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Home My WebLink AboutOctober 2011 AGENDA BILL APPROVAL FORM Agenda Subject: October 2011 Financial Report Date: 12/19/2011 Department: Finance Attachments: October 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 October 2011 status report highlights City revenues and expenditures and is based on financial data available as of November 28, 2011. Sales tax reported in October is for business activities that occurred in August 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 October, General Fund revenue collections totaled $45.7 million, and compares to year- to-date budget of $43.6 million and were sufficient to meet expenses of $40.4 million. Total General Fund revenues for the City at the end of October are $2.1 million 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 $12.3 million and are 2.9% higher than last year. Improvement in retail activity was noted in all areas with the exception of services which remain weak, reflecting continued weakness in the housing and job market. Expenditures for the General Fund were $4.8 million below budget at the end of October. This is primarily due to unspent budget for retirement and long term care along with timing of payments for SCORE, debt service payments interfund transfers 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 October the Water fund recognized a modest operating income as a result of a back bill adjustment along with seasonal increase in irrigation usage during the late summer months. The Sewer fund ended this period with an operating loss due to declining revenues as a result of lower water consumption during the first half of the year and timing of payments to Metro for sewer services. Stormwater revenues are on target and are sufficient to meet expenses. Despite improved revenues during the summer months the Golf Course ended October with slightly less revenues compared to the same period in 2010 due to less favorable weather conditions; and is projected to experience operating losses for the remainder of the year. 1 Agenda Subject: October 2011 Financial Report Date: 12/19/2011 Cemetery program revenues were higher than the same period last year but were not sufficient to erase a year-to-date operating loss. To address the current year cash flow needs of this fund, the Council approved a transfer of $200,000 from the Cumulative Reserve fund (Budget Amendment #5, Ordinance #6378) to the Cemetery fund. 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 October, 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: The City’s total cash and investments at the end of October was $102 million and compares to $105 million in September. 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: December 19, 2011 Item Number: 2 Monthly Financial Report October 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 10,888,340 11,562,342 11,538,648 674,002 6.2% Sales Tax (1)14,295,000 11,895,700 12,319,265 11,972,533 423,565 3.6% Sales Tax - Annexation Credit 1,356,600 1,125,200 1,218,787 1,153,305 93,587 8.3% Criminal Justice Sales Tax 1,177,600 977,800 1,126,809 1,034,841 149,009 15.2% Brokered Natural Gas Tax 260,000 220,700 259,202 229,713 38,502 17.4% City Utilities Tax 2,522,800 2,181,300 2,093,649 2,010,482 (87,651) -4.0% Admissions Tax 350,000 339,500 356,587 358,873 17,087 5.0% Electric Tax 2,850,000 2,850,000 3,092,930 2,995,902 242,930 8.5% Natural Gas Tax 1,270,410 1,268,310 1,120,789 985,711 (147,521) -11.6% Cable TV Franchise Fee 689,800 689,800 800,068 794,731 110,268 16.0% Cable TV Franchise Fee - Capital 75,000 75,000 63,678 - (11,322) -15.1% Telephone Tax 1,972,900 1,569,900 1,666,904 1,707,285 97,004 6.2% Garbage Tax (external)150,000 122,600 129,392 130,428 6,792 5.5% Leasehold Excise Tax 45,000 36,400 29,711 28,019 (6,689) -18.4% Gambling Excise Tax 326,500 292,800 203,115 250,135 (89,685) -30.6% Business License Fees 200,000 100,600 123,847 119,572 23,247 23.1% Building Permits 700,000 569,500 997,232 648,624 427,732 75.1% Other Licenses & Permits 229,000 190,700 409,433 274,727 218,733 114.7% Intergovernmental (Grants, etc)4,008,745 3,295,045 3,281,809 3,146,502 (13,236) -0.4% Charges for Services: General Government Services 64,600 54,800 73,320 69,876 18,520 33.8% Public Safety 216,000 181,500 200,265 188,080 18,765 10.3% Development Services Fees 627,000 512,900 454,296 540,497 (58,604) -11.4% Culture and Recreation 877,500 786,000 707,536 773,002 (78,464) -10.0% Fines and Forfeits 2,208,500 1,822,900 1,672,167 2,069,580 (150,733) -8.3% Interests and Other Earnings 110,000 94,500 64,982 121,776 (29,518) -31.2% Rents, Leases and Concessions 315,000 272,800 293,530 560,272 20,730 7.6% Contributions