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HomeMy WebLinkAboutNovember 2012 AGENDA BILL APPROVAL FORM Agenda Subject: November 2012 Financial Report Date: January 10, 2013 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 Citywide 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 November status report is based on financial data available as of December 28, 2012. Sales tax information represents business activity that occurred in September 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. The General Fund is on target with expectations for the year and is expected to end 2012 with a fund balance of approximately $12.1 million. Revenue collections totaled $49.7 million and are running ahead of budget-to-date of $46.3 million due primarily to increased revenues from building permits, plan check fees, property taxes and retail sales tax collections. Year to date property tax revenue collected exceed budget by $353,000 or 2.8%. Sales tax collections for the year exceed budget and prior year collections by $598,000 and $126,000 respectively. The month of November saw several large one-time fees related to new construction. These included building permit fees and development service fees related to The Outlet Collection-Seattle, the HCSA regional laundry facility, as well as several housing developments including Kersey III and Brandon Meadows. Expenses totaled $48.0 million and are running below budget of $53.1 million and compare to expenditures of $44.3 million for the same period last year. 2012 departmental expenses are below budget primarily due to the timing of payments to SCORE, earlier staff vacancies, and continued vigilance in monitoring general expenditures. 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 November, the Water fund ended with operating income of $1,105,000; the Sewer fund ended the period with a $620,300 operating loss; and the Storm Drainage fund ended with an operating loss of $393,000. The Golf Course ended the period with an operating loss of $271,700 as compared to an operating loss of $207,700 for the same period last year. Year-to-date rounds played at the Golf Course totaled 44,832 as compared to 44,462 the previous year. The Cemetery ended with a $125,100 year-to-date operating loss as compared to an operating loss of $221,500 for the previous year, reflecting increased lot and marker sales. 1 Agenda Subject: November 2012 Financial Report Date: 1/4/2013 Internal Service Funds: Internal Service Funds provide services to other City departments and include functions such as Insurance, Facilities, Information Services, and Equipment Rental. By the end of the year, revenues received from charges to internal client departments are projected to be sufficient to meet expenses. Investment Portfolio: The City’s total cash and investments at the end of November was $90.9 million compared to $92.2 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: January 22, 2013 Item Number: 2 Monthly Financial Report November 2012 General Fund 2011 Summary of Sources and Uses Annual BudgetYTD BudgetYTD ActualYTD ActualAmountPercentage OPERATING REVENUES Property Tax 12,562,565 12,458,065 12,810,965 12,436,989 352,900 2.8% Sales Tax 12,267,000 11,244,900 11,842,789 11,716,504 597,889 5.3% Sales Tax - Annexation Credit 1,383,730 1,269,830 1,398,456 1,343,269 128,626 10.1% Criminal Justice Sales Tax 1,212,900 1,115,700 1,281,874 1,240,245 166,174 14.9% Brokered Natural Gas Tax 260,000 241,200 283,453 278,289 42,253 17.5% City Utilities Tax 2,620,200 2,393,600 2,551,985 2,293,310 158,385 6.6% Admissions Tax 360,000 358,900 343,737 357,583 (15,163) -4.2% Electric Tax 3,275,000 3,275,000 3,151,923 3,092,930 (123,077) -3.8% Natural Gas Tax 1,295,820 1,295,820 1,113,400 1,120,789 (182,420) -14.1% Cable TV Franchise Fee 703,600 703,600 812,229 800,067 108,629 15.4% Cable TV Franchise Fee - Capital 75,000 75,000 62,871 63,678 (12,129) -16.2% Telephone Tax 2,012,400 1,884,100 1,786,503 1,876,946 (97,597) -5.2% Garbage Tax (external)150,000 141,900 103,946 140,638 (37,954) -26.7% Leasehold Excise Tax 50,000 33,000 28,792 29,711 (4,208) -12.8% Gambling Excise Tax 331,500 327,200 257,902 252,805 (69,298) -21.2% Taxes sub-total 38,559,715 36,817,815 37,830,824 37,043,752 1,013,009 2.8% Business License