HomeMy WebLinkAboutApril 2011
AGENDA BILL APPROVAL FORM
Agenda Subject: April 2011 Financial Report
Date: 06/20/2011
Department: Finance
Attachments: April Monthly Report Budget Impact: 0
Administrative Recommendation:
Background Summary:
The purpose of the monthly financial reports is to summarize for the City Council the general state of
financial affairs throughout the City and to highlight significant items or trends that the City Council should
be aware of. The following provides a high level summary of the City’s financial performance. Further
detail can be found within the attached financial report.
The April 2011 status report highlights City revenues and expenditures and is based on financial data
available as of May 25, 2011. Sales tax reported in April is for business activities that occurred in
February 2011.
General Fund:
The general fund accounts for all of the City’s financial resources except those required by statute or to
be accounted for in another fund. The General Fund is the City’s largest fund and is used to account for
the majority of City services.
As of the end of April, General Fund revenues reflect the timing of April property tax collections and
totaled $19.4 million and were sufficient to meet expenses of $14.5 million.
Total General Fund revenues for the City at the end of April is $690.8K higher than budget due to
relatively stronger than anticipated collections in property and sales taxes, intergovernmental revenues
and utility (electric) taxes.
The City’s sales taxes totaled $4.8 million and continues to improve over the previous year. Improvement
in retail activity were noted in all areas with the exception of construction which remain weak. Recent
economic data indicate that the national job market remains a concern and may temporarily slow the
pace of the economic recovery.
Expenditures for the General Fund were $3.1 million below budget at the end of April. This is primarily
due to the timing of payments for SCORE, debt service payments and underexpenditures in professional
services. The General Fund revenues exceeded expenses through the month of April and reflects the
timing of revenues such as property taxes in which the majority is received twice a year (April and
October).
Enterprise Funds:
The City’s eight enterprise funds account for operations with revenues primarily provided from user fees,
charges or contracts for services.
1
Agenda Subject: April 2011 Financial Report
Date: 6/20/2011
At the end of April the Water fund revenues are lower than average due to the loss of Covington as a
wholesale customer and a general decline in water sales. Sewer revenues are low compared to
expenses due to a one time adjustment in April to correct prior years’ consumption reads and timing of
payments to Metro for sewer services. Metro bills the City for commercial accounts based on the average
prior period usage rates which were higher than current revenues. Storm fund revenues are on target
and are sufficient to meet expenses.
Golf Course revenues are low at the end of April due to the current economic climate and lower than
average weather conditions that have impacted the number of rounds played during the winter months.
Internal Service Funds:
Internal Service Funds provide services to other City departments and include functions such as
Insurance, Facilities, Information Services, and Equipment Rental.
At the end of the April, revenue from charges assessed to internal client departments were sufficient to
meet expenses. Expenses for the insurance fund during the first quarter included payment of the annual
insurance premium and will be offset by allocations to various departments that will occur throughout the
remainder of the year.
Investment Portfolio:
At the end of April, the City’s total value of cash and investments was $112.7 million and compares to
$107.2 million in March. The change was primarily due to receipt of property taxes and $712K refund of
credit balance from PSE.
Reviewed by Council & Committees: Reviewed by Departments & Divisions:
Arts Commission COUNCIL COMMITTEES: Building M&O
Airport Finance Cemetery Mayor
Hearing Examiner Municipal Serv. Finance Parks
Human Services Planning & CD Fire Planning
Park Board Public Works Legal Police
Planning Comm. Other Public Works Human Resources
Information Services
Action:
Committee Approval: Yes No
Council Approval: Yes No Call for Public Hearing ___/___/____
Referred to _________________________________ Until ____/___/____
Tabled ______________________________________ Until ___/___/____
Councilmember: Backus Staff: Coleman
Meeting Date: June 20, 2011 Item Number:
2
Monthly Financial Report April 2011
General Fund 2010
Summary of Sources and Uses
Annual Budget YTD Budget YTD Actual YTD Actual Amount Percentage
OPERATING REVENUES
Property Tax 12,022,340 5,110,300 5,696,123 5,331,029 585,823 11.5%
Sales Tax (1)14,295,000 4,804,600 4,783,335 4,777,095 (21,265) -0.4%
Sales Tax - Annexation Credit 1,356,600 446,500 472,668 444,655 26,168 5.9%
Criminal Justice Sales Tax 1,177,600 393,600 423,986 413,846 30,386 7.7%
Brokered Natural Gas Tax 260,000 111,300 140,030 111,211 28,730 25.8%