and Donations 17,900 14,700 42,725 51,021 28,025 190.6% Other Miscellaneous 48,980 44,580 103,363 104,107 58,783 131.9% Proceeds of Gen. Long Term Debt-Refi Valley Com - - - 1,069,000 - N/A Transfers In 1,078,439 1,078,439 1,078,439 61,300 - 0.0% Insurance Recoveries- Capital & Operating 25,000 20,800 137,756 74,672 116,956 562.3% Total Operating Revenues 50,090,614 43,573,114 45,683,927 45,063,214 2,110,812 4.8% Operating Expenditures Council & Mayor 863,420 725,620 640,427 553,879 85,193 11.7% Municipal Court & Probation 3,281,520 2,678,420 2,445,647 2,224,621 232,773 8.7% Human Resources 830,710 704,310 652,215 578,145 52,095 7.4% Finance 1,162,900 962,400 933,733 910,427 28,667 3.0% City Attorney 1,640,480 1,381,780 1,291,803 1,315,482 89,977 6.5% Planning 3,749,540 3,178,940 2,956,393 2,707,618 222,547 7.0% Community & Human Services 1,088,430 882,230 807,530 737,796 74,700 8.5% Jail - SCORE 6,087,470 4,925,670 4,170,826 - 754,844 15.3% Police 19,843,980 15,988,080 14,837,832 17,586,625 1,150,248 7.2% Engineering 2,380,410 1,980,010 1,829,720 2,005,394 150,290 7.6% Parks and Recreation 7,325,570 6,077,170 5,879,029 5,465,929 198,141 3.3% Streets 3,125,960 2,539,860 2,232,868 2,175,447 306,992 12.1% Non-Departmental 4,500,620 3,155,720 1,701,940 4,245,691 1,453,780 46.1% Total Operating Expenditures 55,881,010 45,180,210 40,379,962 40,507,054 4,800,248 10.6% 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 $1,493,061 SST Mitigation the City received from the State through the 3rd quarter of 2011 plus $163,789 allocation for October that will be received in December. Overview This financial overview reflects the City’s overall financial position for the fiscal year through October 31, 2011. The report represents financial data available as of November 28, 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 3 Monthly Financial Report October 2011 Fund revenues and expenditures. At the end of October, General Fund revenues totaled $45.7 million and are $620.7K greater compared to the same period of 2010 due to increased revenues from sales tax, utility tax and building permits. General Fund revenue highlights include: ‐ Property taxes totaled $11.6 million and are slightly higher than the level collected for the same period last year. ‐ Sales taxes totaled $12.3 million, are $346.7K higher compared to collections as of October 2010. Review of sales tax activity by sector show improvements in all sectors with the exception of services, which is below the same period last year due to a one‐time sales tax adjustment in 2010. ‐ Development service fees (engineering, zoning, sub‐division and plan check), 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 October totaled $40.4 million compared to $40.5 million for same period 2010. When compared to budget, General Fund expenses were 10.6% below expectations. Highlights include: ‐ Timing of intergovernmental payments for SCORE accounted for the majority of the variance against budget. Currently there is an estimated $1million billing from SCORE for September and October and additional $54,600 from King County for September and October services that will be posted in November and December. ‐ Police expenditures are low compared to budget due to savings from staff vacancies. ‐ Streets expenditures were below budget due to savings from staff vacancies. ‐ Non departmental was below budget primarily due to unspent budget for retirement benefits, debt service payments, SCORE start up transition costs and the timing of transfers out that are anticipated to occur during the last quarter of 2011. Revenues The combined total of property tax, sales/use tax, utility tax, gambling, and admissions tax provide 79% of all resources supporting general governmental activities. The following section provides detail information on these sources. Property Tax Year‐to‐date collection at the end of October is $11.6 million, reflecting the majority of the second half 2011 property tax payments, and is $674K 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. 4 Monthly Financial Report October 2011 Sales Tax $0.0 $2.0 $4.0 $6.0 $8.0 $10.0 $12.0 $14.0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecMillionsProperty Taxes 2011 budget 2011 actual to date 2010 actual Sales taxes are running slightly ahead of the previous year’s pace. Year‐to‐date sales tax revenue totaled $12.3 million and compares to a year‐to‐date budget of $11.9 million. Sales taxes include Streamlined Sales Tax Mitigation payments of $1,493,061 received through the end of 3rd quarter plus $163,789 allocation for October. 