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Home My WebLink AboutDecember 2012 AGENDA BILL APPROVAL FORM Agenda Subject: December 2012 Financial Report Date: February 11, 2013 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 December status report is based on financial data available as of February 8, 2013. Sales tax information represents business activity that occurred in October 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 $52.8 million and are running ahead of 2012 budget of $49.3 million due primarily to increased revenues from building permits, plan check fees, retail sales tax collections, and property tax collections. Retail sales tax collections for the year exceed budget and prior year collections by $772,000 and $184,000 respectively. 2012 property tax revenue collected exceed budget by $304,000 or 2.4%. The month of December saw several large one-time revenues 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, Brandon Meadows, and Bristoll Knoll. Expenses totaled $52.9 million and are running below budget of $59.0 million and compare to expenditures of $50.4 million for the same period last year. 2012 departmental expenses are below budget primarily due to lower expenses for SCORE due to not utilizing the budgeted contingency, 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 December, the Water fund ended with operating income of $968,200; the Sewer fund ended the period with a $520,900 operating loss; and the Storm Drainage fund ended with an operating loss of $457,500. The Golf Course ended the period with an operating loss of $365,000 as compared to an operating loss of $319,100 for the same period last year. Year-to-date rounds played at the Golf Course totaled 45,704 as compared to 45,968 the previous year. The Cemetery ended with a $170,700 operating loss as compared to an operating loss of $268,400 for the previous year, reflecting increased lot and marker sales. 1 Agenda Subject: December 2012 Financial Report Date: 2/11/2013 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 December was $90.6 million compared to $90.9 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: February 19, 2013 Item Number: 2 Monthly Financial Report December 2012 General Fund 2011 Summary of Sources and Uses Annual BudgetYTD BudgetYTD ActualYTD ActualAmountPercentage OPERATING REVENUES Property Tax 12,562,565.0012,562,565.0012,866,488.2912,566,893.78303,923.29 2.4% Sales Tax 12,267,000.0012,267,000.0013,039,174.0012,855,629.76772,174.00 6.3% Sales Tax - Annexation Credit 1,383,730.001,383,730.001,542,272.011,466,220.30158,542.01 11.5% Criminal Justice Sales Tax 1,212,900.001,212,900.001,401,994.791,347,647.03189,094.79 15.6% Brokered Natural Gas Tax 260,000.00260,000.00 302,212.32 298,836.0442,212.32 16.2% City Utilities Tax 2,620,200.002,620,200.002,799,882.762,522,971.22179,682.76 6.9% Admissions Tax 360,000.00360,000.00 344,697.23358,735.88(15,302.77)-4.3% Electric Tax 3,275,000.003,275,000.003,151,923.193,092,929.84(123,076.81)-3.8% Natural Gas Tax 1,295,820.001,295,820.001,113,400.111,120,788.95(182,419.89)-14.1% Cable TV Franchise Fee 703,600.00703,600.00812,228.47800,067.40108,628.47 15.4% Cable TV Franchise Fee - Capital 75,000.00 75,000.00 62,871.29 63,677.61(12,128.71)-16.2% Telephone Tax 2,012,400.002,012,400.001,995,453.062,006,135.62(16,946.94)-0.8% Garbage Tax (external)150,000.00 150,000.00 111,754.56 147,788.36(38,245.44)-25.5% Leasehold Excise Tax 50,000.00 50,000.00 39,262.42 49,467.40(10,737.58)-21.5% Gambling Excise Tax 331,500.00 331,500.00 261,702.83 253,963.97 (69,797.17)-21.1% Taxes sub-total 38,559,715.0038,559,715.0039,845,317.3338,951,753.161,285,602.33 3.3% Business License Fees 200,000.00200,000.00 231,956.50215,734.5031,956.50 16.0% Building Permits 700,000.00700,000.001,683,464.831,104,184.53983,464.83 140.5% Other Licenses & Permits 229,000.00 229,000.00 429,221.49469,955.06200,221.49 87.4% Intergovernmental (Grants, etc.) - (1)5,700,833.005,700,833.005,745,506.385,419,741.6644,673.38 0.8% Charges for Services: General Government Services 64,600.00 64,600.00 119,563.55 88,271.8154,963.55 85.1% Public Safety 223,500.00223,500.00206,247.50242,029.25(17,252.50)-7.7% Development Services Fees 627,000.00 627,000.001,229,896.41 516,158.24602,896.41 96.2% Culture and Recreation 920,000.00920,000.00 869,436.04 804,912.18(50,563.96)-5.5% Fines and Forfeits 1,499,800.00 1,499,800.00 1,577,091.78 1,940,326.03 