HomeMy WebLinkAbout2009 CAFR Final DocumentCITY OF AUBURN
WASHINGTON
COMPREHENSIVE ANNUAL
FINANCIAL REPORT
Fiscal Year January 1, 2009 through December 31, 2009
WASHINGTON
Prepared by
Finance Department
Shelley Coleman, Finance Director
CITY OF
-T-
* MORE THAN YOU IMAGINED
CITY OF AUBURN: 2009 CAFR TABLE OF CONTENTS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
For the Year Ended December 31. 2009
TABLE OF CONTENTS
INTRODUCTORY SECTION
Page
Title Page
Table of Contents
i
City Officials
...................................1
Organizational Chart (City and Council Committees)
...................................2
Letter of Transmittal
...................................3
Certificate of Achievement
..11
II. FINANCIAL SECTION
Auditor's Report .
.13
Management's Discussion and Analysis
.........15
Basic Financial Statements
Government-wide Financial Statements:
Statement of Net Assets
.........35
Statement of Activities
36
Fund Financial Statements:
Balance Sheet - Governmental Funds
.........39
Statement of Revenues, Expenses and Changes in
Fund Balance - Governmental Funds
.........40
Reconciliation of the Statement of Revenues, Expenditures, and Changes in
Fund Balances of Government Funds to the Statement of Activities
.........41
Statement of Revenues, Expenditures and Changes in
Fund Balance - Budget and Actual:
General Fund
.........42
Arterial Street Fund
.........43
Statement of Net Assets - Proprietary Funds
46
Statement of Revenues, Expenses, and Changes in
Fund Net Assets - Proprietary Funds
.........47
Statement of Cash Flows - Proprietary Funds
.........48
Statement of Fiduciary Net Assets - Fiduciary Funds
52
Statement of Changes in Fiduciary Net Assets - Fiduciary Funds
53
Notes to the Financial Statements
.........55
Combining and Individual Fund Financial Statements and Schedules:
Combining Balance Sheet - Non-Major Government Funds
.........98
Combining Statement of Revenues, Expenditures, and Changes in
Fund Balances - Non-Major Government Funds
.........99
Combining Balance Sheet - Non-Major Special Revenue Funds
........102
Combining Statement of Revenues, Expenditures, and Changes in
Fund Balances - Non-Major Special Revenue Funds
........104
Schedules of Revenues, Expenditures, and Changes in
Fund Balances - Budget and Actual:
Local Street Special Revenue Fund
........106
Hotel/Motel Tax Special Revenue Fund....._
........107
CITY OF AUBURN: 2009 CAFR TABLE OF CONTENTS
Schedules of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual:
(continued)
Page
Arterial Street Preservation Special Revenue Fund
..108
Drug Forfeiture Special Revenue Fund
..109
Local Law Enforcement Grant Special Revenue Fund
..110
Housing & Community Development Special Revenue Fund
..111
Recreation Trails Special Revenue Fund
..112
Business Improvement Area Special Revenue Fund
..113
Cumulative Reserve Special Revenue Fund
..114
Mitigation Special Revenue Fund.....,
115
Combining Balance Sheet - Non-Major Debt Service Funds
..118
Combining Statement of Revenues, Expenditures, and Changes in
Fund Balance - Non-Major Debt Service Funds, ,
119
Balance Sheet - Non-Major Capital Project Fund
..122
Statement of Revenues, Expenditures, and Changes in
Fund Balances - Non-Major Capital Project Fund
..123
Balance Sheet - Permanent Fund
..126
Statement of Revenues, Expenditures and Changes in Fund Balance -
Permanent Fund
..127
Combining Statement of Net Assets - Non-Major Enterprise Funds
..130
Combining Statement of Revenues, Expenses, and Changes in Fund
Net Assets - Non-Major Enterprise Funds
..131
Combining Statement of Cash Flows - Non-Major Enterprise Funds
..132
Combining Statements of Net Assets - Internal Service Funds
..136
Combining Statement of Revenues, Expenses, and Changes in
Fund Net Assets - Internal Service Funds
..137
Combining Statement of Cash Flows - Internal Service Funds
..138
Statement of Changes in Assets and Liabilities - Agency Fund
..142
III. STATISTICAL SECTION
Schedule
Net Assets by Component
............1
..144
Changes in Net Assets
............2
..145
Fund Balances, Government Funds
............3
..146
Changes in Fund Balances, Government Funds
............4
..147
Tax Revenues by Source, Government Funds
............5
..148
Assessed Value by Type
............6
..149
Property Tax Data
............7
..150
Property Tax Levies and Collections
............8
..152
Principal Taxpayers - Property Taxes
............9
..153
Retail Tax Collections by Sector
..........10
..154
Ratios of Outstanding Debt by Type
..........11
..155
Computation of Legal Debt Margin
..........12
..156
Legal Debt Margin Ratios
..........13..........
..156
Computation of Net Direct and Estimated Overlapping Debt
..........14
..157
Ratio of Net General Bonded Debt to Assessed Value
..........15
..158
Pledged Revenue Bond Coverages
..........16..........
..159
Population, Income and Housing Trends
..........17
..160
Major Employers
..........18..........
..161
Staffing Levels by Department
..........19
..162
Operating Indicators by Department
..........20
163
Capital Asset Indicators by Department
..........21
..164
11
CITY COUNCIL
Nancy Backus
John Partridge
Virginia Haugen
Bill Peloza Sue Singer
DEPARTMENT DIRECTORS
Finance Director
Shelley Coleman
City Attorney
Dan Heid
Human Resources Director
Brenda Heineman
Information Services Director
Lorrie Rempher
Parks Director
Daryl Faber
Interim Planning Director
Kevin Snyder
Police Chief
Jim Kelly
Public Works Director
Dennis Dowdy
CITY OFFICIALS
MAYOR
Pete Lewis
Lynn Norman
Rich Wagner
Citizens
Judge
Patrick Burns
Mayor
Pete Lewis
City Council
Director of Human
tesources & Risk/Propert
Management
Brenda Heineman
Police Chief
Jim Kelley
Pudic Works Director
Dennis Dowdy
Parks/Art and Recreation
Director
Daryl Faber
Finance Committee
Nancy Backus, Chairperson
Lynn Norman, Vice Chair
John Partridge
Planning & Community
Development Comer lttee
Lynn Norman, Chairperson
Nancy Backus, Vice Chair
Rich Wagner
City Attorney
Dan Held
Director of Information
Services
Lorrie Rempher
Interim Planning Director
Kevin Snyder
Finance Director
Shelley Coleman
Municipal Services Committee
Bill Peloza, Chairperson
Sue Singer, Vice Chair
John Partridge
Public Works Comn*tee
Rich Wagner, Chairperson
Sue Singer, Vice Chair
Bill Peloza
2
CITY OF
ADBURN
WASHINGTON
June 21, 2010
Peter B. Lewis, Mayor
25 west Moin Street * Auburn WA 98(101-4498 * wwwr,Ci.4uburn,w0_uS * 253-931-3040
Honorable Peter Lewis, Mayor
Members of the Auburn City Council
Citizens of the City of Auburn
25 W Main Street
Auburn, WA 98001
We are pleased to present the City's Comprehensive Annual Financial Report for the year ended
December 31, 2009. 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, 2009. 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.
INTRODUCTION
A. MANAGEMENT REPRESENTATION
The Auburn Finance Department prepared the report and accepts complete responsibility for the
accuracy, completeness, and fairness of presentation of the information included. The data is
believed to be accurate in all material respects, and it is believed that all significant information
necessary for an understanding of the affairs and financial condition of the City has been
disclosed. The report has been prepared in conformance with generally accepted accounting
principals and in conformance with financial reporting standards issued by the Governmental
Accounting Standards Board (GASB).
City management has developed and evaluated a comprehensive internal control structure that
is designed to protect the City's assets from loss, theft, or misuse and to compile sufficient
reliable information for the preparation of the City's financial statements in conformity with
generally accepted accounting principles. Because the cost of internal controls should not
outweigh the benefits, the City's internal control structure is designed to provide reasonable,
rather than absolute, assurance that the financial statements will be free from material
misstatement. As management, we attest that, to the best of our knowledge and belief, this
financial report is complete and reliable in all material aspects.
3
AUBURN * MORE THAN YOU IMAGINED
CITY OF AUBURN: 2009 CAFR LETTER OF TRANSMITTAL
As a recipient of federal, state and county financial assistance the City is required to undergo an
annual single audit in conformity with U.S. Office of Management and Budget Circular A-133,
Audits of State and Local Governments. The audit is conducted by the State Auditor's Office in
conjunction with the City's annual independent audit. The results of the City's annual single
audit for the fiscal year ended December 31, 2009 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 2008 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 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 67,500 people within its incorporated
limits.
The City provides a wide range of services, both beneficial and necessary, to its residents as
well as to the adjacent area. These services include police protection; parks and recreational
facilities that include a senior center, golf course and museum; land use management and
development regulation; infrastructure construction and maintenance; water, sanitary sewage
collection, storm drainage, and solid waste services; a general aviation airport; and a municipal
4
CITY OF AUBURN: 2009 CAFR LETTER OF TRANSMITTAL
cemetery. The City also has a municipal court and jail facilities that provide services to other
governmental agencies 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 ll, both as a residential community and as a commercial and industrial area. Auburn
has become a significant area for automobile sales and has also developed a substantial
manufacturing and distribution base with the largest employer being The Boeing Co., which
employs over 5,000 people in its Auburn facility. Boeing is a worldwide supplier of aircraft and
related products. The City's assessed valuation in 2009, for 2010 property tax collection, was
$7,702,255,337.
Auburn has enjoyed steady residential and industrial growth over the years as development has
moved outward from the major cities. The City currently has a growing array of manufacturing
facilities, as well as distribution, wholesaling, and retailing operations. Auburn Regional Medical
Center, located in Auburn, serves the local geographic area and is a major trauma center of the
northwest. The medical center has expanded to include an oncology center and also has
constructed a new parking garage.
Auburn also has a significant retailing base, and in addition to maintaining its downtown core
businesses, has attracted significant retailers who have constructed major new facilities in
Auburn in recent years. The SuperMall of the Great Northwest has increased the retail base as
the area surrounding the SuperMall continues to develop as well as the 277th Street business
corridor. In addition, in the past 10 years Auburn has seen the development of a new YMCA, a
new Justice Center, downtown revitalization, Emerald Downs, Muckleshoot Casino, White River
Museum, White River Amphitheater, Washington National Golf Course, the commuter rail
station, the new Safeway distribution center, and the newly finished Auburn Golf Course
Clubhouse. Auburn has also been a center for automobile sales for a number of years, drawing
customers throughout the Puget Sound region.
Since 2000 the City's total assessed property valuation has more than doubled from $3.0 billion
to over $7.7 billion. The sales tax receipts went from $13.4 million to $14.7 million in the same
time period. The recent economic downturn compiled with the impact of the Streamlined Sales
Tax (SST) legislation enacted by the State of Washington that went into effect July 1, 2008; has
dropped sales tax revenues from their high in 2007 of $17.5 million to $11.7 million in 2009. The
SST eliminates approximately $200,000 a month of sales tax revenue to the City. The State of
Washington has a mitigation plan for cities that are severely impacted by the SST and the City of
Auburn received approximately $2.0 million in mitigation payments in 2009, however, there is no
certainty that the mitigation payments will continue.
The City has suffered in the recession and has not been insulated from the same effects being
felt at the State and National levels. The economic climate suddenly changed mid year 2008 and
has steadily declined through 2009. Sales Tax revenue which constitutes approximately forty
percent of the General Fund budget appears to have leveled off and `reset'. Real Estate Excise
Tax revenue decreased 30% from approximately $2.2 million in 2008 to $1.5 million in 2009.
The current Real Estate Excise Tax revenue forecast is expected to be less than half of past
years receipts. The City has reduced staff and corresponding budgets to align the budgets and
live within its means.
5
CITY OF AUBURN: 2009 CAFR LETTER OF TRANSMITTAL
There is a more positive note regarding City projects that are in the early development and
planning stages including the creation of the Auburn Environmental Park and a recently
constructed bird viewing tower in the park. The City has also acquired property in the downtown
area and entered into development contracts with a clear goal to revitalize the downtown area.
The State Legislature identified the Auburn downtown redevelopment area as a demonstration
area and the City is the planned recipient of an annual revenue stream from the State that will
provide $6.3 million of infrastructure improvements in the downtown area. This revitalization
trend is positive for the aging downtown core and is designed to integrate the existing downtown
with the planned development area(s).
Other recently completed projects within the downtown area include the Auburn Regional
Medical Center campus expansion. The campus expansion includes an oncology center and a
300 stall parking garage which is a public private partnership with the City where the City will
own 149 of the stalls. Also completed is a new professional office building which will provide
medical/professional office space, relocation of the Key Bank, and over 50,000 square feet of
new space for the City Hall. This project is adjacent to the Medical Center project and City Hall.
Other factors continue to strengthen the local economy over the past several years. Emerald
Downs a major thoroughbred horseracing facility in Auburn, was constructed to replace
Longacres - the area's former racing facility located in Renton, Washington. Emerald Downs
also provides facilities for meetings, banquets and seminars. A major gambling facility is located
on the Muckleshoot Indian Reservation in Auburn. This facility has undergone several
expansions within the past ten years which include a non-smoking facility, entertainment, and
the addition of a 24-hour family restaurant. The casino also completed construction of a five-
story parking garage in 2004 to accommodate casino growth and increased numbers of patrons.
The Tribe is in the planning stages at this time for further expansion of the facility in the near
future. The Tribe also opened the White River Amphitheater, a 25,000 seat outdoor facility in
2003. The total impact of these facilities on the City has been an increased demand for public
safety, and a large transportation impact, as the main arterial accessing these sites goes directly
through the City.
The Boeing Company's layoffs and divesture over the past several years in the Puget Sound
area has had an effect on the regional and local economy. From 2000 through 2009 Boeing has
reduced approximately 48% of its jobs in Auburn. The Boeing downsizing operation has led to
new economic growth in Auburn as available property and the adjacent land opens up to
development opportunities for other businesses. These new businesses are relocating to
Auburn by using property vacated by the Boeing Company. In the long term, the City will benefit
from the economic diversity.
Despite economic cycles, the City has continually focused on enhancing the quality of life in the
community. In recent years, through strategically placed bond issues, special levies, successful
grant procurements, and conservative operations, parks have been expanded, streets improved,
commercial and residential sidewalks have been upgraded, and buildings have been
advantageously renovated to house a new senior center and parks department. In 1997, the
voters elected to annex to the King County Library System. The System completed construction
of a new library in the City early in 2000. In 2001, the City renovated the former library building
into a new Senior Center at the Les Gove Park campus. In 2003, the City was successful in
negotiating the purchase of the former YMCA building located on this campus. The building was
demolished and site prepared for the future construction of a Community Center. The campus
currently hosts the Library, White River Valley Museum, Parks and Recreation department and
Senior Center.
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
6
CITY OF AUBURN: 2009 CAFR LETTER OF TRANSMITTAL
funding problems in the past, particularly in the current and recent recession years of 2001 and
2002, but have maintained the General Fund on a firm financial basis.
The City is maintaining a stable financial condition by reducing expenditure budgets to match the
current revenue streams. All funds contain adequate balances, and the City's debt is
manageable. The General and Cumulative Reserve funds contain satisfactory balances, a
significant Insurance fund has been set aside for contingencies, and the Equipment Rental fund
is adequate for vehicle replacement. The Proprietary and Fiduciary funds are generally in
satisfactory condition and have adequate balances for their purposes. The Water fund has been
under some economic pressure due to an aggressive capital program to meet federal and state
requirements. Rates were increased from 2007 through 2010. The City completed a
comprehensive plan update in 2009 for all utilities. A rate schedule was developed in 2009 and
the associated cost-of-service study for the utilities will be completed in 2010.
B. FUTURE ECONOMIC OUTLOOK
Auburn is in a continuous process of both short-term and long-term financial planning. Short-
term financial planning is inherent in the development of the City's biennial budget. Concurrent
with the biennial budget is the review of the City's long-term capital needs. Funding sources are
assessed with the development of the six-year Capital Facilities Plan. The capital facility plan is
a component of the Comprehensive Master Plan, which outlines how the City should look and
function in twenty years and creates a vision that can be realistically implemented. An integral
part of this vision is determining how to allocate the City's financial resources to achieve the
desired goals.
The City has several long-term planning and capital projects underway. Several projects include
the reconstruction of aged utility infrastructure, reconstruction of local neighborhood streets and
the A Street NW project. This project will improve mobility and will contribute to the completion
of a North/South arterial corridor. Also underway is a master plan for the Les Gove Park campus
which will house a community center and activity center in the future.
The Pierce County area of the City continues to grow through the development of new single
and multifamily housing in Lakeland Hills. Madera town homes, Pinnacle and Kersey Way
single-family homes are some of the newest developments with more in the planning stages.
Growth is predicted to continue, but not at the rate experienced in the late 1990's. The
challenge is to control costs that grow at a faster rate than revenue. Areas of concern are health
care costs and public safety costs related to incarceration and labor contracts. Continuing to
fund these sectors will draw valuable resources from other areas such as infrastructure
replacement and capital programs. As Auburn moves forward, economic conditions will be
continually monitored and adjustments to city spending and services made to maintain the City's
financial health. Long-term plans will be focused on ensuring the City continues to be an
economically strong and viable city.
III. FINANCIAL INFORMATION
A. CASH MANAGEMENT
The City invests in U.S. Treasury and Agency Issues, Prime Bankers Acceptances, Time
Deposits, and Repurchase Agreements. Investment policies and procedures, established by the
Mayor and adopted by the City Council, require the City to establish a trustee to take delivery of
all investment transactions at time of payment. The City has contracted with the Bank of New
York to provide delivery versus payment trustee services on all government agency investments.
The State of Washington maintains an investment pool to provide economies of scale in
CITY OF AUBURN: 2009 CAFR LETTER OF TRANSMITTAL
investing to smaller- and medium-sized cities in the State. The City uses this service for all
funds not invested in longer-term securities. The pool operates under the same legal restrictions
that apply to all municipalities in the State and, consequently, uses the same instruments as
listed above. The State also takes delivery of all investment transactions.
The City has adopted a comprehensive investment policy statement to guide City investment
practices. These policies are closely patterned after the recommendations in Investing Public
Funds published by the Government Finance Officer's Association (GFOA). Investments are
restricted to less than three years in order to maintain liquidity on all investments in all funds, yet
enable the City to take advantage of the yield curve. Fiduciary funds, which involve long-term
reserves and require minimal liquidity, are invested for longer time periods. The City undertakes
repurchase agreements only with financial institutions that offer the City full protection in the
event of default, by providing the delivery of the underlying security to the City.
B. RISK MANAGEMENT
The City participates in the Washington Cities' Insurance Authority (an insurance pool of over
100 cities) and the City actively pursues risk reduction in the operation of its programs.
The City purchases, with employee participation, most of its health insurance for its employees
through commercial policies administered by the Association of Washington Cities. Employees
represented by the Teamsters Union have insurance through the Teamsters organization. The
City participates in the Washington State Workers' Compensation program.
In order to keep its long-term options open and to provide for any uninsured losses that might
occur, the City has elected to build an insurance reserve (the Insurance fund). The Insurance
fund supplements various insurance coverages maintained by the City. This fund is also used to
self-insure some limited exposures, the most significant of which is accidental loss to City-owned
vehicles.
The Washington Cities' Insurance Authority not only provides a sharing of risk by pooling of
losses, it also provides an extensive array of professional services in risk management. The
pool monitors the City's management practices and damage claims. The City follows the
guidelines provided by the pool in an effort to minimize risk exposure in the day-to-day
operations of the City's programs. The City also maintains an extensive employee safety
program managed by the Human Resources department.
IV. OTHER RELEVANT INFORMATION
A. INDEPENDENT AUDIT
State law requires an annual audit of all City books of accounts and financial records by the
Office of the State Auditor, which is headed by an independently elected State official, the State
Auditor. The Auditor has broad legal authority to inquire into all financial and legal compliance
matters and such audits are considered equal to audits by certified public accounting firms. The
2009 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 2009. 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.
8
CITY OF AUBURN: 2009 CAFR LETTER OF TRANSMITTAL
B. AWARDS
The Government Finance Officer's Association of the United States and Canada (GFOA)
awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of Auburn
for its Comprehensive Annual Financial Report for the fiscal year ended December 31, 2008.
This was the twenty second consecutive year that the City has achieved this prestigious award.
In order to be awarded a Certificate of Achievement, a government must publish an easily
readable and efficiently organized comprehensive annual financial report. This report must
satisfy both generally accepted accounting principles and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. We believe that our current
Comprehensive Annual Financial Report continues to meet the Certificate of Achievement
Program's requirements and we are submitting it to the GFOA to determine its eligibility for
another certificate.
The City has also received the Government Finance Officer's Association Distinguished Budget
Presentation award for eighteen years. The City was one of just twenty-four cities in the state to
receive both the Certificate of Achievement for Excellence in Financial Reporting and the
Distinguished Budget Presentation award for 2008.
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
CITY OF
i_
* MORE THAN YOU IMAGINED
10
Certificate. of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Auburn
Washington
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
December 31, 2008
A Certificate of Achievement for Excellence in Financial
Reporting is presented by the Government Finance Officers
Association of the United States and Canada to
government units and public employee retirement
systems whose comprehensive annual financial
reports (CAFRs) achieve the highest
standards in government accounting
and financial reporting.
PNGE 0
AND
xy~ CIRPPMUM S
yak S chi
President
Executive Director
11
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* MORE. THAN YOU IMAGINED
12
Washington State Auditor
Brian Sonntag
INDEPENDENT AUDITOR'S REPORT
June 18, 2010
Mayor
City of Auburn
Auburn, Washington
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, 2009,
which collectively comprise the City's basic financial statements as listed in the table of
contents. These financial statements are the responsibility of the City's management. 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 of material misstatement. An audit includes examining, on a test
basis, evidence supporting the amounts and disclosures in the financial statements. An audit
also includes assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation. We believe
that our audit provides a reasonable basis for our opinions.
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, 2009, 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 conformity with accounting principles
generally accepted in the United States of America.
In accordance with Government Auditing Standards, we will also issue our report dated June
18, 2010, 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
13
i~ Insurance Building, PO Box 40021 • Olympia. Washington 985(1-1-0021 • (360) 902-0370 • TDD May (800) 833-6388 a
FAX (360) 753-06=16 hnp~lrw~nw.sao.wa.gov
control over financial reporting and compliance and the results of that testing, and not to provide
an opinion on the internal control over financial reporting or on compliance. That report is an
integral part of an audit performed in accordance with Government Auditing Standards and
should be considered in assessing the results of our audit.
The management's discussion and analysis on pages 15 through 32 is not a required part of the
basic financial statements but is supplementary information required by the Governmental
Accounting Standards Board. We have applied certain limited procedures, which consisted
principally of inquiries of management regarding the methods of measurement and presentation
of the required supplementary information. However, we did not audit the information and
express no opinion on it.
Our audit was performed 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 and individual fund financial statements and schedules on pages 98 through 142
is presented for purposes of additional analysis and is not a required part of the basic financial
statements. This information has been subjected to auditing procedures applied in the audit of
the basic financial statements and, in our opinion, 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 Sections 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 express no opinion on
it.
Sincerely,
'In
BRIAN SONNTAG, CGFM
STATE AUDITOR
14
CITY OF AUBURN: 2009 CAFR MANAGEMENT'S DISCUSSION AND ANALYSIS
MANAGEMENT'S DISCUSSION AND ANALYSIS
The City of Auburn's (the "City") discussion and analysis is designed to:
• Assist the reader in focusing on significant financial issues
• Provide an overview of the City's financial activity
• Identify changes in the City's financial position (its ability to meet future years' challenges)
• Identify any material deviations from the approved budget
• Identify individual fund issues or concerns
Management's Discussion and Analysis is designed to focus on the current year's activities, resulting
changes and currently known facts. Therefore, it should be read in conjunction with the Transmittal
Letter and the City's financial statements.
Financial Highlights
Total government-wide net assets, the amount by which total assets exceed total liabilities,
equal $553.4 million. A total of $465.3 million, or 84.1 % of total net assets, is invested in
capital assets, net of debt related to the capital assets, and includes assets such as utility
systems, streets, buildings, land, vehicles and equipment. An additional $2.2 million of net
assets is restricted for purposes of endowment and debt service. Of the remaining $85.9
million of net assets, $12.6 million is legally restricted, reserved by City policy for specific
purposes, or is restricted for use by the City's utilities and $73.3 million is unrestricted.
• The net increase in government-wide net assets during 2009 was $13.5 million. Of this
amount, $17.1 million was directly related to the increase in City-owned capital assets and
infrastructure.
• On a government-wide basis, governmental net assets increased by $12.7 million during
2009. Of this amount $11.1 million is attributable to the capitalization of construction
projects, and the balance of the increase is due to lower than anticipated expenditures.
• Business-type net assets increased by $818,981 during 2009. While the business-type
activities had a net loss of $1.4 million, net assets increased due to $1.9 million of utility
capital contributions. Of this amount, $7 million is related to utility infrastructure contributed
to the City by developers, and $1.2 million is related to new customer connections.
• Governmental fund balances at year-end totaled $40.5 million. Of this amount, $38.9
million, or 96%, is unreserved and available to fund ongoing activities. However, the
majority of the unreserved fund balance relates to special revenue funds and, as such, is
legally restricted for specific purposes. Included in unreserved fund balance is $5.3 million in
the cumulative reserve fund that is intended to provide resources in the event of significant
downturns in certain City funds or provide for capital needs as designated by the City
Council.
Compared to 2008, total governmental fund balances decreased by $1.7 million. This
decrease is primarily a result of expenditures related to the tenant improvements for the City
Hall Annex building.
• The general fund's unreserved fund balance increased $200,000 from 2008. This increase
resulted from a reduction in expenditures.
Total City debt payments during the year, net of compensated absences, were $2.3 million.
Total outstanding debt, including bonds and loans, totaled $76.2 million at December 31St
This ending debt balance is an increase of $50.2 million from 2008 and is the result of the
15
CITY OF AUBURN: 2009 CAFR MANAGEMENT'S DISCUSSION AND ANALYSIS
South Correctional Entity (SCORE) issuance of $86.2 million in bonds which the City of
Auburn is obligated to pay 31 % or $26.7 million of the debt issuance and the City Hall Annex
office space capital lease that was partially offset by scheduled debt repayments. See note
9 for further information on debt activity during the year and note 19 for information related to
the issuance of $31,990,000 Limited General Obligation bonds in May 2010.
Other City Highlights
• Construction of a parallel taxiway at the Auburn Municipal Airport.
• The City worked with other regional governments on future regional water supplies, climate
change, water demand, source exchange and small systems management.
• The expanded use of Photosafe Red Light Photo Enforcement and Speed Enforcement
within the City to enhance the public safety of our pedestrian and vehicular traffic.
Expansion included two school zones.
• Police reduced crime through community programs educating citizens on reducing crimes.
• Continued implementation of the neighborhood traffic calming program using revenues from
the Photo Safe Red Light Enforcement program.
• The completion of the second Shoreline Master Program.
• The provision of support to the Save Our Streets program for local street projects.
• The completion of Auburn Way North pedestrian crossing and A Street SE pedestrian
improvements.
• The City provided greater opportunity to citizens in need of human service agency services
to use those services in a more coordinated manner.
• Completed construction of a bird viewing tower in Auburn Environmental Park.
• The City secured Local Revitalization Financing from the State of Washington to assist in
funding downtown infrastructure improvements.
Overview of the Financial Statements
The City's basic financial statements are presented in three parts
1) Government-wide financial statements
2) Fund financial statements
3) Notes to the financial statements
Other supplementary information, in addition to the basic financial statements, is also contained in
this report. This section of the management's discussion and analysis is intended to introduce and
explain the basic financial statements.
Government-wide Financial Statements
The government-wide financial statements are designed to be corporate-like in that all governmental
and business-type activities are consolidated into columns which add to a total for the City. The
16
CITY OF AUBURN: 2009 CAFR MANAGEMENT'S DISCUSSION AND ANALYSIS
focus of the Statement of Net Assets is designed to be similar to bottom-line results for the City and
its governmental and business-type activities. This statement combines and consolidates
governmental funds' current financial resources (short-term spendable resources) with capital assets
and long-term obligations. Over time, increases or decreases in net assets may be one indicator of
improvement or deterioration in the City's overall financial health.
The Statement of Activities is focused on both the gross and net cost of various functions, including
both governmental and business-type activities, which are supported by the City's general tax and
other revenues. This is intended to summarize and simplify the user's analysis of cost of various
governmental services and/or subsidy to various business-type activities. The revenue generated by
the specific functions (charges for services, grants, and contributions) is compared to the expenses
for those functions to show how much each function either supports itself or relies on taxes and other
general funding sources for support. All activity on this statement is reported on the accrual basis of
accounting, requiring that revenues are reported when they are earned and expenses are reported
when they are incurred, regardless of when cash is received or disbursed.
Governmental activities of the City include general government (executive, finance, legal, human
resources, and court), security (police), physical environment, economic environment, transportation,
health and human services, and culture and recreation. The City's business-type activities include
water, sanitary sewer, storm water and solid waste utilities, as well as the operations of a golf
course, airport, cemetery and commercial retail space. 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 expenditures.
The information in the governmental fund statements can be used to evaluate the City's near-term
financing requirements and immediate fiscal health. Comparing the governmental fund statements
with the government-wide statements can help the reader better understand the long-term impact of
the City's current-year financing decisions.
Because the basis of accounting is different between the governmental fund statements and the
government-wide financial statements, reconciliations are provided. The reconciliation between the
governmental fund Balance Sheets and the government-wide Statement of Net Assets is found on
the bottom of the governmental funds' Balance Sheet, while the reconciliation between the
governmental fund Statement of Revenues, Expenditures and Changes in Fund Balance and the
government-wide Statement of Activities is found directly following the governmental funds'
Statement of Revenues, Expenses, and Changes in Fund Balance.
The City maintains seventeen individual governmental funds. Of these, three are considered major
(the general fund, the arterial street fund, and the capital improvement projects fund) and are
17
CITY OF AUBURN: 2009 CAFR MANAGEMENT'S DISCUSSION AND ANALYSIS
presented separately in the governmental fund Balance Sheet and the governmental fund Statement
of Revenues, Expenditures and Changes in Fund Balances. The remaining governmental funds are
combined into a single column labeled "Other Governmental Funds". Individual fund data for each of
the other governmental funds can be found in the combining statements later in this report.
The City maintains budgetary control over its operating funds through the adoption of a biennial
budget. Budgets are adopted at the fund level according to state law. Budgetary comparison
statements are presented for the general and arterial street funds as required supplemental
information. Other budgetary comparison schedules are included following the other government
funds' combining statements in this report.
Proprietary funds are used by governments to account for their business-type activities and use the
same basis of accounting utilized in private industry. Business-type activities provide specific goods
or services to a group of customers that are paid for by fees charged to those customers. There is a
direct relationship between the fees paid and the services rendered.
The City has two types of proprietary funds: enterprise funds and internal service funds. Enterprise
funds are used to account for goods and services provided to citizens, while internal service funds
are used to account for goods and services provided internally to various City departments.
Enterprise funds report the same functions presented as business-type activities in the government-
wide statements, but in greater detail. The City's enterprise fund statements provide information on
the City's four utilities (water, sanitary sewer, storm water, and solid waste) as well as the City-
owned airport, cemetery, and golf course and the City-leased retail space.
Internal service funds are an essential accounting tool used to accumulate and allocate costs
internally among the City's various functions. The City uses internal service funds to account for its
fleet of vehicles, its maintenance and operation of facilities, the City-wide provision of computer
hardware and software services, and its insurance premiums. Internal service funds benefit both
governmental and business-type activities, and are allocated accordingly in the government-wide
statement of activities.
Fiduciary funds account for assets held by the City in a trustee capacity or as an agent for
individuals, private organizations, other governments or other funds. Fiduciary funds are not
included in the government-wide financial statements because their assets are not available to
support the City's activities.
The City has two fiduciary funds: a pension fund and an agency fund, and are accounted for on the
accrual basis. As agency funds are custodial in nature, they do not include revenues and expenses.
Notes to the Financial Statements
The notes provide additional information that is essential to a full understanding of the data provided
in the government-wide and fund financial statements. The notes to the financial statements can be
found at the end of the Basic Financial Statements section.
Other Information
In addition to the basic financial statements and accompanying notes, this report also presents
certain required supplementary information concerning the budget vs. actual reports of the City's
general fund and major special revenue funds. The budget vs. actual required supplementary
information can be found on page 42 and 43, and the pension benefit and other postemployment
benefit required supplementary information is found in note 11.
18
CITY OF AUBURN: 2009 CAM MANAGEMENT'S DISCUSSION AND ANALYSIS
The combining statements referred to earlier in connection with nonmajor governmental funds,
nonmajor enterprise funds, and internal service funds are presented in the section titled "Fund
Financial Statements and Schedules".
Government-wide Financial Analysis
The statement of net assets can serve as a useful indicator of the City's financial position. The City
of Auburn's net assets (assets in excess of liabilities) at December 31, 2009 totaled $553.4 million.
Following is a condensed version of the government-wide statement of net assets with a comparison
to 2008'.
City of Aubum Net Assets
Goverrr»entalA&Aies
Business-typ
e Activities
Total
As of 12131/09
As of 12131!08
As of 12/31/09
As of 12/31108
As of 12/31109
As of 12131/08
Current and other assets
$ 95.967,931
$ 61772.384
$ 37.447,361
$ 44.721.537
$ 133,415.292
$ 106493,921
Capital assets, net of
accumulated depreciation
343,474,388
310,061.603
167.578.719
159,692,228
511,053,107
469.753,831
Total assets
439,442,319
371,833,987
205,026,080
204,413,765
644,468,399
576,247.752
Longtenm liabilities
other liabilities
Total liabilities
Net assets
Invested in capital assets,
net of related debt
Restricted
Unrestricted
Total net assets
61,994,470 8,354,361 18.295.607 20,348,476 80,290,077 28.702,837
6,259,422 4,994,178 4,491,593 2,645,390 10,751,015 7,639,568
68,253,892 13,348.539 22.787.200 22,993,866 91.041.092 36.342.405
314,691,982 303,564,348 150,621,492 144,626,496 465,313,474 448,190,844
12741.566 28,965.599 2,071,219 933,914 14.812785 29.899,513
43,754,879 25.955,501 29,546,169 35,859,489 73,301,048 61,814,990
$ 371,188,427 $ 358,485,448 $ 182,238,880 $ 181,419,899 $ 553,427,307 $ 539,905,347
The largest component of the City's net assets, $465.3 million, or 84.1%, is its investment in capital
assets, less debt related to the acquisition or construction of those assets. These capital assets,
such as streets, parks, trails, and vehicles and equipment related to police and public works, are
used to provide services to the citizens. As a result, these assets are not for sale, and are therefore
not available to fund current and future City obligations. The City elected the GASB 34 reporting
option to include all general infrastructure of the City acquired or substantially renovated since 1980.
The largest component of unrestricted net assets, $43.7 million, may be used for functions such as
public safety employee salaries and supplies, park and road maintenance, and other general
governmental services. The second largest component of unrestricted net assets, $29.5 million,
represents the unrestricted net assets of the City's business-type activities and may only be spent on
activities related to one of the four City utilities (water, sanitary sewer, storm water and solid waste)
or to the City-owned ventures (airport, golf course, cemetery, and commercial retail property).
Examples of utility activities include maintenance of water/sewer mains, pump and lift stations, storm
drain flushing, water meter reading, and garbage collection. Activities related to the other City-
owned ventures include maintenance of hangars and runways at the airport, and grooming and
landscaping at the golf course and cemetery.
Restricted governmental fund net assets are $12.7 million and are restricted for purposes such as
capital project construction, debt service, mitigation, and endowment.
19
CITY OF AUBURN: 2009 CAFR MANAGEMENT'S DISCUSSION AND ANALYSIS
Changes in Net Assets
The change in net assets represents the increase or decrease in City net assets resulting from its
various activities.
Following is a condensed version of the City's changes in net assets. The table shows the revenues,
expenses and related changes in net assets for both governmental-type and business-type activities:
City of Auburn's Changes in Net Assets
Governmental Activities
Business-ty
pe Activities
Total
2009
2008
2009
2008
2009
2008
Revenues:
Program revenues
Charges for services
$ 8.108.542
$ 9.077.556
$ 42.338,079
$ 39.883
.386
$ 50,446.
621 $
48,960.
942
Operating grants and contributions
3,001,401
2,567,788
87,454
55
,024
3,088,
855
2,622,
812
Capital grants and contributions
12,806,049
94,905,563
1,992,259
10,670
,660
14,798,
308
105,576,
223
General revenues
Property taxes
Sales taxes
InteiRind utility taxes
Admission & utility taxes
Excise taxes
Other taxes
Investment earnings
Miscellaneous revenue
Total revenues
Expenses:
General government
Public safety
Transportation
Physical environment
Culture and recreation
Economic environment
Health and human services
Interest on long-term debt
Water
Sanitary sewer
Storm drainage
Solid waste
Goff course
Other business-type activities
Total expenses
Increase in net assets before transfers
Transfers
Change in net assets
Net assets-beginning of period
Net assets-end of period
13,362,672
10,804,825
13,362.672
10,804,825
14.727.496
17.620.661
14.727.496
17.620.661
3.437.526
2.507.213
3.437.526
2.507.213
9,071,485
8,075,355
9,071,485
8,075,355
2,310,076
3,477,517
2,310,076
3,477,517
4,607.584
2.949.430
4.607.584
2.949.430
570,798
1,589,837
312,618
1,242.363
883,416
2,832,200
67,223
2,751,495
3,669,878
330,472
3,737,101
3,081,967
72,070,852
156,327,240
48,400,288
52,181,905
120,471,140
208,509,145
7.567.085
8.000,715
-
-
7,567.085
8.000.715
25.675.063
28.217.844
25.675.063
28.217.844
11,471,167
12,974,861
11,471,167
12,974,861
3,327,836
3,096,696
3,327,836
3,096,696
7.561.569
6.271.924
7.561.569
6.271.924
3.000.257
2.608.980
3.000.257
2.608.980
527,029
776,224
527,029
776,224
408,471
226,651
408,471
226,651
-
-
8.970.215
8.565.231
8.970.215
8.565.231
16,569,297
14,479,299
16,569,297
14,479,299
7,275,072
5.226.823
7,275.072
5,226.823
11.019.606
10.7 81.42 6
11.019.606
10.781.426
1,909,758
1,958,703
1,909,758
1,958,703
1,666,754
1,720,603
1,666,754
1,720,603
59.538.478
62.173.895
47.410.702
42.732.085
106.949.180
104.905.980
12,532,374 94,153,345 989,586 9,449,820 13,521,960 103,603,165
170,605 427,740 (170,605) (427,740) - -
12.702.979 94.581,085 818,981 9.022.080 13,521.960 103.603,165
358,485,448 263,904,363 181,419,899 172,397,819 539,905.347 436,302,182
$ 371.188.427 $ 358.485.448 $ 182238.880 $ 181.419.899 $ 553.427.307 $ 539.905.347
Governmental activities contributed $12.7 million to the total increase in City net assets. Revenues to
fund capital assets are recorded as program or general revenues in the statement of activities.
