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HomeMy WebLinkAboutJuly 2012 AGENDA BILL APPROVAL FORM Agenda Subject: July 2012 Financial Report Date: 09/04/2012 Department: Finance Attachments: Monthly Financial 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 city- wide financial affairs and to highlight significant items or trends that the City Council should be aware of. The following provides a high level summary of the City’s financial performance. Further detail can be found within the attached financial report. The July status report is based on financial data available as of August 22, 2012. Sales tax information represents business activity that occurred in May 2012. General Fund: The general fund is the City’s largest fund and is used to account for the majority of City resources and services except those required by statute or to be accounted for in another fund. Revenue collections totaled $30.2 million and are running slightly ahead of budget-to-date of $29.3 million due primarily to increased revenues from building permits and development fees. City building permit activity has increased over prior year levels and mirror a general increase in construction activity across the country. While home prices nationally are down by nearly 30% over a year ago, the increased activity is encouraging news among most economic indicators which have remained stubbornly lackluster. Expenses totaled $32.0 million and are running below budget of $34.8 million and compare to expenditures of $28.3 million for the same period last year. 2012 departmental expenses are below budget primarily due to savings as a result of earlier staff vacancies within the Police Department. 2012 non-departmental expenses are increased over the prior year due primarily to the timing of a $2.5 million transfer to the Cumulative Reserve Fund to support transfers made to the Cemetery and Golf Course Funds and debt service payments1. Enterprise Funds: The City’s eight enterprise funds account for operations with revenues primarily provided from user fees, charges or contracts for services. At the end of July, the Water fund ended with net income of $40,200; the Sewer fund ended this period with a $745,000 operating loss; and the Stormwater fund ended with an operating income of $431,000. The Golf Course ended the period with an operating loss of $228,500. Cemetery revenues at the end of July totaled $460,000 and were below expenses of $577,000. The Cemetery Fund saw its net loss decrease to $117,100 from $148,800 the previous month, reflecting an increase in the number of lot and liner sales. 1 Budget Amendment #8, Ordinance #6410. 1 Agenda Subject: July 2012 Financial Report Date: 09/04/2012 Internal Service Funds: Internal Service Funds provide services to other City departments and include functions such as Insurance, Facilities, Information Services, and Equipment Rental. At the end of the year, revenue from charges assessed to internal client departments was sufficient to meet expenses. Investment Portfolio: The City’s total cash and investments at the end of July were $98.9 million and compare to $96.9 million the previous month. 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: Partridge Staff: Coleman Meeting Date: September 17, 2012 Item Number: 2 Monthly Financial Report July 2012 General Fund 2011 Summary of Sources and Uses Annual BudgetYTD BudgetYTD ActualYTD ActualAmountPercentage OPERATING REVENUES Property Tax 12,562,565 6,606,900 6,736,513 6,635,751 129,613 2.0% Sales Tax (1)14,227,000 8,183,000 8,285,483 8,587,364 102,483 1.3% Sales Tax - Annexation Credit 1,383,730 779,030 850,138 841,038 71,108 9.1% Criminal Justice Sales Tax 1,212,900 695,500 781,778 776,755 86,278 12.4% Brokered Natural Gas Tax 260,000 178,800 222,187 209,879 43,387 24.3% City Utilities Tax 2,620,200 1,465,500 1,534,848 1,375,936 69,348 4.7% Admissions Tax 360,000 224,900 234,283 201,139 9,383 4.2% Electric Tax 3,275,000 2,537,600 2,457,352 2,412,727 (80,248) -3.2% Natural Gas Tax 1,295,820 1,146,420 991,567 998,853 (154,853) -13.5% Cable TV Franchise Fee 703,600 528,500 605,115 604,357 76,615 14.5% Cable TV Franchise Fee - Capital 75,000 55,100 47,269 48,068 (7,831) -14.2% Telephone Tax 2,012,400 1,173,900 1,259,608 1,174,665 85,708 7.3% Garbage Tax (external)150,000 81,000 71,044 81,497 (9,956) -12.3% Leasehold Excise Tax 50,000 22,900 19,706 20,254 (3,194) -13.9% Gambling Excise Tax 331,500 235,000 140,075 176,592 (94,925) -40.4% Taxes sub-total 40,519,715 23,914,050 24,236,966 24,144,874 322,916 1.4% Business