HomeMy WebLinkAboutMarch 2011 AGENDA BILL AP PROVAL FORM Agenda Subject: March 2011 Financial Report Date: 05/16/2011 Department: Finance Attachments: March Monthly Report Budget Impact: 0 Administrative Recommendation: Background Summary: The purpose of the monthly financial reports is to summarize for the City Council the general state of financial affairs throughout the City and to highlight signi ficant items or trends that the City Council should be aware of. The following provides a high level su mmary of the City’s financial performance. Further detail can be found within the attached financial report. The March 2011 status report highlights City revenues and expenditures and is based on financial data available as of April 18, 2011. Sales tax reported in March is for business activities that occurred in January 2011. General Fund : The general fund accounts for all of the City’s financial resources except those required by statute or to be accounted for in another fund. The General Fund is the City’s largest fund and is used to account for the majority of City services. Total General Fund revenues for the City at the end of March were $10.1 million which is 20.3% of the annual budgeted revenues. Compared to budgeted year-t o-date revenues, total General Fund revenue is $461.6K higher than anticipated due to relatively stronger than anticipated collections in sales taxes, intergovernmental revenues and utility (electric) taxes. The City’s sales taxes totaled $3.2 million and continues to improve over the previous year. Improvement in retail activity were noted in all areas with t he exception of construction which remain weak. Expenditures for the General Fund totaled $10,994,50 6 which is $1,967K (15.2%) under the projected year to date budget at the end of March. This is primarily due to professional services, transfers out and intergovernmental payments for SCORE that are antic ipated to be made in later periods. While total General Fund expenditures exceeded revenues through t he month of March, this reflects the timing of revenues such as property taxes in which the majority of this revenue source is received twice a year (April and October). Enterprise Funds : The City’s eight enterprise funds ac count for operations with revenues primarily provided from user fees, charges or contracts for services. At the end of 1 st quarter the Water fund revenues are lower t han average due to the loss of Covington as a wholesale customer and a general decline in wa ter sales. Sewer revenues are low compared to expenses due to timing of payments to Metro for sewe r services. Metro bills the City for commercial accounts based on the average prior period usage rates which were higher than current revenues. Storm fund revenues are on target and are sufficient to meet expenses. Page 1
Agenda Subject: March 2011 Financial Report Date: 5/16/2011 Golf Course revenues are low during the 1 st quarter due to the current economic climate and lower than average weather conditions that have impacted the number of rounds played during the winter months. Internal Service Funds : Internal Service Funds provide services to ot her City departments and include functions such as Insurance, Facilities, Information Services, and Equipment Rental. At the end of the first quarter 2011, revenue from char ges assessed to internal client departments were sufficient to meet expenses. Expenses for the insur ance fund during the first quarter included payment of the annual insurance premium and will offset by allo cations to various departments that will occur throughout the remainder of the year. Investment Portfolio : At the end of March, the City’s total value of ca sh and investments was $107.2 million and compares to $109.5 million in February. The change was due to mo vement of funds from the State Investment Pool and Money Market fund to cover current operations and capital expenses. Reviewed by Council & Committees: Reviewed by Departments & Divisions: Arts Commission COUNCIL COMMITTEES: Building M&O Airport Finance Cemetery Mayor Hearing Examiner Municipal Serv. Finance Parks Human Services Planning & CD Fire Planning Park Board Public Works Legal Police Planning Comm. Other Public Works Human Resources Information Services Action: Committee Approval: Yes No Council Approval: Yes No Call for Public Hearing ___/___/____ Referred to _________________________________ Until ____/___/____ Tabled ______________________________________ Until ___/___/____ Councilmember: Backus Staff: Coleman Meeting Date: May 16, 2011 Item Number: Page 2