77,291.78 5.2% Fees/Charges/Fines sub-total 10,164,733.0010,164,733.0012,092,384.4810,801,313.261,927,651.48 19.0% Interests and Other Earnings 115,000.00 115,000.00 89,804.67 86,931.62(25,195.33)-21.9% Rents, Leases and Concessions 311,000.00 311,000.00 326,094.55376,637.3015,094.55 4.9% Contributions and Donations 20,500.00 20,500.00 50,719.72 62,753.4730,219.72 147.4% Other Miscellaneous 46,200.00 46,200.00 119,753.70 123,604.5173,553.70 159.2% Transfers In 17,000.00 17,000.00 17,000.001,078,439.00 0.00 0.0% Insurance Recoveries- Capital & Operating 98,000.00 98,000.00 291,210.23 154,201.00 193,210.23 197.2% Other Revenues sub-total 607,700.00607,700.00894,582.871,882,566.90286,882.87 47.2% Total Operating Revenues 49,332,148.0049,332,148.0052,832,284.6851,635,633.333,500,136.68 7.1% Operating Expenditures Council & Mayor 895,283.00895,283.00910,566.08 793,172.08(15,283.08)-1.7% Municipal Court & Probation 3,399,260.003,399,260.003,143,611.903,052,278.43255,648.10 7.5% Human Resources 942,164.00942,164.00859,684.43 800,051.7082,479.57 8.8% Finance 1,235,590.001,235,590.001,144,457.791,117,925.8991,132.21 7.4% City Attorney 1,699,500.001,699,500.001,629,697.701,554,731.0569,802.30 4.1% Planning 3,883,620.003,883,620.003,852,992.243,746,365.2330,627.76 0.8% Community & Human Services 1,136,717.001,136,717.00938,354.89974,505.44198,362.11 17.5% Jail - SCORE 4,764,750.004,764,750.003,541,407.906,130,267.151,223,342.10 25.7% Police 20,087,708.0020,087,708.0018,161,146.4718,159,350.741,926,561.53 9.6% Engineering 2,766,870.002,766,870.002,526,525.722,257,553.36240,344.28 8.7% Parks and Recreation 7,700,990.007,700,990.007,326,660.156,988,485.02374,329.85 4.9% Streets 3,509,560.003,509,560.003,063,820.212,714,211.83445,739.79 12.7% Non-Departmental 6,930,550.006,930,550.005,762,410.072,153,566.951,168,139.93 16.9% Total Operating Expenditures 58,952,562.0058,952,562.0052,861,335.5550,442,464.876,091,226.45 10.3% 2012 2012 YTD Budget vs. Actual Favorable (Unfavorable) (1) The anticipated Streamlined Sales Tax for 2012 is $1.96 million. The 2012 Streamlined Sales Tax Mitigation received from the state through the month of December 2012 was $1.89M. 3 Monthly Financial Report December 2012 Overview This financial overview reflects the City’s overall financial position for the fiscal period ending December 31, 2012 (period 12) and represents financial data available as of February 8, 2013. General Fund revenues for the year totaled $52.8 million and were above budget by 7.1%, or $3.5 million. This period’s highlights include: - Tax revenues totaled $39.8 million and were $1.3 million above budget. - Sales taxes totaled $12.9 million and were $772,000 above budget. - Revenue from Fees/Charges/Fines totaled $12.1 million and was $1.9 million above budget due to stronger than budgeted revenue from development activity. - Other revenues totaled $895,000 and were 47.2% or $287,000 above budget primarily to insurance recoveries. General Fund expenses totaled $52.9 million compared to $50.4 million in 2011, reflecting one- time transfers to Cemetery, Golf Course debt and Cumulative Reserve funds. Departmental expenditures in 2012 were $ 6.1 million under budget due to earlier vacancies, reduced SCORE payments due to not utilizing the budgeted contingency, 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 in 2012 totaled $12.9 million and exceeds budget by $304,000 or 2.4%. $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 December 2012 Sales taxes totaled $13.0 million and exceeds budget by $772,000. $0.0 $2.0 $4.0 $6.0 $8.0 $10.0 $12.0 $14.0 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 1,295,812.621,221,212.24(74,600.38)-5.8% Manufacturing 582,857.96404,711.89(178,146.07)-30.6% Transportation & Warehousing77,082.7054,951.78(22,130.92)-28.7% Wholesale Trade 1,260,083.041,296,717.9736,634.932.9% Automotive 2,785,420.793,018,627.11233,206.328.4% Retail Trade 3,780,129.483,923,913.16143,783.683.8% Services 2,882,241.233,056,492.04174,250.816.0% Miscellaneous 223,639.3860,699.33(162,940.05)-72.9% YTD Total 12,887,267.2013,037,325.52150,058.321.2% Change from 2011 Year to Date through December Comparison of Sales Tax Collections by SIC Group As shown above, sales taxes by business sector totaled $13.0 million and were $150,000, or 1.2% more than the year prior. 