HomeMy WebLinkAboutSeptember 2012
Agenda Subject: September 2012 Financial Report
Date: 11/07/2012
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
Citywide 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 September status report is based on financial data available as of October 16, 2012. Sales tax
information represents business activity that occurred in July 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.
The General Fund is on target with expectations for the year and is expected to end 2012 with a fund
balance of approximately $12.1 million.
Revenue collections totaled $36.9 million and are running ahead of budget-to-date of $34.5 million due
primarily to increased revenues from building permits and development fees. The month of September
saw several large one-time fees related to new construction. These included building permit fees and
development service fees related to the Outlet Collection Seattle as well as several housing
developments including Pinnacle Estates and the Kersey III subdivision.
Expenses totaled $39.9 million and are running below budget of $43.8 million and compare to
expenditures of $36.4 million for the same period last year. 2012 departmental expenses are below
budget primarily due to the timing of payments to SCORE, earlier staff vacancies, and continued vigilance
in monitoring general expenditures.
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 September, the Water fund ended with operating income of $577,300; the Sewer fund
ended this period with a $777,200 operating loss; and the Storm Drainage fund ended with an operating
income of $437,900. All three utilities improved their operating position for the year to-date as compared
to the same period last year as a result of the Council approved rate increases.
The Golf Course ended the period with an operating loss of $112,400. Cemetery revenues at the end of
September totaled $625,700 and were below expenses of $750,800, resulting in year to date operating
loss of $125,000 compared to an operating loss of $152,100 for the same period last year.
1
Internal Service Funds:
Internal Service Funds provide services to other City departments and include functions such as
Insurance, Facilities, Information Services, and Equipment Rental. By the end of the year, revenues
received from charges to internal client departments are projected to be sufficient to meet expenses.
Investment Portfolio:
The City’s total cash and investments at the end of September were $89.2 million compared to $90.5
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: November 19, 2012 Item Number:
2
(1) The anticipated Streamlined Sales Tax for 2012 is $1.96 million. The year to date actual Sales Tax amount includes
$1,412,688 Streamlined Sales Tax Mitigation received from the State through September 2012.
General Fund 2011
Summary of Sources and Uses Annual
Budget YTD Budget YTD ActualYTD Actual Amount Percentage
OPERATING REVENUES
Property Tax 12,562,565 6,854,900 6,967,458 6,890,056 112,558 1.6%
Sales Tax 12,267,000 9,145,300 9,433,961 9,565,987 288,661 3.2%
Sales Tax - Annexation Credit 1,383,730 1,022,830 1,114,386 1,090,019 91,556 9.0%
Criminal Justice Sales Tax 1,212,900 910,200 1,029,190 1,015,358 118,990 13.1%
Brokered Natural Gas Tax 260,000 208,900 251,183 242,562 42,283 20.2%
City Utilities Tax 2,620,200 1,920,800 2,170,842 1,810,689 250,042 13.0%
Admissions Tax 360,000 271,700 267,130 268,754 (4,570) -1.7%
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 1,526,400 1,438,718 1,519,807 (87,682) -5.7%
Garbage Tax (external)150,000 115,500 87,149 114,577 (28,351) -24.5%
Leasehold Excise Tax 50,000 28,800 28,762 29,689 (38) -0.1%
Gambling Excise Tax 331,500 248,400 197,017 187,510 (51,383) -20.7%
Taxes sub-total 38,559,715 26,521,350 27,087,100 26,799,012 565,750 2.1%
Business License Fees 200,000 109,300 129,722 121,118 20,422 18.7%
Building Permits 700,000 558,600 1,231,371 909,263 672,771 120.4%
Other Licenses & Permits 229,000 176,600 293,723 363,615 117,123 66.3%
Intergovernmental (Grants, etc.) - (1)5,497,433 4,088,032 4,306,486 4,399,335 218,454 5.3%
Charges for Services:
General Government Services 64,600 48,900 92,944 64,095 44,044 90.1%
Public Safety 223,500 168,800 183,463 180,716 14,663 8.7%
Development Services Fees 627,000 465,800 1,048,474 418,737 582,674 125.1%
Culture and Recreation 920,000 769,500 716,692 657,886 (52,808) -6.9%
Fines and Forfeits 1,499,800 1,191,600 1,200,608 1,556,889 9,008 0.8%
Fees/Charges/Fines sub-total 9,961,333 7,577,132 9,203,482 8,671,652 1,626,350 21.5%
Interests and Other Earnings 115,000 84,100 64,288 59,578 (19,812) -23.6%
Rents, Leases and Concessions 311,000 246,400 252,623 281,328 6,223 2.5%
Contributions and Donations 20,500 14,700 40,978 39,184 26,278 178.8%
Other Miscellaneous 46,200 38,400 98,817 87,038 60,417 157.3%
