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HomeMy WebLinkAboutOctober 2012 AGENDA BILL APPROVAL FORM Agenda Subject: October 2012 Financial Report Date: 12/07/2012 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 October status report is based on financial data available as of November 26, 2012. Sales tax information represents business activity that occurred in August 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 $45.6 million and are running ahead of budget-to-date of $42.7 million due primarily to increased revenues from building permits, plan check fees and retail sales tax collections. The month of October 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 Kersey III, Pinnacle Estates, and the Jovita Heights subdivision. Expenses totaled $44.2 million and are running below budget of $48.2 million and compare to expenditures of $40.4 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 October, the Water fund ended with operating income of $976,500; the Sewer fund ended the period with a $629,200 operating loss; and the Storm Drainage fund ended with an operating loss of $295,900. The Golf Course ended the period with an operating loss of $186,900. Cemetery revenues at the end of October totaled $713,500 and were below expenses of $834,700, resulting in a year-to-date operating loss of $121,200 compared to an operating loss of $190,900 for the same period last year. Agenda Subject: October 2012 Financial Report Date: 12/07/2012 Internal Service Funds: Internal Service Funds provide services to other City departments and include functions such as Insurance, Facilities, Information Services, and Equipment Rental. 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 October was $92.2 million compared to $89.2 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: December 17, 2012 Item Number: Monthly Financial Report October 2012 (1) The anticipated Streamlined Sales Tax for 2012 is $1.96 million. The year to date actual Sales Tax amount includes $1,572,688 in Streamlined Sales Tax Mitigation received from the State through October 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 11,499,365 11,523,423 11,562,342 24,058 0.2% Sales Tax 12,267,000 10,162,700 10,578,433 10,662,415 415,733 4.1% Sales Tax - Annexation Credit 1,383,730 1,141,730 1,249,656 1,218,787 107,926 9.5% Criminal Justice Sales Tax 1,212,900 1,009,700 1,153,615 1,126,809 143,915 14.3% Brokered Natural Gas Tax 260,000 223,900 265,787 259,202 41,887 18.7% City Utilities Tax 2,620,200 2,190,900 2,444,837 2,093,649 253,937 11.6% Admissions Tax 360,000 357,100 342,732 356,587 (14,368) -4.0% Electric Tax 3,275,000 3,275,000 3,151,923 3,092,930 (123,077) -3.8% Natural Gas Tax 1,295,820 1,293,620 1,113,400 1,120,789 (180,220) -13.9% Cable TV Franchise Fee 703,600 703,600 812,229 800,067 108,629 15.4% Cable TV Franchise Fee - Capital 75,000 75,000 47,269 63,678 (27,731) -37.0% Telephone Tax 2,012,400 1,666,700 1,597,586 1,666,904 (69,114) -4.1% Garbage Tax (external)150,000 129,700 95,742 129,392 (33,958) -26.2% Leasehold Excise Tax 50,000 33,000 28,792 29,711 (4,208) -12.8% Gambling Excise Tax 331,500 292,900 205,725 203,115 (87,175) -29.8% Taxes sub-total 38,559,715 34,054,915 34,611,148 34,386,375 556,233 1.6% Business License Fees 200,000 112,900 133,705 123,847 20,805 18.4% Building Permits 700,000 614,800 1,353,503 997,232 738,703 120.2% Other Licenses & Permits 229,000 196,600 321,502 409,433 124,902 63.5% Intergovernmental (Grants, etc.) - (1)5,497,433 4,453,266 5,003,226 4,940,899 549,960 12.3% Charges for Services: General Government Services 64,600 54,200 99,084 73,320 44,884 82.8% Public Safety 223,500 183,800 204,558 200,265 20,758 11.3% Development Services Fees 627,000 518,100 1,122,531 454,296 604,431 116.7% Culture and Recreation 920,000 818,700 775,846 707,536 (42,854) -5.2% Fines and Forfeits 1,499,800 1,274,300 1,314,423 1,672,167 40,123 3.1% Fees/Charges/Fines sub-total 9,961,333 8,226,666 10,328,377 9,578,994 2,101,711 25.5% Interests and Other Earnings 115,000 89,800 70,456 64,982 (19,344) -21.5% Rents, Leases and Concessions 311,000 262,600 264,107 293,530 1,507 0.6% Contributions and Donations 20,500 15,900 44,059 42,725 28,159 177.1% Other Miscellaneous 46,200 41,600 106,685 103,363 65,085 156.5% Transfers In 17,000 17,000 17,000 1,078,439 - 0.0% Insurance Recoveries- Capital & Operating 50,000 37,955 142,057 137,756 104,102 274.3% Other Revenues sub-total 559,700 464,855 644,365 1,720,795 179,510 38.6% Total Operating Revenues 49,080,748 42,746,436 45,583,890 45,686,165 2,837,454 6.6% Operating Expenditures Council & Mayor 869,890 716,890 737,825 640,427 (20,935) -2.9% Municipal Court & Probation 3,399,260 2,726,860 2,868,161 2,445,647 (141,301) -5.2% Human Resources 942,164 770,130 698,695 652,215 71,435 9.3% Finance 1,235,590 1,026,590 936,612 933,733 89,978 8.8% City Attorney 1,699,500 1,417,200 1,352,971 1,291,803 64,229 4.5% Planning 3,883,620 3,142,920 3,123,154 2,956,393 19,766 0.6% Community & Human Services 1,160,360 988,360 888,990 807,530 99,370 10.1% Jail - SCORE 4,764,750 3,855,350 3,019,159 4,170,826 836,191 21.7% Police 20,682,698 16,675,898 14,816,084 14,837,832 1,859,814 11.2% Engineering 2,718,870 2,202,970 2,079,903 1,829,720 123,067 5.6% Parks and Recreation 7,598,230 6,329,130 6,124,982 5,879,029 204,148 3.2% Streets 3,415,280 2,744,980 2,329,923 2,232,868 415,057 15.1% Non-Departmental 7,130,550 5,625,850 5,246,816 1,701,940 379,034 6.7% Total Operating Expenditures 59,500,762 48,223,128 44,223,275 40,379,962 3,999,853 8.3% 2012 2012 YTD Budget vs. Actual Favorable (Unfavorable) 1 Monthly Financial Report October 2012 Overview This financial overview reflects the City’s overall financial position for the fiscal period ending October 31, 2012 and represents financial data available as of November 26, 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 $45.6 million and were above budget by 6.6%, or $2.8 million. This period’s highlights include: - Tax revenues totaled $34.6 million and were $556,000 above budget. - Sales taxes totaled $10.6 million and were $416,000 above budget. - Revenue from Fees/Charges/Fines totaled $10.3 million and was $2.1 million above budget due to stronger than budgeted revenue from development activity. - Other revenues totaled $644,000 and were 39% or $180,000 above budget primarily to insurance recoveries. General Fund expenses totaled $44.2 million compared to $40.4 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 $11.5 million to date and is consistent with expectations. Total property tax collected during the month of October was $4.6 million. 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 Mi l l i o n s Property Taxes 2012 budget 2012 actual to date 2011 actual 2 Monthly Financial Report October 2012 Sales taxes totaled $10.6 million and exceeds budget by $416,000. 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 $10.6 million and are 0.8% 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 Mi l l i o n s Sales & Use Tax 2012 budget 2012 actual to date 2011 actual 20112012 Component Group ActualActual Amount Percentage New Construction 1,055,688 926,842 (128,846) -12.2% Manufacturing 490,413 317,062 (173,351) -35.3% Transportation & Warehousing 66,960 48,157 (18,803) -28.1% Wholesale Trade 1,037,928 1,103,711 65,783 6.3% Automotive 2,322,643 2,506,212 183,569 7.9% Retail Trade 3,151,696 3,236,542 84,846 2.7% Services 2,340,425 2,396,964 56,539 2.4% Miscellaneous 206,718 50,820 (155,898) -75.4% YTD Total 10,672,471 10,586,310 (86,161) -0.8% Change from 2011 Year to Date through October Comparison of Sales Tax Collections by SIC Group 3 Monthly Financial Report