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Home My WebLink AboutQ3 2014 Financial Report.pdf AGENDA BILL APPROVAL FORM Agenda Subject: 3rd Quarter 2014 Financial Report Date: November 5, 2014 Department: Finance Attachments: Quarterly Financial Report Budget Impact: $0 Administrative Recommendation: For discussion only. Background Summary: The purpose of the quarterly financial report 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 3rd Quarter status report is based on financial data available as of October 17, 2014 for the period ending September 30, 2014. Sales tax information represents business activity that occurred through July 2014. 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 September 2014, General Fund revenues totaled $41.3 million and were sufficient to support total General Fund expenditures of $40.7 million. General Fund revenues exceed budget by $2.3 million, or 5.9% primarily due to increases in retail sales tax collections, building permit revenues, and development services fees. General Fund expenditures through September totaled $40.7 million and are $3.4 million, or 7.7% under budget. The year to date underspend is a result of many factors including staff vacancies, continued vigilance in monitoring general spending, and underspend of contingency funds. Through September 2014, payments to SCORE have decreased by $1.3 million compared to the same period in 2013. The majority of this reduction in expenditures is due to reduced monthly payments for incarceration services (current year monthly payments are based upon prior year City inmate counts). In addition, the annual payment to King County District Court for municipal court services was $550,000 lower than budgeted for the year. Year to date, 4,348 pet licenses have been sold resulting in $114,330 in revenue. For the same period in 2013, 3,876 licenses were sold resulting in $116,920 in revenue. Enterprise Funds: The City’s seven enterprise funds account for operations with revenues primarily provided from user fees, charges or contracts for services. At the end of the third quarter, the Water fund’s net operating income increased to $1,289,500 and compares to income of $517,000 the previous year. The Sewer fund ended the quarter with $98,900 net operating income compared to an operating loss of $497,800 the previous year; the Sewer-Metro Utility ended the quarter with operating income of $94,900 compared to operating income of $61,900 the previous year; and the Stormwater Utility ended the quarter with operating income of $1,098,900 and compares to operating income of $813,500 the previous year. 1 Agenda Subject: 3rd Quarter 2014 Financial Report Date: 11/5/2014 The Cemetery ended the third quarter with net operating income of $3,600 compared to operating income of $60,500 the previous year. The difference is due primarily to water costs, which are being charged to the Cemetery Fund in 2014 but were not in 2013 or before. Internal Service Funds: Internal Service Funds provide services to other City departments and include functions such as Insurance, Worker’s Compensation, Facilities, Innovation and Technology, and Equipment Rental. All funds have sufficient revenues to cover year to date expenditures. Investment Portfolio: The City’s total cash and investments at the end Q3-2014 was $117.7 million, and compares to $119.4 million at the end of Q2-2014. 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: Wales Staff: Coleman Meeting Date: November 17, 2014 Item Number: 2 Quarterly Financial Report Through Q3 2014 (1) Through December 31, 2013, Golf Course revenues and expenditures were reported under Fund 437. Effective January 1, 2014, Golf Course revenues and expenditures are now reported in the General Fund (above). Therefore, when comparing 2014 General Fund actuals to prior year, it is important to recognize this change. General Fund 2013 Summary of Sources and Uses Annual BudgetYTD BudgetYTD ActualYTD ActualAmount Operating Revenues Property Tax 15,699,4178,590,6008,671,4767,960,868 80,876 0.9 % Sales Tax 13,048,5529,562,40010,232,9319,233,567670,531 7.0 % Sales Tax - Annexation Credit 1,404,5901,020,3001,353,3611,236,641333,06132.6 % Criminal Justice Sales Tax 1,231,185 905,5001,220,3591,117,505314,85934.8 % Brokered Natural Gas Tax 303,008 248,800225,727 221,202(23,073)(9.3)% City Utilities Tax 3,203,6732,444,4002,583,4032,500,608139,003 5.7 % Admissions Tax 365,427 277,000242,304 241,141(34,696)(12.5)% Electric Tax 3,373,9052,608,6002,676,0622,529,525 67,462 2.6 % Natural Gas Tax 1,213,9191,076,4001,016,345 914,644(60,055)(5.6)% Cable TV Franchise Fee 816,000608,200662,669 637,051 54,469 9.0 % Cable TV Franchise Fee - Capital 62,310 46,900 47,420 47,254 520 1.1 % Telephone Tax 2,042,7371,495,5001,369,1141,326,474(126,386)(8.5)% Garbage Tax (external)96,261 72,400 79,933 74,608 7,53310.4 % Leasehold Excise Tax 50,754 32,200 27,111 19,685 (5,089)(15.8)% Gambling Excise Tax 250,237 192,200 211,463 201,330 19,263 10.0 % Taxes sub-total43,161,97529,181,40030,619,67928,262,1031,438,2794.9 % Business License Fees203,015106,700107,374116,1566740.6 % Building Permits1,169,160843,2001,164,8561,684,253321,65638.1 % Other Licenses & Permits528,072384,600501,420532,254116,82030.4 % Intergovernmental (Grants, etc.)4,982,3643,669,9453,690,1173,565,55520,1710.5 % Charges for Services: General Government Services94,78374,90080,97585,3846,0758.1 % Public Safety580,449435,600382,50916,521(53,091)(12.2)% Development Services Fees738,881599,600910,625868,072311,02551.9 % Culture and Recreation - (1)2,047,5491,769,7001,871,665725,425101,9655.8 % Fines and Forfeits1,562,575 1,194,100 1,040,512 1,073,569 (153,588)(12.9)% Fees/Charges/Fines sub-total11,906,8489,078,3459,750,0538,667,190671,7087.4 % Interests and Other Earnings42,23031,10029,47035,163(1,630)(5.2)% Rents, Leases and Concessions - (1)543,150475,800587,800253,885112,00023.5 % Contributions and Donations30,00021,40035,53137,64814,13166.0 % Other Miscellaneous - (1)113,20087,700129,92947,39842,22948.2 % Transfers In123,000123,000121,097193,548(1,903)(1.5)% Insurance Recoveries - Capital & Operating25,000 18,900 65,375 126,850 46,475 245.9 % Other Revenues sub-total876,580757,900969,200694,492211,30027.9 % Total Operating Revenues55,945,40339,017,64541,338,93237,623,7852,321,2875.9 % Operating Expenditures Council & Mayor718,926531,476557,961764,833(26,485)(5.0)% Administration 875,639656,729511,6020145,12722.1 % Community & Human Services1,379,3351,068,000689,430687,547378,57035.4 % Municipal Court & Probation1,870,9661,806,0741,198,451505,054607,62333.6 % Human Resources1,557,1631,128,200908,5391,017,520219,66119.5 % Finance1,369,8951,071,900899,315907,409172,58516.1 % City Attorney1,880,9451,298,8091,232,9881,385,23865,8225.1 % Community Development4,069,1072,969,8062,814,1962,796,866155,6105.2 % Jail - SCORE5,786,1003,649,6253,439,2934,704,763210,3325.8 % Police21,893,03616,236,00015,115,06814,215,4501,120,9326.9 % Public Works2,656,7771,966,5001,945,6762,026,43520,8241.1 % Parks, Arts & Recreation - (1)9,539,2537,167,0117,332,5506,063,767(165,539)(2.3)% Streets3,306,7182,259,1002,258,2891,919,5458110.0 % Non-Departmental3,331,2072,335,2051,834,1821,506,257501,02421.5 % Total Operating Expenditures60,235,06644,144,43540,737,53938,500,6843,406,8967.7 % 20142014 YTD Budget vs. Actual Favorable (Unfavorable) Percentage 3 Quarterly Financial Report Through Q3 2014 Overview This financial overview reflects the City’s overall financial position for the fiscal period ending September 30, 2014 and represents financial data available as of October 17, 2014. The budgeted revenues and operating expenditures are primarily based on the collection/disbursement average for the same period of the two years prior. Through the first three quarters of 2014, General Fund revenues totaled $41.3 million and compares to year to date budget of $39.0 million and collections of $37.6 million for the same period last year. Revenues year to date are sufficient to cover General Fund expenditures. Some highlights through Q3-2014 include: - Sales Tax revenue totals $10.2 million and exceeds budget by 7.0% or $671,000. - Criminal Justice Sales Taxes and Sales Taxes from Annexation exceed budget expectations by $648,000 through the third quarter of 2014. - Fees/Charges/Fines total $9.8 million and exceed budget by $672,000 primarily due to stronger than budgeted revenues from development activity. - Rents, Leases, and Concessions total $589,000 and exceed budget by $112,000 primarily due to increased bookings at City facilities, most notably at the Senior Center and Game Farm Park. General Fund expenditures through the first three quarters of 2014 total $40.7 million and compare to a budget of $44.1 million. Due to an accounting change effective January 1, 2014 all revenues and expenditures related to the Auburn Golf Course are now reported in the General Fund. Therefore, it is important to recognize this shift when comparing 2014 performance to prior year performance. After adjusting for the Golf Course expenditures through September of 2013 in the amount of $1.1 million, the year to date General Fund expenditures are running 2.8% higher than the same period the year prior. $0.0 $5.0 $10.0 $15.0 $20.0 $25.0 $30.0 $35.0 $40.0 $45.0 $50.0 Revenues Expenditures Mi l l i o n s General Fund Year to Date Revenues vs. Expenditures 2014 Budget 2014 Actual 4 Quarterly Financial Report Through Q3 2014 Revenues The combined total of property tax, sales/use tax, utility tax, gambling, and admissions tax provides approximately 80% of all resources supporting general governmental activities. The following section provides additional information on these sources. Property Tax collections to date total $8.7 million and compare to a budget of $8.6 million, and are in line with 2014 expectations. The majority of property tax revenues are collected during the months of April and October, coinciding with the due dates for the County property tax billings. $0.0 $2.0 $4.0 $6.0 $8.0 $10.0 $12.0 $14.0 $16.0 $18.0 JanFebMarAprMayJunJulAugSepOctNovDec Mi l l i o n s Property Taxes 2014 budget 2014 actual to date 2013 actual 5 Quarterly Financial Report Through Q3 2014 Sales tax distributions Citywide total $11.5 million of which $10.2 million was distributed to the General Fund and $1.3 million was distributed to the Local Street Fund (SOS) program.