HomeMy WebLinkAbout2019 CAFR2019 COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE YEAR ENDED DECEMBER 31, 2019
CITY OF AUBURN
WASHINGTON
COMPREHENSIVE ANNUAL
FINANCIAL REPORT
Fiscal Year January 1, 2019 through December 31, 2019
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Prepared by
City of Auburn Finance Department
Jamie Thomas, Finance Director
City of Auburn: 2019 CAFR Table of Contents
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COMPREHENSIVE ANNUAL FINANCIAL REPORT
For the Year Ended December 31, 2019
TABLE OF CONTENTS
I. INTRODUCTORY SECTION Page
Title Page
Table of Contents ....................................................................................................................................................... i
City Officials ................................................................................................................................................................ 1
Organizational Chart ................................................................................................................................................. 2
Letter of Transmittal ................................................................................................................................................. 3
Certificate of Achievement ....................................................................................................................................... 9
II. FINANCIAL SECTION
Auditor’s Report ....................................................................................................................................................... 11
Management’s Discussion and Analysis .................................................................................................................. 15
Basic Financial Statements
Government-wide Financial Statements:
Statement of Net Position............................................................................................................................. 35
Statement of Activities .................................................................................................................................. 36
Fund Financial Statements:
Governmental Funds
Balance Sheet ............................................................................................................................................. 40
Reconciliation of Balance Sheet of Government Funds to the Statement of Net Position .................... 41
Statement of Revenues, Expenses and Changes in Fund Balances ........................................................ 42
Reconciliation of the Statement of Revenues, Expenditures, and Changes in
Fund Balances of Government Funds to the Statement of Activities .................................................. 43
Statement of Revenues, Expenses and Changes in Fund Balances – Budget and Actual:
General Fund ........................................................................................................................................... 44
Arterial Street Fund ................................................................................................................................ 45
Proprietary Funds:
Statement of Net Position ......................................................................................................................... 48
Statement of Revenues, Expenses, and Changes in Fund Net Position .................................................. 49
Statement of Cash Flows ........................................................................................................................... 50
Fiduciary Funds:
Statement of Fiduciary Net Position ......................................................................................................... 54
Notes to the Financial Statements ................................................................................................................... 55
Required Supplemental Information
Schedule of Proportionate Share of the Net Pension Liability PERS 1 .................................................... 105
Schedule of Proportionate Share of the Net Pension Liability PERS 2/3 ................................................. 105
Schedule of Proportionate Share of the Net Pension Liability LEOFF 1 .................................................. 105
Schedule of Proportionate Share of the Net Pension Liability LEOFF 2 .................................................. 105
Schedule of Employer Contributions PERS 1............................................................................................. 107
Schedule of Employer Contributions PERS 2/3 ......................................................................................... 107
Schedule of Employer Contributions LEOFF 2 .......................................................................................... 107
Schedule of Changes in Total Pension Liability and Related Ratios ........................................................108
Schedule of Changes in Total OPEB Liability and Related Ratios ............................................................109
City of Auburn: 2019 CAFR Table of Contents
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Page
Combining and Individual Fund Financial Statements and Schedules
Non-Major Government Funds:
Combining Balance Sheet .......................................................................................................................... 112
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances .............................. 113
Non-Major Special Revenue Funds:
Combining Balance Sheet .......................................................................................................................... 116
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances .............................. 118
Statement of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual:
Local Street Special Revenue Fund ....................................................................................................... 120
Hotel/Motel Tax Special Revenue Fund ................................................................................................ 121
Arterial Street Preservation Special Revenue Fund .............................................................................. 122
Drug Forfeiture Special Revenue Fund ................................................................................................. 123
Housing & Community Development Special Revenue Fund .............................................................. 124
Recreation Trails Special Revenue Fund ............................................................................................... 125
Business Improvement Area Special Revenue Fund ............................................................................ 126
Cumulative Reserve Special Revenue Fund .......................................................................................... 127
Mitigation Special Revenue Fund .......................................................................................................... 128
Non-Major Debt Service Funds:
Combining Balance Sheet .......................................................................................................................... 130
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances .............................. 131
Capital Project Funds:
Combining Balance Sheet .......................................................................................................................... 134
Combining Statement of Revenues, Expenditures, and Changes in Fund Balance ................................ 135
Permanent Fund:
Balance Sheet ............................................................................................................................................. 138
Statement of Revenues, Expenditures and Changes in Fund Balance .................................................... 139
Non-Major Enterprise Funds:
Combining Statement of Net Position ...................................................................................................... 142
Combining Statement of Revenues, Expenses, and Changes in Net Position ........................................ 143
Combining Statement of Cash Flows ........................................................................................................ 144
Internal Service Funds:
Combining Statement of Net Position ...................................................................................................... 148
Combining Statement of Revenues, Expenses, and Changes in Net Position ........................................ 149
Combining Statement of Cash Flows ........................................................................................................ 150
Fiduciary Fund:
Statement of Changes in Assets and Liabilities ........................................................................................ 154
City of Auburn: 2019 CAFR Table of Contents
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III.STATISTICAL SECTION
Schedule Page
Net Position by Components .................................................................................................................. 1............... 156
Changes in Net Positions ......................................................................................................................... 2............... 157
Fund Balances, Government Funds ........................................................................................................ 3............... 158
Changes in Fund Balances, Government Funds .................................................................................... 4............... 159
Tax Revenues by Source, Government Funds ....................................................................................... 5...............160
Assessed Value by Type.......................................................................................................................... 6............... 161
Property Tax Data.................................................................................................................................... 7............... 162
Property Tax Levies and Collections ...................................................................................................... 8...............164
Principal Taxpayers – Property Taxes .................................................................................................... 9............... 165
Retail Tax Collections by Sector............................................................................................................ 10...............166
Ratios of Outstanding Debt by Type ..................................................................................................... 11............... 167
Computation of Legal Debt Margin ...................................................................................................... 12...............168
Legal Debt Margin Ratios ...................................................................................................................... 13...............168
Computation of Net Direct and Estimated Overlapping Debt ............................................................ 14...............169
Ratios of Net General Bonded Debt to Assessed Value ...................................................................... 15............... 170
Pledged Revenue Bond Coverages ...................................................................................................... 16............... 171
Population, Income and Housing Trends ............................................................................................. 17............... 172
Major Employers.................................................................................................................................... 18............... 173
Staffing Levels by Department ............................................................................................................. 19............... 174
Operating Indicators by Department ...................................................................................................20............... 175
Capital Asset Indicators by Department .............................................................................................. 21............... 176
Utility Customers by Customer Class .................................................................................................... 22............... 176
City of Auburn: 2019 CAFR Table of Contents
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1
CITY COUNCIL
CITY OFFICIALS
MAYOR
Nancy Backus
Claude DaCorsi Chris Stearns Bob Baggett
James Jeyaraj Yolanda Trout-Manuel Larry Brown Robyn Mulenga
DEPARTMENT DIRECTORS
Finance Director Jamie Thomas
City Attorney Kendra Comeau
Human Resources / Risk & Property Mgmt. Director Candis Martinson
Innovation & Technology Director David Travis
Parks, Arts and Recreation Director Daryl Faber
Community Development Director Jeff Tate
Public Works Director Ingrid Gaub
Police Chief Dan O’Neil
Administration Director Dana Hinman
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/ -~,,.>/ WASHINGTON 25 West Main Street* Auburn WA 98001-4998 * www.auburnwa.gov * 253-931-3000
July 30, 2020
Honorable Nancy Backus, Mayor
Members of the Auburn City Council
Citizens of the City of Auburn
25 W Main Street
Auburn, WA 98001
We are pleased to present the City's Comprehensive Annual Financial Report for the year ended December 311 2019.
We publish this financial statement In conformity with generally accepted accounting principles (GAAP). It has been
audited in accordance with generally accepted auditing standards by the Washington State Auditor's Office.
Therefore, we issue and transmit to you the City of Auburn's Comprehensive Annual Financial Report (CAFR) for the
flscal year ended December 31 1 2019. This transmittal letter provides an overview of the report and the financial
condition of the City. It also provides insight Into the history of the City and the economic conditions affecting it, and
describes the systems and controls employed by the Finance department.
The Comprehensive Annual Financial Report has several significant uses. First, it provides a general overview of the
City's finances to the general public and taxpayers. Second, it Is referenced by bond buyers and rating agencies to
evaluate the City's flscal stability and creditworthiness. Finally, the CAFR Is a series of financial statements that have
been audited by the State Auditor's Office and provides assurances that assets are safeguarded and funds are
expended as they were legally appropriated in the biennial budget.
I. INTRODUCTION
A. Management Representation
The Auburn Finance Department prepared the report and accepts complete responsibility for the accuracy,
completeness, and fairness of presentation of the information Included. The data is believed to be accurate in all
material respects, and It is believed that all significant information necessary for an understanding of the affairs and
financial condition of the City has been disclosed. The report has been prepared in conformance with generally
accepted accounting principles and in conformance with financial reporting standards issued by the Governmental
Accounting Standards Board (GASB).
City management has developed and evaluated a comprehensive internal control structure that is designed to protect
the City's assets from loss, theft, or misuse and to compile sufficient reliable Information for the preparation of the
City's financial statements In conformity with generally accepted accounting principles. Because the cost of Internal
controls should not outweigh the benefits, the City's internal control structure is designed to provide reasonable,
rather than absolute, assurance that the financial statements will be free from material misstatement. As
management, we attest that, to the best of our knowledge and belief, this financial report Is complete and reliable in
all material aspects.
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AUBURN* MORE THAN YOU IMAGINED
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Office of the Washington State Auditor
Pat McCarthy
INDEPENDENT AUDITOR’S REPORT ON FINANCIA L STATEMENTS
July 30, 2020
Council
City of Auburn
Auburn, Washington
REPORT ON THE FINANCIAL STATEMENTS
We have audited the accompanying financial statements of the governmental activities, the business-type
activities, each major fund and the aggregate remaining fund information of the City of Auburn, as of
and for the year ended December 31, 2019, and the related notes to the financial statements, which
collectively comprise the City’s basic financial statements as listed in the table of contents.
Management’s Respo nsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with accounting principles generally accepted in the United States of America; this includes
the design, implementation, and maintenance of internal control relevant to the preparation and fair
presentation of financial statements that are free from material misstatement, whether due to fraud or
error.
Auditor’s Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We conducted
our audit in accordance with auditing standards generally accepted in the United States of America and
the standards applicable to financial audits contained in Government Auditing Standards, issued by the
Comptroller General of the United States. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in
the financial statements. The procedures selected depend on the auditor’s judgment, including the
assessment of the risks of material misstatement of the financial statements, whether due to fraud or
error. In making those risk assessments, the auditor considers internal control relevant to the City’s
preparation and fair presentation of the financial statements in order to design audit procedures that are
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appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness
of the City’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating
the appropriateness of accounting policies used and the reasonableness of significant accounting
estimates made by management, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our audit opinions.
Opinion
In our opinion, the financial statements referred to above present fairly, in all material respects, the
respective financial position of the governmental activities, the business-type activities, each major fund
and the aggregate remaining fund information of the City of Auburn, as of December 31, 2019, and the
respective changes in financial position and, where applicable, cash flows thereof, and the respective
budgetary comparison for the General and Arterial Street funds for the year then ended in accordance
with accounting principles generally accepted in the United States of America.
Matters of Emphasis
As discussed in Note 20 to the financial statements, in February 2020, a state of emergency was declared
which could have a negative financial effect on the City. Our opinion is not modified with respect to this
matter.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s
discussion and analysis and required supplementary information listed in the table of contents be
presented to supplement the basic financial statements. Such information, although not a part of the basic
financial statements, is required by the Governmental Accounting Standards Board who considers it to
be an essential part of financial reporting for placing the basic financial statements in an appropriat e
operational, economic or historical context. We have applied certain limited procedures to the required
supplementary information in accordance with auditing standards generally accepted in the United States
of America, which consisted of inquiries of management about the methods of preparing the information
and comparing the information for consistency with management’s responses to our inquiries, the basic
financial statements, and other knowledge we obtained during our audit of the basic financial statements.
We do not express an opinion or provide any assurance on the information because the limited
procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.
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Supplementary and Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the City’s basic financial statements as a whole. The combining and individual fund financial
statements and schedules are presented for the purposes of additional analysis and are not a required part
of the basic financial statements. Such information is the responsibility of management and was derived
from and relates directly to the underlying accounting and other records used to pre pare the financial
statements. This information has been subjected to auditing procedures applied in the audit of the basic
financial statements and certain additional procedures, including comparing and reconciling such
information directly to the underlying accounting and other records used to prepare the financial
statements or to the financial statements themselves, and other additional procedures in accordance with
auditing standards generally accepted in the United States of America. In our opinion, the information
is fairly stated, in all material respects, in relation to the basic financial statements taken as a whole.
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the City’s basic financial statements as a whole. The Introductory and Statistical Sections are
presented for purposes of additional analysis and are not a required part of the basic financial statements
of the City. Such information has not been subjected to the auditing procedures applied in the audit of
the basic financial statements and, accordingly, we do not express an opinion or provide any assurance
on it.
OTHER REPORTING REQUIRED BY GOVERNMENT AUDITING STANDARDS
In accordance with Government Auditing Standards, we will also issue our report dated July 30, 2020,
on our consideration of the City’s internal control over financial reporting and on our tests of its
compliance with certain provisions of laws, regulations, contracts and grant agreements and other
matters. That report will be issued under separate cover in the City’s Single Audit Report. The purpose
of that report is to describe the scope of our testing of internal control over financial reporting and
compliance and the results of that testing, and not to provide an opinion on internal control over financial
reporting or on compliance. That report is an integral part of an audit performed in accordance with
Government Auditing Standards in considering the City’s internal control over financial reporting and
compliance.
Sincerely,
Pat McCarthy
State Auditor
Olympia, WA
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City of Auburn: 2019 CAFR Management’s Discussion and Analysis
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MANAGEMENT’S DISCUSSION AND ANALYSIS
The City of Auburn’s (the “City”) discussion and analysis is designed to:
• Assist the reader in focusing on significant financial issues
• Provide an overview of the City’s financial activity
• Identify changes in the City’s financial position (its ability to meet future years’ challenges)
• Identify any material deviations from the approved budget
• Identify individual fund issues or concerns
Management’s Discussion and Analysis is designed to focus on the current year’s activities, resulting changes and currently
known facts. Therefore, it should be read in conjunction with the Transmittal Letter and the City’s financial statements.
Financial Highlights
• Total government-wide net position – the difference between assets plus deferred outflows and liabilities plus
deferred inflows – equals $737.7 million, an increase of $31.0 million or 4.4%. Of this, a total of $585.1 million, or 79.3%
of total net position, represents net investment in capital assets and includes assets such as utility systems, streets,
buildings, land, vehicles and equipment. An additional $3.4 million of net position is restricted for purposes of
endowment and debt service. Of the remaining $149.3 million of net position, $32.5 million is legally restricted,
restricted by City policy for specific purposes, or is restricted for use by the City’s utilities, and $116.8 million is
unrestricted.
• The net increase in government-wide net position during 2019 was $31.0 million. Of this amount, $1.7 million was
directly related to the increase in City-owned net investment in capital assets, restricted net position increased by
$4.0 million, and unrestricted net position increased by $25.3 million.
• Business-type net position increased by $12.0 million to $271.1 million during 2019 as a result of net capital investment
and net earnings related to the City’s water, sewer and storm water utilities.
• Governmental fund balances at year-end totaled $75.5 million. Of this amount, $19.1 million, or 25.2%, is unassigned
and available to fund ongoing activities. Compared to 2018, total governmental fund balances increased by $5.6
million. This increase reflects the net effect of a general improvement in the regional economy and continued
vigilance in monitoring general spending.
• Total City debt payments during the year, net of compensated absences and other post-employment benefits, were
$8.3 million. Total long-term liabilities, including bonds and loans, totaled $119.5 million at December 31, 2019. The
ending long-term liabilities is a decrease of $0.1 million from 2018 and is largely attributable to the retirement of
bond principal. See note 9 for further information on long-term liability activity during the year.
City of Auburn: 2019 CAFR Management’s Discussion and Analysis
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Other City Highlights:
Parks, Arts and Recreation
• Completed a new classroom building at the White River Valley Museum, funded in part by a grant from the State
of Washington Heritage Capital Fund.
• Added a new synthetic field at Brannan Park, making the baseball field playable year-round, with funding from the
State and King County.
• Initiated a Resource Navigation Program for seniors and veterans at Auburn Senior Center as part of a $1.5 million
grant to be spent over five years.
• Purchased the Auburn Avenue Theater and expanded arts programming.
• Began renovation of the future Auburn Arts and Culture Center and the Auburn Alley project in downtown.
• Installed the “Crow with Fries”, Auburn’s largest public art piece, at the Les Gove Park Campus.
• Began building new forward tees at the Auburn Golf Course for seniors, ladies, and juniors to improve customer
experience and the increase pace of play.
Community Development Services
• Completed a complete upgrade of a 20 year old permit software system that provides enhanced electronic permit
intake, issuance, payments, and review.
• Facilitated that completion of the F Street underpass mural and 16 utility box wraps that are designed to deter
graffiti.
• Processed 2,624 permits, representing more than $181 million in construction investments, and processed
approximately 900 business licenses, completed 2,284 inspections, completed 1,090 code enforcement cases, and
participated in more than 50,000 customer service interactions.
• Notable, active projects in review and/or under construction during the year:
o Auburn Town Center (6 story 226 unit mixed use building)
o Legacy Plaza (7 story 167 units mixed use building)
o Copper Gate multifamily complex (14 buildings with 500 apartment units)
o Huntington Woods 74 lot subdivision
o New Auburn Elementary #15 on Kersey Road
o Dick Scobee Elementary School replacement
o Fieldhouse USA renovation of former Sam’s Club
o Country Meadows 20 unit duplex community
Engineering Services
• Managed street preservation programs that resulted in the average pavement condition index (PCI) increasing from
75 at the end of 2018 to 77 at the end of 2019 for City local streets and from 60 to 63 for City collectors and arterials
over the same period.
• Constructed new sidewalks on Auburn Way North and South to fill gaps in the network.
• Completed 25 capital projects totaling approximately $26 million in capital construction investment.
• Completed construction including 30 lane miles of new/replaced pavement, one new complete traffic signal system,
two rectangular flashing beacon (RRFB) pedestrian crossings, 6,200 linear feet of new/replaced sidewalks and
upgrades to numerous curb ramps.
• Completed the required annual reporting for the United States Environmental Protection Agency National Pollutant
Discharge Elimination System (NPDES) Phase II permit requirements.
City of Auburn: 2019 CAFR Management’s Discussion and Analysis
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Maintenance & Operations Services
• Refreshed all striping on public roads and continued to refresh thermoplastic pavement markings and legends as
needed (overseen by Engineering and completed through contracting with Pierce County).
• Performed uni-directional flushing on the water system in the Lea Hill and Academy service areas, flushing a total of
252,403 feet of main lines.
Airport Services
• Completed bid solicitation for the Airport Runway Enhancement Project and secured FAA grant funding for the
project.
• Updated the Airport website and marketing materials and continued seeking potential development partners for
the development sites at the Airport.
• Completed a financing and capital project plan for the Airport with the Airport Advisory Board to determine project
priorities for the Airport’s limited funds.
• Formed an Airport user group to discuss airport operational topics and issues to improve services.
• Held the annual Airport Appreciation Day on July 6th with 700 to 800 attendees from the community and 170 people
enjoying flights in some capacity.
Overview of the Financial Statements
The City’s basic financial statements are presented in three parts:
1) Government-wide financial statements
2) Fund financial statements
3) Notes to the financial statements
These statements report the City’s net position and changes during the reporting year. The net position is the difference
between assets plus deferred outflows of resources and liabilities plus deferred inflows of resources.
Other supplementary information, in addition to the basic financial statements, is also contained in this report. This section
of the management’s discussion and analysis is intended to introduce and explain the basic financial statements.
Government-wide Financial Statements
The government-wide financial statements are designed to be corporate-like in that all governmental and business-type
activities are consolidated into columns which add to a total for the City. The focus of the Statement of Net Position is
designed to be similar to bottom-line results for the City and its governmental and business-type activities. This statement
combines and consolidates governmental funds’ current financial resources (short-term spendable resources) with capital
assets, deferred outflows of resources, long-term obligations and deferred inflows of resources. Over time, increases or
decreases in net position may be one indicator of improvement or deterioration in the City’s overall financial health.
The Statement of Activities is focused on both the gross and net cost of various functions, including both governmental and
business-type activities, which are supported by the City’s general tax and other revenues. This is intended to summarize
and simplify the user’s analysis of cost of various governmental services and/or subsidy to various business-type activities.
The revenue generated by the specific functions (charges for services, grants, and contributions) is compared to the
expenses for those functions to show how much each function either supports itself or relies on taxes and other general
funding sources for support. All activity on this statement is reported on the accrual basis of accounting, requiring that
City of Auburn: 2019 CAFR Management’s Discussion and Analysis
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revenues are reported when they are earned and expenditures are reported when they are incurred, regardless of when
cash is received or disbursed.
Governmental activities of the City include general government (executive, finance, legal, human resources, and contracted
court), security (police), physical environment, economic environment, transportation, health and human services, and
culture and recreation. The City’s business-type activities include water, sanitary sewer, storm water and solid waste utilities
as well as the operations of an airport and cemetery. Governmental activities are primarily supported by taxes, charges for
services, and grants, while business-type activities are self-supporting through user fees and charges.
Fund Financial Statements
The Fund Financial Statements are the traditional reporting format for governments. A fund is a fiscal and accounting entity
with a self-balancing set of accounts used to account for specific activities or meet certain objectives. While the government-
wide statements present the City’s finances based on the type of activity (general government vs. business type), the Fund
Financial Statements are presented by fund type, such as the general fund, special revenue funds and proprietary funds, with
the focus on major funds.
Governmental Funds are used to account for essentially the same functions that are reported as governmental activities in
the government-wide financial statements. The government major fund is presented utilizing the “sources and uses of liquid
resources” basis. This is the manner in which the budget is typically developed. The basis of accounting is different between
the governmental fund statements and the government-wide financial statements. The governmental fund statements
focus on the near-term revenues/financial resources and expenditures while the government-wide financial statements
include both near-term and long-term revenues/financial resources and expenditures. The information in the governmental
fund statements can be used to evaluate the City’s near-term financing requirements and immediate fiscal health.
Comparing the governmental fund statements with the government-wide statements can help the reader better understand
the long-term impact of the City’s current-year financing decisions.
Because the basis of accounting is different between the governmental fund statements and the government-wide financial
statements, reconciliations are provided. The reconciliation between the governmental fund Balance Sheets and the
government-wide Statement of Net Position is found directly following the governmental funds’ Balance Sheet; the
reconciliation between the governmental fund Statement of Revenues, Expenditures and Changes in Fund Balance and the
government-wide Statement of Activities is found directly following the governmental funds’ Statement of Revenues,
Expenditures, and Changes in Fund Balances.
The City maintains twenty-one individual governmental funds. Of these, three are considered major (the general fund, the
arterial street fund, and the capital improvement projects fund) and are presented separately in the governmental fund
Balance Sheet and the governmental fund Statement of Revenues, Expenditures and Changes in Fund Balances. The
remaining governmental funds are combined into a single column labeled “Other Governmental Funds”. Individual fund
data for each of the other governmental funds can be found in the combining statements later in this report. The City
maintains budgetary control over its operating funds through the adoption of a biennial budget. Budgets are adopted at
the fund level according to state law. Budgetary comparison statements are presented for the general and arterial street
funds as part of the basic financial statements. Other budgetary comparison statements are included following the other
government funds’ combining statements.
City of Auburn: 2019 CAFR Management’s Discussion and Analysis
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Proprietary funds are used by governments to account for their business-type activities and use the same basis of accounting
utilized in private industry. Business-type activities provide specific goods or services to a group of customers that are paid
for by fees charged to those customers. There is a direct relationship between the fees paid and the services rendered.
The City has two types of proprietary funds: enterprise funds and internal service funds. Enterprise funds are used to account
for goods and services provided to citizens, while internal service funds are used to account for goods and services provided
internally to various City departments.
Enterprise funds report the same functions presented as business-type activities in the government-wide statements, but in
greater detail. The City’s enterprise fund statements provide information on the City’s four utilities (water, sanitary sewer,
storm water, and solid waste) as well as the City-owned airport and cemetery.
Internal service funds are an essential accounting tool used to accumulate and allocate costs internally among the City’s
various functions. The City uses internal service funds to account for its fleet of vehicles, maintenance and operation of
facilities, computer hardware and software services, employee costs related to occupational injury or illness, and insurance
premiums. Internal service funds benefit both governmental and business-type activities, and are allocated accordingly in
the government-wide statement of activities.
Fiduciary funds account for assets held by the City in a trustee capacity or as an agent for individuals, private organizations,
other governments or other funds. Fiduciary funds are not included in the government-wide financial statements because
their assets are not available to support the City’s activities.
The City has one fiduciary fund, the agency fund it is accounted for on the accrual basis.
Notes to the Financial Statements
The notes provide additional information that is essential to a full understanding of the data provided in the government-
wide and fund financial statements. The notes to the financial statements can be found at the end of the Basic Financial
Statements section.
Other Information
In addition to the basic financial statements and accompanying notes, this report also presents certain required
supplementary information concerning the budget vs. actual reports of the City’s general fund and major special revenue
funds. The budget vs. actual required supplementary information can be found on pages 44 and 45, and the pension benefit
and other postemployment benefit required supplementary information is found in the required supplemental information
section.
The combining statements referred to earlier in connection with nonmajor governmental funds, nonmajor enterprise funds,
and internal service funds are presented in the section titled “Fund Financial Statements and Schedules”.
City of Auburn: 2019 CAFR Management’s Discussion and Analysis
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Government-wide Financial Analysis
The statement of net position may serve as a useful indicator of the City’s financial position. The overall financial position
has improved for the City of Auburn over the prior year. Changes in Net Position from 2018 to 2019 show an increase in total
net position of $31.0 million or 4.4%. Following is a condensed version of the government-wide statement of net position
with a comparison to 2018:
The largest component of the City’s net position, $585.1 million, or 79.3% is its net investment in capital assets. These
capital assets, such as streets, parks, trails, and vehicles and equipment related to police and public works, are used to
provide services to the citizens. As a result, these assets are not for sale, and are therefore not available to fund current
and future City obligations. The City elected the GASB 34 reporting option to include all general infrastructure of the City
acquired or substantially renovated since 1980.
The largest component of unrestricted net position, $59.8 million, may be used for functions such as public safety employee
salaries and supplies, parks and road maintenance, and other general governmental services. The second largest component
of unrestricted net position, $56.9 million, represents the unrestricted net position of the City’s business-type activities and
may only be spent on activities related to one of the four City utilities (water, sanitary sewer, storm water and solid waste)
or to the City-owned ventures (airport and cemetery). Examples of utility activities include maintenance of water/sewer
mains, pump and lift stations, storm drain flushing, water meter reading, and garbage collection. Activities related to the
other City-owned ventures include maintenance of hangars and runways at the airport, and grooming and landscaping at
the cemetery.
Restricted governmental fund net position is $33.9 million and is restricted for purposes such as capital project construction,
debt service, drug investigation and enforcement, and endowment. Total net investment in capital assets increased by $1.7
million.
As of 12/31/19 As of 12/31/18 As of 12/31/19 As of 12/31/18 As of 12/31/19 As of 12/31/18
Current and other assets 151,098,544$ 136,134,446$ 71,636,428$ 64,189,589$ 222,734,972$ 200,324,035$
Capital assets, net of
accumulated depreciation 401,223,007 405,025,362 238,962,392 237,685,694 640,185,399 642,711,056
Total assets 552,321,551 541,159,808 310,598,820 301,875,283 862,920,371 843,035,091
Deferred Outflows of Resources 2,732,297 2,221,501 858,180 805,391 3,590,477 3,026,892
Long-term liabilities 67,950,863 78,232,970 30,624,946 34,019,802 98,575,809 112,252,772
Other liabilities 13,059,290 10,854,971 8,011,637 7,957,619 21,070,927 18,812,590
Total liabilities 81,010,153 89,087,941 38,636,583 41,977,421 119,646,736 131,065,362
Deferred Inflows of Resources 7,404,879 6,705,141 1,718,451 1,553,327 9,123,330 8,258,468
Net position
Net investment in capital assets 372,887,236 375,208,981 212,172,136 208,136,620 585,059,372 583,345,601
Restricted for:
Capital Projects 30,407,688 27,418,887 - - 30,407,688 27,418,887
Nonexpendable Permanent Endowment 1,826,063 1,775,453 - - 1,826,063 1,775,453
Debt Service 1,917 5,386 1,564,892 1,497,309 1,566,809 1,502,695
Tourist Promotion 249,186 197,675 - - 249,186 197,675
Drug Investigation & Enforce 1,252,739 448,351 - - 1,252,739 448,351
Comm Dev Block Grant 42,904 42,904 - - 42,904 42,904
Central Business Distr Dev 130,916 113,295 - - 130,916 113,295
Rate Stabilization - - 436,817 427,257 436,817 427,257
Unrestricted 59,840,168 42,377,297 56,928,121 49,088,740 116,768,289 91,466,037
Total net position 466,638,817$ 447,588,228 271,101,966$ 259,149,926$ 737,740,783$ 706,738,154$
Governmental Activities Business-type Activities Total
STATEMENT OF NET POSITION
Comparative Analysis of 2019 and 2018
City of Auburn: 2019 CAFR Management’s Discussion and Analysis
21
Changes in Net Position
The change in net position represents the increase or decrease in City net position resulting from its various activities.
Following is a condensed version of the City’s changes in net position. The table shows the revenues, expenditures and
related changes in net position for both governmental-type and business-type activities:
Governmental activities contributed $19.1 million to the total increase in City net position. Revenues to fund capital assets
are recorded as program or general revenues in the statement of activities. However, asset purchases are not recorded as
expenditures in the year purchased and construction costs are not recorded as expenditures in the year incurred. Instead,
the costs are recorded as long-term assets and are depreciated over their useful lives.
2019 2018 2019 2018 2019 2018
Revenues:
Program revenues
Charges for services 16,621,946$ 11,050,781$ 70,315,493$ 69,723,671$ 86,937,439$ 80,774,452$
Operating grants and contributions 3,394,916 2,831,794 106,286 106,286 3,501,202 2,938,080
Capital grants and contributions 6,461,827 9,065,857 6,686,288 4,566,838 13,148,115 13,632,696
General revenues
Property taxes 22,075,276 21,546,734 - - 22,075,276 21,546,734
Sales taxes 22,212,601 21,996,115 - - 22,212,601 21,996,115
Interfund utility taxes 4,760,229 4,552,505 - - 4,760,229 4,552,505
Admission & utility taxes 9,278,114 9,841,620 - - 9,278,114 9,841,620
Excise taxes 5,650,339 4,393,134 - - 5,650,339 4,393,134
Other taxes 4,751,163 5,213,217 - - 4,751,163 5,213,217
Investment earnings 2,134,741 1,657,481 1,387,405 989,564 3,522,146 2,647,045
Miscellaneous revenue 258,502 428,580 1,218,645 602,528 1,477,147 1,031,107
Total revenues 97,599,653 92,577,818 79,714,117 75,988,887 177,313,770 168,566,705
Expenses:
General government 13,292,724 10,191,329 - - 13,292,724 10,191,329
Public safety 24,016,496 30,337,791 - - 24,016,496 30,337,791
Transportation 17,709,231 17,620,176 - - 17,709,231 17,620,176
Physical environment 3,981,499 3,794,576 - - 3,981,499 3,794,576
Culture and recreation 13,400,311 13,665,612 - - 13,400,311 13,665,612
Economic environment 4,457,626 4,140,104 - - 4,457,626 4,140,104
Health and human services 619,247 787,535 - - 619,247 787,535
Interest on long-term debt 1,466,217 1,502,236 - - 1,466,217 1,502,236
Water - - 13,023,888 12,499,974 13,023,888 12,499,974
Sanitary sewer - - 26,907,482 26,213,221 26,907,482 26,213,221
Storm drainage - - 9,126,096 9,374,373 9,126,096 9,374,373
Solid waste - - 15,682,121 15,311,654 15,682,121 15,311,654
Other business-type activities - - 2,628,203 2,186,842 2,628,203 2,186,842
Total expenses 78,943,351 82,039,359 67,367,790 65,586,064 146,311,141 147,625,423
Increase in net position before transfers 18,656,303 10,538,459 12,346,327 10,402,823 31,002,630 20,941,282
Transfers 394,287 414,975 (394,287) (414,975) - -
Change in net position 19,050,590 10,953,434 11,952,040 9,987,848 31,002,630 20,941,282
Net Position, January 1, as Previously Reported 447,588,227 446,024,169 259,149,926 249,162,078 706,738,153 695,186,247
Change in Accounting Principle - (9,389,375) - - - (9,389,375)
Net Position, January 1, as Restated 447,588,227 436,634,794 259,149,926 249,162,078 706,738,153 649,349,553
Net position, December 31 466,638,817$ 447,588,228$ 271,101,966$ 259,149,926$ 737,740,783$ 706,738,154$
Governmental Activities Business-type Activities Total
CHANGES IN NET POSITION
Comparative Analysis of 2019 and 2018
City of Auburn: 2019 CAFR Management’s Discussion and Analysis
22
General tax revenues increased by 1.8% to $68.7 million between 2018 and 2019, compared to a decrease of 0.1% between
2017 and 2018:
• Property tax revenue increased $0.5 million or 2.5%.
• Sales tax collections increased $0.2 million or 1.0%, reflecting modest growth in the economy.
• Utility and admission tax revenue decreased by $0.4 million or 2.5%.
• Excise tax revenue increased by $1.3 million or 28.6%.
• Investment earnings increased by $0.5 million in governmental activities and $0.4 million in business-type activities
for a government-wide increase of $0.9 million. Government-wide miscellaneous revenue increased by $0.5 million
to $1.5 million.
Government-wide expenses decreased by approximately $1.3 million or 0.9% and were largely attributable to vacancies in the
City’s Police Department.
The chart below summarizes the government activity revenue by source, while the chart on the next page reflects the
specific programs’ revenues and related expenses for the various activities of the City. Gaps between specific programs’
revenues and their related expenses are funded through general tax revenues.
Revenues by Source – Government Activities
Charges for Services17%
Capital Grants &
Contributions
7%
Operating Grants &
Contributions
3%
Property Taxes
23%Sales Taxes
23%
Interfund Utility Taxes
5%
Utility & Admission Taxes
9%
Other Taxes11%
Other Revenue
2%
City of Auburn: 2019 CAFR Management’s Discussion and Analysis
23
Program Expenses and Revenues – Governmental Activities
Business-type net position totaled $271.1 million, an increase of 4.6%. Key components of this increase include:
• Business-type revenues increased $3.7 million to $79.7 million due to increases in charges for services, capital grants
and contributions, interest earnings, and miscellaneous revenues.
• Income (loss) before capital contributions and transfers amounted to:
Water fund: $ 2,885,927
Sanitary sewer fund: 710,453
Storm fund: 1,583,774
Solid waste fund: 349,873
Non-major funds: 457,145
$ 5,987,172
• Net transfers totaled ($394,287).
$0
$5
$10
$15
$20
$25
$30
MillionsProgram Revenues
Expenses
City of Auburn: 2019 CAFR Management’s Discussion and Analysis
24
The following chart shows the relative net position balances for each business-type fund:
Business Type Net Position – By Fund
The majority of net position in the City’s enterprise funds relate to capital asset infrastructure, such as water and sewer
mains and the airport runway. As such, most of the net position is not available to support the ongoing expenditures of
the funds.
Following are two charts that contrast the total net position to the spendable portion of net position for each enterprise
fund:
Comparison of Total Net Position to Spendable Net Position
Utility Funds
Water33.2%
Sanitary Sewer
34.0%
Storm Drainage
26.3%
Solid Waste
2.2%
Airport
3.7%
Cemetery
0.7%
$0
$10
$20
$30
$40
$50
$60
$70
$80
$90
$100
Water Sanitary Sewer Storm Drainage Solid WasteMillionsSpendable Net Position
Total Net Position
City of Auburn: 2019 CAFR Management’s Discussion and Analysis
25
Comparison of Total Net Position to Spendable Net Position
The first chart following depicts the revenues and expenditures for business-type funds, while the second shows the
various sources of business-type revenue.
Business Type Activity Revenues and Expenses
Before Capital Contributions and Transfers
$0
$2
$4
$6
$8
$10
$12
Airport CemeteryMillionsSpendable Net Position
Total Net Position
$0
$2
$3
$5
$6
$8
$9
$11
$12
$14
$15
$17
$18
$20
$21
$23
Water Sanitary
Sewer
Storm
Drainage
Solid Waste Golf Course Minor
Business-Type
ActivitiesMillions Revenues
Expenses
City of Auburn: 2019 CAFR Management’s Discussion and Analysis
26
Business Type Activity Revenues
By Source
Financial Analysis of Governmental Funds
The purpose of the City’s governmental funds is to report on near-term revenues/financial resources and expenditures. This
information helps determine the City’s financial requirements in the near future. Specifically, fund balance is a good indicator
of the City’s financial resources.
As of December 31, 2019, the City’s governmental funds had combined fund balances of $75.5 million, an increase of $5.6
million or 8.0% over the previous year. This change was primarily a result of changes in fund balances in the City’s General
Fund ($2.2 million) and Mitigation Fees Fund ($2.2 million). For the City’s General Fund, the increase was largely due to
increases in sales tax receipts ($2.9 milli0n) and revenues from general governmental services ($2.4 million) net of $2.5 million
in higher salary and benefit costs due to a change in how other funds are charged for support department services. For the
City’s Mitigation Fees Fund, it was largely due to $1.6 million in higher-than-expected transportation impact fees received
during the year. The following table shows the changes in fund balance between 2018 and 2019.
Changes in Fund Balance - By Fund
Charges for
Services
87.1%
Capital
Contributions
8.4%
Investment
Earnings
1.7%
Business-type
Miscellaneous
Income
2.8%
2019 2018 Difference
General Fund 36,223,116$ 34,041,633$ 2,181,483$
Arterial Street Fund 1,970,223 2,062,371 (92,148)$
Capital Improvement Fund 13,803,767 13,325,664 478,103$
Mitigation Fund 14,104,088 11,881,782 2,222,306$
Cemetery Endowment Fund 1,989,046 1,896,829 92,217$
All Other Government Funds 7,455,998 6,742,006 713,992$
Total 75,546,238$ 69,950,285$ 5,595,953$
City of Auburn: 2019 CAFR Management’s Discussion and Analysis
27
Of the government funds’ total fund balances, $19.1 million is unassigned. Nonspendable, restricted, committed and
assigned fund balances total $56.4 million. Of this $56.4 million, $15.8 million is earmarked for capital projects, $21.7 million
is in special revenue funds that are earmarked for specific purposes and $1.8 million is for endowment.
The general fund is the primary operating fund of the City. All receipts and payments of ordinary City operations are
processed through it unless they are required to be accounted for in another fund. At the end of 2019, the general fund had
a fund balance of $36.2 million, $17.1 million of which is assigned, and $19.1 million is unassigned.
Other funds that had significant fund balances include:
• $13.8 million in the capital improvement projects fund; used for various governmental capital asset projects.
• $23.5 million in all other government funds; used primarily for local street improvements, local revitalization funding
and maintenance of cemetery.
The general fund balance of $36.2 million increased by $2.2 million from the prior year. Revenues increased due to growth in
property taxes, charges for services, intergovernmental revenues, and miscellaneous revenues. At the same time,
expenditures increased over 2018 due to inflation and programmatic changes. Meanwhile, the City continues its vigilance in
monitoring general expenditure activity.
The following chart shows the relative fund balances for governmental funds:
Governmental Funds – Fund Balances
General Fund
48%
Arterial Street Fund
2%
Capital Improvement
Fund
18%
Mitigation Fund
19%
Cemetery Endowment Fund
3%
All Other
Government Funds
10%
City of Auburn: 2019 CAFR Management’s Discussion and Analysis
28
General fund revenue increased by $6.2 million, sources of which are shown in the chart below. Property taxes increased by
$.5 million while sales taxes increased by $2.5 million from 2018. Utility and other taxes decreased by a net of $0.3 million.
Licenses and Permits increased by $1.0 million due to increases in building permit fees and plumbing permits. Charges for
Services increased by $2.7 million, Fines & Forfeitures essentially remained unchanged, Intergovernmental Revenues
decreased by $0.4 million and Miscellaneous Revenues increased by $0.2 million largely due to interest earnings.
2019 General Fund Revenue Changes – By Source
Financial Analysis of Proprietary Funds
The City’s proprietary funds provide the same type of information as found in the government-wide financial statements,
but in greater detail. Factors affecting the finances of the City’s proprietary funds have already been addressed in the
discussion of the City’s business-type activities.
