HomeMy WebLinkAbout2020 ACFR2020 ANNUAL COMPREHENSIVE FINANCIAL REPORT
FOR THE YEAR ENDED DECEMBER 31, 2020
CITY OF AUBURN
WASHINGTON
ANNUAL COMPREHENSIVE
FINANCIAL REPORT
Fiscal Year January 1, 2020 through December 31, 2020
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Prepared by
City of Auburn Finance Department
Jamie Thomas, Finance Director
City of Auburn: 2020 Annual Comprehensive Financial Report Table of Contents
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ANNUAL COMPREHENSIVE FINANCIAL REPORT
For the Year Ended December 31, 2020
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
Statement of Changes in Fiduciary Net Position ........................................................................ 55
Notes to the Financial Statements ................................................................................................... 57
Required Supplemental Information
Schedule of Proportionate Share of the Net Pension Liability PERS 1 .......................................... 107
Schedule of Proportionate Share of the Net Pension Liability PERS 2/3 ...................................... 107
Schedule of Proportionate Share of the Net Pension Liability LEOFF 1 ....................................... 107
Schedule of Proportionate Share of the Net Pension Liability LEOFF 2 ....................................... 107
Schedule of Employer Contributions PERS 1 .............................................................................. 109
Schedule of Employer Contributions PERS 2/3 .......................................................................... 109
Schedule of Employer Contributions LEOFF 2 ........................................................................... 109
Schedule of Changes in Total Pension Liability and Related Ratios ............................................. 110
Schedule of Changes in Total OPEB Liability and Related Ratios ................................................ 111
City of Auburn: 2020 Annual Comprehensive Financial Report Table of Contents
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Page
Combining and Individual Fund Financial Statements and Schedules
Non-Major Government Funds:
Combining Balance Sheet ..........................................................................................................114
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances .......................115
Non-Major Special Revenue Funds:
Combining Balance Sheet ..........................................................................................................118
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances ...................... 120
Statement of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual:
Local Street Special Revenue Fund ......................................................................................... 122
Hotel/Motel Tax Special Revenue Fund ................................................................................ 123
Arterial Street Preservation Special Revenue Fund .................................................................. 124
Drug Forfeiture Special Revenue Fund ................................................................................... 125
Housing & Community Development Special Revenue Fund ................................................. 126
Recreation Trails Special Revenue Fund ................................................................................. 127
Business Improvement Area Special Revenue Fund ................................................................ 128
Cumulative Reserve Special Revenue Fund ............................................................................ 129
Mitigation Special Revenue Fund .......................................................................................... 130
Non-Major Debt Service Funds:
Combining Balance Sheet ......................................................................................................... 132
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances ...................... 133
Capital Project Funds:
Combining Balance Sheet ......................................................................................................... 136
Combining Statement of Revenues, Expenditures, and Changes in Fund Balance ....................... 137
Permanent Fund:
Balance Sheet........................................................................................................................... 140
Statement of Revenues, Expenditures and Changes in Fund Balance ...........................................141
Non-Major Enterprise Funds:
Combining Statement of Net Position ...................................................................................... 144
Combining Statement of Revenues, Expenses, and Changes in Net Position ............................... 145
Combining Statement of Cash Flows ........................................................................................ 146
Internal Service Funds:
Combining Statement of Net Position ...................................................................................... 150
Combining Statement of Revenues, Expenses, and Changes in Net Position ................................151
Combining Statement of Cash Flows ........................................................................................ 152
City of Auburn: 2020 Annual Comprehensive Financial Report 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 ............ 177
City of Auburn: 2020 Annual Comprehensive Financial Report Table of Contents
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Mayor Nancy Backus
Serving as Mayor since 2014
City Council 2004-2014
AUBURN CITY COUNCIL
Claude DaCorsi
Deputy Mayor
Serving since 2014
Bob Baggett
Serving since 2016
Larry Brown
Serving since 2018
James Jeyaraj
Serving since 2019
Robyn Mulenga
Serving since 2019
Chris Stearns
Serving since 2019
Yolanda Trout-Manuel
Serving since 2014
DEPARTMENT DIRECTORS
Administration | Dana Hinman
City Attorney | Kendra Comeau
Community Development | Jeff Tate
Finance | Jamie Thomas
Human Resources | Candis Martinson
Innovation and Technology | David Travis
Parks, Arts & Recreation | Daryl Faber
Police | Daniel O’Neil
Public Works | Ingrid Gaub
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Director of Innovation and
Technology
David Travis
Parks, Arts and Recreation Director
Daryl Faber
City Attorney
Kendra Comeau
Police Chief
Daniel O’Neil
Finance Director
Jamie Thomas
Director of Public Works
Ingrid Gaub
Director of Human Resources and
Risk Management
Candis Martinson
Director of Community Development
Jeff Tate
Director of Administration
Dana Hinman
Mayor
Nancy Backus
City Council
Council Administrative
Assistant
Executive Assistant Outreach Program
Administrator
Citizens
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August 27, 2021
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 Annual Comprehensive Financial Report for the year ended
December 31, 2020. 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 Annual Comprehensive Financial Report for
the fiscal year ended December 31, 2020. 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 Annual Comprehensive Financial Report has several significant uses. First, it provides a general
overview of the City’s finances to the general public and taxpayers. Second, it is referenced by bond
buyers and rating agencies to evaluate the City’s fiscal stability and creditworthiness. Finally, the Annual
Comprehensive Financial Report is a series of financial statements that have been audited by the State
Auditor’s Office and provides assurances that assets are safeguarded and funds are expended as they were
legally appropriated in the biennial budget.
I. INTRODUCTION
A. Management Representation
The Auburn Finance Department prepared the report and accepts complete responsibility for the
accuracy, completeness, and fairness of presentation of the information included. The data is believed to
be accurate in all material respects, and it is believed that all significant information necessary for an
understanding of the affairs and financial condition of the City has been disclosed. The report has been
prepared in conformance with generally accepted accounting principles and in conformance with financial
reporting standards issued by the Governmental Accounting Standards Board (GASB).
City management has developed and evaluated a comprehensive internal control structure that is
designed to protect the City’s assets from loss, theft, or misuse and to compile sufficient reliable
information for the preparation of the City’s financial statements in conformity with generally accepted
accounting principles. Because the cost of internal controls should not outweigh the benefits, the City’s
internal control structure is designed to provide reasonable, rather than absolute, assurance that the
financial statements will be free from material misstatement. As management, we attest that, to the best
of our knowledge and belief, this financial report is complete and reliable in all material aspects.
City of Auburn: 2020 ACFR Letter of Transmittal
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GAAP requires that management provide a narrative introduction, overview and analysis to accompany
the basic financial statements in the form of Management’s Discussion and Analysis (MD&A). This letter
of transmittal is designed to complement the MD&A and should be read in conjunction with it. Auburn’s
MD&A can be found immediately following the independent auditor’s report.
B. Organization of the Report
The report is divided into three sections: the Introductory Section, the Financial Section, and the Statistical
Section. The Introductory Section contains the table of contents, a list of the City’s principal officials, an
organizational chart, this letter of transmittal, and the Certificate of Achievement for Excellence in
Financial Reporting from the Government Finance Officers’ Association of the United States and Canada
for the 2019 Annual Comprehensive Financial Report. The Financial Section contains the Washington
State Auditor’s Report, completed by the Washington State Auditor, Management’s Discussion and
Analysis, Government-Wide Financial Statements, the Fund Financial Statements, Notes to the Financial
Statements and Other Required Combining and Supplemental Information. The Statistical Section, which
is unaudited, contains a range of statistical tables and charts that present various financial, economic,
social, and demographic data about the City. This information depicts various trends that have affected
the fiscal condition of the City over the last ten years. The data presented in this section complies with
the requirements of GASB Statement No. 44, Economic Condition Reporting: The Statistical Section.
C. Reporting Entity
The City of Auburn was incorporated in 1891 and currently operates as a non-charter Code City under
the laws of the State of Washington. Code City status in Washington provides “home rule” authority to
cities. Auburn has a Mayor/Council form of government; the Mayor is elected and is the full-time Chief
Administrator. The seven-member City Council is elected at large, rather than by district. Members of
the City Council are responsible for establishing the general direction and policies for the City and for
providing the resources necessary to carry out those policies. As the City’s chief administrator, the Mayor
is responsible for carrying out the policy and direction set by the City Council. This includes the
enforcement of laws and ordinances, the execution of contracts and agreements, and maintenance of
peace and order in the city. The City is located primarily in southern King County (county seat, Seattle)
and a small northeastern portion of Pierce County. These are the two most populous counties in the
State of Washington, comprising over 41% of the state-wide population. The City is strategically located
in relation to the labor and consumer markets of the two largest cities in the area: Seattle in King County
and Tacoma in Pierce County. Auburn currently serves approximately 81,940 people within its
incorporated limits.
The City provides a wide range of services, both beneficial and necessary, to its residents as well as to the
adjacent area. These services include police protection; parks and recreational facilities that include a
senior center, gymnasium, community and teen center, golf course and museum; land use management
and development regulation; infrastructure construction and maintenance; water, sanitary sewage
collection, storm drainage, and solid waste services; a general aviation airport; and a municipal cemetery.
The City is a member/owner of Valley Communications providing emergency 911 services and South
Correctional Entity (SCORE) providing jail facilities. Both these organizations provide services to other
owner/member governments and other non-owner/member governments as well through interlocal
agreements.
City of Auburn: 2020 ACFR Letter of Transmittal
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II. ECONOMIC CONDITION
A. Summary of Local Economy
Auburn began as a small rural community founded on agriculture and the railroad, which maintained a
significant switching and repair facility. The City has grown significantly since World War II, both as a
residential community and as a commercial and industrial location. Auburn has
become a significant area for automobile sales and has also developed a substantial manufacturing and
distribution base with the largest employer being The Boeing Co., which employs approximately 6,000
people at its Auburn facility. Boeing is a worldwide supplier of aircraft and related products. At the start
of 2020, Auburn was providing approximately 77,000 jobs with a unemployment rate of 3.4%. The
COVID-19 pandemic led to significant job losses. By April 2020 Auburn experienced a peak
unemployment rate of 18%. By the end of 2020 the unemployment rate had subsided to 7.2%, which
is below both the national and state figures.
Auburn has enjoyed steady residential and industrial growth over the years as development has moved
outward from the major cities. Auburn is currently home to about 4,000 businesses and is the center of
the largest industrial complex in the Pacific Northwest. The City has a growing array of manufacturing
facilities, as well as distribution, wholesale, and retail operations. Auburn’s transit-oriented district is
home to the MultiCare Auburn Medical Center, with a Trauma Level III emergency facility. This location
serves the local geographic area and employs approximately 1,700 people.
The City’s recent efforts to promote economic development and champion its designation as an
Innovation Partnership Zone helps to solidify Auburn’s economic standing in the region and spur new
business and development activity. A number of commercial and service industry projects, currently in
progress or in the planning stages, contribute to an economic picture of future growth.
Significant developments in the City include the issuance of 270 commercial building permits representing
about $93 million in construction investments, including projects such as completion of the Auburn Town
Center (7-story, 166 unit mixed use building), the start of construction of the Legacy Plaza (8-story, 266
unit mixed use development), a new Lea Hill Elementary School replacement, the start of construction
for the replacement of Pioneer Elementary School, start of construction of the Copper Gate mixed use
development (500 unit mixed use complex). These projects have positive impacts on available revenue
and, as they take hold, will serve to strengthen the City’s economic future.
The City’s total assessed property valuation has nearly doubled from $6.5 billion in 2008 to $12.4 billion
in 2020. However, the recession, coupled with the impact of the Streamlined Sales Tax (SST) legislation
enacted by the State of Washington that went into effect July 1, 2008, reduced general sales tax revenues
from their high in 2007 of $17.5 million to a low of $11.8 million in 2009, then increasing slowly to $19.1
million in 2020. The change to SST is estimated to have eliminated approximately $200,000 per month
of sales tax revenue to the City. To lessen the financial impact on cities impacted by this legislation, the
State of Washington implemented a mitigation plan under which the City of Auburn received
approximately $1.9 million in mitigation payments each year from 2009 to 2017. This declined annually
to $0.5 million in 2020 as it was phased out and – theoretically – replaced by voluntary payments for
internet sales taxes. Mitigation payments had been scheduled to end in the third quarter of 2019 but
were extended to June 2021, although payments were halted in early 2020 due to the impacts of the
COVID-19 pandemic on the State’s finances. This loss may ultimately be offset by Marketplace Fairness
Act (internet sales tax) revenues.
City of Auburn: 2020 ACFR Letter of Transmittal
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Sales tax revenue, excluding criminal justice and annexation sales tax credits, increased by $0.1 million
(0.7%) from 2019 to 2020 despite the impacts of COVID-19. Sales tax revenue constitutes about 24% of
total General Fund revenue. While the local economy is generally favorable, the City remains vigilant in
its management of expenses to ensure it lives within its means, particularly with the uncertainties related
to continued impacts of the COVID-19 pandemic.
Despite economic cycles, the City has continually focused on enhancing the quality of life in the
community and focusing on maintaining and redeveloping its aging infrastructure. For example, the
City’s Arterial Street program is partially funded by dedicating 1% of utility taxes toward arterial roadway
improvements. For 2020, this funding source was replaced by the use of real estate excise taxes (REET),
but the utility tax source was restored in 2021.
The City’s budgeting process is based on financial policies directed at conserving fiscal resources while
supporting programmatic strategies. Budget recommendations reflect a long-range analysis of fiscal
trends. These policies and practices have not only averted serious funding problems in the past, but have
enabled the General Fund to remain on a firm financial footing during the most recent recession.
The City maintains a stable financial condition by managing expenditure budgets to available revenue
streams. All funds contain adequate balances, and the City’s debt is manageable. The General fund
contains a satisfactory balance along with a reserve fund for stabilization, a significant Insurance fund has
been set aside for contingencies, and the Equipment Rental fund is adequate for vehicle replacement. The
Proprietary and Fiduciary funds are in satisfactory condition. The City completed a review of the City’s
water, sewer and stormwater utility rates in 2019 and established rates to fund operating and capital
needs through 2022. This will cover increased debt service associated with new revenue bonds being
issued in 2020 to support significant new utility construction projects. Utility rates will continue to be
reviewed as part of the comprehensive planning process.
B. Future Economic Outlook
Auburn is in a continuous process of both short-term and long-term financial planning. Short-term
financial planning is inherent in the development of the City’s biennial budget. Concurrent with the
biennial budget is the review of the City’s long-term capital needs. Funding sources are assessed with the
development of the six-year Capital Facilities Plan. The capital facility plan is a component of the
Comprehensive Master Plan, which outlines how the City should look and function in twenty years and
creates a vision that can be realistically implemented. An integral part of this vision is determining how
to allocate the City’s financial resources to achieve the desired goals.
The City has several long-term municipal planning and capital projects underway. These include
reconstruction of aged utility infrastructure and street improvements that include rehabilitation of local
neighborhood streets. These projects will improve mobility, will contribute to the restoration of a
North/South arterial corridor, and provide for greater recreational opportunities for the community.
These municipal projects, coupled with the new private sector developments described earlier, will help
ensure local economic growth continues, albeit not at the rate experienced in the late 1990s. The
challenge is to control costs that grow at a faster rate than revenue. Areas of concern are health care
costs, pension costs, other post-employment benefits (OPEB), and public safety costs related to
incarceration and labor contracts. Continuing to maintain service level in these sectors will draw valuable
resources from other areas such as infrastructure replacement and capital programs. As Auburn moves
forward, economic conditions will be continually monitored and adjustments to city spending and
City of Auburn: 2020 ACFR Letter of Transmittal
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services made to maintain the City’s financial health. Long-term plans will be focused on ensuring the
City continues to be an economically strong and viable city.
III. FINANCIAL INFORMATION
A. Cash Management
The City invests in U.S. Treasury and Agency Issues, Prime Bankers Acceptances, Time Deposits, and
Repurchase Agreements. Investment policies and procedures, established by the Mayor and adopted by
the City Council, require the City to establish a trustee to take delivery of all investment transactions at
time of payment. The City has contracted with the Bank of New York to provide delivery versus payment
trustee services on all government agency investments. The State of Washington maintains an investment
pool to provide economies of scale in investing to smaller- and medium-sized cities in the State. The City
uses this service for all funds not invested in longer-term securities. The pool operates under the same
legal restrictions that apply to all municipalities in the State and, consequently, uses the same instruments
as listed above. The State also takes delivery of all investment transactions.
The City has adopted a comprehensive investment policy statement to guide City investment practices.
These policies are closely patterned after the recommendations in Investing Public Funds published by the
Government Finance Officers Association (GFOA). Investments are restricted to less than three years in
order to maintain liquidity on all investments in all funds, yet enable the City to take advantage of the
yield curve. Fiduciary funds, which involve long-term reserves and require minimal liquidity, are invested
for longer time periods. The City undertakes repurchase agreements only with financial institutions that
offer the City full protection in the event of default, by providing the delivery of the underlying security
to the City.
B. Risk Management
The City participates in the Washington Cities’ Insurance Authority (an insurance pool of over 160
members) and the City actively pursues risk reduction in the operation of its programs.
The Washington Cities’ Insurance Authority not only provides a sharing of risk by pooling of losses, it
also provides an extensive array of professional services in risk management. The pool monitors the
City’s management practices and damage claims. The City follows the guidelines provided by the pool
in an effort to minimize risk exposure in the day-to-day operations of the City’s programs. The City also
maintains an extensive employee safety program managed by the Human Resources department.
The City purchases, with employee participation, most of its health insurance for its employees through
commercial policies administered by Brown and Brown. Employees represented by the outside Teamsters
Union have insurance through the Teamsters organization and employees represented by the inside
Teamsters Union have insurance policies administered by the Association of Washington Cities. Beginning
in 2014, the City created its own worker’s compensation program and pool. Prior, the City participated
in the Washington State Workers’ Compensation program.
In order to keep its long-term options open and to provide for any uninsured losses that might occur, the
City has elected to build an insurance reserve (the Insurance fund). The Insurance fund supplements
various insurance coverage’s maintained by the City. This fund is also used to self-insure some limited
exposures, the most significant of which is accidental loss to City-owned vehicles.
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Office of the Washington State Auditor
Pat McCarthy
INDEPENDENT AUDITOR’S REPORT ON THE FINANCIAL STATEMENTS
Mayor and City Council
City of Auburn
Auburn, Washington
REPORT ON THE FINANCIAL STATEMENTS
We have audited the accompanying financial statements of the governmental activities, the business-
type activities, each major fund and the aggregate remaining fund information of the City of Auburn, as
of and for the year ended December 31, 2020, and the related notes to the financial statements, which
collectively comprise the City’s basic financial statements as listed in the table of contents.
Management’s Responsibility for the 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
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
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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 s
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, 2020, 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 1 to the financial statements, in 2020, the City adopted new accounting guidance,
Governmental Accounting Standards Board Statement No. 84, Fiduciary Activities. Our opinion is not
modified with respect to this matter.
As discussed in Note 20 to the financial statements, the full extent of the COVID-19 pandemic’s direct
or indirect financial impact on the City is unknown. 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 appropriate
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.
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 GOVERNM ENT AUDITING STANDARDS
In accordance with Government Auditing Standards, we will also issue our report dated August 27, 2021,
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
August 27, 2021
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City of Auburn: 2020 Annual Comprehensive Financial Report 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 $756.9 million, an increase of $19.2 million or 2.6%. Of this, a total of $581.3 million,
or 76.8% 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 $13.0 million of net position is restricted
for purposes of endowment and debt service. Of the remaining $162.7 million of net position, $31.4 million is
legally restricted, restricted by City policy for specific purposes, or is restricted for use by the City’s utilities, and
$131.3 million is unrestricted.
• The net increase in government-wide net position during 2020 was $19.2 million. City-owned net investment
in capital assets declined by $3.8 million, restricted net position increased by $8.4 million, and unrestricted net
position increased by $14.6 million.
• Business-type net position increased by $12.7 million to $283.8 million during 2020 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 $80.6 million. Of this amount, $30.6 million, or 38.0%, is
unassigned and available to fund ongoing activities. Compared to 2019, total governmental fund balances
increased by $5.1 million. This increase reflects the net effect of a general improvement in the regional economy
and continued vigilance in monitoring general spending.
• Total City debt payments during the year, net of compensated absences and other post-employment benefits,
were $7.5 million. Total long-term liabilities, including bonds and loans, totaled $116.7 million at December
31, 2020. The ending long-term liabilities is a decrease of $2.8 million from 2019 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: 2020 Annual Comprehensive Financial Report Management’s Discussion and Analysis
16
Other City Highlights:
Parks, Arts and Recreation
• Completed Auburn’s newest park, Lewis Lake Nature Park, named in honor of former Mayor Peter B. Lewis.
• Added four new pickle ball courts and ball field lighting at Game Farm Park.
• Successfully modified activities at the Senior Center, Museum, Recreation Center, and Teen Center in response
to COVID-19 by creating virtual recreation opportunities that were promoted through email, social media,
and the City’s website.
• Completed design and began construction to transition Auburn Historic Post Office and Auburn Alleyway into
an Arts & Culture Center and gathering space.
• The Auburn Golf Course celebrated its 50th Anniversary in 2020 and was rated one of the top courses in
Washington by Golf Advisor.
• Completed a 2” asphalt overlay on almost two miles of failing roadway at Mountain View Cemetery.
• Added 63 new cremation plots to the Forest Walk Cremation Garden at the cemetery.
Community Development Services
• Completed major updates to the City’s building codes, floodplain management codes, just cause eviction
standards, rezone standards, and wireless facility codes.
• The Department led the effort to launch the South King Housing and Homelessness Partners (SKHHP), a nine-
city partnership program designed to take a coordinated and comprehensive approach to increasing housing
stability and producing and preserving quality affordable housing in South King County.
• Processed 2,540 permits, representing more than $129 million in construction investments, and processed
approximately 800 business licenses, completed 5,923 inspections, completed 768 code enforcement cases, and
participated in more than 45,000 customer service interactions.
• Deployed more than $2 million in aid to non-profit agencies. This is more than double the amount typically
deployed and was in direct response to the array of impacts caused by COVID-19.
Engineering Services
• Managed street preservation programs that resulted in the average pavement condition index (PCI) of 75 for
City local streets and 61 for City collectors and arterials at the end of 2020, for an overall average of 68 and
completed improvements on 23 lane miles of roads.
• Adopted the ADA Transition Plan for Public right of way.
• Developed and Executed a Memorandum of Understanding with the Muckleshoot Indian Tribe to form a
partnership for implementing improvements along the Auburn Way South (SR-164) corridor.
• Managed 23 capital construction projects totaling over $32 million in public infrastructure improvements to
streets and utility systems including the conversion of 2,849 City owned streetlights to LED with a sensor
monitoring system.
• 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: 2020 Annual Comprehensive Financial Report Management’s Discussion and Analysis
17
Maintenance & Operations Services
• Completed 23,922 individual work tasks covering all aspects of Water, Sewer, Storm Drainage, Street and
Fleet maintenance efforts.
• Due to budget impacts from the pandemic, refreshed only critical striping needs on public roads (overseen by
Engineering and completed by contract).
• Performed uni-directional flushing on the water system totaling 95,594 feet of main lines.
• Completed cleaning of 98,120 feet of sanitary sewer main lines.
• Completed sweeping of 8,441 lane miles of city streets.
• Completed 438 services on city fleet vehicles.
Airport Services
• Completed the WSDOT Aviation Economic Impact Study, revealing that the Auburn Municipal Airport
creates:
o 232 jobs
o $14.2 million labor income
o $24 million value added
o $43.1 million business revenues
• Completed a significant upgrade of the airport by extending the runway 441 feet, installed new LED runway
lights and signage, and undergrounded a detention pond, increasing safety by removing a wildlife attractant.
• Upgraded all electronic drive-through gates and card reader system and distributed new gate cards to over
500 airport users.
• Executed an agreement with Cascade Helicopters to resale Jet A fuel on the airport.
• Updated the Comprehensive plan related to the Airport and began modifications of the zoning around the
airport to be more compatible for the community and allow for greater airport protection including an
airport influence area map with safety zones.
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
City of Auburn: 2020 Annual Comprehensive Financial Report Management’s Discussion and Analysis
18
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 expenditures for those functions to show how much each function either supports itself or relies on
taxes and other general funding sources for support. All activity on this statement is reported on the accrual basis of
accounting, requiring that revenues are reported when they are earned and 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.
City of Auburn: 2020 Annual Comprehensive Financial Report Management’s Discussion and Analysis
19
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.
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.
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.
City of Auburn: 2020 Annual Comprehensive Financial Report Management’s Discussion and Analysis
20
The combining statements referred to earlier in connection with nonmajor governmental funds, nonmajor enterprise
funds, and internal service funds are presented in the section titled “Fund Financial Statements and Schedules”.
Government-wide Financial Analysis
The statement of net position may serve as a useful indicator of the City’s financial position. The overall financial
position has improved for the City of Auburn over the prior year. Changes in Net Position from 2019 to 2020 show an
increase in total net position of $19.2 million or 2.6%. Following is a condensed version of the government-wide
statement of net position with a comparison to 2019:
The largest component of the City’s net position, $581.3 million, or 76.8% 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, $67.8 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, $63.5 million, represents the unrestricted net position of the City’s
business-type activities and may only be spent on activities related to one of the four City utilities (water, sanitary sewer,
storm water and solid waste) or to the City-owned ventures (airport and cemetery). Examples of utility activities include
maintenance of water/sewer mains, pump and lift stations, storm drain flushing, water meter reading, and garbage
collection. Activities related to the other City-owned ventures include maintenance of hangars and runways at the
airport, and grooming and landscaping at the cemetery.
As of 12/31/20 As of 12/31/19 As of 12/31/20 As of 12/31/19 As of 12/31/20 As of 12/31/19
Current and other assets 153,167,102$ 151,098,544$ 87,940,885$ 71,636,428$ 241,107,987$ 222,734,972$
Capital assets, net of
accumulated depreciation 398,828,178 401,223,007 247,197,406 238,962,392 646,025,584 640,185,399
Total assets 551,995,280 552,321,551 335,138,291 310,598,820 887,133,571 862,920,371
Deferred Outflows of Resources 4,280,751 2,732,297 1,102,421 858,180 5,383,172 3,590,477
Long-term liabilities 67,386,700 67,950,863 42,440,292 30,624,946 109,826,992 98,575,809
Other liabilities 12,151,733 13,059,290 8,985,341 8,011,637 21,137,074 21,070,927
Total liabilities 79,538,433 81,010,153 51,425,633 38,636,583 130,964,066 119,646,736
Deferred Inflows of Resources 3,608,197 7,404,879 1,018,337 1,718,451 4,626,534 9,123,330
Net position
Net investment in capital assets 372,441,433 372,887,236 208,850,752 212,172,136 581,292,185 585,059,372
Restricted for:
Capital Projects 29,391,156 30,407,688 - - 29,391,156 30,407,688
Nonexpendable Permanent Endowment 1,925,183 1,826,063 - - 1,925,183 1,826,063
Debt Service 2,873 1,917 11,032,826 1,564,892 11,035,699 1,566,809
Tourist Promotion 315,807 249,186 - - 315,807 249,186
Drug Investigation & Enforce 998,267 1,252,739 - - 998,267 1,252,739
Comm Dev Block Grant 42,325 42,904 - - 42,325 42,904
Central Business Distr Dev 166,486 130,916 - - 166,486 130,916
Rate Stabilization - - 438,483 436,817 438,483 436,817
Unrestricted 67,845,872 59,840,168 63,474,681 56,928,121 131,320,553 116,768,289
Total net position 473,129,402$ 466,638,817 283,796,742$ 271,101,966$ 756,926,144$ 737,740,783$
Governmental Activities Business-type Activities Total
STATEMENT OF NET POSITION
Comparative Analysis of 2020 and 2019
City of Auburn: 2020 Annual Comprehensive Financial Report Management’s Discussion and Analysis
21
Restricted governmental fund net position is $32.8 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
decreased by $3.8 million.