* Year to date Sales Tax revenue collections in the General Fund exceed budget expectations by $671,000, or 7.0%. * Per 2013-2014 budget, Local Street Fund (Fund 103) street repairs are funded from sales taxes on construction. Total transferred in through Q3-2014 was $1,299,177. The graphic above presents sales taxes under the current policy. The following table breaks out the City’s base sales tax, excluding Criminal Justice, Annexation Credit and Streamlined Sales Tax Mitigation, by major business sector. $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 (Net of Revenue from Construction) 2014 budget 2014 actual to date 2013 actual 6 Quarterly Financial Report Through Q3 2014 As the table shows, sales tax revenues collected through the first three quarters of 2014 exceed prior year collections by $1,037,000, or 9.9%. The business sectors showing the largest increase in revenues compared to 2013 are the manufacturing and retail trade categories. Total sales tax revenue on construction, which is transferred to the Local Street Fund (Fund 103) for local street repair and maintenance, totals $1,299,177 year to date and exceeds budget by $46,000, reflecting increased commercial and residential construction activity throughout the City. 20132014 Component GroupActualActualAmount Construction 1,253,4701,299,17745,7073.6 % Manufacturing 455,540866,808411,26890.3 % Transportation & Warehousing28,71630,8512,1367.4 % Wholesale Trade 956,449889,379(67,070)(7.0)% Automotive 2,346,4602,449,526103,0664.4 % Retail Trade 3,136,4073,438,556302,1499.6 % Services 2,271,2792,464,157192,8798.5 % Miscellaneous 44,14491,12146,978106.4 % YTD Total 10,492,46411,529,5751,037,1119.9 % Change from 2013 September-2014 Comparison of Sales Tax Collections by SIC Group Percentage $0.0 $0.2 $0.4 $0.6 $0.8 $1.0 $1.2 $1.4 $1.6 $1.8 $2.0 JanFebMarAprMayJunJulAugSepOctNovDec Mi l l i o n s Sales Tax on Construction Transfer 2014 budget 2014 actual to date 2013 actual 7 Quarterly Financial Report Through Q3 2014 Utility Taxes consist of interfund taxes on City utilities (Water, Sewer, Storm and Solid Waste) and taxes on external utilities (Electric, Natural Gas, Telephone and Solid Waste). Utility taxes collected through the first three quarters of 2014 total $7.7 million and compare to $7.3 million collected in the same period last year. As shown in the table below, utility tax revenues year to date are in line with budget expectations of $7.7 million. $0.0 $2.0 $4.0 $6.0 $8.0 $10.0 $12.0 JanFebMarAprMayJunJulAugSepOctNovDec Mi l l i o n s Utility Tax 2014 budget 2014 actual to date 2013 actual 201320142014 MonthActualBudgetActualAmountAmount City Interfund Utility Taxes2,500,6082,444,4002,583,40382,795 3.3 %139,003 5.7 % Electric 2,529,5252,608,6002,676,062146,537 5.8 %67,462 2.6 % Natural Gas 914,6441,076,4001,016,345101,701 11.1 %(60,055)(5.6)% Telephone 1,326,4741,495,5001,369,11442,640 3.2 %(126,386)(8.5)% Solid Waste (external)74,60872,40079,9335,326 7.1 %7,533 10.4 % YTD Total 7,345,8597,697,3007,724,857378,998 5.2 %27,557 0.4 % Annual Total 9,540,1399,930,495 September-2014 Utility Tax by Type 2014 vs. 2013 Actual2014 vs. Budget Percentage Percentage 8 Quarterly Financial Report Through Q3 2014 Cable TV Franchise Fees, which are collected quarterly, total $663,000 and exceed budget by $54,000 or 9.0%. 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 collected through September total $1.2 million and compare to budget of $843,000. Building permits issued through September total 662 compared to 751 during the same period last year. Major projects contributing to building permit revenues this quarter include building permits for several housing developments including Lakeland Hills Estates, Edgeview, Auburn 40 PUD, and Kendall Ridge. $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 2014 budget 2014 actual to date 2013 actual 9 Quarterly Financial Report Through Q3 2014 Note: The spike seen in February 2013 (above) includes revenues for the Auburn High School Reconstruction and Modernization project. Business License revenues collected through September total $107,000, and are in line with budget expectations. The graphic on the following page reflects the timing of payments by business owners, where the majority of business license payments are collected during the first two months of the year and the last month of the year. $0.0 $0.2 $0.4 $0.6 $0.8 $1.0 $1.2 $1.4 $1.6 $1.8 $2.0 $2.2 JanFebMarAprMayJunJulAugSepOctNovDec Mi l l i o n s Building Permits 2014 budget 2014 actual to date 2013 actual 10 Quarterly Financial Report Through Q3 2014 Intergovernmental revenues include Grants (Direct & Indirect Federal, State and Local), state shared revenues and compact revenue from the Muckleshoot Indian Tribe (MIT). Collections to date total $3.7 million and are in line with budget expectations. State shared revenue includes $1,478,789 in Streamlined Sales Tax Mitigation payments. $0 $20 $40 $60 $80 $100 $120 $140 $160 $180 $200 $220 $240 JanFebMarAprMayJunJulAugSepOctNovDec Th o u s a n d s Business Licenses 2014 budget 2014 actual to date 2013 actual 201320142014 Revenue ActualBudgetActualAmount Amount Federal Grants 46,901191,30090,08443,183 92.1 %(101,216)(52.9)% State