HomeMy WebLinkAbout2010 CAFR-GFOA electronic
2010 Comprehensive Annual Financial Report for the y year ended december 31, 2010
CITY OF AUBURN WASHINGTON COMPREHENSIVE ANNUAL FINANCIAL REPORT Fiscal Year January 1, 2010 through December 31, 2010 Prepared by Finance Department Shelley Coleman, Finance Director
CITY OF AUBURN: 2010 CAFR TABLE OF CONTENTS COMPREHENSIVE ANNUAL FINANCIAL REPORT For the Year Ended December 31, 2010 TABLE OF CONTENTS I. INTRODUCTORY SECTION Page Title Page Table
of Contents .................................................................................................................................. i City Officials .......................................
.................................................................................................1 Organizational Chart (City and Council Committees) .................................................
...........................2 Letter of Transmittal ...............................................................................................................................3 Certificate
of Achievement ....................................................................................................................11 II. FINANCIAL SECTION Auditor’s Report...........................
.........................................................................................................13 Management’s Discussion and Analysis.......................................................
........................................15 Basic Financial Statements Government-wide Financial Statements: Statement of Fund Net Assets ..............................................................
...................................35 Statement of Activities..............................................................................................................36 Fund Financial
Statements: Balance Sheet – Governmental Funds ....................................................................................39 Statement of Revenues, Expenses and Changes in Fund
Balance – Governmental Funds ...................................................................................40 Reconciliation of the Statement of Revenues, Expenditures, and Changes
in Fund Balances of Government Funds to the Statement of Activities ....................................41 Schedule of Revenues, Expenses and Changes in Fund Balance – Budget and Actual:
General Fund ........................................................................................................................42 Arterial Street Fund...........................................
....................................................................43 Statement of Fund Net Assets – Proprietary Funds ................................................................46
Statement of Revenues, Expenses, and Changes in Fund Net Assets – Proprietary Funds....................................................................................47 Statement of
Cash Flows – Proprietary Funds ........................................................................48 Statement of Fiduciary Net Assets – Fiduciary Funds .........................................
....................52 Statement of Changes in Fiduciary Net Assets – Fiduciary Funds..........................................53 Notes to the Financial Statements ...................................
...........................................................55 Combining and Individual Fund Financial Statements and Schedules: Combining Balance Sheet – Non-Major Government Funds ..................
...................................102 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances – Non-Major Government Funds .......................................................
.........103 Combining Balance Sheet – Non-Major Special Revenue Funds..............................................106 Combining Statement of Revenues, Expenditures, and Changes in
Fund Balances – Non-Major Special Revenue Funds.........................................................108 Schedules of Revenues, Expenditures, and Changes in Fund Balances – Budget
and Actual: Local Street Special Revenue Fund........................................................................................110 Hotel/Motel Tax Special Revenue Fund..........................
........................................................111 i
CITY OF AUBURN: 2010 CAFR TABLE OF CONTENTS ii Schedules of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual: (continued) Page Arterial Street Preservation Special
Revenue Fund.........................................................112 Drug Forfeiture Special Revenue Fund............................................................................113
Local Law Enforcement Grant Special Revenue Fund .................................................... 114 Housing & Community Development Special Revenue Fund.........................................
.115 Recreation Trails Special Revenue Fund.........................................................................116 Business Improvement Area Special Revenue Fund.................................
......................117 Cumulative Reserve Special Revenue Fund....................................................................118 Mitigation Special Revenue Fund...............................
......................................................119 Combining Balance Sheet – Non-Major Debt Service Funds.................................................122 Combining Statement
of Revenues, Expenditures, and Changes in Fund Balance – Non-Major Debt Service Funds.............................................................. 123 Balance Sheet – Capital Project
Fund....................................................................................126 Statement of Revenues, Expenditures, and Changes in Fund Balances – Capital Project Fund...................
.......................................................... 127 Balance Sheet – Permanent Fund..........................................................................................130
Statement of Revenues, Expenditures and Changes in Fund Balance – Permanent Fund...............................................................................................................131
Combining Statement of Fund Net Assets – Non-Major Enterprise Funds ............................ 134 Combining Statement of Revenues, Expenses, and Changes in Fund Net Assets – Non-Major
Enterprise Funds....................................................................... 135 Combining Statement of Cash Flows – Non-Major Enterprise Funds ....................................
136 Combining Statements of Fund Net Assets – Internal Service Funds....................................140 Combining Statement of Revenues, Expenses, and Changes in Fund Net Assets
– Internal Service Funds....................................................................... 141 Combining Statement of Cash Flows – Internal Service Funds ........................................
..... 142 Statement of Changes in Assets and Liabilities – Agency Fund ............................................ 146 III. STATISTICAL SECTION Schedule Net Assets by Components ....................
........................................................................1 ............ 148 Changes in Net Assets ......................................................................................
.............2 ............ 149 Fund Balances, Government Funds...............................................................................3 ............ 150 Changes in Fund Balances,
Government Funds ...........................................................4 ............ 151 Tax Revenues by Source, Government Funds ..............................................................5
............ 152 Assessed Value by Type ................................................................................................6 ............ 153 Property Tax Data...........................
................................................................................7 ............ 154 Property Tax Levies and Collections.................................................................
.............8 ............156 Principal Taxpayers – Property Taxes ...........................................................................9 ............157 Retail Tax Collections
by Sector...................................................................................10 ............ 158 Ratios of Outstanding Debt by Type.....................................................
........................11 ............159 Computation of Legal Debt Margin...............................................................................12 ............160 Legal Debt
Margin Ratios .............................................................................................13 ............ 160 Computation of Net Direct and Estimated Overlapping Debt................
.......................14 ............ 161 Ratio of Net General Bonded Debt to Assessed Value................................................15 ............ 162 Pledged Revenue Bond
Coverages .............................................................................16 ............ 163 Population, Income and Housing Trends ......................................................
...............17 ............ 164 Major Employers...........................................................................................................18 ............ 165 Staffing
Levels by Department .....................................................................................19 ............ 166 Operating Indicators by Department ......................................
......................................20 ............167 Capital Asset Indicators by Department .......................................................................21 ............
168
CITY OFFICIALS MAYOR Pete Lewis CITY COUNCIL Nancy Backus Virginia Haugen Lynn Norman John Partridge Bill Peloza Sue Singer Rich Wagner DEPARTMENT DIRECTORS Finance Director Shelley
Coleman City Attorney Dan Heid Human Resources Director Brenda Heineman Information Services Director Lorrie Rempher Parks Director Daryl Faber Planning Director Kevin Snyder Police
Chief Bob Lee Public Works Director Dennis Dowdy 1
Nancy Backus, Chairperson Lynn Norman, Vice Chair Rich Wagner Bill Peloza, Chairperson Sue Singer, Vice Chair John Partridge Lynn Norman, Chairperson Nancy Backus, Vice Chair John Partridge
Rich Wagner, Chairperson Bill Peloza, Vice Chair Virginia Haugen 2
June 20, 2011 Honorable Peter Lewis, Mayor Members of the Auburn City Council Citizens of the City of Auburn 25 W Main Street Auburn, WA 98001 We are pleased to present the City’s Comprehensive
Annual Financial Report for the year ended December 31, 2010. We publish this financial statement in conformity with generally accepted accounting principles (GAAP). It has been audited
in accordance with generally accepted auditing standards by the Washington State Auditor’s Office. Therefore, we issue and transmit to you the City of Auburn’s Comprehensive Annual Financial
Report (CAFR) for the fiscal year ended December 31, 2010. This transmittal letter provides an overview of the report and the financial condition of the City. It also provides insight
into the history of the City and the economic conditions affecting it, and describes the systems and controls employed by the Finance department. The Comprehensive Annual Financial Report
has several significant uses. First, it provides a general overview of the City’s finances to the general public and taxpayers. Second, it is referenced by bond buyers and rating agencies
to evaluate the City’s fiscal stability and creditworthiness. Finally, the CAFR is a series of financial statements that have been audited by the State Auditor’s Office and provides
assurances that assets are safeguarded and funds are expended as they were legally appropriated in the biennial budget. I. INTRODUCTION A. MANAGEMENT REPRESENTATION The Auburn Finance
Department prepared the report and accepts complete responsibility for the accuracy, completeness, and fairness of presentation of the information included. The data is believed to be
accurate in all material respects, and it is believed that all significant information necessary for an understanding of the affairs and financial condition of the City has been disclosed.
The report has been prepared in conformance with generally accepted accounting principals and in conformance with financial reporting standards issued by the Governmental Accounting
Standards Board (GASB). City management has developed and evaluated a comprehensive internal control structure that is designed to protect the City’s assets from loss, theft, or misuse
and to compile sufficient reliable information for the preparation of the City’s financial statements in conformity with generally accepted accounting principles. Because the cost of
internal controls should not outweigh the benefits, the City’s internal control structure is designed to provide reasonable, rather than absolute, assurance that the financial statements
will be free from material misstatement. As management, we attest that, to the best of our knowledge and belief, this financial report is complete and reliable in all material aspects.
3
CITY OF AUBURN: 2010 CAFR LETTER OF TRANSMITTAL As a recipient of federal, state and county financial assistance the City is required to undergo an annual single audit in conformity
with U.S. Office of Management and Budget Circular A-133, Audits of State and Local Governments. The audit is conducted by the State Auditor’s Office in conjunction with the City’s annual
independent audit. The results of the City’s annual single audit for the fiscal year ended December 31, 2010 provided no instances of material weakness in the internal control structure
or significant violations of applicable laws. GAAP requires that management provide a narrative introduction, overview and analysis to accompany the basic financial statements in the
form of Management’s Discussion and Analysis (MD&A). This letter of transmittal is designed to complement the MD&A and should be read in conjunction with it. Auburn’s MD&A can be found
immediately following the independent auditor’s report. B. ORGANIZATION OF THE REPORT The report is divided into three sections: the Introductory Section, the Financial Section, and
the Statistical Section. The Introductory Section contains the table of contents, a list of the City’s principal officials, an organizational chart, this letter of transmittal, and the
Certificate of Achievement for Excellence in Financial Reporting from the Government Finance Officers’ Association of the United States and Canada for the 2009 CAFR. The Financial Section
contains the Washington State Auditor’s Report, completed by the Washington State Auditor, Management’s Discussion and Analysis, Government-Wide Financial Statements, the Fund Financial
Statements, Notes to the Financial Statements and Other Required Combining and Supplemental Information. The Statistical Section, which is unaudited, contains a range of statistical
tables and charts that present various financial, economic, social, and demographic data about the City. This information depicts various trends that have affected the fiscal condition
of the City over the last ten years. The data presented in this section complies with the requirements of GASB Statement No. 44, Economic Condition Reporting: The Statistical Section.
C. REPORTING ENTITY The City of Auburn was incorporated in 1891 and currently operates as a non-charter Code City under the laws of the State of Washington. Code City status in Washington
provides “home rule” authority to cities. Auburn has a Mayor/Council form of government, the Mayor is elected and is the full-time Chief Administrator. The seven-member City Council
is elected at large, rather than by district. Members of the City Council are responsible for establishing the general direction and policies for the City and for providing the resources
necessary to carry out those policies. As the City’s chief administrator, the Mayor is responsible for carrying out the policy and direction set by the City Council. This includes the
enforcement of laws and ordinances, the execution of contracts and agreements, and maintenance of peace and order in the city. The City is located primarily in southern King County (county
seat, Seattle) and a small northeastern portion of Pierce County. These are the two most populous counties in the State of Washington, comprising over 41% of the state-wide population.
The City is strategically located in relation to the labor and consumer markets of the two largest cities in the area: Seattle in King County and Tacoma in Pierce County. Auburn currently
serves approximately 68,270 people within its incorporated limits. The City provides a wide range of services, both beneficial and necessary, to its residents as well as to the adjacent
area. These services include police protection; parks and recreational facilities that include a senior center, golf course and museum; land use management and development regulation;
infrastructure construction and maintenance; water, sanitary sewage collection, storm drainage, and solid waste services; a general aviation airport; and a municipal cemetery. The City
also has a municipal court and is a member/owner of Valley Communications providing emergency 911 services and South Correctional Entity providing jail facilities. Both these organizations
provide 4
CITY OF AUBURN: 2010 CAFR LETTER OF TRANSMITTAL services to other owner/member governments and other non owner/member governments as well through interlocal agreements. II. ECONOMIC
CONDITION A. SUMMARY OF LOCAL ECONOMY Auburn began as a small rural community based on agriculture and the railroad, which maintained a significant switching and repair facility. The
City has grown significantly since World War II, both as a residential community and as a commercial and industrial area. Auburn has become a significant area for automobile sales and
has also developed a substantial manufacturing and distribution base with the largest employer being The Boeing Co., which employs over 5,000 people in its Auburn facility. Boeing is
a worldwide supplier of aircraft and related products. The City’s assessed valuation in 2010, for 2011 property tax collection, was $7.544 billion. Auburn has enjoyed steady residential
and industrial growth over the years as development has moved outward from the major cities. The City currently has a growing array of manufacturing facilities, as well as distribution,
wholesaling, and retailing operations. Auburn Regional Medical Center, located in Auburn, serves the local geographic area and is a major trauma center of the northwest. The medical
center recently expanded and now also includes an oncology center. Auburn also has a significant retailing base, and in addition to maintaining its downtown core businesses, has attracted
significant retailers who have constructed major new facilities in Auburn in recent years. The SuperMall of the Great Northwest has increased the retail base as the area surrounding
the SuperMall continues to develop as well as the 277th Street business corridor. In addition, in the past 10 years Auburn has seen the development of a new YMCA, a new Justice Center,
downtown revitalization, White River Amphitheater, Washington National Golf Course, the commuter rail station and the new Safeway distribution center. Auburn has also been a center for
automobile sales for a number of years, drawing customers throughout the Puget Sound region. Since 2000 the City’s total assessed property valuation has more than doubled from $3.0 billion
to $7.5 billion. The sales tax receipts went from $13.4 million to $15.7 million in the same time period. The recent economic downturn, coupled with the impact of the Streamlined Sales
Tax (SST) legislation enacted by the State of Washington that went into effect July 1, 2008, has dropped sales tax revenues from their high in 2007 of $18.9 million to $15.7 million
in 2010. The SST eliminated approximately $250,000 a month of sales tax revenue to the City. The State of Washington has a mitigation plan for cities that are severely impacted by the
SST and the City of Auburn received approximately $2.0 million in mitigation payments in 2010. The 2011 State Legislature has reduced the payment by 3% for 2011 and 2012 and there is
no certainty that the mitigation payments will continue. While the City, similar to other municipalities in the region and nationally, has suffered during the recent economic recession,
the local economy is beginning to show some signs of improvement. Sales Tax revenue which constitutes approximately forty percent of the General Fund budget, increased to $15.7 million
(+6.3%) over the previous year. While the local economy is beginning to recover, the City remains vigilant in its management of expenses and to ensure it lives within its means. The
City’s staffing level totals 408 full-time equivalents (FTEs), the lowest it has been over the past 10 years and have froze 82.5 FTEs in 2009. These positions have now been removed from
the 2011 and 2012 biennial budget. Despite economic cycles, the City has continually focused on enhancing the quality of life in the community. For example, in recent years, through
strategically placed bond issues, special levies, successful grant procurements, and conservative operations, parks have been expanded, streets 5
CITY OF AUBURN: 2010 CAFR LETTER OF TRANSMITTAL improved, commercial and residential sidewalks have been upgraded, and buildings have been advantageously renovated to house a new senior
center and parks department. In 1997, the voters elected to annex to the King County Library System. The System completed construction of a new library in the City early in 2000 and
that library is now undergoing expansion and renovation which will now provide an improved access from Auburn Way South and additional parking. The City has renovated the former library
building into a Senior Center at the Les Gove Park campus. In 2003, the City was successful in negotiating the purchase of the former YMCA building located on this campus. The building
was demolished and site prepared for the future construction of a Community Center. The campus currently hosts the Library, White River Valley Museum, Parks and Recreation department
and Senior Center. Other recently completed projects within the downtown area include the Auburn Regional Medical Center campus expansion. The campus expansion includes an oncology center
and a 300 stall parking garage which is a public private partnership with the City where the City will own 147 of the stalls. Also completed is a new professional office building which
provides medical/professional office space, relocation of the Key Bank, and over 50,000 square feet of new space for the City Hall. This project is adjacent to the Medical Center project
and City Hall. More recently, the State Legislature identified the Auburn downtown redevelopment area as a demonstration area and the City has received $6.3 million in resources to finance
infrastructure improvements in the downtown area. These improvements include the South Division Street Promenade Project, City Hall Plaza projects, and other infrastructure improvements.
This revitalization trend is positive for the aging downtown core and is designed to integrate the existing downtown with the planned development area(s). Other factors continue to contribute
to the local economy. Emerald Downs, a major thoroughbred horseracing facility in Auburn, was constructed to replace Longacres – the area’s former racing facility located in Renton,
Washington. Emerald Downs also provides facilities for meetings, banquets and seminars. A major gambling facility is located on the Muckleshoot Indian Reservation in Auburn. This facility
has undergone several expansions within the past ten years which include a non-smoking facility, entertainment, and the addition of a 24-hour family restaurant. The Tribe opened the
White River Amphitheater, a 25,000 seat outdoor facility in 2003 and completed construction of a five-story parking garage in 2004 to accommodate casino growth and increased numbers
of patrons. The total impact of these facilities on the City has been an increased demand for public safety, and a large transportation impact, as the main arterial accessing these sites
goes directly through the City. The City is reimbursed for the costs of these services through the Tribes gaming compact agreement with the State. The Boeing Company’s layoffs and divesture
over the past several years in the Puget Sound area has had an effect on the regional and local economy. From 2001 through 2010 Boeing has reduced approximately 48% of its jobs in Auburn.
The Boeing downsizing operation has led to new economic growth in Auburn as available property and the adjacent land opens up to development opportunities for other businesses. These
new businesses are relocating to Auburn by using property vacated by the Boeing Company. In the long term, the City will benefit from the economic diversity. The City’s budgeting process
is based on financial policies directed at conserving fiscal resources while supporting programmatic strategies. Budget recommendations reflect a long-range analysis of fiscal trends.
These policies and practices have not only averted serious funding problems in the past, particularly in the current economic downturn and recent recession years of 2001 and 2002, but
have have enabled the General Fund to remain on a firm financial basis during the most recent recession. The City is maintaining a stable financial condition by reducing expenditure
budgets to match the current revenue streams. All funds contain adequate balances, and the City’s debt is manageable. The General and Cumulative Reserve funds contain satisfactory balances,
a significant Insurance 6
CITY OF AUBURN: 2010 CAFR LETTER OF TRANSMITTAL fund has been set aside for contingencies, and the Equipment Rental fund is adequate for vehicle replacement. The Proprietary and Fiduciary
funds are generally in satisfactory condition. The Golf Course fund has been under some economic pressure due to two years of poor weather, the economic downturn and competition from
surrounding courses. The City is currently reviewing options for this fund to make it a continuing viable recreational resource for the City. The Utility funds issued $20 million in
revenue bonds late in 2010 in conjunction with the 2009 updated comprehensive plan. The plan provided up to $40 million in bonds issuances over a six year period which will be serviced
with scheduled rate increases through 2014. The bonds will provide additional water storage, update and rehabilitate sewer pump stations and provide for additional water supply from
a neighboring purveyor. The City completed a comprehensive plan update in 2009 for all utilities and scheduled rate increases through 2014 were approved by the City as a result. B. FUTURE
ECONOMIC OUTLOOK Auburn is in a continuous process of both short-term and long-term financial planning. Short-term financial planning is inherent in the development of the City’s biennial
budget. Concurrent with the biennial budget is the review of the City’s long-term capital needs. Funding sources are assessed with the development of the six-year Capital Facilities
Plan. The capital facility plan is a component of the Comprehensive Master Plan, which outlines how the City should look and function in twenty years and creates a vision that can be
realistically implemented. An integral part of this vision is determining how to allocate the City’s financial resources to achieve the desired goals. The City has several long-term
planning and capital projects underway. These include reconstruction of aged utility infrastructure, reconstruction of local neighborhood streets, the A Street NW corridor, the M street
underpass project, and the downtown promenade/utility project. These projects will improve mobility, will contribute to the completion of a North/South arterial corridor, and pave the
way for economic growth and development in the downtown and surrounding urban center. Also underway is construction on an activity Center at the Les Gove Park campus. Growth is predicted
to continue, but not at the rate experienced in the late 1990’s. The challenge is to control costs that grow at
a faster rate than revenue. Areas of concern are health care costs and public safety costs related to incarceration and labor contracts. Continuing to maintain service level in these
sectors will draw valuable resources from other areas such as infrastructure replacement and capital programs. As Auburn moves forward, economic conditions will be continually monitored
and adjustments to city spending and services made to maintain the City’s financial health. Longterm plans will be focused on ensuring the City continues to be an economically strong
and viable city. III. FINANCIAL INFORMATION A. CASH MANAGEMENT The City invests in U.S. Treasury and Agency Issues, Prime Bankers Acceptances, Time Deposits, and Repurchase Agreements.
Investment policies and procedures, established by the Mayor and adopted by the City Council, require the City to establish a trustee to take delivery of all investment transactions
at time of payment. The City has contracted with the Bank of New York to provide delivery versus payment trustee services on all government agency investments. The State of Washington
maintains an investment pool to provide economies of scale in investing to smaller-and medium-sized cities in the State. The City uses this service for all funds not invested in longer-term
securities. The pool operates under the same legal restrictions that apply to all municipalities in the State and, consequently, uses the same instruments as listed above. The State
also takes delivery of all investment transactions. 7
CITY OF AUBURN: 2010 CAFR LETTER OF TRANSMITTAL The City has adopted a comprehensive investment policy statement to guide City investment practices. These policies are closely patterned
after the recommendations in Investing Public Funds published by the Government Finance Officer’s Association (GFOA). Investments are restricted to less than three years in order to
maintain liquidity on all investments in all funds, yet enable the City to take advantage of the yield curve. Fiduciary funds, which involve long-term reserves and require minimal liquidity,
are invested for longer time periods. The City undertakes repurchase agreements only with financial institutions that offer the City full protection in the event of default, by providing
the delivery of the underlying security to the City. B. RISK MANAGEMENT The City participates in the Washington Cities’ Insurance Authority (an insurance pool of over 100 cities) and
the City actively pursues risk reduction in the operation of its programs. The City purchases, with employee participation, most of its health insurance for its employees through commercial
policies administered by the Association of Washington Cities. Employees represented by the Teamsters Union have insurance through the Teamsters organization. The City participates in
the Washington State Workers’ Compensation program. In order to keep its long-term options open and to provide for any uninsured losses that might occur, the City has elected to build
an insurance reserve (the Insurance fund). The Insurance fund supplements various insurance coverages maintained by the City. This fund is also used to selfinsure some limited exposures,
the most significant of which is accidental loss to City-owned vehicles. The Washington Cities’ Insurance Authority not only provides a sharing of risk by pooling of losses, it also
provides an extensive array of professional services in risk management. The pool monitors the City’s management practices and damage claims. The City follows the guidelines provided
by the the pool in an effort to minimize risk exposure in the day-to-day operations of the City’s programs. The City also maintains an extensive employee safety program managed by the
Human Resources department. IV. OTHER RELEVANT INFORMATION A. INDEPENDENT AUDIT State law requires an annual audit of all City books of accounts and financial records by the Office of
the State Auditor, which is headed by an independently elected State official, the State Auditor. The Auditor has broad legal authority to inquire into all financial and legal compliance
matters and such audits are considered equal to audits by certified public accounting firms. The 2010 financial audit of the City is complete and was conducted in conformance with Generally
Accepted Auditing Standards. The financial statements of all City funds have been included in this audit. The City has been given an unqualified opinion for 2010. Please see the Auditor’s
Report. The State Auditor’s Office also audits the City’s administration of its federal grants under the single audit concept. B. AWARDS The Government Finance Officer’s Association
of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of Auburn for its Comprehensive Annual Financial Report
for the fiscal year ended December 31, 2009. This was the twenty-third consecutive year that the City has achieved this prestigious award. In order to be awarded a Certificate of Achievement,
a government must publish an easily readable and efficiently 8
CITY OF AUBURN: 2010 CAFR LETTER OF TRANSMITTAL 9 organized comprehensive annual financial report. This report must satisfy both generally accepted accounting principles and applicable
legal requirements. A Certificate of Achievement is valid for a period of one year only. We believe that our current Comprehensive Annual Financial Report continues to meet the Certificate
of Achievement Program’s requirements and we are submitting it to the GFOA to determine its eligibility for another certificate. The City has also received the Government Finance Officer’s
Association Distinguished Budget Presentation award for nineteen years. The City was one of just thirty-four cities in the state to receive both the Certificate of Achievement for Excellence
in Financial Reporting and the Distinguished Budget Presentation award for 2009. C. ACKNOWLEDGMENTS Preparation of this report could not have been accomplished without the professional,
efficient, and dedicated staff of the Finance department and various other City employees who assisted in its production. Further appreciation is extended to the Mayor and City Council
for their encouragement, interest, and support in conducting the financial affairs of the City in a sound and progressive manner. The assistance of the auditors from the Washington State
Auditor’s Office is also greatly appreciated. Respectfully submitted, Shelley R. Coleman Finance Director
10
11
12
13
14
CITY OF AUBURN: 2010 CAFR MANAGEMENT’S DISCUSSION AND ANALYSIS MANAGEMENT’S DISCUSSION AND ANALYSIS The City of Auburn’s (the “City”) discussion and analysis is designed to: • Assist
the reader in focusing on significant financial issues • Provide an overview of the City’s financial activity • Identify changes in the City’s financial position (its ability to meet
future years’ challenges) • Identify any material deviations from the approved budget • Identify individual fund issues or concerns Management’s Discussion and Analysis is designed to
focus on the current year’s activities, resulting changes and currently known facts. Therefore, it should be read in conjunction with the Transmittal Letter and the City’s financial
statements. Financial Highlights • Total government-wide net assets, the amount by which total assets exceed total liabilities, equal $567.5 million, an increase of $14.1 million or
2.5%. Of this, a total of $472.9 million, or 83.3% of total net assets, is invested in capital assets, net of debt related to the capital assets, and includes assets such as utility
systems, streets, buildings, land, vehicles and equipment. An additional $5.0 million of net assets is restricted for purposes of endowment and debt service. Of the remaining $89.9 million
of net assets, $14.2 million is legally restricted, reserved by City policy for specific purposes, or is restricted for use by the City’s utilities and $75.4 million is unrestricted.
• The net increase in government-wide net assets during 2010 was $14.1 million. Of this amount, $7.5 million was directly related to the increase in City-owned capital assets and infrastructure,
net of related debt. • On a government-wide basis, governmental net assets increased by $11.2 million during 2010, reflecting the combined effects of stronger than expected revenue collections
and the City’s continued vigilance in closely monitoring expenses following the economic downturn. • Business-type net assets increased by $2.9 million to $185.0 million during 2010
as a result of capital contributions related to the City’s water, sewer and stormwater utilities. • Governmental fund balances at year-end totaled $45.2 million. Of this amount, $43.6
million, or 96%, is unreserved and available to fund ongoing activities. However, the majority of the unreserved fund balance relates to special revenue funds and, as such, is legally
restricted for specific purposes. Included in unreserved fund balance is $5.7 million in the cumulative reserve fund that is intended to provide resources in the event of significant
downturns in certain City funds or provide for capital needs as designated by the City Council. Compared to 2009, total governmental fund balances increased by $4.7 million. This increase
reflect receipt of resources for local revitalization funding, fund balance increases for the General Fund (due to refinancing of debt related to Valley Communications and lower interfund
transfers), and local street improvements. • Total City debt payments during the year, net of compensated absences, were $30.1 million. Total outstanding debt, including bonds and loans,
totaled $102 million at December 31, 2010. This ending debt balance is an increase of $25.7 million from 2009 and is the result of the 2010 LGTO issuance of $31.9 million, the 2010 Utility
System issuance of $21.2 million and the reduction of the City Hall Annex office space capital lease of $24.5 million. See note 9 for further information on debt activity during the
year. 15
CITY OF AUBURN: 2010 CAFR MANAGEMENT’S DISCUSSION AND ANALYSIS Other City Highlights: Parks and Community Development • Completed design of the South Division Street Promenade Project.
Received a $3.0 million Economic Development Administration grant in support of this project. • Completed design and began construction of the City Hall Plaza project. • Demolish and
replace existing lights around the Game Farm Park soccer fields. • Construct new parking area for the Mary Olson Farm parking lot • Complete White River Trail extension from Roegner
Park to A Street SE. • Completed construction of the City Annex, enabling the relocation of several city functions including Finance, Public Works, Planning, Information Services and
the Emergency Operations Center. • Completed one-stop multi-service center, offering City residents and businesses a convenient, single location to access City services. • Successfully
recruited several businesses to the City of Auburn, resulting in the creation of 180 private sector jobs. Public Works • Repair and replace existing sewer problems throughout the City.
• Replace failing culverts on Mill Creek under Peasely Canyon Road. • Replace the Dogwood sewer pump station. Public Safety • Co-authored the South Correctional Entity (SCORE) to create
a regional misdemeanant jail. • Worked jointly with surrounding Green River cities to install a safety barrier on the Green River, conducted community meetings and worked with the federal
government on the Howard Hanson Dam issues. Overview of the Financial Statements The City’s basic financial statements are presented in three parts: 1) Government-wide financial statements
2) Fund financial statements 3) Notes to the financial statements Other supplementary information, in addition to the basic financial statements, is also contained in this report. This
section of the management’s discussion and analysis is intended to introduce and explain the basic financial statements. 16
CITY OF AUBURN: 2010 CAFR MANAGEMENT’S DISCUSSION AND ANALYSIS Government-wide Financial Statements The government-wide financial statements are designed to be corporate-like in that
all governmental and business-type activities are consolidated into columns which add to a total for the City. The focus of the Statement of Net Assets is designed to be similar to bottom-line
results for the City and its governmental and business-type activities. This statement combines and consolidates governmental funds’ current financial resources (short-term spendable
resources) with capital assets and long-term obligations. Over time, increases or decreases in net assets may be one indicator of improvement or deterioration in the City’s overall financial
health. The Statement of Activities is focused on both the gross and net cost of various functions, including both governmental and business-type activities, which are supported by the
City’s general tax and other revenues. This is intended to summarize and simplify the user’s analysis of cost of various governmental services and/or subsidy to various business-type
activities. The revenue generated by the specific functions (charges for services, grants, and contributions) is compared to the expenses for those functions to show how much each function
either supports itself or relies on taxes and other general funding sources for support. All activity on this statement is reported on the accrual basis of accounting, requiring that
revenues are reported when they are earned and expenses are reported when they are incurred, regardless of when cash is received or disbursed. Governmental activities of the City include
general government (executive, finance, legal, human resources, and court), security (police), physical environment, economic environment, transportation, health and human services,
and culture and recreation. The City’s business-type activities include water, sanitary sewer, storm water and solid waste utilities, as well as the operations of a golf course, airport,
airport, and cemetery. Governmental activities are primarily supported by taxes, charges for services, and grants while business-type activities are self-supporting through user fees
and charges. Fund Financial Statements The Fund Financial Statements are the traditional reporting format for governments. A fund is a fiscal and accounting entity with a self-balancing
set of accounts used to account for specific activities or meet certain objectives. While the government-wide statements present the City’s finances based on the type of activity (general
government vs. business type), the Fund Financial Statements are presented by fund type, such as the general fund, special revenue funds and proprietary funds, with the focus on major
funds. Governmental Funds are used to account for essentially the same functions that are reported as governmental activities in the government-wide financial statements. The government
major fund is presented utilizing the “sources and uses of liquid resources” basis. This is the the manner in which the budget is typically developed. The basis of accounting is different
between the governmental fund statements and the government-wide financial statements. The governmental fund statements focus on the near-term revenues/financial resources and expenditures
while the government-wide financial statements include both near-term and long-term revenues/financial resources and expenses. The information in the governmental fund statements can
be used to evaluate the City’s near-term financing requirements and immediate fiscal health. Comparing the governmental fund statements with the government-wide statements can help the
reader better understand the long-term impact of the City’s current-year financing decisions. Because the basis of accounting is different between the governmental fund statements and
the government-wide financial statements, reconciliations are provided. The reconciliation between the governmental fund Balance Sheets and the government-wide Statement of Net Assets
is found on the bottom of the governmental funds’ Balance Sheet, while the reconciliation between the 17
CITY OF AUBURN: 2010 CAFR MANAGEMENT’S DISCUSSION AND ANALYSIS governmental fund Statement of Revenues, Expenditures and Changes in Fund Balance and the government-wide Statement of
Activities is found directly following the governmental funds’ Statement of Revenues, Expenses, and Changes in Fund Balance. The City maintains twenty-two individual governmental funds.
Of these, three are considered major (the general fund, the arterial street fund, and the capital improvement projects fund) and are presented separately in the governmental fund Balance
Sheet and the governmental fund Statement of Revenues, Expenditures and Changes in Fund Balances. The remaining governmental funds are combined into a single column labeled “Other Governmental
Funds”. Individual fund data for each of the other governmental funds can be found in the combining statements later in this report. The City maintains budgetary control over its operating
funds through the adoption of a biennial budget. Budgets are adopted at the fund level according to state law. Budgetary comparison statements are presented for the general and arterial
street funds as required supplemental information. Other budgetary comparison schedules are included following the other government funds’ combining statements in this report. Proprietary
funds are used by governments to account for their business-type activities and use the same basis of accounting utilized in private industry. Business-type activities provide specific
goods or services to a group of customers that are paid for by fees charged to those customers. There is a direct relationship between the fees paid and the services rendered. The City
has two types of proprietary funds: enterprise funds and internal service funds. Enterprise funds are used to account for goods and services provided to citizens, while internal service
funds are used to account for goods and services provided internally to various City departments. Enterprise funds report the same functions presented as business-type activities activities
in the governmentwide statements, but in greater detail. The City’s enterprise fund statements provide information on the City’s four utilities (water, sanitary sewer, storm water, and
solid waste) as well as the Cityowned airport, cemetery, and golf course. Internal service funds are an essential accounting tool used to accumulate and allocate costs internally among
the City’s various functions. The City uses internal service funds to account for its fleet of vehicles, its maintenance and operation of facilities, the City-wide provision of computer
hardware and software services, and its insurance premiums. Internal service funds benefit both governmental and business-type activities, and are allocated accordingly in the government-wide
statement of activities. Fiduciary funds account for assets held by the City in a trustee capacity or as an agent for individuals, private organizations, other governments or other funds.
Fiduciary funds are not included in the government-wide financial statements because their assets are not available to support the City’s activities. The City has two fiduciary funds:
a pension fund and an agency fund, and are accounted for on the accrual basis. As agency funds are custodial in nature, they do not include revenues and expenses. Notes to the Financial
Statements The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. The notes to
the financial statements can be found at the end of the Basic Financial Statements section. 18
CITY OF AUBURN: 2010 CAFR MANAGEMENT’S DISCUSSION AND ANALYSIS Other Information In addition to the basic financial statements and accompanying notes, this report also presents certain
required supplementary information concerning the budget vs. actual reports of the City’s general fund and major special revenue funds. The budget vs. actual required supplementary information
can be found on page 42 and 43, and the pension benefit and other postemployment benefit required supplementary information is found in note 11. The combining statements referred to
earlier in connection with nonmajor governmental funds, nonmajor enterprise funds, and internal service funds are presented in the section titled “Fund Financial Statements and Schedules”.
Government-wide Financial Analysis The statement of fund net assets may serve as a useful indicator of the City’s financial position. The overall financial position has improved for
the City of Auburn over the prior year. Changes in Net Assets from 2009 to 2010 show an increase in total net assets of $14 million. Following is a condensed version of the government-wide
statement of net assets with a comparison to 2009: Comparative Analysis of 2009 and 2010 Statement of Net Assets As of 12/31/10 As of 12/31/09 As of 12/31/10 As of 12/31/09 As of 12/31/10
As of 12/31/09 Current and other assets $ 101,733,088 $ 95,967,931 $ 55,721,170 $ 37,447,361 $ 157,454,258 $ 133,415,292 Capital assets, net of accumulated depreciation 353,913,056 343,474,388
173,065,995 167,578,719 526,979,051 511,053,107 Total assets 455,646,145 439,442,319 228,787,164 205,026,080 684,433,310 644,468,399 Long-term liabilities 64,383,783 61,994,470 37,949,404
16,630,102 102,333,187 7 8,624,572 Other liabilities 8,840,830 6,259,422 5,744,311 6,157,098 14,585,141 1 2,416,520 Total liabilities 73,224,613 68,253,892 43,693,715 22,787,200 116,918,328
9 1,041,092 Net assets Invested in capital assets, net of related debt 320,506,701 314,691,982 152,343,987 150,621,492 472,850,688 465,313,474 Restricted 15,180,467 12,741,566 4,107,128
2,071,219 19,287,595 1 4,812,785 Unrestricted 46,734,364 43,754,879 28,642,334 29,546,169 75,376,698 7 3,301,048 Total net assets $ 382,421,532 $ 371,188,427 $ 185,093,449 $ 182,238,880
$ 567,514,981 $ 553,427,307 Governmental Activities Business-type Activities Total The largest component of the City’s net assets, $472.9 million, or 83.3%, is its investment in capital
assets, less debt related to the acquisition or construction of those assets. These capital assets, such as streets, parks, trails, and vehicles and equipment related to police and public
works, are used to provide services to the citizens. As a result, these assets are not for sale, and are therefore not available to fund current and future City obligations. The City
elected the GASB 34 reporting option to include all general infrastructure of the City acquired or substantially renovated since 1980. The largest component of unrestricted net assets,
$46.7 million, may be used for functions such as public safety employee salaries and supplies, park and road maintenance, and other general governmental services. The second largest
component of unrestricted net assets, $28.6 million, represents the unrestricted net assets of the City’s business-type activities and may only be spent on activities related to one
of the four City utilities (water, sanitary sewer, storm water and solid waste) or to the City-owned ventures (airport, golf course, cemetery, and commercial retail property). Examples
of utility activities include maintenance of water/sewer mains, pump and lift stations, storm drain flushing, water meter reading, and garbage collection. Activities related to the other
Cityowned ventures include maintenance of hangars and runways at the airport, and grooming and landscaping at the golf course and cemetery. 19
CITY OF AUBURN: 2010 CAFR MANAGEMENT’S DISCUSSION AND ANALYSIS Restricted governmental fund net assets are $15.2 million and are restricted for purposes such as capital project construction,
debt service, mitigation, and endowment. Total net assets invested in capital assets, net of related debt increased $5.8 million. Changes in Net Assets The change in net assets represents
the increase or decrease in City net assets resulting from its various activities. Following is a condensed version of the City’s changes in net assets. The table shows the revenues,
expenses and related changes in net assets for both governmental-type and business-type activities: Comparative Analysis of 2009 and 2010 Changes in Net Assets 2010 2009 2010 2009 2010
2009 Revenues: Program revenues Charges for services $ 7,849,758 $ 8,108,542 $ 43,461,742 $ 42,338,079 $ 51,311,500 $ 50,446,621 Operating grants and contributions 3,022,835 3,001,401
70,841 87,454 3,093,675 3,088,855 Capital grants and contributions 10,702,132 12,806,049 7,391,111 1,992,259 18,093,244 14,798,308 General revenues -Property taxes 14,766,470 13,362,672
--14,766,470 13,362,672 Sales taxes 15,657,081 14,727,496 --15,657,081 14,727,496 Interfund utility taxes 2,788,083 3,437,526 --2,788,083 3,437,526 Admission & utility taxes 8,886,964
9,071,485 --8,886,964 9,071,485 Excise taxes 1,389,030 2,310,076 --1,389,030 2,310,076 Other taxes 4,622,138 4,607,584 --4,622,138 4,607,584 Investment earnings 379,316 570,798 158,211
312,618 537,527 883,416 Miscellaneous revenue 214,190 67,223 1,588,068 3,669,878 1,802,257 3,737,101 Total revenues 70,277,997 72,070,852 52,669,972 48,400,288 122,947,969 120,471,140
Expenses: General government 7,934,948 7,567,085 --7,934,948 7,567,085 Public safety 25,890,627 25,675,063 --25,890,627 25,675,063 Transportation 11,989,752 11,471,167 --11,989,752 11,471,167
Physical environment 2,498,539 3,327,836 --2,498,539 3,327,836 Culture and recreation 7,307,270 7,561,569 --7,307,270 7,561,569 Economic environment 2,499,631 3,000,257 --2,499,631 3,000,257
Health and human services 578,247 527,029 --578,247 527,029 Interest on long-term debt 1,809,322 408,471 --1,809,322 408,471 Water --10,042,879 8,970,215 10,042,879 8,970,215 Sanitary
sewer --17,794,958 16,569,297 17,794,958 16,569,297 Storm drainage --6,994,381 7,275,072 6,994,381 7,275,072 Solid waste --9,894,429 11,019,606 9,894,429 11,019,606 Golf course --1,844,108
1,909,758 1,844,108 1,909,758 Other business-type activities --1,781,204 1,666,754 1,781,204 1,666,754 Total expenses 60,508,335 59,538,478 48,351,960 47,410,702 108,860,294 106,949,180
Increase in net assets before transfers 9,769,662 12,532,374 4,318,013 989,586 14,087,674 13,521,960 Transfers 1,463,444 170,605 (1,463,444) (170,605) --Change in net assets 11,233,105
12,702,979 2,854,569 818,981 14,087,674 13,521,960 Net assets-beginning of period 371,188,427 358,485,448 182,238,880 181,419,899 553,427,307 539,905,347 Net assets-end of period $ 382,421,532
$ 371,188,427 $ 185,093,449 $ 182,238,880 $ 567,514,981 $ 553,427,307 Governmental Activities Business-type Activities Total Governmental activities contributed $11.2 million to the
total increase in City net assets. Revenues to fund capital assets are recorded as program or general revenues in the statement of activities. However, asset purchases are not recorded
as expenses in the year purchased and construction costs are not recorded as expenses in the year incurred. Instead, the costs are recorded as longterm assets and are depreciated over
their useful life. 20
CITY OF AUBURN: 2010 CAFR MANAGEMENT’S DISCUSSION AND ANALYSIS General tax revenues increased by 1.5% to $48.2 million between 2009 and 2010, compared to an increase of 4.6% between
2008 and 2009: • Property tax revenue rose $1.4 million, or 10.4%. • Sales tax collections increased $782,000, or 5.4%, reflecting general improvement in retail and business sectors
of the local. Continued weakness was noted in the construction sector. • Utility and admission tax revenue decreased by $834,000 or 6.7%. The decrease was attributable to a temporary
increase in the solid waste utility tax rate that begun in 2008 and ended in late 2009 to fund improvements at the Auburn Community Center. • Excise tax revenue decreased by $921,000,
or 39.8%. The decline in excise taxes is from a drop in real estate excise taxes (REET) which reflects continued weakness in the construction and real estate sectors of the economy as
a result of the prolonged economic downturn. Investment earnings fell by $192,000 or 33.6% in governmental activities and $154,000 in businesstype activities for a government-wide decline
of $346,000 or 39.2%. These declines reflect the continued low interest rates. Government-wide Miscellaneous revenue decreased $2.0 million, reflecting a prior year receipt of a federal
grant for the airport parallel taxiway. Government-wide expenses increased by approximately $1.9 million or 1.7% and was attributable
to an increase in interest on long-term debt associated with new debt incurred for the construction of the City Hall Annex. The first chart on the following page summarizes the government
activity revenue by source, while the second chart reflects the specific programs’ revenues and related expenses for the various activities of the City. Gaps between specific programs’
revenues and their related expenditures are funded through general tax revenues. 21
CITY OF AUBURN: 2010 CAFR MANAGEMENT’S DISCUSSION AND ANALYSIS Revenues by Source – Government Activities Charges for services 11%Capital grants & contributions 4%Operating grants &
contributions 15% Property taxes 21% Sales taxes 22% Interfund utility taxes 4% Utility & admission taxes 13% Other taxes 9% Other revenue 1% Program Expenses and Revenues – Governmental
Activities $0 $5,000,000 $10,000,000 $15,000,000 $20,000,000 $25,000,000 $30,000,000 $35,000,000 General go vernment Public safety Transportation Physical environment Culture and recreation
Economic environment Health and human services Program revenues Expenses 22
CITY OF AUBURN: 2010 CAFR MANAGEMENT’S DISCUSSION AND ANALYSIS Business-type net assets totaled $185.1 million, an increase of 1.6%. Key components of this increase include: • Business-type
revenues increased $4.3 million due primarily to an increase in utility capital contributions. • Income (loss) before capital contributions and transfers amounted to: o Water fund: $
(108,001) o Sanitary sewer fund: (1,112,136) o Storm fund: (331,717) o Solid waste fund: (651,897) o Golf course: (414,819) o Non-major funds: (289,562) $ (2,908,132) • Net transfers-out
totaled $1,463,444. Below is a chart that shows the relative net asset balances for each business-type fund: Business Type Net Assets – By Fund Water 32.3% Sanitary sewer 36.6% Storm
drainage 22.1% Solid waste 0.5% Airport 5.2% Cemetery 0.5% Golf course 2.8% 23
CITY OF AUBURN: 2010 CAFR MANAGEMENT’S DISCUSSION AND ANALYSIS The majority of net assets in the City’s enterprise funds relate to capital asset infrastructure, such as water and sewer
mains, the airport runway, and the golf course land. As such, most of the net assets are not available to support the ongoing expenses of the funds. Following are two charts that contrast
the total net assets to the spendable portion of net assets for each enterprise fund: Comparison of Total Net Assets to Spendable Net Assets Utility Funds Water Sanitary sew er Storm
drainage Solid w aste $0 $10,000,000 $20,000,000 $30,000,000 $40,000,000 $50,000,000 $60,000,000 $70,000,000 Spendable net assets Total net assets Comparison of Total Net Assets to Spendable
Net Assets Other Enterprise Funds Airport Cemetery Golf course ($1,000,000) $0 $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 $7,000,000 $8,000,000 $9,000,000 $10,000,000
Spendable net assets Total net assets 24
CITY OF AUBURN: 2010 CAFR MANAGEMENT’S DISCUSSION AND ANALYSIS The first chart following depicts the revenues and expenses for business-type funds, while the second shows the various
sources of business-type revenue: Business Type Activity Revenues and Expenses Before Capital Contributions and Transfers $0 $1,500,000 $3,000,000 $4,500,000 $6,000,000 $7,500,000 $9,000,000
$10,500,000 $12,000,000 $13,500,000 $15,000,000 $16,500,000 $18,000,000 Water Sanitary sewer Storm drainage Solid w aste Golf course Minor businesstype activities Revenues Expenses Business
Type Activity Revenues By Source Charges for services 81.2% Capital contributions 14.0% Investment earnings 0.3% Business-type miscellaneous income 4.5% 25
CITY OF AUBURN: 2010 CAFR MANAGEMENT’S DISCUSSION AND ANALYSIS Financial Analysis of Governmental Funds The purpose of the City’s governmental funds is to report on near-term revenues/financial
resources and expenditures. This information helps determine the City’s financial requirements in the near future. Specifically, fund balance is a good indicator of the City’s financial
resources. As of December 31, 2010, the City’s governmental funds had combined fund balances of $45.2 million, an increase of $4.7 million or 11.6% over the previous year. This increase
is primarily due to an increase in fund balance from the receipt of resources associated with the local revitalization bond proceeds and an increase in fund balance for the General fund.
