HomeMy WebLinkAboutelectronic version - CAFR Updated 6.29.15.pdfCOMPREHENSIVE ANNUAL
FINANCIAL REPORT
FOR THE YEAR ENDED DECEMBER 31, 2014
2014
CITY OF AUBURN
WASHINGTON
COMPREHENSIVE ANNUAL
FINANCIAL REPORT
Fiscal Year January 1, 2014 through December 31, 2014
Prepared by
Finance Department
Shelley Coleman, Finance Director
City of Auburn: 2013 CAFR Table of Contents
i
COMPREHENSIVE ANNUAL FINANCIAL REPORT
For the Year Ended December 31, 2014
TABLE OF CONTENTS
I. INTRODUCTORY SECTION Page
Title Page
Table of Contents ....................................................................................................................................................... i
City Officials ................................................................................................................................................................ 1
Organizational Chart ................................................................................................................................................. 2
Letter of Transmittal ................................................................................................................................................. 3
Certificate of Achievement ....................................................................................................................................... 9
II. FINANCIAL SECTION
Auditor’s Report ....................................................................................................................................................... 11
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 ............................................................................................................................................. 40
Reconciliation of Balance Sheet of Government Funds to the Statement of Net Position .................... 41
Statement of Revenues, Expenses and Changes in Fund Balances ........................................................ 42
Reconciliation of the Statement of Revenues, Expenditures, and Changes in
Fund Balances of Government Funds to the Statement of Activities .................................................. 43
Statement of Revenues, Expenses and Changes in Fund Balances – Budget and Actual:
General Fund ........................................................................................................................................... 44
Arterial Street Fund ................................................................................................................................ 45
Proprietary Funds:
Statement of Net Position ......................................................................................................................... 48
Statement of Revenues, Expenses, and Changes in Fund Net Position .................................................. 49
Statement of Cash Flows ........................................................................................................................... 50
Fiduciary Funds:
Statement of Fiduciary Net Position ......................................................................................................... 54
Statement of Changes in Fiduciary Net Position ...................................................................................... 55
Notes to the Financial Statements.......................................................................................................................... 57
Required Supplemental Information ..................................................................................................................... 101
Combining and Individual Fund Financial Statements and Schedules
Non‐Major Government Funds:
Combining Balance Sheet .......................................................................................................................... 104
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances .............................. 105
Non‐Major Special Revenue Funds:
Combining Balance Sheet ......................................................................................................................... 108
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances .............................. 110
Statement of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual:
Local Street Special Revenue Fund ....................................................................................................... 112
Hotel/Motel Tax Special Revenue Fund ................................................................................................ 113
Arterial Street Preservation Special Revenue Fund .............................................................................. 114
City of Auburn: 2013 CAFR Table of Contents
ii
Statement of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual: Page
(continued)
Drug Forfeiture Special Revenue Fund ................................................................................................. 115
Housing & Community Development Special Revenue Fund .............................................................. 116
Recreation Trails Special Revenue Fund ............................................................................................... 117
Business Improvement Area Special Revenue Fund ............................................................................ 118
Cumulative Reserve Special Revenue Fund .......................................................................................... 119
Mitigation Special Revenue Fund .......................................................................................................... 120
Non‐Major Debt Service Funds:
Combining Balance Sheet .......................................................................................................................... 122
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances .............................. 123
Capital Project Funds:
Combining Balance Sheet .......................................................................................................................... 126
Combining Statement of Revenues, Expenditures, and Changes in Fund Balance ................................ 127
Permanent Fund:
Balance Sheet ............................................................................................................................................. 130
Statement of Revenues, Expenditures and Changes in Fund Balance .................................................... 131
Non‐Major Enterprise Funds:
Combining Statement of Net Position ...................................................................................................... 134
Combining Statement of Revenues, Expenses, and Changes in Net Position ........................................ 135
Combining Statement of Cash Flows ........................................................................................................ 136
Internal Service Funds:
Combining Statement of Net Position ...................................................................................................... 140
Combining Statement of Revenues, Expenses, and Changes in Net Position ........................................ 141
Combining Statement of Cash Flows ........................................................................................................ 142
Agency Fund:
Statement of Changes in Assets and Liabilities ........................................................................................ 146
III. STATISTICAL SECTION
Schedule
Net Position by Components .................................................................................................................. 1 .............. 148
Changes in Net Positions ........................................................................................................................ 2 .............. 149
Fund Balances, Government Funds ........................................................................................................ 3 .............. 150
Changes in Fund Balances, Government Funds ..................................................................................... 4 .............. 151
Tax Revenues by Source, Government Funds ....................................................................................... 5 .............. 152
Assessed Value by Type ......................................................................................................................... 6 .............. 153
Property Tax Data ................................................................................................................................... 7 .............. 154
Property Tax Levies and Collections ..................................................................................................... 8 .............. 156
Principal Taxpayers – Property Taxes ................................................................................................... 9 .............. 157
Retail Tax Collections by Sector ........................................................................................................... 10 .............. 158
Ratios of Outstanding Debt by Type ..................................................................................................... 11 .............. 159
Computation of Legal Debt Margin ...................................................................................................... 12 .............. 160
Legal Debt Margin Ratios ..................................................................................................................... 13 .............. 160
Computation of Net Direct and Estimated Overlapping Debt ............................................................ 14 .............. 161
Ratios of Net General Bonded Debt to Assessed Value ...................................................................... 15 .............. 162
Pledged Revenue Bond Coverages ...................................................................................................... 16 .............. 163
Population, Income and Housing Trends ............................................................................................. 17 .............. 164
Major Employers ................................................................................................................................... 18 .............. 165
Staffing Levels by Department ............................................................................................................. 19 .............. 166
Operating Indicators by Department ................................................................................................... 20 .............. 167
Capital Asset Indicators by Department .............................................................................................. 21 .............. 168
Utility Customers by Customer Class ................................................................................................... 22 .............. 168
CITY OFFICIALS
MAYOR
Nancy Backus
CITY COUNCIL
Claude DaCorsi John Holman Wayne Osborne
Bill Peloza Yolanda Trout Rich Wagner Largo Wales
DEPARTMENT DIRECTORS
Finance Director Shelley Coleman
City Attorney Dan Heid
Human Resources / Risk & Property Mgmt. Director Rob Roscoe
Innovation & Technology Director Vacant
Parks, Arts and Recreation Director Daryl Faber
Community Development & Public Works Director Kevin Snyder
Police Chief Bob Lee
Administration Director Michael Hursh
1
CitizensCitizensCitizensCitizens
City Council City Council City Council City Council MayorMayorMayorMayor
Nancy BackusNancy BackusNancy BackusNancy Backus
Director of Human Director of Human Director of Human Director of Human
Resources Resources Resources Resources & & & & RiskRiskRiskRisk////Property Property Property Property
ManagementManagementManagementManagement
Rob RoscoeRob RoscoeRob RoscoeRob Roscoe
City AttorneyCity AttorneyCity AttorneyCity Attorney
Dan HeidDan HeidDan HeidDan Heid
Police ChiefPolice ChiefPolice ChiefPolice Chief
Bob LeeBob LeeBob LeeBob Lee
Director of InnovationDirector of InnovationDirector of InnovationDirector of Innovation
and Technologyand Technologyand Technologyand Technology
VacantVacantVacantVacant
Director of AdministrationDirector of AdministrationDirector of AdministrationDirector of Administration
Michael HurshMichael HurshMichael HurshMichael Hursh
Community Development Community Development Community Development Community Development
& & & & Public WorksPublic WorksPublic WorksPublic Works
Kevin SnyderKevin SnyderKevin SnyderKevin Snyder
ParksParksParksParks////Art and RecreationArt and RecreationArt and RecreationArt and Recreation
DirectorDirectorDirectorDirector
Daryl FaberDaryl FaberDaryl FaberDaryl Faber
Finance DirectorFinance DirectorFinance DirectorFinance Director
Shelley ColemanShelley ColemanShelley ColemanShelley Coleman
2
3
June 26, 2015
Honorable Nancy Backus, 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, 2014. 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, 2014. This transmittal letter provides an overview of the
report and the financial condition of the City. It also provides insight into the history of the City and the
economic conditions affecting it, and describes the systems and controls employed by the Finance
department.
The Comprehensive Annual Financial Report has several significant uses. First, it provides a general
overview of the City’s finances to the general public and taxpayers. Second, it is referenced by bond buyers
and rating agencies to evaluate the City’s fiscal stability and creditworthiness. Finally, the CAFR is a series of
financial statements that have been audited by the State Auditor’s Office and provides assurances that
assets are safeguarded and funds are expended as they were legally appropriated in the biennial budget.
I. INTRODUCTION
A. Management Representation
The Auburn Finance Department prepared the report and accepts complete responsibility for the accuracy,
completeness, and fairness of presentation of the information included. The data is believed to be accurate
in all material respects, and it is believed that all significant information necessary for an understanding of
the affairs and financial condition of the City has been disclosed. The report has been prepared in
conformance with generally accepted accounting principles and in conformance with financial reporting
standards issued by the Governmental Accounting Standards Board (GASB).
City management has developed and evaluated a comprehensive internal control structure that is designed
to protect the City’s assets from loss, theft, or misuse and to compile sufficient reliable information for the
preparation of the City’s financial statements in conformity with generally accepted accounting principles.
Because the cost of internal controls should not outweigh the benefits, the City’s internal control structure
is designed to provide reasonable, rather than absolute, assurance that the financial statements will be free
from material misstatement. As management, we attest that, to the best of our knowledge and belief, this
financial report is complete and reliable in all material aspects.
City of Auburn: 2014 CAFR Letter of Transmittal
4
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, 2014 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 2013
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 74,630 people within its incorporated limits.
The City provides a wide range of services, both beneficial and necessary, to its residents as well as to the
adjacent area. These services include police protection; parks and recreational facilities that include a
senior center, gymnasium, golf course and museum; land use management and development regulation;
infrastructure construction and maintenance; water, sanitary sewage collection, storm drainage, and solid
waste services; a general aviation airport; and a municipal cemetery. The City is a member/owner of Valley
City of Auburn: 2014 CAFR Letter of Transmittal
5
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 6,100 people in its Auburn facility. Boeing is a worldwide
supplier of aircraft and related products. The City’s assessed valuation in 2014, for 2015 property tax
collection, was $8.238 billion.
Auburn has enjoyed steady residential and industrial growth over the years as development has moved
outward from the major cities. The City currently has a growing array of manufacturing facilities, as well as
distribution, wholesaling, and retailing operations. Auburn is home to the MultiCare Auburn Medical
Center, which serves the local geographic area and is a major trauma center of the northwest, providing 213
beds and supporting about 1,100 employees. Auburn also serves as a major hub for local and regional
warehousing and distribution facilities.
Auburn also continues to experience increases in new businesses and development activity. New
businesses continue to call Auburn home and the City’s recent efforts to promote economic development
and designation as an Innovation Partnership Zone will help to solidify our economic standing. A number of
commercial and service industry projects currently in progress, or in the planning stages, contribute to an
economic picture of ongoing development. These include the North Creek Business Park, which will
become home to over 200,000 square feet of business space; the Green River College Aviation Campus, a
downtown facility that will house the college’s aviation classes; Merrill Gardens, the second mixed use
urban project in the City’s downtown; new commercial development at the Outlet Collection; as well as
new residential developments.
Other recent significant developments in the City include the issuance of 374 building permits for single
family homes and permits for about $35.8 million in commercial construction, such as projects at the
Auburn High School, two buildings at Green River College, seven new warehouses, and the Auburn
Marketplace. The addition of these new businesses is anticipated to have positive impacts on available
revenue and, as they take hold, will serve to broaden and strengthen the City’s economic foundation far
into the future.
Since 2005 the City’s total assessed property valuation has risen from $5.1 billion in 2005 to $7.42 billion in
2014. 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 general sales
tax revenues from their high in 2007 of $17.5 million to $15.66 million in 2014. The SST impact is estimated to
have eliminated approximately $200,000 a month of sales tax revenue to the City. To lessen the financial
impact on cities severely impacted by this legislation, the State of Washington implemented a mitigation
plan under which the City of Auburn received approximately $1.96 million in mitigation payments in 2014.
City of Auburn: 2014 CAFR Letter of Transmittal
6
While the City, similar to other municipalities in the region and nationally, has suffered during the recent
economic recession, the local economy is improving. Sales Tax revenue, net of criminal justice and
annexation sales tax credits, constitutes approximately twenty five percent of the General Fund budget,
increased to $15.66 million (+7.9%) over the previous year. While the local economy is recovering, the City
remains vigilant in its management of expenses and to ensure it lives within its means. The City’s staffing
level totals 411 full‐time equivalents (FTEs).
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, the City’s Arterial
Street program is partially funded by dedicating 1.0% of utility taxes toward arterial roadway improvements.
In addition, the City utilizes sales taxes collected from new construction for the local street program,
commonly referred to as the Save Our Streets (SOS) program.
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 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 which included the issuance
of new revenue bonds in 2013 and 2015 to support significant new utility construction projects. An interim
review of utility rates, in conjunction with the comprehensive planning process, is underway.
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. 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, pension costs,
other post‐employment benefits (OPEB), 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
City of Auburn: 2014 CAFR Letter of Transmittal
7
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 Officers Association (GFOA). Investments are restricted to less than three years in
order to maintain liquidity on all investments in all funds, yet enable the City to take advantage of the yield
curve. Fiduciary funds, which involve long‐term reserves and require minimal liquidity, are invested for
longer time periods. The City undertakes repurchase agreements only with financial institutions that offer
the City full protection in the event of default, by providing the delivery of the underlying security to the
City.
B. Risk Management
The City participates in the Washington Cities’ Insurance Authority (an insurance pool of 175 members) 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. Beginning in 2014 the City created its
own worker’s compensation program and pool. Prior, the City participated 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 coverage’s 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.
City of Auburn: 2014 CAFR Letter of Transmittal
8
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 2014 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 2014. 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 Officers 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, 2013. This was the twenty‐seventh
consecutive year that the City has achieved this prestigious award. In order to be awarded a Certificate of
Achievement, a government must publish an easily readable and efficiently organized comprehensive
annual financial report. This report must satisfy both generally accepted accounting principles and
applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. We believe that our current
Comprehensive Annual Financial Report continues to meet the Certificate of Achievement Program’s
requirements and we are submitting it to the GFOA to determine its eligibility for another certificate.
In 2013, the City has also received the Government Finance Officers Association Distinguished Budget
Presentation award for its 2013‐2014 biennial budget. The City was one of just twenty‐one cities in the state
to receive both the Certificate of Achievement for Excellence in Financial Reporting and the Distinguished
Budget Presentation award for 2013. The City has submitted to GFOA its 2015‐2016 biennial budget to
determine its eligibility for this award.
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
9
10
INDEPENDENT AUDITOR’S REPORT ON FINANCIAL STATEMENTS
June 26, 2015
Mayor and City Council
City of Auburn
Auburn, Washington
REPORT ON THE FINANCIAL STATEMENTS
We have audited the accompanying financial statements of the governmental activities, the business-type
activities, each major fund and the aggregate remaining fund information of the City of Auburn, King
County, Washington, as of and for the year ended December 31, 2014, and the related notes to the
financial statements, which collectively comprise the City’s basic financial statements as listed in the
table of contents.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with accounting principles generally accepted in the United States of America; this includes
the design, implementation, and maintenance of internal control relevant to the preparation and fair
presentation of financial statements that are free from material misstatement, whether due to fraud or
error.
Auditor’s Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We conducted
our audit in accordance with auditing standards generally accepted in the United States of America and
the standards applicable to financial audits contained in Government Auditing Standards, issued by the
Comptroller General of the United States. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in
the financial statements. The procedures selected depend on the auditor’s judgment, including the
assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
In making those risk assessments, the auditor considers internal control relevant to the City’s preparation
and fair presentation of the financial statements in order to design audit procedures that are appropriate in
the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s
internal control. Accordingly, we express no such opinion. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of significant accounting estimates
made by management, as well as evaluating the overall presentation of the financial statements.
Washington State Auditor’s Office
11
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our audit opinions.
Opinion
In our opinion, the financial statements referred to above present fairly, in all material respects, the
respective financial position of the governmental activities, the business-type activities, each major fund
and the aggregate remaining fund information of the City of Auburn, King County, Washington, as of
December 31, 2014, and the respective changes in financial position and, where applicable, cash flows
thereof, and the respective budgetary comparison for the General and Arterial Street funds for the year
then ended in accordance with accounting principles generally accepted in the United States of America.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s
discussion and analysis on pages 15 through 32, information on postemployment benefits other than
pensions on page 102 and pension trust fund information on page 101 be presented to supplement the
basic financial statements. Such information, although not a part of the basic financial statements, is
required by the Governmental Accounting Standards Board who considers it to be an essential part of
financial reporting for placing the basic financial statements in an appropriate operational, economic or
historical context. We have applied certain limited procedures to the required supplementary information
in accordance with auditing standards generally accepted in the United States of America, which
consisted of inquiries of management about the methods of preparing the information and comparing the
information for consistency with management’s responses to our inquiries, the basic financial statements,
and other knowledge we obtained during our audit of the basic financial statements. We do not express
an opinion or provide any assurance on the information because the limited procedures do not provide us
with sufficient evidence to express an opinion or provide any assurance.
Supplementary and Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the City’s basic financial statements. The accompanying information listed as combining
financial statements and supplementary information on pages 104 through 146 is presented for purposes
of additional analysis and is not a required part of the basic financial statements. Such information is the
responsibility of management and was derived from and relates directly to the underlying accounting and
other records used to prepare the financial statements. This information has been subjected to auditing
procedures applied in the audit of the basic financial statements and certain additional procedures,
including comparing and reconciling such information directly to the underlying accounting and other
records used to prepare the financial statements or to the financial statements themselves, and other
additional procedures in accordance with auditing standards generally accepted in the United States of
America. In our opinion, the information is fairly stated, in all material respects, in relation to the basic
financial statements taken as a whole.
The information identified in the table of contents as the Introductory and Statistical Section is presented
for purposes of additional analysis and is not a required part of the basic financial statements of the City.
Such information has not been subjected to the auditing procedures applied in the audit of the basic
financial statements and, accordingly, we do not express an opinion or provide any assurance on it.
12
OTHER REPORTING REQUIRED BY GOVERNMENT AUDITING STANDARDS
In accordance with Government Auditing Standards, we will also issue our report dated June 26, 2015, on
our consideration of the City’s internal control over financial reporting and on our tests of its compliance
with certain provisions of laws, regulations, contracts and grant agreements and other matters. That
report will be issued under separate cover in the City’s Single Audit Report. The purpose of that report is
to describe the scope of our testing of internal control over financial reporting and compliance and the
results of that testing, and not to provide an opinion on internal control over financial reporting or on
compliance. That report is an integral part of an audit performed in accordance with Government
Auditing Standards in considering the City’s internal control over financial reporting and compliance.
Sincerely,
JAN M. JUTTE, CPA, CGFM
ACTING STATE AUDITOR
OLYMPIA, WA
13
14
City of Auburn: 2014 CAFR Management’s Discussion and Analysis
15
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 difference between assets plus deferred outflows and liabilities, equal
$637.3 million, an increase of $13.3 million or 2.1%. Of this, a total of $517.2 million, or 81.1% 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 $5.9 million of net position is restricted for purposes of endowment and debt service.
Of the remaining $114.2 million of net position, $24.6 million is legally restricted, restricted by City policy for specific
purposes, or is restricted for use by the City’s utilities and $89.6 million is unrestricted.
• The net increase in government-wide net position during 2014 was $13.3 million. Of this amount, $5.36 million was
directly related to the increase in City-owned net investment in capital assets, and unrestricted net position
increased by $9.3 million.
• Business-type net position increased by $5.6 million to $220.9 million during 2014 as a result of net capital
investment related to the City’s water, sewer and storm water utilities.
• Governmental fund balances at year-end totaled $51.2 million. Of this amount, $20.9 million, or 41%, is unassigned
and available to fund ongoing activities. Compared to 2013, total governmental fund balances increased by $4.3
million. This increase reflects the net effect of a general 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 $7.9 million. Total outstanding debt, including bonds and loans, totaled $111.1 million at December 31, 2014.
This ending debt balance is a decrease of $3.2 million from 2013 and is primarily the result of the retirement of
bond principal. See note 9 for further information on debt activity during the year.
City of Auburn: 2014 CAFR Management’s Discussion and Analysis
16
Other City Highlights:
Parks and Community Development
• Over 400 volunteers were involved in salmon restoration and habitat projects at Fenster Park and the Reddington
Levee. These projects involved planting over 6,500 trees to create salmon and wildlife habitat, adding to the
aesthetics of the Green River trail and helping protect the City of Auburn from potential floods.
• The Auburn Senior Center experienced program growth of over 28% as more than 40,000 seniors participated in
activities that range from whitewater rafting to dominos.
• Clean Sweep-2014 featured over 500 volunteers improving our community. Projects included the construction of a
new playground at Indian Tom Park, as well as beautification projects downtown at Brannan Park and the Historic
Mary Olson Farm.
• The Auburn Farmers Market celebrated its 6th season with 65 different vendors and total attendance of over
23,000. The “market” was recognized as one of the top three Farmers Markets in Washington State.
• Completed the legislative process for adopting regulations that govern marijuana growing, processing, and retail
uses.
• Initiated and completed the Auburn visioning process "Imagine Auburn" which obtained feedback from
approximately 1,000 residents to be used in the development of an updated City Comprehensive Plan.
• Facilitated the processing of 374 permits for single family homes and approximately $35.8 million in commercial
construction. Notable projects include Auburn High School, Trek mixed use development, Green River College
Trades building, Green River College Student Life building, seven new warehouses, and Auburn Marketplace.
• Completed 9,123 building inspections for Auburn and provided building services to Algona and Enumclaw.
Public Works
• Completed pavement patching, chip seal treatments and overlay work to preserve arterial/collector and local
roadways throughout the City.
• Completed repair and replacement of existing sidewalks at various locations around Downtown and the Auburn
High School.
• Installed control structures on existing storm systems as needed to comply with NPDES permit requirements.
• Constructed safety improvements at a number of signals throughout the City.
• Completed the required monitoring and maintenance of the wetland mitigation sites for the S. 277th Grade
Separation Project.
• Updated and replaced the existing pump station in the Academy water service area in order to meet fire flow
demands.
• Provided safety improvements at the intersection of 8th Street SE and 104th Avenue SE, including signal
modifications and sight distance improvements.
• Completed the SCADA System security site improvements at various utility locations throughout the City.
• Provided field technical assistance throughout the year to property owners regarding a variety of environmental
issues, including tree maintenance/removal, slope stability, and best practices for protecting environmental critical
areas such as streams and wetlands.
• Worked in partnership with the U.S. Army Corps of Engineers to complete the design, permitting, and real estate
acquisition for the Mill Creek Wetland 5K Ecosystem Restoration Project.
City of Auburn: 2014 CAFR Management’s Discussion and Analysis
17
• Issued 13 floodplain development permits and exemptions, and provided general assistance to staff and the public
regarding floodplain-related issues, including NFIP requirements, floodplain mapping, and SWIF planning for the
Lower Green River.
• Conducted public environmental volunteer events, including Auburn's 1st Annual Earth Day project at West Hills
Lake, riparian restoration maintenance at the Reddington Levee, and wetland restoration maintenance in the
Auburn Environmental Park.
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
These statements report the Cities net position, and changes in them. The net position is the difference between assets
plus deferred outflows of resources and liabilities plus deferred inflows of resources. The City does not report deferred
inflows of resources because it had no items requiring recognition as deferred inflows of resources in 2014.
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.
Government-wide Financial Statements
The Financial Statements are presented in conformity with the Governmental Accounting Standards Board (GASB), which
establishes GAAP for governmental entities. The City adopted the provisions of Statement No. 67 – Financial Reporting for
Pension Plans, an amendment of GASB Statement No. 25, Statement No. 69 – Government Combinations and Disposals of
Government Operations; and Statement No. 70 – Accounting and Financial Reporting for Nonexchange Financial
Guarantees. There is no material impact to the City of implementing these standards.
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, deferred outflows of resources, long-term obligations and deferred inflows of resources, (which there are none to
report). 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
City of Auburn: 2014 CAFR Management’s Discussion and Analysis
18
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 an 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 directly following the governmental funds’ Balance Sheet, 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.
The City maintains twenty 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.
City of Auburn: 2014 CAFR Management’s Discussion and Analysis
19
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 and cemetery.
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, the cost of employees who are affected by
occupational injury or illness, 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 44 and 45, and the 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 2013 to 2014 show an increase in
total net position of $13.3 million. Following is a condensed version of the government-wide statement of net position with
a comparison to 2013:
City of Auburn: 2014 CAFR Management’s Discussion and Analysis
20
The City’s net position increased by $13.3 million, or 2.1%. The largest component of the City’s net position, $517.2 million, or
81.1%, 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, $51.9 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, $37.7 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 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 cemetery.
Restricted governmental fund net position is $16.4 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 $5.36 million.
Changes in Net Position
The change in net position represents the increase or decrease in City net position resulting from its various activities.
Following is a condensed version of the City’s changes in net position. The table shows the revenues, expenses and related
changes in net position for both governmental-type and business-type activities:
As of 12/31/14As of 12/31/13As of 12/31/14As of 12/31/13As of 12/31/14As of 12/31/13
Current and other assets 107,838,776$ 101,729,060$ 59,065,425$ 56,821,892$ 166,904,201$ 158,550,952$
Capital assets, net of
accumulated depreciation 383,675,820 379,730,745 210,726,930 212,902,959 594,402,750 592,633,704
Total assets 491,514,596 481,459,805 269,792,355 269,724,851 761,306,951 751,184,656
Deferred Outflows of Resources 22,344 27,929 41,546 49,856 63,890 77,785
Long-term liabilities 64,972,946 64,297,074 39,409,343 45,806,167 104,382,289 110,103,241
Other liabilities 10,180,595 8,548,606 9,485,952 8,628,868 19,666,547 17,177,474
Total liabilities 75,153,541 72,845,680 48,895,295 54,435,035 124,048,836 127,280,715
Net position
Net investment in capital assets 348,080,505 346,195,793 169,098,916 165,619,867 517,179,421 511,815,660
Restricted for:
Capital Projects 14,012,967 12,517,220 9,395,125 10,453,443 23,408,092 22,970,663
Nonexpendable Permanent Endowment 1,574,148 1,536,316 - - 1,574,148 1,536,316
Debt Service 34,856 45,788 4,307,307 5,973,355 4,342,163 6,019,143
Tourist Promotion 166,896 131,851 - - 166,896 131,851
Drug Investigation & Enforce 539,236 710,147 - - 539,236 710,147
Comm Dev Block Grant 44,904 37,519 - - 44,904 37,519
Central Business Distr Dev 31,321 41,068 - - 31,321 41,068
Rate Stabilization - - 413,178 412,791 413,178 412,791
Unrestricted 51,898,566 47,426,352 37,724,080 32,880,216 89,622,646 80,306,568 Total net position 416,383,399$ 408,642,054 220,938,606$ 215,339,672$ 637,322,005$ 623,981,726$
Governmental Activities Business-type Activities Total
STATEMENT OF NET POSITION
Comparative Analysis of 2014 and 2013
City of Auburn: 2014 CAFR Management’s Discussion and Analysis
21
2014 2013 2014 2013 2014 2013
Revenues:
Program revenues
Charges for services 11,335,041$ 9,824,305$ 60,332,817$ 57,533,735$ 71,667,858$ 67,358,040$
Operating grants and contributions 1,333,652 1,967,252 111,025 90,361 1,444,677 2,057,613
Capital grants and contributions 6,001,230 5,955,062 5,070,810 5,483,344 11,072,040 11,438,407
General revenues
Property taxes 15,867,838 14,490,790 - - 15,867,838 14,490,790
Sales taxes 19,744,684 18,335,157 - - 19,744,684 18,335,157
Interfund utility taxes 4,068,667 3,892,250 - - 4,068,667 3,892,250
Admission & utility taxes 9,040,015 9,156,636 - - 9,040,015 9,156,636
Excise taxes 2,888,797 2,555,850 - - 2,888,797 2,555,850
Other taxes 4,601,925 4,429,090 - - 4,601,925 4,429,090
Investment earnings 105,117 121,687 51,261 68,400 156,378 190,087
Miscellaneous revenue 178,482 (4,625,627) 2,700,233 763,717 2,878,715 (3,861,911)
Total revenues 75,165,448 66,102,452 68,266,146 63,939,557 143,431,594 130,042,009
Expenses:
General government 8,363,427 7,508,112 - - 8,363,427 7,508,112
Public safety 27,144,153 27,423,015 - - 27,144,153 27,423,015
Transportation 16,150,877 14,861,834 - - 16,150,877 14,861,834
Physical environment 2,976,461 2,699,301 - - 2,976,461 2,699,301
Culture and recreation 11,094,524 9,184,289 - - 11,094,524 9,184,289
Economic environment 2,751,869 2,346,025 - - 2,751,869 2,346,025
Health and human services 622,374 510,285 - - 622,374 510,285
Interest on long-term debt 3,615,211 3,795,024 - - 3,615,211 3,795,024
Water - - 11,992,944 11,893,094 11,992,944 11,893,094
Sanitary sewer - - 23,026,216 21,584,215 23,026,216 21,584,215
Storm drainage - - 7,668,072 7,726,467 7,668,072 7,726,467
Solid waste - - 12,760,313 12,535,078 12,760,313 12,535,078
Golf course - - - 1,933,597 - 1,933,597
Other business-type activities - - 1,924,874 1,857,252 1,924,874 1,857,252
Total expenses 72,718,896 68,327,885 57,372,419 57,529,703 130,091,315 125,857,588
Increase in net position before transfers 2,446,552 (2,225,433) 10,893,727 6,409,854 13,340,279 4,184,421
Transfers 5,294,793 (218,230) (5,294,793) 218,230 - -
Change in net position 7,741,345 (2,443,663) 5,598,934 6,628,084 13,340,279 4,184,421
Net Position, January 1, as Previously Reported 408,642,054 411,308,460 215,339,672 208,868,303 623,981,726 620,176,763
Change in Accounting Principle - (222,743) - (156,715) - (379,458)
Net Position, January 1, as Restated 408,642,054 411,085,717 215,339,672 208,711,588 623,981,726 619,979,305
Net position, December 31 416,383,399$ 408,642,054$ 220,938,606$ 215,339,672$ 637,322,005$ 623,981,726$
Governmental Activities Business-type Activities Total
CHANGES IN NET POSITIONComparative Analysis of 2014 and 2013
Governmental activities contributed $7.7 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.
General tax revenues increased by 6.3% to $56.2 million between 2013 and 2014, compared to an increase of 4.4% between
2012 and 2013:
• Property tax revenue increased $1.4 million or 9.5%.
• Sales tax collections increased $1.4 million or 7.7%, reflecting continued improvement in the economy.
• Utility and admission tax revenue decreased by $117,000 or 1.3%.
• Excise tax revenue increased by $333,000 or 13.0%. This change is due primarily to increased real estate excise
taxes (REET) resulting from an increase in the number and size of real estate transactions.
City of Auburn: 2014 CAFR Management’s Discussion and Analysis
22
Investment earnings fell by $16,570 in governmental activities and $17,139 in business-type activities for a government-wide
decline of $33,709 or 17.7%. These declines reflect the continued low interest rates. Government-wide miscellaneous
revenue increased by $6.7 million to $2.9 million.
Government-wide expenses increased by approximately $4.2 million or 3.4% and were largely attributable to the net change
due to internal service fund consolidations, increased wastewater treatment charges from King County, and general
increases in operating expenses such as salaries and wages.
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 Services
15.1%
Capital Grants & Contributions8.0%Operating Grants & Contributions1.8%
Property Taxes21.1%
Sales Taxes26.2%
Interfund Utility Taxes5.4%
Utility & Admission Taxes12.0%
Other Taxes10.0%
Other Revenue0.4%
City of Auburn: 2014 CAFR Management’s Discussion and Analysis
23
Program Expenses and Revenues – Governmental Activities
$0
$5
$10
$15
$20
$25
$30
Mil
l
i
o
n
s
Program Revenues
Expenses
Business-type net position totaled $220.9 million, an increase of 2.6%. Key components of this increase include:
• Business-type revenues increased $4.3 million to $68.3 million due to increases in charges for services and
miscellaneous revenues, which were offset by decreases in capital grants and investment earnings.