City Utilities Tax 2,522,800 840,400 757,270 773,918 (83,130) -9.9%
Admissions Tax 350,000 140,500 115,159 135,598 (25,341) -18.0%
Electric Tax 2,850,000 1,533,200 1,678,394 1,586,935 145,194 9.5%
Natural Gas Tax 1,270,410 834,200 728,141 633,305 (106,059) -12.7%
Cable TV Franchise Fee 689,800 343,200 403,943 387,036 60,743 17.7%
Cable TV Franchise Fee - Capital 75,000 37,000 31,983 - (5,017) -13.6%
Telephone Tax 1,972,900 564,600 659,919 619,696 95,319 16.9%
Garbage Tax (external)150,000 47,400 39,926 50,481 (7,474) -15.8%
Leasehold Excise Tax 45,000 19,900 12,346 10,397 (7,554) -38.0%
Gambling Excise Tax 326,500 147,000 68,531 171,572 (78,469) -53.4%
Business License Fees 200,000 76,900 94,275 16,261 17,375 22.6%
Building Permits 700,000 192,500 257,926 226,123 65,426 34.0%
Other Licenses & Permits 229,000 70,100 94,214 95,000 24,114 34.4%
Intergovernmental (Grants, etc)4,031,055 1,259,830 1,293,327 1,425,708 33,497 2.7%
Charges for Services:
General Government Services 64,600 23,700 28,797 33,398 5,097 21.5%
Public Safety 210,000 78,800 81,244 84,599 2,444 3.1%
Development Services Fees 627,000 200,500 122,584 205,098 (77,916) -38.9%
Culture and Recreation 877,500 341,000 296,223 327,684 (44,777) -13.1%
Fines and Forfeits 2,208,500 801,200 763,412 952,565 (37,788) -4.7%
Interests and Other Earnings 110,000 44,000 23,586 45,665 (20,414) -46.4%
Rents, Leases and Concessions 315,000 113,200 144,673 115,927 31,473 27.8%
Contributions and Donations 17,000 4,500 11,706 18,243 7,206 160.1%
Other Miscellaneous 46,200 28,300 20,095 132,326 (8,205) -29.0%
Transfers In 1,079,468 78,500 78,439 17,000 (61) -0.1%
Insurance Recoveries- Capital & Operating 25,000 8,300 63,536 29,533 55,236 665.5%
Total Operating Revenues 50,104,273 18,695,030 19,385,792 19,171,904 690,762 3.7%
Operating Expenditures
Council & Mayor 848,420 302,820 244,989 220,390 57,831 19.1%
Municipal Court & Probation 3,269,460 1,031,160 942,378 846,580 88,782 8.6%
Human Resources 806,510 264,710 251,690 221,056 13,020 4.9%
Finance 1,147,630 378,330 398,909 354,538 (20,579) -5.4%
City Attorney 1,640,480 572,580 557,778 485,775 14,802 2.6%
Planning 3,685,460 1,294,960 1,132,616 1,057,811 162,344 12.5%
Community & Human Services 1,088,430 345,730 341,797 277,652 3,933 1.1%
Jail - SCORE 6,087,470 1,899,170 450,518 - 1,448,652 76.3%
Police 19,767,290 6,278,000 5,883,231 6,725,467 394,769 6.3%
Engineering 2,380,410 796,410 724,849 808,432 71,561 9.0%
Parks and Recreation 7,307,740 2,378,440 2,163,455 2,108,276 214,985 9.0%
Streets 3,165,960 1,043,160 819,133 839,616 224,027 21.5%
Non-Departmental 4,699,500 1,040,700 633,361 1,195,777 407,339 39.1%
Total Operating Expenditures 55,894,760 17,626,170 14,544,704 15,141,370 3,081,466 17.5%
2011 2011 YTD Budget vs. Actual
Favorable (Unfavorable)
(1) The anticipated Streamlined Sales Tax for 2011 is $1,965,470. The year to date actual sales tax amount is adjusted
to include $498,293 SST Mitigation the City received from the State for the 1st quarter of 2011 and $163,789 estimated
for April.
Overview
This financial overview reflects the City’s overall financial position for the fiscal year through
April 30, 2011. The report represents financial data available as of May 25, 2011. The budgeted
year to date revenues and operating expenses are primarily based on the collection/disbursement
average for the same period of the two prior years. The table on this page summarizes the
General Fund revenues and expenditures.
3
Monthly Financial Report April 2011
At the end of April, General Fund revenues totaled $19.4 million and is slightly higher compared
to the same period of 2010. General Fund revenue highlights include:
- Property taxes totaled $5.7 million and reflect the first half 2011 property tax payments
and compare to $5.3 million collected the same period last year.
- Sales taxes totaled $4.8 million, slightly above collections for the same period last year.
Review of sales tax activity by sector show construction continues to remain weak,
consistent with regional and national economic trends.
- Developmental service fees, culture and recreational charges for services and fines and
penalties, primarily from photo enforcement showed declines over the previous year.
General Fund expenses at the end of April totaled $14.5 million compared to 15.1 million for
same period 2010. When compared to budget, General Fund expenses were 17.5% below
expectations, highlights as follows:
- Timing of intergovernmental payments for SCORE accounted for the majority of the
variance against budget. The February and March billings were received and paid in May
and the April billing is in process and will be paid in June. It is anticipated this line item
will be more in line with budget by next quarter.
- Streets expenditures was below budget due to pavement marking maintenance expense
that is typically spent later in the year.
- Non departmental was below budget primarily due to unspent budget for retirement
benefits, debt service payments, SCORE start up transition costs and transfers out that are
anticipated to be in later periods.
