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Home My WebLink AboutJune 2012 AGENDA BILL APPROVAL FORM Agenda Subject: June 2012 Financial Report Date: 08/07/2012 Department: Finance Attachments: Monthly Financial Report Budget Impact: $0 Administrative Recommendation: For discussion only. 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 June status report is based on financial data available as of July 24, 2012. Sales tax information represents business activity that occurred in April 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. General fund revenue collections totaled $25.9 million and compare to budget-to-date of $25.1 million and collections of $26.0 million for the same period previous year. General Fund revenues were sufficient to support expenses which totaled $24.9 million and compare to budget of $27.8 million and expenditures of $23.9 million for the same period last year. The increase in expenditures-to-date is due primarily to the scheduled payment of Golf Course debt service for construction and improvements related to the clubhouse. General Fund funding for Golf Course debt service was authorized by Council under Budget Amendment #7. 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 June, the Water fund ended with a slight operating loss of $28,000; the Sewer fund ended this period with a $630,000 operating loss; and the Stormwater fund ended with an operating income of $336,000. The Golf Course ended the period with an operating loss of $296,000. Activity at the Golf Course declined with unfavorable weather conditions in June. Financial activity is expected to improve with the recent warm and dry weather conditions in July. Cemetery revenues at the end of June totaled $351,000 and were below expenses of $500,000. 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. 1 Agenda Subject: June 2012 Financial Report Date: 08/13/2012 Investment Portfolio: The City’s total cash and investments at the end of June were $96.9 million and compare to $101.7 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: Staff: Coleman Meeting Date: August 20, 2012 Item Number: 2 Monthly Financial Report June 2012 General Fund 2011 Summary of Sources and Uses Annual BudgetYTD BudgetYTD ActualYTD ActualAmountPercentage OPERATING REVENUES Property Tax 12,562,565 6,557,000 6,716,277 6,564,742 159,277 2.4% Sales Tax (1)14,227,000 7,046,300 7,055,825 7,348,935 9,525 0.1% Sales Tax - Annexation Credit 1,383,730 665,630 724,048 717,024 58,418 8.8% Criminal Justice Sales Tax 1,212,900 599,200 665,828 665,164 66,628 11.1% Brokered Natural Gas Tax 260,000 160,900 202,087 190,558 41,187 25.6% City Utilities Tax 2,620,200 1,255,100 1,304,579 1,175,132 49,479 3.9% Admissions Tax 360,000 140,600 136,667 129,756 (3,933) -2.8% 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 1,022,000 957,909 1,020,467 (64,091) -6.3% Garbage Tax (external)150,000 75,000 62,243 73,328 (12,757) -17.0% Leasehold Excise Tax 50,000 22,900 19,706 20,254 (3,194) N/A Gambling Excise Tax 331,500 192,500 130,595 119,339 (61,905) -32.2% Taxes sub-total 40,519,715 20,718,330 20,885,322 20,867,159 166,992 0.8% Business License Fees 200,000 68,800 121,356 107,957 52,556 76.4% Building Permits 700,000 340,200 638,702 513,599 298,502 87.7% Other Licenses & Permits 229,000 100,100 163,473 163,709 63,373 63.3% Intergovernmental (Grants, etc)3,537,433 1,765,352 1,766,541 1,862,441 1,189 0.1% Charges for Services: General Government Services 64,600 32,300 61,158 42,166 28,858 89.3% Public Safety 223,500 119,900 123,615 128,697 3,715 3.1% Development Services Fees 627,000 265,500 449,759 248,381 184,259 69.4% Culture and Recreation 920,000 541,100 508,196 471,339 (32,904) -6.1% Fines and Forfeits 1,499,800 845,500 827,347 1,122,959 (18,153) -2.1% Fees/Charges/Fines sub-total 8,001,333 4,078,752 4,660,146 4,661,249 581,394 