Fees 200,000 118,300 139,631 131,956 21,331 18.0% Building Permits 700,000 643,900 1,560,010 1,043,959 916,110 142.3% Other Licenses & Permits 229,000 213,000 374,993 446,806 161,993 76.1% Intergovernmental (Grants, etc.) - (1)5,497,433 4,989,299 5,252,175 5,042,981 262,876 5.3% Charges for Services: General Government Services 64,600 58,700 104,087 78,331 45,387 77.3% Public Safety 223,500 201,200 205,378 221,564 4,178 2.1% Development Services Fees 627,000 550,300 1,202,763 478,700 652,463 118.6% Culture and Recreation 920,000 865,100 822,299 750,340 (42,801) -4.9% Fines and Forfeits 1,499,800 1,389,400 1,405,019 1,813,989 15,619 1.1% Fees/Charges/Fines sub-total 9,961,333 9,029,199 11,066,355 10,008,625 2,037,156 22.6% Interests and Other Earnings 115,000 100,800 73,162 82,069 (27,638) -27.4% Rents, Leases and Concessions 311,000 275,400 272,284 302,193 (3,116) -1.1% Contributions and Donations 20,500 18,000 47,264 51,483 29,264 162.6% Other Miscellaneous 46,200 43,400 111,716 109,787 68,316 157.4% Transfers In 17,000 17,000 17,000 1,078,439 - 0.0% Insurance Recoveries- Capital & Operating 50,000 44,974 235,095 150,069 190,122 422.7% Other Revenues sub-total 559,700 499,574 756,521 1,774,039 256,947 51.4% Total Operating Revenues 49,080,748 46,346,588 49,653,700 48,826,416 3,307,112 7.1% Operating Expenditures Council & Mayor 869,890 793,990 815,315 712,355 (21,325) -2.7% Municipal Court & Probation 3,399,260 3,051,960 2,977,402 2,745,617 74,558 2.4% Human Resources 942,164 853,530 774,031 722,126 79,499 9.3% Finance 1,235,590 1,119,590 1,029,264 1,020,479 90,326 8.1% City Attorney 1,699,500 1,552,400 1,484,753 1,413,664 67,647 4.4% Planning 3,883,620 3,461,320 3,404,752 3,262,432 56,568 1.6% Community & Human Services 1,160,360 1,077,660 872,283 901,259 205,377 19.1% Jail - SCORE 4,764,750 4,260,550 3,019,159 4,199,912 1,241,391 29.1% Police 20,682,698 18,473,198 16,617,637 16,378,664 1,855,561 10.0% Engineering 2,718,870 2,441,770 2,286,305 2,031,591 155,465 6.4% Parks and Recreation 7,598,230 6,957,230 6,744,736 6,441,113 212,494 3.1% Streets 3,415,280 3,057,080 2,573,564 2,435,826 483,516 15.8% Non-Departmental 7,130,550 5,989,150 5,408,894 2,022,182 580,256 9.7% Total Operating Expenditures 59,500,762 53,089,428 48,008,093 44,287,220 5,081,335 9.6% 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 $1,733,563 in Streamlined Sales Tax Mitigation received from the state through November 2012. 3 Monthly Financial Report November 2012 Overview This financial overview reflects the City’s overall financial position for the fiscal period ending November 30, 2012 and represents financial data available as of December 28, 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 $49.7 million and were above budget by 7.1%, or $3.3 million. This period’s highlights include: - Tax revenues totaled $37.8 million and was $1.0 million above budget. - Sales taxes totaled $11.8 million and were $598,000 above budget. - Revenue from Fees/Charges/Fines totaled $11.1 million and was $2.0 million above budget due to stronger than budgeted revenue from development activity. - Other revenues totaled $757,000 and was 51% or $257,000 above budget primarily to insurance recoveries. General Fund expenses totaled $48.0 million compared to $44.3 million for the same period last year, reflecting one-time transfers to Cemetery, Golf Course debt and Cumulative Reserve funds. Departmental expenditures in 2012 continue to run under budget due to earlier vacancies, timing of SCORE payments, and continued vigilance in monitoring general spending. Savings in Community and Human Services reflect under-spending for human services contracts, which will be carried forward to 2013. Savings in the Streets Department reflect the timing of payments for utility services; this is expected to correct itself by the end of the 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 $12.8 million to date and exceeds budget by $353,000 or 2.8%. Total property tax collected during the month of November was $1.3 million and compares to $875,000 the same period last year. 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. 