HomeMy WebLinkAboutJune 2011
AGENDA BILL APPROVAL FORM
Agenda Subject: June 2011 Financial Report
Date: 08/15/2011
Department: Finance
Attachments: June 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 June 2011 status report highlights City revenues and expenditures and is based on financial data
available as of July 27, 2011. Sales tax reported in June is for business activities that occurred in April
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 June, General Fund revenue collections totaled $26.1 million, and compares to year-to-
date budget of $25.1 million and were sufficient to meet expenses of $24.1 million. Total General Fund
revenues for the City at the end of June are $966.8K higher than budget due to relatively stronger than
anticipated collections in property and sales taxes, electric utility taxes and building permit fees.
The City’s sales taxes totaled $7.3 million and are slightly higher than last year. Improvement in retail
activity was noted in all areas with the exception of services and construction which remain weak.
Consumer concerns over energy prices and high unemployment rate remain and are expected to
temporarily slow the pace of the economic recovery.
Expenditures for the General Fund were $2.8 million below budget at the end of June. This is primarily
due to the timing of payments for SCORE, debt service payments and under expenditures in professional
services.
Enterprise Funds:
The City’s eight enterprise funds account for operations with revenues primarily provided from user fees,
charges or contracts for services.
At the end of June the Water fund 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.
1
Agenda Subject: June 2011 Financial Report
Date: 8/15/2011
Although Golf Course revenues for the month have improved compared to June 2010; year to date
revenues are still below projections due to the current economic climate and lower than average weather
conditions that have impacted the number of rounds played during the winter and spring 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 June, revenue from charges assessed to internal client departments was sufficient to
meet expenses. Year to date expenses for the insurance fund 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 June, the City’s total value of cash and investments was $110.7 million and compares to
$113.9 million in May. The change was primarily due to the decrease in the Money Market fund to cover
current operations and capital expenses.
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: August 15, 2011 Item Number:
2
Monthly Financial Report June 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 6,229,700 6,564,742 6,607,510 335,042 5.4%
Sales Tax (1)14,295,000 7,065,000 7,348,935 7,175,203 283,935 4.0%
Sales Tax - Annexation Credit 1,356,600 660,500 717,024 666,106 56,524 8.6%
Criminal Justice Sales Tax 1,177,600 585,600 665,164 617,750 79,564 13.6%
Brokered Natural Gas Tax 260,000 156,400 190,558 160,721 34,158 21.8%
City Utilities Tax 2,522,800 1,272,800 1,175,132 1,176,160 (97,668) -7.7%
Admissions Tax 350,000 155,600 129,756 152,063 (25,844) -16.6%
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 1,972,900 979,700 1,020,467 1,048,429 40,767 4.2%
Garbage Tax (external)150,000 75,100 73,328 76,922 (1,772) -2.4%
Leasehold Excise Tax 45,000 28,700 20,254 19,858 (8,446) -29.4%
Gambling Excise Tax 326,500 183,200 119,339 178,662 (63,861) -34.9%
Business License Fees 200,000 86,600 107,957 40,418 21,357 24.7%
Building Permits 700,000 348,500 513,599 397,068 165,099 47.4%
Other Licenses & Permits 229,000 118,800 163,709 184,837 44,909 37.8%
Intergovernmental (Grants, etc)4,031,055 1,895,130 1,921,936 1,987,902 26,806 1.4%
Charges for Services:
General Government Services 64,600 34,500 42,166 50,184 7,666 22.2%
Public Safety 210,000 116,800 128,697 124,583 11,897 10.2%
Development Services Fees 627,000 289,000 248,381 261,443 (40,619) -14.1%
Culture and Recreation 877,500 520,100 471,339 507,167 (48,761) -9.4%
Fines and Forfeits 2,208,500 1,194,700 1,122,959 1,385,745 (71,741) -6.0%
Interests and Other Earnings 110,000 63,100 39,829 77,032 (23,271) -36.9%
Rents, Leases and Concessions 315,000 170,600 220,997 168,822 50,397 29.5%
Contributions and Donations 17,900 7,900 25,163 31,576 17,263 218.5%
Other Miscellaneous 46,200 32,800 39,064 133,846 6,264 19.1%
Transfers In 1,079,468 78,500 78,439 17,000 (61) -0.1%
Insurance Recoveries- Capital & Operating 25,000 12,500 84,855 24,266 72,355 578.8%
Total Operating Revenues 50,105,173 25,109,430 26,076,251 25,878,550 966,821 3.9%
Operating Expenditures
Council & Mayor 848,420 437,620 380,126 333,574 57,494 13.1%
Municipal Court & Probation 3,269,460 1,574,160 1,466,655 1,277,918 107,505 6.8%
Human Resources 810,660 403,260 390,451 337,018 12,809 3.2%
Finance 1,147,630 588,630 609,971 550,202 (21,341) -3.6%
City Attorney 1,640,480 886,380 805,666 844,338 80,714 9.1%
Planning 3,779,190 1,951,000 1,796,946 1,602,799 154,054 7.9%
Community & Human Services 1,088,430 515,630 469,469 430,275 46,161 9.0%
Jail - SCORE 6,087,470 2,906,770 2,463,790 - 442,980 15.2%
Police 19,767,290 9,609,000 8,747,972 10,601,680 861,028 9.0%
Engineering 2,380,410 1,169,810 1,091,559 1,206,889 78,251 6.7%
Parks and Recreation 7,307,740 3,627,740 3,409,744 3,226,066 217,996 6.0%
Streets 3,165,960 1,569,060 1,246,520 1,311,258 322,540 20.6%
Non-Departmental 4,601,620 1,698,200 1,265,904 2,013,055 432,296 25.5%
Total Operating Expenditures 55,894,760 26,937,260 24,144,774 23,735,071 2,792,486 10.4%
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 $995,195 SST Mitigation the City received from the State for the 1st and 2nd quarter of 2011.