5 Monthly Financial Report December 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). External garbage tax in 2012 is $36,000 lower than what was received in 2011 due to the Pierce County solid waste contract annexation that occurred in March and October 2012. This reduction in revenue is offset by increased revenue realized in the City interfund utility tax revenue. The following table presents utility tax collections by source: 201120122012 Month ActualBudgetActualAmountPercentageAmountPercentage City Interfund Utility Taxes2,522,971.222,620,200.002,799,882.76276,911.5411.0%179,682.766.9% Electric 3,092,929.843,275,000.003,151,923.1958,993.351.9%(123,076.81)-3.8% Natural Gas 1,120,788.951,295,820.001,113,400.11(7,388.84)-0.7%(182,419.89)-14.1% Telephone 2,006,135.622,012,400.001,995,453.06(10,682.56)-0.5%(16,946.94)-0.8% Garbage (external)147,788.36150,000.00111,754.56(36,033.80)-24.4%(38,245.44)-25.5% YTD Total 8,890,613.999,353,420.009,172,413.68281,799.693.2%(181,006.32)-1.9% Year to Date through December Utility Tax by Type 2012 vs. 2011 2012 vs. Budget 6 Monthly Financial Report December 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. $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 in 2012 totaled $1.7 million and exceeded both budget and prior year levels of $1.1 million and $1.0 million respectively. December revenue collected for building permits was $129,000 and included over $47,000 in building permit revenue generated by Kersey III, Brandon Meadows and Bristol Knoll housing developments. In general, building permit activity has increased, reflecting the broader trend of increased construction activity in the region. 7 Monthly Financial Report December 2012 $0 $200 $400 $600 $800 $1,000 $1,200 $1,400 $1,600 $1,800 JanFebMarAprMayJunJulAugSepOctNovDec Th o u s a n d s Building Permits 2012 budget 2012 actual to date 2011 actual Business License revenues totaled $232,000 in 2012, compared to prior year collection rate of $216,000. This represents a 7.5% increase in collections compared to the prior year. $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 8 Monthly Financial Report December 2012 Intergovernmental includes Grants (Direct & Indirect Federal, State and Local), state shared revenues and compact revenue from the Muckleshoot Indian Tribe. Collections totaled $5.7 million and exceeds budget by $45,000 or 0.8%. State shared revenue includes June 2012 disbursement of $188,000 by the State of Washington from the sale of state owned liquor stores1, as well as Streamlined Sales Tax of $1,894,001.25. 2011 20122012 Revenue ActualBudgetActual% Change% Change Federal Grants 473,187.35797,716.00626,244.71 32.3%-21.5% State Grants 128,231.0990,327.00162,000.87 26.3%79.3% Interlocal Grants 20,150.7492,000.0044,851.73 122.6%-51.2% State Shared Revenue4,060,998.484,020,790.004,181,935.39 3.0%4.0% Muckleshoot Casino Emerg.712,294.00700,000.00711,063.00 -0.2%1.6% Intergovernmental Service24,880.00 0.0019,410.68 -22.0%N/A YTD Total 5,419,741.665,700,833.005,745,506.38 6.0%0.8% Year to Date through December Intergovernmental 2012 vs. 20112012 vs. Budget 201120122012 MonthActualBudgetActualAmountPercentageAmountPercentage Jan771,244.96507,100.00376,544.57(394,700.39)-51.2%-130,555.43-25.7% Feb287,509.53439,200.00431,132.12143,622.5950.0%-8,067.88-1.8% Mar448,578.92474,600.00337,874.34(110,704.58)-24.7%-136,725.66-28.8% Apr436,725.78459,400.00530,148.3293,422.5421.4%70,748.3215.4% May529,175.73457,260.00425,585.83(103,589.90)-19.6%-31,674.17-6.9% Jun384,400.65498,392.00596,027.16211,626.5155.1%97,635.1619.6% Jul789,311.24669,280.00569,818.32(219,492.92)-27.8%-99,461.68-14.9% Aug332,729.83282,900.00406,609.6673,879.8322.2%123,709.6643.7% Sep419,658.58436,100.00632,745.80213,087.2250.8%196,645.8045.1% Oct541,563.81365,635.00697,177.58155,613.7728.7%331,542.5890.7% Nov102,082.46571,833.00248,511.45146,428.99143.4%-323,321.55-56.5% Dec376,760.17539,133.00493,331.23116,571.0630.9%-45,801.77-8.5% YTD Total5,419,741.665,700,833.005,745,506.38325,764.726.0%44,673.380.8% Year to Date through December Intergovernmental (Grants, Entitlements & Services) 2012 vs. 20112012 vs. Budget 1 The City of Auburn received $188,230.00 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. 9 Monthly Financial Report December 2012 Charges for Services consists of general governmental services, public safety, development service fees and cultural & recreation fees and totaled $2.4 million. Development service fees and culture and recreation fees make up over 85% of the revenue within this category. Development services revenues totaled $1.2 million compared to budget of $627,000 due to strong development activity. Culture and recreation revenues are improved over 2011 levels, reflecting increased registrations for summer camps, classes and league enrollment. 