Transfers In 17,000 17,000 17,000 1,078,439 - 0.0%
Insurance Recoveries- Capital & Operating 50,000 33,587 105,027 133,199 71,440 212.7%
Other Revenues sub-total 559,700 434,187 578,732 1,678,765 144,545 33.3%
Total Operating Revenues 49,080,748 34,532,669 36,869,314 37,149,430 2,336,645 6.8%
Operating Expenditures
Council & Mayor 869,890 640,290 660,683 576,044 (20,393) -3.2%
Municipal Court & Probation 3,399,260 2,457,360 2,241,073 2,211,485 216,287 8.8%
Human Resources 942,164 691,330 643,764 591,320 47,566 6.9%
Finance 1,235,590 925,790 883,397 844,008 42,393 4.6%
City Attorney 1,699,500 1,284,100 1,219,363 1,168,704 64,737 5.0%
Planning 3,883,620 2,822,820 2,839,604 2,656,437 (16,784) -0.6%
Community & Human Services 1,160,360 842,460 734,345 688,870 108,115 12.8%
Jail - SCORE 4,764,750 3,483,850 2,770,772 4,002,853 713,078 20.5%
Police 20,682,698 14,981,198 13,493,388 13,254,757 1,487,810 9.9%
Engineering 2,718,870 1,977,070 1,863,700 1,650,112 113,370 5.7%
Parks and Recreation 7,598,230 5,688,930 5,479,019 5,278,625 209,911 3.7%
Streets 3,415,280 2,346,380 2,075,370 1,812,491 271,010 11.6%
Non-Departmental 7,130,550 5,615,350 4,968,921 1,617,172 646,429 11.5%
Total Operating Expenditures 59,500,762 43,756,928 39,873,399 36,352,877 3,883,529 8.9%
2012 2012 YTD Budget vs. Actual
Favorable (Unfavorable)
3
Overview
This financial overview reflects the City’s overall financial position for the fiscal period ending
September 30, 2012 and represents financial data available as of October 16, 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 $36.9 million and were above budget by 6.8%, or $2.3 million.
This period’s highlights include:
- Tax revenues totaled $27.1 million and were $566,000 above budget.
- Sales taxes totaled $9.4 million and were $289,000 above budget.
- Revenue from Fees/Charges/Fines totaled $9.2 million and was $1.6 million above budget
due to stronger than budgeted revenue from development activity.
- Other revenues totaled $579,000 and were 33% or $145,000 above budget.
General Fund expenses totaled $39.9 million compare to $36.4 million for the same period last
year, reflecting one-time transfers to Cemetery, Golf Course debt and Cumulative Reserve funds.
Departmental expenditures in 2012 continue to run under budget due to earlier vacancies, timing
of SCORE payments, and continued vigilance in monitoring general spending.
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 $7.0 million and exceeds budget by 1.6% or $113,000.
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
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
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Property Taxes
2012 budget
2012 actual to date
2011 actual
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Sales taxes totaled $9.4 million and exceeds budget by $289,000.
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.
As shown above, sales taxes by business sector totaled $9.4 million and are 1.4% 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.
$0.0
$2.0
$4.0
$6.0
$8.0
$10.0
$12.0
$14.0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
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Sales & Use Tax
2012 budget
2012 actual to date
2011 actual
20112012
Component Group ActualActual Amount Percentage
New Construction 916,284 812,943 (103,341) -11.3%
Manufacturing 456,753 268,902 (187,851) -41.1%
Transportation & Warehousing 62,809 44,681 (18,128) -28.9%
Wholesale Trade 921,824 983,135 61,310 6.7%
Automotive 2,073,254 2,231,343 158,088 7.6%
Retail Trade 2,839,844 2,897,396 57,552 2.0%
Services 2,111,271 2,162,233 50,962 2.4%
Miscellaneous 198,398 46,065 (152,333) -76.8%
YTD Total 9,580,438 9,446,697 (133,741) -1.4%
Change from 2011
Year to Date through September
Comparison of Sales Tax Collections by SIC Group
5
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). The following table
presents utility tax collections by source:
$0.0
$1.0
$2.0
$3.0
$4.0
$5.0
$6.0
$7.0
$8.0
$9.0
$10.0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
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Utility Tax
2012 budget
2012 actual to date
2011 actual
201120122012
Month Actual Budget Actual Amount Percentage Amount Percentage
City Interfund Utility Taxes 1,810,689 1,920,800 2,170,842 360,154 19.9%250,042 13.0%
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 1,519,807 1,526,400 1,438,718 (81,089) -5.3%(87,682) -5.7%
Solid Waste 114,577 115,500 87,149 (27,428) -23.9%(28,351) -24.5%
YTD Total 6,856,652 7,246,720 7,145,629 288,977 4.2%(101,091) -1.4%
Year to Date through September
Utility Tax by Type
2012 vs. 2011 2012 vs. Budget
6
Cable TV Franchise Fees exceed budget by $77,000 and are comparable to 2011 levels. This
revenue source will outperform budget by the end of 2012 and end at levels similar to the
previous year.
