HomeMy WebLinkAbout2016 CAFR2016 COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE YEAR ENDED DECEMBER 31, 2016
CITY OF AUBURN
WASHINGTON
COMPREHENSIVE ANNUAL
FINANCIAL REPORT
Fiscal Year January 1, 2016 through December 31, 2016
Prepared by
Finance Department
Shelley Coleman, Finance Director
City of Auburn: 2016 CAFR Table of Contents
i
COMPREHENSIVE ANNUAL FINANCIAL REPORT
For the Year Ended December 31, 2016
TABLE OF CONTENTS
I. INTRODUCTORY SECTION Page
Title Page
Table of Contents ....................................................................................................................................................... i
City Officials ................................................................................................................................................................ 1
Organizational Chart ................................................................................................................................................. 2
Letter of Transmittal ................................................................................................................................................. 3
Certificate of Achievement ....................................................................................................................................... 9
II. FINANCIAL SECTION
Auditor’s Report ....................................................................................................................................................... 11
Management’s Discussion and Analysis .................................................................................................................. 15
Basic Financial Statements
Government-wide Financial Statements:
Statement of Net Position............................................................................................................................. 35
Statement of Activities .................................................................................................................................. 36
Fund Financial Statements:
Governmental Funds
Balance Sheet ............................................................................................................................................. 40
Reconciliation of Balance Sheet of Government Funds to the Statement of Net Position .................... 41
Statement of Revenues, Expenses and Changes in Fund Balances ........................................................ 42
Reconciliation of the Statement of Revenues, Expenditures, and Changes in
Fund Balances of Government Funds to the Statement of Activities .................................................. 43
Statement of Revenues, Expenses and Changes in Fund Balances – Budget and Actual:
General Fund ........................................................................................................................................... 44
Arterial Street Fund ................................................................................................................................ 45
Proprietary Funds:
Statement of Net Position ......................................................................................................................... 48
Statement of Revenues, Expenses, and Changes in Fund Net Position .................................................. 49
Statement of Cash Flows ........................................................................................................................... 50
Fiduciary Funds:
Statement of Fiduciary Net Position ......................................................................................................... 54
Notes to the Financial Statements ................................................................................................................... 55
Required Supplemental Information
Schedule of Proportionate Share of the Net Pension Liability PERS 1 .................................................... 101
Schedule of Proportionate Share of the Net Pension Liability PERS 2/3 ................................................. 101
Schedule of Proportionate Share of the Net Pension Liability LEOFF 1 .................................................. 101
Schedule of Proportionate Share of the Net Pension Liability LEOFF 2 .................................................. 102
Schedule of Employer Contributions PERS 1............................................................................................. 103
Schedule of Employer Contributions PERS 2/3 ......................................................................................... 103
Schedule of Employer Contributions LEOFF 2 .......................................................................................... 103
Firefighter’s Pension Fund-Schedule of Funding Progress ...................................................................... 104
Firefighter’s Pension Fund-Schedule of Employer Contributions ............................................................ 104
Retiree Medical & Long-Term Care Benefits LEOFF 1-Schedule of Funding Progress ............................ 105
Retiree Medical & Long-Term Care Benefits LEOFF 1-Schedule of Employer Contributions .................. 105
City of Auburn: 2016 CAFR Table of Contents
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Page
Combining and Individual Fund Financial Statements and Schedules
Non-Major Government Funds:
Combining Balance Sheet .......................................................................................................................... 108
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances .............................. 109
Non-Major Special Revenue Funds:
Combining Balance Sheet .......................................................................................................................... 112
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances .............................. 114
Statement of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual:
Local Street Special Revenue Fund ....................................................................................................... 116
Hotel/Motel Tax Special Revenue Fund ................................................................................................ 117
Arterial Street Preservation Special Revenue Fund .............................................................................. 118
Drug Forfeiture Special Revenue Fund ................................................................................................. 119
Housing & Community Development Special Revenue Fund .............................................................. 120
Recreation Trails Special Revenue Fund ............................................................................................... 121
Business Improvement Area Special Revenue Fund ............................................................................ 122
Cumulative Reserve Special Revenue Fund .......................................................................................... 123
Mitigation Special Revenue Fund .......................................................................................................... 124
Non-Major Debt Service Funds:
Combining Balance Sheet .......................................................................................................................... 126
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances .............................. 127
Capital Project Funds:
Combining Balance Sheet .......................................................................................................................... 130
Combining Statement of Revenues, Expenditures, and Changes in Fund Balance ................................ 131
Permanent Fund:
Balance Sheet ............................................................................................................................................. 134
Statement of Revenues, Expenditures and Changes in Fund Balance .................................................... 135
Non-Major Enterprise Funds:
Combining Statement of Net Position ...................................................................................................... 138
Combining Statement of Revenues, Expenses, and Changes in Net Position ........................................ 139
Combining Statement of Cash Flows ........................................................................................................ 140
Internal Service Funds:
Combining Statement of Net Position ...................................................................................................... 144
Combining Statement of Revenues, Expenses, and Changes in Net Position ........................................ 145
Combining Statement of Cash Flows ........................................................................................................ 146
Agency Fund:
Statement of Changes in Assets and Liabilities ........................................................................................ 150
City of Auburn: 2016 CAFR Table of Contents
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III. STATISTICAL SECTION
Schedule Page
Net Position by Components .................................................................................................................. 1............... 152
Changes in Net Positions ......................................................................................................................... 2............... 153
Fund Balances, Government Funds ........................................................................................................ 3............... 154
Changes in Fund Balances, Government Funds .................................................................................... 4............... 155
Tax Revenues by Source, Government Funds ....................................................................................... 5............... 156
Assessed Value by Type.......................................................................................................................... 6............... 157
Property Tax Data.................................................................................................................................... 7............... 158
Property Tax Levies and Collections ...................................................................................................... 8...............160
Principal Taxpayers – Property Taxes .................................................................................................... 9............... 161
Retail Tax Collections by Sector............................................................................................................ 10............... 162
Ratios of Outstanding Debt by Type ..................................................................................................... 11............... 163
Computation of Legal Debt Margin ...................................................................................................... 12...............164
Legal Debt Margin Ratios ...................................................................................................................... 13...............164
Computation of Net Direct and Estimated Overlapping Debt ............................................................ 14............... 165
Ratios of Net General Bonded Debt to Assessed Value ...................................................................... 15...............166
Pledged Revenue Bond Coverages ...................................................................................................... 16............... 167
Population, Income and Housing Trends ............................................................................................. 17...............168
Major Employers.................................................................................................................................... 18...............169
Staffing Levels by Department ............................................................................................................. 19............... 170
Operating Indicators by Department ...................................................................................................20............... 171
Capital Asset Indicators by Department .............................................................................................. 21............... 172
Utility Customers by Customer Class .................................................................................................... 22............... 172
City of Auburn: 2016 CAFR Table of Contents
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1
CITY COUNCIL
CITY OFFICIALS
MAYOR
Nancy Backus
Claude DaCorsi John Holman Bob Baggett
Bill Peloza Yolanda Trout-Manuel Rich Wagner Largo Wales
DEPARTMENT DIRECTORS
Finance Director Shelley Coleman
City Attorney Dan Heid
Human Resources / Risk & Property Mgmt. Director Rob Roscoe
Innovation & Technology Director Paul Haugan
Parks, Arts and Recreation Director Daryl Faber
Community Development & Public Works Director Kevin Snyder
Police Chief Bob Lee
Administration Director Dana Hinman
2
Citizens
Mayor
Nancy Backus
City Council
Director of HR &
Risk/Property Mgmt.
Rob Roscoe
City Attorney
Dan Heid
Police Chief
Bob Lee
Director of Innovation
and Technology
Paul Haugan
Director of
Administration
Dana Hinman
Community
Development
& Public Works
Kevin Snyder
Parks, Art and
Recreation Director
Daryl Faber
Finance Director
Shelley Coleman
3
June 20, 2017
Honorable Nancy Backus, Mayor
Members of the Auburn City Council
Citizens of the City of Auburn
25 W Main Street
Auburn, WA 98001
We are pleased to present the City’s Comprehensive Annual Financial Report for the year ended December
31, 2016. We publish this financial statement in conformity with generally accepted accounting principles
(GAAP). It has been audited in accordance with generally accepted auditing standards by the Washington
State Auditor’s Office.
Therefore, we issue and transmit to you the City of Auburn’s Comprehensive Annual Financial Report (CAFR)
for the fiscal year ended December 31, 2016. This transmittal letter provides an overview of the report and
the financial condition of the City. It also provides insight into the history of the City and the economic
conditions affecting it, and describes the systems and controls employed by the Finance department.
The Comprehensive Annual Financial Report has several significant uses. First, it provides a general overview
of the City’s finances to the general public and taxpayers. Second, it is referenced by bond buyers and rating
agencies to evaluate the City’s fiscal stability and creditworthiness. Finally, the CAFR is a series of financial
statements that have been audited by the State Auditor’s Office and provides assurances that assets are
safeguarded and funds are expended as they were legally appropriated in the biennial budget.
I. INTRODUCTION
A. Management Representation
The Auburn Finance Department prepared the report and accepts complete responsibility for the accuracy,
completeness, and fairness of presentation of the information included. The data is believed to be accurate
in all material respects, and it is believed that all significant information necessary for an understanding of
the affairs and financial condition of the City has been disclosed. The report has been prepared in
conformance with generally accepted accounting principles and in conformance with financial reporting
standards issued by the Governmental Accounting Standards Board (GASB).
City management has developed and evaluated a comprehensive internal control structure that is designed
to protect the City’s assets from loss, theft, or misuse and to compile sufficient reliable information for the
preparation of the City’s financial statements in conformity with generally accepted accounting principles.
Because the cost of internal controls should not outweigh the benefits, the City’s internal control structure
is designed to provide reasonable, rather than absolute, assurance that the financial statements will be free
from material misstatement. As management, we attest that, to the best of our knowledge and belief, this
financial report is complete and reliable in all material aspects.
City of Auburn: 2016 CAFR Letter of Transmittal
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GAAP requires that management provide a narrative introduction, overview and analysis to accompany the
basic financial statements in the form of Management’s Discussion and Analysis (MD&A). This letter of
transmittal is designed to complement the MD&A and should be read in conjunction with it. Auburn’s MD&A
can be found immediately following the independent auditor’s report.
B. Organization of the Report
The report is divided into three sections: the Introductory Section, the Financial Section, and the Statistical
Section. The Introductory Section contains the table of contents, a list of the City’s principal officials, an
organizational chart, this letter of transmittal, and the Certificate of Achievement for Excellence in Financial
Reporting from the Government Finance Officers’ Association of the United States and Canada for the 2015
CAFR. The Financial Section contains the Washington State Auditor’s Report, completed by the Washington
State Auditor, Management’s Discussion and Analysis, Government-Wide Financial Statements, the Fund
Financial Statements, Notes to the Financial Statements and Other Required Combining and Supplemental
Information. The Statistical Section, which is unaudited, contains a range of statistical tables and charts that
present various financial, economic, social, and demographic data about the City. This information depicts
various trends that have affected the fiscal condition of the City over the last ten years. The data presented
in this section complies with the requirements of GASB Statement No. 44, Economic Condition Reporting: The
Statistical Section.
C. Reporting Entity
The City of Auburn was incorporated in 1891 and currently operates as a non-charter Code City under the laws
of the State of Washington. Code City status in Washington provides “home rule” authority to cities. Auburn
has a Mayor/Council form of government; the Mayor is elected and is the full-time Chief Administrator. The
seven-member City Council is elected at large, rather than by district. Members of the City Council are
responsible for establishing the general direction and policies for the City and for providing the resources
necessary to carry out those policies. As the City’s chief administrator, the Mayor is responsible for carrying
out the policy and direction set by the City Council. This includes the enforcement of laws and ordinances,
the execution of contracts and agreements, and maintenance of peace and order in the city. The City is
located primarily in southern King County (county seat, Seattle) and a small northeastern portion of Pierce
County. These are the two most populous counties in the State of Washington, comprising over 41% of the
state-wide population. The City is strategically located in relation to the labor and consumer markets of the
two largest cities in the area: Seattle in King County and Tacoma in Pierce County. Auburn currently serves
approximately 77,060 people within its incorporated limits.
The City provides a wide range of services, both beneficial and necessary, to its residents as well as to the
adjacent area. These services include police protection; parks and recreational facilities that include a senior
center, gymnasium, community and teen center, golf course and museum; land use management and
development regulation; infrastructure construction and maintenance; water, sanitary sewage collection,
storm drainage, and solid waste services; a general aviation airport; and a municipal cemetery. The City is a
member/owner of Valley Communications providing emergency 911 services and South Correctional Entity
(SCORE) providing jail facilities. Both these organizations provide services to other owner/member
governments and other non-owner/member governments as well through interlocal agreements.
City of Auburn: 2016 CAFR Letter of Transmittal
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II. ECONOMIC CONDITION
A. Summary of Local Economy
Auburn began as a small rural community founded on agriculture and the railroad, which maintained a
significant switching and repair facility. The City has grown significantly since World War II, both as a
residential community and as a commercial and industrial location. Auburn has become a significant area for
automobile sales and has also developed a substantial manufacturing and distribution base with the largest
employer being The Boeing Co., which employs approximately 6,000 people at its Auburn facility. Boeing is
a worldwide supplier of aircraft and related products.
Auburn has enjoyed steady residential and industrial growth over the years as development has moved
outward from the major cities. Auburn is currently home to about 4,000 businesses and is the center of the
largest industrial complex in the Pacific Northwest. The City has a growing array of manufacturing facilities,
as well as distribution, wholesale, and retail operations. Auburn’s transit-oriented district is home to the
MultiCare Auburn Medical Center, with a Trauma Level III emergency facility. This location serves the local
geographic area, employs approximately 1,613 people, and is currently investing over 120 million dollars in
expansion and upgrades.
The City’s recent efforts to promote economic development and champion its designation as an Innovation
Partnership Zone helps to solidify Auburn’s economic standing in the region and spur new business and
development activity. A number of commercial and service industry projects, currently in progress or in the
planning stages, contribute to an economic picture of future growth.
Significant developments in the City include the issuance of 242 building permits for single family homes as
well as about $120 million in commercial construction, which includes projects such as the Promenade (298
unit mixed use development), The Reserve and Villas (597 unit mixed use development), The Estates at
Hillside Garden (126 unit senior housing project), Multicare Emergency Room upgrades, Boeing job training
center, 3 mini storage complexes, and several new commercial strip buildings and tenant improvements at
the Outlet Collection These projects have positive impacts on available revenue and, as they take hold, will
serve to strengthen the City’s economic future.
Since 2010 the City’s total assessed property valuation has risen from $6.9 billion in 2010 to $9.5 billion in 2016.
The recession, coupled with the impact of the Streamlined Sales Tax (SST) legislation enacted by the State of
Washington that went into effect July 1, 2008, has dropped general sales tax revenues from their high in 2007
of $17.5 million to $16.9 million in 2016. The SST impact is estimated to have eliminated approximately
$200,000 per month of sales tax revenue to the City. To lessen the financial impact on cities severely
impacted by this legislation, the State of Washington implemented a mitigation plan under which the City of
Auburn received approximately $1.93 million in mitigation payments in 2016.
While the City, similar to other municipalities in the region and nationally, has suffered during the economic
recession, the local economy is slowly improving. Sales Tax revenue, net of criminal justice and annexation
sales tax credits, constitutes approximately twenty three percent of the General Fund budget and increased
by $97,000 (+.6%) from 2015. Nonetheless, while the local economy has stabilized, the City remains vigilant in
its management of expenses to ensure it lives within its means.
Despite economic cycles, the City has continually focused on enhancing the quality of life in the community
and focusing on maintaining and redeveloping its aging infrastructure. For example, the City’s Arterial Street
program is partially funded by dedicating 1.0% of utility taxes toward arterial roadway improvements. In
City of Auburn: 2016 CAFR Letter of Transmittal
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addition, the City utilizes sales taxes collected from new construction for the local street program, commonly
referred to as the Save Our Streets (SOS) program.
The City’s budgeting process is based on financial policies directed at conserving fiscal resources while
supporting programmatic strategies. Budget recommendations reflect a long-range analysis of fiscal trends.
These policies and practices have not only averted serious funding problems in the past, but have enabled
the General Fund to remain on a firm financial footing during the most recent recession.
The City maintains a stable financial condition by managing expenditure budgets to available revenue
streams. All funds contain adequate balances, and the City’s debt is manageable. The General fund contains
a satisfactory balance, a significant Insurance fund has been set aside for contingencies, and the Equipment
Rental fund is adequate for vehicle replacement. The Proprietary and Fiduciary funds are in satisfactory
condition. The City completed a review of the City’s water, sewer and stormwater utility rates in 2012 and
established rates to fund operating and capital needs through 2017 which included the issuance of new
revenue bonds in 2013 to support significant new utility construction projects. An interim review of utility
rates, in conjunction with the comprehensive planning process, is underway.
B.Future Economic Outlook
Auburn is in a continuous process of both short-term and long-term financial planning. Short-term financial
planning is inherent in the development of the City’s biennial budget. Concurrent with the biennial budget is
the review of the City’s long-term capital needs. Funding sources are assessed with the development of the
six-year Capital Facilities Plan. The capital facility plan is a component of the Comprehensive Master Plan,
which outlines how the City should look and function in twenty years and creates a vision that can be
realistically implemented. An integral part of this vision is determining how to allocate the City’s financial
resources to achieve the desired goals.
The City has several long-term municipal planning and capital projects underway. These include
reconstruction of aged utility infrastructure; street improvements including rehabilitation of local
neighborhood streets. These projects will improve mobility, will contribute to the restoration of a
North/South arterial corridor, and provide for greater recreational opportunities for the community. These
municipal projects, coupled with the new private sector developments described earlier, will help ensure
local economic growth continues, albeit not at the rate experienced in the late 1990’s. The challenge is to
control costs that grow at a faster rate than revenue. Areas of concern are health care costs, pension costs,
other post-employment benefits (OPEB), and public safety costs related to incarceration and labor contracts.
Continuing to maintain service level in these sectors will draw valuable resources from other areas such as
infrastructure replacement and capital programs. As Auburn moves forward, economic conditions will be
continually monitored and adjustments to city spending and services made to maintain the City’s financial
health. Long-term plans will be focused on ensuring the City continues to be an economically strong and
viable city.
III. FINANCIAL INFORMATION
A.Cash Management
The City invests in U.S. Treasury and Agency Issues, Prime Bankers Acceptances, Time Deposits, and
Repurchase Agreements. Investment policies and procedures, established by the Mayor and adopted by the
City Council, require the City to establish a trustee to take delivery of all investment transactions at time of
payment. The City has contracted with the Bank of New York to provide delivery versus payment trustee
City of Auburn: 2016 CAFR Letter of Transmittal
7
services on all government agency investments. The State of Washington maintains an investment pool to
provide economies of scale in investing to smaller- and medium-sized cities in the State. The City uses this
service for all funds not invested in longer-term securities. The pool operates under the same legal
restrictions that apply to all municipalities in the State and, consequently, uses the same instruments as listed
above. The State also takes delivery of all investment transactions.
The City has adopted a comprehensive investment policy statement to guide City investment practices.
These policies are closely patterned after the recommendations in Investing Public Funds published by the
Government Finance Officers Association (GFOA). Investments are restricted to less than three years in order
to maintain liquidity on all investments in all funds, yet enable the City to take advantage of the yield curve.
Fiduciary funds, which involve long-term reserves and require minimal liquidity, are invested for longer time
periods. The City undertakes repurchase agreements only with financial institutions that offer the City full
protection in the event of default, by providing the delivery of the underlying security to the City.
B.Risk Management
The City participates in the Washington Cities’ Insurance Authority (an insurance pool of over 160 members)
and the City actively pursues risk reduction in the operation of its programs.
The Washington Cities’ Insurance Authority not only provides a sharing of risk by pooling of losses, it also
provides an extensive array of professional services in risk management. The pool monitors the City’s
management practices and damage claims. The City follows the guidelines provided by the pool in an effort
to minimize risk exposure in the day-to-day operations of the City’s programs. The City also maintains an
extensive employee safety program managed by the Human Resources department.
The City purchases, with employee participation, most of its health insurance for its employees through
commercial policies administered by Brown and Brown. Employees represented by the outside Teamsters
Union have insurance through the Teamsters organization and employees represented by the inside
Teamsters Union have insurance policies administered by the Association of Washington Cities. Beginning in
2014, the City created its own worker’s compensation program and pool. Prior, the City participated in the
Washington State Workers’ Compensation program.
In order to keep its long-term options open and to provide for any uninsured losses that might occur, the
City has elected to build an insurance reserve (the Insurance fund). The Insurance fund supplements
various insurance coverage’s maintained by the City. This fund is also used to self-insure some limited
exposures, the most significant of which is accidental loss to City-owned vehicles.
IV. OTHER RELEVANT INFORMATION
A.Independent Audit
State law requires an annual audit of all City books of accounts and financial records by the Office of the State
Auditor, which is headed by an independently elected State official, the State Auditor. The Auditor has broad
legal authority to inquire into all financial and legal compliance matters and such audits are considered equal
to audits by certified public accounting firms. The 2016 financial audit of the City is complete and was
conducted in conformance with Generally Accepted Auditing Standards. The financial statements of all City
funds have been included in this audit. The City has been given an unqualified opinion for 2016. Please see
the Auditor’s Report. The State Auditor’s Office also audits the City’s administration of its federal grants
under the single audit concept.
City of Auburn: 2016 CAFR Letter of Transmittal
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B.Awards
The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate
of Achievement for Excellence in Financial Reporting to the City of Auburn for its Comprehensive Annual
Financial Report for the fiscal year ended December 31, 2015. This was the twenty-eighth consecutive year
that the City has achieved this prestigious award. In order to be awarded a Certificate of Achievement, a
government must publish an easily readable and efficiently organized comprehensive annual financial report.
This report must satisfy both generally accepted accounting principles and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. We believe that our current Comprehensive
Annual Financial Report continues to meet the Certificate of Achievement Program’s requirements and we
are submitting it to the GFOA to determine its eligibility for another certificate.
In 2014, the City has also received the Government Finance Officers Association Distinguished Budget
Presentation award for its 2015-2016 biennial budget. The City was one of just twenty-one cities in the state
to receive both the Certificate of Achievement for Excellence in Financial Reporting and the Distinguished
Budget Presentation award for 2014. The City has submitted to GFOA its 2017-2018 biennial budget to
determine its eligibility for this award.
C.Acknowledgments
Preparation of this report could not have been accomplished without the professional, efficient, and
dedicated staff of the Finance department and various other City employees who assisted in its production.
Further appreciation is extended to the Mayor and City Council for their encouragement, interest, and
support in conducting the financial affairs of the City in a sound and progressive manner. The assistance of
the auditors from the Washington State Auditor’s Office is also greatly appreciated.
Respectfully submitted,
Shelley R. Coleman
Finance Director
9
Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Auburn
Washington
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
December 31, 2015
Executive Director/CEO
10
INDEPE NDENT AUDITOR’S REPO RT ON FINAN C I AL STATEMENTS
June 20, 2017
Mayor and City Council
City of Auburn
Auburn, Washington
REPORT ON THE FINANCIAL STATEMENTS
We have audited the accompanying financial statements of the governmental activities, the business -type
activities, each major fund and the aggregate remaining fund information of the City of Auburn, King
County, Washington, as of and for the year ended December 31, 2016, and the related notes to the
financial statements, which collectively comprise the City’s basic financial statements as listed in the
table of contents.
Management’s Responsibility for the F inancial Statements
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with accounting principles generally accepted in the United States of America; this includes
the design, implementation, and maintenance of internal control relevant to the preparation and fair
presentation of financial statements that are free from material misstatement, whether due to fraud or
error.
Auditor’s Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We conducted
our audit in accordance with auditing standards generally accepted in the United States of America and
the standards applicable to financial audits contained in Government Auditing Standards, issued by the
Comptroller General of the United States. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in
the financial statements. The procedures selected depend on the auditor’s judgment, including the
assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
In making those risk assessments, the auditor considers internal control relevant to the City’s preparation
and fair presentation of the financial statements in order to design audit procedures that are appropriate in
the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s
internal control. Accordingly, we express no such opinion. An audit also includes evaluating the
Office of the Washington State Auditor
Pat McCarthy
11
appropriateness of accounting policies used and the reasonableness of sign ificant accounting estimates
made by management, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our audit opinions.
Opinion
In our opinion, the financial statements referred to above present fairly, in all material respects, the
respective financial position of the governmental activities, the business -type activities, each major fund
and the aggregate remaining fund information of the City of Auburn, King County, Washington, as of
December 31, 2016, and the respective changes in financial position and, where applicable, cash flows
thereof, and the respective budgetary comparison for the General and Arterial Street funds for the year
then ended in accordance with accounting principles generally accepted in the United States of America.
Matters of Emphasis
As described in Note 1, during the year ended December 31, 2016, the City has implemented the
Governmental Accounting Standards Board Statement No. 72, Fair Value Measurement and Application,
Statement No. 73, Accounting and Financial Reporting for Pensions and Related Assets That Are Not
within the Scope of GASB Statement 68, and Amendments to Certain Provisions of GASB Statements 67
and 68 and Statement No. 77, Tax Abatement Disclosures. Our opinion is not modified with respect to
these matters.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s
discussion and analysis on pages 15 through 31, pension plan information on pages 101 through 104, and
information on postemployment benefits other than pensions on page 105 be presented to supplement the
basic financial statements. Such information, although not a part of the basic financial statements, is
required by the Governmental Accounting Standards Board who considers it to be an essential part of
financial reporting for placing the basic financial statements in an appr opriate operational, economic or
historical context. We have applied certain limited procedures to the required supplementary information
in accordance with auditing standards generally accepted in the United States of America, which
consisted of inquiries of management about the methods of preparing the information and comparing the
information for consistency with management’s responses to our inquiries, the basic financial statements,
and other knowledge we obtained during our audit of the basic financial statements. We do not express
an opinion or provide any assurance on the information because the limited procedures do not provide us
with sufficient evidence to express an opinion or provide any assurance.
Supplementary and Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the City’s basic financial statements. The accompanying information listed as combining and
individual fund financial statements and schedules on pages 108 through 150 is presented for purposes of
additional analysis and is not a required part of the basic financial statements. Such information is the
12
responsibility of management and was derived from and relates directly to the underlying accounting and
other records used to prepare the financial statements. This information has been subjected to auditing
procedures applied in the audit of the basic financial statements and certain additional procedures,
including comparing and reconciling such information directly to the underlying accounting and other
records used to prepare the financial statements or to the financial statements themselves, and other
additional procedures in accordance with auditing standards generally accepted in the Unit ed States of
America. In our opinion, the information is fairly stated, in all material respects, in relation to the basic
financial statements taken as a whole.
The information identified in the table of contents as the Introductory and Statistical Sections are
presented for purposes of additional analysis and is not a required part of the basic financial statements of
the City. Such information has not been subjected to the auditing procedures applied in the audit of the
basic financial statements and, accordingly, we do not express an opinion or provide any assurance on it.
OTHER REPORTING REQUIRED BY GOVERNMENT AUDITING STANDARDS
In accordance with Government Auditing Standards, we will also issue our report dated June 20, 2017, on
our consideration of the City’s internal control over financial reporting and on our tests of its compliance
with certain provisions of laws, regulations, contracts and grant agreements and other matters. That
report will be issued under separate cover in the City’s Single Audit Report. The purpose of that report is
to describe the scope of our testing of internal control over financial reporting and compliance and the
results of that testing, and not to provide an opinion on internal control over financial reporting or on
compliance. That report is an integral part of an audit performed in accordance with Government
Auditing Standards in considering the City’s internal control over financial reporting and compliance.
Sincerely,
Pat McCarthy
State Auditor
Olympia, WA
13
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City of Auburn: 2016 CAFR Management’s Discussion and Analysis
15
MANAGEMENT’S DISCUSSION AND ANALYSIS
The City of Auburn’s (the “City”) discussion and analysis is designed to:
• Assist the reader in focusing on significant financial issues
• Provide an overview of the City’s financial activity
• Identify changes in the City’s financial position (its ability to meet future years’ challenges)
• Identify any material deviations from the approved budget
• Identify individual fund issues or concerns
Management’s Discussion and Analysis is designed to focus on the current year’s activities, resulting changes and currently
known facts. Therefore, it should be read in conjunction with the Transmittal Letter and the City’s financial statements.
Financial Highlights
• Total government-wide net position – the difference between assets plus deferred outflows and liabilities plus
deferred inflows – equals $676.2 million, an increase of $29.3 million or 4.5%. Of this, a total of $562.6 million, or
83.2% of total net position, represents net investment in capital assets and includes assets such as utility systems,
streets, buildings, land, vehicles and equipment. An additional $4.4 million of net position is restricted for purposes
of endowment and debt service. Of the remaining $109.2 million of net position, $25.5 million is legally restricted,
restricted by City policy for specific purposes, or is restricted for use by the City’s utilities, and $83.7 million is
unrestricted.
• The net increase in government-wide net position during 2016 was $29.3 million. Of this amount, $13.9 million was
directly related to the increase in City-owned net investment in capital assets, restricted net position increased by
$5.6 million, and unrestricted net position increased by $ 9.8 million.
• Business-type net position increased by $14.1 million to $239.4 million during 2016 as a result of net capital investment
and net earnings related to the City’s water, sewer and storm water utilities.
• Governmental fund balances at year-end totaled $65.5 million. Of this amount, $25.0 million, or 38%, is unassigned
and available to fund ongoing activities. Compared to 2015, total governmental fund balances increased by $10.1
million. This increase reflects the net effect of a general improvement in the regional economy and continued
vigilance in monitoring general spending.
• Total City debt payments during the year, net of compensated absences and other post-employment benefits, were
$4.5 million. Total long-term liabilities, including bonds and loans, totaled $121.5 million at December 31, 2016. The
ending long-term liabilities is an increase of $1.0 million from 2015 and is largely attributable to the issuance of
refunding debt during the year. See note 9 for further information on long-term liability activity during the year.
City of Auburn: 2016 CAFR Management’s Discussion and Analysis
16
Other City Highlights:
Parks and Community Development
• Completed construction on the combined Community & Events and Youth/Teen Center. The center provides
approximately 21,000 square feet of building space for educational, cultural, and social activities.
• Replaced playgrounds at Dykstra Park and Isaac Evans Park.
• Applied for and received a $200,000 grant towards the renovation of the Old Post Office into a new Auburn Arts &
Culture Center.
• Implemented the acceptance of electronic benefits transfer (EBT) transactions at the Auburn International Farmers
Market.
• Completed extensive replacement of antiquated irrigation system at the Auburn Golf Course, including 20 new
irrigation satellites and a central computer to aid in water conservation and irrigation quality.
• Completed a total overhaul of the City’s 20-year Comprehensive Plan.
• Processed more than 3,400 permits and 900 business licenses, completed 6,700 building inspections, conducted
6,100 permit reviews, issued more than 4,000 decisions, and participated in more than 50,000 interactions with
customers.
• Developed a strategic business plan for the Auburn Municipal Airport.
Engineering Services
• Completed the implementation of the United States Environmental Protection Agency National Pollutant Discharge
Elimination System (NPDES) Phase II requirements related to Low Impact Development and adoption of Storm
Water Standards.
• Provided field technical assistance throughout the year to property owners on a variety of environmental issues and
best practices for protecting environmentally sensitive areas such as streams, wetlands, and floodplains.
• Completed construction of the Well 1 Improvements project.
• Completed Phase 2 of the Auburn Way South conveyance improvement, thereby reducing flooding conditions at
the Burlington Northern and Santa Fe railroad underpass.
• Completed the storm drainage system at the Maintenance & Operations facility to provide additional detention
storage and water quality enhancements. The improvements included Low Impact Development (LID) techniques
to reduce total runoff and expansion of the decant waste facility to reduce the overall disposal costs.
• Completed construction of the Mill Creek Wetland 5K project.
• Completed construction of the Lakeland Hills Reservoir 5 improvements project.
• Completed the installation of generators so that all sewer pump stations now have backup power.
• Completed construction of the Well 4 Power and Chlorination project.
• Completed construction of the Valley AC Main Replacement project.
• Completed design and construction of the Muckleshoot Indian Tribe Master Meters project.
• Completed the South T-Hangar Row 3 project at the Auburn Municipal Airport to retrofit existing airplane hangars
into enclosed hangars to increase cash flow and accommodate more aircraft.
• Completed the Airport Obstruction Survey/Advanced Ground Information System (AGIS) Survey.
City of Auburn: 2016 CAFR Management’s Discussion and Analysis
17
• Completed the Environmental Assessment/Categorical Exclusions report for runway enhancements at the Auburn
Municipal Airport.
Maintenance & Operations Services
• Refreshed all striping on public roads and continued to refresh thermoplastic pavement markings and legends as
needed (overseen by Engineering and completed through contracting with Pierce and King Counties).
• Completed ongoing citywide repairs or replacement of damaged and worn street signs identified through the use
of a Washington State Department of Transportation retroreflectometer.
• Engaged in regular preventative maintenance activities.
• Executed a system of cross training maintenance staff, enabling a more continuous use of equipment such as closed-
circuit television equipment and the jet/vactor truck.
• Completed rehabilitation work in 12 Storm Drainage ponds. This work returned the ponds to original design
specifications thereby enhancing the function and longevity of these facilities.
Overview of the Financial Statements
The City’s basic financial statements are presented in three parts:
1) Government-wide financial statements
2) Fund financial statements
3) Notes to the financial statements
These statements report the City’s net position and changes during the reporting year. The net position is the difference
between assets plus deferred outflows of resources and liabilities plus deferred inflows of resources.
Other supplementary information, in addition to the basic financial statements, is also contained in this report. This section
of the management’s discussion and analysis is intended to introduce and explain the basic financial statements.
Government-wide Financial Statements
The Financial Statements are presented in conformity with the Governmental Accounting Standards Board (GASB), which
establishes Generally Accepted Accounting Principles (GAAP) for governmental entities. The City adopted the provisions of
Statement No. 73 – Accounting and Financial Reporting for Pensions and Related Assets That Are Not Within the Scope of GASB
Statement 68, and Amendments to Certain Provisions of GASB Statements 67 and 68; GASB Statement No. 76 - The Hierarchy
of Generally Accepted Accounting Principles for State and Local Governments; and GASB Statement No. 77 – Tax Abatement
Disclosures. There is no material impact to the City of implementing these standards.
The government-wide financial statements are designed to be corporate-like in that all governmental and business-type
activities are consolidated into columns which add to a total for the City. The focus of the Statement of Net Position is
designed to be similar to bottom-line results for the City and its governmental and business-type activities. This statement
combines and consolidates governmental funds’ current financial resources (short-term spendable resources) with capital
assets, deferred outflows of resources, long-term obligations and deferred inflows of resources, (which there are none to
report). Over time, increases or decreases in net position may be one indicator of improvement or deterioration in the City’s
overall financial health.
The Statement of Activities is focused on both the gross and net cost of various functions, including both governmental and
business-type activities, which are supported by the City’s general tax and other revenues. This is intended to summarize
and simplify the user’s analysis of cost of various governmental services and/or subsidy to various business-type activities.
City of Auburn: 2016 CAFR Management’s Discussion and Analysis
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The revenue generated by the specific functions (charges for services, grants, and contributions) is compared to the
expenses for those functions to show how much each function either supports itself or relies on taxes and other general
funding sources for support. All activity on this statement is reported on the accrual basis of accounting, requiring that
revenues are reported when they are earned and expenses are reported when they are incurred, regardless of when cash is
received or disbursed.
Governmental activities of the City include general government (executive, finance, legal, human resources, and contracted
court), security (police), physical environment, economic environment, transportation, health and human services, and
culture and recreation. The City’s business-type activities include water, sanitary sewer, storm water and solid waste utilities
as well as the operations of an airport and cemetery. Governmental activities are primarily supported by taxes, charges for
services, and grants, while business-type activities are self-supporting through user fees and charges.
Fund Financial Statements
The Fund Financial Statements are the traditional reporting format for governments. A fund is a fiscal and accounting entity
with a self-balancing set of accounts used to account for specific activities or meet certain objectives. While the government-
wide statements present the City’s finances based on the type of activity (general government vs. business type), the Fund
Financial Statements are presented by fund type, such as the general fund, special revenue funds and proprietary funds, with
the focus on major funds.
Governmental Funds are used to account for essentially the same functions that are reported as governmental activities in
the government-wide financial statements. The government major fund is presented utilizing the “sources and uses of liquid
resources” basis. This is the manner in which the budget is typically developed. The basis of accounting is different between
the governmental fund statements and the government-wide financial statements. The governmental fund statements
focus on the near-term revenues/financial resources and expenditures while the government-wide financial statements
include both near-term and long-term revenues/financial resources and expenses. The information in the governmental fund
statements can be used to evaluate the City’s near-term financing requirements and immediate fiscal health. Comparing the
governmental fund statements with the government-wide statements can help the reader better understand the long-term
impact of the City’s current-year financing decisions.
Because the basis of accounting is different between the governmental fund statements and the government-wide financial
statements, reconciliations are provided. The reconciliation between the governmental fund Balance Sheets and the
government-wide Statement of Net Position is found directly following the governmental funds’ Balance Sheet; the
reconciliation between the governmental fund Statement of Revenues, Expenditures and Changes in Fund Balance and the
government-wide Statement of Activities is found directly following the governmental funds’ Statement of Revenues,
Expenses, and Changes in Fund Balances.
The City maintains twenty - one individual governmental funds. Of these, three are considered major (the general fund, the
arterial street fund, and the capital improvement projects fund) and are presented separately in the governmental fund
Balance Sheet and the governmental fund Statement of Revenues, Expenditures and Changes in Fund Balances. The
remaining governmental funds are combined into a single column labeled “Other Governmental Funds”. Individual fund
data for each of the other governmental funds can be found in the combining statements later in this report. The City
maintains budgetary control over its operating funds through the adoption of a biennial budget. Budgets are adopted at
the fund level according to state law. Budgetary comparison statements are presented for the general and arterial street
funds as part of the basic financial statements. Other budgetary comparison statements are included following the other
government funds’ combining statements.
City of Auburn: 2016 CAFR Management’s Discussion and Analysis
19
Proprietary funds are used by governments to account for their business-type activities and use the same basis of accounting
utilized in private industry. Business-type activities provide specific goods or services to a group of customers that are paid
for by fees charged to those customers. There is a direct relationship between the fees paid and the services rendered.
The City has two types of proprietary funds: enterprise funds and internal service funds. Enterprise funds are used to account
for goods and services provided to citizens, while internal service funds are used to account for goods and services provided
internally to various City departments.
Enterprise funds report the same functions presented as business-type activities in the government-wide statements, but in
greater detail. The City’s enterprise fund statements provide information on the City’s four utilities (water, sanitary sewer,
storm water, and solid waste) as well as the City-owned airport and cemetery.
Internal service funds are an essential accounting tool used to accumulate and allocate costs internally among the City’s
various functions. The City uses internal service funds to account for its fleet of vehicles, maintenance and operation of
facilities, computer hardware and software services, employee costs related to occupational injury or illness, and insurance
premiums. Internal service funds benefit both governmental and business-type activities, and are allocated accordingly in
the government-wide statement of activities.
Fiduciary funds account for assets held by the City in a trustee capacity or as an agent for individuals, private organizations,
other governments or other funds. Fiduciary funds are not included in the government-wide financial statements because
their assets are not available to support the City’s activities.
The City has one fiduciary fund: An agency fund, which is accounted for on the accrual basis. As agency funds are custodial
in nature, they do not include revenues and expenses.
Notes to the Financial Statements
The notes provide additional information that is essential to a full understanding of the data provided in the government-
wide and fund financial statements. The notes to the financial statements can be found at the end of the Basic Financial
Statements section.
Other Information
In addition to the basic financial statements and accompanying notes, this report also presents certain required
supplementary information concerning the budget vs. actual reports of the City’s general fund and major special revenue
funds. The budget vs. actual required supplementary information can be found on pages 44 and 45, and the pension benefit
and other postemployment benefit required supplementary information is found in the required supplemental information
section.
The combining statements referred to earlier in connection with nonmajor governmental funds, nonmajor enterprise funds,
and internal service funds are presented in the section titled “Fund Financial Statements and Schedules”.
Government-wide Financial Analysis
The statement of net position may serve as a useful indicator of the City’s financial position. The overall financial position
has improved for the City of Auburn over the prior year. Changes in Net Position from 2015 to 2016 show an increase in total
net position of $29.3 million or 4.5%. Following is a condensed version of the government-wide statement of net position
with a comparison to 2015:
City of Auburn: 2016 CAFR Management’s Discussion and Analysis
20
As of 12/31/16 As of 12/31/15 As of 12/31/16 As of 12/31/15 As of 12/31/16 As of 12/31/15
Current and other assets 121,141,782$ 114,267,041$ 57,286,223$ 52,851,281$ 178,428,005$ 167,118,322$
Capital assets, net of
accumulated depreciation 400,377,892 395,857,434 231,598,816 225,307,714 631,976,708 621,165,148
Total assets 521,519,674 510,124,475 288,885,039 278,158,995 810,404,713 788,283,470
Deferred Outflows of Resources 4,034,077 2,058,977 1,359,639 795,562 5,393,716 2,854,539
Long-term liabilities 78,915,572 77,339,930 42,564,080 43,119,532 121,479,652 120,459,462
Other liabilities 9,533,214 10,090,059 8,130,257 9,520,926 17,663,471 19,610,985
Total liabilities 88,448,786 87,429,989 50,694,337 52,640,458 139,143,123 140,070,447
Deferred Inflows of Resources 329,987 3,260,251 152,168 970,315 482,155
Net position
Net investment in capital assets 367,128,894 361,094,242 195,490,061 187,604,782 562,618,955 548,699,024
Restricted for:
Capital Projects 24,332,465 17,134,142 800 799 24,333,265 17,134,941
Nonexpendable Permanent Endowment 1,666,043 1,585,707 - - 1,666,043 1,585,707
Debt Service 11,945 13,278 2,694,103 4,349,763 2,706,048 4,363,041
Tourist Promotion 180,146 201,293 - - 180,146 201,293
Drug Investigation & Enforce 451,507 443,161 - - 451,507 443,161
Comm Dev Block Grant 44,904 44,904 - - 44,904 44,904
Central Business Distr Dev 58,260 48,395 - - 58,260 48,395
Rate Stabilization - - 415,511 413,778 415,511 413,778
Unrestricted 42,900,814 40,928,090 40,797,698 32,974,662 83,698,512 73,902,752
Total net position 436,774,978$ 421,493,212 239,398,173$ 225,343,784$ 676,173,151$ 646,836,996$
Governmental Activities Business-type Activities Total
STATEMENT OF NET POSITION
Comparative Analysis of 2016 and 2015
The largest component of the City’s net position, $562.6 million, or 83.2% is its net investment in capital assets. These
capital assets, such as streets, parks, trails, and vehicles and equipment related to police and public works, are used to
provide services to the citizens. As a result, these assets are not for sale, and are therefore not available to fund current
and future City obligations. The City elected the GASB 34 reporting option to include all general infrastructure of the City
acquired or substantially renovated since 1980.