Changes in Net Position
The change in net position represents the increase or decrease in City net position resulting from its various activities.
Following is a condensed version of the City’s changes in net position. The table shows the revenues, expenditures and
related changes in net position for both governmental-type and business-type activities:
2020 2019 2020 2019 2020 2019
Revenues:
Program revenues
Charges for services 12,487,875$ 16,621,946$ 68,966,638$ 70,315,493$ 81,454,513$ 86,937,439$
Operating grants and contributions 6,904,118 3,394,916 106,286 106,286 7,010,404 3,501,202
Capital grants and contributions 9,455,065 6,461,827 6,518,995 6,686,288 15,974,060 13,148,116
General revenues
Property taxes 22,721,452 22,075,276 - - 22,721,452 22,075,276
Sales taxes 21,900,597 22,212,601 - - 21,900,597 22,212,601
Interfund utility taxes 4,543,436 4,760,229 - - 4,543,436 4,760,229
Admission & utility taxes 8,866,275 9,278,114 - - 8,866,275 9,278,114
Excise taxes 4,580,114 5,650,339 - - 4,580,114 5,650,339
Other taxes 3,846,314 4,751,163 - - 3,846,314 4,751,163
Investment earnings 1,027,312 2,134,741 364,027 1,387,405 1,391,339 3,522,146
Miscellaneous revenue 252,441 258,502 3,267,467 1,218,645 3,519,908 1,477,146
Total revenues 96,584,999 97,599,653 79,223,413 79,714,117 175,808,412 177,313,770
Expenses:
General government 12,332,380 13,292,724 - - 12,332,380 13,292,724
Public safety 37,951,994 24,016,496 - - 37,951,994 24,016,496
Transportation 17,781,630 17,709,231 - - 17,781,630 17,709,231
Physical environment 3,981,592 3,981,499 - - 3,981,592 3,981,499
Culture and recreation 11,681,611 13,400,311 - - 11,681,611 13,400,311
Economic environment 5,308,106 4,457,626 - - 5,308,106 4,457,626
Health and human services 671,257 619,247 - - 671,257 619,247
Interest on long-term debt 650,215 1,466,217 - - 650,215 1,466,217
Water - - 13,253,694 13,023,888 13,253,694 13,023,888
Sanitary sewer - - 26,004,990 26,907,482 26,004,990 26,907,482
Storm drainage - - 8,780,867 9,126,096 8,780,867 9,126,096
Solid waste - - 15,620,963 15,682,121 15,620,963 15,682,121
Other business-type activities - - 2,603,752 2,628,203 2,603,752 2,628,203
Total expenses 90,358,785 78,943,351 66,264,266 67,367,790 156,623,051 146,311,141
Increase in net position before transfers 6,226,214 18,656,303 12,959,147 12,346,327 19,185,361 31,002,630
Transfers 264,371 394,287 (264,371) (394,287) - -
Change in net position 6,490,585 19,050,590 12,694,776 11,952,040 19,185,361 31,002,630
Net Position, January 1, as Previously Reported 466,638,817 447,588,227 271,101,966 259,149,926 737,740,783 706,738,153
Net position, December 31 473,129,402$ 466,638,817$ 283,796,742$ 271,101,966$ 756,926,144$ 737,740,783$
CHANGES IN NET POSITION
Comparative Analysis of 2020 and 2019
Governmental Activities Business-type Activities Total
City of Auburn: 2020 Annual Comprehensive Financial Report Management’s Discussion and Analysis
22
Governmental activities contributed $6.5 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.
General tax revenues decreased by 3.3% to $66.5 million between 2019 and 2020, compared to an increase of 1.8%
between 2018 and 2019:
• Property tax revenue increased $0.6 million or 2.9%.
• Sales tax collections decreased $0.3 million or 1.4%, due largely to the effects of the COVID-19 pandemic.
• Utility and admission tax revenue decreased by $0.6 million or 4.5%.
• Excise tax revenue decreased by $1.1 million or 18.9%.
Investment earnings decreased by $1.1 million in governmental activities and $1.0 million in business-type activities for
a government-wide decrease of $2.1 million. Government-wide miscellaneous revenue increased by $1.9 million to $3.4
million.
Government-wide expenses increased by approximately $10.2 million or 7.0% largely due to salaries and benefits 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 Services
13%
Capital Grants &
Contributions
10%
Operating Grants &
Contributions
7%
Property Taxes
23%
Sales Taxes
23%
Interfund Utility Taxes
5%
Utility & Admission Taxes
9%
Other Taxes
9%
Other Revenue
1%
City of Auburn: 2020 Annual Comprehensive Financial Report Management’s Discussion and Analysis
23
Program Expenses and Revenues – Governmental Activities
Business-type net position totaled $283.8 million, an increase of 4.7%. Key components of this increase include:
• Business-type revenues decreased by $0.5 million to $79.2 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:
• Net transfers totaled ($264,371).
$0
$5
$10
$15
$20
$25
$30
$35
$40
Millions Program Revenues
Expenses
Water fund:1,792,061$
Sanitary sewer fund:(574,785)
Storm fund:1,808,661
Solid waste fund:(38,121)
Non-major funds:3,368,053
Total 6,355,869$
City of Auburn: 2020 Annual Comprehensive Financial Report 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
Water
33.1%
Sanitary Sewer
33.2%
Storm Drainage
26.2%
Solid Waste
2.0%
Airport
4.6%
Cemetery
0.8%
$0
$10
$20
$30
$40
$50
$60
$70
$80
$90
$100
Water Sanitary Sewer Storm Drainage Solid WasteMillions Spendable Net Position
Total Net Position
City of Auburn: 2020 Annual Comprehensive Financial Report 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
$14
Airport CemeteryMillions Spendable Net Position
Total Net Position
$0
$2
$3
$5
$6
$8
$9
$11
$12
$14
$15
$17
$18
$20
$21
$23
$24
$26
$27
$29
$30
Water Sanitary Sewer Storm Drainage Solid Waste Minor Business-
Type ActivitiesMillions Revenues
Expenses
City of Auburn: 2020 Annual Comprehensive Financial Report 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, 2020, the City’s governmental funds had combined fund balances of $80.6 million, an increase of
$5.1 million or 6.7% over the previous year. This change was primarily a result of changes in fund balances in the City’s
general fund ($5.7 million), with changes to fund balances in other funds largely netting out.
The following table shows the changes in fund balance between 2019 and 2020.
Changes in Fund Balance - By Fund
Of the government funds’ total fund balances, $30.6 million is unassigned. Nonspendable, restricted, committed and
assigned fund balances total $50.0 million. Of this, $12.6 million is earmarked for capital projects, $24.2 million is in
special revenue funds that are earmarked for specific purposes and $1.9 million is for endowment.
Charges for Services
85.8%
Capital
Contributions
8.2%
Investment Earnings
0.5%
Business-type
Miscellaneous Income
5.5%
2020 2019 Difference
General Fund 41,939,224$ 36,223,116$ 5,716,108$
Arterial Street Fund 2,284,075 1,970,223 313,852
Capital Improvement Fund 10,284,327 13,803,767 (3,519,440)
Mitigation Fund 14,417,022 14,104,088 312,934
Cemetery Endowment Fund 2,022,262 1,989,046 33,216
All Other Government Funds 9,651,240 7,455,998 2,195,242
Total 80,598,150$ 75,546,238$ 5,051,912$
City of Auburn: 2020 Annual Comprehensive Financial Report Management’s Discussion and Analysis
27
The following chart shows the relative fund balances for governmental funds:
Governmental Funds – Fund Balances
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 2020, the general fund
had a fund balance of $41.9 million, $11.3 million of which is assigned, and $30.6 million is unassigned. The general
fund balance increased by $5.7 million from the prior year. Revenues increased by approximately $4.2 million; at the
same time, expenditures decreased by about $1.4 million from 2019 levels due largely to temporary cost cutting in
response to the COVID-19 pandemic. The increase in the City’s general fund between 2019 and 2020 was the net of:
• Receipt of one-time CARES Act grant revenues in 2020 $ 3.8 million
• A one-time transfer in from the Cumulative Reserve Fund in 2020 2.0 million
• Increased utility taxes due to rate increases implemented in 2020 1.6 million
• Increased property tax revenues due mainly to new construction 0.5 million
• Loss of Streamlined Sales Tax revenues in 2020 ( 0.8 million)
• Reduced Parks revenues due mainly to COVID-19 impacts ( 1.0 million)
• Reduced permit revenues due in part to COVID-19 impacts ( 0.8 million)
• Expiration of the sales tax credit for annexation in 2020 ( 0.4 million)
• Changes in other revenues (net) ( 0.7 million)
• Reductions in salary and benefit costs, mostly in Parks due to COVID 0.8 million
• Reduced service-related expenditures mainly due to COVID impacts 0.4 million
• Reduced interfund charges, mostly printing costs, due largely to COVID 0.2 million
Other funds that had significant fund balances include:
• $14.4 million in the mitigation fund, which accounts for various impact and mitigation fees that are ultimately
used for capital projects. The fund increased by about $0.3 million between 2019 and 2020 primarily due to
higher than expected parks and transportation impact fees.
General Fund
52%
Arterial Street Fund
3%
Capital Improvement
Fund
13%
Mitigation Fund
18%
Cemetery
Endowment Fund
2%
All Other
Government Funds
12%
City of Auburn: 2020 Annual Comprehensive Financial Report Management’s Discussion and Analysis
28
• $10.3 million in the capital improvement projects fund, used for various governmental capital asset projects.
The fund balance decreased by $3.5 million due primarily to transfers of real estate excise tax (REET) receipts
to other funds for use on streets and other projects.
• $14.0 million in all other government funds, used primarily for arterial and local street improvements, local
revitalization funding, and cemetery maintenance. These funds – in aggregate – increased by about $2.5 million
largely due to lower than expected spending on street projects.
General fund revenue increased by $2.1 million, sources of which are shown in the chart below. Property taxes increased
by $0.5 million while sales taxes decreased by $0.3 million from 2019. Over the same period, utility and other taxes
increased by a net of $1.0 million, Licenses and permits decreased by $0.7 million, charges for services decreased by $1.2
million (largely due to COVID impacts on services in 2020), fines & forfeitures decreased by $0.3 million,
intergovernmental revenues increased by $3.9 million (due to one-time CARES Act monies in 2020), and miscellaneous
revenues decreased by $0.8 million.
2020 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
$0.5M
Sales Taxes
-$0.3M
Interfund
Utility Taxes
$0.5M
Utility &
Other Taxes
$0.6M
Licenses &
Permits
-$0.7M
Charges for Services
-$1.2M
Fines &
Forfeitures
-$0.3M
Intergovernmental
$3.9M
Miscellaneous
-$0.8M
($1.5)
($1.0)
($0.5)
$0.0
$0.5
$1.0
$1.5
$2.0
$2.5
$3.0
$3.5
$4.0
$4.5
Millions
City of Auburn: 2020 Annual Comprehensive Financial Report 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
2020 budget included:
• Budgeted general fund expenditures and transfers out increased from $80.6 million to $85.4 million. Significant
changes include expenditures associated with new grants, CARES Act funding, and salary and benefit
adjustments, net of reductions related to the COVID-19 pandemic.
Reasons for the variances in the general fund between the final budget and actual results include:
• Actual general fund revenues totaled $80.3 million, or 4.9% above budget. Significant areas of favorable
variance include sales and use taxes, which exceeded budget by $3.4 million; property taxes, which exceeded
budget by $445,000; and greens fees, which were $512,000 above budget. Areas of unfavorable variance
include investment income, which was $303,000 below budget, and cable TV franchise fees, which were
$228,000 under budget. In addition, a planned one-time $2.0 million transfer in from the cumulative reserve
fund was not made due to better-than-expected revenues and planned and other cost savings.
• Actual general fund expenditures totaled $72.7 million and were under budget by $12.8 million. Departments
experienced savings due to planned cost reductions in response to the COVID-19 pandemic as well as 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, 2020
totaled $646.0 million (net of accumulated depreciation), an increase of $5.8 million from 2019. This investment in
capital assets includes land, buildings, improvements, machinery and equipment, construction in progress, utility
transmission/distribution systems, roads, bridges, and other infrastructure.
Major capital asset changes during the year include:
• Developer contributions resulted in an increase of $5.1 million in utility infrastructure assets and $4.0 million in
governmental infrastructure assets.
• $13.3 million was spent by proprietary funds on construction projects during the year.
• $9.4 million was spent by governmental funds on construction projects during the year. Some of the larger
projects in the governmental funds include:
$1.9 million for City street light LED retrofits
$1.4 million for F Street SE non-motorized improvements
$0.9 million on Auburn Way North preservation, Phase 3
$0.7 million on local street Reconstruction
$0.5 million on Lake Tapps Parkway ITS expansion
$0.4 million for Game Farm Park improvements
$0.4 million on the A Street SE preservation project
City of Auburn: 2020 Annual Comprehensive Financial Report 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 $68.6 million. Of this amount,
$17.2 million is due to other governments, $20.1 million is general obligation bonds, and $31.4 million is revenue bonds
for the water, sewer and storm utilities. The City currently maintains a rating of Aa3 with Moody’s and a rating of AA+
with Standard & Poor’s for its general obligation debt.
The following schedule summarizes the City’s bonded debt:
Below is a summary of additional, non-bonded long-term debt of the City:
Washington State law limits the amount of general obligation debt a governmental entity may issue to 7.5% of its total
assessed value. Of the 7.5% limit, 2.5% is for general purposes, 2.5% is for open spaces/parks, and 2.5% is for utilities.
Non-voted (limited tax) general obligation indebtedness is limited to 1.5% of assessed valuation. The combination of
unlimited tax and limited tax general obligation debt for all purposes cannot exceed 7.5% of assessed valuation.
Additional information can be found in note 9 and in the statistical section of this report.
Summary of Capital Assets (net of depreciation)
As of 12/31/20 As of 12/31/2019 As of 12/31/20 As of 12/31/2019 As of 12/31/20 As of 12/31/2019
Land 109,092,633$ 108,893,205$ 12,931,692$ 12,543,322$ 122,024,325$ 121,436,527$
Building 49,646,506 50,732,565 1,681,201 1,790,725 51,327,707 52,523,290
Site improvements 9,061,716 9,656,970 219,562,980 213,327,058 228,624,696 222,984,028
Equipment 9,457,382 8,915,018 259,087 268,881 9,716,469 9,183,899
Intangibles (371,841) (263,198) 6,889,163 5,954,358 6,517,322 5,691,160
Infrastructure 211,948,389 216,774,848 - - 211,948,389 216,774,848
Construction in progress 9,993,393 6,513,599 5,873,283 5,078,048 15,866,676 11,591,647
398,828,178$ 401,223,007$ 247,197,406$ 238,962,392$ 646,025,584$ 640,185,399$
Governmental Activities Business-type Activities Total
Summary of Bonded Debt
Governmental
Activities
Business-type
Activities Total
General obligation bonds 20,055,569$ -$ 20,055,569$
Revenue bonds - 31,370,000 31,370,000
Due to other governments 17,200,962$ - 17,200,962
37,256,531$ 31,370,000$ 68,626,531$
Other Long-Term Debt
Public Works Trust Fund loans 7,451,135$
Capital Leases -
7,451,135$
City of Auburn: 2020 Annual Comprehensive Financial Report Management’s Discussion and Analysis
31
Economic Factors
The past year was significantly impacted by the COVID-19 pandemic, which affected both revenues and expenditures.
The impacts were somewhat less than expected due to specific actions taken by the City including instituting a temporary
hiring freeze and the temporary reductions in certain City programs. At the same time, some economic conditions
continued to improve locally. Real property values, which had finally recovered to pre-recession levels by 2016, grew
an additional 6.6% in 2020, property tax receipts grew by 2.5%, and retail sales tax receipts were 0.7% above the
adopted budget despite the expected effects of the pandemic on retail sales. On the other hand, some revenue sources
were significantly lower in 2020 than in 2019; for example, building permit revenues decreased by 32.2% reflecting
greatly reduced construction activity relative to 2019.
The impact of the pandemic on general economic conditions in the region is expected to be temporary and the economic
outlook for the City is generally positive. However, significant challenges to the City’s overall financial condition remain.
In particular, 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: 2020 Annual Comprehensive Financial Report Management’s Discussion and Analysis
32
City of Auburn: 2020 Annual Comprehensive Financial Report 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, liabilities, and deferred outflows/inflows of
resources with the net difference 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. The governmental activities are principally supported by
taxes and intergovernmental revenues. The business-type activities are intended to recover all, or a
significant portion, of their costs through user fees and charges.
City of Auburn: 2020 Annual Comprehensive Financial Report Basic Financial Statements
34
City of Auburn: 2020 Annual Comprehensive Financial Report Basic Financial Statements
35
Governmental Business-Type
Activities Activities Total
ASSETS:
Cash and Cash Equivalents (Note 3)61,955,611$ 52,026,229$ 113,981,840$
Investments (Note 3)10,172,599 7,251,335 17,423,934
Receivables
Taxes 344,510 - 344,510
Customer Accounts 1,071,997 10,557,254 11,629,251
Other Receivables 2,269,362 19,200 2,288,562
Special Assessments 892 - 892
Due From Other Governmental Units (Note 6)3,465,628 645,200 4,110,828
Internal Balances 136,927 (136,927) -
Materials and Supplies Inventory 362,261 272,824 635,085
Restricted Assets:
Temporarily Restricted:
Cash and Cash Equivalents (Note 3)21,762,411 16,682,370 38,444,781
Due From Other Governmental Units (Note 6)2,614,849 - 2,614,849
Permanently Restricted:
Cash and Cash Equivalents (Note 3)1,925,183 - 1,925,183
Prepaids 218,708 - 218,708
Long-Term Contracts and Notes - 623,400 623,400
Net Pension Asset (Note 9)9,463,432 - 9,463,432
Investment in Joint Ventures (Note 14)37,402,732 - 37,402,732
Depreciable Capital Assets (Net of Accumulated Depreciation) (Note 7)279,742,152 221,503,268 501,245,420
Non-Depreciable Capital Assets (Note 7)119,086,026 25,694,138 144,780,164
Total Assets 551,995,280 335,138,291 887,133,571
DEFERRED OUTFLOWS OF RESOURCES:
Deferred Outflows from Bond Refunding 572,588 142,317 714,905
Deferred Outflows related to Pensions (Note 9)3,708,163 960,104 4,668,267
Total Deferred Outflow of Resources 4,280,751 1,102,421 5,383,172
LIABILITIES:
Accounts Payable 7,932,748 4,122,125 12,054,873
Other Liabilities Payable 443,532 - 443,532
Payable From Restricted Assets:
Accrued Interest - 1,554,539 1,554,539
Deposits - 253,433 253,433
Bonds and Other Debt Payable:
Due Within One Year (Note 8)3,132,557 3,055,244 6,187,801
Due in More Than One Year (Note 8)26,405,104 39,340,196 65,745,300
Due to Other Governmental Units:
Due Within One Year (Note 8)642,896 - 642,896
Due in More Than One Year (Note 8)16,558,066 - 16,558,066
Other Non-Current Liabilities:
Net Penion Liability (Note 9)6,075,671 3,100,096 9,175,767
Total Firemen's Pension Liability (Note 9)3,562,986 - 3,562,986
Total OPEB Liability (Note 10)14,784,873 - 14,784,873
Total Liabilities 79,538,433 51,425,633 130,964,066
DEFERRED INFLOWS OF RESOURCES:
Deferred Inflows related to Pensions (Note 9)3,608,197 1,018,337 4,626,534
Total Deferred Inflows of Resources 3,608,197 1,018,337 4,626,534
NET POSITION
Net Investment in Capital Assets 372,441,433 208,850,752 581,292,185
Restricted:
Capital Projects 29,391,156 - 29,391,156
Nonexpendable Permanent Endowment 1,925,183 - 1,925,183
Debt Service 2,873 11,032,826 11,035,699
Tourist Promotion 315,807 - 315,807
Drug Investigation and Enforcement 998,267 - 998,267
Community Development Block Grant Program 42,325 - 42,325
Central Business District Development 166,486 - 166,486
Rate Stabilization - 438,483 438,483
Unrestricted 67,845,872 63,474,681 131,320,553
Total Net Position 473,129,402$ 283,796,742$ 756,926,144$
The notes to the basic financial statements are an integral part of this statement.
Primary Government
City of Auburn, Washington
STATEMENT OF NET POSITION
December 31, 2020
City of Auburn: 2020 Annual Comprehensive Financial Report 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 12,332,380$ 3,584,821$ 4,015,236$ 174,488$
Public Safety 37,951,994 2,146,428 2,405,298 18,262
Transportation 17,781,630 2,103,258 - 7,229,940
Physical Environment 3,981,592 671,543 - 338,998
Culture and Recreation 11,681,611 2,191,540 76,337 719,653
Economic Environment 5,308,106 1,790,286 405,299 431,996
Health and Human Resources 671,257 - 1,948 541,728
Interest on Long-Term Debt 650,215 - - -
90,358,785 12,487,875 6,904,118 9,455,065
Business-Type Activities
Water 13,253,694 14,847,514 - 2,170,407
Sanitary Sewer 26,004,990 25,357,477 - 2,801,816
Storm Drainage 8,780,867 10,301,049 - 1,546,772
Solid Waste 15,620,963 15,489,525 - -
Nonmajor Business-Type Activities 2,603,752 2,971,073 - -
66,264,266 68,966,638 - 6,518,995
Total Primary Government 156,623,051$ 81,454,513$ 6,904,118$ 15,974,060$
General Revenues:
Taxes:
Property
Retail Sales and Use
Interfund Utility
Utility
Excise
Other
Investment Earnings
Other Revenues
Gain on Sale of Capital Assets
Contributions to Endowment Funds
Transfers (Note 5)
Total General Revenues
Change in Net Position
Net Position, January 1
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, 2020
Page 1 of 2
City of Auburn: 2020 Annual Comprehensive Financial Report Basic Financial Statements
37
Governmental Business-Type
Activities Activity Total
(4,557,835)$ -$ (4,557,835)$
(33,382,006) - (33,382,006)
(8,448,432) - (8,448,432)
(2,971,051) - (2,971,051)
(8,694,081) - (8,694,081)
(2,680,525) - (2,680,525)
(127,581) - (127,581)
(650,215) - (650,215)
(61,511,727) - (61,511,727)
- 3,764,227 3,764,227
- 2,154,303 2,154,303
- 3,066,954 3,066,954
- (131,438) (131,438)
- 367,321 367,321
- 9,221,367 9,221,367
(61,511,727)$ 9,221,367$ (52,290,360)$
22,721,452$ -$ 22,721,452$
21,900,597 - 21,900,597
4,543,436 - 4,543,436
8,866,275 - 8,866,275
4,580,114 - 4,580,114
3,846,314 - 3,846,314
1,027,312 364,027 1,391,339
189,322 3,371,554 3,560,876
- 2,199 2,199
63,119 - 63,119
264,371 (264,371) -
68,002,312 3,473,409 71,475,721
6,490,585 12,694,776 19,185,361
466,638,817 271,101,966 737,740,783
473,129,402$ 283,796,742$ 756,926,144$
Changes in Net Position
Net (Expense) Revenue and
Page 2 of 2
City of Auburn: 2020 Annual Comprehensive Financial Report Basic Financial Statements
38
City of Auburn: 2020 Annual Comprehensive Financial Report 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: 2020 Annual Comprehensive Financial Report Basic Financial Statements
40
Other Total
General Arterial Capital Governmental Governmental
Fund Street Improvement Funds Funds
ASSETS:
Cash and Cash Equivalents 31,359,126$ 1,260,995$ 9,642,042$ 25,840,836$ 68,102,999$
Investments (Note 3)9,097,582 - 1,075,017 - 10,172,599
Receivables:
Taxes 344,510 - - - 344,510
Customer Accounts 382,266 38,050 64,850 465,738 950,904
Other Receivables 2,262,822 - - - 2,262,822
Special Assessments - - - 892 892
Interfund Receivable (Note 5)525,000 - - - 525,000
Inventories 47,085 - - - 47,085
Due From Other Governmental Units (Note 6)3,292,404 1,512,703 487,860 614,286 5,907,253
Total Assets 47,310,795 2,811,748 11,269,769 26,921,752 88,314,064
LIABILITIES, DEFERRED INFLOWS AND FUND BALANCES:
Liabilities:
Current Payables 3,743,768 527,673 985,442 730,336 5,987,219
Customer Deposits 219,768 - - - 219,768
Interfund Payable (Note 5)- - - 100,000 100,000
Other Liabilities Payable 88,965 - - - 88,965
Total Liabilities 4,052,501 527,673 985,442 830,336 6,395,952
Deferred Inflow of Resources:
Unavailable Revenue-Special Assessments - - - 892 892
Unavailable Revenue-Other 1,319,070 - - - 1,319,070
Total Deferred Inflow of Resources 1,319,070 - - 892 1,319,962
Fund Balances: (Note 1)
Nonspendable 47,085 - - - 47,085
Nonspendable Permanent Endowment - - - 1,925,183 1,925,183
Restricted - 2,284,075 9,230,527 19,402,312 30,916,914
Committed - - - 3,910,112 3,910,112
Assigned 11,257,547 - 1,053,800 852,917 13,164,264
Unassigned 30,634,592 - - - 30,634,592
Total Fund Balances:41,939,224 2,284,075 10,284,327 26,090,524 80,598,150
Total Liabilities, Deferred Inflows and Fund Balances 47,310,795$ 2,811,748$ 11,269,769$ 26,921,752$ 88,314,064$
The notes to the basic financial statements are an integral part of this statement.
