Loading...
HomeMy WebLinkAboutQ2 2015 Financial Report.pdf AGENDA BILL APPROVAL FORM Agenda Subject: 2nd Quarter 2015 Financial Report Date: August 11, 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 second quarter status report is based on financial data available as of July 30, 2015 for the period ending June 30, 2015. Sales tax information represents business activity that occurred through April 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 June 2015, General Fund revenues totaled $30.9 million and exceed the year-to-date budget of $29.8 million due primarily to increased revenues from sales tax collections, development services fees, and revenues from culture and recreation activities. Retail sales tax collections through the second quarter of 2015 exceed budget by $467,000 or 7.1%, and exceed revenues collected for the same period last year by $360,000. Development services fees collected through the first half of 2015 exceed budget expectations by $314,000, or 78.3%, due primarily to an increase in plan check revenues, which have already exceeded budget for the year. In addition, culture and recreation revenues exceed budget by $204,000, or 19.7%, primarily due to higher than anticipated revenues for greens fees at the Auburn Golf Course as well as an increase in revenues for league fees. These favorable increases are slightly offset by lower than budgeted collections for electric and natural gas taxes ($345,000, or 13.0%) due primarily to a mild winter that reduced customer heating demands. This also resulted in a year-over-year decline in electric and natural gas collections from the same period last year. General Fund expenditures through the first half of 2015 totaled $28.4 million compared to a budget of $30.4 million. Year-to-date General Fund expenditures are running 7.3% or $1.9 million higher than the same period last year. The increase in year-over-year expenditures is due to several factors, including a $1.3 million transfer to Cumulative Reserve to replenish prior withdrawals, and an increase in interfund charges (particularly in Innovation and Technology due to increased operating and equipment replacement costs, and in Equipment Rental due to the addition of the Golf Course to the General Fund and increased operating, capital construction and replacement costs). In addition, salary and benefit costs have increased year-to-date by $565,000, or 3.7% due to lower departmental vacancies compared to the year prior as well as increased costs associated with health care and pensions. Year-to-date, 2,563 pet licenses have been sold resulting in $73,605 in revenue. For the same period in 2014, 3,063 licenses were sold resulting in $76,930 in revenue. 1 Agenda Subject: 2nd Quarter 2015 Financial Report Date: 08/11/2015 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 second quarter, the Water fund had operating income of $110,400 compared to operating income of $273,800 in 2014. The Sewer fund ended the quarter with a net loss of $17,000 compared to income of $81,000 in 2014. The Sewer-Metro Utility ended the period with an operating loss of $174,000 compared to operating income of $1,303,100 in the previous year. Lastly, the Stormwater Utility ended the quarter with operating income of $692,300 which compares to operating income of $759,200 in 2014. The Cemetery ended the second quarter with net operating income of $68,200 compared to an operating loss of $28,000 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 Q2-2015 was $121.9, and compares to $118.3 million at the end of Q1-2015. 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: August 24, 2015 Item Number: 2 Quarterly Financial Report Through Q2-2015 General Fund Summary Pr o p e r t y T a x e s Sa l e s T a x e s Oh e r T a 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 , e t c . ) De v e l o p m e n t Se r v i c e F e e s Cu l t u r e & Re c r e a t i o n Ot h e r F e e s & C h 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 & S e 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 E x p e n d i t u r e s Revenues Expenditures $0 $2 $4 $6 $8 $10 $12 $14 $16 $18 Mi l l i o n s YTD Budget YTD Actuals (Favorable) YTD Actuals (Unfavorable) Year-To-Date General Fund Revenues and Expenditures (Through Q2-2015) $29.8 $30.4$30.9 $28.4 Total Revenues Total Expenditures $0 $5 $10 $15 $20 $25 $30 $35 Mi l l i o n s Co u n c i l & M a 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 S e r v i c e s Mu n i c i p a l C o u r t & P r 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 Ci t y A t 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 - S C O R E Po l i c e Pu b l i c W o r k s Pa r k s , A r t s & R e 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 $0 $2 $4 $6 $8 $10 $12 Mil l i o n s YTD Budget YTD Actuals (Favorable) YTD Actuals (Unfavorable) Year-To-Date General Fund Expenditures by Department (Through Q2-2015) 3 Quarterly Financial Report Through Q2-2015 General Fund 2014 Summary of Sources and Uses Annual Budget YTD Budget YTD Actual YTD Actual Amount Operating Revenues Property Tax 17,182,600$ 9,040,600$ 9,082,406$ 8,345,532$ 41,806$ 0.5 % Sales Tax 13,662,000 6,613,100 7,080,481 6,720,176 467,381 7.1 % Sales Tax - Annexation