License Fees 200,000 96,100 125,541 112,848 29,441 30.6% Building Permits 700,000 434,000 768,309 691,929 334,309 77.0% Other Licenses & Permits 229,000 130,100 209,729 242,811 79,629 61.2% Intergovernmental (Grants, etc)3,537,473 2,239,972 2,175,720 2,485,797 (64,252) -2.9% Charges for Services: General Government Services 64,600 38,200 69,590 48,629 31,390 82.2% Public Safety 223,500 137,200 144,004 146,366 6,804 5.0% Development Services Fees 627,000 306,900 500,457 284,470 193,557 63.1% Culture and Recreation 920,000 627,300 583,341 537,906 (43,959) -7.0% Fines and Forfeits 1,499,800 970,800 960,170 1,286,530 (10,630) -1.1% Fees/Charges/Fines sub-total 8,001,373 4,980,572 5,536,861 5,837,286 556,289 11.2% Interests and Other Earnings 115,000 65,000 53,220 47,768 (11,780) -18.1% Rents, Leases and Concessions 311,000 209,000 218,536 253,993 9,536 4.6% Contributions and Donations 20,500 11,900 32,006 31,841 20,106 169.0% Other Miscellaneous 46,200 30,200 46,114 46,655 15,914 52.7% Transfers In 17,000 17,000 17,000 78,439 - 0.0% Insurance Recoveries- Capital & Operating 50,000 24,770 52,257 95,967 27,487 111.0% Other Revenues sub-total 559,700 357,870 419,134 554,663 61,264 17.1% Total Operating Revenues 49,080,788 29,252,492 30,192,960 30,536,822 940,468 3.2% Operating Expenditures Council & Mayor 869,890 502,490 502,177 445,274 313 0.1% Municipal Court & Probation 3,399,260 1,878,360 1,701,288 1,713,692 177,072 9.4% Human Resources 942,164 533,730 466,828 457,067 66,902 12.5% Finance 1,235,590 721,300 682,100 655,858 39,200 5.4% City Attorney 1,699,500 1,027,500 957,503 926,473 69,997 6.8% Planning 3,883,620 2,182,600 2,247,409 2,073,952 (64,809) -3.0% Community & Human Services 1,160,360 688,460 644,978 514,299 43,482 6.3% Jail - SCORE 4,764,750 2,639,350 2,276,233 2,505,338 363,117 13.8% Police 20,682,698 11,780,100 10,580,061 10,595,710 1,200,039 10.2% Engineering 2,718,870 1,533,570 1,431,380 1,280,132 102,190 6.7% Parks and Recreation 7,598,230 4,384,830 4,249,034 4,038,466 135,796 3.1% Streets 3,415,280 1,827,880 1,569,886 1,450,835 257,994 14.1% Non-Departmental 7,130,550 5,088,450 4,666,673 1,613,253 421,777 8.3% Total Operating Expenditures 59,500,762 34,788,620 31,975,549 28,270,349 2,813,071 8.1% 2012 2012 YTD Budget vs. Actual Favorable (Unfavorable) (1) The anticipated Streamlined Sales Tax for 2012 is $1.96 million. The year to date actual Sales Tax amount includes $930,770 Streamlined Sales Tax Mitigation received from the State through June and $161,484 forecasted for July, for a total of $1,092,254 YTD. 3 Monthly Financial Report July 2012 Overview This financial overview reflects the City’s overall financial position for the fiscal period ending July 31, 2012 and represents financial data available as of August 22, 2012. The budgeted year- to-date revenues and operating expenses are based on the collection/disbursement average for the same period of the two prior years. General Fund revenues totaled $30.2 million and were above budget by 3.2%, or $940,000. This period’s highlights include: - Tax revenues totaled $24.1 million and were $323,000 above budget. - Sales taxes totaled $8.3 million and were $102,000 above budget. - Revenue from Fees/Charges/Fines totaled $5.5 million and were $556,000 above budget due to stronger than budgeted revenue from development activity. - Other revenues totaled $419,000 and were 17% or $61,000 above budget. General Fund expenses totaled $32.0 million and were $2.8 million below budget and compare to expenses of $28.3 million for the same period last year. Revenues The combined total of property tax, sales/use tax, utility tax, gambling, and admissions tax provide approximately 80% of all resources supporting general governmental activities. The following section provides additional information on these sources. Property Tax collections to date total $6.7 million and exceeds budget by 2.0% or $130,000. 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. $0.0 $2.0 $4.0 $6.0 $8.0 $10.0 $12.0 $14.0 JanFebMarAprMayJunJulAugSepOctNovDec Mi l l i o n s Property Taxes 2012 budget 2012 actual to date 2011 actual 4 Monthly Financial Report July 2012 Sales taxes totaled $8.6 million and is on target with budget and includes $1,092,000 in Streamlined Sales Tax Mitigation. $0.0 $2.0 $4.0 $6.0 $8.0 $10.0 $12.0 $14.0 $16.0 JanFebMarAprMayJunJulAugSepOctNovDec Mi l l i o n s Sales & Use Tax 2012 budget 2012 actual to date 2011 actual The following table breaks out the City’s base sales tax, excluding Criminal Justice, Annexation Credit and Streamlined Sales Tax Mitigation by major business sectors. 