HomeMy WebLinkAbout2011 CAFR2011Comprehensive Annual Financial Report
for the year ended december 31, 2011
2011Comprehensive Annual Financial Report
for the year ended december 31, 2011
CITY OF AUBURN
WASHINGTON
COMPREHENSIVE ANNUAL
FINANCIAL REPORT
Fiscal Year January 1, 2011 through December 31, 2011
Prepared by
Finance Department
Shelley Coleman, Finance Director
City of Auburn: 2011 CAFR Table of Contents
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COMPREHENSIVE ANNUAL FINANCIAL REPORT
For the Year Ended December 31, 2011
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 Net Assets ................................................................................................................ 35
Statement of Activities ................................................................................................................. 36
Fund Financial Statements:
Governmental Funds
Balance Sheet............................................................................................................................ 39
Statement of Revenues, Expenses and Changes in Fund Balance ................................................. 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
Proprietary Funds:
Statement of Net Assets ............................................................................................................ 46
Statement of Revenues, Expenses, and Changes in Fund Net Assets ............................................ 47
Statement of Cash Flows ........................................................................................................... 48
Fiduciary Funds:
Statement of Fiduciary Net Assets .............................................................................................. 52
Statement of Changes in Fiduciary Net Assets ............................................................................ 53
Notes to the Financial Statements .......................................................................................................... 55
Combining and Individual Fund Financial Statements and Schedules
Non-Major Government Funds:
Combining Balance Sheet ......................................................................................................... 102
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances ...................... 103
Non-Major Special Revenue Funds:
Combining Balance Sheet ......................................................................................................... 106
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances ...................... 108
Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual:
Local Street Special Revenue Fund ..........................................................................................110
Hotel/Motel Tax Special Revenue Fund ................................................................................. 111
Arterial Street Preservation Special Revenue Fund ...................................................................112
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Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual: Page
(continued)
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
Non-Major Debt Service Funds:
Combining Balance Sheet ......................................................................................................... 122
Combining Statement of Revenues, Expenditures, and Changes in Fund Balance ....................... 123
Capital Project Fund:
Combining Balance Sheet ......................................................................................................... 126
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances ...................... 127
Permanent Fund:
Balance Sheet........................................................................................................................... 130
Statement of Revenues, Expenditures and Changes in Fund Balance ...........................................131
Non-Major Enterprise Funds:
Combining Statement of Net Assets .......................................................................................... 134
Combining Statement of Revenues, Expenses, and Changes in Fund Net Assets ......................... 135
Combining Statement of Cash Flows ........................................................................................ 136
Internal Service Funds:
Combining Statements of Net Assets ......................................................................................... 140
Combining Statement of Revenues, Expenses, and Changes in Fund Net Assets ..........................141
Combining Statement of Cash Flows ........................................................................................ 142
Agency Fund:
Statement of Changes in Assets and Liabilities ........................................................................... 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 John Holman Wayne Osborne
John Partridge Bill Peloza Rich Wagner Largo Wales
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
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June 29, 2012
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, 2011. 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, 2011. 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 principles and in conformance with financial reporting
standards issued by the Governmental Accounting Standards Board (GASB).
City management has developed and evaluated a comprehensive internal control structure that is designed
to protect the City’s assets from loss, theft, or misuse and to compile sufficient reliable information for the
preparation of the City’s financial statements in conformity with generally accepted accounting principles.
Because the cost of internal controls should not outweigh the benefits, the City’s internal control structure
is designed to provide reasonable, rather than absolute, assurance that the financial statements will be free
from material misstatement. As management, we attest that, to the best of our knowledge and belief, this
financial report is complete and reliable in all material aspects.
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City of Auburn: 2011 CAFR Letter of Transmittal
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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, 2011 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
2010 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 40% 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 70,705 people within its incorporated
limits.
The City provides a wide range of services, both beneficial and necessary, to its residents as well as to the
adjacent area. These services include police protection; parks and recreational facilities that include a
senior center, gymnasium, 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
City of Auburn: 2011 CAFR Letter of Transmittal
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Correctional Entity providing jail facilities. Both these organizations provide 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 2011, for 2012
property tax collection, was $7.199 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 and beginning in 2012 will be undergoing a
renovation to modernize and update the functional features of the 16 year old property. 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 a
Safeway distribution center and a recently completed activity center. Auburn has also been a center for
automobile sales for a number of years, drawing customers throughout the Puget Sound region.
Since 2002 the City’s collected total assessed property valuation has risen from $4.02 billion, collected in
2002 to $7.56 billion, collected in 2011. The sales tax receipts went from $13.6 million to $16.2 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 $16.2 million in 2011. 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 2011. The 2011 State Legislature reduced the
payments by 3.4% starting 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 thirty five percent of the General Fund budget, increased to $16.2
million (+3.5%) 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). After freezing 82.5 FTEs in 2009 (these positions have been
removed from the 2011 and 2012 biennial budget), the number remains consistent with 2010 levels at the
lowest it has been in the past 10 years.
City of Auburn: 2011 CAFR Letter of Transmittal
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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 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, Activity Center 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 2002 through 2011 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
City of Auburn: 2011 CAFR Letter of Transmittal
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current economic downturn and recent recession years of 2001 and 2002, but 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
fund contains a satisfactory balance, a significant Insurance fund has been set aside for contingencies, and
the Equipment Rental fund is adequate for vehicle replacement. The Proprietary and Fiduciary funds are
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 City initiated a review of the City’s water, sewer and stormwater utility rates in 2011. This review is
expected to be completed in 2012 and will evaluate the utility rate revenue requirements through 2017.
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; street improvements including rehabilitation of local neighborhood streets, the A
Street NW corridor, and the M street underpass project; economic development improvements such as the
downtown promenade/utility project and cultural and recreation improvements including construction of
the Auburn Activity Center. 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.
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. Long-term plans will be focused
on ensuring the City continues to be an economically strong and viable city.
III. FINANCIAL INFORMATION
A. Cash Management
The City invests in U.S. Treasury and Agency Issues, Prime Bankers Acceptances, Time Deposits, and
Repurchase Agreements. Investment policies and procedures, established by the Mayor and adopted by
the City Council, require the City to establish a trustee to take delivery of all investment transactions at
time of payment. The City has contracted with the Bank of New York to provide delivery versus payment
trustee services on all government agency investments. The State of Washington maintains an investment
pool to provide economies of scale in investing to smaller- and medium-sized cities in the State. The City
City of Auburn: 2011 CAFR Letter of Transmittal
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uses this service for all funds not invested in longer-term securities. The pool operates under the same legal
restrictions that apply to all municipalities in the State and, consequently, uses the same instruments as
listed above. The State also takes delivery of all investment transactions.
The City has adopted a comprehensive investment policy statement to guide City investment practices.
These policies are closely patterned after the recommendations in Investing Public Funds published by the
Government Finance 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 self-insure 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 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 2011 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 2011. 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.
City of Auburn: 2011 CAFR Letter of Transmittal
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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, 2010. This was the
twenty-fourth 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 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 twenty years. The City was one of just twenty-two cities in the state to receive both the
Certificate of Achievement for Excellence in Financial Reporting and the Distinguished Budget Presentation
award for 2010.
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
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City of Auburn: 2011 CAFR Management’s Discussion and Analysis
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MANAGEMENT’S DISCUSSION AND ANALYSIS
The City of Auburn’s (the “City”) discussion and analysis is designed to:
Assist the reader in focusing on significant financial issues
Provide an overview of the City’s financial activity
Identify changes in the City’s financial position (its ability to meet future years’ challenges)
Identify any material deviations from the approved budget
Identify individual fund issues or concerns
Management’s Discussion and Analysis is designed to focus on the current year’s activities, resulting changes
and currently known facts. Therefore, it should be read in conjunction with the Transmittal Letter and the
City’s financial statements.
Financial Highlights
Total government-wide net assets, the amount by which total assets exceed total liabilities, equal
$601.4 million, an increase of $33.9 million or 5.9%. Of this, a total of $507.2 million, or 84.3%
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 $5.2
million of net assets is restricted for purposes of endowment and debt service. Of the remaining
$88.9 million of net assets, $13.1 million is legally restricted, reserved by City policy for specific
purposes, or is restricted for use by the City’s utilities and $75.8 million is unrestricted.
The net increase in government-wide net assets during 2011 was $33.9 million. Of this amount,
$34.3 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 $18 million during 2011,
primarily reflecting an increase in capital grants and contributions and general revenues. The
increase in capital grants and contributions were attributable to receipt of federal grants to support
the construction of the City Hall Plaza and Promenade and M Street improvements. General
revenues increased from $48.7 million in 2010 to $51 million in 2011, reflecting a general but very
gradual improvement in the regional economy.
Business-type net assets increased by $15.9 million to $200.9 million during 2011 as a result of
capital contributions related to the City’s water, sewer and storm water utilities.
Governmental fund balances at year-end totaled $41.7 million. Of this amount, $14.2 million, or
28%, is unassigned and available to fund ongoing activities.
Compared to 2010, total governmental fund balances decreased by $3.4 million. This decrease
reflects the spending of resources for local revitalization funding.
Total City debt payments during the year, net of compensated absences and other post
employment benefits, were $2.56 million. Total outstanding debt, including bonds and loans,
totaled $102 million at December 31, 2011. This ending debt balance is a decrease of $1.5 million
from 2010 and is the result of scheduled debt repayments. See note 9 for further information on
debt activity during the year.
City of Auburn: 2011 CAFR Management’s Discussion and Analysis
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Other City Highlights:
Parks and Community Development
Construct the South Division Street Promenade Project; construction completion and reopening of
Division Street to vehicular traffic is expected to occur during the first quarter 2012. This project
includes development of a comprehensive promenade and includes upgrades to all utilities and
new roadway corridor treatments. This City received a $3.0 million Federal Economic
Development Administration grant in support of this project.
Completed construction of the City Hall Plaza project.
Completed design and begin construction replacement of existing downtown pedestrian lighting.
Conduct annual repairs and replacement of existing sidewalks at various locations throughout the
City.
Completed construction of the Auburn Activity Center. This project was partially funded by a
grant from the Boys and Girls club through the US Department of Commerce.
Public Works
Replace the Ellingson sewer pump station.
Completed maintenance and repairs at the White River storm pump station.
Complete construction of a new reservoir serving the Lakeland Hills Service area.
Continued reconstruction of West Valley Highway between State Route 18 and West Main Street,
including signal improvements at West Main Street.
Update and replace the existing pump station in the Lakeland Hills water service area.
Completed design and begin construction of the arterial street corridor “A” Street Northwest from
14th Street NW out to 3rd Street NW.
Completed design of the “M” street grade separation project. This project will lower “M” Street SE
from the Burlington Northern Santa Fe Stampede Pass Rail line to improve traffic flow and safety.
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.
City of Auburn: 2011 CAFR Management’s Discussion and Analysis
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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, and
cemetery. Governmental activities are primarily supported by taxes, charges for services, and grants while
business-type activities are self-supporting through user fees and charges.
Fund Financial Statements
The Fund Financial Statements are the traditional reporting format for governments. A fund is a fiscal and
accounting entity with a self-balancing set of accounts used to account for specific activities or meet certain
objectives. While the government-wide statements present the City’s finances based on the type of activity
(general government vs. business type), the Fund Financial Statements are presented by fund type, such as
the general fund, special revenue funds and proprietary funds, with the focus on major funds.
Governmental Funds are used to account for essentially the same functions that are reported as
governmental activities in the government-wide financial statements. The government major fund is
presented utilizing the “sources and uses of liquid resources” basis. This is the manner in which the budget
is typically developed. The basis of accounting is different between the governmental fund statements and
the government-wide financial statements. The governmental fund statements focus on the near-term
revenues/financial resources and expenditures while the government-wide financial statements include both
near-term and long-term revenues/financial resources and 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 governmental fund
City of Auburn: 2011 CAFR Management’s Discussion and Analysis
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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 Balance. 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 in the government-wide
statements, but in greater detail. The City’s enterprise fund statements provide information on the City’s
four utilities (water, sanitary sewer, storm water, and solid waste) as well as the City-owned airport,
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.
City of Auburn: 2011 CAFR Management’s Discussion and Analysis
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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 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
2010 to 2011 show an increase in total net assets of $33.9 million. Following is a condensed version of the
government-wide statement of net assets with a comparison to 2010:
As of 12/31/11 As of 12/31/10 As of 12/31/11 As of 12/31/10 As of 12/31/11 As of 12/31/10
Current and other assets 101,433,282$ 101,733,088$ 48,333,780$ 55,721,170$ 149,767,062$ 157,454,258$
Capital assets, net of
accumulated depreciation 373,321,713 353,913,056 195,390,894 173,065,995 568,712,607 526,979,051
Total assets 474,754,995 455,646,145 243,724,674 228,787,164 718,479,669 684,433,310
Long-term liabilities 64,046,364 64,383,783 36,574,493 37,949,404 100,620,857 102,333,187
Other liabilities 10,286,466 8,840,830 6,182,683 5,744,311 16,469,149 14,585,141
Total liabilities 74,332,830 73,224,613 42,757,176 43,693,715 117,090,006 116,918,328
Net assets
Invested in capital assets,
net of related debt 340,941,112 320,506,701 166,289,542 152,343,987 507,230,654 472,850,688
Restricted for:
Capital Projects 11,619,999 12,758,682 - - 11,619,999 12,758,682
Nonexpendable Permanent Endowment 1,449,220 1,271,673 1,449,220 1,271,673
Debt Service 54,717 22,524 3,742,596 3,696,499 3,797,313 3,719,023
Tourist Promotion 93,412 97,852 - - 93,412 97,852
Drug Investigation & Enforce 948,619 941,620 - - 948,619 941,620
Comm Dev Block Grant 43,397 43,299 - - 43,397 43,299
Central Business Distr Dev 21,599 44,817 - - 21,599 44,817
Rate Stabilization - - 411,386 410,629 411,386 410,629
Unrestricted 45,250,090 46,734,364 30,523,974 28,642,334 75,774,064 75,376,698
Total net assets 400,422,165$ 382,421,532 200,967,498$ 185,093,449$ 601,389,663$ 567,514,981$
Governmental Activities Business-type Activities Total
STATEMENT OF NET ASSETS
Comparative Analysis of 2010 and 2011
The largest component of the City’s net assets, $507.2 million, or 84.5%, 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.
City of Auburn: 2011 CAFR Management’s Discussion and Analysis
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The largest component of unrestricted net assets, $45.2 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, $30.5 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, and cemetery). Examples of utility activities include maintenance of water/sewer mains, pump
and lift stations, storm drain flushing, water meter reading, and garbage collection. Activities related to the
other City-owned ventures include maintenance of hangars and runways at the airport, and grooming and
landscaping at the golf course and cemetery.
Restricted governmental fund net assets are $14.2 million and are restricted for purposes such as capital
project construction, debt service, drug investigation and enforcement, and endowment. Total net assets
invested in capital assets, net of related debt increased $34.4 million.
Changes in Net Assets
The change in net assets represents the increase or decrease in City net assets resulting from its various
activities.
Following is a condensed version of the City’s changes in net assets. The table shows the revenues,
expenses and related changes in net assets for both governmental-type and business-type activities:
2011 2010 2011 2010 2011 2010
Revenues:
Program revenues
Charges for services 9,508,793$ 7,849,758$ 45,045,488$ 43,461,742$ 54,554,281$ 51,311,500$
Operating grants and contributions 1,724,711 3,022,835 116,735 70,841 1,841,446 3,093,675
Capital grants and contributions 19,730,140 10,702,132 15,981,735 7,391,111 35,711,875 18,093,244
General revenues -
Property taxes 15,204,611 14,766,470 - - 15,204,611 14,766,470
Sales taxes 16,213,244 15,657,081 - - 16,213,244 15,657,081
Interfund utility taxes 2,948,297 2,788,083 - - 2,948,297 2,788,083
Admission & utility taxes 9,049,689 8,886,964 - - 9,049,689 8,886,964
Excise taxes 1,859,738 1,389,030 - - 1,859,738 1,389,030
Other taxes 4,644,909 4,622,138 - - 4,644,909 4,622,138
Investment earnings 224,593 379,316 101,694 158,211 326,287 537,527
Miscellaneous revenue 775,969 214,190 2,584,004 1,588,068 3,359,973 1,802,257
Total revenues 81,884,694 70,277,997 63,829,656 52,669,972 145,714,350 122,947,969
Expenses:
General government 8,581,829 7,934,948 - - 8,581,829 7,934,948
Public safety 27,320,805 25,890,627 - - 27,320,805 25,890,627
Transportation 12,123,615 11,989,752 - - 12,123,615 11,989,752
Physical environment 2,327,911 2,498,539 - - 2,327,911 2,498,539
Culture and recreation 7,606,584 7,307,270 - - 7,606,584 7,307,270
Economic environment 3,135,984 2,499,631 - - 3,135,984 2,499,631
Health and human services 619,172 578,247 - - 619,172 578,247
Interest on long-term debt 1,685,055 1,809,322 - - 1,685,055 1,809,322
Water - - 8,961,736 10,042,879 8,961,736 10,042,879
Sanitary sewer - - 18,852,402 17,794,958 18,852,402 17,794,958
Storm drainage - - 6,752,021 6,994,381 6,752,021 6,994,381
Solid waste - - 9,957,943 9,894,429 9,957,943 9,894,429
Golf course - - 1,903,836 1,844,108 1,903,836 1,844,108
Other business-type activities - - 2,010,776 1,781,204 2,010,776 1,781,204
Total expenses 63,400,955 60,508,335 48,438,714 48,351,960 111,839,669 108,860,294
Increase in net assets before transfers 18,483,739 9,769,662 15,390,942 4,318,013 33,874,681 14,087,674
Transfers (483,107) 1,463,444 483,107 (1,463,444) - -
Change in net assets 18,000,632 11,233,105 15,874,049 2,854,569 33,874,681 14,087,674
Net assets-beginning of period 382,421,533 371,188,427 185,093,449 182,238,880 567,514,982 553,427,307
Net assets-end of period 400,422,165$ 382,421,532$ 200,967,498$ 185,093,449$ 601,389,663$ 567,514,981$
Governmental Activities Business-type Activities Total
CHANGES IN NET ASSETS
Comparative Analysis of 2010 and 2011
City of Auburn: 2011 CAFR Management’s Discussion and Analysis
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Governmental activities contributed $18 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 long-term assets and are depreciated over
their useful life.
General tax revenues increased by 3.8% to $49.9 million between 2010 and 2011, compared to an
increase of 1.5% between 2009 and 2010:
Property tax revenue rose $438,000, or 3%.
Sales tax collections increased $556,000, or 3.6%, reflecting gradual improvement in the
economy.
Utility and admission tax revenue increased by $323,000 or 2.8%.
Excise tax revenue increased by $471,000, or 33.9%. The increase in excise taxes is due primarily
to real estate excise taxes (REET) which increased as a result of a rise in real estate sales.
Investment earnings fell by $155,000 in governmental activities and $56,000 in business-type activities for
a government-wide decline of $211,000 or 39.2%. These declines reflect the continued low interest rates.
Government-wide Miscellaneous revenue increased $1.5 million, and was attributable to a gain on sale of
assets, receipt of Storm related grants and a settlement.
Government-wide expenses increased by approximately $2.9 million or 4.8% and were attributable to the
“A” street project, “M” street grade separation project, SCORE jail start up and incarceration costs and
increased economic development activities.
The following first chart 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.
Revenues by Source – Government Activities
Charges for
Services12%
Capital Grants & Contributions2%
Operating Grants & Contributions24%
Property Taxes
18%
Sales Taxes20%
Interfund Utility
Taxes4%
Utility & AdmissionTaxes11%
Other Taxes8%
Other Revenue1%
City of Auburn: 2011 CAFR Management’s Discussion and Analysis
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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
Program Revenues
Expenses
Business-type net assets totaled $200.9 million, an increase of 8.6%. Key components of this increase
include:
Business-type revenues increased $11.2 million due primarily to an increase in utility capital
contributions.
Income (loss) before capital contributions and transfers amounted to:
Water fund: $ 945,056
Sanitary sewer fund: (1,634,310)
Storm fund: 718,836
Solid waste fund: (163,129)
Golf course: (514,174)
Non-major funds: (256,531)
$ (904,252)
Net transfers-in totaled $483,107.
City of Auburn: 2011 CAFR Management’s Discussion and Analysis
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The following chart shows the relative net asset balances for each business-type fund:
Business Type Net Assets – By Fund
Water
31.4%
Sanitary Sewer
36.5%
Storm Drainage
23.8%
Solid Waste
0.4%
Airport
4.9%
Cemetery0.4%Golf Course
2.6%
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
$0
$10,000,000
$20,000,000
$30,000,000
$40,000,000
$50,000,000
$60,000,000
$70,000,000
$80,000,000
Water Sanitary Sewer Storm Drainage Solid Waste
Spendable Net Assets
Total Net Assets
City of Auburn: 2011 CAFR Management’s Discussion and Analysis
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Comparison of Total Net Assets to Spendable Net Assets
Other Enterprise Funds
($100,000)
$900,000
$1,900,000
$2,900,000
$3,900,000
$4,900,000
$5,900,000
$6,900,000
$7,900,000
$8,900,000
$9,900,000
Airport Cemetery
Golf course
Spendable Net Assets
Total Net Assets
The following first chart 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
$19,500,000
Water Sanitary Sewer Storm Drainage Solid
Waste Golf
Course Minor
Business-Type
Activities
Revenues
Expenses
City of Auburn: 2011 CAFR Management’s Discussion and Analysis
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Business Type Activity Revenues
By Source
Charges forServices69.2%
CapitalContributions25.0%
InvestmentEarnings0.2%
Business-type
MiscellaneousIncome
5.6%
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, 2011, the City’s governmental funds had combined fund balances of $41.8 million, a
decrease of $3.4 million or 7.6% over the previous year. This decrease is primarily due to a decrease in
fund balance from the spending 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 2010 and 2011.
Changes in Fund Balance - By Fund
Fund 2011 2010 Difference
General fund 21,275,495 21,114,386 161,109
Arterial street fund 1,783,698 1,767,344 16,354
Capital improvement fund 6,164,487 7,124,925 (960,438)
Cumulative reserve fund 0 0 0
Mitigation fund 3,838,152 4,336,836 (498,684)
Cemetery endowment fund 1,556,570 1,537,107 19,463
All other government funds 7,147,197 9,303,373 (2,156,176)
Total 41,765,599 45,183,971 (3,418,372)
Of the government funds’ total fund balances, $14.2 million is unassigned. Nonspendable, restricted,
committed and assigned fund balances total $27.6 million. Of this $27.6 million, $10.6 million is
earmarked for capital projects, $8.2 million is in special revenue funds that are earmarked for specific
purposes and $1.5 million is for endowment.
City of Auburn: 2011 CAFR Management’s Discussion and Analysis
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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 2011, the general fund had a fund balance of $21.3 million, $7.1 million of which is assigned and
$14.2 million is unassigned.
Other funds that had significant fund balances include:
$6.2 million in the capital improvement projects fund; used for various governmental capital asset
projects.
$3.8 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.
$7.1 million in all other government funds; used primarily for local street improvements and local
revitalization funding.
The following chart shows the relative fund balances for governmental funds:
Governmental Funds – Fund Balances
General Fund51%
Arterial
Street Fund4%
CapitalImprovement Fund
15%
Mitigation
Fund9%
CemeteryEndowmentFund
4%
All OtherGovernmental
Funds17%
The increase in the general fund balance of $161,000 is primarily due to insurance recoveries of $154,000.
In addition, property taxes increased $438,000 or 3% and sales taxes increased $556,000 or 3.6%
reflecting a general but very gradual improvement in the regional economy. Capital grants and
contributions increased $9 million and were attributable to receipt of federal grants to support construction
of the City Hall Plaza and Promenade and “M” Street improvements.
City of Auburn: 2011 CAFR Management’s Discussion and Analysis
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The general fund revenue decrease of $910,143 came from the following sources:
2011 General Fund Revenue Increases / (Decreases) – By Source
PropertyTaxes($102,917)
Sales Taxes$421,639
InterfundUtility Taxes$137,326
Utility &AdmissionTaxes($56,302)
Licenses& Permits$457,600
Charges for Services($220,040)
Fines & Forfeitures($532,085)
Inter-governmental
($793,460)
Miscellaneous($221,904)
($1,000,000)
($800,000)
($600,000)
($400,000)
($200,000)
$0
$200,000
$400,000
$600,000
$800,000
The ending fund balance decrease of $960,000 in the capital improvement projects fund is largely due to
the costs associated with the construction of the Activity Center project and the “M” street grade
separation project.
Other significant changes in fund balance include:
The mitigation fund decreased, primarily due to transfers out of $1.4 million related to the M
street grade separation project.
The municipal park construction fund and local revitalization fund decreased by a total of $2.8
million largely due to the costs associated with the construction of the City Hall Plaza project and
the South Division Street Promenade project.
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 two single-year budgets at the end of each even-numbered year
and then making adjustments as necessary via budget amendments throughout the next two years. Major
amendments to the 2011 budget included:
City of Auburn: 2011 CAFR Management’s Discussion and Analysis
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Budgeted General Fund expenditures increased $53.9 million to $54.9 million, reflecting carry
forward of SCORE jail startup project expenditures that were not completed as of the end of 2010
and the authorization of several new positions within Human Resources, Council, Parks and
Finance departments.
Reasons for the variances in the general fund between the final budget and actual results include:
Actual General Fund revenues totaled $50.1 million and exceeded budget by $1.6 million.
Significant areas of variance include licenses and permits which exceeded budget by $640,000
reflecting increased activity from building and mechanical inspection permits; utility tax revenues
exceeded budget by $328,000 reflecting a one-time utility back billing correction and property
taxes exceeded budget by $545,000 reflecting stronger collections than anticipated.
Actual General Fund expenditures totaled $50.1 million and were under-budget by $4.7 million.