October 2012 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 Mi l l i o n s Utility Tax 2012 budget 2012 actual to date 2011 actual 201120122012 Month Actual Budget Actual Amount Percentage Amount Percentage City Interfund Utility Taxes 2,093,649 2,190,900 2,444,837 351,188 16.8%253,937 11.6% Electric 3,092,930 3,275,000 3,151,923 58,993 1.9%(123,077) -3.8% Natural Gas 1,120,789 1,293,620 1,113,400 (7,389) -0.7%(180,220) -13.9% Telephone 1,666,904 1,666,700 1,597,586 (69,317) -4.2%(69,114) -4.1% Solid Waste 129,392 129,700 95,742 (33,650) -26.0%(33,958) -26.2% YTD Total 8,103,663 8,555,920 8,403,489 299,825 3.7%(152,431) -1.8% Year to Date through October Utility Tax by Type 2012 vs. 2011 2012 vs. Budget 4 Monthly Financial Report October 2012 Cable TV Franchise Fees exceed budget by $109,000 and are comparable to 2011 levels. The final quarterly payment has been received – closing the year at $812,000 in collected revenue. 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 $1.4 million and exceeded both budget and prior year levels of $615,000 and $997,000, respectively. October revenue collected for building permits was $122,000 and included over $27,000 in building permit revenue generated by Kersey III subdivision, $14,000 from Pinnacle Estates, $12,000 from Jovita Heights and $10,000 from The Outlet Collection Seattle. 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 Th o u s a n d s Cable TV Franchise Fee 2012 budget 2012 actual to date 2011 actual 5 Monthly Financial Report October 2012 Business License revenues totaled $134,000 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 $1,600 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Th o u s a n d s 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 Th o u s a n d s Business Licenses 2012 budget 2012 actual to date 2011 actual 6 Monthly Financial Report October 2012 Intergovernmental includes Grants (Direct & Indirect Federal, State and Local), State shared revenues and compact revenue from the Muckleshoot Indian Tribe. Collections totaled $5.0 million and exceeds budget by $550,000 or 12.3%. 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 $1,572,688. 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 304,139 404,292 607,502 99.7%50.3% State Grants 102,465 49,951 124,458 21.5%149.2% Interlocal Grants 3,151 74,600 15,049 377.6%-79.8% State Shared Revenue 3,711,970 3,370,123 3,532,003 -4.8%4.8% Muckleshoot Casino Emerg.712,294 554,300 711,063 -0.2%28.3% Intergovernmental Service 21,880 - 13,152 -39.9%N/A YTD Total 4,855,899 4,453,266 5,003,226 3.0%12.3% Year to Date through October Intergovernmental 2012 vs. 2011 2012 vs. Budget 201120122012 Revenue Actual Budget Actual Amount Percentage Amount Percentage Trial Court Improvements 22,468 21,400 22,632 164 0.7%1,232 5.76% Court Interpreter Program 6,643 6,960 13,174 6,531 98.32%6,214 89.28% Motor Vehicle Fuel Tax 1,172,717 800,150 816,466 (356,251) -30.4%16,316 2.0% Criminal Justice -High Crime 146,442 - 149,088 2,645 1.8%149,088 N/A Criminal Justice -Population 15,470 64,800 15,934 465 3.0%(48,866) -75.4% Criminal Justice -Spec. Prog.58,404 55,850 59,908 1,504 2.6%4,058 7.3% State DUI 14,720 7,000 13,217 (1,503) -10.2%6,217 88.8% 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 1,657,824 1,631,533 1,572,688 (85,136) -5.1%(58,845) -3.61% YTD Total 3,711,970 3,370,123 3,532,003 (179,968) -4.8%161,880 4.8% Year to Date through October State Shared Revenues 2012 vs. 2011 2012 vs. Budget 7 Monthly Financial Report October 2012 Charges for Services consists of general governmental services, public safety, development service fees and cultural & recreation fees and totaled $2.2 million. Development service fees and culture and recreation fees make up over 85% of the revenue within this category. Development services revenues totaled $1.1 million compared to budget of $518,000 due to strong development activity. October collections include plan check revenues of $58,000 which is partially attributable to the growth at the Bristol Knoll development and the remodel of The Outlet Collection Seattle. 