20112012 Component GroupActualActualAmountPercentage New Construction 686,714 620,890 (65,824) -9.6% Manufacturing 367,965 174,878 (193,087) -52.5% Transportation & Warehousing56,947 28,184 (28,763) -50.5% Wholesale Trade 737,804 741,272 3,468 0.5% Automotive 1,596,932 1,716,478 119,546 7.5% Retail Trade 2,229,739 2,231,040 1,301 0.1% Services 1,617,135 1,667,434 50,299 3.1% Miscellaneous 156,526 35,373 (121,153) -77.4% YTD Total 7,449,762 7,215,549 (234,213) -3.1% Change from 2011 Year to Date through July Comparison of Sales Tax Collections by SIC Group As shown above, sales taxes by business sector totaled $7.2 million and are 3.1% less than the same period last year due, in part, to two adjustments by the Washington State Department of Revenue that reduced the City’s sales taxes by $93,9851. 1 Wa. State Department of Revenue adjustments reduced sales taxes within the manufacturing and services sectors by $73,971 and $20,014, respectively. 5 Monthly Financial Report July 2012 $0.0 $1.0 $2.0 $3.0 $4.0 $5.0 $6.0 $7.0 $8.0 $9.0 $10.0 JanFebMarAprMayJunJulAugSepOctNovDec Mi l l i o n s Utility Tax 2012 budget 2012 actual to date 2011 actual Utility Taxes consists of City inter-fund utility taxes (Water, Sewer, Storm and Solid Waste) and external utility taxes (Electric, Natural gas, Telephone and Solid Waste). Year-to-date collections totaled $6.3 million and are running 1.4% below budget. The following table presents utility tax collections by source: 201120122012 Month ActualBudgetActualAmountPercentageAmountPercentage City Interfund Utility Taxes1,375,936 1,465,500 1,534,848 158,911 11.5%69,348 4.7% Electric 2,412,727 2,537,600 2,457,352 44,626 1.8%(80,248) -3.2% Natural Gas 998,853 1,146,420 991,567 (7,285) -0.7%(154,853) -13.5% Telephone 1,174,665 1,173,900 1,259,608 84,943 7.2%85,708 7.3% Solid Waste 81,497 81,000 71,044 (10,453) -12.8%(9,956) -12.3% YTD Total 6,043,678 6,404,420 6,314,420 270,742 4.5%(90,000) -1.4% Year to Date through July Utility Tax by Type 2012 vs. 20112012 vs. Budget 6 Monthly Financial Report July 2012 Cable TV Franchise Fees exceed budget by $77,000 and are comparable to 2011 levels. This revenue source is likely to outperform budget by the end of 2012 and end at levels similar to the previous year. $0 $100 $200 $300 $400 $500 $600 $700 $800 $900 1st Quarter2nd Quarter3rd Quarter4th Quarter Th o u s a n d s Cable TV Franchise Fee 2012 budget 2012 actual to date 2011 actual Licenses and Permits include business licenses, building permits, plumbing, electric and other licenses and permit fees. Building permit fees and Business licenses make up 80% of the annual budgeted revenue in this category. Building permit revenues were $768,000 and exceeded both budget and prior year levels of $434,000 and $692,000, respectively. Building permit activity has increased, reflecting the broader trend of increased construction activity in the region. $0 $200 $400 $600 $800 $1,000 $1,200 JanFebMarAprMayJunJulAugSepOctNovDec Th o u s a n d s Building Permits 2012 budget 2012 actual to date 2011 actual 7 Monthly Financial Report July 2012 Business License revenues totaled $126,000 and exceeded budget due to the timing of payments. The revenue for the year is billed out late in December and most payments are received between January and February. This revenue source is expected to level out for the remainder of the year until December when collections increase as payments for 2013 are received. $0 $50 $100 $150 $200 $250 JanFebMarAprMayJunJulAugSepOctNovDec Th o u s a n d s Business Licenses 2012 budget 2012 actual to date 2011 actual Intergovernmental includes Grants (Direct & Indirect Federal, State and Local); State shared revenues and compact revenue from the Muckleshoot Indian Tribe. Collections totaled $2.2 million and is below budget by $64,000 or 2.9%. State shared revenue includes June 2012 disbursement of $188,000 by the State of Washington from the sale of state owned liquor stores2. 