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HomeMy WebLinkAboutMarch 2013 AGENDA BILL APPROVAL FORM Agenda Subject: March 2013 Financial Report Date: May 2, 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 March status report is based on financial data available as of April 18, 2013. Sales tax information represents business activity that occurred in January 2013. 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. Through the first quarter of 2013, general fund expenses totaled $12.5 million and compare to expenditures of $11.0 million for the same period last year. The increase in year-over-year expenses are mostly due to the payment of SCORE debt service principal (prior to 2013, debt service payments were interest only) and increased payments for incarceration services (current period payments are based upon prior year City inmate counts). General fund revenues through the first quarter of 2013 was $10.6 million were not sufficient to meet General Fund expenditures and compare to prior year actuals of $9.6 million. The increase in revenue is primarily due to increased new construction activity and the related fees (building permits and plan check fees) generated from this activity. During the month of March, 625 pet licenses were sold resulting in $16,360.00 in revenue. Year-to-date, 1,256 licenses have been sold bringing in a total of $34,510.00. Enterprise Funds: The City’s eight enterprise funds account for operations with revenues primarily provided from user fees, charges or contracts for services. Through the end of the first quarter, the financial condition of each of the City’s three utilities improved over the previous year. The Water fund ended the quarter with an operating income of $7,700.00 (as compared to an operating loss of $44,000.00 in the previous year); the Sewer fund ended with a $304,800.00 operating loss (as compared to an operating loss of $431,700.00 the previous year, excluding Metro); the Sewer-Metro Utility ended the first quarter a net operating loss of $179,800.00; and the Storm Drainage fund ended with operating income of $330,400.00 (as compared to an operating income of $253,000.00 the previous year). The financial condition of the Golf Course improved over the previous year, ending the first quarter with an operating loss of $254,100.00 as compared to an operating loss of $284,300.00 for the same period last year. The improvement in the Golf Course financial performance reflect an increase in year-to-date rounds played – 5,589 as compared to 4,751 the previous year. 1 Agenda Subject: March 2013 Financial Report Date: 5/2/2013 The financial condition of the Cemetery improved over the previous year, ending with a $31,000.00 net operating income compared to an operating loss of $32,400.00 for the previous year. The improvement in the Cemetery reflect an increase in operating revenue and a decrease in salaries/benefits expenditures. This is the best quarter the Cemetery has experienced in the past five years and is primarily due to the reduction of one FTE and strong marketing efforts. Internal Service Funds: Internal Service Funds provide services to other City departments and include functions such as Insurance, Facilities, Innovation and Technology, 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 March was $105.2 million, compared to $91.8 million the month prior. The increase in cash reflect proceeds received from the sale of utility construction revenue bonds in March. 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: May 20, 2013 Item Number: 2 Monthly Financial Report March 2013 General Fund 2012 Summary of Sources and Uses Annual BudgetYTD BudgetYTD ActualYTD ActualAmountPercentage Operating Revenues Property Tax 14,299,417.00548,900.00 623,011.30457,024.22 74,111.30 13.5% Sales Tax 11,695,309.002,812,900.003,037,855.073,017,518.74224,955.07 8.0% Sales Tax - Annexation Credit 1,397,602.00335,700.00403,738.59359,032.45 68,038.59 20.3% Criminal Justice Sales Tax 1,225,059.00299,200.00378,229.20 343,891.17 79,029.20 26.4% Brokered Natural Gas Tax 301,500.00 110,500.00 98,078.85 113,313.28 (12,421.15)-11.2% City Utilities Tax 2,991,933.00695,500.00860,062.50627,942.30 164,562.50 23.7% Admissions Tax 363,609.00 62,100.00 61,538.80 57,778.73 (561.20)-0.9% Electric Tax 3,340,500.00857,000.00786,368.23812,586.09 (70,631.77)-8.2% Natural Gas Tax 1,201,900.00303,300.00244,173.48295,288.92 (59,126.52)-19.5% Cable TV Franchise Fee 808,000.00204,100.00 212,145.32202,201.09 8,045.32 3.9% Cable TV Franchise Fee - Capital 62,000.00 15,600.00 15,820.88 15,823.75 220.88 1.4% Telephone Tax 2,032,574.00505,300.00395,980.31481,944.03(109,319.69)-21.6% Garbage Tax (external)151,504.00 43,400.00 24,046.44 34,708.72 (19,353.56)-44.6% Leasehold Excise Tax 50,501.00 8,400.00 10,350.27 2,400.87 1,950.27 23.2% Gambling Excise Tax 247,965.00 61,000.00 73,914.33 66,941.83 12,914.33 21.2% Taxes sub-total 40,169,373.006,862,900.007,225,313.576,888,396.19362,413.57 