Monthly Financial Report March 2011 General Fund 2010 Summary of Sources and Uses Annual BudgetYTD BudgetYTD ActualYTD ActualAmountPercentage OPERATING REVENUES Property Tax 12,022,340 426,500 519,174 453,373 92,674 21.7%Sales Tax (1)14,295,000 3,528,500 3,688,311 3,444,299 159,811 4.5%Sales Tax - Annexation Credit 1,356,600 350,500 363,635 346,609 13,135 3.7%Criminal Justice Sales Tax 1,177,600 306,300 327,712 318,624 21,412 7.0%Brokered Natural Gas Tax 260,000 81,600 107,056 77,967 25,456 31.2%City Utilities Tax 2,522,800 621,800 578,787 568,693 (43,013) -6.9%Admissions Tax 350,000 80,800 62,344 73,142 (18,456) -22.8%Electric Tax 2,850,000 702,000 789,549 746,132 87,549 12.5%Natural Gas Tax 1,270,410 296,300 268,472 255,003 (27,828) -9.4%Cable TV Franchise Fee 689,800 172,400 204,994 193,004 32,594 18.9%Cable TV Franchise Fee - Capital 75,000 18,600 15,993 - (2,607) -14.0%Telephone Tax 1,972,900 457,200 512,939 549,418 55,739 12.2%Garbage Tax (external)150,000 35,000 39,633 39,215 4,633 13.2%Leasehold Excise Tax 45,000 15,800 12,346 9,611 (3,454) -21.9%Gambling Excise Tax 326,500 73,900 60,029 162,734 (13,871) -18.8%Business License Fees 200,000 73,000 85,379 11,919 12,379 17.0%Building Permits 700,000 135,700 173,688 181,701 37,988 28.0%Other Licenses & Permits 229,000 53,500 59,420 77,607 5,920 11.1%Intergovernmental (Grants, etc)3,841,685 887,210 989,413 1,041,006 102,203 11.5%Charges for Services: General Government Services 64,600 18,000 21,778 26,084 3,778 21.0% Public Safety 210,000 59,200 64,040 62,145 4,840 8.2% Development Services Fees 627,000 161,300 85,761 176,336 (75,539) -46.8% Culture and Recreation 877,500 262,400 221,544 257,807 (40,856) -15.6%Fines and Forfeits 2,208,500 597,200 569,920 712,709 (27,280) -4.6%Interests and Other Earnings 110,000 35,400 18,468 37,521 (16,932) -47.8%Rents, Leases and Concessions 315,000 88,100 121,342 91,096 33,242 37.7%Contributions and Donations 12,000 3,000 9,209 14,806 6,209 207.0%Other Miscellaneous 46,200 26,300 15,263 127,158 (11,037) -42.0%Transfers In 1,079,468 78,500 78,439 17,000 (61) -0.1%Insurance Recoveries- Capital & Operating 25,000 6,300 49,239 29,533 42,939 681.6%Total Operating Revenues 49,909,903 9,652,310 10,113,879 10,102,252 461,569 4.8%Operating Expenditures Council & Mayor 851,470 223,670 177,759 165,689 45,911 20.5%Municipal Court & Probation 3,216,460 756,160 704,107 626,395 52,053 6.9%Human Resources 815,360 199,660 186,725 165,884 12,935 6.5%Finance 1,159,740 283,740 265,011 260,392 18,729 6.6%City Attorney 1,659,560 441,560 360,647 366,479 80,913 18.3%Planning 3,721,770 974,970 853,275 805,317 121,695 12.5%Community & Human Services 1,092,980 221,380 203,795 203,428 17,585 7.9%Jail - SCORE 6,087,470 1,407,370 443,103 - 964,267 68.5%Police 19,668,600 4,628,900 4,556,878 5,247,090 72,022 1.6%Engineering 2,415,200 605,400 537,979 603,682 67,421 11.1%Parks and Recreation 7,353,440 1,765,940 1,588,680 1,539,639 177,260 10.0%Streets 3,183,130 796,330 658,274 654,096 138,056 17.3%Non-Departmental 4,049,500 656,500 458,272 823,493 198,228 30.2%Total Operating Expenditures 55,274,680 12,961,580 10,994,506 11,461,584 1,967,074 15.2%2011 2011 YTD Budget vs. Actual Favorable (Unfavorable) (1) The anticipated Streamlined Sales Tax for 2011 is $1,965,470. The year to date actual sales tax amount is adjusted to include $498,293 SST Mitigation the City received from the State for the 1 st quarter of 2011. Page 3
Monthly Financial Report March 2011 Overview This financial overview reflects the City’s overa ll financial position for the fiscal year through March 31, 2011. The report represents financial data available as of April 18, 2011. The budgeted year to date revenues and operating expenses are primarily based on the collection/disbursement average for the same period of the two prior years. The table on the previous page summarizes the General Fund revenues and expenditures. At the end of March, General Fund revenues totaled $10.1 million and is at the same level for the 1 st quarter of 2010. The increase in revenue from sales tax collections have been offset by decreases in developmental service fees and fines and penalties, primarily from photo enforcement revenues. Sales taxes continue to show signs of improvement, reflecting the general improvement in the local and national economies. Rents, leases and concessions are up approximately $33k over the same period 2010 due to deposits for park facility rentals. Culture and recreational charges for services are down $41k over the same period last year, reflecting a decline in the number of attendees for