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2015 Comprehensive Annual Financial Report For the Year Ended December 31, 2015
CITY OF AUBURN WASHINGTON COMPREHENSIVE ANNUAL FINANCIAL REPORT Fiscal Year January 1, 2015 through December 31, 2015 Prepared by Finance Department Shelley Coleman, Finance Director
City of Auburn: 2015 CAFR Table of Contents i COMPREHENSIVE ANNUAL FINANCIAL REPORT For the Year Ended December 31, 2015 TABLE OF CONTENTS I. INTRODUCTORY SECTION Page Title Page Table
of Contents .................................................................................................................................. i City Officials ..........................................................................................................................................
1 Organizational Chart ............................................................................................................................. 2 Letter of Transmittal ..............................................................................................................................
3 Certificate of Achievement ..................................................................................................................... 9 II. FINANCIAL SECTION Auditor’s Report
................................................................................................................................... 11 Management’s Discussion and Analysis ...................................................................................................
15 Basic Financial Statements Government-wide Financial Statements: Statement of Net Position ............................................................................................................
35 Statement of Activities ................................................................................................................. 36 Fund Financial Statements: Governmental
Funds Balance Sheet ........................................................................................................................... 40 Reconciliation of Balance Sheet of
Government Funds to the Statement of Net Position ............. 41 Statement of Revenues, Expenses and Changes in Fund Balances ............................................... 42 Reconciliation
of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Government Funds to the Statement of Activities ........................................ 43 Statement of Revenues,
Expenses and Changes in Fund Balances – Budget and Actual: General Fund ........................................................................................................................
44 Arterial Street Fund ............................................................................................................... 45 Proprietary Funds: Statement of Net Position
......................................................................................................... 48 Statement of Revenues, Expenses, and Changes in Fund Net Position ........................................
49 Statement of Cash Flows .......................................................................................................... 50 Fiduciary Funds: Statement of Fiduciary Net Position
.......................................................................................... 54 Statement of Changes in Fiduciary Net Position ........................................................................
55 Notes to the Financial Statements ......................................................................................................... 57 Required Supplemental Information ......................................................................................................
101 Combining and Individual Fund Financial Statements and Schedules Non-Major Government Funds: Combining Balance Sheet .........................................................................................................
108 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances ....................... 109 Non-Major Special Revenue Funds: Combining Balance Sheet .........................................................................................................
112 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances ....................... 114 Statement of Revenues, Expenditures, and Changes in Fund Balances – Budget
and Actual: Local Street Special Revenue Fund ......................................................................................... 116 Hotel/Motel Tax Special Revenue Fund .................................................................................
117 Arterial Street Preservation Special Revenue Fund .................................................................. 118
City of Auburn: 2015 CAFR Table of Contents ii Statement of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual: Page (continued) Drug Forfeiture Special Revenue
Fund ....................................................................................119 Housing & Community Development Special Revenue Fund .................................................
120 Recreation Trails Special Revenue Fund ..................................................................................121 Business Improvement Area Special Revenue Fund ................................................................
122 Cumulative Reserve Special Revenue Fund ............................................................................ 123 Mitigation Special Revenue Fund ..........................................................................................
124 Non-Major Debt Service Funds: Combining Balance Sheet ......................................................................................................... 126 Combining Statement
of Revenues, Expenditures, and Changes in Fund Balances ...................... 127 Capital Project Funds: Combining Balance Sheet .........................................................................................................
130 Combining Statement of Revenues, Expenditures, and Changes in Fund Balance ........................131 Permanent Fund: Balance Sheet..........................................................................................................................
134 Statement of Revenues, Expenditures and Changes in Fund Balance .......................................... 135 Non-Major Enterprise Funds: Combining Statement of Net Position ......................................................................................
138 Combining Statement of Revenues, Expenses, and Changes in Net Position ............................... 139 Combining Statement of Cash Flows ........................................................................................
140 Internal Service Funds: Combining Statement of Net Position ...................................................................................... 144 Combining Statement of Revenues,
Expenses, and Changes in Net Position ............................... 145 Combining Statement of Cash Flows ........................................................................................
146 Agency Fund: Statement of Changes in Assets and Liabilities ........................................................................... 150 III. STATISTICAL SECTION Schedule Net
Position by Components .................................................................................................. 1 ............ 152 Changes in Net Positions .......................................................................................................
2 ............ 153 Fund Balances, Government Funds ........................................................................................ 3 ............ 154 Changes in Fund Balances,
Government Funds ....................................................................... 4 ............ 155 Tax Revenues by Source, Government Funds .........................................................................
5 ............ 156 Assessed Value by Type ......................................................................................................... 6 ............ 157 Property Tax Data
................................................................................................................. 7 ............ 158 Property Tax Levies and Collections ......................................................................................
8 ............ 160 Principal Taxpayers – Property Taxes ..................................................................................... 9 .............161 Retail Tax Collections
by Sector ............................................................................................ 10 ............ 162 Ratios of Outstanding Debt by Type ......................................................................................11
............ 163 Computation of Legal Debt Margin ...................................................................................... 12 ............ 164 Legal Debt Margin Ratios
..................................................................................................... 13 ............ 164 Computation of Net Direct and Estimated Overlapping Debt ................................................
14 ............ 165 Ratios of Net General Bonded Debt to Assessed Value .......................................................... 15 ............ 166 Pledged Revenue Bond Coverages
........................................................................................ 16 ............ 167 Population, Income and Housing Trends ..............................................................................
17 ............ 168 Major Employers.................................................................................................................. 18 ............ 169 Staffing Levels
by Department .............................................................................................. 19 ............ 170 Operating Indicators by Department ...................................................................................
20 .............171 Capital Asset Indicators by Department ................................................................................. 21 ............ 172 Utility Customers by
Customer Class .................................................................................... 22 ............ 172
1 CITY COUNCIL CITY OFFICIALS MAYOR Nancy Backus Claude DaCorsi John Holman Bob Baggett Bill Peloza Yolanda Trout-Manuel Rich Wagner Largo Wales DEPARTMENT DIRECTORS Finance Director
Shelley Coleman City Attorney Dan Heid Human Resources /Risk & Property Mgmt. Director Rob Roscoe Innovation & Technology Director Paul Haugan Parks, Arts and Recreation Director Daryl
Faber Community Development & Public Works Director Kevin Snyder Police Chief Bob Lee Administration Director Dana Hinman
2 Citizens Mayor Nancy Backus City Council Director of Human Resources & Risk/Property Management Rob Roscoe City Attorney Dan Heid Police Chief Bob Lee Director of Innovation and Technology
Paul Haugan Director of Administration Dana Hinman Community Development & Public Works Kevin Snyder Parks/Art and Recreation Director Daryl Faber Finance Director Shelley Coleman
3 June 23, 2016 Honorable Nancy Backus, Mayor Members of the Auburn City Council Citizens of the City of Auburn 25 W Main Street Auburn, WA 98001 We are pleased to present the City’s
Comprehensive Annual Financial Report for the year ended December 31, 2015. We publish this financial statement in conformity with generally accepted accounting principles (GAAP). It
has been audited in accordance with generally accepted auditing standards by the Washington State Auditor’s Office. Therefore, we issue and transmit to you the City of Auburn’s Comprehensive
Annual Financial Report (CAFR) for the fiscal year ended December 31, 2015. This transmittal letter provides an overview of the report and the financial condition of the City. It also
provides insight into the history of the City and the economic conditions affecting it, and describes the systems and controls employed by the Finance department. The Comprehensive Annual
Financial Report has several significant uses. First, it provides a general overview of the City’s finances to the general public and taxpayers. Second, it is referenced by bond buyers
and rating agencies to evaluate the City’s fiscal stability and creditworthiness. Finally, the CAFR is a series of financial statements that have been audited by the State Auditor’s
Office and provides assurances that assets are safeguarded and funds are expended as they were legally appropriated in the biennial budget. I. INTRODUCTION A. Management Representation
The Auburn Finance Department prepared the report and accepts complete responsibility for the accuracy, completeness, and fairness of presentation of the information included. The data
is believed to be accurate in all material respects, and it is believed that all significant information necessary for an understanding of the affairs and financial condition of the
City has been disclosed. The report has been prepared in conformance with generally accepted accounting principles and in conformance with financial reporting standards issued by the
Governmental Accounting Standards Board (GASB). City management has developed and evaluated a comprehensive internal control structure that is designed to protect the City’s assets from
loss, theft, or misuse and to compile sufficient reliable information for the preparation of the City’s financial statements in conformity with generally accepted accounting principles.
Because the cost of internal controls should not outweigh the benefits, the City’s internal control structure is designed to provide reasonable, rather than absolute, assurance that
the financial statements will be free from material misstatement. As management, we attest that, to the best of our knowledge and belief, this financial report is complete and reliable
in all material aspects.
City of Auburn: 2015 CAFR Letter of Transmittal 4 As a recipient of federal, state and county financial assistance the City is required to undergo an annual single audit in conformity
with U.S. Office of Management and Budget Circular A-133, Audits of State and Local Governments. The audit is conducted by the State Auditor’s Office in conjunction with the City’s annual
independent audit. The results of the City’s annual single audit for the fiscal year ended December 31, 2015 provided no instances of material weakness in the internal control structure
or significant violations of applicable laws. GAAP requires that management provide a narrative introduction, overview and analysis to accompany the basic financial statements in the
form of Management’s Discussion and Analysis (MD&A). This letter of transmittal is designed to complement the MD&A and should be read in conjunction with it. Auburn’s MD&A can be found
immediately following the independent auditor’s report. B. Organization of the Report The report is divided into three sections: the Introductory Section, the Financial Section, and
the Statistical Section. The Introductory Section contains the table of contents, a list of the City’s principal officials, an organizational chart, this letter of transmittal, and the
Certificate of Achievement for Excellence in Financial Reporting from the Government Finance Officers’ Association of the United States and Canada for the 2014 CAFR. The Financial Section
contains the Washington State Auditor’s Report, completed by the Washington State Auditor, Management’s Discussion and Analysis, Government-Wide Financial Statements, the Fund Financial
Statements, Notes to the Financial Statements and Other Required Combining and Supplemental Information. The Statistical Section, which is unaudited, contains a range of statistical
tables and charts that present various financial, economic, social, and demographic data about the City. This information depicts various trends that have affected the fiscal condition
of the City over the last ten years. The data presented in this section complies with the requirements of GASB Statement No. 44, Economic Condition Reporting: The Statistical Section.
C. Reporting Entity The City of Auburn was incorporated in 1891 and currently operates as a non-charter Code City under the laws of the State of Washington. Code City status in Washington
provides “home rule” authority to cities. Auburn has a Mayor/Council form of government; the Mayor is elected and is the full-time Chief Administrator. The seven-member City Council
is elected at large, rather than by district. Members of the City Council are responsible for establishing the general direction and policies for the City and for providing the resources
necessary to carry out those policies. As the City’s chief administrator, the Mayor is responsible for carrying out the policy and direction set by the City Council. This includes the
enforcement of laws and ordinances, the execution of contracts and agreements, and maintenance of peace and order in the city. The City is located primarily in southern King County (county
seat, Seattle) and a small northeastern portion of Pierce County. These are the two most populous counties in the State of Washington, comprising over 40% of the state-wide population.
The City is strategically located in relation to the labor and consumer markets of the two largest cities in the area: Seattle in King County and Tacoma in Pierce County. Auburn currently
serves approximately 75,545 people within its incorporated limits. The City provides a wide range of services, both beneficial and necessary, to its residents as well as to the adjacent
area. These services include police protection; parks and recreational facilities that include a senior center, gymnasium, golf course and museum; land use management and development
regulation; infrastructure construction and maintenance; water, sanitary sewage collection, storm
City of Auburn: 2015 CAFR Letter of Transmittal 5 drainage, and solid waste services; a general aviation airport; and a municipal cemetery. The City is a member/owner of Valley Communications
providing emergency 911 services and South Correctional Entity providing jail facilities. Both these organizations provide services to other owner/member governments and other non owner/member
governments as well through interlocal agreements. II. ECONOMIC CONDITION A. Summary of Local Economy Auburn began as a small rural community founded on agriculture and the railroad,
which maintained a significant switching and repair facility. The City has grown significantly since World War II, both as a residential community and as a commercial and industrial
location. Auburn has become a significant area for automobile sales and has also developed a substantial manufacturing and distribution base with the largest employer being The Boeing
Co., which employs approximately 6,000 people at its Auburn facility. Boeing is a worldwide supplier of aircraft and related products. Auburn has enjoyed steady residential and industrial
growth over the years as development has moved outward from the major cities. Auburn is currently home to about 4,000 businesses and is the center of the largest industrial complex in
the Pacific Northwest. The City has a growing array of manufacturing facilities, as well as distribution, wholesale, and retail operations. Auburn’s transit-orients district is home
to the MultiCare Auburn Medical Center, with a Trauma Level III emergency facility. This location serves the local geographic area, employs approximately 1,580 people, and has recently
announced plans to invest over 120 million dollars in expansion and upgrades. The City’s recent efforts to promote economic development and champion its designation as an Innovation
Partnership Zone helps to solidify Auburn’s economic standing in the region and spur new business and development activity. A number of commercial and service industry projects, currently
in progress or in the planning stages, contribute to an economic picture of future growth. These projects include the North Creek Business Park, which will become home to over 200,000
square feet of business space; the Green River College Aviation Campus, a downtown facility that will house the college’s aviation classes; Merrill Gardens, the second mixed use urban
project in the City’s downtown area; and the Outlet Collection, a newly remodeled commercial retail center. Other recent significant developments in the City include the issuance of
210 building permits for single family homes as well as about $66.2 million in commercial construction, which includes projects such as the Auburn High School, Green River College facilities,
seven new commercial/industrial projects, and the expansion of Plygem, TTF Aerospace, Shillings, and Orion Industries. These projects have positive impacts on available revenue and,
as they take hold, will serve to strengthen the City’s economic future. Since 2005 the City’s total assessed property valuation has risen from $5.1 billion in 2005 to $8.4 billion in
2015. The recent economic downturn, coupled with the impact of the Streamlined Sales Tax (SST) legislation enacted by the State of Washington that went into effect July 1, 2008, has
dropped general sales tax revenues from their high in 2007 of $17.5 million to $16.7 million in 2015. The SST impact is estimated to have eliminated approximately $200,000 per month
of sales tax revenue to the City. To lessen the financial impact on cities severely impacted by this legislation, the State of Washington implemented a mitigation plan under which the
City of Auburn received approximately $1.95 million in mitigation payments in 2015.
City of Auburn: 2015 CAFR Letter of Transmittal 6 While the City, similar to other municipalities in the region and nationally, has suffered during the recent economic recession, the
local economy is improving. Sales Tax revenue, net of criminal justice and annexation sales tax credits, constitutes approximately twenty five percent of the General Fund budget, increased
by $1.07 million (+6.8%) from 2014. Nonetheless, while the local economy is recovering, the City remains vigilant in its management of expenses to ensure it lives within its means. Despite
economic cycles, the City has continually focused on enhancing the quality of life in the community and focusing on maintaining and redeveloping its aging infrastructure. For example,
the City’s Arterial Street program is partially funded by dedicating 1.0% of utility taxes toward arterial roadway improvements. In addition, the City utilizes sales taxes collected
from new construction for the local street program, commonly referred to as the Save Our Streets (SOS) program. The City’s budgeting process is based on financial policies directed at
conserving fiscal resources while supporting programmatic strategies. Budget recommendations reflect a long-range analysis of fiscal trends. These policies and practices have not only
averted serious funding problems in the past, but have enabled the General Fund to remain on a firm financial footing during the most recent recession. The City maintains a stable financial
condition by managing expenditure budgets to available revenue streams. All funds contain adequate balances, and the City’s debt is manageable. The General fund contains a satisfactory
balance, a significant Insurance fund has been set aside for contingencies, and the Equipment Rental fund is adequate for vehicle replacement. The Proprietary and Fiduciary funds are
in satisfactory condition. The City completed a review of the City’s water, sewer and stormwater utility rates in 2012 and established rates to fund operating and capital needs through
2017 which included the issuance of new revenue bonds in 2013 to support significant new utility construction projects. An interim review of utility rates, in conjunction with the comprehensive
planning process, is underway. B. Future Economic Outlook Auburn is in a continuous process of both short-term and long-term financial planning. Short-term financial planning is inherent
in the development of the City’s biennial budget. Concurrent with the biennial budget is the review of the City’s long-term capital needs. Funding sources are assessed with the development
of the six-year Capital Facilities Plan. The capital facility plan is a component of the Comprehensive Master Plan, which outlines how the City should look and function in twenty years
and creates a vision that can be realistically implemented. An integral part of this vision is determining how to allocate the City’s financial resources to achieve the desired goals.
The City has several long-term municipal planning and capital projects underway. These include reconstruction of aged utility infrastructure; street improvements including rehabilitation
of local neighborhood streets. These projects will improve mobility, will contribute to the completion of a North/South arterial corridor, and provide for greater recreational opportunities
for the community. These municipal projects, coupled with the new private sector developments described earlier, will help ensure local economic growth continue, albeit not at the rate
experienced in the late 1990’s. The challenge is to control costs that grow at a faster rate than revenue. Areas of concern are health care costs, pension costs, other post-employment
benefits (OPEB), and public safety costs related to incarceration and labor contracts. Continuing to maintain service level in these sectors will draw valuable resources from other areas
such as infrastructure replacement and capital programs. As Auburn moves forward, economic conditions will be continually monitored and adjustments to city spending and services made
to maintain the City’s financial health. Long-term plans will be focused on ensuring the City continues to be an economically strong and viable city.
City of Auburn: 2015 CAFR Letter of Transmittal 7 III. FINANCIAL INFORMATION A. Cash Management The City invests in U.S. Treasury and Agency Issues, Prime Bankers Acceptances, Time Deposits,
and Repurchase Agreements. Investment policies and procedures, established by the Mayor and adopted by the City Council, require the City to establish a trustee to take delivery of all
investment transactions at time of payment. The City has contracted with the Bank of New York to provide delivery versus payment trustee services on all government agency investments.
The State of Washington maintains an investment pool to provide economies of scale in investing to smaller-and medium-sized cities in the State. The City uses this service for all funds
not invested in longer-term securities. The pool operates under the same legal restrictions that apply to all municipalities in the State and, consequently, uses the same instruments
as listed above. The State also takes delivery of all investment transactions. The City has adopted a comprehensive investment policy statement to guide City investment practices. These
policies are closely patterned after the recommendations in Investing Public Funds published by the Government Finance Officers Association (GFOA). Investments are restricted to less
than three years in order to maintain liquidity on all investments in all funds, yet enable the City to take advantage of the yield curve. Fiduciary funds, which involve long-term reserves
and require minimal liquidity, are invested for longer time periods. The City undertakes repurchase agreements only with financial institutions that offer the City full protection in
the event of default, by providing the delivery of the underlying security to the City. B. Risk Management The City participates in the Washington Cities’ Insurance Authority (an insurance
pool of 179 members) and the City actively pursues risk reduction in the operation of its programs. The City purchases, with employee participation, most of its health insurance for
its employees through commercial policies administered by the Association of Washington Cities. Employees represented by the Teamsters Union have insurance through the Teamsters organization.
Beginning in 2014, the City created its own worker’s compensation program and pool. Prior, the City participated in the Washington State Workers’ Compensation program. In order to keep
its long-term options open and to provide for any uninsured losses that might occur, the City has elected to build an insurance reserve (the Insurance fund). The Insurance fund supplements
various insurance coverage’s maintained by the City. This fund is also used to self-insure some limited exposures, the most significant of which is accidental loss to City-owned vehicles.
The Washington Cities’ Insurance Authority not only provides a sharing of risk by pooling of losses, it also provides an extensive array of professional services in risk management.
The pool monitors the City’s management practices and damage claims. The City follows the guidelines provided by the pool in an effort to minimize risk exposure in the day-to-day operations
of the City’s programs. The City also maintains an extensive employee safety program managed by the Human Resources department.
City of Auburn: 2015 CAFR Letter of Transmittal 8 IV. OTHER RELEVANT INFORMATION A. Independent Audit State law requires an annual audit of all City books of accounts and financial records
by the Office of the State Auditor, which is headed by an independently elected State official, the State Auditor. The Auditor has broad legal authority to inquire into all financial
and legal compliance matters and such audits are considered equal to audits by certified public accounting firms. The 2015 financial audit of the City is complete and was conducted in
conformance with Generally Accepted Auditing Standards. The financial statements of all City funds have been included in this audit. The City has been given an unqualified opinion for
2015. Please see the Auditor’s Report. The State Auditor’s Office also audits the City’s administration of its federal grants under the single audit concept. B. Awards The Government
Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of Auburn for its Comprehensive
Annual Financial Report for the fiscal year ended December 31, 2014. This was the twenty-seventh consecutive year that the City has achieved this prestigious award. In order to be awarded
a Certificate of Achievement, a government must publish an easily readable and efficiently organized comprehensive annual financial report. This report must satisfy both generally accepted
accounting principles and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. We believe that our current Comprehensive Annual Financial
Report continues to meet the Certificate of Achievement Program’s requirements and we are submitting it to the GFOA to determine its eligibility for another certificate. In 2014, the
City has also received the Government Finance Officers Association Distinguished Budget Presentation award for its 2015-2016 biennial budget. The City was one of just twenty-one cities
in the state to receive both the Certificate of Achievement for Excellence in Financial Reporting and the Distinguished Budget Presentation award for 2014. The City will be submitting
to GFOA its 2017-2018 biennial budget to determine its eligibility for this award. C. Acknowledgments Preparation of this report could not have been accomplished without the professional,
efficient, and dedicated staff of the Finance department and various other City employees who assisted in its production. Further appreciation is extended to the Mayor and City Council
for their encouragement, interest, and support in conducting the financial affairs of the City in a sound and progressive manner. The assistance of the auditors from the Washington State
Auditor’s Office is also greatly appreciated. Respectfully submitted, Shelley R. Coleman Finance Director
9 Government Finance Officers Association Certificate of Achievement for Excellence in Financial Reporting Presented to City of Auburn Washington For its Comprehensive Annual Financial
Report for the Fiscal Year Ended December 31, 2014 Executive Director/CEO
10
11 Washington State Auditor’s Office INDE PE NDE NT A U DITOR ’S RE PO RT ON FI NA N CI AL S T ATEMENTS June 23, 2016 Mayor and City Council City of Auburn Auburn, Washington REP O RT
O N TH E F I NAN CI A L S T AT EM E NTS We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund and the aggregate
remaining fund information of the City of Auburn, King County, Washington, as of and for the year ended December 31, 2015, and the related notes to the financial statements, which collectively
comprise the City’s basic financial statements as listed in the table of contents. M a n a g e m e n t ’ s Re s p o n s i b i l i t y f o r t h e F i n a n c ia l S t a t e m e n t s
Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of
America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material
misstatement, whether due to fraud or error. Au d i t o r ’ s Re s p o n s i b i l i t y Our responsibility is to express opinions on these financial statements based on our audit. We
conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government
Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the
financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements.
The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In
making those risk assessments, the auditor considers internal control relevant to the City’s preparation and fair presentation of the financial statements in order to design audit procedures
that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we express no such opinion.
An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating
the overall presentation of the financial statements.
12 We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. O p i n i o n In our opinion, the financial statements
referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund and the aggregate
remaining fund information of the City of Auburn, King County, Washington, as of December 31, 2015, and the respective changes in financial position and, where applicable, cash flows
thereof, and the respective budgetary comparison for the General and Arterial Street funds for the year then ended in accordance with accounting principles generally accepted in the
United States of America. M a t t e r s of Em p h a s i s As described in Note 1, during the year ended December 31, 2015, the City has implemented the Governmental Accounting Standards
Board Statement No. 68, Accounting and Financial Reporting for Pensions – an amendment of GASB Statement No. 27. Our opinion is not modified with respect to this matter. O t h e r M
a t t e r s Re q u i r e d S u p p l e m e n t ar y I n f o r m at i o n Accounting principles generally accepted in the United States of America require that the management’s discussion
and analysis on pages 15 through 31, pension plan information on pages 101 through 105 and information on postemployment benefits other than pensions on page 106 be presented to supplement
the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to
be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic or historical context. We have applied certain limited
procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management
about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge
we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide
us with sufficient evidence to express an opinion or provide any assurance. S u p p l e m e n t a r y a n d Ot h e r I n f o r m a ti o n Our audit was conducted for the purpose of forming
opinions on the financial statements that collectively comprise the City’s basic financial statements. The accompanying information listed as combining financial statements and supplementary
information on pages 107 through 150 is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information is the responsibility
of management and was derived from and relates directly to the underlying accounting and other records used to prepare the financial statements. This information has been subjected to
auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying
accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures
13 in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated, in all material respects, in relation to
the basic financial statements taken as a whole. The information identified in the table of contents as the Introductory and Statistical Sections is presented for purposes of additional
analysis and is not a required part of the basic financial statements of the City. Such information has not been subjected to the auditing procedures applied in the audit of the basic
financial statements and, accordingly, we do not express an opinion or provide any assurance on it. O TH ER REP O RTI N G REQ UI R ED B Y GO V ERNM E NT AU DI TI N G S T AN DA RDS In
accordance with Government Auditing Standards, we will also issue our report dated June 23, 2016, on our consideration of the City’s internal control over financial reporting and on
our tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements and other matters. The purpose of that report is to describe the scope of our
testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on
compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting
and compliance. Sincerely, TROY KELLEY STATE AUDITOR OLYMPIA, WA
14
City of Auburn: 2015 CAFR Management’s Discussion and Analysis 15 MANAGEMENT’S DISCUSSION AND ANALYSIS The City of Auburn’s (the “City”) discussion and analysis is designed to: Assist
the reader in focusing on significant financial issues Provide an overview of the City’s financial activity Identify changes in the City’s financial position (its ability to meet
future years’ challenges) Identify any material deviations from the approved budget Identify individual fund issues or concerns Management’s Discussion and Analysis is designed to
focus on the current year’s activities, resulting changes and currently known facts. Therefore, it should be read in conjunction with the Transmittal Letter and the City’s financial
statements. Financial Highlights Total government-wide net position, the difference between assets plus deferred outflows and liabilities plus deferred inflows, equal $646.8 million,
an increase of $9.5 million or 1.5%. Of this, a total of $548.9 million, or 84.9% of total net position, is net investment in capital assets, and includes assets such as utility systems,
streets, buildings, land, vehicles and equipment. An additional $5.9 million of net position is restricted for purposes of endowment and debt service. Of the remaining $92.0 million
of net position, $18.3 million is legally restricted, restricted by City policy for specific purposes, or is restricted for use by the City’s utilities and $73.7 million is unrestricted.
The net increase in government-wide net position during 2015 was $9.5 million. Of this amount, $31.7 million was directly related to the increase in City-owned net investment in capital
assets, restricted net position decreased by $6.3 million, unrestricted net position increased by $3.9 million, and there was an additional reduction of $19.8 million due to the change
in accounting principle associated with the implementation of GASB 68 (Accounting and Financial Reporting for Pensions). This adjustment is further described in Note 1 to the financial
statements. Business-type net position increased by $4.4 million to $225.3 million during 2015 as a result of net capital investment related to the City’s water, sewer and storm water
utilities. Governmental fund balances at year-end totaled $55.4 million. Of this amount, $20.3 million, or 37%, is unassigned and available to fund ongoing activities. Compared to
2014, total governmental fund balances increased by $4.3 million. This increase reflects the net effect of a general improvement in the regional economy and continued vigilance in monitoring
general spending. Total City debt payments during the year, net of compensated absences and other post-employment benefits, were $4.5 million. Total long-term liabilities, including
bonds and loans, totaled $127.3 million at December 31, 2015. The ending long-term liabilities is a increase of $16.1 million from 2014 and is primarily the result of the pension liability.
See note 9 for further information on long-term liability activity during the year.
City of Auburn: 2015 CAFR Management’s Discussion and Analysis 16 Other City Highlights: Parks and Community Development Construction started on a combined Community & Events and Youth/Teen
Center and will be completed by summer 2016. The center will provide approximately 21,000 square feet of building space to be used for educational, cultural, and social activities.
The Park, Recreation, and Open Space Plan update was completed as part of the City’s overarching Comprehensive Plan update. The plan includes a comprehensive inventory of the City’s
park system, a demands and needs analysis, recommended park improvements, and a summary of the programs provided by the Parks Department. The City prepared the Auburn Community Campus
Master Plan, covering Les Gove Park, the Senior Center, White River Valley Museum, King County Library, Gym and Teen Center, and the new Community Center. Main elements of the plan include
a vision for improving vehicular and pedestrian circulation to and within the campus, and future park improvements. Auburn hosted its first Geocaching Adventure with almost 175 participants
and an additional 60 people completing the Geocaching Adventure challenge post event. The City of Auburn celebrated the 50th Anniversary of the Veterans Day Parade. The event had over
20,000 spectators and 6,000 parade participants. The City launched the Auburn Community Teen Players, bridging the programming gap between the Auburn Community Players and the AveKids
youth productions. Twenty-six teens participate in the four show run of Legally Blonde the Musical, with 673 people attending the performance. Launched the Downtown Façade Improvement
Program. Opened and closed more than 640 code enforcement cases. Processed more than 3,000 permits and 880 licenses, completed 6,500 building inspections, conducted 5,700 permit
reviews, issued 4,000 decisions, and participated in more than 50,000 interactions with customers. Assembled a multidisciplinary team that learned the principles of LEAN and how to
apply them to development review processes. Engineering Services Completed a major update to the Water, Sanitary Sewer, Storm Drainage and Transportation comprehensive plans, including
planning for the system needs over the next 20-year period. Completed an update of system development charges for Water, Sanitary Sewer and Storm Drainage in support of capital projects
for these systems. Completed access improvements, emergency power, and corrosion protection at sewage pump stations to improve worker safety, emergency preparedness, and enhance the
facilities’ longevity. Initiated installation of Automated Metering Infrastructure system for water meter data collection, which is a 3-year project. Completed construction of the
Storm Drainage infrastructure and decant facility improvements at the Maintenance & Operations facility to improve operations and protect the environment. Completed pavement patching
and overlay work to preserve arterial/collector and local roadways throughout the City. Completed annual traffic signal improvements at various locations throughout the City. Completed
the AWS and M Street SE Intersection Improvements.
City of Auburn: 2015 CAFR Management’s Discussion and Analysis 17 Completed the BNSF Utility Crossings Project which addressed utility crossings of the BNSF right-of-way that will
be affected by the third rail line that BNSF/Sound Transit plans to build in 2016. The project also replaced a storm drain pipe adjacent to the railroad tracks at 37th Street. Completed
the 30th Street NE Storm Improvements (Phase 1A ) that replaced the 30-inch storm drainage line along 30th Street NE from the north end of the Airport to the Brannan Park Storm Pump
Station to address localized flooding issues. Completed the Valley AC Watermain Replacement project which completed replacement of asbestos cement water lines along AWN, 49th and B
St NW and at the M&O/Parks Maintenance area. Worked in partnership with the U.S. Army Corps of Engineers on the construction of the Mill Creek Wetland 5K Green/Duwamish Ecosystem Restoration
Project. Completed construction of the Fenster Levee Setback Project at Fenster Nature Area on the Green River. Conducted ecological restoration volunteer events at Fenster Nature
Area and Auburn Environmental Park. Initiated a multi-year inventory of City environmental property assets, including sites owned by the City, and City conservation easement and deed
restriction interests on privately-owned environmental sites. Provided field technical assistance throughout the year to property owners on a variety of environmental issues and best
practices for protecting environmentally sensitive areas such as streams, wetlands, and floodplains. Maintenance & Operations Services Improved the inventory catalogue with bin locations
and photos on all parts to streamline the inventory process so Central Stores staff can dedicate more time to seeking out the absolute best price on inventory purchases, as well as generating
more accurate stocking levels. The Water division successfully took 1,302 regulatory samples from the water system, ensuring safe drinking water is provided to our customers. The
Storm division cleaned 21 ponds at a cost savings of more than 50% compared to contracting for this service in past years. The Vegetation division successfully removed 37 trees from
a planter strip that were damaging City sidewalks and creating a safety hazard. The area was replanted with less invasive flowering trees. Overview of the Financial Statements The City’s
basic financial statements are presented in three parts: 1) Government-wide financial statements 2) Fund financial statements 3) Notes to the financial statements These statements report
the Cities net position, and changes in them. The net position is the difference between assets plus deferred outflows of resources and liabilities plus deferred inflows of resources.
Other supplementary information, in addition to the basic financial statements, is also contained in this report. This section of the management’s discussion and analysis is intended
to introduce and explain the basic financial statements.
City of Auburn: 2015 CAFR Management’s Discussion and Analysis 18 Government-wide Financial Statements The Financial Statements are presented in conformity with the Governmental Accounting
Standards Board (GASB), which establishes GAAP for governmental entities. The City adopted the provisions of Statement No. 67 – Financial Reporting for Pension Plans, an amendment of
GASB Statement No. 25, Statement No. 69 – Government Combinations and Disposals of Government Operations; and Statement No. 70 – Accounting and Financial Reporting for Nonexchange Financial
Guarantees. There is no material impact to the City of implementing these standards. GASB No. 68 – Accounting and Financial Reporting for Pensions was adopted for fiscal year 2015 reporting.
This Statement changes how the city accounts and reports for is cost sharing multiemployer pension plans. The government-wide financial statements are designed to be corporate-like in
that all governmental and business-type activities are consolidated into columns which add to a total for the City. The focus of the Statement of Net Position is designed to be similar
to bottom-line results for the City and its governmental and business-type activities. This statement combines and consolidates governmental funds’ current financial resources (short-term
spendable resources) with capital assets, deferred outflows of resources, long-term obligations and deferred inflows of resources, (which there are none to report). Over time, increases
or decreases in net position may be one indicator of improvement or deterioration in the City’s overall financial health. The Statement of Activities is focused on both the gross and
net cost of various functions, including both governmental and business-type activities, which are supported by the City’s general tax and other revenues. This is intended to summarize
and simplify the user’s analysis of cost of various governmental services and/or subsidy to various businesstype activities. The revenue generated by the specific functions (charges
for services, grants, and contributions) is compared to the expenses for those functions to show how much each function either supports itself or relies on taxes and other general funding
sources for support. All activity on this statement is reported on the accrual basis of accounting, requiring that revenues are reported when they are earned and expenses are reported
when they are incurred, regardless of when cash is received or disbursed. Governmental activities of the City include general government (executive, finance, legal, human resources,
and contracted court), security (police), physical environment, economic environment, transportation, health and human services, and culture and recreation. The City’s business-type
activities include water, sanitary sewer, storm water and solid waste utilities, as well as the operations of an airport and cemetery. Governmental activities are primarily supported
by taxes, charges for services, and grants while business-type activities are self-supporting through user fees and charges. Fund Financial Statements The Fund Financial Statements are
the traditional reporting format for governments. A fund is a fiscal and accounting entity with a self-balancing set of accounts used to account for specific activities or meet certain
objectives. While the government-wide statements present the City’s finances based on the type of activity (general government vs. business type), the Fund Financial Statements are presented
by fund type, such as the general fund, special revenue funds and proprietary funds, with the focus on major funds. Governmental Funds are used to account for essentially the same functions
that are reported as governmental activities in the government-wide financial statements. The government major fund is presented utilizing the “sources and uses of liquid resources”
basis. This is the manner in which the budget is typically developed. The basis of accounting is different between the governmental fund statements and the government-wide financial
statements. The governmental fund statements focus on the near-term revenues/financial resources and expenditures while the government-wide financial statements include both near-term
and long-term revenues/financial resources and expenses. The information in the governmental fund statements can be used to evaluate the City’s near-term financing
City of Auburn: 2015 CAFR Management’s Discussion and Analysis 19 requirements and immediate fiscal health. Comparing the governmental fund statements with the government-wide statements
can help the reader better understand the long-term impact of the City’s current-year financing decisions. Because the basis of accounting is different between the governmental fund
statements and the government-wide financial statements, reconciliations are provided. The reconciliation between the governmental fund Balance Sheets and the government-wide Statement
of Net Position is found directly following the governmental funds’ Balance Sheet, the reconciliation between the governmental fund Statement of Revenues, Expenditures and Changes in
Fund Balance and the government-wide Statement of Activities is found directly following the governmental funds’ Statement of Revenues, Expenses, and Changes in Fund Balances. The City
maintains twenty individual governmental funds. Of these, three are considered major (the general fund, the arterial street fund, and the capital improvement projects fund) and are presented
separately in the governmental fund Balance Sheet and the governmental fund Statement of Revenues, Expenditures and Changes in Fund Balances. The remaining governmental funds are combined
into a single column labeled “Other Governmental Funds”. Individual fund data for each of the other governmental funds can be found in the combining statements later in this report.
The City maintains budgetary control over its operating funds through the adoption of a biennial budget. Budgets are adopted at the fund level according to state law. Budgetary comparison
statements are presented for the general and arterial street funds as part of the basic financial statements. Other budgetary comparison statements are included following the other government
funds’ combining statements in this report. Proprietary funds are used by governments to account for their business-type activities and use the same basis of accounting utilized in private
industry. Business-type activities provide specific goods or services to a group of customers that are paid for by fees charged to those customers. There is a direct relationship between
the fees paid and the services rendered. The City has two types of proprietary funds: enterprise funds and internal service funds. Enterprise funds are used to account for goods and
services provided to citizens, while internal service funds are used to account for goods and services provided internally to various City departments. Enterprise funds report the same
functions presented as business-type activities in the government-wide statements, but in greater detail. The City’s enterprise fund statements provide information on the City’s four
utilities (water, sanitary sewer, storm water, and solid waste) as well as the City-owned airport and cemetery. Internal service funds are an essential accounting tool used to accumulate
and allocate costs internally among the City’s various functions. The City uses internal service funds to account for its fleet of vehicles, its maintenance and operation of facilities,
the City-wide provision of computer hardware and software services, the cost of employees who are affected by occupational injury or illness, and its insurance premiums. Internal service
funds benefit both governmental and business-type activities, and are allocated accordingly in the government-wide statement of activities. Fiduciary funds account for assets held by
the City in a trustee capacity or as an agent for individuals, private organizations, other governments or other funds. Fiduciary funds are not included in the government-wide financial
statements because their assets are not available to support the City’s activities. The City has two fiduciary funds: a pension fund and an agency fund, and are accounted for on the
accrual basis. As agency funds are custodial in nature, they do not include revenues and expenses.
City of Auburn: 2015 CAFR Management’s Discussion and Analysis 20 Notes to the Financial Statements The notes provide additional information that is essential to a full understanding
of the data provided in the government-wide and fund financial statements. The notes to the financial statements can be found at the end of the Basic Financial Statements section. Other
Information In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information concerning the budget vs. actual
reports of the City’s general fund and major special revenue funds. The budget vs. actual required supplementary information can be found on page 44 and 45, and the pension benefit and
other postemployment benefit required supplementary information is found in the required supplemental information. The combining statements referred to earlier in connection with nonmajor
governmental funds, nonmajor enterprise funds, and internal service funds are presented in the section titled “Fund Financial Statements and Schedules”. Government-wide Financial Analysis
The statement of net position may serve as a useful indicator of the City’s financial position. The overall financial position has improved for the City of Auburn over the prior year.
Changes in Net Position from 2014 to 2015 show an increase in total net position of $9.5 million. Following is a condensed version of the government-wide statement of net position with
a comparison to 2014: As of 12/31/15 As of 12/31/14 As of 12/31/15 As of 12/31/14 As of 12/31/15 As of 12/31/14 Current and other assets $ 114,267,041 $ 107,838,776 $ 52,851,281 $ 59,065,425
$ 167,118,322 $ 166,904,201 Capital assets, net of accumulated depreciation 395,857,434 383,675,820 225,307,714 210,726,930 621,165,148 594,402,750 Total assets 510,124,475 491,514,596
278,158,995 269,792,355 788,283,470 761,306,951 Deferred Outflows of Resources 2,058,977 22,344 795,562 41,546 2,854,539 63,890 Long-term liabilities 77,339,930 64,972,946 43,119,532
39,409,343 120,459,462 104,382,289 Other liabilities 10,090,059 10,180,595 9,520,926 9,485,952 19,610,985 19,666,547 Total liabilities 87,429,989 75,153,541 52,640,458 48,895,295 140,070,447
124,048,836 Deferred Inflows of Resources 3,260,251 970,315 4,230,566 Net position Net investment in capital assets 361,279,833 348,080,505 187,604,782 169,098,916 548,884,615 517,179,421
Restricted for: Capital Projects 17,134,142 14,012,967 799 9,395,125 17,134,941 23,408,092 Nonexpendable Permanent Endowment 1,585,707 1,574,148 --1,585,707 1,574,148 Debt Service 13,278
34,856 4,349,763 4,307,307 4,363,041 4,342,163 Tourist Promotion 201,293 166,896 --201,293 166,896 Drug Investigation & Enforce 443,161 539,236 --443,161 539,236 Comm Dev Block Grant
44,904 44,904 --44,904 44,904 Central Business Distr Dev 48,395 31,321 --48,395 31,321 Rate Stabilization --413,778 413,178 413,778 413,178 Unrestricted 40,742,499 51,898,566 32,974,662
37,724,080 73,717,161 89,622,646 Total net position $ 421,493,212 416,383,399 $ 225,343,784 $ 220,938,606 $ 646,836,996 $ 637,322,005 Governmental Activities Business-type Activities
Total STATEMENT OF NET POSITION Comparative Analysis of 2015 and 2014
City of Auburn: 2015 CAFR Management’s Discussion and Analysis 21 The City’s net position increased by $9.5 million, or 1.5%. The largest component of the City’s net position, $548.9
million, or 84.9%, is its net investment in capital assets. These capital assets, such as streets, parks, trails, and vehicles and equipment related to police and public works, are used
to provide services to the citizens. As a result, these assets are not for sale, and are therefore not available to fund current and future City obligations. The City elected the GASB
34 reporting option to include all general infrastructure of the City acquired or substantially renovated since 1980. The largest component of unrestricted net position, $40.7 million,
may be used for functions such as public safety employee salaries and supplies, park and road maintenance, and other general governmental services. The second largest component of unrestricted
net position, $33.0 million, represents the unrestricted net position of the City’s business-type activities and may only be spent on activities related to one of the four City utilities
(water, sanitary sewer, storm water and solid waste) or to the City-owned ventures (airport and cemetery). Examples of utility activities include maintenance of water/sewer mains, pump
and lift stations, storm drain flushing, water meter reading, and garbage collection. Activities related to the other City-owned ventures include maintenance of hangars and runways at
the airport, and grooming and landscaping at the cemetery. Restricted governmental fund net position is $19.5 million and is restricted for purposes such as capital project construction,
debt service, drug investigation and enforcement, and endowment. Total net investment in capital assets increased $31.7 million. Changes in Net Position The change in net position represents
the increase or decrease in City net position resulting from its various activities. Following is a condensed version of the City’s changes in net position. The table shows the revenues,
expenses and related changes in net position for both governmental-type and business-type activities: 2015 2014 2015 2014 2015 2014 Revenues: Program revenues Charges for services $
11,109,069 $ 11,335,041 $ 63,391,139 $ 60,332,817 $ 74,500,208 $ 71,667,858 Operating grants and contributions 4,234,309 1,333,652 111,025 111,025 4,345,334 1,444,677 Capital grants
and contributions 19,526,548 6,001,230 5,821,857 5,070,810 25,348,405 11,072,041 General revenues Property taxes 17,271,705 15,867,838 --17,271,705 15,867,838 Sales taxes 21,125,730
19,744,684 --21,125,730 19,744,684 Interfund utility taxes 4,260,831 4,068,667 --4,260,831 4,068,667 Admission & utility taxes 8,838,179 9,040,015 --8,838,179 9,040,015 Excise taxes
4,999,517 2,888,797 --4,999,517 2,888,797 Other taxes 4,722,482 4,601,925 --4,722,482 4,601,925 Investment earnings 118,399 105,117 70,560 51,261 188,959 156,378 Miscellaneous revenue
194,600 178,482 1,877,096 2,700,233 2,071,696 2,878,714 Total revenues 96,401,369 75,165,448 71,271,677 68,266,146 167,673,046 143,431,594 Expenses: General government 9,187,539 8,363,427
--9,187,539 8,363,427 Public safety 29,883,217 27,144,153 --29,883,217 27,144,153 Transportation 17,324,036 16,150,877 --17,324,036 16,150,877 Physical environment 2,924,046 2,976,461
--2,924,046 2,976,461 Culture and recreation 12,096,651 11,094,524 --12,096,651 11,094,524 Economic environment 3,044,354 2,751,869 --3,044,354 2,751,869 Health and human services 925,299
622,374 --925,299 622,374 Interest on long-term debt 1,986,853 3,615,211 --1,986,853 3,615,211 Water --13,691,529 11,992,944 13,691,529 11,992,944 Sanitary sewer --23,992,161 23,026,216
23,992,161 23,026,216 Storm drainage --8,308,559 7,668,072 8,308,559 7,668,072 Solid waste --12,907,832 12,760,313 12,907,832 12,760,313 Golf course ------Other business-type activities
--2,062,695 1,924,874 2,062,695 1,924,874 Total expenses 77,371,995 72,718,896 60,962,776 57,372,419 138,334,771 130,091,315 Increase in net position before transfers 19,029,374 2,446,552
10,308,901 10,893,727 29,338,275 13,340,279 Transfers (462,955) 5,294,793 462,955 (5,294,793) --Change in net position 18,566,419 7,741,345 10,771,856 5,598,934 29,338,275 13,340,279
Net Position, January 1, as Previously Reported 416,383,399 408,642,054 220,938,606 215,339,672 637,322,005 623,981,726 Change in Accounting Principle (13,456,606) -(6,366,678) -(19,823,284)
-Net Position, January 1, as Restated 402,926,793 408,642,054 214,571,928 215,339,672 617,498,721 619,979,305 Net position, December 31 $ 421,493,212 $ 416,383,399 $ 225,343,784 $ 220,938,606
$ 646,836,996 $ 637,322,005 Governmental Activities Business-type Activities Total CHANGES IN NET POSITION Comparative Analysis of 2015 and 2014
City of Auburn: 2015 CAFR Management’s Discussion and Analysis 22 Governmental activities contributed $18.6 million to the total increase in City net position. Revenues to fund capital
assets are recorded as program or general revenues in the statement of activities. However, asset purchases are not recorded as expenses in the year purchased and construction costs
are not recorded as expenses in the year incurred. Instead, the costs are recorded as long-term assets and are depreciated over their useful life. General tax revenues increased by 8.9%
to $61.2 million between 2014 and 2015, compared to an increase of 6.3% between 2013 and 2014: Property tax revenue increased $1.4 million or 8.8%. Sales tax collections increased
$1.4 million or 7.0%, reflecting continued improvement in the economy. Utility and admission tax revenue decreased by $201,836 or 2.2%. Excise tax revenue increased by $2.1 million
or 73.1%. This change is due primarily to a significant increase in real estate excise taxes (REET) resulting from an increase in the number and size of real estate transactions. Investment
earnings increased by $13,282 in governmental activities and $19,299 in business-type activities for a government-wide increase of $32,581 or 20.8%. Government-wide miscellaneous revenue
decreased by $0.8 million to $2.1 million. Government-wide expenses increased by approximately $4.7 million or 6.4% and were largely attributable to the net change due to internal service
fund consolidations, increased wastewater treatment charges from King County, and general increases in operating expenses such as salaries and wages. The following first chart summarizes
the government activity revenue by source, while the second chart reflects the specific programs’ revenues and related expenses for the various activities of the City. Gaps between specific
programs’ revenues and their related expenditures are funded through general tax revenues. Revenues by Source – Government Activities Charges for Services 12% Capital Grants & Contributions
20% Operating Grants & Contributions 4% Property Taxes 18% Sales Taxes 22% Interfund Utility Taxes 5% Utility & Admission Taxes 9% Other Taxes 10% Other Revenue 0%
City of Auburn: 2015 CAFR Management’s Discussion and Analysis 23 Program Expenses and Revenues – Governmental Activities Business-type net position totaled $225.3 million, an increase
of 2.0%. Key components of this increase include: Business-type revenues increased $3.0 million to $71.3 million due to increases in charges for services, capital grants, and investment
earnings, which were partially offset by a decrease in miscellaneous revenue. Income (loss) before capital contributions and transfers amounted to: Water fund: $ 1,141,669 Sanitary
sewer fund: 395,641 Storm fund: 1,369,807 Solid waste fund: 862,974 Non-major funds: 292,794 $ 4,062,885 Net transfers totaled ($36,735). $0 $5 $10 $15 $20 $25 $30 Millions Program
Revenues Expenses
City of Auburn: 2015 CAFR Management’s Discussion and Analysis 24 The following chart shows the relative net position balances for each business-type fund: Business Type Net Position
– By Fund The majority of net position in the City’s enterprise funds relate to capital asset infrastructure, such as water and sewer mains and the airport runway. As such, most of the
net position is not available to support the ongoing expenses of the funds. Water 31.5% Sanitary Sewer 35.9% Storm Drainage 26.4% Solid Waste 1.5% Airport 4.2% Cemetery 0.6%
City of Auburn: 2015 CAFR Management’s Discussion and Analysis 25 Following are two charts that contrast the total net position to the spendable portion of net position for each enterprise
fund: Comparison of Total Net Position to Spendable Net Position Utility Funds Comparison of Total Net Position to Spendable Net Position Other Enterprise Funds $0 $10 $20 $30 $40 $50
$60 $70 $80 $90 Water Sanitary Sewer Storm Drainage Solid Waste Millions Spendable Net Position Total Net Position $0 $1 $2 $3 $4 $5 $6 $7 $8 $9 $10 Airport Cemetery Millions Spendable
Net Position Total Net Position
City of Auburn: 2015 CAFR Management’s Discussion and Analysis 26 The first chart following depicts the revenues and expenses for business-type funds, while the second shows the various
sources of business-type revenue. Business Type Activity Revenues and Expenses Before Capital Contributions and Transfers Business Type Activity Revenues By Source $0 $2 $3 $5 $6 $8
$9 $11 $12 $14 $15 $17 $18 $20 $21 $23 Water Sanitary Sewer Storm Drainage Solid Waste Minor Business-Type Activities Millions Revenues Expenses Charges for Services 88.0% Capital Contributions
8.2% Investment Earnings 0.1% Business-type Miscellaneous Income 3.8%
City of Auburn: 2015 CAFR Management’s Discussion and Analysis 27 Financial Analysis of Governmental Funds The purpose of the City’s governmental funds is to report on near-term revenues/financial
resources and expenditures. This information helps determine the City’s financial requirements in the near future. Specifically, fund balance is a good indicator of the City’s financial
resources. As of December 31, 2015, the City’s governmental funds had combined fund balances of $55.4 million, an increase of $4.3 million or 8.4% over the previous year. This increase
is primarily due to increases in fund balances for the General fund, Capital Improvement fund, and other governmental funds. The following table shows the changes in fund balance between
2014 and 2015. Changes in Fund Balance -By Fund Of the government funds’ total fund balances, $20.3 million is unassigned. Nonspendable, restricted, committed and assigned fund balances
total $35.2 million. Of this $35.2 million, $13.1 million is earmarked for capital projects, $13.0 million is in special revenue funds that are earmarked for specific purposes and $1.7
million is for endowment. The general fund is the primary operating fund of the City. All receipts and payments of ordinary City operations are processed through it unless they are required
to be accounted for in another fund. At the end of 2015, the general fund had a fund balance of $27.6 million, $7.2 million of which is assigned, and $20.3 million is unassigned. Other
funds that had significant fund balances include: $12.0 million in the capital improvement projects fund; used for various governmental capital asset projects. $5.9 million in the
mitigation fund; used to collect fees from new development to mitigate the cost of new roads and other infrastructure. $1.7 million in the cemetery endowed care fund; used for maintenance
of the cemetery. $8.4 million in all other government funds; used primarily for local street improvements and local revitalization funding. The general fund balance of $27.6 million
increased by $2.6 million from the prior year. Revenues increased with the continued gradual improvement in the local and regional economic conditions. At the same time, expenses increased
over 2014 due to inflation and programmatic changes. Meanwhile, the City continues its vigilance in monitoring general expenditure activity. Fund 2015 2014 Difference General fund $
27,552,062 $ 24,959,818 $ 2,592,244 Arterial street fund 2,405,821 2,781,100 (375,279) Capital improvement fund 11,990,982 9,680,898 2,310,084 Mitigation fund 5,854,370 4,900,512 953,858
Cemetery endowment fund 1,686,280 1,669,648 16,632 All other government funds 5,947,328 7,163,470 (1,216,142) Total $ 55,436,843 $ 51,155,446 $ 4,281,397
City of Auburn: 2015 CAFR Management’s Discussion and Analysis 28 The following chart shows the relative fund balances for governmental funds: Governmental Funds – Fund Balances General
fund revenue increased by $2.2 million, sources of which are shown in the chart below. Property taxes increased $1.4 million and sales taxes increased $0.9 million. Licenses and Permits
decreased by $326,000 and Charges for Services increased by $162,000. Building permit and Plan Check activity decreased slightly from 2014 levels while Intergovernmental revenues increased
by $246,000. Fines and Forfeitures decreased by $300,000, reflecting the discontinuation of the Redflex red light traffic cameras in June 2014. 2015 General Fund Revenue Increases –
By Source General Fund 50% Arterial Street Fund 4% Capital Improvement Fund 22% Mitigation Fund 10% Cemetery Endowment Fund 3% All Other Government Funds 11% Property Taxes $1,394,378
Sales Taxes $823,787 Interfund Utility Taxes $164,712 Utility & Admission Taxes ($144,356)Licenses & Permits ($326,230)Charges for Services $161,775 Fines & Forfeitures ($300,458) Intergovernmental
$246,174 Miscellaneous $150,199 ($500,000) ($300,000) ($100,000) $100,000 $300,000 $500,000 $700,000 $900,000 $1,100,000 $1,300,000 $1,500,000
City of Auburn: 2015 CAFR Management’s Discussion and Analysis 29 Financial Analysis of Proprietary Funds The City’s proprietary funds provide the same type of information as found in
the government-wide financial statements, but in greater detail. Factors affecting the finances of the City’s proprietary funds have already been addressed in the discussion of the City’s
business-type activities. General Fund Budgetary Highlights The City budgets biennially by adopting two single-year budgets at the end of each even-numbered year and then making adjustments
as necessary via budget amendments throughout the next two years. Major amendments to the 2015 budget included: Budgeted General Fund expenditures and transfers out increased from
$62.8 million to $65.1 million. Significant changes include increased costs for services provided by the King County District Court and with Public Health of Seattle and King County
as well as a $1.5 million transfer to cumulative reserves. Reasons for the variances in the general fund between the final budget and actual results include: Actual General Fund revenues
totaled $61.0 million and exceeded budget by $2.1 million. Significant areas of variance include sales taxes, which exceeded budget by $900,000 reflecting continued improvement in the
local economy; and licenses and permits exceeded budget by $900,000 primarily the result of development service fees and building permits. Actual General Fund expenditures totaled
$61.1 million and were under budget by $4.0 million. Departments experienced savings due to continued vigilance in monitoring city-wide expenditures. Significant areas of under-expenditure
include staff vacancies, reduced costs of medical benefits and employee pensions, reduced professional services contracts, utilities, and other miscellaneous expenses. Capital Asset
and Debt Administration Capital Assets The City’s investment in capital assets for both its governmental and business-type activities as of December 31, 2015 totaled $621.2 million (net
of accumulated depreciation), an increase of $26.8 million from 2014. This investment in capital assets includes land, buildings, improvements, machinery and equipment, construction
in progress, utility transmission/distribution systems, roads, bridges, and other infrastructure. Major capital asset changes during the year include: Developer contributions resulted
in an increase of $4.4 million in utility infrastructure assets and $11.9 million in governmental infrastructure assets. $16.7 million was spent by proprietary funds on construction
projects during the year. Purchases of government land resulted in an increase of $0.1 million. $16.2 million was spent by governmental funds on construction projects during the
year. Some of the larger projects in the governmental funds include: $1.8 million on 2015 Local Street Pavement Restoration $1.5 million on Citywide Pavement Patching & Overlay $2.8
million on AWS Fir St. SE to Hemlock St. SE $2.6 million on the Auburn Community & Youth/Teen Center
City of Auburn: 2015 CAFR Management’s Discussion and Analysis 30 A summary of the City’s capital assets follows: More detailed information on capital assets is provided in Note 7. Long-term
Debt At the end of the current fiscal year, the City had total net bonded debt outstanding of $85.0 million. Of this amount, $24.3 million is due to other governments, $30.7 million
is general obligation bonds, and $30.0 million is revenue bonds for the water, sewer and storm utilities. The City currently maintains a rating of Aa3 with Moody’s and a rating of AA+
with Standard & Poor’s for its general obligation debt. The following schedule summarizes the City’s bonded debt: Below is a summary of additional, non-bonded long-term debt and liabilities
of the City: Other Long-Term Debt and Liabilities Public Works Trust Fund loans $ 11,650,644 Capital Lease $ 569,773 Employee leave benefits 7,954,705 Other Post Employment Benefits
7,247,623 Pension Liability 18,726,785 $ 46,149,530 Washington State law limits the amount of general obligation debt a governmental entity may issue to 7.5% of its total assessed value.
Of the 7.5% limit, 2.5% is for general purposes, 2.5% is for open spaces/parks, and 2.5% is for utilities. Non-voted (limited tax) general obligation indebtedness is limited to 1.5%
of assessed valuation. The combination of unlimited tax and limited tax general obligation debt for all purposes cannot exceed 7.5% of assessed valuation. Additional information can
be found in note 9 and in the statistical section of this report. Summary of Capital Assets (net of depreciation) As of 12/31/15 As of 12/31/14 As of 12/31/15 As of 12/31/14 As of 12/31/15
As of 12/31/14 Land $ 108,289,765 $ 107,948,445 $ 12,526,187 $ 12,276,187 $ 120,815,952 $ 120,224,632 Building 48,343,093 49,309,380 1,920,573 2,047,005 50,263,666 51,356,385 Site improvements
8,184,800 8,792,962 188,501,387 181,141,467 196,686,187 189,934,429 Equipment 7,273,562 6,946,074 296,076 299,545 7,569,638 7,245,619 Intangibles 347,093 501,656 5,196,600 5,196,600
5,543,693 5,698,256 Infrastructure 213,829,979 201,159,595 --213,829,979 201,159,595 Construction in progress 9,589,142 9,017,708 16,866,891 9,766,126 26,456,033 18,783,834 $ 395,857,434
$ 383,675,820 $ 225,307,714 $ 210,726,930 $ 621,165,148 $ 594,402,750 Governmental Ac tivities Business-type Ac tivities Total Summary of Bonded Debt Governmental Activities Business-type
Activities Total General obligation bonds $ 29,980,000 $ 680,000 $ 30,660,000 Revenue bonds -30,010,000 30,010,000 Due to other governments $ 24,277,650 -24,277,650 $ 54,257,650 $ 30,690,000
$ 84,947,650
City of Auburn: 2015 CAFR Management’s Discussion and Analysis 31 Economic Factors Over the past year, economic conditions continued to improve locally. Real estate activity improved
and real property values reversed a four-year downward trend, retail sales continued to increase, and the rate of unemployment in the County and City remained at pre-recession levels.
However, while general economic conditions have improved over the past two years, the City is still recovering from the impacts of the recession and several areas at the Federal and
State levels of government continue to cast a shadow. These negative factors include; the ongoing disagreements within the United States Congress on finding a long-term solution to fund
governmental services, as well as, at a State level, long-term fiscal challenges for addressing holes left by one-time budget fixes in the current budget, and the need to fund $1 billion
in order to meet basic education mandates. Additionally, the State and City continues to grapple with the financial impacts of the streamlined sales tax revenue distributions to cities
at reduced levels, compounded by the diversion of local liquor revenues. While general economic conditions in the region have improved, and the economic outlook for the City is positive,
short-term challenges to the City’s overall financial condition remain. And although the City has seen significant private investments in the community, including development within
several blocks in downtown that will serve as a catalyst for future redevelopment, the City remains cautious and continues to vigilantly monitor and control its expenses in order to
live within the City’s means. Requests for Information This financial report is designed to provide a general overview of the City of Auburn’s finances for readers with an interest in
the City’s finances. Questions concerning this report, or requests for additional information, may be addressed to the Finance Director, City of Auburn, 25 West Main Street, Auburn WA
98001-4998.
City of Auburn: 2015 CAFR Management’s Discussion and Analysis 32
City of Auburn: 2015 CAFR Basic Financial Statements 3 3 GOVERNMENT-WIDE FINANCIAL STATEMENTS The City presents two government-wide financial statements. The Statement of Net Position
This statement provides information all on city assets and liabilities, with the difference between the two reported as net position. The Statement of Activities This statement is focused
on both the gross and net cost of various functions, including both governmental and business-type activities, which are supported by the City’s general tax and other revenues.
City of Auburn: 2015 CAFR Basic Financial Statements 3 4
City of Auburn: 2015 CAFR Basic Financial Statements 3 5 Governmental Business-Type Activities Activities Total ASSETS: Cash and Cash Equivalents (Note 3) $ 52,457,139 $ 36,626,402 $
89,083,541 Investments (Note 3) 237,310 -237,310 Receivables Taxes 282,978 -282,978 Customer Accounts 725,539 6,407,678 7,133,217 Other Receivables 2,293,660 -2,293,660 Special Assessments
15,899 -15,899 Due From Other Governmental Units (Note 6) 2,807,323 257,009 3,064,332 Internal Balances (310,427) 310,427 -Materials and Supplies Inventory 233,296 173,515 406,811 Restricted
Assets: Temporarily Restricted: Cash and Cash Equivalents (Note 3) 12,320,259 8,385,350 20,705,609 Due From Other Governmental Units (Note 6) 4,013,982 -4,013,982 Permanently Restricted:
Cash and Cash Equivalents (Note 3) 1,585,707 -1,585,707 Prepaids 765,610 -765,610 Long-Term Contracts and Notes 25,692 690,900 716,592 Net Pension Asset (Note 10) 5,350,418 -5,350,418
Investment in Joint Ventures (Note 15) 31,462,656 -31,462,656 Depreciable Capital Assets (Net of Accumulated Depreciation) (Note 7) 277,978,527 190,718,036 468,696,563 Non-Depreciable
Capital Assets (Note 7) 117,878,907 34,589,678 152,468,585 Total Assets 510,124,475 278,158,995 788,283,470 DEFERRED OUTFLOWS OF RESOURCES: Deferred Outflows from Bond Refunding 16,759
33,237 49,996 Deferred Outflows related to Pensions 2,042,218 762,325 2,804,543 Total Defer red Outflow of Resources 2,058,977 795,562 2,854,539 LIABILITIES: Accounts Payable 5,530,460
4,762,672 10,293,132 Other Liabilities Payable 684,294 -684,294 Payable From Restricted Assets: Accrued Interest -1,609,552 1,609,552 Deposits -185,309 185,309 Unearned Revenue 25,692
-25,692 Bonds and Other Debt Payable: Due Within One Year (Note 9) 3,184,663 2,963,393 6,148,056 Due in More Than One Year (Note 9) 33,651,408 37,220,946 70,872,354 Due to Other Governmental
Units: Due Within One Year (Note 9) 664,950 -664,950 Due in More Than One Year (Note 9) 23,612,700 -23,612,700 Net Penion Liability 12,828,199 5,898,586 18,726,785 Net OPEB Obligation
(Note 11) 7,247,623 -7,247,623 Total Liabilities 87,429,989 52,640,458 140,070,447 DEFERRED INFLOWS OF RESOURCES: Deferred Inflows related to Pensions 3,260,251 970,315 4,230,566 Total
Defer red Inflows of Resources 3,260,251 970,315 4,230,566 NET POSITION Net Investment in Capital Assets 361,094,242 187,604,782 548,699,024 Restricted: Capital Projects 17,134,142 799
17,134,941 Nonexpendable Permanent Endowment 1,585,707 -1,585,707 Debt Service 13,278 4,349,763 4,363,041 Tourist Promotion 201,293 -201,293 Drug Investigation and Enforcement 443,161
-443,161 Community Development Block Grant Program 44,904 -44,904 Central Business District Development 48,395 -48,395 Rate Stabilization -413,778 413,778 Unrestricted 40,928,090 32,974,662
73,902,752 Total Net Position $ 421,493,212 $ 225,343,784 $ 646,836,996 The notes to the basic financial statements are an integral part of this statement. Primary Government City of
Auburn, Washington STATEMENT OF NET POSITION December 31, 2015
City of Auburn: 2015 CAFR Basic Financial Statements 3 6 Charges Operating Capital for Services Grants and Grants and Expenses and Fines Contributions Contributions FUNCTIONS /PROGRAMS:
Pr imary Government Governmental Activities: General Government $ 9,187,539 $ 1,243,263 $ 241,898 $ 442,648 Public Safety 29,883,217 1,993,117 1,511,895 -Transportation 17,324,036 1,446,026
3,953 17,374,384 Physical Environment 2,924,046 384,485 204,079 350,628 Culture and Recreation 12,096,651 3,052,599 2,268,531 941,576 Economic Environment 3,044,354 2,989,579 -60,364
Health and Human Resources 925,299 -3,953 356,948 Interest on Long-Term Debt 1,986,853 ---77,371,995 11,109,069 4,234,309 19,526,548 Business-Type Activities Water 13,691,529 14,225,395
-1,999,057 Sanitary Sewer 23,992,161 24,325,029 -1,572,756 Storm Drainage 8,308,559 9,255,944 -2,250,044 Solid Waste 12,907,832 13,770,806 106,286 -Nonmajor Business-Type Activities
2,062,695 1,813,965 --60,962,776 63,391,139 106,286 5,821,857 Total Primary Government $ 138,334,771 $ 74,500,208 $ 4,340,595 $ 25,348,405 General Revenues: Taxes: Property Retail Sales
and Use Interfund Utility Utility Excise Other Investment Earnings Other Revenues Gain on Sale of Capital Assets Contributions to Endowment Funds Transfers (Note 5) Total General Revenues
Change in Net Position Net Position, January 1, as Previously Reported Change In Accounting Principle Net Position, January 1 restated Net Position, December 31 The notes to the basic
financial statements are an integral part of this statement. Program Revenues City of Auburn, Washington STATEMENT OF ACTIVITIES For the Year Ended December 31, 2015 Page 1 of 2
City of Auburn: 2015 CAFR Basic Financial Statements 3 7 Governmental Business-Type Activities Activity Total $ (7,259,730) $ -$ (7,259,730) (26,378,205) -(26,378,205) 1,500,327 -1,500,327
(1,984,854) -(1,984,854) (5,833,945) -(5,833,945) 5,589 -5,589 (564,398) -(564,398) (1,986,853) -(1,986,853) (42,502,069) -(42,502,069) -2,532,923 2,532,923 -1,905,624 1,905,624 -3,197,429
3,197,429 -969,260 969,260 -(248,730) (248,730) -8,356,506 8,356,506 $ (42,502,069) $ 8,356,506 $ (34,145,563) $ 17,271,705 $ -$ 17,271,705 21,125,730 -21,125,730 4,260,831 -4,260,831
8,838,179 -8,838,179 4,999,517 -4,999,517 4,722,482 -4,722,482 118,399 70,560 188,959 153,041 1,871,835 2,024,876 -10,000 10,000 41,559 -41,559 (462,955) 462,955 -61,068,488 2,415,350
63,483,838 18,566,419 10,771,856 29,338,275 416,383,399 220,938,606 637,322,005 (13,456,606) (6,366,678) (19,823,284) 402,926,793 214,571,928 617,498,721 $ 421,493,212 $ 225,343,784
$ 646,836,996 Changes in Net Position Net (Expense) Revenue and Page 2 of 2
City of Auburn: 2015 CAFR Basic Financial Statements 3 8
City of Auburn: 2015 CAFR Basic Financial Statements 3 9 MAJOR GOVERNMENTAL FUNDS General Fund The general fund accounts for all of the City's financial resources except those required
by statute or generally accepted accounting principles to be accounted for in another fund. As is the case with most municipalities, the general fund is the largest and most important
accounting entity of the City. As noted in the statements that follow, the general fund receives the bulk of its revenues from local taxes, followed by State shared revenues, service
charges, and other income. The general fund is accounted for on a modified accrual basis. Biennial budgets are adopted with appropriations lapsing at the end of each year of the biennium.
