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HomeMy WebLinkAboutQ1 2015 Financial Report.pdf AGENDA BILL APPROVAL FORM Agenda Subject: 1st Quarter 2015 Financial Report Date: May 12, 2015 Department: Finance Attachments: Quarterly Financial Report Budget Impact: $0 Administrative Recommendation: For discussion only. Background Summary: The purpose of the quarterly 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 details can be found within the attached financial report. The first quarter status report is based on financial data available as of April 27, 2015 for the period ending March 31, 2015. Sales tax information represents business activity that occurred through January 2015. General Fund: The General Fund is the City’s largest fund and accounts for the majority of City resources and services, other than those required by statute to be accounted for in another fund. Through March 2015, General Fund revenues totaled $11.5 million and exceeded the year-to-date budget of $11.1 million due primarily to increased revenues from sales tax collections and development services fees. Retail sales tax collections through the first quarter of 2015 exceed budget by $217,000 or 6.4%, and exceed revenues collected for the same period last year by 2.6%. In addition, development services fees collected through the first quarter of 2015 exceed budget expectations by $193,000, and represents a 47.1% increase over the same period the year prior. The year-over-year increase was primarily due to the plan check revenues collected for the Promenade Apartment Project that will be located in the Lea Hill area. General Fund expenditures through March 2015 totaled $13.3 million, compared to $12.8 million spent the same period last year. The majority of the increases in year-over-year expenditures were seen in the Police Department. The increased expenditures within the Police Department were primarily in salary and benefit expenditures, as well as the charges paid to Valley Communications for 911 services. Overall, departmental spending through Q1-2015 was 7.6%, or $1.1 million, under budget due to several factors including the timing of project implementation, underspending in contingency funds, and continued vigilance in monitoring general spending. Year-to-date, 1,279 pet licenses have been sold resulting in $36,980 in revenue. For the same period in 2014, 1,684 licenses were sold resulting in $38,615 in revenue. 1 Agenda Subject: 1st Quarter 2015 Financial Report Date: 05/12/2015 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 had a net operating loss of $4,500 compared to net income of $153,100 in 2014. The Sewer fund ended the quarter with a net loss of $23,200 compared to a loss of $58,300 in 2014. The Sewer-Metro Utility ended the period with an operating loss of $214,700 compared to a loss of $57,600 in the previous year. Lastly, the Stormwater Utility ended the quarter with operating income of $422,300 which compares to operating income of $731,200 in 2014. The Cemetery ended the first quarter with net operating income of $109,500 compared to operating income of $42,300 in 2014. 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 Q1-2015 was $118.3 million, and compares to $120.5 million at the end of Q4-2014. 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 26, 2015 Item Number: 2 Quarterly Financial Report Through Q1 2015 GENERAL FUND SUMMARY YEAR-TO-DATE GENERAL FUND REVENUES AND EXPENSES (through Q1 2015) YEAR-TO-DATE GENERAL FUND EXPENSES BY DEPARTMENT (through Q1 2015) $0 $1 $2 $3 $4 $5 $6 $7 $8 $9 $10 Pr o p e r t y  Ta x e s Sa l e s  Ta x e s Oh e r  Ta x e s In t e r g o v e r n m e n t a l (G r a n t s ,  et c . ) De v e l o p m e n t Se r v i c e  Fe e s Cu l t u r e  & Re c r e a t i o n Ot h e r  Fe e s & Ch a r g e s Ot h e r Re v e n u e s Pe r s o n n e l Su p p l i e s & Se r v i c e s In t e r g o v e r n m e n t a l Ot h e r  Ex p e n s e s Revenues Expenses Mi l l i o n s YTD Budget YTD Actuals (Favorable) YTD Actuals (Unfavorable) $11.1 $9.7 $11.5 $9.2 $0 $2 $4 $6 $8 $10 $12 $14 $16 Total Revenues Total Expenses Mi l l i o n s $0 $1 $2 $3 $4 $5 $6 Co u n c i l & Ma y o r Ad m i n i s t r a t i v e Se r v i c e s Co m m u n i t y  & Hu m a n  Se r v i c e s Mu n i c i p a l  Co u r t & Pr o b a t i o n Hu m a n Re s o u r c e s Fi n a n c e Cit y  At t o r n e y Co m m u n i t y De v e l o p m e n t Ja i l  ‐   SC O R E Po l i c e Pu b l i c  Wo r k s Pa r k s ,  Ar t s & Re c r e a t i o n St r e e t s No n ‐ De p a r t m e n t a l Mil l i o n s YTD Budget YTD Actuals (Favorable) YTD Actuals (Unfavorable) 3 Quarterly Financial Report Through Q1 2015   General Fund 2014 Summary of Sources and Uses Annual BudgetYTD BudgetYTD ActualYTD ActualAmount Operating Revenues Property Tax 16,708,900$ 836,400$ 783,959$ 889,756$ (52,441)$ (6.3)% Sales Tax 13,662,0003,410,4003,627,1403,533,696 216,7406.4 % Sales Tax - Annexation Credit 1,856,000 457,800 487,969 467,105 30,1696.6 % Criminal Justice Sales Tax 1,589,000 395,100 444,625 411,139 49,52512.5 % Brokered Natural Gas Tax 282,000 97,800 83,760 92,221 (14,040)(14.4)% City Utilities Tax 3,452,300 857,900 830,856 830,310 (27,044)(3.2)% Admissions Tax 330,300 62,200 64,119 59,685 1,9193.1 % Electric Tax 3,435,600 847,100 777,771 871,122 (69,329)(8.2)% Natural Gas Tax 1,152,000 292,800 263,620 309,852 (29,180)(10.0)% Cable TV Franchise Fee 888,900 221,700 226,595 220,649 4,8952.2 % Cable TV Franchise Fee - Capital 63,000 18,000 18,071 15,720 710.4 % Telephone Tax 1,811,000 468,900 476,329 532,622 7,4291.6 % Garbage Tax (external)106,000 26,490 27,110 26,414 6202.3 % Leasehold Excise Tax 33,000 5,500 10,536 9,270 5,03691.6 % Gambling Excise Tax 232,400 60,600 70,728 73,243 10,128 16.7 % Taxes sub-total45,602,400$ 8,058,690$ 8,193,187$ 8,342,805$ 134,497$ 1.7 % Business License Fees219,000$ 83,200$ 115,833$ 72,322$ 32,633$ 39.2 % Building Permits 1,100,000 346,300 327,641 374,921 (18,659)(5.4)% Other Licenses & Permits 532,300 111,100 131,375 138,601 20,27518.2 % Intergovernmental (Grants, etc.)5,262,4301,164,393 1,213,1231,136,229 48,7314.2 % Charges for Services: General Government Services 96,500 26,200 23,767 28,101 (2,433)(9.3)% Public Safety 515,100 168,657 165,721 8,203 (2,936)(1.7)% Development Services Fees 680,000 162,100 355,121 241,389 193,021119.1 % Culture and Recreation 2,081,280 349,700 400,152 363,225 50,45214.4 % Fines and Forfeits 1,388,040 392,100 250,099 384,831 (142,001)(36.2)% Fees/Charges/Fines sub-total11,874,650$ 2,803,750$ 2,982,831$ 2,747,820$ 179,081$ 6.4 % Interests and Other Earnings 36,850$ 8,500$ 10,150$ 8,391$ 1,650$ 19.4 % Rents, Leases and Concessions 550,000 116,300 98,285 168,001 (18,015)(15.5)% Contributions and Donations 32,000 4,400 7,158 8,773 2,75862.7 % Other Miscellaneous 107,400 22,300 43,095 31,831 20,79593.3 % Transfers In 539,380 76,000 76,000 91,000 00.0 % Insurance Recoveries - Capital & Operating 25,000 6,300 58,487 11,532 52,187 828.4 % Other Revenues sub-total1,290,630$ 233,800$ 293,176$ 319,528$ 59,376$ 25.4 % Total Operating Revenues 58,767,680$ 11,096,240$ 11,469,194$ 11,410,153$ 372,954$ 3.4 % Operating Expenditures Council & Mayor 915,017$ 243,800$ 232,012$ 220,084$ 11,788$ 4.8 % Administration 1,253,403 313,500 182,908 154,511 130,59241.7 % Community & Human Services 878,323 213,200 160,056 194,025 53,14424.9 % Municipal Court & Probation 1,935,710 202,800 114,007 43,390 88,79343.8 % Human Resources 1,137,785 267,900 246,012 306,801 21,8888.2 % Finance 1,379,406 335,400 297,749 276,766 37,65111.2 % City Attorney 2,202,159 504,600 455,501 408,856 49,0999.7 % Community Development 4,311,5361,137,200 1,018,1981,036,784 119,00210.5 % Jail - SCORE 3,670,000 917,500 914,716 974,474 2,7840.3 % Police 23,423,1105,711,4005,540,5005,001,630 170,9003.0 % Public Works 2,641,027 658,800 653,336 724,228 5,4640.8 % Parks, Arts & Recreation 10,992,4132,497,9002,464,6942,170,790 33,2061.3 % Streets 3,365,676 766,000 558,209 769,106 207,79127.1 % Non-Departmental 4,707,695 607,537 442,453 568,037 165,08327.2 % Total Operating Expenditures 62,813,261$ 14,377,537$ 13,280,351$ 12,849,482$ 1,097,185$ 7.6 % 2015 2015 YTD Budget vs. Actual Favorable (Unfavorable) Percentage 4 Quarterly Financial Report Through Q1 2015   Overview This financial overview reflects the City’s overall financial position for the fiscal period ending March 31, 2015 and represents financial data available as of April 27, 2015. The budgeted revenues and operating expenditures are primarily based on the collection/disbursement average for the same period of the two prior years. Through the first quarter of 2015, General Fund revenues totaled $11.5 million compared to budget of $11.1 million and were $59,000 more than the revenues collected during the same period the year prior. Some notable variances to budget this quarter include: • Sales tax revenues totaled $3.6 million and were $217,000 higher than budget – with increased sales activity seen in the automotive and retail sales categories. • Development services fees totaled $355,000 and exceeded budget by $193,000. The increased revenues were attributable to plan check revenues – predominately collected for the Promenade Apartment Project that will be located in the Lea Hill area. • Culture and recreation revenues exceed year-to-date budget by $50,000 or 14.4%, primarily due to increased revenues collected at the Auburn Golf Course for greens fees this quarter compared to same period last year. • Fines and forfeits ended the quarter at $250,000 compared to budget of $392,000 and $385,000 collected the same period the year prior. The contributing factor in the year-over-year decline in revenues was due to the elimination of the Redflex Photo Enforcement program. The Q2-2015 Financial Report will reflect the anticipated