The largest component of unrestricted net position, $40.8 million, represents the unrestricted net position of the City’s
business-type activities and may only be spent on activities related to one of the four City utilities (water, sanitary sewer,
storm water and solid waste) or to the City-owned ventures (airport and cemetery). Examples of utility activities include
maintenance of water/sewer mains, pump and lift stations, storm drain flushing, water meter reading, and garbage
collection. Activities related to the other City-owned ventures include maintenance of hangars and runways at the airport,
and grooming and landscaping at the cemetery. The second largest component of unrestricted net position, $40.5 million,
may be used for functions such as public safety employee salaries and supplies, parks and road maintenance, and other
general governmental services.
Restricted governmental fund net position is $26.7 million and is restricted for purposes such as capital project construction,
debt service, drug investigation and enforcement, and endowment. Total net investment in capital assets increased by $13.9
million.
Changes in Net Position
The change in net position represents the increase or decrease in City net position resulting from its various activities.
Following is a condensed version of the City’s changes in net position. The table shows the revenues, expenses and related
changes in net position for both governmental-type and business-type activities:
City of Auburn: 2016 CAFR Management’s Discussion and Analysis
21
2016 2015 2016 2015 2016 2015
Revenues:
Program revenues
Charges for services 12,338,041$ 11,109,069$ 65,733,943$ 63,391,139$ 78,071,984$ 74,500,208$
Operating grants and contributions 2,767,931 4,234,309 106,286 106,286 2,874,217 4,340,595
Capital grants and contributions 13,275,208 19,526,548 10,574,852 5,821,857 23,850,060 25,348,406
General revenues
Property taxes 18,102,286 17,271,705 - - 18,102,286 17,271,705
Sales taxes 21,475,335 21,125,730 - - 21,475,335 21,125,730
Interfund utility taxes 4,624,951 4,260,831 - - 4,624,951 4,260,831
Admission & utility taxes 8,917,401 8,838,179 - - 8,917,401 8,838,179
Excise taxes 5,057,013 4,999,517 - - 5,057,013 4,999,517
Other taxes 5,160,215 4,722,482 - - 5,160,215 4,722,482
Investment earnings 332,520 118,399 196,595 70,560 529,115 188,959
Miscellaneous revenue 157,874 194,600 1,085,275 1,881,835 1,243,149 2,076,434
Total revenues 92,208,775 96,401,369 77,696,951 71,271,677 169,905,726 167,673,046
Expenses:
General government 9,557,602 9,187,539 - - 9,557,602 9,187,539
Public safety 32,117,837 29,883,217 - - 32,117,837 29,883,217
Transportation 16,602,993 17,324,036 - - 16,602,993 17,324,036
Physical environment 3,266,375 2,924,046 - - 3,266,375 2,924,046
Culture and recreation 12,811,186 12,096,651 - - 12,811,186 12,096,651
Economic environment 3,224,984 3,044,354 - - 3,224,984 3,044,354
Health and human services 573,115 925,299 - - 573,115 925,299
Interest on long-term debt 1,709,647 1,986,853 - - 1,709,647 1,986,853
Water - - 13,107,629 13,691,529 13,107,629 13,691,529
Sanitary sewer - - 25,685,370 23,992,161 25,685,370 23,992,161
Storm drainage - - 8,814,542 8,308,559 8,814,542 8,308,559
Solid waste - - 13,460,155 12,907,832 13,460,155 12,907,832
Other business-type activities - - 2,150,693 2,062,695 2,150,693 2,062,695
Total expenses 79,863,739 77,371,995 63,218,389 60,962,776 143,082,128 138,334,771
Increase in net position before transfers 12,345,036 19,029,374 14,478,562 10,308,901 26,823,598 29,338,275
Transfers 424,173 (462,955) (424,173) 462,955 - -
Change in net position 12,769,209 18,566,419 14,054,389 10,771,856 26,823,598 29,338,275
Net Position, January 1, as Previously Reported 421,493,212 416,383,399 225,343,784 220,938,606 646,836,996 637,322,005
Change in Accounting Principle 2,512,557 (13,456,606) - (6,366,678) 2,512,557 (19,823,284)
Net Position, January 1, as Restated 424,005,769 402,926,793 225,343,784 214,571,928 649,349,553 619,979,305
Net position, December 31 436,774,978$ 421,493,212$ 239,398,173$ 225,343,784$ 676,173,151$ 646,836,996$
Governmental Activities Business-type Activities Total
CHANGES IN NET POSITION
Comparative Analysis of 2016 and 2015
Governmental activities contributed $12.8 million to the total increase in City net position. Revenues to fund capital assets
are recorded as program or general revenues in the statement of activities. However, asset purchases are not recorded as
expenses in the year purchased and construction costs are not recorded as expenses in the year incurred. Instead, the costs
are recorded as long-term assets and are depreciated over their useful lives.
City of Auburn: 2016 CAFR Management’s Discussion and Analysis
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General tax revenues increased by 3.3% to $63.3 million between 2015 and 2016, compared to an increase of 8.9% between
2014 and 2015:
• Property tax revenue increased $0.8 million or 4.8%.
• Sales tax collections increased $0.3 million or 1.7%, reflecting only modest improvement in the economy.
• Utility and admission tax revenue increased by $443,342 or 3.4%.
• Excise tax revenue increased by $0.1 million or 1.2%.
• Investment earnings increased by $0.2 million in governmental activities and $0.1 million in business-type activities
for a government-wide increase of $0.3 million. Government-wide miscellaneous revenue decreased by $0.8 million
to $1.2 million.
Government-wide expenses increased by approximately $2.5 million or 3.4% and were largely attributable to general
increases in operating expenses such as salaries and wages.
The chart below summarizes the government activity revenue by source, while the second chart reflects the specific
programs’ revenues and related expenses for the various activities of the City. Gaps between specific programs’ revenues
and their related expenditures are funded through general tax revenues.
Revenues by Source – Government Activities
Charges for Services
13%
Capital Grants &
Contributions
14%
Operating Grants &
Contributions
3%
Property Taxes
20%Sales Taxes
23%
Interfund Utility Taxes
5%
Utility & Admission Taxes
10%
Other Taxes
11%
Other Revenue
1%
City of Auburn: 2016 CAFR Management’s Discussion and Analysis
23
Program Expenses and Revenues – Governmental Activities
Business-type net position totaled $239.4 million, an increase of 6.2%. Key components of this increase include:
• Business-type revenues increased $6.4 million to $77.7 million due to increases in charges for services, capital grants,
and investment earnings, which were partially offset by a decrease in miscellaneous revenue.
• Income (loss) before capital contributions and transfers amounted to:
Water fund: $ 2,190,981
Sanitary sewer fund: 398,354
Storm fund: 1,047,547
Solid waste fund: 767,376
Non-major funds: 2,027
$ 4,406,285
• Net transfers totaled ($424,173).
The following chart shows the relative net position balances for each business-type fund:
$0
$5
$10
$15
$20
$25
$30
MillionsProgram Revenues
Expenses
City of Auburn: 2016 CAFR Management’s Discussion and Analysis
24
Business Type Net Position – By Fund
The majority of net position in the City’s enterprise funds relate to capital asset infrastructure, such as water and sewer
mains and the airport runway. As such, most of the net position is not available to support the ongoing expenses of the
funds.
Following are two charts that contrast the total net position to the spendable portion of net position for each enterprise
fund:
Comparison of Total Net Position to Spendable Net Position
Utility Funds
Water
31.6%
Sanitary Sewer
35.3%
Storm Drainage
26.7%
Solid Waste
1.8%
Airport
4.0%
Cemetery
0.6%
$0
$10
$20
$30
$40
$50
$60
$70
$80
$90
W ater Sanitary Sewer Storm Drainage Solid WasteMillionsSpendable Net Position
Total Net Position
City of Auburn: 2016 CAFR Management’s Discussion and Analysis
25
Comparison of Total Net Position to Spendable Net Position
Other Enterprise Funds
The first chart following depicts the revenues and expenses for business-type funds, while the second shows the various
sources of business-type revenue.
Business Type Activity Revenues and Expenses
Before Capital Contributions and Transfers
$0
$1
$2
$3
$4
$5
$6
$7
$8
$9
$10
Airport CemeteryMillionsSpendable Net Position
Total Net Position
$0
$2
$3
$5
$6
$8
$9
$11
$12
$14
$15
$17
$18
$20
$21
$23
Water Sanitary Sewer St o r m
Drainage Solid Waste Minor
Business-Type
ActivitiesMillionsRevenues
Expenses
City of Auburn: 2016 CAFR Management’s Discussion and Analysis
26
Business Type Activity Revenues
By Source
Financial Analysis of Governmental Funds
The purpose of the City’s governmental funds is to report on near-term revenues/financial resources and expenditures. This
information helps determine the City’s financial requirements in the near future. Specifically, fund balance is a good indicator
of the City’s financial resources.
As of December 31, 2016, the City’s governmental funds had combined fund balances of $65.5 million, an increase of $10.1
million or 18.2% over the previous year. This change is primarily due to increases in fund balances for the General fund,
Mitigation fund, and other governmental funds net of a reduction in fund balance for the City’s capital improvement funds.
The following table shows the changes in fund balance between 2015 and 2016.
Changes in Fund Balance - By Fund
Fund 2016 2015 Difference
General fund 32,151,179$ 27,552,062$ 4,599,117$
Arterial street fund 2,655,913 2,405,821 250,092
Capital improvement fund 10,032,509 11,990,982 (1,958,473)
Mitigation fund 11,094,505 5,854,370 5,240,135
Cemetery endowment fund 1,743,809 1,686,280 57,529
All other government funds 7,866,489 5,947,328 1,919,161
Total 65,544,404$ 55,436,843$ 10,107,561$
Charges for Services
83.6%
Capital Contributions
13.6%
Investment Earnings
0.3%
Business-type
Miscellaneous Income
2.5%
City of Auburn: 2016 CAFR Management’s Discussion and Analysis
27
Of the government funds’ total fund balances, $25.0 million is unassigned. Nonspendable, restricted, committed and
assigned fund balances total $40.6 million. Of this $40.6 million, $11.4 million is earmarked for capital projects, $20.2 million
is in special revenue funds that are earmarked for specific purposes and $1.7 million is for endowment.
The general fund is the primary operating fund of the City. All receipts and payments of ordinary City operations are
processed through it unless they are required to be accounted for in another fund. At the end of 2016, the general fund had
a fund balance of $32.2 million, $7.2 million of which is assigned, and $25.0 million is unassigned.
Other funds that had significant fund balances include:
• $10.0 million in the capital improvement projects fund; used for various governmental capital asset projects.
• $11.1 million in the mitigation fund; used to collect fees from new development to mitigate the cost of new roads
and other infrastructure.
• $1.7 million in the cemetery endowed care fund; used for maintenance of the cemetery.
• $10.5 million in all other government funds; used primarily for local street improvements and local revitalization
funding.
The general fund balance of $32.2 million increased by $4.6 million from the prior year. Revenues increased with the
continued gradual improvement in the local and regional economic conditions. At the same time, expenses increased over
2015 due to inflation and programmatic changes. Meanwhile, the City continues its vigilance in monitoring general
expenditure activity.
The following chart shows the relative fund balances for governmental funds:
Governmental Funds – Fund Balances
General fund revenue increased by $3.0 million, sources of which are shown in the chart below. Property taxes increased by
$733,000 and sales taxes increased $369,000. Utility and admission taxes increased by a total of $347,000. Licenses and
General Fund
49%
Arterial Street
Fund
4%
Capital
Improvement
Fund
15%
Mitigation Fund
17%
Cemetery
Endowment Fund
3%
All Other
Government
Funds
12%
City of Auburn: 2016 CAFR Management’s Discussion and Analysis
28
Permits increased by $910,000 due primarily to significant increases in building permit fees (+66%) and plumbing permits
(+100%). Charges for Services decreased by $144,000, Fines & Forfeitures decreased by $33,000, Intergovernmental
Revenues increased by $387,000 and Miscellaneous Revenues increased by $402,000.
2016 General Fund Revenue Changes – By Source
Financial Analysis of Proprietary Funds
The City’s proprietary funds provide the same type of information as found in the government-wide financial statements,
but in greater detail. Factors affecting the finances of the City’s proprietary funds have already been addressed in the
discussion of the City’s business-type activities.
Property Taxes
$$733,412
Sales Taxes
$369,290 Interfund Utility Taxes
$312,103
Utility & Admission Taxes
$34,771
Licenses & Permits
$909,993
Charges for Services
($144,266)
Fines & Forfeitures
($32,854)
Intergovernmental
$386,833
Miscellaneous
$401,928
($200,000)
$0
$200,000
$400,000
$600,000
$800,000
$1,000,000
City of Auburn: 2016 CAFR Management’s Discussion and Analysis
29
General Fund Budgetary Highlights
The City budgets biennially by adopting two single-year budgets at the end of each even-numbered year and then making
adjustments as necessary via budget amendments throughout the next two years. Major amendments to the 2016 budget
included:
• Budgeted General Fund expenditures and transfers out increased from $62.8 million to $65.1 million. Significant
changes include increased costs for services provided by the King County District Court, costs for six new full time
equivalents (FTEs), as well as a $1.5 million transfer to cumulative reserves.
Reasons for the variances in the general fund between the final budget and actual results include:
• Actual General Fund revenues totaled $64.2 million and exceeded budget by $4.1 million. Significant areas of
variance include licenses and permits, which exceeded budget by $1.0 million primarily resulting from an increase in
the issuance of building permits; utility taxes, which exceeded budget by $726,000; other taxes ($979,000); and
charges for service ($705,000).
• Actual General Fund expenditures totaled $62.7 million and were under budget by $5.8 million. Departments
experienced savings due to continued vigilance in monitoring city-wide expenditures. Significant areas of under-
expenditure include reduced costs of medical benefits and employee pensions, reduced professional services
contracts, debt service costs, and other miscellaneous expenses.
Capital Asset and Debt Administration
Capital Assets
The City’s investment in capital assets for both its governmental and business-type activities as of December 31, 2016 totaled
$632.0 million (net of accumulated depreciation), an increase of $11 million from 2015. This investment in capital assets
includes land, buildings, improvements, machinery and equipment, construction in progress, utility transmission/distribution
systems, roads, bridges, and other infrastructure.
Major capital asset changes during the year include:
• Developer contributions resulted in an increase of $5.6 million in utility infrastructure assets and $3.3 million in
governmental infrastructure assets.
• $8.3 million was spent by proprietary funds on construction projects during the year.
• Purchases of government land resulted in an increase of $0.3 million.
• $15.7 million was spent by governmental funds on construction projects during the year. Some of the larger projects
in the governmental funds include:
$5.2 million on the Auburn Community & Youth/Teen Center
$2.6 million on W. Main St. Multimodal Corridor and ITS Improvements
$2.0 million on 2016 Local Street Pavement Restoration
$1.9 million on S 277th Auburn Way North to Green River Bridge
City of Auburn: 2016 CAFR Management’s Discussion and Analysis
30
A summary of the City’s capital assets follows:
More detailed information on capital assets is provided in Note 7.
Long-term Debt
At the end of the current fiscal year, the City had total net bonded debt outstanding of $81.5 million. Of this amount, $24.3
million is due to other governments, $30.7 million is general obligation bonds, and $30.0 million is revenue bonds for the
water, sewer and storm utilities. The City currently maintains a rating of Aa3 with Moody’s and a rating of AA+ with Standard
& Poor’s for its general obligation debt.
The following schedule summarizes the City’s bonded debt:
Below is a summary of additional, non-bonded long-term debt and liabilities of the City:
Washington State law limits the amount of general obligation debt a governmental entity may issue to 7.5% of its total
assessed value. Of the 7.5% limit, 2.5% is for general purposes, 2.5% is for open spaces/parks, and 2.5% is for utilities. Non-
voted (limited tax) general obligation indebtedness is limited to 1.5% of assessed valuation. The combination of unlimited
tax and limited tax general obligation debt for all purposes cannot exceed 7.5% of assessed valuation.
Additional information can be found in note 9 and in the statistical section of this report.
Summary of Capital Assets (net of depreciation)
As of 12/31/2016 As of 12/31/15 As of 12/31/2016 As of 12/31/15 As of 12/31/2016 As of 12/31/15
Land 108,793,702$ 108,289,765$ 12,526,187$ 12,526,187$ 121,319,889$ 120,815,952$
Building 55,101,628 48,343,093 2,106,829 1,920,573 57,208,457 50,263,666
Site improvements 7,813,341 8,184,800 203,881,093 188,501,387 211,694,434 196,686,187
Equipment 8,436,499 7,273,562 265,028 296,076 8,701,527 7,569,638
Intangibles 192,530 347,093 5,196,600 5,196,600 5,389,130 5,543,693
Infrastructure 209,040,706 213,829,979 - - 209,040,706 213,829,979
Construction in progress 10,999,486 9,589,142 7,623,079 16,866,891 18,622,565 26,456,033
400,377,892$ 395,857,434$ 231,598,816$ 225,307,714$ 631,976,708$ 621,165,148$
Governmental Activities Business-type Activities Total
Summary of Bonded Debt
Governmental
Activities
Business-type
Activities Total
General obligation bonds 28,785,460$ 533,845$ 29,319,305$
Revenue bonds - 28,545,000 28,545,000
Due to other governments 23,612,700$ - 23,612,700
52,398,160$ 29,078,845$ 81,477,005$
Other Long-Term Debt and Liabilities
Public Works Trust Fund loans 11,412,188$
Capital Lease 476,635$
Employee leave benefits 2,879,166
Other Post Employment Benefits 8,447,831
Pension Liability 22,652,229
45,868,049$
City of Auburn: 2016 CAFR Management’s Discussion and Analysis
31
Economic Factors
Over the past year, economic conditions continued to improve locally. Real property values finally recovered to pre-
recession levels in 2016 and property tax receipts grew by 4.3%. Retail sales continued to increase albeit by a very modest
1.5%, and the rate of unemployment in the County and City remained at pre-recession levels. Building permit revenues
increased by over 66% reflecting continued construction activity including several large commercial projects.
While general economic conditions in the region have improved, and the economic outlook for the City is generally positive,
short-term challenges to the City’s overall financial condition remain. The City is still recovering from the impacts of the
recession, and several areas at the Federal and State levels of government continue to cast a shadow. These negative factors
include the ongoing disagreements within the United States Congress on finding a long-term solution to fund governmental
services as well as, at the State level, long-term fiscal challenges for addressing holes left by one-time budget fixes in the
current budget and the need to fund basic education mandates. Additionally, the State and City continue to grapple with
the financial impacts of the streamlined sales tax revenue distributions to cities at reduced levels.
Therefore, although the City has seen significant private investments in the community, including development within
several blocks in downtown that will serve as a catalyst for future redevelopment, the City remains cautious and continues
to vigilantly monitor and control its expenses in order to live within the City’s means.
Requests for Information
This financial report is designed to provide a general overview of the City of Auburn’s finances for readers with an interest in
the City’s finances. Questions concerning this report, or requests for additional information, may be addressed to the
Finance Director, City of Auburn, 25 West Main Street, Auburn WA 98001-4998.
City of Auburn: 2016 CAFR Management’s Discussion and Analysis
32
City of Auburn: 2016 CAFR Basic Financial Statements
33
GOVERNMENT-WIDE FINANCIAL STATEMENTS
The City presents two government-wide financial statements.
The Statement of Net Position
This statement provides information all on city assets and liabilities, with the difference between the
two reported as net position.
The Statement of Activities
This statement is focused on both the gross and net cost of various functions, including both
governmental and business-type activities, which are supported by the City’s general tax and other
revenues.
City of Auburn: 2016 CAFR Basic Financial Statements
34
City of Auburn: 2016 CAFR Basic Financial Statements
35
Governmental Business-Type
Activities Activities Total
ASSETS:
Cash and Cash Equivalents (Note 3)56,436,240$ 42,987,298$ 99,423,538$
Cash with Outside Agencies 230,699 - 230,699
Investments (Note 3)1,233,651 - 1,233,651
Receivables
Taxes 317,941 - 317,941
Customer Accounts 70,216 6,567,964 6,638,180
Other Receivables 2,287,200 - 2,287,200
Special Assessments 11,397 - 11,397
Due From Other Governmental Units (Note 6)2,576,081 545,782 3,121,863
Internal Balances 223,330 (223,330) -
Materials and Supplies Inventory 225,116 163,607 388,723
Restricted Assets:
Temporarily Restricted:
Cash and Cash Equivalents (Note 3)17,385,011 6,576,502 23,961,513
Due From Other Governmental Units (Note 6)2,986,432 - 2,986,432
Permanently Restricted:
Cash and Cash Equivalents (Note 3)1,666,043 - 1,666,043
Prepaids 656,128 - 656,128
Long-Term Contracts and Notes 19,731 668,400 688,131
Net Pension Asset (Note 10)3,583,705 - 3,583,705
Investment in Joint Ventures (Note 15)31,232,861 - 31,232,861
Depreciable Capital Assets (Net of Accumulated Depreciation) (Note 7)280,584,704 206,252,950 486,837,654
Non-Depreciable Capital Assets (Note 7)119,793,188 25,345,866 145,139,054
Total Assets 521,519,674 288,885,039 810,404,713
DEFERRED OUTFLOWS OF RESOURCES:
Deferred Outflows from Bond Refunding 11,173 32,755 43,928
Deferred Outflows related to Pensions 4,022,904 1,326,884 5,349,788
Total Deferred Outflow of Resources 4,034,077 1,359,639 5,393,716
LIABILITIES:
Accounts Payable 4,730,409 3,264,049 7,994,458
Other Liabilities Payable 695,932 7,792 703,724
Payable From Restricted Assets:
Accrued Interest - 1,569,702 1,569,702
Deposits - 196,514 196,514
Unearned Revenue 19,732 - 19,732
Bonds and Other Debt Payable:
Due Within One Year (Note 9)3,392,741 3,092,200 6,484,941
Due in More Than One Year (Note 9)32,100,361 35,360,931 67,461,292
Due to Other Governmental Units:
Due Within One Year (Note 9)694,400 - 694,400
Due in More Than One Year (Note 9)22,918,300 - 22,918,300
Net Penion Liability 15,449,080 7,203,149 22,652,229
Net OPEB Obligation (Note 11)8,447,831 - 8,447,831
Total Liabilities 88,448,786 50,694,337 139,143,123
DEFERRED INFLOWS OF RESOURCES:
Deferred Inflows related to Pensions 329,987 152,168 482,155
Total Deferred Inflows of Resources 329,987 152,168 482,155
NET POSITION
Net Investment in Capital Assets 367,128,894 195,490,061 562,618,955
Restricted:
Capital Projects 24,332,465 800 24,333,265
Nonexpendable Permanent Endowment 1,666,043 - 1,666,043
Debt Service 11,945 2,694,103 2,706,048
Tourist Promotion 180,146 - 180,146
Drug Investigation and Enforcement 451,507 - 451,507
Community Development Block Grant Program 44,904 - 44,904
Central Business District Development 58,260 - 58,260
Rate Stabilization - 415,511 415,511
Unrestricted 42,900,814 40,797,698 83,698,512
Total Net Position 436,774,978$ 239,398,173$ 676,173,151$
The notes to the basic financial statements are an integral part of this statement.
Primary Government
City of Auburn, WashingtonSTATEMENT OF NET POSITION
December 31, 2016
City of Auburn: 2016 CAFR Basic Financial Statements
36
Charges Operating Capital
for Services Grants and Grants and
Expenses and Fines Contributions Contributions
FUNCTIONS / PROGRAMS:
Primary Government
Governmental Activities:
General Government 9,557,602$ 939,184$ 185,681$ 372,791$
Public Safety 32,117,837 1,468,536 1,664,179 8,392
Transportation 16,602,993 3,265,147 798 7,940,106
Physical Environment 3,266,375 260,555 22,438 176,089
Culture and Recreation 12,811,186 2,508,166 888,335 4,342,954
Economic Environment 3,224,984 3,896,453 2,500 24,994
Health and Human Resources 573,115 - 4,000 409,882
Interest on Long-Term Debt 1,709,647 - - -
79,863,739 12,338,041 2,767,931 13,275,208
Business-Type Activities
Water 13,107,629 14,603,413 - 3,299,828
Sanitary Sewer 25,685,370 25,226,724 - 3,724,022
Storm Drainage 8,814,542 9,539,564 - 3,551,002
Solid Waste 13,460,155 14,227,531 106,286 -
Nonmajor Business-Type Activities 2,150,693 2,136,711 - -
63,218,389 65,733,943 106,286 10,574,852
Total Primary Government 143,082,128$ 78,071,984$ 2,874,217$ 23,850,060$
General Revenues:
Taxes:
Property
Retail Sales and Use
Interfund Utility
Utility
Excise
Other
Investment Earnings
Other Revenues
Gain on Sale of Capital Assets
Contributions to Endowment Funds
Transfers (Note 5)
Total General Revenues
Change in Net Position
Net Position, January 1
Change In Accounting Principle
Net Position, January 1 restated
Net Position, December 31
The notes to the basic financial statements are an integral part of this statement.
Program Revenues
City of Auburn, Washington
STATEMENT OF ACTIVITIES
For the Year Ended December 31, 2016
Page 1 of 2
City of Auburn: 2016 CAFR Basic Financial Statements
37
Governmental Business-Type
Activities Activity Total
(8,059,946)$ -$ (8,059,946)$
(28,976,730) - (28,976,730)
(5,396,942) - (5,396,942)
(2,807,293) - (2,807,293)
(5,071,731) - (5,071,731)
698,963 - 698,963
(159,233) - (159,233)
(1,709,647) - (1,709,647)
(51,482,559) - (51,482,559)
- 4,795,612 4,795,612
- 3,265,376 3,265,376
- 4,276,024 4,276,024
- 873,662 873,662
- (13,982) (13,982)
- 13,196,692 13,196,692
(51,482,559)$ 13,196,692$ (38,285,867)$
18,102,286$ -$ 18,102,286$
21,475,335 - 21,475,335
4,624,951 - 4,624,951
8,917,401 - 8,917,401
5,057,013 - 5,057,013
5,160,215 - 5,160,215
332,520 196,595 529,115
83,737 1,075,775 1,159,512
23,800 9,500 33,300
50,337 - 50,337
424,173 (424,173) -
64,251,768 857,697 65,109,465
12,769,209 14,054,389 26,823,598
421,493,212 225,343,784 646,836,996
2,512,557 - 2,512,557
424,005,769 225,343,784 649,349,553
436,774,978$ 239,398,173$ 676,173,151$
Changes in Net Position
Net (Expense) Revenue and
Page 2 of 2
City of Auburn: 2016 CAFR Basic Financial Statements
38
City of Auburn: 2016 CAFR Basic Financial Statements
39
MAJOR GOVERNMENTAL FUNDS
General Fund
The general fund accounts for all of the City's financial resources except those required by statute or
generally accepted accounting principles to be accounted for in another fund. As is the case with most
municipalities, the general fund is the largest and most important accounting entity of the City. As
noted in the statements that follow, the general fund receives the bulk of its revenues from local taxes,
followed by State shared revenues, service charges, and other income.
The general fund is accounted for on a modified accrual basis. Biennial budgets are adopted
with appropriations lapsing at the end of each year of the biennium.
Arterial Street Fund
This fund is supported by the State of Washington’s motor vehicle fuel tax and by various grants
and is used for major street construction.
Capital Improvement Projects Fund
This fund accounts for major capital acquisitions, and streets and parks construction projects.
City of Auburn: 2016 CAFR Basic Financial Statements
40
Other Total
General Arterial Capital Governmental Governmental
Fund Street Improvement Funds Funds
ASSETS:
Cash and Cash Equivalents 29,608,239$ 966,786$ 9,884,188$ 21,151,697$ 61,610,910$
Investments (Note 3)1,233,651 - - - 1,233,651
Deposits with Fiscal Agent 230,699 - - - 230,699
Receivables:-
Taxes 317,941 - - - 317,941
Customer Accounts 59,405 6,540 - - 65,945
Other Receivables 1,924,570 - - 349,669 2,274,239
Special Assessments - - - 11,397 11,397
Interfund Receivable (Note 5)450,000 - 133,682 - 583,682
Long-Term Notes and Contracts - - 19,731 - 19,731
Due From Other Governmental Units (Note 6)2,570,039 2,632,314 125,893 228,225 5,556,471
Total Assets 36,394,544 3,605,640 10,163,494 21,740,988 71,904,666
LIABILITIES, DEFERRED INFLOWS AND FUND BALANCES:
Liabilities:
Current Payables 2,574,662 949,727 111,253 513,249 4,148,891
Customer Deposits 347,228 - - - 347,228
Interfund Payable (Note 5)- - - 450,000 450,000
Other Liabilities Payable 149,873 - - 61,539 211,412
Unearned Revenue - - 19,732 - 19,732
Total Liabilities 3,071,763 949,727 130,985 1,024,788 5,177,263
Deferred Inflow of Resources:
Unavailable Revenue-Special Assessments - - - 11,397 11,397
Unavailable Revenue-Other 1,171,602 - - - 1,171,602
Total Deferred Inflow of Resources 1,171,602 - - 11,397 1,182,999
Fund Balances: (Note 1)
Nonspendable Permanent Endowment - - - 1,666,043 1,666,043
Restricted - 2,655,913 9,492,805 12,930,509 25,079,227
Committed - - - 5,421,640 5,421,640
Assigned 7,160,098 - 539,704 686,611 8,386,413
Unassigned 24,991,081 - - - 24,991,081
Total Fund Balances:32,151,179 2,655,913 10,032,509 20,704,803 65,544,404
Total Liabilities, Deferred Inflows and Fund Balances 36,394,544$ 3,605,640$ 10,163,494$ 21,740,988$ 71,904,666$
The notes to the basic financial statements are an integral part of this statement.
City of Auburn, Washington
BALANCE SHEET
GOVERNMENTAL FUNDS
December 31, 2016
City of Auburn: 2016 CAFR Basic Financial Statements
41
Total governmental fund balances as reported on this statement 65,544,404$
Amounts reported for governmental activities in the statement of net position are different because:
Capital assets used in governmental activities are not financial resources and therefore 392,234,007
not reported in the governmental funds.
Other non-current assets used in governmental activities are not financial resources and therefore are
not reported in the governmental funds.
Investment in Joint Ventures 7,620,161
Prepaids 656,128
Interest receivable on investments 12,961
Net pension asset 3,583,705
11,872,955
Other long-term assets are not available to pay for current-period expenditures and therefore
are reported as unavailable revenue in the governmental funds.
Unearned revenue beyond the city's 30-day measurable and available period 1,171,602
Unavailabe revenue reported for special assessments 11,397
1,182,999
Internal service funds are used by management to charge the cost of certain activities, such as insurance, fleet
maintenance and information technology, to individual funds. The assets and liabilities of these internal service 19,281,948
funds are included in governmental activities in the statement of net position.
Some liabilities are not due and payable in the current period and therefore are not reported
in the governmental funds.
Bonds and loans payable (33,005,032)
Premium on Bonds Payable (108,655)
Deferred amount on bond refunding 11,173
Deferred amounts related to pensions 3,242,585
Interest payable (136,992)
Net pension liability (12,924,889)
Net other postemployment obligations (8,447,831)
Compensated absences payable (1,971,694)
(53,341,335)
Net position of government activities as reported on the statement of net position 436,774,978$
The notes to the basic financial statements are an integral part of this statement.
RECONCILIATION OF BALANCE SHEET OF GOVERNMENT FUNDS TO THE STATEMENT OF NET POSITION
December 31, 2016
City of Auburn, Washington
City of Auburn: 2016 CAFR Basic Financial Statements
42
Other Total
General Arterial Capital Governmental Governmental
Fund Street Improvement Funds Funds
REVENUES:
Taxes:
Property 17,932,830$ -$ -$ 134,494$ 18,067,324$
Retail Sales & Use 18,942,462 - - 2,532,873 21,475,335
Interfund Utility 3,964,244 - - 660,707 4,624,951
Utility 7,483,026 - - 1,434,375 8,917,401
Excise 681,903 - 4,262,234 112,876 5,057,013
Other 76,569 - - 61,391 137,960
Licenses and Permits 2,984,425 20,700 - - 3,005,125
Intergovernmental 5,849,991 4,503,358 - 2,360,661 12,714,010
Charges for Services 4,183,410 44,162 - 7,336,106 11,563,678
Fines and Forfeitures 905,921 - - - 905,921
Special Assessments - - - 4,111 4,111
Investment Earnings 150,962 6,484 46,191 75,421 279,058
Miscellaneous 1,000,142 516,924 5,961 331,423 1,854,450
Total Revenues 64,155,885 5,091,628 4,314,386 15,044,438 88,606,337
EXPENDITURES:
Current:
General Government 8,936,366 - - - 8,936,366
Security of Persons and Property 30,221,067 - - 588,002 30,809,069
Physical Environment 3,309,993 - - - 3,309,993
Transportation 3,249,497 6,390,683 - 2,967,436 12,607,616
Economic Environment 2,704,975 - - 619,334 3,324,309
Health and Human Services 573,115 - - - 573,115
Culture and Recreation 11,281,072 - - 199,416 11,480,488
Debt Service:
Principal 84,089 197,376 - 1,456,104 1,737,569
Interest and Other Costs 27,557 12,829 - 1,592,400 1,632,786
Capital Outlay 9,581 - 840,441 5,934,321 6,784,343
Total Expenditures 60,397,312 6,600,888 840,441 13,357,013 81,195,654
Excess (Deficiency) of Revenues
Over (Under) Expenditures 3,758,573 (1,509,260) 3,473,945 1,687,425 7,410,683
OTHER FINANCING SOURCES (USES):
Insurance Recoveries 83,737 - - - 83,737
Issuance of Debt - - - 3,128,732 3,128,732
Issuance of Refunding Bond 38,198 - - - 38,198
Payment to Escrow Agent - Refunded Bond - - - (3,005,000) (3,005,000)
Transfers In (Note 5)1,715,177 1,759,352 398,920 7,247,816 11,121,265
Transfers Out (Note 5)(3,509,125) - (5,831,338) (1,842,148) (11,182,611)
Total Other Financing Sources and Uses (1,672,013) 1,759,352 (5,432,418) 5,529,400 184,321
Net Change in Fund Balances 2,086,560 250,092 (1,958,473) 7,216,825 7,595,004
Fund Balances - January 1, as Previously Reported 27,552,062 2,405,821 11,990,982 13,487,978 55,436,843
Change in Accounting Principle 2,512,557 - - - 2,512,557
Fund Balance - January 1, restated 30,064,619 2,405,821 11,990,982 13,487,978 57,949,400
Fund Balances - Ending 32,151,179$ 2,655,913$ 10,032,509$ 20,704,803$ 65,544,404$
The notes to the basic financial statements are an integral part of this statement.
City of Auburn, Washington
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
GOVERNMENTAL FUNDS
For the Year Ended December 31, 2016
City of Auburn: 2016 CAFR Basic Financial Statements
43
Net change in fund balances per the Statement of Revenues, Expenditures and Changes in Fund Balance 7,595,004$
Amount reported as change in net position in the Statement of Activities are different because:
Governmental funds report capital outlays as expenditures. However, in the statement
of activities the cost of those assets is allocated over their estimated useful lives and
reported as depreciation expense. This is the amount by which capital outlay ($14,982,139)
exceeded depreciation ($15,141,188) in the current period.(67,539)
Certain Capital and Joint Venture activities do not use or provide current financial resources
but increase net position.435,156
Governmental funds report sales of assets as other financing sources while the Statement of Activities
reports only the gain or loss on sale of capital assets.(1,686)
Debt proceeds are reported as financing sources in governmental fund and thus contribute to the
change in fund balances. In the government-wide statements, however, issuing debt increases
long-term liabilities in the statement of net position and does not affect the statement of activities.
Issuance of new debt (3,166,930)
Revenues in the Statement of Activities that do not provide current financial resources
are not reported as revenues in the funds:
Property taxes 34,962
Special assessments (4,502)
Other unavailable revenue 32,563
Amortization of bond premium 29,141
Investment interest receivable 12,178
104,342
Developer contributions and annexation of infrastructure assets are reported as revenue in the statement
of activities, but do not provide current financial resources and are not reported as fund revenue.3,300,835
Repayment of the principal of long-term debt consumes the current financial resources of
governmental funds but has no effect on the net position. 4,612,876
Internal service funds are used by management to charge the costs of certain activities,
such as insurance and fleet maintenance, to individual funds. The net revenue (expense)
of certain internal service funds is reported with governmental activities.861,876
Some expenses reported in the Statement of Activities do not require the use of current
financial resources and therefore are not reported as expenditures in governmental funds.
Amortization of debt issue costs 0
Amortization of prepaids (109,355)
Change in accrued interest payable 16,446
Change in net pension obligation or asset 494,685
Change in net other postemployment benefits (1,200,208)
Change in compensated absences payable (106,293)
(904,725)
Change in net position on the Statement of Activities 12,769,209$
The notes to the basic financial statements are an integral part of this statement.
City of Auburn, Washington
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN
FUND BALANCES OF GOVERNMENT FUNDS TO THE STATEMENT OF ACTIVITIES
For the Year Ended December 31, 2016
City of Auburn: 2016 CAFR Basic Financial Statements
44
Variance with
Final Final Budget
Original Adopted Actual Positive
(GAAP Basis)(GAAP Basis)Results (Negative)
REVENUES:
Taxes:
Property 17,133,500$ 17,733,500$ 17,932,830$ 199,330$
Retail Sales & Use 17,863,000 18,513,000 18,942,462 429,462
Interfund Utility 3,521,200 3,521,200 3,964,244 443,044
Utility 7,835,000 7,180,000 7,483,026 303,026
Excise 267,400 367,400 681,903 314,503
Licenses and Permits 1,844,600 1,944,600 2,984,425 1,039,825
Intergovernmental 5,253,580 5,635,293 5,849,991 214,698
Charges for Services 3,404,580 3,418,580 4,183,410 764,830
Fines and Forfeitures 1,408,180 808,180 905,921 97,741
Investment Earnings 35,200 35,200 109,971 74,771
Miscellaneous 687,000 775,000 1,000,142 225,142
Total Revenues 59,253,240 59,931,953 64,038,325 4,106,372
EXPENDITURES:
Current:
General Government 10,376,418 10,443,797 8,936,366 1,507,431
Security of Persons and Property 31,047,682 31,005,079 30,034,063 971,016
Physical Environment 3,101,668 3,249,169 3,309,993 (60,824)
Transportation 3,459,633 3,506,563 3,249,497 257,066
Economic Environment 2,751,802 3,336,664 2,704,975 631,689
Health and Human Services 618,982 864,130 573,115 291,015
Culture and Recreation 11,097,696 11,528,986 11,281,072 247,914
Debt Service 1,639,981 1,701,903 111,646 1,590,257
Capital Outlay 5,000 15,000 9,581 5,419
Total Expenditures 64,098,862 65,651,291 60,210,308 5,440,983
Excess (Deficiency) of Revenues
Over (Under) Expenditures (4,845,622) (5,719,338) 3,828,017 9,547,355
OTHER FINANCING SOURCES (USES):
Sales of Capital Assets - - - -
Issuance of Debt/Refunding Bond - 38,198 38,198
Insurance Recoveries 25,000 25,000 83,737 58,737
Transfers In (Note 5)76,000 220,926 215,177 (5,749)
Transfers Out (Note 5)(636,653) (2,826,622) (2,703,228) 123,394
Total Other Financing Sources and Uses (535,653) (2,580,696) (2,366,116) 214,580
Net Change in Fund Balances (5,381,275) (8,300,034) 1,461,901 9,761,935
Fund Balances - Beginning 10,547,126 19,566,765 19,566,765 -
Fund Balances - Ending 5,165,851$ 11,266,731$ 21,028,666$ 9,761,935$
RECONCILIATION OF PERSPECTIVE DIFFERENCE BETWEEN BUDGETARY INFORMATION AND
GENERALLY ACCEPTED ACCOUNTING PRINCIPLES (GAAP):
The Cumulative Reserve Fund is combined with
the General Fund for purposes of GASB Statement 54 8,709,937
The Fire, Relief & Pension Fund is combined with
the General Fund for purposes of GASB Statement 73 2,412,576
Fund Balance - Ending (GAAP)32,151,179$
The notes to the basic financial statements are an integral part of this statement.
Budget Amounts
For the Year Ended December 31, 2016
City of Auburn, Washington
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
GENERAL FUND
City of Auburn: 2016 CAFR Basic Financial Statements
45
Variance with
Final Final Budget
Original Adopted Actual Positive
(GAAP Basis)(GAAP Basis)Results (Negative)
REVENUES:
Taxes:
Licenses and Permits -$ -$ 20,700$ 20,700$
Intergovernmental 10,773,740 12,092,989 4,503,358 (7,589,631)
Charges for Services - 373,805 44,162 (329,643)
Investment Earnings 2,000 2,000 6,484 4,484
Miscellaneous - 1,601,145 516,924 (1,084,221)
Total Revenues 10,775,740 14,069,939 5,091,628 (8,978,311)
EXPENDITURES:
Current:
Transportation 12,104,450 18,587,776 6,390,683 12,197,093
Debt Service
Principal 196,006 197,406 197,376 30
Interest and Other Costs 20,256 20,456 12,829 7,627
Total Expenditures 12,320,712 18,805,638 6,600,888 12,204,750
Excess (Deficiency) of Revenues
Over (Under Expenditures (1,544,972) (4,735,699) (1,509,260) 3,226,439
OTHER FINANCING SOURCES (USES):
Transfers In (Note 5)1,313,047 3,882,586 1,759,352 (2,123,234)
Total Other Financing Sources and Uses 1,313,047 3,882,586 1,759,352 (2,123,234)
Net Change in Fund Balances (231,925) (853,113) 250,092 1,103,205
Fund Balances - Beginning 1,108,704 2,405,821 2,405,821 -
Fund Balances - Ending 876,779$ 1,552,708$ 2,655,913$ 1,103,205$
The notes to the basic financial statements are an integral part of this statement.
Budget Amounts
For the Year Ended December 31, 2016
City of Auburn, Washington
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
ARTERIAL STREET FUND
City of Auburn: 2016 CAFR Basic Financial Statements
46
City of Auburn: 2016 CAFR Basic Financial Statements
47
MAJOR PROPRIETARY FUNDS
ENTERPRISE FUNDS
The City's enterprise funds are used to account for operations that are financed and operated in a
manner similar to private business operations. The goods and services these funds provide to the
general public are primarily financed by service charges. Enterprise funds are self-supporting and use
the accrual method of accounting. Auburn has four major enterprise funds.
