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HomeMy WebLinkAboutQ1 2014 Financial Report.pdf AGENDA BILL APPROVAL FORM Agenda Subject: Quarter 1 - 2014 Financial Report Date: May 14, 2014 Department: Finance Attachments: Quarterly Financial Report Budget Impact: $0 Administrative Recommendation: For discussion only. Background Summary: The purpose of the monthly financial report is to summarize for the City Council the general state of Citywide financial affairs and to highlight significant items or trends that the City Council should be aware of. The following provides a high level summary of the City’s financial performance. Further detail can be found within the attached financial report. The March status report is based on financial data available as of April 25, 2014 for the period ending March 31, 2014. Sales tax information represents business activity that occurred in January 2014. General Fund: The General Fund is the City’s largest fund and is used to account for the majority of City resources and services except those required by statute or to be accounted for in another fund. Through March 2014, General Fund revenues totaled $11.4 million and exceed year-to-date budget of $9.9 million due primarily to increased revenues from sales tax collections, property tax collections, and building permit revenues. Retail sales tax collections through the first quarter of 2014 exceed budget by $432,000 and property tax collections to date exceed budget by $268,000. General Fund expenditures through March totaled $12.8 million and compares to $12.5 million for the same period last year. Effective January 1, 2014, an accounting change occurred whereas the Golf Course fund is now reported under the General Fund. After recognizing this change, year-to-date expenditures are flat compared to the same period last year. Through March 2014, payments to SCORE have decreased by $675,000 compared to the same period the year prior. The majority of this reduction in expenditures is due to reduced monthly payments for incarceration services (current year monthly payments are based upon prior year City inmate counts). Overall departmental spending is $872,000 – or 6.4% under budget due to staff vacancies, underspend of contingency funds, and continued vigilance in monitoring general spending. Year-to-date, 1,684 pet licenses have been sold resulting in $38,615 in revenue. For the same period in 2013, 1,256 licenses were sold resulting in $34,510 in revenue. Enterprise Funds: The City’s seven enterprise funds account for operations with revenues primarily provided from user fees, charges or contracts for services. At the end of the first quarter, the Water fund’s net operating income increased to $148,000 and compares to income of $8,000 the previous year. The Sewer fund ended the quarter with $58,000 operating loss compared to an operating loss of $305,000 the previous year; the Sewer-Metro Utility ended the quarter with an operating loss of $58,000 compared to an operating loss of $180,000 the previous year; and the Stormwater Utility ended the quarter with an operating income of $370,000 and compares to operating income of $330,000 the previous year. 1 Agenda Subject: Quarter 1, 2014 Financial Report Date: 5/14/2014 The Cemetery ended the first quarter with net operating income of $42,000 compared to operating income of $31,000 the previous year. Internal Service Funds: Internal Service Funds provide services to other City departments and include functions such as Insurance, Worker’s Compensation, Facilities, Innovation and Technology, and Equipment Rental. All funds have sufficient revenues to cover year-to-date expenditures. Investment Portfolio: The City’s total cash and investments at the end of March 2014 was $113.9 million, and compares to $113.0 million at the end of 2013. Reviewed by Council & Committees: Reviewed by Departments & Divisions: Arts Commission COUNCIL COMMITTEES: Building M&O Airport Finance Cemetery Mayor Hearing Examiner Municipal Serv. Finance Parks Human Services Planning & CD Fire Planning Park Board Public Works Legal Police Planning Comm. Other Public Works Human Resources Information Services Action: Committee Approval: Yes No Council Approval: Yes No Call for Public Hearing ___/___/____ Referred to _________________________________ Until ____/___/____ Tabled ______________________________________ Until ___/___/____ Councilmember: Wales Staff: Coleman Meeting Date: May 19, 2014 Item Number: 2 Quarterly Financial Report Through Q1 2014 (1) Through December 31, 2013, Golf Course revenues and expenditures were reported under Fund 437. Effective January 1, 2014, Golf Course revenues and expenditures are now reported in the General Fund (above). Therefore, when comparing 2014 General Fund actuals to prior year, it is important to recognize this change. General Fund 2013 Summary of Sources and Uses Annual Budget YTD Budget YTD Actual YTD Actual Amount Operating Revenues Property Tax 15,699,417 621,500 889,756 623,011 268,256 43.2 % Sales Tax 13,048,552 3,101,700 