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.
Year to date building permit revenues were $1.2 million and exceeded both budget and prior
year levels of $559,000 and $909,000, respectively. September revenue activity included over
$20,000 in building permit revenue generated by The Outlet Collection Seattle (formerly known
as The Supermall of the Great Northwest), $16,000 in revenue generated from Pinnacle Estates
and over $15,000 generated from the Kersey III subdivision. In general, building permit activity
has increased, reflecting the broader trend of increased construction activity in the region.
$0
$100
$200
$300
$400
$500
$600
$700
$800
$900
1st Quarter 2nd Quarter 3rd Quarter 4th Quarter
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Cable TV Franchise Fee
2012 budget
2012 actual to date
2011 actual
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Business License revenues totaled $130,000 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
$200
$400
$600
$800
$1,000
$1,200
$1,400
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
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Building Permits
2012 budget
2012 actual to date
2011 actual
$0
$50
$100
$150
$200
$250
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
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Business Licenses
2012 budget
2012 actual to date
2011 actual
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Intergovernmental includes Grants (Direct & Indirect Federal, State and Local), State shared
revenues and compact revenue from the Muckleshoot Indian Tribe. Collections totaled $4.3
million and exceeds budget by $218,000 or 5.3%. State shared revenue includes June 2012
disbursement of $188,000 by the State of Washington from the sale of state owned liquor
stores2, as well as Streamlined Sales Tax of $1,412,688.
Note: 2012 liquor excise tax and liquor profit budget revised to reflect changes in State distributions as noted in
footnote above.
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.
201120122012
Revenue Actual Budget Actual % Change% Change
Federal Grants 339,617 413,292 421,310 24.1%1.9%
State Grants 94,141 43,800 114,709 21.8%161.9%
Interlocal Grants 3,151 70,700 10,049 218.9%-85.8%
State Shared Revenue 3,391,535 3,089,740 3,218,797 -5.1%4.2%
Muckleshoot Casino Emerg.549,012 470,500 528,469 -3.7%12.3%
Intergovernmental Service 21,880 - 13,152 -39.9%N/A
YTD Total 4,399,335 4,088,032 4,306,486 -2.1%5.3%
Year to Date through September
Intergovernmental
2012 vs. 2011 2012 vs. Budget
201120122012
Revenue Actual Budget Actual Amount Percentage Amount Percentage
Trial Court Improvements 16,851 18,300 22,632 5,781 34.3%4,332 23.67%
Court Interpreter Program 6,643 6,960 13,174 6,531 98.32%6,214 89.28%
Motor Vehicle Fuel Tax 1,080,107 711,600 724,691 (355,416) -32.9%13,091 1.8%
Criminal Justice -High Crime 110,880 - 110,246 (634) -0.6%110,246 N/A
Criminal Justice -Population 11,595 56,100 11,853 259 2.2%(44,247) -78.9%
Criminal Justice -Spec. Prog.43,777 41,750 44,620 842 1.9%2,870 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 249,869 159,430 260,420 10,551 4.2%100,990 63.3%
Liquor Profits 367,156 558,000 545,271 178,115 48.5%(12,729) -2.28%
Streamlined Sales Tax 1,493,061 1,467,300 1,412,688 (80,373) -5.4%(54,612) -3.72%
YTD Total 3,391,535 3,089,740 3,218,797 (172,737) -5.1%129,057 4.2%
Year to Date through September
State Shared Revenues
2012 vs. 2011 2012 vs. Budget
9
Charges for Services consists of general governmental services, public safety, development service
fees and cultural & recreation fees and totaled $2.0 million. Development service fees and
culture and recreation fees make up over 85% of the revenue within this category.
Development services revenues totaled $1.0 million compared to budget of $466,000.
September collections include plan check revenues in excess of $41,000 due to the Kersey III
subdivision and over $13,000 in revenue generated from The Outlet Collection Seattle remodel.
Culture and recreation revenues are improved over 2011 levels, reflecting increased registrations
for summer camps, classes and league enrollment.
201120122012
Revenue Actual Budget Actual Amount Percentage Amount Percentage
General Government 64,095 48,900 92,944 28,849 45.01%44,044 90.07%
Public Safety 180,716 168,800 183,463 2,747 1.5%14,663 8.7%
Development Services 418,737 465,800 1,048,474 629,737 150.4%582,674 125.1%
Culture & Recreation 657,886 769,500 716,692 58,806 8.9%(52,808) -6.9%
YTD Total 1,321,433 1,453,000 2,041,573 720,139 54.5%588,573 40.5%
Year to Date through September
Charges for Services by Type
2012 vs. 2011 2012 vs. Budget
$0
$200
$400
$600
$800
$1,000
$1,200
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Development Service Fees
2012 budget
2012 actual to date
2011 actual
10
Fines & Penalties totaled $1.2 million and is on target with budget.