City of Auburn, Washington
BALANCE SHEET
GOVERNMENTAL FUNDS
December 31, 2020
City of Auburn: 2020 Annual Comprehensive Financial Report Basic Financial Statements
41
Total governmental fund balances as reported on this statement 80,598,150$
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 389,711,693
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 20,201,770
Prepaids 218,708
Interest receivable on investments 6,540
Net pension asset 5,900,446
26,327,464
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 1,319,070
Unavailabe revenue reported for special assessments 892
1,319,962
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 23,827,028
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 (23,155,487)
Premium on Bonds Payable (3,803,846)
Deferred amount on bond refunding 572,588
Deferred amounts related to pensions 94,631
Interest payable (134,799)
Net pension liability (5,205,385)
Net other postemployment obligations (14,784,873)
Compensated absences payable (2,237,724)
(48,654,895)
Net position of government activities as reported on the statement of net position 473,129,402$
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, 2020
City of Auburn, Washington
City of Auburn: 2020 Annual Comprehensive Financial Report Basic Financial Statements
42
Other Total
General Arterial Capital Governmental Governmental
Fund Street Improvement Funds Funds
REVENUES:
Taxes:
Property 22,445,340$ -$ -$ 243,356$ 22,688,696$
Retail Sales & Use 21,640,079 - - 260,518 21,900,597
Interfund Utility 4,543,436 - - - 4,543,436
Utility 8,866,275 - - - 8,866,275
Excise 292,676 - 4,184,571 102,867 4,580,114
Other - - - 59,875 59,875
Licenses and Permits 2,086,579 - - - 2,086,579
Intergovernmental 10,110,661 1,675,682 501,264 2,446,730 14,734,337
Charges for Services 6,296,714 194,065 32,160 2,147,139 8,670,078
Fines and Forfeitures 635,209 - - - 635,209
Special Assessments - - - 712 712
Investment Earnings 777,115 7,660 104,584 115,816 1,005,175
Miscellaneous 625,912 - 14,850 133,249 774,011
Total Revenues 78,319,996 1,877,407 4,837,429 5,510,262 90,545,094
EXPENDITURES:
Current:
General Government 11,950,179 - - 1,051 11,951,230
Security of Persons and Property 36,442,770 - - 347,578 36,790,348
Physical Environment 4,339,008 - - - 4,339,008
Transportation 3,546,403 3,045,200 - 3,511,345 10,102,948
Economic Environment 4,792,818 - - 794,779 5,587,597
Health and Human Services 821,362 - - - 821,362
Culture and Recreation 10,571,483 - - - 10,571,483
Debt Service:
Principal 5,602 197,376 - 1,535,616 1,738,594
Interest and Other Costs 1,214 10,051 - 811,413 822,678
Capital Outlay 1,740 - 2,479,972 1,262,096 3,743,808
Total Expenditures 72,472,579 3,252,627 2,479,972 8,263,878 86,469,056
Excess (Deficiency) of Revenues
Over (Under) Expenditures 5,847,417 (1,375,220) 2,357,457 (2,753,616) 4,076,038
OTHER FINANCING SOURCES (USES):
Insurance Recoveries 189,322 - - - 189,322
Issuance of Refunding Bond - - - 19,480,000 19,480,000
Debt Premium - - - 3,989,749 3,989,749
Payment to Escrow Agent - Refunded Bond - - - (23,469,749) (23,469,749)
Transfers In (Note 5)2,081,527 1,689,072 66,812 8,379,367 12,216,778
Transfers Out (Note 5)(2,402,158) - (5,943,709) (3,084,359) (11,430,226)
Total Other Financing Sources and Uses (131,309) 1,689,072 (5,876,897) 5,295,008 975,874
Net Change in Fund Balances 5,716,108 313,852 (3,519,440) 2,541,392 5,051,912
Fund Balances - January 1, as Previously Reported 36,223,116 1,970,223 13,803,767 23,549,132 75,546,238
Fund Balances - Ending 41,939,224$ 2,284,075$ 10,284,327$ 26,090,524$ 80,598,150$
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, 2020
City of Auburn: 2020 Annual Comprehensive Financial Report Basic Financial Statements
43
Net change in fund balances per the Statement of Revenues, Expenditures and Changes in Fund Balance 5,051,912$
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 ($10,139,398)
exceeded depreciation ($17,021,529) in the current period.(6,882,131)
Certain Capital and Joint Venture activities do not use or provide current financial resources
but increase net position.82,134
Governmental funds report sales of assets as other financing sources while the Statement of Activities
reports only the gain or loss on sale of capital assets.(103,704)
Debt proceeds are reported as financing sources in governmental fund and thus contribute to the
change in fund balances. In the government-wide statements, however, issuing debt increases
long-term liabilities in the statement of net position and does not affect the statement of activities.
Issuance of new debt 0
Debt transferred from Cemetery Fund to governmental activities 0
Revenues in the Statement of Activities that do not provide current financial resources
are not reported as revenues in the funds:
Property taxes 32,756
Special assessments (838)
Other unavailable revenue 205,803
Amortization of bond premium 190,426
Investment interest receivable (35,492)
392,655
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.4,028,440
Repayment of the principal of long-term debt consumes the current financial resources of
governmental funds but has no effect on the net position. 1,732,992
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.545,710
Some expenses reported in the Statement of Activities do not require the use of current
financial resources and therefore are not reported as expenditures in governmental funds.
Amortization of debt issue costs 0
Amortization of prepaids (109,355)
Change in accrued interest payable (12,361)
Change in net pension obligation or asset 2,809,713
Change in net other postemployment benefits (1,082,514)
Change in compensated absences payable 37,094
1,642,577
Change in net position on the Statement of Activities 6,490,585$
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, 2020
City of Auburn: 2020 Annual Comprehensive Financial Report Basic Financial Statements
44
Variance with
Final Final Budget
Original Adopted Actual Positive
(GAAP Basis)(GAAP Basis)Results (Negative)
REVENUES:
Taxes:
Property 21,900,000$ 22,000,000$ 22,445,340$ 445,340$
Retail Sales & Use 21,295,000 17,878,000 21,640,079 3,762,079
Interfund Utility 4,123,000 4,521,700 4,543,436 21,736
Utility 8,334,300 8,719,700 8,866,275 146,575
Excise 253,800 133,100 292,676 159,576
Licenses and Permits 1,838,800 1,599,300 2,086,579 487,279
Intergovernmental 4,132,160 9,274,170 10,024,842 750,672
Charges for Services 7,106,780 6,073,300 6,296,714 223,414
Fines and Forfeitures 863,800 668,500 635,209 (33,291)
Investment Earnings 312,400 700,700 532,204 (168,496)
Miscellaneous 983,300 671,300 625,912 (45,388)
Total Revenues 71,143,340 72,239,770 77,989,266 5,749,496
EXPENDITURES:
Current:
General Government 13,375,920 14,503,244 11,950,179 2,553,065
Security of Persons and Property 39,279,831 42,008,801 36,240,908 5,767,893
Physical Environment 5,142,890 5,189,120 4,339,008 850,112
Transportation 3,987,177 3,861,077 3,546,403 314,674
Economic Environment 3,978,027 5,566,213 4,792,818 773,395
Health and Human Services 1,137,381 1,039,201 821,362 217,839
Culture and Recreation 13,212,346 12,649,716 10,571,483 2,078,233
Debt Service 79,400 79,400 6,816 72,584
Capital Outlay 10,000 10,000 1,740 8,260
Total Expenditures 80,202,972 84,906,772 72,270,717 12,636,055
Excess (Deficiency) of Revenues
Over (Under) Expenditures (9,059,632) (12,667,002) 5,718,549 18,385,551
OTHER FINANCING SOURCES (USES):
Insurance Recoveries 25,000 179,250 189,322 10,072
Transfers In (Note 5)4,081,527 4,081,527 2,081,527 (2,000,000)
Transfers Out (Note 5)(383,433) (521,133) (402,158) 118,975
Total Other Financing Sources and Uses 3,723,094 3,739,644 1,868,691 (1,870,953)
Net Change in Fund Balances (5,336,538) (8,927,358) 7,587,240 16,514,598
Fund Balances - Beginning 12,394,863 23,641,160 23,641,160 -
Fund Balances - Ending 7,058,325$ 14,713,802$ 31,228,400$ 16,514,598$
RECONCILIATION OF PERSPECTIVE DIFFERENCE BETWEEN BUDGETARY INFORMATION AND
GENERALLY ACCEPTED ACCOUNTING PRINCIPLES (GAAP):
The Cumulative Reserve Fund is combined with
the General Fund for purposes of GASB Statement 54 8,622,344
The Fire, Relief & Pension Fund is combined with
the General Fund for purposes of GASB Statement 73 2,088,480
Fund Balance - Ending (GAAP)41,939,224$
The notes to the basic financial statements are an integral part of this statement.
Budget Amounts
For the Year Ended December 31, 2020
City of Auburn, Washington
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
GENERAL FUND
City of Auburn: 2020 Annual Comprehensive Financial Report Basic Financial Statements
45
Variance with
Final Final Budget
Original Adopted Actual Positive
(GAAP Basis)(GAAP Basis)Results (Negative)
REVENUES:
Intergovernmental $3,156,200 $6,462,770 $1,675,682 ($4,787,088)
Charges for Services - - 194,065 194,065
Investment Earnings 26,800 11,600 7,660 (3,940)
Total Revenues 3,183,000 6,474,370 1,877,407 (4,596,963)
EXPENDITURES:
Current:
Transportation 3,788,300 10,973,146 3,045,200 7,927,946
Debt Service
Principal 197,400 197,400 197,376 24
Interest and Other Costs 10,200 10,200 10,051 149
Total Expenditures 3,995,900 11,180,746 3,252,627 7,928,119
Excess (Deficiency) of Revenues
Over (Under Expenditures (812,900) (4,706,376) (1,375,220) 3,331,156
OTHER FINANCING SOURCES (USES):
Transfers In (Note 5)511,600 3,370,194 1,689,072 (1,681,122)
Total Other Financing Sources and Uses 511,600 3,370,194 1,689,072 (1,681,122)
Net Change in Fund Balances (301,300) (1,336,182) 313,852 1,650,034
Fund Balances - Beginning 1,344,477 1,970,223 1,970,223 -
Fund Balances - Ending 1,043,177$ 634,041$ 2,284,075$ 1,650,034$
The notes to the basic financial statements are an integral part of this statement.
Budget Amounts
For the Year Ended December 31, 2020
City of Auburn, Washington
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
ARTERIAL STREET FUND
City of Auburn: 2020 Annual Comprehensive Financial Report Basic Financial Statements
46
City of Auburn: 2020 Annual Comprehensive Financial Report 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: 2020 Annual Comprehensive Financial Report 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 11,417,193$ 16,258,323$ 17,124,762$ 4,980,003$ 2,245,948$ 52,026,229$ 17,540,206$
Investments - 4,521,754 2,729,581 - - 7,251,335 -
Restricted Cash:
Bond Payments 2,334,270 451,161 679,184 - - 3,464,615 -
Customer Deposits 64,792 61,526 3,422 - 123,693 253,433 -
Other 11,586,722 295,639 1,081,961 - - 12,964,322 -
Customer Accounts 2,090,429 4,063,452 1,712,774 2,681,308 9,291 10,557,254 121,093
Other Receivables - 19,200 - - - 19,200 -
Due From Other Governmental Units - - 72,123 51,587 521,490 645,200 173,224
Inventories 233,015 13,117 8,745 - 17,947 272,824 315,176
Total Current Assets 27,726,421 25,684,172 23,412,552 7,712,898 2,918,369 87,454,412 18,149,699
Noncurrent Assets
Long-Term Contracts and Notes - 623,400 - - - 623,400 -
Capital Assets:
Land 1,283,524 1,695,023 5,937,014 - 4,016,131 12,931,692 -
Intangible - Water Rights 6,889,163 - - - - 6,889,163 -
Buildings and Equipment 2,509,599 1,304,180 282,111 496,617 4,085,867 8,678,374 28,492,833
Improvements Other Than Buildings 151,038,789 109,169,429 84,749,193 - 15,491,309 360,448,720 451,264
Construction in Progress 4,443,772 1,053,882 342,126 - 33,503 5,873,283 34,727
Less: Accumulated Depreciation (65,569,723) (38,457,317) (32,587,697) (496,617) (10,512,472) (147,623,826) (19,862,339)
Total Capital Assets (Net of A/D)100,595,124 74,765,197 58,722,747 - 13,114,338 247,197,406 9,116,485
Total Noncurrent Assets 100,595,124 75,388,597 58,722,747 - 13,114,338 247,820,806 9,116,485
Total Assets 128,321,545 101,072,769 82,135,299 7,712,898 16,032,707 335,275,218 27,266,184
DEFERRED OUTFLOW OF RESOURCES:
Deferred Outflow from Bond Refunding 78,146 34,939 29,232 - - 142,317 -
Deferred Outflow related to Pensions 334,033 208,339 309,222 49,420 59,090 960,104 342,520
412,179 243,278 338,454 49,420 59,090 1,102,421 342,520
LIABILITIES:
Current Liabilities:
Current Payables 1,015,566 895,896 305,576 1,784,981 120,106 4,122,125 1,013,529
Claims Payable (Incurred but not Reported)- - - - - - 932,000
Interfund Payables (Note 5)- - - - 425,000 425,000 -
Loans Payable - Current 478,000 288,262 - - - 766,262 -
Employee Leave Benefits - Current 122,116 105,009 156,429 23,202 22,226 428,982 250,120
Revenue Bonds Payable - Current 1,215,345 233,225 411,430 - - 1,860,000 -
Payable From Restricted Assets:
Accrued Interest 1,126,592 160,194 267,753 - - 1,554,539 -
Deposits 64,792 61,526 3,422 - 123,693 253,433 -
Total Current Liabilities 4,022,411 1,744,112 1,144,610 1,808,183 691,025 9,410,341 2,195,649
Noncurrent Liabilities
Employee Leave Benefits 44,176 37,988 56,590 8,394 8,041 155,189 90,483
Loans Payable 2,359,332 1,225,622 - - - 3,584,954 -
Revenue Bonds Payable 26,189,156 3,341,264 6,069,633 - - 35,600,053 -
Net Pension Liability 1,917,936 588,136 509,014 87,217 (2,207) 3,100,096 870,286
Total Noncurrent Liabilities 30,510,600 5,193,010 6,635,237 95,611 5,834 42,440,292 960,769
Total Liabilities 34,533,011 6,937,122 7,779,847 1,903,794 696,859 51,850,633 3,156,418
DEFERRED INFLOW OF RESOURCES:
Deferred Inflow related to Pensions 385,099 227,565 312,054 67,602 26,017 1,018,337 337,185
NET POSITION:
Net Investment in Capital Assets:72,687,561 70,127,985 52,920,868 - 13,114,338 208,850,752 9,116,485
Restricted for:
Debt Service 10,460,130 196,971 375,725 - - 11,032,826 -
Rate Stabilization - - 438,483 - - 438,483 -
Unrestricted 10,667,923 23,826,404 20,646,776 5,790,922 2,254,583 63,186,608 14,998,616
Total Net Position 93,815,614$ 94,151,360$ 74,381,852$ 5,790,922$ 15,368,921$ 283,508,669$ 24,115,101$
Adjustment to reflect the consolidation
of internal service funds related to
enterprise funds 288,073
Net position of business-type activities 283,796,742$
The notes to the basic financial statements are an integral part of this statement.
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
December 31, 2020
Enterprise Funds
City of Auburn: 2020 Annual Comprehensive Financial Report Basic Financial Statements
49
Governmental
Activities
Non-Major Total
Sanitary Storm Solid Enterprise Enterprise Internal
Water Sewer Drainage Waste Funds Funds Service Funds
OPERATING REVENUES:
Charges of Services 14,846,679$ 25,357,477$ 10,301,049$ 15,489,525$ 2,018,214$ 68,012,944$ 13,704,063$
Other Operating Revenue 835 - - - 952,859 953,694 262,963
Total Operating Revenue 14,847,514 25,357,477 10,301,049 15,489,525 2,971,073 68,966,638 13,967,026
OPERATING EXPENSES:
Operations & Maintenance 3,727,553 19,125,939 3,360,404 13,691,168 1,606,272 41,511,336 10,339,775
Administration 4,615,503 4,556,451 3,144,182 1,920,385 476,154 14,712,675 1,051,909
Depreciation / Amortization 3,774,956 2,337,347 2,120,788 9,410 451,066 8,693,567 1,751,618
Other Operating Expenses - - - - 22,826 22,826 -
Total Operating Expenses 12,118,012 26,019,737 8,625,374 15,620,963 2,556,318 64,940,404 13,143,302
Operating Income (Loss)2,729,502 (662,260) 1,675,675 (131,438) 414,755 4,026,234 823,724
NON-OPERATING REVENUE (EXPENSE):`
Interest Revenue 49,808 120,844 162,516 19,417 11,442 364,027 63,645
Other Non-Operating Revenue 148,433 36,167 125,963 73,900 2,987,091 3,371,554 263,915
Gain on Sale of Capital Assets - - - - 2,199 2,199 1,147
Interest Expense (910,452) (38,434) (129,471) - (34) (1,078,391) (257)
Other Non-Operating Expenses (225,230) (31,102) (26,022) - (47,400) (329,754) -
Total Non-Operating Revenue (Expense)(937,441) 87,475 132,986 93,317 2,953,298 2,329,635 328,450
Income (Loss) Before Contributions & Transfers 1,792,061 (574,785) 1,808,661 (38,121) 3,368,053 6,355,869 1,152,174
Capital Contribution 2,170,407 2,801,816 1,546,772 - - 6,518,995 -
Transfers In (Note 5)6,536,029 - - - 318,286 6,854,315 156,995
Transfers Out (Note 5)(6,643,340) (63,399) (137,399) (11,662) (262,886) (7,118,686) (679,176)
Change in Net Position 3,855,157 2,163,632 3,218,034 (49,783) 3,423,453 12,610,493 629,993
Net Position, January 1 89,960,457 91,987,728 71,163,818 5,840,705 11,945,468 270,898,176 23,485,108
Net Position, December 31 93,815,614$ 94,151,360$ 74,381,852$ 5,790,922$ 15,368,921$ 283,508,669$ 24,115,101$
Change in net position from this statement 12,610,493
Adjustment to reflect the consolidation of internal service fund
activities related to enterprise funds 84,283
Change in net position of business-type activities 12,694,776$
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, 2020
Enterprise Funds
City of Auburn: 2020 Annual Comprehensive Financial Report Basic Financial Statements
50
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 14,694,612$ 25,250,149$ 10,234,692$ 15,310,664$ 2,506,683$ 67,996,800$ 13,768,719$
Cash Paid to Suppliers for Goods & Services (4,496,107) (20,786,256) (3,035,148) (14,743,574) (1,109,535) (44,170,620) (6,692,659)
Cash Paid for Taxes - - - - (22,826) (22,826) -
Cash Paid to Employees (4,154,510) (2,674,507) (4,013,529) (466,438) (1,060,698) (12,369,682) (5,261,113)
Other Cash Received 55,961 - - - - 55,961 251,933
Other Non-Operating Revenue - - - - 16,892 16,892 -
Net Cash Provided (Used) by Operating Activities 6,099,956 1,789,386 3,186,015 100,652 330,516 11,506,525 2,066,880
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:
Interfund Loan Payable - - - - 413,373 413,373 -
Operating Grant 80,378 36,167 53,840 82,987 2,972,398 3,225,770 11,982
Transfers In 6,536,029 - - - 318,286 6,854,315 156,995
Transfers Out (6,643,340) (63,399) (137,399) (11,662) (262,886) (7,118,686) (679,176)
Net Cash Provided (Used) by Noncapital Financing Activities (26,933) (27,232) (83,559) 71,325 3,441,171 3,374,772 (510,199)
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES:
Proceeds from Sale of Equipment - - - - 1,851 1,851 59,130
Purchase of Capital Assets (6,637,721) (961,519) (577,017) - (3,696,252) (11,872,509) (2,372,165)
Contributed Capital 669,802 216,134 575,136 - - 1,461,072 -
Capital Grants - - - - - - -
Proceeds from Insurance Settlement 12,094 - - - - 12,094 -
Bond Issuance Costs (460,656) (136,359) (114,088) - - (711,103) -
Principal Payment on Debt (9,549,157) (4,136,474) (3,431,745) - - (17,117,376) -
Interest Payment on Debt (862,044) (196,478) (287,434) - (34) (1,345,990) (257)
Debt Proceeds 23,199,514 3,641,388 3,046,604 - - 29,887,506 -
Net Cash Provided (Used) for Capital and Related Financing Activities 6,371,832 (1,573,308) (788,544) - (3,694,435) 315,545 (2,313,292)
CASH FLOW FROM INVESTING ACTIVITIES:
Proceeds from Sale of Investments - 2,038,941 1,756,843 - - 3,795,784 -
Interest Received 49,808 139,004 65,135 19,417 11,442 284,806 63,645
Net Cash Provided (Used) in Investing Activities 49,808 2,177,945 1,821,978 19,417 11,442 4,080,590 63,645
Net Increase (Decrease) in Cash and Cash Equivalents 12,494,663 2,366,791 4,135,890 191,394 88,694 19,277,432 (692,966)
Cash and Cash Equivalents - Beginning of Year 12,908,314 14,699,858 14,753,439 4,788,609 2,280,947 49,431,167 18,233,172
Cash and Cash Equivalents - End of Year 25,402,977$ 17,066,649$ 18,889,329$ 4,980,003$ 2,369,641$ 68,708,599$ 17,540,206$
CASH AT END OF YEAR CONSISTS OF:
Cash and Cash Equivalents 11,417,193 16,258,323 17,124,762 4,980,003 2,245,948 52,026,229 17,540,206
Restricted Cash - Bond Payments 2,334,270 451,161 679,184 - - 3,464,615 -
Restricted Cash - Customer Deposits 64,792 61,526 3,422 - 123,693 253,433 -
Restricted Cash - Other 11,586,722 295,639 1,081,961 - - 12,964,322 -
Total Cash 25,402,977$ 17,066,649$ 18,889,329$ 4,980,003$ 2,369,641$ 68,708,599$ 17,540,206$
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, 2020
City of Auburn: 2020 Annual Comprehensive Financial Report Basic Financial Statements
51
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)2,729,502$ (662,260)$ 1,675,675$ (131,438)$ 414,755$ 4,026,234$ 823,724$
ADJUSTMENTS TO RECONCILE OPERATING INCOME TO
NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES:
Depreciation 3,774,956 2,337,347 2,120,788 9,410 451,066 8,693,567 1,751,618
Other Non-Operating Revenue 50,691 - - - 16,892 67,583 241,832
Asset (Increases) Decreases:
Accounts Receivable (177,632) (91,501) (81,114) (178,861) (471,463) (1,000,571) (188,206)
Miscellaneous A/R Revenue - - 14,757 - - 14,757 -
Inventory (43,944) (3,897) 354 - 23,659 (23,828) (16,572)
Liability Increases (Decreases):
Accounts & Vouchers Payable 97,121 383,277 (275,497) 369,945 (40,627) 534,219 (201,489)
Deposits Payable - (15,827) - - 7,073 (8,754) -
Wages & Benefits Payable (334,773) (180,747) (286,267) - (77,580) (879,367) (401,317)
Compensated Absences Payable 4,035 22,994 17,319 31,596 6,741 82,685 57,290
Total Adjustments 3,370,454 2,451,646 1,510,340 232,090 (84,239) 7,480,291 1,243,156
Net Cash Provided (Used) by Operating Activities 6,099,956$ 1,789,386$ 3,186,015$ 100,652$ 330,516$ 11,506,525$ 2,066,880$
SCHEDULE OF NONCASH INVESTING, CAPITAL AND
FINANCING ACTIVITIES
Capital Assets Acquired by Contributed Capital 1,500,605 2,585,682 971,636 - - 5,057,923 -
Increase (Decrease) in Fair Value of Investment - (18,160) 97,381 - - 79,221 -
Total Non Cash Investing, Capital and Financing Activities 1,500,605$ 2,567,522$ 1,069,017$ -$ -$ 5,137,144$ -$
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, 2020
PROPRIETARY FUNDS
City of Auburn: 2020 Annual Comprehensive Financial Report Basic Financial Statements
52
City of Auburn: 2020 Annual Comprehensive Financial Report 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.
Fiduciary funds involve only the receipt, temporary investment, and remittance of fiduciary
resources to individuals, private organizations, and other governmental units.
FIDUCIARY FUNDS
Custodial Fund
This fund accounts for the funds over which the City strictly acts in a custodial capacity.
City of Auburn: 2020 Annual Comprehensive Financial Report Basic Financial Statements
54
Custodial
Fund
ASSETS:
Cash and Cash Equivalents 724,035$
Receivables:
Customer Accounts 145,300
Due from Other Governmental Units 20,000
Total Assets 889,335
LIABILITIES:
Current Payables 78,146
Total Liabilities 78,146
NET POSITION
Restricted for Other Governments & Organizations 811,189
Total Net Position 811,189$
The notes to the financial statements are an integral part of this statement.
City of Auburn, Washington
STATEMENT OF FIDUCIARY NET POSITION
December 31, 2020
City of Auburn: 2020 Annual Comprehensive Financial Report Basic Financial Statements
55
Custodial
Funds
ADDITIONS:
Contributions:
State Grants 20,000$
Other Governments 339,834
Investment Interest 1,047
Total Additions 360,881
DEDUCTIONS:
Administrative Expenses 24,400$
Payment to City for Services 262,753
Total Deductions 287,153
Change in Net Position 73,728
Net Position - Janaury 1 -
Effect of Change in Accounting Principle 737,461
Net Position - January 1 restated 737,461
Net Position - December 31st 811,189$
The notes to the financial statements are an integral part of this statement.
City of Auburn, Washington
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
For the Fiscal Year Ended December 31, 2020
City of Auburn: 2020 Annual Comprehensive Financial Report Basic Financial Statements
56
City of Auburn: 2020 Annual Comprehensive Financial Report Notes to the Financial Statements
57
City of Auburn
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2020
Note 1 – Summary of Significant Accounting Policies ........................................................................................ 58
A.Reporting Entity ........................................................................................................................ 58
B.Basic Financial Statements .......................................................................................................... 58
C.Measurement Focus, Basis of Accounting, and Basis of Presentation ............................................ 59
D.Budget and Budgetary Accounting ...............................................................................................61
E.Assets, Liabilities and Fund Balance ............................................................................................. 62
1.Deposits and Investments ..................................................................................................... 62
2.Receivables .......................................................................................................................... 63
3.Interfund Receivables and Payables ...................................................................................... 63
4.Amounts Due From Other Governmental Units.................................................................... 63
5.Inventories and Prepaid Expenses ......................................................................................... 63
6.Restricted Assets .................................................................................................................. 64
7.Interfund Transactions ......................................................................................................... 64
8.Capital Assets ...................................................................................................................... 64
9.Pensions .............................................................................................................................. 64
10.Deferred Outflows/Inflows of Resources .............................................................................. 65
11. Compensated Absences ........................................................................................................ 65
12.Unearned Revenues ............................................................................................................. 65
13.Net Position Components – Proprietary Funds ..................................................................... 65
14. Fund Balance Components – Governmental Funds ............................................................... 65
F.Revenues, Expenditures and Expenses ......................................................................................... 67
G.Estimates ................................................................................................................................... 68
Note 2 – Stewardship, Compliance and Accountability .................................................................................... 68
Note 3 – Deposits and Investments ................................................................................................................. 68
Note 4 – Property Taxes ..................................................................................................................................71
Note 5 – Interfund Activity ............................................................................................................................. 73
Note 6 – Due From Other Governmental Units............................................................................................... 75
Note 7 – Capital Assets and Depreciation ........................................................................................................ 76
Note 8 – Long-Term Liabilities ........................................................................................................................ 78
Note 9 – Pension Plans ................................................................................................................................... 82
Note 10 – Other Post-Employment Benefits ...................................................................................................... 93
Note 11 – Association of Washington Cities Employment Benefit Trust .............................................................. 95
Note 12 – Construction Commitments .............................................................................................................. 97
Note 13 – Cemetery Endowed Care Fund ......................................................................................................... 97
Note 14 – Joint Ventures / Related Party .......................................................................................................... 97
Note 15 – Jointly Governed Organization / Related Party ............................................................................... 102
Note 16 – Contingencies and Litigations.......................................................................................................... 102
Note 17 – Risk Management and Insurance..................................................................................................... 103
Note 18 – Tax Abatements ............................................................................................................................. 104
Note 19 – Prior Period Adjustment………………………………………………………………………………………105
Note 20 – Subsequent Events……..………....……………………………………………………………………………105
City of Auburn: 2020 Annual Comprehensive Financial Report Notes to the Financial Statements
58
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.
Effective for fiscal year 2020, the City implemented the following new accounting and reporting standard issued by the
Governmental Accounting Standards Board (GASB):
• GASB Statement No. 84 – Fiduciary Activities. This statement established standards of accounting and financial
reporting for fiduciary activities.
A. Reporting Entity
In accordance with the criteria set forth in Statement No. 14 of the Governmental Accounting Standards Board (GASB) the City’s
Annual Comprehensive Financial Report 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 8 and 14).
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.
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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 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 and Use Tax revenue portion received from the state in January of the following year is accrued in current
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year since it is considered a material value and because of when the underlying transaction occurred and the resources are
considered to be measurable and available.
Grant Revenues – On cost reimbursement grants, grant revenue is recognized when the eligible expenditure is incurred.
Under the modified accrual basis, expenditures are recorded when the fund liability is incurred, except for the un-matured
interest and principal on general long-term debt, which is recognized when due, and for compensated absences which are
recorded as expenditures when liquidated from expendable available fund resources. Purchases of capital assets from
governmental funds are reported as expenditures during the year incurred and the asset is capitalized and reported on the
government-wide statement of net position. Long-term liabilities, including compensated absences not currently due and
payable, are also reported on the government-wide statement of net position.