3,533,696 3,037,855 431,996 13.9 % Sales Tax - Annexation Credit 1,404,590 331,000 467,105 403,739 136,105 41.1 % Criminal Justice Sales Tax 1,231,185 304,600 411,139 378,229 106,539 35.0 % Brokered Natural Gas Tax 303,008 111,300 92,221 98,079 (19,079)(17.1)% City Utilities Tax 3,203,673 778,600 830,310 860,063 51,710 6.6 % Admissions Tax 365,427 65,100 59,685 61,539 (5,415)(8.3)% Electric Tax 3,373,905 836,400 871,122 786,368 34,722 4.2 % Natural Gas Tax 1,213,919 304,600 309,852 244,173 5,252 1.7 % Cable TV Franchise Fee 816,000 202,900 220,649 212,145 17,749 0.0 % Cable TV Franchise Fee - Capital 62,310 15,700 15,720 15,821 20 0.0 % Telephone Tax 2,042,737 474,800 532,622 395,980 57,822 12.2 % Garbage Tax (external)96,261 24,000 26,414 24,046 2,414 10.1 % Leasehold Excise Tax 50,754 8,500 9,270 10,350 770 9.1 % Gambling Excise Tax 250,237 68,200 73,243 73,914 5,043 7.4 % Taxes sub-total 43,161,975 7,248,900 8,342,805 7,225,314 1,093,905 15.1 % Business License Fees 203,015 80,600 72,322 82,365 (8,279)(10.3)% Building Permits 1,169,160 213,000 374,921 760,505 161,921 76.0 % Other Licenses & Permits 528,072 107,000 138,601 159,658 31,601 29.5 % Intergovernmental (Grants, etc.)5,087,759 1,085,821 1,136,229 1,153,549 50,408 4.6 % Charges for Services: General Government Services 94,783 26,600 28,101 31,460 1,501 5.6 % Public Safety 17,351 5,100 8,203 9,000 3,103 60.8 % Development Services Fees 738,881 165,000 241,389 291,244 76,389 46.3 % Culture and Recreation - (1)2,047,549 342,400 363,225 234,417 20,825 6.1 % Fines and Forfeits 1,562,575 415,900 384,831 356,041 (31,069)(7.5)% Fees/Charges/Fines sub-total 11,449,145 2,441,421 2,747,820 3,078,238 306,400 12.6 % Interests and Other Earnings 42,230 9,400 8,391 11,917 (1,009)(10.7)% Rents, Leases and Concessions - (1)543,150 92,700 168,001 67,391 75,301 81.2 % Contributions and Donations 30,000 4,900 8,773 5,615 3,873 79.0 % Other Miscellaneous - (1)113,200 21,400 31,831 17,066 10,431 48.7 % Transfers In 92,000 91,000 91,000 119,548 0 0.0 % Insurance Recoveries - Capital & Operating 25,000 6,300 11,532 30,442 5,232 83.0 % Other Revenues sub-total 845,580 225,700 319,528 251,978 93,828 41.6 % Total Operating Revenues 55,456,700 9,916,021 11,410,153 10,555,530 1,494,132 15.1 % Operating Expenditures Council & Mayor 718,926 178,076 220,084 249,469 (42,008)(23.6)% Administrative Services 828,034 207,008 154,511 0 52,498 25.4 % Community & Human Services 1,379,335 356,300 194,025 251,737 162,275 45.5 % Municipal Court & Probation 1,870,966 64,892 43,390 92,903 21,502 33.1 % Human Resources 1,557,163 365,700 306,801 337,728 58,899 16.1 % Finance 1,369,895 320,700 276,766 280,589 43,934 13.7 % City Attorney 1,880,945 421,700 408,856 411,756 12,844 3.0 % Community Development 4,069,107 998,901 1,036,784 981,792 (37,883)(3.8)% Jail - SCORE 5,786,100 1,056,000 974,474 1,649,017 81,526 7.7 % Police 21,238,447 5,199,300 5,001,630 4,629,326 197,670 3.8 % Public Works 2,653,441 618,100 724,228 616,818 (106,128)(17.2)% Parks, Arts & Recreation - (1)9,512,253 2,378,100 2,170,790 1,862,608 207,310 8.7 % Streets 3,295,760 678,200 769,106 628,728 (90,906)(13.4)% Non-Departmental 3,268,607 878,952 568,037 494,447 310,915 35.4 % Total Operating Expenditures 59,428,978 13,721,929 12,849,482 12,486,917 872,447 6.4 % 2014 2014 YTD Budget vs. Actual Favorable (Unfavorable) Percentage 3 Quarterly Financial Report Through Q1-2014 Overview This financial overview reflects the City’s overall financial position for the fiscal period ending March 31, 2014 and represents financial data available as of April 25, 2014. The budgeted revenues and operating expenditures are primarily based on the collection/disbursement average for the same period of the two years prior. Through the first quarter of 2014, General Fund revenues totaled $11.4 million and compares to budget of $9.9 million and previous year-to-date collections of $10.6 million. Some highlights this quarter include: - Sales Tax revenue totaled $3.5 million and was $432,000 above previous 2 years’ average budget and is in line with the 2014 budget expectations. - Property Tax revenue totaled $890,000 and compares to budget of $623,000 based on previous years’ budget and is in line with 2014 budget expectations due to the levy correction. Fees/Charges/Fines totaled $2.7 million and exceeds budget by $306,000 due to stronger than budgeted revenues from development activity. General Fund expenditures for the first quarter totaled $12.8 million and compares to budget of $13.7 million. Due to an accounting change effective January 1, 2014 all revenues and expenditures related to the Auburn Golf Course are now reported under the General Fund. Therefore it is important to recognize this shift when comparing 2014 performance to prior year performance. After adjusting for the Q1-2013 Golf Course expenditures of $330,000, the year to date General Fund expenditures are flat compared to prior year. $0.0 $2.0 $4.0 $6.0 $8.0 $10.0 $12.0 $14.0 $16.0 Revenues Expenditures Mi l l i o n s General Fund Revenues