Arterial Street Fund This fund is supported by the State of Washington’s motor vehicle fuel tax and by various grants and is used for major street construction. Capital Improvement Projects
Fund This fund accounts for major capital acquisitions, and streets and parks construction projects.
City of Auburn: 2015 CAFR Basic Financial Statements 4 0 Other Total General Arterial Capital Governmental Governmental Fund Street Improvement Funds Funds ASSETS: Cash and Cash Equivalents
$ 25,743,727 $ 819,604 $ 11,867,119 $ 12,879,815 $ 51,310,265 Investments (Note 3) 237,310 ---237,310 Receivables: Taxes 282,978 ---282,978 Customer Accounts 69,161 447,874 -132,013
649,048 Other Receivables 1,966,936 --325,941 2,292,877 Special Assessments ---15,899 15,899 Interfund Receivable (Note 5) 400,000 -183,395 -583,395 Long-Term Notes and Contracts --25,692
-25,692 Due From Other Governmental Units (Note 6) 2,801,547 2,158,971 102,600 1,752,411 6,815,529 Prepaids 127 ---127 Total Assets 31,501,786 3,426,449 12,178,806 15,106,079 62,213,120
LIABILITIES, DEFERRED INFLOWS AND FUND BALANCES: Liabilities: Current Payables 2,433,228 1,020,628 162,132 1,084,065 4,700,053 Customer Deposits 343,714 ---343,714 Interfund Payable
(Note 5) ---400,000 400,000 Other Liabilities Payable 68,705 --118,137 186,842 Unearned Revenue --25,692 -25,692 Total Liabilities 2,845,647 1,020,628 187,824 1,602,202 5,656,301 Deferred
Inflow of Resources: Unavailable Revenue-Special Assessments ---15,899 15,899 Unavailable Revenue-Other 1,104,077 ---1,104,077 Total Deferred Inflow of Resources 1,104,077 --15,899 1,119,976
Fund Balances: (Note 1) Nonspendable 127 ---127 Nonspendable Permanent Endowment ---1,585,707 1,585,707 Restricted -2,405,821 8,168,980 7,310,372 17,885,173 Committed ---3,658,719 3,658,719
Assigned 7,284,159 -3,822,002 933,180 12,039,341 Unassigned 20,267,776 ---20,267,776 Total Fund Balances: 27,552,062 2,405,821 11,990,982 13,487,978 55,436,843 Total Liabilities, Deferred
Inflows and Fund Balances $ 31,501,786 $ 3,426,449 $ 12,178,806 $ 15,106,079 $ 62,213,120 The notes to the basic financial statements are an integral part of this statement. City of
Auburn, Washington BALANCE SHEET GOVERNMENTAL FUNDS December 31, 2015
City of Auburn: 2015 CAFR Basic Financial Statements 4 1 Total governmental fund balances as reported on this statement $ 55,436,843 Amounts reported for governmental activities in the
statement of net position are different because: Capital assets used in governmental activities are not financial resources and therefore 389,002,397 not reported in the governmental
funds. Other non-current assets used in governmental activities are not financial resources and therefore are not reported in the governmental funds. Investment in Joint Ventures 7,185,006
Prepaids 765,483 Interest receivable on investments 783 Net pension asset 5,350,418 13,301,690 Other long-term assets are not available to pay for current-period expenditures and therefore
are reported as unavailable revenue in the governmental funds. Unearned revenue beyond the city's 30-day measurable and available period 1,104,077 Unavailabe revenue reported for special
assessments 15,899 1,119,976 Internal service funds are used by management to charge the cost of certain activities, such as insurance, fleet maintenance and information technology,
to individual funds. The assets and liabilities of these internal service 18,420,071 funds are included in governmental activities in the statement of net position. Some liabilities
are not due and payable in the current period and therefore are not reported in the governmental funds. Bonds and loans payable (34,450,978) Premium on Bonds Payable (143,382) Deferred
amount on bond refunding 16,759 Deferred amounts related to pensions (1,146,805) Interest payable (153,438) Net pension liability (10,796,897) Net other postemployment obligations (7,247,623)
Compensated absences payable (1,865,401) (55,787,765) Net position of government activities as reported on the statement of net position $ 421,493,212 The notes to the basic financial
statements are an integral part of this statement. RECONCILIATION OF BALANCE SHEET OF GOVERNMENT FUNDS TO THE STATEMENT OF NET POSITION December 31, 2015 City of Auburn, Washington
City of Auburn: 2015 CAFR Basic Financial Statements 4 2 Other Total General Arterial Capital Governmental Governmental Fund Street Improvement Funds Funds REVENUES: Taxes: Property
$ 17,199,418 $ -$ -$ 137,690 $ 17,337,108 Retail Sales & Use 18,573,172 --2,552,558 21,125,730 Interfund Utility 3,652,141 --608,690 4,260,831 Utility 7,448,255 --1,389,924 8,838,179
Excise 333,176 -4,555,215 111,126 4,999,517 Other ---70,972 70,972 Licenses and Permits 2,074,432 ---2,074,432 Intergovernmental 5,463,158 4,626,658 83,728 3,446,902 13,620,446 Charges
for Services 4,327,676 657,469 -2,336,150 7,321,295 Fines and Forfeitures 938,775 ---938,775 Special Assessments ---7,494 7,494 Investment Earnings 72,652 2,670 18,129 24,491 117,942
Miscellaneous 1,025,251 725,173 5,677 134,318 1,890,419 Total Revenues 61,108,106 6,011,970 4,662,749 10,820,315 82,603,140 EXPENDITURES: Current: General Government 8,661,592 ---8,661,592
Security of Persons and Property 28,488,088 --676,684 29,164,772 Physical Environment 2,991,145 ---2,991,145 Transportation 3,033,415 6,862,458 -6,427,552 16,323,425 Economic Environment
2,518,399 --548,275 3,066,674 Health and Human Services 925,299 ---925,299 Culture and Recreation 10,700,631 --49 10,700,680 Debt Service: Principal 270,887 197,376 -1,245,677 1,713,940
Interest and Other Costs 35,911 21,385 -1,743,813 1,801,109 Capital Outlay 38,583 -505,205 3,036,516 3,580,304 Total Expenditures 57,663,950 7,081,219 505,205 13,678,566 78,928,940 Excess
(Deficiency) of Revenues Over (Under) Expenditures 3,444,156 (1,069,249) 4,157,544 (2,858,251) 3,674,200 OTHER FINANCING SOURCES (USES) : Sales of Capital Assets 4,000 -17,952 -21,952
Insurance Recoveries 153,041 ---153,041 Transfers In (Note 5) 2,949,197 694,348 15,167 3,442,118 7,100,830 Transfers Out (Note 5) (3,958,150) (378) (1,880,579) (829,519) (6,668,626)
Total Other Financing Sources and Uses (851,912) 693,970 (1,847,460) 2,612,599 607,197 Net Change in Fund Balances 2,592,244 (375,279) 2,310,084 (245,652) 4,281,397 Fund Balances -Beginning
24,959,818 2,781,100 9,680,898 13,733,630 51,155,446 Fund Balances -Ending $ 27,552,062 $ 2,405,821 $ 11,990,982 $ 13,487,978 $ 55,436,843 The notes to the basic financial statements
are an integral part of this statement. City of Auburn, Washington STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE GOVERNMENTAL FUNDS For the Year Ended December 31,
2015
City of Auburn: 2015 CAFR Basic Financial Statements 4 3 Net change in fund balances per the Statement of Revenues, Expenditures and Changes in Fund Balance $ 4,281,397 Amount reported
as change in net position in the Statement of Activities are different because: Governmental funds report capital outlays as expenditures. However, in the statement of activities the
cost of those assets is allocated over their estimated useful lives and reported as depreciation expense. This is the amount by which capital outlay ($14,982,139) exceeded depreciation
($15,141,188) in the current period. (159,049) Certain Capital and Joint Venture activities do not use or provide current financial resources but increase net position. 692,263 Governmental
funds report sales of assets as other financing sources while the Statement of Activities reports only the gain or loss on sale of capital assets. (1,686) Debt proceeds are reported
as financing sources in governmental fund and thus contribute to the change in fund balances. In the government-wide statements, however, issuing debt increases long-term liabilities
in the statement of net position and does not affect the statement of activities. Debt transferred from Cemetery Fund to governmental activities (499,690) Revenues in the Statement of
Activities that do not provide current financial resources are not reported as revenues in the funds: Property taxes (65,403) Special assessments (7,648) Other unavailable revenue (141,765)
Amortization of bond premium 29,141 (187,586) Developer contributions and annexation of infrastructure assets are reported as revenue in the statement of activities, but do not provide
current financial resources and are not reported as fund revenue. 11,926,684 Repayment of the principal of long-term debt consumes the current financial resources of governmental funds
but has no effect on the net position. 1,488,263 Internal service funds are used by management to charge the costs of certain activities, such as insurance and fleet maintenance, to
individual funds. The net revenue (expense) of certain internal service funds is reported with governmental activities. 956,380 Some expenses reported in the Statement of Activities
do not require the use of current financial resources and therefore are not reported as expenditures in governmental funds. Amortization of prepaids (109,355) Change in accrued interest
payable 3,547 Change in net pension obligation or asset 1,367,691 Change in net other postemployment benefits (1,036,159) Change in compensated absences payable (156,281) 69,443 Change
in net position on the Statement of Activities $ 18,566,419 The notes to the basic financial statements are an integral part of this statement. City of Auburn, Washington RECONCILIATION
OF THE STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES OF GOVERNMENT FUNDS TO THE STATEMENT OF ACTIVITIES For the Year Ended December 31, 2015
City of Auburn: 2015 CAFR Basic Financial Statements 4 4 Variance with Final Final Budget Original Adopted Actual Positive (GAAP Basis) (GAAP Basis) Results (Negative) REVENUES: Taxes:
Property $ 16,708,900 $ 17,182,600 $ 17,199,418 $ 16,818 Retail Sales & Use 17,389,000 17,389,000 18,573,172 1,184,172 Interfund Utility 3,452,300 3,452,300 3,652,141 199,841 Utility
7,786,800 7,786,800 7,448,255 (338,545) Excise 265,400 265,400 333,176 67,776 Licenses and Permits 1,851,300 1,851,300 2,074,432 223,132 Intergovernmental 5,262,430 5,434,951 5,463,158
28,207 Charges for Services 3,380,880 3,394,780 4,327,676 932,896 Fines and Forfeitures 1,388,040 788,040 938,775 150,735 Investment Earnings 36,850 36,850 56,935 20,085 Miscellaneous
681,400 689,500 1,025,251 335,751 Total Revenues 58,203,300 58,271,521 61,092,389 2,820,868 EXPENDITURES: Current: General Government 9,678,999 9,711,057 8,661,592 1,049,465 Security
of Persons and Property 30,184,255 29,771,620 28,488,088 1,283,532 Physical Environment 3,014,688 3,148,192 2,991,145 157,047 Transportation 3,405,676 3,415,676 3,033,415 382,261 Economic
Environment 2,721,609 2,966,625 2,518,399 448,226 Health and Human Services 618,126 1,146,326 925,299 221,027 Culture and Recreation 10,910,923 11,016,220 10,700,631 315,589 Debt Service
305,290 328,307 306,798 21,509 Capital Outlay 5,000 42,854 38,583 4,271 Total Expenditures 60,844,566 61,546,877 57,663,950 3,882,927 Excess (Defic iency) of Revenues Over (Under ) Expenditures
(2,641,266) (3,275,356) 3,428,439 6,703,795 OTHER FINANCING SOURCES (USES) : Sales of Capital Assets --4,000 4,000 Insurance Recoveries 25,000 50,600 153,041 102,441 Transfers In (Note
5) 539,380 560,823 149,197 (411,626) Transfers Out (Note 5) (1,968,695) (3,514,748) (3,528,044) (13,296) Total Other Financing Sources and Uses (1,404,315) (2,903,325) (3,221,806) (318,481)
Net Change in Fund Balances (4,045,581) (6,178,681) 206,633 6,385,314 Fund Balances -Beginning 14,592,724 19,360,132 19,360,132 -Fund Balances -Ending $ 10,547,143 $ 13,181,451 $ 19,566,765
$ 6,385,314 RECONCILIATION OF PERSPECTIVE DIFFERENCE BETWEEN BUDGETARY INFORMATION AND GENERALLY ACCEPTED ACCOUNTING PRINCIPLES (GAAP) : The Cumulative Reserve Fund is combined with
the General Fund for purposes of GASB Statement 54 7,985,297 Fund Balance -Ending (GAAP) $ 27,552,062 The notes to the basic financial statements are an integral part of this statement.
Budget Amounts For the Year Ended December 31, 2015 City of Auburn, Washington STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL GENERAL FUND
City of Auburn: 2015 CAFR Basic Financial Statements 4 5 Variance with Final Final Budget Original Adopted Actual Positive (GAAP Basis) (GAAP Basis) Results (Negative) REVENUES: Taxes:
Intergovernmental $ 10,090,137 $ 13,799,627 $ 4,626,658 $ (9,172,969) Charges for Services -776,356 657,469 (118,887) Investment Earnings 2,000 2,000 2,670 670 Miscellaneous 1,050,000
2,001,328 725,173 (1,276,155) Total Revenues 11,142,137 16,579,311 6,011,970 (10,567,341) EXPENDITURES: Current: Transportation 14,137,487 20,857,703 6,862,458 13,995,245 Debt Service
Principal 196,006 197,377 197,376 1 Interest and Other Costs 21,237 21,386 21,385 1 Total Expenditures 14,354,730 21,076,466 7,081,219 13,995,247 Excess (Defic iency) of Revenues Over
(Under Expenditures (3,212,593) (4,497,155) (1,069,249) 3,427,906 OTHER FINANCING SOURCES (USES) : Transfers In (Note 5) 3,008,453 3,350,137 694,348 (2,655,789) Transfers Out (Note 5)
-(10,053) (378) 9,675 Total Other Financing Sources and Uses 3,008,453 3,340,084 693,970 (2,646,114) Net Change in Fund Balances (204,140) (1,157,071) (375,279) 781,792 Fund Balances
-Beginning 1,312,844 2,781,100 2,781,100 -Fund Balances -Ending $ 1,108,704 $ 1,624,029 $ 2,405,821 $ 781,792 The notes to the basic financial statements are an integral part of this
statement. Budget Amounts For the Year Ended December 31, 2015 City of Auburn, Washington STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL ARTERIAL STREET
FUND
City of Auburn: 2015 CAFR Basic Financial Statements 4 6
City of Auburn: 2015 CAFR Basic Financial Statements 4 7 MAJOR PROPRIETARY FUNDS ENTERPRISE FUNDS The City's enterprise funds are used to account for operations that are financed and
operated in a manner similar to private business operations. The goods and services these funds provide to the general public are primarily financed by service charges. Enterprise funds
are self-supporting and use the accrual method of accounting. Auburn has four major enterprise funds. The Water Fund This fund accounts for all maintenance, construction, and debt service
requirements associated with Auburn’s water system. The Sanitary Sewer Fund This fund accounts for maintenance, construction, and debt requirements for Auburn's sanitary sewer system.
The Storm Drainage Fund This fund accounts for the maintenance, construction and debt service requirements of Auburn's storm drainage system. The Solid Waste Fund Garbage collection
services for the City are accounted for in this fund, supported almost entirely by garbage collection fees. Expenses include payment to the City's garbage contractor and other service
charges.
City of Auburn: 2015 CAFR Basic Financial Statements 4 8 Governmental Activities Non-Major Total Sanitary Storm Solid Enterprise Enterprise Internal Water Sewer Drainage Waste Funds
Funds Service Funds ASSETS: Current Assets Cash and Cash Equivalents $ 7,002,144 $ 14,160,851 $ 11,232,388 $ 3,105,740 $ 1,125,279 $ 36,626,402 $ 15,052,840 Restricted Cash: Bond Payments
1,764,431 445,929 826,055 --3,036,415 -Customer Deposits 28,301 83,272 3,422 -70,920 185,915 -Other 2,515,648 516,973 2,130,399 --5,163,020 -Customer Accounts 1,249,164 2,607,649 1,031,656
1,519,209 -6,407,678 76,491 Due From Other Governmental Units 1,495 1,451 158,875 51,683 43,505 257,009 5,776 Inventories 152,251 7,511 7,031 -6,722 173,515 233,296 Total Current Assets
12,713,434 17,823,636 15,389,826 4,676,632 1,246,426 51,849,954 15,368,403 Noncurrent Assets Long-Term Contracts and Notes -690,900 ---690,900 -Capital Assets: Land 897,971 1,695,023
5,937,014 -3,996,179 12,526,187 -Water Rights 5,196,600 ----5,196,600 -Buildings and Equipment 2,489,644 1,235,992 270,619 496,618 3,729,569 8,222,442 21,069,813 Improvements Other Than
Buildings 115,135,100 95,727,357 67,412,310 -10,777,717 289,052,484 117,158 Construction in Progress 10,225,733 2,143,531 4,155,388 -342,239 16,866,891 43,655 Less: Accumulated Depreciation
(48,254,811) (27,227,205) (22,518,801) (411,931) (8,144,142) (106,556,890) (14,375,589) Total Capital Assets (Net of A/D) 85,690,237 73,574,698 55,256,530 84,687 10,701,562 225,307,714
6,855,037 Total Noncurrent Assets 85,690,237 74,265,598 55,256,530 84,687 10,701,562 225,998,614 6,855,037 Total Assets 98,403,671 92,089,234 70,646,356 4,761,319 11,947,988 277,848,568
22,223,440 DEFERRED OUTFLOW OF RESOURCES: Deferred Outflow from Bond Refunding ----33,237 33,237 -Deferred Outflow related to Pensions 265,638 168,303 248,863 39,059 40,462 762,325 265,336
265,638 168,303 248,863 39,059 73,699 795,562 265,336 LIABILITIES: Current Liabilities: Current Payables 1,255,071 1,790,436 384,665 1,199,245 133,255 4,762,672 830,407 Customer Deposits
------300 Interfund Payables (Note 5) ----183,395 183,395 -Loans Payable -Current 572,855 288,262 ---861,117 -Employee Leave Benefits -Current 175,527 101,452 163,912 28,344 18,041 487,276
149,260 Revenue Bonds Payable -Current 887,033 154,665 423,302 --1,465,000 -General Obligation Bonds Payable -Current ----150,000 150,000 -Payable From Restricted Assets: Accrued Interest
908,148 298,652 402,752 --1,609,552 -Deposits 28,301 83,272 3,422 -70,314 185,309 -Other Liabilities Payable ------39,107 Total Current Liabilities 3,826,935 2,716,739 1,378,053 1,227,589
555,005 9,704,321 1,019,074 Noncurrent Liabilities Employee Leave Benefits 48,756 28,180 45,530 7,873 5,011 135,350 41,459 Other LT Liabilities Payable ------146,484 Loans Payable 4,035,798
2,666,932 ---6,702,730 -Revenue Bonds Payable 16,712,597 4,734,612 8,392,170 --29,839,379 -General Obligation Bonds Payable ----543,487 543,487 -Net Pension Liability 2,880,872 1,192,185
1,448,887 193,738 182,904 5,898,586 2,031,302 Total Noncurrent Liabilities 23,678,023 8,621,909 9,886,587 201,611 731,402 43,119,532 2,219,245 Total Liabilities 27,504,958 11,338,648
11,264,640 1,429,200 1,286,407 52,823,853 3,238,319 DEFERRED INFLOW OF RESOURCES: Deferred Inflow related to Pensions 382,309 208,328 291,238 43,908 44,532 970,315 336,564 NET POSITION:
Net Investment in Capital Assets: 64,367,289 65,730,228 47,381,266 84,687 10,041,312 187,604,782 6,669,446 Restricted for: Debt Service 2,486,597 663,450 1,199,716 --4,349,763 -Capital
Projects -799 ---799 -Rate Stabilization --413,778 --413,778 -Unrestricted 3,928,156 14,316,084 10,344,581 3,242,583 649,436 32,480,840 12,244,447 Total Net Position $ 70,782,042 $ 80,710,561
$ 59,339,341 $ 3,327,270 $ 10,690,748 $ 224,849,962 $ 18,913,893 Adjustment to reflect the consolidation of internal service funds related to enterprise funds 493,822 Net position of
business-type activities $ 225,343,784 The notes to the basic financial statements are an integral part of this statement. City of Auburn, Washington STATEMENT OF NET POSITION PROPRIETARY
FUNDS December 31, 2015Enterprise Funds
City of Auburn: 2015 CAFR Basic Financial Statements 4 9 Governmental Activities Non-Major Total Sanitary Storm Solid Enterprise Enterprise Internal Water Sewer Drainage Waste Funds
Funds Service Funds OPERATING REVENUES: Charges of Services $ 14,225,395 $ 24,325,029 $ 9,255,944 $ 13,770,806 $ 1,117,625 $ 62,694,799 $ 13,057,948 Other Operating Revenue ----696,340
696,340 211,031 Total Operating Revenue 14,225,395 24,325,029 9,255,944 13,770,806 1,813,965 63,391,139 13,268,979 OPERATING EXPENSES: Operations & Maintenance 5,724,361 17,653,404 2,193,960
11,222,806 301,153 37,095,684 9,427,887 Administration 2,773,952 2,185,454 3,190,200 671,596 688,285 9,509,487 818,370 Depreciation /Amortization 2,934,694 2,120,150 1,663,208 18,819
518,827 7,255,698 1,551,966 Other Operating Expenses 1,650,719 1,970,380 838,769 994,611 12,906 5,467,385 -Total Operating Expenses 13,083,726 23,929,388 7,886,137 12,907,832 1,521,171
59,328,254 11,798,223 Operating Income (Loss) 1,141,669 395,641 1,369,807 862,974 292,794 4,062,885 1,470,756 NON-OPERATING REVENUE (EXPENSE) : ` Interest Revenue 19,431 21,118 24,258
3,908 1,845 70,560 20,118 Other Non-Operating Revenue 241,238 90,236 1,470,510 106,566 69,571 1,978,121 110,986 Gain on Sale of Capital Assets --10,000 --10,000 (30,466) Interest Expense
(606,837) (277,923) (153,180) --(1,037,940) (2,951) Other Non-Operating Expenses (966) (1,444) (269,242) -(41,834) (313,486) -Total Non-Operating Revenue (Expense) (347,134) (168,013)
1,082,346 110,474 29,582 707,255 97,687 Income (Loss) Before Contributions & Transfers 794,535 227,628 2,452,153 973,448 322,376 4,770,140 1,568,443 Capital Contribution 1,999,057 1,572,756
2,250,044 --5,821,857 -Transfers In (Note 5) --526,059 -30,000 556,059 500,919 Transfers Out (Note 5) (203,642) (190,371) (198,781) --(592,794) (896,388) Change in Net Position 2,589,950
1,610,013 5,029,475 973,448 352,376 10,555,262 1,172,974 Net Position, January 1, as Previosly Reported 71,320,494 80,384,818 55,862,809 2,560,449 10,532,808 220,661,378 19,932,921 Change
in Accounting Principle (3,128,402) (1,284,270) (1,552,943) (206,627) (194,436) (6,366,678) (2,192,002) Net Position, January 1 restated 68,192,092 79,100,548 54,309,866 2,353,822 10,338,372
214,294,700 17,740,919 Net Position, December 31 $ 70,782,042 $ 80,710,561 $ 59,339,341 $ 3,327,270 $ 10,690,748 $ 224,849,962 $ 18,913,893 Change in net position from this statement
4,188,584 Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds 216,594 Change in net position of business-type activities $ 4,405,178
The notes to the basic financial statements are an integral part of this statement. City of Auburn, Washington STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION PROPRIETARY
FUNDS For the Year Ended December 31, 2015 Enterprise Funds
City of Auburn: 2015 CAFR Basic Financial Statements 5 0 Page 1 of 2 Government Non Major Activities Sanitary Storm Solid Enterprise Internal Water Sewer Drainage Waste Funds Total Service
Funds CASH FLOWS FROM OPERATING ACTIVITIES: Cash Received from Users $ 14,276,698 $ 24,277,913 $ 9,268,774 $ 13,755,430 $ 1,832,457 $ 63,411,272 $ 13,282,259 Cash Paid to Suppliers for
Goods & Services (4,534,225) (17,473,056) (2,413,647) (11,307,645) (789,344) (36,517,917) (6,283,708) Cash Paid for Taxes (1,650,719) (1,970,380) (838,769) (994,611) (12,906) (5,467,385)
(3,318) Cash Paid to Employees (3,539,354) (2,389,453) (3,488,998) (578,362) (663,988) (10,660,155) (4,098,075) Other Cash Received 56,045 ---151 56,196 138 Net Cash Provided (Used)
by Operating Activities 4,608,445 2,445,024 2,527,360 874,812 366,370 10,822,011 2,897,296 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES: Interfund Loan Payable ----(16,605) (16,605)
-Operating Grant 60,181 68,640 322,363 88,685 64,819 604,688 735 Other Non-Operating Revenue -(142,057) 100,961 -4,380 (36,716) (84,106) Transfers In --526,059 -30,000 556,059 500,919
Transfers Out (203,642) (190,371) (198,781) --(592,794) (896,388) Net Cash Provided (Used) by Noncapital Financing Activities (143,461) (263,788) 750,602 88,685 82,594 514,632 (478,840)
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES: Proceeds from Sale of Equipment --10,000 --10,000 116,828 Purchase of Capital Assets (8,096,678) (2,384,304) (6,579,745) -(365,571)
(17,426,298) (2,027,550) Contributed Capital 567,132 437,842 406,699 --1,411,673 -Capital Grants --1,139,237 -(20,479) 1,118,758 -Proceeds from Other Governments 158,603 207,203 ---365,806
-Proceeds from Insurance Settlement 26,589 ----26,589 106,842 Principal Payment on Debt (1,382,136) (436,790) (412,167) -(135,000) (2,366,093) 185,592 Interest Payment on Debt (1,147,836)
(291,493) 35,253 -(36,675) (1,440,751) (2,951) Debt Proceeds 850,402 ----850,402 (2,951) Net Cash Provided (Used) for Capital and Related Financing Activities (9,023,924) (2,467,542)
(5,400,723) -(557,725) (17,449,914) (1,624,190) CASH FLOW FROM INVESTING ACTIVITIES: Proceeds from Sale of Investments --1,000,146 --1,000,146 -Interest Received 19,431 21,118 24,258
3,908 1,845 70,560 20,118 Net Cash Provided (Used) in Investing Activities 19,431 21,118 1,024,404 3,908 1,845 1,070,706 20,118 Net Increase (Decrease) in Cash and Cash Equivalents (4,539,509)
(265,188) (1,098,357) 967,405 (106,916) (5,042,565) 817,335 Cash and Cash Equivalents -Beginning of Year 15,850,033 15,472,214 15,290,621 2,138,335 1,303,115 50,054,318 14,235,505 Cash
and Cash Equivalents -End of Year $ 11,310,524 $ 15,207,026 $ 14,192,264 $ 3,105,740 $ 1,196,199 $ 45,011,753 $ 15,052,840 CASH AT END OF YEAR CONSISTS OF: Cash and Cash Equivalents
7,002,144 14,160,851 11,232,388 3,105,740 1,125,279 36,626,402 15,052,840 Restricted Cash -Bond Payments 1,764,431 445,929 826,055 --3,036,415 -Restricted Cash -Customer Deposits 28,301
83,272 3,422 -70,920 185,915 -Restricted Cash -Other 2,515,648 516,973 2,130,399 --5,163,020 -Total Cash $ 11,310,524 $ 15,207,025 $ 14,192,264 $ 3,105,740 $ 1,196,199 $ 45,011,752 $
15,052,840 The notes to the basic financial statements are an integral part of this statement. City of Auburn, Washington STATEMENT OF CASH FLOWS PROPRIETARY FUNDS For the Fiscal Year
Ended December 31, 2015
City of Auburn: 2015 CAFR Basic Financial Statements 5 1 Page 2 of 2 Government Non Major Activities Sanitary Storm Solid Enterprise Internal Water Sewer Drainage Waste Funds Total Service
Funds RECONCILIATION OF NET OPERATING INCOME TO NEW CASH PROVIDED BY OPERATING ACTIVITIES Operating Income (Loss) $ 1,141,669 $ 395,641 $ 1,369,807 $ 862,974 $ 292,794 $ 4,062,885 $
1,470,756 ADJUSTMENTS TO RECONCILE OPERATING INCOME TO NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES: Depreciation 2,934,694 2,120,150 1,663,208 18,819 518,827 7,255,698 1,551,966
Asset (Increases) Decreases: Accounts Receivable 95,142 (47,116) 12,830 (15,376) -45,480 13,418 Miscellaneous A/R Revenue -(1,451) --151 (1,300) -Inventory 836 (1,208) (368) -2,342 1,602
(17,096) Liability Increases (Decreases): Accounts & Vouchers Payable 298,520 (16,459) (242,177) 170 (467,268) (427,214) (83,053) Deposits Payable 16,342 ---18,492 34,834 -Wages & Benefits
Payable (23,931) (24,982) (17,322) 6,789 (1,493) (60,939) (46,274) Compensated Absences Payable 16,442 20,449 10,625 1,436 2,525 51,477 7,579 A/P Related to Capital Asset Acquisition
128,731 -(269,243) --(140,512) -Total Adjustments 3,466,776 2,049,383 1,157,553 11,838 73,576 6,759,126 1,426,540 Net Cash Provided (Used) by Operating Activities $ 4,608,445 $ 2,445,024
$ 2,527,360 $ 874,812 $ 366,370 $ 10,822,011 $ 2,897,296 SCHEDULE OF NONCASH INVESTING, CAPITAL AND FINANCING ACTIVITIES Capital Assets Acquired by Contributed Capital 1,431,925 1,134,914
1,843,345 --4,410,184 -Total Non Cash Investing, Capital and Financing Activities $ 1,431,925 $ 1,134,914 $ 1,843,345 $ -$ -$ 4,410,184 $ -The notes to the basic financial statements
are an integral part of this statement. PROPRIETARY FUNDS City of Auburn, Washington STATEMENT OF CASH FLOWS For the Fiscal Year Ended December 31, 2015
City of Auburn: 2015 CAFR Basic Financial Statements 5 2
City of Auburn: 2015 CAFR Basic Financial Statements 5 3 FIDUCIARY FUNDS Fiduciary funds are used to account for assets held by the City of Auburn as a trustee or agent for various individuals,
private organizations, and other governmental units. The Fire Relief and Pension Fund is accounted for on an accrual basis. The agency fund is custodial in nature; therefore, no annual
budget is adopted. TRUST FUNDS The Fire Relief and Pension Fund This fund accounts for the payment of administrative costs and benefits for retired firefighters (and beneficiaries) who
were employed prior to March 1, 1970. Primary revenue sources are general property tax allocations, fire insurance premium tax, and investment interest, in accordance with actuarial
recommendations. AGENCY FUNDS The Agency Fund This fund accounts for the funds over which the City is strictly a short-term custodian.
City of Auburn: 2015 CAFR Basic Financial Statements 5 4 Fire Relief Pension Agency Trust Fund Fund ASSETS: Cash and Cash Equivalents $ 2,447,214 $ 410,406 Investments 71,695 -Receivables:
Customer Accounts -31,479 Interest 655 -Total Assets 2,519,564 441,885 LIABILITIES: Current Payables 7,007 372,230 Due to Other Governmental Units -69,655 Total Liabilities 7,007 441,885
NET POSITION Held in Trust for Pension Benefits and Other Purposes $ 2,512,557 $ -The notes to the financial statements are an integral part of this statement. City of Auburn, Washington
STATEMENT OF FIDUCIARY NET POSITION FIDUCIARY FUNDS December 31, 2015
City of Auburn: 2015 CAFR Basic Financial Statements 5 5 Fire Relief Pension Trust fund ADDITIONS: Contributions: Fire Insurance Premiums $ 75,702 Investment Earnings 5,065 Total Additions
80,767 DEDUCTIONS: Benefit Payments 157,936 Professional Services 6,660 Administrative Expenses 13,076 Total Deductions 177,672 Change in Net Postion (96,905) Net Position -Beginning
2,609,462 Net Position -Ending $ 2,512,557 The notes to the financial statements are an integral part of this statement. City of Auburn, Washington STATEMENT OF CHANGES IN FIDUCIARY
NET POSTION FIDUCIARY FUNDS For the Year Ended December 31, 2015
City of Auburn: 2015 CAFR Basic Financial Statements 5 6
City of Auburn: 2015 CAFR Notes to the Financial Statements 57 City of Auburn NOTES TO THE FINANCIAL STATEMENTS December 31, 2015 Note 1 – Summary of Significant Accounting Policies
........................................................................................ 58 A. Reporting Entity ........................................................................................................................
58 B. Basic Financial Statements .......................................................................................................... 59 C. Measurement Focus, Basis of Accounting,
and Basis of Presentation ............................................ 59 D. Budget and Budgetary Accounting ..............................................................................................
62 E. Assets, Liabilities and Fund Balance ............................................................................................. 63 1. Deposits and Investments .....................................................................................................
63 2. Receivables .......................................................................................................................... 64 3. Interfund Receivables and Payables
...................................................................................... 64 4. Amounts Due From Other Governmental Units....................................................................
64 5. Inventories and Prepaid Expenses ......................................................................................... 64 6. Restricted Assets ..................................................................................................................
64 7. Interfund Transactions ......................................................................................................... 64 8. Capital Assets ......................................................................................................................
65 9. Pensions .............................................................................................................................. 65 10. Deferred Outflows/Inflows of Resources
.............................................................................. 65 11. Compensated Absences ........................................................................................................
66 12. Unearned Revenues ............................................................................................................. 66 13. Fund Balance Components – Proprietary Funds
.................................................................... 66 14. Fund Balance Components – Governmental Funds ...............................................................
66 F. Revenues, Expenditures and Expenses ......................................................................................... 68 G. Estimates ..................................................................................................................................
68 Note 2 – Stewardship, Compliance and Accountability .................................................................................... 68 Note 3 – Deposits and Investments .................................................................................................................
68 Note 4 – Property Taxes .................................................................................................................................71 Note 5 – Interfund Activity
............................................................................................................................. 73 Note 6 – Due From Other Governmental Units...............................................................................................
75 Note 7 – Capital Assets and Depreciation ........................................................................................................ 76 Note 8 – Capital Lease Obligation
................................................................................................................... 77 Note 9 – Long-Term Liabilities ........................................................................................................................
78 Note 10 – Pension Plans .................................................................................................................................. 82 Note 11 – Other Post-Employment
Benefits ...................................................................................................... 92 Note 12 – Association of Washington Cities Employment Benefit Trust
.............................................................. 93 Note 13 – Construction Commitments ..............................................................................................................
95 Note 14 – Cemetery Endowed Care Fund ......................................................................................................... 95 Note 15 – Joint Ventures /Related
Party .......................................................................................................... 95 Note 16 – Jointly Governed Organization /Related Party .................................................................................
99 Note 17 – Contingencies and Litigations............................................................................................................ 99 Note 18 – Risk Management and
Insurance....................................................................................................... 99 Note 19 – Subsequent Events ..........................................................................................................................
100
City of Auburn: 2015 CAFR Notes to the Financial Statements 58 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The City of Auburn, King County, Washington, was incorporated in 1891.
It operates under the laws of the State of Washington applicable to a Non-Charter Code City under a Mayor/Council form of government. A full-time mayor and seven part-time council members
administer Auburn, all elected at-large to four-year terms. The City provides a range of municipal services authorized by state law, including water services, sanitary sewer collection,
solid waste collection, storm drainage, a general aviation airport, a municipal cemetery and a municipal golf course. The accounting and reporting policies of the City of Auburn, which
conform to Generally Accepted Accounting Principles (GAAP) for governments, are regulated by the Washington State Auditor’s Office. The 2015 financial statements have been presented
in accordance with the following new Governmental Accounting Standards Board (GASB) Statements: a. GASB Statement No. 68 – Accounting and Financial Reporting for Pensions; an amendment
of GASB Statement No. 27. The statement replaces the requirements of Statement No. 27 and Statement No. 50 related to the pension plans that are administered through trusts or equivalent
arrangements. The City’s significant accounting policies are described in the following notes. A. Reporting Entity In accordance with the criteria set forth in Statement No. 14 of the
Governmental Accounting Standards Board (GASB) the City’s Comprehensive Annual Financial Report (CAFR) includes all funds controlled by the City. Joint Ventures -Based on the criteria
of Governmental Accounting Standards Board (GASB) Statement No. 14 as modified by GASB Statements No. 34 and 61, the Valley Communications Center and South Correctional Entity Facility
(SCORE) are included in the accompanying government-wide statement of net position as a joint venture. (Please refer to Notes 9 and 15). Jointly Governed Organizations -The cities of
Auburn, Algona and Pacific formed the Valley Regional Fire Authority (VRFA) effective January 1, 2007. The VRFA is a separate municipal corporation of the State of Washington, organized
as a regional fire protection service authority under RCW 52.26. The VRFA is not financially accountable to the member cities, none of the participating cities has an ongoing financial
interest in the VRFA, and the VRFA is not financially dependent upon any member city. The VRFA imposes its own property tax levy and fire benefit charge. As such, the VRFA is not included
in the City of Auburn’s financial reporting entity. The government-wide financial statements consist of the government-wide statement of net position and the government-wide statement
of activities.
City of Auburn: 2015 CAFR Notes to the Financial Statements 59 B. Basic Financial Statements The City’s basic financial statements consist of government-wide financial statements and
fund financial statements. The government-wide financial statements, which include the statement of net position and the statement of activities, summarize the entire operation of the
City. The governmental fund financial statements, which include the balance sheet, statement of revenues, expenditures and changes in fund balance, and statements of revenues, expenditures
and changes in fund balance budget and actual, provide a more detailed level of reporting. The proprietary fund financial statements, which include statement of net position, statement
of revenues, expenses, and changes in net position and statement of cash flows, provide a more detailed level of reporting. The government-wide financial statements report information
on all of the non-fiduciary activities of the City. For the most part, the effect of interfund activity has been eliminated from these statements. Because governmental activities are
normally supported by taxes and intergovernmental revenue, while business-type activities are generally supported through user fees and charges, governmental activities are reported
separately from business-type activities on all government-wide financial statements. The Statement of Net Position reports the assets, deferred outflows of resources, and liabilities
of the primary government. The net position section of this statement represents the residual amount of assets and their associated liabilities, and deferred outflow of resources. The
net position section is divided into three categories. The first category is Net Investment in Capital Assets, which includes all capital assets, net of accumulated depreciation, less
any debt outstanding associated with the assets. Capital assets cannot readily be sold and converted into cash. The second category is Restricted Net Position, which includes those assets,
net of their related debt that have a constraint placed on their use. The constraints are either: 1) externally imposed by creditors, such as through debt covenants, grantors, contributors,
or laws and regulations of other governments, or 2) imposed by law through constitutional provisions or enabling legislation. The final section is Unrestricted Net Position, and this
represents net position that generally can be used for any purpose. However, they are not necessarily in a spendable form, such as cash. The statement of activities demonstrates the
degree to which the direct expenses of various functions and activities of the City are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific
function or activity. The City’s policy is to allocate indirect costs to a specific function or segment. Program revenues include 1) charges to customers or applicants who purchase,
use, or directly benefit from goods, services or privileges provided by a function or activity, and 2) grants and contributions that are restricted to meeting the operational or capital
requirements of a particular function or activity. Taxes and other items that are not properly included among function or activity revenues are instead reported as general revenues.
Separate financial statements are included for government funds, proprietary funds, and fiduciary funds, even though fiduciary funds are excluded from the government-wide financial statements.
Major individual governmental funds and major individual enterprise funds are reported in separate columns in the fund financial statements. C. Measurement Focus, Basis of Accounting
and Basis of Presentation The accounts of the City are organized on the basis of funds, each of which is considered a separate accounting entity. Each fund is accounted for with a separate
set of self-balancing accounts that comprise its assets, liabilities, fund balance/equity, revenue, and expenditures or expenses, as appropriate. The City resources are allocated to,
and accounted for in, individual funds according to the purpose for which they are spent and how they are controlled. The basis of accounting refers to the timing of when revenues and
expenditures or expenses are recognized in the accounts and reported in the financial statements. The government-wide financial statements are reported using the economic resources measurement
focus and the accrual basis of accounting, as are the proprietary and pension trust fund financial statements. Governmental fund
City of Auburn: 2015 CAFR Notes to the Financial Statements 60 financial statements are reported using the current financial resources measurement focus and the modified accrual basis
of accounting. The modified accrual basis of accounting is followed in all governmental and permanent funds of the City. Under the modified accrual basis of accounting, revenues are
recognized when measurable and available. Revenues are generally considered available if they are collected within the current period or soon enough thereafter (30 days) to pay current
liabilities. For derived tax revenues, such as sales tax and utility business and occupation taxes, revenues are recognized in the period when the underlying exchange has occurred. For
imposed non-exchange taxes, such as property taxes, revenues are recognized when the use of resources is permitted, or when resources are available. Grant revenue is recognized in the
period in which the expenditure occurs and the eligibility requirements have been met. Non-exchange transactions, such as contributions, are recognized when the donation eligibility
requirements have been satisfied. Those specific major revenue sources accrued are: Property Taxes – King County and Pierce County collect property taxes and remit to the City daily
or monthly. December collections by each County, remitted in January, are recognized as revenues in current year even though received in the subsequent year since they are considered
to be measurable and available. Property taxes remaining uncollected at year-end are reported as “unearned revenue”, since they are not considered to be available. Sales Tax Revenues
– The State of Washington collects all sales taxes. Auburn’s portion is remitted to the City by the State monthly. The sales tax received in January is recognized as revenue in current
year even though received in the subsequent year because of when the underlying transaction occurred and the resources are considered to be measurable and available. Grant Revenues –
On cost reimbursement grants, grant revenue is recognized when the eligible expenditure is incurred. Under the modified accrual basis, expenditures are recorded when the fund liability
is incurred, except for the unmatured interest and principal on general long-term debt, which is recognized when due, and for compensated absences which are recorded as expenditures
when liquidated from expendable available fund resources. Purchases of capital assets from governmental funds are reported as expenditures during the year incurred and the asset is capitalized
and reported on the government-wide statement of net position. Long-term liabilities, including compensated absences not currently due and payable, are also reported on the government-wide
statement of net position. The accrual basis of accounting is followed in all proprietary, agency, and pension trust funds. Under the accrual basis of accounting, revenues are recognized
when earned and expenses are recorded when incurred. The three broad fund categories and nine fund types presented in this report are described below: 1. Governmental Fund Types All
governmental funds are accounted for on a spending or “financial flow” measurement focus. This means that only current assets and current liabilities and deferred inflow of resources
generally are included on their balance sheets. Their reported fund balance is considered a measure of “available spendable resources”. Governmental fund operating statements focus on
measuring cash flows rather than net income; they present increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current assets.
a. General fund – This fund is used to account for all financial resources and transactions of the City not accounted for in another fund, as required. The general fund is always considered
a major fund. b. Special Revenue funds – These funds are used to account for the proceeds of specific revenue sources (other than major capital projects) that are legally restricted
to expenditures for specified purposes. One
City of Auburn: 2015 CAFR Notes to the Financial Statements 61 special revenue fund is considered major: the arterial street fund. This fund is supported by the State of Washington’s
motor vehicle fuel tax and by various grants and is used for major street construction. c. Debt Service funds – These funds account for the accumulation of resources for, and the payment
of, general long-term and special assessment debt principal, interest, and related costs. These funds also include the local improvement districts (LID) guarantee fund which provides
financial security for outstanding LID bonds. No debt service funds are considered major funds and are reported within the “Other Governmental Funds”. d. Capital Projects funds – These
funds are used to account for financial resources to be used for the acquisition or construction of major capital facilities other than those financed by proprietary funds. One capital
project fund is considered major: the capital improvement projects fund. This fund accounts for major capital acquisitions, and street and parks construction projects. e. Permanent funds
– These funds are used to account for resources that are legally restricted to the extent that only earnings, and not principal, may be used for purposes of supporting a specific City
program. The city has one permanent fund, Cemetery Endowment. 2. Proprietary Fund Types Financial statements for proprietary funds use the economic resources measurement focus and the
accrual basis of accounting. This means that all assets and all liabilities (whether current or non-current) associated with their activity are included on their Statement of Net Position.
Under the accrual basis of accounting, revenues are recognized when earned and expenses are recorded when incurred. The economic resources measurement focus is applied in the determination
of financial position, net income, and cash flow. Proprietary funds distinguish operating revenues and expenses from non-operating items. Operating revenues and expenses generally result
from providing services and producing and delivering goods in connection with a proprietary fund’s principal ongoing operations. The principal operating revenue of the City’s utility
funds, other enterprise funds, and internal service funds are charges to customers for sales and services, vehicle and computer replacement, and insurance. Operating expenses for enterprise
funds and internal service funds include the cost of sales and services, administrative expenses, taxes, and depreciation on capital assets. All revenues and expenses not meeting this
definition are reported as non-operating revenues and expenses, or as capital contributions. Substantially all proprietary fund operating revenues are used as security for revenue bonds.
GASB Statement No. 62 Codification of Accounting and Financial Reporting Guidance Contained in Pre-November 30, 1989 FASB and AICPA Pronouncements, provides a codification of private-sector
standards of accounting and financial reporting issued prior to December 1, 1989, to be followed in the financial statements of proprietary fund types. The City has adopted provisions
of GASB Statement No. 62. a. Enterprise funds – These funds are used to account for services to the general public where all or most of the costs, including depreciation, are to be financed
or recovered from users of such services. Four enterprise funds are considered major funds. Utilities provided to residents are accounted for in the water fund, sanitary sewer fund,
storm drainage fund, and the solid waste fund. b. Internal Service funds – These funds are used to account for the financing of goods and services provided to other funds, departments,
or governments on a cost reimbursement basis. The City uses internal service funds to account for its fleet of vehicles, its maintenance and operation of facilities, the City-wide provision
of computer hardware and software services, the cost of employees affected by an occupational injury or illness, and its insurance premiums.
City of Auburn: 2015 CAFR Notes to the Financial Statements 62 3. Fiduciary Fund Types Fiduciary funds are used to account for assets held by the City in a trustee capacity or as an
agent for individuals, private organizations, other governments, and/or other funds. These include a Fire Relief and Pension Trust Fund and an Agency Fund. Each fiduciary fund is classified
for accounting measurement purposes as either a governmental fund or a proprietary fund. a. Fire Relief and Pension Fund -This fund is accounted for on the accrual basis in essentially
the same manner as proprietary funds since capital management is critical. Based on actuarial recommendations, there are no employee contributions or employer contributions to the Fire
Relief and Pension Plan. Pension benefits are recognized when due; plan administration costs are also recognized when incurred in this fund. b. Agency Fund – This fund is custodial in
nature on behalf of another individual, entity, or government and does not involve a measurement of results of operations. D. Budget and Budgetary Accounting The City of Auburn budgets
in accordance with the Revised Code of Washington (RCW) 35A.33 for the general and special revenue funds. For governmental funds, there are no substantial differences between the budgetary
basis and generally accepted accounting principles. Budgetary accounts are integrated in fund ledgers for all budgeted funds, but the financial statements include budgetary comparisons
for the biennial budgeted governmental funds only. Budgets established for proprietary and trust funds are “management budgets”, and are not legally required to be reported and, as such,
are not reported in the CAFR. The biennial budget is proposed by the Mayor and adopted by the City Council with legal budgetary control at the fund level; i.e., expenditures and other
financing sources may not exceed budgeted appropriations at the fund level. The Mayor may authorize transfers within funds; however, the City Council must approve by ordinance any amendments
that increase the total for the fund. Any unexpended appropriation balances lapse at the end of the fiscal year. The City prepares the biennial budget on the modified accrual basis,
which conforms to Generally Accepted Accounting Principles (GAAP). The CAFR includes budgetary comparisons for those governmental funds with legally adopted budgets. Budget amounts include
the adopted current year budget appropriations and any revisions made during the year. State law establishes the budget process and the time limits under which a budget must be developed.
The City follows the procedures outlined below to establish its biennial budget: a. Sixty days prior to each odd numbered fiscal year, the Mayor submits to the City Council a preliminary
budget for the biennium commencing the following January 1st. The operating budget includes proposed expenditures and funding sources. b. Public hearings are conducted at the Auburn
City Council Meetings to obtain taxpayer comments. c. Prior to December 31st, the budget is legally enacted through passage of an ordinance. d. The final operating budget as adopted
is published and distributed after adoption. Copies of the budget are made available to the public.
City of Auburn: 2015 CAFR Notes to the Financial Statements 63 Original Final Budget Revisions Budget Governmental Funds General Fund $ 62,813,261 $ 2,248,364 $ 65,061,625 Total Governmental
Funds 62,813,261 2 ,248,364 65,061,625 Special Revenue Funds: Local Street $ 2 ,600,000 $ 770,053 $ 3,370,053 Arterial Street 14,354,730 6,731,789 2 1,086,519 Hotel/Motel Tax 86,000
20,000 106,000 Arterial Street Preservation 2,109,999 3,660,756 5,770,755 Drug Forfeiture Fund 304,448 -304,448 Housing and Community Development 440,000 -440,000 Recreation Trails ---Business
Improvement Area 55,000 -55,000 Cumulative Reserve 6 58,000 -6 58,000 Mitigation Fees 3 ,586,423 371,733 3,958,156 Total Special Revenue Funds 24,194,600 11,554,331 35,748,931 Total
Budgeted Funds $ 87,007,861 $ 13,802,695 $ 100,810,556 ORIGINAL AND SUPPLEMENTAL APPROPRIATIONS E. Assets, Liabilities, and Fund Balance 1. Deposits and Investments It is the City’s
policy to invest all temporary cash surplus. At December 31, 2015, the Washington State Local Government Investment Pool (LGIP) was holding $102,163,513 in short-term investments. This
amount is classified on the Statement of Net Position as cash and cash equivalents. The interest on these investments is prorated to the various funds based upon ownership of investments.
For purposes of the Statement of Cash Flows, cash and cash equivalents includes cash on deposit with financial institutions in both demand and time deposit accounts, and amounts invested
in the Local Government Investment Pool, administered by the State Treasurer’s Office because it is operated in a manner consistent with a Securities and Exchange Commission’s Rule 2a-7
of the Investment Company Act of 1940. The State Finance Committee is the administrator of the statute that created the pool and adopts appropriate rules. The State Treasurer’s Office
is responsible for establishing the investment policy for the pool and reviews it annually. Any proposed changes are reviewed by the LGIP Advisory Committee. The terms of the policy
are designed to ensure the safety and liquidity of the funds deposited in the LGIP. The City, by state law, is authorized to purchase certificates of deposit issued by Washington State
depositories that participate in Washington Public Deposit Protection Commission (WPDPC), U.S. Treasury and Agency securities, banker’s acceptances, and repurchase agreements. The City
purchases repurchase agreements only from institutions that use authorized securities for collateral. The City of Auburn also has signed a “master repurchase agreement” with its primary
bank, Key Bank. For purposes of the statement of cash flows, all proprietary fund types and similar trust funds consider all highly liquid investments (including restricted assets) with
maturity of three months or less when purchased to be cash equivalents.
City of Auburn: 2015 CAFR Notes to the Financial Statements 64 Investments are recorded at fair value. Adjustments are made to cost for investments amortized over the period to maturity
in accordance with GASB Statement No. 31. The investment in the state investment pool is valued at the pool’s share price. 2. Receivables Taxes receivable consist of property taxes (see
Note 4). Accrued interest receivable consists of amounts earned on notes and contracts at the end of the year. Customer accounts receivable consist of amounts owed by private individuals
or organizations for goods and services provided. Uncollectible amounts are considered immaterial and the direct write-off method is used. Special assessments are levied against certain
property owners and become liens against the property benefited by the improvement. Special assessments receivable consist of current assessments, which are due within one year, delinquent
assessments remaining unpaid after the due date, and unearned, uncollected assessments, which have been levied, but are not due within one year. Other receivables include utility taxes
due from private organizations and customer accounts receivable, which consist of amounts owed from private individuals or organizations for goods and services, including amounts owed
for which billings have not been prepared. Notes and contracts receivable consist of amounts owed on open accounts from private individuals or organizations for goods and services rendered.
3. Interfund Receivables and Payables These accounts include all interfund receivables and payables. A separate schedule of interfund activity is furnished in Note 5. 4. Amounts Due
From Other Governmental Units This account includes amounts due from other governments for grants, entitlements and charges for services. A schedule by fund of amounts due from other
governmental units is presented in Note 6. 5. Inventories and Prepaid Expenses Government fund types recognize the cost of inventory items and prepaid expenses (expenses that benefit
future periods) as expenditures in the year of purchase. In governmental funds, materials and supplies remaining at yearend are immaterial and not included in inventory. In enterprise
and internal service funds, inventories are valued at cost using the weighted average costing method. 6. Restricted Assets In accordance with the utility bond ordinances, state law,
or other agreements, separate restricted assets have been established. These assets are restricted for specific purposes including the establishment of bond reserve funds, utility rate
stabilization funds, financing the ongoing capital improvement programs of the various utilities, customer deposits, nonexpendable permanent cemetery endowment and other purposes. 7.
Interfund Transactions During the course of normal operations, the City has numerous transactions between City funds. Interfund services provided and used, such as buying goods and services,
are recorded as revenues in the internal services funds and expenditures in the paying fund. Transfers between funds are included as “other financing sources or uses” in governmental
fund types and as other items in proprietary fund types.
City of Auburn: 2015 CAFR Notes to the Financial Statements 65 8. Capital Assets Capital assets are recorded at historical cost when known or at estimated historical cost when actual
costs are not known. Infrastructure, such as roads, bridges and water mains, is reported in the applicable government or business-type activities columns in the government-wide statement
of net position. All infrastructure costs have been calculated and are reported. Government-donated capital assets are stated at their market value on the date donated. Major outlays
for capital assets and improvements are capitalized as projects are constructed. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend
asset lives are not capitalized. For proprietary funds, interest costs incurred to bring certain assets to the condition and location necessary for their intended use are capitalized
as part of the historical cost of acquiring the assets. Additionally, in situations involving the acquisition of certain assets financed with the proceeds of tax-exempt borrowing, any
interest earned on related interest-bearing investment from such proceeds are offset against the related interest costs in determining either capitalization rates or limitations on the
amount of interest costs to be capitalized. Capital assets of enterprise and internal service funds are recorded at cost. The capital assets of the airport are carried at cost and include
those acquired with capital contributed by the Federal Government. Capital assets of all funds are depreciated, and are calculated on the straight-line method using estimated lives as
follows: Asset Capitalization Threshold Depreciation Method Estimated Useful Life Building $5,000 Straight-line 20 -50 years Other Improvements $5,000 Straight-line 10 -50 years Equipment/Machinery
$5,000 Straight-line 2 -20 years Infrastructure $5,000 Straight-line 25 -50 years Utility Plant $5,000 Straight-Line 25 -50 years At the inception of capital leases at the government
fund reporting level, the net present value of future minimum lease payments allocable to the capital asset is reflected as expenditures and an “other financing source” of an equal amount.
9. Pensions For purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information
about the fiduciary net position of all state sponsored pension plans and additions to/deductions from those plans’ fiduciary net position have been determined on the same basis as they
are reported by the Washington State Department of Retirement Systems. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable
in accordance with the benefit terms. Investments are reported at fair value. 10. Deferred Outflows/Inflows of Resources Deferred outflow of resources is the consumption of net position
by the government that is applicable to a future reporting period. The deferred amount on special assessments consist of special assessments not due within one year is reported as deferred
outflows of resources in the governmental funds. Deferred inflow of resources is acquisition of net position by the government that is applicable to a future reporting period. The difference
between the carrying amount of redeemed and/or defeased debt and its reacquisition price is the deferred amount on refunding and is amortized over the remaining life of the debt, or
the life of the new debt, whichever is shorter. Deferred outflows and deferred inflows of resources related to pensions are reported for differences between expected and actual experience,
changes of assumptions, and differences between projected and actual returns on pension plan investments.
City of Auburn: 2015 CAFR Notes to the Financial Statements 66 11. Compensated Absences City employees accrue vacation leave at a variable rate based on years of service. In general,
employees are allowed to accumulate vacation leave up to what would be earned in two years. Unaffiliated employees accrue sick leave at the rate of eight hours per month up to 960 hours.
Sick leave accumulations over 960 hours at year-end are paid at 25%. Sick leave is not paid upon termination except in some instances upon separation in good standing, where employees
hired before 12/31/1984 can be reimbursed at their current rate for unused sick leave up to a maximum of 960 hours, at a rate based on years of service. The City’s union contracts have
varied sick leave accruals and payout options. In general, non-exempt employees can accrue up to 80 hours of compensatory time. The City reports compensated absences as liabilities in
the government-wide statement of net position and in proprietary funds. Vacation, compensatory time, and sick leave are calculated separately for each employee using the rules described
above. The reporting format is in compliance with GASB statement No. 16. Governmental funds recognize expenditures for vacation, sick, and compensatory time when paid. Proprietary and
pension trust funds recognize the expense and accrue a liability for vacation and sick leave pay as the leave is earned. All compensated absence liabilities include salary-related payments,
where applicable. 12. Unearned Revenues This account reflects the amounts of taxes and other long-term receivables for which the revenue recognition criteria have not been met. It also
reflects prepayments on accounts and grants received in advance. 13. Fund Balance Components – Proprietary Funds In proprietary funds, net position is generally restricted in connection
with restricted assets or for legal segregation. These restrictions are identified on the statement of net position of each fund type. The City holds and administers a Utility System
Rate Stabilization Fund. The City may, by ordinance, withdraw from the Rate Stabilization Fund for inclusion in the net revenue of the Utility System at any time for any current fiscal
year of the Utility System, except that the total amount withdrawn from the Rate Stabilization Fund in any fiscal year may not exceed the total debt service of the Utility System in
that year. 14. Fund Balance Components – Governmental Funds Fund balance is presented in the governmental fund financial statements and represents the difference between assets and liabilities
reported within the governmental fund. Beginning with the most restrictive constraints, fund balance amounts are reported in the following categories: a. Nonspendable fund balance includes
items that cannot be spent. This includes activity that is not in a spendable form (investments, prepaid amounts, long-term portion of loans/notes receivable, or property held for resale
unless the proceeds are restricted, committed or assigned) and activity that is legally or contractually required to remain intact. b. Restricted fund balance is externally (outside
the City) enforceable limitations imposed by creditors, grantors, contributors, laws and regulations of other governments, or laws through constitutional provisions or enabling legislation.
c. Committed fund balance is self-imposed limitations imposed at the highest level of decision making authority, namely, Mayor and City Council. Mayor and City Council approval by ordinance
is required to commit, modify or rescind resources.
City of Auburn: 2015 CAFR Notes to the Financial Statements 67 d. Assigned fund balance includes amounts that are constrained by the City’s intent to be used for a specific purpose,
but are neither restricted nor committed. It is the City’s policy that the Finance Director shall have the authority to assign amounts of fund balance to a specific purpose; however,
before expenditure, amounts must be appropriated by the City Council which is often adopted by City Council in the biennial budget ordinance. For governmental funds, other than the General
Fund, this is the residual amount within the fund that is not restricted or committed. e. Unassigned fund balance is the residual amount of the General Fund not included in the four
categories described above. Also, any deficit fund balances within the other governmental fund types are reported as unassigned. When expenditure is incurred for purposes for which both
restricted and unrestricted resources are available, it is the City’s policy to use restricted resources first. When expenditures are incurred for purposes, for which unrestricted (committed,
assigned, and unassigned) resources are available, and amounts in any of these unrestricted classifications could be used, it is the City’s policy to spend committed resources first,
then assigned and unassigned, in that order. The following shows the composition of the fund balance of the governmental funds for the fiscal year ended December 31, 2015: Arterial Capital
Other Total General Street Improvement Governmental Governmental Fund Fund Fund Funds Funds Nonspendable Prepaids $ 1 27 $ -$ -$ -$ 127 Cemetery Endowment ---1,585,707 1 ,585,707 Total
Nonspendable 127 --1,585,707 1,585,834 Restricted Major Street Construction -2,405,821 --2 ,405,821 REET 1 Allowable Projects --3 ,842,606 -3,842,606 REET 2 Allowable Projects 4,326,374
-4,326,374 Arterial Street Presevation Fund 76,680 7 6,680 Parks and Trails Construction Projects ---663,940 663,940 City Tourism Promotion ---201,293 201,293 Drug Investigation and
Enforcement ---4 43,161 443,161 Community Development Block Grant Program ---44,904 4 4,904 Recreational Trail Development ---42,466 42,466 Downtown Business Area Improvements ---48,395
48,395 Street and Fire Service Mitigation Fees ---5,776,255 5,776,255 Debt Service ---13,278 13,278 Total Restricted -2,405,821 8,168,980 7,310,372 1 7,885,173 Committed Local Street
Improvements (Save our Streets) ---1,927,047 1 ,927,047 Aterial Street Preservation ---1,731,672 1,731,672 Total Committed ---3,658,719 3,658,719 Assigned Appropriations Over Estimated
Revenue 7,284,159 ---7,284,159 Arterial Street Presevation Fund 3,822,002 1 35,512 3,957,514 Drug Investigation and Enforcement ---663 663 Recreation Trail Development ---6 3 63 Downtown
Business Area Improvements ---60 60 Local Street Improvements ---153,643 1 53,643 School Administration Fees ---78,115 78,115 Cemetery Capital Enhancement and Maintenance ---1 00,573
100,573 Downtown Infrastructure Improvements ---464,551 4 64,551 Total Assigned 7,284,159 -3,822,002 933,180 12,039,341 Unassigned Unassigned 20,267,776 ---20,267,776 Total Unassigned
20,267,776 ---20,267,776 Total Fund Balances $ 27,552,062 $ 2,405,821 $ 11,990,982 $ 13,487,978 $ 55,436,843 Governmental Fund Balances December 31, 2015 Major
City of Auburn: 2015 CAFR Notes to the Financial Statements 68 F. Revenues, Expenditures and Expenses Under the modified accrual basis of accounting: • Charges for services, interest
on investments, and rents generally are considered measurable and available when earned in governmental funds. • Taxes and federal or state entitlements or shared revenues that have
been collected but not remitted by an intermediary collection agency to the City are considered measurable and available. • Special assessments are considered measurable and available
when they become due. • Grants are considered measurable and available to the extent that expenditures have been made. Other intergovernmental revenues are considered measurable and
available when earned. • Interfund revenues for goods and services are considered measurable and available when earned. • Proceeds from sale of capital assets are recognized as other
financing sources. • Revenues from taxpayer-assessed taxes (i.e., sales tax), net of estimated refunds, are recognized when measurable and available to finance expenditures of the current
period. • All other revenues are either not measurable or considered not available until collected. • Expenditures are generally recognized when incurred, except for principal and interest
on general long-term debt, which are reported as expenditures when paid, and compensated absences, which are reported as expenditures when liquidated from expendable available financial
resources. Under the accrual basis of accounting: • Revenues are recognized when earned and expenses are recognized when incurred. • Contributions of capital in proprietary fund financial
statements arise from internal and external contributions of capital assets or from grants or outside contributions of resources restricted to capital acquisition and construction. Transfers
between government and business-type activities on the government-wide statement of activities are reported as general revenues. Transfers between funds reported in the governmental
activities column are eliminated, as are transfers between funds reported in the business-type activities column. G. Estimates The preparation of the financial statements in conformity
with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the financial statements
and accompanying notes. Actual results may differ from those estimates. NOTE 2 – STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY There have been no material violations of finance-related
legal or contractual provisions, and there have been no expenditures exceeding legal appropriations in any of the funds of the City of Auburn. NOTE 3 – DEPOSITS AND INVESTMENTS At December
31, 2015, the carrying amount of the City’s cash demand deposits with Key Bank totaled $12,051,664 while the bank balance was $12,615,734. In addition, there was $17,300 in petty cash
($10,000 in the Drug Forfeiture Fund to be used for enforcements purposes, $7,300 in various petty cash and cashier change funds).