20112012 2012 Revenue ActualBudgetActualAmountPercentageAmountPercentage General Government88,271.8164,600.00119,563.5531,291.7435.45%54,963.5585.08% Public Safety 242,029.25223,500.00206,247.50(35,781.75)-14.8%(17,252.50)-7.7% Development Services516,158.24627,000.001,229,896.41713,738.17138.3%602,896.4196.2% Culture & Recreation804,912.18920,000.00869,436.0464,523.868.0%(50,563.96)-5.5% YTD Total1,651,371.481,835,100.002,425,143.50773,772.0246.9%590,043.5032.2% Year to Date through December Charges for Services by Type 2012 vs. 20112012 vs. Budget $0 $200 $400 $600 $800 $1,000 $1,200 $1,400 JanFebMarAprMayJunJulAugSepOctNovDec Th o u s a n d s Development Service Fees 2012 budget 2012 actual to date 2011 actual 10 Monthly Financial Report December 2012 $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 Fines & Penalties totaled $1.6 million and exceed budget by $77,000 or 5.2%. 201120122012 Month ActualBudgetActualAmountPercentageAmountPercentage Civil Penalties 21,477.0815,000.0016,644.12(4,832.96)-22.5%1,644.1211.0% Civil Infraction Penalties656,991.38555,000.00598,201.25(58,790.13)-8.9%43,201.257.8% Red Light Photo Enforcement825,337.06491,300.00595,246.60(230,090.46)-27.9%103,946.6021.2% Parking Infractions 172,136.93170,000.00109,690.99(62,445.94)-36.3%(60,309.01)-35.5% Criminal Traffic Misdemeanor81,487.20105,000.0090,140.478,653.2710.6%(14,859.53)-14.2% Criminal Non-Traffic Fines88,331.7690,000.0086,855.84(1,475.92)-1.7%(3,144.16)-3.5% Criminal Costs 15,102.9210,500.0015,499.86396.942.6%4,999.8647.6% Non-Court Fines & Penalties79,461.7063,000.0064,812.65(14,649.05)-18.4%1,812.652.9% YTD Total 1,940,326.031,499,800.001,577,091.78(363,234.25)-18.7%77,291.785.2% Year to Date through December Fines & Forfeits by Type 2012 vs. 20112012 vs. Budget 11 Monthly Financial Report December 2012 $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 $0 $100 $200 $300 $400 $500 $600 $700 $800 $900 JanFebMarAprMayJunJulAugSepOctNovDec Th o u s a n d s Photo Enforcement 2012 budget 2012 actual to date 2011 actual 12 Monthly Financial Report December 2012 Miscellaneous revenues include interest and other investment earnings, rents, leases & concessions, contributions & donations and other miscellaneous income. Revenues in this category totaled $586,000 and exceeded budget by $94,000. The majority of this increase in revenues was due to revenue generated from judgments and settlements, as well as a $44,000 refund from King County Regional Animal Control for the 2011 reconciliation. 201120122012 Month ActualBudgetActualAmountPercentageAmountPercentage Interest & Investments 86,931.62115,000.0089,804.672,873.053.3%(25,195.33)-21.9% Rents & Leases 376,637.30311,000.00326,094.55(50,542.75)-13.4%15,094.554.9% Contributions & Donations62,753.4720,500.0050,719.72(12,033.75)-19.2%30,219.72147.4% Other Miscellaneous Revenue123,604.5146,200.00119,753.70(3,850.81)-3.1%73,553.70159.2% YTD Total 649,926.90492,700.00586,372.64(63,554.26)-9.8%93,672.6419.0% Miscellaneous Revenues by Type Year to Date through December 2012 vs. 20112012 vs. Budget Real Estate Excise Tax (REET) revenue is receipted into the Capital Improvement Projects Fund and is used for governmental capital projects. 2012 REET revenue totaled $1.8 million and exceeds budget by $367,000. The revenue spike seen in the 4th quarter is primarily due to the sale of Auburn Regional Medical Center to Multicare. $0.0 $0.2 $0.4 $0.6 $0.8 $1.0 $1.2 $1.4 $1.6 $1.8 JanFebMarAprMayJunJulAugSepOctNovDec Mi l l i o n s Real Estate Excise Tax 2012 budget 2012 actual to date 2011 actual 13 Monthly Financial Report December 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 10,281,519.48 5,376,523.95 7,447,392.88 11,472,757.58 15,443.11 825,767.84 980,528.64 Sewer Metro Service Revenue - 13,119,303.00 - - - - - Rents, Leases, Concessions & Other - - - - 582,244.70 - 390,835.36 TOTAL OPERATING REVENUES 10,281,519.48 18,495,826.95 7,447,392.88 11,472,757.58 597,687.81 825,767.84 1,371,364.00 OPERATING EXPENSES: Administration 2,502,520.00 1,956,515.00 2,637,135.00 737,786.00 481,612.00 293,395.00 226,431.00 Operations & Maintenance 4,639,020.00 2,705,953.86 3,811,373.00 