The following table shows the changes in fund balance between 2009 and 2010. Changes In Fund Balance -By Fund Fund 2010 2009 Difference General fund 15,382,354 13,237,851 2,144,503 Arterial
street fund 1,767,344 1,240,663 526,681 Capital improvement fund 7,124,925 9,770,693 (2,645,768) Cumulative reserve fund 5,732,032 5,360,687 371,345 Mitigation fund 4,336,836 5,971,594
(1,634,758) Cemetery endowment fund 1,537,107 1,506,362 30,745 All other government funds 9,303,373 3,447,960 5,855,413 Total 45,183,971 40,535,810 4,648,161 Of the government funds’
total fund balances, $43.6 million is unreserved. Of this unreserved total, $12.6 million is earmarked for capital projects and $15.5 million is in special revenue funds and is earmarked
for specific purposes. Of the $1.6 million of fund balances that are reserved, $1.4 million is reserved for endowment. The general fund is the primary operating fund of the City. All
receipts and payments of ordinary City operations are processed through it unless they are required to be accounted for in another fund. At the end of 2010, the general fund had a fund
balance of $15.4 million, all of which is unreserved. Other funds that had significant fund balances include: • $7.1 million in the capital improvement projects fund; used for various
governmental capital asset projects. • $5.7 million in the cumulative reserve fund; used for revenue stabilization or capital projects. • $4.3 million in the mitigation fund; used to
collect fees from new development to mitigate the cost of new roads and other infrastructure. • $1.5 million in the cemetery endowed care fund; used for maintenance of the cemetery.
• $9.3 million in all other government funds; used primarily for local street improvements and local revitalization funding. 26
CITY OF AUBURN: 2010 CAFR MANAGEMENT’S DISCUSSION AND ANALYSIS The following chart shows the relative fund balances for governmental funds: Governmental Funds – Fund Balances General
fund 33% Arterial street fund 4% Capital improvement fund 16% Cumulative reserve fund 13% Mitigation fund 10% Cemetery endowment fund 3%All other government funds 21% The increase in
the general fund balance of $2.1 million is primarily due to refunding of outstanding debt associated with Valley Communications ($1.1 million) and a decrease in interfund transfers
($972,000). In addition, property taxes increased $2.1 million or 20%, and sales taxes increased $782,000 or 5% reflecting an increase in retail activity associated with the recovery
from the 2009 recession. These increases were partially offset by a decrease in intergovernmental revenues of $1.5 million and decrease in Interfund utility taxes of $653,000. 27
CITY OF AUBURN: 2010 CAFR MANAGEMENT’S DISCUSSION AND ANALYSIS The general fund revenue increase of $696,989 came from the following sources: 2010 General Fund Revenue Increases /(Decreases)
– By Source Sales taxes $781,980 Fines & forfeitures $561,377 Intergovernmental ($1,460,722) Miscellaneous ($214,549) Property taxes $2,068,019 Interfund utility taxes ($652,781) Utility
& admission taxes ($545,264)Licenses & permits ($14,959) Charges for services $173,888 ($2,000,000) ($1,500,000) ($1,000,000) ($500,000) $0 $500,000 $1,000,000 $1,500,000 $2,000,000
$2,500,000 $3,000,000 The ending fund balance decrease of $2.6 million in the capital improvement projects fund is largely due to the costs associated with the construction of the Activity
Center, City Hall Annex and the City Hall Plaza project. Other significant changes in fund balance include: • The mitigation fund decreased, primarily due to transfers out of $2.2 million
related to the M street grade separation project. • The arterial street fund increased by $527,000 as revenues exceeded expenditures and net transfers. • The local street fund increased
by $574,000 as revenues exceeded expenditures and net transfers. Financial Analysis of Proprietary Funds The City’s proprietary funds provide the same type of information as found in
the government-wide financial statements, but in greater detail. Factors affecting the finances of the City’s proprietary funds have already been addressed in the discussion of the City’s
business-type activities. General Fund Budgetary Highlights The City budgets biennially by adopting a budget at the end of the preceding fiscal year, and then making adjustments as necessary
via budget amendments throughout the next two years. Major budget revisions included: 28
CITY OF AUBURN: 2010 CAFR MANAGEMENT’S DISCUSSION AND ANALYSIS • Reduction in General Fund expenditures by approximately $4.2 from the original budget as a result of a reduction in workforce
made that started in 2009 and continued with further departmental reductions in 2010 in response to the economic downturn. • Included in this are reductions in contribution rates to
the Equipment rental fund by 25% and reductions in contribution rates to the Information Services 30% and Multi Media 18% • Increase property tax revenue $1,885,400; decrease Sales tax
revenue $3,431,100 and sales tax credit for annexation $772,500 to revise original estimates to coincide with economic trends. • Increase of $412,000 for a federal COPS grant to fund
five patrol officer positions for three years. • Decrease Traffic Enforcement revenue $859,000 to be in line with 2009 revenue trend. • Decrease in gambling tax revenue of $300,000 due
to the reduction in the tax rate from 12% to 4% for a period of 2 years. • Increase in Intergovernmental charges by $650,000 related to SCORE start up and transition costs. • Increase
in Interfund Rentals of $300,000 and corresponding capital lease interest related to the City Hall Annex Interfund payments from the utility funds. • Increase proceeds of long term debt
and corresponding debt service budget for $ 1,090,000 related to the refinancing of Valley Communications Debt Service. Reasons for the variances in the general fund between the final
budget and actual results include: • Retail sales and use tax were in line with budgeted levels, after including payments received from the State of Washington for streamlined sales
tax mitigation. These revenues are included under intergovernmental revenues. • Security of persons and property expenditures were below budget by $2.6 million as jail costs were less
than anticipated. • General government expenditures were $1.1 million below budget due to savings as a result of the City’s contribution for SCORE startup costs. The City’s contribution
did not occur occur in 2010 as anticipated. Capital Asset and Debt Administration Capital Assets The City’s investment in capital assets for both its governmental and business-type activities
as of December 31, 2010 totaled $527 million (net of accumulated depreciation), an increase of $15.9 million from 2009. This investment in capital assets includes land, buildings, improvements,
machinery and equipment, construction in progress, utility transmission/distribution systems, roads, bridges, and other infrastructure. 29
CITY OF AUBURN: 2010 CAFR MANAGEMENT’S DISCUSSION AND ANALYSIS Major capital asset changes during the year include: • In 2010, the City exercised its lease-purchase option on the City
Hall Annex and purchased the building for $24.9M, resulting in $24.5 million decrease of intangible capital assets and an increase in building capital assets of $31.4 million. • Developer
contributions resulted in an increase of $6.4 million in utility infrastructure assets and $4.3 million in governmental infrastructure assets. • $5.9 million was spent by proprietary
funds on construction projects during the year. • $14 million was spent by governmental funds on construction projects during the year. Some of the larger projects in the governmental
funds include: o $1.8 million on M St SE Grade Separation o $1.6 million on Arterial Pavement Preservation o $1.6 million on Auburn Community Center o $1.1 million on Local Street Pavement
Preservation o $1.1 million on City Hall Plaza o $1.0 million on South Division Promenade o $0.9 million on City Hall Plaza A summary of the City’s net assets follows: Summary of Capital
Assets (net of depreciation) As of 12/31/10 As of 12/31/09 As of 12/31/10 As of 12/31/09 As of 12/31/10 As of 12/31/09 Land $ 108,083,252 $ 106,289,277 $ 14,505,063 $ 14,464,998 $ 122,588,315
$ 120,754,275 Building 45,418,590 14,778,942 7,116,568 8,129,361 52,535,158 22,908,303 Site improvements 4,598,500 4,907,626 145,763,862 130,188,983 150,362,362 135,096,609 Equipment
6,763,180 7,160,046 403,966 545,346 7,167,146 7,705,392 Intangibles 864,598 25,206,437 --864,598 25,206,437 Infrastructure 174,203,901 168,650,223 --174,203,901 168,650,223 Construction
in progress 13,981,035 16,481,837 5,276,536 14,250,028 19,257,571 30,731,865 $ 353,913,056 $ 343,474,388 $ 173,065,995 $ 167,578,716 $ 526,979,051 $ 511,053,104 Governmental Activities
Business-type Activities Total More detailed information on capital assets is provided in note 7. Long-term Debt At the end of the current fiscal year, the City had total bonded debt
outstanding of $88.0 million. Of this amount, $27.8 million is due to other governments, $37 million is general obligation bonds, and $23.2 million is revenue bonds for the water, sewer
and storm and utilities. General obligation debt increased $28.8 million in 2010, reflecting the issuance of new debt in 2010 for City Hall Plaza and Promenade projects. Business-type
activity debt increased $21 million in 2010, reflecting the issuance of utility revenue bonds in 2010 for infrastructure improvements. The City currently maintains a rating of Aa3 with
Moody’s and a rating of AA with Standard & Poor’s for its general obligation debt. 30
CITY OF AUBURN: 2010 CAFR MANAGEMENT’S DISCUSSION AND ANALYSIS The following schedule summarizes the City’s bonded debt: Summary of Bonded Debt Governmental Activities Business-type
Activities Total General obligation bonds $ 31,375,000 5,665,000 $ 37,040,000 Revenue bonds -23,220,000 23,220,000 Due to other governments $ 27,776,850 -27,776,850 $ 59,151,850 $ 28,885,000
$ 88,036,850 Below is a summary of additional, non-bonded long-term debt of the City: Other Long-Term Debt Public Works Trust Fund loans $ 10,296,024 Employee leave benefits 2 ,649,704
Other Post Employment Benefits 2 ,068,840 $ 15,014,569 Washington State law limits the amount of general obligation debt a governmental entity may issue to 7.5% of its total assessed
value. Of the 7.5% limit, 2.5% is for general purposes, 2.5% is for open spaces/parks, and 2.5% is for utilities. Non-voted (limited tax) general obligation indebtedness is limited to
1.5% of assessed valuation. The combination of unlimited tax and limited tax general obligation debt for all purposes cannot exceed 7.5% of assessed valuation. Following is a summary
of the City’s legal debt limitations and capacity: Summary of Legal Debt Limits and Capacity With a Vote Legal Limitation Auburn Capacity General $ 188,607,350 $ 121,784,982 Open spaces/parks
188,607,350 188,607,350 Utilities 188,607,350 188,607,350 Totals $ 565,822,050 $ 498,999,683 Without a Vote General $ 113,164,410 $ 46,342,042 Totals $ 113,164,410 $ 46,342,042 Additional
information can be found in note 9 and in the statistical section of this report. Economic Factors The short-term outlook for the City continues to be guarded as concerns over the pace
of growth in employment and real estate remains. In the longer-term, the economic outlook for the City is positive. The City has made significant investments in the community, including
investing in a redevelopment of the City Hall Plaza, Promenade, purchase of the City Hall Annex, and construction of the Activity Center. City retail activity is improving, paralleling
the trend seen regionally and nationally. 31
CITY OF AUBURN: 2010 CAFR MANAGEMENT’S DISCUSSION AND ANALYSIS 32 Recent significant development in the City includes: • Construction of an 11,000-square Auburn Regional Medical Center
foot cancer treatment center adjacent to the hospital, along with a public/private mix 300-stall parking garage. The City owns 145 of the stalls in the garage • Construction of a new
three story building Professional Plaza building. The building features Key Bank as its anchor and medical/professional offices on the first floor and City offices on the second and
third floors. • Redevelopment of several blocks (4+) in downtown near the Transit Station valued at $240 million. The State has identified this project as a demonstration project for
the State Local Revitalization Fund (LRF). Under the LRF program, the City will receive up to $250,000 a year that will support approximately $7.2 million in infrastructure improvements
in this area. This project will also be supported by a $3.0 million Economic Development Administration Administration grant. • Issuance of 115 commercial and 232 residential building
permits with a total construction valuation of $38.4 million. • Plans continue to move forward to develop a large retail/office project in the City’s north end that had been a drive-in
movie complex. Up to 65 acres may be involved. Significant new retail sales tax revenues would be generated from this project. • Opening of a new super Wal-Mart adjacent to the Super
Mall. This major retail establishment will provide the City with new jobs and new tax revenues. The City continues to adjust its current expenditure budget and to closely monitor its
financial performance in order to live within its means. While the economic recession ended in late 2009, municipal revenues are expected to remain relatively low in the near term. In
the longer term, the City’s financial performance is expected to continue to improve as the combined effects of the economic recovery and community investments are expected to take hold.
Requests for Information This financial report is designed to provide a general overview of the City of Auburn’s finances for readers with an interest in the City’s finances. Questions
concerning this report, or requests for additional information, may be addressed to the Finance Director, City of Auburn, 25 West Main Street, Auburn WA 98001-4998.
CITY OF AUBURN: 2010 CAFR BASIC FINANCIAL STATEMENTS GOVERNMENT-WIDE FINANCIAL STATEMENTS The City presents two government-wide financial statements: The Statement of Fund Net Assets
provides information all on city assets and liabilities, with the difference between the two reported as net assets. The Statement of Activities is focused on both the gross and net
cost of various functions, including both governmental and business-type activities, which are supported by the City’s general tax and other revenues. 3 3
CITY OF AUBURN: 2010 CAFR BASIC FINANCIAL STATEMENTS 3 4
CITY OF AUBURN: 2010 CAFR BASIC FINANCIAL STATEMENTS 3 5 GOVERNMENTAL BUSINESS-TYPE ACTIVITIES ACTIVITIES TOTAL ASSETS: CASH AND CASH EQUIVALENTS (Note 3) $ 41,136,650 $ 20,824,655 $
61,961,305 INVESTMENTS (Note 3) 4,016,480 6,251,852 10,268,332 RECEIVABLES: TAXES 493,233 -493,233 CUSTOMER ACCOUNTS 87,846 4,745,439 4,833,285 OTHER RECEIVABLES 2,196,088 734,710 2,930,799
SPECIAL ASSESSMENTS 609,281 -609,281 DUE FROM OTHER GOVERNMENTAL UNITS (Note 6) 1,651,180 144,625 1,795,805 INTERNAL BALANCES ( 68,249) 68,249 -MATERIALS AND SUPPLIES INVENTORY 133,292
249,431 382,723 LONG-TERM CONTRACTS AND NOTES 609,511 1,033,045 1,642,556 PREPAID EXPENSES 1,316,577 -1,316,577 NET PENSION ASSET 261,158 -261,158 RESTRICTED ASSETS: TEMPORARILY RESTRICTED:
CASH AND CASH EQUIVALENTS (Note 3) 12,819,932 21,669,164 34,489,096 DUE FROM OTHER GOVERNMENTAL UNITS (Note 6) 1,244,459 -1,244,459 PERMANENTLY RESTRICTED: CASH AND CASH EQUIVALENTS
(Note 3) 1,271,673 -1,271,673 INVESTMENT IN JOINT VENTURES 33,953,977 -33,953,977 DEPRECIABLE CAPITAL ASSETS (NET OF ACCUMULATED DEPRECIATION): (Note 7) 231,848,769 153,284,396 385,133,165
NON-DEPRECIABLE CAPITAL ASSETS 122,064,287 19,781,599 141,845,886 TOTAL ASSETS 455,646,145 228,787,164 684,433,310 LIABILITIES: ACCOUNTS PAYABLE 5,893,477 2,550,246 8,443,723 OTHER LIABILITIES
PAYABLE 426,182 48,464 474,646 PAYABLE FROM RESTRICTED ASSETS: ACCRUED INTEREST -1,334,472 1,334,472 DEPOSITS -69,413 69,413 UNEARNED REVENUE 1,647,184 880,974 2,528,158 BONDS AND OTHER
DEBT PAYABLE: DUE WITHIN ONE YEAR (Note 9) 2,325,171 1,741,716 4,066,887 DUE IN MORE THAN ONE YEAR (Note 9) 33,086,909 37,068,430 70,155,339 DUE TO OTHER GOVERNMENTAL UNITS: DUE WITHIN
ONE YEAR (Note 9) 196,000 196,000 DUE IN MORE THAN ONE YEAR (Note 9) 27,580,850 27,580,850 NET OPEB OBLIGATION (Note 11) 2,068,840 -2,068,840 TOTAL LIABILITIES 73,224,613 43,693,715
116,918,328 NET ASSETS: INVESTED IN CAPITAL ASSETS, NET OF RELATED DEBT 320,506,701 152,343,987 472,850,688 RESTRICTED FOR: CAPITAL PROJECTS 6,905,879 -6,905,879 DEBT SERVICE 22,524
3,696,499 3,719,023 SPECIAL REVENUE FUND PROJECTS 6,980,391 -6,980,391 PERMANENT FUND NONEXPENDABLE 1,271,673 -1,271,673 RATE STABILIZATION -410,629 410,629 UNRESTRICTED NET ASSETS 46,734,364
28,642,334 75,376,698 TOTAL NET ASSETS $ 382,421,532 $ 185,093,449 $ 567,514,981 The notes to the financial statements are an integral part of this statement. PRIMARY GOVERNMENT CITY
OF AUBURN, WASHINGTON STATEMENT OF FUND NET ASSETS DECEMBER 31, 2010
CITY OF AUBURN: 2010 CAFR BASIC FINANCIAL STATEMENTS OPERATING CAPITAL CHARGES GRANTS AND GRANTS AND EXPENSES FOR SERVICES CONTRIBUTIONS CONTRIBUTIONS FUNCTIONS /PROGRAMS: PRIMARY GOVERNMENT
GOVERNMENTAL ACTIVITIES: GENERAL GOVERNMENT $ 7 ,934,948 $ 1,168,574 $ 7 2,004 $ 2 23,476 PUBLIC SAFETY 2 5,890,627 2,938,942 1 ,577,973 7,569 TRANSPORTATION 1 1,989,752 960,532 -7 ,839,940
PHYSICAL ENVIRONMENT 2 ,498,539 86,306 1 07,114 2 ,035,749 CULTURE AND RECREATION 7 ,307,270 962,558 6 43,142 595,398 ECONOMIC ENVIRONMENT 2 ,499,631 1,732,397 3 96,147 -HEALTH AND HUMAN
SERVICES 578,247 449 2 26,455 -INTEREST ON LONG-TERM DEBT 1 ,809,322 ---6 0,508,335 7,849,758 3 ,022,835 1 0,702,132 BUSINESS-TYPE ACTIVITIES: WATER 1 0,042,879 9,100,699 -1 ,257,840
SANITARY SEWER 1 7,794,958 15,968,503 -4 ,406,132 STORM DRAINAGE 6 ,994,381 6,441,998 -1 ,727,140 SOLID WASTE 9 ,894,429 9,169,380 70,841 -GOLF COURSE 1 ,844,108 1,425,987 --NONMAJOR
BUSINESS-TYPE ACTIVITIES 1 ,781,204 1,355,175 --4 8,351,960 43,461,742 70,841 7 ,391,111 ,391,111 TOTAL PRIMARY GOVERNMENT $ 1 08,860,294 $ 51,311,500 $ 3 ,093,675 $ 1 8,093,244 GENERAL
REVENUES: TAXES: PROPERTY RETAIL SALES AND USE INTERFUND UTILITY UTILITY EXCISE OTHER INVESTMENT EARNINGS OTHER REVENUES GAIN ON SALE OF CAPITAL ASSETS CONTRIBUTIONS TO ENDOWMENT FUNDS
TRANSFERS (Note 5) TOTAL GENERAL REVENUES CHANGE IN NET ASSETS NET ASSETS -BEGINNING NET ASSETS -ENDING The notes to the financial statements are an integral part of this statement.
CITY OF AUBURN, WASHINGTON STATEMENT OF ACTIVITIES FOR THE YEAR ENDED DECEMBER 31, 2010 Page 1 of 2 PROGRAM REVENUES 3 6
CITY OF AUBURN: 2010 CAFR BASIC FINANCIAL STATEMENTS 3 7 GOVERNMENTAL BUSINESS-TYPE ACTIVITIES ACTIVITY TOTAL $ (6,470,894) $ -$ (6,470,894) (21,366,143) -(21,366,143) (3,189,279) -(3,189,279)
(269,370) -( 269,370) (5,106,172) -(5,106,172) (371,087) -( 371,087) (351,343) -( 351,343) (1,809,322) -(1,809,322) (38,933,610) -(38,933,610) -315,659 315,659 -2,579,677 2,579,677 -1,174,756
1,174,756 -(654,208) ( 654,208) -(418,121) ( 418,121) -(426,029) ( 426,029) -2,571,734 2,571,734 $ (38,933,610) $ 2,571,734 $ (36,361,876) $ 1 4,766,470 $ -$ 14,766,470 1 5,657,081 -15,657,081
2 ,788,083 -2,788,083 8 ,886,964 -8,886,964 1 ,389,030 -1,389,030 4 ,622,138 -4,622,138 379,316 158,211 537,527 152,278 1,585,322 1,737,600 9,755 2,746 12,501 52,156 -52,156 1 ,463,444
$ (1,463,444) -5 0,166,715 282,835 50,449,550 1 1,233,105 2,854,569 14,087,674 3 71,188,427 182,238,880 553,427,307 $ 3 82,421,532 $ 185,093,449 $ 567,514,981 Page 2 of 2 CHANGES IN
NET ASSETS NET (EXPENSE) REVENUE AND
CITY OF AUBURN: 2010 CAFR BASIC FINANCIAL STATEMENTS MAJOR GOVERNMENTAL FUNDS General Fund The general fund accounts for all of the City's financial resources except those required by
statute or generally accepted accounting principles to be accounted for in another fund. As is the case with most municipalities, the general fund is the largest and most important accounting
entity of the City. As noted in the statements that follow, the general fund receives the bulk of its revenues from local taxes, followed by State shared revenues, service charges, and
other income. The general fund is accounted for on a modified accrual basis. Biennial budgets are adopted with appropriations lapsing at the end of each year of the biennium. Arterial
Street Fund This fund is supported by the State's one-half cent gas tax and is used for major street construction. Capital Improvement Projects Fund This fund accounts for major capital
acquisitions, and streets and parks construction projects. 3 8
CITY OF AUBURN: 2010 CAFR BASIC FINANCIAL STATEMENTS OTHER TOTAL GENERAL ARTERIAL CAPITAL GOVERNMENTAL GOVERNMENTAL FUND STREET IMPROVEMENT FUNDS FUNDS ASSETS: CASH AND CASH EQUIVALENTS
$ 1 2,520,151 $ 2 ,276,696 $ 5 ,159,076 $ 2 1,724,998 $ 4 1,680,921 INVESTMENTS 2 ,010,780 -2 ,005,700 -4 ,016,480 RECEIVABLES: TAXES 4 93,233 ---4 93,233 CUSTOMER ACCOUNTS 40,586 ---4
0,586 OTHER RECEIVABLES 2 ,125,260 --5 9,630 2 ,184,890 SPECIAL ASSESSMENTS ---6 09,281 6 09,281 INTERFUND RECEIVABLE (Note 5) --5 9,375 -5 9,375 LONG-TERM NOTES AND CONTRACTS --6 09,511
-6 09,511 DUE FROM OTHER GOVERNMENTAL UNITS 1 ,617,044 811,891 2 1,292 4 11,276 2 ,861,503 PREPAID EXPENSES ---4 ,320 4 ,320 TOTAL ASSETS 1 8,807,055 3 ,088,587 7 ,854,954 2 2,809,504
5 2,560,100 LIABILITIES AND FUND BALANCES: CURRENT PAYABLES 2 ,684,976 892,850 1 20,518 1 ,290,875 4 ,989,219 CUSTOMER DEPOSITS 2 53,324 ---2 53,324 OTHER LIABILITIES PAYABLE 2,369 ---2
,369 DEFERRED REVENUE 4 84,033 428,393 6 09,511 6 09,281 2 ,131,217 TOTAL LIABILITIES 3 ,424,701 1 ,321,243 7 30,029 1 ,900,156 7 ,376,129 FUND BALANCES: RESERVED FOR: DEBT SERVICE ---1
87,988 1 87,988 ENDOWMENT ---1 ,404,390 1 ,404,390 UNRESERVED, REPORTED IN: GENERAL FUND 1 5,382,354 ---1 5,382,354 SPECIAL REVENUE FUNDS -1 ,767,344 -1 3,719,574 1 5,486,918 CAPITAL
PROJECT FUNDS --7 ,124,925 5 ,464,680 1 2,589,604 PERMANENT FUND ---1 32,717 1 32,717 TOTAL FUND BALANCES 1 5,382,354 1 ,767,344 7 ,124,925 2 0,909,348 4 5,183,971 TOTAL LIABILITIES
AND FUND BALANCES $ 1 8,807,055 $ 3 ,088,587 $ 7 ,854,954 $ 2 2,809,504 $ 5 2,560,100 Total governmental fund balances as reported on this statement $ 4 5,183,971 Amounts reported for
governmental activities in the statement of net assets are different because: Capital assets used in governmental activities are not financial resources and therefore not reported in
the funds. 3 48,038,582 Other long-term assets are not available to pay for current-period expenditures and therefore are deferred in the funds. Prepaid expenses 1,312,257 Interest receivable
on investments 11,199 Unearned revenue beyond the city's 30-day measurable and available period 484,033 Deferred charges for bond issue costs 20,220 1 ,827,708 Internal service funds
are used by management to charge the cost of certain activities, such as insurance and fleet maintenance, to individual funds. The assets and liabilities of these internal service funds
are included in governmental 1 8,431,784 activities in the statement of net assets. Certain Joint Ventures activities do not use or provide current financial resources but increase net
assets. 6 ,177,127 Some liabilities are not due and payable in the current period and therefore are not reported in the funds. Bonds and loans payable (33,426,575) Interest payable (165,464)
Net pension asset 261,158 Net other postemployment obligations (2,068,840) Compensated absences payable (1,837,919) ( 37,237,640) Net assets of government activities as reported on the
statement of net assets $ 382,421,532 The notes to the financial statements are an integral part of this statement. CITY OF AUBURN, WASHINGTON BALANCE SHEET GOVERNMENTAL FUNDS DECEMBER
31, 2010 3 9
CITY OF AUBURN: 2010 CAFR BASIC FINANCIAL STATEMENTS OTHER TOTAL GENERAL ARTERIAL CAPITAL GOVERNMENTAL GOVERNMENTAL FUND STREET IMPROVEMENT FUNDS FUNDS REVENUES: TAXES: PROPERTY $ 12,669,811
$ -$ -$ 1,613,492 $ 14,283,303 RETAIL SALES & USE 15,509,476 --147,604 1 5,657,081 INTERFUND UTILITY 2,389,786 --398,298 2 ,788,083 UTILITY 7,392,757 --1,494,208 8 ,886,964 EXCISE 242,097
-1,080,384 6 6,549 1 ,389,030 OTHER ---65,234 6 5,234 LICENSES AND PERMITS 1,311,916 ---1 ,311,916 INTERGOVERNMENTAL 6,210,032 1,781,182 122,875 1,542,440 9 ,656,529 CHARGES FOR SERVICES
1,883,079 --1,190,089 3 ,073,168 FINES AND FORFEITURES 2,472,411 ---2 ,472,411 SPECIAL ASSESSMENTS ---43,502 4 3,502 INVESTMENT EARNINGS 162,938 5 ,308 89,408 129,236 3 86,890 MISCELLANEOUS
725,344 7 68 1,788,604 508,873 3 ,023,589 TOTAL REVENUES 50,969,647 1,787,258 3,081,270 7,199,524 6 3,037,699 EXPENDITURES: CURRENT: GENERAL GOVERNMENT 7,770,957 ---7 ,770,957 SECURITY
OF PERSONS AND PROPERTY 24,192,303 --405,683 2 4,597,986 PHYSICAL ENVIRONMENT 2,480,641 ---2 ,480,641 TRANSPORTATION 2,810,364 4,583,679 -2,660,391 1 0,054,434 ECONOMIC ENVIRONMENT 2,152,633
--445,216 2 ,597,849 HEALTH AND HUMAN SERVICES 568,911 ---5 68,911 CULTURE AND RECREATION 6,568,112 --95,768 6 ,663,881 DEBT SERVICE: PRINCIPAL 1,313,733 137,361 24,549,186 683,391 2
6,683,671 INTEREST AND OTHER COSTS 748,155 5 ,877 -1,021,714 1 ,775,746 CAPITAL OUTLAY 790,336 -1,890,220 5,805,827 8 ,486,382 TOTAL EXPENDITURES 49,396,144 4,726,918 26,439,406 11,117,990
9 1,680,457 EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES 1,573,503 (2,939,660) (23,358,135) ( 3,918,466) (28,642,758) OTHER FINANCING SOURCES (USES): INSURANCE RECOVERIES
125,642 --75,000 2 00,642 ISSUANCE OF DEBT 1,065,000 267,273 22,600,000 7,240,000 3 1,172,273 ISSUANCE OF REFUNDING BOND ---2,150,000 2 ,150,000 DEBT PREMIUM --105,624 200,220 3 05,844
PAYMENT TO ESCROW AGENT -REFUNDED BOND ---( 2,235,000) ( 2,235,000) TRANSFERS IN (Note 5) 1,501,913 3,199,068 475,880 4,265,865 9 ,442,727 TRANSFERS OUT (Note 5) ( 2,121,557) -( 2,469,137)
( 3,154,874) ( 7,745,568) TOTAL OTHER FINANCING SOURCES AND USES 570,999 3,466,341 20,712,367 8,541,211 3 3,290,918 NET CHANGE IN FUND BALANCES 2,144,502 526,681 ( 2,645,768) 4,622,745
4 ,648,159 FUND BALANCES -BEGINNING 13,237,852 1,240,663 9,770,693 16,286,604 4 0,535,812 FUND BALANCES -ENDING $ 15,382,354 $ 1,767,344 $ 7,124,925 $ 20,909,348 $ 45,183,971 The notes
to the financial statements are an integral part of this statement. CITY OF AUBURN, WASHINGTON STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE GOVERNMENTAL FUNDS FOR
THE YEAR ENDED DECEMBER 31, 2010 4 0
CITY OF AUBURN: 2010 CAFR BASIC FINANCIAL STATEMENTS Net change in fund balances per the Statement of Revenues, Expenditures and Changes in Fund Balance $ 4 ,648,159 Amount reported
as change in net assets in the Statement of Activities are different because: Governmental funds report capital outlays as expenditures. However, in the statement of activities the cost
of those assets is allocated over their estimated useful lives and reported as depreciation expense. This is the amount by which capital outlay ($15,790,230) exceeded depreciation ($10,515,954)
in the current period. 5,274,276 Certain Capital and Joint Venture activities do not use or provide current financial resources but increase net assets. 1,858,827 Governmental funds
report proceeds from sales of assets as other financing sources while the Statement of Activities reports only the gain or loss on sale of capital assets -Debt proceeds are reported
as financing sources in governmental fund and thus contribute to the change in fund balances. In In the government-wide statements, however, issuing debt increases long-term liabilities
in the statement of net assets and does not affect the statement of activities. (33,628,117) Revenues in the Statement of Activities that do not provide current financial resources are
not reported as revenues in the funds: Deferred revenue 484,033 Other (48,368) Amortization of bond premium 66,107 Investment interest receivable (2,362) 499,410 Developer contributions
and annexation of infrastructure assets are reported as revenue in the statement of activities, but do not provide current financial resources and are not reported as fund revenue. 4,275,043
Repayment of the principal of long-term debt consumes the current financial resources of governmental funds but has no effect on the net assets. 28,887,107 Internal service funds are
used by management to charge the costs of certain activities, such as insurance and fleet maintenance, to individual funds. The net revenue (expense) of certain internal service funds
is reported with governmental activities. 149,751 Some expenses reported in the Statement of Activities do not require the use of current financial resources and therefore are not reported
as expenditures in governmental funds. Amortization of debt issue costs (45,129) Amortization of prepaid expenses (109,355) Change in accrued interest payable (131,736) Change in net
pension obligation 122,683 Change in net other postemployment benefits (622,054) Change in compensated absences payable 54,238 (731,353) Change in net assets on the Statement of Activities
$ 1 1,233,105 The notes to the financial statements are an integral part of this statement. CITY OF AUBURN, WASHINGTON RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES OF GOVERNMENT FUNDS TO THE STATEMENT OF ACTIVITIES FOR THE YEAR ENDED DECEMBER 31, 2010 4 1
CITY OF AUBURN: 2010 CAFR BASIC FINANCIAL STATEMENTS FINAL VARIANCE WITH ORIGINAL AMENDED FINAL BUDGET BUDGET BUDGET ACTUAL POSITIVE (GAAP BASIS) (GAAP BASIS) RESULTS (NEGATIVE) REVENUES:
TAXES: PROPERTY $ 10,471,900 $ 12,357,309 $ 12,669,811 $ 312,502 RETAIL SALES & USE 21,315,400 17,111,800 15,509,476 ( 1,602,324) INTERFUND UTILITY 2,215,800 2,140,200 2,389,786 249,586
UTILITY 6,910,100 7,206,100 7,392,757 186,657 EXCISE 946,500 546,500 242,097 ( 304,403) LICENSES AND PERMITS 1,497,500 1,128,800 1,311,916 183,116 INTERGOVERNMENTAL 3,816,300 4,536,100
6,210,032 1,673,932 CHARGES FOR SERVICES 2,091,000 1,866,000 1,883,079 17,079 FINES AND FORFEITURES 2,729,700 2,107,400 2,472,411 365,011 INVESTMENT EARNINGS 250,000 170,000 162,938
( 7,062) MISCELLANEOUS 261,200 615,800 725,344 109,544 TOTAL REVENUES 52,505,400 49,786,009 50,969,647 1,183,638 EXPENDITURES: CURRENT: GENERAL GOVERNMENT 9,787,500 8,881,940 7,770,957
1,110,983 SECURITY OF PERSONS AND PROPERTY 27,955,100 26,751,250 24,192,303 2,558,947 PHYSICAL ENVIRONMENT 4,049,500 2,734,210 2,480,641 253,569 TRANSPORTATION 3,283,100 3,170,100 2,810,364
359,736 ECONOMIC ENVIRONMENT 2,879,000 2,632,835 2,152,633 480,202 HEALTH AND HUMAN SERVICES 645,800 637,000 568,911 68,089 CULTURE AND RECREATION 7,174,400 6,746,500 6,568,112 178,388
DEBT SERVICE 250,900 2,164,600 2,061,887 102,713 CAPITAL OUTLAY -790,336 790,336 -TOTAL EXPENDITURES 56,025,300 54,508,771 49,396,144 5,112,627 EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER)
EXPENDITURES (3,519,900) (4,722,762) 1,573,503 6,296,265 OTHER FINANCING SOURCES (USES): SALES OF CAPITAL ASSETS ----ISSUANCE OF DEBT -1,069,000 1,065,000 ( 4,000) INSURANCE RECOVERIES
-55,000 125,642 70,642 TRANSFERS IN (Note 5) 17,000 1,501,913 1,501,913 -TRANSFERS OUT (Note 5) (1,159,400) ( 2,325,377) ( 2,121,557) 203,820 TOTAL OTHER FINANCING SOURCES AND USES (1,142,400)
300,536 570,999 270,462 NET CHANGE IN FUND BALANCES (4,662,300) ( 4,422,226) 2,144,502 6,566,727 FUND BALANCES -BEGINNING 10,844,270 13,237,852 13,237,852 -FUND BALANCES -ENDING ENDING
$ 6,181,970 $ 8,815,626 $ 15,382,353 $ 6,566,727 The notes to the financial statements are an integral part of this statement. FOR THE YEAR ENDED DECEMBER 31, 2010 CITY OF AUBURN, WASHINGTON
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL GENERAL FUND 4 2
CITY OF AUBURN: 2010 CAFR BASIC FINANCIAL STATEMENTS 4 3 FINAL VARIANCE WITH ORIGINAL AMENDED FINAL BUDGET BUDGET BUDGET ACTUAL POSITIVE (GAAP BASIS) (GAAP BASIS) RESULTS (NEGATIVE)
REVENUES: TAXES: INTERGOVERNMENTAL $ 12,431,500 $ 8,278,200 $ 1,781,182 $ ( 6,497,018) INVESTMENT EARNINGS 20,000 16,000 5 ,308 ( 10,692) MISCELLANEOUS 1,315,000 240,000 7 68 ( 239,232)
TOTAL REVENUES 13,766,500 8,534,200 1,787,258 ( 6,746,942) EXPENDITURES: CURRENT: TRANSPORTATION 16,613,400 13,762,000 4,583,679 9,178,321 DEBT SERVICE PRINCIPAL 130,400 137,400 137,361
3 9 INTEREST AND OTHER COSTS 9 ,200 9 ,200 5 ,877 3 ,323 TOTAL EXPENDITURES 16,753,000 13,908,600 4,726,918 9,181,682 EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES (2,986,500)
(5,374,400) ( 2,939,660) 2,434,740 OTHER FINANCING SOURCES (USES): ISSUANCE OF DEBT -45,000 267,273 222,273 TRANSFERS IN (Note 5) 2,963,500 5,089,100 3,199,068 ( 1,890,032) TRANSFERS
OUT (Note 5) ----TOTAL OTHER FINANCING SOURCES AND USES 2,963,500 5,134,100 3,466,341 ( 1,667,759) NET CHANGE IN FUND BALANCES ( 23,000) ( 240,300) 526,681 766,981 FUND BALANCES -BEGINNING
383,062 1,240,663 1,240,663 -FUND BALANCES -ENDING $ 360,062 $ 1,000,363 $ 1,767,344 $ 766,981 The notes to the financial statements are an integral part of this statement. FOR THE YEAR
ENDED DECEMBER 31, 2010 CITY OF AUBURN, WASHINGTON STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL ARTERIAL STREET FUND
CITY OF AUBURN: 2010 CAFR BASIC FINANCIAL STATEMENTS 4 4
CITY OF AUBURN: 2010 CAFR BASIC FINANCIAL STATEMENTS MAJOR PROPRIETARY FUNDS ENTERPRISE FUNDS The City's enterprise funds are used to account for operations that are financed and operated
in a manner similar to private business operations. The goods and services these funds provide to the general public are primarily financed by service charges. Enterprise funds are self-supporting
and use the accrual method of accounting. Auburn has five major enterprise funds. The Water Fund This fund accounts for all maintenance, construction, and debt service requirements associated
with the water system. The Sanitary Sewer Fund This fund accounts for maintenance, construction, and debt requirements for Auburn's sanitary sewer system. The Storm Drainage Fund This
fund accounts for the maintenance, construction and debt service requirements of Auburn's storm drainage system. The Solid Waste Fund Garbage collection services for the City are accounted
for in this fund, supported almost entirely by garbage collection fees. Expenses include payment to the City's garbage contractor and other service charges. The Golf Course Fund Accounts
for services, maintenance, and operations associated with the Auburn Municipal Golf Course. 4 5
CITY OF AUBURN: 2010 CAFR BASIC FINANCIAL STATEMENTS GOVERNMENTAL NON-MAJOR TOTAL ACTIVITIES SANITARY STORM SOLID GOLF PROPRIETARY PROPRIETARY INTERNAL WATER SEWER DRAINAGE WASTE COURSE
FUNDS FUNDS SERVICE FUNDS ASSETS: CURRENT ASSETS: CASH AND CASH EQUIVALENTS $ 7 ,988,302 $ 8,178,622 $ 2 ,783,583 $ 5 45,441 $ 85,241 $ 1 ,243,466 $ 20,824,655 $ 1 3,547,334 INVESTMENTS
1 ,731,607 2,009,920 2 ,510,325 ---6,251,852 -RESTRICTED CASH: BONDS PAYMENTS 9 48,415 296,268 3 48,279 ---1,592,961 -CUSTOMER DEPOSITS 3 1,629 16,835 ---6 9,413 117,877 -OTHER 1 1,123,922
4,382,960 4 ,451,444 --19,958,326 -CUSTOMER ACCOUNTS 8 88,146 2,025,836 7 95,710 1 ,006,401 25,436 3 ,910 4,745,439 47,260 OTHER RECEIVABLES 7 15,867 14,217 4 ,627 ---734,710 -DUE FROM
OTHER GOVERNMENTAL UNITS --9 0,608 5 4,017 --144,625 34,136 INVENTORIES 2 26,378 7,414 7 ,880 --7 ,759 249,431 133,293 TOTAL CURRENT ASSETS 2 3,654,265 16,932,072 1 0,992,456 1 ,605,859
110,677 1 ,324,547 54,619,876 1 3,762,022 NONCURRENT ASSETS: LONG-TERM CONTRACTS AND NOTES NOTES -1,028,400 ---4 ,645 1,033,045 -CAPITAL ASSETS: LAND 8 97,971 1,695,023 5 ,686,254 -2
,229,636 3 ,996,179 14,505,063 -BUILDINGS AND EQUIPMENT 2 ,344,538 1,140,893 2 01,254 4 96,618 6 ,620,691 3 ,593,817 14,397,809 1 5,459,542 IMPROVEMENTS OTHER THAN BUILDINGS 8 6,437,929
73,495,451 4 4,739,930 -3 ,023,053 9 ,301,723 216,998,084 46,591 CONSTRUCTION IN PROGRESS 2 ,400,937 2,104,633 7 55,866 --1 5,100 5,276,536 -LESS: ACCUMULATED DEPRECIATION ( 36,367,787)
(17,962,959) ( 15,057,455) ( 317,834) (2,592,219) ( 5,813,244) (78,111,498) (9,631,659) TOTAL CAPITAL ASSETS (NET OF A/D) 5 5,713,588 60,473,041 3 6,325,849 1 78,783 9 ,281,160 1 1,093,574
173,065,995 5 ,874,475 TOTAL NONCURRENT ASSETS 5 5,713,588 61,501,441 3 6,325,849 1 78,783 9 ,281,160 1 1,098,219 174,099,039 5 ,874,475 TOTAL ASSETS 7 9,367,854 78,433,512 4 7,318,305
1 ,784,642 9 ,391,837 1 2,422,766 228,718,915 1 9,636,497 LIABILITIES: CURRENT LIABILITIES: CURRENT PAYABLES 8 02,944 473,770 3 33,818 8 30,169 47,550 6 1,996 2,550,246 904,258 CUSTOMER
DEPOSITS 3 1,629 16,835 ---6 9,413 117,877 5,025 INTERFUND PAYABLES ----59,375 -59,375 -LOANS PAYABLE-CURRENT 4 35,568 288,262 ----723,830 -EMPLOYEE LEAVE BENEFITS-CURRENT 1 52,012 73,325
1 22,244 2 0,136 37,158 1 8,010 422,885 110,194 REVENUE BONDS PAYABLE-CURRENT 2 14,600 -7 5,400 ---290,000 -GENERAL OBLIGATION BONDS PAYABLE-CURRENT ----205,000 1 00,000 305,000 -ACCRUED
INTEREST 7 52,503 309,091 2 72,879 ---1,334,472 -TOTAL CURRENT LIABILITIES 2 ,389,257 1,161,282 8 04,341 8 50,305 349,083 2 49,419 5,803,686 1 ,019,477 NONCURRENT LIABILITIES: DEFERRED
REVENUE 4 2,200 162,203 5 97,204 -74,722 4 ,645 880,974 -EMPLOYEE LEAVE BENEFITS 7 9,476 38,336 6 3,911 1 0,528 19,427 9 ,416 221,094 57,612 LOANS PAYABLE 4 ,017,063 4,108,241 ----8,125,304
-REVENUE BONDS PAYABLE 1 3,164,869 5,334,385 4 ,896,515 ---23,395,769 -GENERAL OBLIGATION BONDS PAYABLE ----3 ,738,076 1 ,588,188 5,326,264 -TOTAL OTHER NONCURRENT LIABILITIES 1 7,303,607
9,643,166 5 ,557,630 1 0,528 3 ,832,224 1 ,602,249 37,949,404 57,612 TOTAL LIABILITIES 1 9,692,863 10,804,448 6 ,361,971 8 60,833 4 ,181,307 1 ,851,668 43,753,090 1 ,077,089 NET ASSETS:
INVESTED IN CAPITAL ASSETS, NET OF RELATED DEBT 4 7,778,846 54,700,611 3 4,942,276 1 78,783 5 ,338,084 9 ,405,386 152,343,987 5 ,874,475 RESTRICTED FOR: DEBT SERVICE 2 ,174,980 720,768
8 00,751 ---3,696,499 -RATE STABILIZATION --4 10,629 ---410,629 -UNRESTRICTED 9 ,721,164 12,207,685 4 ,802,678 7 45,026 (127,555) 1 ,165,712 28,514,710 1 2,684,933 TOTAL NET ASSETS $
5 9,674,990 $ 67,629,064 4 0,956,334 $ 9 23,810 $ 5 ,210,529 $ 1 0,571,098 $ 184,965,825 $ 1 8,559,408 Adjustment to reflect the consolidation of internal service funds related to -enterprise
funds 127,624 Net assets of business-type activities $ 185,093,449 The notes to the financial statements are an integral part of this statement. CITY OF AUBURN, WASHINGTON STATEMENT
OF FUND NET ASSETS PROPRIETARY FUNDS DECEMBER 31, 2010 4 6
CITY OF AUBURN: 2010 CAFR BASIC FINANCIAL STATEMENTS GOVERNMENTAL NONMAJOR TOTAL ACTIVITIES SANITARY STORM SOLID GOLF ENTERPRISE PROPRIETARY INTERNAL WATER SEWER DRAINAGE WASTE COURSE
FUNDS FUNDS SERVICE FUNDS OPERATING REVENUES: CHARGES FOR SERVICES $ 9,100,699 $ 15,968,231 $ 6,441,726 $ 9 ,169,380 $ 1 ,361,003 $ 734,873 $ 42,775,912 $ 9,353,814 INTEREST -----1,381
1,381 -OTHER OPERATING REVENUE -272 272 -6 4,984 618,920 684,448 158,431 TOTAL OPERATING REVENUES 9,100,699 15,968,503 6,441,998 9 ,169,380 1 ,425,987 1,355,175 43,461,742 9,512,245
OPERATING EXPENSES: OPERATIONS & MAINTENANCE 3,560,195 12,666,971 1,727,711 8 ,338,847 1 ,122,268 624,621 28,040,613 7,028,219 ADMINISTRATION 2 ,557,897 1,992,048 2,428,345 7 36,227
1 40,147 751,411 8,606,074 618,493 DEPRECIATION/AMORTIZATION 2,116,352 1,372,282 1,088,529 1 9,963 3 36,319 307,487 5,240,931 1,451,582 OTHER OPERATING EXPENSES 1,055,120 1,283,759 585,743
7 99,393 4 6,877 10,292 3,781,184 -TOTAL OPERATING EXPENSES 9,289,563 17,315,060 5,830,328 9 ,894,429 1 ,645,610 1,693,812 45,668,802 9,098,293 OPERATING INCOME (LOSS) ( 188,864) ( 1,346,557)
611,670 ( 725,049) ( 219,623) (338,637) (2,207,060) 413,951 NON-OPERATING REVENUE (EXPENSE): INTEREST REVENUE 58,353 45,053 47,875 2 ,311 5 56 4,063 158,211 33,601 OTHER NON-OPERATING
REVENUES 775,827 504,300 172,791 7 0,841 -132,404 1,656,162 42,356 GAIN ON SALE OF CAPITAL ASSETS ----2 ,746 -2,746 9,755 INTEREST EXPENSE (753,316) ( 314,931) (271,964) -( 198,498)
(87,392) (1,626,101) -OTHER NON-OPERATING EXPENSES --(892,089) ---(892,089) -TOTAL NON-OPERATING REVENUE ( EXPENSE) 80,864 234,422 (943,387) 7 3,151 ( 195,197) 49,075 (701,072) 85,712