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. While sales tax returns have improved slightly over the previous year, reflecting the decrease in unemployment, and slight increase in existing home sales; the debt crisis in Europe continue to dampen overall consumer sentiment and the pace of the economic recovery in the short term. $0.0 $2.0 $4.0 $6.0 $8.0 $10.0 $12.0 $14.0 $16.0 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 October 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 1,041,628 1,055,688 14,060 1.3% Manufacturing 321,471 490,413 168,942 52.6% Transportation & Warehousing 24,266 66,960 42,694 175.9% Wholesale Trade 957,875 1,037,928 80,053 8.4% Automotive 2,108,497 2,322,643 214,146 10.2% Retail Trade 2,964,538 3,151,696 187,158 6.3% Services 2,825,676 2,340,425 (485,251) -17.2% Miscellaneous 111,924 206,718 94,794 84.7% YTD Total 10,355,875 10,672,471 316,596 3.1% Change from 2010 Year to Date through October Comparison of Sales Tax Collections by SIC Group 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 collections is in line with expectations, totaling $8.1 million or 3.5% more than 2010, due primarily to higher revenues from the City inter‐fund utility taxes, electric and natural gas utility taxes which have offset lower than anticipated revenues from telephone and solid waste utility taxes. $0.0 $1.0 $2.0 $3.0 $4.0 $5.0 $6.0 $7.0 $8.0 $9.0 $10.0 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 October 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 2,010,482 2,181,300 2,093,649 83,167 4.1% (87,651) -4.0% Electric 2,995,902 2,850,000 3,092,930 97,028 3.2% 242,930 8.5% Natural Gas 985,711 1,268,310 1,120,789 135,078 13.7% (147,521) -11.6% Telephone 1,707,285 1,569,900 1,666,904 (40,381) -2.4% 97,004 6.2% Solid Waste 130,428 122,600 129,392 (1,036) -0.8% 6,792 5.5% YTD Total 7,829,807 7,992,110 8,103,663 273,856 3.5% 111,553 1.4% Annual Total 8,591,258 8,766,110 Year to Date through October Utilty Tax by Type 2011 vs. 2010 2011 vs. Budget Cable TV Franchise Fees, which is fully collected for the year, totaled $800,067 has outpaced the previous year and current year budget. $0 $100 $200 $300 $400 $500 $600 $700 $800 $900 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 October, the City has collected $401,511 more than 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 October were $997,232; this was $427.7K or 75.1% more than the 2011 budgeted year‐to‐date revenues. The increase in October is primarily due to permits related to Auburn 40 PUD, Lakeland East and commercial property alterations. 7 Monthly Financial Report October 2011 2010 2011 2011 Month Actual Budget Actual Amount Percentage Amount Percentage Jan 88,175 59,900 78,928 (9,246) -10.5% 19,028 31.8% Feb 49,731 38,300 53,862 4,131 8.3% 15,562 40.6% Mar 43,796 37,500 40,897 (2,899) -6.6% 3,397 9.1% Apr 44,422 56,800 84,239 39,817 89.6% 27,439 48.3% May 96,244 61,500 104,495 8,252 8.6% 42,995 69.9% Jun 74,701 94,500 151,177 76,476 102.4% 56,677 60.0% Jul 72,745 64,300 178,330 105,585 145.1% 114,030 177.3% Aug 61,216 50,600 124,922 63,706 104.1% 74,322 146.9% Sep 55,073 42,600 92,413 37,339 67.8% 49,813 116.9% Oct 62,522 63,500 87,970 25,447 40.7% 24,470 38.5% Nov 31,192 38,300 0.0%0.0% Dec 89,861 92,200 0.0%0.0% YTD Total 648,624 569,500 997,232 348,608 53.7% 427,732 75.1% Annual Total 769,678 700,000 Year to Date through October Building Permits 2011 vs. 2010 2011 vs. Budget Business License revenues at the end of October were $4.3K more than 2010 and $23.2K or 23.1% more than the 2011 year‐to‐date budget. Revenues are higher compared to year‐to‐date budget and 2010 for the same period primarily due to increased outreach efforts to educate and contact businesses regarding licensing applications and renewals. $0 $50 $100 $150 $200 $250 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 October 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 October intergovernmental revenues were 4.3% more than 2010 and 0.4% less than budget mainly due to the timing of grant reimbursements. Intergovernmental Service revenues of $21.8K represents reimbursement from the Valley Regional Fire Authority for 9/11 Commemoration expenses and reimbursement from Washington State for Crisis Intervention Training. 2010 2011 2011 Revenue Actual Budget Actual % Change % Change Federal Grants 352,763 410,900 304,139 -13.8%-26.0% State Grants 102,465 11,200 101,199 -1.2% 803.6% Interlocal Grants 116,330 30,000 3,151 -97.3%-89.5% State Shared Revenue 2,206,713 2,247,845 2,139,147 -3.1%-4.8% Muckleshoot Casino Emerg. 