The Water Fund
This fund accounts for all maintenance, construction, and debt service requirements associated with
Auburn’s water system.
The Sanitary Sewer Fund
This fund accounts for maintenance, construction, and debt requirements for Auburn's sanitary sewer
system.
The Storm Drainage Fund
This fund accounts for the maintenance, construction and debt service requirements of Auburn's
storm drainage system.
The Solid Waste Fund
Garbage collection services for the City are accounted for in this fund, supported almost entirely by
garbage collection fees. Expenses include payment to the City's garbage contractor and other service
charges.
City of Auburn: 2016 CAFR Basic Financial Statements
48
Governmental
Activities
Non-Major Total
Sanitary Storm Solid Enterprise Enterprise Internal
Water Sewer Drainage Waste Funds Funds Service Funds
ASSETS:
Current Assets
Cash and Cash Equivalents 7,979,429$ 15,664,609$ 13,890,736$ 4,060,891$ 1,391,633$ 42,987,298$ 13,876,384$
Restricted Cash:
Bond Payments 1,690,766 537,099 803,804 - - 3,031,669 -
Customer Deposits 35,839 77,217 3,422 - 81,771 198,249 -
Other 1,630,313 516,973 1,199,298 - - 3,346,584 -
Customer Accounts 1,299,042 2,666,498 1,043,357 1,559,067 - 6,567,964 4,271
Due From Other Governmental Units 7,938 142 438,070 64,755 34,877 545,782 6,042
Inventories 140,514 8,081 7,017 - 7,995 163,607 225,116
Total Current Assets 12,783,841 19,470,619 17,385,704 5,684,713 1,516,276 56,841,153 14,111,813
Noncurrent Assets
Long-Term Contracts and Notes - 668,400 - - - 668,400 -
Capital Assets:
Land 897,971 1,695,023 5,937,014 - 3,996,179 12,526,187 -
Water Rights 5,196,600 - - - - 5,196,600 -
Buildings and Equipment 2,489,644 1,235,992 270,619 496,617 4,027,238 8,520,110 23,944,610
Improvements Other Than Buildings 126,770,391 99,896,594 74,456,728 - 10,807,991 311,931,704 117,158
Construction in Progress 5,126,098 609,870 1,654,461 - 232,650 7,623,079 34,727
Less: Accumulated Depreciation (51,269,236) (29,410,217) (24,439,464) (430,750) (8,649,197) (114,198,864) (15,952,610)
Total Capital Assets (Net of A/D)89,211,468 74,027,262 57,879,358 65,867 10,414,861 231,598,816 8,143,885
Total Noncurrent Assets 89,211,468 74,695,662 57,879,358 65,867 10,414,861 232,267,216 8,143,885
Total Assets 101,995,309 94,166,281 75,265,062 5,750,580 11,931,137 289,108,369 22,255,698
DEFERRED OUTFLOW OF RESOURCES:
Deferred Outflow from Bond Refunding - - - - 32,755 32,755 -
Deferred Outflow related to Pensions 456,353 292,364 435,060 68,699 74,408 1,326,884 478,070
456,353 292,364 435,060 68,699 107,163 1,359,639 478,070
LIABILITIES:
Current Liabilities:
Current Payables 600,343 466,789 808,287 1,272,860 115,770 3,264,049 581,518
Customer Deposits - - - - - - 300
Interfund Payables (Note 5)- - - - 133,682 133,682 -
Loans Payable - Current 624,107 288,262 - - - 912,369 -
Employee Leave Benefits - Current 173,486 100,198 173,342 28,909 22,873 498,808 201,640
Revenue Bonds Payable - Current 843,973 252,865 413,162 - - 1,510,000 -
General Obligation Bonds Payable - Current - - - - 171,023 171,023 -
Payable From Restricted Assets:
Accrued Interest 888,158 290,902 390,642 - - 1,569,702 -
Deposits 35,839 77,217 3,422 - 80,036 196,514 -
Other Liabilities Payable 7,792 - - - - 7,792 40,297
Total Current Liabilities 3,173,698 1,476,233 1,788,855 1,301,769 523,384 8,263,939 823,755
Noncurrent Liabilities
Employee Leave Benefits 51,276 29,615 51,233 8,544 6,761 147,429 59,597
Other LT Liabilities Payable - - - - - - 106,187
Loans Payable 4,231,728 2,378,669 - - - 6,610,397 -
Revenue Bonds Payable 15,816,071 4,475,354 7,948,858 - - 28,240,283 -
General Obligation Bonds Payable - - - - 362,822 362,822 -
Net Pension Liability 3,321,037 1,479,079 1,879,100 262,377 261,556 7,203,149 2,524,191
Total Noncurrent Liabilities 23,420,112 8,362,717 9,879,191 270,921 631,139 42,564,080 2,689,975
Total Liabilities 26,593,810 9,838,950 11,668,046 1,572,690 1,154,523 50,828,019 3,513,730
DEFERRED INFLOW OF RESOURCES:
Deferred Inflow related to Pensions 106,147 28,452 21,424 894 (4,749) 152,168 27,738
NET POSITION:
Net Investment in Capital Assets:69,386,354 66,632,112 49,524,711 65,868 9,881,016 195,490,061 7,997,401
Restricted for:
Debt Service 742,156 762,371 1,189,576 - - 2,694,103 -
Capital Projects - 800 - - - 800 -
Rate Stabilization - - 415,511 - - 415,511 -
Unrestricted 5,623,195 17,195,960 12,880,854 4,179,827 1,007,510 40,887,346 11,194,899
Total Net Position 75,751,705$ 84,591,243$ 64,010,652$ 4,245,695$ 10,888,526$ 239,487,821$ 19,192,300$
Adjustment to reflect the consolidation
of internal service funds related to
enterprise funds (89,648)
Net position of business-type activities 239,398,173$
The notes to the basic financial statements are an integral part of this statement.
City of Auburn, WashingtonSTATEMENT OF NET POSITIONPROPRIETARY FUNDS
December 31, 2016
Enterprise Funds
City of Auburn: 2016 CAFR Basic Financial Statements
49
Governmental
Activities
Non-Major Total
Sanitary Storm Solid Enterprise Enterprise Internal
Water Sewer Drainage Waste Funds Funds Service Funds
OPERATING REVENUES:
Charges of Services 14,603,413$ 25,226,724$ 9,539,564$ 14,227,531$ 1,355,708$ 64,952,940$ 12,901,680$
Other Operating Revenue - - - - 781,003 781,003 118,994
Total Operating Revenue 14,603,413 25,226,724 9,539,564 14,227,531 2,136,711 65,733,943 13,020,674
OPERATING EXPENSES:
Operations & Maintenance 4,708,531 18,158,177 2,256,044 11,723,868 803,929 37,650,549 10,621,865
Administration 2,876,688 2,293,851 3,435,582 694,542 810,173 10,110,836 929,779
Depreciation / Amortization 3,014,425 2,183,012 1,920,663 18,819 505,055 7,641,974 1,787,979
Other Operating Expenses 1,812,788 2,193,330 879,728 1,022,926 15,527 5,924,299 -
Total Operating Expenses 12,412,432 24,828,370 8,492,017 13,460,155 2,134,684 61,327,658 13,339,623
Operating Income (Loss)2,190,981 398,354 1,047,547 767,376 2,027 4,406,285 (318,949)
NON-OPERATING REVENUE (EXPENSE):`
Interest Revenue 44,045 66,285 64,851 15,404 6,010 196,595 57,737
Other Non-Operating Revenue 218,927 72,981 548,758 135,645 205,750 1,182,061 33,648
Gain on Sale of Capital Assets - - 9,500 - - 9,500 25,486
Interest Expense (687,081) (269,968) (322,525) - - (1,279,574) (5,033)
Other Non-Operating Expenses (8,116) (3,562) - - (16,009) (27,687) -
Total Non-Operating Revenue (Expense)(432,225) (134,264) 300,584 151,049 195,751 80,895 111,838
Income (Loss) Before Contributions & Transfers 1,758,756 264,090 1,348,131 918,425 197,778 4,487,180 (207,111)
Capital Contribution 3,299,828 3,724,022 3,551,002 - - 10,574,852 -
Transfers In (Note 5)- 3,000,000 2,000,000 - 150,000 5,150,000 4,271,623
Transfers Out (Note 5)(88,921) (3,107,430) (2,227,822) - (150,000) (5,574,173) (3,786,104)
Change in Net Position 4,969,663 3,880,682 4,671,311 918,425 197,778 14,637,859 278,408
Net Position, January 1 70,782,042 80,710,561 59,339,341 3,327,270 10,690,748 224,849,962 18,913,893
Net Position, December 31 75,751,705$ 84,591,243$ 64,010,652$ 4,245,695$ 10,888,526$ 239,487,821$ 19,192,301$
Change in net position from this statement 14,637,859
Adjustment to reflect the consolidation of internal service fund
activities related to enterprise funds (583,470)
Change in net position of business-type activities 14,054,389$
The notes to the basic financial statements are an integral part of this statement.
City of Auburn, Washington
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION
PROPRIETARY FUNDS
For the Year Ended December 31, 2016
Enterprise Funds
City of Auburn: 2016 CAFR Basic Financial Statements
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Page 1 of 2
Government
Non Major Activities
Sanitary Storm Solid Enterprise Internal
Water Sewer Drainage Waste Funds Total Service Funds
CASH FLOWS FROM OPERATING ACTIVITIES:
Cash Received from Users 14,561,073$ 25,161,820$ 9,527,863$ 14,187,673$ 2,146,433$ 65,584,862$ 13,092,879$
Cash Paid to Suppliers for Goods & Services (4,602,574) (19,392,192) (1,589,124) (11,751,299) (893,122) (38,228,311) (7,489,159)
Cash Paid for Taxes (1,812,788) (2,161,674) (879,728) (1,022,926) (15,528) (5,892,644) (2,696)
Cash Paid to Employees (3,659,987) (2,436,133) (3,689,531) (596,275) (737,730) (11,119,656) (4,297,760)
Other Cash Received 58,489 - - - - 58,489 (251)
Other Non-Operating Revenue - 2,488 160,180 - 205,750 368,418 -
Net Cash Provided (Used) by Operating Activities 4,544,213 1,174,309 3,529,660 817,173 705,803 10,771,158 1,303,013
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:
Interfund Loan Payable - - - - (49,713) (49,713) -
Operating Grant 151,003 71,802 104,701 122,573 - 450,079 1,109
Transfers In - 3,000,000 2,000,000 - 150,000 5,150,000 4,271,623
Transfers Out (88,921) (3,107,430) (2,227,822) - (150,000) (5,574,173) (3,786,104)
Net Cash Provided (Used) by Noncapital Financing Activities 62,082 (35,628) (123,121) 122,573 (49,713) (23,807) 486,628
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES:
Proceeds from Sale of Equipment - - 9,500 - - 9,500 56,201
Purchase of Capital Assets (5,281,807) (1,021,927) (1,841,520) - (218,354) (8,363,608) (3,107,541)
Contributed Capital 2,045,976 2,110,373 849,032 - - 5,005,381 -
Capital Grants - - - - 8,628 8,628 -
Proceeds from Other Governments - 22,500 - - - 22,500 -
Proceeds from Insurance Settlement 2,992 - 4,682 - - 7,674 32,539
Bond Issuance Costs - - - - 7,279 7,279 -
Principal Payment on Debt (1,459,886) (442,928) (423,302) - (166,439) (2,492,555) -
Interest Payment on Debt (759,623) (284,111) (364,786) - (16,009) (1,424,529) (5,033)
Debt Proceeds 827,830 - - - - 827,830 (5,033)
Net Cash Provided (Used) for Capital and Related Financing Activities (4,624,517) 383,907 (1,766,394) - (384,895) (6,391,899) (3,028,867)
CASH FLOW FROM INVESTING ACTIVITIES:
Interest Received 44,045 66,285 64,851 15,404 6,010 196,595 57,737
Net Cash Provided (Used) in Investing Activities 44,045 66,285 64,851 15,404 6,010 196,595 57,737
Net Increase (Decrease) in Cash and Cash Equivalents 25,823 1,588,873 1,704,996 955,150 277,205 4,552,047 (1,176,456)
Cash and Cash Equivalents - Beginning of Year 11,310,524 15,207,025 14,192,264 3,105,741 1,196,199 45,011,753 15,052,840
Cash and Cash Equivalents - End of Year 11,336,347$ 16,795,898$ 15,897,260$ 4,060,891$ 1,473,404$ 49,563,800$ 13,876,384$
CASH AT END OF YEAR CONSISTS OF:
Cash and Cash Equivalents 7,979,429 15,664,609 13,890,736 4,060,891 1,391,633 42,987,298 13,876,384
Restricted Cash - Bond Payments 1,690,766 537,099 803,804 - - 3,031,669 -
Restricted Cash - Customer Deposits 35,839 77,217 3,422 - 81,771 198,249 -
Restricted Cash - Other 1,630,313 516,973 1,199,298 - - 3,346,584 -
Total Cash 11,336,347$ 16,795,898$ 15,897,260$ 4,060,891$ 1,473,404$ 49,563,800$ 13,876,384$
The notes to the basic financial statements are an integral part of this statement.
City of Auburn, Washington
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
For the Fiscal Year Ended December 31, 2016
City of Auburn: 2016 CAFR Basic Financial Statements
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Page 2 of 2
Government
Non Major Activities
Sanitary Storm Solid Enterprise Internal
Water Sewer Drainage Waste Funds Total Service Funds
RECONCILIATION OF NET OPERATING INCOME TO NEW CASH
PROVIDED BY OPERATING ACTIVITIES
Operating Income (Loss)2,190,981$ 398,354$ 1,047,547$ 767,376$ 2,027$ 4,406,285$ (318,949)$
ADJUSTMENTS TO RECONCILE OPERATING INCOME TO
NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES:
Depreciation 3,014,425 2,183,012 1,920,663 18,819 505,055 7,641,974 1,787,979
Other Non-Operating Revenue 58,489 2,488 160,180 - 205,750 426,907
Asset (Increases) Decreases:
Accounts Receivable (49,878) (58,849) (11,701) (39,858) - (160,286) 71,954
Inventory 11,737 (570) 14 - (1,273) 9,908 8,180
Liability Increases (Decreases):
Accounts & Vouchers Payable (659,112) (1,335,265) 403,798 72,708 (19,315) (1,537,186) (295,927)
Deposits Payable 7,538 (6,055) - - 9,722 11,205 -
Wages & Benefits Payable (30,444) (8,987) (5,974) (3,108) (2,745) (51,258) (20,228)
Compensated Absences Payable 477 181 15,133 1,236 6,582 23,609 70,004
Total Adjustments 2,353,232 775,955 2,482,113 49,797 703,776 6,364,873 1,621,962
Net Cash Provided (Used) by Operating Activities 4,544,213$ 1,174,309$ 3,529,660$ 817,173$ 705,803$ 10,771,158$ 1,303,013$
SCHEDULE OF NONCASH INVESTING, CAPITAL AND
FINANCING ACTIVITIES
Capital Assets Acquired by Contributed Capital 1,253,852 1,613,649 2,701,970 - - 5,569,471 -
Total Non Cash Investing, Capital and Financing Activities 1,253,852$ 1,613,649$ 2,701,970$ -$ -$ 5,569,471$ -$
The notes to the basic financial statements are an integral part of this statement.
City of Auburn, Washington
STATEMENT OF CASH FLOWS
For the Fiscal Year Ended December 31, 2016
PROPRIETARY FUNDS
City of Auburn: 2016 CAFR Basic Financial Statements
52
City of Auburn: 2016 CAFR Basic Financial Statements
53
FIDUCIARY FUNDS
Fiduciary funds are used to account for assets held by the City of Auburn as a trustee or agent for
various individuals, private organizations, and other governmental units. The agency fund is custodial
in nature; therefore, no annual budget is adopted.
AGENCY FUNDS
The Agency Fund
This fund accounts for the funds over which the City is strictly a short-term custodian.
City of Auburn: 2016 CAFR Basic Financial Statements
54
Agency
Fund
ASSETS:
Cash and Cash Equivalents 241,445$
Receivables:
Customer Accounts 3,713
Total Assets 245,158
LIABILITIES:
Current Payables 187,591
Due to Other Governmental Units 57,567
Total Liabilities 245,158
NET POSITION
Held in Trust for Pension Benefits and Other Purposes -$
The notes to the financial statements are an integral part of this statement.
City of Auburn, Washington
STATEMENT OF FIDUCIARY NET POSITION
FIDUCIARY FUNDS
December 31, 2016
City of Auburn: 2016 CAFR Notes to the Financial Statements
55
City of Auburn
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2016
Note 1 – Summary of Significant Accounting Policies ........................................................................................................ 56
A. Reporting Entity ........................................................................................................................................... 56
B. Basic Financial Statements .......................................................................................................................... 57
C. Measurement Focus, Basis of Accounting, and Basis of Presentation ..................................................... 57
D. Budget and Budgetary Accounting ............................................................................................................. 60
E. Assets, Liabilities and Fund Balance ............................................................................................................ 61
1. Deposits and Investments .................................................................................................................... 61
2. Receivables ............................................................................................................................................ 62
3. Interfund Receivables and Payables .................................................................................................... 62
4. Amounts Due From Other Governmental Units .................................................................................. 62
5. Inventories and Prepaid Expenses ....................................................................................................... 62
6. Restricted Assets .................................................................................................................................. 62
7. Interfund Transactions ......................................................................................................................... 62
8. Capital Assets ........................................................................................................................................ 63
9. Pensions ................................................................................................................................................ 63
10. Deferred Outflows/Inflows of Resources ............................................................................................ 63
11. Compensated Absences ....................................................................................................................... 64
12. Unearned Revenues.............................................................................................................................. 64
13. Fund Balance Components – Proprietary Funds ................................................................................. 64
14. Fund Balance Components – Governmental Funds ............................................................................ 64
F. Revenues, Expenditures and Expenses ...................................................................................................... 66
G. Estimates ...................................................................................................................................................... 66
Note 2 – Stewardship, Compliance and Accountability ................................................................................................... 66
Note 3 – Deposits and Investments .................................................................................................................................. 66
Note 4 – Property Taxes .................................................................................................................................................... 70
Note 5 – Interfund Activity ................................................................................................................................................ 72
Note 6 – Due From Other Governmental Units ................................................................................................................ 74
Note 7 – Capital Assets and Depreciation ......................................................................................................................... 75
Note 8 – Capital Lease Obligation ..................................................................................................................................... 76
Note 9 – Long-Term Liabilities ........................................................................................................................................... 77
Note 10 – Pension Plans ...................................................................................................................................................... 81
Note 11 – Other Post-Employment Benefits ...................................................................................................................... 91
Note 12 – Association of Washington Cities Employment Benefit Trust .......................................................................... 92
Note 13 – Construction Commitments ............................................................................................................................... 94
Note 14 – Cemetery Endowed Care Fund ........................................................................................................................... 94
Note 15 – Joint Ventures / Related Party ............................................................................................................................ 94
Note 16 – Jointly Governed Organization / Related Party ................................................................................................. 98
Note 17 – Contingencies and Litigations ............................................................................................................................ 98
Note 18 – Risk Management and Insurance ....................................................................................................................... 98
Note 19 – Tax Abatements .................................................................................................................................................. 99
Note 20 – Change in Accounting Principle ........................................................................................................................ 100
City of Auburn: 2016 CAFR Notes to the Financial Statements
56
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The City of Auburn, King County, Washington, was incorporated in 1891. It operates under the laws of the State of
Washington applicable to a Non-Charter Code City under a Mayor/Council form of government. A full-time mayor and
seven part-time council members administer Auburn, all elected at-large to four-year terms. The City provides a range of
municipal services authorized by state law, including water services, sanitary sewer collection, solid waste collection, storm
drainage, a general aviation airport, a municipal cemetery and a municipal golf course.
The accounting and reporting policies of the City of Auburn, which conform to Generally Accepted Accounting Principles
(GAAP) for governments, are regulated by the Washington State Auditor’s Office.
The 2016 financial statements have been presented in accordance with the following new Governmental Accounting
Standards Board (GASB) Statements:
a. GASB Statement No. 72 – Fair Value Measurement and Application. This statement requires measurement of
certain assets and liabilities at fair value using a consistent and more detailed definition of fair value and accepted
valuation techniques. It enhances fair value application guidelines and related disclosures . There is no material
impact to the City in implementing this standard.
b. GASB Statement No. 73 – Accounting and Financial Reporting for Pensions and Related Assets That Are Not within
the Scope of GASB Statement 68, and Amendments to Certain Provisions of GASB Statements 67 and 68. The
objective of this statement is to improve the usefulness of information about pensions included in the general
purpose external financial reports of state and local governments for making decisions and assessing
accountability. There is no material impact to the City in implementing this standard.
c. GASB Statement No. 76 – The Hierarchy of Generally Accepted Accounting Principles for State and Local
Governments. This statement reduces the GAAP hierarchy to two categories of authoritative GAAP and addresses
the use of authoritative and non-authoritative literature in the event that the accounting treatment for a
transaction or other event is not specified within a source of authoritative GAAP. There is no material impact to
the City in implementing this standard.
d. GASB Statement No. 77 - Tax Abatement Disclosures. This statement requires disclosure of tax abatement
information about (1) a reporting government’s own tax abatement agreements and (2) those that are entered
into by other governments and that reduce the reporting government’s tax revenues. The City has disclosed tax
abatement information in these notes to the financial statements for its own tax abatement agreements. There
were no abatement agreements entered into by other governments that reduced the City’s tax revenues.
The City’s significant accounting policies are described in the following notes.
A. Reporting Entity
In accordance with the criteria set forth in Statement No. 14 of the Governmental Accounting Standards Board (GASB) the
City’s Comprehensive Annual Financial Report (CAFR) includes all funds controlled by the City.
Joint Ventures - Based on the criteria of Governmental Accounting Standards Board (GASB) Statement No. 14 as modified
by GASB Statements No. 34 and 61, the Valley Communications Center and South Correctional Entity Facility (SCORE) are
included in the accompanying government-wide statement of net position as a joint venture. (Refer to Notes 9 and 15).
Jointly Governed Organizations - The cities of Auburn, Algona and Pacific formed the Valley Regional Fire Authority (VRFA)
effective January 1, 2007. The VRFA is a separate municipal corporation of the State of Washington, organized as a regional
fire protection service authority under RCW 52.26. The VRFA is not financially accountable to the member cities, none of
the participating cities has an ongoing financial interest in the VRFA, and the VRFA is not financially dependent upon any
member city. The VRFA imposes its own property tax levy and fire benefit charge. As such, the VRFA is not included in the
City of Auburn’s financial reporting entity.
The government-wide financial statements consist of the government-wide statement of net position and the government-
wide statement of activities.
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B. Basic Financial Statements
The City’s basic financial statements consist of government-wide financial statements and fund financial statements. The
government-wide financial statements, which include the statement of net position and the statement of activities,
summarize the entire operation of the City. The governmental fund financial statements, which include the balance sheet,
statement of revenues, expenditures and changes in fund balance, and statements of revenues, expenditures and changes
in fund balance budget and actual, provide a more detailed level of reporting. The proprietary fund financial statements,
which include statement of net position, statement of revenues, expenses, and changes in net position and statement of
cash flows, provide a more detailed level of reporting.
The government-wide financial statements report information on all of the non-fiduciary activities of the City. For the most
part, the effect of interfund activity has been eliminated from these statements. Because governmental activities are
normally supported by taxes and intergovernmental revenue, while business-type activities are generally supported
through user fees and charges, governmental activities are reported separately from business-type activities on all
government-wide financial statements.
The Statement of Net Position reports the assets, deferred outflows of resources, and liabilities of the primary
government. The net position section of this statement represents the residual amount of assets and their associated
liabilities, and deferred outflow of resources. The net position section is divided into three categories. The first category is
Net Investment in Capital Assets, which includes all capital assets, net of accumulated depreciation, less the outstanding
balances of any borrowing (bonds, loans) used for acquisition, construction, or improvement of those assets. Capital
assets cannot readily be sold and converted into cash. The second category is Restricted Net Position, which includes those
assets, net of their related debt that have a constraint placed on their use. The constraints are either: 1) externally
imposed by creditors, such as through debt covenants, grantors, contributors, or laws and regulations of other
governments, or 2) imposed by law through constitutional provisions or enabling legislation. The final section is
Unrestricted Net Position, and this represents net position that generally can be used for any purpose. However, they are
not necessarily in a spendable form, such as cash.
The statement of activities demonstrates the degree to which the direct expenses of various functions and activities of the
City are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or
activity. The City’s policy is to allocate indirect costs to a specific function or segment. Program revenues include 1)
charges to customers or applicants who purchase, use, or directly benefit from goods, services or privileges provided by a
function or activity, and 2) grants and contributions that are restricted to meeting the operational or capital requirements
of a particular function or activity. Taxes and other items that are not properly included among function or activity
revenues are instead reported as general revenues.
Separate financial statements are included for government funds, proprietary funds, and fiduciary funds, even though
fiduciary funds are excluded from the government-wide financial statements. Major individual governmental funds and
major individual enterprise funds are reported in separate columns in the fund financial statements.
C. Measurement Focus, Basis of Accounting and Basis of Presentation
The accounts of the City are organized on the basis of funds, each of which is considered a separate accounting entity.
Each fund is accounted for with a separate set of self-balancing accounts that comprise its assets, liabilities, fund
balance/equity, revenue, and expenditures or expenses, as appropriate. The City resources are allocated to, and accounted
for in, individual funds according to the purpose for which they are spent and how they are controlled.
The basis of accounting refers to the timing of when revenues and expenditures or expenses are recognized in the accounts
and reported in the financial statements.
The government-wide financial statements are reported using the economic resources measurement focus and the accrual
basis of accounting, as are the proprietary and pension trust fund financial statements. Governmental fund financial
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statements are reported using the current financial resources measurement focus and the modified accrual basis of
accounting.
The modified accrual basis of accounting is followed in all governmental and permanent funds of the City. Under the
modified accrual basis of accounting, revenues are recognized when measurable and available. Revenues are generally
considered available if they are collected within the current period or soon enough thereafter (30 days) to pay current
liabilities. For derived tax revenues, such as sales tax and utility business and occupation taxes, revenues are recognized in
the period when the underlying exchange has occurred. For imposed non-exchange taxes, such as property taxes,
revenues are recognized when the use of resources is permitted, or when resources are available. Grant revenue is
recognized in the period in which the expenditure occurs and the eligibility requirements have been met. Non-exchange
transactions, such as contributions, are recognized when the donation eligibility requirements have been satisfied. Those
specific major revenue sources accrued are:
Property Taxes – King County and Pierce County collect property taxes and remit to the City daily or monthly. December
collections by each County, remitted in January, are recognized as revenues in current year even though received in the
subsequent year since they are considered to be measurable and available. Property taxes remaining uncollected at year-
end are reported as “unearned revenue”, since they are not considered to be available.
Sales Tax Revenues – The State of Washington collects all sales taxes. Auburn’s portion is remitted to the City by the State
monthly. The sales tax received in January is recognized as revenue in current year even though received in the
subsequent year because of when the underlying transaction occurred and the resources are considered to be measurable
and available.
Grant Revenues – On cost reimbursement grants, grant revenue is recognized when the eligible expenditure is incurred.
Under the modified accrual basis, expenditures are recorded when the fund liability is incurred, except for the un-matured
interest and principal on general long-term debt, which is recognized when due, and for compensated absences which are
recorded as expenditures when liquidated from expendable available fund resources. Purchases of capital assets from
governmental funds are reported as expenditures during the year incurred and the asset is capitalized and reported on the
government-wide statement of net position. Long-term liabilities, including compensated absences not currently due and
payable, are also reported on the government-wide statement of net position.
The accrual basis of accounting is followed in all proprietary, agency, and pension trust funds. Under the accrual basis of
accounting, revenues are recognized when earned and expenses are recorded when incurred.
The three broad fund categories and nine fund types presented in this report are described below:
1. Governmental Fund Types
All governmental funds are accounted for on a spending or “financial flow” measurement focus. This means that only
current assets and current liabilities and deferred inflow of resources generally are included on their balance sheets.
Their reported fund balance is considered a measure of “available spendable resources”. Governmental fund
operating statements focus on measuring cash flows rather than net income; they present increases (revenues and
other financing sources) and decreases (expenditures and other financing uses) in net current assets.
a. General fund – This fund is used to account for all financial resources and transactions of the City not
accounted for in another fund, as required. The general fund is always considered a major fund.
b. Special Revenue funds – These funds are used to account for the proceeds of specific revenue sources (other
than major capital projects) that are legally restricted to expenditures for specified purposes. One special
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revenue fund is considered major: the arterial street fund. This fund is supported by the State of
Washington’s motor vehicle fuel tax and by various grants and is used for major street construction.
c. Debt Service funds – These funds account for the accumulation of resources for, and the payment of, general
long-term and special assessment debt principal, interest, and related costs. These funds also include the local
improvement districts (LID) guarantee fund which provides financial security for outstanding LID bonds. No
debt service funds are considered major funds and are reported within the “Other Governmental Funds”.
d. Capital Projects funds – These funds are used to account for financial resources to be used for the acquisition
or construction of major capital facilities other than those financed by proprietary funds. One capital project
fund is considered major: the capital improvement projects fund. This fund accounts for major capital
acquisitions, and street and parks construction projects.
e. Permanent funds – These funds are used to account for resources that are legally restricted to the extent that
only earnings, and not principal, may be used for purposes of supporting a specific City program. The city has
one permanent fund, Cemetery Endowment.
2. Proprietary Fund Types
Financial statements for proprietary funds use the economic resources measurement focus and the accrual basis of
accounting. This means that all assets and all liabilities (whether current or non-current) associated with their activity
are included on their Statement of Net Position. Under the accrual basis of accounting, revenues are recognized when
earned and expenses are recorded when incurred. The economic resources measurement focus is applied in the
determination of financial position, net income, and cash flow.
Proprietary funds distinguish operating revenues and expenses from non-operating items. Operating revenues and
expenses generally result from providing services and producing and delivering goods in connection with a proprietary
fund’s principal ongoing operations. The principal operating revenue of the City’s utility funds, other enterprise funds,
and internal service funds are charges to customers for sales and services, vehicle and computer replacement, and
insurance. Operating expenses for enterprise funds and internal service funds include the cost of sales and services,
administrative expenses, taxes, and depreciation on capital assets. All revenues and expenses not meeting this
definition are reported as non-operating revenues and expenses, or as capital contributions. Substantially all
proprietary fund operating revenues are used as security for revenue bonds.
GASB Statement No. 62 Codification of Accounting and Financial Reporting Guidance Contained in Pre-November 30, 1989
FASB and AICPA Pronouncements, provides a codification of private-sector standards of accounting and financial
reporting issued prior to December 1, 1989, to be followed in the financial statements of proprietary fund types. The
City has adopted provisions of GASB Statement No. 62.
a. Enterprise funds – These funds are used to account for services to the general public where all or most of the
costs, including depreciation, are to be financed or recovered from users of such services. Four enterprise
funds are considered major funds. Utilities provided to residents are accounted for in the water fund, sanitary
sewer fund, storm drainage fund, and the solid waste fund.
b. Internal Service funds – These funds are used to account for the financing of goods and services provided to
other funds, departments, or governments on a cost reimbursement basis. The City uses internal service
funds to account for its fleet of vehicles, its maintenance and operation of facilities, the City-wide provision of
computer hardware and software services, the cost of employees affected by an occupational injury or illness,
and its insurance premiums.
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3. Fiduciary Fund Types
Fiduciary funds are used to account for assets held by the City in a trustee capacity or as an agent for individuals,
private organizations, other governments, and/or other funds. These include a Fire Relief and Pension Trust Fund and
an Agency Fund. Each fiduciary fund is classified for accounting measurement purposes as either a governmental fund
or a proprietary fund.
a. Fire Relief and Pension Fund - This fund is accounted for on the accrual basis in essentially the same manner as
proprietary funds since capital management is critical. Based on actuarial recommendations, there are no
employee contributions or employer contributions to the Fire Relief and Pension Plan. Pension benefits are
recognized when due; plan administration costs are also recognized when incurred in this fund. Effective in 2016,
the Fire Relief and Pension Fund is now reported with other governmental funds as a result of implementing the
applicable provisions of GASB 73. The fund financial activity was previously reported on the Statement of
Fiduciary Net Position and Statement of Changes in Fiduciary Net Position.
b. Agency Fund – This fund is custodial in nature on behalf of another individual, entity, or government and does not
involve a measurement of results of operations.
D. Budget and Budgetary Accounting
The City of Auburn budgets in accordance with the Revised Code of Washington (RCW) 35A.33 for the general and special
revenue funds. For governmental funds, there are no substantial differences between the budgetary basis and generally
accepted accounting principles. Budgetary accounts are integrated in fund ledgers for all budgeted funds, but the financial
statements include budgetary comparisons for the biennial budgeted governmental funds only. Budgets established for
proprietary and trust funds are “management budgets”, and are not legally required to be reported and, as such, are not
reported in the CAFR.
The biennial budget is proposed by the Mayor and adopted by the City Council with legal budgetary control at the fund
level; i.e., expenditures and other financing sources may not exceed budgeted appropriations at the fund level. The Mayor
may authorize transfers within funds; however, the City Council must approve by ordinance any amendments that increase
the total for the fund. Any unexpended appropriation balances lapse at the end of the fiscal year.
The City prepares the biennial budget on the modified accrual basis, which conforms to Generally Accepted Accounting
Principles (GAAP). The CAFR includes budgetary comparisons for those governmental funds with legally adopted budgets.
Budget amounts include the adopted current year budget appropriations and any revisions made during the year.
State law establishes the budget process and the time limits under which a budget must be developed. The City follows
the procedures outlined below to establish its biennial budget:
a. Sixty days prior to each odd numbered fiscal year, the Mayor submits to the City Council a preliminary budget for
the biennium commencing the following January 1st. The operating budget includes proposed expenditures and
funding sources.
b. Public hearings are conducted at the Auburn City Council Meetings to obtain taxpayer comments.
c. Prior to December 31st, the budget is legally enacted through passage of an ordinance.
d. The final operating budget as adopted is published and distributed after adoption. Copies of the budget are made
available to the public.
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Original Final
Budget Revisions Budget
Governmental Funds
General Fund 64,735,515$ 3,742,398$ 68,477,913$
Total Governmental Funds 64,735,515 3,742,398 68,477,913
Special Revenue Funds:
Local Street 1,600,000$ 1,264,398$ 2,864,398$
Arterial Street 12,320,712 6,484,926 18,805,638
Hotel/Motel Tax 86,000 141,500 227,500
Arterial Street Preservation 2,884,378 2,112,193 4,996,571
Drug Forfeiture Fund 273,027 - 273,027
Housing and Community Development 440,000 715,398 1,155,398
Business Improvement Area 55,000 - 55,000
Cumulative Reserve 1,917,084 36,214 1,953,298
Mitigation Fees 1,221,827 2,719,018 3,940,845
Total Special Revenue Funds 20,798,028 13,473,647 34,271,675
Total Budgeted Funds 85,533,543$ 17,216,045$ 102,749,588$
ORIGINAL AND SUPPLEMENTAL APPROPRIATIONS
E. Assets, Liabilities, and Fund Balance
1. Deposits and Investments
It is the City’s policy to invest all temporary cash surplus. At December 31, 2016, the Washington State Local
Government Investment Pool (LGIP) was holding $120,563,008 in short-term investments. This amount is classified on
the Statement of Net Position as cash and cash equivalents. The interest on these investments is prorated to the
various funds based upon ownership of investments. For purposes of the Statement of Cash Flows, cash and cash
equivalents includes cash on deposit with financial institutions in both demand and time deposit accounts, and
amounts invested in the Local Government Investment Pool, administered by the State Treasurer’s Office because it is
operated in a manner consistent with a Securities and Exchange Commission’s Rule 2a-7 of the Investment Company
Act of 1940. The State Finance Committee is the administrator of the statute that created the pool and adopts
appropriate rules. The State Treasurer’s Office is responsible for establishing the investment policy for the pool and
reviews it annually. Any proposed changes are reviewed by the LGIP Advisory Committee. The terms of the policy are
designed to ensure the safety and liquidity of the funds deposited in the LGIP.
The City, by state law, is authorized to purchase certificates of deposit issued by Washington State depositories that
participate in Washington Public Deposit Protection Commission (WPDPC), U.S. Treasury and Agency securities,
banker’s acceptances, and repurchase agreements. The City purchases repurchase agreements only from institutions
that use authorized securities for collateral. The City of Auburn also has signed a “master repurchase agreement” with
its primary bank, Key Bank.
For purposes of the statement of cash flows, all proprietary fund types and similar trust funds consider all highly liquid
investments (including restricted assets) with maturity of three months or less when purchased to be cash
equivalents.
Investments are recorded at fair value. Adjustments are made to cost for investments amortized over the period to
maturity in accordance with GASB Statement No. 31. The investment in the state investment pool is valued at the
pool’s share price.
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2. Receivables
Taxes receivable consist of property taxes (see Note 4). Accrued interest receivable consists of amounts earned on
notes and contracts at the end of the year.
Customer accounts receivable consist of amounts owed by private individuals or organizations for goods and services
provided. Uncollectible amounts are considered immaterial and the direct write-off method is used.
Special assessments are levied against certain property owners and become liens against the property benefited by
the improvement. Special assessments receivable consist of current assessments, which are due within one year,
delinquent assessments remaining unpaid after the due date, and unearned, uncollected assessments, which have
been levied, but are not due within one year.
Other receivables include utility taxes due from private organizations and customer accounts receivable, which consist
of amounts owed from private individuals or organizations for goods and services, including amounts owed for which
billings have not been prepared. Notes and contracts receivable consist of amounts owed on open accounts from
private individuals or organizations for goods and services rendered.
3. Interfund Receivables and Payables
These accounts include all interfund receivables and payables. A separate schedule of interfund activity is furnished in
Note 5.
4. Amounts Due From Other Governmental Units
This account includes amounts due from other governments for grants, entitlements and charges for services. A
schedule by fund of amounts due from other governmental units is presented in Note 6.
5. Inventories and Prepaid Expenses
Government fund types recognize the cost of inventory items and prepaid expenses (expenses that benefit future
periods) as expenditures in the year of purchase. In governmental funds, materials and supplies remaining at year-end
are immaterial and not included in inventory. In enterprise and internal service funds, inventories are valued at cost
using the weighted average costing method.
6. Restricted Assets
In accordance with the utility bond ordinances, state law, or other agreements, separate restricted assets have been
established. These assets are restricted for specific purposes including the establishment of bond reserve funds, utility
rate stabilization funds, financing the ongoing capital improvement programs of the various utilities, customer
deposits, nonexpendable permanent cemetery endowment and other purposes.
7. Interfund Transactions
During the course of normal operations, the City has numerous transactions between City funds. Interfund services
provided and used, such as buying goods and services, are recorded as revenues in the internal services funds and
expenditures in the paying fund. Transfers between funds are included as “other financing sources or uses” in
governmental fund types and as other items in proprietary fund types.
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8. Capital Assets
Capital assets are recorded at historical cost when known or at estimated historical cost when actual costs are not
known. Infrastructure, such as roads, bridges and water mains, is reported in the applicable government or business-
type activities columns in the government-wide statement of net position. All infrastructure costs have been
calculated and are reported. Government-donated capital assets are stated at their market value on the date donated.
Major outlays for capital assets and improvements are capitalized as projects are constructed. The costs of normal
maintenance and repairs that do not add to the value of the asset or materially extend asset lives are not capitalized.
For proprietary funds, interest costs incurred to bring certain assets to the condition and location necessary for their
intended use are capitalized as part of the historical cost of acquiring the assets. Additionally, in situations involving
the acquisition of certain assets financed with the proceeds of tax-exempt borrowing, any interest earned on related
interest-bearing investment from such proceeds are offset against the related interest costs in determining either
capitalization rates or limitations on the amount of interest costs to be capitalized.
Capital assets of enterprise and internal service funds are recorded at cost. The capital assets of the airport are carried
at cost and include those acquired with capital contributed by the Federal Government.
Capital assets of all funds are depreciated, and are calculated on the straight-line method using estimated lives as
follows:
Asset
Capitalization
Threshold Depreciation Method
Estimated Useful
Life
Building $5,000 Straight-line 20 - 50 years
Other Improvements $5,000 Straight-line 10 - 50 years
Equipment/Machinery $5,000 Straight-line 2 - 20 years
Infrastructure $5,000 Straight-line 25 - 50 years
Utility Plant $5,000 Straight-Line 25 - 50 years
At the inception of capital leases at the government fund reporting level, the net present value of future minimum
lease payments allocable to the capital asset is reflected as expenditures and an “other financing source” of an equal
amount.
9. Pensions
For purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of resources
related to pensions, and pension expense, information about the fiduciary net position of all state sponsored pension
plans and additions to/deductions from those plans’ fiduciary net position have been determined on the same basis as
they are reported by the Washington State Department of Retirement Systems. For this purpose, benefit payments
(including refunds of employee contributions) are recognized when due and payable in accordance with the benefit
terms. Investments are reported at fair value.
10. Deferred Outflows/Inflows of Resources
Deferred outflow of resources is the consumption of net position by the government that is applicable to a future
reporting period. The deferred amount on special assessments consist of special assessments not due within one year
is reported as deferred outflows of resources in the governmental funds. Deferred inflow of resources is acquisition of
net position by the government that is applicable to a future reporting period. The difference between the carrying
amount of redeemed and/or defeased debt and its reacquisition price is the deferred amount on refunding and is
amortized over the remaining life of the debt, or the life of the new debt, whichever is shorter. Deferred outflows and
deferred inflows of resources related to pensions are reported for differences between expected and actual
experience, changes of assumptions, and differences between projected and actual returns on pension plan
investments.
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11. Compensated Absences
City employees accrue vacation leave at a variable rate based on years of service. In general, employees are allowed to
accumulate vacation leave up to what would be earned in two years.
Unaffiliated employees accrue sick leave at the rate of eight hours per month up to 960 hours. Sick leave
accumulations over 960 hours at year-end are paid at 25%. Sick leave is not paid upon termination except in some
instances upon separation in good standing, where employees hired before 12/31/1984 can be reimbursed at their
current rate for unused sick leave up to a maximum of 960 hours, at a rate based on years of service. The City’s union
contracts have varied sick leave accruals and payout options.
In general, non-exempt employees can accrue up to 80 hours of compensatory time. The City reports compensated
absences as liabilities in the government-wide statement of net position and in proprietary funds. Vacation,
compensatory time, and sick leave are calculated separately for each employee using the rules described above. The
reporting format is in compliance with GASB statement No. 16.
Governmental funds recognize expenditures for vacation, sick, and compensatory time when paid. Proprietary and
pension trust funds recognize the expense and accrue a liability for vacation and sick leave pay as the leave is earned.
All compensated absence liabilities include salary-related payments, where applicable.