vs. Expenditures 2014 Actual 2014 Budget 4 Quarterly Financial Report Through Q1-2014 Revenues The combined total of property tax, sales/use tax, utility tax, gambling, and admissions tax provide approximately 80% of all resources supporting general governmental activities. The following section provides additional information on these sources. Property Tax collections to date totaled $890,000 and exceeds budget by $268,000, and compares to collections of $622,000 for the same period the prior year. The majority of property tax revenues are collected during the months of April and October, coinciding with the due date for the County property tax billings. $0.0 $2.0 $4.0 $6.0 $8.0 $10.0 $12.0 $14.0 $16.0 $18.0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Mi l l i o n s Property Taxes 2014 budget 2014 actual to date 2013 actual 5 Quarterly Financial Report Through Q1-2014 Sales tax distributions Citywide totaled $4.0 million of which $3.5 million was distributed to the General Fund, and $463,000 to the Local Street Fund (SOS) program.* * Per 2013-2014 budget, Local Street Fund (Fund 103) street repairs are funded from sales taxes on construction. Total transferred in through Q1-2014 is $463,259. The graphic above presents sales taxes under the current policy. The following table breaks out the City’s base sales tax, excluding Criminal Justice, Annexation Credit and Streamlined Sales Tax Mitigation by major business sectors. $0.0 $2.0 $4.0 $6.0 $8.0 $10.0 $12.0 $14.0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Mi l l i o n s Sales & Use Tax (Net of Revenue from Construction) 2014 budget 2014 actual to date 2013 actual 2013 2014 Component Group Actual Actual Amount Construction 400,915 463,259 62,344 15.6 % Manufacturing 166,306 349,574 183,268 110.2 % Transportation & Warehousing 7,457 11,165 3,708 49.7 % Wholesale Trade 278,925 282,129 3,204 1.1 % Automotive 710,566 765,196 54,630 7.7 % Retail Trade 1,108,747 1,287,328 178,581 16.1 % Services 779,477 834,434 54,957 7.1 % Miscellaneous 24,428 38,599 14,171 58.0 % YTD Total 3,476,821 4,031,684 554,863 16.0 % Change from 2013 March-2014 Comparison of Sales Tax Collections by SIC Group Percentage 6 Quarterly Financial Report Through Q1-2014 As shown on the prior page, sales tax revenues collected through the first quarter of 2014 exceed prior year collections by $555,000. The areas showing the largest amount of increase in revenues compared to 2013 are in the manufacturing and retail trade categories. Total sales tax revenue on construction, which is transferred to the Local Street Fund (Fund 103) for local street repair and maintenance, totals $463,000 year-to-date and exceeds budget by $127,000 reflecting increased commercial and residential construction activity throughout the City. $0.0 $0.2 $0.4 $0.6 $0.8 $1.0 $1.2 $1.4 $1.6 $1.8 $2.0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Mi l l i o n s Sales Tax on Construction Transfer 2014 budget 2014 actual to date 2013 actual 7 Quarterly Financial Report Through Q1-2014 Utility Taxes consists of City interfund utility taxes (Water, Sewer, Storm and Solid Waste) and external utility taxes (Electric, Natural Gas, Telephone and Solid Waste). Utility taxes collected through the first quarter of 2014 totaled $2.6 million and compares to $2.3 million collected in the same period last year. As shown in the table below, utility tax revenue year-to-date exceed expectation by $152,000 or 6.3%. The increase in Telephone tax revenues is primarily due to timing of payments. $0.0 $2.0 $4.0 $6.0 $8.0 $10.0 $12.0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Mi l l i o n s Utility Tax 2014 budget 2014 actual to date 2013 actual 2013 2014 2014 Month Actual Budget Actual Amount Amount City Interfund Utility Taxes 860,063 778,600 830,310 (29,752)(3.5)%51,710 6.6 % Electric 786,368 836,400 871,122 84,754 10.8 %34,722 4.2 % Natural Gas 244,173 304,600 309,852 65,679 26.9 %5,252 1.7 % Telephone 395,980 474,800 532,622 136,641 34.5 %57,822 12.2 % Solid Waste (external)24,046 24,000 26,414 2,367 9.8 %2,414 10.1 % YTD Total 2,310,631 2,418,400 2,570,320 259,689 11.2 %151,920 6.3 % March-2014 Utility Tax by Type 2014 vs. 2013 Actual 2014 vs. Budget Percentage Percentage 8 Quarterly Financial Report Through Q1-2014 Cable TV Franchise Fees, which are collected quarterly, totaled $221,000 and exceed budget by $18,000 or 8.7%. Licenses and Permits include business licenses, building permits, plumbing, electric and other licenses and permit fees. Building permit fees and business licenses make up 80% of the annual budgeted revenue in this category. Total building permit revenues collected through March totaled $375,000 and compare to budget of $213,000. Building permits issued through March total 209, and compares to 218 during the same period last year. Major projects contributing to revenues this quarter include the Student Life Building at Green River Community College, various projects at Boeing, as well as numerous housing developments – most notably Edgeview, Lakeland East, and