Overview
This financial overview reflects the City’s overall financial position for the fiscal year through June
30, 2011. The report represents financial data available as of July 27, 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 June 2011
At the end of June, General Fund revenues totaled $26 million and is slightly higher compared to
the same period of 2010. General Fund revenue highlights include:
- Property taxes totaled $6.6 million and reflect the first half 2011 property tax payments
and are close to the level collected for June of last year.
- Sales taxes totaled $7.3 million, are slightly higher compared to collections for the same
period last year. Review of sales tax activity by sector show services and construction
continues to remain weak, consistent with regional and national economic trends.
However in July sales tax trends showed improvements is all sectors.
- 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 June totaled $24.1 million compared to $23.7 million for
same period 2010. When compared to budget, General Fund expenses were 10.4% below
expectations highlights as follows:
- Timing of intergovernmental payments for SCORE accounted for the majority of the
variance against budget. Currently there is over $154K in expenses for May and $145.5K
for June that will be posted in August. It is anticipated this line item will be more in line
with budget by the 3rd quarter.
- Police expenditures are low compared to budget due to timing of Valley Communications
dispatch and photo enforcement billings.
- Streets expenditures were 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
provide 80% 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 June is $6.6 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 June 2011
Sales Tax
Year to date sales tax revenue totaled $7.3 million, including Streamlined Sales Tax Mitigation of
$995,195 received for through the 2nd quarter and compares to a year-to-date budget of $7.1
million. 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 services and construction sectors. Concerns over
unemployment and housing prices remain and will affect 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 June 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 586,771 570,698 (16,073) -2.7%
Manufacturing 188,150 300,881 112,731 59.9%
Transportation & Warehousing 15,350 50,451 35,101 228.7%
Wholesale Trade 548,317 648,159 99,842 18.2%
Automotive 1,207,749 1,343,523 135,774 11.2%
Retail Trade 1,791,204 1,940,266 149,062 8.3%
Services 1,466,670 1,392,963 (73,707) -5.0%
Miscellaneous 84,485 134,788 50,303 59.5%
YTD Total 5,888,696 6,381,729 493,033 8.4%
Year to Date through June
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). Total year to date
utility tax revenue is in line with expectations, totaling $4.7 million or 3.4% more than 2010,
due primarily to higher revenues from the electric and telephone utility taxes which have offset
lower than anticipated revenues from City inter-fund, natural gas and solid waste 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 June 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 1,176,160 1,272,800 1,175,132 (1,028) -0.1% (97,668) -7.7%
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 1,048,429 979,700 1,020,467 (27,963) -2.7% 40,767 4.2%
Solid Waste 76,922 75,100 73,328 (3,594) -4.7% (1,772) -2.4%
YTD Total 4,521,751 4,695,000 4,675,462 153,710 3.4% (19,538) -0.4%
Annual Total 8,591,258 8,766,110
Utilty Tax by Type
Year to Date through June
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 June, the City has collected 69.6% 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.
7
Monthly Financial Report June 2011
Total building permit revenues at the end of June were $513,599; this was $165.1K or 47.4%
more than budgeted year to date revenues in 2011. The increase in June is primarily from
commercial and retail building alterations and construction.
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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 June were $67.5K more than 2010 and $21.4K or 24.7%
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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$50
$100
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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 June 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 June
intergovernmental revenues were 3.3% less than 2010 and 1.4% more than budget mainly due
to the timing of grant reimbursements.