$0
$100
$200
$300
$400
$500
$600
$700
$800
$900
$1,000
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
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Culture & Recreation
2012 budget
2012 actual to date
2011 actual
201120122012
Month Actual Budget Actual Amount Percentage Amount Percentage
Civil Penalties 14,145 11,000 13,038 (1,107) -7.8%2,038 18.5%
Civil Infraction Penalties 457,386 440,300 463,752 6,366 1.4%23,452 5.3%
Red Light Photo Enforcement 684,588 394,800 429,625 (254,963) -37.2%34,825 8.8%
Parking Infractions 141,230 136,200 85,978 (55,252) -39.1%(50,222) -36.9%
Criminal Traffic Misdemeanor 64,222 87,300 71,469 7,247 11.3%(15,831) -18.1%
Criminal Non-Traffic Fines 68,865 70,900 66,323 (2,542) -3.7%(4,577) -6.5%
Criminal Costs 11,877 8,400 13,006 1,129 9.5%4,606 54.8%
Non-Court Fines & Penalties 62,976 42,700 57,417 (5,559) -8.8%14,717 34.5%
YTD Total 1,505,289 1,191,600 1,200,608 (304,681) -20.2%9,008 0.8%
Year to Date through September
Fines & Forfeits by Type
2012 vs. 2011 2012 vs. Budget
11
$0.0
$0.5
$1.0
$1.5
$2.0
$2.5
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
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Fines & Penalties
2012 budget
2012 actual to date
2011 actual
$0
$100
$200
$300
$400
$500
$600
$700
$800
$900
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
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Photo Enforcement
2012 budget
2012 actual to date
2011 actual
12
Miscellaneous revenues include interest and other investment earnings, rents, leases &
concessions, contributions & donations and other miscellaneous income. Revenues in this
category totaled $457,000 and exceed budget by $73,000.
Real Estate Excise Tax (REET) revenue is receipted into the Capital Improvement Projects Fund
and is used for governmental capital projects. REET revenue totaled $1.0 million and is below
budget by $65,000 or 6.1%.
201120122012
Month Actual Budget Actual Amount Percentage Amount Percentage
Interest & Investments 59,578 84,100 64,288 4,710 7.9%(19,812) -23.6%
Rents & Leases 281,328 246,400 252,623 (28,705) -10.2%6,223 2.5%
Contributions & Donations 39,184 14,700 40,978 1,794 4.6%26,278 178.8%
Other Miscellaneous Revenue 87,038 38,400 98,817 11,779 13.5%60,417 157.3%
YTD Total 467,127 383,600 456,705 (10,422) -2.2%73,105 19.1%
Miscellaneous Revenues by Type
Year to Date through September
2012 vs. 2011 2012 vs. Budget
$0.0
$0.2
$0.4
$0.6
$0.8
$1.0
$1.2
$1.4
$1.6
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
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Real Estate Excise Tax
2012 budget
2012 actual to date
2011 actual
13
Enterprise Funds
The following table provides an analysis of the City’s Enterprise funds – showing 2012 revenues
and expenditures by fund.
Water Sewer Storm Solid Waste Airport Cemetery Golf
OPERATING REVENUES
Charges for Services 7,208,357 3,789,863 5,541,335 8,695,965 11,641 625,680 901,725
Sewer Metro Service Revenue - 9,703,452 - - - - -
Rents, Leases, Concessions & Other - - - - 440,515 - 329,350
TOTAL OPERATING REVENUES 7,208,357 13,493,315 5,541,335 8,695,965 452,155 625,680 1,231,074
OPERATING EXPENSES:
Administration 1,818,937 1,443,411 1,884,799 552,024 394,601 219,058 169,137
Operations & Maintenance 3,182,449 2,141,005 2,115,969 989,877 9,969 478,489 938,877
Waste Management Payments - - - 6,211,613 - - -
Sewer Metro Services - 9,372,926 - - - - -
Depreciation & Amortization 1,629,721 1,313,220 1,102,658 14,114 297,082 53,226 235,503
TOTAL OPERATING EXPENSES 6,631,107 14,270,562 5,103,426 7,767,628 701,652 750,773 1,343,517
OPERATING INCOME (LOSS)577,250 (777,247) 437,908 928,337 (249,497) (125,093) (112,443)
NON-OPERATING REVENUES & EXPENSES
Interest Revenue 29,833 27,817 14,036 572 1,637 277 610
Other Non Operating Revenue 171,898 63,253 80,025 97,840 745 14,617 9,846
Other Non Operating Expense (28,816) (20,541) - - (25,238) (11,134) -
TOTAL NON-OPERATING REVENUES (EXPENSES)172,915 70,529 94,061 98,412 (22,855) 3,760 10,456
750,165 (706,718) 531,969 1,026,749 (272,352) (121,333) (101,987)
Contributions 330,470 2,283,637 429,901 - - - -
Transfers In - - - - - 222,300 45,088
Transfers Out (50,000) (50,000) (50,000) - - - -
TOTAL CONTRIBUTIONS & TRANSFERS 280,470 2,233,637 379,901 - - 222,300 45,088
CHANGE IN FUND BALANCE 1,030,636 1,526,919 911,870 1,026,749 (272,352) 100,967 (56,899)
BEGINNING FUND BALANCE January 1, 2012 63,028,695 73,274,006 47,772,204 760,681 9,731,158 814,709 5,144,962
ENDING FUND BALANCE September 30, 2012 64,059,331 74,800,926 48,684,074 1,787,430 9,458,806 915,676 5,088,063
INCOME (LOSS) BEFORE CONTRIBUTIONS &
TRANSFERS
14
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.