However, asset purchases are not recorded as expenses in the year purchased and construction
costs are not recorded as expenses in the year incurred. Instead, the costs are recorded as long-
term assets and are depreciated over their useful life. This amount equaled $11.1 million, which was
offset by an overall increase in the cost and variety of governmental services provided.
General tax revenues increased in the current fiscal year by 4.6%, compared to a decrease of 7.6%
in the prior fiscal year:
20
CITY OF AUBURN: 2009 CAFR MANAGEMENT'S DISCUSSION AND ANALYSIS
• Property tax revenue rose $2.5 million, or 23.7%. This increase is a result of the annexation
of Lea Hill and West Hill areas in 2008.
• Sales tax collections fell $2.9 million, or 16.4% as a result of the economic downturn and the
Streamlined Sales Tax legislation enacted in Washington State.
• Utility and admission tax revenue rose by $996,130 million or 12.3%. The increase is
primarily attributable to the one percent utility tax rate increase to fund Arterial Street
preservation.
• Other taxes increased by $1.6 million. The majority of this increase was attributable to
streamlined sales tax mitigation.
• Excise tax revenue decreased by $1,167,441, or 33.6%. The decline in excise taxes is from
a drop in real estate excise taxes (REET) of $671,354 which reflects the decline in real
estate activity both in number of transactions and in the average value per transaction.
Investment earnings fell by $1.0 million or 64.1% in governmental activities and $929,745 in
business-type activities for a government-wide decline of $1.9 million or 68.8%. These declines
reflect the tumultuous conditions in the market.
Government-wide Miscellaneous revenue increased $655,134, due to the increase in business-type
activities, and was primarily from a federal grant for the airport parallel taxiway.
Governmental activities expenses in the primary government as a whole decreased from $62.2
million to $59.5 million in 2009 a decrease of 4.3%. The decrease was a result of the City's
reduction in workforce, union concessions and unaffiliated reductions in 2009 along with other cost
cutting measures.
The first chart on the following page summarizes the government activity revenue by source, while
the second chart reflects the specific programs' revenues and related expenses for the various
activities of the City. Gaps between specific programs' revenues and their related expenditures are
funded through general tax revenues.
21
CITY OF AUBURN: 2009 CAFR MANAGEMENT'S DISCUSSION AND ANALYSIS
Revenues by Source - Government Activities
Other revenue
I%
Utility & admission taxes
13°%
Interfund utility tax,
5%
Sales taxes
19%
Charges for services
11%
pital grants &
ontributions
4%
Operating grants &
contributions
18%
xes
Program Expenses and Revenues - Governmental Activities
$100,000,000
$90,000.000
$80,000,000
$70,000,000
$60,000,000
$50,000,000
$40,000,000
$30,000,000
$20,000,000
$10,000,000
$0
o~
o~
~a
cz; e
~~o
oa
et
~o
\\G
~\~o
~o~
\~o
qj
~o
a~y
Q~~
m~
a~
a~
v~J
a\
OProgram revenues
■ Expenses
22
CITY OF AUBURN: 2009 CAFR MANAGEMENT'S DISCUSSION AND ANALYSIS
Business-type net assets increased by $818,981. Key components of this increase include:
$1.9 million of the increase relates to utility capital contributions. Of this amount, $7 million
is related to utility infrastructure contributed to the City by developers, and $1.2 million is
related to new customer connections.
• Income (loss) before capital contributions and transfers amounted to:
o Water fund:
o Sanitary sewer fund
o Storm fund:
o Solid waste fund.
o Golf course:
o Non-major funds:
• Net transfers-out totaled $170,605.
$ 37,074
(1,897,955;
(166, 027;
(1,320,186)
(232, 998',
2,188, 579
$(1,391,513)
Below is a chart that shows the relative net asset balances for each business-type fund:
Business-type Net Assets -By Fund
Solid wa
1%
Storm drainage
22%
Water
32%
The majority of net assets in the City's enterprise funds relate to capital asset infrastructure, such as
water and sewer mains, the airport runway, and the golf course land. As such, most of the net
assets are not available to support the ongoing expenses of the funds. Following are two charts that
contrast the total net assets to the spendable portion of net assets for each enterprise fund:
Golf course
3%
23
Sanitary sewer
35%
CITY OF AUBURN: 2009 CAM MANAGEMENT'S DISCUSSION AND ANALYSIS
Comparison of Total Net Assets to Spendable Net Assets
Utility Funds
$70,000,000
$60,000,000
$50,000,000
$40,000,000
$30,000,000
$20,000,00(
$10,000,00(
QLVI II i ui au iayc
Solid waste
Comparison of Total Net Assets to Spendable Net Assets
Other Enterprise Funds
$10,000,000
$9,000,000
$8,000,000
$7,000,000
$6,000,000
$5,000,000
$4,000,000
$3,000,000
$2,000,00(
$1,000,00(
Commercial retail
The first chart following depicts the revenues and expenses for business-type funds, while the
second shows the various sources of business-type revenue:
24
CITY OF AUBURN: 2009 CAFR MANAGEMENT'S DISCUSSION AND ANALYSIS
Business-type Activity Revenues and Expenses
Before Capital Contributions and Transfers
$15,000,000
$13,500,000
$12,000,000
$10,500,000
$9,000,000
$7,500,000
$6,000,000
$4,500,000
$3,000,000
$1,500,000
$0
Business-type Activity Revenues - By Source
Investment earnings
1%
Capital contributior
4%
arges for services
87%
❑ Revenues
■ Expenses
25
Water Sanitary Storm Solid waste Golf course Minor
sewer drainage business-type
activities
Business-type
miscellaneous
CITY OF AUBURN: 2009 CAFR MANAGEMENT'S DISCUSSION AND ANALYSIS
Financial Analysis of Governmental Funds
The purpose of the City's governmental funds is to report on near-term revenues/financial resources
and expenditures. This information helps determine the City's financial requirements in the near
future. Specifically, fund balance is a good indicator of the City's financial resources.
As of December 31, 2009, the City's governmental funds had combined fund balances of
$40,535,810, a decrease of $1,640,644 or 3.88%. This decrease is related to:
• General fund
$166,760
• Arterial street fund
($311,074)
• Capital improvement projects fund
($2,934,510)
• Other governmental funds
$1,438,180
Of the government funds' total fund balances, $38,997,772 is unreserved. Of this unreserved total,
$10,422,360 is earmarked for capital projects and $15,184,058 is in special revenue funds and is
earmarked for specific purposes. Of the $1,538,038 of fund balances that are reserved, $1,352,859
is reserved for endowment.
The general fund is the primary operating fund of the City. All receipts and payments of ordinary City
operations are processed through it unless they are required to be accounted for in another fund. At
the end of 2009, the general fund had a fund balance of $13,237,851, all of which is unreserved.
Other funds that had significant fund balances include:
• $9,770,693 in the capital improvement projects fund', used for various governmental capital
asset projects.
• $5,360,687 in the cumulative reserve fund; used for revenue stabilization or capital projects.
• $5,971,594 in the mitigation fund; used to collect fees from new development to mitigate the
cost of new roads and other infrastructure.
• $1,506,362 in the cemetery endowed care fund; used for maintenance of the cemetery.
26
CITY OF AUBURN: 2009 CAFR MANAGEMENT'S DISCUSSION AND ANALYSIS
The following chart shows the relative fund balances for governmental funds:
Governmental Funds - Fund Balances
Ce
endow
Mitigation fund
15%
Cumulative rese
fund
13%
General fund
32%
krterial street fund
3%
Capital improvement
fund
24%
The increase in the general fund balance of $166,760 is primarily attributable to a decrease in
anticipated expenditures. In addition, sales tax revenues declined $2.9 million or 16.4% reflecting
the negative impact of the Streamlined Sales Tax legislation enacted in the State of Washington as
well as the impacts of the economic downturn over the fiscal year. These decreases in revenue
were partially offset by an increase in intergovernmental revenues of $1.2 million; the majority of
which is attributable to money received from the State for streamlined sales tax mitigation.
General fund expenditures increased by $184,163 or .01% from 2008. The increase reflects the
reduction in the personnel costs and other cost saving measures the City undertook in 2009 in light
of the economic downturn.
27
All other government
funds
9%
CITY OF AUBURN: 2009 CAFR MANAGEMENT'S DISCUSSION AND ANALYSIS
The general fund revenue decrease of $806,449 came from the following sources:
$3,000,000
$2,000,000
Intergovernmental
$1,882,460
Interfund utility taxes
Property taxes $717,942
$1,000,000 $843,792 Utility & admission taxes
$450,198
Licenses & permits
$216,153
$0 F1 . F-1 . F__] . I I .
Fines & forfeitures
L($148,737)
($1,000,000) Charges for services
($687,834)
Miscellaneous
($1,187,258)
($2,000,000)
($3,000,000) Sales taxes
($2,893,165)
($4,000,000)
The ending fund balance decrease of $2.9 million in the capital improvement projects fund is largely
due to the City's tenant improvements on the City Hall Annex office space.
Other significant changes in fund balances include:
• The mitigation fund increased by $503,174 as revenues exceeded expenditures and net
transfers.
• The local streets fund increased by $821,212 revenues exceeded expenditures and net
transfers.
Financial Analysis of Proprietary Funds
The City's proprietary funds provide the same type of information as found in the government-wide
financial statements, but in greater detail. Factors affecting the finances of the City's proprietary
funds have already been addressed in the discussion of the City's business-type activities.
General Fund Budgetary Highlights
The City budgets biennially by adopting a budget at the end of the preceding fiscal year, and then
making adjustments as necessary via budget amendments throughout the next two years. Major
budget revisions included:
• Decreasing sales tax revenue by $2.6 million to adjust for economic downturn.
• Decreasing sales tax credit for the annexation by $500,000 due to the economic downturn.
2009 General Fund Revenue Increases /(Decreases) - By Source
28
CITY OF AUBURN: 2009 CAFR MANAGEMENT'S DISCUSSION AND ANALYSIS
• Increasing intergovernmental revenues by $1.5 million for South Correctional Entity
(SCORE) startup cost repayment
• Increasing transfer in from Cumulative Reserve fund by $1.5 million for SCORE startup costs
• Decreasing Building Permits by $254,350 as construction declines due to the economic
downturn.
• Decreasing salaries and benefits by $1.3 million due to 11.25 vacant positions City elected
to freeze due to the economic downturn.
• Decreasing street department capital outlay for a truck with snowplow by $280,000 due to
the economic downturn.
• Decreasing salaries and benefits by $ 1.1 million for a reduction in workforce (23.5
positions), freezing 3 more vacant positions, union concessions, and unaffiliated reductions.
• Decreasing intergovernmental professional services by $620,000 to reserve money for
SCORE startup and transition costs in the future.
• Increasing police intergovernmental professional services by $1.5 million for City's
contribution to SCORE
• Increasing transfers out to the Cumulative Reserve fund by $1.5 million for SCORE
repayment of startup costs.
Reasons for the significant variances in the general fund between the final budget and actual results
include:
• Retail sales and use tax were below budget by $2.4 million because the streamlined sales
tax credit that the State pays the cities for mitigation of losses due to the new destination
based sales tax is recorded in intergovernmental revenues but the City includes this credit in
its retail sales tax budget.
• Intergovernmental revenues exceeded the budgeted amount by $1.5 million because the
City received streamlined sales tax mitigation payment of $2.0 million from the State of
Washington which were not included in the intergovernmental revenue budget but in the
retail sales and use tax budget. The difference is SCORE repayment startup costs that the
City did not receive in 2009.
• Security of persons and property expenditures were below budget by $1.5 million as jail
costs were less than anticipated, and the City did not install as many Redflex traffic lights as
planned.
• Transfers in were $1.2 million less than budgeted due to $500,000 that was not transferred
in from the Commercial Retail fund and $743,043 was not transferred in from the Cumulative
Reserve fund for the City's contribution to SCORE startup 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, 2009 totaled $511.1 million (net of accumulated depreciation), an increase of $41.3
million from 2008. 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
29
CITY OF AUBURN: 2009 CAFR MANAGEMENT'S DISCUSSION AND ANALYSIS
• $24.5 million capital lease for the City Hall Annex
• Developer contributions resulted in an increase of $1.2 million in utility infrastructure assets
and $2.7 million in governmental infrastructure assets.
• $11.3 million was spent by proprietary funds on construction projects during the year.
• $16.5 million was spent by governmental funds on construction projects during the year.
Some of the larger projects in the governmental funds include:
o $1.5 million on Local Street Pavement Preservation
o $1.5 million on Arterial Pavement Preservation
o $3.2 million on City Hall Annex
o $1.4 million on Harvey Road & 8t" Street NE
o $0.7 million on Auburn Community Center
A summary of the City's net assets follows:
Summary of Capital Assets (net of depreciation)
Governmental Activities
Business-ty
pe Activities
Total
As of 12/31109
As of 12131108
As of 12131109
As of 12/31/08
As of 12/31109
As of 12/31108
Land
$ 106,289,278
$ 105,137,746
$ 14,464,997
$ 14,464,997
$ 120,754,275
$ 119,602,743
Building
14,778,942
15,569,975
8,129,361
8,454,977
22,908,303
24,024,952
Site improvements
4,907,626
4,957,636
130,188,990
133,417,881
135,096,616
138,375,517
Equipment
7,160,049
6,613,919
545,342
419,592
7,705,391
7,033,511
Intangibles
25,206,436
616,633
-
-
25,206,436
616,633
Infrastructure
168,650,222
168,394,252
-
-
168,650,222
168,394,252
Construction in progress
16,481,836
5,494,727
14,250,029
2,934,771
30,731,865
8,429,498
$ 343,474,389
$ 306,784,888
$ 167,578,719
$ 159,692,218
$ 511,053,108
$ 466,477,106
More detailed information on capital assets is provided in note 7
Long-term Debt
At the end of the current fiscal year, the City had total bonded debt outstanding of $38,397,677. Of
this amount, $27,985,850 is due to other governments, $8,175,000 is general obligation bonds,
$2,200,000 is revenue bonds for the water and storm utilities, and $36,827 is special assessment
debt with government commitment, The City currently maintains a rating of Aa3 with Moody's and a
rating of AA with Standard & Poor's for its general obligation debt.
The following schedule summarizes the City's bonded debt:
Summary of bonded debt
Governmental
Business-type
Activities
Activities
Total
General obligation bonds
$ 2,235,000
$ 5,940,000
$ 8,175,000
Special assessment bonds
36,827
-
36,827
Revenue bonds
-
2,200,000
2,200,000
Due to other governments
27,985,850
-
27,985,850
$ 30,257,677
$ 8,140,000
$ 38,397,677
Below is a summary of additional, non-bonded long-term debt of the City:
30
CITY OF AUBURN: 2009 CAFR MANAGEMENT'S DISCUSSION AND ANALYSIS
Other Long-term Debt
Public Works Trust Fund loans $ 10,014,943
Employee leave benefits 2,649,569
$ 12,664,512
Washington State law limits the amount of general obligation debt a governmental entity may issue
to 7.5% of its total assessed value. Of the 7.5% limit, 2.5% is for general purposes, 2.5% is for open
spaces/parks, and 2.5% is for utilities. Non-voted (limited tax) general obligation indebtedness is
limited to 1.5% of assessed valuation. The combination of unlimited tax and limited tax general
obligation debt for all purposes cannot exceed 7.5% of assessed valuation. Following is a summary
of the City's legal debt limitations and capacity:
Summary of legal debt limits and capacity
Auburn
With a Vote
Legal Limitation
Capacity
General
$ 192,556,383
$ 129,922,696
Open spaces/parks
192,556,383
192,556,383
Utilities
192, 556, 383
192, 556, 383
Totals
577,669,150
515,035,463
Without a Vote
General $ 115,533,830 $ 52,900,143
Totals $ 115,533,830 ' -7=,900,143
Additional information can be found in note 9 and in the statistical section of this report.
Economic Factors
The outlook for 2010 and beyond is guarded. The economy in the county and the City has
experienced the same deep, lingering recession as that of the nation. The largest impact on the City
is the decline in sales tax and development revenues. In addition there has been a $2.1 million drop
in interest income for the City. Many existing businesses have reduced their forces and
unemployment in Auburn ranges between 9% for blue collar workers and close to 12% for middle
management. However in spite of the recession there is development occurring in the City:
Auburn Regional Medical Center has recently completed construction of an 11,000-square
foot cancer treatment center adjacent to the hospital, along with a public/private mix 300-stall
parking garage. The City owns 145 of the stalls in the garage
• A new three story building houses City offices (City Hall Annex) on the second and a portion
of the third floor. The building also features Key Bank as its anchor, along with
medical/professional offices.
Downtown redevelopment is planned on several blocks (4+) near the Transit Station. A
developer has been selected and the project value is estimated to be $240 million. The State
has identified the Auburn project as a demonstration project and the City will receive up to
$250,000 a year that will support approximately $7.2 million in infrastructure improvements
in this area. The City was recently awarded a $3.0 million Economic Development
Administration grant for this project.
Plans are moving forward to develop a large retail/office project in the City's north end that
had been a drive-in movie complex. Up to 65 acres may be involved. Significant new retail
sales tax revenues would be generated from this project.
31
CITY OF AUBURN: 2009 CAFR MANAGEMENT'S DISCUSSION AND ANALYSIS
• A new Super Wal-Mart has begun construction adjacent to the Super Mall and is scheduled
for opening in the fall of this year. That will also provide the City with new jobs and new tax
revenues.
The City has and is adjusting the current expenditure budget in order to live within its means. The
recession is anticipated to end early 2010. However, the return of revenue levels will be sometime
further off in the future. The City views this economic event as a 'reset' of revenue to a lower base
and expectations are that it may be several years before they return to prior levels.
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.
32
CITY OF AUBURN: 2009 CAFR BASIC FINANCIAL STATEMENTS
GOVERNMENT-WIDE FINANCIAL STATEMENTS
The City presents two government-wide financial statements:
The Statement of Net Assets provides information all on city assets and
liabilities, with the difference between the two reported as net assets.
The Statement of Activities is focused on both the gross and net cost of
various functions, including both governmental and business-type activities,
which are supported by the City's general tax and other revenues.
33
CITY OF AUBURN: 2009 CAFR BASIC FINANCIAL STATEMENTS
C 17V fly
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URN
* MORE THAN YOU IMAGINED
34
CITY OF AUBURN: 2009 CAFR BASIC FINANCIAL STATEMENTS
CITY OF AUBURN, WASHINGTON
STATEMENT OF NET ASSETS
DECEMBER 31, 2009
CASH AND CASH EQUIVALENTS (Note 3)
CASH WITH OUTSIDE AGENCIES
INVESTMENTS (Note 3)
RECEIVABLES:
TAXES
CUSTOMER ACCOUNTS
OTHER RECEIVABLES
SPECIAL ASSESSMENTS
DUE FROM OTHER GOVERNMENTAL UNITS (Note 6)
INTERNAL BALANCES
MATERIALS AND SUPPLIES INVENTORY
LONG-TERM CONTRACTS AND NOTES
DEFERRED CHARGES
RESTRICTED ASSETS:
TEMPORARILY RESTRICTED:
CASH AND CASH EQUIVALENTS (Note 3)
DUE FROM OTHER GOVERNMENTAL UNITS (Note 6)
PERMANENTLY RESTRICTED:
CASH AND CASH EQUIVALENTS (Note 3)
INVESTMENT IN JOINT VENTURES
DEPRECIABLE CAPITAL ASSETS (NET OF ACCUMULATED
DEPRECIATION): (Note 7)
NON-DEPRECIABLE CAPITAL ASSETS
TOTALASSETS
LIABILITIES:
ACCOUNTS PAYABLE
OTHER LIABILITIES PAYABLE
PAYABLE FROM RESTRICTED ASSETS:
ACCRUED INTEREST
DEPOSITS
MATURED BONDS PAYABLE
UNEARNED REVENUE
DEFERRED CREDITS
DUE TO OTHER GOVERNMENTAL UNITS
SPEC ASSESSMENT DEBT WITH GOVT COMMITMENT (Note 12)
NET OPEB OBLIGATION
BONDS AND OTHER DEBT PAYABLE:
DUE WITHIN ONE YEAR (Note 12)
DUE IN MORE THAN ONE YEAR (Note 12)
TOTAL LIABILITIES
NET ASSETS:
INVESTED IN CAPITAL ASSETS. NET OF RELATED DEBT
RESTRICTED FOR:
CAPITAL PROJECTS
DEBT SERVICE
SPECIAL REVENUE FUND PROJECTS
PERMANENTFUND
EXPENDABLE
NONEXPENDABLE
OTHER PURPOSES
RATE STABILI2ATION
CONSTRUCTION
UNRESTRICTED NET ASSETS
TOTAL NET ASSETS
$ 37,853,416 $
23,177,483 $
61,030,899
3.991.562
5.046,023
9.037,585
446,919
-
446.919
177,165
4,397,705
4,574,870
2,662,766
26,841
2,689,607
650,919
-
650,919
1,245,446
1,106, 654
2,352,100
(233,216)
233,216
-
111,861
206,813
318,674
641.075
1,067.442
1,698,517
1,564,407
-
1,564,407
10.993.821
2.195,184
13,189,005
575.336
-
675,336
1,199, 356
1,199, 356
34, 087, 098
34, 087, 098
220,703,275 138,863,693 359,566,968
122,771,114 28,715,026 151,486,140
5,992,931
4,228,329
10, 221, 260
266,491
54,077
320,568
-
139.299
139.299
69.888
69.888
1,720,387
871,464
2,591,851
27, 985, 850
27, 985, 850
36,827
36,827
1.446.786
1,446.786
4,010,685 1,665,505 5,676,190
26,793,935 15,758,638 42,552,573
314.691.982
150, 621.492
465.313.474
3,192,582
-
3,192, 582
151,451
851,361
1,002,812
8,198,177
-
8,198,177
1.199.356
1,199, 356
300.000
300,000
919,858
919,858
43,754,879 29,546,169 73,301,048
$ 371,188,427 $ 182,238,880 $ 553,427,307
The notes to the financial statements are an integral part of this statement.
35
CITY OF AUBURN: 2009 CAFR BASIC FINANCIAL STATEMENTS
CITY OF AUBURN, WASHINGTON
STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED DECEMBER 31, 2009
Page 1 of 2
PROGRAM REVENUES
OPERATING CAPITAL
CHARGES GRANTS AND GRANTS AND
EXPENSES FOR SERVICES CONTRIBUTIONS CONTRIBUTIONS
PRIMARY GOVERNMENT
GOVERNMENTAL ACTIVITIES:
GENERAL GOVERNMENT
PUBLIC SAFETY
TRANSPORTATION
PHYSICAL ENVIRONMENT
CULTURE AND RECREATION
ECONOMIC ENVIRONMENT
HEALTH AND HUMAN SERVICES
INTEREST ON LONG-TERM DEBT
BUSINESS-TYPE ACTIVITIES:
WATER
SANITARY SEWER
STORM DRAINAGE
SOLID WASTE
GOLF COURSE
NONMAJOR BUSINESS-TYPE ACTIVITIES
TOTAL PRIMARY GOVERNMENT
$ 7,567,085 $
814,095 $
191,693 $
354,000
25,675,063
2,854,530
1,814,533
2,255,864
11,471,167
1, 587, 850
9,821.460
3,327, 836
147,996
88,049
66.464
7,561,569
1,048,390
367,119
308,261
3,000,257
1,654,692
141,550
-
527,029
989
398,457
408,471
-
-
-
59,538,478
8,108,542
3,001,401
12,806,049
8.970,215
16,569,297
7,275,072
11,019,606
1,909,758
8,825,924
14,902,566
6,000,863
9,599,236
1,653,769
87,454
649.742
592.376
750.141
GENERAL REVENUES:
TAXES:
PROPERTY
RETAIL SALES AND USE
INTERFUND UTILITY
UTILITY
EXCISE
OTHER
INVESTMENT EARNINGS
MISCELLANEOUS
GAIN ON SALE OF CAPITAL ASSETS
CONTRIBUTIONS TO ENDOWMENT FUNDS
TRANSFERS (Note 5)
TOTAL GENERAL REVENUES
NET ASSETS- BEGINNING
The notes to the financial statements are an integral part of this statement.
36
CITY OF AUBURN: 2009 CAFR BASIC FINANCIAL STATEMENTS
Page 2 of 2
NET (EXPENSE) REVENUE AND
CHANGES IN NET ASSETS _
GOVERNMENTAL BUSINESS-TYPE
ACTIVITIES ACTIVITY TOTAL
$ (6,207,297) $
$ (6,207,297)
(18, 750,136)
(18, 750,136)
(61, 857)
(61.857)
(3,025, 327)
(3, 025, 327)
(5, 837, 799)
(5, 837, 799)
(1,204,015)
(1,204,015)
(127, 583)
(127, 583)
(408,471)
(408, 471)
(35, 622, 486)
(35, 622, 486)
505.451
505.451
(1.074.355)
(1.074.355)
(524,068)
(524,068)
(1.332,916)
(1.332,916)
(255,989)
(255,989)
(311,033)
(311,033)
(2,992,910)
(2,992,910)
$ (35,622,486) $ (2,992,910) $
(38,615,396)
$ 13,362.672 $
$
13.362.672
14, 727,496
14, 727.496
3,437,526
3,437,526
9,071,485
9,071,485
2,310,076
2,310,076
4,607,584
4,607,584
570,798
312,618
883,416
114,607
3,662,157
3.776,764
(88,023)
7.721
(80.302)
40,639
-
40,639
170,605
(170,605)
-
48,325,465
3,811,891
52,137,356
358,485,448 181,419,899 539,905,347
37
CITY OF AUBURN: 2009 CAFR BASIC FINANCIAL STATEMENTS
MAJOR GOVERNMENTAL FUNDS
General Fund
The general fund accounts for all of the City's financial resources except those
required by statute or generally accepted accounting principles to be accounted
for in another fund. As is the case with most municipalities, the general fund is
the largest and most important accounting entity of the City. As noted in the
statements that follow, the general fund receives the bulk of its revenues from
local taxes, followed by State shared revenues, service charges, and other
income.
The general fund is accounted for on a modified accrual basis. Biennial budgets
are adopted with appropriations lapsing at the end of each year of the biennium.
Arterial Street Fund
This fund is supported by the State's one-half cent gas tax and is used for major
street construction.
Capital Improvement Projects Fund
This fund accounts for major capital acquisitions, and streets and parks
construction projects.
38
CITY OF AUBURN: 2009 CAFR BASIC FINANCIAL STATEMENTS
CITY OF AUBURN, WASHINGTON
BALANCE SHEET
GOVERNMENTALFUNDS
DECEMBER 31, 2009
OTHER
TOTAL
GENERAL
ARTERIAL
CAPITAL
GOVERNMENTAL
GOVERNMENTAL
FUND
STREET
IMPROVEMENT
FUNDS
FUNDS
ASSETS:
CASH AND CASH EQUIVALENTS
$ 9.047.865
$ 1,827.584
$ 10,604.645
$ 16.440,462
$ 37.920,556
INVESTMENTS
2,990,937
-
1,000,625
3,991,562
RECEIVABLES:
TAXES
446.919
-
446.919
CUSTOMER ACCOUNTS
OTHER RECEIVABLES
SPECIAL ASSESSMENTS
INTERFUND RECEIVABLE (Note 5)
LONG-TERM NOTES AND CONTRACTS
DUE FROM OTHER GOVERNMENTAL UNITS
DEFERRED CHARGES
TOTAL ASSETS
LIABILITIES AND FUND BALANCES:
CURRENT PAYABLES
CUSTOMER DEPOSITS
OTHER LIABILITIES PAYABLE
DEFERRED REVENUE
TOTAL LIABILITIES
FUND BALANCES:
RESERVED FOR:
DEBT SERVICE
ENDOWMENT
UNRESERVED.REPORTEDIN:
GENERALFUND
SPECIAL REVENUE FUNDS
CAPITAL PROJECT FUNDS
PERMANENTFUND
TOTAL FUND BALANCES
TOTAL LIABILITIES AND FUND BALANCES
Total governmental fund balances as reported on this statement
119,255
51,400
-
170,655
2,592,860
-
56,345
2,649,205
-
-
650.919
650.919
59,375
-
59,375
- -
641,075
-
641,075
1.217.764 426.522
-
148,814
1.793.100
-
-
4,320
4,320
$ 16,415,600 $ 2,254,106 $
12,357,120 $
17,300,860 $
48,327,686
$ 2,500.995 $ 585,050 $ 1,945,352 $ 363,338 $ 5.394.735
226,679 - - - 226,679
359 - - - 359
449.716 428.393 641.075 650,919 2.170.103
3,177,749 1,013,443 2,586,427 1.014,257 7,791,876
185,179 185,179
1.352.859 1.352,859
13,237,851
-
-
13.237,851
-
1.240.663
-
13.943.395
15.184.058
-
9,770,693
651,667
10,422.360
-
-
-
153,503
153,503
13,237.851
1,240.663
9,770.693
16.286.603
40.535,810
$ 16,415,600
$ 2,254,106 $
12,357,120 $
17,300,860 $
48,327,686
Amounts reported for governmental activities in the statement of net assets are different because:
Capital assets used in governmental activities are not financial resources and therefore not reported in the funds.
Other long-term assets are not available to pay for current-period expenditures and therefore are deferred in the funds.
Prepaid expenses
Interest receivable on investments
Unearned revenue beyond the citys 30-day measurable and available period
Deferred charges for bond issue costs
Internal service funds are used by management to charge the cost of certain activities, such as insurance and fleet
maintenance, to individual funds. The assets and liabilities of these internal service funds are included in governmental
activities in the statement of net assets.
Certain Joint Ventures activities do not use or provide current financial resources but increase net assets.
Some liabilities are not due and payable in the current period and therefore are not reported in the funds.
Bonds and loans payable
Interest payable
Net pension obligation
Net other postemployment obligations
Compensated absences payable
The notes to the financial statements are an integral part of this statement.
$ 40,535,810
336,770,669
1,421,612
13,561
449,716
922
1,885,810
17,957,299
6,101,248
(28,782,406)
(33,728)
138,475
(1,446.786)
(1,937,965)
(32,062,410)
$ 371,188,427
39
CITY OF AUBURN: 2009 CAFR BASIC FINANCIAL STATEMENTS
CITY OF AUBURN, WASHINGTON
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
GOVERNMENTALFUNDS
FOR THE YEAR ENDED DECEMBER 31, 2009
OTHER TOTAL
GENERAL ARTERIAL CAPITAL GOVERNMENTAL GOVERNMENTAL
FUND STREET IMPROVEMENT FUNDS FUNDS
TAXES:
PROPERTY
RETAIL SALES & USE
INTERFUND UTILITY
UTILITY
EXCISE
OTHER
LICENSES AND PERMITS
INTERGOVERNMENTAL
CHARGES FOR SERVICES
FINES AND FORFEITURES
SPECIAL ASSESSMENTS
INVESTMENT EARNINGS
MISCELLANEOUS
EXPENDITURES:
CURRENT:
GENERAL GOVERNMENT
SECURITY OF PERSONS AND PROPERTY
PHYSICAL ENVIRONMENT
TRANSPORTATION
ECONOMIC ENVIRONMENT
HEALTH AND HUMAN SERVICES
CULTURE AND RECREATION
$ 10,601,791 $
$
$
2,313,152 $
12,914,943
14.727.496
-
14.727.496
3,042,567
394,959
3,437,526
7.938.021
1.133.464
9.071.485
680,373
1.558,926
70,777
2,310,076
-
-
52.480
52.480
1,326,875
-
1,326,875
7.670.754
1.165.708
779.605
9.616.067
1,709,191
-
1,764,008
3,473,199
1.911.034
-
-
1.911.034
56,130
51,467
107,597
169.445
14,994
140,770
159.487
484,696
495,110
257,620
20,693
369,005
1,142,428
50,272,657
1,438,322
1,776,519
7,088,404
60,575,902
7,864.410
-
-
-
7,864,410
25,356, 285
405,831
25,762,116
3.192.089
-
-
3.192.089
2,761,113
4,043,771
3,045,695
9,850,579
2.341.297
-
687.387
3.028.684
527,029
-
527,029
6,622.546
6.622.546
DEBT SERVICE:
PRINCIPAL
213.258 35.578 230.825
479.661
INTEREST AND OTHER COSTS
159,239 1,456 - 135,546
296,241
CAPITAL OUTLAY
- - 29.154.937 1.183.571
30,338,508
TOTAL EXPENDITURES
49,037.266 4,080,805 29.154.937 5.688.855
87.961,863
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
1.235.391 (2,642,483) (27.378.418) 1.399.549
(27,385,961)
OTHER FINANCING SOURCES (USES):
SALES OF CAPITAL ASSETS
100,754
10
26,977
127,741
INSURANCE RECOVERIES
114.607
-
-
-
114,607
ISSUANCE OF DEBT
35,878
921,400
-
957,278
PROCEEDS FROM CAPITAL LEASE
-
-
24.549.186
-
24,549186
TRANSFERS IN (Note 5)
1,773,957
1,524,151
1,195,158
2,501,040
6,994,306
TRANSFERS OUT (Note 5)
(3,093.827)
(114,142)
(1.300,446)
(2,489.386)
(6,997,801)
TOTAL OTHER FINANCING SOURCES AND USE
S (1,068,631)
2,331,409
24,443,908
38,631
25,745,317
NET CHANGE IN FUND BALANCES
166,760
(311,074)
(2,934,510)
1,438,180
(1,640,644)
FUND BALANCES - BEGINNING
13.071.091
1,551,737
12.705.203
14.848.423
42,176,454
FUND BALANCES - ENDING
$ 13.237,851 $
1,240,663 $
9.770,693 $
16.286.603 $
40.535,810
The notes to the financial statements are an integral part of this statement.
40
CITY OF AUBURN: 2009 CAFR BASIC FINANCIAL STATEMENTS
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, 2009
Net change in fund balances per the Statement of Revenues, Expenditures and Changes in Fund Balance
$ (1,640,644)
Amount reported as change in net assets in the Statement of Activities are different because:
Governmental funds report capital outlays as expenditures. However, in the statement
of activities the cost of those assets is allocated over their estimated useful lives and
reported as depreciation expense. This is the amount by which capital outlay ($37.504,802)
exceeded depreciation ($10,238,356) in the current period.
27,266.446
Certain Capital and Joint Venture activities do not use or provide current financial resources
but increase net assets.
8,764,421
Governmental funds report proceeds from sales of assets as other financing sources
while the Statement of Activities reports only the gain or loss on sale of capital assets
(202.974)
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-tern liabilities in the statement of net assets and does not affect the statement of activities.
(25,506,464)
Revenues in the Statement of Activities that do not provide current financial resources
are not reported as revenues in the funds:
Deferred revenue
449,717
Donation of property
-
Amortization of bond premium
3,138
Investment interest receivable
34.927
487,782
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.
3,102,832
Repayment of the principal of long-term debt consumes the current financial resources of
governmental funds but has no effect on the net assets.
479.661
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.
1.136,781
Sorne expenses reported in the Statement of Activities do not require the use of current
financial resources and therefore are not reported as expenditures in governmental funds.
Amortization of debt issue costs
(3,240)
Amortization of prepaid expenses
(109,355)
Change in accrued interest payable
3,259
Change in net pension obligation
114,735
Change in net other postemployment benefits
(653,582)
Change in compensated absences payable
(536,679)
(1,184,862)
12,702.979
The notes to the financial statements are an integral part of this statement.
41
CITY OF AUBURN: 2009 CAFR BASIC FINANCIAL STATEMENTS
CITY OF AUBURN, WASHINGTON
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
GENERALFUND
FOR THE YEAR ENDED DECEMBER 31, 2009
FINAL VARIANCE WITH
ORIGINAL AMENDED FINAL BUDGET
BUDGET BUDGET ACTUAL POSITIVE
TAXES:
PROPERTY
RETAIL SALES & USE
INTERFUND UTILITY
UTILITY
EXCISE
LICENSES AND PERMITS
INTERGOVERNMENTAL
CHARGES FOR SERVICES
FINES AND FORFEITURES
INVESTMENT EARNINGS
MISCELLANEOUS
EXPENDITURES:
CURRENT:
GENERAL GOVERNMENT
SECURITY OF PERSONS AND PROPERTY
PHYSICAL ENVIRONMENT
TRANSPORTATION
ECONOMIC ENVIRONMENT
HEALTH AND HUMAN SERVICES
CULTURE AND RECREATION
DEBT SERVICE
TOTAL EXPENDITURES
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES):
SALES OF CAPITAL ASSETS
PROCEEDS FROM LONG TERM DEBT
INSURANCE RECOVERIES
TRANSFERS IN (Note 5)
TRANSFERS OUT (Note 5)
TOTAL OTHER FINANCING SOURCES AND USES
NET CHANGE IN FUND BALANCES
FUND BALANCES- BEGINNING
FUND BALANCES- ENDING _
$ 9,868,500 $
9,868,500 $
10,601,791 $
733,291
20,155,000
17,096,725
14,727,496
(2,369,229)
3.152,700
3,152,700
3,042.567
(110,133)
6,783,600
6,783,600
7,938,021
1,154,421
946,500
817.420
680,373
(.137,047)
1,380,500
1,126,150
1,326,875
200,725
3776.000
6,116,550
7.670.754
1,554.204
2,009,300
1,784,220
1,709,191
(75,029)
2,033,000
2,072.400
1.911.034
(161,366)
300,000
300,000
169,445
(130,555)
224,200
351,170
495,110
143,940
50,627300
49,469,435
50,272,657
803,222
9,222,900
8,567,255
7,864,410
702,845
26,590,500
26,869.295
25,356,285
1.513,010
3,808,600
3,368,795
3,192,089
176,706
3,304700
3.135.870
2,761 A 13
374.757
2,784,900
2,897,395
2,341,297
556,098
591,900
590,600
527.029
63,571
7,033,800
6,775,640
6,622,546
153,094
100,754 100,754
- - 35,878 35,878
25,000 80,000 114,607 34,607
1,517,000 3,029,500 1.773,957 (1,255.543)
(3,575,700) (3,744,515) 166,760 3,911,275
The notes to the financial statements are an integral part of this statement.