2010 2011 2011
Revenue Actual Budget Actual % Change % Change
Federal Grants 190,354 177,600 125,491 -34.1%-29.3%
State Grants 52,824 5,000 46,461 -12.0% 829.2%
Interlocal Grants 96,758 50,600 3,151 -96.7%-93.8%
State Shared Revenue 1,279,736 1,310,830 1,349,223 5.4%2.9%
Muckleshoot Casino Emerg. 368,231 351,100 385,731 4.8%9.9%
Intergovernmental Service - - 11,880 N/A N/A
YTD Total 1,987,902 1,895,130 1,921,936 -3.3%1.4%
Annual Total 4,089,803 4,031,055
YTD %49% 47% 48%
Intergovernmental
Year to Date through June
2011 vs. 2010 2011 vs. Budget
Total state shared revenues are $69.5K 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 June, total state shared revenues are in line with the
budget, exceeding budgeted projections by 2.9%.
2010 2011 2011
Revenue Actual Budget Actual Amount Percentage Amount Percentage
Trial Court Improvements 11,360 14,100 11,234 (126) -1.1% (2,866) -20.33%
Court Interpreter Program - 3,300 6,643 6,643 N/A 3,343 101.30%
Motor Vehicle Fuel Tax 694,162 690,000 707,052 12,890 1.9% 17,052 2.5%
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 7,931 1,643 26.1% 5,931 296.6%
Fire Insurance Premium Tax 63,545 65,000 66,116 2,572 4.0% 1,116 1.72%
Liquor Excise Tax 167,432 172,400 169,003 1,571 0.9% (3,397) -2.0%
Liquor Profits 274,901 253,230 269,184 (5,716) -2.1% 15,954 6.30%
YTD Total 1,279,736 1,310,830 1,349,223 69,487 5.4% 38,393 2.9%
Annual Total 2,594,749 2,624,945
State Shared Revenues
Year to Date through June
2011 vs. 2010 2011 vs. Budget
9
Monthly Financial Report June 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 June, revenue from charges for
services totaled $890.6K, and was 7.3% 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 $11.9K or 10.2% more than budget at the end of June due to increased
receipts from probation fees.
2010 2011 2011
Revenue Actual Budget Actual Amount Percentage Amount Percentage
General Government 50,184 34,500 42,166 (8,018) -15.98% 7,666 22.22%
Public Safety 124,583 116,800 128,697 4,115 3.3% 11,897 10.2%
Development Services 261,443 289,000 248,381 (13,062) -5.0% (40,619) -14.1%
Culture & Recreation 507,167 520,100 471,339 (35,828) -7.1% (48,761) -9.4%
YTD Total 943,377 960,400 890,584 (52,793) -5.6% (69,816) -7.3%
Annual Total 1,861,204 1,779,100
Charges for Services by Type
Year to Date through June
2011 vs. 2010 2011 vs. Budget
Development services include engineering fees, zoning & subdivision fees and plan check fees. At
the end of June, revenues totaled $248.4K and are 5.0% less than the same period in 2010.
Total development service revenue is less than the budget for the year by $40.6K or 14.1%
primarily due to lower than anticipated engineering and zoning & subdivision fees.
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Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecThousandsDevelopment Service Fees
2011 budget
2011 actual to date
2010 actual
10
Monthly Financial Report June 2011
Culture & Recreation revenues consist of theater ticket sales, recreational classes, arts commission
and senior citizen program fees. Total revenue at the end of June shows a decrease of $35.8K
from 2010 and $48.8K less than 2011 annual budget primarily due to lower recreational class
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 $1.1M or
$71.7K or 6.0% lower than the projected budget. The overall decrease in June is primarily due
to lower photo enforcement revenues. Revenue from the City’s photo enforcement program
makes up 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 June 2011
2010 2011 2011
Month Actual Budget Actual Amount Percentage Amount Percentage
Civil Penalties 12,458 7,600 10,197 (2,261) -18.2% 2,597 34.2%
Civil Infraction Penalties 417,561 299,400 360,765 (56,797) -13.6% 61,365 20.5%
Red Light Photo Enforcement 694,128 660,600 508,385 (185,743) -26.8% (152,215) -23.0%
Parking Infractions 97,981 85,300 92,033 (5,947) -6.1% 6,733 7.9%
Criminal Traffic Misdemeanor 53,381 60,600 42,877 (10,504) -19.7% (17,723) -29.2%
Criminal Non-Traffic Fines 63,257 52,400 48,305 (14,952) -23.6% (4,095) -7.8%
Criminal Costs 6,312 6,800 7,982 1,670 26.5% 1,182 17.4%
Non-Court Fines & Penalties 40,666 22,000 52,415 11,748 28.9% 30,415 138.2%
YTD Total 1,385,745 1,194,700 1,122,959 (262,786) -19.0% (71,741) -6.0%
Annual Total 2,472,411 2,208,500
Fines & Forfeits by Type
Year to Date through June
2011 vs. 2010 2011 vs. Budget
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$1.2
$1.4
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 $489,100 and interest & investment and rentals & leases make up 87% 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 0.16% in June 2011.