The accrual basis of accounting is followed in all proprietary 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
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when earned and expenses are recorded when incurred. The economic resources measurement focus is applied in the
determination of financial position, net income, and cash flow.
Proprietary funds distinguish operating revenues and expenses from non-operating items. Operating revenues and expenses
generally result from providing services and producing and delivering goods in connection with a proprietary fund’s
principal ongoing operations. The principal operating revenue of the City’s utility funds, other enterprise funds, and internal
service funds are charges to customers for sales and services, vehicle and computer replacement, and insurance. Operating
expenses for enterprise funds and internal service funds include the cost of sales and services, administrative expenses, taxes,
and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as non-operating
revenues and expenses, or as capital contributions. Substantially all proprietary fund operating revenues are used as security
for revenue bonds.
GASB Statement No. 62 Codification of Accounting and Financial Reporting Guidance Contained in Pre-November 30,
1989 FASB and AICPA Pronouncements, provides a codification of private-sector standards of accounting and financial
reporting issued prior to December 1, 1989, to be followed in the financial statements of proprietary fund types. The City
has adopted provisions of GASB Statement No. 62.
a. Enterprise funds – These funds are used to account for services to the general public where all or most of the costs,
including depreciation, are to be financed or recovered from users of such services. Four enterprise funds are
considered major funds. Utilities provided to residents are accounted for in the water fund, sanitary sewer fund,
storm drainage fund, and the solid waste fund.
b. Internal Service funds – These funds are used to account for the financing of goods and services provided to other
funds, departments, or governments on a cost reimbursement basis. The City uses internal service funds to account
for its fleet of vehicles, its maintenance and operation of facilities, the City-wide provision of computer hardware
and software services, the cost of employees affected by an occupational injury or illness, and its insurance
premiums.
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 Fiduciary Funds are not included in the government-wide financial
statements since they are not assets of the City available to support city programs. The City’s custodial funds function
primarily as a clearing mechanism for cash resources which are collected by the City, held for a period of time and then
disbursed to authorized recipients.
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 Annual
Comprehensive Financial Report (ACFR).
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. At fiscal year end any unexpended appropriation balances automatically carryforward subject to the rules
established in the enabling ordinance.
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The City prepares the biennial budget on the modified accrual basis, which conforms to Generally Accepted Accounting Principles
(GAAP). The Annual Comprehensive Financial Report includes budgetary comparisons for those governmental funds with
legally adopted budgets. Budget amounts include the adopted current year budget appropriations and any revisions made
during the year.
State law establishes the budget process and the time limits under which a budget must be developed. The City follows the
procedures outlined below to establish its biennial budget:
a. Sixty days prior to each odd numbered fiscal year, the Mayor submits to the City Council a preliminary budget for the
biennium commencing the following January 1st. The operating budget includes proposed expenditures and funding
sources.
b. Public hearings are conducted at the Auburn City Council Meetings to obtain taxpayer comments.
c. Prior to December 31st, the budget is legally enacted through passage of an ordinance.
d. The final operating budget as adopted is published and distributed after adoption. Copies of the budget are made
available to the public.
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, 2020, the Washington State Local Government
Investment Pool (LGIP) was holding $125,692,297 in short-term investments. This amount is classified on the Statement of
Net Position as part of the line item cash and cash equivalents. The interest on these investments is prorated to the various
funds based upon ownership of investments. For purposes of the Statement of Cash Flows, cash and cash equivalents
includes cash on deposit with financial institutions in both demand and time deposit accounts, and amounts invested in the
Local Government Investment Pool, administered by the State Treasurer’s Office. The State Finance Committee is the
administrator of the statute that created the pool and adopts appropriate rules. The State Treasurer’s Office is responsible
Original Final
Budget Revisions Budget
Governmental Funds
General Fund 80,586,405$ 4,841,500$ 85,427,905$
Total Governmental Funds 80,586,405 4,841,500 85,427,905
Special Revenue Funds:
Local Street 1,916,300$ 1,212,534$ 3,128,834$
Arterial Street 3,995,900 7,184,846 11,180,746
Hotel/Motel Tax 170,310 35,000 205,310
Arterial Street Preservation 3,967,840 3,241,384 7,209,224
Drug Forfeiture Fund 310,956 135,500 446,456
Housing and Community Development 539,970 661,580 1,201,550
Recreation Trails - - -
Business Improvement Area 90,000 - 90,000
Cumulative Reserve 4,100,000 42,200 4,142,200
Mitigation Fees 741,600 4,712,322 5,453,922
Total Special Revenue Funds 15,832,876 17,225,366 33,058,242
Total Budgeted Funds 96,419,281$ 22,066,866$ 118,486,147$
ORIGINAL AND SUPPLEMENTAL APPROPRIATIONS
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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.
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.
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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.
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.
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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.
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:
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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.
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,
2020:
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 47,085$ -$ -$ -$ 47,085$
Cemetery Endowment - - - 1,925,183 1,925,183
Total Nonspendable 47,085 - - 1,925,183 1,972,268
Restricted
Major Street Construction - 2,284,075 - - 2,284,075
REET 1 Allowable Projects - - 5,600,332 - 5,600,332
REET 2 Allowable Projects - - 3,630,195 - 3,630,195
Arterial Street Presevation Fund - - - 2,570,286 2,570,286
Parks and Trails Construction Projects - - - 893,335 893,335
City Tourism Promotion - - - 315,807 315,807
Drug Investigation and Enforcement - - - 998,267 998,267
Community Development Block Grant Program - - - 42,325 42,325
Recreational Trail Development - - - 80,163 80,163
Downtown Business Area Improvements - - - 166,486 166,486
Street and Fire Service Mitigation Fees - - - 14,332,770 14,332,770
Debt Service - - - 2,873 2,873
Total Restricted - 2,284,075 9,230,527 19,402,312 30,916,914
Committed
Local Street Improvements (Save our Streets)- - - 3,216,840 3,216,840
Arterial Street Preservation - - - 693,272 693,272
Total Committed - - - 3,910,112 3,910,112
Assigned
Appropriations Over Estimated Revenue 11,257,547 - - - 11,257,547
Arterial Street Preservation Fund - - 1,053,800 122,368 1,176,168
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 - - - 84,252 84,252
Cemetery Capital Enhancement and Maintenance - - - 97,079 97,079
Downtown Infrastructure Improvements - - - 355,086 355,086
Debt Service - - - 92,708 92,708
Total Assigned 11,257,547 - 1,053,800 852,917 13,164,264
Unassigned
Unassigned 30,634,592 - - - 30,634,592
Total Unassigned 30,634,592 - - - 30,634,592
Total Fund Balances 41,939,224$ 2,284,075$ 10,284,327$ 26,090,524$ 80,598,150$
Governmental Fund Balances
December 31, 2020
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, 2020, the carrying amount of the City’s cash demand deposits with Key Bank totaled $18,825,172 while the
bank balance was $20,467,219. In addition, the balance of the City’s interest bearing checking account with Pacific Premier
Bank totaled $10,539,569. 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, 2020. 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 2020, the net increase in the fair value of investments being held for more than one year is $242,006 at year-end.
City of Auburn: 2020 Annual Comprehensive Financial Report Notes to the Financial Statements
69
As of December 31, 2020, the City had the following investments and maturities:
The city measures and reports investments at fair value using the valuation input hierarchy established by generally accepted
accounting principles, as follows:
*Level 1 – Quoted prices in active markets for identical assets or liabilities;
*Level 2 – These are quoted market prices for similar assets or liabilities, quoted prices for identical or similar assets or
liabilities in markets that are not active, or other quoted prices that are not observable;
*Level 3 – Unobservable inputs for an asset or liability.
Fair Less than 1 to 2 2 to 3 Greater than
Investment Type Value 1 year years years 3 years
US Agency 17,423,935$ 7,251,335$ $5,168,350 5,004,250$ -$
17,423,935$ 7,251,335$ 5,168,350$ 5,004,250$ -$
Reconciliation to government-
wide statement of net position:
Total investments above 17,423,935$
Plus: cash in checking 29,364,741
Plus: petty cash 18,800
Less: cash investments in custodial funds (724,035)
Total cash and investments at fair value 46,083,441$
Amortized
Investment Type Cost
State investment pool (LGIP)125,692,297$ 125,692,297$ -$ -$ -$
125,692,297$ 125,692,297$ -$ -$ -$
Total cash and investments, government-
wide statement of net position 171,775,738$
Schedule of Investments by Maturities
As of December 31, 2020
Investment maturities
Governmental Business-Type
Activities Activities Total
Cash and Cash Equivalents 61,955,611$ 52,026,229$ 113,981,840$
Cash with Outside Agencies - - -
Investments 10,172,599 7,251,335 17,423,934
Temporarily Restricted:
Cash and Cash Equivalents 21,762,411 16,682,370 38,444,781
Permanently Restricted:
Cash and Cash Equivalents 1,925,183 - 1,925,183
95,815,804$ 75,959,934$ 171,775,738$
Reconciliation of Cash and Investments
Government-Wide Statement of Net Position
As of December 31, 2020
City of Auburn: 2020 Annual Comprehensive Financial Report Notes to the Financial Statements
70
At December 31, 2020, 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 12/31/2020 (Level 1)(Level 2)(Level 3)
US Agency 17,423,935$ 17,423,935$ -$ -$
Total Investments by Fair Value Level 17,423,935$ 17,423,935$ -$ -$
Investments and Derivative Instruments Measured at Fair Value
As of December 31, 2020
Fair Value Measurements Using
City of Auburn: 2020 Annual Comprehensive Financial Report Notes to the Financial Statements
71
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 2020 were $22,688,696 including collection of prior year delinquent assessments.
Property taxes assessed for collection in tax year 2020 were based on a regular tax levy of $1.92 per $1,000 on a total 2019
assessed value of $12,316,932,930.
For levy year 2020, to be received in 2021, the City’s regular tax levy is $1.82 per $1,000 on a 2020 assessed valuation of
$13,211,866,719 as of December 31, 2020, for a total regular levy of $23,346,072. State law provides that debt cannot be
incurred in excess of the following percentages of the taxable property of the City.
1.50% of assessed value without a vote of the people
2.50% of assessed value with a vote of the people
The City has additional authority to incur the following debt as a percentage of total valuation.
2.50% of assessed value with a vote of the people, indebtedness is for utilities
2.50% of assessed value with a vote of the people, indebtedness is for parks, or open space development
At December 31, 2020, the debt limits for the City were as follows:
The County Treasurer acts as an agent to collect property taxes levied in the county for all taxing authorities. Taxes are levied
annually on January 1 on property values listed as of the prior August 31. The County assesses property at 100% of fair market
value. A revaluation of all property is required every year and a physical inspection is required at least once every six years.
State
Investment U.S.
Pool Agency Total
Governmental Funds -$ 10,172,600$ 10,172,600$
Enterprise Funds - 7,251,335 7,251,335
Treasurer's Residual Funds 125,692,297 - 125,692,297
Total 125,692,297$ 17,423,935$ 143,116,232$
Schedule of Investments by Fund Category and Investment Type
As of December 31, 2020
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 198,178,301$ 132,118,867$ 330,297,168$ 330,297,168$ 990,891,504$
Outstanding indebtedness (40,356,449) - - - (40,356,449)
Margin available 157,821,852$ 132,118,867$ 330,297,168$ 330,297,168$ 950,535,055$
With a Vote
City of Auburn: 2020 Annual Comprehensive Financial Report Notes to the Financial Statements
72
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 $1,000 of
value. If the taxes of all districts exceed this amount, each is proportionately reduced until the total is at or below the 1%
limit.
2. Washington State law in RCW 84.55.010 limits the annual growth of regular property taxes to the lesser of 1% or the rate
of inflation. With a vote of the majority of the voters within a taxing district, the 1% levy limitation can be “lifted” and
additional taxes may be levied
3. The City may voluntarily levy taxes below the legal limit.
Special levies approved by the voters are not subject to the above limitations.
Property taxes are recorded as receivable and offset by an unearned revenue account when levied. Since state law allows for
the sale of property for failure to pay taxes, no estimate of uncollectible taxes is made.
City of Auburn: 2020 Annual Comprehensive Financial Report Notes to the Financial Statements
73
NOTE 5 – INTERFUND ACTIVITY
Transfers are legally authorized transfers of resources from a fund receiving revenue to the fund through which resources are
to be expended. The principal purposes for interfund transfers include interfund subsidies and transfers into capital project
and debt service funds. Interfund transfers for the year ended December 31, 2020 were as follows:
Funds Transfer In Transfer Out
Governmental funds:
General 2,081,527$ 402,158$
Cumulative Reserve - 2,000,000
Total general fund 2,081,527 2,402,158
Other Governmental funds
Special revenue funds:
Arterial Streets 1,689,072 -
Local Streets 1,900,000 -
Arterial Street Preservation 2,175,074 -
Housing And Community Development - -
Mitigation Fees - 1,648,404
Total special revenue funds 5,764,146 1,648,404
Debt service funds:
2010 A&B Annex 1,317,400 972,227
2010 C&D Local Revitalization 220,600 408,328
2020 LTGO A&B Refunding 1,380,555 -
LID 250 375,239 -
Total debt service funds 3,293,795 1,380,555
Capital projects funds:
Municipal Park Construction 1,010,499 -
Capital Improvements 66,812 5,943,709
Total capital projects funds 1,077,311 5,943,709
Total all governmental funds 12,216,779 11,374,827
Proprietary funds:
Water 6,536,029 6,643,340
Sewer - 63,399
Storm Drainage - 137,399
Solid waste - 11,662
Non-major Enterprise funds
Airport 220,386 220,386
Cemetery 97,900 42,500
Total proprietary funds 6,854,315 7,118,687
Internal service funds:
Facilities 41,832 679,176
Innovation & Technology 115,164 -
Total internal service funds 156,995 679,176
Permanent funds:
Cemetery Endowed Care - 55,400
Total permanent funds - 55,400
Total 19,228,090$ 19,228,090$
Transfers
City of Auburn: 2020 Annual Comprehensive Financial Report Notes to the Financial Statements
74
Loans between funds are classified as interfund receivable and payable. Interfund Loans do not affect total fund equity.
Balance Balance
Due From Due To 1/1/2020 New Loans Repayments 12/31/2020
Housing & Comm. Dev.General Fund 100,000$ -$ -$ 100,000$
Airport Fund Capital Improvement 11,627$ -$ 11,627$ -$
Airport Capital General Fund -$ 425,000$ -$ 425,000$
Total interfund loans 111,627$ 425,000$ 11,627$ 525,000$
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 was to cover the cost of The Auburn Municipal T Hanger Enclosure Project.
*The purpose of the interfund loan to the Airport Capital Fund is to cover FAA grant-funded costs expected to be reimbursed in 2021.
Interfund Loans
City of Auburn: 2020 Annual Comprehensive Financial Report Notes to the Financial Statements
75
NOTE 6 – DUE FROM OTHER GOVERNMENTAL UNITS
As of December 31, 2020 the City had receivables due from other governmental units as follows:
General Fund:
Auburn School District 112,453
City of Seattle Human Services Department 1,948
King Conservation District -Farmers Market 16,399
King County District Court 560,363
King County Property Taxes 3,334
King County -Real Estate Excise Taxes 521,563
King County VSHS Levy grant 152,100
Muckleshoot Indian Tribe 94,093
City of Kent-VNET 1,560
Pierce County - Real Estate Excise Taxes 18,151
Pierce County Sheriff's Department -TNET 2,837
US Department of Justice -Bulletproof Vest Program 8,116
US Department of Justice -COPS Hiring Program 74,893
US Department of Justice -2020 CESF Program 84,064
WA State Department of Commerce 30,000
WA State Treasurer - Sales Taxes 1,610,531
Total General Fund 3,292,404
Arterial Street Fund:
KC Metro Transit 94,595
KCWTD 14,469
WA Dept. of Transportation - Arterial Street Improvements 1,403,639
Total Arterial Street Fund 1,512,703
Arterial Street Preservation Fund:
WA Dept. of Transportation - Arterial Street Preservation 588,935
Total Arterial Street Preservation Fund 588,935
Drug Forfeiture Fund:
Pierce County Sheriff's Department -TNET 5,323
Total Drug Forfeiture Fund 5,323
Housing & Community Development:
U.S. Dept. of Housing - Community Development Block Grant 20,028
Total Housing & Community Development Fund 20,028
General Government Capital Improvements:
Pierce County - Real Estate Excise Taxes 55,285
WA State Department of Commerce 432,575
Total General Government Capital Improvements Fund 487,860
Storm Drainage Fund:
City of Algona 90
City of Pacific 9,938
WA State Department of Ecology 50,000
Total Storm Drainage Fund 60,028
Solid Waste Fund:
King County - Waste reduction and recycling grant 47,869
WA State Department of Ecology - Grant 3,717
Total Solid Waste fund 51,587
Storm Drainage Capital Fund:
King County Flood Control District -Grant 12,096
Total Storm Drainage Capital Fund 12,096
Airport Capital Fund
Federal Aviation Administration -Grant 521,490
Total Airport Capital fund 521,490
Facilities Fund:
City of Federal Way 11,667
Total Airport Capital fund 11,667
Information Services Fund:
City of Algona 11,169
City of Pacific 16,659
Total Information Services fund 27,829
Equipment Rental Capital Fund:
Auburn School District 133,728
Total Information Services fund 133,728
Agency Fund:
WA State Department of Commerce 20,000
Total Agency fund 20,000
Total 6,745,678
Reconciliation to government-wide statement of net position:
Total above due from other governmental units 6,745,678
Amount due from fiduciary fund (20,000)
Total due from other governmental units,
6,725,678
Due from Other Governmental Units
government-wide statement of net position
City of Auburn: 2020 Annual Comprehensive Financial Report Notes to the Financial Statements
76
NOTE 7 – CAPITAL ASSETS AND DEPRECIATION
Capital asset activity for the year ended December 31, 2020 is as follows:
Balance Decreases/Balance
1/1/20 Increases Adjustments 12/31/20
Governmental activities:
Capital assets, not being depreciated:
Land 108,893,205$ 199,428$ -$ 109,092,633$
Construction in progress 6,513,599 9,958,666 (6,478,872) 9,993,393
Total capital assets, not being depreciated 115,406,804 10,158,094 (6,478,872) 119,086,026
Capital assets, being depreciated:
Buildings 73,841,057 486,804 - 74,327,861
Improvements other than buildings 26,595,137 92,638 - 26,687,775
Machinery and equipment 31,713,097 2,440,796 (715,074) 33,438,819
Intangibles 1,095,683 - (749,110) 346,573
Infrastructure 415,484,055 9,880,550 - 425,364,605
Total capital assets being depreciated 548,729,029 12,900,788 (1,464,184) 560,165,633
Less: accumulated depreciation for:
Buildings (23,108,492) (1,572,863) - (24,681,355)
Improvements other than buildings (16,938,167) (687,892) - (17,626,059)
Machinery and equipment (22,798,079) (1,800,449) 617,091 (23,981,437)
Intangibles (1,358,881) (4,935) 645,402 (718,414)
Infrastructure (198,709,207) (14,707,009) - (213,416,216)
Total accumulated depreciation (262,912,826) (18,773,148) 1,262,493 (280,423,481)
Total capital assets, being depreciated, net 285,816,203 (5,872,360) (201,691) 279,742,152
Governmental activities capital assets, net 401,223,007$ 4,285,734$ (6,680,563)$ 398,828,178$
Business-type activities:
Capital assets, not being depreciated:
Land 12,543,322$ 388,370$ -$ 12,931,692$
Water Rights 5,954,358 934,805 - 6,889,163
Construction in progress 5,078,048 10,517,274 (9,722,039) 5,873,283
Total capital assets, not being depreciated 23,575,728 11,840,449 (9,722,039) 25,694,138
Capital assets, being depreciated:
Buildings 6,085,434 - - 6,085,434
Improvements other than buildings 345,674,501 14,774,216 - 360,448,717
Machinery and equipment 2,591,598 37,808 (36,466) 2,592,940
Total capital assets being depreciated 354,351,533 14,812,024 (36,466) 369,127,091
Less: accumulated depreciation for:
Buildings (4,294,709) (109,524) - (4,404,233)
Improvements other than buildings (132,347,443) (8,538,294) - (140,885,737)
Machinery and equipment (2,322,717) (45,749) 34,613 (2,333,853)
Total accumulated depreciation (138,964,869) (8,693,567) 34,613 (147,623,823)
Total capital assets, being depreciated, net 215,386,664 6,118,457 (1,853) 221,503,268
Business-type activities capital assets, net 238,962,392$ 17,958,906$ (9,723,892)$ 247,197,406$
Depreciation/amortization expense was charged to functions/programs of the City as follows:
Schedule of Capital Asset Activity
City of Auburn: 2020 Annual Comprehensive Financial Report Notes to the Financial Statements
77
Capital asset activity for the year ended December 31, 2020 is as follows:
Depreciation/amortization expense was charged to functions/programs of the City as follows:
The 2020 total interest cost incurred for business-type activities was $1,078,391 all of which was charged to expense.
Governmental activities:
General Government 1,063,676$
Public Safety 695,773
Transportation 14,003,835
Health and Human Services 7,682
Culture and Recreation 1,250,563
Capital assets held by the City's internal service funds are charged to the various
functions based on their usage of the assets 1,751,619
Total depreciation/amortization expense - governmental activities 18,773,148$
Business-type activities:
Water 3,774,956$
Sanitary Sewer 2,337,347
Storm Water 2,120,788
Solid Waste 9,410
Airport 427,175
Cemetery 23,891
Total depreciation expense - business-type activities 8,693,567$
City of Auburn: 2020 Annual Comprehensive Financial Report Notes to the Financial Statements
78
NOTE 8 – 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:
• 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. 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, 2020 is $1,770,569.
• 2020 Limited Tax General Obligation Series A Refunding Bonds were issued in the principal amount of $15,010,000 on
October 22, 2020 for the purpose of refunding on a current basis the 2010 Limited Tax General Obligation Series B Bonds
of which $17,560,000 was outstanding. The bonds were issued at a premium of $3,124,761 and bear a fixed interest rate
of 4-5% through maturity. The net proceeds of $17,973,858 (after payment of $160,903 in issuance costs) were deposited
into an irrevocable trust with an escrow agent to pay the full outstanding principal and interest on the 2010 B Bonds on
the October 23, 2020 redemption date. As a result of this transaction, the 2010 B bonds are considered to be defeased and
the liability for those bonds have been removed from the City’s financial statements. The refunding transaction reduced
the City’s total debt service payments by $3,898,891 through the final maturity of December 1, 2039 and resulted in an
economic gain (the difference between the present values of the debt service payments on the old and new debt) of
$3,391,515.
• 2020 Limited Tax General Obligation Series B Refunding Bonds were issued in the principal amount of $4,470,000 on
October 22, 2020 for the purpose of refunding on a current basis the 2010 Limited Tax General Obligation Series D Bonds
of which $5,160,000 was outstanding. The bonds were issued at a premium of $864,988 and bear a fixed interest rate of
2-5% through maturity. The net proceeds of $5,287,071 (after payment of $47,917 in issuance costs) were deposited into
an irrevocable trust with an escrow agent to pay the full outstanding principal and interest on the 2010 D Bonds on the
October 23, 2020 redemption date. As a result of this transaction, the 2010 D bonds are considered to be defeased and
the liability for those bonds have been removed from the City’s financial statements. The refunding transaction reduced
the City’s total debt service payments by $1,003,626 through the final maturity of December 1, 2034 and resulted in an
economic gain (the difference between the present values of the debt service payments on the old and new debt) of
$903,068.
Revenue Bonds are payable from water, sewer and storm drainage utility revenues generated by those enterprise funds. In June
16, 2020, the City issued (2) series of utility revenue bonds as follows:
• 2020 Utility System Revenue Bonds were issued in the par amount of $12,030,000 to finance water utility system
improvements.
• 2020 Utility System Revenue Refunding Bonds were issued in the principal amount of $11,835,000 for the purpose of
advance refunding the 2010 Utility System Revenue Bonds of which $15,675,000 was outstanding. The bonds were issued
at a premium of $2,997,541 and bear a fixed interest rate of 5% through maturity. The net proceeds of $14,933,747 (after
payment of $129,168 in issuance costs and the City’s reserve account contribution of $1,175,010) were deposited into an
irrevocable trust with an escrow agent to pay the full outstanding principal and interest on the December 1, 2020
redemption date. As a result of this transaction, the 2010 Revenue Bonds are considered to be defeased and the liability
for those bonds have been removed from the City’s financial statements. The refunding transaction reduced the City’s total
debt service payments by $2,728,553 through the final maturity of December 1, 2030 and resulted in an economic gain
(the difference between the present values of the debt service payments on the old and new debt) of $2,552,622.
City of Auburn: 2020 Annual Comprehensive Financial Report Notes to the Financial Statements
79
State of Washington Public Works Trust Fund and Drinking Water State Revolving Fund Loans are a direct responsibility of the
City. Auburn currently has nine outstanding loans with a remaining total balance of $7,451,135. Seven of the loans are for
water and sewer construction projects. The loans are being repaid from water and sewer fund revenues over a 20-year period
that begins upon each project completion (PWTF 2001, PWTF 2002, PWTF 2004, PWTF 2006, PWTF 2013, DWSRF 2016, &
DWSRF 2020). The other two loans are for arterial street improvements and are being repaid from arterial street fund revenues
over a 20-year period that began in 2009 upon project completion (PWTF 2008) and over a 29-year period that began in 2013
upon project completion (PWTF 2012).
Compensated Absences are paid by those funds that have employees. These are mostly payable by the General fund and
enterprise funds.
The following schedules summarize the long-term debt transactions of the City for the year ended December 31, 2020. The first
table summarizes all debt transactions for Auburn, while the second provides detailed information on all long-term debt.
Additional schedules reflect total annual debt service requirements to maturity and the reconciliation of debt by fund type.