fee-based parks and recreation classes. General Fund expenses at the end of February to taled $11 million compared to 11.5 million for same period 2010. When compared to budget, General Fund expenses were 15.2% below expectations, reflecting the timing of intergovernmental payments for SCORE, interfund transfers, and underexpenditures in professional services. At this writing, February and March payments to SCORE are underway and expenditures for this item is expected to be in-line with budget by the next quarter. Revenues Through the end of March, General Fund revenues totaled $10.1 million. The combined total of property tax, sales/use tax, utility tax, gamb ling, and admissions tax represents 74.7% of all resources supporting general governmental activities. The following section provides detail information on property and sales taxes. Property Tax Year to date collection at the end of March is $519,174 and is on target with expectations. The majority of property tax revenues are collected during the months of April and October, coinciding with the due date for County property tax billings. Page 4
Monthly Financial Report March 2011 $0.0 $2.0 $4.0 $6.0 $8.0 $10.0 $12.0 $14.0 JanFebMarAprMayJunJulAugSepOctNovDec Millions Property Taxes 2011 budget 2011 actual to date 2010 actual Sales Tax At the end of March, sales tax revenue including Streamlined Sales Tax Mitigation of $498,293 totaled $3,688,311 and is $244.K or 7.1% more than 2010 and $159.8K greater than the current YTD budget. Total estimated Streamlined Sales Tax Mitigation for 2011 is $1,965,470 but the actual amount the City will receive from the State is reduced by taxes received from companies that have voluntarily complied with the new destination based sales tax. Review of sales tax returns by SIC sector indicate continued improvement in nearly all sectors of the local economy, reflecting the broader economic conditions of the region and nation. Weakness was noted in the heavy construction and general building contractor sectors, reflecting the continued weakness in overall construction activity. While there is some strengthening of the general economy, short-term threats to the pace of the recovery remain and include continued weakness in the labor market, rising energy prices, and an unstable geo-political climate in the north African and middle-eastern areas of the world. Page 5
Monthly Financial Report March 2011 $0.0 $2.0 $4.0 $6.0 $8.0 $10.0 $12.0 $14.0 $16.0 JanFebMarAprMayJunJulAugSepOctNovDec Millions Sales & Use Tax 2011 budget 2011 actual to date 2010 actual *Includes Sales Tax Mitigation prorated monthly. The following table breaks out the City’s base sa les tax excluding Criminal Justice, Annexation Credit and Streamlined Sales Tax Mitigation by major business sectors. Page 6
Monthly Financial Report March 2011 20102011 Component GroupActualActualAmountPercentage New Construction 331,589 311,897 (19,692) -5.9%Manufacturing 95,139 180,612 85,473 89.8%Transportation & Warehousing6,869 16,008 9,139 133.0%Wholesale Trade 294,273 303,530 9,257 3.1%Automotive 573,342 641,563 68,221 11.9%Retail Trade 971,918 1,067,495 95,577 9.8%Services 712,783 691,133 (21,650) -3.0%Miscellaneous 10,922 17,870 6,948 63.6%YTD Total 2,996,835 3,230,108 233,273 7.8%Change from 2010 Year to Date through March Comparison of Sales Tax Collections by SIC Group Utility Tax This revenue source consists of City inter-fund utility taxes (Water, Sewer, Storm and Solid Waste) and external utility taxes (Electric, Natural gas, Te lephone and Solid Waste). Year to date utility tax revenue is in line with expectations and totaled $2,189,380 or $30.9K (1.4%) more than 2010. Overall, the 2011 actual revenues are greater by $77.1K or 3.6% more than budgeted tax revenues. The main source of this increase is attributed to higher than anticipated revenues from the electric and telephone utility taxes. $0.0 $1.0 $2.0 $3.0 $4.0 $5.0 $6.0 $7.0 $8.0 $9.0 $10.0 JanFebMarAprMayJunJulAugSepOctNovDec Millions Utility Tax 2011 budget 2011 actual to date 2010 actual The following table presents utility tax collections by source: Page 7