INCOME (LOSS) BEFORE CONTRIBUTIONS & TRANSFERS (108,001) ( 1,112,136) (331,717) ( 651,897) ( 414,819) (289,562) (2,908,132) 499,663 CAPITAL CONTRIBUTIONS 1,257,840 4,406,132 1,727,140
---7,391,111 107,114 TRANSFERS IN (Note 5) ----1 23,575 25,605 149,180 197,500 TRANSFERS OUT (Note 5) ( 55,790) ( 55,960) (59,580) ( 680) -(1,440,613) (1,612,623) (494,760) CHANGE IN
NET ASSETS 1 ,094,049 3,238,036 1,335,843 ( 652,577) ( 291,245) (1,704,570) 3,019,536 309,517 TOTAL NET ASSETS BEGINNING OF YEAR 58,580,941 64,391,028 39,620,491 1 ,576,387 5 ,501,774
12,275,668 181,946,289 18,249,891 TOTAL NET ASSETS END OF YEAR $ 59,674,990 $ 67,629,064 $ 40,956,334 $ 9 23,810 $ 5 ,210,529 $ 10,571,098 $ 184,965,825 $ 18,559,408 Change in net assets
from this statement 3,019,536 Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds (164,967) Change in net assets of business-type
activities $ 2,854,569 The notes to the financial statements are an integral part of this statement. CITY OF AUBURN, WASHINGTON STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET
ASSETS PROPRIETARY FUNDS FOR THE YEAR ENDED DECEMBER 31, 2010 4 7
CITY OF AUBURN: 2010 CAFR BASIC FINANCIAL STATEMENTS Page 1 of 2 GOVERNMENT NON-MAJOR ACTIVITIES SANITARY STORM SOLID GOLF ENTERPRISE INTERNAL WATER SEWER DRAINAGE WASTE COURSE FUND
TOTAL SERVICE FUNDS CASH FLOWS FROM OPERATING ACTIVITIES: CASH RECEIVED FROM USERS $ 9 ,048,677 $ 1 5,680,452 $ 6 ,379,932 $ 9 ,216,702 $ 1 ,427,458 $ 1 ,353,317 $ 4 3,106,539 $ 9 ,486,912
CASH PAID TO SUPPLIERS (2,734,248) (14,220,329) (2,410,509) (8,554,269) (450,034) (723,810) (29,093,198) (4,414,290) CASH PAID FOR TAXES (1,055,120) (1,283,759) (585,743) (799,393) (46,877)
(10,292) (3,781,184) (3,994) CASH PAID FOR INVENTORY (51,049) 8 46 3 ,951 --3 ,636 (42,617) (21,431) CASH PAID TO EMPLOYEES (2,946,423) (1,871,575) (2,347,148) (554,484) (807,069) (650,055)
(9,176,754) (2,899,128) OTHER CASH RECEIVED (PAID) 6 3,525 ---1 1,407 1 ,381 7 6,314 -NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES 2 ,325,361 (1,694,364) 1 ,040,483 (691,443) 1 34,887
(25,822) 1 ,089,100 2 ,148,068 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES: OPERATING GRANT RECEIVED -5 04,300 3 6,503 1 04,278 --6 45,080 -TRANSFERS IN ----1 23,575 2 5,605 1 49,180
1 97,500 TRANSFERS OUT (55,790) (55,960) (59,580) (680) -(1,440,613) (1,612,623) (494,760) NET CASH PROVIDED (USED) BY NONCAPITAL FINANCING ACTIVITIES (55,790) 4 48,340 (23,077) 1 03,598
1 23,575 (1,415,008) (818,363) (297,260) CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES: PROCEEDS FROM SALE OF EQUIPMENT -----7 90,336 7 90,336 7 7,734 PURCHASE OF CAPITAL
ASSETS (1,891,160) (1,768,099) (2,223,940) -(59,952) (115,590) (6,058,741) (582,929) CONTRIBUTED CAPITAL 4 13,488 2 49,153 3 79,325 ---1 ,041,965 -CAPITAL GRANTS --1 72,791 ---1 72,791
4 0,341 PROCEEDS FROM OTHER GOVERNMENTS -2 2,500 8 92,089 --1 32,117 1 ,046,706 -PROCEEDS FROM INSURANCE SETTLEMENT -------1 ,743 BOND ISSUANCE COSTS (47,840) (21,389) (17,895) ---(87,124)
-PRINCIPAL PAYMENT ON DEBT (639,068) (288,262) (71,500) -(190,000) (85,000) (1,273,830) -INTEREST PAYMENT ON DEBT (105,623) (20,045) (25,102) (64) (198,594) (80,143) (429,571) --DEBT
PROCEEDS 1 1,979,047 6 ,230,775 4 ,480,961 ---2 2,690,783 -NET CASH PROVIDED (USED) FOR CAPITAL AND RELATED FINANCING ACTIVITIES 9 ,708,844 4 ,404,632 3 ,586,728 (64) (448,546) 6 41,720
1 7,893,314 (463,112) CASH FLOW FROM INVESTING ACTIVITIES: PROCEEDS FROM SALE OF INVESTMENTS 3 ,004,773 -1 ,017,813 ---4 ,022,586 -PURCHASE OF INVESTMENTS (2,725,000) -(2,500,000) ---(5,225,000)
-INTEREST RECEIVED 5 6,284 5 8,570 3 7,444 2 ,311 5 56 4 ,350 1 59,515 3 3,601 NET CASH PROVIDED (USED) IN INVESTING ACTIVITIES 3 36,057 5 8,570 (1,444,743) 2 ,311 5 56 4 ,350 (1,042,899)
3 3,601 NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 1 2,314,472 3 ,217,177 3 ,159,390 (585,599) (189,528) (794,760) 1 7,121,152 1 ,421,296 CASH AND CASH EQUIVALENTS-BEGINNING
OF YEAR 7 ,777,796 9 ,657,507 4 ,423,916 1 ,131,040 2 74,769 2 ,107,639 2 5,372,666 1 2,126,038 CASH AND CASH EQUIVALENTS-END OF YEAR 2 0,092,267 12,874,685 7,583,306 545,441 85,241
1 ,312,879 42,493,818 13,547,334 CASH AT END OF YEAR CONSISTS OF: CASH AND CASH EQUIVALENTS 7 ,988,302 8 ,178,622 2 ,783,583 5 45,441 8 5,241 1 ,243,466 2 0,824,655 1 3,547,334 RESTRICTED
CASH-BOND PAYMENTS 9 48,415 2 96,268 3 48,279 ---1 ,592,961 -RESTRICTED CASH-CUSTOMER DEPOSITS 3 1,629 1 6,835 ---6 9,413 1 17,877 -RESTRICTED CASH-OTHER 1 1,123,922 4 ,382,960 4 ,451,444
---1 9,958,326 -TOTAL CASH $ 2 0,092,268 $ 12,874,685 $ 7,583,306 $ 545,441 $ 85,241 $ 1 ,312,879 $ 42,493,819 $ 13,547,334 The notes to the financial statements are an integral part
of this statement. CITY OF AUBURN, WASHINGTON STATEMENT OF CASH FLOWS PROPRIETARY FUNDS FOR THE FISCAL YEAR ENDED DECEMBER 31, 2010 4 8
CITY OF AUBURN: 2010 CAFR BASIC FINANCIAL STATEMENTS Page 2 of 2 GOVERNMENT NON-MAJOR ACTIVITIES SANITARY STORM SOLID GOLF ENTERPRISE INTERNAL WATER SEWER DRAINAGE WASTE COURSE FUND
TOTAL SERVICE FUNDS RECONCILIATION OF NET OPERATING INCOME TO NEW CASH PROVIDED BY OPERATING ACTIVITIES OPERATING INCOME (LOSS) $ (188,864) $ (1,346,557) $ 6 11,670 $ (725,049) $ (219,623)
$ (338,637) $ (2,207,060) $ 4 13,951 ADJUSTMENTS TO RECONCILE OPERATING INCOME TO NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES: DEPRECIATION 2 ,116,352 1 ,372,282 1 ,088,529 1 9,963
3 36,319 3 07,487 5 ,240,931 1 ,451,582 ASSET (INCREASES) DECREASES : ACCOUNTS RECEIVABLE (48,045) (286,414) (62,067) 4 7,322 1 ,472 -(347,732) (47,203) INVENTORY (51,049) 8 46 3 ,951
--3 ,636 (42,617) (21,431) LIABILITY INCREASES (DECREASES) : ACCOUNTS & VOUCHERS PAYABLE 3 98,178 (1,432,981) (586,802) (44,805) (1,720) (7,632) (1,675,762) 2 79,360 DEPOSITS PAYABLE
(3,977) (1,636) ---(476) (6,089) (700) WAGES & BENEFITS PAYABLE 1 1,598 (14,503) (10,385) 2 ,722 2 2 ,401 6 ,290 (1,877) 2 6,701 COMPENSATED ABSENCES PAYABLE 2 7,645 1 4,599 (4,415)
8 ,404 4 ,631 3 ,509 5 4,373 4 5,808 DEFERRED REVENUE ----1 1,407 -1 1,407 -TOTAL ADJUSTMENTS 2 ,514,226 (347,807) 4 28,812 3 3,605 3 54,510 3 12,815 3 ,296,161 1 ,734,116 NET CASH PROVIDED
(USED) BY OPERATING ACTIVITIES 2 ,325,361 (1,694,364) 1,040,482 (691,443) 134,887 (25,822) 1,089,100 2,148,068 SCHEDULE OF NONCASH INVESTING, CAPITAL AND FINANCING ACTIVITIES CAPITAL
ASSETS ACQUIRED BY CONTRIBUTED CAPITAL 8 44,352 4 ,156,979 1 ,347,815 ---6 ,349,146 1 07,114 INCREASE (DECREASE) IN FAIR VALUE OF INVESTMENT 6 ,607 (13,518) 1 0,326 ---3 ,415 -TOTAL
NON CASH INVESTING, CAPITAL AND FINANCING ACTIVITIES $ 8 50,959 $ 4,143,461 $ 1,358,141 $ -$ -$ -$ 6,352,561 $ 107,114 The notes to the financial statements are an integral part of this
statement. FOR THE FISCAL YEAR ENDED DECEMBER 31, 2010 CITY OF AUBURN, WASHINGTON STATEMENT OF CASH FLOWS PROPRIETARY FUNDS 4 9
CITY OF AUBURN: 2010 CAFR BASIC FINANCIAL STATEMENTS 5 0
CITY OF AUBURN: 2010 CAFR BASIC FINANCIAL STATEMENTS FIDUCIARY FUNDS Fiduciary funds are used to account for assets held by the City of Auburn as a trustee or agent for various individuals,
private organizations, and other governmental units. The Fire Relief and Pension Fund is accounted for on an accrual basis. The agency fund is custodial in nature; therefore, no annual
budget is adopted. TRUST FUNDS The Fire Relief and Pension Fund This fund accounts for the payment of administrative costs and benefits for retired firefighters (and beneficiaries) who
were employed prior to March 1, 1970. Primary revenue sources are general property tax allocations, fire insurance premium tax, and investment interest, in accordance with actuarial
recommendations. AGENCY FUNDS The Agency Fund This fund accounts for the funds over which the City is strictly a short-term custodian. 5 1
CITY OF AUBURN: 2010 CAFR BASIC FINANCIAL STATEMENTS FIRE RELIEF PENSION AGENCY TRUST FUND FUND ASSETS: CASH AND CASH EQUIVALENTS $ 2,697,371 $ 1,400,069 INVESTMENTS 88,249 -RECEIVABLES:
CUSTOMER ACCOUNTS -6,582 INTEREST 659 -DUE FROM OTHER GOVERNMENTAL UNITS -70,884 TOTAL ASSETS 2,786,279 1,477,535 LIABILITIES: CURRENT PAYABLES 6,097 369,568 DUE TO OTHER GOVERNMENTAL
UNITS -1,107,967 TOTAL LIABILITIES 6,097 1,477,535 NET ASSETS: HELD IN TRUST FOR PENSION BENEFITS AND OTHER PURPOSES $ 2,780,181 $ -The notes to the financial statements are an integral
part of this statement. DECEMBER 31, 2010 CITY OF AUBURN, WASHINGTON STATEMENT OF FIDUCIARY NET ASSETS FIDUCIARY FUNDS 5 2
CITY OF AUBURN: 2010 CAFR BASIC FINANCIAL STATEMENTS FIRE RELIEF PENSION TRUST FUND ADDITIONS: FIRE INSURANCE PREMIUMS-TRANSFERRED FROM GENERAL FUND $ 63,545 INVESTMENT EARNINGS 3 1,141
TOTAL ADDITIONS 9 4,686 DEDUCTIONS: BENEFIT PAYMENTS 128,651 PROFESSIONAL SERVICES 1 ,690 ADMINISTRATIVE EXPENSES 1 2,807 TOTAL DEDUCTIONS 143,147 CHANGE IN NET ASSETS ( 48,461) NET
ASSETS -BEGINNING 2,828,642 NET ASSETS -ENDING $ 2,780,181 The notes to the financial statements are an integral part of this statement. FOR THE YEAR ENDED DECEMBER 31, 2010 CITY OF
AUBURN, WASHINGTON STATEMENT OF CHANGES IN FIDUCIARY NET ASSETS FIDUCIARY FUNDS 5 3
CITY OF AUBURN: 2010 CAFR BASIC FINANCIAL STATEMENTS 5 4
CITY OF AUBURN: 2010 CAFR NOTES TO THE FINANCIAL STATEMENTS City of Auburn NOTES TO THE FINANCIAL STATEMENTS December 31, 2010 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES.....................
.......................... .56 A. REPORTING ENTITY.........................................................................................................56 B. BASIC FINANCIAL STATEMENTS............
...................................................................... . 56 C. MEASUREMENT FOCUS, BASIS OF ACCOUNTING, AND BASIS OF PRESENTATION ......................................................
........................................57 D. BUDGET AND BUDGETARY ACCOUNTING....................................................................60 E. ASSETS, LIABILITIES, AND FUND EQUITY............
.........................................................61 1. DEPOSITS AND INVESTMENTS ...............................................................................61 2. RECEIVABLES...............
.............................................................................................62 3. INTERFUND RECEIVABLES AND PAYABLES .........................................................62
4. AMOUNTS DUE FROM OTHER GOVERNMENTAL UNITS......................................62 5. INVENTORIES ...................................................................................................
.........62 6. RESTRICTED ASSETS...............................................................................................63 7. INTERFUND TRANSACTIONS............................................
.......................................63 8. CAPITAL ASSETS.......................................................................................................63 9. DEFERRED CREDITS/CHARGES
.............................................................................63 10. COMPENSATED ABSENCES ....................................................................................64
11. DEFERRED REVENUES ............................................................................................64 12. RESERVATIONS AND DESIGNATIONS OF FUND EQUITY .................................
...64 F. REVENUES, EXPENDITURES AND EXPENSES.............................................................64 G. ESTIMATES...............................................................................
........................................65 NOTE 2 – STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY..............................................65 NOTE 3 – DEPOSITS AND INVESTMENTS.......................
...............................................................66 NOTE 4 – PROPERTY TAXES...........................................................................................................68
NOTE 5 – INTERFUND ACTIVITY .....................................................................................................70 NOTE 6 – DUE FROM OTHER GOVERNMENTAL UNITS ........................
.......................................71 NOTE 7 – CAPITAL ASSETS AND DEPRECIATION ........................................................................73 NOTE 8 – CAPITAL LEASE OBLIGATION........
................................................................................. 74 NOTE 9 – LONG-TERM DEBT ..........................................................................................
.................75 NOTE 10 – PENSION PLANS ............................................................................................................79 NOTE 11 – OTHER POST EMPLOYMENT
BENEFITS.................................................................... 91 NOTE 12 – ASSOCIATION OF WASHINGTON CITIES EMPLOYEE BENEFIT TRUST..................
93 NOTE 13 – CONSTRUCTION COMMITMENTS................................................................................ 94 NOTE 14 – CEMETERY ENDOWED CARE FUND .........................................
..................................94 NOTE 15 – JOINT VENTURES /RELATED PARTY .........................................................................95 NOTE 16 – JOINTLY GOVERNED ORGANIZATION
/RELATED PARTY ....................................... 98 NOTE 17 – CONTINGENCIES AND LITIGATION ............................................................................. 98 NOTE
18 – RISK MANAGEMENT & INSURANCE ............................................................................ 98 NOTE 19 – SUBSEQUENT EVENT ...........................................................
........................................ 99 55
CITY OF AUBURN: 2010 CAFR NOTES TO THE FINANCIAL STATEMENTS NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The City of Auburn, King County, Washington, was incorporated in 1891.
It operates under the laws of the State of Washington applicable to a Non-Charter Code City under a Mayor/Council form of government. A full-time mayor and seven part-time council members
administer Auburn, all elected at-large to four-year terms. The City provides a range of municipal services authorized by state law, including water services, sanitary sewer collection,
solid waste collection, storm drainage, a general aviation airport, a municipal cemetery and a municipal golf course. The accounting and reporting policies of the City of Auburn, which
conform to Generally Accepted Accounting Principles (GAAP) for governments, are regulated by the Washington State Auditor’s Office. The City’s significant accounting policies are described
in the following notes. A. REPORTING ENTITY In accordance with the criteria set forth in Statement No. 14 of the Governmental Accounting Standards Board (GASB) the City’s Comprehensive
Annual Financial Report (CAFR) includes all funds controlled by the City. Joint Ventures -Based on the criteria of Governmental Accounting Standards Board (GASB) Statement No. 14 as
modified by GASB Statement No. 34, the Valley Communications Center and South Correctional Entity Facility (SCORE) are included in the accompanying government-wide statement of net assets
as a joint venture. (Please refer to Notes 9 and 15). Jointly Governed Organizations -The cities of Auburn, Algona and Pacific formed the Valley Regional Fire Authority (VRFA) effective
January 1, 2007. The VRFA is a separate municipal corporation of the State of Washington, organized as a regional fire protection service authority under RCW 52.26. The VRFA is not financially
accountable to the member cities, none of the participating cities has an ongoing financial interest in the VRFA, and the VRFA is not financially dependent upon any member city. The
VRFA imposes its own property tax levy and fire benefit charge. The government-wide financial statements consist of the government-wide statement of net assets and the government-wide
statement of activities. B. BASIC FINANCIAL STATEMENTS The City’s basic financial statements consist of government-wide financial statements and fund financial statements. The government-wide
financial statements, which include the statement of net assets and the statement of activities, summarize the entire operation of the City. The governmental fund financial statements,
which include the balance sheet, statement of revenues, expenditures and changes in fund balance, and statement of revenues, expenditures and changes in fund balance budget and actual
statement, provide a more detailed level of reporting. The proprietary fund financial statements, which include statement of net assets, statement of revenues, expenses, and changes
in fund net assets and statement of cash flows provide a more detailed level of reporting. The The government-wide financial statements report information on all of the non-fiduciary
activities of the City. For the most part, the effect of interfund activity has been eliminated from these statements. Because governmental activities are normally supported by taxes
and intergovernmental revenue, while business-type activities are 56
CITY OF AUBURN: 2010 CAFR NOTES TO THE FINANCIAL STATEMENTS generally supported through user fees and charges, governmental activities are reported separately from business-type activities
on all government-wide financial statements. The statement of activities demonstrates the degree to which the direct expenses of various functions and activities of the City are offset
by program revenues. Direct expenses are those that are clearly identifiable with a specific function or activity. Program revenues include 1) charges to customers or applicants who
purchase, use, or directly benefit from goods, services or privileges provided by a function or activity, and 2) grants and contributions that are restricted to meeting the operational
or capital requirements of a particular function or activity. Taxes and other items that are not properly included among function or activity revenues are instead reported as general
revenues. The City does not allocate indirect expenses to functions in the statement of activities. Separate financial statements are included for government funds, proprietary funds,
and fiduciary funds, even though fiduciary funds are excluded from the government-wide financial statements. Major individual governmental funds and major individual enterprise funds
are reported in separate columns in the fund financial statements. C. MEASUREMENT FOCUS, BASIS OF ACCOUNTING, AND BASIS OF PRESENTATION The accounts of the City are organized on the
basis of funds, each of which is considered a separate accounting entity. Each fund is accounted for with a separate set of self-balancing accounts that comprise its assets, liabilities,
fund equity, revenue, and expenditures or expenses, as appropriate. The City resources are allocated to, and accounted for in, individual funds according to the purpose for which they
are spent and how they are controlled. The basis of accounting refers to the timing of when revenues and expenditures or expenses are recognized in the accounts and reported in the financial
statements. The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary and pension
trust fund financial statements. Interfund services provided and used are not eliminated in the process of consolidation. Governmental fund financial statements are reported using the
current financial resources measurement focus and the modified accrual basis of accounting. The modified accrual basis of accounting is followed in all governmental and permanent funds
of the City. Under the modified accrual basis of accounting, revenues are recognized when measurable and available. Revenues are generally considered available if they are collected
within the current period or soon enough thereafter (30 days) to pay current liabilities. For derived tax revenues, such as sales tax and utility business and occupation taxes, revenues
are recognized in the period when the underlying exchange has occurred. For imposed non-exchange taxes, such as as property taxes, revenues are recognized when the use of resources is
permitted, or when resources are available. Grant revenue is recognized in the period in which the expenditure occurs and the eligibility requirements have been met. Non-exchange transactions,
such as contributions, are recognized when the donation eligibility requirements have been satisfied. Those specific major revenue sources accrued are: 57
CITY OF AUBURN: 2010 CAFR NOTES TO THE FINANCIAL STATEMENTS Property Taxes – King County and Pierce County collect property taxes and remit to the City daily or monthly. December collections
by each County, remitted in January, are recognized as revenues in current year even though received in the subsequent year since they are considered to be measurable and available.
Property taxes remaining uncollected at year-end are reported as “deferred revenue”, since they are not considered to be available. Sales Tax Revenues – The State of Washington collects
all sales taxes. Auburn’s portion is remitted to the City by the State monthly. The sales tax received in January is recognized as revenue in current year even though received in the
subsequent year because of when the underlying transaction occurred and the resources are considered to be measurable and available. Grant Revenues – On cost reimbursement, grant revenue
is recognized when the expenditure is incurred. Under the modified accrual basis, expenditures are recorded when the fund liability is incurred, except for the un-matured interest and
principal on general long-term debt, which is recognized when due, and for compensated absences which are recorded as expenditures when liquidated from expendable available fund resources.
Purchases of capital assets from governmental funds are reported as expenditures during the year incurred and the asset is capitalized and reported on the government-wide statement of
net assets. Long-term liabilities, including compensated absences not currently due and payable, are also reported on the government-wide statement of net assets. The accrual basis of
accounting is followed in all proprietary, agency, and pension trust funds. Under the accrual basis of accounting, revenues are recognized when earned and expenses are recorded when
incurred. The three broad fund categories and nine fund types presented in this report are described below: 1. GOVERNMENTAL FUND TYPES All governmental funds are accounted for on a spending
or ““financial flow” measurement focus. This means that only current assets and current liabilities generally are included on their balance sheets. Their reported fund balance (net current
assets) is considered a measure of “available spendable resources”. Governmental fund operating statements focus on measuring cash flows rather than net income; they present increases
(revenues and other financing sources) and decreases (expenditures and other financing uses) in net current assets. a. General fund – This fund is used to account for all financial resources
and transactions of the City not accounted for in another fund, as required. The general fund is always considered a major fund. b. Special Revenue funds – These funds are used to account
for the proceeds of specific revenue sources (other than major capital projects) that are legally restricted to expenditures for specified purposes. One special revenue fund is considered
major: the arterial street fund. This fund is supported by the State of Washington’s one-half cent gas tax and is used for major street construction. c. Debt Service funds – These funds
account for the accumulation of resources for, and the payment of, general long-term and special assessment debt 58
CITY OF AUBURN: 2010 CAFR NOTES TO THE FINANCIAL STATEMENTS principal, interest, and related costs. These funds also include the LID guarantee fund which provides financial security
for outstanding LID bonds. d. Capital Projects funds – These funds are used to account for financial resources to be used for the acquisition or construction of major capital facilities
other than those financed by proprietary funds. One capital project fund is considered major: the capital improvement projects fund. This fund accounts for major capital acquisitions,
and street and parks construction projects. e. Permanent funds – These funds are used to account for resources that are legally restricted to the extent that only earnings, and not principal,
may be used for purposes of supporting a specific City program. 2. PROPRIETARY FUND TYPES Financial statements for proprietary funds use the economic resources measurement focus and
the accrual basis of accounting. This means that all assets and all liabilities (whether current current or non-current) associated with their activity are included on their Statement
of Net Assets. Under the accrual basis of accounting, revenues are recognized when earned and expenses are recorded when incurred. The economic resources measurement focus is applied
in the determination of financial position, net income, and cash flow. Proprietary funds distinguish operating revenues and expenses from non-operating items. Operating revenues and
expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund’s principal ongoing operations. The principal operating revenue
of the City’s utility funds, other enterprise funds, and internal service funds are charges to customers for sales and services, vehicle and computer replacement, and insurance. Operating
expenses for enterprise funds and internal service funds include the cost of sales and services, administrative expenses, taxes, and depreciation on capital assets. All revenues and
expenses not meeting this definition are reported as non-operating revenues and expenses, or as capital contributions. Substantially all proprietary fund operating revenues are used
as security for revenue bonds. Pursuant to Statement No. 20 of the Governmental Accounting Standards Board (GASB), Accounting and Financial Reporting for Proprietary Funds and Other
Governmental Entities That Use Proprietary Fund Accounting, the City has applies all applicable GASB pronouncements as well as the following pronouncements issued on or before November
30, 1989, unless those pronouncements conflict with or contradict GASB pronouncements: FASB Statements and Interpretations, APB Opinion, and ARBs. In addition, the City applies all FASB
Statements and Interpretations issued after November 30, 1989, except for those that conflict with or contradict GASB pronouncements. a. Enterprise funds – These funds are used to account
for services to the general public where all or most of the costs, including depreciation, are to be financed or recovered from users of such services. Five enterprise funds are considered
major funds. Utilities provided to residents are accounted for in the water fund, sanitary sewer fund, storm drainage fund and the solid waste fund. The golf course fund is used to account
for business operations at the City’s municipal golf course. 59
CITY OF AUBURN: 2010 CAFR NOTES TO THE FINANCIAL STATEMENTS b. Internal Service funds – These funds are used to account for the financing of goods and services provided to other funds,
departments, or governments on a cost reimbursement basis. The City uses internal service funds to account for its fleet of vehicles, its maintenance and operation of facilities, the
Citywide provision of computer hardware and software services, and its insurance premiums. 3. FIDUCIARY FUND TYPES Fiduciary funds are used to account for assets held by the City in
a trustee capacity or as an agent for individuals, private organizations, other governments, and/or other funds. These include a Fire Relief and Pension Trust Fund and Agency Fund. Each
fiduciary fund is classified for accounting measurement purposes as either a governmental fund or a proprietary fund. The Fire Relief and Pension Trust Fund is accounted for on the accrual
basis in essentially the same manner as proprietary funds since capital management is critical. Based on actuarial recommendations, there are no employee or employer contributions to
the Fire Relief and Pension Plan. Pension benefits are recognized when due; plan administration costs are also recognized when incurred in this fund. The Agency Fund is custodial in
nature (assets equal liabilities) and does not involve a measurement of results of operations. D. BUDGET AND BUDGETARY ACCOUNTING The City of Auburn budgets in accordance with the Revised
Code of Washington (RCW) 35A.33 for the general and special revenue funds. For governmental funds, there are no substantial differences between the budgetary basis and generally accepted
accounting principles. Budgetary accounts are integrated in fund ledgers for all budgeted funds, but the financial statements include budgetary comparisons for the biennial budgeted
governmental funds only. Budgets established for proprietary and trust funds are “management budgets”, and are not legally required to be reported and, as such, are not reported in the
CAFR. The biennial budget is proposed by the Mayor and adopted by the City Council with legal budgetary control at the fund level; i.e., expenditures and other financing sources may
not exceed budgeted appropriations at the fund level. The Mayor may authorize transfers within funds; however, the City Council must approve by ordinance any amendments that increase
the total for the fund. Any unexpended appropriation balances lapse at the end of the fiscal year. The City prepares the biennial budget on the modified accrual basis, which conforms
to Generally Accepted Accounting Principles (GAAP). The CAFR includes budgetary comparisons for those governmental funds with legally adopted budgets. Budget amounts include the adopted
current year budget appropriations and any revisions made during the year. State law establishes the budget process and the time limits under which a budget must be developed. The City
follows the procedures outlined below to establish its biennial budget: 60
CITY OF AUBURN: 2010 CAFR NOTES TO THE FINANCIAL STATEMENTS 1. Sixty days prior to each odd numbered fiscal year, the Mayor submits to the City Council a preliminary budget for the biennium
commencing the following January 1st. The operating budget includes proposed expenditures and funding sources. 2. Public hearings are conducted at the Auburn City Council Meetings to
obtain taxpayer comments. 3. Prior to December 31st, the budget is legally enacted through passage of an ordinance. 4. The final operating budget as adopted is published and distributed
after adoption. Copies of the budget are made available to the public. ORIGINAL AND SUPPLEMENTAL APPROPRIATIONS Original Final Budget Revisions Budget Governmental funds General fund
$ 57,184,700 $ (350,552) $ 56,834,148 Total governmental funds 57,184,700 (350,552) 56,834,148 Special revenue funds: Local street 2 ,200,000 3,800 2,203,800 Arterial street 16,753,000
(2,844,400) 13,908,600 Hotel/motel tax 8 5,500 85,880 171,380 Arterial street preservation 1 ,500,000 105,000 1,605,000 Drug forfeiture fund 2 37,300 173,600 410,900 Local law enforcement
block grant 1 1,100 -11,100 Housing and community development 6 00,900 (6,500) 594,400 Recreation trails -44,000 44,000 Business improvement area 5 4,000 13,300 67,300 Cumulative reserve
-453,500 453,500 Mitigation fees 2 ,508,500 1 ,246,880 3,755,380 Total special revenue funds 23,950,300 (724,940) 23,225,360 Total budgeted funds $ 81,135,000 $ (1,075,492) $ 80,059,508
E. ASSETS, LIABILITIES, AND FUND EQUITY 1. DEPOSITS AND INVESTMENTS It is the City’s policy to invest all temporary cash surplus. At December 31, 2010, the Washington State Local Government
Investment Pool (LGIP) was holding $88,919,029 in short-term investments. This amount is classified on the Statement of Fund Net Assets as cash and cash equivalents. The interest on
these investments is prorated to the various funds based upon ownership of investments. For purposes of the Statement of Cash Flows, cash and cash equivalents includes cash on deposit
with financial institutions in both demand and time deposit accounts, and amounts invested in the Local Government Investment Pool, administered by the State Treasurer’s Office because
it is operated in a manner consistent with a Securities and Exchange Commission’s Rule 2a-7of the Investment Company Act of 1940. The State Finance Committee is the administrator of
the statute that created the pool and adopts appropriate rules. The State Treasurer’s Office is responsible for establishing the investment policy for the pool and reviews it annually.
Any proposed changes are reviewed by the LGIP Advisory Committee. The terms of the policy are designed to ensure the safety and liquidity of the funds deposited in the LGIP. 61
CITY OF AUBURN: 2010 CAFR NOTES TO THE FINANCIAL STATEMENTS The City, by state law, is authorized to purchase certificates of deposit issued by Washington State depositories that participate
in Washington Public Deposit Protection Commission (WPDPC), U.S. Treasury and Agency securities, banker’s acceptances, and repurchase agreements. The City purchases repurchase agreements
only from institutions that use authorized securities for collateral. The City of Auburn also has signed a “master repurchase agreement” with its primary bank, Key Bank. For purposes
of the statement of cash flows, all proprietary fund types and similar trust funds consider all highly liquid investments (including restricted assets) with maturity of three months
or less when purchased to be cash equivalents. Investments are recorded at fair value. Adjustments are made to cost for investments amortized over the period to maturity in accordance
with GASB Statement No. 31. The investment in the state investment pool is valued at the pool’s pool’s share price. 2. RECEIVABLES Taxes receivable consist of property taxes (see Note
4). Accrued interest receivable consists of amounts earned on notes and contracts at the end of the year. Customer accounts receivable consist of amounts owed by private individuals
or organizations for goods and services provided. Uncollectible amounts are considered immaterial and the direct write-off method is used. Special assessments are levied against certain
property owners and become liens against the property benefited by the improvement. Special assessments receivable consist of current assessments, which are due within one year, delinquent
assessments remaining unpaid after the due date, and deferred, uncollected assessments, which have been levied, but are not due within one year. Other receivables include utility taxes
due from private organizations and customer accounts receivable, which consist of amounts owed from private individuals or organizations for goods and services, including amounts owed
for which billings have not been prepared. Notes and contracts receivable consist of amounts owed on open accounts from private individuals or organizations for goods and services rendered.
3. INTERFUND RECEIVABLES AND PAYABLES These accounts include all interfund receivables and payables. A separate schedule of interfund activity is furnished in Note 5. 4. AMOUNTS DUE
FROM OTHER GOVERNMENTAL UNITS This account includes amounts due from other governments for grants, entitlements and charges for services. A schedule by fund of amounts due from other
governmental units is presented in Note 6. 5. INVENTORIES Inventories in the enterprise and internal service funds are valued at cost using the weighted average costing method. Governmental
fund types recognize the cost of 62
inventory items as expenditures when purchased. In governmental funds, materials and supplies remaining at year-end are immaterial and not included in inventory. 6. RESTRICTED ASSETS
There are three types of restricted assets: customer deposits, proceeds of revenue bonds issued by City utilities that are restricted by applicable bond ordinances to pay bond and construction
costs, and funds contributed by the Muckleshoot Indian Tribe that have been restricted for use in certain construction projects. 7. INTERFUND TRANSACTIONS During the course of normal
operations, the City has numerous transactions between City funds. Interfund services provided and used, such as buying goods and services, are recorded as revenues and expenditures.
Internal service fund billings are recorded as revenues in the equipment rental fund and as expenditures in the paying fund. Transfers between funds are included as “other financing
sources or uses”. 8. CAPITAL ASSETS Capital assets are recorded at historical cost when known or at estimated historical cost when actual costs are not known. Infrastructure, such as
roads, bridges and water mains, is reported in the applicable government or business-type activities columns in the government-wide statement of net assets. All infrastructure costs
have been calculated and are reported. Government-donated capital assets are stated at their market value on the date donated. Major outlays for capital assets and improvements are capitalized
as projects are constructed. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend asset lives are not capitalized. Capital assets
of enterprise and internal service funds are recorded at cost. The capital assets of the airport are carried at cost and include those acquired with capital contributed by the Federal
Government. Capital improvements financed by special assessments that provide capital assets to a government’s proprietary funds are capitalized on the fund’s balance sheet and are offset
by equity. Capital assets of all funds are depreciated, and are calculated on the straight-line method using estimated lives as follows: Asset Capitalization Threshold Depreciation Method
Estimated Useful Life Building $5,000 Straight-line 20 -50 years Other Improvements $5,000 Straight-line 10 -50 years Equipment/Machinery $5,000 Straight-line 2 -20 years Infrastructure
$5,000 Straight-line 25 -50 years Utility Plant $5,000 Straight-Line 25 -50 years At the inception of capital leases at the government fund reporting level, the net present value of
future minimum lease payments allocable to the capital asset is reflected as expenditures and an “other financing source” of an equal amount. 9. DEFERRED CREDITS/CHARGES Deferred charges
and credits include undistributed court receipts. 63
10. COMPENSATED ABSENCES City employees accrue vacation leave at a variable rate based on years of service. In general, employees are allowed to accumulate vacation leave up to what
would be earned in two years. Unaffiliated employees accrue sick leave at the rate of eight hours per month up to 960 hours. Sick leave accumulations over 960 hours at year-end are paid
at 25%. Sick leave is not paid upon termination except in some instances upon separation in good standing, where employees hired before 12/31/1984 can be reimbursed at their current
rate for unused sick leave up to a maximum of 960 hours, at a rate based on years of service. The City’s union contracts have varied sick leave accruals and payout options. In general,
non-exempt employees can accrue up to 80 hours of compensatory time. The City reports compensated absences as liabilities in the government-wide statement of net assets and in proprietary
funds. Vacation, compensatory time, and sick leave are calculated separately for each employee using the rules described above. The reporting format is in compliance with GASB statement
no. 16. Governmental funds recognize expenditures for vacation, sick, and compensatory time when paid. Proprietary and pension trust funds recognize the expense and accrue a liability
for vacation and sick leave pay as the leave is earned. All compensated absence liabilities include salary-related payments, where applicable. 11. DEFERRED REVENUES This account reflects
the amounts of taxes and other long-term receivables for which the revenue recognition criteria have not been met. It also reflects prepayments on accounts and grants received in advance.