General
Obligation Utility
Employee
Leave Benefit
Other Post
Employment
Benefits
Net Pension
Liability
Firemen's
Pension
Liability Premium
Due To Other
Governments Total
Long-term liabilities payable 12/31/19 28,302,171$ 28,827,010$ 3,059,617$ 13,702,359$ 9,375,681$ 3,452,448$ 1,003,130$ 17,838,617$ 105,561,033$
Added 19,480,000 24,011,582 2,273,713 1,684,588 - 335,989 9,865,673 - 57,651,545
Retired (24,626,685) (17,117,376) (2,170,832) (602,074) (199,914) (225,451) (974,903) (637,655) (46,554,889)
Long-term liabilities payable 12/31/20 23,155,486$ 35,721,216$ 3,162,498$ 14,784,873$ 9,175,767$ 3,562,986$ 9,893,900$ 17,200,962$ 116,657,688$
CHANGES IN LONG-TERM LIABILITES SUMMARY
Year Principal Interest Principal Interest Principal (1)Interest
2021 1,684,698 1,561,441 2,823,638 1,459,709 4,508,336 3,021,150
2022 1,751,659 1,495,120 2,676,552 1,372,447 4,428,211 2,867,566
2023 1,818,039 1,425,906 2,740,438 1,277,319 4,558,477 2,703,225
2024 1,890,575 1,353,809 2,835,438 1,178,203 4,726,013 2,532,012
2025 1,969,116 1,278,685 2,827,594 1,074,537 4,796,710 2,353,222
2026-2030 9,234,006 5,092,278 14,764,482 3,661,967 23,998,488 8,754,245
2031-2035 11,101,303 2,777,746 6,052,038 1,240,950 17,153,341 4,018,696
2036-2040 7,807,135 648,936 3,983,962 351,098 11,791,097 1,000,034
2041-2045 - - 116,993 292 116,993 292
Totals 37,256,531$ 15,633,921$ 38,821,133$ 11,616,523$ 76,077,664$ 27,250,444$
76,077,664$ Principal debt service requirements to maturity
3,162,498 Employee Leave Benefits
14,784,873 Other Post Employment Benefits
9,175,767 Net Pension Liability
3,562,986 Firemen's Pension Liability
9,893,900 Premium
116,657,688$ Long Term Liabilities 12/31/20
Obligation Bonds Bonds/Loans Long-Term Debt
DEBT SERVICE REQUIREMENT TO MATURITY
General Utility Total
City of Auburn: 2020 Annual Comprehensive Financial Report Notes to the Financial Statements
80
Interest Maturity Original Principal Balance Balance Due Within
Issue Name Rates Date Amount(2) Installments 12/31/19 Additions Reductions 12/31/20 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 17,560,000 - (17,560,000) - -
LTGO 2010D (1)3.27-6.19%12/1/2034 6,320,000 $220,000 - $445,000 5,160,000 - (5,160,000) - -
LTGO Refunding 2016 1.64 -1.64%12/1/2025 3,166,930 $71,470 - $366,159 2,111,185 - (340,616) 1,770,569 341,802
LTGO Refunding 2020A (LTGO 2010B)4.00-5.00%12/1/2039 15,010,000 $480,000 - $1,045,000 - 15,010,000 (865,000) 14,145,000 480,000
LTGO Refunding 2020B (LTGO 2010D)4.00-5.00%12/1/2034 4,470,000 $71,470 - $366,159 - 4,470,000 (330,000) 4,140,000 220,000
Total General Obligation Bonds 49,331,930 24,831,185 19,480,000 (24,255,616) 20,055,569 1,041,802
Capital Leases:
Auburn Avenue Theater 6.58%12/31/2021 695,504 $4,114 - $6,612 148,082 - (148,082) - -
John Deere Financial Excavator Lease 3.00%7/15/2020 205,334 $3,695 25,610 - (25,610) - -
Total Capital Leases 900,838 173,692 - (173,693) - -
Employee Leave Benefits:
Compensated absences 2,558,131 1,853,717 (1,833,521) 2,578,327 1,893,379
Other Post Employment Benefits:
LEOFF 1 13,702,359 1,684,588 (602,074) 14,784,873 -
Pensions:
Net Pension Liability 6,221,663 - (145,992) 6,075,671 -
Firemen's Pension Liability 3,452,448 335,989 (225,451) 3,562,986 -
Public Works Trust Fund Loans:
PWTF 2008 0.50%7/1/2028 1,527,273 $80,383 723,445 - (80,383) 643,062 80,383
PWTF 2012 0.50%6/1/2041 3,284,857 $116,993 2,573,849 - (116,993) 2,456,856 116,993
Total Public Works Trust Fund Loans 4,812,130 3,297,294 - (197,376) 3,099,918 197,376
Premium Related to Debt 33,602 3,989,749 (219,504) 3,803,847 -
Total Governmental 55,044,898$ 54,270,374$ 27,344,043$ (27,653,227)$ 53,961,191$ 3,132,557$
BUSINESS-TYPE DEBT
Revenue Bonds:
Utility sys bonds 2010 (1)3.00-6.40%12/1/2030 21,295,000 $575,000 - $1,720,000 15,675,000 - (15,675,000) - -
Utility sys bonds 2013 (1)0.38-4.00%12/1/2032 11,415,000 $335,000 - $785,000 8,185,000 - (505,000) 7,680,000 515,000
Utility sys refunding bonds 2020 (2010 Bon 5%12/1/2030 11,835,000 $950,000 - $1,450,000 - 11,835,000 - 11,835,000 950,000
Utility sys bonds 2020 (1)4.00-5.00%12/1/2039 12,030,000 $175,000 - $895,000 - 12,030,000 (175,000) 11,855,000 395,000
Total Revenue Bonds 56,575,000 23,860,000 23,865,000 (16,355,000) 31,370,000 1,860,000
Employee Leave Benefits:
Compensated absences 501,486 419,996 (337,311) 584,171 428,982
Net Pension Liability 3,154,018 - (53,922) 3,100,096 -
Public Works Trust Fund & Drinking Water Loans:
PWTF 2001 0.50%7/1/2021 4,290,405 $227,086 454,171 - (227,086) 227,086 227,086
PWTF 2002 1.00%7/1/2022 641,250 $26,114 78,343 - (26,114) 52,229 26,114
PWTF 2004 0.50%7/1/2024 2,049,036 $107,844 539,220 - (107,844) 431,376 107,844
PWTF 2006 0.50%7/1/2026 3,325,000 $180,418 1,262,926 - (180,418) 1,082,508 180,418
PWTF 2013 2.00%6/1/2032 3,325,000 $188,538 2,451,000 - (188,538) 2,262,462 188,538
DWSRF 2016⁽³⁾1.50%10/1/2026 248,066 $30,262 181,350 30,486 (30,262) 181,574 30,262
DWSRF 2020 1.75%10/1/2039 3,030,000 $5,999 - 116,095 (2,113) 113,982 5,999
Total Public Works Trust Fund & Drinking Water Loans 16,908,757 4,967,010 146,582 (762,376) 4,351,217 766,262
Premium Related to Debt 969,528 5,875,924 (755,399) 6,090,053 -
Total Proprietary 73,483,757$ 33,452,042$ 30,307,502$ (18,264,008)$ 45,495,537$ 3,055,244$
Total All Funds 128,528,655$ 87,722,416$ 57,651,545$ (45,917,234)$ 99,456,728$ 6,187,801$
(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.
(3) The original authorized loan amount was reduced from $1,353,400 in concert with a reduction in project scope (limited to design costs only).
CHANGES IN LONG-TERM LIABILITIES
City of Auburn: 2020 Annual Comprehensive Financial Report 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, 2020 utility revenue, and 2020 utility revenue refunding
bonds is 1.25. Debt service coverage for 2020 was 5.50. 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, 2020 is $0 for its tax-exempt bond issues.
Interest Maturity Original Principal Balance Balance Due Within
Issue Name Rates Date Amount Installments 12/31/19 Additions Reductions 12/31/20 One Year
GOVERNMENTAL DEBT:
General Obligation Bonds:
SCORE Refunding Bonds 2019 3.00-5.00%12/1/2038 17,838,617 $637,655 - $1,325,973 17,838,617 - (637,655) 17,200,962 642,896
Total General Obligation Bonds
Due Other Governments 17,838,617$ 17,838,617$ -$ (637,655)$ 17,200,962$ 642,896$
CHANGES IN LONG-TERM LIABILITIES DUE TO OTHER GOVERNMENTS
Enterprise Governmental
Funds Funds 12/31/20
Liabilities payable from restricted assets:
Revenue bonds 2,204,135$ -$ 2,204,135$
Long-term bonds payable:
General obligation bonds - 20,055,569 20,055,569
Capital lease - - -
Revenue bonds 29,165,865 - 29,165,865
Public Works Trust Fund loans 4,351,217 3,099,918 7,451,135
Due to Other Governments - 17,200,962 17,200,962
Employee leave benefits 584,171 2,578,327 3,162,498
Other Post Employment Benefits - 14,784,873 14,784,873
Net Pension Liability 3,100,096 6,075,671 9,175,767
Firemen's Pension Liability - 3,562,986 3,562,986
Premium 6,090,053 3,803,847 9,893,900
Total long-term debt 45,495,537$ 71,162,153$ 116,657,688$
LONG-TERM LIABILITIES RECONCILIATION
City of Auburn: 2020 Annual Comprehensive Financial Report Notes to the Financial Statements
82
Note 9 – Pension Plans
The following table represents the aggregate pension amounts for all plans for the year 2020:
Aggregate Pension Amounts - All Plans
Pension liabilities $ (9,175,767)
Pension assets $ 9,463,432
Deferred outflows of resources $ 4,668,267
Deferred inflows of resources $ (4,626,534)
Pension expense/expenditures $ 452,244
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 that includes financial statements and required supplementary
information for each plan. The DRS Annual Comprehensive Financial Report may be obtained by writing to:
Department of Retirement Systems
Communications Unit
P.O. Box 48380
Olympia, WA 98540-8380
Or the DRS Comprehensive Annual Financial Report 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: 2020 Annual Comprehensive Financial Report Notes to the Financial Statements
83
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 2020 were as follows:
PERS Plan 1
Actual Contribution Rates: Employer Employee*
January – August 2020:
PERS Plan 1 7.92% 6.00%
PERS Plan 1 UAAL 4.76%
Administrative Fee 0.18%
Total 12.86% 6.00%
September – December 2020:
PERS Plan 1 7.92% 6.00%
PERS Plan 1 UAAL 4.87%
Administrative Fee 0.18%
Total 12.97% 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: 2020 Annual Comprehensive Financial Report Notes to the Financial Statements
84
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 2020 were as follows: PERS Plan 2/3
Actual Contribution Rates: Employer 2/3 Employee 2*
January – August 2020:
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%
September – December 2020:
PERS Plan 2/3 7.92% 7.90%
PERS Plan 1 UAAL 4.87%
Administrative Fee 0.18%
Employee PERS Plan 3 Varies
Total 12.97% 7.90%
*For employees participating in JBM, the contribution rate was 19.75%.
The City’s actual PERS plan contributions were $1,282,181 to PERS Plan 1 and $2,116,752 to PERS Plan 2/3 for the year ended
December 31, 2020.
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: 2020 Annual Comprehensive Financial Report Notes to the Financial Statements
85
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 2020. 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% in 2020.
The LEOFF Plan 2 required contribution rates (expressed as a percentage of covered payroll) for 2020 were as follows:
LEOFF Plan 2
Actual Contribution Rates: Employer Employee
January – December 2020
State and local governments 5.15% 8.59%
Administrative Fee 0.18%
Total 5.33% 8.59%
Ports and Universities 8.59% 8.59%
Administrative Fee 0.18%
Total 8.77% 8.59%
The City’s actual contributions to the plan were $740,847 for the year ended December 31, 2020.
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, 2020, the state contributed $76,297,643 to LEOFF
Plan 2. The amount recognized by the City as its proportionate share of this amount is $468,887.
Actuarial Assumptions
The total pension liability (TPL) for each of the DRS plans was determined using the most recent actuarial valuation completed
in 2020 with a valuation date of June 30, 2019. The actuarial assumptions used in the valuation were based on the results of
the Office of the State Actuary’s (OSA) 2013-2018 Experience Study and the 2019 Economic Experience Study.
City of Auburn: 2020 Annual Comprehensive Financial Report Notes to the Financial Statements
86
Additional assumptions for subsequent events and law changes are current as of the 2019 actuarial valuation report. The TPL
was calculated as of the valuation date and rolled forward to the measurement date of June 30, 2020. Plan liabilities were
rolled forward from June 30, 2019, to June 30, 2020, 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 developed using the Society of Actuaries’ Pub. H-2020 mortality rates, which vary by member status, as
the base table. The OSA applied age offsets for each system, as appropriate, to better tailor the mortality rates to the
demographics of each plan. OSA applied the long-term MP-2017 generational improvement scale, also developed by the
Society of Actuaries, to project mortality rates for every year after the 2010 base table. 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 its demographic assumptions based on the results of its latest demographic experience study. See OSA’s
2013-2018 Demographic Experience Study at leg.wa.gov/osa.
• OSA updated the Early Retirement Factors and Joint-and-Survivor factors used in its model to match the ones
implemented by DRS on October 1, 2020. These factors are used to value benefits for members who elect to retire
early and for survivors of members that die prior to retirement.
• The valuation includes liabilities and assets for Plan 3 members purchasing Total Allocation Portfolio annuities when
determining contribution rates and funded status.
• OSA simplified its modeling of medical premium reimbursements for survivors of duty-related deaths in LEOFF 2.
• OSA changed its method of updating certain data items that change annually, including the public safety duty-related
death lump sum and Washington state average wage. OSA set these values at 2018 and will project them into the
future using assumptions until the next Demographic Experience Study in 2025. See leg.wa.gov/osa for more
information on this method change.
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 was completed to test whether each pension plan’s fiduciary net position was
sufficient to make all projected future benefit payments for current plan members. Based on OSA’s 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
City of Auburn: 2020 Annual Comprehensive Financial Report Notes to the Financial Statements
87
(CMA’s) and simulated expected investment returns provided by the Washington State Investment Board (WSIB). The WSIB
uses the CMA’s and their target asset allocation to simulate future investment returns at various future times.
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, 2020, 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 $ 7,809,343 $ 6,234,722 $ 4,861,490
PERS 2/3 18,299,967 2,941,045 (9,707,036)
LEOFF 1 (1,478,861) (1,816,897) (2,109,355)
LEOFF 2 $ (151,379) $ (7,646,536) $ (13,783,574)
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, 2020, the City reported a total pension asset of $9,463,433 and a total pension liability of $9,175,767 for a net
total pension asset of $287,665 for its proportionate share of the net pension liabilities as follows:
Liability (Asset)
PERS 1 $ 6,234,722
PERS 2/3 2,941,045
LEOFF 1 (1,816,897)
LEOFF 2 $ (7,646,536)
City of Auburn: 2020 Annual Comprehensive Financial Report Notes to the Financial Statements
88
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
$ (1,816,897)
$ (7,646,536)
State’s proportionate share of
the net pension asset associated
with the employer
(12,289,444)
(4,889,380)
TOTAL $(14,106,641) $(12,535,916)
At June 30, the City’s proportionate share of the collective net pension liabilities was as follows:
Proportionate
Share 6/30/19
Proportionate Share
6/30/20
Change in
Proportion
PERS 1 0.184008% 0.176594% (0.007414)%
PERS 2/3 0.236778% 0.229959% (0.006819)%
LEOFF 1 0.097999% 0.096208% (0.001791)%
LEOFF 2 0.394720% 0.374857% (0.019863)%
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 2020. Historical data was obtained from a 2011 study by the Office of
the State Actuary (OSA). In fiscal year 2020, 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 2020, the state of Washington contributed 39 percent of LEOFF 2 employer contributions pursuant to RCW
41.26.725 and all other employers contributed the remaining 61 percent of employer contributions.
The collective net pension liability (asset) was measured as of June 30, 2020, and the actuarial valuation date on which the
total pension liability (asset) is based was as of June 30, 2019, with update procedures used to roll forward the total pension
liability to the measurement date.
Pension Expense
For the year ended December 31, 2020, the City recognized pension expense as follows:
Pension Expense
PERS 1 $ (5,797)
PERS 2/3 231,312
LEOFF 1 (61,648)
LEOFF 2 288,377
TOTAL $ 452,244
City of Auburn: 2020 Annual Comprehensive Financial Report Notes to the Financial Statements
89
Deferred Outflows of Resources and Deferred Inflows of Resources
At December 31, 2020, 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
(34,713)
Changes of assumptions
Changes in proportion and differences between
contributions and proportionate share of contributions
Contributions subsequent to the measurement date 644,701
TOTAL $ 644,701 $ (34,713)
PERS 2/3 Deferred Outflows
of Resources
Deferred Inflows of
Resources
Differences between expected and actual experience $ 1,052,851 $ (368,583)
Net difference between projected and actual investment
earnings on pension plan investments
(149,363)
Changes of assumptions 41,889 (2,008,988)
Changes in proportion and differences between
contributions and proportionate share of contributions
13,727
(319,240)
Contributions subsequent to the measurement date 1,056,073
TOTAL $ 2,164,540 $ (2,846,174)
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
(19,005)
Changes of assumptions
Changes in proportion and differences between
contributions and proportionate share of contributions
Contributions subsequent to the measurement date
TOTAL $ $ (19,005)
LEOFF 2 Deferred Outflows
of Resources
Deferred Inflows of
Resources
Differences between expected and actual experience $ 1,058,024 $ (135,618)
Net difference between projected and actual investment
earnings on pension plan investments
(85,227)
Changes of assumptions 11,078 (1,184,022)
Changes in proportion and differences between
contributions and proportionate share of contributions
409,826
(321,775)
Contributions subsequent to the measurement date 380,098
TOTAL $ 1,859,026 $ (1,726,643)
City of Auburn: 2020 Annual Comprehensive Financial Report Notes to the Financial Statements
90
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, 2021. 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
2021 $ (157,526) $ (1,277,302) $ (67,841) $ -
2022 (4,955) (348,653) (3,537) (570,546)
2023 48,066 (4,672) 19,286 (72,526)
2024 79,702 204,674 33,087 116,302
2025 - (148,145) - 258,971
Thereafter $ - $ (163,608) $ - $ (48,265)
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 2020, $85,819
was received from the state from taxes on fire insurance premiums, and $24,749 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.
The following table represents the plan aggregate pension amounts for 2020:
Aggregate Pension Amounts – Fire Relief and Pension Plan
Pension liabilities $ (3,562,986)
Deferred outflows of resources $ 0
Deferred inflows of resources $ 0
Pension expense/expenditures $ (250,170)
City of Auburn: 2020 Annual Comprehensive Financial Report Notes to the Financial Statements
91
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, 2019
and the December 31, 2020 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, 2019 December 31, 2020
Discount Rate – municipal bond rate (average rating
AA/Aa or higher)
2.75%
2.00%
Valuation Date January 1, 2019 January 1, 2019
Measurement Date December 31, 2019 December 31, 2020
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
Total Pension Liability
The following table represents the changes in the total pension liability for 2020:
Fire Relief and Pension Plan Increase (Decrease)
Total Pension Liability
Balances as of December 31, 2019 $ 3,452,448
Changes for the year:
Service cost 0
Interest on total pension liability 91.863
Effect of plan changes 0
Effect of economic/demographic gains or
losses
0
Effect of assumptions, changes or inputs 244,126
Benefit payments * (225,451)
Balances as of December 31, 2020 $ 3,562,986
* Benefit payments are estimated based on expected payouts.
City of Auburn: 2020 Annual Comprehensive Financial Report Notes to the Financial Statements
92
Sensitivity Analysis
The following table presents the total pension liability of the City, calculated using the discount rate of 2.00%, 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 (1.00%) or
1 percentage point higher (3.00%) than the current rate.
1% Decrease
(1.00%)
Current Discount
Rate
(2.00%)
1% Increase
(3.00%)
$ 3,936,766 $ 3,562,986 $ 3,243,525
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, 2019 to
December 31, 2019
January 1, 2020 to
December 31, 2020
Service Cost $ 0 $ 0
Interest on Total Pension Liability 114,553 91,863
Effect of Plan Changes 0 0
Contributions From State Fire Insurance Premium Tax (80,386) (85,819)
Recognition of Deferred Inflows/Outflows of
Resources:
Recognition of Economic/Demographic Gains/Losses 208,957 0
Recognition of Assumption Changes or Inputs 376,773 244,126
Pension Expense $ 619,897 $ 250,170
Deferred Outflows/Inflows of Resources
As of December 31, 2020, 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:
2021 $0
2022 0
2023 0
2024 0
2025 0
Thereafter 0
City of Auburn: 2020 Annual Comprehensive Financial Report Notes to the Financial Statements
93
NOTE 10 – 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 2020:
Aggregate OPEB Amounts
OPEB Liabilities $ 14,784,873
OPEB Assets $ 0
Deferred outflows of resources $ 0
Deferred inflows of resources $ 0
OPEB expense/expenditures $ 1,684,588
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.
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, 2020, there are 41 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 41
Retirees entitled to but not yet receiving benefits 0
Active employees 0
Total 41
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, 2020. 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.
City of Auburn: 2020 Annual Comprehensive Financial Report Notes to the Financial Statements
94
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 2.12% as of December 31, 2020. Rounding this to the nearest ¼% results in a discount rate
of 2.00% as of the December 31, 2020 measurement date.
A medical (healthcare) and dental trend rate of 4.80% 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,
2020 OPEB Liability
$ 13,017,617
$ 14,784,873
$ 16,868,768
The following presents the total OPEB liability of the City calculated using the discount rate of 2.00%, 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 (1.00%) or
one percentage point higher (3.00%) than the current rate.
1% Decrease
Current Discount
Rate
1% Increase
Total December 31,
2020 OPEB Liability
$ 16,858,283
$ 14,784,873
$ 13,069,209
City of Auburn: 2020 Annual Comprehensive Financial Report Notes to the Financial Statements
95
The following table represents the changes in total OPEB liability for 2020:
OPEB LEOFF Plan 1 Increase (Decrease)
Total OPEB Liability
Balance as of December 31, 2019 $ 13,702,359
Changes for the Year:
Service Cost 0
Interest on Total OPEB Liability 368,593
Effect of Plan Changes 0
Effect of Economic/Demographic Gains or
Losses
0
Effect of Assumptions, Changes or Inputs 1,315,995
Expected Benefit Payments (602,074)
Balance as of December 31, 2020 $ 14,784,873
For the year ended December 31, 2020, the City recognized an OPEB expense of $ 1,684,588.
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 11 – 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.
As of December 31, 2020, 262 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.
In April 2020, the Board of Trustees adopted a large employer policy, requiring newly enrolling groups with 600 or more
employees to submit medical claims experience data in order to receive a quote for medical coverage. Outside of this, 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
City of Auburn: 2020 Annual Comprehensive Financial Report Notes to the Financial Statements
96
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 2020, 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: 2020 Annual Comprehensive Financial Report Notes to the Financial Statements
97
NOTE 12 – CONSTRUCTION COMMITMENTS
At December 31, 2020, the City had the following contractual obligations on construction projects:
NOTE 13 – 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 2020, of the $25,497 net appreciation on investments, all was available for expenditures. Amounts that are available
for expenditure are reflected as assigned fund balance.
NOTE 14 – JOINT VENTURES / RELATED PARTY
Valley Communications Center
The “Valley Communications Center” was established August 20, 1976, when an Interlocal Agreement was entered into
by four participating municipal corporations: Renton, Kent, Auburn and Tukwila. The provisions and terms of the
“Interlocal Cooperation Act”, pursuant to RCW 39.34, sanction the agreement. The initial duration of the agreement
was five years and thereafter is automatically extended for consecutive two-year periods, unless terminated by one or
more of the participating cities. Any such termination must be in writing and served upon the other cities on or before
July 1 in any one year and such termination shall then become effective on the last day of such year.
On August 4, 1999 the Administration Board of Valley Communications Center voted to include the City of Federal
Way as a full participating member city as of January 1, 2000. The five participating municipal corporations that include
the cities of Renton, Kent, Auburn, Tukwila, and Federal Way on April 17, 2000 entered into a new Interlocal
Agreement, pursuant to RCW 39.34, et seq. This agreement reaffirmed Valley Communications Center as a
governmental administration agency pursuant to RCW 39.34.030 (3) (b).
SCHEDULE OF OUTSTANDING CONSTRUCTION OBLIGATIONS
As of December 31, 2020
Amount Outstanding
Street projects 3,480,408$
Traffic projects 187,347
Utilities projects 952,520
Other projects 48,660
Total commitments 4,668,935$
City of Auburn: 2020 Annual Comprehensive Financial Report Notes to the Financial Statements
98
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 2020 cost distribution for the five participating cities is as follows:
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.
Dispatchable Percent of
Calls Total *
Kent 108,282 27.46%
Renton 85,717 21.74%
Auburn 84,806 21.51%
Tukwila 34,870 8.84%
Federal Way 80,647 20.45%
Total 394,322 100.00%
*Distribution of current year net income is based on these budgeted percentages.
SOURCE: Valley Com Center - 2020 Owner Equity Allocation
City of Auburn: 2020 Annual Comprehensive Financial Report Notes to the Financial Statements
99
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, 2019
$8,797,965
$6,430,886
$6,633,680 $3,169,346
$5,451,596 $ 30,483,473
Current year change
766,590 606,843 600,390 246,866
570,949 2,791,638
Equity Dec 31, 2020
$9,564,555
$7,037,729
$7,234,070 $3,416,212
$6,022,545 $ 33,275,111
% of equity 28.74% 21.15% 21.74% 10.27% 18.10%
% of 2020
distribution 27.46% 21.74% 21.51% 8.84% 20.45%
SOURCE: Valley Com Center – 2020 Owner Equity Allocation
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.
City of Auburn: 2020 Annual Comprehensive Financial Report Notes to the Financial Statements
100
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.
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).
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.
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: 2020 Annual Comprehensive Financial Report Notes to the Financial Statements
101
The following is a summary of the debt service requirements for the 2019 Bonds as of December 31, 2020:
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 summary of the Capital Contributions for the 2019
Bonds is condensed (unaudited) financial information as of December 31, 2020 in relation to SCORE:
Completed financial statements for SCORE and SCORE PDA can be obtained at SCORE, Attn: Finance Director, 20817
17th Avenue South, Des Moines, WA. 98198.
Auburn Burien Des Moines Renton SeaTac Tukwila
Year Principal Interest Total 34.94%4.82%6.02%40.96%3.62%9.64%
2021 1,840,000 2,069,700 3,909,700 1,366,049 188,448 235,364 1,601,413 141,531 376,895
2022 1,915,000 1,996,100 3,911,100 1,366,538 188,515 235,448 1,601,987 141,582 377,030
2023 1,990,000 1,919,500 3,909,500 1,365,979 188,438 235,352 1,601,331 141,524 376,876
2024 2,070,000 1,839,900 3,909,900 1,366,119 188,457 235,376 1,601,495 141,538 376,914
2025 2,155,000 1,757,100 3,912,100 1,366,888 188,563 235,508 1,602,396 141,618 377,126
2026-2030 12,490,000 7,058,750 19,548,750 6,830,333 942,250 1,176,835 8,007,168 707,665 1,884,500
2031-2035 15,745,000 3,800,650 19,545,650 6,829,250 942,100 1,176,648 8,005,898 707,553 1,884,201
2036-2038 11,025,000 704,450 11,729,450 4,098,270 565,359 706,113 4,804,384 424,606 1,130,719
Totals 49,230,000$ 21,146,150$ 70,376,150$ 24,589,426 3,392,130 4,236,644 28,826,072 2,547,617 6,784,261
Debt Service Allocation to Owner CitiesDebt Service Schedule
Summary of Debt Service Requirements - Refunding Bonds, 2019 (Ref 2009A & 2009B)
Member City 2019 Percent of Equity 2019 Equity Balance 2020 Percent of Equity 2020 Apportionment 2020 Equity Balance
Auburn 42.75%13,485,956$ 43.05%(518,256)$ 12,967,700$
Burien 5.21%1,642,751 5.14%(94,368) 1,548,383$
Des Moines 4.65%1,465,438 4.62%(72,731) 1,392,707$
Renton 31.93%10,070,783 31.70%(524,445) 9,546,337$
SeaTac 7.59%2,395,411 7.66%(88,853) 2,306,559$
Tukwila 7.87%2,481,579 7.83%(123,602) 2,357,977$
Grand Totals 100.00%31,541,918$ 100.00%(1,422,255)$ 30,119,663$
South Correctional Entity (SCORE)
City of Auburn: 2020 Annual Comprehensive Financial Report Notes to the Financial Statements
102
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:
NOTE 15 – 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. Premium and benefit payments for retired LEOFF 1 firefighters
for 2020 were $192,830. Medical premiums and benefit payments made under the Fire Relief and Pension Plan for
2020 were $35,902.
NOTE 16 – CONTINGENCIES AND LITIGATIONS
As of December 31, 2020 a number of claims were pending against the City for damages and legal actions. While the
outcome of these actions is uncertain, no uncovered losses are anticipated at this time with these pending claims. In the
event of a liability finding against the City, it is anticipated that any potential adverse judgment against the City also
would be subject to coverage under the City’s general liability insurance.
The City participates in a number of federal and state assisted programs. These grants are subject to audit by the grantors
or their representatives. Such audits could result in requests for reimbursement to grantor agencies for expenditures
disallowed under the terms of the grants. The City’s management believes that such disallowances, if any, will be
immaterial.
Balance Additions Reductions Balance
12/31/2019 12/31/2020
Valley Communication Public Dev Auth -$ -$ -$ -$
SCORE Public Development Authority 17,838,617 - (637,655) 17,200,962
Due to Other Governments 17,838,617 - (637,655) 17,200,962
Valley Communications Center 6,633,680 600,390 - 7,234,070
South Correctional Entity (SCORE)13,485,956 (518,256) - 12,967,700
Equity Share 20,119,636 82,134 - 20,201,770
Total Investment in Joint Ventures 37,402,732$
Investment in Joint Ventures
City of Auburn: 2020 Annual Comprehensive Financial Report Notes to the Financial Statements
103
NOTE 17 – 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 162 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 $21 million in limits above the self-insured layer is provided by reinsurance. Total limits
are $25 million per occurrence subject to aggregate sublimits. The Board of Directors determines the limits and terms of
coverage annually.