Monthly Financial Report March 2011 201020112011 Month ActualBudgetActualAmountPercentageAmountPercentage City Interfund Utility Taxes568,693 621,800 578,787 10,094 1.8%(43,013) -6.9%Electric 746,132 702,000 789,549 43,417 5.8%87,549 12.5%Natural Gas 255,003 296,300 268,472 13,469 5.3%(27,828) -9.4%Telephone 549,418 457,200 512,939 (36,479) -6.6%55,739 12.2%Solid Waste 39,215 35,000 39,633 418 1.1%4,633 13.2%YTD Total 2,158,460 2,112,300 2,189,380 30,920 1.4%77,080 3.6%Annual Total 8,591,258 8,766,110 Utilty Tax by Type Year to Date through March 2011 vs. 20102011 vs. Budget Cable TV Franchise Fees are received quarterly and are shown on the table below. Year to date revenues total $204,994 and are $12K or 6.2% greater than 2010 for the same period and 32.6K or 18.9% greater than the 2011 year to date budget. $0 $100 $200 $300 $400 $500 $600 $700 $800 $900 1st Quarter2nd Quarter3rd Quarter4th Quarter Thousands Cable TV Franchise Fee 2011 budget 2011 actual to date 2010 actual Licenses and Permits This revenue source is comprised of business licenses, building permits, plumbing, electric and other licenses and permit fees. At the end of March, the City has collected 28.5% of the annual projected revenue from licenses and permits. Building permit fees and Business licenses make up 80% of the annual budgeted revenue in this category. Total building permit revenues at the end of March were $173,688; this was $38K or 28% more than budgeted year to date revenues in 2011. Page 8
Monthly Financial Report March 2011 $0 $100 $200 $300 $400 $500 $600 $700 $800 $900 JanFebMarAprMayJunJulAugSepOctNovDec Thousands Building Permits 2011 budget 2011 actual to date 2010 actual Business License revenues at the end of March were $73.5K more than 2010 and $12.4K or 17% more than the 2011 year to date budget. Revenues are higher compared to 2010 for the same period due to the change in timing of payments. In prior years, payments received mid year were for a 12 month period. In contrast, starting July 2010, these payments were only for the last 6 months of the year. Business license fees were billed again in December to cover a full year in 2011. $0 $50 $100 $150 $200 $250 JanFebMarAprMayJunJulAugSepOctNovDec Thousands Business License 2011 budget 2011 actual to date 2010 actual Page 9
Monthly Financial Report March 2011 Intergovernmental Revenues in this category include Grants (Direct & Indirect Federal, State and Local), State shared revenues and compact revenue from the Muckleshoot Indian Tribe. At the end of March intergovernmental revenues were 5.0% less than 2010 and 11.5% more than budget mainly due to the timing of proceeds from the Muckleshoot co mpact. This revenue is negotiated yearly and fluctuates according to the Tribe’s net profits from gaming activities. Timing of grant revenue varies as they are processed on a reimbursement basis. 201020112011 Revenue ActualBudgetActual% Change% Change Federal Grants 12,864 19,100 557 -95.7%-97.1%State Grants 19,627 - - -100.0%N/A Interlocal Grants 19,242 14,500 12,501 -35.0%-13.8%State Shared Revenue 621,043 624,510 629,391 1.3%0.8%Muckleshoot Casino Emerg.368,231 229,100 335,525 -8.9%46.5%Intergovernmental Service - - 11,440 N/A N/A YTD Total 1,041,006 887,210 989,413 -5.0%11.5%Annual Total 4,089,803 3,841,685 YTD %25%23%26%Intergovernmental Year to Date through March 2011 vs. 20102011 vs. Budget Total state shared revenues are $8.3K greater than the same period 2010 due to the new revenue source for Criminal Justice-High crime. Based on crime statistics, starting July 2010 the City began receiving this revenue source which partially offset a decrease in revenues from Criminal Justice –Population. At the end of March, total state shared revenues are in line with the budget and are only $4.9K or 0.8% higher than year to date budget. 201020112011 Revenue ActualBudgetActualAmountPercentageAmountPercentage Trial Court Improvements5,680 3,400 11,234 5,554 97.8%7,834 230.41%Court Interpreter Program - - 4,931 4,931 N/A4,931 N/A Motor Vehicle Fuel Tax346,834 340,700 346,149 (685) -0.2%5,449 1.6%Criminal Justice -High Crime - 37,100 37,353 37,353 N/A253 0.68%Criminal Justice -Population17,034 12,980 3,817 (13,217) -77.6%(9,163) -70.6%Criminal Justice -Spec. Prog.14,056 13,600 14,412 356 2.5%812 6.0%State DUI 3,156 1,000 3,107 (49) -1.6%2,107 210.7%Fire Insurance Premium Tax - - - - N/A - N/A Liquor Excise Tax 80,826 83,000 81,197 372 0.5%(1,803) -2.2%Liquor Profits 153,457 132,730 127,191 (26,266) -17.1%(5,539) -4.17%YTD Total 621,043 624,510 629,391 8,348 1.3%4,881 0.8%Annual Total2,594,749 2,570,785 Year to Date through March State Shared Revenues 2011 vs. 20102011 vs. Budget Page 10