4 Monthly Financial Report November 2012 $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 Sales taxes totaled $11.8 million and exceeds budget by $598,000. $0.0 $2.0 $4.0 $6.0 $8.0 $10.0 $12.0 $14.0 JanFebMarAprMayJunJulAugSepOctNovDec Mi l l i o n s Sales & Use Tax 2012 budget 2012 actual to date 2011 actual 5 Monthly Financial Report November 2012 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 1,184,356 1,062,016 (122,340) -10.3% Manufacturing 533,379 364,442 (168,937) -31.7% Transportation & Warehousing70,870 54,706 (16,164) -22.8% Wholesale Trade 1,149,727 1,196,486 46,759 4.1% Automotive 2,550,466 2,777,326 226,860 8.9% Retail Trade 3,470,372 3,613,949 143,577 4.1% Services 2,580,962 2,719,423 138,461 5.4% Miscellaneous 212,110 57,335 (154,775) -73.0% YTD Total 11,752,242 11,845,683 93,441 0.8% Change from 2011 Year to Date through November Comparison of Sales Tax Collections by SIC Group As shown above, sales taxes by business sector totaled $11.8 million and are $93,000 more than the same period last year. $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). The following table presents utility tax collections by source: 6 Monthly Financial Report November 2012 201120122012 Month ActualBudgetActualAmountPercentageAmountPercentage City Interfund Utility Taxes2,293,310 2,393,600 2,551,985 258,674 11.3%158,385 6.6% Electric 3,092,930 3,275,000 3,151,923 58,993 1.9%(123,077) -3.8% Natural Gas 1,120,789 1,295,820 1,113,400 (7,389) -0.7%(182,420) -14.1% Telephone 1,876,946 1,884,100 1,786,503 (90,442) -4.8%(97,597) -5.2% Solid Waste 140,638 141,900 103,946 (36,692) -26.1%(37,954) -26.7% YTD Total 8,524,613 8,990,420 8,707,757 183,144 2.1%(282,663) -3.1% Year to Date through November Utility Tax by Type 2012 vs. 20112012 vs. Budget Cable TV Franchise Fees exceed budget by $109,000 and are comparable to 2011 levels. The final quarterly payment has been received – closing the year at $812,000 in collected revenue. $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. Year to date building permit revenues were $1.6 million and exceeded both budget and prior year levels of $644,000 and $1.0 million respectively. November revenue collected for building permits was $207,000 and included over $42,000 in building permit revenue generated by Kersey III subdivision and $24,000 from the Outlet Collection – Seattle. In general, building permit activity has increased, reflecting the broader trend of increased construction activity in the region. 7 Monthly Financial Report November 2012 $0 $200 $400 $600 $800 $1,000 $1,200 $1,400 $1,600 $1,800 JanFebMarAprMayJunJulAugSepOctNovDec Th o u s a n d s Building Permits 2012 budget 2012 actual to date 2011 actual Business License revenues totaled $140,000, compared to prior year collection rate of $132,000. 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 end the year at $226,000 and will exceed 2011 collection levels by $11,000 or 5%. $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 November 2012 Intergovernmental includes Grants (Direct & Indirect Federal, State and Local), State shared revenues and compact revenue from the Muckleshoot Indian Tribe. Collections totaled $5.3 million and exceeds budget by $263,000 or 5.3%. State shared revenue includes June 2012 disbursement of $188,000 by the State of Washington from the sale of state owned liquor stores1, as well as Streamlined Sales Tax of $1,733,563. 201120122012 Revenue ActualBudgetActual% Change% Change Federal Grants 412,864 515,592 607,502 47.1%17.8% State Grants 128,231 59,951 124,458 -2.9%107.6% Interlocal Grants 3,151 89,300 15,049 377.6%-83.1% State Shared Revenue 3,761,562 3,624,456 3,774,693 0.3%4.1% Muckleshoot Casino Emerg.712,294 700,000 711,063 -0.2%1.6% Intergovernmental Service 24,880 - 19,411 -22.0%N/A YTD Total 5,042,981 4,989,299 5,252,175 4.1%5.3% Year to Date through November Intergovernmental 2012 vs. 20112012 vs. Budget 201120122012 Revenue ActualBudgetActualAmountPercentageAmountPercentage Trial Court Improvements22,468 24,500 22,632 164 0.7%(1,868) -7.62% Court Interpreter Program6,643 11,760 13,174 6,531 98.32%1,414 12.02% Motor Vehicle Fuel Tax 906,172 882,350 898,282 (7,890) -0.9%15,932 1.8% Criminal Justice -High Crime146,442 - 149,088 2,645 1.8%149,088 N/A Criminal Justice -Population15,470 64,800 15,934 465 3.0%(48,866) -75.4% Criminal Justice -Spec. Prog.58,404 55,850 59,908 1,504 2.6%4,058 7.3% State DUI 14,720 7,000 13,217 (1,503) -10.2%6,217 88.8% Fire Insurance Premium Tax66,375 65,000 63,205 (3,170) 94.8%(1,795) -2.76% Liquor Excise Tax 335,127 159,430 260,420 (74,708) -22.3%100,990 63.3% Liquor Profits 367,156 558,000 545,271 178,115 48.5%(12,729) -2.28% Streamlined Sales Tax 1,822,586 1,795,766 1,733,563 (89,022) -4.9%(62,203) -3.46% YTD Total 3,761,562 3,624,456 3,774,693 13,131 0.3%150,237 4.1% Year to Date through November State Shared Revenues 2012 vs. 20112012 vs. Budget 1 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 November 2012 Charges for Services consists of general governmental services, public safety, development service fees and cultural & recreation fees and totaled $2.3 million. Development service fees and culture and recreation fees make up over 85% of the revenue within this category. Development services revenues totaled $1.2 million compared to budget of $550,000 due to strong development activity. November collections include plan check revenues of $71,000, of which $21,000 is attributable to the remodel of The Outlet Collection-Seattle. Culture and recreation revenues are improved over 2011 levels, reflecting increased registrations for summer camps, classes and league enrollment. 201120122012 Revenue ActualBudgetActualAmountPercentageAmountPercentage General Government 78,331 58,700 104,087 25,756 32.88%45,387 77.32% Public Safety 221,564 201,200 205,378 (16,186) -7.3%4,178 2.1% Development Services478,700 550,300 1,202,763 724,064 151.3%652,463 118.6% Culture & Recreation 750,340 865,100 822,299 71,960 9.6%(42,801) -4.9% YTD Total 1,528,935 1,675,300 2,334,527 805,592 52.7%659,227 39.3% Year to Date through November Charges for Services by Type 2012 vs. 20112012 vs. Budget $0 $200 $400 $600 $800 $1,000 $1,200 $1,400 JanFebMarAprMayJunJulAugSepOctNovDec Th o u s a n d s Development Service Fees 2012 budget 2012 actual to date 2011 actual 10 Monthly Financial Report November 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 $1.4 million and exceed budget by $16,000 or 1.1%. Revenue generated in November from the Red Light Photo Enforcement program was $45,000 higher than anticipated due to high volume of citations issued during the back to school season in the Fall. 201120122012 Month ActualBudgetActualAmountPercentageAmountPercentage Civil Penalties 17,388 13,100 14,317 (3,071) -17.7%1,217 9.3% Civil Infraction Penalties 610,696 511,900 518,897 (91,800) -15.0%6,997 1.4% Red Light Photo Enforcement775,954 456,700 546,254 (229,700) -29.6%89,554 19.6% Parking Infractions 162,276 158,000 96,478 (65,798) -40.5%(61,522) -38.9% Criminal Traffic Misdemeanor77,516 98,800 79,694 2,178 2.8%(19,106) -19.3% Criminal Non-Traffic Fines83,688 82,700 75,914 (7,774) -9.3%(6,786) -8.2% Criminal Costs 14,234 9,900 14,178 (56) -0.4%4,278 43.2% Non-Court Fines & Penalties72,238 58,300 59,288 (12,950) -17.9%988 1.7% YTD Total 1,813,989 1,389,400 1,405,019 (408,970) -22.5%15,619 1.1% Year to Date through November Fines & Forfeits by Type 2012 vs. 20112012 vs. Budget 11 Monthly Financial Report November 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 $100 $200 $300 $400 $500 $600 $700 $800 $900 JanFebMarAprMayJunJulAugSepOctNovDec Th o u s a n d s Photo Enforcement 2012 budget 2012 actual to date 2011 actual 12 Monthly Financial Report November 2012 Miscellaneous revenues include interest and other investment earnings, rents, leases & concessions, contributions & donations and other miscellaneous income. Revenues in this category totaled $504,000 and exceeds budget by $67,000. 201120122012 Month ActualBudgetActualAmountPercentageAmountPercentage Interest & Investments 82,069 100,800 73,162 (8,907) -10.9%(27,638) -27.4% Rents & Leases 302,193 275,400 272,284 (29,909) -9.9%(3,116) -1.1% Contributions & Donations51,483 18,000 47,264 (4,219) -8.2%29,264 162.6% Other Miscellaneous Revenue109,787 43,400 111,716 1,929 1.8%68,316 157.4% YTD Total 545,531 437,600 504,426 (41,105) -7.5%66,826 15.3% Miscellaneous Revenues by Type Year to Date through November 2012 vs. 20112012 vs. Budget Real Estate Excise Tax (REET) revenue is receipted into the Capital Improvement Projects Fund and is used for governmental capital projects. Year to date REET revenue totals $1.6 million and exceeds budget by $268,000. The revenue spike seen in the 4th