reduction in Redflex revenues - as approved by Council in April 2015. General Fund expenditures for the first quarter totaled $13.3 million and compares to $12.8 million spent the same period last year. The majority of the increases in year-over-year expenditures were seen in the Police Department. The increased expenditures within the Police Department were primarily seen in salary and benefit expenditures, as well as the charges paid to Valley Communications for 911 services. Overall, departmental spending through Q1-2015 was 7.6%, or $1.1 million, under budget due to several factors including the timing of project implementation, underspending in contingency funds, and continued vigilance in monitoring general spending. $11.1 M $14.4 M $11.5 M $13.3 M $0.0$2.0$4.0$6.0$8.0$10.0$12.0$14.0$16.0 Revenues Expenditures $ Millions General Fund 2015 Revenues vs. Expenditures 2015 Actual 2015 Budget 5 Quarterly Financial Report Through Q1 2015   Revenues The combined total of property tax, sales/use tax, utility tax, gambling, and admissions tax provides approximately 80% of all resources supporting general governmental activities. The following section provides additional information on these sources. Property Tax collections through Q1-2015 totaled $784,000, compared to budget of $836,000. The majority of property tax revenues are collected during the months of April and October, coinciding with the due dates 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 JanFebMarAprMayJunJulAugSepOctNovDec Mi l l i o n s Property Taxes 2015 budget 2015 actual to date 2014 actual 6 Quarterly Financial Report Through Q1 2015   Sales tax distributions Citywide totaled $4.1 million of which $3.6 million was distributed to the General Fund and $519,000 was distributed to the Local Street Fund (SOS) program.* Through March 2015, total Sales Tax revenue collections in the General Fund exceeded budget expectations by $217,000, or 6.4%. * Beginning in 2013, Local Street Fund (Fund 103) street repairs have been funded from sales taxes on construction. The total amount transferred year-to-date through Q1-2015 was $518,935. 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 sector. $0.0 $2.0 $4.0 $6.0 $8.0 $10.0 $12.0 $14.0 JanFebMarAprMayJunJulAugSepOctNovDec Mi l l i o n s Sales & Use Tax (Net of Revenue from Construction) 2015 budget 2015 actual to date 2014 actual 20142015 Component GroupActualActualAmount Construction 463,259$ 518,935$ 55,676$ 12.0 % Manufacturing 349,574206,323(143,251)(41.0)% Transportation & Warehousing11,16516,1604,99644.7 % Wholesale Trade 282,129285,9793,8511.4 % Automotive 765,193859,38194,18812.3 % Retail Trade 1,287,3281,364,18476,8566.0 % Services 834,434905,07370,6388.5 % Miscellaneous 38,59923,358(15,241)(39.5)% YTD Total 4,031,681$ 4,179,393$ 147,713$ 3.7 % Change from 2014 March-2015 Comparison of Sales Tax Collections by SIC Group Percentage 7 Quarterly Financial Report Through Q1 2015   Total sales tax revenue collected through the first quarter of 2015 exceed prior year collections by $93,000 or 2.6%. The business sectors showing the largest increase in revenues compared to the same period last year were in the automotive industry and retail trade. Total sales tax revenue on construction, which is transferred to the Local Street Fund (Fund 103) for local street repair and maintenance, totaled $519,000 and exceeded both budget and prior year collections by $145,000 and $56,000 respectively. $0.0 $0.2 $0.4 $0.6 $0.8 $1.0 $1.2 $1.4 $1.6 $1.8 JanFebMarAprMayJunJulAugSepOctNovDec Mi l l i o n s Sales Tax on Construction Transfer 2015 budget 2015 actual 2014 actual 8 Quarterly Financial Report Through Q1 2015   Utility Taxes consist of interfund taxes on City utilities (Water, Sewer, Storm and Solid Waste) and taxes on external utilities (Electric, Natural Gas, Telephone and Solid Waste). Utility taxes collected through the first quarter of 2015 totaled $2.4 million, compared to budget of $2.5 million. As shown in the table below, overall utility tax revenues collected year-to-date were $2.4 million, resulting in underperformance to budget of $118,000, or 4.7%. A mild winter has reduced customer heating demands and resulted in year-over-year declines in electric and natural gas revenue collections. $0.0 $2.0 $4.0 $6.0 $8.0 $10.0 $12.0 JanFebMarAprMayJunJulAugSepOctNovDec Mi l l i o n s Utility Tax 2015 budget 2015 actual to date 2014 actual 201420152015 Utility Tax TypeActualBudgetActualAmount Amount City Interfund Utility Taxes830,310$ 857,900$ 830,856$ $ 546 0.1 % $ (27,044)(3.2)% Electric 871,122847,100777,771(93,351)(10.7)%(69,329)(8.2)% Natural Gas 309,852292,800263,620(46,233)(14.9)%(29,180)(10.0)% Telephone 532,622468,900476,329(56,292)(10.6)%7,429 1.6 % Solid Waste (external)26,41426,49027,110 696 2.6 %620 2.3 % YTD Total 2,570,320$ 2,493,190$ 2,375,686$ $ (194,634)(7.6)% $ (117,504)(4.7)% March-2015 Utility