12. Unearned Revenues
This account reflects the amounts of taxes and other long-term receivables for which the revenue recognition criteria
have not been met. It also reflects prepayments on accounts and grants received in advance.
13. Fund Balance Components – Proprietary Funds
In proprietary funds, net position is generally restricted in connection with restricted assets or for legal segregation.
These restrictions are identified on the statement of net position of each fund type.
The City holds and administers a Utility System Rate Stabilization Fund. The City may, by ordinance, withdraw from the
Rate Stabilization Fund for inclusion in the net revenue of the Utility System at any time for any current fiscal year of
the Utility System, except that the total amount withdrawn from the Rate Stabilization Fund in any fiscal year may not
exceed the total debt service of the Utility System in that year.
14. Fund Balance Components – Governmental Funds
Fund balance is presented in the governmental fund financial statements and represents the difference between
assets and liabilities reported within the governmental fund.
Beginning with the most restrictive constraints, fund balance amounts are reported in the following categories:
a. Nonspendable fund balance includes items that cannot be spent. This includes activity that is not in a
spendable form (investments, prepaid amounts, long-term portion of loans/notes receivable, or property
held for resale unless the proceeds are restricted, committed or assigned) and activity that is legally or
contractually required to remain intact.
b. Restricted fund balance is externally (outside the City) enforceable limitations imposed by creditors,
grantors, contributors, laws and regulations of other governments, or laws through constitutional
provisions or enabling legislation.
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c. Committed fund balance is self-imposed limitations imposed at the highest level of decision making
authority, namely, Mayor and City Council. Mayor and City Council approval by ordinance is required to
commit, modify or rescind resources.
d. Assigned fund balance includes amounts that are constrained by the City’s intent to be used for a specific
purpose, but are neither restricted nor committed. It is the City’s policy that the Finance Director shall
have the authority to assign amounts of fund balance to a specific purpose; however, before expenditure,
amounts must be appropriated by the City Council which is often adopted by City Council in the biennial
budget ordinance. For governmental funds, other than the General Fund, this is the residual amount
within the fund that is not restricted or committed.
e. Unassigned fund balance is the residual amount of the General Fund not included in the four categories
described above. Also, any deficit fund balances within the other governmental fund types are reported as
unassigned.
When expenditure is incurred for purposes for which both restricted and unrestricted resources are available, it is the
City’s policy to use restricted resources first. When expenditures are incurred for purposes, for which unrestricted
(committed, assigned, and unassigned) resources are available, and amounts in any of these unrestricted
classifications could be used, it is the City’s policy to spend committed resources first, then assigned and unassigned, in
that order.
The following shows the composition of the fund balance of the governmental funds for the fiscal year ended
December 31, 2016:
Arterial Capital Other Total
General Street Improvement Governmental Governmental
Fund Fund Fund Funds Funds
Nonspendable
Cemetery Endowment -$ -$ -$ 1,666,043$ 1,666,043$
Total Nonspendable - - - 1,666,043 1,666,043
Restricted
Major Street Construction - 2,655,913 - - 2,655,913
REET 1 Allowable Projects - - 3,691,838 - 3,691,838
REET 2 Allowable Projects - - 5,800,966 - 5,800,966
Arterial Street Presevation Fund - - - 101,328 101,328
Parks and Trails Construction Projects - - - 982,900 982,900
City Tourism Promotion - - - 180,146 180,146
Drug Investigation and Enforcement - - - 451,507 451,507
Community Development Block Grant Program - - - 44,904 44,904
Recreational Trail Development - - - 49,629 49,629
Downtown Business Area Improvements - - - 58,260 58,260
Street and Fire Service Mitigation Fees - - - 11,049,890 11,049,890
Debt Service - - - 11,945 11,945
Total Restricted - 2,655,913 9,492,805 12,930,509 25,079,227
Committed
Local Street Improvements (Save our Streets)- - - 2,263,195 2,263,195
Aterial Street Preservation - - - 3,158,445 3,158,445
Total Committed - - - 5,421,640 5,421,640
Assigned
Appropriations Over Estimated Revenue 7,160,098 - - - 7,160,098
Arterial Street Presevation Fund - - 539,704 9,858 549,562
Drug Investigation and Enforcement - - - 1,945 1,945
Recreation Trail Development - - - 193 193
Downtown Business Area Improvements - - - 212 212
Local Street Improvements - - - 161,532 161,532
School Administration Fees - - - 44,615 44,615
Cemetery Capital Enhancement and Maintenance - - - 77,766 77,766
Downtown Infrastructure Improvements - - - 390,490 390,490
Total Assigned 7,160,098 - 539,704 686,611 8,386,413
Unassigned
Unassigned 24,991,081 - - - 24,991,081
Total Unassigned 24,991,081 - - - 24,991,081
Total Fund Balances 32,151,179$ 2,655,913$ 10,032,509$ 20,704,803$ 65,544,404$
Governmental Fund Balances
December 31, 2016
Major
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F. Revenues, Expenditures and Expenses
Operating revenues and expenses for the proprietary fund are those that result from providing services and producing and
delivering goods and/or services in connection with a proprietary fund’s principal ongoing operations. For the city,
operating expenses for proprietary funds and internal service funds include the cost of sales and services, administrative
expenses, and depreciation of capital assets. All revenues and expenses not meeting this definition are reported as non-
operating revenues and expenses.
Contributions of capital in proprietary fund financial statements arise from internal and external contributions of capital
assets or from grants or outside contributions of resources restricted to capital acquisition and construction.
Transfers between government and business-type activities on the government-wide statement of activities are reported
as general revenues. Transfers between funds reported in the governmental activities column are eliminated, as are
transfers between funds reported in the business-type activities column.
G. Estimates
The preparation of the financial statements in conformity with accounting principles generally accepted in the United
States requires management to make estimates and assumptions that affect the amounts reported in the financial
statements and accompanying notes. Actual results may differ from those estimates.
NOTE 2 – STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY
There have been no material violations of finance-related legal or contractual provisions, and there have been no
expenditures exceeding legal appropriations in any of the funds of the City of Auburn.
NOTE 3 – DEPOSITS AND INVESTMENTS
At December 31, 2016, the carrying amount of the City’s cash demand deposits with Key Bank totaled $4,712,232 while the
bank balance was $6,295,016. In addition, there was $17,300 in petty cash ($10,000 in the Drug Forfeiture Fund to be used
for enforcements purposes, $7,300 in various petty cash and cashier change funds).
Custodial Credit Risk. Custodial credit risk is the risk associated with the failure of a depository financial institution. In the
event of a depository financial institution’s failure, it is the risk that the City would not be able to recover its deposits or
collateralized securities that are in the possession of the outside parties.
The City minimizes custodial credit risk by following the restrictions set forth in state law.
The Federal Deposit Insurance Corporation (FDIC) insures the City’s deposits up to $250,000. The Washington Public
Deposit Protection Commission (WPDPC) (established under Chapter 39.58 of the Revised Code of Washington)
constitutes a multiple financial institution collateral pool. Pledged securities under the WPDPC collateral pool are held by
the WPDPC’s agent in the name of the collateral pool.
As required by State law, all investments of the City’s funds are obligations of the U.S. Government, or deposits with
Washington State banks that participate in the WPDPC. Pension and permanent funds are not subject to these limitations.
All temporary investments are stated at cost. Other investments are shown on the statement of net position at fair value.
Investments that were not at par value (cost) as of December 31, 2016 are reported at fair value. The fair value of the
position in the state investment pool is the same as the value of shares held by the City in the pool at amortized cost
because it is operated in a manner consistent with the Securities and Exchange Commission’s Rule 2a-7 of the Investment
Company Act of 1940.
During 2016, the net decrease in the fair value of investments being held for more than one year is $2,504 at year-end.
City of Auburn: 2016 CAFR Notes to the Financial Statements
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As of December 31, 2016, the City had the following investments and maturities:
Governmental Business-Type
Activities Activities Total
Cash and Cash Equivalents 56,436,240$ 42,987,298$ 99,423,538$
Cash with Outside Agencies 230,699 - 230,699
Investments 1,233,651 - 1,233,651
Temporarily Restricted:
Cash and Cash Equivalents 17,385,011 6,576,502 23,961,513
Permanently Restricted:
Cash and Cash Equivalents 1,666,043 - 1,666,043
76,951,644$ 49,563,800$ 126,515,444$
Reconciliation of Cash and Investments
Government-Wide Statement of Net Position
As of December 31, 2016
The city measures and reports investments at fair value using the valuation input hierarchy established by generally
accepted accounting principles, as follows:
*Level 1 – Quoted prices in active markets for identical assets or liabilities;
*Level 2 – These are quoted market prices for similar assets or liabilities, quoted prices for identical or similar assets or
liabilities in markets that are not active, or other quoted prices that are not observable;
*Level 3 – Unobservable inputs for an asset or liability.
Fair Less than 1 to 2 2 to 3 Greater than
Investment Type Value 1 year years years 3 years
State investment pool 120,563,008$ 120,563,008$ -$ -$ -$
US Treasuries 997,170 - - 997,170 -
US Agencies 236,481 236,481 - - -
121,796,659$ 120,799,489$ -$ 997,170$ -$
Reconciliation to government-
wide statement of net position:
Total investments above 121,796,659$
Plus: cash in checking 4,712,232
Plus: petty cash 17,300
Less: cash investments in fiduciary funds (241,445)
Total cash and investments, government-
wide statement of net position 126,284,745$
Schedule of Investments by Maturities
As of December 31, 2016
Investment maturities
City of Auburn: 2016 CAFR Notes to the Financial Statements
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At December 31, 2016, the city had the following investments measured at fair value:
Quoted Prices in
Active Markets for
Identical Assets
Significant
Other
Observable
Inputs
Significant
Unobservable
Inputs
Investments by Fair Value Level 12/31/2017 (Level 1)(Level 2)(Level 3)
US Treasuries - Federal National Mortgage Assoc.997,170$ 997,170$ -$ -$
US Agencies - Lakehaven Utility District (WA) Bonds 236,481$ - 236,481 -
Total Investments by Fair Value Level 1,233,651$ 997,170$ 236,481$ -$
Investments and Derivative Instruments Measured at Fair Value
As of December 31, 2016
Fair Value Measurements Using
Interest Rate Risk
Interest rate risk is the risk that changes in interest rates of debt investments will adversely affect the fair value of an
investment. As a means of limiting its exposure to fair value losses arising from rising interest rates, the City’s investment
policy limits the maximum maturity of an investment to not greater than three years, unless an investment is matched to
an anticipated future cash flow. The segmented time distribution presented in the schedule of investments by maturity
above indicates how the City has managed its interest rate risk.
Credit Risk
Credit risk is the risk that an issuer or other counterparty to an investment will not fulfill its obligations. State law and the
City’s investment policy limits the instruments in which the City may invest. These include:
1. United States bonds
2. United States certificates of indebtedness
3. Bonds or warrants of the State of Washington
4. General obligation or utility revenue bonds or warrants of its own or of any other city or town in the State
5. Its own bonds or warrants of a local improvement district which are within the protection of the local
improvement guaranty fund
6. Savings or time accounts in designated public depositories
7. Certificates, notes or bonds of United States agencies, or corporations wholly owned by the United States.
8. Repurchase agreements
9. Banker’s acceptances
10. Federal Home Loan Bank notes and bonds, Federal Land Bank bonds, Federal National Mortgage Association
notes, debentures and guaranteed certificates of participation, or obligations of any other government sponsored
corporation whose obligations are or may be eligible as collateral for advances to member banks as determined by
the Board of Governors of the Federal Reserve System or any portion thereof in investment deposits as defined in
RCW 39.8.010 secured by collateral in accordance with RCW 39.58
11. Interim financing warrants of local improvement districts
12. State Local Government Investment Pool
City of Auburn: 2016 CAFR Notes to the Financial Statements
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As of December 31, 2016, the City had investments in a limited number of investment instruments as follows:
• U.S. Treasuries
• State Local Government Investment Pool
• Lakehaven Utility District (WA) Bonds
With the exception of the State Local Government Investment Pool which is not rated and Lakehaven Utility District (WA)
Bonds which has a Moody’s rating of Aa2, all other investments above carried a rating of Aaa by Moody’s rating service at
December 31, 2016.
Concentration of Credit Risk
Concentration of credit risk is the risk of loss attributed to the magnitude of an investment in a single issuer. The City
diversifies its investments by security type and institution. The investment policy states: “With the exception of US
Treasury securities and the State Investment Pool, no more than 20% of the City’s total investment portfolio will be
invested in a single security type or with a single financial institution”.
Other information
Effective 2002, the City has established arrangements with Bank of New York for safekeeping of all investments.
The following is a schedule of investments by fund type:
State
Investment U.S.
Pool Securities Total
General Fund -$ 1,233,651$ 1,233,651$
Permanent Fund - -
Enterprise Funds - - -
Internal Service Funds - - -
Fiduciary Funds - - -
Treasurer's Residual Funds 120,563,008 - 120,563,008
Total 120,563,008 1,233,651$ 121,796,659$
As of December 31, 2016
Schedule of Investments by Fund Category and Investment Type
City of Auburn: 2016 CAFR Notes to the Financial Statements
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NOTE 4 – PROPERTY TAXES
Property taxes received during tax year 2016 were $18,067,324 including collection of prior year delinquent assessments.
Property taxes assessed for collection in tax year 2016 were based on a regular tax levy of $2.08 per $1,000 on a total 2015
assessed value of $8,826,618,865.
For levy year 2016, to be received in 2017, the City’s regular tax levy is $2.05 per $1,000 on a 2016 assessed valuation of
$9,555,039,113, as of December 31, 2016, for a total regular levy of $20,962,812. State law provides that debt cannot be
incurred in excess of the following percentages of the taxable property of the City.
1.50% of assessed value without a vote of the people
2.50% of assessed value with a vote of the people
The City has additional authority to incur the following debt as a percentage of total valuation.
2.50% of assessed value with a vote of the people, indebtedness is for utilities
2.50% of assessed value with a vote of the people, indebtedness is for parks, or open space development
At December 31, 2016, the debt limits for the City were as follows:
The County Treasurer acts as an agent to collect property taxes levied in the county for all taxing authorities. Taxes are
levied annually on January 1 on property values listed as of the prior August 31. The County assesses property at 100% of fair
market value. A revaluation of all property is required every and a physical inspection is required at least once every six
years.
Property taxes levied by the County Assessor and collected by the County Treasurer become a lien on the first day of the
levy year and may be paid in two installments if the total amount exceeds $50. The first half of real property taxes is due
on April 30 and the balance is due October 31. Delinquent taxes bear interest at the rate of 12% and are subject to additional
penalties if not paid as scheduled. No allowance for uncollectable taxes is established because delinquent taxes are
considered fully collectable.
At year-end, property taxes are recorded as a receivable with the portion not expected to be collected within 60 days after
the current period are reported as other unavailable revenue in the deferred inflow of resources section of the
governmental funds financial statements. During the year, property tax revenues are recognized when cash is received.
1. The Washington State Constitution limits the total regular property taxes to 1% of assessed valuation or $10 per $1,000
of value. If the taxes of all districts exceed this amount, each is proportionately reduced until the total is at or below
the 1% limit.
For Parks or
Without General For Open Space
a Vote Purposes Utilities Development Total
Item 1.50%1.00%2.50%2.50%Capacity
Legal Limit 143,325,587$ 95,550,391$ 238,875,978$ 238,875,978$ 716,627,934$
Outstanding indebtedness (57,151,577) - - - (57,151,577)
Margin available 86,174,010$ 95,550,391$ 238,875,978$ 238,875,978$ 659,476,357$
With a Vote
City of Auburn: 2016 CAFR Notes to the Financial Statements
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2. Washington State law in RCW 84.55.010 limits the annual growth of regular property taxes to the lesser of 1% or the
rate of inflation. With a vote of the majority of the voters within a taxing district, the 1% levy limitation can be “lifted”
and additional taxes may be levied
3. The City may voluntarily levy taxes below the legal limit.
Special levies approved by the voters are not subject to the above limitations.
Property taxes are recorded as receivable and offset by an unearned revenue account when levied. Since state law allows
for the sale of property for failure to pay taxes, no estimate of uncollectible taxes is made.
City of Auburn: 2016 CAFR Notes to the Financial Statements
72
NOTE 5 – INTERFUND ACTIVITY
Transfers are legally authorized transfers of resources from a fund receiving revenue to the fund through which resources
are to be expended. The principal purposes for interfund transfers include interfund subsidies, transfers into capital
project and debt service funds and transfers into internal service funds for interfund facility, information services and
equipment rental services. Interfund transfers for the year ended December 31, 2016 were as follows:
Funds Transfer In Transfer Out
Governmental funds:
General 215,177$ 2,703,229$
General - Cumulative Reserve 1,500,000 805,897
Total general fund 1,715,177 3,509,126
Special revenue funds:
Arterial Streets 1,759,352 -
Local Streets 150,000 -
Hotel / Motel tax - 25,000
Arterial Street Preservation 18,250 41,091
Mitigation Fees - 1,776,058
Special parks and recreation - -
Total special revenue funds 1,927,603 1,842,149
Debt service funds:
1998 Library GO 284,995 -
2010 A&B Annex 1,315,652 -
2010 C&D Local Revitalization 231,711 -
Golf Debt Service 351,553 -
Total debt service funds 2,183,912 -
Capital projects funds:
Municipal Park Construction 4,895,655 -
Capital Improvements 398,920 5,831,338
Total capital projects funds 5,294,575 5,831,338
Proprietary funds:
Water - 88,921
Sewer 3,000,000 3,107,430
Storm Drainage 2,000,000 2,227,822
Airport 150,000 150,000
Cemetery - -
Total proprietary funds 5,150,000 5,574,173
Internal service funds:
Facilities - 659,712
Innovation & Technology 2,013,914 1,500,000
Equipment Rental 2,257,710 1,626,392
Total internal service funds 4,271,623 3,786,104
Total 20,542,890$ 20,542,890$
All transfers are considered routine.
Transfers
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Loans between funds are classified as interfund receivable and payable. Interfund Loans do not affect total fund equity.
Balance Balance
Due From Due To 1/1/2016 New Loans Repayments 12/31/2016
Airport Fund Capital Improvement 183,395$ -$ 49,713$ 133,682$
Parks Construction General fund 400,000$ -$ -$ 400,000$
Housing & Comm. Development General fund -$ 50,000$ -$ 50,000$
Total interfund loans 583,395$ 50,000$ 49,713$ 583,682$
All interfund loans are considered short-term cash loans.
*The purpose of the interfund loan to The Airport Fund is to cover the cost of The Auburn Municipal T Hanger Enclosure Project.
*The purpose of the interfund loan to the Municipal Parks Construction Fund (a Grant Sustained Fund), is to cover authorized expenditures
while the city waits for reimbursement of federal, state, and local grant monies.
*The purpose of the interfund loan to the Housing & Community Development Fund is to cover authorized expenditures while the
city waits for reimbursement of federal grant monies.
Interfund Loans
City of Auburn: 2016 CAFR Notes to the Financial Statements
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NOTE 6 – DUE FROM OTHER GOVERNMENTAL UNITS
As of December 31, 2016 the City had receivables due from other governmental units as follows:
General Fund:
Okanogan County -Disaster Response 91
Lakehaven Utility District 254
King Conservation District -Farmer's Market 11,027
King County District Court 541,145
King County Elections 780
King County Library Systems 2,280
King County -Real Estate Excise Taxes 266,208
King County Sheriff's - Registered Sex Offender Grant 252
Pierce County - Real Estate Excise Taxes 12,717
Muckleshoot Indian Tribe 172,105
Department of Commerce -TNET 550
Seattle Police Dept -US Department of Justice JAG Grant 19,880
US Department of Justice -Bulletproof Vest Program 8,393
US Department of Justice -COPS Hiring Program 72,919
US Department of Justice -Edward Byrne Memorial Grant 3,136
WA Auto Theft Prevention Authority - Auto Theft Prevention Grant 46,897
WA State Department of Ecology -Area-wide Redevelopment Plan 36,304
WA State Traffic Safety Commission - Seat belt / DUI enforcement 2,538
WA State Treasurer - Sales Taxes 1,372,567
Total General Fund 2,570,040
Arterial Street Fund:
WA State Transportation Improvement Board - Arterial Street Imp.434,902
WA Dept. of Transportation - Arterial street imp.2,197,411
Total Arterial Street Fund 2,632,314
Arterial Street Preservation Fund:
WA Dept. of Transportation - Arterial street imp.64,025
Drug Forfeiture Fund:
Pierce County Sheriff's Department -TNET 8,438
Housing & Community Development:
U.S. Dept. of Housing - Community Development Block Grant 135,762
Municipal Park Construction:
King Conservation District 20,000
Total Municipal Park Construction Fund 20,000
General Government Capital Improvements:
KC Flood Control District 83,727
Pierce County - Real Estate Excise Taxes 42,166
125,893
Water Fund:
WA Department of Commerce 7,792
Okanogan County -Disaster Response 146
7,938
Sewer Fund:
Okanogan County -Disaster Response 142
Storm Fund:
WA State Department of Ecology 96,979
King Conservation District 20,000
King County Flood Control District 320,949
Okanogan County -Disaster Response 142
Total Storm Drainage Fund 438,070
Solid Waste Fund:
Department of Ecology- Coordinated Prevention Grant 2,871
King County - Local hazardous waste management grant 17,546
King County - Waste reduction and recycling grant 44,338
Total Solid Waste fund 64,755
Airport Fund
Federal Aviation Administration 33,041
WA Department of Transportation -Aviation Division 1,836
Total Airport fund 34,877
Facilities Fund:
VRFA 15
Information Services Fund:
City of Algona 579
City of Pacific 3,424
VRFA 2,024
Total Information Services fund 6,027
Total 6,108,295
Reconciliation to government-wide statement of net assets:
Total above due from other governmental units 6,108,295
Amount due to fiduciary fund -
Total due from other governmental units,
6,108,295
Due from Other Governmental Units
government-wide statement of net assets
City of Auburn: 2016 CAFR Notes to the Financial Statements
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NOTE 7 – CAPITAL ASSETS AND DEPRECIATION
Balance Decreases/Balance
1/1/16 Increases Adjustments 12/31/16
Governmental activities:
Capital assets, not being depreciated:
Land 108,289,765$ 715,359$ (211,422)$ 108,793,702$
Construction in progress 9,589,142 10,955,831 (9,545,487) 10,999,486
Total capital assets, not being depreciated 117,878,907 11,671,190 (9,756,909) 119,793,188
Capital assets, being depreciated:
Buildings 65,346,652 8,349,028 (140,948) 73,554,732
Improvements other than buildings 22,159,538 398,121 - 22,557,659
Machinery and equipment 25,478,285 3,052,301 (241,672) 28,288,914
Intangibles 1,095,684 - - 1,095,684
Infrastructure 357,285,769 8,479,524 - 365,765,293
Total capital assets being depreciated 471,365,928 20,278,974 (382,620) 491,262,282
Less: accumulated depreciation for:
Buildings (17,003,559) (1,449,545) - (18,453,104)
Improvements other than buildings (13,974,738) (769,580) - (14,744,318)
Machinery and equipment (18,204,723) (1,858,650) 210,958 (19,852,415)
Intangibles (748,591) (154,563) - (903,154)
Infrastructure (143,455,790) (13,268,797) - (156,724,587)
Total accumulated depreciation (193,387,401) (17,501,135) 210,958 (210,677,578)
Total capital assets, being depreciated, net 277,978,527 2,777,839 (171,662) 280,584,704
Governmental activities capital assets, net 395,857,434$ 14,449,029$ (9,928,571)$ 400,377,892$
Business-type activities:
Capital assets, not being depreciated:
Land 12,526,187$ -$ -$ 12,526,187$
Water Rights 5,196,600 - - 5,196,600
Construction in progress 16,866,891 8,310,693 (17,554,505) 7,623,079
Total capital assets, not being depreciated 34,589,678 8,310,693 (17,554,505) 25,345,866
Capital assets, being depreciated:
Buildings 5,741,934 297,669 - 6,039,603
Improvements other than buildings 289,052,484 22,879,222 - 311,931,706
Machinery and equipment 2,480,505 - - 2,480,505
Total capital assets being depreciated 297,274,923 23,176,891 - 320,451,814
Less: accumulated depreciation for:
Buildings (3,821,361) (111,413) - (3,932,774)
Improvements other than buildings (100,551,097) (7,499,516) - (108,050,613)
Machinery and equipment (2,184,429) (31,048) - (2,215,477)
Total accumulated depreciation (106,556,887) (7,641,977) - (114,198,864)
Total capital assets, being depreciated, net 190,718,036 15,534,914 - 206,252,950
Business-type activities capital assets, net 225,307,714$ 23,845,607$ (17,554,505)$ 231,598,816$
Schedule of Capital Asset Activity
City of Auburn: 2016 CAFR Notes to the Financial Statements
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Capital asset activity for the year ended December 31, 2016 is as follows:
Depreciation/amortization expense was charged to functions/programs of the City as follows:
The 2016 total interest cost incurred for business-type activities was $1,394,885 of which $1,279,574 was charged to
expense and $115,311 capitalized.
NOTE 8 – CAPITAL LEASE OBLIGATION
The City has the following capital leases:
On January 1, 2007 the City entered into a capital lease agreement for the Auburn Avenue Theater facility for a 15 year term.
The intent is for the City’s Parks, Arts and Recreation department to offer performances to the public, as well as make the
facility available for short-term rentals.
On July 15, 2015 the City entered into a 5 year term capital lease agreement to finance the purchase of a John Deere
Excavator. The lease agreement qualifies as a capital lease for accounting purposes.
The assets acquired through capital leases are as follows:
Governmental
Asset Activities
Auburn Avenue Theater 749,110$
John Deere Excavator 204,710
Less: Accumulated Depreciation (546,806)
Total Assets Acquired Through Capital Leases 407,014$
Assets Acquired Through Capital Leases
Governmental activities:
General government 1,007,089$
Public safety 441,444
Transportation 12,867,587
Physical environment -
Culture and recreation 1,397,035
Economic environment -
Capital assets held by the City's internal service funds are charged to the various
functions based on their usage of the assets 1,787,980
Total depreciation/amortization expense - governmental activities 17,501,135$
Business-type activities:
Water 3,014,425$
Sanitary sewer 2,183,012
Storm water 1,920,663
Solid waste 18,819
Golf course -
Airport 454,477
Cemetery 50,578
Total depreciation expense - business-type activities 7,641,974$
City of Auburn: 2016 CAFR Notes to the Financial Statements
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The future minimum lease obligation and the net present value of these minimum lease payments as of December 31, 2016,
were as follows:
Theater Excavator Total
2017 78,168 44,140 122,308
2018 78,168 44,140 122,308
2019 78,168 44,140 122,308
2020 78,168 22,480 100,648
2021 78,157 - 78,157
2025-2029 - - -
2030-2034 - - -
2035-2039 - - -
Total minimum lease payments 390,829 154,900 545,729
Less: Amounts representing interest (59,741) (8,416) (68,157)
Present value of future minimum lease payments 331,088$ 146,484$ 477,572$
Lease Payable
Schedule of Future Minimum Lease Payments
NOTE 9 – LONG-TERM LIABILITIES
General Obligation Bonds are direct obligations of the City for which its full faith and credit are pledged. Debt service for
voter-approved issues, of which the City has none, would be funded by special property tax levies. Debt service for City
Council authorized bonds, also called councilmanic bonds, is funded from regular property taxes or general revenues, and
is generally paid from debt service funds but can be paid from other designated funds.
General Obligation Bonds outstanding at year-end are as follows:
• 2010A Limited Tax General Obligation Improvement and Refunding bonds were issued to provide funds with which to
(i) pay a portion of the costs of acquisition of certain condominium units to provide city office space near City Hall (City
Hall Annex) in lieu of the City Hall Annex lease and (ii) to partially advance refund the 1998 Limited Tax General
Obligation bonds. The 1998 Limited General Obligation bonds were issued for construction of a library to be owned
and operated by the King County Rural Library District.
The City advance refunded the 1998 Limited Tax General Obligation bonds in 2010. The debt is considered
extinguished in an in-substance defeasance and, accordingly is not reflected in the accompanying financial statements.
The remaining balance of outstanding defeased debt as of December 31, 2016 is $270,000.
• 2010B Limited Tax General Obligation Bonds (Taxable Build America Bonds – Direct Payment) bonds were issued to
provide funds with which to pay a portion of the costs of acquisition of certain condominium units to provide city
office space near City Hall (City Hall Annex) in lieu of the City Hall Annex lease.
• 2010D Limited Tax General Obligation Bonds (Taxable Build America Bonds – Direct Payment) bonds were issued to
provide funds with which to pay portion of the downtown infrastructure improvements in the City’s revitalization area.
• 2016 Limited Tax General Obligation Refunding Bonds were issued for the primary purposes of (a) refunding on a
current basis the 2005 Limited Tax General Obligation Refunding Bonds of which $680,000 principal was outstanding
and (b) refunding on an advance basis the 2006A Limited Tax General Obligation Bonds of which $3,270,000 principal
was outstanding and $3,005,000 was refunded.
The 2016 Limited Tax General Obligation Refunding Bonds were issued at par on March 23, 2016 in the principal amount
of $3,867,214 bearing a fixed interest rate of 1.640%. The net proceeds of $3,820,569 (after payment of $46,645 in
issuance costs) were used to purchase United States government securities. Those securities were deposited into an
irrevocable trust with an escrow agent to (a) pay the full outstanding principal and interest on the 2005 Bonds on the
April 22, 2016 redemption date and to (b) provide for all future debt service payments on the $3,005,000 of 2006A
bonds which were refunded. The City also tendered the final remaining 2006A Bonds debt service principal payment in
the amount of $265,000 on December 1, 2016. As a result of these transactions, the 2005 and 2006A bonds are
considered to be defeased and the liability for those bonds has been removed from the City’s financial statements.
City of Auburn: 2016 CAFR Notes to the Financial Statements
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The refunding transactions reduced the City’s total debt service payments by $426,937 through the final maturity date
of December 1, 2025 and resulted in an economic gain (the difference between the present values of the debt service
payments on the old and new debt) of $395,686.
Revenue Bonds are payable from water, sewer and storm drainage utility revenues generated by those enterprise funds.
State of Washington Public Works Trust Fund Loans are a direct responsibility of the City. Auburn currently has eight
outstanding loans with a remaining total balance of $11,412,188. Six of the loans are for water and sewer construction
projects. The loans are being repaid from water and sewer fund revenues over a 20-year period that begins upon each
project completion (PWTF 1999, PWTF 2001, PWTF 2002, PWTF 2004, PWTF 2006 & PWTF 2013). The other two loans are for
arterial street improvements and are being repaid from arterial street fund revenues over a 20-year period that began in
2009 upon project completion (PWTF 2008) and over a 29-year period that began in 2013 upon project completion (PWTF
2012).
Compensated Absences are paid by those funds that have employees. These are mostly payable by the General fund and
enterprise funds.
The following schedules summarize the long-term debt transactions of the City for the year ended December 31, 2016. The
first table summarizes all debt transactions for Auburn, while the second provides detailed information on all long-term
debt. Additional schedules reflect total annual debt service requirements to maturity and the reconciliation of debt by
fund type.
Year Principal Interest Principal Interest Principal Interest Principal (1)Interest
2017 2,239,272 3,027,586 97,991 24,369 2,619,745 1,506,399 4,957,008 4,558,354
2018 2,304,062 2,939,960 103,130 19,142 2,669,745 1,451,015 5,076,937 4,410,117
2019 2,094,636 2,843,041 108,571 13,600 2,724,745 1,388,163 4,927,952 4,244,804
2020 1,969,766 2,755,227 92,127 8,270 2,602,376 1,314,199 4,664,269 4,077,696
2021 2,039,702 2,665,409 74,817 2,776 2,662,376 1,245,371 4,776,895 3,913,556
2022-2026 10,909,117 11,700,253 - - 12,866,308 4,744,075 23,775,425 16,444,328
2027-2031 11,509,750 8,457,298 - - 11,668,424 1,740,372 23,178,174 10,197,669
2032-2036 13,155,050 4,451,666 - - 1,558,504 46,870 14,713,554 4,498,536
2037-2041 6,710,650 661,964 - - 584,966 4,387 7,295,616 666,352
Totals 52,932,005$ 39,502,404$ 476,635$ 68,157$ 39,957,188$ 13,440,850$ 93,365,829$ 53,011,412$
(1)93,365,829$ Principal debt service requirements to maturity
2,879,166 Employee Leave Benefits
8,447,831 Other Post Employment Benefits
22,652,229 Pension Liability
1,313,939 Premium
128,658,994$ Long Term Liabilities 12/31/2016
Obligation Bonds Obligation Bonds/Loans Long-Term Debt
DEBT SERVICE REQUIREMENT TO MATURITY
General Capital Lease Utility Total
General
Obligation (1)Utility
Employee
Leave Benefit
Other Post
Employment
Benefits Pension Liability Premium
Due To Other
Governments Total
Long-term liabilities payable 12/31/15 35,316,570$ 37,573,847$ 2,678,746$ 7,247,623$ 18,726,785$ 1,451,248$ 24,277,650$ 127,272,469$
Added 3,867,214 820,037 2,403,213 1,850,540 3,925,444 - - 12,866,448
Retired (5,498,422) (2,326,116) (2,202,793) (650,332) - (137,309) (664,950) (11,479,922)
Long-term liabilities payable 12/31/16 33,685,362$ 36,067,768$ 2,879,166$ 8,447,831$ 22,652,229$ 1,313,939$ 23,612,700$ 128,658,994$
(1) Includes capital leases
CHANGES IN LONG-TERM LIABILITES SUMMARY
City of Auburn: 2016 CAFR Notes to the Financial Statements
79
Interest Maturity Original Principal Balance Balance Due Within
Issue Name Rates Date Amount(2) Installments 12/31/15 Additions Reductions 12/31/16 One Year
GOVERNMENTAL DEBT
General Obligation Bonds:
GO bond 2006-Golf/Cemetery (1)4.25-5.00%12/1/2025 3,275,000$ $5,000 - $395,000 3,270,000$ -$ (3,270,000)$ -$ -$
LTGO 2010A (1)2.00-4.50%12/1/2018 4,385,000 $235,000 - $720,000 780,000 - (250,000) 530,000 260,000
LTGO 2010B (1)3.27-6.24%12/1/2039 20,365,000 $535,000 - $1,240,000 19,830,000 - (545,000) 19,285,000 560,000
LTGO 2010D (1)3.27-6.19%12/1/2034 6,320,000 $220,000 - $445,000 6,100,000 - (225,000) 5,875,000 230,000
LTGO Refunding 2016 - Golf/Cemetery 1.64 -1.64%12/1/2025 3,166,930 $71,470 - $366,159 - 3,166,930 (71,470) 3,095,460 323,849
Total General Obligation Bonds 37,511,930 29,980,000 3,166,930 (4,361,470) 28,785,460 1,373,849
Capital Leases:
Auburn Avenue Theater 6.58%12/31/2021 695,504 $4,114 - $6,405 384,181 - (54,030) 330,151 57,694
John Deere Financial Excavator Lease 3.00%7/15/2020 204,710 $3,678 185,592 - (39,107) 146,484 40,297
Total Capital Leases 900,214 569,773 - (93,137) 476,635 97,991
Employee Leave Benefits:
Compensated absences 2,056,120 1,863,807 (1,686,996) 2,232,931 1,723,525
Other Post Employment Benefits:
LEOFF 1 7,247,623 1,850,540 (650,332) 8,447,831 -
Pension Liability 12,828,199 2,620,881 - 15,449,080 -
Public Works Trust Fund Loans:
PWTF 2008 0.50%7/1/2028 1,527,273 $80,383 1,044,976 - (80,383) 964,593 80,383
PWTF 2012 0.50%6/1/2041 3,284,857 $116,993 3,041,821 - (116,993) 2,924,828 116,993
Total Public Works Trust Fund Loans 4,812,130 4,086,797 - (197,376) 3,889,421 197,376
Premium Related to Debt 143,382 - (34,727) 108,655 -
Total Governmental 43,224,274$ 56,911,894$ 9,502,158$ (7,024,038)$ 59,390,013$ 3,392,741$
BUSINESS-TYPE DEBT
General Obligation Bonds
GO refunding bond 2005 (1)4.00-4.50%12/1/2019 1,375,000$ $10,000 - $190,000 680,000$ -$ (680,000)$ -$ -$
LTGO Refunding 2016 - Airport 1.64 -1.64%12/1/2019 700,284 $166,439 - $186,420 - 700,284 (166,439) 533,845 171,023
Total General Obligation Bonds 2,075,284 680,000 700,284 (846,439) 533,845 171,023
Revenue Bonds:
Utility sys refunding bonds 2005 (1)3.00-4.75%11/1/2016 2,765,000 $45,000 - $355,000 355,000 - (355,000) - -
Utility sys bonds 2010 (1)3.00-6.40%12/1/2030 21,295,000 $575,000 - $1,720,000 19,525,000 - (630,000) 18,895,000 1,030,000
Utility sys bonds 2013 (1)0.38-4.00%12/1/2032 11,415,000 $335,000 - $785,000 10,130,000 - (480,000) 9,650,000 480,000
Total Revenue Bonds 35,475,000 30,010,000 - (1,465,000) 28,545,000 1,510,000
Employee Leave Benefits:
Compensated absences 622,626 539,406 (515,797) 646,235 498,806
Pension Liability 5,898,586 1,304,563 - 7,203,149 -
Public Works Trust Fund Loans:
PWTF 1999 1.00%7/1/2019 3,465,000 $182,368 729,474 - (182,368) 547,105 182,368
PWTF 2001 0.50%7/1/2021 4,290,405 $227,086 1,362,513 - (227,086) 1,135,428 227,086
PWTF 2002 1.00%7/1/2022 641,250 $26,114 182,802 - (26,114) 156,687 26,114
PWTF 2004 0.50%7/1/2024 2,049,036 $107,844 970,596 - (107,844) 862,752 107,844
PWTF 2006 0.50%7/1/2026 3,325,000 $180,418 1,984,597 - (180,418) 1,804,180 180,418
PWTF 2013 2.00%6/1/2032 3,325,000 $137,286 2,333,865 820,037 (137,286) 3,016,615 188,538
Total Public Works Trust Fund Loans 17,095,691 7,563,847 820,037 (861,116) 7,522,767 912,368
Premium Related to Debt 1,307,866 - (102,582) 1,205,284 -
Total Proprietary 54,645,975$ 46,082,925$ 3,364,290$ (3,790,934)$ 45,656,280$ 3,092,200$
Total All Funds 97,870,249$ 102,994,819$ 12,866,448$ (10,814,972)$ 105,046,293$ 6,484,941$
(1) Subject to federal arbitrage compliance rules.
(2) The original amount is the amount authorized and issued with exception of the Utility System Bonds 2013 in which the authorized amount was $13,000,000 and the issued amount
was $11,415,000.
CHANGES IN LONG-TERM LIABILITIES
City of Auburn: 2016 CAFR Notes to the Financial Statements
80
Due to Other Governments
• SCORE Public Development Authority issued General Obligation bonds in 2009 to acquire, construct, improve, and equip a
consolidated correctional facility located in Des Moines, Washington. The city is contracted to pay 31% of the debt service of
these 30 year bonds that mature in 2039. This debt is paid from the General fund.
Revenue Bond Debt Service Coverage
The required debt service coverage for the 2013 utility revenue bonds, 2010 utility revenue bonds and the 2005 utility
revenue refunding bonds is 1.25. Debt service coverage for 2016 was 3.06. The ratio indicates the direction and degree to
which the revenue stream exists to meet the current debt burden. The ratio is calculated by dividing the net revenue
available by debt service requirements.
The restricted rate stabilization fund for the utility revenue bonds was established to minimize the effect on rates of
revenue fluctuations between years. By transferring cash into this stabilization fund, adjusted net revenue available for
debt service, as defined, would be decreased by the amount of the transfer. Conversely, transfers out of the account
would increase adjusted net revenue available for debt service.
Estimated Arbitrage Rebate
The Federal Tax Reform Act of 1986 requires issuers of tax-exempt debt of over $5 million to make payments to the United
States Treasury of investment interest received at yields that exceed the issuer’s tax-exempt borrowing rates. Payments
of arbitrage rebate amounts due under these regulations must be made to the U.S. Treasury every five years. The City’s
Interest Maturity Original Principal Balance Balance Due Within
Issue Name Rates Date Amount Installments 12/31/15 Additions Reductions 12/31/16 One Year
GOVERNMENTAL DEBT:
General Obligation Bonds:
SCORE Public Development Authority 3.00-6.62%1/1/2039 26,732,850 $593,650 - $1,601,150 24,277,650 - (664,950) 23,612,700 694,400
Total General Obligation Bonds
Due Other Governments 26,732,850$ 24,277,650$ -$ (664,950)$ 23,612,700$ 694,400$
CHANGES IN LONG-TERM LIABILITIES DUE TO OTHER GOVERNMENTS
Enterprise Governmental
Funds Funds 12/31/16
Liabilities payable from restricted assets:
Revenue bonds 2,922,900$ -$ 2,922,900$
Long-term bonds payable:
General obligation bonds 533,845 28,785,460 29,319,305
Capital lease - 476,635 476,635
Revenue bonds 25,622,100 - 25,622,100
Special assessments with - - -
government commitment
Public Works Trust Fund loans 7,522,767 3,889,421 11,412,188
Due to Other Governments - 23,612,700 23,612,700
Employee leave benefits 646,235 2,232,931 2,879,166
Other Post Employment Benefits - 8,447,831 8,447,831
Pension Liability 7,203,149 15,449,080 22,652,229
Premium 1,205,284 108,655 1,313,939
Total long-term debt 45,656,280$ 83,002,713$ 128,658,994$
LONG-TERM LIABILITIES RECONCILIATION
City of Auburn: 2016 CAFR Notes to the Financial Statements
81
estimated rebatable arbitrage amount as of December 31, 2016 is $0 for its tax-exempt bond issues subject to the Tax
Reform Act issued through that date.
Note 10 – Pension Plans
The following table represents the aggregate pension amounts for all plans subject to the requirements of the GASB
Statement 68, Accounting and Financial Reporting for Pensions for the year 2016
Aggregate Pension Amounts - All Plans
Pension liabilities $ (22,652,229)
Pension assets $ 3,138,399
Deferred outflows of resources $ 5,349,787
Deferred inflows of resources $ (482,155)
Pension expense/expenditures $ 2,968,905
*Pension Assets GASB 68 & 27 equals total Net Position Statement
State Sponsored Pension Plans
Substantially all City full-time and qualifying part-time employees participate in one of the following statewide retirement
systems administered by the Washington State Department of Retirement Systems, under cost-sharing, multiple-employer
public employee defined benefit and defined contribution retirement plans. The state Legislature establishes, and amends,
laws pertaining to the creation and administration of all public retirement systems.