Water Sewer Storm Solid Waste Airport Cemetery Golf
OPERATING REVENUES
Charges for Services 7,208,357 3,789,863 5,541,335 8,695,965 11,641 625,680 901,725
Sewer Metro Service Revenue - 9,703,452 - - - - -
Rents, Leases, Concessions & Other - - - - 440,515 - 329,350
TOTAL OPERATING REVENUES 7,208,357 13,493,315 5,541,335 8,695,965 452,155 625,680 1,231,074
OPERATING EXPENSES:
Salaries & Wages 1,547,888 1,019,792 1,424,902 303,978 14,962 336,720 429,320
Benefits 685,006 438,141 615,683 130,891 4,833 161,855 202,783
Supplies 151,486 53,443 61,805 43,775 - 107,937 220,297
Other Service Charges 1,769,850 1,499,189 877,027 729,005 384,775 41,453 134,105
Intergovernmental Services - - 19,122 195,877 - - -
Waste Management Payments - - - 6,211,613 - - -
Sewer Metro Services - 9,372,926 - - - - -
Interfund Operating Rentals/Supplies 847,156 573,849 998,520 138,375 - 49,581 121,509
Other Expenses - - 3,710 - - - -
Depreciation & Amortization 1,629,721 1,313,220 1,102,658 14,114 297,082 53,226 235,503
TOTAL OPERATING EXPENSES 6,631,107 14,270,561 5,103,427 7,767,628 701,651 750,773 1,343,517
OPERATING INCOME (LOSS)577,250 (777,246) 437,908 928,337 (249,496) (125,093) (112,443)
NON-OPERATING REVENUES & EXPENSES
Interest Revenue 29,833 27,817 14,036 572 1,637 277 610
Contributions 37,954 24,561 43,930 97,080 - 13,279 9,846
Other Non Operating Revenue 133,945 38,692 36,096 760 745 1,388 -
Gain (Loss) on Sale of Fixed Assets - - - - - (50) -
Debt Service Interest (28,816) (20,541) - - (25,238) (11,134) -
TOTAL NON-OPERATING REVENUES (EXPENSES)172,915 70,529 94,061 98,412 (22,855) 3,760 10,456
Plus Items Not Effecting Working Capital
Depreciation 1,629,721 1,313,220 1,102,658 14,114 297,082 53,226 235,503
2,379,886 606,503 1,634,627 1,040,864 24,730 (68,106) 133,517
Increase in Contributions -System Development 327,264 2,283,637 429,901 - - - -
Increase in Contributions -Area Assessments 3,206 - - - - - -
Increase in Contributions -Other Governments - - - - - - -
Operating Transfers In - - - - - 222,300 45,088
Increase in Restricted Net Assets 17,216 35,236 - - (9,367) -
Decrease in Long term Receivables - 45,000 - - - - -
Increase in Deferred Credits - - - - 2,780 - -
TOTAL RESOURCES OTHER THAN OPERATIONS 347,687 2,363,873 429,901 - (6,587) 222,300 45,088
Net Change in Restricted Net Assets 273,158 142,429 129,307 - (9,948) (50) (20,477)
Increase in Fixed Assets - Salaries 103,083 82,533 47,672 - - - -
Increase in Fixed Assets - Benefits 41,306 32,538 18,463 - - - -
Increase in Fixed Assets - Site Improvements 42,952 - - - 14,466 - -
Increase in Fixed Assets - Equipment 94,816 - - - - - -
Increase in Fixed Assets - Construction 8,348,486 1,260,914 839,592 - 78,840 - -
Operating Transfers Out 50,000 50,000 50,000 - - - -
Debt Service Principal 435,568 288,262 - - - - -
TOTAL USES OTHER THAN OPERATIONS 9,389,369 1,856,676 1,085,034 - 83,358 (50) (20,477)
NET CHANGE IN WORKING CAPITAL (6,661,797) 1,113,700 979,494 1,040,864 (65,215) 154,244 199,082
BEGINNING WORING CAPITAL January 1, 2012 16,945,811 12,806,527 9,102,000 632,263 961,633 71,820 68,320
ENDING WORKING CAPITAL September 30, 2012 10,284,014 13,920,228 10,081,493 1,673,127 896,418 226,063 267,401
NET CHANGE IN WORKING CAPITAL (6,661,797) 1,113,700 979,494 1,040,864 (65,215) 154,244 199,082
NET WORKING CAPITAL FROM OPERATIONS
15
The operating position of all three utilities improved over the same period (year-to-date through
September) in 2011, reflecting the rate increases approved by Council.