Credit 1,856,000 887,200 953,126 886,979 65,926 7.4 % Criminal Justice Sales Tax 1,589,000 760,000 861,400 791,944 101,400 13.3 % Brokered Natural Gas Tax 282,000 178,700 159,349 174,971 (19,351)(10.8)% City Utilities Tax 3,452,300 1,695,000 1,719,324 1,683,352 24,324 1.4 % Admissions Tax 330,300 135,300 135,674 133,624 374 0.3 % Electric Tax 3,435,600 1,873,800 1,648,480 1,901,539 (225,320)(12.0)% Natural Gas Tax 1,152,000 778,900 659,020 786,907 (119,880)(15.4)% Cable TV Franchise Fee 888,900 442,900 455,052 441,481 12,152 2.7 % Cable TV Franchise Fee - Capital 63,000 36,100 36,324 31,598 224 0.6 % Telephone Tax 1,811,000 901,400 871,239 916,112 (30,161)(3.3)% Garbage Tax (external)106,000 52,980 54,854 52,926 1,874 3.5 % Leasehold Excise Tax 33,000 16,700 35,020 17,649 18,320 109.7 % Local Gambling Tax 232,400 114,200 82,550 137,999 (31,650)(27.7)% Taxes sub-total 46,076,100$ 23,526,880$ 23,834,301$ 23,022,789$ 307,421$ 1.3 % Business License Fees 219,000$ 106,000$ 137,902$ 94,037$ 31,902$ 30.1 % Building Permits 1,100,000 652,400 645,220 833,282 (7,180)(1.1)% Other Licenses & Permits 532,300 251,100 269,145 327,199 18,045 7.2 % Intergovernmental (Grants, etc.)5,466,451 2,571,785 2,602,995 2,377,371 31,210 1.2 % Charges for Services: General Government Services 96,500 50,900 43,704 64,122 (7,196)(14.1)% Public Safety 515,100 297,432 287,517 287,781 (9,915)(3.3)% Development Services Fees 680,000 401,000 715,082 638,333 314,082 78.3 % Culture and Recreation 2,058,080 1,032,600 1,236,235 1,110,564 203,635 19.7 % Fines and Forfeits 788,040 414,700 485,978 758,806 71,278 17.2 % Fees/Charges/Fines sub-total 11,455,471$ 5,777,917$ 6,423,778$ 6,491,494$ 645,861$ 11.2 % Interest and Other Earnings 36,850$ 17,900$ 23,497$ 18,714$ 5,597$ 31.3 % Rents, Leases and Concessions 573,200 308,500 301,118 371,808 (7,382)(2.4)% Contributions and Donations 32,000 16,200 20,852 25,789 4,652 28.7 % Other Miscellaneous 107,400 46,700 102,512 68,888 55,812 119.5 % Transfers In 539,380 76,000 76,000 121,097 0 0.0 % Insurance Recoveries - Capital & Operating 25,000 12,600 110,458 40,229 97,858 776.7 % Other Revenues sub-total 1,313,830$ 477,900$ 634,438$ 646,526$ 156,538$ 32.8 % Total Operating Revenues 58,845,401$ 29,782,697$ 30,892,517$ 30,160,808$ 1,109,820$ 3.7 % Operating Expenditures Council & Mayor 915,017$ 460,000$ 446,739$ 381,106$ 13,261$ 2.9 % Administration 1,299,136 649,800 434,188 327,627 215,612 33.2 % Community & Human Services 1,348,323 692,900 423,553 443,788 269,347 38.9 % Municipal Court & Probation 1,935,710 405,600 272,076 85,577 133,524 32.9 % Human Resources 1,137,785 553,600 510,844 642,027 42,756 7.7 % Finance 1,329,284 677,900 623,422 567,757 54,478 8.0 % City Attorney 2,202,159 1,116,500 912,293 827,842 204,207 18.3 % Community Development 4,606,675 2,272,000 1,919,180 1,880,297 352,820 15.5 % Jail - SCORE 3,670,000 1,835,000 1,829,432 2,464,589 5,568 0.3 % Police 22,887,782 11,129,300 10,811,956 9,965,305 317,344 2.9 % Public Works 2,641,027 1,270,400 1,326,774 1,279,946 (56,374)(4.4)% Parks, Arts & Recreation 11,067,413 5,460,900 5,351,703 4,761,923 109,197 2.0 % Streets 3,365,676 1,506,500 1,289,104 1,469,914 217,396 14.4 % Non-Departmental 4,660,748 2,408,328 2,298,317 1,411,850 110,011 4.6 % Total Operating Expenditures 63,066,735$ 30,438,728$ 28,449,580$ 26,509,549$ 1,989,147$ 6.5 % 2015 2015 YTD Budget vs. Actual Favorable (Unfavorable) Percentage 4 Quarterly Financial Report Through Q2-2015 Overview This financial overview reflects the City’s overall financial position for the fiscal period ending June 30, 2015 and represents financial data available as of July 30, 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 half of 2015, General Fund revenues totaled $30.9 million compared to a budget of $29.8 million and were $732,000 higher than the revenues collected during the same period the year prior. Some notable variances to budget year-to-date include:  General Fund sales tax revenues totaled $7.1 million and exceeded budget by 7.1% or $467,000, and exceed prior year collections by $360,000. The areas of significant increase in sales activity are primarily in the automotive, retail trade, and construction categories.  Development services fees totaled $715,000 and exceeded budget by $314,000. The increased revenues were attributable to plan check revenues which total $576,000 through Q2-2015 and compare to a year-to-date budget of $324,000.  Culture and recreation revenues exceeded the year-to-date budget by $204,000 and exceed collections for the same period last year by $126,000. The year-over-year increase is primarily due to $91,000 in increased revenues collected at the Auburn Golf Course for greens fees this year compared to the same period last year (representing a 19.5% increase).  