Lakeland Villas. $0 $100 $200 $300 $400 $500 $600 $700 $800 $900 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Th o u s a n d s Cable TV Franchise Fee 2014 budget 2014 actual to date 2013 actual 9 Quarterly Financial Report Through Q1-2014 Note: The spike seen in February 2013 (above) includes revenues for the Auburn High School Reconstruction and Modernization project. Business License revenues collected through March totaled $72,000, and compares to budget of $81,000. The graphic on the following page reflects the timing of payments by business owners, where the majority of business license payments are collected during the first two months of the year and the last month of the year. $0.0 $0.2 $0.4 $0.6 $0.8 $1.0 $1.2 $1.4 $1.6 $1.8 $2.0 $2.2 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Mi l l i o n s Building Permits 2014 budget 2014 actual to date 2013 actual 10 Quarterly Financial Report Through Q1-2014 Intergovernmental includes Grants (Direct & Indirect Federal, State and Local), state shared revenues and compact revenue from the Muckleshoot Indian Tribe (MIT). Collections to date total $1.1 million and are $50,000, or 4.6% higher than budget. State shared revenue includes $496,027 in Streamlined Sales Tax Mitigation payments. $0 $20 $40 $60 $80 $100 $120 $140 $160 $180 $200 $220 $240 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Th o u s a n d s Business Licenses 2014 budget 2014 actual to date 2013 actual 2013 2014 2014 Revenue Actual Budget Actual Amount Amount Federal Grants 0 5,200 0 0 N/A %(5,200)(100.0)% State Grants 27,620 36,000 8,269 (19,352)(70.1)%(27,731)(77.0)% Interlocal Grants 2,000 200 0 (2,000)(100.0)%(200)(100.0)% State Shared Revenue 933,760 915,800 977,176 43,415 4.6 %61,376 6.7 % Muckleshoot Casino Emerg.182,594 127,400 127,433 (55,161)(30.2)%33 0.0 % Intergovernmental Service 7,574 1,221 23,351 15,778 208.3 %22,131 1813.2 % YE Total 1,153,549 1,085,821 1,136,229 (17,320)(1.5)%50,408 4.6 % March-2014 Intergovernmental 2014 vs. 2013 Actual 2014 vs. Budget % Change % Change 11 Quarterly Financial Report Through Q1-2014 Charges for Services consists of general governmental services, public safety, development service fees and cultural & recreation fees. Overall, charges for services exceed budget by $102,000 and prior year collections by $75,000. Development service fees and culture and recreation fees make up over 90% of the revenue within this category. Development service fee collections, which primarily consist of plan check fees, exceed budget by $76,000 year to date. Total plan check fees collected this quarter totaled $183,000 and includes fees related to several commercial and housing projects including the Student Life Building at Green River Community College, various projects at Boeing, as well as plans for the Edgeview and Vista Pointe housing developments. Culture and recreation revenues are $21,000 higher than budget; reflecting increased activity from recreational classes and City special events. The year over year increase in Culture and Recreation revenues reflect the change in accounting; where Golf Course revenues and expenditures are now reported within the General Fund. 2013 2014 2014 Revenue Actual Budget Actual Amount Amount General Government 31,460 26,600 28,101 (3,359)(10.7)%1,501 5.6 % Public Safety 9,000 5,100 8,203 (797)(8.9)%3,103 60.8 % Development Services 291,244 165,000 241,389 (49,855)(17.1)%76,389 46.3 % Culture & Recreation 234,417 342,400 363,225 128,808 54.9 %20,825 6.1 % YTD Total 566,120 539,100 640,918 74,797 13.2 %101,818 18.9 % March-2014 Charges for Services by Type 2014 vs. 2013 Actual 2014 vs. Budget Percentage Percentage 12 Quarterly Financial Report Through Q1-2014 Note: The 2014 budget is considerably higher than 2013 actuals due to the accounting change effective January 1, 2014 where the Golf Course is now included in the General Fund. $0.0 $0.2 $0.4 $0.6 $0.8 $1.0 $1.2 $1.4 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Mil l i o n s Development Service Fees 2014 budget 2014 actual to date 2013 actual $0.0 $0.2 $0.4 $0.6 $0.8 $1.0 $1.2 $1.4 $1.6 $1.8 $2.0 $2.2 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Mi l l i o n s Culture & Recreation 2014 budget 2014 actual to date 2013 actual 13 Quarterly Financial Report Through Q1-2014 Fines & Penalties include traffic and parking infraction penalties, Redflex photo enforcement violations, criminal fines (including criminal traffic, criminal non traffic and criminal costs) as well as non court fines such as false alarm and shopping cart fines. Total revenue collected to date is $385,000 and compares $356,000 collected the same period last year. 2013 2014 2014 Month Actual Budget Actual Amount Amount Civil Penalties 3,360 3,200 4,341 981 29.2 %1,141 35.7 % Civil Infraction Penalties 115,484 187,800 127,636 12,152 10.5 %(60,164)(32.0)% Redflex Photo Enforcement 149,072 125,700 165,322 16,250 10.9 %39,622 31.5 % Parking Infractions 31,395 44,300 26,833 (4,562)(14.5)%(17,467)(39.4)% Criminal Traffic Misdemeanor 15,446 23,100 