42
CITY OF AUBURN: 2009 CAFR BASIC FINANCIAL STATEMENTS
CITY OF AUBURN, WASHINGTON
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
ARTERIAL STREET FUND
FOR THE YEAR ENDED DECEMBER 31, 2009
ORIGINAL
FINAL
AMENDED
VARIANCE WITH
FINAL BUDGET
BUDGET
BUDGET
ACTUAL
POSITIVE
(GAAP BASIS)
(.GAAP BASIS)
RESULTS
(NEGATIVE)
TAXES:
UTILITY
BUSINESS
INTERGOVERNMENTAL
INVESTMENT EARNINGS
MISCELLANEOUS
EXPENDITURES:
CURRENT:
TRANSPORTATION
DEBT SERVICE
PRINCIPAL
INTEREST AND OTHER COSTS
CAPITAL OUTLAY
TOTAL EXPENDITURES
EXCESS (DEFICIENCY) OF REVENUES
OTHER FINANCING SOURCES (USES):
PROCEEDS OF LONG-TERM DEBT
TRANSFERS IN (Not-5)
TRANSFERS OUT (1vote1)
TOTAL OTHER FINANCING SOURCES AND USES
NET CHANGE IN FUND BALANCES
FUND BALANCES - BEGINNING
FUND BALANCES - ENDING
2,107,300
3,223,100
1,165,708
(2,057,392)
20,000
20,000
14,994
(5,006)
640,000
140,000
257,620
117,620
2.767300
3.383100
1.438.322
(1,944778)
6,849,100
7,445,984
4,043,771
3,402,213
35,600
35,600
35,578
22
9.400
9.400
1.456
7,944
1,720,000 1,800,000 921,400 (878,600)
2,072,800 2,273,840 1,524,151 (749,689)
- (296.700) (114.142) 182,558
(334,000) (330,744) (311,074) 19,670
The notes to the financial statements are an integral part of this statement.
43
CITY OF AUBURN: 2009 CAFR BASIC FINANCIAL STATEMENTS
C 17V fly
IT- Apppp-
URN
* MORE THAN YOU IMAGINED
44
CITY OF AUBURN: 2009 CAFR BASIC FINANCIAL STATEMENTS
MAJOR PROPRIETARY FUNDS
ENTERPRISE FUNDS
The City's enterprise funds are used to account for operations that are financed
and operated in a manner similar to private business operations. The goods and
services these funds provide to the general public are primarily financed by
service charges. Enterprise funds are self-supporting and use the accrual
method of accounting. Auburn has five major enterprise funds.
The Water Fund
This fund accounts for all maintenance, construction, and debt service
requirements associated with the water system.
The Sanitary Sewer Fund
This fund accounts for maintenance, construction, and debt requirements for
Auburn's sanitary sewer system.
The Storm Drainage Fund
This fund accounts for the maintenance, construction and debt service
requirements of Auburn's storm drainage system.
The Solid Waste Fund
Garbage collection services for the City are accounted for in this fund, supported
almost entirely by garbage collection fees. Expenses include payment to the
City's garbage contractor and other service charges.
The Golf Course Fund
Accounts for services, maintenance, and operations associated with the Auburn
Municipal Golf Course.
45
CITY OF AUBURN: 2009 CAFR BASIC FINANCIAL STATEMENTS
CURRENT ASSETS:
CASH AND CASH EQUIVALENTS
INVESTMENTS
RESTRICTED CASH:
BONDS PAYMENTS
CUSTOMER DEPOSITS
OTHER.
CUSTOMER. ACCOUNTS
OTHER RECEIVABLES
DUE FROM OTHER GOVERNMENTAL UNITS
INVENTORIES
TOTAL CURRENT ASSETS
NONCURRENT ASSETS:
LONG-TERM CONTRACTS AND NOTES
CAPITAL ASSETS:
LAND
BUILDINGS AND EQUIPMENT
IMPROVEMENTS OTHER THAN BUILDINGS
CONSTRUCTION IN PROGRESS
LESS: ACCUMULATED DEPRECIATION
TOTAL CAPITAL ASSETS (NET OF AD)
LIABILITIES:
CURRENT LIABILITIES:
CURRENT PAYABLES
CUSTOMER DEPOSITS
INTERFUND PAYABLES
LOANS PAYABLE-CURRENT
EMPLOYEE LEAVE BENEFITS-CURRENT
REVENUE BONDS PAYABLE-CURRENT
GENERAL OBLIGATION BONDS PAYABLE-CURRENT
ACCRUEDINTEREST
DEPOSITS
CITY OF AUBURN, WASHINGTON
STATEMENT OF NET ASSETS
PROPRIETARY FUNDS
DECEMBER j1, 2001
SANITARY STORM SOLID GOLF
7,112,183 $ 8,901,147 $ 3,902,561 $ 1,131,040 $ 92,801 $
2,004,773 2,023,437 1,017,813 - -
NON-MAJOR TOTAL
ENTERPRISE PROPRIETARY
2,037,751 $ 23,177,483 $ 12,126,037
- 5,046,023 -
272,508
-
95,746 - -
-
368254
-
35,606
18,471
- - -
69,888
123,965
-
357499
737,890
425,608 181,968
-
1,702,965
-
840,101
1,739,422
733,644 1,053,722 26,907
3,909
4397705
6,510
8,103
14,217
4,521 - -
-
26,941
-
-
-
I pvl 2nn 454 -
-
1 1L16 Fl54
- aRL
175,128
3
11,831
11,395
206,013
111,851
10,806,101
13,442,843
7,210,924 2272,216 301,676
2,122,943
36,156703
12,272,090
1,050,900
6,642 1,057,442
897,971
1,654,958
5,686,254
-
2,229,636
3,996,178
14464,997
-
2,344,538
1,131,744
297,853
496,618
6583,467
4,588,623
15442843
15,010,649
82,968,802
65,667,532
38,697,313
-
3,023,053
6,628,275
196,984,975
46,591
3,134,552
4,056,688
4,027,852
-
-
3,030,937
14250,029
432,238
(34,251 435)
(16 590 677)
(13 974 561)
(297,872)
(2.281.376)
(6,168,205)
(73564 125)
(8,785 759)
55,094 428
55 920 245
34.734.711
198,746
9.5-54.781
12,075 808
167 578719
6,703,719
393,169
1921,254
931,383
872,316 46,869
63,338
4228329
698,196
36,606
18,471
-
- -
-
54,077
5,725
-
-
-
- 59,375
-
59375
-
435,568
236,791
-
- -
-
672359
-
153,208
72,952
143,232
16,730 39,048
17,976
443,146
91,692
203,500
-
71,500
- -
-
275,000
-
-
-
-
- 190,000
85,000
275,000
-
100,848
14205
24 246
- -
-
139299
-
69,88R
69.888
1321,899
2,263,673
1,170,361
889,046 335,292
236,202
6216,473
695,613
NONCURRENT LIABILITIES:
DEFERRED REVENUE
42,200
162,203
597204
-
63315
6,642
871,464
-
EMPLOYEE LEAVE BENEFITS
50,635
24,110
47,338
5,529
12,905
5,941
146,458
30,306
LOANS PAYABLE
4452,631
3,572,974
-
-
-
-
8,025805
-
REVENUE BONDS PAYABLE
1452223
-
510241
-
-
-
1962464
-
GENERAL OBLIGATION BONDS PAYABLE
3,943171
1,680,940
5,624111
TOTAL OTHER NONCURRENT LIABILITIES
5,997,689
3,759,287
1,154,783
5,529
4,019,391
1,693,423
16,630,102
30,306
TOTAL LIABILITIES
NET ASSETS:
7319588
6,022,960
2,325,144
894,575
4,364,683
1,929,625
22846575
725,919
INVESTED IN CAPITAL ASSETS, NET OF RELATED DEBT
48,550,506
52,110,480
34,152,970
198746
5,298,921
10,309,869
150821,492
6,703,719
RESTRICTED FOR
DEBT SERVICE
630007
-
221,354
-
-
-
851361
-
RATE STABILIZATION
-
-
300,000
-
-
-
300000
-
CONSTRUCTION
-
737,890
-
-
181,968
-
919,858
-
UNRESTRICTED
9,400,428
11,542,658
4,946,167
1377641
20,885
1965,799
29253578
11,546,171
TOTAL NET ASSETS
$ 58580941 $
64,391,028 $
39,620,491 $
1,576,387 $
5,501,774 $
12,275,668
$ 181 946 289 $
18,249,890
Adjustment to reflect the consolidation
of internal service funds related to
enterprise funds =92 591
Net assets of business-type activities $ 182238,880
The notes to the financial statements are an integral part of this statement.
46
CITY OF AUBURN: 2009 CAFR BASIC FINANCIAL STATEMENTS
OPERATING REVENUES:
CHARGES FOR SERVICES
INTEREST
OTHER OPERATING REVENUE
OPERATING EXPENSES:
OPERATIONS & MAINTENANCE
ADMINISTRATION
DEPRECIATI ONIAM ORTIZATI ON
OTHER OPERATING EXPENSES
NON-OPERATING REVENUE (EXPENSE):
INTEREST REVENUE
OTHER NON-OPERATING REVENUES
GAIN ON SALE OF CAPITAL ASSETS
INTEREST EXPENSE
OTHER N(_)N-OPERATING EXPENSES
CITY OF AUBURN, WASHINGTON
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET ASSETS
PROPRIETARY FUNDS
FOR THE YEAR ENDED DECEMBER 31, 2009
$ 8,825,924 $ 14,902,464 $ 6,000,761 $ 9,599,236 $ 1,571,387 :6 1,354,251 $ 42,254,023 $ 9807,914
- - - - - 1,470 1,470 -
102 102 822,38`2 82,586 293,681
8,825,924 14,902,566 6,000,863 9,599,236 1,653,769 1,355,721 42,338,079 10,101,595
3,262
,764
12,215275
2,186,976
8,618,463
1,066,789
527267
27,877474
6,581,
135
2484
,844
2,106,258
2.2298,330
704,113
235,169
704,972
8,533,686
1,109,
613
2,104
,554
1,390,660
1 UG7,,55
20,534
334,025
3 3,1,79
.270,608
1,533
2^28
1,[in'"
[iEi6
1,221,015
5" ,2R4
1,67F-'x,556
621:'2
n4'K
4,5 n7:'4'.3
8,855
,227
16,934,008
6,168,145
11,019,666
1,698,116
1,574,015
46,189,117
9,223,
976
(29
,303)
(2,031,442)
(107,282)
(1,420,370)
(44,347)
(218,294)
(3,851,038)
877,
619
0
,079
37,796
611,4
4'_n
3,Ln'_
10,7,'!
611'
81
4
93
,286
19,820
1.04
87,696
15,347
2485,7159
3,;49,611
12,
683
-
-
-
-
4,626
3,095
7,721
(12,
790)
(114
,306)
(21,255)
(25,120)
-
(211,642)
(92,739)
(465,062)
-
CAF'IT4L C(_)NTF,1P1_ITICiNS
649,742
592,:'76
7571,141 - - -
1,'792,259
61445
TRAIM FERS IN (I'lote 5)
-
_9,425
- - `1,070 40,1700
185 495
204,100
TRANr FERS OUT(Nnte 5)
(166,100)
(50,0nn)
(I-,,i nnn)
(',54,1711-1)
(RR900)
CHANGE IN NET ASSETS
520,716
(1,266,154)
446,114 (1,326,186) (178,928) 2,228,579
430,141
1,136,781
TOTAL NET ASSETS BEGINNING OF YEAR
58,060,225
65,657,182
39,174,:3" 2,896,573 5,680,702 10,047,089
181,,16,148
17,113,109
TOTAL NET ASSETS END OF YEAR
$ 58,586,941
$ 64,391,028
$ 39,626,491 $ 1,576,387 $ 5,501,774 $ 12,275,668 $
181,946,289 $
18,249,890
Change in net assets from this statement
430,141
Adjustmentto reflectthe consolidation of internal service fund
activities related to enterprise funds
388,840
Change in net assets of business-type activities
818,981
The notes to the financial statements are an integral part of this statement.
47
CITY OF AUBURN: 2009 CAFR BASIC FINANCIAL STATEMENTS
CITY OFAUBURN, WASHINGTON
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
FOR THE FISCALYEAR ENDED DECEMBER 31. 2009
P.1Up I Irt
GOVERNMENT
NON-MAJOR
ACTIVITIES
SANITARY
STORM
SOLID
GOLF
ENTERPRISE
INTERNAL
WATER
SEWER
DRAINAGE
WASTE
COURSE
FUND
TOTAL
SERVICE FUNDS
CASH FLOWS FROM OPERATING ACTIVITIES:
CASH RECEIVED FROM USERS
$ 8,756,662 $
14,799,204 $
4,968,841 $
9,719,165 $
1,626,861
$ 1,346,353 $
41,217,086
$ 10,095,670
CASH PAID TO SUPPLIERS
(2,856,212)
(10,802,806)
(1,220,900)
(8,800,692)
(554,256)
(676,510)
(24,911,376)
(4,394,658)
CASH PAID FOR TAXES
(1,003,065)
(1,221,815)
(535,284)
(1,676,556)
(62,132)
(8,497)
(4507,350)
(5557)
CASH PAID FOR INVENTORY
67,524
709
(3,068)
-
-
(2,940)
62,225
32,084
CASH PAID TO EMPLOYEES
(2,910,578)
(2,002,983)
(2465,561)
(538,372)
(753,353)
!546,7271
(9,217,574)
(3,248,355)
OTHER CASH RECEIVED (P-1 Dl
NET CASH PROVIDED (USED)
BY OPERATIN G ACTIVITIES
2.054.330
77231n
744.028
(1.296456)
6,222
263342
111-678
6,222
2649.233
2479.184
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:
IN TERFUN D LOAN PAYABLE
-
-
-
-
(37,500)
-
(37500)
-
OPERATING GRANT RECEIVED
6,338
19820
-
55,266
-
-
814^_4
-
TPA,hISFEPS IIV
-
89425
-
-
54,070
40,000
186495
224,100
TRA,NSFEPE'OUT
NET CASH PROVIDED (USED) BY NON-
CAPITAL FINANCING ACTIVITIES
(155'1nn1
159
762
(50,0001
59
45
(1.TA ,DODJ
138
000
55
266
16
570
40
000
1'54 inn,
126
82
'_Annn1
116
100
,
(
)
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES:
2
,
(
)
,
,
,
(
6
)
,
PPOCEEDS FROM SALE OF EQUIPMENT
8,739
-
-
-
510
3.095
12,345
30406
PURCHASE OF CAPITAL ASSETS
(2,488,360)
(3,308868)
(4,457,976)
-
(144,736)
(2,688,758)
(13088697)
(2,520477)
CONTRIBUTED CAPITAL
401,788
134,545
324,301
-
15,347
-
875,981
3,300
CAPITAL GRANTS
-
-
1,047,703
-
-
-
1,047,703
-
PROCEEDS FROM OTHER GOVERNMENTS
-
22,500
-
-
-
2,485,259
2,507759
4,779
PROCEEDS FROM INSURANCE SETTLEMENT
185
-
-
-
-
-
185
4,605
PREMIUM& BOND ISSUANCE COSTS
10,505
-
13,877
-
4,666
9,774
38821
-
PRINCIPAL PAYNIENTON DEBT
(1,342,695)
(236,792)
(411,961)
-
(180,000)
(65,000)
(2,236,449)
-
INTEEESTPAYMENT ON DEBT
(152,284)
(20,231)
(44,295)
358
(216,404)
(93,233)
(526,089)
-
OTHERCASH RECEIVED (P.AID)
NET CASH PROVIDED (USED) FOR CAPITAL
AND RELATED FINANCING ACTIVITIES
(3
562
123)
(3
408
846)
(3
528
352)
358
(520
617)
500
(348
361)
500
(11
367
941)
(2
477
386)
CASH FLOW FROM INVESTING ACTIVITIES:
,
,
,
,
,
,
,
,
,
,
,
,
PROCEEDS FROM SALE OF INVESTMENTS
3,112,826
2,003,750
-
-
-
-
5,116,5 i6
-
PURCHA.SE OF INESTMEHTS
(2,000,0101
(2,100,0001
-
-
-
-
A 000,0001
-
IHTERESTRECEIED
NET CASH PROVIDED (USED) IN INVESTING ACTIVITIES
126 -0
1,239,209
137,210
140,960
n"",167
95,167
1'-1I'd
12,488
5,010
3,018
ill ER
10,758
335,024
1,501,600
00,923
88,923
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS
!428,345)
(2436,331)
(2,827,15:1
(1,228,343)
(237,687)
(185,925)
(7,343,789) 206,821
CASH AND CASH EQUIVALENTS-BEGINNING OF YEAR
8,206,141
12,093,839
7,251,071
2,359,383
512 455
2,293,564
32,716453 11,919,217
CASH AND CASH EQUIVALENTS-END OF YEAR
$ 7,777,796 $
9,657,508 $
4,423,914 $
1,131,040 $
274,769 $
2,107,639 $
25,372,665 $ 12,126,037
CASH AT END OF YEAR CONSISTS OF
CASH AND CASH EQUIVALENTS
$ 7,112,183 $
8,901,147 5
3,902,56'1 $
1,111,040 5
66431 $
2037,761 $
23,151,112 $ 12,126,038
RESTRICTED CASH-BOND PAYMENTS
5.;1,007
737,890
521,554
-
-6070
-
1,915,621 -
RESTRICTEDCASH-CUSTOKIER DEPOSITS
TOTAL CASH
2.9,505
$ 7,777,796 $
18471
9,657,508 $
4A 14 '1
1,131,040 '1
181,908
274,769 $
2,107,,-P 1
305,933
25372`,665 $ 12,126,038
The notes to the financial statements are an integral part of this statement.
48
CITY OF AUBURN: 2009 CAFR BASIC FINANCIAL STATEMENTS
CITY OF AUBURN, WASHINGTON
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
FnP THE H HGA,LYEAR ENDED DECEPdIEER ?1 2nn,2
Pane 2 nt?
GOVERNMENT
NON-MAJOR
ACTIVITIES
SANITARY STORM SOLID
GOLF ENTERPRISE
INTERNAL
WATER SEWER DRAINAGE WASTE
COURSE FUND
TOTAL SERVICE FUNDS
RECONCILIATION OF NET OPERATING INCOME TO NEW CASH
PROVIDED BY OPERATING ACTIVITIES
ADJUSTMENTS TO RECONCILE OPERATING INCOME TO NET CASH
PROVIDED (USED) BY OPERATING ACTIVITIES:
DEPRECIATION
2,104,554
1,390,660
1,087,555
20,534
334,026
333,278
5,270,607
1,533,229
ASSET (INCREASES) DECREASES
ACCOUNTS RECEIVABLE
(71,124)
(103,362)
(1,032,022)
119929
(26,908)
0
(1,113,486)
(21,192)
INVENTORY
67,524
709
(3,068)
-
-
(2940)
62,225
32,084
LIABILITY (INCREASES) DECREASES:
ACCOUNTS&VOUCHERS PAYABLE
(84,792)
1,491,782
712,447
(24,122)
(4,866)
(418)
2,090,030
(10,440)
DEPOSITS PAYABLE
1,861
0
-
-
-
(9,369)
(7,508)
5,725
WA.GES& BENEFITS PAYABLE
281
4,728
48
3,183
3,441
895
12,576
43473
COMPENSATED ABSENCES PAYABLE
65,329
19,235
86,350
4,391
(4,226)
8,526
179,605
18,687
DEFERRED REVENUE
6,222
6,222
TOTAL ADJUSTMENTS
2,083,632
2,803,753
851,310
123,914
307,689
329,973
6,500,270
1,601,565
NET CASH PROVIDED (USED) BY OPERATING ACTIVITI
ES 2,054,330
772,310
744,028
(1,296,456)
263,342
111,678
2,649,233
2,479,184
SCHEDULE OF NONCASH INVESTING. CAPITAL AND
FINANCING ACTIVITIES
CA.PITA.L ASSETS. ACQUIRED BY CONTRIBUTED CAPITAL $ 325,978 $
INCREASE (DECREASE) IN FAIR VALUE OF INVESTMENT 4,773
457,831 $ 425,841 $
23,438 (34,688)
$ 1,209,650 $ 61,445
(6,477) -
The notes to the financial statements are an integral part of this statement.
49
CITY OF AUBURN: 2009 CAFR BASIC FINANCIAL STATEMENTS
C 17V fly
IT- Apppp-
URN
* MORE THAN YOU IMAGINED
50
CITY OF AUBURN: 2009 CAFR BASIC FINANCIAL STATEMENTS
FIDUCIARY FUNDS
Fiduciary funds are used to account for assets held by the City of Auburn as a
trustee or agent for various individuals, private organizations, and other
governmental units. The Fire Relief and Pension Fund is accounted for on an
accrual basis. The agency fund is custodial in nature; therefore, no annual
budget is adopted.
TRUSTFUNDS
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 custo-
dian.
51
CITY OF AUBURN: 2009 CAFR BASIC FINANCIAL STATEMENTS
CITY OF AUBURN, WASHINGTON
STATEMENT OF FIDUCIARY NET ASSETS
FIDUCIARY FUNDS
DECEMBER 31, 2009
FIRE
RELIEF
PENSION AGENCY
TRUSTFUND FUND
ASSETS:
CASH AND CASH EQUIVALENTS $ 1,752,435 $ 1,679,840
INVESTMENTS 1,080,715 -
RECEIVABLES:
CUSTOMER ACCOUNTS - 2,621
INTEREST 735 -
DUE FROM OTHER GOVERNMENTAL UNITS - -
TOTAL ASSETS $ 2,833,885 $ 1,682,461
LIABILITIES:
CURRENT PAYABLES
TOTAL LIABILITIES
NET ASSETS:
HELD IN TRUST FOR PENSION BENEFITS
$ 5,243 $ 1,682,461
5,243 1,682,461
The notes to the financial statements are an integral part of this statement.
52
CITY OF AUBURN: 2009 CAFR BASIC FINANCIAL STATEMENTS
CITY OF AUBURN, WASHINGTON
STATEMENT OF CHANGES IN FIDUCIARY NET ASSETS
FIDUCIARY FUNDS
FOR THE YEAR ENDED DECEMBER 31, 2009
INVESTMENT EARNINGS 11,455
DEDUCTIONS:
BENEFIT PAYMENTS
160,811
PROFESSIONAL SERVICES
7,350
ADMINISTRATIVE EXPENSES
TOTAL DEDUCTIONS
13,418
181,579
NET ASSETS- BEGINNING
NET ASSETS - ENDING
2,940.766
$ 2,828,642
The notes to the financial statements are an integral part of this statement.
53
FIRE INSURANCE PREMIUMS-TRANSFERRED FROM GENERAL FUND $ 58,000
CITY OF AUBURN: 2009 CAFR BASIC FINANCIAL STATEMENTS
C 17V fly
IT- Apppp-
URN
* MORE THAN YOU IMAGINED
54
CITY OF AUBURN: 2009 CAFR NOTES TO THE FINANCIAL STATEMENTS
City of Auburn
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2009
NOTE 1 -
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
........56
A.
REPORTING ENTITY
.........56
B.
BASIC FINANCIAL STATEMENTS
56
C.
MEASUREMENT FOCUS, BASIS OF ACCOUNTING, AND
BASIS OF PRESENTATION
57
D.
BUDGET AND BUDGETARY ACCOUNTING
60
E.
ASSETS, LIABILITIES, AND FUND EQUITY
61
1. DEPOSITS AND INVESTMENTS
61
2. RECEIVABLES
.........62
3. INTERFUND RECEIVABLES AND PAYABLES
62
4. AMOUNTS DUE FROM OTHER GOVERNMENTAL UNITS
62
5. INVENTORIES
62
6. RESTRICTED ASSETS
62
7. INTERFUND TRANSACTIONS
63
8. CAPITAL ASSETS
63
9. DEFERRED CREDITS/CHARGES
63
10. COMPENSATED ABSENCES
64
11. DEFERRED REVENUES
64
12. RESERVATIONS AND DESIGNATIONS OF FUND EQUITY
64
F.
REVENUES, EXPENDITURES AND EXPENSES
64
G.
ESTIMATES
.........65
NOTE 2 -
STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY
65
NOTE 3 -
DEPOSITS AND INVESTMENTS
66
NOTE 4 -
PROPERTY TAXES
68
NOTE 5 -
INTERFUND ACTIVITY
69
NOTE 6 -
DUE FROM OTHER GOVERNMENTAL UNITS
71
NOTE 7 -
CAPITAL ASSETS AND DEPRECIATION
73
NOTE 8 -
CAPITAL LEASE OBLIGATION
74
NOTE 9 -
LONG-TERM DEBT
75
NOTE 10
- PENSION PLANS
78
NOTE 11
-OTHER POST EMPLOYMENT BENEFITS
87
NOTE 12
- ASSOCIATION OF WASHINGTON CITIES EMPLOYEE BENEFIT TRUST
89
NOTE 13
-CONSTRUCTION COMMITMENTS
89
NOTE 14
-CEMETERY ENDOWED CARE FUND
90
NOTE 15
- JOINT VENTURES / RELATED PARTY
90
NOTE 16
- JOINTLY GOVERNED ORGANIZATION / RELATED PARTY
93
NOTE 17
-CONTINGENCIES AND LITIGATION
94
NOTE 18
- RISK MANAGEMENT & INSURANCE
94
NOTE 19
- SUBSEQUENT EVENT
95
55
CITY OF AUBURN: 2009 CAFR NOTES TO THE FINANCIAL STATEMENTS
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The City of Auburn, King County, Washington, was incorporated in 1891. It operates under the
laws of the State of Washington applicable to a Non-Charter Code City under a Mayor/Council
form of government. A full-time mayor and seven part-time council members administer Auburn,
all elected at-large to four-year terms. The City provides a range of municipal services authorized
by state law, including water services, sanitary sewer collection, solid waste collection, storm
drainage, a general aviation airport, a municipal cemetery and a municipal golf course.
The accounting and reporting policies of the City of Auburn, which conform to Generally Accepted
Accounting Principles (GAAP) for governments, are regulated by the Washington State Auditor's
Office. The City's significant accounting policies are described in the following notes.
A. REPORTING ENTITY
In accordance with the criteria set forth in Statement No. 14 of the Governmental
Accounting Standards Board (GASB) the City's Comprehensive Annual Financial Report
(CAFR) includes all funds controlled by the City.
Joint Ventures - Based on the criteria of Governmental Accounting Standards Board
(GASB) Statement No. 14 as modified by GASB Statement No. 34, the Valley
Communications Center and South Correctional Entity Facility (SCORE) are included in
the accompanying government-wide statement of net assets as joint ventures. (Please
refer to Notes 9 and 15).
Jointly Governed Organizations - The cities of Auburn, Algona and Pacific formed the
Valley Regional Fire Authority (VRFA) effective January 1, 2007. The VRFA is a
separate municipal corporation of the State of Washington, organized as a regional fire
protection service authority under RCW 52.26. The VRFA is not financially accountable
to the member cities, none of the participating cities has an ongoing financial interest in
the VRFA, and the VRFA is not financially dependent upon any member city. The VRFA
imposes its own property tax levy and fire benefit charge.
The government-wide financial statements consist of the government-wide statement of
net assets and the government-wide statement of activities.
B. BASIC FINANCIAL STATEMENTS
The City's basic financial statements consist of government-wide financial statements
and fund financial statements. The government-wide financial statements, which include
the statement of net assets and the statement of activities, summarize the entire
operation of the City. The governmental fund financial statements, which include
balance sheets, statements of revenues, expenditures and changes in fund balances,
and budget and actual statements, provide a more detailed level of reporting. The
proprietary fund financial statements, which include statement of net assets, statement of
revenues, expenses, and changes of net assets and statements 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.
56
CITY OF AUBURN: 2009 CAFR NOTES TO THE FINANCIAL STATEMENTS
The statement of activities demonstrates the degree to which the direct expenses of
various functions and activities of the City are offset by program revenues. Direct
expenses are those that are clearly identifiable with a specific function or activity.
Program revenues include 1) charges to customers or applicants who purchase, use, or
directly benefit from goods, services or privileges provided by a function or activity, and
2) grants and contributions that are restricted to meeting the operational or capital
requirements of a particular function or activity. Taxes and other items that are not
properly included among function or activity revenues are instead reported as general
revenues. The City does not allocate indirect expenses to functions in the statement of
activities.
Separate financial statements are included for government funds, proprietary funds, and
fiduciary funds, even though fiduciary funds are excluded from the government-wide
financial statements. Major individual governmental funds and major individual
enterprise funds are reported in separate columns in the fund financial statements.
C. MEASUREMENT FOCUS, BASIS OF ACCOUNTING, AND BASIS OF
PRESENTATION
The accounts of the City are organized on the basis of funds, each of which is
considered a separate accounting entity. Each fund is accounted for with a separate set
of self-balancing accounts that comprise its assets, liabilities, fund equity, revenue, and
expenditures or expenses, as appropriate. The City resources are allocated to, and
accounted for in, individual funds according to the purpose for which they are spent and
how they are controlled.
The basis of accounting refers to the timing of when revenues and expenditures or
expenses are recognized in the accounts and reported in the financial statements.
The government-wide financial statements are reported using the economic resources
measurement focus and the accrual basis of accounting, as are the proprietary and
pension trust fund financial statements. Interfund services provided and used are not
eliminated in the process of consolidation. Governmental fund financial statements are
reported using the current financial resources measurement focus and the modified
accrual basis of accounting.
The modified accrual basis of accounting is followed in all governmental and permanent
funds of the City. Under the modified accrual basis of accounting, revenues are
recognized when measurable and available. Revenues are generally considered
available if they are collected within the current period or soon enough thereafter (30
days) to pay current liabilities. For derived tax revenues, such as sales tax and utility
business and occupation taxes, revenues are recognized in the period when the
underlying exchange has occurred. For imposed non-exchange taxes, such as 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
57
CITY OF AUBURN: 2009 CAFR NOTES TO THE FINANCIAL STATEMENTS
uncollected at year-end are reported as "deferred revenue", since they are not
considered to be available.
Sales Tax Revenues - The State of Washington collects all sales taxes. Auburn's
portion is remitted to the City by the State monthly. The sales tax received in January is
recognized as revenue in current year even though received in the subsequent year
because of when the underlying transaction occurred and the resources are considered
to be measurable and available.
Grant Revenues - On cost reimbursement, grant revenue is recognized when the
expenditure is incurred.
Under the modified accrual basis, expenditures are recorded when the fund liability is
incurred, except for the un-matured interest and principal on general long-term debt,
which is recognized when due, and for compensated absences which are recorded as
expenditures when liquidated from expendable available fund resources. Purchases of
capital assets from governmental funds are reported as expenditures during the year
incurred and the asset is capitalized and reported on the government-wide statement of
net assets. Long-term liabilities, including compensated absences not currently due and
payable, are also reported on the government-wide statement of net assets.
The accrual basis of accounting is followed in all proprietary, agency, and pension trust
funds. Under the accrual basis of accounting, revenues are recognized when earned
and expenses are recorded when incurred.
The three broad fund categories and nine fund types presented in this report are
described below:
1. GOVERNMENTAL FUND TYPES
All governmental funds are accounted for on a spending or "financial flow"
measurement focus. This means that only current assets and current liabilities
generally are included on their balance sheets. Their reported fund balance (net
current assets) is considered a measure of "available spendable resources".
Governmental fund operating statements focus on measuring cash flows rather than
net income; they present increases (revenues and other financing sources) and
decreases (expenditures and other financing uses) in net current assets.
a. General fund - This fund is used to account for all financial resources and
transactions of the City not accounted for in another fund, as required. The
general fund is always considered a major fund.
b. Special Revenue funds - These funds are used to account for the proceeds
of specific revenue sources (other than major capital projects) that are legally
restricted to expenditures for specified purposes. One special revenue fund
is considered major: the arterial street fund. This fund is supported by the
State of Washington's one-half cent gas tax and is used for major street
construction
c. Debt Service funds - These funds account for the accumulation of resources
for, and the payment of, general long-term and special assessment debt
principal, interest, and related costs. These funds also include the LID
guarantee fund which provides financial security for outstanding LID bonds.
d. Capital Projects funds - These funds are used to account for financial
resources to be used for the acquisition or construction of major capital
58
CITY OF AUBURN: 2009 CAFR NOTES TO THE FINANCIAL STATEMENTS
facilities other than those financed by proprietary funds. One capital project
fund is considered major: the capital improvement projects fund. This fund
accounts for major capital acquisitions, and street and parks construction
projects.
e. Permanent funds - These funds are used to account for resources that are
legally restricted to the extent that only earnings, and not principal, may be
used for purposes of supporting a specific City program.
2. PROPRIETARY FUND TYPES
Financial statements for proprietary funds use the economic resources measurement
focus and the accrual basis of accounting. This means that all assets and all
liabilities (whether current or non-current) associated with their activity are included
on their Statement of Net Assets. Under the accrual basis of accounting, revenues
are recognized when earned and expenses are recorded when incurred. The
proprietary fund measurement focus is applied in the determination of financial
position, net income, and cash flow.
Proprietary funds distinguish operating revenues and expenses from non-operating
items. Operating revenues and expenses generally result from providing services
and producing and delivering goods in connection with a proprietary fund's principal
ongoing operations. The principal operating revenue of the City's utility funds, other
enterprise funds, and internal service funds are charges to customers for sales and
services, vehicle and computer replacement, and insurance. Operating expenses for
enterprise funds and internal service funds include the cost of sales and services,
administrative expenses, taxes, and depreciation on capital assets. All revenues and
expenses not meeting this definition are reported as non-operating revenues and
expenses, or as capital contributions. Substantially all proprietary fund operating
revenues are used as security for revenue bonds.
Pursuant to Statement No. 20 of the Governmental Accounting Standards Board
(GASB), Accounting and Financial Reporting for Proprietary Funds and Other
Governmental Entities That Use Proprietary Fund Accounting, the City has chosen to
apply all applicable GASB pronouncements as well as the following pronouncements
issued on or before November 30, 1989, unless those pronouncements conflict with
or contradict GASB pronouncements: FASB Statements and Interpretations, APB
Opinion, and ARBs.
a. Enterprise funds - These funds are used to account for services to the
general public where all or most of the costs, including depreciation, are to
be financed or recovered from users of such services. Five enterprise funds
are considered major funds. Utilities provided to residents are accounted for
in the water fund, sanitary sewer fund, storm drainage fund and the solid
waste fund. The golf course fund is used to account for business operations
at the City's municipal golf course.
b. Internal Service funds -These funds are used to account for the financing of
goods and services provided to other funds, departments, or governments on
a cost reimbursement basis. The City uses internal service funds to account
for its fleet of vehicles, its maintenance and operation of facilities, the City-
wide provision of computer hardware and software services, and its
insurance premiums.
59
CITY OF AUBURN: 2009 CAFR NOTES TO THE FINANCIAL STATEMENTS
3. FIDUCIARY FUND TYPES
Fiduciary funds are used to account for assets held by the City in a trustee capacity
or as an agent for individuals, private organizations, other governments, and/or other
funds. These include a Fire Relief and Pension Trust Fund and Agency Fund. Each
fiduciary fund is classified for accounting measurement purposes as either a
governmental fund or a proprietary fund.
The Fire Relief and Pension Trust Fund is accounted for on the accrual basis in
essentially the same manner as proprietary funds since capital management is
critical. Based on actuarial recommendations, there are no employee or employer
contributions to the Fire Relief and Pension Plan. Pension benefits are recognized
when due; plan administration costs are also recognized when incurred in this fund.
The Agency Fund is custodial in nature (assets equal liabilities) and does not involve
a measurement of results of operations.
D. BUDGET AND BUDGETARY ACCOUNTING
The City of Auburn budgets in accordance with the Revised Code of Washington (RCW)
35A.33 for the general and special revenue funds. For governmental funds, there are no
substantial differences between the budgetary basis and generally accepted accounting
principles. Budgetary accounts are integrated in fund ledgers for all budgeted funds, but
the financial statements include budgetary comparisons for the biennial budgeted
governmental funds only. Budgets established for proprietary and trust funds are
"management budgets", and are not legally required to be reported and, as such, are not
reported in the CAFR.
The biennial budget is proposed by the Mayor and adopted by the City Council with legal
budgetary control at the fund level; i.e., expenditures and other financing sources may
not exceed budgeted appropriations at the fund level. The Mayor may authorize
transfers within funds; however, the City Council must approve by ordinance any
amendments that increase the total for the fund. Any unexpended appropriation
balances lapse at the end of the fiscal year.
The City prepares the biennial budget on the modified accrual basis, which conforms to
Generally Accepted Accounting Principles (GAAP). The CAFR includes budgetary
comparisons for those governmental funds with legally adopted budgets. Budget
amounts include the adopted current year budget appropriations and any revisions
made during the year.
State law establishes the budget process and the time limits under which a budget must
be developed. The City follows the procedures outlined below to establish its biennial
budget:
1. Sixty days prior to each odd numbered fiscal year, the Mayor submits to the City
Council a preliminary budget for the biennium commencing the following January
15t. The operating budget includes proposed expenditures and funding sources.
2. Public hearings are conducted at the Auburn City Council Meetings to obtain
taxpayer comments.
3. Prior to December 3151, the budget is legally enacted through passage of an
ordinance.
60
CITY OF AUBURN: 2009 CAFR NOTES TO THE FINANCIAL STATEMENTS
4. The final operating budget as adopted is published and distributed after adoption.
Copies of the budget are made available to the public.
The following represents the original budgeted amounts and all supplemental
appropriations.