Revenues
The combined total of property tax, sales/use tax, utility tax, gambling, and admissions tax
represents 82.5% of all resources supporting general governmental activities. The following
section provides detail information on property and sales taxes.
Property Tax
Year to date collection at the end of April is $5.7 million, reflecting the majority of the first half
2011 property tax payments, and is slightly higher than targeted revenues. The majority of
property tax revenues are collected during the months of April and October, coinciding with the
due date for County property tax billings.
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Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecMillionsProperty Taxes
2011 budget
2011 actual to date
2010 actual
4
Monthly Financial Report April 2011
Sales Tax
Year to date sales tax revenue including Streamlined Sales Tax Mitigation of $498,293 received
for the 1st quarter plus $163,789 estimated for April totaled $4.8 million, slightly above 2010
actuals and the current YTD budget. Total estimated Streamlined Sales Tax Mitigation for 2011 is
$1,965,470 but the actual amount the City will receive from the State is reduced by taxes
received from companies that have voluntarily complied with the new destination based sales
tax.
Review of sales tax returns by SIC sector indicate continued improvement in nearly all sectors of
the local economy, reflecting the broader economic conditions of the region and nation.
Continued weakness was noted in the construction sector. While there is some strengthening of
the general economy, concerns over higher food and energy prices and unemployment continue
to cast concerns over the pace of the economic recovery in the short term.
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Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecMillionsSales & Use Tax
2011 budget
2011 actual to date
2010 actual
*Includes Sales Tax Mitigation prorated monthly.
5
Monthly Financial Report April 2011
The following table breaks out the City’s base sales tax excluding Criminal Justice, Annexation
Credit and Streamlined Sales Tax Mitigation by major business sectors.
2010 2011
Component Group Actual Actual Amount Percentage
New Construction 417,511 395,096 (22,415) -5.4%
Manufacturing 125,512 221,315 95,803 76.3%
Transportation & Warehousing 8,936 19,115 10,179 113.9%
Wholesale Trade 358,008 399,364 41,356 11.6%
Automotive 763,614 856,909 93,295 12.2%
Retail Trade 1,226,798 1,338,005 111,207 9.1%
Services 1,357,257 905,318 (451,939) -33.3%
Miscellaneous 68,303 22,559 (45,744) -67.0%
YTD Total 4,325,939 4,157,681 (168,258) -3.9%
Year to Date through April
Comparison of Sales Tax Collections by SIC Group
Change from 2010
Utility Tax
This revenue source consists of City inter-fund utility taxes (Water, Sewer, Storm and Solid Waste)
and external utility taxes (Electric, Natural gas, Telephone and Solid Waste). Year to date utility
tax revenue is in line with expectations and totaled $3.9 million or 5.4% more than 2010, due
primarily to higher than anticipated revenues from the electric and telephone utility taxes.
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Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecMillionsUtility Tax
2011 budget
2011 actual to date
2010 actual
6
Monthly Financial Report April 2011
The following table presents utility tax collections by source:
2010 2011 2011
Month Actual Budget Actual Amount Percentage Amount Percentage
City Interfund Utility Taxes 773,918 840,400 757,270 (16,647) -2.2% (83,130) -9.9%
Electric 1,586,935 1,533,200 1,678,394 91,459 5.8% 145,194 9.5%
Natural Gas 633,305 834,200 728,141 94,836 15.0% (106,059) -12.7%
Telephone 619,696 564,600 659,919 40,223 6.5% 95,319 16.9%
Solid Waste 50,481 47,400 39,926 (10,555) -20.9% (7,474) -15.8%
YTD Total 3,664,334 3,819,800 3,863,650 199,315 5.4% 43,850 1.1%
Annual Total 8,591,258 8,766,110
Utilty Tax by Type
Year to Date through April
2011 vs. 2010 2011 vs. Budget
Cable TV Franchise Fees are received quarterly and are shown on the table below. Year to date
revenues total $403,943 and are 4.4% greater than 2010 for the same period and 17.7% greater
than the 2011 year to date budget of $343,200.
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1st Quarter 2nd Quarter 3rd Quarter 4th QuarterThousandsCable TV Franchise Fee
2011 budget
2011 actual to date
2010 actual
Licenses and Permits
This revenue source is comprised of business licenses, building permits, plumbing, electric and
other licenses and permit fees. At the end of April, the City has collected 39.5% of the annual
projected revenue from licenses and permits. Building permit fees and Business licenses make up
80% of the annual budgeted revenue in this category.
Total building permit revenues at the end of April were $257,926; this was $65.4K or 34% more
than budgeted year to date revenues in 2011.
7
Monthly Financial Report April 2011
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Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecThousandsBuilding Permits
2011 budget
2011 actual to date
2010 actual
Business License revenues at the end of April were $78K more than 2010 and $17.4K or 22.6%
more than the 2011 year to date budget. Revenues are higher compared to 2010 for the same
period due to the change in timing of payments. In prior years, payments received mid year
were for a 12 month period. In contrast, starting July 2010, these payments were only for the
last 6 months of the year. Business license fees were billed again in December to cover a full year
in 2011.