12,670 (2,776)(18.0)%(10,430)(45.2)% Criminal Non-Traffic Fines 15,630 22,500 12,087 (3,543)(22.7)%(10,413)(46.3)% Criminal Costs 6,407 3,000 12,473 6,066 94.7 %9,473 315.8 % Non-Court Fines & Penalties 19,246 6,300 23,468 4,222 21.9 %17,168 272.5 % YE Total 356,041 415,900 384,831 28,790 8.1 %(31,069)(7.5)% March-2014 Fines & Forfeits by Type 2014 vs. 2013 Actual 2014 vs. Budget Percentage Percentage $0.0 $0.2 $0.4 $0.6 $0.8 $1.0 $1.2 $1.4 $1.6 $1.8 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Mi l l i o n s Fines & Penalties 2014 budget 2014 actual to date 2013 actual 14 Quarterly Financial Report Through Q1-2014 Miscellaneous revenues primarily consist of income from facility rentals; other sources within this category include investment earnings, contributions & donations and other miscellaneous income. Revenues in this category totaled $217,000, and compares to budget of $128,000. Real Estate Excise Tax (REET) revenue is receipted into the Capital Improvement Projects Fund and is used for governmental capital projects. Total revenue collected through March was $447,000 and exceeds budget and prior year actuals by $195,000 and $82,000 respectively, reflecting local and regional improvement in the real estate market. $0 $100 $200 $300 $400 $500 $600 $700 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Th o u s a n d s Redflex Photo Enforcement 2014 budget 2014 actual to date 2013 actual 2013 2014 2014 Month Actual Budget Actual Amount Amount Interest & Investments 11,917 9,400 8,391 (3,525)(29.6)%(1,009)(10.7)% Rents & Leases 67,391 92,700 168,001 100,611 149.3 %75,301 81.2 % Contributions & Donations 5,615 4,900 8,773 3,158 56.2 %3,873 79.0 % Other Miscellaneous Revenue 17,066 21,400 31,831 14,765 86.5 %10,431 48.7 % YTD Total 101,988 128,400 216,997 115,008 112.8 %88,597 69.0 % Miscellaneous Revenues by Type March-2014 2014 vs. 2013 2014 vs. Budget Percentage Percentage 15 Quarterly Financial Report Through Q1-2014 2013 2014 2014 Month Actual Budget Actual Amount Amount Jan 113,615 61,300 119,765 6,150 5.4 %58,465 95.4 % Feb 107,485 92,200 208,206 100,721 93.7 %116,006 125.8 % Mar 143,198 98,000 118,578 (24,620)(17.2)%20,578 21.0 % Apr 124,445 69,100 May 162,750 89,400 Jun 177,380 95,800 Jul 267,976 147,100 Aug 200,627 112,200 Sep 183,507 103,600 Oct 261,388 260,600 Nov 287,776 138,600 Dec 202,388 132,100 YTD Total 364,298 251,500 446,549 82,251 22.6 %195,049 77.6 % 2014 vs. 2013 201 vs. Budget Percentage Real Estate Excise Tax Revenues March-2014 Percentage $0.0 $0.2 $0.4 $0.6 $0.8 $1.0 $1.2 $1.4 $1.6 $1.8 $2.0 $2.2 $2.4 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Mil l i o n s Real Estate Excise Tax 2014 budget 2014 actual to date 2013 actual 16 Quarterly Financial Report Through Q1-2014 Pet Licensing Year-to-date, 1,684 pet licenses have been sold resulting in $38,615 in revenue. For the same period in 2013, 1,256 licenses were sold resulting in $34,510 in revenue. 2014 Budget Goal: $240,000 or more Year-to-Date Revenue 2014 (through March) = $38,615 Year-to-Date Licenses 2014 (through March) = 1,684 Year-to-Date Licenses 2013 (through March) = 1,256 0 100 200 300 400 500 600 700 800 900 Ja n Fe b Ma r Ap r Ma y Ju n Ju l Au g Se p Oc t No v De c Nu m b e r o f L i c e n s e s I s s u e d Month Pet Licenses Issued By Month 2014 vs 2013 2014 Licenses Issued 2013 Licenses Issued $0 $2,000 $4,000 $6,000 $8,000 $10,000 $12,000 $14,000 Ja n Fe b Ma r Ap r Ma y Ju n Ju l Au g Se p Oc t No v De c Li c e n s e R e v e n u e Month Pet Licensing Revenue By Month 2014 2014 License Revenue 17 Quarterly Financial Report Through Q1-2014 Enterprise Funds The detailed Working Capital and Fund Balance statements for Enterprise and Internal Service funds can be found in the Appendix at the end of this report. At the end of the first quarter, the Water Utility’s net operating income increased from $8,000 in 2013 to $148,000 in 2014. 0 2,000 4,000 6,000 8,000 10,000 12,000 $0 $50,000 $100,000 $150,000 $200,000 $250,000 Ja n Fe b Ma r Ap r Ma y Ju n Ju l Au g Se p Oc t No v De c Nu m b e r o f L i c e n s e s I s s u e d Li c e n s e R e v e n u e Month Cumulative Pet Licensing Revenue & Licenses Issued 2014 vs 2013 2014 License Revenue (L) 2014 License Revenue (L) (Budget Goal: $240,000) 2014 Licenses Issued (R) 2013 Licenses Issued (R) $0 $200 $400 $600 $800 $1,000 $1,200 $1,400 $1,600 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Th o u s a n d s Water Revenues vs Water Sold 2014 vs 2013 2013 Water Sales ($) 2014 Water Sales ($) 2013 Water Sold (ccf) 2014 Water Sold (ccf) 18 Quarterly Financial Report Through Q1-2014 The Sewer Utility ended the quarter with a $58,000 net operating loss compared to $305,000 net loss for the same period in 2013. The Sewer-Metro Utility ended the period with an operating loss of $58,000 compared to an operating loss of $180,000 for the previous year. The Stormwater Utility ended the quarter with $370,000 in net operating income which compared to operating income of $330,000 for the same period last year. The Cemetery Fund ended