While all departments experienced savings due to continued vigilance in monitoring city-wide
expenditures, significant areas of under-expenditure occurred within the Security of Person and
Property, reflecting staff vacancies within the Police Department and within General Government
reflecting savings within the non-departmental program.
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, 2011 totaled $568.7 million (net of accumulated depreciation), an increase of $41.7 million from 2010.
This investment in capital assets includes land, buildings, improvements, machinery and equipment,
construction in progress, utility transmission/distribution systems, roads, bridges, and other infrastructure.
Major capital asset changes during the year include:
Developer contributions resulted in an increase of $14.7 million in utility infrastructure assets and
$9.4 million in governmental infrastructure assets.
$12.9 million was spent by proprietary funds on construction projects during the year.
$21.5 million was spent by governmental funds on construction projects during the year. Some of
the larger projects in the governmental funds include:
$5.4 million on Division Street Promenade and City Hall Plaza
$3.6 million on A Street NW Corridor – Phase 1
$2.4 million on Auburn Activity Center
$2.4 million on M St SE Grade Separation
$2.1 million on Local Street Improvements
$1.9 million on West Valley Highway Improvements
$1.2 million on Arterial & Collector Preservation
City of Auburn: 2011 CAFR Management’s Discussion and Analysis
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A summary of the City’s net assets follows:
Summary of Capital Assets (net of depreciation)
As of 12/31/11 As of 12/31/10 As of 12/31/11 As of 12/31/10 As of 12/31/11 As of 12/31/10
Land 109,603,713$ 108,083,252$ 14,505,063$ 14,505,063$ 124,108,776$ 122,588,315$
Building 47,569,241 45,418,589 6,733,673 7,116,567 54,302,914 52,535,156
Site improvements 5,543,338 4,598,500 158,374,226 145,763,863 163,917,564 150,362,363
Equipment 6,605,895 6,763,180 456,604 403,964 7,062,499 7,167,144
Intangibles 805,556 864,598 - - 805,556 864,598
Infrastructure 181,677,452 174,203,901 - - 181,677,452 174,203,901
Construction in progress 21,516,518 13,981,035 15,321,328 5,276,536 36,837,846 19,257,571
373,321,713$ 353,913,055$ 195,390,894$ 173,065,993$ 568,712,607$ 526,979,048$
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 $86.4 million. Of this
amount, $27.6 million is due to other governments, $35.9 million is general obligation bonds, and $22.9
million is revenue bonds for the water, sewer and storm utilities. The City currently maintains a rating of
Aa3 with Moody’s and a rating of AA with Standard & Poor’s for its general obligation debt.
The following schedule summarizes the City’s bonded debt:
Summary of Bonded Debt
Governmental
Activities
Business-type
Activities Total
General obligation bonds 30,490,000$ 5,360,000$ 35,850,000$
Special assessment bonds - - -
Revenue bonds - 22,930,000 22,930,000
Due to other governments 27,580,850$ - 27,580,850
58,070,850$ 28,290,000$ 86,360,850$
Below is a summary of additional, non-bonded long-term debt of the City:
Other Long-Term Debt
Public Works Trust Fund loans 9,491,810$
Employee leave benefits 2,697,105
Other Post Employment Benefits 3,096,167
15,285,082$
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:
City of Auburn: 2011 CAFR Management’s Discussion and Analysis
30
Summary of Legal Debt Limit and Capacity
With a Vote Legal Limitation Auburn Capacity
General 179,996,328$ 114,579,017$
Open spaces/parks 179,996,328 179,996,328
Utilities 179,996,328 179,996,328
Totals 539,988,985$ 474,571,674$
Without a Vote
General 107,997,797$ 42,580,486$
Totals 107,997,797$ 42,580,486$
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 the pace of the regional economic recovery
remains very gradual. While real estate activity has increased, consumer concerns over persistently high
unemployment continue to cast a long shadow over the broader pace of the economy. In the longer-
term, the economic outlook for the City remains positive. The City has made significant investments in the
community, including completion of major redevelopment of the City Hall Plaza, Promenade, and
opening of the Activity Center. City retail activity is improving, paralleling the trend seen regionally and
nationally. However, as discussed above, this improvement has been very gradual.
Recent significant development in the City includes:
Redevelopment of several blocks (4+) in downtown near the Transit Station valued at $240
million. This area, commonly referred to as the Promenade, was selected by the State 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 grant.
Issuance of 38 commercial and 229 residential building permits with a total construction valuation
of $54.5 million. The number of commercial and residential building permits increased over the
same period, reflecting historically low interest rates and increased building activity. As the
economy strengthens, the numbers of commercial and residential building permits are expected to
increase.
Construction of the “M” Street Grade Separation project. This major project will provide for
grade separation of M Street and the railroad crossing, allowing for improved traffic flow and
vehicular and pedestrian safety.
Other significant improvements include upgrading the existing utility Supervisory Control and Data
Acquisition (SCADA) system, also known as Telemetry. This upgrade will improve control of
water, sewer and storm water utility facilities. Other utility improvements include various water
and sewer pump station replacements.
City of Auburn: 2011 CAFR Management’s Discussion and Analysis
31
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: 2011 CAFR Management’s Discussion and Analysis
32
City of Auburn: 2011 CAFR Basic Financial Statements
33
GOVERNMENT-WIDE FINANCIAL STATEMENTS
The City presents two government-wide financial statements.
The Statement of Net Assets
This statement provides information all on city assets and liabilities, with the difference
between the two reported as net assets.
The Statement of Activities
This statement is focused on both the gross and net cost of various functions, including both
governmental and business-type activities, which are supported by the City’s general tax and
other revenues.
City of Auburn: 2011 CAFR Basic Financial Statements
34
City of Auburn: 2011 CAFR Basic Financial Statements
35
Governmental Business-Type
Activities Activities Total
ASSETS:
Cash and Cash Equivalents (Note 3)36,959,478$ 25,584,935$ 62,544,413$
Investments (Note 3)6,012,980 4,001,502 10,014,482
Receivables
Taxes 427,367 - 427,367
Customer Accounts 507,197 4,944,424 5,451,621
Other Receivables 3,594,895 6,816 3,601,711
Special Assessments 577,602 - 577,602
Due From Other Governmental Units (Note 6)3,429,678 498,949 3,928,627
Internal Balances (91,083) 91,083 -
Materials and Supplies Inventory 118,029 211,945 329,974
Restricted Assets:
Temporarily Restricted:
Cash and Cash Equivalents (Note 3)8,557,006 12,008,627 20,565,633
Due From Other Governmental Units (Note 6)2,339,377 - 2,339,377
Permanently Restricted:
Cash and Cash Equivalents (Note 3)1,449,220 - 1,449,220
Prepaids 1,207,222 - 1,207,222
Long-Term Contracts and Notes 576,644 985,499 1,562,143
Net Pension Asset (Note 10)273,773 - 273,773
Investment in Joint Ventures (Note 15)35,493,897 - 35,493,897
Depreciable Capital Assets (Net of Accumulated Depreciation) (Note 7)242,201,482 165,564,503 407,765,985
Non-Depreciable Capital Assets (Note 7)131,120,231 29,826,391 160,946,622
Total Assets 474,754,995 243,724,674 718,479,669
LIABILITIES:
Accounts Payable 6,663,577 2,886,957 9,550,534
Other Liabilities Payable 410,509 - 410,509
Municipal Court Payable 586,735 - 586,735
Payable From Restricted Assets:
Accrued Interest - 1,358,940 1,358,940
Deposits - 128,543 128,543
Deferred Revenue 1,585,239 887,330 2,472,569
Bonds and Other Debt Payable:
Due Within One Year (Note 9)2,424,645 1,808,243 4,232,888
Due in More Than One Year (Note 9)31,985,108 35,687,163 67,672,271
Due to Other Governmental Units:
Due Within One Year (Note 9)201,000 201,000
Due in More Than One Year (Note 9)27,379,850 27,379,850
Net OPEB Obligation (Note 11)3,096,167 - 3,096,167
Total Liabilities 74,332,830 42,757,176 117,090,006
NET ASSETS:
Invested in Capital Assets, Net of Related Debt 340,941,112 166,289,542 507,230,654
Restricted for:
Capital Projects 11,619,999 - 11,619,999
Nonexpendable Permanent Endowment 1,449,220 - 1,449,220
Debt Service 54,717 3,742,596 3,797,313
Tourist Promotion 93,412 - 93,412
Drug Investigation and Enforcement 948,619 - 948,619
Community Development Block Grant Program 43,397 - 43,397
Central Business District Development 21,599 - 21,599
Rate Stabilization - 411,386 411,386
Unrestricted Net Assets 45,250,090 30,523,974 75,774,064
Total Net Assets 400,422,165$ 200,967,498$ 601,389,663$
The notes to the financial statements are an integral part of this statement.
Primary Government
City of Auburn, Washington
STATEMENT OF NET ASSETS
December 31, 2011
City of Auburn: 2011 CAFR Basic Financial Statements
36
Operating Capital
Charges Grants and Grants and
Expenses for Services Contributions Contributions
FUNCTIONS / PROGRAMS:
Primary Government
Governmental Activities:
General Government 8,581,829$ 1,010,911$ 38,889$ 406,321$
Public Safety 27,320,805 3,867,013 1,350,707 52,148
Transportation 12,123,615 1,042,147 94,981 15,198,550
Physical Environment 2,327,911 103,590 - 2,021,411
Culture and Recreation 7,606,584 1,182,688 220,133 1,392,432
Economic Environment 3,135,984 2,294,916 20,001 659,278
Health and Human Resources 619,172 7,528 - -
Interest on Long-Term Debt 1,685,055 - - -
63,400,955 9,508,793 1,724,711 19,730,140
Business-Type Activities
Water 8,961,736 9,008,830 - 2,458,649
Sanitary Sewer 18,852,402 16,667,149 - 7,329,252
Storm Drainage 6,752,021 6,938,375 - 6,193,834
Solid Waste 9,957,943 9,654,719 116,735 -
Golf Course 1,903,836 1,388,842 - -
Nonmajor Business-Type Activities 2,010,776 1,387,573 - -
48,438,714 45,045,488 116,735 15,981,735
Total Primary Government 111,839,669$ 54,554,281$ 1,841,446$ 35,711,875$
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.
Program Revenues
City of Auburn, Washington
STATEMENT OF ACTIVITIES
For the Year Ended December 31, 2011
Page 1 of 2
City of Auburn: 2011 CAFR Basic Financial Statements
37
Governmental Business-Type
Activities Activity Total
(7,125,708)$ -$ (7,125,708)$
(22,050,937) - (22,050,937)
4,212,063 - 4,212,063
(202,910) - (202,910)
(4,811,331) - (4,811,331)
(161,789) - (161,789)
(611,644) - (611,644)
(1,685,055) - (1,685,055)
(32,437,311) - (32,437,311)
- 2,505,743 2,505,743
- 5,143,999 5,143,999
- 6,380,188 6,380,188
- (186,489) (186,489)
- (514,994) (514,994)
- (623,203) (623,203)
- 12,705,244 12,705,244
(32,437,311)$ 12,705,244$ (19,732,067)$
15,204,611$ -$ 15,204,611$
16,213,244 - 16,213,244
2,948,297 - 2,948,297
9,049,689 - 9,049,689
1,859,738 - 1,859,738
4,644,909 - 4,644,909
224,593 101,694 326,287
208,876 2,584,004 2,792,880
522,264 - 522,264
44,829 - 44,829
(483,107) 483,107 -
50,437,943 3,168,805 53,606,748
18,000,632 15,874,049 33,874,681
382,421,533 185,093,449 567,514,982
400,422,165$ 200,967,498$ 601,389,663$
Changes in Net Assets
Net (Expense) Revenue and
Page 2 of 2
City of Auburn: 2011 CAFR Basic Financial Statements
38
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 ac-
counting 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 partially supported by the State of Washington’s motor vehicle fuel 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.
City of Auburn: 2011 CAFR Basic Financial Statements
39
Other Total
General Arterial Capital Governmental Governmental
Fund Street Improvement Funds Funds
ASSETS:
Cash and Cash Equivalents 17,756,328$ 582,637$ 6,165,058$ 11,165,332$ 35,669,355$
Investments (Note 3)4,006,860 - - - 4,006,860
Receivables:
Taxes 427,367 - - - 427,367
Customer Accounts 64,653 111,883 - 306,353 482,889
Other Receivables 3,248,697 - - 342,742 3,591,439
Special Assessments - - - 577,602 577,602
Interfund Receivable (Note 5)350,000 - - - 350,000
Long-Term Notes and Contracts - - 576,644 - 576,644
Due From Other Governmental Units (Note 6)1,487,680 2,215,759 26,947 1,906,646 5,637,032
Prepaids - - - 4,320 4,320
Total Assets 27,341,585$ 2,910,279$ 6,768,649$ 14,302,995$ 51,323,508$
LIABILITIES AND FUND BALANCES:
Liabilities:
Current Payables 3,897,510$ 698,188$ 27,518$ 1,180,874$ 5,804,090$
Customer Deposits 249,212 - - - 249,212
Municipal Court Payable 586,735 - - - 586,735
Other Liabilities Payable 544 - - - 544
Deferred Revenue 1,332,089 428,393 576,644 580,202 2,917,328
Total Liabilities 6,066,090 1,126,581 604,162 1,761,076 9,557,909
Fund Balances: (Note 1)
Nonspendable 1,453,540 1,453,540
Restricted - 1,783,698 3,886,283 7,111,762 12,781,743
Committed - - - 3,134,449 3,134,449
Assigned 7,082,130 - 2,278,204 842,168 10,202,502
Unassigned 14,193,365 - - - 14,193,365
Total Fund Balances:21,275,495 1,783,698 6,164,487 12,541,919 41,765,599
Total Liabilities and Fund Balances 27,341,585$ 2,910,279$ 6,768,649$ 14,302,995$ 51,323,508$
Total governmental fund balances as reported on this statement 41,765,599$
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.367,616,387
Other long-term assets are not available to pay for current-period expenditures and therefore are deferred in the funds.
Prepaids 1,202,902
Interest receivable on investments 1,817
Unearned revenue beyond the city's 30-day measurable and available period 1,332,089
Deferred charges for bond issue costs 42,118
2,578,926
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 17,800,118
activities in the statement of net assets.
Certain Joint Ventures activities do not use or provide current financial resources but increase net assets.7,913,047
Some liabilities are not due and payable in the current period and therefore are not reported in the funds.
Bonds and loans payable (32,422,719)
Interest payable (157,528)
Net pension asset 273,773
Net other postemployment obligations (3,096,167)
Compensated absences payable (1,849,271)
(37,251,912)
Net assets of government activities as reported on the statement of net assets 400,422,165$
The notes to the financial statements are an integral part of this statement.
City of Auburn, Washington
BALANCE SHEET
GOVERNMENTAL FUNDS
December 31, 2011
City of Auburn: 2011 CAFR Basic Financial Statements
40
Other Total
General Arterial Capital Governmental Governmental
Fund Street Improvement Funds Funds
REVENUES:
Taxes:
Property 12,566,894$ -$ -$ 2,116,435$ 14,683,329$
Retail Sales & Use 15,931,115 - - 282,129 16,213,244
Interfund Utility 2,527,112 - - 421,185 2,948,297
Utility 7,336,455 - - 1,713,234 9,049,689
Excise 307,517 - 1,487,163 65,058 1,859,738
Other - - - 58,678 58,678
Licenses and Permits 1,769,516 - - - 1,769,516
Intergovernmental 5,416,572 7,274,120 - 3,483,457 16,174,149
Charges for Services 1,663,039 - - 1,275,776 2,938,815
Fines and Forfeitures 1,940,326 - - - 1,940,326
Special Assessments - - - 32,972 32,972
Investment Earnings 115,589 1,730 58,622 61,115 237,056
Miscellaneous 537,995 212,883 32,866 1,538,836 2,322,580
Total Revenues 50,112,130 7,488,733 1,578,651 11,048,875 70,228,389
EXPENDITURES:
Current:
General Government 8,307,037 - - 3,000 8,310,037
Security of Persons and Property 26,688,265 - - 711,141 27,399,406
Physical Environment 2,290,328 - - - 2,290,328
Transportation 2,754,212 9,788,116 - 3,516,828 16,059,156
Economic Environment 2,309,476 - - 829,114 3,138,590
Health and Human Services 616,717 - - - 616,717
Culture and Recreation 6,917,998 - - 625 6,918,623
Debt Service:
Principal 210,263 80,383 - 917,866 1,208,512
Interest and Other Costs 32,591 7,234 - 1,721,509 1,761,334
Capital Outlay - - 174,890 8,423,054 8,597,944
Total Expenditures 50,126,887 9,875,733 174,890 16,123,137 76,300,647
Excess (Deficiency) of Revenues
Over (Under) Expenditures (14,757) (2,387,000) 1,403,761 (5,074,262) (6,072,258)
OTHER FINANCING SOURCES (USES):
Sales of Capital Assets 1,379 - 1,329,713 - 1,331,092
Insurance Recoveries 154,200 - - - 154,200
Transfers In (Note 5)1,078,439 2,403,354 378 3,928,755 7,410,926
Transfers Out (Note 5)(1,058,152) - (3,694,290) (1,489,891) (6,242,333)
Total Other Financing Sources and Uses 175,866 2,403,354 (2,364,199) 2,438,864 2,653,885
Net Change in Fund Balances 161,109 16,354 (960,438) (2,635,398) (3,418,373)
Fund Balances - Beginning 21,114,386 1,767,344 7,124,925 15,177,317 45,183,972
Fund Balances - Ending 21,275,495$ 1,783,698$ 6,164,487$ 12,541,919$ 41,765,599$
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, 2011
City of Auburn: 2011 CAFR Basic Financial Statements
41
Net change in fund balances per the Statement of Revenues, Expenditures and Changes in Fund Balance (3,418,373)$
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 ($21,733,898)
exceeded depreciation ($10,651,227) in the current period.11,082,671
Certain Capital and Joint Venture activities do not use or provide current financial resources
but increase net assets.642,847
Governmental funds report proceeds from sales of assets as other financing sources
while the Statement of Activities reports only the gain or loss on sale of capital assets (802,512)
Revenues in the Statement of Activities that do not provide current financial resources
are not reported as revenues in the funds:
Deferred revenue 1,332,089
Other 54,676
Amortization of bond premium 37,868
Investment interest receivable (9,382)
1,415,251
Developer contributions and annexation of infrastructure assets are reported as revenue in the statement
of activities, but do not provide current financial resources and are not reported as fund revenue.9,419,065
Repayment of the principal of long-term debt consumes the current financial resources of
governmental funds but has no effect on the net assets.1,175,646
Internal service funds are used by management to charge the costs of certain activities,
such as insurance and fleet maintenance, to individual funds. The net revenue (expense)
of certain internal service funds is reported with governmental activities.(631,667)
Some expenses reported in the Statement of Activities do not require the use of current
financial resources and therefore are not reported as expenditures in governmental funds.
Amortization of debt issue costs (15,969)
Amortization of prepaid expenses (109,355)
Change in accrued interest payable 7,936
Change in net pension obligation 273,773
Change in net other postemployment benefits (1,027,327)
Change in compensated absences payable (11,354)
(882,296)
Change in net assets on the Statement of Activities 18,000,632$
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, 2011
City of Auburn: 2011 CAFR Basic Financial Statements
42
Variance with
Final Final Budget
Original Adopted Actual Positive
(GAAP Basis)(GAAP Basis)Results (Negative)
REVENUES:
Taxes:
Property 12,022,340$ 12,022,340$ 12,566,894$ 544,554$
Retail Sales & Use 17,089,200 17,089,200 15,931,115 (1,158,085)
Interfund Utility 2,522,800 2,522,800 2,527,112 4,312
Utility 7,008,110 7,008,110 7,336,455 328,345
Excise 721,500 721,500 307,517 (413,983)
Licenses and Permits 1,129,000 1,129,000 1,769,516 640,516
Intergovernmental 3,841,685 3,541,135 5,416,572 1,875,437
Charges for Services 1,804,100 1,810,100 1,663,039 (147,061)
Fines and Forfeitures 2,208,500 2,208,500 1,940,326 (268,174)
Investment Earnings 110,000 110,000 86,851 (23,149)
Miscellaneous 348,200 356,880 537,995 181,115
Total Revenues 48,805,435 48,519,565 50,083,392 1,563,827
EXPENDITURES:
Current:
General Government 9,261,800 9,349,970 8,307,037 1,042,933
Security of Persons and Property 28,455,330 29,218,520 26,688,265 2,530,255
Physical Environment 2,415,200 2,400,460 2,290,328 110,132
Transportation 3,223,130 3,166,460 2,754,212 412,248
Economic Environment 2,244,580 2,357,410 2,309,476 47,934
Health and Human Services 713,410 713,250 616,717 96,533
Culture and Recreation 7,208,370 7,275,460 6,917,998 357,462
Debt Service 392,200 392,200 242,854 149,346
Total Expenditures 53,914,020 54,873,730 50,126,887 4,746,843
Excess (Deficiency) of Revenues
Over (Under) Expenditures (5,108,585) (6,354,165) (43,495) 6,310,670
OTHER FINANCING SOURCES (USES):
Sales of Capital Assets - - 1,379 1,379
Insurance Recoveries 25,000 30,500 154,200 123,700
Transfers In (Note 5)1,033,468 1,078,439 1,078,439 -
Transfers Out (Note 5)(1,225,300) (623,200) (334,807) 288,393
Total Other Financing Sources and Uses (166,832) 485,739 899,211 413,472
Net Change in Fund Balances (5,275,417) (5,868,426) 855,716 6,724,142
Fund Balances - Beginning 11,763,355 15,382,354 15,382,354 -
Fund Balances - Ending 6,487,938$ 9,513,928$ 16,238,070$ 6,724,142$
RECONCILIATION OF PERSPECTIVE DIFFERENCE BETWEEN BUDGETARY INFORMATION AND
GENERALLY ACCEPTED ACCOUNTING PRINCIPLES (GAAP):
The Cumulative Reserve Fund is combined with
the General Fund for purposes of GASB Statement 54 5,037,425
Fund Balance - Ending (GAAP)21,275,495$
The notes to the financial statements are an integral part of this statement.
Budget Amounts
For the Year Ended December 31, 2011
City of Auburn, Washington
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
GENERAL FUND
City of Auburn: 2011 CAFR Basic Financial Statements
43
Variance with
Final Final Budget
Original Adopted Actual Positive
(GAAP Basis)(GAAP Basis)Results (Negative)
REVENUES:
Intergovernmental 10,117,000$ 11,329,100$ 7,274,120$ (4,054,980)$
Investment Earnings 4,000 4,000 1,730 (2,270)
Miscellaneous - - 212,883 212,883
Total Revenues 10,121,000 11,333,100 7,488,733 (3,844,367)
EXPENDITURES:
Transportation 13,240,600 16,467,430 9,788,116 6,679,314
Total Expenditures 13,328,300 16,555,130 9,875,733 6,679,397
Excess (Deficiency) of Revenues
Over (Under Expenditures (3,207,300) (5,222,030) (2,387,000) 2,835,030
OTHER FINANCING SOURCES (USES):
Transfers In (Note 5)3,089,200 4,297,630 2,403,354 (1,894,276)
Total Other Financing Sources and Uses 3,089,200 4,297,630 2,403,354 (1,894,276)
Net Change in Fund Balances (118,100) (924,400) 16,354 940,754
Fund Balances - Beginning 383,118 1,767,344 1,767,344 -
Fund Balances - Ending 265,018$ 842,944$ 1,783,698$ 940,754$
The notes to the financial statements are an integral part of this statement.
Budget Amounts
For the Year Ended December 31, 2011
City of Auburn, Washington
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
ARTERIAL STREET FUND
City of Auburn: 2011 CAFR Basic Financial Statements
44
City of Auburn: 2011 CAFR Basic Financial Statements
45
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.