Electric tax revenues and natural gas tax revenues year-to-date are running under budget by $225,000 and $120,000 respectively due primarily to a mild winter, which reduced the customer demand for heating. General Fund expenditures through the first half of 2015 totaled $28.4 million compared to a budget of $30.4 million. Year-to-date General Fund expenditures are running 7.3% or $1.9 million higher than the same period last year. The increase in year-over-year expenditures are due to several factors including a $1.3 million transfer to Cumulative Reserve to replenish prior withdrawals, and an increase in interfund costs (particularly in Innovation and Technology, due to increased operating and equipment replacement costs, and in Equipment Rental due to the addition of the Golf Course to the General Fund and increased operating, capital construction and replacement costs). In addition, salary and benefit costs have increased year-to-date by $565,000, or 3.7% due to lower departmental vacancies compared to the year prior as well as increase costs associated with health care and pensions. Lastly, the cost of providing 911 services in 2015 has increased 30% over the year prior. 5 Quarterly Financial Report Through Q2-2015 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 Q2-2015 totaled $9.1 million and is on target to end the year at budget. The property tax revenue collection through June 2015 compares to $8.3 million collected the same period the year prior, which represents an 8.8% increase year-over-year. $29.8 M $30.4 M $30.9 M $28.4 M $0.0 $5.0 $10.0 $15.0 $20.0 $25.0 $30.0 $35.0 $40.0 Revenues Expenditures $ Millions General Fund 2015 Revenues vs. Expenditures 2015 YTD Actual 2015 YTD Budget $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 2015 YTD Budget 2015 YTD Actual 2014 Actual 6 Quarterly Financial Report Through Q2-2015 Sales tax distributions Citywide totaled $8.1 million of which $7.1 million was distributed to the General Fund and $997,000 was distributed to the Local Street Fund (SOS) program.* Through June 2015, total Sales Tax revenue collected in the General Fund exceeded budget expectations by $467,000, or 7.1%. * 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 Q2-2015 was $996,884. 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 $14.0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Mi l l i o n s Sales & Use Tax (Net of Revenue from Construction) 2015 YTD Budget 2015 YTD Actual 2014 Actual 2014 2015 Component Group Actual Actual Amount Construction 858,847$ 996,884$ 138,037$ 16.1 % Manufacturing 576,227 436,192 (140,034)(24.3)% Transportation & Warehousing 19,651 28,097 8,446 43.0 % Wholesale Trade 583,189 609,203 26,014 4.5 % Automotive 1,546,982 1,778,094 231,112 14.9 % Retail Trade 2,315,684 2,483,952 168,268 7.3 % Services 1,620,072 1,728,219 108,146 6.7 % Miscellaneous 75,543 30,968 (44,575)(59.0)% YTD Total 7,596,196$ 8,091,609$ 495,413$ 6.5 % Change from 2014 June-2015 Comparison of Sales Tax Collections by SIC Group Percentage 7 Quarterly Financial Report Through Q2-2015 Total sales tax revenue collected through Q2-2015 exceeded prior year collections by $360,000 or 5.4%. The business sectors showing the largest increase in revenues compared to the same period last year were in the automotive industry, retail trade and construction. Total sales tax revenue on construction, which is transferred to the Local Street Fund (Fund 103) for local street repair and maintenance, totaled $997,000 and exceeded both budget and prior year collections by $283,000 and $138,000 respectively. $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 Sales Tax on Construction Transfer 2015 YTD Budget 2015 YTD Actual 2014 Actual 8 Quarterly Financial Report Through Q2-2015 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 second quarter of 2015 totaled $5.0 million, compared to a budget of $5.3 million. As shown in the table below, overall utility tax revenues collected year-to-date were $5.0 million, resulting in underperformance relative to budget of $349,000, or 6.6%. A mild winter has reduced customer heating demands and resulted in year-over-year declines in electric and natural gas revenue sales and therefore tax collections. $0.0 $2.0 $4.0 $6.0 $8.0 $10.0 $12.0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Mi l l i o n s Utility Tax 2015 YTD Budget 2015 YTD Actual 2014 Actual 2014 2015 2015 Utility Tax Type Actual Budget Actual Amount Amount City Interfund Utility Taxes 1,683,352$ 1,695,000$ 1,719,324$ $ 35,973 2.1 % $ 24,324 1.4 % Electric 1,901,539 1,873,800 1,648,480 (253,060)(13.3)%(225,320)(12.0)% Natural Gas 786,907 778,900 659,020 (127,887)(16.3)%(119,880)(15.4)% Telephone 916,112 901,400 871,239 (44,873)(4.9)%(30,161)(3.3)% Solid Waste (external)52,926 52,980 54,854 1,928 3.6 %1,874 3.5 % YTD Total 5,340,837$ 5,302,080$ 4,952,918$ $ (387,919)(7.3)% $ (349,162)(6.6)% June-2015 Utility Tax by Type 2015 vs. 2014 Actual 2015 vs. Budget Percentage Percentage 9 Quarterly Financial Report Through Q2-2015 Cable TV Franchise Fees, which are collected quarterly, totaled $455,000 and exceeded budget by $12,000 or 2.7%. $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 2015 YTD Budget 2015 YTD Actual 2014 Actual 10 Quarterly Financial Report Through Q2-2015 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 June totaled $645,000 compared to a year-to- date budget of $652,000. Building permits issued through June total 385 and compare to 453 issued during the same period in 2014. Major projects contributing to revenues this quarter include building permits for the Merrill Gardens Senior Living development and Lakeland Hills Storage, as well as numerous housing developments – most notably Edgeview and Sonata Hill. $0.0 $0.2 $0.4 $0.6 $0.8 $1.0 $1.2 $1.4 $1.6 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Mi l l i o n s Building Permits 2015 YTD Budget 2015 YTD Actual 2014 Actual 11 Quarterly Financial Report Through Q2-2015 Business license revenues collected through June totaled $138,000 compared to $94,000 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 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Th o u s a n d s Business Licenses 2015 YTD Budget 2015 YTD Actual 2014 Actual 12 Quarterly Financial Report Through Q2-2015 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 $2.6 million and were $31,000, or 1.2%, higher than budget. 