HomeMy WebLinkAbout2012 CAFR electronic version GFOA.pdf2012Comprehensive Annual Financial Report
for the year ended december 31, 2012
2012Comprehensive Annual Financial Report
for the year ended december 31, 2012
CITY OF AUBURN
WASHINGTON
COMPREHENSIVE ANNUAL
FINANCIAL REPORT
Fiscal Year January 1, 2012 through December 31, 2012
Prepared by
Finance Department
Shelley Coleman, Finance Director
City of Auburn: 2012 CAFR Table of Contents
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COMPREHENSIVE ANNUAL FINANCIAL REPORT
For the Year Ended December 31, 2012
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 Position ............................................................................................................ 35
Statement of Activities ................................................................................................................. 36
Fund Financial Statements:
Governmental Funds
Balance Sheet ........................................................................................................................... 39
Statement of Revenues, Expenses and Changes in Fund Balances ............................................... 40
Reconciliation of the Statement of Revenues, Expenditures, and Changes in
Fund Balances of Government Funds to the Statement of Activities ......................................... 41
Statement of Revenues, Expenses and Changes in Fund Balances – Budget and Actual:
General Fund ........................................................................................................................ 42
Arterial Street Fund ............................................................................................................... 43
Proprietary Funds:
Statement of Net Position ......................................................................................................... 46
Statement of Revenues, Expenses, and Changes in Fund Net Position ........................................ 47
Statement of Cash Flows .......................................................................................................... 48
Fiduciary Funds:
Statement of Fiduciary Net Position .......................................................................................... 52
Statement of Changes in Fiduciary Net Position ........................................................................ 53
Notes to the Financial Statements ......................................................................................................... 55
Required Supplemental Information ...................................................................................................... 99
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
Statement 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
City of Auburn: 2012 CAFR Table of Contents
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Statement of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual: Page
(continued)
Drug Forfeiture Special Revenue Fund ....................................................................................113
Housing & Community Development Special Revenue Fund ..................................................114
Recreation Trails Special Revenue Fund ..................................................................................115
Business Improvement Area Special Revenue Fund .................................................................116
Cumulative Reserve Special Revenue Fund .............................................................................117
Mitigation Special Revenue Fund ...........................................................................................118
Non-Major Debt Service Funds:
Combining Balance Sheet ......................................................................................................... 120
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances .......................121
Capital Project Fund:
Combining Balance Sheet ......................................................................................................... 124
Combining Statement of Revenues, Expenditures, and Changes in Fund Balance ....................... 125
Permanent Fund:
Balance Sheet........................................................................................................................... 128
Statement of Revenues, Expenditures and Changes in Fund Balance .......................................... 129
Non-Major Enterprise Funds:
Combining Statement of Net Position ...................................................................................... 132
Combining Statement of Revenues, Expenses, and Changes in Net Position ............................... 133
Combining Statement of Cash Flows ........................................................................................ 134
Internal Service Funds:
Combining Statement of Net Position ...................................................................................... 138
Combining Statement of Revenues, Expenses, and Changes in Net Position ............................... 139
Combining Statement of Cash Flows ........................................................................................ 140
Agency Fund:
Statement of Changes in Assets and Liabilities ........................................................................... 144
III. STATISTICAL SECTION
Schedule
Net Position by Components .................................................................................................. 1 ............ 146
Changes in Net Positions ....................................................................................................... 2 ............ 147
Fund Balances, Government Funds ........................................................................................ 3 ............ 148
Changes in Fund Balances, Government Funds ....................................................................... 4 ............ 149
Tax Revenues by Source, Government Funds ......................................................................... 5 ............ 150
Assessed Value by Type ......................................................................................................... 6 .............151
Property Tax Data ................................................................................................................. 7 ............ 152
Property Tax Levies and Collections ...................................................................................... 8 ............ 154
Principal Taxpayers – Property Taxes ..................................................................................... 9 ............ 155
Retail Tax Collections by Sector ............................................................................................ 10 ............ 156
Ratios of Outstanding Debt by Type ......................................................................................11 ............ 157
Computation of Legal Debt Margin ...................................................................................... 12 ............ 158
Legal Debt Margin Ratios ..................................................................................................... 13 ............ 158
Computation of Net Direct and Estimated Overlapping Debt ................................................ 14 ............ 159
Ratios of Net General Bonded Debt to Assessed Value .......................................................... 15 ............ 160
Pledged Revenue Bond Coverages ........................................................................................ 16 .............161
Population, Income and Housing Trends .............................................................................. 17 ............ 162
Major Employers.................................................................................................................. 18 ............ 163
Staffing Levels by Department .............................................................................................. 19 ............ 164
Operating Indicators by Department ................................................................................... 20 ............ 165
Capital Asset Indicators by Department ................................................................................. 21 ............ 166
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
Innovation & Technology Director Ron Tiedeman
Parks Director Daryl Faber
Planning Director Jeff Tate - Interim
Police Chief Bob Lee
Public Works Director Dennis Dowdy
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June 21, 2013
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, 2012. 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, 2012. 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
City of Auburn: 2012 CAFR Letter of Transmittal
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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.
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, 2012 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 2011 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 71,240 people
within its incorporated limits.
City of Auburn: 2012 CAFR Letter of Transmittal
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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 is a
member/owner of Valley Communications providing emergency 911 services and South 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 almost 4,000 people in its Auburn facility.
Boeing is a worldwide supplier of aircraft and related products. The City’s assessed valuation in 2012,
for 2013 property tax collection, was $6.911 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. In October 2012, the Auburn Regional
Medical Center was formally sold to MultiCare Health System. MultiCare Auburn Medical Center
serves the local geographic area and is a major trauma center of the northwest providing 213 beds and
supports about 635 employees. The medical center recently expanded and now also includes an
oncology center.
Auburn also has experienced an increase in new businesses and development activity. Major new
businesses include Coastal Farm and Ranch, a 124,000 square foot retail store that provides a wide
variety of products and services for homeowners, farms, and other businesses. Significant new
development projects include the new Trades Building and Student Life Building on the Green River
Community College campus; construction of Project Lofts, a new six-story mixed use building in
downtown Auburn that will feature commercial and residential units and a covered parking garage; and
$35 million in interior and exterior improvements to the Outlet Collection Seattle, formerly known as
the SuperMall of the Great Northwest.
As the City moves forward, several positive developments loom on the horizon. In 2012, the City was
identified as one of only fifteen Innovation Partnership Zones (IPZ) in Washington State that will help
businesses thrive through partnerships in research and workforce developments. Construction of the
Auburn Gateway Project is expected to begin in mid-2013, which will replace the former Valley 6 drive-
in theater with 720,000 square feet of retail and residential units and up to 1.6 million square feet of
office space. Finally, construction of the new Franciscan Medical Pavilion is expected to begin in 2013,
a two-story 38,000 square foot mixed use building that will provide space for primary care as well as
specialty cardiology, vascular surgery, endocrinological, and general surgical medical care services. As
these new businesses and developments take hold, they will serve to strengthen the City’s economic
City of Auburn: 2012 CAFR Letter of Transmittal
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foundation. Auburn also continues to be a center for automobile sales, drawing customers throughout
the Puget Sound region.
Since 2003 the City’s collected total assessed property valuation has risen from $4.27 billion, collected
in 2003 to $7.22 billion, collected in 2012. The sales tax receipts went from $13.9 million to $16.7
million in the same time period. The recent economic downturn, coupled with the impact of the
Streamlined Sales Tax (SST) legislation enacted by the State of Washington that went into effect July 1,
2008, has dropped sales tax revenues from their high in 2007 of $18.9 million to $16.7 million in 2012.
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 $1.89 million in mitigation payments in 2012. 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 $16.7 million (+2.9%) 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 392 full-time equivalents (FTEs). In 2012, the City contracted out the Municipal
Court to King County District Court, resulting in a reduction of 19 full-time positions. The staffing level
is at the lowest it has been in the past 10 years.
Despite economic cycles, the City has continually focused on enhancing the quality of life in the
community and focusing on maintaining and redeveloping its aging infrastructure. For example, in
2013, the City sold $11.4 million in new revenue bonds to support improvements to critical water and
stormwater facilities, construction of which will ensure continued quality services for current and future
utility customers. The City is also currently in the process of identifying funding to construct a new $12
million, 20,000 square foot Community Center on the Les Gove Park campus. Once a funding strategy
is identified, construction of the Center will begin. The Center will provide a venue for community and
human service programs, trade shows, and recreation and cultural offerings. This project, along with the
Senior Center, the White River Valley Museum and the recently completed Auburn Activity Center,
serves as a central gathering place for the community and a focal point for community-wide events.
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, but
have enabled the General Fund to remain on a firm financial footing during the most recent recession.
The City is maintaining a stable financial condition by managing expenditure budgets to available
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 in satisfactory condition. The Golf Course fund has been under some economic pressure due
to two years of poor weather and the economic downturn but activity is improving concurrent with
strengthening economic conditions. The City completed a review of the City’s water, sewer and
stormwater utility rates in 2012 and established rates to fund operating and capital needs through 2017
City of Auburn: 2012 CAFR Letter of Transmittal
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including the issuance of new revenue bonds in early 2013 to support significant new utility
construction projects.
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 municipal planning and capital projects underway. These include
reconstruction of aged utility infrastructure; street improvements including rehabilitation of local
neighborhood streets, substantial completion of the A Street NW corridor, construction of the M street
underpass project; and completion of the Auburn Activity Center. These projects will improve
mobility, will contribute to the completion of a North/South arterial corridor, and provide for greater
recreational opportunities for the community. These municipal projects, coupled with the new private
sector developments described earlier, will help ensure local economic growth continue, albeit 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 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
City of Auburn: 2012 CAFR Letter of Transmittal
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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 2012 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 2012. Please see the Auditor’s Report. The State Auditor’s Office also audits
the City’s administration of its federal grants under the single audit concept.
B. Awards
The Government Finance Officer’s Association of the United States and Canada (GFOA) awarded a
Certificate of Achievement for Excellence in Financial Reporting to the City of Auburn for its
Comprehensive Annual Financial Report for the fiscal year ended December 31, 2011. This was the
twenty-fifth 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.
City of Auburn: 2012 CAFR Letter of Transmittal
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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-one years. The City was one of just nineteen cities in the state to receive
both the Certificate of Achievement for Excellence in Financial Reporting and the Distinguished Budget
Presentation award for 2011.
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: 2012 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 position, the amount by which total assets exceed total liabilities, equal $620.1
million, an increase of $18.8 million or 3.1%. Of this, a total of $528.6 million, or 85.2% of total net
position, is net investment in capital assets, and includes assets such as utility systems, streets, buildings, land,
vehicles and equipment. An additional $5.8 million of net position is restricted for purposes of endowment
and debt service. Of the remaining $85.7 million of net position, $12.0 million is legally restricted, reserved
by City policy for specific purposes, or is restricted for use by the City’s utilities and $73.7 million is
unrestricted.
• The net increase in government-wide net position during 2012 was $18.8 million. Of this amount, $21.4
million was directly related to the increase in City-owned net investment in capital assets and infrastructure.
• On a government-wide basis, governmental net position increased by $10.9 million during 2012, primarily
reflecting an increase in net investment in capital assets. The increases in net investment in capital assets were
attributable to the design and construction of the M Street Grade Separation project and construction of the A
Street Northwest Extension project.
• Business-type net position increased by $7.9 million to $208.9 million during 2012 as a result of capital
contributions related to the City’s water, sewer and storm water utilities.
• Governmental fund balances at year-end totaled $42.5 million. Of this amount, $17.4 million, or 41%, is
unassigned and available to fund ongoing activities.
Compared to 2011, total governmental fund balances increased by $.8 million. This increase reflects the net
effect of a general but very gradual improvement in the regional economy and continued vigilance in
monitoring general spending.
• Total City debt payments during the year, net of compensated absences and other post employment benefits,
were $2.62 million. Total outstanding debt, including bonds and loans, totaled $100.8 million at December
31, 2012. This ending debt balance is a decrease of $1.2 million from 2011 and is the result of scheduled debt
repayments. See note 9 for further information on debt activity during the year.
City of Auburn: 2012 CAFR Management’s Discussion and Analysis
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Other City Highlights:
Parks and Community Development
• Completed construction of the South Division Street Promenade and replacement of downtown street lights.
The Promenade serves as an anchor for the future redevelopment of the City’s downtown core.
• Implemented the Storefronts program, an initiative to fill vacant downtown commercial spaces with
temporary art installations.
• Established sister city relationships with cities in Japan, Korea, Italy and China.
• Received designation as an Innovation Partnership Zone (IPZ) by the State of Washington, one of 15 IPZ’s and
only one of only 4 cities in the State to receive this designation.
• Opened new Activity Center/Gymnasium at Les Gove Park and initiated new activities at this facility including
teen afterschool programs, indoor playground for toddlers, birthday party packages and outdoor climbing
wall activities.
• Initiated new downtown community events including a concert series, ArtRageous festival and a Community
Art Walk.
• Improved opportunities for recreation throughout the City including resurfacing tennis courts, replacing
playground equipment, and adding a practice wall to Game Farm Park and opening of the City’s first off-leash
dog run area at Roegner Park.
Public Works
• Completed the A Street NW Extension Project
• Completed the South Auburn ITS (Intelligent Transportation System) expansion project.
• Completed design and began construction of the M Street SE Underpass (grade separation) project.
• Obtained funding from the King County Flood Control District and completed removal of temporary flood
control barriers along the Green River.
• Continue commitment to city-wide local and arterial street repairs. These repairs are supported by dedicated
funding from City property taxes and from a 1.0% utility tax adopted in 2008.
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: 2012 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 Position
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 position 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
contracted 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 Position is found on the bottom of the governmental funds’ Balance
Sheet, while the reconciliation between the governmental fund Statement of Revenues, Expenditures and Changes in
Fund Balance and the government-wide Statement of Activities is found directly following the governmental funds’
Statement of Revenues, Expenses, and Changes in Fund Balances.
City of Auburn: 2012 CAFR Management’s Discussion and Analysis
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The City maintains twenty-two (22) individual governmental funds. Of these, three are considered major (the general
fund, the arterial street fund, and the capital improvement projects fund) and are presented separately in the
governmental fund Balance Sheet and the governmental fund Statement of Revenues, Expenditures and Changes in
Fund Balances. The remaining governmental funds are combined into a single column labeled “Other Governmental
Funds”. Individual fund data for each of the other governmental funds can be found in the combining statements later
in this report.
The City maintains budgetary control over its operating funds through the adoption of a biennial budget. Budgets are
adopted at the fund level according to state law. Budgetary comparison statements are presented for the general and
arterial street funds as part of the basic financial statements. Other budgetary comparison statements 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.
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
City of Auburn: 2012 CAFR Management’s Discussion and Analysis
19
pension benefit and other postemployment benefit required supplementary information is found in the required
supplemental information.
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 position 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 Position from 2011 to 2012 show
an increase in total net position of $18.8 million. Following is a condensed version of the government-wide statement
of net position with a comparison to 2011:
As of 12/31/12 As of 12/31/11 As of 12/31/12 As of 12/31/11 As of 12/31/12 As of 12/31/11
Current and other assets 97,545,749$ 101,433,282$ 41,668,321$ 48,333,780$ 139,214,070$ 149,767,062$
Capital assets, net of
accumulated depreciation 386,230,900 373,321,713 208,530,146 195,390,894 594,761,046 568,712,607
Total assets 483,776,649 474,754,995 250,198,467 243,724,674 733,975,116 684,433,310
Long-term liabilities 62,930,643 64,046,364 34,579,930 36,574,493 97,510,573 100,620,857
Other liabilities 9,537,546 10,286,466 6,750,234 6,182,683 16,287,780 16,469,149
Total liabilities 72,468,189 74,332,830 41,330,164 42,757,176 113,798,353 117,090,006
Net position
Net investment in capital assets 354,899,294 340,941,112 173,709,864 166,289,542 528,609,158 507,230,654
Restricted for:
Capital Projects 10,603,982 11,619,999 - - 10,603,982 11,619,999
Nonexpendable Permanent Endowment 1,475,580 1,449,220 - - 1,475,580 1,449,220
Debt Service 50,439 54,717 4,306,893 3,742,596 4,357,332 3,797,313
Tourist Promotion 109,913 93,412 - - 109,913 93,412
Drug Investigation & Enforce 856,402 948,619 - - 856,402 948,619
Comm Dev Block Grant 43,397 43,397 - - 43,397 43,397
Central Business Distr Dev 24,403 21,599 - - 24,403 21,599
Rate Stabilization - - 412,165 411,386 412,165 411,386
Unrestricted 43,245,050 45,250,090 30,439,381 30,523,974 73,684,431 75,774,064
Total net position 411,308,460$ 400,422,165 208,868,303$ 200,967,498$ 620,176,763$ 601,389,663$
Governmental Activities Business-type Activities Total
STATEMENT OF NET POSITION
Comparative Analysis of 2012 and 2011
The largest component of the City’s net position, $528.6 million, or 85.2%, is its net investment in capital assets.
These capital assets, such as streets, parks, trails, and vehicles and equipment related to police and public works, are
used to provide services to the citizens. As a result, these assets are not for sale, and are therefore not available to
fund current and future City obligations. The City elected the GASB 34 reporting option to include all general
infrastructure of the City acquired or substantially renovated since 1980.
The largest component of unrestricted net position, $43.2 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 position, $30.4 million, represents the unrestricted net position 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.
City of Auburn: 2012 CAFR Management’s Discussion and Analysis
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Restricted governmental fund net position is $13.1 million and is restricted for purposes such as capital project
construction, debt service, drug investigation and enforcement, and endowment. Total net investment in capital assets
increased $21.3 million.
Changes in Net Position
The change in net position represents the increase or decrease in City net position resulting from its various activities.
Following is a condensed version of the City’s changes in net position. The table shows the revenues, expenses and
related changes in net position for both governmental-type and business-type activities:
2012 2011 2012 2011 2012 2011
Revenues:
Program revenues
Charges for services 7,916,897$ 9,508,793$ 50,710,688$ 45,045,488$ 58,627,585$ 54,554,281$
Operating grants and contributions 3,560,707 1,724,711 97,052 116,735 3,657,759 1,841,446
Capital grants and contributions 17,835,784 19,730,140 7,248,835 15,981,735 25,084,619 35,711,876
General revenues -
Property taxes 14,970,136 15,204,611 - - 14,970,136 15,204,611
Sales taxes 16,679,278 16,213,244 - - 16,679,278 16,213,244
Interfund utility taxes 3,281,816 2,948,297 - - 3,281,816 2,948,297
Admission & utility taxes 8,856,498 9,049,689 - - 8,856,498 9,049,689
Excise taxes 2,141,620 1,859,738 - - 2,141,620 1,859,738
Other taxes 4,679,333 4,644,909 - - 4,679,333 4,644,909
Investment earnings 178,618 224,593 82,903 101,694 261,521 326,287
Miscellaneous revenue 547,391 775,969 1,781,676 2,584,004 2,329,067 3,359,972
Total revenues 80,648,078 81,884,694 59,921,154 63,829,656 140,569,232 145,714,350
Expenses:
General government 9,441,887 8,581,829 - - 9,441,887 8,581,829
Public safety 27,339,301 27,320,805 - - 27,339,301 27,320,805
Transportation 15,736,610 12,123,615 - - 15,736,610 12,123,615
Physical environment 2,535,877 2,327,911 - - 2,535,877 2,327,911
Culture and recreation 8,310,210 7,606,584 - - 8,310,210 7,606,584
Economic environment 2,914,335 3,135,984 - - 2,914,335 3,135,984
Health and human services 633,175 619,172 - - 633,175 619,172
Interest on long-term debt 2,336,960 1,685,055 - - 2,336,960 1,685,055
Water - - 9,655,724 8,961,736 9,655,724 8,961,736
Sanitary sewer - - 19,680,724 18,852,402 19,680,724 18,852,402
Storm drainage - - 8,025,729 6,752,021 8,025,729 6,752,021
Solid waste - - 11,305,322 9,957,943 11,305,322 9,957,943
Golf course - - 1,912,174 1,903,836 1,912,174 1,903,836
Other business-type activities - - 1,954,104 2,010,776 1,954,104 2,010,776
Total expenses 69,248,355 63,400,955 52,533,777 48,438,714 121,782,132 111,839,668
Increase in net assets before transfers 11,399,723 18,483,739 7,387,377 15,390,942 18,787,100 33,874,681
Transfers (513,428) (483,107) 513,428 483,107 - -
Change in net position 10,886,295 18,000,632 7,900,805 15,874,049 18,787,100 33,874,681
Net position-beginning of period 400,422,165 382,421,533 200,967,498 185,093,449 601,389,663 567,514,982
Net position-end of period 411,308,460$ 400,422,165$ 208,868,303$ 200,967,498$ 620,176,763$ 601,389,663$
Governmental Activities Business-type Activities Total
CHANGES IN NET POSITION
Comparative Analysis of 2012 and 2011
Governmental activities contributed $10.9 million to the total increase in City net position. 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.
City of Auburn: 2012 CAFR Management’s Discussion and Analysis
21
General tax revenues increased by 1.4% to $50.6 million between 2011 and 2012, compared to an increase of 3.8%
between 2010 and 2011:
• Property tax revenue decreased $234,000 or 1.5%.
• Sales tax collections increased $466,000 or 2.9%, reflecting continued gradual improvement in the economy.
• Utility and admission tax revenue increased by $140,000 or 1.1%.
• Excise tax revenue increased by $282,000 or 15.2%. The increase in excise taxes is due primarily to real estate
excise taxes (REET) which increased as a result of an increase in real estate transactions.
Investment earnings fell by $45,975 in governmental activities and $18,791 in business-type activities for a
government-wide decline of $64,766 or 19.8%. These declines reflect the continued low interest rates.
Government-wide Miscellaneous revenue decreased $1.03 million, 2012 revenue was attributable to contributions
from King County Flood Control District for flood barrier removal and the City of Algona for the purchase of storage
in the Lakeland Hills Reservoir.
Government-wide expenses increased by approximately $9.9 million or 8.9% and were attributable to the “A” street
project, “M” street grade separation project, Storm utility projects and increased Solid Waste contractor fees.
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 Services10%
Capital Grants & Contributions
4%
Operating Grants &
Contributions
22%
Property Taxes19%
Sales Taxes21%
Interfund Utility Taxes4%
Utility & Admission Taxes11%
Other Taxes8%
Other Revenue
1%
City of Auburn: 2012 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 position totaled $208.8 million, an increase of 3.3%. Key components of this increase include:
• Business-type revenues decreased $3.9 million due primarily to a decrease in utility capital contributions.
• Income (loss) before capital contributions and transfers amounted to:
Water fund: $ 1,433,031
Sanitary sewer fund: (419,477)
Storm fund: 275,720
Solid waste fund: 367,761
Golf course: (529,713)
Non-major funds: (456,801)
$ 670,521
• Net transfers-in totaled $513,428.
City of Auburn: 2012 CAFR Management’s Discussion and Analysis
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The following chart shows the relative net position balances for each business-type fund:
Business Type Net Position – By Fund
Water
32.4%
Sanitary Sewer
35.8%
Storm Drainage23.9%
Solid Waste0.5%
Airport
4.5%
Cemetery0.4%Golf Course
2.4%
The majority of net position 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 position is not available to support the
ongoing expenses of the funds. Following are two charts that contrast the total net position to the spendable portion
of net position for each enterprise fund:
Comparison of Total Net Position to Spendable Net Position
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 Position
Total Net Position
City of Auburn: 2012 CAFR Management’s Discussion and Analysis
24
Comparison of Total Net Position to Spendable Net Position
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 Position
Total Net Position
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: 2012 CAFR Management’s Discussion and Analysis
25
Business Type Activity Revenues
By Source
Charges for Services
83.3%
Capital Contributions12.1%
Investment Earnings0.1%
Business-type Miscellaneous Income
4.5%
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, 2012, the City’s governmental funds had combined fund balances of $42.5 million, an increase of
$.7 million or 1.8% over the previous year. This increase is primarily due to a decrease in fund balance from the
spending of resources associated with the local revitalization bond proceeds and an increase in fund balance for the
General fund. The following table shows the changes in fund balance between 2011 and 2012.
Changes in Fund Balance - By Fund
Fund 2012 2011 Difference
General fund 23,701,900$ 21,275,495$ 2,426,405$
Arterial street fund 2,143,713 1,783,698 360,015
Capital improvement fund 6,412,475 6,164,487 247,988
Mitigation fund 3,061,179 3,838,152 (776,973)
Cemetery endowment fund 1,585,916 1,556,570 29,346
All other government funds 5,607,774 7,147,197 (1,539,423)
Total 42,512,957$ 41,765,599$ 747,358$
City of Auburn: 2012 CAFR Management’s Discussion and Analysis
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Of the government funds’ total fund balances, $17.4 million is unassigned. Nonspendable, restricted, committed and
assigned fund balances total $25.1 million. Of this $25.1 million, $7.4 million is earmarked for capital projects, $9.7
million is in special revenue funds that are earmarked for specific purposes and $1.6 million is for endowment.