14.3% Interests and Other Earnings 115,000 56,200 45,499 39,829 (10,701) -19.0% Rents, Leases and Concessions 311,000 176,300 190,962 220,997 14,662 8.3% Contributions and Donations 20,500 9,600 26,053 25,163 16,453 171.4% Other Miscellaneous 46,200 27,700 38,214 39,064 10,514 38.0% Transfers In 17,000 17,000 17,000 78,439 - 0.0% Insurance Recoveries- Capital & Operating 50,000 19,497 50,612 84,855 31,116 159.6% Other Revenues sub-total 559,700 306,297 368,340 488,347 62,043 20.3% Total Operating Revenues 49,080,748 25,103,379 25,913,809 26,016,755 810,430 3.2% Operating Expenditures Council & Mayor 869,890 431,790 435,685 380,126 (3,895) -0.9% Municipal Court & Probation 3,399,260 1,602,460 1,456,652 1,466,655 145,808 9.1% Human Resources 942,164 455,400 397,222 390,451 58,178 12.8% Finance 1,235,590 645,800 558,337 609,971 87,463 13.5% City Attorney 1,699,500 896,800 810,780 805,666 86,020 9.6% Planning 3,883,620 1,886,500 1,978,767 1,796,946 (92,267) -4.9% Community & Human Services 1,160,360 575,460 492,134 469,469 83,326 14.5% Jail - SCORE 4,764,750 2,275,050 2,028,020 2,463,790 247,030 10.9% Police 20,682,698 9,951,500 8,957,134 8,747,972 994,366 10.0% Engineering 2,718,870 1,320,270 1,247,498 1,091,559 72,772 5.5% Parks and Recreation 7,598,230 3,701,930 3,590,713 3,409,744 111,217 3.0% Streets 3,415,280 1,592,580 1,310,275 1,246,520 282,305 17.7% Non-Departmental 7,130,550 2,471,300 1,656,254 1,040,704 815,046 33.0% Total Operating Expenditures 59,500,762 27,806,840 24,919,471 23,919,574 2,887,369 10.4% 2012 2012 YTD Budget vs. Actual Favorable (Unfavorable) (1) The anticipated Streamlined Sales Tax for 2012 is $1.96 million. The year to date actual Sales Tax amount includes $930,770 Streamlined Sales Tax Mitigation received from the State through June. 3 Monthly Financial Report June 2012 Overview This financial overview reflects the City’s overall financial position for the fiscal period ending June 30, 2012 and represents financial data available as of July 24, 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 $25.9 million and were above budget by 3.2%, or $810,000. This period’s highlights include: - Tax revenues totaled $20.9 million and were $167,000 above budget. - Sales taxes totaled $7.1 million and were on target with budget. - Revenue from Fees/Charges/Fines totaled $4.7 million and were $581,000 above budget due to stronger than budgeted revenue from development activity. - Other revenues totaled $368,000 and were 20% or $62,000 above budget. General Fund expenses totaled $24.9 million and were $2.9 million below budget and compared to expenses of $23.9 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 $6.7 million and exceeds budget by 2.4% or $160,000. 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. $0.0 $2.0 $4.0 $6.0 $8.0 $10.0 $12.0 $14.0 JanFebMarAprMayJunJulAugSepOctNovDec Mi l l i o n s Property Taxes 2012 budget 2012 actual to date 2011 actual 4 Monthly Financial Report June 2012 Sales taxes totaled $7.1 million and is on target with budget and include $931,000 in Streamlined Sales Tax Mitigation. $0.0 $2.0 $4.0 $6.0 $8.0 $10.0 $12.0 $14.0 $16.0 JanFebMarAprMayJunJulAugSepOctNovDec 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 GroupActualActualAmountPercentage New Construction 570,698 540,849 (29,849) -5.2% Manufacturing 300,881 133,123 (167,758) -55.8% Transportation & Warehousing50,451 23,747 (26,704) -52.9% Wholesale Trade 648,159 627,254 (20,905) -3.2% Automotive 1,343,523 1,443,831 100,308 7.5% Retail Trade 1,940,266 1,926,266 (14,000) -0.7% Services 1,392,963 1,432,134 39,171 2.8% Miscellaneous 134,788 24,821 (109,967) -81.6% YTD Total 6,381,729 6,152,025 (229,704) -3.6% Change from 2011 Year to Date through June Comparison of Sales Tax Collections by SIC Group As shown above, sales taxes by business sector totaled $6.1 million and are 3.6% 