City of Auburn: 2015 CAFR Notes to the Financial Statements 69 Custodial Credit Risk. Custodial credit risk is the risk associated with the failure of a depository financial institution.
In the event of a depository financial institution’s failure, it is the risk that the City would not be able to recover its deposits or collateralized securities that are in the possession
of the outside parties. The City minimizes custodial credit risk by following the restrictions set forth in state law. The Federal Deposit Insurance Corporation (FDIC) insures the City’s
deposits up to $250,000. The Washington Public Deposit Protection Commission (WPDPC) (established under Chapter 39.58 of the Revised Code of Washington) constitutes a multiple financial
institution collateral pool. Pledged securities under the WPDPC collateral pool are held by the WPDPC’s agent in the name of the collateral pool. As required by State law, all investments
of the City’s funds are obligations of the U.S. Government, or deposits with Washington State banks that participate in the WPDPC. Pension and permanent funds are not subject to these
limitations. All temporary investments are stated at cost. Other investments are shown on the statement of net position at fair value. Investments that were not at par value (cost) as
of December 31, 2015 are reported at fair value. The fair value of the position in the state investment pool is the same as the value of shares held by the City in the pool at amortized
cost because it is operated in a manner consistent with the Securities and Exchange Commission’s Rule 2a-7 of the Investment Company Act of 1940. During 2015, the net decrease in the
fair value of investments being held for more than one year is $5,297 at yearend. As of December 31, 2015, the City had the following investments and maturities: Fair Less than 1 to
2 Investment Type Value 1 year years State investment pool $ 102,163,513 $ 102,163,513 $ -US Treasuries 71,695 71,695 -US Agencies 237,310 -237,310 $ 102,472,518 $ 102,235,208 $ 237,310
Reconciliation to governmentwide statement of net position: Total investments above $ 102,472,518 Plus: cash in checking 12,051,664 Plus: petty cash 17,300 Less: cash investments in
fiduciary funds (2,929,315) Total cash and investments, governmentwide statement of net position $ 111,612,167 Schedule of Investments by Maturities As of December 31, 2015 Investment
maturities Governmental Business-Type Activities Activities Total Cash and Cash Equivalents $ 52,457,139 $ 36,626,402 $ 89,083,541 Investments 237,310 -237,310 Temporarily Restricted:
Cash and Cash Equivalents 12,320,259 8 ,385,350 20,705,609 Permanently Restricted: Cash and Cash Equivalents 1,585,707 -1 ,585,707 $ 66,600,415 $ 45,011,752 $ 1 11,612,167 Reconciliation
of Cash and Investments Government-Wide Statement of Net Position As of December 31, 2015
City of Auburn: 2015 CAFR Notes to the Financial Statements 70 Interest Rate Risk Interest rate risk is the risk that changes in interest rates of debt investments will adversely affect
the fair value of an investment. As a means of limiting its exposure to fair value losses arising from rising interest rates, the City’s investment policy limits the maximum maturity
of an investment to not greater than three years, unless an investment is matched to an anticipated future cash flow. The segmented time distribution presented in the schedule of investments
by maturity above indicates how the City has managed its interest rate risk. Credit Risk Credit risk is the risk that an issuer or other counterparty to an investment will not fulfill
its obligations. State law and the City’s investment policy limits the instruments in which the City may invest. These include: 1. United States bonds 2. United States certificates of
indebtedness 3. Bonds or warrants of the State of Washington 4. General obligation or utility revenue bonds or warrants of its own or of any other city or town in the State 5. Its own
bonds or warrants of a local improvement district which are within the protection of the local improvement guaranty fund 6. Savings or time accounts in designated public depositories
7. Certificates, notes or bonds of United States agencies, or corporations wholly owned by the United States. 8. Repurchase agreements 9. Banker’s acceptances 10. Federal Home Loan Bank
notes and bonds, Federal Land Bank bonds, Federal National Mortgage Association notes, debentures and guaranteed certificates of participation, or obligations of any other government
sponsored corporation whose obligations are or may be eligible as collateral for advances to member banks as determined by the Board of Governors of the Federal Reserve System or any
portion thereof in investment deposits as defined in RCW 39.8.010 secured by collateral in accordance with RCW 39.58 11. Interim financing warrants of local improvement districts 12.
State Local Government Investment Pool As of December 31, 2015, the City had investments in a limited number of investment instruments as follows: • U.S. Treasuries • State Local Government
Investment Pool • Lakehaven Utility District (WA) Bonds With the exception of the State Local Government Investment Pool which is not rated and Lakehaven Utility District (WA) Bonds
which has a Moody’s rating of Aa2, all other investments above carried a rating of Aaa by Moody’s rating service at December 31, 2015. Concentration of Credit Risk Concentration of credit
risk is the risk of loss attributed to the magnitude of an investment in a single issuer. The City diversifies its investments by security type and institution. The investment policy
states: “With the exception of US Treasury securities and the State Investment Pool, no more than 20% of the City’s total investment portfolio will be invested in a single security type
or with a single financial institution”. Other information Effective 2002, the City has established arrangements with Bank of New York for safekeeping of all investments.
City of Auburn: 2015 CAFR Notes to the Financial Statements 71 The following is a schedule of investments by fund type: State Investment U.S. Pool Securities Total General Fund $ -$
2 37,310 $ 237,310 Fiduciary Funds -71,695 71,695 Treasurer's Residual Funds 102,163,513 -102,163,513 Total 102,163,513 $ 309,005 $ 102,472,518 As of December 31, 2015 Schedule of Investments
by Fund Category and Investment Type NOTE 4 – PROPERTY TAXES Property taxes received during tax year 2015 were $17,337,108 including collection of prior year delinquent assessments.
Property taxes assessed for collection in tax year 2015 were based on a regular tax levy of $2.17 per $1,000 on a total 2014 assessed value of $8,238,289,417. For levy year 2015, to
be received in 2016, the City’s regular tax levy is $2.08 per $1,000 on a 2015 assessed valuation of $8,826,618,865, as of December 31, 2015, for a total regular levy of $18,017,836.
State law provides that debt cannot be incurred in excess of the following percentages of the taxable property of the City. 1.50% of assessed value without a vote of the people 2.50%
of assessed value with a vote of the people The City has additional authority to incur the following debt as a percentage of total valuation. 2.50% of assessed value with a vote of the
people, indebtedness is for utilities 2.50% of assessed value with a vote of the people, indebtedness is for parks, or open space development At December 31, 2015, the debt limits for
the City were as follows: For Parks or Without General For Open Space a Vote Purposes Utilities Development Total Item 1.50% 1.00% 2.50% 2.50% Capacity Legal Limit $ 132,399,283 $ 8
8,266,189 $ 220,665,472 $ 220,665,472 $ 661,996,416 Outstanding indebtedness (59,408,629) ---(59,408,629) Margin available $ 72,990,654 $ 8 8,266,189 $ 220,665,472 $ 220,665,472 $ 602,587,787
With a Vote The County Treasurer acts as an agent to collect property taxes levied in the county for all taxing authorities. Taxes are levied annually on January 1 on property values
listed as of the prior August 31. The County assesses property at 100% of fair value. A revaluation of all property is required at least once every four years and a physical inspection
is required at least once every six years.
City of Auburn: 2015 CAFR Notes to the Financial Statements 72 Property taxes levied by the County Assessor and collected by the County Treasurer become a lien on the first day of the
levy year and may be paid in two installments if the total amount exceeds $10. The first half of real property taxes is due on April 30 and the balance is due October 31. Delinquent
taxes bear interest at the rate of 12% and are subject to additional penalties if not paid as scheduled. At year-end, property taxes are recorded as a receivable with the portion not
expected to be collected within 30 days after the current period are reported as other unavailable revenue in the deferred inflow of resources section of the governmental funds financial
statements. During the year, property tax revenues are recognized when cash is received. 1. The Washington State Constitution limits the total regular property taxes to 1% of assessed
valuation or $10 per $1,000 of value. If the taxes of all districts exceed this amount, each is proportionately reduced until the total is at or below the 1% limit. 2. Washington State
law in RCW 84.55.010 limits the annual growth of regular property taxes to the lesser of 1% or the rate of inflation. With a vote of the majority of the voters within a taxing district,
the 1% levy limitation can be “lifted” and additional taxes may be levied 3. The City may voluntarily levy taxes below the legal limit. Special levies approved by the voters are not
subject to the above limitations. Property taxes are recorded as receivable and offset by an unearned revenue account when levied. Since state law allows for the sale of property for
failure to pay taxes, no estimate of uncollectible taxes is made.
City of Auburn: 2015 CAFR Notes to the Financial Statements 73 NOTE 5 – INTERFUND ACTIVITY Transfers are legally authorized transfers of resources from a fund receiving revenue to the
fund through which resources are to be expended. The principal purposes for interfund transfers include interfund subsidies, transfers into capital project and debt service funds and
transfers into internal service funds for interfund facility, information services and equipment rental services. Interfund transfers for the year ended December 31, 2015 were as follows:
Funds Transfer In Transfer Out Governmental funds: General $ 149,197 $ 3,528,044 General -Cumulative Reserve 2,800,000 430,106 Total general fund 2,949,197 3,958,150 Special revenue
funds: Arterial Streets 6 94,348 378 Local Streets 150,000 378 Arterial Street Preservation 600,000 3 2,786 Mitigation Fees -742,463 Total special revenue funds 1,444,348 776,005 Debt
service funds: 1998 Library GO 279,462 -2010 A&B Annex 1,318,242 -2010 C&D Local Revitalization 216,895 -Golf Debt Service 412,204 -LID Guarantee 449 2 3,443 LID 250 -449 Total debt
service funds 2,227,252 23,892 Capital projects funds: Municipal Park Construction 464,866 -Capital Improvements 15,167 1,880,579 Total capital projects funds 480,033 1,880,579 Proprietary
funds: Water -2 03,642 Sewer -190,371 Storm Drainage 5 26,059 198,781 Cemetery 30,000 -Total proprietary funds 556,059 5 92,794 Internal service funds: Facilities -659,121 Innovation
& Technology 102,807 -Equipment Rental 398,112 2 37,267 Total internal service funds 500,919 8 96,388 Permanent funds: Cemetery Endowed Care -3 0,000 Total $ 8,157,808 $ 8,157,808 All
transfers are considered routine. Transfers
City of Auburn: 2015 CAFR Notes to the Financial Statements 74 Loans between funds are classified as interfund receivable and payable. Interfund Loans do not affect total fund equity.
Balance Balance Due From Due To 1/1/2015 New Loans Repayments 12/31/2015 Airport Fund Capital Improvement $ 200,000 $ -$ 1 6,605 $ 1 83,395 Parks Construction General fund $ -$ 400,000
$ -$ 400,000 Total interfund loans $ 200,000 $ 400,000 $ 1 6,605 $ 583,395 All interfund loans are considered short-term cash loans. *The purpose of the interfund loan to The Airport
Fund is to cover the cost of The Auburn Municipal T Hanger Enclosure Project. *The purpose of the interfund loan to the Municipal Parks Construction Fund (a Grant Sustained Fund), is
to cover authorized expenditures while the city waits for reimbursement of federal, state, and local grant monies. Interfund Loans
City of Auburn: 2015 CAFR Notes to the Financial Statements 75 NOTE 6 – DUE FROM OTHER GOVERNMENTAL UNITS As of December 31, 2015, the City had receivables due from other governmental
units as follows: General Fund: Okanogan County -Disaster Response 10,044 King Conservation District -Farmer's Market 10,293 King County District Court 612,897 King County Public Health
-Rampart Grant 3,953 King County -Real Estate Excise Taxes 447,125 King County Sheriff's -Registered Sex Offender Grant 7,928 Pierce County -Real Estate Excise Taxes 15,367 Muckleshoot
Indian Tribe 152,315 Seattle Police Dept -US Department of Justice JAG Grant 36,964 US Department of Justice -COPS Hiring Program 72,917 WA Auto Theft Prevention Authority -Auto Theft
Prevention Grant 46,421 WA State Department of Ecology -Area-wide Redevelopment Plan 22,409 WA State Military Department -EMPG Grant 16,663 WA State Treasurer -Sales Taxes 1,346,251
Total General Fund 2,801,547 Arterial Street Fund: WA State Transportation Improvement Board -Arterial Street Imp. 1,213,265 Muckleshoot Indian Tribe 158,855 WA Dept. of Transportation
-Arterial street imp. 786,851 Total Arterial Street Fund 2,158,971 Arterial Street Preservation Fund: WA Dept. of Transportation -Arterial street imp. 17,615 Drug Forfeiture Fund: Pierce
County Sheriff's Department -TNET 9 ,752 Housing & Community Development: U.S. Dept. of Housing -Community Development Block Grant 82,231 Municipal Park Construction: King Conservation
District 20,000 King County Flood Control District 273,390 WA State Department of Commerce 1,276,277 WA State Recreation & Conservation Office 73,146 Total Municipal Park Construction
Fund 1,642,813 General Government Capital Improvements: KC Flood Control District 83,728 Pierce County -Real Estate Excise Taxes 18,872 102,600 Water Fund:Okanogan County -Disaster Response
1,495 Sewer Fund:Okanogan County -Disaster Response 1,451 Storm Fund:WA State Department of Ecology 71,979 City of Pacific 300 King Conservation District 20,000 King County Flood Control
District 20,949 Lakehaven Utility District 44,196 Okanogan County -Disaster Response 1,451 Total Storm Drainage Fund 158,875 Solid Waste Fund: King County -Local hazardous waste management
grant 20,302 King County -Waste reduction and recycling grant 31,381 Total Solid Waste fund 51,683 Airport FundFederal Aviation Administration 41,215 WA Department of Transportation
-Aviation Division 2,290 Total Airport fund 43,505 Information Services Fund: City of Pacific 3,614 VRFA 2,024 Total Information Services fund 5,638 Equipment Rental Fund: Okanogan County
-Disaster Response 138 Total 7,078,314 Reconciliation to government-wide statement of net assets: Total above due from other governmental units 7,078,314 Amount due to fiduciary fund
-Total due from other governmental units, 7,078,314 Due from Other Governmental Units government-wide statement of net assets
City of Auburn: 2015 CAFR Notes to the Financial Statements 76 NOTE 7 – CAPITAL ASSETS AND DEPRECIATION Capital asset activity for the year ended December 31, 2015 is as follows: Balance
Decreases/Balance 1/1/15 Increases Adjustments 12/31/15 Governmental activities: Capital assets, not being depreciated: Land $ 107,948,445 $ 341,320 $ -$ 108,289,765 Construction in
progress 9,017,708 9,554,415 (8,982,981) 9,589,142 Total capital assets, not being depreciated 116,966,153 9,895,735 (8,982,981) 117,878,907 Capital assets, being depreciated: Buildings
64,959,775 386,877 -65,346,652 Improvements other than buildings 21,990,489 169,049 -22,159,538 Machinery and equipment 23,970,337 2,078,712 (570,764) 25,478,285 Intangibles 1,095,684
--1,095,684 Infrastructure 3 31,854,616 25,431,153 -357,285,769 Total capital assets being depreciated 443,870,901 28,065,791 (570,764) 471,365,928 Less: accumulated depreciation for:
Buildings (15,650,395) (1,353,164) -( 17,003,559) Improvements other than buildings (13,197,527) (777,211) -(13,974,738) Machinery and equipment (17,024,263) (1,647,447) 466,987 (18,204,723)
Intangibles (594,028) (154,563) -(748,591) Infrastructure (130,695,021) (12,760,769) -(143,455,790) Total accumulated depreciation (177,161,234) (16,693,154) 466,987 (193,387,401) Total
capital assets, being depreciated, net 266,709,667 11,372,637 ( 103,777) 277,978,527 Governmental activities capital assets, net $ 383,675,820 $ 21,268,372 $ (9,086,758) $ 395,857,434
Business-type activities: Capital assets, not being depreciated: Land $ 1 2,276,187 $ 250,000 $ -$ 1 2,526,187 Water Rights 5,196,600 --5,196,600 Construction in progress 9,766,126 17,082,804
(9,982,039) 16,866,891 Total capital assets, not being depreciated 27,238,913 17,332,804 (9,982,039) 34,589,678 Capital assets, being depreciated: Buildings 5,741,934 --5,741,934 Improvements
other than buildings 274,592,668 14,459,816 -289,052,484 Machinery and equipment 2,454,604 25,901 -2,480,505 Total capital assets being depreciated 282,789,206 14,485,717 -297,274,923
Less: accumulated depreciation for: Buildings (3,694,929) (126,432) -(3,821,361) Improvements other than buildings (93,451,201) (7,099,896) -(100,551,097) Machinery and equipment ( 2,155,059)
(29,370) -(2,184,429) Total accumulated depreciation (99,301,189) (7,255,698) -(106,556,887) Total capital assets, being depreciated, net 183,488,017 7,230,019 -190,718,036 Business-type
activities capital assets, net $ 210,726,930 $ 2 4,562,823 $ (9,982,039) $ 225,307,714 Schedule of Capital Asset Activity
City of Auburn: 2015 CAFR Notes to the Financial Statements 77 Depreciation/amortization expense was charged to functions/programs of the City as follows: Governmental activities: General
government $ 1,023,689 Public safety 403,821 Transportation 12,408,899 Culture and recreation 1,304,780 Capital assets held by the City's internal service funds are charged to the various
functions based on their usage of the assets 1,551,965 Total depreciation/amortization expense -governmental activities $ 16,693,154 Business-type activities: Water $ 2 ,934,694 Sanitary
sewer 2,120,150 Storm water 1,663,208 Solid waste 18,819 Airport 468,031 Cemetery 50,796 Total depreciation expense -business-type activities $ 7,255,698 The 2015 total interest cost
incurred for business-type activities was $1,428,387 of which $1,037,940 was charged to expense and $390,447 capitalized. NOTE 8 – CAPITAL LEASE OBLIGATION The City has the following
capital leases: On January 1, 2007 the City entered into a capital lease agreement for the Auburn Avenue Theater facility for a 15 year term. The intent is for the City’s Parks, Arts
and Recreation department to offer performances to the public, as well as make the facility available for short-term rentals. On July 15, 2015 the City entered into a 5 year term capital
lease agreement to finance the purchase of a John Deere Excavator. The lease agreement qualifies as a capital lease for accounting purposes. The assets acquired through capital leases
are as follows: Governmental As s et Ac tivities Auburn Avenue Theater $ 749,1 10 John Deere E xcavator 204,710 Les s : Ac cumulated Deprec iation (444,557) Total As s ets Acquired Through
Capital Leas es $ 509,263 As s ets Acquired Through Capital Leas es
City of Auburn: 2015 CAFR Notes to the Financial Statements 78 The future minimum lease obligation and the net present value of these minimum lease payments as of December 31, 2015,
were as follows: NOTE 9 – LONG-TERM LIABILITIES General Obligation Bonds are direct obligations of the City for which its full faith and credit are pledged. Debt service for voter-approved
issues, of which the City has none, would be funded by special property tax levies. Debt service for City Council authorized bonds, also called councilmanic bonds, is funded from regular
property taxes or general revenues, and is generally paid from debt service funds but can be paid from other designated funds. General Obligation Bonds outstanding at year-end are as
follows: • 2005 Limited Tax General Obligation refunding bonds were issued to partially advance refund the 1999 Limited Tax Obligation bonds. 1999 Limited Tax General Obligation bonds
were issued for construction of hangars at the Auburn Municipal Airport. The 2005 Limited Tax General Obligation refunding bonds mature in 2019 and are paid from the Airport fund. •
2006 Limited Tax General Obligation bonds were issued to fund improvements at the Auburn Golf Course including a pro shop, clubhouse and related facilities, as well as construction of
a columbarium at the Mountain View Cemetery. During 2014, the outstanding bonds which were issued to fund improvements to the Auburn Golf Course were transferred from the Golf Fund and
are now included in the governmental activities. In 2015, the outstanding bonds which were issued to construct a columbarium at the Mountain View Cemetery were transferred from the Cemetery
Fund and are now included in the governmental activities. The removal of debt from the enterprise fund was treated as a capital contribution. • 2006 Limited Tax General Obligation (taxable)
bonds were issued to construct and equip restaurant, banquet and related facilities for a restaurant facility to be located at the Auburn Golf Course clubhouse. The outstanding bonds
were transferred from the Golf Fund and are now included in the governmental activities. The removal of debt from the enterprise fund was treated as a capital contribution. • 2010A Limited
Tax General Obligation Improvement and Refunding bonds were issued to provide funds with which to (i) pay a portion of the costs of acquisition of certain condominium units to provide
city office space near City Hall (City Hall Annex) in lieu of the City Hall Annex lease and (ii) to partially advance refund the 1998 Limited Tax General Obligation bonds. The 1998 Limited
General Obligation bonds were issued for construction of a library to be owned and operated by the King County Rural Library District. The City advance refunded the 1998 Limited Tax
General Obligation bonds in 2010. The debt is considered extinguished in an in-substance defeasance and, accordingly is not reflected in the accompanying financial statements. The remaining
balance of outstanding defeased debt as of December 31, 2015 is $780,000. • 2010B Limited Tax General Obligation Bonds (Taxable Build America Bonds – Direct Payment) bonds were issued
to provide funds with which to pay a portion of the costs of acquisition of certain condominium units to provide city office space near City Hall (City Hall Annex) in lieu of the City
Hall Annex lease. Theater E xcavator Total 2016 $ 77,699 $ 44,140 $ 121 ,839 2017 77,699 44,140 121 ,839 2018 77,699 44,140 121 ,839 2019 77,699 44,140 121 ,839 2020 77,699 22,480 100,179
2021 77,504 -77,504 Total minimum leas e payments 465,999 199,040 665,039 Les s : Amounts repres enting interes t (81 ,818) (13,448) (95,266) P res ent value of future minimum leas e
payments $ 3 84,181 $ 185,592 $ 569,773 Leas e P ayable S chedule of Future Minimum Leas e Payments
City of Auburn: 2015 CAFR Notes to the Financial Statements 79 • 2010C Limited Tax General Obligation Bonds were issued to provide funds with which to pay portion of the downtown infrastructure
improvements in the City’s revitalization area. • 2010D Limited Tax General Obligation Bonds (Taxable Build America Bonds – Direct Payment) bonds were issued to provide funds with which
to pay portion of the downtown infrastructure improvements in the City’s revitalization area. Revenue Bonds are payable from water, sewer and storm drainage utility revenues generated
by those enterprise funds. State of Washington Public Works Trust Fund Loans are a direct responsibility of the City. Auburn currently has eight outstanding loans with a remaining total
balance of $11,650,644. Six of the loans are for water and sewer construction projects. The loans are being repaid from water and sewer fund revenues over a 20-year period that begins
upon each project completion (PWTF 1999, PWTF 2001, PWTF 2002, PWTF 2004, PWTF 2006 & PWTF 2013). The other two loans are for arterial street improvements and are being repaid from arterial
street fund revenues over a 20-year period that began in 2009 upon project completion (PWTF 2008) and over a 29-year period that began in 2013 upon project completion (PWTF 2012). Compensated
Absences are paid by those funds that have employees. These are mostly payable by the General fund and enterprise funds. The following schedules summarize the long-term debt transactions
of the City for the year ended December 31, 2015. The first table summarizes all debt transactions for Auburn, while the second provides detailed information on all longterm debt. Additional
schedules reflect total annual debt service requirements to maturity and the reconciliation of debt by fund type. General Obligation (1) Utility Employee Leave Benefit Other Post Employment
Benefits Pension Liability Premium Due To Other Governments Total Long-term liabilities payable 12/31/14 $ 36,754,241 $ 38,954,538 $ 2,463,411 $ 6,211,464 $ -$ 1,578,439 $ 25,137,800
$ 111,099,893 Added 695,174 850,402 2,259,690 1,945,816 18,726,785 9,226 -24,487,093 Retired (2,132,845) (2,231,093) (2,044,356) (909,657) -(136,417) (860,150) (8,314,518) Long-term
liabilities payable 12/31/15 $ 35,316,570 $ 37,573,847 $ 2,678,745 $ 7,247,623 $ 18,726,785 $ 1,451,248 $ 24,277,650 $ 127,272,468 (1) Includes capital leases CHANGES IN LONG-TERM LIABILITES
SUMMARY Year Principal Interest Principal Interest Principal Interest Principal (1) Interest 2016 2,099,950 3,219,326 93,137 24,060 2,523,493 1,534,878 4,716,580 4,778,264 2017 2,189,400
3,127,140 97,991 20,345 2,568,493 1,481,621 4,855,884 4,629,106 2018 2,266,100 3,027,605 103,130 16,374 2 ,618,493 1,427,652 4,987,723 4,471,631 2019 2,069,350 2,932,873 108,571 12,129
2,673,493 1,366,533 4,851,414 4,311,535 2020 1,949,150 2,846,490 92,127 7,591 2,551,124 1,294,302 4 ,592,401 4,148,383 2021-2025 10,947,950 13,172,939 74,817 2,741 12,626,091 5,178,730
23,648,858 1 8,354,410 2026-2030 11,063,100 1 0,524,179 --12,997,962 2,375,073 24,061,062 12,899,252 2031-2035 13,071,050 7,018,605 --2,399,537 124,560 15,470,587 7,143,165 2036-2040
9,281,600 2,854,345 --584,965 11,700 9,866,565 2,866,045 2041-2045 ----116,993 585 116,993 585 Totals $ 54,937,650 $ 48,723,502 $ 569,773 $ 83,240 $ 41,660,644 $ 14,795,634 $ 97,168,067
$ 63,602,376 (1) $ 97,168,067 Principal debt service requirements to maturity 2,678,745 Employee Leave Benefits 7,247,623 Other Post Employment Benefits 18,726,785 Pension Liability
1,451,248 Premium $ 127,272,468 Long Term Liabilities 12/31/2015 Obligation Bonds Obligation Bonds/Loans Long-Term Debt DEBT SERVICE REQUIREMENT TO MATURITY General Capital Lease Utility
Total
City of Auburn: 2015 CAFR Notes to the Financial Statements 80 Interest Maturity Original Principal Balance Balance Due Within Issue Name Rates Date Amount(2) Installments 12/31/14 Additions
Reductions 12/31/15 One Year GOVERNMENTAL DEBT General Obligation Bonds: GO bond 2006-Golf/Cemetery (1)(3) 4.25-5.00% 12/1/2025 $ 2,784,536 $5,000 -$395,000 $ 2,784,536 $ 490,464 $ (5,000)
$ 3,270,000 $ 265,000 GO bond 2006 taxable-Golf 5.40-5.52% 12/1/2015 1,885,000 $45,000 -$245,000 245,000 -(245,000) --LTGO 2010A (1) 2.00-4.50% 12/1/2018 4,385,000 $235,000 -$720,000
1,015,000 -(235,000) 780,000 250,000 LTGO 2010B (1) 3.27-6.24% 12/1/2039 20,365,000 $535,000 -$1,240,000 20,365,000 -(535,000) 19,830,000 545,000 LTGO 2010D (1) 3.27-6.19% 12/1/2034
6,320,000 $220,000 -$445,000 6,320,000 -(220,000) 6,100,000 225,000 Total General Obligation Bonds 35,739,536 30,729,536 490,464 (1,240,000) 29,980,000 1,285,000 Capital Leases: Auburn
Avenue Theater 6.68% 12/31/2021 695,504 $4,078 -$6,429 435,068 -(50,887) 384,181 54,030 John Deere Financial Excavator Lease 3.00% 7/15/2020 204,710 $3,678 -204,710 (19,118) 185,592
39,107 Total Capital Leases 435,068 204,710 (70,005) 569,773 93,137 Employee Leave Benefits: Compensated absences 1,892,260 1,734,465 (1,570,606) 2,056,119 1,609,150 Other Post Employment
Benefits: LEOFF 1 6,211,464 1,945,816 (909,657) 7,247,623 -Pension Liability -12,828,199 -12,828,199 -Public Works Trust Fund Loans: PWTF 2008 0.50% 7/1/2028 1,527,273 $80,383 1,125,359
-(80,383) 1,044,976 80,383 PWTF 2012 0.50% 6/1/2041 3,284,857 $116,993 3,158,814 -(116,993) 3,041,821 116,993 Total Public Works Trust Fund Loans 4,812,130 4,284,173 -(197,376) 4,086,797
197,376 Premium Related to Debt 168,882 9,226 (34,726) 143,382 -Total Governmental $ 41,247,170 $ 43,721,383 $ 17,212,880 $ (4,022,370) $ 56,911,893 $ 3,184,663 BUSINESS-TYPE DEBT General
Obligation Bonds GO refunding bond 2005 (1) 4.00-4.50% 12/1/2019 $ 1,375,000 $10,000 -$190,000 $ 815,000 $ -$ (135,000) $ 680,000 $ 150,000 GO bond 2006-Golf/Cemetery (1)(3) 4.25-5.00%
12/1/2025 3,275,000 $5,000 -$395,000 490,464 -(490,464) --Total General Obligation Bonds 4,650,000 1,305,464 -(625,464) 680,000 150,000 Revenue Bonds: Utility sys refunding bonds 2005
(1) 3.00-4.75% 11/1/2016 2,765,000 $45,000 -$355,000 695,000 -(340,000) 355,000 355,000 Utility sys bonds 2010 (1) 3.00-6.40% 12/1/2030 21,295,000 $575,000 -$1,720,000 20,130,000 -(605,000)
19,525,000 630,000 Utility sys bonds 2013 (1) 0.38-4.00% 12/1/2032 11,415,000 $335,000 -$785,000 10,605,000 -(475,000) 10,130,000 480,000 Total Revenue Bonds 35,475,000 31,430,000 -(1,420,000)
30,010,000 1,465,000 Employee Leave Benefits: Compensated absences 571,151 525,225 (473,750) 622,626 487,276 Pension Liability -5,898,586 -5,898,586 -Public Works Trust Fund Loans: PWTF
1999 1.00% 7/1/2019 3,465,000 $182,368 911,842 -(182,368) 729,474 182,368 PWTF 2001 0.50% 7/1/2021 4,290,405 $227,086 1,589,599 -(227,086) 1,362,513 227,086 PWTF 2002 1.00% 7/1/2022
641,250 $26,114 208,916 -(26,114) 182,802 26,115 PWTF 2004 0.50% 7/1/2024 2,049,036 $107,844 1,078,440 -(107,844) 970,596 107,844 PWTF 2006 0.50% 7/1/2026 3,325,000 $180,418 2,165,015
-(180,418) 1,984,597 180,418 PWTF 2013 2.00% 6/1/2032 1,654,561 $87,263 1,570,726 850,402 (87,263) 2,333,865 137,286 Total Public Works Trust Fund Loans 15,425,252 7,524,538 850,402
(811,093) 7,563,847 861,117 Premium Related to Debt 1,409,557 -(101,691) 1,307,866 -Total Proprietary $ 55,550,252 $ 42,240,710 $ 7,274,213 $ (3,431,998) $ 46,082,925 $ 2,963,393 Total
All Funds $ 96,797,422 $ 85,962,093 $ 24,487,093 $ (7,454,368) $ 102,994,818 $ 6,148,056 (1) Subject to federal arbitrage compliance rules. (2) The original amount is the amount authorized
and issued with exception of the Utility System Bonds 2013 in which the authorized amount was $13,000,000 and the issued amount was $11,415,000. (3) The outstanding bonds which were
issued to fund improvements at the Cemetery were transferred from the Cemetery Fund and are now included in the governmental activities. CHANGES IN LONG-TERM LIABILITIES Schedule of
Authorized, Is sued and Out s tanding Bonds (2 )
City of Auburn: 2015 CAFR Notes to the Financial Statements 81 Due to Other Governments • Valley Communication Center Public Development Authority issued General Obligation bonds in
2000 for a new dispatch facility. The City is contracted to pay 20% of the debt service of these 15-year bonds that mature in 2015. This debt is paid from the General fund and its final
debt service payment was made in 2015. • SCORE Public Development Authority issued General Obligation bonds in 2009 to acquire, construct, improve, and equip a consolidated correctional
facility located in Des Moines, Washington. The city is contracted to pay 31% of the debt service of these 30 year bonds that mature in 2039. This debt is paid from the General fund.
Interest Maturity Original Principal Balance Balance Due Within Issue Name Rates Date Amount Installments 12/31/14 Additions Reductions 12/31/15 One Year GOVERNMENTAL DEBT: General Obligation
Bonds: Valley Communication Public Dev Auth 3.00-4.00% 12/1/2015 $ 1,065,000 $21,000 -$220,000 $ 220,000 $ -$ (220,000) $ -$ -SCORE Public Development Authority 3.00-6.62% 1/1/2039 26,732,850
$593,650 -$1,601,150 24,917,800 -(640,150) 24,277,650 664,950 Total General Obligation Bonds Due Other Governments $ 27,797,850 $ 25,137,800 $ -$ (860,150) $ 24,277,650 $ 664,950 CHANGES
IN LONG-TERM LIABILITIES DUE TO OTHER GOVERNMENTS Enterprise Governmental Funds Funds 12/31/15 Liabilities payable from restricted assets: Revenue bonds $ 2,922,900 $ -$ 2,922,900 Long-term
bonds payable: General obligation bonds 680,000 29,980,000 30,660,000 Capital lease -569,773 569,773 Revenue bonds 27,087,100 -27,087,100 Public Works Trust Fund loans 7,563,847 4,086,797
11,650,644 Due to Other Governments -24,277,650 24,277,650 Employee leave benefits 622,626 2,056,119 2,678,745 Other Post Employment Benefits -7,247,623 7,247,623 Pension Liability 5,898,586
12,828,199 18,726,785 Premium 1,307,866 143,382 1,451,248 Total long-term debt $ 46,082,925 $ 81,189,543 $ 127,272,468 LONG-TERM LIABILITIES RECONCILIATION Revenue Bond Debt Service
Coverage The required debt service coverage for the 2013 utility revenue bonds, 2010 utility revenue bonds and the 2005 utility revenue refunding bonds is 1.25. Debt service coverage
for 2015 was 2.96. The ratio indicates the direction and degree to which the revenue stream exists to meet the current debt burden. The ratio is calculated by dividing the net revenue
available by debt service requirements. The restricted rate stabilization fund for the utility revenue bonds was established to minimize the effect on rates of revenue fluctuations between
years. By transferring cash into this stabilization fund, adjusted net revenue available for debt service, as defined, would be decreased by the amount of the transfer. Conversely, transfers
out of the account would increase adjusted net revenue available for debt service. Estimated Arbitrage Rebate The Federal Tax Reform Act of 1986 requires issuers of tax-exempt debt of
over $5 million to make payments to the United States Treasury of investment interest received at yields that exceed the issuer’s tax-exempt borrowing rates. Payments of arbitrage rebate
amounts due under these regulations must be made to the U.S. Treasury every five
City of Auburn: 2015 CAFR Notes to the Financial Statements 82 years. The City’s estimated rebatable arbitrage amount as of December 31, 2015 is $0 for its tax-exempt bond issues subject
to the Tax Reform Act issued through that date. Note 10 – Pension Plans The following table represents the aggregate pension amounts for all plans subject to the requirements of the
GASB Statement 68, Accounting and Financial Reporting for Pensions for the year 2015: Aggregate Pension Amounts – All Plans Pension liabilities $ 18,726,785 Pension assets 4,893,695
Deferred outflows of resources 2,804,543 Deferred inflows of resources 4,230,566 Pension expense/expenditures $ 1,449,827 State Sponsored Pension Plans Substantially all City full-time
and qualifying part-time employees participate in one of the following statewide retirement systems administered by the Washington State Department of Retirement Systems, under cost-sharing,
multiple-employer public employee defined benefit and defined contribution retirement plans. The state Legislature establishes, and amends, laws pertaining to the creation and administration
of all public retirement systems. The Department of Retirement Systems (DRS), a department within the primary government of the State of Washington, issues a publicly available comprehensive
annual financial report (CAFR) that includes financial statements and required supplementary information for each plan. The DRS CAFR may be obtained by writing to: Department of Retirement
Systems Communications Unit P.O. Box 48380 Olympia, WA 98540-8380 Or the DRS CAFR may be downloaded from the DRS website at www.drs.wa.gov. Public Employees’ Retirement System (PERS)
PERS members include elected officials; state employees; employees of the Supreme, Appeals and Superior Courts; employees of the legislature; employees of district and municipal courts;
employees of local governments; and higher education employees not participating in higher education retirement programs. PERS is comprised of three separate pension plans for membership
purposes. PERS plans 1 and 2 are defined benefit plans, and PERS plan 3 is a defined benefit plan with a defined contribution component. PERS Plan 1 provides retirement, disability and
death benefits. Retirement benefits are determined as two percent of the member’s average final compensation (AFC) times the member’s years of service. The AFC is the average of the
member’s 24 highest consecutive service months. Members are eligible for retirement from active status at any age with at least 30 years of service, at age 55 with at least 25 years
of service, or at age 60 with at least five years of service. Members retiring from active status prior to the age of 65 may receive actuarially reduced benefits. Retirement benefits
are actuarially reduced to reflect the choice of a survivor benefit. Other benefits include duty and non-duty disability payments, an optional cost-of-living adjustment (COLA), and a
one-time duty-related death benefit, if found eligible by the Department of Labor and Industries. PERS 1 members were vested after the completion of five years of eligible service. The
plan was closed to new entrants on September 30, 1977.
City of Auburn: 2015 CAFR Notes to the Financial Statements 83 Contributions The PERS Plan 1 member contribution rate is established by State statute at 6 percent. The employer contribution
rate is developed by the Office of the State Actuary and includes an administrative expense component that is currently set at 0.18 percent. Each biennium, the state Pension Funding
Council adopts Plan 1 employer contribution rates. The PERS Plan 1 required contribution rates (expressed as a percentage of covered payroll) for 2015 were as follows: PERS Plan 1 Actual
Contribution Rates: Employer Employee* January through June 2015 9.21% 6.00% July through December 2015 11.18% 6.00% * For employees participating in JBM, the contribution rate was 12.26%
The City’s actual contributions to the plan were $1,001,824 for the year ended December 31, 2015. PERS Plan 2/3 provides retirement, disability and death benefits. Retirement benefits
are determined as two percent of the member’s average final compensation (AFC) times the member’s years of service for Plan 2 and 1 percent of AFC for Plan 3. The AFC is the average
of the member’s 60 highest-paid consecutive service months. There is no cap on years of service credit. Members are eligible for retirement with a full benefit at 65 with at least five
years of service credit. Retirement before age 65 is considered an early retirement. PERS Plan 2/3 members who have at least 20 years of service credit and are 55 years of age or older,
are eligible for early retirement with a benefit that is reduced by a factor that varies according to age for each year before age 65. PERS Plan 2/3 members who have 30 or more years
of service credit and are at least 55 years old can retire under one of two provisions: • With a benefit that is reduced by three percent for each year before age 65; or • With a benefit
that has a smaller (or no) reduction (depending on age) that imposes stricter return-to-work rules. PERS Plan 2/3 members hired on or after May 1, 2013 have the option to retire early
by accepting a reduction of five percent for each year of retirement before age 65. This option is available only to those who are age 55 or older and have at least 30 years of service
credit. PERS Plan 2/3 retirement benefits are also actuarially reduced to reflect the choice of a survivor benefit. Other PERS Plan 2/3 benefits include duty and non-duty disability
payments, a cost-ofliving allowance (based on the CPI), capped at three percent annually and a one-time duty related death benefit, if found eligible by the Department of Labor and Industries.
PERS 2 members are vested after completing five years of eligible service. Plan 3 members are vested in the defined benefit portion of their plan after ten years of service; or after
five years of service if 12 months of that service are earned after age 44. PERS Plan 3 defined contribution benefits are totally dependent on employee contributions and investment earnings
on those contributions. PERS Plan 3 members choose their contribution rate upon joining membership and have a chance to change rates upon changing employers. As established by statute,
Plan 3 required defined contribution rates are set at a minimum of 5 percent and escalate to 15 percent with a choice of six options. Employers do not contribute to the defined contribution
benefits. PERS Plan 3 members are immediately vested in the defined contribution portion of their plan. Contributions The PERS Plan 2/3 employer and employee contribution rates are developed
by the Office of the State Actuary to fully fund Plan 2 and the defined benefit portion of Plan 3. The Plan 2/3 employer rates include a component to address the PERS Plan 1 UAAL and
an administrative expense that is currently set at 0.18 percent. Each biennium, the state Pension Funding Council adopts Plan 2 employer and employee contribution rates and Plan 3 contribution
rates. The PERS Plan 2/3 required contribution rates (expressed as a percentage of covered payroll) for 2015 were as follows:
City of Auburn: 2015 CAFR Notes to the Financial Statements 84 PERS Plan 2/3 Actual Contribution Rates: Employer 2/3 Employee 2* January through June 2015 9.21% 4.92% July through December
2015 11.18% 6.12% Employee PERS Plan 3 varies * For employees participating in JBM, the contribution rate was 15.30% The City’s actual contributions to the plan were $1,286,928 for the
year ended December 31, 2015. Law Enforcement Officers’ and Fire Fighters’ Retirement System (LEOFF) LEOFF membership includes all full-time, fully compensated, local law enforcement
commissioned officers, firefighters, and as of July 24, 2005, emergency medical technicians. LEOFF is comprised of two separate defined benefit plans. LEOFF Plan 1 provides retirement,
disability and death benefits. Retirement benefits are determined per year of service calculated as a percent of final average salary (FAS) as follows: • 20+ years of service – 2.0%
of FAS • 10-19 years of service – 1.5% of FAS • 5-9 years of service – 1% of FAS The FAS is the basic monthly salary received at the time of retirement, provided a member has held the
same position or rank for 12 months preceding the date of retirement. Otherwise, it is the average of the highest consecutive 24 months’ salary within the last ten years of service.
Members are eligible for retirement with five years of service at the age of 50. Other benefits include duty and non-duty disability payments, a cost-of living adjustment (COLA), and
a one-time duty-related death benefit, if found eligible by the Department of Labor and Industries. LEOFF 1 members were vested after the completion of five years of eligible service.
The plan was closed to new entrants on September 30, 1977. Contributions Starting on July 1, 2000, LEOFF Plan 1 employers and employees contribute zero percent, as long as the plan remains
fully funded. The LEOFF Plan I had no required employer or employee contributions for fiscal year 2015. Employers paid only the administrative expense of 0.18 percent of covered payroll.
LEOFF Plan 2 provides retirement, disability and death benefits. Retirement benefits are determined as two percent of the final average salary (FAS) per year of service (the FAS is based
on the highest consecutive 60 months). Members are eligible for retirement with a full benefit at 53 with at least five years of service credit. Members who retire prior to the age of
53 receive reduced benefits. If the member has at least 20 years of service and is age 50, the reduction is three percent for each year prior to age 53. Otherwise, the benefits are actuarially
reduced for each year prior to age 53. LEOFF 2 retirement benefits are also actuarially reduced to reflect the choice of a survivor benefit. Other benefits include duty and non-duty
disability payments, a cost-of-living allowance (based on the CPI), capped at three percent annually and a one-time duty-related death benefit, if found eligible by the Department of
Labor and Industries. LEOFF 2 members are vested after the completion of five years of eligible service. Contributions The LEOFF Plan 2 employer and employee contribution rates are developed
by the Office of the State Actuary to fully fund Plan 2. The employer rate included an administrative expense component set at 0.18 percent. Plan 2 employers and employees are required
to pay at the level adopted by the LEOFF Plan 2 Retirement Board. The LEOFF Plan 2 required contribution rates (expressed as a percentage of covered payroll) for 2015 were as follows:
City of Auburn: 2015 CAFR Notes to the Financial Statements 85 LEOFF Plan 2 Actual Contribution Rates: Employer Employee State and local governments 5.23% 8.41% Ports and Universities
8.59% 8.41% The City’s actual contributions to the plan were $551,812 for the year ended December 31, 2015. The Legislature, by means of a special funding arrangement, appropriates money
from the state General Fund to supplement the current service liability and fund the prior service costs of Plan 2 in accordance with the recommendations of the Pension Funding Council
and the LEOFF Plan 2 Retirement Board. This special funding situation is not mandated by the state constitution and could be changed by statute. For the state fiscal year ending June
30, 2015, the state contributed $58,339,032 to LEOFF Plan 2. Actuarial Assumptions The total pension liability (TPL) for each of the DRS plans was determined using the most recent actuarial
valuation completed in 2015 with a valuation date of June 30, 2014. The actuarial assumptions used in the valuation were based on the results of the Office of the State Actuary’s (OSA)
2007-2012 Experience Study. Additional assumptions for subsequent events and law changes are current as of the 2014 actuarial valuation report. The TPL was calculated as of the valuation
date and rolled forward to the measurement date of June 30, 2015. Plan liabilities were rolled forward from June 30, 2014, to June 30, 2015, reflecting each plan’s normal cost (using
the entry-age cost method), assumed interest and actual benefit payments. • Inflation: 3% total economic inflation; 3.75% salary inflation • Salary increases: In addition to the base
3.75% salary inflation assumption, salaries are also expected to grow by promotions and longevity. • Investment rate of return: 7.5% Mortality rates were based on the RP-2000 report’s
Combined Healthy Table and Combined Disabled Table, published by the Society of Actuaries. The OSA applied offsets to the base table and recognized future improvements in mortality by
projecting the mortality rates using 100 percent Scale BB. Mortality rates are applied on a generational basis; meaning, each member is assumed to receive additional mortality improvements
in each future year throughout his or her lifetime. There were minor changes in methods and assumptions since the last valuation. • The OSA updated demographic assumptions, consistent
with the changes from the 2007-2012 Experience Study Report, used when valuing the PERS 1 and TERS 1 Basic Minimum COLA. • The OSA corrected how valuation software calculates a member’s
entry age under the entry age normal actuarial cost method. Previously, the funding age was rounded, resulting in an entry age one year higher in some cases. • For purposes of calculating
the Plan 2/3 Entry Age Normal Cost contribution rates, the OSA now uses the current blend of Plan 2 and Plan 3 salaries rather than using a long-term membership assumption of two-thirds
Plan 2 members and one-third Plan 3 members. • The OSA changed the way it applies salary limits, as described in the 2007-2012 Experience Study Report. Discount Rate The discount rate
used to measure the total pension liability for all DRS plans was 7.5 percent. To determine that rate, an asset sufficiency test included an assumed 7.7 percent long-term discount rate
to determine funding liabilities for calculating future contribution rate requirements. (All plans use 7.7 percent except LEOFF 2,
City of Auburn: 2015 CAFR Notes to the Financial Statements 86 which has assumed 7.5 percent). Consistent with the long-term expected rate of return, a 7.5 percent future investment
rate of return on invested assets was assumed for the test. Contributions from plan members and employers are assumed to continue being made at contractually required rates (including
PERS 2/3, PSERS 2, SERS 2/3, and TRS 2/3 employers, whose rates include a component for the PERS 1, and TRS 1 plan liabilities). Based on these assumptions, the pension plans’ fiduciary
net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return of 7.5 percent was
used to determine the total liability. Long-Term Expected Rate of Return The long-term expected rate of return on the DRS pension plan investments of 7.5 percent was determined using
a building-block-method. The Washington State Investment Board (WSIB) used a best estimate of expected future rates of return (expected returns, net of pension plan investment expense,
including inflation) to develop each major asset class. Those expected returns make up one component of WSIB’s capital market assumptions. The WSIB uses the capital market assumptions
and their target asset allocation to simulate future investment returns at various future times. The long-term expected rate of return of 7.5 percent approximately equals the median
of the simulated investment returns over a 50-year time horizon. Estimated Rates of Return by Asset Class Best estimates of arithmetic real rates of return for each major asset class
included in the pension plan’s target asset allocation as of June 30, 2015, are summarized in the table below. The inflation component used to create the table is 2.2 percent and represents
the WSIB’s most recent long-term estimate of broad economic inflation. Asset Class Target Allocation % Long-Term Expected Real Rate of Return Arithmetic Fixed Income 20% 1.70% Tangible
Assets 5% 4.40% Real Estate 15% 5.80% Global Equity 37% 6.60% Private Equity 23% 9.60% 100% Sensitivity of NPL The table below presents the City’s proportionate share of the net pension
liability calculated using the discount rate of 7.5 percent, as well as what the City’s proportionate share of the net pension liability would be if it were calculated using a discount
rate that is 1-percentage point lower (6.5 percent) or 1-percentage point higher (8.5 percent) than the current rate. 1% Decrease (6.5%) Current Discount Rate (7.5%) 1% Increase (8.5%)
PERS 1 $ 12,283,765 $ 10,089,313 $ 8,202,285 PERS 2/3 25,256,417 8,637,472 (4,087,031) LEOFF 1 (799,711) (1,250,031) (1,633,845) LEOFF 2 $ 3,648,893 $ (3,643,664) $ (9,131,590) Pension
Plan Fiduciary Net Position Detailed information about the State’s pension plans’ fiduciary net position is available in the separately issued DRS financial report.
City of Auburn: 2015 CAFR Notes to the Financial Statements 87 Pension Liabilities (Assets), Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related
to Pensions At June 30, 2015, the City reported a total pension liability of $18,726,785 for its proportionate share of the net pension liabilities as follows: Liability (or Asset) PERS
1 $ 10,089,313 PERS 2/3 8,637,472 LEOFF 1 (1,250,031) LEOFF 2 $ (3,643,664) The amount of the liability /(asset) reported above for LEOFF Plan 2 reflects a reduction for State pension
support provided to the City. The amount recognized by the City as its proportionate share of the net pension liability/(asset), the related State support, and the total portion of the
net pension liability/(asset) that was associated with the City were as follows: Liability (or Asset) LEOFF 2 – employer’s proportionate share $ (2,193,486) LEOFF 2 – State’s proportionate
share of the net pension liability/(asset) associated with the employer (1,450,178) TOTAL $ (3,643,664) At June 30, the City’s proportionate share of the collective net pension liabilities
was as follows: Proportionate Share 6/30/14 Proportionate Share 6/30/15 Change in Proportion PERS 1 0.196420% 0.192878% (0.003542)% PERS 2/3 0.242569% 0.241739% (0.00083)% LEOFF 1 0.105779%
0.103718% (0.002061)% LEOFF 2 0.348591% 0.354511% 0.00592% Employer contribution transmittals received and processed by the DRS for the fiscal year ended June 30 are used as the basis
for determining each employer’s proportionate share of the collective pension amount’s reported by the DRS in the Schedules of Employer and Nonemployer Allocations for all plans except
LEOFF 1. LEOFF Plan 1 allocation percentages are based on the total historical employer contributions to LEOFF 1 from 1971 through 2000 and the retirement benefit payments in fiscal
year 2015. Historical data was obtained from a 2011 study by the Office of the State Actuary (OSA). In fiscal year 2015, the state of Washington contributed 87.12 percent of LEOFF 1
employer contributions and all other employers contributed the remaining 12.88 percent of employer contributions. LEOFF 1 is fully funded and no further employer contributions have been
required since June 2000. If the plan becomes underfunded, funding of the remaining liability will require new legislation. The allocation method the plan chose reflects the projected
long-term contribution effort based on historical data. In fiscal year 2015, the state of Washington contributed 39.80 percent of LEOFF 2 employer contributions pursuant to RCW 41.27.726
and all other employers contributed the remaining 60.20 percent of employer contributions. The collective net pension liability (asset) was measured as of June 30, 2015, and the actuarial
valuation date on which the total pension liability (asset) is based was as of June 30, 2014, with update procedures used to roll forward the total pension liability to the measurement
date.
City of Auburn: 2015 CAFR Notes to the Financial Statements 88 Pension Expense For the year ended December 31, 2015, the City recognized pension expense as follows: Pension Expense PERS
1 $ 510,667 PERS 2/3 944,123 LEOFF 1 (231,464) LEOFF 2 226,501 TOTAL $ 1,449,827 Deferred Outflows of Resources and Deferred Inflows of Resources At December 31, 2015, the City reported
deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: PERS 1 Deferred Outflows of Resources Deferred Inflows of Resources Differences
between expected and actual experience $ -$ -Net difference between projected and actual investment earnings on pension plan investments -551,996 Changes of assumptions --Changes in
proportion and differences between contributions and proportionate share of contributions --Contributions subsequent to the measurement date 13,762 -TOTAL $ 13,762 $ 551,996 PERS 2/3
Deferred Outflows of Resources Deferred Inflows of Resources Differences between expected and actual experience $ 918,166 $ -Net difference between projected and actual investment earnings
on pension plan investments -2,305,796 Changes of assumptions 13,917 -Changes in proportion and differences between contributions and proportionate share of contributions -26,706 Contributions
subsequent to the measurement date 1,246,032 -TOTAL $ 2,178,115 $ 2,332,502 LEOFF 1 Deferred Outflows of Resources Deferred Inflows of Resources Differences between expected and actual
experience $ -$ -Net difference between projected and actual investment earnings on pension plan investments -211,030 Changes of assumptions --Changes in proportion and differences between
contributions and proportionate share of contributions --Contributions subsequent to the measurement date --TOTAL $ -$ 211,030
City of Auburn: 2015 CAFR Notes to the Financial Statements 89 LEOFF 2 Deferred Outflows of Resources Deferred Inflows of Resources Differences between expected and actual experience
$ 319,063 $ -Net difference between projected and actual investment earnings on pension plan investments -1,104,011 Changes of assumptions 9,611 -Changes in proportion and differences
between contributions and proportionate share of contributions -31,027 Contributions subsequent to the measurement date 283,992 -TOTAL $ 612,666 $ 1,135,038 Deferred outflows of resources
related to pensions resulting from the City’s contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended December
31, 2016. Other amounts reported as deferred outflows and deferred inflows of resources related to pensions will be recognized in pension expense as follows: Year ended December 31:
PERS 2/3 2016 $ (318,277) 2017 (318,277) 2018 (318,277) 2019 $ (127,311) Year ended December 31: LEOFF 2 2016 $ (130,059) 2017 (130,059) 2018 (130,059) 2019 (130,059) 2020 (130,059)
Thereafter $ (26,010) City of Auburn Fire Relief and Pension Plan The City is the administrator of the Firemen’s Pension Plan (Plan), which is a closed, single-employer defined benefit
pension plan that was established in conformance with RCW Chapters 41.16 and 41.18. This plan provided retirement and disability benefits, annual cost-of-living adjustments, and death
benefits to plan members and beneficiaries. Membership is limited to firefighters employed prior to March 1, 1970 when the LEOFF retirement system was established. The City’s obligation
under the Firemen’s Pension Plan consists of paying all benefits, including payments to beneficiaries and healthcare, for firefighters who retired prior to March 1, 1970, and excess
pension and healthcare benefits of LEOFF for covered firefighters who retired after March 1, 1970. Benefits and refunds of the defined benefit pension plan are recognized when due and
payable in accordance with the Plan. The Plan does not issue a separate financial report. The City has determined that GASB Statement No. 67 – Financial Reporting for Pension Plans;
an amendment of GASB Statement No. 25 does not apply to the City’s single-employer Fire Relief and Pension Fund as it does not meet the criteria applicability set by the statement as
the contributions to that fund are not irrevocable. Plan assets may be used for to cover medical expenses which are outside of the scope of the pension plan benefits. Therefore, the
Fire Relief and Pension Fund has been presented in conformance with GASB Statement No. 25 and Statement No. 50.
City of Auburn: 2015 CAFR Notes to the Financial Statements 90 Under state law, the Firemen’s Pension Plan is provided an allocation of 25% of all monies received by the state from taxes
on fire insurance premiums, interest earnings, member contributions made prior to the inception of LEOFF, and City contributions required to meet projected future pension obligations.
The actuary determined as of January 1, 2015 that no future City contributions would be required beyond future revenues from state fire insurance taxes and interest earnings. In 2015,
$75,702 was received from the state from taxes on fire insurance premiums, $5,065 was received from interest earnings. On-behalf payments of fringe benefits and salaries for the City’s
employees were recognized as revenues and expenditures/expenses during the period. Administrative costs, such as City staff time and actuarial valuation costs are funded from interest
earnings or City contributions. The required schedule of funding progress immediately following the notes to the financial statements presents multi-year trend information about whether
the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liability for benefits. Membership of the Firemen’s Pension Plan consisted
of 13 eligible, of which 11 are receiving benefits. Fiscal Actual Annual Required Percentage Annual Percentage Net Year Employer Contribution of ARC Pension Cost of APC Pension (Asset)
Ending Contributions* (ARC) Contributed (APC) Contributed Obligation December 31, 2004 (137,783) ( 91,881) N/A ( 90,143) N/A (122,820) December 31, 2005 (144,746) ( 78,690) N/A (76,827)
N/A (54,901) December 31, 2006 (149,327) ( 78,690) N/A (77,774) N/A 16,652 December 31, 2007 17,920 (5,048) N/A (5,420) N/A ( 6,688) December 31, 2008 12,167 (5,048) N/A (4,885) N/A
( 23,740) December 31, 2009 3 7,232 (78,233) N/A (77,503) N/A ( 138,475) December 31, 2010 4 9,049 (78,233) N/A (73,634) N/A (261,158) December 31, 2011 4 3,474 21,469 202% 30,859 140.88%
(273,773) December 31, 2012 48,380 21,469 225% 3 2,156 150.00% (289,997) December 31, 2013 52,326 70,351 74% 83,024 63.00% (259,299) December 31, 2014 297,177 70,351 422% 8 2,715 359.00%
( 473,761) December 31, 2015 55,966 4 7,670 117% 73,004 77.00% (456,723) *Employer Contributions for pensions are total contributions to the Fund net of disbursement from the Fund for
medical expenses under RCW 41.26.150 and administrative expenses. GASB STATEMENT No. 25 GASB STATEMENT No. 27 SCHEDULE OF EMPLOYER CONTRIBUTIONS THREE YEAR TREND INFORMATION
City of Auburn: 2015 CAFR Notes to the Financial Statements 91 The information presented in the preceding required schedules was determined as part of the actuarial valuations at the
date indicated. Fiscal ARC at Amort. Annual Total Year End of Interest on ARC Factor Pension Cost Employer Change in NPO (Asset) Ending Year (1) NPO (2) Adjustment * (APC) Contributions
NPO Balance (3) 12/31/2004 (91,881) (11,932) (13,670) 12.47% (90,143) (137,783) 47,640 (122,820) 12/31/2005 (78,690) (7,369) (9,232) 13.30% (76,827) (144,746) 67,919 (54,901) 12/31/2006
(78,690) (3,294) (4,210) 13.04% (77,774) (149,327) 71,553 16,652 12/31/2007 (5,048) 833 1,205 13.82% (5,420) 17,920 (23,340) (6,688) 12/31/2008 (5,048) (334) (497) 13.46% (4,885) 12,167
(17,052) (23,740) 12/31/2009 (78,233) (950) (1,680) 14.13% (77,503) 37,232 (114,735) (138,475) 12/31/2010 (78,233) (5,539) (10,138) 13.66% (73,634) 49,049 (122,683) (261,158) 12/31/2011
21,469 (10,446) (19,836) 13.17% 30,859 43,474 (12,615) (273,773) 12/31/2012 21,469 (10,951) (21,638) 12.65% 32,156 48,380 (16,224) (289,997) 12/31/2013 70,351 (10,875) (23,548) 12.32%
83,024 52,326 30,698 (259,299) 12/31/2014 70,351 (9,724) (22,088) 11.74% 82,715 297,177 (214,462) (473,761) 12/31/2015 47,670 (16,582) (41,916) 11.30% 73,004 55,966 17,038 (456,723)
(1) A change in consulting actuaries resulted in a recommended change in the actuarial methods and assumptions. (2) 7% interest rate was used for years prior to January 1, 2003-2004;
6% 2005-2006; 5% 2007-2008; 4% 2011-2012, 3.75% 2013, 3.5% 2014 -2015 Statement of Net Position prior to 2010. * Based on 30-year level-dollar closed amortization as of January 1, 1999.