Property Taxes
$484,286
Sales Taxes$2,522,219
Interfund
Utility Taxes
$164,712
Utility &
Admission Taxes
($144,356)
Licenses & Permits$971,850
Charges for Services
$2,736,064
Fines & Forfeitures($5,947)
Intergovernmental
($441,454)
Miscellaneous$241,151
($800,000)
($600,000)
($400,000)
($200,000)
$0
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
$1,400,000
$1,600,000
$1,800,000
$2,000,000
$2,200,000
$2,400,000
$2,600,000
$2,800,000
$3,000,000
City of Auburn: 2019 CAFR Management’s Discussion and Analysis
29
General Fund Budgetary Highlights
The City budgets biennially by adopting two single-year budgets at the end of each even-numbered year and then making
adjustments as necessary via budget amendments throughout the next two years. Major amendments to the 2019 budget
included:
• Budgeted General Fund expenditures and transfers out increased from $77.7 million to $80.0 million. Significant
changes include expenditures associated with new grants, homeless sheltering, new staff additions, and salary and
benefit adjustments.
Reasons for the variances in the general fund between the final budget and actual results include:
• Actual General Fund revenues totaled $76.0 million, or 3.7% above budget. Significant areas of favorable variance
include sales and use taxes, which exceeded budget by $397,000; building, plumbing, and street/curb permits, which
exceeded budget by $479,000; criminal justice sales taxes, which exceeded budget by $254,000; investment income,
which exceeded budget by $266,000; excavation permits, which exceeded budget by $415,000; and development
service fees, which were $293,000 above budget. In addition, there was a one-time payment of $373,000 from the
state for annexation sales taxes from 2018. Areas of unfavorable variance include Streamlined Sales Tax mitigation
payments, which were $405,000 below budget and telephone B&O taxes, which were $256,000 under budget.
• Actual General Fund expenditures totaled $74.0 million and were under budget by $5.9 million. Departments
experienced savings due to continued vigilance in monitoring city-wide expenditures. Significant areas of under-
expenditure include reduced personnel costs – largely due to vacancies – and reduced professional services
contracts and other miscellaneous expenditures.
Capital Asset and Debt Administration
Capital Assets
The City’s investment in capital assets for both its governmental and business-type activities as of December 31, 2019 totaled
$640.2 million (net of accumulated depreciation), a decrease of $2.5 million from 2018. This investment in capital assets
includes land, buildings, improvements, machinery and equipment, construction in progress, utility transmission/distribution
systems, roads, bridges, and other infrastructure.
Major capital asset changes during the year include:
• Developer contributions resulted in an increase of $3.3 million in utility infrastructure assets and $2.2 million in
governmental infrastructure assets.
• $7.7 million was spent by proprietary funds on construction projects during the year.
• $10.6 million was spent by governmental funds on construction projects during the year. Some of the larger projects
in the governmental funds include:
$1.8 million on Citywide Pavement Patching and Overlay
$1.7 million on Local Street Pavement Reconstruction
$1.4 million on A Street SE Preservation, Phase I
$0.7 million on Brannan Park Synthetic Infield
$0.6 million on Auburn Way South Sidewalk Improvements
$0.3 million on Les Gove Park Improvements
City of Auburn: 2019 CAFR Management’s Discussion and Analysis
30
A summary of the City’s capital assets follows:
More detailed information on capital assets is provided in Note 7.
Long-term Debt
At the end of the current fiscal year, the City had total net bonded debt outstanding of $66.5 million. Of this amount, $17.8
million is due to other governments, $24.8 million is general obligation bonds, and $23.9 million is revenue bonds for the
water, sewer and storm utilities. The City currently maintains a rating of Aa3 with Moody’s and a rating of AA+ with Standard
& Poor’s for its general obligation debt.
The following schedule summarizes the City’s bonded debt:
Below is a summary of additional, non-bonded long-term debt of the City:
Washington State law limits the amount of general obligation debt a governmental entity may issue to 7.5% of its total
assessed value. Of the 7.5% limit, 2.5% is for general purposes, 2.5% is for open spaces/parks, and 2.5% is for utilities. Non-
voted (limited tax) general obligation indebtedness is limited to 1.5% of assessed valuation. The combination of unlimited
tax and limited tax general obligation debt for all purposes cannot exceed 7.5% of assessed valuation.
Additional information can be found in note 9 and in the statistical section of this report.
Summary of Capital Assets (net of depreciation)
As of 12/31/19 As of 12/31/2018 As of 12/31/19 As of 12/31/2018 As of 12/31/19 As of 12/31/2018
Land 108,893,205$ 108,890,255$ 12,543,322$ 12,533,022$ 121,436,527$ 121,423,277$
Building 50,732,565 52,263,933 1,790,725 1,913,127 52,523,290 54,177,060
Site improvements 9,656,970 7,598,551 213,327,058 214,830,090 222,984,028 222,428,641
Equipment 8,915,018 8,909,039 268,881 282,411 9,183,899 9,191,450
Intangibles (263,198) (116,595) 5,954,358 5,701,772 5,691,160 5,585,177
Infrastructure 216,774,848 218,495,564 - - 216,774,848 218,495,564
Construction in progress 6,513,599 8,984,615 5,078,048 2,425,272 11,591,647 11,409,887
401,223,007$ 405,025,362$ 238,962,392$ 237,685,694$ 640,185,399$ 642,711,056$
Governmental Activities Business-type Activities Total
Summary of Bonded Debt
Governmental
Activities
Business-type
Activities Total
General obligation bonds 24,831,185$ -$ 24,831,185$
Revenue bonds - 23,860,000 23,860,000
Due to other governments 17,838,617$ - 17,838,617
42,669,802$ 23,860,000$ 66,529,802$
Other Long-Term Debt
Public Works Trust Fund loans 8,264,306$
Capital Leases 173,692
8,437,998$
City of Auburn: 2019 CAFR Management’s Discussion and Analysis
31
Economic Factors
Over the past year, economic conditions continued to improve locally. Real property values, which had finally recovered to
pre-recession levels by 2016, grew an additional 8.6% in 2019, and property tax receipts grew by 2.3%. Retail sales tax receipts
grew by 18.7%, and the rate of unemployment in the County and City remained low. At the same time, building permit
revenues increased by 34% reflecting greatly improved construction activity relative to 2018.
While general economic conditions in the region improved in 2019 and the economic outlook for the City is generally positive,
significant challenges to the City’s overall financial condition remain. Most notable among these is the impact of the COVID-
19 pandemic that began in early 2020 and whose effects cannot be measured or predicted with any certainty at this time. In
addition, several areas at the Federal and State levels of government continue to cast a shadow, including the ongoing
disagreements within the United States Congress on finding a long-term solution to fund governmental services as well as –
at the State level – long-term fiscal challenges for addressing holes left by one-time budget fixes in the current budget and
the need to fund basic education mandates. Additionally, the State and City continue to grapple with the financial impacts
of the phase-out of streamlined sales tax revenue distributions to cities and the uncertainty of sales tax receipts on out-of-
state sales under the new Marketplace Fairness Act.
Therefore, although the City has seen significant private investments in the community, including development within
several blocks in downtown that will serve as a catalyst for future redevelopment, the City remains cautious and continues
to vigilantly monitor and control its expenditures in order to live within the City’s means.
Requests for Information
This financial report is designed to provide a general overview of the City of Auburn’s finances for readers with an interest in
the City’s finances. Questions concerning this report, or requests for additional information, may be addressed to the
Finance Director, City of Auburn, 25 West Main Street, Auburn WA 98001-4998.
City of Auburn: 2019 CAFR Management’s Discussion and Analysis
32
City of Auburn: 2019 CAFR Basic Financial Statements
33
GOVERNMENT-WIDE FINANCIAL STATEMENTS
The City presents two government-wide financial statements.
The Statement of Net Position
This statement provides information all on city assets and liabilities, with the difference between the
two reported as net position.
The Statement of Activities
This statement is focused on both the gross and net cost of various functions, including both
governmental and business-type activities, which are supported by the City’s general tax and other
revenues.
City of Auburn: 2019 CAFR Basic Financial Statements
34
City of Auburn: 2019 CAFR Basic Financial Statements
35
Governmental Business-Type
Activities Activities Total
ASSETS:
Cash and Cash Equivalents (Note 3)47,225,749$ 42,832,547$ 90,058,296$
Investments (Note 3)19,288,650 10,967,898 30,256,548
Receivables
Taxes 311,754 - 311,754
Customer Accounts 612,179 10,031,364 10,643,543
Other Receivables 2,613,801 33,957 2,647,758
Special Assessments 1,730 - 1,730
Due From Other Governmental Units (Note 6)3,133,578 107,483 3,241,061
Internal Balances (192,163) 192,163 -
Materials and Supplies Inventory 334,701 248,996 583,697
Restricted Assets:
Temporarily Restricted:
Cash and Cash Equivalents (Note 3)25,530,340 6,598,620 32,128,960
Due From Other Governmental Units (Note 6)1,044,336 - 1,044,336
Permanently Restricted:
Cash and Cash Equivalents (Note 3)1,826,063 - 1,826,063
Prepaids 328,063 - 328,063
Long-Term Contracts and Notes - 623,400 623,400
Net Pension Asset (Note 10)11,081,510 - 11,081,510
Investment in Joint Ventures (Note 15)37,958,253 - 37,958,253
Depreciable Capital Assets (Net of Accumulated Depreciation) (Note 7)285,816,203 215,386,664 501,202,867
Non-Depreciable Capital Assets (Note 7)115,406,804 23,575,728 138,982,532
Total Assets 552,321,551 310,598,820 862,920,371
DEFERRED OUTFLOWS OF RESOURCES:
Deferred Outflows related to Pensions (Note 10)2,732,297 858,180 3,590,477
Total Deferred Outflow of Resources 2,732,297 858,180 3,590,477
LIABILITIES:
Accounts Payable 6,535,930 3,593,912 10,129,842
Other Liabilities Payable 2,365,232 - 2,365,232
Accrued Interest - 1,353,171 1,353,171
Deposits - 237,457 237,457
Bonds and Other Debt Payable:
Due Within One Year (Note 9)3,520,473 2,827,097 6,347,570
Due in More Than One Year (Note 9)27,373,431 27,470,928 54,844,359
Due to Other Governmental Units:
Due Within One Year (Note 9)637,655 - 637,655
Due in More Than One Year (Note 9)17,200,962 - 17,200,962
Net Penion Liability (Note 10)6,221,663 3,154,018 9,375,681
Firemen's Pension Liability (Note 10)3,452,448 - 3,452,448
Total OPEB Liability (Note 11)13,702,359 - 13,702,359
Total Liabilities 81,010,153 38,636,583 119,646,736
DEFERRED INFLOWS OF RESOURCES:
Deferred Inflows related to Pensions (Note 10)7,404,879 1,718,451 9,123,330
Total Deferred Inflows of Resources 7,404,879 1,718,451 9,123,330
NET POSITION
Net Investment in Capital Assets 372,887,236 212,172,136 585,059,372
Restricted:
Capital Projects 30,407,688 - 30,407,688
Nonexpendable Permanent Endowment 1,826,063 - 1,826,063
Debt Service 1,917 1,564,892 1,566,809
Tourist Promotion 249,186 - 249,186
Drug Investigation and Enforcement 1,252,739 - 1,252,739
Community Development Block Grant Program 42,904 - 42,904
Central Business District Development 130,916 - 130,916
Rate Stabilization - 436,817 436,817
Unrestricted 59,840,168 56,928,121 116,768,289
Total Net Position 466,638,817$ 271,101,966$ 737,740,783$
The notes to the basic financial statements are an integral part of this statement.
Primary Government
City of Auburn, WashingtonSTATEMENT OF NET POSITION
December 31, 2019
City of Auburn: 2019 CAFR Basic Financial Statements
36
Charges Operating Capital
for Services Grants and Grants and
Expenses and Fines Contributions Contributions
FUNCTIONS / PROGRAMS:
Primary Government
Governmental Activities:
General Government 13,292,724$ 3,758,197$ 284,362$ 353,437$
Public Safety 24,016,496 3,240,007 2,391,609 13,161
Transportation 17,709,231 3,207,197 18,524 4,226,943
Physical Environment 3,981,499 503,798 15,355 917,438
Culture and Recreation 13,400,311 3,183,370 630,354 457,627
Economic Environment 4,457,626 2,729,376 54,712 (38,000)
Health and Human Resources 619,247 - - 531,221
Interest on Long-Term Debt 1,466,217 - - -
78,943,351 16,621,946 3,394,916 6,461,827
Business-Type Activities
Water 13,023,888 15,058,352 - 3,246,853
Sanitary Sewer 26,907,482 26,559,461 - 2,417,611
Storm Drainage 9,126,096 10,110,490 - 1,021,824
Solid Waste 15,682,121 15,847,088 106,286 -
Nonmajor Business-Type Activities 2,628,203 2,740,102 - -
67,367,790 70,315,493 106,286 6,686,288
Total Primary Government 146,311,141$ 86,937,439$ 3,501,202$ 13,148,115$
General Revenues:
Taxes:
Property
Retail Sales and Use
Interfund Utility
Utility
Excise
Other
Investment Earnings
Other Revenues
Gain on Sale of Capital Assets
Contributions to Endowment Funds
Transfers (Note 5)
Total General Revenues
Change in Net Position
Net Position, January 1
Net Position, December 31
The notes to the basic financial statements are an integral part of this statement.
Program Revenues
City of Auburn, Washington
STATEMENT OF ACTIVITIES
For the Year Ended December 31, 2019
Page 1 of 2
City of Auburn: 2019 CAFR Basic Financial Statements
37
Governmental Business-Type
Activities Activity Total
(8,896,728)$ -$ (8,896,728)$
(18,371,719) - (18,371,719)
(10,256,567) - (10,256,567)
(2,544,908) - (2,544,908)
(9,128,960) - (9,128,960)
(1,711,538) - (1,711,538)
(88,026) - (88,026)
(1,466,217) - (1,466,217)
(52,464,662) - (52,464,662)
- 5,281,317 5,281,317
- 2,069,590 2,069,590
- 2,006,218 2,006,218
- 271,253 271,253
- 111,899 111,899
- 9,740,277 9,740,277
(52,464,662)$ 9,740,277$ (42,724,385)$
22,075,276$ -$ 22,075,276$
22,212,601 - 22,212,601
4,760,229 - 4,760,229
9,278,114 - 9,278,114
5,650,339 - 5,650,339
4,751,163 - 4,751,163
2,134,741 1,387,405 3,522,146
177,154 1,218,645 1,395,799
30,738 - 30,738
50,610 - 50,610
394,287 (394,287) -
71,515,252 2,211,763 73,727,015
19,050,590 11,952,040 31,002,630
447,588,227 259,149,926 706,738,153
466,638,817$ 271,101,966$ 737,740,783$
Changes in Net Position
Net (Expense) Revenue and
Page 2 of 2
City of Auburn: 2019 CAFR Basic Financial Statements
38
City of Auburn: 2019 CAFR Basic Financial Statements
39
MAJOR GOVERNMENTAL FUNDS
General Fund
The general fund accounts for all of the City's financial resources except those required by statute or
generally accepted accounting principles to be accounted for in another fund. As is the case with most
municipalities, the general fund is the largest and most important accounting entity of the City. As
noted in the statements that follow, the general fund receives the bulk of its revenues from local taxes,
followed by State shared revenues, service charges, and other income.
The general fund is accounted for on a modified accrual basis. Biennial budgets are adopted
with appropriations lapsing at the end of each year of the biennium.
Arterial Street Fund
This fund is supported by the State of Washington’s motor vehicle fuel tax and by various grants
and is used for major street construction.
Capital Improvement Projects Fund
This fund accounts for major capital acquisitions, and streets and parks construction projects.
City of Auburn: 2019 CAFR Basic Financial Statements
40
Other Total
General Arterial Capital Governmental Governmental
Fund Street Improvement Funds Funds
ASSETS:
Cash and Cash Equivalents 16,326,901$ 2,075,979$ 13,693,328$ 24,252,772$ 56,348,980$
Investments (Note 3)17,774,830 - - 1,513,820 19,288,650
Receivables:
Taxes 311,754 - - - 311,754
Customer Accounts 449,181 - 8,679 81,015 538,875
Other Receivables 2,273,331 - - 298,438 2,571,769
Special Assessments - - - 1,730 1,730
Interfund Receivable (Note 5)100,000 - 11,627 - 111,627
Inventories 36,097 - - - 36,097
Due From Other Governmental Units (Note 6)3,110,872 69,760 201,163 773,413 4,155,208
Total Assets 40,382,966 2,145,739 13,914,797 26,921,188 83,364,690
LIABILITIES, DEFERRED INFLOWS AND FUND BALANCES:
Liabilities:
Current Payables 2,793,500 175,516 111,030 1,313,371 4,393,417
Customer Deposits 275,413 - - - 275,413
Interfund Payable (Note 5)- - - 100,000 100,000
Other Liabilities Payable 10,426 - - 1,956,955 1,967,381
Total Liabilities 3,079,339 175,516 111,030 3,370,326 6,736,211
Deferred Inflow of Resources:
Unavailable Revenue-Special Assessments - - - 1,730 1,730
Unavailable Revenue-Other 1,080,511 - - - 1,080,511
Total Deferred Inflow of Resources 1,080,511 - - 1,730 1,082,241
Fund Balances: (Note 1)
Nonspendable 36,097 - - - 36,097
Nonspendable Permanent Endowment - - - 1,826,063 1,826,063
Restricted - 1,970,223 12,453,057 17,662,070 32,085,350
Committed - - - 3,172,152 3,172,152
Assigned 17,118,273 - 1,350,710 888,847 19,357,830
Unassigned 19,068,746 - - - 19,068,746
Total Fund Balances:36,223,116 1,970,223 13,803,767 23,549,132 75,546,238
Total Liabilities, Deferred Inflows and Fund Balances 40,382,966$ 2,145,739$ 13,914,797$ 26,921,188$ 83,364,690$
The notes to the basic financial statements are an integral part of this statement.
City of Auburn, Washington
BALANCE SHEET
GOVERNMENTAL FUNDS
December 31, 2019
City of Auburn: 2019 CAFR Basic Financial Statements
41
Total governmental fund balances as reported on this statement 75,546,238$
Amounts reported for governmental activities in the statement of net position are different because:
Capital assets used in governmental activities are not financial resources and therefore 392,669,088
not reported in the governmental funds.
Other non-current assets used in governmental activities are not financial resources and therefore are
not reported in the governmental funds.
Investment in Joint Ventures 20,119,636
Prepaids 328,063
Interest receivable on investments 42,032
Net pension asset 7,629,062
28,118,793
Other long-term assets are not available to pay for current-period expenditures and therefore
are reported as unavailable revenue in the governmental funds.
Unearned revenue beyond the city's 30-day measurable and available period 1,080,511
Unavailabe revenue reported for special assessments 1,730
1,082,241
Internal service funds are used by management to charge the cost of certain activities, such as insurance, fleet
maintenance and information technology, to individual funds. The assets and liabilities of these internal service 23,281,318
funds are included in governmental activities in the statement of net position.
Some liabilities are not due and payable in the current period and therefore are not reported
in the governmental funds.
Bonds and loans payable (28,276,561)
Premium on Bonds Payable (33,602)
Deferred amount on bond refunding 0
Deferred amounts related to pensions (4,321,657)
Interest payable (122,438)
Net pension liability (5,327,425)
Net other postemployment obligations (13,702,359)
Compensated absences payable (2,274,818)
(54,058,860)
Net position of government activities as reported on the statement of net position 466,638,817$
The notes to the basic financial statements are an integral part of this statement.
RECONCILIATION OF BALANCE SHEET OF GOVERNMENT FUNDS TO THE STATEMENT OF NET POSITION
December 31, 2019
City of Auburn, Washington
City of Auburn: 2019 CAFR Basic Financial Statements
42
Other Total
General Arterial Capital Governmental Governmental
Fund Street Improvement Funds Funds
REVENUES:
Taxes:
Property 21,907,038$ -$ -$ 150,803$ 22,057,841$
Retail Sales & Use 21,958,107 - - 254,494 22,212,601
Interfund Utility 4,080,196 - - 680,033 4,760,229
Utility 8,013,692 - - 1,264,422 9,278,114
Excise 574,365 - 4,934,748 141,226 5,650,339
Other - - - 73,577 73,577
Licenses and Permits 2,825,404 - - - 2,825,404
Intergovernmental 6,184,231 1,285,973 717,642 2,950,095 11,137,941
Charges for Services 7,533,100 - 8,679 2,925,424 10,467,203
Fines and Forfeitures 914,240 - - - 914,240
Special Assessments - - - 2,807 2,807
Investment Earnings 933,545 42,765 297,347 494,085 1,767,742
Miscellaneous 1,265,078 - 6,901 1,134,312 2,406,291
Total Revenues 76,188,996 1,328,738 5,965,317 10,071,278 93,554,329
EXPENDITURES:
Current:
General Government 12,688,544 - - - 12,688,544
Security of Persons and Property 36,025,359 - - 296,666 36,322,025
Physical Environment 4,372,251 - - - 4,372,251
Transportation 3,705,687 1,786,791 - 6,149,378 11,641,856
Economic Environment 3,808,850 - - 890,702 4,699,552
Health and Human Services 619,247 - - - 619,247
Culture and Recreation 12,437,720 - - - 12,437,720
Debt Service:
Principal 64,391 197,376 - 1,175,766 1,437,533
Interest and Other Costs 17,401 10,746 - 1,450,022 1,478,169
Capital Outlay 22,964 - 1,908,740 1,338,425 3,270,129
Total Expenditures 73,762,414 1,994,913 1,908,740 11,300,959 88,967,026
Excess (Deficiency) of Revenues
Over (Under) Expenditures 2,426,582 (666,175) 4,056,577 (1,229,681) 4,587,303
OTHER FINANCING SOURCES (USES):
Insurance Recoveries 127,895 - - 49,259 177,154
Transfers In (Note 5)120,456 717,223 203,413 5,436,672 6,477,764
Transfers Out (Note 5)(493,450) (143,196) (3,781,887) (1,227,735) (5,646,268)
Total Other Financing Sources and Uses (245,099) 574,027 (3,578,474) 4,258,196 1,008,650
Net Change in Fund Balances 2,181,483 (92,148) 478,103 3,028,515 5,595,953
Fund Balances - January 1, as Previously Reported 34,041,633 2,062,371 13,325,664 20,520,617 69,950,285
Fund Balances - Ending 36,223,116$ 1,970,223$ 13,803,767$ 23,549,132$ 75,546,238$
The notes to the basic financial statements are an integral part of this statement.
City of Auburn, Washington
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
GOVERNMENTAL FUNDS
For the Year Ended December 31, 2019
City of Auburn: 2019 CAFR Basic Financial Statements
43
Net change in fund balances per the Statement of Revenues, Expenditures and Changes in Fund Balance 5,595,953$
Amount reported as change in net position in the Statement of Activities are different because:
Governmental funds report capital outlays as expenditures. However, in the statement
of activities the cost of those assets is allocated over their estimated useful lives and
reported as depreciation expense. This is the amount by which capital outlay ($10,686,911)
exceeded depreciation ($16,664,473) in the current period.(5,977,562)
Certain Capital and Joint Venture activities do not use or provide current financial resources
but increase net position.9,981,370
Revenues in the Statement of Activities that do not provide current financial resources
are not reported as revenues in the funds:
Property taxes 17,435
Special assessments (3,220)
Other unavailable revenue 25,205
Amortization of bond premium 5,600
Investment interest receivable (14,266)
30,753
Developer contributions and annexation of infrastructure assets are reported as revenue in the statement
of activities, but do not provide current financial resources and are not reported as fund revenue.2,211,011
Repayment of the principal of long-term debt consumes the current financial resources of
governmental funds but has no effect on the net position. 1,432,137
Internal service funds are used by management to charge the costs of certain activities,
such as insurance and fleet maintenance, to individual funds. The net revenue (expense)
of certain internal service funds is reported with governmental activities.1,052,595
Some expenses reported in the Statement of Activities do not require the use of current
financial resources and therefore are not reported as expenditures in governmental funds.
Amortization of prepaids (109,355)
Change in accrued interest payable 4,503
Change in net pension obligation or asset 2,339,772
Change in net other postemployment benefits 2,526,506
Change in compensated absences payable (37,094)
4,724,332
Change in net position on the Statement of Activities 19,050,590$
The notes to the basic financial statements are an integral part of this statement.
City of Auburn, Washington
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN
FUND BALANCES OF GOVERNMENT FUNDS TO THE STATEMENT OF ACTIVITIES
For the Year Ended December 31, 2019
City of Auburn: 2019 CAFR Basic Financial Statements
44
Variance with
Final Final Budget
Original Adopted Actual Positive
(GAAP Basis)(GAAP Basis)Results (Negative)
REVENUES:
Taxes:
Property 21,550,000$ 21,825,000$ 21,907,038$ 82,038$
Retail Sales & Use 20,840,500 20,840,500 21,958,107 1,117,607
Interfund Utility 4,035,600 4,035,600 4,080,196 44,596
Utility 8,311,900 8,311,900 8,013,692 (298,208)
Excise 465,500 288,500 574,365 285,865
Licenses and Permits 1,837,900 1,837,900 2,825,404 987,504
Intergovernmental 5,782,600 6,444,450 6,103,845 (340,605)
Charges for Services 7,026,980 7,206,090 7,533,100 327,010
Fines and Forfeitures 859,500 859,500 914,240 54,740
Investment Earnings 348,700 350,500 617,432 266,932
Miscellaneous 980,900 1,049,700 1,265,078 215,378
Total Revenues 72,040,080 73,049,640 75,792,497 2,742,857
EXPENDITURES:
Current:
General Government 13,009,763 13,809,100 12,688,544 1,120,556
Security of Persons and Property 37,709,746 37,902,446 35,819,459 2,082,987
Physical Environment 4,734,283 4,907,683 4,372,251 535,432
Transportation 4,041,472 4,041,472 3,705,687 335,785
Economic Environment 3,827,098 4,764,821 3,808,850 955,971
Health and Human Services 1,135,092 769,222 619,247 149,975
Culture and Recreation 12,788,801 13,042,151 12,437,720 604,431
Debt Service 79,400 79,400 81,792 (2,392)
Capital Outlay 10,000 85,000 22,964 62,036
Total Expenditures 77,335,655 79,401,295 73,556,514 5,844,781
Excess (Deficiency) of Revenues
Over (Under) Expenditures (5,295,575) (6,351,655) 2,235,983 8,587,638
OTHER FINANCING SOURCES (USES):
Insurance Recoveries 25,000 125,000 127,895 2,895
Transfers In (Note 5)80,906 120,506 120,456 (50)
Transfers Out (Note 5)(452,510) (576,810) (493,450) 83,360
Total Other Financing Sources and Uses (346,604) (331,304) (245,099) 86,205
Net Change in Fund Balances (5,642,179) (6,682,959) 1,990,884 8,673,843
Fund Balances - Beginning 18,037,042 21,650,276 21,650,276 -
Fund Balances - Ending 12,394,863$ 14,967,317$ 23,641,160$ 8,673,843$
RECONCILIATION OF PERSPECTIVE DIFFERENCE BETWEEN BUDGETARY INFORMATION AND
GENERALLY ACCEPTED ACCOUNTING PRINCIPLES (GAAP):
The Cumulative Reserve Fund is combined with
the General Fund for purposes of GASB Statement 54 10,425,515
The Fire, Relief & Pension Fund is combined with
the General Fund for purposes of GASB Statement 73 2,156,441
Fund Balance - Ending (GAAP)36,223,116$
The notes to the basic financial statements are an integral part of this statement.
Budget Amounts
For the Year Ended December 31, 2019
City of Auburn, Washington
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
GENERAL FUND
City of Auburn: 2019 CAFR Basic Financial Statements
45
Variance with
Final Final Budget
Original Adopted Actual Positive
(GAAP Basis)(GAAP Basis)Results (Negative)
REVENUES:
Intergovernmental $1,059,450 $2,969,781 $1,285,973 ($1,683,808)
Investment Earnings 28,300 28,300 42,765 14,465
Total Revenues 1,087,750 2,998,081 1,328,738 (1,669,343)
EXPENDITURES:
Current:
Transportation 1,573,100 5,074,958 1,786,791 3,288,167
Debt Service
Principal 197,400 197,400 197,376 24
Interest and Other Costs 10,900 10,900 10,746 154
Total Expenditures 1,781,400 5,283,258 1,994,913 3,288,345
Excess (Deficiency) of Revenues
Over (Under Expenditures (693,650) (2,285,177) (666,175) 1,619,002
OTHER FINANCING SOURCES (USES):
Transfers In (Note 5)545,350 1,595,960 717,223 (878,737)
Transfers Out (Note 5)- (143,196) (143,196) -
Total Other Financing Sources and Uses 545,350 1,452,764 574,027 (878,737)
Net Change in Fund Balances (148,300) (832,413) (92,148) 740,265
Fund Balances - Beginning 1,492,777 2,062,371 2,062,371 -
Fund Balances - Ending 1,344,477$ 1,229,958$ 1,970,223$ 740,265$
The notes to the basic financial statements are an integral part of this statement.
Budget Amounts
For the Year Ended December 31, 2019
City of Auburn, Washington
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
ARTERIAL STREET FUND
City of Auburn: 2019 CAFR Basic Financial Statements
46
City of Auburn: 2019 CAFR Basic Financial Statements
47
MAJOR PROPRIETARY FUNDS
ENTERPRISE FUNDS
The City's enterprise funds are used to account for operations that are financed and operated in a
manner similar to private business operations. The goods and services these funds provide to the
general public are primarily financed by service charges. Enterprise funds are self-supporting and use
the accrual method of accounting. Auburn has four major enterprise funds.
The Water Fund
This fund accounts for all maintenance, construction, and debt service requirements associated with
Auburn’s water system.
The Sanitary Sewer Fund
This fund accounts for maintenance, construction, and debt requirements for Auburn's sanitary sewer
system.
The Storm Drainage Fund
This fund accounts for the maintenance, construction and debt service requirements of Auburn's
storm drainage system.
The Solid Waste Fund
Garbage collection services for the City are accounted for in this fund, supported almost entirely by
garbage collection fees. Expenses include payment to the City's garbage contractor and other service
charges.
City of Auburn: 2019 CAFR Basic Financial Statements
48
Governmental
Activities
Non-Major Total
Sanitary Storm Solid Enterprise Enterprise Internal
Water Sewer Drainage Waste Funds Funds Service Funds
ASSETS:
Current Assets
Cash and Cash Equivalents 9,568,609$ 13,572,363$ 12,738,639$ 4,788,609$ 2,164,327$ 42,832,547$ 18,233,172$
Investments - 6,578,855 4,389,043 - - 10,967,898 -
Restricted Cash:
Bond Payments 1,672,123 534,067 800,093 - - 3,006,283 -
Customer Deposits 40,062 77,353 3,422 - 116,620 237,457 -
Other 1,627,520 516,075 1,211,285 - - 3,354,880 -
Customer Accounts 1,912,797 3,971,951 1,631,660 2,502,447 12,509 10,031,364 73,304
Other Receivables - 19,200 14,757 - - 33,957 -
Due From Other Governmental Units - - - 60,674 46,809 107,483 22,706
Inventories 189,071 9,220 9,099 - 41,606 248,996 298,604
Total Current Assets 15,010,182 25,279,084 20,797,998 7,351,730 2,381,871 70,820,865 18,627,786
Noncurrent Assets
Long-Term Contracts and Notes - 623,400 - - - 623,400 -
Capital Assets:
Land 897,971 1,695,023 5,937,014 - 4,013,314 12,543,322 -
Intangible - Water Rights 5,954,358 - - - - 5,954,358 -
Buildings and Equipment 2,509,599 1,304,180 290,575 496,617 4,076,062 8,677,033 26,795,740
Improvements Other Than Buildings 145,175,810 106,432,969 82,903,631 - 11,162,095 345,674,505 451,264
Construction in Progress 3,488,784 243,140 648,531 - 697,593 5,078,048 34,727
Less: Accumulated Depreciation (61,794,767) (36,119,969) (30,484,869) (487,208) (10,078,061) (138,964,874) (18,727,810)
Total Capital Assets (Net of A/D)96,231,755 73,555,343 59,294,882 9,409 9,871,003 238,962,392 8,553,921
Total Noncurrent Assets 96,231,755 74,178,743 59,294,882 9,409 9,871,003 239,585,792 8,553,921
Total Assets 111,241,937 99,457,827 80,092,880 7,361,139 12,252,874 310,406,657 27,181,707
DEFERRED OUTFLOW OF RESOURCES:
Deferred Outflow related to Pensions 296,941 187,172 274,851 49,420 49,796 858,180 297,246
296,941 187,172 274,851 49,420 49,796 858,180 297,246
LIABILITIES:
Current Liabilities:
Current Payables 971,724 515,602 578,689 1,415,035 112,862 3,593,912 1,210,513
Claims Payable (Incurred but not Reported)- - - - - - 932,000
Interfund Payables (Note 5)- - - - 11,627 11,627 -
Loans Payable - Current 467,646 288,262 - - - 755,908 -
Employee Leave Benefits - Current 128,188 94,806 154,609 - 18,586 396,189 223,826
Revenue Bonds Payable - Current 935,347 287,235 452,418 - - 1,675,000 -
Payable From Restricted Assets:
Accrued Interest 754,158 251,338 347,675 - - 1,353,171 -
Deposits 40,062 77,353 3,422 - 116,620 237,457 -
Other Liabilities Payable - - - - - - 25,610
Total Current Liabilities 3,297,125 1,514,596 1,536,813 1,415,035 259,695 8,023,264 2,391,949
Noncurrent Liabilities
Employee Leave Benefits 34,069 25,197 41,091 - 4,940 105,297 59,487
Loans Payable 2,697,219 1,513,884 - - - 4,211,103 -
Revenue Bonds Payable 12,972,571 3,631,296 6,550,661 - - 23,154,528 -
Net Pension Liability 1,937,559 599,334 527,198 87,217 2,710 3,154,018 894,238
Total Noncurrent Liabilities 17,641,418 5,769,711 7,118,950 87,217 7,650 30,624,946 953,725
Total Liabilities 20,938,543 7,284,307 8,655,763 1,502,252 267,345 38,648,210 3,345,674
DEFERRED INFLOW OF RESOURCES:
Deferred Inflow related to Pensions 639,878 372,964 548,150 67,602 89,857 1,718,451 648,171
NET POSITION:
Net Investment in Capital Assets:80,831,095 68,368,733 53,091,896 9,409 9,871,003 212,172,136 8,528,311
Restricted for:
Debt Service 873,362 264,737 426,793 - - 1,564,892 -
Rate Stabilization - - 436,817 - - 436,817 -
Unrestricted 8,256,000 23,354,258 17,208,312 5,831,296 2,074,465 56,724,331 14,956,797
Total Net Position 89,960,457$ 91,987,728$ 71,163,818$ 5,840,705$ 11,945,468$ 270,898,176$ 23,485,108$
Adjustment to reflect the consolidation
of internal service funds related to
enterprise funds 203,790
Net position of business-type activities 271,101,966$
The notes to the basic financial statements are an integral part of this statement.
City of Auburn, WashingtonSTATEMENT OF NET POSITIONPROPRIETARY FUNDS
December 31, 2019
Enterprise Funds
City of Auburn: 2019 CAFR Basic Financial Statements
49
Governmental
Activities
Non-Major Total
Sanitary Storm Solid Enterprise Enterprise Internal
Water Sewer Drainage Waste Funds Funds Service Funds
OPERATING REVENUES:
Charges of Services 15,057,517$ 26,559,461$ 10,110,490$ 15,847,088$ 1,843,691$ 69,418,247$ 14,033,409$
Other Operating Revenue 835 - - - 896,411 897,246 250,797
Total Operating Revenue 15,058,352 26,559,461 10,110,490 15,847,088 2,740,102 70,315,493 14,284,206
OPERATING EXPENSES:
Operations & Maintenance 3,789,093 19,553,676 3,509,728 13,812,771 1,662,348 42,327,616 11,125,575
Administration 4,727,971 4,519,668 3,230,505 1,850,531 475,119 14,803,794 1,021,838
Depreciation / Amortization 3,848,016 2,275,905 2,092,443 18,819 457,891 8,693,074 1,556,194
Other Operating Expenses - - - - 18,049 18,049 -
Total Operating Expenses 12,365,080 26,349,249 8,832,676 15,682,121 2,613,407 65,842,533 13,703,607
Operating Income (Loss)2,693,272 210,212 1,277,814 164,967 126,695 4,472,960 580,599
NON-OPERATING REVENUE (EXPENSE):`
Interest Revenue 261,654 451,889 518,073 106,106 49,683 1,387,405 387,970
Other Non-Operating Revenue 589,809 279,452 81,307 78,800 295,563 1,324,931 164,832
Gain on Sale of Capital Assets - - - - - - 30,738
Interest Expense (658,808) (231,100) (293,420) - - (1,183,328) (1,468)
Other Non-Operating Expenses - - - - (14,796) (14,796) -
Total Non-Operating Revenue (Expense)192,655 500,241 305,960 184,906 330,450 1,514,212 582,072
Income (Loss) Before Contributions & Transfers 2,885,927 710,453 1,583,774 349,873 457,145 5,987,172 1,162,671
Capital Contribution 3,246,853 2,417,611 1,021,824 - - 6,686,288 -
Transfers In (Note 5)39,258 - - - 350,000 389,258 325,667
Transfers Out (Note 5)(147,002) (64,119) (138,357) (10,797) (423,270) (783,545) (762,876)
Change in Net Position 6,025,036 3,063,945 2,467,241 339,076 383,875 12,279,173 725,462
Net Position, January 1 83,935,421 88,923,783 68,696,577 5,501,629 11,561,593 258,619,003 22,759,646
Net Position, December 31 89,960,457$ 91,987,728$ 71,163,818$ 5,840,705$ 11,945,468$ 270,898,176$ 23,485,108$
Change in net position from this statement 12,279,173
Adjustment to reflect the consolidation of internal service fund
activities related to enterprise funds (327,133)
Change in net position of business-type activities 11,952,040$
The notes to the basic financial statements are an integral part of this statement.
City of Auburn, Washington
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION
PROPRIETARY FUNDS
For the Year Ended December 31, 2019
Enterprise Funds
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Page 1 of 2
Government
Non Major Activities
Sanitary Storm Solid Enterprise Internal
Water Sewer Drainage Waste Funds Total Service Funds
CASH FLOWS FROM OPERATING ACTIVITIES:
Cash Received from Users 14,991,609$ 26,085,724$ 9,584,802$ 15,122,021$ 2,744,307$ 68,528,463$ 14,351,208$
Cash Paid to Suppliers for Goods & Services (4,475,496) (21,444,326) (2,682,963) (15,276,912) (1,134,716) (45,014,413) (7,492,481)
Cash Paid for Taxes - - - - (18,063) (18,063) -
Cash Paid to Employees (4,183,678) (2,698,923) (4,054,845) (527,527) (1,091,774) (12,556,747) (5,181,656)
Other Cash Received 76,352 - - - - 76,352 200,408
Other Non-Operating Revenue - - - - 39,252 39,252 -
Net Cash Provided (Used) by Operating Activities 6,408,787 1,942,475 2,846,994 (682,418) 539,006 11,054,844 1,877,479
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:
Interfund Loan Payable - - - - (41,583) (41,583) -
Operating Grant 523,727 279,452 184,650 67,443 256,311 1,311,583 20,000
Transfers In 39,258 - - - 350,000 389,258 325,667
Transfers Out (147,002) (64,119) (138,357) (10,797) (423,270) (783,545) (762,876)
Net Cash Provided (Used) by Noncapital Financing Activities 415,983 215,333 46,293 56,646 141,458 875,713 (417,209)
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES:
Proceeds from Sale of Equipment - - - - - - 64,661
Purchase of Capital Assets (3,849,136) (959,198) (1,556,347) - (350,156) (6,714,837) (1,585,050)
Contributed Capital 1,279,873 1,523,284 628,194 - - 3,431,351 -
Capital Grants - - - - 4,953 4,953 -
Proceeds from Insurance Settlement 4,068 - - - - 4,068 1,353
Principal Payment on Debt (1,552,106) (563,221) (437,948) - (186,420) (2,739,695) -
Interest Payment on Debt (744,204) (251,665) (338,465) - (3,878) (1,338,212) (1,468)
Debt Proceeds 39,258 - - - - 39,258 -
Net Cash Provided (Used) for Capital and Related Financing Activities (4,822,247) (250,800) (1,704,566) - (535,501) (7,313,114) (1,520,504)
CASH FLOW FROM INVESTING ACTIVITIES:
Proceeds from Sale of Investments - - 3,019,604 - - 3,019,604 -
Purchase of Investments - (4,499,802) (2,499,824) - - (6,999,626) -
Interest Received 261,654 377,496 390,474 106,106 49,683 1,185,413 387,970
Net Cash Provided (Used) in Investing Activities 261,654 (4,122,306) 910,254 106,106 49,683 (2,794,609) 387,970
Net Increase (Decrease) in Cash and Cash Equivalents 2,264,177 (2,215,298) 2,098,975 (519,666) 194,646 1,822,834 327,736
Cash and Cash Equivalents - Beginning of Year 10,644,137 16,915,156 12,654,464 5,308,275 2,086,301 47,608,333 17,905,436
Cash and Cash Equivalents - End of Year 12,908,314$ 14,699,858$ 14,753,439$ 4,788,609$ 2,280,947$ 49,431,167$ 18,233,172$
CASH AT END OF YEAR CONSISTS OF:
Cash and Cash Equivalents 9,568,609 13,572,363 12,738,639 4,788,609 2,164,327 42,832,547 18,233,172
Restricted Cash - Bond Payments 1,672,123 534,067 800,093 - - 3,006,283 -
Restricted Cash - Customer Deposits 40,062 77,353 3,422 - 116,620 237,457 -
Restricted Cash - Other 1,627,520 516,075 1,211,285 - - 3,354,880 -
Total Cash 12,908,314$ 14,699,858$ 14,753,439$ 4,788,609$ 2,280,947$ 49,431,167$ 18,233,172$
The notes to the basic financial statements are an integral part of this statement.