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 June 2012 $0.0 $1.0 $2.0 $3.0 $4.0 $5.0 $6.0 $7.0 $8.0 $9.0 $10.0 JanFebMarAprMayJunJulAugSepOctNovDec Mi l l i o n s Utility Tax 2012 budget 2012 actual to date 2011 actual 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 $4.8 million and are running 2.9% below budget. The following table presents utility tax collections by source: 201120122012 Month ActualBudgetActualAmountPercentageAmountPercentage City Interfund Utility Taxes1,175,132 1,255,100 1,304,579 129,447 11.0%49,479 3.9% Electric 1,678,394 1,756,300 1,729,940 51,546 3.1%(26,360) -1.5% Natural Gas 728,141 836,100 747,170 19,029 2.6%(88,930) -10.6% Telephone 1,020,467 1,022,000 957,909 (62,558) -6.1%(64,091) -6.3% Solid Waste 73,328 75,000 62,243 (11,085) -15.1%(12,757) -17.0% YTD Total 4,675,462 4,944,500 4,801,840 126,379 2.7%(142,660) -2.9% Year to Date through June Utility Tax by Type 2012 vs. 20112012 vs. Budget 6 Monthly Financial Report June 2012 Cable TV Franchise Fees exceed budget by $49,000 and are comparable to 2011 levels. This revenue source is likely to outperform budget by the end of 2012 and end at levels similar to the previous year. $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 $639,000 and exceeded both budget and prior year levels of $340,000 and $514,000, respectively. Building permit activity has increased, reflecting the broader trend of increased construction activity in the region. 7 Monthly Financial Report June 2012 $0 $200 $400 $600 $800 $1,000 $1,200 JanFebMarAprMayJunJulAugSepOctNovDec Th o u s a n d s Building Permits 2012 budget 2012 actual to date 2011 actual Business License revenues totaled $121,000 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. $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 8 Monthly Financial Report June 2012 Intergovernmental includes Grants (Direct & Indirect Federal, State and Local); State shared revenues and compact revenue from the Muckleshoot Indian Tribe. Collections totaled $1.8 million and is on-target with budget. State shared revenue includes June 2012 disbursement of $188,000 by the State of Washington from the sale of state owned liquor stores2. 20112012 2012 Revenue ActualBudgetActual% Change% Change Federal Grants 125,491 194,392 145,611 16.0%-25.1% State Grants 52,824 24,400 40,141 -24.0%64.5% Interlocal Grants 3,151 62,100 2,500 -20.7%-96.0% State Shared Revenue 1,283,365 1,097,760 1,226,144 -4.5%11.7% Muckleshoot Casino Emerg.385,731 386,700 345,875 -10.3%-10.6% Intergovernmental Service11,880 - 6,271 -47.2%N/A YTD Total 1,862,441 1,765,352 1,766,541 -5.1%0.1% Year to Date through June Intergovernmental 2012 vs. 20112012 vs. Budget Note: 2012 liquor excise tax and liquor profit budget revised to reflect changes in State distributions as noted in footnote above. 201120122012 Revenue ActualBudgetActualAmountPercentageAmountPercentage Trial Court Improvements11,234 12,300 11,316 82 N/A(984) -8.00% Court Interpreter Program6,643 6,960 10,872 4,229 N/A3,912 56.21% Motor Vehicle Fuel Tax 707,052 459,500 465,678 (241,374) -34.1%6,178 1.3% Criminal Justice -High Crime75,325 - 71,399 (3,926) -5.2%71,399 N/A Criminal Justice -Population7,690 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 7,931 3,600 6,777 (1,154) -14.6%3,177 88.2% Fire Insurance Premium Tax 258 65,000 63,205 62,946 N/A(1,795) -2.76% Liquor Excise Tax 169,003 81,000 174,785 5,782 3.4%93,785 115.8% Liquor Profits 269,184 394,500 385,039 115,855 43.0%(9,461) -2.40% YTD Total 1,283,365 1,097,760 1,226,144 (57,221) -4.5%128,384 11.7% Year to Date through June State Shared Revenues 2012 vs. 20112012 vs. Budget 2 The City of Auburn received $188,230 from the sale of State owned liquor stores in the month of June 2012 and is reflected in this 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. 