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Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecThousandsBusiness License
2011 budget
2011 actual to date
2010 actual
8
Monthly Financial Report April 2011
Intergovernmental
Revenues in this category include Grants (Direct & Indirect Federal, State and Local), State shared
revenues and compact revenue from the Muckleshoot Indian Tribe. At the end of April
intergovernmental revenues were 9.3% less than 2010 and 2.7% more than budget mainly due
to the timing of federal grant proceeds from the US Department of Justice American Recovery
and Reinvestment Act Community Oriented Policing Services program.
2010 2011 2011
Revenue Actual Budget Actual % Change % Change
Federal Grants 131,810 122,000 5,951 -95.5%-95.1%
State Grants 19,656 1,800 32,851 67.1% 1725.1%
Interlocal Grants 52,592 29,800 19,817 -62.3%-33.5%
State Shared Revenue 853,419 877,130 887,743 4.0%1.2%
Muckleshoot Casino Emerg. 368,231 229,100 335,525 -8.9%46.5%
Intergovernmental Service - - 11,440 N/A N/A
YTD Total 1,425,708 1,259,830 1,293,327 -9.3%2.7%
Annual Total 4,089,803 4,031,055
YTD %35%31% 32%
Intergovernmental
Year to Date through April
2011 vs. 2010 2011 vs. Budget
Total state shared revenues are $34.3K greater than the same period 2010 due to the new
revenue source for Criminal Justice-High crime. Based on crime statistics, starting July 2010 the
City began receiving this revenue source which partially offset a decrease in revenues from
Criminal Justice –Population. At the end of April, total state shared revenues are in line with the
budget, exceeding budgeted projections by 1.2%.
2010 2011 2011
Revenue Actual Budget Actual Amount Percentage Amount Percentage
Trial Court Improvements 11,360 6,800 11,234 (126) -1.1% 4,434 65.21%
Court Interpreter Program - 3,300 4,931 4,931 N/A 1,631 49.43%
Motor Vehicle Fuel Tax 452,834 449,100 457,062 4,228 0.9% 7,962 1.8%
Criminal Justice -High Crime - 74,300 75,325 75,325 N/A 1,025 1.38%
Criminal Justice -Population 34,040 9,400 7,690 (26,350) -77.4% (1,710) -18.2%
Criminal Justice -Spec. Prog. 28,009 27,100 29,045 1,036 3.7% 1,945 7.2%
State DUI 6,288 2,000 6,262 (26) -0.4% 4,262 213.1%
Fire Insurance Premium Tax - - - - N/A - N/A
Liquor Excise Tax 167,432 172,400 169,003 1,571 0.9% (3,397) -2.0%
Liquor Profits 153,457 132,730 127,191 (26,266) -17.1% (5,539) -4.17%
YTD Total 853,419 877,130 887,743 34,323 4.0% 10,613 1.2%
Annual Total 2,594,749 2,624,945
State Shared Revenues
Year to Date through April
2011 vs. 2010 2011 vs. Budget
9
Monthly Financial Report April 2011
Charges for Services
This revenue source consists of general governmental services, public safety, development service
fees and cultural & recreation fees. Development services and culture & recreation revenues make
up approximately 85% of the $1.78 million annual budget for this category and are presented
following the Charges for Service table below. At the end of April, revenue from charges for
services totaled $529K, and were 17.9% below budget, due to lower than anticipated
development services charges and culture and recreation charges.
General government services include passport services, administrative fees, court duplicating costs
and sale of maps & publications. This income category is low compared to 2010 primarily due to
a decrease in court related administrative fees and passport services revenue.
Public Safety consists of law enforcement services, probation and prisoner lodging fees; overall
this revenue source is $2.4K or 3.1% more than budget at the end of April due to increased
receipts from probation fees.
2010 2011 2011
Revenue Actual Budget Actual Amount Percentage Amount Percentage
General Government 33,398 23,700 28,797 (4,601) -13.78% 5,097 21.51%
Public Safety 84,598 78,800 81,244 (3,354) -4.0% 2,444 3.1%
Development Services 205,098 200,500 122,584 (82,514) -40.2% (77,916) -38.9%
Culture & Recreation 327,684 341,000 296,223 (31,461) -9.6% (44,777) -13.1%
YTD Total 650,779 644,000 528,848 (121,931) -18.7% (115,152) -17.9%
Annual Total 1,861,204 1,779,100
Charges for Services by Type
Year to Date through April
2011 vs. 2010 2011 vs. Budget
Development services include engineering fees, zoning & subdivision fees and plan check fees. At
the end of April, revenues totaled $122.6K and is 40.2% less than the same period in 2010.
Total development service revenue is less than the budget for the year by $77.9K or 38.9%
primarily due to lower than anticipated engineering and plan check fees revenue.
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Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecThousandsDevelopment Service Fees
2011 budget
2011 actual to date
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10
Monthly Financial Report April 2011
Culture & Recreation revenues consist of theater ticket sales, recreational classes, arts commission
and senior citizen program fees. Total revenue at the end of April shows a decrease of $31.5K
from 2010 and $44.8K less than 2011 annual budget primarily due to lower recreational classes
revenue from adult health & fitness classes, adult softball program, youth camp and sports
programs.