Grants 105,943228,50067,921(38,022)(35.9)%(160,579)(70.3)% Interlocal Grants 58,48615,7009,652(48,834)0.0 %(6,048)(38.5)% State Shared Revenue2,887,7492,781,8503,022,691134,943 4.7 %240,841 8.7% Muckleshoot Casino Emerg.437,462445,800444,6677,205 1.6 %(1,134)(0.3)% Intergovernmental Service29,0156,79555,10226,087 89.9 %48,307 710.9% YTD Total 3,565,5553,669,9453,690,117124,562 3.5 %20,171 0.5% September-2014 Intergovernmental 2014 vs. 2013 Actual2014 vs. Budget % Change % Change 11 Quarterly Financial Report Through Q3 2014 Charges for Services consist of general governmental services, public safety, development service fees and cultural & recreation fees. Collections to date total $3.2 million and compare to a budget of $2.9 million. General governmental revenues through Q3-2014 exceed year to date budget by $6,000 – primarily due to timing of payments from local jurisdictions that contract services through the City of Auburn, as well as increased revenues for passport services. Public safety revenues collected year to date total $383,000 and compare to a budget of $436,000. Public Safety revenues primarily consist of revenues generated for Police Officer extra duty overtime, where officers are contracted for services and reimbursement is made by the hiring contractor. Effective this year, the expenditures for Police Officer extra duty overtime are no longer netted against the revenues for this service, which is why the collections this year are significantly higher than collections reflected in the prior year. Development services fee collections, which primarily consist of plan check fees, exceed budget by $311,000 year to date. Total plan check fees collected in the third quarter of 2014 total $196,000 and compare to $141,000 collected during the third quarter of last year. This quarter’s plan check revenues include fees related to several commercial projects, including a storage facility, a wedding venue and a project at the Outlet Collection. Plan check revenues also include plans for several housing developments – most notably Edgeview and Sonata Hill. Culture and recreation revenues exceed budget by $102,000 or 5.8%, reflecting increased activity from recreational classes and City special events. A significant factor in the year-over-year increase seen in culture and recreation revenues is a change in accounting, whereby Golf Course revenues and expenditures are now reported within the General Fund. Revenues included in this category include golf lessons and green fees. 201320142014 RevenueActualBudgetActualAmountAmount General Government85,38474,90080,975(4,409)(5.2)%6,075 8.1 % Public Safety 16,521435,600382,509365,988 2,215.2 %(53,091)(12.2)% Development Services868,072599,600910,62542,553 4.9 %311,025 51.9 % Culture & Recreation725,4251,769,7001,871,6651,146,240 158.0 %101,965 5.8 % YTD Total 1,695,4032,879,8003,245,7751,550,37291.4 %365,975 12.7 % September-2014 Charges for Services by Type 2014 vs. 2013 Actual2014 vs. Budget Percentage Percentage 12 Quarterly Financial Report Through Q3 2014 Note: The 2014 budget is considerably higher than 2013 actuals due to the accounting change effective January 1, 2014 where the Golf Course is now included in the General Fund. $0.0 $0.2 $0.4 $0.6 $0.8 $1.0 $1.2 $1.4 JanFebMarAprMayJunJulAugSepOctNovDec Mi l l i o n s Development Service Fees 2014 budget 2014 actual to date 2013 actual $0.0 $0.2 $0.4 $0.6 $0.8 $1.0 $1.2 $1.4 $1.6 $1.8 $2.0 $2.2 JanFebMarAprMayJunJulAugSepOctNovDec Mi l l i o n s Culture & Recreation 2014 budget 2014 actual to date 2013 actual 13 Quarterly Financial Report Through Q3 2014 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 fines. Total revenue collected to date is $1.0 million and compares to a budget of $1.2 million. 201320142014 MonthActualBudgetActualAmountAmount Civil Penalties14,57211,80013,115(1,457)(10.0)%1,315 11.1 % Civil Infraction Penalties343,146515,600368,22025,075 7.3 %(147,380)(28.6)% Redflex Photo Enforcement436,428360,300377,730(58,698)(13.4)%17,430 4.8 % Parking Infractions97,053137,300102,9625,908 6.1 %(34,338)(25.0)% Criminal Traffic Misdemeanor42,13160,60039,908(2,223)(5.3)%(20,692)(34.1)% Criminal Non-Traffic Fines45,63769,60033,951(11,685)(25.6)%(35,649)(51.2)% Criminal Costs20,9269,70038,36617,441 83.3 %28,666 295.5 % Non-Court Fines & Penalties73,67829,20066,260(7,418)(10.1)%37,060 126.9 % YE Total1,073,5691,194,1001,040,512(33,057)(3.1)%(153,588)(12.9)% September-2014 Fines & Forfeits by Type 2014 vs. 2013 Actual2014 vs. Budget Percentage Percentage $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 2014 budget 2014 actual to date 2013 actual 14 Quarterly Financial Report Through Q3 2014 Effective June 1, 2014, the City no longer contracts with Redflex for photo enforcement services. Due to the inactivity of the speed zone and red-light cameras, this monthly revenue stream is expected to be extinguished by the end of the year. The amount collected in September was $8,000 and compares to monthly average collections of $50,000 when the cameras were fully operational. Miscellaneous revenues primarily consist of income from facility rentals; other sources within this category include investment earnings, contributions & donations and other miscellaneous income. Revenue in this category totals $783,000 and compares to a budget of $616,000. Through the first three quarters of 2014, rents and leases revenues are $112,000 higher than budgeted primarily due to stronger than anticipated revenues for facility rentals at Game Farm Park and the Senior Center. In comparing year-over-year actuals, it is important to note that effective January 1, 2014 golf cart rental revenues are now included in the General Fund and are collected in the rents and leases revenue category below. $0 $100 $200 $300 $400 $500 $600 $700 JanFebMarAprMayJunJulAugSepOctNovDec Th o u s a n d s Redflex Photo Enforcement 2014 budget 2014 actual to date 2013 actual 201320142014 Month ActualBudgetActualAmount Amount Interest & Investments 35,16331,10029,470(5,693)(16.2)%(1,630)(5.2)% Rents & Leases 253,885475,800587,800333,915131.5 %112,00023.5 % Contributions & Donations37,64821,40035,531(2,117)(5.6)%14,13166.0 % Other Miscellaneous Revenue47,39887,700129,92982,531174.1 %42,22948.2 % YTD Total 374,093616,000782,729408,636109.2 %166,72927.1 % Miscellaneous Revenues by Type September-2014 2014 vs. 20132014 vs. Budget Percentage Percentage 15 Quarterly Financial Report Through Q3 2014 Real Estate Excise Tax (REET) revenue is receipted into the Capital Improvement Projects Fund and is used for governmental capital projects. Total revenue collected through September is $1.9 million. This exceeds budget and prior year actuals by $1.0 million and $390,000 respectively, reflecting improvement in the local and regional real estate markets. 201320142014 MonthActualBudgetActualAmountAmount Jan 113,61561,300119,7656,1505.4%58,46595.4% Feb 107,48592,200208,206100,72193.7%116,006125.8% Mar 143,19898,000118,578(24,620)(17.2)%20,57821.0% Apr 124,44569,100189,77165,32552.5%120,671174.6% May 162,75089,400243,47280,72149.6%154,072172.3% Jun 177,38095,800236,06758,68833.1%140,267146.4% Jul 267,976147,100305,21437,23813.9%158,114107.5% Aug 200,627112,200263,57362,94731.4%151,373134.9% Sep 183,507103,600182,829(678)(0.4)%79,22976.5% Oct 261,388260,600 (261,388)(100.0)%(260,600)(100.0)% Nov 287,776138,600 (287,776)(100.0)%(138,600)(100.0)% Dec 202,388132,100 (202,388)(100.0)%(132,100)(100.0)% YTD Total1,480,983868,7001,867,475386,49326.1%998,775115.0% 2014 vs. 2013 2014 vs. Budget Percentage Real Estate Excise Tax Revenues September-2014 Percentage $0.0 $0.2 $0.4 $0.6 $0.8 $1.0 $1.2 $1.4 $1.6 $1.8 $2.0 $2.2 $2.4 JanFebMarAprMayJunJulAugSepOctNovDec Mi l l i o n s Real Estate Excise Tax 2014 budget 2014 actual to date 2013 actual 16 Quarterly Financial Report Through Q3 2014 Pet Licensing Year-to-date, 4,348 pet licenses have been sold resulting in $114,300 in revenue. For the same period in 2013, 3,876 licenses were sold resulting in $116,900 in revenue. 2014 Budget Goal: $240,000 or more Year-to-Date Revenue 2014 (through September) = $114,330 Year-to-Date Licenses 2014 (through September) = 4,348 Year-to-Date Licenses 2013 (through September) = 3,876 0 100 200 300 400 500 600 700 800 900 Ja n Fe b Ma r Ap r Ma y Ju n Ju l Au g Se p Oc t No v De c Nu m b e r o f L i c e n s e s I s s u e d Month Pet Licenses Issued By Month 2014 vs 2013 2014 Licenses Issued 2013 Licenses Issued $0 $2,000 $4,000 $6,000 $8,000 $10,000 $12,000 $14,000 Ja n Fe b Ma r Ap r Ma y Ju n Ju l Au g Se p Oc t No v De c Li c e n s e R e v e n u e Month Pet Licensing Revenue By Month 2014 2014 License Revenue 17 Quarterly Financial Report Through Q3 2014 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. At the end of the third quarter, the Water Utility’s net operating income increased from $517,000 in 2013 to $1,289,500 in 2014. 0 2,000 4,000 6,000 8,000 10,000 12,000 $0 $50,000 $100,000 $150,000 $200,000 $250,000 Ja n Fe b Ma r Ap r Ma y Ju n Ju l Au g Se p Oc t No v De c Nu m b e r o f L i c e n s e s I s s u e d Li c e n s e R e v e n u e Month Cumulative Pet Licensing Revenue & Licenses Issued 2014 vs 2013 2014 License Revenue (L) 2014 License Revenue (L) (Budget Goal: $240,000) 2014 Licenses Issued (R) 2013 Licenses Issued (R) $0 $200 $400 $600 $800 $1,000 $1,200 $1,400 $1,600 JanFebMarAprMayJunJulAugSepOctNovDec Th o u s a n d s Water Revenues vs Water Sold 2014 vs 2013 2013 Water Sales ($) 2014 Water Sales ($) 2013 Water Sold (ccf) 2014 Water Sold (ccf) 18 Quarterly Financial Report Through Q3 2014 The Sewer Utility ended the quarter with operating income of $98,900 compared to an operating loss of $497,800 for the same period in 2013. The Sewer-Metro Utility ended the period with operating income of $94,900 compared to operating income of $61,900 for the previous year. The Stormwater Utility ended the quarter with $1,098,900 in net operating income which compared to operating income of $813,500 for the same period last year. The Cemetery Fund ended the third quarter with operating income of $3,600 compared to operating income of $60,500 for the same period last year. During the third quarter of 2014, the number of interments at the Cemetery totaled 179 (82 burials, 97 cremations) which compares to 172 (82 burials, 97 cremations) for the same period last year. $0 $20 $40 $60 $80 $100 $120 $140 JanFebMarAprMayJunJulAugSepOctNovDec