Insurance coverage for property, automobile physical damage, fidelity, inland marine, and boiler and machinery coverage
are purchased on a group basis. Various deductibles apply by type of coverage. Property coverage is self-funded from the
members’ deductible to $750,000, for all perils other than flood and earthquake, and insured above that to $400 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.
City of Auburn: 2020 Annual Comprehensive Financial Report Notes to the Financial Statements
104
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 became 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, 2020 incurred but not reported and claims
payable were estimated at $932,000. At December 31, 2020 fund equity was $2,426,239. The City carriers excess
worker’s 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 GASB 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 2020 and 2019 were:
CHANGES OF ESTIMATED CLAIMS LIABILITIES FOR 2020 AND 2019
Workers Compensation
2020 2019
Beg. of Year Claims Liabilities $932,000 $1,009,000
Less: Claim Payments (91,396) (126,178)
Plus: Claims and Changes in Estimates 91,396 49,178
End of Year Claims Liabilities $932,000 $932,000
NOTE 18 – 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 met, exemption begins January 1st, of
the year immediately following the calendar year of issuance of the final certificate of tax exemption. 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, 2020.
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 2020 was $38,603.
City of Auburn: 2020 Annual Comprehensive Financial Report Notes to the Financial Statements
105
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 2020 was $42,131.
NOTE 19 – PRIOR PERIOD ADJUSTMENT
With the implementation of GASB Statement No. 84 Fiduciary Activities in fiscal year 2020, the city reported a prior
period adjustment of $737,461 on its fiduciary financial statements for the effects of new guidance. Agency Funds are
now referred to as Custodial Funds. Net position was not previously reported for agency funds, but is not reported
for custodial funds. In addition, the change in net position was not previously reported but is now reported for
custodial funds.
NOTE 20 – SUBSEQUENT EVENT - COVID-19 PANDEMIC
In February 2020, the Governor of the State of Washington declared a state of emergency in response to the spread of
the deadly new virus known as COVID-19. In the months following the declaration, precautionary measures to slow
the spread of the virus were ordered. These measures included closing schools, cancelling public events, limiting public
and private gatherings, and restricting business operations, travel and non-essential activities.
In March 2020, the Mayor issued a Proclamation of Emergency as a proactive measure to protect the health and safety
of city residents. While this measure has subsequently led to the closure of city facilities to the public in conjunction
with the Governor’s Stay Home, Stay Healthy order, city staff continue to deliver municipal services through
teleworking.
The length of time these measures will continue to be in place, and the full extent of the financial impact on the city is
unknown at this time. The Mayor and Leadership Team continue to monitor the situation during this period of
uncertainty.
City of Auburn: 2020 Annual Comprehensive Financial Report Notes to the Financial Statements
106
City of Auburn: 2020 Annual Comprehensive Financial Report Required Supplemental Information
107
REQUIRED SUPPLEMENTARY INFORMATION
Schedule of Proportionate Share of the Net Pension Liability
As of June 30, 2020
Last 10 Fiscal Years*
PERS 1 2020 2019 2018 2017 2016 2015
Employer's proportion of the net pension liability (asset)0.176594%0.184008%0.190096%0.192614%0.194185%0.192878%
Employer's proportionate share of the net pension liability (asset)6,234,722$ 7,075,761$ 8,489,752$ 9,139,685$ 10,428,649$ 10,089,313$
Covered payroll 26,748,878$ 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 23.31%27.43%34.14%37.95%45.45%46.31%
Plan fiduciary net position as a percentage of the total pension liability 68.64%67.12%63.22%61.24%57.03%59.10%
PERS 2/3 2020 2019 2018 2017 2016 2015
Employer's proportion of the net pension liability (asset)0.229959%0.236778%0.239249%0.243488%0.247760%0.241739%
Employer's proportionate share of the net pension liability (asset)2,941,045$ 2,299,919$ 4,084,964$ 8,460,044$ 12,223,580$ 8,637,472$
Covered payroll 26,748,878$ 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 11.00%8.93%16.56%35.39%53.77%40.25%
Plan fiduciary net position as a percentage of the total pension liability 97.22%97.77%95.77%90.97%85.82%89.20%
LEOFF 1 2020 2019 2018 2017 2016 2015
Employer's proportion of the net pension liability (asset)0.096208%0.097999%0.101761%0.102451%0.101574%0.103718%
Employer's proportionate share of the net pension liability (asset)(1,816,897)$ (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%0.00%
Plan fiduciary net position as a percentage of the total pension liability 146.88%148.78%144.42%136.00%123.74%127.36%
LEOFF 2 2020 2019 2018 2017 2016 2015
Employer's proportion of the net pension liability (asset)0.374857%0.394720%0.403472%0.370954%0.359661%0.354511%
Employer's proportionate share of the net pension liability (asset)(7,646,536)$ (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 (4,889,380)$ (5,988,390)$ (5,303,752)$ (3,339,178)$ (1,363,764)$ (1,450,178)$
Total (12,535,916)$ (15,132,841)$ (13,495,113)$ (8,486,818)$ (3,455,660)$ (3,643,664)$
Covered payroll 13,661,010$ 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 -55.97%-69.02%-64.51%-44.29%-19.10%-21.22%
Plan fiduciary net position as a percentage of the total pension liability 115.83%119.43%118.50%113.40%106.04%111.67%
City of Auburn: 2020 Annual Comprehensive Financial Report Required Supplemental Information
108
REQUIRED SUPPLEMENTARY INFORMATION
Schedule of Proportionate Share of the Net Pension Liability
As of June 30, 2020
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 9.
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: 2020 Annual Comprehensive Financial Report Required Supplemental Information
109
REQUIRED SUPPLEMENTARY INFORMATION
Schedule of Employer Contributions
As of December 31, 2020
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 9.
PERS 1 2020 2019 2018 2017 2016 2015
Statutorily or contractually required contributions 1,318,974$ 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 (1,318,974)$ (1,310,731)$ (1,296,482)$ (1,216,069)$ (1,132,885)$ (1,001,824)$
Contribution deficiency (excess)-$ -$ -$ -$ -$ -$
Covered payroll 26,726,280$ 26,516,814$ 25,212,705$ 24,538,921$ 23,510,382$ 22,436,909$
Contributions as a percentage of covered payroll 4.94%4.94%5.14%4.96%4.82%4.47%
PERS 2/3 2020 2019 2018 2017 2016 2015
Statutorily or contractually required contributions 2,121,829$ 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 (2,121,829)$ (2,047,116)$ (1,941,592)$ (1,714,887)$ (1,495,562)$ (1,286,928)$
Contribution deficiency (excess)-$ -$ -$ -$ -$ -$
Covered payroll 26,726,280$ 26,516,814$ 25,087,758$ 24,350,435$ 23,330,702$ 22,130,501$
Contributions as a percentage of covered payroll 7.94%7.72%7.74%7.04%6.41%5.82%
LEOFF 2 2020 2019 2018 2017 2016 2015
Statutorily or contractually required contributions 737,023$ 730,140$ 708,333$ 639,662$ 594,665$ 551,812$
Contributions in relation to the statutorily or contractually required contributions (737,023)$ (730,140)$ (708,333)$ (639,662)$ (594,665)$ (551,812)$
Contribution deficiency (excess)-$ -$ -$ -$ -$ -$
Covered payroll 13,852,684$ 13,597,937$ 13,044,797$ 11,992,821$ 11,370,216$ 10,553,437$
Contributions as a percentage of covered payroll 5.32%5.37%5.43%5.33%5.23%5.23%
City of Auburn: 2020 Annual Comprehensive Financial Report Required Supplemental Information
110
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 2.75% as of December 31,
2019 to 2.00% as of December 31, 2020.
Significant methods and assumptions used in calculating the actuarial determined contribution are presented in Note 9.
2020 2019 2018 2017 2016 2015 2014 2013 2012 2011
Total Pension Liability - Beginning 3,452,448$ 2,973,304$ 3,212,435$ 3,218,004$ 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
Interest on Total Pension Liability 91,863 114,553 108,873 116,957 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
Effect of Economic/Demographic Gains (Losses)- 208,957 - - N/A N/A N/A N/A N/A N/A
Effect of Assumption Changes or Inputs 244,126 376,773 (142,719) 77,612 N/A N/A N/A N/A N/A N/A
Benefit Payments (225,451) (221,139) (205,285) (200,138) N/A N/A N/A N/A N/A N/A
Net Change in Total Pension Liability 110,538 479,144 (239,131) (5,569) N/A N/A N/A N/A N/A N/A
Total Pension Liability - Ending 3,562,986$ 3,452,448$ 2,973,304$ 3,212,435$ 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
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: 2020 Annual Comprehensive Financial Report Required Supplemental Information
111
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 2.75% as of December 31,
2019 to 2.00% as of December 31, 2020.
Significant methods and assumptions used in calculating the actuarial determined contribution are presented in Note 10.
2020 2019 2018 2017 2016 2015 2014 2013 2012 2011
Total OPEB Liability - Beginning 13,702,359$ 16,228,865$ 17,472,360$ 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 OPEB Liability 368,593 636,891 597,724 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
Effect of Economic/Demographic Gains (Losse - (3,427,650) - N/A N/A N/A N/A N/A N/A N/A
Effect of Assumption Changes or Inputs 1,315,995 883,507 (1,045,269) N/A N/A N/A N/A N/A N/A N/A
Expected Benefit Payments (602,074) (619,254) (795,950) N/A N/A N/A N/A N/A N/A N/A
Total OPEB Liability - Ending 14,784,873$ 13,702,359$ 16,228,865$ 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 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: 2020 Annual Comprehensive Financial Report Required Supplemental Information
112
City of Auburn: 2020 Annual Comprehensive Financial Report Fund Financial Statements & Schedules
113
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: 2020 Annual Comprehensive Financial Report Fund Financial Statements & Schedules
114
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 22,457,119$ 95,581$ 1,265,874$ 2,022,262$ 25,840,836$
Receivables:
Customer Accounts 465,738 - - - 465,738
Special Assessments - 892 - - 892
Due From Other Governmental Units 614,286 - - - 614,286
Total Assets 23,537,143 96,473 1,265,874 2,022,262 26,921,752
LIABILITIES, DEFERRED INFLOWS AND FUND BALANCES:
Liabilities:
Current Payables 712,883 - 17,453 - 730,336
Interfund Payable (Note 5)100,000 - - - 100,000
Total Liabilities 812,883 - 17,453 - 830,336
Deferred Inflow of Resources:
Unavailable Revenue-Special Assessments - 892 - - 892
Total Deferred Inflow of Resources - 892 - - 892
Fund Balances:
Nonspendable - - - 1,925,183 1,925,183
Restricted 18,506,104 2,873 893,335 - 19,402,312
Committed 3,910,112 - - - 3,910,112
Assigned 308,044 92,708 355,086 97,079 852,917
Total Fund Balances 22,724,260 95,581 1,248,421 2,022,262 26,090,524
Total Liabilities, Deferred Inflows and Fund
Balances 23,537,143$ 96,473$ 1,265,874$ 2,022,262$ 26,921,752$
December 31, 2020
City of Auburn, Washington
COMBINING BALANCE SHEET
NON-MAJOR GOVERNMENT FUNDS
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115
Total Total Total Total Total
Nonmajor Nonmajor Nonmajor Nonmajor Nonmajor
Special Revenue Debt Service Capital Projects Permanent Governmental
REVENUES:
Taxes:
Property -$ -$ 243,356$ -$ 243,356$
Retail Sales & Use - 260,518 - - 260,518
Excise 102,867 - - - 102,867
Other 59,875 - - - 59,875
Intergovernmental 2,069,055 227,675 150,000 - 2,446,730
Charges for Services 2,084,020 - - 63,119 2,147,139
Special Assessments - 712 - - 712
Investment Earnings 88,528 211 1,580 25,497 115,816
Miscellaneous 72,015 256 60,978 - 133,249
Total Revenues 4,476,360 489,372 455,914 88,616 5,510,262
EXPENDITURES:
Current:
General Government - - 1,051 - 1,051
Security of Persons & Property 347,578 - - - 347,578
Transportation 3,511,345 - - - 3,511,345
Economic Environment 794,779 - - - 794,779
Debt Service:
Principal - 1,535,616 - - 1,535,616
Interest - 811,413 - - 811,413
Capital Outlay - - 1,262,096 - 1,262,096
Total Expenditures 4,653,702 2,347,029 1,263,147 - 8,263,878
Excess (Deficiency) of Revenues
Over (Under) Expenditures (177,342) (1,857,657) (807,233) 88,616 (2,753,616)
OTHER FINANCING SOURCES (USES):
Issuance of Refunding Bond - 19,480,000 - - 19,480,000
Debt Premium - 3,989,749 - - 3,989,749
Payment to Escrow Agent - Refunded Bond - (23,469,749) - - (23,469,749)
Transfers In (Note 5)4,075,074 3,293,794 1,010,499 - 8,379,367
Transfers Out (Note 5)(1,648,404) (1,380,555) - (55,400) (3,084,359)
Total Other Financing Sources (Uses)2,426,670 1,913,239 1,010,499 (55,400) 5,295,008
Net Change in Fund Balances 2,249,328 55,582 203,266 33,216 2,541,392
Fund Balances - Beginning 20,474,932 39,999 1,045,155 1,989,046 23,549,132
Fund Balances - Ending 22,724,260$ 95,581$ 1,248,421$ 2,022,262$ 26,090,524$
City of Auburn, Washington
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
NON-MAJOR GOVERNMENT FUNDS
For the Year Ended December 31, 2020
City of Auburn: 2020 Annual Comprehensive Financial Report Fund Financial Statements & Schedules
116
City of Auburn: 2020 Annual Comprehensive Financial Report Fund Financial Statements & Schedules
117
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: 2020 Annual Comprehensive Financial Report Fund Financial Statements & Schedules
118
Page 1 of 2
Hotel/Arterial Housing
Local Motel Street Drug Community
Streets Tax Preservation Forfeiture Development
ASSETS:
Cash and Cash Equivalents 3,330,115$ 315,882$ 2,954,137$ 1,039,027$ 69,555$
Receivables:
Customer Accounts - - 205,371 - 260,367
Due From Other Governmental Units - - 588,935 5,323 20,028
Total Assets 3,330,115 315,882 3,748,443 1,044,350 349,950
LIABILITIES AND FUND BALANCES:
Liabilities:
Current Payables 41,543 75 362,517 20,849 207,625
Interfund Payable (Note 5)- - - - 100,000
Total Liabilities 41,543 75 362,517 20,849 307,625
Fund Balances:
Restricted - 315,807 2,570,286 998,267 42,325
Committed 3,216,840 - 693,272 - -
Assigned 71,732 - 122,368 25,234 -
Total Fund Balances 3,288,572 315,807 3,385,926 1,023,501 42,325
Total Liabilities and Fund Balances 3,330,115$ 315,882$ 3,748,443$ 1,044,350$ 349,950$
City of Auburn, Washington
COMBINING BALANCE SHEET
NON-MAJOR SPECIAL REVENUE FUNDS
December 31, 2020
City of Auburn: 2020 Annual Comprehensive Financial Report Fund Financial Statements & Schedules
119
Page 2 of 2
Total
Business Nonmajor
Recreational Improvement Mitigation Special Revenue
Trails Area Fees Funds
81,712$ 169,395$ 14,497,296$ 22,457,119$
- - - 465,738
- - - 614,286
81,712 169,395 14,497,296 23,537,143
- - 80,274 712,883
- - - 100,000
- - 80,274 812,883
80,163 166,486 14,332,770 18,506,104
- - - 3,910,112
1,549 2,909 84,252 308,044
81,712 169,395 14,417,022 22,724,260
81,712$ 169,395$ 14,497,296$ 23,537,143$
City of Auburn: 2020 Annual Comprehensive Financial Report Fund Financial Statements & Schedules
120
Page 1 of 2
Hotel/Arterial Housing
Local Motel Street Drug Community
Streets Tax Preservation Forfeiture Development
REVENUES:
Taxes:
Excise -$ 102,867$ -$ -$ -$
Other - - - - -
Intergovernmental - - 1,331,753 - 730,302
Charges for Services - 1,777 168,887 9,136 -
Investment Earnings 10,301 975 7,297 11,955 -
Miscellaneous - - - 72,015 -
Total Revenues 10,301 105,619 1,507,937 93,106 730,302
EXPENDITURES:
Current:
Security of Persons and Property - - - 347,578 -
Transportation 1,172,341 - 2,339,004 - -
Economic Environment - 38,998 - - 730,881
Total Expenditures 1,172,341 38,998 2,339,004 347,578 730,881
Excess (Deficiency) of Revenues
Over (Under) Expenditures (1,162,040) 66,621 (831,067) (254,472) (579)
OTHER FINANCING SOURCES (USES):
Transfers In (Note 5)1,900,000 - 2,175,074 - -
Transfers Out (Note 5)- - - - -
Total Other Financing Sources (Uses)1,900,000 - 2,175,074 - -
Net Change in Fund Balances 737,960 66,621 1,344,007 (254,472) (579)
Fund Balances - Beginning 2,550,612 249,186 2,041,919 1,277,973 42,904
Fund Balances - Ending 3,288,572$ 315,807$ 3,385,926$ 1,023,501$ 42,325$
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, 2020
City of Auburn: 2020 Annual Comprehensive Financial Report Fund Financial Statements & Schedules
121
Page 2 of 2
Total
Business Nonmajor
Recreational Improvement Mitigation Special Revenue
Trails Area Fees Funds
-$ -$ -$ 102,867$
- 59,875 - 59,875
7,000 - - 2,069,055
- - 1,904,220 2,084,020
287 595 57,118 88,528
- - - 72,015
7,287 60,470 1,961,338 4,476,360
- - - 347,578
- - - 3,511,345
- 24,900 - 794,779
- 24,900 - 4,653,702
7,287 35,570 1,961,338 (177,342)
- - - 4,075,074
- - (1,648,404) (1,648,404)
- - (1,648,404) 2,426,670
7,287 35,570 312,934 2,249,328
74,425 133,825 14,104,088 20,474,932
81,712$ 169,395$ 14,417,022$ 22,724,260$
City of Auburn: 2020 Annual Comprehensive Financial Report Fund Financial Statements & Schedules
122
Variance with
Final Final Budget
Original Adopted Actual Positive
(GAAP Basis)(GAAP Basis)Results (Negative)
REVENUES:
Investment Earnings 2,000$ -$ 10,301$ 10,301$
Total Revenues 2,000 - 10,301 10,301
EXPENDITURES:
Current:
Transportation 1,916,300 3,128,834 1,172,341 1,956,493
Total Expenditures 1,916,300 3,128,834 1,172,341 1,956,493
Excess (Deficiency) of Revenues
Over (Under) Expenditures (1,914,300) (3,128,834) (1,162,040) 1,966,794
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 (14,300) (1,228,834) 737,960 1,966,794
Fund Balances - Beginning 956,880 2,550,612 2,550,612 -
Fund Balances - Ending 942,580$ 1,321,778$ 3,288,572$ 1,966,794$
Budget Amounts
For the Year Ended December 31, 2020
City of Auburn, Washington
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
LOCAL STREETS SPECIAL REVENUE FUND
City of Auburn: 2020 Annual Comprehensive Financial Report Fund Financial Statements & Schedules
123
Variance with
Final Final Budget
Original Adopted Actual Positive
(GAAP Basis)(GAAP Basis)Results (Negative)
REVENUES:
Taxes:
Excise 160,000$ 103,000$ 102,867$ (133)$
Charges for Services - 5,000 1,777 (3,223)
Investment Earnings 4,000 1,900 975 (925)
Total Revenues 164,000 109,900 105,619 (4,281)
EXPENDITURES:
Current:
Economic Environment 170,310 205,310 38,998 166,312
Total Expenditures 170,310 205,310 38,998 166,312
Excess (Deficiency) of Revenues
Over (Under) Expenditures (6,310) (95,410) 66,621 162,031
Net Change in fund Balances (6,310) (95,410) 66,621 162,031
Fund Balances - Beginning 102,121 249,186 249,186 -
Fund Balances - Ending 95,811$ 153,776$ 315,807$ 162,031$
Budget Amounts
For the Year Ended December 31, 2020
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: 2020 Annual Comprehensive Financial Report Fund Financial Statements & Schedules
124
Variance with
Final Final Budget
Original Adopted Actual Positive
(GAAP Basis)(GAAP Basis)Results (Negative)
REVENUES:
Taxes:
Interfund Utility 689,100$ 66,900$ -$ (66,900)$
Utility 1,360,000 126,800 - (126,800)
Intergovernmental 1,753,640 3,880,589 1,331,753 (2,548,836)
Charges for Services - - 168,887 168,887
Investment Earnings 29,900 13,000 7,297 (5,703)
Total Revenues 3,832,640 4,087,289 1,507,937 (2,579,352)
EXPENDITURES:
Current:
Transportation 3,967,840 7,209,224 2,339,004 4,870,220
Total Expenditures 3,967,840 7,209,224 2,339,004 4,870,220
Excess (Deficiency) of Revenues
Over (Under) Expenditures (135,200) (3,121,935) (831,067) 2,290,868
OTHER FINANCING SOURCES (USES):
Transfers In (Note 5)- 2,618,020 2,175,074 (442,946)
Total Other Financing Sources (Uses)- 2,618,020 2,175,074 (442,946)
Net Change in Fund Balances (135,200) (503,915) 1,344,007 1,847,922
Fund Balances - Beginning 1,369,417 2,041,919 2,041,919 -
Fund Balances - Ending 1,234,217$ 1,538,004$ 3,385,926$ 1,847,922$
Budget Amounts
For the Year Ended December 31, 2020
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: 2020 Annual Comprehensive Financial Report Fund Financial Statements & Schedules
125
Variance with
Final Final Budget
Original Adopted Actual Positive
(GAAP Basis)(GAAP Basis)Results (Negative)
REVENUES:
Charges for Services 18,000$ 18,000$ 9,136$ (8,864)$
Investment Earnings 3,000 3,000 11,955 8,955
Miscellaneous 131,000 131,000 72,015 (58,985)
Total Revenues 152,000 152,000 93,106 (58,894)
EXPENDITURES:
Current:
Security of Persons & Property 310,956 439,456 347,578 91,878
Total Expenditures 310,956 439,456 347,578 91,878
Excess (Deficiency of Revenues
Over (Under) Expenditures (158,956) (287,456) (254,472) 32,984
OTHER FINANCING SOURCES (USES):
Transfers Out (Note 5)- (7,000) - 7,000
Total Other Financing Sources and Uses - (7,000) - 7,000
Net Change in Fund Balances (158,956) (294,456) (254,472) 39,984
Fund Balances - Beginning 233,460 1,277,973 1,277,973 -
Fund Balances - Ending 74,504$ 983,517$ 1,023,501$ 39,984$
Budget Amounts
For the Year Ended December 31, 2020
City of Auburn, Washington
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
DRUG FORFEITURE SPECIAL REVENUE FUND
City of Auburn: 2020 Annual Comprehensive Financial Report Fund Financial Statements & Schedules
126
Variance with
Final Final Budget
Original Adopted Actual Positive
(GAAP Basis)(GAAP Basis)Results (Negative)
REVENUES:
Intergovernmental 539,970$ 1,201,550$ 730,302$ (471,248)$
Total Revenues 539,970 1,201,550 730,302 (471,248)
EXPENDITURES:
Current:
Economic Environment 539,970 1,201,550 730,881 470,669
Total Expenditures 539,970 1,201,550 730,881 470,669
Excess (Deficiency) of Revenues
Over (Under) Expenditures - - (579) (579)
Net Change in Fund Balances - - (579) (579)
Fund Balances - Beginning 36,458 42,904 42,904 -
Fund Balances - Ending 36,458$ 42,904$ 42,325$ (579)$
Budget Amounts
For the Year Ended December 31, 2020
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: 2020 Annual Comprehensive Financial Report Fund Financial Statements & Schedules
127
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 - 287 287
Total Revenues 7,100 7,000 7,287 287
Excess (Deficiency) of Revenues
Over (Under) Expenditures 7,100 7,000 7,287 287
Net Change in Fund Balances 7,100 7,000 7,287 287
Fund Balances - Beginning 71,426 74,425 74,425 -
Fund Balances - Ending 78,526$ 81,425$ 81,712$ 287$
Budget Amounts
For the Year Ended December 31, 2020
City of Auburn, Washington
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
RECREATION TRAILS SPECIAL REVENUE FUND
City of Auburn: 2020 Annual Comprehensive Financial Report Fund Financial Statements & Schedules
128
Variance with
Final Final Budget
Original Adopted Actual Positive
(GAAP Basis)(GAAP Basis)Results (Negative)
REVENUES:
Taxes:
Other 55,000$ 55,000$ 59,875$ 4,875$
Investment Earnings 200 - 595 595
Total Revenues 55,200 55,000 60,470 5,470
EXPENDITURES:
Current:
Economic Environment 90,000 90,000 24,900 65,100
Total Expenditures 90,000 90,000 24,900 65,100
Excess (Deficiency) of Revenues
Over (Under) Expenditures (34,800) (35,000) 35,570 70,570
Net Change in Fund Balances (34,800) (35,000) 35,570 70,570
Fund Balances - Beginning 74,673 133,825 133,825 -
Fund Balances - Ending 39,873$ 98,825$ 169,395$ 70,570$
Budget Amounts
For the Year Ended December 31, 2020
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: 2020 Annual Comprehensive Financial Report Fund Financial Statements & Schedules
129
Variance with
Final Final Budget
Original Adopted Actual Positive
(GAAP Basis)(GAAP Basis)Results (Negative)
REVENUES:
Investment Earnings 197,800$ 85,800$ 196,829$ 111,029$
Total Revenues 197,800 85,800 196,829 111,029
Excess (Deficiency) of Revenues
Over (Under) Expenditures 197,800 85,800 196,829 111,029
OTHER FINANCING SOURCES (USES):
Transfers Out (Note 5)(4,100,000) (4,142,200) (2,000,000) 2,142,200
Total Other Financing Sources (Uses)(4,100,000) (4,142,200) (2,000,000) 2,142,200
Net Change in Fund Balances (3,902,200) (4,056,400) (1,803,171) 2,253,229
Fund Balances - Beginning 10,162,312 10,425,515 10,425,515 -
Fund Balances - Ending 6,260,112$ 6,369,115$ 8,622,344$ 2,253,229$
RECONCILIATION OF PERSPECTIVE DIFFERENCE BETWEEN BUDGETARY INFORMATION AND
GENERALLY ACCEPTED ACCOUNTING PRINCIPLES (GAAP):
The Cumulative Reserve Fund is combined with
the General Fund for purposes of GASB Statement 54 (8,622,344)
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, 2020
City of Auburn, Washington
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
CUMULATIVE RESERVE SPECIAL REVENUE FUND
City of Auburn: 2020 Annual Comprehensive Financial Report Fund Financial Statements & Schedules
130
Variance with
Final Final Budget
Original Adopted Actual Positive
(GAAP Basis)(GAAP Basis)Results (Negative)
REVENUES:
Charges for Services 1,102,000$ 1,102,000$ 1,904,220$ 802,220$
Investment Earnings 204,700 204,700 57,118 (147,582)
Total Revenues 1,306,700 1,306,700 1,961,338 654,638
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 1,231,700 1,231,700 1,961,338 729,638
OTHER FINANCING SOURCES (USES):
Transfers Out (Note 5)(666,600) (5,378,922) (1,648,404) 3,730,518
Total Other Financing Sources (Uses)(666,600) (5,378,922) (1,648,404) 3,730,518
Net Change in Fund Balances 565,100 (4,147,222) 312,934 4,460,156
Fund Balances - Beginning 9,101,987 14,104,088 14,104,088 -
Fund Balances - Ending 9,667,087$ 9,956,866$ 14,417,022$ 4,460,156$
Budget Amounts
For the Year Ended December 31, 2020
City of Auburn, Washington
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
MITIGATION SPECIAL REVENUE FUND
City of Auburn: 2020 Annual Comprehensive Financial Report Fund Financial Statements & Schedules
131
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.