ORIGINAL AND SUPPLEMENTAL APPROPRIATIONS
Original
Final
Budget Revisions Budget
Governmental funds
General fund $ 55,747,000 $ 576,450 $ 56,323,450
Total governmental funds 55,747,000 576,450 56,323,450
Special revenue funds:
Local street 2,200,000 220,150 2,420.150
Arterial street
Hotel/motel tax
Arterial street preservation
Drug forfeiture fund
Local law enforcement block grant
Housing and community development
Recreation trails
Business improvement area
Cumulative reserve
Mitigation fees
Total special revenue funds
Total budgeted funds
6,894,100
893,584 7,
787,684
153,000
32,000
185,000
1,500,000
319,000 1,
819,000
355,700
38,860
394,560
14,400
-
14,400
600,900
(880j
600,020
7,800
7,800
53,000
53,000
E. ASSETS, LIABILITIES, AND FUND EQUITY
1. DEPOSITS AND INVESTMENTS
It is the City's policy to invest all temporary cash surplus. At December 31, 2009, the
Washington State Local Government Investment Pool (LGIP) was holding
$75,933,234 in short-term investments. This amount is classified on the balance
sheet as cash and cash equivalents. The interest on these investments is prorated
to the various funds based upon ownership of investments. For purposes of the
Statement of Cash Flows, cash and cash equivalents includes cash on deposit with
financial institutions in both demand and time deposit accounts, and amounts
invested in the Local Government Investment Pool, administered by the State
Treasurer's Office because it is operated in a manner consistent with a Securities
and Exchange Commission's Rule 2a-7of the Investment Company Act of 1940. The
State Finance Committee is the administrator of the statute that created the pool and
adopts appropriate rules. The State Treasurer's Office is responsible for establishing
the investment policy for the pool and reviews it annually. Any proposed changes are
reviewed by the LGIP Advisory Committee. The terms of the policy are designed to
ensure the safety and liquidity of the funds deposited in the LGIP.
The City, by state law, is authorized to purchase certificates of deposit issued by
Washington State depositories that participate in Washington Public Deposit
Protection Commission (WPDPC), U.S. Treasury and Agency securities, banker's
acceptances, and repurchase agreements. The City purchases repurchase
61
CITY OF AUBURN: 2009 CAFR NOTES TO THE FINANCIAL STATEMENTS
agreements only from institutions that use authorized securities for collateral. The
City of Auburn also has signed a "master repurchase agreement" with its primary
bank, Key Bank.
For purposes of the statement of cash flows, all proprietary fund types and similar
trust funds consider all highly liquid investments (including restricted assets) with
maturity of three months or less when purchased to be cash equivalents.
Investments are recorded at fair value. Adjustments are made to cost for
investments amortized over the period to maturity in accordance with GASB
Statement No. 31. The investment in the state investment pool is valued at the
pool's share price.
2. RECEIVABLES
Taxes receivable consist of property taxes (see Note 4). Accrued interest receivable
consists of amounts earned on notes and contracts at the end of the year.
Customer accounts receivable consist of amounts owed by private individuals or
organizations for goods and services provided. Uncollectible amounts are
considered immaterial and the direct write-off method is used.
Special assessments are levied against certain property owners and become liens
against the property benefited by the improvement. Special assessments receivable
consist of current assessments, which are due within one year, delinquent
assessments remaining unpaid after the due date, and deferred, uncollected
assessments, which have been levied, but are not due within one year.
Other receivables include utility taxes due from private organizations and customer
accounts receivable, which consist of amounts owed from private individuals or
organizations for goods and services, including amounts owed for which billings
have not been prepared. Notes and contracts receivable consist of amounts owed
on open accounts from private individuals or organizations for goods and services
rendered.
3. INTERFUND RECEIVABLES AND PAYABLES
These accounts include all interfund receivables and payables. A separate schedule
of interfund activity is furnished in Note 5.
4. AMOUNTS DUE FROM OTHER GOVERNMENTAL UNITS
This account includes amounts due from other governments for grants, entitlements
and charges for services. A schedule by fund of amounts due from other
governmental units is presented in Note 6.
5. INVENTORIES
Inventories in the enterprise and internal service funds are valued at cost using the
weighted average costing method. Governmental fund types recognize the cost of
inventory items as expenditures when purchased. In governmental funds, materials
and supplies remaining at year-end are immaterial and not included in inventory.
6. RESTRICTED ASSETS
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CITY OF AUBURN: 2009 CAFR NOTES TO THE FINANCIAL STATEMENTS
There are three types of restricted assets: customer deposits, proceeds of revenue
bonds issued by City utilities that are restricted by applicable bond ordinances to pay
bond and construction costs, and funds contributed by the Muckleshoot Indian Tribe
that have been restricted for use in certain construction projects.
7. INTERFUND TRANSACTIONS
During the course of normal operations, the City has numerous transactions
between City funds. Interfund services provided and used, such as buying goods
and services, are recorded as revenues and expenditures. Internal service fund
billings are recorded as revenues in the equipment rental fund and as expenditures
in the paying fund. Transfers between funds are included as "other financing
sources or uses".
8. CAPITAL ASSETS
Capital assets are recorded at historical cost when known or at estimated historical
cost when actual costs are not known. Infrastructure, such as roads, bridges and
water mains, is reported in the applicable government or business-type activities
columns in the government-wide statement of net assets. All infrastructure costs
have been calculated and are reported. Government-donated capital assets are
stated at their market value on the date donated.
Major outlays for capital assets and improvements are capitalized as projects are
constructed. The costs of normal maintenance and repairs that do not add to the
value of the asset or materially extend asset lives are not capitalized.
Capital assets of enterprise and internal service funds are recorded at cost. The
capital assets of the airport are carried at cost and include those acquired with
capital contributed by the Federal Government. Capital improvements financed by
special assessments that provide capital assets to a government's proprietary funds
are capitalized on the fund's balance sheet and are offset by equity.
Capital assets of all funds are depreciated, and are calculated on the straight-line
method using estimated lives as follows:
Asset
Capitalization
Threshold
Depreciation
Method
Estimated
Useful Life
Building
$5,000
Straight-line
20 - 50 years
Other Improvements
$5,000
Straight-line
10 - 50 years
Equipment/Machinery
$5,000
Straight-line
2 - 20 years
Infrastructure
$5,000
Straight-line
25 - 50 years
Utility Plant
$5,000
Straight-Line
25 - 50 years
At the inception of capital leases at the government fund reporting level, the net
present value of future minimum lease payments allocable to the capital asset is
reflected as expenditures and an "other financing source" of an equal amount.
9. DEFERRED CREDITS/CHARGES
Deferred charges and credits include the premium, discount and issuance costs of
revenue bonds that are amortized over the life of the bond issue. Deferred credits
and charges also include undistributed court receipts.
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CITY OF AUBURN: 2009 CAFR NOTES TO THE FINANCIAL STATEMENTS
10. COMPENSATED ABSENCES
City employees accrue vacation leave at a variable rate based on years of service.
In general, employees are allowed to accumulate vacation leave up to what would be
earned in two years.
Unaffiliated employees accrue sick leave at the rate of eight hours per month up to
960 hours. Sick leave accumulations over 960 hours at year-end are paid at 25%.
Sick leave is not paid upon termination except in some instances upon separation in
good standing, where employees hired before 12/31/1984 can be reimbursed at their
current rate for unused sick leave up to a maximum of 960 hours, at a rate based on
years of service. The City's union contracts have varied sick leave accruals and
payout options.
In general, non-exempt employees can accrue up to 80 hours of compensatory time.
The City reports compensated absences as liabilities in the government-wide
statement of net assets and in proprietary funds. Vacation, compensatory time, and
sick leave are calculated separately for each employee using the rules described
above. The reporting format is in compliance with GASB statement no. 16.
Governmental funds recognize expenditures for vacation, sick, and compensatory
time when paid. Proprietary and pension trust funds recognize the expense and
accrue a liability for vacation and sick leave pay as the leave is earned.
All compensated absence liabilities include salary-related payments, where
applicable.
11. DEFERRED REVENUES
This account reflects the amounts of taxes and other long-term receivables for which
the revenue recognition criteria have not been met. It also reflects prepayments on
accounts and grants received in advance.
12. RESERVATIONS AND DESIGNATIONS OF FUND EQUITY
In governmental funds, reserves are used to indicate a portion of fund balance that is
not appropriable for expenditure or is legally segregated, and designations are used
to indicate tentative managerial plans for financial resource utilization in a future
period. In proprietary funds, net assets are generally restricted in connection with
restricted assets or for legal segregation. These restrictions are identified on the
statement of net assets of each fund type.
F. REVENUES, EXPENDITURES AND EXPENSES
Under the modified accrual basis of accounting:
Charges for services, interest on investments, and rents generally are considered
measurable and available when earned in governmental funds.
Taxes and federal or state entitlements or shared revenues that have been collected
but not remitted by an intermediary collection agency to the City are considered
measurable and available.
64
CITY OF AUBURN: 2009 CAFR NOTES TO THE FINANCIAL STATEMENTS
Special assessments are considered measurable and available when they become
due.
Grants are considered measurable and available to the extent that expenditures have
been made. Other intergovernmental revenues are considered measurable and
available when earned.
Interfund revenues for goods and services are considered measurable and available
when earned.
Proceeds from sale or loss of capital assets are recognized as other financing
sources.
Revenues from taxpayer-assessed taxes (i.e., sales tax), net of estimated refunds,
are recognized when measurable and available to finance expenditures of the current
period.
All other revenues are either not measurable or considered not available until
collected.
Expenditures are generally recognized when incurred, except for principal and
interest on general long-term debt, which are reported as expenditures when paid,
and compensated absences, which are reported as expenditures when liquidated
from expendable available financial resources.
Under the accrual basis of accounting:
Revenues are recognized when earned and expenses are recognized when incurred.
Contributions of capital in proprietary fund financial statements arise from internal
and external contributions of capital assets or from grants or outside contributions of
resources restricted to capital acquisition and construction.
Transfers between government and business-type activities on the government-wide
statement of activities are reported as general revenues. Transfers between funds
reported in the governmental activities column are eliminated, as are transfers between
funds reported in the business-type activities column.
G. ESTIMATES
The preparation of the financial statements in conformity with accounting principles
generally accepted in the United States requires management to make estimates and
assumptions that affect the amounts reported in the financial statements and
accompanying notes. Actual results may differ from those estimates.
NOTE 2 - STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY
There have been no material violations of finance-related legal or contractual provisions, and
there have been no expenditures exceeding legal appropriations in any of the funds of the City of
Auburn.
65
CITY OF AUBURN: 2009 CAFR NOTES TO THE FINANCIAL STATEMENTS
NOTE 3 - DEPOSITS AND INVESTMENTS
At December 31, 2009, the carrying amount of the City's cash demand deposits with Key Bank
totaled $2,843,373 while the bank balance was $3,418,166. In addition, there was $10,000 in the
Drug Forfeiture Fund to be used for enforcement purposes, and $6,900 in various petty cash and
cashier change funds.
The Federal Deposit Insurance Corporation (FDIC) insures the City's deposits up to $250,000.
The Washington Public Deposit Protection Commission (WPDPC) (established under Chapter
39.58 of the Revised Code of Washington) constitutes a multiple financial institution collateral
pool. Pledged securities under the WPDPC collateral pool are held by the WPDPC's agent in the
name of the collateral pool.
As required by State law, all investments of the City's funds are obligations of the U.S.
Government, or deposits with Washington State banks that participate in the WPDPC. Pension
and permanent funds are not subject to these limitations. All temporary investments are stated at
cost. Other investments are shown on the balance sheet at fair value. Investments that were not
at par value (cost) as of December 31, 2009 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 2009, the net decrease in the fair value of investments being held for more than one year
is $45,534 at year-end.
As of December 31, 2009, the City had the following investments and maturities
SCHEDULE OF INVESTMENTS BY MATURITIES
AS OF DECEMBER 31. 2009
Investment maturities
Fair Less than 1 to 2 2 to 3 Greater than
Investment Type Value 1 year years years 3 years
State investment pool $ 75.933,234 $ 75.933.234 $ $ $ -
US Treasuries 86,652 - 86,652
US Agencies 10,031.648 1.017,813 2,023.438 6,990,398 -
$ 86,051,534 $ 76,951,047 $ 2,023,438 $ 6,990,398 $ 86,652
Reconciliation to government-
wide statement of net assets:
Total investments above $ 86,051,534
Plus: cash in checking and petty cash 2,918,301
Less: cash investments in fiduciary funds (4,512,990)
Total cash and investments, government-
wide statem ent of net assets $ 84.456,845
66
CITY OF AUBURN: 2009 CAFR NOTES TO THE FINANCIAL STATEMENTS
Reconciliation of Cash and Investments
Government-Wide Statement of Net Assets
As of December 31. 2009
Activities
Activities
Total
Cash and Cash Equivalents $
37,853,416 $
23,177,483 $
61,030,899
Cash with Outside Agencies
-
-
-
Investments
3,991,562
5,046,023
9,037,585
Temporarily Restricted:
Cash and Cash Equivalents
10,993,821
2,195,184
13,189,005
Permanently Restricted:
Cash and Cash Equivalents
1,199, 356
-
1,199,356
$
54,038,155 $
30,418,690 $
84,456,845
Interest Rate Risk
Interest rate risk is the risk that changes in interest rates of debt investments will adversely affect
the fair value of an investment. As a means of limiting its exposure to fair value losses arising
from rising interest rates, the City's investment policy limits the maximum maturity of an
investment to not greater than three years, unless an investment is matched to an anticipated
future cash flow. The segmented time distribution presented in the schedule of investments by
maturity above indicates how the City has managed its interest rate risk.
Credit Risk
Credit risk is the risk that an issuer or other counterparty to an investment will not fulfill its
obligations. State law and the City's investment policy limits the instruments in which the City
may invest. These include:
1. United States bonds.
2. United States certificates of indebtedness.
3. Bonds or warrants of the State of Washington.
4. General obligation or utility revenue bonds or warrants of its own or of any other city or
town in the State.
5. Its own bonds or warrants of a local improvement district which are within the protection
of the local improvement guaranty fund.
6. Savings or time accounts in designated public depositories.
7. Certificates, notes or bonds of United States agencies, or corporations wholly owned by
the United States.
8. Repurchase agreements.
9. Banker's acceptances.
10. Federal Home Loan Bank notes and bonds, Federal Land Bank bonds, Federal National
Mortgage Association notes, debentures and guaranteed certificates of participation, or
obligations of any other government sponsored corporation whose obligations are or may
be eligible as collateral for advances to member banks as determined by the Board of
Governors of the Federal Reserve System or any portion thereof in investment deposits
as defined in RCW 39.8.010 secured by collateral in accordance with RCW 39.58.
11. Interim financing warrants of local improvement districts.
12. State Local Government Investment Pool.
As of December 31, 2009, the City had investments in a limited number of investment
instruments as follows:
• Federal Home Loan Bank bonds
• Federal Home Loan Mortgage Corporation bonds
• U.S. Treasuries
67
CITY OF AUBURN: 2009 CAFR NOTES TO THE FINANCIAL STATEMENTS
• State Local Government Investment Pool
With the exception of the State Local Government Investment Pool, which is not rated, all of the
investments above carried a rating of AAA by Standard & Poor's rating service at December 31,
2009.
Concentration of Credit Risk
Concentration of credit risk is the risk of loss attributed to the magnitude of an investment in a
single issuer. The City diversifies its investments by security type and institution. The investment
policy states: "With the exception of US Treasury securities and the State Investment Pool, no
more than 20% of the City's total investment portfolio will be invested in a single security type or
with a single financial institution".
Other information
Effective 2002, the City has established arrangements with Bank of New York for safekeeping of
all investments.
Below is a schedule of investments by fund type:
SCHEDULE OF INVESTMENTS BY FUND CATEGORY AND INVESTMENT TYPE
AS OF DECEMBER 31, 2009
State
Investment U.S.
Pool Securities Total
General Fund $ - $ 2.990.938 $ 2,990.938
Capital Project Funds - 1,000.625 1,000.625
Enterprise Funds - 5,046,023 5,046.023
Fiduciary Funds - 1,080,715 1,080,715
Treasurer's Residual Funds 75,933.234 - 75,933.234
Total $ 75,933.234 $ 10,118.300 $ 86.051.534
NOTE 4 - PROPERTY TAXES
Property taxes received during tax year 2009 were $12,801,791, including collection of prior year
delinquent assessments. Property taxes assessed for collection in tax year 2009 were based on a
regular tax levy of $1.48 per $1,000 on a total 2008 assessed value of $8,713,852,906.
For levy year 2009, to be received in 2010, the City's regular tax levy is $1.82 per $1,000 on a
2009 assessed valuation of $7,702,255,337, as of December 31, 2009, for a total regular levy of
$14,094,060. 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
68
CITY OF AUBURN: 2009 CAFR NOTES TO THE FINANCIAL STATEMENTS
2.50% of assessed value with a vote of the people, indebtedness is for parks, or open
space development
At December 31, 2009, the debt limits for the City were as follows:
With a Vote
For Parks or
Without
General
For Open Space
Item
a Vote
1.50%
Purposes
1.00%
Utilities Development
2.50% 2.50%
Total
Capacity
Legal Limit $
115,533,830
$ 77,022,553 $
192,556,383 $ 192,556,383
$ 577,669,150
Outstanding indebtedness
(66,411,202)
-
- -
(66,411,202)
Assets available
3,777,515
-
- -
3,777,515
Margin available $
52.900,143
$ 77,022,553 $
192,556,383 $ 192.556,383
$ 515,035.463
The County Treasurer acts as an agent to collect property taxes levied in the county for all taxing
authorities. Taxes are levied annually on January 1 on property values listed as of the prior
August 31.
The County assesses property at 100% of fair value. A revaluation of all property is required at
least once every four years and a physical inspection is required at least once every six years.
Property taxes levied by the County Assessor and collected by the County Treasurer become a
lien on the first day of the levy year and may be paid in two installments if the total amount
exceeds $10. The first half of real property taxes is due on April 30 and the balance is due
October 31. Delinquent taxes bear interest at the rate of 12% and are subject to additional
penalties if not paid as scheduled.
At year-end, property taxes are recorded as a receivable with the portion not expected to be
collected within 30 days offset by deferred revenue. In the statement of net assets, this deferred
revenue is referred to as "Unearned Revenue". During the year, property tax revenues are
recognized when cash is received.
The Washington State Constitution limits the total regular property taxes to 1 % of
assessed valuation or $10 per $1,000 of value. If the taxes of all districts exceed this
amount, each is proportionately reduced until the total is at or below the 1 % limit.
2. Washington State law in RCW 84.55.010 limits the annual growth of regular property
taxes to the lesser of 1 % or the rate of inflation. With a vote of the majority of the voters
within a taxing district, the 1% levy limitation can be "lifted" and additional taxes may be
levied.
3. The City may voluntarily levy taxes below the legal limit.
Special levies approved by the voters are not subject to the above limitations.
Property taxes are recorded as receivable and offset by a deferred revenue account when levied.
Since state law allows for the sale of property for failure to pay taxes, no estimate of uncollectible
taxes is made.
NOTE 6 - INTERFUND ACTIVITY
The next two tables summarize interfund activity during 2009. The first table details transfers
while the second lists loan activity. Transfers are legally authorized transfers of resources from a
fund receiving revenue to the fund through which resources are to be expended.
69
CITY OF AUBURN: 2009 CAFR NOTES TO THE FINANCIAL STATEMENTS
Governmental funds:
General fund
Special revenue funds:
City street fund
Local street fund
Arterial street fund
Arterial Street Preservation
Recreational trails
Cumulative reserve
Mitigation fees
Total special revenue funds
Debt service funds:
1998 library GO
LID guarantee
Total debt service funds
Capital projects funds:
Park construction
Capital improvement projects
Total capital projects funds
Proprietary funds:
Water
Sewer
Storm drainage
Cemetery
Golf course
Total proprietary funds
Internal service funds:
Information services
Equipment rental
Total internal service funds
Fiduciary funds:
Fire pension & relief fund
Permanent funds:
Cemetery endowed care
All transfers are considered routine.
$ 3,093,827 $
1,773,957
-
150,000
114,142
1,524,151
-
114,142
-
7,000
1,300,785
756,957
1,138, 601
-
2,553,528
2,552,250
-
302,500
10,000
-
10,000
302,500
-
1,170,441
1,300, 446
1,195,158
1,300,446
2,365,599
166,100
-
50,000
89,425
138,000
-
-
40,000
-
54,070
354,100
183,495
81,000
-
7,000
204,100
88,000
204,100
58,000
40,000
70
CITY OF AUBURN: 2009 CAFR NOTES TO THE FINANCIAL STATEMENTS
Loans between funds are classified as interfund receivable and payable. Interfund loans do not
affect total fund equity.
Interfund Loans Balance
Due From Due To 1/112009 New Loans
Balance
12/31/20C
Golf course fund Capital projects fund $ 96,875 $ - $ 37,500 $ 59,375
All interfund loans are considered short-term cash loans.
NOTE 6 - DUE FROM OTHER GOVERNMENTAL UNITS
As of December 31, 2009, the City had receivables due from other governmental units as follows:
71
CITY OF AUBURN: 2009 CAFR NOTES TO THE FINANCIAL STATEMENTS
General Fund
City of Seattle - CBRNE Training
1,414
King County - 4Culture - Arts Sustained Support Grant
17,000
King County - Medic One
200
King County - Olympic Leadership Grant
4,167
King County - Real Estate Excise Taxes
46,168
King County Office of Emergency Management - SHSP Equip Grant
22,259
King County Sheriff's - Registered Sex Offender Grant
6,042
Pierce County - Real Estate Excise Taxes
49,772
WA Assn of Sheriff's and Police Chiefs - CTED Gang Emphasis Grant
37,104
WA Auto Theft Prevention Authority - Auto Theft Prevention Grant
38,653
WA State Administrative Office of the Courts
15,208
WA State Military Department - EMPG Grant
14,660
WA State Traffic Safety - Seat Belt / DUI Enforcement
2,948
WA State Treasurer - Sales Taxes
962,169
Total General Fund
1,217,764
Arterial Street Fund:
King County Department of Natural Resources & Parks
1,413
WA State Transportation Improvement Board - Arterial Street Improvements
24,979
WA Dept. of Transportation - Arterial Street Improvements
400,130
Total Arterial Street Fund
426,522
Drug Forfeiture Fund:
Tacoma Narcotics Enforcement Team (TNET) Grant
28,940
Housing & Community Development Fund:
U.S. Dept. of Housing - Community Development Block Grant (CDBG)
98,495
Municipal Park Construction Fund:
WA Recreation and Conservation Office - Park Improvement Grants
1,353
Department of Ecology - Coastal Protection Grant
15,699
King County Water and Land Resources - Open Space
4,327
Total Municipal Park Construction Fund
21,379
Storm Fund:
King County - Flood Protection Services
1,019,200
Solid Waste Fund:
Department of Ecology - CPG Grant
33,062
King County - Local Hazardous Waste Management Grant
19,955
King County - Waste Reduction and Recycling Grant
34,437
Total Solid Waste Fund
87,454
Facilities Fund:
GSA Utilities
2,392
Information Services Fund:
VRFA - GIS Support Services
18,141
Equipment Rental Fund:
VRFA - Fuel Sales
7,149
Total
$ 2,927,436
Reconciliation to government-wide statement of net assets:
Total above due from other governmental units
$ 2,927,436
Amount due to fiduciary fund
-
Total due from other governmental units,
government-wide statement of net assets
$ 2,927,436
72
CITY OF AUBURN: 2009 CAFR NOTES TO THE FINANCIAL STATEMENTS
NOTE 7 - CAPITAL ASSETS AND DEPRECIATION
Capital asset activity for the year ended December 31, 2009 is as follows:
Schedule of Capital Asset Activity
Balance Decreases/ Balance
111/09 Increases Adjustments 12/31109
Governmental activities:
Capital assets, not being depreciated:
Land
$ 105,137,746 $
1,227,532
$ (76,000)
$ 106,289,278
Construction in progress
5,494,727
17,507,549
(6,520,440)
16,481,836
Total capital assets, not being depreciated
110,632,473
18,735,081
(6,596,440)
122,771,114
Capital assets, being depreciated:
Buildings
23,629,321
-
(153,000)
23,476,321
Improvements other than buildings
13,583,553
384,866
13,968,419
Machinery and equipment
16,739,921
2,371,967
(695,484)
18,416,404
Intangibles
713,231
24,684,825
-
25,398,056
Infrastructure
234,679,050
9,551,212
1571,256)
243,659,006
Total capital assets being depreciated
289,345,076
36,992,870
(1,419,740)
324,918,206
Less: accumulated depreciation for:
Buildings
(8,059,3461
(640,0361
2,003
(8,697,379)
Improvements other than buildings
(8,625,9171
034,8761
(9,060,793)
Machinery and equipment
110, 126,002 1
(1,782,6411
652,288
1:11,256,355)
Intangibles
(96,5981
(95,0221
-
(191,620)
Infrastructure
(66,284,798!
(8,723,986)
-
175,008,784)
Total accumulated depreciation
(93,192,661)
(11,676,5611
654,291
(104,214,931)
Total capital assets, being depreciated, net 196,152,415 25,316,309 (765,449) 220,703,275
Governmental activities capital assets, net $ 306,784,888 $ 44,051,390 $ (7,361,889) $ 343,474,389
Business-type activities:
Capital assets, not being depreciated:
Land
$ 14,464,997 $
-
$ -
$ 14,464,997
Construction in progress
2,934,771
12,559,659
(1,244,401)
14,250,029
Total capital assets, not being depreciated
17,399,768
12,559,659
(1,244,401)
28,715,026
Capital assets, being depreciated:
Buildings
12,944,082
-
(640,844)
12,303,238
Improvements other than buildings
195,405,439
1,579,536
-
196,984,975
Machinery and equipment
3,037,817
278,473
(176,685)
3,139,605
Total capital assets being depreciated
211,387,338
1,858,009
(817,529)
212,427,818
Less: accumulated depreciation for:
Buildings
(4,489,105)
(325.616)
640,844
(4,173,877)
Improvements other than buildings
(61,987,558)
(4,808,427)
-
166,795,985)
Machinery and equipment
(2,618,225)
(136,556)
160,518
1:2,594,263)
Total accumulated depreciation
(69,094,888)
(5,270,599)
801,362
(73,564,125)
Total capital assets, being depreciated, net 142,292,450 (3,412,590) (16,167) 138,863,693
Business-type activities capital assets, net $ 159,692,218 $ 9,147,069 $ (1,260,568) $ 167,578,719
73
CITY OF AUBURN: 2009 CAFR NOTES TO THE FINANCIAL STATEMENTS
Depreciation/amortization expense was charged to functions/programs of the City as follows:
Government activities:
General government
$ 311,972
Public safety
420,714
Transportation
8,564,492
Physical environment
35,867
Culture and recreation
810,290
Capital assets held by the City's internal service funds are charged to the various
functions based on their usage of the assets
Total depreciation/amortization expense - governmental activities
1,533,228
$ 11,676,563
Business-type activities:
Water
$ 2,104,554
Sanitary sewer
1,390,660
Storm water
1,087,555
Solid waste
20,534
Golf course
334,026
Airport
224,393
Cemetery
66,648
Commercial retail
Total depreciation expense - business-type activities
42,238
$ 5,270,608
NOTE 8 - CAPITAL LEASE OBLIGATION
The City has the following capital leases:
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.
On December 7, 2009 the City entered into a capital lease agreement for space in the Auburn
Professional Plaza Building (Annex). The non-cancelable term of the lease is 30 years, however,
the intent of the City is to exercise its lease purchase option in 2010.
SCHEDULE OF FUTURE MINIMUM LEASE PAYMENTS
2011
70,111
1,649,735
2012
70,112
1,649,735
2013
70,112
1,649,735
2014
70,112
1,670,357
2015-
2019
350,557
9,509,691
2020-
2024
140,330
10, 936,145
2025-
2029
12, 545,204
2030-
2034
12, 545, 204
2035-
2039
12, 076,661
Total
minimum lease payments
841,445
65,882,202
Less:
Amounts representing interest
(209,735)
(41,333,020)
Prese
nt value of future minimum lease payment
s $ 631,710
$ 24,549,182
74
CITY OF AUBURN: 2009 CAFR NOTES TO THE FINANCIAL STATEMENTS
As of December 31, 2009, the gross value of the Auburn Theater facility acquired under the
capital lease is $695,504. Monthly lease payments of $5,843 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 five percent.
As of December 31, 2009, the gross value of the space in the Auburn Professional Plaza Building
acquired under the capital lease is $24,549,186. Monthly lease payments of $137,478 plus
inflation adjustments every 60 months are payable through the end of the non-cancelable lease
period or until the lease purchase option is exercised. The lease negatively accrues in the first
five years because the lease is structured so that the lease payments are less in the early years
than in the final years. Interest on the lease was imputed at seven and three tenth percent.
NOTE 9 - LONG-TERM DEBT
General Obligation Bonds are direct obligations of the City for which its full faith and credit are
pledged. Debt service for voter-approved issues, of which the City has none, would be funded by
special property tax levies. Debt service for City Council authorized bonds, also called
councilmanic bonds, is funded from regular property taxes or general revenues, and is generally
paid from debt service funds but can be paid from other designated funds.
General Obligation Bonds outstanding at year-end are as follows:
• 1998 Limited Tax General Obligation bonds were issued for construction of a library to be
owned and operated by the King County Rural Library District. These 20-year bonds
mature in 2018 and are paid from the Debt Service fund.
• 2005 Limited Tax General Obligation refunding bonds were issued to partially advance
refund the 1999 Limited Tax Obligation bonds. 1999 Limited Tax General Obligation
bonds were issued for construction of hangars at the Auburn Municipal Airport. The 2005
Limited Tax General Obligation refunding bonds mature in 2019 and are paid from the
Airport fund.
• 2006 Limited Tax General Obligation bonds were issued to fund improvements at the
Auburn Golf Course including a pro shop, clubhouse and related facilities, as well as
construction of a columbarium at the Mountain View Cemetery.
• 2006 Limited Tax General Obligation (taxable) bonds were issued to construct and equip
restaurant, banquet and related facilities for a restaurant facility to be located at the
Auburn Golf Course clubhouse.
Revenue Bonds are payable from water and storm drainage utility revenues generated by those
enterprise funds.
Special Assessment Bonds are not a direct responsibility of the City, but are funded from the
collection of special assessment payments. Debt service principal and interest costs are paid
from the individual LID funds. The City is obligated for special assessment debt to the extent that
it is required to establish an LID Guarantee fund for the purpose of guaranteeing the payment of
local improvement bonds in the event there are insufficient funds in the individual LID fund.
State of Washington Public Works Trust Fund Loans are a direct responsibility of the City.
Auburn currently has seven outstanding loans with a remaining total balance of $10,014,943. Six
of the loans are being repaid from water and sewer fund revenues over a 20-year period that
begins upon each project completion. The other loan is being repaid from arterial street fund
revenues over a 4-year period that began in 2007 upon project completion.
75
CITY OF AUBURN: 2009 CAFR NOTES TO THE FINANCIAL STATEMENTS
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, 2009. The first table summarizes all debt transactions for Auburn, while the second
provides detailed information on all long-term debt. Additional schedules reflect total annual debt
service requirements to maturity and the reconciliation of debt by fund type,
CHANGES IN LONG-TERM DEBT SUMMARY
Long-tern debt payable 12/31108
$ 9,271,799 $ 13,296.481 $ 36,827 $
1.914.598 $ (13.926) $
1,428,000 $
25.933,779
Added
25,506,460 - -
- -
26,732,850
52,239,310
Retired
(48^0,259) (2,002,938) -
734,971 9,578
(175,000)
(1,921,648)
Long-term debt payable 12131/09
$ 34,290,000 $ 11,293.543 $ 36,827 $
2,649.569 $ (4,348) $
27,985,850 $
76,251,441
(1) Includes capital leases
DEBT
2010
669,000
1,492,056
(98,723)
1,819,126
1,070,654
155,066 -
2,558
1,991,409
3,632,340
3,468,805
2011
718,000
2,006,817
(107,015)
1,827,435
1,028,676
139957 -
2,558
65,816
1,705,476
3,976,767
2012
752,000
1,972,995
(116,041)
1,836,418
1,043,676
123,622 36,827
2,558
65,816
1,782,277
3,935,592
2013
1,388,650
1,928,661
(125,796)
1,846,128
1,048,676
106,686 -
-
65,816
2,377,346
3,881,474
2014
1,435,500
1,871,347
(115,714)
1,856,620
1,063,676
89,550 -
-
65,816
2,449,278
3,817,517
2015
1489,900
1,807,985
109690
1,858,005
1,078,676
69,377 -
-
65,816
2,744082
3,735,367
2016
1,325,150
1,738,025
116,716
1,850,927
1,093,676
48,678 -
-
65,816
2,601,357
3,637,630
2017
1,389,950
1,678,005
124,207
1,843,381
738676
27,455 -
-
65,816
2,318,648
3,548,841
2018
1,449,400
1,613,618
132,195
1,835,334
738,676
22,719 -
-
65,816
2,386,087
3,471,672
2019
1,211,100
1,544,816
164,430
1,826,753
738,676
17,984 -
-
65,816
2,180,022
3,389,553
2020
1,059,350
1,486,155
445,828
1,806,156
556,307
13,248 -
-
65,816
2,127,301
3,305,558
2021
1,094,150
1,434,167
477,855
1,774,168
556,307
10,336 -
-
-
2,128,312
3,218,671
2022
1,147,900
1,378,907
440,250
1,741,524
329,222
7,424 -
-
-
1,917,372
3,127,855
2023
1,192,350
1,318,371
473305
1,708,470
303,107
5,647 -
-
-
1,968,762
3,032,488
2024
1,241,800
1,253,922
536,113
1,672,934
303,107
4,131 -
-
-
2,081,020
2,930,987
2025
1,289,350
1,183,587
887474
1,621,567
195263
2,616 -
-
-
2,372,087
2,807,770
2026
931,550
1,107,237
954,106
1,554,935
195,263
1,639 -
-
-
2,080,919
2,663,811
2027
970,300
1,046,226
1,025741
1,483,299
66,316
663 -
-
-
2,062,357
2,530,188
2028
1,010,600
982,678
1,102,755
1,406,286
66,316
332 -
-
-
2,179,671
2,389,296
2029
1,052,450
916,496
1,185,551
1323,490
-
- -
-
-
2,238,001
2,239,986
2030
1,095,850
846,482
1,274,563
1,234,477
-
- -
-
-
2,370,413
2,080,960
2031
1,143,900
772,392
1,370 259
1,138,782
-
- -
-
-
2,514,159
1,911,174
2032
1,191,950
695,122
1,473,139
1,035,902
-
- -
-
-
2,665,089
1,731,023
2033
1,243,100
614,570
1,583,744
925,297
-
- -
-
-
2,826 844
1,539,867
2034
1,297,350
530,532
1,702,653
806,388
-
- -
-
-
3,000,003
1,336,920
2035
1,353,150
442,854
1,830490
678,551
-
- -
-
-
3,183,640
1,121,405
2036
1,410,500
351,432
1,967,925
541,116
-
- -
-
-
3,378,425
892,548
2037
1470,950
256,114
2,115,678
393,362
-
- -
-
-
3,586,628
649,476
2038
1,534,500
156,693
2,274,525
234,515
-
- -
-
-
3,809,025
391,209
2039
1,601,150
52,966
1,974,989
65,510
3,576,139
118476
TOTALS
$ 36,160,850
$ 34,481,226
$ 25,180,892 $
41,546,856
$ 12,214,943 $
847,129 $ 36,827 $
7,673 $
2,649,569
$ 76,243,081
$ 76,882,885
(1) $ 76,243,081 Principal debt service requirements to maturity
(4,348) Deferred charges
12,708 Present value adjustment of Auburn Theater Capital Lease on 1!112010
$ 76,251,441 Long Term Debt payable 12/3112009
76
CITY OF AUBURN: 2009 CAFR NOTES TO THE FINANCIAL STATEMENTS
General obligation bonds:
Limited G.O. Libran/
3355.00%
121112018 $
4,000000
$110,000-$290000
$ 2440000 $
$
(205,000) $
2235,000 $
210000
Total general obligation bonds
4,000,000
2,440,000
-
(205,000)
2,235,000
210,000
Capital lease:
Aubum Avenue Theater
5.00%
1213112021
695,504
$5,500-$5960
646,799
35,878
(38,259)
544,418
36,247
'nnex
7.30%
12/112039
24549,182
$137478-$209,087
24,549,182
24,549,182
1,549,735
Total capital leases (1)
25,244,686
646,799
24,585,060
(38,259)
25,193,600
1,685,982
Embloyee leae'e benefit.
Compensated absences
-
1,504,598
-
555,365
2,059,963
1,991,409
Public Works Trust Fund loans:
PWTF 2006(a)
0.50%
7/1/2010
189,750
$35,578
71,157
21,400
(35,578)
56,979
56,978
F'U'dTF 20113
0.50%
71112028
1,800000
$66,316
360000
900,000
-
1260,000
66316
Total Public Works Trust Fund loans
1,989,750
431,157
921,400
(35,578)
1,316,979
123,294
Special assessment bnr dS
L JO, # 347
6.85%
51112012 587,827
Va
ries
36,827
36,827
Deferred charges related to debt
(1,024) -
102
(922) -
Total governmental
$ 31,822,263
$ 5,058,357 $ 25,506,460 $
276,630 $
30,841,447 $ 4,010,685
Business-type debt:
General obligation bonds
GO bond 1999
5.00-5.10%
1111/2009 $ 1,655,000
$45,000
-$65,000
$ 65,000 $ - $
(65,000) $
- $ -
GO refunding bond2005
4.01}5.00%
121112019 1,375,000
$10,000
-$190,000
1,345,000 -
-
1,345,000 85,000
GO bond 2006
4.25-5.00%
121112025 3,275,000
$5,000 -
$395,000
3,275,000 -
-
3,275,000 -
GO bond 2006 twable
540.552%
121112015 1,885,000
$45,000
-$245,000
1,500,000
(180,000)
1320,000 19npni]
Total GO bonds
8,190,000
6,185,000 -
(245,000)
5,940,000 275,000
Pedenue bonds.
utilit$rsy%s redenue2) 5.01 5.1016 11x112009 8,345,000 $670,000-$1,030,000 1,030000 - (1,030000) -
Utlft;.,s ref lrair3l nnda,11u5 (2) F-4 75, 1U112016 2,765,000 $45,000-$355,000 2465000 (265000) 2200,000 275,00[
Total revenue bonds 11,110,000 3,495,000 - (1,295,000) 2,200,000 275,000
Emnlpeee le, de benefit:
Public Works Trust Fund loans:
PWTF 1999
1.00%
71112019
3,465,000
$182,368
2,006,053
- (182,368)
1,823,685
182,368
PWTF 2001
0.50%
71112021
4,290,405
$227,086
2,952,112
- (227,086)
2 .725,026
227,086
PIPITF 2002
1.00%
71112022
641,250
$26,114
365,602
- (26,115)
339,487
26,114
PWTF 2004
0.50%
71112024
2,049036
$107,844
1,725504
- (107,844)
1617,660
107844
PWTF 2000Qb)
0.50%
71112026
2450000
$128947
2,321053
(128947)
2,192,106
128,947
Total Public Works Trust Fund loans
12,895,691
9,370,324
- (672,360)
8,697,964
672,359
Total all funds $ 64,017,954 $ 24,505,779 $ 25,506,460 $ (1,746,648) $ 48,265,591 $ 5,676,190
(1) The $12,708 dirrerence between the debt service requirement to maburitq and the 12!312009 balance is due to present value adjustment of Theater lease on 1'172010.