the first quarter with an operating income of $42,000 compared to operating income of $31,000 for the same period last year. During the first quarter of 2014, the number of interments at the Cemetery totaled 61 (31 burials, 30 cremations) which compares to 58 (32 burials, 26 cremations) for the same period last year. $0 $20 $40 $60 $80 $100 $120 $140 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Th o u s a n d s Cemetery Operating Revenues & Expenditures By Month 2014 vs 2013 2014 Bud. Revenue 2014 Act. Revenue 2013 Act. Revenue 2014 Act. Expenses $0 $100 $200 $300 $400 $500 $600 $700 $800 $900 $1,000 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Th o u s a n d s Cumulative Cemetery Revenues & Expenditures 2014 vs 2013 2014 Bud. Revenue 2014 Act. Revenue 2013 Act. Revenue 2014 Act. Expenses 19 Quarterly Financial Report Through Q1-2014 Internal Service Funds Operating expenditures within the Insurance Fund represents the premium cost-pool that will be allocated monthly to other City funds over the course of 2014. As a result, this balance will gradually diminish each month throughout the year. No significant variances are reported in the Worker’s Compensation, Facilities, Innovation & Technology, or Equipment Rental Funds. All funds have sufficient revenues to cover year-to-date expenditures. Contact Information This report is prepared by the Finance Department. Additional financial information can also be viewed at our website: http://www.auburnwa.gov/. For any questions about this report please contact Shelley Coleman at scoleman@auburnwa.gov. 20 Investment Purchase Purchase Maturity Yield to Type Date Price Date Maturity State Investment Pool Various 99,419,243$ Various 0.11% KeyBank Money Market Various 9,188,248 Various 0.02% US Treasury 05/04/1990 57,750 05/15/2016 5.72% FFCB 4/11/2013 3,000,000 4/11/2016 0.43% FHLB 2/19/2014 2,047,200 11/19/2018 1.98% LAKUTL 9/25/2013 235,919 11/1/2017 1.90% Total Cash & Investments 113,948,360$ 0.155% Investment Mix % of Total State Investment Pool 87.2%Current 6-month treasury rate 0.08% KeyBank Money Market 8.1%Current State Pool rate 0.11% US Treasury 0.1%KeyBank Money Market 0.02%FFCB 2.6%Blended Auburn rate 0.15% FHLMC 1.8% LAKUTL 0.2% 100.0% City of Auburn Investment Portfolio Summary March 31, 2014 Summary 21 SALES TAX SUMMARY MARCH 2014 SALES TAX DISTRIBUTIONS (FOR JANUARY 2014 RETAIL ACTIVITY) 2013 Annual Total 2013 YTD 2014 YTD YTD 2013 Annual Total 2013 YTD 2014 YTD YTD NAICS CONSTRUCTION (Nov '12-Oct '13)(Nov '12 - Jan '13)(Nov '13 - Jan '14)% Diff NAICS AUTOMOTIVE (Nov '12-Oct '13)(Nov '12 - Jan '13)(Nov '13 - Jan '14)% Diff 236 Construction of Buildings 949,102 179,394 217,681 21.3%441 Motor Vehicle and Parts Dealer 2,899,545 651,573 698,372 7.2% 237 Heavy and Civil Construction 166,874 20,692 45,976 122.2%447 Gasoline Stations 236,015 58,993 66,822 13.3% 238 Specialty Trade Contractors 826,744 200,829 199,603 -0.6%TOTAL AUTOMOTIVE 3,135,559 710,566 765,193 7.7% TOTAL CONSTRUCTION 1,942,720 400,915 463,259 15.6%Overall Change from Previous Year 54,627 Overall Change from Previous Year 62,344 2013 Annual Total 2013 YTD 2014 YTD YTD2013 Annual Total 2013 YTD 2014 YTD YTD NAICS RETAIL TRADE (Nov '12-Oct '13)(Nov '12 - Jan '13)(Nov '13 - Jan '14)% Diff NAICS MANUFACTURING (Nov '12-Oct '13)(Nov '12 - Jan '13)(Nov '13 - Jan '14)% Diff 442 Furniture and Home Furnishings 235,036 60,232 64,377 6.9% 311 Food Manufacturing 1,836 339 1,303 284.8%443 Electronics and Appliances 173,552 45,534 109,048 139.5% 312 Beverage and Tobacco Products 7,670 2,016 2,072 2.7%444 Building Material and Garden 446,976 89,473 94,483 5.6% 313 Textile Mills 272 39 104 167.6%445 Food and Beverage Stores 335,409 79,820 85,363 6.9% 314 Textile Product Mills 3,435 784 950 21.1%446 Health and Personal Care Store 173,874 41,273 50,584 22.6% 315 Apparel Manufacturing 280 144 129 -10.2%448 Clothing and Accessories 889,410 248,545 283,391 14.0% 316 Leather and Allied Products 11 1 3 120.0%451 Sporting Goods, Hobby, Books 125,040 38,085 70,146 84.2% 321 Wood Product Manufacturing 72,780 22,151 20,433 -7.8%452 General Merchandise Stores 974,130 283,030 296,473 4.7% 322 Paper Manufacturing 3,442 965 1,628 68.7%453 Miscellaneous Store Retailers 548,688 133,917 142,520 6.4% 323 Printing and Related Support 26,277 5,317 9,294 74.8%454 Nonstore Retailers 316,455 88,838 90,942 2.4% 324 Petroleum and Coal Products 9,762 2,913 2,860 -1.8%TOTAL RETAIL TRADE 4,218,570 1,108,747 1,287,328 16.1% 325 Chemical Manufacturing 8,995 1,942 1,417 -27.0%Overall Change from Previous Year 178,581 326 Plastics and Rubber Products 9,566 2,628 1,899 -27.7% 327 Nonmetallic Mineral Products 20,455 4,006 3,882 -3.1% 331 Primary Metal Manufacturing 717 16 874 5352.5%2013 Annual Total 2013 YTD 2014 YTD YTD 332 Fabricated Metal Product Manuf 13,135 b 16,892 5,888 -65.1%NAICS SERVICES (Nov '12-Oct '13)(Nov '12 - Jan '13)(Nov '13 - Jan '14)% Diff 333 Machinery Manufacturing 25,232 3,270 6,599 101.8%51*Information 445,827 108,258 122,089 12.8% 334 Computer and Electronic Produc 