Tax by Type 2015 vs. 2014 Actual2015 vs. Budget Percentage Percentage 9 Quarterly Financial Report Through Q1 2015   Cable TV Franchise Fees, which are collected quarterly, totaled $227,000 and exceeded budget by $5,000 or 2.2%. $0 $100 $200 $300 $400 $500 $600 $700 $800 $900 1st Quarter2nd Quarter3rd Quarter4th Quarter Th o u s a n d s Cable TV Franchise Fee 2015 budget 2015 actual to date 2014 actual 10 Quarterly Financial Report Through Q1 2015   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 $328,000 and compare to a year-to-date budget of $346,000. Building permits issued through March total 190 and compare to 209 issued during the same period in 2014. Major projects contributing to revenues this quarter include several commercial and residential permits as well as numerous housing developments – most notably Edgeview, MainVue and Alicia Glenn. $0.0 $0.2 $0.4 $0.6 $0.8 $1.0 $1.2 $1.4 $1.6 JanFebMarAprMayJunJulAugSepOctNovDec Mi l l i o n s Building Permits 2015 budget 2015 actual to date 2014 actual 11 Quarterly Financial Report Through Q1 2015   Business license revenues collected through March totaled $116,000, and compare to $72,000 collected the same period in 2014; the difference is due to the timing of collections. The graphic below 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 $20 $40 $60 $80 $100 $120 $140 $160 $180 $200 $220 $240 JanFebMarAprMayJunJulAugSepOctNovDec Th o u s a n d s Business Licenses 2015 budget 2015 actual to date 2014 actual 12 Quarterly Financial Report Through Q1 2015   Intergovernmental revenues include Grants (Direct & Indirect Federal, State and Local), compact revenue from the Muckleshoot Indian Tribe (MIT), intergovernmental and state shared revenues. Collections to date totaled $1.2 million and were $49,000, or 4.2% higher than budget. 201420152015 Revenue ActualBudgetActualAmount Amount Federal Grants -$ -$ 7,672$ $ 7,672 N/A $ 7,672 N/A State Grants 8,26921,30030,88322,615 273.5 %9,583 45.0% Interlocal Grants 0 0 0 0 0.0 %0 N/A Muckleshoot Casino Emerg.127,433157,500158,61731,184 24.5 %1,117 0.7% Intergovernmental Service 23,351 05,231(18,120)(77.6)%5,231 N/A State Shared Revenues: Streamlined Sales Tax 496,027505,600490,179(5,848)(1.2)%(15,421)(3.1)% Motor Vehicle Fuel Tax 244,961224,900245,573612 0.2 %20,673 9.2% Criminal Justice - High Crime 048,00048,26648,266 N/A 266 0.6% Criminal Justice - Population 4,5584,3004,872313 6.9 %572 13.3% Criminal Justice - Special Prog.16,87016,40017,8991,028 6.1 %1,499 9.1% State DUI 3,3983,4003,280(118)(3.5)%(120)(3.5)% Liquor Excise 48,53925,40837,124(11,414)(23.5)%11,717 46.1% Liquor Profit 162,823157,585163,528705 0.4 %5,943 3.8% Total State Shared 977,176985,5931,010,72033,5443.4 %25,127 2.5% YTD Total 1,136,229$ 1,164,393$ 1,213,123$ 76,895$ 6.8 %48,731$ 4.2% March-2015 Intergovernmental 2015 vs. 2014 Actual2015 vs. Budget % Change % Change 13 Quarterly Financial Report Through Q1 2015   Charges for Services consist of general governmental services, public safety, development service fees and cultural & recreation fees. Overall, charges for services collected through the first quarter of 2015 totaled $945,000 and compare to a year-to-date budget of $707,000. Total revenues collected exceeded budget by $238,000, or 33.7%. General governmental revenues through Q1-2015 total $24,000 compared to a budget of $26,000. Public safety revenues collected year-to-date totaled $166,000 and compare to a budget of $169,000. Public safety revenues consist of revenues generated for Police Officer extra duty overtime, where officers are contracted for services and reimbursement is made by the hiring contractor. Effective June 2014, public safety revenue also includes reimbursement from the Muckleshoot Indian Tribe (MIT) for a full-time dedicated Police Officer and associated expenditures. Effective in the second quarter of 2014, the expenditures for Police Officer extra duty overtime are no longer netted against the revenues for this service. These two factors explain the year-over-year increase in public safety revenues collected between Q1-2014 and Q1- 2015. Development services fee collections, which primarily consist of plan check fees, totaled $355,000 and exceeded budget by $193,000. Total plan check fees collected this quarter totaled $307,000 and includes revenues related to several commercial and residential projects including the Promenade Apartment project on Lea Hill, as well as plans for the Edgeview and Sonata Hill housing developments. $0.0 $0.2 $0.4 $0.6 $0.8 $1.0 $1.2 JanFebMarAprMayJunJulAugSepOctNovDec Mi l l i o n s Development Service Fees 2015 budget 2015 actual to date 2014 actual 14 Quarterly Financial Report Through Q1 2015   Culture and recreation revenues exceeded budget by $50,000, reflecting increased sales at the Auburn Golf Course for green fees. $0.0 $0.2 $0.4 $0.6 $0.8 $1.0 $1.2 $1.4 $1.6 $1.8 $2.0 $2.2 $2.4 