5.3% Business License Fees 202,005.00 85,100.00 82,365.00103,349.50 (2,735.00)-3.2% Building Permits 1,182,066.00179,500.00760,504.53249,624.75 581,004.53 323.7% Other Licenses & Permits 454,413.00 65,600.00159,658.25 70,317.32 94,058.25 143.4% Intergovernmental (Grants, etc.) - (1)4,764,784.001,116,400.001,153,548.581,151,127.03 37,148.58 3.3% Charges for Services: General Government Services 94,467.00 24,200.00 31,459.74 31,763.17 7,259.74 30.0% Public Safety 17,300.00 4,800.00 8,999.75 59,263.25 4,199.75 87.5% Development Services Fees 832,458.00153,500.00 291,244.41236,173.70 137,744.41 89.7% Culture and Recreation 809,717.00213,600.00 234,416.51220,236.78 20,816.51 9.7% Fines and Forfeits 1,556,500.00 441,100.00 356,040.88 425,426.33 (85,059.12)-19.3% Fees/Charges/Fines sub-total 9,913,710.002,283,800.003,078,237.652,547,281.83794,437.65 34.8% Interests and Other Earnings 64,900.00 13,500.00 11,916.65 18,279.06 (1,583.35)-11.7% Rents, Leases and Concessions 308,000.00 83,000.00 67,390.73 67,907.28 (15,609.27)-18.8% Contributions and Donations 30,000.00 5,700.00 5,614.79 12,494.25 (85.21)-1.5% Other Miscellaneous 92,200.00 12,200.00 17,066.20 16,833.35 4,866.20 39.9% Transfers In 193,000.00193,000.00 119,548.00 17,000.00 (73,452.00)-38.1% Insurance Recoveries- Capital & Operating 25,000.00 3,767.51 30,441.98 17,884.64 26,674.47 708.0% Other Revenues sub-total 713,100.00311,167.51251,978.35150,398.58(59,189.16)-19.0% Total Operating Revenues 50,796,183.009,457,867.5110,555,529.579,586,076.601,097,662.06 11.6% Operating Expenditures Council & Mayor 980,162.99233,600.00249,469.03228,163.49 (15,869.03)-6.8% Municipal Court & Probation 556,623.39 127,900.00 92,902.74 718,933.83 34,997.26 27.4% Human Resources 1,596,800.00372,700.00337,727.86200,803.98 34,972.14 9.4% Finance 1,315,343.78302,600.00280,588.74255,324.80 22,011.26 7.3% City Attorney 1,769,579.17403,700.00 411,755.62365,695.48 (8,055.62)-2.0% Planning 3,972,214.94993,053.74 981,792.12 914,046.90 11,261.61 1.1% Community & Human Services 1,262,884.74 281,600.00 251,737.10 222,610.91 29,862.90 10.6% Jail - SCORE 6,676,146.001,566,661.501,649,016.71286,979.45 (82,355.21)-5.3% Police 19,468,675.214,864,200.004,629,326.194,517,580.09 234,873.81 4.8% Engineering 2,800,821.47670,500.00 616,818.25607,345.55 53,681.75 8.0% Parks and Recreation 7,882,428.411,814,200.001,862,607.771,706,052.78 (48,407.77)-2.7% Streets 3,269,523.35 712,900.00628,727.80601,549.73 84,172.20 11.8% Non-Departmental 3,567,437.00951,859.25494,447.07387,544.34 457,412.18 48.1% Total Operating Expenditures 55,118,640.4513,295,474.4912,486,917.0011,012,631.33808,557.48 6.1% 2013 2013 YTD Budget vs. Actual Favorable (Unfavorable) (1) Streamlined Sales Tax mitigation payments represent intergovernmental revenues from the State of Washington and are presented above in the Intergovernmental Revenue category. The first quarter payment for 2013 was receipted in for the amount of $478,666.20 and compares to budget of $514,200.00 for the quarter. The anticipated Streamlined Sales Tax mitigation payments for 2013 is $2,000,000.00. 3 Monthly Financial Report March 2013 Overview This financial overview reflects the City’s overall financial position for the fiscal period ending March 31, 2013 and represents financial data available as of April 18, 2013. The budgeted year- to-date revenues and operating expenses are primarily based on collection/disbursement average for the same period of the two years prior. Through the first quarter of 2013, General Fund revenues totaled $10.6 million. Significant activity includes revenue from building permit and development service fees, which continue to perform above budget due to increased construction activity. Major projects around the City that are contributing to increased building permit revenues include the Auburn High School Modernization project, the Franciscan Medical Pavilion-Auburn, Green River Community College Trades Building, tenant improvements at the Outlet Collection – Seattle, and several subdivisions including The Ridge at Bowman Creek, Lakeland East, and Kersey III. General Fund expenses totaled $12.5 million and compare to budget of $11.0 million the previous year, increase of which is attributable to the payment of the City’s share of SCORE debt service and the operations and maintenance costs which are based on the prior year average adult daily population. While expenses to-date are increased over the previous year, year-to- date expenses are within expectations and total 22.3% of the annual budget (target is 25%). 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 $623,000 and compare to $457,000 collected the same period last year. Year to date property taxes collected are running $74,000 higher than budget because 100% of property tax is being retained in the General Fund compared to 87% in 2012.1 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 $16.0 JanFebMarAprMayJunJulAugSepOctNovDec Mi l l i o n s Property Taxes 2013 budget 2013 actual to date 2012 actual 1 Per City Council policy, effective January 2013, $2.0 million of City property taxes are no longer transferred to the Local Street Fund (Fund 103) for local street repair and maintenance and is replaced with a transfer of sales taxes from new construction. 