13,545 2,623 8,156 211.0%52*Finance and Insurance 91,439 25,839 22,296 -13.7% 335 Electric Equipment, Appliances 1,251 229 193 -15.6%53*Real Estate, Rental, Leasing 278,919 73,598 86,678 17.8% 336 Transportation Equipment Man 350,172 89,188 265,827 198.1%541 Professional, Scientific, Tech 183,904 43,837 45,848 4.6% 337 Furniture and Related Products 24,852 4,627 3,738 -19.2%551 Company Management 76 1 26 4966.7% 339 Miscellaneous Manufacturing 30,699 6,218 12,324 98.2%56*Admin. Supp., Remed Svcs 336,269 78,591 95,100 21.0% TOTAL MANUFACTURING 624,385 166,306 349,574 110.2%611 Educational Services 50,183 12,537 11,754 -6.2% Overall Change from Previous Year 183,267 62*Health Care Social Assistance 32,608 22,250 6,212 -72.1% 71*Arts and Entertainment 148,530 70,090 81,349 16.1% 72*Accomodation and Food Svcs 979,254 229,565 242,296 5.5%2013 Annual Total 2013 YTD 2014 YTD YTD 81*Other Services 394,645 94,916 101,947 7.4% NAICS TRANSPORTATION AND WAREHOUSING (Nov '12-Oct '13)(Nov '12 - Jan '13)(Nov '13 - Jan '14)% Diff 92*Public Administration 112,629 19,994 18,839 -5.8% 481 Air Transportation 0 0 0 N/A TOTAL SERVICES 3,054,283 779,477 834,434 7.1% 482 Rail Transportation 9,552 5,877 1,555 -73.5%Overall Change from Previous Year 54,957 484 Truck Transportation -3,489 a -8,592 886 -110.3% 485 Transit and Ground Passengers 93 88 0 -100.0% 488 Transportation Support 27,757 5,205 7,130 37.0%2013 Annual Total 2013 YTD 2014 YTD YTD 491 Postal Service 863 248 256 3.1%NAICS MISCELLANEOUS (Nov '12-Oct '13)(Nov '12 - Jan '13)(Nov '13 - Jan '14)% Diff 492 Couriers and Messengers 1,272 240 249 3.8%000 Unknown 0 0 0 N/A 493 Warehousing and Storage 9,648 4,392 1,089 -75.2%111-115 Agriculture, Forestry, Fishing 4,385 1,263 796 -37.0% TOTAL TRANSPORTATION 45,696 7,457 11,165 49.7%211-221 Mining & Utilities 22,645 4,256 4,387 3.1% Overall Change from Previous Year 3,707 999 Unclassifiable Establishments 36,549 18,908 33,416 76.7% TOTAL SERVICES 63,580 24,428 38,599 58.0% Overall Change from Previous Year 14,171 2013 Annual Total 2013 YTD 2014 YTD YTD NAICS WHOLESALE TRADE (Nov '12-Oct '13)(Nov '12 - Jan '13)(Nov '13 - Jan '14)% Diff 423 Wholesale Trade, Durable Goods 1,111,249 240,325 240,348 0.0%GRAND TOTAL 14,364,200 3,476,821 4,031,681 424 Wholesale Trade, Nondurable 163,774 37,585 41,079 9.3%Overall Change from Previous Year 554,860 16.0% 425 Wholesale Electronic Markets 4,384 1,015 702 -30.8% TOTAL WHOLESALE 1,279,407 278,925 282,129 1.1% Overall Change from Previous Year 3,204 a. WA State Dept of Revenue audit adjustment to sales tax returns for period Jan 2013 (adjustment: -$11,382). b. WA State Dept of Revenue audit adjustment to sales tax returns for period May 2013 (adjustment - $30,493). 03/26/14 file:Monthly Sales Tax Report.xls Prepared by Auburn Finance Department 22 INNOVATION EQUIPMENT & TECHNOLOGY RENTAL OPERATING REVENUES Charges For Service 2,692,854 1,787,178 - 2,202,721 3,216,867 4,110 245,508 - 205,811 - - - Interfund Charges For Service - - - - - - - - - 842,465 1,186,299 717,734 Sewer Metro Service Revenue - - 3,655,012 - - - - - - - - - Rents, Leases, Concessions, & Other - - - - - 157,022 - - - 23,253 26,782 - TOTAL OPERATING REVENUES 2,692,854 1,787,178 3,655,012 2,202,721 3,216,867 161,132 245,508 - 205,811 865,718 1,213,081 717,734 OPERATING EXPENSES Salaries & Wages 622,250 414,651 - 556,045 103,132 5,818 91,755 - 22,088 131,648 358,799 140,540 Benefits 269,102 176,359 - 240,089 48,294 1,823 45,891 - 10,919 66,227 147,024 61,177 Supplies 53,336 12,405 - 9,559 2,563 112 18,639 - - 30,326 49,169 189,714 Other Service Charges 715,886 522,037 - 327,359 260,956 107,195 14,350 753,979 63,130 478,190 590,423 90,115 Intergovernmental Services - 1,447 - 282 - - - - - - - - Waste Management Payments - - - - 1,603,110 - - - - - - - Sewer Metro Services - - 3,712,563 - - - - - - - - - Interfund Operating Rentals & Supplies 276,007 241,442 - 316,076 44,925 - 18,599 - - 29,628 72,099 61,780 Other Expenses - - - - - - - - - - - - Depreciation & Amortization 608,533 477,146 - 382,931 4,705 100,421 13,962 - - - 125,493 188,286 TOTAL OPERATING EXPENSES 2,545,114 1,845,486 3,712,563 1,832,339 2,067,685 215,369 203,196 753,979 96,137 736,019 1,343,008 731,611 OPERATING INCOME (LOSS)147,740 (58,308) (57,551) 370,382 1,149,182 (54,238) 42,313 (753,979) 109,674 129,699 (129,927) (13,877) NON-OPERATING REVENUES & EXPENSES Interest Revenue 4,251 3,556 283 4,039 336 256 85 262 16 571 929 1,550 Contributions - - - - - (8,562) - - - - - - Other Non-Operating Revenue 3,707 148 - 1,972 240 (2,721) 1,654 - - - - 1,962 Gain (Loss) On Sale Of Fixed Assets - - - - - - - - - - - - Debt Service Interest - - - - - - - - - - - - Other Non-Operating Expense - - - - - - - - - - - - TOTAL NON-OPERATING REVENUES & EXPENSES 7,958 3,704 283 6,011 576 (11,028) 1,739 262 16 571 929 3,511 PLUS ITEMS NOT EFFECTING WORKING CAPITAL Depreciation 608,533 477,146 - 382,931 4,705 100,421 13,962 - - - 125,493 188,286 NET WORKING CAPITAL FROM OPERATIONS 764,231 422,542 (57,268) 759,323 1,154,463 35,156 58,014 (753,717) 109,690 