12. RESERVATIONS AND DESIGNATIONS OF FUND EQUITY In governmental funds, reserves are used to indicate a portion of fund balance that is not appropriable for expenditure or is legally
segregated, and designations are used to indicate tentative managerial plans for financial resource utilization in a future period. In proprietary funds, net assets are generally restricted
in connection with restricted assets or for legal segregation. These restrictions are identified on the statement of net assets of each fund type. F. REVENUES, EXPENDITURES AND EXPENSES
Under the modified accrual basis of accounting: Charges for services, interest on investments, and rents generally are considered measurable and available when earned in governmental
funds. Taxes and federal or state entitlements or shared revenues that have been collected but not remitted by an intermediary collection agency to the City are considered measurable
and available. Special assessments are considered measurable and available when they become due. 64
Grants are considered measurable and available to the extent that expenditures have been made. Other intergovernmental revenues are considered measurable and available when earned. Interfund
revenues for goods and services are considered measurable and available when earned. Proceeds from sale or loss of capital assets are recognized as other financing sources. Revenues
from taxpayer-assessed taxes (i.e., sales tax), net of estimated refunds, are recognized when measurable and available to finance expenditures of the current period. All other revenues
are either not measurable or considered not available until collected. Expenditures are generally recognized when incurred, except for principal and interest on general long-term debt,
which are reported as expenditures when paid, and compensated absences, which are reported as expenditures when liquidated from expendable available financial resources. Under the accrual
basis of accounting: Revenues are recognized when earned and expenses are recognized when incurred. Contributions of capital in proprietary fund financial statements arise from internal
and external contributions of capital assets or from grants or outside contributions of resources restricted to capital acquisition and construction. Transfers between government and
business-type activities on the government-wide statement of activities are reported as general revenues. Transfers between funds reported in the governmental activities column are eliminated,
as are transfers between funds reported in the business-type activities column. G. ESTIMATES The preparation of the financial statements in conformity with accounting principles generally
accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results
may differ from those estimates. NOTE 2 – STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY There have been no material violations of finance-related legal or contractual provisions, and there
have been no expenditures exceeding legal appropriations in any of the funds of the City of Auburn. 65
NOTE 3 – DEPOSITS AND INVESTMENTS At December 31, 2010, the carrying amount of the City’s cash demand deposits with Key Bank totaled $9,819,632 while the bank balance was $10,270,604.
In addition, there was $10,000 in the Drug Forfeiture Fund to be used for enforcement purposes, and $7,800 in various petty cash and cashier change funds. Custodial Credit Risk. Custodial
credit risk is the risk associated with the failure of a depository financial institution. In the event of a depository financial institution’s failure, it is the risk that the City
would not be able to recover its deposits or collateralized securities that are in the possession of the outside parties. The City minimizes custodial credit risk by following the restrictions
set forth in state law. The Federal Deposit Insurance Corporation (FDIC) insures the City’s deposits up to $250,000. The Washington Public Deposit Protection Commission (WPDPC) (established
under Chapter 39.58 of the Revised Code of Washington) constitutes a multiple financial institution collateral pool. Pledged securities under the WPDPC collateral pool are held by the
WPDPC’s agent in the name of the collateral pool. As required by State law, all investments of the City’s funds are obligations of the U.S. Government, or deposits with Washington State
banks that participate in the WPDPC. Pension and permanent funds are not subject to these limitations. All temporary investments are stated at cost. Other investments are shown on the
balance sheet at fair value. Investments that were not at par value (cost) as of December 31, 2010 are reported at fair value. The fair value of the position in the state investment
pool is the same as the value of shares held by the City in the pool at amortized cost because it is operated in a manner consistent with the Securities and Exchange Commission’s Rule
2a-7 of the Investment Company Act of 1940. During 2010, the net increase in the fair value of investments being held for more than one year is $34,031 at year-end. As of December 31,
2010, the City had the following investments and maturities: Fair Less than 1 to 2 2 to 3 Greater than Investment Type Value 1 year years years 3 years State investment pool $ 88,919,028
$ 88,919,028 $ -$ -$ -US Treasuries $ 88,249 ---88,249 US Agencies $ 13,280,872 2 ,009,920 3,737,307 7,533,645 -$ 102,288,149 $ 90,928,948 $ 3,737,307 $ 7,533,645 $ 88,249 Reconciliation
to governmentwide statement of net assets: Total investments above $ 102,288,149 Plus: cash in checking and petty cash 9,887,946 Less: cash investments in fiduciary funds (4,185,689)
Total cash and investments, governmentwide statement of fund net assets $ 107,990,406 SCHEDULE OF INVESTMENTS BY MATURITIES AS OF DECEMBER 31, 2010 Investment maturities 66
CITY OF AUBURN: 2010 CAFR NOTES TO THE FINANCIAL STATEMENTS Governmental Business-Type Activities Activities Total Cash and Cash Equivalents $ 41,136,650 $ 2 0,824,655 $ 61,961,305 Cash
with Outside Agencies ---Investments 4,016,480 6 ,251,852 10,268,332 Temporarily Restricted: Cash and Cash Equivalents 12,819,932 2 1,669,164 34,489,096 Permanently Restricted: Cash
and Cash Equivalents 1,271,673 -1,271,673 $ 59,244,735 $ 48,745,671 $ 107,990,406 Reconciliation of Cash and Investments Government-Wide Statement of Fund Net Assets As of December 31,
2010 Interest Rate Risk Interest rate risk is the risk that changes in interest rates of debt investments will adversely affect the fair value of an investment. As a means of limiting
its exposure to fair value losses arising from rising interest rates, the City’s investment policy limits the maximum maturity of an investment to not greater than three years, unless
an investment is matched to an anticipated future cash flow. The segmented time distribution presented in the schedule of investments by maturity above indicates how the City has managed
its interest rate risk. Credit Risk Credit risk is the risk that an issuer or other counterparty to an investment will not fulfill its obligations. State law and the City’s investment
policy limits the instruments in which the City may invest. These include: 1. United States bonds. 2. United States certificates of indebtedness. 3. Bonds or warrants of the State of
Washington. 4. General obligation or utility revenue bonds or warrants of its own or of any other city or town in the State. 5. Its own bonds or warrants of a local improvement district
which are within the protection of the local improvement guaranty fund. 6. Savings or time accounts in designated public depositories. 7. Certificates, notes or bonds of United States
agencies, or corporations wholly owned by the United States. 8. Repurchase agreements. 9. Banker’s acceptances. 10. Federal Home Loan Bank notes and bonds, Federal Land Bank bonds, Federal
National Mortgage Association notes, debentures and guaranteed certificates of participation, or obligations of any other government sponsored corporation whose obligations are or may
be eligible as collateral for advances to member banks as determined by the Board of Governors of the Federal Reserve System or any portion thereof in investment deposits as defined
in RCW 39.8.010 secured by collateral in accordance with RCW 39.58. 11. Interim financing warrants of local improvement districts. 12. State Local Government Investment Pool. 67
CITY OF AUBURN: 2010 CAFR NOTES TO THE FINANCIAL STATEMENTS As of December 31, 2010, the City had investments in a limited number of investment instruments as follows: • Federal Home
Loan Bank bonds • Federal Home Loan Mortgage Corporation bonds • Federal National Mortgage Association • U.S. Treasuries • State Local Government Investment Pool With the exception of
the State Local Government Investment Pool, which is not rated, all of the investments above carried a rating of AAA by Standard & Poor’s rating service at December 31, 2010. Concentration
of Credit Risk Concentration of credit risk is the risk of loss attributed to the magnitude of an investment in a single issuer. The City diversifies its investments by security type
and institution. The investment policy states: “With the exception of US Treasury securities and the State Investment Pool, no more than 20% of the City’s total investment portfolio
will be invested in a single security type or with a single financial institution”. Other information information Effective 2002, the City has established arrangements with Bank of New
York for safekeeping of all investments. Below is a schedule of investments by fund type: SCHEDULE OF INVESTMENTS BY FUND CATEGORY AND INVESTMENT TYPE AS OF DECEMBER 31, 2010 State Investment
U.S. Pool Securities Total General Fund $ -$ 2,010,780 $ 2,010,780 Special Revenue Fund -3,012,540 3 ,012,540 Capital Project Funds -2,005,700 2 ,005,700 Enterprise Funds -6,251,852
6 ,251,852 Fiduciary Funds -88,249 8 8,249 Treasurer's Residual Funds 8 8,919,028 -88,919,028 Total $ 8 8,919,028 $ 1 3,369,121 $ 102,288,149 NOTE 4 – PROPERTY TAXES Property taxes received
during tax year 2010 were $14,169,811, including collection of prior year delinquent assessments. Property taxes assessed for collection in tax year 2010 were based on a regular tax
levy of $1.64 per $1,000 on a total 2009 assessed value of $7,702,255,337. For levy year 2010, to be received in 2011, the City’s regular tax levy is $1.82 per $1,000 on a 2010 assessed
valuation of $7,544,294,006, as of December 31, 2010, for a total regular levy of $14,381,889. State law provides that debt cannot be incurred in excess of the following percentages
of the taxable property of the City. 68
CITY OF AUBURN: 2010 CAFR NOTES TO THE FINANCIAL STATEMENTS 1.50% of assessed value without a vote of the people 2.50% of assessed value with a vote of the people The City has additional
authority to incur the following debt as a percentage of total valuation. 2.50% of assessed value with a vote of the people, indebtedness is for utilities 2.50% of assessed value with
a vote of the people, indebtedness is for parks, or open space development At December 31, 2010, the debt limits for the City were as follows: For Parks or Without General For Open Space
Item a Vote Purposes Utilities Development Total 1.50% 1.00% 2.50% 2.50% Capacity Legal Limit $ 113,164,410 $ 75,442,940 $ 188,607,350 $ 1 88,607,350 $ 565,822,050 Outstanding indebtedness
(70,960,079) ---( 70,960,079) Assets available 4,137,711 ---4,137,711 Margin available $ 46,342,042 $ 75,442,940 $ 188,607,350 $ 1 88,607,350 $ 498,999,683 With a Vote The County Treasurer
acts as an agent to collect property taxes levied in the county for all taxing authorities. Taxes are levied annually on January 1 on property values listed as of the prior August 31.
The County assesses property at 100% of fair value. A revaluation of all property is required at least once every four years and a physical inspection is required at least once every
six years. Property taxes levied by the County Assessor and collected by the County Treasurer become a lien on the first day of the levy year and may be paid in two installments if the
total amount exceeds $10. The first half of real property taxes is due on April 30 and the balance is due October 31. Delinquent taxes bear interest at the rate of 12% and are subject
to additional penalties if not paid as scheduled. At year-end, property taxes are recorded as a receivable with the portion not expected to be collected within 30 days offset by deferred
revenue. In the statement of net assets, this deferred revenue is referred to as “Unearned Revenue”. During the year, property tax revenues are recognized when cash is received. 1. The
Washington State Constitution limits the total regular property taxes to 1% of assessed valuation or $10 per $1,000 of value. If the taxes of all districts exceed this amount, each is
proportionately reduced until the total is at or below the 1% limit. 2. Washington State law in RCW 84.55.010 limits the annual growth of regular property taxes to the lesser of 1% or
the rate of inflation. With a vote of the majority of the voters within a taxing district, the 1% levy limitation can be “lifted” and additional taxes may be levied 3. The City may voluntarily
levy taxes below the legal limit. Special levies approved by the voters are not subject to the above limitations. Property taxes are recorded as receivable and offset by a deferred revenue
account when levied. Since state law allows for the sale of property for failure to pay taxes, no estimate of uncollectible taxes is made. 69
CITY OF AUBURN: 2010 CAFR NOTES TO THE FINANCIAL STATEMENTS NOTE 5 – INTERFUND ACTIVITY The next two tables summarize interfund activity during 2010. The first table details transfers
while the second lists loan activity. Transfers are legally authorized transfers of resources from a fund receiving revenue to the fund through which resources are to be expended. Funds
Transfer Out Transfer In Governmental funds: General fund $ 2,121,557 $ 1,501,913 Special revenue funds: City street fund --Local street fund -150,000 Arterial street fund -3,199,068
Arterial Street Preservation --Recreational trails 44,000 7,100 Cumulative reserve 331,559 650,277 Mitigation fees 2,633,609 -Total special revenue funds 3,009,168 4,006,446 Debt service
funds: 1998 library GO -299,300 2010 A&B Annex -710,800 2010 C&D Local Rev -182,390 LID guarantee 54,300 65,801 Special assessments 65,801 -Total debt service funds 120,101 1,258,291
Capital projects funds: Capital Improvement Major 2,469,137 475,880 Park construction Non Maj -1,911,696 Capital improvement projects Non Maj -288,500 Total capital projects funds 2,469,137
2,676,076 Proprietary funds: Water 55,790 -Sewer 55,960 -Storm drainage 59,580 -Solid waste 6 80 -Airport --Cemetery -25,605 Golf course -123,575 Commercial retail 1,440,613 -Total proprietary
funds 1,612,623 149,180 Internal service funds: Insurance -197,500 Facilities 450,000 -Information services 22,530 -Equipment rental 22,230 -Total internal service funds 494,760 197,500
Fiduciary funds: Fire pension & relief fund -63,545 Permanent funds: Cemetery endowed care 25,605 -Total $ 9,852,951 $ 9,852,951 All transfers are considered routine. Transfers 70
CITY OF AUBURN: 2010 CAFR NOTES TO THE FINANCIAL STATEMENTS Loans between funds are classified as interfund receivable and payable. Interfund loans do not affect total fund equity. Balance
Balance Due From Due To 1/1/2010 New Loans Repayments 12/31/2010 Golf course fund Capital projects fund $ 59,375 $ -$ -$ 59,375 Total interfund loans $ 59,375 $ -$ -$ 59,375 All interfund
loans are considered short-term cash loans. Interfund Loans NOTE 6 – DUE FROM OTHER GOVERNMENTAL UNITS As of December 31, 2010, the City had receivables due from other governmental units
as follows: 71
CITY OF AUBURN: 2010 CAFR NOTES TO THE FINANCIAL STATEMENTS Due from Other Governmental Units 2010 General Fund: City of Seattle -COPS /JAG Grants $ 41,815 Department of Justice -Bulletproof
Vest Program 7,569 King County -Olympic Leadership Grant 12,500 King County -Real Estate Excise Taxes 47,176 King County Sheriff's -Registered Sex Offender Grant 256 Muckleshoot Casino
335,525 Pierce County -Real Estate Excise Taxes 9,910 WA Auto Theft Prevention Authority -Auto Theft Prevention Grant 26,770 WA State Department of Justice -JAG Grant 98,706 WA State
Military Department -EMPG Grant 4,178 WA State Traffic Safety -Seat belt /DUI enforcement 4,652 WA State Treasurer -Sales Taxes 1,027,988 Total General Fund 1,617,044 Arterial Street
Fund: King County Department of Natural Resources & Parks 37,315 WA State Transportation Improvement Board -Arterial Street Imp. 54,769 Washington Utilities Transportation 20,000 WA
Dept. of Transportation -Arterial street imp. 699,808 Total Arterial Street Fund 811,891 Drug Forfeiture Fund: VNET 12,782 Housing & Community Development: U.S. Dept. of Housing -Community
Development Block Grant 38,266 Municipal Park Construction: WA Recreation and Conservation Office -Park Improvement Grants 326,201 Green River Community College 1,400 King County Water
and Land Resources -Open Space 32,627 Total Municipal Park Fund 360,228 General Government Capital Improvements Pierce County -Real Estate Excise Taxes 21,292 Storm Fund: City of Algona
-Street Sweeping 868 WA State Recreation & Conservation -Peasley Canyon Culvert 89,741 Total Storm Fund 90,608 Solid Waste Fund: Department of Ecology -ECPG Grant 2,731 King County -Local
hazardous waste management grant 20,120 King County -Waste reduction and recycling grant 31,166 Total solid waste fund 54,017 Facilities Fund: GSA Utilities 5,956 Information Services
Fund: GIS Support Services 2,024 Equipment Rental Fund: Wa State -Auction Sales 22,876 VRFA -Fuel Sales 3,280 Total Equipment Rental Fund 26,155 VSWAT Agency Fund: VSWAT -Participating
Cities 70,884 Total $ 3,111,148 Reconciliation to government-wide statement of net assets: Total above due from other governmental units $ 3,111,148 Amount due to fiduciary fund (70,884)
Total due from other governmental units, $ 3,040,264 Reported in Receivables $ 1,795,805 Reported in Restricted Assets 1,244,459 Total due from other governmental units, $ 3,040,264
government-wide statement of net assets government-wide statement of net assets 72
CITY OF AUBURN: 2010 CAFR NOTES TO THE FINANCIAL STATEMENTS NOTE 7 – CAPITAL ASSETS AND DEPRECIATION Capital asset activity for the year ended December 31, 2010 is as follows: Balance
Decreases/Balance 1/1/10 Increases Adjustments 12/31/10 Governmental activities: Capital assets, not being depreciated: Land $ 106,289,277 $ 1 ,868,987 $ (75,012) $ 108,083,252 Construction
in progress 16,481,837 1 3,981,035 (16,481,837) 13,981,035 Total capital assets, not being depreciated 122,771,114 1 5,850,022 (16,556,849) 122,064,287 Capital assets, being depreciated:
Buildings 23,476,321 3 1,459,156 (184) 54,935,293 Improvements other than buildings 13,968,419 1 44,048 -14,112,467 Machinery and equipment 18,416,402 1 ,330,341 (771,862) 18,974,881
Intangibles 25,398,057 2 46,813 (24,549,186) 1,095,684 Infrastructure 243,659,009 1 4,345,174 -258,004,183 Total capital assets being depreciated 324,918,208 4 7,525,532 (25,321,232)
347,122,508 Less: accumulated depreciation for: Buildings (8,697,379) (819,324) -(9,516,703) Improvements other than buildings (9,060,793) (453,174) -(9,513,967) Machinery and equipment
(11,256,356) (1,659,501) 704,156 (12,211,701) Intangibles (191,620) (244,042) 204,576 (231,086) Infrastructure (75,008,786) (8,791,496) -(83,800,282) Total accumulated depreciation (104,214,934)
(11,967,537) 908,732 (115,273,739) Total capital assets, being depreciated, net 220,703,274 3 5,557,995 (24,412,500) 231,848,769 Governmental activities capital assets, net $ 343,474,388
$ 51,408,017 $ (40,969,349) $ 353,913,056 Business-type activities: Capital assets, not being depreciated: Land $ 14,464,998 $ 4 0,065 $ -$ 14,505,063 Construction in progress 14,250,028
4 ,986,486 (13,959,978) 5,276,536 Total capital assets, not being depreciated 28,715,026 5 ,026,551 (13,959,978) 19,781,599 Capital assets, being depreciated: Buildings 12,303,238 1
01,749 (1,096,555) 11,308,432 Improvements other than buildings 196,984,977 2 0,369,338 (356,231) 216,998,084 Machinery and equipment 3,139,603 7 2,346 (122,573) 3,089,376 Total capital
assets being depreciated 212,427,818 2 0,543,433 (1,575,359) 231,395,892 Less: accumulated depreciation for: Buildings (4,173,877) (324,206) 306,219 (4,191,864) Improvements other than
buildings (66,795,994) (4,794,457) 356,229 (71,234,222) Machinery and equipment (2,594,257) (122,268) 31,115 (2,685,410) Total accumulated depreciation (73,564,128) (5,240,931) 693,563
(78,111,496) Total capital assets, being depreciated, net 138,863,690 1 5,302,502 (881,796) 153,284,396 Business-type activities capital assets, net $ 167,578,716 $ 20,329,053 $ (14,841,774)
$ 173,065,995 Schedule of Capital Asset Activity 73
CITY OF AUBURN: 2010 CAFR NOTES TO THE FINANCIAL STATEMENTS Depreciation/amortization expense was charged to functions/programs of the City as follows: Government activities: General
government $ 677,678 Public safety 398,056 Transportation 8,908,915 Culture and recreation 531,306 Capital assets held by the City's internal service funds are charged to the various
functions based on their usage of the assets 1,451,582 Total depreciation/amortization expense -governmental activities $ 11,967,537 Business-type activities: Water $ 2,116,352 Sanitary
sewer 1,372,282 Storm water 1,088,529 Solid waste 19,963 Golf course 336,319 Airport 216,961 Cemetery 57,198 Commercial retail 33,328 Total depreciation expense -business-type activities
$ 5,240,931 NOTE 8 – CAPITAL LEASE OBLIGATION The City has the following capital lease: One January 1, 2007 the City entered into a capital lease agreement for the Auburn Avenue Theater
facility for a 15 year term. The intent is for the City’s Parks, Arts and Recreation department to offer performances to the public, as well as make the facility available for shortterm
rentals. Lease Payable Theater 2011 $ 71,064 2012 71,064 2013 71,064 2014 71,064 2015 71,064 2016-2020 355,321 2021-2025 70,730 Total minimum lease payments 781,371 Less: Amounts representing
interest (176,686) Present value of future minimum lease payments $ 604,685 SCHEDULE OF FUTURE MINIMUM LEASE PAYMENTS As of December 31, 2010, the gross value of the Auburn Theater facility
acquired under the capital lease is $695,504. Monthly lease payments of $5,922 plus annual inflation adjustments based on the U.S. CPI-W index are payable through the end of the lease
period on December 1, 2021. Interest on the lease was imputed at 4.85 percent. 74
CITY OF AUBURN: 2010 CAFR NOTES TO THE FINANCIAL STATEMENTS NOTE 9 – LONG-TERM DEBT General Obligation Bonds are direct obligations of the City for which its full faith and credit are
pledged. Debt service for voter-approved issues, of which the City has none, would be funded by special property tax levies. Debt service for City Council authorized bonds, also called
councilmanic bonds, is funded from regular property taxes or general revenues, and is generally paid from debt service funds but can be paid from other designated funds. General Obligation
Bonds outstanding at year-end are as follows: • 1998 Limited Tax General Obligation bonds were issued for construction of a library to be owned and operated by the King County Rural
Library District. These bonds were advance refunded, in 2010, with the 2010A Limited Tax General Obligation bonds. • 2005 Limited Tax General Obligation refunding bonds were issued to
partially advance refund the 1999 Limited Tax Obligation bonds. 1999 Limited Tax General Obligation bonds were issued for construction of hangars at the Auburn Municipal Airport. The
2005 Limited Tax General Obligation refunding bonds mature in 2019 and are paid from the Airport fund. • 2006 Limited Tax General Obligation bonds were issued to fund improvements at
the Auburn Golf Course including a pro shop, clubhouse and related facilities, as well as construction of a columbarium at the Mountain View Cemetery. • 2006 Limited Tax General Obligation
(taxable) bonds were issued to construct and equip restaurant, banquet and related facilities for a restaurant facility to be located at the Auburn Golf Course clubhouse. • 2010A Limited
Tax General Obligation Improvement and Refunding bonds were issued to provide funds with which to (i) pay a portion of the costs of acquisition of certain condominium units to provide
city office space near City Hall (City Hall Annex) in lieu of the City Hall Annex lease and (ii) to partially advance refund the 1998 Limited Tax General Obligation bonds. The 1998 Limited
General Obligation bonds were issued for construction of a library to be owned and operated by the King County Rural Library District. On May 13, 2010, the City issued $2,150,000 in
General Obligation Bonds with an average interest rate of 4.07 percent to advance refund $2,235,000 of outstanding 1998 Limited Tax General Obligation Bonds with an average interest
rate of 4.27 percent. The net proceeds of $2,285,269 (after payment of $21,242 in underwriting fees and other issuance costs) were used to purchase U.S. government securities. Those
securities were deposited in an irrevocable trust with an escrow agent to provide for all future debt service payments on the 1998 Limited Tax General Obligation Bonds. As a result,
the 1998 Limited Tax General Obligation bonds are considered to be defeased and the liability for those bonds has been removed from the general long-term debt account group. The City
advance refunded the 1998 Limited Tax General Obligation bonds to reduce its total debt service payments over the next next nine years by $177,965 and to obtain an economic gain (difference
between the present values of the debt service payments on the old and new debt) of $162,947. • 2010B Limited Tax General Obligation Bonds (Taxable Build America Bonds – Direct Payment)
bonds were issued to provide funds with which to pay a portion of the costs of acquisition of certain condominium units to provide city office space near City Hall (City Hall Annex)
in lieu of the City Hall Annex lease. 75
CITY OF AUBURN: 2010 CAFR NOTES TO THE FINANCIAL STATEMENTS • 2010C Limited Tax General Obligation Bonds were issued to provide funds with which to pay portion of the downtown infrastructure
improvements in the City’s revitalization area. • 2010D Limited Tax General Obligation Bonds (Taxable Build America Bonds – Direct Payment) Bonds were issued to provide funds with which
to pay portion of the downtown infrastructure improvements in the City’s revitalization area. Revenue Bonds are payable from water, sewer and storm drainage utility revenues generated
by those enterprise funds. Special Assessment Bonds are not a direct responsibility of the City, but are funded from the collection of special assessment payments. Debt service principal
and interest costs are paid from the individual LID funds. The City is obligated for special assessment debt to the extent that it is required to establish an LID Guarantee fund for
the purpose of guaranteeing the payment of local improvement bonds in the event there are insufficient funds in the individual LID fund. State of Washington Public Works Trust Fund Loans
are a direct responsibility of the City. Auburn currently has six outstanding loans with a remaining total balance of $10,296,024. Five of the loans are being repaid from water and sewer
fund revenues over a 20-year period that begins upon each project completion. The other loan is being repaid from arterial street fund revenues over a 20-year period that began in 2009
upon project completion. Compensated Absences are paid by those funds that have employees. These are mostly payable by the General fund and enterprise funds. The following schedules
summarize the long-term debt transactions of the City for the year ended December 31, 2010. The first table summarizes all debt transactions for Auburn, while the second provides detailed
information on all long-term debt. Additional schedules reflect total annual debt service requirements to maturity and the reconciliation of debt by fund type. CHANGES IN LONG-TERM LIABILITES
SUMMARY General Obligation (1) Utility Special Assessment Employee Leave Benefit Employment Benefits Premium Deferred Charges Due To Other Governments Total Long-term debt payable 12/31/09
$ 3 4,685,579 $ 1 0,897,964 $ 36,827 $ 2 ,649,569 $ 1 ,446,786 $ 225,132 $ (229,481) $ 2 7,985,850 $ 7 7,698,226 Added 3 2,257,273 2 2,170,000 -1 ,819,401 1 ,670,548 826,626 (391,289)
1 ,065,000 5 9,417,559 Retired (27,851,277) ( 998,830) ( 36,827) (1,819,266) (1,048,494) ( 85,589) 6 6,413 ( 1,274,000) (33,047,869) Long-term debt payable 12/31/10 $ 3 9,091,575 $ 3
2,069,134 $ -$ 2 ,649,704 $ 2 ,068,840 $ 966,169 $ (554,357) $ 2 7,776,850 $ 1 04,067,916 (1) Includes capital leases 76
CITY OF AUBURN: 2010 CAFR NOTES TO THE FINANCIAL STATEMENTS DEBT SERVICE REQUIREMENT TO MATURITY Employee Leave Benefits YEAR Principal Interest Principal Interest Principal Interest
Principal Interest Principal Principal (1) Interest 2011 1 ,386,000 3 ,592,121 42,676 28,387 1,094,214 1 ,255,847 --1 ,739,997 4,262,887 4 ,876,355 2012 1 ,426,000 3 ,553,389 44,795
26,270 1,109,212 1 ,284,117 --9 0,971 2,670,978 4 ,863,776 2013 2 ,073,650 3 ,495,405 47,015 24,049 1,689,213 1 ,266,854 --9 0,971 3,900,849 4 ,786,308 2014 2 ,141,500 3 ,423,436 49,347
21,717 1,719,213 1 ,232,140 --9 0,971 4,001,031 4 ,677,293 2015 2 ,211,900 3 ,336,192 51,794 19,270 1,749,213 1 ,194,737 --9 0,971 4,103,878 4 ,550,199 2016 2 ,075,150 3 ,247,736 54,363
16,701 1,789,213 1 ,149,511 --9 0,971 4,009,697
4 ,413,948 2017 2 ,159,950 3 ,159,462 57,059 14,005 1,834,213 1 ,102,760 --9 0,971 4,142,193 4 ,276,227 2018 2 ,244,400 3 ,062,867 59,889 11,176 1,874,213 1 ,056,496 --9 0,971 4,269,473
4 ,130,539 2019 2 ,046,100 2 ,969,259 62,859 8,206 1,924,213 1 ,003,283 --9 0,971 4,124,143 3 ,980,748 2020 1 ,924,350 2 ,884,078 65,976 5,088 1,791,845 9 47,819 --9 0,971 3,873,142
3 ,836,985 2021 1 ,989,150 2 ,804,060 68,912 1,816 1,841,845 8 91,930 --9 0,969 3,990,876 3 ,697,806 2022 2 ,077,900 2 ,748,800 --1,659,759 8 19,626 ---3,737,659 3 ,568,426 2023 2 ,152,350
2 ,688,264 --1,678,645 7 45,909 ---3,830,995 3 ,434,173 2024 2 ,236,800 2 ,623,815 --1,728,645 6 69,907 ---3,965,445 3 ,293,722 2025 2 ,324,350 2 ,553,480 --1,670,801 5 91,074 ---3,995,151
3 ,144,554 2026 2 ,001,550 2 ,299,218 --1,720,801 5 09,950 ---3,722,351 2 ,809,168 2027 2 ,080,300 2 ,238,207 --1,605,383 4 15,265 ---3,685,683 2 ,653,472 2028 2 ,170,600 2 ,174,659
--1,665,383 3 17,324 ---3,835,983 2 ,491,983 2029 2 ,252,450 2 ,108,477 --1,650,000 2 15,545 ---3,902,450 2 ,324,022 2030 2 ,345,850 2 ,038,463 --1,720,000 1 10,011 ---4,065,850 2 ,148,474
2031 2 ,438,900 1 ,719,130 -------2,438,900 1 ,719,130 2032 2 ,546,950 1 ,641,860 -------2,546,950 1 ,641,860 2033 2 ,648,100 1 ,561,308 --------2,648,100 1 ,561,308 2034 2 ,757,350
1 ,477,270 -------2,757,350 1 ,477,270 2035 2 ,413,150 1 ,039,997 -------2,413,150 1 ,039,997 2036 2 ,510,500 9 48,575 -------2,510,500 9 48,575 2037 2 ,615,950 8 53,257 -------2,615,950
8 53,257 2038 2 ,724,500 7 53,836 -------2,724,500 7 53,836 2039 2 ,841,150 6 50,109 -------2,841,150 6 50,109 TOTALS $ 64,816,850 $ 6 7,646,730 $ 604,685 $ 176,685 $ 3 3,516,024 $ 1
6,780,105 $ -$ -$ 2 ,649,705 $ 101,587,264 $ 8 4,603,520 (1) $ 101,587,264 Principal debt service requirements to maturity 2,068,840 Other Post Employment Benefits 966,169 Premium (
554,357) Deferred Charges $ 104,067,916 Long Term Liabilities 12/31/2010 Obligation Bonds Obligation Bonds/Loans Assessments Long-Term Debt General Capital Lease Utility Special Total
77
CITY OF AUBURN: 2010 CAFR NOTES TO THE FINANCIAL STATEMENTS CHANGES IN LONG-TERM LIABILITIES Interest Maturity Original Principal Balance Balance Due Within Issue Name Rates Date Amount
Installments 12/31/09 Additions Reductions 12/31/10 One Year Governmental debt: General obligation bonds: LTGO Library 3.75-5.00% 12/1/2018 $ 4 ,000,000 $110,000 -$290,000 $ 2,235,000
$ -$ (2,235,000) -$ -LTGO 2010A (1) 2.00-4.50% 12/1/2018 4,385,000 $510,000 -$270,000 -4,385,000 (510,000) 3 ,875,000 690,000 LTGO 2010B (1) 3.27-6.24% 12/1/2039 2 0,365,000 $535,000
-$1,240,000 -20,365,000 -20,365,000 -LTGO 2010C (1) 2.00-4.00% 12/1/2014 920,000 $105,000 -$215,000 -920,000 (105,000) 8 15,000 195,000 LTGO 2010D (1) 3.27-6.19% 12/1/2034 6,320,000
$220,000 -$445,000 -6,320,000 -6 ,320,000 -Total general obligation bonds 3 5,990,000 2,235,000 31,990,000 (2,850,000) 3 1,375,000 885,000 Capital lease: Auburn Avenue Theater 4.85%
12/31/2021 695,504 $5,500 -$5,922 644,418 -(39,733) 6 04,685 42,676 Annex 7.30% 12/1/2039 2 4,549,182 $137,478 -$209,087 24,549,182 -(24,549,182) --Total capital leases 2 5,244,686 25,193,600
-(24,588,915) 6 04,685 42,676 Employee leave benefit: Compensated absences -2,059,963 1,377,217 (1,431,455) 2 ,005,725 1,317,112 Other Post Employment Benefits: LEOFF 1 -1,446,786 1,670,548
(1,048,494) 2 ,068,840 -Public Works Trust Fund loans: PWTF 2006(a) 0.50% 7/1/2010 163,713 $35,578 56,979 -(56,979) --PWTF 2008 0.50% 7/1/2028 1,527,273 $80,383 1,260,000 267,273 (80,383)
1 ,446,890 80,383 Total Public Works Trust Fund loans 1,690,986 1,316,979 267,273 (137,362) 1 ,446,890 80,383 Special assessment bonds: L.I.D. # 347 6.85% 5/1/2012 587,827 Varies 36,827
-(36,827) --Premium related to debt 28,239 305,844 (66,107) 2 67,976 -Deferred charges related to debt (29,161) (304,164) 45,129 ( 288,196) -Total governmental $ 6 3,513,499 $ 3 2,288,233
$ 3 5,306,718 $ (30,114,031) $ 37,480,920 $ 2,325,171 Business-type debt: General obligation bonds GO refunding bond 2005 (1) 4.00-4.50% 12/1/2019 1,375,000 $10,000 -$190,000 1,345,000
1,345,000 -(85,000) 1 ,260,000 100,000 GO bond 2006 (1) 4.25-5.00% 12/1/2025 3,275,000 $5,000 -$395,000 3,275,000 --3 ,275,000 -GO bond 2006 taxable 5.40-5.52% 12/1/2015 1,885,000 $45,000
-$245,000 1,320,000 -(190,000) 1 ,130,000 205,000 Total GO bonds 6,535,000 5,940,000 -(275,000) 5 ,665,000 305,000 Revenue bonds: Utility sys. refunding bonds 2005 (1) 3.00-4.75% 11/1/2016
2,765,000 $45,000 -$355,000 2,200,000 -(275,000) 1 ,925,000 290,000 Utilty sys bonds 2010 (1) 3.00-6.40% 12/1/2030 2 1,295,000 $575,000 -$1,720,000 -21,295,000 -21,295,000 -Total revenue
bonds 2 4,060,000 2,200,000 21,295,000 (275,000) 2 3,220,000 290,000 Employee leave benefit: Compensated absences -589,606 442,184 (387,811) 6 43,980 422,885 Public Works Trust Fund
loans: PWTF 1999 1.00% 7/1/2019 3,465,000 $182,368 1,823,684 -(182,368) 1 ,641,316 182,369 PWTF 2001 0.50% 7/1/2021 4,290,405 $227,086 2,725,027 -(227,086) 2 ,497,941 227,086 PWTF 2002
1.00% 7/1/2022 641,250 $26,114 339,488 -(26,114) 3 13,374 26,114 PWTF 2004 0.50% 7/1/2024 2,049,036 $107,844 1,617,660 -(107,844) 1 ,509,816 107,844 PWTF 2006(b) 0.50% 7/1/2026 3,325,000
$180,418 2,192,105 875,000 (180,418) 2 ,886,687 180,418 Total Public Works Trust Fund loans 1 3,770,691 8,697,964 875,000 (723,830) 8 ,849,134 723,831 Premium related to debt 196,893
520,782 (19,482) 6 98,193 -Deferred charges related to debt (200,320) (87,125) 21,284 ( 266,161) -Total proprietary $ 4 4,365,691 $ 1 7,424,143 $ 2 3,045,841 $ (1,659,838) $ 38,810,146
$ 1,741,716 Total all funds $ 1 07,879,190 $ 4 9,712,376 $ 5 8,352,559 $ (31,773,869) $ 76,291,066 $ 4,066,887 (1) Subject to federal arbitrage compliance rules. Due to Other Governments
• Valley Communication Center Public Development Authority issued General Obligation bonds in 2000 for a new dispatch facility. The City is contracted to pay 20% of the debt service
of these 15-year bonds that mature in 2015. This debt is paid from the General fund. The 2000 debt was paid in 2010 and new debt was issued. • SCORE Public Development Authority issued
General Obligation bonds in 2009 to acquire, construct, improve, and equip a consolidated correctional facility to be located in Des Moines, Washington. The city is contracted to pay
31% of the debt service of these 30 year bonds that mature in 2039. This debt is to be paid from the General fund. 78
CITY OF AUBURN: 2010 CAFR NOTES TO THE FINANCIAL STATEMENTS CHANGES IN LONG-TERM LIABILITIES DUE OTHER GOVERNMENTS Interest Maturity Original Principal Balance Balance Due Within Issue
Name Rates Date Amount Installments 12/31/09 Additions Reductions 12/31/10 One Year Governmental debt: General obligation bonds: Valley Communication Public Dev Auth 4.30-5.75% 12/1/2015
2,551,600 $96,600 -$233,000 1,253,000 -(1,253,000) --Valley Communication Public Dev Auth 3.00-4.00% 12/1/2015 1,065,000 $21,000 -$220,000 -1,065,000 (21,000) 1 ,044,000 196,000 SCORE
Public Development Authority 3.00-6.62% 1/1/2039 2 6,732,850 $593,650 -$1,601,150 26,732,850 --26,732,850 -Total general obligation bonds due other governments $ 3 0,349,450 $ 2 7,985,850
$ 1,065,000 $ (1,274,000) $ 27,776,850 $ 196,000 LONG-TERM LIABILITIES RECONCILIATION Enterprise Governmental Funds Funds 12/31/10 Liabilities payable from restricted assets: Revenue
bonds $ 2,102,537 $ -$ 2 ,102,537 Long-term bonds payable: General obligation bonds 5,665,000 31,375,000 3 7,040,000 Capital lease -604,685 604,685 Revenue bonds 21,117,463 -2 1,117,463
Special assessments with ---government commitment Public Works Trust Fund loans 8,849,134 1,446,890 1 0,296,024 Due to Other Governments -27,776,850 2 7,776,850 Employee leave benefits
643,980 2,005,725 2,649,704 Other Post Employment Benefits -2,068,840 2,068,840 Premium 698,193 267,976 966,169 Deferred charges (266,161) (288,196) (554,357) Total long-term debt $
3 8,810,146 $ 6 5,257,770 $ 1 04,067,916 Revenue Bond Debt Service Coverage The required debt service coverage for the 2010 utility revenue bonds and the 2005 utility revenue refunding
bonds is 1.25. Debt service coverage for 2010 was 3.62. The restricted rate stabilization fund for the utility revenue bonds was established to minimize the effect on rates of revenue
fluctuations between years. By transferring cash into this stabilization fund, adjusted net revenue available for debt service, as defined, would be decreased by the amount of the transfer.
Conversely, transfers out of the account would increase adjusted net revenue available for debt service. NOTE 10 – PENSION PLANS Substantially all City full-time and qualifying part-time
employees participate in one of the following statewide retirement systems administered by the Washington State Department of Retirement Systems, under cost-sharing multiple-employer
public employee defined benefit and defined contribution retirement plans. The Department of Retirement Systems (DRS), a department within the primary government of the State of Washington,
issues a publicly available comprehensive annual financial report (CAFR) that includes financial statements and required supplementary information for each plan. The DRS CAFR may be
obtained by writing to: Department of Retirement Systems, Communications Unit, P.O. Box 48380, Olympia, WA 98504-8380. The following disclosures are made pursuant to GASB Statement 27,
Accounting for Pensions by State and Local Government Employers, and Statement 50, Pension Disclosure, Disclosure, an Amendment of GASB Statement No. 25 and No. 27. 79
CITY OF AUBURN: 2010 CAFR NOTES TO THE FINANCIAL STATEMENTS Public Employees’ Retirement System (PERS) Plans 1, 2, and 3 Plan Description PERS is a cost-sharing multiple-employer retirement
system comprised of three separate plans for membership purposes: Plans 1 and 2 are defined benefit plans and Plan 3 is a defined benefit plan with a defined contribution component.
Membership in the system includes: elected officials; state employees; employees of the Supreme, Appeals, and Superior courts (other than judges currently in a judicial retirement system);
employees of legislative committees; community and technical colleges, college and university employees not participating in national higher education retirement programs; judges of
district and municipal courts; and employees of local governments. PERS participants who joined the system by September 30, 1977 are Plan 1 members. Those who joined on or after October
1, 1977 and by either, February 28, 2002 for state and higher education employees, or August 31, 2002 for local government employees, are Plan 2 members unless they exercise an option
to transfer their membership to Plan 3. PERS members joining the system on or after March 1, 2002 for state and higher education employees, or September 1, 2002 for local government
employees have the irrevocable option of choosing membership in either PERS Plan 2 or PERS Plan 3. The option must be exercised within 90 days of employment. An employee is reported
in Plan 2 until a choice is made. Employees who fail to choose within 90 days default to PERS Plan 3. Notwithstanding, PERS Plan 2 and Plan 3 members may opt out of plan membership if
terminally ill, with less than five years to live. PERS Plan 1 and Plan 2 defined benefit retirement benefits are financed from a combination of investment earnings and employer and
employee contributions. PERS retirement benefit provisions are established in Chapters 41.34 and 41.40 RCW and may be amended only by the State Legislature. PERS Plan 1 members are vested
after the completion of five years of eligible service. Plan 1 members are eligible for retirement at any age after 30 years of service, or at the age of 60 with five years of service,
or at the age of 55 with 25 years of service. The monthly benefit is two percent of the average final compensation (AFC) per year of service. AFC is the monthly average of the 24 consecutive
highest paid service credit months. The retirement benefit may not exceed 60 percent of AFC. This monthly benefit is subject to a minimum for PERS Plan 1 retirees who have 25 years of
service and have been retired 20 years, or who have 20 years of service and have been retired 25 years. Plan 1 members who retire from inactive status prior to the age of 65 may receive
actuarially reduced benefits. If a survivor option is chosen, the benefit is further reduced. A cost-of living allowance (COLA) is granted at age 66 based upon years of service times
the COLA amount, increased by three percent annually. Plan 1 members may also elect to receive an optional COLA that provides an automatic annual adjustment based on the Consumer Price
Index. The adjustment is capped at three percent annually. To offset the cost of this annual adjustment, the benefit is reduced. PERS Plan 1 provides duty and non-duty disability benefits.
Duty disability retirement benefits for disablement prior to the age of 60 consist of a temporary life annuity payable to the age of 60. The allowance amount is $350 a month, or two-thirds
of the monthly AFC, whichever is less. The benefit is reduced by any workers’ compensation benefit and is payable as long as the member remains disabled or until the member attains the
age of 60. A member with five years of covered employment is eligible for non-duty disability retirement. Prior to the age of 55, the allowance amount is 2 percent of the AFC for each
year of service reduced by 2 percent for each year that the member’s age is less than 55. The total benefit is limited to 60 percent of the AFC and is actuarially reduced to reflect
the choice of a survivor option. A cost-of living allowance is granted at age 66 based upon years of service times the COLA amount (based on the consumer Price 80
CITY OF AUBURN: 2010 CAFR NOTES TO THE FINANCIAL STATEMENTS Index), capped at 3 percent annually. To offset the cost of this annual adjustment, the benefit is reduced. PERS Plan 1 members
can receive credit for military service while actively serving in the military, if such credit makes them eligible to retire. Members can also purchase up to 24 months of service credit
lost because of an on-the-job injury. PERS Plan 2 members are vested after the completion of five years of eligible service. Plan 2 members are eligible for normal retirement at the
age of 65 with five years of service. The monthly benefit is 2 percent of the AFC per year of service. (AFC is the monthly average of the 60 consecutive highest-paid service months.)