City of Auburn: 2011 CAFR Basic Financial Statements
46
GovernmentalNon-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 9,105,059$ 7,855,899$ 6,693,599$ 264,500$ 469,378$ 1,196,500$ 25,584,935$ 11,296,349$
Investments 2,004,940 1,996,562 - - - - 4,001,502 2,006,120
Restricted Cash:
Bond Payments 974,099 307,299 357,864 - - - 1,639,262 -
Customer Deposits 20,633 44,053 - - - 63,856 128,542 -
Other 6,280,141 1,831,850 2,128,832 - - 10,240,823 -
Customer Accounts 895,871 1,971,772 855,486 1,201,924 19,371 - 4,944,424 24,308
Other Receivables 6,716 100 - - - - 6,816 1,639
Due From Other Governmental Units - 15,721 444,779 38,449 - - 498,949 132,023
Inventories 187,286 7,147 7,299 - - 10,213 211,945 118,029
Total Current Assets 19,474,745 14,030,403 10,487,859 1,504,873 488,749 1,270,569 47,257,198 13,578,468
Noncurrent Assets
Long-Term Contracts and Notes - 983,400 - - - 2,099 985,499 -
Capital Assets:
Land 897,971 1,695,023 5,686,254 - 2,229,636 3,996,179 14,505,063 -
Buildings and Equipment 2,436,120 1,171,259 201,254 496,617 6,620,690 3,603,304 14,529,244 16,251,477
Improvements Other Than Buildings 90,393,469 80,984,120 50,815,888 - 3,023,053 9,684,043 234,900,573 46,591
Construction in Progress 7,331,713 4,570,300 3,403,168 - - 16,147 15,321,328 -
Less: Accumulated Depreciation (38,448,453) (19,566,169) (16,335,857) (336,653) (2,913,861) (6,264,321) (83,865,314) (10,592,742)
Total Capital Assets (Net of A/D)62,610,820 68,854,533 43,770,707 159,964 8,959,518 11,035,352 195,390,894 5,705,326
Total Noncurrent Assets 62,610,820 69,837,933 43,770,707 159,964 8,959,518 11,037,451 196,376,393 5,705,326
Total Assets 82,085,565 83,868,336 54,258,566 1,664,837 9,448,267 12,308,020 243,633,591 19,283,794
LIABILITIES:
Current Liabilities:
Current Payables 852,393 501,844 522,001 872,610 70,429 67,680 2,886,957 859,487
Customer Deposits - - - - - - - 3,225
Interfund Payables (Note 5)- - - - 350,000 - 350,000 -
Loans Payable - Current 435,568 288,262 - - - - 723,830 -
Employee Leave Benefits - Current 146,344 90,346 136,131 21,697 42,142 22,753 459,413 123,721
Revenue Bonds Payable - Current 225,700 - 79,300 - - - 305,000 -
General Obligation Bonds Payable - Current - - - - 215,000 105,000 320,000 -
Payable From Restricted Assets:
Accrued Interest 762,807 317,569 278,564 - - - 1,358,940 -
Deposits 20,633 44,054 - - - 63,856 128,543 -
Total Current Liabilities 2,443,445 1,242,075 1,015,996 894,307 677,571 259,289 6,532,683 986,433
Noncurrent Liabilities
Deferred Revenue 42,200 162,203 597,204 - 83,624 2,099 887,330 -
Employee Leave Benefits 66,429 41,011 61,793 9,849 19,130 10,328 208,540 56,160
Loans Payable 3,581,494 3,819,979 - - - - 7,401,473 -
Revenue Bonds Payable 12,923,302 5,329,062 4,811,369 - - - 23,063,733 -
General Obligation Bonds Payable - - - - 3,522,980 1,490,437 5,013,417 -
Total Noncurrent Liabilities 16,613,425 9,352,255 5,470,366 9,849 3,625,734 1,502,864 36,574,493 56,160
Total Liabilities 19,056,870 10,594,330 6,486,362 904,156 4,303,305 1,762,153 43,107,176 1,042,593
NET ASSETS:
Invested in Capital Assets, Net of Related Debt 50,498,331 60,824,782 40,145,011 159,964 5,221,539 9,439,915 166,289,542 5,705,326
Restricted for:
Debt Service 2,200,664 731,596 810,336 - - - 3,742,596 -
Capital Projects - - - - - - - -
Rate Stabilization - - 411,386 - - - 411,386 -
Construction - - - - - - - -
Unrestricted:10,329,700 11,717,628 6,405,471 600,717 (76,577) 1,105,952 30,082,891 12,535,875
Total Net Assets 63,028,695$ 73,274,006$ 47,772,204$ 760,681$ 5,144,962$ 10,545,867$ 200,526,415$ 18,241,201$
Adjustment to reflect the consolidation
of internal service funds related to
enterprise funds 441,083 Net assets of business-type activities 200,967,498$
The notes to the financial statements are an integral part of this statement.
City of Auburn, WashingtonSTATEMENT OF NET ASSETSPROPRIETARY FUNDSDecember 31, 2011
City of Auburn: 2011 CAFR Basic Financial Statements
47
Governmental
Non-Major Total Activities
Sanitary Storm Sold Golf Proprietary Proprietary Internal
Water Sewer Drainage Waste Course Funds Funds Service Funds
OPERATING REVENUES:
Charges of Services 9,008,830$ 16,667,149$ 6,938,375$ 9,654,719$ 1,121,811$ 777,866$ 44,168,750$ 10,788,859$
Interest - - - - - 1,420 1,420 -
Other Operating Revenue - - - - 267,031 608,287 875,318 247,899
Total Operating Revenue 9,008,830 16,667,149 6,938,375 9,654,719 1,388,842 1,387,573 45,045,488 11,036,758
OPERATING EXPENSES:Operations & Maintenance 3,017,606 14,177,079 1,923,604 8,449,351 1,100,166 699,403 29,367,209 7,502,383
Administration 2,328,180 1,916,148 2,746,980 774,062 235,531 765,317 8,766,218 1,149,623
Depreciation / Amortization 2,080,667 1,603,210 1,278,402 18,819 321,641 451,077 5,753,816 1,276,636
Other Operating Expenses 1,111,008 1,311,789 646,871 715,711 55,535 10,988 3,851,902 -
Total Operating Expenses 8,537,461 19,008,226 6,595,857 9,957,943 1,712,873 1,926,785 47,739,145 9,928,642
Operating Income (Loss)471,369 (2,341,077) 342,518 (303,224) (324,031) (539,212) (2,693,657) 1,108,116
NON-OPERATING REVENUE (EXPENSE):
Interest Revenue 56,417 20,756 20,865 591 820 2,245 101,694 41,923
Other Non-Operating Revenues 841,545 843,646 511,617 139,504 - 364,427 2,700,739 179,233
Gain on Sale of Capital Assets - - - - - - - (6,316)
Interest Expense (421,883) (156,566) (133,448) - (190,963) (83,991) (986,851) -
Other Non-Operating Expenses (2,392) (1,069) (22,716) - - - (26,177) - Total Non-Operating Revenue (Expense)473,687 706,767 376,318 140,095 (190,143) 282,681 1,789,405 214,840
Income (Loss) Before Contributions & Transfers 945,056 (1,634,310) 718,836 (163,129) (514,174) (256,531) (904,252) 1,322,956
Capital Contribution 2,458,649 7,329,252 6,193,834 - - - 15,981,735 10,537
Transfers In (Note 5)- - - - 448,607 231,300 679,907 - Transfers Out (Note 5)(50,000) (50,000) (96,800) - - - (196,800) (1,651,700)
Change in Net Assets 3,353,705 5,644,942 6,815,870 (163,129) (65,567) (25,231) 15,560,590 (318,207)
Total Net Assets Beginning of Year 59,674,990 67,629,064 40,956,334 923,810 5,210,529 10,571,098 184,965,825 18,559,408
Total Net Assets End of Year 63,028,695$ 73,274,006$ 47,772,204$ 760,681$ 5,144,962$ 10,545,867$ 200,526,415$ 18,241,201$
Change in net assets from this statement 15,560,590 Adjustment to reflect the consolidation of internal service fund
activities related to enterprise funds 313,459
Change in net assets of business-type activities 15,874,049$
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, 2011
City of Auburn: 2011 CAFR Basic Financial Statements
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Page 1 of 2
Government
Non Major Activities
Sanitary Storm Solid Golf Enterprise Internal
Water Sewer Drainage Waste Course Funds Total Service Funds
CASH FLOWS FROM OPERATING ACTIVITIES:
Cash Received from Users 8,990,109$ 16,748,432$ 6,433,820$ 9,459,196$ 1,394,907$ 1,385,926$ 44,412,390$ 11,052,282$
Cash Paid to Suppliers (2,451,985) (14,100,479) (1,966,400) (8,598,307) (509,323) (761,748) (28,388,242) (5,535,660)
Cash Paid for Taxes (1,111,008) (1,311,789) (646,872) (715,711) (55,535) (10,988) (3,851,903) (3,977)
Cash Paid for Inventory 39,092 267 581 - - (2,454) 37,486 15,264
Cash Paid to Employees (2,863,067) (1,944,977) (2,526,053) (581,539) (798,808) (691,633) (9,406,077) (3,145,065)
Other Cash Received (Paid)- - - (244) 8,902 - 8,658 -
Net Cash Provided (Used) by Operating Activities 2,603,141 (608,546) 1,295,076 (436,605) 40,143 (80,897) 2,812,312 2,382,844
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:
Interfund Loan Payable - - - - 290,625 - 290,625 -
Operating Grant Received - 48,175 233,327 132,303 - - 413,805 (48,052)
Other Non-Operating Gain 1,391,396 3,232 6,081 22,769 - 30,235 1,453,713 13,952
Transfers In - - - - 448,607 231,300 679,907 -
Transfers Out (50,000) (50,000) (96,800) - - - (196,800) (1,651,700)
Net Cash Provided (Used) by Noncapital Financing Activities 1,341,396 1,407 142,608 155,072 739,232 261,535 2,641,250 (1,685,800)
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES:
Proceeds from Sale of Equipment - - - - - - - 38,945
Purchase of Capital Assets (6,802,711) (3,009,072) (2,992,155) - - (392,856) (13,196,794) (1,142,213)
Contributed Capital 283,462 1,023,622 462,728 - - - 1,769,812 -
Capital Grants - - 211,441 - - 334,162 545,603 63,234
Proceeds from Other Governments 162,451 117,631 151,376 - - - 431,458 -
Proceeds from Insurance Settlement - 33,887 - - - - 33,887 57,839
Principal Payment on Debt (650,168) (288,262) (75,400) - (205,000) (100,000) (1,318,830) -
Interest Payment on Debt (437,929) (154,482) (134,502) - (191,058) (76,743) (994,714) -
Net Cash Provided (Used) for Capital and Related Financing Activities (7,444,895) (2,276,676) (2,376,512) - (396,058) (235,437) (12,729,578) (982,195)
CASH FLOW FROM INVESTING ACTIVITIES:
Proceeds from Sale of Investments 1,731,607 2,009,920 2,510,325 - - - 6,251,852 -
Purchase of Investments (2,000,000) (2,000,000) - - - - (4,000,000) (2,000,000)
Interest Received 56,417 38,311 25,492 591 820 2,275 123,906 34,164
Net Cash Provided (Used) in Investing Activities (211,976) 48,231 2,535,817 591 820 2,275 2,375,758 (1,965,836)
Net Increase (Decrease) in Cash and Cash Equivalents (3,712,334) (2,835,584) 1,596,989 (280,942) 384,137 (52,524) (4,900,258) (2,250,987)
Cash and Cash Equivalents - Beginning of Year 20,092,266 12,874,685 7,583,306 545,442 85,241 1,312,880 42,493,820 13,547,336
Cash and Cash Equivalents - End of Year 16,379,932$ 10,039,101$ 9,180,295$ 264,500$ 469,378$ 1,260,356$ 37,593,562$ 11,296,349$
CASH AT END OF YEAR CONSISTS OF:
Cash and Cash Equivalents 9,105,059 7,855,899 6,693,599 264,500 469,378 1,196,500 25,584,935 11,296,349 Restricted Cash - Bond Payments 974,099 307,299 357,864 - - - 1,639,262 -
Restricted Cash - Customer Deposits 20,633 44,053 - - - 63,856 128,542 -
Restricted Cash - Other 6,280,141 1,831,850 2,128,832 - - - 10,240,823 -
Total Cash 16,379,932$ 10,039,101$ 9,180,295$ 264,500$ 469,378$ 1,260,356$ 37,593,562$ 11,296,349$
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, 2011
City of Auburn: 2011 CAFR Basic Financial Statements
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Page 2 of 2
Government
Non Major Activities
Sanitary Storm Solid Golf Enterprise Internal
Water Sewer Drainage Waste Course Funds Total Service Funds
RECONCILIATION OF NET OPERATING INCOME TO NEW CASH
PROVIDED BY OPERATING ACTIVITIES
Operating Income (Loss)471,369$ (2,341,077)$ 342,518$ (303,224)$ (324,031)$ (539,212)$ (2,693,657)$ 1,108,116$
ADJUSTMENTS TO RECONCILE OPERATING INCOME TO
NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES:
Depreciation 2,080,667 1,603,210 1,278,402 18,819 321,641 451,077 5,753,816 1,276,636
Asset (Increases) Decreases:Accounts Receivable (7,725) 54,064 (59,776) (195,523) 6,065 3,910 (198,985) 17,324
Miscellaneous A/R Revenue - - (466,601) - - - (466,601) -
Inventory 39,092 267 581 - - (2,454) 37,486 15,264
Liability Increases (Decreases):
Accounts & Vouchers Payable 55,676 23,260 170,762 40,984 21,110 4,147 315,939 (61,070)
Deposits Payable (10,996) 27,219 - - - (5,557) 10,666 (1,800)
Wages & Benefits Payable (6,227) 4,815 17,421 1,457 1,769 1,537 20,772 16,299
Compensated Absences Payable (18,715) 19,696 11,769 882 4,687 5,655 23,974 12,075
Deferred Revenue - - - - 8,902 - 8,902 -
Total Adjustments 2,131,772 1,732,531 952,558 (133,381) 364,174 458,315 5,505,969 1,274,728
Net Cash Provided (Used) by Operating Activities 2,603,141$ (608,546)$ 1,295,076$ (436,605)$ 40,143$ (80,897)$ 2,812,312$ 2,382,844$
SCHEDULE OF NONCASH INVESTING, CAPITAL AND
FINANCING ACTIVITIES
Capital Assets Acquired by Contributed Capital 2,175,187 6,975,630 5,731,106 - - - 14,881,923 10,537
Increase (Decrease) in Fair Value of Investment (4,940) - - - - - (4,940) -
Total Non Cash Investing, Capital and Financing Activities 2,170,247$ 6,975,630$ 5,731,106$ -$ -$ -$ 14,876,983$ 10,537$
The notes to the financial statements are an integral part of this statement.
City of Auburn, Washington
STATEMENT OF CASH FLOWS
For the Fiscal Year Ended December 31, 2011
PROPRIETARY FUNDS
City of Auburn: 2011 CAFR Basic Financial Statements
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City of Auburn: 2011 CAFR Basic Financial Statements
51
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.
City of Auburn: 2011 CAFR Basic Financial Statements
52
Fire Relief
Pension Agency
Trust Fund Fund
ASSETS:
Cash and Cash Equivalents 2,583,916$ 1,448,370$
Investments 89,770 -
Receivables:
Customer Accounts - 26,021
Interest 654 -
Total Assets 2,674,340 1,474,391
LIABILITIES:
Current Payables 7,809 422,275
Due to Other Governmental Units - 1,052,116
Total Liabilities 7,809 1,474,391
NET ASSETS:
Held in Trust for Pension Benefits and Other Purposes 2,666,531$
The notes to the financial statements are an integral part of this statement.
City of Auburn, Washington
STATEMENT OF FIDUCIARY NET ASSETS
FIDUCIARY FUNDS
December 31, 2011
City of Auburn: 2011 CAFR Basic Financial Statements
53
Fire Relief
Pension
Trust Fund
ADDITIONS:
Fire Insurance Premiums - Transferred from General Fund 66,375$
Investment Earnings 11,427
Total Additions 77,802
DEDUCTIONS:
Benefit Payments 168,552
Insurance Expense 7,850
Administrative Expenses 15,050
Total Deductions 191,452
Change in Net Assets (113,650)
Net Assets - Beginning 2,780,181
Net Assets - Ending 2,666,531$
The notes to the financial statements are an integral part of this statement.
City of Auburn, Washington
STATEMENT OF CHANGES IN FIDUCIARY NET ASSETS
FIDUCIARY FUNDS
For the Year Ended December 31, 2011
City of Auburn: 2011 CAFR Basic Financial Statements
54
City of Auburn: 2011 CAFR Notes to the Financial Statements
55
City of Auburn
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2011
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 Balance .................................................................................... 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 and Prepaid Expenses ............................................................................... 62
6. Restricted Assets ......................................................................................................... 62
7. Interfund Transactions ................................................................................................ 63
8. Capital Assets ............................................................................................................. 63
9. Compensated Absences .............................................................................................. 63
10. Deferred Revenues ..................................................................................................... 64
11. Fund Balance Components – Proprietary Funds .......................................................... 64
12. Fund Balance Components – Governmental Funds ..................................................... 64
F. Revenues, Expenditures and Expenses ............................................................................... 66
G. Estimates .......................................................................................................................... 66
Note 2 – Stewardship, Compliance and Accountability .......................................................................... 66
Note 3 – Deposits and Investments ........................................................................................................ 67
Note 4 – Property Taxes ....................................................................................................................... 69
Note 5 – Interfund Activity .................................................................................................................... 71
Note 6 – Due From Other Governmental Units ..................................................................................... 72
Note 7 – Capital Assets and Depreciation .............................................................................................. 73
Note 8 – Capital Lease Obligation ......................................................................................................... 74
Note 9 – Long-Term Debt ..................................................................................................................... 75
Note 10 – Pension Plans ......................................................................................................................... 78
Note 11 – Other Post Employment Benefits ............................................................................................. 90
Note 12 – Association of Washington Cities Employment Benefit Trust .................................................... 92
Note 13 – Construction Commitments .................................................................................................... 93
Note 14 – Cemetery Endowed Care Fund ............................................................................................... 93
Note 15 – Joint Ventures / Related Party ................................................................................................. 94
Note 16 – Jointly Governed Organization / Related Party ....................................................................... 97
Note 17 – Contingencies and Litigation ................................................................................................... 98
Note 18 – Risk Management and Insurance ............................................................................................. 98
Note 19 – Subsequent Event.................................................................................................................... 99
City of Auburn: 2011 CAFR Notes to the Financial Statements
56
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 government-wide financial statements report information on all of the non-fiduciary activities of the
City. For the most part, the effect of interfund activity has been eliminated from these statements. Because
governmental activities are normally supported by taxes and intergovernmental revenue, while business-
type activities are generally supported through user fees and charges, governmental activities are reported
separately from business-type activities on all government-wide financial statements.
City of Auburn: 2011 CAFR Notes to the Financial Statements
57
The Statement of Net Assets reports the assets and liabilities of the primary government. The net asset
section of this statement represents the residual amount of assets and their associated liabilities. The net
asset section is divided into three categories. The first category is Invested in Capital Assets, Net of Related
Debt, which includes all capital assets, net of accumulated depreciation, less any debt outstanding
associated with the assets. Capital assets cannot readily be sold and converted into cash. The second
category is Restricted Net Assets, which includes those assets, net of their related debt, that have a
constraint placed on their use. The constraints are either: 1) externally imposed by creditors, such as
through debt covenants, grantors, contributors, or laws and regulations of other governments, or 2)
imposed by law through constitutional provisions or enabling legislation. The final section is Unrestricted
Net Assets, and this represents net assets that generally can be used for any purpose. However, they are
not necessarily in a spendable form, such as cash.
The statement of activities demonstrates the degree to which the direct expenses of various functions and
activities of the City are offset by program revenues. Direct expenses are those that are clearly identifiable
with a specific function or activity. 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 property taxes, revenues are recognized when the use of
City of Auburn: 2011 CAFR Notes to the Financial Statements
58
resources is permitted, or when resources are available. Grant revenue is recognized in the period in which
the expenditure occurs and the eligibility requirements have been met. Non-exchange transactions, such as
contributions, are recognized when the donation eligibility requirements have been satisfied. Those specific
major revenue sources accrued are:
Property Taxes – King County and Pierce County collect property taxes and remit to the City daily or
monthly. 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 partially supported by the State of Washington’s motor vehicle fuel tax and is used
for major street construction.
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c. Debt Service funds – These funds account for the accumulation of resources for, and the
payment of, general long-term and special assessment debt principal, interest, and related
costs. These funds also include the 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 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 applied 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.
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b. Internal Service funds – These funds are used to account for the financing of goods and services
provided to other funds, departments, or governments on a cost reimbursement basis. The
City uses internal service funds to account for its fleet of vehicles, its maintenance and
operation of facilities, the City-wide provision of computer hardware and software services,
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.
a. Fire Relief and Pension Trust Fund - This 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.
b. Agency Fund – This 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:
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.
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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 Final
Budget Revisions Budget
Governmental Funds
General Fund 55,139,320$ 357,610$ 55,496,930$
Total Governmental Funds 55,139,320 357,610 55,496,930
Special Revenue Funds:
Local Street 2,000,000$ 1,399,040$ 3,399,040$
Arterial Street 13,328,300 3,226,830 16,555,130
Hotel/Motel Tax 209,000 (15,000) 194,000
Arterial Street Preservation 1,500,000 6,000 1,506,000
Drug Forfeiture Fund 496,010 47,000 543,010
Local Law Enforcement Block Grant 16,468 (1,029) 15,439
Housing and Community Development 542,410 138,920 681,330
Recreation Trails - - -
Cumulative Reserve 44,900 678,450 723,350
Total Special Revenue Funds 20,870,288 6,324,681 27,194,969
Total Budgeted Funds 76,009,608$ 6,682,291$ 82,691,899$
ORIGINAL AND SUPPLEMENTAL APPROPRIATIONS
E. Assets, Liabilities, and Fund Balance
1. Deposits and Investments
It is the City’s policy to invest all temporary cash surplus. At December 31, 2011, the Washington State
Local Government Investment Pool (LGIP) was holding $82,090,242 in short-term investments. This
amount is classified on the Statement of 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.
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.
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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 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 and Prepaid Expenses
Government fund types recognize the cost of inventory items and prepaid expenses (expenses that
benefit future periods) as expenditures in the year of purchase. In governmental funds, materials and
supplies remaining at year-end are immaterial and not included in inventory. In enterprise and internal
service funds, inventories are valued at cost using the weighted average costing method.
6. Restricted Assets
Restricted assets: customer deposits ($128,543), accrued interest payable ($1,358,940), bond proceeds
restricted for construction costs ($19,078,150), nonexpendable permanent endowment for cemetery
($1,449,220) and due from other governmental units ($2,339,377).
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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. For proprietary funds, interest costs incurred to bring certain assets to
the condition and location necessary for their intended use are capitalized as part of the historical cost
of acquiring the assets. Additionally, in situations involving the acquisition of certain assets financed
with the proceeds of tax-exempt borrowing, any interest earned on related interest-bearing investment
from such proceeds are offset against the related interest costs in determining either capitalization rates
or limitations on the amount of interest costs to be capitalized.
Capital assets of enterprise and internal service funds are recorded at cost. The capital assets of the
airport are carried at cost and include those acquired with capital contributed by the Federal
Government.
Capital assets of all funds are depreciated, and are calculated on the straight-line method using
estimated lives as follows:
Asset
Capitalization
Threshold
Depreciation
Method
Estimated
Useful Life
Building $5,000 Straight-line 20 - 50 years
Other Improvements $5,000 Straight-line 10 - 50 years
Equipment/Machinery $5,000 Straight-line 2 - 20 years
Infrastructure $5,000 Straight-line 25 - 50 years
Utility Plant $5,000 Straight-Line 25 - 50 years
At the inception of capital leases at the government fund reporting level, the net present value of
future minimum lease payments allocable to the capital asset is reflected as expenditures and an “other
financing source” of an equal amount.
9. 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
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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.
10. 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.
11. Fund Balance Components – Proprietary Funds
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.
12. Fund Balance Components – Governmental Funds
The fund balance amounts for governmental funds have been reclassified in accordance with GASB
Statement No. 54. As a result, amounts previously reported as reserved and unreserved are now
reported as nonspendable, restricted, committed, assigned, or unassigned.
Nonspendable fund balance includes items that cannot be spent. This includes activity that
is not in a spendable form (investments, prepaid amounts, long-term portion of loans/notes
receivable, or property held for resale unless the proceeds are restricted, committed or
assigned) and activity that is legally or contractually required to remain intact.
Restricted fund balance is externally (outside the City) enforceable limitations imposed by
creditors, grantors, contributors, laws and regulations of other governments, or laws
through constitutional provisions or enabling legislation.
Committed fund balance is self-imposed limitations imposed at the highest level of decision
making authority, namely, Mayor and Council. Mayor and Council approval is required to
commit resources or to rescind the commitment.
Assigned fund balance includes amounts that are constrained by the City’s intent to be used
for a specific purpose, but are neither restricted nor committed. Intent of use can be
expressed by City Council or by a designated official. For governmental funds, other than
the General Fund, this is the residual amount within the fund that is not restricted or
committed.
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Unassigned fund balance is the residual amount of the General Fund not included in the
four categories described above. Also, any deficit fund balances within the other
governmental fund types are reported as unassigned.
When expenditure is incurred for purposes for which both restricted and unrestricted resources are
available, it is the City’s policy to use restricted resources first. When expenditures are incurred for
purposes, for which unrestricted (committed, assigned, and unassigned) resources are available, and
amounts in any of these unrestricted classifications could be used, it is the City’s policy to spend
committed resources first, then assigned and unassigned, in that order.
The following shows the composition of the fund balance of the governmental funds for the fiscal year
ended December 31, 2011:
Arterial Capital Other Total
General Street Improvement Governmental Governmental
Fund Fund Fund Funds Funds
Nonspendable
Prepaids -$ -$ 4,320$ 4,320$
Cemetery Endowment - - - 1,449,220 1,449,220
Total Nonspendable - - - 1,453,540 1,453,540
Restricted
Major Street Construction - 1,783,698 - - 1,783,698
REET 1 Allowable Projects - - 2,406,910 - 2,406,910
REET 2 Allowable Projects 1,479,373 - 1,479,373
Parks and Trails Construction Projects - - - 323,906 323,906
Fenster Levee Setback - - - 159,377 159,377
Auburn Activity Center 193,883 193,883
Downtown Infrastructure Improvements - - - 1,473,727 1,473,727
City Tourism Promotion - - - 93,412 93,412
Drug Investigation and Enforcement - - - 948,619 948,619
Community Development Block Grant Program - - - 43,397 43,397
Recreational Trail Development - - - 15,321 15,321
Downtown Business Area Improvements - - - 21,599 21,599
Street and Fire Service Mitigation Fees - - - 3,783,804 3,783,804
Debt Service - - - 54,717 54,717
Total Restricted - 1,783,698 3,886,283 7,111,762 12,781,743
Committed
Local Street Improvements (Save our Streets)- - - 1,830,080 1,830,080
Aterial Street Preservation - - - 1,304,369 1,304,369
Total Committed - - - 3,134,449 3,134,449
Assigned
Appropriations Over Estimated Revenue 7,082,130 - - - 7,082,130
Downtown and Sidewalk Improvements 2,278,204 - 2,278,204
Local Street Improvements - - - 155,000 155,000
Parks and Trails Construction Projects - - - 107,601 107,601
School Administration Fees - - - 54,348 54,348
Cemetery Capital Enhancement and Maintenance - - - 107,350 107,350
Downtown Infrastructure Improvements 371,957 371,957
Debt Service - - - 45,912 45,912
Total Assigned 7,082,130 - 2,278,204 842,168 10,202,502
Unassigned
Unassigned 14,193,365 - - - 14,193,365
Total Unassigned 14,193,365 - - - 14,193,365
Total Fund Balances 21,275,495$ 1,783,698$ 6,164,487$ 12,541,919$ 41,765,599$
Major
Governmental Fund Balances
December 31, 2011
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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.