The general fund is the primary operating fund of the City. All receipts and payments of ordinary City operations are
processed through it unless they are required to be accounted for in another fund. At the end of 2012, the general
fund had a fund balance of $23.7 million, $5.9 million of which is assigned, $17.4 million is unassigned and $.4
million is nonspendable.
Other funds that had significant fund balances include:
• $6.4 million in the capital improvement projects fund; used for various governmental capital asset projects.
• $3.0 million in the mitigation fund; used to collect fees from new development to mitigate the cost of new
roads and other infrastructure.
• $1.6 million in the cemetery endowed care fund; used for maintenance of the cemetery.
• $5.6 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 Fund56%
ArterialStreet Fund
5%
CapitalImprovement
Fund
15%
MitigationFund7%
CemeteryEndowment
Fund
4%
All OtherGovernmentalFunds13%
The increase in the general fund balance of $2.4 million is primarily due to an increase in revenues associated with the
gradual improvement in local and regional economic conditions as well as continued vigilance in monitoring general
expenditure activity.
City of Auburn: 2012 CAFR Management’s Discussion and Analysis
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General fund revenue increased by $2.5 million, sources of which are shown in the chart below. Property taxes
increased $299,000 or 2.3% and sales taxes increased $479,000 or 3% reflecting the continued gradual improvement
in the regional economy. Licenses and Permits and Charges for Services both increased, reflecting an increase in
commercial construction activity. Building permit and Plan Check activity increased as a result of a significant remodel
of the Supermall (now known as the Outlet Collection Seattle) and a major re-roofing project for a major aerospace
manufacturing company. Intergovernmental revenues increased as a result of one-time proceeds from the State of
Washington from the liquidation of state-run liquor stores and one-time federal FEMA grant funds for the
reimbursement of expenses related to a winter storm. Fines and Forfeitures have decreased, reflecting a decline in
revenue collections from fines related to the Redflex red light traffic cameras.
2012 General Fund Revenue Increases – By Source
Property Taxes
$299,594
Sales Taxes$478,920
InterfundUtility Taxes$285,873
Utility &
Admission Taxes
$141,580
Licenses & Permits
$575,127
Charges for Services$769,697
Fines & Forfeitures($347,369)
Intergovernmental$415,457
Miscellaneous
($63,690)
($600,000)
($400,000)
($200,000)
$0
$200,000
$400,000
$600,000
$800,000
Significant changes in fund balance include:
• The ending fund balance increase of $248,000 in the capital improvement projects fund is largely due to the
timing of one time transfers associated with the construction of the Activity Center and the M Street Grade
Separation projects.
• The mitigation fund decreased, primarily due to transfers out of $2.2 million related to the construction of the
M Street SE Grade Separation and the A Street NW extension projects.
• The local revitalization fund decreased by a total of $1.6 million due to completion of construction activities
for the South Division Street Promenade project.
City of Auburn: 2012 CAFR Management’s Discussion and Analysis
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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
2012 budget included:
• Budgeted General Fund expenditures increased from $53.2 million to $55.1 million. Significant changes
include authorization of new staff positions throughout the City, an increase in State of Washington Public
Employee Retirement System rates, and a transfer to the Cumulative Reserve Fund to replenish the fund
balance as a result of past withdrawals.
Reasons for the variances in the general fund between the final budget and actual results include:
• Actual General Fund revenues totaled $52.7 million and exceeded budget by $3.4 million. Significant areas of
variance include licenses and permits and charges for services, which exceeded budget by $1.2 million and
$572,000, respectively, reflecting increased activity from building permits and plan check fees; property taxes
exceeded budget by $304,000 reflecting stronger collections than anticipated.
• Actual General Fund expenditures totaled $49.1 million and were under-budget by $6.0 million. 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, 2012
totaled $594.7 million (net of accumulated depreciation), an increase of $26 million from 2011. 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 $5.9 million in utility infrastructure assets and $5.8 million
in governmental infrastructure assets.
• $7.4 million was spent by proprietary funds on construction projects during the year.
• $22 million was spent by governmental funds on construction projects during the year. Some of the larger
projects in the governmental funds include:
$10.0 million on M St SE Grade Separation
$2.8 million on A Street NW Extension
$1.1 million on 2012 Pavement Patching Chip seal
$1.1 million on Division Street Promenade
City of Auburn: 2012 CAFR Management’s Discussion and Analysis
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A summary of the City’s capital assets follows:
Summary of Capital Assets (net of depreciation)
As of 12/31/12 As of 12/31/11 As of 12/31/12 As of 12/31/11 As of 12/31/12 As of 12/31/11
Land 110,399,907$ 109,603,713$ 14,505,063$ 14,505,063$ 124,904,970$ 124,108,776$
Building 47,118,785 47,569,244 6,520,898 6,733,673 53,639,683 54,302,917
Site improvements 5,849,425 5,543,338 169,889,167 158,374,226 175,738,592 163,917,564
Equipment 6,889,727 6,605,895 409,851 456,604 7,299,578 7,062,499
Intangibles 746,511 805,556 5,196,600 - 5,943,111 805,556
Infrastructure 186,775,205 181,677,453 - - 186,775,205 181,677,453
Construction in progress 28,451,340 21,516,518 12,008,567 15,321,328 40,459,907 36,837,846
386,230,900$ 373,321,717$ 208,530,146$ 195,390,894$ 594,761,046$ 568,712,611$
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 $84.6 million. Of this amount,
$27.4 million is due to other governments, $34.6 million is general obligation bonds, and $22.6 million is revenue
bonds for the water, sewer and storm utilities. The City currently maintains a rating of Aa3 with Moody’s and a rating
of AA with Standard & Poor’s for its general obligation debt.
The following schedule summarizes the City’s bonded debt:
Summary of Bonded Debt
Governmental
Activities
Business-type
Activities Total
General obligation bonds 29,585,000$ 5,040,000$ 34,625,000$
Revenue bonds - 22,625,000 22,625,000
Due to other governments 27,379,850$ - 27,379,850
56,964,850$ 27,665,000$ 84,629,850$
Below is a summary of additional, non-bonded long-term debt of the City:
Other Long-Term Debt
Public Works Trust Fund loans 8,687,599$
Employee leave benefits 2,608,597
Other Post Employment Benefits 4,068,439
15,364,635$
City of Auburn: 2012 CAFR Management’s Discussion and Analysis
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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.
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. While real estate activity and the US stock market have
increased, concerns remain over unemployment, the uncertainty of Congressional decisions and agreements on a
strategy to resolve the nation’s deficit, and continued cost-cutting measures taken at the State level to address its
looming deficits. For example, in 2012, the State reduced its streamlined sales tax revenue distributions to cities by
3.4% and temporarily suspended its distributions of liquor excise taxes. While the liquor excise taxes are expected to
be resumed, it will be at a permanently reduced level.
As a result of these challenges, the City remains cautious and as a result continues to vigilantly monitor and control its
expenses. However, in the longer-term, the economic outlook for the City is positive. The City has made significant
investments in the community, including completion of major redevelopment in its downtown core as well as major
community projects such as the opening of the Auburn Activity Center which serves as a central community gathering
place for classes and recreation. The City was once again named “Playful City USA” for the fourth consecutive year.
City construction and retail activity is improving, paralleling the trend seen regionally and nationally. The City also
has placed increased emphasis on its economic development efforts, which has resulted in the City receiving
designation as an Innovation Partnership Zone, one of only 4 cities across the State of Washington with this
designation.
Recent significant development in the City includes:
• Issuance of 38 commercial and 229 residential building permits with a total construction valuation of $54.5
million. This includes major redevelopment of The Outlet Collection Seattle (formerly SuperMall of the Great
Northwest), construction of the new Trades Building and Student Life Building on the Green River Community
College campus, the Landmark Building in downtown Auburn, the HCSA regional hospital laundry processing
facility, and purchase of the Auburn Regional Medical Center by MultiCare. As the pace of the economic
recovery strengthens, the numbers of commercial and residential building permits and commercial transactions
are expected to increase.
• Completion of the A Street NW Extension project and continued construction of the M Street SE Grade
Separation project. Both projects represent significant investments in the City’s transportation infrastructure
and will serve to help to improve local transportation mobility and vehicular and pedestrian safety.
• Obtained funding from the King County Flood Control District and completed the removal of the temporary
flood control barriers along the Green River.
In conclusion, the City continues to closely monitor its financial performance and will proactively adjust its current
expenditure budget as needed in order to live within its means. While the pace of the economic recovery is gradually
improving, short-term challenges to the City’s overall financial condition remain. These challenges include a gradual
but slow growth in general economic conditions and continued austerity measures at the State and Federal level, both
of which may affect the amount of revenues that are available for local services. In the longer term, the City’s
financial performance is expected to continue to improve as the combined effects of a strengthening economic
recovery and a series of community investments are expected to take hold.
City of Auburn: 2012 CAFR Management’s Discussion and Analysis
31
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: 2012 CAFR Management’s Discussion and Analysis
32
City of Auburn: 2012 CAFR Basic Financial Statements
33
GOVERNMENT-WIDE FINANCIAL STATEMENTS
The City presents two government-wide financial statements.
The Statement of Net Position
This statement provides information all on city assets and liabilities, with the difference between
the two reported as net position.
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: 2012 CAFR Basic Financial Statements
34
City of Auburn: 2012 CAFR Basic Financial Statements
35
Governmental Business-Type
Activities Activities Total
ASSETS:
Cash and Cash Equivalents (Note 3)43,209,699$ 29,355,389$ 72,565,088$
Receivables
Taxes 459,115 - 459,115
Customer Accounts 266,020 5,330,997 5,597,017
Other Receivables 2,035,306 - 2,035,306
Special Assessments 537,476 - 537,476
Due From Other Governmental Units (Note 6)1,800,074 799,036 2,599,110
Internal Balances 440,896 (440,896) -
Materials and Supplies Inventory 153,334 173,616 326,950
Restricted Assets:
Temporarily Restricted:
Cash and Cash Equivalents (Note 3)7,359,993 5,511,779 12,871,772
Due From Other Governmental Units (Note 6)3,980,584 - 3,980,584
Permanently Restricted:
Cash and Cash Equivalents (Note 3)1,475,580 - 1,475,580
Prepaids 1,463,820 - 1,463,820
Long-Term Contracts and Notes 541,569 938,400 1,479,969
Net Pension Asset (Note 10)289,997 - 289,997
Investment in Joint Ventures (Note 15)33,532,286 - 33,532,286
Depreciable Capital Assets (Net of Accumulated Depreciation) (Note 7)247,379,653 176,819,916 424,199,569
Non-Depreciable Capital Assets (Note 7)138,851,247 31,710,230 170,561,477
Total Assets 483,776,649 250,198,467 733,975,116
LIABILITIES:
Accounts Payable 5,865,937 2,818,731 8,684,668
Other Liabilities Payable 362,974 - 362,974
Payable From Restricted Assets:
Accrued Interest - 1,340,905 1,340,905
Deposits - 154,257 154,257
Unearned Revenue 1,507,438 900,874 2,408,312
Bonds and Other Debt Payable:
Due Within One Year (Note 9)2,499,985 2,436,341 4,936,326
Due in More Than One Year (Note 9)30,783,566 33,679,056 64,462,622
Due to Other Governmental Units:
Due Within One Year (Note 9)808,650 - 808,650
Due in More Than One Year (Note 9)26,571,200 - 26,571,200
Net OPEB Obligation (Note 11)4,068,439 - 4,068,439
Total Liabilities 72,468,189 41,330,164 113,798,353
NET POSITION
Net Investment in Capital Assets 354,899,294 173,709,864 528,609,158
Restricted:
Capital Projects 10,603,982 - 10,603,982
Nonexpendable Permanent Endowment 1,475,580 - 1,475,580
Debt Service 50,439 4,306,893 4,357,332
Tourist Promotion 109,913 - 109,913
Drug Investigation and Enforcement 856,402 - 856,402
Community Development Block Grant Program 43,397 - 43,397
Central Business District Development 24,403 - 24,403
Rate Stabilization - 412,165 412,165
Unrestricted 43,245,050 30,439,381 73,684,431
Total Net Position 411,308,460$ 208,868,303$ 620,176,763$
The notes to the basic financial statements are an integral part of this statement.
Primary Government
City of Auburn, Washington
STATEMENT OF NET POSITION
December 31, 2012
City of Auburn: 2012 CAFR Basic Financial Statements
36
Charges Operating Capital
for Services Grants and Grants and
Expenses and Fines Contributions Contributions
FUNCTIONS / PROGRAMS:
Primary Government
Governmental Activities:
General Government 9,441,887$ 897,521$ 41,128$ 406,321$
Public Safety 27,339,301 1,016,191 1,738,152 -
Transportation 15,736,610 1,819,851 1,030,653 15,992,571
Physical Environment 2,535,877 36,766 - 684,239
Culture and Recreation 8,310,210 880,380 750,774 279,924
Economic Environment 2,914,335 3,266,188 - 45,201
Health and Human Resources 633,175 - - 427,528
Interest on Long-Term Debt 2,336,960 - - -
69,248,355 7,916,897 3,560,707 17,835,784
Business-Type Activities
Water 9,655,724 10,335,641 - 3,307,307
Sanitary Sewer 19,680,724 18,585,288 - 1,974,964
Storm Drainage 8,025,729 7,479,580 - 1,966,564
Solid Waste 11,305,322 11,515,360 97,052 -
Golf Course 1,912,174 1,371,363 - -
Nonmajor Business-Type Activities 1,954,104 1,423,456 - -
52,533,777 50,710,688 97,052 7,248,835
Total Primary Government 121,782,132$ 58,627,585$ 3,657,759$ 25,084,619$
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 Position
Net Position - Beginning
Net Position - Ending
The notes to the basic financial statements are an integral part of this statement.
Program Revenues
City of Auburn, Washington
STATEMENT OF ACTIVITIES
For the Year Ended December 31, 2012
Page 1 of 2
City of Auburn: 2012 CAFR Basic Financial Statements
37
Governmental Business-Type
Activities Activity Total
(8,096,917)$ -$ (8,096,917)$
(24,584,958) - (24,584,958)
3,106,465 - 3,106,465
(1,814,872) - (1,814,872)
(6,399,132) - (6,399,132)
397,054 - 397,054
(205,647) - (205,647)
(2,336,960) - (2,336,960)
(39,934,967) - (39,934,967)
- 3,987,224 3,987,224
- 879,528 879,528
- 1,420,415 1,420,415
- 307,090 307,090
- (540,811) (540,811)
- (530,648) (530,648)
- 5,522,798 5,522,798
(39,934,967) 5,522,798$ (34,412,169)$
14,970,136$ -$ 14,970,136$
16,679,278 - 16,679,278
3,281,816 - 3,281,816
8,856,498 - 8,856,498
2,141,620 - 2,141,620
4,679,333 - 4,679,333
178,618 82,903 261,521
291,210 1,781,726 2,072,936
207,521 (50) 207,471
48,660 - 48,660
(513,428) 513,428 -
50,821,262 2,378,007 53,199,269
10,886,295 7,900,805 18,787,100
400,422,165 200,967,498 601,389,663
411,308,460 208,868,303$ 620,176,763$
Changes in Net Assets
Net (Expense) Revenue and
Page 2 of 2
City of Auburn: 2012 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 accounting entity of
the City. As noted in the statements that follow, the general fund receives the bulk of its
revenues from local taxes, followed by State shared revenues, service charges, and other income.
The general fund is accounted for on a modified accrual basis. Biennial budgets are
adopted with appropriations lapsing at the end of each year of the biennium.
Arterial Street Fund
This fund is supported by the State of Washington’s motor vehicle fuel tax and by various
grants 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: 2012 CAFR Basic Financial Statements
39
Other Total
General Arterial Capital Governmental Governmental
Fund Street Improvement Funds Funds
ASSETS:
Cash and Cash Equivalents 22,196,230$ 442,024$ 6,671,471$ 10,248,657$ 39,558,382$
Receivables:
Taxes 459,115 - - - 459,115
Customer Accounts 51,125 161,952 - - 213,077
Other Receivables 1,747,276 - - 288,030 2,035,306
Special Assessments - - - 537,476 537,476
Interfund Receivable (Note 5)350,000 - - - 350,000
Inventories 127 - - - 127
Long-Term Notes and Contracts - - 541,569 - 541,569
Due From Other Governmental Units (Note 6)1,725,143 3,353,124 32,133 668,234 5,778,634
Prepaids 370,273 - - - 370,273
Total Assets 26,899,289$ 3,957,100$ 7,245,173$ 11,742,397$ 49,843,959$
LIABILITIES AND FUND BALANCES:
Liabilities:
Current Payables 2,491,513$ 1,384,994$ 291,129$ 950,052$ 5,117,688$
Customer Deposits 201,230 - - - 201,230
Other Liabilities Payable 169 - - - 169
Unearned Revenue 504,477 428,393 541,569 537,476 2,011,915
Total Liabilities 3,197,389 1,813,387 832,698 1,487,528 7,331,002
Fund Balances: (Note 1)
Nonspendable 370,400 - - - 370,400
Nonexpendable Permanent Endowment - - - 1,475,580 1,475,580
Restricted - 2,143,713 4,520,751 5,024,072 11,688,536
Committed - - - 3,258,257 3,258,257
Assigned 5,935,567 - 1,891,724 496,960 8,324,251
Unassigned 17,395,933 - - - 17,395,933
Total Fund Balances:23,701,900 2,143,713 6,412,475 10,254,869 42,512,957
Total Liabilities and Fund Balances 26,899,289$ 3,957,100$ 7,245,173$ 11,742,397$ 49,843,959$
Total governmental fund balances as reported on this statement 42,512,957$
Amounts reported for governmental activities in the statement of net position are different because:
Capital assets used in governmental activities are not financial resources and therefore not reported in the funds.379,970,275
Other long-term assets are not available to pay for current-period expenditures and therefore are deferred in the funds.
Prepaids 1,093,547
Unearned revenue beyond the city's 30-day measurable and available period 504,477
Net pension asset 289,997
1,888,021
Internal service funds are used by management to charge the cost of certain activities, such as insurance, fleet
maintenance and information technology, to individual funds. The assets and liabilities of these internal service 18,107,763
funds are included in governmental activities in the statement of net position.
Certain Joint Ventures activities do not use or provide current financial resources but increase net assets.6,152,436
Some liabilities are not due and payable in the current period and therefore are not reported in the funds.
Bonds and loans payable (31,395,623)
Financing cost for bond issue 64,017
Interest payable (158,350)
Net other postemployment obligations (4,068,439)
Compensated absences payable (1,764,597)
(37,322,992)
Net position of government activities as reported on the statement of net position 411,308,460$
The notes to the basic financial statements are an integral part of this statement.
City of Auburn, Washington
BALANCE SHEET
GOVERNMENTAL FUNDS
December 31, 2012
City of Auburn: 2012 CAFR Basic Financial Statements
40
Other Total
General Arterial Capital Governmental Governmental
Fund Street Improvement Funds Funds
REVENUES:
Taxes:
Property 12,866,488$ -$ -$ 2,121,148$ 14,987,636$
Retail Sales & Use 16,410,035 - - 269,243 16,679,278
Interfund Utility 2,812,985 - - 468,831 3,281,816
Utility 7,478,035 - - 1,378,463 8,856,498
Excise 304,753 - 1,758,724 78,143 2,141,620
Other - - - 56,734 56,734
Licenses and Permits 2,344,643 - - - 2,344,643
Intergovernmental 5,832,029 11,805,724 - 2,407,546 20,045,299
Charges for Services 2,432,736 48,841 - 1,525,185 4,006,762
Fines and Forfeitures 1,592,957 - - - 1,592,957
Special Assessments - - - 39,115 39,115
Investment Earnings 105,338 2,425 40,964 52,099 200,826
Miscellaneous 487,320 220,770 35,076 128,025 871,191
Total Revenues 52,667,319 12,077,760 1,834,764 8,524,532 75,104,375
EXPENDITURES:
Current:
General Government 8,761,452 - - - 8,761,452
Security of Persons and Property 23,784,304 - - 255,131 24,039,435
Physical Environment 2,526,526 - - - 2,526,526
Transportation 3,103,693 13,783,955 - 3,878,486 20,766,134
Economic Environment 2,265,824 - - 610,734 2,876,558
Health and Human Services 616,583 - - - 616,583
Culture and Recreation 7,228,288 - - 57 7,228,345
Debt Service:
Principal 198,679 80,383 - 940,075 1,219,137
Interest and Other Costs 536,874 6,833 - 1,702,151 2,245,858
Capital Outlay 99,333 - 741,587 3,166,098 4,007,018
Total Expenditures 49,121,556 13,871,171 741,587 10,552,732 74,287,046
Excess (Deficiency) of Revenues
Over (Under) Expenditures 3,545,763 (1,793,411) 1,093,177 (2,028,200) 817,329
OTHER FINANCING SOURCES (USES):
Sales of Capital Assets 800 - - - 800
Insurance Recoveries 291,210 - - - 291,210
Transfers In (Note 5)2,517,000 2,153,426 18,750 1,953,940 6,643,116
Transfers Out (Note 5)(3,928,368) - (863,939) (2,212,790) (7,005,097)
Total Other Financing Sources and Uses (1,119,358) 2,153,426 (845,189) (258,850) (69,971)
Net Change in Fund Balances 2,426,405 360,015 247,988 (2,287,050) 747,358
Fund Balances - Beginning 21,275,495 1,783,698 6,164,487 12,541,919 41,765,599
Fund Balances - Ending 23,701,900$ 2,143,713$ 6,412,475$ 10,254,869$ 42,512,957$
The notes to the basic 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, 2012
City of Auburn: 2012 CAFR Basic Financial Statements
41
Net change in fund balances per the Statement of Revenues, Expenditures and Changes in Fund Balance 747,358$
Amount reported as change in net position 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 ($22,065,723)
exceeded depreciation ($15,670,827) in the current period.6,394,896
Certain Capital and Joint Venture activities do not use or provide current financial resources
but decrease net position.(1,760,611)
Governmental funds report sales of assets as other financing sources while the Statement of Activities
reports only the gain or loss on sale of capital assets.177,506
Revenues in the Statement of Activities that do not provide current financial resources
are not reported as revenues in the funds:
Unearned revenue (827,612)
Amortization of bond premium 37,868
Investment interest receivable (1,817)
(791,561)
Developer contributions and annexation of infrastructure assets are reported as revenue in the statement
of activities, but do not provide current financial resources and are not reported as fund revenue.5,781,486
Repayment of the principal of long-term debt consumes the current financial resources of
governmental funds but has no effect on the net position. 1,027,096
Internal service funds are used by management to charge the costs of certain activities,
such as insurance and fleet maintenance, to individual funds. The net revenue (expense)
of certain internal service funds is reported with governmental activities.307,645
Some expenses reported in the Statement of Activities do not require the use of current
financial resources and therefore are not reported as expenditures in governmental funds.
Amortization of debt issue costs (15,969)
Amortization of prepaids (109,355)
Change in accrued interest payable (822)
Change in net pension obligation or asset 16,224
Change in net other postemployment benefits (972,272)
Change in compensated absences payable 84,674
(997,520)
Change in net position on the Statement of Activities 10,886,295$
The notes to the basic 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, 2012
City of Auburn: 2012 CAFR Basic Financial Statements
42
Variance with
Final Final Budget
Original Adopted Actual Positive
(GAAP Basis)(GAAP Basis)Results (Negative)
REVENUES:
Taxes:
Property 12,162,565$ 12,562,565$ 12,866,488$ 303,923$
Retail Sales & Use 17,151,630 17,083,630 16,410,035 (673,595)
Interfund Utility 2,620,200 2,620,200 2,812,985 192,785
Utility 7,503,820 7,871,820 7,478,035 (393,785)
Excise 381,500 381,500 304,753 (76,747)
Licenses and Permits 1,129,000 1,129,000 2,344,643 1,215,643
Intergovernmental 3,756,285 3,740,833 5,832,029 2,091,196
Charges for Services 1,831,100 1,860,100 2,432,736 572,636
Fines and Forfeitures 2,208,500 1,499,800 1,592,957 93,157
Investment Earnings 115,000 115,000 89,805 (25,195)
Miscellaneous 351,200 352,700 487,320 134,620
Total Revenues 49,210,800 49,217,148 52,651,786 3,434,638
EXPENDITURES:
Current:
General Government 9,565,460 9,991,397 8,761,452 1,229,945
Security of Persons and Property 27,118,240 26,626,878 23,784,304 2,842,574
Physical Environment 2,567,000 2,836,870 2,526,526 310,344
Transportation 3,319,920 3,549,560 3,103,693 445,867
Economic Environment 2,249,430 2,372,134 2,265,824 106,310
Health and Human Services 721,920 758,583 616,583 142,000
Culture and Recreation 7,316,770 7,602,670 7,228,288 374,382
Debt Service 304,100 1,313,500 735,553 577,947
Capital Outlay 15,000 70,470 99,333 (28,863)
Total Expenditures 53,177,840 55,122,062 49,121,556 6,000,506
Excess (Deficiency) of Revenues
Over (Under) Expenditures (3,967,040) (5,904,914) 3,530,230 9,435,144
OTHER FINANCING SOURCES (USES):
Sales of Capital Assets - - 800 800
Insurance Recoveries 25,000 98,000 291,210 193,210
Transfers In (Note 5)17,000 17,000 17,000 -
Transfers Out (Note 5)(1,434,500) (3,830,500) (3,728,368) 102,132
Total Other Financing Sources and Uses (1,392,500) (3,715,500) (3,419,358) 296,142
Net Change in Fund Balances (5,359,540) (9,620,414) 110,872 9,731,286
Fund Balances - Beginning 10,487,938 16,238,070 16,238,070 -
Fund Balances - Ending 5,128,398$ 6,617,656$ 16,348,942$ 9,731,286$
RECONCILIATION OF PERSPECTIVE DIFFERENCE BETWEEN BUDGETARY INFORMATION AND GENERALLY ACCEPTED ACCOUNTING PRINCIPLES (GAAP):
The Cumulative Reserve Fund is combined withthe General Fund for purposes of GASB Statement 54 7,352,958
Fund Balance - Ending (GAAP)23,701,900$
The notes to the basic financial statements are an integral part of this statement.