Th o u s a n d s Cemetery Operating Revenues & Expenditures By Month 2014 vs 2013 2014 Bud. Revenue 2014 Act. Revenue 2013 Act. Revenue 2014 Act. Expenses $0 $100 $200 $300 $400 $500 $600 $700 $800 $900 $1,000 JanFebMarAprMayJunJulAugSepOctNovDec Th o u s a n d s Cumulative Cemetery Revenues & Expenditures 2014 vs 2013 2014 Bud. Revenue 2014 Act. Revenue 2013 Act. Revenue 2014 Act. Expenses 19 Quarterly Financial Report Through Q3 2014 Internal Service Funds Operating expenditures within the Insurance Fund represents the premium cost-pool that will be allocated monthly to other City funds over the course of 2014. As a result, this balance will gradually diminish each month throughout the year. No significant variances are reported in the Worker’s Compensation, Facilities, Innovation & Technology, or Equipment Rental Funds. All funds have sufficient revenues to cover year-to-date expenditures. Contact Information This report is prepared by the Finance Department. Additional financial information can also be viewed at our website: http://www.auburnwa.gov/. For any questions about this report please contact Shelley Coleman at scoleman@auburnwa.gov. 20 Investment Purchase Purchase Maturity Yield to Type Date Price Date Maturity State Investment Pool Various 105,469,219$ Various 0.10% KeyBank Money Market Various 6,843,540 Various 0.00% US Treasury 05/04/1990 57,750 05/15/2016 5.72% FFCB 4/11/2013 3,000,000 4/11/2016 0.43% FHLB 2/19/2014 2,047,200 11/19/2018 1.98% LAKUTL 9/25/2013 235,919 11/1/2017 1.90% Total Cash & Investments 117,653,628$ 0.140% Investment Mix % of Total State Investment Pool 89.6%Current 6-month treasury rate 0.04% KeyBank Money Market 5.8%Current State Pool rate 0.10% US Treasury 0.0%KeyBank Money Market 0.00% FFCB 2.5%Blended Auburn rate 0.14% FHLMC 1.7% LAKUTL 0.2% 100.0% City of Auburn Investment Portfolio Summary September 30, 2014 Summary 21 SALES TAX SUMMARY SEPTEMBER 2014 SALES TAX DISTRIBUTIONS (FOR JULY 2014 RETAIL ACTIVITY) 2013 Annual Total 2013 YTD 2014 YTD YTD 2013 Annual Total 2013 YTD 2014 YTD YTD NAICS CONSTRUCTION (Nov '12-Oct '13)(Nov '12 - Jul'13)(Nov '13 - Jul '14)% Diff NAICS AUTOMOTIVE (Nov '12-Oct '13)(Nov '12 - Jul'13)(Nov '13 - Jul '14)% Diff 236 Construction of Buildings 949,102 593,884 652,751 9.9%441 Motor Vehicle and Parts Dealer 2,899,545 2,166,473 2,263,012 d 4.5% 237 Heavy and Civil Construction 166,874 71,364 104,326 46.2%447 Gasoline Stations 236,015 179,986 186,513 3.6% 238 Specialty Trade Contractors 826,744 588,222 542,100 -7.8%TOTAL AUTOMOTIVE 3,135,559 2,346,460 2,449,526 4.4% TOTAL CONSTRUCTION 1,942,720 1,253,470 1,299,177 3.6%Overall Change from Previous Year 103,066 Overall Change from Previous Year 45,707 2013 Annual Total 2013 YTD 2014 YTD YTD 2013 Annual Total 2013 YTD 2014 YTD YTD NAICS RETAIL TRADE (Nov '12-Oct '13)(Nov '12 - Jul'13)(Nov '13 - Jul '14)% Diff NAICS MANUFACTURING (Nov '12-Oct '13)(Nov '12 - Jul'13)(Nov '13 - Jul '14)% Diff 442 Furniture and Home Furnishings 235,036 174,342 178,076 2.1% 311 Food Manufacturing 1,836 1,308 2,654 102.9%443 Electronics and Appliances 173,552 130,520 194,124 48.7% 312 Beverage and Tobacco Products 7,670 5,635 6,142 9.0%444 Building Material and Garden 446,976 333,749 365,425 9.5% 313 Textile Mills 272 201 197 -1.9%445 Food and Beverage Stores 335,409 245,666 257,712 4.9% 314 Textile Product Mills 3,435 3,017 2,518 -16.6%446 Health and Personal Care Store 173,874 132,599 144,146 8.7% 315 Apparel Manufacturing 280 268 237 -11.4%448 Clothing and Accessories 889,410 646,219 742,048 14.8% 316 Leather and Allied Products 11 7 7 -5.5%451 Sporting Goods, Hobby, Books 125,040 90,229 161,403 78.9% 321 Wood Product Manufacturing 72,780 57,801 57,779 0.0%452 General Merchandise Stores 974,130 738,740 720,944 c -2.4% 322 Paper Manufacturing 3,442 2,658 3,712 39.7%453 Miscellaneous Store Retailers 548,688 403,216 413,147 2.5% 323 Printing and Related Support 26,277 18,207 28,677 57.5%454 Nonstore Retailers 316,455 241,127 261,531 8.5% 324 Petroleum and Coal Products 9,762 7,028 7,488 6.5%TOTAL RETAIL TRADE 4,218,570 3,136,407 3,438,556 9.6% 325 Chemical Manufacturing 8,995 6,442 3,986 -38.1%Overall Change from Previous Year 302,149 326 Plastics and Rubber Products 9,566 6,915 7,583 9.7% 327 Nonmetallic Mineral Products 20,455 14,460 13,993 -3.2% 331 Primary Metal Manufacturing 717 592 1,416 139.1%2013 Annual Total 2013 YTD 2014 YTD YTD 332 Fabricated Metal Product Manuf 13,135 b 6,794 25,992 282.6%NAICS SERVICES (Nov '12-Oct '13)(Nov '12 - Jul'13)(Nov '13 - Jul '14)% Diff 333 Machinery Manufacturing 25,232 15,548 15,644 0.6%51*Information 445,827 325,768 366,007 12.4% 334 Computer and Electronic Produc 13,545 10,298 12,714 23.5%52*Finance and Insurance 91,439 69,833 63,727 -8.7% 335 Electric Equipment, Appliances 1,251 1,089 797 -26.8%53*Real Estate, Rental, Leasing 278,919 207,620 231,133 11.3% 336 Transportation Equipment Man 350,172 256,922 629,795 145.1%541 Professional, Scientific, Tech 183,904 137,518 160,723 16.9% 337 Furniture and Related Products 24,852 18,074 17,480 -3.3%551 Company Management 76 77 26 -66.5% 339 Miscellaneous Manufacturing 30,699 22,275 27,997 25.7%56*Admin. Supp., Remed Svcs 336,269 255,791 277,970 8.7% TOTAL