JanFebMarAprMayJunJulAugSepOctNovDec Mi l l i o n s Culture & Recreation 2015 budget 2015 actual to date 2014 actual 201420152015 Revenue ActualBudgetActualAmount Amount General Government 28,101$ 26,200$ 23,767$ $ (4,334)(15.4)% $ (2,433)(9.3)% Public Safety 8,203168,657165,721157,518 1,920.2 %(2,936)(1.7)% Development Services241,389162,100355,121113,732 47.1 %193,021 119.1 % Culture & Recreation363,225349,700400,15236,927 10.2 %50,452 14.4 % YTD Total 640,918$ 706,657$ 944,760$ 303,842$ 47.4 % $238,103 33.7 % March-2015 Charges for Services by Type 2015 vs. 2014 Actual2015 vs. Budget Percentage Percentage 15 Quarterly Financial Report Through Q1 2015   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 fines. Total revenue collected through Q1-2015 totaled $250,000, compared to prior year collections of $385,000. Effective June 2014, the Redflex Photo Enforcement Program was cancelled. This is the contributing factor that explains the year- over-year decline in fines and forfeit revenue. Effective in the Q2-2015 financial reporting, the budget for Redflex Photo Enforcement will be eliminated - consistent with Council approved Budget Amendment #1 which was approved in April 2015. 201420152015 MonthActualBudgetActualAmountAmount Civil Penalties4,341$ 3,300$ 3,037$ $ (1,304)(30.0)% $ (263)(8.0)% Civil Infraction Penalties127,636117,700138,88311,247 8.8 %21,183 18.0 % Redflex Photo Enforcement165,322191,8001,541(163,781)(99.1)%(190,259)(99.2)% Parking Infractions 26,83325,30033,1946,361 23.7 %7,894 31.2 % Criminal Traffic Misdemeanor12,67013,40016,3863,717 29.3 %2,986 22.3 % Criminal Non-Traffic Fines12,08712,50013,3351,248 10.3 %835 6.7 % Criminal Costs 12,4739,90016,1303,656 29.3 %6,230 62.9 % Non-Court Fines & Penalties23,46818,20027,5924,125 17.6 %9,392 51.6 % YTD Total 384,831$ 392,100$ 250,099$ $ (134,732)(35.0)% $ (142,001)(36.2)% March-2015 Fines & Forfeits by Type 2015 vs. 2014 Actual2015 vs. Budget Percentage Percentage $0.0 $0.2 $0.4 $0.6 $0.8 $1.0 $1.2 $1.4 JanFebMarAprMayJunJulAugSepOctNovDec Mi l l i o n s Fines & Penalties 2015 budget 2015 actual to date 2014 actual 16 Quarterly Financial Report Through Q1 2015   Miscellaneous revenues primarily consist of income from facility rentals; other sources within this category include investment earnings, contributions & donations and other miscellaneous income. Total revenues collected in this category through March totaled $159,000 and exceeded a budget expectation of $152,000. Although rents and leases revenue ended the quarter below budget expectations, this was offset by increased revenues collected for P-Card rebate monies in Q1. 201420152015 Month ActualBudgetActualAmount Amount Interest & Investments 8,391$ 8,500$ 10,150$ 1,759$ 21.0 %1,650$ 19.4 % Rents & Leases 168,001116,30098,285(69,716)(41.5)%(18,015)(15.5)% Contributions & Donations 8,7734,4007,158(1,615)(18.4)%2,75862.7 % Other Miscellaneous Revenue31,83122,30043,09511,26435.4 %20,79593.3 % YTD Total 216,997$ 151,500$ 158,689$ (58,308)$ (26.9)%7,189$ 4.7 % Miscellaneous Revenues by Type March-2015 2015 vs. 20142015 vs. Budget Percentage Percentage 17 Quarterly Financial Report Through Q1 2015   Real Estate Excise Tax (REET) revenue is receipted into the Capital Improvement Projects Fund and is used for governmental capital projects. REET revenues collected through Q1-2015 totaled $1.6 million, compared to a budget expectation of $276,000. The spike in revenue reflected in the graphic below represents the sale of several large businesses the City including the sale of Safeway, the Outlet Collection – Seattle, and Lakeland Town Center. 201420152015 MonthActualBudgetActualAmount Amount Jan 119,765$ 79,300$ 125,089$ 5,324$ 4.4%45,789$ 57.7% Feb 208,206107,300115,287(92,919)(44.6)%7,9877.4% Mar 118,57889,0001,394,2261,275,6481075.8%1,305,2261466.5% Apr 189,771106,800 (189,771)(100.0)%(106,800)(100.0)% May 243,472138,100 (243,472)(100.0)%(138,100)(100.0)% Jun 236,067140,500 (236,067)(100.0)%(140,500)(100.0)% Jul 305,214194,800 (305,214)(100.0)%(194,800)(100.0)% Aug 263,573157,800 (263,573)(100.0)%(157,800)(100.0)% Sep 182,829124,500 (182,829)(100.0)%(124,500)(100.0)% Oct 163,912144,600 (163,912)(100.0)%(144,600)(100.0)% Nov 259,026185,900 (259,026)(100.0)%(185,900)(100.0)% Dec 183,799131,400 (183,799)(100.0)%(131,400)(100.0)% YTD Total446,549$ 275,600$ 1,634,602$ 1,188,053$ 266.1%1,359,002$ 493.1% 2015 vs. 2014 2015 vs. Budget Percentage Real Estate Excise Tax Revenues March-2015 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 $2.6 JanFebMarAprMayJunJulAugSepOctNovDec Mi l l i o n s Real Estate Excise Tax 2015 budget 2015 actual to date 2014 actual 18 Quarterly Financial Report Through Q1 2015   Pet Licensing Year-to-date, 1,279 pet licenses have been sold resulting in $36,980 in revenue. For the same period in 2014, 1,684 licenses were sold resulting in $38,615 in revenue. 