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Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecThousandsCulture & Recreation
2011 budget
2011 actual to date
2010 actual
Fines & Penalties
This revenue category includes traffic and parking infraction penalties, criminal (traffic, non traffic
and costs) false alarm and shopping cart fines. Year to date, this revenue source totaled $763.4K
or $37.8K or 4.7% lower than the projected budget. The overall decrease in April is primarily
due to lower photo enforcement revenues. Revenue from the City’s photo enforcement
program account for nearly half of total revenues from this category.
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Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecMillionsFines & Penalties
2011 budget
2011 actual to date
2010 actual
11
Monthly Financial Report April 2011
2010 2011 2011
Month Actual Budget Actual Amount Percentage Amount Percentage
Civil Penalties 8,390 5,000 6,771 (1,619) -19.3% 1,771 35.4%
Civil Infraction Penalties 295,166 203,500 247,949 (47,217) -16.0% 44,449 21.8%
Red Light Photo Enforcement 478,184 442,100 345,277 (132,907) -27.8% (96,823) -21.9%
Parking Infractions 68,053 58,200 59,251 (8,802) -12.9% 1,051 1.8%
Criminal Traffic Misdemeanor 31,624 37,700 30,048 (1,576) -5.0% (7,652) -20.3%
Criminal Non-Traffic Fines 43,928 36,300 32,108 (11,820) -26.9% (4,192) -11.5%
Criminal Costs 3,980 4,500 5,006 1,025 25.8% 506 11.2%
Non-Court Fines & Penalties 23,238 13,900 37,002 13,763 59.2% 23,102 166.2%
YTD Total 952,565 801,200 763,412 (189,153) -19.9% (37,788) -4.7%
Annual Total 2,472,411 2,208,500
Fines & Forfeits by Type
Year to Date through April
2011 vs. 2010 2011 vs. Budget
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$1.2
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Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecMillionsPhoto Enforcement
2011 budget
2011 actual to date
2010 actual
Miscellaneous
This revenue source is comprised of interest and other investment earnings, rents, leases &
concessions, contributions & donations and other miscellaneous income. The 2011 budget for this
revenue category is $488,200 and interest & investment and rentals & leases make up 88% of
the annual budget. Decreased interest revenue reflects impact of timing of investment activity
and the decline in the financial markets; the Local Government Investment Pool interest has
decreased from 0.28% in January 2010 to 0.17% in April 2011.
12
Monthly Financial Report April 2011
The increase in rentals & leases compared to 2010 revenue and 2011 year to date budget is
primarily due to revenue from park facility rental deposits. Other miscellaneous revenue is
budgeted conservatively and year to date 2010 receipts are higher than 2011 for the same period
because of a $15.6K reimbursement for General Fund in January 2010.
2010 2011 2011
Month Actual Budget Actual Amount Percentage Amount Percentage
Interest & Investments 45,665 44,000 23,586 (22,079) -48.4% (20,414) -46.4%
Rents & Leases 115,927 113,200 144,673 28,746 24.8% 31,473 27.8%
Contributions & Donations 18,243 4,500 11,706 (6,537) -35.8% 7,206 160.1%
Other Miscellaneous Revenue 132,326 28,300 20,095 (112,231) -84.8% (8,205) -29.0%
YTD Total 312,161 190,000 200,060 (112,101) -35.9% 10,060 5.3%
Annual Total 899,378 488,200
Miscellaneous Revenues by Type
Year to Date through April
2011 vs. 2010 2011 vs. Budget
Real Estate Excise Tax
The Real Estate Excise Tax (REET) revenue is received in the Capital Improvement Projects Fund
and is used for governmental capital projects. Total revenue at the end of April is $253.5K or
95.5% more than 2010 and $236.1K or 83.4% more than budget. This sharp increase in REET
revenue is primarily due to a large commercial property transaction that occurred in March along
with the continuing recovery in the residential and commercial markets.
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Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecMillionsReal Estate Excise Tax
2011 budget
2011 actual to date
2010 actual
13
Monthly Financial Report April 2011
Enterprise Funds
The table below provides an analysis of all City Enterprise funds and shows the year to date
revenues and expenditures for each enterprise fund.