quarter is primarily due to the sale of Auburn Regional Medical Center to Multicare. $0.0 $0.2 $0.4 $0.6 $0.8 $1.0 $1.2 $1.4 $1.6 $1.8 JanFebMarAprMayJunJulAugSepOctNovDec Mi l l i o n s Real Estate Excise Tax 2012 budget 2012 actual to date 2011 actual 13 Monthly Financial Report November 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 9,417,427 4,829,923 6,813,096 10,462,525 14,203 782,723 961,307 Sewer Metro Service Revenue - 11,933,861 - - - - - Rents, Leases, Concessions & Other - - - - 534,459 - 371,323 TOTAL OPERATING REVENUES 9,417,427 16,763,784 6,813,096 10,462,525 548,662 782,723 1,332,630 OPERATING EXPENSES: Administration 2,244,394 1,782,348 2,357,731 674,478 476,541 268,742 207,345 Operations & Maintenance 4,076,532 2,470,138 3,509,895 1,250,753 10,000 576,258 1,109,772 Waste Management Payments - - - 7,532,937 - - - Sewer Metro Services - 11,529,484 - - - - - Depreciation & Amortization 1,991,422 1,602,088 1,338,448 17,251 363,803 62,840 287,191 TOTAL OPERATING EXPENSES 8,312,348 17,384,058 7,206,074 9,475,419 850,344 907,840 1,604,308 OPERATING INCOME (LOSS)1,105,079 (620,274) (392,978) 987,106 (301,682) (125,117) (271,678) NON-OPERATING REVENUES & EXPENSES Interest Revenue 33,319 31,212 17,044 766 1,954 355 787 Other Non Operating Revenue 273,301 101,361 112,351 102,583 870 14,617 9,846 Other Non Operating Expense (28,816) (20,541) - - (50,475) (22,267) (410) TOTAL NON-OPERATING REVENUES (EXPENSES)277,803 112,032 129,396 103,349 (47,651) (7,295) 10,223 1,382,882 (508,242) (263,582) 1,090,455 (349,333) (132,412) (261,454) Contributions 447,622 269,793 531,703 - - - - Transfers In - - - - - 222,300 48,067 Transfers Out (50,000) (50,000) (50,000) - - - - TOTAL CONTRIBUTIONS & TRANSFERS 397,622 219,793 481,703 - - 222,300 48,067 CHANGE IN FUND BALANCE 1,780,504 (288,449) 218,122 1,090,455 (349,333) 89,888 (213,387) BEGINNING FUND BALANCE January 1, 201263,028,695 73,274,006 47,772,204 760,681 9,731,158 814,709 5,144,962 ENDING FUND BALANCE November 30, 201264,809,199 72,985,558 47,990,325 1,851,137 9,381,825 904,597 4,931,575 INCOME (LOSS) BEFORE CONTRIBUTIONS & TRANSFERS 14 Monthly Financial Report November 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 9,417,427 4,829,923 6,813,096 10,462,525 14,203 782,723 961,307 Sewer Metro Service Revenue - 11,933,861 - - - - - Rents, Leases, Concessions & Other - - - - 534,459 - 371,323 TOTAL OPERATING REVENUES 9,417,427 16,763,784 6,813,096 10,462,525 548,662 782,723 1,332,630 OPERATING EXPENSES: Salaries & Wages 1,908,574 1,261,065 1,757,350 362,912 18,140 405,755 519,166 Benefits 844,102 543,011 752,200 157,088 5,733 195,634 247,105 Supplies 183,810 59,973 69,687 44,197 - 127,407 250,898 Other Service Charges 2,365,434 1,688,090 2,044,604 894,807 462,668 55,605 151,437 Intergovernmental Services - - 20,003 297,101 - - - Waste Management Payments - - - 7,532,937 - - - Sewer Metro Services - 11,529,484 - - - - - Interfund Operating Rentals/Supplies 1,019,006 700,349 1,220,560 169,125 - 60,599 148,511 Other Expenses - 3,222 - - - - Depreciation & Amortization 1,991,422 1,602,088 1,338,448 17,251 363,803 62,840 287,191 TOTAL OPERATING EXPENSES 8,312,348 17,384,058 7,206,074 9,475,418 850,344 907,841 1,604,308 OPERATING INCOME (LOSS)1,105,079 (620,274) (392,977) 987,107 (301,683) (125,117) (271,678) NON-OPERATING REVENUES & EXPENSES Interest Revenue 33,319 31,212 17,044 766 1,954 355 787 Contributions 37,954 24,561 43,930 101,823 - 13,279 9,846 Other Non Operating Revenue 235,347 76,800 68,422 760 870 1,388 - Gain (Loss) on Sale of Fixed Assets - - - - - (50) - Debt Service Interest (28,816) (20,541) - - (50,475) (22,267) (410) TOTAL NON-OPERATING REVENUES (EXPENSES)277,803 112,032 129,396 103,349 (47,651) (7,295) 10,223 Plus Items Not Effecting Working Capital Depreciation 1,991,422 1,602,088 1,338,448 17,251 363,803 62,840 287,191 3,374,304 1,093,845 1,074,866 1,107,707 14,470 (69,572) 25,737 Increase in Contributions -System Development444,416 269,793 531,703 - - - - Increase in Contributions -Area Assessments 3,206 - - - - - - Increase in Contributions -Other Governments - - - - - - - Operating Transfers In - - - - - 222,300 48,067 Increase in Restricted Net Assets 13,673 40,571 - - (14,285) - Decrease in Long term Receivables - 45,000 - - - - - Increase in