2014 2015 2015 Revenue Actual Budget Actual Amount Amount Federal Grants 44,199$ 103,700$ 67,622$ $ 23,423 53.0 % $(36,078)(34.8)% State Grants 25,319 116,300 118,572 93,253 368.3 %2,272 2.0 % Muckleshoot Casino Emerg.286,050 315,000 296,987 10,937 3.8 %(18,013)(5.7)% Intergovernmental Service 23,351 0 8,556 (14,796)(63.4)%8,556 N/A State Shared Revenues: Streamlined Sales Tax 988,422 1,007,500 980,842 (7,580)(0.8)%(26,658)(2.6)% Motor Vehicle Fuel Tax 485,842 449,200 495,526 9,684 2.0 %46,326 10.3 % Criminal Justice - High Crime 0 96,000 96,509 96,509 N/A 509 0.5 % Criminal Justice - Population 9,148 8,600 9,742 594 6.5 %1,142 13.3 % Criminal Justice - Special Prog.34,196 32,800 35,793 1,597 4.7 %2,993 9.1 % State DUI 6,665 6,700 6,560 (105)(1.6)%(140)(2.1)% Fire Insurance Tax 77,558 70,000 75,702 (1,855)(2.4)%5,702 8.1 % Liquor Excise 70,980 50,815 83,566 12,586 17.7 %32,751 64.5 % Liquor Profit 325,643 315,170 327,019 1,375 0.4 %11,849 3.8 % Total State Shared:1,998,453 2,036,785 2,111,259 112,806 5.6 %74,474 3.7 % YTD Total 2,377,371$ 2,571,785$ 2,602,995$ 225,624$ 9.5 %31,210$ 1.2 % June-2015 Intergovernmental 2015 vs. 2014 Actual 2015 vs. Budget % Change % Change 13 Quarterly Financial Report Through Q2-2015 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 half of 2015 totaled $2.3 million as compared to a year-to-date budget of $1.8 million. Total revenues collected exceeded budget by $501,000, or 28.1%. General governmental revenues through Q2-2015 total $44,000 compared to a budget of $51,000. Public safety revenues collected year-to-date totaled $288,000 and compare to a budget of $297,000. 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. Development services fee collections, which primarily consist of plan check fees, totaled $715,000 and exceeded budget by $314,000. Total plan check fees collected in Q2-2015 totaled $269,000 and include revenues related to several commercial and residential projects including a 5 building Mini Storage in the Lea Hill area, the Merrill Gardens Senior Living development, as well as plans for the Sonata Hill and Edgeview housing developments. $0.0 $0.2 $0.4 $0.6 $0.8 $1.0 $1.2 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Mi l l i o n s Development Service Fees 2015 YTD Budget 2015 YTD Actual 2014 Actual 14 Quarterly Financial Report Through Q2-2015 Culture and recreation revenues totaled $1.2 million and compare to a budget of $1.0 million and prior year collections of $1.1 million. The year-over-year increase in revenues was primarily due to increased collections at the Auburn Golf Course for greens fees, as well as increased revenues collected for league 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 $2.4 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Mi l l i o n s Culture & Recreation 2015 YTD Budget 2015 YTD Actual 2014 Actual 2014 2015 2015 Revenue Actual Budget Actual Amount Amount General Government 64,122$ 50,900$ 43,704$ $ (20,419)(31.8)% $ (7,196)(14.1)% Public Safety 287,781 297,432 287,517 (264)(0.1)%(9,915)(3.3)% Development Services 638,333 401,000 715,082 76,750 12.0 %314,082 78.3 % Culture & Recreation 1,110,564 1,032,600 1,236,235 125,671 11.3 %203,635 19.7 % YTD Total 2,100,800$ 1,781,932$ 2,282,538$ 181,738$ 8.7 % $ 500,606 28.1 % June-2015 Charges for Services by Type 2015 vs. 2014 Actual 2015 vs. Budget Percentage Percentage 15 Quarterly Financial Report Through Q2-2015 Fines & Penalties include traffic and parking infraction penalties, 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 Q2-2015 totaled $486,000, compared to a budget of $415,000 and prior year collections of $759,000. Effective June 2014, the Redflex Photo Enforcement Program was cancelled, which is the contributing factor for the year-over-year decline in fines and forfeits revenue. 