** Assumed amounts will be replaced at year end with actual amounts. (3) The Net Pension Obligation (NPO) balance is reflected as part of Deferred Charges on the Government-wide GASB
STATEMENT No. 27 Annual Development of Pension Cost Valuation date: Actuarial cost method: Amortization method: Remaining amortization period: Asset valuation method: Actuarial Valuation
Info: Fair market value January 1, 2015 Entry age normal Level dollar amount 14 years 30-year, closed as of January 1, 1999 Inflation rate: 2.25% Investment rate of return: 3.50% Projected
salary increases: 3.25% Cost-of living adjustments: 2.50% Actuarial Assumptions
City of Auburn: 2015 CAFR Notes to the Financial Statements 92 NOTE 11 – OTHER POST-EMPLOYMENT BENEFITS In 2008, the city implemented GASB Statement 45, Accounting and Financial Reporting
by Employers for Post Employment Benefits Other Than Pensions. Plan Description The city is the administrator of the LEOFF 1 employees plan covering lifetime medical care. This plan
is a defined benefit healthcare plan, other post employment benefit plan (OPEB). The city is required to pay post employment benefits in accordance with Revised Code of Washington (RCW)
Chapter 41.16, all medical and long term care as long as a disability exists are covered for any active firefighter hired prior to March 1, 1970. For any retired firefighter hired prior
to March 1, 1970, medical and long term care are covered at the discretion of the Retirement Board. Members retired prior to 1961 for reasons other than duty disability are not eligible
for medical benefits during retirement. In 1970, LEOFF was established by the Legislature under RCW Chapter 41.26. LEOFF members who joined the system by September 30, 1977 are Plan
1 members. For Plan 1 members, the city is required to pay all healthcare expenses incurred by LEOFF 1 retirees. The City’s cost is reduced by any amounts retirees receive from Medicare
or other health plans. Funding Policy The funding policy is based upon the pay-as-you-go financing requirements paid out of the General fund. Membership As of December 31, 2015, there
was 1 active member and 53 retirees meeting the eligibility requirements of a LEOFF 1 member. This is considered a closed group with no new members. The one active member is employed
by the Valley Regional Fire Authority (VRFA) which is a separate governmental entity and the City is billed annually for their medical costs. Annual OPEB Cost and Net OPEB Obligation
The City’s annual other post employment benefit (OPEB) cost is calculated based upon the annual required contribution (ARC), an amount actuarially determined in accordance with the parameters
of GASB Statement 45. The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover the normal cost each year and amortize any unfunded actuarial liabilities
over a period of 21 years as of January 1, 2008. The following table shows the components of the City’s annual OPEB cost for the year, the amount actually contributed to the plan and
changes in the City’s net OPEB for LEOFF. Fiscal Year Ending Annual Required Contribution (ARC) 12/31/2013 12/31/2014 12/31/2015 1. Annual Normal Costs at beginning of year $ 101,456
$ 45,656 $ 45,656 2. Amortization of UAAL at beginning of year 2,011,425 2,168,028 2,168,028 3. Interest to end of year 84,515 71,945 71,945 4. ARC at end of year $ 2,197,396 $ 2,285,629
$ 2,285,629 5. Interest on Net OPEB Obligation 162,738 161,461 201,873 6. Adjustment to ARC 335,724 410,380 541,686 7. Annual OPEB Cost $ 2,024,410 $ 2,036,710 $ 1,945,816 8. Employer
Contributions 1,124,809 793,286 909,657 9. Change in Net OPEB Obligation 899,601 1,243,424 1,036,159 10. Net OPEB Obligation at beginning of year 4,068,439 4,968,040 6,211,464 11. Net
OPEB Obligation at end of year $ 4,968,040 $ 6,211,464 $ 7,247,623
City of Auburn: 2015 CAFR Notes to the Financial Statements 93 The net OPEB obligation of $7,247,623 is included as a non-current liability on the Statement of Net Position. The City’s
annual OPEB cost, the percentage of OPEB costs contributed to the plan, and the net OPEB obligation for 2015, 2014 and 2013 are as follows: Funded Status and Funding Progress As of January
1, 2014, the most recent actuarial valuation date, the plan was 0% funded. The accrued liability for benefits was $26.2 million, and the actuarial value of assets was $0, resulting in
a UAAL of $26.2 million. The required schedule of funding progress immediately following the notes to the financial statements presents multi-year trend information about whether the
actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liability for benefits. Actuarial valuations involve estimates of the value of
reported amounts and assumptions about the probability of occurrence of events far into the future. Examples include assumptions about future employment, mortality, and the healthcare
cost trend. Amounts determined regarding the funded status of the plan and the annual required contributions of the employer are subject to continual revision as actual results are compared
with past expectations and new estimates are made about the future. Actuarial Methods and Assumptions Projections of benefits for financial reporting purposes are based on the substantive
plan (the plan as understood by the employer and the plan members) and include the types of benefits provided at the time of each valuation. The actuarial methods and assumptions used
include techniques that are designed to reduce the effects of short-term volatility in actuarial accrued liabilities, consistent with the long-term perspective of the calculations. In
the January 1, 2014 actuarial valuation, the entry age normal actuarial cost method was used. The actuarial assumptions used included a 3.25% discount rate, which is based upon the long-term
investment yield on the investments that are expected to be used to finance the payment of benefits. The medical (healthcare) trend rate of 6.1% for pre-65 retirees and 6.2% for post-65
retirees is assumed and the inflation rate includes the dental inflation rate of 5.0% and long term care inflation rate of 4.75%. The UAAL is being amortized on a closed basis at the
assumed discount rate using the level dollar amortization method. The remaining amortization period at January 1, 2014 was 15 years. NOTE 12 – ASSOCIATION OF WASHINGTON CITIES EMPLOYEE
BENEFIT TRUST (“Trust”) Trust Description The City is a member of the Association of Washington Cities Employee Benefit Trust Health Care Program (AWC Trust HCP). Chapter 48.62 RCW provides
that two or more local government entities may, by Interlocal agreement under Chapter 39.34 RCW, form together or join a pool or organization for the joint purchasing of insurance, and/or
joint self-insurance, to the same extent that they may individually purchase insurance, or self-insure. Contributions as a Annual Percentage of Net OPEB Fiscal Year Ending OPEB Cost
Annual OPEB Cost Obligation December 31, 2015 $ 1,945,816 47% $ 7,247,623 December 31, 2014 2 ,036,710 39% 6 ,211,464 December 31, 2013 2,024,410 56% 4 ,968,040
City of Auburn: 2015 CAFR Notes to the Financial Statements 94 An agreement to form a pooling arrangement was made pursuant to the provisions of Chapter 39.34 RCW, the Interlocal Cooperation
Act. The AWC Trust HCP was formed on January 1, 2014 when participating cities, towns, and non-city entities of the AWC Employee Benefit Trust in the State of Washington joined together
by signing an Interlocal Governmental Agreement to jointly self-insure certain health benefit plans and programs for participating employees, their covered dependents and other beneficiaries
through a designated account within the Trust. As of December 31, 2015, 261 cities/towns/non-city entities participate in the AWC Trust HCP. The AWC Trust HCP allows members to establish
a program of joint insurance and provides health and welfare services to all participating members. The AWC Trust HCP pools claims without regard to individual member experience. The
pool is actuarially rated each year with the assumption of projected claims run-out for all current members. The AWC Trust HCP includes medical insurance through Regence BlueShield and
Asuris Northwest Health, dental insurance through Delta Dental of Washington, and vision insurance through Vision Service Plan. Eligible members are cities and towns within the state
of Washington. Non-City Entities (public agency, public corporation, intergovernmental agency, or political subdivision within the state of Washington) are eligible to apply for coverage
into the AWC Trust HCP, submitting application to the Board of Trustees for review as required in the Trust Agreement. Participating employers pay monthly premiums to the AWC Trust HCP.
The AWC Trust HCP is responsible for payment of all covered claims. The AWC Trust HCP purchases stop loss insurance for Regence/Asuris plans at an Individual Stop Loss (ISL) of $1.5
million through Life Map, and Group Health ISL at $750,000 through Sun Life. The aggregate policy is for 200% of expected medical claims. Participating employers contract to remain in
the AWC HCP for a minimum of three years. Participating employers with over 250 employees must provide written notice of termination of all coverage a minimum of 12 months in advance
of the termination date, and participating employers with under 250 employees must provide written notice of termination of all coverage a minimum of 6 months in advance of termination
date. When all coverage is being terminated, termination will only occur on December 31. Participating employers terminating a group or line of coverage must notify the HCP a minimum
of 60 days prior to termination. A participating employer’s termination will not obligate that member to past debts, or further contributions to the HCP. Similarly, the terminating member
forfeits all rights and interest to the HCP Account. The operations of the Health Care Program are managed by the Board of Trustees or its delegates. The Board of Trustees is comprised
of four regionally elected officials from Trust member cities or towns, the Employee Benefit Advisory Committee Chair and Vice Chair, and two appointed individuals from the AWC Board
of Directors, who are from Trust member cities or towns. The Trustees or its appointed delegates review and analyze Health Care Program related matters and make operational decisions
regarding premium contributions, reserves, plan options and benefits in compliance with Chapter 48.62 RCW. The Board of Trustees has decision authority consistent with the Trust Agreement,
Health Care Program policies, Chapter 48.62 RCW and Chapter 200-110-WAC. The accounting records of the Trust HCP are maintained in accordance with methods prescribed by the State Auditor’s
office under the authority of Chapter 43.09 RCW. The Trust HCP also follows applicable accounting standards established by the Governmental Accounting Standards Board (“GASB”). Year-end
financial reporting is done on an accrual basis and submitted to the Office of the State Auditor as required by Chapter 200-110 WAC. The audit report for the AWC Trust HCP is available
from the Washington State Auditor’s office Funding Policy The Trust provides that contribution requirements of Participating Employers and of participating employees, retirees and other
beneficiaries, if any, are established and may be amended by the Board of Trustees of the Trust. Retirees of
City of Auburn: 2015 CAFR Notes to the Financial Statements 95 the City receiving medical benefits from the Trust contribute up to $871.51 per month for non-Medicare enrolled retiree-only
coverage, $1,750.63 for non-Medicare enrolled retiree and spouse coverage, $1,214.45 for Medicare enrolled retiree and non-Medicare enrolled spouse (or non-Medicare enrolled retiree
and Medicare-enrolled spouse) and $670.66 for Medicare-enrolled retiree and spouse coverage. Participating Employers are not contractually required to contribute an assessed rate each
year by the Trust for non-LEOFF 1 retirees. The retire pays for 100% of the premium. NOTE 13 – CONSTRUCTION COMMITMENTS At December 31, 2015, the City had the following contractual obligations
on construction projects: SCHEDULE OF OUTSTANDING CONSTRUCTION OBLIGATIONS As of December 31, 2015Amount Outstanding Street projects $ 690,429 Utilities projects 4,076,957 Other projects
5,040,449 Total commitments $ 9,807,835 NOTE 14 – CEMETERY ENDOWED CARE FUND The City maintains one permanent fund known as the cemetery endowed care fund. Paid into this fund is 10%
of the base, pre-tax sales price of each grave, niche or crypt. This fund is irreducible in principal and no part of the income of this fund shall ever be used for purposes other than
those specified upon the creation of the fund. RCW 68.44.020 restricts the use of endowment net appreciation to endowment care “stipulated in the instrument by which the fund was established”.
For the City, the instrument that established the fund is Auburn City Code section 3.04.080, and section 3.040.120 governs the use of the fund. ACC 3.04.120 restricts net interest or
income from investments to the care of the lots and in the improvement or embellishment of the cemetery or the erection or preservation of any buildings or structures, fences or walks,
or for the repair, preservation, erection or renewal of any tomb, monument, grave, stone, fence, railing or other erection in or around the cemetery. The funds may also be used for planting
and cultivating trees, shrubs, flowers or plants in or around the cemetery. All expenditures of income from the fund must first be authorized by the City Council. For 2015, of the $5,073
net appreciation on investments, all was available for expenditures. Amounts that are available for expenditure are reflected as assigned fund balance. NOTE 15 – JOINT VENTURES /RELATED
PARTY Valley Communications Center The “Valley Communications Center” was established August 20, 1976, when an Interlocal Agreement was entered into by four participating municipal corporations:
Renton, Kent, Auburn and Tukwila. The provisions and terms of the “Interlocal Cooperation Act”, pursuant to RCW 39.34, sanction the agreement. The initial duration of the agreement was
five years and thereafter is automatically extended for consecutive two-year periods, unless terminated by one or more of the participating cities. Any such termination must be in writing
and served upon the other cities on or before July 1 in any one year and such termination shall then become effective on the last day of such year.
City of Auburn: 2015 CAFR Notes to the Financial Statements 96 On August 4, 1999 the Administration Board of Valley Communications Center voted to include the City of Federal Way as
a full participating member city as of January 1, 2000. The five participating municipal corporations that include the cities of Renton, Kent, Auburn, Tukwila, and Federal Way on April
17, 2000 entered into a new Interlocal Agreement, pursuant to RCW 39.34, et seq. This agreement reaffirmed Valley Communications Center as a governmental administration agency pursuant
to RCW 39.34.030 (3) (b). The purpose of the joint operation, hereafter referred to as Valley Com, is to provide improved consolidated emergency communications (dispatch) services for
police, fire and medical aid to the five participating cities and to the several subscribing agencies, which include King County Fire Districts #2, #20, #40, #43, #44, #47, Black Diamond
Fire Department, Vashon Island Fire Department, City of Pacific Police and Fire Departments, City of Algona Police Department, City of Black Diamond Police Department, City of Des Moines
Police Department, SeaTac Fire Department, North Highline Fire Department, and King County EMS Units. In 1988, King County Fire District #1 was annexed to the City of Tukwila. A separate
agreement between Valley Com and the subscribing agencies has been executed, which set forth condition of services and rates charged. The participating cities provide the majority of
revenues to Valley Com. The method of allocating revenue source was changed in 1990 to a basis of prior year’s calls with actual first and second quarter and estimated third and fourth
quarter calls. The allocation of prorated financial participation among the five participating cities is the percentage of estimated dispatched calls attributed to each jurisdiction
compared to the total actual and estimated dispatched calls, for the period for January 1 through December 31. The percentages are applied to the current approved budget, less revenue
from subscribing agencies and all other sources. The 2015 cost distribution for the five participating cities is as follows: Dispatchable Percent of Calls Total * Kent 107,575 27.15%
Renton 78,046 19.69% Auburn 92,008 23.22% Tukwila 34,477 8.70% Federal Way 84,170 21.24% Total 396,276 100.00% * Distribution of current year net income is based on these budgeted percentages.
Valley Com is served by an Administration Board composed of the Mayors or designated representatives from the five participating cities of Renton, Kent, Auburn, Tukwila and Federal Way.
The Administration Board is responsible for the following functions: 1) Budget review and recommendation to the legislative bodies of the participating cities, and budget adoption after
each legislative body has approved the required financial participation for the ensuing year; 2) Approval of appointment and/or discharge of the Director; 3) Approval of personnel policy
and final decisions on all major policy changes; 4) Review and approval of all contracts. In addition, an Operations Board provides direction and consists of two members of each participating
City’s public safety departments, including the heads of such departments or their designees. The Operations Board performs the following functions: 1) Oversees the operation of Valley
Com, advises and makes recommendations to the Administration Board; 2) Makes recommendations on Director selection; 3) Presents proposed policies and budget to the Administration Board;
4) Approves disbursement of funds by the Director.
City of Auburn: 2015 CAFR Notes to the Financial Statements 97 The Director presents a proposed budget to the Operations Board on or before August 15 of each year. Said budget is then
presented to the Administration Board by September 1 of each year. The Administration Board can make changes to the proposed Valley Com budget as it finds necessary, but final approval
falls to the legislative body of each participating city in accordance with the provisions of the Interlocal Agreement. In August 1993, Valley Com entered into an Interlocal Cooperation
Agreement, pursuant to Chapter 39.34 RCW, with the sub-regions of King County, Seattle and Eastside Public Safety Communications Agency (EPSCA). This agreement governs the development,
acquisition and installation of the 800 MHz emergency radio communications system (system) funded by the $57 million King County levy. This agreement provides that upon voluntary termination
of any sub-region participation in the system, it surrenders its radio frequencies, relinquishes its equipment and transfers any unexpended levy proceeds and association equipment replacement
reserves to another sub-region or consortium of sub-regions. The share of equity belonging to the five participating cities is as follows: Item Kent Renton Auburn Tukwila Federal Way
Total Equity Dec 31, 2014 $ 4,889,877 $ 3,474,017 $ 3,298,133 $1,931,257 $ 2,350,496 $ 1 5,943,780 Current year change 649,015 470,862 555,097 208,004 507,809 2,390,787 Equity Dec 31,
2015 $ 5,538,892 $ 3,944,879 $ 3,853,230 $ 2,139,261 $ 2,858,305 $ 18,334,567 % of equity 30.21% 21.52% 21.02% 11.67% 15.59% % of 2015 distribution 27.15% 19.69% 23.22% 8.70% 21.24%
Liabilities are the responsibility of the five participating cities in direct proportion to their equity position. Complete audited financial statements for Valley Communications Center
can be obtained from Valley Communications Center, 27519 108th Ave SE, Kent, WA 98030, or telephone 253-372-1300. South Correctional Entity (SCORE) The South Correctional Entity (SCORE)
consolidated correctional facility was established February 25, 2009, when an Interlocal Agreement (the “Original Interlocal Agreement”) was entered into by seven participating municipal
governments, the “Member Cities” of Auburn, Burien, Des Moines, Federal Way, Renton, SeaTac and Tukwila, under the authority of the “Interlocal Cooperation Act” (RCW 39.34). This “Original
Interlocal Agreement” was amended and restated October 1, 2009 and named the City of Des Moines as the “Host City” and the remaining Member Cities as “Owner Cities”. This interlocal
agreement is known as the “Formation Interlocal Agreement”. Pursuant to a separate “Host City Agreement” dated October 1, 2009, the Host City will not enjoy the same equity position
as the Owner Cities until all debts issued are paid and the Host City fulfills all of its obligations as outlined in the Host City Agreement. Pursuant to SCORE financial policies, all
unexpected funds or reserve funds shall be distributed based on the percentage of the Member City’s average daily population at the SCORE Facility for the last three (3) years regardless
of its Owner City or Host City status. SCORE, a governmental administrative agency pursuant to RCW 39.34.030(3), has the power to acquire, construct, own, operate, maintain, equip, and
improve a correctional facility known as the “SCORE Facility” and to provide correctional services and functions incidental thereto, for the purpose of detaining arrestees and sentenced
offenders in the furtherance of public safety and emergencies within the jurisdiction of the Member Cities. The SCORE Facility may serve the Member Cities and Subscribing Agencies which
are in need of correctional facilities. Any agreement with a Subscribing Agency shall be in writing and approved by SCORE as provided within the SCORE Formation Interlocal Agreement.
City of Auburn: 2015 CAFR Notes to the Financial Statements 98 Financing for the acquisition, construction, equipping, and improvement of the SCORE Facility was provided by bonds issued
by the South Correctional Entity Facility Public Development Authority (the “SCORE PDA”), a public development authority chartered by the City of Renton pursuant to RCW 35.21.730 through
35.21.755. The SCORE PDA issued $86 million in special obligation bonds in 2009 (the “Bonds”) to construct, develop, acquire and equip the SCORE Facility. Pursuant to the Formation Interlocal
Agreement and the ordinances of each city, each Owner City (which includes the Cities of Auburn, Burien Federal Way, Renton, SeaTac, and Tukwila) is obligated to budget for and pay its
share, and only its share, of the principal of and interest on the Bonds as the same become due and payable. Each Owner City’s obligation to pay its portion is an irrevocable, unconditional
full faith and credit obligation of such Owner City, payable from property taxes levied within the constitutional and statutory authority provided without a vote of the electors of the
Owner City on all of the taxable property within the Owner City and other sources of revenues available therefor. The following is a summary of the debt service requirements for the
Bonds: BABs Auburn Burien Federal Way Renton SeaTac Tukwila Year Principal Interest Subsidy Total 31% 4% 18% 36% 3% 8% 2016 $ 2,065,000 $ 4,911,886 $ (1,517,676) $ 5,459,210 $ 1,692,355
$ 218,368 $ 982,658 $ 1,965,316 $ 163,776 $ 436,737 2017 2,145,000 4,820,241 (1,511,685) 5,453,556 1,690,602 218,142 981,640 1,963,280 163,607 436,284 2018 2,240,000 4,715,979 (1,511,685)
5,444,294 1,687,731 217,772 979,973 1,959,946 163,329 435,544 2019 2,310,000 4,602,229 (1,475,151) 5,437,078 1,685,494 217,483 978,674 1,957,348 163,112 434,966 2020 2,385,000 4,484,854
(1,437,475) 5,432,379 1,684,037 217,295 977,828 1,955,656 162,971 434,590 2021-2025 13,405,000 20,377,998 (7,109,462) 26,673,536 8,268,796 1,066,941 4,801,236 9,602,473 800,206 2,133,883
2026-2030 16,325,000 15,803,611 (5,715,798) 26,412,813 8,187,972 1,056,513 4,754,306 9,508,613 792,384 2,113,025 2031-2035 20,095,000 9,856,351 (3,682,383) 26,268,968 8,143,380 1,050,759
4,728,414 9,456,828 788,069 2,101,517 2036-2039 19,410,000 2,636,145 (1,147,380) 20,898,765 6,478,617 835,951 3,761,778 7,523,555 626,963 1,671,901 Totals $ 80,380,000 $ 72,209,294 $
(25,108,695) $ 127,480,599 $ 39,518,984 $ 5,099,224 $ 22,946,507 $ 45,893,015 $ 3,824,417 $ 10,198,447 Summary of Debt Service Requirements Debt Service Schedule Debt Service Allocation
to Owner Cities The City of Auburn reports its share of equity interest in the Governmental Activities column within the Governmentwide financial statements under non-current assets.
The following is condensed (unaudited) financial information as of December 31, 2015 related to SCORE: Member City Percent of Equity 2014 Equity Balance Prior Period Adjustment 2015
Apportionment 2015 Equity Balance Auburn 30.00% $ 4,243,235 $ (1,048,625) $ 137,167 $ 3,331,777 Burien 3.00% 515,410 (155,837) 17,268 376,841 Des Moines 2.00% 292,161 (113,182) 18,288
197,267 Federal Way 24.00% 3,676,724 (1,204,461) 148,312 2,620,575 Renton 29.00% 4,220,405 (1,134,356) 136,621 3,222,670 SeaTac 5.00% 712,666 (240,723) 26,524 498,467 Tukwila 7.00% 1,080,470
(326,032) 34,103 788,541 Grand Totals 100.00% $ 14,741,071 $ (4,223,216) $ 518,283 $ 11,036,138 South Correctional Entity (SCORE) 2015 Member Cities Equity Allocation Completed financial
statements for SCORE and SCORE PDA can be obtained at SCORE, 20817 17th Avenue South, Des Moines, WA 98198. Since the obligation to fund future joint venture-related debt is separately
reported as due to other governments, the investment in joint ventures is reported as a combination of this debt with the current reported equity in joint ventures as follows: Balance
GASB 68 Restated Additions Reductions Balance 12/31/2014 Adjustment Balance 12/31/2015 Valley Communication Public Dev Auth $ 2 20,000 $ -$ 2 20,000 $ -$ ( 220,000) $ -SCORE Public Development
Authority 2 4,917,800 -2 4,917,800 -( 640,150) 24,277,650 Due to Other Governments 2 5,137,800 -2 5,137,800 -( 860,150) 24,277,650 Valley Communications Center 5 ,079,377 ( 1,781,244)
3 ,298,133 5 55,096 -3 ,853,229 South Correctional Entity (SCORE) 4 ,243,234 ( 1,048,624) 3 ,194,610 1 37,167 -3 ,331,777 Equity Share 9,322,611 ( 2,829,868) 6,492,743 692,263 -7,185,006
Total Investment in Joint Ventures $ 31,462,656 Investment in Joint Ventures
City of Auburn: 2015 CAFR Notes to the Financial Statements 99 NOTE 16 – JOINTLY GOVERNED ORGANIZATION /RELATED PARTY Residents of the cities of Auburn, Algona and Pacific approved in
the November 7, 2006 general election the creation of a regional fire authority pursuant to RCW 52.26. The new regional fire protection service authority, called the Valley Regional
Fire Authority (VRFA), provides first responder fire and emergency medical services to residents of Auburn, Algona and Pacific. The VRFA is a new municipal corporation, with its own
Governing Board, and is legally separate from the three cities it serves. The Governing Board of the VRFA consists of the Mayors of the three cities within the VRFA service area, as
well as two Councilmembers from each city. Membership on the Governing Board is made by appointment from the city council of the respective member cities. Effective January 1, 2007,
all personnel, assets, equipment and contractual obligations of the former Auburn Fire Department were transferred to the VRFA. Similar transfers were made by the cities of Algona and
Pacific. In accordance with the interlocal agreement at time of formation, each member city retained its obligation for LEOFF 1 firefighter and Fire Relief and Pension Plan obligations.
During 2015 Auburn paid $8,748, for the employer’s share of active LEOFF 1 firefighter medical premiums and benefit payments. Premium and benefit payments for retired LEOFF 1 firefighters
for 2015 were $186,860. Medical premiums and benefit payments made under the Fire Relief and Pension Plan for 2015 were $119,698. NOTE 17 – CONTINGENCIES AND LITIGATIONS As of December
31, 2015, a number of claims were pending against the City for damages and legal actions. While the outcome of these actions is uncertain, no uncovered losses are anticipated at this
time with these pending claims. In the event of a liability finding against the City, it is anticipated that any potential adverse judgment against the City also would be subject to
coverage under the City’s general liability insurance. The City participates in a number of federal and state assisted programs. These grants are subject to audit by the grantors or
their representatives. Such audits could result in requests for reimbursement to grantor agencies for expenditures disallowed under the terms of the grants. The City’s management believes
that such disallowances, if any, will be immaterial. NOTE 18 – RISK MANAGEMENT & INSURANCE Risk Management The City is exposed to various risks of loss such as: theft and damage and
destruction of assets, errors and omissions, injuries or property damage to others, employees’ health, and natural disasters. All risk financing activities are accounted for in the Insurance
internal service fund. To insure against risks of loss the City of Auburn is a member of the Washington Cities Insurance Authority (WCIA). Utilizing Chapter 48.62 RCW (self-insurance
regulation) and Chapter 39.34 RCW (Interlocal Cooperation Act), nine cities originally formed WCIA on January 1, 1981. WCIA was created for the purpose of providing a pooling mechanism
for jointly purchasing insurance, jointly self-insuring, and /or jointly contracting for risk management services. WCIA has a total of 179 Members. New members initially contract for
a three-year term, and thereafter automatically renew on an annual basis. A oneyear withdrawal notice is required before membership can be terminated. Termination does not relieve a
former member from its unresolved loss history incurred during membership. Liability coverage is written on an occurrence basis, without deductibles. Coverage includes general, automobile,
police, public officials’ errors or omissions, stop gap, and employee benefits liability. Limits are $4 million per occurrence self-insured layer, and $16 million per occurrence in the
re-insured excess layer. The excess layer is insured
City of Auburn: 2015 CAFR Notes to the Financial Statements 100 by the purchase of reinsurance and insurance and is subject to aggregate limits. Total limits are $20 million per occurrence
subject to aggregate sublimits in the excess layers. The Board of Directors determines the limits and terms of coverage annually. Insurance coverage for property, automobile physical
damage, fidelity, inland marine, and boiler and machinery are purchased on a group basis. Various deductibles apply by type of coverage. Property insurance and auto physical damage are
self-funded from the members’ deductible to $750,000, for all perils other than flood and earthquake, and insured above that amount by the purchase of insurance. In-house services include
risk management consultation, loss control field services, claims and litigation administration, and loss analyses. WCIA contracts for the claims investigation consultants for personnel
issues and land use problems, insurance brokerage, and lobbyist services. WCIA is fully funded by its members, who make annual assessments on a prospectively rated basis, as determined
by an outside, independent actuary. The assessment covers loss, loss adjustment, and administrative expenses. As outlined in the interlocal, WCIA retains the right to additionally assess
the membership for any funding shortfall. An investment committee, using investment brokers, produces additional revenue by investment of WCIA’s assets in financial instruments which
comply with all State guidelines. A Board of Directors governs WCIA, which is comprised of one designated representative from each member. The Board elects an Executive Committee and
appoints a Treasurer to provide general policy direction for the organization. The WCIA Executive Director reports to the Executive Committee and is responsible for conducting the day
to day operations of WCIA. No settlement has exceeded insurance coverage over the past three years. Workers’ Compensation Title 51 RCW requires the City to ensure payment of benefits
for job-related injuries and diseases through the Workers’ Compensation fund or through self-insurance. The City become self-insured for worker’s compensation in 2014. Contributions
are made from the operating funds. At December 31, 2015 fund equity was $772,416. NOTE 19 – SUBSEQUENT EVENTS On March 23, 2016 the City issued a refunding bond in the amount of $3,867,214.
The refunding bond proceeds were used to establish an escrow fund and refund $680,000 (par value) of the 2005 LTGO and $3,005,000 (par value) of the 2006A LTGO’s. The 2005 LTGO was refunded
in its entirety and the 2006A bonds were partially refunded, leaving one $265,000 (par value) payment due on December 1, 2016. The Net Present Value Savings achieved was $395,656 or
10.23%. The refunding bond proceeds were applied as follows: The refunding bond matures on 12/31/2025.
City of Auburn: 2015 CAFR Required Supplemental Information 101 REQUIRED SUPPLEMENTARY INFORMATION Schedule of Proportionate Share of the Net Pension Liability PERS 1 As of June 30,
2015 Last 10 Fiscal Years* 2015 Employer's proportion of the net pension liability (asset) 0.192878% Employer's proportionate share of the net pension liability $ 10,089,313 Employer's
covered employee payroll $ 328,015 Employer's proportionate share of the net pension liability as a percentage of covered employee payroll 3075.87% Plan fiduciary net position as a percentage
of the total pension liability 59.10% * Information available for 2015 only Schedule of Proportionate Share of the Net Pension Liability PERS 2/3 As of June 30, 2015 Last 10 Fiscal Years*
2015 Employer's proportion of the net pension liability (asset) 0.241739% Employer's proportionate share of the net pension liability $ 8,637,472 Employer's covered employee payroll
$ 21,460,504 Employer's proportionate share of the net pension liability as a percentage of covered employee payroll 40.25% Plan fiduciary net position as a percentage of the total pension
liability 89.20% * Information available for 2015 only
City of Auburn: 2015 CAFR Required Supplemental Information 102 REQUIRED SUPPLEMENTARY INFORMATION Schedule of Proportionate Share of the Net Pension Liability LEOFF 1 As of June 30,
2015 Last 10 Fiscal Years* 2015 Employer's proportion of the net pension liability (asset) 0.103718% Employer's proportionate share of the net pension liability $ (1,250,031) Employer's
covered employee payroll $ 0 Employer's proportionate share of the net pension liability as a percentage of covered employee payroll 0.00% Plan fiduciary net position as a percentage
of the total pension liability 127.36% * Information available for 2015 only Schedule of Proportionate Share of the Net Pension Liability LEOFF 2 As of June 30, 2015 Last 10 Fiscal Years*
2015 Employer's proportion of the net pension liability (asset) 0.354511% Employer's proportionate share of the net pension liability $ (2,193,486) State's proportionate share of the
net pension liability (asset) associated with the employer $ (1,450,178) TOTAL $ (3,643,664) Employer's covered employee payroll $ 10,336,409 Employer's proportionate share of the net
pension liability as a percentage of covered employee payroll 0.00% Plan fiduciary net position as a percentage of the total pension liability 111.67% * Information available for 2015
only
City of Auburn: 2015 CAFR Required Supplemental Information 103 REQUIRED SUPPLEMENTARY INFORMATION Schedule of Employer Contributions PERS 1 As of December 31 2015 Last 10 Fiscal Years*
2015 Statutorily or contractually required contributions $ 30,642 Contributions in relation to the statutorily or contractually required contributions $ (30,642) Contribution deficiency
(excess) $ 0 Covered employer payroll $ 306,408 Contributions as a percentage of covered employee payroll 10.00% * Information available for 2015 only Schedule of Employer Contributions
PERS 2/3 As of December 31 2015 Last 10 Fiscal Years* 2015 Statutorily or contractually required contributions $ 2,258,109 Contributions in relation to the statutorily or contractually
required contributions $ (2,258,109) Contribution deficiency (excess) $ 0 Covered employer payroll $ 22,130,501 Contributions as a percentage of covered employee payroll 10.20% * Information
available for 2015 only
City of Auburn: 2015 CAFR Required Supplemental Information 104 REQUIRED SUPPLEMENTARY INFORMATION Schedule of Employer Contributions LEOFF 2 As of December 31 2015 Last 10 Fiscal Years*
2015 Statutorily or contractually required contributions $ 551,812 Contributions in relation to the statutorily or contractually required contributions $ (551,812) Contribution deficiency
(excess) $ 0 Covered employer payroll $ 10,553,437 Contributions as a percentage of covered employee payroll % 5.23% * Information available for 2015 only
City of Auburn: 2015 CAFR Required Supplemental Information 105 The information presented in the following required schedules was determined as part of the actuarial valuations at the
dates indicated. Firefighter’s Pension Fund January 1, 2015 Unfunded Actuarial Actuarial UAAL as a Actuarial Accrued Accrued Percentage Actuarial Value Liabilities -Liabilities Funded
Covered of Covered Valuation Date of Assets Entry Age (UAAL) Ratio Payroll Payroll January 1, 2003 3,514 2,428 (1,086) 144.73% 61 (1780%) January 1, 2005 3 ,160 2,172 ( 988) 145.00%
64 (1544%) January 1, 2007 2,868 2,802 ( 66) 102.00% -N/A January 1, 2009 2,941 1,878 (1,063) 157.00% -N/A January 1, 2011 2,780 3,052 2 72 91.00% -N/A January 1, 2013 2,552 3,387 8
35 75.00% -N/A January 1, 2015 2,609 3,130 521 83.00% -N/A This plan primarily covers inactive participants. There are no current member contributions. GASB STATEMENTS No. 25, No. 27
and No. 50 SCHEDULE OF FUNDING PROGRESS (rounded to thousands) Annual Required Percentage Year Ending Employer Fire Insurance Total Employer Contributions of ARC 12/31 Contributions*
Premiums Contributions* (ARC) Contributions 2010 ( 14,496) 63,545 4 9,049 (78,233) N/A 2011 ( 22,901) 66,375 4 3,474 21,469 202% 2012 ( 14,825) 63,205 4 8,380 21,469 225% 2013 (17,710)
70,036 5 2,326 70,351 74% 2014 219,619 77,558 297,177 70,351 422% 2015 ( 19,736) 75,702 5 5,966 47,670 117% * Employer contributions for pensions are total contributions to the Fund
net of disbursements from the Fund for medical expenses under RCW 41.26.150 and administrative expenses. GASB STATEMENT No. 25 SCHEDULE OF EMPLOYER CONTRIBUTIONS
City of Auburn: 2015 CAFR Required Supplemental Information 106 Retiree Medical and Long-Term Care Benefits For LEOFF 1 Employees December 31, 2015 Unfunded Actuarial UAAL as a Actuarial
Actuarial Accrued Percentage Actuarial Value Accrued Liabilities Funded Covered of Covered Valuation Date of As s ets Liabilities (UAAL ) Ratio Payroll Payroll January 1 , 2008 -20,738
20,738 0% N/A N/A January 1 , 201 1 -26,482 26,482 0% N/A N/A January 1 , 201 4 -26,246 26,246 0% N/A N/A GAS B S TATEMENTS No. 43 and No. 45 (rounded to thous ands ) S CHEDULE OF FUNDING
PROGRES S Annual Required Year Ending Employer Contribution Percentage of 12/31 Contributions (ARC) ARC Contributed 2010 1,048,494 1 ,712,223 61% 2011 1,095,684 2,197,396 50% 2012 1,104,259
2,197,396 50% 2013 1,124,809 2,197,396 51% 2014 793,286 2 ,285,629 35% 2015 909,657 2 ,285,629 40% GASB STATEMENT No. 43 SCHEDULE OF EMPLOYER CONTRIBUTIONS
City of Auburn: 2015 CAFR Fund Financial Statements and Schedules 107 NON-MAJOR GOVERNMENTAL FUNDS The City has four types of Non-Major Governmental Funds. Special Revenue Funds Special
revenue funds account for the proceeds of specific revenue sources and are segregated into individual funds to ensure that expenditures are made exclusively for qualified purposes. Special
revenue funds are accounted for on a modified accrual basis. Biennial budgets are adopted with appropriations lapsing at year-end. Debt Service Funds Debt service funds account for payments
of principal and interest on general obligation and special assessment long-term debt. Capital Project Funds Capital project funds account for the City of Auburn's financial resources
used for the acquisition or construction of major non-proprietary capital facilities. Permanent Funds Permanent funds are used to report resources that are legally restricted to the
extent that only earnings, and not principal, may be used for purposes that support City programs that are for the benefit of the City or its citizens.
City of Auburn: 2015 CAFR Fund Financial Statements and Schedules 10 8 Total Total Total Total Total Nonmajor Nonmajor Nonmajor Nonmajor Nonmajor Special Revenue Debt Service Capital
Projects Permanent Governmental Funds Funds Funds Funds Funds ASSETS: Cash and Cash Equivalents $ 10,397,399 $ 13,278 $ 782,858 $ 1,686,280 $ 12,879,815 Receivables: Customer Accounts
132,013 ---132,013 Other Receivables 325,941 ---325,941 Special Assessments -15,899 --15,899 Due From Other Governmental Units 109,598 -1,642,813 -1,752,411 Total Assets 10,964,951 29,177
2,425,671 1,686,280 15,106,079 LIABILITIES, DEFERRED INFLOWS AND FUND BALANCES: Liabilities: Current Payables 186,885 -897,180 -1,084,065 Interfund Payable (Note 5) --400,000 -400,000
Other Liabilities Payable 118,137 ---118,137 Total Liabilities 305,022 -1,297,180 -1,602,202 Deferred Inflow of Resources: Unavailable Revenue-Special Assessments -15,899 --15,899 Total
Deferred Inflow of Resources -15,899 --15,899 Fund Balances: Nonspendable ---1,585,707 1,585,707 Restricted 6,633,154 13,278 663,940 -7,310,372 Committed 3,658,719 ---3,658,719 Assigned
368,056 -464,551 100,573 933,180 Total Fund Balances 10,659,929 13,278 1,128,491 1,686,280 13,487,978 Total Liabilities, Deferred Inflows and Fund Balances $ 10,964,951 $ 29,177 $ 2,425,671
$ 1,686,280 $ 15,106,079 December 31, 2015 City of Auburn, Washington COMBINING BALANCE SHEET NON-MAJOR GOVERNMENT FUNDS
City of Auburn: 2015 CAFR Fund Financial Statements and Schedules 10 9 Total Total Total Total Total Nonmajor Nonmajor Nonmajor Nonmajor Nonmajor Special Revenue Debt Service Capital
Projects Permanent Governmental REVENUES: Taxes: Property $ -$ -$ 137,690 $ -$ 137,690 Retail Sales & Use 2,296,863 255,695 --2,552,558 Interfund Utility 608,690 ---608,690 Utility 1,389,924
---1,389,924 Excise 111,126 ---111,126 Other 70,972 ---70,972 Intergovernmental 524,876 499,547 2,422,479 -3,446,902 Charges for Services 2,284,182 -10,409 41,559 2,336,150 Special Assessments
-7,494 --7,494 Investment Earnings 16,643 1,816 959 5,073 24,491 Miscellaneous 91,374 -42,944 -134,318 Total Revenues 7,394,650 764,552 2,614,481 46,632 10,820,315 EXPENDITURES: Current:
Security of Persons & Property 676,684 ---676,684 Transportation 6,427,552 ---6,427,552 Economic Environment 548,275 ---548,275 Cultural and Recreation --49 -49 Debt Service: Principal
-1,245,677 --1,245,677 Interest -1,743,813 --1,743,813 Capital Outlay --3,036,516 -3,036,516 Total Expenditures 7,652,511 2,989,490 3,036,565 -13,678,566 Excess (Deficiency) of Revenues
Over (Under) Expenditures (257,861) (2,224,938) (422,084) 46,632 (2,858,251) OTHER FINANCING SOURCES (USES) : Transfers In (Note 5) 750,000 2,227,252 464,866 -3,442,118 Transfers Out
(Note 5) (775,627) (23,892) -(30,000) (829,519) Total Other Financing Sources (Uses) (25,627) 2,203,360 464,866 (30,000) 2,612,599 Net Change in Fund Balances (283,488) (21,578) 42,782
16,632 (245,652) Fund Balances -Beginning 10,943,417 34,856 1,085,709 1,669,648 13,733,630 Fund Balances -Ending $ 10,659,929 $ 13,278 $ 1,128,491 $ 1,686,280 $ 13,487,978 City of Auburn,
Washington COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES NON-MAJOR GOVERNMENT FUNDS For the Year Ended December 31, 2015
City of Auburn: 2015 CAFR Fund Financial Statements and Schedules 11 0
City of Auburn: 2015 CAFR Fund Financial Statements and Schedules 11 1 NON-MAJOR GOVERNMENTAL FUNDS SPECIAL REVENUE FUNDS Special revenue funds account for the proceeds of specific revenue
sources and are segregated into individual funds to ensure that expenditures are made exclusively for qualified purposes. Special revenue funds are accounted for on a modified accrual
basis. Annual budgets are adopted with appropriations lapsing each year of the biennium. The City has eight non-major special revenue funds. The Local Street Fund This fund was created
when Auburn voters approved the Save Our Streets lid lift in 2004 and is used to account for all revenues and expenditures related to this initiative. Hotel/Motel Tax Fund This fund
was created to account for the hotel/motel taxes levied to support City tourist promotion. Arterial Street Preservation Fund This fund was created to repair classified arterial streets
and is funded from a one percent utility tax increase that was adopted by Council in 2008. Drug Forfeiture Fund Money seized and forfeited from drug activity is deposited in this fund
to be used exclusively for drug investigation and enforcement. The Housing and Community Development Fund Accounts for projects associated with the Community Development Block Grant
program. The Recreational Trails Fund Created for the purpose of trail development. This is a tax-supported fund. The Business Improvement Area Fund Accounts for special assessments
on downtown merchants for ongoing services and for improvements made to the downtown area. Mitigation Fees Accounts for the receipt of contracted mitigation fees for streets and fire
service.
City of Auburn: 2015 CAFR Fund Financial Statements and Schedules 11 2 Page 1 of 2 Hotel/Arterial Housing Local Motel Street Drug Community Streets Tax Preservation Forfeiture Development
ASSETS: Cash and Cash Equivalents $ 2,097,382 $ 203,793 $ 1,483,454 $ 444,833 $ 44,608 Receivables: Customer Accounts --132,013 --Other Receivables --325,941 --Due From Other Governmental
Units --17,615 9,752 82,231 Total Assets 2,097,382 203,793 1,959,023 454,585 126,839 LIABILITIES AND FUND BALANCES: Liabilities: Current Payables 16,692 2,500 15,159 10,761 81,935 Other
Liabilities Payable -----Total Liabilities 16,692 2,500 15,159 10,761 81,935 Fund Balances: Restricted -201,293 76,680 443,161 44,904 Committed 1,927,047 -1,731,672 --Assigned 153,643
-135,512 663 -Total Fund Balances 2,080,690 201,293 1,943,864 443,824 44,904 Total Liabilities and Fund Balances $ 2,097,382 $ 203,793 $ 1,959,023 $ 454,585 $ 126,839 City of Auburn,
Washington COMBINING BALANCE SHEET NON-MAJOR SPECIAL REVENUE FUNDS December 31, 2015
City of Auburn: 2015 CAFR Fund Financial Statements and Schedules 11 3 Page 2 of 2 Total Business Nonmajor Recreational Improvement Mitigation Special Revenue Trails Area Fees Funds
$ 42,529 $ 52,442 $ 6,028,358 $ 10,397,399 ---132,013 ---325,941 ---109,598 42,529 52,442 6,028,358 10,964,951 -3,987 55,851 186,885 --118,137 118,137 -3,987 173,988 305,022 42,466 48,395
5,776,255 6,633,154 ---3,658,719 63 60 78,115 368,056 42,529 48,455 5,854,370 10,659,929 $ 42,529 $ 52,442 $ 6,028,358 $ 10,964,951
City of Auburn: 2015 CAFR Fund Financial Statements and Schedules 11 4 Page 1 of 2 Hotel/Arterial Housing Local Motel Street Drug Community Streets Tax Preservation Forfeiture Development
REVENUES: Taxes: Retail Sales & Use $ 2,296,863 $ -$ -$ -$ -Interfund Utility --608,690 --Utility --1,389,924 --Excise -111,126 ---Other -----Intergovernmental --76,680 24,374 417,312
Charges for Services --132,013 4,276 -Investment Earnings 3,644 286 3,499 663 -Miscellaneous ---91,374 -Total Revenues 2,300,507 111,412 2,210,806 120,687 417,312 EXPENDITURES: Current:
Security of Persons and Property ---216,684 -Transportation 2,412,416 -4,015,136 --Economic Environment -77,015 --417,312 Total Expenditures 2,412,416 77,015 4,015,136 216,684 417,312
Excess (Deficiency) of Revenues Over (Under) Expenditures (111,909) 34,397 (1,804,330) (95,997) -OTHER FINANCING SOURCES (USES) : Transfers In (Note 5) 150,000 -600,000 --Transfers Out
(Note 5) (378) -(32,786) --Total Other Financing Sources (Uses) 149,622 -567,214 --Net Change in Fund Balances 37,713 34,397 (1,237,116) (95,997) -Fund Balances -Beginning 2,042,977
166,896 3,180,980 539,821 44,904 Fund Balances -Ending $ 2,080,690 $ 201,293 $ 1,943,864 $ 443,824 $ 44,904 City of Auburn, Washington COMBINING STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES NON-MAJOR SPECIAL REVENUE FUNDS For the Year Ended December 31, 2015
City of Auburn: 2015 CAFR Fund Financial Statements and Schedules 11 5 Page 2 of 2 Total Business Nonmajor Recreational Improvement Mitigation Special Revenue Trails Area Fees Funds
$ -$ -$ -$ 2,296,863 ---608,690 ---1,389,924 ---111,126 -70,972 -70,972 6,510 --524,876 --2,147,893 2,284,182 63 60 8,428 16,643 ---91,374 6,573 71,032 2,156,321 7,394,650 --460,000
676,684 ---6,427,552 -53,948 -548,275 -53,948 460,000 7,652,511 6,573 17,084 1,696,321 (257,861) ---750,000 --(742,463) (775,627) --(742,463) (25,627) 6,573 17,084 953,858 (283,488)
35,956 31,371 4,900,512 10,943,417 $ 42,529 $ 48,455 $ 5,854,370 $ 10,659,929
City of Auburn: 2015 CAFR Fund Financial Statements and Schedules 11 6 Variance with Final Final Budget Original Adopted Actual Positive (GAAP Basis) (GAAP Basis) Results (Negative)
REVENUES: Taxes: Property $ 1,600,000 $ 1,600,000 $ 2,296,863 $ 696,863 Investment Earnings 2,500 2,500 3,644 1,144 Total Revenues 1,602,500 1,602,500 2,300,507 698,007 EXPENDITURES:
Current: Transportation 2,600,000 3,360,000 2,412,416 947,584 Total Expenditures 2,600,000 3,360,000 2,412,416 947,584 Excess (Defic iency) of Revenues Over (Under ) Expenditures (997,500)
(1,757,500) (111,909) 1,645,591 OTHER FINANCING SOURCES (USES) : Transfers In (Note 5) 150,000 150,000 150,000 -Transfers Out (Note 5) -(10,053) (378) 9,675 Total Other Financing Sources
(Uses) 150,000 139,947 149,622 9,675 Net Change in Fund Balances (847,500) (1,617,553) 37,713 1,655,266 Fund Balances -Beginning 1,196,068 2,042,977 2,042,977 -Fund Balances -Ending
$ 348,568 $ 425,424 $ 2,080,690 $ 1,655,266 Budget Amounts For the Year Ended December 31, 2015 City of Auburn, Washington STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL LOCAL STREETS SPECIAL REVENUE FUND
City of Auburn: 2015 CAFR Fund Financial Statements and Schedules 11 7 Variance with Final Final Budget Original Adopted Actual Positive (GAAP Basis) (GAAP Basis) Results (Negative)
REVENUES: Taxes: Excise $ 87,900 $ 87,900 $ 111,126 $ 23,226 Charges for Services 6,000 6,000 -(6,000) Investment Earnings 140 140 286 146 Total Revenues 94,040 94,040 111,412 17,372
EXPENDITURES: Current: Economic Environment 86,000 106,000 77,015 28,985 Total Expenditures 86,000 106,000 77,015 28,985 Excess (Defic iency) of Revenues Over (Under ) Expenditures 8,040
(11,960) 34,397 46,357 Net Change in fund Balances 8,040 (11,960) 34,397 46,357 Fund Balances -Beginning 139,991 166,896 166,896 -Fund Balances -Ending $ 148,031 $ 154,936 $ 201,293
$ 46,357 Budget Amounts For the Year Ended December 31, 2015 City of Auburn, Washington STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL HOTEL/MOTEL
TAX SPECIAL REVENUE FUND
City of Auburn: 2015 CAFR Fund Financial Statements and Schedules 11 8 Variance with Final Final Budget Original Adopted Actual Positive (GAAP Basis) (GAAP Basis) Results (Negative)
REVENUES: Taxes: Interfund Utility $ 578,000 $ 578,000 $ 608,690 $ 30,690 Utility 1,475,200 1,475,200 1,389,924 (85,276) Intergovernmental 80,000 80,000 76,680 (3,320) Charges for Services
-190,000 132,013 (57,987) Investment Earnings 1,500 1,500 3,499 1,999 Total Revenues 2,134,700 2,324,700 2,210,806 (113,894) EXPENDITURES: Current: Transportation 2,109,999 5,675,292
4,015,136 1,660,156 Total Expenditures 2,109,999 5,675,292 4,015,136 1,660,156 Excess (Defic iency) of Revenues Over (Under ) Expenditures 24,701 (3,350,592) (1,804,330) 1,546,262 OTHER
FINANCING SOURCES (USES) : Transfers In (Note 5) -612,340 600,000 (12,340) Transfers Out (Note 5) (85,410) (95,463) (32,786) 62,677 Total Other Financing Sources (Uses) (85,410) 516,877
567,214 50,337 Net Change in Fund Balances (60,709) (2,833,715) (1,237,116) 1,596,599 Fund Balances -Beginning 521,910 3,180,980 3,180,980 -Fund Balances -Ending $ 461,201 $ 347,265
$ 1,943,864 $ 1,596,599 Budget Amounts For the Year Ended December 31, 2015 City of Auburn, Washington STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL
ARTERIAL STREET PRESERVATION SPECIAL REVENUE FUND
City of Auburn: 2015 CAFR Fund Financial Statements and Schedules 11 9 Variance with Final Final Budget Original Adopted Actual Positive (GAAP Basis) (GAAP Basis) Results (Negative)
REVENUES: Taxes: Intergovernmental $ 36,400 $ 36,400 $ 24,374 $ (12,026) Charges for Services --4,276 4,276 Investment Earnings 700 700 663 (37) Miscellaneous 60,000 60,000 91,374 31,374
Total Revenues 97,100 97,100 120,687 23,587 EXPENDITURES: Current: Security of Persons & Property 304,448 304,448 216,684 87,764 Total Expenditures 304,448 304,448 216,684 87,764 Excess
(Defic iency of Revenues Over (Under ) Expenditures (207,348) (207,348) (95,997) 111,351 Net Change in Fund Balances (207,348) (207,348) (95,997) 111,351 Fund Balances -Beginning 505,405
539,821 539,821 -Fund Balances -Ending $ 298,057 $ 332,473 $ 443,824 $ 111,351 Budget Amounts For the Year Ended December 31, 2015 City of Auburn, Washington STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL DRUG FORFEITURE SPECIAL REVENUE FUND
City of Auburn: 2015 CAFR Fund Financial Statements and Schedules 12 0 Variance with Final Final Budget Original Adopted Actual Positive (GAAP Basis) (GAAP Basis) Results (Negative)
REVENUES: Intergovernmental $ 450,000 $ 450,000 $ 417,312 $ (32,688) Total Revenues 450,000 450,000 417,312 (32,688) EXPENDITURES: Current: Economic Environment 440,000 440,000 417,312
22,688 Total Expenditures 440,000 440,000 417,312 22,688 Excess (Defic iency) of Revenues Over (Under ) Expenditures 10,000 10,000 -(10,000) Net Change in Fund Balances 10,000 10,000
-(10,000) Fund Balances -Beginning 27,371 44,904 44,904 -Fund Balances -Ending $ 37,371 $ 54,904 $ 44,904 $ (10,000) Budget Amounts For the Year Ended December 31, 2015 City of Auburn,
Washington STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL HOUSING & COMMUNITY DEVELOPMENT SPECIAL REVENUE FUND
City of Auburn: 2015 CAFR Fund Financial Statements and Schedules 12 1 Variance with Final Final Budget Original Adopted Actual Positive (GAAP Basis) (GAAP Basis) Results (Negative)
REVENUES: Intergovernmental $ 7,100 $ 7,100 $ 6,510 $ (590) Investment Earnings 30 30 63 33 Total Revenues 7,130 7,130 6,573 (557) Excess (Defic iency) of Revenues Over (Under ) Expenditures
7,130 7,130 6,573 (557) Net Change in Fund Balances 7,130 7,130 6,573 (557) Fund Balances -Beginning 36,717 35,956 35,956 -Fund Balances -Ending $ 43,847 $ 43,086 $ 42,529 $ (557) Budget
Amounts For the Year Ended December 31, 2015 City of Auburn, Washington STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL RECREATION TRAILS SPECIAL REVENUE
FUND
City of Auburn: 2015 CAFR Fund Financial Statements and Schedules 12 2 Variance with Final Final Budget Original Adopted Actual Positive (GAAP Basis) (GAAP Basis) Results (Negative)
REVENUES: Taxes: Other $ 55,000 $ 55,000 $ 70,972 $ 15,972 Investment Earnings 60 60 60 -Total Revenues 55,060 55,060 71,032 15,972 EXPENDITURES: Current: Economic Environment 55,000
55,000 53,948 1,052 Total Expenditures 55,000 55,000 53,948 1,052 Excess (Defic iency) of Revenues Over (Under ) Expenditures 60 60 17,084 17,024 Net Change in Fund Balances 60 60 17,084
17,024 Fund Balances -Beginning 41,212 31,371 31,371 -Fund Balances -Ending $ 41,272 $ 31,431 $ 48,455 $ 17,024 Budget Amounts For the Year Ended December 31, 2015 City of Auburn, Washington
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL BUSINESS IMPROVEMENT AREA SPECIAL REVENUE FUND
City of Auburn: 2015 CAFR Fund Financial Statements and Schedules 12 3 Variance with Final Final Budget Original Adopted Actual Positive (GAAP Basis) (GAAP Basis) Results (Negative)
REVENUES: Investment Earnings $ 14,100 $ 14,100 $ 15,717 $ 1,617 Total Revenues 14,100 14,100 15,717 1,617 Excess (Defic iency) of Revenues Over (Under ) Expenditures 14,100 14,100 15,717
1,617 OTHER FINANCING SOURCES (USES) : Transfers In (Note 5) 1,300,000 2,800,000 2,800,000 -Transfers Out (Note 5) (658,000) (658,000) (430,106) 227,894 Total Other Financing Sources
(Uses) 642,000 2,142,000 2,369,894 227,894 Net Change in Fund Balances 656,100 2,156,100 2,385,611 229,511 Fund Balances -Beginning 5,582,204 5,599,686 5,599,686 -Fund Balances -Ending
$ 6,238,304 $ 7,755,786 $ 7,985,297 $ 229,511 RECONCILIATION OF PERSPECTIVE DIFFERENCE BETWEEN BUDGETARY INFORMATION AND GENERALLY ACCEPTED ACCOUNTING PRINCIPLES (GAAP) : The Cumulative
Reserve Fund is combined with the General Fund for purposes of GASB Statement 54 (7,985,297) Fund Balance -Ending (GAAP) $ -The notes to the financial statements are an integral part
of this statement. Budget Amounts For the Year Ended December 31, 2015 City of Auburn, Washington STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL CUMULATIVE
RESERVE SPECIAL REVENUE FUND
City of Auburn: 2015 CAFR Fund Financial Statements and Schedules 12 4 Variance with Final Final Budget Original Adopted Actual Positive (GAAP Basis) (GAAP Basis) Results (Negative)
REVENUES: Charges for Services $ 990,000 $ 990,000 $ 2,147,893 $ 1,157,893 Investment Earnings 4,890 4,890 8,428 3,538 Total Revenues 994,890 994,890 2,156,321 1,161,431 EXPENDITURES:
Current: Security of Person & Property 460,000 460,000 460,000 -Total Expenditures 460,000 460,000 460,000 -Excess (Defic iency) of Revenues Over (Under ) Expenditures 534,890 534,890
1,696,321 1,161,431 OTHER FINANCING SOURCES (USES) : Transfers In (Note 5) -400,000 -(400,000) Transfers Out (Note 5) (3,126,423) (3,498,156) (742,463) 2,755,693 Total Other Financing
Sources (Uses) (3,126,423) (3,098,156) (742,463) 2,355,693 Net Change in Fund Balances (2,591,533) (2,563,266) 953,858 3,517,124 Fund Balances -Beginning 5,205,964 4,900,512 4,900,512
-Fund Balances -Ending $ 2,614,431 $ 2,337,246 $ 5,854,370 $ 3,517,124 Budget Amounts For the Year Ended December 31, 2015 City of Auburn, Washington STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL MITIGATION SPECIAL REVENUE FUND
City of Auburn: 2015 CAFR Fund Financial Statements and Schedules 12 5 NON-MAJOR GOVERNMENTAL FUNDS DEBT SERVICE FUNDS Debt service funds account for payments of principal and interest
on general obligation and special assessment long-term debt. The City of Auburn has two outstanding general obligation issues, and two special assessment funds. The 2010 A Series General
Obligation Bonds (refunding portion) Accounts for debt service on a Council-approved bond issue to partially advance refund the 1998 General Obligation Library Bonds. The 2010 A Series
(non-refunding portion) and B Series General Obligation Bonds Accounts for debt service on a Council-approved bond issue to finance acquisition costs of certain condominium units in
the City Hall Annex. The 2010 C Series and 2010 D Series General Obligation Bonds Accounts for the debt service on a Council-approved bond issue to finance a portion of the downtown
infrastructure improvements in the City’s revitalization area. The 2006 General Obligation Bonds Accounts for the debt service on a Council-approved bond issue to finance improvements
to the Auburn Golf Course including a pro shop, clubhouse, and related facilities. In addition, the bonds were used to construct and equip restaurant, banquet and related facilities
for the restaurant located at the Auburn Golf Course. The L.I.D. Guarantee Fund This fund provides financial security for outstanding L.I.D. bonds and special assessment debt. Special
Assessment Debt Fund Accounts for the special assessment collections and debt service payments for all local improvement districts located within the City.
City of Auburn: 2015 CAFR Fund Financial Statements and Schedules 12 6 Total GO Library 2010 2010 Nonmajor Refunding A & B C & D Local 2006 LID Special Debt Service Bond Debt Annex Revitalization
Golf Guarantee Assessments Funds ASSETS: Cash and Cash Equivalents $ -$ -$ -$ -$ 1,582 $ 11,696 $ 13,278 Receivables: Special Assessments -----15,899 15,899 Total Assets ----1,582 27,595
29,177 LIABILITIES, DEFERRED INFLOWS AND FUND BALANCES: Deferred Inflows of Resources: Unavailable Revenue -Special Assessments -----15,899 15,899 Total Deferred Inflows of Resources
-----15,899 15,899 Fund Balances: Restricted ----1,582 11,696 13,278 Total Fund Balances ----1,582 11,696 13,278 Total Liabilities, Deferred Inflows and Fund Balances $ -$ -$ -$ -$ 1,582
$ 27,595 $ 29,177 City of Auburn, Washington COMBINING BALANCE SHEET NON-MAJOR DEBT SERVICE FUNDS December 31, 2015
City of Auburn: 2015 CAFR Fund Financial Statements and Schedules 12 7 Total GO Library 2010 2010 Nonmajor Refunding A & B C & D Local 2006 L I D Special Debt Service Bond Debt Annex
Revitalization Golf Guarantee Assessments Funds REVENUES: Taxes: Retail Sales & Use $ -$ -$ 255,695 $ -$ -$ -$ 255,695 Special Assessments ----7,494 7,494 Intergovernmental -377,675
121,872 ---499,547 Investment Earnings 38 -155 7 29 1,587 1,816 Total Revenues 38 377,675 377,722 7 29 9,081 764,552 EXPENDITURES: Debt Service: Principal 235,000 535,000 220,000 250,000
-5,677 1,245,677 Interest 44,500 1,160,917 374,617 162,211 -1,568 1,743,813 Total Expenditures 279,500 1,695,917 594,617 412,211 -7,245 2,989,490 Excess (Deficiency) of Revenues Over
(Under) Expenditures (279,462) (1,318,242) (216,895) (412,204) 29 1,836 (2,224,938) OTHER FINANCING SOURCES (USES) : Transfers In (Note 5) 279,462 1,318,242 216,895 412,204 449 -2,227,252
Transfers Out (Note 5) ----(23,443) (449) (23,892) Total Other Financing Sources (Uses) 279,462 1,318,242 216,895 412,204 (22,994) (449) 2,203,360 Net Change in Fund Balances ----(22,965)
1,387 (21,578) Fund Balances -Beginning ----24,547 10,309 34,856 Fund Balances -Ending $ -$ -$ -$ -$ 1,582 $ 11,696 $ 13,278 City of Auburn, Washington COMBINING STATEMENT OF REVENUES,
EXPENDITURES, AND CHANGES IN FUND BALANCE NON-MAJOR DEBT SERVICE FUNDS For the Year Ended December 31, 2015
City of Auburn: 2015 CAFR Fund Financial Statements and Schedules 12 8
City of Auburn: 2015 CAFR Fund Financial Statements and Schedules 12 9 NON-MAJOR GOVERNMENTAL FUNDS CAPITAL PROJECT FUNDS Capital projects funds account for the City of Auburn's financial
resources used for the acquisition or construction of major non-proprietary capital facilities. Auburn has two non-major capital project funds. The Municipal Park Construction Fund Accounts
for park related construction activity and includes funding from a portion of field rental income and adult athletic team fees. The Local Revitalization Fund Accounts for the City Hall
Plaza and the Downtown Promenade project.
City of Auburn: 2015 CAFR Fund Financial Statements and Schedules 13 0 Municipal Nonmajor Park Local Capital Project Construction Revitalization Funds ASSETS: Cash and Cash Equivalents
$ 295,889 $ 486,969 $ 782,858 Due From Other Governmental Units 1,642,813 -1,642,813 Total Assets 1,938,702 486,969 2,425,671 LIABILITIES AND FUND BALANCES: Liabilities: Current Payables
874,762 22,418 897,180 Interfund Payable (Note 5) 400,000 -400,000 Total Liabilities 1,274,762 22,418 1,297,180 Fund Balances: Restricted 663,940 -663,940 Assigned -464,551 464,551 Total
Fund Balances 663,940 464,551 1,128,491 Total Liabilities and Fund Balances $ 1,938,702 $ 486,969 $ 2,425,671 City of Auburn, Washington COMBINING BALANCE SHEET CAPITAL PROJECT FUNDS
December 31, 2015
City of Auburn: 2015 CAFR Fund Financial Statements and Schedules 13 1 Municipal Nonmajor Park Local Capital Project Construction Revitalization Funds REVENUES: Taxes: Property $ 137,690
$ -$ 137,690 Intergovernmental 2,422,479 -2,422,479 Charges for Services 10,409 -10,409 Investment Earnings 197 762 959 Miscellaneous 42,944 -42,944 Total Revenues 2,613,719 762 2,614,481
EXPENDITURES: Cultural and Recreation 49 -49 Capital Outlay 2,942,366 94,150 3,036,516 Total Expenditures 2,942,415 94,150 3,036,565 Excess (Deficiency) of Revenues Over (Under) Expenditures
(328,696) (93,388) (422,084) OTHER FINANCING SOURCES (USES) : Transfers In (Note 5) 464,866 -464,866 Total Other Financing Sources (Uses) 464,866 -464,866 Net Change in Fund Balances
136,170 (93,388) 42,782 Fund Balances -Beginning 527,770 557,939 1,085,709 Fund Balances -Ending $ 663,940 $ 464,551 $ 1,128,491 City of Auburn, Washington COMBINING STATEMENT OF REVENUES,
EXPENDITURES, AND CHANGES IN FUND BALANCES CAPITAL PROJECT FUNDS For the Year Ended December 31, 2015
City of Auburn: 2015 CAFR Fund Financial Statements and Schedules 13 2
City of Auburn: 2015 CAFR Fund Financial Statements and Schedules 13 3 NON-MAJOR GOVERNMENTAL FUNDS PERMANENT FUNDS Permanent funds are used to report resources that are legally restricted
to the extent that only earnings, and not principal, may be used for purposes that support City programs that are for the benefit of the City or its citizens. Auburn has one permanent
fund. The Cemetery Endowed Care Fund Accounts for non-expendable investments held by the City's trustee. The interest income from investments is available for use by the cemetery fund
for capital enhancement and maintenance.
City of Auburn: 2015 CAFR Fund Financial Statements and Schedules 13 4 Cemetery Endowed Care ASSETS: Cash and Cash Equivalents Non-Expendable Trust $ 1,686,280 Total Assets 1,686,280
LIABILITIES AND FUND BALANCES: FUND BALANCES: Nonspendable 1,585,707 Assigned 100,573 Total Fund Balances 1,686,280 Total Liabilities and Fund Balances $ 1,686,280 City of Auburn, Washington
BALANCE SHEET PERMANENT FUND December 31, 2015
City of Auburn: 2015 CAFR Fund Financial Statements and Schedules 13 5 Cemetery Endowed Care REVENUES: Increase to Endowment from Lot Sales $ 41,559 Investment Earnings 5,073 Total Revenues
46,632 EXPENDITURES: Excess (Deficiency) of Revenues Over (Under) Expenditures 46,632 OTHER FINANCING SOURCES (USES) : Transfers Out (Note 5) (30,000) Total Other Financing Sources (Uses)
(30,000) Net Change in Fund Balance 16,632 Fund Balance -Beginning 1,669,648 Fund Balance -Ending $ 1,686,280 For the Year Ended December 31, 2015 City of Auburn, Washington STATEMENT
OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE PERMANENT FUND
City of Auburn: 2015 CAFR Fund Financial Statements and Schedules 13 6
City of Auburn: 2015 CAFR Fund Financial Statements and Schedules 13 7 NON-MAJOR PROPRIETARY FUNDS ENTERPRISE FUNDS The City's enterprise funds are used to account for operations that
are financed and operated in a manner similar to private business operations. The goods and services these funds provide to the general public are primarily financed by service charges.
Enterprise funds are self-supporting and use the accrual method of accounting. Auburn has two non-major enterprise funds. The Airport Fund Provides accounting of the activities of the
Auburn Municipal Airport. Sources of income for the fund are leases, rentals, fuel charges, investment interest, and grant funding as available. The Cemetery Fund Accounts for Mountain
View Cemetery's operations.