PERS Plan 2 members who have at least 20 years of service credit and are 55 years of age or older are eligible for early retirement with a reduced benefit. The benefit is reduced by
an early retirement factor (ERF) that varies according to age, for each year before age 65. PERS Plan Plan 2 members who have 30 or more years of service credit and are at least 55 years
old can retire under one of two provisions: • With a benefit that is reduced by 3 percent for each year before age 65. • With a benefit that has a smaller (or no) reduction (depending
on age) that imposes stricter return-to-work rules. PERS Plan 2 retirement benefits are also actuarially reduced to reflect the choice, if made, of a survivor option. There is no cap
on years of service credit; and a cost-of-living allowance is granted (based on the Consumer Price Index), capped at 3 percent annually. The surviving spouse or eligible child or children
of a PERS Plan 2 member who dies after leaving eligible employment having earned ten years of service credit may request a refund of the member’s accumulated contributions. Effective
July 22, 2007, said refund (adjusted as needed for specified legal reductions) is increased from 100 percent to 200 percent of the accumulated contributions if the member’s death occurs
in the uniformed service to the United States while participating in Operation Enduring Freedom or Persian Gulf, Operation Iraqi Freedom. PERS Plan 3 has a dual benefit structure. Employer
contributions finance a defined benefit component and member contributions finance a defined contribution component. The defined benefit portion provides a monthly benefit that is 1
percent of the AFC per year of service. (AFC is the monthly average of the 60 consecutive highest-paid service months.) Effective June 7, 2006, PERS Plan 3 members are vested in the
defined benefit portion of their plan after ten years of service; or after five years of service, if twelve months of that service are earned after age 44; or after five service credit
years earned in PERS Plan 2 prior to June 1, 2003. Plan 3 members are immediately vested in the defined contribution portion of their plan. Vested Plan 3 members are eligible for normal
retirement at age 65, or they may retire early with the following conditions and benefits: • If they have at least ten service credit years and are 55 years old, the benefit is reduced
by an ERF that 4 varies with age, for each year before age 65. 5 • If they have 30 service credit years and are at least 55 years old, they have the choice of a benefit that is 6 reduced
by 3 percent for each year before age 65; or a benefit with a smaller (or no) reduction factor 7 (depending on age) that imposes stricter return-to-work rules. 81
CITY OF AUBURN: 2010 CAFR NOTES TO THE FINANCIAL STATEMENTS PERS Plan 3 defined benefit retirement benefits are also actuarially reduced to reflect the choice, if made, of a survivor
option. There is no cap on years of service credit and Plan 3 provides the same cost-of-living allowance as Plan 2. PERS Plan 3 defined contribution retirement benefits are solely dependent
upon the results of investment activities. The defined contribution portion can be distributed in accordance with an option selected by the member, either as a lump sum or pursuant to
other options authorized by the Director of the Department of Retirement Systems. PERS Plan 2 and Plan 3 provide disability benefits. There is no minimum amount of service credit required
for eligibility. The Plan 2 monthly benefit amount is 2 percent of the AFC per year of service. For Plan 3, the monthly benefit amount is 1 percent of the AFC per year of service. These
disability benefit amounts are actuarially reduced for each year that the member’s age is less than 65, and to 23 reflect the choice of a survivor option. There is no cap on years of
service credit, and a cost-of-living allowance is granted (based on the Consumer Price Index) capped at 3 percent annually. PERS Plan 2 and Plan 3 members may have up to ten years of
interruptive military service credit; five years at no cost and five years that may be purchased by paying the required contributions. Effective July 24, 2005, a member who becomes totally
incapacitated for continued employment while serving the uniformed services, or a surviving spouse or eligible children, may apply for interruptive military service credit. Additionally,
PERS Plan 2 and Plan 3 members can also purchase up to 24 months of service credit lost because of an on-the-job injury. PERS members may also purchase up to five years of additional
service credit once eligible for retirement. This credit can only be purchased at the time of retirement and can be used only to provide the member with a monthly annuity that is paid
in addition to the member’s retirement benefit. Beneficiaries of a PERS Plan 2 or Plan 3 member with ten years of service who is killed in the course of employment receive retirement
benefits without actuarial reduction, if the member was not at normal retirement age at death. This provision applies to any member killed in the course of employment, on or after June
10, 2004, if found eligible by the Department of Labor and Industries. A one-time duty-related death benefit is provided to the estate (or duly designated nominee) of a PERS member who
dies in the line of service as a result of injuries sustained in the course of employment, or if the death resulted from an occupational disease or infection that arose naturally and
proximately out of said member’s covered employment, if found eligible by the Department of Labor and Industries. Judicial Benefit Multiplier Beginning January 1, 2007 through December
31, 2007, judicial members of PERS were given the choice to participate in the Judicial Benefit Multiplier Program (JBM), enacted in 2006. Justices and judges in PERS Plan 1 and 2 were
able to make a one-time irrevocable election to pay increased contributions that would fund a retirement benefit with a 3.5 percent multiplier. The benefit would be capped at 75 percent
of average financial compensation. Judges in PERS Plan 3 could elect a 1.6 percent of pay per year of service benefit, capped at 37.5 percent of average compensation. 82
CITY OF AUBURN: 2010 CAFR NOTES TO THE FINANCIAL STATEMENTS Members who choose to participate in JBM would: accrue service credit at the higher multiplier beginning with the date of
their election, be subject to the benefit cap of 75 percent of average financial compensation, pay higher contributions, stop contributing to the Judicial Retirement Account (JRA), and
be given the option to increase the multiplier on past judicial service. Members who did not choose to participate would: continue to accrue service credit at the regular multiplier;
continue to participate in JRA, if applicable; never be a participant in the JBM Program; and continue to pay contributions at the regular PERS rate. Newly elected or appointed justices
and judges who chose to become PERS members on or after January 1, 2007, or who had not previously opted into PERS membership, were required to participate in the JBM Program. Members
required into the JBM program would: return to prior PERS Plan if membership had previously been established; be mandated into Plan 2 and not have a Plan 3 transfer choice, if a new
PERS member; accrue the higher multiplier for all judicial service; not contribute to JRA; and not have the option to increase the multiplier for past judicial service. There are 1,189
participating employers in PERS. Membership in PERS consisted of the following as of the latest actuarial valuation date for the plans of June 30, 2009: Retirees and Beneficiaries Receiving
Benefits 74,857 Terminated Plan Members Entitled to but not yet Receiving Benefits 28,074 Active Plan Members Vested 105,339 Active Plan Members Non-vested 53,896 Total 262,166 Funding
Policy Each biennium, the state Pension Funding Council adopts Plan 1 employer contribution rates, Plan 2 employer and employee contribution rates, and Plan 3 employer contribution rates.
Employee contribution rates for Plan 1 are established by statute at 6 percent for state agencies and local government unit employees, and at 7.5 percent for state government elected
officials. The employer and employee contribution rates for Plan 2 and the employer contribution rate for Plan 3 are developed by the Office of the State Actuary to fully fund Plan 2
and the defined benefit portion of Plan 3. All employers are required to contribute at the level established by the Legislature. Under PERS Plan 3, employer contributions finance the
defined benefit portion of the plan, and member contributions finance the defined contribution portion. The Director of the Department of Retirement Systems sets Plan 3 employee contribution
rates. Six rate options are available ranging from 5 to 15 percent; two of the options are graduated rates dependent on the employee’s age. As a result of the implementation of the Judicial
Benefit Multiplier Program in January 2007, a second tier of employer and employee rates was developed to fund, along with investment earnings, the increased retirement benefits of those
justices and judges that participate in the program. The methods used to determine the contribution requirements are established under state statute in accordance with chapters 41.40
and 41.45 RCW. The required contribution rates expressed as a percentage of current year covered payroll, as of December 31, 2010, were as follows: Members not participating in JBM:
PERS Plan 1 PERS Plan 2 PERS Plan 3 Employer* 5.31%** 5.31%** 5.31%*** Employee 6.00%**** 3.90%**** ***** 83
CITY OF AUBURN: 2010 CAFR NOTES TO THE FINANCIAL STATEMENTS * The employer rates include the employer administrative expense fee currently set at 0.16%. ** The employer rate for state
elected officials is 7.89% for Plan 1 and 5.31% for Plan 2 and Plan 3. *** Plan 3 defined benefit portion only. **** The employee rate for state elected officials is 7.50% for Plan 1
and 3.90% for Plan 2. ***** Variable from 5.0% minimum to 15.0% maximum based on rate selected by the PERS 3 member. Members participating in JBM: PERS Plan 1 PERS Plan 2 PERS Plan 3
Employer* 5.31% 5.31% 5.31%** Employee 12.26% 9.75% 7.50%*** * The employer rates include the employer administrative expense fee currently set at 0.16%. ** Plan 3 defined benefit portion
only. *** Minimum rate. Both the City of Auburn and the employees made the required contributions. The City’s required contributions for the years ended December 31 were as follows:
PERS Plan 1 PERS Plan 2 PERS Plan 3 2010 $21,906 $845,629 $181,993 2009 $49,565 $1,167,042 $263,837 2008 $54,719 $1,173,956 $238,108 The employer contribution rate for the City was 8.31%
in 2008, 5.31% in 2009 and 2010. Law Enforcement Officers’ and Fire Fighters’ Retirement System (LEOFF) Plans 1 and 2 Plan Description LEOFF is a cost-sharing multiple-employer retirement
system comprised of two separate defined benefit plans. LEOFF members who joined the system by September 30, 1977 are Plan 1 members. Those who joined on or after October 1, 1977 are
Plan 2 members. Membership in the system includes all full-time, fully compensated, local law enforcement officers and firefighters and, as of July 24, 2005, those emergency medical
technicians who were given the option and chose LEOFF Plan 2 membership. LEOFF membership is comprised primarily of non-state employees, with Department of Fish and Wildlife enforcement
officers, who were first included prospectively effective July 27, 2003, being an exception. Effective July 1, 2003, the LEOFF Plan 2 Retirement Board was established by Initiative 790
to provide governance of LEOFF Plan 2. The Board’s duties include adopting contribution rates and recommending policy changes to the Legislature for the LEOFF Plan 2 retirement plan.
LEOFF defined benefit retirement benefits are financed from a combination of investment earnings, employer and employee contributions, and a special funding situation in which the state
pays through state legislative appropriations. LEOFF retirement benefit provisions are established in Chapter 41.26 RCW and may be amended only by the State Legislature. 84
CITY OF AUBURN: 2010 CAFR NOTES TO THE FINANCIAL STATEMENTS LEOFF Plan 1 members are vested after the completion of five years of eligible service. Plan 1 members are eligible for retirement
with five years of service at the age of 50. The benefit per year of service calculated as a percent of final average salary (FAS) is as follows: 20 or more years 10 but less than 20
years 5 but less than 10 years 1.5% 1.0% Term of Service Percent of Final Average Salary 2.0% The FAS is the basic monthly salary received at the time of retirement, provided a member
has held the same position or rank for 12 months preceding the date of retirement. Otherwise, it is the average of the highest consecutive 24 months’ salary within the last ten years
of service. A Cost-of-living allowance is granted (based on the Consumer Price Index). LEOFF Plan 1 provides death and disability benefits. Death benefits for survivors of Plan 1 members
on active duty consist of the following: (1) If eligible spouse, 50 percent of the FAS, plus 5 5 percent of FAS for each eligible surviving child, with a limitation on the combined allowances
of 60 percent of the FAS; or (2) If no eligible spouse, eligible children receive 30 percent of FAS for the first child plus 10 percent for each additional child, subject to a 60 percent
limitation of FAS, divided equally. A one-time duty-related death benefit is provided to the estate (or duly designated nominee) of a LEOFF Plan 1 member who dies as a result of injuries
or illness sustained in the course of employment, if found eligible by the Department of Labor and Industries. The LEOFF Plan 1 disability allowance is 50 percent of the FAS plus 5 percent
for each child up to a maximum of 60 percent. Upon recovery from disability before the age of 50, a member is restored to service with full credit for service while disabled. Upon recovery
after the age of 50, the benefit continues as the greater of the
member’s disability allowance or service retirement allowance. LEOFF Plan 1 members may purchase up to five years of additional service credit once eligible for retirement. This credit
can only be purchased at the time of retirement and can be used only to provide the member with a monthly annuity that is paid in addition to the member’s allowance. LEOFF Plan 2 members
are vested after the completion of five years of eligible service. Plan 2 members may retire at the age of 50 with 20 years of service, or at the age of 53 with five years of service,
with an allowance of two percent of the FAS per year of service. The FAS is based on the highest consecutive 60 months. Plan 2 members who retire prior to the age of 53 receive reduced
benefits. Benefits are actuarially reduced for each year that the benefit commences prior to age 53 and to reflect the choice of a survivor option. If the member has at least 20 years
of service and is age 50, the reduction is three percent for each year prior to age 53. A cost-of-living allowance is granted (based on the Consumer Price Index), capped at three percent
annually. LEOFF Plan 2 provides disability benefits. There is no minimum amount of service credit required for eligibility. The Plan 2 allowance amount is 2 percent of the FAS for each
year of service. Benefits are actuarially reduced for each year that the member’s age is less than 53, unless the disability is duty-related, and to reflect the choice of a survivor
option. If the member has at least 20 years of service and is age 50, the reduction is 3 percent for each year prior to age 53. A catastrophic disability benefit equal to 70 percent
of their FAS, subject to offsets for workers’ compensation and Social Security disability benefits received, is also available to those LEOFF 85
CITY OF AUBURN: 2010 CAFR NOTES TO THE FINANCIAL STATEMENTS Plan 2 members who are severely disabled in the line of duty and incapable of future substantial gainful employment in any
capacity. Effective June 2010, benefits to LEOFF Plan 2 members who are catastrophically disabled include payment of eligible health care insurance premiums. Members of LEOFF Plan 2
who leave service because of a line of duty disability are allowed to withdraw 150 percent of accumulated member contributions. This withdrawal benefit is not subject to federal income
tax. Alternatively, members of LEOFF Plan 2 who leave service because of a line of duty disability may be eligible to receive a retirement allowance of at least 10 percent of FAS and
2 percent per year of service beyond five years. The first 10 percent of the FAS is not subject to federal income tax. LEOFF Plan 2 retirees may return to work in an eligible position
covered by another retirement system, choose membership in that system and suspend their pension benefits, or not choose membership and continue receiving pension benefits without interruption.
LEOFF Plan 2 members who apply for retirement may purchase up to five years of additional service credit. The cost of this credit is the actuarial equivalent of the resulting increase
in the member’s benefit. LEOFF Plan 2 members can purchase service credit for military service that interrupts employment. Additionally, LEOFF Plan 2 members who become totally incapacitated
for continued employment while servicing in the uniformed services may apply for interruptive military service credit. Should any such member die during this active duty, the member’s
surviving spouse or eligible child(ren) may purchase service credit on behalf of the deceased member. LEOFF Plan 2 members may also purchase up to 24 consecutive months of service credit
for each period of temporary duty disability. Beneficiaries of a LEOFF Plan 2 member who is killed in the course of employment receive retirement benefits without actuarial reduction,
if found eligible by the Director of the Department of Labor and Industries. Benefits to eligible surviving spouses and dependent children of LEOFF Plan 2 members killed in the course
of employment include the payment of on-going health care insurance premiums paid to the Washington state Health Care Authority. A one-time duty-related death benefit is provided to
the estate (or duly designated nominee) of a LEOFF Plan 2 member who dies as a result of injuries or illness sustained in the course of employment, if found eligible by the Department
of Labor and Industries. There are 372 participating employers in LEOFF. Membership in LEOFF consisted of the following as of the latest actuarial valuation date for the plans of June
30, 2009: Retirees and Beneficiaries Receiving Benefits 9,454 Terminated Plan Members Entitled to but not yet Receiving Benefits 674 Active Plan Members Vested 13,363 Active Plan Members
Non-vested 3,944 Total 27,435 86
CITY OF AUBURN: 2010 CAFR NOTES TO THE FINANCIAL STATEMENTS Funding Policy Starting on July 1, 2000, LEOFF Plan 1 employers and employees contribute zero percent as long as the plan
remains fully funded. Employer and employee contribution rates are developed by the Office of the State Actuary to fully fund the plan. LEOFF Plan 2 employers and employees are required
to pay at the level adopted by the LEOFF Plan 2 Retirement Board. All employers are required to contribute at the level required by state law. The Legislature, by means of a special
funding arrangement, appropriated money from the state General Fund to supplement the current service liability and fund the prior service costs of LEOFF Plan 2 in accordance with the
requirements of the Pension Funding Council and the LEOFF Plan 2 Retirement Board. However, this special funding situation is not mandated by the state constitution and this funding
requirement could be returned to the employers by a change of statute. The required contribution rates expressed as a percentage of current-year covered payroll, as of December 31, 2010,
were as follows: LEOFF Plan 1 LEOFF Plan 2 Employer* 0.16% 5.24%** Employee 0.00% 8.46% * The employer rates include the employer administrative expense fee currently set at 0.16%. **
The employer rate for ports and universities is 8.62%. Both the City of Auburn and the employees made the required contributions. The City’s required contributions for the years ended
December 31 were: LEOFF Plan 1 LEOFF Plan 2 2010 $190 $469,715 2009 $189 $470,102 2008 $221 $459,489 Public Safety Employees’ Retirement System (PSERS) Plan 2 Plan Description PSERS
is a cost-sharing multiple-employer retirement system comprised of a single defined benefit plan, PSERS Plan 2. PSERS was created by the 2004 Legislature and became effective July 1,
2006. PSERS Plan 2 membership includes full-time employees of a covered employer on or before July 1, 2006, who met at least one of the PSERS eligibility criteria, and elected membership
during the election period of July 1, 2006 to September 30, 2006; and those full-time employees, hired on or after July 1, 2006 by a covered employer, that meet at least one of the PSERS
eligibility criteria. A covered employer is one that participates in PSERS. Covered employers include the following: State of Washington agencies: Department of Corrections, Department
of Natural Resources, Parks and Recreation Commission, Gambling Commission, Washington State Patrol, and Liquor Control Board; Washington state counties; and Washington state cities
except for Seattle, Tacoma and Spokane. 87
CITY OF AUBURN: 2010 CAFR NOTES TO THE FINANCIAL STATEMENTS To be eligible for PSERS, an employee must work on a full-time basis and have one of the following: • Completed a certified
criminal justice training course with authority to arrest, conduct criminal investigations, enforce the criminal laws of Washington, and carry a firearm as part of the job. • Primary
responsibility to ensure the custody and security of incarcerated or probationary individuals. • Limited authority to function as a Washington peace officer, as defined in RCW 10.93.020.
• Primary responsibility to supervise eligible members who meet the above criteria. PSERS defined benefit retirement benefits are financed from a combination of investment earnings and
employer and employee contributions. PSERS retirement benefit provisions are established in Chapter 41.37 RCW and may be amended only by the State Legislature. PERS Plan 2 members are
vested after the completion of five years of eligible service. PSERS Plan 2 members may retire at the age of 65 with five years of service, or at the age of 60 with at least 10 years
of PSERS service credit, with an allowance of two percent of the average final compensation (AFC) per year of service. The AFC is the monthly average of the member’s 60 consecutive highest-paid
service credit months, excluding any severance pay such as lump-sum payments for deferred sick leave, vacation or annual leave. Plan 2 members who retire prior to the age of 60 receive
reduced benefits. If retirement is at age 53 or older with at least 20 years of service, a three percent per year reduction for each year between the age at retirement and age 60 applies.
There is no cap on years of service credit; and a cost-of-living allowance is granted (based on the Consumer Price Index), capped at three percent annually. PSERS Plan 2 provides disability
benefits. There is no minimum amount of service credit required for eligibility. Eligibility is based on the member being totally incapacitated for continued employment with a PSERS
employer and leaving that employment as a result of the disability. The disability allowance is 2 percent of the average final compensation (AFC) for each year of service. AFC is based
on the member’s 60 consecutive highest creditable months of service. Service credit is the total years and months of service credit at the time the member separates from employment.
Benefits are actuarially reduced for each year that the member’s age is less than 60 (with ten or more service credit years in PSERS), or less than 65 (with fewer than ten service credit
years). PSERS Plan 2 members can purchase service credit for military service that interrupts employment. Additionally, PSERS members who become totally incapacitated for continued employment
while serving in the uniformed services, may apply for interruptive military service credit. Should any such member die during this active duty, the member’s surviving spouse or eligible
child(ren) may purchase service credit on behalf of the deceased member. PSERS members may may also purchase up to 24 consecutive months of service credit for each period of temporary
duty disability. Beneficiaries of a PSERS Plan 2 member with ten years of service who is killed in the course of employment receive retirement benefits without actuarial reduction, if
the member was not at normal retirement age at death. This provision applies to any member killed in the course of employment, if found eligible by the Director of the Department of
Labor and Industries. 88
CITY OF AUBURN: 2010 CAFR NOTES TO THE FINANCIAL STATEMENTS A one-time duty-related death benefit is provided to the estate (or duly designated nominee) of a PSERS member who dies as
a result of injuries or illness sustained in the course of employment, if found eligible by the Department of Labor and Industries. There are 73 participating employers in PSERS. Membership
in PSERS consisted of the following as of the latest actuarial valuation date for the plan of June 30, 2009: Retirees and Beneficiaries Receiving Benefits 2 Terminated Plan Members Entitled
to but not yet Receiving Benefits -Active Plan Members Vested -Active Plan Members Non-vested 4,340 Total 4,342 Funding Policy Each biennium, the state Pension Funding Council adopts
PSERS Plan 2 employer and employee contribution rates. The employer and employee contribution rates for Plan 2 are developed by the Office of the State Actuary to fully fund Plan 2.
All employers are required to contribute at the level established by the Legislature. The methods used to determine the contribution requirements are established under state statute
in accordance with Chapters 41.37 and 41.45 RCW. The required contribution rates expressed as a percentage of current-year covered payroll, as of December 31, 2010, were as follows:
PSERS Plan 2 Employer* 7.85% Employee 6.55% *The employer rate includes and employer administrative expense fee of 0.16%. Both the City of Auburn and the employees made the required
contributions. The City’s required contributions for the years ended December 31 were as follows: PSERS Plan 2 2010 $ 5 5,262 2009 $ 5 8,643 2008 $ 5 7,147 City of Auburn Fire Relief
and Pension Plan The City is the administrator of the Firemen’s Pension Plan (Plan), which is a closed, singleemployer defined benefit pension plan that was established in conformance
with RCW Chapters 41.16 and 41.18. This plan provided retirement and disability benefits, annual cost-of-living adjustments, and death benefits to plan members and beneficiaries. Membership
is limited to firefighters employed prior to March 1, 1970 when the LEOFF retirement system was established. The City’s obligation under the Firemen’s Pension Plan consists of paying
all benefits, including payments to beneficiaries and healthcare, for firefighters who retired prior to March 1, 1970, and 89
CITY OF AUBURN: 2010 CAFR NOTES TO THE FINANCIAL STATEMENTS excess pension and healthcare benefits of LEOFF for covered firefighters who retired after March 1, 1970. Benefits and refunds
of the defined benefit pension plan are recognized when due and payable in accordance with the Plan. The Plan does not issue a separate financial report. Under state law, the Firemen’s
Pension Plan is provided an allocation of 25% of all monies received by the state from taxes on fire insurance premiums, interest earnings, member contributions made prior to the inception
of LEOFF, and City contributions required to meet projected future pension obligations. The actuary determined as of January 1, 2011 that no future City contributions would be required
beyond future revenues from state fire insurance taxes and interest earnings. In 2010 $63,545 was received from the state from taxes on fire insurance premiums. On-behalf payments of
fringe benefits and salaries for the City’s employees were recognized as revenues and expenditures/expenses during the period. Administrative costs, such as City staff time and actuarial
valuation costs are funded from interest earnings or City contributions. Membership of the Firemen’s Pension Plan consisted of 14 eligible, of which 12 are receiving benefits. Unfunded
Actuarial Actuarial UAAL as a Actuarial Accrued Accrued Percentage Actuarial Value Liabilities -Liabilities Funded Covered of Covered Valuation Date of Assets Entry Age (UAAL) Ratio
Payroll Payroll January 1, 1999 $ 2 ,096 $ 2,157 $ 60 97.17% $ 119 51% January 1, 2001 3 ,632 2,332 (1,300) 155.75% 58 (2241%) January 1, 2003 3,514 2,428 (1,086) 144.73% 61 (1780%)
January 1, 2005 3,160 2,172 (988) 145.00% 64 (1544%) January 1, 2007 2,868 2,802 (66) 102.00% -N/A January 1, 2009 2,941 1,878 (1,063) 157.00% -N/A January 1, 2011 2,780 3,052 272 91.00%
-N/A This plan primarily covers inactive participants. There are no current member contributions. GASB STATEMENTS No. 25 and No. 27 SCHEDULE OF FUNDING PROGRESS (rounded to thousands)
THREE YEAR TREND INFORMATION Fiscal Actual Annual Required Percentage Annual Percentage Net Year Employer Contribution of ARC Pension Cost of APC Pension Ending Contributions (ARC) Contributed
(APC) Contributed Obligation December 31, 1999 $ 5 2,738 $ 5,381 980% December 31, 2000 3 1,721 5,381 590% $ 5,520 574.66% $ ( 48,808) December 31, 2001 3 7,281 -N/A 3 41 10932.84% (
85,748) December 31, 2002 4 0,869 -N/A 6 84 5975.00% ( 125,933) December 31, 2003 4 5,664 -N/A 1,137 4016.18% ( 170,460) December 31, 2004 (137,783) (91,881) N/A ( 90,143) N/A ( 122,820)
December 31, 2005 (144,746) (78,690) N/A ( 76,827) N/A ( 54,901) December 31, 2006 (149,327) (78,690) N/A ( 77,774) N/A 16,652 December 31, 2007 1 7,920 (5,048) N/A ( 5,420) N/A ( 48,953)
December 31, 2008 1 2,167 (5,048) N/A ( 4,885) N/A ( 23,740) December 31, 2009 3 7,232 (78,233) N/A ( 77,503) N/A ( 138,475) December 31, 2010 4 9,049 (78,233) N/A ( 73,634) N/A ( 261,158)
GASB STATEMENT No. 25 GASB STATEMENT No. 27 SCHEDULE OF EMPLOYER CONTRIBUTIONS 90
CITY OF AUBURN: 2010 CAFR NOTES TO THE FINANCIAL STATEMENTS Fiscal ARC at Amort. Annual Total Year End of Interest on ARC Factor Pension Cost Employer Change in NPO Ending Year (1) NPO
(2) Adjustment * (APC) Contributions NPO Balance (3) 12/31/1999 $ 5 ,381 $ 1 ,742 $ 1 ,874 13.28% $ 5 ,249 $ 5 2,738 $ (47,489) $ ( 22,667) 12/31/2000 5 ,381 (1,582) (1,721) 13.14% 5
,520 3 1,721 (26,201) ( 48,808) 12/31/2001 -(3,417) (3,758) 12.99% 3 41 3 7,281 (36,940) ( 85,748) 12/31/2002 -(6,002) (6,686) 12.83% 6 84 4 0,869 (40,185) ( 125,933) 12/31/2003 -(8,815)
(9,952) 12.65% 1 ,137 4 5,664 (44,527) ( 170,460) 12/31/2004 ( 91,881) (11,932) (13,670) 12.47% (90,143) ( 137,783) 47,640 ( 122,820) 12/31/2005 ( 78,690) (7,369) (9,232) 13.30% (76,827)
( 144,746) 67,919 ( 54,901) 12/31/2006 ( 78,690) (3,294) (4,210) 13.04% (77,774) ( 149,327) 71,553 1 6,652 12/31/2007 (5,048) 833 1,205 13.82% (5,420) 1 7,920 (23,340) ( 6,688) 12/31/2008
(5,048) (334) (497) 13.46% (4,885) 1 2,167 (17,052) ( 23,740) 12/31/2009 ( 78,233) (950) (1,680) 14.13% (77,503) 3 7,232 (114,735) ( 138,475) 12/31/2010 ( 78,233) (5,539) (10,138) 13.66%
(73,634) 4 9,049 (122,683) ( 261,158) (1) A change in consulting actuaries resulted in a recommended change in the actuarial methods and assumptions. (2) 8% interest rate was used for
years prior to January 1, 1999; 7% 2000 -2004; 6% 2005-2006; 5% 2007-2008; 4% thereafter. Statement of Net Assets, prior to 2010. * Based on 30-year level-dollar closed amortization
as of January 1, 1999. (3) The Net Pension Obligation (NPO) balance is reflected as part of Deferred Charges on the Government-wide GASB STATEMENT No. 27 Annual Development of Pension
Cost The information presented in the preceding required schedules was determined as part of the actuarial valuations at the date indicated. Valuation date Actuarial cost method Amortization
method Remaining amortization period Asset valuation method Fair market value January 1, 2011 Entry age normal 30-year, closed as of January 1, 1999 18 years Actuarial Assumptions Investment
rate of return 4.0% Projected salary increases 3.75% Cost-of living adjustments 2.75% NOTE 11 – OTHER POST EMPLOYMENT BENEFITS In 2008, the city implemented GASB Statement 45, Accounting
and Financial Reporting by Employers for Post Employment Benefits Other Than Pensions. Plan Description The city is the administrator of the LEOFF 1 employees plan covering lifetime
medical care. This plan is a defined benefit healthcare plan, other post employment benefit plan (OPEB). The city is required to pay post employment benefits in accordance with Revised
Code of Washington (RCW) Chapter 41.16, all medical and long term care as long as a disability exists 91
CITY OF AUBURN: 2010 CAFR NOTES TO THE FINANCIAL STATEMENTS are covered for any active firefighter hired prior to March 1, 1970. For any retired firefighter hired prior to March 1, 1970,
medical and long term care are covered at the discretion of the Retirement Board. Members retired prior to 1961 for reasons other than duty disability are not eligible for medical benefits
during retirement. In 1970, LEOFF was established by the Legislature under RCW Chapter 41.26. LEOFF members who joined the system by September 30, 1977 are Plan 1 members. For Plan 1
members, the city is required to pay all healthcare expenses incurred by LEOFF 1 retirees. The City’s cost is reduced by any amounts retirees receive from Medicare or other health plans.
Funding Policy The funding policy is based upon the pay-as-you-go financing requirements. Annual OPEB Cost and Net OPEB Obligation The City’s annual other post employment benefit (OPEB)
cost is calculated based upon the annual required contribution (ARC), an amount actuarially determined in accordance with the parameters of GASB Statement 45. The ARC represents a level
of funding that, if paid on an ongoing basis, is projected to cover the normal cost each year and amortize any unfunded actuarial liabilities over a period of 21 years as of January
1, 2008. The table below shows the components of the City’s annual OPEB cost for the year, the amount actually contributed to the plan and changes in the City’s net OPEB for LEOFF. Fiscal
Year Ending 12/31/2010 Annual required contribution (ARC) 1. Annual Normal Costs at beginning of year $ 90,257 2. Amortization of UAAL at beginning of year 1,540,432 3. Interest to end
of year 81,534 4. ARC at end of year $ 1,712,223 5. Interest on Net OPEB Obligation 72,339 6. Adjustment to ARC 114,014 7. Annual OPEB Cost $ 1,670,548 8. Employer Contributions 1,048,494
9. Change in Net OPEB Obligation 622,054 10. Net OPEB Obligation at beginning of year 1,446,786 11. Net OPEB Obligation at end of year $ 2,068,840 The net OPEB obligation of $2,068,840
2,068,840 is included as a non-current liability on the Statement of Fund Net Assets. The City’s annual OPEB cost, the percentage of OPEB costs contributed to the plan, and the net OPEB
obligation for 2010 were as follows: 92
CITY OF AUBURN: 2010 CAFR NOTES TO THE FINANCIAL STATEMENTS Contributions as a Annual Percentage of Net OPEB Fiscal Year Ending OPEB Cost Annual OPEB Cost Obligation December 31, 2010
$ 1,670,548 63% $ 2,068,840 Funded Status and Funding Progress As of January 1, 2011, the most recent actuarial valuation date, the plan was 0% funded. The accrued liability for benefits
was $26.4 million, and the actuarial value of assets was $0, resulting in a UAAL of $26.4 million. Actuarial valuations involve estimates of the value of reported amounts and assumptions
about the probability of occurrence of events far into the future. Examples include assumptions about future employment, mortality, and the healthcare cost trend. Amounts determined
regarding the funded status of the plan and the annual required contributions of the employer are subject to continual revision as actual results are compared with past expectations
and new estimates are made about the future. Actuarial Methods and Assumptions Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as
understood by the employer and the plan members) and include the types of benefits provided at the time of each valuation. The actuarial methods and assumptions used include techniques
that are designed to reduce the effects of short-term volatility in actuarial accrued liabilities, consistent with the long-term perspective of the calculations. In the January 1, 2011
actuarial valuation, the entry age normal actuarial cost method was used. The actuarial assumptions used included a 4.0% discount rate, which is based upon the longterm investment yield
on the investments that are expected to be used to finance the payment of benefits. Other significant assumptions are a medical inflation rate of 7.8%, dental inflation rate of 5.0%
and long term care of 4.75%. The UAAL is being amortized on a closed basis at the assumed discount rate using the level dollar amortization method. The remaining amortization period
at January 1, 2011 was 18 years. NOTE 12 – ASSOCIATION OF WASHINGTON CITIES EMPLOYEE BENEFIT TRUST (“Trust”) Trust Description The City is a Participating Employer in the Association
of Washington Cities Employee Benefit Trust (“Trust”), a cost-sharing multiple-employer welfare benefit plan administered by the Association of Washington Cities. The Trust provides
medical benefits to certain eligible retired employees of Participating Employers and their eligible family members. Under Article VII of the Trust document, the Trustees have the authority
and power to amend the amount and the nature of the medical and other benefits provided by the Trust. The Trust issues a publicly available financial report that includes financial statements
and requires supplementary information for Trust. That report, along with a copy of the Trust document, may be obtained by writing to Trust at 1076 Franklin Street SE, Olympia, WA 98501-1346
or by calling 1-800-562-8981. Funding Policy The Trust provides that contribution requirements of Participating Employers and of participating employees, retirees and other beneficiaries,
if any, are established and may be amended by the 93
CITY OF AUBURN: 2010 CAFR NOTES TO THE FINANCIAL STATEMENTS Board of Trustees of the Trust. Retirees of the City receiving medical benefits from the Trust contribute up to $668.43 per
month for non-Medicare enrolled retiree-only coverage, $1,339.17 for non-Medicare enrolled retiree and spouse coverage, $1,035.56 for Medicare enrolled retiree and non-Medicare enrolled
spouse (or non-Medicare enrolled retiree and Medicare-enrolled spouse) and $731.95 for Medicare-enrolled retiree and spouse coverage. Participating Employers are not contractually required
to contribute an assessed rate each year by the Trust for non-LEOFF 1 retirees. The retire pays for 100% of the premium. NOTE 13 – CONSTRUCTION COMMITMENTS At December 31, 2010 the City
had the following contractual obligations on construction projects: Amount Outstanding Traffic projects $ 1 13,913 Street projects 4 35,248 Utilities projects 6 ,509,666 Other projects
2 ,958,135 Total commitments $ 10,016,962 SCHEDULE OF OUTSTANDING CONSTRUCTION OBLIGATIONS AS OF DECEMBER 31, 2010 NOTE 14 – CEMETERY ENDOWED CARE FUND The City maintains one permanent
fund known as the cemetery endowed care fund. Paid into this fund are 15% of all proceeds received from the sale of each grave, niche or crypt. This fund is irreducible in principal
and no part of the income of this fund shall ever be used for purposes other than those specified upon the creation of the fund. RCW 68.44.020 restricts the use of endowment net appreciation
to endowment care “stipulated in the instrument by which the fund was established”. For the City, the instrument that established the fund is Auburn City Code section 3.04.080, and section
3.040.120 governs the use of the fund. ACC 3.04.120 restricts net interest or income from investments to the care of the lots and in the improvement or embellishment of the cemetery
or the erection or preservation of any buildings or structures, fences or walks, or for the repair, preservation, erection or renewal of any tomb, monument, grave, stone, fence, railing
or other erection in or around the cemetery. The funds may also be used for planting and cultivating trees, shrubs, flowers or plants in or around the cemetery. All expenditures of income
from the fund must first be authorized by the City Council. For 2010, of the $4,194 net appreciation on investments, all was available for expenditures. Amounts that are available for
expenditure are reflected as unrestricted net assets. 94
CITY OF AUBURN: 2010 CAFR NOTES TO THE FINANCIAL STATEMENTS NOTE 15 – JOINT VENTURES /RELATED PARTY Valley Communications Center The “Valley Communications Center” was established August
20, 1976, when an Interlocal Agreement was entered into by four participating municipal corporations: Renton, Kent, Auburn and Tukwila. The provisions and terms of the “Interlocal Cooperation
Act”, pursuant to RCW 39.34, sanction the agreement. The initial duration of the agreement was five years and thereafter is automatically extended for consecutive two-year periods, unless
terminated by one or more of the participating cities. Any such termination must be in writing and served upon the other cities on or before July 1 in any one year and such termination
shall then become effective on the last day of such year. On August 4, 1999 the Administration Board of Valley Communications Center voted to include the City of Federal Way as a full
participating member city as of January 1, 2000. The five participating municipal corporations that include the cities of Renton, Kent, Auburn, Tukwila, and Federal Way on April 17,
2000 entered into a new Interlocal Agreement, pursuant to RCW 39.34, et seq. This agreement reaffirmed Valley Communications Center as a governmental administration agency pursuant to
RCW 39.34.030 (3) (b). The purpose of the joint operation, hereafter referred to as Valley Com, is to provide improved consolidated emergency communications (dispatch) services for police,
fire and medical aid to the five participating cities and to the several subscribing agencies, which include King County Fire Districts #2, #20, #40, #43, #44, #47, Black Diamond Fire
Department, Vashon Island
Fire Department, City of Pacific Police and Fire Departments, City of Algona Police Department, City of Black Diamond Police Department, City of Des Moines Police Department, SeaTac
Fire Department, North Highline Fire Department, and King County EMS Units. In 1988, King County Fire District #1 was annexed to the City of Tukwila. A separate agreement between Valley
Com and the subscribing agencies has been executed, which set forth condition of services and rates charged. The participating cities provide the majority of revenues to Valley Com.
The method of allocating revenue source was changed in 1990 to a basis of prior year’s calls with actual first and second quarter and estimated third and fourth quarter calls. The allocation
of prorated financial participation among the five participating cities is the percentage of estimated dispatched calls attributed to each jurisdiction compared to the total actual and
estimated dispatched calls, for the period for January 1, through December 31. The percentages are applied to the current approved budget, less revenue from subscribing agencies and
all other sources. The 2010 cost distribution for the five participating cities is as follows: Dispatchable Percent of Calls Total * Renton 79,729 21.77% Kent 94,799 25.89% Auburn 73,969
20.20% Tukwila 34,691 9.47% Federal Way 83,022 22.67% Total 366,210 100.00% * Distribution of current year net income is based on these budgeted percentages. 95
CITY OF AUBURN: 2010 CAFR NOTES TO THE FINANCIAL STATEMENTS Valley Com is served by an Administration Board composed of the Mayors or designated representatives from the five participating
cities of Renton, Kent, Auburn, Tukwila and Federal Way. The Administration Board is responsible for the following functions: 1) Budget review and recommendation to the legislative bodies
of the participating cities, and budget adoption after each legislative body has approved the required financial participation for the ensuing year; 2) Approval of appointment and/or
discharge of the Director; 3) Approval of personnel policy and final decisions on all major policy changes; 4) Review and approval of all contracts. In addition, an Operations Board
provides direction and consists of two members of each participating City’s public safety departments, including the heads of such departments or their designees. The Operations Board
performs the following functions: 1) Oversees the operation of Valley Com, advises and makes recommendations to the Administration Board; 2) Makes recommendations on Director selection;
3) Presents proposed policies and budget to the Administration Board; 4) Approves disbursement of funds by the Director. The Director presents a proposed budget to the Operations Board
on or before August 15 of each year. Said budget is then presented to the Administration Board by September 1 of each year. The Administration Board can make changes to the proposed
Valley Com budget as it finds necessary, but final approval falls to the legislative body of each participating city in accordance with the provisions of the Interlocal Agreement. In
August 1993, Valley Com entered into an Interlocal Cooperation Agreement, pursuant to Chapter 39.34 RCW, with the sub-regions of King County, Seattle and Eastside Public Safety Communications
Agency (EPSCA). This agreement governs the development, acquisition and installation of the 800 MHz emergency radio communications system (system) funded by the $57 million King County
levy. This agreement provides that upon voluntary termination of any sub-region participation in the system, it surrenders its radio frequencies, relinquishes its equipment and transfers
any unexpended levy proceeds and association equipment replacement reserves to another subregion or consortium of sub-regions. The share of equity belonging to the five participating
cities is as follows: Item Renton Kent Auburn Tukwila Federal Way Total Equity Dec. 31, 2009 $ 4 ,653,923 $ 6,628,171 $ 4 ,408,776 $2,661,250 $ 2,903,476 $ 2 1,255,596 Current year change
179,748 213,723 166,762 78,210 187,172 825,615 Equity Dec 31, 2010 $ 4 ,833,671 $ 6,841,894 $ 4,575,538 $ 2,739,460 $ 3,090,648 $ 2 2,081,211 % of equity 21.89% 30.99% 20.72% 12.41%
14.00% % of 2010 distribution 21.77% 25.89% 20.20% 9.47% 22.67% Liabilities are the responsibility of the five participating cities in direct proportion to their equity osition. Communications
Center, 27519 108th Ave SE, Kent, WA 98030, or telephone 253-372-300. p Complete audited financial statements for Valley Communications Center can be obtained from Valley 1 South Correctional
Entity (SCORE) The South Correctional Entity (SCORE) consolidated correctional facility was established February 25, 2009, when an Interlocal Agreement (the “Original Interlocal Agreement”)
was 96
CITY OF AUBURN: 2010 CAFR NOTES TO THE FINANCIAL STATEMENTS entered into by seven participating municipal governments, the “Member Cities” of Auburn, Burien, Des Moines, Federal Way,
Renton, SeaTac and Tukwila, under the authority of the “Interlocal Cooperation Act” (RCW 39.34). This “Original Interlocal Agreement” was amended and restated October 1, 2009 and named
the City of Des Moines as the “Host City” and the remaining Member Cities as “Owner Cities”. This Interlocal agreement is known as the “Formation Interlocal Agreement”. Pursuant to a
separate “Host City Agreement” dated October 1, 2009, the Host City will not enjoy the same equity position as the Owner Cities until all debts issued are paid and the Host City fulfills
all of its obligations as outlined in the Agreement. SCORE, a governmental administrative agency pursuant to RCW 39.34.030 (3), has the power to acquire, construct, own, operate, maintain,
equip, and improve a correctional facility known as the “SCORE Facility” and to provide correctional services and functions incidental thereto, for the purpose of detaining arrestees
and sentenced offenders in the furtherance of public safety and emergencies within the jurisdiction of the Member Cities. The SCORE Facility may serve the Member Cities and Subscribing
Agencies which are in need of correctional facilities. Any agreement with a Subscribing Agency shall be in writing and approved by SCORE as provided within the SCORE Formation Interlocal
Agreement. Financing for the acquisition, construction, equipping, and improvement of the SCORE Facility will be provided by bonds issued by the South Correctional Entity Facility Public
Development Authority (the “SCORE PDA”), a public development authority chartered by the City of Renton pursuant to RCW 35.21.730 through 35.21.755 and secured by the full faith and
credit of the Cities of Auburn, Burien Federal Way, Renton, SeaTac, and Tukwila (the “Owner Cities”). The SCORE PDA issued $86 million in special obligation bonds in 2009 to carry out
the facility development project. The following is a summary of the debt service requirements for the bond issue: 35% B AB s A ubu rn B urie n Fe deral Wa y Rent on S eaTac Tu kwila
Yea r Prin cipal Int erest Su bsidy Tot al 31% 4% 18% 36% 3% 8% 2011 $ -$ 5, 155 ,73 2 $ (1, 675,089 ) $ 3,4 80, 643 $ 1 ,07 8,9 99 $ 13 9,2 26 $ 62 6,5 16 $ 1, 253 ,03 1 $ 104 ,419
$ 2 78, 451 2012 -5, 155 ,73 2 (1, 675,089 ) 3,4 80, 643 1 ,078,999 13 9,2 26 62 6,5 16 1,253,031 104,419 2 78, 451 2013 1,91 5,0 00 5,126 ,99 8 (1, 675,089 ) 5,3 66, 909 1 ,663,742
21 4,6 76 96 6,0 44 1,932,087 161,007 4 29, 353 2014 1,95 0,0 00 5,066 ,56 6 (1, 654,975 ) 5,3 61, 591 1 ,662,093 21 4,4 64 96 5,0 86 1,930,173 160,848 4 28, 927 2015 1,99 0,0 00 4,995
,06 9 (1, 632,787 ) 5,3 52, 282 1 ,659,207 21 4,0 91 96 3,4 11 1,926,822 160,568 4 28, 183 201 6-2 020 11,14 5,0 00 23,535 ,18 9 (8, 001,883 ) 2 6,6 78, 306 8 ,270,275 1 ,06 7,1 32 4
,80 2,0 95 9,604,190 800,349 2,1 34, 264 202 1-2 025 13,40 5,0 00 20,377 ,99 8 (7, 211,504 ) 2 6,5 71, 494 8 ,237,163 1 1 ,06 2,8 60 4 ,78 2,8 69 9,565,738 797,145 2,1 25, 720 202 6-2
030 16,32 5,0 00 15,803 ,61 1 (5, 715,798 ) 2 6,4 12, 813 8 ,187,972 1 ,05 6,5 13 4 ,75 4,3 06 9,508,613 792,384 2,1 13, 025 203 1-2 035 20,09 5,0 00 9,856 ,35 1 (3, 682,383 ) 2 6,2
68, 968 8 ,143,380 1 ,05 0,7 59 4 ,72 8,4 14 9,456,828 788,069 2,1 01, 517 203 6-2 039 19,41 0,0 00 2,636 ,14 5 (1, 147,380 ) 2 0,8 98, 765 6 ,478,617 83 5,9 51 3 ,76 1,7 78 7,523,555
626,963 1,6 71, 901 To tals $ 8 6,23 5,0 00 $ 97,709 ,39 1 $ (34, 071,977 ) $ 14 9,8 72, 414 $ 4 6 ,46 0,4 47 $ 5 ,994,898 $ 26 ,97 7,0 35 $ 53, 954 ,06 8 $ 4,496 ,171 $ 1 1,9 89, 792
Note : Inte res t is t o b e p aid from b ond proce eds during th e c onst ru ction p eriod (2010 -20 11) Sum mary of Debt Service Requirements Debt S ervice Schedule Debt S ervice Allocation
to Owner Ci ties The City of Auburn reports its share of equity interest in the Governmental Activities column within the Government-wide financial statements under non-current assets.