9 Monthly Financial Report June 2012 Charges for Services consists of general governmental services, public safety, development service fees and cultural & recreation fees and totaled $1.1 million. Development service fees and culture and recreation fees make up 84% of the revenue within this category. Development services revenues totaled $450,000 compared to budget of $266,000 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 and camps. 201120122012 Revenue ActualBudgetActualAmountPercentageAmountPercentage General Government 42,166 32,300 61,158 18,992 45.04%28,858 89.34% Public Safety 128,697 119,900 123,615 (5,083) -3.9%3,715 3.1% Development Services 248,381 265,500 449,759 201,378 81.1%184,259 69.4% Culture & Recreation 471,339 541,100 508,196 36,857 7.8%(32,904) -6.1% YTD Total 890,584 958,800 1,142,727 252,144 28.3%183,927 19.2% Year to Date through June Charges for Services by Type 2012 vs. 20112012 vs. Budget $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 10 Monthly Financial Report June 2012 $0 $100 $200 $300 $400 $500 $600 $700 $800 $900 $1,000 JanFebMarAprMayJunJulAugSepOctNovDec Th o u s a n d s Culture & Recreation 2012 budget 2012 actual to date 2011 actual Fines & Penalties totaled $827,000 and is running 2.1% below budget of $846,000 due primarily to a decline in revenue from parking infractions. 201120122012 Month ActualBudgetActualAmountPercentageAmountPercentage Civil Penalties 10,197 7,700 8,318 (1,879) -18.4%618 8.0% Civil Infraction Penalties 360,765 311,900 329,677 (31,088) -8.6%17,777 5.7% Red Light Photo Enforcement508,385 291,800 300,183 (208,202) -41.0%8,383 2.9% Parking Infractions 92,033 89,300 60,236 (31,797) -34.5%(29,064) -32.5% Criminal Traffic Misdemeanor42,877 60,100 52,581 9,704 22.6%(7,519) -12.5% Criminal Non-Traffic Fines48,305 50,400 48,647 342 0.7%(1,753) -3.5% Criminal Costs 7,982 5,700 8,298 316 4.0%2,598 45.6% Non-Court Fines & Penalties52,415 28,600 19,406 (33,009) -63.0%(9,194) -32.1% YTD Total 1,122,959 845,500 827,347 (295,612) -26.3%(18,153) -2.1% Year to Date through June Fines & Forfeits by Type 2012 vs. 20112012 vs. Budget 11 Monthly Financial Report June 2012 $0.0 $0.5 $1.0 $1.5 $2.0 $2.5 JanFebMarAprMayJunJulAugSepOctNovDec Mi l l i o n s Fines & Penalties 2012 budget 2012 actual to date 2011 actual $0.0 $0.1 $0.2 $0.3 $0.4 $0.5 $0.6 $0.7 $0.8 $0.9 JanFebMarAprMayJunJulAugSepOctNovDec Mi l l i o n s Photo Enforcement 2012 budget 2012 actual to date 2011 actual Miscellaneous revenues include interest and other investment earnings, rents, leases & concessions, contributions & donations and other miscellaneous income. Revenues in this category totaled $301,000 and exceed budget by $31,000. 201120122012 Month ActualBudgetActualAmountPercentageAmountPercentage Interest & Investments 39,829 56,200 45,499 5,669 14.2%(10,701) -19.0% Rents & Leases 220,997 176,300 190,962 (30,035) -13.6%14,662 8.3% Contributions & Donations25,163 9,600 26,053 890 3.5%16,453 171.4% Other Miscellaneous Revenue39,064 27,700 38,214 (850) -2.2%10,514 38.0% YTD Total 325,053 269,800 300,727 (24,326) -7.5%30,927 11.5% Miscellaneous Revenues by Type Year to Date through June 2012 vs. 20112012 vs. Budget 12 Monthly Financial Report June 2012 Real Estate Excise Tax (REET) revenue is receipted into the Capital Improvement Projects Fund and is used for governmental capital projects. REET revenue totaled $617,000 and is $80,000 below budget. $0.0 $0.2 $0.4 $0.6 $0.8 $1.0 $1.2 $1.4 $1.6 JanFebMarAprMayJunJulAugSepOctNovDec Mi l l i o n s Real Estate Excise Tax 2012 budget 2012 actual to date 2011 actual 13 Monthly Financial Report June 2012 Enterprise Funds The following table provides an analysis of the City’s Enterprise funds – showing 2012 revenues and expenditures by fund. WaterSewerStormSolid WasteAirportCemeteryGolf OPERATING REVENUES Charges for Services 4,285,279 2,283,978 3,646,902 5,746,970 7,838 351,033 