12
Monthly Financial Report June 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 $95.7K reimbursement from the Crisis Clinic in March 2010.
2010 2011 2011
Month Actual Budget Actual Amount Percentage Amount Percentage
Interest & Investments 77,032 63,100 39,829 (37,203) -48.3% (23,271) -36.9%
Rents & Leases 168,822 170,600 220,997 52,175 30.9% 50,397 29.5%
Contributions & Donations 31,576 7,900 25,163 (6,413) -20.3% 17,263 218.5%
Other Miscellaneous Revenue 133,846 32,800 39,064 (94,782) -70.8% 6,264 19.1%
YTD Total 411,277 274,400 325,053 (86,223) -21.0% 50,653 18.5%
Annual Total 899,378 489,100
Miscellaneous Revenues by Type
Year to Date through June
2011 vs. 2010 2011 vs. Budget
Real Estate Excise Tax
The Real Estate Excise Tax (REET) revenue is received into the Capital Improvement Projects
Fund and is used for governmental capital projects. Total revenue at the end of June is
$674.8K or 7.7% more than 2010 and $133.4K or 24.6% more than budget. This sharp increase
in REET revenue in March is primarily due to a large commercial property transaction. Recent
months revenues have been modest and reflect the slow 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 June 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 3,902,536 8,061,895 3,399,348 4,497,563 13,005 385,388 467,065
Rents, Leases, Concessions & Other - - - - 312,279 684 100,250
TOTAL OPERATING REVENUES 3,902,536 8,061,895 3,399,348 4,497,563 325,284 386,072 567,315
OPERATING EXPENSES:
Administration 1,170,787 952,655 1,319,123 369,886 294,890 139,558 117,734
Operations & Maintenance 1,935,315 7,657,965 1,264,776 3,761,182 78 349,025 558,854
Depreciation & Amortization 1,043,766 811,779 647,948 9,410 203,553 29,154 163,119
TOTAL OPERATING EXPENSES 4,149,868 9,422,399 3,231,847 4,140,478 498,521 517,737 839,707
OPERATING INCOME (LOSS)(247,332) (1,360,504) 167,502 357,085 (173,237) (131,665) (272,392)
NON-OPERATING REVENUES & EXPENSES
Interest Revenue 23,832 28,202 39,819 385 1,075 99 107
Other Non Operating Revenue 93,360 67,422 30,078 7,759 2,708 30 -
Other Non Operating Expense (324,589) (152,781) (109,434) - (27,238) (11,134) (94,139)
TOTAL NON-OPERATING REVENUES (EXPENSES) (207,398) (57,158) (39,537) 8,143 (23,455) (11,005) (94,032)
(454,730) (1,417,662) 127,964 365,228 (196,691) (142,670) (366,423)
Contributions 159,184 142,890 345,668 - - - -
Transfers In 31,300 20,361
Transfers Out (50,000) (50,000) (96,000) - - - -
TOTAL CONTRIBUTIONS & TRANSFERS 109,184 92,890 249,668 - - 31,300 20,361
CHANGE IN FUND BALANCE (345,546) (1,324,773) 377,632 365,228 (196,691) (111,370) (346,063)
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, June 30, 2011 59,329,444 66,304,291 41,333,966 1,289,038 9,508,627 754,410 4,864,466
INCOME (LOSS) BEFORE CONTRIBUTIONS &
TRANSFERS
14
Monthly Financial Report June 2011
The following table presents the Enterprise funds working capital statements. Working capital is
generally defined as the difference between current assets and current liabilities.