2014 2015 2015 Month Actual Budget Actual Amount Amount Civil Penalties 8,469$ 8,200$ 6,069$ $ (2,400)(28.3)% $ (2,131)(26.0)% Civil Infraction Penalties 254,404 235,400 273,741 19,337 7.6 %38,341 16.3 % Redflex Photo Enforcement 309,868 0 1,766 (308,102)(99.4)%1,766 N/A % Parking Infractions 61,504 56,000 67,867 6,363 10.3 %11,867 21.2 % Criminal Traffic Misdemeanor 27,942 26,900 29,317 1,374 4.9 %2,417 9.0 % Criminal Non-Traffic Fines 22,893 24,500 25,129 2,237 9.8 %629 2.6 % Criminal Costs 27,585 21,300 30,829 3,244 11.8 %9,529 44.7 % Non-Court Fines & Penalties 46,141 42,400 51,259 5,117 11.1 %8,859 20.9 % YTD Total 758,806$ 414,700$ 485,978$ $ (272,828)(36.0)% $ 71,278 17.2 % June-2015 Fines & Forfeits by Type 2015 vs. 2014 Actual 2015 vs. Budget Percentage Percentage $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 Mi l l i o n s Fines & Penalties 2015 YTD Budget 2015 YTD Actual 2014 Actual 16 Quarterly Financial Report Through Q2-2015 Miscellaneous revenues primarily consist of income from facility rentals; other sources within this category include investment earnings, contributions & donations and other miscellaneous income including the quarterly purchasing card (P-card) rebate monies. Total revenues collected in this category through Q2-2015 totaled $448,000 and exceeded budget expectation of $389,000. Although rents and leases revenue ended the quarter slightly below budget expectations, this was offset by higher than anticipated P-Card rebate monies collected through Q2. 2014 2015 2015 Month Actual Budget Actual Amount Amount Interest & Investments 18,714$ 17,900$ 23,497$ 4,783$ 25.6 %5,597$ 31.3 % Rents & Leases 371,808 308,500 301,118 (70,690)(19.0)%(7,382)(2.4)% Contributions & Donations 25,789 16,200 20,852 (4,937)(19.1)%4,652 28.7 % Other Miscellaneous Revenue 68,888 46,700 102,512 33,624 48.8 %55,812 119.5 % YTD Total 485,200$ 389,300$ 447,979$ (37,220)$ (7.7)%58,679$ 15.1 % Miscellaneous Revenues by Type June-2015 2015 vs. 2014 2015 vs. Budget Percentage Percentage 17 Quarterly Financial Report Through Q2-2015 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 Q2-2015 totaled $2.8 million, compared to budget expectation of $661,000. REET revenues collected in Q2-2015 totaled $1.2 million compared to $669,000 collected in Q2-2014. Real estate sales in the City of Auburn this quarter included the sale of several warehouse properties, vacant land, the sale of the Multiplex Theatre at the Outlet Collection – Seattle, as well as the sale of over 350 single family residences. Effective in the Q3-2015 Financial Report, the REET budget will increase from $1.6 million to $3.0 million per Budget Amendment #2, which was approved by Council in July 2015. 2014 2015 2015 Month Actual Budget Actual Amount Amount Jan 119,765$ 79,300$ 125,089 5,324$ 4.4 %45,789$ 57.7 % Feb 208,206 107,300 115,287 (92,919)(44.6)%7,987 7.4 % Mar 118,578 89,000 1,394,226 1,275,648 1075.8 %1,305,226 1466.5 % Apr 189,771 106,800 423,394 233,624 123.1 %316,594 296.4 % May 243,472 138,100 345,489 102,017 41.9 %207,389 150.2 % Jun 236,067 140,500 436,101 200,033 84.7 %295,601 210.4 % Jul 305,214 194,800 0 (305,214)(100.0)%(194,800)######% Aug 263,573 157,800 0 (263,573)(100.0)%(157,800)######% Sep 182,829 124,500 0 (182,829)(100.0)%(124,500)######% Oct 163,912 144,600 0 (163,912)(100.0)%(144,600)######% Nov 259,026 185,900 0 (259,026)(100.0)%(185,900)######% Dec 183,799 131,400 0 (183,799)(100.0)%(131,400)######% YTD Total 1,115,859$ 661,000$ 2,839,586$ 1,723,727$ 154.5 %2,178,586$ 329.6 % Percentage 2015 vs. 2014 2015 vs. Budget Percentage Real Estate Excise Tax Revenues June-2015 $0.0 $0.5 $1.0 $1.5 $2.0 $2.5 $3.0 $3.5 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Mi l l i o n s Real Estate Excise Tax 2015 YTD Budget 2015 YTD Actual 2014 Actual 18 Quarterly Financial Report Through Q2-2015 Pet Licensing Year-to-date, 2,563 pet licenses have been sold resulting in $73,605 in revenue. For the same period in 2014, 3,063 licenses were sold resulting in $76,930 in revenue. 2015 Budget Goal: $240,000 or more 2015 Revenue = $73,605 2014 Revenue = $76,930 2015 Licenses Sold = 2,563 2014 Licenses Sold = 3,063 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 Q2-2015 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 Q2-2015 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 second quarter, the Water Utility had operating income of $110,400 compared to operating income of $273,800 in 2014. The Sewer Utility ended the quarter with an operating loss of $17,000 compared to operating income of $81,000 in 2014. The Sewer-Metro Utility ended the period with an operating loss of $174,000 compared to operating income of $1,303,100 for the previous year. The difference is largely due to the timing of the June 2014 payment to King County Metro ($1.2 million), which was not posted until July, resulting in a temporary spike in net income. The Stormwater Utility ended the quarter with $692,300 in operating income which compares to operating income of $759,200 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 $1,600 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec CC F Th o u s a n d s Water Revenues vs Water Sold 2015 vs 2014 2014 Water Sales ($) 2015 Water Sales ($) 2014 Water Sold (ccf) 2015 Water Sold (ccf) 21 Quarterly Financial Report Through Q2-2015 The Cemetery Fund ended the second quarter with operating income of $68,200 compared to an operating loss of $28,000 for the same period last year. Year to date the number of interments at the Cemetery totals 110 (55 burials, 55 cremations), which compares to 116 (54 burials, 62 cremations) for the same period last year. $0 $20 $40 $60 $80 $100 $120 $140 $160 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 2015 vs 2014 2015 Bud. Revenue 2015 Act. Revenue 2014 Act. Revenue 2015 Act. Expenses $0 $200 $400 $600 $800 $1,000 $1,200 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Th o u s a n d