425,391 Sewer Metro Service Revenue - 6,434,256 - - - - - Rents, Leases, Concessions & Other - - - - 296,681 - 154,648 TOTAL OPERATING REVENUES 4,285,279 8,718,234 3,646,902 5,746,970 304,519 351,033 580,039 OPERATING EXPENSES: Administration 1,197,795 953,860 1,217,302 374,094 278,907 143,661 111,160 Operations & Maintenance 2,027,627 1,262,516 1,344,761 600,571 78 317,362 607,475 Waste Management Payments - - - 3,870,308 - - - Sewer Metro Services - 6,251,464 - - - - - Depreciation & Amortization 1,087,477 879,918 748,974 9,410 197,250 38,806 157,479 TOTAL OPERATING EXPENSES 4,312,899 9,347,758 3,311,037 4,854,383 476,235 499,829 876,114 OPERATING INCOME (LOSS)(27,620) (629,524) 335,865 892,588 (171,716) (148,796) (296,076) NON-OPERATING REVENUES & EXPENSES Interest Revenue 20,057 19,640 6,892 275 819 116 230 Other Non Operating Revenue 109,222 39,895 35,062 72,132 495 13,995 8,497 Other Non Operating Expense (28,816) (20,541) - - (25,238) (11,134) - TOTAL NON-OPERATING REVENUES (EXPENSES)100,463 38,994 41,954 72,406 (23,923) 2,977 8,727 72,843 (590,531) 377,819 964,994 (195,639) (145,819) (287,349) Contributions 217,366 134,065 204,446 - - - - Transfers In - - - - - 200,000 21,272 Transfers Out (50,000) (50,000) (50,000) - - - - TOTAL CONTRIBUTIONS & TRANSFERS 167,366 84,065 154,446 - - 200,000 21,272 CHANGE IN FUND BALANCE 240,210 (506,466) 532,264 964,994 (195,639) 54,181 (266,077) 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 June 30, 2012 63,268,905 72,767,541 48,304,468 1,725,675 9,535,519 868,890 4,878,885 INCOME (LOSS) BEFORE CONTRIBUTIONS & TRANSFERS 14 Monthly Financial Report June 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 WasteAirportCemeteryGolf OPERATING REVENUES Charges for Services 4,285,279 2,283,978 3,646,902 5,746,970 7,838 351,033 425,391 Sewer Metro Service Revenue - 6,434,256 - - - - - Rents, Leases, Concessions & Other - - - - 296,681 - 154,648 TOTAL OPERATING REVENUES 4,285,279 8,718,234 3,646,902 5,746,970 304,519 351,033 580,039 OPERATING EXPENSES: Salaries & Wages 1,020,277 672,189 909,163 211,059 9,536 224,105 276,583 Benefits 453,030 290,670 399,968 91,679 3,208 108,806 133,651 Supplies 70,801 24,578 24,673 9,762 - 68,310 151,341 Other Service Charges 1,092,522 845,055 549,749 474,882 266,240 26,748 76,054 Intergovernmental Services - - 9,098 95,033 - - - Waste Management Payments - - - 3,870,308 - - - Sewer Metro Services - 6,251,464 - - - - - Interfund Operating Rentals/Supplies 588,791 383,884 665,702 92,250 - 33,054 81,006 Other Expenses - - 3,710 - - - - Depreciation & Amortization 1,087,477 879,918 748,974 9,410 197,250 38,806 157,479 TOTAL OPERATING EXPENSES 4,312,898 9,347,758 3,311,037 4,854,383 476,235 499,829 876,115 OPERATING INCOME (LOSS)(27,619) (629,524) 335,865 892,587 (171,716) (148,796) (296,076) NON-OPERATING REVENUES & EXPENSES Interest Revenue 20,057 19,640 6,892 275 819 116 230 Contributions - 1,310 - 71,692 - 12,606 8,497 Other Non Operating Revenue 109,222 38,585 35,062 440 495 1,388 - Debt Service Interest (28,816) (20,541) - - (25,238) (11,134) - TOTAL NON-OPERATING REVENUES (EXPENSES)100,463 38,994 41,954 72,406 (23,923) 2,977 8,727 Plus Items Not Effecting Working Capital Depreciation 1,087,477 879,918 748,974 9,410 197,250 38,806 157,479 1,160,320 289,388 1,126,793 974,403 1,612 (107,014) (129,869) Increase in Contributions -System Development 214,160 134,065 204,446 - - - - Increase in Contributions -Area Assessments 3,206 - - - - - - Increase in Contributions -Other Governments - - - - - - - Operating Transfers In - - - - - 200,000 21,272 Increase in Restricted Net Assets 8,177 40,649 - - (5,731) - Decrease in Long term Receivables - 45,000 - - - - - Increase in Deferred Credits - - - - (1,494) - - TOTAL RESOURCES OTHER THAN OPERATIONS 225,544 219,714 204,446 - (7,225) 200,000 21,272 Net Change in Restricted Net Assets 