Water Sewer Storm Solid Waste Airport Cemetery Golf
OPERATING REVENUES
Charges for services 3,902,536 8,061,895 3,399,348 4,497,563 13,005 385,388 467,065
Rents, Leases, Concessions & Other - - - - 312,279 684 100,250
TOTAL OPERATING REVENUES 3,902,536 8,061,895 3,399,348 4,497,563 325,284 386,072 567,315
OPERATING EXPENSES:
Salaries & Wages 1,011,858 700,576 888,883 206,615 9,505 235,075 268,849
Benefits 405,909 281,612 362,727 81,776 2,430 100,673 121,226
Supplies 90,218 26,611 24,136 19,805 - 94,065 131,293
Other Service Charges 1,072,060 857,750 631,033 3,658,799 283,032 24,114 66,919
Intergovernmental Services - 6,349,243 9,843 70,576 - - -
Interfund Operating Rentals/Supplies 526,057 394,829 667,277 93,498 - 34,656 88,302
Depreciation & Amortization 1,043,766 811,779 647,948 9,410 203,553 29,154 163,119
TOTAL OPERATING EXPENSES 4,149,868 9,422,399 3,231,847 4,140,478 498,521 517,737 839,707
OPERATING INCOME (LOSS)(247,332) (1,360,504) 167,502 357,085 (173,237) (131,665) (272,392)
NON-OPERATING REVENUES & EXPENSES
Interest Revenue 23,832 28,202 39,819 385 1,075 99 107
Other Non Operating Revenue 93,360 67,422 30,078 7,759 500 30 124
Other Non Operating Expense (324,589) (152,781) (109,434) - (27,238) (11,134) (94,139)
TOTAL NON-OPERATING REVENUES (EXPENSES) (207,398) (57,158) (39,537) 8,143 (25,662) (11,005) (93,908)
Plus Items Not Effecting Working Capital
Depreciation 1,043,766 811,779 647,948 9,410 203,553 29,154 163,119
589,036 (605,883) 775,912 374,638 4,654 (113,516) (203,181)
Increase in Contributions -System Development 159,184 130,934 336,023 - - - -
Increase in Contributions -Area Assessments - 11,956 9,644 - - - -
Increase in Contributions -FAA - - - - 2,208
Operating Transfers In - - - - - 31,300 20,361
Increase in Restricted Net Assets 7,214 - - - (119) -
Proceeds of Debt Activity - - - - - - -
Increase in Deferred Credits - - - - 7,369 - -
TOTAL RESOURCES OTHER THAN OPERATIONS 166,398 142,890 345,668 - 9,457 31,300 20,361
Net Change in Restricted Net Assets 48,988 386 11,717 - 862 - (18,433)
Increase in Fixed Assets - Salaries 113,114 43,825 49,286 - - - -
Increase in Fixed Assets - Benefits 42,212 15,313 19,060 - - - -
Increase in Fixed Assets - Site Improvements 53,737 - - - - - -
Increase in Fixed Assets - Equipment 22,694 - - - - 10,527 -
Increase in Fixed Assets - Construction 1,725,150 412,741 175,620 - 89,354 52,351 -
Operating Transfers Out 50,000 50,000 96,000 - - - -
Debt Service Principal 435,568 288,262 - - - - -
TOTAL USES OTHER THAN OPERATIONS 2,491,463 810,526 351,684 - 90,216 62,878 (18,433)
NET CHANGE IN WORKING CAPITAL (1,736,029) (1,273,520) 769,896 374,638 (76,104) (145,094) (164,387)
BEGINNING WORING CAPITAL, January 1, 2011 21,606,067 16,021,979 9,795,538 775,690 969,009 124,129 3,752
ENDING WORKING CAPITAL, June 30, 2011 19,870,039 14,748,459 10,565,434 1,150,328 892,905 (20,965) (160,635)
NET CHANGE IN WORKING CAPITAL (1,736,029) (1,273,520) 769,896 374,638 (76,104) (145,094) (164,387)
NET WORKING CAPITAL FROM OPERATIONS
15
Monthly Financial Report June 2011
The Water utility incurred an operating loss at the end of June, reflecting a decline in water sales.
Water sales totaled $3.9 million compared to $4.3 million for the same period last year. This
decline is due to the loss of Covington as a wholesale water customer and a general decrease in
water usage among other City customer classes during the first quarter of the year.
As shown in the following chart, water sales and consumption in 2011 is trending below prior
year levels.1 Despite rates increase of 7% effective January 1, 2011, the decline in water
consumption more than offset the increase in rates. While water sales are expected to increase as
the weather warms, overall sales for 2011 will likely remain below 2010 levels for the remainder
of the year. Finance plans to prepare an updated financial analysis of the Water utility and rate
revenue sufficiency by summer or early fall.
‐
200,000
400,000
600,000
800,000
1,000,000
1,200,000
Water Revenues ($) vs Water Sold (ccf)
2010 ‐Present
2010 Water Sales ($)
2011 Water Sales ($)
2010 Water Sold (ccf)
2011 Water Sold (ccf)
The Sewer fund operating loss at the end of June is primarily due to increased expenses related to
the Metro sewer treatment services. Year to date Metro billings for 2011 totaled $6.3M and
compares to $5.6M 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.
1 May 2010 water sales and consumption reflect a one-time adjustment for Boeing while the change in water sales and
consumption between April 2011 and May 2011 reflect a one-time adjustment for the Auburn School District. First
quarter 2011 and May 2011 water sales have been adjusted to reflect wholesale water back bills for January, February
and March 2011.