The Department of Retirement Systems (DRS), a department within the primary government of the State of Washington,
issues a publicly available comprehensive annual financial report (CAFR) that includes financial statements and required
supplementary information for each plan. The DRS CAFR may be obtained by writing to:
Department of Retirement Systems
Communications Unit
P.O. Box 48380
Olympia, WA 98540-8380
Or the DRS CAFR may be downloaded from the DRS website at www.drs.wa.gov.
Public Employees’ Retirement System (PERS)
PERS members include elected officials; state employees; employees of the Supreme, Appeals and Superior Courts;
employees of the legislature; employees of district and municipal courts; employees of local governments; and higher
education employees not participating in higher education retirement programs. PERS is comprised of three separate
pension plans for membership purposes. PERS plans 1 and 2 are defined benefit plans, and PERS plan 3 is a defined benefit
plan with a defined contribution component.
PERS Plan 1 provides retirement, disability and death benefits. Retirement benefits are determined as two percent of the
member’s average final compensation (AFC) times the member’s years of service. The AFC is the average of the member’s
24 highest consecutive service months. Members are eligible for retirement from active status at any age with at least 30
years of service, at age 55 with at least 25 years of service, or at age 60 with at least five years of service. Members retiring
from active status prior to the age of 65 may receive actuarially reduced benefits. Retirement benefits are actuarially
reduced to reflect the choice of a survivor benefit. Other benefits include duty and non-duty disability payments, an
optional cost-of-living adjustment (COLA), and a one-time duty-related death benefit, if found eligible by the Department
of Labor and Industries. PERS 1 members were vested after the completion of five years of eligible service. The plan was
closed to new entrants on September 30, 1977.
City of Auburn: 2016 CAFR Notes to the Financial Statements
82
Contributions
The PERS Plan 1 member contribution rate is established by State statute at 6 percent. The employer contribution rate is
developed by the Office of the State Actuary and includes an administrative expense component that is currently set at
0.18 percent. Each biennium, the state Pension Funding Council adopts Plan 1 employer contribution rates. The PERS Plan 1
required contribution rates (expressed as a percentage of covered payroll) for 2016 were as follows:
PERS Plan 1
Actual Contribution Rates: Employer Employee*
PERS Plan 1 6.23% 6.00%
PERS Plan 1 UAAL 4.77% 6.00%
Administrative Fee 0.18%
Total 11.18% 6.00%
* For employees participating in JBM, the contribution rate was 12.26%.
PERS Plan 2/3 provides retirement, disability and death benefits. Retirement benefits are determined as two percent of the
member’s average final compensation (AFC) times the member’s years of service for Plan 2 and 1 percent of AFC for Plan 3.
The AFC is the average of the member’s 60 highest-paid consecutive service months. There is no cap on years of service
credit. Members are eligible for retirement with a full benefit at 65 with at least five years of service credit. Retirement
before age 65 is considered an early retirement. PERS Plan 2/3 members who have at least 20 years of service credit and
are 55 years of age or older, are eligible for early retirement with a benefit that is reduced by a factor that varies according
to age for each year before age 65. PERS Plan 2/3 members who have 30 or more years of service credit and are at least 55
years old can retire under one of two provisions:
• With a benefit that is reduced by three percent for each year before age 65; or
• With a benefit that has a smaller (or no) reduction (depending on age) that imposes stricter return-to-work rules.
PERS Plan 2/3 members hired on or after May 1, 2013 have the option to retire early by accepting a reduction of five percent
for each year of retirement before age 65. This option is available only to those who are age 55 or older and have at least
30 years of service credit. PERS Plan 2/3 retirement benefits are also actuarially reduced to reflect the choice of a survivor
benefit. Other PERS Plan 2/3 benefits include duty and non-duty disability payments, a cost-of-living allowance (based on
the CPI), capped at three percent annually and a one-time duty related death benefit, if found eligible by the Department
of Labor and Industries. PERS 2 members are vested after completing five years of eligible service. Plan 3 members are
vested in the defined benefit portion of their plan after ten years of service; or after five years of service if 12 months of
that service are earned after age 44.
PERS Plan 3 defined contribution benefits are totally dependent on employee contributions and investment earnings on
those contributions. PERS Plan 3 members choose their contribution rate upon joining membership and have a chance to
change rates upon changing employers. As established by statute, Plan 3 required defined contribution rates are set at a
minimum of 5 percent and escalate to 15 percent with a choice of six options. Employers do not contribute to the defined
contribution benefits. PERS Plan 3 members are immediately vested in the defined contribution portion of their plan.
Contributions
The PERS Plan 2/3 employer and employee contribution rates are developed by the Office of the State Actuary to fully fund
Plan 2 and the defined benefit portion of Plan 3. The Plan 2/3 employer rates include a component to address the PERS
Plan 1 UAAL and an administrative expense that is currently set at 0.18 percent. Each biennium, the state Pension Funding
Council adopts Plan 2 employer and employee contribution rates and Plan 3 contribution rates. The PERS Plan 2/3 required
contribution rates (expressed as a percentage of covered payroll) for 2016 were as follows:
City of Auburn: 2016 CAFR Notes to the Financial Statements
83
PERS Plan 2/3
Actual Contribution Rates: Employer 2/3 Employee 2*
PERS Plan 2/3 6.23% 6.12%
PERS Plan 1 UAAL 4.77%
Administrative Fee 0.18%
Employee PERS Plan 3 varies
Total 11.18% 6.12%
* For employees participating in JBM, the contribution rate was 15.30%
The City’s actual PERS plan contributions were $1,132,885 to PERS Plan 1 and $1,495,562 to PERS Plan 2/3 for the year ended
December 31, 2016.
Law Enforcement Officers’ and Fire Fighters’ Retirement System (LEOFF)
LEOFF membership includes all full-time, fully compensated, local law enforcement commissioned officers, firefighters, and
as of July 24, 2005, emergency medical technicians. LEOFF is comprised of two separate defined benefit plans.
LEOFF Plan 1 provides retirement, disability and death benefits. Retirement benefits are determined per year of service
calculated as a percent of final average salary (FAS) as follows:
• 20+ years of service – 2.0% of FAS
• 10-19 years of service – 1.5% of FAS
• 5-9 years of service – 1% of FAS
The FAS is the basic monthly salary received at the time of retirement, provided a member has held the same position or
rank for 12 months preceding the date of retirement. Otherwise, it is the average of the highest consecutive 24 months’
salary within the last ten years of service. Members are eligible for retirement with five years of service at the age of 50.
Other benefits include duty and non-duty disability payments, a cost-of living adjustment (COLA), and a one-time duty-
related death benefit, if found eligible by the Department of Labor and Industries. LEOFF 1 members were vested after the
completion of five years of eligible service. The plan was closed to new entrants on September 30, 1977.
Contributions
Starting on July 1, 2000, LEOFF Plan 1 employers and employees contribute zero percent, as long as the plan remains fully
funded. The LEOFF Plan I had no required employer or employee contributions for fiscal year 2016. Employers paid only
the administrative expense of 0.18 percent of covered payroll.
LEOFF Plan 2 provides retirement, disability and death benefits. Retirement benefits are determined as two percent of the
final average salary (FAS) per year of service (the FAS is based on the highest consecutive 60 months). Members are
eligible for retirement with a full benefit at 53 with at least five years of service credit. Members who retire prior to the age
of 53 receive reduced benefits. If the member has at least 20 years of service and is age 50, the reduction is three percent
for each year prior to age 53. Otherwise, the benefits are actuarially reduced for each year prior to age 53. LEOFF 2
retirement benefits are also actuarially reduced to reflect the choice of a survivor benefit. Other benefits include duty and
non-duty disability payments, a cost-of-living allowance (based on the CPI), capped at three percent annually and a one-
time duty-related death benefit, if found eligible by the Department of Labor and Industries. LEOFF 2 members are vested
after the completion of five years of eligible service.
Contributions
The LEOFF Plan 2 employer and employee contribution rates are developed by the Office of the State Actuary to fully fund
Plan 2. The employer rate included an administrative expense component set at 0.18 percent. Plan 2 employers and
City of Auburn: 2016 CAFR Notes to the Financial Statements
84
employees are required to pay at the level adopted by the LEOFF Plan 2 Retirement Board. The LEOFF Plan 2 required
contribution rates (expressed as a percentage of covered payroll) for 2016 were as follows:
LEOFF Plan 2
Actual Contribution Rates: Employer Employee
State and local governments 5.05% 8.41%
Administrative Fee 0.18%
Total 5.23% 8.41%
Ports and Universities 8.41% 8.41%
Administrative Fee 0.18%
Total 8.59% 8.41%
The City’s actual contributions to the plan were $594,665 for the year ended December 31, 2016.
The Legislature, by means of a special funding arrangement, appropriates money from the state General Fund to
supplement the current service liability and fund the prior service costs of Plan 2 in accordance with the recommendations
of the Pension Funding Council and the LEOFF Plan 2 Retirement Board. This special funding situation is not mandated by
the state constitution and could be changed by statute. For the state fiscal year ending June 30, 2016, the state
contributed $60,375,158 to LEOFF Plan 2. The amount recognized by the City as its proportionate share of this amount is
$358,709.
Actuarial Assumptions
The total pension liability (TPL) for each of the DRS plans was determined using the most recent actuarial valuation
completed in 2016 with a valuation date of June 30, 2015. The actuarial assumptions used in the valuation were based on
the results of the Office of the State Actuary’s (OSA) 2007-2012 Experience Study.
Additional assumptions for subsequent events and law changes are current as of the 2015 actuarial valuation report. The
TPL was calculated as of the valuation date and rolled forward to the measurement date of June 30, 2016. Plan liabilities
were rolled forward from June 30, 2015, to June 30, 2016, reflecting each plan’s normal cost (using the entry-age cost
method), assumed interest and actual benefit payments.
• Inflation: 3.0% total economic inflation; 3.75% salary inflation
• Salary increases: In addition to the base 3.75% salary inflation assumption, salaries are also expected to grow by
promotions and longevity.
• Investment rate of return: 7.5%
Mortality rates were based on the RP-2000 report’s Combined Healthy Table and Combined Disabled Table, published by
the Society of Actuaries. The OSA applied offsets to the base table and recognized future improvements in mortality by
projecting the mortality rates using 100 percent Scale BB. Mortality rates are applied on a generational basis; meaning,
each member is assumed to receive additional mortality improvements in each future year throughout his or her lifetime.
There were minor changes in methods and assumptions since the last valuation.
• For all systems, except LEOFF Plan 2, the assumed valuation interest rate was lowered from 7.8% to 7.7%. Assumed
administrative factors were updated.
• Valuation software was corrected on how the nonduty disability benefits for LEOFF Plan 2 active members is
calculated.
• New LEOFF Plan 2 benefit definitions were added within the OSA valuation software to model legislation signed
into law during the 2015 legislative session.
City of Auburn: 2016 CAFR Notes to the Financial Statements
85
Discount Rate
The discount rate used to measure the total pension liability for all DRS plans was 7.5 percent.
To determine that rate, an asset sufficiency test included an assumed 7.7 percent long-term discount rate to determine
funding liabilities for calculating future contribution rate requirements. (All plans use 7.7 percent except LEOFF 2, which
has assumed 7.5 percent). Consistent with the long-term expected rate of return, a 7.5 percent future investment rate of
return on invested assets was assumed for the test. Contributions from plan members and employers are assumed to
continue being made at contractually required rates (including PERS 2/3, PSERS 2, SERS 2/3, and TRS 2/3 employers, whose
rates include a component for the PERS 1, and TRS 1 plan liabilities). Based on these assumptions, the pension plans’
fiduciary net position was projected to be available to make all projected future benefit payments of current plan
members. Therefore, the long-term expected rate of return of 7.5 percent was used to determine the total liability.
Long-Term Expected Rate of Return
The long-term expected rate of return on the DRS pension plan investments of 7.5 percent was determined using a
building-block-method. The Washington State Investment Board (WSIB) used a best estimate of expected future rates of
return (expected returns, net of pension plan investment expense, including inflation) to develop each major asset class.
Those expected returns make up one component of WSIB’s capital market assumptions. The WSIB uses the capital market
assumptions and their target asset allocation to simulate future investment returns at various future times. The long-term
expected rate of return of 7.5 percent approximately equals the median of the simulated investment returns over a 50-year
time horizon.
Estimated Rates of Return by Asset Class
Best estimates of arithmetic real rates of return for each major asset class included in the pension plan’s target asset
allocation as of June 30, 2016, are summarized in the table below. The inflation component used to create the table is 2.2
percent and represents the WSIB’s most recent long-term estimate of broad economic inflation.
Asset Class
Target Allocation
% Long-Term Expected Real
Rate of Return Arithmetic
Fixed Income 20% 1.70%
Tangible Assets 5% 4.40%
Real Estate 15% 5.80%
Global Equity 37% 6.60%
Private Equity 23% 9.60%
100%
Sensitivity of NPL
The table below presents the City’s proportionate share of the net pension liability calculated using the discount rate of 7.5
percent, as well as what the City’s proportionate share of the net pension liability would be if it were calculated using a
discount rate that is 1-percentage point lower (6.5 percent) or 1-percentage point higher (8.5 percent) than the current
rate.
1% Decrease
(6.5%)
Current Discount Rate
(7.5%)
1% Increase
(8.5%)
PERS 1 $ 12,575,902 $ 10,428,649 $ 8,580,806
PERS 2/3 22,505,809 12,223,580 (6,363,079)
LEOFF 1 (621,655) (1,046,503) (1,409,644)
LEOFF 2 $ 5,866,254 $ (2,091,896) $ (8,090,031)
City of Auburn: 2016 CAFR Notes to the Financial Statements
86
Pension Plan Fiduciary Net Position
Detailed information about the State’s pension plans’ fiduciary net position is available in the separately issued DRS
financial report.
Pension Liabilities (Assets), Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources
Related to Pensions
At June 30, 2016, the City reported a total pension liability of $19,513,830 for its proportionate share of the net pension
liabilities as follows:
Liability (Asset)
PERS 1 $ 10,428,649
PERS 2/3 12,223,580
LEOFF 1 (1,046,503)
LEOFF 2 $ (2,091,896)
The amount of the asset reported above for LEOFF Plan 2 reflects a reduction for State pension support provided to the
City. The amount recognized by the City as its proportionate share of the net pension asset, the related State support, and
the total portion of the net pension asset that was associated with the City were as follows:
Asset
LEOFF 2 – employer’s proportionate share $ (2,091,896)
LEOFF 2 – State’s proportionate share of the net
pension asset associated with the employer
(1,363,764)
TOTAL $ (3,455,660)
At June 30, the City’s proportionate share of the collective net pension liabilities was as follows:
Proportionate
Share 6/30/14
Proportionate Share
6/30/15
Change in
Proportion
PERS 1 0.192878% 0.194185% 0.001307%
PERS 2/3 0.241739% 0.242776% 0.001037%
LEOFF 1 0.103718% 0.101574% (0.002144)%
LEOFF 2 0.354511% 0.359661% 0.00515%
Employer contribution transmittals received and processed by the DRS for the fiscal year ended June 30 are used as the
basis for determining each employer’s proportionate share of the collective pension amounts reported by the DRS in the
Schedules of Employer and Nonemployer Allocations for all plans except LEOFF 1.
LEOFF Plan 1 allocation percentages are based on the total historical employer contributions to LEOFF 1 from 1971 through
2000 and the retirement benefit payments in fiscal year 2016. Historical data was obtained from a 2011 study by the Office
of the State Actuary (OSA). In fiscal year 2016, the state of Washington contributed 87.12 percent of LEOFF 1 employer
contributions and all other employers contributed the remaining 12.88 percent of employer contributions. LEOFF 1 is fully
funded and no further employer contributions have been required since June 2000. If the plan becomes underfunded,
funding of the remaining liability will require new legislation. The allocation method the plan chose reflects the projected
long-term contribution effort based on historical data.
In fiscal year 2016, the state of Washington contributed 39.46 percent of LEOFF 2 employer contributions pursuant to RCW
41.26.725 and all other employers contributed the remaining 60.54 percent of employer contributions.
City of Auburn: 2016 CAFR Notes to the Financial Statements
87
The collective net pension liability (asset) was measured as of June 30, 2016, and the actuarial valuation date on which the
total pension liability (asset) is based was as of June 30, 2015, with update procedures used to roll forward the total
pension liability to the measurement date.
Pension Expense
For the year ended December 31, 2016, the City recognized pension expense as follows:
Pension Expense
PERS 1 $ 632,849
PERS 2/3 1,759,528
LEOFF 1 (113,877)
LEOFF 2 690,405
TOTAL $ 2,968,905
Deferred Outflows of Resources and Deferred Inflows of Resources
At December 31, 2016, the City reported deferred outflows of resources and deferred inflows of resources related to
pensions from the following sources:
PERS 1 Deferred Outflows
of Resources
Deferred Inflows
of Resources
Differences between expected and actual experience $ - $ -
Net difference between projected and actual
investment earnings on pension plan investments
262,577 -
Changes of assumptions - -
Changes in proportion and differences between
contributions and proportionate share of
contributions
- -
Contributions subsequent to the measurement date 570,188 -
TOTAL $ 832,765 $ -
PERS 2/3 Deferred Outflows
of Resources
Deferred Inflows
of Resources
Differences between expected and actual experience $ 650,897 $ 403,520
Net difference between projected and actual
investment earnings on pension plan investments
1,495,813 -
Changes of assumptions 126,341 -
Changes in proportion and differences between
contributions and proportionate share of
contributions
32,720 18,851
Contributions subsequent to the measurement date 752,728 -
TOTAL $ 3,058,499 $ 422,371
City of Auburn: 2016 CAFR Notes to the Financial Statements
88
LEOFF 1 Deferred Outflows
of Resources
Deferred Inflows
of Resources
Differences between expected and actual experience $ - $ -
Net difference between projected and actual
investment earnings on pension plan investments
106,375 -
Changes of assumptions - -
Changes in proportion and differences between
contributions and proportionate share of
contributions
- -
Contributions subsequent to the measurement date - -
TOTAL $ 106,375 $ -
LEOFF 2 Deferred Outflows
of Resources
Deferred Inflows
of Resources
Differences between expected and actual experience $ 286,646 $ -
Net difference between projected and actual
investment earnings on pension plan investments
751,702 $ -
Changes of assumptions 7,887 $ -
Changes in proportion and differences between
contributions and proportionate share of
contributions
- 59,784
Contributions subsequent to the measurement date 305,912 -
TOTAL $ 1,352,148 $ 59,784
Deferred outflows of resources related to pensions resulting from the City’s contributions subsequent to the measurement
date will be recognized as a reduction of the net pension liability in the year ended December 31, 2017. Other amounts
reported as deferred outflows and deferred inflows of resources related to pensions will be recognized in pension expense
as follows:
Year ended PERS 1 PERS 2/3 LEOFF 1 LEOFF 2
December 31
2017 (64,652)$ 10,814$ (21,983)$ (23,115)$
2018 (64,652)10,814 (21,983)(23,115)
2019 241,149 1,150,802 92,129 608,219
2020 150,732 710,970 58,212 414,732
2021 0 0 0 9,731
TOTAL 262,577$ 1,883,400$ 106,375$ 986,452$
City of Auburn: 2016 CAFR Notes to the Financial Statements
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City of Auburn Fire Relief and Pension Plan
The City is the administrator of the Firemen’s Pension Plan (Plan), which is a closed, single-employer defined benefit
pension plan that was established in conformance with RCW Chapters 41.16 and 41.18. This plan provided retirement and
disability benefits, annual cost-of-living adjustments, and death benefits to plan members and beneficiaries. Membership is
limited to firefighters employed prior to March 1, 1970 when the LEOFF retirement system was established. The City’s
obligation under the Firemen’s Pension Plan consists of paying all benefits, including payments to beneficiaries and
healthcare, for firefighters who retired prior to March 1, 1970, and excess pension and healthcare benefits of LEOFF for
covered firefighters who retired after March 1, 1970. Benefits and refunds of the defined benefit pension plan are
recognized when due and payable in accordance with the Plan. The Plan does not issue a separate financial report.
The City has determined that GASB Statement No. 67 – Financial Reporting for Pension Plans; an amendment of GASB
Statement No. 25 does not apply to the City’s single-employer Fire Relief and Pension Fund as it does not meet the criteria
applicability set by the statement as the contributions to that fund are not irrevocable. Plan assets may be used for to
cover medical expenses which are outside of the scope of the pension plan benefits. Therefore, the Fire Relief and Pension
Fund has been presented in conformance with GASB Statement No. 25 and Statement No. 50.
Under state law, the Firemen’s Pension Plan is provided an allocation of 25% of all monies received by the state from taxes
on fire insurance premiums, interest earnings, member contributions made prior to the inception of LEOFF, and City
contributions required to meet projected future pension obligations. The actuary determined as of January 1, 2015 that no
future City contributions would be required beyond future revenues from state fire insurance taxes and interest earnings.
In 2016, $76,569 was received from the state from taxes on fire insurance premiums, $10,454 was received from interest
earnings. On-behalf payments of fringe benefits and salaries for the City’s employees were recognized as revenues and
expenditures/expenses during the period. Administrative costs, such as City staff time and actuarial valuation costs are
funded from interest earnings or City contributions. The required schedule of funding progress immediately following the
notes to the financial statements presents multi-year trend information about whether the actuarial value of plan assets is
increasing or decreasing over time relative to the actuarial accrued liability for benefits.
Membership of the Firemen’s Pension Plan consisted of 13 eligible, of which 11 are receiving benefits.
Fiscal Total Annual Required Percentage Annual Percentage Net
Year Employer Contribution of ARC Pension Cost of APC Pension (Asset)
Ending Contributions*(ARC)Contributed (APC)Contributed Obligation
December 31, 2005 (144,746) (78,690) N/A (76,827) N/A (54,901)
December 31, 2006 (149,327) (78,690) N/A (77,774) N/A 16,652
December 31, 2007 17,920 (5,048) N/A (5,420) N/A (6,688)
December 31, 2008 12,167 (5,048) N/A (4,885) N/A (23,740)
December 31, 2009 37,232 (78,233) N/A (77,503) N/A (138,475)
December 31, 2010 49,049 (78,233) N/A (73,634) N/A (261,158)
December 31, 2011 43,474 21,469 202%30,859 140.88%(273,773)
December 31, 2012 48,380 21,469 225%32,156 150.00%(289,997)
December 31, 2013 52,326 70,351 74%83,024 63.00%(259,299)
December 31, 2014 297,177 70,351 422%82,715 359.00%(473,761)
December 31, 2015 55,966 47,670 117%73,004 77.00%(456,723)
December 31, 2016 63,099 47,670 132%74,516 85.00%(445,306)
*Employer Contributions for pensions are total contributions to the Fund net of disbursement from the Fund for
medical expenses under RCW 41.26.150 and administrative expenses.
GASB STATEMENT No. 27GASB STATEMENT No. 25
SCHEDULE OF EMPLOYER CONTRIBUTIONS THREE YEAR TREND INFORMATION
City of Auburn: 2016 CAFR Notes to the Financial Statements
90
The information presented in the preceding required schedules was determined as part of the actuarial valuations at the
date indicated.
Fiscal ARC at Amort.Annual Total
Year End of Interest on ARC Factor Pension Cost Employer Change in NPO (Asset)
Ending Year (1)NPO (2)Adjustment *(APC)Contributions NPO Balance (3)
12/31/2005 (78,690) (7,369) (9,232) 13.30%(76,827) (144,746) 67,919 (54,901)
12/31/2006 (78,690) (3,294) (4,210) 13.04%(77,774) (149,327) 71,553 16,652
12/31/2007 (5,048) 833 1,205 13.82%(5,420) 17,920 (23,340) (6,688)
12/31/2008 (5,048) (334) (497) 13.46%(4,885) 12,167 (17,052) (23,740)
12/31/2009 (78,233) (950) (1,680) 14.13%(77,503) 37,232 (114,735) (138,475)
12/31/2010 (78,233) (5,539) (10,138) 13.66%(73,634) 49,049 (122,683) (261,158)
12/31/2011 21,469 (10,446) (19,836) 13.17%30,859 43,474 (12,615) (273,773)
12/31/2012 21,469 (10,951) (21,638) 12.65%32,156 48,380 (16,224) (289,997)
12/31/2013 70,351 (10,875) (23,548) 12.32%83,024 52,326 30,698 (259,299)
12/31/2014 70,351 (9,724) (22,088) 11.74%82,715 297,177 (214,462) (473,761)
12/31/2015 47,670 (16,582) (41,916) 11.30%73,004 55,966 17,038 (456,723)
12/31/2016 47,670 (15,985) (42,831) 10.66%74,516 63,099 11,417 (445,306)
(1) A change in consulting actuaries resulted in a recommended change in the actuarial methods and assumptions.
(2) 7% interest rate was used for years prior to January 1, 2003-2004; 6% 2005-2006; 5% 2007-2008; 4% 2011-2012,
3.75% 2013, 3.5% 2014 - 2016
Statement of Net Position prior to 2010.
* Based on 30-year level-dollar closed amortization as of January 1, 1999.
** Assumed amounts will be replaced at year end with actual amounts.
(3) The Net Pension Obligation (NPO) balance is reflected as part of Deferred Charges on the Government-wide
GASB STATEMENT No. 27
Annual Development of Pension Cost
Valuation date:
Actuarial cost method:
Amortization method:
Remaining amortization period:
Asset valuation method:
Actuarial Valuation Info:
Fair market value
January 1, 2017
Entry age normal
Level dollar amount
12 years
30-year, closed as of January 1, 1999
Inflation rate:2.25%
Investment rate of return:3.50%
Projected salary increases:3.25%
Cost-of living adjustments:Based upon salary increase assumption
when appropriate, for FRF benefits
Actuarial Assumptions
City of Auburn: 2016 CAFR Notes to the Financial Statements
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NOTE 11 – OTHER POST-EMPLOYMENT BENEFITS
In 2008, the city implemented GASB Statement 45, Accounting and Financial Reporting by Employers for Post Employment
Benefits Other Than Pensions.
Plan Description
The city is the administrator of the LEOFF 1 employees plan covering lifetime medical care. This plan is a defined benefit
healthcare plan, other post employment benefit plan (OPEB).
The city is required to pay post employment benefits in accordance with Revised Code of Washington (RCW) Chapter 41.16,
all medical and long term care as long as a disability exists are covered for any active firefighter hired prior to March 1, 1970.
For any retired firefighter hired prior to March 1, 1970, medical and long term care are covered at the discretion of the
Retirement Board. Members retired prior to 1961 for reasons other than duty disability are not eligible for medical benefits
during retirement.
In 1970, LEOFF was established by the Legislature under RCW Chapter 41.26. LEOFF members who joined the system by
September 30, 1977 are Plan 1 members. For Plan 1 members, the city is required to pay all healthcare expenses incurred by
LEOFF 1 retirees. The City’s cost is reduced by any amounts retirees receive from Medicare or other health plans.
Funding Policy
The funding policy is based upon the pay-as-you-go financing requirements paid out of the General fund.
Membership
As of December 31, 2016, there was 1 active member and 51 retirees meeting the eligibility requirements of a LEOFF 1
member. This is considered a closed group with no new members. The one active member is employed by the Valley
Regional Fire Authority (VRFA) which is a separate governmental entity and the City is billed annually for their medical
costs.
Annual OPEB Cost and Net OPEB Obligation
The City’s annual other post employment benefit (OPEB) cost is calculated based upon the annual required contribution
(ARC), an amount actuarially determined in accordance with the parameters of GASB Statement 45. The ARC represents a
level of funding that, if paid on an ongoing basis, is projected to cover the normal cost each year and amortize any
unfunded actuarial liabilities over a period of 21 years as of January 1, 2008. The following table shows the components of
the City’s annual OPEB cost for the year, the amount actually contributed to the plan and changes in the City’s net OPEB for
LEOFF.
Fiscal Year Ending
Annual Required Contribution (ARC)12/31/2014 12/31/2015 12/31/2016
1. Annual Normal Costs at beginning of year 45,656$ 45,656$ 45,656$
2. Amortization of UAAL at beginning of year 2,168,028 2,168,028 2,168,028
3. Interest to end of year 71,945 71,945 71,945
4. ARC at end of year 2,285,629$ 2,285,629$ 2,285,629$
5. Interest on Net OPEB Obligation 161,461 201,873 235,548
6. Adjustment to ARC 410,380 541,686 670,637
7. Annual OPEB Cost 2,036,710$ 1,945,816$ 1,850,540$
8. Employer Contributions 793,286 909,657 650,332
9. Change in Net OPEB Obligation 1,243,424 1,036,159 1,200,208
10. Net OPEB Obligation at beginning of year 4,968,040 6,211,464 7,247,623
11. Net OPEB Obligation at end of year 6,211,464$ 7,247,623$ 8,447,831$
City of Auburn: 2016 CAFR Notes to the Financial Statements
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The net OPEB obligation of $8,447,831 is included as a non-current liability on the Statement of Net Position.
The City’s annual OPEB cost, the percentage of OPEB costs contributed to the plan, and the net OPEB obligation for 2016,
2015 and 2014 are as follows:
Funded Status and Funding Progress
As of January 1, 2017, the most recent actuarial valuation date, the plan was 0% funded. The accrued liability for benefits
was $17.6 million, and the actuarial value of assets was $0, resulting in a UAAL of $17.6 million. The required schedule of
funding progress immediately following the notes to the financial statements presents multi-year trend information about
whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liability for
benefits.
Actuarial valuations involve estimates of the value of reported amounts and assumptions about the probability of
occurrence of events far into the future. Examples include assumptions about future employment, mortality, and the
healthcare cost trend. Amounts determined regarding the funded status of the plan and the annual required contributions
of the employer are subject to continual revision as actual results are compared with past expectations and new estimates
are made about the future.
Actuarial Methods and Assumptions
Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by the
employer and the plan members) and include the types of benefits provided at the time of each valuation. The actuarial
methods and assumptions used include techniques that are designed to reduce the effects of short-term volatility in
actuarial accrued liabilities, consistent with the long-term perspective of the calculations.
In the January 1, 2017 actuarial valuation, the entry age normal actuarial cost method was used. The actuarial assumptions
used included a 3.5% discount rate, which is based upon the long-term investment yield on the investments that are
expected to be used to finance the payment of benefits. The medical (healthcare) trend rate of 7.9% for pre-65 retirees and
7.4% for post-65 retirees is assumed and the inflation rate includes the dental inflation rate of 5.0% and long term care
inflation rate of 4.5%.
The UAAL is being amortized on a closed basis at the assumed discount rate using the level dollar amortization method.
The remaining amortization period at January 1, 2017 was 12 years.
NOTE 12 – ASSOCIATION OF WASHINGTON CITIES EMPLOYEE BENEFIT TRUST (“Trust”)
Trust Description
The City is a member of the Association of Washington Cities Employee Benefit Trust Health Care Program (AWC Trust
HCP). Chapter 48.62 RCW provides that two or more local government entities may, by Interlocal agreement under
Chapter 39.34 RCW, form together or join a pool or organization for the joint purchasing of insurance, and/or joint self-
insurance, to the same extent that they may individually purchase insurance, or self-insure.
Contributions as a
Annual Percentage of Net OPEB
Fiscal Year Ending OPEB Cost Annual OPEB Cost Obligation
December 31, 2016 1,850,540$ 35%8,447,831$
December 31, 2015 1,945,816 47%7,247,623
December 31, 2014 2,036,710 39%6,211,464
City of Auburn: 2016 CAFR Notes to the Financial Statements
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An agreement to form a pooling arrangement was made pursuant to the provisions of Chapter 39.34 RCW, the Interlocal
Cooperation Act. The AWC Trust HCP was formed on January 1, 2014 when participating cities, towns, and non-city entities
of the AWC Employee Benefit Trust in the State of Washington joined together by signing an Interlocal Governmental
Agreement to jointly self-insure certain health benefit plans and programs for participating employees, their covered
dependents and other beneficiaries through a designated account within the Trust.
As of December 31, 2016, 258 cities/towns/non-city entities participate in the AWC Trust HCP.
The AWC Trust HCP allows members to establish a program of joint insurance and provides health and welfare services to
all participating members. The AWC Trust HCP pools claims without regard to individual member experience. The pool is
actuarially rated each year with the assumption of projected claims run-out for all current members. The AWC Trust HCP
includes medical, dental and vision insurance through the following carriers: Group Health Cooperative/Group Health
Options, Inc., Regence BlueShield, Asuris Northwest Health, Delta Dental of Washington, and Vision Service Plan. Eligible
members are cities and towns within the state of Washington. Non-City Entities (public agency, public corporation,
intergovernmental agency, or political subdivision within the state of Washington) are eligible to apply for coverage into
the AWC Trust HCP, submitting application to the Board of Trustees for review as required in the Trust Agreement.
Participating employers pay monthly premiums to the AWC Trust HCP. The AWC Trust HCP is responsible for payment of all
covered claims. In 2016, the AWC Trust HCP purchased stop loss insurance for Regence/Asuris plans at an Individual Stop
Loss (ISL) of $1.5 million through Life Map, and Group Health ISL at $750,000 through Sun Life. The aggregate policy is for
200% of expected medical claims.
Participating employers contract to remain in the AWC HCP for a minimum of three years. Participating employers with
over 250 employees must provide written notice of termination of all coverage a minimum of 12 months in advance of the
termination date, and participating employers with under 250 employees must provide written notice of termination of all
coverage a minimum of 6 months in advance of termination date. When all coverage is being terminated, termination will
only occur on December 31. Participating employers terminating a group or line of coverage must notify the HCP a
minimum of 60 days prior to termination. A participating employer’s termination will not obligate that member to past
debts, or further contributions to the HCP. Similarly, the terminating member forfeits all rights and interest to the HCP
Account.
The operations of the Health Care Program are managed by the Board of Trustees or its delegates. The Board of Trustees is
comprised of four regionally elected officials from Trust member cities or towns, the Employee Benefit Advisory
Committee Chair and Vice Chair, and two appointed individuals from the AWC Board of Directors, who are from Trust
member cities or towns. The Trustees or its appointed delegates review and analyze Health Care Program related matters
and make operational decisions regarding premium contributions, reserves, plan options and benefits in compliance with
Chapter 48.62 RCW.
The Board of Trustees has decision authority consistent with the Trust Agreement, Health Care Program policies, Chapter
48.62 RCW and Chapter 200-110-WAC.
The accounting records of the Trust HCP are maintained in accordance with methods prescribed by the State Auditor’s
office under the authority of Chapter 43.09 RCW. The Trust HCP also follows applicable accounting standards established
by the Governmental Accounting Standards Board (“GASB”). Year-end financial reporting is done on an accrual basis and
submitted to the Office of the State Auditor as required by Chapter 200-110 WAC. The audit report for the AWC Trust HCP is
available from the Washington State Auditor’s office.
City of Auburn: 2016 CAFR Notes to the Financial Statements
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NOTE 13 – CONSTRUCTION COMMITMENTS
At December 31, 2016, the City had the following contractual obligations on construction projects:
SCHEDULE OF OUTSTANDING CONSTRUCTION OBLIGATIONS
As of December 31, 2016
Amount Outstanding
Traffic projects 339,000$
Street projects 9,408,991
Utilities projects 4,784,101
Other projects 331,676
Total commitments 14,863,767$
NOTE 14 – CEMETERY ENDOWED CARE FUND
The City maintains one permanent fund known as the cemetery endowed care fund. Paid into this fund is 10% of the base,
pre-tax sales price of each grave, niche or crypt. This fund is irreducible in principal and no part of the income of this fund
shall ever be used for purposes other than those specified upon the creation of the fund.
RCW 68.44.020 restricts the use of endowment net appreciation to endowment care “stipulated in the instrument by
which the fund was established”. For the City, the instrument that established the fund is Auburn City Code section
3.04.080, and section 3.040.120 governs the use of the fund.
ACC 3.04.120 restricts net interest or income from investments to the care of the lots and in the improvement or
embellishment of the cemetery or the erection or preservation of any buildings or structures, fences or walks, or for the
repair, preservation, erection or renewal of any tomb, monument, grave, stone, fence, railing or other erection in or
around the cemetery. The funds may also be used for planting and cultivating trees, shrubs, flowers or plants in or around
the cemetery. All expenditures of income from the fund must first be authorized by the City Council.
For 2016, of the $7,193 net appreciation on investments, all was available for expenditures. Amounts that are available for
expenditure are reflected as assigned fund balance.
NOTE 15 – JOINT VENTURES / RELATED PARTY
Valley Communications Center
The “Valley Communications Center” was established August 20, 1976, when an Interlocal Agreement was entered into by
four participating municipal corporations: Renton, Kent, Auburn and Tukwila. The provisions and terms of the “Interlocal
Cooperation Act”, pursuant to RCW 39.34, sanction the agreement. The initial duration of the agreement was five years
and thereafter is automatically extended for consecutive two-year periods, unless terminated by one or more of the
participating cities. Any such termination must be in writing and served upon the other cities on or before July 1 in any one
year and such termination shall then become effective on the last day of such year.
On August 4, 1999 the Administration Board of Valley Communications Center voted to include the City of Federal Way as a
full participating member city as of January 1, 2000. The five participating municipal corporations that include the cities of
Renton, Kent, Auburn, Tukwila, and Federal Way on April 17, 2000 entered into a new Interlocal Agreement, pursuant to
RCW 39.34, et seq. This agreement reaffirmed Valley Communications Center as a governmental administration agency
pursuant to RCW 39.34.030 (3) (b).
City of Auburn: 2016 CAFR Notes to the Financial Statements
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The purpose of the joint operation, hereafter referred to as Valley Com, is to provide improved consolidated emergency
communications (dispatch) services for police, fire and medical aid to the five participating cities and to the several
subscribing agencies, which include King County Fire Districts #2, #20, #40, #43, #44, #47, Black Diamond Fire Department,
Vashon Island Fire Department, City of Pacific Police and Fire Departments, City of Algona Police Department, City of Black
Diamond Police Department, City of Des Moines Police Department, SeaTac Fire Department, North Highline Fire
Department, and King County EMS Units. In 1988, King County Fire District #1 was annexed to the City of Tukwila. A
separate agreement between Valley Com and the subscribing agencies has been executed, which set forth condition of
services and rates charged.
The participating cities provide the majority of revenues to Valley Com. The method of allocating revenue source was
changed in 1990 to a basis of prior year’s calls with actual first and second quarter and estimated third and fourth quarter
calls. The allocation of prorated financial participation among the five participating cities is the percentage of estimated
dispatched calls attributed to each jurisdiction compared to the total actual and estimated dispatched calls, for the period
for January 1 through December 31. The percentages are applied to the current approved budget, less revenue from
subscribing agencies and all other sources.
The 2016 cost distribution for the five participating cities is as follows:
* Distribution of current year net income is based on these budgeted percentages.
Valley Com is served by an Administration Board composed of the Mayors or designated representatives from the five
participating cities of Renton, Kent, Auburn, Tukwila and Federal Way. The Administration Board is responsible for the
following functions: 1) Budget review and recommendation to the legislative bodies of the participating cities, and budget
adoption after each legislative body has approved the required financial participation for the ensuing year; 2) Approval of
appointment and/or discharge of the Director; 3) Approval of personnel policy and final decisions on all major policy
changes; 4) Review and approval of all contracts.
In addition, an Operations Board provides direction and consists of two members of each participating City’s public safety
departments, including the heads of such departments or their designees. The Operations Board performs the following
functions: 1) Oversees the operation of Valley Com, advises and makes recommendations to the Administration Board; 2)
Makes recommendations on Director selection; 3) Presents proposed policies and budget to the Administration Board; 4)
Approves disbursement of funds by the Director.
The Director presents a proposed budget to the Operations Board on or before August 15 of each year. Said budget is then
presented to the Administration Board by September 1 of each year. The Administration Board can make changes to the
proposed Valley Com budget as it finds necessary, but final approval falls to the legislative body of each participating city in
accordance with the provisions of the Interlocal Agreement.
In August 1993, Valley Com entered into an Interlocal Cooperation Agreement, pursuant to Chapter 39.34 RCW, with the
sub-regions of King County, Seattle and Eastside Public Safety Communications Agency (EPSCA). This agreement governs
Dispatchable Percent of
Calls Total *
Kent 114,769 26.81%
Renton 86,799 20.28%
Auburn 96,406 22.52%
Tukwila 37,375 8.73%
Federal Way 92,657 21.66%
Total 428,006 100.00%
City of Auburn: 2016 CAFR Notes to the Financial Statements
96
the development, acquisition and installation of the 800 MHz emergency radio communications system (system) funded
by the $57 million King County levy.
This agreement provides that upon voluntary termination of any sub-region participation in the system, it surrenders its
radio frequencies, relinquishes its equipment and transfers any unexpended levy proceeds and association equipment
replacement reserves to another sub-region or consortium of sub-regions.
The share of equity belonging to the five participating cities is as follows:
Liabilities are the responsibility of the five participating cities in direct proportion to their equity position.
Complete audited financial statements for Valley Communications Center can be obtained from Valley Communications
Center, 27519 108th Ave SE, Kent, WA 98030, or telephone 253-372-1300.
South Correctional Entity (SCORE)
The South Correctional Entity (SCORE) consolidated correctional facility was established February 25, 2009, when an
Interlocal Agreement (the “Original Interlocal Agreement”) was entered into by seven participating municipal
governments, the “Member Cities” of Auburn, Burien, Des Moines, Federal Way, Renton, SeaTac and Tukwila, under the
authority of the “Interlocal Cooperation Act” (RCW 39.34). This “Original Interlocal Agreement” was amended and
restated October 1, 2009 and named the City of Des Moines as the “Host City” and the remaining Member Cities as “Owner
Cities”. This interlocal agreement is known as the “Formation Interlocal Agreement”. Pursuant to a separate “Host City
Agreement” dated October 1, 2009, the Host City will not enjoy the same equity position as the Owner Cities until all debts
issued are paid and the Host City fulfills all of its obligations as outlined in the Host City Agreement. Pursuant to SCORE
financial policies, all unexpected funds or reserve funds shall be distributed based on the percentage of the Member City’s
average daily population at the SCORE Facility for the last three (3) years regardless of its Owner City or Host City status.
SCORE, a governmental administrative agency pursuant to RCW 39.34.030(3), has the power to acquire, construct, own,
operate, maintain, equip, and improve a correctional facility known as the “SCORE Facility” and to provide correctional
services and functions incidental thereto, for the purpose of detaining arrestees and sentenced offenders in the
furtherance of public safety and emergencies within the jurisdiction of the Member Cities. The SCORE Facility may serve
the Member Cities and Subscribing Agencies which are in need of correctional facilities. Any agreement with a Subscribing
Agency shall be in writing and approved by SCORE as provided within the SCORE Formation Interlocal Agreement.