272,298 142,132 128,702 - (6,312) - (26,731) Increase in Fixed Assets - Salaries 61,355 50,092 27,987 - - - - Increase in Fixed Assets - Benefits 24,083 18,961 10,618 - - - - Increase in Fixed Assets - Site Improvements 37,408 - - - 14,466 - - Increase in Fixed Assets - Equipment 72,714 - - - - - - Increase in Fixed Assets - Construction 2,130,858 775,024 465,737 - - - - Operating Transfers Out 50,000 50,000 50,000 - - - - Debt Service Principal 435,568 288,262 - - - - - TOTAL USES OTHER THAN OPERATIONS 3,084,285 1,324,470 683,044 - 8,154 - (26,731) NET CHANGE IN WORKING CAPITAL (1,698,420) (815,369) 648,195 974,403 (13,767) 92,986 (81,866) 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 June 30, 2012 15,247,390 11,991,158 9,750,195 1,606,667 947,866 164,805 (13,546) NET CHANGE IN WORKING CAPITAL (1,698,420) (815,369) 648,195 974,403 (13,767) 92,986 (81,866) NET WORKING CAPITAL FROM OPERATIONS 15 Monthly Financial Report June 2012 The Water Utility ended with a $28,000 net loss. The Sewer Utility ended the period with a $630,000 net operating loss while the Stormwater Utility ended with $336,000 in net income. The number of rounds played at Auburn Golf Course (AGC) dropped sharply in June to 5,869 as compared to 6,956 rounds for the same month last year due to wet weather conditions. The AGC ended with a net operating loss of $296,100 as compared to $321,000 for the previous month. Financial performance for the AGC is expected to improve in July with the recent warm and dry weather conditions. $0 $50 $100 $150 $200 $250 $300 $350 JanFebMarAprMayJunJulAugSepOctNovDec Th o u s a n d s Golf Course Operating Revenues by Month (2012 vs 2011) 2012 Monthly Budget 2012 Actual 2011 Actual 16 Monthly Financial Report June 2012 The Cemetery Fund ended with a $145,000 net operating loss as compared to an $88,000 net operating loss the previous month as revenue declined in nearly all areas of cemetery activities. $0 $20 $40 $60 $80 $100 $120 $140 JanFebMarAprMayJunJulAugSepOctNovDec Th o u s a n d s Cemetery Operating Revenues by Month (2012 vs 2011) 2012 Monthly Budget 2012 Actual 2011 Actual 17 Monthly Financial Report June 2012 Internal Service Funds The following table provides an analysis of the City’s Internal Service funds – showing 2012 revenues and expenditures by fund. InformationEquipment InsuranceFacilities Services Rental OPERATING REVENUES: Interfund Charges for Services - 1,718,550 2,067,552 1,498,839 Rents, Leases, Concessions & Other - 48,601 45,630 - TOTAL OPERATING REVENUES - 1,767,151 2,113,182 1,498,839 OPERATING EXPENSES: Administration 605,750 - - 349,586 Operations & Maintenance - 1,046,859 2,034,651 713,019 Depreciation & Amortization - - 289,200 388,232 TOTAL OPERATING EXPENSES 605,750 1,046,859 2,323,851 1,450,837 OPERATING INCOME (LOSS)(605,750) 720,292 (210,669) 48,002 NON-OPERATING REVENUES & EXPENSES Interest Revenue 1,008 1,410 2,238 8,545 Other Non Operating Revenue - 7,292 - 531 Gain/Loss on Sale of Fixed Assets - - - 19,449 Other Non Operating Expense - - - - TOTAL NON-OPERATING REVENUES (EXPENSES)1,008 8,702 2,238 28,525 INCOME (LOSS) BEFORE CONTRIBUTIONS & TRANSFERS (604,741) 728,994 (208,431) 76,527 Contributions - - 3,230 72,714 Transfers In - 97,380 - - Transfers Out - (322,500) - (7,000) TOTAL CONTRIBUTIONS & TRANSFERS - (225,120) 3,230 65,714 CHANGE IN FUND BALANCE (604,741) 503,874 (205,201) 142,241 BEGINNING FUND BALANCE January 1, 2012 2,184,680 1,570,419 4,350,183 10,135,919 ENDING FUND BALANCE June 30, 2012 1,579,939 2,074,293 4,144,982 10,278,160 18 Monthly Financial Report June 2012 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. InformationEquipment InsuranceFacilities Services Rental OPERATING REVENUES: Interfund Charges for Services - 1,718,550 2,067,552 1,498,839 Rents, Leases, Concessions & Other - 48,601 45,630 TOTAL OPERATING REVENUES - 1,767,151 