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 73,320 54,200 99,084 25,764 35.14%44,884 82.81% Public Safety 200,265 183,800 204,558 4,292 2.1%20,758 11.3% Development Services 454,296 518,100 1,122,531 668,236 147.1%604,431 116.7% Culture & Recreation 707,536 818,700 775,846 68,310 9.7%(42,854) -5.2% YTD Total 1,435,417 1,574,800 2,202,019 766,602 53.4%627,219 39.8% Year to Date through October Charges for Services by Type 2012 vs. 2011 2012 vs. Budget $0 $200 $400 $600 $800 $1,000 $1,200 $1,400 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Th o u s a n d s Development Service Fees 2012 budget 2012 actual to date 2011 actual 8 Monthly Financial Report October 2012 Fines & Penalties totaled $1.3 million and exceed budget by $40,000 which is primarily due to higher than budgeted revenues from traffic infractions. $0 $100 $200 $300 $400 $500 $600 $700 $800 $900 $1,000 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Th o u s a n d s Culture & Recreation 2012 budget 2012 actual to date 2011 actual 201120122012 Month Actual Budget Actual Amount Percentage Amount Percentage Civil Penalties 16,148 12,100 14,292 (1,856) -11.5%2,192 18.1% Civil Infraction Penalties 556,701 470,100 517,872 (38,829) -7.0%47,772 10.2% Red Light Photo Enforcement 720,310 415,400 460,245 (260,065) -36.1%44,845 10.8% Parking Infractions 152,300 147,000 96,333 (55,967) -36.7%(50,667) -34.5% Criminal Traffic Misdemeanor 71,437 91,400 79,694 8,257 11.6%(11,706) -12.8% Criminal Non-Traffic Fines 76,213 76,100 76,061 (152) -0.2%(39) -0.1% Criminal Costs 12,838 9,100 14,178 1,340 10.4%5,078 55.8% Non-Court Fines & Penalties 66,221 53,100 55,748 (10,474) -15.8%2,648 5.0% YTD Total 1,672,167 1,274,300 1,314,423 (357,744) -21.4%40,123 3.1% Year to Date through October Fines & Forfeits by Type 2012 vs. 2011 2012 vs. Budget 9 Monthly Financial Report October 2012 $0.0 $0.5 $1.0 $1.5 $2.0 $2.5 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Mi l l i o n s 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 Th o u s a n d s Photo Enforcement 2012 budget 2012 actual to date 2011 actual 10 Monthly Financial Report October 2012 Miscellaneous revenues include interest and other investment earnings, rents, leases & concessions, contributions & donations and other miscellaneous income. Revenues in this category totaled $485,000 and exceeds budget by $75,000. Real Estate Excise Tax (REET) revenue is receipted into the Capital Improvement Projects Fund and is used for governmental capital projects. Year to date REET revenue totals $1.5 million and exceeds budget by $310,000. The revenue spike seen in October is primarily due to the sale of Auburn Regional Medical Center to Multicare. 201120122012 Month Actual Budget Actual Amount Percentage Amount Percentage Interest & Investments 64,982 89,800 70,456 5,474 8.4%(19,344) -21.5% Rents & Leases 293,530 262,600 264,107 (29,423) -10.0%1,507 0.6% Contributions & Donations 42,725 15,900 44,059 1,334 3.1%28,159 177.1% Other Miscellaneous Revenue 103,363 41,600 106,685 3,323 3.2%65,085 156.5% YTD Total 504,600 409,900 485,307 (19,293) -3.8%75,407 18.4% Miscellaneous Revenues by Type Year to Date through October 2012 vs. 2011 2012 vs. Budget $0.0 $0.2 $0.4 $0.6 $0.8 $1.0 $1.2 $1.4 $1.6 $1.8 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Mi l l i o n s Real Estate Excise Tax 2012 budget 2012 actual to date 2011 actual 11 Monthly Financial Report October 2012 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 8,470,336 4,353,408 6,175,033 9,691,027 12,908 713,539 941,210 Sewer Metro Service Revenue - 