- The Water Utility’s position improved to $577,300 in net operating income and compares to
$45,100 for the same period in 2011.
- The Sewer Utility’s position improved to a $777,200 net operating loss and compares to a
$2 million net loss for the same period in 2011.
- The Stormwater Utility ended the period with $437,900 in net operating income and
compares to $306,100 in net income for the same period last year.
The following chart illustrates the improvement in water revenues and water usage between
2012 and 2011.
The number of rounds played at the Auburn Golf Course (AGC) in September was 5,716 as
compared to 5,179 rounds for the same month last year – increasing September operating
revenue by 14.2% over 2011. Year-to-date operating revenues are $224 behind last year. The
AGC ended September with a net operating loss of $112,400 as compared to a loss of $60,400
for the same period last year.
-
200,000
400,000
600,000
800,000
1,000,000
1,200,000
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Water Revenues ($) vs Water Sold (ccf)
2011 -Present
2011 Water Sales ($)
2012 Water Sales ($)
2011 Water Sold (ccf)
2012 Water Sold (ccf)
0
50,000
100,000
150,000
200,000
250,000
300,000
350,000
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Golf Course Operating Revenues by Month
(2012 vs 2011)
2012 Monthly Budget
2012 Actual
2011 Actual
16
The Cemetery Fund ended September with a $125,100 net operating loss as compared to a
$152,100 net operating loss for the same period last year. Year-to-date operating revenues for
the Cemetery are up by 1.9% over last year. ($613,300 in 2011 v. $625,100 in 2012).
0
20,000
40,000
60,000
80,000
100,000
120,000
140,000
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Cemetery Operating Revenues by Month
(2012 vs 2011)
2012 Monthly
Budget
2012 Actual
2011 Actual
17
Internal Service Funds
The following table provides an analysis of the City’s Internal Service funds – showing 2012
revenues and expenditures by fund.
Innovation Equipment
Insurance Facilities & Technology Rental
OPERATING REVENUES:
Interfund Charges for Services - 2,577,825 3,101,328 2,249,321
Rents, Leases, Concessions & Other - 111,490 65,352 -
TOTAL OPERATING REVENUES - 2,689,315 3,166,680 2,249,321
OPERATING EXPENSES:
Administration 376,251 - - 524,931
Operations & Maintenance - 2,441,646 3,138,665 1,061,053
Depreciation & Amortization - - 423,155 568,372
TOTAL OPERATING EXPENSES 376,251 2,441,646 3,561,820 2,154,356
OPERATING INCOME (LOSS)(376,251) 247,669 (395,140) 94,965
NON-OPERATING REVENUES & EXPENSES
Interest Revenue 2,205 2,826 4,351 12,306
Other Non Operating Revenue - 13,072 - 14,184
Gain/Loss on Sale of Fixed Assets - - - 19,449
Other Non Operating Expense - - - -
TOTAL NON-OPERATING REVENUES (EXPENSES)2,205 15,898 4,351 45,940
INCOME (LOSS) BEFORE CONTRIBUTIONS & TRANSFERS (374,046) 263,567 (390,789) 140,905
Contributions - - 3,230 72,714
Transfers In - 300,000 - -
Transfers Out - (483,750) - (7,000)
TOTAL CONTRIBUTIONS & TRANSFERS - (183,750) 3,230 65,714
CHANGE IN FUND BALANCE (374,046) 79,817 (387,559) 206,619
BEGINNING FUND BALANCE January 1, 2012 2,184,680 1,570,419 4,350,183 10,135,919
ENDING FUND BALANCE September 30, 2012 1,810,634 1,650,236 3,962,625 10,342,538
18
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.