201120122012 Revenue ActualBudgetActualAmount% ChangeAmount% Change Federal Grants 296,183 384,392 139,639 (156,544) -52.9%(244,753) -63.7% State Grants 79,925 35,600 40,141 (39,785) -49.8%4,541 12.8% Interlocal Grants 3,151 65,300 2,500 (651) -20.7%(62,800) -96.2% State Shared Revenue 1,545,646 1,284,180 1,458,700 (86,945) -5.6%174,520 13.6% Muckleshoot Casino Emerg.549,012 470,500 528,469 (20,543) -3.7%57,969 12.3% Intergovernmental Service 11,880 - 6,271 (5,609) -47.2%6,271 N/A YTD Total 2,485,797 2,239,972 2,175,720 (310,076) -12.5%(64,252) -2.9% Year to Date through July Intergovernmental 2012 vs. 20112012 vs. Budget 2 The City of Auburn received $188,230 from the sale of State owned liquor stores in the month of June 2012 and is reflected in this report. In addition, the City’s share of liquor excise taxes and liquor profits will be revised starting July 1. Liquor excise taxes will be suspended for a twelve month period and will be reinstated at a lowered level starting July 1, 2013 while liquor profits will be reduced to 2011 levels starting July 1. These changes were made as a result of the State Legislature’s effort to balance the State budget during the 2012 legislative session. 8 Monthly Financial Report July 2012 Note: 2012 liquor excise tax and liquor profit budget revised to reflect changes in State distributions as noted in footnote above. 201120122012 Revenue ActualBudgetActualAmountPercentageAmountPercentage Trial Court Improvements11,234 12,300 11,316 82 0.7%(984) -8.00% Court Interpreter Program6,643 6,960 10,872 4,229 63.67%3,912 56.21% Motor Vehicle Fuel Tax 830,868 542,800 551,132 (279,736) -33.7%8,332 1.5% Criminal Justice -High Crime110,880 - 110,246 (634) -0.6%110,246 N/A Criminal Justice -Population11,595 56,100 11,853 258 2.2%(44,247) -78.9% Criminal Justice -Spec. Prog.43,777 41,750 44,619 842 1.9%2,869 6.9% State DUI 11,338 5,300 9,999 (1,339) -11.8%4,699 88.7% Fire Insurance Premium Tax 258 65,000 63,205 62,946 24361.0%(1,795) -2.76% Liquor Excise Tax 249,869 159,470 260,420 10,551 4.2%100,950 63.3% Liquor Profits 269,184 394,500 385,039 115,855 43.0%(9,461) -2.40% YTD Total 1,545,646 1,284,180 1,458,700 (86,945) -5.6%174,520 13.6% Year to Date through July State Shared Revenues 2012 vs. 20112012 vs. Budget Charges for Services consists of general governmental services, public safety, development service fees and cultural & recreation fees and totaled $1.3 million. Development service fees and culture and recreation fees make up 84% of the revenue within this category. Development services revenues totaled $500,000 compared to budget of $307,000 due to stronger revenues from development plan-check fees. Culture and recreation fees are beginning to improve over 2011 levels, reflecting increased registrations for summer classes and camps. 201120122012 Revenue ActualBudgetActualAmountPercentageAmountPercentage General Government 48,629 38,200 69,590 20,961 43.10%31,390 82.17% Public Safety 146,366 137,200 144,004 (2,362) -1.6%6,804 5.0% Development Services284,470 306,900 500,457 215,988 75.9%193,557 63.1% Culture & Recreation 537,906 627,300 583,341 45,435 8.4%(43,959) -7.0% YTD Total 1,017,371 1,109,600 1,297,393 280,021 27.5%187,793 16.9% Year to Date through July Charges for Services by Type 2012 vs. 20112012 vs. Budget 9 Monthly Financial Report July 2012 $0 $100 $200 $300 $400 $500 $600 $700 JanFebMarAprMayJunJulAugSepOctNovDec Th o u s a n d s Development Service Fees 2012 budget 2012 actual to date 2011 actual $0 $100 $200 $300 $400 $500 $600 $700 $800 $900 $1,000 JanFebMarAprMayJunJulAugSepOctNovDec Th o u s a n d s Culture & Recreation 2012 budget 2012 actual to date 2011 actual 10 Monthly Financial Report July 2012 Fines & Penalties totaled $960,000 and is slightly under budget by 1.1% due primarily to a decline in revenue from parking infractions. 201120122012 Month ActualBudgetActualAmountPercentageAmountPercentage Civil Penalties 11,698 8,800 10,101 (1,597) -13.7%1,301 14.8% Civil Infraction Penalties 409,753 353,400 373,817 (35,936) -8.8%20,417 5.8% Red Light Photo Enforcement593,511 342,100 359,852 (233,659) -39.4%17,752 5.2% Parking Infractions 105,807 102,800 67,666 (38,141) -36.0%(35,134) -34.2% Criminal Traffic Misdemeanor49,943 68,800 58,956 9,013 18.0%(9,844) -14.3% Criminal Non-Traffic Fines53,932 56,900 55,225 1,293 2.4%(1,675) -2.9% Criminal Costs 8,612 6,300 9,677 1,065 12.4%3,377 53.6% Non-Court Fines & Penalties53,275 31,700 24,877 (28,398) -53.3%(6,823) -21.5% YTD Total 1,286,530 970,800 960,170 (326,360) -25.4%(10,630) -1.1% Year to Date through July Fines & Forfeits by Type 2012 vs. 20112012 vs. Budget $0.0 $0.5 $1.0 $1.5 $2.0 $2.5 JanFebMarAprMayJunJulAugSepOctNovDec Mi l l i o n s Fines & Penalties 2012 budget 2012 actual to date 2011 actual 11 Monthly Financial Report July 2012 $0.0 $0.1 $0.2 $0.3 $0.4 $0.5 $0.6 $0.7 $0.8 $0.9 JanFebMarAprMayJunJulAugSepOctNovDec Mi l l i o n s Photo Enforcement 2012 budget 2012 actual to date 2011 actual Miscellaneous revenues include interest and other investment earnings, rents, leases & concessions, contributions & donations and other miscellaneous income. Revenues in this category totaled $350,000 and exceed budget by $34,000. 