134,695 -1.2% 314 Textile Product Mills 2,625 674 2,449 263.5%446 Health and Personal Care Store 148,387 64,924 66,763 2.8% 315 Apparel Manufacturing 2,519 2,380 176 -92.6%448 Clothing and Accessories 754,407 333,265 331,450 -0.5% 316 Leather and Allied Products 175 14 55 306.3%451 Sporting Goods, Hobby, Books 126,042 60,402 57,494 -4.8% 321 Wood Product Manufacturing 24,075 9,735 7,816 -19.7%452 General Merchandise Stores 967,627 464,510 426,125 -8.3% 322 Paper Manufacturing 11,026 6,617 1,780 -73.1%453 Miscellaneous Store Retailers 489,259 207,978 191,455 -7.9% 323 Printing and Related Support 38,511 18,715 13,988 -25.3%454 Nonstore Retailers 235,923 106,493 112,405 5.6% 324 Petroleum and Coal Products 9,771 2,863 2,926 2.2%TOTAL RETAIL TRADE 3,780,129$ 1,658,812$ 1,620,924$ -2.3% 325 Chemical Manufacturing 7,937 2,843 2,409 -15.3%Overall Change from Previous Year (37,888)$ 326 Plastics and Rubber Products 9,777 4,529 3,950 -12.8% 327 Nonmetallic Mineral Products 16,218 4,319 5,611 29.9% 331 Primary Metal Manufacturing 452 59 1,111 1787.2%2011 Annual Total 2011 YTD 2012 YTD YTD332Fabricated Metal Product Manuf 19,661 9,002 5,503 -38.9%NAICS SERVICES (Nov '10-Oct '11)(Nov '10-Mar '11)(Nov '11-Mar '12)% Diff 333 Machinery Manufacturing 14,242 5,401 5,905 9.3%51*Information 481,043 170,770 163,185 -4.4% 334 Computer and Electronic Produc 16,776 6,351 3,348 -47.3%52*Finance and Insurance 65,518 27,058 11,086 b -59.0% 335 Electric Equipment, Appliances 780 115 243 110.3%53*Real Estate, Rental, Leasing 303,750 118,835 129,686 9.1% 336 Transportation Equipment Man 362,149 173,080 49,513 a -71.4%541 Professional, Scientific, Tech 174,718 79,575 71,499 -10.1% 337 Furniture and Related Products 13,135 4,033 6,718 66.6%551 Company Management 351 52 4 -91.3% 339 Miscellaneous Manufacturing 25,531 11,773 9,932 -15.6%56*Admin. Supp., Remed Svcs 294,603 101,877 111,934 9.9% TOTAL MANUFACTURING 582,858$ 265,221$ 126,714$ -52.2%611 Educational Services 52,563 24,010 19,105 -20.4% Overall Change from Previous Year (138,507)$ 62*Health Care Social Assistance 40,737 8,770 14,946 70.4% 71*Arts and Entertainment 148,629 81,889 85,241 4.1% 72*Accomodation and Food Svcs 838,924 326,852 368,016 12.6% 2011 Annual Total 2011 YTD 2012 YTD YTD 81*Other Services 389,241 167,065 164,436 -1.6% NAICS TRANSPORTATION AND WAREHOUSING (Nov '10-Oct '11)(Nov '10-Mar '11)(Nov '11-Mar '12)% Diff 92*Public Administration 92,163 35,207 57,588 63.6% 481 Air Transportation 24 24 - -100.0%TOTAL SERVICES 2,882,241$ 1,141,959$ 1,196,727$ 4.8% 482 Rail Transportation 17,831 6,589 3,308 -49.8%Overall Change from Previous Year 54,768$ 484 Truck Transportation 36,261 6,208 5,989 -3.5% 485 Transit and Ground Passengers 68 39 218 462.6% 488 Transportation Support 18,083 7,154 7,001 -2.1%2011 Annual Total 2011 YTD 2012 YTD YTD 491 Postal Service 202 89 93 4.7%NAICS MISCELLANEOUS (Nov '10-Oct '11)(Nov '10-Mar '11)(Nov '11-Mar '12)% Diff 492 Couriers and Messengers 1,492 682 306 -55.0%000 Unknown 1,958 383 1 -99.7% 493 Warehousing and Storage 3,121 1,281 2,341 82.8%111-115 Agriculture, Forestry, Fishing 7,355 2,163 1,177 -45.6% TOTAL TRANSPORTATION 77,083$ 22,065$ 19,257$ -12.7%211-221 Mining & Utilities 21,830 5,557 9,708 74.7% Overall Change from Previous Year (2,808)$ 999 Unclassifiable Establishments 192,496 87,302 7,260 -91.7% TOTAL SERVICES 223,639$ 95,405$ 18,146$ -81.0% Overall Change from Previous Year (77,259)$ 2011 Annual Total 2011 YTD 2012 YTD YTD NAICS WHOLESALE TRADE (Nov '10-Oct '11)(Nov '10-Mar '11)(Nov '11-Mar '12)% Diff 423 Wholesale Trade, Durable Goods 1,095,905 447,179 460,463 3.0%GRAND TOTAL 12,887,267$ 5,286,772$ 5,141,547$ 424 Wholesale Trade, Nondurable 150,480 65,226 60,373 -7.4%Overall Change from Previous Year (145,224)$ -2.7% 425 Wholesale Electronic Markets 13,698 2,298 2,008 -12.6% TOTAL WHOLESALE 1,260,083$ 514,703$ 522,843$ 1.6% Overall Change from Previous Year 8,141$ a. Wa. State Dept of Revenue audit adjustment to sales tax returns for period Nov 2011 (adjustment: -$73,971).b. Wa. State Dept of Revenue audit adjustment to sales tax returns for period Dec 2011 (adjustment: -$20,014). 05/29/12 file:Monthly Sales Tax Report.xls Prepared by Auburn Financial Planning 20 Investment PurchasePurchaseMaturityYield to Type Date Price DateMaturity State Investment PoolVarious 79,135,766$ Various 0.14% KeyBank Money MarketVarious 14,473,014Various 0.15% US Treasury 05/04/1990 57,75005/15/20165.72% FFCB 6/6/20112,000,0006/6/20141.180% FHLB 6/13/20112,000,0006/13/20141.150% FHLMC 12/19/20112,000,00012/19/20141.000% FNMA 12/29/20112,000,00012/29/20140.900% Total Cash & Investments 101,666,530$ 0.220% Investment Mix% of Total State Investment Pool 77.8%Current 6-month treasury rate0.15% KeyBank Money Market 14.2%Current State Pool rate0.14% US Treasury 0.1%KeyBank Money Market0.15% FHLB 2.0%Blended Auburn rate0.22% FFCB 2.0% FHLMC 2.0% FNMA 2.0% 100.0% City of Auburn Investment Portfolio Summary May 31, 2012 Summary 21