2020 A Series and B Series Refunding General Obligation Bonds
The 2020 A Series accounts for the debt service on the refund of the 2010 B Series General
Obligation Bonds which was to finance acquisition costs of certain condominium units in the City
Hall Annex. The 2020 B Series accounts for the debt service on the refund of the 2010 D Series
General Obligation Bonds which was to finance a portion of the downtown infrastructure
improvements in the City’s revitalization area.
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.
City of Auburn: 2020 Annual Comprehensive Financial Report Fund Financial Statements & Schedules
132
Total
2020 2010 2010 2016 Nonmajor
Refunding A & B C & D Local Combined Refunding LID Special Debt Service
A&B (2010 B&D)Annex Revitalization Golf/Cemetery Guarantee Assessments Funds
ASSETS:
Cash and Cash Equivalents 92,708$ -$ -$ -$ 1,676$ 1,197$ 95,581$
Special Assessments - - - - - 892 892
Total Assets 92,708 - - - 1,676 2,089 96,473
LIABILITIES, DEFERRED INFLOWS AND FUND BALANCES:
Deferred Inflows of Resources:
Unavailable Revenue - Special Assessments - - - - - 892 892
Total Deferred Inflows of Resources - - - - - 892 892
Fund Balances:
Restricted - - - - 1,676 1,197 2,873
Assigned 92,708 - - - - - 92,708
Total Fund Balances 92,708 - - - 1,676 1,197 95,581
Total Liabilities, Deferred Inflows and Fund Balances 92,708$ -$ -$ -$ 1,676$ 2,089$ 96,473$
City of Auburn, Washington
COMBINING BALANCE SHEET
NON-MAJOR DEBT SERVICE FUNDS
December 31, 2020
City of Auburn: 2020 Annual Comprehensive Financial Report Fund Financial Statements & Schedules
133
Total
2020 2010 2010 2016 Nonmajor
Refunding A & B C & D Local Combined Refunding L I D Special Debt Service
A&B (2010 B&D)Annex Revitalization Golf/Cemetery Guarantee Assessments Funds
REVENUES:
Taxes:
Retail Sales & Use -$ -$ 260,518$ -$ -$ -$ 260,518$
Special Assessments - - - - - 712 712
Intergovernmental - 174,488 53,187 - - - 227,675
Investment Earnings - - 204 - 7 - 211
Miscellanous - 14 5 - - 237 256
Total Revenues - 174,502 313,914 - 7 949 489,372
EXPENDITURES:
Debt Service:
Principal 1,195,000 - - 340,616 - - 1,535,616
Interest 92,847 524,164 159,779 34,623 - - 811,413
Total Expenditures 1,287,847 524,164 159,779 375,239 - - 2,347,029
Excess (Deficiency) of Revenues
Over (Under) Expenditures (1,287,847) (349,662) 154,135 (375,239) 7 949 (1,857,657)
OTHER FINANCING SOURCES (USES):
Issuance of Refunding Bond 19,480,000 - - - - - 19,480,000
Debt Premium 3,989,749 - - - - - 3,989,749
Payment to Escrow Agent - Refunded Bond (23,469,749) - - - - - (23,469,749)
Transfers In (Note 5)1,380,555 1,317,400 220,600 375,239 - - 3,293,794
Transfers Out (Note 5)- (972,227) (408,328) - - - (1,380,555)
Total Other Financing Sources (Uses)1,380,555 345,173 (187,728) 375,239 - - 1,913,239
Net Change in Fund Balances 92,708 (4,489) (33,593) - 7 949 55,582
Fund Balances - Beginning - 4,489 33,593 - 1,669 248 39,999
Fund Balances - Ending 92,708$ -$ -$ -$ 1,676$ 1,197$ 95,581$
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, 2020
City of Auburn: 2020 Annual Comprehensive Financial Report Fund Financial Statements & Schedules
134
City of Auburn: 2020 Annual Comprehensive Financial Report Fund Financial Statements & Schedules
135
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.
City of Auburn: 2020 Annual Comprehensive Financial Report Fund Financial Statements & Schedules
136
Municipal Nonmajor
Park Local Capital Project
Construction Revitalization Funds
ASSETS:
Cash and Cash Equivalents 903,764$ 362,110$ 1,265,874$
Total Assets 903,764 362,110 1,265,874
LIABILITIES AND FUND BALANCES:
Liabilities:
Current Payables 10,429 7,024 17,453
Total Liabilities 10,429 7,024 17,453
Fund Balances:
Restricted 893,335 - 893,335
Assigned - 355,086 355,086
Total Fund Balances 893,335 355,086 1,248,421
Total Liabilities and Fund Balances 903,764$ 362,110$ 1,265,874$
City of Auburn, Washington
COMBINING BALANCE SHEET
CAPITAL PROJECT FUNDS
December 31, 2020
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Municipal Nonmajor
Park Local Capital Project
Construction Revitalization Funds
REVENUES:
Taxes:
Property 243,356$ -$ 243,356$
Intergovernmental 150,000 - 150,000
Investment Earnings 132 1,448 1,580
Miscellaneous 60,978 - 60,978
Total Revenues 454,466 1,448 455,914
EXPENDITURES:
General Government - 1,051 1,051
Capital Outlay 1,237,046 25,050 1,262,096
Total Expenditures 1,237,046 26,101 1,263,147
Excess (Deficiency) of Revenues
Over (Under) Expenditures (782,580) (24,653) (807,233)
OTHER FINANCING SOURCES (USES):
Transfers In (Note 5)1,010,499 - 1,010,499
Total Other Financing Sources (Uses)1,010,499 - 1,010,499
Net Change in Fund Balances 227,919 (24,653) 203,266
Fund Balances - Beginning 665,416 379,739 1,045,155
Fund Balances - Ending 893,335$ 355,086$ 1,248,421$
City of Auburn, Washington
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
CAPITAL PROJECT FUNDS
For the Year Ended December 31, 2020
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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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Cemetery
Endowed
Care
ASSETS:
Cash and Cash Equivalents
Non-Expendable Trust 2,022,262$
Total Assets 2,022,262
LIABILITIES AND FUND BALANCES:
FUND BALANCES:
Nonspendable 1,925,183
Assigned 97,079
Total Fund Balances 2,022,262
Total Liabilities and Fund Balances 2,022,262$
City of Auburn, Washington
BALANCE SHEET
PERMANENT FUND
December 31, 2020
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141
Cemetery
Endowed
Care
REVENUES:
Increase to Endowment from Lot Sales 63,119$
Investment Earnings 25,497
Total Revenues 88,616
EXPENDITURES:
Excess (Deficiency) of Revenues
Over (Under) Expenditures 88,616
OTHER FINANCING SOURCES (USES):
Transfers Out (Note 5)(55,400)
Total Other Financing Sources (Uses)(55,400)
Net Change in Fund Balance 33,216
Fund Balance - Beginning 1,989,046
Fund Balance - Ending 2,022,262$
For the Year Ended December 31, 2020
City of Auburn, Washington
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
PERMANENT FUND
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City of Auburn: 2020 Annual Comprehensive Financial Report Fund Financial Statements & Schedules
143
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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Total
Nonmajor
Enterprise
Airport Cemetery Funds
ASSETS:
Current Assets:
Cash and Cash Equivalents 1,111,711$ 1,134,237$ 2,245,948$
Restricted Cash:
Customer Deposits 123,693 - 123,693
Customer Accounts 9,291 - 9,291
Due From Other Governmental Units 521,490 - 521,490
Inventories 8,832 9,115 17,947
Total Current Assets 1,775,017 1,143,352 2,918,369
Noncurrent Assets:
Capital Assets:
Land 3,673,295 342,836 4,016,131
Buildings and Equipments 3,079,113 1,006,754 4,085,867
Improvements Other Than Buildings 13,962,147 1,529,162 15,491,309
Construction in Progress 27,926 5,577 33,503
Less: Accumulated Depreciation (8,882,088) (1,630,384) (10,512,472)
Total Capital Assets (Net of A/D)11,860,393 1,253,945 13,114,338
Total Noncurrent Assets 11,860,393 1,253,945 13,114,338
Total Assets 13,635,410 2,397,297 16,032,707
DEFERRED OUTFLOWS OF RESOURCES:
Deferred Outflow Related to Pensions 9,115 49,975 59,090
9,115 49,975 59,090
LIABILITIES:
Current Liabilities:
Current Payables 57,326 62,780 120,106
Interfund Payables 425,000 - 425,000
Employee Leave Benefits - Current 6,211 16,015 22,226
Customer Deposits 123,693 - 123,693
Total Current Liabilities 612,230 78,795 691,025
Noncurrent Liabilities:
Employee Leave Benefits 2,247 5,794 8,041
Net Pension Liability (13,216) 11,009 (2,207)
Total Noncurrent Liabilities (10,969) 16,803 5,834
Total Liabilities 601,261 95,598 696,859
DEFERRED INFLOWS OF RESOURCES:
Deferred Inflow Related to Pensions (15,031) 41,048 26,017
NET POSITION:
Net Investment in Capital Assets 11,860,393 1,253,945 13,114,338
Unrestricted 1,197,902 1,056,681 2,254,583
Total Net Position 13,058,295$ 2,310,626$ 15,368,921$
City of Auburn, Washington
COMBINING STATEMENT OF NET POSITION
NON-MAJOR ENTERPRISE FUNDS
December 31, 2020
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Total
Nonmajor
Enterprise
Airport Cemetery Funds
OPERATING REVENUES:
Charges for Services 476,117$ 1,542,097$ 2,018,214$
Other Operating Revenue 952,859 - 952,859
Total Operating Revenues 1,428,976 1,542,097 2,971,073
OPERATING EXPENSES:
Operations & Maintenance 773,504 832,768 1,606,272
Administration 119,641 356,513 476,154
Depreciation/Amortization 427,175 23,891 451,066
Other Operating Expenses 2,137 20,689 22,826
Total Operating Expenses 1,322,457 1,233,861 2,556,318
Operating Income (Loss)106,519 308,236 414,755
NON-OPERATING REVENUE (EXPENSE):
Interest Revenue 7,167 4,275 11,442
Other Non-Operating Revenues 2,986,991 100 2,987,091
Gain (Loss) on Sale of Capital Assets - 2,199 2,199
Interest Revenue (Expense)(34) - (34)
Other Non-Operating Expenses (47,400) - (47,400)
Total Non-Operating Revenue (Expense)2,946,724 6,574 2,953,298
Income (Loss) Before Contributions & Transfers 3,053,243 314,810 3,368,053
Transfers In (Note 5)220,386 97,900 318,286
Transfers Out (Note 5)(220,386) (42,500) (262,886)
Change in Net Position 3,053,243 370,210 3,423,453
Net Position, January 1 10,005,052 1,940,416 11,945,468
Net Position, December 31 13,058,295$ 2,310,626$ 15,368,921$
City of Auburn, Washington
COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION
NON-MAJOR ENTERPRISE FUNDS
For the Year Ended December 31, 2020
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Page 1 of 2
Total
Non Major
Enterprise
Airport Cemetery Funds
CASH FLOWS FROM OPERATING ACTIVITIES:
Cash Received From Users 964,586$ 1,542,097$ 2,506,683$
Cash Paid to Suppliers for Goods & Services (625,963) (483,572) (1,109,535)
Cash Paid for Taxes (2,137) (20,689) (22,826)
Cash Paid to Employees (320,070) (740,628) (1,060,698)
Other Non-Operating Revenue 14,593 2,299 16,892
Net Cash Provided (Used) By Operating Activities 31,009 299,507 330,516
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:
Interfund Loan Payable 413,373 - 413,373
Operating Grant Received 2,972,398 - 2,972,398
Transfers from Other Funds 220,386 97,900 318,286
Operating Transfers Out (220,386) (42,500) (262,886)
Net Cash Provided (Used) by Non-Capital Financing Activities 3,385,771 55,400 3,441,171
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES:
Proceeds from Sale of Equipment - 1,851 1,851
Purchase of Capital Assets (3,346,580) (349,672) (3,696,252)
Capital Grant - - -
Interest Payment on Debt (34) - (34)
Net Cash Provided (Used) for Capital and Related Financing Activities (3,346,614) (347,821) (3,694,435)
CASH FLOW FROM INVESTING ACTIVITIES:
Interest Received 7,167 4,275 11,442
Net Cash Provided (Used) in Investing Activities 7,167 4,275 11,442
Net Increase (Decrease) in Cash and Cash Equivalents 77,333 11,361 88,694
Cash and Cash Equivalents - Beginning of Year 1,158,071 1,122,876 2,280,947
Cash and Cash Equivalents - End of Year 1,235,404$ 1,134,237$ 2,369,641$
CASH AT END OF YEAR CONSISTS OF:
Cash and Cash Equivalents 1,111,711 1,134,237 2,245,948
Restricted Cash - Customer Deposits 123,693 - 123,693
Total Cash 1,235,404$ 1,134,237$ 2,369,641$
City of Auburn, Washington
COMBINING STATEMENT OF CASH FLOWS
NON-MAJOR ENTERPRISE FUNDS
For the Fiscal Year Ended December 31, 2020
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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)106,519$ 308,236$ 414,755$
ADJUSTMENTS TO RECONCILE OPERATING INCOME TO
NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES:
Depreciation 427,175 23,891 451,066
Other Non-Operating Revenue 14,593 2,299 16,892
Asset (Increases) Decreases:
Accounts Receivable (471,463) - (471,463)
Inventory 25,442 (1,783) 23,659
Liability Increases (Decreases):
Accounts & Vouchers Payable (53,961) 13,334 (40,627)
Deposits Payable 7,073 - 7,073
Wages & Benefits Payable (24,369) (53,211) (77,580)
Compensated Absences Payable - 6,741 6,741
Total Adjustments (75,510) (8,729) (84,239)
Net Cash Provided (Used) by Operating Activities 31,009$ 299,507$ 330,516$
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, 2020
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149
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.
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Workers Comp Information Equipment
Insurance Self Insurance Facilities Services Rental Total
ASSETS:
Current Assets:
Cash and Cash Equivalents 1,824,832$ 3,410,772$ 1,283,781$ 4,026,232$ 6,994,589$ 17,540,206$
Customer Accounts - - 89,546 31,547 - 121,093
Due From Other Governmental Units - - 11,667 27,829 133,728 173,224
Inventories - - - - 315,176 315,176
Total Current Assets 1,824,832 3,410,772 1,384,994 4,085,608 7,443,493 18,149,699
Noncurrent Assets:
Capital Assets:
Buildings and Equipment - - - 9,259,598 19,233,235 28,492,833
Improvements Other than Buildings - - - 263,039 188,225 451,264
Construction in Progress - - - - 34,727 34,727
Less: Accumulated Depreciation - - - (7,969,419) (11,892,920) (19,862,339)
Total Capital Assets (Net of A/D)- - - 1,553,218 7,563,267 9,116,485
Total Noncurrent Assets - - - 1,553,218 7,563,267 9,116,485
Total Assets 1,824,832 3,410,772 1,384,994 5,638,826 15,006,760 27,266,184
DEFERRED OUTFLOWS OF RESOURCES:
Deferred Outflow Related to Pensions - 7,349 79,978 184,262 70,931 342,520
LIABILITIES:
Current Liabilities:
Current Payables 35,217 38,647 250,969 482,112 206,584 1,013,529
Claims Payable (Incurred but not reported)- 932,000 - - - 932,000
Employee Leave Benefits - Current - 4,200 109,309 105,525 31,086 250,120
Total Current Liabilities 35,217 974,847 360,278 587,637 237,670 2,195,649
Noncurrent Liabilities
Employee Leave Benefits - 1,520 39,543 38,175 11,245 90,483
Net Pension Liability - 1,087 5,054 (123,310) 987,455 870,286
Total Noncurrent Liabilities - 2,607 44,597 (85,135) 998,700 960,769
Total Liabilities 35,217 977,454 404,875 502,502 1,236,370 3,156,418
DEFERRED INFLOWS OF RESOURCES:
Deferred Inflow Related to Pensions - 14,428 55,366 154,631 112,760 337,185
NET POSITION:
Net Investment in Capital Assets - - - 1,553,218 7,563,267 9,116,485
Restricted For:
Unrestricted 1,789,615 2,426,239 1,004,731 3,612,737 6,165,294 14,998,616
Total Net Position 1,789,615$ 2,426,239$ 1,004,731$ 5,165,955$ 13,728,561$ 24,115,101$
City of Auburn, Washington
COMBINING STATEMENT OF NET POSITION
INTERNAL SERVICE FUNDS
December 31, 2020
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Workers Comp Information Equipment
Insurance Self Insurance Facilities Services Rental Total
OPERATING REVENUES:
Charges for Services -$ 1,022,229$ 3,115,706$ 5,873,192$ 3,692,936$ 13,704,063$
Other Operating Revenue - - 140,244 122,719 - 262,963
Total Operating Revenues - 1,022,229 3,255,950 5,995,911 3,692,936 13,967,026
OPERATING EXPENSES:
Operations & Maintenance - 368,569 2,799,748 5,512,538 1,658,920 10,339,775
Administration 135,096 107,800 - - 809,013 1,051,909
Depreciation/Amortization - - - 379,334 1,372,284 1,751,618
Total Operating Expenses 135,096 476,369 2,799,748 5,891,872 3,840,217 13,143,302
Operating Income (Loss)(135,096) 545,860 456,202 104,039 (147,281) 823,724
NON-OPERATING REVENUE (EXPENSE):
Interest Revenue 2,757 10,918 5,943 15,731 28,296 63,645
Other Non-Operating Revenues - - 11,982 10,101 241,832 263,915
Gain (Loss) on Sale of Capital Assets - - - - 1,147 1,147
Interest Expense - - - - (257) (257)
Total Non-Operating Revenue (Expense)2,757 10,918 17,925 25,832 271,018 328,450
Income (Loss) Before Contributions (132,339) 556,778 474,127 129,871 123,737 1,152,174
Transfers In (Note 5)- - 41,832 115,163 - 156,995
Transfers Out (Note 5)- - (679,176) - - (679,176)
Change in Net Position (132,339) 556,778 (163,217) 245,034 123,737 629,993
Net Position, January 1 1,921,954 1,869,461 1,167,948 4,920,921 13,604,824 23,485,108
Total Net Position - Ending 1,789,615$ 2,426,239$ 1,004,731$ 5,165,955$ 13,728,561$ 24,115,101$
City of Auburn, Washington
COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION
INTERNAL SERVICE FUNDS
For the Year Ended December 31, 2020
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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 -$ 1,022,229$ 3,248,458$ 5,938,824$ 3,559,208$ 13,768,719$
Cash Paid to Suppliers for Goods & Services (110,451) (326,367) (1,730,831) (2,789,277) (1,735,733) (6,692,659)
Cash Paid to Employees - (107,800) (1,171,124) (2,930,663) (1,051,526) (5,261,113)
Other Cash Received - - - 10,101 241,832 251,933
Net Cash Provided (Used) By Operating Activities (110,451) 588,062 346,503 228,985 1,013,781 2,066,880
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:
Operating Grant Received - - 11,982 - - 11,982
Transfers In - - 41,832 115,163 - 156,995
Transfers Out - - (679,176) - - (679,176)
Net Cash Provided (Used) by Non-Capital Financing Activities - - (625,362) 115,163 - (510,199)
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES:
Proceeds from Sale of Equipment - - - - 59,130 59,130
Purchase of Capital Assets - - - (742,322) (1,629,843) (2,372,165)
Interest Payment on Debt - - - - (257) (257)
Net Cash Provided (Used) for Capital and Related Financing Activities - - - (742,322) (1,570,970) (2,313,292)
CASH FLOW FROM INVESTING ACTIVITIES:
Interest Received 2,757 10,918 5,943 15,731 28,296 63,645
Net Cash Provided (Used) in Investing Activities 2,757 10,918 5,943 15,731 28,296 63,645
Net Increase (Decrease) in Cash and Cash Equivalents (107,694) 598,980 (272,916) (382,443) (528,893) (692,966)
Cash and Cash Equivalents - Beginning of Year 1,932,526 2,811,792 1,556,697 4,408,675 7,523,482 18,233,172
Cash and Cash Equivalents - End of Year 1,824,832$ 3,410,772$ 1,283,781$ 4,026,232$ 6,994,589$ 17,540,206$
CASH AT END OF YEAR CONSISTS OF:
Cash and Cash Equivalents 1,824,832 3,410,772 1,283,781 4,026,232 6,994,589 17,540,206
Total Cash 1,824,832$ 3,410,772$ 1,283,781$ 4,026,232$ 6,994,589$ 17,540,206$
City of Auburn, Washington
COMBINING STATEMENT OF CASH FLOWS
INTERNAL SERVICE FUNDS
For the Fiscal Year Ended December 31, 2020
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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)(135,096)$ 545,860$ 456,202$ 104,039$ (147,281)$ 823,724$
ADJUSTMENTS TO RECONCILE OPERATING INCOME TO
NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES:
Depreciation - - - 379,334 1,372,284 1,751,618
Other Non-Operating Revenues - - - - 241,832 241,832
Asset (Increases) Decreases:
Accounts Receivable - - (7,492) (46,986) (133,728) (188,206)
Inventory - - - - (16,572) (16,572)
Liability Increases (Decreases):
Accounts & Vouchers Payable 24,645 36,482 (75,086) 46,497 (234,027) (201,489)
Wages & Benefits Payable - - (88,393) (236,433) (76,491) (401,317)
Compensated Absences Payable - 5,720 61,272 (17,466) 7,764 57,290
Total Adjustments 24,645 42,202 (109,699) 124,946 1,161,062 1,243,156
Net Cash Provided (Used) by Operating Activities (110,451)$ 588,062$ 346,503$ 228,985$ 1,013,781$ 2,066,880$
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, 2020
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City of Auburn: 2020 Annual Comprehensive Financial Report Statistical Section
155
City of Auburn
STATISTICAL SECTION
December 31, 2020
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 and 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 ...................................................................................... 177
City of Auburn: 2020 Annual Comprehensive Financial Report Statistical Section
156
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Governmental activities:
Net Investment in Capital Assets 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$ 372,441,433$
Restricted 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 32,842,097
Unrestricted 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 67,845,872
Total governmental activities net position 400,422,165 411,308,460 408,642,054 416,383,399 421,493,212 436,774,978 446,026,906 447,588,227 466,638,817 473,129,402
Business-type activities:
Net Investment in Capital Assets 166,289,542 173,709,864 165,619,867 169,098,916 187,604,782 195,490,061 205,677,614 208,136,620 212,172,136 208,850,752
Restricted 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 11,471,309
Unrestricted 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 63,474,681
Total business-type activities net position 200,967,498 208,868,303 215,339,672 220,938,606 225,343,784 239,398,173 249,162,078 259,149,926 271,101,966 283,796,742
Primary government:
Net Investment in Capital Assets 507,230,654 528,609,158 511,815,660 517,179,421 548,699,024 562,618,955 579,046,520 583,345,601 585,059,372 581,292,185
Restricted 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 44,313,406
Unrestricted 75,774,064 73,684,431 80,306,568 89,622,646 73,902,752 83,698,512 84,431,253 91,466,037 116,768,289 131,320,553
Total primary government net position 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$ 756,926,144$
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: 2020 Annual Comprehensive Financial Report Statistical Section
157
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Expenses
Governmental activities:
General government 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$ 12,332,380$
Public safety 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 37,951,994
Transportation 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 17,781,630
Physical environment 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 3,981,592
Culture and recreation 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 11,681,611
Economic environment 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 5,308,106
Health and human services 619,172 633,175 510,285 622,374 925,299 573,115 674,270 787,535 619,247 671,257
Interest on long-term debt 1,685,055 2,336,960 3,795,024 3,615,211 1,986,853 1,709,647 1,555,803 1,502,236 1,466,217 650,215
Total governmental activities expenses 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 90,358,785
Business-type activities:
Water 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 13,253,694
Sewer 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 26,004,990
Storm drainage 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 8,780,867
Solid waste 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 15,620,963
Golf course 1,903,836 1,912,174 1,933,597 - - - - - - -
Non-major business-type activities 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 2,603,752
Total business-type activities expenses 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 66,264,266
Total primary government expenses 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$ 156,623,051$
Program revenues
Governmental activities:
Charges for services
General Government 1,010,911$ 897,521$ 893,326$ 1,160,198$ 1,243,263$ 939,184$ 1,241,905$ 1,462,867$ 3,758,197$ 3,584,821$
Public Safety 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 2,146,428
Transportation 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 2,103,258
Physical Environment 103,590 36,766 398,564 276,632 384,485 260,555 431,580 611,342 503,798 671,543
Culture and Recreation 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 2,191,540
Economic Environment 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 1,790,286
Health and human services 7,528 - - - - - - - - -
Total charges for services 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 12,487,875
Operating grants and contributions 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 6,904,118
Capital grants and contributions 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 9,455,065
Total governmental activities program revenues 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 28,847,058
Business-type activities:
Charges for services 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 68,966,638
Operating grants and contributions 116,735 97,052 90,361 111,025 106,286 106,286 106,286 106,286 106,286 106,286
Capital grants and contributions 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 6,518,995
Total business-type activities program revenues 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 75,591,919
Total primary government program revenues 92,107,602 87,369,963 80,854,059 84,184,575 104,189,208 104,796,261 99,967,536 97,345,227 103,586,756 104,438,977
Net (expense)/revenue
Governmental activities (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) (61,511,727)
Business-type activities 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 9,327,653
Total primary government net expense (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)$ (52,184,074)$
General revenues and other changes in net position
Governmental activities:
Taxes:
Property taxes 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$ 22,721,452$
Retail sales and use tax 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 21,900,597
Interfund utility taxes 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 4,543,436
Utility taxes 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 8,866,275
Excise taxes 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 4,580,114
Other taxes 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 3,846,314
Investment earnings 224,593 178,618 121,687 105,117 118,399 332,520 787,786 1,657,481 2,134,741 1,027,312
Miscellaneous 775,969 547,391 (4,625,627) 178,482 194,600 157,874 204,306 428,580 258,502 252,441
Transfers (483,107) (513,428) (218,230) 5,294,793 (462,955) 424,173 454,436 414,975 394,287 264,371
Total governmental activities 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 68,002,312
Business-type activities:
Investment earnings 101,694 82,903 68,400 51,261 70,560 196,595 479,132 989,564 1,387,405 364,027
Miscellaneous 2,584,004 1,781,676 763,717 2,700,233 1,881,835 1,085,275 444,110 602,528 1,218,645 3,267,467