10,927,413 - - - - - Rents, Leases, Concessions & Other - - - - 484,833 - 353,467 TOTAL OPERATING REVENUES 8,470,336 15,280,821 6,175,033 9,691,027 497,741 713,539 1,294,677 OPERATING EXPENSES: Administration 2,040,127 1,616,040 2,159,797 615,944 436,332 245,161 188,237 Operations & Maintenance 3,643,109 2,384,972 3,013,972 1,176,012 9,985 531,531 1,031,808 Waste Management Payments - - - 6,980,753 - - - Sewer Metro Services - 10,451,399 - - - - - Depreciation & Amortization 1,810,564 1,457,654 1,220,553 15,683 330,443 58,033 261,511 TOTAL OPERATING EXPENSES 7,493,800 15,910,065 6,394,322 8,788,392 776,760 834,725 1,481,556 OPERATING INCOME (LOSS)976,536 (629,244) (219,289) 902,636 (279,018) (121,186) (186,879) NON-OPERATING REVENUES & EXPENSES Interest Revenue 31,438 29,374 15,446 652 1,793 314 698 Other Non Operating Revenue 172,221 63,576 80,738 97,840 820 14,617 9,846 Other Non Operating Expense (28,816) (20,541) - - (25,238) (11,134) - TOTAL NON-OPERATING REVENUES (EXPENSES)174,843 72,409 96,184 98,493 (22,624) 3,798 10,544 1,151,379 (556,835) (123,105) 1,001,128 (301,643) (117,389) (176,335) Contributions 347,438 2,303,506 471,279 - - - - Transfers In - - - - - 222,300 47,063 Transfers Out (50,000) (50,000) (50,000) - - - - TOTAL CONTRIBUTIONS & TRANSFERS 297,438 2,253,506 421,279 - - 222,300 47,063 CHANGE IN FUND BALANCE 1,448,817 1,696,671 298,174 1,001,128 (301,643) 104,911 (129,272) 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 October 31, 2012 64,477,512 74,970,677 48,070,378 1,761,809 9,429,516 919,621 5,015,689 INCOME (LOSS) BEFORE CONTRIBUTIONS & TRANSFERS 12 Monthly Financial Report October 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. Water Sewer Storm Solid Waste Airport Cemetery Golf OPERATING REVENUES Charges for Services 8,470,336 4,353,408 6,175,033 9,691,027 12,908 713,539 941,210 Sewer Metro Service Revenue - 10,927,413 - - - - - Rents, Leases, Concessions & Other - - - - 484,833 - 353,467 TOTAL OPERATING REVENUES 8,470,336 15,280,821 6,175,033 9,691,027 497,741 713,539 1,294,677 OPERATING EXPENSES: Salaries & Wages 1,727,268 1,137,516 1,599,607 332,545 16,551 374,105 475,659 Benefits 765,835 490,544 688,033 143,692 5,283 179,367 225,058 Supplies 166,318 57,310 64,089 43,853 - 116,381 239,316 Other Service Charges 2,090,735 1,678,544 1,690,268 821,015 424,484 51,749 145,002 Intergovernmental Services - - 19,122 297,101 - - - Waste Management Payments - - - 6,980,753 - - - Sewer Metro Services - 10,451,399 - - - - - Interfund Operating Rentals/Supplies 933,081 637,099 1,109,429 153,750 - 55,090 135,010 Other Expenses - 3,222 - - - - Depreciation & Amortization 1,810,564 1,457,654 1,220,553 15,683 330,443 58,033 261,511 TOTAL OPERATING EXPENSES 7,493,800 15,910,065 6,394,323 8,788,391 776,760 834,725 1,481,556 OPERATING INCOME (LOSS)976,536 (629,244) (219,290) 902,636 (279,019) (121,186) (186,879) NON-OPERATING REVENUES & EXPENSES Interest Revenue 31,438 29,374 15,446 652 1,793 314 698 Contributions 37,954 24,561 43,930 97,080 - 13,279 9,846 Other Non Operating Revenue 134,268 39,015 36,809 760 820 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)174,843 72,409 96,184 98,493 (22,624) 3,798 10,544 Plus Items Not Effecting Working Capital Depreciation 1,810,564 1,457,654 1,220,553 15,683 330,443 58,033 261,511 2,961,943 900,819 1,097,447 1,016,811 28,799 (59,355) 85,176 Increase in Contributions -System Development 344,232 2,303,506 471,279 - - - - Increase in Contributions -Area Assessments 3,206 - - - - - - Increase in Contributions -Other Governments - - - - - - - Operating Transfers In - - - - - 222,300 47,063 Increase in Restricted Net Assets 17,472 28,393 - - (12,231) - Decrease in Long term Receivables - 45,000 - - - - - Increase in Deferred Credits - - - - 5,571 - - TOTAL RESOURCES OTHER THAN OPERATIONS 364,910 2,376,899 471,279 - (6,660) 