Budget Amounts
For the Year Ended December 31, 2012
City of Auburn, Washington
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
GENERAL FUND
City of Auburn: 2012 CAFR Basic Financial Statements
43
Variance with
Final Final Budget
Original Adopted Actual Positive
(GAAP Basis)(GAAP Basis)Results (Negative)
REVENUES:
Intergovernmental 7,220,800$ 13,983,370$ 11,805,724$ (2,177,646)$
Charges for Services - - 48,841 48,841
Investment Earnings 4,000 4,000 2,425 (1,575)
Miscellaneous - 257,530 220,770 (36,760)
Total Revenues 7,224,800 14,244,900 12,077,760 (2,167,140)
EXPENDITURES:
Transportation 14,719,600 18,522,385 13,783,955 4,738,430
Debt Service
Principal 80,400 80,400 80,383 17
Interest and Other Costs 6,900 6,900 6,833 67
Total Expenditures 14,806,900 18,609,685 13,871,171 4,738,514
Excess (Deficiency) of Revenues
Over (Under Expenditures (7,582,100) (4,364,785) (1,793,411) 2,571,374
OTHER FINANCING SOURCES (USES):
Issuance of Debt 6,000,000 1,008,115 - (1,008,115)
Transfers In (Note 5)1,490,700 2,344,720 2,153,426 (191,294)
Total Other Financing Sources and Uses 7,490,700 3,352,835 2,153,426 (1,199,409)
Net Change in Fund Balances (91,400) (1,011,950) 360,015 1,371,965
Fund Balances - Beginning 265,018 1,783,698 1,783,698 -
Fund Balances - Ending 173,618$ 771,748$ 2,143,713$ 1,371,965$
The notes to the basic financial statements are an integral part of this statement.
Budget Amounts
For the Year Ended December 31, 2012
City of Auburn, Washington
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
ARTERIAL STREET FUND
City of Auburn: 2012 CAFR Basic Financial Statements
44
City of Auburn: 2012 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: 2012 CAFR Basic Financial Statements
46
Governmental
ActivitiesNon-Major Total
Sanitary Storm Solid Golf Enterprise Enterprise InternalWaterSewerDrainageWasteCourseFundsFundsService Funds
ASSETS:
Current Assets
Cash and Cash Equivalents 9,097,192$ 10,049,455$ 7,954,723$ 619,337$ 486,963$ 1,147,719$ 29,355,389$ 12,486,890$
Restricted Cash:
Bond Payments 1,282,185 448,108 473,264 - - - 2,203,557 -
Customer Deposits 14,746 91,391 - - - 48,120 154,257 -
Other 1,225,687 514,590 1,413,688 - - 3,153,965 -
Customer Accounts 921,837 2,108,360 923,999 1,367,587 9,214 - 5,330,997 52,943
Due From Other Governmental Units - - 705,853 54,268 - 38,915 799,036 2,024
Inventories 147,520 6,479 5,533 - - 14,084 173,616 153,207
Total Current Assets 12,689,167 13,218,383 11,477,060 2,041,192 496,177 1,248,838 41,170,817 12,695,064
Noncurrent Assets
Long-Term Contracts and Notes - 938,400 - - - - 938,400 -
Capital Assets:
Land 897,971 1,695,023 5,686,254 - 2,229,636 3,996,179 14,505,063 -
Water Rights 5,196,600 - - - - - 5,196,600 -
Buildings and Equipment 2,463,741 1,171,259 201,254 496,617 6,620,690 3,665,664 14,619,225 17,177,507
Improvements Other Than Buildings 96,250,763 87,643,097 55,581,417 - 3,023,053 9,719,313 252,217,643 72,581
Construction in Progress 9,189,882 1,694,876 1,083,761 - - 40,048 12,008,567 -
Less: Accumulated Depreciation (40,620,223) (21,312,578) (17,792,199) (355,473) (3,226,732) (6,709,747) (90,016,952) (10,989,463)
Total Capital Assets (Net of A/D)73,378,734 70,891,677 44,760,487 141,144 8,646,647 10,711,457 208,530,146 6,260,625
Total Noncurrent Assets 73,378,734 71,830,077 44,760,487 141,144 8,646,647 10,711,457 209,468,546 6,260,625
Total Assets 86,067,901 85,048,460 56,237,547 2,182,336 9,142,824 11,960,295 250,639,363 18,955,689
LIABILITIES:
Current Liabilities:
Current Payables 839,004 423,363 393,826 1,022,704 55,126 84,708 2,818,731 748,249
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 158,980 97,848 149,928 23,156 43,928 13,671 487,511 139,092
Revenue Bonds Payable - Current 545,133 141,162 198,705 - - - 885,000 -
General Obligation Bonds Payable - Current - - - - 225,000 115,000 340,000 -
Payable From Restricted Assets:-
Accrued Interest 749,850 316,496 274,559 - - - 1,340,905 -
Deposits 14,746 91,391 - - - 48,120 154,257 -
Total Current Liabilities 2,743,281 1,358,522 1,017,018 1,045,860 674,054 261,499 7,100,234 890,566
Noncurrent Liabilities
Unearned Revenue 42,200 162,203 597,204 - 99,267 - 900,874 -
Employee Leave Benefits 55,158 33,948 52,017 8,034 15,241 4,743 169,141 48,256
Loans Payable 3,145,925 3,531,717 - - - - 6,677,642 -
Revenue Bonds Payable 12,362,304 5,182,577 4,606,820 - - - 22,151,701 -
General Obligation Bonds Payable - - - - 3,297,885 1,382,687 4,680,572 -
Total Noncurrent Liabilities 15,605,587 8,910,445 5,256,041 8,034 3,412,393 1,387,430 34,579,930 48,256
Total Liabilities 18,348,868 10,268,967 6,273,059 1,053,894 4,086,447 1,648,929 41,680,164 938,822
NET POSITION:
Invested in Capital Assets, Net of Related Debt 56,889,804 61,837,121 40,504,264 141,144 5,123,761 9,213,770 173,709,864 6,260,625
Restricted for:
Debt Service 2,507,872 873,536 925,485 - - - 4,306,893 -
Rate Stabilization - - 412,165 - - - 412,165 -
Unrestricted 8,321,357 12,068,836 8,122,574 987,298 (67,384) 1,097,596 30,530,277 11,756,242
Total Net Position 67,719,033$ 74,779,493$ 49,964,488$ 1,128,442$ 5,056,377$ 10,311,366$ 208,959,199$ 18,016,867$
Adjustment to reflect the consolidation
of internal service funds related to
enterprise funds (90,896) Net assets of business-type activities 208,868,303$
The notes to the basic financial statements are an integral part of this statement.
City of Auburn, WashingtonSTATEMENT OF NET POSITIONPROPRIETARY FUNDSDecember 31, 2012
Enterprise Funds
City of Auburn: 2012 CAFR Basic Financial Statements
47
Governmental
Activities
Non-Major Total
Sanitary Storm Sold Golf Enterprise Enterprise Internal
Water Sewer Drainage Waste Course Funds Funds Service Funds
OPERATING REVENUES:
Charges of Services 10,335,641$ 18,585,288$ 7,479,580$ 11,515,360$ 1,126,173$ 850,984$ 49,893,026$ 10,569,144$
Interest - - - - - 607 607 -
Other Operating Revenue - - - - 245,190 571,865 817,055 276,588
Total Operating Revenue 10,335,641 18,585,288 7,479,580 11,515,360 1,371,363 1,423,456 50,710,688 10,845,732
OPERATING EXPENSES:
Operations & Maintenance 3,500,564 13,841,985 3,123,618 9,708,125 1,139,372 637,368 31,951,032 8,947,377
Administration 2,503,885 1,956,954 2,641,157 737,430 226,431 760,341 8,826,198 889,105
Depreciation / Amortization 2,171,770 1,746,409 1,456,342 18,819 312,871 464,811 6,171,022 1,311,761
Other Operating Expenses 1,202,664 1,499,459 704,221 840,948 55,876 11,593 4,314,761 -
Total Operating Expenses 9,378,883 19,044,807 7,925,338 11,305,322 1,734,550 1,874,113 51,263,013 11,148,243
Operating Income (Loss)956,758 (459,519) (445,758) 210,038 (363,187) (450,657) (552,325) (302,511)
NON-OPERATING REVENUE (EXPENSE):
Interest Revenue 27,209 32,756 18,299 872 1,252 2,515 82,903 25,864 Other Non-Operating Revenue 725,905 111,224 803,570 156,851 9,846 71,382 1,878,778 43,601
Gain on Sale of Capital Assets - - - - - (50) (50) 29,215
Interest Expense (274,449) (102,869) (99,496) - (177,624) (79,991) (734,429) -
Other Non-Operating Expenses (2,392) (1,069) (895) - - - (4,356) - Total Non-Operating Revenue (Expense)476,273 40,042 721,478 157,723 (166,526) (6,144) 1,222,846 98,680
Income (Loss) Before Contributions & Transfers 1,433,031 (419,477) 275,720 367,761 (529,713) (456,801) 670,521 (203,831)
Capital Contribution 3,307,307 1,974,964 1,966,564 - - - 7,248,835 130,944
Transfers In (Note 5)- - - - 441,128 222,300 663,428 500,340
Transfers Out (Note 5)(50,000) (50,000) (50,000) - - - (150,000) (651,787)
Change in Net Position 4,690,338 1,505,487 2,192,284 367,761 (88,585) (234,501) 8,432,784 (224,334)
Total Net Position Beginning 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
Total Net Position End of Year 67,719,033$ 74,779,493$ 49,964,488$ 1,128,442$ 5,056,377$ 10,311,366$ 208,959,199$ 18,016,867$
Change in net position from this statement 8,432,784
Adjustment to reflect the consolidation of internal service fund
activities related to enterprise funds (531,979)
Change in net position of business-type activities 7,900,805$
The notes to the basic financial statements are an integral part of this statement.
City of Auburn, Washington
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION
PROPRIETARY FUNDS
For the Year Ended December 31, 2012
Enterprise Funds
City of Auburn: 2012 CAFR Basic Financial Statements
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Page 1 of 2
Government
Non Major Activities
Sanitary Storm Solid Golf Enterprise Internal
Water Sewer DrainageWaste Course Funds Total Service Funds
CASH FLOWS FROM OPERATING ACTIVITIES:
Cash Received from Users 10,303,788$ 18,496,037$ 7,411,067 11,349,697$ 1,381,520$ 1,407,720$ 50,349,829$ 10,947,096$
Cash Paid to Suppliers (3,018,078) (13,903,373) (3,157,264) (9,727,672) (551,718) (716,677) (31,074,782) (6,559,853)
Cash Paid for Taxes (1,202,664) (1,499,459) (704,221) (840,949) (55,876) (11,593) (4,314,762) (3,146)
Cash Paid for Inventory 39,766 668 1,766 - - (3,871) 38,329 (35,178)
Cash Paid to Employees (2,998,395) (1,973,607) (2,731,664) (568,336) (831,491) (678,671) (9,782,164) (3,377,254)
Other Cash Received - - - 192 15,643 - 15,835 -
Other Cash Paid - - (705,853) - - - (705,853) -
Net Cash Provided (Used) by Operating Activities 3,124,417 1,120,266 113,831 212,932 (41,922) (3,092) 4,526,432 971,665
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:
Operating Grant Received - 125,715 444,779 140,272 9,846 38,915 759,527 14,785
Other Non-Operating Gain 515,264 1,230 5,196 760 - 17,288 539,738 3,275
Transfers In - - - - 441,128 222,300 663,428 500,340
Transfers Out (50,000) (50,000) (50,000) - - - (150,000) (651,787)
Net Cash Provided (Used) by Noncapital Financing Activities 465,264 76,945 399,975 141,032 450,974 278,503 1,812,693 (133,387)
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES:
Proceeds from Sale of Equipment - - - - - - - 208,038
Purchase of Capital Assets (10,109,087) (2,101,205) (1,063,552) - - (140,966) (13,414,810) (1,914,942)
Contributed Capital 476,710 292,616 583,994 - - - 1,353,320 -
Capital Grants - - 735,148 - - (38,915) 696,233 -
Proceeds from Other Governments 200,306 45,000 63,226 - - - 308,532 15,171
Proceeds from Insurance Settlement 10,335 - - - - - 10,335 10,370
Principal Payment on Debt (661,267) (288,262) (79,300) - (215,000) (105,000) (1,348,829) -
Interest Payment on Debt (305,666) (110,335) (110,241) - (177,719) (72,741) (776,702) -
Net Cash Provided (Used) for Capital and Related Financing Activities (10,388,669) (2,162,186) 129,275 - (392,719) (357,622) (13,171,921) (1,681,363)
CASH FLOW FROM INVESTING ACTIVITIES:
Proceeds from Sale of Investments 2,004,940 1,996,562 - - - - 4,001,502 2,006,120
Interest Received 33,925 32,856 18,299 872 1,252 17,694 104,898 27,503
Net Cash Provided (Used) in Investing Activities 2,038,865 2,029,418 18,299 872 1,252 17,694 4,106,400 2,033,623
Net Increase (Decrease) in Cash and Cash Equivalents (4,760,123) 1,064,443 661,380 354,836 17,585 (64,517) (2,726,396) 1,190,538
Cash and Cash Equivalents - Beginning of Year 16,379,933 10,039,101 9,180,295 264,501 469,378 1,260,356 37,593,564 11,296,352
Cash and Cash Equivalents - End of Year 11,619,810$ 11,103,544$ 9,841,675 619,337$ 486,963$ 1,195,839$ 34,867,168$ 12,486,890$
CASH AT END OF YEAR CONSISTS OF:
Cash and Cash Equivalents 9,097,192 10,049,455 7,954,723 619,337 486,963 1,147,719 29,355,389 12,486,890
Restricted Cash - Bond Payments 1,282,185 448,108 473,264 - - - 2,203,557 -
Restricted Cash - Customer Deposits 14,746 91,391 - - - 48,120 154,257 -
Restricted Cash - Other 1,225,687 514,590 1,413,688 - - - 3,153,965 -
Total Cash 11,619,810$ 11,103,544$ 9,841,675 619,337$ 486,963$ 1,195,839$ 34,867,168$ 12,486,890$
The notes to the basic 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, 2012
City of Auburn: 2012 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)956,758$ (459,519)$ (445,758) 210,038$ (363,187)$ (450,657)$ (552,325)$ (302,511)$
ADJUSTMENTS TO RECONCILE OPERATING INCOME TO
NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES:
Depreciation 2,171,770 1,746,409 1,456,342 18,819 312,871 464,811 6,171,022 1,311,761
Asset (Increases) Decreases:
Accounts Receivable (25,966) (136,588) (68,513) (165,663) 10,157 - (386,573) 101,364
Miscellaneous A/R Revenue - - (705,853) - - - (705,853) -
Inventory 39,766 668 1,766 - - (3,871) 38,329 (35,178)
Liability Increases (Decreases):
Accounts & Vouchers Payable (29,066) (86,975) (130,200) 153,224 (16,350) 19,529 (89,838) (118,261)
Deposits Payable (5,887) 47,337 - - - (15,736) 25,714 -
Wages & Benefits Payable 15,677 8,494 2,025 (3,130) 1,047 (2,501) 21,612 7,023
Compensated Absences Payable 1,365 440 4,022 (356) (2,103) (14,667) (11,299) 7,467
Unearned Revenue - - - - 15,643 - 15,643 -
Total Adjustments 2,167,659 1,579,785 559,589 2,894 321,265 447,565 5,078,757 1,274,176
Net Cash Provided (Used) by Operating Activities 3,124,417$ 1,120,266$ 113,831 212,932$ (41,922)$ (3,092)$ 4,526,432$ 971,665$
SCHEDULE OF NONCASH INVESTING, CAPITAL AND
FINANCING ACTIVITIES
Capital Assets Acquired by Contributed Capital 2,830,597 1,682,348 1,382,570 - - - 5,895,515 130,944
Total Non Cash Investing, Capital and Financing Activities 2,830,597$ 1,682,348$ 1,382,570 -$ -$ -$ 5,895,515$ 130,944$
The notes to the basic financial statements are an integral part of this statement.
PROPRIETARY FUNDS
City of Auburn, Washington
STATEMENT OF CASH FLOWS
For the Fiscal Year Ended December 31, 2012
City of Auburn: 2012 CAFR Basic Financial Statements
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City of Auburn: 2012 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: 2012 CAFR Basic Financial Statements
52
Fire Relief
Pension Agency
Trust Fund Fund
ASSETS:
Cash and Cash Equivalents 2,472,663$ 1,231,749$
Investments - U.S. Government Securities 85,936 -
Receivables:
Customer Accounts - 1,054
Interest 659 -
Total Assets 2,559,258 1,232,803
LIABILITIES:
Current Payables 7,414 291,214
Due to Other Governmental Units - 941,589
Total Liabilities 7,414 1,232,803
NET POSITION
Held in Trust for Pension Benefits and Other Purposes 2,551,844$ -$
The notes to the financial statements are an integral part of this statement.
City of Auburn, Washington
STATEMENT OF FIDUCIARY NET POSITION
FIDUCIARY FUNDS
December 31, 2012
City of Auburn: 2012 CAFR Basic Financial Statements
53
Fire Relief
Pension
Trust fund
ADDITIONS:
Fire Insurance Premiums - Intergovernmental Revenue 63,205$
Investment Earnings 6,028
Total Additions 69,233
DEDUCTIONS:Benefit Payments 169,095
Professional Services 514
Administrative Expenses 14,311
Total Deductions 183,920
Change in Net Postion (114,687)
Net Position - Beginning 2,666,531
Net Position - Ending 2,551,844$
The notes to the financial statements are an integral part of this statement.
City of Auburn, Washington
STATEMENT OF CHANGES IN FIDUCIARY NET POSTION
FIDUCIARY FUNDS
For the Year Ended December 31, 2012
City of Auburn: 2012 CAFR Basic Financial Statements
54
City of Auburn: 2012 CAFR Notes to the Financial Statements
55
City of Auburn
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2012
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 .............................................................................................. 59
E. Assets, Liabilities and Fund Balance ..............................................................................................61
1. Deposits and Investments ......................................................................................................61
2. Receivables ...........................................................................................................................61
3. Interfund Receivables and Payables .......................................................................................61
4. Amounts Due From Other Governmental Units.................................................................... 62
5. Inventories and Prepaid Expenses ......................................................................................... 62
6. Restricted Assets .................................................................................................................. 62
7. Interfund Transactions ......................................................................................................... 62
8. Capital Assets ...................................................................................................................... 62
9. Compensated Absences ........................................................................................................ 63
10. Unearned Revenues ............................................................................................................. 63
11. Fund Balance Components – Proprietary Funds .................................................................... 63
12. Fund Balance Components – Governmental Funds ............................................................... 63
F. Revenues, Expenditures and Expenses ......................................................................................... 65
G. Estimates ................................................................................................................................... 65
Note 2 – Stewardship, Compliance and Accountability .................................................................................... 65
Note 3 – Deposits and Investments ................................................................................................................. 65
Note 4 – Property Taxes ................................................................................................................................. 68
Note 5 – Interfund Activity ............................................................................................................................. 70
Note 6 – Due From Other Governmental Units................................................................................................71
Note 7 – Capital Assets and Depreciation ........................................................................................................ 72
Note 8 – Capital Lease Obligation ................................................................................................................... 73
Note 9 – Long-Term Debt ............................................................................................................................... 74
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 .............................................................................................................. 92
Note 14 – Cemetery Endowed Care Fund ......................................................................................................... 92
Note 15 – Joint Ventures / Related Party .......................................................................................................... 93
Note 16 – Jointly Governed Organization / Related Party ................................................................................. 96
Note 17 – Contingencies and Litigation ............................................................................................................. 97
Note 18 – Risk Management and Insurance....................................................................................................... 97
Note 19 – Subsequent Event ............................................................................................................................. 98
City of Auburn: 2012 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 Statements No. 34 and 61, the Valley Communications Center and South Correctional Entity
Facility (SCORE) are included in the accompanying government-wide statement of net position 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 position 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 position 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 position, statement of revenues, expenses, and changes in net
position 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.
The Statement of Net Position reports the assets and liabilities of the primary government. The net position section of
this statement represents the residual amount of assets and their associated liabilities. The net position section is
divided into three categories. The first category is Net Investment in Capital Assets, 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 Position, which includes those assets, net of their
City of Auburn: 2012 CAFR Notes to the Financial Statements
57
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 Position, and this
represents net position 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 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 “unearned 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
City of Auburn: 2012 CAFR Notes to the Financial Statements
58
subsequent year because of when the underlying transaction occurred and the resources are considered to be
measurable and available.
Grant Revenues – On cost reimbursement grants, 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 position. Long-term liabilities, including
compensated absences not currently due and payable, are also reported on the government-wide statement of net
position.
The accrual basis of accounting is followed in all proprietary, agency, and pension trust funds. Under the accrual basis
of accounting, revenues are recognized when earned and expenses are recorded when incurred.
The three broad fund categories and nine fund types presented in this report are described below:
1. Governmental Fund Types
All governmental funds are accounted for on a spending or “financial flow” measurement focus. This means that
only current assets and current liabilities generally are included on their balance sheets. Their reported fund
balance (net current assets) is considered a measure of “available spendable resources”. Governmental fund
operating statements focus on measuring cash flows rather than net income; they present increases (revenues and
other financing sources) and decreases (expenditures and other financing uses) in net current assets.
a. General fund – This fund is used to account for all financial resources and transactions of the City not
accounted for in another fund, as required. The general fund is always considered a major fund.
b. Special Revenue funds – These funds are used to account for the proceeds of specific revenue sources
(other than major capital projects) that are legally restricted to expenditures for specified purposes. One
special revenue fund is considered major: the arterial street fund. This fund is supported by the State of
Washington’s motor vehicle fuel tax and by various grants and is used for major street construction.
c. Debt Service funds – These funds account for the accumulation of resources for, and the payment of,
general long-term and special assessment debt 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 Position. Under the accrual basis of accounting, revenues are
City of Auburn: 2012 CAFR Notes to the Financial Statements
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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.
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.
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
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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.
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 54,612,340$ 4,340,222$ 58,952,562$
Total Governmental Funds 54,612,340 4,340,222 58,952,562
Special Revenue Funds:
Local Street 2,000,000$ 1,021,110$ 3,021,110$
Arterial Street 14,806,900 3,802,785 18,609,685
Hotel/Motel Tax 85,000 - 85,000
Arterial Street Preservation 1,500,000 251,500 1,751,500
Drug Forfeiture Fund 298,230 30,000 328,230
Housing and Community Development 439,220 41,030 480,250
Business Improvement Area 54,000 - 54,000
Cumulative Reserve - 226,520 226,520
Mitigation Fees 1,120,700 1,333,640 2,454,340
Total Special Revenue Funds 20,304,050 6,706,585 27,010,635
Total Budgeted Funds 74,916,390$ 11,046,807$ 85,963,197$
ORIGINAL AND SUPPLEMENTAL APPROPRIATIONS
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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, 2012, the Washington State Local
Government Investment Pool (LGIP) was holding $80,248,588 in short-term investments. This amount is
classified on the Statement of Net Position 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.
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 unearned, 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.
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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 ($154,257), accrued interest payable ($1,340,905), bond proceeds restricted
for construction costs ($11,376,610), nonexpendable permanent endowment for cemetery ($1,475,580) and due
from other governmental units ($3,980,584).
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” in governmental fund
types and as other items in proprietary fund types.
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 position. 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
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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 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 position 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. Unearned 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 position is generally restricted in connection with restricted assets or for legal segregation.
These restrictions are identified on the statement of net position of each fund type.
The City holds and administers a Utility System Rate Stabilization Fund. The City may, by ordinance, withdraw
from the Rate Stabilization Fund for inclusion in the net revenue of the Utility System at any time for any current
fiscal year of the Utility System, except that the total amount withdrawn from the Rate Stabilization Fund in any
fiscal year may not exceed the total debt service of the Utility System in that year.
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.