City of Auburn: 2015 CAFR Fund Financial Statements and Schedules 13 8 Total Nonmajor Enterprise Airport Cemetery Funds ASSETS: Current Assets: Cash and Cash Equivalents $ 712,138 $
413,141 $ 1,125,279 Restricted Cash: Customer Deposits 70,920 -70,920 Due From Other Governmental Units 43,505 -43,505 Inventories -6,722 6,722 Total Current Assets 826,563 419,863 1,246,426
Noncurrent Assets: Capital Assets: Land 3,653,343 342,836 3,996,179 Buildings and Equipments 2,707,302 1,022,267 3,729,569 Improvements Other Than Buildings 9,616,999 1,160,718 10,777,717
Construction in Progress 342,239 -342,239 Less: Accumulated Depreciation (6,676,863) (1,467,279) (8,144,142) Total Capital Assets (Net of A/D) 9,643,020 1,058,542 10,701,562 Total Noncurrent
Assets 9,643,020 1,058,542 10,701,562 Total Assets 10,469,583 1,478,405 11,947,988 DEFERRED OUTFLOWS OF RESOURCES: Deferred Outflow from Bond Refunding 33,237 -33,237 Deferred Outflow
Related to Pensions 2,531 37,931 40,462 35,768 37,931 73,699 LIABILITIES: Current Liabilities: Current Payables 89,038 44,217 133,255 Interfund Payables 183,395 -183,395 Employee Leave
Benefits -Current 2,502 15,539 18,041 General Obligation Bonds Payable -Current 150,000 -150,000 Customer Deposits 70,314 -70,314 Total Current Liabilities 495,249 59,756 555,005 Noncurrent
Liabilities: Employee Leave Benefits 695 4,316 5,011 General Obligation Bonds Payable 543,487 -543,487 Net Pension Liability 10,037 172,867 182,904 Total Noncurrent Liabilities 554,219
177,183 731,402 Total Liabilities 1,049,468 236,939 1,286,407 DEFERRED INFLOWS OF RESOURCES: Deferred Inflow Related to Pensions 2,710 41,822 44,532 NET POSITION: Net Investment in Capital
Assets 8,982,770 1,058,542 10,041,312 Unrestricted 470,403 179,033 649,436 Total Net Position $ 9,453,173 $ 1,237,575 $ 10,690,748 City of Auburn, Washington COMBINING STATEMENT OF NET
POSITION NON-MAJOR ENTERPRISE FUNDS December 31, 2015
City of Auburn: 2015 CAFR Fund Financial Statements and Schedules 13 9 Total Nonmajor Enterprise Airport Cemetery Funds OPERATING REVENUES: Charges for Services $ 33,158 $ 1,084,467
$ 1,117,625 Other Operating Revenue 696,340 -696,340 Total Operating Revenues 729,498 1,084,467 1,813,965 OPERATING EXPENSES: Operations & Maintenance 10,249 290,904 301,153 Administration
478,761 209,524 688,285 Depreciation/Amortization 468,031 50,796 518,827 Other Operating Expenses 41 12,865 12,906 Total Operating Expenses 957,082 564,089 1,521,171 Operating Income
(Loss) (227,584) 520,378 292,794 NON-OPERATING REVENUE (EXPENSE) : Interest Revenue 1,238 607 1,845 Other Non-Operating Revenues 69,420 151 69,571 Other Non-Operating Expenses (41,834)
-(41,834) Total Non-Operating Revenue (Expense) 28,824 758 29,582 Income (Loss) Before Contributions & Transfers (198,760) 521,136 322,376 Transfers In (Note 5) -30,000 30,000 Change
in Net Position (198,760) 551,136 352,376 Net Position, January 1, as Previosly Reported 9,662,547 870,261 10,532,808 Change in Accounting Principle (10,614) (183,822) (194,436) Net
Position, January 1 restated 9,651,933 686,439 10,338,372 Net Position, December 31 $ 9,453,173 $ 1,237,575 $ 10,690,748 City of Auburn, Washington COMBINING STATEMENT OF REVENUES, EXPENSES,
AND CHANGES IN NET POSITION NON-MAJOR ENTERPRISE FUNDS For the Year Ended December 31, 2015
City of Auburn: 2015 CAFR Fund Financial Statements and Schedules 14 0 Page 1 of 2 Total Non Major Enterprise Airport Cemetery Funds CASH FLOWS FROM OPERATING ACTIVITIES: Cash Received
From Users $ 747,990 $ 1,084,467 $ 1,832,457 Cash Paid to Suppliers for Goods & Services (414,746) (374,598) (789,344) Cash Paid for Taxes (41) (12,865) (12,906) Cash Paid to Employees
(36,075) (627,913) (663,988) Other Cash Received -151 151 Net Cash Provided (Used) By Operating Activities 297,128 69,242 366,370 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES: Interfund
Loan Payable (16,605) -(16,605) Operating Grant Received 64,819 -64,819 Other Non-Operating Revenue 4,380 -4,380 Transfers from Other Funds -30,000 30,000 Net Cash Provided (Used) by
Non-Capital Financing Activities 52,594 30,000 82,594 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES: Purchase of Capital Assets (348,270) (17,301) (365,571) Capital Grant
(20,479) -(20,479) Principal Payment on Debt (135,000) -(135,000) Interest Payment on Debt (36,675) -(36,675) Net Cash Provided (Used) for Capital and Related Financing Activities (540,424)
(17,301) (557,725) CASH FLOW FROM INVESTING ACTIVITIES: Interest Received 1,238 607 1,845 Net Cash Provided (Used) in Investing Activities 1,238 607 1,845 Net Increase (Decrease) in
Cash and Cash Equivalents (189,464) 82,548 (106,916) Cash and Cash Equivalents -Beginning of Year 972,522 330,593 1,303,115 Cash and Cash Equivalents -End of Year $ 783,058 $ 413,141
$ 1,196,199 CASH AT END OF YEAR CONSISTS OF: Cash and Cash Equivalents 712,138 413,141 1,125,279 Restricted Cash -Customer Deposits 70,920 -70,920 Total Cash $ 783,058 $ 413,141 $ 1,196,199
City of Auburn, Washington COMBINING STATEMENT OF CASH FLOWS NON-MAJOR ENTERPRISE FUNDS For the Fiscal Year Ended December 31, 2015
City of Auburn: 2015 CAFR Fund Financial Statements and Schedules 14 1 Page 2 of 2 Total Non Major Enterprise Airport Cemetery Funds RECONCILIATION OF NET OPERATING INCOME TO NEW CASH
PROVIDED BY OPERATING ACTIVITIES Operating Income (Loss) $ (227,584) $ 520,378 $ 292,794 ADJUSTMENTS TO RECONCILE OPERATING INCOME TO NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES:
Depreciation 468,031 50,796 518,827 Asset (Increases) Decreases: Miscellaneous A/R Revenue -151 151 Inventory -2,342 2,342 Liability Increases (Decreases): Accounts & Vouchers Payable
38,083 (505,351) (467,268) Deposits Payable 18,492 -18,492 Wages & Benefits Payable 53 (1,546) (1,493) Compensated Absences Payable 53 2,472 2,525 Total Adjustments 524,712 (451,136)
73,576 Net Cash Provided (Used) by Operating Activities $ 297,128 $ 69,242 $ 366,370 SCHEDULE OF NONCASH INVESTING, CAPITAL AND FINANCING ACTIVITIES Total Non Cash Investing, Capital
and Financing Activities $ -$ -$ -City of Auburn, Washington COMBINING STATEMENT OF CASH FLOWS NON-MAJOR ENTERPRISE FUNDS For the Fiscal Year Ended December 31, 2015
City of Auburn: 2015 CAFR Fund Financial Statements and Schedules 14 2
City of Auburn: 2015 CAFR Fund Financial Statements and Schedules 14 3 NON-MAJOR PROPRIETARY FUNDS INTERNAL SERVICE FUNDS The City of Auburn's internal service funds are used to account
for the financing of goods and services provided by one department of operation to other departments on a cost reimbursement basis. Internal service funds are self-supporting and use
the accrual method of accounting. Auburn has five internal service funds. The Insurance Fund Provides a source of funds to pay unemployment claims and property and casualty claims which
fall below deductible levels. The Workers Comp Self Insurance Fund Provides a source of funds to pay time loss and medical benefits for employees who are affected by an occupational
injury or illness. The Facilities Funds Accounts for the costs of maintaining various City facilities. The Information Services Fund Accounts for the costs of purchasing and maintaining
the City’s various computer and telecommunications systems. The Equipment Rental Fund Accounts for the costs of purchasing, maintaining, and operating Auburn's fleet of vehicles and
related equipment.
City of Auburn: 2015 CAFR Fund Financial Statements and Schedules 14 4 Workers Comp Information Equipment Insurance Self Insurance Facilities Services Rental Total ASSETS: Current Assets:
Cash and Cash Equivalents $ 1,530,588 $ 788,415 $ 2,545,675 $ 4,079,854 $ 6,108,308 $ 15,052,840 Customer Accounts --75,436 -1,055 76,491 Due From Other Governmental Units ---5,638 138
5,776 Inventories ----233,296 233,296 Total Current Assets 1,530,588 788,415 2,621,111 4,085,492 6,342,797 15,368,403 Noncurrent Assets: Capital Assets: Buildings and Equipment ---6,845,152
14,224,661 21,069,813 Improvements Other than Buildings ---7,497 109,661 117,158 Construction in Progress ----43,655 43,655 Less: Accumulated Depreciation ---(5,486,214) (8,889,375)
(14,375,589) Total Capital Assets (Net of A/D) ---1,366,435 5,488,602 6,855,037 Total Noncurrent Assets ---1,366,435 5,488,602 6,855,037 Total Assets 1,530,588 788,415 2,621,111 5,451,927
11,831,399 22,223,440 DEFERRED OUTFLOWS OF RESOURCES: Deferred Outflow Related to Pensions -6,733 58,889 143,328 56,386 265,336 LIABILITIES: Current Liabilities: Current Payables -10,182
210,357 380,297 229,571 830,407 Customer Deposits --300 --300 Employee Leave Benefits -Current -4,553 35,584 81,838 27,285 149,260 Other Liabilities Payable ----39,107 39,107 Total Current
Liabilities -14,735 246,241 462,135 295,963 1,019,074 Noncurrent Liabilities Employee Leave Benefits -1,264 9,884 22,732 7,579 41,459 Other LT Liabilities Payable ----146,484 146,484
Net Pension Liability -26,699 233,527 568,378 1,202,698 2,031,302 Total Noncurrent Liabilities -27,963 243,411 591,110 1,356,761 2,219,245 Total Liabilities -42,698 489,652 1,053,245
1,652,724 3,238,319 DEFERRED INFLOWS OF RESOURCES: Deferred Inflow Related to Pensions -7,210 63,063 153,488 112,803 336,564 NET POSITION: Net Investment in Capital Assets ---1,366,435
5,303,011 6,669,446 Restricted For: Unrestricted 1,530,588 745,240 2,127,285 3,022,087 4,819,247 12,244,447 Total Net Position $ 1,530,588 $ 745,240 $ 2,127,285 $ 4,388,522 $ 10,122,258
$ 18,913,893 City of Auburn, Washington COMBINING STATEMENT OF NET POSITION INTERNAL SERVICE FUNDS December 31, 2015
City of Auburn: 2015 CAFR Fund Financial Statements and Schedules 14 5 Workers Comp Information Equipment Insurance Self Insurance Facilities Services Rental Total OPERATING REVENUES:
Charges for Services $ -$ 815,661 $ 3,447,288 $ 5,290,605 $ 3,504,394 $ 13,057,948 Other Operating Revenue --91,745 119,148 138 211,031 Total Operating Revenues -815,661 3,539,033 5,409,753
3,504,532 13,268,979 OPERATING EXPENSES: Operations & Maintenance -477,943 2,662,189 4,732,771 1,554,984 9,427,887 Administration 125,131 ---693,239 818,370 Depreciation/Amortization
---624,001 927,965 1,551,966 Total Operating Expenses 125,131 477,943 2,662,189 5,356,772 3,176,188 11,798,223 Operating Income (Loss) (125,131) 337,718 876,844 52,981 328,344 1,470,756
NON-OPERATING REVENUE (EXPENSE) : Interest Revenue 1,662 899 3,738 5,474 8,345 20,118 Other Non-Operating Revenues --57 1,526 109,403 110,986 Gain (Loss) on Sale of Capital Assets ----(30,466)
(30,466) Interest Expense ----(2,951) (2,951) Total Non-Operating Revenue (Expense) 1,662 899 3,795 7,000 84,331 97,687 Income (Loss) Before Contributions (123,469) 338,617 880,639 59,981
412,675 1,568,443 Transfers In (Note 5) ---102,807 398,112 500,919 Transfers Out (Note 5) --(659,121) -(237,267) (896,388) Change in Net Position (123,469) 338,617 221,518 162,788 573,520
1,172,974 Net Position, January 1, as Previosly Reported 1,654,057 434,859 2,152,736 4,826,830 10,864,439 19,932,921 Change in Accounting Principle -(28,236) (246,969) (601,096) (1,315,701)
(2,192,002) Net Position, January 1 restated 1,654,057 406,623 1,905,767 4,225,734 9,548,738 17,740,919 Total Net Position -Ending $ 1,530,588 $ 745,240 $ 2,127,285 $ 4,388,522 $ 10,122,258
$ 18,913,893 City of Auburn, Washington COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION INTERNAL SERVICE FUNDS For the Year Ended December 31, 2015
City of Auburn: 2015 CAFR Fund Financial Statements and Schedules 14 6 Page 1 of 2 Insurance Workers Comp Self Insurance Facilities Information Services Equipment Rental Total CASH FLOWS
FROM OPERATING ACTIVITIES: Cash Received From Users $ -$ 815,661 $ 3,552,707 $ 5,409,497 $ 3,504,394 $ 13,282,259 Cash Paid to Suppliers for Goods & Services (121,830) (360,789) (1,782,712)
(2,557,129) (1,461,248) (6,283,708) Cash Paid for Taxes (3,318) ----(3,318) Cash Paid to Employees -(114,441) (895,942) (2,174,768) (912,924) (4,098,075) Other Cash Received ----138
138 Net Cash Provided (Used) By Operating Activities (125,148) 340,431 874,053 677,600 1,130,360 2,897,296 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES: Operating Grant Received --57
-678 735 Other Non-Operating Revenue ---1,526 (85,632) (84,106) Transfers In ---102,807 398,112 500,919 Transfers Out --(659,121) -(237,267) (896,388) Net Cash Provided (Used) by Non-Capital
Financing Activities --(659,064) 104,333 75,891 (478,840) CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES: Proceeds from Sale of Equipment ----116,828 116,828 Purchase of Capital
Assets ---(619,938) (1,407,612) (2,027,550) Proceeds from Insurance Settlement ----106,842 106,842 Principal Payment on Debt ----185,592 185,592 Interest Payment on Debt ----(2,951)
(2,951) Net Cash Provided (Used) for Capital and Related Financing Activities ---(619,938) (1,001,301) (1,621,239) CASH FLOW FROM INVESTING ACTIVITIES: Interest Received 1,662 899 3,738
5,474 8,345 20,118 Net Cash Provided (Used) in Investing Activities 1,662 899 3,738 5,474 8,345 20,118 Net Increase (Decrease) in Cash and Cash Equivalents (123,486) 341,330 218,727
167,469 213,295 817,335 Cash and Cash Equivalents -Beginning of Year 1,654,074 447,085 2,326,948 3,912,385 5,895,013 14,235,505 Cash and Cash Equivalents -End of Year $ 1,530,588 $ 788,415
$ 2,545,675 $ 4,079,854 $ 6,108,308 $ 15,052,840 CASH AT END OF YEAR CONSISTS OF: Cash and Cash Equivalents 1,530,588 788,415 2,545,675 4,079,854 6,108,308 15,052,840 Total Cash $ 1,530,588
$ 788,415 $ 2,545,675 $ 4,079,854 $ 6,108,308 $ 15,052,840 City of Auburn, Washington COMBINING STATEMENT OF CASH FLOWS INTERNAL SERVICE FUNDS For the Fiscal Year Ended December 31,
2015
City of Auburn: 2015 CAFR Fund Financial Statements and Schedules 14 7 Page 2 of 2 Insurance Workers Comp Self Insurance Facilities Information Services Equipment Rental Total RECONCILIATION
OF NET OPERATING INCOME TO NEW CASH PROVIDED BY OPERATING ACTIVITIES Operating Income (Loss) $ (125,131) $ 337,718 $ 876,844 $ 52,981 $ 328,344 $ 1,470,756 ADJUSTMENTS TO RECONCILE OPERATING
INCOME TO NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES: Depreciation ---624,001 927,965 1,551,966 Asset (Increases) Decreases: Accounts Receivable --13,674 (256) -13,418 Inventory
----(17,096) (17,096) Liability Increases (Decreases): Accounts & Vouchers Payable (17) 2,040 (32,333) 39,318 (92,061) (83,053) Wages & Benefits Payable --12,276 (56,019) (2,531) (46,274)
Compensated Absences Payable -673 3,592 17,575 (14,261) 7,579 Total Adjustments (17) 2,713 (2,791) 624,619 802,016 1,426,540 Net Cash Provided (Used) by Operating Activities $ (125,148)
$ 340,431 $ 874,053 $ 677,600 $ 1,130,360 $ 2,897,296 SCHEDULE OF NONCASH INVESTING, CAPITAL AND FINANCING ACTIVITIES Total Non Cash Investing, Capital and Financing Activities $ -$
-$ -$ -$ -$ -City of Auburn, Washington COMBINING STATEMENT OF CASH FLOWS INTERNAL SERVICE FUNDS For the Fiscal Year Ended December 31, 2015
City of Auburn: 2015 CAFR Fund Financial Statements and Schedules 14 8
City of Auburn: 2015 CAFR Fund Financial Statements and Schedules 14 9 AGENCY FUNDS The agency fund accounts for monies over which the City is strictly a short-term custodian. Agency
funds typically involve only the receipt, temporary investment, and remittance of fiduciary resources to individuals, private organizations, or other governments.
City of Auburn: 2015 CAFR Fund Financial Statements and Schedules 15 0 Balance Balance 1/1/2015 Additions Deductions 12/31/2015 ASSETS: Cash and Cash Equivalents $ 724,783 $ 1,065,196
$ 1,379,571 $ 410,408 Other Current Assets 468 219,583 188,572 31,479 Due from Other Governments 30,000 -30,000 -Total Assets $ 755,251 $ 1,284,779 $ 1,598,143 $ 441,887 LIABILITIES:
Due to Other Government Units 755,251 2,172,504 1,859,140 441,887 Total Liabilities $ 755,251 $ 2,172,504 $ 1,859,140 $ 441,887 City of Auburn, Washington STATEMENT OF CHANGES IN ASSETS
AND LIABILITIES AGENCY FUND For the Fiscal Year Ended December 31, 2015
City of Auburn: 2015 CAFR Statistical Section 15 1 City of Auburn STATISTICAL SECTION December 31, 2015 Financial Trends Information Financial trends schedules are intended to provide
users with information to assist them in understanding and assessing how the City’s financial position has changed over time. Schedule 1 Net position by components ...............................................................................................
152 Schedule 2 Changes in net position ...................................................................................................... 153 Schedule 3 Fund balances, government
funds ....................................................................................... 154 Schedule 4 Changes in fund balances, government funds……………………………………………..…......155 Schedule
5 Tax revenues by source, government funds ......................................................................... 156 Revenue Capacity Information The objective of providing revenue
capacity information is to help users understand and assess the factors affecting the City’s ability to generate its most significant local source revenues. Schedule 6 Assessed value
by type ........................................................................................................ 157 Schedule 7 Property tax data ...............................................................................................................
158 Schedule 8 Property tax levies and collections ..................................................................................... 160 Schedule 9 Principal taxpayers-property taxes-sales
taxes ...................................................................... 161 Schedule 10 Retail tax collections by sector ............................................................................................
162 Debt Capacity Information Debt capacity information is intended to assist users to understand and assess the City’s current levels of outstanding debt and ability to issue additional
debt in the future. Schedule 11 Ratios of outstanding debt by type ..................................................................................... 163 Schedule 12 Computation of
legal debt margin ...................................................................................... 164 Schedule 13 Legal debt margin ratios ......................................................................................................
164 Schedule 14 Computation of net direct and estimated overlapping debt ................................................. 165 Schedule 15 Ratios of net general bonded debt to assessed
value ............................................................ 166 Schedule 16 Pledged revenue bond coverages ........................................................................................
167 Demographic and Economic Information These schedules offer demographic and economic information to assist users in understanding certain aspects of the environment within which the
City operates and to provide information that facilitates comparisons of financial statement information over time and across governmental units. Schedule 17 Population, income and housing
trends ............................................................................... 168 Schedule 18 Major employers ................................................................................................................
169 Operating Information These schedules contain service and infrastructure data to help users understand how the information in the City’s financial report relates to the services
the City provides and the activities it performs. Schedule 19 Staffing levels by department .............................................................................................
170 Schedule 20 Operating indicators by department…………………………………………………….………...171 Schedule 21 Capital indicators by department ........................................................................................
172 Schedule 22 Utility customers by customer class ...................................................................................... 172
City of Auburn: 2015 CAFR Statistical Section 15 2 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Governmental activities: Net Investment in Capital Assets $ 200,814,063 $ 212,611,232
$ 303,564,348 $ 314,691,982 $ 320,506,701 $ 340,941,112 $ 354,899,294 $ 346,195,793 $ 348,080,505 $ 361,094,242 Restricted 26,839,342 24,519,024 28,965,599 12,741,566 15,180,467 14,230,963
13,164,116 15,019,909 16,404,328 19,470,880 Unrestricted 24,148,157 26,774,107 25,955,501 43,754,879 46,734,364 45,250,090 43,245,050 47,426,352 51,898,566 40,928,090 Total governmental
activities net position 251,801,562 263,904,363 358,485,448 371,188,427 382,421,532 400,422,165 411,308,460 408,642,054 416,383,399 421,493,212 Business-type activities: Net Investment
in Capital Assets 125,265,152 130,515,163 144,626,496 150,621,492 152,343,987 166,289,542 173,709,864 165,619,867 169,098,916 187,604,782 Restricted 6,987,485 1,227,395 933,914 2,071,219
4,107,128 4,153,982 4,719,058 16,839,589 14,115,610 4,764,340 Unrestricted 25,693,517 40,655,261 35,859,489 29,546,169 28,642,334 30,523,974 30,439,381 32,880,216 37,724,080 32,974,662
Total business-type activities net position 157,946,154 172,397,819 181,419,899 182,238,880 185,093,449 200,967,498 208,868,303 215,339,672 220,938,606 225,343,784 Primary government:
Net Investment in Capital Assets 326,079,215 343,126,395 448,190,844 465,313,474 472,850,688 507,230,654 528,609,158 511,815,660 517,179,421 548,699,024 Restricted 33,826,827 25,746,419
29,899,513 14,812,785 19,287,595 18,384,945 17,883,174 31,859,498 30,519,938 24,235,220 Unrestricted 49,841,674 67,429,368 61,814,990 73,301,048 75,376,698 75,774,064 73,684,431 80,306,568
89,622,646 73,902,752 Total primary government net position $ 409,747,716 $ 436,302,182 $ 539,905,347 $ 553,427,307 $ 567,514,981 $ 601,389,663 $ 620,176,763 $ 623,981,726 $ 637,322,005
$ 646,836,996 Source: City of Auburn, Finance Department City of Auburn, Washington SCHEDULE 1 NET POSITION BY COMPONENTS Last Ten Fiscal Years (Accrual Basis of Accounting)
City of Auburn: 2015 CAFR Statistical Section 15 3 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Expenses Governmental activities: General government $ 6,462,578 $ 7,196,492 $ 8,000,715
$ 7,567,085 $ 7,934,948 $ 8,581,829 $ 9,441,887 $ 7,508,112 $ 8,363,427 $ 9,187,539 Public safety 29,804,864 33,396,630 28,217,844 25,675,063 25,890,627 27,320,805 27,339,301 27,423,015
27,144,153 29,883,217 Transportation 7,619,268 8,077,154 12,974,861 11,471,167 11,989,752 12,123,615 15,736,610 14,861,834 16,150,877 17,324,036 Physical environment 2,418,543 3,269,334
3,096,696 3,327,836 2,498,539 2,327,911 2,535,877 2,699,301 2,976,461 2,924,046 Culture and recreation 5,729,431 6,539,281 6,271,924 7,561,569 7,307,270 7,606,584 8,310,210 9,184,289
11,094,524 12,096,651 Economic environment 1,848,988 2,400,031 2,608,980 3,000,257 2,499,631 3,135,984 2,914,335 2,346,025 2,751,869 3,044,354 Health and human services 763,156 416,456
776,224 527,029 578,247 619,172 633,175 510,285 622,374 925,299 Interest on long-term debt 203,180 163,916 226,651 408,471 1,809,322 1,685,055 2,336,960 3,795,024 3,615,211 1,986,853
Total governmental activities expenses 54,850,008 61,459,294 62,173,895 59,538,478 60,508,335 63,400,955 69,248,355 68,327,885 72,718,896 77,371,995 Business-type activities: Water 7,647,935
7,873,191 8,565,231 8,970,215 10,042,879 8,961,736 9,655,724 11,893,094 11,992,944 13,691,529 Sewer 11,878,252 13,974,607 14,479,299 16,569,297 17,794,958 18,852,402 19,680,724 21,584,215
23,026,216 23,992,161 Storm drainage 3,852,335 4,224,881 5,226,823 7,275,072 6,994,381 6,752,021 8,025,729 7,726,467 7,668,072 8,308,559 Solid waste 9,936,222 10,368,901 10,781,426 11,019,606
9,894,429 9,957,943 11,305,322 12,535,078 12,760,313 12,907,832 Golf course 1,020,070 1,576,126 1,958,703 1,909,758 1,844,108 1,903,836 1,912,174 1,933,597 --Non-major business-type
activities 1,618,285 1,735,118 1,720,603 1,666,754 1,781,204 2,010,776 1,954,104 1,857,252 1,924,874 2,062,695 Total business-type activities expenses 35,953,099 39,752,824 42,732,085
47,410,702 48,351,960 48,438,714 52,533,777 57,529,703 57,372,419 60,962,776 Total primary government expenses $ 90,803,107 $ 101,212,118 $ 104,905,980 $ 106,949,180 $ 108,860,294 $
111,839,669 $ 121,782,132 $ 125,857,588 $ 130,091,315 $ 138,334,771 Program revenues Governmental activities: Charges for services General Government $ 820,585 $ 1,126,258 $ 2,316,125
$ 814,095 $ 1,168,574 $ 1,010,911 $ 897,521 $ 893,326 $ 1,160,198 $ 1,243,263 Public Safety 2,514,867 3,100,973 2,674,777 2,854,530 2,938,942 3,867,013 1,016,191 2,103,823 2,273,903
1,993,117 Transportation 631,340 1,930,504 1,272,751 1,587,850 960,532 1,042,147 1,819,851 1,967,778 1,660,270 1,446,026 Physical Environment 436,503 576,539 257,780 147,996 86,306 103,590
36,766 398,564 276,632 384,485 Culture and Recreation 881,318 1,245,122 917,544 1,048,390 962,558 1,182,688 880,380 873,970 2,876,185 3,052,599 Economic Environment 2,590,763 2,070,534
1,638,579 1,654,692 1,732,397 2,294,916 3,266,188 3,586,844 3,087,853 2,989,579 Health and human services ---989 449 7,528 ----Total charges for services 7,875,376 10,049,930 9,077,556
8,108,542 7,849,758 9,508,793 7,916,897 9,824,305 11,335,041 11,109,069 Operating grants and contributions 2,714,324 2,923,968 2,567,788 3,001,401 3,022,835 1,724,711 3,560,707 1,967,252
1,333,652 4,234,309 Capital grants and contributions 5,174,350 9,213,115 94,905,563 12,806,049 10,702,132 19,730,140 17,835,784 5,955,062 6,001,230 19,526,548 Total governmental activities
program revenues 15,764,050 22,187,013 106,550,907 23,915,992 21,574,725 30,963,644 29,313,388 17,746,619 18,669,923 34,869,926 Business-type activities: Charges for services 36,226,324
38,784,127 39,883,386 42,338,079 43,461,742 45,045,488 50,710,688 57,533,735 60,332,817 63,391,139 Operating grants and contributions 47,961 43,263 55,024 87,454 70,841 116,735 97,052
90,361 111,025 106,286 Capital grants and contributions 3,988,202 12,479,500 10,670,660 1,992,259 7,391,111 15,981,735 7,248,835 5,483,344 5,070,810 5,821,857 Total business-type activities
program revenues 40,262,487 51,306,890 50,609,070 44,417,792 50,923,694 61,143,958 58,056,575 63,107,440 65,514,652 69,319,282 Total primary government program revenues 56,026,537 73,493,903
157,159,977 68,333,784 72,498,419 92,107,602 87,369,963 80,854,059 84,184,575 104,189,208 Net (expense)/revenue Governmental activities (39,085,958) (39,272,281) 44,377,012 (35,622,486)
(38,933,610) (32,437,311) (39,934,967) (50,581,266) (54,048,973) (42,502,069) Business-type activities 4,309,388 11,554,066 7,876,985 (2,992,910) 2,571,734 12,705,244 5,522,798 5,577,737
8,142,233 8,356,506 Total primary government net expense $ (34,776,570) $ (27,718,215) $ 52,253,997 $ (38,615,396) $ (36,361,876) $ (19,732,067) $ (34,412,169) $ (45,003,529) $ (45,906,740)
$ (34,145,563) General revenues and other changes in net posit ion Governmental activities: Taxes: Property taxes $ 15,186,456 $ 16,164,073 $ 10,804,825 $ 13,362,672 $ 14,766,470 $ 15,204,611
$ 14,970,136 $ 14,490,790 $ 15,867,838 $ 17,271,705 Retail sales and use tax 17,784,374 18,958,484 17,620,661 14,727,496 15,657,081 16,213,244 16,679,278 18,335,157 19,744,684 21,125,730
Interfund utility taxes 1,983,652 2,095,901 2,507,213 3,437,526 2,788,083 2,948,297 3,281,816 3,892,250 4,068,667 4,260,831 Utility taxes 5,893,041 6,073,429 8,075,355 9,071,485 8,886,964
9,049,689 8,856,498 9,156,636 9,040,015 8,838,179 Excise taxes 4,568,549 3,862,692 3,477,517 2,310,076 1,389,030 1,859,738 2,141,620 2,555,850 2,888,797 4,999,517 Other taxes 1,859,428
2,005,836 2,949,430 4,607,584 4,622,138 4,644,909 4,679,333 4,429,090 4,601,925 4,722,482 Investment earnings 2,454,694 2,993,174 1,589,837 570,798 379,316 224,593 178,618 121,687 105,117
118,399 Miscellaneous 69,037 (406,847) 2,751,495 67,223 214,190 775,969 547,391 (4,625,627) 178,482 194,600 Transfers (570,588) (371,660) 427,740 170,605 1,463,444 (483,107) (513,428)
(218,230) 5,294,793 (462,955) Total governmental activities 49,228,643 51,375,082 50,204,073 48,325,465 50,166,715 50,437,943 50,821,262 48,137,603 61,790,318 61,068,488 Business-type
activities: Investment earnings 1,574,444 2,098,417 1,242,363 312,618 158,211 101,694 82,903 68,400 51,261 70,560 Miscellaneous 1,602,274 427,522 330,472 3,669,878 1,588,068 2,584,004
1,781,676 763,717 2,700,233 1,881,835 Transfers 570,588 371,660 (427,740) (170,605) (1,463,444) 483,107 513,428 218,230 (5,294,793) 462,955 Total business-type activities: 3,747,306
2,897,599 1,145,095 3,811,891 282,835 3,168,805 2,378,007 1,050,347 (2,543,299) 2,415,350 Total primary government $ 52,975,949 $ 54,272,681 $ 51,349,168 $ 52,137,356 $ 50,449,550 $
53,606,748 $ 53,199,269 $ 49,187,950 $ 59,247,019 $ 63,483,838 Change in net posit ion Before Change in Account ing Principle Governmental activities 10,142,685 12,102,801 94,581,085
12,702,979 11,233,105 18,000,632 10,886,295 (2,443,663) 7,741,345 18,566,419 Business-type activities 8,056,694 14,451,665 9,022,080 818,981 2,854,569 15,874,049 7,900,805 6,628,084
5,598,934 10,771,856 Total primary government $ 18,199,379 $ 26,554,466 $ 103,603,165 $ 13,521,960 $ 14,087,674 $ 33,874,681 $ 18,787,100 $ 4,184,421 $ 13,340,279 $ 29,338,275 Change
in Account ing Principle Governmental activities -------(222,743) -(13,456,606) Business-type activities -------(156,715) -(6,366,678) Total primary government $ -$ -$ -$ -$ -$ -$ -$
(379,458) $ -$ (19,823,284) Change in net posit ion Af ter Change in Account ing Principle Governmental activities 10,142,685 12,102,801 94,581,085 12,702,979 11,233,105 18,000,632 10,886,295
(2,666,406) 7,741,345 5,109,813 Business-type activities 8,056,694 14,451,665 9,022,080 818,981 2,854,569 15,874,049 7,900,805 6,471,369 5,598,934 4,405,178 Total primary government
$ 18,199,379 $ 26,554,466 $ 103,603,165 $ 13,521,960 $ 14,087,674 $ 33,874,681 $ 18,787,100 $ 3,804,963 $ 13,340,279 $ 9,514,991 Source: City of Auburn, Finance Department City of Auburn,
Washington SCHEDULE 2 CHANGES IN NET POSITION Last Ten Fiscal Years (Accrual Basis of Accounting)
City of Auburn: 2015 CAFR Statistical Section 15 4 2006 2007 2008 2009 2010 2011 (1) 2012 2013 2014 2015 General Fund Unreserved $ 14,448,328 $ 14,462,720 $ 13,071,091 $ 13,237,851 $
15,382,354 $ -$ -$ -$ -$ -Nonspendable $ -370,400.0 127 127 127 Assigned $ 7,082,130 5,935,567.0 5,892,611 4,045,598 7,284,159 Unassigned $ 14,193,365 17,395,933.0 17,751,778 20,914,093
20,267,776 Total General Fund 14,448,328 14,462,720 13,071,091 13,237,851 15,382,354 21,275,495 23,701,900 23,644,516 24,959,818 27,552,062 All other governmental funds Reserved 1,376,798
1,501,033 1,507,565 1,538,038 1,592,378 Unreserved, Reported In: Special Revenue Funds 10,738,431 13,124,661 14,463,370 15,184,058 15,486,918 Capital Projects Funds 14,727,423 9,873,331
12,990,032 10,422,360 12,589,604 Permanent Funds 188,524 170,983 144,396 153,503 132,717 Total Unreserved 25,654,378 23,168,975 27,597,798 25,759,921 28,209,239 -Nonspendable 1,453,540
1,475,580 1,536,316 1,574,148 1,585,707 Restricted 12,781,743 11,688,536 13,483,593 14,830,180 17,885,173 Committed 3,134,449 3,258,257 3,242,662 5,066,181 3,658,719 Assigned 3,120,372
2,388,684 4,976,833 4,725,119 4,755,182 Total All Other Governmental Funds $ 27,031,176 $ 24,670,008 $ 29,105,363 $ 27,297,959 $ 29,801,617 $ 20,490,104 $ 18,811,057 $ 23,239,404 $ 26,195,628
$ 27,884,781 (1) GASB Statement No. 54 was implemented in FY 2011. See Note 1E of the Notes to the Basic Financial Statements. Source: City of Auburn, Finance Department City of Auburn,
Washington SCHEDULE 3 FUND BALANCES, GOVERNMENT FUNDS Last Ten Fiscal Years (Modified Accrual Basis of Accounting)
City of Auburn: 2015 CAFR Statistical Section 15 5 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Revenues Taxes $ 44,867,161 $ 46,721,651 $ 43,781,530 $ 42,514,006 $ 43,069,695 $
44,812,975 $ 46,003,582 $ 48,545,041 $ 51,718,489 $ 56,632,337 Licenses and permits 1,683,320 1,606,950 1,110,722 1,326,875 1,311,916 1,769,516 2,344,643 3,041,948 2,400,662 2,074,432
Intergovernmental 6,831,240 5,766,484 8,369,888 9,616,067 9,656,529 16,174,149 20,045,299 11,854,984 9,379,699 13,620,446 Charges for services 3,659,773 5,017,224 3,784,544 3,473,199
3,073,168 2,938,815 4,006,762 3,891,776 5,717,712 7,321,295 Fines and forfeits 1,054,201 2,155,120 2,059,771 1,911,034 2,472,411 1,940,326 1,592,957 1,441,603 1,258,408 938,775 Special
assessments 75,574 52,291 57,402 107,597 43,502 32,972 39,115 40,772 472,800 7,494 Investment earnings 1,477,368 2,456,291 1,363,375 484,696 386,890 237,056 200,826 144,151 135,709 117,942
Miscellaneous 1,865,079 877,473 1,296,349 1,142,428 3,023,589 2,322,580 871,191 621,673 1,691,274 1,890,419 Total revenues 61,513,716 64,653,484 61,823,581 60,575,902 63,037,699 70,228,389
75,104,375 69,581,948 72,774,753 82,603,140 Expenditures General government 6,062,037 6,834,084 7,719,205 7,864,410 7,770,957 8,310,037 8,761,452 7,300,667 7,712,018 8,661,592 Public
safety 29,148,278 33,568,753 26,023,912 25,762,116 24,597,986 27,399,406 24,039,435 27,146,590 27,264,294 29,164,772 Transportation 9,403,147 7,385,929 8,910,967 9,850,579 10,054,434
16,059,156 20,766,134 15,119,530 8,979,583 16,323,425 Physical environment 2,435,201 3,352,466 3,490,636 3,192,089 2,480,641 2,290,328 2,526,526 2,855,908 3,086,738 2,991,145 Economic
environment 1,928,978 2,142,282 2,530,827 3,028,684 2,597,849 3,138,590 2,876,558 2,692,389 2,783,898 3,066,674 Health and human services 763,156 416,456 776,224 527,029 568,911 616,717
616,583 631,997 626,681 925,299 Culture and recreation 5,016,554 6,571,275 6,296,743 6,622,546 6,663,881 6,918,623 7,228,345 7,925,325 9,759,110 10,700,680 Capital outlay (1) 3,822,895
7,346,316 4,778,334 30,338,508 8,486,382 8,597,944 4,007,018 2,746,599 3,394,886 3,580,304 Debt service: Principal 420,631 435,093 456,655 479,661 26,683,671 1,208,512 1,219,137 2,238,181
2,704,468 1,713,940 Interest /other 247,551 203,266 264,997 296,241 1,775,746 1,761,334 2,245,858 2,709,768 2,892,281 1,801,109 Total expenditures 59,248,428 68,255,920 61,248,500 87,961,863
91,680,457 76,300,647 74,287,046 71,366,954 69,203,957 78,928,940 Excess of revenues over (under) expenditures 2,265,288 (3,602,436) 575,081 (27,385,961) (28,642,758) (6,072,258) 817,329
(1,785,006) 3,570,796 3,674,200 Other f inancing sources (uses) Transfers in 8,873,200 6,103,144 7,386,082 6,994,306 9,442,727 7,410,926 6,643,116 4,776,100 5,309,769 7,100,830 Transfers
out (9,554,816) (5,542,988) (7,993,842) (6,997,801) (7,745,568) (6,242,333) (7,005,097) (4,450,925) (5,003,448) (6,668,626) Capital leases -695,504 17,728 24,549,186 ------Insurance
recoveries ---114,607 200,642 154,200 291,210 192,898 136,585 153,041 Issuance of debt 142,313 -360,000 957,278 31,172,273 --3,044,491 240,366 -Issuance of refunding bond ----2,150,000
-----Debt Premium ----305,844 -----Payment to escrow agent -refunded bond ----(2,235,000) -----Sales of capital assets 127,959 -2,698,677 127,741 -1,331,092 800 2,593,405 17,458 21,952
Total other financing sources (uses) (411,344) 1,255,660 2,468,645 25,745,317 33,290,918 2,653,885 (69,971) 6,155,969 700,730 607,197 Net change in fund balances $ 1,853,944 $ (2,346,776)
$ 3,043,726 $ (1,640,644) $ 4,648,159 $ (3,418,373) $ 747,358 $ 4,370,963 $ 4,271,526 $ 4,281,397 Debt service as a percentage of noncapital 1.39% 1.12% 1.42% 1.54% 37.50% 5.44% 6.64%
8.71% 10.68% 5.50% expenditures (1) Capital outlay reported in governmental funds for 2015 are $3,580,304 plus $11,401,835 which is reported for each functional activity with the other
funds results in total capital outlay of $14,982,139 as reported on the Reconciliation of the Statement of Renevues, Expenditures, and Changes in Fund Balances of Government Funds to
the Statement of Activities. Source: City of Auburn, Finance Department City of Auburn, Washington SCHEDULE 4 CHANGES IN FUND BALANCES, GOVERNMENT FUNDS Last Ten Fiscal Years (Modified
Accrual Basisi of Accouting)
City of Auburn: 2015 CAFR Statistical Section 15 6 Fiscal Sales Interfund Year Property & Use Utility Utility Excise Other Total 2006 14,582,829 17,784,374 1,983,652 5,893,041 4,568,549
54,716 44,867,161 2007 15,666,016 18,958,484 2,095,901 6,073,429 3,862,692 65,129 46,721,651 2008 12,040,124 17,620,661 2,507,213 8,075,355 3,477,517 60,660 43,781,530 2009 12,914,943
14,727,496 3,437,526 9,071,485 2,310,076 52,480 42,514,006 2010 14,283,303 15,657,081 2,788,083 8,886,964 1,389,030 65,234 43,069,695 2011 14,683,329 16,213,244 2,948,297 9,049,689 1,859,738
58,678 44,812,975 2012 14,987,636 16,679,278 3,281,816 8,856,498 2,141,620 56,734 46,003,582 2013 14,535,673 18,335,157 3,892,250 9,156,636 2,555,850 69,475 48,545,041 2014 15,933,338
19,744,684 4,068,667 9,040,015 2,888,797 42,988 51,718,489 2015 17,337,108 21,125,730 4,260,831 8,838,179 4,999,517 70,972 56,632,337 Change 2006-2015 18.9% 18.8% 114.8% 50.0% 9.4% 29.7%
26.2% Source: City of Auburn, Finance Department TAX REVENUES BY SOURCE, GOVERNMENT FUNDS Last Ten Fiscal Years SCHEDULE 5 City of Auburn, Washington $0 $10,000 $20,000 $30,000 $40,000
$50,000 $60,000 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Thousands Figure 5: Tax Revenues by Source 2006-2015 Excise & other Utility Interfund utility Sales & use Property
City of Auburn: 2015 CAFR Statistical Section 15 7 State Total Total Fiscal Property Personal Land and Assessed Direct Year and Other Property Building Value Rate 2006 101,419 607,875
5,055,734 5,765,028 2.73 2007 107,302 635,352 5,783,641 6,526,295 1.48 2008 112,101 640,004 5,804,585 6,556,690 1.49 2009 121,918 764,857 7,837,089 8,723,864 (*) 1.49 2010 114,661 715,534
6,935,683 7,765,878 1.82 2011 126,415 726,944 6,711,148 7,564,507 1.93 2012 124,204 709,024 6,392,321 7,225,550 2.08 2013 124,230 745,891 6,098,598 6,968,719 2.10 2014 132,854 880,015
6,409,300 7,422,169 2.17 2015 146,941 911,493 7,308,219 8,366,653 2.08 Source: King County Dept of Assessments & Pierce County Assessor-Treasurer (*) In 2009, Total Assessed Value increased
significantly due to annexations of Lea Hill and West Hill areas (Amounts Expressed in Thousands) City of Auburn, Washington SCHEDULE 6 ASSESSED VALUE BY TYPE Last Ten Fiscal Years $0
$1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 $7,000,000 $8,000,000 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Figure 6: Assessed Value by Type 2006 -2015
State property Personal property Land and building
City of Auburn: 2015 CAFR Statistical Section 15 8 Page 1 of 2 Item 2006 2007 2008 (2) 2009 Assessed and est imated actual values (1) Estimated and actual value (in thousands) $ 5,765,028
$ 6,526,295 $ 6,556,690 $ 8,723,864 Assessed value (in thousands) 5,765,028 6,526,295 6,556,690 8,723,864 Ratio of assessed to actual 100% 100% 100% 100% Property tax rates (1) Direct
regular and special General fund $ 2.73076 $ 1.48385 $ 1.48385 $ 1.48678 Debt service funds ----Subtotal 2.73076 1.48385 1.48385 1.48678 Overlapping regular and special (1) Auburn School
District $ 4.94903 $ 4.40970 $ 4.40970 $ 4.37709 King County 1.28956 1.20770 1.20770 1.09772 State of Washington 2.32535 2.13233 2.13233 1.96268 Port of Seattle 0.23158 0.22359 0.22359
0.19700 Emergency Medical Services 0.20621 0.30000 0.30000 0.27404 Hospital District 0.55652 0.50854 0.50854 0.47141 King County Library District 0.50027 0.45336 0.45336 0.41736 Valley
Regional Fire Authority -1.00000 1.00000 1.10995 King County Flood Zone -0.10000 0.10000 0.91230 King County Ferry District -0.05500 0.05500 0.05018 Subtotal 10.05852 10.39022 10.39022
10.86973 Total direct and overlapping $ 12.78928 $ 11.87407 $ 11.87407 $ 12.35651 Sources: (1) King County and Pierce County Deparments of Assessments; real and personal property has
been assessed at 100% of the estimated actual value. (2) The 2008 decrease in property tax levy to $1.48 is due to the incorporation of the Valley Regional Fire Authority effective 1/1/2007.
The VRFA will assess its own property tax levy in 2008, partially offsetting what was previously levied by the City. City of Auburn, Washington SCHEDULE 7 PROPERTY TAX DATA Last Ten
Fiscal Years $1.00 $1.50 $2.00 $2.50 $3.002006 2007 2008 (2) 2009 2010 2011 2012 2013 2014 2015 Per $1,000 of Assessed Valuation Figure 7a: Ten Years City Property Tax Rates 2006 -2015
City of Auburn: 2015 CAFR Statistical Section 15 9 Page 2 of 2 2010 2011 2012 2013 2014 2015 $ 7,765,878 $ 7,564,507 $ 7,225,550 $ 6,968,719 $ 7,422,169 $ 8,366,653 7,765,878 7,564,507
7,225,550 6,968,719 7,422,169 8,366,653 100% 100% 100% 100% 100% 100% $ 1.82336 $ 1.93458 $ 2.07527 $ 2.10000 $ 2.16739 $ 2.08085 ------1.82336 1.93458 2.07527 2.10000 2.16739 2.08085
$ 5.09382 $ 5.99562 $ 6.14004 $ 6.62190 $ 6.50262 $ 6.14079 1.28499 1.33816 1.41588 1.54051 1.51605 1.34522 2.22253 2.27990 2.42266 2.56720 2.47044 2.28514 0.21597 0.22366 0.22982 0.23324
0.21533 0.18885 0.30000 0.30000 0.30000 0.30000 0.33500 0.30217 0.53290 0.55753 0.50000 0.50000 0.50000 0.50000 0.48526 0.56621 0.56992 0.56743 0.56175 0.50276 1.17910 1.17977 1.18925
1.20479 1.20294 1.18043 0.10514 0.10976 0.11616 0.13210 0.15369 0.13860 0.00348 0.00360 0.00372 0.00378 0.00349 -11.42319 12.55421 12.88745 13.67095 13.46131 12.58396 $ 13.24655 $ 14.48879
$ 14.96272 $ 15.77095 $ 15.62870 $ 14.66481 $0.00 $2.00 $4.00 $6.00 $8.00 $10.00 $12.00 $14.00 2006 2007 2008 (2) 2009 2010 2011 2012 2013 2014 2015 Dollars (Rate Per Thousand) Figure
7b: Property Tax Rates Last Ten Fiscal Years Hospital District King County Ferry District King County Flood Zone Valley Regional Fire Authority King County Library District Emergency
Medical Services Port of Seattle State of Washington King County Auburn School District
City of Auburn: 2015 CAFR Statistical Section 16 0 Total Tax Collections Fiscal Levy for in Subsequent Current Year Year Fiscal Year Amount % of Levy Years Amount % of Levy Levy Balance
King County: 2006 13,399,723 $ 13,164,248 98.2% 234,987 $ 13,399,235 100.0% $ 488 2007 13,843,007 13,605,301 98.3% 237,480 13,842,781 100.0% 227 2008 9,551,512 9,406,398 98.5% 144,084
9,550,482 100.0% 1,030 2009 11,680,648 11,390,684 97.5% 280,241 11,670,925 99.9% 9,723 2010 12,714,025 12,459,564 98.0% 250,898 12,710,462 100.0% 3,563 2011 13,071,507 12,846,996 98.3%
223,115 13,070,111 100.0% 1,396 2012 13,392,182 13,167,731 98.3% 217,136 13,384,867 99.9% 7,315 2013 12,890,658 12,673,712 98.3% 195,423 12,869,135 99.8% 21,523 2014 14,171,043 13,970,560
98.6% 142,398 14,112,958 99.6% 58,085 2015 15,393,537 15,226,048 98.9% -15,226,048 98.9% 167,489 $ 270,839 Pierce County: 2006 1,242,038 $ 1,220,642 98.3% 21,376 $ 1,242,018 100.0% $
20 2007 1,851,622 1,816,706 98.1% 34,876 1,851,582 100.0% 40 2008 1,226,764 1,177,665 96.0% 49,073 1,226,738 100.0% 26 2009 1,264,380 1,223,668 96.8% 40,688 1,264,356 100.0% 25 2010
1,489,759 1,451,377 97.4% 38,352 1,489,729 100.0% 30 2011 1,425,411 1,401,537 98.3% 23,838 1,425,375 100.0% 36 2012 1,495,420 1,478,223 98.9% 17,038 1,495,262 100.0% 159 2013 1,484,398
1,471,129 99.1% 11,212 1,482,341 99.9% 2,057 2014 1,595,567 1,586,010 99.4% 6,605 1,592,615 99.8% 2,951 2015 1,746,418 1,738,447 99.5% -1,738,447 99.5% 7,972 $ 13,315 Total current levy
balance $ 284,154 Source: King County Finance and Business Operations Division Pierce County Budget and Finance Department Fiscal Year of the Levy Total Collections to Date City of Auburn,
Washington SCHEDULE 8 PROPERTY TAX LEVIES AND COLLECTIONS Last Ten Fiscal Years Collected Within the 95.0% 95.5% 96.0% 96.5% 97.0% 97.5% 98.0% 98.5% 99.0% 99.5% 100.0%2006 2007 2008
2009 2010 2011 2012 2013 2014 2015 FIGURE 8: TEN YEARS COLLECTION OF LEVIED PROPERTY TAXES Last Ten Fiscal Years Collection percentage within the fiscal year of the levy Total collection
percentage
City of Auburn: 2015 CAFR Statistical Section 16 1 Percentage Percentage of Total City of Total City Assessed Taxable Assessed Taxable Taxpayer Value Rank Assessed Value Value Rank Assessed
Value Boeing $ 549,141,832 1 6.56% $ 422,433,478 1 7.33% Glimcher Supermall Venture 102,455,418 2 1.22% 101,498,338 3 1.76% Puget Sound Energy 92,835,660 3 1.11% 47,304,914 8 0.82% EProperty
Tax Inc. 79,001,900 4 0.94% 72,209,900 4 1.25% Safeway 74,053,520 5 0.89% 141,423,418 2 2.45% Belara Communities LLC 54,061,800 6 0.65% -PPF Industrial (formerly UPS Supply Chain Solutions)*
45,129,700 7 0.54% 53,372,100 7 0.93% Wal-Mart Property 27,591,900 8 0.33% -Muckleshoot Indian Tribe 20,830,100 9 0.25% 57,037,500 5 0.99% Qwest Corporation 20,179,099 10 0.24% 22,972,373
10 0.40% Auburn Warehouse LLC -53,372,100 6 0.93% Complex Property Advisors Corp. -45,488,402 9 0.79% TOTALS $ 1,065,280,929 12.73% $ 1,017,112,523 17.64% * In the 2006 CAFR, this was
reported as Shanna Lehman. Source: King County and Pierce County Departments of Assessments Total assessed value for 2015: $ 8,366,652,723 Total assessed value for 2006: $ 5,765,028,000
2015 2006 City of Auburn, Washington SCHEDULE 9a PRINCIPAL TAXPAYERS-PROPERTY TAXES Current Year and Nine Years Ago 0% 5% 10% 15% 20% 25% 2006 2015 FIGURE 9a-1: TOP TAXPAYER ASSESSED
VALUE AS A PERCENTAGE OF TOTAL ASSESSED VALUE Current Year and Nine Years Ago 0% 5% 10% 15% 20% 25% 2006 2015 FIGURE 9a-2: TOP 10 TAXPAYERS ASSESSED VALUE AS A PERCENTAGE OF TOTAL ASSESSED
VALUE Current Year and Nine Years Ago Percentage Percentage Sales of Total City Sales of Total City Tax Sales Taxes Tax Sales Taxes Received Sector (1) Rank Received Received Sector
(1) Rank Received $ 503,003 Transportation Manufacturing 1 3.0% $ 467,764 Automotive 1 2.9% 466,181 Automotive 2 2.8% 438,316 General Retail 2 2.7% 449,995 General Retail 3 2.7% 400,086
General Retail 3 2.5% 444,616 Automotive 4 2.6% 332,136 General Retail 4 2.1% 349,222 Automotive 5 2.1% 320,856 Automotive 5 2.0% 323,965 Automotive 6 1.9% 254,191 Automotive 6 1.6%
266,295 Bldg. Material & Garden 7 1.6% 248,825 Automotive 7 1.5% 254,760 General Retail 8 1.5% 233,612 General Retail 8 1.4% 248,552 Construction of Buildings 9 1.5% 225,363 General
Retail 9 1.4% 231,888 Automotive 10 1.4% 224,087 Distribution 10 1.4% $ 3,538,477 21.0% $ 3,145,236 19.4% Source: Washington State Department of Revenue (1) It is illegal to disclose
specific taxpayer sales tax information, so the above information is being provided without identification 2015 2006 City of Auburn, Washington SCHEDULE 9b PRINCIPAL TAXPAYERS-SALES
TAXES Current Year and Ten Years Ago
City of Auburn: 2015 CAFR Statistical Section 16 2 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 RETAIL TRADE SECTOR Automotive/gas $ 3,428 $ 3,643 $ 3,255 $ 2,559 $ 2,553 $ 2,785
$ 3,019 $ 3,136 $ 3,309 $ 3,707 Furniture 263 268 241 220 194 218 226 235 254 254 Electronics & appliances 288 262 242 132 121 127 145 174 237 295 Building materials 594 615 521 358
389 383 425 447 502 590 Food stores 346 378 360 352 354 331 341 335 353 368 Health & personal care 130 143 152 150 144 148 149 174 188 221 Apparel 874 899 873 781 752 754 772 889 1,009
1,080 General merchandise 941 974 872 833 801 968 967 974 955 988 Misc retail trade 939 1,334 1,234 755 834 851 897 990 1,182 1,193 7,803 8,516 7,750 6,140 6,142 6,566 6,943 7,354 7,989
8,695 SERVICE SECTOR Information 507 531 489 457 979 481 396 446 487 526 Finance & insurance 84 85 85 83 68 66 53 91 88 95 Real estate, rental, leasaing 311 330 394 304 288 304 326 279
315 334 Professional, scientific, technical 116 162 146 200 191 175 173 184 216 195 Administrative, supply & remediation services 195 301 261 261 239 295 334 336 350 383 Educational
81 87 91 42 56 53 54 50 49 60 Healthcare & social serivces 33 88 98 61 37 41 115 33 66 82 Arts & entertainment 126 172 171 147 154 149 153 149 158 208 Accomodation & food service 833
870 915 827 806 839 921 979 1,067 1,159 Other services 492 502 457 485 493 482 530 507 526 603 2,779 3,128 3,107 2,867 3,310 2,882 3,056 3,054 3,322 3,646 OTHER SECTORS Construction
2,453 2,240 1,647 1,368 1,322 1,296 1,221 1,943 1,754 2,297 Manufacturing 486 625 643 383 411 583 405 624 1,163 862 Transportation 26 22 76 31 29 77 55 46 71 66 Wholesaling 2,571 2,943
2,306 1,073 1,180 1,260 1,297 1,279 1,205 1,229 Other business 72 143 72 47 128 224 61 64 120 72 Subtotal -other sectors 5,607 5,973 4,744 2,902 3,071 3,439 3,038 3,956 4,312 4,525 GRAND
TOTAL $ 16,189 $ 17,617 $ 15,601 $ 11,909 $ 12,523 $ 12,887 $ 13,037 $ 14,364 $ 15,623 $ 16,866 OVERLAPPING SALES TAX RATES Basic sales tax rates City of Auburn 0.85% 0.85% 0.85% 0.85%
0.85% 0.85% 0.85% 0.85% 0.85% 0.85% Washington State 6.50% 6.50% 6.50% 6.50% 6.50% 6.50% 6.50% 6.50% 6.50% 6.50% King County 0.15% 0.15% 0.25% 0.25% 0.25% 0.25% 0.25% 0.25% 0.25% 0.25%
Regional Transit Authority 0.40% 0.40% 0.40% 0.90% 0.90% 0.90% 0.90% 0.90% 0.90% 0.90% Metro 0.80% 0.90% 0.90% 0.90% 0.90% 0.90% 0.90% 0.90% 0.90% 0.90% Criminal Justice 0.10% 0.10%
0.10% 0.10% 0.10% 0.10% 0.10% 0.10% 0.10% 0.10% Total basic sales tax rate 8.80% 8.90% 9.00% 9.50% 9.50% 9.50% 9.50% 9.50% 9.50% 9.50% Special sales tax rates Restaurants-for stadium
funding (1) 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.00% 0.00% 0.00% 0.00% Motor vehicles-for multimodal transportation 0.30% 0.30% 0.30% 0.30% 0.30% 0.30% 0.30% 0.30% 0.30% 0.30% (1) This
tax expired on October 1, 2011 Source: City of Auburn Finance Department and State of Washington (Amounts Expressed in Thousands) City of Auburn, Washington SCHEDULE 10 RETAIL TAX COLLECTIONS
BY SECTOR Last Ten Fiscal Years $0 $2,000 $4,000 $6,000 $8,000 $10,000 $12,000 $14,000 $16,000 $18,000 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 (Thousands) FIGURE 10: RETAIL
TAX COLLECTIONS City of Auburn: 2006 -2015 Other Wholesaling Manufacturing Contracting Services Other Retail Automotive
City of Auburn: 2015 CAFR Statistical Section 16 3 General Special Public Works Total Percentage Fiscal Obligation Assessment Capital Revenue Trust Fund Primary of Personal Per Year
Bonds Bonds Leases Bonds Loans Government Income (1) Capita 2006 $ 11,210,000 $ 36,827 $ -$ 5,905,000 $ 9,853,410 $ 27,005,237 3.04% 551.63 2007 10,650,000 36,827 663,553 4,730,000 10,149,419
26,229,799 2.77% 519.71 2008 10,053,000 36,827 646,799 3,495,000 9,730,324 23,961,950 1.82% 357.61 2009 36,160,850 36,827 25,193,600 2,200,000 10,014,943 73,606,220 4.11% 1,090.70 2010
64,816,850 -604,685 23,220,000 10,296,024 98,937,559 5.35% 1,449.21 2011 63,430,850 -566,212 22,930,000 9,491,810 96,418,872 5.07% 1,363.68 2012 61,900,771 -524,498 23,057,333 8,687,599
94,170,201 5.05% 1,321.87 2013 59,568,505 -480,771 34,292,569 12,442,903 106,784,748 5.57% 1,458.11 2014 57,367,766 -435,068 32,813,473 11,808,711 102,425,018 5.12% 1,372.44 2015 55,094,519
-569,773 31,304,378 11,650,644 98,619,314 4.85% 1,305.44 City of Auburn, Washington Last Ten Fiscal Years Govrnmental Activities Business-type Activities RATIOS OF OUTSTANDING DEBT BY
TYPE SCHEDULE 11 -300 600 900 1,200 1,5002006 2007 2008 2009 2010 2011 2012 2013 2014 2015 FIGURE 11: PER CAPITA DEBT Last Ten Fiscal Years
City of Auburn: 2015 CAFR Statistical Section 16 4 Parks and Utility Total Councilmanic Excess Levy Open Spaces Purpose Capacity December 31, 2015 -Total Assessed Value: $ 8,826,618,865
2.5% of Assessed Value $ -$ 220,665,472 $ 220,665,472 $ 220,665,472 $ 661,996,416 1.5% of Assessed Value 132,399,283 (132,399,283) ---Statutory Debt Limit 132,399,283 88,266,189 220,665,472
220,665,472 661,996,416 Debt Outstanding 59,408,629 ---59,408,629 Net Debt Outstanding 59,408,629 ---59,408,629 Remaining Debt Capacity $ 72,990,654 $ 88,266,189 $ 220,665,472 $ 220,665,472
$ 602,587,787 General Capacity Special Purpose Capacity City of Auburn, Washington SCHEDULE 12 COMPUTATION OF LEGAL DEBT MARGIN As of December 31, 2015 2006 2007 2008 2009 2010 2011
2012 2013 2014 2015 Debt Limit $ 432,377 $ 489,472 $ 653,979 $ 577,669 $ 565,822 $ 539,989 $ 518,188 $ 546,602 $ 617,872 $ 661,996 Total net debt applicable to limit 11,352 10,757 10,771
62,671 66,868 65,364 63,815 64,047 61,892 59,409 Legal debt margin $ 421,025 $ 478,715 $ 643,208 $ 514,998 $ 498,954 $ 474,625 $ 454,372 $ 482,554 $ 555,980 $ 602,588 Total net debt
applicable to the limit as a percentage of debt limit 2.63% 2.20% 1.65% 10.85% 11.82% 12.10% 12.32% 11.72% 10.02% 8.97% City of Auburn, Washington SCHEDULE 13 LEGAL DEBT MARGIN RATIOS
Last Ten Fiscal Years (Expressed in Thousands)
City of Auburn: 2015 CAFR Statistical Section 16 5 Net Debt Percent Bonded Amount Outstanding Applicable (3) Applicable Net direc t debt: Net direct debt -City of Auburn (1) $ 59,057,602
Estimated net over lapping debt: (2) King County $ 829,126,323 1.92% $ 15,919,225 Port of Seattle 305,535,000 1.92% 5,866,272 School District No. 210 179,917,615 2.64% 4,749,825 School
District No. 408 155,750,000 78.64% 122,481,800 School District No. 415 144,334,997 1.28% 1,847,488 Rural Library District 109,205,000 3.25% 3,549,163 Valley Regional Fire Authority
14,560,000 90.52% 13,179,712 Pierce County 154,086,008 1.02% 1,571,677 Total estimated net overlapping debt 169,165,162 Total direct and overlapping debt $ 228,222,764 Sources: (1) City
of Auburn finance department; includes both bonded and non bonded debt related to government activities (2) Overlapping governments (3) King County Assessors office and Pierce County
Assessors office. Calculation of overlapping debt: applicable percentage is determined by the ratio of assessed valuation of taxable property in overlapping unit to valulation of property
subject to taxation in the City of Auburn. COMPUTATION OF NET DIRECT AND ESTIMATED OVERLAPPING DEBT As of December 31, 2015 City of Auburn, Washington SCHEDULE 14
City of Auburn: 2015 CAFR Statistical Section 16 6 Ratio of Net Debt Net Bonded Net Assessed Net Service Bonded Debt to Bonded Fiscal Value (1) Bonded Amount (3) Debt Assessed Debt per
Year Population (Thousands) Debt (2) Available (Thousands) Value Capita 2006 48,955 5,765,028 $ 11,210,000 $ 25,372 $ 11,185 0.19% $ 229 2007 50,470 6,526,295 10,650,000 35,810 10,614
0.16% 211 2008 67,005 6,556,690 10,053,000 41,603 10,011 0.15% 150 2009 67,485 8,723,864 36,160,850 37,746 36,123 0.41% 536 2010 68,270 7,765,878 64,816,850 46,058 64,771 0.83% 949 2011
70,705 7,564,507 63,430,850 45,754 63,385 0.84% 897 2012 71,240 7,225,550 61,900,771 46,155 61,855 0.86% 869 2013 73,235 6,968,719 59,568,505 -59,569 0.85% 813 2014 74,630 7,422,169
57,367,766 -57,368 0.77% 769 2015 75,545 8,366,653 55,094,519 -55,095 0.66% 729 Notes: (1) From Schedule 6 (2) Amount includes both bonded and non bonded debt related to government activities
(3) Fund balance from debt service fund. RATIOS OF NET GENERAL BONDED DEBT TO ASSESSED VALUE AND GROSS BONDED DEBT PER CAPITA Last Ten Fiscal Years City of Auburn, Washington SCHEDULE
15 $0 $200 $400 $600 $800 $1,000 -0.0020 0.0040 0.0060 0.0080 0.01002006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Debt/Assessed Value Year FIGURE 15: BONDED DEBT RATIOS Last Ten
Fiscal Years Debt/AV Debt/Pop
City of Auburn: 2015 CAFR Statistical Section 16 7 Direct(2) Debt Service Requirements Gross (1) Operating Net Revenue Times Year Revenue Expense Available Principal Interest Total (3)
Coverage 2006 27,087,351 19,615,315 $ 7,472,036 $ 1,718,412 $ 333,016 $ 2,051,428 3.64 2007 27,492,779 21,237,294 6,255,485 1,914,523 281,065 2,195,588 2.85 2008 27,665,498 23,149,802
4,515,696 1,942,938 279,765 2,222,703 2.03 2009 31,265,941 27,314,611 3,951,330 2,002,938 217,283 2,220,221 1.78 2010 33,115,398 28,749,877 4,365,520 1,056,094 150,675 1,206,769 3.62
2011 34,909,200 29,201,088 5,708,112 1,013,830 1,248,612 2,262,442 2.52 2012 38,119,472 30,974,506 7,144,966 1,028,830 1,277,285 2,306,115 3.10 2013 42,406,722 36,406,640 6,000,082 1,943,830
1,508,405 3,452,235 1.74 2014 46,900,016 35,502,812 11,397,204 2,197,667 1,599,347 3,797,014 3.00 2015 49,673,159 38,425,799 11,247,360 2,231,093 1,563,433 3,794,526 2.96 Source: City
of Auburn, Finance Department (1) Includes water, sewer & storm drainage operating, interest and other revenues. (2) Includes water, sewer & storm drainage operating expenses less depreciation.