Innovation Equipment
Insurance Facilities & Technology Rental
OPERATING REVENUES:
Interfund Charges for Services - 2,577,825 3,101,328 2,249,321
Rents, Leases, Concessions & Other - 111,490 65,352
TOTAL OPERATING REVENUES - 2,689,315 3,166,680 2,249,321
OPERATING EXPENSES:
Salaries & Wages - 490,977 990,140 317,193
Benefits - 213,186 401,333 126,539
Supplies - 87,648 243,984 684,438
Other Service Charges 376,251 942,878 1,286,399 297,439
Interfund Operating Rentals/Supplies - 73,422 216,810 160,375
Other Expenses - 633,534 - -
Depreciation & Amortization - - 423,155 568,372
TOTAL OPERATING EXPENSES 376,251 2,441,646 3,561,820 2,154,356
OPERATING INCOME (LOSS)(376,251) 247,669 (395,140) 94,965
NON-OPERATING REVENUES & EXPENSES
Interest Revenue 2,205 2,826 4,351 12,306
Contributions - 13,072 - -
Other Non Operating Revenue - - - 14,184
Gain/Loss on Sale of Fixed Assets - - - 19,449
Other Non Operating Expense - - - -
TOTAL NON-OPERATING REVENUES (EXPENSES)2,205 15,898 4,351 45,940
Plus Items Not Effecting Working Capital
Depreciation - - 423,155 568,372
(374,046) 263,567 32,366 709,276
Increase in Contributions -Other Governments - - - -
Increase in Contributions -Other Funds - - 3,230 72,714
Operating Transfers In - 300,000 - -
TOTAL RESOURCES OTHER THAN OPERATIONS - 300,000 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 - - 352,807 1,145,740
Increase in Fixed Assets - Construction - - 51,756 29,276
Operating Transfers Out - 483,750 - 7,000
TOTAL USES OTHER THAN OPERATIONS - 483,750 407,794 1,218,202
NET CHANGE IN WORKING CAPITAL (374,046) 79,817 (372,198) (436,212)
BEGINNING WORING CAPITAL January 1, 2012 2,184,680 1,622,449 3,118,686 5,793,165
ENDING WORKING CAPITAL September 30, 2012 1,810,634 1,702,266 2,746,488 5,356,953
NET CHANGE IN WORKING CAPITAL (374,046) 79,817 (372,198) (436,212)
NET WORKING CAPITAL FROM OPERATIONS
19
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 Innovation & Technology Fund
ended with a net loss, reflecting the timing of expenses. 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
SEPTEMBER 2012 SALES TAX DISTRIBUTIONS (FOR NOVEMBER - JULY 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-July '11)(Nov '11-July '12)% Diff NAICS AUTOMOTIVE (Nov '10-Oct '11)(Nov '10-July '11)(Nov '11-July '12)% Diff
236 Construction of Buildings 582,840 417,853 294,886 -29.4%441 Motor Vehicle and Parts Dealer 2,560,962 1,907,344 2,067,805 8.4%
237 Heavy and Civil Construction 108,727 65,630 84,782 29.2%447 Gasoline Stations 224,459 165,910 163,538 -1.4%
238 Specialty Trade Contractors 604,245 432,801 433,275 0.1%TOTAL AUTOMOTIVE 2,785,421$ 2,073,254$ 2,231,343$ 7.6%
TOTAL CONSTRUCTION 1,295,813$ 916,284$ 812,943$ -11.3%Overall Change from Previous Year 158,088$
Overall Change from Previous Year (103,342)$
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-July '11)(Nov '11-July '12)% Diff
NAICS MANUFACTURING (Nov '10-Oct '11)(Nov '10-July '11)(Nov '11-July '12)% Diff 442 Furniture and Home Furnishings 218,335 164,135 162,819 -0.8%
311 Food Manufacturing 2,674 1,943 2,452 26.2%443 Electronics and Appliances 126,870 102,210 103,261 1.0%
312 Beverage and Tobacco Products 3,864 3,063 4,173 36.3%444 Building Material and Garden 382,504 281,527 306,452 8.9%
313 Textile Mills 959 937 89 -90.5%445 Food and Beverage Stores 330,776 246,025 252,491 2.6%
314 Textile Product Mills 2,625 1,610 3,784 135.0%446 Health and Personal Care Store 148,387 112,824 114,075 1.1%
315 Apparel Manufacturing 2,519 2,420 202 -91.7%448 Clothing and Accessories 754,407 563,132 567,573 0.8%
316 Leather and Allied Products 175 162 55 -66.0%451 Sporting Goods, Hobby, Books 126,042 96,184 92,914 -3.4%
321 Wood Product Manufacturing 24,075 18,068 17,724 -1.9%452 General Merchandise Stores 967,627 745,568 741,509 -0.5%
322 Paper Manufacturing 11,026 9,830 2,950 -70.0%453 Miscellaneous Store Retailers 489,259 351,282 355,612 1.2%
323 Printing and Related Support 38,511 28,771 21,649 -24.8%454 Nonstore Retailers 235,923 176,956 200,691 13.4%