City of Auburn, Washington
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
For the Fiscal Year Ended December 31, 2019
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Page 2 of 2
Government
Non Major Activities
Sanitary Storm Solid Enterprise Internal
Water Sewer Drainage Waste Funds Total Service Funds
RECONCILIATION OF NET OPERATING INCOME TO NEW CASH
PROVIDED BY OPERATING ACTIVITIES
Operating Income (Loss)2,693,272$ 210,212$ 1,277,814$ 164,967$ 126,695$ 4,472,960$ 580,599$
ADJUSTMENTS TO RECONCILE OPERATING INCOME TO
NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES:
Depreciation 3,848,016 2,275,905 2,092,443 18,819 457,891 8,693,074 1,556,194
Other Non-Operating Revenue 70,535 - - - 39,252 109,787 192,380
Asset (Increases) Decreases:
Accounts Receivable (60,926) (455,790) (525,688) (725,067) (12,079) (1,779,550) 75,030
Inventory (5,819) (904) (4,304) - (33,902) (44,929) (61,398)
Liability Increases (Decreases):
Accounts & Vouchers Payable 127,936 122,973 290,171 (52,912) 9,405 497,573 (70,346)
Deposits Payable - (17,947) - - 16,284 (1,663) -
Wages & Benefits Payable (260,192) (168,980) (266,123) (56,629) (66,257) (818,181) (337,690)
Compensated Absences Payable (4,035) (22,994) (17,319) (31,596) 1,717 (74,227) (57,290)
Total Adjustments 3,715,515 1,732,263 1,569,180 (847,385) 412,311 6,581,884 1,296,880
Net Cash Provided (Used) by Operating Activities 6,408,787$ 1,942,475$ 2,846,994$ (682,418)$ 539,006$ 11,054,844$ 1,877,479$
SCHEDULE OF NONCASH INVESTING, CAPITAL AND
FINANCING ACTIVITIES
Capital Assets Acquired by Contributed Capital 1,966,980 894,327 393,630 - - 3,254,937 -
Increase (Decrease) in Fair Value of Investment - 74,393 127,599 - - 201,992 -
Total Non Cash Investing, Capital and Financing Activities 1,966,980$ 968,720$ 521,229$ -$ -$ 3,456,929$ -$
The notes to the basic financial statements are an integral part of this statement.
City of Auburn, Washington
STATEMENT OF CASH FLOWS
For the Fiscal Year Ended December 31, 2019
PROPRIETARY FUNDS
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City of Auburn: 2019 CAFR Basic Financial Statements
53
FIDUCIARY FUNDS
Fiduciary funds are used to account for assets held by the City of Auburn as a trustee or agent for
various individuals, private organizations, and other governmental units.
FIDUCIARY FUNDS
Agency Fund
This fund accounts for the funds over which the City is strictly a short-term custodian. The agency fund is
custodial in nature.
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Agency
Fund
ASSETS:
Cash and Cash Equivalents 1,329,046$
Receivables:
Customer Accounts 14,165
Total Assets 1,343,211
LIABILITIES:
Current Payables 896,538
Due to Other Governmental Units 446,673
Total Liabilities 1,343,211
The notes to the financial statements are an integral part of this statement.
City of Auburn, Washington
STATEMENT OF FIDUCIARY NET POSITION
December 31, 2019
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City of Auburn
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2019
Note 1 – Summary of Significant Accounting Policies ........................................................................................................ 56
A. Reporting Entity ........................................................................................................................................... 56
B. Basic Financial Statements .......................................................................................................................... 56
C. Measurement Focus, Basis of Accounting, and Basis of Presentation ..................................................... 57
D. Budget and Budgetary Accounting ............................................................................................................. 59
E. Assets, Liabilities and Fund Balance ............................................................................................................ 60
1. Deposits and Investments .................................................................................................................... 60
2. Receivables ............................................................................................................................................ 61
3. Interfund Receivables and Payables .................................................................................................... 61
4. Amounts Due From Other Governmental Units .................................................................................. 61
5. Inventories and Prepaid Expenses ....................................................................................................... 61
6. Restricted Assets .................................................................................................................................. 61
7. Interfund Transactions ......................................................................................................................... 61
8. Capital Assets ........................................................................................................................................ 62
9. Pensions ................................................................................................................................................ 62
10. Deferred Outflows/Inflows of Resources ............................................................................................ 62
11. Compensated Absences ....................................................................................................................... 63
12. Unearned Revenues.............................................................................................................................. 63
13. Net Position Components – Proprietary Funds ................................................................................... 63
14. Fund Balance Components – Governmental Funds ............................................................................ 63
F. Revenues, Expenditures and Expenses ...................................................................................................... 65
G. Estimates ...................................................................................................................................................... 66
Note 2 – Stewardship, Compliance and Accountability ................................................................................................... 66
Note 3 – Deposits and Investments .................................................................................................................................. 66
Note 4 – Property Taxes .................................................................................................................................................... 69
Note 5 – Interfund Activity ................................................................................................................................................. 71
Note 6 – Due From Other Governmental Units ................................................................................................................ 73
Note 7 – Capital Assets and Depreciation ......................................................................................................................... 74
Note 8 – Capital Lease Obligation ..................................................................................................................................... 75
Note 9 – Long-Term Liabilities ........................................................................................................................................... 76
Note 10 – Pension Plans ...................................................................................................................................................... 80
Note 11 – Other Post-Employment Benefits ...................................................................................................................... 91
Note 12 – Association of Washington Cities Employment Benefit Trust .......................................................................... 93
Note 13 – Construction Commitments ............................................................................................................................... 95
Note 14 – Cemetery Endowed Care Fund ........................................................................................................................... 95
Note 15 – Joint Ventures / Related Party ............................................................................................................................ 95
Note 16 – Jointly Governed Organization / Related Party ................................................................................................ 101
Note 17 – Contingencies and Litigations ........................................................................................................................... 101
Note 18 – Risk Management and Insurance ...................................................................................................................... 101
Note 19 – Tax Abatements ................................................................................................................................................ 103
Note 20 – Subsequent Events ............................................................................................................................................ 103
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NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The City of Auburn, King County, Washington, was incorporated in 1891. It operates under the laws of the State of Washington
applicable to a Non-Charter Code City under a Mayor/Council form of government. A full-time mayor and seven part-time council
members administer Auburn, all elected at-large to four-year terms. The City provides a range of municipal services authorized
by state law, including water services, sanitary sewer collection, solid waste collection, storm drainage, a general aviation airport,
a municipal cemetery and a municipal golf course.
The accounting and reporting policies of the City of Auburn, which conform to Generally Accepted Accounting Principles (GAAP)
for governments, are regulated by the Washington State Auditor’s Office.
The City’s significant accounting policies are described in the following notes.
A. Reporting Entity
In accordance with the criteria set forth in Statement No. 14 of the Governmental Accounting Standards Board (GASB) the City’s
Comprehensive Annual Financial Report (CAFR) includes all funds controlled by the City.
Joint Ventures - Based on the criteria of Governmental Accounting Standards Board (GASB) Statement No. 14 as modified by GASB
Statements No. 34 and 61, the Valley Communications Center and South Correctional Entity Facility (SCORE) are included in the
accompanying government-wide statement of net position as a joint venture. (Refer to Notes 9 and 15).
Jointly Governed Organizations - The cities of Auburn, Algona and Pacific formed the Valley Regional Fire Authority (VRFA) effective
January 1, 2007. The VRFA is a separate municipal corporation of the State of Washington, organized as a regional fire protection
service authority under RCW 52.26. The VRFA is not financially accountable to the member cities, none of the participating cities
has an ongoing financial interest in the VRFA, and the VRFA is not financially dependent upon any member city. The VRFA imposes
its own property tax levy and fire benefit charge. As such, the VRFA is not included in the City of Auburn’s financial reporting
entity.
The government-wide financial statements consist of the government-wide statement of net position and the government-wide
statement of activities.
B. Basic Financial Statements
The City’s basic financial statements consist of government-wide financial statements and fund financial statements. The
government-wide financial statements, which include the statement of net position and the statement of activities, summarize
the entire operation of the City. The governmental fund financial statements, which include the balance sheet, statement of
revenues, expenditures and changes in fund balance, and statements of revenues, expenditures and changes in fund balance
budget and actual, provide a more detailed level of reporting. The proprietary fund financial statements, which include statement
of net position, statement of revenues, expenses, and changes in net position and statement of cash flows, provide a more
detailed level of reporting.
The government-wide financial statements report information on all of the non-fiduciary activities of the City. For the most part,
the effect of interfund activity has been eliminated from these statements. Because governmental activities are normally
supported by taxes and intergovernmental revenue, while business-type activities are generally supported through user fees and
charges, governmental activities are reported separately from business-type activities on all government-wide financial
statements.
The Statement of Net Position reports the assets, deferred outflows of resources, deferred inflows and liabilities of the primary
government. The net position section of this statement represents the residual amount of assets and their associated liabilities,
deferred outflow and deferred inflows of resources. The net position section is divided into three categories. The first category
is Net Investment in Capital Assets, which includes all capital assets, net of accumulated depreciation, less the outstanding balances
of any borrowing (bonds, loans) used for acquisition, construction, or improvement of those assets. Capital assets cannot readily
be sold and converted into cash. The second category is Restricted Net Position, which includes those assets, net of their related
debt that have a constraint placed on their use. The constraints are either: 1) externally imposed by creditors, such as through
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debt covenants, grantors, contributors, or laws and regulations of other governments, or 2) imposed by law through
constitutional provisions or enabling legislation. The final section is Unrestricted Net Position, and this represents net position that
generally can be used for any purpose. However, they are not necessarily in a spendable form, such as cash.
The statement of activities demonstrates the degree to which the direct expenses of various functions and activities of the City
are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or activity. The
City’s policy is to allocate indirect costs to a specific function or segment. Program revenues include 1) charges to customers or
applicants who purchase, use, or directly benefit from goods, services or privileges provided by a function or activity, and 2) grants
and contributions that are restricted to meeting the operational or capital requirements of a particular function or activity. Taxes
and other items that are not properly included among function or activity revenues are instead reported as general revenues.
Separate financial statements are included for governmental funds, proprietary funds, and fiduciary funds, even though fiduciary
funds are excluded from the government-wide financial statements. Major individual governmental funds and major individual
enterprise funds are reported in separate columns in the fund financial statements.
C. Measurement Focus, Basis of Accounting and Basis of Presentation
The accounts of the City are organized on the basis of funds, each of which is considered a separate accounting entity. Each fund
is accounted for with a separate set of self-balancing accounts that comprise its assets, liabilities, fund balance/equity, revenue,
and expenditures or expenses, as appropriate. The City resources are allocated to, and accounted for in, individual funds
according to the purpose for which they are spent and how they are controlled.
The basis of accounting refers to the timing of when revenues and expenditures or expenses are recognized in the accounts and
reported in the financial statements.
The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis
of accounting, as are the proprietary fund financial statements. Governmental fund financial statements are reported using the
current financial resources measurement focus and the modified accrual basis of accounting.
The modified accrual basis of accounting is followed in all governmental and permanent funds of the City. Under the modified
accrual basis of accounting, revenues are recognized when measurable and available. Revenues are generally considered
available if they are collected within the current period or soon enough thereafter (30 days) to pay current liabilities. For derived
tax revenues, such as sales tax and utility business and occupation taxes, revenues are recognized in the period when the
underlying exchange has occurred. For imposed non-exchange taxes, such as property taxes, revenues are recognized when the
use of resources is permitted, or when resources are available. Grant revenue is recognized in the period in which the expenditure
occurs and the eligibility requirements have been met. Non-exchange transactions, such as contributions, are recognized when
the donation eligibility requirements have been satisfied. Those specific major revenue sources accrued are:
Property Taxes – King County and Pierce County collect property taxes and remit to the City daily or monthly.
Sales Tax Revenues – The State of Washington collects all sales taxes. Auburn’s portion is remitted to the City by the State monthly.
The sales tax received in January is recognized as revenue in current year even though received in the subsequent year because
of when the underlying transaction occurred and the resources are considered to be measurable and available.
Grant Revenues – On cost reimbursement grants, grant revenue is recognized when the eligible expenditure is incurred.
Under the modified accrual basis, expenditures are recorded when the fund liability is incurred, except for the un-matured interest
and principal on general long-term debt, which is recognized when due, and for compensated absences which are recorded as
expenditures when liquidated from expendable available fund resources. Purchases of capital assets from governmental funds
are reported as expenditures during the year incurred and the asset is capitalized and reported on the government-wide
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statement of net position. Long-term liabilities, including compensated absences not currently due and payable, are also reported
on the government-wide statement of net position.
The accrual basis of accounting is followed in all proprietary and agency funds. Under the accrual basis of accounting, revenues
are recognized when earned and expenses are recorded when incurred.
The three broad fund categories and nine fund types presented in this report are described below:
1. Governmental Fund Types
All governmental funds are accounted for on a spending or “financial flow” measurement focus. This means that only current
assets and current liabilities and deferred inflow of resources generally are included on these balance sheets. Reported fund
balance is considered a measure of “available spendable resources”. Governmental fund operating statements focus on
measuring cash flows rather than net income; and present increases (revenues and other financing sources) and decreases
(expenditures and other financing uses) in net current assets.
a. General fund – This fund is used to account for all financial resources and transactions of the City not accounted for
in another fund, as required. The general fund is always considered a major fund.
b. Special Revenue funds – These funds are used to account for the proceeds of specific revenue sources (other than
major capital projects) that are legally restricted to expenditures for specified purposes. One special revenue fund
is considered major: the arterial street fund. This fund is supported by the State of Washington’s motor vehicle fuel
tax and by various grants is used for major street construction.
c. Debt Service funds – These funds account for the accumulation of resources for, and the payment of, general long-
term and special assessment debt principal, interest, and related costs. These funds also include the local
improvement districts (LID) guarantee fund which provides financial security for outstanding LID bonds. No debt
service funds are considered major funds and are reported within the “Other Governmental Funds”.
d. Capital Projects funds – These funds are used to account for financial resources to be used for the acquisition or
construction of major capital facilities other than those financed by proprietary funds. One capital project fund is
considered major: the capital improvement projects fund. This fund accounts for major capital acquisitions, and
street and parks construction projects.
e. Permanent funds – These funds are used to account for resources that are legally restricted to the extent that only
earnings, and not principal, may be used for purposes of supporting a specific City program. The city has one
permanent fund, Cemetery Endowment.
2. Proprietary Fund Types
Financial statements for proprietary funds use the economic resources measurement focus and the accrual basis of
accounting. This means that all assets and all liabilities (whether current or non-current) associated with proprietary fund
activity are included on the Statement of Net Position. Under the accrual basis of accounting, revenues are recognized when
earned and expenses are recorded when incurred. The economic resources measurement focus is applied in the
determination of financial position, net income, and cash flow.
Proprietary funds distinguish operating revenues and expenses from non-operating items. Operating revenues and expenses
generally result from providing services and producing and delivering goods in connection with a proprietary fund’s principal
ongoing operations. The principal operating revenue of the City’s utility funds, other enterprise funds, and internal service
funds are charges to customers for sales and services, vehicle and computer replacement, and insurance. Operating expenses
for enterprise funds and internal service funds include the cost of sales and services, administrative expenses, taxes, and
depreciation on capital assets. All revenues and expenses not meeting this definition are reported as non-operating revenues
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and expenses, or as capital contributions. Substantially all proprietary fund operating revenues are used as security for
revenue bonds.
GASB Statement No. 62 Codification of Accounting and Financial Reporting Guidance Contained in Pre-November 30, 1989 FASB
and AICPA Pronouncements, provides a codification of private-sector standards of accounting and financial reporting issued
prior to December 1, 1989, to be followed in the financial statements of proprietary fund types. The City has adopted
provisions of GASB Statement No. 62.
a. Enterprise funds – These funds are used to account for services to the general public where all or most of the costs,
including depreciation, are to be financed or recovered from users of such services. Four enterprise funds are
considered major funds. Utilities provided to residents are accounted for in the water fund, sanitary sewer fund,
storm drainage fund, and the solid waste fund.
b. Internal Service funds – These funds are used to account for the financing of goods and services provided to other
funds, departments, or governments on a cost reimbursement basis. The City uses internal service funds to account
for its fleet of vehicles, its maintenance and operation of facilities, the City-wide provision of computer hardware and
software services, the cost of employees affected by an occupational injury or illness, and its insurance premiums.
3. Fiduciary Fund Types
Fiduciary funds are used to account for assets held by the City in a trustee capacity or as an agent for individuals, private
organizations, other governments, and/or other funds. Fiduciary funds are classified for accounting measurement purposes
as either a governmental fund or a proprietary fund. The city has a fiduciary fund, an Agency Fund. The Agency fund is
custodial in nature on behalf of another individual, entity, or government and does not involve a measurement of results of
operations.
D. Budget and Budgetary Accounting
The City of Auburn budgets in accordance with the Revised Code of Washington (RCW) 35A.33 for the general fund and special
revenue funds. For governmental funds, there are no substantial differences between the budgetary basis and generally accepted
accounting principles. Budgetary accounts are integrated in fund ledgers for all budgeted funds, but the financial statements
include budgetary comparisons for the biennial budgeted governmental funds only. Budgets established for proprietary and trust
funds are “management budgets”, and are not legally required to be reported and, as such, are not reported in the CAFR.
The biennial budget is proposed by the Mayor and adopted by the City Council with legal budgetary control at the fund level; i.e.,
expenditures and other financing sources may not exceed budgeted appropriations at the fund level. The Mayor may authorize
transfers within funds; however, the City Council must approve by ordinance any amendments that increase the total for the fund.
Any unexpended appropriation balances lapse at the end of the fiscal year.
The City prepares the biennial budget on the modified accrual basis, which conforms to Generally Accepted Accounting Principles
(GAAP). The CAFR includes budgetary comparisons for those governmental funds with legally adopted budgets. Budget amounts
include the adopted current year budget appropriations and any revisions made during the year.
State law establishes the budget process and the time limits under which a budget must be developed. The City follows the
procedures outlined below to establish its biennial budget:
a. Sixty days prior to each odd numbered fiscal year, the Mayor submits to the City Council a preliminary budget for the
biennium commencing the following January 1st. The operating budget includes proposed expenditures and funding
sources.
b. Public hearings are conducted at the Auburn City Council Meetings to obtain taxpayer comments.
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c. Prior to December 31st, the budget is legally enacted through passage of an ordinance.
d. The final operating budget as adopted is published and distributed after adoption. Copies of the budget are made
available to the public.
E. Assets, Liabilities, and Fund Balance
1. Deposits and Investments
It is the City’s policy to invest all temporary cash surplus. At December 31, 2019, the Washington State Local Government
Investment Pool (LGIP) was holding $103,020,585 in short-term investments. This amount is classified on the Statement of
Net Position as cash and cash equivalents. The interest on these investments is prorated to the various funds based upon
ownership of investments. For purposes of the Statement of Cash Flows, cash and cash equivalents includes cash on deposit
with financial institutions in both demand and time deposit accounts, and amounts invested in the Local Government
Investment Pool, administered by the State Treasurer’s Office. The State Finance Committee is the administrator of the
statute that created the pool and adopts appropriate rules. The State Treasurer’s Office is responsible for establishing the
investment policy for the pool and reviews it annually. Any proposed changes are reviewed by the LGIP Advisory Committee.
The terms of the policy are designed to ensure the safety and liquidity of the funds deposited in the LGIP.
The City, by state law, is authorized to purchase certificates of deposit issued by Washington State depositories that
participate in Washington Public Deposit Protection Commission (WPDPC), U.S. Treasury and Agency securities, banker’s
acceptances, and repurchase agreements. The City purchases repurchase agreements only from institutions that use
authorized securities for collateral. The City of Auburn also has signed a “master repurchase agreement” with its primary
bank, Key Bank.
For purposes of the statement of cash flows, all proprietary fund types and similar trust funds consider all highly liquid
investments (including restricted assets) with maturity of three months or less when purchased to be cash equivalents.
Investments are recorded at fair value or amortized cost. Adjustments are made to cost for investments amortized over the
period to maturity in accordance with GASB Statement No. 31. The investment in the state investment pool is valued at
amortized cost.
Original Final
Budget Revisions Budget
Governmental Funds
General Fund 77,788,165$ 2,189,940$ 79,978,105$
Total Governmental Funds 77,788,165 2,189,940 79,978,105
Special Revenue Funds:
Local Street 2,605,900$ 899,476$ 3,505,376$
Arterial Street 1,781,400 3,645,054 5,426,454
Hotel/Motel Tax 160,050 41,650 201,700
Arterial Street Preservation 3,172,240 2,551,313 5,723,553
Drug Forfeiture Fund 298,037 27,000 325,037
Housing and Community Development 590,000 309,900 899,900
Recreation Trails - - -
Business Improvement Area 90,000 5,400 95,400
Cumulative Reserve 142,200 - 142,200
Mitigation Fees 2,980,350 1,481,056 4,461,406
Total Special Revenue Funds 11,820,177 8,960,849 20,781,026
Total Budgeted Funds 89,608,342$ 11,150,789$ 100,759,131$
ORIGINAL AND SUPPLEMENTAL APPROPRIATIONS
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2. Receivables
Taxes receivable consist of property taxes (see Note 4). Accrued interest receivable consists of amounts earned on notes
and contracts at the end of the year.
Customer accounts receivable consist of amounts owed by private individuals or organizations for goods and services
provided. Uncollectible amounts are considered immaterial and the direct write-off method is used.
Special assessments are levied against certain property owners and become liens against the property benefited by the
improvement. Special assessments receivable consist of current assessments, which are due within one year, delinquent
assessments remaining unpaid after the due date, and unearned, uncollected assessments, which have been levied, but are
not due within one year.
Other receivables include utility taxes due from private organizations and customer accounts receivable, which consist of
amounts owed from private individuals or organizations for goods and services, including amounts owed for which billings
have not been prepared. Notes and contracts receivable consist of amounts owed on open accounts from private individuals
or organizations for goods and services rendered.
3. Interfund Receivables and Payables
These accounts include all interfund receivables and payables. A separate schedule of interfund activity is furnished in
Note 5.
4. Amounts Due From Other Governmental Units
This account includes amounts due from other governments for grants, entitlements and charges for services. A schedule by
fund of amounts due from other governmental units is presented in Note 6.
5. Inventories and Prepaid Expenses
Government fund types recognize the cost of inventory items and prepaid expenses (expenses that benefit future periods)
as expenditures in the year of purchase. In governmental funds, materials and supplies remaining at year-end are immaterial
and not included in inventory. In enterprise and internal service funds, inventories are valued at cost using the weighted
average costing method.
6. Restricted Assets
In accordance with the utility bond ordinances, state law, or other agreements, separate restricted assets have been
established. These assets are restricted for specific purposes including the establishment of bond reserve funds, utility rate
stabilization funds, financing the ongoing capital improvement programs of the various utilities, customer deposits,
nonexpendable permanent cemetery endowment and other purposes.
7. Interfund Transactions
During the course of normal operations, the City has numerous transactions between City funds. Interfund services provided
and used, such as buying goods and services, are recorded as revenues in the internal service funds and expenditures in the
paying fund. Transfers between funds are included as “other financing sources or uses” in governmental fund types and as
other items in proprietary fund types.
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8. Capital Assets
Capital assets are recorded at historical cost when known or at estimated historical cost when actual costs are not known.
Infrastructure, such as roads, bridges and water mains, is reported in the applicable government or business-type activities
columns in the government-wide statement of net position. All infrastructure costs have been calculated and are reported.
Government donated capital assets are stated at their acquisition value on the date donated.
Major outlays for capital assets and improvements are capitalized as projects are constructed. The costs of normal
maintenance and repairs that do not add to the value of the asset or materially extend asset lives are not capitalized. For
proprietary funds, interest costs incurred to bring certain assets to the condition and location necessary for their intended
use are capitalized as part of the historical cost of acquiring the assets. Additionally, in situations involving the acquisition of
certain assets financed with the proceeds of tax-exempt borrowing, any interest earned on related interest-bearing
investment from such proceeds are offset against the related interest costs in determining either capitalization rates or
limitations on the amount of interest costs to be capitalized.
Capital assets of enterprise and internal service funds are recorded at cost. The capital assets of the airport are carried at cost
and include those acquired with capital contributed by the Federal Government.
Capital assets of all funds are depreciated, and are calculated on the straight-line method using estimated lives as follows:
Asset
Capitalization
Threshold Depreciation Method
Estimated Useful
Life
Building $5,000 Straight-line 20 - 50 years
Other Improvements $5,000 Straight-line 10 - 50 years
Equipment/Machinery $5,000 Straight-line 2 - 20 years
Infrastructure $5,000 Straight-line 25 - 50 years
Utility Plant $5,000 Straight-Line 25 - 50 years
At the inception of capital leases at the government fund reporting level, the net present value of future minimum lease
payments allocable to the capital asset is reflected as expenditures and an “other financing source” of an equal amount.
9. Pensions
For purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of resources related
to pensions, and pension expense, information about the fiduciary net position of all state sponsored pension plans and
additions to/deductions from those plans’ fiduciary net position have been determined on the same basis as they are reported
by the Washington State Department of Retirement Systems. For this purpose, benefit payments (including refunds of
employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are
reported at fair value.
10. Deferred Outflows/Inflows of Resources
Deferred outflow of resources is the consumption of net position by the government that is applicable to a future reporting
period. The deferred amount on special assessments consist of special assessments not due within one year is reported as
deferred outflows of resources in the governmental funds. Deferred inflow of resources is acquisition of net position by the
government that is applicable to a future reporting period. The difference between the carrying amount of redeemed and/or
defeased debt and its reacquisition price is the deferred amount on refunding and is amortized over the remaining life of the
debt, or the life of the new debt, whichever is shorter. Deferred outflows and deferred inflows of resources related to
pensions are reported for differences between expected and actual experience, changes of assumptions, and differences
between projected and actual returns on pension plan investments.
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11. Compensated Absences
City employees accrue vacation leave at a variable rate based on years of service. In general, employees are allowed to
accumulate vacation leave up to what would be earned in two years.
Unaffiliated employees accrue sick leave at the rate of eight hours per month up to 960 hours. Sick leave accumulations over
960 hours at year-end are paid at 25%. Sick leave is not paid upon termination except in some instances upon separation in
good standing, where employees hired before 12/31/1984 can be reimbursed at their current rate for unused sick leave up to
a maximum of 960 hours, at a rate based on years of service. The City’s union contracts have varied sick leave accruals and
payout options.
In general, non-exempt employees can accrue up to 80 hours of compensatory time. The City reports compensated absences
as liabilities in the government-wide statement of net position and in proprietary funds. Vacation, compensatory time, and
sick leave are calculated separately for each employee using the rules described above. The reporting format is in compliance
with GASB statement No. 16.
Governmental funds recognize expenditures for vacation, sick, and compensatory time when paid. Proprietary funds
recognize the expense and accrue a liability for vacation and sick leave pay as the leave is earned. All compensated absence
liabilities include salary-related payments, where applicable.
12. Unearned Revenues
This account reflects the amounts of taxes and other long-term receivables for which the revenue recognition criteria have
not been met. It also reflects prepayments on accounts and grants received in advance.
13. Net Position Components – Proprietary Funds
In proprietary funds, net position is generally restricted in connection with restricted assets or for legal segregation. These
restrictions are identified on the statement of net position of each fund type.
The City holds and administers a Utility System Rate Stabilization Fund. The City may, by ordinance, withdraw from the Rate
Stabilization Fund for inclusion in the net revenue of the Utility System at any time for any current fiscal year of the Utility
System, except that the total amount withdrawn from the Rate Stabilization Fund in any fiscal year may not exceed the total
debt service of the Utility System in that year.
14. Fund Balance Components – Governmental Funds
Fund balance is presented in the governmental fund financial statements and represents the difference between assets and
liabilities reported within the governmental fund.
Beginning with the most restrictive constraints, fund balance amounts are reported in the following categories:
a. Nonspendable fund balance includes items that cannot be spent. This includes activity that is not in a spendable
form (investments, prepaid amounts, long-term portion of loans/notes receivable, or property held for resale
unless the proceeds are restricted, committed or assigned) and activity that is legally or contractually required to
remain intact.
b. Restricted fund balance is externally (outside the City) enforceable limitations imposed by creditors, grantors,
contributors, laws and regulations of other governments, or laws through constitutional provisions or enabling
legislation.
c. Committed fund balance is self-imposed limitations imposed at the highest level of decision making authority,
namely, Mayor and City Council. Mayor and City Council approval by ordinance is required to commit, modify or
rescind resources.
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d. Assigned fund balance includes amounts that are constrained by the City’s intent to be used for a specific purpose,
but are neither restricted nor committed. It is the City’s policy that the Finance Director shall have the authority
to assign amounts of fund balance to a specific purpose; however, before expenditure, amounts must be
appropriated by the City Council which is often adopted by City Council in the biennial budget ordinance. For
governmental funds, other than the General Fund, this is the residual amount within the fund that is not restricted
or committed.
e. Unassigned fund balance is the residual amount of the General Fund not included in the four categories described
above. Also, any deficit fund balances within the other governmental fund types are reported as unassigned.
When expenditure is incurred for purposes for which both restricted and unrestricted resources are available, it is the City’s
policy to use restricted resources first. When expenditures are incurred for purposes, for which unrestricted (committed,
assigned, and unassigned) resources are available, and amounts in any of these unrestricted classifications could be used, it
is the City’s policy to spend committed resources first, then assigned and unassigned, in that order.
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The following shows the composition of the fund balance of the governmental funds for the fiscal year ended December 31, 2019:
F. Revenues, Expenditures and Expenses
Operating revenues and expenses for the proprietary fund are those that result from providing services and producing and
delivering goods and/or services in connection with a proprietary fund’s principal ongoing operations. For the city, operating
expenses for proprietary funds and internal service funds include the cost of sales and services, administrative expenses, and
depreciation of capital assets. All revenues and expenses not meeting this definition are reported as non-operating revenues and
expenses.
Contributions of capital in proprietary fund financial statements arise from internal and external contributions of capital assets or
from grants or outside contributions of resources restricted to capital acquisition and construction.
Transfers between government and business-type activities on the government-wide statement of activities are reported as
general revenues. Transfers between funds reported in the governmental activities column are eliminated, as are transfers
between funds reported in the business-type activities column.
Arterial Capital Other Total
General Street Improvement Governmental Governmental
Fund Fund Fund Funds Funds
Nonspendable
Inventory 36,097$ -$ -$ -$ 36,097$
Cemetery Endowment - - - 1,826,063 1,826,063
Total Nonspendable 36,097 - - 1,826,063 1,862,160
Restricted
Major Street Construction - 1,970,223 - - 1,970,223
REET 1 Allowable Projects - - 7,156,366 - 7,156,366
REET 2 Allowable Projects - - 5,296,691 - 5,296,691
Arterial Street Presevation Fund - - - 1,226,279 1,226,279
Parks and Trails Construction Projects - - - 665,416 665,416
City Tourism Promotion - - - 249,186 249,186
Drug Investigation and Enforcement - - - 1,252,739 1,252,739
Community Development Block Grant Program - - - 42,904 42,904
Recreational Trail Development - - - 72,876 72,876
Downtown Business Area Improvements - - - 130,916 130,916
Street and Fire Service Mitigation Fees - - - 14,019,837 14,019,837
Debt Service - - - 1,917 1,917
Total Restricted - 1,970,223 12,453,057 17,662,070 32,085,350
Committed
Local Street Improvements (Save our Streets)- - - 2,478,880 2,478,880
Arterial Street Preservation - - - 693,272 693,272
Total Committed - - - 3,172,152 3,172,152
Assigned
Appropriations Over Estimated Revenue 17,118,273 - - - 17,118,273
Arterial Street Preservation Fund - - 1,350,710 122,368 1,473,078
Drug Investigation and Enforcement - - - 25,234 25,234
Recreation Trail Development - - - 1,549 1,549
Downtown Business Area Improvements - - - 2,909 2,909
Local Street Improvements - - - 71,732 71,732
School Administration Fees - - - 84,251 84,251
Cemetery Capital Enhancement and Maintenance - - - 162,983 162,983
Downtown Infrastructure Improvements - - - 379,739 379,739
Debt Service - - - 38,082 38,082
Total Assigned 17,118,273 - 1,350,710 888,847 19,357,830
Unassigned
Unassigned 19,068,746 - - - 19,068,746
Total Unassigned 19,068,746 - - - 19,068,746
Total Fund Balances 36,223,116$ 1,970,223$ 13,803,767$ 23,549,132$ 75,546,238$
Governmental Fund Balances
December 31, 2019
Major
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G. Estimates
The preparation of the financial statements in conformity with accounting principles generally accepted in the United States
requires management to make estimates and assumptions that affect the amounts reported in the financial statements and
accompanying notes. Actual results may differ from those estimates.
NOTE 2 – STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY
There have been no material violations of finance-related legal or contractual provisions, and there have been no expenditures
exceeding legal appropriations in any of the funds of the City of Auburn.
NOTE 3 – DEPOSITS AND INVESTMENTS
At December 31, 2019, the carrying amount of the City’s cash demand deposits with Key Bank totaled $11,841,707 while the bank
balance was $12,855,998. In addition, the balance of the City’s interest bearing checking account with Opus Bank totaled
$10,461,275. Furthermore, there was $18,800 in petty cash ($10,000 in the Drug Forfeiture Fund to be used for enforcements
purposes, $8,800 in various petty cash and cashier change funds).
Custodial Credit Risk. Custodial credit risk is the risk associated with the failure of a depository financial institution. In the event
of a depository financial institution’s failure, it is the risk that the City would not be able to recover its deposits or collateralized
securities that are in the possession of the outside parties.
The City minimizes custodial credit risk by following the restrictions set forth in state law.
The Federal Deposit Insurance Corporation (FDIC) insures the City’s deposits up to $250,000. The Washington Public Deposit
Protection Commission (WPDPC) (established under Chapter 39.58 of the Revised Code of Washington) constitutes a multiple
financial institution collateral pool. Pledged securities under the WPDPC collateral pool are held by the WPDPC’s agent in the
name of the collateral pool.
As required by State law, all investments of the City’s funds are obligations of the U.S. Government, or deposits with Washington
State banks that participate in the WPDPC. Pension and permanent funds are not subject to these limitations. All temporary
investments such as the State Investment Pool are stated at amortized cost. Other investments are shown on the statement of
net position at fair value as of December 31, 2019. In accordance with GASB Statement 79, the state investment pool (LGIP) is
reported at amortized cost. The LGIP meets the maturity, quality, diversification and liquidity requirements as set forth in GASB
Statement 79. The LGIP is an unrated external investment pool, and was authorized by Chapter 294, Laws of 1986, and is managed
and operated by the Washington State Treasurer. The LGIP does not have any legally binding guarantees of share values. The
LGIP does not impose liquidity fees or redemption gates on participant withdrawals.
The Office of the State Treasurer prepares a stand-alone LGIP financial report. A copy of the report is available from the Office of
the State Treasurer, PO Box 40200, Olympia, Washington 98504-0200, online at http://www.tre.wa.gov.
During 2019, the net increase in the fair value of investments being held for more than one year is $475,502 at year-end.
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As of December 31, 2019, the City had the following investments and maturities:
The city measures and reports investments at fair value using the valuation input hierarchy established by generally accepted
accounting principles, as follows:
*Level 1 – Quoted prices in active markets for identical assets or liabilities;
*Level 2 – These are quoted market prices for similar assets or liabilities, quoted prices for identical or similar assets or
liabilities in markets that are not active, or other quoted prices that are not observable;
*Level 3 – Unobservable inputs for an asset or liability.
Fair Less than 1 to 2 2 to 3 Greater than
Investment Type Value 1 year years years 3 years
US Agency 28,499,705$ 19,325,391$ $7,172,114 -$ 2,002,200$
Municipal Bond 1,756,843 1,756,843 - - -
30,256,548$ 21,082,234$ 7,172,114$ -$ 2,002,200$
Reconciliation to government-
wide statement of net position:
Total investments above 30,256,548$
Plus: cash in checking 22,302,980
Plus: petty cash 18,800
Less: cash investments in fiduciary funds (1,329,046)
Total cash and investments at fair value 51,249,282$
Amortized
Investment Type Cost
State investment pool (LGIP)103,020,585$ 103,020,585$ -$ -$ -$
103,020,585$ 103,020,585$ -$ -$ -$
Total cash and investments, government-
wide statement of net position 154,269,867$
Schedule of Investments by Maturities
As of December 31, 2019
Investment maturities
Governmental Business-Type
Activities Activities Total
Cash and Cash Equivalents 47,225,749$ 42,832,547$ 90,058,296$
Cash with Outside Agencies - - -
Investments 19,288,650 10,967,898 30,256,548
Temporarily Restricted:
Cash and Cash Equivalents 25,530,340 6,598,620 32,128,960
Permanently Restricted:
Cash and Cash Equivalents 1,826,063 - 1,826,063
93,870,802$ 60,399,065$ 154,269,867$
Reconciliation of Cash and Investments
Government-Wide Statement of Net Position
As of December 31, 2019
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At December 31, 2019, the city had the following investments measured at fair value:
Interest Rate Risk
Interest rate risk is the risk that changes in interest rates of debt investments will adversely affect the fair value of an investment.
As a means of limiting its exposure to fair value losses arising from rising interest rates, the City’s investment policy limits the
maximum maturity of an investment to not greater than five years, unless an investment is matched to an anticipated future cash
flow. The segmented time distribution presented in the schedule of investments by maturity above indicates how the City has
managed its interest rate risk.
Credit Risk
Credit risk is the risk that an issuer or other counterparty to an investment will not fulfill its obligations. State law and the City’s
investment policy limits the instruments in which the City may invest. These include:
1. US Treasury obligations
2. US Government Agency obligations and US Government Sponsored Enterprises (GSE’s) which may include, but are not
limited to Federal Farm Credit Bank (FFCB), Federal Home Loan Bank (FHLB), Government National Mortgage Association
(GNMA), Federal Home Loan Mortgage Corporation (FHLMC), Federal National Mortgage Association (FNMA), Student
Loan Marketing Corporation (SLMA), and/or Tennessee Valley Authority (TVA)
3. Non-negotiable Certificates of Deposit of financial institutions which are qualified public depositories as defined by RCW
39.58.010(2) and in accordance with the restrictions therein
4. Bonds of the State of Washington and any local government in the State of Washington, General Obligation bonds
outside the State of Washington; at the time of investment, the bonds must have a rating of AA- from S&P or Aa3 from
Moody’s, or higher. In the case of a split rating, the lower rating of these two rating agencies will be used.
5. Washington Local Government Investment Pool (LGIP) managed by the Washington State Treasurer’s Office
6. Other investments authorized by law
7. Time deposits and savings account deposits with Washington State Public Deposit Protection Commission (PDPC)
approved banks.
The City’s municipal bond holding at time of purchase carried a AAA rating from S&P and a Aaa rating from Moody’s.
Concentration of Credit Risk
Concentration of credit risk is the risk of loss attributed to the magnitude of an investment in a single issuer. The City diversifies
its investments by security type and institution. City investment policy restricts security holdings to 25 - 40% of the City’s total
investment portfolio in a single security type. This restriction excludes US Treasury obligations, US Agency Securities and the
Washington State Local Government Investment Pool which may comprise 100% of the total investment portfolio.
Quoted Prices in
Active Markets for
Identical Assets
Significant
Other
Observable
Inputs
Significant
Unobservable
Inputs
Investments by Fair Value Level 12/31/2019 (Level 1)(Level 2)(Level 3)
US Agency 28,499,705$ 28,499,705$ -$ -$
Municipal Bond 1,756,843 1,756,843 - -
Total Investments by Fair Value Level 30,256,548$ 30,256,548$ -$ -$
Investments and Derivative Instruments Measured at Fair Value
As of December 31, 2019
Fair Value Measurements Using
City of Auburn: 2019 CAFR Notes to the Financial Statements
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Other information
Effective 2002, the City has established arrangements with Bank of New York for safekeeping of all investments.
The following is a schedule of investments by fund type:
NOTE 4 – PROPERTY TAXES
Property taxes received during tax year 2019 were $22,057,841 including collection of prior year delinquent assessments. Property
taxes assessed for collection in tax year 2019 were based on a regular tax levy of $2.03 per $1,000 on a total 2018 assessed value
of $11,393,504,898.