Financing for the acquisition, construction, equipping, and improvement of the SCORE Facility was provided by bonds
issued by the South Correctional Entity Facility Public Development Authority (the “SCORE PDA”), a public development
authority chartered by the City of Renton pursuant to RCW 35.21.730 through 35.21.755. The SCORE PDA issued $86 million
in special obligation bonds in 2009 (the “Bonds”) to construct, develop, acquire and equip the SCORE Facility. Pursuant to
the Formation Interlocal Agreement and the ordinances of each city, each Owner City (which includes the Cities of Auburn,
Burien Federal Way, Renton, SeaTac, and Tukwila) is obligated to budget for and pay its share, and only its share, of the
principal of and interest on the Bonds as the same become due and payable. Each Owner City’s obligation to pay its
portion is an irrevocable, unconditional full faith and credit obligation of such Owner City, payable from property taxes
levied within the constitutional and statutory authority provided without a vote of the electors of the Owner City on all of
Item Kent Renton Auburn Tukwila Federal Way Total
Equity Dec 31, 2015 5,538,892$ 3,944,879$ 3,853,229$ $2,139,262 2,858,305$ 18,334,567$
Current year change 775,712 586,665 651,599 252,610 626,262 2,892,848
Equity Dec 31, 2016 6,314,604$ 4,531,544$ 4,504,828$ 2,391,872$ 3,484,567$ 21,227,415$
% of equity 29.75%21.35%21.22%11.27%16.42%
% of 2016 distribution 26.81%20.28%22.52%8.73%21.65%
City of Auburn: 2016 CAFR Notes to the Financial Statements
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the taxable property within the Owner City and other sources of revenues available therefor. The following is a summary of
the debt service requirements for the Bonds:
BABs Auburn Burien Federal Way Renton SeaTac Tukwila
Year Principal Interest Subsidy Total 31%4%18%36%3%8%
2017 2,145,000$ 4,820,241$ (1,510,874)$ 5,454,367$ 1,690,854$ 218,175$ 981,786$ 1,963,572$ 163,631$ 436,349$
2018 2,240,000 4,715,979 (1,510,063) 5,445,916 1,688,234 217,837 980,265 1,960,530 163,377 435,673
2019 2,310,000 4,602,229 (1,473,568) 5,438,661 1,685,985 217,546 978,959 1,957,918 163,160 435,093
2020 2,385,000 4,484,854 (1,435,933) 5,433,921 1,684,516 217,357 978,106 1,956,212 163,018 434,714
2021 2,465,000 4,363,604 (1,397,075) 5,431,529 1,683,774 217,261 977,675 1,955,350 162,946 434,522
2022-2026 13,945,000 19,586,127 (6,994,733) 26,536,394 8,226,282 1,061,456 4,776,551 9,553,102 796,092 2,122,912
2027-2031 17,010,000 14,723,464 (5,346,730) 26,386,734 8,179,888 1,055,469 4,749,612 9,499,224 791,602 2,110,939
2032-2036 20,955,000 8,498,417 (3,217,063) 26,236,354 8,133,270 1,049,454 4,722,544 9,445,087 787,091 2,098,908
2037-2039 14,860,000 1,502,494 (697,922) 15,664,572 4,856,017 626,583 2,819,623 5,639,246 469,937 1,253,166
Totals 78,315,000$ 67,297,409$ (23,583,961)$ 122,028,448$ 37,828,820$ 4,881,138$ 21,965,121$ 43,930,241$ 3,660,854$ 9,762,276$
Summary of Debt Service Requirements
Debt Service Schedule Debt Service Allocation to Owner Cities
The City of Auburn reports its share of equity interest in the Governmental Activities column within the Government-wide
financial statements under non-current assets. The following is condensed (unaudited) financial information as of
December 31, 2016 related to SCORE:
Member City Percent of Equity 2015 Equity Balance 2016 Apportionment 2016 Equity Balance
Auburn 31.00%3,331,777$ (216,443)$ 3,115,334$
Burien 3.00%376,841 (52,239) 324,602$
Des Moines 2.00%197,267 (30,684) 166,583$
Federal Way 23.00%2,620,575 (328,310) 2,292,265$
Renton 30.00%3,222,670 (281,167) 2,941,503$
SeaTac 4.00%498,467 (64,438) 434,029$
Tukwila 7.00%788,541 (85,218) 703,323$
Grand Totals 100.00%11,036,138$ (1,058,499)$ 9,977,639$
South Correctional Entity (SCORE)
Completed financial statements for SCORE and SCORE PDA can be obtained at SCORE, 20817 17th Avenue South, Des
Moines, WA 98198.
Since the obligation to fund future joint venture-related debt is separately reported as due to other governments, the
investment in joint ventures is reported as a combination of this debt with the current reported equity in joint ventures as
follows:
Balance Additions Reductions Balance
12/31/2015 12/31/2016
Valley Communication Public Dev Auth -$ -$ -$ -$
SCORE Public Development Authority 24,277,650 - (664,950) 23,612,700
Due to Other Governments 24,277,650 - (664,950) 23,612,700
Valley Communications Center 3,853,229 651,598 - 4,504,827
South Correctional Entity (SCORE)3,331,776 - (216,442) 3,115,334
Equity Share 7,185,005 651,598 (216,442) 7,620,161
Total Investment in Joint Ventures 31,232,861$
Investment in Joint Ventures
City of Auburn: 2016 CAFR Notes to the Financial Statements
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NOTE 16 – JOINTLY GOVERNED ORGANIZATION / RELATED PARTY
Residents of the cities of Auburn, Algona and Pacific approved in the November 7, 2006 general election the creation of a
regional fire authority pursuant to RCW 52.26. The new regional fire protection service authority, called the Valley Regional
Fire Authority (VRFA), provides first responder fire and emergency medical services to residents of Auburn, Algona and
Pacific. The VRFA is a new municipal corporation, with its own Governing Board, and is legally separate from the three
cities it serves. The Governing Board of the VRFA consists of the Mayors of the three cities within the VRFA service area, as
well as two Councilmembers from each city. Membership on the Governing Board is made by appointment from the city
council of the respective member cities. Effective January 1, 2007, all personnel, assets, equipment and contractual
obligations of the former Auburn Fire Department were transferred to the VRFA. Similar transfers were made by the cities
of Algona and Pacific.
In accordance with the interlocal agreement at time of formation, each member city retained its obligation for LEOFF 1
firefighter and Fire Relief and Pension Plan obligations. During 2016 Auburn paid $8,300, for the employer’s share of active
LEOFF 1 firefighter medical premiums and benefit payments. Premium and benefit payments for retired LEOFF 1 firefighters
for 2016 were $131,690. Medical premiums and benefit payments made under the Fire Relief and Pension Plan for 2016
were $72,154.
NOTE 17 – CONTINGENCIES AND LITIGATIONS
As of December 31, 2016, a number of claims were pending against the City for damages and legal actions. While the
outcome of these actions is uncertain, no uncovered losses are anticipated at this time with these pending claims. In the
event of a liability finding against the City, it is anticipated that any potential adverse judgment against the City also would
be subject to coverage under the City’s general liability insurance.
The City participates in a number of federal and state assisted programs. These grants are subject to audit by the grantors
or their representatives. Such audits could result in requests for reimbursement to grantor agencies for expenditures
disallowed under the terms of the grants. The City’s management believes that such disallowances, if any, will be
immaterial.
NOTE 18 – RISK MANAGEMENT & INSURANCE
Risk Management
The City is exposed to various risks of loss such as: theft and damage and destruction of assets, errors and omissions,
injuries or property damage to others, employees’ health, and natural disasters. All risk financing activities are accounted
for in the Insurance internal service fund. To insure against risks of loss the City of Auburn is a member of the Washington
Cities Insurance Authority (WCIA).
Utilizing Chapter 48.62 RCW (self-insurance regulation) and Chapter 39.34 RCW (Interlocal Cooperation Act), nine cities
originally formed WCIA on January 1, 1981. WCIA was created for the purpose of providing a pooling mechanism for jointly
purchasing insurance, jointly self-insuring, and / or jointly contracting for risk management services. WCIA has a total of 168
Members.
New members initially contract for a three-year term, and thereafter automatically renew on an annual basis. A one-year
withdrawal notice is required before membership can be terminated. Termination does not relieve a former member from
its unresolved loss history incurred during membership.
Liability coverage is written on an occurrence basis, without deductibles. Coverage includes general, automobile, police,
errors or omissions, stop gap, employment practice and employee benefits liability. Limits are $4 million per occurrence in
the self-insured layer, and $16 million in limits above the self-insured layer is provided by reinsurance. Total limits are $20
City of Auburn: 2016 CAFR Notes to the Financial Statements
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million per occurrence subject to aggregate sublimits. The Board of Directors determines the limits and terms of coverage
annually.
Insurance coverage for property, automobile physical damage, fidelity, inland marine, and boiler and machinery coverage
are purchased on a group basis. Various deductibles apply by type of coverage. Property coverage is self-funded from the
members’ deductible to $750,000, for all perils other than flood and earthquake, and insured above that to $300 million per
occurrence subject to aggregates and sublimits. Automobile physical damage coverage is self-funded from the members’
deductible to $250,000 and insured above that to $100 million per occurrence subject to aggregates and sublimits.
In-house services include risk management consultation, loss control field services, and claims and litigation administration.
WCIA contracts for certain claims investigations, consultants for personnel and land use issues, insurance brokerage,
actuarial, and lobbyist services.
WCIA is fully funded by its members, who make annual assessments on a prospectively rated basis, as determined by an
outside, independent actuary. The assessment covers loss, loss adjustment, and administrative expenses. As outlined in
the interlocal, WCIA retains the right to additionally assess the membership for any funding shortfall.
An investment committee, using investment brokers, produces additional revenue by investment of WCIA’s assets in
financial instruments which comply with all State guidelines.
A Board of Directors governs WCIA, which is comprised of one designated representative from each member. The Board
elects an Executive Committee and appoints a Treasurer to provide general policy direction for the organization. The WCIA
Executive Director reports to the Executive Committee and is responsible for conducting the day to day operations of WCIA.
No settlement has exceeded insurance coverage over the past three years.
Workers’ Compensation
Title 51 RCW requires the City to ensure payment of benefits for job-related injuries and diseases through the Workers’
Compensation fund or through self-insurance. The City become self-insured for worker’s compensation in 2014.
Contributions are made from the operating funds. At December 31, 2016 fund equity was $1,064,528.
NOTE 19 – TAX ABATEMENTS
The city offers a multifamily property tax exemption within the downtown core to encourage construction of new
multifamily housing, and that the provisions of additional housing opportunities in the downtown core will assist in
achieving the goals of the city’s comprehensive plan. Under Chapter 84.14 RCW, the city provides the opportunity for a
limited, eight-year exemptions from ad valorem property taxation for a qualified new multifamily and rehabilitated
multifamily housing constructed in the downtown core and 12-year exemptions from ad valorem property taxation for
qualified new affordable multifamily and rehabilitated multifamily housing contracted in the downtown core. Abatements
are obtained through application by the property owner, including proof of improvements that have been made, and equal
100 percent of the additional property tax resulting from the increase in assessed value as a result of the improvements. If
application is approved and all requirements meet, exemption begins January 1st, of the year immediately following the
calendar year of issuance of the final certificate of tax emption. If at any time it is determined the property no longer
complies with the terms of the contract or the requirements, or the use of the property for any reason no longer qualifies
for the tax exemption, the tax exemption shall be cancelled and additional taxes, interest and penalties imposed.
The city entered into a property tax abatement agreement with Plan A Development LLC, project name Trek Apartments; a
four story building of 126 apartment units with outdoor plaza and ground parking and retail space. The final certificate of
City of Auburn: 2016 CAFR Notes to the Financial Statements
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tax exemption was issued December 3, 2015, with the eight-year ad valorem property tax exemption to start with tax year
2016. The amount of the property tax abated during the fiscal year 2016 was $34,160.
NOTE 20 – CHANGE IN ACCOUNTING PRINCIPLE
The City of Auburn implemented Governmental Accounting Standards Board (GASB) Statement 73, Accounting and
Financial Reporting for Pensions and Related Assets that are not within the Scope of GASB 68, and Amendments to Certain
Provisions of GASB 67 and 68. The city’s Fire Relief and Pension Fund is reported under GASB 25/27 and as required by
GASB Statement 73, is no longer reported as a Fiduciary Fund but accounted for in the General Fund. This change in
accounting principle resulted in an increase of beginning fund balance for governmental activities of $2,512,557.
City of Auburn: 2016 CAFR Required Supplemental Information
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REQUIRED SUPPLEMENTARY INFORMATION
Schedule of Proportionate Share of the Net Pension Liability
As of June 30, 2016
Last 10 Fiscal Years*
2015 2016
PERS 1
Employer's proportion of the net pension liability (asset) 0.192878% 0.194185%
Employer's proportionate share of the net pension liability $ 10,089,313 10,428,649
Employer's covered employee payroll $ 328,015 212,906
Employer's proportionate share of the net pension liability as a percentage
of covered employee payroll 3075.87% 4898.23%
Plan fiduciary net position as a percentage of the total pension liability 59.10% 57.03%
PERS 2/3
Employer's proportion of the net pension liability (asset) 0.241739% 0.242776%
Employer's proportionate share of the net pension liability $ 8,637,472 12,223,580
Employer's covered employee payroll $ 21,460,504 22,734,017
Employer's proportionate share of the net pension liability as a percentage
of covered employee payroll 40.25% 53.77%
Plan fiduciary net position as a percentage of the total pension liability 89.20% 85.82%
LEOFF 1
Employer's proportion of the net pension liability (asset) 0.103718% 0.101574%
Employer's proportionate share of the net pension liability $ (1,250,031) (1,046,503)
Employer's covered employee payroll $ 0 0
Employer's proportionate share of the net pension liability as a percentage
of covered employee payroll 0.00% 0.00%
Plan fiduciary net position as a percentage of the total pension liability 127.36% 123.74%
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REQUIRED SUPPLEMENTARY INFORMATION
Schedule of Proportionate Share of the Net Pension Liability
As of June 30, 2016
Last 10 Fiscal Years*
2015 2016
LEOFF 2
Employer's proportion of the net pension liability (asset) 0.354511% 0.359661%
Employer's proportionate share of the net pension liability $ (2,193,486) (2,091,896)
State's proportionate share of the net pension liability (asset) associated
with the employer $ (1,450,178) (1,363,764)
TOTAL $ (3,643,664) (3,455,660)
Employer's covered employee payroll $ 10,336,409 10,953,667
Employer's proportionate share of the net pension liability as a percentage
of covered employee payroll 0.00% 0.00%
Plan fiduciary net position as a percentage of the total pension liability 111.67% 106.04%
* Information available for 2015 & 2016 only
Note to schedule:
Significant methods and assumptions used in calculating the actuarial determined contribution are presented in Note 10.
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REQUIRED SUPPLEMENTARY INFORMATION
Schedule of Employer Contributions
As of December 31 2016
Last 10 Fiscal Years*
2015 2016
PERS 1
Statutorily or contractually required contributions $ 30,642 20,088
Contributions in relation to the statutorily or contractually required
contributions $ (30,642) (20,088)
Contribution deficiency (excess) $ 0 0
Covered employer payroll $ 306,408 179,680
Contributions as a percentage of covered employee payroll 10.00% 11.18%
PERS 2/3
Statutorily or contractually required contributions $ 2,258,109 2,608,360
Contributions in relation to the statutorily or contractually required
contributions $ (2,258,109) (2,608,360)
Contribution deficiency (excess) $ 0 0
Covered employer payroll $ 22,130,501 23,330,702
Contributions as a percentage of covered employee payroll 10.20% 11.18%
LEOFF 2
Statutorily or contractually required contributions $ 551,812 594,665
Contributions in relation to the statutorily or contractually required
contributions $ (551,812) (594,665)
Contribution deficiency (excess) $ 0 0
Covered employer payroll $ 10,553,437 11,370,216
Contributions as a percentage of covered employee payroll % 5.23% 5.23%
* Information available for 2015 & 2016 only
Note to schedule:
Significant methods and assumptions used in calculating the actuarial determined contribution are presented in Note 10.
City of Auburn: 2016 CAFR Required Supplemental Information
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Firefighter’s Pension Fund
January 1, 2017
Unfunded
Actuarial Actuarial UAAL as a
Actuarial Accrued Accrued Percentage
Actuarial Value Liabilities - Liabilities Funded Covered of Covered
Valuation Date of Assets Entry Age (UAAL) Ratio Payroll Payroll
January 1, 2005 3,160 2,172 (988) 145.00% 64 (1544%)
January 1, 2007 2,868 2,802 (66) 102.00% - N/A
January 1, 2009 2,941 1,878 (1,063) 157.00% - N/A
January 1, 2011 2,780 3,052 272 91.00% - N/A
January 1, 2013 2,552 3,387 835 75.00% - N/A
January 1, 2015 2,609 3,130 521 83.00% - N/A
January 1, 2017 2,413 3,301 888 73.00% - N/A
This plan primarily covers inactive participants. There are no current member contributions.
GASB STATEMENTS No. 25 and No. 27 SCHEDULE OF FUNDING PROGRESS
(rounded to thousands)
Annual Required Percentage
Year Ending Employer Fire Insurance Total Employer Contributions of ARC
12/31 Contributions* Premiums Contributions* (ARC) Contributions
2011 (22,901) 66,375 43,474 21,469 202%
2012 (14,825) 63,205 48,380 21,469 225%
2013 (17,710) 70,036 52,326 70,351 74%
2014 219,619 77,558 297,177 70,351 422%
2015 (19,736) 75,702 55,966 47,670 117%
2016 (13,470) 76,569 63,099 47,670 132%
* Employer contributions for pensions are total contributions t o the Fund net of disbursements
from the Fund for medical expenses under RCW 41.26.150 and administrative expenses.
GASB STATEMENT No. 25 SCHEDULE OF EMPLOYER CONTRIBUTIONS
City of Auburn: 2016 CAFR Required Supplemental Information
105
Retiree Medical and Long‐Term Care Benefits
For LEOFF 1 Employees
January 1, 2017
Unfunded
Actuarial UAAL as a
Actuarial Actuarial Accrued Percentage
Actuarial Value Accrued Liabilities Funded Covered of Covered
Valuation Date of Assets Liabilities (UAAL) Ratio Payroll Payroll
January 1, 2008 - 20,738 20,738 0% N/A N/A
January 1, 2011 - 26,482 26,482 0% N/A N/A
January 1, 2014 - 26,246 26,246 0% N/A N/A
January 1, 2017 - 17,565 17,565 0% N/A N/A
GASB STATEMENTS No. 43 and No. 45
(rounded to thousands)
SCHEDULE OF FUNDING PROGRESS
Annual Required
Year Ending Employer Contribution Percentage of
12/31 Contributions (ARC)ARC Contributed
2011 1,095,684 2,197,396 50%
2012 1,104,259 2,197,396 50%
2013 1,124,809 2,197,396 51%
2014 793,286 2,285,629 35%
2015 909,657 2,285,629 40%
2016 650,332 2,285,629 28%
* Estimated employer contributions based on expected benefit payments.
GASB STATEMENT No. 43 SCHEDULE OF EMPLOYER CONTRIBUTIONS
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City of Auburn: 2016 CAFR Fund Financial Statements and Schedules
107
NON-MAJOR GOVERNMENTAL FUNDS
The City has four types of Non-Major Governmental Funds.
Special Revenue Funds
Special revenue funds account for the proceeds of specific revenue sources and are segregated into
individual funds to ensure that expenditures are made exclusively for qualified purposes. Special
revenue funds are accounted for on a modified accrual basis. Biennial budgets are adopted with
appropriations lapsing at year-end.
Debt Service Funds
Debt service funds account for payments of principal and interest on general obligation and special
assessment long-term debt.
Capital Project Funds
Capital project funds account for the City of Auburn's financial resources used for the acquisition or
construction of major non-proprietary capital facilities.
Permanent Funds
Permanent funds are used to report resources that are legally restricted to the extent that only
earnings, and not principal, may be used for purposes that support City programs that are for the
benefit of the City or its citizens.
City of Auburn: 2016 CAFR Fund Financial Statements and Schedules
108
Total Total Total Total Total
Nonmajor Nonmajor Nonmajor Nonmajor Nonmajor
Special Revenue Debt Service Capital Projects Permanent Governmental
Funds Funds Funds Funds Funds
ASSETS:
Cash and Cash Equivalents 17,305,154$ 11,945$ 2,090,789$ 1,743,809$ 21,151,697$
Other Receivables 349,669 - - - 349,669
Special Assessments - 11,397 - - 11,397
Due From Other Governmental Units 208,225 - 20,000 - 228,225
Total Assets 17,863,048 23,342 2,110,789 1,743,809 21,740,988
LIABILITIES, DEFERRED INFLOWS AND FUND BALANCES:
Liabilities:
Current Payables 175,850 - 337,399 - 513,249
Interfund Payable (Note 5)50,000 - 400,000 - 450,000
Other Liabilities Payable 61,539 - - - 61,539
Total Liabilities 287,389 - 737,399 - 1,024,788
Deferred Inflow of Resources:
Unavailable Revenue-Special Assessments - 11,397 - - 11,397
Total Deferred Inflow of Resources - 11,397 - - 11,397
Fund Balances:
Nonspendable - - - 1,666,043 1,666,043
Restricted 11,935,664 11,945 982,900 - 12,930,509
Committed 5,421,640 - - - 5,421,640
Assigned 218,355 - 390,490 77,766 686,611
Total Fund Balances 17,575,659 11,945 1,373,390 1,743,809 20,704,803
Total Liabilities, Deferred Inflows and Fund
Balances 17,863,048$ 23,342$ 2,110,789$ 1,743,809$ 21,740,988$
December 31, 2016
City of Auburn, Washington
COMBINING BALANCE SHEET
NON-MAJOR GOVERNMENT FUNDS
City of Auburn: 2016 CAFR Fund Financial Statements and Schedules
109
Total Total Total Total Total
Nonmajor Nonmajor Nonmajor Nonmajor Nonmajor
Special Revenue Debt Service Capital Projects Permanent Governmental
REVENUES:
Taxes:
Property -$ -$ 134,494$ -$ 134,494$
Retail Sales & Use 2,292,280 240,593 - - 2,532,873
Interfund Utility 660,707 - - - 660,707
Utility 1,434,375 - - - 1,434,375
Excise 112,876 - - - 112,876
Other 61,391 - - - 61,391
Intergovernmental 579,491 492,583 1,288,587 - 2,360,661
Charges for Services 7,276,046 - 9,723 50,337 7,336,106
Special Assessments - 4,111 - - 4,111
Investment Earnings 61,137 510 6,582 7,192 75,421
Miscellaneous 286,097 1,731 43,595 - 331,423
Total Revenues 12,764,400 739,528 1,482,981 57,529 15,044,438
EXPENDITURES:
Current:
Security of Persons & Property 588,002 - - - 588,002
Transportation 2,967,436 - - - 2,967,436
Economic Environment 619,334 - - - 619,334
Cultural and Recreation - - 199,416 - 199,416
Debt Service:
Principal - 1,456,104 - - 1,456,104
Interest - 1,592,400 - - 1,592,400
Capital Outlay - - 5,934,321 - 5,934,321
Total Expenditures 4,174,772 3,048,504 6,133,737 - 13,357,013
Excess (Deficiency) of Revenues
Over (Under) Expenditures 8,589,628 (2,308,976) (4,650,756) 57,529 1,687,425
OTHER FINANCING SOURCES (USES):
Issuance of Debt - 3,128,732 - - 3,128,732
Payment to Escrow Agent - Refunded Bond - (3,005,000) - - (3,005,000)
Transfers In (Note 5)168,250 2,183,911 4,895,655 - 7,247,816
Transfers Out (Note 5)(1,842,148) - - - (1,842,148)
Total Other Financing Sources (Uses)(1,673,898) 2,307,643 4,895,655 - 5,529,400
Net Change in Fund Balances 6,915,730 (1,333) 244,899 57,529 7,216,825
Fund Balances - Beginning 10,659,929 13,278 1,128,491 1,686,280 13,487,978
Fund Balances - Ending 17,575,659$ 11,945$ 1,373,390$ 1,743,809$ 20,704,803$
City of Auburn, Washington
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
NON-MAJOR GOVERNMENT FUNDS
For the Year Ended December 31, 2016
City of Auburn: 2016 CAFR Fund Financial Statements and Schedules
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City of Auburn: 2016 CAFR Fund Financial Statements and Schedules
111
NON-MAJOR GOVERNMENTAL FUNDS
SPECIAL REVENUE FUNDS
Special revenue funds account for the proceeds of specific revenue sources and are segregated into
individual funds to ensure that expenditures are made exclusively for qualified purposes. Special
revenue funds are accounted for on a modified accrual basis. Annual budgets are adopted with
appropriations lapsing each year of the biennium. The City has eight non-major special revenue
funds.
The Local Street Fund
This fund was created when Auburn voters approved the Save Our Streets lid lift in 2004 and is used
to account for all revenues and expenditures related to this initiative.
Hotel/Motel Tax Fund
This fund was created to account for the hotel/motel taxes levied to support City tourist promotion.
Arterial Street Preservation Fund
This fund was created to repair classified arterial streets and is funded from a one percent utility tax
increase that was adopted by Council in 2008.
Drug Forfeiture Fund
Money seized and forfeited from drug activity is deposited in this fund to be used exclusively for
drug investigation and enforcement.
The Housing and Community Development Fund
Accounts for projects associated with the Community Development Block Grant program.
The Recreational Trails Fund
Created for the purpose of trail development. This is a tax-supported fund.
The Business Improvement Area Fund
Accounts for special assessments on downtown merchants for ongoing services and for
improvements made to the downtown area.
Mitigation Fees
Accounts for the receipt of contracted mitigation fees for streets and fire service.
City of Auburn: 2016 CAFR Fund Financial Statements and Schedules
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Page 1 of 2
Hotel/Arterial Housing
Local Motel Street Drug Community
Streets Tax Preservation Forfeiture Development
ASSETS:
Cash and Cash Equivalents 2,441,371$ 214,692$ 2,892,483$ 472,180$ 20,090$
Receivables:
Other Receivables - - 349,669 - -
Due From Other Governmental Units - - 64,025 8,438 135,762
Total Assets 2,441,371 214,692 3,306,177 480,618 155,852
LIABILITIES AND FUND BALANCES:
Liabilities:
Current Payables 16,644 34,546 36,546 27,166 60,948
Interfund Payable (Note 5)- - - - 50,000
Other Liabilities Payable - - - - -
Total Liabilities 16,644 34,546 36,546 27,166 110,948
Fund Balances:
Restricted - 180,146 101,328 451,507 44,904
Committed 2,263,195 - 3,158,445 - -
Assigned 161,532 - 9,858 1,945 -
Total Fund Balances 2,424,727 180,146 3,269,631 453,452 44,904
Total Liabilities and Fund Balances 2,441,371$ 214,692$ 3,306,177$ 480,618$ 155,852$
City of Auburn, Washington
COMBINING BALANCE SHEET
NON-MAJOR SPECIAL REVENUE FUNDS
December 31, 2016
City of Auburn: 2016 CAFR Fund Financial Statements and Schedules
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Page 2 of 2
Total
Business Nonmajor
Recreational Improvement Mitigation Special Revenue
Trails Area Fees Funds
49,822$ 58,472$ 11,156,044$ 17,305,154$
- - - 349,669
- - - 208,225
49,822 58,472 11,156,044 17,863,048
- - - 175,850
- - - 50,000
- - 61,539 61,539
- - 61,539 287,389
49,629 58,260 11,049,890 11,935,664
- - - 5,421,640
193 212 44,615 218,355
49,822 58,472 11,094,505 17,575,659
49,822$ 58,472$ 11,156,044$ 17,863,048$
City of Auburn: 2016 CAFR Fund Financial Statements and Schedules
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Page 1 of 2
Hotel/Arterial Housing
Local Motel Street Drug Community
Streets Tax Preservation Forfeiture Development
REVENUES:
Taxes:
Retail Sales & Use 2,292,280$ -$ -$ -$ -$
Interfund Utility - - 660,707 - -
Utility - - 1,434,375 - -
Excise - 112,876 - - -
Other - - - - -
Intergovernmental - - 101,328 13,235 457,828
Charges for Services - - - 18,877 -
Investment Earnings 11,532 897 9,858 1,945 -
Miscellaneous - - - 163,573 -
Total Revenues 2,303,812 113,773 2,206,268 197,630 457,828
EXPENDITURES:
Current:
Security of Persons and Property - - - 188,002 -
Transportation 2,109,775 - 857,661 - -
Economic Environment - 109,920 - - 457,828
Total Expenditures 2,109,775 109,920 857,661 188,002 457,828
Excess (Deficiency) of Revenues
Over (Under) Expenditures 194,037 3,853 1,348,607 9,628 -
OTHER FINANCING SOURCES (USES):
Transfers In (Note 5)150,000 - 18,250 - -
Transfers Out (Note 5)- (25,000) (41,090) - -
Total Other Financing Sources (Uses)150,000 (25,000) (22,840) - -
Net Change in Fund Balances 344,037 (21,147) 1,325,767 9,628 -
Fund Balances - Beginning 2,080,690 201,293 1,943,864 443,824 44,904
Fund Balances - Ending 2,424,727$ 180,146$ 3,269,631$ 453,452$ 44,904$
City of Auburn, Washington
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
NON-MAJOR SPECIAL REVENUE FUNDS
For the Year Ended December 31, 2016
City of Auburn: 2016 CAFR Fund Financial Statements and Schedules
115
Page 2 of 2
Total
Business Nonmajor
Recreational Improvement Mitigation Special Revenue
Trails Area Fees Funds
-$ -$ -$ 2,292,280$
- - - 660,707
- - - 1,434,375
- - - 112,876
- 61,391 - 61,391
7,100 - - 579,491
- - 7,257,169 7,276,046
193 212 36,500 61,137
- - 122,524 286,097
7,293 61,603 7,416,193 12,764,400
- - 400,000 588,002
- - - 2,967,436
- 51,586 - 619,334
- 51,586 400,000 4,174,772
7,293 10,017 7,016,193 8,589,628
- - - 168,250
- - (1,776,058) (1,842,148)
- - (1,776,058) (1,673,898)
7,293 10,017 5,240,135 6,915,730
42,529 48,455 5,854,370 10,659,929
49,822$ 58,472$ 11,094,505$ 17,575,659$
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116
Variance with
Final Final Budget
Original Adopted Actual Positive
(GAAP Basis)(GAAP Basis)Results (Negative)
REVENUES:
Taxes:
Property 1,450,000$ 1,610,000$ 2,292,280$ 682,280$
Investment Earnings 2,500 2,500 11,532 9,032
Total Revenues 1,452,500 1,612,500 2,303,812 691,312
EXPENDITURES:
Current:
Transportation 1,600,000 2,864,398 2,109,775 754,623
Total Expenditures 1,600,000 2,864,398 2,109,775 754,623
Excess (Deficiency) of Revenues
Over (Under) Expenditures (147,500) (1,251,898) 194,037 1,445,935
OTHER FINANCING SOURCES (USES):
Transfers In (Note 5)150,000 150,000 150,000 -
Total Other Financing Sources (Uses)150,000 150,000 150,000 -
Net Change in Fund Balances 2,500 (1,101,898) 344,037 1,445,935
Fund Balances - Beginning 348,568 2,080,690 2,080,690 -
Fund Balances - Ending 351,068$ 978,792$ 2,424,727$ 1,445,935$
Budget Amounts
For the Year Ended December 31, 2016
City of Auburn, Washington
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
LOCAL STREETS SPECIAL REVENUE FUND
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117
Variance with
Final Final Budget
Original Adopted Actual Positive
(GAAP Basis)(GAAP Basis)Results (Negative)
REVENUES:
Taxes:
Excise 88,800$ 110,000$ 112,876$ 2,876$
Charges for Services 6,000 - - -
Investment Earnings 140 250 897 647
Total Revenues 94,940 110,250 113,773 3,523
EXPENDITURES:
Current:
Economic Environment 86,000 202,500 109,920 92,580
Total Expenditures 86,000 202,500 109,920 92,580
Excess (Deficiency) of Revenues
Over (Under) Expenditures 8,940 (92,250) 3,853 96,103
OTHER FINANCING SOURCES (USES):
Transfers Out (Note 5)- (25,000) (25,000) -
Total Other Financing sources and Uses - (25,000) (25,000) -
Net Change in fund Balances 8,940 (117,250) (21,147) 96,103
Fund Balances - Beginning 148,031 201,293 201,293 -
Fund Balances - Ending 156,971$ 84,043$ 180,146$ 96,103$
Budget Amounts
For the Year Ended December 31, 2016
City of Auburn, Washington
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
HOTEL/MOTEL TAX SPECIAL REVENUE FUND
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118
Variance with
Final Final Budget
Original Adopted Actual Positive
(GAAP Basis)(GAAP Basis)Results (Negative)
REVENUES:
Taxes:
Interfund Utility 589,000$ 589,000$ 660,707$ 71,707$
Utility 1,483,900 1,353,900 1,434,375 80,475
Intergovernmental 1,052,900 1,053,626 101,328 (952,298)
Investment Earnings 1,500 1,500 9,858 8,358
Total Revenues 3,127,300 2,998,026 2,206,268 (791,758)
EXPENDITURES:
Current:
Transportation 2,884,378 4,594,821 857,661 3,737,160
Total Expenditures 2,884,378 4,594,821 857,661 3,737,160
Excess (Deficiency) of Revenues
Over (Under) Expenditures 242,922 (1,596,795) 1,348,607 2,945,402
OTHER FINANCING SOURCES (USES):
Transfers In (Note 5)- 150,000 18,250 (131,750)
Transfers Out (Note 5)(467,010) (401,750) (41,090) 360,660
Total Other Financing Sources (Uses)(467,010) (251,750) (22,840) 228,910
Net Change in Fund Balances (224,088) (1,848,545) 1,325,767 3,174,312
Fund Balances - Beginning 461,200 1,943,864 1,943,864 -
Fund Balances - Ending 237,112$ 95,319$ 3,269,631$ 3,174,312$
Budget Amounts
For the Year Ended December 31, 2016
City of Auburn, Washington
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
ARTERIAL STREET PRESERVATION SPECIAL REVENUE FUND
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119
Variance with
Final Final Budget
Original Adopted Actual Positive
(GAAP Basis)(GAAP Basis)Results (Negative)
REVENUES:
Taxes:
Intergovernmental 36,400$ 36,400$ 13,235$ (23,165)$
Charges for Services - - 18,877 18,877
Investment Earnings 700 700 1,945 1,245
Miscellaneous 60,000 60,000 163,573 103,573
Total Revenues 97,100 97,100 197,630 100,530
EXPENDITURES:
Current:
Security of Persons & Property 273,027 273,027 188,002 85,025
Total Expenditures 273,027 273,027 188,002 85,025
Excess (Deficiency of Revenues
Over (Under) Expenditures (175,927) (175,927) 9,628 185,555
Net Change in Fund Balances (175,927) (175,927) 9,628 185,555
Fund Balances - Beginning 298,057 443,824 443,824 -
Fund Balances - Ending 122,130$ 267,897$ 453,452$ 185,555$
Budget Amounts
For the Year Ended December 31, 2016
City of Auburn, Washington
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
DRUG FORFEITURE SPECIAL REVENUE FUND
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120
Variance with
Final Final Budget
Original Adopted Actual Positive
(GAAP Basis)(GAAP Basis)Results (Negative)
REVENUES:
Intergovernmental 450,000$ 1,165,398$ 457,828$ (707,570)$
Total Revenues 450,000 1,165,398 457,828 (707,570)
EXPENDITURES:
Current:
Economic Environment 440,000 1,155,398 457,828 697,570
Total Expenditures 440,000 1,155,398 457,828 697,570
Excess (Deficiency) of Revenues
Over (Under) Expenditures 10,000 10,000 - (10,000)
Net Change in Fund Balances 10,000 10,000 - (10,000)
Fund Balances - Beginning 37,371 44,904 44,904 -
Fund Balances - Ending 47,371$ 54,904$ 44,904$ (10,000)$
Budget Amounts
For the Year Ended December 31, 2016
City of Auburn, Washington
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
HOUSING & COMMUNITY DEVELOPMENT SPECIAL REVENUE FUND
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121
Variance with
Final Final Budget
Original Adopted Actual Positive
(GAAP Basis)(GAAP Basis)Results (Negative)
REVENUES:
TAXES:
Intergovernmental 7,100$ 7,100$ 7,100$ -$
Investment Earnings 30 30 193 163
Total Revenues 7,130 7,130 7,293 163
Excess (Deficiency) of Revenues
Over (Under) Expenditures 7,130 7,130 7,293 163
Net Change in Fund Balances 7,130 7,130 7,293 163
Fund Balances - Beginning 43,847 42,529 42,529 -
Fund Balances - Ending 50,977$ 49,659$ 49,822$ 163$
Budget Amounts
For the Year Ended December 31, 2016
City of Auburn, Washington
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
RECREATION TRAILS SPECIAL REVENUE FUND
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122
Variance with
Final Final Budget
Original Adopted Actual Positive
(GAAP Basis)(GAAP Basis)Results (Negative)
REVENUES:
Taxes:
Other 55,000$ 55,000$ 61,391$ 6,391$
Investment Earnings 60 60 212 152
Total Revenues 55,060 55,060 61,603 6,543
EXPENDITURES:
Current:
Economic Environment 55,000 55,000 51,586 3,414
Total Expenditures 55,000 55,000 51,586 3,414
Excess (Deficiency) of Revenues
Over (Under) Expenditures 60 60 10,017 9,957
Net Change in Fund Balances 60 60 10,017 9,957
Fund Balances - Beginning 41,272 48,455 48,455 -
Fund Balances - Ending 41,332$ 48,515$ 58,472$ 9,957$
Budget Amounts
For the Year Ended December 31, 2016
City of Auburn, Washington
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
BUSINESS IMPROVEMENT AREA SPECIAL REVENUE FUND
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123
Variance with
Final Final Budget
Original Adopted Actual Positive
(GAAP Basis)(GAAP Basis)Results (Negative)
REVENUES:
Investment Earnings 14,200$ 14,200$ 30,537$ 16,337$
Total Revenues 14,200 14,200 30,537 16,337
EXPENDITURES:
Excess (Deficiency) of Revenues
Over (Under) Expenditures 14,200 14,200 30,537 16,337
OTHER FINANCING SOURCES (USES):
Transfers In (Note 5)- 1,500,000 1,500,000 -
Transfers Out (Note 5)(1,917,084) (1,953,298) (805,897) 1,147,401
Total Other Financing Sources (Uses)(1,917,084) (453,298) 694,103 1,147,401
Net Change in Fund Balances (1,902,884) (439,098) 724,640 1,163,738
Fund Balances - Beginning 6,238,304 7,985,297 7,985,297 -
Fund Balances - Ending 4,335,420$ 7,546,199$ 8,709,937$ 1,163,738$
RECONCILIATION OF PERSPECTIVE DIFFERENCE BETWEEN BUDGETARY INFORMATION AND
GENERALLY ACCEPTED ACCOUNTING PRINCIPLES (GAAP):
The Cumulative Reserve Fund is combined with
the General Fund for purposes of GASB Statement 54 (8,709,937)
Fund Balance - Ending (GAAP)-$
The notes to the financial statements are an integral part of this statement.
Budget Amounts
For the Year Ended December 31, 2016
City of Auburn, Washington
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
CUMULATIVE RESERVE SPECIAL REVENUE FUND
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124
Variance with
Final Final Budget
Original Adopted Actual Positive
(GAAP Basis)(GAAP Basis)Results (Negative)
REVENUES:
TAXES:
Charges for Services 990,000$ 1,240,000$ 7,257,169$ 6,017,169$
Investment Earnings 4,890 4,890 36,500 31,610
Miscellaneous - - 122,524 122,524
Total Revenues 994,890 1,244,890 7,416,193 6,171,303
EXPENDITURES:
Current:
Security of Person & Property 50,000 400,000 400,000 -
Total Expenditures 50,000 400,000 400,000 -
Excess (Deficiency) of Revenues
Over (Under) Expenditures 944,890 844,890 7,016,193 6,171,303
OTHER FINANCING SOURCES (USES):
Transfers In (Note 5)- 400,000 - (400,000)
Transfers Out (Note 5)(1,171,827) (3,540,845) (1,776,058) 1,764,787
Total Other Financing Sources (Uses)(1,171,827) (3,140,845) (1,776,058) 1,364,787
Net Change in Fund Balances (226,937) (2,295,955) 5,240,135 7,536,090
Fund Balances - Beginning 2,614,431 5,854,370 5,854,370 -
Fund Balances - Ending 2,387,494$ 3,558,415$ 11,094,505$ 7,536,090$
Budget Amounts
For the Year Ended December 31, 2016
City of Auburn, Washington
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
MITIGATION SPECIAL REVENUE FUND
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125
NON-MAJOR GOVERNMENTAL FUNDS
DEBT SERVICE FUNDS
Debt service funds account for payments of principal and interest on general obligation and special
assessment long-term debt. The City of Auburn has two outstanding general obligation issues, and two
special assessment funds.
The 2010 A Series General Obligation Bonds (refunding portion)
Accounts for debt service on a Council-approved bond issue to partially advance refund the 1998
General Obligation Library Bonds.
The 2010 A Series (non-refunding portion) and B Series General Obligation Bonds
Accounts for debt service on a Council-approved bond issue to finance acquisition costs of certain
condominium units in the City Hall Annex.
The 2010 C Series and 2010 D Series General Obligation Bonds
Accounts for the debt service on a Council-approved bond issue to finance a portion of the downtown
infrastructure improvements in the City’s revitalization area.
The 2006 General Obligation Bonds
Accounts for the debt service on a Council-approved bond issue to finance improvements to the Auburn
Golf Course including a pro shop, clubhouse, and related facilities. In addition, the bonds were used to
construct and equip restaurant, banquet and related facilities for the restaurant located at the Auburn
Golf Course.
The L.I.D. Guarantee Fund
This fund provides financial security for outstanding L.I.D. bonds and special assessment debt.
Special Assessment Debt Fund
Accounts for the special assessment collections and debt service payments for all local improvement
districts located within the City.