Water Sewer Storm Solid Waste Airport Cemetery Golf
OPERATING REVENUES
Charges for services 2,464,607 5,236,030 2,262,642 2,967,625 8,640 250,090 190,559
Rents, Leases, Concessions & Other - 276 276 - 207,711 419 15,294
TOTAL OPERATING REVENUES 2,464,607 5,236,306 2,262,918 2,967,625 216,351 250,509 205,853
OPERATING EXPENSES:
Administration 789,566 632,340 849,411 244,012 199,895 93,394 78,576
Operations & Maintenance 1,276,485 4,994,794 813,573 2,286,130 47 206,529 318,298
Depreciation & Amortization 697,894 547,566 437,139 6,273 140,378 19,540 109,408
TOTAL OPERATING EXPENSES 2,763,945 6,174,699 2,100,122 2,536,415 340,320 319,463 506,282
OPERATING INCOME (LOSS)(299,338) (938,393) 162,796 431,210 (123,969) (68,954) (300,429)
NON-OPERATING REVENUES & EXPENSES
Interest Revenue 12,579 25,207 5,261 316 793 87 33
Other Non Operating Revenue 111 - 648 7,759 300 5 -
Other Non Operating Expense - - - - - - -
TOTAL NON-OPERATING REVENUES (EXPENSES) 12,690 25,207 5,909 8,075 1,093 92 33
(286,648) (913,186) 168,704 439,285 (122,876) (68,862) (300,396)
Contributions 77,568 98,839 116,706 - - - -
Transfers In
Transfers Out (50,000) (50,000) (96,000) - - 31,300 6,904
TOTAL CONTRIBUTIONS & TRANSFERS 27,568 48,839 20,706 - - 31,300 6,904
CHANGE IN FUND BALANCE (259,080) (864,347) 189,411 439,285 (122,876) (37,562) (293,492)
BEGINNING FUND BALANCE, January 1, 2011 59,674,990 67,629,064 40,956,334 923,810 9,705,318 865,780 5,210,529
ENDING FUND BALANCE, April 30, 2011 59,415,910 66,764,717 41,145,745 1,363,095 9,582,442 828,218 4,917,037
INCOME (LOSS) BEFORE CONTRIBUTIONS &
TRANSFERS
14
Monthly Financial Report April 2011
The Water utility incurred an operating loss at the end of April, reflecting a decline in water sales.
Water sales totaled $2.5 million and compare to $2.7 million for the same period last year. The
decline in water sales is due to the loss of Covington as a wholesale water customer and a
general decline in water usage among other City customer classes. In addition a $130K
adjustment reducing revenue was posted in April to correct prior years’ consumption. Despite a
rate increase of 7% effective January 1, 2011, the changes noted above more than offset the
increase in rates. While water sales are expected to increase as the weather warms, overall sales
for 2011 will likely remain below 2010 levels for the remainder of the year. Finance plans to
prepare an updated financial analysis of the Water utility and rate revenue sufficiency by summer
or early fall.
‐
200,000
400,000
600,000
800,000
1,000,000
1,200,000
Water Revenues ($) vs Water Sold (ccf)
2010 ‐Present
2010 Water Sales ($)
2011 Water Sales ($)
2010 Water Sold (ccf)
2011 Water Sold (ccf)
Year to date operating revenues for Sewer were low due to $337.7K adjustment in April to
correct prior year’s consumption reads. April operating expenses for the Sewer utility reflect the
timing of payments to King County for Metro sewer treatment services. Year to date Metro
billings for 2011 totaled $4.2M and compares to $3.4M for the same period 2010. Billings for
sewer treatment services are based on the average number of residential customer equivalents for
the previous 12 months and include adjustments for Boeing and GSA during 2010. Billings for
sewer treatment services are not expected to normalize until the 3rd quarter 2011 when the effects
of the timing of these adjustments are worked through the Metro billing cycle.
Golf Course operating revenues totaled $205.9K at the end of April 2011 and compares to
$286.3K for the same period 2010, due to a decline in the level of golfing activity (as a result of
the current economic conditions) coupled with below average weather conditions. Year to date
the Golf Course has experienced lower rounds played as it has rained 41 of the 52 weekend days
throughout this period along with record breaking cold temperatures during the month of April.
While revenues are anticipated to increase during the spring and summer months as playing
conditions become more favorable, operating losses at the Golf Course are expected to continue
for the remainder of 2011.
15
Monthly Financial Report April 2011
$0
$50
$100
$150
$200
$250
$300
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecThousandsGolf Course Operating Revenues
2011 actual to date
2010 actual
16
Monthly Financial Report April 2011
Internal Service Funds
The table below provides an analysis of all City Internal Service funds and shows the year to date
revenues and expenditures for each fund.
Information Equipment
Insurance Facilities Services Rental
OPERATING REVENUES:
Interfund Charges for services - 1,294,432 1,386,476 947,577
Rents, Leases, Concessions & Other - 12,899 8,096 -
TOTAL OPERATING REVENUES - 1,307,331 1,394,572 947,577
OPERATING EXPENSES:
Administration 763,047 - 82,200 205,080
Operations & Maintenance - 647,663 1,163,657 401,634
Depreciation & Amortization - - 157,588 311,456
TOTAL OPERATING EXPENSES 763,047 647,663 1,403,445 918,170
OPERATING INCOME (LOSS)(763,047) 659,668 (8,873) 29,407
NON-OPERATING REVENUES & EXPENSES
Interest Revenue 994 769 2,787 4,021
Other Non Operating Revenue - 32,439 - 276
Other Non Operating Expense - - - -
TOTAL NON-OPERATING REVENUES (EXPENSES)994 33,208 2,787 4,297
INCOME (LOSS) BEFORE CONTRIBUTIONS & TRANSFERS (762,052) 692,876 (6,086) 33,704
Contributions - - -
Transfers In
Transfers Out - (250,000) (7,000)
TOTAL CONTRIBUTIONS & TRANSFERS - (250,000) - (7,000)
CHANGE IN FUND BALANCE (762,052) 442,876 (6,086) 26,704
BEGINNING FUND BALANCE, January 1, 2011 2,366,832 661,686 4,918,922 10,611,968
ENDING FUND BALANCE, April 30, 2011 1,604,780 1,104,563 4,912,836 10,638,672
The Insurance Fund expenses include $708,500 balance of the annual insurance payment. This
amount will be decreasing throughout the year as the expense is being allocated to various
departments and funds on a monthly journal entry.