1,443,368.00 11,259.00 635,464.00 1,197,095.00 Waste Management Payments - - - 9,085,152.00 - - - Sewer Metro Services - 12,607,840.14 - - - - - Depreciation & Amortization 2,171,770.16 1,746,409.03 1,456,342.49 18,819.29 397,163.86 67,647.30 312,871.14 TOTAL OPERATING EXPENSES 9,313,310.16 19,016,718.03 7,904,850.49 11,285,125.29 890,034.86 996,506.30 1,736,397.14 OPERATING INCOME (LOSS)968,209.32 (520,891.08) (457,457.61) 187,632.29 (292,347.05) (170,738.46) (365,033.14) NON-OPERATING REVENUES & EXPENSES Interest Revenue 35,331.86 33,133.68 18,749.79 872.21 2,123.00 392.15 870.47 Other Non Operating Revenue 725,905.41 111,224.37 97,716.93 102,583.12 1,020.48 15,129.17 9,845.85 Other Non Operating Expense (28,816.34) (20,541.21) - - (50,475.00) (22,267.44) (620.06) TOTAL NON-OPERATING REVENUES (EXPENSES)732,420.93 123,816.84 116,466.72 103,455.33 (47,331.52) (6,746.12) 10,096.26 1,700,630.25 (397,074.24) (340,990.89) 291,087.62 (339,678.57) (177,484.58) (354,936.88) Contributions 476,710.40 292,615.90 583,993.49 - - - - Transfers In - - - - - 222,300.00 49,028.45 Transfers Out (50,000.00) (50,000.00) (50,000.00) - - - - TOTAL CONTRIBUTIONS & TRANSFERS 426,710.40 242,615.90 533,993.49 - - 222,300.00 49,028.45 CHANGE IN FUND BALANCE 2,127,340.65 (154,458.34) 193,002.60 291,087.62 (339,678.57) 44,815.42 (305,908.43) BEGINNING FUND BALANCE January 1, 201263,028,695.18 73,274,006.39 47,772,203.90 760,681.15 9,731,158.11 814,709.47 5,144,961.68 ENDING FUND BALANCE December 31, 201265,156,035.83 73,119,548.05 47,965,206.50 1,051,768.77 9,391,479.54 859,524.89 4,839,053.25 INCOME (LOSS) BEFORE CONTRIBUTIONS & TRANSFERS 14 Monthly Financial Report December 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 10,281,519.48 5,376,523.95 7,447,392.88 11,472,757.58 15,443.11 825,767.84 980,528.64 Sewer Metro Service Revenue - 13,119,303.00 - - - - - Rents, Leases, Concessions & Other - - - - 582,244.70 - 390,835.36 TOTAL OPERATING REVENUES 10,281,519.48 18,495,826.95 7,447,392.88 11,472,757.58 597,687.81 825,767.84 1,371,364.00 OPERATING EXPENSES: Salaries & Wages 2,088,137.74 1,384,708.50 1,912,747.72 394,378.43 19,734.46 437,638.97 562,959.98 Benefits 925,932.71 597,393.90 820,941.27 170,828.17 6,239.46 212,555.91 269,579.06 Supplies 211,126.70 64,502.12 72,206.45 44,827.72 - 151,786.23 267,053.80 Other Service Charges 2,811,344.38 1,852,265.44 2,287,388.72 987,111.07 466,897.93 60,769.48 161,921.61 Intergovernmental Services - - 20,002.51 399,507.84 - - - Waste Management Payments - - - 9,085,152.00 - - - Sewer Metro Services - 12,607,840.14 - - - - - Interfund Operating Rentals/Supplies 1,104,997.77 763,598.61 1,331,511.51 184,500.00 - 66,108.00 162,012.00 Other Expenses - 3,709.92 - - - - Depreciation & Amortization 2,171,770.16 1,746,409.03 1,456,342.49 18,819.29 397,163.86 67,647.30 312,871.14 TOTAL OPERATING EXPENSES 9,313,309.46 19,016,717.74 7,904,850.59 11,285,124.52 890,035.71 996,505.89 1,736,397.59 OPERATING INCOME (LOSS)968,210.02 (520,890.79) (457,457.71) 187,633.06 (292,347.90) (170,738.05) (365,033.59) NON-OPERATING REVENUES & EXPENSES Interest Revenue 35,331.86 33,133.68 18,749.79 872.21 2,123.00 392.15 870.47 Contributions 31,282.19 34,424.39 29,295.11 101,823.12 - 13,790.71 9,845.85 Other Non Operating Revenue 694,623.22 76,799.98 68,421.82 760.00 1,020.48 1,388.46 - Gain (Loss) on Sale of Fixed Assets - - - - - (50.00) - Debt Service Interest (28,816.34) (20,541.21) - - (50,475.00) (22,267.44) (620.06) TOTAL NON-OPERATING REVENUES (EXPENSES)732,420.93 123,816.84 116,466.72 103,455.33 (47,331.52) (6,746.12) 10,096.26 Plus Items Not Effecting Working Capital Depreciation 2,171,770.16 1,746,409.03 1,456,342.49 18,819.29 397,163.86 67,647.30 312,871.14 3,872,401.11 1,349,335.08 1,115,351.50 309,907.68 57,484.44 (109,836.87) (42,066.19) Increase in Contributions -System Development473,504.00 292,615.90 583,993.49 - - - - Increase in Contributions -Area Assessments 3,206.40 - - - - - - Increase in Contributions -Other Governments - - - - - - - Operating Transfers In - - - - - 222,300.00 49,028.45 Increase in Restricted Net Assets 14,376.40 47,337.03 - - (15,154.67) - Decrease in Long term Receivables - 45,000.00 - - - - - Increase in Deferred Credits - - - - 16,267.40 - - TOTAL RESOURCES OTHER THAN OPERATIONS491,086.80 384,952.93 583,993.49 - 1,112.73 222,300.00 49,028.45 Net Change in Restricted Net Assets 843,494.92 284,462.78 337,110.65 - (120,735.53) (50.00) (15,642.68) Increase in Fixed Assets - Salaries 167,600.29 94,969.52 62,264.36 - - - Increase in Fixed Assets - Benefits 64,494.65 37,236.28 23,975.55 - - - - Increase in Fixed Assets - Site Improvements 53,191.22 - - - 19,053.96 - - Increase in Fixed Assets - Equipment 100,334.80 - - - - - - Increase in Fixed Assets - Construction 9,385,922.76 1,775,410.07 831,829.45 - 121,911.23 - - Operating Transfers Out 50,000.00 50,000.00 50,000.00 - - - - Debt Service Principal 435,568.48 288,261.96 - - 105,000.00 - - TOTAL USES OTHER THAN OPERATIONS 11,100,607.12 2,530,340.61 1,305,180.01 - 125,229.66 (50.00) (15,642.68) NET CHANGE IN WORKING CAPITAL (6,737,119.21) (796,052.60) 394,164.98 309,907.68 (66,632.49) 112,513.13 22,604.94 BEGINNING WORING CAPITAL January 1, 201216,945,810.60 12,806,527.35 9,101,999.78 632,263.16 961,633.34 71,819.66 68,319.90 ENDING WORKING CAPITAL December 31, 201210,208,691.39 12,010,474.75 9,496,164.76 942,170.84 895,000.85 184,332.79 90,924.84 NET CHANGE IN WORKING CAPITAL (6,737,119.21) (796,052.60) 394,164.98 309,907.68 (66,632.49) 112,513.13 22,604.94 NET WORKING CAPITAL FROM OPERATIONS 15 Monthly Financial Report December 2012 The Water Utility ended December with $968,200 in net operating income and compares to $500,200 for the same period in 2011. - 200,000 400,000 600,000 800,000 1,000,000 1,200,000 1,400,000 JanFebMarAprMayJunJulAugSepOctNovDec Water Revenues ($) 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 $520,900 net operating loss and compares to a $2.2 million net loss for the same period in 2011. The Stormwater Utility ended the period with a $457,500 net operating loss which compares to $347,400 in net income for the same period last year. The net loss is the result of the timing of reimbursement from King County for the joint effort to remove the temporary flood control barrier along the Green River that was constructed during repairs to the Howard Hanson Dam. The reimbursement is currently being processed with the City set to receive full reimbursement of its expenses (approximately $1 million) sometime in 2013. The number of rounds played at the Auburn Golf Course (AGC) through December totaled 45,704 as compared to 45,968 for the same period last year. The AGC ended December with a net operating loss of $365,000 as compared to a loss of $319,100 for the same period last year. 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 2011 Actual 0 200,000 400,000 600,000 800,000 1,000,000 1,200,000 1,400,000 1,600,000 1,800,000 2,000,000 JanFebMarAprMayJunJulAugSepOctNovDec Cumulative Golf Course Operating Revenues(2012 vs 2011) 2012 Cumulative Budget 2012 Cumulative 2011 Cumulative 16 Monthly Financial Report December 2012 The Cemetery Fund ended December with a $170,700 net operating loss as compared to a $268,400 net operating loss for the same period last year, reflecting increased revenues from lot and marker sales. 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 0 100,000 200,000 300,000 400,000 500,000 600,000 700,000 800,000 900,000 1,000,000 JanFebMarAprMayJunJulAugSepOctNovDec Cumulative Cemetery Operating Revenues (2012 vs 2011) 2012 Cumulative Budget 2012 Cumulative 2011 Cumulative 17 Monthly Financial Report December 2012 Internal Service Funds The following table provides an analysis of the City’s Internal Service funds – showing 2012 revenues and expenditures by fund. InnovationEquipment InsuranceFacilities& TechnologyRental OPERATING REVENUES: Interfund Charges for Services - 3,437,100.00 4,135,104.00 2,996,939.78 Rents, Leases, Concessions & Other - 142,347.83 82,484.00 - TOTAL OPERATING REVENUES - 3,579,447.83 4,217,588.00 2,996,939.78 OPERATING EXPENSES: Administration 159,148.20 - - 734,668.00 Operations & Maintenance - 3,400,774.30 4,117,449.98 1,407,968.00 Depreciation & Amortization - - 552,388.17 759,373.37 TOTAL OPERATING EXPENSES 159,148.20 3,400,774.30 4,669,838.15 2,902,009.37 OPERATING INCOME (LOSS)(159,148.20) 178,673.53 (452,250.15) 94,930.41 NON-OPERATING REVENUES & EXPENSES Interest Revenue 3,149.26 3,633.79 5,816.73 14,903.59 Other Non Operating Revenue - 13,072.26 15,171.68 15,258.49 Gain/Loss on Sale of Fixed Assets - - - 29,214.69 Other Non Operating Expense - - - - TOTAL NON-OPERATING REVENUES (EXPENSES)3,149.26 16,706.05 20,988.41 59,376.77 INCOME (LOSS) BEFORE CONTRIBUTIONS & TRANSFERS(155,998.94) 195,379.58 (431,261.74) 154,307.18 Contributions - - 54,986.48 103,550.53 