368,231 595,100 712,294 93.4%19.7% Intergovernmental Service - - 21,880 N/A N/A YTD Total 3,146,502 3,295,045 3,281,809 4.3%-0.4% Annual Total 4,089,803 4,008,745 YTD %77% 82% 82% Year to Date through October Intergovernmental 2011 vs. 2010 2011 vs. Budget Total state shared revenues are $67.6K lower than the same period 2010 and $108.7K less than 2011 budget due to the change in revenue recognition of the Motor Vehicle Fuel tax (MVFT). Beginning in 2011, the MVFT allocation for Arterial Street fund and Recreational Trails fund will be posted directly to each fund. 2010 2011 2011 Revenue Actual Budget Actual Amount Percentage Amount Percentage Trial Court Improvements 16,999 17,500 22,468 5,469 32.2% 4,968 28.39% Court Interpreter Program - 4,040 6,643 6,643 N/A 2,603 64.42% Motor Vehicle Fuel Tax 1,210,488 1,212,710 1,172,717 (37,771) -3.1% (39,993) -3.3% Criminal Justice -High Crime 74,525 148,975 146,442 71,917 96.5% (2,533) -1.70% Criminal Justice -Population 41,688 15,200 15,470 (26,218) -62.9% 270 1.8% Criminal Justice -Spec. Prog. 56,884 55,300 58,404 1,520 2.7% 3,104 5.6% State DUI 12,510 4,000 14,720 2,209 17.7% 10,720 268.0% Fire Insurance Premium Tax 63,545 65,000 (0) (63,545) -100.0% (65,000) -100.00% Liquor Excise Tax 327,709 338,990 335,127 7,418 2.3% (3,863) -1.1% Liquor Profits 402,365 386,130 367,156 (35,209) -8.8% (18,974) -4.91% YTD Total 2,206,713 2,247,845 2,139,147 (67,567) -3.1% (108,698) -4.8% Annual Total 2,594,749 2,624,945 Year to Date through October State Shared Revenues 2011 vs. 2010 2011 vs. Budget 9 Monthly Financial Report October 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 84% of the $1.78 million annual budget for this category and are presented following the Charges for Service table below. At the end of October, revenue from charges for services totaled $1.4 million and was 6.5% below budget due to lower than anticipated revenues from development services and culture & recreation programs. General government services include passport services, administrative fees, court duplicating costs and sale of maps & publications. This income category is higher compared to 2010 primarily due to an $11.6K write off of prior years debit balance in October 2010 for City of Algona court services. Public Safety consists of law enforcement services, probation and prisoner lodging fees; overall this revenue source is $18.8K or 10.3% more than budget at the end of October due to increased receipts from probation fees. 2010 2011 2011 Revenue Actual Budget Actual Amount Percentage Amount Percentage General Government 69,876 54,800 73,320 3,443 4.93% 18,520 33.80% Public Safety 188,079 181,500 200,265 12,186 6.5% 18,765 10.3% Development Services 540,497 512,900 454,296 (86,202) -15.9% (58,604) -11.4% Culture & Recreation 773,002 786,000 707,536 (65,465) -8.5% (78,464) -10.0% YTD Total 1,571,455 1,535,200 1,435,417 (136,038) -8.7% (99,783) -6.5% Annual Total 1,861,204 1,785,100 Year to Date through October Charges for Services by Type 2011 vs. 2010 2011 vs. Budget Development services include engineering fees, zoning & subdivision fees and plan check fees. At the end of October, revenues totaled $454.3K and are 15.9% less than the same period in 2010. Total development service revenue is less than the budget for the year by $58.6K or 11.4% primarily due to lower than anticipated engineering and zoning & subdivision fees. $0 $100 $200 $300 $400 $500 $600 $700 $800 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 October 2011 Culture & Recreation revenues totaled $707.5K and consist of theater ticket sales, recreational classes, arts commission and senior citizen program fees. Collections are running below budget and previous year’s performance due to lower revenue from adult health & fitness classes and afterschool programs. $0 $100 $200 $300 $400 $500 $600 $700 $800 $900 $1,000 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) and false alarm fines. Revenue from the City’s photo enforcement program makes up nearly half of total revenues from this category. Year‐to‐date collections totaled $1.7M or 8.3% lower than the projected budget, due primarily to lower photo enforcement revenues. $0.0 $0.5 $1.0 $1.5 $2.0 $2.5 $3.0 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 October 2011 2010 2011 2011 Month Actual Budget Actual Amount Percentage Amount Percentage Civil Penalties 19,173 12,500 16,148 (3,024) -15.8% 3,648 29.2% Civil Infraction Penalties 616,471 465,600 556,701 (59,770) -9.7% 91,101 19.6% Red Light Photo Enforcement 991,567 973,400 720,310 (271,257) -27.4% (253,090) -26.0% Parking Infractions 160,733 140,200 152,300 (8,434) -5.2% 12,100 8.6% Criminal Traffic Misdemeanor 75,053 91,500 71,437 (3,616) -4.8% (20,063) -21.9% Criminal Non-Traffic Fines 91,982 77,900 76,213 (15,769) -17.1% (1,687) -2.2% Criminal Costs 7,868 9,100 12,838 4,970 63.2% 3,738 41.1% Non-Court Fines & Penalties 106,734 52,700 66,221 (40,513) -38.0% 13,521 25.7% YTD Total 2,069,580 1,822,900 1,672,167 (397,413) -19.2% (150,733) -8.3% Annual Total 2,472,411 2,208,500 Year to Date through October Fines & Forfeits by Type 2011 vs. 2010 2011 vs. Budget $0.0 $0.2 $0.4 $0.6 $0.8 $1.0 $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 $491,880 and interest & investment and rentals & leases make up 86% of the annual budget. Decreased interest earnings reflect the impact of timing of investment activity and the low interest rates; the Local Government Investment Pool interest has decreased from 0.28% in January 2010 to 0.11% in October 2011. 