222,300 47,063 Net Change in Restricted Net Assets 525,854 142,489 218,154 - (12,812) (50) (19,342) Increase in Fixed Assets - Salaries 125,602 88,759 51,727 - - - Increase in Fixed Assets - Benefits 49,747 34,917 19,901 - - - - Increase in Fixed Assets - Site Improvements 46,369 - - - 19,054 - - Increase in Fixed Assets - Equipment 94,816 - - - - - - Increase in Fixed Assets - Construction 8,580,899 1,482,897 758,025 - 82,790 - - Operating Transfers Out 50,000 50,000 50,000 - - - - Debt Service Principal 435,568 288,262 - - - - - TOTAL USES OTHER THAN OPERATIONS 9,908,856 2,087,324 1,097,808 - 89,032 (50) (19,342) NET CHANGE IN WORKING CAPITAL (6,582,003) 1,190,394 470,919 1,016,811 (66,893) 162,995 151,581 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 October 31, 2012 10,363,807 13,996,922 9,572,919 1,649,075 894,740 234,815 219,901 NET CHANGE IN WORKING CAPITAL (6,582,003) 1,190,394 470,919 1,016,811 (66,893) 162,995 151,581 NET WORKING CAPITAL FROM OPERATIONS 13 Monthly Financial Report October 2012 The Water Utility’s position improved to $976,500 in net operating income and compares to $481,500 for the same period in 2011. The Sewer Utility’s position improved to a $629,200 net operating loss and compares to a $2 million net loss for the same period in 2011. The Stormwater Utility ended the period with a $219,300 net operating loss and compares to $295,900 in net income for the same period last year. The number of rounds played at the Auburn Golf Course (AGC) in October was 2,503 as compared to 2,805 rounds for the same month last year. The AGC ended October with a net operating loss of $186,900 as compared to a loss of $118,600 for the same period last year. - 200,000 400,000 600,000 800,000 1,000,000 1,200,000 1,400,000 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Water Revenues ($) 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 14 Monthly Financial Report October 2012 The Cemetery Fund ended October with a $121,200 net operating loss as compared to a $190,900 net operating loss for the same period last year. Year-to-date operating revenues for the Cemetery are up 7.2% over last year. ($713,500 in 2012 v. $665,500 in 2011) 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 15 Monthly Financial Report October 2012 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 - 2,864,250 3,445,920 2,495,904 Rents, Leases, Concessions & Other - 119,841 67,376 - TOTAL OPERATING REVENUES - 2,984,091 3,513,296 2,495,904 OPERATING EXPENSES: Administration 328,059 - - 588,422 Operations & Maintenance - 2,750,826 3,450,713 1,125,167 Depreciation & Amortization - - 466,498 680,065 TOTAL OPERATING EXPENSES 328,059 2,750,826 3,917,211 2,393,654 OPERATING INCOME (LOSS)(328,059) 233,265 (403,915) 102,250 NON-OPERATING REVENUES & EXPENSES Interest Revenue 2,476 3,060 4,769 13,059 Other Non Operating Revenue - 13,072 - 13,510 Gain/Loss on Sale of Fixed Assets - - - 13,939 Other Non Operating Expense - - - - TOTAL NON-OPERATING REVENUES (EXPENSES)2,476 16,133 4,769 40,508 INCOME (LOSS) BEFORE CONTRIBUTIONS & TRANSFERS (325,583) 249,398 (399,146) 142,758 Contributions - - 54,986 103,551 Transfers In - 300,000 - - Transfers Out - (644,787) - (7,000) TOTAL CONTRIBUTIONS & TRANSFERS - (344,787) 54,986 96,551 CHANGE IN FUND BALANCE (325,583) (95,389) (344,160) 239,309 BEGINNING FUND BALANCE January 1, 2012 2,184,680 1,570,419 4,350,183 10,135,919 ENDING FUND BALANCE October 31, 2012 1,859,098 1,475,029 4,006,023 10,375,228 16 Monthly Financial Report October 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. Innovation Equipment Insurance Facilities & Technology Rental OPERATING REVENUES: Interfund Charges for Services - 2,864,250 3,445,920 2,495,904 Rents, Leases, Concessions & Other - 119,841 67,376 TOTAL OPERATING REVENUES - 2,984,091 3,513,296 2,495,904 OPERATING