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• 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 by ordinance or resolution 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. It is the City’s policy that intent of use can
be assigned by City Council or by a designated official for that purpose. For governmental funds,
other than the General Fund, this is the residual amount within the fund that is not restricted or
committed.
• 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, 2012:
Arterial Capital Other Total
General Street Improvement Governmental Governmental
Fund Fund Fund Funds Funds
Nonspendable
Prepaids and Inventory 370,400$ -$ -$ -$ 370,400$
Cemetery Endowment - - - 1,475,580 1,475,580
Total Nonspendable 370,400 - - 1,475,580 1,845,980
RestrictedMajor Street Construction - 2,143,713 - - 2,143,713
REET 1 Allowable Projects - - 2,458,461 - 2,458,461
REET 2 Allowable Projects - - 2,062,290 - 2,062,290 Parks and Trails Construction Projects - - - 192,711 192,711
Fenster Levee Setback - - - 160,177 160,177
Auburn Activity Center - - - 77,227 77,227
Downtown Infrastructure Improvements - - - 501,854 501,854
City Tourism Promotion - - - 109,913 109,913 Drug Investigation and Enforcement - - - 856,402 856,402
Community Development Block Grant Program - - - 43,397 43,397
Recreational Trail Development - - - 22,421 22,421 Downtown Business Area Improvements - - - 24,403 24,403
Street and Fire Service Mitigation Fees - - - 2,985,128 2,985,128
Debt Service - - - 50,439 50,439 Total Restricted - 2,143,713 4,520,751 5,024,072 11,688,536
CommittedLocal Street Improvements (Save our Streets)- - - 1,581,264 1,581,264
Aterial Street Preservation - - - 1,676,993 1,676,993
Total Committed - - - 3,258,257 3,258,257 Assigned
Appropriations Over Estimated Revenue 5,935,567 - - - 5,935,567
Arterial Street Preservation Fund - - - 3,308 3,308 Downtown and Sidewalk Improvements - - 1,891,724 - 1,891,724
Drug Investigation and Enforcement - - - 1,672 1,672
Community Development Block Grant Program - - - 15 15 Recreational Trail Development - - - 29 29
Downtown Business Area Improvements - - - 53 53 Local Street Improvements - - - 154,219 154,219
School Administration Fees - - - 76,051 76,051
Cemetery Capital Enhancement and Maintenance - - - 110,336 110,336 Downtown Infrastructure Improvements - - - 105,122 105,122
Debt Service - - - 46,155 46,155
Total Assigned 5,935,567 - 1,891,724 496,960 8,324,251 Unassigned
Unassigned 17,395,933 - - - 17,395,933 Total Unassigned 17,395,933 - - - 17,395,933
Total Fund Balances 23,701,900$ 2,143,713$ 6,412,475$ 10,254,869$ 42,512,957$
Governmental Fund Balances
December 31, 2012
Major
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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 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.
NOTE 3 – DEPOSITS AND INVESTMENTS
At December 31, 2012, the carrying amount of the City’s cash demand deposits with Key Bank totaled $10,275,464
while the bank balance was $10,342,860. In addition, there was $92,800 in petty cash ($10,000 in the Drug
City of Auburn: 2012 CAFR Notes to the Financial Statements
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Forfeiture Fund to be used for enforcements purposes, $7,300 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 statement of net
position at fair value. Investments that were not at par value (cost) as of December 31, 2012 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 2012, the net decrease in the fair value of investments being held for more than one year is $3,833 at year-
end.
As of December 31, 2012, the City had the following investments and maturities:
Fair Less than 1 to 2 2 to 3 Greater than
Investment Type Value 1 year years years 3 years
State investment pool 80,248,588$ 80,248,588$ -$ -$ -$
US Treasuries 85,936 - - - 85,936
80,334,524$ 80,248,588$ -$ -$ 85,936$
Reconciliation to government-
wide statement of net position:
Total investments above 80,334,524$
Plus: cash in checking 10,275,464
Plus: petty cash 92,800
Less: cash investments in fiduciary funds (3,790,348)
Total cash and investments, government-
wide statement of net position 86,912,440$
Schedule of Investments by Maturities
As of December 31, 2012
Investment maturities
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Governmental Business-Type
Activities Activities Total
Cash and Cash Equivalents 43,209,699$ 29,355,389$ 72,565,088$
Temporarily Restricted:
Cash and Cash Equivalents 7,359,993 5,511,779 12,871,772
Permanently Restricted:
Cash and Cash Equivalents 1,475,580 - 1,475,580
52,045,272$ 34,867,168$ 86,912,440$
Reconciliation of Cash and Investments
Government-Wide Statement of Net Position
As of December 31, 2012
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
As of December 31, 2012, the City had investments in a limited number of investment instruments as follows:
• 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, 2012.
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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
Fiduciary Funds -$ 85,936$ 85,936$
Treasurer's Residual Funds 80,248,588 - 80,248,588
Total 80,248,588$ 85,936$ 80,334,524$
As of December 31, 2012
Schedule of Investments by Fund Category and Investment Type
NOTE 4 – PROPERTY TAXES
Property taxes received during tax year 2012 were $14,987,636 including collection of prior year delinquent
assessments. Property taxes assessed for collection in tax year 2012 were based on a regular tax levy of $1.93 per
$1,000 on a total 2011 assessed value of $7,199,853,130.
For levy year 2012, to be received in 2013, the City’s regular tax levy is $2.07 per $1,000 on a 2012 assessed valuation
of $6,909,168,076, as of December 31, 2012, for a total regular levy of $15,177,000. State law provides that debt
cannot be incurred in excess of the following percentages of the taxable property of the City.
1.50% of assessed value without a vote of the people
2.50% of assessed value with a vote of the people
The City has additional authority to incur the following debt as a percentage of total valuation.
2.50% of assessed value with a vote of the people, indebtedness is for utilities
2.50% of assessed value with a vote of the people, indebtedness is for parks, or open space development
At December 31, 2012, the debt limits for the City were as follows:
For Parks or
Without General For Open Space
a Vote Purposes Utilities Development TotalItem1.50%1.00%2.50%2.50%Capacity
Legal Limit 103,637,521$ 69,091,681$ 172,729,202$ 172,729,202$ 518,187,606$
Outstanding indebtedness (63,815,473) - - - (63,815,473)
Margin available 39,822,048$ 69,091,681$ 172,729,202$ 172,729,202$ 454,372,133$
With a Vote
City of Auburn: 2012 CAFR Notes to the Financial Statements
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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 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
$1,000 of value. If the taxes of all districts exceed this amount, each is proportionately reduced until the total is at
or below the 1% limit.
2. Washington State law in RCW 84.55.010 limits the annual growth of regular property taxes to the lesser of 1% or
the rate of inflation. With a vote of the majority of the voters within a taxing district, the 1% levy limitation can
be “lifted” and additional taxes may be levied
3. The City may voluntarily levy taxes below the legal limit.
Special levies approved by the voters are not subject to the above limitations.
Property taxes are recorded as receivable and offset by an unearned revenue account when levied. Since state law
allows for the sale of property for failure to pay taxes, no estimate of uncollectible taxes is made.
City of Auburn: 2012 CAFR Notes to the Financial Statements
70
NOTE 5 – INTERFUND ACTIVITY
The next two tables summarize interfund activity during 2012. The first table details transfers while the second lists
loan activity. Transfers are legally authorized transfers of resources from a fund receiving revenue to the fund through
which resources are to be expended. The principal purposes for interfund transfers include interfund subsidies,
transfers into capital project and debt service funds and transfers into internal service funds for interfund facility,
information services and equipment rental services:
Funds Transfer In Transfer Out
Governmental funds:
General 2,517,000$ 3,728,368$
General - Cumulative reserve - 200,000
Total general fund 2,517,000 3,928,368
Special revenue funds:
Local street fund 150,000 -
Arterial street fund 2,153,426 -
Mitigation fees - 2,180,490
Total special revenue funds 2,303,426 2,180,490
Debt service funds:
1998 library GO 286,900 -
2010 A&B Annex 1,289,587 -
2010 C&D Local Rev 194,827 -
LID guarantee - 10,000
Total debt service funds 1,771,314 10,000
Capital projects funds:
Capital Improvement Major 18,750 863,939
Park construction Non Maj 32,626 -
Total capital projects funds 51,376 863,939
Proprietary funds:
Water - 50,000
Sewer - 50,000
Storm drainage - 50,000
Cemetery 222,300 -
Golf course 441,128 -
Total proprietary funds 663,428 150,000
Internal service funds:
Facilities 300,000 644,787
Information services 100,170 -
Equipment rental 100,170 7,000
Total internal service funds 500,340 651,787
Permanent funds:
Cemetery endowed care - 22,300
Total 7,806,884$ 7,806,884$
All transfers are considered routine.
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 1/1/2012 New Loans Repayments 12/31/2012
Golf course fund General fund 350,000$ -$ -$ 350,000$
Total interfund loans 350,000$ -$ -$ 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: 2012 CAFR Notes to the Financial Statements
71
NOTE 6 – DUE FROM OTHER GOVERNMENTAL UNITS
As of December 31, 2012, the City had receivables due from other governmental units as follows:
General Fund:
Department of Justice 118,145$
King County - Real Estate Excise Taxes 254,689
King Conservation District - Farmer's Market 2,148
King County Sheriff's - Registered Sex Offender Grant 15,817
Muckleshoot Casino 182,594
WA State Military Department - EMPG Grant 15,152
Pierce County - Real Estate Excise Taxes 9,057
WA Auto Theft Prevention Authority - Auto Theft Prevention Grant 10,160
WA State Traffic Safety - Seat belt / DUI enforcement 2,230
WA State Treasurer - Sales Taxes 1,115,152
Total General Fund 1,725,143
Arterial Street Fund:
King County Department of Natural Resources & Parks 51,458
WA State Transportation Improvement Board - Arterial Street Imp.750,599
Port of Seattle 385,700
Muckleshoot Indian Tribe 40,239
WA Dept. of Transportation - Arterial street imp.2,125,128
Total Arterial Street Fund 3,353,124
Drug Forfeiture Fund:
VNET 19,665
Housing & Community Development:
U.S. Dept. of Housing - Community Development Block Grant 57,325
Municipal Park Construction:
Green River Community College 518,337
General Government Capital Improvements:
Pierce County - Real Estate Excise Taxes 32,133
Local Revitalization Fund:
Department of Commerce - Economic Development Administration 72,907
Storm Fund:
King County - Land/Flood Control 705,853
Solid Waste Fund:
Department of Ecology - ECPG Grant 1,673
King County - Local hazardous waste management grant 20,548
King County - Waste reduction and recycling grant 32,047
Total solid waste fund 54,268
Airport Fund
Federal Aviation Administration 38,915
Information Services Fund:
VRFA 2,024
Total 6,579,694$
Reconciliation to government-wide statement of net position:
Total above due from other governmental units 6,579,694
Amount due to fiduciary fund -
Total due from other governmental units,
6,579,694$
Due from Other Governmental Units
government-wide statement of net position
City of Auburn: 2012 CAFR Notes to the Financial Statements
72
NOTE 7 – CAPITAL ASSETS AND DEPRECIATION
Capital asset activity for the year ended December 31, 2012 is as follows:
Balance Decreases/Balance
1/1/12 Increases Adjustments 12/31/12
Governmental activities:
Capital assets, not being depreciated:
Land 109,603,713$ 1,013,194$ (217,000)$ 110,399,907$
Construction in progress 21,516,518 28,445,889 (21,511,067) 28,451,340
Total capital assets, not being depreciated 131,120,231 29,459,083 (21,728,067) 138,851,247
Capital assets, being depreciated:
Buildings 57,944,130 785,763 - 58,729,893
Improvements other than buildings 15,525,120 903,646 - 16,428,766
Machinery and equipment 19,970,573 2,026,968 (1,186,719) 20,810,822
Intangibles 1,095,684 11 (11) 1,095,684
Infrastructure 274,314,688 18,654,065 - 292,968,753
Total capital assets being depreciated 368,850,195 22,370,453 (1,186,730) 390,033,918
Less: accumulated depreciation for:
Buildings (10,374,886) (1,236,222) - (11,611,108)
Improvements other than buildings (9,981,782) (597,559) - (10,579,341)
Machinery and equipment (13,364,678) (1,533,449) 977,032 (13,921,095)
Intangibles (290,128) (59,045) - (349,173)
Infrastructure (92,637,235) (13,556,313) - (106,193,548)
Total accumulated depreciation (126,648,709) (16,982,588) 977,032 (142,654,265)
Total capital assets, being depreciated, net 242,201,486 5,387,865 (209,698) 247,379,653
Governmental activities capital assets, net 373,321,717$ 34,846,948$ (21,937,765)$ 386,230,900$
Business-type activities:
Capital assets, not being depreciated:
Land 14,505,063$ -$ -$ 14,505,063$
Water Rights - 5,196,600 - 5,196,600
Construction in progress 15,321,328 8,117,925 (11,430,686) 12,008,567
Total capital assets, not being depreciated 29,826,391 13,314,525 (11,430,686) 31,710,230
Capital assets, being depreciated:
Buildings 11,308,432 88,202 - 11,396,634
Improvements other than buildings 234,900,573 17,310,663 - 252,211,236
Machinery and equipment 3,220,812 27,621 (19,435) 3,228,998
Total capital assets being depreciated 249,429,817 17,426,486 (19,435) 266,836,868
Less: accumulated depreciation for:
Buildings (4,574,759) (300,977) - (4,875,736)
Improvements other than buildings (76,526,347) (5,795,722) - (82,322,069)
Machinery and equipment (2,764,208) (74,323) 19,384 (2,819,147)
Total accumulated depreciation (83,865,314) (6,171,022) 19,384 (90,016,952)
Total capital assets, being depreciated, net 165,564,503 11,255,464 (51) 176,819,916
Business-type activities capital assets, net 195,390,894$ 24,569,989$ (11,430,737)$ 208,530,146$
Schedule of Capital Asset Activity
City of Auburn: 2012 CAFR Notes to the Financial Statements
73
Depreciation/amortization expense was charged to functions/programs of the City as follows:
Governmental activities:
General government 1,263,621$
Public safety 425,252
Transportation 12,925,508
Physical environment -
Culture and recreation 1,056,446
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 1,311,761
Total depreciation/amortization expense - governmental activities 16,982,588$
Business-type activities:
Water 2,171,770$
Sanitary sewer 1,746,409
Storm water 1,456,342
Solid waste 18,819
Golf course 312,871
Airport 397,164
Cemetery 67,647
Total depreciation expense - business-type activities 6,171,022$
The 2012 total interest cost incurred for business-type activities was $1,485,473 of which $734,429 was charged to
expense and $751,044 capitalized.
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.
As of December 31, 2012, the gross value of the Auburn Theater facility acquired under the capital lease is $695,504.
Monthly lease payments of $6,259.82 plus annual inflation adjustments based on the U.S. CPI-W index are payable
through the end of the lease period on December 1, 2021. Interest on the lease was imputed at 5.89 percent.
Lease Payable
Theater
2013 75,118$
2014 75,118
2015 75,118
2016 75,118
2017 75,118
2018-2021 301,703
Total minimum lease payments 677,293
Less: Amounts representing interest (152,795)
Present value of future minimum lease payments 524,498$
Schedule of Future Minimum Lease Payments
City of Auburn: 2012 CAFR Notes to the Financial Statements
74
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, 2012 is $1,465,000.
• 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 $8,687,599. Five of the loans are for water and sewer
construction projects. The loans are being repaid from water and sewer fund revenues over a 20-year period that
begins upon each project completion (PWTF 1999, PWTF 2001, PWTF 2002, PWTF 2004, PWTF 2006). The other
loan is for arterial street improvements and is being repaid from arterial street fund revenues over a 20-year period
that began in 2009 upon project completion (PWTF 2008).
Compensated Absences are paid by those funds that have employees. These are mostly payable by the General fund
and enterprise funds.
City of Auburn: 2012 CAFR Notes to the Financial Statements
75
The following schedules summarize the long-term debt transactions of the City for the year ended December 31, 2012.
The first table summarizes all debt transactions for Auburn, while the second provides detailed information on all long-
term debt. Additional schedules reflect total annual debt service requirements to maturity and the reconciliation of
debt by fund type.
General
Obligation (1)Utility
Employee
Leave Benefit
Other Post
Employment
Benefits Premium
Financing
Costs
Due To Other
Governments Total
Long-term debt payable 12/31/11 37,782,720$ 31,055,303$ 2,697,105$ 3,096,167$ 882,779$ (512,747)$ 27,580,850$ 102,582,177$
Added - - 1,887,731 1,670,548 - - - 3,558,279
Retired (1,347,097) (1,028,829) (1,976,239) (698,276) (83,388) 41,610 (201,000) (5,293,219)
Long-term debt payable 12/31/12 36,435,623$ 30,026,474$ 2,608,597$ 4,068,439$ 799,391$ (471,137)$ 27,379,850$ 100,847,237$
(1) Includes capital leases
CHANGES IN LONG-TERM LIABILITES SUMMARY
Employee
Leave Benefits
Year Principal Interest Principal Interest Principal Interest Principal Principal (1)Interest
2013 2,073,650$ 3,495,405$ 45,439$ 29,679$ 1,689,213$ 1,266,854$ 1,936,674$ 5,744,976$ 4,791,938$
2014 2,141,500 3,423,436 48,188 26,930 1,719,213 1,232,140 67,192 3,976,093 4,682,506
2015 2,211,900 3,336,192 51,105 24,013 1,749,213 1,194,737 67,192 4,079,410 4,554,942
2016 2,075,150 3,247,736 54,197 20,921 1,789,213 1,149,511 67,192 3,985,752 4,418,168
2017 2,159,950 3,159,462 57,477 17,641 1,834,213 1,102,760 67,192 4,118,832 4,279,863
2018-2022 10,281,900 14,469,064 268,092 33,611 9,091,875 4,719,154 335,960 19,977,827 19,221,829
2023-2027 10,795,350 12,402,984 - - 8,404,275 2,932,105 67,196 19,266,821 15,335,089
2028-2032 11,754,750 9,682,589 - - 5,035,383 642,880 - 16,790,133 10,325,469
2033-2037 12,945,050 5,880,407 - - - - - 12,945,050 5,880,407
2038-2039 5,565,650 1,403,945 - - - - - 5,565,650 1,403,945
Totals 62,004,850$ 60,501,220$ 524,498$ 152,795$ 31,312,598$ 14,240,141$ 2,608,598$ 96,450,544$ 74,894,156$
(1)96,450,544$ Principal debt service requirements to maturity
4,068,439 Other Post Employment Benefits
799,391 Premium
(471,137) Financing Costs
100,847,237$ Long Term Liabilities 12/31/2012
Obligation Bonds Obligation Bonds/Loans Long-Term Debt
DEBT SERVICE REQUIREMENT TO MATURITY
General Capital Lease Utility Total
City of Auburn: 2012 CAFR Notes to the Financial Statements
76
Interest Maturity Original Principal Balance Balance Due Within
Issue Name Rates Date Amount Installments 12/31/11 Additions Reductions 12/31/12 One Year
GOVERNMENTAL DEBT
General Obligation Bonds:
LTGO 2010A (1)2.00-4.50%12/1/2018 4,385,000$ $510,000 - $270,000 3,185,000$ -$ (705,000)$ 2,480,000$ 720,000$
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 - $215,000 620,000 - (200,000) 420,000 205,000
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 30,490,000 - (905,000) 29,585,000 925,000
Capital Lease:
Auburn Avenue Theater 5.89%12/31/2021 695,504 $5,500 - $6,260 566,212 - (41,714) 524,498 45,439
Employee Leave Benefits:
Compensated absences - 2,029,152 1,412,540 (1,489,747) 1,951,945 1,449,163
Other Post Employment Benefits:
LEOFF 1 - 3,096,167 1,670,548 (698,276) 4,068,439 -
Public Works Trust Fund Loans:
PWTF 2008 0.50%7/1/2028 1,527,273 80,383 1,366,508 - (80,383) 1,286,125 80,383
Premium Related to Debt 230,108 - (37,868) 192,240 -
Financing Costs Related to Debt (272,226) - 15,969 (256,257) -
Total Governmental 34,212,777$ 37,505,921$ 3,083,088$ (3,237,019)$ 37,351,990$ 2,499,985$
BUSINESS-TYPE DEBT
General Obligation Bonds
GO refunding bond 2005 (1)4.00-4.50%12/1/2019 1,375,000$ $10,000 - $190,000 1,160,000$ -$ (105,000)$ 1,055,000$ 115,000$
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 - $245,000 925,000 - (215,000) 710,000 225,000
Total General Obligation Bonds 6,535,000 5,360,000 - (320,000) 5,040,000 340,000
Revenue Bonds:
Utility sys refunding bonds 2005 (1)3.00-4.75%11/1/2016 2,765,000 $45,000 - $355,000 1,635,000 - (305,000) 1,330,000 310,000
Utility sys bonds 2010 (1)3.00-6.40%12/1/2030 21,295,000 $575,000 - $1,720,000 21,295,000 - - 21,295,000 575,000
Total Revenue Bonds 24,060,000 22,930,000 - (305,000) 22,625,000 885,000
Employee Leave Benefits:
Compensated absences - 667,953 475,191 (486,492) 656,652 487,511
Public Works Trust Fund Loans:
PWTF 1999 1.00%7/1/2019 3,465,000 $182,368 1,458,947 - (182,368) 1,276,579 182,368
PWTF 2001 0.50%7/1/2021 4,290,405 $227,086 2,270,856 - (227,085) 2,043,771 227,086
PWTF 2002 1.00%7/1/2022 641,250 $26,114 287,259 - (26,114) 261,145 26,114
PWTF 2004 0.50%7/1/2024 2,049,036 $107,844 1,401,972 - (107,844) 1,294,128 107,844
PWTF 2006 0.50%7/1/2026 3,325,000 $180,418 2,706,269 - (180,418) 2,525,851 180,418
Total Public Works Trust Fund Loans 13,770,691 8,125,303 - (723,829) 7,401,474 723,830
Premium Related to Debt 652,671 - (45,520) 607,151 -
Financing Costs Related to Debt (240,521) - 25,641 (214,880) -
Total Proprietary 44,365,691$ 37,495,406$ 475,191$ (1,855,200)$ 36,115,397$ 2,436,341$
Total All Funds 78,578,468$ 75,001,327$ 3,558,279$ (5,092,219)$ 73,467,387$ 4,936,326$
(1) Subject to federal arbitrage compliance rules.
CHANGES IN LONG-TERM LIABILITIES
City of Auburn: 2012 CAFR Notes to the Financial Statements
77
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.
Interest Maturity Original Principal Balance Balance Due Within
Issue Name Rates Date Amount Installments 12/31/11 Additions Reductions 12/31/12 One Year
GOVERNMENTAL DEBT:
General Obligation Bonds:
Valley Communication Public Dev Auth 3.00-4.00%12/1/2015 1,065,000$ $21,000 - $220,000 848,000$ -$ (201,000)$ 647,000$ 215,000$
SCORE Public Development Authority 3.00-6.62%1/1/2039 26,732,850 $593,650 - $1,601,150 26,732,850 - - 26,732,850 593,650
Total General Obligation Bonds
Due Other Governments 27,797,850$ 27,580,850$ -$ (201,000)$ 27,379,850$ 808,650$
CHANGES IN LONG-TERM LIABILITIES DUE OTHER GOVERNMENTS
Enterprise Governmental Funds Funds 12/31/12
Liabilities payable from restricted assets:
Revenue bonds 2,102,537$ -$ 2,102,537$
Long-term bonds payable:
General obligation bonds 5,040,000 29,585,000 34,625,000
Capital lease - 524,498 524,498
Revenue bonds 20,522,463 - 20,522,463
Special assessments with - - -
government commitment
Public Works Trust Fund loans 7,401,474 1,286,125 8,687,599
Due to Other Governments - 27,379,850 27,379,850
Employee leave benefits 656,652 1,951,945 2,608,597
Other Post Employment Benefits - 4,068,439 4,068,439
Premium 607,151 192,240 799,391
Financing Costs (214,880) (256,257) (471,137)
Total long-term debt 36,115,397$ 64,731,840$ 100,847,237$
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 2012 was 3.1. 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.
City of Auburn: 2012 CAFR Notes to the Financial Statements
78
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, 2012 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 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; employees of legislative committees; community and
technical colleges, college and university employees not participating in higher education retirement programs;
employees of district and municipal courts; and employees of local governments. Approximately 50 percent of PERS
salaries are accounted for by state employment. PERS retirement benefit provisions are established in chapters 41.34
and 41.40 RCW and may be amended only by the State Legislature.
PERS is a cost-sharing multiple-employer retirement system comprised of three separate plans for membership
purposes: Plans 1 and 2 are defined benefit plans and Plan 3 is a defined benefit plan with a defined contribution
component.