Monthly Financial Report March 2011 Charges for Services This revenue source consists of general governmental services, public safety, development service fees and cultural & recreation fees. Development services and culture & recreation revenues make up approximately 85% of the $1.78 million annual budget for this category and are presented following the Charges for Service table below. At the end of March $393,124 or 22.1% of the annual budget has been received for all charges for services. General government services include passport services, administrative fees, court duplicating costs and sale of maps & publications. This income ca tegory is low compared to 2010 primarily due to a decrease in court related administrative fees and passport services revenue. Public Safety consists of law enforcement servic es, probation and prisoner lodging fees; overall this revenue source is $4.8K or 8.2% more than budget at the end of March due to increased receipts from probation fees. This revenue accounts for $60K of the $64K received to date for public safety. 201020112011 Revenue ActualBudgetActualAmountPercentageAmountPercentage General Government 26,084 18,000 21,778 (4,306) -16.51%3,778 20.99%Public Safety 62,145 59,200 64,040 1,896 3.1%4,840 8.2%Development Services 176,336 161,300 85,761 (90,575) -51.4%(75,539) -46.8%Culture & Recreation 257,807 262,400 221,544 (36,262) -14.1%(40,856) -15.6%YTD Total 522,372 500,900 393,124 (129,248) -24.7%(107,776) -21.5%Annual Total1,861,204 1,779,100 Charges for Services by Type Year to Date through March 2011 vs. 20102011 vs. Budget Development services include engineering fees, zoni ng & subdivision fees and plan check fees. At the end of March, revenues totaled $85,751 and is 51.4% or $90.6K less than the same period in 2010. Total development service revenue is less than the budget for the year by $75.5K or 46.8% primarily due to lower than anticipated engineering and plan check fees revenue. $0 $100 $200 $300 $400 $500 $600 $700 $800 JanFebMarAprMayJunJulAugSepOctNovDec Thousands Development Service Fees 2011 budget 2011 actual to date 2010 actual Page 11
Monthly Financial Report March 2011 Culture & Recreation revenues consist of theater ti cket sales, recreational classes, arts commission and senior citizen program fees. Total revenue at the end of March shows a decrease of $36.3K from 2010 and $40.9K less than 2011 annual budget primarily due to lower recreational classes revenue from adult health & fitness classes, adult softball program, youth camp and sports programs. $0 $100 $200 $300 $400 $500 $600 $700 $800 $900 $1,000 JanFebMarAprMayJunJulAugSepOctNovDec Thousands Culture & Recreation 2011 budget 2011 actual to date 2010 actual Fines & Penalties This revenue category includes traffic and parking in fraction penalties, criminal (traffic, non traffic and costs) false alarm and shopping cart fines. Year to date, this revenue source is $569,920 or 20% less than 2010 for the same period and $27.3K or 4.6% lower than the projected budget. The overall decrease in March is primarily due to lower photo enforcement revenues. $0.0 $0.5 $1.0 $1.5 $2.0 $2.5 $3.0 JanFebMarAprMayJunJulAugSepOctNovDec Millions Fines & Penalties 2011 budget 2011 actual to date 2010 actual Page 12
Monthly Financial Report March 2011 201020112011 Month ActualBudgetActualAmountPercentageAmountPercentage Civil Penalties 6,697 3,800 4,983 (1,714) -25.6%1,183 31.1%Civil Infraction Penalties 226,022 151,800 190,321 (35,701) -15.8%38,521 25.4%Red Light Photo Enforcement355,694 328,900 248,649 (107,045) -30.1%(80,251) -24.4%Parking Infractions 50,508 42,700 45,818 (4,691) -9.3%3,118 7.3%Criminal Traffic Misdemeanor24,969 30,100 24,155 (814) -3.3%(5,945) -19.8%Criminal Non-Traffic Fines33,289 27,600 24,442 (8,847) -26.6%(3,158) -11.4%Criminal Costs 3,308 3,400 4,295 988 29.9%895 26.3%Non-Court Fines & Penalties12,223 8,900 27,257 15,034 123.0%18,357 206.3%YTD Total 712,709 597,200 569,920 (142,789) -20.0%(27,280) -4.6%Annual Total 2,472,411 2,208,500 Fines & Forfeits by Type Year to Date through March 2011 vs. 20102011 vs. Budget $0.0 $0.2 $0.4 $0.6 $0.8 $1.0 $1.2 $1.4 JanFebMarAprMayJunJulAugSepOctNovDec Millions Photo Enforcement 2011 budget 2011 actual to date 2010 actual Page 13
Monthly Financial Report March 2011 Miscellaneous This revenue source is comprised of interest and other investment earnings, rents, leases & concessions, contributions & donations and other miscellaneous income. The 2011 budget for this revenue category is $483,200 and interest & investment and rentals & leases make up 88% of the annual budget. Decreased interest revenue reflects impact of timing of investment activity and the decline in the financial markets; the Local Government Investment Pool interest has decreased from 0.28% in January 2010 to 0.23% in March 2011. The increase in rentals & leases compared to 2010 revenue and 2011 year to date budget is primarily due to revenue from park facility rental deposits. Other miscellaneous revenue is budgeted conservatively and year to date 2010 receipts are higher than 2011 for the same period because of a $15.6K reimbursement for General Fund in January 2010. 