4 Monthly Financial Report March 2013 Sales taxes, excluding transfers to construction* totaled $3.0 million and exceed budget by $225,000 through the first quarter of the year. * Per City Council policy, effective January 2013, all sales tax revenue from construction is transferred to the Local Street Fund (Fund 103) for local street repair and maintenance. $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 2013 budget 2013 actual to date 2012 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. 2012 actuals for the Manufacturing sector include an adjustment of $74,000 by the State Department of Revenue as a result of an audit 20122013 Component GroupActualActualAmountPercentage Construction 282,028.34400,915.03118,886.6942.2% Manufacturing 44,882.03166,306.30121,424.27270.5% Transportation & Warehousing12,567.057,457.29(5,109.76)-40.7% Wholesale Trade 306,681.96278,924.69(27,757.27)-9.1% Automotive 654,606.06710,566.1755,960.118.5% Retail Trade 1,032,419.931,108,746.8676,326.937.4% Services 714,689.00779,476.9864,787.98 9.1% Miscellaneous 9,352.6224,427.8515,075.23161.2% YTD Total 3,057,226.993,476,821.17419,594.1813.7% Change from 2012 March-2013 Comparison of Sales Tax Collections by SIC Group As shown above, the areas showing the largest amount of change include construction and retail trade, reflecting the increased level of construction activity and improvement in consumer confidence. In general, consumer spending accounts for approximately two-thirds of economic activity. 5 Monthly Financial Report March 2013 Year to date sales tax revenue on construction, which are transferred to the Local Street Fund (Fund 103) for local street repair and maintenance, totaled $401,000. $0.0 $0.2 $0.4 $0.6 $0.8 $1.0 $1.2 $1.4 $1.6 JanFebMarAprMayJunJulAugSepOctNovDec Mi l l i o n s Sales Tax on Construction Transfer 2013 budget 2013 actual to date 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). Utility tax collections through March was $2.3 million and are comparable to collections for the same period last year. $0.0 $2.0 $4.0 $6.0 $8.0 $10.0 $12.0 JanFebMarAprMayJunJulAugSepOctNovDec Mi l l i o n s Utility Tax 2013 budget 2013 actual to date 2012 actual 6 Monthly Financial Report March 2013 As shown in the table below, collections from City interfund utilities partially offset lower than expected collections from private utility providers. A mild winter has reduced consumer heating demands and resulted in year-over-year declines in electric and natural gas revenue collections. Telephone utility taxes are lower than the previous year, reflecting the timing of March utility tax payments. These payments are expected to be received in April and will be reflected in the next month’s financial report. 201220132013 Month ActualBudgetActualAmountPercentageAmountPercentage City Interfund Utility Taxes627,942.30695,500.00860,062.50232,120.2037.0%164,562.5023.7% Electric 812,586.09857,000.00786,368.23(26,217.86)-3.2%(70,631.77)-8.2% Natural Gas 295,288.92303,300.00244,173.48(51,115.44)-17.3%(59,126.52)-19.5% Telephone 481,944.03505,300.00395,980.31(85,963.72)-17.8%(109,319.69)-21.6% Garbage (external)34,708.7243,400.0024,046.44(10,662.28)-30.7%(19,353.56)-44.6% YTD Total 2,252,470.062,404,500.002,310,630.9658,160.902.6%(93,869.04)-3.9% March-2013 Utility Tax by Type 2013 vs. 2012 2013 vs. Budget Cable TV Franchise Fees, which are collected quarterly, totaled $212,000 and are on target with budget and historical actuals. $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 2013 budget 2013 actual to date 2012 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. Total building permit revenues through March was $761,000 and exceeded both budget and prior year actual. Major projects include Auburn High School Reconstruction and Modernization project (building permit fees collected in February), the Franciscan Medical Pavilion-Auburn as well as several housing developments including Lakeland East and Kersey III. 7 Monthly Financial Report March 2013 $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 2013 budget 2013 actual to date 2012 actual Business License revenues totaled $82,000 and reflect the timing of payments by business owners. The majority of business license payments are collected in December of the previous year and during the first two months of the current year. $0 $50 $100 $150 $200 $250 JanFebMarAprMayJunJulAugSepOctNovDec Th o u s a n d s Business Licenses 2013 budget 2013 actual to date 2012 actual 8 Monthly Financial Report March 2013 Intergovernmental includes Grants (Direct & Indirect Federal, State and Local), state shared revenues and compact revenue from the Muckleshoot Indian Tribe (MIT). Collections to date total $1.2 million and are running $37,000, or 3.3% higher, due to state grant revenue collections. State shared revenue includes $478,666.20 in Streamlined Sales Tax mitigation payments. 