(2) Subject to federal arbitrage rules.
Due to Other Governments
• Valley Communication Center Public Development Authority issued General Obligation bonds
in 2000 for a new dispatch facility. The City is contracted to pay 20% of the debt service of
these 15-year bonds that mature in 2015. This debt is paid from the General fund.
• SCORE Public Development Authority issued General Obligation bonds in 2009 to acquire,
construct, improve, and equip a consolidated correctional facility to be located in Des Moines,
Washington. The city is contracted to pay 31% of the debt service of these 30 year bonds
that mature in 2039. This debt is to be paid from the General fund.
77
General Ahl i,tion bonds.:
0e_ %rc ~~u dtinn Puhllp Eev Auth 4. 0575% 1-.1!2015 -,551,600 .$96,600-$53,000 1,428,000 - (175,000) 1253,000 184,0170
SC,-,RE Public Ce.elopnient. itl-~ri11-11106.62%, VI00039 6 7-12 $.93,650-$1,601,150 - 26 732 - 2673 '50 -
Total general obligation bonds due other governments 29284450 1,428,000 26732850 (175,000) 27,985,850 184,000
CITY OF AUBURN: 2009 CAFR NOTES TO THE FINANCIAL STATEMENTS
LONG-TERM DEBT RECONCILIATION
Revenue bonds
Long-term bonds payable:
General obligation bonds
Capital lease
Revenue bonds
Special assessments with
government commitment
Public Works Trust Fund loans
Due to Other Governments
Employee leave benefits
Deferred charges
Total long-term debt
648,190 $ - $ 648,190
5,940,000 2,235,000 8,175,000
- 25,193,600 25,193,600
1,551,810 - 1,551,810
- 36,827 36,827
8,697,964 1,316,979 10,014,943
- 27,985,850 27,985,850
589,606 2,059,963 2,649.569
(3,427) 922) (4,348)
$ 17,424,144 $ 58,827,297 $ 76,251,441
11111111111116 Revenue Bond Debt Service Coverage
The required debt service coverage for the 1999 utility revenue bonds and the 2005 utility
revenue refunding bonds is 1.25. Debt service coverage for 2009 was 1.78.
The restricted rate stabilization fund for the utility revenue bonds was established to minimize the
effect on rates of revenue fluctuations between years. By transferring cash into this stabilization
fund, adjusted net revenue available for debt service, as defined, would be decreased by the
amount of the transfer. Conversely, transfers out of the account would increase adjusted net
revenue available for debt service.
NOTE 10 - PENSION PLANS
Substantially all City full-time and qualifying part-time employees participate in one of the
following statewide retirement systems administered by the Washington State Department of
Retirement Systems, under cost-sharing multiple-employer public employee defined benefit and
defined contribution retirement plans. The Department of Retirement Systems (DRS), a
department within the primary government of the State of Washington, issues a publicly available
comprehensive annual financial report (CAFR) that includes financial statements and required
supplementary information for each plan. The DRS CAFR may be obtained by writing to:
Department of Retirement Systems, Communications Unit, P.O. Box 48380, Olympia, WA
98504-8380. The following disclosures are made pursuant to GASB Statement 27, Accounting
for Pensions by State and Local Government Employers.
Public Employees' Retirement System (PERS) Plans 1, 2, and 3
Plan DescriDtion
PERS is a cost-sharing multiple-employer retirement system comprised of three separate plans
for membership purposes: Plans 1 and 2 are defined benefit plans and Plan 3 is a defined benefit
plan with a defined contribution component.
Membership in the system includes: elected officials; state employees; employees of the
Supreme, Appeals, and Superior courts (other than judges currently in a judicial retirement
system); employees of legislative committees; community and technical colleges, college and
78
Liabilities payable from restricted assets:
CITY OF AUBURN: 2009 CAFR NOTES TO THE FINANCIAL STATEMENTS
university employees not participating in national higher education retirement programs; judges of
district and municipal courts; and employees of local governments.
PERS participants who joined the system by September 30, 1977 are Plan 1 members. Those
who joined on or after October 1, 1977 and by either, February 28, 2002 for state and higher
education employees, or August 31, 2002 for local government employees, are Plan 2 members
unless they exercise an option to transfer their membership to Plan 3. PERS participants joining
the system on or after March 1, 2002 for state and higher education employees, or September 1,
2002 for local government employees have the irrevocable option of choosing membership in
either PERS Plan 2 or PERS Plan 3. The option must be exercised within 90 days of
employment. An employee is reported in Plan 2 until a choice is made. Employees who fail to
choose within 90 days default to PERS Plan 3. Notwithstanding, PERS Plan 2 and Plan 3
members may opt out of plan membership if terminally ill, with less than five years to live.
PERS Plan 1 and Plan 2 defined benefit retirement benefits are financed from a combination of
investment earnings and employer and employee contributions. PIERS retirement benefit
provisions are established in state statute and may be amended only by the State Legislature.
PERS Plan 1 members are vested after the completion of five years of eligible service. Plan 1
members are eligible for retirement at any age after 30 years of service, or at the age of 60 with
five years of service, or at the age of 55 with 25 years of service. The annual benefit is two
percent of the average final compensation (AFC) per year of service, capped at 60 percent. (The
AFC is based on the greatest compensation during any 24 eligible consecutive months). This
annual benefit is subject to a minimum for PERS Plan 1 retirees who have 25 years of service
and have been retired 20 years, or who have 20 years of service and have been retired 25 years.
Plan 1 members who retire from inactive status prior to the age of 65 may receive actuarially
reduced benefits. Plan 1 members who retire from inactive status prior to the age of 65 may
receive actuarially reduced benefits. If a survivor option is chosen, the benefit is further reduced.
A cost-of living allowance (COLA) is granted at age 66 based upon years of service times the
COLA amount, increased by three percent annually. Plan 1 members may also elect to receive
an additional COLA amount that provides an automatic annual adjustment based on the
Consumer Price Index. 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 may retire at the age of 65 with five years of service with an allowance of two percent of
the AFC per year of service. (The AFC is based on the greatest compensation during any eligible
consecutive 60-month period. Plan 2 members who retire prior to the age of 65 receive reduced
benefits. If retirement is at age 55 or older with at least 30 years of service, a three percent per
year reduction applies; otherwise an actuarial reduction will apply. The benefit is also actuarially
reduced 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 three
percent annually.
PIERS Plan 3 has a dual benefit structure. Employer contributions finance a defined benefit
component, and member contributions finance a defined contribution component. The defined
benefit portion provides a benefit calculated at one percent of the average final compensation per
year of service. The average final compensation is based on the greatest compensation during
any eligible consecutive 60-month period. Effective June 7, 2006, Plan 3 members are vested in
the defined benefit portion of their plan after ten years of service; or after five years of service, if
twelve months of that service are earned after age 44; or after five service credit years earned in
PERS Plan 2 prior to June 1, 2003. Plan 3 members are immediately vested in the defined
contribution portion of their plan. Vested Plan 3 members are eligible to retire with full benefits at
age 65, or at age 55 with 10 years of service. Plan 3 members who retire prior to the age of 65
receive reduced benefits. If retirement is at age 55 or older with at least 30 years of service, a
three percent per year reduction applies; otherwise an actuarial reduction will apply. The benefit
79
CITY OF AUBURN: 2009 CAFR NOTES TO THE FINANCIAL STATEMENTS
is also actuarially reduced to reflect the choice of a survivor option. There is no cap on years of
service credit, and Plan 3 provides the same cost-of-living allowance as Plan 2.
The defined contribution portion can be distributed in accordance with an option selected by the
member, either as a lump sum or pursuant to other options authorized by the Employee
Retirement Benefits Board.
Judicial Benefit Multiplier
Beginning January 1, 2007 through December 31, 2007, judicial members of PERS were given
the choice to participate in the Judicial Benefit Multiplier Program (JBM). Justices and judges in
PERS Plan 1 and 2 were able to make a one-time irrevocable election to pay increased
contributions that would fund a retirement benefit with a 3.5 percent multiplier. The benefit would
be capped at 75 percent of average financial compensation. Judges in PERS Plan 3 could elect
a 1.6 percent of pay per year of service benefit, capped at 37.5 percent of average compensation.
Members who choose to participate in JBM would: accrue service credit at the higher multiplier
beginning with the date of their election, be subject to the benefit cap of 75% of average financial
compensation, pay higher contributions, stop contributing to the Judicial Retirement Account
(JRA), and be given the option to increase the multiplier on past judicial service. Members who
did not choose to participate would: continue to accrue service credit at the regular multiplier;
continue to participate in JRA, if applicable; never be a participant in the JBM Program; and
continue to pay contributions at the regular PERS rate.
Newly elected or appointed justices and judges who chose to become PERS members on or after
January 1, 2007, or who had not previously opted into PERS membership, were required to
participate in the JBM Program. Members required into the JBM program would: return to prior
PERS Plan if membership had previously been established; be mandated into Plan 2 and not
have a Plan 3 transfer choice, if a new PERS member; accrue the higher multiplier for all judicial
service; not contribute to JRA; and not have the option to increase the multiplier for past judicial
service.
There are 1,192 participating employers in PERS. Membership in PERS consisted of the
following as of the latest actuarial valuation date for the plans of June 30, 2008:
Retirees and Beneficiaries Receiving Benefits 73,122
Terminated Plan Members Entitled to but not yet Receiving Benefits 27,267
Active Plan Members Vested 105,212
Active Plan Members Non-vested 56,456
Total 262,057
Fundinq Policy
Each biennium, the state Pension Funding Council adopts Plan 1 employer contribution rates,
Plan 2 employer and employee contribution rates, and Plan 3 employer contribution rates.
Employee contribution rates for Plan 1 are established by statute at 6 percent for state agencies
and local government unit employees, and at 7.5 percent for state government elected officials.
The employer and employee contribution rates for Plan 2 and the employer contribution rate for
Plan 3 are developed by the Office of the State Actuary to fully fund Plan 2 and the defined
benefit portion of Plan 3. All employers are required to contribute at the level established by the
Legislature. Under PERS Plan 3, employer contributions finance the defined benefit portion of the
plan, and member contributions finance the defined contribution portion. The Employee
Retirement Benefits Board sets Plan 3 employee contribution rates. Six rate options are available
ranging from 5 to 15 percent; two of the options are graduated rates dependent on the
employee's age. As a result of the implementation of the Judicial Benefit Multiplier Program in
January 2007, a second tier of employer and employee rates was developed to fund, along with
investment earnings, the increased retirement benefits of those justices and judges that
80
CITY OF AUBURN: 2009 CAFR NOTES TO THE FINANCIAL STATEMENTS
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, 2009, were as follows:
Members not participating in JBM:
Employer* 5.31% * 5.31%- 5.31%***
Employee 6.00%**** 3.90%- 1-1.
The employer rates include the employer administrative expense fee currently set at 0.16%.
The employer rate for state elected officials is 7.89% for Plan 1 and 5.31% for Plan 2 and
Plan 3.
Plan 3 defined benefit portion only.
The employee rate for state elected officials is 7.50% for Plan 1 and 3.90% for Plan 2.
* Variable from 5.0% minimum to 15.0% maximum based on rate selected by the PERS 3
member.
Members participating in JBM:
PERS Plan 1 PERS Plan 2 PERS Plan 3
Employer' 5.31% 5.31% 5.31
Employee 12.26% 9.75% 7.50%*-
* The employer rates include the employer administrative expense fee currently set at 0.16%.
Plan 3 defined benefit portion only.
Minimum rate.
Both City and the employees made the required contributions. The City's required contributions
for the years ended December 31 were as follows:
2009 $49,565 $1,167,042 $263,837
2008 $54,719 $1,173,956 $238,108
2007 $49,744 $765,172 $144,898
The employer contribution rate for the City was 6.13% in 2007, 8.31% in 2008 and 5.31% in
2009.
Law Enforcement Officers' and Fire Fighters' Retirement System (LEOFF) Plans 1 and 2
Plan Description
LEOFF is a cost-sharing multiple-employer retirement system comprised of two separate defined
benefit plans. LEOFF participants who joined the system by September 30, 1977 are Plan 1
81
CITY OF AUBURN: 2009 CAFR NOTES TO THE FINANCIAL STATEMENTS
members. Those who joined on or after October 1, 1977 are Plan 2 members. Membership in the
system includes all full-time, fully compensated, local law enforcement officers and firefighters
and, as of July 24, 2005, those emergency medical technicians who were given the option and
chose LEOFF Plan 2 membership. LEOFF membership is comprised primarily of non-state
employees, with Department of Fish and Wildlife enforcement officers, who were first included
prospectively effective July 27, 2003, being an exception.
Effective July 1, 2003, the LEOFF Plan 2 Retirement Board was established by Initiative 790 to
provide governance of LEOFF Plan 2. The Board's duties include adopting contribution rates and
recommending policy changes to the Legislature for the LEOFF Plan 2 retirement plan.
LEOFF defined benefit retirement benefits are financed from a combination of investment
earnings, employer and employee contributions, and a special funding situation in which the state
pays through state legislative appropriations. LEOFF retirement benefit provisions are
established in state statute and may be amended by the State Legislature.
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:
Term of Service Percent of Final Average Salary
20 or more years 2.0%
10 but less than 20 years 1.5%
5 but less than 10 years
1.0%
The FAS is the basic monthly salary received at the time of retirement, provided a member has
held the same position or rank for 12 months preceding the date of retirement. Otherwise, it is
the average of the highest consecutive 24 months' salary within the last ten years of service. A
Cost-of-living allowance is granted (based on the Consumer Price Index).
LEOFF Plan 2 members are vested after the completion of five years of eligible service. Plan 2
members may retire at the age of 50 with 20 years of service, or at the age of 53 with five years
of service, with an allowance of two percent of the FAS per year of service. The FAS is based on
the highest consecutive 60 months. Plan 2 members who retire prior to the age of 53 receive
reduced benefits. Benefits are actuarially reduced for each year that the benefit commences prior
to age 53 and to reflect the choice of a survivor option. If the member has at least 20 years of
service and is age 50, the reduction is three percent for each year prior to age 53. There is no
cap on years of service credit; and a cost-of-living allowance is granted (based on the Consumer
Price Index), capped at three percent annually.
There are 375 participating employers in LEOFF. Membership in LEOFF consisted of the
following as of the latest actuarial valuation date for the plans of June 30, 2008:
Retirees and Beneficiaries Receiving Benefits
9,268
Terminated Plan Members Entitled to but not yet Receiving Benefits
650
Active Plan Members Vested
13,120
Active Plan Members Non-vested
3,927
Total
26,965
Funding Policy
Starting on July 1, 2000, Plan 1 employers and employees contribute zero percent as long as the
plan remains fully funded. Employer and employee contribution rates are developed by the Office
of the State Actuary to fully fund the plan. LEOFF Plan 2 employers and employees are required
to pay at the level adopted by the LEOFF Plan 2 Retirement Board. All employers are required to
82
CITY OF AUBURN: 2009 CAFR NOTES TO THE FINANCIAL STATEMENTS
contribute at the level required by state law. The Legislature, by means of a special funding
arrangement, appropriated money from the state General Fund to supplement the current service
liability and fund the prior service costs of LEOFF Plan 2 in accordance with the requirements of
the Pension Funding Council and the LEOFF Plan 2 Retirement Board. However, this special
funding situation is not mandated by the state constitution and this funding requirement could be
returned to the employers by a change of statute.
The required contribution rates expressed as a percentage of current-year covered payroll, as of
December 31, 2009, were as follows:
LEOFF Plan 1 LEOFF Plan 2
Employer" 0.16% 5.24%**
Employee 0.00% 8.46%
* The employer rates include the employer administrative expense fee currently set at 0.16%.
**The employer rate for ports and universities is 8.99%.
Both the City of Auburn and the employees made the required contributions. The City's required
contributions for the years ended December 31 were:
LEOFF Plan 1 LEOFF Plan 2
2009 $189 $470,102
2008 $221 $459,489
2007 $216 $382,356
Public Safety Employees' Retirement System (PSERS) Plan 2
Plan Descriation
PSERS is a cost-sharing multiple-employer retirement system comprised of a single defined
benefit plan, PSERS Plan 2. PSERS was created by the 2004 Legislature and became effective
July 1, 2006.
PSERS Plan 2 membership includes full-time employees of a covered employer on or before July
1, 2006, who met at least one of the PSERS eligibility criteria, and elected membership during the
election period of July 1, 2006 to September 30, 2006; and those full-time employees, hired on or
after July 1, 2006 by a covered employer, that meet at least one of the PSERS eligibility criteria.
A covered employer is one that participates in PSERS. Covered employers include: State of
Washington agencies: Department of Corrections, Department of Natural Resources, Parks and
Recreation Commission, Gambling Commission, Washington State Patrol, and Liquor Control
Board; Washington state counties; and Washington state cities except for Seattle, Tacoma and
Spokane.
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
83
CITY OF AUBURN: 2009 CAFR NOTES TO THE FINANCIAL STATEMENTS
• 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 defined benefit retirement benefits are financed from a combination of investment
earnings and employer and employee contributions. PSERS retirement benefit provisions are
established in state statute and may be amended only by the State Legislature.
Plan 2 members are vested after the completion of five years of eligible service. PSERS Plan 2
members may retire at the age of 65 with five years of service, or at the age of 60 with at least 10
years of PSERS service credit, with an allowance of two percent of the average final
compensation (AFC) per year of service. The AFC is the monthly average of the member's 60
consecutive highest-paid service credit months, excluding any severance pay such as lump-sum
payments for deferred sick leave, vacation or annual leave. Plan 2 members who retire prior to
the age of 60 receive reduced benefits. If retirement is at age 53 or older with at least 20 years of
service, a three percent per year reduction for each year between the age at retirement and age
60 applies. There is no cap on years of service credit; and a cost-of-living allowance is granted
(based on the Consumer Price Index), capped at three percent annually.
There are 73 participating employers in PSERS. Membership in PSERS consisted of the
following as of the latest actuarial valuation date for the plan of June 30, 2008:
Retirees and Beneficiaries Receiving Benefits 1
Terminated Plan Members Entitled to but not yet Receiving Benefits -
Active Plan Members Vested -
Active Plan Members Non-vested 3.981
Total 3,982
Funding Policy
Each biennium, the state Pension Funding Council adopts PSERS Plan 2 employer and
employee contribution rates. The employer and employee contribution rates for Plan 2 are
developed by the Office of the State Actuary to fully fund Plan 2. All employers are required to
contribute at the level established by the Legislature. The methods used to determine the
contribution requirements are established under state statute in accordance with Chapters 41.37
and 41.45 RCW.
The required contribution rates expressed as a percentage of current-year covered payroll, as of
December 31. 2009, were as follows:
Employers 7.85%
Employee 6.55%
"The employer rate includes and employer administrative expense fee of 0.16%.
Both the City and the employees made the required contributions. The City's required
contributions for the years ended December 31 were as follows:
84
CITY OF AUBURN: 2009 CAFR NOTES TO THE FINANCIAL STATEMENTS
PSERS
Plan 2
2009 $ 58,643
2008 $ 57,147
2007 $ 48,549
City of Auburn Fire Relief and Pension Plan
The City is the administrator of the Firemen's Pension Plan (Plan), which is a closed, single-
employer defined benefit pension plan that was established in conformance with RCW Chapters
41.16 and 41.18. This plan provided retirement and disability benefits, annual cost-of-living
adjustments, and death benefits to plan members and beneficiaries. Membership is limited to
firefighters employed prior to March 1, 1970 when the LEOFF retirement system was established.
The City's obligation under the Firemen's Pension Plan consists of paying all benefits, including
payments to beneficiaries and healthcare, for firefighters who retired prior to March 1, 1970, and
excess pension and healthcare benefits of LEOFF for covered firefighters who retired after March
1, 1970. Benefits and refunds of the defined benefit pension plan are recognized when due and
payable in accordance with the Plan. The Plan does not issue a separate financial report.
Under state law, the Firemen's Pension Plan is provided an allocation of 25% of all monies
received by the state from taxes on fire insurance premiums, interest earnings, member
contributions made prior to the inception of LEOFF, and City contributions required to meet
projected future pension obligations. The actuary determined as of January 1, 2009 that no
future City contributions would be required beyond future revenues from state fire insurance taxes
and interest earnings. In 2009 $58,000 was received from the state from taxes on fire insurance
premiums. On-behalf payments of fringe benefits and salaries for the City's employees were
recognized as revenues and expenditures/expenses during the period. Administrative costs, such
as City staff time and actuarial valuation costs are funded from interest earnings or City
contributions.
Membership of the Firemen's Pension Plan consisted of 14 eligible, of which 12 are receiving
benefits.
GASB STATEMENTS No. 25 and No. 27 SCHEDULE OF FUNDING PROGRESS
irounded to thousands)
Unfunded
Actuarial
Actuarial
UAAL as a
Actuarial
Accrued
Accrued
Percentage
Actuarial Value
Liabilities-
Liabilities Funded
Covered of Covered
Valuation Date of Assets
Entry Age
(UAAL) Ratio
Payroll Payroll
January 1. 1999
$2,096
$2,157
$60
97.17%
$119
51%
January 1, 2001
$3,632
$2,332
($1,3001
155.
75%
$58
-2241%
January 1, 2003
$3,514
$2,428
($1,0861
144.
73%
$61
-1780%
January 1, 2005
$3,160
$2,172
1$9881
145.
00%
$64
-1544%
January 1, 2007
$2,868
$2,802
{$661
102.
00%
$0
N/A
January 1, 2009
$2,941
$1,878
($1,0631
157.
00%
$0
N/A
This plan primarily covers inactive par
ticipants.
There are no
curren
t member contribu
tions.
Prior to adoption of GASB Statement No. 25 in 1997, the Annual Required Contribution (ARC)
was not determined pursuant to the parameters required by the statement. Therefore, no liability
prior to 1997 has been shown.
85
CITY OF AUBURN: 2009 CAFR NOTES TO THE FINANCIAL STATEMENTS
GASB STATEMENT No. 25 GASB STATEMENT No. 27
SCHEDULE OF EMPLOYER CONTRIBUTIONS THREE YEAR TREND INFORMATION
Fiscal
Actual
Annual Required
Percentage
Annual
Percentage
Net
Year
Employer
Contribution
of ARC
Pension Cost
of APC
Pension
Ending
Contributions
(ARC)
Contributed
(APC)
Contributed
Obligation
December 31,
1999
$52,738
$5,381
980%
December 31,
2000
$31,721
$5,381
590%
$5,520
574.66%
{$48,8081
December 31,
2001
$37,281
$0
NIA
$341
10932.84%
{$85,7481
December 31,
2002
$40,869
$0
NIA
$684
5975.00%
($125,933)
December 31,
2003
$45,664
$0
N/A
$1.137
4016.18%
($170,460)
December 31,
2004
($137,783)
($91,881)
N/A
($90,143)
N/A
($122,820)
December 31,
2005
($144,746)
($78,690)
N/A
($76,827)
N/A
($54,901)
December 31,
2006
($149,327)
($78,690)
NIA
($77,774)
NIA
$16,652
December 31,
2007
$17,920
($5,048)
N/A
1:$5,420)
NIA
($48,953)
December 31,
2008
$12,167
($5,048)
N/A
($4,885)
NIA
($23,740)
December 31,
2009
$37,232
($78,233)
N/A
($77,503)
N/A
($138,475)
GASB STATEMENT No. 27
Annual Development of Pension Cost
Fiscal
Year
Ending
ARC at
End of
Year (1)
Interest on
NPO (2)
ARC
Adjustment
Amort.
Factor
Annual
Pension Cost
(APC)
Total
Employer
Contributions
Change in
NPO
NPO
Balance
12131/1999
$5,381
$1,742
$1,874
13.28%
$5,249
$52,738
($47,489)
($22,667)
12/3112000
$5,381
($1,582)
($1,721)
13.14%
$5,520
$31,721
($26,201)
($48,808)
1213112001
$0
($3,417)
($3,758)
12.99%
$341
$37,281
1$36,940)
($85,7481
12131/2002
$0
($6,002)
($6,686)
12.83%
$684
$40,869
($40,185)
($125,9331
12/31/2003
$0
($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%
490,143)
($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
($78,6901
($3,294)
($4,210)
13.04%
477,774)
($149,327)
$71,553
$16,652
12/31/2007
($5,0481
$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
($78,2331
($950)
($1,680)
14.13%
($77,5031
$37,232
($114,735)
($138,4751
(1) A change in consulting actuaries resulted in a recommended change in the actuarial methods and assumptions.
(2) 8.00% interest rate was used for years prior to January 1, 1999: 7.00% thereafter.
(3) The Net Pension Obligation (NPO) balance is reflected as part of Deferred Charges on the Government-wide
Statement of Net Assets
Based on 30-year level-dollar closed amortization as of January 1, 1999.
The information presented in the preceding required schedules was determined as part of the
actuarial valuations at the date indicated.
86
CITY OF AUBURN: 2009 CAFR NOTES TO THE FINANCIAL STATEMENTS
Valuation date January 1, 2009
Actuarial cost method Entry age normal
Amortization method 30-year, closed as of January 1, 1999
Remaining amortization period 20 years
Asset valuation method Fair market value
Actuarial Assumptions
Projected salary increases 3.5%
Cost-of living adjustments 2.5%
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 employement 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.
Annual OPEB Cost and Net OPEB Obligation
The City's annual other post employment benefit (OPEB) cost is calculated based upon the
annual required contribution (ARC), an amount actuarially determined in accordance with the
parameters of GASB Statement 45. The ARC represents a level of funding that, if paid on an
ongoing basis, is projected to cover the normal cost each year and amortize any unfunded
actuarial liabilities over a period of 21 years as of January 1, 2008. The table below shows the
components of the City's annual OPEB cost for the year, the amount actually contributed to the
plan and changes in the City's net OPEB for LEOFF.
87
CITY OF AUBURN: 2009 CAFR NOTES TO THE FINANCIAL STATEMENTS
Fiscal Year Ending
12131/2009
Annual required contribution (ARC)
1.
Annual Normal Costs at beginning of year
$
90,257
2.
Amortization of UAAL at beginning of year
1,540,432
3.
Interest to end of year
81,534
4.
ARC at end of year
$
1,712,223
5.
Interest on Net OPEB Obligation
39,660
6.
Adjustment to ARC
60,618
7.
Annual OPEB Cost
$
1,691,265
8.
Employer Contributions
1,037,683
9.
Change in Net OPEB Obligation
653,582
10.
Net OPEB Obligation at beginning of year
793,204
11.
Net OPEB Obligation at end of year
$
1,446,786
The City's annual OPEB cost, the percentage of OPEB costs contributed to the plan, and the net
OPEB obligation for 2009 were as follows:
Annual
t
Percentage of
t
Net OPEB
t
Fiscal Year Ending
OPEB Cos
Annual OPEB Cos
Obliga
ion
December 31, 2009
$ 1,691,265
61%
$ 1,446,786
Funded Status and Fundinq Progress
As of January 1, 2008, the most recent actuarial valuation date, the plan was 0% funded. The
accrued liability for benefits was $20.7 million, and the actuarial value of assets was $0, resulting
in a UAAL of $20.7 million.
Actuarial valuations involve estimates of the value of reported amounts and assumptions about
the probability of occurrence of events far into the future. Examples include assumptions about
future employment, mortality, and the healthcare cost trend. Amounts determined regarding the
funded status of the plan and the annual required contributions of the employer are subject to
continual revision as actual results are compared with past expectations and new estimates are
made about the future.
Actuarial Methods and Assumptions
Projections of benefits for financial reporting purposes are based on the substantive plan (the
plan as understood by the employer and the plan members) and include the types of benefits
provided at the time of each valuation. The actuarial methods and assumptions used include
techniques that are designed to reduce the effects of short-term volatility in actuarial accrued
liabilities, consistent with the long-term perspective of the calculations.
88
CITY OF AUBURN: 2009 CAFR NOTES TO THE FINANCIAL STATEMENTS
In the January 1, 2008 actuarial valuation, the entry age normal actuarial cost method was used.
The actuarial assumptions used included a 5.0% discount rate, which is based upon the long-
term investment yield on the investments that are expected to be used to finance the payment of
benefits. Other significant assumptions are a medical inflation rate of 9.0% and long term care of
5.0%.
The UAAL is being amortized on a closed basis at the assumed discount rate. The remaining
amortization period at January 1, 2008 was 21 years.
NOTE 12 - ASSOCIATION OF WASHINGTON CITIES EMPLOYEE BENEFIT TRUST ("Trust")
Trust Description
The City is a Participating Employer in the Association of Washington Cities Employee Benefit
Trust ("Trust"), a cost-sharing multiple-employer welfare benefit plan administered by the
Association of Washington Cities. The Trust provides medical benefits to certain eligible retired
employees of Participating Employers and their eligible family members. Under Article VII of the
Trust document, the Trustees have the authority and power to amend the amount and the nature
of the medical and other benefits provided by the Trust. The Trust issues a publicly available
financial report that includes financial statements and requires supplementary information for
Trust. That report, along with a copy of the Trust document, may be obtained by writing to Trust
at 1076 Franklin Street SE, Olympia, WA 98501-1346 or by calling 1-800-562-8981.
Fundina Policv
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 $697.60 per month for non-Medicare enrolled retiree-only coverage, $1,395.20 for non-
Medicare enrolled retiree and spouse coverage, $1,069.10 for Medicare enrolled retiree and non-
Medicare enrolled spouse (or non-Medicare enrolled retiree and Medicare-enrolled spouse) and
$743.00 for Medicare-enrolled retiree and spouse coverage.
Participating Employers are contractually required to contribute at a rate assessed each year by
Trust, currently 14.8 percent of annual covered payroll. The City's contributions to the Trust for
the year ended December 31, 2009, was $4.5 million, which equaled the required contributions of
that year.
NOTE 13 -CONSTRUCTION COMMITMENTS
At December 31, 2009 the City had the following contractual obligations on construction projects:
SCHEDULE OF OUTSTANDING CONSTRUCTION OBLIGATIONS
AS OF DECEMBER 31. 2009
Amount Outstanding
Traffic projects
$ 166,354
Street projects
1,588,476
Utilities projects
2,786,056
Other projects
Total commitments
268,323
$ 4,809,209
89
CITY OF AUBURN: 2009 CAFR NOTES TO THE FINANCIAL STATEMENTS
NOTE 14 - CEMETERY ENDOWED CARE FUND
The City maintains one permanent fund known as the cemetery endowed care fund. Paid into
this fund are 15% of all proceeds received from the sale of each grave, niche or crypt. This fund
is irreducible in principal and no part of the income of this fund shall ever be used for purposes
other than those specified upon the creation of the fund.
RCW 68.44.020 restricts the use of endowment net appreciation to endowment care "stipulated in
the instrument by which the fund was established". For the City, the instrument that established
the fund is Auburn City Code section 3.04.080, and section 3.040.120 governs the use of the
fund.
ACC 3.04.120 restricts net interest or income from investments to the care of the lots and in the
improvement or embellishment of the cemetery or the erection or preservation of any buildings or
structures, fences or walks, or for the repair, preservation, erection or renewal of any tomb,
monument, grave, stone, fence, railing or other erection in or around the cemetery. The funds
may also be used for planting and cultivating trees, shrubs, flowers or plants in or around the
cemetery. All expenditures of income from the fund must first be authorized by the City Council.
For 2009, of the $25,327 net appreciation on investments, all was available for expenditures.
Amounts that are available for expenditure are reflected as unrestricted net assets.
NOTE 15 -JOINT VENTURES / RELATED PARTY
Vallev Communications Center
The "Valley Communications Center" was established August 20, 1976, when an Interlocal
Agreement was entered into by four participating municipal corporations: Renton, Kent, Auburn
and Tukwila. The provisions and terms of the "Interlocal Cooperation Act", pursuant to RCW
39.34, sanction the agreement. The initial duration of the agreement was five years and
thereafter is automatically extended for consecutive two-year periods, unless terminated by one
or more of the participating cities. Any such termination must be in writing and served upon the
other cities on or before July 1 in any one year and such termination shall then become effective
on the last day of such year.
On August 4, 1999 the Administration Board of Valley Communications Center voted to include
the City of Federal Way as a full participating member city as of January 1, 2000. The five
participating municipal corporations that include the cities of Renton, Kent, Auburn, Tukwila, and
Federal Way on April 17, 2000 entered into a new interlocal Agreement, pursuant to RCW 39.34,
et seq. This agreement reaffirmed Valley Communications Center as a governmental
administration agency pursuant to RCW 39.34.030 (3) (b).
The purpose of the joint operation, hereafter referred to as Valley Com, is to provide improved
consolidated emergency communications (dispatch) services for police, fire and medical aid to
the five participating cities and to the several subscribing agencies, which include King County
Fire Districts #2, #20, #40, #43, #44, #47, Black Diamond Fire Department, Vashon Island Fire
Department, City of Pacific Police and Fire Departments, City of Algona Police Department, City
of Black Diamond Police Department, City of Des Moines Police Department, SeaTac Fire
Department, North Highline Fire Department, and King County EMS Units. In 1988, King County
Fire District #1 was annexed to the City of Tukwila. A separate agreement between Valley Com
and the subscribing agencies has been executed, which set forth condition of services and rates
charged.
90
CITY OF AUBURN: 2009 CAFR NOTES TO THE FINANCIAL STATEMENTS
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 2009 cost distribution for the five participating cities is as follows:
Renton
79,997
21.38%
Kent
102,449
27.38%
Auburn
69,752
18.64%
Tukwila
36,382
9.72%
Federal Way
85,633
22.88%
Total
374,213
100.00%
Distribution of current year net income is based on these budgeted percentages
Valley Com is served by an Administration Board composed of the Mayors or designated
representatives from the five participating cities of Renton, Kent, Auburn, Tukwila and Federal
Way. The Administration Board is responsible for the following functions: 1) Budget review and
recommendation to the legislative bodies of the participating cities, and budget adoption after
each legislative body has approved the required financial participation for the ensuing year; 2)
Approval of appointment and/or discharge of the Director; 3) Approval of personnel policy and
final decisions on all major policy changes; 4) Review and approval of all contracts.
In addition, an Operations Board provides direction and consists of two members of each
participating City's public safety departments, including the heads of such departments or their
designees. The Operations Board performs the following functions: 1) Oversees the operation of
Valley Com, advises and makes recommendations to the Administration Board; 2) Makes
recommendations on Director selection; 3) Presents proposed policies and budget to the
Administration Board; 4) Approves disbursement of funds by the Director.
The Director presents a proposed budget to the Operations Board on or before August 15 of each
year. Said budget is then presented to the Administration Board by September 1 of each year.
The Administration Board can make changes to the proposed Valley Com budget as it finds
necessary, but final approval falls to the legislative body of each participating city in accordance
with the provisions of the Interlocal Agreement.
In August 1993, Valley Com entered into an Interlocal Cooperation Agreement, pursuant to
Chapter 39.34 RCW, with the sub-regions of King County, Seattle and Eastside Public Safety
Communications Agency (EPSCA). This agreement governs the development, acquisition and
installation of the 800 MHz emergency radio communications system (system) funded by the $57
million King County levy.
This agreement provides that upon voluntary termination of any sub-region participation in the
system, it surrenders its radio frequencies, relinquishes its equipment and transfers any
unexpended levy proceeds and association equipment replacement reserves to another sub-
region or consortium of sub-regions.
91
CITY OF AUBURN: 2009 CAFR NOTES TO THE FINANCIAL STATEMENTS
The share of equity belonging to the five participating cities is as follows:
Equity Dec. 31, 2008 $4,454,176 $ 6,372,363 $4,234,611 $2,570,406 $ 2,689,657 $ 20, 321, 213
Current year change 199,747 255,808 174,166 90,843 213,819 934,383
Equity Dec 31, 2009 $ 4,653,923 $ 6,628,171 $4,408,777 $ 2,661,249 $ 2,903,476 $ 21,255,596
% of equity 21.90% 31.18% 20.74% 12.52% 13.6611/c.
% of 2009 distribution 21.38%I 27.38% 18.64% 9.72% 22.88%
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 Agreement.
SCORE, an governmental administrative agency pursuant to RCW 39.34.030 (3), has the power
to acquire, construct, own, operate, maintain, equip, and improve a correctional facility known as
the "SCORE Facility" and to provide correctional services and functions incidental thereto, for the
purpose of detaining arrestees and sentenced offenders in the furtherance of public safety and
emergencies within the jurisdiction of the Member Cities. The SCORE Facility may serve the
Member Cities and Subscribing Agencies which are in need of correctional facilities. Any
agreement with a Subscribing Agency shall be in writing and approved by SCORE as provided
within the SCORE Formation Interlocal Agreement.