s Cumulative Cemetery Revenues & Expenditures 2015 vs 2014 2015 YTD Bud. Revenue 2015 YTD Act. Revenue 2014 YTD Act. Revenue 2015 YTD Act. Expenses 22 Quarterly Financial Report Through Q2-2015 Internal Service Funds Operating expenditures within the Insurance Fund represent the premium cost pool that will be allocated monthly to other City funds over the course of 2015. As a result, this balance will gradually diminish each month throughout the year. No significant variances are reported in the Worker’s Compensation, Facilities, Innovation & Technology, or Equipment Rental Funds. All funds have sufficient revenues to cover year-to-date expenditures. Contact Information This report is prepared by the Finance Department. Additional financial information can also be viewed at our website: http://www.auburnwa.gov/. For any questions about this report please contact Shelley Coleman at scoleman@auburnwa.gov. 23 Investment Purchase Purchase Maturity Yield to Type Date Price Date Maturity State Investment Pool Various 102,070,333$ Various 0.17% KeyBank Money Market Various 18,275,186 Various 0.00% US Treasury 05/04/1990 57,750 05/15/2016 5.72% FHLB 1/15/2015 1,300,000 7/28/2017 0.89% LAKUTL 9/25/2013 235,919 11/1/2017 1.90% Total Cash & Investments 121,939,187$ 0.157% Investment Mix % of Total State Investment Pool 83.7%Current 6-month treasury rate 0.09% KeyBank Money Market 15.0%Current State Pool rate 0.17% US Treasury 0.0%KeyBank Money Market 0.00% FFCB 0.0%Blended Auburn rate 0.16% FHLB 1.1% LAKUTL 0.2% 100.0% City of Auburn Investment Portfolio Summary June 30, 2015 Summary 24 SALES TAX SUMMARY JUNE 2015 SALES TAX DISTRIBUTIONS (FOR APRIL 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 - Apr '14)(Nov '14 - Apr '15)% Diff NAICS AUTOMOTIVE (Nov '13-Oct '14)(Nov '13 - Apr '14)(Nov '14 - Apr '15)% Diff 236 Construction of Buildings 866,060 427,371 542,316 26.9%441 Motor Vehicle and Parts Dealer 3,062,768 b 1,422,563 1,663,157 16.9%237 Heavy and Civil Construction 146,261 77,101 97,491 26.4%447 Gasoline Stations 246,636 124,420 114,938 -7.6% 238 Specialty Trade Contractors 741,211 354,375 357,077 0.8%TOTAL AUTOMOTIVE 3,309,404 1,546,982 1,778,094 14.9% TOTAL CONSTRUCTION 1,753,532 858,847 996,884 16.1%Overall Change from Previous Year 231,112 Overall Change from Previous Year 138,037 2014 Annual Total 2014 YTD 2015 YTD YTD2014 Annual Total 2014 YTD 2015 YTD YTD NAICS RETAIL TRADE (Nov '13-Oct '14)(Nov '13 - Apr '14)(Nov '14 - Apr '15)% Diff NAICS MANUFACTURING (Nov '13-Oct '14)(Nov '13 - Apr '14)(Nov '14 - Apr '15)% Diff 442 Furniture and Home Furnishings 254,103 122,466 125,079 2.1% 311 Food Manufacturing 3,220 1,890 1,369 -27.6%443 Electronics and Appliances 236,955 151,747 154,707 2.0% 312 Beverage and Tobacco Products 8,257 4,216 4,883 15.8%444 Building Material and Garden 502,470 218,815 263,434 20.4% 313 Textile Mills 234 163 117 -28.2%445 Food and Beverage Stores 352,552 165,897 176,816 6.6% 314 Textile Product Mills 2,970 1,411 1,448 2.6%446 Health and Personal Care Store 187,715 95,263 110,685 f 16.2% 315 Apparel Manufacturing 244 185 81 -56.1%448 Clothing and Accessories 1,008,978 504,835 540,406 7.0% 316 Leather and Allied Products 15 4 1 -69.0%451 Sporting Goods, Hobby, Books 212,015 118,600 111,217 -6.2% 321 Wood Product Manufacturing 76,560 38,502 33,888 -12.0%452 General Merchandise Stores 955,479 476,544 a 486,493 2.1% 322 Paper Manufacturing 5,237 2,478 3,210 29.5%453 Miscellaneous Store Retailers 587,784 282,461 315,841 11.8% 323 Printing and Related Support 44,114 17,200 27,398 59.3%454 Nonstore Retailers 381,876 179,055 199,273 11.3% 324 Petroleum and Coal Products 10,293 5,136 1,415 -72.4%TOTAL RETAIL TRADE 4,679,929 2,315,684 2,483,952 7.3% 325 Chemical Manufacturing 5,397 2,614 3,192 22.1%Overall Change from Previous Year 168,268 326 Plastics and Rubber Products 9,844 5,335 5,315 -0.4% 327 Nonmetallic Mineral Products 19,801 9,771 3,477 e -64.4% 331 Primary Metal Manufacturing 1,542 1,339 1,376 2.7%2014 Annual Total 2014 YTD 2015 YTD YTD 332 Fabricated Metal Product Manuf 33,900 15,287 15,214 -0.5%NAICS SERVICES (Nov '13-Oct '14)(Nov '13 - Apr '14)(Nov '14 - Apr '15)% Diff 333 Machinery Manufacturing 24,491 11,199 12,953 15.7%51*Information 486,856 247,912 244,720 d, i -1.3% 334 Computer and Electronic Product 18,265 10,873 3,642 -66.5%52*Finance and Insurance 87,574 42,233 46,666 10.5% 335 Electric Equipment, Appliances 1,179 562 476 -15.4%53*Real Estate, Rental, Leasing 314,900 153,382 160,421 4.6% 336 Transportation Equipment Man 837,227 415,649 284,243 -31.6%541 Professional, Scientific, Tech 216,494 98,685 98,469 -0.2% 337 Furniture and Related Products 21,248 11,535 7,954 -31.0%551 Company Management 43 26 9,215 35423.6% 339 Miscellaneous Manufacturing 39,052 20,876 24,542 17.6%56*Admin. Supp., Remed Svcs 350,417 191,835 155,861 -18.8%TOTAL MANUFACTURING 1,163,090 576,227 436,192 -24.3%611 Educational Services 49,123 21,939 34,762 g 58.5% Overall Change from Previous Year -140,034 62*Health Care Social Assistance 66,359 15,668 51,067 225.9% 71*Arts and Entertainment 157,908 99,398 91,709 -7.7%72*Accommodation and Food Svcs 1,066,580 500,085 546,677 9.3% 2014 Annual Total 2014 YTD 2015 YTD YTD 81*Other Services 425,896 203,891 