201220132013 Revenue ActualBudgetActual% ChangeAmount% Change Federal Grants 0.00 0.00 0.00 N/A0.00 N/A State Grants 7,017.084,000.0027,620.48 293.6%23,620.48590.5% Interlocal Grants 2,500.00600.002,000.00-20.0%1,400.00 233.3% State Shared Revenue 978,328.95936,800.00933,760.40 -4.6%(3,039.60)-0.3% Muckleshoot Casino Emerg.163,281.00175,000.00182,594.00 11.8%7,594.00 4.3% Intergovernmental Service 0.00 0.007,573.70 0.0%7,573.70 N/A YTD Total 1,151,127.031,116,400.001,153,548.58 0.2%37,148.58 3.3% March-2013 Intergovernmental 2013 vs. 20122013 vs. Budget Charges for Services consists of general governmental services, public safety, development service fees and cultural & recreation fees. Development service fees and culture and recreation fees make up over 85% of the revenue within this category. Development service fee collections this period reflect revenues as a result of City utility extension projects as well as plan check fees related to the Green River Community College Trades Building and several housing developments including Brandon Meadows, Vista Pointe and Kendall Ridge. Culture and recreation revenues are improved over 2012 levels and are $21,000 higher than budget; reflecting increased activity from City special events, senior citizen programs, recreational class registrations and league enrollments. The year-over-year decline in Public Safety charges reflect the elimination of Adult Probation revenue (these revenues are retained by King County under the City-King County District Court contract). 201220132013 Revenue ActualBudgetActualAmountPercentageAmountPercentage General Government31,763.1724,200.0031,459.74(303.43)-0.96%7,259.7430.00% Public Safety 59,263.254,800.008,999.75(50,263.50)-84.8%4,199.7587.5% Development Services236,173.70153,500.00291,244.4155,070.7123.3%137,744.4189.7% Culture & Recreation220,236.78213,600.00234,416.5114,179.736.4%20,816.519.7% YTD Total547,436.90396,100.00566,120.4118,683.513.4%170,020.4142.9% March-2013 Charges for Services by Type 2013 vs. 20122013 vs. Budget 9 Monthly Financial Report March 2013 $0 $200 $400 $600 $800 $1,000 $1,200 $1,400 JanFebMarAprMayJunJulAugSepOctNovDec Th o u s a n d s Development Service Fees 2013 budget 2013 actual to date 2012 actual $0 $100 $200 $300 $400 $500 $600 $700 $800 $900 $1,000 JanFebMarAprMayJunJulAugSepOctNovDec Th o u s a n d s Culture & Recreation 2013 budget 2013 actual to date 2012 actual 10 Monthly Financial Report March 2013 Fines & Penalties include traffic and parking infraction penalties, Redflex photo enforcement violations, criminal fines (including criminal traffic, criminal non traffic and criminal costs) as well as non court fines such as false alarm and shopping cart fines. Total revenue to date is $356,000 compared to budget of $441,000 due primarily to civil infraction penalties, which are running below budget due to fewer filings at the court. 201220132013 Month ActualBudgetActualAmountPercentageAmountPercentage Civil Penalties 4,234.853,700.003,360.44(874.41)-20.6%(339.56)-9.2% Civil Infraction Penalties178,525.58192,000.00115,484.33(63,041.25)-35.3%(76,515.67)-39.9% Red Light Photo Enforcement153,119.38140,000.00149,072.42(4,046.96)-2.6%9,072.426.5% Parking Infractions 27,764.9644,300.0031,394.703,629.7413.1%(12,905.30)-29.1% Criminal Traffic Misdemeanor27,943.5324,900.0015,445.92(12,497.61)-44.7%(9,454.08)-38.0% Criminal Non-Traffic Fines20,605.7323,100.0015,630.10(4,975.63)-24.1%(7,469.90)-32.3% Criminal Costs 4,045.973,500.006,407.232,361.2658.4%2,907.2383.1% Non-Court Fines & Penalties9,186.339,600.0019,245.7410,059.41109.5%9,645.74100.5% YTD Total 425,426.33441,100.00356,040.88(69,385.45)-16.3%(85,059.12)-19.3% March-2013 Fines & Forfeits by Type 2013 vs. 20122013 vs. Budget $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 Fines & Penalties 2013 budget 2013 actual to date 2012 actual 11 Monthly Financial Report March 2013 $0 $100 $200 $300 $400 $500 $600 $700 JanFebMarAprMayJunJulAugSepOctNovDec Th o u s a n d s Photo Enforcement 2013 budget 2013 actual to date 2012 actual Miscellaneous revenues primarily consist of income from facility rentals; other sources within this category include investment earnings, contributions & donations and other miscellaneous income. Revenues in this category totaled $102,000 and were below budget by $12,000 primarily due to reduced facility rental revenues. 