EXPENSES: Salaries & Wages - 543,295 1,104,650 353,539 Benefits - 236,530 443,528 142,949 Supplies - 100,731 262,283 704,810 Other Service Charges 328,059 1,076,622 1,399,351 334,109 Interfund Operating Rentals/Supplies - 81,580 240,900 178,183 Other Expenses - 712,068 - - Depreciation & Amortization - - 466,498 680,065 TOTAL OPERATING EXPENSES 328,059 2,750,826 3,917,211 2,393,655 OPERATING INCOME (LOSS)(328,059) 233,265 (403,915) 102,250 NON-OPERATING REVENUES & EXPENSES Interest Revenue 2,476 3,060 4,769 13,059 Contributions - 13,072 - - Other Non Operating Revenue - - - 13,510 Gain/Loss on Sale of Fixed Assets - - - 13,939 Other Non Operating Expense - - - - TOTAL NON-OPERATING REVENUES (EXPENSES)2,476 16,133 4,769 40,508 Plus Items Not Effecting Working Capital Depreciation - - 466,498 680,065 (325,583) 249,398 67,352 822,823 Increase in Contributions -Other Governments - - 51,756 - Increase in Contributions -Other Funds - - 3,230 103,551 Operating Transfers In - 300,000 - - TOTAL RESOURCES OTHER THAN OPERATIONS - 300,000 54,986 103,551 Net Change in Restricted Net Assets - - 3,230 39,730 Increase in Fixed Assets - Site Improvements - - - 18,493 Increase in Fixed Assets - Equipment - - 355,803 1,258,740 Increase in Fixed Assets - Construction - - 51,756 29,276 Operating Transfers Out - 644,787 - 7,000 TOTAL USES OTHER THAN OPERATIONS - 644,787 410,789 1,353,240 NET CHANGE IN WORKING CAPITAL (325,583) (95,389) (288,451) (426,866) BEGINNING WORING CAPITAL January 1, 2012 2,184,680 1,622,449 3,118,686 5,793,165 ENDING WORKING CAPITAL October 31, 2012 1,859,098 1,527,059 2,830,235 5,366,299 NET CHANGE IN WORKING CAPITAL (325,583) (95,389) (288,451) (426,866) NET WORKING CAPITAL FROM OPERATIONS 17 Monthly Financial Report October 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 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. 18 SALES TAX SUMMARY OCTOBER 2012 SALES TAX DISTRIBUTIONS (FOR NOVEMBER - AUGUST 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-Aug '11)(Nov '11-Aug '12)% Diff NAICS AUTOMOTIVE (Nov '10-Oct '11)(Nov '10-Aug '11)(Nov '11-Aug '12)% Diff 236 Construction of Buildings 582,840 492,713 346,201 -29.7%441 Motor Vehicle and Parts Dealer 2,560,962 2,135,928 2,321,967 8.7% 237 Heavy and Civil Construction 108,727 77,313 91,456 18.3%447 Gasoline Stations 224,459 186,715 184,246 -1.3% 238 Specialty Trade Contractors 604,245 485,662 489,185 0.7%TOTAL AUTOMOTIVE 2,785,421$ 2,322,643$ 2,506,212$ 7.9% TOTAL CONSTRUCTION 1,295,813$ 1,055,688$ 926,842$ -12.2%Overall Change from Previous Year 183,569$ Overall Change from Previous Year (128,846)$ 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-Aug '11)(Nov '11-Aug '12)% Diff NAICS MANUFACTURING (Nov '10-Oct '11)(Nov '10-Aug '11)(Nov '11-Aug '12)% Diff 442 Furniture and Home Furnishings 218,335 184,263 185,385 0.6% 311 Food Manufacturing 2,674 2,150 2,661 23.7%443 Electronics and Appliances 126,870 110,766 122,222 10.3% 312 Beverage and Tobacco Products 3,864 3,269 4,658 42.5%444 Building Material and Garden 382,504 317,826 344,677 8.4% 313 Textile Mills 959 1,058 81 -92.4%445 Food and Beverage Stores 330,776 277,060 283,318 2.3% 314 Textile Product Mills 2,625 1,853 3,965 114.0%446 Health and Personal Care Store 148,387 125,252 126,380 0.9% 315 Apparel Manufacturing 2,519 2,422 205 -91.5%448 Clothing and Accessories 754,407 626,489 634,350 1.3% 316 Leather and Allied Products 175 167 58 -65.5%451 Sporting Goods, Hobby, Books 126,042 105,951 101,982 -3.7% 321 Wood Product Manufacturing 24,075 19,484 22,567 15.8%452 General Merchandise Stores 967,627 819,931 821,600 0.2% 322 Paper Manufacturing 11,026 10,176 3,257 -68.0%453 Miscellaneous Store Retailers 489,259 388,959 394,809 1.5% 323 Printing and Related Support 38,511 32,399 23,796 -26.6%454 Nonstore Retailers 235,923 195,198 221,820 13.6% 324 Petroleum