(3) Includes both parity and non-parity debt. PLEDGED REVENUE BOND COVERAGES Last Ten Fiscal Years City of Auburn, Washington SCHEDULE 16 $0 $2,000,000 $4,000,000 $6,000,000 $8,000,000
$10,000,000 $12,000,0002006 2007 2008 2009 2010 2011 2012 2013 2014 2015 YEAR FIGURE 16: UTILITY BOND COVERAGES Last Ten Fiscal Years Net revenue available Debt service requirements
City of Auburn: 2015 CAFR Statistical Section 16 8 Item 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 School enrollment (1) 14,367 14,559 14,716 14,589 14,482 14,363 14,596 14,971
15,248 15,536 Rate of unemployment (2) 4.8% 4.2% 5.5% 9.5% 9.6% 8.7% 7.7% 6.0% 5.3% 4.6% Population (3) 48,955 50,470 67,005 67,485 68,270 70,705 71,240 73,235 74,630 75,545 Personal
income (thousands of dollars) (4) $ 1,342,836 $ 1,444,855 $ 2,024,087 $ 1,989,660 $ 1,848,752 $ 1,901,540 $ 1,871,973 $ 1,917,219 $ 2,000,606 $ 2,033,520 Per capita personal income (4)
$ 27,430 $ 28,628 $ 30,208 $ 29,483 $ 27,080 $ 26,894 $ 26,277 $ 26,179 $ 26,807 $ 26,918 Housing units (5) One unit 9,402 9,625 14,186 14,235 14,333 14,823 14,957 15,393 15,804 16,042
Two or more 8,943 9,623 10,375 10,391 10,426 10,592 10,631 10,841 10,841 10,847 Mobile home or special 2,407 2,382 2,761 2,782 2,794 2,635 2,618 2,630 2,631 2,637 Total housing units
20,752 21,630 27,322 27,408 27,553 28,050 28,206 28,864 29,276 29,526 Sources: (1) Auburn School District No. 408 (2) Bureau of Labor Statistics (3) WA State Office of Financial Management
(4) US Census Bureau (5) WA State Office of Financial Management City of Auburn, Washington SCHEDULE 17 POPULATION, INCOME AND HOUSING TRENDS Last Ten Fiscal Years 0 20,000 40,000 60,000
80,0002006 2007 2008 2009 2010 2011 2012 2013 2014 2015 FIGURE 17: POPULATION AND HOUSING TRENDS Last Ten Fiscal Years Population Total housing units
City of Auburn: 2015 CAFR Statistical Section 16 9 Percentage Percentage of Total City of Total City Employer Product/service Employees Rank Employment Employees Rank Employment The
Boeing Company Aerospace 5,993 1 16.3% 4,200 1 11.7% The Outlet Collection Retail 3,208 2 8.7% Auburn School District Education 2,410 3 6.5% 1,995 3 5.5% Muckleshoot Tribal Enterprises
Gaming 1,650 4 4.5% 2,100 2 5.8% Multicare Auburn Medical Center* Hospital 1,580 5 4.3% 625 5 1.7% Green River Community College Education 1,315 6 3.6% 850 4 2.4% Emerald Downs Racetrack
Horse racing 1,162 7 3.2% 500 8 1.4% Safeway Distribution Center Distribution Center 870 8 2.4% Social Security Administration Gov't /public offices 660 9 1.8% 600 6 1.7% Zones, Inc.
Technology reseller 644 10 1.7% 500 9 1.4% Certainteed Corporation Construction -575 7 1.6% City of Auburn City government 455 10 1.3% TOTALS 19,492 52.9% 12,400 34.5% Sources: WA Employment
Security Department * Was previously Auburn Regional Medical Center. 2015 -City of Auburn, Economic Development 2006 -City of Auburn, 2006 CAFR 2015 2006 City of Auburn, Washington SCHEDULE
18 MAJOR EMPLOYERS Current Year and Nine Years Ago 0% 20% 40% 60% 80% 100% 2006 2015 FIGURE 18a: AUBURN EMPLOYMENT BASE PERCENTAGE OF TOP EMPLOYER COMPARED TO ALL EMPLOYERS Last Ten
Fiscal Years Top employer All employers 0% 20% 40% 60% 80% 100% 2006 2015 FIGURE 18b: AUBURN EMPLOYMENT BASE PERCENTAGE OF TOP 10 EMPLOYERS COMPARED TO ALL EMPLOYERS Last Ten Fiscal
Years Top 10 employers All employers
City of Auburn: 2015 CAFR Statistical Section 17 0 Department 2006 2007 2008 2009 2010(3) 2011 2012 2013 2014 2015 Mayor 10 11 12 12 10 10 7 7 3.0 3.0 Administration (5) --------8.0
8.0 Human Resources 15 17 18 9 7 7 8 8 8.0 8.0 Finance 23 24 25 25 21 22 22 23 23.0 23.0 Municipal Court (4) 15 17 21 21 17 19 --0.0 0.0 Legal 13 14 16 16 13 13 13 13 14.0 14.0 Community
Development (6) 25 29 34 34 24 24 28 29 25.0 26.0 Police 118 121 152 152 131 118 122 125 126.0 129.0 Fire (1) 82 -------0.0 0.0 Public Works 48 54 63 63 43 43 43 48 49.0 49.0 Parks,
Arts and Recreation (7) 36 38 40 40 35 36 36 36 45.0 45.0 Street 11 15 14 14 12 19 19 19 19.0 19.0 Water 16 19 20 20 22 22 22 22 24.0 23.0 Sewer 8 11 11 11 11 12 11 10 10.0 10.0 Storm
Drainage 9 12 16 17 16 10 10 10 10.0 10.0 Solid Waste 2 2 2 2 2 2 2 2 2.0 2.0 Cemetery 6 7 7 7 7 7 7 5 5.0 5.0 Golf Course (7) 6 9 9 9 8 8 8 8 0.0 0.0 Facilities (2) ---10 10 10 9 9
9.0 10.0 Multi-Media (8) --------3.6 3.6 Innovation & Technology 11 15 18 18 14 14 18 18 15.0 16.0 Equipment Rental 9 9 10 11 6 6 7 10 12.0 12.0 TOTAL 463 424 488 490 408 401 391 402
410.6 415.6 Source: City of Auburn Finance Department (1) separate legal entity effective 1/1/07. (2) Facilities Division was previously included in the Human Resources Department prior
to the creation of a new Internal Service fund in 2009. (3) Due to the economic downturn, the City eliminated 82.5 of the total 490 positions in 2010. (4) In 2012, the City contracted
out the Municipal Court to the King County District Court -resulting in a reduction of 19 positions. (5) In 2014 the Administration Department was created and consists of 8 FTE's who
were reorganized from several existing departments such as the Mayors Department, Public Works and Community Development. This department includes Emergency Management, Public Affairs,
Economic Development, Human Services, Veterans Services and Community Services. (6) In 2014 the Planning Department was renamed Community Development. (7) In 2014 the Golf Course fund
was reclassified from an Enterprise Fund and included within the General Fund moving 8 of the Golf Course FTE's to the Parks, Arts and Recreation Department. (8) In 2014 the Multi-Media
division was reorganized from the Innovation & Technology Fund into it's own Internal Service Fund. The 3.6 FTE's report to the Director of Administration. City of Auburn, Washington
SCHEDULE 19 STAFFING LEVELS BY DEPARTMENT Last Ten Fiscal Years No data is presented for Fire employees for 2007 and thereafter due to the incorporation of the Fire department into a
-20 40 60 80 100 120 140 160 Number of Employees FIGURE 19: STAFFING LEVELS BY TYPE OF SERVICE Last Ten Fiscal Years 2006 2007 2008 2009 2010(3) 2011 2012 2013 2014 2015
City of Auburn: 2015 CAFR Statistical Section 17 1 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Planning Commercial permits 248 214 95 112 18 38 24 32 64 52 Commercial construction
value ($1,000's) $ 63,658 $ 63,658 $ 22,887 $ 58,896 $ 8,386 $ 10,904 $ 13,219 $ 28,357 $ 35,786 $ 36,289 Residential permits 485 293 165 85 184 229 461 464 374 253 Residential construction
value ($1,000's) $ 61,872 $ 61,872 $ 27,048 $ 15,739 $ 36,602 $ 43,574 $ 98,212 $ 96,248 $ 83,007 $ 62,043 Pol ice Crimes: Arson 36 30 24 19 23 29 27 14 32 -Aggravated Assault 158 143
154 163 137 148 110 145 156 186 Burglary 686 590 630 590 725 757 983 651 810 851 DUI 158 145 194 193 192 214 171 138 126 188 Homicide -1 -3 3 2 6 5 1 8 Narcotics 493 368 439 440 442
396 383 279 458 511 Rape 24 12 14 13 15 23 23 26 31 31 Robbery 122 92 102 92 79 107 110 109 104 91 Theft 2,216 1,962 2,343 2,362 2,533 2,435 2,415 2,583 3,192 2,728 Theft -motor vehicle
642 672 639 370 569 600 588 678 630 996 Traffic: Non-criminal 4,978 6,865 6,794 7,788 7,182 5,400 4,922 5,378 6,520 5,489 Parking 3,965 4,802 3,740 4,026 4,648 3,383 1,946 2,052 5,238
3,737 Fire ( 1 ) Type of response: Building 98 ---------Non-building 238 ---------Alarm systems 524 ---------Service 618 ---------Other 979 ---------First Aid 5,616 ---------Parks and
Recreat ion Athletic teams 459 479 416 428 439 429 388 382 358 321 Recreation activities 2,069 2,719 2,056 2,335 2,281 3,462 3,833 3,568 3,557 3,511 Golf course rounds 43,454 50,500
54,993 50,572 49,950 45,484 45,704 47,480 47,697 52,718 Senior center visits 35,381 34,427 36,805 41,032 41,350 41,802 40,704 36,991 40,715 38,485 Cultural activities 58 84 84 90 101
127 146 180 202 204 Museum audience served 9,400 12,090 11,921 11,835 12,570 14,119 15,397 14,163 13,968 13,535 Cemetery burials 277 245 289 232 228 273 259 226 250 237 Sources: Various
city departments (1) 2007 -Effective 1/1/2007 Valley Regional Fire Authority formed replacing the Fire Departments of Auburn, Pacific and Algona. City of Auburn, Washington SCHEDULE
20 OPERATING INDICATORS BY DEPARTMENT Last Ten Fiscal Years
City of Auburn: 2015 CAFR Statistical Section 17 2 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 General City Total area (square miles) 23.4 23.4 30.0 30.1 30.1 30.2 30.2 30.2 30.2
30.2 Publ ic Works Miles of streets 180 186 272 276 283 285 249 245 244 254 Number of streetlights 3,575 3,602 5,074 5,392 5,523 5,581 6,101 6,110 6,211 6,362 Number of traffic signals
72 72 83 85 86 89 93 94 94 -Ut i l it ies Number of services 12,633 12,954 13,050 13,076 13,372 13,334 13,863 14,106 14,573 14,787 Miles of water lines 279 287 283 293 297 304 314 315
316 320 Miles of sanitary sewer lines 177 182 205 207 213 213 219 220 220 223 Miles of storm lines 195 197 197 204 226 247 252 263 282 294 Number of fire hydrants 2,300 2,369 2,969 2,998
3,044 3,277 3,308 3,329 3,559 3,580 Publ ic Safety Number of fire stations (1) 3 ---------Number of police stations 2 2 2 2 2 2 2 2 2 2 Parks and Recreat ion Total park acreage (2) 596
596 598 602 602 602 630 635 972 977 Number of softball/baseball fields 19 19 19 18 18 18 17 17 18 18 Number of soccer/football fields 3 3 3 3 3 3 3 4 4 4 Number of playgrounds 30 30
32 33 35 35 35 36 28 31 Sources: Various city departments (1) Effective 1/1/2007 Valley Regional Fire Authority formed replacing the Fire Departments of Auburn, Pacific and Algona. (2)
The increase in total park acreage since 2013 is due to property inventory update in anticipation of the Parks Recreastion & Open Space Plan update and additional park categories are
now being reported. City of Auburn, Washington SCHEDULE 21 CAPITAL ASSET INDICATORS BY DEPARTMENT Last Ten Fiscal Years 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Water Customers
by Class Single Family Residential 10,199 10,482 10,493 10,535 10,564 10,704 11,224 11,476 11,822 11,973 Multifamily 915 957 961 985 991 991 989 986 1,000 1,003 Commercial 1,069 1,086
1,098 1,083 1,100 1,095 1,098 1,094 1,146 1,190 Mfr./Industrial 39 39 39 38 38 38 37 37 38 38 Schools 38 39 39 37 37 37 36 37 37 37 City Accounts 27 28 30 27 29 28 26 28 30 30 Irrigation
339 316 383 363 401 434 446 441 493 509 Total Retail Water Customers 12,626 12,947 13,043 13,068 13,160 13,327 13,856 14,099 14,566 14,780 Wholesale Water Customers 7 7 7 8 8 7 7 7 7
7 Sewer Customers by Class Single Family Residential (1) N/A N/A 10,698 10,711 10,918 11,183 11,522 11,982 12,631 12,890 Non-single Family Residential (1) N/A N/A 2,604 2,605 2,612 2,616
2,653 2,659 2,713 2,728 Total Sewer Customers N/A N/A 13,302 13,316 13,530 13,799 14,175 14,641 15,344 15,618 Storm Customers by Class Single Family Residential (2) 9,694 9,817 14,374
14,441 14,495 14,846 15,168 15,618 16,013 16,222 Non-single Family Residential (2) 1,562 1,595 1,623 1,650 1,769 1,653 1,661 1,640 1,670 1,679 Total Storm Customers 11,256 11,412 15,997
16,091 16,264 16,499 16,829 17,258 17,683 17,901 Sources: City of Auburn -Utility Billing (1) The City's billing system was converted in 2005, data for Sewer Customers by Class prior
to 2005 is not available (2) The City's billing system was converted in 2005, data for Storm Customers by Class prior to 2006 is not available City of Auburn, Washington SCHEDULE 22
NUMBER OF UTILITY CUSTOMERS BY CUSTOMER CLASS Last Ten Fiscal Years
City of Auburn: 2015 CAFR Statistical Section 17 3 Prepared by: Shelley Coleman Finance Director Paula Barry Assistant Finance Director Janice Davies Accounting Manager Brenda Goodson-Moore
Utilities Customer Care Manager Teri Ashton Accountant Ronda Stella Payroll & Accounts Payable Supervisor Consuelo Rogel Financial Analyst Aimee Campbell Financial Analyst Tamara Baker
Financial Analyst Evelyn McOsker Finance Secretary
City of Auburn: 2015 CAFR Statistical Section 17 4
2015
Comprehensive
Annual Financial
Report
2015
Comprehensive
Annual Financial
Report
For the Year Ended December 31, 2015
CITY OF AUBURN
WASHINGTON
COMPREHENSIVE ANNUAL
FINANCIAL REPORT
Fiscal Year January 1, 2015 through December 31, 2015
Prepared by
Finance Department
Shelley Coleman, Finance Director
City of Auburn: 2015 CAFR Table of Contents
i
COMPREHENSIVE ANNUAL FINANCIAL REPORT
For the Year Ended December 31, 2015
TABLE OF CONTENTS
I. INTRODUCTORY SECTION Page
Title Page
Table of Contents ................................................................................................................................... i
City Officials ........................................................................................................................................... 1
Organizational Chart ............................................................................................................................. 2
Letter of Transmittal .............................................................................................................................. 3
Certificate of Achievement ..................................................................................................................... 9
II. FINANCIAL SECTION
Auditor’s Report .................................................................................................................................... 11
Management’s Discussion and Analysis ................................................................................................... 15
Basic Financial Statements
Government-wide Financial Statements:
Statement of Net Position ............................................................................................................ 35
Statement of Activities ................................................................................................................. 36
Fund Financial Statements:
Governmental Funds
Balance Sheet ........................................................................................................................... 40
Reconciliation of Balance Sheet of Government Funds to the Statement of Net Position ............. 41
Statement of Revenues, Expenses and Changes in Fund Balances ............................................... 42
Reconciliation of the Statement of Revenues, Expenditures, and Changes in
Fund Balances of Government Funds to the Statement of Activities ........................................ 43
Statement of Revenues, Expenses and Changes in Fund Balances – Budget and Actual:
General Fund ........................................................................................................................ 44
Arterial Street Fund ............................................................................................................... 45
Proprietary Funds:
Statement of Net Position ......................................................................................................... 48
Statement of Revenues, Expenses, and Changes in Fund Net Position ........................................ 49
Statement of Cash Flows .......................................................................................................... 50
Fiduciary Funds:
Statement of Fiduciary Net Position .......................................................................................... 54
Statement of Changes in Fiduciary Net Position ........................................................................ 55
Notes to the Financial Statements ......................................................................................................... 57
Required Supplemental Information ...................................................................................................... 101
Combining and Individual Fund Fin ancial Statements and Schedules
Non-Major Government Funds:
Combining Balance Sheet ......................................................................................................... 108
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances ....................... 109
Non-Major Special Revenue Funds:
Combining Balance Sheet ......................................................................................................... 112
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances ....................... 114
Statement of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual:
Local Street Special Revenue Fund ......................................................................................... 116
Hotel/Motel Tax Special Revenue Fund ................................................................................. 117
Arterial Street Preservation Special Revenue Fund .................................................................. 118
City of Auburn: 2015 CAFR Table of Contents
ii
Statement of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual: Page
(continued)
Drug Forfeiture Special Revenue Fund ....................................................................................119
Housing & Community Development Special Revenue Fund ................................................. 120
Recreation Trails Special Revenue Fund ..................................................................................121
Business Improvement Area Special Revenue Fund ................................................................ 122
Cumulative Reserve Special Revenue Fund ............................................................................ 123
Mitigation Special Revenue Fund .......................................................................................... 124
Non-Major Debt Service Funds:
Combining Balance Sheet ......................................................................................................... 126
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances ...................... 127
Capital Project Funds:
Combining Balance Sheet ......................................................................................................... 130
Combining Statement of Revenues, Expenditures, and Changes in Fund Balance ........................131
Permanent Fund:
Balance Sheet........................................................................................................................... 134
Statement of Revenues, Expenditures and Changes in Fund Balance .......................................... 135
Non-Major Enterprise Funds:
Combining Statement of Net Position ...................................................................................... 138
Combining Statement of Revenues, Expenses, and Changes in Net Position ............................... 139
Combining Statement of Cash Flows ........................................................................................ 140
Internal Service Funds:
Combining Statement of Net Position ...................................................................................... 144
Combining Statement of Revenues, Expenses, and Changes in Net Position ............................... 145
Combining Statement of Cash Flows ........................................................................................ 146
Agency Fund:
Statement of Changes in Assets and Liabilities ........................................................................... 150
III. STATISTICAL SECTION
Schedule
Net Position by Components .................................................................................................. 1 ............ 152
Changes in Net Positions ....................................................................................................... 2 ............ 153
Fund Balances, Government Funds ........................................................................................ 3 ............ 154
Changes in Fund Balances, Government Funds ....................................................................... 4 ............ 155
Tax Revenues by Source, Government Funds ......................................................................... 5 ............ 156
Assessed Value by Type ......................................................................................................... 6 ............ 157
Property Tax Data ................................................................................................................. 7 ............ 158
Property Tax Levies and Collections ...................................................................................... 8 ............ 160
Principal Taxpayers – Property Taxes ..................................................................................... 9 .............161
Retail Tax Collections by Sector ............................................................................................ 10 ............ 162
Ratios of Outstanding Debt by Type ......................................................................................11 ............ 163
Computation of Legal Debt Margin ...................................................................................... 12 ............ 164
Legal Debt Margin Ratios ..................................................................................................... 13 ............ 164
Computation of Net Direct and Estimated Overlapping Debt ................................................ 14 ............ 165
Ratios of Net General Bonded Debt to Assessed Value .......................................................... 15 ............ 166
Pledged Revenue Bond Coverages ........................................................................................ 16 ............ 167
Population, Income and Housing Trends .............................................................................. 17 ............ 168
Major Employers.................................................................................................................. 18 ............ 169
Staffing Levels by Department .............................................................................................. 19 ............ 170
Operating Indicators by Department ................................................................................... 20 .............171
Capital Asset Indicators by Department ................................................................................. 21 ............ 172
Utility Customers by Customer Class .................................................................................... 22 ............ 172
1
CITY COUNCIL
CITY OFFICIALS
MAYOR
Nancy Backus
Claude DaCorsi John Holman Bob Baggett
Bill Peloza Yolanda Trout-Manuel Rich Wagner Largo Wales
DEPARTMENT DIRECTORS
Finance Director Shelley Coleman
City Attorney Dan Heid
Human Resources / Risk & Property Mgmt. Director Rob Roscoe
Innovation & Technology Director Paul Haugan
Parks, Arts and Recreation Director Daryl Faber
Community Development & Public Works Director Kevin Snyder
Police Chief Bob Lee
Administration Director Dana Hinman
2
Citizens
Mayor
Nancy Backus
City Council
Director of Human
Resources & Risk/Property
Management
Rob Roscoe
City Attorney
Dan Heid
Police Chief
Bob Lee
Director of Innovation
and Technology Paul
Haugan
Director of Ad ministration
Dana Hinman
Community Development
& Public Works
Kevin Snyder
Parks/Art and Recreation
Director
Daryl Faber
Finance Director
Shelley Coleman
3
June 23, 2016
Honorable Nancy Backus, Mayor
Members of the Auburn City Council
Citizens of the City of Auburn
25 W Main Street
Auburn, WA 98001
We are pleased to present the City’s Comprehensive Annual Financial Report for the year ended
December 31, 2015. We publish this financial statement in conformity with generally accepted
accounting principles (GAAP). It has been audited in accordance with generally accepted auditing
standards by the Washington State Auditor’s Office.
Therefore, we issue and transmit to you the City of Auburn’s Comprehensive Annual Financial Report
(CAFR) for the fiscal year ended December 31, 2015. This transmittal letter provides an overview of the
report and the financial condition of the City. It also provides insight into the history of the City and
the economic conditions affecting it, and describes the systems and controls employed by the Finance
department.
The Comprehensive Annual Financial Report has several significant uses. First, it provides a general
overview of the City’s finances to the general public and taxpayers. Second, it is referenced by bond
buyers and rating agencies to evaluate the City’s fiscal stability and creditworthiness. Finally, the CAFR
is a series of financial statements that have been audited by the State Auditor’s Office and provides
assurances that assets are safeguarded and funds are expen ded as they were legally appropriated in the
biennial budget.
I. INTRODUCTION
A. Management Representation
The Auburn Finance Department prepared the report and accepts complete responsibility for the
accuracy, completeness, and fairness of presentation of the information included. The data is believed
to be accurate in all material respects, and it is believe d that all significant information necessary for an
understanding of the affairs and financial condition of the City has been disclosed. The report has been
prepared in conformance with generally accepted accounting principles and in conformance with
financial reporting standards issued by the Governmental Accounting Standards Board (GASB).
City management has developed and evaluated a comprehensive internal control structure that is
designed to protect the City’s assets from loss, theft, or misuse and to compile sufficient reliable
information for the preparation of the City’s financial statements in conformity with generally accepted
accounting principles. Because the cost of internal controls should not outweigh the benefits, the City’s
internal control structure is designed to provide reasonable, rather than absolute, assurance that the
financial statements will be free from material misstatement. As management, we attest that, to the
best of our knowledge and belief, this financial report is complete and reliable in all material aspects.
City of Auburn: 2015 CAFR Letter of Transmittal
4
As a recipient of federal, state and county financial assistance the City is required to undergo an annual
single audit in conformity with U.S. Office of Management and Budget Circular A-133, Audits of State
and Local Governments. The audit is conducted by the State Auditor’s Office in conjunction with the
City’s annual independent audit. The results of the City’s annual single audit for the fiscal year ended
December 31, 2015 provided no instances of material weaknes s in the internal control structure or
significant violations of applicable laws.
GAAP requires that management provide a narrative introduction, overview and analysis to accompany
the basic financial statements in the form of Management’s Discussion and Analysis (MD&A). This letter
of transmittal is designed to complement the MD&A and should be read in conjunction with it.
Auburn’s MD&A can be found immediately following the independent auditor’s report.
B. Organization of the Report
The report is divided into three sections: the Introductory Section, the Financial Section, and the
Statistical Section. The Introductory Section contains the table of contents, a list of the City’s principal
officials, an organizational chart, this lette r of transmittal, and the Certificate of Achievement for
Excellence in Financial Reporting from the Government Finance Officers’ Association of the United
States and Canada for the 2014 CAFR. The Financial Section contains the Washington State Auditor’s
Report, completed by the Washington State Auditor, Management’s Discussion and Analysis,
Government-Wide Financial Statements, the Fund Financial Statements, Notes to the Financial
Statements and Other Required Combining and Supplemental Information. The Statistical Section,
which is unaudited, contains a range of statistical tables and charts that present various financial,
economic, social, and demographic data about the City. This information depicts various trends that
have affected the fiscal condition of the City over the last ten years. The data presented in this section
complies with the requirements of GASB Statement No. 44, Economic Condition Reporting: The
Statistical Section.
C. Reporting Entity
The City of Auburn was incorporated in 1891 an d currently operates as a non-charter Code City under
the laws of the State of Washington. Code City status in Washington provides “home rule” authority to
cities. Auburn has a Mayor/Council form of government; the Mayor is elected and is the full-time Chief
Administrator. The seven-member City Council is elected at large, rather than by district. Members of
the City Council are responsible for establishing the general direction and policies for the City and for
providing the resources necessary to carry out those policies. As the City’s chief administrator, the
Mayor is responsible for carrying out the policy and direction set by the City Council. This includes the
enforcement of laws and ordinances, the execution of contracts and agreements, and maint enance of
peace and order in the city. The City is located primarily in southern King County (county seat, Seattle)
and a small northeastern portion of Pierce County. These are the two most populous counties in the
State of Washington, comprising over 40% of the state-wide population. The City is strategically
located in relation to the labor and consumer markets of the two largest cities in the area: Seattle in
King County and Tacoma in Pierce County. Auburn currently serves approximately 75,545 people
within its incorporated limits.
The City provides a wide range of services, both beneficial and necessary, to its residents as well as to
the adjacent area. These services include police protection; parks and recreational facilities that include
a senior center, gymnasium, golf course and museum; land use management and development
regulation; infrastructure construction and maintenance; water, sanitary sewage collection, storm
City of Auburn: 2015 CAFR Letter of Transmittal
5
drainage, and solid waste services; a general aviation airport; and a municipa l cemetery. The City is a
member/owner of Valley Communications providing emergency 911 services and South Correctional
Entity providing jail facilities. Both these organizations provide services to other owner/member
governments and other non owner/member governments as well through interlocal agreements.
II. ECONOMIC CONDITION
A. Summary of Local Economy
Auburn began as a small rural community founded on agriculture and the railroad, which maintained a
significant switching and repair facility. The City has grown significantly since World War II, both as a
residential community and as a commercial and industrial location. Auburn has become a significant
area for automobile sales and has also developed a s ubstantial manufacturing and distribution base with
the largest employer being The Boeing Co., which employs approximately 6,000 people at its Auburn
facility. Boeing is a worldwide supplier of aircraft and related products .
Auburn has enjoyed steady residential and industrial growth over the years as development has moved
outward from the major cities. Auburn is currently home to about 4,000 businesses and is the center of
the largest industrial complex in the Pacific Northwest. The City has a growing array of manufacturing
facilities, as well as distribution, wholesale, and retail operations. Auburn’s transit-orients district is
home to the MultiCare Auburn Medical Center, with a Trauma Level III emergency facility. This
location serves the local geographic area, employs approximately 1,580 people, and has recently
announced plans to invest over 120 million dollars in expansion and upgrades .
The City’s recent efforts to promote economic development and champion its designation as an
Innovation Partnership Zone helps to solidify Auburn’s economic standing in the region and spur new
business and development activity. A number of commercial and service industry projects, currently in
progress or in the planning stages, contribute to an economic picture of future growth. These projects
include the North Creek Business Park, which will become home to over 200,000 square feet of
business space; the Green River College Aviation Campus, a downtown facility that will house the
college’s aviation classes; Merrill Gardens, the second mixed use urba n project in the City’s downtown
area; and the Outlet Collection, a newly remodeled commercial retail center.
Other recent significant developments in the City include the issuance of 210 building permits for single
family homes as well as about $66.2 million in commercial construction, which includes projects such as
the Auburn High School, Green River College facilities, seven new commercial/industrial projects, and
the expansion of Plygem, TTF Aerospace, Shillings, and Orion Industries . These projects have positive
impacts on available revenue and, as they take hold, will serve to strengthen the City’s economic future.
Since 2005 the City’s total assessed property valuation has risen from $5.1 billion in 2005 to $8.4
billion in 2015. The recent economic downturn, coupled with the impact of the Streamlined Sales Tax
(SST) legislation enacted by the State of Washington that went into effect July 1, 2008, has dropped
general sales tax revenues from their high in 2007 of $17.5 million to $16.7 million in 2015. The SST
impact is estimated to have eliminated approximately $200,000 per month of sales tax revenue to the
City. To lessen the financial impact on cities severely impacted by this legislation, the State of
Washington implemented a mitigation plan under which the City of Auburn received approximately
$1.95 million in mitigation payments in 2015.
City of Auburn: 2015 CAFR Letter of Transmittal
6
While the City, similar to other municipalities in the region and nationally, has suffered during the
recent economic recession, the local economy is improving. Sales Tax revenue, net of criminal justice
and annexation sales tax credits, constitutes approximately twenty five percent of the General Fund
budget, increased by $1.07 million (+6.8%) from 2014. Nonetheless, while the local economy is
recovering, the City remains vigilant in its management of expenses to ensure it lives within its means.
Despite economic cycles, the City has continually focused on enhancing the quality of life in the
community and focusing on maintaining and redeveloping its aging infrastructure . For example, the
City’s Arterial Street program is partially funded by dedicating 1.0% of utility taxes toward arterial
roadway improvements. In addition, the City utilizes sales taxes collected from new construction for the
local street program, commonly referred to as the Save Our Streets (SOS) program.
The City’s budgeting process is based on financial policies directed at conserving fiscal resources while
supporting programmatic strategies. Budget recommendations reflect a long -range analysis of fiscal
trends. These policies and practices have not only averted serious funding problems i n the past, but
have enabled the General Fund to remain on a firm financial footing during the most recent recession.
The City maintains a stable financial condition by managing expenditure budgets to available revenue
streams. All funds contain adequate balances, and the City’s debt is manageable. The General fund
contains a satisfactory balance, a significant Insurance fund has been set aside for contingencies, and the
Equipment Rental fund is adequate for vehicle replacement. The Proprietary an d Fiduciary funds are in
satisfactory condition. The City completed a review of the City’s water, sewer and stormwater utility
rates in 2012 and established rates to fund operating and capital needs through 2017 which included the
issuance of new revenue bonds in 2013 to support significant new utility construction projects. An
interim review of utility rates, in conjunction with the comprehensive planning process, is underway.
B. Future Economic Outlook
Auburn is in a continuous process of both short-term and long-term financial planning. Short-term
financial planning is inherent in the development of the City’s biennial budget. Concurrent with the
biennial budget is the review of the City’s long-term capital needs. Funding sources are assessed with
the development of the six-year Capital Facilities Plan. The capital facility plan is a component of the
Comprehensive Master Plan, which outlines how the City should look and function in twenty years and
creates a vision that can be realistically implemented. An integral part of this vision is determining how
to allocate the City’s financial resources to achieve the desired goals.
The City has several long-term municipal planning and capital projects underway. These include
reconstruction of aged utility infrastructure; street improvements including rehabilitation of local
neighborhood streets. These projects will improve mobility, will contribute to the completion of a
North/South arterial corridor, and provide for greater recreational opportunities for the community.
These municipal projects, coupled with the new private sector developments described earlier, will help
ensure local economic growth continue, albeit not at the rate experienced in the late 1990’s. The
challenge is to control costs that grow at a faster r ate than revenue. Areas of concern are health care
costs, pension costs, other post-employment benefits (OPEB), and public safety costs related to
incarceration and labor contracts. Continuing to maintain service level in these sectors will draw
valuable resources from other areas such as infrastructure replacement and capital programs. As Auburn
moves forward, economic conditions will be continually monitored and adjustments to city spending
and services made to maintain the City’s financial health. Lo ng-term plans will be focused on ensuring
the City continues to be an economically strong and viable city.
City of Auburn: 2015 CAFR Letter of Transmittal
7
III. FINANCIAL INFORMATION
A. Cash Management
The City invests in U.S. Treasury and Agency Issues, Prime Bankers Acceptances, Time Deposits, and
Repurchase Agreements. Investment policies and procedures, established by the Mayor and adopted by
the City Council, require the City to establish a trustee to take delivery of all investment transactions at
time of payment. The City has contracted with the Bank of New York to provide delivery versus
payment trustee services on all government agency investments. The State of Washington maintains an
investment pool to provide economies of scale in investing to smaller- and medium-sized cities in the
State. The City uses this service for all funds not invested in longer -term securities. The pool operates
under the same legal restrictions that apply to all municipalities in the State and, consequently, uses the
same instruments as listed above. The State also takes delivery of all investment transactions.
The City has adopted a comprehensive investment policy statement to guide City investment practices.
These policies are closely patterned after the recommendations in Investing Public Funds published by
the Government Finance Officers Association (GFOA). Investments are restricted to less than three
years in order to maintain liquidity on all investments i n all funds, yet enable the City to take advantage
of the yield curve. Fiduciary funds, which involve long -term reserves and require minimal liquidity, are
invested for longer time periods. The City undertakes repurchase agreements only with financial
institutions that offer the City full protection in the event of default, by providing the delivery of the
underlying security to the City.
B. Risk Management
The City participates in the Washington Cities’ Insurance Authority (an insurance pool of 1 79 members)
and the City actively pursues risk reduction in the operation of its programs.
The City purchases, with employee participation, most of its health insurance for its employees through
commercial policies administered by the Association of Washington Cities. Employees represented by
the Teamsters Union have insurance through the Teamsters organization. Beginning in 2014, the City
created its own worker’s compensation program and pool. Prior, the City participated in the
Washington State Workers’ Compensation program.
In order to keep its long-term options open and to provide for any uninsured losses that might occur,
the City has elected to build an insurance reserve (the Insurance fund). The Insurance fund supp lements
various insurance coverage’s maintained by the City. This fund is also used to self-insure some limited
exposures, the most significant of which is accidental loss to City-owned vehicles.
The Washington Cities’ Insurance Authority not only provid es a sharing of risk by pooling of losses, it
also provides an extensive array of professional services in risk management. The pool monitors the
City’s management practices and damage claims. The City follows the guidelines provided by the pool
in an effort to minimize risk exposure in the day-to-day operations of the City’s programs. The City
also maintains an extensive employee safety program managed by the Human Resources department.
City of Auburn: 2015 CAFR Letter of Transmittal
8
IV. OTHER RELEVANT INFORMATION
A. Independent Audit
State law requires an annual audit of all City books of accounts and financial records by the Office of
the State Auditor, which is headed by an independently elected State official, the State Auditor. The
Auditor has broad legal authority to inquire into all financial and legal compliance matters and such
audits are considered equal to audits by certified public accounting firms. The 2015 financial audit of
the City is complete and was conducted in conformance with Generally Accepted Auditing Standards.
The financial statements of all City funds have been included in this audit. The City has been given an
unqualified opinion for 2015. Please see the Auditor’s Report. The State Auditor’s Office also audits
the City’s administration of its federal grants under the single audit concept.
B. Awards
The Government Finance Officers Association of the United States and Canada (GFOA) awarded a
Certificate of Achievement for Excellence in Financial Reporting to the City of Auburn for its
Comprehensive Annual Financial Report for the fi scal year ended December 31, 2014. This was the
twenty-seventh consecutive year that the City has achieved this prestigious award. In order t o be
awarded a Certificate of Achievement, a government must publish an easily readable and efficiently
organized comprehensive annual financial report. This report must satisfy both generally accepted
accounting principles and applicable legal requiremen ts.
A Certificate of Achievement is valid for a period of one year only. We believe that our current
Comprehensive Annual Financial Report continues to meet the Certificate of Achievement Program’s
requirements and we are submitting it to the GFOA to determine its eligibility for another certificate.
In 2014, the City has also received the Government Finance Officers Association Distinguished Budget
Presentation award for its 2015-2016 biennial budget. The City was one of just twenty-one cities in the
state to receive both the Certificate of Achievement for Excellence in Financial Reporting and the
Distinguished Budget Presentation award for 2014. The City will be submitting to GFOA its 2017-2018
biennial budget to determine its eligibility for this award.
C. Acknowledgments
Preparation of this report could not have been accomplished without the professional, efficient, and
dedicated staff of the Finance department and various other City employees who assisted in its
production. Further appreciation is extended to the Mayor and City Council for their encouragement,
interest, and support in conducting the financial affairs of the City in a sound and progres sive manner.
The assistance of the auditors from the Washington State Auditor’s Office is also greatly appreciated.
Respectfully submitted,
Shelley R. Coleman
Finance Director
9
Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Auburn
Washington
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
December 31, 2014
Executive Director/CEO
10
11
Washington State Auditor’s Office
IND E P E NDE N T A U DITOR ’S R E P O R T O N F I N A N C I A L S T A TEM E N T S
J une 23, 2016
Mayor and City Council
City of Auburn
Auburn, Washington
REP O R T O N T H E F I NAN C I A L S T A T E M E NTS
We have audited the accompanying financial statements of the governmental activities, the business -type
activities, each maj or fund and the aggregate remaining fund information of the City of Auburn, King
County, Washington, as of and for the year ended December 31, 2015, and the related notes to the financial
statements, which collectively comprise the City’s basic financial statements as listed in the table of
contents.
M a n a g e m e n t ’ s R e s p o n s i b i l i t y f o r t h e F i n a n c i a l S t a t e m e n t s
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with accounting principles generally accepted in the United States of America; this includes the
design, implementation, and maintenance of internal control relevant to the preparation and fair presentation
of financial statements that are free from material misstatement, whether due to fraud or error.
A u d i t o r ’ s R e s p o n s i b i l i t y
Our responsibility is to express opinions on these financial statements b ased on our audit. We conducted
our audit in accordance with auditing standards generally accepted in the United States of America and the
standards applicable to financial audits contained in Government Auditing Standards, issued by the
Comptroller General of the United States. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the
financial statements. The procedures selected depend on the auditor’s judgment, including the assessment
of the risks of material misstatement of the financial statements, whether due to fraud or error. In maki ng
those risk assessments, the auditor considers internal control relevant to the City’s preparation and fair
presentation of the financial statements in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal
control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness
of accounting policies used and the reasonableness of significant accounting estimates made by
management, as well as evaluating the overall presentation of the financial statements.
12
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
audit opinions.
O p i n i o n
In our opinion, the financial statements referred to above present fairly, in all material respects, the
respective financial position of the governmental activities, the business-type activities, each major fund
and the aggregate remaining fund information of the City of Auburn, King County, Washington, as of
December 31, 2015, and the respective changes in financial position and, where applicable, cash flows
thereof, and the respective budgetary comparison for the General and Arterial Street funds for the year then
ended in accordance with accounting principles generally accepted in the United States of America.
M a t t e r s o f E m p h a s i s
As described in Note 1, during the year ended December 31, 2015, the City has implemented the
Governmental Accounting Standards Board Statement No. 68, Accounting and Financial Reporting for
Pensions – an amendment of GASB Statement No. 27. Our opinion is not modified with respect to this
matter.
O t h e r M a t t e r s
R e q u i r e d S u p p l e m e n t a r y I n f o r m a t i o n
Accounting principles generally accepted in the United States of America require that the management’s
discussion and analysis on pages 15 through 31, pension plan information on pages 101 through 105 and
information on postemployment benefits other than pensions on page 106 be presented to supplement the
basic financial statements. Such information, although not a part of the basic fi nancial statements, is
required by the Governmental Accounting Standards Board who considers it to be an essential part of
financial reporting for placing the basic financial statements in an appropriate operational, economic or
historical context. We have applied certain limited procedures to the required supplementary information
in accordance with auditing standards generally accepted in the United States of America, which consisted
of inquiries of management about the methods of preparing the information and comparing the information
for consistency with management’s responses to our inquiries, the basic financial statements, and other
knowledge we obtained during our audit of the basic financial statements. We do not express an opinion
or provide any assurance on the information because the limited procedures do not provide us with sufficient
evidence to express an opinion or provide any assurance.
S u p p l e m e n t a r y a n d O t h e r I n f o r m a t i o n
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the City’s basic financial statements. The accompanying information listed as combining
financial statements and supplementary information on pages 107 through 150 is presented for purposes of
additional analysis and is not a required part of the basic financial statements. Such information is the
responsibility of management and was derived from and relates directly to the underlying accounting and
other records used to prepare the financial statements. This information has been subjected to auditing
procedures applied in the audit of the basic financial statements and certain additional procedures, including
comparing and reconciling such information directly to the underlying accounting and other records used
to prepare the financial statements or to the financial statements themselves, and other additional procedures
13
in accordance with auditing standards generally accepted in the United States of America. In our opinion,
the information is fairly stated, in all material respects, in relation to the basic financial statements taken as
a whole.
The information identified in the table of contents as the Introductory and Statistical Sections is presented
for purposes of additional analysis and is not a required part of the basic financial statements of the City.
Such information has not been subjected to the auditing procedures applied in the audit of the basic financial
statements and, accordingly, we do not express an opinion or provide any assurance on it.
O T H E R REP O RTI N G REQ U I R E D B Y G O V ERN M E N T A U D I T I N G S T A N D A RDS
In accordance with Government Auditing Standards, we will also issue our report dated June 23, 2016, on
our consideration of the City’s internal control over financial reporting and on our tests of its compliance
with certain provisions of laws, regulations, contracts and grant agreements and other matters. The purpose
of that report is to describe the scope of our testing of internal control over financial reporting and
compliance and the results of that testing, and not to provide an opinion on internal control over financial
reporting or on compliance. That report is an integral part of an audit performed in accordance with
Government Auditing Standards in considering the City’s internal control over financial reporting and
compliance.
Sincerely,
TROY KELLEY
STATE AUDITOR
OLYMPIA, WA
14
City of Auburn: 2015 CAFR Management’s Discussion and Analysis
15
MANAGEMENT’S DISCUSSION AND ANALYSIS
The City of Auburn’s (the “City”) discussion and analysis is designed to:
Assist the reader in focusing on significant financial issues
Provide an overview of the City’s financial activity
Identify changes in the City’s financial position (its ability to meet future years’ challenges)
Identify any material deviations from the approved budget
Identify individual fund issues or concerns
Management’s Discussion and Analysis is designed to focus on the current year’s activities, resulting changes and
currently known facts. Therefore, it should be read in conjunction with the Transmittal Letter and the City’s financial
statements.
Financial Highlights
Total government-wide net position, the difference between assets plus deferred outflows and liabilities plus
deferred inflows, equal $646.8 million, an increase of $9.5 million or 1.5%. Of this, a total of $548.9 million,
or 84.9% of total net position, is net investment in capital assets, and includes assets such as utility systems,
streets, buildings, land, vehicles and equipment. An additional $5.9 million of net position is restricted for
purposes of endowment and debt service. Of the remaining $92.0 million of net position, $18.3 million is
legally restricted, restricted by City policy for specific purposes, or is restricted for use by the City’s utilities and
$73.7 million is unrestricted.
The net increase in government-wide net position during 2015 was $9.5 million. Of this amount, $31.7
million was directly related to the increase in City-owned net investment in capital assets, restricted net
position decreased by $6.3 million, unrestricted net position increased by $3.9 million, and there was an
additional reduction of $19.8 million due to the change in accounting principle associated with the
implementation of GASB 68 (Accounting and Financial Reporting for Pensions). This adjustment is further
described in Note 1 to the financial statements.
Business-type net position increased by $4.4 million to $225.3 million during 2015 as a result of net capital
investment related to the City’s water, sewer and storm water utilities.
Governmental fund balances at year-end totaled $55.4 million. Of this amount, $20.3 million, or 37%, is
unassigned and available to fund ongoing activities. Compared to 2014, total governmental fund balances
increased by $4.3 million. This increase reflects the net effect of a general improvement in the regional
economy and continued vigilance in monitoring general spending.
Total City debt payments during the year, net of compensated absences and other post -employment benefits,
were $4.5 million. Total long-term liabilities, including bonds and loans, totaled $127.3 million at December
31, 2015. The ending long-term liabilities is a increase of $16.1 million from 2014 and is primarily the result of
the pension liability. See note 9 for further information on long-term liability activity during the year.
City of Auburn: 2015 CAFR Management’s Discussion and Analysis
16
Other City Highlights:
Parks and Community Development
Construction started on a combined Community & Events and Youth/Teen Center and will be completed by
summer 2016. The center will provide approximately 21,000 square feet of building space to be used for
educational, cultural, and social activities.
The Park, Recreation, and Open Space Plan update was completed as part of the City’s overarching
Comprehensive Plan update. The plan includes a comprehensive inventory of the City’s park system, a
demands and needs analysis, recommended park improvements, and a summary of the programs provided by
the Parks Department.
The City prepared the Auburn Community Campus Master Plan, covering Les Gove Park, the Senior Center,
White River Valley Museum, King County Library, Gym and Teen Center, and the new Community Center.
Main elements of the plan include a vision for improving vehicular and pedestrian circulation to and within
the campus, and future park improvements.
Auburn hosted its first Geocaching Adventure with almost 175 participants and an additional 60 people
completing the Geocaching Adventure challenge post event.
The City of Auburn celebrated the 50th Anniversary of the Veterans Day Parade. The event had over 20,000
spectators and 6,000 parade participants.
The City launched the Auburn Community Teen Players, bridging the programming gap between the Auburn
Community Players and the AveKids youth productions. Twenty -six teens participate in the four show run of
Legally Blonde the Musical, with 673 people attending the performance.
Launched the Downtown Façade Improvement Program.
Opened and closed more than 640 code enforcement cases.
Processed more than 3,000 permits and 880 licenses, completed 6,500 building inspections, conducted 5,700
permit reviews, issued 4,000 decisions, and participated in more than 50,000 interactions with customers.
Assembled a multidisciplinary team that learned the principles of LEAN and how to apply them to
development review processes.
Engineering Services
Completed a major update to the Water, Sanitary Sewer, Storm Drainage and Transportation comprehensive
plans, including planning for the system needs over the next 20 -year period.
Completed an update of system development charges for Water, Sanitary Sewer and Storm Drainage in
support of capital projects for these systems.
Completed access improvements, emergency power, and corrosion protection at sewage pump stations to
improve worker safety, emergency preparedness, and enhance the facilities’ longevity.
Initiated installation of Automated Metering Infrastructure system for water meter data collection , which is a
3-year project.
Completed construction of the Storm Drainage infrastructure and decant facility improvements at the
Maintenance & Operations facility to improve operations and protect the environment.
Completed pavement patching and overlay work to preserve arterial/collector and local roadways throughout
the City.
Completed annual traffic signal improvements at various locations throughout the City.
Completed the AWS and M Street SE Inter section Improvements.
City of Auburn: 2015 CAFR Management’s Discussion and Analysis
17
Completed the BNSF Utility Crossings Project which addressed utility crossings of the BNSF right -of-way that
will be affected by the third rail line that BNSF/Sound Transit plan s to build in 2016. The project also replaced
a storm drain pipe adjacent to the railroad tracks at 37th Street.
Completed the 30th Street NE Storm Improvements (Phase 1A ) that replaced the 30 -inch storm drainage line
along 30th Street NE from the north end of the Airport to the Brannan Park Storm Pump Station to address
localized flooding issues.
Completed the Valley AC Watermain Replacement project which completed replacement of asbestos cement
water lines along AWN, 49th and B St NW and at the M&O/Parks Maintenance area.
Worked in partnership with the U.S. Army Corps of Engineers on the construction of the Mill Creek Wetland
5K Green/Duwamish Ecosystem Restoration Project.
Completed construction of the Fenster Levee Setback Project at Fenster Nature Area on the Green River.
Conducted ecological restoration volunteer events at Fenster Nature Area an d Auburn Environmental Park.
Initiated a multi-year inventory of City environmental property assets, including sites owned by the City, and
City conservation easement and deed restriction interests on privately -owned environmental sites.
Provided field technical assistance throughout the year to property owners on a variety of environmental
issues and best practices for protecting environmentally sensitive areas such as streams, wetlands, and
floodplains.
Maintenance & Operations Services
Improved the inventory catalogue with bin locations and photos on all parts to streamline the inventory
process so Central Stores staff can dedicate more time to seeking out the absolute best price on inventory
purchases, as well as generating more accurate stocking levels.
The Water division successfully took 1,302 regulatory samples from the water system, ensuring safe drinking
water is provided to our customers.
The Storm division cleaned 21 ponds at a cost savings of more than 50% compared to contracting for this
service in past years.
The Vegetation division successfully removed 37 trees from a planter strip that were damaging City sidewalks
and creating a safety hazard. The area was replanted with less invasive flowering trees.
Overview of the Financial Statements
The City’s basic financial statements are presented in three parts:
1) Government-wide financial statements
2) Fund financial statements
3) Notes to the financial statements
These statements report the Cities net position, and changes in them. The net position is the difference between assets
plus deferred outflows of resources and liabilities plus deferred inflows of resources.
Other supplementary information, in addition to the basic financial statements, is also containe d in this report. This
section of the management’s discussion and analysis is intended to introduce and explain the basic financial statements.
City of Auburn: 2015 CAFR Management’s Discussion and Analysis
18
Government-wide Financial Statements
The Financial Statements are presented in conformity with the Governmental Accounting Standards Board (GASB),
which establishes GAAP for governmental entities. The City adopted the provisions of Statement No. 67 – Financial
Reporting for Pension Plans, an amendment of GASB Statement No. 25, Statement No. 69 – Government
Combinations and Disposals of Government Operations; and Statement No. 70 – Accounting and Financial Reporting
for Nonexchange Financial Guarantees. There is no material impact to the City of implementing these standards.
GASB No. 68 – Accounting and Financial Reporting for Pensions was adopted for fiscal year 2015 reporting. This
Statement changes how the city accounts and reports for is cost sharing multiemployer pension plans.
The government-wide financial statements are designed to be corporate-like in that all governmental and business-type
activities are consolidated into columns which add to a total for the City. The focus of the Statement of Net Position
is designed to be similar to bottom-line results for the City and its governmental and business-type activities. This
statement combines and consolidates governmental funds’ current financial resources (short -term spendable resources)
with capital assets, deferred outflows of resources, long-term obligations and deferred inflows of resources, (which
there are none to report). Over time, increases or decreases in net position may be one indicator of improvement or
deterioration in the City’s overall financial health.
The Statement of Activities is focused on both the gross and net cost of various functions, including both governmental
and business-type activities, which are supported by the City’s general tax and other revenues. This is intended to
summarize and simplify the user’s analysis of cost of various governmental services and/or subsidy to various business -
type activities. The revenue generated by the specific functions (charges for services, grants, and contributions) is
compared to the expenses for those functions to show how much ea ch function either supports itself or relies on taxes
and other general funding sources for support. All activity on this statement is reported on the accrual basis of
accounting, requiring that revenues are reported when they are earned and expenses are reported when they are
incurred, regardless of when cash is received or disbursed.
Governmental activities of the City include general government (executive, finance, legal, human resources, and
contracted court), security (police), physical environment, economic environment, transportation, health and human
services, and culture and recreation. The City’s business -type activities include water, sanitary sewer, storm water and
solid waste utilities, as well as the operations of a n airport and cemetery. Governmental activities are primarily
supported by taxes, charges for services, and grants while business -type activities are self-supporting through user fees
and charges.
Fund Financial Statements
The Fund Financial Statements are the traditional reporting format for governments. A fund is a fiscal and accounting
entity with a self-balancing set of accounts used to account for specific activities or meet certain objectives. While the
government-wide statements present the City’s finances based on the type of activity (general government vs. business
type), the Fund Financial Statements are presented by fund type, such as the general fund, special revenue funds and
proprietary funds, with the focus on major funds.
Governmental Funds are used to account for essentially the same functions that are reported as governmental activities
in the government-wide financial statements. The government major fund is presented utilizing the “sources and uses
of liquid resources” basis. This is the manner in which the budget is typically developed. The basis of accounting is
different between the governmental fund statements and the government -wide financial statements. The
governmental fund statements focus on the near -term revenues/financial resources and expenditures while the
government-wide financial statements include both near-term and long-term revenues/financial resources and
expenses. The information in the governmental fund statements can be used to evaluate the City’s near -term financing
City of Auburn: 2015 CAFR Management’s Discussion and Analysis
19
requirements and immediate fiscal health. Comparing the governmental fund statements with the government -wide
statements can help the reader better understand the long -term impact of the City’s current-year financing decisions.
Because the basis of accounting is different between the governmental fund statements and the government -wide
financial statements, reconciliations are provided. The reconciliation between the governmental fund Balance Sheets
and the government-wide Statement of Net Position is found directly following the governmental funds’ Balance
Sheet, the reconciliation between the governmental fund Statement of Revenues, Expenditures and Changes in Fund
Balance and the government-wide Statement of Activities is found directly following the governmental funds’
Statement of Revenues, Expenses, and Changes in Fund Balances.
The City maintains twenty individual governmental funds. Of these, three are considered major (the general fund, the
arterial street fund, and the capital improvement projects fund) and are presented separately in the governmental fund
Balance Sheet and the governmental fund Statement of Revenues, Expenditures and Changes in Fund Balances. The
remaining governmental funds are combined into a single column labeled “Other Governmental Funds”. Individual
fund data for each of the other governmental funds can be found in the combining statements later in this report.
The City maintains budgetary control over its operating funds through the adoption of a biennial budget. Budgets are
adopted at the fund level according to state law. Budgetary comparison statements are presented for the genera l and
arterial street funds as part of the basic financial statements. Other budgetary comparison statements are included
following the other government funds’ combining statements in this report.
Proprietary funds are used by governments to account for their business -type activities and use the same basis of
accounting utilized in private industry. Business-type activities provide specific goods or services to a group of
customers that are paid for by fees charged to those customers. There is a direct relationship between the fees paid
and the services rendered.
The City has two types of proprietary funds: enterprise funds and internal service f unds. Enterprise funds are used to
account for goods and services provided to citizens, while internal service funds are used to account for goods and
services provided internally to various City departments.
Enterprise funds report the same functions presented as business-type activities in the government-wide statements, but
in greater detail. The City’s enterprise fund statements provide information on the City’s four utilities (water, sanitary
sewer, storm water, and solid waste) as well as the City -owned airport and cemetery.
Internal service funds are an essential accounting tool used to accumulate and allocate costs internally among the City’s
various functions. The City uses internal service funds to account for its fleet of vehicles, its mainte nance and
operation of facilities, the City-wide provision of computer hardware and software services, the cost of employees
who are affected by occupational injury or illness, and its insurance premiums. Internal service funds benefit both
governmental and business-type activities, and are allocated accordingly in the government-wide statement of
activities.
Fiduciary funds account for assets held by the City in a trustee capacity or as an agent for individuals, private
organizations, other governments o r other funds. Fiduciary funds are not included in the government -wide financial
statements because their assets are not available to support the City’s activities.
The City has two fiduciary funds: a pension fund and an agency fund, and are accounted for on the accrual basis. As
agency funds are custodial in nature, they do not include revenues and expenses.
City of Auburn: 2015 CAFR Management’s Discussion and Analysis
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Notes to the Financial Statements
The notes provide additional information that is essential to a full understanding of the data provided in the
government-wide and fund financial statements. The notes to the financial statements can be found at the end of the
Basic Financial Statements section.
Other Information
In addition to the basic financial statements and accompanying notes, this report also presents certain required
supplementary information concerning the budget vs. actual reports of the City’s general fund and major special
revenue funds. The budget vs. actual required supplementary information can be found on page 44 and 45, and the
pension benefit and other postemployment benefit required supplementary information is found in the required
supplemental information.
The combining statements referred to earlier in connection with nonmajor governmental funds, nonmajor enterprise
funds, and internal service funds are presented in the section titled “Fund Financial Statements and Schedules”.
Government-wide Financial Analysis
The statement of net position may serve as a useful indicator of the City’s financial position. The overall financial
position has improved for the City of Auburn over the prior year. Changes in Net Position from 2014 to 2015 show
an increase in total net position of $9.5 million. Following is a condensed version of the government-wide statement
of net position with a comparison to 2014:
As of 12/31/15 As of 12/31/14 As of 12/31/15 As of 12/31/14 As of 12/31/15 As of 12/31/14
Current and other assets 114,267,041$ 107,838,776$ 52,851,281$ 59,065,425$ 167,118,322$ 166,904,201$
Capital assets, net of
accumulated depreciation 395,857,434 383,675,820 225,307,714 210,726,930 621,165,148 594,402,750
Total assets 510,124,475 491,514,596 278,158,995 269,792,355 788,283,470 761,306,951
Deferred Outflows of Resources 2,058,977 22,344 795,562 41,546 2,854,539 63,890
Long-term liabilities 77,339,930 64,972,946 43,119,532 39,409,343 120,459,462 104,382,289
Other liabilities 10,090,059 10,180,595 9,520,926 9,485,952 19,610,985 19,666,547
Total liabilities 87,429,989 75,153,541 52,640,458 48,895,295 140,070,447 124,048,836
Deferred Inflows of Resources 3,260,251 970,315 4,230,566
Net position
Net investment in capital assets 361,279,833 348,080,505 187,604,782 169,098,916 548,884,615 517,179,421
Restricted for:
Capital Projects 17,134,142 14,012,967 799 9,395,125 17,134,941 23,408,092
Nonexpendable Permanent Endowment 1,585,707 1,574,148 - - 1,585,707 1,574,148
Debt Service 13,278 34,856 4,349,763 4,307,307 4,363,041 4,342,163
Tourist Promotion 201,293 166,896 - - 201,293 166,896
Drug Investigation & Enforce 443,161 539,236 - - 443,161 539,236
Comm Dev Block Grant 44,904 44,904 - - 44,904 44,904
Central Business Distr Dev 48,395 31,321 - - 48,395 31,321
Rate Stabilization - - 413,778 413,178 413,778 413,178
Unrestricted 40,742,499 51,898,566 32,974,662 37,724,080 73,717,161 89,622,646
Total net position 421,493,212$ 416,383,399 225,343,784$ 220,938,606$ 646,836,996$ 637,322,005$
Governmental Activities Business-type Activities Total
STATEMENT OF NET POSITION
Comparative Analysis of 2015 and 2014
City of Auburn: 2015 CAFR Management’s Discussion and Analysis
21
The City’s net position increased by $9.5 million, or 1.5%. The largest component of the City’s net position, $548.9
million, or 84.9%, is its net investment in capital assets. These capital assets, such as streets, parks, trails, and vehicles
and equipment related to police and public works, are used to provide services to the citizens. As a result, these assets
are not for sale, and are therefore not available to fund current and future City obligations. The City elected the GASB
34 reporting option to include all general infrastructure of the City acquired or substantially renovated since 1980.
The largest component of unrestricted net position, $40.7 million, may be used for functions such as public safety
employee salaries and supplies, park and road maintenance, and other general governmental services. The second
largest component of unrestricted net position, $33.0 million, represents the unrestricted net position of the City’s
business-type activities and may only be spent on activities related to one of the four City utilities (water, sanitary
sewer, storm water and solid waste) or to the City -owned ventures (airport and cemetery). Examples of utility
activities include maintenance of water/sewer mains, pump and lift stations, storm drain flushing, water meter reading,
and garbage collection. Activities related to the other City-owned ventures include maintenance of hangars and
runways at the airport, and grooming and landscaping at the cemetery.
Restricted governmental fund net position is $19.5 million and is restricted for purposes such as capital project
construction, debt service, drug investigation and enforcement , and endowment. Total net investment in capital assets
increased $31.7 million.
Changes in Net Position
The change in net position represents the increase or decrease in City net position resulting from its various activities.
Following is a condensed version of the City’s changes in net position. The table shows the revenues, expenses and
related changes in net position for both governmental-type and business-type activities:
2015 2014 2015 2014 2015 2014
Revenues:
Program revenues
Charges for services 11,109,069$ 11,335,041$ 63,391,139$ 60,332,817$ 74,500,208$ 71,667,858$
Operating grants and contributions 4,234,309 1,333,652 111,025 111,025 4,345,334 1,444,677
Capital grants and contributions 19,526,548 6,001,230 5,821,857 5,070,810 25,348,405 11,072,041
General revenues
Property taxes 17,271,705 15,867,838 - - 17,271,705 15,867,838
Sales taxes 21,125,730 19,744,684 - - 21,125,730 19,744,684
Interfund utility taxes 4,260,831 4,068,667 - - 4,260,831 4,068,667
Admission & utility taxes 8,838,179 9,040,015 - - 8,838,179 9,040,015
Excise taxes 4,999,517 2,888,797 - - 4,999,517 2,888,797
Other taxes 4,722,482 4,601,925 - - 4,722,482 4,601,925
Investment earnings 118,399 105,117 70,560 51,261 188,959 156,378
Miscellaneous revenue 194,600 178,482 1,877,096 2,700,233 2,071,696 2,878,714
Total revenues 96,401,369 75,165,448 71,271,677 68,266,146 167,673,046 143,431,594
Expenses:
General government 9,187,539 8,363,427 - - 9,187,539 8,363,427
Public safety 29,883,217 27,144,153 - - 29,883,217 27,144,153
Transportation 17,324,036 16,150,877 - - 17,324,036 16,150,877
Physical environment 2,924,046 2,976,461 - - 2,924,046 2,976,461
Culture and recreation 12,096,651 11,094,524 - - 12,096,651 11,094,524
Economic environment 3,044,354 2,751,869 - - 3,044,354 2,751,869
Health and human services 925,299 622,374 - - 925,299 622,374
Interest on long-term debt 1,986,853 3,615,211 - - 1,986,853 3,615,211
Water - - 13,691,529 11,992,944 13,691,529 11,992,944
Sanitary sewer - - 23,992,161 23,026,216 23,992,161 23,026,216
Storm drainage - - 8,308,559 7,668,072 8,308,559 7,668,072
Solid waste - - 12,907,832 12,760,313 12,907,832 12,760,313
Golf course - - - - - -
Other business-type activities - - 2,062,695 1,924,874 2,062,695 1,924,874
Total expenses 77,371,995 72,718,896 60,962,776 57,372,419 138,334,771 130,091,315
Increase in net position before transfers 19,029,374 2,446,552 10,308,901 10,893,727 29,338,275 13,340,279
Transfers (462,955) 5,294,793 462,955 (5,294,793) - -
Change in net position 18,566,419 7,741,345 10,771,856 5,598,934 29,338,275 13,340,279
Net Position, January 1, as Previously Reported 416,383,399 408,642,054 220,938,606 215,339,672 637,322,005 623,981,726
Change in Accounting Principle (13,456,606) - (6,366,678) - (19,823,284) -
Net Position, January 1, as Restated 402,926,793 408,642,054 214,571,928 215,339,672 617,498,721 619,979,305
Net position, December 31 421,493,212$ 416,383,399$ 225,343,784$ 220,938,606$ 646,836,996$ 637,322,005$
Governmental Activities Business-type Activities Total
CHANGES IN NET POSITION
Comparative Analysis of 2015 and 2014
City of Auburn: 2015 CAFR Management’s Discussion and Analysis
22
Governmental activities contributed $18.6 million to the total increase in City net position . Revenues to fund capital
assets are recorded as program or general revenues in the statement of activities. However, asset purchases are not
recorded as expenses in the year purchased and construction costs are not recorded as expenses in the year incurred.