201220132013 Month ActualBudgetActualAmountPercentageAmountPercentage Interest & Investments 18,279.0613,500.0011,916.65(6,362.41)-34.8%(1,583.35)-11.7% Rents & Leases 67,907.2883,000.0067,390.73(516.55)-0.8%(15,609.27)-18.8% Contributions & Donations12,494.255,700.005,614.79(6,879.46)-55.1%(85.21)-1.5% Other Miscellaneous Revenue16,833.3512,200.0017,066.20232.851.4%4,866.2039.9% YTD Total 115,513.94114,400.00101,988.37(13,525.57)-11.7%(12,411.63)-10.8% Miscellaneous Revenues by Type March-2013 2013 vs. 20122013 vs. Budget 12 Monthly Financial Report March 2013 Real Estate Excise Tax (REET) revenue is receipted into the Capital Improvement Projects Fund and is used for governmental capital projects. Total revenue at the end of March was $365,000 and exceeds budget and prior year actuals by $49,000 and $10,000 respectively, reflecting local and regional improvement in real estate transactions. $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 2013 budget 2013 actual to date 2012 actual 13 Monthly Financial Report March 2013 Pet Licensing During the month of March, 625 pet licenses were sold resulting in $16,360 in revenue. Year-to- date, 1,256 licenses have been sold bringing in a total of $34,510. 0 100 200 300 400 500 600 700 800 900 1000 $0 $2,000 $4,000 $6,000 $8,000 $10,000 $12,000 $14,000 $16,000 $18,000 JanFebMarAprMayJunJulAugSepOctNovDec Pet Licensing Revenue & Sales By Month 2013 2013 License Revenue (L)2013 Licenses Sold (R) Enterprise Funds The detailed Working Capital and Fund Balance statements for Enterprise and Internal Service funds can be found in the Appendix at the end of this Report. The Water Utility ended March with $7,700 in net operating income and compares to a $43,800 net operating loss for the same period in 2012, reflecting an increase in water sales revenue, while water usage is remaining relatively stable. 0 200,000 400,000 600,000 800,000 1,000,000 1,200,000 1,400,000 JanFebMarAprMayJunJulAugSepOctNovDec Water Revenues vs Water Sold 2013 vs 2012 2012 Water Sales ($) 2013 Water Sales ($) 2012 Water Sold (ccf) 2013 Water Sold (ccf) 14 Monthly Financial Report March 2013 The Sewer Utility ended the period with a $304,800 net operating loss and compares to a $431,700 net loss for the same period in 2012 (excluding Metro wastewater treatment revenues and expenses, which are now being tracked separately in the Sewer-Metro fund). The Sewer- Metro Utility ended the first quarter a net operating loss of $179,800. The Stormwater Utility ended the period with $330,400 in net operating income which compares to $253,000 in net income for the same period last year. The number of rounds played at the Auburn Golf Course (AGC) in March totaled 2,548 which compares to 1,939 for the same period last year. Year-to-date rounds total 5,589 compared to 4,751 rounds in 2012. Improvement in golf course activity has helped to reduce the AGC net operating loss to $254,100 as compared to a loss of $284,300 for the same period last year. 0 50,000 100,000 150,000 200,000 250,000 300,000 JanFebMarAprMayJunJulAugSepOctNovDec Golf Course Operating Revenues & Expenses By Month 2013 vs 2012 2013 Bud. Revenue 2013 Act. Revenue 2012 Act. Revenue 2013 Act. Expenses 0 200,000 400,000 600,000 800,000 1,000,000 1,200,000 1,400,000 1,600,000 JanFebMarAprMayJunJulAugSepOctNovDec Cumulative Golf Course Revenues & Expenses 2013 vs 2012 2013 Bud. Revenue 2013 Act. Revenue 2012 Act. Revenue 2013 Act. Expenses 15 Monthly Financial Report March 2013 The Cemetery Fund ended March with $31,000 in net operating income compared to a $32,400 net operating loss for the same period last year and reflect a decline in Cemetery operating expenses and an increase in operating revenue. 0 20,000 40,000 60,000 80,000 100,000 120,000 JanFebMarAprMayJunJulAugSepOctNovDec Cemetery Operating Revenues & Expenses By Month 2013 vs 2012 2013 Bud. Revenue 2013 Act. Revenue 2012 Act. Revenue 2013 Act. Expenses 0 100,000 200,000 300,000 400,000 500,000 600,000 700,000 800,000 900,000 JanFebMarAprMayJunJulAugSepOctNovDec Cumulative Cemetery Revenues & Expenses 2013 vs 2012 2013 Bud. Revenue 2013 Act. Revenue 2012 Act. Revenue 2013 Act. Expenses 16 Monthly Financial Report March 2013 Internal Service Funds Operating expenses within the Insurance Fund represents the premium cost-pool that will be allocated monthly to other City funds over the course of 2013. As a result, this balance will gradually diminish each month throughout the 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. 17 SALES TAX SUMMARY MARCH 2013 SALES TAX DISTRIBUTIONS (FOR JANUARY 2013 RETAIL ACTIVITY) 2012 Annual Total 2012 YTD 2013 YTD YTD 2012 Annual Total 2012 YTD 2013 YTD YTD NAICS CONSTRUCTION (Nov '11-Oct '12)(Nov '11 - Jan '12)(Nov '12 - Jan '13)% Diff NAICS AUTOMOTIVE (Nov '11-Oct '12)(Nov '11 - Jan '12)(Nov '12 - Jan '13)% Diff 236 Construction of Buildings 483,408.87 104,019.42 179,393.70 72.5%441 Motor Vehicle and Parts Dealer 2,795,163.85 599,011.50 651,573.08 8.8% 237 Heavy and Civil Construction 114,822.92 33,335.77 20,692.46 -37.9%447 Gasoline Stations 223,463.26 55,594.56 58,993.09 6.1% 238 Specialty Trade Contractors 622,980.45 144,673.15 200,828.87 38.8%TOTAL AUTOMOTIVE 3,018,627.11$ 654,606.06$ 710,566.17$ 8.5% TOTAL CONSTRUCTION 1,221,212.24$ 282,028.34$ 