2,113,182 1,498,839 OPERATING EXPENSES: Salaries & Wages - 325,937 656,456 214,519 Benefits - 142,838 267,932 84,353 Supplies - 49,019 113,864 452,718 Other Service Charges 605,750 480,117 851,858 204,076 Interfund Operating Rentals/Supplies - 48,948 144,540 106,939 Depreciation & Amortization - - 289,200 388,232 TOTAL OPERATING EXPENSES 605,750 1,046,859 2,323,851 1,450,837 OPERATING INCOME (LOSS)(605,750) 720,292 (210,669) 48,002 NON-OPERATING REVENUES & EXPENSES Interest Revenue 1,008 1,410 2,238 8,545 Other Non Operating Revenue - 7,292 - 531 Gain/Loss on Sale of Fixed Assets - - - 19,449 Other Non Operating Expense - - - - TOTAL NON-OPERATING REVENUES (EXPENSES)1,008 8,702 2,238 28,525 Plus Items Not Effecting Working Capital Depreciation - - 289,200 388,232 (604,741) 728,994 80,769 464,760 Increase in Contributions -Other Governments - - - - Increase in Contributions -Other Funds - - 3,230 72,714 Operating Transfers In - 97,380 - - TOTAL RESOURCES OTHER THAN OPERATIONS - 97,380 3,230 72,714 Net Change in Restricted Net Assets - - 3,230 17,693 Increase in Fixed Assets - Site Improvements - - - 18,493 Increase in Fixed Assets - Equipment - - 277,173 921,083 Increase in Fixed Assets - Construction - 98,701 - - Operating Transfers Out - 322,500 - 7,000 TOTAL USES OTHER THAN OPERATIONS - 421,201 280,403 964,269 NET CHANGE IN WORKING CAPITAL (604,741) 405,174 (196,404) (426,796) BEGINNING WORING CAPITAL January 1, 2012 2,184,680 1,622,449 3,118,686 5,793,165 ENDING WORKING CAPITAL June 30, 2012 1,579,939 2,027,622 2,922,282 5,366,369 NET CHANGE IN WORKING CAPITAL (604,741) 405,174 (196,404) (426,796) NET WORKING CAPITAL FROM OPERATIONS 19 Monthly Financial Report June 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. 20 SALES TAX SUMMARY JUNE 2012 SALES TAX DISTRIBUTIONS (FOR NOVEMBER - APRIL 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-Apr '11)(Nov '11-Apr '12)% Diff NAICS AUTOMOTIVE (Nov '10-Oct '11)(Nov '10-Apr '11)(Nov '11-Apr '12)% Diff 236 Construction of Buildings 582,840 238,722 201,870 -15.4%441 Motor Vehicle and Parts Dealer 2,560,962 1,235,812 1,334,982 8.0% 237 Heavy and Civil Construction 108,727 38,199 57,690 51.0%447 Gasoline Stations 224,459 107,710 108,849 1.1% 238 Specialty Trade Contractors 604,245 293,778 281,290 -4.3%TOTAL AUTOMOTIVE 2,785,421$ 1,343,523$ 1,443,831$ 7.5% TOTAL CONSTRUCTION 1,295,813$ 570,698$ 540,849$ -5.2%Overall Change from Previous Year 100,309$ Overall Change from Previous Year (29,849)$ 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-Apr '11)(Nov '11-Apr '12)% Diff NAICS MANUFACTURING (Nov '10-Oct '11)(Nov '10-Apr '11)(Nov '11-Apr '12)% Diff 442 Furniture and Home Furnishings 218,335 107,715 108,802 1.0% 311 Food Manufacturing 2,674 1,278 1,749 36.8%443 Electronics and Appliances 126,870 71,809 73,002 1.7% 312 Beverage and Tobacco Products 3,864 1,787 2,179 22.0%444 Building Material and Garden 382,504 167,062 182,609 9.3% 313 Textile Mills 959 336 56 -83.4%445 Food and Beverage Stores 330,776 161,006 160,675 -0.2% 314 Textile Product Mills 2,625 1,020 3,186 212.2%446 Health and Personal Care Store 148,387 76,433 77,736 1.7% 315 Apparel Manufacturing 2,519 2,385 189 -92.1%448 Clothing and Accessories 754,407 392,982 388,098 -1.2% 316 Leather and Allied Products 175 144 55 -62.0%451 Sporting Goods, Hobby, Books 126,042 68,497 65,603 -4.2% 321 Wood Product Manufacturing 24,075 11,487 10,158 -11.6%452 General Merchandise Stores 967,627 532,338 513,572 -3.5% 322 Paper Manufacturing 11,026 8,475 1,963 -76.8%453 Miscellaneous Store Retailers 489,259 240,090 226,197 -5.8% 323 Printing and Related Support 38,511 20,950 15,711 -25.0%454 Nonstore Retailers 235,923 122,334 129,972 6.2% 324 Petroleum and Coal Products 9,771 3,670 3,327 -9.3%TOTAL RETAIL TRADE 3,780,129$ 1,940,266$ 1,926,266$ -0.7% 325 Chemical Manufacturing 7,937 3,541 2,982 -15.8%Overall