• Income (loss) before capital contributions and transfers amounted to:
Water fund: $ 1,491,513
Sanitary sewer fund: 504,745
Storm fund: 2,817,642
Solid waste fund: 962,202
Golf course: (4,957,001)
Non-major funds: 325,060
$ 1,144,161
• Net transfers totaled ($337,792).
City of Auburn: 2014 CAFR Management’s Discussion and Analysis
24
The following chart shows the relative net position balances for each business-type fund:
Business Type Net Position – By Fund
The majority of net position in the City’s enterprise funds relate to capital asset infrastructure, such as
water and sewer mains and the airport runway. As such, most of the net position is not available to
support the ongoing expenses of the funds. During 2014, the Golf Fund was reclassified from a
proprietary fund and reported in the General Fund. The capital assets and outstanding debt are now
included in the governmental activities. 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
City of Auburn: 2014 CAFR Management’s Discussion and Analysis
25
Comparison of Total Net Position to Spendable Net Position
Other Enterprise Funds
City of Auburn: 2014 CAFR Management’s Discussion and Analysis
26
The following first chart depicts the revenues and expenses for business-type funds, while the second
shows the various sources of business-type revenue. During 2014, the Golf Fund was reclassified from
a proprietary fund and reported in the General Fund. The capital assets and outstanding debt are now
included in the governmental activities. The removal of capital assets and outstanding debt from the
golf fund was treated as a non-operating expense of $4,957,001. On the government-wide statement,
the non-operating expense was reclassified as transfers in and out between governmental and
business-type activities for the same amount.
Business Type Activity Revenues and Expenses
Before Capital Contributions and Transfers
$0
$2
$3
$5
$6
$8
$9
$11
$12
$14
$15
$17
$18
$20
$21
$23
Water SanitarySewer StormDrainage SolidWaste GolfCourse MinorBusiness-TypeActivities
Mi
l
l
i
o
n
s
Revenues
Expenses
City of Auburn: 2014 CAFR Management’s Discussion and Analysis
27
Business Type Activity Revenues
By Source
Charges for Services
87.5%
Capital Contributions7.4%
Investment Earnings
0.1%
Business-type Miscellaneous Income5.0%
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, 2014, the City’s governmental funds had combined fund balances of $51.2 million, an increase of $4.3
million or 9.1% over the previous year. This increase is primarily due to increases in fund balances for the General fund,
Capital Improvement fund, and other governmental funds. The following table shows the changes in fund balance
between 2013 and 2014.
Changes in Fund Balance - By Fund
Fund 20142013Difference
General fund 24,959,818$ 23,644,516$ 1,315,302$ Arterial street fund 2,781,1002,435,922345,178
Capital improvement fund 9,680,8989,102,927577,971Mitigation fund 4,900,5124,640,767259,745Cemetery endowment fund 1,669,6481,629,56440,084All other government funds 7,163,4705,430,2241,733,246Total51,155,446$ 46,883,920$ 4,271,526$
Of the government funds’ total fund balances, $20.9 million is unassigned. Nonspendable, restricted, committed and
assigned fund balances total $30.2 million. Of this $30.2 million, $10.8 million is earmarked for capital projects, $13.7 million
is in special revenue funds that are earmarked for specific purposes and $1.7 million is for endowment.
City of Auburn: 2014 CAFR Management’s Discussion and Analysis
28
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 2014, the general fund
had a fund balance of $25.0 million, $4.0 million of which is assigned, and $20.9 million is unassigned.
Other funds that had significant fund balances include:
• $10.8 million in the capital improvement projects fund; used for various governmental capital asset projects.
• $4.9 million in the mitigation fund; used to collect fees from new development to mitigate the cost of new roads
and other infrastructure.
• $1.7 million in the cemetery endowed care fund; used for maintenance of the cemetery.
The following chart shows the relative fund balances for governmental funds:
Governmental Funds – Fund Balances
General Fund49%
Arterial Street Fund
5%
Capital Improvement Fund19%
Mitigation Fund10%
Cemetery Endowment
Fund3%
All Other Government Funds14%
The general fund balance of $25.0 million increased by $1.3 million from the prior year. Revenues increased with the
gradual improvement in the local and regional economic conditions, and expenses increased slightly over 2014 as the City
continues its vigilance in monitoring general expenditure activity.
General fund revenue increased by $5.3 million, sources of which are shown in the chart below. Property taxes increased
$1.4 million and sales taxes increased $1.6 million. Licenses and Permits decreased by $641,000 and Charges for Services
increased by $2.0 million, primarily due to the transfer of Golf operations to the General fund. Building permit and Plan
Check activity decreased slightly from 2013 levels while Intergovernmental revenues increased by $481,000. Fines and
City of Auburn: 2014 CAFR Management’s Discussion and Analysis
29
Forfeitures decreased by $183,000, reflecting a continued decline in revenue collections from fines related to the Redflex
red light traffic cameras, which were discontinued in June 2014.
2014 General Fund Revenue Increases – By Source
Property Taxes
$1,389,585
Sales Taxes
$1,634,240
InterfundUtility Taxes$151,215
Utility & Admission Taxes
($116,832)
Licenses & Permits($641,286)
Charges for Services$2,021,572
Fines & Forfeitures($183,195)
Intergovernmental
$481,520
Miscellaneous$581,147
($800,000)
($600,000)
($400,000)
($200,000)
$0
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
$1,400,000
$1,600,000
$1,800,000
$2,000,000
$2,200,000
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 2013 biennial
budget (for years 2013 & 2014) included:
City of Auburn: 2014 CAFR Management’s Discussion and Analysis
30
• Budgeted General Fund expenditures and transfers out increased from $54.5 million to $60.4 million. Significant
changes include the continuation of five new staff positions in the Police Department (approved in 2013),
continuation of labor agreements with the City’s labor groups (also approved in 2013), and a transfer of the Golf
Course operations to the Parks Department in the General Fund.
Reasons for the variances in the general fund between the final budget and actual results include:
• Actual General Fund revenues totaled $58.9 million and exceeded budget by $3.0 million. Significant areas of
variance include sales taxes, which exceeded budget by $1.8 million reflecting continued improvement in the local
economy; licenses and permits exceeded budget by $500,000 primarily the result of development service fees and
building permits; and charges for services exceeded budget by $689,000 reflecting higher-than-expected
development activity.
• Actual General Fund expenditures totaled $55.1 million and were under-budget by $4.9 million. Departments
experienced savings due to continued vigilance in monitoring city-wide expenditures. Significant areas of under-
expenditure include staff vacancies, reduced costs of medical benefits and employee pensions, and reduced court
and jail costs.
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, 2014
totaled $594.4 million (net of accumulated depreciation), an increase of $1.8 million from 2013. 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 $3.6 million in utility infrastructure assets and $1.8 million in
governmental infrastructure assets.
• $8.1 million was spent by proprietary funds on construction projects during the year.
• Purchases of government land resulted in an increase of $4.0 million.
• $8.5 million was spent by governmental funds on construction projects during the year. Some of the larger
projects in the governmental funds include:
$1.6 million on 2014 Local Street Improvement Program
$0.9 million on Fenster Levee setback
$0.6 million on AWS Dogwood St. SE to Fir St. SE
$0.6 million on AWS Fir St. SE to Hemlock St. SE
$0.5 million on City Hall remodel
City of Auburn: 2014 CAFR Management’s Discussion and Analysis
31
A summary of the City’s capital assets follows:
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 net bonded debt outstanding of $90.2 million. Of this amount, $25.1
million is due to other governments, $25.1 million is general obligation bonds, and $31.4 million is revenue bonds for the
water, sewer and storm utilities. The City currently maintains a rating of Aa3 with Moody’s and a rating of AA+ with
Standard & Poor’s for its general obligation debt.
The following schedule summarizes the City’s bonded debt:
Below is a summary of additional, non-bonded long-term debt of the City:
Washington State law limits the amount of general obligation debt a governmental entity may issue to 7.5% of its total
assessed value. Of the 7.5% limit, 2.5% is for general purposes, 2.5% is for open spaces/parks, and 2.5% is for utilities. Non-
voted (limited tax) general obligation indebtedness is limited to 1.5% of assessed valuation. The combination of unlimited
tax and limited tax general obligation debt for all purposes cannot exceed 7.5% of assessed valuation.
Summary of Capital Assets (net of depreciation)
As of 12/31/14As of 12/31/13As of 12/31/14As of 12/31/13As of 12/31/14As of 12/31/13
Land 107,948,445$ 103,974,530$ 12,276,187$ 14,505,063$ 120,224,632$ 118,479,593$
Building 49,309,381 45,933,742 2,047,005 6,218,212 51,356,386 52,151,954
Site improvements 8,792,961 7,207,075 181,141,467 170,249,102 189,934,428 177,456,177
Equipment 6,946,073 6,628,400 299,545 419,207 7,245,618 7,047,607
Intangibles 501,657 656,220 5,196,600 5,196,600 5,698,257 5,852,820
Infrastructure 201,159,595 210,343,717 - - 201,159,595 210,343,717
Construction in progress 9,017,708 4,987,061 9,766,126 16,314,775 18,783,834 21,301,836
383,675,820$ 379,730,745$ 210,726,930$ 212,902,959$ 594,402,750$ 592,633,704$
Governmental Activities Business-type Activities Total
Summary of Bonded Debt
Governmental
Activities
Business-type
Activities Total
General obligation bonds 30,729,536$ 1,305,464$ 32,035,000$
Revenue bonds - 31,430,000 31,430,000
Due to other governments 25,137,800 - 25,137,800
Premiums on Bond Issues 168,882 1,409,557 1,578,439
56,036,218$ 34,145,021$ 90,181,239$
Other Long-Term Debt
Public Works Trust Fund loans 11,808,711$
Capital Lease 435,068$
Employee leave benefits 2,463,411
Other Post Employment Benefits 6,211,464
20,918,654$
City of Auburn: 2014 CAFR Management’s Discussion and Analysis
32
Additional information can be found in note 9 and in the statistical section of this report.
Economic Factors
Over the past year, economic conditions continued to improve locally. Real estate activity improved and real property
values reversed a four-year downward trend, retail sales continued to increase, and the rate of unemployment in the
County and City remained at pre recessionary levels. While general economic conditions have improved over the past two
years, the City is still recovering from the impacts of the recession and several areas at the Federal and State levels of
government continue to cast a long shadow. These include the ongoing disagreements within the United States Congress
on finding a long-term solution to funding governmental services and, at the State level, long-term fiscal challenges remain
as the State will need to address holes left by one-time budget fixes in the current budget and the need to fund $1 billion to
meet basic education mandates. In 2014, State budget challenges resulted in continuing to fund streamlined sales tax
revenue distributions to cities at reduced levels and the diversion of local liquor revenues. Such actions may likely recur in
the future as the State continues to grapple with its financial situation.
As a result of these challenges, the City remains cautious and as a result continues to vigilantly monitor and control its
expenses. In the longer-term, the economic outlook for the City is positive. The City has seen significant private
investments in the community, including development within several blocks in downtown, which will serve as a catalyst for
future redevelopment, construction of several new buildings and businesses in the City including the St. Francis Medical
Pavilion, expansion of facilities including Orion Industries and Plygen Pacific Windows, as well as new residential
developments.
Recent significant development in the City includes the issuance of 374 building permits for residential homes and permits
for about $35.8 million in commercial construction, such as projects as the Auburn High School, two buildings at Green
River College, seven new warehouses, and the Auburn Marketplace.
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 general economic conditions have improved, short-
term challenges to the City’s overall financial condition remain. These challenges include a slowing in the pace of economic
growth 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 improved economic conditions and a series of community investments are expected to take
hold.
Requests for Information
This financial report is designed to provide a general overview of the City of Auburn’s finances for readers with an interest
in the City’s finances. Questions concerning this report, or requests for additional information, may be addressed to the
Finance Director, City of Auburn, 25 West Main Street, Auburn WA 98001-4998.
City of Auburn: 2014 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: 2014 CAFR Basic Financial Statements
34
City of Auburn: 2014 CAFR Basic Financial Statements
35
GovernmentalBusiness-Type
Activities Activities Total
ASSETS:
Cash and Cash Equivalents (Note 3)48,071,228$ 34,131,449$ 82,202,677$
Investments (Note 3)2,236,219 999,190 3,235,409
Receivables
Taxes 348,381 - 348,381
Customer Accounts 327,367 6,392,977 6,720,344
Other Receivables 2,139,366 956 2,140,322
Special Assessments 23,547 - 23,547
Due From Other Governmental Units (Note 6)2,944,937 629,739 3,574,676
Internal Balances (77,228) 77,228 -
Materials and Supplies Inventory 216,200 175,117 391,317
Restricted Assets:
Temporarily Restricted:
Cash and Cash Equivalents (Note 3)12,958,257 15,922,869 28,881,126
Due From Other Governmental Units (Note 6)1,235,847 - 1,235,847
Permanently Restricted:
Cash and Cash Equivalents (Note 3)1,574,148 - 1,574,148
Prepaids 874,965 - 874,965
Long-Term Contracts and Notes 31,370 735,900 767,270
Net Pension Asset (Note 10)473,761 - 473,761
Investment in Joint Ventures (Note 15)34,460,411 - 34,460,411
Depreciable Capital Assets (Net of Accumulated Depreciation) (Note 7)266,709,667 183,488,017 450,197,684
Non-Depreciable Capital Assets (Note 7)116,966,153 27,238,913 144,205,066
Total Assets 491,514,596 269,792,355 761,306,951
DEFERRED OUTFLOWS OF RESOURCES:
Deferred Outflow from Bond Refunding 22,344 41,546 63,890
Total Deferred Outflow of Resources 22,344 41,546 63,890
LIABILITIES:
Accounts Payable 5,722,149 4,847,325 10,569,474
Other Liabilities Payable 479,320 - 479,320
Payable From Restricted Assets:
Accrued Interest - 1,655,501 1,655,501
Deposits - 151,759 151,759
Unearned Revenue 92,889 - 92,889
Bonds and Other Debt Payable:
Due Within One Year (Note 9)3,026,087 2,831,367 5,857,454
Due in More Than One Year (Note 9)34,483,832 39,409,343 73,893,175
Due to Other Governmental Units:
Due Within One Year (Note 9)860,150 - 860,150
Due in More Than One Year (Note 9)24,277,650 - 24,277,650
Net OPEB Obligation (Note 11)6,211,464 - 6,211,464
Total Liabilities 75,153,541 48,895,295 124,048,836
NET POSITION
Net Investment in Capital Assets 348,080,505 169,098,916 517,179,421
Restricted:
Capital Projects 14,012,967 9,395,125 23,408,092
Nonexpendable Permanent Endowment 1,574,148 - 1,574,148
Debt Service 34,856 4,307,307 4,342,163
Tourist Promotion 166,896 - 166,896
Drug Investigation and Enforcement 539,236 - 539,236
Community Development Block Grant Program 44,904 - 44,904
Central Business District Development 31,321 - 31,321
Rate Stabilization - 413,178 413,178
Unrestricted 51,898,566 37,724,080 89,622,646
Total Net Position 416,383,399$ 220,938,606$ 637,322,005$
The notes to the basic financial statements are an integral part of this statement.
Primary Government
City of Auburn, WashingtonSTATEMENT OF NET POSITION
December 31, 2014
City of Auburn: 2014 CAFR Basic Financial Statements
36
ChargesOperating Capital
for ServicesGrants andGrants and
Expensesand FinesContributionsContributions
FUNCTIONS / PROGRAMS:
Primary Government
Governmental Activities:
General Government 8,363,427$ 1,160,198$ 83,987$ 378,141$
Public Safety 27,144,153 2,273,903 1,124,714 3,292
Transportation 16,150,877 1,660,270 4,989 3,650,410
Physical Environment 2,976,461 276,632 35,384 724,972
Culture and Recreation 11,094,524 2,876,185 68,351 808,245
Economic Environment 2,751,869 3,087,853 11,826 44,640
Health and Human Resources 622,374 - 4,401 391,530
Interest on Long-Term Debt 3,615,211 - - -
72,718,896 11,335,041 1,333,652 6,001,230
Business-Type Activities
Water 11,992,944 13,123,260 - 1,283,277
Sanitary Sewer 23,026,216 22,989,712 - 2,337,680
Storm Drainage 7,668,072 8,967,685 - 1,449,853
Solid Waste 12,760,313 13,609,724 111,025 -
Nonmajor Business-Type Activities 1,924,874 1,642,436 - -
57,372,419 60,332,817 111,025 5,070,810
Total Primary Government 130,091,315$ 71,667,858$ 1,444,677$ 11,072,040$
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, January 1
Net Position, December 31
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, 2014
Page 1 of 2
City of Auburn: 2014 CAFR Basic Financial Statements
37
GovernmentalBusiness-Type
Activities Activity Total
(6,741,101)$ -$ (6,741,101)$
(23,742,244) - (23,742,244)
(10,835,208) - (10,835,208)
(1,939,473) - (1,939,473)
(7,341,743) - (7,341,743)
392,450 - 392,450
(226,443) - (226,443)
(3,615,211) - (3,615,211)
(54,048,973) - (54,048,973)
- 2,413,593 2,413,593
- 2,301,176 2,301,176
- 2,749,466 2,749,466
- 960,436 960,436
- (282,438) (282,438)
- 8,142,233 8,142,233
(54,048,973)$ 8,142,233$ (45,906,740)$
15,867,838$ -$ 15,867,838$
19,744,684 - 19,744,684
4,068,667 - 4,068,667
9,040,015 - 9,040,015
2,888,797 - 2,888,797
4,601,925 - 4,601,925
105,117 51,261 156,378
136,585 2,377,362 2,513,947
4,065 322,871 326,936
37,832 - 37,832
5,294,793 (5,294,793) -
61,790,318 (2,543,299) 59,247,019
7,741,345 5,598,934 13,340,279
408,642,054 215,339,672 623,981,726
416,383,399$ 220,938,606$ 637,322,005$
Changes in Net Position
Net (Expense) Revenue and
Page 2 of 2
City of Auburn: 2014 CAFR Basic Financial Statements
38
City of Auburn: 2014 CAFR Basic Financial Statements
39
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: 2014 CAFR Basic Financial Statements
40
Other Total
General Arterial CapitalGovernmentalGovernmental
Fund StreetImprovement Funds Funds
ASSETS:
Cash and Cash Equivalents 21,514,534$ 2,712,406$ 9,551,858$ 14,589,330$ 48,368,128$
Investments (Note 3)2,236,219 - - - 2,236,219
Receivables:
Taxes 348,381 - - - 348,381
Customer Accounts 81,827 155,375 - - 237,202
Other Receivables 1,816,962 - - 319,710 2,136,672
Special Assessments - - - 23,547 23,547
Interfund Receivable (Note 5)- - 200,000 - 200,000
Long-Term Notes and Contracts - - 31,370 - 31,370
Due From Other Governmental Units (Note 6)2,939,555 363,550 27,837 844,460 4,175,402
Prepaids 127 - - - 127
Total Assets 28,937,605 3,231,331 9,811,065 15,777,047 57,757,048
LIABILITIES, DEFERRED INFLOWS AND FUND BALANCES:
Liabilities:
Current Payables 2,462,002 388,711 98,798 1,902,375 4,851,886
Customer Deposits 203,265 - - - 203,265
Other Liabilities Payable 1,275 - - 117,495 118,770
Unearned Revenue - 61,520 31,369 - 92,889
Total Liabilities 2,666,542 450,231 130,167 2,019,870 5,266,810
Deferred Inflow of Resources:
Unavailable Revenue-Special Assessments - - - 23,547 23,547
Unavailable Revenue-Other 1,311,245 - - - 1,311,245
Total Deferred Inflow of Resources 1,311,245 - - 23,547 1,334,792
Fund Balances: (Note 1)
Nonspendable 127 - - - 127
Nonspendable Permanent Endowment - - - 1,574,148 1,574,148
Restricted - 2,781,100 5,882,743 6,166,337 14,830,180
Committed - - - 5,066,181 5,066,181
Assigned 4,045,598 - 3,798,155 926,964 8,770,717
Unassigned 20,914,093 - - - 20,914,093
Total Fund Balances:24,959,818 2,781,100 9,680,898 13,733,630 51,155,446
Total Liabilities, Deferred Inflows and Fund Balances 28,937,605$ 3,231,331$ 9,811,065$ 15,777,047$ 57,757,048$
The notes to the basic financial statements are an integral part of this statement.
City of Auburn, Washington
BALANCE SHEET
GOVERNMENTAL FUNDS
December 31, 2014
City of Auburn: 2014 CAFR Basic Financial Statements
41
Total governmental fund balances as reported on this statement 51,155,446$
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 377,236,448
not reported in the governmental funds.
Other non-current assets used in governmental activities are not financial resources and therefore are
not reported in the governmental funds.
Investment in Joint Ventures 9,322,611
Prepaids 874,838
Interest receivable on investments 2,694
Net pension asset 473,761
10,673,904
Other long-term assets are not available to pay for current-period expenditures and therefore
are reported as unavailable revenue in the governmental funds.
Unearned revenue beyond the city's 30-day measurable and available period 1,311,245
Unavailabe revenue reported for special assessments 23,547
1,334,792
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 19,655,693
funds are included in governmental activities in the statement of net position.
Some liabilities are not due and payable in the current period and therefore are not reported
in the governmental funds.
Bonds and loans payable (35,448,777)
Premium on Bonds Payable (168,882)
Deferred amount on bond refunding 22,344
Interest payable (156,985)
Net other postemployment obligations (6,211,464)
Compensated absences payable (1,709,120)
(43,672,884)
Net position of government activities as reported on the statement of net position 416,383,399$
The notes to the basic financial statements are an integral part of this statement.
RECONCILIATION OF BALANCE SHEET OF GOVERNMENT FUNDS TO THE STATEMENT OF NET POSITION
December 31, 2014
City of Auburn, Washington
City of Auburn: 2014 CAFR Basic Financial Statements
42
Other Total
GeneralArterialCapitalGovernmentalGovernmental
FundStreetImprovement FundsFunds
REVENUES:
Taxes:
Property 15,805,041$ -$ -$ 128,297$ 15,933,338$
Retail Sales & Use 17,749,385 - - 1,995,299 19,744,684
Interfund Utility 3,487,429 - - 581,238 4,068,667
Utility 7,592,611 - - 1,447,404 9,040,015
Excise 319,377 - 2,469,637 99,783 2,888,797
Other - - - 42,988 42,988
Licenses and Permits 2,400,662 - - - 2,400,662
Intergovernmental 5,197,810 2,488,843 - 1,693,046 9,379,699
Charges for Services 4,165,901 56,371 - 1,495,440 5,717,712
Fines and Forfeitures 1,258,408 - - - 1,258,408
Special Assessments - - - 472,800 472,800
Investment Earnings 60,101 2,252 34,239 39,117 135,709
Miscellaneous 901,400 114,839 473,659 201,376 1,691,274
Total Revenues 58,938,125 2,662,305 2,977,535 8,196,788 72,774,753
EXPENDITURES:
Current:
General Government 7,712,018 - - - 7,712,018
Security of Persons and Property 26,964,270 - - 300,024 27,264,294
Physical Environment 3,086,738 - - - 3,086,738
Transportation 3,272,108 3,601,691 - 2,105,784 8,979,583
Economic Environment 2,222,779 - - 561,119 2,783,898
Health and Human Services 626,681 - - - 626,681
Culture and Recreation 9,517,324 - 240,000 1,786 9,759,110
Debt Service:
Principal 834,803 196,005 - 1,673,660 2,704,468
Interest and Other Costs 1,077,552 17,897 - 1,796,832 2,892,281
Capital Outlay 8,102 - 959,331 2,427,453 3,394,886
Total Expenditures 55,322,375 3,815,593 1,199,331 8,866,658 69,203,957
Excess (Deficiency) of Revenues
Over (Under) Expenditures 3,615,750 (1,153,288) 1,778,204 (669,870) 3,570,796
OTHER FINANCING SOURCES (USES):
Sales of Capital Assets 17,458 - - - 17,458
Insurance Recoveries 136,585 - - - 136,585
Issuance of Debt - 240,366 - - 240,366
Transfers In (Note 5)121,652 1,275,931 13,665 3,898,521 5,309,769
Transfers Out (Note 5)(2,576,143) (17,831) (1,213,898) (1,195,576) (5,003,448)
Total Other Financing Sources and Uses (2,300,448) 1,498,466 (1,200,233) 2,702,945 700,730
Net Change in Fund Balances 1,315,302 345,178 577,971 2,033,075 4,271,526
Fund Balances - Beginning 23,644,516 2,435,922 9,102,927 11,700,555 46,883,920
Fund Balances - Ending 24,959,818$ 2,781,100$ 9,680,898$ 13,733,630$ 51,155,446$
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, 2014
City of Auburn: 2014 CAFR Basic Financial Statements
43
Net change in fund balances per the Statement of Revenues, Expenditures and Changes in Fund Balance 4,271,526$
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 ($16,811,625)
exceeded depreciation ($14,975,028) in the current period.1,836,597
Certain Capital and Joint Venture activities do not use or provide current financial resources
but increase net position.1,845,728
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.(14,453)
Debt proceeds are reported as financing sources in governmental fund and thus contribute to the
change in fund balances. In the government-wide statements, however, issuing debt increases
long-term liabilities in the statement of net position and does not affect the statement of activities.
Issuance of new debt (240,366)
Debt transferred from Golf Fund to governmental activities (3,326,675)
Revenues in the Statement of Activities that do not provide current financial resources
are not reported as revenues in the funds:
Property taxes (65,500)
Special assessments 23,547
Other unavailable revenue 154,405
Amortization of bond premium 37,044
149,496
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.1,808,841
Repayment of the principal of long-term debt consumes the current financial resources of
governmental funds but has no effect on the net position. 1,441,709
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.1,138,442
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 prepaids (109,354)
Change in accrued interest payable 3,871
Change in net pension obligation or asset 214,462
Change in net other postemployment benefits (1,243,424)
Change in compensated absences payable (35,055)
(1,169,500)
Change in net position on the Statement of Activities 7,741,345$
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, 2014
City of Auburn: 2014 CAFR Basic Financial Statements
44
Variance with
Final Final Budget
OriginalAdoptedActualPositive
(GAAP Basis)(GAAP Basis)Results(Negative)
REVENUES:
Taxes:
Property 14,299,417$ 15,699,417$ 15,805,041$ 105,624$
Retail Sales & Use 14,487,335 15,987,335 17,749,385 1,762,050
Interfund Utility 3,147,673 3,203,673 3,487,429 283,756
Utility 8,026,559 7,970,559 7,592,611 (377,948)
Excise 300,991 300,991 319,377 18,386
Licenses and Permits 1,555,247 1,900,247 2,400,662 500,415
Intergovernmental 4,879,076 5,138,588 5,197,810 59,222
Charges for Services 1,767,729 3,476,812 4,165,901 689,089
Fines and Forfeitures 1,562,575 1,562,575 1,258,408 (304,167)
Investment Earnings 64,300 42,230 42,876 646
Miscellaneous 420,200 677,103 901,400 224,297
Total Revenues 50,511,102 55,959,530 58,920,900 2,961,370
EXPENDITURES:
Current:
General Government 9,350,745 9,362,838 7,712,018 1,650,820
Security of Persons and Property 26,528,749 29,229,453 26,964,270 2,265,183
Physical Environment 2,534,481 3,135,673 3,086,738 48,935
Transportation 3,329,135 3,355,134 3,272,108 83,026
Economic Environment 2,605,930 2,875,948 2,222,779 653,169
Health and Human Services 737,779 891,407 626,681 264,726
Culture and Recreation 7,718,461 9,470,517 9,517,324 (46,807)
Debt Service 1,636,050 1,702,735 1,683,075 19,660
Capital Outlay 5,000 - 8,102 (8,102)
Total Expenditures 54,446,330 60,023,705 55,093,095 4,930,610
Excess (Deficiency) of Revenues
Over (Under) Expenditures (3,935,228) (4,064,175) 3,827,805 7,891,980
OTHER FINANCING SOURCES (USES):
Sales of Capital Assets - - 17,458 17,458
Insurance Recoveries 25,000 25,000 136,585 111,585
Transfers In (Note 5)17,000 122,097 121,652 (445)
Transfers Out (Note 5)(52,000) (406,585) (159,756) 246,829
Total Other Financing Sources and Uses (10,000) (259,488) 115,939 375,427
Net Change in Fund Balances (3,945,228) (4,323,663) 3,943,744 8,267,407
Fund Balances - Beginning 8,311,010 15,416,388 15,416,388 -
Fund Balances - Ending 4,365,782$ 11,092,725$ 19,360,132$ 8,267,407$
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 5,599,686
Fund Balance - Ending (GAAP)24,959,818$
The notes to the basic financial statements are an integral part of this statement.
Budget Amounts
For the Year Ended December 31, 2014
City of Auburn, Washington
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
GENERAL FUND
City of Auburn: 2014 CAFR Basic Financial Statements
45
Variance with
Final Final Budget
OriginalAdoptedActualPositive
(GAAP Basis)(GAAP Basis)Results(Negative)
REVENUES:
Taxes:
Intergovernmental 3,501,108$ 8,977,937$ 2,488,843$ (6,489,094)$
Charges for Services - 45,272 56,371 11,099
Investment Earnings 2,500 2,500 2,252 (248)
Miscellaneous - - 114,839 114,839
Total Revenues 3,503,608 9,025,709 2,662,305 (6,363,404)
EXPENDITURES:
Current:
Transportation 3,696,308 13,102,500 3,601,691 9,500,809
Debt Service
Principal 176,063 176,063 196,005 (19,942)
Interest and Other Costs 19,899 19,899 17,897 2,002
Total Expenditures 3,892,270 13,298,462 3,815,593 9,482,869
Excess (Deficiency) of Revenues
Over (Under Expenditures (388,662) (4,272,753) (1,153,288) 3,119,465
OTHER FINANCING SOURCES (USES):
Issuance of Debt - 215,500 240,366 24,866
Transfers In (Note 5)346,050 2,515,038 1,275,931 (1,239,107)
Transfers Out (Note 5)- (127,885) (17,831) 110,054
Total Other Financing Sources and Uses 346,050 2,602,653 1,498,466 (1,104,187)
Net Change in Fund Balances (42,612) (1,670,100) 345,178 2,015,278
Fund Balances - Beginning 856,364 2,435,922 2,435,922 -
Fund Balances - Ending 813,752$ 765,822$ 2,781,100$ 2,015,278$
The notes to the basic financial statements are an integral part of this statement.
Budget Amounts
For the Year Ended December 31, 2014
City of Auburn, Washington
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
ARTERIAL STREET FUND
City of Auburn: 2014 CAFR Basic Financial Statements
46
City of Auburn: 2014 CAFR Basic Financial Statements
47
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
Auburn’s 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
Accounted for services, maintenance, and operations associated with the Auburn Municipal Golf
Course. This fund was discontinued in 2014 and the golf activities have been included in the General
Fund.