For levy year 2019, to be received in 2020, the City’s regular tax levy is $1.92 per $1,000 on a 2019 assessed valuation of
$12,316,932,930 as of December 31, 2019, for a total regular levy of $22,368,188. State law provides that debt cannot be incurred
in excess of the following percentages of the taxable property of the City.
1.50% of assessed value without a vote of the people
2.50% of assessed value with a vote of the people
The City has additional authority to incur the following debt as a percentage of total valuation.
2.50% of assessed value with a vote of the people, indebtedness is for utilities
2.50% of assessed value with a vote of the people, indebtedness is for parks, or open space development
At December 31, 2019, the debt limits for the City were as follows:
State
Investment U.S.Municipal
Pool Agency Bond Total
General Fund -$ 17,774,830$ -$ 17,774,830$
Permanent Fund 1,513,820 - 1,513,820
Enterprise Funds - 9,211,055 1,756,843 10,967,898
Treasurer's Residual Funds 103,020,585 - - 103,020,585
Total 103,020,585$ 28,499,705$ 1,756,843$ 133,277,133$
Schedule of Investments by Fund Category and Investment Type
As of December 31, 2019
For Parks or
Without General For Open Space
a Vote Purposes Utilities Development Total
Item 1.50%1.00%2.50%2.50%Capacity
Legal Limit 184,753,994$ 123,169,329$ 307,923,323$ 307,923,323$ 923,769,969$
Outstanding indebtedness (46,115,178) - - - (46,115,178)
Margin available 138,638,816$ 123,169,329$ 307,923,323$ 307,923,323$ 877,654,791$
With a Vote
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The County Treasurer acts as an agent to collect property taxes levied in the county for all taxing authorities. Taxes are levied
annually on January 1 on property values listed as of the prior August 31. The County assesses property at 100% of fair market value.
A revaluation of all property is required every year and a physical inspection is required at least once every six years.
Property taxes levied by the County Assessor and collected by the County Treasurer become a lien on the first day of the levy year
and may be paid in two installments if the total amount exceeds $50. The first half of real property taxes is due on April 30 and
the balance is due October 31. Delinquent taxes bear interest at the rate of 12% and are subject to additional penalties if not paid
as scheduled. No allowance for uncollectable taxes is established because delinquent taxes are considered fully collectable.
At year-end, property taxes are recorded as a receivable. During the year, property tax revenues are recognized when cash is
received.
1. The Washington State Constitution limits the total regular property taxes to 1% of assessed valuation or $10 per $1,000 of
value. If the taxes of all districts exceed this amount, each is proportionately reduced until the total is at or below the 1% limit.
2. Washington State law in RCW 84.55.010 limits the annual growth of regular property taxes to the lesser of 1% or the rate of
inflation. With a vote of the majority of the voters within a taxing district, the 1% levy limitation can be “lifted” and additional
taxes may be levied
3. The City may voluntarily levy taxes below the legal limit.
Special levies approved by the voters are not subject to the above limitations.
Property taxes are recorded as receivable and offset by an unearned revenue account when levied. Since state law allows for the
sale of property for failure to pay taxes, no estimate of uncollectible taxes is made.
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NOTE 5 – INTERFUND ACTIVITY
Transfers are legally authorized transfers of resources from a fund receiving revenue to the fund through which resources are to
be expended. The principal purposes for interfund transfers include interfund subsidies and transfers into capital project and
debt service funds. Interfund transfers for the year ended December 31, 2019 were as follows:
Funds Transfer In Transfer Out
Governmental funds:
General 120,456$ 493,450$
Cumulative Reserve - -
Total general fund 120,456 493,450
Other Governmental funds
Special revenue funds:
Arterial Streets 717,223 143,196
Local Streets 1,900,000 -
Hotel / Motel tax - 9,600
Arterial Street Preservation 632,659 -
Housing And Community Development 38,000 -
Mitigation Fees 398,528 1,218,135
Total special revenue funds 3,686,410 1,370,931
Debt service funds:
2010 A&B Annex 1,315,900 -
2010 C&D Local Revitalization 231,800 -
LID 250 373,945 -
Total debt service funds 1,921,645 -
Capital projects funds:
Municipal Park Construction 545,840 -
Capital Improvements 203,413 3,781,887
Total capital projects funds 749,253 3,781,887
Total all governmental funds 6,477,764 5,646,268
Proprietary funds:
Water 39,258 147,002
Sewer - 64,119
Storm Drainage - 138,357
Solid waste - 10,797
Non-major Enterprise funds
Airport 350,000 423,270
Total proprietary funds 389,258 783,545
Internal service funds:
Facilities 40,000 732,926
Innovation & Technology 124,233 29,950
Equipment Rental 161,434 -
Total internal service funds 325,667 762,876
Total 7,192,688$ 7,192,688$
All transfers are considered routine.
Transfers
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Loans between funds are classified as interfund receivable and payable. Interfund Loans do not affect total fund equity.
Balance Balance
Due From Due To 1/1/2019 New Loans Repayments 12/31/2019
Housing & Comm. Dev.General fund -$ 100,000$ -$ 100,000$
Airport Fund Capital Improvement 53,210$ -$ 41,583$ 11,627$
Total interfund loans 53,210$ 100,000$ 41,583$ 111,627$
All interfund loans are considered short-term cash loans.
*The purpose of the interfund loan to Housing & Community Development was to cover authorized expenditures while the City waited for
reimbursement of federal Community Development Block Grant monies.
*The purpose of the interfund loan to The Airport Fund is to cover the cost of The Auburn Municipal T Hanger Enclosure Project.
Interfund Loans
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NOTE 6 – DUE FROM OTHER GOVERNMENTAL UNITS
As of December 31, 2019 the City had receivables due from other governmental units as follows:
General Fund:
King County District Court 455,027
King County Library Systems 9,573
King County -Real Estate Excise Taxes 526,727
King County Sheriff's - Registered Sex Offender Grant 4,109
King County VSHS Levy grant 7,770
Pierce County - Real Estate Excise Taxes 14,026
Muckleshoot Indian Tribe 362,375
Department of Commerce -VNET 2,811
Seattle Police Dept -US Department of Justice JAG Grant 30,568
US Department of Justice -Bulletproof Vest Program 3,044
US Department of Justice -COPS Hiring Program 57,862
US Department of Justice -SCAAP Grant 2,811
WA Association of Sheriffs & Police Chiefs 1,500
WA Auto Theft Prevention Authority - Auto Theft Prevention Grant 84,361
WA State Criminal Justice Training 27,167
WA State Military Department -EMPG Grant 12,766
WA State Traffic Safety Commission - Grants 5,049
WA State Treasurer - Sales Taxes 1,503,327
Total General Fund 3,110,872
Arterial Street Fund:
KCWTD 14,469
WA Dept. of Transportation - Arterial Street Improvements 55,291
Total Arterial Street Fund 69,760
Arterial Street Preservation Fund:
WA Dept. of Transportation - Arterial Street Preservation 392,694
Total Arterial Street Preservation Fund 392,694
Drug Forfeiture Fund:
Pierce County Sheriff's Department -TNET 13,326
Total Drug Forfeiture Fund 13,326
Housing & Community Development:
U.S. Dept. of Housing - Community Development Block Grant 105,488
Total Housing & Community Development Fund 105,488
Municipal Park Construction Fund:
WA State Historical Society 261,905
Total Municipal Park Construction Fund 261,905
General Government Capital Improvements:
Pierce County - Real Estate Excise Taxes 20,474
WA State Transportation Improvement Board - Grant 180,689
Total General Government Capital Improvements Fund 201,163
Solid Waste Fund:
King County - Local hazardous waste management grant 22,186
King County - Waste reduction and recycling grant 23,706
WA State Department of Ecology -14,782
Total Solid Waste fund 60,674
Airport Capital Fund
Federal Aviation Administration -Grant 46,809
Total Airport Capital fund 46,809
Facilities Fund:
City of Federal Way 20,417
Total Airport Capital fund 20,417
Information Services Fund:
VRFA 2,289
Total Information Services fund 2,289
Total 4,285,397
Reconciliation to government-wide statement of net position:
Total above due from other governmental units 4,285,397
Amount due from fiduciary fund
Total due from other governmental units,
4,285,397
Due from Other Governmental Units
government-wide statement of net assets
City of Auburn: 2019 CAFR Notes to the Financial Statements
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NOTE 7 – CAPITAL ASSETS AND DEPRECIATION
Capital asset activity for the year ended December 31, 2019 is as follows:
Balance Decreases/Balance
1/1/19 Increases Adjustments 12/31/19
Governmental activities:
Capital assets, not being depreciated:
Land 108,890,255$ 2,950$ -$ 108,893,205$
Construction in progress 8,984,615 6,498,761 (8,969,777) 6,513,599
Total capital assets, not being depreciated 117,874,870 6,501,711 (8,969,777) 115,406,804
Capital assets, being depreciated:
Buildings 73,817,057 24,000 - 73,841,057
Improvements other than buildings 23,828,764 2,813,479 (47,106) 26,595,137
Machinery and equipment 30,487,220 1,717,300 (491,423) 31,713,097
Intangibles 1,095,683 - - 1,095,683
Infrastructure 403,004,026 12,480,029 - 415,484,055
Total capital assets being depreciated 532,232,750 17,034,808 (538,529) 548,729,029
Less: accumulated depreciation for:
Buildings (21,553,124) (1,555,368) - (23,108,492)
Improvements other than buildings (16,230,213) (707,954) - (16,938,167)
Machinery and equipment (21,578,181) (1,609,997) 390,099 (22,798,079)
Intangibles (1,212,278) (146,603) - (1,358,881)
Infrastructure (184,508,462) (14,200,745) - (198,709,207)
Total accumulated depreciation (245,082,258) (18,220,667) 390,099 (262,912,826)
Total capital assets, being depreciated, net 287,150,492 (1,185,859) (148,430) 285,816,203
Governmental activities capital assets, net 405,025,362$ 5,315,852$ (9,118,207)$ 401,223,007$
Business-type activities:
Capital assets, not being depreciated:
Land 12,533,022$ 10,300$ -$ 12,543,322$
Water Rights 5,701,772 252,586 - 5,954,358
Construction in progress 2,425,272 6,422,231 (3,769,455) 5,078,048
Total capital assets, not being depreciated 20,660,066 6,685,117 (3,769,455) 23,575,728
Capital assets, being depreciated:
Buildings 6,085,434 - - 6,085,434
Improvements other than buildings 338,649,767 7,024,734 - 345,674,501
Machinery and equipment 2,562,222 29,376 - 2,591,598
Total capital assets being depreciated 347,297,423 7,054,110 - 354,351,533
Less: accumulated depreciation for:
Buildings (4,172,307) (122,402) - (4,294,709)
Improvements other than buildings (123,819,677) (8,527,766) - (132,347,443)
Machinery and equipment (2,279,811) (42,906) - (2,322,717)
Total accumulated depreciation (130,271,795) (8,693,074) - (138,964,869)
Total capital assets, being depreciated, net 217,025,628 (1,638,964) - 215,386,664
Business-type activities capital assets, net 237,685,694$ 5,046,153$ (3,769,455)$ 238,962,392$
Schedule of Capital Asset Activity
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Capital asset activity for the year ended December 31, 2019 is as follows:
Depreciation/amortization expense was charged to functions/programs of the City as follows:
The 2019 total interest cost incurred for business-type activities was $1,183,329 all of which was charged to expense.
NOTE 8 – CAPITAL LEASE OBLIGATION
The City has the following capital leases:
On January 1, 2007 the City entered into a capital lease agreement for the Auburn Avenue Theater facility for a 15 year term. The
intent is for the City’s Parks, Arts and Recreation department to offer performances to the public, as well as make the facility
available for short-term rentals.
On July 15, 2015 the City entered into a 5 year term capital lease agreement to finance the purchase of a John Deere Excavator.
The lease agreement qualifies as a capital lease for accounting purposes.
The assets acquired through capital leases are as follows:
Assets Acquired Through Capital Leases
Governmental
Asset Activities
Auburn Avenue Theater $ 749,110
John Deere Excavator 205,334
Less: Accumulated Depreciation (829,898)
Total Assets Acquired Through Capital Leases $ 124,546
Governmental activities:
General government 1,067,498$
Public safety 636,926
Transportation 13,567,527
Physical environment -
Culture and recreation 1,392,522
Economic environment -
Capital assets held by the City's internal service funds are charge `
functions based on their usage of the assets 1,556,194
Total depreciation/amortization expense - governmental activities 18,220,667$
Business-type activities:
Water 3,848,016$
Sanitary sewer 2,275,905
Storm water 2,092,443
Solid waste 18,819
Golf course -
Airport 424,882
Cemetery 33,009
Total depreciation expense - business-type activities 8,693,074$
City of Auburn: 2019 CAFR Notes to the Financial Statements
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The future minimum lease obligation and the net present value of these minimum lease payments as of December 31, 2019, were
as follows:
Schedule of Future Minimum Lease Payments
Lease Payable
Theater Excavator Total
2020 79,339 25,867 105,206
2021 80,333 - 80,333
Total minimum lease payments 159,672 25,867 185,539
Less: Amounts representing interest (11,590) (257) (11,846)
Present value of future minimum lease payments $ 148,082 $ 25,610 $ 173,693
NOTE 9 – LONG-TERM LIABILITIES
General Obligation Bonds are direct obligations of the City for which its full faith and credit are pledged. Debt service for voter-
approved issues, of which the City has none, would be funded by special property tax levies. Debt service for City Council
authorized bonds, also called councilmanic bonds, is funded from regular property taxes or general revenues, and is generally
paid from debt service funds but can be paid from other designated funds.
General Obligation Bonds outstanding at year-end are as follows:
• 2010B Limited Tax General Obligation Bonds (Taxable Build America Bonds – Direct Payment) bonds were issued to provide
funds with which to pay a portion of the costs of acquisition of certain condominium units to provide city office space near
City Hall (City Hall Annex) in lieu of the City Hall Annex lease.
• 2010D Limited Tax General Obligation Bonds (Taxable Build America Bonds – Direct Payment) bonds were issued to provide
funds with which to pay portion of the downtown infrastructure improvements in the City’s revitalization area.
• 2016 Limited Tax General Obligation Refunding Bonds were issued for the primary purposes of (a) refunding on a current
basis the 2005 Limited Tax General Obligation Refunding Bonds and (b) refunding on an advance basis the 2006A Limited Tax
General Obligation Bonds.
The net proceeds were used to purchase United States government securities. Those securities were deposited into an
irrevocable trust with an escrow agent to (a) pay the full outstanding principal and interest on the 2005 Bonds on the
redemption date and to (b) provide for all future debt service payments on the 2006A bonds which were refunded. As a
result of these transactions, the 2005 and 2006A bonds are considered to be defeased and the liability for those bonds has
been removed from the City’s financial statements. The remaining balance of outstanding defeased debt as of December 31,
2019 is $2,111,185.
Revenue Bonds are payable from water, sewer and storm drainage utility revenues generated by those enterprise funds.
State of Washington Public Works Trust Fund and Drinking Water State Revolving Fund Loans are a direct responsibility of the
City. Auburn currently has eight outstanding loans with a remaining total balance of $8,264,306. Six of the loans are for water
and sewer construction projects. The loans are being repaid from water and sewer fund revenues over a 20-year period that begins
upon each project completion (PWTF 2001, PWTF 2002, PWTF 2004, PWTF 2006, PWTF 2013, & DWSRF 2016). The other two loans
are for arterial street improvements and are being repaid from arterial street fund revenues over a 20-year period that began in
2009 upon project completion (PWTF 2008) and over a 29-year period that began in 2013 upon project completion (PWTF 2012).
Compensated Absences are paid by those funds that have employees. These are mostly payable by the General fund and
enterprise funds.
City of Auburn: 2019 CAFR Notes to the Financial Statements
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The following schedules summarize the long-term debt transactions of the City for the year ended December 31, 2019. The first
table summarizes all debt transactions for Auburn, while the second provides detailed information on all long-term debt.
Additional schedules reflect total annual debt service requirements to maturity and the reconciliation of debt by fund type.
General
Obligation (1)Utility
Employee
Leave Benefit
Other Post
Employment
Benefits
Net Pension
Liability
Firemen's
Pension
Liability Premium
Due To Other
Governments Total
Long-term liabilities payable 12/31/18 29,963,602$ 31,341,029$ 3,154,040$ 16,228,865$ 12,574,717$ 2,973,304$ 1,087,315$ 22,202,200$ 119,525,072$
Added - 39,258 2,372,796 1,520,398 - 700,283 - 17,838,617 22,471,352
Retired (1,661,431) (2,553,275) (2,467,219) (4,046,904) (3,199,036) (221,139) (84,185) (22,202,200) (36,435,389)
Long-term liabilities payable 12/31/19 28,302,171$ 28,827,012$ 3,059,617$ 13,702,359$ 9,375,681$ 3,452,448$ 1,003,130$ 17,838,617$ 105,561,035$
(1) Includes capital leases
CHANGES IN LONG-TERM LIABILITES SUMMARY
Year Principal Interest Principal Interest Principal Interest Principal (1)Interest
2020 1,843,271 2,130,374 96,480 8,727 2,628,284 1,274,027 4,568,034 3,413,127
2021 1,879,698 2,076,256 77,213 3,120 2,688,283 1,208,109 4,645,194 3,287,486
2022 1,946,659 1,995,120 - - 2,521,198 1,119,203 4,467,857 3,114,323
2023 2,008,039 1,910,898 - - 2,565,083 1,023,135 4,573,122 2,934,032
2024 2,080,575 1,823,865 - - 2,635,083 923,780 4,715,658 2,747,645
2025-2029 10,097,272 7,614,454 - - 13,131,839 2,938,401 23,229,111 10,552,854
2030-2034 12,037,446 4,644,334 - - 5,135,583 311,063 17,173,029 4,955,398
2035-2039 10,776,842 1,523,876 - - 584,966 7,312 11,361,808 1,531,188
2040-2044 - - - - 233,986 877 233,986 877
Totals 42,669,802$ 23,719,176$ 173,693$ 11,846$ 32,124,306$ 8,805,907$ 74,967,800$ 32,536,930$
(1)74,967,800$ Principal debt service requirements to maturity
3,059,617 Employee Leave Benefits
13,702,359 Other Post Employment Benefits
9,375,681 Net Pension Liability
3,452,448 Firemen's Pension Liability
1,003,130 Premium
105,561,035$ Long Term Liabilities 12/31/2019
Obligation Bonds Obligation Bonds/Loans Long-Term Debt
DEBT SERVICE REQUIREMENT TO MATURITY
General Capital Lease Utility Total
City of Auburn: 2019 CAFR Notes to the Financial Statements
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Interest Maturity Original Principal Balance Balance Due Within
Issue Name Rates Date Amount(2) Installments 12/31/18 Additions Reductions 12/31/19 One Year
GOVERNMENTAL DEBT
General Obligation Bonds:
LTGO 2010B (1)3.27-6.24%12/1/2039 20,365,000 $535,000 - $1,240,000 18,150,000 - (590,000) 17,560,000 610,000
LTGO 2010D (1)3.27-6.19%12/1/2034 6,320,000 $220,000 - $445,000 5,405,000 - (245,000) 5,160,000 255,000
LTGO Refunding 2016 - Golf/Cemetery 1.64 -1.64%12/1/2025 3,166,930 $71,470 - $366,159 2,445,051 - (333,866) 2,111,185 340,616
Total General Obligation Bonds 29,851,930 26,000,051 - (1,168,866) 24,831,185 1,205,616
Capital Leases:
Auburn Avenue Theater 6.58%12/31/2021 695,504 $4,114 - $6,612 213,977 - (65,895) 148,082 70,869
John Deere Financial Excavator Lease 3.00%7/15/2020 205,334 $3,695 68,484 - (42,874) 25,610 25,610
Total Capital Leases 900,838 282,461 - (108,769) 173,692 96,479
Employee Leave Benefits:
Compensated absences 2,578,327 1,983,895 (2,004,091) 2,558,131 2,021,002
Other Post Employment Benefits:
LEOFF 1 16,228,865 1,520,398 (4,046,904) 13,702,359 -
Pensions:
Net Pension Liability 8,541,631 - (2,319,968) 6,221,663 -
Firemen's Pension Liability 2,973,304 700,283 (221,139) 3,452,448 -
Public Works Trust Fund Loans:
PWTF 2008 0.50%7/1/2028 1,527,273 $80,383 803,828 - (80,383) 723,445 80,383
PWTF 2012 0.50%6/1/2041 3,284,857 $116,993 2,690,842 - (116,993) 2,573,849 116,993
Total Public Works Trust Fund Loans 4,812,130 3,494,670 - (197,376) 3,297,294 197,376
Premium Related to Debt 39,202 - (5,600) 33,602 -
Total Governmental 35,564,898$ 60,138,511$ 4,204,576$ (10,072,713)$ 54,270,374$ 3,520,473$
BUSINESS-TYPE DEBT
General Obligation Bonds
LTGO Refunding 2016 - Airport 1.64 -1.64%12/1/2019 700,284 $166,439 - $186,420 186,420 - (186,420) - -
Total General Obligation Bonds 700,284 186,420 - (186,420) - -
Revenue Bonds:
Utility sys bonds 2010 (1)3.00-6.40%12/1/2030 21,295,000 $575,000 - $1,720,000 16,795,000 - (1,120,000) 15,675,000 1,170,000
Utility sys bonds 2013 (1)0.38-4.00%12/1/2032 11,415,000 $335,000 - $785,000 8,680,000 - (495,000) 8,185,000 505,000
Total Revenue Bonds 32,710,000 25,475,000 - (1,615,000) 23,860,000 1,675,000
Employee Leave Benefits:
Compensated absences 575,713 388,901 (463,128) 501,486 396,189
Net Pension Liability 4,033,086 - (879,068) 3,154,018 -
Public Works Trust Fund & Drinking Water Loans:
PWTF 1999 1.00%7/1/2019 3,465,000 $182,368 182,368 - (182,368) -
PWTF 2001 0.50%7/1/2021 4,290,405 $227,086 681,257 - (227,086) 454,171 227,086
PWTF 2002 1.00%7/1/2022 641,250 $26,114 104,458 - (26,114) 78,344 26,114
PWTF 2004 0.50%7/1/2024 2,049,036 $107,844 647,064 - (107,844) 539,220 107,844
PWTF 2006 0.50%7/1/2026 3,325,000 $180,418 1,443,345 - (180,418) 1,262,927 180,418
PWTF 2013 2.00%6/1/2032 3,325,000 $188,538 2,639,538 - (188,538) 2,451,000 188,538
DWSRF 2016 1.50%10/1/2024 1,353,400 $28,000 167,999 39,258 (25,907) 181,350 25,907
Total Public Works Trust Fund & Drinking Water Loans 18,449,091 5,866,029 39,258 (938,275) 4,967,012 755,908
Premium Related to Debt 1,048,113 - (78,585) 969,528 -
Total Proprietary 51,859,375$ 37,184,361$ 428,159$ (4,160,476)$ 33,452,044$ 2,827,097$
Total All Funds 87,424,273$ 97,322,872$ 4,632,735$ (14,233,189)$ 87,722,418$ 6,347,571$
(1) Subject to federal arbitrage compliance rules.
(2) The original amount is the amount authorized and issued with exception of the Utility System Bonds 2013 in which the authorized amount was $13,000,000 and the issued amount
was $11,415,000.
CHANGES IN LONG-TERM LIABILITIES
City of Auburn: 2019 CAFR Notes to the Financial Statements
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Due to Other Governments
• SCORE Public Development Authority issued General Obligation bonds in 2009 to acquire, construct, improve, and equip a
consolidated correctional facility located in Des Moines, Washington. These bonds were subsequently refunded in December 2019
and will mature in 2038. The city is contracted to pay 34.94% of the debt service. This debt is paid from the General fund.
Revenue Bond Debt Service Coverage
The required debt service coverage for the 2013 utility revenue bonds and 2010 utility revenue bonds is 1.25. Debt service
coverage for 2019 was 3.75. The ratio indicates the direction and degree to which the revenue stream exists to meet the current
debt burden. The ratio is calculated by dividing the net revenue available by debt service requirements.
The restricted rate stabilization fund for the utility revenue bonds was established to minimize the effect on rates of revenue
fluctuations between years. By transferring cash into this stabilization fund, adjusted net revenue available for debt service, as
defined, would be decreased by the amount of the transfer. Conversely, transfers out of the account would increase adjusted net
revenue available for debt service.
Estimated Arbitrage Rebate
The Federal Tax Reform Act of 1986 requires issuers of tax-exempt debt of over $5 million to make payments to the United States
Treasury of investment interest received at yields that exceed the issuer’s tax-exempt borrowing rates. Payments of arbitrage
rebate amounts due under these regulations must be made to the U.S. Treasury every five years. The City’s estimated arbitrage
rebate as of December 31, 2019 is $0 for its tax-exempt bond issues.
Interest Maturity Original Principal Balance Balance Due Within
Issue Name Rates Date Amount Installments 12/31/18 Additions Reductions 12/31/19 One Year
GOVERNMENTAL DEBT:
General Obligation Bonds:
SCORE Public Development Authority 3.00-6.62%1/1/2039 26,732,850 $593,650 - $1,601,150 22,202,200 - (22,202,200) - -
SCORE Refunding Bonds 2019 3.00-5.00%12/1/2038 17,838,617 $637,655 - $1,325,973 - 17,838,617 - 17,838,617 637,655
Total General Obligation Bonds
Due Other Governments 44,571,467$ 22,202,200$ 17,838,617$ (22,202,200)$ 17,838,617$ 637,655$
CHANGES IN LONG-TERM LIABILITIES DUE TO OTHER GOVERNMENTS
Enterprise Governmental
Funds Funds 12/31/19
Liabilities payable from restricted assets:
Revenue bonds 2,918,062$ -$ 2,918,062$
Long-term bonds payable:
General obligation bonds - 24,831,185 24,831,185
Capital lease - 173,692 173,692
Revenue bonds 20,941,938 - 20,941,938
Public Works Trust Fund loans 4,967,012 3,297,294 8,264,306
Due to Other Governments - 17,838,617 17,838,617
Employee leave benefits 501,486 2,558,131 3,059,617
Other Post Employment Benefits - 13,702,359 13,702,359
Net Pension Liability 3,154,018 6,221,663 9,375,681
Firemen's Pension Liability - 3,452,448 3,452,448
Premium 969,528 33,602 1,003,130
Total long-term debt 33,452,044$ 72,108,991$ 105,561,035$
LONG-TERM LIABILITIES RECONCILIATION
City of Auburn: 2019 CAFR Notes to the Financial Statements
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Note 10 – Pension Plans
The following table represents the aggregate pension amounts for all plans subject to the requirements of GASB Statement 68,
Accounting and Financial Reporting for Pensions for the year 2019
Aggregate Pension Amounts - All Plans
Pension liabilities $ (9,375,681)
Pension assets $ 11,081,510
Deferred outflows of resources $ 3,590,477
Deferred inflows of resources $ (9,123,330)
Pension expense/expenditures $ 621,918
*Pension Assets GASB 68 equals total Net Position Statement
State Sponsored Pension Plans
Substantially all City full-time and qualifying part-time employees participate in one of the following statewide retirement systems
administered by the Washington State Department of Retirement Systems, under cost-sharing, multiple-employer public
employee defined benefit and defined contribution retirement plans. The state Legislature establishes, and amends, laws
pertaining to the creation and administration of all public retirement systems.
The Department of Retirement Systems (DRS), a department within the primary government of the State of Washington, issues
a publicly available comprehensive annual financial report (CAFR) that includes financial statements and required supplementary
information for each plan. The DRS CAFR may be obtained by writing to:
Department of Retirement Systems
Communications Unit
P.O. Box 48380
Olympia, WA 98540-8380
Or the DRS CAFR may be downloaded from the DRS website at www.drs.wa.gov.
Public Employees’ Retirement System (PERS)
PERS members include elected officials; state employees; employees of the Supreme, Appeals and Superior Courts; employees of
the legislature; employees of district and municipal courts; employees of local governments; and higher education employees not
participating in higher education retirement programs. PERS is comprised of three separate pension plans for membership
purposes. PERS plans 1 and 2 are defined benefit plans, and PERS plan 3 is a defined benefit plan with a defined contribution
component.
PERS Plan 1 provides retirement, disability and death benefits. Retirement benefits are determined as two percent of the
member’s average final compensation (AFC) times the member’s years of service. The AFC is the average of the member’s 24
highest consecutive service months. Members are eligible for retirement from active status at any age with at least 30 years of
service, at age 55 with at least 25 years of service, or at age 60 with at least five years of service. Members retiring from active
status prior to the age of 65 may receive actuarially reduced benefits. Retirement benefits are actuarially reduced to reflect the
choice of a survivor benefit. Other benefits include duty and non-duty disability payments, an optional cost-of-living adjustment
(COLA), and a one-time duty-related death benefit, if found eligible by the Department of Labor and Industries. PERS 1 members
were vested after the completion of five years of eligible service. The plan was closed to new entrants on September 30, 1977.
City of Auburn: 2019 CAFR Notes to the Financial Statements
81
Contributions
The PERS Plan 1 member contribution rate is established by State statute at 6 percent. The employer contribution rate is
developed by the Office of the State Actuary and includes an administrative expense component that is currently set at 0.18
percent. Each biennium, the state Pension Funding Council adopts Plan 1 employer contribution rates. The PERS Plan 1 required
contribution rates (expressed as a percentage of covered payroll) for 2019 were as follows:
PERS Plan 1
Actual Contribution Rates: Employer Employee*
January – June 2019:
PERS Plan 1 7.52% 6.00%
PERS Plan 1 UAAL 5.13%
Administrative Fee 0.18%
Total 12.83% 6.00%
July – December 2019:
PERS Plan 1 7.92% 6.00%
PERS Plan 1 UAAL 4.76%
Administrative Fee 0.18%
Total 12.86% 6.00%
* For employees participating in JBM, the contribution rate was 12.26%.
PERS Plan 2/3 provides retirement, disability and death benefits. Retirement benefits are determined as two percent of the
member’s average final compensation (AFC) times the member’s years of service for Plan 2 and 1 percent of AFC for Plan 3. The
AFC is the average of the member’s 60 highest-paid consecutive service months. There is no cap on years of service credit.
Members are eligible for retirement with a full benefit at 65 with at least five years of service credit. Retirement before age 65 is
considered an early retirement. PERS Plan 2/3 members who have at least 20 years of service credit and are 55 years of age or
older, are eligible for early retirement with a benefit that is reduced by a factor that varies according to age for each year before
age 65. PERS Plan 2/3 members who have 30 or more years of service credit and are at least 55 years old can retire under one of
two provisions:
• With a benefit that is reduced by three percent for each year before age 65; or
• With a benefit that has a smaller (or no) reduction (depending on age) that imposes stricter return-to-work rules.
PERS Plan 2/3 members hired on or after May 1, 2013 have the option to retire early by accepting a reduction of five percent for
each year of retirement before age 65. This option is available only to those who are age 55 or older and have at least 30 years of
service credit. PERS Plan 2/3 retirement benefits are also actuarially reduced to reflect the choice of a survivor benefit. Other
PERS Plan 2/3 benefits include duty and non-duty disability payments, a cost-of-living allowance (based on the CPI), capped at
three percent annually and a one-time duty related death benefit, if found eligible by the Department of Labor and Industries.
PERS 2 members are vested after completing five years of eligible service. Plan 3 members are vested in the defined benefit
portion of their plan after ten years of service; or after five years of service if 12 months of that service are earned after age 44.
PERS Plan 3 defined contribution benefits are totally dependent on employee contributions and investment earnings on those
contributions. PERS Plan 3 members choose their contribution rate upon joining membership and have a chance to change rates
upon changing employers. As established by statute, Plan 3 required defined contribution rates are set at a minimum of 5 percent
and escalate to 15 percent with a choice of six options. Employers do not contribute to the defined contribution benefits. PERS
Plan 3 members are immediately vested in the defined contribution portion of their plan.
City of Auburn: 2019 CAFR Notes to the Financial Statements
82
Contributions
The PERS Plan 2/3 employer and employee contribution rates are developed by the Office of the State Actuary to fully fund Plan
2 and the defined benefit portion of Plan 3. The Plan 2/3 employer rates include a component to address the PERS Plan 1 UAAL
and an administrative expense that is currently set at 0.18 percent. Each biennium, the state Pension Funding Council adopts Plan
2 employer and employee contribution rates and Plan 3 contribution rates. The PERS Plan 2/3 required contribution rates
(expressed as a percentage of covered payroll) for 2019 were as follows:
PERS Plan 2/3
Actual Contribution Rates: Employer 2/3 Employee 2*
January – June 2019:
PERS Plan 2/3 7.52% 7.41%
PERS Plan 1 UAAL 5.13%
Administrative Fee 0.18%
Employee PERS Plan 3 Varies
Total 12.83% 7.41%
July – December 2019:
PERS Plan 2/3 7.92% 7.90%
PERS Plan 1 UAAL 4.76%
Administrative Fee 0.18%
Employee PERS Plan 3 Varies
Total 12.86% 7.90%
* For employees participating in JBM, the contribution rate was 18.53% to 19.75%.
The City’s actual PERS plan contributions were $1,310,731 to PERS Plan 1 and $2,047,116 to PERS Plan 2/3 for the year ended
December 31, 2019.
Law Enforcement Officers’ and Fire Fighters’ Retirement System (LEOFF)
LEOFF membership includes all full-time, fully compensated, local law enforcement commissioned officers, firefighters, and as of
July 24, 2005, emergency medical technicians. LEOFF is comprised of two separate defined benefit plans.
LEOFF Plan 1 provides retirement, disability and death benefits. Retirement benefits are determined per year of service calculated
as a percent of final average salary (FAS) as follows:
• 20+ years of service – 2.0% of FAS
• 10-19 years of service – 1.5% of FAS
• 5-9 years of service – 1% of FAS
The FAS is the basic monthly salary received at the time of retirement, provided a member has held the same position or rank for
12 months preceding the date of retirement. Otherwise, it is the average of the highest consecutive 24 months’ salary within the
last ten years of service. Members are eligible for retirement with five years of service at the age of 50. Other benefits include
duty and non-duty disability payments, a cost-of living adjustment (COLA), and a one-time duty-related death benefit, if found
eligible by the Department of Labor and Industries. LEOFF 1 members were vested after the completion of five years of eligible
service. The plan was closed to new entrants on September 30, 1977.
City of Auburn: 2019 CAFR Notes to the Financial Statements
83
Contributions
Starting on July 1, 2000, LEOFF Plan 1 employers and employees contribute zero percent, as long as the plan remains fully funded.
The LEOFF Plan I had no required employer or employee contributions for fiscal year 2019. Employers paid only the administrative
expense of 0.18 percent of covered payroll.
LEOFF Plan 2 provides retirement, disability and death benefits. Retirement benefits are determined as two percent of the final
average salary (FAS) per year of service (the FAS is based on the highest consecutive 60 months). Members are eligible for
retirement with a full benefit at 53 with at least five years of service credit. Members who retire prior to the age of 53 receive
reduced benefits. If the member has at least 20 years of service and is age 50, the reduction is three percent for each year prior
to age 53. Otherwise, the benefits are actuarially reduced for each year prior to age 53. LEOFF 2 retirement benefits are also
actuarially reduced to reflect the choice of a survivor benefit. Other benefits include duty and non-duty disability payments, a
cost-of-living allowance (based on the CPI), capped at three percent annually and a one-time duty-related death benefit, if found
eligible by the Department of Labor and Industries. LEOFF 2 members are vested after the completion of five years of eligible
service.
Contributions
The LEOFF Plan 2 employer and employee contribution rates are developed by the Office of the State Actuary to fully fund Plan
2. The employer rate included an administrative expense component set at 0.18 percent. Plan 2 employers and employees are
required to pay at the level adopted by the LEOFF Plan 2 Retirement Board.
Effective July 1, 2017, when a LEOFF employer charges a fee or recovers costs for services rendered by a LEOFF 2 member to a
non-LEOFF employer, the LEOFF employer must cover both the employer and state contributions on the LEOFF 2 basic salary
earned for those services. The state contribution rate (expressed as a percentage of covered payroll) was 3.44% as of July 1, 2019.
The LEOFF Plan 2 required contribution rates (expressed as a percentage of covered payroll) for 2019 were as follows:
LEOFF Plan 2
Actual Contribution Rates: Employer Employee
January – June 2019
State and local governments 5.25% 8.75%
Administrative Fee 0.18%
Total 5.43% 8.75%
Ports and Universities 8.75% 8.75%
Administrative Fee 0.18%
Total 8.93% 8.75%
July – December 2019
State and local governments 5.15% 8.59%
Administrative Fee 0.18%
Total 5.33% 8.59%
Ports and Universities 8.59%
Administrative Fee 0.18%
Total 8.77% 8.59%
The City’s actual contributions to the plan were $738,844 for the year ended December 31, 2019.
The Legislature, by means of a special funding arrangement, appropriates money from the state General Fund to supplement the
current service liability and fund the prior service costs of Plan 2 in accordance with the recommendations of the Pension Funding
Council and the LEOFF Plan 2 Retirement Board. This special funding situation is not mandated by the state constitution and could
be changed by statute. For the state fiscal year ending June 30, 2019, the state contributed $72,959,897 to LEOFF Plan 2. The
amount recognized by the City as its proportionate share of this amount is $476,580.
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Actuarial Assumptions
The total pension liability (TPL) for each of the DRS plans was determined using the most recent actuarial valuation completed in
2019 with a valuation date of June 30, 2018. The actuarial assumptions used in the valuation were based on the results of the
Office of the State Actuary’s (OSA) 2007-2012 Experience Study and the 2017 Economic Experience Study.
Additional assumptions for subsequent events and law changes are current as of the 2018 actuarial valuation report. The TPL was
calculated as of the valuation date and rolled forward to the measurement date of June 30, 2019. Plan liabilities were rolled
forward from June 30, 2018, to June 30, 2019, reflecting each plan’s normal cost (using the entry-age cost method), assumed
interest and actual benefit payments.
• Inflation: 2.75% total economic inflation; 3.50% salary inflation
• Salary increases: In addition to the base 3.50% salary inflation assumption, salaries are also expected to grow by
promotions and longevity.
• Investment rate of return: 7.4%
Mortality rates were based on the RP-2000 report’s Combined Healthy Table and Combined Disabled Table, published by the
Society of Actuaries. The OSA applied offsets to the base table and recognized future improvements in mortality by projecting
the mortality rates using 100 percent Scale BB. Mortality rates are applied on a generational basis; meaning, each member is
assumed to receive additional mortality improvements in each future year throughout his or her lifetime.
There were changes in methods and assumptions since the last valuation.
• OSA updated modeling to reflect providing benefit payments to the date of the initial retirement eligibility for terminated
vested members who delay application for retirement benefits.
• OSA updated COLA programming to reflect legislation signed during the 2018 legislative session that provides PERS and
TRS Plan 1 annuitants who are not receiving a basic minimum, alternate minimum, or temporary disability benefit with a
one-time permanent 1.5% increase to their monthly retirement benefit, not to exceed a maximum of $62.50 per month.
Discount Rate
The discount rate used to measure the total pension liability for all DRS plans was 7.4 percent.
To determine that rate, an asset sufficiency test included an assumed 7.5 percent long-term discount rate to determine funding
liabilities for calculating future contribution rate requirements. (All plans use 7.5 percent except LEOFF 2, which has assumed 7.4
percent). Consistent with the long-term expected rate of return, a 7.4 percent future investment rate of return on invested assets
was assumed for the test. Contributions from plan members and employers are assumed to continue being made at contractually
required rates (including PERS 2/3, PSERS 2, SERS 2/3, and TRS 2/3 employers, whose rates include a component for the PERS 1,
and TRS 1 plan liabilities). Based on these assumptions, the pension plans’ fiduciary net position was projected to be available to
make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return of 7.4
percent was used to determine the total liability.
Long-Term Expected Rate of Return
The long-term expected rate of return on the DRS pension plan investments of 7.4 percent was determined using a building-block-
method. In selecting this assumption, the Office of the State Actuary (OSA) reviewed the historical experience data, considered
the historical conditions that produced past annual investment returns, and considered capital market assumptions and simulated
expected investment returns provided by the Washington State Investment Board (WSIB). The WSIB uses the capital market
assumptions and their target asset allocation to simulate future investment returns over various time horizons.
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Estimated Rates of Return by Asset Class
Best estimates of arithmetic real rates of return for each major asset class included in the pension plan’s target asset allocation
as of June 30, 2019, are summarized in the table below. The inflation component used to create the table is 2.2 percent and
represents the WSIB’s most recent long-term estimate of broad economic inflation.
Asset Class
Target Allocation
% Long-Term Expected Real
Rate of Return Arithmetic
Fixed Income 20% 2.20%
Tangible Assets 7% 5.10%
Real Estate 18% 5.80%
Global Equity 32% 6.30%
Private Equity 23% 9.30%
100%
Sensitivity of Net Pension Liability/(Asset)
The table below presents the City’s proportionate share of the net pension liability calculated using the discount rate of 7.4
percent, as well as what the City’s proportionate share of the net pension liability would be if it were calculated using a discount
rate that is 1-percentage point lower (6.4 percent) or 1-percentage point higher (8.4 percent) than the current rate.