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 is comprised of and reported as three separate plans for accounting purposes: Plan 1, Plan 2/3, and Plan 3. Plan
1 account for the defined benefits of Plan members. Plan 2/3 accounts for the defined benefits of Plan 2 members and
the defined benefit portion of benefits for Plan 3 members. Plan 3 accounts for the defined contribution portion of
benefits for Plan 3 members. Although members can only be a member of either Plan 2 or Plan 3, the defined benefit
portions of Plan 2 and Plan 3 are accounted for in the same pension trust fund. All assets of this Plan 2/3 defined
City of Auburn: 2012 CAFR Notes to the Financial Statements
79
benefit plan may legally be used to pay the defined benefits of any of the Plan 2 and Plan 3 members or beneficiaries,
as defined by the terms of the plan. Therefore, Plan 2/3 is considered to be a single plan for accounting purposes.
PERS Plan 1 and Plan 2 retirement benefits are financed from a combination of investment earnings and employer and
employee contributions. Employee contributions to the PERS Plan 1 and Plan 2 defined benefit plans accrue interest at
a rate specified by the Director of DRS. During DRS Fiscal Year 2012, the rate was five and one-half percent
compounded quarterly. Members of PERS Plan 1 and Plan 2 can elect to withdraw total employee contributions and
interest thereon upon separation from PERS-covered employment.
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. 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. The allowance amount is $350 a month, or two-thirds of the
monthly AFC, whichever is less. The benefit is reduced by any workers’ compensation benefit and is payable as long as
the member remains disabled or until the member attains the age of 60, at which time the benefit is converted to the
member’s service retirement amount. 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. Plan 1 members may elect to receive an
optional COLA amount (based on the Consumer Price Index), capped at 3 percent annually. To offset the cost of this
annual adjustment, the benefit is reduced.
PERS Plan 1 members can receive credit for military service while actively serving in the military if such credit makes
them eligible to retire. Members can also purchase up to 24 months of service credit lost because of an on-the-job
injury.
The survivor of a PERS Plan 1 member who does after having earned ten years of service credit has the option, upon
the member’s death, of either a monthly survivor benefit or the lump sum of contributions plus interest.
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. The AFC is the monthly average of the 60 consecutive highest-paid service months. There is no cap on years
of service credit; and a cost-of-living allowance is granted (based on Consumer Price Index), capped at 3 percent
annually.
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.
City of Auburn: 2012 CAFR Notes to the Financial Statements
80
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. The
surviving spouse or eligible child or children of a PERS Plan 2 member who dies after having earned ten years of
service credit has the option of either a monthly benefit or a lump sum payment of the member’s contributions plus
interest.
PERS Plan 3 has a dual benefit structure. Employer contributions finance a defined benefit component and member
contributions finance a defined contribution component. As established by Chapter 41.34 RCW, employee
contribution rates to the defined contribution component range from 5 percent to 15 percent of salaries, based on the
member choice. There are currently no requirements for employer contributions to the defined contribution
component of PERS Plan 3.
PERS Plan 3 defined contribution retirement benefits are dependent upon the results of investment activities. Members
may elect to self-direct the investment of their contributions. Any expenses incurred in conjunction with the self-
directed investments are paid by the members. Absent a member’s self-direction, PERS Plan 3 investments are made in
the same portfolio as that of the PERS 2/3 defined benefit plan.
For DRS’s fiscal year 2012, PERS Plan 3 employee contributions were $95.2 million, and plan refunds paid out were
$66.2 million.
The defined benefit portion of PERS Plan 3 provides members a monthly benefit that is 1 percent of the AFC per year
of service. The AFC is the monthly average of the 60 consecutive highest-paid service months. There is no cap on
years of service credit, and Plan 3 provides the same cost of living allowance as Plan 2.
Effective June 7, 2006 PERS Plan 3 members are vested in the defined benefit portion of the plan after ten years of
service; or after five year of service, if twelve months of that service is earned after age 44; or after five service credit
years earned in PERS Plan 2 by June 1, 2003. Plan 3 members are immediately vested in the defined contribution
portion of their plan.
Vested Plan 3 members are eligible for normal retirement at age 65, or they may retire early with the following
conditions and benefits:
• If they have at least ten service credit years and are 55 years old, the benefit is reduced by an ERF that 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.
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.
City of Auburn: 2012 CAFR Notes to the Financial Statements
81
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.
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 final 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 final 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 1,184 participating employers in PERS. Membership in PERS consisted of the following as of the latest
actuarial valuation date for the plans of June 30, 2011:
Retirees and Beneficiaries Receiving Benefits 79,363
Terminated Plan Members Entitled to but not yet Receiving Benefits 29,925
Active Plan Members Vested 105,578
Active Plan Members Non-vested 46,839
Total 261,705
City of Auburn: 2012 CAFR Notes to the Financial Statements
82
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.
The required contribution rates expressed as a percentage of current year covered payroll, as of December 31, 2012,
were as follows:
Members not participating in JBM:
PERS Plan 1 PERS Plan 2 PERS Plan 3
Employer*7.21%**7.21%**7.21%***
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 10.74% for Plan 1 and 7.21% 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*7.21%7.21%7.21%**
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
2012 29,077$ 1,182,550$ 268,187$
2011 26,173 1,002,132 227,334
2010 21,906 845,629 181,993
The employer contribution rate for the City was 5.31% in 2010, 7.25% in 2011, and 7.21% in 2012.
City of Auburn: 2012 CAFR Notes to the Financial Statements
83
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.
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.
Employee contributions to the LEOFF Plan 1 and Plan 2 defined benefit plans accrue interest at a rate specified by the
Director of DRS. During DRS fiscal year 2012, the rate was five and one-half percent compounded quarterly.
Members in LEOFF Plan 1 and Plan 2 can elect to withdraw total employee contributions and interest earnings upon
separation from LEOFF covered employment.
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.
City of Auburn: 2012 CAFR Notes to the Financial Statements
84
The LEOFF Plan 1 disability allowance is 50 percent of the FAS plus 5 percent for each child up to a maximum of 60
percent. Upon recovery from disability before the age of 50, a member is restored to service with full credit for service
while disabled. Upon recovery after the age of 50, the benefit continues as the greater of the member’s disability
allowance or service retirement allowance.
LEOFF Plan 1 members may purchase up to five years of additional service credit once eligible for retirement. This
credit can only be purchased at the time of retirement and can be used only to provide the member with a monthly
annuity that is paid in addition to the member’s allowance.
LEOFF Plan 2 members are vested after the completion of five years of eligible service. Plan 2 members may retire at
the age of 50 with 20 years of service, or at the age of 53 with five years of service, with an allowance of two percent
of the FAS per year of service. The FAS is based on the highest consecutive 60 months. Plan 2 members who retire
prior to the age of 53 receive reduced benefits. Benefits are actuarially reduced for each year that the benefit
commences prior to age 53 and to reflect the choice of a survivor option. If the member has at least 20 years of
service and is age 50, the reduction is three percent for each year prior to age 53. A cost-of-living allowance is granted
(based on the Consumer Price Index), capped at three percent annually.
LEOFF Plan 2 provides disability benefits. There is no minimum amount of service credit required for eligibility. The
Plan 2 allowance amount is 2 percent of the FAS for each year of service. Benefits are actuarially reduced for each year
that the member’s age is less than 53, unless the disability is duty-related, and to reflect the choice of a survivor option.
If the member has at least 20 years of service and is age 50, the reduction is 3 percent for each year prior to age 53. A
catastrophic disability benefit equal to 70 percent of their FAS, subject to offsets for workers’ compensation and Social
Security disability benefits received, is also available to those LEOFF 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 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 children 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.
City of Auburn: 2012 CAFR Notes to the Financial Statements
85
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.
Legislation passed in 2009 provides to the Washington-state-registered domestic partners of LEOFF Plan 2 members
the same treatment as married spouses, to the extent that the treatment is not in conflict with federal laws.
There are 373 participating employers in LEOFF. Membership in LEOFF consisted of the following as of the latest
actuarial valuation date for the plans of June 30, 2011:
Retirees and Beneficiaries Receiving Benefits 9,947
Terminated Plan Members Entitled to but not yet Receiving Benefits 656
Active Plan Members Vested 13,942
Active Plan Members Non-vested 3,113
Total 27,658
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. For
DRS fiscal year 2012, the state contributed $52.8 million to LEOFF Plan 2. The methods used to determine the
contribution requirements are established under state statue in accordance with Chapters 41.26 and 41.45 RCW.
The required contribution rates expressed as a percentage of current-year covered payroll, as of December 31, 2012,
were as follows:
LEOFF Plan 1 LEOFF Plan 2
Employer*0.16% 5.24%**
Employee 0.00%8.46%
* The employer rates include the employer administrative expense fee currently set at 0.16%.
** The employer rate for ports and universities is 8.62%.
Both the City of Auburn and the employees made the required contributions. The City’s required contributions for the
years ended December 31 were:
LEOFF Plan 1 LEOFF Plan 2
2012 -$ 467,819$
2011 - 459,991
2010 190 469,715
City of Auburn: 2012 CAFR Notes to the Financial Statements
86
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.
PSERS is a cost-sharing multiple-employer retirement system comprised of a single defined benefit plan, PSERS Plan 2.
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; Washington state cities
except for Seattle, Tacoma and Spokane; and corrections entities formed by PSERS employers under the Interlocal
Cooperation Act.
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 defined benefit retirement benefits are financed from a combination of investment earnings and employer and
employee contributions. Employee contributions to the plan accrue interest at a rate specified by the Director of DRS.
During DRS fiscal year 2012, the rate was five and one-half percent compounded quarterly. Members of PSERS Plan 2
can elect to withdraw total employee contributions and interest thereon upon separation from PSERS covered
employment.
PSERS members may retire with a monthly benefit of 2 percent of the average final compensation (AFC) 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, or at age 53 with 20
years of service. The AFC is the monthly average of the member’s 60 consecutive highest-paid service credit months.
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.
PSERS 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 3 percent per year reduction for each year between the age at retirement and age 60
applies.
PSERS Plan 2 provides disability benefits. There is no minimum amount of service credit required for eligibility. The
monthly benefit is 2 percent of the AFC for each year of service. The AFC is based on the member’s 60 consecutive
highest creditable months of service. 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). 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.
City of Auburn: 2012 CAFR Notes to the Financial Statements
87
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, or a
surviving spouse or eligible children, may request interruptive military service credit.
PSERS members may also purchase up to 24 consecutive months of service credit for each period of temporary duty
disability.
Beneficiaries of a PSERS Plan 2 member with ten years of service who is killed in the course of employment receive
retirement benefits without actuarial reduction. 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, or if the death resulted from an
occupational disease or infection that arose naturally and proximately out of the member’s covered 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, 2011:
Retirees and Beneficiaries Receiving Benefits 15
Terminated Plan Members Entitled to but not yet Receiving Benefits 1
Active Plan Members Vested 167
Active Plan Members Non-vested 4,020
Total 4,203
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. 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, 2012,
were as follows:
PSERS Plan 2
Employer*8.87%
Employee 6.36%
*The employer rate includes an 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
2012 -$
2011 -
2010 55,262
City of Auburn: 2012 CAFR Notes to the Financial Statements
88
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 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,
2013 that no future City contributions would be required beyond future revenues from state fire insurance taxes and
interest earnings. In 2012, $63,205 was received from the state from taxes on fire insurance premiums. On-behalf
payments of fringe benefits and salaries for the City’s employees were recognized as revenues and
expenditures/expenses during the period. Administrative costs, such as City staff time and actuarial valuation costs are
funded from interest earnings or City contributions. The required schedule of funding progress immediately following
the notes to the financial statements presents multi-year trend information about whether the actuarial value of plan
assets is increasing or decreasing over time relative to the actuarial accrued liability for benefits.
Membership of the Firemen’s Pension Plan consisted of 14 eligible, of which 12 are receiving benefits.
Fiscal Actual Annual Required Percentage Annual Percentage Net
Year Employer Contribution of ARC Pension Cost of APC Pension (Asset)
Ending Contributions*(ARC)Contributed (APC)Contributed Obligation
December 31, 2000 31,721$ 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)
December 31, 2012 48,380 21,469 225%32,156 150.00%(289,997)
GASB STATEMENT No. 27GASB STATEMENT No. 25
SCHEDULE OF EMPLOYER CONTRIBUTIONS THREE YEAR TREND INFORMATION
City of Auburn: 2012 CAFR Notes to the Financial Statements
89
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)
12/31/2000 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)
12/31/2012 21,469 (10,951) (21,638) 12.65%32,156 48,380 (16,224) (289,997)
(1) A change in consulting actuaries resulted in a recommended change in the actuarial methods and assumptions.
(2) 7% interest rate was used for years prior to January 1, 2000-2004; 6% 2005-2006; 5% 2007-2008; 4% 2011-2012,
and 3.75% 2012.
Statement of Net Position 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, 2013
Entry age normal
30-year, closed as of January 1, 1999
16 years
Inflation rate:2.50%
Investment rate of return:3.75%
Projected salary increases:3.50%
Cost-of living adjustments:2.50%
Actuarial Assumptions
City of Auburn: 2012 CAFR Notes to the Financial Statements
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NOTE 11 – OTHER POST EMPLOYMENT BENEFITS
In 2008, the city implemented GASB Statement 45, Accounting and Financial Reporting by Employers for Post
Employment Benefits Other Than Pensions.
Plan Description
The city is the administrator of the LEOFF 1 employees plan covering lifetime medical care. This plan is a defined
benefit healthcare plan, other post employment benefit plan (OPEB).
The city is required to pay post employment benefits in accordance with Revised Code of Washington (RCW) Chapter
41.16, all medical and long term care as long as a disability exists 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, 2012, there was 1 active member and 58 retirees meeting the eligibility requirements of a LEOFF 1
member. This is considered a closed group with no new members. The one active member is employed by the Valley
Regional Fire Authority (VRFA) which is a separate governmental entity and the City is billed 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.
City of Auburn: 2012 CAFR Notes to the Financial Statements
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Fiscal Year Ending
Annual Required Contribution (ARC)12/31/2010 12/31/2011 12/31/2012
1. Annual Normal Costs at beginning of year 90,257$ 101,456$ 101,456$
2. Amortization of UAAL at beginning of year 1,540,432 2,011,425 2,011,425
3. Interest to end of year 81,534 84,515 84,515
4. ARC at end of year 1,712,223$ 2,197,396$ 2,197,396$
5. Interest on Net OPEB Obligation 72,339 82,754 123,847
6. Adjustment to ARC 114,014 157,139 244,712
7. Annual OPEB Cost 1,670,548$ 2,123,011$ 2,076,531$
8. Employer Contributions 1,048,494 1,095,684 1,104,259
9. Change in Net OPEB Obligation 622,054 1,027,327 972,272
10. Net OPEB Obligation at beginning of year 1,446,786 2,068,840 3,096,167
11. Net OPEB Obligation at end of year 2,068,840$ 3,096,167$ 4,068,439$
The net OPEB obligation of $4,068,439 is included as a non-current liability on the Statement of Net Position.
The City’s annual OPEB cost, the percentage of OPEB costs contributed to the plan, and the net OPEB obligation for
2012, 2011 and 2010 are as follows:
Contributions as a
Annual Percentage of Net OPEB
Fiscal Year Ending OPEB Cost Annual OPEB Cost Obligation
December 31, 2012 2,076,531$ 53%4,068,439$
December 31, 2011 2,123,011 52%3,096,167
December 31, 2010 1,670,548 63%2,068,840
Funded Status and Funding Progress
As of January 1, 2011, the most recent actuarial valuation date, the plan was 0% funded. The accrued liability for
benefits was $26.4 million, and the actuarial value of assets was $0, resulting in a UAAL of $26.4 million. The
required schedule of funding progress immediately following the notes to the financial statements presents multi-year
trend information about whether the actuarial value of plan assets is increasing or decreasing over time relative to the
actuarial accrued liability for benefits.
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
City of Auburn: 2012 CAFR Notes to the Financial Statements
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investments that are expected to be used to finance the payment of benefits. Other significant assumptions are a
medical (healthcare) trend 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.
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 $789.14 per month for non-Medicare enrolled
retiree-only coverage, $1,584.71 for non-Medicare enrolled retiree and spouse coverage, $1,217.32 for Medicare
enrolled retiree and non-Medicare enrolled spouse (or non-Medicare enrolled retiree and Medicare-enrolled spouse)
and $855.23 for Medicare-enrolled retiree and spouse coverage.
Participating Employers are not contractually required to contribute an assessed rate each year by the Trust for non-
LEOFF 1 retirees. The retire pays for 100% of the premium.
NOTE 13 – CONSTRUCTION COMMITMENTS
At December 31, 2012 the City had the following contractual obligations on construction projects:
SCHEDULE OF OUTSTANDING CONSTRUCTION OBLIGATIONS
As of December 31, 2012
Amount Outstanding
Traffic projects 26,456$
Street projects 3,312,467
Utilities projects 3,140,303
Other projects 801,477
Total commitments 7,280,704$
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.
City of Auburn: 2012 CAFR Notes to the Financial Statements
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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 2012, of the $2,986 net appreciation on investments, all was available for expenditures. Amounts that are
available for expenditure are reflected as assigned fund balance.
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.
City of Auburn: 2012 CAFR Notes to the Financial Statements
94
The 2012 cost distribution for the five participating cities is as follows:
Dispatchable Percent of
Calls Total *
Renton 72,004 21.18%
Kent 96,126 28.28%
Auburn 65,612 19.30%
Tukwila 33,645 9.90%
Federal Way 72,547 21.34%
Total 339,934 100.00%
* Distribution of current year net income is based on these budgeted percentages.
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 $57 million King County levy.
This agreement provides that upon voluntary termination of any sub-region participation in the system, it surrenders
its radio frequencies, relinquishes its equipment and transfers any unexpended levy proceeds and association
equipment replacement reserves to another sub-region or consortium of sub-regions.
The share of equity belonging to the five participating cities is as follows:
Item Renton Kent Auburn Tukwila Federal Way Total
Equity Dec 31, 2011 4,996,753$ 7,052,093$ 4,723,727$ $2,812,717 3,258,408$ 22,843,698$
Current year change 65,681 87,685 59,850 30,690 66,176 310,082
Equity Dec 31, 2012 5,062,434$ 7,139,778$ 4,783,577$ 2,843,407$ 3,324,584$ 23,153,780$
% of equity 21.86%30.84%20.66%12.28%14.36%
% of 2012 distribution 21.18%28.28%19.30%9.90%21.34%
Liabilities are the responsibility of the five participating cities in direct proportion to their equity position.
City of Auburn: 2012 CAFR Notes to the Financial Statements
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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, 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 $86 million in special obligation bonds in 2009 to carry out the facility development
project. The following is a summary of the debt service requirements for the bond issue:
35% BABs Auburn Burien Federal Way Renton SeaTac Tukwila
Year Principal Interest Subsidy Total 31%4%18%36%3%8%
2013 1,915,000$ 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 2,145,000 4,820,241 (1,621,980) 5,343,261 1,656,411 213,730 961,787 1,923,574 160,298 427,461
2018-2022 11,990,000 22,399,915 (7,748,350) 26,641,565 8,258,885 1,065,663 4,795,482 9,590,963 799,247 2,131,325
2023-2027 14,485,000 18,727,798 (6,710,481) 26,502,317 8,215,718 1,060,093 4,770,417 9,540,834 795,070 2,120,185
2028-2032 17,725,000 13,590,870 (4,959,695) 26,356,175 8,170,414 1,054,247 4,744,112 9,488,223 790,685 2,108,494
2033-2037 21,855,000 7,082,263 (2,731,829) 26,205,434 8,123,685 1,048,217 4,716,978 9,433,956 786,163 2,096,435
2038-2039 10,115,000 676,321 (353,824) 10,437,497 3,235,624 417,500 1,878,749 3,757,499 313,125 835,000
Totals 86,235,000$ 87,397,927$ (30,721,797)$ 142,911,130$ 44,302,450$ 5,716,445$ 25,724,004$ 51,448,007$ 4,287,334$ 11,432,891$
Summary of Debt Service Requirements
Debt Service Schedule Debt Service Allocation to Owner Cities
City of Auburn: 2012 CAFR Notes to the Financial Statements
96
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, 2012 related to SCORE:
Member City Percent of Equity 2011 Equity Balance 2012 Distribution 2012 Equity Balance
Auburn 31.00%3,189,320$ (1,820,461)$ 1,368,859$
Burien 4.00%411,525 (234,898) 176,627
Federal Way 18.00%1,851,863 (1,057,043) 794,820
Renton 36.00%3,703,728 (2,114,084) 1,589,644
SeaTac 3.00%308,643 (176,174) 132,469
Tukwila 8.00%823,050 (469,796) 353,254
Grand Totals 100.00%10,288,129$ (5,872,456)$ 4,415,673$
South Correctional Entity (SCORE)
2012 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.
Since the obligation to fund future joint venture-related debt is separately reported as due to other governments, the
investment in joint ventures is reported as a combination of this debt with the current reported equity in joint ventures
as follows:
Balance Additions Reductions Balance
12/31/2011 12/31/2012
Valley Communication Public Dev Auth 848,000$ -$ (201,000)$ 647,000$
SCORE Public Development Authority 26,732,850 - - 26,732,850
Due to Other Governments 27,580,850 - (201,000) 27,379,850
Valley Communications Center 4,723,727 59,850 - 4,783,577
South Correctional Entity (SCORE)3,189,320 - (1,820,461) 1,368,859
Equity Share 7,913,047 59,850 (1,820,461) 6,152,436
Total Investment in Joint Ventures 33,532,286$
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.
City of Auburn: 2012 CAFR Notes to the Financial Statements
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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 2012 Auburn paid $38,454 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 2012 were $238,999. Medical premiums and benefit payments made under the Fire Relief and Pension
Plan for 2012 were $168,704.
NOTE 17 – CONTINGENCIES AND LITIGATION
As of December 31, 2012, 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 153 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 $750,000, 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.
City of Auburn: 2012 CAFR Notes to the Financial Statements
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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 agreement, WCIA retains the right to additionally assess the membership for any funding shortfall.
An investment committee, using investment brokers, produces additional revenue by investment of WCIA’s assets in
financial instruments which comply with all State guidelines.
A Board of Directors governs WCIA, which is comprised of one designated representative from each member. The
Board elects an Executive Committee and appoints a Treasurer to provide general policy direction for the organization.
The WCIA Executive Director reports to the Executive Committee and is responsible for conducting the day to day
operations of WCIA.
No settlement has exceeded insurance coverage over the past three years.
Workers’ Compensation
Title 51 RCW requires the City to ensure payment of benefits for job-related injuries and diseases through the Workers’
Compensation fund or through self-insurance. The City participates in the State of Washington’s Workers’
Compensation program. Premiums are based on individual employer’s reported payroll hours and insurance rates
based on each employer’s risk classification and past experience. The premium is paid by employer and employee
contributions.
NOTE 19 – SUBSEQUENT EVENTS
On March 14, 2013, the City of Auburn issued approximately $11,415,000 in Utility System Revenue Bonds. The
bonds will be used for improvements in the City’s utility system.
City of Auburn: 2012 CAFR Required Supplemental Information
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The informtion presented in the following required schedules was determined as part of the actuarial valuations at the
dates indicated.