City of Auburn: 2014 CAFR Basic Financial Statements
48
GovernmentalActivities
Non-Major TotalSanitaryStormSolidGolfEnterpriseEnterprise InternalWaterSewerDrainageWasteCourseFundsFundsService Funds
ASSETS:Current Assets
Cash and Cash Equivalents 7,278,039$ 14,425,722$ 9,039,344$ 2,138,335$ -$ 1,250,009$ 34,131,449$ 14,235,505$
Investments - - 999,190 - - - 999,190 -
Restricted Cash:Bond Payments 1,767,011 446,248 826,649 - - - 3,039,908 -
Customer Deposits 11,959 83,272 3,422 - - 53,106 151,759 -
Other 6,793,024 516,972 5,421,206 - - - 12,731,202 -
Customer Accounts 1,284,125 2,560,533 1,044,486 1,503,833 - - 6,392,977 90,165 Other Receivables - - 956 - - - 956 -
Due From Other Governmental Units 61,676 - 481,238 63,799 - 23,026 629,739 5,382
Inventories 153,087 6,303 6,663 - - 9,064 175,117 216,200
Total Current Assets 17,348,921 18,039,050 17,823,154 3,705,967 - 1,335,205 58,252,297 14,547,252
Noncurrent Assets
Long-Term Contracts and Notes - 735,900 - - - - 735,900 -
Capital Assets: Land 897,971 1,695,023 5,687,014 - - 3,996,179 12,276,187 -
Water Rights 5,196,600 - - - - - 5,196,600 -
Buildings and Equipment 2,463,741 1,235,992 270,620 496,618 - 3,729,569 8,196,540 19,493,146
Improvements Other Than Buildings 111,221,873 93,749,199 58,942,632 - - 10,678,965 274,592,669 117,158
Construction in Progress 4,636,258 602,471 4,451,977 - - 75,420 9,766,126 34,727 Less: Accumulated Depreciation (45,320,116) (25,107,056) (20,855,594) (393,111) - (7,625,315) (99,301,192) (13,205,659)
Total Capital Assets (Net of A/D)79,096,327 72,175,629 48,496,649 103,507 - 10,854,818 210,726,930 6,439,372
Total Noncurrent Assets 79,096,327 72,911,529 48,496,649 103,507 - 10,854,818 211,462,830 6,439,372
Total Assets 96,445,248 90,950,579 66,319,803 3,809,474 - 12,190,023 269,715,127 20,986,624
DEFERRED OUTFLOW OF RESOURCES:
Deferred Outflow from Bond Refunding - - - - - 41,546 41,546 -
LIABILITIES:Current Liabilities:
Current Payables 1,177,194 1,779,824 582,483 1,214,244 - 93,580 4,847,325 870,263
Customer Deposits - - - - - - - 300
Interfund Payables (Note 5)- - - - - 200,000 200,000 - Loans Payable - Current 522,831 288,262 - - - - 811,093 -
Employee Leave Benefits - Current 169,040 88,800 161,701 28,288 - 16,695 464,524 148,950
Revenue Bonds Payable - Current 859,306 148,528 412,167 - - - 1,420,001 -
General Obligation Bonds Payable - Current - - - - - 135,749 135,749 - Payable From Restricted Assets:-
Accrued Interest 935,190 305,829 414,482 - - - 1,655,501 -
Deposits 11,959 83,272 3,422 - - 53,106 151,759 -
Total Current Liabilities 3,675,520 2,694,515 1,574,255 1,242,532 - 499,130 9,685,952 1,019,513
Noncurrent Liabilities
Employee Leave Benefits 38,801 20,383 37,117 6,493 - 3,832 106,626 34,190
Loans Payable 3,758,251 2,955,194 - - - - 6,713,445 - Revenue Bonds Payable 17,652,182 4,895,669 8,845,622 - - - 31,393,473 -
General Obligation Bonds Payable - - - - - 1,195,799 1,195,799 -
Total Noncurrent Liabilities 21,449,234 7,871,246 8,882,739 6,493 - 1,199,631 39,409,343 34,190
Total Liabilities 25,124,754 10,565,761 10,456,994 1,249,025 - 1,698,761 49,095,295 1,053,703
NET POSITION:
Invested in Capital Assets, Net of Related Debt56,303,758 63,887,978 39,238,858 103,506 - 9,564,816 169,098,916 6,439,372
Restricted for: Debt Service 2,462,134 656,592 1,188,581 - - - 4,307,307 -
Capital Projects 5,162,710 800 4,231,615 - - - 9,395,125 -
Rate Stabilization - - 413,178 - - - 413,178 -
Unrestricted 7,391,892 15,839,448 10,790,577 2,456,943 - 967,992 37,446,852 13,493,549
Total Net Position 71,320,494$ 80,384,818$ 55,862,809$ 2,560,449$ -$ 10,532,808$ 220,661,378$ 19,932,921$
Adjustment to reflect the consolidation
of internal service funds related to
enterprise funds 277,228 Net position of business-type activities 220,938,606$
The notes to the basic financial statements are an integral part of this statement.
City of Auburn, WashingtonSTATEMENT OF NET POSITIONPROPRIETARY FUNDSDecember 31, 2014
Enterprise Funds
City of Auburn: 2014 CAFR Basic Financial Statements
49
GovernmentalActivitiesNon-Major Total
Sanitary Storm Sold GolfEnterpriseEnterpriseInternal
Water SewerDrainageWasteCourse Funds FundsService Funds
OPERATING REVENUES:
Charges of Services 13,123,260$ 22,989,712$ 8,967,685$ 13,609,724$ -$ 1,013,169$ 59,703,550$ 11,911,343$
Other Operating Revenue - - - - - 629,267 629,267 240,628 Total Operating Revenue 13,123,260 22,989,712 8,967,685 13,609,724 - 1,642,436 60,332,817 12,151,971
OPERATING EXPENSES:
Operations & Maintenance 4,542,882 16,586,466 2,113,223 11,002,149 - 634,175 34,878,895 8,986,830
Administration 2,927,033 2,145,682 2,961,021 766,281 - 747,528 9,547,545 1,065,837
Depreciation / Amortization 2,410,604 1,908,420 1,533,693 18,819 - 454,779 6,326,315 1,336,579 Other Operating Expenses 1,528,313 1,863,165 835,027 973,064 - 20,351 5,219,920 - Total Operating Expenses 11,408,832 22,503,733 7,442,964 12,760,313 - 1,856,833 55,972,675 11,389,246
Operating Income (Loss)1,714,428 485,979 1,524,721 849,411 - (214,397) 4,360,142 762,725
NON-OPERATING REVENUE (EXPENSE):`
Interest Revenue 13,972 13,604 20,953 1,526 - 1,206 51,261 12,357 Other Non-Operating Revenue 347,225 249,400 1,174,205 111,265 - 606,292 2,488,387 52,584
Gain on Sale of Capital Assets - - 322,871 - - - 322,871 1,060 Interest Expense (546,255) (243,820) (224,809) - - (68,041) (1,082,925) - Other Non-Operating Expenses (37,857) (418) (299) - (4,957,001) - (4,995,575) - Total Non-Operating Revenue (Expense)(222,915) 18,766 1,292,921 112,791 (4,957,001) 539,457 (3,215,981) 66,001
Income (Loss) Before Contributions & Transfers1,491,513 504,745 2,817,642 962,202 (4,957,001) 325,060 1,144,161 828,726
Capital Contribution 1,283,277 2,337,680 1,449,853 - - - 5,070,810 - Transfers In (Note 5)- - 80,410 - - - 80,410 701,146 Transfers Out (Note 5)(110,271) (105,803) (172,031) - (30,097) - (418,202) (669,675)
Change in Net Position 2,664,519 2,736,622 4,175,874 962,202 (4,987,098) 325,060 5,877,179 860,197
Net Position, January 1 68,655,975 77,648,196 51,686,935 1,598,247 4,987,098 10,207,748 214,784,199 19,072,724
Net Position, December 31 71,320,494$ 80,384,818$ 55,862,809$ 2,560,449$ -$ 10,532,808$ 220,661,378$ 19,932,921$
Change in net position from this statement 5,877,179
Adjustment to reflect the consolidation of internal service fund
activities related to enterprise funds (278,245)
Change in net position of business-type activities 5,598,934$
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, 2014
Enterprise Funds
City of Auburn: 2014 CAFR Basic Financial Statements
50
Page 1 of 2
GovernmentNon Major Activities
SanitaryStorm Solid GolfEnterprise Internal
WaterSewerDrainageWasteCourseFunds TotalService Funds
CASH FLOWS FROM OPERATING ACTIVITIES:Cash Received from Users 12,833,818$ 22,792,138$ 8,858,403$ 13,507,918$ -$ 1,641,849$ 59,634,126$ 12,157,501$ Cash Paid to Suppliers for Goods & Services (3,974,501) (15,384,636) (2,080,427) (11,066,212) - (769,616) (33,275,392) (6,532,968)
Cash Paid for Taxes (1,528,313) (1,863,193) (835,027) (973,064) - (20,352) (5,219,949) (3,498)
Cash Paid to Employees (3,472,557) (2,227,425) (3,088,516) (612,830) - (626,131) (10,027,459) (3,737,882)
Other Cash Received - - (597,204) - - - (597,204) 799
Net Cash Provided (Used) by Operating Activities 3,858,447 3,316,884 2,257,229 855,812 - 225,750 10,514,122 1,883,952
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:Interfund Loan Payable - - - - - 200,000 200,000 -
Operating Grant 95,094 70,091 (258,561) 110,091 - 597,532 614,247 2,354 Other Non-Operating Revenue 77,023 17,107 7,669 - - 4,081 105,880 8,406
Transfers In - - 80,410 - - - 80,410 701,146
Transfers Out (110,271) (105,803) (172,031) - (30,097) - (418,202) (669,675)
Net Cash Provided (Used) by Noncapital Financing Activities 61,846 (18,605) (342,513) 110,091 (30,097) 801,613 582,335 42,231
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES:Proceeds from Sale of Equipment - - 584,091 - - - 584,091 1,060 Purchase of Capital Assets (3,156,159) (1,332,085) (3,799,529) - - (858,708) (9,146,481) (1,653,614)
Contributed Capital 585,259 252,626 625,772 - (176,855) - 1,286,802 -
Capital Grants - - 1,120,128 - - 61,826 1,181,954 -
Proceeds from Other Governments - 90,000 - - - - 90,000 - Proceeds from Insurance Settlement 71,232 - 46,405 - - - 117,637 42,663 Principal Payment on Debt (1,359,374) (433,107) (405,186) - - (125,000) (2,322,667) -
Interest Payment on Debt (623,595) (255,579) (264,699) - - (63,942) (1,207,815) -
Debt Proceeds 129,115 - - - - - 129,115 -
Net Cash Provided (Used) for Capital and Related Financing Activities (4,353,522) (1,678,145) (2,093,018) - (176,855) (985,824) (9,287,364) (1,609,891)
CASH FLOW FROM INVESTING ACTIVITIES:Interest Received 13,972 13,604 19,053 1,526 - 5,885 54,040 12,357
Net Cash Provided (Used) in Investing Activities 13,972 13,604 19,053 1,526 - 5,885 54,040 12,357
Net Increase (Decrease) in Cash and Cash Equivalents (419,257) 1,633,738 (159,248) 967,429 (206,952) 47,424 1,863,134 328,649
Cash and Cash Equivalents - Beginning of Year 16,269,290 13,838,476 15,449,869 1,170,906 206,952 1,255,691 48,191,184 13,906,856
Cash and Cash Equivalents - End of Year 15,850,033$ 15,472,214$ 15,290,621$ 2,138,335$ -$ 1,303,115$ 50,054,318$ 14,235,505$
CASH AT END OF YEAR CONSISTS OF:Cash and Cash Equivalents 7,278,039 14,425,722 9,039,344 2,138,335 - 1,250,009 34,131,449 14,235,505 Restricted Cash - Bond Payments 1,767,011 446,248 826,649 - - - 3,039,908 -
Restricted Cash - Customer Deposits 11,959 83,272 3,422 - - 53,106 151,759 -
Restricted Cash - Other 6,793,024 516,972 5,421,206 - - - 12,731,202 -
Total Cash 15,850,033$ 15,472,214$ 15,290,621$ 2,138,335$ -$ 1,303,115$ 50,054,318$ 14,235,505$
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, 2014
City of Auburn: 2014 CAFR Basic Financial Statements
51
Page 2 of 2
GovernmentNon Major ActivitiesSanitaryStormSolidGolfEnterpriseInternal
WaterSewerDrainageWasteCourseFunds TotalService Funds
RECONCILIATION OF NET OPERATING INCOME TO NEW CASH
PROVIDED BY OPERATING ACTIVITIES
Operating Income (Loss)1,714,428$ 485,979$ 1,524,721$ 849,411$ -$ (214,397)$ 4,360,142$ 762,725$
ADJUSTMENTS TO RECONCILE OPERATING INCOME TONET CASH PROVIDED (USED) BY OPERATING ACTIVITIES:
Depreciation 2,410,604 1,908,420 1,533,693 18,819 - 454,779 6,326,315 1,336,579 Asset (Increases) Decreases:
Accounts Receivable (285,064) (185,396) (112,704) (101,806) - - (684,970) 8,529
Inventory (12,059) 706 903 - - 4,301 (6,149) (15,086)
Liability Increases (Decreases):Accounts & Vouchers Payable 90,116 1,142,857 (86,129) 81,483 - (20,194) 1,208,133 (266,321)
Deposits Payable (4,378) (12,178) 3,422 - - (587) (13,721) (2,200)
Wages & Benefits Payable 8,579 9,218 10,617 1,763 - 1,778 31,955 45,347
Compensated Absences Payable (25,922) (32,304) (19,791) 6,142 - 70 (71,805) 14,379 A/P Related to Capital Asset Acquisition (37,857) (418) (299) - - - (38,574) - Unearned Revenue - - (597,204) - - - (597,204) -
Total Adjustments 2,144,019 2,830,905 732,508 6,401 - 440,147 6,153,980 1,121,227
Net Cash Provided (Used) by Operating Activities 3,858,447$ 3,316,884$ 2,257,229$ 855,812$ -$ 225,750$ 10,514,122$ 1,883,952$
SCHEDULE OF NONCASH INVESTING, CAPITAL ANDFINANCING ACTIVITIES
Capital Assets Acquired by Contributed Capital 698,018 2,085,054 824,081 - - - 3,607,153 -
Increase (Decrease) in Fair Value of Investment - - (1,900) - - - (1,900) -
Total Non Cash Investing, Capital and Financing Activities 698,018$ 2,085,054$ 822,181$ -$ -$ -$ 3,605,253$ -$
The notes to the basic financial statements are an integral part of this statement.
PROPRIETARY FUNDS
City of Auburn, WashingtonSTATEMENT OF CASH FLOWS
For the Fiscal Year Ended December 31, 2014
City of Auburn: 2014 CAFR Basic Financial Statements
52
City of Auburn: 2014 CAFR Basic Financial Statements
53
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: 2014 CAFR Basic Financial Statements
54
Fire Relief
Pension Agency
Trust Fund Fund
ASSETS:
Cash and Cash Equivalents 503,668$ 724,783$
Investments 2,093,604 -
Receivables:
Customer Accounts - 468
Interest 18,992 -
Due from Other Governmental Units - 30,000
Total Assets 2,616,264 755,251
LIABILITIES:
Current Payables 6,802 232,629
Due to Other Governmental Units - 522,622
Total Liabilities 6,802 755,251
NET POSITION
Held in Trust for Pension Benefits and Other Purposes 2,609,462$ -$
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, 2014
City of Auburn: 2014 CAFR Basic Financial Statements
55
Fire Relief
Pension
Trust fund
ADDITIONS:
Contributions:
Fire Insurance Premiums 77,558$
Employer 231,000
Investment Earnings 14,435
Total Additions 322,993
DEDUCTIONS:Benefit Payments 149,140
Administrative Expenses 11,381
Total Deductions 160,521
Change in Net Postion 162,472
Net Position - Beginning 2,446,990
Net Position - Ending 2,609,462$
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, 2014
City of Auburn: 2014 CAFR Basic Financial Statements
56
City of Auburn: 2014 CAFR Notes to the Financial Statements
57
City of Auburn
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2014
Note 1 – Summary of Significant Accounting Policies ........................................................................................................ 58
A. Reporting Entity ........................................................................................................................................... 58
B. Basic Financial Statements .......................................................................................................................... 59
C. Measurement Focus, Basis of Accounting, and Basis of Presentation...................................................... 59
D. Budget and Budgetary Accounting ............................................................................................................. 62
E. Assets, Liabilities and Fund Balance ............................................................................................................ 63
1. Deposits and Investments .................................................................................................................... 63
2. Receivables ............................................................................................................................................ 64
3. Interfund Receivables and Payables .................................................................................................... 64
4. Amounts Due From Other Governmental Units .................................................................................. 64
5. Inventories and Prepaid Expenses ....................................................................................................... 64
6. Restricted Assets .................................................................................................................................. 64
7. Interfund Transactions ......................................................................................................................... 64
8. Capital Assets ........................................................................................................................................ 64
9. Deferred Outflows/Inflows of Resources ............................................................................................ 65
10. Compensated Absences ....................................................................................................................... 65
11. Unearned Revenues .............................................................................................................................. 66
12. Fund Balance Components – Proprietary Funds ................................................................................. 66
13. Fund Balance Components – Governmental Funds ............................................................................ 66
F. Revenues, Expenditures and Expenses ...................................................................................................... 67
G. Estimates ...................................................................................................................................................... 68
Note 2 – Stewardship, Compliance and Accountability ................................................................................................... 68
Note 3 – Deposits and Investments .................................................................................................................................. 68
Note 4 – Property Taxes .................................................................................................................................................... 70
Note 5 – Interfund Activity ................................................................................................................................................ 72
Note 6 – Due From Other Governmental Units ................................................................................................................ 74
Note 7 – Capital Assets and Depreciation ......................................................................................................................... 75
Note 8 – Capital Lease Obligation ..................................................................................................................................... 76
Note 9 – Long‐Term Liabilities ........................................................................................................................................... 77
Note 10 – Pension Plans ....................................................................................................................................................... 81
Note 11 – Other Post‐Employment Benefits ...................................................................................................................... 92
Note 12 – Association of Washington Cities Employment Benefit Trust .......................................................................... 93
Note 13 – Construction Commitments ............................................................................................................................... 95
Note 14 – Cemetery Endowed Care Fund ........................................................................................................................... 95
Note 15 – Joint Ventures / Related Party ............................................................................................................................ 95
Note 16 – Jointly Governed Organization / Related Party ................................................................................................. 99
Note 17 – Contingencies and Litigations ............................................................................................................................ 99
Note 18 – Risk Management and Insurance ....................................................................................................................... 99
City of Auburn: 2014 CAFR Notes to the Financial Statements
58
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 2014 financial statements have been presented in accordance with the following new Governmental Accounting
Standards Board (GASB) Statements:
a. GASB Statement No. 67 – Financial Reporting for Pension Plans; an amendment of GASB Statement No. 25. The
statement replaces the requirements of Statement No. 25 and Statement No. 50 related to the pension plans that
are administered through trusts or equivalent arrangements. There is no material impact to the City for
implementing this standard.
b. GASB Statement No. 69 – Government Combinations and Disposals of Government Operations. The statement
establishes accounting and financial reporting standards for mergers, acquisitions, and transfers of operations. It
provides guidance on how to determine the gain or loss on a disposal of governmental operations. There is no
material impact to the City for implementing this standard.
c. GASB Statement No. 70 – Accounting and Financial Reporting for Nonexchange Financial Guarantees was adopted
for fiscal year 2014 reporting. The statement establishes accounting and financial reporting standards for
situations where a local government, as a guarantor, agrees to indemnify a third‐party obligation holder under
specific circumstances. The guidance is provided for situations where a local government extends or receives a
nonexchange financial guarantee. There is no material impact to the City for implementing this standard.
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. As such, the VRFA is not included in the
City of Auburn’s financial reporting entity.
The government‐wide financial statements consist of the government‐wide statement of net position and the government‐
wide statement of activities.
City of Auburn: 2014 CAFR Notes to the Financial Statements
59
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 statements of revenues, expenditures and changes
in fund balance budget and actual, 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, deferred outflows of resources, and liabilities of the primary
government. The net position section of this statement represents the residual amount of assets and their associated
liabilities, and deferred outflow of resources. 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 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. The City’s policy is to allocate indirect costs to a specific function or segment. 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.
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
balance/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. Governmental fund financial
City of Auburn: 2014 CAFR Notes to the Financial Statements
60
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
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 eligible 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 and deferred inflow of resources generally are included on their balance sheets.
Their reported fund balance 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
City of Auburn: 2014 CAFR Notes to the Financial Statements
61
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 local
improvement districts (LID) guarantee fund which provides financial security for outstanding LID bonds. No
debt service funds are considered major funds and are reported within the “Other Governmental Funds”.
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 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.
GASB Statement No. 62 Codification of Accounting and Financial Reporting Guidance Contained in Pre‐November 30, 1989
FASB and AICPA Pronouncements, provides a codification of private‐sector standards of accounting and financial
reporting issued prior to December 1, 1989, to be followed in the financial statements of proprietary fund types. The
City has adopted provisions of GASB Statement No. 62.
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, the solid waste fund and the golf course fund. The golf course fund was
used to account for business operations at the City’s municipal golf course. This fund is now closed and the
golf course activities have been included in the General Fund.
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, the cost of employees affected by an occupational injury or illness,
and its insurance premiums.
City of Auburn: 2014 CAFR Notes to the Financial Statements
62
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
an 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 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 contributions to the Fire Relief and Pension Plan. During 2014, the City contributed $231,000 toward the
fund. Pension benefits are recognized when due; plan administration costs are also recognized when incurred in
this fund.
b. Agency Fund – This fund is custodial in nature (assets equal liabilities) and does not involve a measurement of
results of operations.
D. Budget and Budgetary Accounting
The City of Auburn budgets in accordance with the Revised Code of Washington (RCW) 35A.33 for the general and special
revenue funds. For governmental funds, there are no substantial differences between the budgetary basis and generally
accepted accounting principles. Budgetary accounts are integrated in fund ledgers for all budgeted funds, but the financial
statements include budgetary comparisons for the biennial budgeted governmental funds only. Budgets established for
proprietary and trust funds are “management budgets”, and are not legally required to be reported and, as such, are not
reported in the CAFR.
The biennial budget is proposed by the Mayor and adopted by the City Council with legal budgetary control at the fund
level; i.e., expenditures and other financing sources may not exceed budgeted appropriations at the fund level. The Mayor
may authorize transfers within funds; however, the City Council must approve by ordinance any amendments that increase
the total for the fund. Any unexpended appropriation balances lapse at the end of the fiscal year.
The City prepares the biennial budget on the modified accrual basis, which conforms to Generally Accepted Accounting
Principles (GAAP). The CAFR includes budgetary comparisons for those governmental funds with legally adopted budgets.
Budget amounts include the adopted current year budget appropriations and any revisions made during the year.
State law establishes the budget process and the time limits under which a budget must be developed. The City follows
the procedures outlined below to establish its biennial budget:
a. 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.
b. Public hearings are conducted at the Auburn City Council Meetings to obtain taxpayer comments.
c. Prior to December 31st, the budget is legally enacted through passage of an ordinance.
d. The final operating budget as adopted is published and distributed after adoption. Copies of the budget are made
available to the public.
City of Auburn: 2014 CAFR Notes to the Financial Statements
63
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, 2014, the Washington State Local
Government Investment Pool (LGIP) was holding $106,995,558 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‐7 of 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.
OriginalFinal
BudgetRevisionsBudget
Governmental Funds
General Fund54,498,330$ 5,931,960$ 60,430,290$
Total Governmental Funds54,498,330 5,931,960 60,430,290
Special Revenue Funds:
Local Street1,444,300$ 1,128,981$ 2,573,281$
Arterial Street3,892,270 9,534,077 13,426,347
Hotel/Motel Tax85,000 - 85,000
Arterial Street Preservation2,000,000 1,309,295 3,309,295
Drug Forfeiture Fund280,915 30,733 311,648
Housing and Community Development460,000 152 460,152
Recreation Trails- - -
Business Improvement Area55,000 - 55,000
Cumulative Reserve1,434,624 2,762,084 4,196,708
Mitigation Fees426,050 2,219,662 2,645,712
Total Special Revenue Funds10,078,159 16,984,984 27,063,143
Total Budgeted Funds 64,576,489$ 22,916,944$ 87,493,433$
ORIGINAL AND SUPPLEMENTAL APPROPRIATIONS
City of Auburn: 2014 CAFR Notes to the Financial Statements
64
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.
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
In accordance with the utility bond ordinances, state law, or other agreements, separate restricted assets have been
established. These assets are restricted for specific purposes including the establishment of bond reserve funds, utility
rate stabilization funds, financing the ongoing capital improvement programs of the various utilities, customer
deposits, nonexpendable permanent cemetery endowment and other purposes.
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 in the internal services funds and
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.
City of Auburn: 2014 CAFR Notes to the Financial Statements
65
Major outlays for capital assets and improvements are capitalized as projects are constructed. The costs of normal
maintenance and repairs that do not add to the value of the asset or materially extend asset lives are not capitalized.
For proprietary funds, interest costs incurred to bring certain assets to the condition and location necessary for their
intended use are capitalized as part of the historical cost of acquiring the assets. Additionally, in situations involving
the acquisition of certain assets financed with the proceeds of tax‐exempt borrowing, any interest earned on related
interest‐bearing investment from such proceeds are offset against the related interest costs in determining either
capitalization rates or limitations on the amount of interest costs to be capitalized.
Capital assets of enterprise and internal service funds are recorded at cost. The capital assets of the airport are carried
at cost and include those acquired with capital contributed by the Federal Government.
Capital assets of all funds are depreciated, and are calculated on the straight‐line method using estimated lives as
follows:
Asset
Capitalization
Threshold Depreciation Method
Estimated Useful
Life
Building $5,000 Straight‐line 20 ‐ 50 years
Other Improvements $5,000 Straight‐line 10 ‐ 50 years
Equipment/Machinery $5,000 Straight‐line 2 ‐ 20 years
Infrastructure $5,000 Straight‐line 25 ‐ 50 years
Utility Plant $5,000 Straight‐Line 25 ‐ 50 years
At the inception of capital leases at the government fund reporting level, the net present value of future minimum
lease payments allocable to the capital asset is reflected as expenditures and an “other financing source” of an equal
amount.
9. Deferred Outflows/Inflows of Resources
Deferred outflow of resources is the consumption of net position by the government that is applicable to a future
reporting period. The deferred amount on special assessments consist of special assessments not due within one year
is reported as deferred outflows of resources in the governmental funds. Deferred inflow of resources is acquisition of
net position by the government that is applicable to a future reporting period. The difference between the carrying
amount of redeemed and/or defeased debt and its reacquisition price is the deferred amount on refunding and is
amortized over the remaining life of the debt, or the life of the new debt, whichever is shorter.
10. Compensated Absences
City employees accrue vacation leave at a variable rate based on years of service. In general, employees are allowed to
accumulate vacation leave up to what would be earned in two years.
Unaffiliated employees accrue sick leave at the rate of eight hours per month up to 960 hours. Sick leave
accumulations over 960 hours at year‐end are paid at 25%. Sick leave is not paid upon termination except in some
instances upon separation in good standing, where employees hired before 12/31/1984 can be reimbursed at their
current rate for unused sick leave up to a maximum of 960 hours, at a rate based on years of service. The City’s union
contracts have varied sick leave accruals and payout options.
In general, non‐exempt employees can accrue up to 80 hours of compensatory time. The City reports compensated
absences as liabilities in the government‐wide statement of net 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.
City of Auburn: 2014 CAFR Notes to the Financial Statements
66
11. 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.
12. 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.
13. Fund Balance Components – Governmental Funds
Fund balance is presented in the governmental fund financial statements and represents the difference between
assets and liabilities reported within the governmental fund.
Beginning with the most restrictive constraints, fund balance amounts are reported in the following categories:
a. 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.
b. 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.
c. Committed fund balance is self‐imposed limitations imposed at the highest level of decision making
authority, namely, Mayor and City Council. Mayor and City Council approval by ordinance is required to
commit, modify or rescind resources.
d. 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 the Finance Director shall
have the authority to assign amounts of fund balance to a specific purpose; however, before expenditure,
amounts must be appropriated by the City Council which is often adopted by City Council in the biennial
budget ordinance. For governmental funds, other than the General Fund, this is the residual amount
within the fund that is not restricted or committed.
e. 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.
City of Auburn: 2014 CAFR Notes to the Financial Statements
67
The following shows the composition of the fund balance of the governmental funds for the fiscal year ended
December 31, 2014:
ArterialCapitalOtherTotal
GeneralStreetImprovementGovernmentalGovernmental
FundFundFundFundsFunds
Nonspendable
Prepaids127$ -$ -$ -$ 127$
Cemetery Endowment- - - 1,574,148 1,574,148
Total Nonspendable127 - - 1,574,148 1,574,275
Restricted
Major Street Construction- $2,781,100- - 2,781,100
REET 1 Allowable Projects- - 2,579,253 - 2,579,253
REET 2 Allowable Projects3,303,490 - 3,303,490
Arterial Street Presevation Fund 3,162 3,162
Parks and Trails Construction Projects- - - 527,770 527,770
City Tourism Promotion- - - 166,896 166,896
Drug Investigation and Enforcement- - - 539,236 539,236
Community Development Block Grant Program- - - 44,904 44,904
Recreational Trail Development- - - 35,925 35,925
Downtown Business Area Improvements- - - 31,321 31,321
Street and Fire Service Mitigation Fees - - - 4,782,267 4,782,267
Debt Service- - - 34,856 34,856
Total Restricted- 2,781,100 5,882,743 6,166,337 14,830,180
CommittedLocal Street Improvements (Save our Streets)- - - 1,890,490 1,890,490 Aterial Street Preservation- - - 3,175,691 3,175,691 Total Committed- - - 5,066,181 5,066,181
AssignedAppropriations Over Estimated Revenue4,045,598 - - - 4,045,598 Arterial Street Presevation Fund3,798,155 2,127 3,800,282 Drug Investigation and Enforcement- - - 585 585 Recreation Trail Development- - - 31 31 Downtown Business Area Improvements- - - 50 50 Local Street Improvements- - - 152,487 152,487 School Administration Fees- - - 118,245 118,245 Cemetery Capital Enhancement and Maintenance- - - 95,500 95,500 Downtown Infrastructure Improvements- - - 557,939 557,939 Total Assigned4,045,598 - 3,798,155 926,964 8,770,717
UnassignedUnassigned20,914,093 - - - 20,914,093
Total Unassigned20,914,093 - - - 20,914,093
Total Fund Balances 24,959,818$ 2,781,100$ 9,680,898$ 13,733,630$ 51,155,446$
Governmental Fund BalancesDecember 31, 2014
Major
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.
City of Auburn: 2014 CAFR Notes to the Financial Statements
68
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, 2014, the carrying amount of the City’s cash demand deposits with Key Bank totaled $6,798,044 while the
bank balance was $8,161,365. In addition, there was $92,800 in petty cash ($10,000 in the Drug 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, 2014 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 2014, the net increase in the fair value of investments being held for more than one year is $4,915 at year‐end.
City of Auburn: 2014 CAFR Notes to the Financial Statements
69
As of December 31, 2014, the City had the following investments and maturities:
Interest Rate Risk
Interest rate risk is the risk that changes in interest rates of debt investments will adversely affect the fair value of an
investment. As a means of limiting its exposure to fair value losses arising from rising interest rates, the City’s investment
policy limits the maximum maturity of an investment to not greater than three years, unless an investment is matched to
an anticipated future cash flow. The segmented time distribution presented in the schedule of investments by maturity
above indicates how the City has managed its interest rate risk.
Credit Risk
Credit risk is the risk that an issuer or other counterparty to an investment will not fulfill its obligations. State law and the
City’s investment policy limits the instruments in which the City may invest. These include:
1. United States bonds
2. United States certificates of indebtedness
3. Bonds or warrants of the State of Washington
4. General obligation or utility revenue bonds or warrants of its own or of any other city or town in the State
5. Its own bonds or warrants of a local improvement district which are within the protection of the local
improvement guaranty fund
6. Savings or time accounts in designated public depositories
7. Certificates, notes or bonds of United States agencies, or corporations wholly owned by the United States.
FairLess than1 to 22 to 3Greater than
Investment TypeValue1 yearyearsyears3 years
State investment pool 106,995,558$ 106,995,558$ -$ -$ -$
US Treasuries 76,464 - 76,464 - -
US Agencies 5,252,549 - 3,235,409 - 2,017,140
112,324,571$ 106,995,558$ 3,311,873$ -$ 2,017,140$
Reconciliation to government-
wide statement of net position:
Total investments above 112,324,571$
Plus: cash in checking 6,798,044
Plus: petty cash 92,800
Less: cash investments in fiduciary funds (3,322,055)
Total cash and investments, government-
wide statement of net position 115,893,360$
Schedule of Investments by Maturities
As of December 31, 2014
Investment maturities
GovernmentalBusiness-Type
ActivitiesActivitiesTotal
Cash and Cash Equivalents48,071,228$ 34,131,449$ 82,202,677$
Cash with Outside Agencies- - -
Investments2,236,219 999,190 3,235,409
Temporarily Restricted:
Cash and Cash Equivalents12,958,257 15,922,869 28,881,126
Permanently Restricted:
Cash and Cash Equivalents1,574,148 - 1,574,148 64,839,852$ 51,053,508$115,893,360$
Reconciliation of Cash and Investments
Government-Wide Statement of Net Position
As of December 31, 2014
City of Auburn: 2014 CAFR Notes to the Financial Statements
70
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, 2014, the City had investments in a limited number of investment instruments as follows:
U.S. Treasuries
State Local Government Investment Pool
Federal Farm Credit Bank Bonds
Federal Home Loan Bank
Lakehaven Utility District (WA) Bonds
With the exception of the State Local Government Investment Pool which is not rated and Lakehaven Utility District (WA)
Bonds which has a Moody’s rating of Aa2, all other investments above carried a rating of Aaa by Moody’s rating service at
December 31, 2014.