16
Monthly Financial Report June 2011
Solid Waste operating expenses are low due to timing of invoices form Waste Management.
June billing of $656,010 was posted in July.
Golf Course operating revenues totaled $567.3K at the end of June 2011 and compares to
$623.4K 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 56 of the 78 weekend days
throughout this period. However, during the month of June, the number of rounds played
increased by 1,275 in comparison to June 2010 due to improved weather conditions. While
increasing revenues are anticipated to continue during the summer months as playing conditions
become more favorable, operating losses at the Golf Course are expected to continue for the
remainder of 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
17
Monthly Financial Report June 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 - 1,941,648 2,079,714 1,425,241
Rents, Leases, Concessions & Other - 28,670 12,144 -
TOTAL OPERATING REVENUES - 1,970,318 2,091,858 1,425,241
OPERATING EXPENSES:
Administration 626,667 - 123,300 337,753
Operations & Maintenance - 989,969 1,752,432 621,351
Depreciation & Amortization - - 232,206 443,972
TOTAL OPERATING EXPENSES 626,667 989,969 2,107,939 1,403,076
OPERATING INCOME (LOSS)(626,667) 980,349 (16,081) 22,166
NON-OPERATING REVENUES & EXPENSES
Interest Revenue 1,397 1,099 3,796 5,242
Other Non Operating Revenue - 32,439 - 10,386
Other Non Operating Expense - - - -
TOTAL NON-OPERATING REVENUES (EXPENSES)1,397 33,538 3,796 15,628
INCOME (LOSS) BEFORE CONTRIBUTIONS & TRANSFERS (625,269) 1,013,888 (12,285) 37,793
Contributions - - -
Transfers In
Transfers Out - (375,000) (7,000)
TOTAL CONTRIBUTIONS & TRANSFERS - (375,000) - (7,000)
CHANGE IN FUND BALANCE (625,269) 638,888 (12,285) 30,793
BEGINNING FUND BALANCE, January 1, 2011 2,366,832 661,686 4,918,922 10,611,968
ENDING FUND BALANCE, June 30, 2011 1,741,563 1,300,574 4,906,637 10,642,761
18
Monthly Financial Report June 2011
The working capital statements for the Internal Service funds are presented on the table below.
Information Equipment
Insurance Facilities Services Rental
OPERATING REVENUES:
Interfund Charges for services - 1,943,497 2,079,714 318,799
Rents, Leases, Concessions & Other - 26,821 12,144 1,106,442
TOTAL OPERATING REVENUES - 1,970,318 2,091,858 1,425,241
OPERATING EXPENSES:
Salaries & Wages - 324,340 621,049 169,448
Benefits 92,926 129,623 215,754 67,172
Supplies - 43,619 79,019 413,373
Other Service Charges 533,741 447,188 800,010 192,152
Interfund Operating Rentals/Supplies - 45,198 159,900 116,959
Depreciation & Amortization - - 232,206 443,972
TOTAL OPERATING EXPENSES 626,667 989,969 2,107,939 1,403,076
OPERATING INCOME (LOSS)(626,667) 980,349 (16,081) 22,166
NON-OPERATING REVENUES & EXPENSES
Interest Revenue 1,397 1,099 3,796 5,242
Other Non Operating Revenue - 22,023 - 10,386
Other Non Operating Expense - - - -
TOTAL NON-OPERATING REVENUES (EXPENSES)1,397 23,122 3,796 15,628
Plus Items Not Effecting Working Capital
Depreciation - - 232,206 443,972
(625,269) 1,003,471 219,922 481,765
Increase in Contributions -Other Government - 10,417 - -
Transfers In - - -
TOTAL RESOURCES OTHER THAN OPERATIONS - 10,417 - -
Net Change in Restricted Net Assets - 1,200 - (4,002)
Increase in Fixed Assets - Equipment - - 32,333 45,968
Increase in Fixed Assets - Construction - - 46,062 5,072
Operating Transfers Out - 375,000 - 7,000
TOTAL USES OTHER THAN OPERATIONS - 376,200 78,395 54,037
NET CHANGE IN WORKING CAPITAL (625,269) 637,688 141,527 427,728
BEGINNING WORING CAPITAL, January 1, 2011 2,366,832 714,944 3,949,793 5,826,195
ENDING WORKING CAPITAL, June 30, 2011 1,741,563 1,352,632 4,091,320 6,253,923
NET CHANGE IN WORKING CAPITAL (625,269) 637,688 141,527 427,728
NET WORKING CAPITAL FROM OPERATIONS
The Insurance Fund expenses include $531,381 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 $1,970,318 cover expenses totaling 1,364,969 that include
$375,000 in transfers out for debt service related to the annex building. Expenses are low
compared to budget due to professional services, utilities and repairs and maintenance that are
anticipated to be spent later in the year.