12 Monthly Financial Report October 2011 Revenue from rentals & leases increased over 2011 year‐to‐date budgeted levels, reflecting greater park facility rentals. Other miscellaneous revenue is budgeted conservatively. Other miscellaneous revenues in 2010 reflect a one‐time $95.7K reimbursement from the Crisis Clinic that was received in March. 2010 2011 2011 Month Actual Budget Actual Amount Percentage Amount Percentage Interest & Investments 121,776 94,500 64,982 (56,794) -46.6% (29,518) -31.2% Rents & Leases 560,272 272,800 293,530 (266,742) -47.6% 20,730 7.6% Contributions & Donations 51,021 14,700 42,725 (8,296) -16.3% 28,025 190.6% Other Miscellaneous Revenue 104,107 44,580 103,363 (744) -0.7% 58,783 131.9% YTD Total 837,176 426,580 504,600 (332,575) -39.7% 78,020 18.3% Annual Total 899,378 491,880 Miscellaneous Revenues by Type Year to Date through October 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 October is $1.2M or 33.3% more than 2010 and $243 K or 24.2% more than budget. $0.0 $0.2 $0.4 $0.6 $0.8 $1.0 $1.2 $1.4 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 October 2011 Enterprise Funds The following table 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 7,510,886 13,817,472 5,770,033 7,845,424 21,613 664,252 1,058,318 Rents, Leases, Concessions & Other - - - - 506,346 1,200 253,538 TOTAL OPERATING REVENUES 7,510,886 13,817,472 5,770,033 7,845,424 527,959 665,451 1,311,856 OPERATING EXPENSES: Administration 1,941,271 1,567,650 2,283,172 630,762 448,312 235,083 196,237 Operations & Maintenance 3,352,729 12,912,642 2,122,698 6,889,683 141 572,885 965,267 Depreciation & Amortization 1,735,384 1,340,095 1,068,279 15,683 329,903 48,384 268,910 TOTAL OPERATING EXPENSES 7,029,384 15,820,387 5,474,149 7,536,128 778,357 856,352 1,430,413 OPERATING INCOME (LOSS)481,503 (2,002,914) 295,884 309,297 (250,398) (190,901) (118,558) NON-OPERATING REVENUES & EXPENSES Interest Revenue 49,048 37,546 25,083 534 1,884 102 700 Other Non Operating Revenue 740,327 776,666 31,460 44,841 93,043 30 Other Non Operating Expense (324,589) (152,781) (109,434) - (27,238) (11,134) (96,663) TOTAL NON-OPERATING REVENUES (EXPENSES)464,785 661,430 (52,891) 45,375 67,689 (11,002) (95,963) 946,288 (1,341,484) 242,993 354,672 (182,709) (201,902) (214,521) Contributions 256,968 205,943 432,818 - - - - Transfers In 31,300 446,458 Transfers Out (50,000) (50,000) (96,800) - - - - TOTAL CONTRIBUTIONS & TRANSFERS 206,968 155,943 336,018 - - 31,300 446,458 CHANGE IN FUND BALANCE 1,153,256 (1,185,541) 579,010 354,672 (182,709) (170,602) 231,937 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, October 31, 2011 60,828,246 66,443,523 41,535,344 1,278,482 9,522,609 695,178 5,442,466 INCOME (LOSS) BEFORE CONTRIBUTIONS & TRANSFERS 14 Monthly Financial Report October 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 7,510,886 13,817,472 5,770,033 7,845,424 21,613 664,252 1,058,318 Rents, Leases, Concessions & Other - - - - 506,346 1,200 253,538 TOTAL OPERATING REVENUES 7,510,886 13,817,472 5,770,033 7,845,424 527,959 665,451 1,311,856 OPERATING EXPENSES: Salaries & Wages 1,686,792 1,153,881 1,490,165 343,857 15,840 392,640 466,534 Benefits 682,937 472,016 618,507 139,398 4,221 170,785 207,118 Supplies 194,909 57,770 44,663 39,246 - 142,556 205,571 Other Service Charges 1,881,912 1,462,566 1,100,820 6,630,829 428,392 44,228 135,111 Intergovernmental Services - 10,705,598 68,801 211,285 - - - Interfund Operating Rentals/Supplies 847,451 628,461 1,082,914 155,830 - 57,760 147,170 Depreciation & Amortization 1,735,384 1,340,095 1,068,279 15,683 329,903 48,384 268,910 TOTAL OPERATING EXPENSES 7,029,384 15,820,387 5,474,149 7,536,128 778,357 856,352 1,430,413 OPERATING INCOME (LOSS)481,503 (2,002,914) 295,884 309,297 (250,398) (190,901) (118,558) NON-OPERATING REVENUES & EXPENSES Interest Revenue 49,048 37,546 25,083 534 1,884 102 700 Other Non Operating Revenue 740,327 776,666 31,460 44,841 800 30 - Other Non Operating Expense (324,589) (152,781) (109,434) - (27,238) (11,134) (96,663) TOTAL NON-OPERATING REVENUES (EXPENSES)464,785 661,430 (52,891) 45,375 (24,554) (11,002) (95,963) Plus Items Not Effecting Working