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.
The following is a schedule of investments by fund type:
NOTE 4 – PROPERTY TAXES
Property taxes received during tax year 2014 were $15,933,338 including collection of prior year delinquent assessments.
Property taxes assessed for collection in tax year 2014 were based on a regular tax levy of $2.10 per $1,000 on a total 2013
assessed value of $7,288,022,732.
State
InvestmentU.S.
PoolSecuritiesTotal
General Fund-$ 2,236,219$ 2,236,219$
Enterprise Funds- 999,190 999,190
Fiduciary Funds- 2,093,604 2,093,604
Treasurer's Residual Funds106,995,558 - 106,995,558
Total106,995,558 5,329,013$ 112,324,571$
As of December 31, 2014
Schedule of Investments by Fund Category and Investment Type
City of Auburn: 2014 CAFR Notes to the Financial Statements
71
For levy year 2014, to be received in 2015, the City’s regular tax levy is $2.17 per $1,000 on a 2014 assessed valuation of
$8,238,289,417, as of December 31, 2014, for a total regular levy of $16,879,116. State law provides that debt cannot be
incurred in excess of the following percentages of the taxable property of the City.
1.50% of assessed value without a vote of the people
2.50% of assessed value with a vote of the people
The City has additional authority to incur the following debt as a percentage of total valuation.
2.50% of assessed value with a vote of the people, indebtedness is for utilities
2.50% of assessed value with a vote of the people, indebtedness is for parks, or open space development
At December 31, 2014, the debt limits for the City were as follows:
For Parks or
WithoutGeneralForOpen Space
a VotePurposesUtilitiesDevelopmentTotalItem1.50%1.00%2.50%2.50%Capacity
Legal Limit123,574,341$ 82,382,894$ 205,957,235$ 205,957,235$ 617,871,705$
Outstanding indebtedness(61,892,041) - - - (61,892,041)
Margin available61,682,300$ 82,382,894$ 205,957,235$ 205,957,235$ 555,979,664$
With a Vote
The County Treasurer acts as an agent to collect property taxes levied in the county for all taxing authorities. Taxes are
levied annually on January 1 on property values listed as of the prior August 31. The County assesses property at 100% of fair
value. A revaluation of all property is required at least once every four years and a physical inspection is required at least
once every six years.
Property taxes levied by the County Assessor and collected by the County Treasurer become a lien on the first day of the
levy year and may be paid in two installments if the total amount exceeds $10. The first half of real property taxes is due on
April 30 and the balance is due October 31. Delinquent taxes bear interest at the rate of 12% and are subject to additional
penalties if not paid as scheduled.
At year‐end, property taxes are recorded as a receivable with the portion not expected to be collected within 30 days after
the current period are reported as other unavailable revenue in the deferred inflow of resources section of the
governmental funds financial statements. 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 $1,000
of value. If the taxes of all districts exceed this amount, each is proportionately reduced until the total is at or below
the 1% limit.
2. Washington State law in RCW 84.55.010 limits the annual growth of regular property taxes to the lesser of 1% or the
rate of inflation. With a vote of the majority of the voters within a taxing district, the 1% levy limitation can be “lifted”
and additional taxes may be levied
3. The City may voluntarily levy taxes below the legal limit.
Special levies approved by the voters are not subject to the above limitations.
Property taxes are recorded as receivable and offset by an unearned revenue account when levied. Since state law allows
for the sale of property for failure to pay taxes, no estimate of uncollectible taxes is made.
City of Auburn: 2014 CAFR Notes to the Financial Statements
72
NOTE 5 – INTERFUND ACTIVITY
Transfers are legally authorized transfers of resources from a fund receiving revenue to the fund through which resources
are to be expended. The principal purposes for interfund transfers include interfund subsidies, transfers into capital
project and debt service funds and transfers into internal service funds for interfund facility, information services and
equipment rental services. Interfund transfers for the year ended December 31, 2014 were as follows:
FundsTransfer InTransfer Out
Governmental funds:
General121,652$ 159,756$
General - Cumulative reserve- 2,416,387
Total general fund121,652 2,576,143
Special revenue funds:
Local street fund150,000 17,832
Arterial street fund1,275,931 17,831
Arterial Street Preservation- 17,832
Mitigation fees18,156 1,149,912
Total special revenue funds1,444,087 1,203,407
Debt service funds:
1998 Library GO283,678 -
2010 A&B Annex1,319,654 -
2010 C&D Local Rev234,749 -
LID guarantee393,114 -
Special assessments- 10,000
Total debt service funds2,231,195 10,000
Capital projects funds:
Capital Improvement Major13,665 1,213,898
Municipal Park Construction1,499,170 -
Total capital projects funds1,512,835 1,213,898
Proprietary funds:
Water- 110,271
Sewer- 105,803
Storm drainage80,410 172,031
Golf course- 30,097
Total proprietary funds80,410 418,202
Internal service funds:
Facilities- 662,675
Information Services256,822 -
Equipment rental444,324 7,000
Total internal service funds701,146 669,675
Total6,091,325$ 6,091,325$
Transfers
During 2014, the Golf Fund was reclassified from a proprietary fund and reported in the General Fund. The capital assets
and outstanding debt are now included in the governmental activities. The removal of capital assets and outstanding debt
from the enterprise fund was treated as a non‐operating expense of $4,957,001 in the proprietary fund statements. On the
government‐wide statement, the non‐operating expense was reclassified as transfers in and out between governmental
and business‐type activities for the same amount.
City of Auburn: 2014 CAFR Notes to the Financial Statements
73
Loans between funds are classified as interfund receivable and payable. Interfund Loans do not affect total fund equity.
Interfund Loans Balance Balance
Due From Due To 1/1/2014 New Loans Repayments 12/31/2014
Airport fund Capital improvements $ ‐ $ 200,000 $ ‐ $ 200,000
Total interfund loans $ ‐ $ 200,000 $ ‐ $ 200,000
All interfund loans are considered short‐term cash loans.
The purpose of the interfund loan to the Airport Fund is to cover the cost of the Auburn Municipal T Hangar Enclosure Project.
The repayment of this loan, plus interest at the Washington State investment pool rate, would be made over five years using new
revenue generated by the enclosed hangars.
City of Auburn: 2014 CAFR Notes to the Financial Statements
74
NOTE 6 – DUE FROM OTHER GOVERNMENTAL UNITS
As of December 31, 2014, the City had receivables due from other governmental units as follows:
General Fund:
Auburn Valley Humane Society102,548$
King County District Court667,789
King County Public Health - Rampart Grant3,588
King County -Real Estate Excise Taxes216,963
Pierce County - Real Estate Excise Taxes12,735
Muckleshoot Indian Tribe236,185
Auburn School District168,505
US Department of Justice55,372
WA Auto Theft Prevention Authority - Auto Theft Prevention Grant22,047
WA State Department of Ecology - Area-wide Redevelopment Plan35,384
WA State Military Department - EMPG Grant14,932
WA State Traffic Safety Commission - Seat belt / DUI enforcement 4,237
WA State Treasurer - Sales Taxes1,399,270
Total General Fund2,939,555
Arterial Street Fund:
WA State Transportation Improvement Board - Arterial Street Imp.175,991
Muckleshoot Indian Tribe9,894
WA Dept. of Transportation - Arterial street imp.177,665
Total Arterial Street Fund363,550
Drug Forfeiture Fund:
Pierce County Sheriff's Department -TNET11,259
Housing & Community Development:
U.S. Dept. of Housing - Community Development Block Grant124,194
Municipal Park Construction:
King Conservation District20,000
King County Flood Control District91,870
WA State Recreation & Conservation Office597,137
Total Municipal Park Construction709,007
General Government Capital Improvements:
Pierce County - Real Estate Excise Taxes27,837
Water Fund:
WA State Department of Commerce61,676
Storm Fund:
WA State Department of Ecology440,289
King Conservation District20,000
King County Flood Control District20,949
Total Storm Drainage Fund481,238
Solid Waste Fund:
Department of Ecology - ECPG Grant5,956
King County - Local hazardous waste management grant21,579
King County - Waste reduction and recycling grant36,264
Total Solid Waste fund63,799
Airport Fund
Federal Aviation Administration21,943
WA Department of Transportation -Aviation Division1,083
Total Airport fund23,026
Information Services Fund:
City of Black Diamond3,358
VRFA 2,024
Total Information Services fund5,382
Agency Fund:
City of Tukwila-Police15,000
City of Kent-Police15,000
Total Agency fund30,000
Total 4,840,523$
Reconciliation to government-wide statement of net position:
Total above due from other governmental units4,840,523
Amount due to fiduciary fund(30,000)
Total due from other governmental units,
4,810,523$ Government-wide statement of net position
Due from Other Governmental Units
City of Auburn: 2014 CAFR Notes to the Financial Statements
75
NOTE 7 – CAPITAL ASSETS AND DEPRECIATION
Capital asset activity for the year ended December 31, 2014 is as follows:
BalanceDecreases/Balance
1/1/14IncreasesAdjustments12/31/14
Governmental activities:
Capital assets, not being depreciated:
Land103,974,530$ 3,973,915$ -$ 107,948,445$
Construction in progress4,987,061 9,033,050 (5,002,403) 9,017,708
Total capital assets, not being depreciated108,961,591 13,006,965 (5,002,403) 116,966,153
Capital assets, being depreciated:
Buildings58,633,329 6,326,447 - 64,959,776
Improvements other than buildings18,459,369 3,531,119 - 21,990,488
Machinery and equipment21,640,593 3,077,850 (748,107) 23,970,336
Intangibles1,095,684 - - 1,095,684
Infrastructure328,475,210 3,382,363 (2,957) 331,854,616
Total capital assets being depreciated428,304,185 16,317,779 (751,064) 443,870,900
Less: accumulated depreciation for:
Buildings(12,699,587) (2,950,808) - (15,650,395)
Improvements other than buildings(11,252,294) (1,945,233) - (13,197,527)
Machinery and equipment(15,012,193) (2,658,554) 646,484 (17,024,263)
Intangibles(439,464) (154,563) - (594,027)
Infrastructure(118,131,493) (12,563,528) - (130,695,021)
Total accumulated depreciation(157,535,031) (20,272,686) 646,484 (177,161,233)
Total capital assets, being depreciated, net270,769,154 (3,954,907) (104,580) 266,709,667
Governmental activities capital assets, net379,730,745$ 9,052,058$ (5,106,983)$ 383,675,820$
Business-type activities:
Capital assets, not being depreciated:
Land14,505,063$ 261,979$ (2,490,855)$ 12,276,187$
Water Rights5,196,600 - - 5,196,600
Construction in progress16,314,775 8,797,538 (15,346,187) 9,766,126
Total capital assets, not being depreciated36,016,438 9,059,517 (17,837,042) 27,238,913
Capital assets, being depreciated:
Buildings11,396,634 63,905 (5,718,605) 5,741,934
Improvements other than buildings258,690,731 18,924,990 (3,023,053) 274,592,668
Machinery and equipment3,305,284 51,405 (902,085) 2,454,604
Total capital assets being depreciated273,392,649 19,040,300 (9,643,743) 282,789,206
Less: accumulated depreciation for:
Buildings(5,178,422) (121,179) 1,604,672 (3,694,929)
Improvements other than buildings(88,441,629) (6,174,801) 1,165,229 (93,451,201)
Machinery and equipment(2,886,077) (30,336) 761,354 (2,155,059)
Total accumulated depreciation(96,506,128) (6,326,316) 3,531,255 (99,301,189)
Total capital assets, being depreciated, net176,886,521 12,713,984 (6,112,488) 183,488,017
Business-type activities capital assets, net212,902,959$ 21,773,501$ (23,949,530)$ 210,726,930$
Schedule of Capital Asset Activity
City of Auburn: 2014 CAFR Notes to the Financial Statements
76
Depreciation/amortization expense was charged to functions/programs of the City as follows:
Governmental activities:
General government 1,033,349$
Public safety 366,179
Transportation 12,275,227
Culture and recreation 1,300,273
Capital assets held by the City's internal service funds are charged to the various
functions based on their usage of the assets1,336,578
Total depreciation/amortization expense - governmental activities16,311,606$
Business-type activities:
Water 2,410,604$
Sanitary sewer 1,908,420
Storm water 1,533,693
Solid waste 18,819
Airport 401,684
Cemetery 53,095
Total depreciation expense - business-type activities6,326,315$
The 2014 total interest cost incurred for business‐type activities was $1,739,229 of which $1,082,925 was charged to expense
and $656,304 capitalized. During 2014, the capital assets were transferred from the Golf Fund and are now included in the
governmental activities. The removal of capital assets from the enterprise fund was treated as a capital contribution.
NOTE 8 – CAPITAL LEASE OBLIGATION
The City has the following capital lease:
One January 1, 2007 the City entered into a capital lease agreement for the Auburn Avenue Theater facility for a 15 year
term. The intent is for the City’s Parks, Arts and Recreation department to offer performances to the public, as well as
make the facility available for short‐term rentals.
Lease Payable
Theater
201577,998$
201677,998
201777,998
201877,998
201977,998
2020-2021155,854
Total minimum lease payments545,844
Less: Amounts representing interest(110,776)
Present value of future minimum lease payments435,068$
Schedule of Future Minimum Lease Payments
As of December 31, 2014, the gross value of the Auburn Theater facility acquired under the capital lease is $695,504.
Monthly lease payments of $6,500 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 6.68 percent.
City of Auburn: 2014 CAFR Notes to the Financial Statements
77
NOTE 9 – LONG‐TERM LIABILITIES
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.
The outstanding bonds which were issued to fund improvements to the Auburn Golf Course were transferred from the
Golf Fund and are now included in the governmental activities. The removal of debt from the enterprise fund was
treated as a capital contribution.
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. The outstanding bonds
were transferred from the Golf Fund and are now included in the governmental activities. The removal of debt from
the enterprise fund was treated as a capital contribution.
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, 2014 is $1,015,000.
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 eight
outstanding loans with a remaining total balance of $11,808,711. Six 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 & PWTF 2013). The other two loans are for
arterial street improvements and are being repaid from arterial street fund revenues over a 20‐year period that began in
2009 upon project completion (PWTF 2008) and over a 29‐year period that began in 2013 upon project completion (PWTF
2012).
City of Auburn: 2014 CAFR Notes to the Financial Statements
78
Compensated Absences are paid by those funds that have employees. These are mostly payable by the General fund and
enterprise funds.
The following schedules summarize the long‐term debt transactions of the City for the year ended December 31, 2014. 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.
Employee
Leave Benefits
YearPrincipalInterestPrincipalInterestPrincipalInterestPrincipal Principal(1)Interest
20152,235,150 3,310,406 50,462 27,536 2,428,469 1,584,818 2,003,523 6,717,604 4,922,760
20162,099,950 3,219,326 53,938 24,060 2,473,469 1,534,878 45,989 4,673,346 4,778,264
20172,189,400 3,127,140 57,653 20,345 2,518,469 1,481,621 45,989 4,811,511 4,629,106
20182,266,100 3,027,605 61,624 16,374 2,568,469 1,427,652 45,989 4,942,182 4,471,631
20192,069,350 2,932,873 65,869 12,129 2,623,469 1,366,533 45,989 4,804,677 4,311,535
2020-202410,535,550 13,524,524 145,522 10,332 12,402,017 5,637,851 229,945 23,313,034 19,172,707
2025-202911,030,750 11,054,711 - - 12,573,644 2,997,388 45,987 23,650,381 14,052,099
2030-203412,994,450 8,034,403 - - 4,831,754 333,331 - 17,826,204 8,367,734
2035-203911,752,100 3,802,920 - - 584,965 14,625 - 12,337,065 3,817,545
2040-2044- - - - 233,986 1,755 - 233,986 1,755
Totals57,172,800$ 52,033,908$ 435,068$ 110,776$ 43,238,711$ 16,380,452$ 2,463,411$ 103,309,990$ 68,525,136$
(1)103,309,990$ Principal debt service requirements to maturity
6,211,464Other Post Employment Benefits
1,578,439Premium
111,099,893$ Long Term Liabilities 12/31/2014
Obligation BondsObligationBonds/LoansLong-Term Debt
DEBT SERVICE REQUIREMENT TO MATURITY
GeneralCapital LeaseUtilityTotal
General
Obligation (1)Utility
Employee
Leave Benefit
Other Post
Employment
BenefitsPremium
Due To Other
Governments Total
Long-term debt payable 12/31/1338,080,584$ 41,023,090$ 2,544,234$ 4,968,040$ 1,714,374$ 25,966,700$ 114,297,022$
Added3,509,902 129,115 2,117,305 2,036,710 57,139 - 7,850,171
Retired(4,836,245) (2,197,667) (2,198,128) (793,286) (193,074) (828,900) (11,047,300)
Long-term debt payable 12/31/1436,754,241$ 38,954,538$ 2,463,411$ 6,211,464$ 1,578,439$ 25,137,800$ 111,099,893$
(1) Includes capital leases
CHANGES IN LONG-TERM LIABILITES SUMMARY
City of Auburn: 2014 CAFR Notes to the Financial Statements
79
InterestMaturityOriginalPrincipalBalanceBalanceDue Within
Issue Name Rates Date Amount(2) Installments 12/31/13 Additions Reductions 12/31/14One Year
GOVERNMENTAL DEBT
General Obligation Bonds:
GO bond 2006-Golf (1)(3)4.25-5.00%12/1/20252,784,536$ $5,000 - $395,000-$ 2,784,536$ -$ 2,784,536$ 4,251$
GO bond 2006 taxable-Golf (3)5.40-5.52%12/1/20151,885,000 $45,000 - $245,000- 485,000 (240,000) 245,000 245,000
LTGO 2010A (1)2.00-4.50%12/1/20184,385,000 $235,000 - $720,0001,760,000 - (745,000) 1,015,000 235,000
LTGO 2010B (1)3.27-6.24%12/1/203920,365,000 $535,000 - $1,240,00020,365,000 - - 20,365,000 535,000
LTGO 2010C (1)2.00-4.00%12/1/2014920,000 $105,000 - $215,000215,000 - (215,000) - -
LTGO 2010D (1)3.27-6.19%12/1/20346,320,000 $220,000 - $445,0006,320,000 - - 6,320,000 220,000
Total General Obligation Bonds 36,659,536 28,660,000 3,269,536 (1,200,000) 30,729,536 1,239,251
Capital Lease:
Auburn Avenue Theater 6.68%12/31/2021695,504 $4,078 - $6,429480,771 - (45,703) 435,068 50,462
Employee Leave Benefits:
Compensated absences 1,842,826 1,626,400 (1,576,966) 1,892,260 1,538,998
Other Post Employment Benefits:
LEOFF 1 4,968,040 2,036,710 (793,286) 6,211,464 -
Public Works Trust Fund Loans:
PWTF 2008 0.50%7/1/20281,527,273 $80,3831,205,742 - (80,383) 1,125,359 80,383
PWTF 2012 0.50%6/1/20413,284,857 $116,9933,034,071 240,366 (115,623) 3,158,814 116,993
Total Public Works Trust Fund Loans 4,812,130 4,239,813 240,366 (196,006) 4,284,173 197,376
Premium Related to Debt 154,372 57,139 (42,629) 168,882 -
Total Governmental 42,167,170$ 40,345,822$ 7,230,151$ (3,854,590)$ 43,721,383$ 3,026,087$
BUSINESS-TYPE DEBT
General Obligation Bonds
GO refunding bond 2005 (1)4.00-4.50%12/1/20191,375,000$ $10,000 - $190,000940,000$ -$ (125,000)$ 815,000$ 135,000$
GO bond 2006-Golf/Cemetery (1)(3)4.25-5.00%12/1/20253,275,000 $5,000 - $395,0003,275,000 - (2,784,536) 490,464 749
GO bond 2006 taxable-Golf (3)5.40-5.52%12/1/20151,885,000 $45,000 - $245,000485,000 - (485,000) - -
Total General Obligation Bonds 6,535,000 4,700,000 - (3,394,536) 1,305,464 135,749
Revenue Bonds:
Utility sys refunding bonds 2005 (1)3.00-4.75%11/1/20162,765,000 $45,000 - $355,0001,020,000 - (325,000) 695,000 340,000
Utility sys bonds 2010 (1)3.00-6.40%12/1/203021,295,000 $575,000 - $1,720,00020,720,000 - (590,000) 20,130,000 605,000
Utility sys bonds 2013 (1)0.38-4.00%12/1/203211,415,000 $335,000 - $785,00011,080,000 - (475,000) 10,605,000 475,000
Total Revenue Bonds 35,475,000 32,820,000 - (1,390,000) 31,430,000 1,420,000
Employee Leave Benefits:
Compensated absences 701,408 490,905 (621,162) 571,151 464,525
Public Works Trust Fund Loans:
PWTF 1999 1.00%7/1/20193,465,000 $182,3681,094,211 - (182,369) 911,842 182,368
PWTF 2001 0.50%7/1/20214,290,405 $227,0861,816,685 - (227,086) 1,589,599 227,086
PWTF 2002 1.00%7/1/2022641,250 $26,114235,030 - (26,114) 208,916 26,114
PWTF 2004 0.50%7/1/20242,049,036 $107,8441,186,284 - (107,844) 1,078,440 107,844
PWTF 2006 0.50%7/1/20263,325,000 $180,4182,345,433 - (180,418) 2,165,015 180,418
PWTF 2013 2.00%6/1/20321,654,561 $87,2631,525,447 129,115 (83,836) 1,570,726 87,263
Total Public Works Trust Fund Loans 15,425,252 8,203,090 129,115 (807,667) 7,524,538 811,093
Premium Related to Debt 1,560,002 - (150,445) 1,409,557 -
Total Proprietary 57,435,252$ 47,984,500$ 620,020$ (6,363,810)$ 42,240,710$ 2,831,367$
Total All Funds 99,602,422$ 88,330,322$ 7,850,171$ (10,218,400)$ 85,962,093$ 5,857,454$
(1) Subject to federal arbitrage compliance rules.(2) The original amount is the amount authorized and issued with exception of the Utility System Bonds 2013 in which the authorized amount was $13,000,000 and the issued amount
was $11,415,000.(3) The outstanding bonds which were issued to fund improvements at the Auburn Golf Course were transferred from the Golf Fund and are now included in the governmental
activities.
CHANGES IN LONG-TERM LIABILITIES
Schedule of Authorized, Issued and Outstanding Bonds (2)
City of Auburn: 2014 CAFR Notes to the Financial Statements
80
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 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 paid from the General fund.
Revenue Bond Debt Service Coverage
The required debt service coverage for the 2013 utility revenue bonds, 2010 utility revenue bonds and the 2005 utility
revenue refunding bonds is 1.25. Debt service coverage for 2014 was 3.0. The ratio indicates the direction and degree to
which the revenue stream exists to meet the current debt burden. The ratio is calculated by dividing the net revenue
available by debt service requirements.
The restricted rate stabilization fund for the utility revenue bonds was established to minimize the effect on rates of
revenue fluctuations between years. By transferring cash into this stabilization fund, adjusted net revenue available for
debt service, as defined, would be decreased by the amount of the transfer. Conversely, transfers out of the account
would increase adjusted net revenue available for debt service.
Estimated Arbitrage Rebate
The Federal Tax Reform Act of 1986 requires issuers of tax‐exempt debt of over $5 million to make payments to the United
States Treasury of investment interest received at yields that exceed the issuer’s tax‐exempt borrowing rates. Payments
of arbitrage rebate amounts due under these regulations must be made to the U.S. Treasury every five years. The City’s
InterestMaturityOriginalPrincipalBalanceBalanceDue Within
Issue Name Rates DateAmount Installments 12/31/13 Additions Reductions 12/31/14One Year
GOVERNMENTAL DEBT:
General Obligation Bonds:
Valley Communication Public Dev Auth 3.00-4.00%12/1/20151,065,000$ $21,000 - $220,000432,000$ -$ (212,000)$ 220,000$ 220,000$
SCORE Public Development Authority 3.00-6.62%1/1/203926,732,850 $593,650 - $1,601,15025,534,700 - (616,900) 24,917,800 640,150
Total General Obligation Bonds
Due Other Governments 27,797,850$ 25,966,700$ -$ (828,900)$ 25,137,800$ 860,150$
CHANGES IN LONG-TERM LIABILITIES DUE TO OTHER GOVERNMENTS
EnterpriseGovernmentalFundsFunds12/31/14
Liabilities payable from restricted assets:
Revenue bonds2,922,900$ -$ 2,922,900$
Long-term bonds payable:
General obligation bonds1,305,464 30,729,536 32,035,000
Capital lease- 435,068 435,068
Revenue bonds28,507,100 - 28,507,100
Public Works Trust Fund loans7,524,538 4,284,173 11,808,711
Due to Other Governments- 25,137,800 25,137,800
Employee leave benefits571,151 1,892,260 2,463,411 Other Post Employment Benefits- 6,211,464 6,211,464 Premium1,409,557 168,882 1,578,439 Total long-term debt42,240,710$ 68,859,183$ 111,099,893$
LONG-TERM LIABILITIES RECONCILIATION
City of Auburn: 2014 CAFR Notes to the Financial Statements
81
estimated rebatable arbitrage amount as of December 31, 2014 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; employees of district and
municipal courts; and employees of local governments. Membership also includes higher education employees not
participating in higher education retirement programs. Approximately 49 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 exercised 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 Plan 3. The option
must be exercised within 90 days of employment. Employees who fail to choose within 90 days default to Plan 3.
PERS is comprised of and reported as three separate plans for accounting purposes: Plan 1, Plan 2/3, and Plan 3. Plan 1
accounts for the defined benefits of Plan 1 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 may legally be used to pay the
defined benefits of any of the Plan 2 or 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 2013, the rate was five and one‐half percent compounded
quarterly. Members in PERS Plan 1 and Plan 2 can elect to withdraw total employee contributions and interest thereon, in
lieu of any retirement benefit, upon separation from PERS‐covered employment. PERS Plan 1 members are vested after
the completion of five years of eligible service.
PERS Plan 1 members are eligible for retirement from active status at any age with at least 30 years of service, at age 55
with 25 years of service, or at age 60 with at least 5 years of service. Plan 1 members retiring from inactive status prior to
the age of 65 may receive actuarially reduced benefits.
City of Auburn: 2014 CAFR Notes to the Financial Statements
82
The monthly benefit is 2 percent of the average final compensation (AFC) per year of service, but the benefit may not
exceed 60 percent of the AFC. The AFC is the monthly average of the 24 consecutive highest‐paid service credit months.
PERS Plan 1 retirement benefits are actuarially reduced to reflect the choice, if made, of a survivor option.
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 3 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 benefit 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
benefit 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 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 the 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.
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, if hired prior to May 1, 2013:
With a benefit that is reduced by 3 percent for each year before age 65; or
With a benefit that has a smaller (or no) reduction (depending on age) that imposes stricter return‐to‐work rules.
PERS Plan 2 members hired on or after May 1, 2013 have the option to retire early by accepting a reduction of 5 percent for
each year of retirement before age 65. This option is available only to those who are age 55 or older and have at least 30
years of service.
PERS Plan 2 retirement benefits are actuarially reduced to reflect the choice, if made, of a survivor option.
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 member choice.
Members who do not choose a contribution rate default to a 5 percent rate. 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 self‐directed
investments are paid by members. Absent a member’s self‐direction, PERS Plan 3 contributions are invested in the
Retirement Strategy Fund that assumes the member will retire at age 65.
City of Auburn: 2014 CAFR Notes to the Financial Statements
83
For DRS’ Fiscal Year 2013, PERS Plan 3 employee contributions were $99.0 million, and plan refunds paid out were $69.4
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 their plan after ten years of
service; or after five years of service, if twelve months of that service are earned after age 44; or after five service credit
years earned in PERS Plan 2 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, and were hired before May 1, 2013, 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.
If they have 30 service credit years, are at least 55 years old, and were hired after May 1, 2013, they have the option
to retire early by accepting a reduction of 5 percent for each year before age 65.
PERS Plan 3 benefits are 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. 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 members meeting specific eligibility requirements have options available to enhance their retirement benefits. Some
of these options are available to their survivors.
A one‐time duty‐related death benefit is provided to the beneficiary or the estate of a PERS member who dies 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 the member’s covered employment, if found eligible by the Department of Labor
and Industries.
From January 1, 2007 through December 31, 2007, judicial members of PERS were given the choice to elect participation in
the Judicial Benefit Multiplier (JBM) Program enacted in 2006. Justices and judges in PERS Plan 1 and Plan 2 were able to
make an 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 AFC. Judges in PERS Plan 3 could elect a 1.6 percent of pay per
year of service benefit, capped at 37.5 percent of AFC.
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.
City of Auburn: 2014 CAFR Notes to the Financial Statements
84
There are 1,176 participating employers in PERS. Membership in PERS consisted of the following as of the latest actuarial
valuation date for the plans of June 30, 2013:
Retirees and Beneficiaries Receiving Benefits 85,328
Terminated Plan Members Entitled to but not yet Receiving Benefits 31,047
Active Plan Members Vested 150,706
Active Plan Members Non‐vested 101,191
Total 368,272
Funding Policy
Each biennium, the state Pension Funding Council adopts PERS Plan 1 employer contribution rates, PERS Plan 2 employer
and employee contribution rates, and PERS 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.
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.
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, 2014, are as
follows:
Members not participating in JBM:
* The employer rates include the employer administrative expense fee currently set at 0.18%.
** The employer rate for state elected officials is 13.73% for Plan 1 and 9.21% 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 4.92% 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:
* The employer rates include the employer administrative expense fee currently set at 0.18%.
** Plan 3 defined benefit portion only.
*** Minimum rate.
PERS Plan 1PERS Plan 2PERS Plan 3
Employer*9.21%**9.21%**9.21%***
Employee6.00%****4.92%*********
PERS Plan 1PERS Plan 2PERS Plan 3
Employer-State Agency*11.71%11.71%11.71%**
Employer-Local Gov't Units*9.21%9.21%9.21%**
Employee-State Agency9.76%9.80%7.5%***
Employee-Local Gov't Units12.26%12.30%7.50%***
City of Auburn: 2014 CAFR Notes to the Financial Statements
85
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:
The employer contribution rate for the City was 7.21% in 2012 and 9.21% in 2013 and 2014.
Law Enforcement Officers’ and Fire Fighters’ Retirement System (LEOFF) Plans 1 and 2.
Plan Description
LEOFF was established in 1970 by the Legislature. Membership 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 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.
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.
LEOFF 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 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 2013, 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, in lieu of any retirement benefit, upon separation from
LEOFF‐covered employment.
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 ServicePercent 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 10 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 there is an eligible spouse, 50 percent of the FAS, plus 5 percent of the FAS for each eligible
surviving child, with a limitation on the combined benefit of 60 percent of the FAS; or (2) If there is no eligible spouse,
PERS Plan 1PERS Plan 2 PERS Plan 3
201431,068$ 1,560,156$ 360,022$
201334,563 1,371,134 313,045
201229,077 1,182,550 268,187
City of Auburn: 2014 CAFR Notes to the Financial Statements
86
eligible children receive 30 percent of the FAS for the first child plus 10 percent for each additional child, subject to a 60
percent limitation of the FAS, divided equally.
A one‐time duty‐related death benefit is provided to the beneficiary or the estate of a LEOFF Plan 1 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.
The LEOFF Plan 1 disability benefit 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 benefit or
service retirement benefit.
LEOFF Plan 2 members are vested after the completion of five years of eligible service.
Plan 2 members are eligible for retirement at the age of 53 with five years of service, or at age 50 with 20 years of service.
Plan 2 members receive a benefit of 2 percent of the FAS per year of service (the FAS is based on the highest consecutive
60 months), actuarially reduced to reflect the choice of a survivor option. Members who retire prior to the age of 53
receive reduced benefits. 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. Otherwise, the benefits are actuarially reduced for each year prior to age 53. A cost‐of‐living
allowance is granted (based on the Consumer Price Index), capped at 3 percent annually.