Deferred Credits - - - - 9,812 - - TOTAL RESOURCES OTHER THAN OPERATIONS461,295 355,365 531,703 - (4,473) 222,300 48,067 Net Change in Restricted Net Assets 843,282 284,389 336,961 - (119,866) (50) (17,136) Increase in Fixed Assets - Salaries 142,875 90,625 55,483 - - - Increase in Fixed Assets - Benefits 56,065 35,595 21,251 - - - - Increase in Fixed Assets - Site Improvements 51,338 - - - 19,054 - - Increase in Fixed Assets - Equipment 94,816 - - - - - - Increase in Fixed Assets - Construction 8,837,363 1,617,013 797,160 - 82,790 - - Operating Transfers Out 50,000 50,000 50,000 - - - - Debt Service Principal 435,568 288,262 - - 105,000 - - TOTAL USES OTHER THAN OPERATIONS 10,511,308 2,365,884 1,260,855 - 86,978 (50) (17,136) NET CHANGE IN WORKING CAPITAL (6,675,709) (916,674) 345,715 1,107,707 (76,982) 152,778 90,940 BEGINNING WORING CAPITAL January 1, 201216,945,811 12,806,527 9,102,000 632,263 961,633 71,820 68,320 ENDING WORKING CAPITAL November 30, 201210,270,102 11,889,853 9,447,714 1,739,970 884,652 224,598 159,260 NET CHANGE IN WORKING CAPITAL (6,675,709) (916,674) 345,715 1,107,707 (76,982) 152,778 90,940 NET WORKING CAPITAL FROM OPERATIONS 15 Monthly Financial Report November 2012 The Water Utility’s position improved to $1,105,000 in net operating income and compares to $474,900 for the same period in 2011. - 200,000 400,000 600,000 800,000 1,000,000 1,200,000 1,400,000 JanFebMarAprMayJunJulAugSepOctNovDec Water Revenues ($) vs Water Sold (ccf) 2011 -Present 2011 Water Sales ($) 2012 Water Sales ($) 2011 Water Sold (ccf) 2012 Water Sold (ccf) The Sewer Utility’s position improved to a $620,300 net operating loss and compares to a $2.3 million net loss for the same period in 2011. The Stormwater Utility ended the period with a $393,000 net operating loss and compares to $345,500 in net income for the same period last year. The number of rounds played at the Auburn Golf Course (AGC) through November totaled 44,832 as compared to 44,462 for the same period last year. The AGC ended November with a net operating loss of $271,700 as compared to a loss of $207,700 for the same period last year. 0 50,000 100,000 150,000 200,000 250,000 300,000 350,000 JanFebMarAprMayJunJulAugSepOctNovDec Golf Course Operating Revenues by Month (2012 vs 2011) 2012 Monthly Budget 2012 Actual 2011 Actual 0 200,000 400,000 600,000 800,000 1,000,000 1,200,000 1,400,000 1,600,000 1,800,000 2,000,000 JanFebMarAprMayJunJulAugSepOctNovDec Cumulative Golf Course Operating Revenues (2012 vs 2011) 2012 Cumulative Budget 2012 Cumulative 2011 Cumulative 16 Monthly Financial Report November 2012 The Cemetery Fund ended November with a $125,100 net operating loss as compared to a $221,500 net operating loss for the same period last year, reflecting increased revenues from lot and marker sales. 0 20,000 40,000 60,000 80,000 100,000 120,000 140,000 JanFebMarAprMayJunJulAugSepOctNovDec Cemetery Operating Revenues by Month (2012 vs 2011) 2012 Monthly Budget 2012 Actual 2011 Actual 0 100,000 200,000 300,000 400,000 500,000 600,000 700,000 800,000 900,000 1,000,000 JanFebMarAprMayJunJulAugSepOctNovDec Cumulative Cemetery Operating Revenues (2012 vs 2011) 2012 Cumulative Budget 2012 Cumulative 2011 Cumulative 17 Monthly Financial Report November 2012 Internal Service Funds The following table provides an analysis of the City’s Internal Service funds – showing 2012 revenues and expenditures by fund. InnovationEquipment InsuranceFacilities& TechnologyRental OPERATING REVENUES: Interfund Charges for Services - 3,150,675 3,790,512 2,748,985 Rents, Leases, Concessions & Other - 125,979 76,550 - TOTAL OPERATING REVENUES - 3,276,654 3,867,062 2,748,985 OPERATING EXPENSES: Administration 243,592 - - 654,683 Operations & Maintenance - 2,998,366 3,736,291 1,290,542 Depreciation & Amortization - - 510,147 797,668 TOTAL OPERATING EXPENSES 243,592 2,998,366 4,246,438 2,742,893 OPERATING INCOME (LOSS)(243,592) 278,288 (379,376) 6,092 NON-OPERATING REVENUES & EXPENSES Interest Revenue 2,797 3,338 5,265 13,935 Other Non Operating Revenue - 13,072 526 13,546 Gain/Loss on Sale of Fixed Assets - - - 19,504 Other Non Operating Expense - - - - TOTAL NON-OPERATING REVENUES (EXPENSES)2,797 16,410 5,791 46,985 INCOME (LOSS) BEFORE CONTRIBUTIONS & TRANSFERS(240,795) 294,698 (373,585) 53,077 