Capital Depreciation 1,735,384 1,340,095 1,068,279 15,683 329,903 48,384 268,910 2,681,671 (1,389) 1,311,272 370,354 54,952 (153,518) 54,389 Increase in Contributions -System Development 256,968 193,987 423,173 - - - - Increase in Contributions -Area Assessments - 11,956 9,644 - - - - Increase in Contributions -FAA Grants - - - - 92,243 Operating Transfers In - - - - - 31,300 446,458 Increase in Restricted Net Assets 11,592 25,865 - - (4,506) - Decrease in Long term Receivables - 45,000 - - - - - Increase in Deferred Credits - - - - 27,859 - - TOTAL RESOURCES OTHER THAN OPERATIONS 268,560 276,808 432,818 - 115,596 31,300 446,458 Net Change in Restricted Net Assets 295,550 679 88,646 - (4,506) - (73,741) Increase in Fixed Assets - Salaries 160,105 87,781 81,493 - - - - Increase in Fixed Assets - Benefits 58,988 33,279 32,539 - - - - Increase in Fixed Assets - Site Improvements 124,280 - - - - - - Increase in Fixed Assets - Equipment 24,980 30,367 - - - 9,487 - Increase in Fixed Assets - Construction 4,597,122 2,050,922 2,042,503 - 292,490 54,916 - Operating Transfers Out 50,000 50,000 96,800 - - - - Debt Service Principal 435,568 288,262 - - - - 59,375 TOTAL USES OTHER THAN OPERATIONS 5,746,593 2,541,288 2,341,981 - 287,984 64,403 (14,366) NET CHANGE IN WORKING CAPITAL (2,796,361) (2,265,869) (597,891) 370,354 (117,437) (186,621) 515,212 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, October 31, 2011 18,809,706 13,756,110 9,197,646 1,146,045 851,572 (62,492) 518,964 NET CHANGE IN WORKING CAPITAL (2,796,361) (2,265,869) (597,891) 370,354 (117,437) (186,621) 515,212 NET WORKING CAPITAL FROM OPERATIONS 15 Monthly Financial Report October 2011 The Water Utility ended October with a slight operating gain due primarily to a decrease in professional service expenses and a one‐time back bill adjustment. The growth in sales for the month of October is due to increased summer water usage as a result of drier weather conditions compared to October of 2010. The Water Utility is expected to end 2011 at nearly break even or with a slight operating loss, despite a 7% rate increase that became effective January 1, 2011. Finance is in the process of reviewing rate revenue requirements and will present the results of this analysis to the Council in early 2012. ‐ 200,000 400,000 600,000 800,000 1,000,000 1,200,000 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Water Revenues ($) vs Water Sold (ccf) 2010 ‐Present 2010 Water Sales ($) 2011 Water Sales ($) 2010 Water Sold (ccf) 2011 Water Sold (ccf) The cumulative decline in water usage during 2011 is also affecting the Sewer fund. The Sewer fund operating loss at the end of October is due to a combination of lower revenues associated with decreased water consumption and increased expenses related to the Metro sewer treatment services. Year‐to‐date Metro billings for 2011 totaled $10.7M and compares to $9.1M 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 4th quarter 2011 when the effects of the timing of these adjustments are worked through the rolling 12 month Metro billing cycle. Solid Waste operating expenses are low due to timing of invoices form Waste Management. October billing of $669,066 was posted in November. Golf Course operating revenues at the end of October totaled $1.3M and is almost equal for the same period in 2010. This revenue is low compared to year‐to‐date budget of $1.6 million, due to a decline in the level of golfing activity during the first half of the year. Total number of rounds played at the 16 Monthly Financial Report October 2011 end of October is currently running about 4.1% below 2010 levels (43,141 compared to 44,985 for the same period in 2010). Despite the improvement in activity during the summer, Golf Course operating losses are expected to continue for the remainder of 2011. $0 $50 $100 $150 $200 $250 $300 $350 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecThousandsGolf Course Operating Revenues by Month (2011 vs 2010) 2011 Monthly Budget 2011 Actual 2010 Actual Cemetery operating revenues totaled $665.5K at the end of October and compares to $615.4K for the same period last year. While 2011 collections are up over last year, the Cemetery ended October with a year‐to‐date operating loss. To address the current year cash flow needs of this fund, the Council approved a transfer of $200,000 from the Cumulative Reserve fund (Ordinance #6378) to the Cemetery fund. $0 $20 $40 $60 $80 $100 $120 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecThousandsCemetery Operating Revenues by Month (2011 vs 2010) 2011 Monthly Budget 2011 Actual 2010 Actual 17 Monthly Financial Report October 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 - 3,148,330 