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126
Total
GO Library 2010 2010 Nonmajor
Refunding A & B C & D Local 2006 LID Special Debt Service
Bond Debt Annex Revitalization Golf Guarantee Assessments Funds
ASSETS:
Cash and Cash Equivalents -$ -$ -$ -$ 1,588$ 10,357$ 11,945$
Special Assessments - - - - - 11,397 11,397
Total Assets - - - - 1,588 21,754 23,342
LIABILITIES, DEFERRED INFLOWS AND FUND BALANCES:
Deferred Inflows of Resources:
Unavailable Revenue - Special Assessments - - - - - 11,397 11,397
Total Deferred Inflows of Resources - - - - - 11,397 11,397
Fund Balances:
Restricted - - - - 1,588 10,357 11,945
Total Fund Balances - - - - 1,588 10,357 11,945
Total Liabilities, Deferred Inflows and
Fund Balances -$ -$ -$ -$ 1,588$ 21,754$ 23,342$
City of Auburn, WashingtonCOMBINING BALANCE SHEET
NON-MAJOR DEBT SERVICE FUNDS
December 31, 2016
City of Auburn: 2016 CAFR Fund Financial Statements and Schedules
127
Total
GO Library 2010 2010 Nonmajor
Refunding A & B C & D Local 2016 Golf &L I D Special Debt Service
Bond Debt Annex Revitalization Cemetery Guarantee Assessments Funds
REVENUES:
Taxes:
Retail Sales & Use -$ -$ 240,593$ -$ -$ -$ 240,593$
Special Assessments - - - - 4,111 4,111
Intergovernmental - 372,791 119,792 - - - 492,583
Investment Earnings 105 - 335 - 6 64 510
Miscellanous - - - - - 1,731 1,731
Total Revenues 105 372,791 360,720 - 6 5,906 739,528
EXPENDITURES:
Debt Service:
Principal 250,000 545,000 225,000 430,143 - 5,961 1,456,104
Interest 35,100 1,143,443 367,431 45,142 - 1,284 1,592,400
Total Expenditures 285,100 1,688,443 592,431 475,285 - 7,245 3,048,504
Excess (Deficiency) of Revenues
Over (Under) Expenditures (284,995) (1,315,652) (231,711) (475,285) 6 (1,339) (2,308,976)
OTHER FINANCING SOURCES (USES):
Issuance of Debt - - - 3,128,732 - - 3,128,732
Payment to Escrow Agent - Refunded Bond - - - (3,005,000) - - (3,005,000)
Transfers In (Note 5)284,995 1,315,652 231,711 351,553 - - 2,183,911
Total Other Financing Sources (Uses)284,995 1,315,652 231,711 475,285 - - 2,307,643
Net Change in Fund Balances - - - - 6 (1,339) (1,333)
Fund Balances - Beginning - - - - 1,582 11,696 13,278
Fund Balances - Ending -$ -$ -$ -$ 1,588$ 10,357$ 11,945$
City of Auburn, Washington
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE
NON-MAJOR DEBT SERVICE FUNDS
For the Year Ended December 31, 2016
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129
NON-MAJOR GOVERNMENTAL FUNDS
CAPITAL PROJECT FUNDS
Capital projects funds account for the City of Auburn's financial resources used for the acquisition or
construction of major non-proprietary capital facilities. Auburn has two non-major capital project funds.
The Municipal Park Construction Fund
Accounts for park related construction activity and includes funding from a portion of field rental
income and adult athletic team fees.
The Local Revitalization Fund
Accounts for the City Hall Plaza and the Downtown Promenade project.
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130
Municipal Nonmajor
Park Local Capital Project
Construction Revitalization Funds
ASSETS:
Cash and Cash Equivalents 1,698,627$ 392,162$ 2,090,789$
Due From Other Governmental Units 20,000 - 20,000
Total Assets 1,718,627 392,162 2,110,789
LIABILITIES AND FUND BALANCES:
Liabilities:
Current Payables 335,727 1,672 337,399
Interfund Payable (Note 5)400,000 - 400,000
Total Liabilities 735,727 1,672 737,399
Fund Balances:
Restricted 982,900 - 982,900
Assigned - 390,490 390,490
Total Fund Balances 982,900 390,490 1,373,390
Total Liabilities and Fund Balances 1,718,627$ 392,162$ 2,110,789$
City of Auburn, Washington
COMBINING BALANCE SHEET
CAPITAL PROJECT FUNDS
December 31, 2016
City of Auburn: 2016 CAFR Fund Financial Statements and Schedules
131
Municipal Nonmajor
Park Local Capital Project
Construction Revitalization Funds
REVENUES:
Taxes:
Property 134,494$ -$ 134,494$
Intergovernmental 1,288,587 - 1,288,587
Charges for Services 9,723 - 9,723
Investment Earnings 4,796 1,786 6,582
Miscellaneous 43,595 - 43,595
Total Revenues 1,481,195 1,786 1,482,981
EXPENDITURES:
Cultural and Recreation 199,416 - 199,416
Capital Outlay 5,858,474 75,847 5,934,321
Total Expenditures 6,057,890 75,847 6,133,737
Excess (Deficiency) of Revenues
Over (Under) Expenditures (4,576,695) (74,061) (4,650,756)
OTHER FINANCING SOURCES (USES):
Transfers In (Note 5)4,895,655 - 4,895,655
Total Other Financing Sources (Uses)4,895,655 - 4,895,655
Net Change in Fund Balances 318,960 (74,061) 244,899
Fund Balances - Beginning 663,940 464,551 1,128,491
Fund Balances - Ending 982,900$ 390,490$ 1,373,390$
City of Auburn, Washington
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
CAPITAL PROJECT FUNDS
For the Year Ended December 31, 2016
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133
NON-MAJOR GOVERNMENTAL FUNDS
PERMANENT FUNDS
Permanent funds are used to report resources that are legally restricted to the extent that only
earnings, and not principal, may be used for purposes that support City programs that are for the benefit
of the City or its citizens. Auburn has one permanent fund.
The Cemetery Endowed Care Fund
Accounts for non-expendable investments held by the City's trustee. The interest income from
investments is available for use by the cemetery fund for capital enhancement and maintenance.
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134
Cemetery
Endowed
Care
ASSETS:
Cash and Cash Equivalents
Non-Expendable Trust 1,743,809$
Total Assets 1,743,809
LIABILITIES AND FUND BALANCES:
FUND BALANCES:
Nonspendable 1,666,043
Assigned 77,766
Total Fund Balances 1,743,809
Total Liabilities and Fund Balances 1,743,809$
City of Auburn, Washington
BALANCE SHEET
PERMANENT FUND
December 31, 2016
City of Auburn: 2016 CAFR Fund Financial Statements and Schedules
135
Cemetery
Endowed
Care
REVENUES:
Increase to Endowment from Lot Sales 50,337$
Investment Earnings 7,192
Total Revenues 57,529
EXPENDITURES:
Excess (Deficiency) of Revenues
Over (Under) Expenditures 57,529
Net Change in Fund Balance 57,529
Fund Balance - Beginning 1,686,280
Fund Balance - Ending 1,743,809$
For the Year Ended December 31, 2016
City of Auburn, Washington
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
PERMANENT FUND
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137
NON-MAJOR PROPRIETARY FUNDS
ENTERPRISE FUNDS
The City's enterprise funds are used to account for operations that are financed and operated in a
manner similar to private business operations. The goods and services these funds provide to the
general public are primarily financed by service charges. Enterprise funds are self-supporting and use
the accrual method of accounting. Auburn has two non-major enterprise funds.
The Airport Fund
Provides accounting of the activities of the Auburn Municipal Airport. Sources of income for the fund
are leases, rentals, fuel charges, investment interest, and grant funding as available.
The Cemetery Fund
Accounts for Mountain View Cemetery's operations.
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138
Total
Nonmajor
Enterprise
Airport Cemetery Funds
ASSETS:
Current Assets:
Cash and Cash Equivalents 781,849$ 609,784$ 1,391,633$
Restricted Cash:
Customer Deposits 81,771 - 81,771
Due From Other Governmental Units 34,877 - 34,877
Inventories - 7,995 7,995
Total Current Assets 898,497 617,779 1,516,276
Noncurrent Assets:
Capital Assets:
Land 3,653,343 342,836 3,996,179
Buildings and Equipments 3,004,971 1,022,267 4,027,238
Improvements Other Than Buildings 9,632,732 1,175,259 10,807,991
Construction in Progress 232,650 - 232,650
Less: Accumulated Depreciation (7,131,340) (1,517,857) (8,649,197)
Total Capital Assets (Net of A/D)9,392,356 1,022,505 10,414,861
Total Noncurrent Assets 9,392,356 1,022,505 10,414,861
Total Assets 10,290,853 1,640,284 11,931,137
DEFERRED OUTFLOWS OF RESOURCES:
Deferred Outflow from Bond Refunding 32,755 - 32,755
Deferred Outflow Related to Pensions 4,454 69,954 74,408
37,209 69,954 107,163
LIABILITIES:
Current Liabilities:
Current Payables 48,453 67,317 115,770
Interfund Payables 133,682 - 133,682
Employee Leave Benefits - Current 2,716 20,157 22,873
General Obligation Bonds Payable - Current 171,023 - 171,023
Customer Deposits 80,036 - 80,036
Total Current Liabilities 435,910 87,474 523,384
Noncurrent Liabilities:
Employee Leave Benefits 803 5,958 6,761
General Obligation Bonds Payable 362,822 - 362,822
Net Pension Liability 14,493 247,063 261,556
Total Noncurrent Liabilities 378,118 253,021 631,139
Total Liabilities 814,028 340,495 1,154,523
DEFERRED INFLOWS OF RESOURCES:
Deferred Inflow Related to Pensions (82) (4,667) (4,749)
NET POSITION:
Net Investment in Capital Assets 8,858,511 1,022,505 9,881,016
Unrestricted 655,605 351,905 1,007,510
Total Net Position 9,514,116$ 1,374,410$ 10,888,526$
City of Auburn, Washington
COMBINING STATEMENT OF NET POSITION
NON-MAJOR ENTERPRISE FUNDS
December 31, 2016
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139
Total
Nonmajor
Enterprise
Airport Cemetery Funds
OPERATING REVENUES:
Charges for Services 48,077$ 1,307,631$ 1,355,708$
Other Operating Revenue 781,003 - 781,003
Total Operating Revenues 829,080 1,307,631 2,136,711
OPERATING EXPENSES:
Operations & Maintenance 16,388 787,541 803,929
Administration 490,283 319,890 810,173
Depreciation/Amortization 454,477 50,578 505,055
Other Operating Expenses 371 15,156 15,527
Total Operating Expenses 961,519 1,173,165 2,134,684
Operating Income (Loss)(132,439) 134,466 2,027
NON-OPERATING REVENUE (EXPENSE):
Interest Revenue 3,661 2,349 6,010
Other Non-Operating Revenues 205,730 20 205,750
Other Non-Operating Expenses (16,009) - (16,009)
Total Non-Operating Revenue (Expense)193,382 2,369 195,751
Income (Loss) Before Contributions & Transfers 60,943 136,835 197,778
Transfers In (Note 5)150,000 - 150,000
Transfers Out (Note 5)(150,000) - (150,000)
Change in Net Position 60,943 136,835 197,778
Net Position, January 1 9,453,173 1,237,575 10,690,748
Net Position, December 31 9,514,116$ 1,374,410$ 10,888,526$
City of Auburn, Washington
COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION
NON-MAJOR ENTERPRISE FUNDS
For the Year Ended December 31, 2016
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Page 1 of 2
Total
Non Major
Enterprise
Airport Cemetery Funds
CASH FLOWS FROM OPERATING ACTIVITIES:
Cash Received From Users 838,802$ 1,307,631$ 2,146,433$
Cash Paid to Suppliers for Goods & Services (510,834) (382,288) (893,122)
Cash Paid for Taxes (371) (15,157) (15,528)
Cash Paid to Employees (36,359) (701,371) (737,730)
Other Non-Operating Revenue 205,730 20 205,750
Net Cash Provided (Used) By Operating Activities 496,968 208,835 705,803
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:
Interfund Loan Payable (49,713) - (49,713)
Transfers from Other Funds 150,000 - 150,000
Operating Transfers Out (150,000) - (150,000)
Net Cash Provided (Used) by Non-Capital Financing Activities (49,713) - (49,713)
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES:
Purchase of Capital Assets (203,813) (14,541) (218,354)
Capital Grant 8,628 - 8,628
Premium & Bond Issuance Costs 7,279 - 7,279
Principal Payment on Debt (166,439) - (166,439)
Interest Payment on Debt (16,009) - (16,009)
Net Cash Provided (Used) for Capital and Related Financing Activities (370,354) (14,541) (384,895)
CASH FLOW FROM INVESTING ACTIVITIES:
Interest Received 3,661 2,349 6,010
Net Cash Provided (Used) in Investing Activities 3,661 2,349 6,010
Net Increase (Decrease) in Cash and Cash Equivalents 80,562 196,643 277,205
Cash and Cash Equivalents - Beginning of Year 783,058 413,141 1,196,199
Cash and Cash Equivalents - End of Year 863,620$ 609,784$ 1,473,404$
CASH AT END OF YEAR CONSISTS OF:
Cash and Cash Equivalents 781,849 609,784 1,391,633
Restricted Cash - Customer Deposits 81,771 - 81,771
Total Cash 863,620$ 609,784$ 1,473,404$
City of Auburn, Washington
COMBINING STATEMENT OF CASH FLOWS
NON-MAJOR ENTERPRISE FUNDS
For the Fiscal Year Ended December 31, 2016
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Page 2 of 2
Total
Non Major
Enterprise
Airport Cemetery Funds
RECONCILIATION OF NET OPERATING INCOME TO NEW CASH
PROVIDED BY OPERATING ACTIVITIES
Operating Income (Loss)(132,439)$ 134,466$ 2,027$
ADJUSTMENTS TO RECONCILE OPERATING INCOME TO
NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES:
Depreciation 454,477 50,578 505,055
Other Non-Operating Revenue 205,730 20 205,750
Asset (Increases) Decreases:
Inventory - (1,273) (1,273)
Liability Increases (Decreases):
Accounts & Vouchers Payable (40,614) 21,299 (19,315)
Deposits Payable 9,722 - 9,722
Wages & Benefits Payable (230) (2,515) (2,745)
Compensated Absences Payable 322 6,260 6,582
Total Adjustments 629,407 74,369 703,776
Net Cash Provided (Used) by Operating Activities 496,968$ 208,835$ 705,803$
SCHEDULE OF NONCASH INVESTING, CAPITAL AND
FINANCING ACTIVITIES
Total Non Cash Investing, Capital and Financing Activities -$ -$ -$
City of Auburn, Washington
COMBINING STATEMENT OF CASH FLOWS
NON-MAJOR ENTERPRISE FUNDS
For the Fiscal Year Ended December 31, 2016
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City of Auburn: 2016 CAFR Fund Financial Statements and Schedules
143
NON-MAJOR PROPRIETARY FUNDS
INTERNAL SERVICE FUNDS
The City of Auburn's internal service funds are used to account for the financing of goods and services
provided by one department of operation to other departments on a cost reimbursement basis.
Internal service funds are self-supporting and use the accrual method of accounting. Auburn has five
internal service funds.
The Insurance Fund
Provides a source of funds to pay unemployment claims and property and casualty claims which fall
below deductible levels.
The Workers Comp Self Insurance Fund
Provides a source of funds to pay time loss and medical benefits for employees who are affected by
an occupational injury or illness.
The Facilities Funds
Accounts for the costs of maintaining various City facilities.
The Information Services Fund
Accounts for the costs of purchasing and maintaining the City’s various computer and
telecommunications systems.
The Equipment Rental Fund
Accounts for the costs of purchasing, maintaining, and operating Auburn's fleet of vehicles and
related equipment.
City of Auburn: 2016 CAFR Fund Financial Statements and Schedules
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Workers Comp Information Equipment
Insurance Self Insurance Facilities Services Rental Total
ASSETS:
Current Assets:
Cash and Cash Equivalents 1,385,685$ 1,113,493$ 2,046,505$ 3,640,794$ 5,689,907$ 13,876,384$
Customer Accounts - - 4,096 - 175 4,271
Due From Other Governmental Units - - 15 6,027 - 6,042
Inventories - - - - 225,116 225,116
Total Current Assets 1,385,685 1,113,493 2,050,616 3,646,821 5,915,198 14,111,813
Noncurrent Assets:
Capital Assets:
Buildings and Equipment - - - 7,809,762 16,134,848 23,944,610
Improvements Other than Buildings - - - 7,497 109,661 117,158
Construction in Progress - - - - 34,727 34,727
Less: Accumulated Depreciation - - - (6,214,992) (9,737,618) (15,952,610)
Total Capital Assets (Net of A/D)- - - 1,602,267 6,541,618 8,143,885
Total Noncurrent Assets - - - 1,602,267 6,541,618 8,143,885
Total Assets 1,385,685 1,113,493 2,050,616 5,249,088 12,456,816 22,255,698
DEFERRED OUTFLOWS OF RESOURCES:
Deferred Outflow Related to Pensions - 11,680 107,587 261,401 97,402 478,070
LIABILITIES:
Current Liabilities:
Current Payables - 16,125 197,600 262,533 105,260 581,518
Customer Deposits - - 300 - - 300
Employee Leave Benefits - Current - 4,887 70,436 102,334 23,983 201,640
Other Liabilities Payable - - - - 40,297 40,297
Total Current Liabilities - 21,012 268,336 364,867 169,540 823,755
Noncurrent Liabilities
Employee Leave Benefits - 1,444 20,818 30,246 7,089 59,597
Other LT Liabilities Payable - - - - 106,187 106,187
Net Pension Liability - 38,160 346,357 841,945 1,297,729 2,524,191
Total Noncurrent Liabilities - 39,604 367,175 872,191 1,411,005 2,689,975
Total Liabilities - 60,616 635,511 1,237,058 1,580,545 3,513,730
DEFERRED INFLOWS OF RESOURCES:
Deferred Inflow Related to Pensions - 29 (7,632) (17,919) 53,260 27,738
NET POSITION:
Net Investment in Capital Assets - - - 1,602,267 6,395,134 7,997,401
Restricted For:
Unrestricted 1,385,685 1,064,528 1,530,324 2,689,083 4,525,279 11,194,899
Total Net Position 1,385,685$ 1,064,528$ 1,530,324$ 4,291,350$ 10,920,413$ 19,192,300$
City of Auburn, Washington
COMBINING STATEMENT OF NET POSITION
INTERNAL SERVICE FUNDS
December 31, 2016
City of Auburn: 2016 CAFR Fund Financial Statements and Schedules
145
Workers Comp Information Equipment
Insurance Self Insurance Facilities Services Rental Total
OPERATING REVENUES:
Charges for Services -$ 871,663$ 3,330,400$ 5,394,652$ 3,304,965$ 12,901,680$
Other Operating Revenue - - 36,458 82,536 - 118,994
Total Operating Revenues - 871,663 3,366,858 5,477,188 3,304,965 13,020,674
OPERATING EXPENSES:
Operations & Maintenance - 556,336 3,314,364 5,375,004 1,376,161 10,621,865
Administration 149,090 - - - 780,689 929,779
Depreciation/Amortization - - - 728,777 1,059,202 1,787,979
Total Operating Expenses 149,090 556,336 3,314,364 6,103,781 3,216,052 13,339,623
Operating Income (Loss)(149,090) 315,327 52,494 (626,593) 88,913 (318,949)
NON-OPERATING REVENUE (EXPENSE):
Interest Revenue 4,187 3,961 10,257 14,983 24,349 57,737
Other Non-Operating Revenues - - - 526 33,122 33,648
Gain (Loss) on Sale of Capital Assets - - - - 25,486 25,486
Interest Expense - - - - (5,033) (5,033)
Total Non-Operating Revenue (Expense)4,187 3,961 10,257 15,509 77,924 111,838
Income (Loss) Before Contributions (144,903) 319,288 62,751 (611,084) 166,837 (207,111)
Transfers In (Note 5)- - - 2,013,913 2,257,710 4,271,623
Transfers Out (Note 5)- - (659,712) (1,500,000) (1,626,392) (3,786,104)
Change in Net Position (144,903) 319,288 (596,961) (97,171) 798,155 278,408
Net Position, January 1 1,530,588 745,240 2,127,285 4,388,522 10,122,258 18,913,893
Total Net Position - Ending 1,385,685$ 1,064,528$ 1,530,324$ 4,291,350$ 10,920,413$ 19,192,301$
City of Auburn, Washington
COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION
INTERNAL SERVICE FUNDS
For the Year Ended December 31, 2016
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Page 1 of 2
Insurance
Workers Comp
Self Insurance Facilities
Information
Services
Equipment
Rental Total
CASH FLOWS FROM OPERATING ACTIVITIES:
Cash Received From Users -$ 871,663$ 3,438,183$ 5,477,188$ 3,305,845$ 13,092,879$
Cash Paid to Suppliers for Goods & Services (146,394) (449,115) (2,265,411) (3,158,576) (1,469,663) (7,489,159)
Cash Paid for Taxes (2,696) - - - - (2,696)
Cash Paid to Employees - (101,431) (1,022,487) (2,322,096) (851,746) (4,297,760)
Other Cash Received - - - (389) 138 (251)
Net Cash Provided (Used) By Operating Activities (149,090) 321,117 150,285 (3,873) 984,574 1,303,013
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:
Operating Grant Received - - - 526 583 1,109
Transfers In - - - 2,013,913 2,257,710 4,271,623
Transfers Out - - (659,712) (1,500,000) (1,626,392) (3,786,104)
Net Cash Provided (Used) by Non-Capital Financing Activities - - (659,712) 514,439 631,901 486,628
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES:
Proceeds from Sale of Equipment - - - - 56,201 56,201
Purchase of Capital Assets - - - (964,609) (2,142,932) (3,107,541)
Proceeds from Insurance Settlement - - - - 32,539 32,539
Interest Payment on Debt - - - - (5,033) (5,033)
Net Cash Provided (Used) for Capital and Related Financing Activities - - - (964,609) (2,059,225) (3,023,834)
CASH FLOW FROM INVESTING ACTIVITIES:
Interest Received 4,187 3,961 10,257 14,983 24,349 57,737
Net Cash Provided (Used) in Investing Activities 4,187 3,961 10,257 14,983 24,349 57,737
Net Increase (Decrease) in Cash and Cash Equivalents (144,903) 325,078 (499,170) (439,060) (418,401) (1,176,456)
Cash and Cash Equivalents - Beginning of Year 1,530,588 788,415 2,545,675 4,079,854 6,108,308 15,052,840
Cash and Cash Equivalents - End of Year 1,385,685$ 1,113,493$ 2,046,505$ 3,640,794$ 5,689,907$ 13,876,384$
CASH AT END OF YEAR CONSISTS OF:
Cash and Cash Equivalents 1,385,685 1,113,493 2,046,505 3,640,794 5,689,907 13,876,384
Total Cash 1,385,685$ 1,113,493$ 2,046,505$ 3,640,794$ 5,689,907$ 13,876,384$
City of Auburn, Washington
COMBINING STATEMENT OF CASH FLOWS
INTERNAL SERVICE FUNDS
For the Fiscal Year Ended December 31, 2016
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Page 2 of 2
Insurance
Workers Comp
Self Insurance Facilities
Information
Services
Equipment
Rental Total
RECONCILIATION OF NET OPERATING INCOME TO NEW CASH
PROVIDED BY OPERATING ACTIVITIES
Operating Income (Loss)(149,090)$ 315,327$ 52,494$ (626,593)$ 88,913$ (318,949)$
ADJUSTMENTS TO RECONCILE OPERATING INCOME TO
NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES:
Depreciation - - - 728,777 1,059,202 1,787,979
Asset (Increases) Decreases:
Accounts Receivable - - 71,325 (389) 1,018 71,954
Inventory - - - - 8,180 8,180
Liability Increases (Decreases):
Accounts & Vouchers Payable - 6,265 (16,868) (123,355) (161,969) (295,927)
Wages & Benefits Payable - (475) (2,452) (10,323) (6,978) (20,228)
Compensated Absences Payable - - 45,786 28,010 (3,792) 70,004
Total Adjustments - 5,790 97,791 622,720 895,661 1,621,962
Net Cash Provided (Used) by Operating Activities (149,090)$ 321,117$ 150,285$ (3,873)$ 984,574$ 1,303,013$
SCHEDULE OF NONCASH INVESTING, CAPITAL AND
FINANCING ACTIVITIES
Total Non Cash Investing, Capital and Financing Activities -$ -$ -$ -$ -$ -$
City of Auburn, Washington
COMBINING STATEMENT OF CASH FLOWS
INTERNAL SERVICE FUNDS
For the Fiscal Year Ended December 31, 2016
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City of Auburn: 2016 CAFR Fund Financial Statements and Schedules
149
AGENCY FUNDS
The agency fund accounts for monies over which the City is strictly a short-term custodian. Agency
funds typically involve only the receipt, temporary investment, and remittance of fiduciary resources
to individuals, private organizations, or other governments.
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150
Balance Balance
1/1/2016 Additions Deductions 12/31/2016
ASSETS:
Cash and Cash Equivalents 410,408$ 5,135,802$ 5,304,764$ 241,446$
Other Current Assets 31,479 203,507 231,273 3,713
Total Assets 441,887$ 5,339,309$ 5,536,037$ 245,159$
LIABILITIES:
Due to Other Government Units 441,887 9,928,629 9,731,901 245,159
Total Liabilities 441,887$ 9,928,629$ 9,731,901$ 245,159$
City of Auburn, Washington
STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
AGENCY FUND
For the Fiscal Year Ended December 31, 2016
City of Auburn: 2016 CAFR Statistical Section
151
City of Auburn
STATISTICAL SECTION
December 31, 2016
Financial Trends Information
Financial trends schedules are intended to provide users with information to assist them in understanding and assessing how
the City’s financial position has changed over time.
Schedule 1 Net position by components ............................................................................................................... 152
Schedule 2 Changes in net position ....................................................................................................................... 153
Schedule 3 Fund balances, government funds..................................................................................................... 154
Schedule 4 Changes in fund balances, government funds ................................................................................... 155
Schedule 5 Tax revenues by source, government funds ..................................................................................... 156
Revenue Capacity Information
The objective of providing revenue capacity information is to help users understand and assess the factors affecting the
City’s ability to generate its most significant local source revenues.
Schedule 6 Assessed value by type ........................................................................................................................ 157
Schedule 7 Property tax data ................................................................................................................................ 158
Schedule 8 Property tax levies and collections .................................................................................................... 160
Schedule 9 Principal taxpayers-property taxes-sales taxes .................................................................................. 161
Schedule 10 Retail tax collections by sector ...........................................................................................................162
Debt Capacity Information
Debt capacity information is intended to assist users to understand and assess the City’s current levels of outstanding debt
and ability to issue additional debt in the future.
Schedule 11 Ratios of outstanding debt by type ................................................................................................... 163
Schedule 12 Computation of legal debt margin ..................................................................................................... 164
Schedule 13 Legal debt margin ratios ..................................................................................................................... 164
Schedule 14 Computation of net direct and estimated overlapping debt............................................................ 165
Schedule 15 Ratios of net general bonded debt to assessed value ...................................................................... 166
Schedule 16 Pledged revenue bond coverages ..................................................................................................... 167
Demographic and Economic Information
These schedules offer demographic and economic information to assist users in understanding certain aspects of the
environment within which the City operates and to provide information that facilitates comparisons of financial statement
information over time and across governmental units.
Schedule 17 Population, income and housing trends ............................................................................................ 168
Schedule 18 Major employers ................................................................................................................................. 169
Operating Information
These schedules contain service and infrastructure data to help users understand how the information in the City’s financial
report relates to the services the City provides and the activities it performs.
Schedule 19 Staffing levels by department .............................................................................................................170
Schedule 20 Operating indicators by department .................................................................................................. 171
Schedule 21 Capital indicators by department ........................................................................................................ 172
Schedule 22 Utility customers by customer class ................................................................................................... 172
City of Auburn: 2016 CAFR Statistical Section
152
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Governmental activities:
Net Investment in Capital Assets 212,611,232$ 303,564,348$ 314,691,982$ 320,506,701$ 340,941,112$ 354,899,294$ 346,195,793$ 348,080,505$ 361,094,242$ 367,128,894$
Restricted 24,519,024 28,965,599 12,741,566 15,180,467 14,230,963 13,164,116 15,019,909 16,404,328 19,470,880 26,745,270
Unrestricted 26,774,107 25,955,501 43,754,879 46,734,364 45,250,090 43,245,050 47,426,352 51,898,566 40,928,090 42,900,814
Total governmental activities net position 263,904,363 358,485,448 371,188,427 382,421,532 400,422,165 411,308,460 408,642,054 416,383,399 421,493,212 436,774,978
Business-type activities:
Net Investment in Capital Assets 130,515,163 144,626,496 150,621,492 152,343,987 166,289,542 173,709,864 165,619,867 169,098,916 187,604,782 195,490,061
Restricted 1,227,395 933,914 2,071,219 4,107,128 4,153,982 4,719,058 16,839,589 14,115,610 4,764,340 3,110,414
Unrestricted 40,655,261 35,859,489 29,546,169 28,642,334 30,523,974 30,439,381 32,880,216 37,724,080 32,974,662 40,797,698
Total business-type activities net position 172,397,819 181,419,899 182,238,880 185,093,449 200,967,498 208,868,303 215,339,672 220,938,606 225,343,784 239,398,173
Primary government:
Net Investment in Capital Assets 343,126,395 448,190,844 465,313,474 472,850,688 507,230,654 528,609,158 511,815,660 517,179,421 548,699,024 562,618,955
Restricted 25,746,419 29,899,513 14,812,785 19,287,595 18,384,945 17,883,174 31,859,498 30,519,938 24,235,220 29,855,684
Unrestricted 67,429,368 61,814,990 73,301,048 75,376,698 75,774,064 73,684,431 80,306,568 89,622,646 73,902,752 83,698,512
Total primary government net position 436,302,182$ 539,905,347$ 553,427,307$ 567,514,981$ 601,389,663$ 620,176,763$ 623,981,726$ 637,322,005$ 646,836,996$ 676,173,151$
Source: City of Auburn, Finance Department
City of Auburn, Washington
SCHEDULE 1
NET POSITION BY COMPONENTS
Last Ten Fiscal Years
(Accrual Basis of Accounting)
City of Auburn: 2016 CAFR Statistical Section
153
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Expenses
Governmental activities:
General government 7,196,492$ 8,000,715$ 7,567,085$ 7,934,948$ 8,581,829$ 9,441,887$ 7,508,112$ 8,363,427$ 9,187,539$ 9,557,602$
Public safety 33,396,630 28,217,844 25,675,063 25,890,627 27,320,805 27,339,301 27,423,015 27,144,153 29,883,217 32,117,837
Transportation 8,077,154 12,974,861 11,471,167 11,989,752 12,123,615 15,736,610 14,861,834 16,150,877 17,324,036 16,602,993
Physical environment 3,269,334 3,096,696 3,327,836 2,498,539 2,327,911 2,535,877 2,699,301 2,976,461 2,924,046 3,266,375
Culture and recreation 6,539,281 6,271,924 7,561,569 7,307,270 7,606,584 8,310,210 9,184,289 11,094,524 12,096,651 12,811,186
Economic environment 2,400,031 2,608,980 3,000,257 2,499,631 3,135,984 2,914,335 2,346,025 2,751,869 3,044,354 3,224,984
Health and human services 416,456 776,224 527,029 578,247 619,172 633,175 510,285 622,374 925,299 573,115
Interest on long-term debt 163,916 226,651 408,471 1,809,322 1,685,055 2,336,960 3,795,024 3,615,211 1,986,853 1,709,647
Total governmental activities expenses 61,459,294 62,173,895 59,538,478 60,508,335 63,400,955 69,248,355 68,327,885 72,718,896 77,371,995 79,863,739
Business-type activities:
Water 7,873,191 8,565,231 8,970,215 10,042,879 8,961,736 9,655,724 11,893,094 11,992,944 13,691,529 13,107,629
Sewer 13,974,607 14,479,299 16,569,297 17,794,958 18,852,402 19,680,724 21,584,215 23,026,216 23,992,161 25,685,370
Storm drainage 4,224,881 5,226,823 7,275,072 6,994,381 6,752,021 8,025,729 7,726,467 7,668,072 8,308,559 8,814,542
Solid waste 10,368,901 10,781,426 11,019,606 9,894,429 9,957,943 11,305,322 12,535,078 12,760,313 12,907,832 13,460,155
Golf course 1,576,126 1,958,703 1,909,758 1,844,108 1,903,836 1,912,174 1,933,597 - - -
Non-major business-type activities 1,735,118 1,720,603 1,666,754 1,781,204 2,010,776 1,954,104 1,857,252 1,924,874 2,062,695 2,150,693
Total business-type activities expenses 39,752,824 42,732,085 47,410,702 48,351,960 48,438,714 52,533,777 57,529,703 57,372,419 60,962,776 63,218,389
Total primary government expenses 101,212,118$ 104,905,980$ 106,949,180$ 108,860,294$ 111,839,669$ 121,782,132$ 125,857,588$ 130,091,315$ 138,334,771$ 143,082,128$
Program revenues
Governmental activities:
Charges for services
General Government 1,126,258$ 2,316,125$ 814,095$ 1,168,574$ 1,010,911$ 897,521$ 893,326$ 1,160,198$ 1,243,263$ 939,184$
Public Safety 3,100,973 2,674,777 2,854,530 2,938,942 3,867,013 1,016,191 2,103,823 2,273,903 1,993,117 1,468,536
Transportation 1,930,504 1,272,751 1,587,850 960,532 1,042,147 1,819,851 1,967,778 1,660,270 1,446,026 3,265,147
Physical Environment 576,539 257,780 147,996 86,306 103,590 36,766 398,564 276,632 384,485 260,555
Culture and Recreation 1,245,122 917,544 1,048,390 962,558 1,182,688 880,380 873,970 2,876,185 3,052,599 2,508,166
Economic Environment 2,070,534 1,638,579 1,654,692 1,732,397 2,294,916 3,266,188 3,586,844 3,087,853 2,989,579 3,896,453
Health and human services - - 989 449 7,528 - - - - -
Total charges for services 10,049,930 9,077,556 8,108,542 7,849,758 9,508,793 7,916,897 9,824,305 11,335,041 11,109,069 12,338,041
Operating grants and contributions 2,923,968 2,567,788 3,001,401 3,022,835 1,724,711 3,560,707 1,967,252 1,333,652 4,234,309 2,767,931
Capital grants and contributions 9,213,115 94,905,563 12,806,049 10,702,132 19,730,140 17,835,784 5,955,062 6,001,230 19,526,548 13,275,208
Total governmental activities program revenues 22,187,013 106,550,907 23,915,992 21,574,725 30,963,644 29,313,388 17,746,619 18,669,923 34,869,926 28,381,180
Business-type activities:
Charges for services 38,784,127 39,883,386 42,338,079 43,461,742 45,045,488 50,710,688 57,533,735 60,332,817 63,391,139 65,733,943
Operating grants and contributions 43,263 55,024 87,454 70,841 116,735 97,052 90,361 111,025 106,286 106,286
Capital grants and contributions 12,479,500 10,670,660 1,992,259 7,391,111 15,981,735 7,248,835 5,483,344 5,070,810 5,821,857 10,574,852
Total business-type activities program revenues 51,306,890 50,609,070 44,417,792 50,923,694 61,143,958 58,056,575 63,107,440 65,514,652 69,319,282 76,415,081
Total primary government program revenues 73,493,903 157,159,977 68,333,784 72,498,419 92,107,602 87,369,963 80,854,059 84,184,575 104,189,208 104,796,261
Net (expense)/revenue
Governmental activities (39,272,281) 44,377,012 (35,622,486) (38,933,610) (32,437,311) (39,934,967) (50,581,266) (54,048,973) (42,502,069) (51,482,559)
Business-type activities 11,554,066 7,876,985 (2,992,910) 2,571,734 12,705,244 5,522,798 5,577,737 8,142,233 8,356,506 13,196,692
Total primary government net expense (27,718,215)$ 52,253,997$ (38,615,396)$ (36,361,876)$ (19,732,067)$ (34,412,169)$ (45,003,529)$ (45,906,740)$ (34,145,563)$ (38,285,867)$
General revenues and other changes in net position
Governmental activities:
Taxes:
Property taxes 16,164,073$ 10,804,825$ 13,362,672$ 14,766,470$ 15,204,611$ 14,970,136$ 14,490,790$ 15,867,838$ 17,271,705$ 18,102,286$
Retail sales and use tax 18,958,484 17,620,661 14,727,496 15,657,081 16,213,244 16,679,278 18,335,157 19,744,684 21,125,730 21,475,335
Interfund utility taxes 2,095,901 2,507,213 3,437,526 2,788,083 2,948,297 3,281,816 3,892,250 4,068,667 4,260,831 4,624,951
Utility taxes 6,073,429 8,075,355 9,071,485 8,886,964 9,049,689 8,856,498 9,156,636 9,040,015 8,838,179 8,917,401
Excise taxes 3,862,692 3,477,517 2,310,076 1,389,030 1,859,738 2,141,620 2,555,850 2,888,797 4,999,517 5,057,013
Other taxes 2,005,836 2,949,430 4,607,584 4,622,138 4,644,909 4,679,333 4,429,090 4,601,925 4,722,482 5,160,215
Investment earnings 2,993,174 1,589,837 570,798 379,316 224,593 178,618 121,687 105,117 118,399 332,520
Miscellaneous (406,847) 2,751,495 67,223 214,190 775,969 547,391 (4,625,627) 178,482 194,600 157,874
Transfers (371,660) 427,740 170,605 1,463,444 (483,107) (513,428) (218,230) 5,294,793 (462,955) 424,173
Total governmental activities 51,375,082 50,204,073 48,325,465 50,166,715 50,437,943 50,821,262 48,137,603 61,790,318 61,068,488 64,251,768
Business-type activities:
Investment earnings 2,098,417 1,242,363 312,618 158,211 101,694 82,903 68,400 51,261 70,560 196,595
Miscellaneous 427,522 330,472 3,669,878 1,588,068 2,584,004 1,781,676 763,717 2,700,233 1,881,835 1,085,275
Transfers 371,660 (427,740) (170,605) (1,463,444) 483,107 513,428 218,230 (5,294,793) 462,955 (424,173)
Total business-type activities:2,897,599 1,145,095 3,811,891 282,835 3,168,805 2,378,007 1,050,347 (2,543,299) 2,415,350 857,697
Total primary government 54,272,681$ 51,349,168$ 52,137,356$ 50,449,550$ 53,606,748$ 53,199,269$ 49,187,950$ 59,247,019$ 63,483,838$ 65,109,465$
Change in net position Before Change in Accounting Principle
Governmental activities 12,102,801 94,581,085 12,702,979 11,233,105 18,000,632 10,886,295 (2,443,663) 7,741,345 18,566,419 12,769,209
Business-type activities 14,451,665 9,022,080 818,981 2,854,569 15,874,049 7,900,805 6,628,084 5,598,934 10,771,856 14,054,389
Total primary government 26,554,466$ 103,603,165$ 13,521,960$ 14,087,674$ 33,874,681$ 18,787,100$ 4,184,421$ 13,340,279$ 29,338,275$ 26,823,598$
Change in Accounting Principle
Governmental activities - - - - - - (222,743) - (13,456,606) 2,512,557
Business-type activities - - - - - - (156,715) - (6,366,678) -
Total primary government -$ -$ -$ -$ -$ -$ (379,458)$ -$ (19,823,284)$ 2,512,557$
Change in net position After Change in Accounting Principle
Governmental activities 12,102,801 94,581,085 12,702,979 11,233,105 18,000,632 10,886,295 (2,666,406) 7,741,345 5,109,813 15,281,766
Business-type activities 14,451,665 9,022,080 818,981 2,854,569 15,874,049 7,900,805 6,471,369 5,598,934 4,405,178 14,054,389
Total primary government 26,554,466$ 103,603,165$ 13,521,960$ 14,087,674$ 33,874,681$ 18,787,100$ 3,804,963$ 13,340,279$ 9,514,991$ 29,336,155$
Source: City of Auburn, Finance Department
City of Auburn, Washington
SCHEDULE 2
CHANGES IN NET POSITION
Last Ten Fiscal Years
(Accrual Basis of Accounting)
City of Auburn: 2016 CAFR Statistical Section
154
2007 2008 2009 2010 2011 (1)2012 2013 2014 2015 2016
General Fund
Unreserved 14,462,720$ 13,071,091$ 13,237,851$ 15,382,354$ -$ -$ -$ -$ -$ -$
Nonspendable - - - - - 370,400 127 127 127 -
Assigned - - - - 7,082,130 5,935,567 5,892,611 4,045,598 7,284,159 7,160,098
Unassigned - - - - 14,193,365 17,395,933 17,751,778 20,914,093 20,267,776 24,991,081
Total General Fund 14,462,720 13,071,091 13,237,851 15,382,354 21,275,495 23,701,900 23,644,516 24,959,818 27,552,062 32,151,179
All other governmental funds
Reserved 1,501,033 1,507,565 1,538,038 1,592,378 - - - - - -
Unreserved, Reported In:-
Special Revenue Funds 13,124,661 14,463,370 15,184,058 15,486,918 - - - - - -
Capital Projects Funds 9,873,331 12,990,032 10,422,360 12,589,604 - - - - - -
Permanent Funds 170,983 144,396 153,503 132,717 - - - - - -
Total Unreserved 23,168,975 27,597,798 25,759,921 28,209,239 - -
Nonspendable 1,453,540 1,475,580 1,536,316 1,574,148 1,585,707 1,666,043
Restricted 12,781,743 11,688,536 13,483,593 14,830,180 17,885,173 25,079,227
Committed 3,134,449 3,258,257 3,242,662 5,066,181 3,658,719 5,421,640
Assigned 3,120,372 2,388,684 4,976,833 4,725,119 4,755,182 1,226,315
Total All Other Governmental Funds 24,670,008$ 29,105,363$ 27,297,959$ 29,801,617$ 20,490,104$ 18,811,057$ 23,239,404$ 26,195,628$ 27,884,781$ 33,393,225$
(1)GASB Statement No. 54 was implemented in FY 2011. See Note 1E of the Notes to the Basic Financial Statements.