201120122012 Month ActualBudgetActualAmountPercentageAmountPercentage Interest & Investments 47,768 65,000 53,220 5,452 11.4%(11,780) -18.1% Rents & Leases 253,993 209,000 218,536 (35,457) -14.0%9,536 4.6% Contributions & Donations 31,841 11,900 32,006 166 0.5%20,106 169.0% Other Miscellaneous Revenue46,655 30,200 46,114 (540) -1.2%15,914 52.7% YTD Total 380,257 316,100 349,876 (30,380) -8.0%33,776 10.7% Miscellaneous Revenues by Type Year to Date through July 2012 vs. 20112012 vs. Budget 12 Monthly Financial Report July 2012 Real Estate Excise Tax (REET) revenue is receipted into the Capital Improvement Projects Fund and is used for governmental capital projects. REET revenue totaled $768,000 and is $144,000 below budget. $0.0 $0.2 $0.4 $0.6 $0.8 $1.0 $1.2 $1.4 $1.6 JanFebMarAprMayJunJulAugSepOctNovDec Mi l l i o n s Real Estate Excise Tax 2012 budget 2012 actual to date 2011 actual 13 Monthly Financial Report July 2012 Enterprise Funds The following table provides an analysis of the City’s Enterprise funds – showing 2012 revenues and expenditures by fund. WaterSewerStormSolid WasteAirportCemeteryGolf OPERATING REVENUES Charges for Services 5,106,743 2,742,331 4,284,281 6,725,563 9,121 460,328 597,865 Sewer Metro Service Revenue - 7,431,959 - - - - - Rents, Leases, Concessions & Other - - - - 347,133 - 212,259 TOTAL OPERATING REVENUES 5,106,743 10,174,290 4,284,281 6,725,563 356,253 460,328 810,123 OPERATING EXPENSES: Administration 1,418,919 1,117,588 1,416,488 438,964 316,309 168,049 130,450 Operations & Maintenance 2,379,504 1,485,305 1,569,668 714,830 8,503 365,769 724,728 Waste Management Payments - - - 4,657,763 - - - Sewer Metro Services - 7,292,073 - - - - - Depreciation & Amortization 1,268,162 1,024,352 866,869 10,978 230,527 43,613 183,487 TOTAL OPERATING EXPENSES 5,066,585 10,919,318 3,853,025 5,822,535 555,339 577,431 1,038,665 OPERATING INCOME (LOSS)40,158 (745,028) 431,256 903,028 (199,086) (117,103) (228,542) NON-OPERATING REVENUES & EXPENSES Interest Revenue 26,409 24,409 10,835 444 1,275 203 418 Other Non Operating Revenue 109,234 39,895 35,988 73,926 545 13,995 9,846 Other Non Operating Expense (28,816) (20,541) - - (25,238) (11,134) - TOTAL NON-OPERATING REVENUES (EXPENSES)106,827 43,763 46,823 74,370 (23,417) 3,064 10,264 146,985 (701,266) 478,080 977,398 (222,503) (114,039) (218,278) Contributions 259,374 171,389 254,435 - - - - Transfers In - - - - - 200,000 29,895 Transfers Out (50,000) (50,000) (50,000) - - - - TOTAL CONTRIBUTIONS & TRANSFERS 209,374 121,389 204,435 - - 200,000 29,895 CHANGE IN FUND BALANCE 356,359 (579,877) 682,515 977,398 (222,503) 85,961 (188,383) BEGINNING FUND BALANCE January 1, 201263,028,695 73,274,006 47,772,204 760,681 9,731,158 814,709 5,144,962 ENDING FUND BALANCE July 31, 2012 63,385,054 72,694,130 48,454,719 1,738,079 9,508,655 900,671 4,956,579 INCOME (LOSS) BEFORE CONTRIBUTIONS & TRANSFERS 14 Monthly Financial Report July 2012 The following table presents the Working Capital Statements for the City’s Enterprise funds. Working capital is generally defined as the difference between current assets and current liabilities. WaterSewerStormSolid WasteAirportCemeteryGolf OPERATING REVENUES Charges for Services 5,106,743 2,742,331 4,284,281 6,725,563 9,121 460,328 597,865 Sewer Metro Service Revenue - 7,431,959 - - - - - Rents, Leases, Concessions & Other - - - - 347,133 - 212,259 TOTAL OPERATING REVENUES 5,106,743 10,174,290 4,284,281 6,725,563 356,253 460,328 810,123 OPERATING EXPENSES: Salaries & Wages 1,192,568 785,752 1,066,466 242,279 11,125 261,793 329,593 Benefits 529,672 340,336 466,752 105,050 3,744 126,513 157,043 Supplies 88,028 26,829 29,170 41,514 - 76,430 175,167 Other Service Charges 1,313,111 1,002,628 633,447 562,291 309,943 30,517 98,871 Intergovernmental Services - - 9,984 95,033 - - - Waste Management Payments - - - 4,657,763 - - - Sewer Metro Services - 7,292,073 - - - - - Interfund Operating Rentals/Supplies 675,044 447,349 776,626 107,625 - 38,563 94,507 Other Expenses - - 3,710 - - - - Depreciation & Amortization 1,268,162 1,024,352 866,869 10,978 230,527 43,613 183,487 TOTAL OPERATING EXPENSES 5,066,585 10,919,319 3,853,024 5,822,534 555,339 577,429 1,038,668 OPERATING INCOME (LOSS)40,158 (745,029) 431,257 903,029 (199,086) (117,102) (228,545) NON-OPERATING REVENUES & EXPENSES Interest Revenue 26,409 24,409 10,835 444 1,275 203 418 Contributions - 1,310 - 73,166 - 12,606 9,846 Other Non Operating Revenue 109,234 