Instead, the costs are recorded as long -term assets and are depreciated over their useful life.
General tax revenues increased by 8.9% to $61.2 million between 2014 and 2015, compared to an increase of 6.3%
between 2013 and 2014:
Property tax revenue increased $1.4 million or 8.8%.
Sales tax collections increased $1.4 million or 7.0%, reflecting continued improvement in the economy.
Utility and admission tax revenue decreased by $201,836 or 2.2%.
Excise tax revenue increased by $2.1 million or 73.1%. This change is due primarily to a significant increase in
real estate excise taxes (REET) resulting from an increase in the number and size of real estate transactions.
Investment earnings increased by $13,282 in governmental activities and $19,299 in business-type activities for
a government-wide increase of $32,581 or 20.8%. Government-wide miscellaneous revenue decreased by
$0.8 million to $2.1 million.
Government-wide expenses increased by approximately $4.7 million or 6.4% and were largely attributable to the net
change due to internal service fund consolidations, increased wastewater treatment charges from King County, and
general increases in operating expenses such as salaries and wages.
The following first chart summarizes the government activity revenue by source, while the second chart reflects the
specific programs’ revenues and related expenses for the various activities of the City. Gaps between specific
programs’ revenues and their related expenditures are funded through general tax revenues.
Revenues by Source – Government Activities
Charges for Services
12%
Capital Grants &
Contributions
20%
Operating Grants &
Contributions
4%
Property Taxes
18%
Sales Taxes
22%
Interfund Utility Taxes
5%
Utility & Admission Taxes
9%
Other Taxes
10%
Other Revenue
0%
City of Auburn: 2015 CAFR Management’s Discussion and Analysis
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Program Expenses and Revenues – Governmental Activities
Business-type net position totaled $225.3 million, an increase of 2.0%. Key components of this increase include:
Business-type revenues increased $3.0 million to $71.3 million due to increases in charges for services, capital
grants, and investment earnings, which were partially offset by a decrease in miscellaneous revenue.
Income (loss) before capital contributions and transfers amounted to:
Water fund: $ 1,141,669
Sanitary sewer fund: 395,641
Storm fund: 1,369,807
Solid waste fund: 862,974
Non-major funds: 292,794
$ 4,062,885
Net transfers totaled ($36,735).
$0
$5
$10
$15
$20
$25
$30
MillionsProgram Revenues
Expenses
City of Auburn: 2015 CAFR Management’s Discussion and Analysis
24
The following chart shows the relative net position balances for each business-type fund:
Business Type Net Position – By Fund
The majority of net position in the City’s enterprise funds relate to capital asset infrastructure, such as water and sewer
mains and the airport runway. As such, most of the net position is not available to support the ongoing expenses of
the funds.
Water
31.5%
Sanitary Sewer
35.9%
Storm Drainage
26.4%
Solid Waste
1.5%
Airport
4.2%
Cemetery
0.6%
City of Auburn: 2015 CAFR Management’s Discussion and Analysis
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Following are two charts that contrast the total net position to the spendable portion of net position for each
enterprise fund:
Comparison of Total Net Position to Spendable Net Position
Utility Funds
Comparison of Total Net Position to Spendable Net Position
Other Enterprise Funds
$0
$10
$20
$30
$40
$50
$60
$70
$80
$90
Water Sanitary Sewer Storm Drainage Solid WasteMillionsSpendable Net Position
Total Net Position
$0
$1
$2
$3
$4
$5
$6
$7
$8
$9
$10
Airport CemeteryMillionsSpendable Net Position
Total Net Position
City of Auburn: 2015 CAFR Management’s Discussion and Analysis
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The first chart following depicts the revenues and expenses for business-type funds, while the second shows the various
sources of business-type revenue.
Business Type Activity Revenues and Expenses
Before Capital Contributions and Transfers
Business Type Activity Revenues
By Source
$0
$2
$3
$5
$6
$8
$9
$11
$12
$14
$15
$17
$18
$20
$21
$23
Water Sanitary
Sewer Storm
Drainage Solid Waste Minor
Business-Type
ActivitiesMillions Revenues
Expenses
Charges for Services
88.0%
Capital Contributions
8.2%
Investment Earnings
0.1%
Business-type
Miscellaneous Income
3.8%
City of Auburn: 2015 CAFR Management’s Discussion and Analysis
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Financial Analysis of Governmental Funds
The purpose of the City’s governmental funds is to report on near -term revenues/financial resources and expenditures.
This information helps determine the City’s financial requirements in the near future. Specifically, fund balance is a
good indicator of the City’s financial resources.
As of December 31, 2015, the City’s governmental funds had combined fund balances of $55.4 million, an increase of
$4.3 million or 8.4% over the previous year. This increase is primarily due to increases in fund balances for the
General fund, Capital Improvement fund, and other governmental funds. The following table shows the changes in
fund balance between 2014 and 2015.
Changes in Fund Balance - By Fund
Of the government funds’ total fund balances, $20.3 million is unassigned. Nonspendable, restricted, committed and
assigned fund balances total $35.2 million. Of this $35.2 million, $13.1 million is earmarked for capital projects, $13.0
million is in special revenue funds that are earmarked for specific purposes and $1.7 million is for endowment.
The general fund is the primary operating fund of the City. All receipts and payments of ordinary City operations are
processed through it unless they are required to be accounted for in another fund. At the end of 2015, the general
fund had a fund balance of $27.6 million, $7.2 million of which is assigned, and $20.3 million is unassigned.
Other funds that had significant fund balances include:
$12.0 million in the capital improvement projects fund; used for various governmental capital asset projects.
$5.9 million in the mitigation fund; used to collect fees from new development to mitigate the cost of new
roads and other infrastructure.
$1.7 million in the cemetery endowed care fund; used for maintenance of the cemetery.
$8.4 million in all other government funds; used primarily for local street improvements and local
revitalization funding.
The general fund balance of $27.6 million increased by $2.6 million from the prior year. Revenues increased with the
continued gradual improvement in the local and regional economic conditions. At the same time, expenses increased
over 2014 due to inflation and programmatic changes. Meanwhile, the City continues its vigilance in monitoring
general expenditure activity.
Fund 2015 2014 Difference
General fund 27,552,062$ 24,959,818$ 2,592,244$
Arterial street fund 2,405,821 2,781,100 (375,279)
Capital improvement fund 11,990,982 9,680,898 2,310,084
Mitigation fund 5,854,370 4,900,512 953,858
Cemetery endowment fund 1,686,280 1,669,648 16,632
All other government funds 5,947,328 7,163,470 (1,216,142)
Total 55,436,843$ 51,155,446$ 4,281,397$
City of Auburn: 2015 CAFR Management’s Discussion and Analysis
28
The following chart shows the relative fund balances for governmental funds:
Governmental Funds – Fund Balances
General fund revenue increased by $2.2 million, sources of which are shown in the chart below. Property taxes
increased $1.4 million and sales taxes increased $0.9 million. Licenses and Permits decreased by $326,000 and Charges
for Services increased by $162,000. Building permit and Plan Check activity decreased slightly from 2014 levels while
Intergovernmental revenues increased by $246,000. Fines and Forfeitures decreased by $300,000, reflecting the
discontinuation of the Redflex red light traffic cameras in June 2014.
2015 General Fund Revenue Increases – By Source
General Fund
50%
Arterial Street Fund
4%
Capital Improvement
Fund
22%
Mitigation Fund
10%
Cemetery Endowment
Fund
3%
All Other Government
Funds
11%
Property Taxes
$1,394,378
Sales Taxes
$823,787
Interfund
Utility Taxes
$164,712
Utility &
Admission Taxes
($144,356)
Licenses & Permits
($326,230)
Charges for Services
$161,775
Fines & Forfeitures
($300,458)
Intergovernmental
$246,174
Miscellaneous
$150,199
($500,000)
($300,000)
($100,000)
$100,000
$300,000
$500,000
$700,000
$900,000
$1,100,000
$1,300,000
$1,500,000
City of Auburn: 2015 CAFR Management’s Discussion and Analysis
29
Financial Analysis of Proprietary Funds
The City’s proprietary funds provide the same type of information as found in the government -wide financial
statements, but in greater detail. Factors affecting the finances of th e City’s proprietary funds have already been
addressed in the discussion of the City’s business-type activities.
General Fund Budgetary Highlights
The City budgets biennially by adopting two single-year budgets at the end of each even-numbered year and then
making adjustments as necessary via budget amendments throughout the next two years. Major amendments to the
2015 budget included:
Budgeted General Fund expenditures and transfers out increased from $62.8 million to $65.1 million.
Significant changes include increased costs for services provided by the King County District Court and with
Public Health of Seattle and King County as well as a $1.5 million transfer to cumulative reserves .
Reasons for the variances in the general fund between the final budget and actual results include:
Actual General Fund revenues totaled $61.0 million and exceeded budget by $2.1 million. Significant areas of
variance include sales taxes, which exceeded budget by $900,000 reflecting continued improvement in the
local economy; and licenses and permits exceeded budget by $900,000 primarily the result of development
service fees and building permits.
Actual General Fund expenditures totaled $61.1 million and were under budget by $4.0 million. Departments
experienced savings due to continued vigilance in monitoring city-wide expenditures. Significant areas of
under-expenditure include staff vacancies, reduced costs of medical benefits and employee pensions, reduced
professional services contracts, utilities, and other miscellaneous expenses.
Capital Asset and Debt Administration
Capital Assets
The City’s investment in capital assets for both its governmental and business -type activities as of December 31, 2015
totaled $621.2 million (net of accumulated depreciation), an increase of $26.8 million from 2014. This investment in
capital assets includes land, buildings, improvements, machinery and equipment, construction in progress, utility
transmission/distribution systems, roads, bridges, and other infrastructure.
Major capital asset changes during the year include:
Developer contributions resulted in an increase of $4.4 million in utility infrastructure assets and $11.9 million
in governmental infrastructure assets.
$16.7 million was spent by proprietary funds on construction projects during the year.
Purchases of government land resulted in an increase of $0.1 million.
$16.2 million was spent by governmental funds on construction projects during the year. Some of the larger
projects in the governmental funds include:
$1.8 million on 2015 Local Street Pavement Restoration
$1.5 million on Citywide Pavement Patching & Overlay
$2.8 million on AWS Fir St. SE to Hemlock St. SE
$2.6 million on the Auburn Community & Youth/Teen Center
City of Auburn: 2015 CAFR Management’s Discussion and Analysis
30
A summary of the City’s capital assets follows:
More detailed information on capital assets is provided in Note 7.
Long-term Debt
At the end of the current fiscal year, the City had total net bonded debt outstanding of $85.0 million. Of this amount,
$24.3 million is due to other governments, $30.7 million is general obligation bonds, and $30.0 million is revenue
bonds for the water, sewer and storm utilities. The City currently maintains a rating of Aa3 with Moody’s and a rating
of AA+ with Standard & Poor’s for its general obligation debt.
The following schedule summarizes the City’s bonded debt:
Below is a summary of additional, non-bonded long-term debt and liabilities of the City:
Other Long-Term Debt and Liabilities
Public Works Trust Fund loans 11,650,644$
Capital Lease 569,773$
Employee leave benefits 7,954,705
Other Post Employment Benefits 7,247,623
Pension Liability 18,726,785
46,149,530$
Washington State law limits the amount of general obligation debt a governmenta l entity may issue to 7.5% of its
total assessed value. Of the 7.5% limit, 2.5% is for general purposes, 2.5% is for open spaces/parks, and 2.5% is for
utilities. Non-voted (limited tax) general obligation indebtedness is limited to 1.5% of assessed valu ation. The
combination of unlimited tax and limited tax general obligation debt for all purposes cannot exceed 7.5% of asse ssed
valuation.
Additional information can be found in note 9 and in the statistical section of this report.
Summary of Capital Assets (net of depreciation)
As of 12/31/15 As of 12/31/14 As of 12/31/15 As of 12/31/14 As of 12/31/15 As of 12/31/14
Land 108,289,765$ 107,948,445$ 12,526,187$ 12,276,187$ 120,815,952$ 120,224,632$
Building 48,343,093 49,309,380 1,920,573 2,047,005 50,263,666 51,356,385
Site improvements 8,184,800 8,792,962 188,501,387 181,141,467 196,686,187 189,934,429
Equipment 7,273,562 6,946,074 296,076 299,545 7,569,638 7,245,619
Intangibles 347,093 501,656 5,196,600 5,196,600 5,543,693 5,698,256
Infrastructure 213,829,979 201,159,595 - - 213,829,979 201,159,595
Construction in progress 9,589,142 9,017,708 16,866,891 9,766,126 26,456,033 18,783,834
395,857,434$ 383,675,820$ 225,307,714$ 210,726,930$ 621,165,148$ 594,402,750$
Governmental Activities Business-type Activities Total
Summary of Bonded Debt
Governmental
Activities
Business-type
Activities Total
General obligation bonds 29,980,000$ 680,000$ 30,660,000$
Revenue bonds - 30,010,000 30,010,000
Due to other governments 24,277,650$ - 24,277,650
54,257,650$ 30,690,000$ 84,947,650$
City of Auburn: 2015 CAFR Management’s Discussion and Analysis
31
Economic Factors
Over the past year, economic conditions continued to improve locally. Real estate activity improved and real
property values reversed a four-year downward trend, retail sales continued to increase, and the rate of
unemployment in the County and City remained at pre-recession levels. However, while general economic conditions
have improved over the past two years, the City is still recovering from the impacts of the recession and several areas
at the Federal and State levels of government continue to cast a shadow. These negative factors include; the ongoing
disagreements within the United States Congress on finding a long -term solution to fund governmental services, as well
as, at a State level, long-term fiscal challenges for addressing holes left by one-time budget fixes in the current budget,
and the need to fund $1 billion in order to meet basic education mandates. Additionally, the State and City continues
to grapple with the financial impacts of the streamlined sales tax revenue distributions to ci ties at reduced levels,
compounded by the diversion of local liquor revenues.
While general economic conditions in the region have improved, and the economic outlook for the City is positive,
short-term challenges to the City’s overall financial condition remain. And although the City has seen significant private
investments in the community, including development within several blocks in downtown that will serve as a catalyst
for future redevelopment, the City remains cautious and continues to vigilantly monitor and control its expenses in
order to live within the City’s means.
Requests for Information
This financial report is designed to provide a general overview of the City of Auburn’s finances for readers with an
interest in the City’s finances. Questions concerning this report, or requests for additional information, may be
addressed to the Finance Director, City of Auburn, 25 West Main Street, Auburn WA 98001 -4998.
City of Auburn: 2015 CAFR Management’s Discussion and Analysis
32
City of Auburn: 2015 CAFR Basic Financial Statements
33
GOVERNMENT-WIDE FINANCIAL STATEMENTS
The City presents two government-wide financial statements.
The Statement of Net Position
This statement provides information all on city assets and liabilities, with the difference between
the two reported as net position.
The Statement of Activities
This statement is focused on both the gross and net cost of various functions, including both
governmental and business-type activities, which are supported by the City’s general tax and other
revenues.
City of Auburn: 2015 CAFR Basic Financial Statements
34
City of Auburn: 2015 CAFR Basic Financial Statements
35
Governmental Business-Type
Activities Activities Total
ASSETS:
Cash and Cash Equivalents (Note 3)52,457,139$ 36,626,402$ 89,083,541$
Investments (Note 3)237,310 - 237,310
Receivables
Taxes 282,978 - 282,978
Customer Accounts 725,539 6,407,678 7,133,217
Other Receivables 2,293,660 - 2,293,660
Special Assessments 15,899 - 15,899
Due From Other Governmental Units (Note 6)2,807,323 257,009 3,064,332
Internal Balances (310,427) 310,427 -
Materials and Supplies Inventory 233,296 173,515 406,811
Restricted Assets:
Temporarily Restricted:
Cash and Cash Equivalents (Note 3)12,320,259 8,385,350 20,705,609
Due From Other Governmental Units (Note 6)4,013,982 - 4,013,982
Permanently Restricted:
Cash and Cash Equivalents (Note 3)1,585,707 - 1,585,707
Prepaids 765,610 - 765,610
Long-Term Contracts and Notes 25,692 690,900 716,592
Net Pension Asset (Note 10)5,350,418 - 5,350,418
Investment in Joint Ventures (Note 15)31,462,656 - 31,462,656
Depreciable Capital Assets (Net of Accumulated Depreciation) (Note 7)277,978,527 190,718,036 468,696,563
Non-Depreciable Capital Assets (Note 7)117,878,907 34,589,678 152,468,585
Total Assets 510,124,475 278,158,995 788,283,470
DEFERRED OUTFLOWS OF RESOURCES:
Deferred Outflows from Bond Refunding 16,759 33,237 49,996
Deferred Outflows related to Pensions 2,042,218 762,325 2,804,543
Total Deferred Outflow of Resources 2,058,977 795,562 2,854,539
LIABILITIES:
Accounts Payable 5,530,460 4,762,672 10,293,132
Other Liabilities Payable 684,294 - 684,294
Payable From Restricted Assets:
Accrued Interest - 1,609,552 1,609,552
Deposits - 185,309 185,309
Unearned Revenue 25,692 - 25,692
Bonds and Other Debt Payable:
Due Within One Year (Note 9)3,184,663 2,963,393 6,148,056
Due in More Than One Year (Note 9)33,651,408 37,220,946 70,872,354
Due to Other Governmental Units:
Due Within One Year (Note 9)664,950 - 664,950
Due in More Than One Year (Note 9)23,612,700 - 23,612,700
Net Penion Liability 12,828,199 5,898,586 18,726,785
Net OPEB Obligation (Note 11)7,247,623 - 7,247,623
Total Liabilities 87,429,989 52,640,458 140,070,447
DEFERRED INFLOWS OF RESOURCES:
Deferred Inflows related to Pensions 3,260,251 970,315 4,230,566
Total Deferred Inflows of Resources 3,260,251 970,315 4,230,566
NET POSITION
Net Investment in Capital Assets 361,094,242 187,604,782 548,699,024
Restricted:
Capital Projects 17,134,142 799 17,134,941
Nonexpendable Permanent Endowment 1,585,707 - 1,585,707
Debt Service 13,278 4,349,763 4,363,041
Tourist Promotion 201,293 - 201,293
Drug Investigation and Enforcement 443,161 - 443,161
Community Development Block Grant Program 44,904 - 44,904
Central Business District Development 48,395 - 48,395
Rate Stabilization - 413,778 413,778
Unrestricted 40,928,090 32,974,662 73,902,752
Total Net Position 421,493,212$ 225,343,784$ 646,836,996$
The notes to the basic financial statements are an integral part of this statement.
Primary Government
City of Auburn, Washington
STATEMENT OF NET POSITION
December 31, 2015
City of Auburn: 2015 CAFR Basic Financial Statements
36
Charges Operating Capital
for Services Grants and Grants and
Expenses and Fines Contributions Contributions
FUNCTIONS / PROGRAMS:
Primary Government
Governmental Activities:
General Government 9,187,539$ 1,243,263$ 241,898$ 442,648$
Public Safety 29,883,217 1,993,117 1,511,895 -
Transportation 17,324,036 1,446,026 3,953 17,374,384
Physical Environment 2,924,046 384,485 204,079 350,628
Culture and Recreation 12,096,651 3,052,599 2,268,531 941,576
Economic Environment 3,044,354 2,989,579 - 60,364
Health and Human Resources 925,299 - 3,953 356,948
Interest on Long-Term Debt 1,986,853 - - -
77,371,995 11,109,069 4,234,309 19,526,548
Business-Type Activities
Water 13,691,529 14,225,395 - 1,999,057
Sanitary Sewer 23,992,161 24,325,029 - 1,572,756
Storm Drainage 8,308,559 9,255,944 - 2,250,044
Solid Waste 12,907,832 13,770,806 106,286 -
Nonmajor Business-Type Activities 2,062,695 1,813,965 - -
60,962,776 63,391,139 106,286 5,821,857
Total Primary Government 138,334,771$ 74,500,208$ 4,340,595$ 25,348,405$
General Revenues:
Taxes:
Property
Retail Sales and Use
Interfund Utility
Utility
Excise
Other
Investment Earnings
Other Revenues
Gain on Sale of Capital Assets
Contributions to Endowment Funds
Transfers (Note 5)
Total General Revenues
Change in Net Position
Net Position, January 1, as Previously Reported
Change In Accounting Principle
Net Position, January 1 restated
Net Position, December 31
The notes to the basic financial statements are an integral part of this statement.
Program Revenues
City of Auburn, Washington
STATEMENT OF ACTIVITIES
For the Year Ended December 31, 2015
Page 1 of 2
City of Auburn: 2015 CAFR Basic Financial Statements
37
Governmental Business-Type
Activities Activity Total
(7,259,730)$ -$ (7,259,730)$
(26,378,205) - (26,378,205)
1,500,327 - 1,500,327
(1,984,854) - (1,984,854)
(5,833,945) - (5,833,945)
5,589 - 5,589
(564,398) - (564,398)
(1,986,853) - (1,986,853)
(42,502,069) - (42,502,069)
- 2,532,923 2,532,923
- 1,905,624 1,905,624
- 3,197,429 3,197,429
- 969,260 969,260
- (248,730) (248,730)
- 8,356,506 8,356,506
(42,502,069)$ 8,356,506$ (34,145,563)$
17,271,705$ -$ 17,271,705$
21,125,730 - 21,125,730
4,260,831 - 4,260,831
8,838,179 - 8,838,179
4,999,517 - 4,999,517
4,722,482 - 4,722,482
118,399 70,560 188,959
153,041 1,871,835 2,024,876
- 10,000 10,000
41,559 - 41,559
(462,955) 462,955 -
61,068,488 2,415,350 63,483,838
18,566,419 10,771,856 29,338,275
416,383,399 220,938,606 637,322,005
(13,456,606) (6,366,678) (19,823,284)
402,926,793 214,571,928 617,498,721
421,493,212$ 225,343,784$ 646,836,996$
Changes in Net Position
Net (Expense) Revenue and
Page 2 of 2
City of Auburn: 2015 CAFR Basic Financial Statements
38
City of Auburn: 2015 CAFR Basic Financial Statements
39
MAJOR GOVERNMENTAL FUNDS
General Fund
The general fund accounts for all of the City's financial resources except those required by statute
or generally accepted accounting principles to be accounted for in another fund. As is the case
with most municipalities, the general fund is the largest and most important accounting entity of
the City. As noted in the statements that follow, the general fund receives the bulk of its
revenues from local taxes, followed by State shared revenues, service charges, and other income.
The general fund is accounted for on a modified accrual basis. Biennial budgets are
adopted with appropriations lapsing at the end of each year of the biennium.
Arterial Street Fund
This fund is supported by the State of Washington’s motor vehicle fuel tax and by various
grants and is used for major street construction.
Capital Improvement Projects Fund
This fund accounts for major capital acquisitions, and streets and parks construction
projects.
City of Auburn: 2015 CAFR Basic Financial Statements
40
Other Total
General Arterial Capital Governmental Governmental
Fund Street Improvement Funds Funds
ASSETS:
Cash and Cash Equivalents 25,743,727$ 819,604$ 11,867,119$ 12,879,815$ 51,310,265$
Investments (Note 3)237,310 - - - 237,310
Receivables:
Taxes 282,978 - - - 282,978
Customer Accounts 69,161 447,874 - 132,013 649,048
Other Receivables 1,966,936 - - 325,941 2,292,877
Special Assessments - - - 15,899 15,899
Interfund Receivable (Note 5)400,000 - 183,395 - 583,395
Long-Term Notes and Contracts - - 25,692 - 25,692
Due From Other Governmental Units (Note 6)2,801,547 2,158,971 102,600 1,752,411 6,815,529
Prepaids 127 - - - 127
Total Assets 31,501,786 3,426,449 12,178,806 15,106,079 62,213,120
LIABILITIES, DEFERRED INFLOWS AND FUND BALANCES:
Liabilities:
Current Payables 2,433,228 1,020,628 162,132 1,084,065 4,700,053
Customer Deposits 343,714 - - - 343,714
Interfund Payable (Note 5)- - - 400,000 400,000
Other Liabilities Payable 68,705 - - 118,137 186,842
Unearned Revenue - - 25,692 - 25,692
Total Liabilities 2,845,647 1,020,628 187,824 1,602,202 5,656,301
Deferred Inflow of Resources:
Unavailable Revenue-Special Assessments - - - 15,899 15,899
Unavailable Revenue-Other 1,104,077 - - - 1,104,077
Total Deferred Inflow of Resources 1,104,077 - - 15,899 1,119,976
Fund Balances: (Note 1)
Nonspendable 127 - - - 127
Nonspendable Permanent Endowment - - - 1,585,707 1,585,707
Restricted - 2,405,821 8,168,980 7,310,372 17,885,173
Committed - - - 3,658,719 3,658,719
Assigned 7,284,159 - 3,822,002 933,180 12,039,341
Unassigned 20,267,776 - - - 20,267,776
Total Fund Balances:27,552,062 2,405,821 11,990,982 13,487,978 55,436,843
Total Liabilities, Deferred Inflows and Fund Balances 31,501,786$ 3,426,449$ 12,178,806$ 15,106,079$ 62,213,120$
The notes to the basic financial statements are an integral part of this statement.
City of Auburn, Washington
BALANCE SHEET
GOVERNMENTAL FUNDS
December 31, 2015
City of Auburn: 2015 CAFR Basic Financial Statements
41
Total governmental fund balances as reported on this statement 55,436,843$
Amounts reported for governmental activities in the statement of net position are different because:
Capital assets used in governmental activities are not financial resources and therefore 389,002,397
not reported in the governmental funds.
Other non-current assets used in governmental activities are not financial resources and therefore are
not reported in the governmental funds.
Investment in Joint Ventures 7,185,006
Prepaids 765,483
Interest receivable on investments 783
Net pension asset 5,350,418
13,301,690
Other long-term assets are not available to pay for current-period expenditures and therefore
are reported as unavailable revenue in the governmental funds.
Unearned revenue beyond the city's 30-day measurable and available period 1,104,077
Unavailabe revenue reported for special assessments 15,899
1,119,976
Internal service funds are used by management to charge the cost of certain activities, such as insurance, fleet
maintenance and information technology, to individual funds. The assets and liabilities of these internal service 18,420,071
funds are included in governmental activities in the statement of net position.
Some liabilities are not due and payable in the current period and therefore are not reported
in the governmental funds.
Bonds and loans payable (34,450,978)
Premium on Bonds Payable (143,382)
Deferred amount on bond refunding 16,759
Deferred amounts related to pensions (1,146,805)
Interest payable (153,438)
Net pension liability (10,796,897)
Net other postemployment obligations (7,247,623)
Compensated absences payable (1,865,401)
(55,787,765)
Net position of government activities as reported on the statement of net position 421,493,212$
The notes to the basic financial statements are an integral part of this statement.
RECONCILIATION OF BALANCE SHEET OF GOVERNMENT FUNDS TO THE STATEMENT OF NET POSITION
December 31, 2015
City of Auburn, Washington
City of Auburn: 2015 CAFR Basic Financial Statements
42
Other Total
General Arterial Capital Governmental Governmental
Fund Street Improvement Funds Funds
REVENUES:
Taxes:
Property 17,199,418$ -$ -$ 137,690$ 17,337,108$
Retail Sales & Use 18,573,172 - - 2,552,558 21,125,730
Interfund Utility 3,652,141 - - 608,690 4,260,831
Utility 7,448,255 - - 1,389,924 8,838,179
Excise 333,176 - 4,555,215 111,126 4,999,517
Other - - - 70,972 70,972
Licenses and Permits 2,074,432 - - - 2,074,432
Intergovernmental 5,463,158 4,626,658 83,728 3,446,902 13,620,446
Charges for Services 4,327,676 657,469 - 2,336,150 7,321,295
Fines and Forfeitures 938,775 - - - 938,775
Special Assessments - - - 7,494 7,494
Investment Earnings 72,652 2,670 18,129 24,491 117,942
Miscellaneous 1,025,251 725,173 5,677 134,318 1,890,419
Total Revenues 61,108,106 6,011,970 4,662,749 10,820,315 82,603,140
EXPENDITURES:
Current:
General Government 8,661,592 - - - 8,661,592
Security of Persons and Property 28,488,088 - - 676,684 29,164,772
Physical Environment 2,991,145 - - - 2,991,145
Transportation 3,033,415 6,862,458 - 6,427,552 16,323,425
Economic Environment 2,518,399 - - 548,275 3,066,674
Health and Human Services 925,299 - - - 925,299
Culture and Recreation 10,700,631 - - 49 10,700,680
Debt Service:
Principal 270,887 197,376 - 1,245,677 1,713,940
Interest and Other Costs 35,911 21,385 - 1,743,813 1,801,109
Capital Outlay 38,583 - 505,205 3,036,516 3,580,304
Total Expenditures 57,663,950 7,081,219 505,205 13,678,566 78,928,940
Excess (Deficiency) of Revenues
Over (Under) Expenditures 3,444,156 (1,069,249) 4,157,544 (2,858,251) 3,674,200
OTHER FINANCING SOURCES (USES):
Sales of Capital Assets 4,000 - 17,952 - 21,952
Insurance Recoveries 153,041 - - - 153,041
Transfers In (Note 5)2,949,197 694,348 15,167 3,442,118 7,100,830
Transfers Out (Note 5)(3,958,150) (378) (1,880,579) (829,519) (6,668,626)
Total Other Financing Sources and Uses (851,912) 693,970 (1,847,460) 2,612,599 607,197
Net Change in Fund Balances 2,592,244 (375,279) 2,310,084 (245,652) 4,281,397
Fund Balances - Beginning 24,959,818 2,781,100 9,680,898 13,733,630 51,155,446
Fund Balances - Ending 27,552,062$ 2,405,821$ 11,990,982$ 13,487,978$ 55,436,843$
The notes to the basic financial statements are an integral part of this statement.
City of Auburn, Washington
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
GOVERNMENTAL FUNDS
For the Year Ended December 31, 2015
City of Auburn: 2015 CAFR Basic Financial Statements
43
Net change in fund balances per the Statement of Revenues, Expenditures and Changes in Fund Balance 4,281,397$
Amount reported as change in net position in the Statement of Activities are different because:
Governmental funds report capital outlays as expenditures. However, in the statement
of activities the cost of those assets is allocated over their estimated useful lives and
reported as depreciation expense. This is the amount by which capital outlay ($14,982,139)
exceeded depreciation ($15,141,188) in the current period.(159,049)
Certain Capital and Joint Venture activities do not use or provide current financial resources
but increase net position.692,263
Governmental funds report sales of assets as other financing sources while the Statement of Activities
reports only the gain or loss on sale of capital assets.(1,686)
Debt proceeds are reported as financing sources in governmental fund and thus contribute to the
change in fund balances. In the government-wide statements, however, issuing debt increases
long-term liabilities in the statement of net position and does not affect the statement of activities.
Debt transferred from Cemetery Fund to governmental activities (499,690)
Revenues in the Statement of Activities that do not provide current financial resources
are not reported as revenues in the funds:
Property taxes (65,403)
Special assessments (7,648)
Other unavailable revenue (141,765)
Amortization of bond premium 29,141
(187,586)
Developer contributions and annexation of infrastructure assets are reported as revenue in the statement
of activities, but do not provide current financial resources and are not reported as fund revenue.11,926,684
Repayment of the principal of long-term debt consumes the current financial resources of
governmental funds but has no effect on the net position. 1,488,263
Internal service funds are used by management to charge the costs of certain activities,
such as insurance and fleet maintenance, to individual funds. The net revenue (expense)
of certain internal service funds is reported with governmental activities.956,380
Some expenses reported in the Statement of Activities do not require the use of current
financial resources and therefore are not reported as expenditures in governmental funds.
Amortization of prepaids (109,355)
Change in accrued interest payable 3,547
Change in net pension obligation or asset 1,367,691
Change in net other postemployment benefits (1,036,159)
Change in compensated absences payable (156,281)
69,443
Change in net position on the Statement of Activities 18,566,419$
The notes to the basic financial statements are an integral part of this statement.
City of Auburn, Washington
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN
FUND BALANCES OF GOVERNMENT FUNDS TO THE STATEMENT OF ACTIVITIES
For the Year Ended December 31, 2015
City of Auburn: 2015 CAFR Basic Financial Statements
44
Variance with
Final Final Budget
Original Adopted Actual Positive
(GAAP Basis)(GAAP Basis)Results (Negative)
REVENUES:
Taxes:
Property 16,708,900$ 17,182,600$ 17,199,418$ 16,818$
Retail Sales & Use 17,389,000 17,389,000 18,573,172 1,184,172
Interfund Utility 3,452,300 3,452,300 3,652,141 199,841
Utility 7,786,800 7,786,800 7,448,255 (338,545)
Excise 265,400 265,400 333,176 67,776
Licenses and Permits 1,851,300 1,851,300 2,074,432 223,132
Intergovernmental 5,262,430 5,434,951 5,463,158 28,207
Charges for Services 3,380,880 3,394,780 4,327,676 932,896
Fines and Forfeitures 1,388,040 788,040 938,775 150,735
Investment Earnings 36,850 36,850 56,935 20,085
Miscellaneous 681,400 689,500 1,025,251 335,751
Total Revenues 58,203,300 58,271,521 61,092,389 2,820,868
EXPENDITURES:
Current:
General Government 9,678,999 9,711,057 8,661,592 1,049,465
Security of Persons and Property 30,184,255 29,771,620 28,488,088 1,283,532
Physical Environment 3,014,688 3,148,192 2,991,145 157,047
Transportation 3,405,676 3,415,676 3,033,415 382,261
Economic Environment 2,721,609 2,966,625 2,518,399 448,226
Health and Human Services 618,126 1,146,326 925,299 221,027
Culture and Recreation 10,910,923 11,016,220 10,700,631 315,589
Debt Service 305,290 328,307 306,798 21,509
Capital Outlay 5,000 42,854 38,583 4,271
Total Expenditures 60,844,566 61,546,877 57,663,950 3,882,927
Excess (Deficiency) of Revenues
Over (Under) Expenditures (2,641,266) (3,275,356) 3,428,439 6,703,795
OTHER FINANCING SOURCES (USES):
Sales of Capital Assets - - 4,000 4,000
Insurance Recoveries 25,000 50,600 153,041 102,441
Transfers In (Note 5)539,380 560,823 149,197 (411,626)
Transfers Out (Note 5)(1,968,695) (3,514,748) (3,528,044) (13,296)
Total Other Financing Sources and Uses (1,404,315) (2,903,325) (3,221,806) (318,481)
Net Change in Fund Balances (4,045,581) (6,178,681) 206,633 6,385,314
Fund Balances - Beginning 14,592,724 19,360,132 19,360,132 -
Fund Balances - Ending 10,547,143$ 13,181,451$ 19,566,765$ 6,385,314$
RECONCILIATION OF PERSPECTIVE DIFFERENCE BETWEEN BUDGETARY INFORMATION AND
GENERALLY ACCEPTED ACCOUNTING PRINCIPLES (GAAP):
The Cumulative Reserve Fund is combined with
the General Fund for purposes of GASB Statement 54 7,985,297
Fund Balance - Ending (GAAP)27,552,062$
The notes to the basic financial statements are an integral part of this statement.
Budget Amounts
For the Year Ended December 31, 2015
City of Auburn, Washington
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
GENERAL FUND
City of Auburn: 2015 CAFR Basic Financial Statements
45
Variance with
Final Final Budget
Original Adopted Actual Positive
(GAAP Basis)(GAAP Basis)Results (Negative)
REVENUES:
Taxes:
Intergovernmental 10,090,137$ 13,799,627$ 4,626,658$ (9,172,969)$
Charges for Services - 776,356 657,469 (118,887)
Investment Earnings 2,000 2,000 2,670 670
Miscellaneous 1,050,000 2,001,328 725,173 (1,276,155)
Total Revenues 11,142,137 16,579,311 6,011,970 (10,567,341)
EXPENDITURES:
Current:
Transportation 14,137,487 20,857,703 6,862,458 13,995,245
Debt Service
Principal 196,006 197,377 197,376 1
Interest and Other Costs 21,237 21,386 21,385 1
Total Expenditures 14,354,730 21,076,466 7,081,219 13,995,247
Excess (Deficiency) of Revenues
Over (Under Expenditures (3,212,593) (4,497,155) (1,069,249) 3,427,906
OTHER FINANCING SOURCES (USES):
Transfers In (Note 5)3,008,453 3,350,137 694,348 (2,655,789)
Transfers Out (Note 5)- (10,053) (378) 9,675
Total Other Financing Sources and Uses 3,008,453 3,340,084 693,970 (2,646,114)
Net Change in Fund Balances (204,140) (1,157,071) (375,279) 781,792
Fund Balances - Beginning 1,312,844 2,781,100 2,781,100 -
Fund Balances - Ending 1,108,704$ 1,624,029$ 2,405,821$ 781,792$
The notes to the basic financial statements are an integral part of this statement.
Budget Amounts
For the Year Ended December 31, 2015
City of Auburn, Washington
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
ARTERIAL STREET FUND
City of Auburn: 2015 CAFR Basic Financial Statements
46
City of Auburn: 2015 CAFR Basic Financial Statements
47
MAJOR PROPRIETARY FUNDS
ENTERPRISE FUNDS
The City's enterprise funds are used to account for operations that are financed and operated in a
manner similar to private business operations. The goods and services these funds provide to the
general public are primarily financed by service charges. Enterprise funds are self-supporting and
use the accrual method of accounting. Auburn has four major enterprise funds.
The Water Fund
This fund accounts for all maintenance, construction, and debt service requirements associated
with Auburn’s water system.
The Sanitary Sewer Fund
This fund accounts for maintenance, construction, and debt requirements for Auburn's sanitary
sewer system.
The Storm Drainage Fund
This fund accounts for the maintenance, construction and debt service requirements of Auburn's
storm drainage system.
The Solid Waste Fund
Garbage collection services for the City are accounted for in this fund, supported almost entirely
by garbage collection fees. Expenses include payment to the City's garbage contractor and other
service charges.
City of Auburn: 2015 CAFR Basic Financial Statements
48
Governmental
Activities
Non-Major Total
Sanitary Storm Solid Enterprise Enterprise Internal
Water Sewer Drainage Waste Funds Funds Service Funds
ASSETS:
Current Assets
Cash and Cash Equivalents 7,002,144$ 14,160,851$ 11,232,388$ 3,105,740$ 1,125,279$ 36,626,402$ 15,052,840$
Restricted Cash:
Bond Payments 1,764,431 445,929 826,055 - - 3,036,415 -
Customer Deposits 28,301 83,272 3,422 - 70,920 185,915 -
Other 2,515,648 516,973 2,130,399 - - 5,163,020 -
Customer Accounts 1,249,164 2,607,649 1,031,656 1,519,209 - 6,407,678 76,491
Due From Other Governmental Units 1,495 1,451 158,875 51,683 43,505 257,009 5,776
Inventories 152,251 7,511 7,031 - 6,722 173,515 233,296
Total Current Assets 12,713,434 17,823,636 15,389,826 4,676,632 1,246,426 51,849,954 15,368,403
Noncurrent Assets
Long-Term Contracts and Notes - 690,900 - - - 690,900 -
Capital Assets:
Land 897,971 1,695,023 5,937,014 - 3,996,179 12,526,187 -
Water Rights 5,196,600 - - - - 5,196,600 -
Buildings and Equipment 2,489,644 1,235,992 270,619 496,618 3,729,569 8,222,442 21,069,813
Improvements Other Than Buildings 115,135,100 95,727,357 67,412,310 - 10,777,717 289,052,484 117,158
Construction in Progress 10,225,733 2,143,531 4,155,388 - 342,239 16,866,891 43,655
Less: Accumulated Depreciation (48,254,811) (27,227,205) (22,518,801) (411,931) (8,144,142) (106,556,890) (14,375,589)
Total Capital Assets (Net of A/D)85,690,237 73,574,698 55,256,530 84,687 10,701,562 225,307,714 6,855,037
Total Noncurrent Assets 85,690,237 74,265,598 55,256,530 84,687 10,701,562 225,998,614 6,855,037
Total Assets 98,403,671 92,089,234 70,646,356 4,761,319 11,947,988 277,848,568 22,223,440
DEFERRED OUTFLOW OF RESOURCES:
Deferred Outflow from Bond Refunding - - - - 33,237 33,237 -
Deferred Outflow related to Pensions 265,638 168,303 248,863 39,059 40,462 762,325 265,336
265,638 168,303 248,863 39,059 73,699 795,562 265,336
LIABILITIES:
Current Liabilities:
Current Payables 1,255,071 1,790,436 384,665 1,199,245 133,255 4,762,672 830,407
Customer Deposits - - - - - - 300
Interfund Payables (Note 5)- - - - 183,395 183,395 -
Loans Payable - Current 572,855 288,262 - - - 861,117 -
Employee Leave Benefits - Current 175,527 101,452 163,912 28,344 18,041 487,276 149,260
Revenue Bonds Payable - Current 887,033 154,665 423,302 - - 1,465,000 -
General Obligation Bonds Payable - Current - - - - 150,000 150,000 -
Payable From Restricted Assets:
Accrued Interest 908,148 298,652 402,752 - - 1,609,552 -
Deposits 28,301 83,272 3,422 - 70,314 185,309 -
Other Liabilities Payable - - - - - - 39,107
Total Current Liabilities 3,826,935 2,716,739 1,378,053 1,227,589 555,005 9,704,321 1,019,074
Noncurrent Liabilities
Employee Leave Benefits 48,756 28,180 45,530 7,873 5,011 135,350 41,459
Other LT Liabilities Payable - - - - - - 146,484
Loans Payable 4,035,798 2,666,932 - - - 6,702,730 -
Revenue Bonds Payable 16,712,597 4,734,612 8,392,170 - - 29,839,379 -
General Obligation Bonds Payable - - - - 543,487 543,487 -
Net Pension Liability 2,880,872 1,192,185 1,448,887 193,738 182,904 5,898,586 2,031,302
Total Noncurrent Liabilities 23,678,023 8,621,909 9,886,587 201,611 731,402 43,119,532 2,219,245
Total Liabilities 27,504,958 11,338,648 11,264,640 1,429,200 1,286,407 52,823,853 3,238,319
DEFERRED INFLOW OF RESOURCES:
Deferred Inflow related to Pensions 382,309 208,328 291,238 43,908 44,532 970,315 336,564
NET POSITION:
Net Investment in Capital Assets:64,367,289 65,730,228 47,381,266 84,687 10,041,312 187,604,782 6,669,446
Restricted for:
Debt Service 2,486,597 663,450 1,199,716 - - 4,349,763 -
Capital Projects - 799 - - - 799 -
Rate Stabilization - - 413,778 - - 413,778 -
Unrestricted 3,928,156 14,316,084 10,344,581 3,242,583 649,436 32,480,840 12,244,447
Total Net Position 70,782,042$ 80,710,561$ 59,339,341$ 3,327,270$ 10,690,748$ 224,849,962$ 18,913,893$
Adjustment to reflect the consolidation
of internal service funds related to
enterprise funds 493,822
Net position of business-type activities 225,343,784$
The notes to the basic financial statements are an integral part of this statement.
City of Auburn, Washington
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
December 31, 2015
Enterprise Funds
City of Auburn: 2015 CAFR Basic Financial Statements
49
Governmental
Activities
Non-Major Total
Sanitary Storm Solid Enterprise Enterprise Internal
Water Sewer Drainage Waste Funds Funds Service Funds
OPERATING REVENUES:
Charges of Services 14,225,395$ 24,325,029$ 9,255,944$ 13,770,806$ 1,117,625$ 62,694,799$ 13,057,948$
Other Operating Revenue - - - - 696,340 696,340 211,031
Total Operating Revenue 14,225,395 24,325,029 9,255,944 13,770,806 1,813,965 63,391,139 13,268,979
OPERATING EXPENSES:
Operations & Maintenance 5,724,361 17,653,404 2,193,960 11,222,806 301,153 37,095,684 9,427,887
Administration 2,773,952 2,185,454 3,190,200 671,596 688,285 9,509,487 818,370
Depreciation / Amortization 2,934,694 2,120,150 1,663,208 18,819 518,827 7,255,698 1,551,966
Other Operating Expenses 1,650,719 1,970,380 838,769 994,611 12,906 5,467,385 -
Total Operating Expenses 13,083,726 23,929,388 7,886,137 12,907,832 1,521,171 59,328,254 11,798,223
Operating Income (Loss)1,141,669 395,641 1,369,807 862,974 292,794 4,062,885 1,470,756
NON-OPERATING REVENUE (EXPENSE):`
Interest Revenue 19,431 21,118 24,258 3,908 1,845 70,560 20,118
Other Non-Operating Revenue 241,238 90,236 1,470,510 106,566 69,571 1,978,121 110,986
Gain on Sale of Capital Assets - - 10,000 - - 10,000 (30,466)
Interest Expense (606,837) (277,923) (153,180) - - (1,037,940) (2,951)
Other Non-Operating Expenses (966) (1,444) (269,242) - (41,834) (313,486) -
Total Non-Operating Revenue (Expense)(347,134) (168,013) 1,082,346 110,474 29,582 707,255 97,687
Income (Loss) Before Contributions & Transfers 794,535 227,628 2,452,153 973,448 322,376 4,770,140 1,568,443
Capital Contribution 1,999,057 1,572,756 2,250,044 - - 5,821,857 -
Transfers In (Note 5)- - 526,059 - 30,000 556,059 500,919
Transfers Out (Note 5)(203,642) (190,371) (198,781) - - (592,794) (896,388)
Change in Net Position 2,589,950 1,610,013 5,029,475 973,448 352,376 10,555,262 1,172,974
Net Position, January 1, as Previosly Reported 71,320,494 80,384,818 55,862,809 2,560,449 10,532,808 220,661,378 19,932,921
Change in Accounting Principle (3,128,402) (1,284,270) (1,552,943) (206,627) (194,436) (6,366,678) (2,192,002)
Net Position, January 1 restated 68,192,092 79,100,548 54,309,866 2,353,822 10,338,372 214,294,700 17,740,919
Net Position, December 31 70,782,042$ 80,710,561$ 59,339,341$ 3,327,270$ 10,690,748$ 224,849,962$ 18,913,893$
Change in net position from this statement 4,188,584
Adjustment to reflect the consolidation of internal service fund
activities related to enterprise funds 216,594
Change in net position of business-type activities 4,405,178$
The notes to the basic financial statements are an integral part of this statement.
City of Auburn, Washington
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION
PROPRIETARY FUNDS
For the Year Ended December 31, 2015
Enterprise Funds
City of Auburn: 2015 CAFR Basic Financial Statements
50
Page 1 of 2
Government
Non Major Activities
Sanitary Storm Solid Enterprise Internal
Water Sewer Drainage Waste Funds Total Service Funds
CASH FLOWS FROM OPERATING ACTIVITIES:
Cash Received from Users 14,276,698$ 24,277,913$ 9,268,774$ 13,755,430$ 1,832,457$ 63,411,272$ 13,282,259$
Cash Paid to Suppliers for Goods & Services (4,534,225) (17,473,056) (2,413,647) (11,307,645) (789,344) (36,517,917) (6,283,708)
Cash Paid for Taxes (1,650,719) (1,970,380) (838,769) (994,611) (12,906) (5,467,385) (3,318)
Cash Paid to Employees (3,539,354) (2,389,453) (3,488,998) (578,362) (663,988) (10,660,155) (4,098,075)
Other Cash Received 56,045 - - - 151 56,196 138
Net Cash Provided (Used) by Operating Activities 4,608,445 2,445,024 2,527,360 874,812 366,370 10,822,011 2,897,296
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:
Interfund Loan Payable - - - - (16,605) (16,605) -
Operating Grant 60,181 68,640 322,363 88,685 64,819 604,688 735
Other Non-Operating Revenue - (142,057) 100,961 - 4,380 (36,716) (84,106)
Transfers In - - 526,059 - 30,000 556,059 500,919
Transfers Out (203,642) (190,371) (198,781) - - (592,794) (896,388)
Net Cash Provided (Used) by Noncapital Financing Activities (143,461) (263,788) 750,602 88,685 82,594 514,632 (478,840)
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES:
Proceeds from Sale of Equipment - - 10,000 - - 10,000 116,828
Purchase of Capital Assets (8,096,678) (2,384,304) (6,579,745) - (365,571) (17,426,298) (2,027,550)
Contributed Capital 567,132 437,842 406,699 - - 1,411,673 -
Capital Grants - - 1,139,237 - (20,479) 1,118,758 -
Proceeds from Other Governments 158,603 207,203 - - - 365,806 -
Proceeds from Insurance Settlement 26,589 - - - - 26,589 106,842
Principal Payment on Debt (1,382,136) (436,790) (412,167) - (135,000) (2,366,093) 185,592
Interest Payment on Debt (1,147,836) (291,493) 35,253 - (36,675) (1,440,751) (2,951)
Debt Proceeds 850,402 - - - - 850,402 (2,951)
Net Cash Provided (Used) for Capital and Related Financing Activities (9,023,924) (2,467,542) (5,400,723) - (557,725) (17,449,914) (1,624,190)
CASH FLOW FROM INVESTING ACTIVITIES:
Proceeds from Sale of Investments - - 1,000,146 - - 1,000,146 -
Interest Received 19,431 21,118 24,258 3,908 1,845 70,560 20,118
Net Cash Provided (Used) in Investing Activities 19,431 21,118 1,024,404 3,908 1,845 1,070,706 20,118
Net Increase (Decrease) in Cash and Cash Equivalents (4,539,509) (265,188) (1,098,357) 967,405 (106,916) (5,042,565) 817,335
Cash and Cash Equivalents - Beginning of Year 15,850,033 15,472,214 15,290,621 2,138,335 1,303,115 50,054,318 14,235,505
Cash and Cash Equivalents - End of Year 11,310,524$ 15,207,026$ 14,192,264$ 3,105,740$ 1,196,199$ 45,011,753$ 15,052,840$
CASH AT END OF YEAR CONSISTS OF:
Cash and Cash Equivalents 7,002,144 14,160,851 11,232,388 3,105,740 1,125,279 36,626,402 15,052,840
Restricted Cash - Bond Payments 1,764,431 445,929 826,055 - - 3,036,415 -
Restricted Cash - Customer Deposits 28,301 83,272 3,422 - 70,920 185,915 -
Restricted Cash - Other 2,515,648 516,973 2,130,399 - - 5,163,020 -
Total Cash 11,310,524$ 15,207,025$ 14,192,264$ 3,105,740$ 1,196,199$ 45,011,752$ 15,052,840$
The notes to the basic financial statements are an integral part of this statement.
City of Auburn, Washington
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
For the Fiscal Year Ended December 31, 2015
City of Auburn: 2015 CAFR Basic Financial Statements
51
Page 2 of 2
Government
Non Major Activities
Sanitary Storm Solid Enterprise Internal
Water Sewer Drainage Waste Funds Total Service Funds
RECONCILIATION OF NET OPERATING INCOME TO NEW CASH
PROVIDED BY OPERATING ACTIVITIES
Operating Income (Loss)1,141,669$ 395,641$ 1,369,807$ 862,974$ 292,794$ 4,062,885$ 1,470,756$
ADJUSTMENTS TO RECONCILE OPERATING INCOME TO
NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES:
Depreciation 2,934,694 2,120,150 1,663,208 18,819 518,827 7,255,698 1,551,966
Asset (Increases) Decreases:
Accounts Receivable 95,142 (47,116) 12,830 (15,376) - 45,480 13,418
Miscellaneous A/R Revenue - (1,451) - - 151 (1,300) -
Inventory 836 (1,208) (368) - 2,342 1,602 (17,096)
Liability Increases (Decreases):
Accounts & Vouchers Payable 298,520 (16,459) (242,177) 170 (467,268) (427,214) (83,053)
Deposits Payable 16,342 - - - 18,492 34,834 -
Wages & Benefits Payable (23,931) (24,982) (17,322) 6,789 (1,493) (60,939) (46,274)
Compensated Absences Payable 16,442 20,449 10,625 1,436 2,525 51,477 7,579
A/P Related to Capital Asset Acquisition 128,731 - (269,243) - - (140,512) -
Total Adjustments 3,466,776 2,049,383 1,157,553 11,838 73,576 6,759,126 1,426,540
Net Cash Provided (Used) by Operating Activities 4,608,445$ 2,445,024$ 2,527,360$ 874,812$ 366,370$ 10,822,011$ 2,897,296$
SCHEDULE OF NONCASH INVESTING, CAPITAL AND
FINANCING ACTIVITIES
Capital Assets Acquired by Contributed Capital 1,431,925 1,134,914 1,843,345 - - 4,410,184 -
Total Non Cash Investing, Capital and Financing Activities 1,431,925$ 1,134,914$ 1,843,345$ -$ -$ 4,410,184$ -$
The notes to the basic financial statements are an integral part of this statement.
PROPRIETARY FUNDS
City of Auburn, Washington
STATEMENT OF CASH FLOWS
For the Fiscal Year Ended December 31, 2015
City of Auburn: 2015 CAFR Basic Financial Statements
52
City of Auburn: 2015 CAFR Basic Financial Statements
53
FIDUCIARY FUNDS
Fiduciary funds are used to account for assets held by the City of Auburn as a trustee or agent for
various individuals, private organizations, and other governmental units. The Fire Relief and
Pension Fund is accounted for on an accrual basis. The agency fund is custodial in nature;
therefore, no annual budget is adopted.
TRUST FUNDS
The Fire Relief and Pension Fund
This fund accounts for the payment of administrative costs and benefits for retired firefighters (and
beneficiaries) who were employed prior to March 1, 1970. Primary revenue sources are general
property tax allocations, fire insurance premium tax, and investment interest, in accordan ce with
actuarial recommendations.
AGENCY FUNDS
The Agency Fund
This fund accounts for the funds over which the City is strictly a short-term custodian.
City of Auburn: 2015 CAFR Basic Financial Statements
54
Fire Relief
Pension Agency
Trust Fund Fund
ASSETS:
Cash and Cash Equivalents 2,447,214$ 410,406$
Investments 71,695 -
Receivables:
Customer Accounts - 31,479
Interest 655 -
Total Assets 2,519,564 441,885
LIABILITIES:
Current Payables 7,007 372,230
Due to Other Governmental Units - 69,655
Total Liabilities 7,007 441,885
NET POSITION
Held in Trust for Pension Benefits and Other Purposes 2,512,557$ -$
The notes to the financial statements are an integral part of this statement.
City of Auburn, Washington
STATEMENT OF FIDUCIARY NET POSITION
FIDUCIARY FUNDS
December 31, 2015
City of Auburn: 2015 CAFR Basic Financial Statements
55
Fire Relief
Pension
Trust fund
ADDITIONS:
Contributions:
Fire Insurance Premiums 75,702$
Investment Earnings 5,065
Total Additions 80,767
DEDUCTIONS:
Benefit Payments 157,936
Professional Services 6,660
Administrative Expenses 13,076
Total Deductions 177,672
Change in Net Postion (96,905)
Net Position - Beginning 2,609,462
Net Position - Ending 2,512,557$
The notes to the financial statements are an integral part of this statement.
City of Auburn, Washington
STATEMENT OF CHANGES IN FIDUCIARY NET POSTION
FIDUCIARY FUNDS
For the Year Ended December 31, 2015
City of Auburn: 2015 CAFR Basic Financial Statements
56
City of Auburn: 2015 CAFR Notes to the Financial Statements
57
City of Auburn
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2015
Note 1 – Summary of Significant Accounting Policies ........................................................................................ 58
A. Reporting Entity ........................................................................................................................ 58
B. Basic Financial Statements .......................................................................................................... 59
C. Measurement Focus, Basis of Accounting, and Basis of Presentation ............................................ 59
D. Budget and Budgetary Accounting .............................................................................................. 62
E. Assets, Liabilities and Fund Balance ............................................................................................. 63
1. Deposits and Investments ..................................................................................................... 63
2. Receivables .......................................................................................................................... 64
3. Interfund Receivables and Payables ...................................................................................... 64
4. Amounts Due From Other Governmental Units.................................................................... 64
5. Inventories and Prepaid Expenses ......................................................................................... 64
6. Restricted Assets .................................................................................................................. 64
7. Interfund Transactions ......................................................................................................... 64
8. Capital Assets ...................................................................................................................... 65
9. Pensions .............................................................................................................................. 65
10. Deferred Outflows/Inflows of Resources .............................................................................. 65
11. Compensated Absences ........................................................................................................ 66
12. Unearned Revenues ............................................................................................................. 66
13. Fund Balance Components – Proprietary Funds .................................................................... 66
14. Fund Balance Components – Governmental Funds ............................................................... 66
F. Revenues, Expenditures and Expenses ......................................................................................... 68
G. Estimates ................................................................................................................................... 68
Note 2 – Stewardship, Compliance and Accountability .................................................................................... 68
Note 3 – Deposits and Investments ................................................................................................................. 68
Note 4 – Property Taxes ..................................................................................................................................71
Note 5 – Interfund Activity ............................................................................................................................. 73
Note 6 – Due From Other Governmental Units............................................................................................... 75
Note 7 – Capital Assets and Depreciation ........................................................................................................ 76
Note 8 – Capital Lease Obligation ................................................................................................................... 77
Note 9 – Long-Term Liabilities ........................................................................................................................ 78
Note 10 – Pension Plans ................................................................................................................................... 82
Note 11 – Other Post-Employment Benefits ...................................................................................................... 92
Note 12 – Association of Washington Cities Employment Benefit Trust .............................................................. 93
Note 13 – Construction Commitments .............................................................................................................. 95
Note 14 – Cemetery Endowed Care Fund ......................................................................................................... 95
Note 15 – Joint Ventures / Related Party .......................................................................................................... 95
Note 16 – Jointly Governed Organization / Related Party ................................................................................. 99
Note 17 – Contingencies and Litigations............................................................................................................ 99
Note 18 – Risk Management and Insurance....................................................................................................... 99
Note 19 – Subsequent Events .......................................................................................................................... 100
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NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The City of Auburn, King County, Washington, was incorporated in 1891. It operates under the laws of the State of
Washington applicable to a Non-Charter Code City under a Mayor/Council form of government. A full-time mayor
and seven part-time council members administer Auburn, all elected at-large to four-year terms. The City provides a
range of municipal services authorized by state law, including water services, sanitary sewer collection, solid waste
collection, storm drainage, a general aviation airport, a municipal cemetery and a municipal golf course.
The accounting and reporting policies of the City of Auburn, which conform to Generally Accepted Accounting
Principles (GAAP) for governments, are regulated by the Washington State Auditor’s Office.
The 2015 financial statements have been presented in accordance with the following new Governmental Accounting
Standards Board (GASB) Statements:
a. GASB Statement No. 68 – Accounting and Financial Reporting for Pensions; an amendment of GASB
Statement No. 27. The statement replaces the requirements of Statement No. 27 and Statement No. 50
related to the pension plans that are administered through trusts or equivalent arrangements.
The City’s significant accounting policies are described in the following notes.
A. Reporting Entity
In accordance with the criteria set forth in Statement No. 14 of the Governmental Accounting Standards Board (GASB)
the City’s Comprehensive Annual Financial Report (CAFR) includes all funds controlled by the City.
Joint Ventures - Based on the criteria of Governmental Accounting Standards Board (GASB) Statement No. 14 as
modified by GASB Statements No. 34 and 61, the Valley Communications Center and South Correctional Entity
Facility (SCORE) are included in the accompanying government-wide statement of net position as a joint venture.
(Please refer to Notes 9 and 15).
Jointly Governed Organizations - The cities of Auburn, Algona and Pacific formed the Valley Regional Fire Authority
(VRFA) effective January 1, 2007. The VRFA is a separate municipal corporation of the State of Washington,
organized as a regional fire protection service authority under RCW 52.26. The VRFA is not financially accountable to
the member cities, none of the participating cities has an ongoing financial interest in the VRFA, and the VRFA is not
financially dependent upon any member city. The VRFA imposes its own property tax levy and fire benefit charge.
As such, the VRFA is not included in the City of Auburn’s financial reporting entity.
The government-wide financial statements consist of the government-wide statement of net position and the
government-wide statement of activities.
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B. Basic Financial Statements
The City’s basic financial statements consist of government-wide financial statements and fund financial statements.
The government-wide financial statements, which include the statement of net position and the statement of activities,
summarize the entire operation of the City. The governmental fund financial statements, which include the balance
sheet, statement of revenues, expenditures and changes in fund balance, and statements of revenues, expenditures and
changes in fund balance budget and actual, provide a more detailed level of reporting. The proprietary fund financial
statements, which include statement of net position, statement of revenues, expenses, and changes in net position and
statement of cash flows, provide a more detailed level of reporting.
The government-wide financial statements report information on all of the non-fiduciary activities of the City. For the
most part, the effect of interfund activity has been eliminated from these statements. Because governmental activities
are normally supported by taxes and intergovernmental revenue, while business-type activities are generally supported
through user fees and charges, governmental activities are reported separately from business-type activities on all
government-wide financial statements.
The Statement of Net Position reports the assets, deferred outflows of resources, and liabilities of the primary
government. The net position section of this statement represents the residual amount of assets and their associated
liabilities, and deferred outflow of resources. The net position section is divided into three categories. The first
category is Net Investment in Capital Assets, which includes all capital assets, net of accumulated depreciation, less any
debt outstanding associated with the assets. Capital assets cannot readily be sold and converted into cash. The second
category is Restricted Net Position, which includes those assets, net of their related debt that have a constraint placed
on their use. The constraints are either: 1) externally imposed by creditors, such as through debt covenants, grantors,
contributors, or laws and regulations of other governments, or 2) imposed by law through constitutional provisions or
enabling legislation. The final section is Unrestricted Net Position, and this represents net position that generally can
be used for any purpose. However, they are not necessarily in a spendable form, such as cash.
The statement of activities demonstrates the degree to which the direct expenses of various functions and activities of
the City are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function
or activity. The City’s policy is to allocate indirect costs to a specific function or segment. Program revenues include 1)
charges to customers or applicants who purchase, use, or directly benefit from goods, services or privileges provided
by a function or activity, and 2) grants and contributions that are restricted to meeting the operational or capital
requirements of a particular function or activity. Taxes and other items that are not properly included among function
or activity revenues are instead reported as general revenues.
Separate financial statements are included for government funds, proprietary funds, and fiduciary funds, even though
fiduciary funds are excluded from the government-wide financial statements. Major individual governmental funds
and major individual enterprise funds are reported in separate columns in the fund financial statements.
C. Measurement Focus, Basis of Accounting and Basis of Presentation
The accounts of the City are organized on the basis of funds, each of which is considered a separate accounting entity.
Each fund is accounted for with a separate set of self-balancing accounts that comprise its assets, liabilities, fund
balance/equity, revenue, and expenditures or expenses, as appropriate. The City resources are allocated to, and
accounted for in, individual funds according to the purpose for which they are spent and how they are controlled.
The basis of accounting refers to the timing of when revenues and expenditures or expenses are recognized in the
accounts and reported in the financial statements.
The government-wide financial statements are reported using the economic resources measurement focus and the
accrual basis of accounting, as are the proprietary and pension trust fund financial statements. Governmental fund
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financial statements are reported using the current financial resources measurement focus and the modified accrual
basis of accounting.
The modified accrual basis of accounting is followed in all governmental and permanent funds of the City. Under the
modified accrual basis of accounting, revenues are recognized when measurable and available. Revenues are generally
considered available if they are collected within the current period or soon enough thereafter (30 days) to pay current
liabilities. For derived tax revenues, such as sales tax and utility business and occupation taxes, revenues are
recognized in the period when the underlying exchange has occurred. For imposed non-exchange taxes, such as
property taxes, revenues are recognized when the use of resources is permitted, or when resources are available.
Grant revenue is recognized in the period in which the expenditure occurs and the eligibility requirements have been
met. Non-exchange transactions, such as contributions, are recognized when the donation eligibility requirements
have been satisfied. Those specific major revenue sources accrued are:
Property Taxes – King County and Pierce County collect property taxes and remit to the City daily or monthly.
December collections by each County, remitted in January, are recognized as revenues in current year even though
received in the subsequent year since they are considered to be measurable and available. Property taxes remaining
uncollected at year-end are reported as “unearned revenue”, since they are not considered to be available.
Sales Tax Revenues – The State of Washington collects all sales taxes. Auburn’s portion is remitted to the City by the
State monthly. The sales tax received in January is recognized as revenue in current year even though received in the
subsequent year because of when the underlying transaction occurred and the resources are considered to be
measurable and available.