LEOFF Plan 2 provides disability benefits. There is no minimum amount of service credit required for eligibility. The Plan 2
benefit amount is 2 percent of the FAS for each year of service. Benefits are reduced to reflect the choice of survivor
option and for each year that the member’s age is less than 53, unless the disability is duty‐related. 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 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 catastrophically 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 benefit 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.
A one‐time duty‐related death benefit is provided to the beneficiary or the estate of a LEOFF Plan 2 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.
Benefits to eligible surviving spouses and dependent children of LEOFF Plan 2 members killed in the course of employment
include the payment of eligible health care insurance premiums.
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.
LEOFF members meeting specific eligibility requirements have options available to enhance their retirement benefits.
Some of these options are available to their survivors.
City of Auburn: 2014 CAFR Notes to the Financial Statements
87
There are 374 participating employers in LEOFF. Membership in LEOFF consisted of the following as of the latest actuarial
valuation date for the plans of June 30, 2013:
Retirees and Beneficiaries Receiving Benefits 10,511
Terminated Plan Members Entitled to but not yet Receiving Benefits 699
Active Plan Members Vested 16,830
Active Plan Members Non‐vested 1,600
Total 29,640
Funding Policy
Employer and employee contribution rates are developed by the Office of the State Actuary to fully fund the plans.
Starting on July 1, 2000, Plan 1 employers and employees contribute zero percent, as long as the plan remains fully funded.
Plan 2 employers and employees are required to pay at the level adopted by the LEOFF Plan 2 Retirement Board.
The Legislature, by means of a special funding arrangement, appropriates money from the state General Fund to
supplement the current service liability and fund the prior service costs of Plan 2 in accordance with the recommendations
of the Pension Funding Council and the LEOFF Plan 2 Retirement Board. This special funding situation is not mandated by
the state constitution and could be changed by statute. For DRS’ Fiscal Year 2014, the state contributed $55.6 million to
LEOFF Plan 2.
The methods used to determine the contribution requirements are established under state statute in accordance with
Chapters 41.26 and 41.45 RCW.
The required contribution rates expressed as a percentage of current‐year covered payroll, as of December 31, 2014, are as
follows:
* The employer rates include the employer administrative expense fee currently set at 0.18%.
Both the City of Auburn and the employees made the required contributions. The City’s required contributions for the
years ended December 31 were:
Public Safety Employees’ Retirement System (PSERS) Plan 2
Plan Description
PSERS was created by the 2004 Legislature and became effective July 1, 2006. PSERS retirement benefit
provisions have been established by Chapter 41.37 RCW and may be amended only by the State Legislature.
PSERS is a cost‐sharing multiple‐employer retirement system comprised of a single defined benefit plan, PSERS
Plan 2.
LEOFF Plan 1 LEOFF Plan 2
Employer*0.18%5.23%
Employee0.00%8.41%
StateN/A3.36%
LEOFF Plan 1 LEOFF Plan 2
2014-$ 531,166$
2013- 491,540
2012- 467,819
City of Auburn: 2014 CAFR Notes to the Financial Statements
88
PSERS membership includes:
PERS 2 or 3 employees hired by a covered employer before July 1, 2006, who met at least one of the
PSERS eligibility criteria and elected membership during the period of July 1, 2006 to September 30,
2006; and
Employees, hired on or after July 1, 2006 by a covered employer, that meet at least one of the PSERS
eligibility criteria.
Covered employers include:
State of Washington agencies: Department of Corrections, Department of Natural Resources, Gambling
Commission, Liquor Control Board, Parks and Recreation Commission, and Washington State Patrol;
Washington State counties;
Washington State cities except for Seattle, Spokane and Tacoma; and
Correctional 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 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; or
Have primary responsibility to ensure the custody and security of incarcerated or probationary
individuals; or
Function as a limited authority Washington peace officer, as defined in RCW 10.93.020; or
Have primary responsibility to supervise eligible members who meet the above criteria.
PSERS 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 2014, the rate was five and one‐half percent compounded quarterly. Members
in PSERS Plan 2 can elect to withdraw total employee contributions and interest thereon, in lieu of any
retirement benefit, upon separation from PSERS‐covered employment.
PSERS Plan 2 members are vested after completing five years of eligible service.
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
City of Auburn: 2014 CAFR Notes to the Financial Statements
89
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.
PSERS members meeting specific eligibility requirements have options available to enhance their retirement
benefits. Some of these options are available to their survivors.
A one‐time duty‐related death benefit is provided to the beneficiary or the estate 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 75 participating employers in PSERS. Membership in PSERS consisted of the following as of the latest
actuarial valuation date for the plan of June 30, 2013:
Retirees and Beneficiaries Receiving Benefits 43
Terminated Plan Members Entitled to but not yet Receiving Benefits 119
Active Plan Members Vested 4,513
Active Plan Members Non‐vested 1,383
Total 6,058
Funding Policy
Each biennium, the state Pension Funding Council adopts 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,
2014, are as follows:
*The employer rate includes an employer administrative expense fee of 0.18%.
The City of Auburn has not had any employees enrolled in the PSERS Plan since 2011, thus no contributions have been made
to the plan since 2010.
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.
PSERS Plan 2
Employer*10.54%
Employee6.36%
City of Auburn: 2014 CAFR Notes to the Financial Statements
90
The City has determined that GASB Statement No. 67 – Financial Reporting for Pension Plans; an amendment of GASB
Statement No. 25 does not apply to the City’s single‐employer Fire Relief and Pension Fund as it does not meet the criteria
applicability set by the statement as the contributions to that fund are not irrevocable. Plan assets may be used for to
cover medical expenses which are outside of the scope of the pension plan benefits. Therefore, the Fire Relief and Pension
Fund has been presented in conformance with GASB Statement No. 25 and Statement No. 50.
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 2013, $70,035 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 13 eligible, of which 11 are receiving benefits.
FiscalActualAnnual RequiredPercentageAnnual PercentageNet
YearEmployerContributionof ARC Pension Costof APCPension (Asset)
EndingContributions*(ARC)Contributed(APC)ContributedObligation
December 31, 200345,664 - N/A1,137 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/A16,652
December 31, 200717,920 (5,048) N/A(5,420) N/A(6,688)
December 31, 200812,167 (5,048) N/A(4,885) N/A(23,740)
December 31, 200937,232 (78,233) N/A(77,503) N/A(138,475)
December 31, 201049,049 (78,233) N/A(73,634) N/A(261,158)
December 31, 201143,474 21,469 202%30,859 140.88%(273,773)
December 31, 201248,380 21,469 225%32,156 150.00%(289,997)
December 31, 201352,326 70,351 74%83,024 63.00%(259,299)
December 31, 2014297,177 70,351 422%82,715 359.00%(473,761)
*Employer Contributions for pensions are total contributions to the Fund net of disbursement from the Fund for
medical expenses under RCW 41.26.150 and administrative expenses.
GASB STATEMENT No. 27GASB STATEMENT No. 25
SCHEDULE OF EMPLOYER CONTRIBUTIONSTHREE YEAR TREND INFORMATION
City of Auburn: 2014 CAFR Notes to the Financial Statements
91
The information presented in the preceding required schedules was determined as part of the actuarial valuations at the
date indicated.
Inflation rate:2.25%
Investment rate of return:3.50%
Projected salary increases:3.25%
Cost-of living adjustments:2.50%
Actuarial Assumptions
FiscalARC atAmort.AnnualTotal
YearEnd ofInterest onARCFactorPension Cost Employer Change inNPO (Asset)
Ending Year (1)NPO (2)Adjustment*(APC)ContributionsNPO Balance (3)
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)
12/31/201121,469 (10,446) (19,836) 13.17%30,859 43,474 (12,615) (273,773)
12/31/201221,469 (10,951) (21,638) 12.65%32,156 48,380 (16,224) (289,997)
12/31/201370,351 (10,875) (23,548) 12.32%83,024 52,326 30,698 (259,299)
12/31/201470,351 (9,724) (22,088) 11.74%82,715 297,177 (214,462) (473,761)
(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, 2003-2004; 6% 2005-2006; 5% 2007-2008; 4% 2011-2012,
3.75% 2013, 3.5% 2014
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
Valuation date:
Actuarial cost method:
Amortization method:
Remaining amortization period:
Asset valuation method:
Actuarial Valuation Info:
Fair market value
January 1, 2015
Entry age normal
Level dollar amount
14 years
30-year, closed as of January 1, 1999
City of Auburn: 2014 CAFR Notes to the Financial Statements
92
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, 2014, there was 1 active member and 56 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.
Fiscal Year Ending
Annual Required Contribution (ARC)12/31/201212/31/201312/31/2014
1. Annual Normal Costs at beginning of year101,456$ 101,456$ 45,656$
2. Amortization of UAAL at beginning of year2,011,425 2,011,425 2,168,028
3. Interest to end of year84,515 84,515 71,945
4. ARC at end of year2,197,396$ 2,197,396$ 2,285,629$
5. Interest on Net OPEB Obligation123,847 162,738 161,461
6. Adjustment to ARC244,712 335,724 410,380
7. Annual OPEB Cost2,076,531$ 2,024,410$ 2,036,710$
8. Employer Contributions1,104,259 1,124,809 793,286
9. Change in Net OPEB Obligation972,272 899,601 1,243,424
10. Net OPEB Obligation at beginning of year3,096,167 4,068,439 4,968,040
11. Net OPEB Obligation at end of year4,068,439$ 4,968,040$ 6,211,464$
City of Auburn: 2014 CAFR Notes to the Financial Statements
93
The net OPEB obligation of $6,211,464 is included as a non‐current liability on the Statement of Net Position.
The City’s annual OPEB cost, the percentage of OPEB costs contributed to the plan, and the net OPEB obligation for 2014,
2013 and 2012 are as follows:
Contributions as a
AnnualPercentage ofNet OPEB
Fiscal Year EndingOPEB CostAnnual OPEB CostObligation
December 31, 20142,036,710$ 39%6,211,464$
December 31, 20132,024,410 56%4,968,040
December 31, 20122,076,531 53%4,068,439
Funded Status and Funding Progress
As of January 1, 2014, the most recent actuarial valuation date, the plan was 0% funded. The accrued liability for benefits
was $26.2 million, and the actuarial value of assets was $0, resulting in a UAAL of $26.2 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, 2014 actuarial valuation, the entry age normal actuarial cost method was used. The actuarial assumptions
used included a 3.25% discount rate, which is based upon the long‐term investment yield on the investments that are
expected to be used to finance the payment of benefits. The medical (healthcare) trend rate of 6.9% for pre‐65 retirees
and 6.0% for post‐65 retirees is assumed and the inflation rate includes the 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, 2014 was 15 years.
NOTE 12 – ASSOCIATION OF WASHINGTON CITIES EMPLOYEE BENEFIT TRUST (“Trust”)
Trust Description
The City is a member of the Association of Washington Cities Employee Benefit Trust Health Care Program (AWC Trust
HCP). Chapter 48.62 RCW provides that two or more local government entities may, by Interlocal agreement under
Chapter 39.34 RCW, form together or join a pool or organization for the joint purchasing of insurance, and/or joint self‐
insurance, to the same extent that they may individually purchase insurance, or self‐insure.
City of Auburn: 2014 CAFR Notes to the Financial Statements
94
An agreement to form a pooling arrangement was made pursuant to the provisions of Chapter 39.34 RCW, the Interlocal
Cooperation Act. The AWC Trust HCP was formed on January 1, 2014 when participating cities, towns, and non‐city entities
of the AWC Employee Benefit Trust in the State of Washington joined together by signing an Interlocal Governmental
Agreement to jointly self‐insure certain health benefit plans and programs for participating employees, their covered
dependents and other beneficiaries through a designated account within the Trust.
As of December 31, 2014, 263 cities/towns/non‐city entities participate in the AWC Trust HCP.
The AWC Trust HCP allows members to establish a program of joint insurance and provides health and welfare services to
all participating members. The AWC Trust HCP pools claims without regard to individual member experience. The pool is
actuarially rated each year with the assumption of projected claims run‐out for all current members. The AWC Trust HCP
includes medical insurance through Regence BlueShield and Asuris Northwest Health, dental insurance through Delta
Dental of Washington, and vision insurance through Vision Service Plan. Eligible members are cities and towns within the
state of Washington. Non‐City Entities (public agency, public corporation, intergovernmental agency, or political
subdivision within the state of Washington) are eligible to apply for coverage into the AWC Trust HCP, submitting
application to the Board of Trustees for review as required in the Trust Agreement.
Participating employers pay monthly premiums to the AWC Trust HCP. The AWC Trust HCP is responsible for payment of all
covered claims. The AWC Trust HCP purchases stop loss insurance for Regence/Asuris plans at an Individual Stop Loss (ISL)
of $1.5 million through Life Map, and Group Health ISL at $750,000 through Sun Life. The aggregate policy is for 200% of
expected medical claims.
Participating employers contract to remain in the AWC HCP for a minimum of three years. Participating employers with
over 250 employees must provide written notice of termination of all coverage a minimum of 12 months in advance of the
termination date, and participating employers with under 250 employees must provide written notice of termination of all
coverage a minimum of 6 months in advance of termination date. When all coverage is being terminated, termination will
only occur on December 31. Participating employers terminating a group or line of coverage must notify the HCP a
minimum of 60 days prior to termination. A participating employer’s termination will not obligate that member to past
debts, or further contributions to the HCP. Similarly, the terminating member forfeits all rights and interest to the HCP
Account.
The operations of the Health Care Program are managed by the Board of Trustees or its delegates. The Board of Trustees is
comprised of four regionally elected officials from Trust member cities or towns, the Employee Benefit Advisory
Committee Chair and Vice Chair, and the AWC Board of Directors President and Vice President. The Trustees or its
appointed delegates review and analyze Health Care Program related matters and make operational decisions regarding
premium contributions, reserves, plan options and benefits in compliance with Chapter 48.62 RCW. The Board of Trustees
has decision authority consistent with the Trust Agreement, Health Care Program policies, Chapter 48.62 RCW and Chapter
200‐110‐WAC.
The accounting records of the Trust HCP are maintained in accordance with methods prescribed by the State Auditor’s
office under the authority of Chapter 43.09 RCW. The Trust HCP also follows applicable accounting standards established
by the Governmental Accounting Standards Board (“GASB”). Year‐end financial reporting is done on an accrual basis and
submitted to the Office of the State Auditor as required by Chapter 200‐110 WAC. The audit report for the AWC Trust HCP is
available from the Washington State Auditor’s office
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 $830.01 per month for non‐Medicare enrolled retiree‐only
coverage, $1,667.27 for non‐Medicare enrolled retiree and spouse coverage, $1,280.56 for Medicare enrolled retiree and
City of Auburn: 2014 CAFR Notes to the Financial Statements
95
non‐Medicare enrolled spouse (or non‐Medicare enrolled retiree and Medicare‐enrolled spouse) and $899.43 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, 2014, the City had the following contractual obligations on construction projects:
NOTE 14 – CEMETERY ENDOWED CARE FUND
The City maintains one permanent fund known as the cemetery endowed care fund. Paid into this fund is 10% of the base,
pre‐tax sales price of each grave, niche or crypt. This fund is irreducible in principal and no part of the income of this fund
shall ever be used for purposes other than those specified upon the creation of the fund.
RCW 68.44.020 restricts the use of endowment net appreciation to endowment care “stipulated in the instrument by
which the fund was established”. For the City, the instrument that established the fund is Auburn City Code section
3.04.080, and section 3.040.120 governs the use of the fund.
ACC 3.04.120 restricts net interest or income from investments to the care of the lots and in the improvement or
embellishment of the cemetery or the erection or preservation of any buildings or structures, fences or walks, or for the
repair, preservation, erection or renewal of any tomb, monument, grave, stone, fence, railing or other erection in or
around the cemetery. The funds may also be used for planting and cultivating trees, shrubs, flowers or plants in or around
the cemetery. All expenditures of income from the fund must first be authorized by the City Council.
For 2014, of the $2,252 net appreciation on investments, all was available for expenditures. Amounts that are available for
expenditure are reflected as assigned fund balance.
NOTE 15 – JOINT VENTURES / RELATED PARTY
Valley Communications Center
The “Valley Communications Center” was established August 20, 1976, when an Interlocal Agreement was entered into by
four participating municipal corporations: Renton, Kent, Auburn and Tukwila. The provisions and terms of the “Interlocal
Cooperation Act”, pursuant to RCW 39.34, sanction the agreement. The initial duration of the agreement was five years
and thereafter is automatically extended for consecutive two‐year periods, unless terminated by one or more of the
participating cities. Any such termination must be in writing and served upon the other cities on or before July 1 in any one
year and such termination shall then become effective on the last day of such year.
SCHEDULE OF OUTSTANDING CONSTRUCTION OBLIGATIONS
As of December 31, 2014
Amount Outstanding
Traffic projects83,588$
Street projects522,320
Utilities projects2,690,007
Other projects156,140
Total commitments3,452,055$
City of Auburn: 2014 CAFR Notes to the Financial Statements
96
On August 4, 1999 the Administration Board of Valley Communications Center voted to include the City of Federal Way as a
full participating member city as of January 1, 2000. The five participating municipal corporations that include the cities of
Renton, Kent, Auburn, Tukwila, and Federal Way on April 17, 2000 entered into a new Interlocal Agreement, pursuant to
RCW 39.34, et seq. This agreement reaffirmed Valley Communications Center as a governmental administration agency
pursuant to RCW 39.34.030 (3) (b).
The purpose of the joint operation, hereafter referred to as Valley Com, is to provide improved consolidated emergency
communications (dispatch) services for police, fire and medical aid to the five participating cities and to the several
subscribing agencies, which include King County Fire Districts #2, #20, #40, #43, #44, #47, Black Diamond Fire Department,
Vashon Island Fire Department, City of Pacific Police and Fire Departments, City of Algona Police Department, City of Black
Diamond Police Department, City of Des Moines Police Department, SeaTac Fire Department, North Highline Fire
Department, and King County EMS Units. In 1988, King County Fire District #1 was annexed to the City of Tukwila. A
separate agreement between Valley Com and the subscribing agencies has been executed, which set forth condition of
services and rates charged.
The participating cities provide the majority of revenues to Valley Com. The method of allocating revenue source was
changed in 1990 to a basis of prior year’s calls with actual first and second quarter and estimated third and fourth quarter
calls. The allocation of prorated financial participation among the five participating cities is the percentage of estimated
dispatched calls attributed to each jurisdiction compared to the total actual and estimated dispatched calls, for the period
for January 1 through December 31. The percentages are applied to the current approved budget, less revenue from
subscribing agencies and all other sources.
The 2014 cost distribution for the five participating cities is as follows:
DispatchablePercent of
CallsTotal *
Renton75,34520.31%
Kent104,44828.15%
Auburn82,27622.17%
Tukwila32,3838.73%
Federal Way76,60220.64%
Total371,054100.00%
* 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
City of Auburn: 2014 CAFR Notes to the Financial Statements
97
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 $57 million King County levy.
This agreement provides that upon voluntary termination of any sub‐region participation in the system, it surrenders its
radio frequencies, relinquishes its equipment and transfers any unexpended levy proceeds and association equipment
replacement reserves to another sub‐region or consortium of sub‐regions.
The share of equity belonging to the five participating cities is as follows:
ItemRentonKentAuburnTukwilaFederal WayTotal
Equity Dec 31, 20135,240,607$ 7,378,791$ 4,959,646$ $2,927,1583,508,470$ 24,014,672$
Current year change109,645151,995119,73147,125111,474539,970
Equity Dec 31, 20145,350,252$ 7,530,786$ 5,079,377$ 2,974,283$ 3,619,944$ 24,554,642$
% of equity21.79%30.67%20.69%12.11%14.74%
% of 2014 distribution20.31%28.15%22.17%8.73%20.64%
Liabilities are the responsibility of the five participating cities in direct proportion to their equity position.
Complete audited financial statements for Valley Communications Center can be obtained from Valley Communications
Center, 27519 108th Ave SE, Kent, WA 98030, or telephone 253‐372‐1300.
South Correctional Entity (SCORE)
The South Correctional Entity (SCORE) consolidated correctional facility was established February 25, 2009, when an
Interlocal Agreement (the “Original Interlocal Agreement”) was entered into by seven participating municipal
governments, the “Member Cities” of Auburn, Burien, Des Moines, Federal Way, 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 Host City Agreement. Pursuant to SCORE
financial policies, all unexpected funds or reserve funds shall be distributed based on the percentage of the Member City’s
average daily population at the SCORE Facility for the last three (3) years regardless of its Owner City or Host City status.
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 was 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. The SCORE PDA issued $86 million
in special obligation bonds in 2009 (the “Bonds”) to construct, develop, acquire and equip the SCORE Facility. Pursuant to
City of Auburn: 2014 CAFR Notes to the Financial Statements
98
the Formation Interlocal Agreement and the ordinances of each city, each Owner City (which includes the Cities of Auburn,
Burien Federal Way, Renton, SeaTac, and Tukwila) is obligated to budget for and pay its share, and only its share, of the
principal of and interest on the Bonds as the same become due and payable. Each Owner City’s obligation to pay its
portion is an irrevocable, unconditional full faith and credit obligation of such Owner City, payable from property taxes
levied within the constitutional and statutory authority provided without a vote of the electors of the Owner City on all of
the taxable property within the Owner City and other sources of revenues available therefor. The following is a summary of
the debt service requirements for the Bonds:
BABsAuburnBurienFederal WayRentonSeaTacTukwila
YearPrincipalInterestSubsidyTotal31%4%18%36%3%8%
20151,990,000$ 4,995,069$ (1,514,410)$ 5,470,659$ 1,695,904$ 218,826$ 984,719$ 1,969,437$ 164,120$ 437,653$
20162,065,000 4,911,886 (1,513,594) 5,463,292 1,693,621 218,532 983,393 1,966,785 163,899 437,063
20172,145,000 4,820,241 (1,503,576) 5,461,665 1,693,116 218,467 983,100 1,966,199 163,850 436,933
20182,240,000 4,715,979 (1,503,576) 5,452,403 1,690,245 218,096 981,433 1,962,865 163,572 436,192
20192,310,000 4,602,229 (1,467,237) 5,444,992 1,687,948 217,800 980,099 1,960,197 163,350 435,599
2020-202412,905,000 21,102,168 (7,183,090) 26,824,078 8,315,464 1,072,963 4,828,334 9,656,668 804,722 2,145,926
2025-202915,675,000 16,833,706 (6,067,796) 26,440,910 8,196,682 1,057,636 4,759,364 9,518,728 793,227 2,115,273
2030-203419,265,000 11,158,380 (4,128,483) 26,294,897 8,151,418 1,051,796 4,733,081 9,466,163 788,847 2,103,592
2035-203923,775,000 4,064,705 (1,697,914) 26,141,791 8,103,955 1,045,672 4,705,522 9,411,045 784,254 2,091,343
Totals82,370,000$ 77,204,363$ (26,579,676)$ 132,994,687$ 41,228,353$ 5,319,788$ 23,939,045$ 47,878,087$ 3,989,841$ 10,639,574$
Summary of Debt Service Requirements
Debt Service ScheduleDebt Service Allocation to Owner Cities
The City of Auburn reports its share of equity interest in the Governmental Activities column within the Government‐wide
financial statements under non‐current assets. The following is condensed (unaudited) financial information as of
December 31, 2014 related to SCORE:
Member CityPercent of Equity2013 Equity Balance2014 Apportionment2014 Equity Balance
Auburn29.00%2,517,237$ 1,725,997$ 4,243,234$
Burien3.00%294,323 221,087 515,410
Des Moines2.00%107,970 184,190 292,160
Federal Way25.00%1,820,940 1,855,784 3,676,724
Renton29.00%2,548,219 1,672,186 4,220,405
SeaTac5.00%331,708 380,958 712,666
Tukwila7.00%601,934 478,536 1,080,470
Grand Totals100.00%8,222,331$ 6,518,740$ 14,741,071$
South Correctional Entity (SCORE)
2014 Member Cities Equity Allocation
Completed financial statements for SCORE and SCORE PDA can be obtained at SCORE, 20817 17th Avenue South, Des
Moines, WA 98198.
City of Auburn: 2014 CAFR Notes to the Financial Statements
99
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 AdditionsReductionsBalance
12/31/201312/31/2014
Valley Communication Public Dev Auth432,000$ -$ (212,000)$ 220,000$
SCORE Public Development Authority25,534,700 - (616,900) 24,917,800
Due to Other Governments25,966,700 - (828,900) 25,137,800
Valley Communications Center4,959,646 119,731 - 5,079,377
South Correctional Entity (SCORE)2,517,237 1,725,997 - 4,243,234
Equity Share7,476,883 1,845,728 - 9,322,611
Total Investment in Joint Ventures34,460,411$
Investment in Joint Ventures
NOTE 16 – JOINTLY GOVERNED ORGANIZATION / RELATED PARTY
Residents of the cities of Auburn, Algona and Pacific approved in the November 7, 2006 general election the creation of a
regional fire authority pursuant to RCW 52.26. The new regional fire protection service authority, called the Valley Regional
Fire Authority (VRFA), provides first responder fire and emergency medical services to residents of Auburn, Algona and
Pacific. The VRFA is a new municipal corporation, with its own Governing Board, and is legally separate from the three
cities it serves. The Governing Board of the VRFA consists of the Mayors of the three cities within the VRFA service area, as
well as two Councilmembers from each city. Membership on the Governing Board is made by appointment from the city
council of the respective member cities. Effective January 1, 2007, all personnel, assets, equipment and contractual
obligations of the former Auburn Fire Department were transferred to the VRFA. Similar transfers were made by the cities
of Algona and Pacific.
In accordance with the interlocal agreement at time of formation, each member city retained its obligation for LEOFF 1
firefighter and Fire Relief and Pension Plan obligations. During 2014 Auburn paid $8,799, 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 2014 were $187,088. Medical premiums and benefit payments made under the Fire Relief and Pension Plan for 2014
were $99,877.
NOTE 17 – CONTINGENCIES AND LITIGATIONS
As of December 31, 2014, a number of claims were pending against the City for damages and legal actions. While the
outcome of these actions is uncertain, no uncovered losses are anticipated at this time with 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 general liability insurance.
The City participates in a number of federal and state assisted programs. These grants are subject to audit by the grantors
or their representatives. Such audits could result in requests for reimbursement to grantor agencies for expenditures
disallowed under the terms of the grants. The City’s management believes that such disallowances, if any, will be
immaterial.
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
City of Auburn: 2014 CAFR Notes to the Financial Statements
100
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 175
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.
WCIA is fully funded by its members, who make annual assessments on a prospectively rated basis, as determined by an
outside, independent actuary. The assessment covers loss, loss adjustment, and administrative expenses. As outlined in
the interlocal, WCIA retains the right to additionally assess the membership for any funding shortfall.
An investment committee, using investment brokers, produces additional revenue by investment of WCIA’s assets in
financial instruments which comply with all State guidelines.
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.
City of Auburn: 2014 CAFR Required Supplemental Information
101
The information presented in the following required schedules was determined as part of the actuarial valuations at the
dates indicated.
Firefighter’s Pension Fund
January 1, 2015
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, 2003 3,514 2,428 (1,086) 145.00%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
January 1, 2015 2,609 3,130 521 83.00%- 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)
Annual Required Percentage
Year Ending Employer Fire Insurance Total Employer Contributions of ARC
12/31 Contributions*Premiums Contributions*(ARC)Contributions
2009 (20,768) 58,000 37,232 (78,233) N/A
2010 (14,496) 63,545 49,049 (78,233) N/A
2011 (22,901) 66,375 43,474 21,469 202%
2012 (14,825) 63,205 48,380 21,469 225%
2013 (17,710) 70,036 52,326 70,351 74%
2014 219,619 77,558 297,177 70,351 422%
* Employer contributions for pensions are total contributions to the Fund net of disbursements
from the Fund for medical expenses under RCW 41.26.150 and administrative expenses.