38,585 35,988 760 545 1,388 - Debt Service Interest (28,816) (20,541) - - (25,238) (11,134) - TOTAL NON-OPERATING REVENUES (EXPENSES)106,827 43,763 46,823 74,370 (23,417) 3,064 10,264 Plus Items Not Effecting Working Capital Depreciation 1,268,162 1,024,352 866,869 10,978 230,527 43,613 183,487 1,415,147 323,086 1,344,950 988,377 8,024 (70,425) (34,793) Increase in Contributions -System Development256,168 171,389 254,435 - - - - Increase in Contributions -Area Assessments3,206 - - - - - - Increase in Contributions -Other Governments - - - - - - - Operating Transfers In - - - - - 200,000 29,895 Increase in Restricted Net Assets 16,065 47,414 - - (4,633) - Decrease in Long term Receivables - 45,000 - - - - - Increase in Deferred Credits - - - - 6,440 - - TOTAL RESOURCES OTHER THAN OPERATIONS275,439 263,803 254,435 - 1,806 200,000 29,895 Net Change in Restricted Net Assets 272,777 142,297 129,039 - (5,214) - (24,756) Increase in Fixed Assets - Salaries 74,494 58,944 32,647 - - - - Increase in Fixed Assets - Benefits 30,143 22,797 12,318 - - - - Increase in Fixed Assets - Site Improvements38,175 - - - 14,466 - - Increase in Fixed Assets - Equipment 80,548 - - - - - - Increase in Fixed Assets - Construction 2,513,292 890,706 551,856 - - - - Operating Transfers Out 50,000 50,000 50,000 - - - - Debt Service Principal 435,568 288,262 - - - - - TOTAL USES OTHER THAN OPERATIONS 3,494,997 1,453,006 775,860 - 9,252 - (24,756) NET CHANGE IN WORKING CAPITAL (1,804,411) (866,117) 823,524 988,377 579 129,575 19,858 BEGINNING WORING CAPITAL January 1, 201216,945,811 12,806,527 9,102,000 632,263 961,633 71,820 68,320 ENDING WORKING CAPITAL July 31, 2012 15,141,400 11,940,410 9,925,524 1,620,640 962,212 201,395 88,178 NET CHANGE IN WORKING CAPITAL (1,804,411) (866,117) 823,524 988,377 579 129,575 19,858 NET WORKING CAPITAL FROM OPERATIONS 15 Monthly Financial Report July 2012 The Water Utility ended with $40,200 in net income and compares to a $27,600 net operating loss the previous month. The financial position of the water utility is expected to continue improving with seasonal water sales. - 200,000 400,000 600,000 800,000 1,000,000 1,200,000 JanFebMarAprMayJunJulAugSepOctNovDec Water Revenues ($) vs Water Sold (ccf) 2011 -Present 2011 Water Sales ($) 2012 Water Sales ($) 2011 Water Sold (ccf) 2012 Water Sold (ccf) The Sewer Utility ended the period with a $745,000 net operating loss while the Stormwater Utility ended with $431,300 in net income. The number of rounds played at Auburn Golf Course (AGC) in July was 7,531 as compared to 8,058 rounds for the same month last year. The AGC ended with a net operating loss of $228,500 as compared to $296,100 for the previous month. 0 50,000 100,000 150,000 200,000 250,000 300,000 350,000 JanFebMarAprMayJunJulAugSepOctNovDec Golf Course Operating Revenues by Month (2012 vs 2011) 2012 Monthly Budget 2012 Actual 16 Monthly Financial Report July 2012 The Cemetery Fund ended with a $117,100 net operating loss as compared to a $145,000 net operating loss the previous month; reflecting an increase in lot and liner sales in July. 0 20,000 40,000 60,000 80,000 100,000 120,000 140,000 JanFebMarAprMayJunJulAugSepOctNovDec Cemetery Operating Revenues by Month (2012 vs 2011) 2012 Monthly Budget 2012 Actual 2011 Actual 17 Monthly Financial Report July 2012 Internal Service Funds The following table provides an analysis of the City’s Internal Service funds – showing 2012 revenues and expenditures by fund. InformationEquipment InsuranceFacilities ServicesRental OPERATING REVENUES: Interfund Charges for Services - 2,004,975 2,412,144 1,749,790 Rents, Leases, Concessions & Other - 89,794 52,992 - TOTAL OPERATING REVENUES - 2,094,769 2,465,136 1,749,790 OPERATING EXPENSES: Administration 545,185 - - 410,735 Operations & Maintenance - 1,296,014 2,502,009 829,401 Depreciation & Amortization - - 337,571 448,370 TOTAL OPERATING EXPENSES 545,185 1,296,014 2,839,580 1,688,506 OPERATING INCOME (LOSS)(545,185) 798,755 (374,444) 61,284 NON-OPERATING REVENUES & EXPENSES Interest Revenue 1,657 2,240 3,450 10,626 Other Non Operating Revenue - 7,292 - 553 Gain/Loss on Sale of Fixed Assets - - - 19,449 Other Non Operating Expense - - - - TOTAL NON-OPERATING REVENUES (EXPENSES)1,657 9,532 3,450 30,628 INCOME (LOSS) BEFORE CONTRIBUTIONS & TRANSFERS (543,528) 808,287 (370,994) 91,912 Contributions - - 3,230 72,714 Transfers In - 304,070 - - Transfers Out - (376,250) - (7,000) TOTAL CONTRIBUTIONS & TRANSFERS - (72,180) 3,230 65,714 CHANGE IN FUND BALANCE (543,528) 736,107 (367,764) 157,626 BEGINNING