The following is condensed (unaudited) financial information as of December 31, 2010 related to SCORE: Member City Percent of Equity 2009 Equity Balance 2010 Dist ribution 2010 Equity
Balance Auburn 31.00% $ 1,692,471 $ ( 90,883) $ 1,601,588 Burien 4.00% 2 18,383 (11,727) 206,656 Federal W ay 18.00% 9 82,725 (52,771) 929,954 Renton 36.00% 1,965,450 (105,540) 1,859,910
SeaTac 3.00% 1 63,787 (8,795) 154,992 Tukwila 8.00% 4 36,767 (23,454) 413,313 Grand Totals 100.00% $ 5,459,583 $ (293,170) $ 5,166,413 South Correctional Entity (SCORE) 2010 Owner Ci
ties Equity Al location 97
CITY OF AUBURN: 2010 CAFR NOTES TO THE FINANCIAL STATEMENTS Completed financial statements for SCORE and SCORE PDA can be obtained from the SCORE office, City of Renton, 1055 South Grady
Way, Renton, WA 98057. NOTE 16 – JOINTLY GOVERNED ORGANIZATION /RELATED PARTY Residents of the cities of Auburn, Algona and Pacific approved in the November 7, 2006 general election
the creation of a regional fire authority pursuant to RCW 52.26. The new regional fire protection service authority, called the Valley Regional Fire Authority (VRFA), provides first
responder fire and emergency medical services to residents of Auburn, Algona and Pacific. The VRFA is a new municipal corporation, with its own Governing Board, and is legally separate
from the three cities it serves. The Governing Board of the VRFA consists of the Mayors of the three cities within the VRFA service area, as well as two Councilmembers from each city.
Membership on the Governing Board is made by appointment from the city council of the respective member cities. Effective January 1, 2007, all personnel, assets, equipment and contractual
obligations of the former Auburn Fire Department were transferred to the VRFA. Similar transfers were made by the cities of Algona and Pacific. In accordance with the interlocal agreement
at time of formation, each member city retained its obligation for LEOFF 1 firefighter and Fire Relief and Pension Plan obligations. During 2010 Auburn paid $33,404 for the employer’s
share of active LEOFF 1 firefighter medical premiums and benefit payments. Premium and benefit payments for retired LEOFF 1 firefighters for 2010 were $188,288. Medical premiums and
benefit payments made under the Fire Relief and Pension Plan for 2010 were $135,430. NOTE 17 – CONTINGENCIES AND LITIGATION As of December 31, 2010, a number of claims were pending against
the City for damages and legal actions. While the outcome of these actions is uncertain, no losses are clearly anticipated at this time due to these pending claims. In the event of a
liability finding against the City, it is anticipated that any potential adverse judgment against the City also would be subject to coverage under the City’s comprehensive liability
insurance, including public officials’ errors and omission insurance and general liability insurance. NOTE 18 – RISK MANAGEMENT & INSURANCE Risk Management The City is exposed to various
risks of loss such as: theft and damage and destruction of assets, errors and omissions, injuries or property damage to others, employees’ health, and natural disasters. All risk financing
activities are accounted for in the Insurance internal service fund. To insure against risks of loss the City of Auburn is a member of the Washington Cities Insurance Authority (WCIA).
Utilizing Chapter 48.62 RCW (self-insurance regulation) and Chapter 39.34 RCW (Interlocal Cooperation Act), nine cities originally formed WCIA on January 1, 1981. WCIA was created for
the purpose of providing a pooling mechanism for jointly purchasing insurance, jointly selfinsuring, and /or jointly contracting for risk management services. WCIA has a total of 145
Members. New members initially contract for a three-year term, and thereafter automatically renew on an annual basis. A one-year withdrawal notice is required before membership can be
terminated. 98
CITY OF AUBURN: 2010 CAFR NOTES TO THE FINANCIAL STATEMENTS Termination does not relieve a former member from its unresolved loss history incurred during membership. Liability coverage
is written on an occurrence basis, without deductibles. Coverage includes general, automobile, police, public officials’ errors or omissions, stop gap, and employee benefits liability.
Limits are $4 million per occurrence self insured layer, and $16 million per occurrence in the re-insured excess layer. The excess layer is insured by the purchase of reinsurance and
insurance and is subject to aggregate limits. Total limits are $20 million per occurrence subject to aggregate sublimits in the excess layers. The Board of Directors determines the limits
and terms of coverage annually. Insurance coverage for property, automobile physical damage, fidelity, inland marine, and boiler and machinery are purchased on a group basis. Various
deductibles apply by type of coverage. Property insurance and auto physical damage are self-funded funded from the members’ deductible to $500,000, for all perils other than flood and
earthquake, and insured above that amount by the purchase of insurance. In-house services include risk management consultation, loss control field services, claims and litigation administration,
and loss analyses. WCIA contracts for the claims investigation consultants for personnel issues and land use problems, insurance brokerage, and lobbyist services. WCIA is fully funded
by its members, who make annual assessments on a prospectively rated basis, as determined by an outside, independent actuary. The assessment covers loss, loss adjustment, and administrative
expenses. As outlined in the interlocal, WCIA retains the right to additionally assess the membership for any funding shortfall. An investment committee, using investment brokers, produces
additional revenue by investment of WCIA's assets in financial instruments which comply with all State guidelines. These revenues directly offset portions of the membership's annual
assessment. A Board of Directors governs WCIA, which is comprised of one designated representative from each member. The Board elects an Executive Committee and appoints a Treasurer
to provide general policy direction for the organization. The WCIA Executive Director reports to the Executive Committee and is responsible for conducting the day to day operations of
WCIA. No settlement has exceeded insurance coverage over the past three years. Workers’ Compensation Title 51 RCW requires the City to ensure payment of benefits for job-related injuries
and diseases through the Workers’ Compensation fund or through self-insurance. The City participates in the State of Washington’s Workers’ Compensation program. Premiums are based on
individual employer’s reported payroll hours and insurance rates based on each employer’s risk classification and past experience. The premium is paid by employer and employee contributions.
NOTE 19 – SUBSEQUENT EVENTS There have been no material events subsequent to December 31, 2010 to report. 99
CITY OF AUBURN: 2010 CAFR NOTES TO THE FINANCIAL STATEMENTS 10 0
CITY OF AUBURN: 2010 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES NON-MAJOR GOVERNMENTAL FUNDS THE CITY HAS FOUR TYPES OF NON-MAJOR GOVERNMENTAL FUNDS: Special Revenue Funds Special
revenue funds account for the proceeds of specific revenue sources and are segregated into individual funds to ensure that expenditures are made exclusively for qualified purposes. Special
revenue funds are accounted for on a modified accrual basis. Biennial budgets are adopted with appropriations lapsing at year-end. Debt Service Funds Debt service funds account for payments
of principal and interest on general obligation and special assessment long-term debt. Capital Project Funds Capital project funds account for the City of Auburn's financial resources
used for the acquisition or construction of major non-proprietary capital facilities. Permanent Funds Permanent funds are used to report resources that are legally restricted to the
extent that only earnings, and not principal, may be used for purposes that support City programs that are for the benefit of the City or its citizens. 101
CITY OF AUBURN: 2010 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES TOTAL TOTAL TOTAL TOTAL TOTAL NONMAJOR NONMAJOR NONMAJOR NONMAJOR NONMAJOR SPECIAL REVENUE DEBT SERVICE CAPITAL PROJ
PERMANENT GOVERNMENTAL FUNDS FUNDS FUNDS FUNDS FUNDS ASSETS: CASH AND CASH EQUIVALENTS $ 13,900,196 $ 187,988 $ 6,099,707 $ 1,537,107 $ 2 1,724,998 RECEIVABLES: OTHER RECEIVABLES 59,630
---5 9,630 SPECIAL ASSESSMENTS -609,281 --6 09,281 DUE FROM OTHER GOVERNMENTAL UNITS 51,048 -360,228 -4 11,276 PREPAID EXPENSES 4,320 ---4 ,320 TOTAL ASSETS 14,015,193 797,269 6,459,935
1,537,107 2 2,809,504 LIABILITIES AND FUND BALANCES: CURRENT PAYABLES 295,619 -995,255 -1 ,290,875 DEFERRED REVENUE -609,281 --6 09,281 TOTAL LIABILITIES 295,619 609,281 995,255 -1 ,900,156
FUND BALANCES: RESERVED FOR: DEBT SERVICE -187,988 --1 87,988 ENDOWMENT ---1,404,390 1 ,404,390 UNRESERVED DESIGNATED FOR MITIGATION 4,077,265 ---4 ,077,265 UNDESIGNATED 9,642,309 -5,464,680
132,717 1 5,239,705 TOTAL FUND BALANCES 13,719,574 187,988 5,464,680 1,537,107 2 0,909,348 TOTAL LIABILITIES AND FUND BALANCES $ 14,015,193 $ 797,269 $ 6,459,935 $ 1,537,107 $ 2 2,809,504
DECEMBER 31, 2010 CITY OF AUBURN, WASHINGTON COMBINING BALANCE SHEET NON-MAJOR GOVERNMENT FUNDS 10 2
CITY OF AUBURN: 2010 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES 10 3 TOTAL TOTAL TOTAL TOTAL TOTA NONMAJOR NONMAJOR NONMAJOR NONMAJOR NONMAJOR SPECIAL REVENUE DEBT SERVICE CAPITAL
PROJECTS PERMANENT GOVERNMENTAL REVENUES: TAXES: PROPERTY $ 1,500,000 $ -$ 113,492 $ -$ 1,613,492 RETAIL SALES & USE 147,604 147,604 INTERFUND UTILITY 398,298 ---398,298 UTILITY 1,494,208
---1,494,208 EXCISE 66,549 ---66,549 OTHER 65,234 ---65,234 INTERGOVERNMENTAL 354,856 295,590 8 91,994 -1,542,440 CHARGES FOR SERVICES 1,115,948 -2 1,985 5 2,156 1,190,089 SPECIAL ASSESSMENTS
-43,502 --43,502 INVESTMENT EARNINGS 78,295 32,285 1 4,462 4 ,194 129,236 MISCELLANEOUS 415,871 -9 3,001 -508,873 TOTAL REVENUES 5,489,258 518,981 1,134,935 5 6,350 7,199,524 EXPENDITURES:
CURRENT: SECURITY OF PERSONS & PROPERTY 405,683 ---405,683 TRANSPORTATION 2,660,391 ---2,660,391 ECONOMIC ENVIRONMENT 445,216 ---445,216 CULTURAL AND RECREATION -20,768 7 5,000 -95,768
DEBT SERVICE PRINCIPAL -683,391 --683,391 INTEREST -1,021,714 --1,021,714 CAPITAL OUTLAY --5,805,827 -5,805,827 TOTAL EXPENDITURES 3,511,289 1,725,874 5,880,827 -11,117,990 EXCESS (DEFICIENCY)
OF REVENUES OVER (UNDER) EXPENDITURES 1,977,969 (1,206,893) ( 4,745,892) 5 6,350 ( 3,918,466) OTHER FINANCING SOURCES (USES): ISSURANCE OF DEBT -7,240,000 7,240,000 ISSURANCE OF REFUNDING
BOND 2,150,000 2,150,000 DEBT PREMIUM 156,511 4 3,708 200,220 PAYMENT TO ESCROW AGENT-REFUNDED BOND (2,235,000) ( 2,235,000) INSURANCE RECOVERIES 7 5,000 75,000 TRANSFERS IN (Note 5)
807,377 1,258,291 2,200,196 -4,265,865 TRANSFERS OUT (Note 5) (3,009,168) (120,101) -( 25,605) ( 3,154,874) TOTAL OTHER FINANCING SOURCES (USES) (2,201,791) 1,209,702 9,558,905 ( 25,605)
8,541,211 NET CHANGE IN FUND BALANCES (223,822) 2,809 4,813,013 3 0,745 4,622,745 FUND BALANCES -BEGINNING 13,943,396 185,179 6 51,667 1,506,362 16,286,604 FUND BALANCES -ENDING $ 13,719,574
$ 187,988 $ 5,464,680 $ 1,537,107 $ 20,909,348 CITY OF AUBURN, WASHINGTON COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES NON-MAJOR GOVERNMENT FUNDS FOR THE
YEAR ENDED DECEMBER 31, 2010 L
CITY OF AUBURN: 2010 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES 10 4
CITY OF AUBURN: 2010 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES NON-MAJOR GOVERNMENTAL FUNDS Special Revenue Funds Special revenue funds account for the proceeds of specific revenue
sources and are segregated into individual funds to ensure that expenditures are made exclusively for qualified purposes. Special revenue funds are accounted for on a modified accrual
basis. Annual budgets are adopted with appropriations lapsing each year of the biennium. The City has ten non-major special revenue funds. The Local Street Fund -This fund was created
when Auburn voters approved the Save Our Streets lid lift in 2004 and is used to account for all revenues and expenditures related to this initiative. Hotel/Motel Tax Fund -This fund
was created to account for the hotel/motel taxes levied to support City tourist promotion. Arterial Street Preservation Fund – This fund was created to repair classified arterial streets
and is funded from a one percent utility tax increase that was adopted by Council in 2008. Drug Forfeiture Fund – Money seized and forfeited from drug activity is deposited in this fund
to be used exclusively for drug investigation and enforcement. Local Law Enforcement Block Grant – Accounts for police overtime relating to community oriented policing. The Housing and
Community Development Fund -Accounts for projects associated with the Community Development Block Grant program. The Recreational Trails Fund -Created for the purpose of trail development.
This is a tax-supported fund. The Business Improvement Area Fund -Accounts for special assessments on downtown merchants for ongoing services and for improvements made to the downtown
area. The Cumulative Reserve Fund -Created for the purpose of revenue stabilization for future operations. Mitigation Fees – Accounts for the receipt of contracted mitigation fees for
streets and fire service. 10 5
CITY OF AUBURN: 2010 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES Page 1 of 2 HOTEL/ARTERIAL LOCAL LOCAL MOTEL STREET DRUG LAW STREEETS TAX PRESERVATION FORFEITURE ENFORCEMENT ASSETS:
CASH AND CASH EQUIVALENTS $ 2 ,117,214 $ 9 3,532 $ 412,038 $ 9 64,849 $ 15,439 OTHER RECEIVABLES --59,630 --DUE FROM OTHER GOVERNMENTAL UNITS ---1 2,782 -PREPAID EXPENSES -4 ,320 ---TOTAL
ASSETS 2 ,117,214 9 7,852 471,668 9 77,630 15,439 LIABILITIES AND FUND BALANCES: CURRENT PAYABLES 5 4,640 -19,318 5 1,450 -TOTAL LIABILITIES 5 4,640 -19,318 5 1,450 -FUND BALANCES: UNRESERVED
DESIGNATED FOR MITIGATION -----UNDESIGNATED 2 ,062,575 9 7,852 452,350 9 26,180 15,439 TOTAL FUND BALANCES 2 ,062,575 9 7,852 452,350 9 26,180 15,439 TOTAL LIABILITIES AND FUND BALANCES
$ 2 ,117,214 $ 9 7,852 $ 471,668 $ 9 77,630 $ 15,439 CITY OF AUBURN, WASHINGTON COMBINING BALANCE SHEET NON-MAJOR SPECIAL REVENUE FUNDS DECEMBER 31, 2010 10 6
CITY OF AUBURN: 2010 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES Page 2 of 2 TOTAL HOUSING BUSINESS NONMAJOR COMMUNITY RECREATION IMPROVEMENT CUMULATIVE MITIGATION SPECIAL REVENUE DEVELOPMENT
TRAILS AREA RESERVE FEES FUNDS $ 42,998 $ 8 ,194 $ 4 4,817 $ 5 ,732,032 $ 4 ,469,082 $ 13,900,196 -----59,630 38,266 ----51,048 -----4,320 81,264 8 ,194 4 4,817 5 ,732,032 4 ,469,082
14,015,193 37,965 ---1 32,246 295,619 37,965 ---1 32,246 295,619 ----4 ,077,265 4,077,265 43,299 8 ,194 4 4,817 5 ,732,032 2 59,571 9,642,309 43,299 8 ,194 4 4,817 5 ,732,032 4 ,336,836
13,719,574 $ 81,264 $ 8 ,194 $ 4 4,817 $ 5 ,732,032 $ 4 ,469,082 $ 14,015,193 10 7
CITY OF AUBURN: 2010 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES Page 1 of 2 HOTEL/ARTERIAL LOCAL LAW LOCAL MOTEL STREET DRUG ENFORCEMENT STREETS TAX PRESERVATION FORFEITURE GRANT REVENUES:
TAXES: PROPERTY $ 1,500,000 $ -$ -$ -$ -INTERFUND UTILITY --3 98,298 --UTILITY --1 ,494,208 --EXCISE -6 6,549 ---OTHER -----INTERGOVERNMENTAL --6 3,975 -CHARGES FOR SERVICES -1 8,240
---INVESTMENT EARNINGS 5 ,518 2 64 2 ,097 2 ,382 21 MISCELLANEOUS ---4 05,761 -TOTAL REVENUES 1,505,518 8 5,054 1 ,894,602 4 72,117 21 EXPENDITURES: CURRENT: SECURITY OF PERSONS & PROPERTY
---2 91,683 -TRANSPORTATION 1 ,081,550 -1 ,578,841 --ECONOMIC ENVIRONMENT -8 7,878 ---TOTAL EXPENDITURES 1,081,550 8 7,878 1 ,578,841 2 91,683 -EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER)
EXPENDITURES 4 23,969 ( 2,824) 3 15,761 1 80,434 21 OTHER FINANCING SOURCES (USES): TRANSFERS IN (Note 5) 1 50,000 ----TRANSFERS OUT (Note 5) -----TOTAL OTHER FINANCING SOURCES (USES)
1 50,000 ----NET CHANGE IN FUND BALANCES 5 73,969 ( 2,824) 3 15,761 1 80,434 21 FUND BALANCES -BEGINNING 1 ,488,606 1 00,676 1 36,589 7 45,746 1 5,418 FUND BALANCES -ENDING $ 2 ,062,575
$ 9 7,852 $ 4 52,350 $ 9 26,180 $ 1 5,439 CITY OF AUBURN, WASHINGTON COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES NON-MAJOR SPECIAL REVENUE FUNDS FOR THE
YEAR ENDED DECEMBER 31, 2010 10 8
CITY OF AUBURN: 2010 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES Page 2 of 2 TOTAL HOUSING BUSINESS NONMAJOR COMMUNITY RECREATION IMPROVEMENT CUMULATIVE MITIGATION SPECIAL REVENUE DEVELOPMENT
TRAILS AREA RESERVE FEES FUNDS $ -$ -$ -$ -$ -$ 1,500,000 -----398,298 -----1,494,208 -----66,549 --6 5,234 --65,234 290,881 ----354,856 ----1 ,097,708 1,115,948 1 1 18 124 5 2,626 1
5,144 78,295 10,111 ---415,871 300,992 1 18 6 5,358 5 2,626 1 ,112,851 5,489,258 ----1 14,000 405,683 -----2,660,391 291,501 -6 5,837 --445,216 291,501 -6 5,837 -1 14,000 3,511,289 9,491
1 18 (479) 5 2,626 9 98,851 1,977,969 -7 ,100 -6 50,277 -807,377 -( 44,000) -( 331,559) ( 2,633,609) (3,009,168) -( 36,900) -3 18,718 ( 2,633,609) (2,201,791) 9,491 ( 36,782) (479) 3
71,345 ( 1,634,758) (223,822) 33,808 4 4,976 4 5,296 5 ,360,687 5 ,971,594 13,943,396 $ 43,299 $ 8 ,194 $ 4 4,817 $ 5,732,032 $ 4,336,836 $ 13,719,574 10 9
CITY OF AUBURN: 2010 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES FINAL VARIANCE WITH ORIGINAL AMENDED FINAL BUDGET BUDGET BUDGET ACTUAL POSITIVE (GAAP BASIS) (GAAP BASIS) RESULTS (NEGATIVE)
REVENUES: TAXES: PROPERTY $ 2 ,200,000 $ 1 ,500,000 $ 1,500,000 -INVESTMENT EARNINGS 1 3,600 9 ,000 5 ,518 (3,482) TOTAL REVENUES 2 ,213,600 1 ,509,000 1 ,505,518 (3,482) EXPENDITURES:
CURRENT: TRANSPORTATION 2 ,200,000 2 ,203,800 1 ,081,550 1 ,122,250 TOTAL EXPENDITURES 2 ,200,000 2 ,203,800 1 ,081,550 1 ,122,250 EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES
1 3,600 ( 694,800) 4 23,969 1 ,118,769 OTHER FINANCING SOURCES (USES): TRANSFERS IN (Note 5) 1 50,000 1 50,000 1 50,000 -TRANSFERS OUT (Note 5) ----TOTAL OTHER FINANCING SOURCES (USES)
1 50,000 1 50,000 1 50,000 -NET CHANGE IN FUND BALANCES 1 63,600 ( 544,800) 5 73,969 1 ,118,769 FUND BALANCES -BEGINNING 6 04,641 1 ,488,606 1 ,488,606 -FUND BALANCES -ENDING $ 7 68,241
$ 9 43,806 $ 2,062,575 $ 1 ,118,769 FOR THE YEAR ENDED DECEMBER 31, 2010 CITY OF AUBURN, WASHINGTON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL LOCAL
STREETS SPECIAL REVENUE FUND 11 0
CITY OF AUBURN: 2010 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES FINAL VARIANCE WITH ORIGINAL AMENDED FINAL BUDGET BUDGET BUDGET ACTUAL POSITIVE (GAAP BASIS) (GAAP BASIS) RESULTS (NEGATIVE)
REVENUES: TAXES: EXCISE $ 7 6,000 $ 7 6,000 $ 6 6,549 $ ( 9,451) CHARGES FOR SERVICES 9 ,100 5 7,640 1 8,240 ( 39,400) INVESTMENT EARNINGS 6 00 5 00 2 64 ( 236) TOTAL REVENUES 8 5,700
1 34,140 8 5,054 ( 49,086) EXPENDITURES: CURRENT: ECONOMIC ENVIRONMENT 8 5,500 1 71,380 8 7,878 8 3,502 TOTAL EXPENDITURES 8 5,500 1 71,380 8 7,878 8 3,502 EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 2 00 ( 37,240) ( 2,824) 34,416 NET CHANGE IN FUND BALANCES 2 00 ( 37,240) ( 2,824) 34,416 FUND BALANCES -BEGINNING 3 2,600 1 00,676 1 00,676 -FUND BALANCES
-ENDING $ 3 2,800 $ 6 3,436 $ 9 7,852 $ 34,416 FOR THE YEAR ENDED DECEMBER 31, 2010 CITY OF AUBURN, WASHINGTON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND
ACTUAL HOTEL/MOTEL TAX SPECIAL REVENUE FUND 11 1
CITY OF AUBURN: 2010 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES FINAL VARIANCE WITH ORIGINAL AMENDED FINAL BUDGET BUDGET BUDGET ACTUAL POSITIVE (GAAP BASIS) (GAAP BASIS) RESULTS (NEGATIVE)
REVENUES: TAXES: INTERFUND UTILITY $ 3 83,200 $ 3 83,200 $ 3 98,298 $ 15,098 UTILITY 1 ,116,800 1 ,116,800 1 ,494,208 377,408 INVESTMENT EARNINGS 2 7,500 5 ,000 2 ,097 ( 2,903) TOTAL
REVENUES 1 ,527,500 1 ,505,000 1 ,894,602 389,602 EXPENDITURES: CURRENT: TRANSPORTATION 1 ,500,000 1 ,605,000 1 ,578,841
2 6,159 TOTAL EXPENDITURES 1 ,500,000 1 ,605,000 1 ,578,841 2 6,159 EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES 2 7,500 ( 100,000) 3 15,761 415,761 OTHER FINANCING SOURCES
(USES): TRANSFERS IN (Note 5) ----TRANSFERS OUT (Note 5) ----TOTAL OTHER FINANCING SOURCES (USES) ----NET CHANGE IN FUND BALANCES 2 7,500 ( 100,000) 3 15,761 415,761 FUND BALANCES -BEGINNING
2 7,000 1 36,589 1 36,589 -FUND BALANCES -ENDING $ 5 4,500 $ 3 6,589 $ 4 52,350 $ 415,761 FOR THE YEAR ENDED DECEMBER 31, 2010 CITY OF AUBURN, WASHINGTON SCHEDULE OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL ARTERIAL STREET PRESERVATION SPECIAL REVENUE FUND 11 2
CITY OF AUBURN: 2010 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES FINAL VARIANCE WITH ORIGINAL AMENDED FINAL BUDGET BUDGET BUDGET ACTUAL POSITIVE (GAAP BASIS) (GAAP BASIS) RESULTS (NEGATIVE)
REVENUES: INTERGOVERNMENTAL $ -$ -$ 6 3,975 $ 63,975 INVESTMENT EARNINGS 1 5,000 5 ,000 2 ,382 ( 2,618) MISCELLANEOUS 2 00,000 2 20,000 4 05,761 185,761 TOTAL REVENUES 2 15,000 2 25,000
4 72,117 247,117 EXPENDITURES: CURRENT: SECURITY OF PERSONS & PROPERTY 2 37,300 4 10,900 2 91,683 119,217 TOTAL EXPENDITURES 2 37,300 4 10,900 2 91,683 119,217 EXCESS (DEFICIENCY) OF
REVENUES OVER (UNDER) EXPENDITURES ( 22,300) ( 185,900) 1 80,434 366,334 NET CHANGE IN FUND BALANCES ( 22,300) ( 185,900) 1 80,434 366,334 FUND BALANCES -BEGINNING 4 14,107 7 45,747
7 45,747 -FUND BALANCES -ENDING $ 3 91,807 $ 5 59,847 $ 9 26,181 $ 366,334 FOR THE YEAR ENDED DECEMBER 31, 2010 CITY OF AUBURN, WASHINGTON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCE BUDGET AND ACTUAL DRUG FORFEITURE SPECIAL REVENUE FUND 11 3
CITY OF AUBURN: 2010 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES FINAL VARIANCE WITH ORIGINAL AMENDED FINAL BUDGET BUDGET BUDGET ACTUAL POSITIVE (GAAP BASIS) (GAAP BASIS) RESULTS (NEGATIVE)
REVENUES: INTERGOVERNMENTAL $ 1 0,000 $ 1 0,000 $ -$ ( 10,000) INVESTMENT EARNINGS 1 00 1 00 2 1 ( 79) TOTAL REVENUES 1 0,100 1 0,100 2 1 ( 10,079) EXPENDITURES: CURRENT: SECURITY OF
PERSONS & PROPERTY 1 1,100 1 1,100 -1 1,100 TOTAL EXPENDITURES 1 1,100 1 1,100 -1 1,100 EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES ( 1,000) ( 1,000) 2 1 1 ,021 OTHER FINANCING
SOURCES (USES): TRANSFERS IN (Note 5) 1 ,000 1 ,000 -( 1,000) TRANSFERS OUT (Note 5) ----TOTAL OTHER FINANCING SOURCES (USES) 1 ,000 1 ,000 -( 1,000) NET CHANGE IN FUND BALANCES --2
1 2 1 FUND BALANCES -BEGINNING 1 2,261 1 5,418 1 5,418 -FUND BALANCES -ENDING $ 1 2,261 $ 1 5,418 $ 1 5,439 $ 2 1 FOR THE YEAR ENDED DECEMBER 31, 2010 CITY OF AUBURN, WASHINGTON SCHEDULE
OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL LOCAL LAW ENFORCEMENT GRANT SPECIAL REVENUE FUND 11 4
CITY OF AUBURN: 2010 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES FINAL VARIANCE WITH ORIGINAL AMENDED FINAL BUDGET BUDGET BUDGET ACTUAL POSITIVE (GAAP BASIS) (GAAP BASIS) RESULTS (NEGATIVE)
REVENUES: INTERGOVERNMENTAL $ 6 00,900 $ 6 00,900 $ 2 90,881 $ ( 310,019) INVESTMENT EARNINGS --1 1 MISCELLANEOUS --1 0,111 1 0,111 TOTAL REVENUES 6 00,900 6 00,900 3 00,992 (299,908)
EXPENDITURES: CURRENT: ECONOMIC ENVIRONMENT 6 00,900 5 94,400 2 91,501 3 02,899 TOTAL EXPENDITURES 6 00,900 5 94,400 2 91,501 3 02,899 EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES
-6 ,500 9 ,491 2 ,991 NET CHANGE IN FUND BALANCES -6 ,500 9 ,491 2 ,991 FUND BALANCES -BEGINNING 1 0,231 3 3,809 3 3,809 -FUND BALANCES -ENDING $ 1 0,231 $ 4 0,309 $ 4 3,300 $ 2 ,991
FOR THE YEAR ENDED DECEMBER 31, 2010 CITY OF AUBURN, WASHINGTON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL HOUSING & COMMUNITY DEVELOPMENT SPECIAL
REVENUE FUND 11 5
CITY OF AUBURN: 2010 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES FINAL VARIANCE WITH ORIGINAL AMENDED FINAL BUDGET BUDGET BUDGET ACTUAL POSITIVE (GAAP BASIS) (GAAP BASIS) RESULTS (NEGATIVE)
REVENUES: INVESTMENT EARNINGS $ 8 00 $ 3 00 $ 1 18 $ ( 182) TOTAL REVENUES 8 00 3 00 1 18 ( 182) EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES 8 00 3 00 1 18 ( 182) OTHER
FINANCING SOURCES (USES): TRANSFERS IN (Note 5) 7 ,100 7 ,100 7 ,100 -TRANSFERS OUT (Note 5) -( 44,000) ( 44,000) -TOTAL OTHER FINANCING SOURCES (USES) 7 ,100 ( 36,900) ( 36,900) -NET
CHANGE IN FUND BALANCES 7 ,900 ( 36,600) ( 36,782) ( 182) FUND BALANCES -BEGINNING 4 5,294 4 4,977 4 4,977 -FUND BALANCES -ENDING $ 5 3,194 $ 8 ,377 $ 8 ,195 $ ( 182) FOR THE YEAR ENDED
DECEMBER 31, 2010 CITY OF AUBURN, WASHINGTON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL RECREATION TRAILS SPECIAL REVENUE FUND 11 6
CITY OF AUBURN: 2010 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES FINAL VARIANCE WITH ORIGINAL AMENDED FINAL BUDGET BUDGET BUDGET ACTUAL POSITIVE (GAAP BASIS) (GAAP BASIS) RESULTS (NEGATIVE)
REVENUES: TAXES: OTHER $ 5 3,000 $ 5 3,000 $ 6 5,234 $ 12,234 INVESTMENT EARNINGS 2 ,100 4 00 1 24 ( 276) TOTAL REVENUES 5 5,100 5 3,400 6 5,358 11,958 EXPENDITURES: CURRENT: ECONOMIC
ENVIRONMENT 5 4,000 6 7,300 6 5,837 1 ,463 TOTAL EXPENDITURES 5 4,000 6 7,300 6 5,837 1 ,463 EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES 1 ,100 ( 13,900) (479) 13,421 NET
CHANGE IN FUND BALANCES 1 ,100 ( 13,900) (479) 13,421 FUND BALANCES -BEGINNING 7 0,958 4 5,296 4 5,296 -FUND BALANCES -ENDING $ 7 2,058 $ 3 1,396 $ 4 4,817 $ 13,421 FOR THE YEAR ENDED
DECEMBER 31, 2010 CITY OF AUBURN, WASHINGTON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL BUSINESS IMPROVEMENT AREA SPECIAL REVENUE FUND 11 7
CITY OF AUBURN: 2010 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES FINAL VARIANCE WITH ORIGINAL AMENDED FINAL BUDGET BUDGET BUDGET ACTUAL POSITIVE (GAAP BASIS) (GAAP BASIS) RESULTS (NEGATIVE)
REVENUES: TAXES: INVESTMENT EARNINGS $ 1 46,000 $ 4 0,000 $ 5 2,626 $ 12,626 TOTAL REVENUES 1 46,000 4 0,000 5 2,626 1 2,626 EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES
1 46,000 4 0,000 5 2,626 1 2,626 OTHER FINANCING SOURCES (USES): TRANSFERS IN (Note 5) -6 50,277 6 50,277 0 TRANSFERS OUT (Note 5) -( 453,500) ( 331,559) 121,941 TOTAL OTHER FINANCING
SOURCES (USES) -1 96,777 3 18,718 121,941 NET CHANGE IN FUND BALANCES 1 46,000 2 36,777 3 71,345 134,568 FUND BALANCES -BEGINNING 5 ,371,268 5 ,360,687 5 ,360,687 -FUND BALANCES -ENDING
$ 5 ,517,268 $ 5,597,464 $ 5 ,732,032 $ 134,568 FOR THE YEAR ENDED DECEMBER 31, 2010 CITY OF AUBURN, WASHINGTON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET
AND ACTUAL CUMULATIVE RESERVE SPECIAL REVENUE FUND 11 8
CITY OF AUBURN: 2010 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES 11 9 FINAL VARIANCE WITH ORIGINAL AMENDED FINAL BUDGET BUDGET BUDGET ACTUAL POSITIVE (GAAP BASIS) (GAAP BASIS) RESULTS
(NEGATIVE) REVENUES: CHARGES FOR SERVICES $ 8 10,000 $ 7 60,000 $ 1,097,708 $ 337,708 INVESTMENT EARNINGS 1 00,000 4 4,000 1 5,144 ( 28,856) TOTAL REVENUES 9 10,000 8 04,000 1 ,112,851
308,851 EXPENDITURES: CURRENT: SECURITY OF PERSONS & PROPERTY -1 14,000 1 14,000 -TOTAL EXPENDITURES -1 14,000 1 14,000 -EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES 9 10,000
6 90,000 9 98,851 308,851 OTHER FINANCING SOURCES (USES): TRANSFERS OUT (Note 5) ( 2,508,500) ( 3,641,380) ( 2,633,609) 1,007,771 TOTAL OTHER FINANCING SOURCES (USES) ( 2,508,500) (
3,641,380) ( 2,633,609) 1,007,771 NET CHANGE IN FUND BALANCES ( 1,598,500) ( 2,951,380) ( 1,634,758) 1,316,622 FUND BALANCES -BEGINNING 4 ,588,145 5 ,971,594 5 ,971,594 -FUND BALANCES
-ENDING $ 2 ,989,645 $ 3,020,214 $ 4,336,836 $ 1,316,622 FOR THE YEAR ENDED DECEMBER 31, 2010 CITY CITY OF AUBURN, WASHINGTON SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL MITIGATION SPECIAL REVENUE FUND
CITY OF AUBURN: 2010 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES 12 0
CITY OF AUBURN: 2010 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES NON-MAJOR GOVERNMENTAL FUNDS Debt Service Funds Debt service funds account for payments of principal and interest on
general obligation and special assessment long-term debt. The City of Auburn has one outstanding general obligation issue, and three special assessment funds. The 2010 A Series General
Obligation Bonds (refunding portion) -Accounts for debt service on a Council-approved bond issue to partially advance refund the 1998 General Obligation Library Bonds. The 2010 A Series
(non-refunding portion) and B Series General Obligation Bonds – Accounts for debt service on a Council-approved bond issue to finance acquisition costs of certain condominium units in
the City Hall Annex. The 2010 C Series and 2010 D Series General Obligation Bonds – Accounts for the debt service on a Council-approved bond issue to finance a portion of the downtown
infrastructure improvements in the City’s revitalization area. The L.I.D. Guarantee Fund -This fund provides financial security for outstanding L.I.D. bonds and special assessment debt.
Special Assessment Debt Fund -Accounts for the special assessment collections and debt service payments for all local improvement districts located within the City. 12 1
CITY OF AUBURN: 2010 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES TOTAL GO LIBRARY 2010 2010 NONMAJOR REFUNDING A&B C&D LOCAL LID SPECIAL DEBT SERVICE BOND DEBT ANNEX REVITALIZATION
GUARANTEE ASSESSMENTS FUNDS ASSETS: CASH AND CASH EQUIVALENTS $ 4 6,058 $ 1 04 $ 76,401 $ 6 4,287 $ 1,138 $ 187,988 RECEIVABLES: SPECIAL ASSESSMENTS ----609,281 609,281 TOTAL ASSETS
4 6,058 104 76,401 6 4,287 610,419 $ 797,269 LIABILITIES AND FUND BALANCES: DEFERRED REVENUE ----609,281 $ 609,281 TOTAL LIABILITIES ----609,281 609,281 FUND BALANCES: RESERVED FOR:
DEBT SERVICE 4 6,058 104 76,401 -1,138 123,700 LID GUARANTEE ---6 4,287 -64,287 TOTAL FUND BALANCES 4 6,058 104 76,401 6 4,287 1,138 187,988 TOTAL LIABILITIES AND FUND BALANCES $ 4 6,058
$ 1 04 $ 76,401 $ 6 4,287 $ 610,419 $ 797,269 CITY OF AUBURN, WASHINGTON COMBINING BALANCE SHEET NON-MAJOR DEBT SERVICE FUNDS DECEMBER 31, 2010 12 2
CITY OF AUBURN: 2010 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES TOTAL GO LIBRARY 2010 2010 NONMAJOR REFUNDING A&B C&D LOCAL L I D SPECIAL DEBT SERVICE BOND DEBT ANNEX REVITALZATION
GUARANTEE ASSESSMENTS FUNDS REVENUES: TAXES: RETAIL SALES & USE $ -$ 1 47,604 $ -$ -$ 147,604 SPECIAL ASSESSMENTS ----43,502 43,502 INTERGOVERNMENTAL -223,476 7 2,114 295,590 INVESTMENT
EARNINGS 448 44 187 31,605 32,285 TOTAL REVENUES 448 223,476 2 19,762 187 75,107 518,981 EXPENDITURES: CULTURE AND RECREATION 20,768 ----20,768 DEBT SERVICE PRINCIPAL 250,000 260,000
1 05,000 -68,391 683,391 INTEREST 92,179 674,172 2 20,752 -34,611 1,021,714 TOTAL EXPENDITURES 362,948 934,172 3 25,752 -103,003 1,725,874 EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER)
EXPENDITURES (362,499) (710,696) (105,990) 187 (27,896) (1,206,893) OTHER FINANCING SOURCES (USES): ISSUANCE OF REFUNDING BOND 2,150,000 ----2,150,000 DEBT PREMIUM 156,511 ----156,511
PAYMENT TO ESCROW AGENT -REFUNDED BOND (2,235,000) ----(2,235,000) TRANSFERS IN (Note 5) 299,300 710,800 1 82,390 65,801 -1,258,291 TRANSFERS OUT (Note 5) ---(54,300) (65,801) (120,101)
TOTAL OTHER FINANCING SOURCES (USES) 370,811 710,800 1 82,390 11,501 (65,801) 1,209,702 NET CHANGE IN FUND BALANCES 8,312 104 7 6,401 11,688 (93,697) 2,809 FUND BALANCES -BEGINNING 37,746
--52,599 94,834 185,179 FUND BALANCES -ENDING $ 46,058 $ 104 $ 7 6,401 $ 64,287 $ 1,138 $ 187,988 CITY OF AUBURN, WASHINGTON COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCE NON-MAJOR DEBT SERVICE FUNDS FOR THE YEAR ENDED DECEMBER 31, 2010 12 3
CITY OF AUBURN: 2010 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES 12 4
CITY OF AUBURN: 2010 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES NON-MAJOR GOVERNMENTAL FUNDS Capital Project Funds Capital projects funds account for the City of Auburn's financial
resources used for the acquisition or construction of major non-proprietary capital facilities. Auburn has two non-major capital project funds. The Municipal Park Construction Fund -Accounts
for park related construction activity and includes funding from a portion of field rental income and adult athletic team fees. The Local Revitalization Fund – Accounts for the City
Hall Plaza and the Downtown Promenade project. 12 5
CITY OF AUBURN: 2010 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES MUNICIPAL NONMAJOR PARK LOCAL CAPITAL PROJECT CONSTRUCTION REVITALIZATION FUNDS ASSETS: CASH AND CASH EQUIVALENTS $
411,733 $ 5 ,687,974 $ 6 ,099,707 DUE FROM OTHER GOVERNMENTAL UNITS 360,228 -360,228 TOTAL ASSETS 771,961 5,687,974 6,459,935 LIABILITIES AND FUND BALANCES: CURRENT PAYABLES 424,878
570,377 995,255 TOTAL LIABILITIES 424,878 570,377 995,255 FUND BALANCES: UNRESERVED UNDESIGNATED 347,083 5,117,597 5,464,680 TOTAL FUND BALANCES 347,083 5,117,597 5,464,680 TOTAL LIABILITIES
AND FUND BALANCES $ 771,961 $ 5 ,687,974 $ 6 ,459,935 CITY OF AUBURN, WASHINGTON BALANCE SHEET CAPITAL PROJECT FUND DECEMBER 31, 2010 12 6
CITY OF AUBURN: 2010 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES MUNICIPAL NONMAJOR PARK LOCAL CAPITAL PROJECTS CONSTRUCTION REVITALIZATION FUNDS REVENUES: TAXES: PROPERTY $ 113,492
$ -$ 113,492 INTERGOVERNMENTAL 891,994 -891,994 CHARGES FOR SERVICES 21,985 -21,985 INVESTMENT EARNINGS 1,200 13,261 14,462 MISCELLANEOUS 93,001 -93,001 TOTAL REVENUES 1,121,673 13,261
1,134,935 EXPENDITURES: CULTURAL AND RECREATION 75,000 -75,000 CAPITAL OUTLAY 3,337,954 2,467,873 5,805,827 TOTAL EXPENDITURES 3,412,954 2,467,873 5,880,827 EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES ( 2,291,281) (2,454,612) (4,745,892) OTHER FINANCING SOURCES (USES): ISSUANCE OF DEBT -7,240,000 7,240,000 DEBT PREMIUM -43,708 43,708 INSURANCE RECOVERIES
-CAPITAL ASSETS 75,000 -75,000 TRANSFERS IN (Note 5) 1,911,696 288,500 2,200,196 TRANSFERS OUT (Note 5) --TOTAL OTHER FINANCING SOURCES (USES) 1,986,696 7,572,208 9,558,905 NET CHANGE
IN FUND BALANCES ( 304,584) 5,117,597 4,813,013 FUND BALANCES -BEGINNING 651,667 -651,667 FUND BALANCES -ENDING $ 347,083 $ 5,117,597 $ 5,464,680 CITY OF AUBURN, WASHINGTON STATEMENT
OF REVENUES, EXPENDITURES, AND CAPITAL PROJECT FUND FOR THE YEAR ENDED DECEMBER 31, 2010 CHANGES IN FUND BALANCES 12 7
CITY OF AUBURN: 2010 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES 12 8
CITY OF AUBURN: 2010 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES NON-MAJOR GOVERNMENTAL FUNDS Permanent Funds Permanent funds are used to report resources that are legally restricted
to the extent that only earnings, and not principal, may be used for purposes that support City programs that are for the benefit of the City or its citizens. Auburn has one permanent
fund. The Cemetery Endowed Care Fund -Accounts for non-expendable investments held by the City's trustee. The interest income from investments is available for use by the cemetery fund
for capital enhancement and maintenance. 12 9
CITY OF AUBURN: 2010 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES CEMETERY ENDOWED CARE ASSETS: CASH AND CASH EQUIVALENTS NON-EXPENDABLE TRUST $ 1,537,107 TOTAL ASSETS 1,537,107 FUND
BALANCES: RESERVED FOR: ENDOWMENT 1,404,390 UNRESERVED UNDESIGNATED 132,717 TOTAL FUND BALANCES 1,537,107 TOTAL LIABILITIES AND FUND BALANCES $ 1,537,107 CITY OF AUBURN, WASHINGTON BALANCE
SHEET PERMANENT FUND DECEMBER 31, 2010 13 0
CITY OF AUBURN: 2010 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES CEMETERY ENDOWED CARE REVENUES: INCREASE TO ENDOWMENT FROM LOT SALES $ 52,156 INVESTMENT EARNINGS 4,194 TOTAL REVENUES
56,350 EXCESS OF REVENUES OVER EXPENDITURES 56,350 OTHER FINANCING SOURCES (USES): TRANSFERS OUT (Note 5) (25,605) TOTAL OTHER FINANCING SOURCES (USES) (25,605) NET CHANGE IN FUND BALANCE
30,745 FUND BALANCE -BEGINNING 1,506,362 FUND BALANCE -ENDING $ 1,537,107 FOR THE YEAR ENDED DECEMBER 31, 2010 CITY OF AUBURN, WASHINGTON STATEMENT OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCE PERMANENT FUND 13 1
CITY OF AUBURN: 2010 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES 13 2
CITY OF AUBURN: 2010 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES NON-MAJOR PROPRIETARY FUNDS Enterprise Funds The City's enterprise funds are used to account for operations that are
financed and operated in a manner similar to private business operations. The goods and services these funds provide to the general public are primarily financed by service charges.