Financing for the acquisition, construction, equipping, and improvement of the SCORE Facility
will be provided by bonds issued by the South Correctional Entity Facility Public Development
Authority (the "SCORE PDA"), a public development authority chartered by the City of Renton
pursuant to RCW 35.21.730 through 35.21.755 and secured by the full faith and credit of the
Cities of Auburn, Burien Federal Way, Renton, SeaTac, and Tukwila (the "Owner Cities'). The
SCORE PDA issued $86 million in special obligation bonds in 2009 to carry out the facility
development project. The following is a summary of the debt service requirements for the bond
issue:
92
CITY OF AUBURN: 2009 CAFR NOTES TO THE FINANCIAL STATEMENTS
Summa of Debt Service Req
uirements
Debt Service Schedule
Debt
Service Allocation to Owner Cities
35% BABs
Auburn
Burien
Federal Wag
Renton
SeaTac
Tukwila
Year
Pnnclpal
Interest
Subslay
Iotal
31%
4%
18%
3[%
3%
tl%
2010
$ -
£ 3,394,191
$ (265,223) $
3,128,968
$
969.980 $
125,159 $
563,214 $
1,126,428 $
93,869 $
250,317
2011
-
5,155,732
(1,675,089)
3 .480,643
1,078 999
139,226
626,516
1,253,031
104,419
278,451
2112
-
b, 1bb, l32
(1,675,089)
3,48U,643
1,Un;.J l
139,228
626,blb
1,2b3,U31
1U4,419
2td,4bl
2013
1,915,000
5,126,998
(1,675,089)
5,366,909
1,663,742
214,676
966,044
1,932,087
161,007
429,353
2114
1,95U,000
6,Ubb,6bb
(1,854,915)
5,381,591
1,b82,U93
214,4b4
9b5,u8b
1,93U,113
16U,848
428,921
2015-2019
10,750,000
24,045,404
(8,092,315)
26,703,089
8,277 958
1,068,124
4,806,556
9,613,112
801,093
2,136,247
2020-2024
12,905,000
21,102,168
(7 405,227)
26,601,941
8,246 602
1,064,078
4,788,349
9,576,699
798,058
2,128,155
2U2b-2029
lb,blb,000
16,833,lub
(6,067,796)
26,44U,J1U
8,196,ti82
1,Ubl,b3b
4,lb9,3b4
9,blu,128
lJ3, 22!
2,11 b, 213
2030-2034
19,265,000
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
2035-2039
23,775,000
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.
l otals
$ Ub,2Jb,000
$ 101,103,582
$ (34,337,200) $
153,001,382
$
47,430,428 $
6,120,057 $
27,540,248 $
55,080,497 $
4,590,041 $
12,240,109
Note: Interest
is to De paid Irom
bona proceeds tlunng the construction period (lulu -
2U11)
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, 2009 related to SCORE:
South Correctional Entity (SCORE)
2009
Owner Cities Equity Allocation
Member City
Percent of Equity
2008 Equity Balance 2009
Distribution
2009 Equity Balance
Auburn
31.
00% $
$
1,692,471
$ 1,692,471
Burien
4.
00%
218,383
218,383
Federal Way
18.
00%
982,725
982,725
Renton
36.
00%
1,965,450
1,965,450
SeaTac
3.
00%
163,787
163,787
Tukwila
8.
00%
436,767
436,767
Grand Totals
100.
00% $
$
5,459,583
$ 5,459,583
Completed financial statements for SCORE and SCORE PDA can be obtained from the SCORE
office, City of Renton, 1055 South Grady Way, Renton, WA 98057.
NOTE 16 -JOINTLY GOVERNED ORGANIZATION / RELATED PARTY
Residents of the cities of Auburn, Algona and Pacific approved in the November 7, 2006 general
election the creation of a regional fire authority pursuant to RCW 52.26. The new regional fire
protection service authority, called the Valley Regional Fire Authority (VRFA), provides first
responder fire and emergency medical services to residents of Auburn, Algona and Pacific. The
VRFA is a new municipal corporation, with its own Governing Board, and is legally separate from
the three cities it serves. The Governing Board of the VRFA consists of the Mayors of the three
cities within the VRFA service area, as well as two Councilmembers from each city. Membership
on the Governing Board is made by appointment from the city council of the respective member
cities. Effective January 1, 2007, all personnel, assets, equipment and contractual obligations of
the former Auburn Fire Department were transferred to the VRFA. Similar transfers were made by
the cities of Algona and Pacific.
In accordance with the interlocal agreement at time of formation, each member city retained its
obligation for LEOFF 1 firefighter and Fire Relief and Pension Plan obligations. During 2009
Auburn paid $28,446 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 2009
were $166,954. Medical premiums and benefit payments made under the Fire Relief and Pension
Plan for 2009 were $150,800.
93
CITY OF AUBURN: 2009 CAFR NOTES TO THE FINANCIAL STATEMENTS
NOTE 17 - CONTINGENCIES AND LITIGATION
As of December 31, 2009, a number of claims were pending against the City for damages and
legal actions. While the outcome of these actions is uncertain, no losses are clearly anticipated
at this time due to these pending claims. In the event of a liability finding against the City, it is
anticipated that any potential adverse judgment against the City also would be subject to
coverage under the City's comprehensive liability insurance, including public officials' errors and
omission insurance and general liability insurance.
NOTE 18 - RISK MANAGEMENT & INSURANCE
Risk Management
The City is exposed to various risks of loss such as: theft and damage and destruction of assets,
errors and omissions, injuries or property damage to others, employees' health, and natural
disasters. All risk financing activities are accounted for in the Insurance internal service fund. To
insure against risks of loss the City of Auburn is a member of the Washington Cities Insurance
Authority (WCIA).
Utilizing Chapter 48.62 RCW (self-insurance regulation) and Chapter 39.34 RCW (Interlocal
Cooperation Act), nine cities originally formed WCIA on January 1, 1981. WCIA was created for
the purpose of providing a pooling mechanism for jointly purchasing insurance, jointly self-
insuring, and / or jointly contracting for risk management services. WCIA has a total of 136
Members.
New members initially contract for a three-year term, and thereafter automatically renew on an
annual basis. A one-year withdrawal notice is required before membership can be terminated.
Termination does not relieve a former member from its unresolved loss history incurred during
membership.
Liability coverage is written on an occurrence basis, without deductibles. Coverage includes
general, automobile, police, public officials' errors or omissions, stop gap, and employee benefits
liability. Limits are $4 million per occurrence self insured layer, and $16 million per occurrence in
the re-insured excess layer. The excess layer is insured by the purchase of reinsurance and
insurance and is subject to aggregate limits. Total limits are $20 million per occurrence subject to
aggregate sublimits in the excess layers. The Board of Directors determines the limits and terms
of coverage annually.
Insurance coverage for property, automobile physical damage, fidelity, inland marine, and boiler
and machinery are purchased on a group basis. Various deductibles apply by type of coverage.
Property insurance and auto physical damage are self-funded from the members' deductible to
$500,000, for all perils other than flood and earthquake, and insured above that amount by the
purchase of reinsurance.
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.
94
CITY OF AUBURN: 2009 CAFR NOTES TO THE FINANCIAL STATEMENTS
An investment committee, using investment brokers, produces additional revenue by investment
of WCIA's assets in financial instruments which comply with all State guidelines. These revenues
directly offset portions of the membership's annual assessment.
A Board of Directors governs WCIA, which is comprised of one designated representative from
each member. The Board elects an Executive Committee and appoints a Treasurer to provide
general policy direction for the organization. The WCIA Executive Director reports to the
Executive Committee and is responsible for conducting the day to day operations of WCIA.
No settlement has exceeded insurance coverage over the past three years
Workers' Compensation
Title 51 RCW requires the City to ensure payment of benefits for job-related injuries and diseases
through the Workers' Compensation fund or through self-insurance. The City participates in the
State of Washington's Workers' Compensation program. Premiums are based on individual
employer's reported payroll hours and insurance rates based on each employer's risk
classification and past experience. The premium is paid by employer and employee contributions.
NOTE 19 - SUBSEQUENT EVENTS
On May 3, 2010, the City of Auburn issued approximately $31,990,000 in Limited General
Obligation (LTGO) Bonds. The bonds will be used for the following purposes: 1) refunding all or a
portion of the City's outstanding LTGO 1998 bonds; 2) to pay for downtown infrastructure
improvements which includes utility relocation and upsizing, a promenade with open plazas, and
a new street surface, and 3) to pay for a portion of the cost 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 (Note 8).
95
CITY OF AUBURN: 2009 CAFR NOTES TO THE FINANCIAL STATEMENTS
!l~
C17 V
-IF
* MORE THAN YOU IMAGINED
96
CITY OF AUBURN: 2009 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES
NON-MAJOR GOVERNMENTAL FUNDS
THE CITY HAS FOUR TYPES OF NON-MAJOR GOVERNMENTAL FUNDS:
Special Revenue Funds
Special revenue funds account for the proceeds of specific revenue sources and
are segregated into individual funds to ensure that expenditures are made
exclusively for qualified purposes. Special revenue funds are accounted for on a
modified accrual basis. Biennial budgets are adopted with appropriations lapsing at
year-end.
Debt Service Funds
Debt service funds account for payments of principal and interest on general
obligation and special assessment long-term debt.
Capital Project Funds
Capital project funds account for the City of Auburn's financial resources used for the
acquisition or construction of major non-proprietary capital facilities.
Permanent Funds
Permanent funds are used to report resources that are legally restricted to the extent
that only earnings, and not principal, may be used for purposes that support City
programs that are for the benefit of the City or its citizens.
97
CITY OF AUBURN: 2009 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES
CITY OF AUBURN, WASHINGTON
COMBINING BALANCE SHEET
NON-MAJOR GOVERNMENT FUNDS
DECEMBER 31, 2009
TOTAL TOTAL TOTAL TOTAL TOTAL
NON-MAJOR NON-MAJOR NON-MAJOR NON-MAJOR NON-MAJOR
SPECIAL REVENUE DEBT SERVICE CAPITAL PROJ PERMANENT GOVERNMENTAL
FUNDS FUNDS FUNDS FUNDS FUNDS
ASSETS:
CASH AND CASH EQUIVALENTS $ 14,103,143 $ 185,179 $ 645,778 $ 1,506.362 $ 16,440,462
INVESTMENTS - - - - -
RECEIVABLES:
OTHER RECEIVABLES 56,345 - 56.345
SPECIAL ASSESSMENTS - 650.919 - 650.919
DUE FROM OTHER GOVERNMENTAL UNITS 127,435 - 21,379 148,814
DEFERRED CHARGES 4.320 - - - 4,320
TOTAL ASSETS $ 14,291,243 $ 836.098 $ 667,157 $ 1,506,362 $ 17,300,860
LIABILITIES AND FUND BALANCES:
CURRENT PAYABLES
DEFERRED REVENUE
FUND BALANCES:
RESERVED FOR:
DEBT SERVICE
ENDOWMENT
UNRESERVED
DESIGNATED FOR MITIGATION
UNDESIGNATED
$ 347,848 $ - $ 15,490 $ $ 363.338
- 650,919 - 650.919
347.848 650.919 15.490 1,014,257
185,179
- 185,179
1,352, 859 1,352,859
5,971,594 - - 5,971.594
7,971,801 - 651,667 153.503 8,776.971
13.943.395 185.179 651.667 1.506.362 16.286.603
98
CITY OF AUBURN: 2009 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES
CITY OF AUBURN, WASHINGTON
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
NON-MAJOR GOVERNMENT FUNDS
FOR THE YEAR ENDED DECEMBER 31, 2009
TOTAL TOTAL TOTAL TOTAL TOTAL
NON-MAJOR NON-MAJOR NON-MAJOR NON-MAJOR NON-MAJOR
SPECIAL REVENUE DEBT SERVICE CAPITAL PROJECTS PERMANENT GOVERNMENTAL
REVENUES:
TAXES:
PROPERTY
INTERFUND UTILITY
UTILITY
EXCISE
OTHER
INTERGOVERNMENTAL
CHARGES FOR SERVICES
SPECIAL ASSESSMENTS
INVESTMENT EARNINGS
MISCELLANEOUS
TOTAL REVENUES
EXPENDITURES:
CURRENT:
SECURITY OF PERSONS & PROPERTY
TRANSPORTATION
ECONOMIC ENVIRONMENT
DEBT SERVICE
PRINCIPAL
INTEREST
CAPITAL OUTLAY
TOTAL EXPENDITURES
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES)
$ 2,200,000 $
$ 113,152 $ $
2.313,152
394.959
-
394.959
1.133.464
1.133.464
70,777
70,777
52,480
-
52,480
629.017
150.588
779.605
1.700.823
22.546 40.639
1.764.008
51,467 -
51,467
95.516
36.018 2.626 25.327
159,487
304.926
- 64.079 -
369,005
6,581,962
87,485 352,991 65,966
7,088,404
405.831 405,831
3.045.695 3.045.695
687.387 687.387
230,825 230,825
135.546 - 135,546
- - 1,183,571 1,183,571
4,138.913 366,371 1,183.571 5.688.855
SALE OF CAPITAL ASSETS
-
-
26.977
26.977
TRANSFERS IN (Note 5)
1,028,099
302,500
1,170,441
2,501,040
TRANSFERS OUT (Note 5)
(2,439,386)
(10,000)
- (40,000)
(2,489,386)
TOTAL OTHER FINANCING SOURCES (USES)
(1,411,287)
292,500
1,197,418 (40,000)
38,631
NET CHANGE IN FUND BALANCES
1.031.762
13.614
366.838 25.966
1.438.180
FUND BALANCES - BEGINNING 12,911,633 171,565 284,829 1,480,396 14,848,423
FUND BALANCES -ENDING i $ 13,943.395 $ 185,179 $ 651,667 $ 1.506.362 $ 16.286.603
99
CITY OF AUBURN: 2009 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES
f T'T ~►T fl ~ ~
* MORE THAN YOU IMAGINED
100
CITY OF AUBURN: 2009 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES
NON-MAJOR GOVERNMENTAL FUNDS
Special Revenue Funds
Special revenue funds account for the proceeds of specific revenue sources
and are segregated into individual funds to ensure that expenditures are
made exclusively for qualified purposes. Special revenue funds are
accounted for on a modified accrual basis. Annual budgets are adopted with
appropriations lapsing each year of the biennium.
The City has ten non-major special revenue funds
The Local Street Fund - This fund was created when Auburn voters
approved the Save Our Streets lid lift in 2004 and is used to account for all
revenues and expenditures related to this initiative.
Hotel/Motel Tax Fund - This fund was created to account for the hotel/motel
taxes levied to support City tourist promotion.
Arterial Street Preservation Fund - This fund was created to repair
classified arterial streets and is funded from a one percent utility tax increase
that was adopted by Council in 2008.
Drug Forfeiture Fund - Money seized and forfeited from drug activity is
deposited in this fund to be used exclusively for drug investigation and
enforcement.
Local Law Enforcement Block Grant - Accounts for police overtime relating
to community oriented policing.
The Housing and Community Development Fund - Accounts for projects
associated with the Community Development Block Grant program.
The Recreational Trails Fund - Created for the purpose of trail development.
This is a tax-supported fund.
The Business Improvement Area Fund - Accounts for special assessments
on downtown merchants for ongoing services and for improvements made to
the downtown area.
The Cumulative Reserve Fund - Created for the purpose of revenue
stabilization for future operations.
Mitigation Fees - Accounts for the receipt of contracted mitigation fees for
streets and fire service.
101
CITY OF AUBURN: 2009 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES
CITY OF AUBURN, WASHINGTON
COMBINING BALANCE SHEET
NON-MAJOR SPECIAL REVENUE FUNDS
DECEMBER 31. 2009
Page 1 of 2
HOTEL/ ARTERIAL LOCAL
LOCAL MOTEL STREET DRUG LAW
STREEETS TAX PRESERVATION FORFEITURE ENFORCEMENT
ASSETS:
CASH AND CASH EQUIVALENTS
RECEIVABLES:
OTHER RECEIVABLES
DUE FROM OTHER GOVERNMENTAL UNITS
DEFERRED CHARGES
TOTALASSETS
LIABILITIES AND FUND BALANCES:
CURRENT PAYABLES
TOTAL LIABILITIES
FUND BALANCES:
UNRESERVED
DESIGNATED FOR MITIGATION
UNDESIGNATED
TOTAL FUND BALANCES
$ 1.550,721 $ 99.870 $ 179.388 $ 767,905 $ 15,418
56,345
- 28,940
- 4.320 - -
$ 1,550,721 $ 104,190 $ 235,733 $ 796,845 $ 15,418
$ 62,116 $ 3,514 $ 99,144 $ 51,099 $
62,116 3,514 99,144 51.099
1,488,605 100,676 136,589 745,746 15,418
1,488,605 100.676 136.589 745,746 15.418
102
CITY OF AUBURN: 2009 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES
HOUSING BUSINESS
COMMUNITY RECREATION IMPROVEMENT CUMULATIVE MITIGATION
Page 2 of 2
TOTAL
NON-MAJOR
SPECIAL REVENUE
$ 11.131 $ 44,976 $ 56.103 $ 5.360.687 $ 6.016,944 $ 14,103,143
- - - - - 56.345
98,495 - - 127,435
- - - - - 4,320
$ 109,626 $ 44,976 $ 56,103 $ 5,360,687 $ 6,016,944 $ 14,291,243
$ 75,818 $ $ 10,807 $ $ 45,350 $ 347,848
75,818 10,807 - 45,350 347,848
33,808 44,976 45,296 5,360,687
33,808 44,976 45,296 5,360,687
5,971,594 5,971,594
- 7,971,801
5,971,594 13,943,395
103
CITY OF AUBURN: 2009 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES
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, 2009
Page 1 of 2
HOTEL/
ARTERIAL
LOCAL LAW
LOCAL
MOTEL
STREET
DRUG
ENFORCEMENT
STREETS
TAX
PRESERVATION
FORFEITURE
GRANT
REVENUES:
TAXES:
PROPERTY
$ 2,200,000
$
$ -
$
$
INTERFUND UTILITY
-
394,959
UTILITY
1,133,464
EXCISE
70,777
-
OTHER
-
INTERGOVERNMENTAL
-
56,318
CHARGES FOR SERVICES
-
1,350
-
-
-
INVESTMENT EARNINGS
7,574
672
3,357
4,662
180
MISCELLANEOUS
-
-
-
304,926
-
TOTAL REVENUES
2.207,574
71799
1,531.780
365,906
180
EXPENDITURES:
CURRENT:
SECURITY OF PERSONS & PROPERTY
TRANSPORTATION
ECONOMIC ENVIRONMENT
1,536,362
- 74,159 - - -
1,536,362 74,159 1,509,333 294,050 13,681
1,509,333
294,050 13,681
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES):
TRANSFERS IN (Note 5)
TRANSFERS OUT (Note 5)
TOTAL OTHER FINANCING SOURCES (USES)
NET CHANGE IN FUND BALANCES
FUND BALANCES- BEGINNING
150,000 114,142
821,212 (1,360) 136,589 71,856 (13,501)
667,393 102,036 - 673,890 28,919
$ 1,488.605 $ 100,676 $ 136,589 $ 745,746 $ 15,418
104
CITY OF AUBURN: 2009 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES
Page 2 of 2
TOTAL
HOUSING BUSINESS NON-MAJOR
COMMUNITY RECREATION IMPROVEMENT CUMULATIVE MITIGATION SPECIAL REVENUE
DEVELOPMENT TRAILS AREA RESERVE FEES FUNDS
$ $ $ $ $ $ 2,200,000
394,959
1,133,464
70,777
52.480 52,480
572.699 - 629,017
- - - 1,699,473 1,700,823
315 405 37,949 40,402 95,516
304,926
581.962
98,100 405,831
- - - 3,045,695
570,133 43,095 - 687,387
570,133 43,095 98,100 4,138, 913
7,000 766,967 1,028,099
- (1,300,785) (1,138,601) (2,439,386)
7,000 (543,828) (1,138,601) (1,411,287)
2,566 7,315 9,790 (505,879) 503,174 1,031,762
31,242 37,661 35,506 5,866,566 5,468,420 12,911,633
105
CITY OF AUBURN: 2009 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES
CITY OF AUBURN, WASHINGTON
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
LOCAL STREETS SPECIAL REVENUE FUND
FOR THE YEAR ENDED DECEMBER 31, 2009
ORIGINAL
BUDGET
(GAAP BASIS)
FINAL
AMENDED
BUDGET
(GAAP BASIS)
ACTUAL
RESULTS
VARIANCE WITH
FINAL BUDGET
POSITIVE
(NEGATIVE)
REVENUES:
TAXES:
PROPERTY
$ 2,200,000
$ 2,200,000
$ 2,200,000
$
INVESTMENT EARNINGS
13.200
13,200
7.574
(5.626)
MISCELLANEOUS
TOTAL REVENUES
-
2,213,200
-
2,213,200
-
2,207,574
(5,626)
EXPENDITURES:
CURRENT:
TRANSPORTATION
2,200.000
2,420,150
1.536.362
883.788
TOTAL EXPENDITURES
2,200,000
2,420,150
1.536.362
883,788
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
13,200
(206,950)
671,212
878,162
OTHER FINANCING SOURCES [USES):
TRANSFERS IN (Note 5)
TOTAL OTHER FINANCING SOURCES (USES)
150,000
150.000
150,000
150,000
150,000
150.000
-
-
NET CHANGE IN FUND BALANCES
163,200
(56,950)
821,212
878,162
FUND BALANCES- BEGINNING
FUND BALANCES - ENDING
441.441
$ 604.641
667,394
$ 610,444
667.393
$ 1,488.605
(1)
$ 878.161
106
CITY OF AUBURN: 2009 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES
CITY OF AUBURN, WASHINGTON
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
HOTEL/MOTEL TAX SPECIAL REVENUE FUND
FOR THE YEAR ENDED DECEMBER 31, 2009
FINAL
VARIANCE WITH
ORIGINAL
AMENDED
FINAL BUDGET
BUDGET
BUDGET
ACTUAL
POSITIVE
(GAAP BASIS)
(GAAP BASIS)
RESULTS
(NEGATIVE)
REVENUES:
TAXES:
EXCISE
$ 76,000
$ 76,000
$ 70,777
$ (5,223)
CHARGES FOR SERVICES
9,100
9,100
1,350
(7,750)
INVESTMENT EARNINGS
2,500
2,500
672
(1,828)
TOTAL REVENUES
87,600
87,600
72,799
(14,801)
EXPENDITURES:
CURRENT:
ECONOMIC ENVIRONMENT
153,000
185,000
74,159 110,841
TOTAL EXPENDITURES
153
000
185
000
74
159 110
841
,
,
,
,
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
(65,400)
(97.400)
(1,360) 96.040
NET CHANGE IN FUND BALANCES
(65,400)
(97,400)
(1,360) 96,040
FUND BALANCES- BEGINNING
98,000
102,036
102,036
FUND BALANCES- ENDING
$ 32,600 $
4.636 $
100,676 $ 96.040
107
CITY OF AUBURN: 2009 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES
CITY OF AUBURN, WASHINGTON
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
ARTERIAL STREET PRESERVATION SPECIAL REVENUE FUND
FOR THE YEAR ENDED DECEMBER 31, 2009
FINAL
VARIANCE WITH
ORIGINAL
AMENDED
FINAL BUDGET
BUDGET
BUDGET
ACTUAL
POSITIVE
(GAAP BASIS)
(GAAP BASIS)
RESULTS
(NEGATIVE)
REVENUES:
TAXES:
INTERFUND UTILITY
$ 383,200
$ 383,200
$ 394,959
$ 11,759
UTILITY
1,116,800
1,116,800
1,133,464
16,664
INVESTMENT EARNINGS
27,000
27,000
3,357
(23,643)
TOTAL REVENUES
1,527,000
1.527.000
1,531.780
4,780
EXPENDITURES:
CURRENT:
TRANSPORTATION 1,500,000 1,819,000 1,509,333 309,667
TOTAL EXPENDITURES 1,500.000 1.819.000 1.509.333 309.667
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 27,000 (292,000) 22,447 314,447
OTHER FINANCING SOURCES (USES):
TRANSFERS IN (Note 5) 296,700 114,142 (182,558)
TRANSFERS OUT (Note 5) - -
TOTAL OTHER FINANCING SOURCES (USES) 296,700 114,142 (182,558)
NET CHANGE IN FUND BALANCES
FUND BALANCES- BEGINNING
27.000 4.700 136,589 131,889
108
CITY OF AUBURN: 2009 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES
CITY OF AUBURN, WASHINGTON
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
DRUG FORFEITURE SPECIAL REVENUE FUND
FOR THE YEAR ENDED DECEMBER 31, 2009
FINAL
VARIANCE WITH
ORIGINAL
AMENDED
FINAL BUDGET
BUDGET
BUDGET
ACTUAL
POSITIVE
(GAAP BASIS)
(GAAP BASIS)
RESULTS
(NEGATIVE)
REVENUES:
INTERGOVERNMENTAL
$ -
$ -
$ 56,318
$ 56,318
INVESTMENT EARNINGS
15,000
15,000
4,662
(10,338)
MISCELLANEOUS
200,000
200,000
304,926
104,926
TOTAL REVENUES
215,000
215,000
365,906
150,906
EXPENDITURES:
CURRENT:
SECURITY OF PERSONS & PROPERTY 355,700 394,560 294,050 100,510
TOTAL EXPENDITURES 355,700 394,560 294,050 100,510
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (140,700) (179,560) 71,856 251,416
NET CHANGE IN FUND BALANCES
(140,700) (179,560) 71,856 251,416
FUND BALANCES- BEGINNING 554,807 673,890 673,890 -
FUND BALANCES- ENDING $ 414.107 $ 494.330 $ 745,746 $ 251,416
109
CITY OF AUBURN: 2009 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES
CITY OF AUBURN, WASHINGTON
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
LOCAL LAW ENFORCEMENT GRANT SPECIAL REVENUE FUND
FOR THE YEAR ENDED DECEMBER 31. 2009
FINAL
VARIANCE WITH
ORIGINAL
AMENDED
FINAL BUDGET
BUDGET
BUDGET
ACTUAL POSITIVE
(GAAP BASIS)
(GAAP BASIS)
RESULTS (NEGATIVE)
REVENUES:
INTERGOVERNMENTAL
INVESTMENT EARNINGS
TOTALREVENUES
$ 13,000 $ 13,000 $
$ (13,000)
EXPENDITURES:
CURRENT:
SECURITY OF PERSONS & PROPERTY
TOTAL EXPENDITURES
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES):
TRANSFERS IN (Note 5)
TRANSFERS OUT (Note 5)
TOTAL OTHER FINANCING SOURCES (USES)
NET CHANGE IN FUND BALANCES
FUND BALANCES- BEGINNING
FUND BALANCES- ENDING
100 100 180 80
13,100 13,100 180 (12,920)
14,400 14,400 13,681 719
14,400 14,400 13,681 719
1,300 1.300 (1,300)
(13,501) (13.501)
12,261 28,919 28,919
$ 12,261 $ 28,919 $ 15,418 $ (13,501)
110
CITY OF AUBURN: 2009 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES
CITY OF AUBURN, WASHINGTON
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
HOUSING & COMMUNITY DEVELOPMENT SPECIAL REVENUE FUND
FOR THE YEAR ENDED DECEMBER 31, 2009
FINAL
VARIANCE WITH
ORIGINAL
AMENDED
FINAL BUDGET
BUDGET
BUDGET
ACTUAL
POSITIVE
(GAAP BASIS)
(GAAP BASIS)
RESULTS
(NEGATIVE)
REVENUES:
INTERGOVERNMENTAL
TOTAL REVENUES
$ 600,900
600,900
$ 600,900
600,900
$ 672,699
572,699
$ (28,201)
(28.201)
EXPENDITURES:
CURRENT:
ECONOMIC ENVIRONMENT
600.900
600.020
570.133
29,887
HEALTH & HUMAN SERVICES
-
-
-
-
111
CITY OF AUBURN: 2009 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES
CITY OF AUBURN, WASHINGTON
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
RECREATION TRAILS SPECIAL REVENUE FUND
FOR THE YEAR ENDED DECEMBER 31, 2009
ORIGINAL
BUDGET
(GAAP BASIS)
FINAL
AMENDED
BUDGET
(GAAP BASIS)
ACTUAL
RESULTS
VARIANCE WITH
FINAL BUDGET
POSITIVE
(NEGATIVE)
REVENUES:
INVESTMENT EARNINGS
TOTAL REVENUES
$ 800
800
$ 800
800
$ 315
315
$ (485)
(485)
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
800
800
315
(485)
OTHER FINANCING SOURCES (USES):
TRANSFERS IN (Note 5)
TOTAL OTHER FINANCING SOURCES (USES)
7,000
7,000
7,000
7,000
7,000
7,000
-
-
NET CHANGE IN FUND BALANCES
7,800
7,800
7,315
(485)
FUND BALANCES- BEGINNING 37,494 37,661 37,661
FUND BALANCES- ENDING $ 45,294 $ 45,461 $ 44,976 $ (485)
112
CITY OF AUBURN: 2009 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES
CITY OF AUBURN, WASHINGTON
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
BUSINESS IMPROVEMENT AREA SPECIAL REVENUE FUND
FOR THE YEAR ENDED DECEMBER 31, 2009
FINAL
VARIANCE WITH
ORIGINAL
AMENDED
FINAL BUDGET
BUDGET
BUDGET
ACTUAL
POSITIVE
(GAAP BASIS)
(GAAP BASIS)
RESULTS
(NEGATIVE)
REVENUES:
TAXES:
OTHER
$ 53,000
$ 53,000
$ 52,480
$ (520)
INVESTMENT EARNINGS
2,000
2,000
405
(1,595)
TOTAL REVENUES
55.000
55,000
52,885
(2,115)
EXPENDITURES:
CURRENT:
ECONOMIC ENVIRONMENT
TOTAL EXPENDITURES
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
NET CHANGE IN FUND BALANCES
FUND BALANCES- BEGINNING
FUND BALANCES- ENDING
53,000 53,000 43,095 9,905
53,000 53,000 43,095 9,905
2,000 2,000 9,790 7,790
68,958 35,506 35,506 -
$ 70,958 $ 37,506 $ 45,296 $ 7,790
113
CITY OF AUBURN: 2009 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES
CITY OF AUBURN, WASHINGTON
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
CUMULATIVE RESERVE SPECIAL REVENUE FUND
FOR THE YEAR ENDED DECEMBER 31, 2009
ORIGINAL
BUDGET
(GAAP BASIS)
FINAL
AMENDED
BUDGET
(GAAP BASIS)
ACTUAL
RESULTS
VARIANCE WITH
FINAL BUDGET
POSITIVE
(NEGATIVE)
REVENUES:
TAXES:
INVESTMENT EARNINGS
TOTAL REVENUES
$ 156,000
156,000
$ 156,000
156,000
$ 37,949
37,949
$ (118,051)
(118,051)
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
156,000
156,000
37,949
(118,051)
OTHER FINANCING SOURCES (USES):
TRANSFERS IN (Note 5)
-
1,500,000
756,957
(743,043)
TRANSFERS OUT (Note 5)
(488,000)
(4,100,000)
(1,300,785)
2,799,215
NET CHANGE IN FUND BALANCES
(332.000)
(2.444.000)
(505.879) 1,938,121
FUND BALANCES- BEGINNING
5,703,268
5,866,566
5,866,566
FUND BALANCES- ENDING
$ 5,371,268
$ 3,422,566
$ 5,360,687 $ 1,938,121
114
CITY OF AUBURN: 2009 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES
CITY OF AUBURN, WASHINGTON
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
MITIGATION SPECIAL REVENUE FUND
FOR THE YEAR ENDED DECEMBER 31, 2009
FINAL
VARIANCE WITH
ORIGINAL
AMENDED
FINAL BUDGET
BUDGET
BUDGET ACTUAL
POSITIVE
(GAAP BASIS)
(GAAP BASIS) RESULTS
(NEGATIVE)
REVENUES
CHARGES FOR SERVICES
INVESTMENT EARNINGS
EXPENDITURES:
CURRENT:
SECURITY OF PERSONS & PROPERTY
EXCESS (DEFICIENCY) OF REVENUES
OTHER FINANCING SOURCES (USES):
TRANSFERS OUT (.Note 5)
TOTAL OTHER FINANCING SOURCES (USES)
NET CHANGE IN FUND BALANCES
FUND BALANCES- BEGINNING
FUND BALANCES- ENDING
$ 810,000 $ 1,397,467 $ 1,699,473 $ 302,006
142,000 142,000 40,402 (101,598)
952,000 1,539,467 1,739,875 200,408
(1,575,100) (1,788,120) (1,138,601) 649,519
(1.575,100) (1,788120) (1,138.601) 649.519
(721,200) (460,753) 503,174 963,927
5,309,345 5,46^0,420 5,46^0,420 -
$ 4,588,145 $ 5,007,667 $ 5,971,594 $ 963,927
115
CITY OF AUBURN: 2009 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES
f T'T ~►T fl ~ ~
* MORE THAN YOU IMAGINED
116
CITY OF AUBURN: 2009 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES
NON-MAJOR GOVERNMENTAL FUNDS
Debt Service Funds
Debt service funds account for payments of principal and interest on general
obligation and special assessment long-term debt. The City of Auburn has
one outstanding general obligation issue, and three special assessment funds.
The 1998 General Obligation Library Bonds - Accounts for debt service on
a Council-approved bond issue to finance, in conjunction with King County, the
construction of a new library in the City.
The L.I.D. Guarantee Fund - This fund provides financial security for out-
standing 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.
117
CITY OF AUBURN: 2009 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES
CITY OF AUBURN, WASHINGTON
COMBINING BALANCE SHEET
NON-MAJOR DEBT SERVICE FUNDS
DECEMBER 31, 2009
1998 GO
LIBRARY
BOND DEBT GU
LID SPECIAL
ARANTEE ASSESSMENTS
TOTAL
NON-MAJOR
DEBT SERVICE
FUNDS
ASSETS:
CASH AND CASH EQUIVALENTS
$ 37,746 $
52,599 $ 94,834 $
185,179
RECEIVABLES:
SPECIAL ASSESSMENTS
TOTAL ASSETS
-
$ 37,746 $
- 650,919
52,599 $ 745,753 $
650,919
836,098
LIABILITIES AND FUND BALANCES:
DEFERRED REVENUE
$ - $
- $ 650,919 $
650,919
TOTAL LIABILITIES
-
650,919
650,919
FUND BALANCES:
RESERVED FOR:
DEBT SERVICE
37,746
- 94,834
132.580
LID GUARANTEE
TOTAL FUND BALANCES
TOTAL LIABILITIES AND FUND BALANCES
-
37.746
$ 37,746 $
52.599 -
52.599 94,834
52,599 $ 745,753 $
52.599
185.179
836,098
118
CITY OF AUBURN: 2009 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES
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, 2009
TOTAL
1998 G.O. NON-MAJOR
LIBRARY L I D SPECIAL DEBT SERVIC
BT GUARANTEE ASSESSMENTS
TAXES:
SPECIAL ASSESSMENTS
$ - $
- $
51,467 $
51,467
INVESTMENT EARNINGS
TOTAL REVENUES
1,083
1,083
369
369
34,566
86,033
36.018
87,485
EXPENDITURES:
DEBT SERVICE
PRINCIPAL
205,000
-
25,825
230,825
INTEREST
TOTAL EXPENDITURES
102,440
307,440
-
33,106
58.931
135,546
366,371
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
(306,357)
369
27,102
(278,886)
OTHER FINANCING SOURCES (USES):
TRANSFERS IN (Note 5)
302,500
-
-
302,500
TRANSFERS OUT (Note 5)
TOTAL OTHER FINANCING SOURCES (USES)
-
302,500
(10,000)
(10.000)
-
-
(10,000)
292,500
NET CHANGE IN FUND BALANCES
(3,857)
(9,631)
27,102
13,614
FUND BALANCES - BEGINNING
FUND BALANCES - ENDING
41,603
$ 37,746 $
62,230
52,599 $
67,732
94,834 $
171,565
185,179
119
CITY OF AUBURN: 2009 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES
CITY OF
* MORE THAN YOU IMAGINED
120
fi
CITY OF AUBURN: 2009 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES
NON-MAJOR GOVERNMENTAL FUNDS
Capital Project Funds
Capital projects funds account for the City of Auburn's financial resources
used for the acquisition or construction of major non-proprietary capital
facilities. Auburn has one non-major capital project fund.
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.
121
CITY OF AUBURN: 2009 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES
CITY OF AUBURN, WASHINGTON
BALANCE SHEET
NON-MAJOR CAPITAL PROJECT FUND
DECEMBER 31, 2009
CONSTRUCTION
FUNDS
ASSETS:
CASH AND CASH EQUIVALENTS $ 645,778 $ 645,778
DUE FROM OTHER GOVERNMENTAL UNITS 21,379 21,379
TOTAL ASSETS $ 667,157 $ 667,157
LIABILITIES AND FUND BALANCES:
CURRENT PAYABLES $ 15,490 15,490
TOTAL LIABILITIES 15,490 15,490
FUND BALANCES:
UNRESERVED
UNDESIGNATED
651,667 $ 651,667
651,667 651,667
122
CITY OF AUBURN: 2009 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES
CITY OF AUBURN, WASHINGTON
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES
NON-MAJOR CAPITAL PROJECT FUND
FOR THE YEAR ENDED DECEMBER 31. 2009
MUNICIPAL NON-MAJOR
PARK CAPITAL PROJECTS
CONSTRUCTION FUNDS
REVENUES:
TAXES:
PROPERTY
INTERGOVERNMENTAL
CHARGES FOR SERVICES
113,152 $ 113,152
150,588 150,588
22.546 22.546
INVESTMENT EARNINGS 2,626 2,626
MISCELLANEOUS 64,079 64,079
TOTAL REVENUES 352,991 352,991
EXPENDITURES:
CAPITAL OUTLAY 1,183,571 1,183,571
TOTAL EXPENDITURES 1,183,571 1,183.571
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES):
SALES OF CAPITAL ASSETS
TRANSFERS IN iNote 51
TOTAL OTHER FINANCING SOURCES (USES)
26,977 26,977
1,170,441 1,170,441
1,197,418 1,197,418
NET CHANGE IN FUND BALANCES
FUND BALANCES - BEGINNING
366,838
284,829
366,838
284,829
123
CITY OF AUBURN: 2009 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES
CITY OF
* MORE THAN YOU IMAGINED
124
fi
CITY OF AUBURN: 2009 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES
NON-MAJOR GOVERNMENTAL FUNDS
Permanent Funds
Permanent funds are used to report resources that are legally restricted to the
extent that only earnings. and not principal, may be used for purposes that
support City programs that are for the benefit of the City or its citizens. Auburn
has one permanent fund.
The Cemetery Endowed Care Fund - Accounts for non-expendable
investments held by the City's trustee. The interest income from investments is
available for use by the cemetery fund for capital enhancement and
maintenance.