Equipment rental fund balance of $10,642,761 includes $4.4 M in fixed assets net of depreciation
which primarily consists of the City’s fleet vehicles.
19
Monthly Financial Report June 2011
Contact Information
This report is prepared by the Finance Department. Additional financial information can also be
viewed at our website: http://www.auburnwa.gov/. For any questions about the report please
contact us at mchaw@auburnwa.gov or scoleman@auburnwa.gov.
20
SALES TAX SUMMARY
JUNE 2011 SALES TAX DISTRIBUTIONS (FOR APRIL 2011 RETAIL ACTIVITY)
10 Total 10 YTD 11 YTD YTD 10 Total 10 YTD 11 YTD YTD
NAICS CONSTRUCTION (NOV-OCT)(NOV-APR)(NOV-APR)% Diff NAICS AUTOMOTIVE (NOV-OCT)(NOV-APR)(NOV-APR)% Diff
236 Construction of Buildings 607,355 266,957 238,722 -10.6%441 Motor Vehicle and Parts Dealer 2,346,944 1,108,022 1,235,812 11.5%
237 Heavy and Civil Construction 121,822 63,656 38,199 -40.0%447 Gasoline Stations 210,961 99,727 107,710 8.0%
238 Specialty Trade Contractors 594,645 256,159 293,778 14.7%TOTAL AUTOMOTIVE 2,557,905$ 1,207,749$ 1,343,523$ 11.2%
TOTAL CONSTRUCTION 1,323,822$ 586,771$ 570,698$ -2.7%Overall Change from Previous Year 135,773$
Overall Change from Previous Year (16,073)$
10 Total 10 YTD 11 YTD YTD
10 Total 10 YTD 11 YTD YTD NAICS RETAIL TRADE (NOV-OCT)(NOV-APR)(NOV-APR)% Diff
NAICS MANUFACTURING (NOV-OCT)(NOV-APR)(NOV-APR)% Diff 442 Furniture and Home Furnishings 193,852 100,596 107,715 7.1%
311 Food Manufacturing 2,062 1,207 1,278 5.9%443 Electronics and Appliances 120,703 62,472 71,809 14.9%
312 Beverage and Tobacco Products 3,610 1,693 1,787 5.5%444 Building Material and Garden 389,137 179,068 167,062 -6.7%
313 Textile Mills 121 44 336 663.2%445 Food and Beverage Stores 351,329 168,055 161,006 -4.2%
314 Textile Product Mills 1,682 651 1,020 56.7%446 Health and Personal Care Store 143,820 73,601 76,433 3.8%
315 Apparel Manufacturing 2,202 688 2,385 246.7%448 Clothing and Accessories 730,903 369,961 392,982 6.2%
316 Leather and Allied Products 45 26 144 464.5%451 Sporting Goods, Hobby, Books 116,615 64,340 68,497 6.5%
321 Wood Product Manufacturing 30,078 18,442 11,487 -37.7%452 General Merchandise Stores 801,501 416,261 532,338 27.9%
322 Paper Manufacturing 10,842 5,514 8,475 53.7%453 Miscellaneous Store Retailers 504,303 245,868 240,090 -2.3%
323 Printing and Related Support 43,243 21,428 20,950 -2.2%454 Nonstore Retailers 234,807 110,982 122,334 10.2%
324 Petroleum and Coal Products 3,320 1,322 3,670 177.7%TOTAL RETAIL TRADE 3,586,970$ 1,791,204$ 1,940,266$ 8.3%
325 Chemical Manufacturing 8,684 3,222 3,541 9.9%Overall Change from Previous Year 149,062$
326 Plastics and Rubber Products 9,254 4,986 5,046 1.2%
327 Nonmetallic Mineral Products 19,031 6,979 5,786 -17.1%
331 Primary Metal Manufacturing 189 67 149 123.5%10 Total 10 YTD 11 YTD YTD
332 Fabricated Metal Product Manuf 17,110 8,794 10,329 17.5%NAICS SERVICES (NOV-OCT)(NOV-APR)(NOV-APR)% Diff
333 Machinery Manufacturing 13,445 6,885 5,885 -14.5%51*Information (see footnote)638,645 328,109 202,280 -38.3%
334 Computer and Electronic Produc 12,773 4,875 9,741 99.8%52*Finance and Insurance 68,357 35,982 33,548 -6.8%
335 Electric Equipment, Appliances 192 69 118 70.2%53*Real Estate, Rental, Leasing 288,013 137,638 141,793 3.0%