Firefighter’s Pension Fund
January 1, 2013
Unfunded
Actuarial Actuarial UAAL as a
Actuarial Accrued Accrued Percentage
Actuarial Value Liabilities -Liabilities Funded Covered of Covered
Valuation Date of Assets Entry Age (UAAL)Ratio Payroll Payroll
January 1, 2001 3,632$ 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
January 1, 2013 2,552 3,387 835 75.00%- 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)
Retiree Medical and Long-Term Care Benefits
For LEOFF 1 Employees
January 1, 2011
Unfunded
Actuarial UAAL as a
Actuarial Actuarial Accrued Percentage
Actuarial Value Accrued Liabilities Funded Covered of Covered
Valuation Date of Assets Liabilities (UAAL)Ratio Payroll Payroll
January 1, 2008 - 20,738$ 20,738$ 0%N/A N/A
January 1, 2011 - 26,482 26,482 0%N/A N/A
GASB STATEMENTS No. 43 and No. 45 SCHEDULE OF FUNDING PROGRESS
(rounded to thousands)
City of Auburn: 2012 CAFR Required Supplemental Information
100
City of Auburn: 2012 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: 2012 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 7,834,755$ 96,594$ 731,392$ 1,585,916$ 10,248,657$
Receivables:
Other Receivables 288,030 - - - 288,030
Special Assessments - 537,476 - - 537,476
Due From Other Governmental Units 76,990 - 591,244 - 668,234
Total Assets 8,199,775$ 634,070$ 1,322,636$ 1,585,916$ 11,742,397$
LIABILITIES AND FUND BALANCES:
Liabilities:
Current Payables 664,507$ -$ 285,545$ -$ 950,052$
Unearned Revenue - 537,476 - - 537,476
Total Liabilities 664,507 537,476 285,545 - 1,487,528
Fund Balances:
Nonspendable - - - 1,475,580 1,475,580
Restricted 4,041,664 50,439 931,969 - 5,024,072
Committed 3,258,257 - - - 3,258,257
Assigned 235,347 46,155 105,122 110,336 496,960
Total Fund Balances 7,535,268 96,594 1,037,091 1,585,916 10,254,869
Total Liabilities and Fund Balances 8,199,775$ 634,070$ 1,322,636$ 1,585,916$ 11,742,397$
December 31, 2012
City of Auburn, Washington
COMBINING BALANCE SHEET
NON-MAJOR GOVERNMENT FUNDS
City of Auburn: 2012 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$ -$ 121,148$ -$ 2,121,148$
Retail Sales & Use - 269,243 - - 269,243
Interfund Utility 468,831 - - - 468,831
Utility 1,378,463 - - - 1,378,463
Excise 78,143 - - - 78,143
Other 56,734 - - - 56,734
Intergovernmental 527,153 537,437 1,342,956 - 2,407,546
Charges for Services 1,465,461 - 11,064 48,660 1,525,185
Special Assessments - 39,115 - - 39,115
Investment Earnings 15,465 31,082 2,566 2,986 52,099
Miscellaneous 65,590 - 62,435 - 128,025
Total Revenues 6,055,840 876,877 1,540,169 51,646 8,524,532
EXPENDITURES:
Current:
Security of Persons & Property 255,131 - - - 255,131
Transportation 3,878,486 - - - 3,878,486
Economic Environment 610,734 - - - 610,734
Cultural and Recreation - - 57 - 57
Debt Service
Principal - 940,075 - - 940,075
Interest - 1,702,151 - - 1,702,151
Capital Outlay - - 3,166,098 - 3,166,098
Total Expenditures 4,744,351 2,642,226 3,166,155 - 10,552,732
Excess (Deficiency) of Revenues
Over (Under) Expenditures 1,311,489 (1,765,349) (1,625,986) 51,646 (2,028,200)
OTHER FINANCING SOURCES (USES):
Transfers In (Note 5)150,000 1,771,314 32,626 - 1,953,940
Transfers Out (Note 5)(2,180,490) (10,000) - (22,300) (2,212,790)
Total Other Financing Sources (Uses)(2,030,490) 1,761,314 32,626 (22,300) (258,850)
Net Change in Fund Balances (719,001) (4,035) (1,593,360) 29,346 (2,287,050)
Fund Balances - Beginning 8,254,269 100,629 2,630,451 1,556,570 12,541,919
Fund Balances - Ending 7,535,268$ 96,594$ 1,037,091$ 1,585,916$ 10,254,869$
City of Auburn, Washington
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
NON-MAJOR GOVERNMENT FUNDS
For the Year Ended December 31, 2012
City of Auburn: 2012 CAFR Fund Financial Statements and Schedules
104
City of Auburn: 2012 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.
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: 2012 CAFR Fund Financial Statements and Schedules
106
Page 1 of 2
Hotel/Arterial Housing
Local Motel Street Drug Community
Streets Tax Preservation Forfeiture Development
ASSETS:
Cash and Cash Equivalents 1,777,950$ 110,600$ 1,405,575$ 857,653$ 37,519$
Receivables:
Other Receivables - - 288,030 - -
Due From Other Governmental Units - - - 19,665 57,325
Total Assets 1,777,950$ 110,600$ 1,693,605$ 877,318$ 94,844$
LIABILITIES AND FUND BALANCES:
Liabilities:
Current Payables 42,467$ 687$ 13,304$ 19,244$ 51,432$
Total Liabilities 42,467 687 13,304 19,244 51,432
Fund Balances:
Restricted - 109,913 - 856,402 43,397
Committed 1,581,264 - 1,676,993 - -
Assigned 154,219 - 3,308 1,672 15
Total Fund Balances 1,735,483 109,913 1,680,301 858,074 43,412
Total Liabilities and Fund Balances 1,777,950$ 110,600$ 1,693,605$ 877,318$ 94,844$
City of Auburn, Washington
COMBINING BALANCE SHEET
NON-MAJOR SPECIAL REVENUE FUNDS
December 31, 2012
City of Auburn: 2012 CAFR Fund Financial Statements and Schedules
107
Page 2 of 2
Total
Business Nonmajor
Recreational Improvement Mitigation Special Revenue
Trails Area Fees Funds
22,450$ 24,456$ 3,598,552$ 7,834,755$
- - - 288,030
- - - 76,990
22,450$ 24,456$ 3,598,552$ 8,199,775$
-$ -$ 537,373$ 664,507$
- - 537,373 664,507
22,421 24,403 2,985,128 4,041,664
- - - 3,258,257
29 53 76,051 235,347
22,450 24,456 3,061,179 7,535,268
22,450$ 24,456$ 3,598,552$ 8,199,775$
City of Auburn: 2012 CAFR Fund Financial Statements and Schedules
108
Page 1 of 2
Hotel/Arterial Housing
Local Motel Street Drug Community
Streets Tax Preservation Forfeiture Development
REVENUES:
Taxes:
Property 2,000,000$ -$ -$ -$ -$
Interfund Utility - - 468,831 - -
Utility - - 1,378,463 - -
Excise - 78,143 - - -
Other - - - - -
Intergovernmental - - - 47,324 472,729
Charges for Services - 17,915 - - -
Investment Earnings 4,219 198 3,308 1,672 15
Miscellaneous - - - 65,590 -
Total Revenues 2,004,219 96,256 1,850,602 114,586 472,744
EXPENDITURES:
Current:
Security of Persons & Property - - - 205,131 -
Transportation 2,403,816 - 1,474,670 - -
Economic Environment - 84,075 - - 472,729
Total Expenditures 2,403,816 84,075 1,474,670 205,131 472,729
Excess (Deficiency) of Revenues
Over (Under) Expenditures (399,597) 12,181 375,932 (90,545) 15
OTHER FINANCING SOURCES (USES):
Transfers In (Note 5)150,000 - - - -
Transfers Out (Note 5)- - - - -
Total Other Financing Sources (Uses)150,000 - - - -
Net Change in Fund Balances (249,597) 12,181 375,932 (90,545) 15
Fund Balances - Beginning 1,985,080 97,732 1,304,369 948,619 43,397
Fund Balances - Ending 1,735,483$ 109,913$ 1,680,301$ 858,074$ 43,412$
City of Auburn, Washington
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
NON-MAJOR SPECIAL REVENUE FUNDS
For the Year Ended December 31, 2012
City of Auburn: 2012 CAFR Fund Financial Statements and Schedules
109
Page 2 of 2
Total
Business Nonmajor
Recreational Improvement Mitigation Special Revenue
Trails Area Fees Funds
-$ -$ -$ 2,000,000$
- - - 468,831
- - - 1,378,463
- - - 78,143
- 56,734 - 56,734
7,100 - - 527,153
- - 1,447,546 1,465,461
29 53 5,971 15,465
- - 65,590
7,129 56,787 1,453,517 6,055,840
- - 50,000 255,131
- - - 3,878,486
- 53,930 - 610,734
- 53,930 50,000 4,744,351
7,129 2,857 1,403,517 1,311,489
- - - 150,000
- - (2,180,490) (2,180,490)
- - (2,180,490) (2,030,490)
7,129 2,857 (776,973) (719,001)
15,321 21,599 3,838,152 8,254,269
22,450$ 24,456$ 3,061,179$ 7,535,268$
City of Auburn: 2012 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 4,219 (781)
Total Revenues 2,005,000 2,005,000 2,004,219 (781)
EXPENDITURES:
Transportation 2,000,000 3,021,110 2,403,816 617,294
Total Expenditures 2,000,000 3,021,110 2,403,816 617,294
Excess (Deficiency) of Revenues
Over (Under) Expenditures 5,000 (1,016,110) (399,597) 616,513
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 (866,110) (249,597) 616,513
Fund Balances - Beginning 1,095,806 1,985,080 1,985,080 -
Fund Balances - Ending 1,250,806$ 1,118,970$ 1,735,483$ 616,513$
Budget Amounts
For the Year Ended December 31, 2012
City of Auburn, Washington
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
LOCAL STREETS SPECIAL REVENUE FUND
City of Auburn: 2012 CAFR Fund Financial Statements and Schedules
111
Variance with
Final Final Budget
Original Adopted Actual Positive
(GAAP Basis)(GAAP Basis)Results (Negative)
REVENUES:
Taxes:
Excise 70,000$ 70,000$ 78,143$ 8,143$
Charges for Services 9,100 9,100 17,915 8,815
Investment Earnings 300 300 198 (102)
Total Revenues 79,400 79,400 96,256 16,856
EXPENDITURES:
Economic Environment 85,000 85,000 84,075 925
Total Expenditures 85,000 85,000 84,075 925
Excess (Deficiency) of Revenues
Over (Under) Expenditures (5,600) (5,600) 12,181 17,781
Net Change in fund Balances (5,600) (5,600) 12,181 17,781
Fund Balances - Beginning 15,726 97,732 97,732 -
Fund Balances - Ending 10,126$ 92,132$ 109,913$ 17,781$
Budget Amounts
For the Year Ended December 31, 2012
City of Auburn, Washington
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
HOTEL/MOTEL TAX SPECIAL REVENUE FUND
City of Auburn: 2012 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$ 468,831$ 68,631$
Utility 1,099,800 1,099,800 1,378,463 278,663
Investment Earnings 1,500 1,500 3,308 1,808
Total Revenues 1,501,500 1,501,500 1,850,602 349,102
EXPENDITURES:
Transportation 1,500,000 1,751,500 1,474,670 276,830
Total Expenditures 1,500,000 1,751,500 1,474,670 276,830
Excess (Deficiency) of Revenues
Over (Under) Expenditures 1,500 (250,000) 375,932 625,932
Net Change in Fund Balances 1,500 (250,000) 375,932 625,932
Fund Balances - Beginning 35,089 1,304,369 1,304,369 -
Fund Balances - Ending 36,589$ 1,054,369$ 1,680,301$ 625,932$
Budget Amounts
For the Year Ended December 31, 2012
City of Auburn, Washington
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
ARTERIAL STREET PRESERVATION SPECIAL REVENUE FUND
City of Auburn: 2012 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$ 47,324$ 1,224$
Investment Earnings 2,600 2,600 1,672 (928)
Miscellaneous 250,000 250,000 65,590 (184,410)
Total Revenues 298,700 298,700 114,586 (184,114)
EXPENDITURES:
Security of Persons & Property 298,230 328,230 205,131 123,099
Total Expenditures 298,230 328,230 205,131 123,099
Excess (Deficiency of Revenues
Over (Under) Expenditures 470 (29,530) (90,545) (61,015)
Net Change in Fund Balances 470 (29,530) (90,545) (61,015)
Fund Balances - Beginning 513,237 948,619 948,619 -
Fund Balances - Ending 513,707$ 919,089$ 858,074$ (61,015)$
Budget Amounts
For the Year Ended December 31, 2012
City of Auburn, Washington
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
DRUG FORFEITURE SPECIAL REVENUE FUND
City of Auburn: 2012 CAFR Fund Financial Statements and Schedules
114
Variance with
Final Final Budget
Original Adopted Actual Positive
(GAAP Basis)(GAAP Basis)Results (Negative)
REVENUES:
Intergovernmental 450,000$ 480,500$ 472,729$ (7,771)$
Investment Earnings - - 15 15
Total Revenues 450,000 480,500 472,744 (7,756)
EXPENDITURES:
Economic Environment 439,220 480,250 472,729 7,521
Total Expenditures 439,220 480,250 472,729 7,521
Excess (Deficiency) of Revenues
Over (Under) Expenditures 10,780 250 15 (235)
Net Change in Fund Balances 10,780 250 15 (235)
Fund Balances - Beginning 66,876 43,397 43,397 -
Fund Balances - Ending 77,656$ 43,647$ 43,412$ (235)$
Budget Amounts
For the Year Ended December 31, 2012
City of Auburn, Washington
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
HOUSING & COMMUNITY DEVELOPMENT SPECIAL REVENUE FUND
City of Auburn: 2012 CAFR Fund Financial Statements and Schedules
115
Variance with
Final Final Budget
Original Adopted Actual Positive
(GAAP Basis)(GAAP Basis)Results (Negative)
REVENUES:
Intergovernmental -$ 7,100$ 7,100$ -$
Investment Earnings 100 100 29 (71)
Total Revenues 100 7,200 7,129 (71)
Excess (Deficiency) of Revenues
Over (Under) Expenditures 100 7,200 7,129 (71)
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 7,129 (71)
Fund Balances - Beginning 15,377 15,321 15,321 -
Fund Balances - Ending 22,577$ 22,521$ 22,450$ (71)$
Budget Amounts
For the Year Ended December 31, 2012
City of Auburn, Washington
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
RECREATION TRAILS SPECIAL REVENUE FUND
City of Auburn: 2012 CAFR Fund Financial Statements and Schedules
116
Variance with
Final Final Budget
Original Adopted Actual Positive
(GAAP Basis)(GAAP Basis)Results (Negative)
REVENUES:
Other 54,000$ 54,000$ 56,734$ 2,734$
Investment Earnings 100 100 53 (47)
Total Revenues 54,100 54,100 56,787 2,687
EXPENDITURES:
Economic Environment 54,000 54,000 53,930 70
Total Expenditures 54,000 54,000 53,930 70
Excess (Deficiency) of Revenues
Over (Under) Expenditures 100 100 2,857 2,757
Net Change in Fund Balances 100 100 2,857 2,757
Fund Balances - Beginning 43,496 21,599 21,599 -
Fund Balances - Ending 43,596$ 21,699$ 24,456$ 2,757$
Budget Amounts
For the Year Ended December 31, 2012
City of Auburn, Washington
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
BUSINESS IMPROVEMENT AREA SPECIAL REVENUE FUND
City of Auburn: 2012 CAFR Fund Financial Statements and Schedules
117
Variance with
Final Final Budget
Original Adopted Actual Positive
(GAAP Basis)(GAAP Basis)Results (Negative)
REVENUES:
Investment Earnings 24,000$ 24,000$ 15,533$ (8,467)$
Total Revenues 24,000 24,000 15,533 (8,467)
Excess (Deficiency) of Revenues
Over (Under) Expenditures 24,000 24,000 15,533 (8,467)
OTHER FINANCING SOURCES (USES):
Transfers In (Note 5)- 2,500,000 2,500,000 -
Transfers Out (Note 5)- (226,520) (200,000) 26,520
Total Other Financing Sources (Uses)- 2,273,480 2,300,000 26,520
Net Change in Fund Balances 24,000 2,297,480 2,315,533 18,053
Fund Balances - Beginning 5,601,564 5,037,425 5,037,425 -
Fund Balances - Ending 5,625,564$ 7,334,905$ 7,352,958$ 18,053$
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 (7,352,958)
Fund Balance - Ending (GAAP)-$
Budget Amounts
For the Year Ended December 31, 2012
City of Auburn, Washington
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
CUMULATIVE RESERVE SPECIAL REVENUE FUND
City of Auburn: 2012 CAFR Fund Financial Statements and Schedules
118
Variance with
Final Final Budget
Original Adopted Actual Positive
(GAAP Basis)(GAAP Basis)Results (Negative)
REVENUES:
Charges for Services 880,000$ 880,000$ 1,447,546$ 567,546$
Investment Earnings 22,000 22,000 5,971 (16,029)
Total Revenues 902,000 902,000 1,453,517 551,517
EXPENDITURES:
Security of Person & Property 50,000 50,000 50,000 -
Total Expenditures 50,000 50,000 50,000 -
Excess (Deficiency) of Revenues
Over (Under) Expenditures 852,000 852,000 1,403,517 551,517
OTHER FINANCING SOURCES (USES):
Transfers Out (Note 5)(1,070,700) (2,404,340) (2,180,490) 223,850
Total Other Financing Sources (Uses)(1,070,700) (2,404,340) (2,180,490) 223,850
Net Change in Fund Balances (218,700) (1,552,340) (776,973) 775,367
Fund Balances - Beginning 1,665,773 3,838,152 3,838,152 -
Fund Balances - Ending 1,447,073$ 2,285,812$ 3,061,179$ 775,367$
Budget Amounts
For the Year Ended December 31, 2012
City of Auburn, Washington
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
MITIGATION SPECIAL REVENUE FUND
City of Auburn: 2012 CAFR Fund Financial Statements and Schedules
119
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: 2012 CAFR Fund Financial Statements and Schedules
120
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 46,155$ -$ -$ 44,471$ 5,968$ 96,594$
Receivables:
Special Assessments - - - - 537,476 537,476
Total Assets 46,155$ -$ -$ 44,471$ 543,444$ 634,070$
LIABILITIES AND FUND BALANCES:
Liabilities:
Unearned Revenue -$ -$ -$ -$ 537,476$ 537,476$
Total Liabilities - - - - 537,476 537,476
Fund Balances:
Restricted - - - 44,471 5,968 50,439
Assigned 46,155 - - - - 46,155
Total Fund Balances 46,155 - - 44,471 5,968 96,594
Total Liabilities and Fund Balances 46,155$ -$ -$ 44,471$ 543,444$ 634,070$
City of Auburn, Washington
COMBINING BALANCE SHEET
NON-MAJOR DEBT SERVICE FUNDSDecember 31, 2012
City of Auburn: 2012 CAFR Fund Financial Statements and Schedules
121
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:
Retail Sales & Use -$ -$ 269,243$ -$ -$ 269,243$
Special Assessments - - - - 39,115 39,115
Intergovernmental - 406,321 131,116 - - 537,437
Investment Earnings 401 - 181 84 30,416 31,082
Total Revenues 401 406,321 400,540 84 69,531 876,877
EXPENDITURES:
Debt Service
Principal 220,000 485,000 200,000 - 35,075 940,075
Interest 66,900 1,211,066 395,367 - 28,818 1,702,151
Total Expenditures 286,900 1,696,066 595,367 - 63,893 2,642,226
Excess (Deficiency) of Revenues
Over (Under) Expenditures (286,499) (1,289,745) (194,827) 84 5,638 (1,765,349)
OTHER FINANCING SOURCES (USES):
Transfers In (Note 5)286,900 1,289,587 194,827 - - 1,771,314
Transfers Out (Note 5)- - - (10,000) - (10,000)
Total Other Financing Sources (Uses)286,900 1,289,587 194,827 (10,000) - 1,761,314
Net Change in Fund Balances 401 (158) - (9,916) 5,638 (4,035)
Fund Balances - Beginning 45,754 158 - 54,387 330 100,629
Fund Balances - Ending 46,155$ -$ -$ 44,471$ 5,968$ 96,594$
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, 2012
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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 184,488$ 546,904$ 731,392$
Due From Other Governmental Units 518,337 72,907 591,244
Total Assets 702,825$ 619,811$ 1,322,636$
LIABILITIES AND FUND BALANCES:
Liabilities:
Current Payables 272,710$ 12,835$ 285,545$
Total Liabilities 272,710 12,835 285,545
Fund Balances:
Restricted 430,115 501,854 931,969
Assigned - 105,122 105,122
Total Fund Balances 430,115 606,976 1,037,091
Total Liabilities and Fund Balances 702,825$ 619,811$ 1,322,636$
City of Auburn, Washington
COMBINING BALANCE SHEET
CAPITAL PROJECT FUND
December 31, 2012
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Municipal Nonmajor
Park Local Capital Project
Construction Revitalization Funds
REVENUES:
Taxes:
Property 121,148$ -$ 121,148$
Intergovernmental 901,174 441,782 1,342,956
Charges for Services 11,064 - 11,064
Investment Earnings 1,091 1,475 2,566
Miscellaneous 62,435 - 62,435
Total Revenues 1,096,912 443,257 1,540,169
EXPENDITURES:
Cultural and Recreation 57 - 57
Capital Outlay 1,484,133 1,681,965 3,166,098
Total Expenditures 1,484,190 1,681,965 3,166,155
Excess (Deficiency) of Revenues
Over (Under) Expenditures (387,278) (1,238,708) (1,625,986)
OTHER FINANCING SOURCES (USES):
Transfers In (Note 5)32,626 - 32,626
Total Other Financing Sources (Uses)32,626 - 32,626
Net Change in Fund Balances (354,652) (1,238,708) (1,593,360)
Fund Balances - Beginning 784,767 1,845,684 2,630,451
Fund Balances - Ending 430,115$ 606,976$ 1,037,091$
City of Auburn, Washington
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
CAPITAL PROJECT FUND
For the Year Ended December 31, 2012
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City of Auburn: 2012 CAFR Fund Financial Statements and Schedules
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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 1,585,916$
Total Assets 1,585,916$
FUND BALANCES:
Nonspendable 1,475,580$
Assigned 110,336
Total Fund Balances 1,585,916
Total Liabilities and Fund Balances 1,585,916$
City of Auburn, Washington
BALANCE SHEET
PERMANENT FUND
December 31, 2012
City of Auburn: 2012 CAFR Fund Financial Statements and Schedules
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Cemetery
Endowed
Care
REVENUES:
Increase to Endowment from Lot Sales 48,660$
Investment Earnings 2,986
Total Revenues 51,646
EXPENDITURES:
Total Expenditures -
Excess (Deficiency) of Revenues
Over (Under) Expenditures 51,646
OTHER FINANCING SOURCES (USES):
Transfers Out (Note 5)(22,300)
Total Other Financing Sources (Uses)(22,300)
Net Change in Fund Balance 29,346
Fund Balance - Beginning 1,556,570
Fund Balance - Ending 1,585,916$
For the Year Ended December 31, 2012
City of Auburn, Washington
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
PERMANENT FUND
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City of Auburn: 2012 CAFR Fund Financial Statements and Schedules
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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
Enterprise
Airport Cemetery Funds
ASSETS:
Current Assets:
Cash and Cash Equivalents 930,485$ 217,234$ 1,147,719$
Restricted Cash:
Customer Deposits 48,120 - 48,120
Due From Other Governmental Units 38,915 - 38,915
Inventories - 14,084 14,084
Total Current Assets 1,017,520 231,318 1,248,838
Noncurrent Assets:
Capital Assets:
Land 3,653,343 342,836 3,996,179
Buildings and Equipments 2,643,397 1,022,267 3,665,664
Improvements Other Than Buildings 8,575,896 1,143,417 9,719,313
Construction in Progress 40,048 - 40,048
Less: Accumulated Depreciation (5,404,043) (1,305,704) (6,709,747)
Total Capital Assets (Net of A/D)9,508,641 1,202,816 10,711,457
Total Noncurrent Assets 9,508,641 1,202,816 10,711,457
Total Assets 10,526,161 1,434,134 11,960,295
LIABILITIES:
Current Liabilities:
Current Payables 35,488 49,220 84,708
Employee Leave Benefits - Current 1,851 11,820 13,671
General Obligation Bonds Payable - Current 115,000 - 115,000
Customer Deposits 48,120 - 48,120
Total Current Liabilities 200,459 61,040 261,499
Noncurrent Liabilities:
Employee Leave Benefits 642 4,101 4,743
General Obligation Bonds Payable 885,797 496,890 1,382,687
Total Noncurrent Liabilities 886,439 500,991 1,387,430
Total Liabilities 1,086,898 562,031 1,648,929
NET POSITION:
Invested in Capital Assets, Net of Related Debt 8,507,844 705,926 9,213,770
Unrestricted 931,419 166,177 1,097,596
Total Net Position 9,439,263$ 872,103$ 10,311,366$
City of Auburn, Washington
COMBINING STATEMENT OF NET POSITION
NON-MAJOR ENTERPRISE FUNDS
December 31, 2012
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Total
Nonmajor
Enterprise
Airport Cemetery Funds
OPERATING REVENUES:
Charges for Services 25,823$ 825,161$ 850,984$
Interest - 607 607
Other Operating Revenue 571,865 - 571,865
Total Operating Revenues 597,688 825,768 1,423,456
OPERATING EXPENSES:
Operations & Maintenance 11,092 626,276 637,368
Administration 481,264 279,077 760,341
Depreciation/Amortization 397,164 67,647 464,811
Other Operating Expenses 171 11,422 11,593
Total Operating Expenses 889,691 984,422 1,874,113
Operating Income (Loss)(292,003) (158,654) (450,657)
NON-OPERATING REVENUE (EXPENSE):
Interest Revenue 2,123 392 2,515
Other Non-Operating Revenues 56,203 15,179 71,382
Gain (Loss) on Sale of Capital Assets - (50) (50)
Interest Revenue (Expense)(58,218) (21,773) (79,991)
Total Non-Operating Revenue (Expense)108 (6,252) (6,144)
Income (Loss) Before Contributions & Transfers (291,895) (164,906) (456,801)
Transfers In (Note 5)- 222,300 222,300
Change in Net Position (291,895) 57,394 (234,501)
Total Net Position - Beginning 9,731,158 814,709 10,545,867
Total Net Position - Ending 9,439,263$ 872,103$ 10,311,366$
City of Auburn, Washington
COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION
NON-MAJOR ENTERPRISE FUNDS
For the Year Ended December 31, 2012
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Page 1 of 2
Total
Non Major
Enterprise
Airport Cemetery Funds
CASH FLOWS FROM OPERATING ACTIVITIES:
Cash Received From Users 581,952$ 825,768$ 1,407,720$
Cash Paid to Suppliers (446,144) (270,533) (716,677)
Cash Paid for Taxes (171) (11,422) (11,593)
Cash Paid for Inventory - (3,871) (3,871)
Cash Paid to Employees (25,958) (652,713) (678,671)
Net Cash Provided (Used) By Operating Activities 109,679 (112,771) (3,092)
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:
Operating Grant Received 38,915 - 38,915
Other Non-Operating Gain 17,288 - 17,288
Transfers from Other Funds - 222,300 222,300
Net Cash Provided (Used) by Non-Capital Financing Activities 56,203 222,300 278,503
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES:
Purchase of Capital Assets (140,966) - (140,966)
Capital Grant (38,915) - (38,915)
Principal Payment on Debt (105,000) - (105,000)
Interest Payment on Debt (50,474) (22,267) (72,741)
Net Cash Provided (Used) for Capital and Related Financing Activities (335,355) (22,267) (357,622)
CASH FLOW FROM INVESTING ACTIVITIES:
Interest Received 2,123 15,571 17,694
Net Cash Provided (Used) in Investing Activities 2,123 15,571 17,694
Net Increase (Decrease) in Cash and Cash Equivalents (167,350) 102,833 (64,517)
Cash and Cash Equivalents - Beginning of Year 1,145,955 114,401 1,260,356
Cash and Cash Equivalents - End of Year 978,605$ 217,234$ 1,195,839$
CASH AT END OF YEAR CONSISTS OF:
Cash and Cash Equivalents 930,485 217,234 1,147,719