Contributions - - 54,986 103,551 Transfers In - 300,000 - - Transfers Out - (644,787) - (7,000) TOTAL CONTRIBUTIONS & TRANSFERS - (344,787) 54,986 96,551 CHANGE IN FUND BALANCE (240,795) (50,089) (318,599) 149,628 BEGINNING FUND BALANCE January 1, 2012 2,184,680 1,570,419 4,350,183 10,135,919 ENDING FUND BALANCE November 30, 2012 1,943,885 1,520,329 4,031,585 10,285,547 18 Monthly Financial Report November 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. InnovationEquipment InsuranceFacilities& TechnologyRental OPERATING REVENUES: Interfund Charges for Services - 3,150,675 3,790,512 2,748,985 Rents, Leases, Concessions & Other - 125,979 76,550 TOTAL OPERATING REVENUES - 3,276,654 3,867,062 2,748,985 OPERATING EXPENSES: Salaries & Wages - 595,971 1,207,043 389,832 Benefits - 259,195 484,987 159,161 Supplies - 105,200 312,410 834,268 Other Service Charges 243,592 1,151,496 1,466,860 365,946 Interfund Operating Rentals/Supplies - 89,738 264,990 196,017 Other Expenses - 796,766 - - Depreciation & Amortization - - 510,147 797,668 TOTAL OPERATING EXPENSES 243,592 2,998,366 4,246,438 2,742,892 OPERATING INCOME (LOSS)(243,592) 278,288 (379,376) 6,093 NON-OPERATING REVENUES & EXPENSES Interest Revenue 2,797 3,338 5,265 13,935 Contributions - 13,072 - - Other Non Operating Revenue - - 526 13,546 Gain/Loss on Sale of Fixed Assets - - - 19,504 Other Non Operating Expense - - - - TOTAL NON-OPERATING REVENUES (EXPENSES)2,797 16,410 5,791 46,985 Plus Items Not Effecting Working Capital Depreciation - - 510,147 797,668 (240,795) 294,698 136,562 850,746 Increase in Contributions -Other Governments - - 51,756 - Increase in Contributions -Other Funds - - 3,230 103,551 Operating Transfers In - 300,000 - - TOTAL RESOURCES OTHER THAN OPERATIONS - 300,000 54,986 103,551 Net Change in Restricted Net Assets - - 3,230 34,575 Increase in Fixed Assets - Site Improvements - - - 18,493 Increase in Fixed Assets - Equipment - - 385,170 1,265,569 Increase in Fixed Assets - Construction - - 51,756 29,276 Operating Transfers Out - 644,787 - 7,000 TOTAL USES OTHER THAN OPERATIONS - 644,787 440,157 1,354,913 NET CHANGE IN WORKING CAPITAL (240,795) (50,089) (248,608) (400,617) BEGINNING WORING CAPITAL January 1, 2012 2,184,680 1,622,449 3,118,686 5,793,165 ENDING WORKING CAPITAL November 30, 2012 1,943,885 1,572,359 2,870,078 5,392,548 NET CHANGE IN WORKING CAPITAL (240,795) (50,089) (248,608) (400,617) NET WORKING CAPITAL FROM OPERATIONS 19 Monthly Financial Report November 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 Innovation & Technology Fund ended with a net loss, reflecting the timing of expenses. 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 NOVEMBER 2012 SALES TAX DISTRIBUTIONS (FOR NOVEMBER - SEPTEMBER 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-Sep '11)(Nov '11-Sep '12)% Diff NAICS AUTOMOTIVE (Nov '10-Oct '11)(Nov '10-Sep '11)(Nov '11-Sep '12)% Diff 236 Construction of Buildings 582,840 549,108 412,439 -24.9%441 Motor Vehicle and Parts Dealer 2,560,962 2,343,781 2,571,637 9.7% 237 Heavy and Civil Construction 108,727 91,692 102,863 12.2%447 Gasoline Stations 224,459 206,685 205,688 -0.5% 238 Specialty Trade Contractors 604,245 543,556 546,713 0.6%TOTAL AUTOMOTIVE 2,785,421$ 2,550,466$ 2,777,326$ 8.9% TOTAL CONSTRUCTION 1,295,813$ 1,184,356$ 1,062,016$ -10.3%Overall Change from Previous Year 226,860$ Overall Change from Previous Year (122,340)$ 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-Sep '11)(Nov '11-Sep '12)% Diff NAICS MANUFACTURING (Nov '10-Oct '11)(Nov '10-Sep '11)(Nov '11-Sep '12)% Diff 442 Furniture and Home Furnishings 218,335 202,540 206,024 1.7% 311 Food Manufacturing 2,674 2,454 2,849 16.1%443 Electronics and Appliances 126,870 117,956 135,722 15.1% 312 Beverage and Tobacco Products 3,864 3,635 5,300 45.8%444 Building Material and Garden 382,504 353,566 393,428 11.3% 313 Textile Mills 959 951 99 -89.6%445 Food and Beverage Stores 330,776 304,417 311,666 2.4% 314 Textile Product Mills 2,625 2,319 4,270 84.1%446 Health and Personal Care Store 148,387 137,105 138,000 0.7% 315 Apparel Manufacturing 2,519 2,498 214 -91.4%448 Clothing and Accessories 754,407 696,014 710,605 2.1% 316 Leather and Allied Products 175 167 59 -64.8%451 Sporting Goods, Hobby, Books 126,042 118,312 112,882 -4.6% 321 Wood Product