FUND BALANCE January 1, 2012 2,184,680 1,570,419 4,350,183 10,135,919 ENDING FUND BALANCE July 31, 2012 1,641,152 2,306,526 3,982,419 10,293,545 18 Monthly Financial Report July 2012 The following table presents the Working Capital Statements for the City’s Internal Service funds. Working capital is generally defined as the difference between current assets and current liabilities. InformationEquipment InsuranceFacilities ServicesRental OPERATING REVENUES: Interfund Charges for Services - 2,004,975 2,412,144 1,749,790 Rents, Leases, Concessions & Other - 89,794 52,992 TOTAL OPERATING REVENUES - 2,094,769 2,465,136 1,749,790 OPERATING EXPENSES: Salaries & Wages - 386,740 769,242 251,005 Benefits - 167,210 312,677 98,783 Supplies - 65,998 192,499 532,394 Other Service Charges 545,185 618,960 1,058,961 233,200 Interfund Operating Rentals/Supplies - 57,106 168,630 124,753 Depreciation & Amortization - - 337,571 448,370 TOTAL OPERATING EXPENSES 545,185 1,296,014 2,839,580 1,688,506 OPERATING INCOME (LOSS)(545,185) 798,755 (374,444) 61,285 NON-OPERATING REVENUES & EXPENSES Interest Revenue 1,657 2,240 3,450 10,626 Other Non Operating Revenue - 7,292 - 553 Gain/Loss on Sale of Fixed Assets - - - 19,449 Other Non Operating Expense - - - - TOTAL NON-OPERATING REVENUES (EXPENSES)1,657 9,532 3,450 30,628 Plus Items Not Effecting Working Capital Depreciation - - 337,571 448,370 (543,528) 808,287 (33,423) 540,283 Increase in Contributions -Other Governments - - - - Increase in Contributions -Other Funds - - 3,230 72,714 Operating Transfers In - 304,070 - - TOTAL RESOURCES OTHER THAN OPERATIONS - 304,070 3,230 72,714 Net Change in Restricted Net Assets - - 3,230 17,693 Increase in Fixed Assets - Site Improvements - - - 18,493 Increase in Fixed Assets - Equipment - 36,212 315,700 987,778 Increase in Fixed Assets - Construction - 307,473 36,871 - Operating Transfers Out - 376,250 - 7,000 TOTAL USES OTHER THAN OPERATIONS - 719,935 355,801 1,030,964 NET CHANGE IN WORKING CAPITAL (543,528) 392,422 (385,993) (417,967) BEGINNING WORING CAPITAL January 1, 2012 2,184,680 1,622,449 3,118,686 5,793,165 ENDING WORKING CAPITAL July 31, 2012 1,641,152 2,014,871 2,732,693 5,375,198 NET CHANGE IN WORKING CAPITAL (543,528) 392,422 (385,993) (417,967) NET WORKING CAPITAL FROM OPERATIONS 19 Monthly Financial Report July 2012 Operating expenses within the Insurance Fund represents the premium cost-pool that will be allocated monthly to other City funds over the course of 2012. As a result, this balance will gradually diminish each month throughout the entire year. The Information Services Fund ended with a net operating loss, No significant variances are reported in the Facilities Fund or Equipment Rental Fund. Both funds have had sufficient revenues to cover year-to-date expenses. 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. 20 SALES TAX SUMMARY JULY 2012 SALES TAX DISTRIBUTIONS (FOR NOVEMBER - MAY 2012 RETAIL ACTIVITY) 2011 Annual Total 2011 YTD 2012 YTD YTD 2011 Annual Total 2011 YTD 2012 YTD YTD NAICS CONSTRUCTION (Nov '10-Oct '11)(Nov '10-May '11)(Nov '11-May '12)% Diff NAICS AUTOMOTIVE (Nov '10-Oct '11)(Nov '10-May '11)(Nov '11-May '12)% Diff 236 Construction of Buildings 582,840 298,351 230,658 -22.7%441 Motor Vehicle and Parts Dealer 2,560,962 1,471,963 1,590,515 8.1% 237 Heavy and Civil Construction 108,727 49,863 67,868 36.1%447 Gasoline Stations 224,459 124,970 125,963 0.8% 238 Specialty Trade Contractors 604,245 338,501 322,365 -4.8%TOTAL AUTOMOTIVE 2,785,421$ 1,596,932$ 1,716,478$ 7.5% TOTAL CONSTRUCTION 1,295,813$ 686,714$ 620,890$ -9.6%Overall Change from Previous Year 119,545$ Overall Change from Previous Year (65,824)$ 2011 Annual Total 2011 YTD 2012 YTD YTD 2011 Annual Total 2011 YTD 2012 YTD YTD NAICS RETAIL TRADE (Nov '10-Oct '11)(Nov '10-May '11)(Nov '11-May '12)% Diff NAICS MANUFACTURING (Nov '10-Oct '11)(Nov '10-May '11)(Nov '11-May '12)% Diff 442 Furniture and Home Furnishings 218,335 126,870 126,176 -0.5% 311 Food Manufacturing 2,674 1,477 1,926 30.4%443 Electronics and Appliances 126,870 81,672 82,188 0.6% 312 Beverage and Tobacco Products 3,864 2,012 2,732 35.8%444 Building Material and Garden 382,504 202,997 223,349 10.0% 313 Textile Mills 959 342 67 -80.5%445 Food and Beverage Stores 330,776 187,832 193,947 3.3% 314 Textile Product Mills 2,625 1,136 3,406 199.7%446 Health and Personal Care Store 148,387 88,836 89,963 1.3% 315 Apparel Manufacturing 2,519 2,391 194 -91.9%448 Clothing and Accessories 754,407 448,862 443,778 -1.1% 316 Leather and Allied Products 175 154 55 -64.2%451 Sporting