400,915.03$ 42.2%Overall Change from Previous Year 55,960.11$ Overall Change from Previous Year 118,886.69$ 2012 Annual Total 2012 YTD 2013 YTD YTD 2012 Annual Total 2012 YTD 2013 YTD YTD NAICS RETAIL TRADE (Nov '11-Oct '12)(Nov '11 - Jan '12)(Nov '12 - Jan '13)% Diff NAICS MANUFACTURING (Nov '11-Oct '12)(Nov '11 - Jan '12)(Nov '12 - Jan '13)% Diff 442 Furniture and Home Furnishings 226,308.94 60,105.62 60,231.90 0.2% 311 Food Manufacturing 2,932.07 923.43 338.52 -63.3%443 Electronics and Appliances 145,390.62 40,961.74 45,533.83 11.2% 312 Beverage and Tobacco Products 5,855.42 965.47 2,016.48 108.9%444 Building Material and Garden 425,493.64 87,776.58 89,472.77 1.9% 313 Textile Mills 569.85 35.63 38.97 9.4%445 Food and Beverage Stores 341,378.74 81,240.86 79,820.06 -1.7% 314 Textile Product Mills 4,456.85 644.84 784.43 21.6%446 Health and Personal Care Store 148,812.47 43,086.75 41,272.86 -4.2% 315 Apparel Manufacturing 217.67 154.48 143.84 -6.9%448 Clothing and Accessories 772,153.02 207,849.12 248,545.06 19.6% 316 Leather and Allied Products 58.91 39.54 1.25 -96.8%451 Sporting Goods, Hobby, Books 120,507.49 37,668.52 38,085.48 1.1% 321 Wood Product Manufacturing 31,417.29 4,341.73 22,151.02 410.2%452 General Merchandise Stores 967,039.39 282,096.04 283,030.42 0.3% 322 Paper Manufacturing 3,943.50 1,029.16 965.27 -6.2%453 Miscellaneous Store Retailers 508,326.14 116,556.91 133,916.84 14.9% 323 Printing and Related Support 28,275.22 8,858.25 5,316.72 -40.0%454 Nonstore Retailers 268,502.71 75,077.79 88,837.64 18.3% 324 Petroleum and Coal Products 10,532.00 2,226.89 2,912.51 30.8%TOTAL RETAIL TRADE 3,923,913.16$ 1,032,419.93$ 1,108,746.86$ 7.4% 325 Chemical Manufacturing 8,088.54 1,297.94 1,941.54 49.6%Overall Change from Previous Year 76,326.93$ 326 Plastics and Rubber Products 9,468.87 2,772.65 2,627.72 -5.2% 327 Nonmetallic Mineral Products 17,323.71 3,499.91 4,006.01 14.5% 331 Primary Metal Manufacturing 1,765.68 849.92 16.03 -98.1%2012 Annual Total 2012 YTD 2013 YTD YTD 332 Fabricated Metal Product Manuf 24,964.99 2,663.73 16,891.59 534.1%NAICS SERVICES (Nov '11-Oct '12)(Nov '11 - Jan '12)(Nov '12 - Jan '13)% Diff 333 Machinery Manufacturing 12,890.22 3,738.45 3,270.06 -12.5%51*Information 396,353.38 96,633.05 108,257.71 12.0% 334 Computer and Electronic Produc 10,260.16 1,258.00 2,622.81 108.5%52*Finance and Insurance 53,290.56 b (1,501.37)25,839.04 -1821.0% 335 Electric Equipment, Appliances 426.32 175.90 228.66 30.0%53*Real Estate, Rental, Leasing 326,259.42 85,918.73 73,598.38 -14.3% 336 Transportation Equipment Man 187,175.19 a 307.04 89,187.79 28947.6%541 Professional, Scientific, Tech 173,274.20 47,118.77 43,837.47 -7.0% 337 Furniture and Related Products 18,721.33 3,917.31 4,627.35 18.1%551 Company Management 15.78 3.98 0.51 -87.2% 339 Miscellaneous Manufacturing 25,368.10 5,181.76 6,217.73 20.0%56*Admin. Supp., Remed Svcs 334,354.06 65,192.58 78,591.24 20.6% TOTAL MANUFACTURING 404,711.89$ 44,882.03$ 166,306.30$ 270.5%611 Educational Services 53,671.83 13,089.46 12,537.37 -4.2% Overall Change from Previous Year 121,424.27$ 62*Health Care Social Assistance 114,832.81 11,442.81 22,250.46 94.4% 71*Arts and Entertainment 153,417.34 71,104.10 70,090.24 -1.4% 72*Accomodation and Food Svcs 920,555.95 214,405.72 229,565.11 7.1% 2012 Annual Total 2012 YTD 2013 YTD YTD 81*Other Services 388,278.72 92,944.75 94,915.80 2.1% NAICS TRANSPORTATION AND WAREHOUSING (Nov '11-Oct '12)(Nov '11 - Jan '12)(Nov '12 - Jan '13)% Diff 92*Public Administration 142,187.99 18,336.42 19,993.65 9.0% 481 Air Transportation 0.00 0.00 0.00 N/A TOTAL SERVICES 3,056,492.04$ 714,689.00$ 779,476.98$ 9.1% 482 Rail Transportation 19,181.85 2,178.39 5,876.86 169.8%Overall Change from Previous Year 64,787.98$ 484 Truck Transportation 10,245.48 4,009.75 c (8,592.42)-314.3% 485 Transit and Ground Passengers 268.22 212.28 88.36 -58.4% 488 Transportation Support 18,841.37 4,230.84 5,204.85 23.0%2012 Annual Total 2012 YTD 2013 YTD YTD 491 Postal Service 470.02 60.91 248.01 307.2%NAICS MISCELLANEOUS (Nov '11-Oct '12)(Nov '11 - Jan '12)(Nov '12 - Jan '13)% Diff 492 Couriers and Messengers 568.35 140.74 239.92 70.5%000 Unknown 1.04 1.04 0.00 -100.0% 493 Warehousing and Storage 5,376.49 1,734.14 4,391.71 153.3%111-115 Agriculture, Forestry, Fishing 2,868.29 369.86 1,263.15 241.5% TOTAL TRANSPORTATION 54,951.78$ 12,567.05$ 7,457.29$ -40.7%211-221 Mining & Utilities 30,228.91 5,318.53 4,256.32 -20.0% Overall Change from Previous Year (5,109.76)$ 999 Unclassifiable Establishments 27,601.09 3,663.19 18,908.38 416.2% TOTAL SERVICES 60,699.33$ 9,352.62$ 24,427.85$ 161.2% Overall Change from Previous Year 15,075.23$ 2012 Annual Total 2012 YTD 2013 YTD YTD NAICS WHOLESALE TRADE (Nov '11-Oct '12)(Nov '11 - Jan '12)(Nov '12 - Jan '13)% Diff 423 Wholesale Trade, Durable Goods 1,137,932.04 274,763.62 240,324.83 -12.5%GRAND TOTAL 13,037,325.52$ 3,057,226.99$ 3,476,821.17$ 424 Wholesale Trade, Nondurable 153,721.30 30,657.46 37,585.17 22.6%Overall Change from Previous Year 419,594.18$ 13.7% 425 Wholesale Electronic Markets 5,064.63 1,260.88 1,014.69 -19.5% TOTAL WHOLESALE 1,296,717.97$ 306,681.96$ 278,924.69$ -9.1% Overall Change from Previous Year (27,757.27)$ 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). c. Wa. State Dept of Revenue audit adjustment to sales tax returns for period Jan 2013 (adjustment: -$11,382). 