Transfers In - 300,000.00 100,170.00 100,170.00 Transfers Out - (644,787.35) - (7,000.00) TOTAL CONTRIBUTIONS & TRANSFERS - (344,787.35) 155,156.48 196,720.53 CHANGE IN FUND BALANCE (155,998.94) (149,407.77) (276,105.26) 351,027.71 BEGINNING FUND BALANCE January 1, 2012 2,184,680.02 1,570,418.73 4,350,183.06 10,135,919.06 ENDING FUND BALANCE December 31, 2012 2,028,681.08 1,421,010.96 4,074,077.80 10,486,946.77 18 Monthly Financial Report December 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. InnovationEquipment InsuranceFacilities& TechnologyRental OPERATING REVENUES: Interfund Charges for Services - 3,437,100.00 4,135,104.00 2,996,939.78 Rents, Leases, Concessions & Other - 142,347.83 82,484.00 TOTAL OPERATING REVENUES - 3,579,447.83 4,217,588.00 2,996,939.78 OPERATING EXPENSES: Salaries & Wages - 648,124.15 1,318,878.14 426,229.50 Benefits - 282,146.02 532,668.87 176,228.29 Supplies - 120,649.96 375,476.32 915,862.41 Other Service Charges 159,148.20 1,399,414.06 1,601,346.65 410,513.43 Interfund Operating Rentals/Supplies - 97,896.00 289,080.00 213,802.30 Other Expenses - 852,544.11 - - Depreciation & Amortization - - 552,388.17 759,373.37 TOTAL OPERATING EXPENSES 159,148.20 3,400,774.30 4,669,838.15 2,902,009.30 OPERATING INCOME (LOSS)(159,148.20) 178,673.53 (452,250.15) 94,930.48 NON-OPERATING REVENUES & EXPENSES Interest Revenue 3,149.26 3,633.79 5,816.73 14,903.59 Contributions - 13,072.26 - 1,712.88 Other Non Operating Revenue - - 15,171.68 13,545.61 Gain/Loss on Sale of Fixed Assets - - - 29,214.69 Other Non Operating Expense - - - - TOTAL NON-OPERATING REVENUES (EXPENSES)3,149.26 16,706.05 20,988.41 59,376.77 Plus Items Not Effecting Working Capital Depreciation - - 552,388.17 759,373.37 (155,998.94) 195,379.58 121,126.43 913,680.62 Increase in Contributions -Other Governments - - 51,756.27 - Increase in Contributions -Other Funds - - 3,230.21 103,550.53 Operating Transfers In - 300,000.00 100,170.00 100,170.00 TOTAL RESOURCES OTHER THAN OPERATIONS - 300,000.00 155,156.48 203,720.53 Net Change in Restricted Net Assets - - 3,230.21 (75,273.67) Increase in Fixed Assets - Site Improvements - - 7,497.00 18,493.46 Increase in Fixed Assets - Equipment - - 449,312.60 1,358,605.24 Increase in Fixed Assets - Construction - - 51,756.27 29,275.92 Operating Transfers Out - 644,787.35 - 7,000.00 TOTAL USES OTHER THAN OPERATIONS - 644,787.35 511,796.08 1,338,100.95 NET CHANGE IN WORKING CAPITAL (155,998.94) (149,407.77) (235,513.17) (220,699.80) BEGINNING WORING CAPITAL January 1, 2012 2,184,680.02 1,622,448.73 3,118,686.00 5,793,165.07 ENDING WORKING CAPITAL December 31, 2012 2,028,681.08 1,473,040.96 2,883,172.83 5,572,465.27 NET CHANGE IN WORKING CAPITAL (155,998.94) (149,407.77) (235,513.17) (220,699.80) NET WORKING CAPITAL FROM OPERATIONS 19 Monthly Financial Report December 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 has gradually diminished 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 DECEMBER 2012 SALES TAX DISTRIBUTIONS (FOR NOVEMBER - OCTOBER 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-Oct'11)(Nov '11-Oct'12)% Diff NAICS AUTOMOTIVE (Nov '10-Oct '11)(Nov '10-Oct'11)(Nov '11-Oct'12)% Diff 236 Construction of Buildings 582,840 582,840 483,409 -17.1%441 Motor Vehicle and Parts Dealer 2,560,962 2,560,962 2,795,164 9.1% 237 Heavy and Civil Construction 108,727 108,727 114,823 5.6%447 Gasoline Stations 224,459 224,459 223,463 -0.4% 238 Specialty Trade Contractors 604,245 604,245 622,980 3.1%TOTAL AUTOMOTIVE 2,785,421$ 2,785,421$ 3,018,627$ 8.4% TOTAL CONSTRUCTION 1,295,813$ 1,295,813$ 1,221,212$ -5.8%Overall Change from Previous Year 233,206$ Overall Change from Previous Year (74,600)$ 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-Oct'11)(Nov '11-Oct'12)% Diff NAICS MANUFACTURING (Nov '10-Oct '11)(Nov '10-Oct'11)(Nov '11-Oct'12)% Diff 442 Furniture and Home Furnishings 218,335 218,335 226,309 3.7% 311 Food Manufacturing 2,674 2,674 2,932 9.6%443 Electronics and Appliances 126,870 126,870 145,391 14.6% 312 Beverage and Tobacco Products 3,864 3,864 5,855 51.5%444 Building Material and Garden 382,504 382,504 425,494 11.2% 313 Textile Mills 959 959 570 -40.6%445 Food and Beverage Stores 330,776 330,776 341,379 3.2% 314 Textile Product Mills 2,625 2,625 4,457 69.8%446 Health and Personal Care Store 148,387 148,387 148,812 0.3% 315 Apparel Manufacturing 2,519 2,519 218 -91.4%448 Clothing and Accessories 754,407 754,407 772,153 2.4% 316 