Goods, Hobby, Books 126,042 76,726 72,795 -5.1% 321 Wood Product Manufacturing 24,075 12,971 12,683 -2.2%452 General Merchandise Stores 967,627 603,024 587,386 -2.6% 322 Paper Manufacturing 11,026 8,940 2,238 -75.0%453 Miscellaneous Store Retailers 489,259 275,216 263,082 -4.4% 323 Printing and Related Support 38,511 22,781 17,440 -23.4%454 Nonstore Retailers 235,923 137,705 148,376 7.7% 324 Petroleum and Coal Products 9,771 4,958 4,178 -15.7%TOTAL RETAIL TRADE 3,780,129$ 2,229,739$ 2,231,040$ 0.1% 325 Chemical Manufacturing 7,937 4,098 3,665 -10.6%Overall Change from Previous Year 1,301$ 326 Plastics and Rubber Products 9,777 5,921 5,354 -9.6% 327 Nonmetallic Mineral Products 16,218 7,696 9,141 18.8% 331 Primary Metal Manufacturing 452 169 1,491 782.1%2011 Annual Total 2011 YTD 2012 YTD YTD 332 Fabricated Metal Product Manuf 19,661 11,448 7,975 -30.3%NAICS SERVICES (Nov '10-Oct '11)(Nov '10-May '11)(Nov '11-May '12)% Diff 333 Machinery Manufacturing 14,242 8,870 7,512 -15.3%51*Information 481,043 235,278 228,625 -2.8% 334 Computer and Electronic Produc 16,776 12,413 5,169 -58.4%52*Finance and Insurance 65,518 40,283 21,620 b -46.3% 335 Electric Equipment, Appliances 780 455 281 -38.2%53*Real Estate, Rental, Leasing 303,750 165,414 178,211 7.7% 336 Transportation Equipment Man 362,149 237,068 64,679 a -72.7%541 Professional, Scientific, Tech 174,718 107,899 97,722 -9.4% 337 Furniture and Related Products 13,135 6,942 10,501 51.3%551 Company Management 351 107 9 -91.2% 339 Miscellaneous Manufacturing 25,531 15,722 14,193 -9.7%56*Admin. Supp., Remed Svcs 294,603 170,869 159,622 -6.6% TOTAL MANUFACTURING 582,858$ 367,965$ 174,878$ -52.5%611 Educational Services 52,563 28,814 28,338 -1.7% Overall Change from Previous Year (193,087)$ 62*Health Care Social Assistance 40,737 20,629 18,774 -9.0% 71*Arts and Entertainment 148,629 101,069 105,696 4.6% 72*Accomodation and Food Svcs 838,924 468,425 518,471 10.7% 2011 Annual Total 2011 YTD 2012 YTD YTD 81*Other Services 389,241 226,098 227,887 0.8% NAICS TRANSPORTATION AND WAREHOUSING (Nov '10-Oct '11)(Nov '10-May '11)(Nov '11-May '12)% Diff 92*Public Administration 92,163 52,249 82,459 57.8% 481 Air Transportation 24 24 - -100.0%TOTAL SERVICES 2,882,241$ 1,617,135$ 1,667,434$ 3.1% 482 Rail Transportation 17,831 10,831 6,976 -35.6%Overall Change from Previous Year 50,300$ 484 Truck Transportation 36,261 32,676 6,798 -79.2% 485 Transit and Ground Passengers 68 65 268 311.6% 488 Transportation Support 18,083 10,688 9,852 -7.8%2011 Annual Total 2011 YTD 2012 YTD YTD 491 Postal Service 202 118 154 30.6%NAICS MISCELLANEOUS (Nov '10-Oct '11)(Nov '10-May '11)(Nov '11-May '12)% Diff 492 Couriers and Messengers 1,492 745 336 -54.9%000 Unknown 1,958 383 1 -99.7% 493 Warehousing and Storage 3,121 1,800 3,800 111.1%111-115 Agriculture, Forestry, Fishing 7,355 6,315 1,547 -75.5% TOTAL TRANSPORTATION 77,083$ 56,947$ 28,184$ -50.5%211-221 Mining & Utilities 21,830 8,835 17,858 102.1% Overall Change from Previous Year (28,763)$ 999 Unclassifiable Establishments 192,496 140,993 15,967 -88.7% TOTAL SERVICES 223,639$ 156,526$ 35,373$ -77.4% Overall Change from Previous Year (121,153)$ 2011 Annual Total 2011 YTD 2012 YTD YTD NAICS WHOLESALE TRADE (Nov '10-Oct '11)(Nov '10-May '11)(Nov '11-May '12)% Diff 423 Wholesale Trade, Durable Goods 1,095,905 647,784 654,100 1.0%GRAND TOTAL 12,887,267$ 7,449,762$ 7,215,550$ 424 Wholesale Trade, Nondurable 150,480 86,010 84,319 -2.0%Overall Change from Previous Year (234,212)$ -3.1% 425 Wholesale Electronic Markets 13,698 4,010 2,854 -28.8% TOTAL WHOLESALE 1,260,083$ 737,804$ 741,272$ 0.5% Overall Change from Previous Year 3,468$ a. Wa. State Dept of Revenue audit adjustment to sales tax returns for period Nov 2011 (adjustment: -$73,971). b. Wa. State Dept of Revenue audit adjustment to sales tax returns for period Dec 2011 (adjustment: -$20,014). 07/25/12 file:Monthly Sales Tax Report.xls Prepared by Auburn Finance Department 21 Investment PurchasePurchaseMaturityYield to Type Date Price DateMaturity State Investment PoolVarious 83,183,460$ Various 0.18% KeyBank Money MarketVarious 13,649,782Various 0.15% US Treasury 05/04/1990 57,75005/15/20165.72% FHLMC 12/19/20112,000,00012/19/20141.000% Total Cash & Investments 98,890,992$ 0.193% Investment Mix% of Total State Investment Pool 84.1%Current 6-month treasury rate0.15% KeyBank Money Market 13.8%Current State Pool rate0.18% US Treasury 0.1%KeyBank Money Market0.15% FHLMC 2.0%Blended Auburn rate0.19% FNMA 0.0% 100.0% City of Auburn Investment Portfolio Summary July 31, 2012 Summary 22