336 Transportation Equipment Man 186,247 79,900 189,450 137.1%541 Professional, Scientific, Tech 188,696 99,068 94,936 -4.2%
337 Furniture and Related Products 12,784 5,977 5,606 -6.2%551 Company Management 165 88 107 21.9%
339 Miscellaneous Manufacturing 27,899 15,382 13,699 -10.9%56*Admin. Supp., Remed Svcs 234,384 100,720 151,794 50.7%
TOTAL MANUFACTURING 404,813$ 188,150$ 300,881$ 59.9%611 Educational Services 55,877 26,682 26,665 -0.1%
Overall Change from Previous Year 112,731$ 62*Health Care Social Assistannce 37,475 21,658 15,974 -26.2%
71*Arts and Entertainment 153,918 88,312 90,361 2.3%
72*Accomodation and Food Svcs 806,733 390,528 392,940 0.6%
10 Total 10 YTD 11 YTD YTD 81*Other Services 385,105 193,702 195,947 1.2%
NAICS TRANSPORTATION AND WAREHOUSING (NOV-OCT)(NOV-APR)(NOV-APR)% Diff 92*Public Administration 109,678 44,181 46,618 5.5%
481 Air Transportation - - 24 N/A TOTAL SERVICES 2,967,046$ 1,466,670$ 1,392,963$ -5.0%
482 Rail Transportation 4,500 3,467 7,228 108.5%Overall Change from Previous Year (73,707)$
484 Truck Transportation 7,660 3,450 32,119 831.0%
485 Transit and Ground Passengers 57 53 45 -14.5%
488 Transportation Support 13,207 6,202 8,573 38.2%10 Total 10 YTD 11 YTD YTD
491 Postal Service 194 102 104 2.7%NAICS MISCELLANEOUS (NOV-OCT)(NOV-APR)(NOV-APR)% Diff
492 Couriers and Messengers 993 717 715 -0.2%000 Unknow n 754 1 383 32906.9%
493 Warehousing and Storage 2,574 1,360 1,642 20.7%111-115 Agriculture, Forestry, Fishing 2,839 1,332 5,865 340.4%
TOTAL TRANSPORTATION 29,185$ 15,350$ 50,451$ 228.7%211-221 Mining & Utilities 22,364 8,614 6,837 -20.6%
Overall Change from Previous Year 35,101$ 999 Unclassifiable Establishments 102,180 74,538 121,704 63.3%
TOTAL SERVICES 128,138$ 84,485$ 134,788$ 59.5%
Overall Change from Previous Year 50,304$
10 Total 10 YTD 11 YTD YTD
NAICS WHOLESALE TRADE (NOV-OCT)(NOV-APR)(NOV-APR)% Diff
423 Wholesale Trade, Durable Goods 1,020,802 473,957 569,234 20.1%GRAND TOTAL 12,183,319$ 5,888,697$ 6,381,729$
424 Wholesale Trade, Nondurable 160,317 73,288 75,530 3.1%Overall Change from Previous Year 493,032$ 8.4%
425 Wholesale Electronic Markets 4,320 1,072 3,395 216.6%
TOTAL WHOLESALE 1,185,440$ 548,317$ 648,159$ 18.2%
Overall Change from Previous Year 99,842$
April 26 2011 file:Monthly Sales Tax Report.xls
Prepared by Auburn Financial Planning
Footnote: NAICS 51* 2010 data adjusted for Comcast audit adjustment of $339,470, as received for Feb 2010.
21
Investment Purchase Purchase Maturity Yield to
Type Date Price Date Maturity
State Investment Pool Various 92,004,412$ Various 0.16%
KeyBank Money Market Various 9,607,757 Various 0.10%
US Treasury 05/04/1990 57,750 05/15/2016 5.72%
FHLB 2/2/2009 1,000,000 8/2/2011 1.840%
FHLB 3/28/2011 2,000,000 3/28/2014 1.300%
FHLB 6/13/2011 2,000,000 6/13/2014 1.150%
FHLMC 5/27/2011 2,000,000 2/28/2014 1.250%
FFCB 6/6/2011 2,000,000 6/6/2014 1.180%
Total Cash & Investments 110,669,919$ 0.227%
Investment Mix % of Total
State Investment Pool 83.1% Current 6-month treasury rate 0.10%
KeyBank Money Market 8.7%Current State Pool rate 0.16%
US Treasury 0.1%KeyBank Money Market 0.10%
FHLB 4.5%Blended Auburn rate 0.23%
FHLMC 1.8%
FFCB 1.8%
100.0%
City of Auburn
Investment Portfolio Summary
As of June 30, 2011
Summary
22