Source: City of Auburn, Finance Department
City of Auburn, Washington
SCHEDULE 3
FUND BALANCES, GOVERNMENT FUNDS
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
City of Auburn: 2016 CAFR Statistical Section
155
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Revenues
Taxes 46,721,651$ 43,781,530$ 42,514,006$ 43,069,695$ 44,812,975$ 46,003,582$ 48,545,041$ 51,718,489$ 56,632,337$ 58,279,984$
Licenses and permits 1,606,950 1,110,722 1,326,875 1,311,916 1,769,516 2,344,643 3,041,948 2,400,662 2,074,432 3,005,125
Intergovernmental 5,766,484 8,369,888 9,616,067 9,656,529 16,174,149 20,045,299 11,854,984 9,379,699 13,620,446 12,714,010
Charges for services 5,017,224 3,784,544 3,473,199 3,073,168 2,938,815 4,006,762 3,891,776 5,717,712 7,321,295 11,563,678
Fines and forfeits 2,155,120 2,059,771 1,911,034 2,472,411 1,940,326 1,592,957 1,441,603 1,258,408 938,775 905,921
Special assessments 52,291 57,402 107,597 43,502 32,972 39,115 40,772 472,800 7,494 4,111
Investment earnings 2,456,291 1,363,375 484,696 386,890 237,056 200,826 144,151 135,709 117,942 279,058
Miscellaneous 877,473 1,296,349 1,142,428 3,023,589 2,322,580 871,191 621,673 1,691,274 1,890,419 1,854,450
Total revenues 64,653,484 61,823,581 60,575,902 63,037,699 70,228,389 75,104,375 69,581,948 72,774,753 82,603,140 88,606,337
Expenditures
General government 6,834,084 7,719,205 7,864,410 7,770,957 8,310,037 8,761,452 7,300,667 7,712,018 8,661,592 8,936,366
Public safety 33,568,753 26,023,912 25,762,116 24,597,986 27,399,406 24,039,435 27,146,590 27,264,294 29,164,772 30,809,069
Transportation 7,385,929 8,910,967 9,850,579 10,054,434 16,059,156 20,766,134 15,119,530 8,979,583 16,323,425 12,607,616
Physical environment 3,352,466 3,490,636 3,192,089 2,480,641 2,290,328 2,526,526 2,855,908 3,086,738 2,991,145 3,309,993
Economic environment 2,142,282 2,530,827 3,028,684 2,597,849 3,138,590 2,876,558 2,692,389 2,783,898 3,066,674 3,324,309
Health and human services 416,456 776,224 527,029 568,911 616,717 616,583 631,997 626,681 925,299 573,115
Culture and recreation 6,571,275 6,296,743 6,622,546 6,663,881 6,918,623 7,228,345 7,925,325 9,759,110 10,700,680 11,480,488
Capital outlay (1)7,346,316 4,778,334 30,338,508 8,486,382 8,597,944 4,007,018 2,746,599 3,394,886 3,580,304 6,784,343
Debt service:
Principal 435,093 456,655 479,661 26,683,671 1,208,512 1,219,137 2,238,181 2,704,468 1,713,940 1,737,569
Interest / other 203,266 264,997 296,241 1,775,746 1,761,334 2,245,858 2,709,768 2,892,281 1,801,109 1,632,786
Total expenditures 68,255,920 61,248,500 87,961,863 91,680,457 76,300,647 74,287,046 71,366,954 69,203,957 78,928,940 81,195,654
Excess of revenues
over (under) expenditures (3,602,436) 575,081 (27,385,961) (28,642,758) (6,072,258) 817,329 (1,785,006) 3,570,796 3,674,200 7,410,683
Other financing sources (uses)
Transfers in 6,103,144 7,386,082 6,994,306 9,442,727 7,410,926 6,643,116 4,776,100 5,309,769 7,100,830 11,121,265
Transfers out (5,542,988) (7,993,842) (6,997,801) (7,745,568) (6,242,333) (7,005,097) (4,450,925) (5,003,448) (6,668,626) (11,182,611)
Capital leases 695,504 17,728 24,549,186 - - - - - - -
Insurance recoveries - - 114,607 200,642 154,200 291,210 192,898 136,585 153,041 83,737
Issuance of debt - 360,000 957,278 31,172,273 - - 3,044,491 240,366 - 3,128,732
Issuance of refunding bond - - - 2,150,000 - - - - - 38,198
Debt Premium - - - 305,844 - - - - - -
Payment to escrow agent - refunded bond - - - (2,235,000) - - - - - (3,005,000)
Sales of capital assets - 2,698,677 127,741 - 1,331,092 800 2,593,405 17,458 21,952 -
Total other financing sources (uses)1,255,660 2,468,645 25,745,317 33,290,918 2,653,885 (69,971) 6,155,969 700,730 607,197 184,321
Net change in fund balances (2,346,776)$ 3,043,726$ (1,640,644)$ 4,648,159$ (3,418,373)$ 747,358$ 4,370,963$ 4,271,526$ 4,281,397$ 7,595,004$
Debt service as a percentage of noncapital 1.12%1.42%1.54%37.50%5.44%6.64%8.71%10.68%5.50%5.14%
expenditures
(1)Capital outlay reported in governmental funds for 2016 are $6,784,343 plus $8,861,273 which is reported for each functional
activity with the other funds results in total capital outlay of $15,645,616 as reported on the Reconciliation of the
Statement of Renevues, Expenditures, and Changes in Fund Balances of Government Funds to the Statement of Activities.
Source: City of Auburn, Finance Department
City of Auburn, Washington
SCHEDULE 4
CHANGES IN FUND BALANCES, GOVERNMENT FUNDS
Last Ten Fiscal Years
(Modified Accrual Basisi of Accouting)
City of Auburn: 2016 CAFR Statistical Section
156
Fiscal Sales Interfund
Year Property & Use Utility Utility Excise Other Total
2007 15,666,016 18,958,484 2,095,901 6,073,429 3,862,692 65,129 46,721,651
2008 12,040,124 17,620,661 2,507,213 8,075,355 3,477,517 60,660 43,781,530
2009 12,914,943 14,727,496 3,437,526 9,071,485 2,310,076 52,480 42,514,006
2010 14,283,303 15,657,081 2,788,083 8,886,964 1,389,030 65,234 43,069,695
2011 14,683,329 16,213,244 2,948,297 9,049,689 1,859,738 58,678 44,812,975
2012 14,987,636 16,679,278 3,281,816 8,856,498 2,141,620 56,734 46,003,582
2013 14,535,673 18,335,157 3,892,250 9,156,636 2,555,850 69,475 48,545,041
2014 15,933,338 19,744,684 4,068,667 9,040,015 2,888,797 42,988 51,718,489
2015 17,337,108 21,125,730 4,260,831 8,838,179 4,999,517 70,972 56,632,337
2016 18,067,324 21,475,335 4,624,951 8,917,401 5,057,013 137,960 58,279,984
Change
2007-2016 15.3%13.3%120.7%46.8%30.9%111.8%24.7%
Source: City of Auburn, Finance Department
TAX REVENUES BY SOURCE, GOVERNMENT FUNDS
Last Ten Fiscal Years
SCHEDULE 5
City of Auburn, Washington
$0
$10,000
$20,000
$30,000
$40,000
$50,000
$60,000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016ThousandsFigure 5: Tax Revenues by Source
2007-2016
Excise & other
Utility
Interfund utility
Sales & use
Property
City of Auburn: 2016 CAFR Statistical Section
157
State Total Total
Fiscal Property Personal Land and Assessed Direct
Year and Other Property Building Value Rate
2007 107,302 635,352 5,783,641 6,526,295 1.48
2008 112,101 640,004 5,804,585 6,556,690 1.49
2009 121,918 764,857 7,837,089 8,723,864 (*)1.49
2010 114,661 715,534 6,935,683 7,765,878 1.82
2011 126,415 726,944 6,711,148 7,564,507 1.93
2012 124,204 709,024 6,392,321 7,225,550 2.08
2013 124,230 745,891 6,098,598 6,968,719 2.10
2014 132,854 880,015 6,409,300 7,422,169 2.17
2015 146,941 911,493 7,308,219 8,366,653 2.08
2016 156,673 958,859 7,851,588 8,967,119 2.05
Source: King County Dept of Assessments & Pierce County Assessor-Treasurer
(*) In 2009, Total Assessed Value increased significantly due to annexations of Lea Hill
and West Hill areas
(Amounts Expressed in Thousands)
City of Auburn, Washington
SCHEDULE 6
ASSESSED VALUE BY TYPE
Last Ten Fiscal Years
$0
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
$7,000,000
$8,000,000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Figure 6: Assessed Value by Type
2007 -2016
State property
Personal property
Land and building
City of Auburn: 2016 CAFR Statistical Section
158
Page 1 of 2
Item 2007 2008 (2)2009 2010
Assessed and estimated actual values (1)
Estimated and actual value (in thousands)6,526,295$ 6,556,690$ 8,723,864$ 7,765,878$
Assessed value (in thousands)6,526,295 6,556,690 8,723,864 7,765,878
Ratio of assessed to actual 100%100%100%100%
Property tax rates (1)
Direct regular and special
General fund 1.48385$ 1.48385$ 1.48678$ 1.82336$
Debt service funds - - - -
Subtotal 1.48385 1.48385 1.48678 1.82336
Overlapping regular and special (1)
Auburn School District 4.40970$ 4.40970$ 4.37709$ 5.09382$
King County 1.20770 1.20770 1.09772 1.28499
State of Washington 2.13233 2.13233 1.96268 2.22253
Port of Seattle 0.22359 0.22359 0.19700 0.21597
Emergency Medical Services 0.30000 0.30000 0.27404 0.30000
Hospital District 0.50854 0.50854 0.47141 0.53290
King County Library District 0.45336 0.45336 0.41736 0.48526
Valley Regional Fire Authority 1.00000 1.00000 1.10995 1.17910
King County Flood Zone 0.10000 0.10000 0.91230 0.10514
King County Ferry District 0.05500 0.05500 0.05018 0.00348
Subtotal 10.39022 10.39022 10.86973 11.42319
Total direct and overlapping 11.87407$ 11.87407$ 12.35651$ 13.24655$
Sources:
(1) King County and Pierce County Deparments of Assessments; real and personal property
has been assessed at 100% of the estimated actual value.
(2) The 2008 decrease in property tax levy to $1.48 is due to the incorporation of the Valley
Regional Fire Authority effective 1/1/2007. The VRFA will assess its own property tax levy
in 2008, partially offsetting what was previously levied by the City.
City of Auburn, Washington
SCHEDULE 7
PROPERTY TAX DATA
Last Ten Fiscal Years
$1.00
$1.50
$2.00
$2.50
$3.00
2007 2008
(2)
2009 2010 2011 2012 2013 2014 2015 2016Per $1,000 of Assessed ValuationFigure 7a: Ten Years City Property Tax Rates
2007 -2016
City of Auburn: 2016 CAFR Statistical Section
159
Page 2 of 2
2011 2012 2013 2014 2015 2016
7,564,507$ 7,225,550$ 6,968,719$ 7,422,169$ 8,366,653$ 8,967,119$
7,564,507 7,225,550 6,968,719 7,422,169 8,366,653 8,967,119
100%100%100%100%100%100%
1.93458$ 2.07527$ 2.10000$ 2.16739$ 2.08085$ 2.04719$
- - - - - -
1.93458 2.07527 2.10000 2.16739 2.08085 2.04719
5.99562$ 6.14004$ 6.62190$ 6.50262$ 6.14079$ 5.82831$
1.33816 1.41588 1.54051 1.51605 1.34522 1.48027
2.27990 2.42266 2.56720 2.47044 2.28514 2.16898
0.22366 0.22982 0.23324 0.21533 0.18885 0.16954
0.30000 0.30000 0.30000 0.33500 0.30217 0.28235
0.55753 0.50000 0.50000 0.50000 0.50000 0.50000
0.56621 0.56992 0.56743 0.56175 0.50276 0.47714
1.17977 1.18925 1.20479 1.20294 1.18043 1.13495
0.10976 0.11616 0.13210 0.15369 0.13860 0.12980
0.00360 0.00372 0.00378 0.00349 - -
12.55421 12.88745 13.67095 13.46131 12.58396 12.17134
14.48879$ 14.96272$ 15.77095$ 15.62870$ 14.66481$ 14.21853$
$0.00
$2.00
$4.00
$6.00
$8.00
$10.00
$12.00
$14.00
2007 2008
(2)2009 2010 2011 2012 2013 2014 2015 2016Dollars (Rate Per Thousand)Figure 7b: Property Tax Rates
Last Ten Fiscal Years
Hospital District
King County Ferry District
King County Flood Zone
Valley Regional Fire Authority
King County Library District
Emergency Medical Services
Port of Seattle
State of Washington
King County
Auburn School District
City of Auburn: 2016 CAFR Statistical Section
160
Total Tax Collections
Fiscal Levy for in Subsequent Current Year
Year Fiscal Year Amount % of Levy Years Amount % of Levy Levy Balance
King County:
2007 13,842,944 13,605,301$ 98.3%237,480 13,842,781$ 100.0%163$
2008 9,550,735 9,406,398 98.5%144,084 9,550,482 100.0%253
2009 11,672,058 11,390,684 97.6%280,801 11,671,485 100.0%573
2010 12,722,912 12,459,564 97.9%253,366 12,712,930 99.9%9,982
2011 13,071,397 12,846,996 98.3%223,933 13,070,929 100.0%468
2012 13,392,214 13,167,731 98.3%220,258 13,387,989 100.0%4,225
2013 12,890,148 12,673,712 98.3%214,600 12,888,311 100.0%1,836
2014 14,167,475 13,970,560 98.6%161,376 14,131,935 99.7%35,539
2015 15,392,207 15,226,048 98.9%123,111 15,349,158 99.7%43,048
2016 16,106,326 15,897,626 98.7%- 15,897,626 98.7%208,700
304,788$
Pierce County:
2007 1,851,622 1,816,706$ 98.1%34,876 1,851,582$ 100.0%40$
2008 1,226,764 1,177,665 96.0%49,073 1,226,738 100.0%26
2009 1,264,380 1,223,668 96.8%40,688 1,264,356 100.0%25
2010 1,489,729 1,451,377 97.4%38,352 1,489,729 100.0%1
2011 1,425,381 1,401,537 98.3%23,838 1,425,375 100.0%6
2012 1,495,390 1,478,223 98.9%17,038 1,495,262 100.0%128
2013 1,484,398 1,471,129 99.1%12,801 1,483,931 100.0%467
2014 1,595,567 1,586,010 99.4%8,557 1,594,567 99.9%1,000
2015 1,746,059 1,738,447 99.6%5,689 1,744,136 99.9%1,923
2016 1,867,945 1,857,614 99.4%- 1,857,614 99.4%10,331
13,946$
Total current levy balance 318,734$
Source: King County Finance and Business Operations Division
Pierce County Budget and Finance Department
Fiscal Year of the Levy Total Collections to Date
City of Auburn, Washington
SCHEDULE 8
PROPERTY TAX LEVIES AND COLLECTIONS
Last Ten Fiscal Years
Collected Within the
95.0%
95.5%
96.0%
96.5%
97.0%
97.5%
98.0%
98.5%
99.0%
99.5%
100.0%
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
FIGURE 8: TEN YEARS COLLECTION OF LEVIED PROPERTY TAXES
Last Ten Fiscal Years
Collection percentage
within the fiscal year of
the levy
Total collection
percentage
City of Auburn: 2016 CAFR Statistical Section
161
Percentage Percentage
of Total City of Total City
Assessed Taxable Assessed Taxable
Taxpayer Value Rank Assessed Value Value Rank Assessed Value
Boeing 486,783,943$ 1 5.43%457,846,367$ 1 7.02%
Glimcher Supermall Venture 108,317,983 2 1.21%124,696,902 2 1.91%
Puget Sound Energy 88,420,731 3 0.99%58,958,636 5 0.90%
EProperty Tax Inc.84,212,600 4 0.94%74,665,100 4 1.14%
Safeway 73,365,846 5 0.82%121,011,972 3 1.85%
PPF Industrial (formerly UPS Supply Chain Solutions)62,791,900 6 0.70%-
Principal Life Insurance Co.61,212,800 7 0.68%-
Belara Communities LLC 54,061,800 8 0.60%-
AMB Institutional Alliance 42,234,700 9 0.47%-
TIAA CREF 37,561,100 10 0.42%-
Muckleshoot Indian Tribe - 57,234,500 6 0.88%
Qwest Corporation - 24,144,890 9 0.37%
Universal Health - 47,220,355 8 0.72%
Invesco Realty Advisors - 53,946,000 7 0.83%
Roundup Co. (Fred Meyer)- 19,217,762 10 0.29%
TOTALS 1,098,963,403$ 12.26%1,038,942,484$ 15.92%
Source: King County and Pierce County Departments of Assessments
Total assessed value for 2016:8,967,119,416$
Total assessed value for 2007:6,526,295,000$
2016 2007
City of Auburn, Washington
SCHEDULE 9a
PRINCIPAL TAXPAYERS-PROPERTY TAXES
Current Year and Nine Years Ago
0%
5%
10%
15%
20%
25%
2007 2016
FIGURE 9a -1: TOP TAXPAYER ASSESSED VALUE
AS A PERCENTAGE OF TOTAL ASSESSED VALUE
Current Year and Nine Years Ago
0%
5%
10%
15%
20%
25%
2007 2016
FIGURE 9a -2: TOP 10 TAXPAYERS ASSESSED VALUE
AS A PERCENTAGE OF TOTAL ASSESSED VALUE
Current Year and Nine Years Ago
Percentage Percentage
Sales of Total City Sales of Total City
Tax Sales Taxes Tax Sales Taxes
Received Sector (1)Rank Received Received Sector (1)Rank Received
487,153$ Automotive 1 2.9%541,347$ Distribution 1 3.1%
453,107 Manufacturing 2 2.7%427,621 Automotive 2 2.4%
441,644 Automotive 3 2.6%384,815 General Retail 3 2.2%
441,238 General Retail 4 2.6%367,913 General Retail 4 2.1%
352,819 Automotive 5 2.1%353,429 Automotive 5 2.0%
289,146 General Retail 6 1.7%337,904 General Retail 6 1.9%
257,885 General Retail 7 1.5%263,683 Automotive 7 1.5%
255,729 Automotive 8 1.5%251,244 General Retail 8 1.4%
252,886 Automotive 9 1.5%247,669 General Retail 9 1.4%
216,206 Automotive 10 1.3%243,894 Automotive 10 1.4%
3,447,813$ 20.3%3,419,519$ 19.4%
Source: Washington State Department of Revenue
(1) It is illegal to disclose specific taxpayer sales tax information, so the above information is being provided
without identification
2016 2007
City of Auburn, Washington
SCHEDULE 9b
PRINCIPAL TAXPAYERS-SALES TAXES
Current Year and Ten Years Ago
City of Auburn: 2016 CAFR Statistical Section
162
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
RETAIL TRADE SECTOR
Automotive/gas 3,643$ 3,255$ 2,559$ 2,553$ 2,785$ 3,019$ 3,136$ 3,309$ 3,707$ 3,659$
Furniture 268 241 220 194 218 226 235 254 254 185
Electronics & appliances 262 242 132 121 127 145 174 237 295 221
Building materials 615 521 358 389 383 425 447 502 590 579
Food stores 378 360 352 354 331 341 335 353 368 397
Health & personal care 143 152 150 144 148 149 174 188 221 284
Apparel 899 873 781 752 754 772 889 1,009 1,080 1,136
General merchandise 974 872 833 801 968 967 974 955 988 1,018
Misc retail trade 1,334 1,234 755 834 851 897 990 1,182 1,193 1,032
8,516 7,750 6,140 6,142 6,566 6,943 7,354 7,989 8,695 8,512
SERVICE SECTOR
Information 531 489 457 979 481 396 446 487 526 630
Finance & insurance 85 85 83 68 66 53 91 88 95 111
Real estate, rental, leasaing 330 394 304 288 304 326 279 315 334 359
Professional, scientific, technical 162 146 200 191 175 173 184 216 195 238
Administrative, supply & remediation services 301 261 261 239 295 334 336 350 383 329
Educational 87 91 42 56 53 54 50 49 60 50
Healthcare & social serivces 88 98 61 37 41 115 33 66 82 92
Arts & entertainment 172 171 147 154 149 153 149 158 208 156
Accomodation & food service 870 915 827 806 839 921 979 1,067 1,159 1,218
Other services 502 457 485 493 482 530 507 526 603 788
3,128 3,107 2,867 3,310 2,882 3,056 3,054 3,322 3,646 3,970
OTHER SECTORS
Construction 2,240 1,647 1,368 1,322 1,296 1,221 1,943 1,754 2,297 2,292
Manufacturing 625 643 383 411 583 405 624 1,163 862 761
Transportation 22 76 31 29 77 55 46 71 66 99
Wholesaling 2,943 2,306 1,073 1,180 1,260 1,297 1,279 1,205 1,229 1,265
Other business 143 72 47 128 224 61 64 120 72 67
Subtotal - other sectors 5,973 4,744 2,902 3,071 3,439 3,038 3,956 4,312 4,525 4,485
GRAND TOTAL 17,617$ 15,601$ 11,909$ 12,523$ 12,887$ 13,037$ 14,364$ 15,623$ 16,866$ 16,967$
OVERLAPPING SALES TAX RATES
Basic sales tax rates
City of Auburn 0.85%0.85%0.85%0.85%0.85%0.85%0.85%0.85%0.85%0.85%
Washington State 6.50%6.50%6.50%6.50%6.50%6.50%6.50%6.50%6.50%6.50%
King County 0.15%0.25%0.25%0.25%0.25%0.25%0.25%0.25%0.25%0.25%
Regional Transit Authority 0.40%0.40%0.90%0.90%0.90%0.90%0.90%0.90%0.90%0.90%
Metro 0.90%0.90%0.90%0.90%0.90%0.90%0.90%0.90%0.90%0.90%
Criminal Justice 0.10%0.10%0.10%0.10%0.10%0.10%0.10%0.10%0.10%0.10%
Total basic sales tax rate 8.90%9.00%9.50%9.50%9.50%9.50%9.50%9.50%9.50%9.50%
Special sales tax rates
Restaurants-for stadium funding (1)0.50%0.50%0.50%0.50%0.50%0.00%0.00%0.00%0.00%0.00%
Motor vehicles-for multimodal transportation 0.30%0.30%0.30%0.30%0.30%0.30%0.30%0.30%0.30%0.30%
(1) This tax expired on October 1, 2011
Source: City of Auburn Finance Department and State of Washington
(Amounts Expressed in Thousands)
City of Auburn, Washington
SCHEDULE 10
RETAIL TAX COLLECTIONS BY SECTOR
Last Ten Fiscal Years
$0
$2,000
$4,000
$6,000
$8,000
$10,000
$12,000
$14,000
$16,000
$18,000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016(Thousands)FIGURE 10: RETAIL TAX COLLECTIONS
City of Auburn: 2007 -2016
Other
Wholesaling
Manufacturing
Contracting
Services
Other Retail
Automotive
City of Auburn: 2016 CAFR Statistical Section
163
General Special Public Works Total Percentage
Fiscal Obligation Assessment Capital Revenue Trust Fund Primary of Personal Per
Year Bonds Bonds Leases Bonds Loans Government Income (1)Capita
2007 10,650,000$ 36,827$ 663,553$ 4,730,000$ 10,149,419$ 26,229,799$ 2.77%519.71
2008 10,053,000 36,827 646,799 3,495,000 9,730,324 23,961,950 1.82%357.61
2009 36,160,850 36,827 25,193,600 2,200,000 10,014,943 73,606,220 4.11%1,090.70
2010 64,816,850 - 604,685 23,220,000 10,296,024 98,937,559 5.35%1,449.21
2011 63,430,850 - 566,212 22,930,000 9,491,810 96,418,872 5.07%1,363.68
2012 61,900,771 - 524,498 23,057,333 8,687,599 94,170,201 5.05%1,321.87
2013 59,568,505 - 480,771 34,292,569 12,442,903 106,784,748 5.57%1,458.11
2014 57,367,766 - 435,068 32,813,473 11,808,711 102,425,018 5.12%1,372.44
2015 55,094,519 - 569,773 31,304,378 11,650,644 98,619,314 4.85%1,305.44
2016 54,245,944 - 476,635 28,545,000 11,412,188 94,679,767 4.48%1,228.65
Source: City of Auburn, Finance Department
(1) Personal income data provided by US Census Bureau estimate for 2013, 2012, 2011; Hebert Research for 2004, 2005 and 2010 only;
other years are city estimates
City of Auburn, Washington
Last Ten Fiscal Years
Govrnmental Activities Business-type Activities
RATIOS OF OUTSTANDING DEBT BY TYPE
SCHEDULE 11
-
300
600
900
1,200
1,500
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
FIGURE 11: PER CAPITA DEBT
Last Ten Fiscal Years
City of Auburn: 2016 CAFR Statistical Section
164
Parks and Utility Total
Councilmanic Excess Levy Open Spaces Purpose Capacity
December 31, 2016 - Total Assessed Value:
9,555,039,113$
2.5% of Assessed Value -$ 238,875,978$ 238,875,978$ 238,875,978$ 716,627,934$
1.5% of Assessed Value 143,325,587 (143,325,587) - - -
Statutory Debt Limit 143,325,587 95,550,391 238,875,978 238,875,978 716,627,934
Debt Outstanding 57,151,577 - - - 57,151,577
Net Debt Outstanding 57,151,577 - - - 57,151,577
Remaining Debt Capacity 86,174,010$ 95,550,391$ 238,875,978$ 238,875,978$ 659,476,357$
General Capacity Special Purpose Capacity
City of Auburn, Washington
SCHEDULE 12
COMPUTATION OF LEGAL DEBT MARGIN
As of December 31, 2016
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Debt Limit 489,472$ 653,979$ 577,669$ 565,822$ 539,989$ 518,188$ 546,602$ 617,872$ 661,996$ 716,628$
Total net debt
applicable to limit 10,757 10,771 62,671 66,868 65,364 63,815 64,047 61,892 59,409 57,152
Legal debt margin 478,715$ 643,208$ 514,998$ 498,954$ 474,625$ 454,372$ 482,554$ 555,980$ 602,588$ 659,476$
Total net debt
applicable to the limit
as a percentage of debt limit 2.20%1.65%10.85%11.82%12.10%12.32%11.72%10.02%8.97%7.98%
City of Auburn, Washington
SCHEDULE 13
LEGAL DEBT MARGIN RATIOS
Last Ten Fiscal Years
(Expressed in Thousands)
City of Auburn: 2016 CAFR Statistical Section
165
Net Debt Percent Bonded Amount
Outstanding Applicable (3)Applicable
Net direct debt:
Net direct debt - City of Auburn (1)56,872,871$
Estimated net overlapping debt: (2)
King County 775,913,000$ 1.86%14,431,982$
Port of Seattle 283,620,000 1.86%5,275,332
School District No. 210 185,338,710 2.66%4,930,010
School District No. 408 145,115,000 78.30%113,625,045
School District No. 415 118,926,628 1.29%1,534,154
Rural Library District 98,720,000 3.21%3,168,912
Valley Regional Fire Authority 13,585,000 90.35%12,274,048
Pierce County 136,125,000 1.01%1,374,863
Total estimated net overlapping debt 156,614,344
Total direct and overlapping debt 213,487,215$
Sources:
(1) Includes both bonded and non bonded debt related to government activities. From Sch. 9 Changes in LT Liabilities
(2) Overlapping governments
(3) King County Assessors office and Pierce County Assessors office.
Calculation of overlapping debt: applicable percentage is determined by the ratio of assessed valuation of taxable property
in overlapping unit to valulation of property subject to taxation in the City of Auburn.
COMPUTATION OF NET DIRECT AND ESTIMATED OVERLAPPING DEBT
As of December 31, 2016
City of Auburn, Washington
SCHEDULE 14
City of Auburn: 2016 CAFR Statistical Section
166
Ratio
of Net
Debt Net Bonded Net
Assessed Net Service Bonded Debt to Bonded
Fiscal Value (1)Bonded Amount (3)Debt Assessed Debt per
Year Population (Thousands) Debt (2)Available (Thousands)Value Capita
2007 50,470 6,526,295 10,650,000$ 35,810$ 10,614$ 0.16%211$
2008 67,005 6,556,690 10,053,000 41,603 10,011 0.15%150
2009 67,485 8,723,864 36,160,850 37,746 36,123 0.41%536
2010 68,270 7,765,878 64,816,850 46,058 64,771 0.83%949
2011 70,705 7,564,507 63,430,850 45,754 63,385 0.84%897
2012 71,240 7,225,550 61,900,771 46,155 61,855 0.86%869
2013 73,235 6,968,719 59,568,505 - 59,569 0.85%813
2014 74,630 7,422,169 57,367,766 - 57,368 0.77%769
2015 75,545 8,366,653 55,094,519 - 55,095 0.66%729
2016 77,060 8,967,119 54,245,944 - 54,246 0.60%704
Notes:
(1) From Schedule 6
(2) General Obligation Debt related to government activities, from Schedule 11.
(3) Fund balance from debt service fund.
RATIOS OF NET GENERAL BONDED DEBT TO ASSESSED VALUE
AND GROSS BONDED DEBT PER CAPITA
Last Ten Fiscal Years
City of Auburn, Washington
SCHEDULE 15
$0
$200
$400
$600
$800
$1,000
-
0.0020
0.0040
0.0060
0.0080
0.0100
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016Debt/Assessed ValueYear
FIGURE 15: BONDED DEBT RATIOS
Last Ten Fiscal Years
Debt/AV Debt/Pop
City of Auburn: 2016 CAFR Statistical Section
167
Direct(2)Debt Service Requirements
Gross (1)Operating Net Revenue Times
Year Revenue Expense Available Principal Interest Total (3)Coverage
2007 27,492,779 21,237,294 6,255,485$ 1,914,523$ 281,065$ 2,195,588$ 2.85
2008 27,665,498 23,149,802 4,515,696 1,942,938 279,765 2,222,703 2.03
2009 31,265,941 27,314,611 3,951,330 2,002,938 217,283 2,220,221 1.78
2010 33,115,398 28,749,877 4,365,520 1,056,094 150,675 1,206,769 3.62
2011 34,909,200 29,201,088 5,708,112 1,013,830 1,248,612 2,262,442 2.52
2012 38,119,472 30,974,506 7,144,966 1,028,830 1,277,285 2,306,115 3.10
2013 42,406,722 36,406,640 6,000,082 1,943,830 1,508,405 3,452,235 1.74
2014 46,900,016 35,502,812 11,397,204 2,197,667 1,599,347 3,797,014 3.00
2015 49,673,159 38,425,799 11,247,360 2,231,093 1,563,433 3,794,526 2.96
2016 50,385,548 38,614,719 11,770,829 2,326,117 1,523,830 3,849,947 3.06
Source: City of Auburn, Finance Department
(1) Includes water, sewer & storm drainage operating, interest and other revenues.
(2) Includes water, sewer & storm drainage operating expenses less depreciation.
(3) Includes both parity and non-parity debt.
PLEDGED REVENUE BOND COVERAGES
Last Ten Fiscal Years
City of Auburn, Washington
SCHEDULE 16
$0
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
$14,000,000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
YEAR
FIGURE 16: UTILITY BOND COVERAGES
Last Ten Fiscal Years
Net revenue available Debt service requirements
City of Auburn: 2016 CAFR Statistical Section
168
Item 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
School enrollment (1)14,559 14,716 14,589 14,482 14,363 14,596 14,971 15,248 15,536 15,887
Rate of unemployment (2)4.2%5.5%9.5%9.6%8.7%7.7%6.0%5.3%5.0%4.7%
Population (3)50,470 67,005 67,485 68,270 70,705 71,240 73,235 74,630 75,545 77,060
Personal income (thousands of dollars) (4)1,444,855$ 2,024,087$ 1,989,660$ 1,848,752$ 1,901,540$ 1,871,973$ 1,917,219$ 2,000,606$ 2,033,520$ 2,111,829$
Per capita personal income (4)28,628$ 30,208$ 29,483$ 27,080$ 26,894$ 26,277$ 26,179$ 26,807$ 26,918$ 27,405$
Housing units (5)
One unit 9,625 14,186 14,235 14,333 14,823 14,957 15,393 15,804 16,042 16,167
Two or more 9,623 10,375 10,391 10,426 10,592 10,631 10,841 10,841 10,847 10,854
Mobile home or special 2,382 2,761 2,782 2,794 2,635 2,618 2,630 2,631 2,637 2,630
Total housing units 21,630 27,322 27,408 27,553 28,050 28,206 28,864 29,276 29,526 29,651
Sources:
(1) Auburn School District No. 408
(2) Bureau of Labor Statistics
(3) WA State Office of Financial Management
(4) US Census Bureau
(5) WA State Office of Financial Management
City of Auburn, Washington
SCHEDULE 17
POPULATION, INCOME AND HOUSING TRENDS
Last Ten Fiscal Years
0
20,000
40,000
60,000
80,000
100,000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
FIGURE 17: POPULATION AND HOUSING TRENDS
Last Ten Fiscal Years
Population Total housing units
City of Auburn: 2016 CAFR Statistical Section
169
Percentage Percentage
of Total City of Total City
Employer Product/service Employees Rank Employment Employees Rank Employment
The Boeing Company Aerospace 5,750 1 15.2%4,200 1 11.7%
The Outlet Collection Retail 3,150 2 8.3%
Auburn School District Education 2,458 3 6.5%1,995 3 5.5%
Muckleshoot Tribal Enterprises Gaming 2,299 4 6.1%2,100 2 5.8%
Green River Community College Education 1,940 5 5.1%850 4 2.4%
Multicare Auburn Medical Center*Hospital 1,613 6 4.3%625 5 1.7%
Emerald Downs Racetrack Horse racing 1,196 7 3.2%500 8 1.4%
Safeway Distribution Center Distribution Center 944 8 2.5%
Social Security Administration Gov't / public offices 678 9 1.8%600 6 1.7%
Zones, Inc.Technology reseller 645 10 1.7%500 9 1.4%
Certainteed Corporation Construction - 575 7 1.6%
City of Auburn City government 455 10 1.3%
TOTALS 20,673 54.6%12,400 34.5%
Sources: WA Employment Security Department
2016 - City of Auburn, Economic Development
2007 - City of Auburn
*Previously Auburn Regional Medical Center.
2016 2007
City of Auburn, Washington
SCHEDULE 18
MAJOR EMPLOYERS
Current Year and Nine Years Ago
0%
20%
40%
60%
80%
100%
2007 2016
FIGURE 18a: AUBURN EMPLOYMENT BASE
PERCENTAGE OF TOP EMPLOYER COMPARED TO ALL
EMPLOYERS
Last Ten Fiscal Years
Top employer
All employers
0%
20%
40%
60%
80%
100%
2007 2016
FIGURE 18b: AUBURN EMPLOYMENT BASE
PERCENTAGE OF TOP 10 EMPLOYERS COMPARED TO
ALL EMPLOYERS
Last Ten Fiscal Years
Top 10
employers
City of Auburn: 2016 CAFR Statistical Section
170
Department 2007 2008 2009 2010(2)2011 2012 2013 2014 2015 2016
Mayor 11 12 12 10 10 7 7 3 3 3
Administration (4)- - - - - - - 8 8 10
Human Resources 17 18 9 7 7 8 8 8 8 9
Finance 24 25 25 21 22 22 23 23 22 22
Municipal Court (3)17 21 21 17 19 - - - 0 0
Legal 14 16 16 13 13 13 13 14 14 14
Community Development (5)29 34 34 24 24 28 29 25 26 26
Police 121 152 152 131 118 122 125 126 129 131
Public Works 54 63 63 43 43 43 48 49 50 53
Parks, Arts and Recreation (6)38 40 40 35 36 36 36 45 45 47
Street 15 14 14 12 19 19 19 19 19 19
Water 19 20 20 22 22 22 22 24 23 23
Sewer 11 11 11 11 12 11 10 10 10 10
Storm Drainage 12 16 17 16 10 10 10 10 10 10
Solid Waste 2 2 2 2 2 2 2 2 2 2
Cemetery 7 7 7 7 7 7 5 5 5 6
Golf Course (6)9 9 9 8 8 8 8 - 0 0
Facilities (1)- - 10 10 10 9 9 9 10 10
Multi-Media (7)- - - - - - - 4 4 4
Innovation & Technology 15 18 18 14 14 18 18 15 16 16
Equipment Rental 9 10 11 6 6 7 10 12 12 12
TOTAL 424 488 490 408 401 391 402 411 416 427
Source: City of Auburn Finance Department
(1)Facilities Division was previously included in the Human Resources Department prior to the creation of a new Internal
Service fund in 2009.
(2)Due to the economic downturn, the City eliminated 82.5 of the total 490 positions in 2010.
(3)In 2012, the City contracted out the Municipal Court to the King County District Court - resulting in a reduction of
19 positions.
(4)In 2014 the Administration Department was created and consists of 8 FTE's who were reorganized from several existing
departments such as the Mayors Department, Public Works and Community Development. This department includes
Emergency Management, Public Affairs, Economic Development, Human Services, Veterans Services and Community
Services.
(5)In 2014 the Planning Department was renamed Community Development.
(6)In 2014 the Golf Course fund was reclassified from an Enterprise Fund and included within the General Fund moving 8
of the Golf Course FTE's to the Parks, Arts and Recreation Department.
(7)In 2014 the Multi-Media division was reorganized from the Innovation & Technology Fund into it's own Internal Service
Fund. The 3.6 FTE's report to the Director of Administration.
City of Auburn, Washington
SCHEDULE 19
STAFFING LEVELS BY DEPARTMENT
Last Ten Fiscal Years
-
20
40
60
80
100
120
140
160
Number of EmployeesFIGURE 19: STAFFING LEVELS BY TYPE OF SERVICE
Last Ten Fiscal Years
2007
2008
2009
2010(2)
2011
2012
2013
2014
2015
2016
City of Auburn: 2016 CAFR Statistical Section
171
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Planning
Commercial permits 214 95 112 18 38 24 32 64 52 79
Commercial construction value ($1,000's)63,658$ 22,887$ 58,896$ 8,386$ 10,904$ 13,219$ 28,357$ 35,786$ 36,289$ 74,887$
Residential permits 293 165 85 184 229 461 464 374 253 242
Residential construction value ($1,000's)61,872$ 27,048$ 15,739$ 36,602$ 43,574$ 98,212$ 96,248$ 83,007$ 62,043$ 68,997$
Police
Crimes:
Arson 30 24 19 23 29 27 14 32 - -
Aggravated Assault 143 154 163 137 148 110 145 156 186 179
Burglary 590 630 590 725 757 983 651 810 851 727
DUI 145 194 193 192 214 171 138 126 188 158
Homicide 1 - 3 3 2 6 5 1 8 6
Narcotics 368 439 440 442 396 383 279 458 511 458
Rape 12 14 13 15 23 23 26 31 31 36
Robbery 92 102 92 79 107 110 109 104 91 98
Theft 1,962 2,343 2,362 2,533 2,435 2,415 2,583 3,192 2,728 2,235
Theft - motor vehicle 672 639 370 569 600 588 678 630 996 1,159
Traffic:
Non-criminal 6,865 6,794 7,788 7,182 5,400 4,922 5,378 6,520 5,489 5,706
Parking 4,802 3,740 4,026 4,648 3,383 1,946 2,052 5,238 3,737 3,822
Parks and Recreation
Athletic teams 479 416 428 439 429 388 382 358 321 328
Recreation activities 2,719 2,056 2,335 2,281 3,462 3,833 3,568 3,557 3,511 2,435
Golf course rounds 50,500 54,993 50,572 49,950 45,484 45,704 47,480 47,697 52,718 48,803
Senior center visits 34,427 36,805 41,032 41,350 41,802 40,704 36,991 40,715 38,485 36,636
Cultural activities 84 84 90 101 127 146 180 202 204 203
Museum audience served 12,090 11,921 11,835 12,570 14,119 15,397 14,163 13,968 13,535 14,380
Cemetery placements 245 289 232 228 273 259 226 250 237 281
Sources: Various city departments
City of Auburn, Washington
SCHEDULE 20
OPERATING INDICATORS BY DEPARTMENT
Last Ten Fiscal Years
City of Auburn: 2016 CAFR Statistical Section
172
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
General City
Total area (square miles)23.4 30.0 30.1 30.1 30.2 30.2 30.2 30.2 30.2 30.2
Public Works
Miles of streets 186 272 276 283 285 249 245 244 254 238
Number of streetlights 3,602 5,074 5,392 5,523 5,581 6,101 6,110 6,211 6,362 6,552
Number of traffic signals 72 83 85 86 89 93 94 94 95 95
Utilities
Number of services 12,954 13,050 13,076 13,372 13,334 13,863 14,106 14,573 14,787 14,872
Miles of water lines 287 283 293 297 304 314 315 316 320 321
Miles of sanitary sewer lines 182 205 207 213 213 219 220 220 223 224
Miles of storm lines 197 197 204 226 247 252 263 282 294 319
Number of fire hydrants 2,369 2,969 2,998 3,044 3,277 3,308 3,329 3,559 3,580 3,577
Public Safety
Number of police stations 2 2 2 2 2 2 2 2 2 3
Parks and Recreation
Total park acreage (1)596 598 602 602 602 630 635 972 977 988.7
Number of softball/baseball fields 19 19 18 18 18 17 17 18 18 18
Number of soccer/football fields 3 3 3 3 3 3 4 4 4 4
Number of playgrounds 30 32 33 35 35 35 36 28 31 31
Sources: Various city departments
(1) The increase in total park acreage since 2013 is due to property inventory update in anticipation of the Parks Recreastion & Open Space Plan update
and additional park categories are now being reported.
City of Auburn, Washington
SCHEDULE 21
CAPITAL ASSET INDICATORS BY DEPARTMENT
Last Ten Fiscal Years
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Water Customers by Class
Single Family Residential 10,482 10,493 10,535 10,564 10,704 11,224 11,476 11,822 11,973 12,054
Multifamily 957 961 985 991 991 989 986 1,000 1,003 1,002
Commercial 1,086 1,098 1,083 1,100 1,095 1,098 1,094 1,146 1,190 1,186
Mfr./Industrial 39 39 38 38 38 37 37 38 38 37
Schools 39 39 37 37 37 36 37 37 37 38
City Accounts 28 30 27 29 28 26 28 30 30 31
Irrigation 316 383 363 401 434 446 441 493 509 517
Total Retail Water Customers 12,947 13,043 13,068 13,160 13,327 13,856 14,099 14,566 14,780 14,865
Wholesale Water Customers 7 7 8 8 7 7 7 7 7 7
Sewer Customers by Class
Single Family Residential N/A 10,698 10,711 10,918 11,183 11,522 11,982 12,631 12,890 13,091
Non-single Family Residential (1)N/A 2,604 2,605 2,612 2,616 2,653 2,659 2,713 2,728 2,725
Total Sewer Customers N/A 13,302 13,316 13,530 13,799 14,175 14,641 15,344 15,618 15,816
Storm Customers by Class
Single Family Residential 9,817 14,374 14,441 14,495 14,846 15,168 15,618 16,013 16,222 16,200
Non-single Family Residential (2)1,595 1,623 1,650 1,769 1,653 1,661 1,640 1,670 1,679 1,913
Total Storm Customers 11,412 15,997 16,091 16,264 16,499 16,829 17,258 17,683 17,901 18,113
Sources: City of Auburn - Utility Billing
City of Auburn, Washington
SCHEDULE 22
NUMBER OF UTILITY CUSTOMERS BY CUSTOMER CLASS
Last Ten Fiscal Years
City of Auburn: 2016 CAFR Statistical Section
173
Prepared by:
Shelley Coleman
Finance Director
Kevin Fuhrer
Assistant Finance Director
Bob Brooks
Financial Planning Manager
Janice Davies
Accounting Manager
Teri Ashton
Accountant
Ronda Stella
Payroll Accountant
Victoria Hankes
Accounting Specialist
Consuelo Rogel
Financial Analyst
Frank Downard
Financial Analyst
Tamara Baker
Financial Analyst
Evelyn McOsker
Finance Secretary
City of Auburn: 2016 CAFR Statistical Section
174