228,313 h 12.0% NAICS TRANSPORTATION AND WAREHOUSING (Nov '13-Oct '14)(Nov '13 - Apr '14)(Nov '14 - Apr '15)% Diff 92*Public Administration 99,676 45,019 60,340 34.0% 481 Air Transportation 0 0 0 N/A TOTAL SERVICES 3,321,827 1,620,072 1,728,219 6.7% 482 Rail Transportation 8,069 2,215 4,472 101.9%Overall Change from Previous Year 108,146 484 Truck Transportation 4,740 1,751 3,540 102.2% 485 Transit and Ground Passengers 4 0 146 N/A488Transportation Support 26,786 12,818 13,655 6.5%2014 Annual Total 2014 YTD 2015 YTD YTD 491 Postal Service 691 483 137 -71.7%NAICS MISCELLANEOUS (Nov '13-Oct '14)(Nov '13 - Apr '14)(Nov '14 - Apr '15)% Diff 492 Couriers and Messengers 672 422 1 -99.7%000 Unknown 0 0 0 N/A 493 Warehousing and Storage 29,718 c 1,961 6,146 213.4%111-115 Agriculture, Forestry, Fishing 7,488 2,230 1,897 -14.9% TOTAL TRANSPORTATION 70,679 19,651 28,097 43.0%211-221 Mining & Utilities 28,687 9,734 10,295 5.8% Overall Change from Previous Year 8,446 999 Unclassifiable Establishments 83,442 63,579 18,776 -70.5% TOTAL SERVICES 119,617 75,543 30,968 -59.0% Overall Change from Previous Year -44,575 2014 Annual Total 2014 YTD 2015 YTD YTDNAICSWHOLESALE TRADE (Nov '13-Oct '14)(Nov '13 - Apr '14)(Nov '14 - Apr '15)% Diff 423 Wholesale Trade, Durable Goods 1,024,016 499,126 513,620 2.9%GRAND TOTAL 15,622,791 7,596,196 8,091,609 424 Wholesale Trade, Nondurable 178,054 82,581 94,522 14.5%Overall Change from Previous Year 495,413 6.5% 425 Wholesale Electronic Markets 2,643 1,483 1,061 -28.5% TOTAL WHOLESALE 1,204,714 583,189 609,203 4.5% Overall Change from Previous Year 26,014 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 January 2015 (adjustment: $4,464). g. WA State Dept of Revenue audit adjustment to sales tax returns for period February 2015 (adjustment: $11,845). h. WA State Dept of Revenue audit adjustment to sales tax returns for period February 2015 (adjustment: -$9,355). i. WA State Dept of Revenue audit adjustment to sales tax returns for period March 2015 (adjustment: -$17,839). 06/26/15 Prepared by Auburn Finance Department 25 INNOVATION EQUIPMENT & TECHNOLOGY RENTAL OPERATING REVENUES Charges For Service 5,878,656$ 3,892,188$ -$ 4,607,516$ 6,700,044$ 8,143$ 591,201$ -$ 387,527$ -$ -$ -$ Interfund Charges For Service - - - - - - - - - 1,723,644 2,677,391 1,735,388 Sewer Metro Service Revenue - - 7,821,868 - - - - - - - - - Rents, Leases, Concessions, & Other - - - - - 330,841 - - - 42,145 69,869 - TOTAL OPERATING REVENUES 5,878,656$ 3,892,188$ 7,821,868$ 4,607,516$ 6,700,044$ 338,983$ 591,201$ -$ 387,527$ 1,765,789$ 2,747,260$ 1,735,388$ OPERATING EXPENSES Salaries & Wages 1,226,317$ 812,738$ -$ 1,178,146$ 198,859$ 13,571$ 217,744$ -$ 39,662$ 278,394$ 731,034$ 309,802$ Benefits 560,287 371,002 - 533,421 91,506 4,886 101,376 - 82,386 141,825 305,931 143,252 Supplies 120,058 58,283 - 29,605 20,724 - 93,908 - - 56,207 166,440 462,223 Other Service Charges 1,732,241 1,107,819 - 605,151 579,536 218,476 51,558 592,373 129,296 534,638 1,268,369 149,381 Intergovernmental Services - 2,847 - 62,150 105,361 - - - - - - - Waste Management Payments 1 - - - - 5,124,744 - - - - - - - Sewer Metro Services - - 7,995,845 - - - - - - - - - Interfund Operating Rentals & Supplies 645,437 485,398 - 667,967 52,469 - 32,730 - - 57,408 81,078 108,514 Other Expenses - - - - - - - - - - - - Depreciation & Amortization 1,483,901 1,071,104 - 838,732 9,410 237,956 25,719 - - - 309,120 437,546 TOTAL OPERATING EXPENSES 5,768,241$ 3,909,191$ 7,995,845$ 3,915,172$ 6,182,609$ 474,889$ 523,035$ 592,373$ 251,344$ 1,068,472$ 2,861,973$ 1,610,718$ OPERATING INCOME (LOSS)110,414$ (17,003)$ (173,977)$ 692,344$ 517,435$ (135,906)$ 68,167$ (592,373)$ 136,183$ 697,317$ (114,712)$ 124,670$ NON-OPERATING REVENUES & EXPENSES Interest Revenue 10,081$ 8,910$ 563$ 13,271$ 1,585$ 583$ 279$ 579$ 327$ 1,644$ 2,319$ 3,826$ Contributions - - - 1,059,017 29,245 7,105 150 - - - - 816 Other Non-Operating Revenue 94,352 36,137 - 32,596 280 (5,252) (0) - - - 500 96,294 Gain (Loss) On Sale Of Fixed Assets - - - 10,000 - - - - - - - (27,929) Debt Service Interest (49,854) (16,217) - - - (18,338) (11,134) - - - - - Other Non-Operating Expense - - - - - - - - - - - - TOTAL NON-OPERATING REVENUES & EXPENSES 54,580$ 28,830$ 563$ 1,114,885$ 31,110$ (15,902)$ (10,705)$ 579$ 327$ 1,644$ 2,819$ 73,007$ PLUS ITEMS NOT AFFECTING WORKING CAPITAL Depreciation 1,483,901$ 1,071,104$ -$ 838,732$ 9,410$ 237,956$ 25,719$ -$ -$ -$ 309,120$ 437,546$ NET WORKING CAPITAL FROM OPERATIONS 1,648,896$ 1,082,932$ (173,414)$ 2,645,961$ 557,955$ 86,148$ 83,180$ (591,794)$ 136,510$ 698,961$ 197,226$ 635,223$ Increase In Contributions - System Development 349,330$ 280,350$ -$ 261,694$ -$ -$ -$ -$ -$ -$ -$ -$ 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 68,973 - - - - - - - - - - - Operating Transfers In - - - 378,345 - - - - - - - - Increase In Restricted Net Assets 20,744 - - - - 3,732 - - - - - - Decrease In Long-Term Receivables - 45,000 - - - - - - - - - - Increase In Deferred Credits - - - - - 15,219 - - - - - - TOTAL RESOURCES OTHER THAN OPERATIONS 439,547$ 332,242$ -$ 640,039$ -$ 18,951$ -$ -$ -$ -$ -$ -$ Net Change In Restricted Net Assets 420,668$ 137,976$ -$ 192,316$ -$ 2,448$ -$ -$ -$ -$ -$ (43,864)$ Increase