3,466,190 532,073 Rents, Leases, Concessions & Other - 88,806 41,800 1,844,070 TOTAL OPERATING REVENUES - 3,237,136 3,507,990 2,376,143 OPERATING EXPENSES: Administration 313,014 - 205,500 576,010 Operations & Maintenance - 1,776,316 2,837,854 1,072,577 Depreciation & Amortization - - 387,378 687,597 TOTAL OPERATING EXPENSES 313,014 1,776,316 3,430,731 2,336,184 OPERATING INCOME (LOSS)(313,014) 1,460,820 77,259 39,958 NON-OPERATING REVENUES & EXPENSES Interest Revenue 2,707 2,209 6,569 8,122 Other Non Operating Revenue - 46,439 51,234 36,077 Other Non Operating Expense - - - (2,941) TOTAL NON-OPERATING REVENUES (EXPENSES)2,707 48,648 57,803 41,257 INCOME (LOSS) BEFORE CONTRIBUTIONS & TRANSFERS (310,308) 1,509,469 135,062 81,215 Contributions - - 10,538 Transfers In Transfers Out - (537,250) (500,000) (507,000) TOTAL CONTRIBUTIONS & TRANSFERS - (537,250) (500,000) (496,462) CHANGE IN FUND BALANCE (310,308) 972,219 (364,938) (415,247) BEGINNING FUND BALANCE, January 1, 2011 2,366,832 661,686 4,918,922 10,611,968 ENDING FUND BALANCE, October 31, 2011 2,056,524 1,633,905 4,553,984 10,196,721 18 Monthly Financial Report October 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 - 3,148,330 3,466,190 532,073 Rents, Leases, Concessions & Other - 88,806 41,800 1,844,070 TOTAL OPERATING REVENUES - 3,237,136 3,507,990 2,376,143 OPERATING EXPENSES: Salaries & Wages - 545,126 1,045,086 310,584 Benefits 132,633 219,930 365,675 114,950 Supplies - 62,265 132,195 712,021 Other Service Charges 180,382 873,665 1,233,898 316,107 Interfund Operating Rentals/Supplies - 75,330 266,500 194,925 Depreciation & Amortization - - 387,378 687,597 TOTAL OPERATING EXPENSES 313,014 1,776,316 3,430,731 2,336,184 OPERATING INCOME (LOSS)(313,014) 1,460,820 77,259 39,958 NON-OPERATING REVENUES & EXPENSES Interest Revenue 2,707 2,209 6,569 8,122 Other Non Operating Revenue - 22,023 526 33,135 Other Non Operating Expense - - - - TOTAL NON-OPERATING REVENUES (EXPENSES)2,707 24,232 7,095 41,257 Plus Items Not Effecting Working Capital Depreciation - - 387,378 687,597 (310,308) 1,485,052 471,732 768,812 Increase in Contributions -Other Government - 24,417 50,708 - Transfers In - - - TOTAL RESOURCES OTHER THAN OPERATIONS - 24,417 50,708 - Net Change in Restricted Net Assets - 1,200 - (12,269) Increase in Fixed Assets - Equipment - - 299,487 119,831 Increase in Fixed Assets - Construction - - 152,105 5,072 Operating Transfers Out - 537,250 500,000 507,000 TOTAL USES OTHER THAN OPERATIONS - 538,450 951,591 619,633 NET CHANGE IN WORKING CAPITAL (310,308) 971,019 (429,152) 149,179 BEGINNING WORING CAPITAL, January 1, 2011 2,366,832 714,944 3,949,793 5,826,195 ENDING WORKING CAPITAL, October 31, 2011 2,056,524 1,685,963 3,520,641 5,975,374 NET CHANGE IN WORKING CAPITAL (310,308) 971,019 (429,152) 149,179 NET WORKING CAPITAL FROM OPERATIONS The Insurance Fund expenses include a $177.1K 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 $3.2M cover expenses totaling $2.3M (including $537,250 in 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. 19 Monthly Financial Report October 2011 Equipment rental fund balance of $10.2M includes $4.3 M in fixed assets net of depreciation which primarily consists of the City’s fleet vehicles. Contact Information This report is prepared by the Finance Department. Additional financial information can also be viewed at our website: http://www.auburnwa.gov/. For any questions about the report please contact us at mchaw@auburnwa.gov or scoleman@auburnwa.gov. 20 SALES TAX SUMMARYOCT 2011 SALES TAX DISTRIBUTIONS (FOR AUG 2011 RETAIL ACTIVITY)10 Total 10 YTD 11 YTDYTD10 Total 10 YTD11 YTDYTDNAICSCONSTRUCTION (NOV-OCT) (NOV-AUG) (NOV-AUG) % DiffNAICSAUTOMOTIVE(NOV-OCT) (NOV-AUG) (NOV-AUG) % Diff236 Construction of Buildings607,355 496,458 492,713 -0.8% 441 Motor Vehicle and Parts Dealer2,346,944 1,935,524 2,135,928 10.4%237 Heavy and Civil Construction121,822 102,509 77,313 -24.6% 447 Gasoline Stations210,961 172,973 186,715 7.9%238 Specialty Trade Contractors594,645 442,661 485,662 9.7%TOTAL AUTOMOTIVE2,557,905$ 2,108,497$ 2,322,643$ 10.2%TOTAL CONSTRUCTION 1,323,822$ 1,041,628$ 1,055,688$ 1.3%Overall Change from Previous Year214,147$ Overall Change from Previous Year14,060$ 10 Total 10 YTD11 YTDYTD10 Total 10 YTD 11 YTDYTD NAICSRETAIL TRADE(NOV-OCT) (NOV-AUG) (NOV-AUG) % DiffNAICSMANUFACTURING(NOV-OCT) (NOV-AUG) (NOV-AUG) % Diff442 Furniture and Home Furnishings193,852 161,161 184,263 14.3%311 Food Manufacturing2,062 1,721 2,150 25.0% 443 Electronics and Appliances120,703 99,530 110,766 11.3%312 Beverage and Tobacco Products3,610 2,823 3,269 15.8% 444 Building Material and Garden389,137 322,722 317,826 -1.5%313 Textile Mills121 107 1,058 889.0% 445 Food and