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.
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NOTE 3 – DEPOSITS AND INVESTMENTS
At December 31, 2011, the carrying amount of the City’s cash demand deposits with Key Bank totaled
$6,408,210 while the bank balance was $6,768,180. In addition, there was $93,100 in petty cash
($10,000 in the Drug Forfeiture Fund to be used for enforcements purposes, $7,600 in various petty cash
and cashier change funds, and $75,500 in fiduciary 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,
2011 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 2011, the net increase in the fair value of investments being held for more than one year is $16,003
at year-end.
As of December 31, 2011, the City had the following investments and maturities:
Fair Less than 1 to 2 2 to 3 Greater than
Investment Type Value 1 year years years 3 years
State investment pool 82,090,242$ 82,090,242$ -$ -$ -$
US Treasuries 89,769 - - - 89,769
US Agencies 10,014,483 - - 10,014,483 -
92,194,494$ 82,090,242$ -$ 10,014,483$ 89,769$
Reconciliation to government-
wide statement of net assets:
Total investments above 92,194,494$
Plus: cash in checking 6,408,210
Plus: petty cash 93,100
Less: cash investments in fiduciary funds (4,122,056)
Total cash and investments, government-
wide statement of net assets 94,573,748$
Schedule of Investments by Maturities
As of December 31, 2011
Investment maturities
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Governmental Business-Type
Activities Activities Total
Cash and Cash Equivalents 36,959,478$ 25,584,935$ 62,544,413$
Investments 6,012,980 4,001,502 10,014,482
Temporarily Restricted:
Cash and Cash Equivalents 8,557,006 12,008,627 20,565,633
Permanently Restricted:
Cash and Cash Equivalents 1,449,220 - 1,449,220
52,978,684$ 41,595,064$ 94,573,748$
Reconciliation of Cash and Investments
Government-Wide Statement of Fund Net Assets
As of December 31, 2011
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
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As of December 31, 2011, the City had investments in a limited number of investment instruments as
follows:
Federal Farm Credit Bank bonds
Federal Home Loan Bank bonds
Federal Home Loan Mortgage Corporation bonds
Federal National Mortgage Association bonds
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, 2011.
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
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:
State
Investment U.S.
Pool Securities Total
General Fund -$ 4,006,860$ 4,006,860$
Enterprise Funds - 4,001,503 4,001,503
Internal Service Funds - 2,006,120 2,006,120
Fiduciary Funds - 89,769 89,769
Treasurer's Residual Funds 82,090,242 - 82,090,242
Total 82,090,242$ 10,104,252$ 92,194,494$
As of December 31, 2011
Schedule of Investments by Fund Category and Investment Type
NOTE 4 – PROPERTY TAXES
Property taxes received during tax year 2011 were $14,683,329 including collection of prior year
delinquent assessments. Property taxes assessed for collection in tax year 2011 were based on a regular tax
levy of $1.82 per $1,000 on a total 2010 assessed value of $7,544,294,006.
For levy year 2011, to be received in 2012, the City’s regular tax levy is $1.93 per $1,000 on a 2011
assessed valuation of $7,199,853,130, as of December 31, 2011, for a total regular levy of $14,874,840.
State law provides that debt cannot be incurred in excess of the following percentages of the taxable
property of the City.
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1.50% of assessed value without a vote of the people
2.50% of assessed value with a vote of the people
The City has additional authority to incur the following debt as a percentage of total valuation.
2.50% of assessed value with a vote of the people, indebtedness is for utilities
2.50% of assessed value with a vote of the people, indebtedness is for parks, or open space
development
At December 31, 2011, the debt limits for the City were as follows:
For Parks or
Without General For Open Space
a Vote Purposes Utilities Development Total
Item 1.50%1.00%2.50%2.50%Capacity
Legal Limit 107,997,797$ 71,998,531$ 179,996,328$ 179,996,328$ 539,988,984$
Outstanding indebtedness (70,586,606) - - - (70,586,606)
Assets available 5,169,295 - - - 5,169,295
Margin available 42,580,486$ 71,998,531$ 179,996,328$ 179,996,328$ 474,571,673$
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 $1,000 of value. If the taxes of all districts exceed this amount, each is proportionately
reduced until the total is at or below the 1% limit.
2. Washington State law in RCW 84.55.010 limits the annual growth of regular property taxes to the
lesser of 1% or the rate of inflation. With a vote of the majority of the voters within a taxing district,
the 1% levy limitation can be “lifted” and additional taxes may be levied
3. The City may voluntarily levy taxes below the legal limit.
Special levies approved by the voters are not subject to the above limitations.
Property taxes are recorded as receivable and offset by a deferred revenue account when levied. Since
state law allows for the sale of property for failure to pay taxes, no estimate of uncollectible taxes is made.
City of Auburn: 2011 CAFR Notes to the Financial Statements
71
NOTE 5 – INTERFUND ACTIVITY
The next two tables summarize interfund activity during 2011. The first table details transfers while the
second lists loan activity. Transfers are legally authorized transfers of resources from a fund receiving
revenue to the fund through which resources are to be expended.
Funds Transfer Out Transfer In
Governmental funds:
General 334,807$ 1,078,439$
General - Cumulative reserve 723,345 -
Total general fund 1,058,152 1,078,439
Special revenue funds:
Local street fund - 150,000
Arterial street fund - 2,403,354
Local Law Enforce Block Grants 15,439 -
Mitigation fees 1,433,152 -
Total special revenue funds 1,448,591 2,553,354
Debt service funds:
1998 library GO - 286,200
2010 A&B Annex - 1,289,300
2010 C&D Local Rev - 104,305
LID guarantee 10,000 -
Total debt service funds 10,000 1,679,805
Capital projects funds:
Capital Improvement Major 3,694,290 378
Park construction Non Maj - 1,716,950
Capital improvement projects Non Maj - 382,000
Total capital projects funds 3,694,290 2,099,328
Proprietary funds:
Water 50,000 -
Sewer 50,000 -
Storm drainage 96,800 -
Cemetery - 231,300
Golf course - 448,607
Total proprietary funds 196,800 679,907
Internal service funds:
Facilities 644,700 -
Information services 500,000 -
Equipment rental 507,000 -
Total internal service funds 1,651,700 -
Permanent funds:
Cemetery endowed care 31,300 -
Total 8,090,833$ 8,090,833$
Transfers
Loans between funds are classified as interfund receivable and payable. Interfund loans do not affect total
fund equity.
Balance Balance
Due From Due To 1/1/2011 New Loans Repayments 12/31/2011
Golf course fund General fund 59,375$ 350,000$ 59,375$ 350,000$
Total interfund loans 59,375$ 350,000$ 59,375$ 350,000$
All interfund loans are considered short-term cash loans.
The purpose of the interfund loan to the Golf course Fund is to cover authorized expenditures from the Golf Course Fund.
Interfund Loans
City of Auburn: 2011 CAFR Notes to the Financial Statements
72
NOTE 6 – DUE FROM OTHER GOVERNMENTAL UNITS
As of December 31, 2011, the City had receivables due from other governmental units as follows:
General Fund:
City of Pacific 2,150$
Department of Justice 114,696
King County - Real Estate Excise Taxes 159,364
King County Sheriff's - Registered Sex Offender Grant 7,763
Muckleshoot Casino 163,281
WA State Military Department - EMPG Grant 20,678
Pierce County - Real Estate Excise Taxes 4,663
WA Auto Theft Prevention Authority - Auto Theft Prevention Grant 20,330
WA State Traffic Safety - Seat belt / DUI enforcement 3,985
WA State Treasurer - Sales Taxes 990,769
Total General Fund 1,487,679
Arterial Street Fund:
King County Department of Natural Resources & Parks 31,456
WA State Transportation Improvement Board - Arterial Street Imp.695,504
City of Pacific 12,101
WA Dept. of Transportation - Arterial street imp.1,476,698
Total Arterial Street Fund 2,215,759
Drug Forfeiture Fund:
VNET 17,408
Housing & Community Development:
U.S. Dept. of Housing - Community Development Block Grant 71,953
Municipal Park Construction:
Green River Community College 7,310
General Government Capital Improvements:
Pierce County - Real Estate Excise Taxes 26,947
Local Revitalization Fund:
Department of Commerce - Economic Development Administration 1,809,975
Sewer Fund:
2011 Storm 15,721
Storm Fund:
King County - Land/Flood Control 211,441
Department of Ecology - Stormwater 233,338
Total Storm Fund 444,779
Solid Waste Fund:
Department of Ecology - ECPG Grant 11,630
King County - Local hazardous waste management grant 19,693
King County - Waste reduction and recycling grant 7,126
Total solid waste fund 38,449
Facilities
City of Federal Way - Resource Conservation Manager 19,792
VRFA - GSA Utilities 946
King County - Medic One 200
20,938
Information Services Fund:
City of Seattle 12,527
City of Pacific 4,275
VRFA 2,024
Department of Justice 92,260
Total Information Services Fund 111,086
Total 6,268,004$
Reconciliation to government-wide statement of net assets:
Total above due from other governmental units 6,268,004
Amount due to fiduciary fund -
Total due from other governmental units, government-wide
6,268,004$ statement of net assets
Due from Other Governmental Units
City of Auburn: 2011 CAFR Notes to the Financial Statements
73
NOTE 7 – CAPITAL ASSETS AND DEPRECIATION
Capital asset activity for the year ended December 31, 2011 is as follows:
Balance Decreases/Balance
1/1/11 Increases Adjustments 12/31/11
Governmental activities:
Capital assets, not being depreciated:
Land 108,083,252$ 1,520,461$ -$ 109,603,713$
Construction in progress 13,981,035 21,516,518 (13,981,035) 21,516,518
Total capital assets, not being depreciated 122,064,287 23,036,979 (13,981,035) 131,120,231
Capital assets, being depreciated:
Buildings 54,935,293 4,045,602 (1,036,765) 57,944,130
Improvements other than buildings 14,112,467 1,437,974 (25,321) 15,525,120
Machinery and equipment 18,974,881 1,387,471 (391,779) 19,970,573
Intangibles 1,095,684 85,561 (85,561) 1,095,684
Infrastructure 258,004,183 16,314,676 (4,171) 274,314,688
Total capital assets being depreciated 347,122,508 23,271,284 (1,543,597) 368,850,195
Less: accumulated depreciation for:
Buildings (9,516,704) (1,090,917) 232,732 (10,374,889)
Improvements other than buildings (9,513,967) (467,815) - (9,981,782)
Machinery and equipment (12,211,701) (1,473,135) 320,158 (13,364,678)
Intangibles (231,086) (59,042) - (290,128)
Infrastructure (83,800,282) (8,836,954) - (92,637,236)
Total accumulated depreciation (115,273,740) (11,927,863) 552,890 (126,648,713)
Total capital assets, being depreciated, net 231,848,768 11,343,421 (990,707) 242,201,482
Governmental activities capital assets, net 353,913,055$ 34,380,400$ (14,971,742)$ 373,321,713$
Business-type activities:
Capital assets, not being depreciated:
Land 14,505,063$ -$ -$ 14,505,063$
Construction in progress 5,276,536 12,908,297 (2,863,505) 15,321,328
Total capital assets, not being depreciated 19,781,599 12,908,297 (2,863,505) 29,826,391
Capital assets, being depreciated:
Buildings 11,308,432 - - 11,308,432
Improvements other than buildings 216,998,085 17,902,488 - 234,900,573
Machinery and equipment 3,089,375 131,437 - 3,220,812
Total capital assets being depreciated 231,395,892 18,033,925 - 249,429,817
Less: accumulated depreciation for:
Buildings (4,191,865) (382,894) - (4,574,759)
Improvements other than buildings (71,234,222) (5,292,125) - (76,526,347)
Machinery and equipment (2,685,411) (78,797) - (2,764,208)
Total accumulated depreciation (78,111,498) (5,753,816) - (83,865,314)
Total capital assets, being depreciated, net 153,284,394 12,280,109 - 165,564,503
Business-type activities capital assets, net 173,065,993$ 25,188,406$ (2,863,505)$ 195,390,894$
Schedule of Capital Asset Activity
City of Auburn: 2011 CAFR Notes to the Financial Statements
74
Depreciation/amortization expense was charged to functions/programs of the City as follows:
Government activities:
General government 752,508$
Public safety 420,517
Transportation 8,960,103
Physical environment -
Culture and recreation 518,099
Economic environment -
Capital assets held by the City's internal service funds are charged to the various
functions based on their usage of the assets 1,276,636
Total depreciation/amortization expense - governmental activities 11,927,863$
Business-type activities:
Water 2,080,667$
Sanitary sewer 1,603,210
Storm water 1,278,402
Solid waste 18,819
Golf course 321,641
Airport 393,078
Cemetery 57,999
Total depreciation expense - business-type activities 5,753,816$
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 short-term rentals.
Lease Payable
Theater
2012 73,950$
2013 73,951
2014 73,950
2015 73,950
2016 73,950
2017-2021 369,177
Total minimum lease payments 738,928
Less: Amounts representing interest (172,716)
Present value of future minimum lease payments 566,212$
Schedule of Future Minimum Lease Payments
As of December 31, 2011, the gross value of the Auburn Theater facility acquired under the capital lease is
$695,504. Monthly lease payments of $6,162.50 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 5.55 percent.
City of Auburn: 2011 CAFR Notes to the Financial Statements
75
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:
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.
The City advance refunded the 1998 Limited Tax General Obligation bonds in 2010. The debt is
considered extinguished in an in-substance defeasance and, accordingly is not reflected in the
accompanying financial statements. The remaining balance of outstanding defeased debt as of
December 31, 2011 is $1,685,000.
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.
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.
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 $9,491,811. Five of the loans are
being repaid from water and sewer fund revenues over a 20-year period that begins upon each project
completion. The other loan is being repaid from arterial street fund revenues over a 20-year period that
began in 2009 upon project completion.
City of Auburn: 2011 CAFR Notes to the Financial Statements
76
Compensated Absences are paid by those funds that have employees. These are mostly payable by the
General fund and enterprise funds.
The following schedules summarize the long-term debt transactions of the City for the year ended
December 31, 2011. The first table summarizes all debt transactions for Auburn, while the second provides
detailed information on all long-term debt. Additional schedules reflect total annual debt service
requirements to maturity and the reconciliation of debt by fund type.
General
Obligation (1)Utility
Employee
Leave Benefit
Other Post
Employment
Benefits Premium
Deferred
Charges
Due To Other
Governments Total
Long-term debt payable 12/31/10 39,091,575$ 32,069,134$ 2,649,705$ 2,068,840$ 966,169$ (554,357)$ 27,776,850$ 104,067,916$
Added - - 1,858,516 2,123,011 - - - 3,981,527
Retired (1,308,856) (1,013,831) (1,811,116) (1,095,684) (83,390) 41,610 (196,000) (5,467,267)
Long-term debt payable 12/31/11 37,782,719$ 31,055,303$ 2,697,105$ 3,096,167$ 882,779$ (512,747)$ 27,580,850$ 102,582,176$
(1) Includes capital leases
CHANGES IN LONG-TERM LIABILITES SUMMARY
Employee
Leave Benefits
Year Principal Interest Principal Interest Principal Interest Principal Principal (1)Interest
2012 1,426,000$ 3,553,389$ 43,624$ 30,326$ 1,109,213$ 1,284,117$ 1,855,051$ 4,433,888$ 4,867,832$
2013 2,073,650 3,495,405 46,108 27,843 1,689,213 1,266,854 84,205 3,893,176 4,790,102
2014 2,141,500 3,423,436 48,733 25,217 1,719,213 1,232,140 84,205 3,993,651 4,680,793
2015 2,211,900 3,336,192 51,507 22,443 1,749,213 1,194,737 84,205 4,096,825 4,553,372
2016 2,075,150 3,247,736 54,440 19,510 1,789,213 1,149,511 84,205 4,003,008 4,416,757
2017-2021 10,363,950 14,879,726 321,800 47,377 9,266,329 5,002,288 421,025 20,373,104 19,929,391
2022-2026 10,792,950 12,913,577 - - 8,458,651 3,336,466 84,208 19,335,809 16,250,043
2027-2031 11,288,100 10,278,936 - - 6,640,766 1,058,145 - 17,928,866 11,337,081
2032-2036 12,876,050 6,669,010 - - - - - 12,876,050 6,669,010
2037-2039 8,181,600 2,257,202 - - - - - 8,181,600 2,257,202
Totals 63,430,850$ 64,054,609$ 566,212$ 172,716$ 32,421,811$ 15,524,258$ 2,697,104$ 99,115,977$ 79,751,583$
(1)99,115,977$ Principal debt service requirements to maturity
3,096,167 Other Post Employment Benefits
882,779 Premium
(512,747) Deferred Charges
102,582,176$ Long Term Liabilities 12/31/2011
Obligation Bonds Obligation Bonds/Loans Long-Term Debt
DEBT SERVICE REQUIREMENT TO MATURITY
General Capital Lease Utility Total
City of Auburn: 2011 CAFR Notes to the Financial Statements
77
Interest Maturity Original Principal Balance Balance Due WithinIssue Name Rates Date Amount Installments 12/31/10 Additions Reductions 12/31/11 One Year
GOVERNMENTAL DEBT
General Obligation Bonds:
LTGO 2010A (1)2.00-4.50%12/1/2018 4,385,000$ $510,000 - $270,000 3,875,000$ -$ (690,000)$ 3,185,000$ 705,000$
LTGO 2010B (1)3.27-6.24%12/1/2039 20,365,000 $535,000 - $1,240,000 20,365,000 - - 20,365,000 0
LTGO 2010C (1)2.00-4.00%12/1/2014 920,000 $105,000 - $215,000 815,000 - (195,000) 620,000 200,000
LTGO 2010D (1)3.27-6.19%12/1/2034 6,320,000 $220,000 - $445,000 6,320,000 - - 6,320,000 0
Total General Obligation Bonds 31,990,000 31,375,000 - (885,000) 30,490,000 905,000
Capital Lease:
Auburn Avenue Theater 5.55%12/31/2021 695,504 $5,500 - $6,162 604,685 - (38,473) 566,212 43,624
Employee Leave Benefits:
Compensated absences - 2,005,725 1,398,244 (1,374,817) 2,029,152 1,395,638
Other Post Employment Benefits:
LEOFF 1 - 2,068,840 2,123,011 (1,095,684) 3,096,167 -
Public Works Trust Fund Loans:
PWTF 2008 0.50%7/1/2028 1,527,273 80,383 1,446,890 - (80,383) 1,366,507 80,383
Premium Related to Debt 267,976 - (37,868) 230,108 -
Deferred Charges Related to Debt (288,196) - 15,970 (272,226) -
Total Governmental 34,212,777$ 37,480,920$ 3,521,255$ (3,496,255)$ 37,505,920$ 2,424,645$
BUSINESS-TYPE DEBT
General Obligation Bonds
GO refunding bond 2005 (1)4.00-4.50%12/1/2019 1,375,000$ $10,000 - $190,000 1,260,000$ -$ (100,000)$ 1,160,000$ 105,000$
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 1,130,000 - (205,000) 925,000 215,000
Total General Obligation Bonds 6,535,000 5,665,000 - (305,000) 5,360,000 320,000
Revenue Bonds:
Utility sys refunding bonds 2005 (1)3.00-4.75%11/1/2016 2,765,000 $45,000 - $355,000 1,925,000 - (290,000) 1,635,000 305,000
Utility sys bonds 2010 (1)3.00-6.40%12/1/2030 21,295,000 $575,000 - $1,720,000 21,295,000 - - 21,295,000 -
Total Revenue Bonds 24,060,000 23,220,000 - (290,000) 22,930,000 305,000
Employee Leave Benefits:
Compensated absences - 643,980 460,272 (436,299) 667,953 459,413
Public Works Trust Fund Loans:
PWTF 1999 1.00%7/1/2019 3,465,000 $182,368 1,641,316 - (182,368) 1,458,948 182,368
PWTF 2001 0.50%7/1/2021 4,290,405 $227,086 2,497,941 - (227,086) 2,270,855 227,086
PWTF 2002 1.00%7/1/2022 641,250 $26,114 313,374 - (26,115) 287,259 26,114
PWTF 2004 0.50%7/1/2024 2,049,036 $107,844 1,509,816 - (107,844) 1,401,972 107,844
PWTF 2006 0.50%7/1/2026 3,325,000 $180,418 2,886,687 - (180,418) 2,706,269 180,418
Total Public Works Trust Fund Loans 13,770,691 8,849,134 - (723,831) 8,125,303 723,830
Premium Related to Debt 698,193 - (45,522) 652,671 -
Deferred Charges Related to Debt (266,161) - 25,640 (240,521) -
Total Proprietary 44,365,691$ 38,810,146$ 460,272$ (1,775,012)$ 37,495,406$ 1,808,243$
Total All Funds 78,578,468$ 76,291,066$ 3,981,527$ (5,271,267)$ 75,001,326$ 4,232,888$
(1) Subject to federal arbitrage compliance rules.
CHANGES IN LONG-TERM LIABILITIES
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.
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.
City of Auburn: 2011 CAFR Notes to the Financial Statements
78
Interest Maturity Original Principal Balance Balance Due Within
Issue Name Rates Date Amount Installments 12/31/10 Additions Reductions 12/31/11 One Year
GOVERNMENTAL DEBT:
General Obligation Bonds:
Valley Communication Public Dev Auth 3.00-4.00%12/1/2015 1,065,000$ $21,000 - $220,000 1,044,000$ -$ (196,000)$ 848,000$ 201,000$
SCORE Public Development Authority 3.00-6.62%1/1/2039 26,732,850 $593,650 - $1,601,150 26,732,850 - - 26,732,850 -
Total General Obligation Bonds
Due Other Governments 27,797,850$ 27,776,850$ -$ (196,000)$ 27,580,850$ 201,000$
CHANGES IN LONG-TERM LIABILITIES DUE OTHER GOVERNMENTS
Enterprise Governmental
Funds Funds 12/31/11
Liabilities payable from restricted assets:
Revenue bonds 2,102,537$ -$ 2,102,537$
Long-term bonds payable:
General obligation bonds 5,360,000 30,490,000 35,850,000
Capital lease - 566,212 566,212
Revenue bonds 20,827,463 - 20,827,463
Special assessments with - - -
government commitment
Public Works Trust Fund loans 8,125,303 1,366,507 9,491,810
Due to Other Governments - 27,580,850 27,580,850
Employee leave benefits 667,953 2,029,152 2,697,105
Other Post Employment Benefits - 3,096,167 3,096,167
Premium 652,671 230,108 882,779
Deferred charges (240,521) (272,226) (512,747)
Total long-term debt 37,495,406$ 65,086,770$ 102,582,176$
LONG-TERM LIABILITIES RECONCILIATION
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 2011 was 2.52. The ratio indicates the direction and
degree to which the revenue stream exists to meet the current debt burden. The ratio is calculated by
dividing the net revenue available by debt service requirements.
The restricted rate stabilization fund for the utility revenue bonds was established to minimize the effect on
rates of revenue fluctuations between years. By transferring cash into this stabilization fund, adjusted net
revenue available for debt service, as defined, would be decreased by the amount of the transfer.
Conversely, transfers out of the account would increase adjusted net revenue available for debt service.
Estimated Arbitrage Rebate
The Federal Tax Reform Act of 1986 requires issuers of tax-exempt debt of over $5 million to make
payments to the United States Treasury of investment interest received at yields that exceed the issuer’s tax-
exempt borrowing rates. Payments of arbitrage rebate amounts due under these regulations must be made
to the U.S. Treasury every five years. The City’s estimated rebatable arbitrage amount as of December 31,
2011 is $0 for its tax-exempt bond issues subject to the Tax Reform Act issued through that date.
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 retirement plans. The Department
City of Auburn: 2011 CAFR Notes to the Financial Statements
79
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;
or it may be downloaded from the DRS website at www.drs.wa.gov. The following disclosures are made
pursuant to GASB Statement 27, Accounting for Pensions by State and Local Government Employers, and
Statement 50, Pension Disclosure, an Amendment of GASB Statement No. 25 and No. 27.
Public Employees’ Retirement System (PERS) Plans 1, 2, and 3
Plan Description
The Legislature established PERS in 1947. Membership in the system includes: elected officials; state
employees; employees of the Supreme, Appeals, and Superior courts (other than judges currently in the
Judicial Retirement System); employees of legislative committees; community and technical colleges,
college and university employees not participating in higher education retirement programs; judges of
district and municipal courts; and employees of local governments. PERS retirement benefit provisions are
established in chapters 41.34 and 41.40 RCW and may be amended only by the State Legislature.
PERS members 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) was granted at age 66 based
upon years of service times the COLA amount. This benefit was eliminated by the Legislature, effective
July 1, 2011. Plan 1 members may 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
City of Auburn: 2011 CAFR Notes to the Financial Statements
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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 was granted at age 66 based upon years of service times the COLA
amount. This benefit was eliminated by the Legislature, effective July 1, 2011. Plan 1 members may 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 members can receive credit for military service. 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 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.
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.
City of Auburn: 2011 CAFR Notes to the Financial Statements
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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 varies with age, for each year before age 65.
If they have 30 service credit years and are at least 55 years old, they have the choice of a benefit
that is reduced by 3 percent for each year before age 65; or a benefit with a smaller (or no)
reduction factor (depending on age) that imposes stricter return-to-work rules.
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 contributions and 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 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.
City of Auburn: 2011 CAFR Notes to the Financial Statements
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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.
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 1,197 participating employers in PERS. Membership in PERS consisted of the following as of the
latest actuarial valuation date for the plans of June 30, 2010:
Retirees and Beneficiaries Receiving Benefits 76,899
Terminated Plan Members Entitled to but not yet Receiving Benefits 28,860
Active Plan Members Vested 105,521
Active Plan Members Non-vested 51,005
Total 262,285
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 Plan 3 employee contribution rates range from 5 percent to 15 percent,
based on the member choice. 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.