The Facilities Fund revenues of $1,294,432 cover expenses totaling 897,663 that include
$250,000 in transfers out for debt service related to the annex building. Expenses are low
compared to budget due to professional services and repairs and maintenance that are
anticipated to be spent later in the year.
Equipment rental fund balance of $10,638,672 includes approximately $4.5 M in fixed assets net
of depreciation which primarily consists of the City’s fleet vehicles.
17
Monthly Financial Report April 2011
Contact Information
This report is prepared by the Finance Department. Additional financial information can also be
viewed at our website: http://www.auburnwa.gov/. For any questions about the report please
contact us at mchaw@auburnwa.gov or scoleman@auburnwa.gov.
18
SALES TAX SUMMARY
APRIL 2011 SALES TAX DISTRIBUTIONS (FOR FEBRUARY 2011 RETAIL ACTIVITY)
10 Total 10 YTD 11 YTD YTD 10 Total 10 YTD 11 YTD YTD
NAICS CONSTRUCTION (NOV-OCT)(NOV-FEB)(NOV-FEB)% Diff NAICS AUTOMOTIVE (NOV-OCT)(NOV-FEB)(NOV-FEB)% Diff
236 Construction of Buildings 607,355 189,852 160,283 -15.6%441 Motor Vehicle and Parts Dealer 2,346,944 697,778 786,913 12.8%
237 Heavy and Civil Construction 121,822 50,871 29,489 -42.0%447 Gasoline Stations 210,961 65,836 69,996 6.3%
238 Specialty Trade Contractors 594,645 176,788 205,324 16.1%TOTAL AUTOMOTIVE 2,557,905$ 763,614$ 856,909$
TOTAL CONSTRUCTION 1,323,822$ 417,511$ 395,096$ Overall Change from Previous Year 93,296$ 12.2%
Overall Change from Previous Year (22,415)$ -5.4%
10 Total 10 YTD 11 YTD YTD
10 Total 10 YTD 11 YTD YTD NAICS RETAIL TRADE (NOV-OCT)(NOV-FEB)(NOV-FEB)% Diff
NAICS MANUFACTURING (NOV-OCT)(NOV-FEB)(NOV-FEB)% Diff 442 Furniture and Home Furnishings 193,852 69,230 72,770 5.1%
311 Food Manufacturing 2,062 545 665 22.1%443 Electronics and Appliances 120,703 42,237 46,114 9.2%
312 Beverage and Tobacco Products 3,610 1,153 1,219 5.7%444 Building Material and Garden 389,137 112,430 100,114 -11.0%
313 Textile Mills 121 38 74 93.2%445 Food and Beverage Stores 351,329 111,459 109,613 -1.7%
314 Textile Product Mills 1,682 501 492 -1.7%446 Health and Personal Care Store 143,820 51,780 52,542 1.5%
315 Apparel Manufacturing 2,202 640 2,366 270.0%448 Clothing and Accessories 730,903 255,954 270,213 5.6%
316 Leather and Allied Products 45 17 12 -29.8%451 Sporting Goods, Hobby, Books 116,615 45,087 48,774 8.2%
321 Wood Product Manufacturing 30,078 14,345 7,726 -46.1%452 General Merchandise Stores 801,501 295,248 382,064 29.4%
322 Paper Manufacturing 10,842 3,731 4,855 30.1%453 Miscellaneous Store Retailers 504,303 162,958 167,036 2.5%
323 Printing and Related Support 43,243 15,444 15,485 0.3%454 Nonstore Retailers 234,807 80,416 88,764 10.4%
324 Petroleum and Coal Products 3,320 574 905 57.7%TOTAL RETAIL TRADE 3,586,970$ 1,226,798$ 1,338,005$
325 Chemical Manufacturing 8,684 1,704 1,784 4.7%Overall Change from Previous Year 111,207$ 9.1%
326 Plastics and Rubber Products 9,254 3,053 3,537 15.9%
327 Nonmetallic Mineral Products 19,031 4,273 3,411 -20.2%
331 Primary Metal Manufacturing 189 30 39 31.2%10 Total 10 YTD 11 YTD YTD
332 Fabricated Metal Product Manuf 17,110 6,271 7,394 17.9%NAICS SERVICES (NOV-OCT)(NOV-FEB)(NOV-FEB)% Diff
333 Machinery Manufacturing 13,445 4,910 4,683 -4.6%51*Information 978,115 586,910 135,414 -76.9%
334 Computer and Electronic Produc 12,773 2,855 4,664 63.4%52*Finance and Insurance 68,357 23,862 20,334 -14.8%