201020112011 Month ActualBudgetActualAmountPercentageAmountPercentage Interest & Investments 37,521 35,400 18,468 (19,052) -50.8%(16,932) -47.8%Rents & Leases 91,096 88,100 121,342 30,246 33.2%33,242 37.7%Contributions & Donations14,806 3,000 9,209 (5,597) -37.8%6,209 207.0%Other Miscellaneous Revenue127,158 26,300 15,263 (111,895) -88.0%(11,037) -42.0%YTD Total 270,581 152,800 164,282 (106,299) -39.3%11,482 7.5%Annual Total 899,378 483,200 Miscellaneous Revenues by Type Year to Date through March 2011 vs. 20102011 vs. Budget Real Estate Excise Tax The Real Estate Excise Tax (REET) revenue is received in the Capital Improvement Projects Fund and is used for governmental capital projects. Total revenue at the end of March is $279.4K or 158.9% more than 2010 and $247K or 118.6% more than budget. This sharp increase in REET revenue is primarily due to a large commercial pr operty transaction that occurred in March along with the continuing recovery in the residential and commercial markets. $0.0 $0.2 $0.4 $0.6 $0.8 $1.0 $1.2 $1.4 JanFebMarAprMayJunJulAugSepOctNovDec Millions Real Estate Excise Tax 2011 budget 2011 actual to date 2010 actual Page 14
Monthly Financial Report March 2011 Enterprise Funds The table below provides an analysis of all City Enterprise funds and shows the year to date revenues and expenditures for each enterprise fund. WaterSewer StormSolid WasteAirportCemeteryGolf OPERATING REVENUES Charges for services 1,880,914 4,114,180 1,694,014 2,224,084 6,471 188,231 108,804 Rents, Leases, Concessions & Other - - - - 156,738 - 10,203 TOTAL OPERATING REVENUES 1,880,914 4,114,180 1,694,014 2,224,084 163,208 188,231 119,006 OPERATING EXPENSES:Administration 599,563 473,556 610,749 181,595 163,817 70,012 58,997 Operations & Maintenance 932,877 3,707,729 605,026 1,521,110 31 135,762 223,840 Depreciation & Amortization 525,163 415,417 331,734 4,705 108,791 14,678 82,162 TOTAL OPERATING EXPENSES 2,057,604 4,596,701 1,547,509 1,707,409 272,639 220,452 364,999 OPERATING INCOME (LOSS)(176,690) (482,521) 146,505 516,674 (109,431) (32,221) (245,992) NON-OPERATING REVENUES & EXPENSES Interest Revenue 10,236 23,320 4,215 265 638 73 - Other Non Operating Revenue (165) - 648 - 200 5 - Other Non Operating Expense - - - - - - - TOTAL NON-OPERATING REVENUES (EXPENSES)10,072 23,320 4,862 265 838 78 - (166,619) (459,201) 151,367 516,939 (108,593) (32,143) (245,992) Contributions 37,984 77,546 65,397 - - - - Transfers In 3,891 Transfers Out (50,000) (50,000) (96,000) - - - - TOTAL CONTRIBUTIONS & TRANSFERS (12,016) 27,546 (30,603) - - - 3,891 CHANGE IN FUND BALANCE (178,635) (431,655) 120,764 516,939 (108,593) (32,143) (242,102) BEGINNING FUND BALANCE, January 1, 201158,962,689 67,629,064 40,956,334 923,810 9,705,318 865,780 5,210,529 ENDING FUND BALANCE, March 31, 2011 58,784,055 67,197,409 41,077,098 1,440,749 9,596,725 833,637 4,968,427 INCOME (LOSS) BEFORE CONTRIBUTIONS & TRANSFERS Page 15
Monthly Financial Report March 2011 The Water utility incurred an operating loss at the end of March, reflecting a decline in water sales from $2.1 million for the 1 st quarter 2010 to $1.9 million for the same period 2011. The decline in water sales is due to the loss of Covington as a wholesale water customer and a general decline in water usage among other City customer classes. Despite a rate increase of 7% effective January 1, 2011, the changes noted above more than offset the increase in rates. While water sales are expected to increase as the we ather warms, overall sales for 2011 will likely remain below 2010 levels for the remainder of the year. Finance plans to prepare an updated financial analysis of the Water utility and rate revenue sufficiency by summer or early fall. ‐200,000 400,000 600,000 800,000 1,000,000 1,200,000 Water Revenues ($) vs Water Sold (ccf)2010 ‐Present 2010 Water Sales ($)2011 Water Sales ($)2010 Water Sold (ccf)2011 Water Sold (ccf) March operating expenses for the Sewer utility reflect the timing of payments to King County for Metro sewer treatment services. Metro billings for the 1 st quarter 2011 totaled $3.1M and compares to $2.5M for the same period 2010. Bi llings for sewer treatment services are based on the average number of residential customer equivalents for the previous 12 months and include adjustments for Boeing and GSA during 2010. Billings for sewer treatment services