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The required contribution rates expressed as a percentage of current year covered payroll, as of December
31, 2011, were as follows:
Members not participating in JBM:
PERS Plan 1 PERS Plan 2 PERS Plan 3
Employer*7.25%**7.25%**7.25%***
Employee 6.00%****4.64%*********
* The employer rates include the employer administrative expense fee currently set at 0.16%.
** The employer rate for state elected officials is 10.80% for Plan 1 and 7.25% 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 4.64% 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*7.25%7.25%7.25%**
Employee 12.26%11.60%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
2011 26,173$ 1,002,132$ 227,334$
2010 21,906 845,629 181,993
2009 49,565 1,167,042 263,837
The employer contribution rate for the City was 5.31% in 2009 and 2010, and 7.25% in 2011.
Law Enforcement Officers’ and Fire Fighters’ Retirement System (LEOFF) Plans 1 and 2
Plan Description
The Legislature established LEOFF in 1970. Membership in the system includes all full-time, fully
compensated, local law enforcement commissioned officers, firefighters and as of July 24, 2005,
emergency medical technicians. LEOFF membership is comprised primarily of non-state employees, with
Department of Fish and Wildlife enforcement officers, who were first included in prospectively effective
July 27, 2003, being an exception. LEOFF retirement benefit provisions are established in Chapter 41.26
RCW and may be amended only by the State Legislature.
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.
City of Auburn: 2011 CAFR Notes to the Financial Statements
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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.
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 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 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.
City of Auburn: 2011 CAFR Notes to the Financial Statements
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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 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.
City of Auburn: 2011 CAFR Notes to the Financial Statements
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There are 374 participating employers in LEOFF. Membership in LEOFF consisted of the following as of
the latest actuarial valuation date for the plans of June 30, 2010:
Retirees and Beneficiaries Receiving Benefits 9,647
Terminated Plan Members Entitled to but not yet Receiving Benefits 782
Active Plan Members Vested 13,420
Active Plan Members Non-vested 3,656
Total 27,505
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, 2011, 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
2011 -$ 459,991$
2010 190 469,715
2009 189 470,102
Public Safety Employees’ Retirement System (PSERS) Plan 2
Plan Description
The Legislature created PSERS in 2004 and the system 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. PSERS retirement benefit provisions are
established in chapter 41.37 RCW and may be amended only by the State Legislature.
City of Auburn: 2011 CAFR Notes to the Financial Statements
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PSERS is a cost-sharing multiple-employer retirement system comprised of a single defined benefit plan,
PSERS Plan 2.
PSERS defined benefit retirement benefits are financed from a combination of investment earnings and
employer and employee contributions.
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 corrections departments of Washington state cities except for Seattle, Tacoma and Spokane;
and interlocal corrections agencies.
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.
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 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 receive 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 also purchase up to 24 consecutive months of service credit for each period of
temporary duty disability.
City of Auburn: 2011 CAFR Notes to the Financial Statements
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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.
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 76 participating employers in PSERS. Membership in PSERS consisted of the following as of the
latest actuarial valuation date for the plan of June 30, 2010:
Retirees and Beneficiaries Receiving Benefits 7
Terminated Plan Members Entitled to but not yet Receiving Benefits -
Active Plan Members Vested -
Active Plan Members Non-vested 4,210
Total 4,217
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, 2011, were as follows:
PSERS Plan 2
Employer*8.86%
Employee 6.36%
*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
2011 -$
2010 55,262
2009 58,643
City of Auburn Fire Relief and Pension Plan
The City is the administrator of the Firemen’s Pension Plan (Plan), which is a closed, single-employer
defined benefit pension plan that was established in conformance with RCW Chapters 41.16 and 41.18.
This plan 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
City of Auburn: 2011 CAFR Notes to the Financial Statements
89
Plan consists of paying all benefits, including payments to beneficiaries and healthcare, for firefighters who
retired prior to March 1, 1970, and excess pension and healthcare benefits of LEOFF for covered firefighters
who retired after March 1, 1970. Benefits and refunds of the defined benefit pension plan are recognized
when due and payable in accordance with the Plan. The Plan does not issue a separate financial report.
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 2011, $66,375 was received from
the state from taxes on fire insurance premiums. On-behalf payments of fringe benefits and salaries for the
City’s employees were recognized as revenues and expenditures/expenses during the period. Administrative
costs, such as City staff time and actuarial valuation costs are funded from interest earnings or City
contributions.
Membership of the Firemen’s Pension Plan consisted of 14 eligible, of which 12 are receiving benefits.
Unfunded
Actuarial Actuarial UAAL as a
Actuarial Accrued Accrued Percentage
Actuarial Value Liabilities -Liabilities Funded Covered of Covered
Valuation Date of Assets Entry Age (UAAL)Ratio Payroll Payroll
January 1, 1999 2,096$ 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)
Fiscal Actual Annual Required Percentage Annual Percentage Net
Year Employer Contribution of ARC Pension Cost of APC Pension Asset
Ending Contributions (ARC)Contributed (APC)Contributed Obligation
December 31, 1999 52,738$ 5,381$ 980%
December 31, 2000 31,721 5,381 590%5,520$ 574.66%(48,808)$
December 31, 2001 37,281 - N/A 341 10932.84%(85,748)
December 31, 2002 40,869 - N/A 684 5975.00%(125,933)
December 31, 2003 45,664 - 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 17,920 (5,048) N/A (5,420) N/A (6,688)
December 31, 2008 12,167 (5,048) N/A (4,885) N/A (23,740)
December 31, 2009 37,232 (78,233) N/A (77,503) N/A (138,475)
December 31, 2010 49,049 (78,233) N/A (73,634) N/A (261,158)
December 31, 2011 43,474 21,469 202%30,859 140.88%(273,773)
GASB STATEMENT No. 27GASB STATEMENT No. 25
SCHEDULE OF EMPLOYER CONTRIBUTIONS THREE YEAR TREND INFORMATION
City of Auburn: 2011 CAFR Notes to the Financial Statements
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Fiscal ARC at Amort.Annual Total
Year End of Interest on ARC Factor Pension Cost Employer Change in NPO Asset
Ending Year (1)NPO (2)Adjustment *(APC)Contributions NPO Balance (3)
12/31/1999 5,381$ 1,742$ 1,874$ 13.28%5,249$ 52,738$ (47,489)$ (22,667)$
12/31/2000 5,381 (1,582) (1,721) 13.14%5,520 31,721 (26,201) (48,808)
12/31/2001 - (3,417) (3,758) 12.99%341 37,281 (36,940) (85,748)
12/31/2002 - (6,002) (6,686) 12.83%684 40,869 (40,185) (125,933)
12/31/2003 - (8,815) (9,952) 12.65%1,137 45,664 (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 16,652
12/31/2007 (5,048) 833 1,205 13.82%(5,420) 17,920 (23,340) (6,688)
12/31/2008 (5,048) (334) (497) 13.46%(4,885) 12,167 (17,052) (23,740)
12/31/2009 (78,233) (950) (1,680) 14.13%(77,503) 37,232 (114,735) (138,475)
12/31/2010 (78,233) (5,539) (10,138) 13.66%(73,634) 49,049 (122,683) (261,158)
12/31/2011 21,469 (10,446) (19,836) 13.17%30,859 43,474 (12,615) (273,773)
(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:
Actuarial Valuation Info:
Fair market value
January 1, 2011
Entry age normal
30-year, closed as of January 1, 1999
18 years
Inflation rate:2.75%
Investment rate of return:4.0%
Projected salary increases:3.75%
Cost-of living adjustments:2.75%
Actuarial Assumptions
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).
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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 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 paid out of the General fund.
Membership
As of December 31, 2011, there were 2 active employees and 59 retirees meeting the eligibility
requirements of a LEOFF 1 member. This is considered a closed group with no new members. The 2 active
members are employed by VRFA which bills the City annually for their medical costs.
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 following table 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
Annual Required Contribution (ARC)12/31/2009 12/31/2010 12/31/2011
1. Annual Normal Costs at beginning of year 90,257$ 90,257$ 101,456$
2. Amortization of UAAL at beginning of year 1,540,432 1,540,432 2,011,425
3. Interest to end of year 81,534 81,534 84,515
4. ARC at end of year 1,712,223$ 1,712,223$ 2,197,396$
5. Interest on Net OPEB Obligation 39,660 72,339 82,754
6. Adjustment to ARC 60,618 114,014 157,139
7. Annual OPEB Cost 1,691,265$ 1,670,548$ 2,123,011$
8. Employer Contributions 1,037,683 1,048,494 1,095,684
9. Change in Net OPEB Obligation 653,582 622,054 1,027,327
10. Net OPEB Obligation at beginning of year 793,204 1,446,786 2,068,840
11. Net OPEB Obligation at end of year 1,446,786$ 2,068,840$ 3,096,167$
The net OPEB obligation of $3,096,167 is included as a non-current liability on the Statement of Net
Assets.
The City’s annual OPEB cost, the percentage of OPEB costs contributed to the plan, and the net OPEB
obligation for 2011, 2010 and 2009 are as follows:
City of Auburn: 2011 CAFR Notes to the Financial Statements
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Contributions as a
Annual Percentage of Net OPEB
Fiscal Year Ending OPEB Cost Annual OPEB Cost Obligation
December 31, 2011 2,123,011$ 52%3,096,167$
December 31, 2010 1,670,548 63%2,068,840
December 31, 2009 1,691,265 61%1,446,786
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 long-term 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 inflation
rate 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.
City of Auburn: 2011 CAFR Notes to the Financial Statements
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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 Board of
Trustees of the Trust. Retirees of the City receiving medical benefits from the Trust contribute up to
$751.55 per month for non-Medicare enrolled retiree-only coverage, $1,507.70 for non-Medicare enrolled
retiree and spouse coverage, $1,166.50 for Medicare enrolled retiree and non-Medicare enrolled spouse (or
non-Medicare enrolled retiree and Medicare-enrolled spouse) and $825.35 for Medicare-enrolled retiree
and spouse coverage.
Participating Employers are not contractually required to contribute an assessed rate each year by the Trust
for non-LEOFF 1 retirees. The retire pays for 100% of the premium.
NOTE 13 – CONSTRUCTION COMMITMENTS
At December 31, 2011 the City had the following contractual obligations on construction projects:
Amount Outstanding
Street projects 3,024,991$
Utilities projects 4,368,497
Other projects 1,396,467
Total commitments 8,789,955$
SCHEDULE OF OUTSTANDING CONSTRUCTION OBLIGATIONS
As of December 31, 2011
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 2011, of the $5,934 net appreciation on investments, all was available for expenditures. Amounts that
are available for expenditure are reflected as unrestricted net assets.
City of Auburn: 2011 CAFR Notes to the Financial Statements
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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 2011 cost distribution for the five participating cities is as follows:
Dispatchable Percent of
Calls Total *
Renton 73,519 21.39%
Kent 94,760 27.57%
Auburn 66,805 19.43%
Tukwila 33,025 9.61%
Federal Way 75,628 22.00%
Total 343,737 100.00%
* Distribution of current year net income is based on these budgeted percentages.
City of Auburn: 2011 CAFR Notes to the Financial Statements
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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 $57 million King County levy.
This agreement provides that upon voluntary termination of any sub-region participation in the system, it
surrenders its radio frequencies, relinquishes its equipment and transfers any unexpended levy proceeds and
association equipment replacement reserves to another sub-region or consortium of sub-regions.
The share of equity belonging to the five participating cities is as follows:
Item Renton Kent Auburn Tukwila Federal Way Total
Equity Dec. 31, 2010 4,833,671$ 6,841,894$ 4,575,538$ $2,739,460 3,090,648$ 22,081,211$
Current year change 163,082 210,199 148,189 73,257 167,760 762,487
Equity Dec 31, 2011 4,996,753$ 7,052,093$ 4,723,727$ 2,812,717$ 3,258,408$ 22,843,698$
% of equity 21.87%30.87%20.68%12.31%14.26%
% of 2011 distribution 21.39%27.57%19.43%9.61%22.00%
Liabilities are the responsibility of the five participating cities in direct proportion to their equity position.
Complete audited financial statements for Valley Communications Center can be obtained from Valley
Communications Center, 27519 108th Ave SE, Kent, WA 98030, or telephone 253-372-1300.
South Correctional Entity (SCORE)
The South Correctional Entity (SCORE) consolidated correctional facility was established February 25,
2009, when an Interlocal Agreement (the “Original Interlocal Agreement”) was entered into by seven
participating municipal governments, the “Member Cities” of Auburn, Burien, Des Moines, Federal Way,
City of Auburn: 2011 CAFR Notes to the Financial Statements
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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 $86 million in
special obligation bonds in 2009 to carry out the facility development project. The following is a
summary of the debt service requirements for the bond issue:
35% BABs Auburn Burien Federal Way Renton SeaTac Tukwila
Year Principal Interest Subsidy Total 31%4%18%36%3%8%
2012 -$ 5,155,732$ (1,675,089)$ 3,480,643$ 1,078,999$ 139,226$ 626,516$ 1,253,031$ 104,419$ 278,451$
2013 1,915,000 5,126,998 (1,675,089) 5,366,909 1,663,742 214,676 966,044 1,932,087 161,007 429,353
2014 1,950,000 5,066,566 (1,654,975) 5,361,591 1,662,093 214,464 965,086 1,930,173 160,848 428,927
2015 1,990,000 4,995,069 (1,632,787) 5,352,282 1,659,207 214,091 963,411 1,926,822 160,568 428,183
2016 2,065,000 4,911,886 (1,632,787) 5,344,099 1,656,671 213,764 961,938 1,923,876 160,323 427,528
2017-2021 11,545,000 22,986,907 (7,869,713) 26,662,194 8,265,280 1,066,488 4,799,195 9,598,390 799,866 2,132,976
2022-2026 13,945,000 19,586,127 (6,994,733) 26,536,394 8,226,282 1,061,456 4,776,551 9,553,102 796,092 2,122,912
2027-2031 17,010,000 14,723,464 (5,346,730) 26,386,734 8,179,888 1,055,469 4,749,612 9,499,224 791,602 2,110,939
2032-2036 20,955,000 8,498,417 (3,217,063) 26,236,354 8,133,270 1,049,454 4,722,544 9,445,087 787,091 2,098,908
2037-2039 14,860,000 1,502,494 (697,922) 15,664,572 4,856,017 626,583 2,819,623 5,639,246 469,937 1,253,166
Totals 86,235,000$ 92,553,660$ (32,396,888)$ 146,391,772$ 45,381,449$ 5,855,671$ 26,350,520$ 52,701,038$ 4,391,753$ 11,711,343$
Note: Interest is to be paid from bond proceeds during the construction period (2010 - 2011)
Summary of Debt Service Requirements
Debt Service Schedule Debt Service Allocation to Owner Cities
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, 2011 related to SCORE:
City of Auburn: 2011 CAFR Notes to the Financial Statements
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Member City Percent of Equity 2010 Equity Balance 2011 Distribution 2011 Equity Balance
Auburn 31.00%1,601,588$ 1,587,732$ 3,189,320$
Burien 4.00%206,656 204,869 411,525
Federal Way 18.00%929,954 921,909 1,851,863
Renton 36.00%1,859,910 1,843,818 3,703,728
SeaTac 3.00%154,992 153,651 308,643
Tukwila 8.00%413,313 409,737 823,050
Grand Totals 100.00%5,166,413$ 5,121,716$ 10,288,129$
South Correctional Entity (SCORE)
2011 Owner Cities Equity Allocation
Completed financial statements for SCORE and SCORE PDA can be obtained at SCORE, 20817 17th Avenue
South, Des Moines, WA 98198.
Balance Additions Reductions Balance
12/31/2010 12/31/2011
Valley Communication Public Dev Auth 1,044,000$ -$ (196,000)$ 848,000$
SCORE Public Development Authority 26,732,850 - - 26,732,850
Total Due to Other Government Units 27,776,850 27,580,850
Valley Communications Center 4,575,538 148,189 - 4,723,727
South Correctional Entity (SCORE)1,601,588 1,587,732 - 3,189,320
Total Joint Venture Capital Assets 6,177,126 1,735,921 - 7,913,047
Total Investment in Joint Ventures 35,493,897$
Investment in Joint Ventures
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 2011 Auburn paid $538 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 2011 were $218,961. Medical premiums and benefit
payments made under the Fire Relief and Pension Plan for 2011 were $147,281.
City of Auburn: 2011 CAFR Notes to the Financial Statements
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NOTE 17 – CONTINGENCIES AND LITIGATION
As of December 31, 2011, 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 self-insuring, and / or jointly
contracting for risk management services. WCIA has a total of 150 Members.
New members initially contract for a three-year term, and thereafter automatically renew on an annual
basis. A one-year withdrawal notice is required before membership can be terminated. Termination does
not relieve a former member from its unresolved loss history incurred during membership.
Liability coverage is written on an occurrence basis, without deductibles. Coverage includes general,
automobile, police, 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 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.
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
City of Auburn: 2011 CAFR Notes to the Financial Statements
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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, 2011 to report.
City of Auburn: 2011 CAFR Notes to the Financial Statements
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City of Auburn: 2011 CAFR Fund Financial Statements and Schedules
101
NON-MAJOR GOVERNMENTAL FUNDS
The City has four types of Non-Major Governmental Funds.
Special Revenue Funds
Special revenue funds account for the proceeds of specific revenue sources and are
segregated into individual funds to ensure that expenditures are made exclusively for
qualified purposes. Special revenue funds are accounted for on a modified accrual basis.
Biennial budgets are adopted with appropriations lapsing at year-end.
Debt Service Funds
Debt service funds account for payments of principal and interest on general obligation and
special assessment long-term debt.
Capital Project Funds
Capital project funds account for the City of Auburn's financial resources used for the
acquisition or construction of major non-proprietary capital facilities.
Permanent Funds
Permanent funds are used to report resources that are legally restricted to the extent that
only earnings, and not principal, may be used for purposes that support City programs that
are for the benefit of the City or its citizens.
City of Auburn: 2011 CAFR Fund Financial Statements and Schedules
102
Total Total Total Total Total
Nonmajor Nonmajor Nonmajor Nonmajor Nonmajor
Special Revenue Debt Service Capital Projects Permanent Governmental
Funds Funds Funds Funds Funds
ASSETS:
Cash and Cash Equivalents 8,473,910$ 100,629$ 1,034,223$ 1,556,570$ 11,165,332$
Receivables:
Special Assessments - 577,602 - - 577,602
Due From Other Governmental Units 89,361 - 1,817,285 - 1,906,646
Prepaids 4,320 - - - 4,320
Total Assets 8,910,333$ 678,231$ 3,157,861$ 1,556,570$ 14,302,995$
LIABILITIES AND FUND BALANCES:
Liabilities:
Current Payables 653,464$ -$ 527,410$ -$ 1,180,874$
Deferred Revenue 2,600 577,602 - - 580,202
Total Liabilities 656,064 577,602 527,410 - 1,761,076
Fund Balances:
Nonspendable 4,320 - - 1,449,220 1,453,540
Restricted 4,906,152 54,717 2,150,893 - 7,111,762
Committed 3,134,449 - - - 3,134,449
Assigned 209,348 45,912 479,558 107,350 842,168
Total Fund Balances 8,254,269 100,629 2,630,451 1,556,570 12,541,919
Total Liabilities and Fund Balances 8,910,333$ 678,231$ 3,157,861$ 1,556,570$ 14,302,995$
December 31, 2011
City of Auburn, Washington
COMBINING BALANCE SHEET
NON-MAJOR GOVERNMENT FUNDS
City of Auburn: 2011 CAFR Fund Financial Statements and Schedules
103
Total Total Total Total Total
Nonmajor Nonmajor Nonmajor Nonmajor Nonmajor
Special Revenue Debt Service Capital Projects Permanent Governmental
REVENUES:
Taxes:
Property 2,000,000$ -$ 116,435$ -$ 2,116,435$
Retail Sales & Use - 282,129 - - 282,129
Interfund Utility 421,185 - - - 421,185
Utility 1,713,234 - - - 1,713,234
Excise 65,058 - - - 65,058
Other 58,678 - - - 58,678
Intergovernmental 723,966 537,437 2,222,054 - 3,483,457
Charges for Services 1,211,177 - 19,770 44,829 1,275,776
Special Assessments - 32,972 - - 32,972
Investment Earnings 17,383 30,298 7,500 5,934 61,115
Miscellaneous 411,720 - 1,127,116 - 1,538,836
Total Revenues 6,622,401 882,836 3,492,875 50,763 11,048,875
EXPENDITURES:
Current:
General Government - - 3,000 - 3,000
Security of Persons & Property 711,141 - - - 711,141
Transportation 3,516,828 - - - 3,516,828
Economic Environment 829,114 - - - 829,114
Cultural and Recreation - 625 - - 625
Debt Service
Principal - 917,866 - - 917,866
Interest - 1,721,509 - - 1,721,509
Capital Outlay - - 8,423,054 - 8,423,054
Total Expenditures 5,057,083 2,640,000 8,426,054 - 16,123,137
Excess (Deficiency) of Revenues
Over (Under) Expenditures 1,565,318 (1,757,164) (4,933,179) 50,763 (5,074,262)
OTHER FINANCING SOURCES (USES):
Transfers In (Note 5)150,000 1,679,805 2,098,950 - 3,928,755
Transfers Out (Note 5)(1,448,591) (10,000) - (31,300) (1,489,891)
Total Other Financing Sources (Uses)(1,298,591) 1,669,805 2,098,950 (31,300) 2,438,864
Net Change in Fund Balances 266,727 (87,359) (2,834,229) 19,463 (2,635,398)
Fund Balances - Beginning 7,987,542 187,988 5,464,680 1,537,107 15,177,317
Fund Balances - Ending 8,254,269$ 100,629$ 2,630,451$ 1,556,570$ 12,541,919$
City of Auburn, Washington
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
NON-MAJOR GOVERNMENT FUNDS
For the Year Ended December 31, 2011
City of Auburn: 2011 CAFR Fund Financial Statements and Schedules
104
City of Auburn: 2011 CAFR Fund Financial Statements and Schedules
105
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 nine 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.
Mitigation Fees
Accounts for the receipt of contracted mitigation fees for streets and fire service.