GASB STATEMENT No. 25 SCHEDULE OF EMPLOYER CONTRIBUTIONS
City of Auburn: 2014 CAFR Required Supplemental Information
102
Retiree Medical and Long-Term Care Benefits
For LEOFF 1 Employees
December 31, 2014
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
January 1, 2014 - 26,246 26,246 0%N/A N/A
GASB STATEMENTS No. 43 and No. 45
(rounded to thousands)
SCHEDULE OF FUNDING PROGRESS
Year Ending Annual Employer % of OPEB Net OPEB
12/31 OPEB Cost Contributions Cost Obligation
2009 1,691,265 1,037,683 61%1,446,786
2010 1,670,548 1,048,494 63%2,068,840
2011 2,123,011 1,095,684 52%3,096,167
2012 2,076,531 1,104,259 53%4,068,439
2013 2,024,410 1,124,809 56%4,968,040
2014 2,036,710 793,286 39%6,211,464
SCHEDULE OF EMPLOYER CONTRIBUTIONS
City of Auburn: 2014 CAFR Fund Financial Statements and Schedules
103
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: 2014 CAFR Fund Financial Statements and Schedules
104
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 11,831,102$ 34,856$ 1,053,724$ 1,669,648$ 14,589,330$
Receivables:
Other Receivables 319,710 - - - 319,710
Special Assessments - 23,547 - - 23,547
Due From Other Governmental Units 135,453 - 709,007 - 844,460
Total Assets 12,286,265 58,403 1,762,731 1,669,648 15,777,047
LIABILITIES, DEFERRED INFLOWS AND FUND BALANCES:
Liabilities:
Current Payables 1,225,353 - 677,022 - 1,902,375
Other Liabilities Payable 117,495 - - - 117,495
Total Liabilities 1,342,848 - 677,022 - 2,019,870
Deferred Inflow of Resources:
Unavailable Revenue-Special Assessments - 23,547 - - 23,547
Total Deferred Inflow of Resources - 23,547 - - 23,547
Fund Balances:
Nonspendable - - - 1,574,148 1,574,148
Restricted 5,603,711 34,856 527,770 - 6,166,337
Committed 5,066,181 - - - 5,066,181
Assigned 273,525 - 557,939 95,500 926,964
Total Fund Balances 10,943,417 34,856 1,085,709 1,669,648 13,733,630
Total Liabilities, Deferred Inflows and Fund
Balances 12,286,265$ 58,403$ 1,762,731$ 1,669,648$ 15,777,047$
December 31, 2014
City of Auburn, Washington
COMBINING BALANCE SHEET
NON-MAJOR GOVERNMENT FUNDS
City of Auburn: 2014 CAFR Fund Financial Statements and Schedules
105
Total Total Total Total Total
Nonmajor Nonmajor Nonmajor Nonmajor Nonmajor
Special Revenue Debt Service Capital Projects Permanent Governmental
REVENUES:
Taxes:
Property -$ -$ 128,297$ -$ 128,297$
Retail Sales & Use 1,753,532 241,767 - - 1,995,299
Interfund Utility 581,238 - - - 581,238
Utility 1,447,404 - - - 1,447,404
Excise 99,783 - - - 99,783
Other 42,988 - - - 42,988
Intergovernmental 485,566 498,473 709,007 - 1,693,046
Charges for Services 1,447,055 - 10,553 37,832 1,495,440
Special Assessments - 472,800 - - 472,800
Investment Earnings 10,280 25,325 1,260 2,252 39,117
Miscellaneous 68,264 - 133,112 - 201,376
Total Revenues 5,936,110 1,238,365 982,229 40,084 8,196,788
EXPENDITURES:
Current:
Security of Persons & Property 300,024 - - - 300,024
Transportation 2,105,784 - - - 2,105,784
Economic Environment 561,119 - - - 561,119
Cultural and Recreation - - 1,786 - 1,786
Debt Service:
Principal - 1,673,660 - - 1,673,660
Interest - 1,796,832 - - 1,796,832
Capital Outlay - - 2,427,453 - 2,427,453
Total Expenditures 2,966,927 3,470,492 2,429,239 - 8,866,658
Excess (Deficiency) of Revenues
Over (Under) Expenditures 2,969,183 (2,232,127) (1,447,010) 40,084 (669,870)
OTHER FINANCING SOURCES (USES):
Transfers In (Note 5)168,156 2,231,195 1,499,170 - 3,898,521
Transfers Out (Note 5)(1,185,576) (10,000) - - (1,195,576)
Total Other Financing Sources (Uses)(1,017,420) 2,221,195 1,499,170 - 2,702,945
Net Change in Fund Balances 1,951,763 (10,932) 52,160 40,084 2,033,075
Fund Balances - Beginning 8,991,654 45,788 1,033,549 1,629,564 11,700,555
Fund Balances - Ending 10,943,417$ 34,856$ 1,085,709$ 1,669,648$ 13,733,630$
City of Auburn, Washington
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
NON-MAJOR GOVERNMENT FUNDS
For the Year Ended December 31, 2014
City of Auburn: 2014 CAFR Fund Financial Statements and Schedules
106
City of Auburn: 2014 CAFR Fund Financial Statements and Schedules
107
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 eight 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: 2014 CAFR Fund Financial Statements and Schedules
108
Page 1 of 2
Hotel/Arterial Housing
Local Motel Street Drug Community
Streets Tax Preservation Forfeiture Development
ASSETS:
Cash and Cash Equivalents 2,964,313$ 175,985$ 2,894,760$ 540,402$ 26,162$
Receivables:
Other Receivables - - 319,710 - -
Due From Other Governmental Units - - - 11,259 124,194
Total Assets 2,964,313 175,985 3,214,470 551,661 150,356
LIABILITIES AND FUND BALANCES:
Liabilities:
Current Payables 921,336 9,089 33,490 11,840 105,452
Other Liabilities Payable - - - - -
Total Liabilities 921,336 9,089 33,490 11,840 105,452
Fund Balances:
Restricted - 166,896 3,162 539,236 44,904
Committed 1,890,490 - 3,175,691 - -
Assigned 152,487 - 2,127 585 -
Total Fund Balances 2,042,977 166,896 3,180,980 539,821 44,904
Total Liabilities and Fund Balances 2,964,313$ 175,985$ 3,214,470$ 551,661$ 150,356$
City of Auburn, Washington
COMBINING BALANCE SHEET
NON-MAJOR SPECIAL REVENUE FUNDS
December 31, 2014
City of Auburn: 2014 CAFR Fund Financial Statements and Schedules
109
Page 2 of 2
Total
Business Nonmajor
Recreational Improvement Mitigation Special Revenue
Trails Area Fees Funds
35,956$ 38,416$ 5,155,108$ 11,831,102$
- - - 319,710
- - - 135,453
35,956 38,416 5,155,108 12,286,265
- 7,045 137,101 1,225,353
- - 117,495 117,495
- 7,045 254,596 1,342,848
35,925 31,321 4,782,267 5,603,711
- - - 5,066,181
31 50 118,245 273,525
35,956 31,371 4,900,512 10,943,417
35,956$ 38,416$ 5,155,108$ 12,286,265$
City of Auburn: 2014 CAFR Fund Financial Statements and Schedules
110
Page 1 of 2
Hotel/Arterial Housing
Local Motel Street Drug Community
Streets Tax Preservation Forfeiture Development
REVENUES:
Taxes:
Retail Sales & Use 1,753,532$ -$ -$ -$ -$
Interfund Utility - - 581,238 - -
Utility - - 1,447,404 - -
Excise - 99,783 - - -
Other - - - - -
Intergovernmental - - - 43,058 436,170
Charges for Services - 7,254 3,162 - -
Investment Earnings 2,487 138 2,127 585 -
Miscellaneous 26,034 - - 34,849 7,381
Total Revenues 1,782,053 107,175 2,033,931 78,492 443,551
EXPENDITURES:
Current:
Security of Persons and Property - - - 250,024 -
Transportation 1,788,150 - 317,634 - -
Economic Environment - 72,130 - - 436,170
Total Expenditures 1,788,150 72,130 317,634 250,024 436,170
Excess (Deficiency) of Revenues
Over (Under) Expenditures (6,097) 35,045 1,716,297 (171,532) 7,381
OTHER FINANCING SOURCES (USES):
Transfers In (Note 5)150,000 - - - -
Transfers Out (Note 5)(17,832) - (17,832) - -
Total Other Financing Sources (Uses)132,168 - (17,832) - -
Net Change in Fund Balances 126,071 35,045 1,698,465 (171,532) 7,381
Fund Balances - Beginning 1,916,906 131,851 1,482,515 711,353 37,523
Fund Balances - Ending 2,042,977$ 166,896$ 3,180,980$ 539,821$ 44,904$
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, 2014
City of Auburn: 2014 CAFR Fund Financial Statements and Schedules
111
Page 2 of 2
Total
Business Nonmajor
Recreational Improvement Mitigation Special Revenue
Trails Area Fees Funds
-$ -$ -$ 1,753,532$
- - - 581,238
- - - 1,447,404
- - - 99,783
- 42,988 - 42,988
6,338 - - 485,566
- - 1,436,639 1,447,055
31 50 4,862 10,280
- - 68,264
6,369 43,038 1,441,501 5,936,110
- - 50,000 300,024
- - - 2,105,784
- 52,819 - 561,119
- 52,819 50,000 2,966,927
6,369 (9,781) 1,391,501 2,969,183
- - 18,156 168,156
- - (1,149,912) (1,185,576)
- - (1,131,756) (1,017,420)
6,369 (9,781) 259,745 1,951,763
29,587 41,152 4,640,767 8,991,654
35,956$ 31,371$ 4,900,512$ 10,943,417$
City of Auburn: 2014 CAFR Fund Financial Statements and Schedules
112
Variance with
Final Final Budget
Original Adopted Actual Positive
(GAAP Basis)(GAAP Basis)Results (Negative)
REVENUES:
Taxes:
Property 1,294,300$ 1,560,000$ 1,753,532$ 193,532$
Investment Earnings 3,350 3,350 2,487 (863)
Miscellaneous - - 26,034 26,034
Total Revenues 1,297,650 1,563,350 1,782,053 218,703
EXPENDITURES:
Current:
Transportation 1,444,300 2,545,396 1,788,150 757,246
Total Expenditures 1,444,300 2,545,396 1,788,150 757,246
Excess (Deficiency) of Revenues
Over (Under) Expenditures (146,650) (982,046) (6,097) 975,949
OTHER FINANCING SOURCES (USES):
Transfers In (Note 5)150,000 150,000 150,000 -
Transfers Out (Note 5)- (27,885) (17,832) 10,053
Total Other Financing Sources (Uses)150,000 122,115 132,168 10,053
Net Change in Fund Balances 3,350 (859,931) 126,071 986,002
Fund Balances - Beginning 270,670 1,916,906 1,916,906 -
Fund Balances - Ending 274,020$ 1,056,975$ 2,042,977$ 986,002$
Budget Amounts
For the Year Ended December 31, 2014
City of Auburn, Washington
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
LOCAL STREETS SPECIAL REVENUE FUND
City of Auburn: 2014 CAFR Fund Financial Statements and Schedules
113
Variance with
Final Final Budget
Original Adopted Actual Positive
(GAAP Basis)(GAAP Basis)Results (Negative)
REVENUES:
Taxes:
Excise 70,000$ 70,000$ 99,783$ 29,783$
Charges for Services 9,100 9,100 7,254 (1,846)
Investment Earnings 150 150 138 (12)
Total Revenues 79,250 79,250 107,175 27,925
EXPENDITURES:
Current:
Economic Environment 85,000 85,000 72,130 12,870
Total Expenditures 85,000 85,000 72,130 12,870
Excess (Deficiency) of Revenues
Over (Under) Expenditures (5,750) (5,750) 35,045 40,795
Net Change in fund Balances (5,750) (5,750) 35,045 40,795
Fund Balances - Beginning 86,181 131,851 131,851 -
Fund Balances - Ending 80,431$ 126,101$ 166,896$ 40,795$
Budget Amounts
For the Year Ended December 31, 2014
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: 2014 CAFR Fund Financial Statements and Schedules
114
Variance with
Final Final Budget
Original Adopted Actual Positive
(GAAP Basis)(GAAP Basis)Results (Negative)
REVENUES:
Taxes:
Interfund Utility 525,069$ 534,397$ 581,238$ 46,841$
Utility 1,516,154 1,506,826 1,447,404 (59,422)
CHARGES FOR SERVICES - - 3,162 3,162
Investment Earnings 1,500 1,500 2,127 627
Total Revenues 2,042,723 2,042,723 2,033,931 (8,792)
EXPENDITURES:
Current:
Transportation 2,000,000 3,281,410 317,634 2,963,776
Total Expenditures 2,000,000 3,281,410 317,634 2,963,776
Excess (Deficiency) of Revenues
Over (Under) Expenditures 42,723 (1,238,687) 1,716,297 2,954,984
OTHER FINANCING SOURCES (USES):
Transfers Out (Note 5)- (27,885) (17,832) 10,053
Total Other Financing Sources (Uses)- (27,885) (17,832) 10,053
Net Change in Fund Balances 42,723 (1,266,572) 1,698,465 2,965,037
Fund Balances - Beginning 1,584,937 1,482,515 1,482,515 -
Fund Balances - Ending 1,627,660$ 215,943$ 3,180,980$ 2,965,037$
Budget Amounts
For the Year Ended December 31, 2014
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: 2014 CAFR Fund Financial Statements and Schedules
115
Variance with
Final Final Budget
Original Adopted Actual Positive
(GAAP Basis)(GAAP Basis)Results (Negative)
REVENUES:
Taxes:
Intergovernmental 30,000$ 30,000$ 43,058$ 13,058$
Investment Earnings 1,300 1,300 585 (715)
Miscellaneous 250,000 250,000 34,849 (215,151)
Total Revenues 281,300 281,300 78,492 (202,808)
EXPENDITURES:
Current:
Security of Persons & Property 280,915 311,648 250,024 61,624
Total Expenditures 280,915 311,648 250,024 61,624
Excess (Deficiency of Revenues
Over (Under) Expenditures 385 (30,348) (171,532) (141,184)
Net Change in Fund Balances 385 (30,348) (171,532) (141,184)
Fund Balances - Beginning 917,468 711,353 711,353 -
Fund Balances - Ending 917,853$ 681,005$ 539,821$ (141,184)$
Budget Amounts
For the Year Ended December 31, 2014
City of Auburn, Washington
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
DRUG FORFEITURE SPECIAL REVENUE FUND
City of Auburn: 2014 CAFR Fund Financial Statements and Schedules
116
Variance with
Final Final Budget
Original Adopted Actual Positive
(GAAP Basis)(GAAP Basis)Results (Negative)
REVENUES:
Intergovernmental 450,000$ 450,000$ 436,170$ (13,830)$
Miscellaneous - - 7,381 7,381
Total Revenues 450,000 450,000 443,551 (6,449)
EXPENDITURES:
Current:
Economic Environment 460,000 460,152 436,170 23,982
Total Expenditures 460,000 460,152 436,170 23,982
Excess (Deficiency) of Revenues
Over (Under) Expenditures (10,000) (10,152) 7,381 17,533
Net Change in Fund Balances (10,000) (10,152) 7,381 17,533
Fund Balances - Beginning 45,647 37,523 37,523 -
Fund Balances - Ending 35,647$ 27,371$ 44,904$ 17,533$
Budget Amounts
For the Year Ended December 31, 2014
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: 2014 CAFR Fund Financial Statements and Schedules
117
Variance with
Final Final Budget
Original Adopted Actual Positive
(GAAP Basis)(GAAP Basis)Results (Negative)
REVENUES:
TAXES:
Intergovernmental 7,100$ 7,100$ 6,338$ (762)$
Investment Earnings 20 20 31 11
Total Revenues 7,120 7,120 6,369 (751)
Excess (Deficiency) of Revenues
Over (Under) Expenditures 7,120 7,120 6,369 (751)
Net Change in Fund Balances 7,120 7,120 6,369 (751)
Fund Balances - Beginning 29,571 29,587 29,587 -
Fund Balances - Ending 36,691$ 36,707$ 35,956$ (751)$
Budget Amounts
For the Year Ended December 31, 2014
City of Auburn, Washington
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
RECREATION TRAILS SPECIAL REVENUE FUND
City of Auburn: 2014 CAFR Fund Financial Statements and Schedules
118
Variance with
Final Final Budget
Original Adopted Actual Positive
(GAAP Basis)(GAAP Basis)Results (Negative)
REVENUES:
Taxes:
Other 55,000$ 55,000$ 42,988 (12,012)$
Investment Earnings 40 40 50 10
Total Revenues 55,040 55,040 43,038 (12,002)
EXPENDITURES:
Current:
Economic Environment 55,000 55,000 52,819 2,181
Total Expenditures 55,000 55,000 52,819 2,181
Excess (Deficiency) of Revenues
Over (Under) Expenditures 40 40 (9,781) (9,821)
Net Change in Fund Balances 40 40 (9,781) (9,821)
Fund Balances - Beginning 21,680 41,152 41,152 -
Fund Balances - Ending 21,720$ 41,192$ 31,371$ (9,821)$
Budget Amounts
For the Year Ended December 31, 2014
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: 2014 CAFR Fund Financial Statements and Schedules
119
Variance with
Final Final Budget
Original Adopted Actual Positive
(GAAP Basis)(GAAP Basis)Results (Negative)
REVENUES:
Investment Earnings 3,000$ 3,000$ 17,225$ 14,225$
Total Revenues 3,000 3,000 17,225 14,225
EXPENDITURES:
Debt Service:
Principal 212,000 212,000 212,000 -
Interest and Other Costs 17,280 17,280 17,280 -
Total Expenditures 229,280 229,280 229,280 -
Excess (Deficiency) of Revenues
Over (Under) Expenditures (226,280) (226,280) (212,055) 14,225
OTHER FINANCING SOURCES (USES):
Transfers Out (Note 5)(1,205,344) (3,967,428) (2,416,387) 1,551,041
Total Other Financing Sources (Uses)(1,205,344) (3,967,428) (2,416,387) 1,551,041
Net Change in Fund Balances (1,431,624) (4,193,708) (2,628,442) 1,565,266
Fund Balances - Beginning 5,700,796 8,228,128 8,228,128 -
Fund Balances - Ending 4,269,172$ 4,034,420$ 5,599,686$ 1,565,266$
RECONCILIATION OF PERSPECTIVE DIFFERENCE BETWEEN BUDGETARY INFORMATION AND
GENERALLY ACCEPTED ACCOUNTING PRINCIPLES (GAAP):
The Cumulative Reserve Fund is combined with
the General Fund for purposes of GASB Statement 54 (5,599,686)
Fund Balance - Ending (GAAP)-$
The notes to the financial statements are an integral part of this statement.
Budget Amounts
For the Year Ended December 31, 2014
City of Auburn, Washington
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
CUMULATIVE RESERVE SPECIAL REVENUE FUND
City of Auburn: 2014 CAFR Fund Financial Statements and Schedules
120
Variance with
Final Final Budget
Original Adopted Actual Positive
(GAAP Basis)(GAAP Basis)Results (Negative)
REVENUES:
TAXES:
Charges for Services 875,000$ 875,000$ 1,436,639$ 561,639$
Investment Earnings 5,000 5,000 4,862 (138)
Total Revenues 880,000 880,000 1,441,501 561,501
EXPENDITURES:
Current:
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 830,000 830,000 1,391,501 561,501
OTHER FINANCING SOURCES (USES):
Transfers In (Note 5)- 1,045,300 18,156 (1,027,144)
Transfers Out (Note 5)(376,050) (2,595,712) (1,149,912) 1,445,800
Total Other Financing Sources (Uses)(376,050) (1,550,412) (1,131,756) 418,656
Net Change in Fund Balances 453,950 (720,412) 259,745 980,157
Fund Balances - Beginning 2,531,402 4,640,767 4,640,767 -
Fund Balances - Ending 2,985,352$ 3,920,355$ 4,900,512$ 980,157$
Budget Amounts
For the Year Ended December 31, 2014
City of Auburn, Washington
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
MITIGATION SPECIAL REVENUE FUND
City of Auburn: 2014 CAFR Fund Financial Statements and Schedules
121
NON-MAJOR GOVERNMENTAL FUNDS
DEBT SERVICE FUNDS
Debt service funds account for payments of principal and interest on general obligation and special
assessment long-term debt. The City of Auburn has two outstanding general obligation issues, and
two 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 2006 General Obligation Bonds
Accounts for the debt service on a Council-approved bond issue to finance improvements to the
Auburn Golf Course including a pro shop, clubhouse, and related facilities. In addition, the bonds were
used to construct and equip restaurant, banquet and related facilities for the restaurant located at the
Auburn Golf Course.
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: 2014 CAFR Fund Financial Statements and Schedules
122
Total
GO Library 2010 2010 Nonmajor
Refunding A & B C & D Local 2006 LID Special Debt Service
Bond Debt Annex Revitalization Golf Guarantee Assessments Funds
ASSETS:
Cash and Cash Equivalents -$ -$ -$ -$ 24,547$ 10,309$ 34,856$
Receivables:
Special Assessments - - - - - 23,547 23,547
Total Assets - - - - 24,547 33,856 58,403
LIABILITIES, DEFERRED INFLOWS AND FUND BALANCES:
Deferred Inflows of Resources:
Unavailable Revenue - Special Assessments - - - - - 23,547 23,547
Total Deferred Inflows of Resources - - - - - 23,547 23,547
Fund Balances:
Restricted - - - - 24,547 10,309 34,856
Total Fund Balances - - - - 24,547 10,309 34,856
Total Liabilities, Deferred Inflows and
Fund Balances -$ -$ -$ -$ 24,547$ 33,856$ 58,403$
City of Auburn, Washington
COMBINING BALANCE SHEET
NON-MAJOR DEBT SERVICE FUNDS
December 31, 2014
City of Auburn: 2014 CAFR Fund Financial Statements and Schedules
123
Total
GO Library 2010 2010 Nonmajor
Refunding A & B C & D Local 2006 L I D Special Debt Service
Bond Debt Annex Revitalization Golf Guarantee Assessments Funds
REVENUES:
Taxes:
Retail Sales & Use -$ -$ 241,767$ -$ -$ -$ 241,767$
Special Assessments - - - - - 472,800 472,800
Intergovernmental - 376,863 121,610 - - - 498,473
Investment Earnings 22 - 91 30 23 25,159 25,325
Total Revenues 22 376,863 363,468 30 23 497,959 1,238,365
EXPENDITURES:
Debt Service:
Principal 230,000 515,000 215,000 240,000 - 473,660 1,673,660
Interest 53,700 1,181,517 383,217 153,144 - 25,254 1,796,832
Total Expenditures 283,700 1,696,517 598,217 393,144 - 498,914 3,470,492
Excess (Deficiency) of Revenues
Over (Under) Expenditures (283,678) (1,319,654) (234,749) (393,114) 23 (955) (2,232,127)
OTHER FINANCING SOURCES (USES):
Transfers In (Note 5)283,678 1,319,654 234,749 393,114 - - 2,231,195
Transfers Out (Note 5)- - - - (10,000) - (10,000)
Total Other Financing Sources (Uses)283,678 1,319,654 234,749 393,114 (10,000) - 2,221,195
Net Change in Fund Balances - - - - (9,977) (955) (10,932)
Fund Balances - Beginning - - - - 34,524 11,264 45,788
Fund Balances - Ending -$ -$ -$ -$ 24,547$ 10,309$ 34,856$
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, 2014
City of Auburn: 2014 CAFR Fund Financial Statements and Schedules
124
City of Auburn: 2014 CAFR Fund Financial Statements and Schedules
125
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.
City of Auburn: 2014 CAFR Fund Financial Statements and Schedules
126
Municipal Nonmajor
Park Local Capital Project
Construction Revitalization Funds
ASSETS:
Cash and Cash Equivalents 495,785$ 557,939$ 1,053,724$
Due From Other Governmental Units 709,007 - 709,007
Total Assets 1,204,792 557,939 1,762,731
LIABILITIES AND FUND BALANCES:
Liabilities:
Current Payables 677,022 - 677,022
Total Liabilities 677,022 - 677,022
Fund Balances:
Restricted 527,770 - 527,770
Assigned - 557,939 557,939
Total Fund Balances 527,770 557,939 1,085,709
Total Liabilities and Fund Balances 1,204,792$ 557,939$ 1,762,731$
City of Auburn, Washington
COMBINING BALANCE SHEET
CAPITAL PROJECT FUNDS
December 31, 2014
City of Auburn: 2014 CAFR Fund Financial Statements and Schedules
127
Municipal Nonmajor
Park Local Capital Project
Construction Revitalization Funds
REVENUES:
Taxes:
Property 128,297$ -$ 128,297$
Intergovernmental 709,007 - 709,007
Charges for Services 10,553 - 10,553
Investment Earnings 736 524 1,260
Miscellaneous 133,112 - 133,112
Total Revenues 981,705 524 982,229
EXPENDITURES:
Cultural and Recreation 131 1,655 1,786
Capital Outlay 2,427,453 - 2,427,453
Total Expenditures 2,427,584 1,655 2,429,239
Excess (Deficiency) of Revenues
Over (Under) Expenditures (1,445,879) (1,131) (1,447,010)
OTHER FINANCING SOURCES (USES):
Transfers In (Note 5)1,499,170 - 1,499,170
Total Other Financing Sources (Uses)1,499,170 - 1,499,170
Net Change in Fund Balances 53,291 (1,131) 52,160
Fund Balances - Beginning 474,479 559,070 1,033,549
Fund Balances - Ending 527,770$ 557,939$ 1,085,709$
City of Auburn, Washington
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
CAPITAL PROJECT FUNDS
For the Year Ended December 31, 2014
City of Auburn: 2014 CAFR Fund Financial Statements and Schedules
128
City of Auburn: 2014 CAFR Fund Financial Statements and Schedules
129
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.
City of Auburn: 2014 CAFR Fund Financial Statements and Schedules
130
Cemetery
Endowed
Care
ASSETS:
Cash and Cash Equivalents
Non-Expendable Trust 1,669,648$
Total Assets 1,669,648
FUND BALANCES:
Nonspendable 1,574,148
Assigned 95,500
Total Fund Balances 1,669,648
Total Liabilities and Fund Balances 1,669,648$
City of Auburn, Washington
BALANCE SHEET
PERMANENT FUND
December 31, 2014
City of Auburn: 2014 CAFR Fund Financial Statements and Schedules
131
Cemetery
Endowed
Care
REVENUES:
Increase to Endowment from Lot Sales 37,832$
Investment Earnings 2,252
Total Revenues 40,084
Excess (Deficiency) of Revenues
Over (Under) Expenditures 40,084
Net Change in Fund Balance 40,084
Fund Balance - Beginning 1,629,564
Fund Balance - Ending 1,669,648$
For the Year Ended December 31, 2014
City of Auburn, Washington
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
PERMANENT FUND
City of Auburn: 2014 CAFR Fund Financial Statements and Schedules
132
City of Auburn: 2014 CAFR Fund Financial Statements and Schedules
133
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.
City of Auburn: 2014 CAFR Fund Financial Statements and Schedules
134
Total
Nonmajor
Enterprise
Airport Cemetery Funds
ASSETS:
Current Assets:
Cash and Cash Equivalents 919,416$ 330,593$ 1,250,009$
Restricted Cash:
Customer Deposits 53,106 - 53,106
Due From Other Governmental Units 23,026 - 23,026
Inventories - 9,064 9,064
Total Current Assets 995,548 339,657 1,335,205
Noncurrent Assets:
Capital Assets:
Land 3,653,343 342,836 3,996,179
Buildings and Equipments 2,707,302 1,022,267 3,729,569
Improvements Other Than Buildings 9,535,548 1,143,417 10,678,965
Construction in Progress 75,420 - 75,420
Less: Accumulated Depreciation (6,208,832) (1,416,483) (7,625,315)
Total Capital Assets (Net of A/D)9,762,781 1,092,037 10,854,818
Total Noncurrent Assets 9,762,781 1,092,037 10,854,818
Total Assets 10,758,329 1,431,694 12,190,023
DEFERRED OUTFLOWS OF RESOURCES:
Deferred Outflow from Bond Refunding 41,546 - 41,546
LIABILITIES:
Current Liabilities:
Current Payables 49,220 44,360 93,580
Interfund Payables 200,000 - 200,000
Employee Leave Benefits - Current 2,557 14,138 16,695
General Obligation Bonds Payable - Current 135,000 749 135,749
Customer Deposits 53,106 - 53,106
Total Current Liabilities 439,883 59,247 499,130
Noncurrent Liabilities:
Employee Leave Benefits 587 3,245 3,832
General Obligation Bonds Payable 696,858 498,941 1,195,799
Total Noncurrent Liabilities 697,445 502,186 1,199,631
Total Liabilities 1,137,328 561,433 1,698,761
NET POSITION:
Invested in Capital Assets, Net of Related Debt 8,972,469 592,347 9,564,816
Unrestricted 690,078 277,914 967,992
Total Net Position 9,662,547$ 870,261$ 10,532,808$
City of Auburn, Washington
COMBINING STATEMENT OF NET POSITION
NON-MAJOR ENTERPRISE FUNDS
December 31, 2014
City of Auburn: 2014 CAFR Fund Financial Statements and Schedules
135
Total
Nonmajor
Enterprise
Airport Cemetery Funds
OPERATING REVENUES:
Charges for Services 29,270$ 983,899$ 1,013,169$
Other Operating Revenue 629,267 - 629,267
Total Operating Revenues 658,537 983,899 1,642,436
OPERATING EXPENSES:
Operations & Maintenance 1,761 632,414 634,175
Administration 466,984 280,544 747,528
Depreciation/Amortization 401,684 53,095 454,779
Other Operating Expenses 334 20,017 20,351
Total Operating Expenses 870,763 986,070 1,856,833
Operating Income (Loss)(212,226) (2,171) (214,397)
NON-OPERATING REVENUE (EXPENSE):
Interest Revenue 906 300 1,206
Other Non-Operating Revenues 601,613 4,679 606,292
Interest Revenue (Expense)(46,612) (21,429) (68,041)
Total Non-Operating Revenue (Expense)555,907 (16,450) 539,457
Income (Loss) Before Contributions & Transfers 343,681 (18,621) 325,060
Change in Net Position 343,681 (18,621) 325,060
Net Position, January 1 9,318,866 888,882 10,207,748
Net Position, December 31 9,662,547$ 870,261$ 10,532,808$
City of Auburn, Washington
COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION
NON-MAJOR ENTERPRISE FUNDS
For the Year Ended December 31, 2014
City of Auburn: 2014 CAFR Fund Financial Statements and Schedules
136
Page 1 of 2
Total
Non Major
Enterprise
AirportCemetery Funds
CASH FLOWS FROM OPERATING ACTIVITIES:
Cash Received From Users 657,950$ 983,899$ 1,641,849$
Cash Paid to Suppliers for Goods & Services (456,476) (313,140) (769,616)
Cash Paid for Taxes (335) (20,017) (20,352)
Cash Paid to Employees (28,019) (598,112) (626,131)
Net Cash Provided (Used) By Operating Activities 173,120 52,630 225,750
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:
Interfund Loan Payable 200,000 - 200,000
Operating Grant Received 597,532 - 597,532
Other Non-Operating Revenue 4,081 - 4,081
Net Cash Provided (Used) by Non-Capital Financing Activities 801,613 - 801,613
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES:
Purchase of Capital Assets (858,708) - (858,708)
Capital Grant 61,826 - 61,826
Principal Payment on Debt (125,000) - (125,000)
Interest Payment on Debt (41,675) (22,267) (63,942)
Net Cash Provided (Used) for Capital and Related Financing Activities (963,557) (22,267) (985,824)
CASH FLOW FROM INVESTING ACTIVITIES:
Interest Received 906 4,979 5,885
Net Cash Provided (Used) in Investing Activities 906 4,979 5,885
Net Increase (Decrease) in Cash and Cash Equivalents 12,082 35,342 47,424
Cash and Cash Equivalents - Beginning of Year 960,440 295,251 1,255,691
Cash and Cash Equivalents - End of Year 972,522$ 330,593$ 1,303,115$
CASH AT END OF YEAR CONSISTS OF:
Cash and Cash Equivalents 919,416 330,593 1,250,009
Restricted Cash - Customer Deposits 53,106 - 53,106
Total Cash 972,522$ 330,593$ 1,303,115$
City of Auburn, Washington
COMBINING STATEMENT OF CASH FLOWS
NON-MAJOR ENTERPRISE FUNDS
For the Fiscal Year Ended December 31, 2014
City of Auburn: 2014 CAFR Fund Financial Statements and Schedules
137
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)(212,226)$ (2,171)$ (214,397)$
ADJUSTMENTS TO RECONCILE OPERATING INCOME TO
NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES:
Depreciation 401,684 53,095 454,779
Asset (Increases) Decreases:
Inventory - 4,301 4,301
Liability Increases (Decreases):
Accounts & Vouchers Payable (16,135) (4,059) (20,194)
Deposits Payable (587) - (587)
Wages & Benefits Payable 41 1,737 1,778
Compensated Absences Payable 343 (273) 70
Total Adjustments 385,346 54,801 440,147
Net Cash Provided (Used) by Operating Activities 173,120$ 52,630$ 225,750$
SCHEDULE OF NONCASH INVESTING, CAPITAL AND
FINANCING ACTIVITIES
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, 2014
City of Auburn: 2014 CAFR Fund Financial Statements and Schedules
138
City of Auburn: 2014 CAFR Fund Financial Statements and Schedules
139
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 five 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 Workers Comp Self Insurance Fund
Provides a source of funds to pay time loss and medical benefits for employees who are affected by
an occupational injury or illness.
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.