03/25/13 file:Monthly Sales Tax Report.xls Prepared by Auburn Finance Department 18 Investment Purchase Purchase Maturity Yield to Type Date Price Date Maturity State Investment Pool Various 94,283,999$ Various 0.18% KeyBank Money Market Various 10,897,339 Various 0.15% US Treasury 05/04/1990 57,750 05/15/2016 5.72% Total Cash & Investments 105,239,089$ 0.179% Investment Mix % of Total State Investment Pool 89.6%Current 6-month treasury rate 0.11% KeyBank Money Market 10.4%Current State Pool rate 0.18% US Treasury 0.1%KeyBank Money Market 0.15% Blended Auburn rate 0.18% 100.0% City of Auburn Investment Portfolio Summary March 31, 2013 Summary 19 INNOVATION EQUIPMENT & TECHNOLOGY RENTAL OPERATING REVENUES Charges For Service 2,411,924.26 1,595,858.70 - 1,999,992.87 3,170,865.26 3,790.00 242,448.77 99,245.28 - - - - Interfund Charges For Service - - - - - - - - - 872,448.00 1,194,420.00 732,721.25 Sewer Metro Service Revenue - - 3,418,948.24 - - - - - - - - - Rents, Leases, Concessions, & Other - - - - - 148,888.19 - 54,155.08 - 34,618.76 14,715.00 - TOTAL OPERATING REVENUES 2,411,924.26 1,595,858.70 3,418,948.24 1,999,992.87 3,170,865.26 152,678.19 242,448.77 153,400.36 - 907,066.76 1,209,135.00 732,721.25 OPERATING EXPENSES Salaries & Wages 558,034.64 376,828.33 - 476,626.81 97,149.60 4,973.79 94,191.92 138,627.39 - 160,146.12 346,262.10 115,197.55 Benefits 249,301.76 162,756.90 - 208,101.75 42,737.19 1,678.83 46,040.30 68,667.80 - 71,429.16 141,129.12 51,348.59 Supplies 39,902.49 6,341.28 - 7,850.77 5,412.59 285.70 31,751.93 55,184.06 - 23,686.95 71,906.56 177,880.65 Other Service Charges 676,335.02 640,453.34 - 243,449.86 243,644.00 144,375.31 11,005.15 26,893.43 769,075.87 223,183.52 605,705.54 85,108.57 Intergovernmental Services - 197.98 - 9,580.65 - - - - - - - - Waste Management Payments - - - - 1,675,050.56 - - - - - - - Sewer Metro Services - - 3,598,755.45 - - - - - - - - - Interfund Operating Rentals & Supplies 277,182.81 242,544.26 - 320,968.07 45,225.00 - 14,049.00 41,124.00 - 29,802.00 75,426.00 61,897.37 Other Expenses - - - - - - - - - - - - Depreciation & Amortization 603,510.13 471,558.41 - 403,051.01 4,704.82 100,939.54 14,420.84 77,040.34 - - 116,762.95 194,019.05 TOTAL OPERATING EXPENSES 2,404,266.85 1,900,680.50 3,598,755.45 1,669,628.92 2,113,923.76 252,253.17 211,459.14 407,537.02 769,075.87 508,247.75 1,357,192.27 685,451.78 OPERATING INCOME (LOSS)7,657.41 (304,821.80) (179,807.21) 330,363.95 1,056,941.50 (99,574.98) 30,989.63 (254,136.66) (769,075.87) 398,819.01 (148,057.27) 47,269.47 NON-OPERATING REVENUES & EXPENSES Interest Revenue 5,590.01 5,363.39 1.86 4,796.05 298.40 412.53 94.18 146.97 492.67 740.89 1,216.29 2,308.50 Contributions - - - - - 8,542.00 - - - 35,860.00 - - Other Non-Operating Revenue 437.86 109,978.35 - 1,679.00 360.00 525.00 - - - - - 27,983.04 Gain (Loss) On Sale Of Fixed Assets - - - - - - - - - - - 4,000.00 Debt Service Interest - - - - - - - - - - - - Other Non-Operating Expense - - - - - - - - - - - - TOTAL NON-OPERATING REVENUES & EXPENSES 6,027.87 115,341.74 1.86 6,475.05 658.40 9,479.53 94.18 146.97 492.67 36,600.89 1,216.29 34,291.54 PLUS ITEMS NOT EFFECTING WORKING CAPITAL Depreciation 574,075.13 471,558.41 - 381,736.01 4,704.82 100,939.54 14,420.84 77,040.34 - - 116,762.95 194,019.05 NET WORKING CAPITAL FROM OPERATIONS 587,760.41 282,078.35 (179,805.35) 718,575.01 1,062,304.72 10,844.09 45,504.65 (176,949.35) (768,583.20) 435,419.90 (30,078.03) 275,580.06 Increase In Contributions - System Development 1 113,928.00 2,131,296.75 - 116,699.66 - - - - - - - - Increase In Contributions - Area Assessments - 2,253.61 - - - - - - - - - - Increase In Contributions - Other Governments - - - 705,853.09 - - - - - - - - Increase In Contributions - Other Funds - - - - - - - - - - - - Increase In Contributions - FAA - - - - - - - - - - - - Proceeds of Debt Activity 7,186,400.94 - - 5,203,945.51 - - - - - - - - Operating Transfers In - - - - - - - 4,962.26 - - - - Increase In Restricted Net Assets 3,211.04 17,590.82 - - - 5,724.58 - - - - - - Decrease In Long-Term Receivables - - - - - - - - - - - - Increase In Deferred Credits - - - - - 2,176.52 - - - - - - TOTAL RESOURCES OTHER THAN OPERATIONS 7,303,539.98 2,151,141.18 - 6,026,498.26 - 7,901.10 - 4,962.26 - - - - Net Change In Restricted Net Assets 474,065.67 172.89 - 343,279.53 - 29,713.79 - (829.39) - - - - Increase In Fixed Assets - Salaries 75,262.24 10,935.54 - 32,947.01 - - - - - - - - Increase In Fixed Assets - Benefits 30,649.92 4,519.30 - 13,806.53 - - - - - - - - Increase In Fixed Assets - Site