City of Auburn: 2011 CAFR Fund Financial Statements and Schedules
106
Page 1 of 2
Hotel/Arterial Local
Local Motel Street Drug Law
Streets Tax Preservation Forfeiture Enforcement
ASSETS:
Cash and Cash Equivalents 1,990,703$ 99,858$ 1,016,802$ 1,141,413$ -$
Due From Other Governmental Units - - - 17,408 -
Prepaids - 4,320 - - -
Total Assets 1,990,703$ 104,178$ 1,359,544$ 1,158,821$ -$
LIABILITIES AND FUND BALANCES:
Liabilities:
Current Payables 5,623$ 3,846$ 55,175$ 210,202$ -$
Total Liabilities 5,623 6,446 55,175 210,202 -
Fund Balances:
Nonspendable - 4,320 - - -
Restricted - 93,412 - 948,619 -
Committed 1,830,080 - 1,304,369 - -
Assigned 155,000 - - - -
Total Fund Balances 1,985,080 97,732 1,304,369 948,619 -
Total Liabilities and Fund Balances 1,990,703$ 104,178$ 1,359,544$ 1,158,821$ -$
City of Auburn, Washington
COMBINING BALANCE SHEET
NON-MAJOR SPECIAL REVENUE FUNDS
December 31, 2011
City of Auburn: 2011 CAFR Fund Financial Statements and Schedules
107
Page 2 of 2
Total
Housing Business Nonmajor
Community Recreational Improvement Mitigation Special Revenue
Development Trails Area Fees Funds
25,288$ 15,321$ 27,417$ 4,157,108$ 8,473,910$
71,953 - - - 89,361
- - - - 4,320
97,241$ 15,321$ 27,417$ 4,157,108$ 8,910,333$
53,844$ -$ 5,818$ 318,956$ 653,464$
53,844 - 5,818 318,956 656,064
- - - - 4,320
43,397 15,321 21,599 3,783,804 4,906,152
- - - - 3,134,449
- - - 54,348 209,348
43,397 15,321 21,599 3,838,152 8,254,269
97,241$ 15,321$ 27,417$ 4,157,108$ 8,910,333$
City of Auburn: 2011 CAFR Fund Financial Statements and Schedules
108
Page 1 of 2
Hotel/Arterial Local Law
Local Motel Street Drug Enforcement
Streets Tax Preservation Forfeiture Grant
REVENUES:
Taxes:
Property 2,000,000$ -$ -$ -$ -$
Interfund Utility - - 421,185 - -
Utility - - 1,713,234 - -
Excise - 65,058 - - -
Other - - - - -
Intergovernmental - - - 57,589 -
Charges for Services - 22,617 - - -
Investment Earnings 4,567 175 2,366 1,971 -
Miscellaneous - - - 411,720 -
Total Revenues 2,004,567 87,850 2,136,785 471,280 -
EXPENDITURES:
Current:
Security of Persons & Property - - - 448,841 -
Transportation 2,232,062 - 1,284,766 - -
Economic Environment - 87,970 - - -
Total Expenditures 2,232,062 87,970 1,284,766 448,841 -
Excess (Deficiency) of Revenues
Over (Under) Expenditures (227,495) (120) 852,019 22,439 -
OTHER FINANCING SOURCES (USES):
Transfers In (Note 5)150,000 - - - -
Transfers Out (Note 5)- - - - (15,439)
Total Other Financing Sources (Uses)150,000 - - - (15,439)
Net Change in Fund Balances (77,495) (120) 852,019 22,439 (15,439)
Fund Balances - Beginning 2,062,575 97,852 452,350 926,180 15,439
Fund Balances - Ending 1,985,080$ 97,732$ 1,304,369$ 948,619$ -$
NON-MAJOR SPECIAL REVENUE FUNDS
For the Year Ended December 31, 2011
City of Auburn, Washington
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
City of Auburn: 2011 CAFR Fund Financial Statements and Schedules
109
Page 2 of 2
Total
Housing Business Nonmajor
Community Recreational Improvement Mitigation Special Revenue
Development Trails Area Fees Funds
-$ -$ -$ -$ 2,000,000$
- - - - 421,185
- - - - 1,713,234
- - - - 65,058
- - 58,678 - 58,678
659,277 7,100 - - 723,966
- - - 1,188,560 1,211,177
- 27 69 8,208 17,383
- - - 411,720
659,277 7,127 58,747 1,196,768 6,622,401
- - - 262,300 711,141
- - - - 3,516,828
659,179 - 81,965 - 829,114
659,179 - 81,965 262,300 5,057,083
98 7,127 (23,218) 934,468 1,565,318
- - - - 150,000
- - - (1,433,152) (1,448,591)
- - - (1,433,152) (1,298,591)
98 7,127 (23,218) (498,684) 266,727
43,299 8,194 44,817 4,336,836 7,987,542
43,397$ 15,321$ 21,599$ 3,838,152$ 8,254,269$
City of Auburn: 2011 CAFR Fund Financial Statements and Schedules
110
Variance with
Final Final Budget
Original Adopted Actual Positive
(GAAP Basis)(GAAP Basis)Results (Negative)
REVENUES:
Taxes:
Property 2,000,000$ 2,000,000$ 2,000,000$ -$
Investment Earnings 5,000 5,000 4,567 (433)
Total Revenues 2,005,000 2,005,000 2,004,567 (433)
EXPENDITURES:
Transportation 2,000,000 3,399,040 2,232,062 1,166,978
Total Expenditures 2,000,000 3,399,040 2,232,062 1,166,978
Excess (Deficiency) of Revenues
Over (Under) Expenditures 5,000 (1,394,040) (227,495) 1,166,545
OTHER FINANCING SOURCES (USES):
Transfers In (Note 5)150,000 150,000 150,000 -
Total Other Financing Sources (Uses)150,000 150,000 150,000 -
Net Change in Fund Balances 155,000 (1,244,040) (77,495) 1,166,545
Fund Balances - Beginning 940,806 2,062,575 2,062,575 -
Fund Balances - Ending 1,095,806$ 818,535$ 1,985,080$ 1,166,545$
Budget Amounts
For the Year Ended December 31, 2011
City of Auburn, Washington
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
LOCAL STREETS SPECIAL REVENUE FUND
City of Auburn: 2011 CAFR Fund Financial Statements and Schedules
111
Variance with
Final Final Budget
Original Adopted Actual Positive
(GAAP Basis)(GAAP Basis)Results (Negative)
REVENUES:
Taxes:
Escise 60,000$ 60,000$ 65,058$ 5,058$
Investment Earnings 300 300 175 (125)
Total Revenues 106,600 106,600 87,850 (18,750)
EXPENDITURES:
Economic Environment 209,000 194,000 87,970 106,030
Total Expenditures 209,000 194,000 87,970 106,030
Excess (Deficiency) of Revenues
Over (Under) Expenditures (102,400) (87,400) (120) 87,280
Net Change in fund Balances (102,400) (87,400) (120) 87,280
Fund Balances - Beginning 118,126 97,852 97,852 -
Fund Balances - Ending 15,726$ 10,452$ 97,732$ 87,280$
Budget Amounts
For the Year Ended December 31, 2011
City of Auburn, Washington
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
HOTEL/MOTEL TAX SPECIAL REVENUE FUND
City of Auburn: 2011 CAFR Fund Financial Statements and Schedules
112
Variance with
Final Final Budget
Original Adopted Actual Positive
(GAAP Basis)(GAAP Basis)Results (Negative)
REVENUES:
Taxes:
Interfund Utility 400,200$ 400,200$ 421,185$ 20,985$
Utility 1,099,800 1,099,800 1,713,234 613,434
Investment Earnings 1,500 1,500 2,366 866
Total Revenues 1,501,500 1,501,500 2,136,785 635,285
EXPENDITURES:
Transportation 1,500,000 1,506,000 1,284,766 221,234
Total Expenditures 1,500,000 1,506,000 1,284,766 221,234
Excess (Deficiency) of Revenues
Over (Under) Expenditures 1,500 (4,500) 852,019 856,519
Net Change in Fund Balances 1,500 (4,500) 852,019 856,519
Fund Balances - Beginning 33,589 452,350 452,350 -
Fund Balances - Ending 35,089$ 447,850$ 1,304,369$ 856,519$
Budget Amounts
For the Year Ended December 31, 2011
City of Auburn, Washington
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
ARTERIAL STREET PRESERVATION SPECIAL REVENUE FUND
City of Auburn: 2011 CAFR Fund Financial Statements and Schedules
113
Variance with
Final Final Budget
Original Adopted Actual Positive
(GAAP Basis)(GAAP Basis)Results (Negative)
REVENUES:
Intergovernmental 46,100$ 46,100$ 57,589$ 11,489$
Investment Earnings 250,000 250,000 1,971 (248,029)
Miscellaneous 2,600 2,600 411,720 409,120
Total Revenues 298,700 298,700 471,280 172,580
EXPENDITURES:
Security of Persons & Property 496,010 543,010 448,841 94,169
Total Expenditures 496,010 543,010 448,841 94,169
Excess (Deficiency of Revenues
Over (Under) Expenditures (197,310) (244,310) 22,439 266,749
Net Change in Fund Balances (197,310) (244,310) 22,439 266,749
Fund Balances - Beginning 710,547 926,180 926,180 -
Fund Balances - Ending 513,237$ 681,870$ 948,619$ 266,749$
Budget Amounts
For the Year Ended December 31, 2011
City of Auburn, Washington
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
DRUG FORFEITURE SPECIAL REVENUE FUND
City of Auburn: 2011 CAFR Fund Financial Statements and Schedules
114
Variance with
Final Final Budget
Original Adopted Actual Positive
(GAAP Basis)(GAAP Basis)Results (Negative)
OTHER FINANCING SOURCES (USES):
Transfers Out (Note 5)(16,468)$ (15,439)$ (15,439)$ -$
Total Other Financing Sources (Uses)(16,468) (15,439) (15,439) -
Net Change in Fund Balances (16,468) (15,439) (15,439) -
Fund Balances - Beginning 16,468 15,439 15,439 -
Fund Balances - Ending -$ -$ -$ -$
Budget Amounts
For the Year Ended December 31, 2011
City of Auburn, Washington
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
LOCAL LAW ENFORCEMENT GRANT SPECIAL REVENUE FUND
City of Auburn: 2011 CAFR Fund Financial Statements and Schedules
115
Variance with
Final Final Budget
Original Adopted Actual Positive
(GAAP Basis)(GAAP Basis)Results (Negative)
REVENUES:
Intergovernmental 510,000$ 650,400$ 659,277$ 8,877$
Total Revenues 510,000 650,400 659,277 8,877
EXPENDITURES:
Economic Environment 542,410 681,330 659,179 22,151
Total Expenditures 542,410 681,330 659,179 22,151
Excess (Deficiency) of Revenues
Over (Under) Expenditures (32,410) (30,930) 98 31,028
Net Change in Fund Balances (32,410) (30,930) 98 31,028
Fund Balances - Beginning 99,286 43,299 43,299 -
Fund Balances - Ending 66,876$ 12,369$ 43,397$ 31,028$
Budget Amounts
For the Year Ended December 31, 2011
City of Auburn, Washington
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
HOUSING & COMMUNITY DEVELOPMENT SPECIAL REVENUE FUND
City of Auburn: 2011 CAFR Fund Financial Statements and Schedules
116
Variance with
Final Final Budget
Original Adopted Actual Positive
(GAAP Basis)(GAAP Basis)Results (Negative)
REVENUES:
Investment Earnings 100$ 100$ 27$ (73)$
Total Revenues 100 7,200 7,127 (73)
Excess (Deficiency) of Revenues
Over (Under) Expenditures 100 7,200 7,127 (73)
OTHER FINANCING SOURCES (USES):
Transfers In (Note 5)7,100 - - -
Total Other Financing Sources (Uses)7,100 - - -
Net Change in Fund Balances 7,200 7,200 7,127 (73)
Fund Balances - Beginning 8,177 8,194 8,194 -
Fund Balances - Ending 15,377$ 15,394$ 15,321$ (73)$
Budget Amounts
For the Year Ended December 31, 2011
City of Auburn, Washington
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
RECREATION TRAILS SPECIAL REVENUE FUND
City of Auburn: 2011 CAFR Fund Financial Statements and Schedules
117
Variance with
Final Final Budget
Original Adopted Actual Positive
(GAAP Basis)(GAAP Basis)Results (Negative)
REVENUES:
Taxes:
Other 53,000$ 43,752$ 58,678$ 14,926$
Investment Earnings 100 100 69 (31)
Total Revenues 53,100 43,852 58,747 14,895
EXPENDITURES:
Economic Environment 54,000 85,000 81,965 3,035
Total Expenditures 54,000 85,000 81,965 3,035
Excess (Deficiency) of Revenues
Over (Under) Expenditures (900) (41,148) (23,218) 17,930
Net Change in Fund Balances (900) (41,148) (23,218) 17,930
Fund Balances - Beginning 44,396 44,817 44,817 -
Fund Balances - Ending 43,496$ 3,669$ 21,599$ 17,930$
Budget Amounts
For the Year Ended December 31, 2011
City of Auburn, Washington
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
BUSINESS IMPROVEMENT AREA SPECIAL REVENUE FUND
City of Auburn: 2011 CAFR Fund Financial Statements and Schedules
118
Variance with
Final Final Budget
Original Adopted Actual Positive
(GAAP Basis)(GAAP Basis)Results (Negative)
REVENUES:
Investment Earnings 23,000$ 23,000$ 28,738$ 5,738$
Total Revenues 23,000 23,000 28,738 5,738
Excess (Deficiency) of Revenues
Over (Under) Expenditures 23,000 23,000 28,738 5,738
OTHER FINANCING SOURCES (USES):
Transfers Out (Note 5)(44,900) (723,350) (723,345) 5
Total Other Financing Sources (Uses)(44,900) (723,350) (723,345) 5
Net Change in Fund Balances (21,900) (700,350) (694,607) 5,743
Fund Balances - Beginning 5,623,464 5,732,032 5,732,032 -
Fund Balances - Ending 5,601,564$ 5,031,682$ 5,037,425$ 5,743$
RECONCILIATION OF PERSPECTIVE DIFFERENCE BETWEEN BUDGETARY INFORMATION AND
GENERALLY ACCEPTED ACCOUNTING PRINCIPLES (GAAP):
The Cumulative Reserve Fund is combined with
the General Fund for purposes of GASB Statement 54 (5,037,425)
Fund Balance - Ending (GAAP)-$
Budget Amounts
For the Year Ended December 31, 2011
City of Auburn, Washington
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
CUMULATIVE RESERVE SPECIAL REVENUE FUND
City of Auburn: 2011 CAFR Fund Financial Statements and Schedules
119
Variance with
Final Final Budget
Original Adopted Actual Positive
(GAAP Basis)(GAAP Basis)Results (Negative)
REVENUES:
Charges for Services 880,000$ 880,000$ 1,188,560$ 308,560$
Investment Earnings 20,000 20,000 8,208 (11,792)
Total Revenues 900,000 900,000 1,196,768 296,768
EXPENDITURES:
Security of Person & Property 50,000 262,300 262,300 -
Total Expenditures 50,000 262,300 262,300 -
Excess (Deficiency) of Revenues
Over (Under) Expenditures 850,000 637,700 934,468 296,768
OTHER FINANCING SOURCES (USES):
Transfers Out (Note 5)(2,629,200) (3,230,370) (1,433,152) 1,797,218
Total Other Financing Sources (Uses)(2,629,200) (3,230,370) (1,433,152) 1,797,218
Net Change in Fund Balances (1,779,200) (2,592,670) (498,684) 2,093,986
Fund Balances - Beginning 3,444,973 4,336,836 4,336,836 -
Fund Balances - Ending 1,665,773$ 1,744,166$ 3,838,152$ 2,093,986$
Budget Amounts
For the Year Ended December 31, 2011
City of Auburn, Washington
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
MITIGATION SPECIAL REVENUE FUND
City of Auburn: 2011 CAFR Fund Financial Statements and Schedules
120
City of Auburn: 2011 CAFR Fund Financial Statements and Schedules
121
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.
City of Auburn: 2011 CAFR Fund Financial Statements and Schedules
122
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 45,754$ 158$ -$ 54,387$ 330$ 100,629$
Receivables:
Special Assessments - - - - 577,602 577,602
Total Assets 45,754$ 158$ -$ 54,387$ 577,932$ 678,231$
LIABILITIES AND FUND BALANCES:
Liabilities:
Deferred Revenue -$ -$ -$ -$ 577,602$ 577,602$
Total Liabilities - - - - 577,602 577,602
Fund Balances:
Restricted - - 54,387 330 54,717
Assigned 45,754 158 - - 45,912
Total Fund Balances 45,754 158 - 54,387 330 100,629
Total Liabilities and Fund Balances 45,754$ 158$ -$ 54,387$ 577,932$ 678,231$
City of Auburn, Washington
COMBINING BALANCE SHEETNON-MAJOR DEBT SERVICE FUNDSDecember 31, 2011
City of Auburn: 2011 CAFR Fund Financial Statements and Schedules
123
Total
GO Library 2010 2010 Nonmajor
Refunding A & B C & D Local L I D Special Debt Service
Bond Debt Annex Revitalization Guarantee Assessments Funds
REVENUES:
Taxes:
Special Assessments -$ -$ -$ -$ 32,972$ 32,972$
Intergovernmental - 406,321 131,116 - - 537,437
Investment Earnings 321 - 316 100 29,561 30,298
Total Revenues 321 406,321 413,561 100 62,533 882,836
EXPENDITURES:
Culture and Recreation 625 - - - - 625
Debt Service
Principal 215,000 475,000 195,000 - 32,866 917,866
Interest 71,200 1,220,567 399,267 - 30,475 1,721,509
Total Expenditures 286,825 1,695,567 594,267 - 63,341 2,640,000
Excess (Deficiency) of Revenues
Over (Under) Expenditures (286,504) (1,289,246) (180,706) 100 (808) (1,757,164)
OTHER FINANCING SOURCES (USES):
Transfers In (Note 5)286,200 1,289,300 104,305 - - 1,679,805
Transfers Out (Note 5)- - - (10,000) - (10,000)
Total Other Financing Sources (Uses)286,200 1,289,300 104,305 (10,000) - 1,669,805
Net Change in Fund Balances (304) 54 (76,401) (9,900) (808) (87,359)
Fund Balances - Beginning 46,058 104 76,401 64,287 1,138 187,988
Fund Balances - Ending 45,754$ 158$ -$ 54,387$ 330$ 100,629$
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, 2011
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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.
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Municipal Nonmajor
Park Local Capital Project
Construction Revitalization Funds
ASSETS:
Cash and Cash Equivalents 662,266$ 371,957$ 1,034,223$
Due From Other Governmental Units 7,310 1,809,975 1,817,285
Total Assets 975,929$ 2,181,932$ 3,157,861$
LIABILITIES AND FUND BALANCES:
Liabilities:
Current Payables 191,162$ 336,248$ 527,410$
Total Liabilities 191,162 336,248 527,410
Fund Balances:
Restricted 677,166 1,473,727 2,150,893
Assigned 107,601 371,957 479,558
Total Fund Balances 784,767 1,845,684 2,630,451
Total Liabilities and Fund Balances 975,929$ 2,181,932$ 3,157,861$
City of Auburn, Washington
COMBINING BALANCE SHEET
CAPITAL PROJECT FUND
December 31, 2011
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Municipal Nonmajor
Park Local Capital Project
Construction Revitalization Funds
REVENUES:
Taxes:
Property 116,435$ -$ 116,435$
Intergovernmental 412,079 1,809,975 2,222,054
Charges for Services 19,770 - 19,770
Investment Earnings 687 6,813 7,500
Miscellaneous 1,127,116 - 1,127,116
Total Revenues 1,676,087 1,816,788 3,492,875
EXPENDITURES:
Capital Outlay 2,955,353 5,467,701 8,423,054
Total Expenditures 2,955,353 5,470,701 8,426,054
Excess (Deficiency) of Revenues
Over (Under) Expenditures (1,279,266) (3,653,913) (4,933,179)
OTHER FINANCING SOURCES (USES):
Transfers In (Note 5)1,716,950 382,000 2,098,950
Total Other Financing Sources (Uses)1,716,950 382,000 2,098,950
Net Change in Fund Balances 437,684 (3,271,913) (2,834,229)
Fund Balances - Beginning 347,083 5,117,597 5,464,680
Fund Balances - Ending 784,767$ 1,845,684$ 2,630,451$
City of Auburn, Washington
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
CAPITAL PROJECT FUND
For the Year Ended December 31, 2011
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NON-MAJOR GOVERNMENTAL FUNDS
PERMANENT FUNDS
Permanent funds are used to report resources that are legally restricted to the extent that
only earnings, and not principal, may be used for purposes that support City programs that
are for the benefit of the City or its citizens. Auburn has one permanent fund.
The Cemetery Endowed Care Fund
Accounts for non-expendable investments held by the City's trustee. The interest income
from investments is available for use by the cemetery fund for capital enhancement and
maintenance.
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Cemetery
Endowed
Care
ASSETS:
Cash and Cash Equivalents
Non-Expendable Trust 1,556,570$
Total Assets 1,556,570$
FUND BALANCES:
Nonspendable 1,449,220$
Assigned 107,350
Total Fund Balances 1,556,570
Total Liabilities and Fund Balances 1,556,570$
City of Auburn, Washington
BALANCE SHEET
PERMANENT FUND
December 31, 2011
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Cemetery
Endowed
Care
REVENUES:
Increase to Endowment from Lot Sales 44,829$
Investment Earnings 5,934
Total Revenues 50,763
Excess (Deficiency) of Revenues
Over (Under) Expenditures 50,763
OTHER FINANCING SOURCES (USES):
Transfers Out (Note 5)(31,300)
Total Other Financing Sources (Uses)(31,300)
Net Change in Fund Balance 19,463
Fund Balance - Beginning 1,537,107
Fund Balance - Ending 1,556,570$
For the Year Ended December 31, 2011
City of Auburn, Washington
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
PERMANENT FUND
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NON-MAJOR PROPRIETARY FUNDS
ENTERPRISE FUNDS
The City's enterprise funds are used to account for operations that are financed and
operated in a manner similar to private business operations. The goods and services these
funds provide to the general public are primarily financed by service charges. Enterprise
funds are self-supporting and use the accrual method of accounting. Auburn has two non-
major enterprise funds.
The Airport Fund
Provides accounting of the activities of the Auburn Municipal Airport. Sources of income
for the fund are leases, rentals, fuel charges, investment interest, and grant funding as
available.
The Cemetery Fund
Accounts for Mountain View Cemetery's operations.
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Total
Nonmajor
Proprietary
Airport Cemetery Funds
ASSETS:
Current Assets:
Cash and Cash Equivalents 1,082,099$ 114,401$ 1,196,500$
Restricted Cash:
Customer Deposits 63,856 - 63,856
Inventories - 10,213 10,213
Total Current Assets 1,145,955 124,614 1,270,569
Noncurrent Assets:
Long-Term Contracts and Notes - 2,099 2,099
Capital Assets:
Land 3,653,343 342,836 3,996,179
Buildings and Equipments 2,555,195 1,048,109 3,603,304
Improvements Other Than Buildings 8,547,033 1,137,010 9,684,043
Construction in Progress 16,147 - 16,147
Less: Accumulated Depreciation (5,006,879) (1,257,442) (6,264,321)
Total Capital Assets (Net of A/D)9,764,839 1,270,513 11,035,352
Total Noncurrent Assets 9,764,839 1,272,612 11,037,451
Total Assets 10,910,794 1,397,226 12,308,020
LIABILITIES:
Current Liabilities:
Current Payables 14,885 52,795 67,680
Employee Leave Benefits - Current 1,955 20,798 22,753
General Obligation Bonds Payable - Current 105,000 - 105,000
Customer Deposits 63,856 - 63,856
Total Current Liabilities 185,696 73,593 259,289
Noncurrent Liabilities:
Deferred Revenue - 2,099 2,099
Employee Leave Benefits 887 9,441 10,328
General Obligation Bonds Payable 993,053 497,384 1,490,437
Total Noncurrent Liabilities 993,940 508,924 1,502,864
Total Liabilities 1,179,636 582,517 1,762,153
NET ASSETS:
Invested in Capital Assets, Net of Related Debt 8,666,786 773,129 9,439,915
Unrestricted 1,064,372 41,580 1,105,952
Total Net Assets 9,731,158$ 814,709$ 10,545,867$
City of Auburn, Washington
COMBINING STATEMENT OF NET ASSETS
NON-MAJOR ENTERPRISE FUNDS
December 31, 2011
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Total
Nonmajor
Enterprise
Airport Cemetery Funds
OPERATING REVENUES:
Charges for Services 25,983$ 751,883$ 777,866$
Interest - 1,420 1,420
Other Operating Revenue 608,287 - 608,287
Total Operating Revenues 634,270 753,303 1,387,573
OPERATING EXPENSES:
Operations & Maintenance 30,909 668,494 699,403
Administration 488,565 276,752 765,317
Depreciation/Amortization 393,078 57,999 451,077
Other Operating Expenses 188 10,800 10,988
Total Operating Expenses 912,740 1,014,045 1,926,785
Operating Income (Loss)(278,470) (260,742) (539,212)
NON-OPERATING REVENUE (EXPENSE):
Interest Revenue 2,131 114 2,245
Other Non-Operating Revenues 364,397 30 364,427
Interest Revenue (Expense)(62,218) (21,773) (83,991)
Total Non-Operating Revenue (Expense)304,310 (21,629) 282,681
Income (Loss) Before Contributions & Transfers 25,840 (282,371) (256,531)
Transfers In (Note 5)- 231,300 231,300
Change in Net Assets 25,840 (51,071) (25,231)
Total Net Assets - Beginning 9,705,318 865,780 10,571,098
Total Net Assets - Ending 9,731,158$ 814,709$ 10,545,867$
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, 2011
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Page 1 of 2
Total
Non Major
Enterprise
Airport Cemetery Funds
CASH FLOWS FROM OPERATING ACTIVITIES:Cash Received From Users 632,623$ 753,303$ 1,385,926$
Cash Paid to Suppliers (499,083) (262,665) (761,748)
Cash Paid for Taxes (188) (10,800) (10,988)
Cash Paid for Inventory - (2,454) (2,454)
Cash Paid to Employees (24,038) (667,595) (691,633)
Net Cash Provided (Used) By Operating Activities 109,314 (190,211) (80,897)
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:
Other Non-Operating Gain 30,235 - 30,235
Transfers from Other Funds - 231,300 231,300
Net Cash Provided (Used) by Non-Capital Financing Activities 30,235 231,300 261,535
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES:
Purchase of Capital Assets (328,452) (64,404) (392,856) Capital Grant 334,162 - 334,162
Principal Payment on Debt (100,000) - (100,000)
Interest Payment on Debt (54,475) (22,268) (76,743)
Net Cash Provided (Used) for Capital and Related Financing Activities (148,765) (86,672) (235,437)
CASH FLOW FROM INVESTING ACTIVITIES:
Interest Received 2,131 144 2,275 Net Cash Provided (Used) in Investing Activities 2,131 144 2,275
Net Increase (Decrease) in Cash and Cash Equivalents (7,085) (45,439) (52,524)
Cash and Cash Equivalents - Beginning of Year 1,153,040 159,840 1,312,880
Cash and Cash Equivalents - End of Year 1,145,955$ 114,401$ 1,260,356$
CASH AT END OF YEAR CONSISTS OF:
Cash and Cash Equivalents 1,082,099 114,401 1,196,500
Restricted Cash - Customer Deposits 63,856 - 63,856
Total Cash 1,145,955$ 114,401$ 1,260,356$
City of Auburn, Washington
COMBINING STATEMENT OF CASH FLOWS
NON-MAJOR ENTERPRISE FUNDS
For the Fiscal Year Ended December 31, 2011
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Page 2 of 2
Total
Non MajorEnterprise
Airport Cemetery Funds
RECONCILIATION OF NET OPERATING INCOME TO NEW CASH
PROVIDED BY OPERATING ACTIVITIES
Operating Income (Loss)(278,470)$ (260,742)$ (539,212)$
ADJUSTMENTS TO RECONCILE OPERATING INCOME TO
NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES:
Depreciation 393,078 57,999 451,077
Asset (Increases) Decreases:Accounts Receivable 3,910 - 3,910
Inventory - (2,454) (2,454)
Liability Increases (Decreases):
Accounts & Vouchers Payable (3,760) 7,907 4,147
Deposits Payable (5,557) - (5,557)
Wages & Benefits Payable 118 1,419 1,537
Compensated Absences Payable (5) 5,660 5,655
Total Adjustments 387,784 70,531 458,315
Net Cash Provided (Used) by Operating Activities 109,314$ (190,211)$ (80,897)$
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, 2011
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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 four 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.