335 Electric Equipment, Appliances 192 51 84 65.0%53*Real Estate, Rental, Leasing 288,013 90,616 94,461 4.2%
336 Transportation Equipment Man 186,247 50,006 148,907 197.8%541 Professional, Scientific, Tech 188,696 70,887 60,457 -14.7%
337 Furniture and Related Products 12,784 4,465 3,139 -29.7%551 Company Management 165 59 46 -21.8%
339 Miscellaneous Manufacturing 27,899 10,907 9,874 -9.5%56*Admin. Supp., Remed Svcs 234,384 68,897 82,501 19.7%
TOTAL MANUFACTURING 404,813$ 125,512$ 221,315$ 611 Educational Services 55,877 15,063 15,837 5.1%
Overall Change from Previous Year 95,803$ 76.3%62*Health Care Social Assistannce 37,475 18,865 5,046 -73.3%
71*Arts and Entertainment 153,918 74,211 76,225 2.7%
72*Accomodation and Food Svcs 806,733 253,129 258,362 2.1%
10 Total 10 YTD 11 YTD YTD 81*Other Services 385,105 128,819 127,873 -0.7%
NAICS TRANSPORTATION AND WAREHOUSING (NOV-OCT)(NOV-FEB)(NOV-FEB)% Diff 92*Public Administration 109,678 25,939 28,761 10.9%
481 Air Transportation - - 24 N/A TOTAL SERVICES 3,306,516$ 1,357,257$ 905,318$
482 Rail Transportation 4,500 949 6,016 534.1%Overall Change from Previous Year (451,939)$ -33.3%
484 Truck Transportation 7,660 2,287 5,707 149.6%
485 Transit and Ground Passengers 57 52 39 -25.0%
488 Transportation Support 13,207 4,105 5,587 36.1%10 Total 10 YTD 11 YTD YTD
491 Postal Service 194 73 75 2.5%NAICS MISCELLANEOUS (NOV-OCT)(NOV-FEB)(NOV-FEB)% Diff
492 Couriers and Messengers 993 413 616 49.0%000 Unknown 754 - - N/A
493 Warehousing and Storage 2,574 1,058 1,051 -0.6%111-115 Agriculture, Forestry, Fishing 2,839 1,024 1,906 86.1%
TOTAL TRANSPORTATION 29,185$ 8,936$ 19,115$ 211-221 Mining & Utilities 22,364 5,294 4,372 -17.4%
Overall Change from Previous Year 10,179$ 113.9%999 Unclassifiable Establishments 102,180 61,985 16,281 -73.7%
TOTAL SERVICES 128,138$ 68,303$ 22,559$
Overall Change from Previous Year (45,743)$ -67.0%
10 Total 10 YTD 11 YTD YTD
NAICS WHOLESALE TRADE (NOV-OCT)(NOV-FEB)(NOV-FEB)% Diff
423 Wholesale Trade, Durable Goods 1,020,802 309,426 346,446 12.0%GRAND TOTAL 12,522,789$ 4,325,939$ 4,157,682$
424 Wholesale Trade, Nondurable 160,317 47,964 51,178 6.7%Overall Change from Previous Year (168,257)$ -3.9%
425 Wholesale Electronic Markets 4,320 618 1,741 181.6%
TOTAL WHOLESALE 1,185,440$ 358,008$ 399,364$
Overall Change from Previous Year 41,356$ 11.6%
April 26 2011 file:Monthly Sales Tax Report.xls
Prepared by Auburn Financial Planning
19
Investment Purchase Purchase Maturity Yield to
Type Date Price Date Maturity
State Investment Pool Various 87,981,599$ Various 0.17%
KeyBank Money Market Various 12,397,381 Various 0.10%
US Treasury 05/04/1990 57,750 05/15/2016 5.72%
FHLB 2/2/2009 1,000,000.00 8/2/2011 1.840%
FHLB 3/28/2011 2,000,000.00 3/28/2014 1.300%
FHLB 3/28/2011 2,000,000.00 6/28/2013 1.000%
FNMA 5/13/2010 1,725,000.00 11/13/2012 1.550%
FHLB 5/20/2010 2,500,000.00 2/20/2013 1.625%
FHLMC 6/24/2010 2,000,000.00 12/24/2013 1.750%
FNMA 6/30/2010 1,000,000.00 12/30/2013 1.750%
Total Cash & Investments 112,661,730$ 0.312%
Investment Mix % of Total
State Investment Pool 78.1% Current 6-month treasury rate 0.12%
KeyBank Money Market 11.0%Current State Pool rate 0.17%
US Treasury 0.1%KeyBank Money Market 0.10%
FHLB 6.7%Blended Auburn rate 0.31%
FNMA 2.4%
FHLMC 1.8%
100.0%
City of Auburn
Investment Portfolio Summary
As of April 30, 2011
Summary
20