Enterprise funds are self-supporting and use the accrual method of accounting. Auburn has three non-major enterprise funds. The Airport Fund -Provides accounting of the activities of
the Auburn Municipal Airport. Sources of income for the fund are leases, rentals, fuel charges, investment interest, and grant funding as available. The Cemetery Fund -Accounts for Mountain
View Cemetery's operations. The Commercial Retail Fund – Accounts for revenues and expenses related to City-owned or leased property that is rented to commercial tenants. 13 3
CITY OF AUBURN: 2010 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES TOTAL NONMAJOR COMMERCIAL PROPRIETARY AIRPORT CEMETERY RETAIL FUNDS ASSETS: CURRENT ASSETS: CASH AND CASH EQUIVALENTS
$ 1 ,083,627 $ 1 59,839 $ -$ 1 ,243,466 RESTRICTED CASH: CUSTOMER DEPOSITS 6 9,413 --6 9,413 CUSTOMER ACCOUNTS 3 ,910 --3 ,910 INVENTORIES -7 ,759 -7 ,759 TOTAL CURRENT ASSETS 1 ,156,949
1 67,598 -1 ,324,547 NONCURRENT ASSETS: LONG-TERM CONTRACTS AND NOTES -4 ,645 -4 ,645 CAPITAL ASSETS: LAND 3 ,653,343 3 42,836 -3 ,996,179 BUILDINGS AND EQUIPMENT 2 ,555,195 1 ,038,622
-3 ,593,817 IMPROVEMENTS OTHER THAN BUILDINGS 8 ,219,629 1 ,082,094 -9 ,301,723 CONSTRUCTION IN PROGRESS 1 5,100 --1 5,100 LESS: ACCUMULATED DEPRECIATION ( 4,613,801) ( 1,199,443) -(
5,813,244) TOTAL CAPITAL ASSETS (NET OF A/D) 9 ,829,465 1 ,264,108 -1 1,093,574 TOTAL NONCURRENT ASSETS 9 ,829,465 1 ,268,753 -1 1,098,219 TOTAL ASSETS 1 0,986,414 1 ,436,352 -1 2,422,766
LIABILITIES: CURRENT LIABILITIES: CURRENT PAYABLES 1 8,527 4 3,469 -6 1,996 EMPLOYEE LEAVE BENEFITS-CURRENT 1 ,870 1 6,140 -1 8,010 GENERAL OBLIGATION BONDS PAYABLE-CURRENT 1 00,000
--1 00,000 CUSTOMER DEPOSITS 6 9,413 --6 9,413 TOTAL CURRENT LIABILITIES 1 89,810 5 9,609 -2 49,419 NONCURRENT LIABILITIES: DEFERRED REVENUE -4 ,645 -4 ,645 EMPLOYEE LEAVE BENEFITS 977
8 ,439 -9 ,416 GENERAL OBLIGATION BONDS PAYABLE 1 ,090,310 4 97,878 -1 ,588,188 TOTAL NONCURRENT LIABILITIES 1 ,091,287 5 10,962 -1 ,602,249 TOTAL LIABILITIES 1 ,281,096 5 70,571 -1
,851,668 NET ASSETS: INVESTED IN CAPITAL ASSETS, NET OF RELATED DEBT 8 ,639,155 7 66,230 -9 ,405,386 RESTRICTED FOR: UNRESTRICTED 1 ,066,162 9 9,550 -1 ,165,712 TOTAL NET ASSETS $ 9
,705,318 $ 8 65,780 $ -$ 1 0,571,098 CITY OF AUBURN, WASHINGTON COMBINING STATEMENT OF FUND NET ASSETS NON-MAJOR ENTERPRISE FUNDS DECEMBER 31, 2010 13 4
CITY OF AUBURN: 2010 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES TOTAL NONMAJOR ENTERPRISE AIRPORT CEMETERY RETAIL FUNDS OPERATING REVENUES: CHARGES FOR SERVICES $ 26,683 $ 708,190
-$ 734,873 INTEREST -1,381 -1,381 OTHER OPERATING REVENUE 618,920 --618,920 TOTAL OPERATING REVENUES 645,603 709,571 -1,355,175 OPERATING EXPENSES: OPERATIONS & MAINTENANCE -624,621
-624,621 ADMINISTRATION 480,733 270,678 -751,411 DEPRECIATION/AMORTIZATION 216,961 57,199 33,328 307,487 OTHER OPERATING EXPENSES 180 10,112 -10,292 TOTAL OPERATING EXPENSES 697,875
962,609 33,328 1,693,812 OPERATING INCOME (LOSS) (52,271) (253,038) (33,328) (338,637) NON-OPERATING REVENUE (EXPENSE): INTEREST REVENUE 3,438 625 -4,063 OTHER NON-OPERATING REVENUES
132,117 287 -132,404 INTEREST EXPENSE (65,618) (21,773) -(87,392) TOTAL NON-OPERATING REVENUE ( EXPENSE) 69,936 (20,861) -49,075 INCOME (LOSS) BEFORE CONTRIBUTIONS & TRANSFERS 17,665
(273,899) (33,328) (289,562) TRANSFERS IN (Note 5) -25,605 -25,605 TRANSFERS OUT (Note 5) --(1,440,613) (1,440,613) CHANGE IN NET ASSETS 17,665 (248,294) (1,473,941) (1,704,570) TOTAL
NET ASSETS BEGINNING OF YEAR 9,687,653 1,114,074 1,473,941 12,275,668 TOTAL NET ASSETS END OF YEAR $ 9,705,318 $ 865,780 $ -$ 10,571,098 COMMERCIAL CITY OF AUBURN, WASHINGTON COMBINING
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET ASSETS NON-MAJOR ENTERPRISE FUNDS FOR THE YEAR ENDED DECEMBER 31, 2010 13 5
CITY OF AUBURN: 2010 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES Page 1 of 2 TOTAL NONMAJOR COMMERCIAL ENTERPRISE AIRPORT CEMETERY RETAIL FUNDS CASH FLOWS FROM OPERATING ACTIVITIES:
CASH RECEIVED FROM USERS $ 645,128 $ 708,190 $ -$ 1,353,317 CASH PAID TO SUPPLIERS (465,586) (258,224) -(723,810) CASH PAID FOR TAXES (180) (10,112) -(10,292) CASH PAID FOR INVENTORY
-3,636 -3,636 CASH PAID TO EMPLOYEES (23,103) (626,952) -(650,055) NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES 156,258 (182,081) -(25,822) CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:
TRANSFERS FROM OTHER FUNDS -25,605 -25,605 OPERATING TRANSFERS OUT --(1,440,613) (1,440,613) NET CASH PROVIDED (USED) BY NONCAPITAL FINANCING ACTIVITIES -25,605 (1,440,613) (1,415,008)
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES: PROCEEDS FROM SALE OF EQUIPMENT --790,336 790,336 PURCHASE OF CAPITAL ASSETS (111,757) (3,833) -(115,590) PROCEEDS FROM OTHER
GOVERNMENTS 132,117 --132,117 PREMIUM & BOND ISSUANCE COSTS ----PRINCIPAL PAYMENT ON DEBT (85,000) --(85,000) INTEREST PAYMENT ON DEBT (57,875) (22,268) -(80,143) NET CASH PROVIDED (USED)
FOR CAPITAL AND RELATED FINANCING ACTIVITIES (122,515) (26,100) 790,336 641,720 CASH FLOW FROM INVESTING ACTIVITIES: INTEREST RECEIVED 3,438 913 -4,350 NET CASH PROVIDED (USED) IN INVESTING
ACTIVITIES 3,438 913 -4,350 NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 37,180 (181,663) (650,277) (794,760) CASH AND CASH EQUIVALENTS-BEGINNING OF YEAR 1,115,859 341,502 650,277
2,107,639 CASH AND CASH EQUIVALENTS-END OF YEAR 1,153,040 159,839 -1,312,879 CASH AT END OF YEAR CONSISTS OF: CASH AND CASH EQUIVALENTS 1,083,627 159,839 -1,243,466 RESTRICTED CASH-CUSTOMER
DEPOSITS 69,413 --69,413 TOTAL CASH $ 1,153,039 $ 159,839 $ -$ 1,312,879 CITY OF AUBURN, WASHINGTON COMBINING STATEMENT OF CASH FLOWS NON-MAJOR ENTERPRISE FUNDS FOR THE FISCAL YEAR ENDED
DECEMBER 31, 2010 13 6
CITY OF AUBURN: 2010 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES Page 2 of 2 TOTAL NONMAJOR COMMERCIAL ENTERPRISE AIRPORT CEMETERY RETAIL FUNDS RECONCILIATION OF NET OPERATING INCOME
TO NEW CASH PROVIDED BY OPERATING ACTIVITIES OPERATING INCOME (LOSS) $ (52,271) $ (253,038) $ (33,328) $ (338,637) ADJUSTMENTS TO RECONCILE OPERATING INCOME TO NET CASH PROVIDED (USED)
BY OPERATING ACTIVITIES: DEPRECIATION 216,961 57,199 33,328 307,487 INVENTORY -3,636 -3,636 LIABILITY INCREASES (DECREASES) : ACCOUNTS & VOUCHERS PAYABLE (8,461) 829 -(7,631) DEPOSITS
PAYABLE (475) --(475) WAGES & BENEFITS PAYABLE 49 6,241 -6,290 COMPENSATED ABSENCES PAYABLE 456 3,053 -3,509 TOTAL ADJUSTMENTS 208,529 70,958 33,328 312,815 ---NET CASH PROVIDED (USED)
BY OPERATING ACTIVITIES $ 156,258 $ (182,081) $ -$ (25,822) SCHEDULE OF NONCASH INVESTING, CAPITAL AND FINANCING ACTIVITIES CAPITAL ASSETS ACQUIRED BY CONTRIBUTED CAPITAL $ -$ -$ -$
-INCREASE (DECREASE) IN FAIR VALUE OF INVESTMENT ----TOTAL NON CASH INVESTING, CAPITAL AND FINANCING ACTIVITIES $ -$ -$ -$ -CITY OF AUBURN, WASHINGTON COMBINING STATEMENT OF CASH FLOWS
NON-MAJOR ENTERPRISE FUNDS FOR THE FISCAL YEAR ENDED DECEMBER 31, 2010 13 7
CITY OF AUBURN: 2010 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES 13 8
CITY OF AUBURN: 2010 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES NON-MAJOR PROPRIETARY FUNDS Internal Service Funds The City of Auburn's internal service funds are used to account for
the financing of goods and services provided by one department of operation to other departments on a cost reimbursement basis. Internal service funds are self-supporting and use the
accrual method of accounting. Auburn has three internal service funds. The Insurance Fund -Provides a source of funds to pay unemployment claims and property and casualty claims which
fall below deductible levels. The Facilities Funds -Accounts for the costs of maintaining various City facilities. The Information Services Fund -Accounts for the costs of purchasing
and maintaining the City’s various computer and telecommunications systems. The Equipment Rental Fund -Accounts for the costs of purchasing, maintaining, and operating Auburn's fleet
of vehicles and related equipment. 13 9
CITY OF AUBURN: 2010 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES INFORMATION EQUIPMENT INSURANCE FACILITIES SERVICES RENTAL TOTAL ASSETS: CURRENT ASSETS: CASH AND CASH EQUIVALENTS $
2,367,322 $ 946,933 $ 4,293,039 $ 5,940,041 $ 13,547,334 CUSTOMER ACCOUNTS -47,260 --47,260 DUE FROM OTHER GOVERNMENTAL UNITS -5,956 2,024 26,155 34,136 INVENTORIES ---133,293 133,293
TOTAL CURRENT ASSETS 2,367,322 1,000,149 4,295,063 6,099,489 13,762,022 NONCURRENT ASSETS: CAPITAL ASSETS: BUILDINGS AND EQUIPMENT --3,858,411 11,601,131 15,459,542 IMPROVEMENTS OTHER
THAN BUILDINGS ---46,591 46,591 LESS: ACCUMULATED DEPRECIATION --( 2,813,368) ( 6,818,291) ( 9,631,659) TOTAL CAPITAL ASSETS (NET OF A/D) --1,045,043 4,829,431 5,874,475 TOTAL NONCURRENT
ASSETS --1,045,043 4,829,431 5,874,475 TOTAL ASSETS 2,367,322 1,000,149 5,340,106 10,928,920 19,636,497 LIABILITIES: CURRENT LIABILITIES: CURRENT PAYABLES 490 285,205 345,270 273,294
904,258 CUSTOMER DEPOSITS -5,025 --5,025 EMPLOYEE LEAVE BENEFITS-CURRENT -31,673 49,851 28,670 110,194 TOTAL CURRENT LIABILITIES 490 321,903 395,121 301,964 1,019,477 NONCURRENT LIABILITIES:
EMPLOYEE LEAVE BENEFITS -16,560 26,063 14,989 57,612 TOTAL NONCURRENT LIABILITIES -16,560 26,063 14,989 57,612 TOTAL LIABILITIES 490 338,463 421,184 316,953 1,077,089 NET ASSETS: INVESTED
IN CAPITAL ASSETS, NET OF RELATED DEBT --1,045,043 4,829,431 5,874,475 UNRESTRICTED 2,366,832 661,686 3,873,879 5,782,536 12,684,933 TOTAL NET ASSETS $ 2,366,832 $ 661,686 $ 4,918,922
$ 10,611,968 $ 18,559,408 CITY OF AUBURN, WASHINGTON COMBINING STATEMENTS OF FUND NET ASSETS INTERNAL SERVICE FUNDS DECEMBER 31, 2010 14 0
CITY OF AUBURN: 2010 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES INFORMATION EQUIPMENT INSURANCE FACILITIES SERVICES RENTAL TOTAL OPERATING REVENUES: CHARGES FOR SERVICES $ -$ 2,977,544
$ 3,902,076 $ 2,474,194 $ 9,353,814 OTHER OPERATING REVENUE -133,617 24,814 -158,431 TOTAL OPERATING REVENUES -3,111,161 3,926,890 2,474,194 9,512,245 OPERATING EXPENSES: OPERATIONS
& MAINTENANCE -2,208,984 3,503,016 1,316,220 7,028,219 ADMINISTRATION 70,177 --548,316 618,493 DEPRECIATION/AMORTIZATION --460,012 991,570 1,451,582 TOTAL OPERATING EXPENSES 70,177 2,208,984
3,963,027 2,856,105 9,098,293 OPERATING INCOME (LOSS) ( 70,177) 902,177 ( 36,137) ( 381,911) 413,951 NON-OPERATING REVENUE (EXPENSE): INTEREST REVENUE 5,040 1,872 11,453 15,236 33,601
OTHER NON-OPERATING REVENUES --40,341 2,015 42,356 GAIN (LOSS) ON SALE OF CAPITAL ASSETS ---9,755 9,755 TOTAL NON-OPERATING REVENUE (EXPENSE) 5,040 1,872 51,794 27,006 85,712 INCOME
(LOSS) BEFORE CONTRIBUTIONS ( 65,137) 904,049 15,656 ( 354,905) 499,663 CAPITAL CONTRIBUTIONS --10,950 96,164 107,114 TRANSFERS IN (Note 5) 197,500 ---197,500 TRANSFERS OUT (Note 5)
-( 450,000) ( 22,530) ( 22,230) ( 494,760) CHANGE IN NET ASSETS 132,363 454,049 4,076 ( 280,971) 309,517 TOTAL NET ASSETS BEGINNING OF YEAR 2,234,469 207,637 4,914,846 10,892,939 18,249,891
TOTAL NET ASSETS END OF YEAR $ 2,366,832 $ 661,686 $ 4,918,922 $ 10,611,968 $ 18,559,408 CITY OF AUBURN, WASHINGTON COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET
ASSETS INTERNAL SERVICE FUNDS FOR THE YEAR ENDED DECEMBER 31, 2010 14 1
CITY OF AUBURN: 2010 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES Page 1 of 2 INFORMATION EQUIPMENT INSURANCE FACILITIES SERVICES RENTAL TOTAL CASH FLOWS FROM OPERATING ACTIVITIES: CASH
RECEIVED FROM USERS $ -$ 3,069,711 $ 3,943,007 $ 2,474,194 $ 9,486,912 CASH PAID TO SUPPLIERS (65,693) (1,213,788) (1,850,152) (1,284,657) (4,414,290) CASH PAID FOR TAXES (3,994) ---(3,994)
CASH PAID FOR INVENTORY ---(21,431) (21,431) CASH PAID TO EMPLOYEES -(825,543) (1,612,992) (460,594) (2,899,128) NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES (69,688) 1,030,380 479,863
707,513 2,148,068 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES: TRANSFERS IN 197,500 ---197,500 TRANSFERS OUT -(450,000) (22,530) (22,230) (494,760) NET CASH PROVIDED (USED) BY NONCAPITAL
FINANCING ACTIVITIES 197,500 (450,000) (22,530) (22,230) (297,260) CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES: PROCEEDS FROM SALE OF EQUIPMENT ---77,734 77,734 PURCHASE
OF CAPITAL ASSETS --(422,923) (160,007) (582,929) PROCEEDS FROM INSURANCE SETTLEMENT ---1,743 1,743 NET CASH PROVIDED (USED) FOR CAPITAL AND RELATED FINANCING ACTIVITIES --(382,582)
(80,530) (463,112) CASH FLOW FROM INVESTING ACTIVITIES: INTEREST RECEIVED 5,040 1,872 11,453 15,236 33,601 NET CASH PROVIDED (USED) IN INVESTING ACTIVITIES 5,040 1,872 11,453 15,236
33,601 NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 132,853 582,252 86,204 619,988 1,421,296 CASH AND CASH EQUIVALENTS-BEGINNING OF YEAR 2,234,469 364,681 4,206,834 5,320,053
12,126,038
CASH AND CASH EQUIVALENTS-END OF YEAR 2,367,322 946,933 4,293,038 5,940,041 13,547,334 CASH AT END OF YEAR CONSISTS OF: CASH AND CASH EQUIVALENTS 2,367,322 946,933 4,293,038 5,940,041
13,547,334 TOTAL CASH $ 2,367,322 $ 946,933 $ 4,293,038 $ 5,940,041 $ 13,547,334 CITY OF AUBURN, WASHINGTON COMBINING STATEMENT OF CASH FLOWS INTERNAL SERVICE FUNDS FOR THE FISCAL YEAR
ENDED DECEMBER 31, 2010 14 2
CITY OF AUBURN: 2010 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES Page 2 of 2 INFORMATION EQUIPMENT INSURANCE FACILITIES SERVICES RENTAL TOTAL RECONCILIATION OF NET OPERATING INCOME
TO NEW CASH PROVIDED BY OPERATING ACTIVITIES OPERATING INCOME (LOSS) $ (70,177) $ 902,177 $ (36,137) $ (381,911) $ 413,951 ADJUSTMENTS TO RECONCILE OPERATING INCOME TO NET CASH PROVIDED
(USED) BY OPERATING ACTIVITIES: DEPRECIATION --460,012 991,570 1,451,582 ASSET (INCREASES) DECREASES : ACCOUNTS RECEIVABLE -(44,314) 16,117 (19,006) (47,203) INVENTORY ---(21,431) (21,431)
LIABILITY INCREASES (DECREASES) : ACCOUNTS & VOUCHERS PAYABLE 489 117,751 25,994 135,126 279,360 WAGES & BENEFITS PAYABLE -42,110 (6,442) (8,967) 26,701 DEPOSITS PAYABLE -(700) --(700)
COMPENSATED ABSENCES PAYABLE -13,356 20,320 12,132 45,808 TOTAL ADJUSTMENTS 489 128,203 516,000 1,089,424 1,734,116 NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES $ (69,688) $ 1,030,380
$ 479,863 $ 707,513 $ 2,148,068 SCHEDULE OF NONCASH INVESTING, CAPITAL AND FINANCING ACTIVITIES CAPITAL ASSETS ACQUIRED BY CONTRIBUTED CAPITAL $ -$ -$ 10,950 $ 96,164 $ 107,114 TOTAL
NON CASH INVESTING, CAPITAL AND FINANCING ACTIVITIES $ -$ -$ 10,950 $ 96,164 $ 107,114 CITY OF AUBURN, WASHINGTON COMBINING STATEMENT OF CASH FLOWS INTERNAL SERVICE FUNDS FOR THE FISCAL
YEAR ENDED DECEMBER 31, 2010 14 3
CITY OF AUBURN: 2010 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES 14 4
CITY OF AUBURN: 2010 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES 14 5 AGENCY FUNDS The agency fund accounts for monies over which the City is strictly a shortterm custodian. Agency
funds typically involve only the receipt, temporary investment, and remittance of fiduciary resources to individuals, private organizations, or other governments.
CITY OF AUBURN: 2010 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES BALANCE BALANCE 1/1/2010 ADDITIONS DEDUCTIONS 12/31/2010 ASSETS: CASH AND CASH EQUIVALENTS $ 1,679,840 $ 3,556,322 $
3,836,093 $ 1,400,069 OTHER CURRENT ASSETS 2,621 208,777 204,816 6,582 DUE FROM OTHER GOVERNMENTAL UNITS -70,884 -70,884 TOTAL ASSETS 1,682,461 3,835,983 4,040,909 1,477,535 LIABILITIES:
DUE TO OTHER GOVERNMENTAL UNITS 1,682,461 5,441,772 5,646,698 1,477,535 TOTAL LIABILITIES $ 1,682,461 $ 5,441,772 $ 5,646,698 $ 1,477,535 CITY OF AUBURN, WASHINGTON STATEMENT OF CHANGES
IN ASSETS AND LIABILITIES AGENCY FUND FOR THE FISCAL YEAR ENDED DECEMBER 31, 2010 14 6
CITY OF AUBURN: 2010 CAFR STATISTICAL SECTION 14 7 City of Auburn STATISTICAL SECTION December 31, 2010 Financial Trends Information Financial trends schedules are intended to provide
users with information to assist them in understanding and assessing how the City’s financial position has changed over time. Schedule 1 Net assets by component.......................................
................................148 Schedule 2 Changes in net assets............................................................................149 Schedule 3 Fund balances, government
funds.........................................................150 Schedule 4 Changes in fund balances, government funds.......................................151 Schedule 5 Tax revenues
by source, government funds ..........................................152 Revenue Capacity Information The objective of providing revenue capacity information is to help users understand
and assess the factors affecting the City’s ability to generate its most significant local source revenues. Schedule 6 Assessed value by type .........................................................
................153 Schedule 7 Property tax data....................................................................................154 Schedule 8 Property tax levies and collections.................
........................................156 Schedule 9 Principal taxpayers-property taxes.........................................................157 Schedule 10 Retail tax collections
by sector...............................................................158 Debt Capacity Information Debt capacity information is intended to assist users to understand and assess the
City’s current levels of outstanding debt and ability to issue additional debt in the future. Schedule 11 Ratios of outstanding debt by type.........................................................15
9 Schedule 12 Computation of legal debt margin ..........................................................160 Schedule 13 Legal debt margin ratios......................................................
...................160 Schedule 14 Computation of net direct and estimated overlapping debt....................161 Schedule 15 Ratios of net general bonded debt to assessed value ....................
.......162 Schedule 16 Pledged revenue bond coverages .........................................................163 Demographic and Economic Information These schedules offer demographic
and economic information to assist users in understanding certain aspects of the environment within which the City operates and to provide information that facilitates comparisons of
financial statement information over time and across governmental units. Schedule 17 Population, income and housing trends .................................................164 Schedule
18 Major employers.....................................................................................165 Operating Information These schedules contain service and infrastructure data
to help users understand how the information in the City’s financial report relates to the services the City provides and the activities it performs. Schedule 19 Staffing levels by department........
.........................................................166 Schedule 20 Operating indicators by department .......................................................167 Schedule 21 Capital
indicators by department............................................................168
CITY OF AUBURN: 2010 CAFR STATISTICAL SECTION 2003 2004 2005 2006 2007 2008 2009 2010 Governmental activities: Invested in capital assets, net of related debt $ 167,057,262 $ 171,921,373
$ 194,121,232 $ 200,814,063 $ 212,611,232 $ 303,564,348 $ 314,691,982 $ 320,506,701 Restricted 2 3,384,709 2 5,615,116 2 3,442,309 2 6,839,342 2 4,519,024 2 8,965,599 1 2,741,566 15,180,467
Unrestricted 2 9,547,005 2 8,490,736 2 4,095,336 2 4,148,157 2 6,774,107 2 5,955,501 4 3,754,879 46,734,364 Total governmental activities net assets 2 19,988,976 2 26,027,225 2 41,658,877
251,801,562 263,904,363 3 58,485,448 371,188,427 382,421,532 Business-type activities: Invested in capital assets, net of related debt 1 04,513,351 1 06,783,634 1 15,137,273 125,265,152
130,515,163 1 44,626,496 150,621,492 152,343,987 Restricted 1 ,919,515 1 ,969,809 2 ,238,611 6 ,987,485 1 ,227,395 9 33,914 2 ,071,219 4,107,128 Unrestricted 2 9,489,320 3 1,849,110
3 2,513,576 2 5,693,517 4 0,655,261 3 5,859,489 2 9,546,169 28,642,334 Total business-type activities net assets 1 35,922,186 1 40,602,553 1 49,889,460 157,946,154 172,397,819 1 81,419,899
182,238,880 185,093,449 Primary government: Invested in capital assets, net of related debt 2 71,570,613 2 78,705,007 3 09,258,505 326,079,215 343,126,395 4 48,190,844 465,313,474 472,850,688
Restricted 2 5,304,224 2 7,584,925 2 5,680,920 3 3,826,827 2 5,746,419 2 9,899,513 1 4,812,785 19,287,595 Unrestricted 5 9,036,325 6 0,339,846 5 6,608,912 4 9,841,674 6 7,429,368 6 1,814,990
7 3,301,048 75,376,698 Total primary government net assets $ 355,911,162 $ 366,629,778 $ 391,548,337 $ 409,747,716 $ 436,302,182 $ 539,905,347 $ 553,427,307 $ 567,514,981 Information
available for 2003-2010 only due to new accounting and reporting standards beginning in 2003 with GASB Statement No. 34. Source: City of Auburn, Finance Department (ACCRUAL BASIS OF
ACCOUNTING) (1) CITY OF AUBURN, WASHINGTON SCHEDULE 1 NET ASSETS BY COMPONENTS LAST EIGHT FISCAL YEARS (1) 14 8
CITY OF AUBURN: 2010 CAFR STATISTICAL SECTION 2003 2004 2005 2006 2007 2008 2009 2010 Expenses Governmental activities: General government $ 5 ,968,367 $ 4 ,235,953 $ 5 ,284,440 $ 6
,462,578 $ 7 ,196,492 $ 8 ,000,715 $ 7 ,567,085 $ 7 ,934,948 Public safety 2 3,045,701 2 6,076,348 2 8,048,087 2 9,804,864 3 3,396,630 2 8,217,844 2 5,675,063 2 5,890,627 Transportation
3 ,071,195 8 ,239,795 7 ,956,286 7 ,619,268 8 ,077,154 1 2,974,861 1 1,471,167 1 1,989,752 Physical environment 1 ,845,059 2 ,415,047 2 ,209,652 2 ,418,543 3 ,269,334 3 ,096,696 3 ,327,836
2 ,498,539 Culture and recreation 5 ,108,683 4 ,949,050 5 ,324,543 5 ,729,431 6 ,539,281 6 ,271,924 7 ,561,569 7 ,307,270 Economic environment 1 ,379,552 2 ,866,473 1 ,919,780 1 ,848,988
2 ,400,031 2 ,608,980 3 ,000,257 2 ,499,631 Health and human services 6 39,678 5 97,423 6 02,726 7 63,156 4 16,456 7 76,224 5 27,029 5 78,247 Interest on long-term debt 3 22,653 3 62,051
1 88,945 2 03,180 1 63,916 2 26,651 4 08,471 1 ,809,322 Total governmental activities expenses 4 1,380,888 4 9,742,140 5 1,534,459 5 4,850,008 6 1,459,294 6 2,173,895 5 9,538,478 6 0,508,335
Business-type activities: Water 6 ,868,291 6 ,913,709 6 ,962,997 7 ,647,935 7 ,873,191 8 ,565,231 8 ,970,215 1 0,042,879 Sewer 9 ,949,763 1 1,207,786 1 2,044,330 1 1,878,252 1 3,974,607
1 4,479,299 1 6,569,297 1 7,794,958 Storm drainage 2 ,955,179 3 ,169,350 3 ,354,899 3 ,852,335 4 ,224,881 5 ,226,823 7 ,275,072 6 ,994,381 Solid waste 8 ,553,801 8 ,645,372 9 ,121,727
9 ,936,222 1 0,368,901 1 0,781,426 1 1,019,606 9 ,894,429 Golf course 8 74,809 9 73,110 1 ,032,733 1 ,020,070 1 ,576,126 1 ,958,703 1 ,909,758 1 ,844,108 Non-major business-type activities
1 ,730,969 1 ,624,365 1 ,593,944 1 ,618,285 1 ,735,118 1 ,720,603 1 ,666,754 1 ,781,204 Total business-type activities expenses 3 0,932,812 3 2,533,692 3 4,110,630 3 5,953,099 3 9,752,824
4 2,732,085 4 7,410,702 4 8,351,960 Total primary government expenses $ 72,313,700 $ 82,275,832 $ 85,645,089 $ 9 0,803,107 $ 101,212,118 $ 104,905,980 $ 106,949,180 $ 108,860,294 Program
revenues Governmental activities: Charges for services General Government $ 3 59,398 $ 5 61,013 $ 6 63,309 $ 8 20,585 $ 1 ,126,258 $ 2 ,316,125 $ 8 14,095 $ 1 ,168,574 Public Safety
1 ,354,900 1 ,767,687 2 ,109,284 2 ,514,867 3 ,100,973 2 ,674,777 2 ,854,530 2 ,938,942 Transportation 5 70,100 4 47,036 1 ,052,110 6 31,340 1 ,930,504 1 ,272,751 1 ,587,850 9 60,532
Physical Environment 2 37,772 3 65,681 2 44,766 4 36,503 5 76,539 2 57,780 1 47,996 8 6,306 Culture and Recreation 5 97,300 6 54,417 7 26,753 8 81,318 1 ,245,122 9 17,544 1 ,048,390
9 62,558 Economic Environment 2 ,088,948 3 ,097,230 3 ,169,262 2 ,590,763 2 ,070,534 1 ,638,579 1 ,654,692 1 ,732,397 Health and human services ------9 89 4 49 Total charges for services
5 ,208,418 6 ,893,064 7 ,965,484 7 ,875,376 1 0,049,930 9 ,077,556 8 ,108,542 7 ,849,758 Operating grants and contributions 1 ,959,919 2 ,178,951 2 ,445,913 2 ,714,324 2 ,923,968 2 ,567,788
3 ,001,401 3 ,022,835 Capital grants and contributions 1 2,336,814 5 ,192,593 1 1,162,241 5 ,174,350 9 ,213,115 9 4,905,563 1 2,806,049 1 0,702,132 Total governmental activities program
revenues 1 9,505,151 1 4,264,608 2 1,573,638 1 5,764,050 2 2,187,013 106,550,907 2 3,915,992 2 1,574,725 Business-type activities: Charges for services 3 1,233,491 3 1,747,066 3 2,658,440
3 6,226,324 3 8,784,127 3 9,883,386 4 2,338,079 4 3,461,742 Operating grants and contributions 3 3,384 3 3,384 5 4,999 4 7,961 4 3,263 5 5,024 8 7,454 7 0,841 Capital grants and contributions
6 ,985,742 4 ,351,278 7 ,857,856 3 ,988,202 1 2,479,500 1 0,670,660 1 ,992,259 7 ,391,111 Total business-type activities program revenues 3 8,252,617 3 6,131,728 4 0,571,295 4 0,262,487
5 1,306,890 5 0,609,070 4 4,417,792 5 0,923,694 Total primary government program revenues 5 7,757,768 5 0,396,336 6 2,144,933 5 6,026,537 7 3,493,903 157,159,977 6 8,333,784 7 2,498,419
Net (expense)/revenue Governmental activities ( 21,875,737) ( 35,477,532) ( 29,960,821) ( 39,085,958) ( 39,272,281) 4 4,377,012 ( 35,622,486) ( 38,933,610) Business-type activities 7
,319,805 3 ,598,036 6 ,460,665 4 ,309,388 1 1,554,066 7 ,876,985 ( 2,992,910) 2 ,571,734 Total primary government net expense $ ( 14,555,932) $ ( 31,879,496) $ ( 23,500,156) $ ( 34,776,570)
$ ( 27,718,215) $ 5 2,253,997 $ ( 38,615,396) $ ( 36,361,876) General revenues and other changes in net assets Governmental activities: Taxes: Property taxes $ 12,440,724 $ 12,598,954
$ 13,464,390 $ 15,186,456 $ 16,164,073 $ 10,804,825 $ 13,362,672 $ 1 4,766,470 Retail sales and use tax 1 3,970,383 1 5,429,527 1 6,333,169 1 7,784,374 1 8,958,484 1 7,620,661 1 4,727,496
1 5,657,081 Interfund utility taxes 1 ,696,389 1 ,714,102 1 ,792,136 1 ,983,652 2 ,095,901 2 ,507,213 3 ,437,526 2 ,788,083 Utility taxes 4 ,225,725 5 ,012,010 5 ,349,713 5 ,893,041
6 ,073,429 8 ,075,355 9 ,071,485 8 ,886,964 Excise taxes 3 ,401,498 3 ,384,515 4 ,633,037 4 ,568,549 3 ,862,692 3 ,477,517 2 ,310,076 1 ,389,030 Other taxes 1 ,699,275 1 ,678,485 1 ,796,224
1 ,859,428 2 ,005,836 2 ,949,430 4 ,607,584 4 ,622,138 Investment earnings 7 69,239 7 08,259 1 ,465,102 2 ,454,694 2 ,993,174 1 ,589,837 5 70,798 3 79,316 Miscellaneous 9 6,168 1 92,469
5 64,416 6 9,037 ( 406,847) 2 ,751,495 6 7,223 2 14,190 Transfers ( 1,225,054) 6 27,000 1 94,286 ( 570,588) ( 371,660) 4 27,740 1 70,605 1 ,463,444 Total governmental activities 3 7,074,347
4 1,345,321 4 5,592,473 4 9,228,643 5 1,375,082 5 0,204,073 4 8,325,465 5 0,166,715 Business-type activities: Investment earnings 3 06,862 4 21,803 8 95,870 1 ,574,444 2 ,098,417 1 ,242,363
3 12,618 1 58,211 Miscellaneous 5 45,087 1 ,287,528 2 ,124,658 1 ,602,274 4 27,522 3 30,472 3 ,669,878 1 ,588,068 Transfers 1 ,225,054 ( 627,000) ( 194,286) 5 70,588 3 71,660 ( 427,740)
( 170,605) ( 1,463,444) Total business-type activities: 2 ,077,003 1 ,082,331 2 ,826,242 3 ,747,306 2 ,897,599 1 ,145,095 3 ,811,891 2 82,835 Total primary government $ 39,151,350 $
42,427,652 $ 48,418,715 $ 52,975,949 $ 54,272,681 $ 51,349,168 $ 52,137,356 $ 5 0,449,550 Change in net assets Governmental activities 1 5,198,610 5 ,867,789 1 5,631,652 1 0,142,685
1 2,102,801 9 4,581,085 1 2,702,979 1 1,233,105 Business-type activities 9 ,396,808 4 ,680,367 9 ,286,907 8 ,056,694 1 4,451,665 9 ,022,080 8 18,981 2 ,854,569 Total primary government
$ 24,595,418 $ 10,548,156 $ 24,918,559 $ 18,199,379 $ 26,554,466 $ 103,603,165 $ 13,521,960 $ 1 4,087,674 Information available for 2003-2010 only due to new accounting and reporting
standards beginning in 2003 with GASB Statement No. 34. Source: City of Auburn, Finance Department (ACCRUAL BASIS OF ACCOUNTING) (1) CITY OF AUBURN, WASHINGTON SCHEDULE 2 CHANGES IN
NET ASSETS LAST EIGHT FISCAL YEARS (1) 14 9
CITY OF AUBURN: 2010 CAFR STATISTICAL SECTION 2003 2004 2005 2006 2007 2008 2009 2010 General Fund Unreserved $ 18,496,495 $ 2 0,702,250 $ 1 5,938,825 $ 1 4,448,328 $ 1 4,462,720 $ 1
3,071,091 $ 1 3,237,851 $ 1 5,382,354 Total general fund 1 8,496,495 2 0,702,250 1 5,938,825 1 4,448,328 1 4,462,720 1 3,071,091 1 3,237,851 1 5,382,354 All other governmental funds
Reserved 1 ,133,206 1 ,270,769 1 ,375,591 1 ,376,798 1 ,501,033 1 ,507,565 1 ,538,038 1 ,592,378 Unreserved, reported in: Special revenue funds 9 ,776,846 1 0,612,069 8 ,967,039 1 0,738,431
1 3,124,661 1 4,463,370 1 5,184,058 1 5,486,918 Capital projects funds 1 3,930,030 1 3,852,020 1 3,111,273 1 4,727,423 9 ,873,331 1 2,990,032 1 0,422,360 1 2,589,604 Permanent funds
2 33,800 2 22,020 2 32,832 1 88,524 1 70,983 1 44,396 1 53,503 1 32,717 Total all other governmental funds $ 2 5,073,882 $ 2 5,956,878 $ 2 3,686,735 $ 2 7,031,176 $ 2 4,670,008 $ 2 9,105,363
$ 2 7,297,959 $ 2 9,801,617 Information available for 2003-2010 only due to new accounting and and reporting standards beginning 2003 with GASB Statement No. 34. Source: City of Auburn,
Finance Department (MODIFIED ACCRUAL BASIS OF ACCOUNTING) (1) CITY OF AUBURN, WASHINGTON SCHEDULE 3 FUND BALANCES, GOVERNMENT FUNDS LAST EIGHT FISCAL YEARS (1) 15 0
CITY OF AUBURN: 2010 CAFR STATISTICAL SECTION 2003 2004 2005 2006 2007 2008 2009 2010 Revenues Taxes $ 3 5,734,592 $ 38,258,799 $ 41,467,853 $ 44,867,161 $ 46,721,651 $ 43,781,530 $
42,514,006 $ 43,069,695 Licenses and permits 1 ,255,582 2 ,248,576 2 ,227,963 1 ,683,320 1 ,606,950 1 ,110,722 1 ,326,875 1 ,311,916 Intergovernmental 6 ,756,672 4 ,697,501 6 ,826,222
6 ,831,240 5 ,766,484 8 ,369,888 9 ,616,067 9 ,656,529 Charges for services 2 ,924,962 3 ,393,178 3 ,939,610 3 ,659,773 5 ,017,224 3 ,784,544 3 ,473,199 3 ,073,168 Fines and forfeits
8 36,244 8 45,721 7 77,241 1 ,054,201 2 ,155,120 2 ,059,771 1 ,911,034 2 ,472,411 Special assessments 1 77,588 1 27,976 1 53,627 7 5,574 5 2,291 5 7,402 1 07,597 4 3,502 Investment earnings
3 00,213 3 36,442 1 ,175,258 1 ,477,368 2 ,456,291 1 ,363,375 4 84,696 3 86,890 Miscellaneous 1 ,102,089 2 ,452,468 1 ,247,252 1 ,865,079 8 77,473 1 ,296,349 1 ,142,428 3 ,023,589 Total
revenues 4 9,087,942 5 2,360,661 5 7,815,026 6 1,513,716 6 4,653,484 6 1,823,581 6 0,575,902 6 3,037,699 Expenditures General government 5 ,737,882 5 ,472,630 5 ,308,663 6 ,062,037 6
,834,084 7 ,719,205 7 ,864,410 7 ,770,957 Public safety 2 2,658,127 2 5,870,873 2 7,169,657 2 9,148,278 3 3,568,753 2 6,023,912 2 5,762,116 2 4,597,986 Transportation 4 ,327,863 5 ,152,344
1 0,337,587 9 ,403,147 7 ,385,929 8 ,910,967 9 ,850,579 1 0,054,434 Physical environment 1 ,911,616 2 ,304,248 2 ,191,796 2 ,435,201 3 ,352,466 3 ,490,636 3 ,192,089 2 ,480,641 Economic
environment 1 ,316,782 2 ,796,902 1 ,877,675 1 ,928,978 2 ,142,282 2 ,530,827 3 ,028,684 2 ,597,849 Health and human services 6 39,678 5 97,423 6 02,726 7 63,156 4 16,456 7 76,224 5
27,029 5 68,911 Culture and recreation 4 ,453,173 4 ,806,217 4 ,815,643 5 ,016,554 6 ,571,275 6 ,296,743 6 ,622,546 6 ,663,881 Capital outlay (2) 3 ,357,827 1 2,100,966 5 07,484 3 ,822,895
7 ,346,316 4 ,778,334 3 0,338,508 8 ,486,382 Debt service: Principal 1 ,162,465 1 ,018,355 1 0,582,246 4 20,631 4 35,093 4 56,655 4 79,661 2 6,683,671 Interest /other 3 33,439 2 48,005
3 15,960 2 47,551 2 03,266 2 64,997 2 96,241 1 ,775,746 Total expenditures 4 5,898,852 6 0,367,963 6 3,709,437 5 9,248,428 6 8,255,920 6 1,248,500 8 7,961,863 9 1,680,457 Excess of revenues
over (under) expenditures 3 ,189,090 ( 8,007,302) ( 5,894,411) 2 ,265,288 ( 3,602,436) 5 75,081 ( 27,385,961) ( 28,642,758) Other financing sources (uses) Transfers in 5 ,458,804 3 ,946,424