MANUFACTURING 624,385 455,540 866,808 90.3%611 Educational Services 50,183 34,913 32,383 -7.2% Overall Change from Previous Year 411,268 62*Health Care Social Assistance 32,608 28,162 32,412 15.1% 71*Arts and Entertainment 148,530 122,219 132,701 8.6% 72*Accomodation and Food Svcs 979,254 716,964 780,814 8.9%2013 Annual Total 2013 YTD 2014 YTD YTD 81*Other Services 394,645 290,724 313,316 7.8%NAICS TRANSPORTATION AND WAREHOUSING (Nov '12-Oct '13)(Nov '12 - Jul'13)(Nov '13 - Jul '14)% Diff 92*Public Administration 112,629 81,688 72,945 -10.7% 481 Air Transportation 0 0 0 N/A TOTAL SERVICES 3,054,283 2,271,279 2,464,157 8.5% 482 Rail Transportation 9,552 8,604 3,977 -53.8%Overall Change from Previous Year 192,879 484 Truck Transportation -3,489 a -4,937 a 3,291 -166.7% 485 Transit and Ground Passengers 93 93 4 -95.9% 488 Transportation Support 27,757 17,490 19,325 10.5%2013 Annual Total 2013 YTD 2014 YTD YTD 491 Postal Service 863 655 631 -3.8%NAICS MISCELLANEOUS (Nov '12-Oct '13)(Nov '12 - Jul'13)(Nov '13 - Jul '14)% Diff 492 Couriers and Messengers 1,272 1,001 671 -33.0%000 Unknown 0 0 0 N/A 493 Warehousing and Storage 9,648 5,809 2,953 -49.2%111-115 Agriculture, Forestry, Fishing 4,385 3,266 3,441 5.4% TOTAL TRANSPORTATION 45,696 28,716 30,851 7.4%211-221 Mining & Utilities 22,645 16,706 18,631 11.5% Overall Change from Previous Year 2,136 999 Unclassifiable Establishments 36,549 24,172 69,049 185.7% TOTAL SERVICES 63,580 44,144 91,121 106.4% Overall Change from Previous Year 46,978 2013 Annual Total 2013 YTD 2014 YTD YTDNAICSWHOLESALE TRADE (Nov '12-Oct '13)(Nov '12 - Jul'13)(Nov '13 - Jul '14)% Diff 423 Wholesale Trade, Durable Goods 1,111,249 831,213 758,585 -8.7%GRAND TOTAL 14,364,200 10,492,464 11,529,575 424 Wholesale Trade, Nondurable 163,774 121,438 128,756 6.0%Overall Change from Previous Year 1,037,111 9.9% 425 Wholesale Electronic Markets 4,384 3,798 2,038 -46.3% TOTAL WHOLESALE 1,279,407 956,449 889,379 -7.0% Overall Change from Previous Year -67,070 a. WA State Dept of Revenue audit adjustment to sales tax returns for period Jan 2013 (adjustment: -$11,382). b. WA State Dept of Revenue audit adjustment to sales tax returns for period May 2013 (adjustment - $30,493). c. WA State Dept of Revenue audit adjustment to sales tax returns for period March 2014 (adjustment: -$45,145). d. WA State Dept of Revenue audit adjustment to sales tax returns for period April 2014 (adjustment: $10,242). 09/23/14 file:Monthly Sales Tax Report.xls Prepared by Auburn Finance Department 22 INNOVATION EQUIPMENT & TECHNOLOGY RENTAL OPERATING REVENUES Charges For Service 9,561,388 5,683,469 - 6,675,123 10,006,048 12,198 733,254 - 623,764 - - - Interfund Charges For Service - - - - - - - - - 2,547,395 3,558,897 2,166,415 Sewer Metro Service Revenue - - 11,322,650 - - - - - - - - - Rents, Leases, Concessions, & Other - - - - - 473,474 - - - 80,107 97,945 - TOTAL OPERATING REVENUES 9,561,388 5,683,469 11,322,650 6,675,123 10,006,048 485,672 733,254 - 623,764 2,627,502 3,656,842 2,166,415 OPERATING EXPENSES Salaries & Wages 1,811,031 1,169,634 - 1,622,429 311,972 16,052 311,855 - 62,469 390,759 1,097,569 419,074 Benefits 791,803 504,892 - 700,682 146,608 5,329 144,069 - 50,998 190,960 450,848 193,086 Supplies 151,658 62,183 - 74,192 10,140 112 108,438 - - 108,739 189,634 769,242 Other Service Charges 2,879,517 1,689,932 22 1,007,583 842,394 350,991 49,459 360,703 161,109 1,149,480 1,334,196 314,002 Intergovernmental Services - 2,420 - 69,058 208,111 - - - - - - - Waste Management Payments 1 - - - - 7,584,163 - - - - - - - Sewer Metro Services - - 11,227,707 - - - - - - - - - Interfund Operating Rentals & Supplies 827,976 724,194 - 952,073 134,775 - 75,797 - - 88,884 216,297 185,581 Other Expenses - - - - - - - - - - - - Depreciation & Amortization 1,809,876 1,431,349 - 1,150,201 14,114 301,263 40,050 - - - 408,118 565,835 TOTAL OPERATING EXPENSES 8,271,860 5,584,605 11,227,730 5,576,219 9,252,277 673,748 729,668 360,703 274,575 1,928,822 3,696,662 2,446,819 OPERATING INCOME (LOSS)1,289,527 98,865 94,921 1,098,904 753,771 (188,076) 3,586 (360,703) 349,189 698,679 (39,820) (280,405) NON-OPERATING REVENUES & EXPENSES Interest Revenue 11,427 9,630 511 13,357 1,071 686 223 839 134 1,561 2,513 4,167 Contributions - - - 23,992 18,238 - 25 - - 2,354 - 799 Other Non-Operating Revenue 153,999 51,853 - 83,007 240 (1,541) 4,654 - - - 1,646 43,926 Gain (Loss) On Sale Of Fixed Assets - - - 322,871 - - - - - - - - Debt Service Interest (49,516) (17,659) - - - (20,838) (11,134) - - - - - Other Non-Operating Expense - - - - - - - - - - - - TOTAL NON-OPERATING REVENUES & EXPENSES 115,910 43,825 511 443,228 19,550 (21,692) (6,233) 839 134 3,915 4,159 48,892 PLUS ITEMS NOT AFFECTING WORKING CAPITAL Depreciation 1,809,876 1,431,349 - 1,150,201 14,114 301,263 40,050 - - - 408,118 565,835 NET WORKING CAPITAL FROM OPERATIONS 3,215,313 1,574,039 95,432 2,692,332 787,435 91,494 37,404 (359,864) 349,323 702,595 372,457 334,323 Increase In Contributions - System Development 430,899 188,050 - 477,338 - - - - - - - - Increase In Contributions - Area Assessments - 3,282 - - - - - - - - - - Increase In Contributions - Other Governments 42,200 162,203 - 597,204 - 6,976 - - - - - - Increase