Leather and Allied Products 175 175 59 -66.4%451 Sporting Goods, Hobby, Books 126,042 126,042 120,507 -4.4% 321 Wood Product Manufacturing 24,075 24,075 31,417 30.5%452 General Merchandise Stores 967,627 967,627 967,039 -0.1% 322 Paper Manufacturing 11,026 11,026 3,944 -64.2%453 Miscellaneous Store Retailers 489,259 489,259 508,326 3.9% 323 Printing and Related Support 38,511 38,511 28,275 -26.6%454 Nonstore Retailers 235,923 235,923 268,503 13.8% 324 Petroleum and Coal Products 9,771 9,771 10,532 7.8%TOTAL RETAIL TRADE 3,780,129$ 3,780,129$ 3,923,913$ 3.8% 325 Chemical Manufacturing 7,937 7,937 8,089 1.9%Overall Change from Previous Year 143,784$ 326 Plastics and Rubber Products 9,777 9,777 9,469 -3.2% 327 Nonmetallic Mineral Products 16,218 16,218 17,324 6.8% 331 Primary Metal Manufacturing 452 452 1,766 290.4%2011 Annual Total 2011 YTD 2012 YTD YTD 332 Fabricated Metal Product Manuf 19,661 19,661 24,965 27.0%NAICS SERVICES (Nov '10-Oct '11)(Nov '10-Oct'11)(Nov '11-Oct'12)% Diff 333 Machinery Manufacturing 14,242 14,242 12,890 -9.5%51*Information 481,043 481,043 396,353 -17.6% 334 Computer and Electronic Produc 16,776 16,776 10,260 -38.8%52*Finance and Insurance 65,518 65,518 53,291 b -18.7% 335 Electric Equipment, Appliances 780 780 426 -45.4%53*Real Estate, Rental, Leasing 303,750 303,750 326,259 7.4% 336 Transportation Equipment Man 362,149 362,149 187,175 a -48.3%541 Professional, Scientific, Tech 174,718 174,718 173,274 -0.8% 337 Furniture and Related Products 13,135 13,135 18,721 42.5%551 Company Management 351 351 16 -95.5% 339 Miscellaneous Manufacturing 25,531 25,531 25,368 -0.6%56*Admin. Supp., Remed Svcs 294,603 294,603 334,354 13.5% TOTAL MANUFACTURING 582,858$ 582,858$ 404,712$ -30.6%611 Educational Services 52,563 52,563 53,672 2.1% Overall Change from Previous Year (178,146)$ 62*Health Care Social Assistance 40,737 40,737 114,833 181.9% 71*Arts and Entertainment 148,629 148,629 153,417 3.2% 72*Accomodation and Food Svcs 838,924 838,924 920,556 9.7% 2011 Annual Total 2011 YTD 2012 YTD YTD 81*Other Services 389,241 389,241 388,279 -0.2% NAICS TRANSPORTATION AND WAREHOUSING (Nov '10-Oct '11)(Nov '10-Oct'11)(Nov '11-Oct'12)% Diff 92*Public Administration 92,163 92,163 142,188 54.3% 481 Air Transportation 24 24 - -100.0%TOTAL SERVICES 2,882,241$ 2,882,241$ 3,056,492$ 6.0% 482 Rail Transportation 17,831 17,831 19,182 7.6%Overall Change from Previous Year 174,251$ 484 Truck Transportation 36,261 36,261 10,245 -71.7% 485 Transit and Ground Passengers 68 68 268 292.1% 488 Transportation Support 18,083 18,083 18,841 4.2%2011 Annual Total 2011 YTD 2012 YTD YTD 491 Postal Service 202 202 470 132.2%NAICS MISCELLANEOUS (Nov '10-Oct '11)(Nov '10-Oct'11)(Nov '11-Oct'12)% Diff 492 Couriers and Messengers 1,492 1,492 568 -61.9%000 Unknown 1,958 1,958 1 -99.9% 493 Warehousing and Storage 3,121 3,121 5,376 72.2%111-115 Agriculture, Forestry, Fishing 7,355 7,355 2,868 -61.0% TOTAL TRANSPORTATION 77,083$ 77,083$ 54,952$ -28.7%211-221 Mining & Utilities 21,830 21,830 30,229 38.5% Overall Change from Previous Year (22,131)$ 999 Unclassifiable Establishments 192,496 192,496 27,601 -85.7% TOTAL SERVICES 223,639$ 223,639$ 60,699$ -72.9% Overall Change from Previous Year (162,940)$ 2011 Annual Total 2011 YTD 2012 YTD YTD NAICS WHOLESALE TRADE (Nov '10-Oct '11)(Nov '10-Oct'11)(Nov '11-Oct'12)% Diff 423 Wholesale Trade, Durable Goods 1,095,905 1,095,905 1,137,932 3.8%GRAND TOTAL 12,887,267$ 12,887,267$ 13,037,326$ 424 Wholesale Trade, Nondurable 150,480 150,480 153,721 2.2%Overall Change from Previous Year 150,058$ 1.2% 425 Wholesale Electronic Markets 13,698 13,698 5,065 -63.0% TOTAL WHOLESALE 1,260,083$ 1,260,083$ 1,296,718$ 2.9% Overall Change from Previous Year 36,635$ 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: -$20,014). 12/27/12 file:Monthly Sales Tax Report.xls Prepared by Auburn Finance Department 21 Investment Purchase Purchase Maturity Yield to Type Date Price Date Maturity State Investment Pool Various 80,248,588$ Various 0.24% KeyBank Money Market Various 10,342,061 Various 0.15% US Treasury 05/04/1990 57,750 05/15/2016 5.72% Total Cash & Investments 90,648,400$ 0.229% Investment Mix % of Total State Investment Pool 88.5%Current 6-month treasury rate 0.12% KeyBank Money Market 11.4%Current State Pool rate 0.24% US Treasury 0.1%KeyBank Money Market 0.15% Blended Auburn rate 0.23% 100.0% City of Auburn Investment Portfolio Summary December 31, 2012 Summary 22