Transfers 483,107 513,428 218,230 (5,294,793) 462,955 (424,173) (454,436) (414,975) (394,287) (264,371)
Total business-type activities: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 3,367,123
Total primary government 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$ 71,369,435$
Change in net position Before Change in Accounting Principle
Governmental activities 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 6,490,585
Business-type activities 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 12,694,776
Total primary government 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$ 19,185,361$
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 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 6,490,585
Business-type activities 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 12,694,776
Total primary government 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$ 19,185,361$
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: 2020 Annual Comprehensive Financial Report Statistical Section
158
2011 (1)2012 2013 2014 2015 2016 2017 2018 2019 2020
General Fund
Unreserved -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
Nonspendable - 370,400 127 127 127 - 30,453 38,179 36,097 47,085
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 11,257,547
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 30,634,592
Total General Fund 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 41,939,224
All other governmental funds
Reserved - - - - - - - - - -
Unreserved, Reported In:- - - -
Special Revenue Funds - - - - - - - - - -
Capital Projects Funds - - - - - - - - - -
Permanent Funds - - - - - - - - - -
Total Unreserved - - - - - -
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 1,925,183
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 30,916,914
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 3,910,112
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 1,906,717
Unassigned - - - - - - - - - -
Total All Other Governmental Funds 20,490,104$ 18,811,057$ 23,239,404$ 26,195,628$ 27,884,781$ 33,393,225$ 34,298,859$ 35,908,652$ 39,323,122$ 38,658,926$
(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: 2020 Annual Comprehensive Financial Report Statistical Section
159
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Revenues
Taxes 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$ 62,638,993$
Licenses and permits 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 2,086,579
Intergovernmental 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 14,734,337
Charges for services 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 8,670,078
Fines and forfeits 1,940,326 1,592,957 1,441,603 1,258,408 938,775 905,921 882,254 920,187 914,240 635,209
Special assessments 32,972 39,115 40,772 472,800 7,494 4,111 3,835 2,210 2,807 712
Investment earnings 237,056 200,826 144,151 135,709 117,942 279,058 672,713 1,308,888 1,767,742 1,005,175
Miscellaneous 2,322,580 871,191 621,673 1,691,274 1,890,419 1,854,450 1,966,333 1,600,279 2,406,291 774,011
Total revenues 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 90,545,094
Expenditures
General government 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 11,951,230
Public safety 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 36,790,348
Transportation 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 10,102,948
Physical environment 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 4,339,008
Economic environment 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 5,587,597
Health and human services 616,717 616,583 631,997 626,681 925,299 573,115 674,270 787,535 619,247 821,362
Culture and recreation 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 10,571,483
Capital outlay (1)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 3,743,808
Debt service:
Principal 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 1,738,594
Interest / other 1,761,334 2,245,858 2,709,768 2,892,281 1,801,109 1,632,786 1,590,525 1,537,504 1,478,169 822,678
Total expenditures 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 86,469,056
Excess of revenues
over (under) expenditures (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 4,076,038
Other financing sources (uses)
Transfers in 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 12,216,778
Transfers out (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) (11,430,226)
Capital leases - - - - - - - - - -
Insurance recoveries 154,200 291,210 192,898 136,585 153,041 83,737 134,003 288,518 177,154 189,322
Issuance of debt - - 3,044,491 240,366 - 3,128,732 - - - -
Issuance of refunding bond - - - - - 38,198 - - - 19,480,000
Debt Premium - - - - - - - - - 3,989,749
Payment to escrow agent - refunded bond - - - - - (3,005,000) - - - (23,469,749)
Sales of capital assets 1,331,092 800 2,593,405 17,458 21,952 - 2,700 - - -
Total other financing sources (uses)2,653,885 (69,971) 6,155,969 700,730 607,197 184,321 24,242 654,975 1,008,650 975,874
Net change in fund balances (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$ 5,051,912$
Debt service as a percentage of noncapital 5.44%6.64%8.71%10.68%5.50%5.14%4.66%4.38%3.72%3.36%
expenditures
(1)Capital outlay reported in governmental funds for 2020 are $3,743,808 plus $6,395,590 which is reported for each functional
activity with the other funds results in total capital outlay of $10,139,398 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: 2020 Annual Comprehensive Financial Report Statistical Section
160
Fiscal Sales Interfund
Year Property & Use Utility Utility Excise Other Total
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
2020 22,688,696 21,900,597 4,543,436 8,866,275 4,580,114 59,875 62,638,993
Change
2011-2020 54.5%35.1%54.1%-2.0%146.3%2.0%39.8%
Source: City of Auburn, Finance Department
TAX REVENUES BY SOURCE, GOVERNMENT FUNDS
Last Ten Fiscal Years
SCHEDULE 5
City of Auburn, Washington
City of Auburn: 2020 Annual Comprehensive Financial Report Statistical Section
161
State Total Total
Fiscal Property Personal Land and Assessed Direct
Year and Other Property Building Value Rate
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
2020 165,647 832,886 11,381,503 12,380,036 1.82
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
City of Auburn: 2020 Annual Comprehensive Financial Report Statistical Section
162
Page 1 of 2
Item 2011 2012 2013 2014
Assessed and estimated actual values (1)
Estimated and actual value (in thousands)7,564,507$ 7,225,550$ 6,968,719$ 7,422,169$
Assessed value (in thousands)7,564,507 7,225,550 6,968,719 7,422,169
Ratio of assessed to actual 100%100%100%100%
Property tax rates (1)
Direct regular and special
General fund 1.93458$ 2.07527$ 2.10000$ 2.16739$
Debt service funds - - - -
Subtotal 1.93458 2.07527 2.10000 2.16739
Overlapping regular and special (1)
Auburn School District 5.99562$ 6.14004$ 6.62190$ 6.50262$
King County 1.33816 1.41588 1.54051 1.51605
State of Washington 2.27990 2.42266 2.56720 2.47044
Port of Seattle 0.22366 0.22982 0.23324 0.21533
Sound Transit - - - -
Emergency Medical Services 0.30000 0.30000 0.30000 0.33500
Hospital District 0.55753 0.50000 0.50000 0.50000
King County Library District 0.56621 0.56992 0.56743 0.56175
Valley Regional Fire Authority 1.17977 1.18925 1.20479 1.20294
King County Flood Zone 0.10976 0.11616 0.13210 0.15369
King County Ferry District 0.00360 0.00372 0.00378 0.00349
Subtotal 12.55421 12.88745 13.67095 13.46131
Total direct and overlapping 14.48879$ 14.96272$ 15.77095$ 15.62870$
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
City of Auburn: 2020 Annual Comprehensive Financial Report Statistical Section
163
Page 2 of 2
2015 2016 2017 2018 2019 2020
8,366,653$ 8,967,119$ 9,721,877$ 10,699,721$ 11,489,516$ 12,380,036$
8,366,653 8,967,119 9,721,877 10,699,721 11,489,516 12,380,036
100%100%100%100%100%100%
2.08085$ 2.04719$ 2.19668$ 2.03239$ 1.92435$ 1.81928$
- - - - - -
2.08085 2.04719 2.19668 2.03239 1.92435 1.81928
6.14079$ 5.82831$ 6.74299$ 6.29971$ 3.81351$ 5.19948$
1.34522 1.48027 1.38294 1.32735 1.21906 1.23953
2.28514 2.16898 2.03205 2.91820 2.62922 3.02799
0.18885 0.16954 0.15334 0.13518 0.12266 0.11944
- - 0.25000 0.22745 0.20700 0.19937
0.30217 0.28235 0.26305 0.23940 0.21762 0.26500
0.50000 0.50000 0.50089 0.45689 0.41673 0.40069
0.50276 0.47714 0.45118 0.41190 0.37441 0.36040
1.18043 1.13495 1.06821 0.98189 0.92352 0.86897
0.13860 0.12980 0.11740 0.10708 0.09660 0.09199
- - - - - -
12.58396 12.17134 12.96205 13.10505 10.02033 11.77286
14.66481$ 14.21853$ 15.15873$ 15.13744$ 11.94468$ 13.59214$
$0.00
$2.00
$4.00
$6.00
$8.00
$10.00
$12.00
$14.00
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020Dollars (Rate Per Thousand)Figure 7b: Property Tax Rates
Last Ten Fiscal Years
Sound Transit
Hospital District
King County Ferry District
King County Flood Zone
Valley Regional Fire Authority
King County Library District
Emergency Medical Services
Port of Seattle
State of Washington
King County
Auburn School District
City of Auburn: 2020 Annual Comprehensive Financial Report Statistical Section
164
Total Tax Collections
Fiscal Levy for in Subsequent Current Year
Year Fiscal Year Amount % of Levy Years Amount % of Levy Levy Balance
King County:
2011 13,069,177 12,846,996$ 98.3%226,574 13,073,569$ 100.0%(4,392)$
2012 13,389,558 13,167,731 98.3%226,177 13,393,908 100.0%(4,351)
2013 12,884,878 12,673,712 98.4%222,207 12,895,919 100.1%(11,041)
2014 14,182,244 13,970,560 98.5%189,292 14,159,852 99.8%22,392
2015 15,387,654 15,226,048 98.9%174,168 15,400,216 100.1%(12,562)
2016 16,034,024 15,897,626 99.1%190,200 16,087,826 100.3%(53,802)
2017 18,648,780 18,418,844 98.8%214,579 18,633,423 99.9%15,357
2018 19,097,681 18,872,111 98.8%189,539 19,061,650 99.8%36,031
2019 19,543,217 19,298,789 98.7%174,463 19,473,252 99.6%69,966
2020 20,049,770 19,775,977 98.6%- 19,775,977 98.6%273,793
331,390$
Pierce County:
2011 1,425,381 1,401,537$ 98.3%23,844 1,425,381$ 100.0%0$
2012 1,495,390 1,478,223 98.9%17,166 1,495,390 100.0%(0)
2013 1,484,398 1,471,129 99.1%13,269 1,484,398 100.0%0
2014 1,595,675 1,586,010 99.4%9,665 1,595,675 100.0%0
2015 1,746,163 1,738,447 99.6%7,716 1,746,163 100.0%(0)
2016 1,867,636 1,857,614 99.5%10,022 1,867,636 100.0%(0)
2017 2,237,907 2,229,137 99.6%8,770 2,237,907 100.0%(0)
2018 2,320,452 2,312,378 99.7%8,073 2,320,452 100.0%0
2019 2,389,591 2,382,374 99.7%6,084 2,388,458 100.0%1,133
2020 2,434,921 2,421,941 99.5%2,421,941 99.5%12,980
14,113$
Total current levy balance 345,503$
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
City of Auburn: 2020 Annual Comprehensive Financial Report 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 591,067,268$ 1 4.77%469,398,671$ 1 6.21%
EProperty Tax Inc.159,422,900 2 1.29%33,672,100 8 0.45%
Safeway 157,013,478 3 1.27%86,736,849 3 1.15%
PPF Industrial 134,798,100 4 1.09%N/A
Principal Life Insurance Co.122,155,100 5 0.99%N/A
Glimcher Supermall Venture 118,277,400 6 0.96%109,755,583 2 1.45%
Prologis 108,292,500 7 0.87%N/A
KW Lakeland LLC 73,288,800 8 0.59%N/A
Puget Sound Energy 54,372,178 9 1.29%64,805,982 5 0.86%
TIAA CREF 51,475,700 10 0.42%N/A
Universal Health N/A 65,886,195 4 0.87%
Belara Communities LLC N/A 51,114,300 7 0.68%
Muckleshoot Indian Tribe N/A 55,123,700 6 0.73%
UPS Supply Chain Solutions N/A 31,155,543 9 0.41%
Wal-Mart Store N/A 30,032,484 10 0.40%
TOTALS 1,570,163,424$ 13.53%997,681,407$ 13.19%
Source: King County and Pierce County Departments of Assessments
Total assessed value for 2020:12,380,035,738$
Total assessed value for 2011:7,564,507,343$
2020 2011
City of Auburn, Washington
SCHEDULE 9a
PRINCIPAL TAXPAYERS-PROPERTY TAXES
Current Year and Ten 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
565,163$ Automotive 1 3.0%414,344$ Retail Trade 1 3.3%
500,278 Retail Trade 2 2.7%268,656 Automotive 2 2.1%
428,039 Construction 3 2.3%267,158 Automotive 3 2.1%
427,162 Automotive 4 2.3%247,651 Automotive 4 1.9%
372,190 Retail Trade 5 2.0%242,912 Automotive 5 1.9%
346,777 Automotive 6 1.8%226,249 Automotive 6 1.8%
340,201 Construction 7 1.8%214,231 Retail Trade 7 1.7%
330,803 Retail Trade 8 1.8%213,084 Retail Trade 8 1.7%
297,040 Automotive 9 1.6%208,392 Manufacturing 9 1.6%
291,462 Construction 10 1.5%203,015 Automotive 10 1.6%
3,899,115$ 20.7%2,505,692$ 19.7%
Source: Washington State Department of Revenue
(1) It is illegal to disclose specific taxpayer sales tax information, so the above information is being provided
without identification.
2020 2011
City of Auburn, Washington
SCHEDULE 9b
PRINCIPAL TAXPAYERS-SALES TAXES
Current Year and Ten Years Ago
City of Auburn: 2020 Annual Comprehensive Financial Report Statistical Section
166
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
RETAIL TRADE SECTOR
Automotive/gas 2,785$ 3,019$ 3,136$ 3,309$ 3,707$ 3,659$ 3,972$ 4,122$ 4,069$ 3,827$
Furniture 218 226 235 254 254 185 197 210 222 209
Electronics & appliances 127 145 174 237 295 221 211 229 277 300
Building materials 383 425 447 502 590 579 580 576 652 751
Food stores 331 341 335 353 368 397 369 388 406 451
Health & personal care 148 149 174 188 221 284 369 420 426 348
Apparel 754 772 889 1,009 1,080 1,136 1,119 1,170 1,236 873
General merchandise 968 967 974 955 988 1,018 993 221 818 878
Misc. retail trade 851 897 990 1,182 1,193 1,032 1,033 1,827 1,399 1,689
Subtotal - Retail Trade 6,566 6,943 7,354 7,989 8,695 8,512 8,843 9,163 9,506 9,327
SERVICE SECTOR
Information 481$ 396$ 446$ 487$ 526$ 630$ 662$ 638$ 668$ 685$
Finance & insurance 66 53 91 88 95 111 122 140 138 178
Real estate, rental, leasing 304 326 279 315 334 359 368 368 434 369
Professional, scientific, technical 175 173 184 216 195 238 239 254 344 394
Administrative, supply & remediation services 295 334 336 350 383 329 276 424 524 652
Educational 53 54 50 49 60 50 56 47 46 40
Healthcare & social services 41 115 33 66 82 92 75 93 93 111
Arts & entertainment 149 153 149 158 208 156 110 119 120 50
Accommodation & food service 839 921 979 1,067 1,159 1,218 1,276 1,435 1,469 1,205
Other services 482 530 507 526 603 788 728 711 609 537
Subtotal - Services 2,882 3,056 3,054 3,322 3,646 3,970 3,912 4,229 4,445 4,220
OTHER SECTORS
Construction 1,296$ 1,221$ 1,943$ 1,754$ 2,297$ 2,292$ 2,632$ 2,310$ 2,193$ 3,068$
Manufacturing 583 405 624 1,163 862 761 678 754 821 390
Transportation 77 55 46 71 66 99 89 120 89 197
Wholesaling 1,260 1,297 1,279 1,205 1,229 1,265 1,363 1,469 1,496 1,346
Other business 224 61 64 120 72 67 65 154 265 308
Subtotal - Other 3,439 3,038 3,956 4,312 4,525 4,485 4,827 4,807 4,863 5,309
GRAND TOTAL 12,887$ 13,037$ 14,364$ 15,623$ 16,866$ 16,967$ 17,582$ 18,198$ 18,814$ 18,856$
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%1.40%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%10.00%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
City of Auburn: 2020 Annual Comprehensive Financial Report 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
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
2020 41,060,378 3,099,918 - 37,460,053 4,351,217 85,971,566 3.10%1,049.20
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
City of Auburn: 2020 Annual Comprehensive Financial Report Statistical Section
168
Parks and Utility Total
Councilmanic Excess Levy Open Spaces Purpose Capacity
December 31, 2020 - Total Assessed Value:
13,211,886,719$
2.5% of Assessed Value -$ 330,297,168$ 330,297,168$ 330,297,168$ 990,891,504$
1.5% of Assessed Value 198,178,301 (198,178,301) - - -
Statutory Debt Limit 198,178,301 132,118,867 330,297,168 330,297,168 990,891,504
Debt Outstanding 40,356,449 - - - 40,356,449
Net Debt Outstanding 40,356,449 - - - 40,356,449
Remaining Debt Capacity 157,821,852$ 132,118,867$ 330,297,168$ 330,297,168$ 950,535,055$
General Capacity Special Purpose Capacity
City of Auburn, Washington
SCHEDULE 12
COMPUTATION OF LEGAL DEBT MARGIN
As of December 31, 2020
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Debt Limit 539,989$ 518,188$ 546,602$ 617,872$ 661,996$ 716,628$ 791,936$ 854,513$ 923,770$ 990,892$
Total net debt
applicable to limit 65,364 63,815 64,047 61,892 59,409 57,152 54,208 52,097 46,115 40,356
Legal debt margin 474,625$ 454,372$ 482,554$ 555,980$ 602,588$ 659,476$ 737,728$ 802,416$ 877,655$ 950,535$
Total net debt
applicable to the limit
as a percentage of debt limit 12.10%12.32%11.72%10.02%8.97%7.98%6.85%6.10%4.99%4.07%
City of Auburn, Washington
SCHEDULE 13
LEGAL DEBT MARGIN RATIOS
Last Ten Fiscal Years
(Expressed in Thousands)
City of Auburn: 2020 Annual Comprehensive Financial Report Statistical Section
169
Net Debt Percent Bonded Amount
Outstanding Applicable (3)Applicable
Net direct debt:
Net direct debt - City of Auburn (1)44,160,296$
Estimated net overlapping debt: (2)
King County 663,463,000$ 1.71%11,345,217$
Port of Seattle 311,175,000 1.71%5,321,093
School District No. 210 450,475,000 57.20%257,671,700
School District No. 408 488,985,000 81.00%396,077,850
School District No. 415 215,816,000 1.58%3,409,893
Rural Library District 56,875,000 2.88%1,638,000
Valley Regional Fire Authority 8,610,000 89.45%7,701,645
Pierce County 133,125,000 0.97%1,293,975
Total estimated net overlapping debt 684,459,373
Total direct and overlapping debt 728,619,669$
Sources:
(1) Includes both bonded and non bonded debt related to government activities. From Sch. 8 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, 2020
City of Auburn, Washington
SCHEDULE 14
City of Auburn: 2020 Annual Comprehensive Financial Report 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
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
2020 81,940 12,380,036 41,060,378 - 41,060 0.33%501
Notes:
(1) From Schedule 7
(2) General Obligation Debt related to government activities, from Schedule 10.
(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
City of Auburn: 2020 Annual Comprehensive Financial Report Statistical Section
171
Direct(2)Debt Service Requirements
Gross (1)Operating Net Revenue Times
Year Revenue Expense Available Principal Interest Total (3)Coverage
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
2020 51,149,771 38,530,032 12,619,739 1,442,376 853,564 2,295,940 5.50
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
City of Auburn: 2020 Annual Comprehensive Financial Report Statistical Section
172
Item 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
School enrollment (1)14,363 14,596 14,971 15,277 15,663 15,945 16,525 16,949 17,300 16,702
Rate of unemployment (2)8.7%7.5%6.0%5.4%4.9%4.4%4.4%4.2%3.5%9.2%
Population (3)70,705 71,240 73,235 74,630 75,545 77,060 78,960 80,615 81,720 81,940
Personal income (thousands of dollars) (4)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$ 2,769,162$
Per capita personal income (4)26,894$ 26,277$ 26,179$ 26,807$ 26,918$ 27,405$ 27,940$ 29,344$ 31,229$ 33,795$
Housing units (5)
One unit 14,775 14,957 15,393 15,804 16,042 16,167 16,373 16,616 16,674 16,687
Two or more 10,592 10,631 10,841 10,841 10,847 10,854 11,110 11,417 12,008 12,008
Mobile home or special 2,635 2,618 2,630 2,631 2,637 2,630 2,675 2,659 2,663 2,671
Total housing units 28,002 28,206 28,864 29,276 29,526 29,651 30,158 30,692 31,345 31,366
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
City of Auburn: 2020 Annual Comprehensive Financial Report Statistical Section
173
Percentage Percentage
of Total City of Total City
Employer Product/service Employees Rank Employment Employees Rank Employment
The Boeing Company Aerospace 3,790 1 9.7%5,179 1 15.8%
Muckleshoot Tribal Enterprises Gaming 3,493 2 8.9%2,500 2 7.6%
The Outlet Collection*Retail 3,000 3 7.6%1,700 4 5.2%
Auburn School District Education 2,950 4 7.5%1,800 3 5.5%
Green River College Education 1,980 5 5.0%1,067 5 3.3%
Multicare Auburn Medical Center**Hospital 1,778 6 4.5%805 6 2.5%
Safeway Distribution Center Distribution 908 7 2.3%650 8 2.0%
Zones, Inc.Technology Reseller 413 8 1.1%500 10 1.5%
Skills, Inc Manufacturing 290 9 0.7%0.0%
LMI Aerospace Manufacturing 210 10 0.5%
Federal Aviation Administration Federal Government - -0.0%500 10 1.5%
General Services Administration Federal Government - -0.0%500 10 1.5%
Emerald Downs Racetrack Gaming 0.0%678 7 2.1%
Social Security Administration Gov't / Public Offices 0.0%600 9 1.8%
Totals 18,812 47.9%16,479 50.2%
2019 - City of Auburn, Economic Development
2010 - City of Auburn ACFR
* Previously the Supermall.
**Previously Auburn Regional Medical Center.
2020 2011
City of Auburn, Washington
SCHEDULE 18
MAJOR EMPLOYERS
Current Year and Ten Years Ago
City of Auburn: 2020 Annual Comprehensive Financial Report Statistical Section
174
Department 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Mayor 10 7 7 3 3 3 3 3 3 3
Administration (1)0 0 0 8 8 10 11 12 8 8
Human Resources 7 8 8 8 8 9 8 8 8 8
Finance 22 22 23 23 22 22 22 22 24 24
Municipal Court (2)19 0 0 0 0 0 0 0 0 0
Legal 13 13 13 14 14 14 15 15 16 16
Community Development 24 28 29 25 26 26 26 25 32 32
Police 118 122 125 126 129 131 138 140 140 140
Public Works 43 43 48 49 50 53 54 55 55 55
Parks, Arts and Recreation (3)36 36 36 45 45 47 47 47 47 47
Street 19 19 19 19 19 19 20 20 21 21
Water 22 22 22 24 23 23 23 23 23 23
Sewer 12 11 10 10 10 10 10 10 10 10
Storm Drainage 10 10 10 10 10 10 10 12 12 12
Solid Waste 2 2 2 2 2 2 2 2 0 0
Airport (4)0 0 0 0 0 0 0 3 3 3
Cemetery 7 7 5 5 5 6 6 6 6 6
Golf Course (3)8 8 8 0 0 0 0 0 0 0
Facilities 10 9 9 9 10 10 10 10 11 11
Multimedia (5)0 0 0 4 4 4 4 4 4 4
Innovation & Technology 14 18 18 15 16 16 17 17 18 18
Equipment Rental 6 7 10 12 12 12 12 12 12 12
TOTAL 401 391 402 411 416 427 438 446 453 452
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.
City of Auburn: 2020 Annual Comprehensive Financial Report Statistical Section
175
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Planning*
Commercial permits 324 305 394 389 386 410 320 322 338 270
Commercial construction value ($1,000's)46,260$ 69,246$ 138,248$ 60,732$ 66,223$ 151,220$ 74,840$ 72,623$ 157,026$ 93,920$
Residential permits 442 665 576 463 340 426 345 210 195 202
Residential construction value ($1,000's)47,681$ 100,050$ 97,151$ 84,539$ 63,370$ 73,679$ 52,750$ 25,790$ 18,832$ 32,630$
Police
Crimes:
Arson 29 27 14 32 - - 19 20 22 19
Aggravated Assault 148 110 145 156 186 179 198 158 171 208
Burglary 757 983 651 810 851 727 722 615 547 587
DUI 214 171 138 126 188 158 194 223 180 186
Homicide 2 6 5 1 8 6 3 1 5 6
Narcotics 396 383 279 458 511 458 742 912 797 770
Rape 23 23 26 31 31 36 49 42 45 32
Robbery 107 110 109 104 91 98 117 115 125 125
Theft 2,435 2,415 2,583 3,192 2,728 2,235 2,169 2,945 2,223 2,922
Theft - motor vehicle 600 588 678 630 996 1,159 969 973 924 997
Traffic:
Non-criminal 5,400 4,922 5,378 6,520 5,489 5,706 11,483 10,946 7,262 3,421
Parking 3,383 1,946 2,052 5,238 3,737 3,822 3,777 3,477 4,425 2,990
Parks and Recreation
Athletic teams 429 388 382 358 321 328 306 312 315 15
Recreation activities 3,462 3,833 3,568 3,557 3,511 2,435 3,389 3,498 3,520 1,169
Golf course rounds 45,484 45,704 47,480 47,697 52,718 48,803 47,001 50,720 51,860 51,684
Senior center visits 41,802 40,704 36,991 40,715 38,485 36,636 35,454 32,464 77,378 35,417
Cultural activities 127 146 180 202 204 203 214 211 229 86
Museum audience served 14,119 15,397 14,163 13,968 13,535 14,380 13,570 15,153 14,638 3,463
Cemetery placements 273 259 226 250 237 281 264 263 253 273
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: 2020 Annual Comprehensive Financial Report Statistical Section
176
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
General City
Total area (square miles)30 30 30 30 30 30 30 30 30 30
Public Works
Miles of streets 285 249 245 244 254 238 238 247 248 245
Number of streetlights (1)5,581 6,101 6,110 6,211 6,362 6,552 6,581 6,738 3,429 3,526
Number of traffic signals 89 93 94 94 95 95 95 95 94 95
Utilities
Number of services 13,334 13,863 14,106 14,573 14,787 14,872 14,746 14,769 14,781 14,909
Miles of water lines (1)304 314 315 316 320 321 323 347 283 287
Miles of sanitary sewer lines (1)213 219 220 220 223 224 225 227 206 209
Miles of storm lines (1)247 252 263 282 294 319 337 362 234 240
Number of fire hydrants (1)3,277 3,308 3,329 3,559 3,580 3,577 3,595 3,664 3,014 3,115
Public Safety
Number of police stations 2 2 2 2 2 3 3 3 3 4
Parks and Recreation
Total park acreage (2)602 630 635 972 977 988.7 986 986 986 986
Number of softball/baseball fields 18 17 17 18 18 18 18 18 18 18
Number of soccer/football fields 3 3 4 4 4 4 4 4 4 4
Number of playgrounds 35 35 36 28 31 31 30 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.
City of Auburn: 2020 Annual Comprehensive Financial Report Statistical Section
177
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Water Customers by Class
Single Family Residential 10,704 11,224 11,476 11,822 11,973 12,054 12,010 12,010 12,028 12,078
Multifamily 991 989 986 1,000 1,003 1,002 1,009 1,012 1,010 1,023
Commercial 1,095 1,098 1,094 1,146 1,190 1,186 1,158 1,159 1,163 1,168
Mfr./Industrial 38 37 37 38 38 37 2 2 2 2
Schools 37 36 37 37 37 38 37 37 37 37
City Accounts 28 26 28 30 30 31 31 30 30 31
Irrigation 434 446 441 493 509 517 492 512 505 564
Total Retail Water Customers 13,327 13,856 14,099 14,566 14,780 14,865 14,739 14,762 14,775 14,903
Wholesale Water Customers 8 7 7 7 7 7 7 7 6 6
Sewer Customers by Class
Single Family Residential 11,183 11,522 11,982 12,631 12,890 13,091 13,124 13,176 13,234 13,319
Non-single Family Residential 2,616 2,653 2,659 2,713 2,728 2,725 2,724 2,728 2,731 2,749
Total Sewer Customers 13,799 14,175 14,641 15,344 15,618 15,816 15,848 15,904 15,965 16,068
Storm Customers by Class
Single Family Residential 14,846 15,168 15,618 16,013 16,222 16,200 16,566 16,610 16,665 16,723
Non-single Family Residential 1,653 1,661 1,640 1,670 1,679 1,913 1,671 1,691 1,696 1,702
Total Storm Customers 16,499 16,829 17,258 17,683 17,901 18,113 18,237 18,301 18,361 18,425
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: 2020 Annual Comprehensive Financial Report Statistical Section
178