1% Decrease
(6.40%)
Current Discount Rate
(7.40%)
1% Increase
(8.40%)
PERS 1 $ 8,861,106 $ 7,075,761 $ 5,526,739
PERS 2/3 17,639,469 2,299,919 (10,287,194)
LEOFF 1 (1,584,617) (1,937,059) (2,241,359)
LEOFF 2 $ (1,700,339) $ (9,144,451) $ (15,220,549)
Pension Plan Fiduciary Net Position
Detailed information about the State’s pension plans’ fiduciary net position is available in the separately issued DRS financial
report.
Pension Liabilities (Assets), Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related
to Pensions
At June 30, 2019, the City reported a total pension asset of $1,705,830 for its proportionate share of the net pension liabilities as
follows:
Liability (Asset)
PERS 1 $ 7,075,761
PERS 2/3 2,299,919
LEOFF 1 (1,937,059)
LEOFF 2 $ (9,144,451)
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The amount of the asset reported above for LEOFF Plans 1 and 2 reflects a reduction for State pension support provided to the
City. The amount recognized by the City as its proportionate share of the net pension asset, the related State support, and the
total portion of the net pension asset that was associated with the City were as follows:
LEOFF 1 Asset LEOFF 2 Asset
Employer’s proportionate share
$ (1,937,059)
$ (9,144,451)
State’s proportionate share of
the net pension asset associated
with the employer
(13,102,219)
(5,988,390)
TOTAL $ (15,039,278) $(15,132,840)
At June 30, the City’s proportionate share of the collective net pension liabilities was as follows:
Proportionate
Share 6/30/18
Proportionate Share
6/30/19
Change in
Proportion
PERS 1 0.190096% 0.184008% (0.006088)%
PERS 2/3 0.239249% 0.236778% (0.002471)%
LEOFF 1 0.101761% 0.097999% (0.003762)%
LEOFF 2 0.403472% 0.394720% (0.008752 %
Employer contribution transmittals received and processed by the DRS for the fiscal year ended June 30 are used as the basis for
determining each employer’s proportionate share of the collective pension amounts reported by the DRS in the Schedules of
Employer and Nonemployer Allocations for all plans except LEOFF 1.
LEOFF Plan 1 allocation percentages are based on the total historical employer contributions to LEOFF 1 from 1971 through 2000
and the retirement benefit payments in fiscal year 2019. Historical data was obtained from a 2011 study by the Office of the State
Actuary (OSA). In fiscal year 2019, the state of Washington contributed 87.12 percent of LEOFF 1 employer contributions and all
other employers contributed the remaining 12.88 percent of employer contributions. LEOFF 1 is fully funded and no further
employer contributions have been required since June 2000. If the plan becomes underfunded, funding of the remaining liability
will require new legislation. The allocation method the plan chose reflects the projected long-term contribution effort based on
historical data.
In fiscal year 2019, the state of Washington contributed 39.57 percent of LEOFF 2 employer contributions pursuant to RCW
41.26.725 and all other employers contributed the remaining 60.43 percent of employer contributions.
The collective net pension liability (asset) was measured as of June 30, 2019, and the actuarial valuation date on which the total
pension liability (asset) is based was as of June 30, 2018, with update procedures used to roll forward the total pension liability to
the measurement date.
Pension Expense
For the year ended December 31, 2019, the City recognized pension expense as follows:
Pension Expense
PERS 1 $ 42,981
PERS 2/3 484,897
LEOFF 1 (38,759)
LEOFF 2 132,798
TOTAL $ 621,918
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Deferred Outflows of Resources and Deferred Inflows of Resources
At December 31, 2019, the City reported deferred outflows of resources and deferred inflows of resources related to pensions
from the following sources:
PERS 1 Deferred Outflows of
Resources
Deferred Inflows of
Resources
Differences between expected and actual experience $ $
Net difference between projected and actual investment
earnings on pension plan investments
(472,720)
Changes of assumptions
Changes in proportion and differences between
contributions and proportionate share of contributions
Contributions subsequent to the measurement date 635,770
TOTAL $ 635,770 $ (472,720)
PERS 2/3 Deferred Outflows of
Resources
Deferred Inflows of
Resources
Differences between expected and actual experience $ 658,932 $ (494,470)
Net difference between projected and actual investment
earnings on pension plan investments
(3,347,746)
Changes of assumptions 58,894 ( 964,970)
Changes in proportion and differences between
contributions and proportionate share of contributions
19,932
( 196,606)
Contributions subsequent to the measurement date 1,057,834
TOTAL $ 1,795,592 $ (5,003,791)
LEOFF 1 Deferred Outflows of
Resources
Deferred Inflows of
Resources
Differences between expected and actual experience $ $
Net difference between projected and actual investment
earnings on pension plan investments
(200,815)
Changes of assumptions
Changes in proportion and differences between contributions
and proportionate share of contributions
Contributions subsequent to the measurement date
TOTAL $ $ (200,815)
LEOFF 2 Deferred Outflows of
Resources
Deferred Inflows of
Resources
Differences between expected and actual experience $ 658,025 $ (164,441)
Net difference between projected and actual investment
earnings on pension plan investments
(1,874,898)
Changes of assumptions 15,065 (1,029,044)
Changes in proportion and differences between
contributions and proportionate share of contributions
114,408
(377,621)
Contributions subsequent to the measurement date 371,617
TOTAL $ 1,159,115 $ (3,446,004)
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Deferred outflows of resources related to pensions resulting from the City’s contributions subsequent to the measurement date
will be recognized as a reduction of the net pension liability in the year ended December 31, 2020. Other amounts reported as
deferred outflows and deferred inflows of resources related to pensions will be recognized in pension expense as follows:
Year ended PERS 1 PERS 2/3 LEOFF 1 LEOFF 2
December 31
2020 $ (104,356) $ (1,056,549) $ (46,644) $ (537,470)
2021 (247,188) (1,750,005) (102,807) (982,416)
2022 (88,211) (793,817) (37,306) (458,439)
2023 (32,965) (439,637) (14,058) (259,605)
2024 - (223,997) - (109,376)
Thereafter $ - $ (2,028) $ - $ (311,200)
City of Auburn Fire Relief and Pension Plan
The City is the administrator of the Firemen’s Pension Plan (Plan), which is a closed, single-employer defined benefit pension plan
that was established in conformance with RCW Chapters 41.16 and 41.18. This plan provides retirement and disability benefits,
annual cost-of-living adjustments, and death benefits to plan members and beneficiaries. Membership is limited to firefighters
employed prior to March 1, 1970 when the LEOFF retirement system was established. The City’s obligation under the Firemen’s
Pension Plan consists of paying all benefits, including payments to beneficiaries and healthcare, for firefighters who retired prior
to March 1, 1970, and excess pension and healthcare benefits of LEOFF for covered firefighters who retired after March 1, 1970.
Benefits and refunds of the defined benefit pension plan are recognized when due and payable in accordance with the Plan. The
Plan does not issue a separate financial report. Membership of the Firemen’s Pension Plan consisted of 13 eligible inactive
employees or their beneficiaries, of which 11 received city paid benefits. There are no active employees in this plan.
Under state law, the Firemen’s Pension Plan is provided an allocation of 25% of all monies received by the state from taxes on fire
insurance premiums (which is not considered a special funding situation), interest earnings, member contributions made prior to
the inception of LEOFF, and City contributions required to meet projected future pension obligations. In 2019, $80,386 was
received from the state from taxes on fire insurance premiums, and $48,664 was received from interest earnings. On-behalf
payments of fringe benefits and salaries for the City’s employees were recognized as revenues and expenditures/expenses during
the period. Administrative costs, such as City staff time and actuarial valuation costs are funded from interest earnings or City
contributions.
The City has determined that GASB Statement No. 67 – Financial Reporting for Pension Plans; an amendment of GASB Statement No.
25 does not apply to the City’s single-employer Fire Relief and Pension Fund as there are no assets accumulated in a qualifying
trust and it does not meet the criteria applicability set by the statement as the contributions to that fund are not irrevocable. Plan
assets may be used to cover medical expenses which are outside of the scope of the pension plan benefits. Therefore, the Fire
Relief and Pension Fund has been presented in conformance with GASB Statement No. 73 – Accounting and Financial Reporting for
Pensions and Related Assets That Are Not within the Scope of GASB Statement 68, and Amendments to Certain Provisions of GASB
Statements 67 and 68.
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The following table represents the plan aggregate pension amounts for 2019:
Aggregate Pension Amounts – Fire Relief and Pension Plan
Pension liabilities $ (3,452,448)
Deferred outflows of resources $ 0
Deferred inflows of resources $ 0
Pension expense/expenditures $ (619,897)
Service Retirement Benefit
The amount of a members benefit is based upon the rank of the firefighter at the time of retirement and amounts to 50% of salary
plus an additional 2% for each year of service in excess of 25 years, to a maximum benefit of 60% of salary. An annual post-
retirement increase is determined based upon 2 factors:
• escalation by salary in proportion to the current salary of rank from which the firefighter retired (RCW 41.18.040), and
• increase proportionate to the annual increase in the Seattle-area CPI and regardless of the increase (or decrease) in the
CPI, the benefits are increased at least 2% each year. (RCW 41.18.104)
Assumptions and Other Inputs to the Total Pension Liability
GASB Statement 73 requires a schedule of changes in Total Pension Liability from year to year. Both the December 31, 2018 and
the December 31, 2019 amounts are based on the below specified actuarial valuation (the valuation date) and then projected
forward to the measurement date. The measurement date is the date as of which the total pension liability is determined.
The discount rate and other key actuarial assumptions utilized are noted below:
Fire Relief and Pension Plan December 31, 2018 December 31,2019
Discount Rate – municipal bond rate (average rating
AA/Aa or higher)
4.00%
2.75%
Valuation Date January 1, 2017 January 1, 2019
Measurement Date December 31, 2018 December 31, 2019
Inflation 2.25% 2.25%
Salary Increases Including Inflation 3.25% 3.25%
Mortality RP-2000 Mortality
Table (combined
healthy) with
generational
projection using 100%
of Projection Scale
BB
RP-2000 Mortality
Table (combined
healthy) with
generational
projection using
100% of Projection
Scale BB
Actuarial Cost Method Entry Age Normal Entry Age Normal
City of Auburn: 2019 CAFR Notes to the Financial Statements
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Total Pension Liability
The following table represents the changes in the total pension liability for 2019:
Fire Relief and Pension Plan Increase (Decrease)
Total Pension Liability
Balances as of December 31, 2018 $ 2,973,304
Changes for the year:
Service cost 0
Interest on total pension liability 114,553
Effect of plan changes 0
Effect of economic/demographic gains or losses 208,957
Effect of assumptions, changes or inputs 376,773
Benefit payments * (221,139)
Balances as of December 31, 2019 $ 3,452,448
* Benefit payments are estimated based on expected payouts.
Sensitivity Analysis
The following table presents the total pension liability of the City, calculated using the discount rate of 2.75%, as well as what the
City’s total pension liability would be if it were calculated using a discount rate that is 1 percentage point lower (1.75%) or 1
percentage point higher (3.75%) than the current rate.
1% Decrease
(1.75%)
Current Discount Rate
(2.75%)
1% Increase
(3.75%)
$ 3,811,624 $ 3,452,448 $ 3,145,409
Pension Expense
The amount of pension expense recognized by the City for the reporting period is as follows:
Fire Relief and Pension Plan January 1, 2018 to
December 31, 2018
January 1, 2019 to
December 31, 2019
Service Cost $ 0 $ 0
Interest on Total Pension Liability 108,873 114,553
Effect of Plan Changes 0 0
Contributions From State Fire Insurance Premium Tax (79,798) (80,386)
Recognition of Deferred Inflows/Outflows of Resources:
Recognition of Economic/Demographic Gains/Losses 0 208,957
Recognition of Assumption Changes or Inputs (142,719) 376,773
Pension Expense $ (113,644) $ 619,897
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Deferred Outflows/Inflows of Resources
As of December 31, 2019, the deferred outflows and inflows of resources are as follows:
Fire Relief and Pension Plan Deferred Outflows
of Resources
Deferred Inflows of
Resources
Differences between expected and actual experience $ 0 $ 0
Changes of assumptions 0 0
Contributions subsequent to the measurement date 0 0
TOTAL $ 0 $ 0
Amounts currently reported as deferred outflows of resources and deferred inflows of resources related to pensions will be
recognized in pension expense as follows:
Year ended December 31:
2020 $0
2021 0
2022 0
2023 0
2024 0
Thereafter 0
NOTE 11 – OTHER POST-EMPLOYMENT BENEFITS
The following table represents the aggregate OPEB amounts for all plans subject to the requirements of GASB Statement 75 for
the year 2019:
Aggregate OPEB Amounts
OPEB Liabilities $ 13,702,359
OPEB Assets $ 0
Deferred outflows of resources $ 0
Deferred inflows of resources $ 0
OPEB expense/expenditures $ (1,907,252)
Plan Description
The city is the administrator of the Law Enforcement Officer and Fire Fighter(LEOFF) 1 employees plan providing lifetime medical
care. The plan is a single employer, defined benefit, other post-employment benefit plan (OPEB). The plan does not issue a
separate standalone financial report.
Benefits Provided
Effective March 1, 1970, the LEOFF plan was established by the Legislature under Revised Code of Washington (RCW) Chapter
41.26. LEOFF members who joined the system by September 30, 1977 are Plan 1 members. In addition, the City is required to pay
post-employment benefits in accordance with RCW Chapter 41.16; all medical and long term care as long as a disability exists are
covered for any active firefighter hired prior to March 1, 1970. For any retired firefighter hired prior to March 1, 1970, medical and
long term care are covered at the discretion of the Retirement Board. Members retired prior to 1961 for reasons other than duty
disability are not eligible for medical benefits during retirement.
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The City OPEB plan provides medical, prescription drug, dental, Medicare Part B premiums, long-term care, and vision expenses
for retirees. The plan does not cover dependent spouses and children. The City’s cost is reduced by any amounts retirees receive
from Medicare or other health plans.
Funding Policy
The plan is funded on a pay-as-you-go basis from the General Fund and there are no assets accumulated in a qualifying trust.
Membership
As of December 31, 2019, there are 45 retirees and 0 active employees meeting the eligibility requirements of a LEOFF 1 member.
This is considered a closed group with no new members.
Retirees currently receiving benefits 45
Retirees entitled to but not yet receiving benefits 0
Active employees 0
Total 45
OPEB Liability
The Valuation Date is January 1, 2019. This is the date as of which the actuarial valuation was performed. The Measurement Date
is December 31, 2019. This is the date as of which the total OPEB liability under GASB 75 is determined. The Reporting Date is the
Plan’s and City’s fiscal year ending date. Update procedures were used to roll forward the total OPEB liability to the measurement
date.
Assumptions and Other Inputs
A number of assumptions are used in development of the OPEB plan actuarial valuation as discussed below.
GASB 75 requires the discount rate used to measure the Total OPEB Liability (the Actuarial Accrued Liability calculated using the
Individual Entry Age Normal Cost Method) to be a yield or index rate for 20-year, tax exempt general obligation municipal bonds
with an average rating of AA/Aa or higher. The Bond Buyer General Obligation 20-bond municipal bond index for bonds that
mature in 20 years is 2.74% as of December 27, 2019. Rounding this to the nearest ¼% results in a discount rate of 2.75% as of the
December 31, 2019 measurement date.
A medical (healthcare) and dental trend rate of 7.7% for pre-65 retirees and 7.0% for post 65 retirees is assumed along with a long-
term care inflation rate of 4.5%.
Mortality assumptions are based on the RP-2000 Mortality Table (combined healthy) with generational projection using 100% of
Projection Scale BB. For active and service retired members, ages are set back one year for males and set forward one year for
females. For disabled members, ages are set forward two years.
Sensitivity Analysis
The following presents the total OPEB liability of the City calculated using the current healthcare cost trend rates as well as what
the City’s total OPEB liability would be if it were calculated using trend rates that are one percentage point lower or one
percentage point higher than the current trend rates.
1% Decrease
Current Trend Rate
1% Increase
Total December 31, 2019
OPEB Liability
$ 12,181,628
$ 13,702,359
$ 15,487,400
City of Auburn: 2019 CAFR Notes to the Financial Statements
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The following presents the total OPEB liability of the City calculated using the discount rate of 2.75%, as well as what the City’s
total OPEB liability would be if it were calculated using a discount rate that is one percentage point lower (1.75%) or one
percentage point higher (3.75%) than the current rate.
1% Decrease
Current Discount Rate
1% Increase
Total December 31, 2019
OPEB Liability
$ 15,600,722
$ 13,702,359
$ 12,131,199
The following table represents the changes in total OPEB liability for 2019:
OPEB LEOFF Plan 1 Increase (Decrease)
Total OPEB Liability
Balance as of December 31, 2018 $ 16,228,865
Changes for the Year:
Service Cost 0
Interest on Total OPEB Liability 636,891
Effect of Plan Changes 0
Effect of Economic/Demographic Gains or Losses (3,427,650)
Effect of Assumptions, Changes or Inputs 883,507
Expected Benefit Payments (619,254)
Balance as of December 31, 2019 $ 13,702,359
For the year ended December 31, 2019, the City recognized an OPEB expense of $ -1,907,252.
Changes in assumptions that affected measurement of the total OPEB liability since the prior measurement date include changes
in premiums and claims, mortality, and trends.
The City reported no deferred outflows of resources and no deferred inflows of resources related to OPEB.
NOTE 12 – ASSOCIATION OF WASHINGTON CITIES EMPLOYEE BENEFIT TRUST (“Trust”)
Trust Description
The City of Auburn is a member of the Association of Washington Cities Employee Benefit Trust Health Care Program (AWC
Trust HCP). Chapter 48.62 RCW provides that two or more local government entities may, by Interlocal agreement under
Chapter 39.34 RCW, form together or join a pool or organization for the joint purchasing of insurance, and/or joint self-
insurance, to the same extent that they may individually purchase insurance or self-insure.
An agreement to form a pooling arrangement was made pursuant to the provisions of Chapter 39.34 RCW, the Interlocal
Cooperation Act. The AWC Trust HCP was formed on January 1, 2014 when participating cities, towns, and non-city entities of the
AWC Employee Benefit Trust in the State of Washington joined together by signing an Interlocal Governmental Agreement to
jointly self-insure certain health benefit plans and programs for participating employees, their covered dependents and other
beneficiaries through a designated account within the Trust.
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As of December 31, 2019, 261 cities/towns/non-city entities participate in the AWC Trust HCP.
The AWC Trust HCP allows members to establish a program of joint insurance and provides health and welfare services to all
participating members. The AWC Trust HCP pools claims without regard to individual member experience. The pool is actuarially
rated each year with the assumption of projected claims run-out for all current members. The AWC Trust HCP includes medical,
dental and vision insurance through the following carriers: Kaiser Foundation Health Plan of Washington, Kaiser Foundation
Health Plan of Washington Options, Inc., Regence BlueShield, Asuris Northwest Health, Delta Dental of Washington, and Vision
Service Plan. Eligible members are cities and towns within the state of Washington. Non-City Entities (public agency, public
corporation, intergovernmental agency, or political subdivision within the state of Washington) are eligible to apply for
coverage into the AWC Trust HCP, submitting application to the Board of Trustees for review as required in the Trust
Agreement.
Participating employers pay monthly premiums to the AWC Trust HCP. The AWC Trust HCP is responsible for payment of all
covered claims. In 2019, the AWC Trust HCP purchased stop loss insurance for Regence/Asuris plans at an Individual Stop Loss
(ISL) of $1.5 million through Commencement Bay Risk Management, and Kaiser ISL at $1 million with Companion Life through
ASG Risk Management. The aggregate policy is for 200% of expected medical claims.
Participating employers contract to remain in the AWC Trust HCP for a minimum of three years. Participating employers with
over 250 employees must provide written notice of termination of all coverage a minimum of 12 months in advance of the
termination date, and participating employers with under 250 employees must provide written notice of termination of all
coverage a minimum of 6 months in advance of termination date. When all coverage is being terminated, termination will only
occur on December 31. Participating employers terminating a group or line of coverage must notify the AWC Trust HCP a
minimum of 60 days prior to termination. A participating employer’s termination will not obligate that member to past debts, or
further contributions to the AWC Trust HCP. Similarly, the terminating member forfeits all rights and interest to the AWC Trust
HCP Account.
The operations of the Health Care Program are managed by the Board of Trustees or its delegates. The Board of Trustees is
comprised of four regionally elected officials from Trust member cities or towns, the Employee Benefit Advisory Committee
Chair and Vice Chair, and two appointed individuals from the AWC Board of Directors, who are from Trust member cities or
towns. The Trustees or its appointed delegates review and analyze Health Care Program related matters and make operational
decisions regarding premium contributions, reserves, plan options and benefits in compliance with Chapter 48.62 RCW. The
Board of Trustees has decision authority consistent with the Trust Agreement, Health Care Program policies, Chapter 48.62 RCW
and Chapter 200-110-WAC.
The accounting records of the AWC Trust HCP are maintained in accordance with methods prescribed by the State Auditor’s
office under the authority of Chapter 43.09 RCW. The AWC Trust HCP also follows applicable accounting standards established
by the Governmental Accounting Standards Board (“GASB”). In 2018, the retiree medical plan subsidy was eliminated, and is
noted as such in the report for the fiscal year ending December 31, 2018. Year-end financial reporting is done on an accrual basis
and submitted to the Office of the State Auditor as required by Chapter 200-110 WAC. The audit report for the AWC Trust HCP is
available from the Washington State Auditor’s office.
City of Auburn: 2019 CAFR Notes to the Financial Statements
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NOTE 13 – CONSTRUCTION COMMITMENTS
At December 31, 2019, the City had the following contractual obligations on construction projects:
NOTE 14 – CEMETERY ENDOWED CARE FUND
The City maintains one permanent fund known as the cemetery endowed care fund. Paid into this fund is 10% of the base,
pre-tax sales price of each grave, niche or crypt. This fund is irreducible in principal and no part of the income of this fund
shall ever be used for purposes other than those specified upon the creation of the fund.
RCW 68.44.020 restricts the use of endowment net appreciation to endowment care “stipulated in the instrument by which
the fund was established”. For the City, the instrument that established the fund is Auburn City Code section 3.04.080, and
section 3.040.120 governs the use of the fund.
ACC 3.04.120 restricts net interest or income from investments to the care of the lots and in the improvement or
embellishment of the cemetery or the erection or preservation of any buildings or structures, fences or walks, or for the
repair, preservation, erection or renewal of any tomb, monument, grave, stone, fence, railing or other erection in or around
the cemetery. The funds may also be used for planting and cultivating trees, shrubs, flowers or plants in or around the
cemetery. All expenditures of income from the fund must first be authorized by the City Council.
For 2019, of the $41,607 net appreciation on investments, all was available for expenditures. Amounts that are available for
expenditure are reflected as assigned fund balance.
NOTE 15 – JOINT VENTURES / RELATED PARTY
Valley Communications Center
The “Valley Communications Center” was established August 20, 1976, when an Interlocal Agreement was entered into by
four participating municipal corporations: Renton, Kent, Auburn and Tukwila. The provisions and terms of the “Interlocal
Cooperation Act”, pursuant to RCW 39.34, sanction the agreement. The initial duration of the agreement was five years and
thereafter is automatically extended for consecutive two-year periods, unless terminated by one or more of the participating
cities. Any such termination must be in writing and served upon the other cities on or before July 1 in any one year and such
termination shall then become effective on the last day of such year.
On August 4, 1999 the Administration Board of Valley Communications Center voted to include the City of Federal Way as a
full participating member city as of January 1, 2000. The five participating municipal corporations that include the cities of
Renton, Kent, Auburn, Tukwila, and Federal Way on April 17, 2000 entered into a new Interlocal Agreement, pursuant to RCW
39.34, et seq. This agreement reaffirmed Valley Communications Center as a governmental administration agency pursuant
to RCW 39.34.030 (3) (b).
SCHEDULE OF OUTSTANDING CONSTRUCTION OBLIGATIONS
As of December 31, 2019
Amount Outstanding
Street projects 1,360,253$
Utilities projects 498,235
Other projects 3,230,887
Total commitments 5,089,375$
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The purpose of the joint operation, hereafter referred to as Valley Com, is to provide improved consolidated emergency
communications (dispatch) services for police, fire and medical aid to the five participating cities and to the several
subscribing agencies, which include King County Fire Districts #2, #20, #40, #43, #44, #47, Black Diamond Fire Department,
Vashon Island Fire Department, City of Pacific Police and Fire Departments, City of Algona Police Department, City of Black
Diamond Police Department, City of Des Moines Police Department, SeaTac Fire Department, North Highline Fire
Department, and King County EMS Units. In 1988, King County Fire District #1 was annexed to the City of Tukwila. A separate
agreement between Valley Com and the subscribing agencies has been executed, which set forth condition of services and
rates charged.
The participating cities provide the majority of revenues to Valley Com. The method of allocating revenue source was
changed in 1990 to a basis of prior year’s calls with actual first and second quarter and estimated third and fourth quarter
calls. The allocation of prorated financial participation among the five participating cities is the percentage of estimated
dispatched calls attributed to each jurisdiction compared to the total actual and estimated dispatched calls, for the period
for January 1 through December 31. The percentages are applied to the current approved budget, less revenue from
subscribing agencies and all other sources.
The 2019 cost distribution for the five participating cities is as follows:
Dispatchable
Percent
of
Calls Total *
Kent 117,225 27.08%
Renton 90,760 20.96%
Auburn 98,169 22.68%
Tukwila 36,163 8.35%
Federal Way 90,616 20.93%
Total 432,933 100.00%
* Distribution of current year net income is based on these budgeted percentages.
Valley Com is served by an Administration Board composed of the Mayors or designated representatives from the five
participating cities of Renton, Kent, Auburn, Tukwila and Federal Way. The Administration Board is responsible for the
following functions: 1) Budget review and recommendation to the legislative bodies of the participating cities, and budget
adoption after each legislative body has approved the required financial participation for the ensuing year; 2) Approval of
appointment and/or discharge of the Director; 3) Approval of personnel policy and final decisions on all major policy changes;
4) Review and approval of all contracts.
In addition, an Operations Board provides direction and consists of two members of each participating City’s public safety
departments, including the heads of such departments or their designees. The Operations Board performs the following
functions: 1) Oversees the operation of Valley Com, advises and makes recommendations to the Administration Board; 2)
Makes recommendations on Director selection; 3) Presents proposed policies and budget to the Administration Board; 4)
Approves disbursement of funds by the Director.
The Director presents a proposed budget to the Operations Board on or before August 15 of each year. Said budget is then
presented to the Administration Board by September 1 of each year. The Administration Board can make changes to the
proposed Valley Com budget as it finds necessary, but final approval falls to the legislative body of each participating city in
accordance with the provisions of the Interlocal Agreement.
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In August 1993, Valley Com entered into an Interlocal Cooperation Agreement, pursuant to Chapter 39.34 RCW, with the sub-
regions of King County, Seattle and Eastside Public Safety Communications Agency (EPSCA). This agreement governs the
development, acquisition and installation of the 800 MHz emergency radio communications system (system) funded by the
$57 million King County levy.
This agreement provides that upon voluntary termination of any sub-region participation in the system, it surrenders its radio
frequencies, relinquishes its equipment and transfers any unexpended levy proceeds and association equipment
replacement reserves to another sub-region or consortium of sub-regions.
The share of equity belonging to the five participating cities is as follows:
Item Kent Renton Auburn Tukwila
Federal
Way Total
Equity Dec 31, 2018 $ 8,090,075 $ 5,882,811 $ 6,040,861 $ 2,950,970 $ 4,904,391 $ 27,869,108
Current year change 707,890 548,074 592,819 218,376 547,205 2,614,364
Equity Dec 31, 2019 $ 8,797,965 $ 6,430,885 $ 6,633,680 $ 3,169,346 $ 5,451,596 $ 30,483,472
% of equity 28.86% 21.10% 21.76% 10.40% 17.88%
% of 2019 distribution 27.08% 20.96% 22.68% 8.35% 20.93%
Liabilities are the responsibility of the five participating cities in direct proportion to their equity position.
Complete audited financial statements for Valley Communications Center can be obtained from Valley Communications
Center, 27519 108th Ave SE, Kent, WA 98030, or telephone 253-372-1300.
South Correctional Entity (SCORE)
On March 25, 2009, the Cities of Auburn, Burien, Des Moines, Federal Way, Renton, SeaTac and Tukwila, Washington
(Member Cities) entered into a SCORE Facility Interlocal Agreement (as amended and restated on October 1, 2009, the “2009
Interlocal Agreement”) pursuant to chapter 39.34 RCW (Interlocal Cooperation Act) to jointly construct, equip, maintain and
operate a consolidated regional misdemeanant correctional facility located in Des Moines, Washington (SCORE Facility) to
serve the parties to the 2009 Interlocal Agreement and state agencies and other local governments (Subscribing Agencies)
to provide correctional services essential to the preservation of the public health, safety and welfare. To carry out the
purposes of the 2009 Interlocal Agreement and to operate, manage and maintain the SCORE Facility, the Member Cities
formed the South Correctional Entity (SCORE), a separate governmental administrative agency pursuant to the 2009
Interlocal Agreement and RCW 39.34.030(3).
The 2009 Interlocal Agreement named the City of Des Moines as the “Host City” and the remaining Member Cities as the
“Owner Cities”. Pursuant to a separate “Host City Agreement” dated October 1, 2009, the Host City will not enjoy the same
equity position as the Owner Cities until all debts issued are paid and the Host City fulfills all of its obligation as outlined in
the Host City Agreement. Pursuant to SCORE financial policies, all unexpected funds or reserve funds shall be distributed
based on the percentage of the Member City’s average daily population at the SCORE facility for the last three (3) years
regardless of its Owner City or Host City status.
SCORE and the SCORE Facility may serve the Member Cities and Subscribing Agencies which are in need of correctional
facilities. Any agreement with a Subscribing Agency shall be in writing and approved by SCORE as provided within the SCORE
Formation Interlocal Agreement.
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SCORE, as a governmental administrative agency formed under the Interlocal Cooperation Act, is not expressly authorized
to issue bonds. To finance and refinance the costs of the SCORE Facility, the City of Renton, Washington, chartered the
South Correctional Entity Public Development Authority as a public corporation pursuant to RCW 35.21.730 through 35.21.757
(Public Corporation Act) and Ordinance No. 5444, passed on February 2, 2009 (Charter Ordinance). Completed financial
statements for SCORE and SCORE PDA can be obtained at SCORE, Attn: Finance Director, 20817 17th Avenue South, Des
Moines, WA. 98198.
2009 SCORE Bonds
The SCORE PDA issued its Bonds, Series 2009A (2009A Bonds) and Bonds, Series 2009B (Taxable Build America Bonds –
Direct Payment) (2009B Bonds, and, together the 2009 Bonds) on November 4, 2009 in the aggregate principal amount of
$86,235,000. Proceeds of the 2009 Bonds were used to finance a portion of the costs of acquiring, constructing, developing,
equipping and improving the SCORE Facility, to capitalize the interest during construction, and to pay costs of issuance for
the 2009 Bonds.
Pursuant to the 2009 Interlocal Agreement and the ordinances of each city, each Owner City (which includes the Cities of
Auburn, Burien, Federal Way, Renton, SeaTac, and Tukwila) is obligated to budget for and pay its share, and only its share,
of the principal of and interest on the 2009 Bonds as the same become due and payable (referred to as each Owner City’s
2009 Capital Contribution). Each Owner City’s obligation to pay its 2009 Capital Contribution is an irrevocable, unconditional
full faith and credit obligation of such Owner City, payable from regular property taxes levied within the constitutional and
statutory authority provided without a vote of the electors of the Owner City on all of the taxable property within the Owner
City and other sources of revenues available therefor.
The following is a summary of the debt service requirements and the old refunded 2009 Capital Contributions for the 2009
Bonds as of December 31, 2018:
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The City of Auburn reports its share of equity interest in the Governmental Activities column within the Government-wide
financial statements under non-current assets. The following is condensed (unaudited) financial information as of December
31, 2018 related to the old refunded 2009 Bonds:
Subsequent Activities: Refunding of 2009 Bonds and Amendment and Restatement of Interlocal Agreement
Pursuant to the 2009 Interlocal Agreement, on September 5, 2018, the City of Federal Way gave its notice of intent to
withdraw from SCORE effective December 31, 2019. The remaining Member Cities (including the cities of Auburn, Burien,
Des Moines, Renton, SeaTac and Tukwila) entered into an Amended and Restated SCORE Interlocal Agreement (2019
Interlocal Agreement), which amended and restated the 2009 Interlocal Agreement in its entirety, removed Federal Way as
a Member City (effective December 31, 2019) and an Owner City (effective immediately), added the City of Des Moines as
an Owner City, terminated the Host City Agreement, and made other revisions to provide for the issuance of bonds to
refund the 2009 bonds.
On December 11, 2019, the Authority issued its Refunding Bonds, Series 2019 in the aggregate principal amount of
$51,055,000 (2019 Bonds). The 2019 Interlocal Agreement became effective on the date of issuance of the 2019 Bonds.
Proceeds of the 2019 Bonds were used, together with a contribution from Federal Way to fully pay its 2009 Capital
Contribution, to defease and refund all of the outstanding 2009 Bonds. As a result, Federal Way has satisfied its 2009
Capital Contribution and as of December 31, 2019, will no longer be considered a Member City of SCORE.
Pursuant to the 2019 Interlocal Agreement and the ordinances of each city, each remaining Owner City (including the cities
of Auburn, Burien, Des Moines, Renton, SeaTac, and Tukwila) is obligated to budget for and pay its share, and only its
share, of the principal of and interest on the 2019 Bonds as the same become due and payable (referred to as each Owner
City’s 2019 Capital Contribution). Each Owner City’s obligation to pay its 2019 Capital Contribution is an irrevocable,
unconditional full faith and credit obligation of such owner City, payable from regular property taxes levied within the
constitutional and statutory authority provided without a vote of the electors of the Owner City on all of the taxable
property within the Owner City and other sources of revenues available therefor. The City of Federal Way is not obligated,
under the 2019 Interlocal Agreement or otherwise, to pay debt service on the 2019 Bonds or other debt of the Authority.
City of Auburn: 2019 CAFR Notes to the Financial Statements
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The following is a summary of the debt service requirements and the 2019 Capital Contributions for the 2019 Bonds:
Since the obligation to fund future joint venture-related debt is separately reported as due to other governments, the
investment in joint ventures is reported as a combination of this debt with the current reported equity in joint ventures as
follows:
Balance Additions Reductions Balance
12/31/2018 12/31/2019
Valley Communication Public Dev Auth -$ -$ -$ -$
SCORE Public Development Authority 22,202,200 17,838,617 (22,202,200) 17,838,617
Due to Other Governments 22,202,200 17,838,617 (22,202,200) 17,838,617
Valley Communications Center 6,040,861 592,819 - 6,633,680
South Correctional Entity (SCORE)4,097,405 9,388,551 - 13,485,956
Equity Share 10,138,266 9,981,370 - 20,119,636
Total Investment in Joint Ventures 37,958,253$
Investment in Joint Ventures
City of Auburn: 2019 CAFR Notes to the Financial Statements
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NOTE 16 – JOINTLY GOVERNED ORGANIZATION / RELATED PARTY
Residents of the cities of Auburn, Algona and Pacific approved in the November 7, 2006 general election the creation of a
regional fire authority pursuant to RCW 52.26. The new regional fire protection service authority, called the Valley Regional
Fire Authority (VRFA), provides first responder fire and emergency medical services to residents of Auburn, Algona and
Pacific. The VRFA is a new municipal corporation, with its own Governing Board, and is legally separate from the three cities
it serves. The Governing Board of the VRFA consists of the Mayors of the three cities within the VRFA service area, as well as
two Councilmembers from each city. Membership on the Governing Board is made by appointment from the city council of
the respective member cities. Effective January 1, 2007, all personnel, assets, equipment and contractual obligations of the
former Auburn Fire Department were transferred to the VRFA. Similar transfers were made by the cities of Algona and
Pacific.
In accordance with the interlocal agreement at time of formation, each member city retained its obligation for LEOFF 1
firefighter and Fire Relief and Pension Plan obligations. As of 2019 there are no longer any active LEOFF 1 firefighters.
Premium and benefit payments for retired LEOFF 1 firefighters for 2019 were $151,065. Medical premiums and benefit
payments made under the Fire Relief and Pension Plan for 2019 were $72,661.
NOTE 17 – CONTINGENCIES AND LITIGATIONS
As of December 31, 2019 a number of claims were pending against the City for damages and legal actions. While the outcome
of these actions is uncertain, no uncovered losses are anticipated at this time with these pending claims. In the event of a
liability finding against the City, it is anticipated that any potential adverse judgment against the City also would be subject
to coverage under the City’s general liability insurance.
The City participates in a number of federal and state assisted programs. These grants are subject to audit by the grantors
or their representatives. Such audits could result in requests for reimbursement to grantor agencies for expenditures
disallowed under the terms of the grants. The City’s management believes that such disallowances, if any, will be immaterial.
NOTE 18 – RISK MANAGEMENT & INSURANCE
Risk Management
The City is exposed to various risks of loss such as: theft and damage and destruction of assets, errors and omissions, injuries
or property damage to others, employees’ health, and natural disasters. All risk financing activities are accounted for in the
Insurance internal service fund. To insure against risks of loss the City of Auburn is a member of the Washington Cities
Insurance Authority (WCIA).
Utilizing Chapter 48.62 RCW (self-insurance regulation) and Chapter 39.34 RCW (Interlocal Cooperation Act), nine cities
originally formed WCIA on January 1, 1981. WCIA was created for the purpose of providing a pooling mechanism for jointly
purchasing insurance, jointly self-insuring, and / or jointly contracting for risk management services. WCIA has a total of 163
Members.
New members initially contract for a three-year term, and thereafter automatically renew on an annual basis. A one-year
withdrawal notice is required before membership can be terminated. Termination does not relieve a former member from
its unresolved loss history incurred during membership.
Liability coverage is written on an occurrence basis, without deductibles. Coverage includes general, automobile, police,
errors or omissions, stop gap, employment practices and employee benefits liability. Limits are $4 million per occurrence in
the self-insured layer, and $16 million in limits above the self-insured layer is provided by reinsurance. Total limits are $20
million per occurrence subject to aggregate sublimits. The Board of Directors determines the limits and terms of coverage
annually.
City of Auburn: 2019 CAFR Notes to the Financial Statements
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Insurance coverage for property, automobile physical damage, fidelity, inland marine, and boiler and machinery coverage are
purchased on a group basis. Various deductibles apply by type of coverage. Property coverage is self-funded from the
members’ deductible to $750,000, for all perils other than flood and earthquake, and insured above that to $300 million per
occurrence subject to aggregates and sublimits. Automobile physical damage coverage is self-funded from the members’
deductible to $250,000 and insured above that to $100 million per occurrence subject to aggregates and sublimits.
In-house services include risk management consultation, loss control field services, and claims and litigation administration.
WCIA contracts for certain claims investigations, consultants for personnel and land use issues, insurance brokerage,
actuarial, and lobbyist services.
WCIA is fully funded by its members, who make annual assessments on a prospectively rated basis, as determined by an
outside, independent actuary. The assessment covers loss, loss adjustment, reinsurance and administrative expenses. As
outlined in the interlocal, WCIA retains the right to additionally assess the membership for any funding shortfall.
An investment committee, using investment brokers, produces additional revenue by investment of WCIA’s assets in financial
instruments which comply with all State guidelines.
A Board of Directors governs WCIA, which is comprised of one designated representative from each member. The Board
elects an Executive Committee and appoints a Treasurer to provide general policy direction for the organization. The WCIA
Executive Director reports to the Executive Committee and is responsible for conducting the day to day operations of WCIA.
No settlement has exceeded insurance coverage over the past three years.
Workers’ Compensation
Title 51 RCW requires the City to ensure payment of benefits for job-related injuries and diseases through the Workers’
Compensation fund or through self-insurance. The City become self-insured for Worker’s Compensation in 2014. The
funding and allocations for the worker’s compensation program are reviewed by an actuary on an annual basis. The
actuarial study made by Bickmore as of December 31, 2019 projected ultimate loss during 2020 and 2021 program years to
be $577,000 and $610,000, respectively. At December 31, 2019 incurred but not reported and claims payable were
estimated at $932,000. At December 31, 2019 fund equity was $1,869,461. The City carriers excess works’ compensation
insurance coverage with a private carrier for losses exceeding $500,000 per occurrence to a maximum indemnity in
occurrence with statutory limits. Claims handling is currently contracted to an independent, qualified third party
administrator (TPA).