In Fixed Assets - Salaries 150,677 74,672 - 160,580 - - - - - - - - Increase In Fixed Assets - Benefits 61,788 32,366 - 66,350 - - - - - - - - Increase In Fixed Assets - Site Improvements 26,051 - - - - - - - - - - - Increase In Fixed Assets - Land - - - 250,000 - - - - - - - - Increase In Fixed Assets - Equipment - - - - - - - - - - 257,702 518,286 Increase In Fixed Assets - Construction 1,540,650 1,396,757 - 3,064,836 - 286,454 - - - - - - Increase In Fixed Assets - Other - - - - - - - - - - - - Operating Transfers Out 154,033 144,892 - 124,000 - - - - - 290,229 - 179,420 Debt Service Principal 522,831 288,262 - - - - - - - - - - TOTAL USES OTHER THAN OPERATIONS 2,876,698$ 2,074,925$ -$ 3,858,082$ -$ 288,902$ -$ -$ -$ 290,229$ 257,702$ 653,842$ NET CHANGE IN WORKING CAPITAL (788,255)$ (659,751)$ (173,414)$ (572,082)$ 557,955$ (183,803)$ 83,180$ (591,794)$ 136,510$ 408,732$ (60,475)$ (18,618)$ BEGINNING WORKING CAPITAL - January 1, 2015 2 14,027,406 13,346,282 2,100,400 16,051,080 2,491,724 756,938 294,547 1,654,057 440,004 2,194,912 3,543,327 5,844,690 ENDING WORKING CAPITAL - June 30, 2015 13,239,150 12,686,531 1,926,986 15,478,999 3,049,679 573,135 377,727 1,062,263 576,514 2,603,644 3,482,852 5,826,072 NET CHANGE IN WORKING CAPITAL (788,255)$ (659,751)$ (173,414)$ (572,082)$ 557,955$ (183,803)$ 83,180$ (591,794)$ 136,510$ 408,732$ (60,475)$ (18,618)$ 1 June's Waste Management payment in the amount of $844,060 has been added to the Solid Waste Fund and is reflected in the Ending Working Capital balance. 2 The Airport Fund's Beginning Working Capital has been restated reflecting a prior period adjustment of $200,000 as the result of a reclassification of the Airport's interfund loan. The following table presents the Working Capital Statement for each of the City's Enterprise and Internal Service funds. Working Capital is generally defined as the difference between current assets and current liabilities. WORKING CAPITAL ENTERPRISE FUNDS INTERNAL SERVICE FUNDS WATER SEWER SEWER METRO STORM SOLID WASTE AIRPORT CEMETERY INSURANCE WORKER'S COMPENSATION FACILITIES 26 INNOVATION EQUIPMENT & TECHNOLOGY RENTAL OPERATING REVENUES Charges For Service 5,878,656$ 3,892,188$ -$ 4,607,516$ 6,700,044$ 8,143$ 591,201$ -$ 387,527$ -$ -$ -$ Interfund Charges For Service - - - - - - - - - 1,723,644 2,677,391 1,735,388 Sewer Metro Service Revenue - - 7,821,868 - - - - - - - - - Rents, Leases, Concessions, & Other - - - - - 330,841 - - - 42,145 69,869 - TOTAL OPERATING REVENUES 5,878,656$ 3,892,188$ 7,821,868$ 4,607,516$ 6,700,044$ 338,983$ 591,201$ -$ 387,527$ 1,765,789$ 2,747,260$ 1,735,388$ OPERATING EXPENSES Administration 1,414,096$ 1,100,459$ -$ 1,599,032$ 321,107$ 231,461$ 130,376$ 592,373$ -$ -$ -$ 370,163$ Operations & Maintenance 2,870,244 1,737,628 - 1,477,408 727,348 5,472 366,940 - 251,344 1,068,472 2,552,852 803,009 Waste Management Payments 1 - - - - 5,124,744 - - - - - - - Sewer Metro Services - - 7,995,845 - - - - - - - - - Depreciation & Amortization 1,483,901 1,071,104 - 838,732 9,410 237,956 25,719 - - - 309,120 437,546 TOTAL OPERATING EXPENSES 5,768,241$ 3,909,191$ 7,995,845$ 3,915,172$ 6,182,609$ 474,889$ 523,035$ 592,373$ 251,344$ 1,068,472$ 2,861,973$ 1,610,718$ OPERATING INCOME (LOSS)110,414$ (17,003)$ (173,977)$ 692,344$ 517,435$ (135,906)$ 68,167$ (592,373)$ 136,183$ 697,317$ (114,712)$ 124,670$ NON-OPERATING REVENUES & EXPENSES Interest Revenue 10,081$ 8,910$ 563$ 13,271$ 1,585$ 583$ 279$ 579$ 327$ 1,644$ 2,319$ 3,826$ Other Non-Operating Revenue 94,352 36,137 - 1,091,613 29,525 1,853 150 - - - 500 97,111 Gain (Loss) On Sale Of Fixed Assets - - - 10,000 - - - - - - - (27,929) Other Non-Operating Expense (49,854) (16,217) - - - (18,338) (11,134) - - - - - TOTAL NON-OPERATING REVENUES & EXPENSES 54,580$ 28,830$ 563$ 1,114,885$ 31,110$ (15,902)$ (10,705)$ 579$ 327$ 1,644$ 2,819$ 73,007$ 164,994$ 11,828$ (173,414)$ 1,807,229$ 548,545$ (151,808)$ 57,461$ (591,794)$ 136,510$ 698,961$ (111,894)$ 197,677$ Contributions 349,830$ 287,242$ -$ 261,694$ -$ -$ -$ -$ -$ -$ -$ -$ Transfers In - - - 378,345 - - - - - - - - Transfers Out (154,033) (144,892) - (124,000) - - - - - (290,229) - (179,420) TOTAL CONTRIBUTIONS & TRANSFERS 195,797$ 142,350$ -$ 516,039$ -$ -$ -$ -$ -$ (290,229)$ -$ (179,420)$ CHANGE IN FUND BALANCE 360,791$ 154,177$ (173,414)$ 2,323,268$ 548,545$ (151,808)$ 57,461$ (591,794)$ 136,510$ 408,732$ (111,894)$ 18,258$ BEGINNING FUND BALANCE - January 1, 2015 71,320,494$ 78,284,418$ 2,100,400$ 55,862,809$ 2,560,449$ 9,662,547$ 870,261$ 1,654,057$ 434,859$ 2,152,736$ 4,826,830$ 10,864,439$ ENDING FUND BALANCE - June 30, 2015 71,681,285$ 78,438,595$ 1,926,986$ 58,186,078$ 3,108,994$ 9,510,739$ 927,722$ 1,062,263$ 571,369$ 2,561,468$ 4,714,936$ 10,882,696$ 1 June's Waste Management payment in the amount of $844,060 has been added to the Solid Waste Fund and is reflected in Ending Fund Balance. INCOME (LOSS) BEFORE CONTRIBUTIONS & TRANSFERS The following table provides an analysis of each of the City's Enterprise and Internal Service funds - showing 2015 revenues and expenditures by fund. FUND BALANCE ENTERPRISE FUNDS INTERNAL SERVICE FUNDS WATER SEWER SEWER METRO STORM SOLID WASTE AIRPORT CEMETERY INSURANCE WORKER'S COMPENSATION FACILITIES 27