Restricted Cash - Customer Deposits 48,120 - 48,120
Total Cash 978,605$ 217,234$ 1,195,839$
City of Auburn, Washington
COMBINING STATEMENT OF CASH FLOWS
NON-MAJOR ENTERPRISE FUNDS
For the Fiscal Year Ended December 31, 2012
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Page 2 of 2
Total
Non Major
Enterprise
Airport Cemetery Funds
RECONCILIATION OF NET OPERATING INCOME TO NEW CASH
PROVIDED BY OPERATING ACTIVITIES
Operating Income (Loss)(292,003)$ (158,654)$ (450,657)$
ADJUSTMENTS TO RECONCILE OPERATING INCOME TO
NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES:
Depreciation 397,164 67,647 464,811
Asset (Increases) Decreases:
Inventory - (3,871) (3,871)
Liability Increases (Decreases):
Accounts & Vouchers Payable 20,586 (1,057) 19,529
Deposits Payable (15,736) - (15,736)
Wages & Benefits Payable 17 (2,518) (2,501)
Compensated Absences Payable (349) (14,318) (14,667)
Total Adjustments 401,682 45,883 447,565
Net Cash Provided (Used) by Operating Activities 109,679$ (112,771)$ (3,092)$
SCHEDULE OF NONCASH INVESTING, CAPITAL AND
FINANCING ACTIVITIES
Capital Assets Acquired by Contributed Capital - - -
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, 2012
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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 2,028,912$ 1,707,878$ 3,177,559$ 5,572,541$ 12,486,890$
Customer Accounts - 52,943 - - 52,943
Due From Other Governmental Units - - 2,024 - 2,024
Inventories - - - 153,207 153,207
Total Current Assets 2,028,912 1,760,821 3,179,583 5,725,748 12,695,064
Capital Assets:
Buildings and Equipment - - 5,099,814 12,077,693 17,177,507
Improvements Other than Buildings - - 7,497 65,084 72,581
Less: Accumulated Depreciation - - (3,832,410) (7,157,053) (10,989,463)
Total Capital Assets (Net of A/D)- - 1,274,901 4,985,724 6,260,625
Total Noncurrent Assets - - 1,274,901 4,985,724 6,260,625
Total Assets 2,028,912 1,760,821 4,454,484 10,711,472 18,955,689
LIABILITIES:
Current Liabilities:
Current Payables 231 287,780 294,056 166,182 748,249
Customer Deposits - 3,225 - - 3,225
Employee Leave Benefits - Current - 39,976 67,660 31,456 139,092
Total Current Liabilities 231 330,981 361,716 197,638 890,566
Noncurrent Liabilities
Employee Leave Benefits - 13,869 23,474 10,913 48,256
Total Noncurrent Liabilities - 13,869 23,474 10,913 48,256
Total Liabilities 231 344,850 385,190 208,551 938,822
NET POSITION:
Invested in Capital Assets, Net of Related Debt - - 1,274,901 4,985,724 6,260,625
Unrestricted 2,028,681 1,415,971 2,794,393 5,517,197 11,756,242
Total Net Position 2,028,681$ 1,415,971$ 4,069,294$ 10,502,921$ 18,016,867$
City of Auburn, WashingtonCOMBINING STATEMENT OF NET POSITIONINTERNAL SERVICE FUNDSDecember 31, 2012
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Information Equipment
Insurance Facilities Services Rental Total
OPERATING REVENUES:
Charges for Services -$ 3,437,100$ 4,135,104$ 2,996,940$ 10,569,144$
Other Operating Revenue - 142,348 134,240 - 276,588
Total Operating Revenues - 3,579,448 4,269,344 2,996,940 10,845,732
OPERATING EXPENSES:
Operations & Maintenance - 3,405,814 4,122,233 1,419,330 8,947,377
Administration 159,148 - - 729,957 889,105
Depreciation/Amortization - - 552,388 759,373 1,311,761
Total Operating Expenses 159,148 3,405,814 4,674,621 2,908,660 11,148,243
Operating Income (Loss)(159,148) 173,634 (405,277) 88,280 (302,511)
NON-OPERATING REVENUE (EXPENSE):
Interest Revenue 3,149 3,633 5,817 13,265 25,864
Other Non-Operating Revenues - 13,072 15,171 15,358 43,601
Gain (Loss) on Sale of Capital Assets - - - 29,215 29,215
Total Non-Operating Revenue (Expense)3,149 16,705 20,988 57,838 98,680
Income (Loss) Before Contributions (155,999) 190,339 (384,289) 146,118 (203,831)
Capital Contributions - - 3,230 127,714 130,944
Transfers In (Note 5)- 300,000 100,170 100,170 500,340
Transfers Out (Note 5)- (644,787) - (7,000) (651,787)
Change in Net Position (155,999) (154,448) (280,889) 367,002 (224,334)
Total Net Position - Beginning 2,184,680 1,570,419 4,350,183 10,135,919 18,241,201
Total Net Position - Ending 2,028,681$ 1,415,971$ 4,069,294$ 10,502,921$ 18,016,867$
City of Auburn, Washington
COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION
INTERNAL SERVICE FUNDS
For the Year Ended December 31, 2012
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Page 1 of 2
Information Equipment
Insurance Facilities Services Rental Total
CASH FLOWS FROM OPERATING ACTIVITIES:
Cash Received From Users -$ 3,571,751$ 4,378,405$ 2,996,940$ 10,947,096$
Cash Paid to Suppliers (156,078) (2,523,563) (2,312,598) (1,567,614) (6,559,853)
Cash Paid for Taxes (3,146) - - - (3,146)
Cash Paid for Inventory - - - (35,178) (35,178)
Cash Paid to Employees - (930,692) (1,847,971) (598,591) (3,377,254)
Net Cash Provided (Used) By Operating Activities (159,224) 117,496 217,836 795,557 971,665
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:
Operating Grant Received - 13,072 - 1,713 14,785
Other Non-Operating Gain - - - 3,275 3,275
Transfers In - 300,000 100,170 100,170 500,340
Transfers Out - (644,787) - (7,000) (651,787)
Net Cash Provided (Used) by Non-Capital Financing Activities - (331,715) 100,170 98,158 (133,387)
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES:
Proceeds from Sale of Equipment - - - 208,038 208,038
Purchase of Capital Assets - - (508,567) (1,406,375) (1,914,942)
Proceeds from Other Governments - - 15,171 - 15,171
Proceeds from Insurance Settlement - - - 10,370 10,370
Net Cash Provided (Used) for Capital and Related Financing Activities - - (493,396) (1,187,967) (1,681,363)
CASH FLOW FROM INVESTING ACTIVITIES:
Proceeds from Sale of Investments - - - 2,006,120 2,006,120
Interest Received 3,149 3,633 5,817 14,904 27,503
Net Cash Provided (Used) in Investing Activities 3,149 3,633 5,817 2,021,024 2,033,623
Net Increase (Decrease) in Cash and Cash Equivalents (156,075) (210,586) (169,573) 1,726,772 1,190,538
Cash and Cash Equivalents - Beginning of Year 2,184,987 1,918,464 3,347,132 3,845,769 11,296,352
Cash and Cash Equivalents - End of Year 2,028,912$ 1,707,878$ 3,177,559$ 5,572,541$ 12,486,890$
CASH AT END OF YEAR CONSISTS OF:
Cash and Cash Equivalents 2,028,912 1,707,878 3,177,559 5,572,541 12,486,890
Total Cash 2,028,912$ 1,707,878$ 3,177,559$ 5,572,541$ 12,486,890$
City of Auburn, Washington
COMBINING STATEMENT OF CASH FLOWS
INTERNAL SERVICE FUNDS
For the Fiscal Year Ended December 31, 2012
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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)(159,148)$ 173,634$ (405,277)$ 88,280$ (302,511)$
ADJUSTMENTS TO RECONCILE OPERATING INCOME TO
NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES:
Depreciation - - 552,388 759,373 1,311,761
Asset (Increases) Decreases:
Accounts Receivable - (7,697) 109,061 - 101,364
Inventory - - - (35,178) (35,178)
Liability Increases (Decreases):
Accounts & Vouchers Payable (76) (53,061) (49,049) (16,075) (118,261)
Wages & Benefits Payable - (420) 3,575 3,868 7,023
Compensated Absences Payable - 5,040 7,138 (4,711) 7,467
Total Adjustments (76) (56,138) 623,113 707,277 1,274,176
Net Cash Provided (Used) by Operating Activities (159,224)$ 117,496$ 217,836$ 795,557$ 971,665$
SCHEDULE OF NONCASH INVESTING, CAPITAL AND
FINANCING ACTIVITIES
Capital Assets Acquired by Contributed Capital Increase (Decrease)- - 3,230 127,714 130,944
Total Non Cash Investing, Capital and Financing Activities -$ -$ 3,230$ 127,714$ 130,944$
City of Auburn, Washington
COMBINING STATEMENT OF CASH FLOWS
INTERNAL SERVICE FUNDS
For the Fiscal Year Ended December 31, 2012
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143
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
1/1/2012 Additions Deductions 12/31/2012
ASSETS:
Cash and Cash Equivalents 1,448,369$ 2,905,167$ 3,121,787$ 1,231,749$
Other Current Assets 26,022 82,352 107,320 1,054
Total Assets 1,474,391$ 2,987,519$ 3,229,107$ 1,232,803$
LIABILITIES:
Due to Other Government Units 1,474,391 4,336,494 4,578,082 1,232,803
Total Liabilities 1,474,391$ 4,336,494$ 4,578,082$ 1,232,803$
City of Auburn, Washington
STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
AGENCY FUND
For the Fiscal Year Ended December 31, 2012
City of Auburn: 2012 CAFR Statistical Section
City of Auburn
STATISTICAL SECTION
December 31, 2012
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 position by components ............................................................................................... 146
Schedule 2 Changes in net position ...................................................................................................... 147
Schedule 3 Fund balances, government funds ....................................................................................... 148
Schedule 4 Changes in fund balances, government funds ...................................................................... 149
Schedule 5 Tax revenues by source, government funds ........................................................................ 150
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 ........................................................................................................ 151
Schedule 7 Property tax data ............................................................................................................... 152
Schedule 8 Property tax levies and collections ...................................................................................... 154
Schedule 9 Principal taxpayers-property taxes-sales taxes ...................................................................... 155
Schedule 10 Retail tax collections by sector ............................................................................................ 156
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 ..................................................................................... 157
Schedule 12 Computation of legal debt margin ...................................................................................... 158
Schedule 13 Legal debt margin ratios ...................................................................................................... 158
Schedule 14 Computation of net direct and estimated overlapping debt ................................................. 159
Schedule 15 Ratios of net general bonded debt to assessed value ........................................................... 160
Schedule 16 Pledged revenue bond coverages ........................................................................................ 161
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 ............................................................................... 162
Schedule 18 Major employers ................................................................................................................ 163
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 .............................................................................................. 164
Schedule 20 Operating indicators by department .................................................................................... 165
Schedule 21 Capital indicators by department ........................................................................................ 166
145
City of Auburn: 2012 CAFR Statistical Section
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Governmental activities:Invested in capital assets, net of related debt167,057,262$ 171,921,373$ 194,121,232$ 200,814,063$ 212,611,232$ 303,564,348$ 314,691,982$ 320,506,701$ 340,941,112$ 354,899,294$
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 13,164,116
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 43,245,050 Total governmental activities net position219,988,976 226,027,225 241,658,877 251,801,562 263,904,363358,485,448 371,188,427 382,421,532 400,422,165 411,308,460
Business-type activities:
Invested in capital assets, net of related debt104,513,351 106,783,634 115,137,273 125,265,152 130,515,163 144,626,496 150,621,492 152,343,987 166,289,542 173,709,864
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 4,719,058
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 30,439,381 Total business-type activities net position135,922,186 140,602,553 149,889,460 157,946,154 172,397,819 181,419,899 182,238,880 185,093,449 200,967,498 208,868,303
Primary government:
Invested in capital assets, net of related debt271,570,613 278,705,007 309,258,505 326,079,215 343,126,395 448,190,844 465,313,474 472,850,688 507,230,654 528,609,158
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 17,883,174
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 73,684,431 Total primary government net position 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$ 620,176,763$
Source: City of Auburn, Finance Department
City of Auburn, WashingtonSCHEDULE 1
NET POSITION BY COMPONENTS
Last Ten Fiscal Years
(Accrual Basis of Accounting)
146
City of Auburn: 2012 CAFR Statistical Section
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
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$ 9,441,887$
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 27,339,301
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 15,736,610 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 2,535,877
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 8,310,210
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 2,914,335
Health and human services 639,678 597,423 602,726 763,156 416,456 776,224 527,029 578,247 619,172 633,175
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 2,336,960
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 69,248,355
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 9,655,724
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 19,680,724
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 8,025,729
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 11,305,322
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 1,912,174
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 1,954,104
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 52,533,777
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$ 121,782,132$
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$ 897,521$ 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 1,016,191
Transportation 570,100 447,036 1,052,110 631,340 1,930,504 1,272,751 1,587,850 960,532 1,042,147 1,819,851
Physical Environment 237,772 365,681 244,766 436,503 576,539 257,780 147,996 86,306 103,590 36,766
Culture and Recreation 597,300 654,417 726,753 881,318 1,245,122 917,544 1,048,390 962,558 1,182,688 880,380
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 3,266,188 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 7,916,897
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 3,560,707
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 17,835,784
Total governmental activities program revenues19,505,151 14,264,608 21,573,638 15,764,050 22,187,013 106,550,907 23,915,992 21,574,725 30,963,644 29,313,388 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 50,710,688
Operating grants and contributions 33,384 33,384 54,999 47,961 43,263 55,024 87,454 70,841 116,735 97,052
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 7,248,835
Total business-type activities program revenues38,252,617 36,131,728 40,571,295 40,262,487 51,306,890 50,609,070 44,417,792 50,923,694 61,143,958 58,056,575
Total primary government program revenues57,757,768 50,396,336 62,144,933 56,026,537 73,493,903 157,159,977 68,333,784 72,498,419 92,107,602 87,369,963
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) (39,934,967)
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 5,522,798
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)$ (34,412,169)$
General revenues and other changes in net position
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$ 14,970,136$ 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 16,679,278
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 3,281,816
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 8,856,498
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 2,141,620
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 4,679,333
Investment earnings 769,239 708,259 1,465,102 2,454,694 2,993,174 1,589,837 570,798 379,316 224,593 178,618
Miscellaneous 96,168 192,469 564,416 69,037 (406,847) 2,751,495 67,223 214,190 775,969 547,391
Transfers (1,225,054) 627,000 194,286 (570,588) (371,660) 427,740 170,605 1,463,444 (483,107) (513,428)
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 50,821,262
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 82,903
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 1,781,676
Transfers 1,225,054 (627,000) (194,286) 570,588 371,660 (427,740) (170,605) (1,463,444) 483,107 513,428
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 2,378,007
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$ 53,199,269$
Change in net position
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 10,886,295
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 7,900,805
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$ 18,787,100$
Source: City of Auburn, Finance Department
City of Auburn, WashingtonSCHEDULE 2
CHANGES IN NET POSITION
Last Ten Fiscal Years
(Accrual Basis of Accounting)
147
City of Auburn: 2012 CAFR Statistical Section
2003 2004 2005 2006 2007 2008 2009 2010 2011 (1)2012
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 - 370,400
Restricted - -
Committed - -
Assigned 7,082,130 5,935,567
Unassigned 14,193,365 17,395,933
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 23,701,900
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 1,475,580
Restricted 12,781,743 11,688,536
Committed 3,134,449 3,258,257
Assigned 3,120,372 2,388,684
Unassigned - -
Total All Other Governmental Funds25,073,882$ 25,956,878$ 23,686,735$ 27,031,176$ 24,670,008$29,105,363$ 27,297,959$29,801,617$ 20,490,104$ 18,811,057$
(1)GASB Statement No. 54 was implemented in FY 2011. See Note 1E of the Notes to the Basic Financial Statements.
Source: City of Auburn, Finance Department
City of Auburn, Washington
SCHEDULE 3FUND BALANCES, GOVERNMENT FUNDS
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
148
City of Auburn: 2012 CAFR Statistical Section
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
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$ 46,003,582$
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 2,344,643
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 20,045,299
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 4,006,762
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 1,592,957
Special assessments 177,588 127,976 153,627 75,574 52,291 57,402 107,597 43,502 32,972 39,115
Investment earnings 300,213 336,442 1,175,258 1,477,368 2,456,291 1,363,375 484,696 386,890 237,056 200,826
Miscellaneous 1,102,089 2,452,468 1,247,252 1,865,079 877,473 1,296,349 1,142,428 3,023,589 2,322,580 871,191
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 75,104,375
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 8,761,452
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 24,039,435
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 20,766,134
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 2,526,526
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 2,876,558
Health and human services 639,678 597,423 602,726 763,156 416,456 776,224 527,029 568,911 616,717 616,583
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 7,228,345
Capital outlay (1)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 4,007,018
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 1,219,137
Interest / other 333,439 248,005 315,960 247,551 203,266 264,997 296,241 1,775,746 1,761,334 2,245,858
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 74,287,046
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) 817,329
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 6,643,116
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) (7,005,097)
Capital leases - 10,350,000 - - 695,504 17,728 24,549,186 - - -
Insurance recoveries - - - - - - 114,607 200,642 154,200 291,210
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 26,930 119,053 811,353 127,959 - 2,698,677 127,741 - 1,331,092 800
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 (69,971)
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)$ 747,358$
Debt service as a percentage of noncapital3.56%2.37%19.81%1.39%1.12%1.42%1.54%37.50%5.44%6.64%
expenditures
(1)Capital outlay reported in governmental funds is $4,007,018 plus $18,058,705 which is reported for each functional
activity with the other funds results in total capital outlay of $22,065,723 as reported on the Reconciliation of the
Statement of Renevues, Expenditures, and Changes in Fund Balances of Government Funds to the Statement of Activities.
Source: City of Auburn, Finance Department
City of Auburn, Washington
SCHEDULE 4CHANGES IN FUND BALANCES, GOVERNMENT FUNDS
Last Ten Fiscal Years
(Modified Accrual Basisi of Accouting)
149
City of Auburn: 2012 CAFR Statistical Section
Fiscal SalesInterfund
YearProperty & UseUtility UtilityExciseOtherTotal
200312,396,502$ 13,970,383$ 1,696,389$ 4,225,725$ 3,401,498$ 44,095$ 35,734,592$
200412,680,361 15,429,527 1,714,102 5,012,010 3,384,515 38,284 38,258,799
200513,319,740 16,333,169 1,792,136 5,349,713 4,633,037 40,058 41,467,853
200614,582,829 17,784,374 1,983,652 5,893,041 4,568,549 54,716 44,867,161
200715,666,016 18,958,484 2,095,901 6,073,429 3,862,692 65,129 46,721,651
200812,040,124 17,620,661 2,507,213 8,075,355 3,477,517 60,660 43,781,530
200912,914,943 14,727,496 3,437,526 9,071,485 2,310,076 52,480 42,514,006
201014,283,303 15,657,081 2,788,083 8,886,964 1,389,030 65,234 43,069,695
201114,683,329 16,213,244 2,948,297 9,049,689 1,859,738 58,678 44,812,975
201214,987,636 16,679,278 3,281,816 8,856,498 2,141,620 56,734 46,003,582
Change
2003-201220.9%19.4%93.5%109.6%-37.0%28.7%28.7%
Source: City of Auburn, Finance Department
TAX REVENUES BY SOURCE, GOVERNMENT FUNDS
Last Ten Fiscal Years
SCHEDULE 5
City of Auburn, Washington
$0
$10,000
$20,000
$30,000
$40,000
$50,000
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Th
o
u
s
a
n
d
s
Figure 5: Tax Revenues by Source
2003-2012
Excise & other
Utility
Interfund utility
Sales & use
Property
150
City of Auburn: 2012 CAFR Statistical Section
State TotalTotal
FiscalPropertyPersonalLand andAssessedDirect
Yearand OtherProperty Building ValueRate
2003 140,531$ 787,022$ 3,344,271$ 4,271,824$ 2.87
2004150,458 742,255 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
2012 124,204 709,024 6,392,321 7,225,550 2.08
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
$8,000,000
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Figure 6: Assessed Value by Type
2003 -2012
State property
Personal property
Land and building
151
City of Auburn: 2012 CAFR Statistical Section
Page 1 of 2
Item 2003200420052006
Assessed and estimated actual values (1)
Estimated and actual value (in thousands)4,271,824$ 4,492,179$ 4,676,301$ 5,099,469$
Assessed value (in thousands)4,271,824 4,492,179 4,676,301 5,099,469
Ratio of assessed to actual 100%100%100%100%
Property tax rates (1)
Direct regular and special
General fund 2.92857$ 2.87319$ 2.88000$ 2.86520$
Debt service funds - - - -
Subtotal 2.92857 2.87319 2.88000 2.86520
Overlapping regular and special (1)
Auburn School District 5.35720$ 5.34914$ 5.37195$ 5.37383$
King County 1.34948 1.43146 1.38229 1.32869
State of Washington 2.89680 2.75678 2.68951 2.49787
Port of Seattle 0.25895 0.25402 0.25321 0.23330
Emergency Medical Services 0.24143 0.23717 0.23182 0.21982
Hospital District 0.09254 0.09200 0.09039 0.59000
King County Library District 0.54568 0.53653 0.53255 0.53424
Valley Regional Fire Authority - - - -
King County Flood Zone - - - -
King County Ferry District - - - -
Subtotal 10.74208 10.65710 10.55172 10.77775
Total direct and overlapping 13.67065$ 13.53029$ 13.43172$ 13.64295$
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 2008 decrease in property tax levy to $1.48 is due to the incorporation of the Valley
Regional Fire Authority effective 1/1/2007. The VRFA will assess its own property tax levy
in 2008, partially offsetting what was previously levied by the City.