125
CITY OF AUBURN: 2009 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES
CITY OF AUBURN, WASHINGTON
BALANCE SHEET
PERMANENTFUND
DECEMBER 31, 2009
CEMETERY
ENDOWED
CARE
ASSETS:
CASH AND CASH EQUIVALENTS
NON-EXPENDABLE TRUST $ 1,506,362
INVESTMENTS -
TOTAL ASSETS $ 1,506,362
FUND BALANCES:
RESERVED FOR:
ENDOWMENT
UNRESERVED
UNDESIGNATED
$ 1,352,859
153,503
1,506,362
$ 1,506,362
126
CITY OF AUBURN: 2009 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES
CITY OF AUBURN, WASHINGTON
STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCE
PERMANENT FUND
FOR THE YEAR ENDED DECEMBER 31, 2009
CEMETERY
ENDOWED
CARE
REVENUES:
INCREASE TO ENDOWMENT FROM LOT SALES
$ 40,639
INVESTMENT EARNINGS
25,327
TOTAL REVENUES 1
OTHER FINANCING SOURCES (USES):
TRANSFERS OUT (Note 5)
TOTAL OTHER FINANCING SOURCES (USES)
NET CHANGE IN FUND BALANCE
FUND BALANCE- BEGINNING
FUND BALANCE- ENDING
40,000)
140,000)
25,966
1,480,396
$ 1,506,362
127
CITY OF AUBURN: 2009 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES
CITY OF
* MORE THAN YOU IMAGINED
128
fi
CITY OF AUBURN: 2009 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES
NON-MAJOR PROPRIETARY FUNDS
Enterprise Funds
The City's enterprise funds are used to account for operations that are
financed and operated in a manner similar to private business operations. The
goods and services these funds provide to the general public are primarily
financed by service charges. Enterprise funds are self-supporting and use the
accrual method of accounting. Auburn has three non-major enterprise funds.
The Airport Fund - Provides accounting of the activities of the Auburn
Municipal Airport. Sources of income for the fund are leases, rentals, fuel
charges, investment interest, and grant funding as available.
The Cemetery Fund - Accounts for Mountain View Cemetery's operations.
The Commercial Retail Fund - Accounts for revenues and expenses related
to City-owned orleased property that is rented to commercial tenants.
129
CITY OF AUBURN: 2009 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES
CITY OF AUBURN, WASHINGTON
COMBINING STATEMENT OF NET ASSETS
NON-MAJOR ENTERPRISE FUNDS
DECEMBER 31, 2009
TOTAL
NON-MAJOR
COMMERCIAL ENTERPRISE
AIRPORT CEMETERY RETAIL FUNDS
ASSETS:
CURRENT ASSETS:
CASH AND CASH EQUIVALENTS
RESTRICTED CASH:
CUSTOMER DEPOSITS
CUSTOMER ACCOUNTS
INVENTORIES
TOTAL CURRENT ASSETS
NONCURRENT ASSETS:
LONG-TERM CONTRACTS AND NOTES
CAPITAL ASSETS:
LAND
BUILDINGS AND EQUIPMENT
IMPROVEMENTS OTHER THAN BUILDINGS
CONSTRUCTION IN PROGRESS
LESS: ACCUMULATED DEPRECIATION
TOTAL CAPITAL ASSETS (NET OF A/D)
LIABILITIES:
CURRENT LIABILITIES:
CURRENT PAYABLES
EMPLOYEE LEAVE BENEFITS-CURRENT
GENERAL OBLIGATION BONDS PAYABLE-CURRENT
DEPOSITS
TOTAL CURRENT LIABILITIES
NONCURRENT LIABILITIES:
DEFERRED REVENUE
EMPLOYEE LEAVE BENEFITS
GENERAL OBLIGATION BONDS PAYABLE
TOTAL NONCURRENT LIABILITIES
TOTAL LIABILITIES
NET ASSETS:
INVESTED IN CAPITAL ASSETS, NET OF RELATED DEBT
UNRESTRICTED
TOTAL NET ASSETS
1,045.971 $ 341.503 $ 650,277 $ 2,037.751
69.888 - - 69.888
3.909 - 3.909
- 11,395 - 11,395
1,119,768 352,898 650,277 2,122,943
6.542 6.542
3.653.343
342.835
-
3.996.178
2,476,174
1,015,894
1,096,555
4,588,623
5,189.952
1.082.094
356,229
6,628.275
3,012.041
18.896
-
3.030.937
(4,396,840)
(1,142,245)
(629,120)
(6,168,205)
9.934.670
1.317.474
823,664
12.075.808
26,939
36.399
63.338
1.797
16.179
17.976
85,000
85,000
69.888
69.888
183,624
52,578
236,202
-
6.542
6.542
594
5,347
5,941
1.182.567
498.373
1.680.940
1,183,161
510,262
1,693,423
8,667,103 819,102 823,664 10,309,869
1.020.550 294.972 650,277 1,965.799
$ 9,687.653 $ 1.114.074 $ 1,473,941 $ 12.275.668
130
CITY OF AUBURN: 2009 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES
CITY OF AUBURN, WASHINGTON
COMBINING STATEMENT OF REVENUES. EXPENSES. AND CHANGES IN FUND NET ASSETS
NON-MAJOR ENTERPRISE FUNDS
FOR THE YEAR ENDED DECEMBER 31, 2009
TOTAL
NON-MAJOR
COMMERCIAL ENTERPRISE
AIRPORT CEMETERY RETAIL FUNDS
OPERATING REVENUES:
CHARGES FOR SERVICES
INTEREST
OTHER OPERATING REVENUE
TOTAL OPERATING REVENUES
659,563 $ 694,688 $
1,470
1,354,251
1,470
OPERATING EXPENSES:
OPERATIONS & MAINTENANCE
ADMINISTRATION
DEPRECIATION/AMORTIZATION
OTHER OPERATING EXPENSES
TOTAL OPERATING EXPENSES
OPERATING INCOME (LOSS)
NON-OPERATING REVENUE (EXPENSE)
2,479
524,788
527,267
420,446
284.526
- 704,972
224,393
66,648
42,238 333,279
152
8,345
- 8,497
647,470
884,307
42,238 1,574,015
12,093
(188,149)
(42,238) (218,294)
INTEREST REVENUE
7,844
2.914
10,758
OTHER NON-OPERATING REVENUES
2,485,259
500
2,485,759
GAIN (.LOSS) ON SALE OF CAPITAL ASSETS
-
3,095
3,095
INTEREST EXPENSE
(70,963)
(21,776)
(92,739)
TOTAL NON-OPERATING REVENUE ( EXPENSE)
2,422,140
(15,267)
2,406,873
INCOME (LOSS) BEFORE CONTRIBUTIONS & TRANSFERS
2,434,233
(203,416) (42
,238) 2,188,579
TRANSFERS IN (Note 5)
TRANSFERS OUT (Note 5)
CHANGE IN NET ASSETS
40.000
40.000
TOTAL NET ASSETS BEGINNING OF YEAR 7,253,420 1,277,490 1,516,179
TOTAL NET ASSETS END OF YEAR $ 9,687,653 $ 1,114,074 $ 1,473,941
131
CITY OF AUBURN: 2009 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES
CITY OF AUBURN, WASHINGTON
COMBINING STATEMENT OF CASH FLOWS
NON-MAJOR ENTERPRISE FUNDS
FOR THE FISCAL YEAR ENDED DECEMBER 31. 2009
Page 1 of 2
TOTAL
NON-MAJOR
COMMERCIAL ENTERPRISE
AIRPORT CEMETERY RETAIL FUNDS
CASH FLOWS FROM OPERATING ACTIVITIES:
CASH RECEIVED FROM USERS
CASH PAID TO SUPPLIERS
CASH PAID FOR TAXES
CASH PAID FOR INVENTORY
CASH PAID TO EMPLOYEES
$ 650,194 $ 696,159 $ - $ 1,346,353
(376,706) (299,804) - (676,510)
(152) (8,345) - (8,497)
- (2,940) - (2,940)
(22,468) (524,260) - (546,727)
250,868 (139,190) 0 - 111,678
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:
TRANSFERS FROM OTHER FUNDS - 40,000
OPERATING TRANSFERS OUT - -
NET CASH PROVIDED (USED) BY NON-
CAPITAL FINANCING ACTIVITIES - 40,000
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES:
PROCEEDS FROM SALE OF EQUIPMENT
-
3,095
PURCHASE OF CAPITAL ASSETS
(2,657,536)
(31,222)
PROCEEDS FROM OTHER GOVERNMENTS
2,485,259
-
PREMIUM & BOND ISSUANCE COSTS
9,774
-
PRINCIPAL PAYMENT ON DEBT
(65,000)
-
INTEREST PAYMENT ON DEBT
(70,963)
(22,270)
OTHER CASH RECEIVED (PAID)
-
500
NET CASH PROVIDED (USED) FOR CAPITAL
AND RELATED FINANCING ACTIVITIES
(298,466)
(49,896)
40.000
- 40,000
- 3,095
- (2,688,758)
- 2,485,259
- 9,774
- (65,000)
- (93,233)
500
(348,361)
CASH FLOW FROM INVESTING ACTIVITIES:
INTEREST RECEIVED 7,844 2,914 - 10,758
NET CASH PROVIDED (USED) IN INVESTING ACTIVITIES 7,844 2,914 - 10,758
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS (39,754) (146,171) - (185,925)
CASH AND CASH EQUIVALENTS-BEGINNING OF YEAR 1,155,613 487,674 650,277 2,293,564
CASH AND CASH EQUIVALENTS-END OF YEAR $ 1,115759 $ 341,503 $ 650,277 $ 2,107,639
CASH AT END OF YEAR CONSISTS OF:
CASH AND CASH EQUIVALENTS $ 1,045,971 $ 341,503 $ 650,277 $ 2,037,751
RESTRICTED CASH-CUSTOMER DEPOSITS 69,888 - - 69,888
TOTAL CASH ; $ 1,115, 859 $ 341,503 $ 650,277 $ 2,107, 639
132
CITY OF AUBURN: 2009 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES
CITY OF AUBURN, WASHINGTON
COMBINING STATEMENT OF CASH FLOWS
NON-MAJOR ENTERPRISE FUNDS
FOR THE FISCAL YEAR ENDED DECEMBER 31. 2009
Page 2 of 2
TOTAL
NON-MAJOR
COMMERCIAL ENTERPRISE
AIRPORT CEMETERY RETAIL FUNDS
RECONCILIATION OF NET OPERATING INCOME TO NEW CASH
PROVIDED BY OPERATING ACTIVITIES
OPERATING INCOME (LOSS) $ 12,093 $ (188,149) $ (42,238) $ (218,294)
ADJUSTMENTS TO RECONCILE OPERATING INCOME TO NET CASH
PROVIDED (USED) BY OPERATING ACTIVITIES:
DEPRECIATION
INVENTORY
224,392 66,648 42,238 333,278
- (2,940) - (2,940)
LIABILITY (INCREASES) DECREASES:
ACCOUNTS & VOUCHERS PAYABLE
23,827 (24,246)
- (418)
DEPOSITS PAYABLE
(9,369) -
- (9,369)
WAGES & BENEFITS PAYABLE
11 885
- 895
COMPENSATED ABSENCES PAYABLE
(87) 8,613
- 8,526
TOTAL ADJUSTMENTS
238,775 48,959 42,2
38 329,973
NET CASH PROVIDED (USED) BY OPERATING ACTIVITI
ES $ 250,868 $ (139,190) $ -
$ 111,678
SCHEDULE OF NONCASH INVESTING, CAPITAL AND
FINANCING ACTIVITIES
CAPITAL ASSETS ACQUIRED BY CONTRIBUTED CAPITAL $
INCREASE (DECREASE) IN FAIR VALUE OF INVESTMENT
133
CITY OF AUBURN: 2009 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES
CITY OF
* MORE THAN YOU IMAGINED
134
J ~
CITY OF AUBURN: 2009 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES
NON-MAJOR PROPRIETARY FUNDS
Internal Service Funds
The City of Auburn's internal service funds are used to account for the
financing of goods and services provided by one department of operation to
other departments on a cost reimbursement basis. Internal service funds are
self-supporting and use the accrual method of accounting. Auburn has three
internal service funds.
The Insurance Fund - Provides a source of funds to pay unemployment
claims and property and casualty claims which fall below deductible levels.
The Facilities Funds - Accounts for the costs of maintaining various City
facilities.
The Information Services Fund - Accounts for the costs of purchasing and
maintaining the City's various computer and telecommunications systems.
The Equipment Rental Fund - Accounts for the costs of purchasing,
maintaining, and operating Auburn's fleet of vehicles and related equipment.
135
CITY OF AUBURN: 2009 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES
CITY OF AUBURN, WASH INGTON
COMBINING STATEMENTS OF NET ASSETS
INTERNAL SERVICE FUNDS
DECEMBER 31, 2009
CURRENT ASSETS:
CASH AND CASH EQUIVALENTS
$ 2.234.469 $ 364.681 $
4,206,834
$ 5.320.053
$ 12.126.037
CUSTOMER ACCOUNTS
- 6.510
-
6.510
DUE FROM OTHER GOVERNMENTAL UNITS
2,392
18,141
7,149
27,682
INVENTORIES
-
-
111,861
111,861
TOTAL CURRENT ASSETS
2,234,469 373,583
4,224,975
5,439,063
12,272,090
NONCURRENT ASSETS:
CAPITAL ASSETS:
BUILDINGS AND EQUIPMENT
- -
3.349.750
11.660.899
15.010.649
IMPROVEMENTS OTHER THAN BUILDINGS
-
46.591
46.591
CONSTRUCTION IN PROGRESS
238,803
193.435
432.238
LESS: ACCUMULATED DEPRECIATION
TOTAL CAPITAL ASSETS (NET OF AID)
(2,517,371)
1,071,182
(6,268.388)
5,632,537
(8,785.759)
6,703,719
LIABILITIES:
CURRENT LIABILITIES:
CURRENT PAYABLES
125.344
325.718 147.134 598.196
CUSTOMER DEPOSITS
5.725
- - 5.725
EMPLOYEE LEAVE BENEFITS-CURRENT
26.213
41,784 23.695 91.692
TOTAL CURRENT LIABILITIES
157,282
367,502 170,829 695,613
NONCURRENT LIABILITIES:
EMPLOYEE LEAVE BENEFITS 8,664 13,810 7,832 30,306
TOTAL NONCURRENT LIABILITIES 8,664 13,810 7,832 30,306
NET ASSETS:
INVESTED IN CAPITAL ASSETS, NET OF RELATED DEBT
- - 1,071,182
5,632,537
6,703,719
UNRESTRICTED
2,234,469 207,637 3,843,663
5,260,402
11,546,171
TOTAL NET ASSETS
$ 2,234,469 $ 207,637 $ 4,914,845
$ 10,892,939
$ 18,249,890
136
CITY OF AUBURN: 2009 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES
CITY OF AUBURN, WASHINGTON
COMBINING STATEMENT OF REVENUES. EXPENSES. AND CHANGES IN FUND NET ASSETS
INTERNAL SERVICE FUNDS
FOR THE YEAR ENDED DECEMBER 31, 2009
INSURANCE FACILITIES
INFORMATION
SERVICES
EQUIPMENT
RENTAL
TOTAL
OPERATING REVENUES:
CHARGES FOR SERVICES
$ $ 2,178,933
$ 4,629,788
$ 2,999,193
$ 9,807,914
OTHER OPERATING REVENUE
95.112
198,569
-
293.681
TOTAL OPERATING REVENUES
2,274,045
4,828,357
2,999,193
10,101,595
OPERATING EXPENSES:
OPERATIONS & MAINTENANCE
2,070,298
3,318,801
1,192,036
6,581,135
ADMINISTRATION
258,128 -
103,596
747.889
1,109,613
DEPRECIATION/AMORTIZATION
- -
498,973
1,034,255
1,533,228
TOTAL OPERATING EXPENSES
OPERATING INCOME (LOSS)
258,128 2,070.298
(258,128) 203,747
3.921.370
906,987
2.974.180
25,013
9.223,976
877,619
NON-OPERATING REVENUE (EXPENSEI:
INTEREST REVENUE
11,025
2,827
25,4G6
42,406
81,724
OTHER NON-OPERATING REVENUES
-
1.063
11.620
12,683
GAIN (LOSS) ON SALE OF CAPITAL ASSETS
TOTAL NON•OPERATING REVENUE (EXPENSE)
-
11,025
-
3,890
-
25,466
(12,790)
41,236
(12,790)
81,617
INCOME (LOSS) BEFORE CONTRIBUTIONS
CAPITAL CONTRIBUTIONS
(247,103)
207,637
-
932,453
-
66,249
61,445
959,236
61,445
TRANSFERS IN (Note 5)
204.100
204,100
TRANSFERS OUT (Note 5)
-
(81,000)
(7,000)
(88,000)
CHANGE IN NET ASSETS
(247.103)
207.637
851,453
324.794
1,136.781
TOTAL NET ASSETS BEGINNING OF YEAR
TOTAL NET ASSETS END OF YEAR
2,481,572
$ 2,234,469 $
-
207.637 $
4.063.392
4.914.845 $
10.568.145
10.892.939 $
17,113,109
18,249,890
137
CITY OF AUBURN: 2009 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES
CITY OF AUBURN, WASHINGTON
COMBINING STATEMENT OF CASH FLOWS
INTERNAL SERVICE FUNDS
FOR THE FISCAL YEAR ENDED DECEMBER 31, 2009
Page 1 of 2
INFORMATION EQUIPMENT
INSURANCE FACILITIES SERVICES RENTAL TOTAL
CASH FLOWS FROM OPERATING ACTIVITIES:
CASH RECEIVED FROM USERS $ - $
2.273,260
$ 4,823.217 $
2.999.193
$ 10.095,670
CASH PAID TO SUPPLIERS (252.570)
(1.130.500)
(1.677.670)
(1.333.917)
(4.394,658)
CASH PAID FOR TAXES
-
(5,557)
CASH PAID FOR INVENTORY
32,084
32,084
CASH PAID TO EMPLOYEES
(781,969)
(1,864,621)
(601,765)
3,248,355)
NET CASH PROVIDED (USED)
BY OP E RATIN G ACTIVITI ES (258.128)
360.791
1.280,926
1,095.594
2.479.184
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:
TRANSFERS IN
-
-
204,100
204,100
TRANSFERS OUT
(81,0001
(7,000)
(88,000)
NET CASH PROVIDED (USED) BY NON-
CAPITAL FINANCING ACTIVITIES -
-
(81,000)
197,100
116,100
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES:
PROCEEDS FROM SALE OF EQUIPMENT -
- 30,406
30,406
PURCHASE OF CAPITAL ASSETS -
- (364,442) (2,156,035)
(.2,520,477)
CONTRIBUTED CAPITAL -
- 3,300
3,300
PROCEEDS FROM OTHER GOVERNMENTS -
- 4,779
4,779
PROCEEDS FROM INSURANCE SETTLEMENT -
1.063 3.542
4.605
CASH FLOW FROM INVESTING ACTIVITIES:
INTEREST RECEIVED 11,025 2,827 25,465 49,606 88,923
NET CASH PROVIDED (USED) IN INVESTING ACTIVITIES 11.025 2,827 25.465 49,606 88.923
CASH AND CASH EQUIVALENTS-BEGINNING OF YEAR
2,481,572
3,345,884 6,091,761 11,919,217
CASH AT END OF YEAR CONSISTS OF:
CASH AND CASH EQUIVALENTS $ 2,234,469 $ 364,681 $ 4,206,834 $ 5,320,053 $ 12,126,038
TOTAL CASH $ 2,234,469 $ 364,681 $ 4,206,834 $ 5,320,053 $ 12,126,038
138
CITY OF AUBURN: 2009 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES
CITY OF AUBURN, WASHINGTON
COMBINING STATEMENT OF CASH FLOWS
INTERNAL SERVICE FUNDS
FOR THE FISCAL YEAR ENDED DECEMBER 31, 2009
2of2
INFORMATION EQUIPMENT
INSURANCE FACILITIES SERVICES RENTAL TOTAL
RECONCILIATION OF NET OPERATING INCOME TO NEW CASH
PROVIDED BY OPERATING ACTIVITIES
OPERATING INCOME
LOSS
258
1
$
28
$ 203
747 $
906
987
$ 25
013
$ 877
619
(
)
(
,
ADJUSTMENTS TO RECONCILE OPERATING INCOME TO NET CASH
)
,
,
,
,
PROVIDED (USED) BY OPERATING ACTIVITIES:
DEPRECIATION
- -
498.973
1,034.256
1,533.229
ASSET (INCREASES) DECREASES:
ACCOUNTS RECEIVABLE
- (8,902)
(5,141)
(7,149)
(21,192)
INVENTORY
- -
32,084
32.084
LIABILITY (INCREASES) DECREASES:
ACCOUNTS & VOUCHERS PAYABLE
- 85.667
(99,545)
3,438
(10.440)
WAGES & BENEFITS PAYABLE
- 39.677
(1,137)
4,933
43,473
DEPOSITS PAYABLE
- 5,725
-
5,725
COMPENSATED ABSENCES PAYABLE
34,877
(19,211)
3,021
18,687
TOTALADJUSTMENTS
- 157,044
373,939
1,070,582
1,601,565
NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES $ (258
1
28) $ 360
791 $
1
280
926
$ 1
095
594
$ 2
479
184
,
SCHEDULE OF NONCASH INVESTING, CAPITAL AND
,
,
,
,
,
,
.
FINANCING ACTIVITIES
CAPITAL ASSETS ACQUIRED BY CONTRIBUTED CAPITAL $
- $ - $
-
$ 61,445
$ 61,445
139
CITY OF AUBURN: 2009 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES
f T'T ~►T fl ~ ~
* MORE THAN YOU IMAGINED
140
CITY OF AUBURN: 2009 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES
AGENCYFUNDS
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.
141
CITY OF AUBURN: 2009 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES
CITY OF AUBURN, WASHINGTON
STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
AGENCY FUND
FOR THE FISCAL YEAR ENDED DECEMBER 31, 2009
BALANCE BALANCE
1/1/2009 ADDITIONS DEDUCTIONS 12/3112009
ASSETS:
CASH AND CASH EQUIVALENTS $ 1,566,226 $ 3,710,390 $ 3,596,776 $ 1,679,840
OTHER CURRENT ASSETS 5,321 151,138 153,838 2,621
DUE FROM OTHER GOVERNMENTAL UNITS 2,613 - 2,613 -
TOTALASSETS $ 1,574,160 $ 3,861.528 $ 3753,227 $ 1,682,461
LIABILITIES:
DUE TO OTHER GOVERNMENTAL UNITS $ 1,574,160 $ 5,785,499 $ 5,677,198 $ 1,682,461
TOTAL LIABILITIES $ 1,574,160 $ 5,785,499 $ 5,677,198 $ 1,682,461
142
CITY OF AUBURN: 2409 CAFR STATISTICAL SECTION
City of Auburn
STATISTICAL SECTION
December 31. 2009
Financial Trends Information
Financial trends schedules are intended to provide users with information to assist
them in
understanding and assessing how the City's financial position has changed over time.
Schedule 1 Net assets by component
144
Schedule 2 Changes in net assets
....145
Schedule 3 Fund balances, government funds
146
Schedule 4 Changes in fund balances, government funds
147
Schedule 5 Tax revenues by source, government funds
148
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
149
Schedule 7 Property tax data
....150
Schedule 8 Property tax levies and collections
152
Schedule 9 Principal taxpayers-property taxes
153
Schedule 10 Retail tax collections by sector
154
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
....155
Schedule 12 Computation of legal debt margin
156
Schedule 13 Legal debt margin ratios
156
Schedule 14 Computation of net direct and estimated overlapping debt
157
Schedule 15 Ratio of net general bonded debt to assessed value
158
Schedule 16 Pledged revenue bond coverages
....159
Demographic and Economic Information
These schedules offer demographic and economic information to assist users in under
standing
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 governmen
tal units.
Schedule 17 Population, income and housing trends
....160
Schedule 18 Major employers
161
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
162
Schedule 20 Operating indicators by department
163
Schedule 21 Capital indicators by department
164
143
CITY OF AUBURN: 2009 CAFR STATISTICAL SECTION
Governmental activities:
Invested in capital assets, net of related debt $ 167,057,262
Restricted 23,384,709
Unresticted 29,547,005
Total governmental activities net assets $ 219,988,976
Eusiness-type activities:
Invested in capital assets, net of related debt $ 104,513,351
Restricted 1.919.515
Unreshicted 29 489,320
Total business-type activities net assets $ 135,922,186
Primary government:
Invested in capital assets, net of related debt $ 271,570,613
Restricted 25,304,224
Unreshicted 59,036,325
Total primary government net assets $ 355,911,162
(1) Information available for 2003-2009 only due to nevi accounting and
reporting standards beginning in 2003 with GASB Statement No. 34.
Source: City of Auburn, Finance Department
CITY OF AUBURN, WASHINGTON
SCHEDULE1
NET ASSETS BY COMPONENTS
LAST SEVEN FISCAL YEARS(')
(ACCRUAL BASIS OF ACCOUNTING)
$ 171,921,373
25,615,116
28490,736
$ 226,027,225
$ 106,783,634
1,969,809
31,849,110
$ 140,602,553
$ 278,705,007
27,584,925
60,339,846
$ 366,629,778
194,121,232
23,4 42,309
2Cr25,M6
$ 241,658,877
$ 115,137,273
2,238,611
32,513,576
$ 149,889,460
$ 309,258,505
25,680,920
56,608,912
$ 391,548,337
200,814,063 $ 212,611,232
26,839,342 24,519,024
24,148,157 26,774,107
$ 251,801,562 $ 263,904,363
$ 125,265,152 $ 130,515,163
6,987,485 1,227,395
25,693 517 40,655,261
$ 157,946,154 $ 172,397,819
$ 326,079 215 $ 343,126,395
33,826 827 25,746,419
49,841674 67429,368
$ 409,747,716 $ 436,302,182
$ 303,564,348
28,965,599
25,955,501
$ 358,485,448
$ 144,626,496
933,914
35,859 489
$ 181,419,899
$ 448,190,844
29,899 513
61,814.99C
$ 539,905,347
$ 314,691,982
12, 741 ,566
43,754:379
$ 371,188,427
$ 150,621,492
2,071,219
29,546,169
$ 182,238,880
$ 465,313,474
14,812,785
73,301,048
$ 553,427,307
144
CITY OF AUBURN: 2409 CAFR STATISTICAL SECTION
CITY OF AUBURN, WASHINGTON
SCHEDULE2
CHANGES IN NET ASSETS
LAST SEVEN FISCAL YEARS f'1
(ACCRUAL BASIS OF ACCOUNTING)
Expenses
Governmental activities
General government
$ 5,968367
$ 4,235,953
$ 5,284440 $
6462578
$ 7.196492
$ 8,000,715
$ 7,567,085
Public safety
23,045,701
26,076,348
28,048,087
29,804,864
33,396,630
28,217,844
25,675,063
Transportation
3,071,195
8,239,795
7,956,286
7619268
8077.154
12,974,861
11,471,167
Physical environment
1,845,059
2415,047
2,209,652
2418,543
3,269,334
3,096,696
3,327,836
Culture and recreation
5,108,683
4,949,050
5,324,543
5,729431
6,539,281
6,271,924
7561,569
Economic environment
1,379,552
2,866,473
1,919,780
1,848,988
2,400,031
2,608,980
3,000,257
Health and human services
639678
597,423
602,726
763,156
416456
776,224
527,029
Interest on long-term debt
322,653
362,051
188,945
203,180
163,916
226,651
408,471
Total governmental activities expenses
41,380,888
49,742,140
51,534,459
54,850,008
61,459,294
62,173,895
59,538,478
Business-type activities:
Water
6,868,291
6,913,709
6,962,997
7,647,935
7,873,191
8,565,231
8,970,215
Sewer
9 .949,763
11,207,786
12,044,330
1 1,878,252
13,974,607
14,479,299
16 569,297
Storrs drainage
2,955,179
3,169,350
3,354,899
3,852,335
4,224,881
5,226,823
7,275,072
Solid waste
8,553,801
8,645,372
9,121,727
9936222
10,368,901
10,781,426
11,019,606
Golf course
874,809
973,110
1,032,733
1,020,070
1,576,126
1,958,703
1,909,758
Non-major business-type activities
1,730 969
1,624,365
1,593,944
1.618.285
1,735,118
1,720,603
1,666,754
Total business-type activities expenses
30,932,812
32,533,692
34,110,630
35,953,099
39752,824
42,732,085
47410,702
Total primary government expenses
$ 72,313,700
$ 82,275,832
$ 85,645,089 $ 90,803,107
$ 101,212,118
$ 104,905,980
$ 106,949,180
Program revenues
Governmental activities:
Charges for services
General Government
$ 359398
$ 561,013
$ 663,309 $
820,585
$ 1,126,258
$ 2,316,125
$ 814,095
Public Safety
1,354,900
1,767,687
2,109,284
2,514,867
3,100,973
2,674,777
2,854,530
Transportation
570,100
447,036
1,052,110
631,340
1,930,504
1,272,751
1,587,850
Physical Environment
237,772
365,681
244,766
436,503
576,539
257,780
147,996
Culture and Recreation
597,300
654,417
726,753
881,318
1,245,122
917,544
1,048,390
Economic Environment
2,088,948
3,097,230
3,169,262
2,590,763
2,070,534
1,638,579
1,654,692
Health and human services
989
Total charges for services
5,208,418
6,893,064
7,965,484
7,875,376
10,049,930
9,077,556
8,108,542
Operating grants and contributions
1,959 919
2,178,951
2,445 913
2,714,324
2,923 968
2,567,788
3,001,401
Capital grants and contributions
12,336,814
5,192,593
11,162,241
5,174,350
9,213,115
94,905,563
12,806,049
Total governmental activities program revenues
19,505,151
14,264,608
21 573 638
15,764050
22,187013
106,550,907
23,915,992
Business-type activities:
Charges for services
31,233,491
31,747,066
32,658,440
36,226,324
38.784.127
39,883,386
42,338,079
Operating grants and contributions
33,384
33,384
54,999
47,961
43,263
55,024
87,454
Capital grants and contributions
61985,742
4,351,278
7,857,856
3.988.202
12.479.500
10,670,660
1 .992,259
Total business-type activities program revenues
38,252,617
36,131,728
40571,295
40,262,487
51,306,890
50,609,070
44,417,792
Total primary government program revenues
57,757,768
50,396,336
62,144,933
56026537
73493903
157,159,977
68,333,784
Net (expense)/revenue
Governmental activities
(21,875,787)
(35477512)
(23;960821)
(33,085958}
(39,272,28 1)
44,177,012
(35,622,486)
Busines3-type activities
7,819,805
3,598,1036
6460,665
4,309,388
11,554,066
98a
(2,992,910)
Total primary government net expense
$ (14,555,932)
$ (31,879,496)
$ (23,500,156) L
J2776,5701
$ (27,718,215)
$ 52,253,997
$ (38,615,396)
General revenues and other changes in net assets
Governmental activities:
Taxes:
Propertytaxes
$ 12,440,724
$ 12,598,954
$ 13464,390 $
15,186,456
$ 16,164,073
$ 10,804,825
$ 13,362,672
Retail sales and use tax
13,970,383
15,429,527
16,333,169
17,784,374
18,958 484
17,620,661
14,727,496
Intertund utilitytaxes
1,696389
1,714,102
1,792,136
1,983,652
2095901
2,507,213
3,437,526
Utility taxes
4,225,725
5,012,010
5,349,713
5,893,041
6,073,429
8,075,355
9,071,485
Excise taxes
3,401,498
3,384,515
4,633,037
4 568 549
3,862,692
3,477,517
2,310,076
Othertaxes
1,699,275
1,678,485
1796,224
1,859,428
2,005,836
2,949,430
4,607,584
Investment earnings
769,239
708,259
1,465,102
2,454,694
2,993,174
1,589,837
570,798
Miscellaneous
96,168
192,469
564,416
69,037
(406,847)
2,751,495
67,223
Transfers
(1,225,054)
627,000
194,286
(570,588)
(371,660)
427,740
170,605
Total governmental activities
37,074,347
41,345,321
45,592,473
49,228,643
51,375,082
50,204,073
48,325,465
Business-type activities:
Investment earnings
306,862
421,803
895,870
1,574,444
2,098417
1,242,363
312,618
Miscellaneous
545,087
1,287,528
2,124,658
1,602,274
427522
330,472
3,669,878
Transfers
1,225,054
(627,0001
(194,286)
570588
371,663
1427,7417)
(170,605.)
Total business-hpe activities:
2,077,908
1,082,881
2826,22
3747,306
2837,599
1,145,095
3,811891
Total primary government
$ 39,151,350
$ 42,427,652
$ 48,418,715 $ 52,975,949
1 54,272,681
$ 51,349,168
$ 52,137,356
Change in net assets
Governmental actn,tties
$ 15,196,610
$ 5867789
$ 15,631,652 $
10,142,685
$ 12,102,801
$ 94,581,085
$ 12,702,179
Business-type activities
9,396,808
4,680,367
9 286 907
8056 694
14451 665
9,022,080
818,981
Total primary government
$ 24,595,418
$ 10,548,156
$ 24,918,559 $
18,199,379
$ 26,554,466
$ 103,603,165
$ 13,521,960
(1) Information available for 2003-2009 only due to new
accounting and
reporting standards beginning in 2003 with GASB St
atement N o. 34.
Source: City of Aubum, Finance Department
145
CITY OF AUBURN: 2009 CAFR STATISTICAL SECTION
CITY OF AUBURN, WASHINGTON
SCHEDULE3
FUND BALANCES. GOVERNMENTAL FUNDS
LAST SEVEN FISCAL YEARS(')
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
:eneral Fund
o ,
IJnresen!ed $ I J,4vi ,495 $ i i i 12 200 $ 1t" ~ z~ ~ $ 14,44, 14 41 i, 7 210 $ 13 i 1 1,0`11 $ 13 , 7,g51
Total general fund $ 18,49 ads $ 20,702,250 $ 11,.H8.8215 $ 14,441 'r28 $ 14,462.720 $ 13,071,091 $ 13,237,851
All other governmental funds
Reserved $
1,133,206
$ 1,270,769
$ 1,375,591
$ 1,376,798 $
1,501,033 $
1,507,565
$ 1,538,038
Unreserved, reported in:
Special revenue funds
9,776,846
10,612,069
8,967,039
10,738,431
13,124,661
14,463,370
15,184,058
Capital projects funds
13,930,030
13,852,020
13,111,273
14,727,423
9,873,331
12,990,032
10,422,360
Permanent funds
233.800
222.020
232.832
188.524
170.983
144.396
153.503
$ 25,073,852 $ 25,956,878 $ 23,686,735 $ 27,031,176 $ 24,670.008 $ 29,105,363 $ 27,297,959
(1) Information available for 2003-2009 only due to new accounting and
reporting standards beginning 2003 with GASB Statement No. 34.
Source: City of Auburn, Finance Department
146
CITY OF AUBURN: 2009 CAFR STATISTICAL SECTION
CITY 0FAUBURN. WASHINGTON
SCHEDULE4
CHANGES IN FUND BALANCES. GOVERNMEN'
LAST SEVEN FISCAL YEARS f'1
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
Revenues
Taxes $
35,734,592
$ 38,258,
799 $
41,467,
853 $
44,867,
161
$ 46,721,651 $
43,781,
530 $
42,514
,006
Licenses and permits
1,255,582
2,248,
576
2,227,
963
1,683,
320
1,606,950
1,110,
722
1,326
875
Intergovernmental
6,756,672
4,697,
501
6,826,
222
6,831,
240
5,766,484
8,369,
888
9,616
,067
Charges for services
2,924,962
3,393,
178
3,939,
610
3,659,
773
5,017,224
3,784,
544
3,473
,199
Fines and forfeits
836,244
845,
721
777,
241
1,054
201
2,155,120
2,059,
771
1,911
,034
Special assessments
177,588
127,
976
153,
627
75.
574
52,291
57,
402
107
,597
Investment earnings
300,213
336,
442
1,175,
258
1477
368
2,456,291
1363,
375
484
,696
Miscellaneous
1,102089
2,452,
468
1247,
252
1,865
079
877,473
1,296,
349
1,142
428
Total revenues
49,087,942
52,360,
661
57,815,
026
61,513,
716
64,653484
61,823,
581
60,575
902
Expenditures
General government
5,737,882
5,472,
630
5.300.
663
6,062,
037
6,834,084
7,719,
205
7,864
410
Public safety
22,658,127
25,870,
873
27,169,
657
29,148,
278
33568,753
26,023,
912
25,762
,116
Transportation
4,327,863
5,152,
344
10,337,
587
9,403,
147
7,385,929
8,910,
967
9,850
,579
Physical environment
1,911,616
2,304,
248
2,191,
796
2,435,
201
3,352,466
3,490,
636
3,192
,089
Economic environment
1,316,782
2,796,
902
1,877,
675
1,928,
978
2,142,282
2,530,
827
3,028
,684
Health and human services
639,678
597,
423
602,
726
763,
156
416,456
776,
224
527
,029
Culture and recreation
4,453,173
4,806,
217
4,815,
643
5,016,
554
6,571,275
6,296,
743
6,622
,546
Capital outlaya)
3,357,827
12,100,
966
507,
484
3,822,
895
7,346,316
4,778,
334
30,338
,508
Debt service:
Principal
1,162,465
1,018,
355
10,582,
246
420,
631
435,093
456,
655
479
,661
Interest! other
333,439
248,
005
315,
960
247,
551
203,266
264,
997
296
,241
Total expenditures
45,898,852
60,367,
963
63,709,437
59,248,428
68,255,920
61,248,
500
87,961
,863
Excess of revenues
over (under) expenditures 3,189,090 (8,007,302) (5,894,411)
2,265,288
(3,602,436)
575,081
(27,385,961)
Other financing sources {used
Transfers in 5,458,804 3,946,424 9,753,294
8,873,200
6,103,144
7,386,082
6,994,306
Transfers out (6,561,204) (3,319,424) (11,703,804)
(9,554,816)
(5,542,988)
(7,993,842)
(6,997,801)
Capital leases - 10,356,006 -
-
695,504
17,728
24,549,186
Insurance Recoveries
114,607
Issuance of long-term debt - - -
142,313
-
360,606
957,278
Sales of capital assets 26,930 119,053 811,353
127.959
2,698,677
127,741
Total otherfinancing sources (uses) (1,075470) 11,096,053 (1,139,157)
(411344)
1,255,660
2468,645
25,745,317
Net change in fund balances $ 2,113,620 $ 3,088,751 $ (7,033,568) $
1,853,944 $
(2,346,776) $
3,043,726
$ (1,640,644)
Debt service as a percentage of noncapital
expenditures 152% 2.62% 17.24%
1.21%
1.05%
1.28%
1.35%
(1) Information available for 2003-2009 only due to new accounting and
reporting standards beginning 2003 with GASB Statement No. 34.