The Workers Compensation claims liability includes an estimated amount for claims that have been incurred but not
reported (IBNR). Reported claims liabilities are based on the requirements of GABS 10, which requires that a liability for
claims be reported if information prior to the issuance of the financial statements indicates that it is probable that a liability
has been incurred at the date of the financial statements and the amount of the loss can be reasonable estimated.
Changes in the Workers Compensation self-insurance fund claims liabilities in 2018 and 2019 were:
CHANGES OF ESTIMATED CLAIMS LIABILITIES FOR 2019 AND 2018
Workers Compensation
2019 2018
Beg. of Year Claims Liabilities $1,009,000 $1,055,000
Less: Claim Payments (126,178) (134,255)
Plus: Claims and Changes in Estimates 49,178 88,255
End of Year Claims Liabilities $932,000 $1,009,000
City of Auburn: 2019 CAFR Notes to the Financial Statements
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NOTE 19 – TAX ABATEMENTS
The city offers a multifamily property tax exemption within the downtown core to encourage construction of new
multifamily housing, and that the provisions of additional housing opportunities in the downtown core will assist in
achieving the goals of the city’s comprehensive plan. Under Chapter 84.14 RCW, the city provides the opportunity for a
limited, eight-year exemptions from ad valorem property taxation for a qualified new multifamily and rehabilitated
multifamily housing constructed in the downtown core and twelve-year exemptions from ad valorem property taxation for
qualified new affordable multifamily and rehabilitated multifamily housing contracted in the downtown core. Abatements
are obtained through application by the property owner, including proof of improvements that have been made, and equal
100 percent of the additional property tax resulting from the increase in assessed value as a result of the improvements. If
application is approved and all requirements meet, exemption begins January 1st, of the year immediately following the
calendar year of issuance of the final certificate of tax emption. If at any time it is determined the property no longer
complies with the terms of the contract or the requirements, or the use of the property for any reason no longer qualifies
for the tax exemption, the tax exemption shall be cancelled and additional taxes, interest and penalties imposed.
The city has the following tax abatement agreement(s) in place as of December 31, 2019.
1) Plan A Development LLC, project name Trek Apartments; a four story building of 126 apartment units with outdoor plaza
and ground parking and retail space. The final certificate of tax exemption was issued December 3, 2015, with the eight-
year ad valorem property tax exemption to start with tax year 2016. The city’s portion of the property tax abated during
the fiscal year 2019 was $38,801.
2) Merrill Gardens at Auburn LLC, project name Merrill Gardens; a senior living community with 129 apartment units (114
assisted living units and 15 memory care units). The building is four stories above grade with one level of below grade
parking. The final certificate of tax exemption was issued September 14, 2017, with the eight-year ad valorem property tax
exemption to start with tax year 2018. The city’s portion of the property tax abated during the fiscal year 2019 was $42,613.
NOTE 20 – SUBSEQUENT EVENTS
In February 2020, the Governor of the state of Washington declared a state of emergency in response to the spread of
coronavirus (COVID-19). In the weeks following the declaration, precautionary measures to slow the spread of the virus have
been ordered. These measures include closing schools, colleges and universities, cancelling public events, prohibiting public
and private gatherings, and requiring people to stay home unless they are leaving for an essential function.
In March 2020, the Mayor issued a Proclamation of Emergency as a proactive measure to protect the health and safety of
city residents. While this measure has subsequently led to the closure of city facilities to the public in conjunction with the
Governor’s Stay Home, Stay Healthy order, city staff continue to deliver municipal services through teleworking.
The length of time these measures will be in place, and the full extent of the financial impact is unknown at this time. The
Mayor and Leadership Team continue to monitor the situation during this period of uncertainty.
On June 16, 2020, the City issued $23,865,000 of utility system revenue and refunding bonds. The proceeds will be used to
advance refund the outstanding 2010 utility system revenue bonds in the principal amount of $14,505,000 and to fund water
utility system capital improvements. The bonds bear interest rates of 4 – 5% and will mature December 1, 2039.
104
City of Auburn: 2019 CAFR Required Supplemental Information
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REQUIRED SUPPLEMENTARY INFORMATION
Schedule of Proportionate Share of the Net Pension Liability
As of June 30, 2019
Last 10 Fiscal Years*
PERS 1 2019 2018 2017 2016 2015
Employer's proportion of the net pension liability (asset)0.184008%0.190096%0.192614%0.194185%0.192878%
Employer's proportionate share of the net pension liability (asset)7,075,761$ 8,489,752$ 9,139,685$ 10,428,649$ 10,089,313$
Covered payroll 25,792,744$ 24,866,577$ 24,085,628$ 22,947,013$ 21,788,519$
Employer's proportionate share of the net pension liability as a percentage
of its covered payroll 27.43%34.14%37.95%45.45%46.31%
Plan fiduciary net position as a percentage of the total pension liability 67.12%63.22%61.24%57.03%59.10%
PERS 2/3 2019 2018 2017 2016 2015
Employer's proportion of the net pension liability (asset)0.236778%0.239249%0.243488%0.247760%0.241739%
Employer's proportionate share of the net pension liability (asset)2,299,919$ 4,084,964$ 8,460,044$ 12,223,580$ 8,637,472$
Covered payroll 25,763,285$ 24,674,226$ 23,904,107$ 22,734,107$ 21,460,504$
Employer's proportionate share of the net pension liability as a percentage
of its covered payroll 8.93%16.56%35.39%53.77%40.25%
Plan fiduciary net position as a percentage of the total pension liability 97.77%95.77%90.97%85.82%89.20%
LEOFF 1 2019 2018 2017 2016 2015
Employer's proportion of the net pension liability (asset)0.097999%0.101761%0.102451%0.101574%0.103718%
Employer's proportionate share of the net pension liability (asset)(1,937,059)$ (1,847,473)$ (1,554,407)$ (1,046,503)$ (1,250,031)$
Covered payroll -$ -$ -$ -$ -$
Employer's proportionate share of the net pension liability as a percentage
of its covered payroll 0.00%0.00%0.00%0.00%0.00%
Plan fiduciary net position as a percentage of the total pension liability 148.78%144.42%136.00%123.74%127.36%
LEOFF 2 2019 2018 2017 2016 2015
Employer's proportion of the net pension liability (asset)0.394720%0.403472%0.370954%0.359661%0.354511%
Employer's proportionate share of the net pension liability (asset)(9,144,451)$ (8,191,361)$ (5,147,640)$ (2,091,896)$ (2,193,486)$
State's proportionate share of the net pension liability (asset) associated
with the employer (5,988,390)$ (5,303,752)$ (3,339,178)$ (1,363,764)$ (1,450,178)$
Total (15,132,841)$ (13,495,113)$ (8,486,818)$ (3,455,660)$ (3,643,664)$
Covered payroll 13,248,982$ 12,697,917$ 11,623,292$ 10,953,667$ 10,336,409$
Employer's proportionate share of the net pension liability as a percentage
of its covered payroll -69.02%-64.51%-44.29%-19.10%-21.22%
Plan fiduciary net position as a percentage of the total pension liability 119.43%118.50%113.40%106.04%111.67%
City of Auburn: 2019 CAFR Required Supplemental Information
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REQUIRED SUPPLEMENTARY INFORMATION
Schedule of Proportionate Share of the Net Pension Liability
As of June 30, 2019
Last 10 Fiscal Years*
* The City implemented GASB Statement No. 68 in fiscal year 2015. Information is not available for prior years. The schedule
will be built prospectively until it contains ten years of data.
Notes to Schedule:
Significant methods and assumptions used in calculating the actuarial determined contribution are presented in Note 10.
Contribution and covered payroll on this schedule is based on the plan fiscal year – July 1 – June 30.
The LEOFF 1 plan is closed and has no further covered payroll.
City of Auburn: 2019 CAFR Required Supplemental Information
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REQUIRED SUPPLEMENTARY INFORMATION
Schedule of Employer Contributions
As of December 31 2019
Last 10 Fiscal Years*
* The City implemented GASB Statement No. 68 in fiscal year 2015. Information is not available for prior years. The schedule
will be built prospectively until it contains ten years of data.
Note to Schedule:
Significant methods and assumptions used in calculating the actuarial determined contribution are presented in Note 10.
PERS 1 2019 2018 2017 2016 2015
Statutorily or contractually required contributions 1,310,731$ 1,296,482$ 1,216,069$ 1,132,885$ 1,001,824$
Contributions in relation to the statutorily or contractually required contributions (1,310,731)$ (1,296,482)$ (1,216,069)$ (1,132,885)$ (1,001,824)$
Contribution deficiency (excess)-$ -$ -$ -$ -$
Covered payroll 26,516,814$ 25,212,705$ 24,538,921$ 23,510,382$ 22,436,909$
Contributions as a percentage of covered payroll 4.94%5.14%4.96%4.82%4.47%
PERS 2/3 2019 2018 2017 2016 2015
Statutorily or contractually required contributions 2,047,116$ 1,941,592$ 1,714,887$ 1,495,562$ 1,286,928$
Contributions in relation to the statutorily or contractually required contributions (2,047,116)$ (1,941,592)$ (1,714,887)$ (1,495,562)$ (1,286,928)$
Contribution deficiency (excess)-$ -$ -$ -$ -$
Covered payroll 26,516,814$ 25,087,758$ 24,350,435$ 23,330,702$ 22,130,501$
Contributions as a percentage of covered payroll 7.72%7.74%7.04%6.41%5.82%
LEOFF 2 2019 2018 2017 2016 2015
Statutorily or contractually required contributions 730,140$ 708,333$ 639,662$ 594,665$ 551,812$
Contributions in relation to the statutorily or contractually required contributions (730,140)$ (708,333)$ (639,662)$ (594,665)$ (551,812)$
Contribution deficiency (excess)-$ -$ -$ -$ -$
Covered payroll 13,597,937$ 13,044,797$ 11,992,821$ 11,370,216$ 10,553,437$
Contributions as a percentage of covered payroll 5.37%5.43%5.33%5.23%5.23%
City of Auburn: 2019 CAFR Required Supplemental Information
108
REQUIRED SUPPLEMENTARY INFORMATION
Schedule of Changes in Total Pension Liability & Related Ratios
Fire Relief and Pension Plan
Last 10 Fiscal Years *
* The City implemented GASB Statement No. 73 in fiscal year 2017. Information is not available for prior years. The schedule
will be built prospectively until it contains ten years of data.
Notes to Schedule:
No assets have been accumulated in a trust that meets the criteria of a qualified plan.
The effect of assumption changes or inputs is the result of a change in the discount rate from 4.00% as of December 31, 2018
to 2.75% as of December 31, 2019.
Significant methods and assumptions used in calculating the actuarial determined contribution are presented in Note 10.
2019 2018 2017 2016 2015 2014 2013 2012 2011 2010
Total Pension Liability - Beginning 2,973,304$ 3,212,435$ 3,218,004$ N/A N/A N/A N/A N/A N/A N/A
Service Cost - - - N/A N/A N/A N/A N/A N/A N/A
Interest on Total Pension Liability 114,553 108,873 116,957 N/A N/A N/A N/A N/A N/A N/A
Effect of Plan Changes - - - N/A N/A N/A N/A N/A N/A N/A
Effect of Economic/Demographic Gains (Losses)208,957 - - N/A N/A N/A N/A N/A N/A N/A
Effect of Assumption Changes or Inputs 376,773 (142,719) 77,612 N/A N/A N/A N/A N/A N/A N/A
Benefit Payments (221,139) (205,285) (200,138) N/A N/A N/A N/A N/A N/A N/A
Net Change in Total Pension Liability 479,144 (239,131) (5,569) N/A N/A N/A N/A N/A N/A N/A
Total Pension Liability - Ending 3,452,448$ 2,973,304$ 3,212,435$ N/A N/A N/A N/A N/A N/A N/A
Covered Payroll - - - N/A N/A N/A N/A N/A N/A N/A
Total Pension Liability as a % of Covered Payroll N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
Fiscal Year Ending December 31
City of Auburn: 2019 CAFR Required Supplemental Information
109
REQUIRED SUPPLEMENTARY INFORMATION
Schedule of Changes in Total OPEB Liability and Related Ratios
Firemen’s Relief and Pension Plan and LEOFF 1 Employees
For the Year Ended December 31
Last 10 Fiscal Years*
* The City implemented GASB Statement No. 75 in fiscal year 2018. Information is not available for prior years. The schedule
will be built prospectively until it contains ten years of data.
Notes to Schedule:
No assets have been accumulated in a trust that meets the criteria in paragraph 4 of GASB 75 to pay related benefits.
The effect of assumption changes or inputs is the result of a change in the discount rate from 4.00% as of December 31, 2018
to 2.75% as of December 31, 2019.
Significant methods and assumptions used in calculating the actuarial determined contribution are presented in Note 10.
2019 2018 2017 2016 2015 2014 2013 2012 2011 2010
Total OPEB Liability - Beginning 16,228,865$ 17,472,360$ N/A N/A N/A N/A N/A N/A N/A N/A
Service Cost - - N/A N/A N/A N/A N/A N/A N/A N/A
Interest on Total OPEB Liability 636,891 597,724 N/A N/A N/A N/A N/A N/A N/A N/A
Changes of Benefit Terms - - N/A N/A N/A N/A N/A N/A N/A N/A
Effect of Economic/Demographic Gains (Losse (3,427,650) - N/A N/A N/A N/A N/A N/A N/A N/A
Effect of Assumption Changes or Inputs 883,507 (1,045,269) N/A N/A N/A N/A N/A N/A N/A N/A
Expected Benefit Payments (619,254) (795,950) N/A N/A N/A N/A N/A N/A N/A N/A
Total OPEB Liability - Ending 13,702,359$ 16,228,865$ N/A N/A N/A N/A N/A N/A N/A N/A
Covered Payroll - - N/A N/A N/A N/A N/A N/A N/A N/A
Total OPEB Liability as a % of Covered Payroll N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
Fiscal Year Ending December 31
City of Auburn: 2019 CAFR Required Supplemental Information
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City of Auburn: 2019 CAFR Fund Financial Statements and Schedules
111
NON-MAJOR GOVERNMENTAL FUNDS
The City has four types of Non-Major Governmental Funds.
Special Revenue Funds
Special revenue funds account for the proceeds of specific revenue sources and are segregated into
individual funds to ensure that expenditures are made exclusively for qualified purposes. Special
revenue funds are accounted for on a modified accrual basis. Biennial budgets are adopted with
appropriations lapsing at year-end.
Debt Service Funds
Debt service funds account for payments of principal and interest on general obligation and special
assessment long-term debt.
Capital Project Funds
Capital project funds account for the City of Auburn's financial resources used for the acquisition or
construction of major non-proprietary capital facilities.
Permanent Funds
Permanent funds are used to report resources that are legally restricted to the extent that only
earnings, and not principal, may be used for purposes that support City programs that are for the
benefit of the City or its citizens.
City of Auburn: 2019 CAFR Fund Financial Statements and Schedules
112
Total Total Total Total Total
Nonmajor Nonmajor Nonmajor Nonmajor Nonmajor
Special Revenue Debt Service Capital Projects Permanent Governmental
Funds Funds Funds Funds Funds
ASSETS:
Cash and Cash Equivalents 22,868,663$ 39,999$ 868,884$ 475,226$ 24,252,772$
Investments - - - 1,513,820 1,513,820
Receivables:
Customer Accounts 81,015 - - - 81,015
Other Receivables 298,438 - - - 298,438
Special Assessments - 1,730 - - 1,730
Due From Other Governmental Units 511,507 - 261,906 - 773,413
Total Assets 23,759,623 41,729 1,130,790 1,989,046 26,921,188
LIABILITIES, DEFERRED INFLOWS AND FUND BALANCES:
Liabilities:
Current Payables 1,227,736 - 85,635 - 1,313,371
Interfund Payable (Note 5)100,000 - -- 100,000
Other Liabilities Payable 1,956,955 - -- 1,956,955
Total Liabilities 3,284,691 - 85,635 - 3,370,326
Deferred Inflow of Resources:
Unavailable Revenue-Special Assessments - 1,730 - - 1,730
Total Deferred Inflow of Resources - 1,730 - - 1,730
Fund Balances:
Nonspendable - - - 1,826,063 1,826,063
Restricted 16,994,737 1,917 665,416 - 17,662,070
Committed 3,172,152 - - - 3,172,152
Assigned 308,043 38,082 379,739 162,983 888,847
Total Fund Balances 20,474,932 39,999 1,045,155 1,989,046 23,549,132
Total Liabilities, Deferred Inflows and Fund
Balances 23,759,623$ 41,729$ 1,130,790$ 1,989,046$ 26,921,188$
December 31, 2019
City of Auburn, Washington
COMBINING BALANCE SHEET
NON-MAJOR GOVERNMENT FUNDS
City of Auburn: 2019 CAFR Fund Financial Statements and Schedules
113
Total Total Total Total Total
Nonmajor Nonmajor Nonmajor Nonmajor Nonmajor
Special Revenue Debt Service Capital Projects Permanent Governmental
REVENUES:
Taxes:
Property -$ -$ 150,803$ -$ 150,803$
Retail Sales & Use - 254,494 - - 254,494
Interfund Utility 680,033 - - - 680,033
Utility 1,264,422 - - - 1,264,422
Excise 141,226 - - - 141,226
Other 73,577 - - - 73,577
Intergovernmental 1,939,085 463,505 547,505 - 2,950,095
Charges for Services 2,868,447 - 6,367 50,610 2,925,424
Special Assessments - 2,807 - - 2,807
Investment Earnings 431,256 2,218 19,004 41,607 494,085
Miscellaneous 1,066,520 881 66,911 - 1,134,312
Total Revenues 8,464,566 723,905 790,590 92,217 10,071,278
EXPENDITURES:
Current:
Security of Persons & Property 296,666 - - - 296,666
Transportation 6,149,378 - - - 6,149,378
Economic Environment 890,702 - - - 890,702
Debt Service:
Principal - 1,175,766 - - 1,175,766
Interest - 1,450,022 - - 1,450,022
Capital Outlay - - 1,338,425 - 1,338,425
Total Expenditures 7,336,746 2,625,788 1,338,425 - 11,300,959
Excess (Deficiency) of Revenues
Over (Under) Expenditures 1,127,820 (1,901,883) (547,835) 92,217 (1,229,681)
OTHER FINANCING SOURCES (USES):
Insurance Recoveries - - 49,259 - 49,259
Transfers In (Note 5)2,969,187 1,921,645 545,840 - 5,436,672
Transfers Out (Note 5)(1,227,735) - - - (1,227,735)
Total Other Financing Sources (Uses)1,741,452 1,921,645 595,099 - 4,258,196
Net Change in Fund Balances 2,869,272 19,762 47,264 92,217 3,028,515
Fund Balances - Beginning 17,605,660 20,237 997,891 1,896,829 20,520,617
Fund Balances - Ending 20,474,932$ 39,999$ 1,045,155$ 1,989,046$ 23,549,132$
City of Auburn, Washington
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
NON-MAJOR GOVERNMENT FUNDS
For the Year Ended December 31, 2019
City of Auburn: 2019 CAFR Fund Financial Statements and Schedules
114
City of Auburn: 2019 CAFR Fund Financial Statements and Schedules
115
NON-MAJOR GOVERNMENTAL FUNDS
SPECIAL REVENUE FUNDS
Special revenue funds account for the proceeds of specific revenue sources and are segregated into
individual funds to ensure that expenditures are made exclusively for qualified purposes. Special
revenue funds are accounted for on a modified accrual basis. Annual budgets are adopted with
appropriations lapsing each year of the biennium. The City has eight non-major special revenue
funds.
The Local Street Fund
This fund was created when Auburn voters approved the Save Our Streets lid lift in 2004 and is used
to account for all revenues and expenditures related to this initiative.
Hotel/Motel Tax Fund
This fund was created to account for the hotel/motel taxes levied to support City tourist promotion.
Arterial Street Preservation Fund
This fund was created to repair classified arterial streets and is funded from a one percent utility tax
increase that was adopted by Council in 2008.
Drug Forfeiture Fund
Money seized and forfeited from drug activity is deposited in this fund to be used exclusively for
drug investigation and enforcement.
The Housing and Community Development Fund
Accounts for projects associated with the Community Development Block Grant program.
The Recreational Trails Fund
Created for the purpose of trail development. This is a tax-supported fund.
The Business Improvement Area Fund
Accounts for special assessments on downtown merchants for ongoing services and for
improvements made to the downtown area.
Mitigation Fees
Accounts for the receipt of contracted mitigation fees for streets and fire service.
City of Auburn: 2019 CAFR Fund Financial Statements and Schedules
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Page 1 of 2
Hotel/Arterial Housing
Local Motel Street Drug Community
Streets Tax Preservation Forfeiture Development
ASSETS:
Cash and Cash Equivalents 3,143,992$ 266,466$ 1,427,577$ 1,410,477$ 50,734$
Receivables:
Customer Accounts - - 80,604 411 -
Other Receivables - - 298,438 - -
Due From Other Governmental Units - - 392,693 13,326 105,488
Total Assets 3,143,992 266,466 2,199,312 1,424,214 156,222
LIABILITIES AND FUND BALANCES:
Liabilities:
Current Payables 593,380 17,280 157,393 146,241 13,318
Interfund Payable (Note 5)- - - - 100,000
Other Liabilities Payable - - - - -
Total Liabilities 593,380 17,280 157,393 146,241 113,318
Fund Balances:
Restricted - 249,186 1,226,279 1,252,739 42,904
Committed 2,478,880 - 693,272 - -
Assigned 71,732 - 122,368 25,234 -
Total Fund Balances 2,550,612 249,186 2,041,919 1,277,973 42,904
Total Liabilities and Fund Balances 3,143,992$ 266,466$ 2,199,312$ 1,424,214$ 156,222$
City of Auburn, Washington
COMBINING BALANCE SHEET
NON-MAJOR SPECIAL REVENUE FUNDS
December 31, 2019
City of Auburn: 2019 CAFR Fund Financial Statements and Schedules
117
Page 2 of 2
Total
Business Nonmajor
Recreational Improvement Mitigation Special Revenue
Trails Area Fees Funds
74,425$ 133,825$ 16,361,167$ 22,868,663$
- - - 81,015
- - - 298,438
- - - 511,507
74,425 133,825 16,361,167 23,759,623
- - 300,124 1,227,736
- - - 100,000
- - 1,956,955 1,956,955
- - 2,257,079 3,284,691
72,876 130,916 14,019,837 16,994,737
- - - 3,172,152
1,549 2,909 84,251 308,043
74,425 133,825 14,104,088 20,474,932
74,425$ 133,825$ 16,361,167$ 23,759,623$
City of Auburn: 2019 CAFR Fund Financial Statements and Schedules
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Page 1 of 2
Hotel/Arterial Housing
Local Motel Street Drug Community
Streets Tax Preservation Forfeiture Development
REVENUES:
Taxes:
Interfund Utility -$ -$ 680,033$ -$ -$
Utility - - 1,264,422 - -
Excise - 141,226 - - -
Other - - - - -
Intergovernmental - - 1,226,279 - 705,806
Charges for Services - 3,500 80,603 25,691 -
Investment Earnings 71,732 4,807 41,765 25,234 -
Miscellaneous - - - 1,066,520 -
Total Revenues 71,732 149,533 3,293,102 1,117,445 705,806
EXPENDITURES:
Current:
Security of Persons and Property - - - 296,666 -
Transportation 2,221,077 - 3,928,301 - -
Economic Environment - 88,422 - - 743,806
Total Expenditures 2,221,077 88,422 3,928,301 296,666 743,806
Excess (Deficiency) of Revenues
Over (Under) Expenditures (2,149,345) 61,111 (635,199) 820,779 (38,000)
OTHER FINANCING SOURCES (USES):
Transfers In (Note 5)1,900,000 - 632,659 - 38,000
Transfers Out (Note 5)- (9,600) - - -
Total Other Financing Sources (Uses)1,900,000 (9,600) 632,659 - 38,000
Net Change in Fund Balances (249,345) 51,511 (2,540) 820,779 -
Fund Balances - Beginning 2,799,957 197,675 2,044,459 457,194 42,904
Fund Balances - Ending 2,550,612$ 249,186$ 2,041,919$ 1,277,973$ 42,904$
City of Auburn, Washington
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
NON-MAJOR SPECIAL REVENUE FUNDS
For the Year Ended December 31, 2019
City of Auburn: 2019 CAFR Fund Financial Statements and Schedules
119
Page 2 of 2
Total
Business Nonmajor
Recreational Improvement Mitigation Special Revenue
Trails Area Fees Funds
-$ -$ -$ 680,033$
- - - 1,264,422
- - - 141,226
- 73,577 - 73,577
7,000 - - 1,939,085
- - 2,758,653 2,868,447
1,549 2,909 283,260 431,256
- - - 1,066,520
8,549 76,486 3,041,913 8,464,566
- - - 296,666
- - - 6,149,378
- 58,474 - 890,702
- 58,474 - 7,336,746
8,549 18,012 3,041,913 1,127,820
- - 398,528 2,969,187
- - (1,218,135) (1,227,735)
- - (819,607) 1,741,452
8,549 18,012 2,222,306 2,869,272
65,876 115,813 11,881,782 17,605,660
74,425$ 133,825$ 14,104,088$ 20,474,932$
City of Auburn: 2019 CAFR Fund Financial Statements and Schedules
120
Variance with
Final Final Budget
Original Adopted Actual Positive
(GAAP Basis)(GAAP Basis)Results (Negative)
REVENUES:
Investment Earnings 12,000$ 12,000$ 71,732$ 59,732$
Total Revenues 12,000 12,000 71,732 59,732
EXPENDITURES:
Current:
Transportation 2,605,900 3,505,376 2,221,077 1,284,299
Total Expenditures 2,605,900 3,505,376 2,221,077 1,284,299
Excess (Deficiency) of Revenues
Over (Under) Expenditures (2,593,900) (3,493,376) (2,149,345) 1,344,031
OTHER FINANCING SOURCES (USES):
Transfers In (Note 5)1,900,000 1,900,000 1,900,000 -
Total Other Financing Sources (Uses)1,900,000 1,900,000 1,900,000 -
Net Change in Fund Balances (693,900) (1,593,376) (249,345) 1,344,031
Fund Balances - Beginning 1,650,780 2,799,957 2,799,957 -
Fund Balances - Ending 956,880$ 1,206,581$ 2,550,612$ 1,344,031$
Budget Amounts
For the Year Ended December 31, 2019
City of Auburn, Washington
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
LOCAL STREETS SPECIAL REVENUE FUND
City of Auburn: 2019 CAFR Fund Financial Statements and Schedules
121
Variance with
Final Final Budget
Original Adopted Actual Positive
(GAAP Basis)(GAAP Basis)Results (Negative)
REVENUES:
Taxes:
Excise 150,000$ 150,000$ 141,226$ (8,774)$
Charges for Services - - 3,500 3,500
Investment Earnings 3,600 3,600 4,807 1,207
Total Revenues 153,600 153,600 149,533 (4,067)
EXPENDITURES:
Current:
Economic Environment 160,050 192,100 88,422 103,678
Total Expenditures 160,050 192,100 88,422 103,678
Excess (Deficiency) of Revenues
Over (Under) Expenditures (6,450) (38,500) 61,111 99,611
OTHER FINANCING SOURCES (USES):
Transfers Out (Note 5)- (9,600) (9,600) -
Total Other Financing sources and Uses - (9,600) (9,600) -
Net Change in fund Balances (6,450) (48,100) 51,511 99,611
Fund Balances - Beginning 108,571 197,675 197,675 -
Fund Balances - Ending 102,121$ 149,575$ 249,186$ 99,611$
Budget Amounts
For the Year Ended December 31, 2019
City of Auburn, Washington
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
HOTEL/MOTEL TAX SPECIAL REVENUE FUND
City of Auburn: 2019 CAFR Fund Financial Statements and Schedules
122
Variance with
Final Final Budget
Original Adopted Actual Positive
(GAAP Basis)(GAAP Basis)Results (Negative)
REVENUES:
Taxes:
Interfund Utility 674,600$ 674,600$ 680,033$ 5,433$
Utility 1,361,300 1,361,300 1,264,422 (96,878)
Intergovernmental 893,620 1,701,111 1,226,279 (474,832)
Charges for Services - - 80,603 80,603
Investment Earnings 29,800 29,800 41,765 11,965
Total Revenues 2,959,320 3,766,811 3,293,102 (473,709)
EXPENDITURES:
Current:
Transportation 3,172,240 5,696,722 3,928,301 1,768,421
Total Expenditures 3,172,240 5,696,722 3,928,301 1,768,421
Excess (Deficiency) of Revenues
Over (Under) Expenditures (212,920) (1,929,911) (635,199) 1,294,712
OTHER FINANCING SOURCES (USES):
Transfers In (Note 5)- 1,445,679 632,659 (813,020)
Transfers Out (Note 5)- (26,831) - 26,831
Total Other Financing Sources (Uses)- 1,418,848 632,659 (786,189)
Net Change in Fund Balances (212,920) (511,063) (2,540) 508,523
Fund Balances - Beginning 1,582,337 2,044,459 2,044,459 -
Fund Balances - Ending 1,369,417$ 1,533,396$ 2,041,919$ 508,523$
Budget Amounts
For the Year Ended December 31, 2019
City of Auburn, Washington
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
ARTERIAL STREET PRESERVATION SPECIAL REVENUE FUND
City of Auburn: 2019 CAFR Fund Financial Statements and Schedules
123
Variance with
Final Final Budget
Original Adopted Actual Positive
(GAAP Basis)(GAAP Basis)Results (Negative)
REVENUES:
Charges for Services 18,000$ 18,000$ 25,691$ 7,691$
Investment Earnings 6,000 6,000 25,234 19,234
Miscellaneous 131,000 131,000 1,066,520 935,520
Total Revenues 155,000 155,000 1,117,445 962,445
EXPENDITURES:
Current:
Security of Persons & Property 298,037 325,037 296,666 28,371
Total Expenditures 298,037 325,037 296,666 28,371
Excess (Deficiency of Revenues
Over (Under) Expenditures (143,037) (170,037) 820,779 990,816
Net Change in Fund Balances (143,037) (170,037) 820,779 990,816
Fund Balances - Beginning 376,497 457,194 457,194 -
Fund Balances - Ending 233,460$ 287,157$ 1,277,973$ 990,816$
Budget Amounts
For the Year Ended December 31, 2019
City of Auburn, Washington
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
DRUG FORFEITURE SPECIAL REVENUE FUND
City of Auburn: 2019 CAFR Fund Financial Statements and Schedules
124
Variance with
Final Final Budget
Original Adopted Actual Positive
(GAAP Basis)(GAAP Basis)Results (Negative)
REVENUES:
Intergovernmental 590,000$ 859,900$ 705,806$ (154,094)$
Total Revenues 590,000 859,900 705,806 (154,094)
EXPENDITURES:
Current:
Economic Environment 590,000 899,900 743,806 156,094
Total Expenditures 590,000 899,900 743,806 156,094
Excess (Deficiency) of Revenues
Over (Under) Expenditures - (40,000) (38,000) 2,000
OTHER FINANCING SOURCES (USES):
Transfers In (Note 5)- 40,000 38,000 (2,000)
Total Other Financing Sources and Uses - 40,000 38,000 (2,000)
Net Change in Fund Balances - - - -
Fund Balances - Beginning 36,458 42,904 42,904 -
Fund Balances - Ending 36,458$ 42,904$ 42,904$ -$
Budget Amounts
For the Year Ended December 31, 2019
City of Auburn, Washington
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
HOUSING & COMMUNITY DEVELOPMENT SPECIAL REVENUE FUND
City of Auburn: 2019 CAFR Fund Financial Statements and Schedules
125
Variance with
Final Final Budget
Original Adopted Actual Positive
(GAAP Basis)(GAAP Basis)Results (Negative)
REVENUES:
Intergovernmental 7,000$ 7,000$ 7,000$ -$
Investment Earnings 100 100 1,549 1,449
Total Revenues 7,100 7,100 8,549 1,449
Excess (Deficiency) of Revenues
Over (Under) Expenditures 7,100 7,100 8,549 1,449
Net Change in Fund Balances 7,100 7,100 8,549 1,449
Fund Balances - Beginning 64,326 65,876 65,876 -
Fund Balances - Ending 71,426$ 72,976$ 74,425$ 1,449$
Budget Amounts
For the Year Ended December 31, 2019
City of Auburn, Washington
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
RECREATION TRAILS SPECIAL REVENUE FUND
City of Auburn: 2019 CAFR Fund Financial Statements and Schedules
126
Variance with
Final Final Budget
Original Adopted Actual Positive
(GAAP Basis)(GAAP Basis)Results (Negative)
REVENUES:
Taxes:
Other 55,000$ 55,000$ 73,577$ 18,577$
Investment Earnings 200 200 2,909 2,709
Total Revenues 55,200 55,200 76,486 21,286
EXPENDITURES:
Current:
Economic Environment 90,000 95,400 58,474 36,926
Total Expenditures 90,000 95,400 58,474 36,926
Excess (Deficiency) of Revenues
Over (Under) Expenditures (34,800) (40,200) 18,012 58,212
Net Change in Fund Balances (34,800) (40,200) 18,012 58,212
Fund Balances - Beginning 109,473 115,813 115,813 -
Fund Balances - Ending 74,673$ 75,613$ 133,825$ 58,212$
Budget Amounts
For the Year Ended December 31, 2019
City of Auburn, Washington
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
BUSINESS IMPROVEMENT AREA SPECIAL REVENUE FUND
City of Auburn: 2019 CAFR Fund Financial Statements and Schedules
127
Variance with
Final Final Budget
Original Adopted Actual Positive
(GAAP Basis)(GAAP Basis)Results (Negative)
REVENUES:
Investment Earnings 180,200$ 180,200$ 267,449$ 87,249$
Total Revenues 180,200 180,200 267,449 87,249
Excess (Deficiency) of Revenues
Over (Under) Expenditures 180,200 180,200 267,449 87,249
OTHER FINANCING SOURCES (USES):
Transfers Out (Note 5)(142,200) (142,200) - 142,200
Total Other Financing Sources (Uses)(142,200) (142,200) - 142,200
Net Change in Fund Balances 38,000 38,000 267,449 229,449
Fund Balances - Beginning 10,124,312 10,158,066 10,158,066 -
Fund Balances - Ending 10,162,312$ 10,196,066$ 10,425,515$ 229,449$
RECONCILIATION OF PERSPECTIVE DIFFERENCE BETWEEN BUDGETARY INFORMATION AND
GENERALLY ACCEPTED ACCOUNTING PRINCIPLES (GAAP):
The Cumulative Reserve Fund is combined with
the General Fund for purposes of GASB Statement 54 (10,425,515)
Fund Balance - Ending (GAAP)-$
The notes to the financial statements are an integral part of this statement.
Budget Amounts
For the Year Ended December 31, 2019
City of Auburn, Washington
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
CUMULATIVE RESERVE SPECIAL REVENUE FUND
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128
Variance with
Final Final Budget
Original Adopted Actual Positive
(GAAP Basis)(GAAP Basis)Results (Negative)
REVENUES:
Charges for Services 1,001,200$ 1,001,200$ 2,758,653$ 1,757,453$
Investment Earnings 195,000 195,000 283,260 88,260
Total Revenues 1,196,200 1,196,200 3,041,913 1,845,713
EXPENDITURES:
Current:
Security of Person & Property 75,000 75,000 - 75,000
Total Expenditures 75,000 75,000 - 75,000
Excess (Deficiency) of Revenues
Over (Under) Expenditures 1,121,200 1,121,200 3,041,913 1,920,713
OTHER FINANCING SOURCES (USES):
Transfers In (Note 5)- 416,200 398,528 (17,672)
Transfers Out (Note 5)(2,905,350) (4,386,406) (1,218,135) 3,168,271
Total Other Financing Sources (Uses)(2,905,350) (3,970,206) (819,607) 3,150,599
Net Change in Fund Balances (1,784,150) (2,849,006) 2,222,306 5,071,312
Fund Balances - Beginning 10,886,137 11,881,782 11,881,782 -
Fund Balances - Ending 9,101,987$ 9,032,776$ 14,104,088$ 5,071,312$
Budget Amounts
For the Year Ended December 31, 2019
City of Auburn, Washington
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
MITIGATION SPECIAL REVENUE FUND
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129
NON-MAJOR GOVERNMENTAL FUNDS
DEBT SERVICE FUNDS
Debt service funds account for payments of principal and interest on general obligation and special
assessment long-term debt. The City of Auburn has two outstanding general obligation issues, and two
special assessment funds.
The 2010 A Series (non-refunding portion) and B Series General Obligation Bonds
Accounts for debt service on a Council-approved bond issue to finance acquisition costs of certain
condominium units in the City Hall Annex.
The 2010 C Series and 2010 D Series General Obligation Bonds
Accounts for the debt service on a Council-approved bond issue to finance a portion of the downtown
infrastructure improvements in the City’s revitalization area.
The 2016 General Obligation Bonds
Accounts for the debt service on a Council-approved bond issue to refund on a current basis the 2005
General Obligation Refunding Airport Bonds and refunding on an advance basis the 2006A General
Obligation Bonds for Golf and Cemetery.
The L.I.D. Guarantee Fund
This fund provides financial security for outstanding L.I.D. bonds and special assessment debt.
Special Assessment Debt Fund
Accounts for the special assessment collections and debt service payments for all local improvement
districts located within the City.
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130
Total
2010 2010 2016 Nonmajor
A & B C & D Local Combined Refunding LID Special Debt Service
Annex Revitalization Golf/Cemetery Guarantee Assessments Funds
ASSETS:
Cash and Cash Equivalents 4,489$ 33,593$ -$ 1,669$ 248$ 39,999$
Special Assessments - - - - 1,730 1,730
Total Assets 4,489 33,593 - 1,669 1,978 41,729
LIABILITIES, DEFERRED INFLOWS AND FUND BALANCES:
Deferred Inflows of Resources:
Unavailable Revenue - Special Assessments - - - - 1,730 1,730
Total Deferred Inflows of Resources - - - - 1,730 1,730
Fund Balances:
Restricted - - - 1,669 248 1,917
Assigned 4,489 33,593 - - - 38,082
Total Fund Balances 4,489 33,593 - 1,669 248 39,999
Total Liabilities, Deferred Inflows and
Fund Balances 4,489$ 33,593$ -$ 1,669$ 1,978$ 41,729$
City of Auburn, WashingtonCOMBINING BALANCE SHEET
NON-MAJOR DEBT SERVICE FUNDS
December 31, 2019
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131
Total
2010 2010 2016 Nonmajor
A & B C & D Local Combined Refunding L I D Special Debt Service
Annex Revitalization Golf/Cemetery Guarantee Assessments Funds
REVENUES:
Taxes:
Retail Sales & Use -$ 254,494$ -$ -$ -$ 254,494$
Special Assessments - - - - 2,807 2,807
Intergovernmental 353,437 110,068 - - - 463,505
Investment Earnings - 2,130 - 36 52 2,218
Miscellanous - - - - 881 881
Total Revenues 353,437 366,692 - 36 3,740 723,905
EXPENDITURES:
Debt Service:
Principal 590,000 245,000 333,866 - 6,900 1,175,766
Interest 1,074,848 334,731 40,098 - 345 1,450,022
Total Expenditures 1,664,848 579,731 373,964 - 7,245 2,625,788
Excess (Deficiency) of Revenues
Over (Under) Expenditures (1,311,411) (213,039) (373,964) 36 (3,505) (1,901,883)
OTHER FINANCING SOURCES (USES):
Transfers In (Note 5)1,315,900 231,800 373,945 - - 1,921,645
Total Other Financing Sources (Uses)1,315,900 231,800 373,945 - - 1,921,645
Net Change in Fund Balances 4,489 18,761 (19) 36 (3,505) 19,762
Fund Balances - Beginning - 14,832 19 1,633 3,753 20,237
Fund Balances - Ending 4,489$ 33,593$ -$ 1,669$ 248$ 39,999$
City of Auburn, Washington
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE
NON-MAJOR DEBT SERVICE FUNDS
For the Year Ended December 31, 2019
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133
NON-MAJOR GOVERNMENTAL FUNDS
CAPITAL PROJECT FUNDS
Capital projects funds account for the City of Auburn's financial resources used for the acquisition or
construction of major non-proprietary capital facilities. Auburn has two non-major capital project funds.
The Municipal Park Construction Fund
Accounts for park related construction activity and includes funding from a portion of field rental
income and adult athletic team fees.
The Local Revitalization Fund
Accounts for the City Hall Plaza and the Downtown Promenade project.