9 ,753,294 8 ,873,200 6 ,103,144 7 ,386,082 6 ,994,306 9 ,442,727 Transfers out ( 6,561,204) ( 3,319,424) ( 11,703,804) ( 9,554,816) ( 5,542,988) ( 7,993,842) ( 6,997,801) ( 7,745,568)
Capital leases -1 0,350,000 --6 95,504 1 7,728 2 4,549,186 -Insurance recoveries ------1 14,607 2 00,642 Issuance of debt ---1 42,313 -3 60,000 9 57,278 3 1,172,273 Issuance of refunding
bond -------2 ,150,000 Debt Premium -------3 05,844 Payment to escrow agent -refunded bond -------( 2,235,000) Sales of capital assets 26930 1 19,053 8 11,353 1 27,959 -2 ,698,677 1
27,741 -Total other financing sources (uses) ( 1,075,470) 1 1,096,053 ( 1,139,157) ( 411,344) 1 1 ,255,660 2 ,468,645 2 5,745,317 3 3,290,918 Net change in fund balances $ 2 ,113,620
$ 3 ,088,751 $ ( 7,033,568) $ 1 ,853,944 $ ( 2,346,776) $ 3 ,043,726 $ ( 1,640,644) $ 4 ,648,159 Debt service as a percentage of noncapital expenditures 3.52% 2.62% 17.24% 1.21% 1.05%
1.28% 1.35% 34.21% Information available for 2003-2010 only due to new accounting and reporting standards beginning 2003 with GASB Statement No. 34. (2) Capital outlay of $8,486,382
for 2010 is for Governmental Funds only. Proprietary Funds captial outlay was $7,303,848 for total capital outlay of $15,790,230 as reported on the Reconciliation of the Statement of
Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statememt of Activities. Source: City of Auburn, Finance Department (MODIFIED ACCRUAL BASIS OF ACCOUNTING)
(1) CITY OF AUBURN, WASHINGTON SCHEDULE 4 CHANGES IN FUND BALANCES, GOVERNMENT FUNDS LAST EIGHT FISCAL YEARS (1) 15 1
CITY OF AUBURN: 2010 CAFR STATISTICAL SECTION Fiscal Sales Interfund Year Property & Use Utility Utility Excise Other Total 2001 $ 1 1,016,263 $ 1 3,467,184 $ 1,016,366 $ 6,143,060 $
1,172,417 $ 44,660 $ 3 2,859,950 2002 11,673,939 13,568,518 1,078,845 4,193,983 829,537 52,839 31,397,661 2003 12,396,502 13,970,383 1,696,389 4,225,725 3,401,498 44,095 35,734,592 2004
12,680,361 15,429,527 1,714,102 5,012,010 3,384,515 38,284 38,258,799 2005 13,319,740 16,333,169 1,792,136 5,349,713 4,633,037 40,058 41,467,853 2006 14,582,829 17,784,374 1,983,652
5,893,041 4,568,549 54,716 44,867,161 2007 15,666,016 18,958,484 2,095,901 6,073,429 3,862,692 65,129 46,721,651 2008 12,040,124 17,620,661 2,507,213 8,075,355 3,477,517 60,660 43,781,530
2009 12,914,943 14,727,496 3,437,526 9,071,485 2,310,076 52,480 42,514,006 2010 14,283,303 15,657,081 2,788,083 8,886,964 1,389,030 65,234 43,069,695 Change 2001-2010 29.7% 16.3% 174.3%
44.7% 18.5% 46.1% 31.1% Fiscal years 2001-2002 include tax revenues collected in the general and special revenue funds. Fiscal years 2003-2010 include all governmental funds. TAX REVENUES
BY SOURCE, GOVERNMENT FUNDS LAST TEN FISCAL YEARS SCHEDULE 5 CITY OF AUBURN, WASHINGTON FIGURE 5: TAX REVENUES BY SOURCE 2001 -2010 $0 $5,000 $10,000 $15,000 $20,000 $25,000 $30,000
$35,000 $40,000 $45,000 $50,000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 (Thousands) Excise & other Utility Interfund utility Sales & use Property 15 2
CITY OF AUBURN: 2010 CAFR STATISTICAL SECTION State Total Total Fiscal Property Personal Land and Assessed Direct Year and Other Property Building Value Rate 2001 $ 104,117 $ 751,709
$ 2,510,519 $ 3,366,345 2.93 2002 115,189 800,159 3,104,524 4,019,872 2.93 2003 140,531 787,022 3,344,271 4,271,824 2.87 2004 150,458 742,255 3,599,466 4,492,179 2.88 2005 137,611 704,061
3,834,629 4,676,301 2.87 2006 116,895 623,298 4,359,276 5,099,469 2.73 2007 101,419 607,875 5,055,734 5,765,028 1.48 2008 112,101 640,004 5,804,585 6,556,690 1.49 2009 121,918 764,857
7,837,089 8,723,864 (*) 1.49 2010 114,661 715,534 6,935,683 7,765,878 1.82 Source: King County Dept of Assessments & Pierce County Assessor-Treasurer (*) In 2009, Total Assessed Value
increased significantly due to annexations of Lea Hill and West Hill areas (AMOUNTS EXPRESSED IN THOUSANDS) CITY OF AUBURN, WASHINGTON SCHEDULE 6 ASSESSED VALUE BY TYPE LAST TEN FISCAL
YEARS FIGURE 6: ASSESSED VALUE BY TYPE 2001 -2010 $0 $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 $7,000,000 $8,000,000 $9,000,000 2001 2002 2003 2004 2005 2006
2007 2008 2009 2010 State property Personal property Land and building 15 3
CITY OF AUBURN: 2010 CAFR STATISTICAL SECTION Page 1 of 2 Item 2001 2002 2003 2004 Assessed and estimated actual values (1) Estimated and actual value (in thousands) $ 3,366,345 $ 4,019,872
$ 4,271,824 $ 4,492,179 Assessed value (in thousands) 3,366,345 4,019,872 4,271,824 4,492,179 Ratio of assessed to actual 100% 100% 100% 100% Property tax rates (1) Direct regular and
special General fund $ 2.98932 $ 2.93353 $ 2.92857 $ 2.87319 Debt service funds ----Subtotal $ 2.98932 $ 2.93353 $ 2.92857 $ 2.87319 Overlapping regular and special (1) Auburn School
District $ 5.47999 $ 5.47810 $ 5.35720 $ 5.34914 King County 1.55218 1.44949 1.34948 1.43146 State of Washington 3.14502 2.98946 2.89680 2.75678 Port of Seattle 0.19029 0.18956 0.25895
0.25402 Emergency Medical Services 0.24624 0.25000 0.24143 0.23717 King County Library District 0.55737 0.52581 0.54568 0.53653 Valley Regional Fire Authority ----King County Flood Zone
----King County Ferry District ----Subtotal 11.17109 10.88242 10.64954 10.56510 Total direct and overlapping $ 14.16041 $ 13.81595 $ 13.57811 $ 13.43829 Sources: (1) King County and
Pierce County Deparments of Assessments; real and personal property has been assessed at 100% of the estimated actual value. (2) The decrease in property tax levy to $1.48 is due to
the incorporation of the new Valley Regional Fire Authority effective 1/1/07. The VRFA will assess its own property tax levy in 2008, partially offsetting what was previously levied
by the City. CITY OF AUBURN, WASHINGTON SCHEDULE 7 PROPERTY TAX DATA LAST TEN FISCAL YEARS FIGURE 7A: TEN YEARS CITY PROPERTY TAX RATES 2001 -2010 $1.00 $1.50 $2.00 $2.50 $3.00 $3.502001
2002 2003 2004 2005 2006 2007 2008 (2) 2009 2009 2010 Per $1,000 of Assessed Valuation 15 4
CITY OF AUBURN: 2010 CAFR STATISTICAL SECTION Page 2 of 2 2005 2006 2007 2008 (2) 2009 2010 $ 4,676,301 $ 5,099,469 $ 5 ,765,028 $ 6 ,556,690 $ 8,723,864 $ 7,765,878 4,676,301 5,099,469
5 ,765,028 6 ,556,690 8,723,864 7,765,878 100% 100% 100% 100% 100% 100% $ 2.88000 $ 2.86520 $ 2 .73076 $ 1 .48385 $ 1.48678 $ 1.82336 ------$ 2.88000 $ 2.86520 $ 2 .73076 $ 1 .48385
$ 1.48678 $ 1.82336 $ 5.37195 $ 5.37383 $ 4 .94903 $ 4 .40970 $ 4.37709 $ 5.09382 1.38229 1.32869 1 .28956 1 .20770 1.09772 1.28499 2.68951 2.49787 2 .32535 2 .13233 1.96268 2.22253
0.25321 0.23330 0 .23158 0 .22359 0.19700 0.21597 0.23182 0.21982 0 .20621 0 .30000 0.27404 0.30000 0.53255 0.53424 0 .50027 0 .45336 0.41736 0.48526 ---1 .00000 1.10995 1.17910 ---0
.10000 0.91230 0.10514 ---0 .05500 0.05018 0.00348 10.46133 10.18775 9 .50200 9 .88168 10.39832 10.89029 $ 13.34133 $ 13.05295 $ 1 2.23276 $ 1 1.36553 $ 11.88510 $ 12.71365 FIGURE 7B:
PROPERTY TAX RATES Last Ten Fiscal Years $0.00 $2.00 $4.00 $6.00 $8.00 $10.00 $12.00 2001 2002 2003 2004 2005 2006 2007 2008 (2) 2009 2010 Dollars (Rate Per Thousand) King County Ferry
District King County Flood Zone Valley Regional Fire Authority King County Library District Emergency Medical Services Port of Seattle State of Washington King County Auburn School District
15 5
CITY OF AUBURN: 2010 CAFR STATISTICAL SECTION Total Tax Collections Fiscal Levy for in Subsequent Current Year Year Fiscal Year Amount % of Levy Years Amount % of Levy Levy Balance King
County: 2001 $ 11,133,756 $ 1 0,814,089 97.1% 319,335 $ 1 1,133,424 100.0% $ 3 32 2002 1 1,518,241 1 1,261,600 97.8% 256,107 1 1,517,707 100.0% 5 34 2003 1 2,082,210 1 1,765,654 97.4%
315,783 1 2,081,437 100.0% 7 73 2004 1 2,223,173 1 2,031,253 98.4% 178,573 1 2,209,826 99.9% 1 3,347 2005 1 2,639,133 1 2,393,241 98.1% 240,879 1 2,634,120 100.0% 5 ,013 2006 1 3,399,840
1 3,164,248 98.2% 228,999 1 3,393,247 100.0% 6 ,593 2007 1 3,845,638 1 3,605,301 98.3% 228,945 1 3,834,246 99.9% 1 1,392 2008 9 ,553,486 9,406,398 98.5% 124,483 9,530,881 99.8% 2 2,605
2009 1 1,670,838 1 1,390,684 97.6% 182,031 1 1,572,715 99.2% 9 8,123 2010 1 2,721,658 1 2,459,564 97.9% -1 2,459,564 97.9% 262,094 4 20,806 Pierce County: 2001 $ 1 14,323 $ 105,707 92.5%
$ 8,616 $ 114,323 100.0% $ -2002 2 67,001 258,385 96.8% 8,616 267,001 100.0% -2003 4 35,886 423,834 97.2% 12,052 435,886 100.0% -2004 5 79,828 566,356 97.7% 13,472 579,828 100.0% -2005
7 83,135 769,223 98.2% 13,912 783,135 100.0% -2006 1 ,242,039 1,220,642 98.3% 21,378 1,242,020 100.0% 1 9 2007 1 ,851,622 1,816,706 98.1% 34,876 1,851,582 100.0% 4 0 2008 1 ,226,835
1,177,665 96.0% 44,286 1,221,951 99.6% 4 ,884 2009 1 ,264,690 1,223,668 96.8% 17,092 1,240,760 98.1% 2 3,930 2010 1 ,494,931 1,451,377 97.1% -1,451,377 97.1% 4 3,554 7 2,427 Total current
levy balance $ 493,234 Source: King County Finance and Business Operations Division Pierce County Budget and Finance Department Fiscal Year of the Levy Total Collections to Date CITY
OF AUBURN, WASHINGTON SCHEDULE 8 PROPERTY TAX LEVIES AND COLLECTIONS LAST TEN FISCAL YEARS Collected Within the FIGURE 8: TEN YEARS COLLECTION OF LEVIED PROPERTY TAXES Last Ten Fiscal
Years 95.0% 96.0% 97.0% 98.0% 99.0% 100.0%2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Collection percentage within the fiscal year of the levy Total collection percentage 15 6
CITY OF AUBURN: 2010 CAFR STATISTICAL SECTION Percentage Percentage of Total City of Total City Assessed Taxable Assessed Taxable Taxpayer Value Rank Assessed Value Value Rank Assessed
Value Boeing Company $ 4 69,398,671 1 6.04% $ 6 92,360,854 1 20.57% Glimcher Realty Trust (Supermall) 1 09,755,583 2 1.41% 9 5,867,284 2 2.85% Safeway 8 6,736,849 3 1.12% -Universal
Health 6 5,886,195 4 0.85% 2 6,936,555 5 0.80% Puget Sound Energy 6 4,805,982 5 0.83% 4 6,927,740 4 1.39% Belara Communities LLC 5 1,114,300 6 0.66% Muckleshoot Indian Tribe 5 5,123,700
7 0.71% -Park 277 (formerly EPropertyTax Inc.) 3 3,672,100 8 0.43% UPS Supply Chain Solutions 3 1,155,543 9 0.40% -Wal-Mart Store 3
0,032,484 10 0.39% La Terra Limited Partnership -4 8,493,500 3 1.44% Quadrant Corporation -2 3,619,800 6 0.70% Fritz Companies -2 2,800,000 8 0.68% U.S. West Communications -2 3,542,488
7 0.70% Roundup Co. (Fred Meyer) -1 1,934,514 10 0.35% West Valley 29 Partners -1 2,541,700 9 0.37% TOTALS $ 9 97,681,407 12.85% $ 1 ,005,024,435 29.86% Source: King County and Pierce
County Departments of Assessments Total assessed value for 2010: $ 7 ,765,878,000 Total assessed value for 2001: $ 3 ,366,345,000 2010 2001 CITY OF AUBURN, WASHINGTON SCHEDULE 9a PRINCIPAL
TAXPAYERS-PROPERTY TAXES CURRENT YEAR AND NINE YEARS AGO FIGURE 9a-1: TOP TAXPAYER ASSESSED VALUE AS A PERCENTAGE OF TOTAL ASSESSED VALUE Current Year and Nine Years Ago 0% 10% 20% 30%
40% 2001 2010 FIGURE 9a-2: TOP 10 TAXPAYERS ASSESSED VALUE AS A PERCENTAGE OF TOTAL ASSESSED VALUE Current Year and Nine Years Ago 0% 10% 20% 30% 40% 2001 2010 15 7 Percentage Percentage
Sales of Total City Sales of Total City Tax Sales Taxes Tax Sales Taxes Received Sector (1) Rank Received Received Sector (1) Rank Received $ 3 64,401 Automotive 1 3.3% 2 77,037 Manufacturing
2 2.5% 2 69,958 Automotive 3 2.4% 2 56,232 Automotive 4 2.3% 2 41,986 Automotive 5 2.2% 2 17,191 General retail 6 1.9% 2 10,535 General retail 7 1.9% 2 09,377 Automotive 8 1.9% 2 02,535
Automotive 9 1.8% 1 90,954 Automotive 10 1.7% $ 2 ,440,206 21.8% Source: Washington State Department of Revenue (1) It is illegal to disclose specific taxpayer sales tax information,
so the above information is being provided without identification CITY OF AUBURN, WASHINGTON SCHEDULE 9b PRINCIPAL TAXPAYERS-SALES TAXES CURRENT YEAR AND NINE YEARS AGO 2010 2001 NOT
AVAILABLE
CITY OF AUBURN: 2010 CAFR STATISTICAL SECTION 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 RETAIL TRADE SECTOR Automotive/gas $ 2 ,607 $ 2 ,827 $ 2,862 $ 2,893 $ 3 ,326 $ 3,428
$ 3,643 $ 3 ,255 $ 2,559 $ 2 ,553 Furniture 3 06 276 318 438 218 263 268 241 220 194 Electronics & appliances ----451 288 262 242 132 121 Building materials 3 14 371 412 479 488 594
615 521 358 389 Food stores 5 38 526 401 395 358 346 378 360 352 354 Health & personal care ----120 130 143 152 150 144 Apparel 6 24 646 649 765 836 874 899 873 781 752 General merchandise
4 68 646 909 990 970 941 974 872 833 801 Food/Drink 5 66 560 596 651 ------Misc retail trade 1 ,228 1,017 864 905 724 939 1,334 1 ,234 755 834 6 ,651 6,869 7,011 7,515 7 ,491 7 ,803
8 ,516 7 ,750 6 ,140 6,142 SERVICE SECTOR Information ----506 507 531 489 457 979 Finance & insurance ----86 84 85 85 83 68 Real estate, rental, leasaing ----294 311 330 394 304 288
Professional, scientific, technical ----119 116 162 146 200 191 Administrative, supply & remediation Services ----197 195 301 261 261 239 Educational ----81 81 87 91 42 56 Healthcare
& social serivces ----45 33 88 98 61 37 Arts & entertainment ----104 126 172 171 147 154 Accomodation & food service ----764 833 870 915 827 806 Other services ----477 492 502 457 485
493 ----2,673 2 ,779 3 ,128 3 ,107 2 ,867 3,310 OTHER SECTORS: Services * 1,162 1,154 1,182 1,152 ------Construction 1 ,472 1,448 1,514 2,402 2 ,008 2 ,453 2 ,240 1 ,647 1 ,368 1,322
Manufacturing 3 68 607 882 793 414 486 625 643 383 411 Transportation 4 59 426 400 401 31 26 22 76 31 29 Wholesaling 2 ,184 1,676 1,674 1,795 2 ,313 2 ,571 2 ,943 2 ,306 1 ,073 1,180
Banking 8 9 110 98 127 ------Other business 1 02 126 121 108 73 72 143 72 47 128 Subtotal -other sectors 5 ,836 5,547 5,871 6,779 4 ,839 5 ,607 5 ,973 4 ,744 2 ,902 3,071 GRAND TOTAL
$ 12,487 $ 12,416 $ 1 2,882 $ 14,294 $ 15,003 $ 16,189 $ 1 7,617 $ 15,601 $ 11,909 $ 12,523 OVERLAPPING SALES TAX RATES Basic sales tax rates City of Auburn 0.84% 0.84% 0.84% 0.84% 0.84%
0.84% 0.84% 0.84% 0.84% 0.84% Washington State 6.50% 6.50% 6.50% 6.50% 6.50% 6.50% 6.50% 6.50% 6.50% 6.50% King County 0.16% 0.16% 0.16% 0.16% 0.16% 0.16% 0.26% 0.36% 0.36% 0.36% Regional
Transit Authority 0.40% 0.40% 0.40% 0.40% 0.40% 0.40% 0.40% 0.40% 0.90% 0.90% Metro 0.80% 0.80% 0.80% 0.80% 0.80% 0.80% 0.80% 0.80% 0.80% 0.80% Criminal Justice 0.10% 0.10% 0.10% 0.10%
0.10% 0.10% 0.10% 0.10% 0.10% 0.10% Total basic sales tax rate 8.80% 8.80% 8.80% 8.80% 8.80% 8.80% 8.90% 9.00% 9.50% 9.50% Special sales tax rates Restaurants-for stadium funding 0.50%
0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% Motor vehicles-for multimodal transportation 0.00% 0.00% 0.30% 0.30% 0.30% 0.30% 0.30% 0.30% 0.30% 0.30% (1) Starting in March of
2005, the State of Washington switched from classifiying retail sales using the Standard Industrial Classification (SIC) code to the North American Industry Classification System (NAICS).
As a result, specific trend comparisons of 2005 results to prior year may not be meaningful. Source: City of Auburn Finance department and State of Washington (AMOUNTS EXPRESSED IN THOUSANDS)
CITY OF AUBURN, WASHINGTON SCHEDULE 10 RETAIL TAX COLLECTIONS BY SECTOR LAST TEN FISCAL YEARS FIGURE 10: RETAIL TAX COLLECTIONS CITY OF AUBURN: 2001 -2010 $0 $2,000 $4,000 $6,000 $8,000
$10,000 $12,000 $14,000 $16,000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 (Thousands) Other Wholesaling Manufacturing Contracting Services Other Retail Automotive 15 8
CITY OF AUBURN: 2010 CAFR STATISTICAL SECTION General Special Public Works Total Percentage Fiscal Obligation Assessment Capital Revenue Trust Fund Primary of Personal Per Year Bonds
Bonds Leases Bonds Loans Government Income (1) Capita 2001 $ 7 ,700,000 $ 7 38,904 $ -$ 11,110,000 $ 7,367,157 $ 2 6,916,061 3.85% $ 6 11.94 2002 7 ,402,000 5 48,904 1 ,367,108 10,190,000
7,826,039 2 7,334,051 3.84% 6 11.71 2003 7 ,088,000 3 47,904 6 89,643 9,230,000 7,428,695 2 4,784,242 3.27% 5 46.45 2004 6 ,754,000 2 28,354 10,322,787 8,220,000 7,066,042 3 2,591,183
4.16% 7 06.43 2005 6 ,478,000 1 32,354 -7,020,000 8,679,509 2 2,309,863 2.68% 4 69.98 2006 1 1,210,000 3 6,827 -5,905,000 9,853,410 2 7,005,237 3.04% 5 51.63 2007 1 0,650,000 3 6,827
6 63,553 4,730,000 10,149,419 2 6,229,799 2.77% 5 19.71 2008 1 0,053,000 3 6,827 6 46,799 3,495,000 9,730,324 2 3,961,950 1.82% 3 57.61 2009 3 6,160,850 3 6,827 25,193,600 2,200,000
10,014,943 7 3,606,220 4.11% 1 ,090.70 2010 6 4,816,850 -6 04,685 23,220,000 10,296,024 9 8,937,559 5.35% 1 ,449.21 Source: City of Auburn, Finance Department (1) Personal income data
provided by Hebert Research for 2000, 2004, 2005 and 2010 only; other years are city estimates CITY OF AUBURN, WASHINGTON LAST TEN FISCAL YEARS Govrnmental Activities Business-type Activities
RATIOS OF OUTSTANDING DEBT BY TYPE SCHEDULE 11 FIGURE 11: PER CAPITA DEBT Last Ten Fiscal Years $0 $300 $600 $900 $1,200 $1,5002001 2002 2003 2004 2005 2006 2007 2008 2009 2010 15 9
CITY OF AUBURN: 2010 CAFR STATISTICAL SECTION Parks and Utility Total Councilmanic Excess Levy Open Spaces Purpose Capacity December 31, 2010 -Total Assessed Value: 7,544,294,006 2.5%
of assessed value $ -$ 188,607,350 $ 188,607,350 $ 188,607,350 $ 565,822,050 1.5% of assessed value 113,164,410 (113,164,410) ---Statutory debt limit 113,164,410 75,442,940 188,607,350
188,607,350 565,822,050 Debt outstanding 66,868,426 ---66,868,426 Less redemption fund assets: Available to pay principal 4,137,711 ---4,137,711 Plus liabilities: Payables 2,169,724
---2,169,724 Vacation/sick leave 1,921,929 ---1,921,929 Net debt outstanding 66,822,368 ---66,822,368 Remaining debt capacity $ 46,342,042 $ 75,442,940 $ 188,607,350 $ 188,607,350 $
498,999,683 General Capacity Special Purpose Capacity CITY OF AUBURN, WASHINGTON SCHEDULE 12 COMPUTATION OF LEGAL DEBT MARGIN AS OF DECEMBER 31, 2010 2001 2002 2003 2004 2005 2006 2007
2008 2009 2010 Debt Limit $ 252,476 $ 294,669 $ 336,913 $ 350,782 $ 3 50,782 $ 432,377 $ 4 89,472 $ 6 53,979 $ 577,669 $ 565,822 Total net debt applicable to limit ( 4,871) ( 1,610)
3 ,576 1 7,055 1 7,055 1 1,352 1 0,757 1 0,771 6 2,671 6 6,868 Legal debt margin $ 257,347 $ 296,279 $ 333,337 $ 333,727 $ 3 33,727 $ 421,025 $ 4 78,715 $ 6 43,208 $ 514,998 $ 498,954
Total net debt applicable to the limit as a percentage of debt limit (1.93%) (0.55%) 1.06% 4.86% 4.86% 2.63% 2.20% 1.65% 10.85% 11.82% (EXPRESSED IN THOUSANDS) CITY OF AUBURN, WASHINGTON
SCHEDULE 13 LEGAL DEBT MARGIN RATIOS LAST TEN FISCAL YEARS 16 0
CITY OF AUBURN: 2010 CAFR STATISTICAL SECTION Net Debt Percent Bonded Amount Outstanding Applicable (3) Applicable Net direct debt: Net direct debt -City of Auburn (1) $ 64,816,850 Estimated
net overlapping debt: (2) King County $ 1 ,245,658,534 2.05% $ 25,536,000 Port of Seattle 335,500,000 2.05% 6,877,750 School District No. 210 203,574,076 2.23% 4,539,702 School District
No. 408 92,500,000 77.55% 71,733,750 School District No. 415 230,938,217 1.84% 4,249,263 Rural Library District 131,901,411 3.40% 4,484,648 Valley Regional Fire Authority 18,720,000
89.26% 16,709,472 Pierce County 158,943,371 0.92% 1,462,279 Total estimated net overlapping debt 135,592,864 Total direct and overlapping debt $ 200,409,714 Sources: (1) City of Auburn
finance department; includes both bonded and non bonded general long-term debt (2) Overlapping governments (3) King County Assessors office and Pierce County Assessors office. Calculation
of overlapping debt: applicable percentage is determined by the ration of assessed valuation of taxable property in overlapping unit to valulation of property subject to taxation in
the City of Auburn. COMPUTATION OF NET DIRECT AND ESTIMATED OVERLAPPING DEBT AS OF DECEMBER 31, 2010 CITY OF AUBURN, WASHINGTON SCHEDULE 14 16 1
CITY OF AUBURN: 2010 CAFR STATISTICAL SECTION Ratio of Net Debt Net Bonded Gross Assessed Gross Service Bonded Debt to Bonded Fiscal Value (1) Bonded Amount (3) Debt Assessed Debt per
Year Population (Thousands) Debt (2) Available (Thousands) Value Capita 2001 43,985 $ 3 ,752,065 $ 7 ,700,000 $ 6 3,660 $ 7,636 0.20% $ 175 2002 44,685 3 ,928,917 8 ,769,108 5 ,043 8,764
0.22% 196 2003 45,546 4 ,492,179 7 ,088,000 5 ,278 7,083 0.16% 156 2004 46,135 4 ,677,093 6 ,754,000 7 ,248 6,747 0.14% 146 2005 47,470 5 ,099,469 6 ,478,000 1 4,256 6 ,464 0.13% 136
2006 48,955 5 ,765,028 1 1,210,000 2 5,372 11,185 0.19% 229 2007 50,470 5 ,765,028 1 0,650,000 3 5,810 10,614 0.18% 211 2008 67,005 6 ,556,690 1 0,053,000 4 1,603 10,011 0.15% 150 2009
67,485 8 ,723,864 3 6,160,850 3 7,746 36,123 0.41% 536 2010 68,270 7 ,765,878 6 4,816,850 4 6,058 64,771 0.83% 949 Notes: (1) From Schedule 6 (2) Amount does not include special assessment
and revenue bond debt. (3) Fund balance from debt service fund. RATIOS OF NET GENERAL BONDED DEBT TO ASSESSED VALUE AND GROSS BONDED DEBT PER CAPITA LAST TEN FISCAL YEARS CITY OF AUBURN,
WASHINGTON SCHEDULE 15 FIGURE 15: BONDED DEBT RATIOS Last Ten Fiscal Years -0.0010 0.0020 0.0030 0.0040 0.0050 0.0060 0.0070 0.0080 0.0090 0.01002001 2002 2003 2004 2005 2006 2007 2008
2009 2010 Year Debt/Assessed Value $0 $100 $200 $300 $400 $500 $600 $700 $800 $900 $1,000 Debt/AV Debt/Pop 16 2
CITY OF AUBURN: 2010 CAFR STATISTICAL SECTION Direct(2) Debt Service Requirements Gross (1) Operating Net Revenue Times Year Revenue Expense Available Principal Interest Total Coverage
2001 $ 1 8,638,847 $ 12,866,310 $ 5,772,537 $ 1 ,102,368 $ 579,260 $ 1 ,681,628 3.43 2002 1 9,928,128 13,917,916 6,010,212 1 ,142,368 707,581 1 ,849,949 3.25 2003 2 1,243,060 15,611,753
5,631,307 1 ,407,343 603,357 2 ,010,700 2.80 2004 2 1,958,359 16,834,837 5,123,522 1 ,633,533 539,754 2 ,173,287 2.36 2005 2 4,562,487 18,078,747 6,483,740 1 ,800,568 417,834 2 ,218,402
2.92 2006 2 7,087,351 19,615,315 7,472,036 1 ,718,412 333,016 2 ,051,428 3.64 2007 2 7,492,779 21,237,294 6,255,485 1 ,914,523 281,065 2 ,195,588 2.85 2008 2 7,665,498 23,149,802 4,515,696
1 ,942,938 279,765 2 ,222,703 2.03 2009 3 1,265,941 27,314,611 3,951,330 2 ,002,938 217,283 2 ,220,221 1.78 2010 3 3,115,398 28,749,877 4,365,520 1 ,056,094 150,675 1 ,206,769 3.62 Source:
City of Auburn, Finance Department (1) Includes water, sewer & storm drainage operating, interest and other revenues. (2) Includes water, sewer & storm drainage operating expenses less
depreciation. PLEDGED REVENUE BOND COVERAGES LAST TEN FISCAL YEARS CITY OF AUBURN, WASHINGTON SCHEDULE 16 FIGURE 16: UTILITY BOND COVERAGES Last Ten Fiscal Years $0 $1,000,000 $2,000,000
$3,000,000 $4,000,000 $5,000,000 $6,000,000 $7,000,000 $8,000,0002001 2002 2003 2004 2005 2006 2007 2008 2009 2010 YEAR Net revenue available Debt service requirements 16 3
CITY OF AUBURN: 2010 CAFR STATISTICAL SECTION Item 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 School enrollment (1) 1 3,222 13,504 13,461 13,838 13,760 14,367 14,559 14,716 14,589
14,482 Rate of unemployment (2) 5.1% 6.1% 6.2% 5.1% 4.6% 4.1% 3.7% 4.2% 8.1% 8.7% Population (3) 4 3,985 45,010 45,355 46,135 47,470 48,955 50,470 67,005 67,485 68,270 Personal income
(thousands of dollars) (4) $ 9 74,196 $ 1,040,462 $ 1 ,094,254 $ 1 ,161,714 $ 1,247,566 $ 1,342,818 $ 1 ,444,871 $ 2 ,024,087 $ 1,989,661 $ 1 ,848,752 Per capita personal income (4)
$ 22,148 $ 23,116 $ 24,126 $ 25,181 $ 26,281 $ 2 7,430 $ 2 8,628 $ 3 0,208 $ 29,483 $ 27,080 Housing units (5) One unit 8 ,247 8,671 8,745 8,990 9,105 9,402 9,625 14,186 14,235 14,333
Two or more 7 ,667 7,452 7,790 8,078 8,655 8,943 9,623 10,375 10,391 10,426 Mobile home or special 2 ,302 2,144 2,474 2,421 2,346 2,407 2,382 2,761 2,782 2,794 Total housing units 1
8,216 18,267 19,009 19,489 20,106 20,752 21,630 27,322 27,408 27,553 Sources: (1) Auburn School District No. 408 (2) WA State Employment Security Department -average King County rate
(3) WA State Office of Financial Management (4) Herbert Research (5) Office of Financial Management CITY OF AUBURN, WASHINGTON SCHEDULE 17 POPULATION, INCOME AND HOUSING TRENDS LAST
TEN FISCAL YEARS FIGURE 17: POPULATION AND HOUSING TRENDS Last Ten Fiscal Years 0 10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,0002001 2002 2003 2004 2005 2006 2007 2008 2009
2010 Population Total housing units 16 4
CITY OF AUBURN: 2010 CAFR STATISTICAL SECTION Percentage Percentage of Total City of Total City Employer Product/service Employees Rank Employment Employees Rank Employment The Boeing
Company Aerospace 5 ,179 1 17.5% 10,000 1 50.5% Muckleshoot Tribal Enterprises Gaming 2 ,500 2 8.5% 1 ,200 3 4.7% Auburn School District Education 1 ,800 3 6.1% 1 ,682 2 7.6% Super Mall
Retail 1 ,700 4 5.8% Green River Community College Education 1 ,067 5 3.6% 9 00 4 3.4% Auburn Regional Medical Center Hospital 8 05 6 2.7% 5 00 7 2.8% Emerald Downs Racetrack Horse racing
6 78 7 2.3% 6 00 5 3.4% Safeway Grocerty Retail/Distribution 6 50 8 2.2% Social Security Administration Gov't /public offices 6 00 9 2.0% 5 36 6 3.0% Federal Aviation Administration
Federal government 5 00 10 1.7% 5 00 7 2.8% General Services Administration Federal government 5 00 10 1.7% 3 25 9 2.0% Zones, Inc. Technology reseller 5 00 10 1.7% City of Auburn City
government 4 14 8 2.6% Fred Meyer Retail 2 89 10 1.7% TOTALS 16,479 55.8% 16,946 84.5% Sources: WA Employment Security Department City of Auburn Economic Development Department 2010
2001 CITY OF AUBURN, WASHINGTON SCHEDULE 18 MAJOR EMPLOYERS CURRENT YEAR AND NINE YEARS AGO FIGURE 18A: AUBURN EMPLOYMENT BASE PERCENTAGE OF TOP EMPLOYER COMPARED TO ALL EMPLOYERS Last
Ten Fiscal Years 0% 20% 40% 60% 80% 100% 2001 2010 Top employer All employers FIGURE 18B: AUBURN EMPLOYMENT BASE PERCENTAGE OF TOP 10 EMPLOYERS COMPARED TO ALL EMPLOYERS Last Ten Fiscal
Years 0% 20% 40% 60% 80% 100% 2001 2010 Top 10 employers All employers 16 5
CITY OF AUBURN: 2010 CAFR STATISTICAL SECTION Department 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Mayor 3 3 4 4 8 1 0 1 1 1 2 1 2 10 Human resources 6 7 7 7 7 1 5 1 7 1 8 9
7 Finance 2 6 2 7 2 8 2 8 2 1 2 3 2 4 2 5 2 5 21 Municipal court 1 1 1 2 1 2 1 3 1 4 1 5 1 7 2 1 2 1 17 Legal 1 3 1 3 1 3 1 3 1 3 1 3 1 4 1 6 1 6 13 Planning 1 2 1 3 3 1 3 1 3 2 2 5
2 9 3 4 3 4 24 Police 112 114 115 115 1 17 118 1 21 152 1 52 131 Fire (1) 7 8 8 1 8 1 8 1 8 2 8 2 ----Public works 6 2 6 2 4 8 4 9 4 8 4 8 5 4 6 3 6 3 43 Parks & recreation 3 4 3 5 3
7 3 7 3 6 3 6 3 8 4 0 4 0 35 Street 13 1 3 1 3 1 3 1 1 1 1 1 5 1 4 1 4 12 Water 1 4 1 4 1 6 1 6 1 6 1 6 1 9 2 0 2 0 22 Sewer 7 7 7 6 8 8 1 1 1 1 1 1 11 Storm utility 7 7 7 7 9 9 1 2
1 6 1 7 16 Solid waste 6 6 2 2 2 2 2 2 2 2 Airport 3 3 3 3 ------Cemetery 7 7 7 7 6 6 7 7 7 7 Golf course 6 6 6 6 6 6 9 9 9 8 Facilities (2) --------1 0 10 Information services ----1
0 1 1 1 5 1 8 1 8 14 Equipment Rental 8 8 1 0 1 0 1 0 9 9 1 0 1 1 6 TOTAL 4 28 438 447 448 4 56 463 4 24 488 4 4 90 408 Source: City of Auburn Finance Department (1) No data is presented
for Fire employees for 2007 and thereafter due to incorporation of Fire department into a separate legal entity effective 1/1/07. (2) Facilities Division was previously included in the
Human Resources Department prior to the creation of a new Internal Service fund in 2009. (3) Due to the economic downturn, the City froze 82.5 of the total 490 positions in 2009. CITY
OF AUBURN, WASHINGTON SCHEDULE 19 STAFFING LEVELS BY DEPARTMENT LAST TEN FISCAL YEARS FIGURE 19: STAFFING LEVELS BY TYPE OF SERVICE Last Ten Fiscal Years -20 40 60 80 100 120 140 160
Police Fire Public works/street Parks & recreation Utilities Administration Planning Other Number of Employees 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 16 6
CITY OF AUBURN: 2010 CAFR STATISTICAL SECTION 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Planning Commercial permits 431 434 337 217 240 248 214 95 112 145 Commercial construction
value ($1,000's) $ 7 4,924 $ 5 6,257 $ 5 0,269 $ 7 7,121 $ 7 1,047 $ 6 3,658 $ 6 3,658 $ 2 2,887 $ 5 8,896 $ 2 1,834 Residential permits 422 421 583 766 604 485 293 165 85 184 Residential
construction value ($1,000's) $ 6 5,326 $ 5 5,108 $ 8 9,415 $ 1 55,551 $ 1 12,125 $ 6 1,872 $ 6 1,872 $ 2 7,048 $ 1 5,739 $ 3 6,602 Police Crimes: Arson 35 46 45 43 33 36 30 24 19 23
Assault 143 169 145 135 168 158 143 154 163 137 Burglary 686 578 596 861 623 686 590 630 590 725 DUI 204 170 189 240 218 158 145 194 193 192 Homicide -3 2 1 1 -1 -3 3 Narcotics 606 499
506 399 472 493 368 439 440 442 Rape 19 33 32 24 13 24 12 14 13 15 Robbery 69 68 69 91 85 122 92 102 92 79 Theft 2,300 2,243 2,082 2,344 2,509 2,216 1,962 2,343 2,362 2,533 Theft -motor
vehicle 692 875 816 802 869 642 672 639 370 569 Traffic: Non-criminal 9,072 9,643 9,946 7,962 7,962 6,850 4,978 6,865 6,794 7,788 7,182 Parking 1,803 2,188 1,821 1,827 2,140 3,965 4,802
3,740 4,026 4,648 Fire (5) Type of response: Building 103 101 114 107 94 98 ----Non-building 236 260 305 249 198 238 ----Alarm systems 562 511 486 497 474 524 ----Service 387 370 465
493 493 618 ----Other 747 819 917 940 870 979 ----First Aid 4,902 5,177 5,155 5,562 5,679 5,616 ----Parks and Recreation Athletic teams 464 467 523 507 445 459 479 416 428 439 Recreation
activities 1,483 1,527 1,708 1,896 2,086 2,069 2,719 2,056 2,335 2,281 Golf course rounds (1) 53,864 53,967 41,753 45,336 47,501 43,454 50,500 54,993 50,572 49,950 Senior center visits
(2) 29,572 32,121 31,418 32,103 35,308 35,381 34,427 36,805 41,032 41,350 Cultural activities 56 88 55 56 56 58 84 84 90 101 Museum audience served (3)(4) 11,000 8,994 9,417 10,274 9,340
9,400 12,090 11,921 11,835 12,570 Cemetery burials 301 277 272 271 277 277 245 289 232 228 Sources: Various city departments (1) 2003 -Portion of golf course closed for two months (2)
2001 2001 -Senior center had reduced programs and 16 additional closure dates to facilitate move to new facility (3) 2002 -Museum actual service has increased; decline in count due to
change in calculation method (4) 2001 -Museum closed for renovations for several months (5) 2007 -Effective 1/1/2007 Valley Regional Fire Authority formed replacing the Fire Departments
of Auburn, Pacific and Algona. CITY OF AUBURN, WASHINGTON SCHEDULE 20 OPERATING INDICATORS BY DEPARTMENT LAST TEN FISCAL YEARS 16 7
CITY OF AUBURN: 2010 CAFR STATISTICAL SECTION 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 General City Total area (square miles) 22.6 22.7 22.8 22.8 23.3 23.4 23.4 30.0 30.1 30.1
Public Works Miles of streets 160 166 180 180 180 180 186 272 276 283 Number of streetlights 2,790 2,934 2,934 3,355 3,410 3,575 3,602 5,074 5,392 5,523 Number of traffic signals n/a
n/a n/a 66 72 72 72 83 85 86 Utilities Number of services 11,645 12,014 12,077 12,144 12,833 12,633 12,954 13,050 13,076 13,372 Miles of water mains 243 247 252 254 278 279 287 283 293
297 Miles of sanitary sewers 166 149 176 177 177 177 182 205 207 213 Miles of storm sewers n/a n/a n/a 185 190 195 197 197 204 226 Number of fire hydrants n/a n/a n/a 2,270 2,285 2,300
2,369 2,969 2,998 3,044 Public Safety Number of fire stations (1) 3 3 3 3 3 3 ----Number of police stations 3 3 2 2 2 2 2 2 2 2 Parks and Recreation Total park acreage 547 533 535 592
596 596 596 598 602 602 Number of softball/baseball fields n/a n/a n/a 19 19 19 19 19 18 18 Number of soccer/football fields n/a n/a n/a 3 3 3 3 3 3 Number of playgrounds n/a n/a n/a
25 29 30 30 32 33 35 Sources: Various city departments (1) Effective 1/1/2007 Valley Regional Fire Authority formed replacing the Fire Departments of Auburn, Pacific and Algona. CITY
OF AUBURN, WASHINGTON SCHEDULE 21 CAPITAL ASSET INDICATORS BY DEPARTMENT LAST TEN FISCAL YEARS 18 16 8
CITY OF AUBURN: 2010 CAFR STATISTICAL SECTION 16 9 Prepared by: Shelley Coleman Finance Director Rhonda Ewing Financial Services Manager Martin Chaw Financial Planning Manager Lanny
Petitjean Senior Accountant Michelle Surdez Senior Accountant Consuelo Rogel Financial Analyst Teri Ashton Accountant Mark Gregg Utility & Accounting Services Manager Evelyn McOsker
Finance Secretary
CITY OF AUBURN: 2010 CAFR STATISTICAL SECTION 17 0