2015 Budget Goal: $240,000 or more 2015 Revenue = $36,980 2014 Revenue = $38,615 2015 Licenses Sold = 1,279 2014 Licenses Sold = 1,684 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 2015 vs 2014 2015 Licenses Issued 2014 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 2015 2015 License Revenue 19 Quarterly Financial Report Through Q1 2015   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 2015 vs 2014 2015 License Revenue (L) 2015 License Revenue (L)(Budget Goal: $240,000) 2015 Licenses Issued (R) 2014 Licenses Issued (R) 20 Quarterly Financial Report Through Q1 2015   Enterprise Funds 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 had a net operating loss of $4,500 compared to operating income of $153,100 in 2014. The Sewer Utility ended the quarter with an operating loss of $23,200 compared to an operating loss of $58,300 in 2014. The Sewer-Metro Utility ended the period with an operating loss of $214,700 compared to a loss of $57,600 for the previous year. The Stormwater Utility ended the quarter with $422,300 in net operating income which compares to operating income of $731,200 for the same period last year. 0 100,000 200,000 300,000 400,000 500,000 600,000 700,000 800,000 900,000 1,000,000 $0 $200 $400 $600 $800 $1,000 $1,200 $1,400 $1,600 JanFebMarAprMayJunJulAugSepOctNovDec CC F Th o u s a n d s Water Revenues vs Water Sold 2015 vs 2014 2014 Water Sales ($) 2015 Water Sales ($) 2014 Water Sold (ccf) 2015 Water Sold (ccf) 21 Quarterly Financial Report Through Q1 2015   The Cemetery Fund ended the first quarter with operating income of $109,500 compared to operating income of $42,300 for the same period last year. During the first quarter of 2015, the number of interments at the Cemetery totaled 61 (32 burials, 29 cremations) which compares to 61 (31 burials, 30 cremations) for the same period last year. $0 $20 $40 $60 $80 $100 $120 $140 $160 JanFebMarAprMayJunJulAugSepOctNovDec Th o u s a n d s Cemetery Operating Revenues & Expenditures By Month 2015 vs 2014 2015 Bud. Revenue 2015 Act. Revenue 2014 Act. Revenue 2015 Act. Expenses $0 $200 $400 $600 $800 $1,000 $1,200 JanFebMarAprMayJunJulAugSepOctNovDec Th o u s a n d s Cumulative Cemetery Revenues & Expenditures 2015 vs 2014 2015 Bud. Revenue 2015 Act. Revenue 2014 Act. Revenue 2015 Act. Expenses 22 Quarterly Financial Report Through Q1 2015   Internal Service Funds Operating expenditures within the Insurance Fund represent the premium cost pool that will be allocated monthly to other City funds over the course of 2015. As a result, this balance will gradually diminish each month throughout the year. No significant variances are reported in the Worker’s Compensation, Facilities, Innovation & Technology, or Equipment Rental Funds. All funds have sufficient revenues to cover year-to-date expenditures. Contact Information This report is prepared by the Finance Department. Additional financial information can also be viewed at our website: http://www.auburnwa.gov/. For any questions about this report please contact Shelley Coleman at scoleman@auburnwa.gov. 23 Investment Purchase Purchase Maturity Yield to Type Date Price Date Maturity State Investment Pool Various 102,031,795$ Various 0.16% KeyBank Money Market Various 9,607,137 Various 0.00% 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 1/15/2015 1,300,000 7/28/2017 0.89% FHLB 1/19/2014 2,047,200 11/19/2018 1.98% LAKUTL 9/25/2013 235,919 11/1/2017 1.90% Total Cash & Investments 118,279,801$ 0.198% Investment Mix % of Total State Investment Pool 86.3%Current 6-month treasury rate 0.11% KeyBank Money Market 8.1%Current State Pool rate 0.16% US Treasury 0.0%KeyBank Money Market 0.00% FFCB 2.5%Blended Auburn rate 0.20% FHLB 2.8% LAKUTL 0.2% 100.0% City of Auburn Investment Portfolio Summary March 31, 2015 Summary 24 SALES TAX SUMMARY MARCH 2015 SALES TAX DISTRIBUTIONS (FOR JANUARY 2015 RETAIL ACTIVITY) 2014 Annual Total 2014 YTD 2015 YTD YTD 2014 Annual Total 2014 YTD 2015 YTD YTDNAICSCONSTRUCTION (Nov '13-Oct '14)(Nov '13 - Jan '14)(Nov '14 - Jan '15)% Diff NAICS AUTOMOTIVE (Nov '13-Oct '14)(Nov '13 - Jan '14)(Nov '14 - Jan '15)% Diff 236 Construction of Buildings 866,060 217,681 315,254 44.8%441 Motor Vehicle and Parts Dealer 3,062,768 b 698,372 801,585 14.8% 237 Heavy and Civil Construction 146,261 45,976 37,474 -18.5%447 Gasoline Stations 246,636 66,822 57,796 -13.5% 238 Specialty Trade Contractors 741,211 199,603 166,208 -16.7%TOTAL AUTOMOTIVE 3,309,404 765,193 859,381 12.3%TOTAL CONSTRUCTION 1,753,532 463,259 518,935 12.0%Overall Change from Previous Year 94,188 Overall Change from Previous Year 55,676 2014 Annual Total 2014 YTD 2015 YTD YTD2014 Annual Total 2014 YTD 2015 YTD YTD NAICS RETAIL TRADE (Nov '13-Oct '14)(Nov '13 - Jan '14)(Nov '14 - Jan '15)% Diff NAICS MANUFACTURING (Nov '13-Oct '14)(Nov '13 - Jan '14)(Nov '14 - Jan '15)% Diff 442 Furniture and Home Furnishings 254,103 64,377 67,674 5.1% 311 Food Manufacturing 