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134
Municipal Nonmajor
Park Local Capital Project
Construction Revitalization Funds
ASSETS:
Cash and Cash Equivalents 488,188$ 380,696$ 868,884$
Due From Other Governmental Units 261,906 - 261,906
Total Assets 750,094 380,696 1,130,790
LIABILITIES AND FUND BALANCES:
Liabilities:
Current Payables 84,678 957 85,635
Total Liabilities 84,678 957 85,635
Fund Balances:
Restricted 665,416 - 665,416
Assigned - 379,739 379,739
Total Fund Balances 665,416 379,739 1,045,155
Total Liabilities and Fund Balances 750,094$ 380,696$ 1,130,790$
City of Auburn, Washington
COMBINING BALANCE SHEET
CAPITAL PROJECT FUNDS
December 31, 2019
City of Auburn: 2019 CAFR Fund Financial Statements and Schedules
135
Municipal Nonmajor
Park Local Capital Project
Construction Revitalization Funds
REVENUES:
Taxes:
Property 150,803$ -$ 150,803$
Intergovernmental 547,505 - 547,505
Charges for Services 6,367 - 6,367
Investment Earnings 10,515 8,489 19,004
Miscellaneous 66,911 - 66,911
Total Revenues 782,101 8,489 790,590
EXPENDITURES:
Capital Outlay 1,327,687 10,738 1,338,425
Total Expenditures 1,327,687 10,738 1,338,425
Excess (Deficiency) of Revenues
Over (Under) Expenditures (545,586) (2,249) (547,835)
OTHER FINANCING SOURCES (USES):
Insurance Recoveries - Capital Assets 49,259 - 49,259
Transfers In (Note 5)545,840 - 545,840
Total Other Financing Sources (Uses)595,099 - 595,099
Net Change in Fund Balances 49,513 (2,249) 47,264
Fund Balances - Beginning 615,903 381,988 997,891
Fund Balances - Ending 665,416$ 379,739$ 1,045,155$
City of Auburn, Washington
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
CAPITAL PROJECT FUNDS
For the Year Ended December 31, 2019
City of Auburn: 2019 CAFR Fund Financial Statements and Schedules
136
City of Auburn: 2019 CAFR Fund Financial Statements and Schedules
137
NON-MAJOR GOVERNMENTAL FUNDS
PERMANENT FUNDS
Permanent funds are used to report resources that are legally restricted to the extent that only
earnings, and not principal, may be used for purposes that support City programs that are for the benefit
of the City or its citizens. Auburn has one permanent fund.
The Cemetery Endowed Care Fund
Accounts for non-expendable investments held by the City's trustee. The interest income from
investments is available for use by the cemetery fund for capital enhancement and maintenance.
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138
Cemetery
Endowed
Care
ASSETS:
Cash and Cash Equivalents
Non-Expendable Trust 475,226$
Investments 1,513,820
Total Assets 1,989,046
LIABILITIES AND FUND BALANCES:
FUND BALANCES:
Nonspendable 1,826,063
Assigned 162,983
Total Fund Balances 1,989,046
Total Liabilities and Fund Balances 1,989,046$
City of Auburn, Washington
BALANCE SHEET
PERMANENT FUND
December 31, 2019
City of Auburn: 2019 CAFR Fund Financial Statements and Schedules
139
Cemetery
Endowed
Care
REVENUES:
Increase to Endowment from Lot Sales 50,610$
Investment Earnings 41,607
Total Revenues 92,217
EXPENDITURES:
Excess (Deficiency) of Revenues
Over (Under) Expenditures 92,217
Net Change in Fund Balance 92,217
Fund Balance - Beginning 1,896,829
Fund Balance - Ending 1,989,046$
For the Year Ended December 31, 2019
City of Auburn, Washington
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
PERMANENT FUND
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141
NON-MAJOR PROPRIETARY FUNDS
ENTERPRISE FUNDS
The City's enterprise funds are used to account for operations that are financed and operated in a
manner similar to private business operations. The goods and services these funds provide to the
general public are primarily financed by service charges. Enterprise funds are self-supporting and use
the accrual method of accounting. Auburn has two non-major enterprise funds.
The Airport Fund
Provides accounting of the activities of the Auburn Municipal Airport. Sources of income for the fund
are leases, rentals, fuel charges, investment interest, and grant funding as available.
The Cemetery Fund
Accounts for Mountain View Cemetery's operations.
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142
Total
Nonmajor
Enterprise
Airport Cemetery Funds
ASSETS:
Current Assets:
Cash and Cash Equivalents 1,041,451$ 1,122,876$ 2,164,327$
Restricted Cash:
Customer Deposits 116,620 - 116,620
Customer Accounts 12,509 - 12,509
Due From Other Governmental Units 46,809 - 46,809
Inventories 34,274 7,332 41,606
Total Current Assets 1,251,663 1,130,208 2,381,871
Noncurrent Assets:
Capital Assets:
Land 3,670,478 342,836 4,013,314
Buildings and Equipments 3,050,802 1,025,260 4,076,062
Improvements Other Than Buildings 9,986,836 1,175,259 11,162,095
Construction in Progress 687,785 9,808 697,593
Less: Accumulated Depreciation (8,454,913) (1,623,148) (10,078,061)
Total Capital Assets (Net of A/D)8,940,988 930,015 9,871,003
Total Noncurrent Assets 8,940,988 930,015 9,871,003
Total Assets 10,192,651 2,060,223 12,252,874
DEFERRED OUTFLOWS OF RESOURCES:
Deferred Outflow Related to Pensions 6,189 43,607 49,796
6,189 43,607 49,796
LIABILITIES:
Current Liabilities:
Current Payables 63,682 49,180 112,862
Interfund Payables 11,627 - 11,627
Employee Leave Benefits - Current 6,682 11,904 18,586
Customer Deposits 116,620 - 116,620
Total Current Liabilities 198,611 61,084 259,695
Noncurrent Liabilities:
Employee Leave Benefits 1,776 3,164 4,940
Net Pension Liability (11,668) 14,378 2,710
Total Noncurrent Liabilities (9,892) 17,542 7,650
Total Liabilities 188,719 78,626 267,345
DEFERRED INFLOWS OF RESOURCES:
Deferred Inflow Related to Pensions 5,069 84,788 89,857
NET POSITION:
Net Investment in Capital Assets 8,940,988 930,015 9,871,003
Unrestricted 1,064,064 1,010,401 2,074,465
Total Net Position 10,005,052$ 1,940,416$ 11,945,468$
City of Auburn, Washington
COMBINING STATEMENT OF NET POSITION
NON-MAJOR ENTERPRISE FUNDS
December 31, 2019
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143
Total
Nonmajor
Enterprise
Airport Cemetery Funds
OPERATING REVENUES:
Charges for Services 492,228$ 1,351,463$ 1,843,691$
Other Operating Revenue 896,411 - 896,411
Total Operating Revenues 1,388,639 1,351,463 2,740,102
OPERATING EXPENSES:
Operations & Maintenance 815,654 846,694 1,662,348
Administration 139,901 335,218 475,119
Depreciation/Amortization 424,882 33,009 457,891
Other Operating Expenses 2,342 15,707 18,049
Total Operating Expenses 1,382,779 1,230,628 2,613,407
Operating Income (Loss)5,860 120,835 126,695
NON-OPERATING REVENUE (EXPENSE):
Interest Revenue 25,355 24,328 49,683
Other Non-Operating Revenues 295,349 214 295,563
Other Non-Operating Expenses (14,796) - (14,796)
Total Non-Operating Revenue (Expense)305,908 24,542 330,450
Income (Loss) Before Contributions & Transfers 311,768 145,377 457,145
Transfers In (Note 5)350,000 - 350,000
Transfers Out (Note 5)(423,270) - (423,270)
Change in Net Position 238,498 145,377 383,875
Net Position, January 1 9,766,554 1,795,039 11,561,593
Net Position, December 31 10,005,052$ 1,940,416$ 11,945,468$
City of Auburn, Washington
COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION
NON-MAJOR ENTERPRISE FUNDS
For the Year Ended December 31, 2019
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Page 1 of 2
Total
Non Major
Enterprise
Airport Cemetery Funds
CASH FLOWS FROM OPERATING ACTIVITIES:
Cash Received From Users 1,392,844$ 1,351,463$ 2,744,307$
Cash Paid to Suppliers for Goods & Services (668,047) (466,669) (1,134,716)
Cash Paid for Taxes (2,356) (15,707) (18,063)
Cash Paid to Employees (330,614) (761,160) (1,091,774)
Other Non-Operating Revenue 39,038 214 39,252
Net Cash Provided (Used) By Operating Activities 430,865 108,141 539,006
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:
Interfund Loan Payable (41,583) - (41,583)
Operating Grant Received 256,311 - 256,311
Transfers from Other Funds 350,000 - 350,000
Operating Transfers Out (423,270) - (423,270)
Net Cash Provided (Used) by Non-Capital Financing Activities 141,458 - 141,458
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES:
Purchase of Capital Assets (350,156) - (350,156)
Capital Grant 4,953 - 4,953
Premium & Bond Issuance Costs 10,918 - 10,918
Principal Payment on Debt (186,420) - (186,420)
Interest Payment on Debt (14,796) - (14,796)
Net Cash Provided (Used) for Capital and Related Financing Activities (535,501) - (535,501)
CASH FLOW FROM INVESTING ACTIVITIES:
Interest Received 25,355 24,328 49,683
Net Cash Provided (Used) in Investing Activities 25,355 24,328 49,683
Net Increase (Decrease) in Cash and Cash Equivalents 62,177 132,469 194,646
Cash and Cash Equivalents - Beginning of Year 1,095,894 990,407 2,086,301
Cash and Cash Equivalents - End of Year 1,158,071$ 1,122,876$ 2,280,947$
CASH AT END OF YEAR CONSISTS OF:
Cash and Cash Equivalents 1,041,451 1,122,876 2,164,327
Restricted Cash - Customer Deposits 116,620 - 116,620
Total Cash 1,158,071$ 1,122,876$ 2,280,947$
City of Auburn, Washington
COMBINING STATEMENT OF CASH FLOWS
NON-MAJOR ENTERPRISE FUNDS
For the Fiscal Year Ended December 31, 2019
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Page 2 of 2
Total
Non Major
Enterprise
Airport Cemetery Funds
RECONCILIATION OF NET OPERATING INCOME TO NEW CASH
PROVIDED BY OPERATING ACTIVITIES
Operating Income (Loss)5,860$ 120,835$ 126,695$
ADJUSTMENTS TO RECONCILE OPERATING INCOME TO
NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES:
Depreciation 424,882 33,009 457,891
Other Non-Operating Revenue 39,038 214 39,252
Asset (Increases) Decreases:
Accounts Receivable (12,079) - (12,079)
Inventory (34,274) 372 (33,902)
Liability Increases (Decreases):
Accounts & Vouchers Payable 1,253 8,152 9,405
Deposits Payable 16,284 - 16,284
Wages & Benefits Payable (18,557) (47,700) (66,257)
Compensated Absences Payable 8,458 (6,741) 1,717
Total Adjustments 425,005 (12,694) 412,311
Net Cash Provided (Used) by Operating Activities 430,865$ 108,141$ 539,006$
SCHEDULE OF NONCASH INVESTING, CAPITAL AND
FINANCING ACTIVITIES
Total Non Cash Investing, Capital and Financing Activities -$ -$ -$
City of Auburn, Washington
COMBINING STATEMENT OF CASH FLOWS
NON-MAJOR ENTERPRISE FUNDS
For the Fiscal Year Ended December 31, 2019
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146
City of Auburn: 2019 CAFR Fund Financial Statements and Schedules
147
NON-MAJOR PROPRIETARY FUNDS
INTERNAL SERVICE FUNDS
The City of Auburn's internal service funds are used to account for the financing of goods and services
provided by one department of operation to other departments on a cost reimbursement basis.
Internal service funds are self-supporting and use the accrual method of accounting. Auburn has five
internal service funds.
The Insurance Fund
Provides a source of funds to pay unemployment claims and property and casualty claims which fall
below deductible levels.
The Workers Comp Self Insurance Fund
Provides a source of funds to pay time loss and medical benefits for employees who are affected by
an occupational injury or illness.
The Facilities Funds
Accounts for the costs of maintaining various City facilities.
The Information Services Fund
Accounts for the costs of purchasing and maintaining the City’s various computer and
telecommunications systems.
The Equipment Rental Fund
Accounts for the costs of purchasing, maintaining, and operating Auburn's fleet of vehicles and
related equipment.
City of Auburn: 2019 CAFR Fund Financial Statements and Schedules
148
Workers Comp Information Equipment
Insurance Self Insurance Facilities Services Rental Total
ASSETS:
Current Assets:
Cash and Cash Equivalents 1,932,526$ 2,811,792$ 1,556,697$ 4,408,675$ 7,523,482$ 18,233,172$
Customer Accounts - - 73,304 - - 73,304
Due From Other Governmental Units - - 20,417 2,289 - 22,706
Inventories - - - - 298,604 298,604
Total Current Assets 1,932,526 2,811,792 1,650,418 4,410,964 7,822,086 18,627,786
Noncurrent Assets:
Capital Assets:
Buildings and Equipment - - - 8,579,217 18,216,523 26,795,740
Improvements Other than Buildings - - - 263,039 188,225 451,264
Construction in Progress - - - - 34,727 34,727
Less: Accumulated Depreciation - - - (7,652,026) (11,075,784) (18,727,810)
Total Capital Assets (Net of A/D)- - - 1,190,230 7,363,691 8,553,921
Total Noncurrent Assets - - - 1,190,230 7,363,691 8,553,921
Total Assets 1,932,526 2,811,792 1,650,418 5,601,194 15,185,777 27,181,707
DEFERRED OUTFLOWS OF RESOURCES:
Deferred Outflow Related to Pensions - 7,349 70,508 156,923 62,466 297,246
LIABILITIES:
Current Liabilities:
Current Payables 10,572 2,165 334,922 442,452 420,402 1,210,513
Claims Payable (Incurred but not reported)- 932,000 - - - 932,000
Employee Leave Benefits - Current - - 69,191 127,326 27,309 223,826
Other Liabilities Payable - - - - 25,610 25,610
Total Current Liabilities 10,572 934,165 404,113 569,778 473,321 2,391,949
Noncurrent Liabilities
Employee Leave Benefits - - 18,389 33,840 7,258 59,487
Net Pension Liability - 1,087 10,063 (108,846) 991,934 894,238
Total Noncurrent Liabilities - 1,087 28,452 (75,006) 999,192 953,725
Total Liabilities 10,572 935,252 432,565 494,772 1,472,513 3,345,674
DEFERRED INFLOWS OF RESOURCES:
Deferred Inflow Related to Pensions - 14,428 120,413 342,424 170,906 648,171
NET POSITION:
Net Investment in Capital Assets - - - 1,190,230 7,338,081 8,528,311
Unrestricted 1,921,954 1,869,461 1,167,948 3,730,691 6,266,743 14,956,797
Total Net Position 1,921,954$ 1,869,461$ 1,167,948$ 4,920,921$ 13,604,824$ 23,485,108$
City of Auburn, Washington
COMBINING STATEMENT OF NET POSITION
INTERNAL SERVICE FUNDS
December 31, 2019
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149
Workers Comp Information Equipment
Insurance Self Insurance Facilities Services Rental Total
OPERATING REVENUES:
Charges for Services -$ 1,082,117$ 3,215,657$ 5,935,453$ 3,800,182$ 14,033,409$
Other Operating Revenue - - 151,912 98,885 - 250,797
Total Operating Revenues - 1,082,117 3,367,569 6,034,338 3,800,182 14,284,206
OPERATING EXPENSES:
Operations & Maintenance - 297,142 3,035,336 6,055,321 1,737,776 11,125,575
Administration 39,950 115,797 - - 866,091 1,021,838
Depreciation/Amortization - - - 294,063 1,262,131 1,556,194
Total Operating Expenses 39,950 412,939 3,035,336 6,349,384 3,865,998 13,703,607
Operating Income (Loss)(39,950) 669,178 332,233 (315,046) (65,816) 580,599
NON-OPERATING REVENUE (EXPENSE):
Interest Revenue 29,378 54,612 42,736 96,077 165,167 387,970
Other Non-Operating Revenues - 1,353 - 1,837 161,642 164,832
Gain (Loss) on Sale of Capital Assets - - - - 30,738 30,738
Interest Expense - - - - (1,468) (1,468)
Total Non-Operating Revenue (Expense)29,378 55,965 42,736 97,914 356,079 582,072
Income (Loss) Before Contributions (10,572) 725,143 374,969 (217,132) 290,263 1,162,671
Transfers In (Note 5)- - 40,000 124,233 161,434 325,667
Transfers Out (Note 5)- - (732,926) (29,950) - (762,876)
Change in Net Position (10,572) 725,143 (317,957) (122,849) 451,697 725,462
Net Position, January 1 1,932,526 1,144,318 1,485,905 5,043,770 13,153,127 22,759,646
Total Net Position - Ending 1,921,954$ 1,869,461$ 1,167,948$ 4,920,921$ 13,604,824$ 23,485,108$
City of Auburn, Washington
COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION
INTERNAL SERVICE FUNDS
For the Year Ended December 31, 2019
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Page 1 of 2
Insurance
Workers Comp
Self Insurance Facilities
Information
Services
Equipment
Rental Total
CASH FLOWS FROM OPERATING ACTIVITIES:
Cash Received From Users -$ 1,082,117$ 3,434,571$ 6,034,338$ 3,800,182$ 14,351,208$
Cash Paid to Suppliers for Goods & Services (29,619) (386,687) (2,049,922) (3,145,832) (1,880,421) (7,492,481)
Cash Paid to Employees - (119,740) (1,073,899) (2,989,733) (998,284) (5,181,656)
Other Cash Received - - - 8,028 192,380 200,408
Net Cash Provided (Used) By Operating Activities (29,619) 575,690 310,750 (93,199) 1,113,857 1,877,479
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:
Operating Grant Received - - - - 20,000 20,000
Transfers In - - 40,000 124,233 161,434 325,667
Transfers Out - - (732,926) (29,950) - (762,876)
Net Cash Provided (Used) by Non-Capital Financing Activities - - (692,926) 94,283 181,434 (417,209)
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES:
Proceeds from Sale of Equipment - - - - 64,661 64,661
Purchase of Capital Assets - - - (146,506) (1,438,544) (1,585,050)
Proceeds from Insurance Settlement - 1,353 - - - 1,353
Interest Payment on Debt - - - - (1,468) (1,468)
Net Cash Provided (Used) for Capital and Related Financing Activities - 1,353 - (146,506) (1,375,351) (1,520,504)
CASH FLOW FROM INVESTING ACTIVITIES:
Interest Received 29,378 54,612 42,736 96,077 165,167 387,970
Net Cash Provided (Used) in Investing Activities 29,378 54,612 42,736 96,077 165,167 387,970
Net Increase (Decrease) in Cash and Cash Equivalents (241) 631,655 (339,440) (49,345) 85,107 327,736
Cash and Cash Equivalents - Beginning of Year 1,932,767 2,180,137 1,896,137 4,458,020 7,438,375 17,905,436
Cash and Cash Equivalents - End of Year 1,932,526$ 2,811,792$ 1,556,697$ 4,408,675$ 7,523,482$ 18,233,172$
CASH AT END OF YEAR CONSISTS OF:
Cash and Cash Equivalents 1,932,526 2,811,792 1,556,697 4,408,675 7,523,482 18,233,172
Total Cash 1,932,526$ 2,811,792$ 1,556,697$ 4,408,675$ 7,523,482$ 18,233,172$
City of Auburn, Washington
COMBINING STATEMENT OF CASH FLOWS
INTERNAL SERVICE FUNDS
For the Fiscal Year Ended December 31, 2019
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Page 2 of 2
Insurance
Workers Comp
Self Insurance Facilities
Information
Services
Equipment
Rental Total
RECONCILIATION OF NET OPERATING INCOME TO NEW CASH
PROVIDED BY OPERATING ACTIVITIES
Operating Income (Loss)(39,950)$ 669,178$ 332,233$ (315,046)$ (65,816)$ 580,599$
ADJUSTMENTS TO RECONCILE OPERATING INCOME TO
NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES:
Depreciation - - - 294,063 1,262,131 1,556,194
Other Non-Operating Revenues - - - - 192,380 192,380
Asset (Increases) Decreases:
Accounts Receivable - - 67,002 8,028 - 75,030
Inventory - - - - (61,398) (61,398)
Liability Increases (Decreases):
Accounts & Vouchers Payable 10,331 (76,920) 40,427 102,166 (146,350) (70,346)
Wages & Benefits Payable - (10,848) (67,640) (199,876) (59,326) (337,690)
Compensated Absences Payable - (5,720) (61,272) 17,466 (7,764) (57,290)
Total Adjustments 10,331 (93,488) (21,483) 221,847 1,179,673 1,296,880
Net Cash Provided (Used) by Operating Activities (29,619)$ 575,690$ 310,750$ (93,199)$ 1,113,857$ 1,877,479$
SCHEDULE OF NONCASH INVESTING, CAPITAL AND
FINANCING ACTIVITIES
Total Non Cash Investing, Capital and Financing Activities -$ -$ -$ -$ -$ -$
City of Auburn, Washington
COMBINING STATEMENT OF CASH FLOWS
INTERNAL SERVICE FUNDS
For the Fiscal Year Ended December 31, 2019
City of Auburn: 2019 CAFR Fund Financial Statements and Schedules
152
City of Auburn: 2019 CAFR Fund Financial Statements and Schedules
153
FIDUCIARY FUNDS
Fiduciary funds account for monies over which the city is strictly a short-term custodian. Fiduciary funds
typically involve only the receipt, temporary investment, and remittance of fiduciary resources to
individuals, private organizations, or other governments.
City of Auburn: 2019 CAFR Fund Financial Statements and Schedules
154
Balance Balance
1/1/2019 Additions Deductions 12/31/2019
ASSETS:
Cash and Cash Equivalents 543,157$ 10,575,074$ 9,789,185$ 1,329,046$
Other Current Assets 6,181 637,234 629,250 14,165
Total Assets 549,338$ 11,212,308$ 10,418,435$ 1,343,211$
LIABILITIES:
Current Payables 500,328 16,073,661 15,677,450 896,539
Due to Other Government Units 49,010 2,361,736 1,964,074 446,672
Total Liabilities 549,338$ 18,435,397$ 17,641,524$ 1,343,211$
City of Auburn, Washington
STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
FIDUCIARY FUND
For the Fiscal Year Ended December 31, 2019
City of Auburn: 2019 CAFR Statistical Section
155
City of Auburn
STATISTICAL SECTION
December 31, 2019
Financial Trends Information
Financial trends schedules are intended to provide users with information to assist them in understanding and assessing how
the City’s financial position has changed over time.
Schedule 1 Net position by components .............................................................................................................. 156
Schedule 2 Changes in net position ....................................................................................................................... 157
Schedule 3 Fund balances, government funds..................................................................................................... 158
Schedule 4 Changes in fund balances, government funds .................................................................................. 159
Schedule 5 Tax revenues by source, government funds ..................................................................................... 160
Revenue Capacity Information
The objective of providing revenue capacity information is to help users understand and assess the factors affecting the City’s
ability to generate its most significant local source revenues.
Schedule 6 Assessed value by type ........................................................................................................................ 161
Schedule 7 Property tax data .................................................................................................................................162
Schedule 8 Property tax levies and collections .................................................................................................... 164
Schedule 9 Principal taxpayers-property taxes-sales taxes ................................................................................. 165
Schedule 10 Retail tax collections by sector .......................................................................................................... 166
Debt Capacity Information
Debt capacity information is intended to assist users to understand and assess the City’s current levels of outstanding debt
and ability to issue additional debt in the future.
Schedule 11 Ratios of outstanding debt by type ................................................................................................... 167
Schedule 12 Computation of legal debt margin ..................................................................................................... 168
Schedule 13 Legal debt margin ratios ..................................................................................................................... 168
Schedule 14 Computation of net direct and estimated overlapping debt............................................................ 169
Schedule 15 Ratios of net general bonded debt to assessed value .......................................................................170
Schedule 16 Pledged revenue bond coverages ...................................................................................................... 171
Demographic and Economic Information
These schedules offer demographic and economic information to assist users in understanding certain aspects of the
environment within which the City operates and to provide information that facilitates comparisons of financial statement
information over time and across governmental units.
Schedule 17 Population, income and housing trends ............................................................................................. 172
Schedule 18 Major employers .................................................................................................................................. 173
Operating Information
These schedules contain service and infrastructure data to help users understand how the information in the City’s financial
report relates to the services the City provides and the activities it performs.
Schedule 19 Staffing levels by department ............................................................................................................. 174
Schedule 20 Operating indicators by department .................................................................................................. 175
Schedule 21 Capital indicators by department ....................................................................................................... 176
Schedule 22 Utility customers by customer class .................................................................................................. 176
City of Auburn: 2019 CAFR Statistical Section
156
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Governmental activities:
Net Investment in Capital Assets 320,506,701$ 340,941,112$ 354,899,294$ 346,195,793$ 348,080,505$ 361,094,242$ 367,128,894$ 373,368,906$ 375,208,981$ 372,887,236$
Restricted 15,180,467 14,230,963 13,164,116 15,019,909 16,404,328 19,470,880 26,745,270 29,854,240 30,001,950 33,911,413
Unrestricted 46,734,364 45,250,090 43,245,050 47,426,352 51,898,566 40,928,090 42,900,814 42,803,759 42,377,297 59,840,168
Total governmental activities net position 382,421,532 400,422,165 411,308,460 408,642,054 416,383,399 421,493,212 436,774,978 446,026,906 447,588,227 466,638,817
Business-type activities:
Net Investment in Capital Assets 152,343,987 166,289,542 173,709,864 165,619,867 169,098,916 187,604,782 195,490,061 205,677,614 208,136,620 212,172,136
Restricted 4,107,128 4,153,982 4,719,058 16,839,589 14,115,610 4,764,340 3,110,414 1,856,970 1,924,566 2,001,709
Unrestricted 28,642,334 30,523,974 30,439,381 32,880,216 37,724,080 32,974,662 40,797,698 41,627,494 49,088,740 56,928,121
Total business-type activities net position 185,093,449 200,967,498 208,868,303 215,339,672 220,938,606 225,343,784 239,398,173 249,162,078 259,149,926 271,101,966
Primary government:
Net Investment in Capital Assets 472,850,688 507,230,654 528,609,158 511,815,660 517,179,421 548,699,024 562,618,955 579,046,520 583,345,601 585,059,372
Restricted 19,287,595 18,384,945 17,883,174 31,859,498 30,519,938 24,235,220 29,855,684 31,711,210 31,926,516 35,913,122
Unrestricted 75,376,698 75,774,064 73,684,431 80,306,568 89,622,646 73,902,752 83,698,512 84,431,253 91,466,037 116,768,289
Total primary government net position 567,514,981$ 601,389,663$ 620,176,763$ 623,981,726$ 637,322,005$ 646,836,996$ 676,173,151$ 695,188,984$ 706,738,153$ 737,740,783$
Source: City of Auburn, Finance Department
City of Auburn, Washington
SCHEDULE 1
NET POSITION BY COMPONENTS
Last Ten Fiscal Years
(Accrual Basis of Accounting)
City of Auburn: 2019 CAFR Statistical Section
157
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Expenses
Governmental activities:
General government 7,934,948$ 8,581,829$ 9,441,887$ 7,508,112$ 8,363,427$ 9,187,539$ 9,557,602$ 10,384,647$ 10,191,329$ 13,292,724$
Public safety 25,890,627 27,320,805 27,339,301 27,423,015 27,144,153 29,883,217 32,117,837 32,746,406 30,337,791 24,016,496
Transportation 11,989,752 12,123,615 15,736,610 14,861,834 16,150,877 17,324,036 16,602,993 17,904,352 17,620,176 17,709,231
Physical environment 2,498,539 2,327,911 2,535,877 2,699,301 2,976,461 2,924,046 3,266,375 3,217,885 3,794,576 3,981,499
Culture and recreation 7,307,270 7,606,584 8,310,210 9,184,289 11,094,524 12,096,651 12,811,186 13,539,098 13,665,612 13,400,311
Economic environment 2,499,631 3,135,984 2,914,335 2,346,025 2,751,869 3,044,354 3,224,984 3,859,863 4,140,104 4,457,626
Health and human services 578,247 619,172 633,175 510,285 622,374 925,299 573,115 674,270 787,535 619,247
Interest on long-term debt 1,809,322 1,685,055 2,336,960 3,795,024 3,615,211 1,986,853 1,709,647 1,555,803 1,502,236 1,466,217
Total governmental activities expenses 60,508,335 63,400,955 69,248,355 68,327,885 72,718,896 77,371,995 79,863,739 83,882,324 82,039,359 78,943,351
Business-type activities:
Water 10,042,879 8,961,736 9,655,724 11,893,094 11,992,944 13,691,529 13,107,629 12,408,008 12,499,974 13,023,888
Sewer 17,794,958 18,852,402 19,680,724 21,584,215 23,026,216 23,992,161 25,685,370 25,360,718 26,213,221 26,907,482
Storm drainage 6,994,381 6,752,021 8,025,729 7,726,467 7,668,072 8,308,559 8,814,542 8,979,969 9,374,373 9,126,096
Solid waste 9,894,429 9,957,943 11,305,322 12,535,078 12,760,313 12,907,832 13,460,155 14,539,703 15,311,654 15,682,121
Golf course 1,844,108 1,903,836 1,912,174 1,933,597 - - - - - -
Non-major business-type activities 1,781,204 2,010,776 1,954,104 1,857,252 1,924,874 2,062,695 2,150,693 2,106,557 2,186,842 2,628,203
Total business-type activities expenses 48,351,960 48,438,714 52,533,777 57,529,703 57,372,419 60,962,776 63,218,389 63,394,955 65,586,064 67,367,790
Total primary government expenses 108,860,294$ 111,839,669$ 121,782,132$ 125,857,588$ 130,091,315$ 138,334,771$ 143,082,128$ 147,277,279$ 147,625,423$ 146,311,141$
Program revenues
Governmental activities:
Charges for services
General Government 1,168,574$ 1,010,911$ 897,521$ 893,326$ 1,160,198$ 1,243,263$ 939,184$ 1,241,905$ 1,462,867$ 3,758,197$
Public Safety 2,938,942 3,867,013 1,016,191 2,103,823 2,273,903 1,993,117 1,468,536 2,523,667 2,821,516 3,240,007
Transportation 960,532 1,042,147 1,819,851 1,967,778 1,660,270 1,446,026 3,265,147 2,118,980 886,760 3,207,197
Physical Environment 86,306 103,590 36,766 398,564 276,632 384,485 260,555 431,580 611,342 503,798
Culture and Recreation 962,558 1,182,688 880,380 873,970 2,876,185 3,052,599 2,508,166 3,073,262 3,355,206 3,183,370
Economic Environment 1,732,397 2,294,916 3,266,188 3,586,844 3,087,853 2,989,579 3,896,453 2,400,940 1,913,090 2,729,376
Health and human services 449 7,528 - - - - - - - -
Total charges for services 7,849,758 9,508,793 7,916,897 9,824,305 11,335,041 11,109,069 12,338,041 11,790,334 11,050,781 16,621,946
Operating grants and contributions 3,022,835 1,724,711 3,560,707 1,967,252 1,333,652 4,234,309 2,767,931 2,257,646 2,831,794 3,394,916
Capital grants and contributions 10,702,132 19,730,140 17,835,784 5,955,062 6,001,230 19,526,548 13,275,208 13,229,502 9,065,857 6,461,827
Total governmental activities program revenues 21,574,725 30,963,644 29,313,388 17,746,619 18,669,923 34,869,926 28,381,180 27,277,482 22,948,432 26,478,689
Business-type activities:
Charges for services 43,461,742 45,045,488 50,710,688 57,533,735 60,332,817 63,391,139 65,733,943 68,220,200 69,723,671 70,315,493
Operating grants and contributions 70,841 116,735 97,052 90,361 111,025 106,286 106,286 106,286 106,286 106,286
Capital grants and contributions 7,391,111 15,981,735 7,248,835 5,483,344 5,070,810 5,821,857 10,574,852 4,363,568 4,566,838 6,686,288
Total business-type activities program revenue 50,923,694 61,143,958 58,056,575 63,107,440 65,514,652 69,319,282 76,415,081 72,690,054 74,396,795 77,108,067
Total primary government program revenues 72,498,419 92,107,602 87,369,963 80,854,059 84,184,575 104,189,208 104,796,261 99,967,536 97,345,227 103,586,756
Net (expense)/revenue
Governmental activities (38,933,610) (32,437,311) (39,934,967) (50,581,266) (54,048,973) (42,502,069) (51,482,559) (56,604,841) (59,090,927) (52,464,662)
Business-type activities 2,571,734 12,705,244 5,522,798 5,577,737 8,142,233 8,356,506 13,196,692 9,295,099 8,810,731 9,740,277
Total primary government net expense (36,361,876)$ (19,732,067)$ (34,412,169)$ (45,003,529)$ (45,906,740)$ (34,145,563)$ (38,285,867)$ (47,309,742)$ (50,280,196)$ (42,724,385)$
General revenues and other changes in net position
Governmental activities:
Taxes:
Property taxes 14,766,470$ 15,204,611$ 14,970,136$ 14,490,790$ 15,867,838$ 17,271,705$ 18,102,286$ 20,967,953$ 21,546,734$ 22,075,276$
Retail sales and use tax 15,657,081 16,213,244 16,679,278 18,335,157 19,744,684 21,125,730 21,475,335 22,333,454 21,996,115 22,212,601
Interfund utility taxes 2,788,083 2,948,297 3,281,816 3,892,250 4,068,667 4,260,831 4,624,951 4,540,265 4,552,505 4,760,229
Utility taxes 8,886,964 9,049,689 8,856,498 9,156,636 9,040,015 8,838,179 8,917,401 10,391,462 9,841,620 9,278,114
Excise taxes 1,389,030 1,859,738 2,141,620 2,555,850 2,888,797 4,999,517 5,057,013 4,141,146 4,393,134 5,650,339
Other taxes 4,622,138 4,644,909 4,679,333 4,429,090 4,601,925 4,722,482 5,160,215 5,253,964 5,213,217 4,751,163
Investment earnings 379,316 224,593 178,618 121,687 105,117 118,399 332,520 787,786 1,657,481 2,134,741
Miscellaneous 214,190 775,969 547,391 (4,625,627) 178,482 194,600 157,874 204,306 428,580 258,502
Transfers 1,463,444 (483,107) (513,428) (218,230) 5,294,793 (462,955) 424,173 454,436 414,975 394,287
Total governmental activities 50,166,715 50,437,943 50,821,262 48,137,603 61,790,318 61,068,488 64,251,768 69,074,772 70,044,361 71,515,252
Business-type activities:
Investment earnings 158,211 101,694 82,903 68,400 51,261 70,560 196,595 479,132 989,564 1,387,405
Miscellaneous 1,588,068 2,584,004 1,781,676 763,717 2,700,233 1,881,835 1,085,275 444,110 602,528 1,218,645
Transfers (1,463,444) 483,107 513,428 218,230 (5,294,793) 462,955 (424,173) (454,436) (414,975) (394,287)
Total business-type activities:282,835 3,168,805 2,378,007 1,050,347 (2,543,299) 2,415,350 857,697 468,806 1,177,117 2,211,763
Total primary government 50,449,550$ 53,606,748$ 53,199,269$ 49,187,950$ 59,247,019$ 63,483,838$ 65,109,465$ 69,543,578$ 71,221,478$ 73,727,015$
Change in net position Before Change in Accounting Principle
Governmental activities 11,233,105 18,000,632 10,886,295 (2,443,663) 7,741,345 18,566,419 12,769,209 12,469,931 10,953,434 19,050,590
Business-type activities 2,854,569 15,874,049 7,900,805 6,628,084 5,598,934 10,771,856 14,054,389 9,763,905 9,987,848 11,952,040
Total primary government 14,087,674$ 33,874,681$ 18,787,100$ 4,184,421$ 13,340,279$ 29,338,275$ 26,823,598$ 22,233,836$ 20,941,282$ 31,002,630$
Change in Accounting Principle
Governmental activities - - - (222,743) - (13,456,606) 2,512,557 (3,218,004) (9,389,375) -
Business-type activities - - - (156,715) - (6,366,678) - - - -
Total primary government -$ -$ -$ (379,458)$ -$ (19,823,284)$ 2,512,557$ (3,218,004)$ (9,389,375)$ -$
Change in net position After Change in Accounting Principle
Governmental activities 11,233,105 18,000,632 10,886,295 (2,666,406) 7,741,345 5,109,813 15,281,766 9,251,927 1,564,059 19,050,590
Business-type activities 2,854,569 15,874,049 7,900,805 6,471,369 5,598,934 4,405,178 14,054,389 9,763,905 9,987,848 11,952,040
Total primary government 14,087,674$ 33,874,681$ 18,787,100$ 3,804,963$ 13,340,279$ 9,514,991$ 29,336,155$ 19,015,832$ 11,551,907$ 31,002,630$
Source: City of Auburn, Finance Department
City of Auburn, Washington
SCHEDULE 2
CHANGES IN NET POSITION
Last Ten Fiscal Years
(Accrual Basis of Accounting)
City of Auburn: 2019 CAFR Statistical Section
158
2010 2011 (1)2012 2013 2014 2015 2016 2017 2018 2019
General Fund
Unreserved 15,382,354$ -$ -$ -$ -$ -$ -$ -$ -$ -$
Nonspendable - - 370,400 127 127 127 - 30,453 38,179 36,097
Restricted - - - - - - - - - -
Committed - - - - - - - - - -
Assigned - 7,082,130 5,935,567 5,892,611 4,045,598 7,284,159 7,160,098 9,315,528 9,375,470 17,118,273
Unassigned - 14,193,365 17,395,933 17,751,778 20,914,093 20,267,776 24,991,081 25,414,801 24,627,984 19,068,746
Total General Fund 15,382,354 21,275,495 23,701,900 23,644,516 24,959,818 27,552,062 32,151,179 34,760,782 34,041,633 36,223,116
All other governmental funds
Reserved 1,592,378 - - - - - - - - -
Unreserved, Reported In:- - - -
Special Revenue Funds 15,486,918 - - - - - - - - -
Capital Projects Funds 12,589,604 - - - - - - - - -
Permanent Funds 132,717 - - - - - - - - -
Total Unreserved 28,209,239 - - - - -
Nonspendable 1,453,540 1,475,580 1,536,316 1,574,148 1,585,707 1,666,043 1,717,134 1,775,453 1,826,063
Restricted 12,781,743 11,688,536 13,483,593 14,830,180 17,885,173 25,079,227 28,137,106 28,226,498 32,085,350
Committed 3,134,449 3,258,257 3,242,662 5,066,181 3,658,719 5,421,640 3,223,108 3,079,656 3,172,152
Assigned 3,120,372 2,388,684 4,976,833 4,725,119 4,755,182 1,226,315 1,221,511 2,827,045 2,239,557
Unassigned - - - - - - - - -
Total All Other Governmental Funds 29,801,617$ -$ -$ 23,239,404$ 26,195,628$ 27,884,781$ 33,393,225$ 34,298,859$ 35,908,652$ 39,323,122$
(1)GASB Statement No. 54 was implemented in FY 2011. See Note 1E of the Notes to the Basic Financial Statements.