324 Petroleum and Coal Products 9,771 7,163 7,994 11.6%TOTAL RETAIL TRADE 3,780,129$ 2,839,844$ 2,897,396$ 2.0%
325 Chemical Manufacturing 7,937 5,671 5,293 -6.7%Overall Change from Previous Year 57,552$
326 Plastics and Rubber Products 9,777 7,466 7,181 -3.8%
327 Nonmetallic Mineral Products 16,218 11,287 12,050 6.8%
331 Primary Metal Manufacturing 452 171 1,711 899.5%2011 Annual Total 2011 YTD 2012 YTD YTD
332 Fabricated Metal Product Manuf 19,661 13,978 16,431 17.5%NAICS SERVICES (Nov '10-Oct '11)(Nov '10-July '11)(Nov '11-July '12)% Diff
333 Machinery Manufacturing 14,242 10,572 8,854 -16.2%51*Information 481,043 300,158 295,320 -1.6%
334 Computer and Electronic Produc 16,776 14,270 6,762 -52.6%52*Finance and Insurance 65,518 52,784 33,668 b -36.2%
335 Electric Equipment, Appliances 780 483 330 -31.6%53*Real Estate, Rental, Leasing 303,750 220,087 229,540 4.3%
336 Transportation Equipment Man 362,149 290,179 116,654 a -59.8%541 Professional, Scientific, Tech 174,718 139,562 129,605 -7.1%
337 Furniture and Related Products 13,135 9,020 13,934 54.5%551 Company Management 351 108 14 -87.5%
339 Miscellaneous Manufacturing 25,531 19,688 18,628 -5.4%56*Admin. Supp., Remed Svcs 294,603 229,096 202,471 -11.6%
TOTAL MANUFACTURING 582,858$ 456,753$ 268,902$ -41.1%611 Educational Services 52,563 37,841 36,623 -3.2%
Overall Change from Previous Year (187,851)$ 62*Health Care Social Assistance 40,737 29,210 22,684 -22.3%
71*Arts and Entertainment 148,629 123,536 127,870 3.5%
72*Accomodation and Food Svcs 838,924 619,481 681,135 10.0%2011 Annual Total 2011 YTD 2012 YTD YTD 81*Other Services 389,241 290,782 294,580 1.3%NAICS TRANSPORTATION AND WAREHOUSING (Nov '10-Oct '11)(Nov '10-July '11)(Nov '11-July '12)% Diff 92*Public Administration 92,163 68,627 108,724 58.4%
481 Air Transportation 24 24 - -100.0%TOTAL SERVICES 2,882,241$ 2,111,271$ 2,162,233$ 2.4%
482 Rail Transportation 17,831 11,668 18,054 54.7%Overall Change from Previous Year 50,962$
484 Truck Transportation 36,261 33,914 7,834 -76.9%
485 Transit and Ground Passengers 68 68 268 292.1%
488 Transportation Support 18,083 13,825 13,373 -3.3%2011 Annual Total 2011 YTD 2012 YTD YTD
491 Postal Service 202 152 271 78.4%NAICS MISCELLANEOUS (Nov '10-Oct '11)(Nov '10-July '11)(Nov '11-July '12)% Diff
492 Couriers and Messengers 1,492 835 439 -47.5%000 Unknown 1,958 383 1 -99.7%
493 Warehousing and Storage 3,121 2,323 4,442 91.2%111-115 Agriculture, Forestry, Fishing 7,355 6,753 2,079 -69.2%
TOTAL TRANSPORTATION 77,083$ 62,809$ 44,681$ -28.9%211-221 Mining & Utilities 21,830 14,294 23,231 62.5%
Overall Change from Previous Year (18,128)$ 999 Unclassifiable Establishments 192,496 176,968 20,754 -88.3%
TOTAL SERVICES 223,639$ 198,398$ 46,065$ -76.8%
Overall Change from Previous Year (152,333)$
2011 Annual Total 2011 YTD 2012 YTD YTDNAICSWHOLESALE TRADE (Nov '10-Oct '11)(Nov '10-July '11)(Nov '11-July '12)% Diff
423 Wholesale Trade, Durable Goods 1,095,905 801,709 866,688 8.1%GRAND TOTAL 12,887,267$ 9,580,438$ 9,446,697$
424 Wholesale Trade, Nondurable 150,480 114,993 112,732 -2.0%Overall Change from Previous Year (133,741)$ -1.4%
425 Wholesale Electronic Markets 13,698 5,121 3,715 -27.5%
TOTAL WHOLESALE 1,260,083$ 921,824$ 983,135$ 6.7%
Overall Change from Previous Year 61,311$
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: -$20,014).
09/25/12 file:Monthly Sales Tax Report.xls
Prepared by Auburn Finance Department
21
Investment Purchase Purchase Maturity Yield to
Type Date Price Date Maturity
State Investment Pool Various 80,208,653$ Various 0.18%
KeyBank Money Market Various 6,962,977 Various 0.15%
US Treasury 05/04/1990 57,750 05/15/2016 5.72%
FHLMC 12/19/2011 2,000,000 12/19/2014 1.000%
Total Cash & Investments 89,229,380$ 0.200%
Investment Mix % of Total
State Investment Pool 89.9%Current 6-month treasury rate 0.14%
KeyBank Money Market 7.8%Current State Pool rate 0.18%
US Treasury 0.1%KeyBank Money Market 0.15%
FHLMC 2.2%Blended Auburn rate 0.20%
FNMA 0.0%
100.0%
City of Auburn
Investment Portfolio Summary
September 30, 2012
Summary
22