Change from Previous Year (14,000)$ 326 Plastics and Rubber Products 9,777 5,046 4,595 -8.9% 327 Nonmetallic Mineral Products 16,218 5,786 7,447 28.7% 331 Primary Metal Manufacturing 452 149 1,475 892.4%2011 Annual Total 2011 YTD 2012 YTD YTD332Fabricated Metal Product Manuf 19,661 10,329 6,750 -34.6%NAICS SERVICES (Nov '10-Oct '11)(Nov '10-Apr '11)(Nov '11-Apr '12)% Diff 333 Machinery Manufacturing 14,242 5,885 6,842 16.3%51*Information 481,043 202,280 193,853 -4.2% 334 Computer and Electronic Produc 16,776 9,741 4,396 -54.9%52*Finance and Insurance 65,518 33,548 15,200 b -54.7% 335 Electric Equipment, Appliances 780 118 263 123.1%53*Real Estate, Rental, Leasing 303,750 141,793 153,485 8.2% 336 Transportation Equipment Man 362,149 189,450 38,487 a -79.7%541 Professional, Scientific, Tech 174,718 94,936 85,471 -10.0% 337 Furniture and Related Products 13,135 5,606 9,432 68.2%551 Company Management 351 107 9 -91.6% 339 Miscellaneous Manufacturing 25,531 13,699 11,879 -13.3%56*Admin. Supp., Remed Svcs 294,603 151,794 137,187 -9.6% TOTAL MANUFACTURING 582,858$ 300,881$ 133,123$ -55.8%611 Educational Services 52,563 26,665 26,141 -2.0% Overall Change from Previous Year (167,758)$ 62*Health Care Social Assistance 40,737 15,974 17,281 8.2% 71*Arts and Entertainment 148,629 90,361 94,258 4.3% 72*Accomodation and Food Svcs 838,924 392,940 442,739 12.7% 2011 Annual Total 2011 YTD 2012 YTD YTD 81*Other Services 389,241 195,947 194,571 -0.7% NAICS TRANSPORTATION AND WAREHOUSING (Nov '10-Oct '11)(Nov '10-Apr '11)(Nov '11-Apr '12)% Diff 92*Public Administration 92,163 46,618 71,938 54.3% 481 Air Transportation 24 24 - -100.0%TOTAL SERVICES 2,882,241$ 1,392,963$ 1,432,134$ 2.8% 482 Rail Transportation 17,831 7,228 4,612 -36.2%Overall Change from Previous Year 39,171$ 484 Truck Transportation 36,261 32,119 6,535 -79.7% 485 Transit and Ground Passengers 68 45 234 416.2% 488 Transportation Support 18,083 8,573 8,351 -2.6%2011 Annual Total 2011 YTD 2012 YTD YTD 491 Postal Service 202 104 110 5.8%NAICS MISCELLANEOUS (Nov '10-Oct '11)(Nov '10-Apr '11)(Nov '11-Apr '12)% Diff 492 Couriers and Messengers 1,492 715 336 -53.0%000 Unknown 1,958 383 1 -99.7% 493 Warehousing and Storage 3,121 1,642 3,569 117.4%111-115 Agriculture, Forestry, Fishing 7,355 5,865 1,342 -77.1% TOTAL TRANSPORTATION 77,083$ 50,451$ 23,747$ -52.9%211-221 Mining & Utilities 21,830 6,837 11,432 67.2% Overall Change from Previous Year (26,704)$ 999 Unclassifiable Establishments 192,496 121,704 12,046 -90.1% TOTAL SERVICES 223,639$ 134,788$ 24,821$ -81.6% Overall Change from Previous Year (109,968)$ 2011 Annual Total 2011 YTD 2012 YTD YTD NAICS WHOLESALE TRADE (Nov '10-Oct '11)(Nov '10-Apr '11)(Nov '11-Apr '12)% Diff 423 Wholesale Trade, Durable Goods 1,095,905 569,234 552,784 -2.9%GRAND TOTAL 12,887,267$ 6,381,729$ 6,152,025$ 424 Wholesale Trade, Nondurable 150,480 75,530 72,087 -4.6%Overall Change from Previous Year (229,704)$ -3.6% 425 Wholesale Electronic Markets 13,698 3,395 2,383 -29.8% TOTAL WHOLESALE 1,260,083$ 648,159$ 627,254$ -3.2% Overall Change from Previous Year (20,905)$ 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: -$20,014). 06/30/12 file:Monthly Sales Tax Report.xls Prepared by Auburn Finance Department 21 Investment Purchase Purchase Maturity Yield to Type Date Price Date Maturity State Investment Pool Various 83,147,216$ Various 0.17% KeyBank Money Market Various 11,679,282 Various 0.15% US Treasury 05/04/1990 57,750 05/15/2016 5.72% FHLMC 12/19/2011 2,000,000 12/19/2014 1.000% Total Cash & Investments 96,884,247$ 0.192% Investment Mix % of Total State Investment Pool 85.8%Current 6-month treasury rate 0.15% KeyBank Money Market 12.1%Current State Pool rate 0.17% US Treasury 0.1%KeyBank Money Market 0.15% FHLMC 2.1%Blended Auburn rate 0.19% FNMA 0.0% 100.0% City of Auburn Investment Portfolio Summary June 30, 2012 Summary 22