City of Auburn: 2014 CAFR Fund Financial Statements and Schedules
140
Workers Comp Information Equipment
Insurance Self Insurance Facilities Services Rental Total
ASSETS:
Current Assets:
Cash and Cash Equivalents 1,654,074$ 447,085$ 2,326,948$ 3,912,385$ 5,895,013$ 14,235,505$
Customer Accounts - - 89,110 - 1,055 90,165
Due From Other Governmental Units - - - 5,382 - 5,382
Inventories - - - - 216,200 216,200
Total Current Assets 1,654,074 447,085 2,416,058 3,917,767 6,112,268 14,547,252
Noncurrent Assets:
Capital Assets:
Buildings and Equipment - - - 6,225,215 13,267,931 19,493,146
Improvements Other than Buildings - - - 7,497 109,661 117,158
Construction in Progress - - - - 34,727 34,727
Less: Accumulated Depreciation - - - (4,862,214) (8,343,445) (13,205,659)
Total Capital Assets (Net of A/D)- - - 1,370,498 5,068,874 6,439,372
Total Noncurrent Assets - - - 1,370,498 5,068,874 6,439,372
Total Assets 1,654,074 447,085 2,416,058 5,288,265 11,181,142 20,986,624
LIABILITIES:
Current Liabilities:
Current Payables 17 7,082 221,146 374,440 267,578 870,263
Customer Deposits - - 300 - - 300
Employee Leave Benefits - Current - 4,184 34,058 70,754 39,954 148,950
Total Current Liabilities 17 11,266 255,504 445,194 307,532 1,019,513
Noncurrent Liabilities
Employee Leave Benefits - 960 7,818 16,241 9,171 34,190
Total Noncurrent Liabilities - 960 7,818 16,241 9,171 34,190
Total Liabilities 17 12,226 263,322 461,435 316,703 1,053,703
NET POSITION:
Invested in Capital Assets, Net of Related Debt - - - 1,370,498 5,068,874 6,439,372
Unrestricted 1,654,057 434,859 2,152,736 3,456,332 5,795,565 13,493,549
Total Net Position 1,654,057$ 434,859$ 2,152,736$ 4,826,830$ 10,864,439$ 19,932,921$
City of Auburn, Washington
COMBINING STATEMENT OF NET POSITION
INTERNAL SERVICE FUNDSDecember 31, 2014
City of Auburn: 2014 CAFR Fund Financial Statements and Schedules
141
Workers Comp Information Equipment
Insurance Self Insurance Facilities Services Rental Total
OPERATING REVENUES:
Charges for Services -$ 797,549$ 3,399,860$ 4,778,931$ 2,935,003$ 11,911,343
Other Operating Revenue - - 103,699 136,130 799 240,628
Total Operating Revenues - 797,549 3,503,559 4,915,061 2,935,802 12,151,971
OPERATING EXPENSES:
Operations & Maintenance - 362,920 2,630,724 4,392,549 1,600,637 8,986,830
Administration 162,879 - - - 902,958 1,065,837
Depreciation/Amortization - - - 562,487 774,092 1,336,579
Total Operating Expenses 162,879 362,920 2,630,724 4,955,036 3,277,687 11,389,246
Operating Income (Loss)(162,879) 434,629 872,835 (39,975) (341,885) 762,725
NON-OPERATING REVENUE (EXPENSE):
Interest Revenue 1,205 230 2,081 3,366 5,475 12,357
Other Non-Operating Revenues - - 2,354 2,172 48,058 52,584
Gain (Loss) on Sale of Capital Assets - - - - 1,060 1,060
Total Non-Operating Revenue (Expense)1,205 230 4,435 5,538 54,593 66,001
Income (Loss) Before Contributions (161,674) 434,859 877,270 (34,437) (287,292) 828,726
Transfers In (Note 5)- - - 256,822 444,324 701,146
Transfers Out (Note 5)- - (662,675) - (7,000) (669,675)
Change in Net Position (161,674) 434,859 214,595 222,385 150,032 860,197
Total Net Position - Beginning 1,815,731 - 1,938,141 4,604,445 10,714,407 19,072,724
Total Net Position - Ending 1,654,057$ 434,859$ 2,152,736$ 4,826,830$ 10,864,439$ 19,932,921
City of Auburn, Washington
COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION
INTERNAL SERVICE FUNDS
For the Year Ended December 31, 2014
City of Auburn: 2014 CAFR Fund Financial Statements and Schedules
142
Page 1 of 2
Insurance
Workers
Comp Self
Insurance Facilities
Information
Services
Equipment
Rental Total
CASH FLOWS FROM OPERATING ACTIVITIES:
Cash Received From Users -$ 797,549$ 3,511,162$ 4,912,732$ 2,936,058$ 12,157,501$ Cash Paid to Suppliers for Goods & Services (159,492) (245,057) (1,852,691) (2,413,489) (1,862,239) (6,532,968) Cash Paid for Taxes (3,481) - - (17) - (3,498) Cash Paid to Employees - (105,637) (758,733) (2,050,657) (822,855) (3,737,882)
Net Cash Provided (Used) By Operating Activities (162,973) 446,855 899,738 448,569 251,763 1,883,952
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:Operating Grant Received - - 2,354 - - 2,354
Other Non-Operating Revenue - - - 2,172 6,234 8,406
Transfers In - - - 256,822 444,324 701,146
Transfers Out - - (662,675) - (7,000) (669,675) Net Cash Provided (Used) by Non-Capital Financing Activities - - (660,321) 258,994 443,558 42,231
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES:Proceeds from Sale of Equipment - - - - 1,060 1,060 Purchase of Capital Assets - - - (649,628) (1,003,986) (1,653,614) Proceeds from Insurance Settlement - - - - 42,663 42,663
Net Cash Provided (Used) for Capital and Related Financing Activi - - - (649,628) (960,263) (1,609,891)
CASH FLOW FROM INVESTING ACTIVITIES:
Interest Received 1,205 230 2,081 3,366 5,475 12,357
Net Cash Provided (Used) in Investing Activities 1,205 230 2,081 3,366 5,475 12,357
Net Increase (Decrease) in Cash and Cash Equivalents (161,768) 447,085 241,498 61,301 (259,467) 328,649
Cash and Cash Equivalents - Beginning of Year 1,815,842 - 2,085,450 3,851,084 6,154,480 13,906,856
Cash and Cash Equivalents - End of Year 1,654,074$ 447,085$ 2,326,948$ 3,912,385$ 5,895,013$ 14,235,505$
CASH AT END OF YEAR CONSISTS OF:Cash and Cash Equivalents 1,654,074 447,085 2,326,948 3,912,385 5,895,013 14,235,505
Total Cash 1,654,074$ 447,085$ 2,326,948$ 3,912,385$ 5,895,013$ 14,235,505$
City of Auburn, Washington
COMBINING STATEMENT OF CASH FLOWS
INTERNAL SERVICE FUNDS
For the Fiscal Year Ended December 31, 2014
City of Auburn: 2014 CAFR Fund Financial Statements and Schedules
143
Page 2 of 2
Insurance
Workers Comp
Self Insurance Facilities
Information
Services
Equipment
Rental Total
RECONCILIATION OF NET OPERATING INCOME TO NEW CASH
PROVIDED BY OPERATING ACTIVITIES
Operating Income (Loss)(162,879)$ 434,629$ 872,835$ (39,975)$ (341,885)$ 762,725$
ADJUSTMENTS TO RECONCILE OPERATING INCOME TO
NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES:
Depreciation - - - 562,487 774,092 1,336,579
Asset (Increases) Decreases:
Accounts Receivable - - 9,803 (2,329) 1,055 8,529
Inventory - - - - (15,086) (15,086)
Liability Increases (Decreases):
Accounts & Vouchers Payable (94) 7,082 18,736 (120,606) (171,439) (266,321)
Wages & Benefits Payable - - (5,442) 46,921 3,868 45,347
Compensated Absences Payable - 5,144 6,006 2,071 1,158 14,379
Total Adjustments (94) 12,226 26,903 488,544 593,648 1,121,227
Net Cash Provided (Used) by Operating Activities (162,973)$ 446,855$ 899,738$ 448,569$ 251,763$ 1,883,952$
SCHEDULE OF NONCASH INVESTING, CAPITAL AND
FINANCING ACTIVITIES
Total Non Cash Investing, Capital and Financing Activities -$ -$ -$ -$ -$ -$
City of Auburn, Washington
COMBINING STATEMENT OF CASH FLOWS
INTERNAL SERVICE FUNDS
For the Fiscal Year Ended December 31, 2014
City of Auburn: 2014 CAFR Fund Financial Statements and Schedules
144
City of Auburn: 2014 CAFR Fund Financial Statements and Schedules
145
AGENCY FUNDS
The agency fund accounts for monies over which the City is strictly a short-term custodian. Agency
funds typically involve only the receipt, temporary investment, and remittance of fiduciary
resources to individuals, private organizations, or other governments.
City of Auburn: 2014 CAFR Fund Financial Statements and Schedules
146
Balance Balance
1/1/2014 Additions Deductions 12/31/2014
ASSETS:
Cash and Cash Equivalents 1,118,339$ 1,327,740$ 1,721,296$ 724,783$
Other Current Assets 4,758 120,833 125,123 468
Due from Other Governments 30,000 30,000 30,000 30,000
Total Assets 1,153,097$ 1,478,573$ 1,876,419$ 755,251$
LIABILITIES:
Due to Other Government Units 1,153,097 1,789,135 2,186,981 755,251
Total Liabilities 1,153,097$ 1,789,135$ 2,186,981$ 755,251$
City of Auburn, Washington
STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
AGENCY FUND
For the Fiscal Year Ended December 31, 2014
City of Auburn: 2014 CAFR Statistical Section
147
City of Auburn
STATISTICAL SECTION
December 31, 2014
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 .............................................................................................................. 148
Schedule 2 Changes in net position ...................................................................................................................... 149
Schedule 3 Fund balances, government funds..................................................................................................... 150
Schedule 4 Changes in fund balances, government funds ................................................................................... 151
Schedule 5 Tax revenues by source, government funds ...................................................................................... 152
Revenue Capacity Information
The objective of providing revenue capacity information is to help users understand and assess the factors affecting the
City’s ability to generate its most significant local source revenues.
Schedule 6 Assessed value by type ........................................................................................................................ 153
Schedule 7 Property tax data ................................................................................................................................ 154
Schedule 8 Property tax levies and collections .................................................................................................... 156
Schedule 9 Principal taxpayers-property taxes-sales taxes .................................................................................. 157
Schedule 10 Retail tax collections by sector .......................................................................................................... 158
Debt Capacity Information
Debt capacity information is intended to assist users to understand and assess the City’s current levels of outstanding debt
and ability to issue additional debt in the future.
Schedule 11 Ratios of outstanding debt by type ................................................................................................... 159
Schedule 12 Computation of legal debt margin ..................................................................................................... 160
Schedule 13 Legal debt margin ratios ..................................................................................................................... 160
Schedule 14 Computation of net direct and estimated overlapping debt............................................................. 161
Schedule 15 Ratios of net general bonded debt to assessed value .......................................................................162
Schedule 16 Pledged revenue bond coverages ..................................................................................................... 163
Demographic and Economic Information
These schedules offer demographic and economic information to assist users in understanding certain aspects of the
environment within which the City operates and to provide information that facilitates comparisons of financial statement
information over time and across governmental units.
Schedule 17 Population, income and housing trends ............................................................................................ 164
Schedule 18 Major employers ................................................................................................................................. 165
Operating Information
These schedules contain service and infrastructure data to help users understand how the information in the City’s financial
report relates to the services the City provides and the activities it performs.
Schedule 19 Staffing levels by department ............................................................................................................ 166
Schedule 20 Operating indicators by department ................................................................................................. 167
Schedule 21 Capital indicators by department ....................................................................................................... 168
Schedule 22 Utility customers by customer class .................................................................................................. 168
City of Auburn: 2014 CAFR Statistical Section
148
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Governmental activities:
Invested in capital assets, net of related debt 194,121,232$ 200,814,063$ 212,611,232$ 303,564,348$ 314,691,982$ 320,506,701$ 340,941,112$ 354,899,294$ 346,195,793$ 348,080,505$
Restricted 23,442,309 26,839,342 24,519,024 28,965,599 12,741,566 15,180,467 14,230,963 13,164,116 15,019,909 16,404,328
Unrestricted 24,095,336 24,148,157 26,774,107 25,955,501 43,754,879 46,734,364 45,250,090 43,245,050 47,426,352 51,898,566
Total governmental activities net position 241,658,877 251,801,562 263,904,363 358,485,448 371,188,427 382,421,532 400,422,165 411,308,460 408,642,054 416,383,399
Business-type activities:
Invested in capital assets, net of related debt 115,137,273 125,265,152 130,515,163 144,626,496 150,621,492 152,343,987 166,289,542 173,709,864 165,619,867 169,098,916
Restricted 2,238,611 6,987,485 1,227,395 933,914 2,071,219 4,107,128 4,153,982 4,719,058 16,839,589 14,115,610
Unrestricted 32,513,576 25,693,517 40,655,261 35,859,489 29,546,169 28,642,334 30,523,974 30,439,381 32,880,216 37,724,080
Total business-type activities net position 149,889,460 157,946,154 172,397,819 181,419,899 182,238,880 185,093,449 200,967,498 208,868,303 215,339,672 220,938,606
Primary government:
Invested in capital assets, net of related debt 309,258,505 326,079,215 343,126,395 448,190,844 465,313,474 472,850,688 507,230,654 528,609,158 511,815,660 517,179,421
Restricted 25,680,920 33,826,827 25,746,419 29,899,513 14,812,785 19,287,595 18,384,945 17,883,174 31,859,498 30,519,938
Unrestricted 56,608,912 49,841,674 67,429,368 61,814,990 73,301,048 75,376,698 75,774,064 73,684,431 80,306,568 89,622,646
Total primary government net position 391,548,337$ 409,747,716$ 436,302,182$ 539,905,347$ 553,427,307$ 567,514,981$ 601,389,663$ 620,176,763$ 623,981,726$ 637,322,005$
Source: City of Auburn, Finance Department
City of Auburn, Washington
SCHEDULE 1NET POSITION BY COMPONENTSLast Ten Fiscal Years
(Accrual Basis of Accounting)
City of Auburn: 2014 CAFR Statistical Section
149
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Expenses
Governmental activities:
General government 5,284,440$ 6,462,578$ 7,196,492$ 8,000,715$ 7,567,085$ 7,934,948$ 8,581,829$ 9,441,887$ 7,508,112$ 8,363,427$ Public safety 28,048,087 29,804,864 33,396,630 28,217,844 25,675,063 25,890,627 27,320,805 27,339,301 27,423,015 27,144,153
Transportation 7,956,286 7,619,268 8,077,154 12,974,861 11,471,167 11,989,752 12,123,615 15,736,610 14,861,834 16,150,877 Physical environment 2,209,652 2,418,543 3,269,334 3,096,696 3,327,836 2,498,539 2,327,911 2,535,877 2,699,301 2,976,461
Culture and recreation 5,324,543 5,729,431 6,539,281 6,271,924 7,561,569 7,307,270 7,606,584 8,310,210 9,184,289 11,094,524 Economic environment 1,919,780 1,848,988 2,400,031 2,608,980 3,000,257 2,499,631 3,135,984 2,914,335 2,346,025 2,751,869
Health and human services 602,726 763,156 416,456 776,224 527,029 578,247 619,172 633,175 510,285 622,374
Interest on long-term debt 188,945 203,180 163,916 226,651 408,471 1,809,322 1,685,055 2,336,960 3,795,024 3,615,211 Total governmental activities expenses 51,534,459 54,850,008 61,459,294 62,173,895 59,538,478 60,508,335 60,508,335 69,248,355 68,327,885 72,718,896
Business-type activities:Water 6,962,997 7,647,935 7,873,191 8,565,231 8,970,215 10,042,879 8,961,736 9,655,724 11,893,094 11,992,944
Sewer 12,044,330 11,878,252 13,974,607 14,479,299 16,569,297 17,794,958 18,852,402 19,680,724 21,584,215 23,026,216 Storm drainage 3,354,899 3,852,335 4,224,881 5,226,823 7,275,072 6,994,381 6,752,021 8,025,729 7,726,467 7,668,072
Solid waste 9,121,727 9,936,222 10,368,901 10,781,426 11,019,606 9,894,429 9,957,943 11,305,322 12,535,078 12,760,313
Golf course 1,032,733 1,020,070 1,576,126 1,958,703 1,909,758 1,844,108 1,903,836 1,912,174 1,933,597 - Non-major business-type activities 1,593,944 1,618,285 1,735,118 1,720,603 1,666,754 1,781,204 2,010,776 1,954,104 1,857,252 1,924,874
Total business-type activities expenses 34,110,630 35,953,099 39,752,824 42,732,085 47,410,702 48,351,960 48,351,960 52,533,777 57,529,703 57,372,419
Total primary government expenses 85,645,089$ 90,803,107$ 101,212,118$ 104,905,980$ 106,949,180$ 108,860,294$ 108,860,294$ 121,782,132$ 125,857,588$ 130,091,315$
Program revenuesGovernmental activities:
Charges for servicesGeneral Government 663,309$ 820,585$ 1,126,258$ 2,316,125$ 814,095$ 1,168,574$ 1,010,911$ 897,521$ 893,326$ 1,160,198$
Public Safety 2,109,284 2,514,867 3,100,973 2,674,777 2,854,530 2,938,942 3,867,013 1,016,191 2,103,823 2,273,903
Transportation 1,052,110 631,340 1,930,504 1,272,751 1,587,850 960,532 1,042,147 1,819,851 1,967,778 1,660,270 Physical Environment 244,766 436,503 576,539 257,780 147,996 86,306 103,590 36,766 398,564 276,632
Culture and Recreation 726,753 881,318 1,245,122 917,544 1,048,390 962,558 1,182,688 880,380 873,970 2,876,185 Economic Environment 3,169,262 2,590,763 2,070,534 1,638,579 1,654,692 1,732,397 2,294,916 3,266,188 3,586,844 3,087,853
Health and human services - - - - 989 449 7,528 - - - Total charges for services 7,965,484 7,875,376 10,049,930 9,077,556 8,108,542 7,849,758 7,849,758 7,916,897 9,824,305 11,335,041
Operating grants and contributions 2,445,913 2,714,324 2,923,968 2,567,788 3,001,401 3,022,835 1,724,711 3,560,707 1,967,252 1,333,652
Capital grants and contributions 11,162,241 5,174,350 9,213,115 94,905,563 12,806,049 10,702,132 19,730,140 17,835,784 5,955,062 6,001,230
Total governmental activities program revenues 21,573,638 15,764,050 22,187,013 106,550,907 23,915,992 21,574,725 29,304,609 29,313,388 17,746,619 18,669,923
Business-type activities:Charges for services 32,658,440 36,226,324 38,784,127 39,883,386 42,338,079 43,461,742 45,045,488 50,710,688 57,533,735 60,332,817
Operating grants and contributions 54,999 47,961 43,263 55,024 87,454 70,841 116,735 97,052 90,361 111,025 Capital grants and contributions 7,857,856 3,988,202 12,479,500 10,670,660 1,992,259 7,391,111 15,981,735 7,248,835 5,483,344 5,070,810
Total business-type activities program revenue 40,571,295 40,262,487 51,306,890 50,609,070 44,417,792 50,923,694 61,143,958 58,056,575 63,107,440 65,514,652 Total primary government program revenues 62,144,933 56,026,537 73,493,903 157,159,977 68,333,784 72,498,419 90,448,567 87,369,963 80,854,059 84,184,575
Net (expense)/revenueGovernmental activities (29,960,821) (39,085,958) (39,272,281) 44,377,012 (35,622,486) (38,933,610) (31,203,726) (39,934,967) (50,581,266) (54,048,973)
Business-type activities 6,460,665 4,309,388 11,554,066 7,876,985 (2,992,910) 2,571,734 12,791,998 5,522,798 5,577,737 8,142,233
Total primary government net expense (23,500,156)$ (34,776,570)$ (27,718,215)$ 52,253,997$ (38,615,396)$ (36,361,876)$ (18,411,728)$ (34,412,169)$ (45,003,529)$ (45,906,740)$
General revenues and other changes in net positionGovernmental activities:
Taxes:Property taxes 13,464,390$ 15,186,456$ 16,164,073$ 10,804,825$ 13,362,672$ 14,766,470$ 15,204,611$ 14,970,136$ 14,490,790$ 15,867,838$
Retail sales and use tax 16,333,169 17,784,374 18,958,484 17,620,661 14,727,496 15,657,081 16,213,244 16,679,278 18,335,157 19,744,684
Interfund utility taxes 1,792,136 1,983,652 2,095,901 2,507,213 3,437,526 2,788,083 2,948,297 3,281,816 3,892,250 4,068,667 Utility taxes 5,349,713 5,893,041 6,073,429 8,075,355 9,071,485 8,886,964 9,049,689 8,856,498 9,156,636 9,040,015
Excise taxes 4,633,037 4,568,549 3,862,692 3,477,517 2,310,076 1,389,030 1,859,738 2,141,620 2,555,850 2,888,797 Other taxes 1,796,224 1,859,428 2,005,836 2,949,430 4,607,584 4,622,138 4,644,909 4,679,333 4,429,090 4,601,925
Investment earnings 1,465,102 2,454,694 2,993,174 1,589,837 570,798 379,316 224,593 178,618 121,687 105,117 Miscellaneous 564,416 69,037 (406,847) 2,751,495 67,223 214,190 775,969 547,391 (4,625,627) 178,482
Transfers 194,286 (570,588) (371,660) 427,740 170,605 1,463,444 (483,107) (513,428) (218,230) 5,294,793
Total governmental activities 45,592,473 49,228,643 51,375,082 50,204,073 48,325,465 50,166,715 50,437,943 50,821,262 48,137,603 61,790,318 Business-type activities:
Investment earnings 895,870 1,574,444 2,098,417 1,242,363 312,618 158,211 101,694 82,903 68,400 51,261 Miscellaneous 2,124,658 1,602,274 427,522 330,472 3,669,878 1,588,068 2,584,004 1,781,676 763,717 2,700,233
Transfers (194,286) 570,588 371,660 (427,740) (170,605) (1,463,444) 483,107 513,428 218,230 (5,294,793) Total business-type activities:2,826,242 3,747,306 2,897,599 1,145,095 3,811,891 282,835 3,168,805 2,378,007 1,050,347 (2,543,299)
Total primary government 48,418,715$ 52,975,949$ 54,272,681$ 51,349,168$ 52,137,356$ 50,449,550$ 53,606,748$ 53,199,269$ 49,187,950$ 59,247,019$
Change in net position Before Change in Accounting Principle
Governmental activities 15,631,652 10,142,685 12,102,801 94,581,085 12,702,979 11,233,105 19,234,217 10,886,295 (2,443,663) 7,741,345
Business-type activities 9,286,907 8,056,694 14,451,665 9,022,080 818,981 2,854,569 15,960,803 7,900,805 6,628,084 5,598,934
Total primary government 24,918,559$ 18,199,379$ 26,554,466$ 103,603,165$ 13,521,960$ 14,087,674$ 35,195,020$ 18,787,100$ 4,184,421$ 13,340,279$
Change in Accounting PrincipleGovernmental activities - - - - - - - - (222,743) -
Business-type activities - - - - - - - - (156,715) - Total primary government -$ -$ -$ -$ -$ -$ -$ -$ (379,458)$ -$
Change in net position After Change in Accounting PrincipleGovernmental activities 15,631,652 10,142,685 12,102,801 94,581,085 12,702,979 11,233,105 19,234,217 10,886,295 (2,666,406) 7,741,345
Business-type activities 9,286,907 8,056,694 14,451,665 9,022,080 818,981 2,854,569 15,960,803 7,900,805 6,471,369 5,598,934 Total primary government 24,918,559$ 18,199,379$ 26,554,466$ 103,603,165$ 13,521,960$ 14,087,674$ 35,195,020$ 18,787,100$ 3,804,963$ 13,340,279$
Source: City of Auburn, Finance Department
City of Auburn, WashingtonSCHEDULE 2
CHANGES IN NET POSITIONLast Ten Fiscal Years
(Accrual Basis of Accounting)
City of Auburn: 2014 CAFR Statistical Section
150
2005 2006 2007 2008 2009 2010 2011 (1)2012 2013 2014
General Fund
Unreserved 15,938,825$ 14,448,328$ 14,462,720$ 13,071,091$ 13,237,851$ 15,382,354$ -$ -$ -$ -$
Nonspendable - 370,400 127 127
Assigned 7,082,130.0 5,935,567 5,892,611 4,045,598
Unassigned 14,193,365.0 17,395,933 17,751,778 20,914,093
Total General Fund 15,938,825 14,448,328 14,462,720 13,071,091 13,237,851 15,382,354 21,275,495 23,701,900 23,644,516 24,959,818
All other governmental funds
Reserved 1,375,591 1,376,798 1,501,033 1,507,565 1,538,038 1,592,378
Unreserved, Reported In:
Special Revenue Funds 8,967,039 10,738,431 13,124,661 14,463,370 15,184,058 15,486,918
Capital Projects Funds 13,111,273 14,727,423 9,873,331 12,990,032 10,422,360 12,589,604
Permanent Funds 232,832 188,524 170,983 144,396 153,503 132,717 Total Unreserved 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 1,536,316 1,574,148
Restricted 12,781,743 11,688,536 13,483,593 14,830,180
Committed 3,134,449 3,258,257 3,242,662 5,066,181
Assigned 3,120,372 2,388,684 4,976,833 4,725,119 Total All Other Governmental Funds 23,686,735$ 27,031,176$ 24,670,008$ 29,105,363$ 27,297,959$ 29,801,617$ 20,490,104$ 18,811,057$ 23,239,404$ 26,195,628$
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 3
FUND BALANCES, GOVERNMENT FUNDSLast Ten Fiscal Years
(Modified Accrual Basis of Accounting)
City of Auburn: 2014 CAFR Statistical Section
151
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
RevenuesTaxes 41,467,853$ 44,867,161$ 46,721,651$ 43,781,530$ 42,514,006$ 43,069,695$ 44,812,975$ 46,003,582$ 48,545,041$ 51,718,489$
Licenses and permits 2,227,963 1,683,320 1,606,950 1,110,722 1,326,875 1,311,916 1,769,516 2,344,643 3,041,948 2,400,662
Intergovernmental 6,826,222 6,831,240 5,766,484 8,369,888 9,616,067 9,656,529 16,174,149 20,045,299 11,854,984 9,379,699
Charges for services 3,939,610 3,659,773 5,017,224 3,784,544 3,473,199 3,073,168 2,938,815 4,006,762 3,891,776 5,717,712
Fines and forfeits 777,241 1,054,201 2,155,120 2,059,771 1,911,034 2,472,411 1,940,326 1,592,957 1,441,603 1,258,408
Special assessments 153,627 75,574 52,291 57,402 107,597 43,502 32,972 39,115 40,772 472,800
Investment earnings 1,175,258 1,477,368 2,456,291 1,363,375 484,696 386,890 237,056 200,826 144,151 135,709 Miscellaneous 1,247,252 1,865,079 877,473 1,296,349 1,142,428 3,023,589 2,322,580 871,191 621,673 1,691,274
Total revenues 57,815,026 61,513,716 64,653,484 61,823,581 60,575,902 63,037,699 70,228,389 75,104,375 69,581,948 72,774,753
Expenditures
General government 5,308,663 6,062,037 6,834,084 7,719,205 7,864,410 7,770,957 8,310,037 8,761,452 7,300,667 7,712,018
Public safety 27,169,657 29,148,278 33,568,753 26,023,912 25,762,116 24,597,986 27,399,406 24,039,435 27,146,590 27,264,294
Transportation 10,337,587 9,403,147 7,385,929 8,910,967 9,850,579 10,054,434 16,059,156 20,766,134 15,119,530 8,979,583 Physical environment 2,191,796 2,435,201 3,352,466 3,490,636 3,192,089 2,480,641 2,290,328 2,526,526 2,855,908 3,086,738
Economic environment 1,877,675 1,928,978 2,142,282 2,530,827 3,028,684 2,597,849 3,138,590 2,876,558 2,692,389 2,783,898
Health and human services 602,726 763,156 416,456 776,224 527,029 568,911 616,717 616,583 631,997 626,681
Culture and recreation 4,815,643 5,016,554 6,571,275 6,296,743 6,622,546 6,663,881 6,918,623 7,228,345 7,925,325 9,759,110
Capital outlay (1)507,484 3,822,895 7,346,316 4,778,334 30,338,508 8,486,382 8,597,944 4,007,018 2,746,599 3,394,886 Debt service:
Principal 10,582,246 420,631 435,093 456,655 479,661 26,683,671 1,208,512 1,219,137 2,238,181 2,704,468
Interest / other 315,960 247,551 203,266 264,997 296,241 1,775,746 1,761,334 2,245,858 2,709,768 2,892,281
Total expenditures 63,709,437 59,248,428 68,255,920 61,248,500 87,961,863 91,680,457 76,300,647 74,287,046 71,366,954 69,203,957
Excess of revenues
over (under) expenditures (5,894,411) 2,265,288 (3,602,436) 575,081 (27,385,961) (28,642,758) (6,072,258) 817,329 (1,785,006) 3,570,796
Other financing sources (uses)Transfers in 9,753,294 8,873,200 6,103,144 7,386,082 6,994,306 9,442,727 7,410,926 6,643,116 4,776,100 5,309,769
Transfers out (11,703,804) (9,554,816) (5,542,988) (7,993,842) (6,997,801) (7,745,568) (6,242,333) (7,005,097) (4,450,925) (5,003,448)
Capital leases - - 695,504 17,728 24,549,186 - - - - -
Insurance recoveries - - - - 114,607 200,642 154,200 291,210 192,898 136,585
Issuance of debt - 142,313 - 360,000 957,278 31,172,273 - - 3,044,491 240,366 Issuance of refunding bond - - - - - 2,150,000 - - - -
Debt Premium - - - - - 305,844 - - - -
Payment to escrow agent - refunded bon - - - - - (2,235,000) - - - -
Sales of capital assets 811,353 127,959 - 2,698,677 127,741 - 1,331,092 800 2,593,405 17,458
Total other financing sources (uses)(1,139,157) (411,344) 1,255,660 2,468,645 25,745,317 33,290,918 2,653,885 (69,971) 6,155,969 700,730
Net change in fund balances (7,033,568)$ 1,853,944$ (2,346,776)$ 3,043,726$ (1,640,644)$ 4,648,159$ (3,418,373)$ 747,358$ 4,370,963$ 4,271,526$
Debt service as a percentage of noncapita 19.81%1.39%1.12%1.42%1.54%37.50%5.44%6.64%8.71%10.68%
expenditures
1)Capital outlay reported in governmental funds for 2014 are $3,394,886 plus $5,074,611 which is reported for each functional
activity with the other funds results in total capital outlay of $8,469,497 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 4
CHANGES IN FUND BALANCES, GOVERNMENT FUNDSLast Ten Fiscal Years
(Modified Accrual Basisi of Accouting)
City of Auburn: 2014 CAFR Statistical Section
152
Fiscal Sales Interfund
Year Property & Use Utility Utility Excise Other Total
2005 13,319,740 16,333,169 1,792,136 5,349,713 4,633,037 40,058 41,467,853
2006 14,582,829 17,784,374 1,983,652 5,893,041 4,568,549 54,716 44,867,161
2007 15,666,016 18,958,484 2,095,901 6,073,429 3,862,692 65,129 46,721,651
2008 12,040,124 17,620,661 2,507,213 8,075,355 3,477,517 60,660 43,781,530
2009 12,914,943 14,727,496 3,437,526 9,071,485 2,310,076 52,480 42,514,006
2010 14,283,303 15,657,081 2,788,083 8,886,964 1,389,030 65,234 43,069,695
2011 14,683,329 16,213,244 2,948,297 9,049,689 1,859,738 58,678 44,812,975
2012 14,987,636 16,679,278 3,281,816 8,856,498 2,141,620 56,734 46,003,582
2013 14,535,673 18,335,157 3,892,250 9,156,636 2,555,850 69,475 48,545,041
2014 15,933,338 19,744,684 4,068,667 9,040,015 2,888,797 42,988 51,718,489
Change
2005-2014 19.6%20.9%127.0%69.0%-37.6%7.3%24.7%
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
$60,000
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Th
o
u
s
a
n
d
s
Figure 5: Tax Revenues by Source
2005-2014
Excise & other
Utility
Interfund utility
Sales & use
Property
City of Auburn: 2014 CAFR Statistical Section
153
State Total Total
Fiscal Property Personal Land and Assessed Direct
Year and Other Property Building Value Rate
2005 116,895 623,298 4,359,276 5,099,469 2.87
2006 101,419 607,875 5,055,734 5,765,028 2.73
2007 107,302 635,352 5,783,641 6,526,295 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
2013 124,230 745,891 6,098,598 6,968,719 2.10
2014 132,854 880,015 6,409,300 7,422,169 2.17
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
King County data came from Hazel Gantz. Pierce County data came from Kim Fleshman.
(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
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Figure 6: Assessed Value by Type 2005 - 2014
State property
Personal property
Land and building
City of Auburn: 2014 CAFR Statistical Section
154
$1.00
$1.50
$2.00
$2.50
$3.00
2005 2006 2007 2008(2)2009 2010 2011 2012 2013 2014
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 Rates
2005 -2014
Page 1 of 2
Item 2005 2006 2007 2008 (2)
Assessed and estimated actual values (1)
Estimated and actual value (in thousands)5,099,469$ 5,765,028$ 6,526,295$ 6,556,690$
Assessed value (in thousands)5,099,469 5,765,028 6,526,295 6,556,690
Ratio of assessed to actual 100%100%100%100%
Property tax rates (1)
Direct regular and special
General fund 2.86520$ 2.73076$ 1.48385$ 1.48385$
Debt service funds - - - -
Subtotal 2.86520 2.73076 1.48385 1.48385
Overlapping regular and special (1)
Auburn School District 5.37195$ 4.94903$ 4.40970$ 4.40970$
King County 1.38229 1.28956 1.20770 1.20770
State of Washington 2.68951 2.32535 2.13233 2.13233
Port of Seattle 0.25321 0.23158 0.22359 0.22359
Emergency Medical Services 0.23182 0.20621 0.30000 0.30000
Hospital District 0.09039 0.55652 0.50854 0.50854
King County Library District 0.53255 0.50027 0.45336 0.45336
Valley Regional Fire Authority - - 1.00000 1.00000
King County Flood Zone - - 0.10000 0.10000
King County Ferry District - - 0.05500 0.05500
Subtotal 10.55172 10.05852 10.39022 10.39022
Total direct and overlapping 13.41692$ 12.78928$ 11.87407$ 11.87407$
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 $1.48 is due to the incorporation of the Valley
Regional Fire Authority effective 1/1/2007. The VRFA will assess its own property tax levy
in 2008, partially offsetting what was previously levied by the City.