SCHEDULE 7
PROPERTY TAX DATA
Last Ten Fiscal Years
City of Auburn, Washington
$1.00
$1.50
$2.00
$2.50
$3.00
200320042005200620072008 (2)2009201020112012
Pe
r
$
1
,
0
0
0
o
f
A
s
s
e
s
s
e
d
V
a
l
u
a
t
i
o
n
Figure 7a: Ten Years City Property Tax Rates2003 -2012
152
City of Auburn: 2012 CAFR Statistical Section
Page 2 of 2
2007 2008 (2)2009201020112012
5,765,028$ 6,556,690$ 8,723,864$ 7,765,878$ 7,564,507$ 7,225,550$
5,765,028 6,556,690 8,723,864 7,765,878 7,564,507 7,225,550
100%100%100%100%100%100%
2.73076$ 1.48385$ 1.48678$ 1.82336$ 1.93458$ 2.07527$
- - - - - -
2.73076 1.48385 1.48678 1.82336 1.93458 2.07527
4.94903$ 4.40970$ 4.37709$ 5.09382$ 5.99562$ 6.14004$
1.28956 1.20770 1.09772 1.28499 1.33816 1.41588
2.32535 2.13233 1.96268 2.22253 2.27990 2.42266
0.23158 0.22359 0.19700 0.21597 0.22366 0.22982
0.20621 0.30000 0.27404 0.30000 0.30000 0.30000
0.55652 0.50854 0.47141 0.53290 0.55753 0.50000
0.50027 0.45336 0.41736 0.48526 0.56621 0.56992
- 1.00000 1.10995 1.17910 1.17977 1.18925
- 0.10000 0.91230 0.10514 0.10976 0.11616
- 0.05500 0.05018 0.00348 0.00360 0.00372
10.05852 10.39022 10.86973 11.42319 12.55421 12.88745
12.78928$ 11.87407$ 12.35651$ 13.24655$ 14.48879$ 14.96272$
$0.00
$2.00
$4.00
$6.00
$8.00
$10.00
$12.00
$14.00
2003 2004 2005 2006 2007 2008 (2)2009 2010 2011 2012
Do
l
l
a
r
s
(R
a
t
e
P
e
r
T
h
o
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s
a
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d
)
Figure 7b: Property Tax Rates
Last Ten Fiscal Years
Hospital District
King County Ferry District
King County Flood Zone
Valley Regional Fire Authority
King County Library District
Emergency Medical Services
Port of Seattle
State of Washington
King County
Auburn School District
153
City of Auburn: 2012 CAFR Statistical Section
Total Tax Collections
FiscalLevy for in Subsequent Current Year
YearFiscal YearAmount% of Levy Years Amount% of LevyLevy B
King County:
200312,082,210$ 11,765,654$ 97.4%315,783$ 12,081,437$ 100.0%$
200412,223,173 12,031,253 98.4%178,573 12,209,826 99.9%
200512,639,133 12,393,241 98.1%240,879 12,634,120 100.0%
200613,399,840 13,164,248 98.2%228,999 13,393,247 100.0%
200713,845,638 13,605,301 98.3%228,945 13,834,246 99.9%
20089,553,486 9,406,398 98.5%124,483 9,530,881 99.8%
200911,670,838 11,390,684 97.6%182,031 11,572,715 99.2%
201012,721,658 12,459,564 97.9%172,604 12,632,168 99.3%
201113,081,731 12,846,996 98.2%132,388 12,979,384 99.2%
201213,404,135 13,167,731 98.2%- 13,167,731 98.2%
$
Pierce County:
2003435,886$ 423,834$ 97.2%12,052$ 435,886$ 100.0%$
2004579,828 566,356 97.7%13,472 579,828 100.0%
2005783,135 769,223 98.2%13,912 783,135 100.0%
20061,242,039 1,220,642 98.3%21,378 1,242,020 100.0%
20071,851,622 1,816,706 98.1%34,876 1,851,582 100.0%
20081,226,835 1,177,665 96.0%44,286 1,221,951 99.6%
20091,264,690 1,223,668 96.8%17,092 1,240,760 98.1%
20101,494,931 1,451,377 97.1%31,396 1,482,773 99.2%
20111,425,494 1,401,537 98.3%15,773 1,417,310 99.4%
20121,496,492 1,478,223 98.8%- 1,478,223 98.8%
$
alance
773
13,347
5,013
6,593
11,392
22,605
98,123
89,490
102,347
236,404
586,088
-
-
-
19
40
4,884
23,930
12,158
8,184
18,268
67,483
Total current levy balance $
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
653,571
95.0%
95.5%
96.0%
96.5%
97.0%
97.5%
98.0%
98.5%
99.0%
99.5%
100.0%
2003200420052006200720082009201020112012
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
154
City of Auburn: 2012 CAFR Statistical Section
Percentage Percentage
of Total City of Total City
Assessed Taxable Assessed Taxable
Taxpayer ValueRankAssessed Value ValueRankAssessed Value
Boeing Company 468,071,713$ 1 6.48%620,021,873$ 1 14.51%
Glimcher Realty Trust (Supermall)83,858,955 2 1.16%106,845,000 2 2.50%
Safeway 79,636,302 3 1.10%-
EPropertyTax Inc.72,683,500 4 1.01%-
Universal Health Services 67,280,010 5 0.93%21,251,800 8 0.50%
Puget Sound Energy 59,804,161 6 0.83%53,776,244 3 1.26%
Muckleshoot Indian Tribe 56,630,000 7 0.78%-
Belara Communities LLC 48,145,500 8 0.67%-
PPF Industrial (formerly UPS Supply Chain Solutions)43,795,600 9 0.61%-
Qwest Corporation 24,148,433 10 0.33%-
McElroy George & Assoc. Inc.50,716,500 4 1.19%
La Terra Limited Partnership - 35,509,800 5 0.83%
U.S. West Communications - 34,187,146 6 0.80%
Fritz Companies - 21,842,100 7 0.51%
Roundup Co. (Fred Meyer)- 15,888,434 9 0.37%
West Valley 29 Partners - 13,411,500 10 0.31%
TOTALS 1,004,054,174$ 13.90%973,450,397$ 22.79%
Source: King County and Pierce County Departments of Assessments
Total assessed value for 2012:7,225,549,856$ Total assessed value for 2003:4,271,824,000$
2012 2003
City of Auburn, Washington
SCHEDULE 9a
PRINCIPAL TAXPAYERS-PROPERTY TAXES
Current Year and Nine Years Ago
0%
5%
10%
15%
20%
25%
2003 2012
FIGURE 9a-1: TOP TAXPAYER ASSESSED VALUE AS A
PERCENTAGE OF TOTAL ASSESSED VALUE
Current Year and Nine Years Ago
0%
5%
10%
15%
20%
25%
2003 2012
FIGURE 9a-2: TOP 10 TAXPAYERS ASSESSED VALUE AS A PERCENTAGE OF TOTAL ASSESSED VALUE
Current Year and Nine Years Ago
Percentage Percentage
Sales of Total CitySales of Total City
Tax Sales TaxesTax Sales Taxes
Received Sector (1)RankReceivedReceived Sector (1)RankReceived
436,288$ General Retail13.3%
311,437 Automotive22.4%
301,142 Automotive32.3%
282,442 Automotive42.2%
242,384 Automotive51.9%
230,114 General Retail61.8%
223,789 Automotive71.7%
214,560 General Retail81.6%
212,602 Automotive91.6%
200,059 Automotive101.5%
2,654,817$ 20.4%
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
2012 2003
NOT AVAILABLE
City of Auburn, Washington
SCHEDULE 9b
PRINCIPAL TAXPAYERS-SALES TAXES
Current Year and Ten Years Ago
155
City of Auburn: 2012 CAFR Statistical Section
2003200420052006200720082009201020112012
RETAIL TRADE SECTOR
Automotive/gas 2,862$ 2,893$ 3,326$ 3,428$ 3,643$ 3,255$ 2,559$ 2,553$ 2,785$ 3,019$
Furniture 318 438 218 263 268 241 220 194 218 226
Electronics & appliances - - 451 288 262 242 132 121 127 145
Building materials 412 479 488 594 615 521 358 389 383 425
Food stores 401 395 358 346 378 360 352 354 331 341
Health & personal care - - 120 130 143 152 150 144 148 149
Apparel 649 765 836 874 899 873 781 752 754 772
General merchandise 909 990 970 941 974 872 833 801 968 967
Food/Drink 596 651 - - - - - - - -
Misc retail trade 864 905 724 939 1,334 1,234 755 834 851 897
7,011 7,515 7,491 7,803 8,516 7,750 6,140 6,142 6,566 6,943
SERVICE SECTOR
Information - - 506 507 531 489 457 979 481 396
Finance & insurance - - 86 84 85 85 83 68 66 53
Real estate, rental, leasaing - - 294 311 330 394 304 288 304 326
Professional, scientific, technical - - 119 116 162 146 200 191 175 173
Administrative, supply & remediation service - - 197 195 301 261 261 239 295 334
Educational - - 81 81 87 91 42 56 53 54
Healthcare & social serivces - - 45 33 88 98 61 37 41 115
Arts & entertainment - - 104 126 172 171 147 154 149 153
Accomodation & food service - - 764 833 870 915 827 806 839 921
Other services - - 477 492 502 457 485 493 482 530
- - 2,673 2,779 3,128 3,107 2,867 3,310 2,882 3,056
OTHER SECTORS
Services (1)1,182 1,152 - - - - - - - -
Construction 1,514 2,402 2,008 2,453 2,240 1,647 1,368 1,322 1,296 1,221
Manufacturing 882 793 414 486 625 643 383 411 583 405
Transportation 400 401 31 26 22 76 31 29 77 55
Wholesaling 1,674 1,795 2,313 2,571 2,943 2,306 1,073 1,180 1,260 1,297
Banking 98 127 - - - - - - - -
Other business 121 108 73 72 143 72 47 128 224 61
Subtotal - other sectors 5,871 6,779 4,839 5,607 5,973 4,744 2,902 3,071 3,439 3,038
GRAND TOTAL 12,882$ 14,294$ 15,003$ 16,189$ 17,617$ 15,601$ 11,909$ 12,523$ 12,887$ 13,037$
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%0.26%0.36%0.36%0.36%0.36%0.36%
Regional Transit Authority 0.40%0.40%0.40%0.40%0.40%0.40%0.90%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%8.90%9.00%9.50%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%0.00%
Motor vehicles-for multimodal transportation0.30%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, WashingtonSCHEDULE 10
RETAIL 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
$18,000
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
(T
h
o
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s
a
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d
s
)
FIGURE 10: RETAIL TAX COLLECTIONSCity of Auburn: 2003 -2012
Other
Wholesaling
Manufacturing
Contracting
Services
Other Retail
Automotive
156
City of Auburn: 2012 CAFR Statistical Section
GeneralSpecial Public WorksTotalPercentage
FiscalObligationAssessmentCapital RevenueTrust FundPrimaryof PersonalPer
YearBondsBondsLeases Bonds LoansGovernment Income (1)Capita
20037,088,000$ 347,904$ 689,643$ 9,230,000$ 7,428,695$ 24,784,242$ 3.27%546.45$
20046,754,000 228,354 10,322,787 8,220,000 7,066,042 32,591,183 4.16%706.43
20056,478,000 132,354 - 7,020,000 8,679,509 22,309,863 2.68%469.98
200611,210,000 36,827 - 5,905,000 9,853,410 27,005,237 3.04%551.63
200710,650,000 36,827 663,553 4,730,000 10,149,419 26,229,799 2.77%519.71
200810,053,000 36,827 646,799 3,495,000 9,730,324 23,961,950 1.82%357.61
200936,160,850 36,827 25,193,600 2,200,000 10,014,943 73,606,220 4.11%1,090.70
201064,816,850 - 604,685 23,220,000 10,296,024 98,937,559 5.35%1,449.21
201163,430,850 - 566,212 22,930,000 9,491,810 96,418,872 5.07%1,363.68
201262,004,850 - 524,498 22,625,000 8,687,599 93,841,947 5.01%1,317.26
Source: City of Auburn, Finance Department
(1) Personal income data provided by US Census Bureau estimate for 2012, 2011; Hebert Research for 2004, 2005 and 2010 only;
other years are city estimates
City of Auburn, Washington
Last Ten Fiscal Years
Govrnmental Activities Business-type Activities
RATIOS OF OUTSTANDING DEBT BY TYPE
SCHEDULE 11
$0
$300
$600
$900
$1,200
$1,500
2003200420052006200720082009201020112012
FIGURE 11: PER CAPITA DEBT
Last Ten Fiscal Years
157
City of Auburn: 2012 CAFR Statistical Section
Parks and Utility Total
CouncilmanicExcess Levy Open SpacesPurposeCapacity
December 31, 2012 - Total Assessed Value:
6,909,168,076$
2.5% of Assessed Value -$ 172,729,202$ 172,729,202$ 172,729,202$ 518,187,606$
1.5% of Assessed Value 103,637,521 (103,637,521) - - -
Statutory Debt Limit 103,637,521 69,091,681 172,729,202 172,729,202 518,187,606
Debt Outstanding 63,815,473 - - - 63,815,473
Net Debt Outstanding 63,815,473 - - - 63,815,473
Remaining Debt Capacity 39,822,048$ 69,091,681$ 172,729,202$ 172,729,202$ 454,372,133$
General Capacity Special Purpose Capacity
City of Auburn, Washington
SCHEDULE 12
COMPUTATION OF LEGAL DEBT MARGIN
As of December 31, 2012
2003200420052006200720082009201020112012
Debt Limit 336,913$ 350,782$ 350,782$ 432,377$ 489,472$ 653,979$ 577,669$ 565,822$ 539,989$ 518,188$
Total net debt
applicable to limit 3,576 17,055 17,055 11,352 10,757 10,771 62,671 66,868 65,364 63,815
Legal debt margin 333,337$ 333,727$ 333,727$ 421,025$ 478,715$643,208$514,998$ 498,954$ 474,625$ 454,372$
Total net debt
applicable to the limit
as a percentage of debt limit1.06%4.86%4.86%2.63%2.20%1.65%10.85%11.82%12.10%12.32%
City of Auburn, Washington
SCHEDULE 13
LEGAL DEBT MARGIN RATIOS
Last Ten Fiscal Years
(Expressed in Thousands)
158
City of Auburn: 2012 CAFR Statistical Section
Net DebtPercent Bonded Amount
Outstanding Applicable(3)Applicable
Net direct debt:
Net direct debt - City of Auburn (1)58,967,713$
Estimated net overlapping debt: (2)
King County 845,987,000$ 2.04%17,258,135$
Port of Seattle 312,005,000 2.04%6,364,902
School District No. 210 209,933,746 2.22%4,660,529
School District No. 408 84,840,000 77.83%66,030,972
School District No. 415 188,646,249 1.91%3,603,143
Rural Library District 136,748,287 3.27%4,471,669
Valley Regional Fire Authority 17,210,000 89.96%15,482,116
Pierce County 160,196,940 0.95%1,521,871
Total estimated net overlapping debt 119,393,337
Total direct and overlapping debt 178,361,050$
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, 2012
City of Auburn, Washington
SCHEDULE 14
159
City of Auburn: 2012 CAFR Statistical Section
Ratio
of Net
DebtNetBondedGross
AssessedGrossServiceBondedDebt toBonded
Fiscal Value (1)BondedAmount (3)DebtAssessedDebt per
YearPopulation(Thousands) Debt (2)Available(Thousands)ValueCapita
200345,546 4,271,824$ 7,088,000$ 5,278$ 7,083$ 0.17%156$
200446,135 4,492,179 6,754,000 7,248 6,747 0.15%146
200547,470 4,676,301 6,478,000 14,256 6,464 0.14%136
200648,955 5,099,469 11,210,000 25,372 11,185 0.22%229
200750,470 5,765,028 10,650,000 35,810 10,614 0.18%211
200867,005 6,556,690 10,053,000 41,603 10,011 0.15%150
200967,485 8,723,864 36,160,850 37,746 36,123 0.41%536
201068,270 7,765,878 64,816,850 46,058 64,771 0.83%949
201170,705 7,564,507 63,430,850 45,754 63,385 0.84%897
201271,240 7,225,550 62,004,850 46,155 61,959 0.86%870
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
$1,000
-
0.0020
0.0040
0.0060
0.0080
0.0100
2003200420052006200720082009201020112012
De
b
t
/
A
s
s
e
s
s
e
d
V
a
l
u
e
Year
FIGURE 15: BONDED DEBT RATIOS
Last Ten Fiscal Years
Debt/AV Debt/Pop
160
City of Auburn: 2012 CAFR Statistical Section
Direct(2)Debt Service Requirements
Gross (1)OperatingNet Revenue Times
YearRevenueExpenseAvailablePrincipalInterest Total (3)Coverage
200321,243,060$ 15,611,753$ 5,631,307$ 1,407,343$ 603,357$ 2,010,700$ 2.80
200421,958,359 16,834,837 5,123,522 1,633,533 539,754 2,173,287 2.36
200524,562,487 18,078,747 6,483,740 1,800,568 417,834 2,218,402 2.92
200627,087,351 19,615,315 7,472,036 1,718,412 333,016 2,051,428 3.64
200727,492,779 21,237,294 6,255,485 1,914,523 281,065 2,195,588 2.85
200827,665,498 23,149,802 4,515,696 1,942,938 279,765 2,222,703 2.03
200931,265,941 27,314,611 3,951,330 2,002,938 217,283 2,220,221 1.78
201033,115,398 28,749,877 4,365,520 1,056,094 150,675 1,206,769 3.62
201134,909,200 29,201,088 5,708,112 1,013,830 1,248,612 2,262,442 2.52
201238,119,472 30,974,506 7,144,966 1,028,830 1,277,285 2,306,115 3.10
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.
(3) Includes both parity and non-parity debt.
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
$8,000,000
20032004 20052006200720082009201020112012
YEAR
FIGURE 16: UTILITY BOND COVERAGES
Last Ten Fiscal Years
Net revenue available Debt service requirements
161
City of Auburn: 2012 CAFR Statistical Section
Item 2003200420052006200720082009201020112012
School enrollment (1)13,461 13,838 13,760 14,367 14,559 14,716 14,589 14,482 14,363 14,408
Rate of unemployment (2)8.3%7.0%5.4%4.8%4.2%5.5%9.5%9.6%8.7%7.7%
Population (3)45,355 46,135 47,470 48,955 50,470 67,005 67,485 68,270 70,705 71,240
Personal income (thousands of dollars) (4)1,094,254$ 1,161,714$ 1,247,566$ 1,342,818$ 1,444,871$ 2,024,087$ 1,989,661$ 1,848,752$ 1,901,540$ 1,871,973$
Per capita personal income (4)24,126$ 25,181$ 26,281$ 27,430$ 28,628$ 30,208$ 29,483$ 27,080$ 26,894$ 26,277$
Housing units (5)
One unit 8,745 8,990 9,105 9,402 9,625 14,186 14,235 14,333 14,823 14,957
Two or more 7,790 8,078 8,655 8,943 9,623 10,375 10,391 10,426 10,592 10,631
Mobile home or special 2,474 2,421 2,346 2,407 2,382 2,761 2,782 2,794 2,635 2,618
Total housing units 19,009 19,489 20,106 20,752 21,630 27,322 27,408 27,553 28,050 28,206
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 TRENDS
Last Ten Fiscal Years
0
20,000
40,000
60,000
80,000
2003200420052006200720082009201020112012
FIGURE 17: POPULATION AND HOUSING TRENDS
Last Ten Fiscal Years
Population Total housing units
162
City of Auburn: 2012 CAFR Statistical Section
Percentage Percentage
of Total City of Total City
Employer Product/service EmployeesRankEmployment EmployeesRankEmployment
The Boeing Company Aerospace 3,970 112.0%5,085 126.1%
Auburn School District Education 1,850 25.6%1,878 39.7%
Muckleshoot Tribal EnterprisesGaming 1,500 34.5%2,550 213.1%
The Outlet Collection Retail 1,100 43.3%
Green River Community CollegeEducation 635 5/61.9%
Multicare Auburn Medical CenterHospital 635 5/61.9%657 43.4%
Social Security AdministrationGov't / public offices 600 71.8%603 53.1%
Emerald Downs RacetrackHorse racing 500 8/91.5%600 63.1%
Zones, Inc.Technology reseller 500 8/91.5%550 72.8%
Federal Aviation AdministrationFederal government 450 101.4%500 82.6%
City of Auburn City government 392 1.2%447 92.3%
General Services AdministrationFederal government 350 1.1%325 101.7%
TOTALS 12,482 37.8%13,195 67.8%
Sources: WA Employment Security Department
2012 - City of Auburn, Planning & Development
2003 - Auburn School District 2003 CAFR
2012 2003
City of Auburn, Washington
SCHEDULE 18
MAJOR EMPLOYERS
Current Year and Nine Years Ago
0%
20%
40%
60%
80%
100%
2003 2012
FIGURE 18a: AUBURN EMPLOYMENT BASE
PERCENTAGE OF TOP EMPLOYER COMPARED TO ALL EMPLOYERSLast Ten Fiscal Years
Top employer
All employers
0%
20%
40%
60%
80%
100%
2003 2012
FIGURE 18b: AUBURN EMPLOYMENT BASE PERCENTAGE OF TOP 10 EMPLOYERS COMPARED TO ALL EMPLOYERS
Last Ten Fiscal Years
Top 10 employers
All employers
163
City of Auburn: 2012 CAFR Statistical Section
Department 2003200420052006200720082009201020112012
Mayor 4 4 8 10 11 12 12 10 10 7
Human Resources 7 7 7 15 17 18 9 7 7 8
Finance 28 28 21 23 24 25 25 21 22 22
Municipal Court (4)12 13 14 15 17 21 21 17 19 -
Legal 13 13 13 13 14 16 16 13 13 13
Planning 31 31 32 25 29 34 34 24 24 28
Police 115 115 117 118 121 152 152 131 118 122
Fire (1)81 81 82 82 - - - - - -
Public works 48 49 48 48 54 63 63 43 43 43
Parks, Arts, & Recreation37 37 36 36 38 40 40 35 36 36
Street 13 13 11 11 15 14 14 12 19 19
Water 16 16 16 16 19 20 20 22 22 22
Sewer 7 6 8 8 11 11 11 11 12 12
Storm Drainage 7 7 9 9 12 16 17 16 10 10
Solid Waste 2 2 2 2 2 2 2 2 2 2
Airport 3 3 - - - - - - - -
Cemetery 7 7 6 6 7 7 7 7 7 7
Golf course 6 6 6 6 9 9 9 8 8 8
Facilities (2)- - - - - - 10 10 10 9
Innovation & Technology- - 10 11 15 18 18 14 14 18
Equipment Rental 10 10 10 9 9 10 11 6 6 7
TOTAL 447 448 456 463 424 488 490 408 401 392
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.
(4) In 2012, the City contracted out the Municipal Court to the King County District Court - resulting in
a reduction of 19 positions.
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 SERVICE
Last Ten Fiscal Years
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
164
City of Auburn: 2012 CAFR Statistical Section
2003200420052006200720082009201020112012
Planning
Commercial permits 33721724024821495112183824
Commercial construction value ($1,000's)50,269$ 77,121$ 71,047$ 63,658$ 63,658$ 22,887$ 58,896$ 8,386$ 10,904$ 13,219$
Residential permits 58376660448529316585184229461
Residential construction value ($1,000's)89,415$ 155,551$ 112,125$ 61,872$ 61,872$ 27,048$ 15,739$ 36,602$ 43,574$ 98,212$
Police
Crimes:
Arson 45 43 33 36 30 24 19 23 29 27
Aggravated Assault 145 135 168 158 143 154 163 137 148 110
Burglary 596 861 623 686 590 630 590 725 757 983
DUI 189 240 218 158 145 194 193 192 214 171
Homicide 2 1 1 - 1 - 3 3 2 6
Narcotics 506 399 472 493 368 439 440 442 396 383
Rape 32 24 13 24 12 14 13 15 23 23
Robbery 69 91 85 122 92 102 92 79 107 110
Theft 2,082 2,344 2,509 2,216 1,962 2,343 2,362 2,533 2,435 2,415
Theft - motor vehicle 816 802 869 642 672 639 370 569 600 588
Traffic:
Non-criminal 9,946 7,962 6,850 4,978 6,865 6,794 7,788 7,182 5,400 4,922
Parking 1,821 1,827 2,140 3,965 4,802 3,740 4,026 4,648 3,383 1,946
Fire (2)
Type of response:
Building 114 107 94 98 - - - - - -
Non-building 305 249 198 238 - - - - - -
Alarm systems 486 497 474 524 - - - - - -
Service 465 493 493 618 - - - - - -
Other 917 940 870 979 - - - - - -
First Aid 5,155 5,562 5,679 5,616 - - - - - -
Parks and Recreation
Athletic teams 523 507 445 459 479 416 428 439 429 388
Recreation activities 1,708 1,896 2,086 2,069 2,719 2,056 2,335 2,281 3,462 3,833
Golf course rounds (1)41,753 45,336 47,501 43,454 50,500 54,993 50,572 49,950 45,484 45,704
Senior center visits 31,418 32,103 35,308 35,381 34,427 36,805 41,032 41,350 41,802 40,704
Cultural activities 55 56 56 58 84 84 90 101 127 146
Museum audience served 9,417 10,274 9,340 9,400 12,090 11,921 11,835 12,570 14,119 15,397
Cemetery burials 272 271 277 277 245 289 232 228 273 259
Sources: Various city departments
(1) 2003 - Portion of golf course closed for two months
(2) 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
165
City of Auburn: 2012 CAFR Statistical Section
2003200420052006200720082009201020112012
General City
Total area (square miles)22.8 22.8 23.3 23.4 23.4 30.0 30.1 30.1 30.2 30.2
Public Works
Miles of streets 180180180180 186 272 276 283 285 249
Number of streetlights 2,9343,3553,4103,575 3,602 5,074 5,392 5,523 5,581 6,101
Number of traffic signals n/a667272 72 83 85 86 89 93
Utilities
Number of services 12,07712,14412,83312,633 12,954 13,050 13,076 13,372 13,334 13,863
Miles of water mains 252254278279 287 283 293 297 304 314
Miles of sanitary sewers 176177177177 182 205 207 213 213 219
Miles of storm sewers n/a185190195 197 197 204 226 247 252
Number of fire hydrants n/a2,2702,2852,300 2,369 2,969 2,998 3,044 3,277 3,308
Public Safety
Number of fire stations (1)3333 - - - - - -
Number of police stations2222 2 2 2 2 2 2
Parks and Recreation
Total park acreage 535 592 596 596596598602602602630
Number of softball/baseball fields n/a1919 19191918181817
Number of soccer/football fields n/a33 3333333
Number of playgrounds n/a2529 30303233353535
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
166
City of Auburn: 2012 CAFR Statistical Section
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
Teri Ashton
Accountant
Consuelo Rogel
Financial Analyst
Aimee Campbell
Financial Analyst
Tamara Baker
Financial Analyst
Evelyn McOsker
Finance Secretary
167
City of Auburn: 2012 CAFR Statistical Section
168