Improvements 9,198.27 - - - - - - - - - - 241.85 Increase In Fixed Assets - Equipment - - - - - - - - - - 12,884.50 13,115.91 Increase In Fixed Assets - Construction 907,668.26 69,135.46 - 431,122.10 - - - - - - - - Operating Transfers Out 50,000.00 50,000.00 - 50,000.00 - - - - - 21,745.61 - 7,000.00 Debt Service Principal - - - - - - - - - - - - TOTAL USES OTHER THAN OPERATIONS 1,546,844.36 134,763.19 - 871,155.17 - 29,713.79 - (829.39) - 21,745.61 12,884.50 20,357.76 NET CHANGE IN WORKING CAPITAL 6,344,456.03 2,298,456.34 (179,805.35) 5,873,918.10 1,062,304.72 (10,968.60) 45,504.65 (171,157.70) (768,583.20) 413,674.29 (42,962.53) 255,222.30 BEGINNING WORKING CAPITAL - January 1, 2013 10,196,281.10 12,072,579.09 - 10,218,848.21 1,018,487.34 818,912.00 182,098.05 90,691.62 2,028,681.08 1,473,040.96 2,885,527.19 5,559,564.94 ENDING WORKING CAPITAL - March 31, 2013 16,540,737.13 14,371,035.43 (179,805.35) 16,092,766.31 2,080,792.06 807,943.40 227,602.70 (80,466.08) 1,260,097.88 1,886,715.25 2,842,564.66 5,814,787.24 NET CHANGE IN WORKING CAPITAL 6,344,456.03 2,298,456.34 (179,805.35) 5,873,918.10 1,062,304.72 (10,968.60) 45,504.65 (171,157.70) (768,583.20) 413,674.29 (42,962.53) 255,222.30 ENTERPRISE FUNDS INTERNAL SERVICE FUNDSWORKING CAPITAL The following table presents the Working Capital Statement for each of the City's Enterprise and Internal Service funds. Working Capital is generally defined as the difference between current assets and current liabilities. CEMETERY GOLF INSURANCE FACILITIESWATERSEWERSEWER METRO STORM SOLID WASTE AIRPORT 20 INNOVATION EQUIPMENT & TECHNOLOGY RENTAL OPERATING REVENUES Charges For Service 2,411,924.26 1,595,858.70 - 1,999,992.87 3,170,865.26 3,790.00 242,448.77 99,245.28 - - - - Interfund Charges For Service - - - - - - - - - 872,448.00 1,194,420.00 732,721.25 Sewer Metro Service Revenue - - 3,418,948.24 - - - - - - - - - Rents, Leases, Concessions, & Other - - - - - 148,888.19 - 54,155.08 - 34,618.76 14,715.00 - TOTAL OPERATING REVENUES 2,411,924.26 1,595,858.70 3,418,948.24 1,999,992.87 3,170,865.26 152,678.19 242,448.77 153,400.36 - 907,066.76 1,209,135.00 732,721.25 OPERATING EXPENSES Administration 658,513.99 510,324.35 - 639,494.33 174,748.36 150,996.79 62,898.54 57,884.75 769,075.87 - - 195,281.84 Operations & Maintenance 1,142,242.73 918,797.74 - 627,083.58 259,420.02 316.84 134,139.76 272,612.00 - 508,247.75 1,240,429.32 296,150.89 Waste Management Payments - - - - 1,675,050.56 - - - - - - - Sewer Metro Services - - 3,598,755.45 - - - - - - - - - Depreciation & Amortization 603,510.13 471,558.41 - 403,051.01 4,704.82 100,939.54 14,420.84 77,040.34 - - 116,762.95 194,019.05 TOTAL OPERATING EXPENSES 2,404,266.85 1,900,680.50 3,598,755.45 1,669,628.92 2,113,923.76 252,253.17 211,459.14 407,537.09 769,075.87 508,247.75 1,357,192.27 685,451.78 OPERATING INCOME (LOSS)7,657.41 (304,821.80) (179,807.21) 330,363.95 1,056,941.50 (99,574.98) 30,989.63 (254,136.73) (769,075.87) 398,819.01 (148,057.27) 47,269.47 NON-OPERATING REVENUES & EXPENSES Interest Revenue 5,590.01 5,363.39 1.86 4,796.05 298.40 412.53 94.18 146.97 492.67 740.89 1,216.29 2,308.50 Other Non-Operating Revenue 437.86 109,978.35 - 1,679.00 360.00 9,067.00 - - - 35,860.00 - 27,983.04 Gain (Loss) On Sale Of Fixed Assets - - - - - - - - - - - 4,000.00 Other Non-Operating Expense - - - - - - - - - - - - TOTAL NON-OPERATING REVENUES & EXPENSES 6,027.87 115,341.74 1.86 6,475.05 658.40 9,479.53 94.18 146.97 492.67 36,600.89 1,216.29 34,291.54 13,685.28 (189,480.06) (179,805.35) 336,839.00 1,057,599.90 (90,095.45) 31,083.81 (253,989.76) (768,583.20) 435,419.90 (146,840.98) 81,561.01 Contributions 1 113,928.00 2,133,550.36 - 822,552.75 - - - - - - - - Transfers In - - - - - - - 4,962.26 - - - - Transfers Out (50,000.00) (50,000.00) - (50,000.00) - - - - - (21,745.61) - (7,000.00) TOTAL CONTRIBUTIONS & TRANSFERS 63,928.00 2,083,550.36 - 772,552.75 - - - 4,962.26 - (21,745.61) - (7,000.00) CHANGE IN FUND BALANCE 77,613.28 1,894,070.30 (179,805.35) 1,109,391.75 1,057,599.90 (90,095.45) 31,083.81 (249,027.50) (768,583.20) 413,674.29 (146,840.98) 74,561.01 BEGINNING FUND BALANCE - January 1, 2013 67,719,034.00 74,779,493.00 - 49,964,488.00 1,128,442.00 9,439,263.00 872,103.00 8,578,904.00 2,028,681.00 1,415,971.00 4,069,294.00 10,502,921.00 ENDING FUND BALANCE - March 31, 2013 67,796,647.28 76,673,563.30 (179,805.35) 51,073,879.75 2,186,041.90 9,349,167.55 903,186.81 8,329,876.50 1,260,097.80 1,829,645.29 3,922,453.02 10,577,482.01 1 Sewer contributions reflect System Development Charges resulting from the Goedecke land swap agreement with the WA Department of Transportation. FUND BALANCE ENTERPRISE FUNDS INTERNAL SERVICE FUNDS The following table provides an analysis of each of the City's Enterprise and Internal Service funds - showing 2013 revenues and expenditures by fund. INCOME (LOSS) BEFORE CONTRIBUTIONS & TRANSFERS CEMETERY GOLF INSURANCE FACILITIESWATERSEWERSEWER METRO STORM SOLID WASTE AIRPORT 21