Manufacturing 24,075 21,918 27,125 23.8%452 General Merchandise Stores 967,627 894,056 896,185 0.2% 322 Paper Manufacturing 11,026 10,540 3,556 -66.3%453 Miscellaneous Store Retailers 489,259 428,152 462,778 8.1% 323 Printing and Related Support 38,511 35,969 25,904 -28.0%454 Nonstore Retailers 235,923 218,255 246,658 13.0% 324 Petroleum and Coal Products 9,771 8,842 9,431 6.7%TOTAL RETAIL TRADE 3,780,129$ 3,470,372$ 3,613,949$ 4.1% 325 Chemical Manufacturing 7,937 7,332 7,126 -2.8%Overall Change from Previous Year 143,576$ 326 Plastics and Rubber Products 9,777 8,779 8,674 -1.2% 327 Nonmetallic Mineral Products 16,218 14,964 15,818 5.7% 331 Primary Metal Manufacturing 452 282 1,766 525.4%2011 Annual Total 2011 YTD 2012 YTD YTD 332 Fabricated Metal Product Manuf 19,661 18,255 21,718 19.0%NAICS SERVICES (Nov '10-Oct '11)(Nov '10-Sep '11)(Nov '11-Sep '12)% Diff 333 Machinery Manufacturing 14,242 12,725 11,859 -6.8%51*Information 481,043 361,148 360,237 -0.3% 334 Computer and Electronic Produc 16,776 15,802 8,569 -45.8%52*Finance and Insurance 65,518 60,120 47,067 b -21.7% 335 Electric Equipment, Appliances 780 773 358 -53.7%53*Real Estate, Rental, Leasing 303,750 277,691 280,971 1.2% 336 Transportation Equipment Man 362,149 329,518 169,255 a -48.6%541 Professional, Scientific, Tech 174,718 163,239 158,654 -2.8% 337 Furniture and Related Products 13,135 12,106 17,310 43.0%551 Company Management 351 108 16 -85.5% 339 Miscellaneous Manufacturing 25,531 23,548 23,182 -1.6%56*Admin. Supp., Remed Svcs 294,603 276,788 314,662 13.7% TOTAL MANUFACTURING 582,858$ 533,379$ 364,442$ -31.7%611 Educational Services 52,563 50,187 50,501 0.6% Overall Change from Previous Year (168,937)$ 62*Health Care Social Assistance 40,737 37,378 28,238 -24.5% 71*Arts and Entertainment 148,629 143,590 147,906 3.0% 72*Accomodation and Food Svcs 838,924 767,921 841,986 9.6% 2011 Annual Total 2011 YTD 2012 YTD YTD 81*Other Services 389,241 357,132 358,095 0.3% NAICS TRANSPORTATION AND WAREHOUSING (Nov '10-Oct '11)(Nov '10-Sep '11)(Nov '11-Sep '12)% Diff 92*Public Administration 92,163 85,661 131,090 53.0% 481 Air Transportation 24 24 - -100.0%TOTAL SERVICES 2,882,241$ 2,580,962$ 2,719,423$ 5.4% 482 Rail Transportation 17,831 13,937 18,873 35.4%Overall Change from Previous Year 138,461$ 484 Truck Transportation 36,261 35,585 12,288 -65.5% 485 Transit and Ground Passengers 68 68 268 292.1% 488 Transportation Support 18,083 16,721 17,247 3.1%2011 Annual Total 2011 YTD 2012 YTD YTD 491 Postal Service 202 184 401 117.6%NAICS MISCELLANEOUS (Nov '10-Oct '11)(Nov '10-Sep '11)(Nov '11-Sep '12)% Diff 492 Couriers and Messengers 1,492 1,457 568 -61.0%000 Unknown 1,958 1,958 1 -99.9% 493 Warehousing and Storage 3,121 2,893 5,060 74.9%111-115 Agriculture, Forestry, Fishing 7,355 7,249 2,761 -61.9% TOTAL TRANSPORTATION 77,083$ 70,870$ 54,706$ -22.8%211-221 Mining & Utilities 21,830 20,523 28,865 40.6% Overall Change from Previous Year (16,164)$ 999 Unclassifiable Establishments 192,496 182,380 25,709 -85.9% TOTAL SERVICES 223,639$ 212,110$ 57,335$ -73.0% Overall Change from Previous Year (154,775)$ 2011 Annual Total 2011 YTD 2012 YTD YTD NAICS WHOLESALE TRADE (Nov '10-Oct '11)(Nov '10-Sep '11)(Nov '11-Sep '12)% Diff 423 Wholesale Trade, Durable Goods 1,095,905 998,555 1,052,070 5.4%GRAND TOTAL 12,887,267$ 11,752,242$ 11,845,682$ 424 Wholesale Trade, Nondurable 150,480 139,320 139,610 0.2%Overall Change from Previous Year 93,440$ 0.8% 425 Wholesale Electronic Markets 13,698 11,852 4,806 -59.5% TOTAL WHOLESALE 1,260,083$ 1,149,727$ 1,196,486$ 4.1% Overall Change from Previous Year 46,759$ 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: -$20,014). 11/19/12 file:Monthly Sales Tax Report.xls Prepared by Auburn Finance Department 21 Investment Purchase Purchase Maturity Yield to Type Date Price Date Maturity State Investment Pool Various 80,232,575$ Various 0.18% KeyBank Money Market Various 8,612,154 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 90,902,479$ 0.198% Investment Mix % of Total State Investment Pool 88.3%Current 6-month treasury rate 0.15% KeyBank Money Market 9.5%Current State Pool rate 0.18% US Treasury 0.1%KeyBank Money Market 0.15% FHLMC 2.2%Blended Auburn rate 0.20% 100.0% City of Auburn Investment Portfolio Summary November 30, 2012 Summary 22