City of Auburn, Washington
SCHEDULE 7
PROPERTY TAX DATA
Last Ten Fiscal Years
City of Auburn: 2014 CAFR Statistical Section
155
Page 2 of 2
2009 2010 2011 2012 2013 2014
8,723,864$ 7,765,878$ 7,564,507$ 7,225,550$ 6,968,719$ 7,422,169$
8,723,864 7,765,878 7,564,507 7,225,550 6,968,719 7,422,169
100%100%100%100%100%100%
1.48678$ 1.82336$ 1.93458$ 2.07527$ 2.10000$ 2.16739$
- - - - - -
1.48678 1.82336 1.93458 2.07527 2.10000 2.16739
4.37709$ 5.09382$ 5.99562$ 6.14004$ 6.62190$ 6.50262$
1.09772 1.28499 1.33816 1.41588 1.54051 1.51605
1.96268 2.22253 2.27990 2.42266 2.56720 2.47044
0.19700 0.21597 0.22366 0.22982 0.23324 0.21533
0.27404 0.30000 0.30000 0.30000 0.30000 0.33500
0.47141 0.53290 0.55753 0.50000 0.50000 0.50000
0.41736 0.48526 0.56621 0.56992 0.56743 0.56175
1.10995 1.17910 1.17977 1.18925 1.20479 1.20294
0.91230 0.10514 0.10976 0.11616 0.13210 0.15369
0.05018 0.00348 0.00360 0.00372 0.00378 0.00349
10.86973 11.42319 12.55421 12.88745 13.67095 13.46131
12.35651$ 13.24655$ 14.48879$ 14.96272$ 15.77095$ 15.62870$
$0.00
$2.00
$4.00
$6.00
$8.00
$10.00
$12.00
$14.00
2005 2006 2007 2008
(2)2009 2010 2011 2012 2013 2014
Do
l
l
a
r
s
(R
a
t
e
P
e
r
T
h
o
u
s
a
n
d
)
Figure 7b: Property Tax Rates
Last Ten Fiscal Years
Hospital District
King County Ferry District
King County Flood Zone
Valley Regional Fire Authority
King County Library District
Emergency Medical Services
Port of Seattle
State of Washington
King County
Auburn School District
City of Auburn: 2014 CAFR Statistical Section
156
Total Tax Collections
Fiscal Levy for in Subsequent Current Year
Year Fiscal Year Amount % of Levy Years Amount % of Levy Levy Balance
King County:
2005 12,635,747 12,393,241$ 98.1%243,409 12,636,650$ 100.0%(903)$
2006 13,399,723 13,164,248 98.2%234,729 13,398,977 100.0%746
2007 13,843,719 13,605,301 98.3%237,182 13,842,483 100.0%1,236
2008 9,559,885 9,406,398 98.4%143,452 9,549,850 99.9%10,034
2009 11,667,619 11,390,684 97.6%273,054 11,663,738 100.0%3,880
2010 12,714,321 12,459,564 98.0%248,554 12,708,118 100.0%6,203
2011 13,071,563 12,846,996 98.3%217,819 13,064,814 99.9%6,749
2012 13,393,350 13,167,731 98.3%186,768 13,354,499 99.7%38,851
2013 12,894,799 12,673,712 98.3%158,170 12,831,882 99.5%62,918
2014 14,175,002 13,970,560 98.6%- 13,970,560 98.6%204,442
334,157$
Pierce County:
2005 783,135 769,223$ 98.2%13,911 783,134$ 100.0%0$
2006 1,242,038 1,220,642 98.3%21,376 1,242,018 100.0%20
2007 1,851,622 1,816,706 98.1%34,876 1,851,582 100.0%40
2008 1,226,764 1,177,665 96.0%49,073 1,226,738 100.0%26
2009 1,264,380 1,223,668 96.8%40,688 1,264,356 100.0%25
2010 1,489,759 1,451,377 97.4%38,352 1,489,729 100.0%30
2011 1,425,411 1,401,537 98.3%23,767 1,425,304 100.0%107
2012 1,495,420 1,478,223 98.9%16,475 1,494,698 100.0%722
2013 1,484,398 1,471,129 99.1%9,562 1,480,691 99.8%3,707
2014 1,595,567 1,586,010 99.4%- 1,586,010 99.4%9,556 14,233$
Total current levy balance 348,391$
Source: King County Finance and Business Operations Division
Pierce County Budget and Finance Department
Fiscal Year of the Levy Total Collections to Date
City of Auburn, Washington
SCHEDULE 8
PROPERTY TAX LEVIES AND COLLECTIONS
Last Ten Fiscal Years
Collected Within the
95.0%
95.5%
96.0%
96.5%
97.0%
97.5%
98.0%
98.5%
99.0%
99.5%
100.0%
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
FIGURE 8: TEN YEARS COLLECTION OF LEVIED PROPERTY TAXES
Last Ten Fiscal Years
Collection percentagewithin the fiscal year ofthe levy
Total collectionpercentage
City of Auburn: 2014 CAFR Statistical Section
157
Percentage Percentage
of Total City of Total City
Assessed Taxable Assessed TaxableTaxpayerValueRankAssessed Value Value Rank Assessed Value
Boeing Company 611,988,779$ 1 8.25%443,158,585$ 1 8.69%
Glimcher Supermall Venture 86,951,812 2 1.17%91,787,840 3 1.80%
Safeway 74,933,312 3 1.01%126,219,866 2 2.48%
EPropertyTax Inc.74,754,500 4 1.01%65,348,900 4 1.28%
Puget Sound Energy 69,112,597 5 0.93%53,200,729 5 1.04%
Muckleshoot Indian Tribe 54,917,400 6 0.74%52,900,500 6 1.04%
Belara Communities LLC 54,061,800 7 0.73%
PPF Industrial (formerly UPS Supply Chain Solutions 43,081,100 8 0.58%41,020,600 8 0.80%
Wal-Mart Property 32,203,327 9 0.43%
Four Lakes Apartments LLC 29,323,400 10 0.40%
Complex Property Advisors Corporation 52,600,733 7 1.03%
Qwest Corporation 21,647,084 9 0.42%
Roundup Co. (Fred Meyer)18,934,404 10 0.37%
TOTALS 1,131,328,027$ 15.24%966,819,241$ 18.96%
Source: King County and Pierce County Departments of Assessments
Total assessed value for 2014:7,422,168,137$
Total assessed value for 2005:5,099,469,000$
2014 2005
City of Auburn, Washington
SCHEDULE 9a
PRINCIPAL TAXPAYERS-PROPERTY TAXES
Current Year and Nine Years Ago
0%
5%
10%
15%
20%
25%
2005 2014
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%
2005 2014
FIGURE 9a-2: TOP 10 TAXPAYERS ASSESSED VALUE
AS A PERCENTAGE OF TOTAL ASSESSED VALUECurrent Year and Nine Years Ago
Percentage Percentage
Sales of Total City Sales of Total City
Tax Sales Taxes Tax Sales Taxes
Received Sector (1)Rank Received Received Sector (1)Rank Received
806,869$ Transportation Manufacturing 1 5.2%435,215$ Distribution 1 2.7%
449,536 General Merchandise Store 2 2.9%403,010 General Retail 2 2.5%
386,983 Automotive 3 2.5%387,389 Automotive 3 2.4%
360,318 Automotive 4 2.3%296,909 General Retail 4 1.8%
323,393 Automotive 5 2.1%273,091 Automotive 5 1.7%
287,739 Automotive 6 1.8%258,319 Automotive 6 1.6%
283,004 Construction 7 1.8%256,941 Automotive 7 1.6%
242,936 General Merchandise Store 8 1.6%232,726 General Retail 8 1.4%
219,040 Automotive 9 1.4%219,434 General Retail 9 1.3%
205,857 Bldg. Material & Garden 10 1.3%205,958 Distribution 10 1.3%
3,565,675$ 22.8%2,968,992$ 18.2%
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
2014 2005
City of Auburn, Washington
SCHEDULE 9b
PRINCIPAL TAXPAYERS-SALES TAXES
Current Year and Ten Years Ago
City of Auburn: 2014 CAFR Statistical Section
158
$0
$2,000
$4,000
$6,000
$8,000
$10,000
$12,000
$14,000
$16,000
$18,000
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
(T
h
o
u
s
a
n
d
s
)
FIGURE 10: RETAIL TAX COLLECTIONS
City of Auburn: 2005 -2014
Other
Wholesaling
Manufacturing
Contracting
Services
Other Retail
Automotive
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
RETAIL TRADE SECTOR
Automotive/gas 3,326$ 3,428$ 3,643$ 3,255$ 2,559$ 2,553$ 2,785$ 3,019$ 3,136$ 3,309$
Furniture 218 263 268 241 220 194 218 226 235 254
Electronics & appliances 451 288 262 242 132 121 127 145 174 237
Building materials 488 594 615 521 358 389 383 425 447 502
Food stores 358 346 378 360 352 354 331 341 335 353
Health & personal care 120 130 143 152 150 144 148 149 174 188
Apparel 836 874 899 873 781 752 754 772 889 1,009
General merchandise 970 941 974 872 833 801 968 967 974 955
Misc retail trade 724 939 1,334 1,234 755 834 851 897 990 1,182
7,491 7,803 8,516 7,750 6,140 6,142 6,566 6,943 7,354 7,989
SERVICE SECTOR
Information 506 507 531 489 457 979 481 396 446 487
Finance & insurance 86 84 85 85 83 68 66 53 91 88
Real estate, rental, leasaing 294 311 330 394 304 288 304 326 279 315
Professional, scientific, technical 119 116 162 146 200 191 175 173 184 216
Administrative, supply & remediation services 197 195 301 261 261 239 295 334 336 350
Educational 81 81 87 91 42 56 53 54 50 49
Healthcare & social serivces 45 33 88 98 61 37 41 115 33 66
Arts & entertainment 104 126 172 171 147 154 149 153 149 158
Accomodation & food service 764 833 870 915 827 806 839 921 979 1,067
Other services 477 492 502 457 485 493 482 530 507 526
2,673 2,779 3,128 3,107 2,867 3,310 2,882 3,056 3,054 3,322
OTHER SECTORS
Construction 2,008 2,453 2,240 1,647 1,368 1,322 1,296 1,221 1,943 1,754
Manufacturing 414 486 625 643 383 411 583 405 624 1,163
Transportation 31 26 22 76 31 29 77 55 46 71
Wholesaling 2,313 2,571 2,943 2,306 1,073 1,180 1,260 1,297 1,279 1,205
Other business 73 72 143 72 47 128 224 61 64 120
Subtotal - other sectors 4,839 5,607 5,973 4,744 2,902 3,071 3,439 3,038 3,956 4,312
GRAND TOTAL 15,003$ 16,189$ 17,617$ 15,601$ 11,909$ 12,523$ 12,887$ 13,037$ 14,364$ 15,623$
OVERLAPPING SALES TAX RATES
Basic sales tax rates
City of Auburn 0.85%0.85%0.85%0.85%0.85%0.85%0.85%0.85%0.85%0.85%
Washington State 6.50%6.50%6.50%6.50%6.50%6.50%6.50%6.50%6.50%6.50%
King County 0.15%0.15%0.15%0.25%0.25%0.25%0.25%0.25%0.25%0.25%
Regional Transit Authority 0.40%0.40%0.40%0.40%0.90%0.90%0.90%0.90%0.90%0.90%
Metro 0.80%0.80%0.90%0.90%0.90%0.90%0.90%0.90%0.90%0.90%
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%8.90%9.00%9.50%9.50%9.50%9.50%9.50%9.50%
Special sales tax rates
Restaurants-for stadium funding (1)0.50%0.50%0.50%0.50%0.50%0.50%0.50%0.00%0.00%0.00%
Motor vehicles-for multimodal transportation 0.30%0.30%0.30%0.30%0.30%0.30%0.30%0.30%0.30%0.30%
(1) This tax expired on October 1, 2011
Source: City of Auburn Finance Department and State of Washington
(Amounts Expressed in Thousands)
City of Auburn, Washington
SCHEDULE 10
RETAIL TAX COLLECTIONS BY SECTOR
Last Ten Fiscal Years
City of Auburn: 2014 CAFR Statistical Section
159
-
300
600
900
1,200
1,500
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
FIGURE 11: PER CAPITA DEBT
Last Ten Fiscal Years
General Special Public Works Total Percentage
Fiscal Obligation Assessment Capital Revenue Trust Fund Primary of Personal Per
Year Bonds Bonds Leases Bonds Loans Government Income (1)Capita
2005 6,478,000$ 132,354$ -$ 7,020,000$ 8,679,509$ 22,309,863$ 2.68%469.98
2006 11,210,000 36,827 - 5,905,000 9,853,410 27,005,237 3.04%551.63
2007 10,650,000 36,827 663,553 4,730,000 10,149,419 26,229,799 2.77%519.71
2008 10,053,000 36,827 646,799 3,495,000 9,730,324 23,961,950 1.82%357.61
2009 36,160,850 36,827 25,193,600 2,200,000 10,014,943 73,606,220 4.11%1,090.70
2010 64,816,850 - 604,685 23,220,000 10,296,024 98,937,559 5.35%1,449.21
2011 63,430,850 - 566,212 22,930,000 9,491,810 96,418,872 5.07%1,363.68
2012 61,900,771 - 524,498 23,057,333 8,687,599 94,170,201 5.05%1,321.87
2013 59,568,505 - 480,771 34,292,569 12,442,903 106,784,748 5.57%1,458.11
2014 57,367,766 - 435,068 32,813,473 11,808,711 102,425,018 5.12%1,372.44
Source: City of Auburn, Finance Department
(1) Personal income data provided by US Census Bureau estimate for 2013, 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
City of Auburn: 2014 CAFR Statistical Section
160
Parks and Utility Total
Councilmanic Excess Levy Open Spaces Purpose Capacity
December 31, 2014 - Total Assessed Value:
8,238,289,417$
2.5% of Assessed Value -$ 205,957,235$ 205,957,235$ 205,957,235$ 617,871,705$
1.5% of Assessed Value 123,574,341 (123,574,341) - - -
Statutory Debt Limit 123,574,341 82,382,894 205,957,235 205,957,235 617,871,705
Debt Outstanding 61,892,041 - - - 61,892,041
Net Debt Outstanding 61,892,041 - - - 61,892,041
Remaining Debt Capacity 61,682,300$ 82,382,894$ 205,957,235$ 205,957,235$ 555,979,664$
General Capacity Special Purpose Capacity
City of Auburn, Washington
SCHEDULE 12
COMPUTATION OF LEGAL DEBT MARGIN
As of December 31, 2014
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Debt Limit 350,782$ 432,377$ 489,472$ 653,979$ 577,669$ 565,822$ 539,989$ 518,188$ 546,602$ 617,872$
Total net debt
applicable to limit 17,055 11,352 10,757 10,771 62,671 66,868 65,364 63,815 64,047 61,892
Legal debt margin 333,727$ 421,025$ 478,715$ 643,208$ 514,998$ 498,954$ 474,625$ 454,372$ 482,554$ 555,980$
Total net debt
applicable to the limit
as a percentage of debt limit 4.86%2.63%2.20%1.65%10.85%11.82%12.10%12.32%11.72%10.02%
City of Auburn, Washington
SCHEDULE 13
LEGAL DEBT MARGIN RATIOSLast Ten Fiscal Years
(Expressed in Thousands)
City of Auburn: 2014 CAFR Statistical Section
161
Net Debt Percent Bonded Amount
Outstanding Applicable (3)Applicable
Net direct debt:
Net direct debt - City of Auburn (1)60,755,459$
Estimated net overlapping debt: (2)
King County 796,669,841$ 1.93%15,375,728$
Port of Seattle 225,420,000 1.93%4,350,606
School District No. 210 180,621,765 2.34%4,226,549
School District No. 408 162,285,000 78.57%127,507,325
School District No. 415 161,158,113 1.27%2,046,708
Rural Library District 118,264,183 3.29%3,890,892
Valley Regional Fire Authority 15,480,000 89.97%13,927,356
Pierce County 171,102,977 0.95%1,625,478
Total estimated net overlapping debt 172,950,642
Total direct and overlapping debt 233,706,101$
Sources:
(1) City of Auburn finance department; includes both bonded and non bonded debt related to government activities
(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, 2014
City of Auburn, Washington
SCHEDULE 14
City of Auburn: 2014 CAFR Statistical Section
162
$0
$200
$400
$600
$800
$1,000
-
0.0020
0.0040
0.0060
0.0080
0.0100
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
De
b
t
/
A
s
s
e
s
s
e
d
V
a
l
u
e
Year
FIGURE 15: BONDED DEBT RATIOS
Last Ten Fiscal Years
Debt/AV Debt/Pop
Ratio
of Net
Debt Net Bonded Net
Assessed Net Service Bonded Debt to Bonded
Fiscal Value (1)Bonded Amount (3)Debt Assessed Debt per
Year Population (Thousands) Debt (2)Available (Thousands)Value Capita
2005 47,470 5,099,469 6,478,000$ 14,256$ 6,464$ 0.13%136$
2006 48,955 5,765,028 11,210,000 25,372 11,185 0.19%229
2007 50,470 6,526,295 10,650,000 35,810 10,614 0.16%211
2008 67,005 6,556,690 10,053,000 41,603 10,011 0.15%150
2009 67,485 8,723,864 36,160,850 37,746 36,123 0.41%536
2010 68,270 7,765,878 64,816,850 46,058 64,771 0.83%949
2011 70,705 7,564,507 63,430,850 45,754 63,385 0.84%897
2012 71,240 7,225,550 61,900,771 46,155 61,855 0.86%869
2013 73,235 6,968,719 59,568,505 - 59,569 0.85%813
2014 74,630 7,422,169 57,367,766 - 57,368 0.77%769
Notes:
(1) From Schedule 6
(2) Amount includes both bonded and non bonded debt related to government activities
(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
City of Auburn: 2014 CAFR Statistical Section
163
$0
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
YEAR
FIGURE 16: UTILITY BOND COVERAGES
Last Ten Fiscal Years
Net revenue available Debt service requirements
Direct(2)Debt Service Requirements
Gross (1)Operating Net Revenue Times
Year Revenue Expense Available Principal Interest Total (3)Coverage
2005 24,562,487 18,078,747 6,483,740$ 1,800,568$ 417,834$ 2,218,402$ 2.92
2006 27,087,351 19,615,315 7,472,036 1,718,412 333,016 2,051,428 3.64
2007 27,492,779 21,237,294 6,255,485 1,914,523 281,065 2,195,588 2.85
2008 27,665,498 23,149,802 4,515,696 1,942,938 279,765 2,222,703 2.03
2009 31,265,941 27,314,611 3,951,330 2,002,938 217,283 2,220,221 1.78
2010 33,115,398 28,749,877 4,365,520 1,056,094 150,675 1,206,769 3.62
2011 34,909,200 29,201,088 5,708,112 1,013,830 1,248,612 2,262,442 2.52
2012 38,119,472 30,974,506 7,144,966 1,028,830 1,277,285 2,306,115 3.10
2013 42,406,722 36,406,640 6,000,082 1,943,830 1,508,405 3,452,235 1.74
2014 46,900,016 35,502,812 11,397,204 2,197,667 1,599,347 3,797,014 3.00
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
City of Auburn: 2014 CAFR Statistical Section
164
0
20,000
40,000
60,000
80,000
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
FIGURE 17: POPULATION AND HOUSING TRENDS
Last Ten Fiscal Years
Population Total housing units
Item 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
School enrollment (1)13,760 14,367 14,559 14,716 14,589 14,482 14,363 14,596 14,971 15,248
Rate of unemployment (2)5.4%4.8%4.2%5.5%9.5%9.6%8.7%7.7%6.0%5.3%
Population (3)47,470 48,955 50,470 67,005 67,485 68,270 70,705 71,240 73,235 74,630
Personal income (thousands of dollars) (4)1,247,566$ 1,342,818$ 1,444,871$ 2,024,087$ 1,989,661$ 1,848,752$ 1,901,540$ 1,871,973$ 1,917,219$ 2,000,606$
Per capita personal income (4)26,281$ 27,430$ 28,628$ 30,208$ 29,483$ 27,080$ 26,894$ 26,277$ 26,179$ 26,807$
Housing units (5)
One unit 9,105 9,402 9,625 14,186 14,235 14,333 14,823 14,957 15,393 15,804
Two or more 8,655 8,943 9,623 10,375 10,391 10,426 10,592 10,631 10,841 10,841
Mobile home or special 2,346 2,407 2,382 2,761 2,782 2,794 2,635 2,618 2,630 2,631
Total housing units 20,106 20,752 21,630 27,322 27,408 27,553 28,050 28,206 28,864 29,276
Sources:
(1) Auburn School District No. 408(2) Bureau of Labor Statistics
(3) WA State Office of Financial Management
(4) US Census Bureau
(5) Office of Financial Management
City of Auburn, Washington
SCHEDULE 17
POPULATION, INCOME AND HOUSING TRENDSLast Ten Fiscal Years
City of Auburn: 2014 CAFR Statistical Section
165
0%
20%
40%
60%
80%
100%
2005 2014
FIGURE 18a: AUBURN EMPLOYMENT BASE
PERCENTAGE OF TOP EMPLOYER COMPARED TO ALL
EMPLOYERS
Last Ten Fiscal Years
Top employer
All employers
0%
20%
40%
60%
80%
100%
2005 2014
FIGURE 18b: AUBURN EMPLOYMENT BASE PERCENTAGE OF TOP 10 EMPLOYERS COMPARED TO
ALL EMPLOYERS
Last Ten Fiscal Years
Top 10employers
Percentage Percentage
of Total City of Total City
Employer Product/service Employees Rank Employment Employees Rank Employment
The Boeing Company Aerospace 6,100 1 17.3%4,200 1 11.7%
The Outlet Collection Retail 3,200 2 9.1%
Auburn School District Education 2,373 3 6.7%1,995 3 5.5%
Muckleshoot Tribal Enterprises Gaming 1,643 4 4.6%2,100 2 5.8%
Green River Community College Education 1,121 5 3.2%850 4 2.4%
Emerald Downs Racetrack Horse racing 1,144 6 3.2%500 8 1.4%
Multicare Auburn Medical Center*Hospital 1,106 7 3.1%625 5 1.7%
Safeway Distribution Center Distribution Center 905 8 2.6%
Social Security Administration Gov't / public offices 650 9 1.8%600 6 1.7%
Zones, Inc.Technology reseller 600 10 1.7%500 9 1.4%
Certainteed Corporation Construction - 575 7 1.6%
City of Auburn City government 455 10 1.3%
TOTALS 18,842 53.3%12,400 34.5%
Sources: WA Employment Security Department
* Was previously Auburn Regional Medical Center.
2014 - City of Auburn, Economic Development 2005 - City of Auburn, 2005 CAFR
2014 2005
City of Auburn, Washington
SCHEDULE 18
MAJOR EMPLOYERS
Current Year and Nine Years Ago
City of Auburn: 2014 CAFR Statistical Section
166
-
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
2005
2006
2007
2008
2009
2010(3)
2011
2012
2013
2014
Department 2005 2006 2007 2008 2009 2010(3)2011 2012 2013 2014
Mayor 8 10 11 12 12 10 10 7 7 3
Administration (5)- - - - - - - - - 8
Human Resources 7 15 17 18 9 7 7 8 8 8
Finance 21 23 24 25 25 21 22 22 23 23
Municipal Court (4)14 15 17 21 21 17 19 - - -
Legal 13 13 14 16 16 13 13 13 13 14
Community Development (6)32 25 29 34 34 24 24 28 29 25
Police 117 118 121 152 152 131 118 122 125 126
Fire (1)82 82 - - - - - - - -
Public works 48 48 54 63 63 43 43 43 48 49
Parks, Arts and Recreation (7 36 36 38 40 40 35 36 36 36 45
Street 11 11 15 14 14 12 19 19 19 19
Water 16 16 19 20 20 22 22 22 22 24
Sewer 8 8 11 11 11 11 12 11 10 10
Storm Drainage 9 9 12 16 17 16 10 10 10 10
Solid Waste 2 2 2 2 2 2 2 2 2 2
Cemetery 6 6 7 7 7 7 7 7 5 5
Golf Course (7)6 6 9 9 9 8 8 8 8 -
Facilities (2)- - - - 10 10 10 9 9 9
Multi-Media (8)- - - - - - - - - 4
Innovation & Technology 10 11 15 18 18 14 14 18 18 15
Equipment Rental 10 9 9 10 11 6 6 7 10 12
TOTAL 456 463 424 488 490 408 401 391 402 411
Source: City of Auburn Finance Department
(1)
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 eliminated 82.5 of the total 490 positions in 2010.
(4)In 2012, the City contracted out the Municipal Court to the King County District Court - resulting in a reduction of
19 positions.
(5)In 2014 the Administration Department was created and consists of 8 FTE's who were reorganized from several existing
departments such as the Mayors Department, Public Works and Community Development. This department includes
Emergency Management, Public Affairs, Economic Development, Human Services, Veterans Services and Community
Services.
(6)In 2014 the Planning Department was renamed Community Development.
(7)In 2014 the Golf Course fund was reclassified from an Enterprise Fund and included within the General Fund moving 8
of the Golf Course FTE's to the Parks, Arts and Recreation Department.
(8)In 2014 the Multi-Media division was reorganized from the Innovation & Technology Fund into it's own Internal Service
Fund. The 3.6 FTE's now report to the Director of Administration.
City of Auburn, Washington
SCHEDULE 19
STAFFING LEVELS BY DEPARTMENTLast Ten Fiscal Years
No data is presented for Fire employees for 2007 and thereafter due to the incorporation of the Fire department into a
City of Auburn: 2014 CAFR Statistical Section
167
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Planning
Commercial permits 240 248 214 95 112 18 38 24 32 64
Commercial construction value ($1,000's)71,047$ 63,658$ 63,658$ 22,887$ 58,896$ 8,386$ 10,904$ 13,219$ 28,357$ 35,786$
Residential permits 604 485 293 165 85 184 229 461 464 374
Residential construction value ($1,000's)112,125$ 61,872$ 61,872$ 27,048$ 15,739$ 36,602$ 43,574$ 98,212$ 96,248$ 83,007$
Police
Crimes:
Arson 33 36 30 24 19 23 29 27 14 32
Aggravated Assault 168 158 143 154 163 137 148 110 145 156
Burglary 623 686 590 630 590 725 757 983 651 810
DUI 218 158 145 194 193 192 214 171 138 126
Homicide 1 - 1 - 3 3 2 6 5 1
Narcotics 472 493 368 439 440 442 396 383 279 458
Rape 13 24 12 14 13 15 23 23 26 31
Robbery 85 122 92 102 92 79 107 110 109 104
Theft 2,509 2,216 1,962 2,343 2,362 2,533 2,435 2,415 2,583 3,192
Theft - motor vehicle 869 642 672 639 370 569 600 588 678 630
Traffic:
Non-criminal 6,850 4,978 6,865 6,794 7,788 7,182 5,400 4,922 5,378 6,520
Parking 2,140 3,965 4,802 3,740 4,026 4,648 3,383 1,946 2,052 5,238
Fire (1)
Type of response:
Building 94 98 - - - - - - - -
Non-building 198 238 - - - - - - - -
Alarm systems 474 524 - - - - - - - -
Service 493 618 - - - - - - - -
Other 870 979 - - - - - - - -
First Aid 5,679 5,616 - - - - - - - -
Parks and Recreation
Athletic teams 445 459 479 416 428 439 429 388 382 358
Recreation activities 2,086 2,069 2,719 2,056 2,335 2,281 3,462 3,833 3,568 3,557
Golf course rounds 47,501 43,454 50,500 54,993 50,572 49,950 45,484 45,704 47,480 47,697
Senior center visits 35,308 35,381 34,427 36,805 41,032 41,350 41,802 40,704 36,991 40,715
Cultural activities 56 58 84 84 90 101 127 146 180 202
Museum audience served 9,340 9,400 12,090 11,921 11,835 12,570 14,119 15,397 14,163 13,968
Cemetery burials 277 277 245 289 232 228 273 259 226 250
Sources: Various city departments
(1) 2007 - Effective 1/1/2007 Valley Regional Fire Authority formed replacing the Fire Departments of Auburn, Pacific and Algona.
City of Auburn, Washington
SCHEDULE 20
OPERATING INDICATORS BY DEPARTMENT
Last Ten Fiscal Years
City of Auburn: 2014 CAFR Statistical Section
168
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
General City
Total area (square miles)23.3 23.4 23.4 30.0 30.1 30.1 30.2 30.2 30.2 30.2
Public Works
Miles of streets 180 180 186 272 276 283 285 249 245 244
Number of streetlights 3,410 3,575 3,602 5,074 5,392 5,523 5,581 6,101 6,110 6,211
Number of traffic signals 72 72 72 83 85 86 89 93 94 94
Utilities
Number of services 12,833 12,633 12,954 13,050 13,076 13,372 13,334 13,863 14,106 14,573
Miles of water lines 278 279 287 283 293 297 304 314 315 316
Miles of sanitary sewer lines 177 177 182 205 207 213 213 219 220 220
Miles of storm lines 190 195 197 197 204 226 247 252 263 282
Number of fire hydrants 2,285 2,300 2,369 2,969 2,998 3,044 3,277 3,308 3,329 3,559
Public Safety
Number of fire stations (1)3 3 - - - - - - - -
Number of police stations 2 2 2 2 2 2 2 2 2 2
Parks and Recreation
Total park acreage (2)596 596 596 598 602 602 602 630 635 972.03
Number of softball/baseball fields 19 19 19 19 18 18 18 17 17 18
Number of soccer/football fields 3 3 3 3 3 3 3 3 4 4
Number of playgrounds 29 30 30 32 33 35 35 35 36 28
Sources: Various city departments
(1) Effective 1/1/2007 Valley Regional Fire Authority formed replacing the Fire Departments of Auburn, Pacific and Algona.
(2) The increase in total park acreage since 2013 is due to property inventory update in anticipation of the Parks Recreastion & Open Space Plan update
and additional park categories are now being reported.
City of Auburn, Washington
SCHEDULE 21
CAPITAL ASSET INDICATORS BY DEPARTMENT
Last Ten Fiscal Years
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Water Customers by Class
Single Family Residential 10,009 10,199 10,482 10,493 10,535 10,564 10,704 11,224 11,476 11,822
Multifamily 1040 915 957 961 985 991 991 989 986 1000
Commercial 1315 1,069 1086 1098 1083 1100 1095 1098 1094 1146
Mfr./Industrial 73 39 39 39 38 38 38 37 37 38
Schools 94 38 39 39 37 37 37 36 37 37
City Accounts 32 27 28 30 27 29 28 26 28 30
Irrigation 255 339 316 383 363 401 434 446 441 493
Total Retail Water Customers 12,818 12,626 12,947 13,043 13,068 13,160 13,327 13,856 14,099 14,566
Wholesale Water Customers 15 7 7 7 8 8 7 7 7 7
Sewer Customers by Class
Single Family Residential (1)N/A N/A N/A 10,698 10,711 10,918 11,183 11,522 11,982 12,631
Non-single Family Residential (1 N/A N/A N/A 2,604 2,605 2,612 2,616 2,653 2,659 2,713
Total Sewer Customers N/A N/A N/A 13,302 13,316 13,530 13,799 14,175 14,641 15,344
Storm Customers by Class
Single Family Residential (2)N/A 9,694 9,817 14,374 14,441 14,495 14,846 15,168 15,618 16,013
Non-single Family Residential (2 N/A 1,562 1,595 1,623 1,650 1,769 1,653 1,661 1,640 1,670
Total Storm Customers N/A 11,256 11,412 15,997 16,091 16,264 16,499 16,829 17,258 17,683
Sources: City of Auburn - Utility Billing
(1) The City's billing system was converted in 2005, data for Sewer Customers by Class prior to 2005 is not available
(2) The City's billing system was converted in 2005, data for Storm Customers by Class prior to 2006 is not available
City of Auburn, Washington
SCHEDULE 22
NUMBER OF UTILITY CUSTOMERS BY CUSTOMER CLASS
Last Ten Fiscal Years
City of Auburn: 2014 CAFR Statistical Section
169
Prepared by:
Shelley Coleman
Finance Director
Paula Barry
Assistant Finance Director
Janice Davies
Accounting Manager
Brenda Goodson-Moore
Utilities Customer Care Manager
Teri Ashton
Accountant
Ronda Stella
Payroll & Accounts Payable Supervisor
Consuelo Rogel
Financial Analyst
Aimee Campbell
Financial Analyst
Tamara Baker
Financial Analyst
Evelyn McOsker
Finance Secretary
City of Auburn: 2014 CAFR Statistical Section
170