3,220 1,303 744 -42.9%443 Electronics and Appliances 236,955 109,048 63,945 -41.4% 312 Beverage and Tobacco Products 8,257 2,072 2,586 24.9%444 Building Material and Garden 502,470 94,483 119,230 26.2%313 Textile Mills 234 104 57 -45.6%445 Food and Beverage Stores 352,552 85,363 88,168 3.3%314 Textile Product Mills 2,970 950 831 -12.5%446 Health and Personal Care Store 187,715 50,584 60,307 f 19.2% 315 Apparel Manufacturing 244 129 74 -42.8%448 Clothing and Accessories 1,008,978 283,391 300,270 6.0% 316 Leather and Allied Products 15 3 -1 -130.5%451 Sporting Goods, Hobby, Books 212,015 70,146 64,815 -7.6% 321 Wood Product Manufacturing 76,560 20,433 15,004 -26.6%452 General Merchandise Stores 955,479 a 296,473 303,638 2.4% 322 Paper Manufacturing 5,237 1,628 1,771 8.8%453 Miscellaneous Store Retailers 587,784 142,520 188,794 32.5% 323 Printing and Related Support 44,114 9,294 15,187 63.4%454 Nonstore Retailers 381,876 90,942 107,343 18.0%324 Petroleum and Coal Products 10,293 2,860 1,253 -56.2%TOTAL RETAIL TRADE 4,679,929 1,287,328 1,364,184 6.0% 325 Chemical Manufacturing 5,397 1,417 1,423 0.4%Overall Change from Previous Year 76,856 326 Plastics and Rubber Products 9,844 1,899 2,636 38.8% 327 Nonmetallic Mineral Products 19,801 3,882 -45 e -101.2% 331 Primary Metal Manufacturing 1,542 874 1,240 41.9%2014 Annual Total 2014 YTD 2015 YTD YTD332Fabricated Metal Product Manuf 33,900 5,888 7,369 25.2%NAICS SERVICES (Nov '13-Oct '14)(Nov '13 - Jan '14)(Nov '14 - Jan '15)% Diff 333 Machinery Manufacturing 24,491 6,599 7,115 7.8%51*Information 486,856 122,089 132,647 d 8.6% 334 Computer and Electronic Product 18,265 8,156 1,760 -78.4%52*Finance and Insurance 87,574 22,296 22,742 2.0% 335 Electric Equipment, Appliances 1,179 193 391 102.7%53*Real Estate, Rental, Leasing 314,900 86,678 82,847 -4.4% 336 Transportation Equipment Man 837,227 265,827 132,009 -50.3%541 Professional, Scientific, Tech 216,494 45,848 53,353 16.4%337 Furniture and Related Products 21,248 3,738 3,723 -0.4%551 Company Management 43 26 9,211 35544.4% 339 Miscellaneous Manufacturing 39,052 12,324 11,195 -9.2%56*Admin. Supp., Remed Svcs 350,417 95,100 81,475 -14.3% TOTAL MANUFACTURING 1,163,090 349,574 206,323 -41.0%611 Educational Services 49,123 11,754 11,671 -0.7% Overall Change from Previous Year -143,251 62*Health Care Social Assistance 66,359 6,212 32,128 417.2% 71*Arts and Entertainment 157,908 81,349 64,702 -20.5% 72*Accommodation and Food Svcs 1,066,580 242,296 270,630 11.7%2014 Annual Total 2014 YTD 2015 YTD YTD 81*Other Services 425,896 101,947 114,493 12.3% NAICS TRANSPORTATION AND WAREHOUSING (Nov '13-Oct '14)(Nov '13 - Jan '14)(Nov '14 - Jan '15)% Diff 92*Public Administration 99,676 18,839 29,174 54.9% 481 Air Transportation 0 0 0 N/A TOTAL SERVICES 3,321,827 834,434 905,073 8.5% 482 Rail Transportation 8,069 1,555 3,186 104.9%Overall Change from Previous Year 70,638 484 Truck Transportation 4,740 886 2,375 168.1% 485 Transit and Ground Passengers 4 0 125 N/A 488 Transportation Support 26,786 7,130 7,322 2.7%2014 Annual Total 2014 YTD 2015 YTD YTD 491 Postal Service 691 256 81 -68.4%NAICS MISCELLANEOUS (Nov '13-Oct '14)(Nov '13 - Jan '14)(Nov '14 - Jan '15)% Diff 492 Couriers and Messengers 672 249 1 -99.5%000 Unknown 0 0 0 N/A 493 Warehousing and Storage 29,718 c 1,089 3,071 181.9%111-115 Agriculture, Forestry, Fishing 7,488 796 1,260 58.4% TOTAL TRANSPORTATION 70,679 11,165 16,160 44.7%211-221 Mining & Utilities 28,687 4,387 4,086 -6.9% Overall Change from Previous Year 4,996 999 Unclassifiable Establishments 83,442 33,416 18,011 -46.1%TOTAL SERVICES 119,617 38,599 23,358 -39.5%Overall Change from Previous Year -15,241 2014 Annual Total 2014 YTD 2015 YTD YTD NAICS WHOLESALE TRADE (Nov '13-Oct '14)(Nov '13 - Jan '14)(Nov '14 - Jan '15)% Diff 423 Wholesale Trade, Durable Goods 1,024,016 240,348 240,503 0.1%GRAND TOTAL 15,622,791 4,031,681 4,179,393 424 Wholesale Trade, Nondurable 178,054 41,079 44,988 9.5%Overall Change from Previous Year 147,713 3.7% 425 Wholesale Electronic Markets 2,643 702 488 -30.5% TOTAL WHOLESALE 1,204,714 282,129 285,979 1.4%Overall Change from Previous Year 3,851 a. WA State Dept of Revenue audit adjustment to sales tax returns for period March 2014 (adjustment: -$45,145). b. WA State Dept of Revenue audit adjustment to sales tax returns for period April 2014 (adjustment: $10,242). c. WA State Dept of Revenue audit adjustment to sales tax returns for period August 2014 (adjustment: $25,146). d. WA State Dept of Revenue audit adjustment to sales returns for period November 2014 (adjustment: $5,167).e. WA State Dept of Revenue audit adjustment to sales tax returns for period December 2014 (adjustment: -$2,382).f. WA State Dept of Revenue audit adjustment to sales tax returns for period March 2015 (adjustment: $4,463.93). 