and Coal Products 9,771 8,033 9,043 12.6%TOTAL RETAIL TRADE 3,780,129$ 3,151,696$ 3,236,542$ 2.7% 325 Chemical Manufacturing 7,937 6,575 6,278 -4.5%Overall Change from Previous Year 84,846$ 326 Plastics and Rubber Products 9,777 7,882 7,940 0.7% 327 Nonmetallic Mineral Products 16,218 12,895 13,750 6.6% 331 Primary Metal Manufacturing 452 246 1,713 595.6%2011 Annual Total 2011 YTD 2012 YTD YTD 332 Fabricated Metal Product Manuf 19,661 16,365 20,009 22.3%NAICS SERVICES (Nov '10-Oct '11)(Nov '10-Aug '11)(Nov '11-Aug '12)% Diff 333 Machinery Manufacturing 14,242 11,747 9,955 -15.3%51*Information 481,043 330,934 329,260 -0.5% 334 Computer and Electronic Produc 16,776 15,077 7,711 -48.9%52*Finance and Insurance 65,518 53,792 39,842 b -25.9% 335 Electric Equipment, Appliances 780 529 344 -35.0%53*Real Estate, Rental, Leasing 303,750 246,103 254,260 3.3% 336 Transportation Equipment Man 362,149 307,505 142,320 a -53.7%541 Professional, Scientific, Tech 174,718 149,680 142,127 -5.0% 337 Furniture and Related Products 13,135 9,448 15,499 64.0%551 Company Management 351 108 14 -87.5% 339 Miscellaneous Manufacturing 25,531 21,134 21,255 0.6%56*Admin. Supp., Remed Svcs 294,603 251,871 221,890 -11.9% TOTAL MANUFACTURING 582,858$ 490,413$ 317,062$ -35.3%611 Educational Services 52,563 40,520 40,003 -1.3% Overall Change from Previous Year (173,351)$ 62*Health Care Social Assistance 40,737 35,443 23,909 -32.5% 71*Arts and Entertainment 148,629 134,268 138,559 3.2% 72*Accomodation and Food Svcs 838,924 696,244 764,479 9.8%2011 Annual Total 2011 YTD 2012 YTD YTD 81*Other Services 389,241 323,005 325,882 0.9%NAICS TRANSPORTATION AND WAREHOUSING (Nov '10-Oct '11)(Nov '10-Aug '11)(Nov '11-Aug '12)% Diff 92*Public Administration 92,163 78,455 116,741 48.8% 481 Air Transportation 24 24 - -100.0%TOTAL SERVICES 2,882,241$ 2,340,425$ 2,396,964$ 2.4% 482 Rail Transportation 17,831 12,650 18,235 44.2%Overall Change from Previous Year 56,539$ 484 Truck Transportation 36,261 34,784 8,440 -75.7% 485 Transit and Ground Passengers 68 68 268 292.1% 488 Transportation Support 18,083 15,315 15,592 1.8%2011 Annual Total 2011 YTD 2012 YTD YTD 491 Postal Service 202 170 333 96.1%NAICS MISCELLANEOUS (Nov '10-Oct '11)(Nov '10-Aug '11)(Nov '11-Aug '12)% Diff 492 Couriers and Messengers 1,492 1,341 439 -67.3%000 Unknown 1,958 1,958 1 -99.9% 493 Warehousing and Storage 3,121 2,607 4,849 86.0%111-115 Agriculture, Forestry, Fishing 7,355 6,991 2,244 -67.9% TOTAL TRANSPORTATION 77,083$ 66,960$ 48,157$ -28.1%211-221 Mining & Utilities 21,830 16,947 26,041 53.7% Overall Change from Previous Year (18,803)$ 999 Unclassifiable Establishments 192,496 180,822 22,533 -87.5% TOTAL SERVICES 223,639$ 206,718$ 50,820$ -75.4% Overall Change from Previous Year (155,898)$ 2011 Annual Total 2011 YTD 2012 YTD YTDNAICSWHOLESALE TRADE (Nov '10-Oct '11)(Nov '10-Aug '11)(Nov '11-Aug '12)% Diff 423 Wholesale Trade, Durable Goods 1,095,905 900,446 972,362 8.0%GRAND TOTAL 12,887,267$ 10,672,472$ 10,586,311$ 424 Wholesale Trade, Nondurable 150,480 126,193 126,960 0.6%Overall Change from Previous Year (86,161)$ -0.8% 425 Wholesale Electronic Markets 13,698 11,288 4,389 -61.1% TOTAL WHOLESALE 1,260,083$ 1,037,928$ 1,103,711$ 6.3% Overall Change from Previous Year 65,784$ 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: -$20,014). 10/24/12 file:Monthly Sales Tax Report.xls Prepared by Auburn Finance Department 19 Investment Purchase Purchase Maturity Yield to Type Date Price Date Maturity State Investment Pool Various 80,220,761$ Various 0.18% KeyBank Money Market Various 9,941,710 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 92,220,221$ 0.196% Investment Mix % of Total State Investment Pool 87.0%Current 6-month treasury rate 0.15% KeyBank Money Market 10.8%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 October 31, 2012 Summary 20