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Information Equipment
Insurance Facilities Services Rental Total
ASSETS:
Current Assets:
Cash and Cash Equivalents 2,184,987$ 1,918,464$ 3,347,131$ 3,845,767$ 11,296,349$
Investments - - - 2,006,120 2,006,120
Customer Accounts - 24,308 - - 24,308
Other Receivables - - - 1,639 1,639
Due From Other Governmental Units - 20,938 111,085 - 132,023
Inventories - - - 118,029 118,029
Total Current Assets 2,184,987 1,963,710 3,458,216 5,971,555 13,578,468
Noncurrent Assets:
Capital Assets:
Buildings and Equipment - - 4,595,515 11,655,962 16,251,477
Improvements Other than Buildings - - - 46,591 46,591
Less: Accumulated Depreciation - - (3,280,022) (7,312,720) (10,592,742)
Total Capital Assets (Net of A/D)- - 1,315,493 4,389,833 5,705,326
Total Noncurrent Assets - - 1,315,493 4,389,833 5,705,326
Total Assets 2,184,987 1,963,710 4,773,709 10,361,388 19,283,794
LIABILITIES:
Current Liabilities:
Current Payables 307 341,261 339,530 178,389 859,487
Employee Leave Benefits - Current - 33,568 57,772 32,381 123,721
Total Current Liabilities 307 378,054 397,302 210,770 986,433
Noncurrent Liabilities
Employee Leave Benefits - 15,237 26,224 14,699 56,160
Total Noncurrent Liabilities - 15,237 26,224 14,699 56,160
Total Liabilities 307 393,291 423,526 225,469 1,042,593
NET ASSETS:
Invested in Capital Assets, Net of Related Debt - - 1,315,493 4,389,833 5,705,326
Unrestricted 2,184,680 1,570,419 3,034,690 5,746,086 12,535,875
Total Net Assets 2,184,680$ 1,570,419$ 4,350,183$ 10,135,919$ 18,241,201$
City of Auburn, Washington
COMBINING STATEMENTS OF NET ASSETSINTERNAL SERVICE FUNDSDecember 31, 2011
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Information Equipment
Insurance Facilities Services Rental Total
OPERATING REVENUES:
Charges for Services -$ 3,774,163$ 4,163,661$ 2,851,035$ 10,788,859$
Total Operating Revenues - 3,874,892 4,310,831 2,851,035 11,036,758
OPERATING EXPENSES:
Operations & Maintenance - 2,390,353 3,737,502 1,374,528 7,502,383
Administration 185,373 - 246,600 717,650 1,149,623
Depreciation/Amortization - - 466,653 809,983 1,276,636
Total Operating Expenses 185,373 2,390,353 4,450,755 2,902,161 9,928,642
Operating Income (Loss)(185,373) 1,484,539 (139,924) (51,126) 1,108,116
NON-OPERATING REVENUE (EXPENSE):
Interest Revenue 3,221 2,663 7,421 28,618 41,923
Other Non-Operating Revenues - 66,231 63,764 49,238 179,233
Gain (Loss) on Sale of Capital Assets - - - (6,316) (6,316)
Total Non-Operating Revenue (Expense)3,221 68,894 71,185 71,540 214,840
Income (Loss) Before Contributions (182,152) 1,553,433 (68,739) 20,414 1,322,956
Capital Contributions - - - 10,537 10,537
Change in Net Assets (182,152) 908,733 (568,739) (476,049) (318,207)
Total Net Assets - Beginning 2,366,832 661,686 4,918,922 10,611,968 18,559,408
Total Net Assets - Ending 2,184,680$ 1,570,419$ 4,350,183$ 10,135,919$ 18,241,201$
City of Auburn, Washington
COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET ASSETS
INTERNAL SERVICE FUNDS
For the Year Ended December 31, 2011
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Page 1 of 2
Information Equipment
Insurance Facilities Services Rental Total
CASH FLOWS FROM OPERATING ACTIVITIES:
Cash Received From Users -$ 3,881,062$ 4,294,030$ 2,877,190$ 11,052,282$
Cash Paid to Suppliers (181,579) (1,410,650) (2,274,940) (1,668,491) (5,535,660)
Cash Paid for Taxes (3,977) - - - (3,977) Cash Paid for Inventory - - - 15,264 15,264 Cash Paid to Employees - (923,075) (1,706,819) (515,171) (3,145,065) Net Cash Provided (Used) By Operating Activities (185,556) 1,547,337 312,271 708,792 2,382,844
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:
Operating Grant Received - 44,208 (92,260) - (48,052) Other Non-Operating Gain - - 530 13,422 13,952 Transfers Out - (644,700) (500,000) (507,000) (1,651,700) Net Cash Provided (Used) by Non-Capital Financing Activities - (600,492) (591,730) (493,578) (1,685,800)
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES:
Proceeds from Sale of Equipment - - - 38,945 38,945 Purchase of Capital Assets - - (737,104) (405,109) (1,142,213) Capital Grant - - 63,234 - 63,234 Proceeds from Insurance Settlement - 22,023 - 35,816 57,839 Net Cash Provided (Used) for Capital and Related Financing Activities - 22,023 (673,870) (330,348) (982,195)
CASH FLOW FROM INVESTING ACTIVITIES:Purchase of Investments - - - (2,000,000) (2,000,000) Interest Received 3,221 2,663 7,421 20,859 34,164 Net Cash Provided (Used) in Investing Activities 3,221 2,663 7,421 (1,979,141) (1,965,836)
Net Increase (Decrease) in Cash and Cash Equivalents (182,335) 971,531 (945,908) (2,094,275) (2,250,987)
Cash and Cash Equivalents - Beginning of Year 2,367,322 946,933 4,293,039 5,940,042 13,547,336
Cash and Cash Equivalents - End of Year 2,184,987$ 1,918,464$ 3,347,131$ 3,845,767$ 11,296,349$
CASH AT END OF YEAR CONSISTS OF:
Cash and Cash Equivalents 2,184,987 1,918,464 3,347,131 3,845,767 11,296,349
Total Cash 2,184,987$ 1,918,464$ 3,347,131$ 3,845,767$ 11,296,349$
City of Auburn, Washington
COMBINING STATEMENT OF CASH FLOWS
INTERNAL SERVICE FUNDS
For the Fiscal Year Ended December 31, 2011
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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)(185,373)$ 1,484,539$ (139,924)$ (51,126)$ 1,108,116$
ADJUSTMENTS TO RECONCILE OPERATING INCOME TO
NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES:
Depreciation - - 466,653 809,983 1,276,636
Asset (Increases) Decreases:
Accounts Receivable - 7,970 (16,801) 26,155 17,324
Inventory - - - 15,264 15,264
Liability Increases (Decreases):
Accounts & Vouchers Payable (183) 53,741 (14,486) (100,142) (61,070)
Deposits Payable - (1,800) - - (1,800)
Wages & Benefits Payable - 2,315 8,747 5,237 16,299
Compensated Absences Payable - 572 8,082 3,421 12,075
Total Adjustments (183) 62,798 452,195 759,918 1,274,728
Net Cash Provided (Used) by Operating Activities (185,556)$ 1,547,337$ 312,271$ 708,792$ 2,382,844$
SCHEDULE OF NONCASH INVESTING, CAPITAL AND
FINANCING ACTIVITIES
Capital Assets Acquired by Contributed Capital Increase (Decrease)- - - 10,537 10,537
Total Non Cash Investing, Capital and Financing Activities -$ -$ -$ 10,537$ 10,537$
City of Auburn, Washington
COMBINING STATEMENT OF CASH FLOWS
INTERNAL SERVICE FUNDS
For the Fiscal Year Ended December 31, 2011
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145
AGENCY FUNDS
The agency fund accounts for monies over which the City is strictly a short-term custodian.
Agency funds typically involve only the receipt, temporary investment, and remittance of
fiduciary resources to individuals, private organizations, or other governments.
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Balance Balance
1/1/2011 Additions Deductions 12/31/2011
ASSETS:
Cash and Cash Equivalents 1,400,069$ 3,569,556$ 3,521,256$ 1,448,369$
Other Current Assets 6,582 212,815 193,375 26,022
Due from Other Governments 70,884 - 70,884 -
Total Assets 1,477,535$ 3,782,371$ 3,785,515$ 1,474,391$
LIABILITIES:
Due to Other Government Units 1,477,535 5,221,537 5,224,681 1,474,391
Total Liabilities 1,477,535$ 5,221,537$ 5,224,681$ 1,474,391$
City of Auburn, Washington
STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
AGENCY FUND
For the Fiscal Year Ended December 31, 2011
City of Auburn: 2011 CAFR Statistical Section
147
City of Auburn
STATISTICAL SECTION
December 31, 2011
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 components ............................................................................... 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-sales 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 .................................................................. 159
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
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148
2003 2004 2005 2006 2007 2008 2009 2010 2011
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$ 340,941,112$
Restricted 23,384,709 25,615,116 23,442,309 26,839,342 24,519,024 28,965,599 12,741,566 15,180,467 14,230,963
Unrestricted 29,547,005 28,490,736 24,095,336 24,148,157 26,774,107 25,955,501 43,754,879 46,734,364 45,250,090 Total governmental activities net assets 219,988,976 226,027,225 241,658,877 251,801,562 263,904,363 358,485,448 371,188,427 382,421,532 400,422,165
Business-type activities:
Invested in capital assets, net of related debt 104,513,351 106,783,634 115,137,273 125,265,152 130,515,163 144,626,496 150,621,492 152,343,987 166,289,542
Restricted 1,919,515 1,969,809 2,238,611 6,987,485 1,227,395 933,914 2,071,219 4,107,128 4,153,982
Unrestricted 29,489,320 31,849,110 32,513,576 25,693,517 40,655,261 35,859,489 29,546,169 28,642,334 30,523,974 Total business-type activities net assets 135,922,186 140,602,553 149,889,460 157,946,154 172,397,819 181,419,899 182,238,880 185,093,449 200,967,498
Primary government:
Invested in capital assets, net of related debt 271,570,613 278,705,007 309,258,505 326,079,215 343,126,395 448,190,844 465,313,474 472,850,688 507,230,654
Restricted 25,304,224 27,584,925 25,680,920 33,826,827 25,746,419 29,899,513 14,812,785 19,287,595 18,384,945
Unrestricted 59,036,325 60,339,846 56,608,912 49,841,674 67,429,368 61,814,990 73,301,048 75,376,698 75,774,064
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$ 601,389,663$
Information available for 2003-2011 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 1NET ASSETS BY COMPONENTS
Last Nine Fiscal Years
City of Auburn: 2011 CAFR Statistical Section
149
2003 2004 2005 2006 2007 2008 2009 2010 2011
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$ 8,581,829$
Public safety 23,045,701 26,076,348 28,048,087 29,804,864 33,396,630 28,217,844 25,675,063 25,890,627 27,320,805
Transportation 3,071,195 8,239,795 7,956,286 7,619,268 8,077,154 12,974,861 11,471,167 11,989,752 12,123,615
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 2,327,911
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 7,606,584
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 3,135,984
Health and human services 639,678 597,423 602,726 763,156 416,456 776,224 527,029 578,247 619,172
Interest on long-term debt 322,653 362,051 188,945 203,180 163,916 226,651 408,471 1,809,322 1,685,055
Total governmental activities expenses 41,380,888 49,742,140 51,534,459 54,850,008 61,459,294 62,173,895 59,538,478 60,508,335 63,400,955
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 10,042,879 8,961,736
Sewer 9,949,763 11,207,786 12,044,330 11,878,252 13,974,607 14,479,299 16,569,297 17,794,958 18,852,402
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 6,752,021
Solid waste 8,553,801 8,645,372 9,121,727 9,936,222 10,368,901 10,781,426 11,019,606 9,894,429 9,957,943
Golf course 874,809 973,110 1,032,733 1,020,070 1,576,126 1,958,703 1,909,758 1,844,108 1,903,836
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 2,010,776
Total business-type activities expenses 30,932,812 32,533,692 34,110,630 35,953,099 39,752,824 42,732,085 47,410,702 48,351,960 48,438,714
Total primary government expenses 72,313,700$ 82,275,832$ 85,645,089$ 90,803,107$ 101,212,118$ 104,905,980$ 106,949,180$ 108,860,294$ 111,839,669$
Program revenues
Governmental activities:
Charges for services
General Government 359,398$ 561,013$ 663,309$ 820,585$ 1,126,258$ 2,316,125$ 814,095$ 1,168,574$ 1,010,911$
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 3,867,013
Transportation 570,100 447,036 1,052,110 631,340 1,930,504 1,272,751 1,587,850 960,532 1,042,147
Physical Environment 237,772 365,681 244,766 436,503 576,539 257,780 147,996 86,306 103,590
Culture and Recreation 597,300 654,417 726,753 881,318 1,245,122 917,544 1,048,390 962,558 1,182,688
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 2,294,916
Health and human services - - - - - - 989 449 7,528
Total charges for services 5,208,418 6,893,064 7,965,484 7,875,376 10,049,930 9,077,556 8,108,542 7,849,758 9,508,793
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 1,724,711
Capital grants and contributions 12,336,814 5,192,593 11,162,241 5,174,350 9,213,115 94,905,563 12,806,049 10,702,132 19,730,140
Total governmental activities program revenues 19,505,151 14,264,608 21,573,638 15,764,050 22,187,013 106,550,907 23,915,992 21,574,725 30,963,644
Business-type activities:
Charges for services 31,233,491 31,747,066 32,658,440 36,226,324 38,784,127 39,883,386 42,338,079 43,461,742 45,045,488
Operating grants and contributions 33,384 33,384 54,999 47,961 43,263 55,024 87,454 70,841 116,735
Capital grants and contributions 6,985,742 4,351,278 7,857,856 3,988,202 12,479,500 10,670,660 1,992,259 7,391,111 15,981,735
Total business-type activities program revenues 38,252,617 36,131,728 40,571,295 40,262,487 51,306,890 50,609,070 44,417,792 50,923,694 61,143,958
Total primary government program revenues 57,757,768 50,396,336 62,144,933 56,026,537 73,493,903 157,159,977 68,333,784 72,498,419 92,107,602
Net (expense)/revenue
Governmental activities (21,875,737) (35,477,532) (29,960,821) (39,085,958) (39,272,281) 44,377,012 (35,622,486) (38,933,610) (32,437,311)
Business-type activities 7,319,805 3,598,036 6,460,665 4,309,388 11,554,066 7,876,985 (2,992,910) 2,571,734 12,705,244
Total primary government net expense (14,555,932)$ (31,879,496)$ (23,500,156)$ (34,776,570)$ (27,718,215)$ 52,253,997$ (38,615,396)$ (36,361,876)$ (19,732,067)$
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$ 14,766,470$ 15,204,611$
Retail sales and use tax 13,970,383 15,429,527 16,333,169 17,784,374 18,958,484 17,620,661 14,727,496 15,657,081 16,213,244
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 2,948,297
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 9,049,689
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 1,859,738
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 4,644,909
Investment earnings 769,239 708,259 1,465,102 2,454,694 2,993,174 1,589,837 570,798 379,316 224,593
Miscellaneous 96,168 192,469 564,416 69,037 (406,847) 2,751,495 67,223 214,190 775,969
Transfers (1,225,054) 627,000 194,286 (570,588) (371,660) 427,740 170,605 1,463,444 (483,107)
Total governmental activities 37,074,347 41,345,321 45,592,473 49,228,643 51,375,082 50,204,073 48,325,465 50,166,715 50,437,943
Business-type activities:
Investment earnings 306,862 421,803 895,870 1,574,444 2,098,417 1,242,363 312,618 158,211 101,694
Miscellaneous 545,087 1,287,528 2,124,658 1,602,274 427,522 330,472 3,669,878 1,588,068 2,584,004
Transfers 1,225,054 (627,000) (194,286) 570,588 371,660 (427,740) (170,605) (1,463,444) 483,107
Total business-type activities:2,077,003 1,082,331 2,826,242 3,747,306 2,897,599 1,145,095 3,811,891 282,835 3,168,805
Total primary government 39,151,350$ 42,427,652$ 48,418,715$ 52,975,949$ 54,272,681$ 51,349,168$ 52,137,356$ 50,449,550$ 53,606,748$
Change in net assets
Governmental activities 15,198,610 5,867,789 15,631,652 10,142,685 12,102,801 94,581,085 12,702,979 11,233,105 18,000,632
Business-type activities 9,396,808 4,680,367 9,286,907 8,056,694 14,451,665 9,022,080 818,981 2,854,569 15,874,049 Total primary government 24,595,418$ 10,548,156$ 24,918,559$ 18,199,379$ 26,554,466$ 103,603,165$ 13,521,960$ 14,087,674$ 33,874,681$
Information available for 2003-2011 only due to new accounting and
reporting standards beginning in 2003 with GASB Statement No. 34.
Source: City of Auburn, Finance Department
Last Nine Fiscal Years (1)
(Accrual Basis of Accounting)
(1)
City of Auburn, Washington
SCHEDULE 2CHANGES IN NET ASSETS
City of Auburn: 2011 CAFR Statistical Section
150
2003 2004 2005 2006 2007 2008 2009 2010 2011 (2)
General Fund
Unreserved 18,496,495$ 20,702,250$ 15,938,825$ 14,448,328$ 14,462,720$ 13,071,091$ 13,237,851$ 15,382,354$ -$
Nonspendable
Restricted
Committed
Assigned 7,082,130
Unassigned 14,193,365 Total General Fund 18,496,495 20,702,250 15,938,825 14,448,328 14,462,720 13,071,091 13,237,851 15,382,354 21,275,495
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 10,612,069 8,967,039 10,738,431 13,124,661 14,463,370 15,184,058 15,486,918
Capital Projects Funds 13,930,030 13,852,020 13,111,273 14,727,423 9,873,331 12,990,032 10,422,360 12,589,604
Permanent Funds 233,800 222,020 232,832 188,524 170,983 144,396 153,503 132,717
Total Unreserved 23,940,676 24,686,109 22,311,144 25,654,378 23,168,975 27,597,798 25,759,921 28,209,239
Nonspendable 1,453,540
Restricted 12,781,743
Committed 3,134,449
Assigned 3,120,372
Unassigned -
Total All Other Governmental Funds 25,073,882$ 25,956,878$ 23,686,735$ 27,031,176$ 24,670,008$ 29,105,363$ 27,297,959$ 29,801,617$ 20,490,104$
Information available for 2003-2011 only due to new accounting and
reporting standards beginning 2003 with GASB Statement No. 34.
(2)For FY 2011, GASB Statement No. 54 was implemented. See Note 1E of the Notes to the Basic Financial Statements.
Source: City of Auburn, Finance Department
(Modified Accrual Basis of Accounting)
(1)
City of Auburn, Washington
SCHEDULE 3
FUND BALANCES, GOVERNMENT FUNDSLast Nine Fiscal Years (1)
City of Auburn: 2011 CAFR Statistical Section
151
2003 2004 2005 2006 2007 2008 2009 2010 2011
Revenues
Taxes 35,734,592$ 38,258,799$ 41,467,853$ 44,867,161$ 46,721,651$ 43,781,530$ 42,514,006$ 43,069,695$ 44,812,975$
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 1,769,516
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 16,174,149
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 2,938,815
Fines and forfeits 836,244 845,721 777,241 1,054,201 2,155,120 2,059,771 1,911,034 2,472,411 1,940,326
Special assessments 177,588 127,976 153,627 75,574 52,291 57,402 107,597 43,502 32,972
Investment earnings 300,213 336,442 1,175,258 1,477,368 2,456,291 1,363,375 484,696 386,890 237,056
Miscellaneous 1,102,089 2,452,468 1,247,252 1,865,079 877,473 1,296,349 1,142,428 3,023,589 2,322,580
Total revenues 49,087,942 52,360,661 57,815,026 61,513,716 64,653,484 61,823,581 60,575,902 63,037,699 70,228,389
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 8,310,037
Public safety 22,658,127 25,870,873 27,169,657 29,148,278 33,568,753 26,023,912 25,762,116 24,597,986 27,399,406
Transportation 4,327,863 5,152,344 10,337,587 9,403,147 7,385,929 8,910,967 9,850,579 10,054,434 16,059,156
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 2,290,328
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 3,138,590
Health and human services 639,678 597,423 602,726 763,156 416,456 776,224 527,029 568,911 616,717
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 6,918,623
Capital outlay (2)3,357,827 12,100,966 507,484 3,822,895 7,346,316 4,778,334 30,338,508 8,486,382 8,597,944
Debt service:
Principal 1,162,465 1,018,355 10,582,246 420,631 435,093 456,655 479,661 26,683,671 1,208,512
Interest / other 333,439 248,005 315,960 247,551 203,266 264,997 296,241 1,775,746 1,761,334
Total expenditures 45,898,852 60,367,963 63,709,437 59,248,428 68,255,920 61,248,500 87,961,863 91,680,457 76,300,647
Excess of revenues
over (under) expenditures 3,189,090 (8,007,302) (5,894,411) 2,265,288 (3,602,436) 575,081 (27,385,961) (28,642,758) (6,072,258)
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 7,410,926
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) (6,242,333)
Capital leases - 10,350,000 - - 695,504 17,728 24,549,186 - -
Insurance recoveries - - - - - - 114,607 200,642 154,200
Issuance of debt - - - 142,313 - 360,000 957,278 31,172,273 -
Issuance of refunding bond - - - - - - - 2,150,000 -
Debt Premium - - - - - - - 305,844 -
Payment to escrow agent - refunded bond - - - - - - - (2,235,000) -
Sales of capital assets 26930 119,053 811,353 127,959 - 2,698,677 127,741 - 1,331,092
Total other financing sources (uses)(1,075,470) 11,096,053 (1,139,157) (411,344) 1,255,660 2,468,645 25,745,317 33,290,918 2,653,885
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$ (3,418,373)$
Debt service as a percentage of noncapital 3.56%2.37%19.81%1.39%1.12%1.42%1.54%37.50%5.44%
expenditures
Information available for 2003-2011 only due to new accounting and
reporting standards beginning 2003 with GASB Statement No. 34.
(2)Capital outlay reported in governmental funds is $8,597,944 plus $13,135,954 which is reported for each functional
activity with the other funds results in total capital outlay of $21,733,898 as reported on the Reconciliation of the
Statement of Renevues, Expenditures, and Changes in Fund Balances of Government Funds to the Statement of Activities.
Source: City of Auburn, Finance Department
(Modified Accrual Basisi of Accouting)
(1)
City of Auburn, WashingtonSCHEDULE 4
CHANGES IN FUND BALANCES, GOVERNMENT FUNDSLast Nine Fiscal Years (1)
City of Auburn: 2011 CAFR Statistical Section
152
Fiscal Sales Interfund
Year Property & Use Utility Utility Excise Other Total
2002 11,673,939$ 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
2011 14,683,329 16,213,244 2,948,297 9,049,689 1,859,738 58,678 44,812,975
Change
2002-2011 25.8%19.5%173.3%115.8%124.2%11.1%42.7%
Fiscal year 2002 includes tax revenues collected in the general and special revenue funds.
Fiscal years 2003-2011 include all governmental funds.