03/25/15 file:Monthly Sales Tax Report.xls Prepared by Auburn Finance Department 25 INNOVATION EQUIPMENT & TECHNOLOGY RENTAL OPERATING REVENUES Charges For Service 2,804,998$ 1,865,860$ -$ 2,306,013$ 3,279,743$ 4,040$ 358,184$ -$ 181,518$ -$ -$ -$ Interfund Charges For Service - - - - - - - - - 861,822 1,347,833 866,366 Sewer Metro Service Revenue - - 3,724,264 - - - - - - - - - Rents, Leases, Concessions, & Other - - - - - 161,978 - - - 16,363 37,698 - TOTAL OPERATING REVENUES 2,804,998$ 1,865,860$ 3,724,264$ 2,306,013$ 3,279,743$ 166,018$ 358,184$ -$ 181,518$ 878,185$ 1,385,531$ 866,366$ OPERATING EXPENSES Salaries & Wages 600,885$ 398,794$ -$ 578,181$ 99,631$ 7,143$ 98,552$ -$ 19,841$ 124,935$ 367,075$ 149,399$ Benefits 278,900 184,102 - 266,688 46,226 2,469 48,753 - 40,733 61,781 153,125 74,299 Supplies 54,746 10,404 - 10,224 7,704 - 47,401 - - 20,391 96,596 180,189 Other Service Charges 793,836 508,432 - 257,468 264,633 109,012 24,602 812,131 93,176 230,328 813,826 75,124 Intergovernmental Services - - - 11,090 - - - - - - - - Waste Management Payments 1 - - - - 2,479,569 - - - - - - - Sewer Metro Services - - 3,938,931 - - - - - - - - - Interfund Operating Rentals & Supplies 322,644 242,568 - 333,551 26,123 - 16,365 - - 28,704 40,539 54,197 Other Expenses - - - - - - - - - - - - Depreciation & Amortization 758,469 544,788 - 426,494 4,705 121,642 13,044 - - - 148,614 217,478 TOTAL OPERATING EXPENSES 2,809,479$ 1,889,087$ 3,938,931$ 1,883,695$ 2,928,591$ 240,266$ 248,717$ 812,131$ 153,750$ 466,140$ 1,619,775$ 750,685$ OPERATING INCOME (LOSS)(4,482)$ (23,228)$ (214,667)$ 422,319$ 351,152$ (74,247)$ 109,467$ (812,131)$ 27,768$ 412,045$ (234,244)$ 115,681$ NON-OPERATING REVENUES & EXPENSES Interest Revenue 5,218$ 4,616$ 141$ 5,119$ 750$ 307$ 138$ 258$ 151$ 846$ 1,192$ 1,951$ Contributions - - - 250,000 - - - - - - - 816 Other Non-Operating Revenue 12,589 799 - 2,589 280 (5,737) (0) - - - - 1,818 Gain (Loss) On Sale Of Fixed Assets - - - - - - - - - - - - Debt Service Interest - - - - - - - - - - - - Other Non-Operating Expense - - - - - - - - - - - - TOTAL NON-OPERATING REVENUES & EXPENSES 17,806$ 5,415$ 141$ 257,709$ 1,030$ (5,430)$ 138$ 258$ 151$ 846$ 1,192$ 4,586$ PLUS ITEMS NOT AFFECTING WORKING CAPITAL Depreciation 758,469$ 544,788$ -$ 426,494$ 4,705$ 121,642$ 13,044$ -$ -$ -$ 148,614$ 217,478$ NET WORKING CAPITAL FROM OPERATIONS 771,794$ 526,976$ (214,526)$ 1,106,521$ 356,887$ 41,965$ 122,649$ (811,873)$ 27,919$ 412,891$ (84,438)$ 337,745$ Increase In Contributions - System Development 178,576$ 103,156$ -$ 119,070$ -$ -$ -$ -$ -$ -$ -$ -$ Increase In Contributions - Area Assessments 500 6,891 - - - - - - - - - - Increase In Contributions - Other Governments - - - - - - - - - - - - Increase In Contributions - Other Funds - - - - - - - - - - - - Increase In Contributions - FAA - - - - - - - - - - - - Proceeds of Debt Activity - - - - - - - - - - - - Operating Transfers In - - - 51,373 - - - - - - - - Increase In Restricted Net Assets 3,423 - - - - (341) - - - - - - Decrease In Long-Term Receivables - - - - - - - - - - - - Increase In Deferred Credits - - - - - 15,899 - - - - - - TOTAL RESOURCES OTHER THAN OPERATIONS 182,499$ 110,047$ -$ 170,443$ -$ 15,558$ -$ -$ -$ -$ -$ -$ Net Change In Restricted Net Assets 633$ 171$ -$ 395$ -$ (1,037)$ -$ -$ -$ -$ -$ -$ Increase In Fixed Assets - Salaries 84,463 44,970 - 68,168 - - - - - - - - Increase In Fixed Assets - Benefits 35,498 20,259 - 27,119 - - - - - - - - Increase In Fixed Assets - Site Improvements 13,834 - - - - - - - - - - - Increase In Fixed Assets - Land - - - 250,000 - - - - - - - - Increase In Fixed Assets - Equipment - - - - - - - - - - 217,657 201,320 Increase In Fixed Assets - Construction 555,979 412,273 - 249,469 - 165,401 - - - - - - Increase In Fixed Assets - Other - - - 429 - - - - - - - - Operating Transfers Out 50,000 50,000 - 124,000 - - - - - - - 51,373 Debt Service Principal - - - - - - - - - - - - TOTAL USES OTHER THAN OPERATIONS 740,407$ 527,673$ -$ 719,580$ -$ 164,364$ -$ -$ -$ -$ 217,657$ 252,693$ NET CHANGE IN WORKING CAPITAL 213,887$ 109,350$ (214,526)$ 557,385$ 356,887$ (106,842)$ 122,649$ (811,873)$ 27,919$ 412,891$ (302,095)$ 85,051$ BEGINNING WORKING CAPITAL - January 1, 2015 14,027,406 13,346,282 2,100,400 16,051,080 2,491,724 556,938 294,547 1,654,057 440,004 2,194,912 3,543,327 5,844,690 ENDING WORKING CAPITAL - March 31, 2015 14,241,292 13,455,633 1,885,874 16,608,465 2,848,611 450,096 417,196 842,184 467,923 2,607,803 3,241,232 5,929,741 NET CHANGE IN WORKING CAPITAL 213,887$ 109,350$ (214,526)$ 557,385$ 356,887$ (106,842)$ 122,649$ (811,873)$ 27,919$ 412,891$ (302,095)$ 85,051$ 1 March's Waste Management payment in the amount of $835,316 has been added to the Solid Waste Fund and is reflected in the Ending Working Capital balance. 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. WORKING CAPITAL ENTERPRISE FUNDS INTERNAL SERVICE FUNDS WATER SEWER SEWER METRO STORM SOLID WASTE AIRPORT CEMETERY INSURANCE WORKER'S COMPENSATION FACILITIES 26