130,269 (3,504) 177,920 Increase In Contributions - System Development 93,736 66,840 - 143,577 - - - - - - - - Increase In Contributions - Area Assessments - 3,282 - - - - - - - - - - Increase In Contributions - Other Governments - - - - - - - - - - - - Increase In Contributions - Other Funds - - - - - - - - - - - - Increase In Contributions - FAA - - - - - 8,562 - - - - - - Proceeds of Debt Activity 42,600 - - - - - - - - - - - Operating Transfers In - - - - - - - - - - - - Increase In Restricted Net Assets (1,777) 47,583 - - - (1,553) - - - - - - Decrease In Long-Term Receivables - - - - - - - - - - - - Increase In Deferred Credits - - - - - 9,884 - - - - - - TOTAL RESOURCES OTHER THAN OPERATIONS 134,559 117,705 - 143,577 - 16,894 - - - - - - Net Change In Restricted Net Assets 427 135 - 311 - (842) - - - 2,500 - - Increase In Fixed Assets - Salaries 34,095 30,215 - 59,119 - - - - - - - - Increase In Fixed Assets - Benefits 12,051 11,889 - 23,258 - - - - - - - - Increase In Fixed Assets - Site Improvements 6,923 - - - - - - - - - - - Increase In Fixed Assets - Equipment - - - - - - - - - - - 34,890 Increase In Fixed Assets - Construction 111,148 195,888 - 433,508 - 51,853 - - - - - - Operating Transfers Out 50,000 50,000 - 124,000 - - - - - - - 7,000 Debt Service Principal - - - - - - - - - - - - TOTAL USES OTHER THAN OPERATIONS 214,643 288,126 - 640,197 - 51,011 - - - 2,500 - 41,890 NET CHANGE IN WORKING CAPITAL 684,147 252,121 (57,268) 262,703 1,154,463 1,039 58,014 (753,717) 109,690 127,769 (3,504) 136,030 BEGINNING WORKING CAPITAL - January 1, 2014 14,189,404 12,952,797 1,826,811 15,762,939 1,504,560 801,284 261,934 1,815,731 - 1,976,512 3,406,012 5,920,444 ENDING WORKING CAPITAL - March 31, 2014 14,873,551 13,204,918 1,769,543 16,025,643 2,659,023 802,323 319,947 1,062,014 109,690 2,104,282 3,402,508 6,056,475 NET CHANGE IN WORKING CAPITAL 684,147 252,121 (57,268) 262,703 1,154,463 1,039 58,014 (753,717) 109,690 127,769 (3,504) 136,030 INTERNAL SERVICE FUNDSWORKING CAPITAL The following table presents the Working Capital Statement for each of the City's Enterprise and Internal Service funds. Working Capital is generally defined as the difference between current assets and current liabilities. CEMETERY INSURANCE WORKER'S COMPENSATION FACILITIESWATERSEWERSEWER METRO STORM SOLID WASTE AIRPORT ENTERPRISE FUNDS 23 INNOVATION EQUIPMENT & TECHNOLOGY RENTAL OPERATING REVENUES Charges For Service 2,692,854 1,787,178 - 2,202,721 3,216,867 4,110 245,508 - 205,811 - - - Interfund Charges For Service - - - - - - - - - 842,465 1,186,299 717,734 Sewer Metro Service Revenue - - 3,655,012 - - - - - - - - - Rents, Leases, Concessions, & Other - - - - - 157,022 - - - 23,253 26,782 - TOTAL OPERATING REVENUES 2,692,854 1,787,178 3,655,012 2,202,721 3,216,867 161,132 245,508 - 205,811 865,718 1,213,081 717,734 OPERATING EXPENSES Administration 734,555 564,396 - 724,677 179,812 113,188 60,959 753,979 - - - 208,609 Operations & Maintenance 1,202,026 803,944 - 724,731 280,057 1,761 128,274 - 96,137 736,019 1,217,514 334,716 Waste Management Payments - - - - 1,603,110 - - - - - - - Sewer Metro Services - - 3,712,563 - - - - - - - - - Depreciation & Amortization 608,533 477,146 - 382,931 4,705 100,421 13,962 - - - 125,493 188,286 TOTAL OPERATING EXPENSES 2,545,114 1,845,486 3,712,563 1,832,339 2,067,685 215,369 203,196 753,979 96,137 736,019 1,343,008 731,611 OPERATING INCOME (LOSS)147,740 (58,308) (57,551) 370,382 1,149,182 (54,238) 42,313 (753,979) 109,674 129,699 (129,927) (13,877) NON-OPERATING REVENUES & EXPENSES Interest Revenue 4,251 3,556 283 4,039 336 256 85 262 16 571 929 1,550 Other Non-Operating Revenue 3,707 148 - 1,972 240 (11,284) 1,654 - - - - 1,962 Gain (Loss) On Sale Of Fixed Assets - - - - - - - - - - - - Other Non-Operating Expense - - - - - - - - - - - - TOTAL NON-OPERATING REVENUES & EXPENSES 7,958 3,704 283 6,011 576 (11,028) 1,739 262 16 571 929 3,511 155,698 (54,603) (57,268) 376,392 1,149,758 (65,265) 44,052 (753,717) 109,690 130,269 (128,997) (10,366) Contributions 93,736 70,122 - 143,577 - 8,562 - - - - - - Transfers In - - - - - - - - - - - - Transfers Out (50,000) (50,000) - (124,000) - - - - - - - (7,000) TOTAL CONTRIBUTIONS & TRANSFERS 43,736 20,122 - 19,577 - 8,562 - - - - - (7,000) CHANGE IN FUND BALANCE 199,434 (34,482) (57,268) 395,969 1,149,758 (56,703) 44,052 (753,717) 109,690 130,269 (128,997) (17,366) BEGINNING FUND BALANCE - January 1, 2014 68,655,974 75,821,385 1,826,811 51,686,935 1,598,247 9,318,866 888,882 1,815,731 - 1,938,141 4,604,445 10,714,407 ENDING FUND BALANCE - March 31, 2014 68,855,408 75,786,903 1,769,543 52,082,904 2,748,005 9,262,163 932,934 1,062,014 109,690 2,068,410 4,475,448 10,697,041 INTERNAL SERVICE FUNDSFUND BALANCE The following table provides an analysis of each of the City's Enterprise and Internal Service funds - showing 2014 revenues and expenditures by fund. INCOME (LOSS) BEFORE CONTRIBUTIONS & TRANSFERS CEMETERY INSURANCE WORKER'S COMPENSATION FACILITIESWATERSEWERSEWER METRO STORM SOLID WASTE AIRPORT ENTERPRISE FUNDS 24