(2) Capital outlay of $4,778,334 for 2009 is for Governmental Funds only. Proprietary Funds captial outlaywas
$5,518,270 for total capital outlay of $10,296,664 as reported on the Reconciliation of the Statement of
Revenues, Expenditures, and Changes in Fund Balances of Governmental Fundsto the Statememt of Activities.
Source: City of Auburn, Finance Department
147
CITY OF AUBURN: 2009 CAFR STATISTICAL SECTION
CITY OF AUBURN, WASHINGTON
SCHEDULES
TAX REVENUES BY SOURCE, GOVERNMENT FUNDS
LAST TEN FISCAL YEARS
Year
Property
& Use
Utility
Utility
Excise
Other
Total
2000
10,209,181
13,376,907
972,327
4,704,155
850,570
78,265
30,191,405
2001
11,016,263
13,467,184
1,016,366
6,143,060
1,172,417
44,660
32,859,950
2002
11,673,939
13,568,518
1,078,845
4,193,983
829,537
52,839
31,397,661
2003
12,396,502
13,970,383
1,696,389
4,225,725
3,401,498
44,095
35,734,592
2004
12,680,361
15,429,527
1,714,102
5,012,010
3,384,515
38,284
38,258,799
2005
13,319,740
16,333,169
1,792,136
5,349,713
4,633,037
40,058
41,467,853
2006
14,582,829
17,784,374
1,983,652
5,893,041
4,568,549
54,716
44,867,161
2007
15,666,016
18,958,484
2,095,901
6,073,429
3,862,692
65,129
46,721,651
2008
12,040,124
17,620,661
2,507,213
8,075,355
3,477,517
60,660
43,781,530
2009
12,914,943
14,727,496
3,437,526
9,071,485
2,310,076
52,480
42,514,006
Change
2000-2009
26.5%
10.1%
253.5%
92.8%
171.6%
-32.9%
40.8%
Fiscal years 2000-2002 include tax revenues collected in the general and special revenue funds.
Fiscal years 2003-2009 include all governmental funds.
Source: City of Auburn, Finance Department
$50,000
$45,000
$40,000
$35,000
c $30,000
$25,000
0 $20,000
$15,000
$10,000
$5,000
$0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
148
FIGURE 5: TAX REVENUES BY SOURCE
2000 - 2009
CITY OF AUBURN: 2009 CAFR STATISTICAL SECTION
CITY OF AUBURN, WASHINGTON
SCHEDULE6
ASSESSED VALUE BY TYPE
LAST TEN FISCAL YEARS
(AMOUNTS EXPRESSED IN THOUSANDS)
Fiscal
Year
State
Property
and Other
Personal
Property
Land and
Building
Total
Assessed
Value
Total
Direct
Rate
2000
82,105
746,579
2,345,551
3,174,235
3.00
2001
104,117
751,709
2,510,519
3,366,345
2.99
2002
115,189
800,159
3,104,524
4,019,872
2.93
2003
140,531
787,022
3,344,271
4,271,824
2.93
2004
150,458
742,255
3,599,466
4,492,179
2.87
2005
137,611
704,061
3,834,629
4,676,301
2.88
2006
116,895
623,298
4,359,276
5,099,469
2.87
2007
101,419
607,875
5,055,734
5,765,028
2.73
2008
112,101
640,004
5,804,585
6,556,690
1.48
2009
121.918
764.857
7.837.089
8.723.864 ("1
1.49
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
FIGURE 6: ASSESSED VALUE BY TYPE
2000 - 2009
$9,000,000
$8,000,000
$7,000,000
$6,000,000
$5,000,000
$4,000,000 0State property
$3,000,000 0Personal property
$2,000,000 ■Land and building
$1,000,000
$0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
149
CITY OF AUBURN: 2009 CAFR STATISTICAL SECTION
CITY OF AUBURN, WASHINGTON
SCHEDULE7
PROPERTY TAX DATA
LAST TEN FISCAL YEARS
Page 1 of 2
Assessed and estimated actual values (1)
Estimated and actual value (in thousands)
$ 3.174.235 $
3,366.345 $
4,019.872 $
4,271,824
Assessed value (in thousands)
$ 3,174.235 $
3,366,345 $
4.019.872 $
4,271.824
Ratio of assessed to actual
100%
100%
100%
100%
Property tax rates (l)
Direct regular and special
General fund $ 3.00157 $ 2.98932 $ 2.93353 $ 2.92857
Debt service funds - - - -
Subtotal $ 3.00157 $ 2.98932 $ 2.93353 $ 2.92857
Overlapping regular and specials')
Auburn School District $ 5.80795 $ 5.47999 $
King County 1.68951 1.55218
State of Washington 3.30278 3.14502
Port of Seattle 0.21585 0.19029
Emergency Medical Services 0.27299 0.24624
King County Library District 0.58651 0.55737
Valley Regional Fire Authority - -
King County Flood Zone -
King County Ferry District - -
Subtotal 11.87559 11.17109
Total direct and overlapping $ 14.87716 $ 14.16041 $
Sources:
(1) King County and Pierce County Deparments of Assessments: real and personal property
has been assessed at 100% of the estimated actual value.
(2) The decrease in property tax levy to $1.48 is due to the incorporation of the new Valley
Regional Fire Authority effective 1/1107. The VRFA will assess its own property tax levy
in 2008, partially offsetting what was previously levied by the City.
10.88242 10.64954
FIGURE 7A: TEN YEARS CITY PROPERTY TAX RATES
2000 - 2009
$3.50
0
0
m $3.00 11
v
d
N
~ $2.50
41
H
4
o $2.00
C
0
a $1.50
$1.00
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
(2)
5.47810 $
5.35720
1.44949
1.34948
2.98946
2.89680
0.18956
0.25895
0.25000
0.24143
0.52581
0.54568
150
CITY OF AUBURN: 2009 CAFR STATISTICAL SECTION
Page 2of2
2004 2005 2006 2007 2008(2) 2009
$ 4,492.179 $ 4,676,301 $ 5,099,469 $ 5,765,028 $ 6,556,690 $ 8.723,864
$ 4,492,179 $ 4,676,301 $ 5,099,469 $ 5,765,028 $ 6,556,690 $ 8,723,864
100% 100% 100% 100% 100% 100%
$ 2.87319 $ 2.88000 $ 2.86520 $ 2.73076 $ 1.48385 $ 1.48678
$ 2.87319 $ 2.88000 $ 2.86520 $ 2.73076 $ 1.48385 $ 1.48678
$ 5.34914 $
5.37195 $
5.37383 $
4.94903 $
4.40970 $
4.37709
1.43146
1.38229
1.32869
1.28956
1.20770
1.09772
2.75678
2.68951
2.49787
2.32535
2.13233
1.96268
0.25402
0.25321
0.23330
0.23158
0.22359
0.19700
0.23717
0.23182
0.21982
0.20621
0.30000
0.27404
0.53653
0.53255
0.53424
0.50027
0.45336
0.41736
-
-
-
-
1.00000
1.10995
-
-
-
0.10000
0.91230
-
-
-
-
0.05500
0.05018
10.56510
10.46133
10.18775
9.50200
9.88168
10.39832
$ 13.43829 $
13.34133 $
13.05295 $
12.23276 $
11.36553 $
11.88510
FIGURE 713: PROPERTY TAX RATES
Last Ten Fiscal Years
$14.00
$12.00
a
N $10.00
D
o
~ F $8.00
0 a $6.00
is $4.00
$2.00
$0.00
District
■
King County Flood Zone
0
Valley Regional Fire
Authority
■
King County Library
District
0
Emergency Medical
Services
■
Port of Seattle
0 State of Washington
0 King County
■ Auburn School District
151
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
(2)
CITY OF AUBURN: 2009 CAM STATISTICAL SECTION
CITY OF AUBURN, WASHINGTON
SCHEDULE8
PROPERTY TAX LEVIES AND COLLECTIONS
LAST TEN FISCAL YEARS
Total Tax Collected Within the Collections
Levy for Fiscal Year of the Levy in Subsequent Total Collections to Date Current Year
King County
2000
$10,105,107
$10,022.441
99
.2%
$82,666
$10,105,107
100.
0%
$0
2001
11,134,267
10,814,089
97
.1%
319,335
11,133,424
100.
0%
843
2002
11,518,383
11,261,600
97
.8%
256,107
11,517,707
100.
0%
676
2003
12.094.516
11,765,654
97
.3%
315,761
12,081,415
99.
9%
13,101
2004
12,212,162
12,031,253
98
.5%
176,081
12,207,334
100.
0%
4,828
2005
12,639,356
12,393,241
98
.1%
239.603
12,632,844
99.
9%
6,512
2006
13,400,344
13,164,248
98
.2%
227,230
13,391,478
99.
9%
8,866
2007
13,846,688
13,605,301
98
.3%
210,145
13.815,446
99.
8%
31,242
2008
9,554,865
9,406,398
98
.4%
93,609
9,500,007
99.
4%
54,858
2009
11,660,279
11,390,684
97
.7%
-
11,390.684
97.
7%
269.595
$390,521
Pierce County
2000
$60,601
$59,086
97
.5%
$1.515
$60.601
100.
0%
$0
2001
114,323
105,707
92
.5%
8,616
114,323
100.
0%
-
2002
267,001
258,385
96
.8%
8,616
267,001
100.
0%
2003
435,886
423,834
97
.2%
12,052
435,886
100.
0%
2004
579,828
566,356
97
.7%
13.472
579,828
100.
0%
2005
783,135
769,223
98
.2%
13,912
783,135
100.
0%
-
2006
1,242,039
1,220,642
98
.3%
20.126
1.240,768
99.
9%
1,271
2007
1,851,622
1,816,706
98
.1%
32,849
1,849,555
99.
9%
2,067
2008
1.226,883
1,177,665
96
.0%
37.594
1.215,259
99.
1%
11,624
2009
1,265,103
1,223,668
96
.7%
-
1,223,668
96.
7%
41,435
$
56,397
Total current levy balance
$446.919
Source:
King County Finance and Business Operations
Divi
sion
Pierce County Budget and
Finance Department
FIGURE 8: TEN YEARS COLLECTION OF LEVIED PROPERTY TAXES
Last Ten Fiscal Years
-®-Collection
percentage
100.0% within the fiscal
99.5% year of the levy
99.0%
98.5% --W-Total collection
98.0%
97 5% percentage
97.0%
96.5%
96.0%
95.5%
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
152
CITY OF AUBURN: 2409 CAFR STATISTICAL SECTION
CITY OF AUBURN, WASHINGTON
SCHEDULE9a
PRINCIPAL TAXPAYERS-PROPERTY TAXES
CURRENT YEAR AND NINE YEARS AGO
2009 2000
Percentage Percentage
of Total City of Total City
Assessed Taxable Assessed Taxable
Taxpayer Value Rank Assessed Value Value Rank Assessed Value
Boeing Company
$ 491,218,
466
1
5.63%
$ 701,571,
254
1
22.10%
GlimcherRealty Trust (Supermall)
119,546,
742
2
1.37%
131,764,
000
2
4.15%
Safeway
106,729,
941
3
1.22%
-
EPropertyTax Inc.
73,718,
900
4
0.85%
-
Universal Health
59,912,
292
5
0.69%
26,936,
555
6
0.85%
Puget Sound Energy
59,115,
114
6
0.68%
49,114,
535
3
1.55%
Belara Communities LLC
51,114,
300
7
0.59%
Muckleshoot Indian Tribe
50,197,
600
8
0.58%
-
UPS Supply Chain Solutions
36,083,
797
9
0.41%
-
Wal-Mart Store
25,257,
711
10
0.29%
La Terra Limited Partnership
-
44,379,
800
4
1.40%
Quadrant Corporation
32,853,
900
5
1.04%
Fritz Companies
25,519,
209
7
0.80%
U.S. West Communications
-
24,562,
959
8
037%
Roundup Co. (Fred Meyer)
-
12,449,
446
9
039%
West Valley 29 Partners
-
11,856,
200
10
037%
Source: King County and Pierce County Departments of Assessments
Total assessed value for 2009 is $8,723,864,000
Total assessed value for 2000 is $3,174,235,000
FIGURE 9a-1: TOP TAXPAYER ASSESSED VALUE AS A
PERCENTAGE OF TOTAL ASSESSED VALUE
Current Year and Nine Years Ago
40%
30%
20%
10%
0%
J1C1C1 21-11-l q
FIGURE 9a-2: TOP 10 TAXPAYERS ASSESSED VALUE AS
A PERCENTAGE OF TOTAL ASSESSED VALUE
Current Year and Nine Years Ago
40%
30%
20%
10%
0%
~uuu Ruud
CITY OF AUBURN, WASHINGTON
SCHEDULE 9b
PRINCIPAL TAXPAYERS-SALES TAXES
CURRENT YEAR AND NINE YEARS AGO
2009
2000
I
Percentage
Percentage
Sales
of Total City
Sales
of Total City
Tax
Sales Taxes
Tax
Sales Taxes
Received
Sector (1)
Rank
Received
Received Sector If Rank
Received
$ 313,722 Automotive
1
2G;
309,568
Distribution
2
26%
NOT AVAILABLE
243,202
Automotive
3
2.0%
229.605
General retail
4
1.9%
224,637
Automotive
5
1.9%
220,993
General retail
6
1.9%
189.806
General retail
7
1.6%
180,350
Automotive
8
1.5%
179,370
General retail
9
1.5%
174,129
Automotive
10
1.5%
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
153
CITY OF AUBURN: 2009 CAFR STATISTICAL SECTION
CITY OF AU BURN, WASHINGTON
SCHEDULE 10
RETAIL TAX COLLECTIONS BY SECTOR
LAST TEN FISCAL YEARS
(AMOUNTS EXPRESSED IN THOUSANDS)
RETAIL TRADE SECTOR
Automotivelgas $
2,755 $
2,607 $
2,827 $
2,862 $
2,893 $
3,326 $
3,428 $
3,643 $
3,255 $
2,559
Furniture
336
306
276
318
438
218
263
268
241
220
Electronics & appliances
-
-
-
-
-
451
288
262
242
132
Building materials
202
314
371
412
479
488
594
615
521
358
Food stores
542
538
526
401
395
358
346
378
360
352
Health & personal care
-
-
-
-
-
120
130
143
152
150
Apparel
600
624
646
649
765
836
874
899
873
781
General merchandise
373
468
646
909
990
970
941
974
872
833
Food/Drink
542
566
560
596
651
-
-
-
-
-
Misc retail trade
1,205
1,228
1,017
864
905
724
939
1,334
1,234
755
$
6,555 $
6,651 $
6869 $
7,011 $
7,515 $
7,491 $
7,803 $
8,516 $
7,750 $
6,140
SERVICE SECTOR
Information $
- $ - $ - $ - $ - $ 566 $
567 $
531 $
489 $
457
Finance & insurance
- - - - - 86
84
85
85
83
Real estate, rental, leasaing
- - - - - 294
311
330
394
304
Professional, scientific, technical
- - - - - 119
116
162
146
200
Administrative, supply & remediation Services
- - - - - 197
195
301
261
261
Educational
- - - - - 81
81
87
91
42
Healthcare & social serivices
- - - - - 45
33
Be
98
61
Arts & entertainment
- - - - - 164
126
172
171
147
Accomodation &food service
- - - - - 764
833
870
915
827
Other services
477
492
502
457
485
$
- $ - $ - $ - $ - $ 2,673 $
2,779 $
3,128 $
3,107 $
2,867
OTHER SECTORS:
Services' $
1,248 $
1,162 $
1,154 $
1,182 $
1,152 $
- $
- $
- $
- $
-
Construction
1,374
1,472
1,448
1,514
2,462
2,608
2,453
2,240
1,647
1,368
Manufacturing
288
368
607
882
793
414
486
625
643
383
Transportation
433
459
426
466
401
31
26
22
76
31
Wholesaling
2,166
2,184
1,676
1,674
1,795
2,313
2,571
2,943
2,366
1,673
Banking
70
89
110
98
127
-
-
-
-
-
Other business
94
102
126
121
108
73
72
143
72
47
Subtotal - other sectors $
-,673 T
'G.30 'F
3,547 T
,871 $
6 779 T
4.'.39 $
5,897 T
5,973 $
4,744 T
2,902
GRAND TOTAL $
12,228 $
12,487 $
12,416 $
12,882 $
14,294 $
15,603 $
16,189 $
17,617 $
15,601 $
11,909
OVERLAPPING SALES TAX RATES
Basic sales tax rates
City of Auburn
0.84%
0.84%
6.84%
0.84%
6.84%
0.84%
6.84%
0.84%
6.84%
0.84%
Washington State
6.50%
6.50%
6.50%
6.50%
6.50%
6.50%
6.50%
6.50%
6.50%
6.50%
King County
0.16%
0.16%
0.16%
0.16%
0.16%
0.16%
0.16%
0.26%
0.36%
0.36%
Regional Transit Authonty
040%
040%
040%
040%
040%
040%
0.40%
040%
0.40%
0.90%
Metro
0.60'%
0.80'vo
0.80%
0.80%
0.80'/1"
0.80%
0.bm",
0.80%
0.8n%
0.80%
Criminal Justice
0.1056
0.10?/
0.10%
0.10'd'a
0.101
U 10':6
0.10%
0.10°/6
0.1056
0.10':6
Total basic sales tax rate IL
8.60%
8.80%
8.80%
8.80%
8.80%
8.80%
8.80%
8.90%
9.00%
9.50
Special sales tax rates
Restaurants-for stadium funding 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50%
Motor vehicles-for multimodal transportation 0.00% 0.00% 0.00% 0.30% 0.30% 0.30% 0.30% 0.30% 0.30% 0.30%
(1) Starting in March of 2005, the State of Washington switched from classifiying retail sales using the Standard Industrial Classification (SIC) code to the North American
Industry Classification System (NAICS). As a result, specific trend comparisons of 2005 results to prior year may not be meaningful.
Source: City of Auburn Finance department and State of Washington
FIGURE 10: RETAIL TAX COLLECTIONS
CITY OF AUBURN: 2000 -2009
$20,000
$18,000
■ Other
$16,000
❑Wholesaling
$14,000
•Man ufacturi ng
a $12,000
O Contracting
$10
000
,
O Servi ce s
$8,000
■Other Retail
$6,000
$4,000
$2,000
$0
(]Automotive
208
0 2001 2002 2003 2004 2005 2006 2007 2008 2009
154
CITY OF AUBURN: 2009 CAFR STATISTICAL SECTION
CITY OF AUBURN, WASHINGTON
SCHEDULE11
RATIO OF OUTSTANDING DEBT BY TYPE
LAST TEN FISCAL YEARS
Fiscal
Obligation
Assessment
Capital
Revenue
Trust Fund
Year
Bonds
Bonds
Leases
Bonds
Loans
2000
$7,956,600
$1,013,904
$0
$11,990
,000
$0
2001
7,700,000
738,904
-
11,110
,000
7,367
,157
2002
7,402,000
548,904
1,367
,108
10,190
,000
7,826
,039
2003
7,088,000
347,904
689
,643
9,230
,000
7,428
,695
2004
6,754,000
228,354
10,322
,787
8,220
,000
7,066
,042
2005
6,478,000
132,354
-
7,020
,000
8,679
,509
2006
11,210,000
36,827
-
5,905
,000
9,853
,410
2007
10,650,000
36,827
663
,553
4,730
,000
10,149
,419
2008
10,053,000
36,827
646
,799
3,495
,000
9,730
,324
2009
36.160.850
36.827
25.193
.600
2.200
.000
10.014
.943
Source: City of Auburn, Finance Department
(1) Personal income data provided by Hebert Research for 2000, 2004 and 2005 only, other years are city estimate
Total Percentage
Primary of Personal Per
Government Income`') Capita
$;20,JC0,504 :~.05ro 1, 4'J5.53
26, 916, 061 1,85% 611.94
27,334,051 3.84% 611.71
24,784,242 3.27% 546,45
32,591,183 4.16! 70643
22,309,863 2.68! 469.98
27,005,237 3.04! 551.63
26,229,799 2.77% 519.71
23,961,950 1.82% 357.61
73,606,220 4,11% 1,090.70
FIGURE 11: PER CAPITA DEBT
Last Ten Fiscal Years
$1,200
$900
$600
$300
$0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
155
CITY OF AUBURN: 2009 CAFR STATISTICAL SECTION
CITY OF AUBURN, WASHINGTON
SCHEDULE12
COMPUTATION OF LEGAL DEBT MARGIN
AS OF DECEMBER 31, 2009
General Capacity Special Purpose Capacity
Parks and Utility Total
Councilmanic Excess Levy Open Spaces Purpose Capacity
December 31, 2009 - Total Assessed Value:
7,702,255,337
2.5% of assessed value
$ -
$ 192,556,383
$ 192,556,383
$ 192,556,383 $ 577,669,150
1.5% of assessed value
115,533,830
(115,533,830)
-
- -
Statutory debt limit
115,533,830
77,022,553
192,556,383
192,556,383 577,669,150
Debt outstanding
62,671,433
-
-
- 62,671,433
Less redemption fund assets:
Available to pay principal
3,777,515
3,777,515
Plus liabilities:
Payables
1,725,933
1,725,933
Vacation/sick leave
2,013,836
2,013,836
Net debt outstanding
62,633,687
-
-
- 62,633,687
Remaining debt capacity
$ 52,900,143
$ 77,022,553
$ 192,556,383
$ 192,556,383 $ 515,035,463
CITY OF AUBURN, WASHINGTON
SCHEDULE13
LEGAL DEBT MARGIN RATIOS
LAST TEN FISCAL YEARS
(EXPRESSED IN THOUSANDS)
Debt Limit $ 252,476 $ 252.476 $ 294,669 $ 336.913 $ 350,782 $ 35M82 $ 432.377 $ 489.472 $ 653,979 $ 577,669
Total net debt
applicable to limit
Legal debt margin
Total net debt
applicable to the limit
as a percentage of debt limit
4,866 (4,871) (1,610) 3,576 17,055 17,055 11,352 10,757 10,771 62,671
1.93% -1.93% -0.55% 1.06% 4.86% 4.86% 2.63% 2.20% 1.65%
10.85%
156
CITY OF AUBURN: 2009 CAFR STATISTICAL SECTION
CITY OF AUBURN, WASHINGTON
SCHEDULE 14
COMPUTATION OF NET DIRECT AND ESTIMATED OVERLAPPING DEBT
AS OF DECEMBER 31. 2009
Net Debt
Outstanding
Percent
Applicable'
Bonded Amount
Applicable
Net direct debt:
Net direct debt- City of Auburn
$ 36,160,850
Estimated net overlapping debt: c~
King County
$ 1,018,882,000
2.04%
$ 20,785,193
Port of Seattle
357,315,000
2.04%
7,289,226
School District No. 210
168,956.697
143%
4,105,648
School District No. 408
96.765,000
76.33%
73,860,726
School District No. 415
233,137.702
111%
4.919,206
Rural Library District
129,221,246
3.34%
4,315,990
Valley Regional Fire Authority
19,370,000
89.21%
17,279,977
Pierce County
141,471.648
0.92%
1,301,539
Total estimated net overlapping debt
133,857,502
Sources:
(1) City of Auburn finance department: includes both bonded and non bonded general long-term debt
(2) Overlapping governments
(3) King County Assessors office, except for Pierce Co.
157
CITY OF AUBURN: 2009 CAFR STATISTICAL SECTION
CITY OF AUBURN, WASHINGTON
SCHEDULE15
RATIOS OF NET GENERAL BONDED DEBT TO ASSESSED VALUE
AND GROSS BONDED DEBT PER CAPITA
LAST TEN FISCAL YEARS
Ratio
of Net
Debt
Net
Bonded
Gross
Assessed
Gross
Service
Bonded
Debt to
Bonded
Fiscal
Value (1)
Bonded
Amount (3)
Debt
Assessed
Debt per
Year
Population
(Thousands)
Debt (2)
Available
(Thousands)
Value
Capita
2000
42,
045
$3,392,920
$7,956,600
$56,752
$7,900
0.23%
$189
2001
43,
985
3,752,065
7,700,000
63,660
7,636
0.20%
175
2002
44,
685
3,928,917
8,769,108
5,043
8,764
0.22%
196
2003
45,
546
4,492,179
7,088,000
5,278
7,083
0.16%
156
2004
46,
135
4,677,093
6,754,000
7,248
6,747
0.14%
146
2005
47,
470
5,099,469
6,478,000
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
5,765,028
10,650,000
35,810
10,614
0.18%
211
2008
67,
005
6,556,690
10,053,000
41,603
10,011
0.15%
150
2009
67,
485
8,723,864
36,160,850
37,746
36,123
0.41%
536
N otes:
(1) From Schedule 6
(2) Amount does not include special assessment and revenue bond debt.
(3) Fund balance from debt service fund.
FIGURE 15:
BONDED DEBT RATIOS
Last
Ten Fiscal Years
0.0100
$600
0
0090
.
0
0080
$500
.
0
0070
.
0060
0
$400
v
.
N
0
0050
$300
>
.
0
0040
0
.
0
0030
$200
.
0
0020
.
0
0010
$100
.
-
$0
2000
2001 2002 2003
2004 2005 2006 2007 2008
2009
Year
-0- Debt/AV A Debt/Pop
158
CITY OF AUBURN: 2009 CAFR STATISTICAL SECTION
CITY OF AUBURN, WASHINGTON
SCHEDULE 16
PLEDGED REVENUE BOND COVERAGES
LAST TEN FISCAL YEARS
Year
Gross (1)
Revenue
Principal
Interest
Total
Times
Coverage
2000
17,749,951
11,961.126
5,788,825
880,000
614.245
1,494,245
3.87
2001
18,638,847
12,866,310
5.772,537
1,102,368
579,260
1.681,628
3.43
2002
19,928,128
13,917,916
6,010,212
1,142,368
707,581
1,849,949
3.25
2003
21,243,060
15,611,753
5.631,307
1,407,343
603.357
2,010,700
2.80
2004
21,958,359
16,834,837
5.123.522
1,633,533
539,754
2.173,287
2.36
2005
24,562,487
18,078,747
6,483,740
1,800,568
417,834
2,218,402
2.92
2006
27,087,351
19,615.315
7,472.036
1,718,412
333.016
2,051.428
3.64
2007
27,492,779
21,237,294
6,255,485
1,914,523
281,065
2,195,588
2.85
2008
27,665,498
23,149,802
4,515,696
1,942,938
279,765
2,222,703
2.03
2009
311,265,941
27,314.611
3.951,330
2,002,938
217.283
2,220,221
1.78
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.
FIGURE 16: UTILITY BOND COVERAGES
Last Ten Fiscal Years
2000
$8,000,000
$7.000.000
$6,000,000
$5,000,000
$4,000.000
$3,000,000
$2,000,000
$1,000,000
$0
Operating Net Revenue
Expense Available
2001 2002 2003 2004 2005 2006 2007 2008 2009
YEAR
159
CITY OF AUBURN: 2009 CAFR STATISTICAL SECTION
CITY OF AUBURN, WASHINGTON
SCHEDULE17
POPULATION. INCOME AND HOUSING TRENDS
LAST TEN FISCAL YEARS
School enrollment (1)
13,079
13,222
13,504
13,461
13,838
13,760
14.367
14,559
14,716
14,589
Rate of unemployment (2)
4.0!
51!
61%
6.2%
51%
4.6%
41%
3.7%
4.2!
8.1!
Population (3)
43,047
43,985
45,010
45,355
46,135
47,470
48,955
50,470
67,005
67,485
Personal income (thousands of dollars) (4J
$913,500
$974,196
$1,040462
$1,094,254
$1,161,714
$1,247,566
$1,342,818
$1,444,871
$2,024,087
$1,989,661
Per capita personal income (4J
$21,221
$22,148
$23,116
$24,126
$25,181
$26,281
$27,430
$28,628
$30,208
$29,483
Housing units tb
One unit
8,125
8,247
8,671
8,745
8,990
9,105
9,402
9,625
14,186
14,235
Two or more
7,520
7,667
7,452
7,790
8,078
8,655
8,943
9,623
10,375
10,391
Mobile home or special
2,212
2,302
2,144
2,474
2,421
2,346
2407
2,382
2761
2,782
Total housing units
17,857
18,216
18,267
19,009
19,489
20,106
20,752
21,630
27,322
27,408
(1) Auburn School District No. 408
(2) WA State Employment Security Department - average King County rate
(3) WA State Office of Financial Management
(4) City estimates - Washington Economic Forecast Summary
(5) Office of Financial Management
80,000
70
000
FIGURE 17: POPULATION AND HOUSING TRENDS
Last Ten Fiscal Years
,
60
000
,
50,000
40
000
41-
,
30
000
,
20
000
,
000
10
,
0
2000
2001 2002 2003 2004 2005 2006 2007 2008 2009
(Population -Total housing units
160
CITY OF AUBURN: 2009 CAFR STATISTICAL SECTION
Percentage
of Total City
The Boeing Company
Aerospace
5,179
1
19.6%
10,000
1
50.5%
MuckleshootTribal Enterprises
Gaming
2,500
2
9.5%
1,200
3
4.7%
Auburn School District
Education
1,800
3
6.8%
1,682
2
7.6%
Super Mall
Retail
1,700
4
6.4%
Green River Community College
Education
1,067
5
4.0%
900
4
34%
Auburn Regional Medical Center
Hospital
805
6
3.0%
500
7
2.8%
Emerald Downs Racetrack
Horse racing
678
7
2.6%
600
5
34%
Safeway
GrocertyRetail/Distribution
650
8
2.5%
Social Security Administration
Gov't/public offices
600
9
23%
536
6
3.0%
Zones, Inc.
Technology reseller
500
10
1.9%
Federal Aviation Administration
Federal government
500
10
1 .9%
500
7
2.8%
General Services Administration
Federal government
500
10
1.9%
325
9
2.0%
City of Auburn
City government
414
8
2.6%
City of Auburn Economic Development Department
FIGURE 18A: AUBURN EMPLOYMENT BASE
PERCENTAGE OF TOP EMPLOYER COMPARED TO ALL
EMPLOYERS
Last Ten Fiscal Years
FIGURE 1813: AUBURN EMPLOYMENT BASE PERCENTAGE OF
TOP 10 EMPLOYERS COMPARED TO ALL EMPLOYERS
Last Ten Fiscal Years
160%
80
60%
40
20
0%
'uiiii 'uuu
_
■Top 10 employers
❑AIl employers
161
CITY OF AUBURN. WASHINGTON
SCHEDULE 18
MAJOR EMPLOYERS
CURRENT YEAR AND NINE YEARS AGO
CITY OF AUBURN: 2009 CAFR STATISTICAL SECTION
CITY OF AUBURN, WASHINGTON
SCHEDULE19
STAFFING LEVELS BY DEPARTMENT
LAST TEN FISCAL YEARS
Mayor
3
3
3
4
4
8
10
11
12
12
Human resources
6
6
7
7
7
7
15
17
18
9
Finance
25
26
27
28
28
21
23
24
25
25
Municipal court
10
11
12
12
13
14
15
17
21
21
Legal
13
13
13
13
13
13
13
14
16
16
Planning
12
12
13
31
31
32
25
29
34
34
Police
110
112
114
115
115
117
118
121
152
152
Fire (1)
78
78
81
81
81
82
82
-
-
-
Public works
62
62
62
48
49
48
48
54
63
63
Parks & recreation
34
34
35
37
37
36
36
38
40
40
Street
13
13
13
13
13
11
11
15
14
14
Water
14
14
14
16
16
16
16
19
20
20
Sewer
7
7
7
7
6
8
8
11
11
11
Storm utility
7
7
7
7
7
9
9
12
16
17
Solid waste
6
6
6
2
2
2
2
2
2
2
Airport
3
3
3
3
3
-
-
-
-
-
Cemetery
7
7
7
7
7
6
6
7
7
7
Golf course
6
6
6
6
6
6
6
9
9
9
Facilities (2)
-
-
-
-
-
-
-
-
-
10
Information services
-
-
-
-
-
10
11
15
18
18
Equipment Rental
8
8
8
10
10
10
9
9
10
11
TOTAL
424
420
438
447
440
456
463
424
488
490
Source: City of Auburn Finance Department
(1) No data is presented for Fire employees for 2007 and thereafter due to incorporation
of Fire department into a separate legal entity effective 111107.
(.2) Facilities Division was previously included in the Hurnan Resources Department prior to the creation of a new Internal
Service fund in 2009.
(3) Due to the economic downturn, the City has frozen 82.5 of the total 490 positions.
FIGURE 19: STAFFING LEVELS
BYTYPE OF SERVICE
160
Last Ten Fiscal Years
140
■2000
120
02001
w
02002
0 100
Q
■2003
02004
w 80
o
■ 2005
a
02006
60
E
■ 2007
Z
02008
40
I
02009
20
a
y
P
°
~~"P
Q
Q
162
CITY OF AUBURN: 2009 CAFR STATISTICAL SECTION
CITY OF AUBURN, WASHINGTON
SCHEDULE 20
OPERATING INDICATORS BY DEPARTMENT
LAST TEN FISCAL YEARS
Planning
Commercial permits
Commercial construction value ($1,000's)
Residential permits
Residential construction value ($1,000's)
Police
Crimes:
Arson
Assault
Burglary
DU l
Homicide
Narcotics
Rape
Robbery
Theft
Theft - motor vehicle
Traffic:
Non-criminal
Parking
Fire
Type of response:
Building
Non-building
Alarm systems
Service
Other
First Aid
Parks and Recreation
Athletic teams
Recreation activities
Golf course rounds (i)
Senior center visits (2)
Cultural activities
Museum audience served (3)f4f
Cemetery burials
471 431 434
$75,011 $74,924 $56,257
583 422 421
$65,077 $65,326 $55,108
31 35 46
139 143 169
541 686 578
150 204 170
2 - 3
628 606 499
28 19 33
65 69 68
2,273 2,300 2,243
594 692 875
7,690 9,072 9,643
1,802 1,803 2,188
92 103 101
275 236 260
496 562 511
352 387 370
673 747 819
4,815 4,902 5,177
455 464 467
1,551 1,483 1,527
56,527 53,864 53,967
31,949 29,572 32,121
117 56 88
11,000 11,000 8,994
300 301 277
337 217 240
$50,269 $77,121 $71,047
583 766 604
$89,415 $155,551 $112,125
45 43 33
145 135 168
596 861 623
189 240 218
2 1 1
506 399 472
32 24 13
69 91 85
2,082 2,344 2,509
816 802 869
9,946 7,962 6,850
1,821 1,827 2,140
114 107 94
305 249 198
486 497 474
465 493 493
917 940 870
5,155 5,562 5,679
523 507 445
1,708 1,896 2,086
41,753 45,336 47,501
31,418 32,103 35,308
55 56 56
9,417 10,274 9,340
272 271 277
24E
$63,65£
48`
$61,872
36
15E
686
15E
493
24
122
2,21E
642
4,97£
3,96`
9E
23£
524
61£
979
5,61E
459
2,069
43,454
35,381
5E
9,40C
277
214 95 112
$63,658 $22,887 $58,896
293 165 85
$61,872 $27,048 $15,739
30 24 19
143 154 162
590 630 59C
145 194 19,
1 -
368 439 44C
12 14 13
92 102 92
1,962 2,343 2,362
672 639 37C
6,865 6,794 7,78£
4,802 3,740 4,02E
479 416 42E
2,719 2,056 2,33E
50,500 54,993 50,572
34,427 36,805 41,032
84 84 9C
12,090 11,921 11,83E
245 289 232
Sources: Various city departments
(1) 2003- Portion of golf course closed fortwo months
(2) 2001 - Senior center had reduced programs and 16 additional closure dates to facilitate move to new facility
(3) 2002- Museum actual service has increased, decline in count due to change in calculation method
(4) 2001 - Museum closed for renovations for several months
(5) 2007 - Effective 1!1!2007 Valley Regional Fire Authority formed replacing the Fire Departments of Auburn, Pacific and Algona.
163
CITY OF AUBURN: 2009 CAFR STATISTICAL SECTION
CITY OF AUBURN, WASHINGTON
SCHEDULE21
CAPITAL ASSET INDICATORS BY DEPARTMENT
LAST TEN FISCAL YEARS
General City
Total area (square miles)
21.0
22.6
22.7
22.8
22.8
23.3
23.4
23.4
30.0
30.1
Public Works
Miles of streets
155
160
166
180
180
180
180
186
272
276
Number of streetlights
2,790
2,790
2,934
2,934
3,355
3,410
3,575
3,602
5,074
5,392
Number of traffic signals
n/a
n/a
n/a
n/a
66
72
72
72
83
85
Utilities
Number of services
11,546
11,645
12,014
12,077
12,144
12,833
12,633
12,954
13,050
13,076
Miles of water mains
220
243
247
252
254
278
279
287
283
293
Miles of sanitary sewers
156
166
149
176
177
177
177
182
205
207
Miles of storm sewers
n/a
n/a
n/a
n/a
185
190
195
197
197
204
Number of fire hydrants
n/a
n/a
n/a
n/a
2.270
2.285
2.300
2.369
2.969
2.998
Public Safety
Number of fire stations (1)
3
3
3
3
3
3
3
-
-
-
Number of police stations
2
3
3
2
2
2
2
2
2
2
Parks and Recreation
Total park acreage
478
547
533
535
592
596
596
596
598
603
Number of softball/baseball fields
n/a
n/a
n/a
n/a
19
19
19
19
19
18
Number of soccer/football fields
nla
n/a
n/a
n/a
3
3
3
3
3
3
Number of playgrounds
n/a
n/a
n/a
n/a
25
29
30
30
32
33
Sources: Various city departments
(1) Effective 1/1/2007 Valley Regional Fir
e Authority forme
d replacing th
e Fire Depart
ments of Aub
urn, Pacific an
d Algona.
164
CITY OF AUBURN: 2009 CAFR STATISTICAL SECTION
Prepared by:
Shelley Coleman
Finance Director
Karen Jester
Financial Planning Manager
Lanny Petitjean
Senior Accountant
Michelle Surdez
Senior Accountant
Consuelo Rogel
Financial Analyst
Teri Ashton
Accountant
Rhonda Ewing
Utility & Accounting Services Manager
Kristen Hollis
Finance Secretary
165
CITY OF AUBURN: 2009 CAFR STATISTICAL SECTION
CITY OF
i_
* MORE THAN YOU IMAGINED
166