In Contributions - Other Funds - - - - - - - - - - - - Increase In Contributions - FAA - - - - - 59,425 - - - - - - Proceeds of Debt Activity 67,438 - - - - - - - - - - - Operating Transfers In - - - 18,649 - - - - - - 119,023 - Increase In Restricted Net Assets 10,638 (5,412) - - - (590) - - - - - - Decrease In Long-Term Receivables - 90,000 - - - - - - - - - - Increase In Deferred Credits - - - - - 8,991 - - - - - - TOTAL RESOURCES OTHER THAN OPERATIONS 551,175 438,123 - 1,093,191 - 74,802 - - - - 119,023 - Net Change In Restricted Net Assets 473,930 302,281 - 532,624 - (590) - - - 2,200 - - Increase In Fixed Assets - Salaries 112,677 72,780 - 181,587 - - - - - - - - Increase In Fixed Assets - Benefits 42,508 30,338 - 73,629 - - - - - - - - Increase In Fixed Assets - Site Improvements 16,734 - - - - - - - - - - - Increase In Fixed Assets - Land - - - 261,979 - - - - - - - - Increase In Fixed Assets - Equipment - - - 51,405 - - - - - - 493,581 565,928 Increase In Fixed Assets - Construction 1,623,096 888,136 - 2,050,770 - 275,078 - - - - - - Operating Transfers Out 76,846 75,810 - 141,003 - - - - - 295,379 - 7,000 Debt Service Principal 519,405 288,262 - - - - - - - - - - TOTAL USES OTHER THAN OPERATIONS 2,865,195 1,657,608 - 3,292,997 - 274,488 - - - 297,579 493,581 572,928 NET CHANGE IN WORKING CAPITAL 901,293 354,554 95,432 492,526 787,435 (108,192) 37,404 (359,864) 349,323 405,016 (2,100) (238,606) BEGINNING WORKING CAPITAL - January 1, 2014 14,189,404 12,952,797 1,826,811 15,762,939 1,504,560 801,284 261,934 1,815,731 - 1,976,512 3,406,012 5,920,444 ENDING WORKING CAPITAL - September 30, 2014 15,090,698 13,307,351 1,922,243 16,255,465 2,291,995 693,092 299,338 1,455,867 349,323 2,381,528 3,403,912 5,681,838 NET CHANGE IN WORKING CAPITAL 901,293 354,554 95,432 492,526 787,435 (108,192) 37,404 (359,864) 349,323 405,016 (2,100) (238,606) 1 September's Waste Management payment in the amount of $833,263 has been added to the Solid Waste Fund and is reflected in the Ending Working Capital balance. 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 INSURANCE WORKER'S COMPENSATION FACILITIESWATERSEWERSEWER METRO STORM SOLID WASTE AIRPORT ENTERPRISE FUNDS 23 INNOVATION EQUIPMENT & TECHNOLOGY RENTAL OPERATING REVENUES Charges For Service 9,561,388 5,683,469 - 6,675,123 10,006,048 12,198 733,254 - 623,764 - - - Interfund Charges For Service - - - - - - - - - 2,547,395 3,558,897 2,166,415 Sewer Metro Service Revenue - - 11,322,650 - - - - - - - - - Rents, Leases, Concessions, & Other - - - - - 473,474 - - - 80,107 97,945 - TOTAL OPERATING REVENUES 9,561,388 5,683,469 11,322,650 6,675,123 10,006,048 485,672 733,254 - 623,764 2,627,502 3,656,842 2,166,415 OPERATING EXPENSES Administration 2,225,427 1,615,204 22 2,233,129 560,637 370,648 205,124 360,703 - - - 675,223 Operations & Maintenance 4,236,558 2,538,051 - 2,192,889 1,093,363 1,837 484,494 - 274,575 1,928,822 3,288,544 1,205,761 Waste Management Payments 1 - - - - 7,584,163 - - - - - - - Sewer Metro Services - - 11,227,707 - - - - - - - - - Depreciation & Amortization 1,809,876 1,431,349 - 1,150,201 14,114 301,263 40,050 - - - 408,118 565,835 TOTAL OPERATING EXPENSES 8,271,860 5,584,605 11,227,730 5,576,219 9,252,277 673,748 729,668 360,703 274,575 1,928,822 3,696,662 2,446,819 OPERATING INCOME (LOSS)1,289,527 98,865 94,921 1,098,904 753,771 (188,076) 3,586 (360,703) 349,189 698,679 (39,820) (280,405) NON-OPERATING REVENUES & EXPENSES Interest Revenue 11,427 9,630 511 13,357 1,071 686 223 839 134 1,561 2,513 4,167 Other Non-Operating Revenue 153,999 51,853 - 107,000 18,478 (1,541) 4,679 - - 2,354 1,646 44,725 Gain (Loss) On Sale Of Fixed Assets - - - 322,871 - - - - - - - - Other Non-Operating Expense (49,516) (17,659) - - - (20,838) (11,134) - - - - - TOTAL NON-OPERATING REVENUES & EXPENSES 115,910 43,825 511 443,228 19,550 (21,692) (6,233) 839 134 3,915 4,159 48,892 1,405,437 142,690 95,432 1,542,131 773,320 (209,769) (2,646) (359,864) 349,323 702,595 (35,660) (231,512) Contributions 473,099 353,535 - 1,074,542 - 66,401 - - - - - - Transfers In - - - 18,649 - - - - - - 119,023 - Transfers Out (76,846) (75,810) - (141,003) - - - - - (295,379) - (7,000) TOTAL CONTRIBUTIONS & TRANSFERS 396,253 277,725 - 952,187 - 66,401 - - - (295,379) 119,023 (7,000) CHANGE IN FUND BALANCE 1,801,690 420,415 95,432 2,494,319 773,320 (143,368) (2,646) (359,864) 349,323 407,216 83,363 (238,512) BEGINNING FUND BALANCE - January 1, 2014 68,655,974 75,821,385 1,826,811 51,686,935 1,598,247 9,318,866 888,882 1,815,731 - 1,938,141 4,604,445 10,714,407 ENDING FUND BALANCE - September 30, 2014 70,457,664 76,241,800 1,922,243 54,181,254 2,371,567 9,175,498 886,236 1,455,867 349,323 2,345,357 4,687,808 10,475,895 1 September's Waste Management payment in the amount of $833,263 has been added to the Solid Waste Fund and is reflected in Ending Fund Balance. INTERNAL SERVICE FUNDSFUND BALANCE The following table provides an analysis of each of the City's Enterprise and Internal Service funds - showing 2014 revenues and expenditures by fund. INCOME (LOSS) BEFORE CONTRIBUTIONS & TRANSFERS CEMETERY INSURANCE WORKER'S COMPENSATION FACILITIESWATERSEWERSEWER METRO STORM SOLID WASTE AIRPORT ENTERPRISE FUNDS 24