are not expected to normalize until the 3 rd quarter 2011 when the effects of the timing of these adjustments are worked through the Metro billing cycle. Golf Course operating revenues totaled $116K for the 1 st quarter 2011 and compares to $173K for the same period 2010, due to a decline in the level of golfing activity (as a result of the current economic conditions) coupled with below average weather conditions. During the 1 st quarter of 2011 the Golf Course has experienced lower rounds played as it has rained 29 of the 38 weekend days throughout this period. In addition, the Golf Course was closed for 23 days during the 1 st quarter of 2011 due to snow and flooding. While revenues are anticipated to increase during the spring and summer months as playing conditions become more favorable, operating losses at the Golf Course are expected to continue for the remainder of 2011. Page 16
Monthly Financial Report March 2011 $0 $50 $100 $150 $200 $250 $300 JanFebMarAprMayJunJulAugSepOctNovDec Thousands Golf Course Operating Revenues 2011 actual to date 2010 actual Page 17
Monthly Financial Report March 2011 Internal Service Funds The table below provides an analysis of all City Internal Service funds and shows the year to date revenues and expenditures for each fund. InformationEquipment InsuranceFacilities ServicesRental OPERATING REVENUES:Interfund Charges for services - 970,824 1,039,857 709,895 Rents, Leases, Concessions & Other - 179 6,072 - TOTAL OPERATING REVENUES - 971,003 1,045,929 709,895 OPERATING EXPENSES:Administration 851,187 - 61,650 152,493 Operations & Maintenance - 489,345 883,928 299,196 Depreciation & Amortization - - 120,402 236,593 TOTAL OPERATING EXPENSES 851,187 489,345 1,065,980 688,282 OPERATING INCOME (LOSS)(851,187) 481,658 (20,051) 21,613 NON-OPERATING REVENUES & EXPENSES Interest Revenue 785 608 2,234 3,227 Other Non Operating Revenue - 32,439 - Other Non Operating Expense - - - - TOTAL NON-OPERATING REVENUES (EXPENSES)785 33,047 2,234 3,227 INCOME (LOSS) BEFORE CONTRIBUTIONS & TRANSFERS(850,401) 514,705 (17,818) 24,840 Contributions - - - Transfers In Transfers Out - (187,500) (7,000) TOTAL CONTRIBUTIONS & TRANSFERS - (187,500) - (7,000) CHANGE IN FUND BALANCE (850,401) 327,205 (17,818) 17,840 BEGINNING FUND BALANCE, January 1, 2011 2,366,832 731,686 4,918,922 10,611,968 ENDING FUND BALANCE, March 31, 2011 1,516,431 1,058,891 4,901,104 10,629,808 The Insurance Fund expenses include $797,070 balance of the annual insurance payment. This amount will be decreasing throughout the year as the expense is being allocated to various departments and funds on a monthly journal entry. The Facilities Fund revenues of $970,824 cover expenses totaling 676,845 that include $187,500 in transfers out for debt service related to the annex building. Equipment rental fund balance of $10,629,808 includes approximately $4.6 M in fixed assets net of depreciation which primarily consists of the City’s fleet vehicles. Page 18
Monthly Financial Report March 2011 Contact Information This report is prepared by the Finance Department . Additional financial information can also be viewed at our website: http://www.auburnwa.gov/. For any questions about the report please contact us at mchaw@auburnwa.gov or scoleman@auburnwa.gov . Page 19
SALES TAX SUMMARY MARCH 2011 SALES TAX DISTRIBUTIONS (FOR JANUARY 2011 RETAIL ACTIVITY)10 Total 10 YTD 11 YTD YTD 10 Total 10 YTD 11 YTD YTD NAICS CONSTRUCTION (NOV-OCT)(NOV-JAN)(NOV-JAN)% Diff NAICS AUTOMOTIVE (NOV-OCT)(NOV-JAN)(NOV-JAN)% Diff 236 Construction of Buildings 607,355 146,050 126,902 -13.1%441 Motor Vehicle and Parts Dealer 2,346,944 526,036 587,714 11.7%237 Heavy and Civil Construction 121,822 45,450 23,469 -48.4%447 Gasoline Stations 210,961 47,306 53,850 13.8%238 Specialty Trade Contractors 594,645 140,089 161,526 15.3%TOTAL AUTOMOTIVE 2,557,905 $ 573,342 $ 641,563 $ TOTAL CONSTRUCTION 1,323,822 $ 331,589 $ 311,897 $ Overall Change from Previous Year 68,222 $ 11.9%Overall Change from Previous Year (19,692)$ -5.9%10 Total 10 YTD 11 YTD YTD 10 Total 10 YTD 11 YTD YTD NAICS RETAIL TRADE (NOV-OCT)(NOV-JAN)(NOV-JAN)% Diff NAICS MANUFACTURING (NOV-OCT)(NOV-JAN)(NOV-JAN)% Diff 442 Furniture and Home Furnishings 193,852 55,732 54,885 -1.5%311 Food Manufacturing 2,062 439 477 8.7%443 Electronics and Appliances 120,703 33,723 36,340 7.8%312 Beverage and Tobacco Products 3,610 908 961 5.9%444 Building Material and Garden 389,137 87,380 76,170 -12.8%313 Textile Mills 121 38 61 63.1%445 Food and Beverage Stores 351,329 85,102 84,205 -1.1%314 Textile Product Mills 1,682 409 427 