Beverage Stores351,329 288,850 277,060 -4.1%314Textile Product Mills1,6821,4661,85326.4%446Health and Personal Care Store143,820119,732125,2524.6%314Textile Product Mills1,682 1,466 1,853 26.4%446Health and Personal Care Store143,820 119,732 125,252 4.6%315 Apparel Manufacturing2,202 2,131 2,422 13.7% 448 Clothing and Accessories730,903 604,356 626,489 3.7%316 Leather and Allied Products45 42 167 301.3% 451 Sporting Goods, Hobby, Books116,615 98,719 105,951 7.3%321 Wood Product Manufacturing30,078 26,141 19,484 -25.5% 452 General Merchandise Stores801,501 667,890 819,931 22.8%322 Paper Manufacturing10,842 9,008 10,176 13.0% 453 Miscellaneous Store Retailers504,303 409,202 388,959 -4.9%323 Printing and Related Support43,243 35,548 32,399 -8.9% 454 Nonstore Retailers234,807 192,377 195,198 1.5%324 Petroleum and Coal Products3,320 2,514 8,033 219.5%TOTAL RETAIL TRADE3,586,970$ 2,964,538$ 3,151,696$ 6.3%325 Chemical Manufacturing8,684 6,528 6,575 0.7%Overall Change from Previous Year187,158$ 326 Plastics and Rubber Products9,254 7,535 7,882 4.6%327 Nonmetallic Mineral Products19,031 15,499 12,895 -16.8%331 Primary Metal Manufacturing189 74 246 232.6%10 Total 10 YTD11 YTDYTD332 Fabricated Metal Product Manuf17,110 13,368 16,365 22.4%NAICSSERVICES(NOV-OCT) (NOV-AUG) (NOV-AUG) % Diff333 Machinery Manufacturing13,445 10,472 11,747 12.2% 51* Information (see footnote)978,115 913,249 330,934 -63.8%334 Computer and Electronic Produc12,773 9,198 15,077 63.9% 52* Finance and Insurance68,357 56,877 53,792 -5.4%335 Electric Equipment, Appliances192 135 529 292.7% 53* Real Estate, Rental, Leasing288,013 238,850 246,103 3.0%336 Transportation Equipment Man186,247 143,688 307,505 114.0% 541 Professional, Scientific, Tech188,696 156,704 149,680 -4.5%337 Furniture and Related Products12,784 9,366 9,448 0.9% 551 Company Management165 136 108 -20.1%339 Miscellaneous Manufacturing27,899 24,108 21,134 -12.3% 56* Admin. Supp., Remed Svcs234,384 166,904 251,871 50.9%TOTAL MANUFACTURING404,813$ 321,471$ 490,413$ 52.6%611 Educational Services55,877 39,451 40,520 2.7%,,,,,,Overall Change from Previous Year168,943$ 62* Health Care Social Assistannce37,475 30,226 35,443 17.3%71* Arts and Entertainment153,918 140,598 134,268 -4.5%72* Accomodation and Food Svcs806,733 670,026 696,244 3.9%10 Total 10 YTD 11 YTDYTD81* Other Services 385,105 320,157 323,005 0.9%NAICS TRANSPORTATION AND WAREHOUSING(NOV-OCT) (NOV-AUG) (NOV-AUG) % Diff92* Public Administration109,678 92,499 78,455 -15.2%481 Air Transportation- - 24 N/ATOTAL SERVICES3,306,516$ 2,825,676$ 2,340,425$ -17.2%482 Rail Transportation4,500 4,096 12,650 208.8%Overall Change from Previous Year(485,251)$ 484 Truck Transportation7,660 6,124 34,784 468.0%485 Transit and Ground Passengers57 57 68 20.4%488 Transportation Support13,207 10,730 15,315 42.7%10 Total 10 YTD11 YTDYTD491 Postal Service194 164 170 3.3%NAICSMISCELLANEOUS(NOV-OCT) (NOV-AUG) (NOV-AUG) % Diff492 Couriers and Messengers993 933 1,341 43.8% 000 Unknown754 754 1,958 159.6%493 Warehousing and Storage2,574 2,162 2,607 20.6% 111-115 Agriculture, Forestry, Fishing2,839 1,917 6,991 264.7%TOTAL TRANSPORTATION29,185$ 24,266$ 66,960$ 175.9%211-221 Mining & Utilities22,364 18,616 16,947 -9.0%Overall Change from Previous Year42,694$ 999 Unclassifiable Establishments102,180 90,637 180,822 99.5%TOTAL SERVICES128,138$ 111,924$ 206,718$ 84.7%Overall Change from Previous Year94,794$ 10 Total 10 YTD 11 YTDYTDNAICSWHOLESALE TRADE(NOV OCT)(NOV AUG)(NOV AUG)% DiffNAICSWHOLESALE TRADE(NOV-OCT) (NOV-AUG) (NOV-AUG) % Diff423 Wholesale Trade, Durable Goods1,020,802 823,800 900,446 9.3%GRAND TOTAL12,522,789$ 10,355,875$ 10,672,472$ 424 Wholesale Trade, Nondurable160,317 132,271 126,193 -4.6%Overall Change from Previous Year316,596$ 3.1%425 Wholesale Electronic Markets4,320 1,804 11,288 525.6%TOTAL WHOLESALE1,185,440$ 957,875$ 1,037,928$ 8.4%Overall Change from Previous Year80,052$ 9/20/2011file:Monthly Sales Tax Report.xlsPrepared by Auburn Financial PlanningFootnote: NAICS 51* 2010 data NOT adjusted for Comcast audit adjustment of $339,470, as received for Feb 2010.21 Investment Purchase Purchase Maturity Yield to Type Date Price Date Maturity State Investment Pool Various 84,070,792$ Various 0.11% KeyBank Money Market Various 9,800,754 Various 0.10% US Treasury 05/04/1990 57,750 05/15/2016 5.72% 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 101,929,296$ 0.178% Investment Mix % of Total State Investment Pool 82.5% Current 6-month treasury rate 0.05% KeyBank Money Market 9.6%Current State Pool rate 0.11% US Treasury 0.1%KeyBank Money Market 0.10% FHLB 3.9%Blended Auburn rate 0.18% FHLMC 2.0% FFCB 2.0% 100.0% City of Auburn Investment Portfolio Summary October 31, 2011 Summary 22