Source: City of Auburn, Finance Department
TAX REVENUES BY SOURCE, GOVERNMENT FUNDS
Last Ten Fiscal Years
SCHEDULE 5
City of Auburn, Washington
$0
$5,000
$10,000
$15,000
$20,000
$25,000
$30,000
$35,000
$40,000
$45,000
$50,000
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Th
o
u
s
a
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d
s
Figure 5: Tax Revenues by Source
2002 -2011
Excise & other
Utility
Interfund utility
Sales & use
Property
City of Auburn: 2011 CAFR Statistical Section
153
State Total Total
Fiscal Property Personal Land and Assessed Direct
Year and Other Property Building Value Rate
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
2011 126,415 726,944 6,711,148 7,564,507 1.93
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
$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
$9,000,000
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Figure 6: Assessed Value by Type
2002 -2011
State property
Personal property
Land and building
City of Auburn: 2011 CAFR Statistical Section
154
Page 1 of 2
Item 2002 2003 2004 2005
Assessed and estimated actual values (1)
Estimated and actual value (in thousands)4,019,872$ 4,271,824$ 4,492,179$ 4,676,301$
Assessed value (in thousands)4,019,872 4,271,824 4,492,179 4,676,301
Ratio of assessed to actual 100%100%100%100%
Property tax rates (1)
Direct regular and special
General fund 2.93353$ 2.92857$ 2.87319$ 2.88000$
Debt service funds - - - -
Subtotal 2.93353 2.92857 2.87319 2.88000
Overlapping regular and special (1)
Auburn School District 5.47810$ 5.35720$ 5.34914$ 5.37195$
King County 1.44949 1.34948 1.43146 1.38229
State of Washington 2.98946 2.89680 2.75678 2.68951
Port of Seattle 0.18956 0.25895 0.25402 0.25321
Emergency Medical Services 0.25000 0.24143 0.23717 0.23182
King County Library District 0.52581 0.54568 0.53653 0.53255
Valley Regional Fire Authority - - - -
King County Flood Zone - - - -
King County Ferry District - - - -
Subtotal 10.88242 10.64954 10.56510 10.46133
Total direct and overlapping 13.81595$ 13.57811$ 13.43829$ 13.34133$
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
$1.00
$1.50
$2.00
$2.50
$3.00
$3.50
2002 2003 2004 2005 2006 2007 2008
(2)
2009 2009 2010 2011
Pe
r
$
1
,
0
0
0
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FIGURE 7A: TEN YEARS CITY PROPERTY TAX RATES
2001 -2010
City of Auburn: 2011 CAFR Statistical Section
155
Page 2 of 2
2006 2007 2008 (2)2009 2010 2011
5,099,469$ 5,765,028$ 6,556,690$ 8,723,864$ 7,765,878$ 7,564,507$
5,099,469 5,765,028 6,556,690 8,723,864 7,765,878 7,564,507
100%100%100%100%100%100%
2.86520$ 2.73076$ 1.48385$ 1.48678$ 1.82336$ 1.93458$
- - - - - -
2.86520 2.73076 1.48385 1.48678 1.82336 1.93458
5.37383$ 4.94903$ 4.40970$ 4.37709$ 5.09382$ 5.99562$
1.32869 1.28956 1.20770 1.09772 1.28499 1.33816
2.49787 2.32535 2.13233 1.96268 2.22253 2.27990
0.23330 0.23158 0.22359 0.19700 0.21597 0.22366
0.21982 0.20621 0.30000 0.27404 0.30000 0.30000
0.53424 0.50027 0.45336 0.41736 0.48526 0.56621
- - 1.00000 1.10995 1.17910 1.17977
- - 0.10000 0.91230 0.10514 0.10976
- - 0.05500 0.05018 0.00348 0.00360
10.18775 9.50200 9.88168 10.39832 10.89029 11.99668
13.05295$ 12.23276$ 11.36553$ 11.88510$ 12.71365$ 13.93126$
$0.00
$2.00
$4.00
$6.00
$8.00
$10.00
$12.00
$14.00
2002 2003 2004 2005 2006 2007 2008
(2)
2009 2010 2011
Do
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s
(R
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FIGURE 7B: PROPERTY TAX RATES
Last Ten Fiscal Years
King County Ferry District
King County Flood Zone
Valley Regional Fire Authority
King County Library District
Emergency Medical Services
Port of Seattle
State of Washington
King County
Auburn School District
City of Auburn: 2011 CAFR Statistical Section
156
Total Tax Collections
Fiscal Levy for in Subsequent Current Year
Year Fiscal Year Amount % of Levy Years Amount % of Levy Levy Balance
King County:
2002 11,518,241$ 11,261,600$ 97.8%256,107$ 11,517,707$ 100.0%534$
2003 12,082,210 11,765,654 97.4%315,783 12,081,437 100.0%773
2004 12,223,173 12,031,253 98.4%178,573 12,209,826 99.9%13,347
2005 12,639,133 12,393,241 98.1%240,879 12,634,120 100.0%5,013
2006 13,399,840 13,164,248 98.2%228,999 13,393,247 100.0%6,593
2007 13,845,638 13,605,301 98.3%228,945 13,834,246 99.9%11,392
2008 9,553,486 9,406,398 98.5%124,483 9,530,881 99.8%22,605
2009 11,670,838 11,390,684 97.6%182,031 11,572,715 99.2%98,123
2010 12,721,658 12,459,564 97.9%172,604 12,632,168 99.3%89,490
2011 13,081,731 12,846,996 98.2%- 12,846,996 98.2%234,735
482,606$
Pierce County:
2002 267,001$ 258,385$ 96.8%8,616$ 267,001$ 100.0%-$
2003 435,886 423,834 97.2%12,052 435,886 100.0%-
2004 579,828 566,356 97.7%13,472 579,828 100.0%-
2005 783,135 769,223 98.2%13,912 783,135 100.0%-
2006 1,242,039 1,220,642 98.3%21,378 1,242,020 100.0%19
2007 1,851,622 1,816,706 98.1%34,876 1,851,582 100.0%40
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%23,930
2010 1,494,931 1,451,377 97.1%31,396 1,482,773 99.2%12,158
2011 1,425,494 1,401,537 98.3%- 1,401,537 98.3%23,957
64,988$
Total current levy balance 547,594$
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
95.0%
95.5%
96.0%
96.5%
97.0%
97.5%
98.0%
98.5%
99.0%
99.5%
100.0%
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
FIGURE 8: TEN YEARS COLLECTION OF LEVIED PROPERTY TAXES
Last Ten Fiscal Years
Collection percentage within the fiscal year of
the levy
Total collection percentage
City of Auburn: 2011 CAFR Statistical Section
157
Percentage Percentage
of Total City of Total City
Assessed Taxable Assessed Taxable
Taxpayer Value Rank Assessed Value Value Rank Assessed Value
Boeing Company 469,398,671$ 1 6.21%688,429,943$ 1 17.13%
Glimcher Realty Trust (Supermall)109,755,583 2 1.45%106,988,021 2 2.66%
Safeway 86,736,849 3 1.15%-
Universal Health 65,886,195 4 0.87%18,394,533 7 0.46%
Puget Sound Energy 64,805,982 5 0.86%50,873,374 3 1.27%
Muckleshoot Indian Tribe 55,123,700 6 0.73%-
Belara Communities LLC 51,114,300 7 0.68%
Park 277 (formerly EPropertyTax Inc.)33,672,100 8 0.45%
UPS Supply Chain Solutions 31,155,543 9 0.41%-
Wal-Mart Store 30,032,484 10 0.40%10,450,000 10 0.26%
La Terra Limited Partnership - 48,594,100 4 1.21%
Quadrant Corporation - -
Fritz Companies - 22,800,000 6 0.57%
U.S. West Communications - 29,739,794 5 0.74%
Roundup Co. (Fred Meyer)- 15,355,360 8 0.38%
West Valley 29 Partners - 12,541,700 9 0.31%
TOTALS 997,681,407$ 13.19%1,004,166,825$ 24.98%
Source: King County and Pierce County Departments of Assessments
Total assessed value for 2011:7,564,507,343$
Total assessed value for 2002:4,019,872,000$
2011 2002
City of Auburn, Washington
SCHEDULE 9a
PRINCIPAL TAXPAYERS-PROPERTY TAXES
Current Year and Nine Years Ago
Percentage Percentage
Sales of Total City Sales of Total City
Tax Sales Taxes Tax Sales Taxes
Received Sector (1)Rank Received Received Sector (1)Rank Received
414,344$ General Retail 1 3.3%
268,656 Automotive 2 2.1%
267,158 Automotive 3 2.1%
247,651 Automotive 4 1.9%
242,912 Automotive 5 1.9%
226,249 Automotive 6 1.8%
214,231 General Retail 7 1.7%
213,084 General Retail 8 1.7%
208,392 Manufacturing 9 1.6%
203,015 Automotive 10 1.6%
2,505,692$ 19.7%
Source: Washington State Department of Revenue
(1) It is illegal to disclose specific taxpayer sales tax information, so the above information is being provided
without identification
2011 2002
NOT AVAILABLE
City of Auburn, Washington
SCHEDULE 9b
PRINCIPAL TAXPAYERS-SALES TAXES
Current Year and Nine Years Ago
City of Auburn: 2011 CAFR Statistical Section
158
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
RETAIL TRADE SECTOR
Automotive/gas 2,827$ 2,862$ 2,893$ 3,326$ 3,428$ 3,643$ 3,255$ 2,559$ 2,553$ 2,785$
Furniture 276 318 438 218 263 268 241 220 194 218
Electronics & appliances - - - 451 288 262 242 132 121 127
Building materials 371 412 479 488 594 615 521 358 389 383
Food stores 526 401 395 358 346 378 360 352 354 331
Health & personal care - - - 120 130 143 152 150 144 148
Apparel 646 649 765 836 874 899 873 781 752 754
General merchandise 646 909 990 970 941 974 872 833 801 968
Food/Drink 560 596 651 - - - - - - -
Misc retail trade 1,017 864 905 724 939 1,334 1,234 755 834 851
6,869 7,011 7,515 7,491 7,803 8,516 7,750 6,140 6,142 6,566
SERVICE SECTOR
Information - - - 506 507 531 489 457 979 481
Finance & insurance - - - 86 84 85 85 83 68 66
Real estate, rental, leasaing - - - 294 311 330 394 304 288 304
Professional, scientific, technical - - - 119 116 162 146 200 191 175
Administrative, supply & remediation services - - - 197 195 301 261 261 239 295
Educational - - - 81 81 87 91 42 56 53
Healthcare & social serivces - - - 45 33 88 98 61 37 41
Arts & entertainment - - - 104 126 172 171 147 154 149
Accomodation & food service - - - 764 833 870 915 827 806 839
Other services - - - 477 492 502 457 485 493 482
- - - 2,673 2,779 3,128 3,107 2,867 3,310 2,882
OTHER SECTORS
Services (1)1,154 1,182 1,152 - - - - - - -
Construction 1,448 1,514 2,402 2,008 2,453 2,240 1,647 1,368 1,322 1,296
Manufacturing 607 882 793 414 486 625 643 383 411 583
Transportation 426 400 401 31 26 22 76 31 29 77
Wholesaling 1,676 1,674 1,795 2,313 2,571 2,943 2,306 1,073 1,180 1,260
Banking 110 98 127 - - - - - - -
Other business 126 121 108 73 72 143 72 47 128 224
Subtotal - other sectors 5,547 5,871 6,779 4,839 5,607 5,973 4,744 2,902 3,071 3,439
GRAND TOTAL 12,416$ 12,882$ 14,294$ 15,003$ 16,189$ 17,617$ 15,601$ 11,909$ 12,523$ 12,887$
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%0.26%0.36%0.36%0.36%0.36%
Regional Transit Authority 0.40%0.40%0.40%0.40%0.40%0.40%0.40%0.90%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%8.90%9.00%9.50%9.50%9.50%
Special sales tax rates
Restaurants-for stadium funding (2)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%0.30%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.
(2) This tax expired on October 1, 2011
Source: City of Auburn Finance department and State of Washington
City of Auburn, Washington
SCHEDULE 10RETAIL TAX COLLECTIONS BY SECTOR
Last Ten Fiscal Years
(Amounts Expressed in Thousands)
$0
$2,000
$4,000
$6,000
$8,000
$10,000
$12,000
$14,000
$16,000
$18,000
$20,000
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
(T
h
o
u
s
a
n
d
s
)
FIGURE 10: RETAIL TAX COLLECTIONSCity of Auburn: 2002 -2011
Other
Wholesaling
Manufacturing
Contracting
Services
Other Retail
Automotive
City of Auburn: 2011 CAFR Statistical Section
159
General Special Public Works Total Percentage
Fiscal Obligation Assessment Capital Revenue Trust Fund Primary of Personal Per
Year Bonds Bonds Leases Bonds Loans Government Income (1)Capita
2002 7,402,000$ 548,904$ 1,367,108$ 10,190,000$ 7,826,039$ 27,334,051$ 3.84%611.71$
2003 7,088,000 347,904 689,643 9,230,000 7,428,695 24,784,242 3.27%546.45
2004 6,754,000 228,354 10,322,787 8,220,000 7,066,042 32,591,183 4.16%706.43
2005 6,478,000 132,354 - 7,020,000 8,679,509 22,309,863 2.68%469.98
2006 11,210,000 36,827 - 5,905,000 9,853,410 27,005,237 3.04%551.63
2007 10,650,000 36,827 663,553 4,730,000 10,149,419 26,229,799 2.77%519.71
2008 10,053,000 36,827 646,799 3,495,000 9,730,324 23,961,950 1.82%357.61
2009 36,160,850 36,827 25,193,600 2,200,000 10,014,943 73,606,220 4.11%1,090.70
2010 64,816,850 - 604,685 23,220,000 10,296,024 98,937,559 5.35%1,449.21
2011 63,430,850 - 566,212 22,930,000 9,491,810 96,418,872 5.07%1,363.68
Source: City of Auburn, Finance Department
(1) Personal income data provided by US Census Bureau estimate for 2011; Hebert Research for 2000, 2004, 2005 and 2010 only;
City of Auburn, Washington
Last Ten Fiscal Years
Govrnmental Activities Business-type Activities
RATIOS OF OUTSTANDING DEBT BY TYPE
SCHEDULE 11
$0
$300
$600
$900
$1,200
$1,500
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
FIGURE 11: PER CAPITA DEBT
Last Ten Fiscal Years
City of Auburn: 2011 CAFR Statistical Section
160
Parks and Utility Total
Councilmanic Excess Levy Open Spaces Purpose Capacity
December 31, 2011 - Total Assessed Value:
7,199,853,130
2.5% of Assessed Value -$ 179,996,328$ 179,996,328$ 179,996,328$ 539,988,985$
1.5% of Assessed Value 107,997,797 (107,997,797) - - -
Statutory Debt Limit 107,997,797 71,998,531 179,996,328 179,996,328 539,988,985
Debt Outstanding 65,363,569 - - - 65,363,569
Less Redemption Fund Assets:
Available to Pay Principal 5,169,295 - - - 5,169,295
Plus liabilities:
Payables 3,279,413 - - - 3,279,413
Vacation/Sick Leave 1,943,624 - - - 1,943,624
Net Debt Outstanding 65,417,311 - - - 65,417,311
Remaining Debt Capacity 42,580,486$ 71,998,531$ 179,996,328$ 179,996,328$ 474,571,674$
General Capacity Special Purpose Capacity
City of Auburn, Washington
SCHEDULE 12
COMPUTATION OF LEGAL DEBT MARGIN
As of December 31, 2011
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Debt Limit 294,669$ 336,913$ 350,782$ 350,782$ 432,377$ 489,472$ 653,979$ 577,669$ 565,822$ 539,989$
Total net debt
applicable to limit (1,610) 3,576 17,055 17,055 11,352 10,757 10,771 62,671 66,868 65,364
Legal debt margin 296,279$ 333,337$ 333,727$ 333,727$ 421,025$ 478,715$ 643,208$ 514,998$ 498,954$ 474,625$
Total net debt
applicable to the limit
as a percentage of debt limit(0.55%)1.06%4.86%4.86%2.63%2.20%1.65%10.85%11.82%12.10%
City of Auburn, Washington
SCHEDULE 13
LEGAL DEBT MARGIN RATIOS
Last Ten Fiscal Years
(Expressed in Thousands)
City of Auburn: 2011 CAFR Statistical Section
161
Net Debt Percent Bonded Amount
Outstanding Applicable (3)Applicable
Net direct debt:
Net direct debt - City of Auburn (1)63,430,850$
Estimated net overlapping debt: (2)
King County 1,249,992,813$ 2.07%25,874,851$
Port of Seattle 336,120,000 2.07%6,957,684
School District No. 210 210,808,708 2.37%4,996,166
School District No. 408 88,340,000 77.39%68,366,326
School District No. 415 210,908,488 1.93%4,070,534
Rural Library District 124,123,367 3.29%4,083,659
Valley Regional Fire Authority 18,020,000 89.59%16,144,118
Pierce County 150,840,721 0.91%1,372,651
Total estimated net overlapping debt 131,865,989
Total direct and overlapping debt 195,296,839$
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 ratio 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, 2011
City of Auburn, Washington
SCHEDULE 14
City of Auburn: 2011 CAFR Statistical Section
162
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
2002 44,685 4,019,872$ 7,402,000$ 5,043$ 7,397$ 0.18%166$
2003 45,546 4,271,824 7,088,000 5,278 7,083 0.17%156
2004 46,135 4,492,179 6,754,000 7,248 6,747 0.15%146
2005 47,470 4,676,301 6,478,000 14,256 6,464 0.14%136
2006 48,955 5,099,469 11,210,000 25,372 11,185 0.22%229
2007 50,470 5,765,028 10,650,000 35,810 10,614 0.18%211
2008 67,005 6,556,690 10,053,000 41,603 10,011 0.15%150
2009 67,485 8,723,864 36,160,850 37,746 36,123 0.41%536
2010 68,270 7,765,878 64,816,850 46,058 64,771 0.83%949
2011 70,705 7,564,507 63,430,850 45,754 63,385 0.84%897
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
$0
$200
$400
$600
$800
$1,000
-
0.0020
0.0040
0.0060
0.0080
0.0100
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
De
b
t
/
A
s
s
e
s
s
e
d
V
a
l
u
e
Year
FIGURE 15: BONDED DEBT RATIOS
Last Ten Fiscal Years
Debt/AV Debt/Pop
City of Auburn: 2011 CAFR Statistical Section
163
Direct(2)Debt Service Requirements
Gross (1)Operating Net Revenue Times
Year Revenue Expense Available Principal Interest Total (3)Coverage
2001 18,638,847$ 12,866,310$ 5,772,537$ 1,102,368$ 579,260$ 1,681,628$ 3.43
2002 19,928,128 13,917,916 6,010,212 1,142,368 707,581 1,849,949 3.25
2003 21,243,060 15,611,753 5,631,307 1,407,343 603,357 2,010,700 2.80
2004 21,958,359 16,834,837 5,123,522 1,633,533 539,754 2,173,287 2.36
2005 24,562,487 18,078,747 6,483,740 1,800,568 417,834 2,218,402 2.92
2006 27,087,351 19,615,315 7,472,036 1,718,412 333,016 2,051,428 3.64
2007 27,492,779 21,237,294 6,255,485 1,914,523 281,065 2,195,588 2.85
2008 27,665,498 23,149,802 4,515,696 1,942,938 279,765 2,222,703 2.03
2009 31,265,941 27,314,611 3,951,330 2,002,938 217,283 2,220,221 1.78
2010 33,115,398 28,749,877 4,365,520 1,056,094 150,675 1,206,769 3.62
2011 34,909,200 29,201,088 5,708,112 1,013,830 1,248,612 2,262,442 2.52
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
$0
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
$7,000,000
$8,000,000
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
YEAR
FIGURE 16: UTILITY BOND COVERAGES
Last Ten Fiscal Years
Net revenue available Debt service requirements
City of Auburn: 2011 CAFR Statistical Section
164
Item 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
School enrollment (1)13,504 13,461 13,838 13,760 14,367 14,559 14,716 14,589 14,482 14,363
Rate of unemployment (2)6.1%6.2%5.1%4.6%4.1%3.7%4.2%8.1%8.7%7.8%
Population (3)45,010 45,355 46,135 47,470 48,955 50,470 67,005 67,485 68,270 70,705
Personal income (thousands of dollars) (4)1,040,462$ 1,094,254$ 1,161,714$ 1,247,566$ 1,342,818$ 1,444,871$ 2,024,087$ 1,989,661$ 1,848,752$ 1,901,540$
Per capita personal income (4)23,116$ 24,126$ 25,181$ 26,281$ 27,430$ 28,628$ 30,208$ 29,483$ 27,080$ 26,894$
Housing units (5)
One unit 8,671 8,745 8,990 9,105 9,402 9,625 14,186 14,235 14,333 14,823
Two or more 7,452 7,790 8,078 8,655 8,943 9,623 10,375 10,391 10,426 10,592
Mobile home or special 2,144 2,474 2,421 2,346 2,407 2,382 2,761 2,782 2,794 2,635
Total housing units 18,267 19,009 19,489 20,106 20,752 21,630 27,322 27,408 27,553 28,050
Sources:
(1) Auburn School District No. 408
(2) Bureau of Labor Statistics
(3) WA State Office of Financial Management
(4) US Census Bureau
(5) Office of Financial Management
City of Auburn, Washington
SCHEDULE 17
POPULATION, INCOME AND HOUSING TRENDSLast Ten Fiscal Years
0
20,000
40,000
60,000
80,000
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
FIGURE 17: POPULATION AND HOUSING TRENDS
Last Ten Fiscal Years
Population Total housing units
City of Auburn: 2011 CAFR Statistical Section
165
Percentage Percentage
of Total City of Total City
Employer Product/service Employees Rank Employment Employees Rank Employment
The Boeing Company Aerospace 5,179 1 17.3%10,000 1 50.5%
Muckleshoot Tribal Enterprises Gaming 2,500 2 8.3%1,200 3 4.7%
Auburn School District Education 1,800 3 6.0%1,682 2 7.6%
Super Mall Retail 1,700 4 5.7%
Green River Community College Education 1,067 5 3.6%900 4 3.4%
Auburn Regional Medical Center Hospital 805 6 2.7%500 7 2.8%
Emerald Downs Racetrack Horse racing 678 7 2.3%600 5 3.4%
Safeway Grocerty Retail/Distribution 650 8 2.2%
Social Security Administration Gov't / public offices 600 9 2.0%536 6 3.0%
Federal Aviation Administration Federal government 500 10 1.7%500 7 2.8%
General Services Administration Federal government 500 10 1.7%325 9 2.0%
Zones, Inc.Technology reseller 500 10 1.7%
City of Auburn City government 438 8 2.6%
Fred Meyer Retail 289 10 1.7%
TOTALS 16,479 55.0%16,970 84.5%
Sources: WA Employment Security Department
City of Auburn Economic Development Department
2011 2002
City of Auburn, Washington
SCHEDULE 18
MAJOR EMPLOYERS
Current Year and Nine Years Ago
0%
20%
40%
60%
80%
100%
2002 2011
FIGURE 18a: AUBURN EMPLOYMENT BASEPERCENTAGE OF TOP EMPLOYER COMPARED TO ALL EMPLOYERS
Last Ten Fiscal Years
Top employer
All employers
0%
20%
40%
60%
80%
100%
2002 2011
FIGURE 18b: AUBURN EMPLOYMENT BASE PERCENTAGE OF TOP 10 EMPLOYERS COMPARED TO ALL EMPLOYERS
Last Ten Fiscal Years
Top 10 employers
All employers
City of Auburn: 2011 CAFR Statistical Section
166
Department 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Mayor 3 4 4 8 10 11 12 12 10 11
Human resources 7 7 7 7 15 17 18 9 7 7
Finance 27 28 28 21 23 24 25 25 21 22
Municipal court 12 12 13 14 15 17 21 21 17 20
Legal 13 13 13 13 13 14 16 16 13 13
Planning 13 31 31 32 25 29 34 34 24 25
Police 114 115 115 117 118 121 152 152 131 120
Fire (1)81 81 81 82 82 - - - - -
Public works 62 48 49 48 48 54 63 63 43 43
Parks & recreation 35 37 37 36 36 38 40 40 35 37
Street 13 13 13 11 11 15 14 14 12 12
Water 14 16 16 16 16 19 20 20 22 22
Sewer 7 7 6 8 8 11 11 11 11 11
Storm utility 7 7 7 9 9 12 16 17 16 16
Solid waste 6 2 2 2 2 2 2 2 2 2
Airport 3 3 3 - - - - - - -
Cemetery 7 7 7 6 6 7 7 7 7 7
Golf course 6 6 6 6 6 9 9 9 8 8
Facilities (2)- - - - - - - 10 10 10
Information services - - - 10 11 15 18 18 14 15
Equipment Rental 8 10 10 10 9 9 10 11 6 7
TOTAL 438 447 448 456 463 424 488 490 408 408
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
-
20
40
60
80
100
120
140
160
Nu
m
b
e
r
o
f
E
m
p
l
o
y
e
e
s
FIGURE 19: STAFFING LEVELS BY TYPE OF SERVICELast Ten Fiscal Years
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
City of Auburn: 2011 CAFR Statistical Section
167
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Planning
Commercial permits 434 337 217 240 248 214 95 112 18 38
Commercial construction value ($1,000's)56,257$ 50,269$ 77,121$ 71,047$ 63,658$ 63,658$ 22,887$ 58,896$ 8,386$ 10,904$
Residential permits 421 583 766 604 485 293 165 85 184 229
Residential construction value ($1,000's)55,108$ 89,415$ 155,551$ 112,125$ 61,872$ 61,872$ 27,048$ 15,739$ 36,602$ 43,574$
Police
Crimes:
Arson 46 45 43 33 36 30 24 19 23 29
Assault 169 145 135 168 158 143 154 163 137 148
Burglary 578 596 861 623 686 590 630 590 725 757
DUI 170 189 240 218 158 145 194 193 192 214
Homicide 3 2 1 1 - 1 - 3 3 2
Narcotics 499 506 399 472 493 368 439 440 442 396
Rape 33 32 24 13 24 12 14 13 15 23
Robbery 68 69 91 85 122 92 102 92 79 107
Theft 2,243 2,082 2,344 2,509 2,216 1,962 2,343 2,362 2,533 2,435
Theft - motor vehicle 875 816 802 869 642 672 639 370 569 600
Traffic:
Non-criminal 9,643 9,946 7,962 6,850 4,978 6,865 6,794 7,788 7,182 5,400
Parking 2,188 1,821 1,827 2,140 3,965 4,802 3,740 4,026 4,648 3,383
Fire (3)
Type of response:
Building 101 114 107 94 98 - - - - -
Non-building 260 305 249 198 238 - - - - -
Alarm systems 511 486 497 474 524 - - - - -
Service 370 465 493 493 618 - - - - -
Other 819 917 940 870 979 - - - - -
First Aid 5,177 5,155 5,562 5,679 5,616 - - - - -
Parks and Recreation
Athletic teams 467 523 507 445 459 479 416 428 439 429
Recreation activities 1,527 1,708 1,896 2,086 2,069 2,719 2,056 2,335 2,281 3,462
Golf course rounds (1)53,967 41,753 45,336 47,501 43,454 50,500 54,993 50,572 49,950 45,484
Senior center visits 32,121 31,418 32,103 35,308 35,381 34,427 36,805 41,032 41,350 41,802
Cultural activities 88 55 56 56 58 84 84 90 101 127
Museum audience served (2)8,994 9,417 10,274 9,340 9,400 12,090 11,921 11,835 12,570 14,119
Cemetery burials 277 272 271 277 277 245 289 232 228 273
Sources: Various city departments
(1) 2003 - Portion of golf course closed for two months
(2) 2002 - Museum actual service has increased; decline in count due to change in calculation method
(3) 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
City of Auburn: 2011 CAFR Statistical Section
168
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
General City
Total area (square miles)22.7 22.8 22.8 23.3 23.4 23.4 30.0 30.1 30.1 30.2
Public Works
Miles of streets 166 180 180 180 180 186 272 276 283 285
Number of streetlights 2,934 2,934 3,355 3,410 3,575 3,602 5,074 5,392 5,523 5,581
Number of traffic signals n/a n/a 66 72 72 72 83 85 86 89
Utilities
Number of services 12,014 12,077 12,144 12,833 12,633 12,954 13,050 13,076 13,372 13,334
Miles of water mains 247 252 254 278 279 287 283 293 297 304
Miles of sanitary sewers 149 176 177 177 177 182 205 207 213 213
Miles of storm sewers n/a n/a 185 190 195 197 197 204 226 247
Number of fire hydrants n/a n/a 2,270 2,285 2,300 2,369 2,969 2,998 3,044 3,277
Public Safety
Number of fire stations (1)3 3 3 3 3 - - - - -
Number of police stations 3 2 2 2 2 2 2 2 2 2
Parks and Recreation
Total park acreage 533 535 592 596 596 596 598 602 602 602
Number of softball/baseball fields n/a n/a 19 19 19 19 19 18 18 18
Number of soccer/football fields n/a n/a 3 3 3 3 3 3 3 3
Number of playgrounds n/a n/a 25 29 30 30 32 33 35 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
City of Auburn: 2011 CAFR Statistical Section
169
Prepared by:
Shelley Coleman
Finance Director
Rhonda Ewing
Financial Services Manager
Martin Chaw
Financial Planning Manager
Janice Davies
Payroll and Accounts Payable Manager
Brenda Goodson-Moore
Utilities Customer Care Manager
Lanny Petitjean
Senior Accountant
Dondi Koester
Senior Accountant
Consuelo Rogel
Financial Analyst
Teri Ashton
Accountant
Evelyn McOsker
Finance Secretary
City of Auburn: 2011 CAFR Statistical Section
170