4.3%446 Health and Personal Care Store 143,820 40,756 41,240 1.2%315 Apparel Manufacturing 2,202 518 2,361 355.5%448 Clothing and Accessories 730,903 203,828 216,671 6.3%316 Leather and Allied Products 45 13 8 -41.1%451 Sporting Goods, Hobby, Books 116,615 36,990 39,888 7.8%321 Wood Product Manufacturing 30,078 11,245 5,885 -47.7%452 General Merchandise Stores 801,501 237,012 315,643 33.2%322 Paper Manufacturing 10,842 2,844 2,979 4.7%453 Miscellaneous Store Retailers 504,303 124,031 129,397 4.3%323 Printing and Related Support 43,243 12,674 10,988 -13.3%454 Nonstore Retailers 234,807 67,363 73,056 8.5%324 Petroleum and Coal Products 3,320 545 610 11.9%TOTAL RETAIL TRADE 3,586,970 $ 971,918 $ 1,067,495 $ 325 Chemical Manufacturing 8,684 1,240 1,458 17.6%Overall Change from Previous Year 95,578 $ 9.8%326 Plastics and Rubber Products 9,254 2,313 2,096 -9.4%327 Nonmetallic Mineral Products 19,031 3,482 2,513 -27.8%331 Primary Metal Manufacturing 189 27 30 8.3%10 Total 10 YTD 11 YTD YTD 332 Fabricated Metal Product Manuf 17,110 5,169 5,090 -1.5%NAICS SERVICES (NOV-OCT)(NOV-JAN)(NOV-JAN)% Diff 333 Machinery Manufacturing 13,445 3,995 3,106 -22.2%51*Information 978,115 103,033 100,895 -2.1%334 Computer and Electronic Produc 12,773 2,019 3,735 85.0%52*Finance and Insurance 68,357 19,184 15,611 -18.6%335 Electric Equipment, Appliances 192 18 28 57.2%53*Real Estate, Rental, Leasing 288,013 70,621 68,748 -2.7%336 Transportation Equipment Man 186,247 34,524 127,230 268.5%541 Professional, Scientific, Tech 188,696 57,202 45,812 -19.9%337 Furniture and Related Products 12,784 4,229 2,249 -46.8%551 Company Management 165 45 41 -10.1%339 Miscellaneous Manufacturing 27,899 8,487 8,317 -2.0%56*Admin. Supp., Remed Svcs 234,384 51,775 64,403 24.4%TOTAL MANUFACTURING 404,813 $ 95,139 $ 180,612 $ 611 Educational Services 55,877 13,545 13,724 1.3%Overall Change from Previous Year 85,473 $ 89.8%62*Health Care Social Assistannce 37,475 17,906 3,658 -79.6%71*Arts and Entertainment 153,918 68,573 70,262 2.5%72*Accomodation and Food Svcs 806,733 191,280 191,609 0.2%10 Total 10 YTD 11 YTD YTD 81*Other Services 385,105 98,602 96,896 -1.7%NAICS TRANSPORTATION AND WAREHOUSING (NOV-OCT)(NOV-JAN)(NOV-JAN)% Diff 92*Public Administration 109,678 21,016 19,474 -7.3%481 Air Transportation - - 24 N/A TOTAL SERVICES 3,306,516 $ 712,783 $ 691,133 $ 482 Rail Transportation 4,500 606 7,598 1154.1%Overall Change from Previous Year (21,650)$ -3.0%484 Truck Transportation 7,660 1,736 2,688 54.8%485 Transit and Ground Passengers 57 52 39 -25.0%488 Transportation Support 13,207 3,348 4,194 25.3%10 Total 10 YTD 11 YTD YTD 491 Postal Service 194 61 61 0.1%NAICS MISCELLANEOUS (NOV-OCT)(NOV-JAN)(NOV-JAN)% Diff 492 Couriers and Messengers 993 369 558 51.4%000 Unknown 754 - - N/A 493 Warehousing and Storage 2,574 699 847 21.2%111-115 Agriculture, Forestry, Fishing 2,839 1,647 1,666 1.2%TOTAL TRANSPORTATION 29,185 $ 6,869 $ 16,008 $ 211-221 Mining & Utilities 22,364 3,640 3,463 -4.8%Overall Change from Previous Year 9,139 $ 133.0%999 Unclassifiable Establishments 102,180 5,636 12,740 126.1%TOTAL SERVICES 128,138 $ 10,922 $ 17,870 $ Overall Change from Previous Year 6,947 $ 63.6%10 Total 10 YTD 11 YTD YTD NAICS WHOLESALE TRADE (NOV-OCT)(NOV-JAN)(NOV-JAN)% Diff 423 Wholesale Trade, Durable Goods 1,020,802 254,938 265,513 4.1%GRAND TOTAL 12,522,789 $ 2,996,834 $ 3,230,108 $ 424 Wholesale Trade, Nondurable 160,317 38,839 37,170 -4.3%Overall Change from Previous Year 233,274 $ 7.8%425 Wholesale Electronic Markets 4,320 496 847 70.7%TOTAL WHOLESALE 1,185,440 $ 294,273 $ 303,530 $ Overall Change from Previous Year 9,257 $ 3.1%February 28,2011 file:Monthly Sales Tax Report.xls Prepared by Auburn Financial Planning Page 20
Investment PurchasePurchaseMaturityYield to Type Date Price DateMaturity State Investment PoolVarious 87,969,178 $ Various 0.23%KeyBank Money MarketVarious 6,954,433Various 0.10%US Treasury 05/04/1990 57,75005/15/20165.72%FHLB 2/2/20091,000,000.008/2/20111.840%FHLB 3/28/20112,000,000.003/28/20141.300%FHLB 3/28/20112,000,000.006/28/20131.000%FNMA 5/13/20101,725,000.0011/13/20121.550%FHLB 5/20/20102,500,000.002/20/20131.625%FHLMC 6/24/20102,000,000.0012/24/20131.750%FNMA 6/30/20101,000,000.0012/30/20131.750% Total Cash & Investments 107,206,362 $ 0.373%Investment Mix% of Total State Investment Pool 82.1%Current 6-month treasury rate0.16%KeyBank Money Market 6.5%Current State Pool rate0.23%US Treasury 0.1%KeyBank Money Market0.10%FHLB 7.0%Blended Auburn rate0.37%FNMA 2.5%FHLMC 1.9%100.0%City of Auburn Investment Portfolio Summary As of March 31, 2011 Summary Page 21