Source: City of Auburn, Finance Department
City of Auburn, Washington
SCHEDULE 3
FUND BALANCES, GOVERNMENT FUNDS
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
City of Auburn: 2019 CAFR Statistical Section
159
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Revenues
Taxes 43,069,695$ 44,812,975$ 46,003,582$ 48,545,041$ 51,718,489$ 56,632,337$ 58,279,984$ 62,425,246$ 62,430,346$ 64,032,701$
Licenses and permits 1,311,916 1,769,516 2,344,643 3,041,948 2,400,662 2,074,432 3,005,125 1,906,796 1,853,554 2,825,404
Intergovernmental 9,656,529 16,174,149 20,045,299 11,854,984 9,379,699 13,620,446 12,714,010 16,187,560 12,234,229 11,137,941
Charges for services 3,073,168 2,938,815 4,006,762 3,891,776 5,717,712 7,321,295 11,563,678 7,117,774 6,471,503 10,467,203
Fines and forfeits 2,472,411 1,940,326 1,592,957 1,441,603 1,258,408 938,775 905,921 882,254 920,187 914,240
Special assessments 43,502 32,972 39,115 40,772 472,800 7,494 4,111 3,835 2,210 2,807
Investment earnings 386,890 237,056 200,826 144,151 135,709 117,942 279,058 672,713 1,308,888 1,767,742
Miscellaneous 3,023,589 2,322,580 871,191 621,673 1,691,274 1,890,419 1,854,450 1,966,333 1,600,279 2,406,291
Total revenues 63,037,699 70,228,389 75,104,375 69,581,948 72,774,753 82,603,140 88,606,337 91,162,511 86,821,196 93,554,329
Expenditures
General government 7,770,957 8,310,037 8,761,452 7,300,667 7,712,018 8,661,592 8,936,366 9,755,757 9,804,631 12,688,544
Public safety 24,597,986 27,399,406 24,039,435 27,146,590 27,264,294 29,164,772 30,809,069 32,084,376 34,226,582 36,322,025
Transportation 10,054,434 16,059,156 20,766,134 15,119,530 8,979,583 16,323,425 12,607,616 20,652,538 15,512,706 11,641,856
Physical environment 2,480,641 2,290,328 2,526,526 2,855,908 3,086,738 2,991,145 3,309,993 3,359,548 4,128,266 4,372,251
Economic environment 2,597,849 3,138,590 2,876,558 2,692,389 2,783,898 3,066,674 3,324,309 3,880,025 4,314,648 4,699,552
Health and human services 568,911 616,717 616,583 631,997 626,681 925,299 573,115 674,270 787,535 619,247
Culture and recreation 6,663,881 6,918,623 7,228,345 7,925,325 9,759,110 10,700,680 11,480,488 11,943,070 12,450,884 12,437,720
Capital outlay (1)8,486,382 8,597,944 4,007,018 2,746,599 3,394,886 3,580,304 6,784,343 2,096,281 2,145,994 3,270,129
Debt service:
Principal 26,683,671 1,208,512 1,219,137 2,238,181 2,704,468 1,713,940 1,737,569 1,635,126 1,676,777 1,437,533
Interest / other 1,775,746 1,761,334 2,245,858 2,709,768 2,892,281 1,801,109 1,632,786 1,590,525 1,537,504 1,478,169
Total expenditures 91,680,457 76,300,647 74,287,046 71,366,954 69,203,957 78,928,940 81,195,654 87,671,516 86,585,527 88,967,026
Excess of revenues
over (under) expenditures (28,642,758) (6,072,258) 817,329 (1,785,006) 3,570,796 3,674,200 7,410,683 3,490,995 235,669 4,587,303
Other financing sources (uses)
Transfers in 9,442,727 7,410,926 6,643,116 4,776,100 5,309,769 7,100,830 11,121,265 7,050,817 8,205,317 6,477,764
Transfers out (7,745,568) (6,242,333) (7,005,097) (4,450,925) (5,003,448) (6,668,626) (11,182,611) (7,163,278) (7,838,860) (5,646,268)
Capital leases - - - - - - - - - -
Insurance recoveries 200,642 154,200 291,210 192,898 136,585 153,041 83,737 134,003 288,518 177,154
Issuance of debt 31,172,273 - - 3,044,491 240,366 - 3,128,732 - - -
Issuance of refunding bond 2,150,000 - - - - - 38,198 - - -
Debt Premium 305,844 - - - - - - - - -
Payment to escrow agent - refunded bon (2,235,000) - - - - - (3,005,000) - - -
Sales of capital assets - 1,331,092 800 2,593,405 17,458 21,952 - 2,700 - -
Total other financing sources (uses)33,290,918 2,653,885 (69,971) 6,155,969 700,730 607,197 184,321 24,242 654,975 1,008,650
Net change in fund balances 4,648,159$ (3,418,373)$ 747,358$ 4,370,963$ 4,271,526$ 4,281,397$ 7,595,004$ 3,515,237$ 890,644$ 5,595,953$
Debt service as a percentage of noncapital 37.50%5.44%6.64%8.71%10.68%5.50%5.14%4.66%4.38%3.72%
expenditures
(1)Capital outlay reported in governmental funds for 2019 are $3,270,129 plus $7,416,782 which is reported for each functional
activity with the other funds results in total capital outlay of $10,686,911 as reported on the Reconciliation of the
Statement of Revenues, Expenditures, and Changes in Fund Balances of Government Funds to the Statement of Activities.
Source: City of Auburn, Finance Department
City of Auburn, Washington
SCHEDULE 4
CHANGES IN FUND BALANCES, GOVERNMENT FUNDS
Last Ten Fiscal Years
(Modified Accrual Basisi of Accouting)
City of Auburn: 2019 CAFR Statistical Section
160
Fiscal Sales Interfund
Year Property & Use Utility Utility Excise Other Total
2010 14,283,303 15,657,081 2,788,083 8,886,964 1,389,030 65,234 43,069,695
2011 14,683,329 16,213,244 2,948,297 9,049,689 1,859,738 58,678 44,812,975
2012 14,987,636 16,679,278 3,281,816 8,856,498 2,141,620 56,734 46,003,582
2013 14,535,673 18,335,157 3,892,250 9,156,636 2,555,850 69,475 48,545,041
2014 15,933,338 19,744,684 4,068,667 9,040,015 2,888,797 42,988 51,718,489
2015 17,337,108 21,125,730 4,260,831 8,838,179 4,999,517 70,972 56,632,337
2016 18,067,324 21,475,335 4,624,951 8,917,401 5,057,013 137,960 58,279,984
2017 20,976,384 22,333,454 4,540,265 10,391,462 4,141,146 42,535 62,425,246
2018 21,561,924 21,996,115 4,552,505 9,841,620 4,393,134 85,048 62,430,346
2019 22,057,841 22,212,601 4,760,229 9,278,114 5,650,339 73,577 64,032,701
Change
2010-2019 54.4%41.9%70.7%4.4%306.8%12.8%48.7%
Source: City of Auburn, Finance Department
TAX REVENUES BY SOURCE, GOVERNMENT FUNDS
Last Ten Fiscal Years
SCHEDULE 5
City of Auburn, Washington
$0
$10
$20
$30
$40
$50
$60
$70
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019MillionsFigure 5: Tax Revenues by Source
2010-2019
Excise & Other
Utility
Interfund Utility
Sales & Use
Property
City of Auburn: 2019 CAFR Statistical Section
161
State Total Total
Fiscal Property Personal Land and Assessed Direct
Year and Other Property Building Value Rate
2010 114,661 715,534 6,935,683 7,765,878 1.82
2011 126,415 726,944 6,711,148 7,564,507 1.93
2012 124,204 709,024 6,392,321 7,225,550 2.08
2013 124,230 745,891 6,098,598 6,968,719 2.10
2014 132,854 880,015 6,409,300 7,422,169 2.17
2015 146,941 911,493 7,308,219 8,366,653 2.08
2016 156,673 958,859 7,851,588 8,967,119 2.05
2017 171,829 957,161 8,592,887 9,721,877 2.20
2018 169,543 918,637 9,611,541 10,699,721 2.03
2019 171,044 733,264 10,585,207 11,489,515 1.92
Source: King County Dept of Assessments & Pierce County Assessor-Treasurer
(Amounts Expressed in Thousands)
City of Auburn, Washington
SCHEDULE 6
ASSESSED VALUE BY TYPE
Last Ten Fiscal Years
$0
$2
$4
$6
$8
$10
$12
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019MillionsFigure 6: Assessed Value by Type
2010 -2019
State Property
Personal
Property
Land and
Buildings
City of Auburn: 2019 CAFR Statistical Section
162
Page 1 of 2
Item 2010 2011 2012 2013
Assessed and estimated actual values (1)
Estimated and actual value (in thousands)7,765,878$ 7,564,507$ 7,225,550$ 6,968,719$
Assessed value (in thousands)7,765,878 7,564,507 7,225,550 6,968,719
Ratio of assessed to actual 100%100%100%100%
Property tax rates (1)
Direct regular and special
General fund 1.82336$ 1.93458$ 2.07527$ 2.10000$
Debt service funds - - - -
Subtotal 1.82336 1.93458 2.07527 2.10000
Overlapping regular and special (1)
Auburn School District 5.09382$ 5.99562$ 6.14004$ 6.62190$
King County 1.28499 1.33816 1.41588 1.54051
State of Washington 2.22253 2.27990 2.42266 2.56720
Port of Seattle 0.21597 0.22366 0.22982 0.23324
Sound Transit - - - -
Emergency Medical Services 0.30000 0.30000 0.30000 0.30000
Hospital District 0.53290 0.55753 0.50000 0.50000
King County Library District 0.48526 0.56621 0.56992 0.56743
Valley Regional Fire Authority 1.17910 1.17977 1.18925 1.20479
King County Flood Zone 0.10514 0.10976 0.11616 0.13210
King County Ferry District 0.00348 0.00360 0.00372 0.00378
Subtotal 11.42319 12.55421 12.88745 13.67095
Total direct and overlapping 13.24655$ 14.48879$ 14.96272$ 15.77095$
Sources:
(1) King County and Pierce County Departments of Assessments; real and personal property
has been assessed at 100% of the estimated actual value.
City of Auburn, Washington
SCHEDULE 7
PROPERTY TAX DATA
Last Ten Fiscal Years
$1.00
$1.50
$2.00
$2.50
$3.00
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Per $1,000 of Assessed ValuationFigure 7a: Ten Years City Property Tax Rates
2010 -2019
City of Auburn: 2019 CAFR Statistical Section
163
Page 2 of 2
2014 2015 2016 2017 2018 2019
7,422,169$ 8,366,653$ 8,967,119$ 9,721,877$ 10,699,721$ 11,489,516$
7,422,169 8,366,653 8,967,119 9,721,877 10,699,721 11,489,516
100%100%100%100%100%100%
2.16739$ 2.08085$ 2.04719$ 2.19668$ 2.03239$ 1.92435$
- - - - - -
2.16739 2.08085 2.04719 2.19668 2.03239 1.92435
6.50262$ 6.14079$ 5.82831$ 6.74299$ 6.29971$ 3.81351$
1.51605 1.34522 1.48027 1.38294 1.32735 1.21906
2.47044 2.28514 2.16898 2.03205 2.91820 2.62922
0.21533 0.18885 0.16954 0.15334 0.13518 0.12266
- - - 0.25000 0.22745 0.20700
0.33500 0.30217 0.28235 0.26305 0.23940 0.21762
0.50000 0.50000 0.50000 0.50089 0.45689 0.41673
0.56175 0.50276 0.47714 0.45118 0.41190 0.37441
1.20294 1.18043 1.13495 1.06821 0.98189 0.92352
0.15369 0.13860 0.12980 0.11740 0.10708 0.09660
0.00349 - - - - -
13.46131 12.58396 12.17134 12.96205 13.10505 10.02033
15.62870$ 14.66481$ 14.21853$ 15.15873$ 15.13744$ 11.94468$
$0.00
$2.00
$4.00
$6.00
$8.00
$10.00
$12.00
$14.00
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019Dollars (Rate Per Thousand)Figure 7b: Property Tax Rates
Last Ten Fiscal Years
Sound Transit
Hospital District
King County Ferry District
King County Flood Zone
Valley Regional Fire
Authority King County Library District
Emergency Medical Services
Port of Seattle
State of Washington
King County
Auburn School District
City of Auburn: 2019 CAFR Statistical Section
164
Total Tax Collections
Fiscal Levy for in Subsequent Current Year
Year Fiscal Year Amount % of Levy Years Amount % of Levy Levy Balance
King County:
2010 12,712,653 12,459,564$ 98.0%253,791 12,713,355$ 100.0%(702)$
2011 13,069,304 12,846,996 98.3%226,405 13,073,400 100.0%(4,096)
2012 13,389,628 13,167,731 98.3%226,177 13,393,908 100.0%(4,280)
2013 12,900,768 12,673,712 98.2%221,970 12,895,681 100.0%5,086
2014 14,166,235 13,970,560 98.6%187,021 14,157,581 99.9%8,654
2015 15,388,186 15,226,048 98.9%173,080 15,399,128 100.1%(10,941)
2016 16,034,761 15,897,626 99.1%188,852 16,086,478 100.3%(51,718)
2017 18,649,852 18,418,844 98.8%193,205 18,612,049 99.8%37,803
2018 19,100,211 18,872,111 98.8%152,709 19,024,820 99.6%75,390
2019 19,544,281 19,298,789 98.7%- 19,298,789 98.7%245,493
300,689$
Pierce County:
2010 1,489,729 1,451,377$ 97.4%38,352 1,489,729$ 100.0%1$
2011 1,425,381 1,401,543 98.3%23,838 1,425,381 100.0%(0)
2012 1,495,390 1,478,230 98.9%17,159 1,495,390 100.0%0
2013 1,484,398 1,471,597 99.1%12,801 1,484,398 100.0%0
2014 1,595,675 1,587,010 99.5%8,501 1,595,511 100.0%164
2015 1,746,163 1,739,735 99.6%6,324 1,746,059 100.0%104
2016 1,867,636 1,866,288 99.9%1,289 1,867,577 100.0%59
2017 2,237,907 2,229,573 99.6%6,701 2,236,273 99.9%1,634
2018 2,320,684 2,318,858 99.9%- 2,318,858 99.9%1,826
2019 2,389,944 2,382,374 99.7%- 2,382,374 99.7%7,570
11,358$
Total current levy balance 312,046$
Source: King County Finance and Business Operations Division
Pierce County Budget and Finance Department
Fiscal Year of the Levy Total Collections to Date
City of Auburn, Washington
SCHEDULE 8
PROPERTY TAX LEVIES AND COLLECTIONS
Last Ten Fiscal Years
Collected Within the
97.0%
97.5%
98.0%
98.5%
99.0%
99.5%
100.0%
100.5%
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
FIGURE 8: TEN YEARS COLLECTION OF LEVIED PROPERTY TAXES
Last Ten Fiscal Years
Collection
percentage
within the
fiscal year of
the levy
Total
collection
percentage
City of Auburn: 2019 CAFR Statistical Section
165
Percentage Percentage
of Total City of Total City
Assessed Taxable Assessed Taxable
Taxpayer Value Rank Assessed Value Value Rank Assessed Value
Boeing 452,218,158$ 1 3.94%469,398,671$ 1 6.04%
EProperty Tax Inc.143,963,300 2 1.25%33,672,100 8 0.43%
Safeway 136,670,504 3 1.19%86,736,849 3 1.12%
Glimcher Supermall Venture 115,878,950 4 1.01%109,755,583 2 1.41%
PPF Industrial 113,642,000 6 0.99%N/A
Principal Life Insurance Co.109,741,800 5 0.96%N/A
Puget Sound Energy 89,782,056 7 1.25%64,805,982 5 0.83%
Prologis 87,591,400 8 0.76%N/A
KW Lakeland LLC 71,807,100 9 0.62%N/A
TIAA CREF 63,721,100 10 0.55%N/A
Universal Health N/A 65,886,195 4 0.85%
Belara Communities LLC N/A 51,114,300 6 0.66%
Muckleshoot Indian Tribe N/A 55,123,700 7 0.71%
UPS Supply Chain Solutions N/A 31,155,543 9 0.40%
Wal-Mart Store N/A 30,032,484 10 0.39%
TOTALS 1,385,016,368$ 12.53%997,681,407$ 12.85%
Source: King County and Pierce County Departments of Assessments
Total assessed value for 2019:11,489,515,681$
Total assessed value for 2010:7,765,878,000$
2019 2010
City of Auburn, Washington
SCHEDULE 9a
PRINCIPAL TAXPAYERS-PROPERTY TAXES
Current Year and Nine Years Ago
0%
5%
10%
15%
20%
25%
2019 2010
FIGURE 9a-1: TOP TAXPAYER ASSESSED
VALUE AS A PERCENTAGE OF TOTAL
ASSESSED VALUE
Current Year and Nine Years Ago
0%
5%
10%
15%
20%
25%
2019 2010
FIGURE 9a-2: TOP 10 TAXPAYERS ASSESSED
VALUE AS A PERCENTAGE OF TOTAL
ASSESSED VALUE
Current Year and Nine Years Ago
Percentage Percentage
Sales of Total City Sales of Total City
Tax Sales Taxes Tax Sales Taxes
Received Sector (1)Rank Received Received Sector (1)Rank Received
572,581$ Automotive 1 3.0%364,401$ Automotive 1 3.3%
497,353 Manufacturing 2 2.6%277,037 Manufacturing 2 2.5%
484,374 Retail Trade 3 2.6%269,958 Automotive 3 2.4%
456,971 Automotive 4 2.4%256,232 Automotive 4 2.3%
418,375 Construction 5 2.2%241,986 Automotive 5 2.2%
365,306 Automotive 6 1.9%217,191 Retail Trade 6 1.9%
352,652 Automotive 7 1.9%210,535 Retail Trade 7 1.9%
311,965 Retail Trade 8 1.7%209,377 Automotive 8 1.9%
286,644 Automotive 9 1.5%202,535 Automotive 9 1.8%
277,162 Automotive 10 1.5%190,954 Automotive 10 1.7%
4,023,383$ 21.4%2,440,206$ 21.9%
Source: Washington State Department of Revenue
2019 2010
City of Auburn, Washington
SCHEDULE 9b
PRINCIPAL TAXPAYERS-SALES TAXES
Current Year and Ten Years Ago
City of Auburn: 2019 CAFR Statistical Section
166
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
RETAIL TRADE SECTOR
Automotive/gas 2,553$ 2,785$ 3,019$ 3,136$ 3,309$ 3,707$ 3,659$ 3,972$ 4,122$ 4,069$
Furniture 194 218 226 235 254 254 185 197 210 222
Electronics & appliances 121 127 145 174 237 295 221 211 229 277
Building materials 389 383 425 447 502 590 579 580 576 652
Food stores 354 331 341 335 353 368 397 369 388 406
Health & personal care 144 148 149 174 188 221 284 369 420 426
Apparel 752 754 772 889 1,009 1,080 1,136 1,119 1,170 1,236
General merchandise 801 968 967 974 955 988 1,018 993 221 818
Misc. retail trade 834 851 897 990 1,182 1,193 1,032 1,033 1,827 1,399
Subtotal - Retail Trade 6,142 6,566 6,943 7,354 7,989 8,695 8,512 8,843 9,163 9,506
SERVICE SECTOR
Information 979$ 481$ 396$ 446$ 487$ 526$ 630$ 662$ 638$ 668$
Finance & insurance 68 66 53 91 88 95 111 122 140 138
Real estate, rental, leasing 288 304 326 279 315 334 359 368 368 434
Professional, scientific, technical 191 175 173 184 216 195 238 239 254 344
Administrative, supply & remediation services 239 295 334 336 350 383 329 276 424 524
Educational 56 53 54 50 49 60 50 56 47 46
Healthcare & social services 37 41 115 33 66 82 92 75 93 93
Arts & entertainment 154 149 153 149 158 208 156 110 119 120
Accommodation & food service 806 839 921 979 1,067 1,159 1,218 1,276 1,435 1,469
Other services 493 482 530 507 526 603 788 728 711 609
Subtotal - Services 3,310 2,882 3,056 3,054 3,322 3,646 3,970 3,912 4,229 4,445
OTHER SECTORS
Construction 1,322$ 1,296$ 1,221$ 1,943$ 1,754$ 2,297$ 2,292$ 2,632$ 2,310$ 2,193$
Manufacturing 411 583 405 624 1,163 862 761 678 754 821
Transportation 29 77 55 46 71 66 99 89 120 89
Wholesaling 1,180 1,260 1,297 1,279 1,205 1,229 1,265 1,363 1,469 1,496 Other business 128 224 61 64 120 72 67 65 154 265
Subtotal - Other 3,071 3,439 3,038 3,956 4,312 4,525 4,485 4,827 4,807 4,863
GRAND TOTAL 12,523$ 12,887$ 13,037$ 14,364$ 15,623$ 16,866$ 16,967$ 17,582$ 18,198$ 18,814$
OVERLAPPING SALES TAX RATES
Basic sales tax rates
City of Auburn 0.85%0.85%0.85%0.85%0.85%0.85%0.85%0.85%0.85%0.85%
Washington State 6.50%6.50%6.50%6.50%6.50%6.50%6.50%6.50%6.50%6.50%
King County 0.25%0.25%0.25%0.25%0.25%0.25%0.25%0.25%0.25%0.25%
Regional Transit Authority 0.90%0.90%0.90%0.90%0.90%0.90%0.90%0.90%1.40%1.40%
Metro 0.90%0.90%0.90%0.90%0.90%0.90%0.90%0.90%0.90%0.90%
Criminal Justice 0.10%0.10%0.10%0.10%0.10%0.10%0.10%0.10%0.10%0.10%
Total basic sales tax rate 9.50%9.50%9.50%9.50%9.50%9.50%9.50%9.50%10.00%10.00%
Special sales tax rates
Restaurants-for stadium funding (1)0.50%0.50%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%
Motor vehicles 0.30%0.30%0.30%0.30%0.30%0.30%0.30%0.30%0.30%0.30%
(1) This tax expired on October 1, 2011
Source: City of Auburn Finance Department and State of Washington
(Amounts Expressed in Thousands)
City of Auburn, Washington
SCHEDULE 10
RETAIL TAX COLLECTIONS BY SECTOR
Last Ten Fiscal Years
$0
$2
$4
$6
$8
$10
$12
$14
$16
$18
$20
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019MillionsFIGURE 10: RETAIL TAX COLLECTIONS
City of Auburn: 2010 -2019
Other
Wholesaling
Manufacturing Construction
Services
Other Retail
Automotive
City of Auburn: 2019 CAFR Statistical Section
167
General Public Works Public Works Total Percentage
Fiscal Obligation Trust Fund Capital Revenue Trust Fund Primary of Personal Per
Year Bonds Loans Leases Bonds Loans Government Income (1)Capita
2010 64,816,850$ 1,446,890$ 604,685$ 23,220,000$ 8,849,134$ 98,937,559$ 5.35%1,449.21
2011 63,430,850 1,366,507 566,212 22,930,000 8,125,303 96,418,872 5.07%1,363.68
2012 61,900,771 1,286,125 524,498 23,057,333 7,401,474 94,170,201 5.05%1,321.87
2013 59,568,505 4,239,813 480,771 34,292,569 8,203,090 106,784,748 5.57%1,458.11
2014 57,367,766 4,284,173 435,068 32,813,473 7,524,538 102,425,018 5.12%1,372.44
2015 55,094,519 4,086,797 569,773 31,304,378 7,563,847 98,619,314 4.85%1,305.44
2016 54,245,944 3,889,421 476,635 28,545,000 7,522,767 94,679,767 4.48%1,228.65
2017 50,766,661 3,692,045 382,914 28,161,699 6,702,388 89,705,707 4.07%1,136.09
2018 48,427,873 3,494,669 282,461 26,523,113 5,866,029 84,594,145 3.58%1,049.36
2019 42,703,404 3,297,294 173,692 24,829,528 4,967,012 75,970,930 2.98%929.65
Source: City of Auburn, Finance Department
(1) Personal income data provided by US Census Bureau estimate for 2013, 2012, 2011; Hebert Research for 2010 only;
other years are city estimates
City of Auburn, Washington
Last Ten Fiscal Years
Governmental Activities Business-type Activities
RATIOS OF OUTSTANDING DEBT BY TYPE
SCHEDULE 11
-
300
600
900
1,200
1,500
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
FIGURE 11: PER CAPITA DEBT
Last Ten Fiscal Years
City of Auburn: 2019 CAFR Statistical Section
168
Parks and Utility Total
Councilmanic Excess Levy Open Spaces Purpose Capacity
December 31, 2019 - Total Assessed Value:
12,316,932,930$
2.5% of Assessed Value -$ 307,923,323$ 307,923,323$ 307,923,323$ 923,769,969$
1.5% of Assessed Value 184,753,994 (184,753,994) - - -
Statutory Debt Limit 184,753,994 123,169,329 307,923,323 307,923,323 923,769,969
Debt Outstanding 46,115,178 - - - 46,115,178
Net Debt Outstanding 46,115,178 - - - 46,115,178
Remaining Debt Capacity 138,638,816$ 123,169,329$ 307,923,323$ 307,923,323$ 877,654,791$
General Capacity Special Purpose Capacity
City of Auburn, Washington
SCHEDULE 12
COMPUTATION OF LEGAL DEBT MARGIN
As of December 31, 2019
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Debt Limit 565,822$ 539,989$ 518,188$ 546,602$ 617,872$ 661,996$ 716,628$ 791,936$ 854,513$ 923,770$
Total net debt
applicable to limit 66,868 65,364 63,815 64,047 61,892 59,409 57,152 54,208 52,097 46,115
Legal debt margin 498,954$ 474,625$ 454,372$ 482,554$ 555,980$ 602,588$ 659,476$ 737,728$ 802,416$ 877,655$
Total net debt
applicable to the limit
as a percentage of debt limit 11.82%12.10%12.32%11.72%10.02%8.97%7.98%6.85%6.10%4.99%
City of Auburn, Washington
SCHEDULE 13
LEGAL DEBT MARGIN RATIOS
Last Ten Fiscal Years
(Expressed in Thousands)
City of Auburn: 2019 CAFR Statistical Section
169
Net Debt Percent Bonded Amount
Outstanding Applicable (3)Applicable
Net direct debt:
Net direct debt - City of Auburn (1)46,174,390$
Estimated net overlapping debt: (2)
King County 669,566,000$ 1.68%11,248,709$
Port of Seattle 335,470,000 1.68%5,635,896
School District No. 210 300,882,476 2.91%8,755,680
School District No. 408 396,810,000 77.18%306,257,958
School District No. 415 247,156,000 1.39%3,435,468
Rural Library District 68,420,000 2.98%2,038,916
Valley Regional Fire Authority 10,425,000 89.56%9,336,630
Pierce County 149,715,000 0.91%1,360,065
Total estimated net overlapping debt 348,069,322
Total direct and overlapping debt 394,243,712$
Sources:
(1) Includes both bonded and non bonded debt related to government activities. From Sch. 9 Changes in LT Liabilities
(2) Overlapping governments
(3) King County Assessors office and Pierce County Assessors office.
Calculation of overlapping debt: applicable percentage is determined by the ratio of assessed valuation of taxable property
in overlapping unit to valuation of property subject to taxation in the City of Auburn.
COMPUTATION OF NET DIRECT AND ESTIMATED OVERLAPPING DEBT
As of December 31, 2019
City of Auburn, Washington
SCHEDULE 14
City of Auburn: 2019 CAFR Statistical Section
170
Ratio
of Net
Debt Net Bonded Net
Assessed Net Service Bonded Debt to Bonded
Fiscal Value (1)Bonded Amount (3)Debt Assessed Debt per
Year Population (Thousands) Debt (2)Available (Thousands)Value Capita
2010 68,270 7,765,878$ 64,816,850$ 46,058$ 64,771$ 0.83%949$
2011 70,705 7,564,507 63,430,850 45,754 63,385 0.84%897
2012 71,240 7,225,550 61,900,771 46,155 61,855 0.86%869
2013 73,235 6,968,719 59,568,505 - 59,569 0.85%813
2014 74,630 7,422,169 57,367,766 - 57,368 0.77%769
2015 75,545 8,366,653 55,094,519 - 55,095 0.66%729
2016 77,060 8,967,119 54,245,944 - 54,246 0.60%704
2017 78,960 9,721,877 50,766,661 - 50,767 0.52%643
2018 80,615 10,699,721 48,427,873 - 48,428 0.45%601
2019 81,720 11,489,516 42,703,404 - 42,703 0.37%523
Notes:
(1) From Schedule 7
(2) General Obligation Debt related to government activities, from Schedule 11.
(3) Fund balance from debt service fund.
RATIOS OF NET GENERAL BONDED DEBT TO ASSESSED VALUE
AND GROSS BONDED DEBT PER CAPITA
Last Ten Fiscal Years
City of Auburn, Washington
SCHEDULE 15
$0
$200
$400
$600
$800
$1,000
-
0.0020
0.0040
0.0060
0.0080
0.0100
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019Debt/Assessed ValueYear
FIGURE 15: BONDED DEBT RATIOS
Last Ten Fiscal Years
Debt/AV Debt/Pop
City of Auburn: 2019 CAFR Statistical Section
171
Direct(2)Debt Service Requirements
Gross (1)Operating Net Revenue Times
Year Revenue Expense Available Principal Interest Total (3)Coverage
2010 33,115,398$ 28,749,877$ 4,365,520$ 1,056,094$ 150,675$ 1,206,769$ 3.62
2011 34,909,200 29,201,088 5,708,112 1,013,830 1,248,612 2,262,442 2.52
2012 38,119,472 30,974,506 7,144,966 1,028,830 1,277,285 2,306,115 3.10
2013 42,406,722 36,406,640 6,000,082 1,943,830 1,508,405 3,452,235 1.74
2014 46,900,016 35,502,812 11,397,204 2,197,667 1,599,347 3,797,014 3.00
2015 49,673,159 38,425,799 11,247,360 2,231,093 1,563,433 3,794,526 2.96
2016 50,385,548 38,614,719 11,770,829 2,326,117 1,523,830 3,849,947 3.06
2017 51,771,171 38,726,814 13,044,357 2,422,369 1,494,706 3,917,075 3.33
2018 53,103,312 39,020,666 14,082,646 2,482,692 1,391,468 3,874,160 3.64
2019 53,910,487 39,330,641 14,579,846 2,553,276 1,334,334 3,887,610 3.75
Source: City of Auburn, Finance Department
(1) Includes water, sewer & storm drainage operating, interest and other revenues.
(2) Includes water, sewer & storm drainage operating expenses less depreciation.
(3) Includes both parity and non-parity debt.
PLEDGED REVENUE BOND COVERAGES
Last Ten Fiscal Years
City of Auburn, Washington
SCHEDULE 16
$0
$2
$4
$6
$8
$10
$12
$14
$16
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019Millions
YEAR
FIGURE 16: UTILITY BOND COVERAGES
Last Ten Fiscal Years
Net revenue available Debt service requirements
City of Auburn: 2019 CAFR Statistical Section
172
Item 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
School enrollment (1)14,482 14,363 14,596 14,971 15,277 15,663 15,945 16,525 16,949 17,208
Rate of unemployment (2)9.7%8.7%7.5%6.0%5.4%4.9%4.4%4.4%4.2%3.7%
Population (3)70,180 70,705 71,240 73,235 74,630 75,545 77,060 78,960 80,615 81,720
Personal income (thousands of dollars) (4)1,900,474$ 1,901,540$ 1,871,973$ 1,917,219$ 2,000,606$ 2,033,520$ 2,111,829$ 2,206,142$ 2,365,567$ 2,552,034$
Per capita personal income (4)27,080$ 26,894$ 26,277$ 26,179$ 26,807$ 26,918$ 27,405$ 27,940$ 29,344$ 31,229$
Housing units (5)
One unit 14,641 14,775 14,957 15,393 15,804 16,042 16,167 16,373 16,616 16,674
Two or more 10,560 10,592 10,631 10,841 10,841 10,847 10,854 11,110 11,417 12,008
Mobile home or special 2,633 2,635 2,618 2,630 2,631 2,637 2,630 2,675 2,659 2,663
Total housing units 27,834 28,002 28,206 28,864 29,276 29,526 29,651 30,158 30,692 31,345
Sources:
(1) Auburn School District No. 408
(2) Bureau of Labor Statistics (BLS)
(3) WA State Office of Financial Management
(4) US Census Bureau
(5) WA State Office of Financial Management
City of Auburn, Washington
SCHEDULE 17
POPULATION, INCOME AND HOUSING TRENDS
Last Ten Fiscal Years
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
90,000
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
FIGURE 17: POPULATION AND HOUSING TRENDS
Last Ten Fiscal Years
Population Total housing units
City of Auburn: 2019 CAFR Statistical Section
173
Percentage Percentage
o f Total City of Total City
Employer Product/service Employees Rank Employment Employees Rank Employment
The Boeing Company Aerospace 5,740 1 13.9%5,179 1 15.8%
Muckleshoot Tribal Enterprises Gaming 3,515 2 8.5%2,500 2 7.6%
The Outlet Collection*Retail 3,225 3 7.8%1,700 4 5.2%
Auburn School District Education 2,610 4 6.3%1,800 3 5.5%
Multicare Auburn Medical Center**Hospital 1,821 5 4.4%805 6 2.5%
Green River College Education 1,304 6 3.1%1,067 5 3.3%
Emerald Downs Racetrack Gaming 1,145 7 2.8%678 7 2.1%
Safeway Distribution Center Distribution 875 8 2.1%650 8 2.0%
Skills, Inc Manufacturing 675 9 1.6%0.0%
Zones, Inc.Technology Reseller 560 10 1.4%500 10 1.5%
Federal Aviation Administration Federal Government - -0.0%500 10 1.5%
General Services Administration Federal Government - -0.0%500 10 1.5%
Social Security Administration Gov't / Public Offices 0.0%600 9 1.8%
Totals 21,470 51.8%16,479 50.2%
2019 - City of Auburn, Economic Development
2010 - City of Auburn CAFR
* Previously the Supermall.
**Previously Auburn Regional Medical Center.
2019 2010
City of Auburn, Washington
SCHEDULE 18
MAJOR EMPLOYERS
Current Year and Nine Years Ago
0%
20%
40%
60%
80%
100%
2010 2019
FIGURE 18a: AUBURN EMPLOYMENT BASE
PERCENTAGE OF TOP EMPLOYER COMPARED TO
ALL EMPLOYERS
Last Ten Fiscal Years
Top
employerAll
employers
0%
20%
40%
60%
80%
100%
2010 2019
FIGURE 18b: AUBURN EMPLOYMENT BASE
PERCENTAGE OF TOP 10 EMPLOYERS
COMPARED TO ALL EMPLOYERS
Last Ten Fiscal Years
Top 10
employersAll
employers
City of Auburn: 2019 CAFR Statistical Section
174
Department 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Mayor 10 10 7 7 3 3 3 3 3 3
Administration (1)0 0 0 0 8 8 10 11 12 8
Human Resources 7 7 8 8 8 8 9 8 8 8
Finance 21 22 22 23 23 22 22 22 22 24
Municipal Court (2)17 19 0 0 0 0 0 0 0 0
Legal 13 13 13 13 14 14 14 15 15 16
Community Development 24 24 28 29 25 26 26 26 25 32
Police 131 118 122 125 126 129 131 138 140 140
Public Works 43 43 43 48 49 50 53 54 55 55
Parks, Arts and Recreation (3)35 36 36 36 45 45 47 47 47 49
Street 12 19 19 19 19 19 19 20 20 21
Water 22 22 22 22 24 23 23 23 23 23
Sewer 11 12 11 10 10 10 10 10 10 10
Storm Drainage 16 10 10 10 10 10 10 10 12 12
Solid Waste 2 2 2 2 2 2 2 2 2 0
Airport (4)0 0 0 0 0 0 0 0 3 3
Cemetery 7 7 7 5 5 5 6 6 6 6
Golf Course (3)8 8 8 8 0 0 0 0 0 0
Facilities 10 10 9 9 9 10 10 10 10 11
Multimedia (5)0 0 0 0 4 4 4 4 4 4
Innovation & Technology 14 14 18 18 15 16 16 17 17 18
Equipment Rental 6 6 7 10 12 12 12 12 12 12
TOTAL 408 401 391 402 411 416 427 438 446 454
Source: City of Auburn Finance Department
(1)
(2)
(3)
(4)In 2018, 3.0 FTEs were added to the Airport and the Airport is now managed in-house.
(5)
City of Auburn, Washington
SCHEDULE 19
STAFFING LEVELS BY DEPARTMENT
Last Ten Fiscal Years
The Administration Department was created in 2014. These FTEs were reorganized from several existing departments
such as the Mayors Department, Public Works and Community Development. This department primarily consists of
Emergency Management, Economic Development and Public Affairs.
In 2012, the City contracted out the Municipal Court to the King County District Court which resulted in a reduction of 19
positions.
In 2014 the Golf Course Fund was reclassified from an Enterprise Fund and is now included in the General Fund. This
change moved 8 FTEs from the Golf Course Fund to the Parks, Arts and Recreation Department.
In 2014 the Multimedia Division was reorganized from the Innovation & Technology Fund into its' own Internal Service
Fund. The 3.6 FTEs report to the Director of Administration.
-
20
40
60
80
100
120
140
160
Police Public
Works/Streets
Parks, Arts &
Recreation
Utilities Administration Community
Development
OtherNumber of EmployeesFIGURE 19: STAFFING LEVELS
BY TYPE OF SERVICE
Last Ten Fiscal Years
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
City of Auburn: 2019 CAFR Statistical Section
175
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Planning*
Commercial permits 271 324 305 394 389 386 410 320 322 338
Commercial construction value ($1,000's)15,330$ 46,260$ 69,246$ 138,248$ 60,732$ 66,223$ 151,220$ 74,840$ 72,623$ 157,026$
Residential permits 414 442 665 576 463 340 426 345 210 195
Residential construction value ($1,000's)34,915$ 47,681$ 100,050$ 97,151$ 84,539$ 63,370$ 73,679$ 52,750$ 25,790$ 18,832$
Police
Crimes:
Arson 23 29 27 14 32 - - 19 20 22
Aggravated Assault 137 148 110 145 156 186 179 198 158 171
Burglary 725 757 983 651 810 851 727 722 615 547
DUI 192 214 171 138 126 188 158 194 223 180
Homicide 3 2 6 5 1 8 6 3 1 5
Narcotics 442 396 383 279 458 511 458 742 912 797
Rape 15 23 23 26 31 31 36 49 42 45
Robbery 79 107 110 109 104 91 98 117 115 125
Theft 2,533 2,435 2,415 2,583 3,192 2,728 2,235 2,169 2,945 2,223
Theft - motor vehicle 569 600 588 678 630 996 1,159 969 973 924
Traffic:
Non-criminal 7,182 5,400 4,922 5,378 6,520 5,489 5,706 11,483 10,946 7,262
Parking 4,648 3,383 1,946 2,052 5,238 3,737 3,822 3,777 3,477 4,425
Parks and Recreation
Athletic teams 439 429 388 382 358 321 328 306 312 315
Recreation activities 2,281 3,462 3,833 3,568 3,557 3,511 2,435 3,389 3,498 3,520
Golf course rounds 49,950 45,484 45,704 47,480 47,697 52,718 48,803 47,001 50,720 51,860
Senior center visits 41,350 41,802 40,704 36,991 40,715 38,485 36,636 35,454 32,464 77,378
Cultural activities 101 127 146 180 202 204 203 214 211 229
Museum audience served 12,570 14,119 15,397 14,163 13,968 13,535 14,380 13,570 15,153 14,638
Cemetery placements 228 273 259 226 250 237 281 264 263 253
Sources: Various city departments
* Includes the following permit types: Building, addition, tenant improvements, alterations and sign permits.
City of Auburn, Washington
SCHEDULE 20
OPERATING INDICATORS BY DEPARTMENT
Last Ten Fiscal Years
City of Auburn: 2019 CAFR Statistical Section
176
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
General City
Total area (square miles)29.8 29.8 29.8 29.8 29.8 29.8 29.8 29.8 29.8 29.8
Public Works
Miles of streets 283 285 249 245 244 254 238 238 247 248
Number of streetlights (1)5,523 5,581 6,101 6,110 6,211 6,362 6,552 6,581 6,738 3,429
Number of traffic signals 86 89 93 94 94 95 95 95 95 94
Utilities
Number of services 13,372 13,334 13,863 14,106 14,573 14,787 14,872 14,746 14,769 14,781
Miles of water lines (1)297 304 314 315 316 320 321 323 347 283
Miles of sanitary sewer lines (1)213 213 219 220 220 223 224 225 227 206
Miles of storm lines (1)226 247 252 263 282 294 319 337 362 234
Number of fire hydrants (1)3,044 3,277 3,308 3,329 3,559 3,580 3,577 3,595 3,664 3,014
Public Safety
Number of police stations 2 2 2 2 2 2 3 3 3 3
Parks and Recreation
Total park acreage (2)602 602 630 635 972 977 989 986 986 986
Number of softball/baseball fields 18 18 17 17 18 18 18 18 18 18
Number of soccer/football fields 3 3 3 4 4 4 4 4 4 4
Number of playgrounds 35 35 35 36 28 31 31 30 30 30
Sources: Various city departments
(1) This statistic has declined because it now represents City owned asset only effective in 2019.
City of Auburn, Washington
SCHEDULE 21
CAPITAL ASSET INDICATORS BY DEPARTMENT
Last Ten Fiscal Years
(2) The increase in total park acreage since 2013 is due to property inventory update in anticipation of the Parks Recreation & Open
Space Plan update and additional park categories are now being reported.
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Water Customers by Class
Single Family Residential 10,564 10,704 11,224 11,476 11,822 11,973 12,054 12,010 12,010 12,028
Multifamily 991 991 989 986 1,000 1,003 1,002 1,009 1,012 1,010
Commercial 1,100 1,095 1,098 1,094 1,146 1,190 1,186 1,158 1,159 1,163
Mfr./Industrial 38 38 37 37 38 38 37 2 2 2
Schools 37 37 36 37 37 37 38 37 37 37
City Accounts 29 28 26 28 30 30 31 31 30 30
Irrigation 401 434 446 441 493 509 517 492 512 505
Total Retail Water Customers 13,160 13,327 13,856 14,099 14,566 14,780 14,865 14,739 14,762 14,775
Wholesale Water Customers 8 8 7 7 7 7 7 7 7 6
Sewer Customers by Class
Single Family Residential 10,918 11,183 11,522 11,982 12,631 12,890 13,091 13,124 13,176 13,234
Non-single Family Residential 2,612 2,616 2,653 2,659 2,713 2,728 2,725 2,724 2,728 2,731
Total Sewer Customers 13,530 13,799 14,175 14,641 15,344 15,618 15,816 15,848 15,904 15,965
Storm Customers by Class
Single Family Residential 14,495 14,846 15,168 15,618 16,013 16,222 16,200 16,566 16,610 16,665
Non-single Family Residential 1,769 1,653 1,661 1,640 1,670 1,679 1,913 1,671 1,691 1,696
Total Storm Customers 16,264 16,499 16,829 17,258 17,683 17,901 18,113 18,237 18,301 18,361
Sources: City of Auburn - Utility Billing
City of Auburn, Washington
SCHEDULE 22
NUMBER OF UTILITY CUSTOMERS BY CUSTOMER CLASS
Last Ten Fiscal Years
City of Auburn: 2019 CAFR Statistical Section
177