Grant Revenues – On cost reimbursement grants, grant revenue is recognized when the eligible expenditure is incurred.
Under the modified accrual basis, expenditures are recorded when the fund liability is incurred, except for the un-
matured interest and principal on general long-term debt, which is recognized when due, and for compensated
absences which are recorded as expenditures when liquidated from expendable available fund resources. Purchases of
capital assets from governmental funds are reported as expenditures during the year incurred and the asset is
capitalized and reported on the government-wide statement of net position. Long-term liabilities, including
compensated absences not currently due and payable, are also reported on the government-wide statement of net
position.
The accrual basis of accounting is followed in all proprietary, agency, and pension trust funds. Under the accrual basis
of accounting, revenues are recognized when earned and expenses are recorded when incurred.
The three broad fund categories and nine fund types presented in this report are described below:
1. Governmental Fund Types
All governmental funds are accounted for on a spending or “financial flow” measurement focus. This means that
only current assets and current liabilities and deferred inflow of resources generally are included on their balance
sheets. Their reported fund balance is considered a measure of “available spendable resources”. Governmental
fund operating statements focus on measuring cash flows rather than net income; they present increases (revenues
and other financing sources) and decreases (expenditures and other financing uses) in net current assets.
a. General fund – This fund is used to account for all financial resources and transactions of the City not
accounted for in another fund, as required. The general fund is always considered a major fund.
b. Special Revenue funds – These funds are used to account for the proceeds of specific revenue sources
(other than major capital projects) that are legally restricted to expenditures for specified purposes. One
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special revenue fund is considered major: the arterial street fund. This fund is supported by the State of
Washington’s motor vehicle fuel tax and by various grants and is used for major street construction.
c. Debt Service funds – These funds account for the accumulation of resources for, and the payment of,
general long-term and special assessment debt principal, interest, and related costs. These funds also
include the local improvement districts (LID) guarantee fund which provides financial security for
outstanding LID bonds. No debt service funds are considered major funds and are reported within the
“Other Governmental Funds”.
d. Capital Projects funds – These funds are used to account for financial resources to be used for the
acquisition or construction of major capital facilities other than those financed by proprietary funds. One
capital project fund is considered major: the capital improvement projects fund. This fund accounts for
major capital acquisitions, and street and parks construction projects.
e. Permanent funds – These funds are used to account for resources that are legally restricted to the extent
that only earnings, and not principal, may be used for purposes of supporting a specific City program. The
city has one permanent fund, Cemetery Endowment.
2. Proprietary Fund Types
Financial statements for proprietary funds use the economic resources measurement focus and the accrual basis of
accounting. This means that all assets and all liabilities (whether current or non-current) associated with their
activity are included on their Statement of Net Position. Under the accrual basis of accounting, revenues are
recognized when earned and expenses are recorded when incurred. The economic resources measurement focus is
applied in the determination of financial position, net income, and cash flow.
Proprietary funds distinguish operating revenues and expenses from non-operating items. Operating revenues and
expenses generally result from providing services and producing and delivering goods in connection with a
proprietary fund’s principal ongoing operations. The principal operating revenue of the City’s utility funds, other
enterprise funds, and internal service funds are charges to customers for sales and services, vehicle and computer
replacement, and insurance. Operating expenses for enterprise funds and internal service funds include the cost of
sales and services, administrative expenses, taxes, and depreciation on capital assets. All revenues and expenses
not meeting this definition are reported as non-operating revenues and expenses, or as capital contributions.
Substantially all proprietary fund operating revenues are used as security for revenue bonds.
GASB Statement No. 62 Codification of Accounting and Financial Reporting Guidance Contained in Pre-
November 30, 1989 FASB and AICPA Pronouncements, provides a codification of private-sector standards of
accounting and financial reporting issued prior to December 1, 1989, to be followed in the financial statements of
proprietary fund types. The City has adopted provisions of GASB Statement No. 62.
a. Enterprise funds – These funds are used to account for services to the general public where all or most of
the costs, including depreciation, are to be financed or recovered from users of such services. Four
enterprise funds are considered major funds. Utilities provided to residents are accounted for in the water
fund, sanitary sewer fund, storm drainage fund, and the solid waste fund.
b. Internal Service funds – These funds are used to account for the financing of goods and services provided
to other funds, departments, or governments on a cost reimbursement basis. The City uses internal service
funds to account for its fleet of vehicles, its maintenance and operation of facilities, the City-wide
provision of computer hardware and software services, the cost of employees affected by an occupational
injury or illness, and its insurance premiums.
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3. Fiduciary Fund Types
Fiduciary funds are used to account for assets held by the City in a trustee capacity or as an agent for individuals,
private organizations, other governments, and/or other funds. These include a Fire Relief and Pension Trust Fund
and an Agency Fund. Each fiduciary fund is classified for accounting measurement purposes as either a
governmental fund or a proprietary fund.
a. Fire Relief and Pension Fund - This fund is accounted for on the accrual basis in essentially the same manner as
proprietary funds since capital management is critical. Based on actuarial recommendations, there are no
employee contributions or employer contributions to the Fire Relief and Pension Plan. Pension benefits are
recognized when due; plan administration costs are also recognized when incurred in this fund.
b. Agency Fund – This fund is custodial in nature on behalf of another individual, entity, or government and
does not involve a measurement of results of operations.
D. Budget and Budgetary Accounting
The City of Auburn budgets in accordance with the Revised Code of Washington (RCW) 35A.33 for the general and
special revenue funds. For governmental funds, there are no substantial differences between the budgetary basis and
generally accepted accounting principles. Budgetary accounts are integrated in fund ledgers for all budgeted funds, but
the financial statements include budgetary comparisons for the biennial budgeted governmental funds only. Budgets
established for proprietary and trust funds are “management budgets”, and are not legally required to be reported
and, as such, are not reported in the CAFR.
The biennial budget is proposed by the Mayor and adopted by the City Council with legal budgetary control at the
fund level; i.e., expenditures and other financing sources may not exceed budgeted appropriations at the fund level.
The Mayor may authorize transfers within funds; however, the City Council must approve by ordinance any
amendments that increase the total for the fund. Any unexpended appropriation balances lapse at the end of the fiscal
year.
The City prepares the biennial budget on the modified accrual basis, which conforms to Generally Accepted
Accounting Principles (GAAP). The CAFR includes budgetary comparisons for those governmental funds with legally
adopted budgets. Budget amounts include the adopted current year budget appropriations and any revisions made
during the year.
State law establishes the budget process and the time limits under which a budget must be developed. The City
follows the procedures outlined below to establish its biennial budget:
a. Sixty days prior to each odd numbered fiscal year, the Mayor submits to the City Council a preliminary budget
for the biennium commencing the following January 1st. The operating budget includes proposed
expenditures and funding sources.
b. Public hearings are conducted at the Auburn City Council Meetings to obtain taxpayer comments.
c. Prior to December 31st, the budget is legally enacted through passage of an ordinance.
d. The final operating budget as adopted is published and distributed after adoption. Copies of the budget are
made available to the public.
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Original Final
Budget Revisions Budget
Governmental Funds
General Fund 62,813,261$ 2,248,364$ 65,061,625$
Total Governmental Funds 62,813,261 2,248,364 65,061,625
Special Revenue Funds:
Local Street 2,600,000$ 770,053$ 3,370,053$
Arterial Street 14,354,730 6,731,789 21,086,519
Hotel/Motel Tax 86,000 20,000 106,000
Arterial Street Preservation 2,109,999 3,660,756 5,770,755
Drug Forfeiture Fund 304,448 - 304,448
Housing and Community Development 440,000 - 440,000
Recreation Trails - - -
Business Improvement Area 55,000 - 55,000
Cumulative Reserve 658,000 - 658,000
Mitigation Fees 3,586,423 371,733 3,958,156
Total Special Revenue Funds 24,194,600 11,554,331 35,748,931
Total Budgeted Funds 87,007,861$ 13,802,695$ 100,810,556$
ORIGINAL AND SUPPLEMENTAL APPROPRIATIONS
E. Assets, Liabilities, and Fund Balance
1. Deposits and Investments
It is the City’s policy to invest all temporary cash surplus. At December 31, 2015, the Washington State Local
Government Investment Pool (LGIP) was holding $102,163,513 in short-term investments. This amount is
classified on the Statement of Net Position as cash and cash equivalents. The interest on these investments is
prorated to the various funds based upon ownership of investments. For purposes of the Statement of Cash
Flows, cash and cash equivalents includes cash on deposit with financial institutions in both demand and time
deposit accounts, and amounts invested in the Local Government Investment Pool, administered by the State
Treasurer’s Office because it is operated in a manner consistent with a Securities and Exchange Commission’s Rule
2a-7 of the Investment Company Act of 1940. The State Finance Committee is the administrator of the statute that
created the pool and adopts appropriate rules. The State Treasurer’s Office is responsible for establishing the
investment policy for the pool and reviews it annually. Any proposed changes are reviewed by the LGIP Advisory
Committee. The terms of the policy are designed to ensure the safety and liquidity of the funds deposited in the
LGIP.
The City, by state law, is authorized to purchase certificates of deposit issued by Washington State depositories
that participate in Washington Public Deposit Protection Commission (WPDPC), U.S. Treasury and Agency
securities, banker’s acceptances, and repurchase agreements. The City purchases repurchase agreements only from
institutions that use authorized securities for collateral. The City of Auburn also has signed a “master repurchase
agreement” with its primary bank, Key Bank.
For purposes of the statement of cash flows, all proprietary fund types and similar trust funds consider all highly
liquid investments (including restricted assets) with maturity of three months or less when purchased to be cash
equivalents.
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Investments are recorded at fair value. Adjustments are made to cost for investments amortized over the period
to maturity in accordance with GASB Statement No. 31. The investment in the state investment pool is valued at
the pool’s share price.
2. Receivables
Taxes receivable consist of property taxes (see Note 4). Accrued interest receivable consists of amounts earned on
notes and contracts at the end of the year.
Customer accounts receivable consist of amounts owed by private individuals or organizations for goods and
services provided. Uncollectible amounts are considered immaterial and the direct write-off method is used.
Special assessments are levied against certain property owners and become liens against the property benefited by
the improvement. Special assessments receivable consist of current assessments, which are due within one year,
delinquent assessments remaining unpaid after the due date, and unearned, uncollected assessments, which have
been levied, but are not due within one year.
Other receivables include utility taxes due from private organizations and customer accounts receivable, which
consist of amounts owed from private individuals or organizations for goods and services, including amounts
owed for which billings have not been prepared. Notes and contracts receivable consist of amounts owed on
open accounts from private individuals or organizations for goods and services rendered.
3. Interfund Receivables and Payables
These accounts include all interfund receivables and payables. A separate schedule of interfund activity is furnished
in Note 5.
4. Amounts Due From Other Governmental Units
This account includes amounts due from other governments for grants, entitlements and charges for services. A
schedule by fund of amounts due from other governmental units is presented in Note 6.
5. Inventories and Prepaid Expenses
Government fund types recognize the cost of inventory items and prepaid expenses (expenses that benefit future
periods) as expenditures in the year of purchase. In governmental funds, materials and supplies remaining at year-
end are immaterial and not included in inventory. In enterprise and internal service funds, inventories are valued
at cost using the weighted average costing method.
6. Restricted Assets
In accordance with the utility bond ordinances, state law, or other agreements, separate restricted assets have been
established. These assets are restricted for specific purposes including the establishment of bond reserve funds,
utility rate stabilization funds, financing the ongoing capital improvement programs of the various utilities,
customer deposits, nonexpendable permanent cemetery endowment and other purposes.
7. Interfund Transactions
During the course of normal operations, the City has numerous transactions between City funds. Interfund
services provided and used, such as buying goods and services, are recorded as revenues in the internal services
funds and expenditures in the paying fund. Transfers between funds are included as “other financing sources or
uses” in governmental fund types and as other items in proprietary fund types.
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8. Capital Assets
Capital assets are recorded at historical cost when known or at estimated historical cost when actual costs are not
known. Infrastructure, such as roads, bridges and water mains, is reported in the applicable government or
business-type activities columns in the government-wide statement of net position. All infrastructure costs have
been calculated and are reported. Government-donated capital assets are stated at their market value on the date
donated.
Major outlays for capital assets and improvements are capitalized as projects are constructed. The costs of normal
maintenance and repairs that do not add to the value of the asset or materially extend asset lives are not
capitalized. For proprietary funds, interest costs incurred to bring certain assets to the condition and location
necessary for their intended use are capitalized as part of the historical cost of acquiring the assets. Additionally, in
situations involving the acquisition of certain assets financed with the proceeds of tax-exempt borrowing, any
interest earned on related interest-bearing investment from such proceeds are offset against the related interest
costs in determining either capitalization rates or limitations on the amount of interest costs to be capitalized.
Capital assets of enterprise and internal service funds are recorded at cost. The capital assets of the airport are
carried at cost and include those acquired with capital contributed by the Federal Government.
Capital assets of all funds are depreciated, and are calculated on the straight-line method using estimated lives as
follows:
Asset
Capitalization
Threshold
Depreciation
Method
Estimated Useful
Life
Building $5,000 Straight-line 20 - 50 years
Other Improvements $5,000 Straight-line 10 - 50 years
Equipment/Machinery $5,000 Straight-line 2 - 20 years
Infrastructure $5,000 Straight-line 25 - 50 years
Utility Plant $5,000 Straight-Line 25 - 50 years
At the inception of capital leases at the government fund reporting level, the net present value of future minimum
lease payments allocable to the capital asset is reflected as expenditures and an “other financing source” of an
equal amount.
9. Pensions
For purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of
resources related to pensions, and pension expense, information about the fiduciary net position of all state
sponsored pension plans and additions to/deductions from those plans’ fiduciary net position have been
determined on the same basis as they are reported by the Washington State Department of Retirement Systems.
For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and
payable in accordance with the benefit terms. Investments are reported at fair value.
10. Deferred Outflows/Inflows of Resources
Deferred outflow of resources is the consumption of net position by the government that is applicab le to a future
reporting period. The deferred amount on special assessments consist of special assessments not due within one
year is reported as deferred outflows of resources in the governmental funds. Deferred inflow of resources is
acquisition of net position by the government that is applicable to a future reporting period. The difference
between the carrying amount of redeemed and/or defeased debt and its reacquisition price is the deferred amount
on refunding and is amortized over the remaining life of the debt, or the life of the new debt, whichever is
shorter. Deferred outflows and deferred inflows of resources related to pensions are reported for differences
between expected and actual experience, changes of assumptions, and differences between projected and actual
returns on pension plan investments.
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11. Compensated Absences
City employees accrue vacation leave at a variable rate based on years of service. In general, employees are
allowed to accumulate vacation leave up to what would be earned in two years.
Unaffiliated employees accrue sick leave at the rate of eight hours per month up to 960 hours. Sick leave
accumulations over 960 hours at year-end are paid at 25%. Sick leave is not paid upon termination except in
some instances upon separation in good standing, where employees hired before 12/31/1984 can be reimbursed at
their current rate for unused sick leave up to a maximum of 960 hours, at a rate based on years of service. The
City’s union contracts have varied sick leave accruals and payout options.
In general, non-exempt employees can accrue up to 80 hours of compensatory time. The City reports
compensated absences as liabilities in the government-wide statement of net position and in proprietary funds.
Vacation, compensatory time, and sick leave are calculated separately for each employee using the rules described
above. The reporting format is in compliance with GASB statement No. 16.
Governmental funds recognize expenditures for vacation, sick, and compensatory time when paid. Proprietary
and pension trust funds recognize the expense and accrue a liability for vacation and sick leave pay as the leave is
earned. All compensated absence liabilities include salary-related payments, where applicable.
12. Unearned Revenues
This account reflects the amounts of taxes and other long-term receivables for which the revenue recognition
criteria have not been met. It also reflects prepayments on accounts and grants received in advance.
13. Fund Balance Components – Proprietary Funds
In proprietary funds, net position is generally restricted in connection with restricted assets or for legal segregation.
These restrictions are identified on the statement of net position of each fund type.
The City holds and administers a Utility System Rate Stabilization Fund. The City may, by ordinance, withdraw
from the Rate Stabilization Fund for inclusion in the net revenue of the Utility System at any time for any current
fiscal year of the Utility System, except that the total amount withdrawn from the Rate Stabilization Fund in any
fiscal year may not exceed the total debt service of the Utility System in that year.
14. Fund Balance Components – Governmental Funds
Fund balance is presented in the governmental fund financial statements and represents the difference between
assets and liabilities reported within the governmental fund.
Beginning with the most restrictive constraints, fund balance amounts are reported in the following categories:
a. Nonspendable fund balance includes items that cannot be spent. This includes activity that is not in a
spendable form (investments, prepaid amounts, long-term portion of loans/notes receivable, or
property held for resale unless the proceeds are restricted, committed or assigned) and activity that is
legally or contractually required to remain intact.
b. Restricted fund balance is externally (outside the City) enforceable limitations imposed by creditors,
grantors, contributors, laws and regulations of other governments, or laws through constitutional
provisions or enabling legislation.
c. Committed fund balance is self-imposed limitations imposed at the highest level of decision making
authority, namely, Mayor and City Council. Mayor and City Council approval by ordinance is
required to commit, modify or rescind resources.
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d. Assigned fund balance includes amounts that are constrained by the City’s intent to be used for a
specific purpose, but are neither restricted nor committed. It is the City’s policy that the Finance
Director shall have the authority to assign amounts of fund balance to a specific purpose; however,
before expenditure, amounts must be appropriated by the City Council which is often adopted by City
Council in the biennial budget ordinance. For governmental funds, other than the General Fund, this is
the residual amount within the fund that is not restricted or committed.
e. Unassigned fund balance is the residual amount of the General Fund not included in the four categories
described above. Also, any deficit fund balances within the other governmental fund types are
reported as unassigned.
When expenditure is incurred for purposes for which both restricted and unrestricted resources are available, it is
the City’s policy to use restricted resources first. When expenditures are incurred for purposes, for which
unrestricted (committed, assigned, and unassigned) resources are available, and amounts in any of these
unrestricted classifications could be used, it is the City’s policy to spend committed resources first, then assigned
and unassigned, in that order.
The following shows the composition of the fund balance of the governmental funds for the fiscal year ended
December 31, 2015:
Arterial Capital Other Total
General Street Improvement Governmental Governmental
Fund Fund Fund Funds Funds
Nonspendable
Prepaids 127$ -$ -$ -$ 127$
Cemetery Endowment - - - 1,585,707 1,585,707
Total Nonspendable 127 - - 1,585,707 1,585,834
Restricted
Major Street Construction - 2,405,821 - - 2,405,821
REET 1 Allowable Projects - - 3,842,606 - 3,842,606
REET 2 Allowable Projects 4,326,374 - 4,326,374
Arterial Street Presevation Fund 76,680 76,680
Parks and Trails Construction Projects - - - 663,940 663,940
City Tourism Promotion - - - 201,293 201,293
Drug Investigation and Enforcement - - - 443,161 443,161
Community Development Block Grant Program - - - 44,904 44,904
Recreational Trail Development - - - 42,466 42,466
Downtown Business Area Improvements - - - 48,395 48,395
Street and Fire Service Mitigation Fees - - - 5,776,255 5,776,255
Debt Service - - - 13,278 13,278
Total Restricted - 2,405,821 8,168,980 7,310,372 17,885,173
Committed
Local Street Improvements (Save our Streets)- - - 1,927,047 1,927,047
Aterial Street Preservation - - - 1,731,672 1,731,672
Total Committed - - - 3,658,719 3,658,719
Assigned
Appropriations Over Estimated Revenue 7,284,159 - - - 7,284,159
Arterial Street Presevation Fund 3,822,002 135,512 3,957,514
Drug Investigation and Enforcement - - - 663 663
Recreation Trail Development - - - 63 63
Downtown Business Area Improvements - - - 60 60
Local Street Improvements - - - 153,643 153,643
School Administration Fees - - - 78,115 78,115
Cemetery Capital Enhancement and Maintenance - - - 100,573 100,573
Downtown Infrastructure Improvements - - - 464,551 464,551
Total Assigned 7,284,159 - 3,822,002 933,180 12,039,341
Unassigned
Unassigned 20,267,776 - - - 20,267,776
Total Unassigned 20,267,776 - - - 20,267,776
Total Fund Balances 27,552,062$ 2,405,821$ 11,990,982$ 13,487,978$ 55,436,843$
Governmental Fund Balances
December 31, 2015
Major
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F. Revenues, Expenditures and Expenses
Under the modified accrual basis of accounting:
• Charges for services, interest on investments, and rents generally are considered measurable and available
when earned in governmental funds.
• Taxes and federal or state entitlements or shared revenues that have been collected but not remitted by an
intermediary collection agency to the City are considered measurable and available.
• Special assessments are considered measurable and available when they become due.
• Grants are considered measurable and available to the extent that expenditures have been made. Other
intergovernmental revenues are considered measurable and available when earned.
• Interfund revenues for goods and services are considered measurable and available when earned.
• Proceeds from sale of capital assets are recognized as other financing sources.
• Revenues from taxpayer-assessed taxes (i.e., sales tax), net of estimated refunds, are recognized when
measurable and available to finance expenditures of the current period.
• All other revenues are either not measurable or considered not available until collected.
• Expenditures are generally recognized when incurred, except for principal and interest on general long-term
debt, which are reported as expenditures when paid, and compensated absences, which are reported as
expenditures when liquidated from expendable available financial resources.
Under the accrual basis of accounting:
• Revenues are recognized when earned and expenses are recognized when incurred.
• Contributions of capital in proprietary fund financial statements arise from internal and external contributions
of capital assets or from grants or outside contributions of resources restricted to capital acquisition and
construction.
Transfers between government and business-type activities on the government-wide statement of activities are
reported as general revenues. Transfers between funds reported in the governmental activities column are eliminated,
as are transfers between funds reported in the business-type activities column.
G. Estimates
The preparation of the financial statements in conformity with accounting principles generally accepted in the United
States requires management to make estimates and assumptions that affect the amounts reported in the financial
statements and accompanying notes. Actual results may differ from those estimates.
NOTE 2 – STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY
There have been no material violations of finance-related legal or contractual provisions, and there have been no
expenditures exceeding legal appropriations in any of the funds of the City of Auburn.
NOTE 3 – DEPOSITS AND INVESTMENTS
At December 31, 2015, the carrying amount of the City’s cash demand deposits with Key Bank totaled $12,051,664
while the bank balance was $12,615,734. In addition, there was $17,300 in petty cash ($10,000 in the Drug Forfeiture
Fund to be used for enforcements purposes, $7,300 in various petty cash and cashier change funds).
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Custodial Credit Risk. Custodial credit risk is the risk associated with the failure of a depository financial institution. In
the event of a depository financial institution’s failure, it is the risk that the City would not be able to recover its
deposits or collateralized securities that are in the possession of the outside parties.
The City minimizes custodial credit risk by following the restrictions set forth in state law.
The Federal Deposit Insurance Corporation (FDIC) insures the City’s deposits up to $250,000. The Washington Public
Deposit Protection Commission (WPDPC) (established under Chapter 39.58 of the Revised Code of Washington)
constitutes a multiple financial institution collateral pool. Pledged securities under the WPDPC collateral pool are held
by the WPDPC’s agent in the name of the collateral pool.
As required by State law, all investments of the City’s funds are obligations of the U.S. Government, or deposits with
Washington State banks that participate in the WPDPC. Pension and permanent funds are not subject to these
limitations. All temporary investments are stated at cost. Other investments are shown on the statement of net
position at fair value. Investments that were not at par value (cost) as of December 31, 2015 are reported at fair
value. The fair value of the position in the state investment pool is the same as the value of shares held by the City in
the pool at amortized cost because it is operated in a manner consistent with the Securities and Exchange
Commission’s Rule 2a-7 of the Investment Company Act of 1940.
During 2015, the net decrease in the fair value of investments being held for more than one year is $5,297 at year-
end.
As of December 31, 2015, the City had the following investments and maturities:
Fair Less than 1 to 2
Investment Type Value 1 year years
State investment pool 102,163,513$ 102,163,513$ -$
US Treasuries 71,695 71,695 -
US Agencies 237,310 - 237,310
102,472,518$ 102,235,208$ 237,310$
Reconciliation to government-
wide statement of net position:
Total investments above 102,472,518$
Plus: cash in checking 12,051,664
Plus: petty cash 17,300
Less: cash investments in fiduciary funds (2,929,315)
Total cash and investments, government-
wide statement of net position 111,612,167$
Schedule of Investments by Maturities
As of December 31, 2015
Investment maturities
Governmental Business-Type
Activities Activities Total
Cash and Cash Equivalents 52,457,139$ 36,626,402$ 89,083,541$
Investments 237,310 - 237,310
Temporarily Restricted:
Cash and Cash Equivalents 12,320,259 8,385,350 20,705,609
Permanently Restricted:
Cash and Cash Equivalents 1,585,707 - 1,585,707
66,600,415$ 45,011,752$ 111,612,167$
Reconciliation of Cash and Investments
Government-Wide Statement of Net Position
As of December 31, 2015
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Interest Rate Risk
Interest rate risk is the risk that changes in interest rates of debt investments will adversely affect the fair value of an
investment. As a means of limiting its exposure to fair value losses arising from rising interest rates, the City’s
investment policy limits the maximum maturity of an investment to not greater than three years, unless an investment
is matched to an anticipated future cash flow. The segmented time distribution presented in the schedule of
investments by maturity above indicates how the City has managed its interest rate risk.
Credit Risk
Credit risk is the risk that an issuer or other counterparty to an investment will not fulfill its obligations. State law and
the City’s investment policy limits the instruments in which the City may invest. These include:
1. United States bonds
2. United States certificates of indebtedness
3. Bonds or warrants of the State of Washington
4. General obligation or utility revenue bonds or warrants of its own or of any other city or town in the State
5. Its own bonds or warrants of a local improvement district which are within the protection of the local
improvement guaranty fund
6. Savings or time accounts in designated public depositories
7. Certificates, notes or bonds of United States agencies, or corporations wholly owned by the United States.
8. Repurchase agreements
9. Banker’s acceptances
10. Federal Home Loan Bank notes and bonds, Federal Land Bank bonds, Federal National Mortgage Association
notes, debentures and guaranteed certificates of participation, or obligations of any other government
sponsored corporation whose obligations are or may be eligible as collateral for advances to member banks as
determined by the Board of Governors of the Federal Reserve System or any portion thereof in investment
deposits as defined in RCW 39.8.010 secured by collateral in accordance with RCW 39.58
11. Interim financing warrants of local improvement districts
12. State Local Government Investment Pool
As of December 31, 2015, the City had investments in a limited number of investment instruments as follows:
• U.S. Treasuries
• State Local Government Investment Pool
• Lakehaven Utility District (WA) Bonds
With the exception of the State Local Government Investment Pool which is not rated and Lakehaven Utility District
(WA) Bonds which has a Moody’s rating of Aa2, all other investments above carried a rating of Aaa by Moody’s
rating service at December 31, 2015.
Concentration of Credit Risk
Concentration of credit risk is the risk of loss attributed to the magnitude of an investment in a single issuer. The City
diversifies its investments by security type and institution. The investment policy states: “With the exception of US
Treasury securities and the State Investment Pool, no more than 20% of the City’s total investment portf olio will be
invested in a single security type or with a single financial institution”.
Other information
Effective 2002, the City has established arrangements with Bank of New York for safekeeping of all investments.
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The following is a schedule of investments by fund type:
State
Investment U.S.
Pool Securities Total
General Fund -$ 237,310$ 237,310$
Fiduciary Funds - 71,695 71,695
Treasurer's Residual Funds 102,163,513 - 102,163,513
Total 102,163,513 309,005$ 102,472,518$
As of December 31, 2015
Schedule of Investments by Fund Category and Investment Type
NOTE 4 – PROPERTY TAXES
Property taxes received during tax year 2015 were $17,337,108 including collection of prior year delinquent
assessments. Property taxes assessed for collection in tax year 2015 were based on a regular tax levy of $2.17 per
$1,000 on a total 2014 assessed value of $8,238,289,417.
For levy year 2015, to be received in 2016, the City’s regular tax levy is $2.08 per $1,000 on a 2015 assessed valuation
of $8,826,618,865, as of December 31, 2015, for a total regular levy of $18,017,836. State law provides that debt
cannot be incurred in excess of the following percentages of the taxable property of the City.
1.50% of assessed value without a vote of the people
2.50% of assessed value with a vote of the people
The City has additional authority to incur the following debt as a percentage of total valuation.
2.50% of assessed value with a vote of the people, indebtedness is for utilities
2.50% of assessed value with a vote of the people, indebtedness is for parks, or open space development
At December 31, 2015, the debt limits for the City were as follows:
For Parks or
Without General For Open Space
a Vote Purposes Utilities Development Total
Item 1.50%1.00%2.50%2.50%Capacity
Legal Limit 132,399,283$ 88,266,189$ 220,665,472$ 220,665,472$ 661,996,416$
Outstanding indebtedness (59,408,629) - - - (59,408,629)
Margin available 72,990,654$ 88,266,189$ 220,665,472$ 220,665,472$ 602,587,787$
With a Vote
The County Treasurer acts as an agent to collect property taxes levied in the county for all taxing authorities. Taxes
are levied annually on January 1 on property values listed as of the prior August 31. The County assesses property at
100% of fair value. A revaluation of all property is required at least once every four years and a physical inspection is
required at least once every six years.
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Property taxes levied by the County Assessor and collected by the County Treasurer become a lien on the first day of
the levy year and may be paid in two installments if the total amount exceeds $10. The first half of real property taxes
is due on April 30 and the balance is due October 31. Delinquent taxes bear interest at the rate of 12% and are subject
to additional penalties if not paid as scheduled.
At year-end, property taxes are recorded as a receivable with the portion not expected to be collected within 30 days
after the current period are reported as other unavailable revenue in the deferred inflow of resources section of the
governmental funds financial statements. During the year, property tax revenues are recognized when cash is
received.
1. The Washington State Constitution limits the total regular property taxes to 1% of assessed valuation or $10 per
$1,000 of value. If the taxes of all districts exceed this amount, each is proportionately reduced until the total is at
or below the 1% limit.
2. Washington State law in RCW 84.55.010 limits the annual growth of regular property taxes to the lesser of 1% or
the rate of inflation. With a vote of the majority of the voters within a taxing district, the 1% levy limitation can
be “lifted” and additional taxes may be levied
3. The City may voluntarily levy taxes below the legal limit.
Special levies approved by the voters are not subject to the above limitations.
Property taxes are recorded as receivable and offset by an unearned revenue account when levied. Since state law
allows for the sale of property for failure to pay taxes, no estimate of uncollectible taxes is made.
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NOTE 5 – INTERFUND ACTIVITY
Transfers are legally authorized transfers of resources from a fund receiving revenue to the fund through which
resources are to be expended. The principal purposes for interfund transfers include interfund subsidies, transfers into
capital project and debt service funds and transfers into internal service funds for interfund facility, information services
and equipment rental services. Interfund transfers for the year ended December 31, 2015 were as follows:
Funds Transfer In Transfer Out
Governmental funds:
General 149,197$ 3,528,044$
General - Cumulative Reserve 2,800,000 430,106
Total general fund 2,949,197 3,958,150
Special revenue funds:
Arterial Streets 694,348 378
Local Streets 150,000 378
Arterial Street Preservation 600,000 32,786
Mitigation Fees - 742,463
Total special revenue funds 1,444,348 776,005
Debt service funds:
1998 Library GO 279,462 -
2010 A&B Annex 1,318,242 -
2010 C&D Local Revitalization 216,895 -
Golf Debt Service 412,204 -
LID Guarantee 449 23,443
LID 250 - 449
Total debt service funds 2,227,252 23,892
Capital projects funds:
Municipal Park Construction 464,866 -
Capital Improvements 15,167 1,880,579
Total capital projects funds 480,033 1,880,579
Proprietary funds:
Water - 203,642
Sewer - 190,371
Storm Drainage 526,059 198,781
Cemetery 30,000 -
Total proprietary funds 556,059 592,794
Internal service funds:
Facilities - 659,121
Innovation & Technology 102,807 -
Equipment Rental 398,112 237,267
Total internal service funds 500,919 896,388
Permanent funds:
Cemetery Endowed Care - 30,000
Total 8,157,808$ 8,157,808$
All transfers are considered routine.
Transfers
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Loans between funds are classified as interfund receivable and payable. Interfund Loans do not affect total fund
equity.
Balance Balance
Due From Due To 1/1/2015 New Loans Repayments 12/31/2015
Airport Fund Capital Improvement 200,000$ -$ 16,605$ 183,395$
Parks Construction General fund -$ 400,000$ -$ 400,000$
Total interfund loans 200,000$ 400,000$ 16,605$ 583,395$
All interfund loans are considered short-term cash loans.
*The purpose of the interfund loan to The Airport Fund is to cover the cost of The Auburn Municipal T Hanger Enclosure Project.
*The purpose of the interfund loan to the Municipal Parks Construction Fund (a Grant Sustained Fund), is to cover authorized expenditures
while the city waits for reimbursement of federal, state, and local grant monies.
Interfund Loans
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NOTE 6 – DUE FROM OTHER GOVERNMENTAL UNITS
As of December 31, 2015, the City had receivables due from other governmental units as follows:
General Fund:
Okanogan County -Disaster Response 10,044
King Conservation District -Farmer's Market 10,293
King County District Court 612,897
King County Public Health -Rampart Grant 3,953
King County -Real Estate Excise Taxes 447,125
King County Sheriff's - Registered Sex Offender Grant 7,928
Pierce County - Real Estate Excise Taxes 15,367
Muckleshoot Indian Tribe 152,315
Seattle Police Dept -US Department of Justice JAG Grant 36,964
US Department of Justice -COPS Hiring Program 72,917
WA Auto Theft Prevention Authority - Auto Theft Prevention Grant 46,421
WA State Department of Ecology -Area-wide Redevelopment Plan 22,409
WA State Military Department - EMPG Grant 16,663
WA State Treasurer - Sales Taxes 1,346,251
Total General Fund 2,801,547
Arterial Street Fund:
WA State Transportation Improvement Board - Arterial Street Imp.1,213,265
Muckleshoot Indian Tribe 158,855
WA Dept. of Transportation - Arterial street imp.786,851
Total Arterial Street Fund 2,158,971
Arterial Street Preservation Fund:
WA Dept. of Transportation - Arterial street imp.17,615
Drug Forfeiture Fund:
Pierce County Sheriff's Department -TNET 9,752
Housing & Community Development:
U.S. Dept. of Housing - Community Development Block Grant 82,231
Municipal Park Construction:
King Conservation District 20,000
King County Flood Control District 273,390
WA State Department of Commerce 1,276,277
WA State Recreation & Conservation Office 73,146
Total Municipal Park Construction Fund 1,642,813
General Government Capital Improvements:
KC Flood Control District 83,728
Pierce County - Real Estate Excise Taxes 18,872
102,600
Water Fund:
Okanogan County -Disaster Response 1,495
Sewer Fund:
Okanogan County -Disaster Response 1,451
Storm Fund:
WA State Department of Ecology 71,979
City of Pacific 300
King Conservation District 20,000
King County Flood Control District 20,949
Lakehaven Utility District 44,196
Okanogan County -Disaster Response 1,451
Total Storm Drainage Fund 158,875
Solid Waste Fund:
King County - Local hazardous waste management grant 20,302
King County - Waste reduction and recycling grant 31,381
Total Solid Waste fund 51,683
Airport Fund
Federal Aviation Administration 41,215
WA Department of Transportation -Aviation Division 2,290
Total Airport fund 43,505
Information Services Fund:
City of Pacific 3,614
VRFA 2,024
Total Information Services fund 5,638
Equipment Rental Fund:
Okanogan County -Disaster Response 138
Total 7,078,314
Reconciliation to government-wide statement of net assets:
Total above due from other governmental units 7,078,314
Amount due to fiduciary fund -
Total due from other governmental units,
7,078,314
Due from Other Governmental Units
government-wide statement of net assets
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NOTE 7 – CAPITAL ASSETS AND DEPRECIATION
Capital asset activity for the year ended December 31, 2015 is as follows:
Balance Decreases/Balance
1/1/15 Increases Adjustments 12/31/15
Governmental activities:
Capital assets, not being depreciated:
Land 107,948,445$ 341,320$ -$ 108,289,765$
Construction in progress 9,017,708 9,554,415 (8,982,981) 9,589,142
Total capital assets, not being depreciated 116,966,153 9,895,735 (8,982,981) 117,878,907
Capital assets, being depreciated:
Buildings 64,959,775 386,877 - 65,346,652
Improvements other than buildings 21,990,489 169,049 - 22,159,538
Machinery and equipment 23,970,337 2,078,712 (570,764) 25,478,285
Intangibles 1,095,684 - - 1,095,684
Infrastructure 331,854,616 25,431,153 - 357,285,769
Total capital assets being depreciated 443,870,901 28,065,791 (570,764) 471,365,928
Less: accumulated depreciation for:
Buildings (15,650,395) (1,353,164) - (17,003,559)
Improvements other than buildings (13,197,527) (777,211) - (13,974,738)
Machinery and equipment (17,024,263) (1,647,447) 466,987 (18,204,723)
Intangibles (594,028) (154,563) - (748,591)
Infrastructure (130,695,021) (12,760,769) - (143,455,790)
Total accumulated depreciation (177,161,234) (16,693,154) 466,987 (193,387,401)
Total capital assets, being depreciated, net 266,709,667 11,372,637 (103,777) 277,978,527
Governmental activities capital assets, net 383,675,820$ 21,268,372$ (9,086,758)$ 395,857,434$
Business-type activities:
Capital assets, not being depreciated:
Land 12,276,187$ 250,000$ -$ 12,526,187$
Water Rights 5,196,600 - - 5,196,600
Construction in progress 9,766,126 17,082,804 (9,982,039) 16,866,891
Total capital assets, not being depreciated 27,238,913 17,332,804 (9,982,039) 34,589,678
Capital assets, being depreciated:
Buildings 5,741,934 - - 5,741,934
Improvements other than buildings 274,592,668 14,459,816 - 289,052,484
Machinery and equipment 2,454,604 25,901 - 2,480,505
Total capital assets being depreciated 282,789,206 14,485,717 - 297,274,923
Less: accumulated depreciation for:
Buildings (3,694,929) (126,432) - (3,821,361)
Improvements other than buildings (93,451,201) (7,099,896) - (100,551,097)
Machinery and equipment (2,155,059) (29,370) - (2,184,429)
Total accumulated depreciation (99,301,189) (7,255,698) - (106,556,887)
Total capital assets, being depreciated, net 183,488,017 7,230,019 - 190,718,036
Business-type activities capital assets, net 210,726,930$ 24,562,823$ (9,982,039)$ 225,307,714$
Schedule of Capital Asset Activity
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Depreciation/amortization expense was charged to functions/programs of the City as follows:
Governmental activities:
General government 1,023,689$
Public safety 403,821
Transportation 12,408,899
Culture and recreation 1,304,780
Capital assets held by the City's internal service funds are charged to the various
functions based on their usage of the assets 1,551,965
Total depreciation/amortization expense - governmental activities 16,693,154$
Business-type activities:
Water 2,934,694$
Sanitary sewer 2,120,150
Storm water 1,663,208
Solid waste 18,819
Airport 468,031
Cemetery 50,796
Total depreciation expense - business-type activities 7,255,698$
The 2015 total interest cost incurred for business-type activities was $1,428,387 of which $1,037,940 was charged to
expense and $390,447 capitalized.
NOTE 8 – CAPITAL LEASE OBLIGATION
The City has the following capital leases:
On January 1, 2007 the City entered into a capital lease agreement for the Auburn Avenue Theater facility for a 15
year term. The intent is for the City’s Parks, Arts and Recreation department to offer performances to the public, as
well as make the facility available for short-term rentals.
On July 15, 2015 the City entered into a 5 year term capital lease agreement to finance the purchase of a John Deere
Excavator. The lease agreement qualifies as a capital lease for accounting purposes.
The assets acquired through capital leases are as follows:
Governmental
Asset Activities
Auburn Avenue Theater 749,110$
John Deere Excavator 204,710
Less: Accumulated Depreciation (444,557)
Total Assets Acquired Through Capital Leases 509,263$
Assets Acquired Through Capital Leases
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The future minimum lease obligation and the net present value of these minimum lease payments as of December 31,
2015, were as follows:
NOTE 9 – LONG-TERM LIABILITIES
General Obligation Bonds are direct obligations of the City for which its full faith and credit are pledged. Debt service
for voter-approved issues, of which the City has none, would be funded by special property tax levies. Debt service
for City Council authorized bonds, also called councilmanic bonds, is funded from regular property taxes or general
revenues, and is generally paid from debt service funds but can be paid from other designated funds.
General Obligation Bonds outstanding at year-end are as follows:
• 2005 Limited Tax General Obligation refunding bonds were issued to partially advance refund the 1999 Limited
Tax Obligation bonds. 1999 Limited Tax General Obligation bonds were issued for construction of hangars at the
Auburn Municipal Airport. The 2005 Limited Tax General Obligation refunding bonds mature in 2019 and are
paid from the Airport fund.
• 2006 Limited Tax General Obligation bonds were issued to fund improvements at the Auburn Golf Course
including a pro shop, clubhouse and related facilities, as well as construction of a columbarium at the Mountain
View Cemetery. During 2014, the outstanding bonds which were issued to fund improvements to the Auburn
Golf Course were transferred from the Golf Fund and are now included in the governmental activities. In 2015,
the outstanding bonds which were issued to construct a columbarium at the Mountain View Cemetery were
transferred from the Cemetery Fund and are now included in the governmental activities. The removal of debt
from the enterprise fund was treated as a capital contribution.
• 2006 Limited Tax General Obligation (taxable) bonds were issued to construct and equip restaurant, banquet and
related facilities for a restaurant facility to be located at the Auburn Golf Course clubhouse. The outstanding
bonds were transferred from the Golf Fund and are now included in the governmental activities. The removal of
debt from the enterprise fund was treated as a capital contribution.
• 2010A Limited Tax General Obligation Improvement and Refunding bonds were issued to provide funds with
which to (i) pay a portion of the costs of acquisition of certain condominium units to provide city office space
near City Hall (City Hall Annex) in lieu of the City Hall Annex lease and (ii) to partially advance refund the 1998
Limited Tax General Obligation bonds. The 1998 Limited General Obligation bonds were issued for construction
of a library to be owned and operated by the King County Rural Library District.
The City advance refunded the 1998 Limited Tax General Obligation bonds in 2010. The debt is considered
extinguished in an in-substance defeasance and, accordingly is not reflected in the accompanying financial
statements. The remaining balance of outstanding defeased debt as of December 31, 2015 is $780,000.
• 2010B Limited Tax General Obligation Bonds (Taxable Build America Bonds – Direct Payment) bonds were issued
to provide funds with which to pay a portion of the costs of acquisition of certain condominium units to provide
city office space near City Hall (City Hall Annex) in lieu of the City Hall Annex lease.
Theater Excavator Total
2016 77,699$ 44,140$ 121,839$
2017 77,699 44,140 121,839
2018 77,699 44,140 121,839
2019 77,699 44,140 121,839
2020 77,699 22,480 100,179
2021 77,504 - 77,504
Total minimum leas e payments 465,999 199,040 665,039
Les s : Amounts repres enting interes t (81,818) (13,448) (95,266)
Present value of future minimum lease payments 384,181$ 185,592$ 569,773$
Lease Payable
Schedule of Future Minimum Lease Payments
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• 2010C Limited Tax General Obligation Bonds were issued to provide funds with which to pay portion of the
downtown infrastructure improvements in the City’s revitalization area.
• 2010D Limited Tax General Obligation Bonds (Taxable Build America Bonds – Direct Payment) bonds were issued
to provide funds with which to pay portion of the downtown infrastructure improvements in the City’s
revitalization area.
Revenue Bonds are payable from water, sewer and storm drainage utility revenues generated by those enterprise
funds.
State of Washington Public Works Trust Fund Loans are a direct responsibility of the City. Auburn currently has eight
outstanding loans with a remaining total balance of $11,650,644. Six of the loans are for water and sewer
construction projects. The loans are being repaid from water and sewer fund revenues over a 20-year period that
begins upon each project completion (PWTF 1999, PWTF 2001, PWTF 2002, PWTF 2004, PWTF 2006 & PWTF
2013). The other two loans are for arterial street improvements and are being repaid from arterial street fund revenues
over a 20-year period that began in 2009 upon project completion (PWTF 2008) and over a 29-year period that
began in 2013 upon project completion (PWTF 2012).
Compensated Absences are paid by those funds that have employees. These are mostly payable by the General fund
and enterprise funds.
The following schedules summarize the long-term debt transactions of the City for the year ended December 31, 2015.
The first table summarizes all debt transactions for Auburn, while the second provides detailed information on all long-
term debt. Additional schedules reflect total annual debt service requirements to maturity and the reconciliation of
debt by fund type.
General
Obligation (1)Utility
Employee
Leave Benefit
Other Post
Employment
Benefits
Pension
Liability Premium
Due To Other
Governments Total
Long-term liabilities payable 12/31/14 36,754,241$ 38,954,538$ 2,463,411$ 6,211,464$ -$ 1,578,439$ 25,137,800$ 111,099,893$
Added 695,174 850,402 2,259,690 1,945,816 18,726,785 9,226 - 24,487,093
Retired (2,132,845) (2,231,093) (2,044,356) (909,657) - (136,417) (860,150) (8,314,518)
Long-term liabilities payable 12/31/15 35,316,570$ 37,573,847$ 2,678,745$ 7,247,623$ 18,726,785$ 1,451,248$ 24,277,650$ 127,272,468$
(1) Includes capital leases
CHANGES IN LONG-TERM LIABILITES SUMMARY
Year Principal Interest Principal Interest Principal Interest Principal (1)Interest
2016 2,099,950 3,219,326 93,137 24,060 2,523,493 1,534,878 4,716,580 4,778,264
2017 2,189,400 3,127,140 97,991 20,345 2,568,493 1,481,621 4,855,884 4,629,106
2018 2,266,100 3,027,605 103,130 16,374 2,618,493 1,427,652 4,987,723 4,471,631
2019 2,069,350 2,932,873 108,571 12,129 2,673,493 1,366,533 4,851,414 4,311,535
2020 1,949,150 2,846,490 92,127 7,591 2,551,124 1,294,302 4,592,401 4,148,383
2021-2025 10,947,950 13,172,939 74,817 2,741 12,626,091 5,178,730 23,648,858 18,354,410
2026-2030 11,063,100 10,524,179 - - 12,997,962 2,375,073 24,061,062 12,899,252
2031-2035 13,071,050 7,018,605 - - 2,399,537 124,560 15,470,587 7,143,165
2036-2040 9,281,600 2,854,345 - - 584,965 11,700 9,866,565 2,866,045
2041-2045 - - - - 116,993 585 116,993 585
Totals 54,937,650$ 48,723,502$ 569,773$ 83,240$ 41,660,644$ 14,795,634$ 97,168,067$ 63,602,376$
(1)97,168,067$ Principal debt service requirements to maturity
2,678,745 Employee Leave Benefits
7,247,623 Other Post Employment Benefits
18,726,785 Pension Liability
1,451,248 Premium
127,272,468$ Long Term Liabilities 12/31/2015
Obligation Bonds Obligation Bonds/Loans Long-Term Debt
DEBT SERVICE REQUIREMENT TO MATURITY
General Capital Lease Utility Total
City of Auburn: 2015 CAFR Notes to the Financial Statements
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Interest Maturity Original Principal Balance Balance Due Within
Issue Name Rates Date Amount(2) Installments 12/31/14 Additions Reductions 12/31/15 One Year
GOVERNMENTAL DEBT
General Obligation Bonds:
GO bond 2006-Golf/Cemetery (1)(3)4.25-5.00%12/1/2025 2,784,536$ $5,000 - $395,000 2,784,536$ 490,464$ (5,000)$ 3,270,000$ 265,000$
GO bond 2006 taxable-Golf 5.40-5.52%12/1/2015 1,885,000 $45,000 - $245,000 245,000 - (245,000) - -
LTGO 2010A (1)2.00-4.50%12/1/2018 4,385,000 $235,000 - $720,000 1,015,000 - (235,000) 780,000 250,000
LTGO 2010B (1)3.27-6.24%12/1/2039 20,365,000 $535,000 - $1,240,000 20,365,000 - (535,000) 19,830,000 545,000
LTGO 2010D (1)3.27-6.19%12/1/2034 6,320,000 $220,000 - $445,000 6,320,000 - (220,000) 6,100,000 225,000
Total General Obligation Bonds 35,739,536 30,729,536 490,464 (1,240,000) 29,980,000 1,285,000
Capital Leases:
Auburn Avenue Theater 6.68%12/31/2021 695,504 $4,078 - $6,429 435,068 - (50,887) 384,181 54,030
John Deere Financial Excavator Lease 3.00%7/15/2020 204,710 $3,678 - 204,710 (19,118) 185,592 39,107
Total Capital Leases 435,068 204,710 (70,005) 569,773 93,137
Employee Leave Benefits:
Compensated absences 1,892,260 1,734,465 (1,570,606) 2,056,119 1,609,150
Other Post Employment Benefits:
LEOFF 1 6,211,464 1,945,816 (909,657) 7,247,623 -
Pension Liability - 12,828,199 - 12,828,199 -
Public Works Trust Fund Loans:
PWTF 2008 0.50%7/1/2028 1,527,273 $80,383 1,125,359 - (80,383) 1,044,976 80,383
PWTF 2012 0.50%6/1/2041 3,284,857 $116,993 3,158,814 - (116,993) 3,041,821 116,993
Total Public Works Trust Fund Loans 4,812,130 4,284,173 - (197,376) 4,086,797 197,376
Premium Related to Debt 168,882 9,226 (34,726) 143,382 -
Total Governmental 41,247,170$ 43,721,383$ 17,212,880$ (4,022,370)$ 56,911,893$ 3,184,663$
BUSINESS-TYPE DEBT
General Obligation Bonds
GO refunding bond 2005 (1)4.00-4.50%12/1/2019 1,375,000$ $10,000 - $190,000 815,000$ -$ (135,000)$ 680,000$ 150,000$
GO bond 2006-Golf/Cemetery (1)(3)4.25-5.00%12/1/2025 3,275,000 $5,000 - $395,000 490,464 - (490,464) - -
Total General Obligation Bonds 4,650,000 1,305,464 - (625,464) 680,000 150,000
Revenue Bonds:
Utility sys refunding bonds 2005 (1)3.00-4.75%11/1/2016 2,765,000 $45,000 - $355,000 695,000 - (340,000) 355,000 355,000
Utility sys bonds 2010 (1)3.00-6.40%12/1/2030 21,295,000 $575,000 - $1,720,000 20,130,000 - (605,000) 19,525,000 630,000
Utility sys bonds 2013 (1)0.38-4.00%12/1/2032 11,415,000 $335,000 - $785,000 10,605,000 - (475,000) 10,130,000 480,000
Total Revenue Bonds 35,475,000 31,430,000 - (1,420,000) 30,010,000 1,465,000
Employee Leave Benefits:
Compensated absences 571,151 525,225 (473,750) 622,626 487,276
Pension Liability - 5,898,586 - 5,898,586 -
Public Works Trust Fund Loans:
PWTF 1999 1.00%7/1/2019 3,465,000 $182,368 911,842 - (182,368) 729,474 182,368
PWTF 2001 0.50%7/1/2021 4,290,405 $227,086 1,589,599 - (227,086) 1,362,513 227,086
PWTF 2002 1.00%7/1/2022 641,250 $26,114 208,916 - (26,114) 182,802 26,115
PWTF 2004 0.50%7/1/2024 2,049,036 $107,844 1,078,440 - (107,844) 970,596 107,844
PWTF 2006 0.50%7/1/2026 3,325,000 $180,418 2,165,015 - (180,418) 1,984,597 180,418
PWTF 2013 2.00%6/1/2032 1,654,561 $87,263 1,570,726 850,402 (87,263) 2,333,865 137,286
Total Public Works Trust Fund Loans 15,425,252 7,524,538 850,402 (811,093) 7,563,847 861,117
Premium Related to Debt 1,409,557 - (101,691) 1,307,866 -
Total Proprietary 55,550,252$ 42,240,710$ 7,274,213$ (3,431,998)$ 46,082,925$ 2,963,393$
Total All Funds 96,797,422$ 85,962,093$ 24,487,093$ (7,454,368)$ 102,994,818$ 6,148,056$
(1) Subject to federal arbitrage compliance rules.
(2) The original amount is the amount authorized and issued with exception of the Utility System Bonds 2013 in which the authorized amount was $13,000,000 and the issued amount
was $11,415,000.
(3) The outstanding bonds which were issued to fund improvements at the Cemetery were transferred from the Cemetery Fund and are now included in the governmental activities.
CHANGES IN LONG-TERM LIABILITIES
Schedule of Authorized, Issued and Outstanding Bonds (2)
City of Auburn: 2015 CAFR Notes to the Financial Statements
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Due to Other Governments
• Valley Communication Center Public Development Authority issued General Obligation bonds in 2000 for a new
dispatch facility. The City is contracted to pay 20% of the debt service of these 15-year bonds that mature in 2015. This
debt is paid from the General fund and its final debt service payment was made in 2015.
• SCORE Public Development Authority issued General Obligation bonds in 2009 to acquire, construct, improve, and
equip a consolidated correctional facility located in Des Moines, Washington. The city is contracted to pay 31% of the
debt service of these 30 year bonds that mature in 2039. This debt is paid from the General fund.
Interest Maturity Original Principal Balance Balance Due Within
Issue Name Rates Date Amount Installments 12/31/14 Additions Reductions 12/31/15 One Year
GOVERNMENTAL DEBT:
General Obligation Bonds:
Valley Communication Public Dev Auth 3.00-4.00%12/1/2015 1,065,000$ $21,000 - $220,000 220,000$ -$ (220,000)$ -$ -$
SCORE Public Development Authority 3.00-6.62%1/1/2039 26,732,850 $593,650 - $1,601,150 24,917,800 - (640,150) 24,277,650 664,950
Total General Obligation Bonds
Due Other Governments 27,797,850$ 25,137,800$ -$ (860,150)$ 24,277,650$ 664,950$
CHANGES IN LONG-TERM LIABILITIES DUE TO OTHER GOVERNMENTS
Enterprise Governmental
Funds Funds 12/31/15
Liabilities payable from restricted assets:
Revenue bonds 2,922,900$ -$ 2,922,900$
Long-term bonds payable:
General obligation bonds 680,000 29,980,000 30,660,000
Capital lease - 569,773 569,773
Revenue bonds 27,087,100 - 27,087,100
Public Works Trust Fund loans 7,563,847 4,086,797 11,650,644
Due to Other Governments - 24,277,650 24,277,650
Employee leave benefits 622,626 2,056,119 2,678,745
Other Post Employment Benefits - 7,247,623 7,247,623
Pension Liability 5,898,586 12,828,199 18,726,785
Premium 1,307,866 143,382 1,451,248
Total long-term debt 46,082,925$ 81,189,543$ 127,272,468$
LONG-TERM LIABILITIES RECONCILIATION
Revenue Bond Debt Service Coverage
The required debt service coverage for the 2013 utility revenue bonds, 2010 utility revenue bonds and the 2005 utility
revenue refunding bonds is 1.25. Debt service coverage for 2015 was 2.96. The ratio indicates the direction and
degree to which the revenue stream exists to meet the current debt burden. The ratio is calculated by dividing the net
revenue available by debt service requirements.
The restricted rate stabilization fund for the utility revenue bonds was established to minimize the effect on rates of
revenue fluctuations between years. By transferring cash into this stabilization fund, adjusted net revenue available for
debt service, as defined, would be decreased by the amount of the transfer. Conversely, transfers out of the account
would increase adjusted net revenue available for debt service.
Estimated Arbitrage Rebate
The Federal Tax Reform Act of 1986 requires issuers of tax-exempt debt of over $5 million to make payments to the
United States Treasury of investment interest received at yields that exceed the issuer’s tax-exempt borrowing
rates. Payments of arbitrage rebate amounts due under these regulations must be made to the U.S. Treasury every five
City of Auburn: 2015 CAFR Notes to the Financial Statements
82
years. The City’s estimated rebatable arbitrage amount as of December 31, 2015 is $0 for its tax-exempt bond issues
subject to the Tax Reform Act issued through that date.
Note 10 – Pension Plans
The following table represents the aggregate pension amounts for all plans subject to the requirements of the GASB
Statement 68, Accounting and Financial Reporting for Pensions for the year 2015:
Aggregate Pension Amounts – All Plans
Pension liabilities $ 18,726,785
Pension assets 4,893,695
Deferred outflows of resources 2,804,543
Deferred inflows of resources 4,230,566
Pension expense/expenditures $ 1,449,827
State Sponsored Pension Plans
Substantially all City full-time and qualifying part-time employees participate in one of the following statewide
retirement systems administered by the Washington State Department of Retirement Systems, under cost-sharing,
multiple-employer public employee defined benefit and defined contribution retirement plans. The state Legislature
establishes, and amends, laws pertaining to the creation and administration of all public retirement systems.
The Department of Retirement Systems (DRS), a department within the primary government of the State of
Washington, issues a publicly available comprehensive annual financial report (CAFR) that includes financial statements
and required supplementary information for each plan. The DRS CAFR may be obtained by writing to:
Department of Retirement Systems
Communications Unit
P.O. Box 48380
Olympia, WA 98540-8380
Or the DRS CAFR may be downloaded from the DRS website at www.drs.wa.gov.
Public Employees’ Retirement System (PERS)
PERS members include elected officials; state employees; employees of the Supreme, Appeals and Superior Courts;
employees of the legislature; employees of district and municipal courts; employees of local governments; and higher
education employees not participating in higher education retirement programs. PERS is comprised of three separate
pension plans for membership purposes. PERS plans 1 and 2 are defined benefit plans, and PERS plan 3 is a defined
benefit plan with a defined contribution component.
PERS Plan 1 provides retirement, disability and death benefits. Retirement benefits are determined as two percent of
the member’s average final compensation (AFC) times the member’s years of service. The AFC is the average of the
member’s 24 highest consecutive service months. Members are eligible for retirement from active status at any age
with at least 30 years of service, at age 55 with at least 25 years of service, or at age 60 with at least five years of
service. Members retiring from active status prior to the age of 65 may receive actuarially reduced benefits.
Retirement benefits are actuarially reduced to reflect the choice of a survivor benefit. Other benefits include duty and
non-duty disability payments, an optional cost-of-living adjustment (COLA), and a one-time duty-related death
benefit, if found eligible by the Department of Labor and Industries. PERS 1 members were vested after the
completion of five years of eligible service. The plan was closed to new entrants on September 30, 1977.
City of Auburn: 2015 CAFR Notes to the Financial Statements
83
Contributions
The PERS Plan 1 member contribution rate is established by State statute at 6 percent. The employer contribution rate
is developed by the Office of the State Actuary and includes an administrative expense component that is currently set
at 0.18 percent. Each biennium, the state Pension Funding Council adopts Plan 1 employer contribution rates. The
PERS Plan 1 required contribution rates (expressed as a percentage of covered payroll) for 2015 were as follows:
PERS Plan 1
Actual Contribution Rates: Employer Employee*
January through June 2015 9.21% 6.00%
July through December 2015 11.18% 6.00%
* For employees participating in JBM, the contribution rate was 12.26%
The City’s actual contributions to the plan were $1,001,824 for the year ended December 31, 2015.
PERS Plan 2/3 provides retirement, disability and death benefits. Retirement benefits are determined as two percent
of the member’s average final compensation (AFC) times the member’s years of service for Plan 2 and 1 percent of
AFC for Plan 3. The AFC is the average of the member’s 60 highest-paid consecutive service months. There is no cap
on years of service credit. Members are eligible for retirement with a full benefit at 65 with at least five years of
service credit. Retirement before age 65 is considered an early retirement. PERS Plan 2/3 members who have at least
20 years of service credit and are 55 years of age or older, are eligible for early retirement with a benefit that is
reduced by a factor that varies according to age for each year before age 65. PERS Plan 2/3 members who have 30 or
more years of service credit and are at least 55 years old can retire under one of two provisions:
• With a benefit that is reduced by three percent for each year before age 65; or
• With a benefit that has a smaller (or no) reduction (depending on age) that imposes stricter return-to-work
rules.
PERS Plan 2/3 members hired on or after May 1, 2013 have the option to retire early by accepting a reduction of five
percent for each year of retirement before age 65. This option is available only to those who are age 55 or older and
have at least 30 years of service credit. PERS Plan 2/3 retirement benefits are also actuarially reduced to reflect the
choice of a survivor benefit. Other PERS Plan 2/3 benefits include duty and non-duty disability payments, a cost-of-
living allowance (based on the CPI), capped at three percent annually and a one-time duty related death benefit, if
found eligible by the Department of Labor and Industries. PERS 2 members are vested after completing five years of
eligible service. Plan 3 members are vested in the defined benefit portion of their plan after ten years of service; or
after five years of service if 12 months of that service are earned after age 44.
PERS Plan 3 defined contribution benefits are totally dependent on employee contributions and investment earnings
on those contributions. PERS Plan 3 members choose their contribution rate upon joining membership and have a
chance to change rates upon changing employers. As established by statute, Plan 3 required defined contribution rates
are set at a minimum of 5 percent and escalate to 15 percent with a choice of six options. Employers do not
contribute to the defined contribution benefits. PERS Plan 3 members are immediately vested in the defined
contribution portion of their plan.
Contributions
The PERS Plan 2/3 employer and employee contribution rates are developed by the Office of the State Actuary to fully
fund Plan 2 and the defined benefit portion of Plan 3. The Plan 2/3 employer rates include a component to address
the PERS Plan 1 UAAL and an administrative expense that is currently set at 0.18 percent. Each biennium, the state
Pension Funding Council adopts Plan 2 employer and employee contribution rates and Plan 3 contribution rates. The
PERS Plan 2/3 required contribution rates (expressed as a percentage of covered payroll) for 2015 were as follows:
City of Auburn: 2015 CAFR Notes to the Financial Statements
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PERS Plan 2/3
Actual Contribution Rates: Employer 2/3 Employee 2*
January through June 2015 9.21% 4.92%
July through December 2015 11.18% 6.12%
Employee PERS Plan 3 varies
* For employees participating in JBM, the contribution rate was 15.30%
The City’s actual contributions to the plan were $1,286,928 for the year ended December 31, 2015.
Law Enforcement Officers’ and Fire Fighters’ Retirement System (LEOFF)
LEOFF membership includes all full-time, fully compensated, local law enforcement commissioned officers, firefighters,
and as of July 24, 2005, emergency medical technicians. LEOFF is comprised of two separate defined benefit plans.
LEOFF Plan 1 provides retirement, disability and death benefits. Retirement benefits are determined per year of service
calculated as a percent of final average salary (FAS) as follows:
• 20+ years of service – 2.0% of FAS
• 10-19 years of service – 1.5% of FAS
• 5-9 years of service – 1% of FAS
The FAS is the basic monthly salary received at the time of retirement, provided a member has held the same position
or rank for 12 months preceding the date of retirement. Otherwise, it is the average of the highest consecutive 24
months’ salary within the last ten years of service. Members are eligible for retirement with five years of service at the
age of 50. Other benefits include duty and non-duty disability payments, a cost-of living adjustment (COLA), and a
one-time duty-related death benefit, if found eligible by the Department of Labor and Industries. LEOFF 1 members
were vested after the completion of five years of eligible service. The plan was closed to new entrants on September
30, 1977.
Contributions
Starting on July 1, 2000, LEOFF Plan 1 employers and employees contribute zero percent, as long as the plan remains
fully funded. The LEOFF Plan I had no required employer or employee contributions for fiscal year 2015. Employers
paid only the administrative expense of 0.18 percent of covered payroll.
LEOFF Plan 2 provides retirement, disability and death benefits. Retirement benefits are determined as two percent of
the final average salary (FAS) per year of service (the FAS is based on the highest consecutive 60 months). Members
are eligible for retirement with a full benefit at 53 with at least five years of service credit. Members who retire prior
to the age of 53 receive reduced benefits. If the member has at least 20 years of service and is age 50, the reduction is
three percent for each year prior to age 53. Otherwise, the benefits are actuarially reduced for each year prior to age
53. LEOFF 2 retirement benefits are also actuarially reduced to reflect the choice of a survivor benefit. Other benefits
include duty and non-duty disability payments, a cost-of-living allowance (based on the CPI), capped at three percent
annually and a one-time duty-related death benefit, if found eligible by the Department of Labor and Industries.
LEOFF 2 members are vested after the completion of five years of eligible service.
Contributions
The LEOFF Plan 2 employer and employee contribution rates are developed by the Office of the State Actuary to fully
fund Plan 2. The employer rate included an administrative expense component set at 0.18 percent. Plan 2 employers
and employees are required to pay at the level adopted by the LEOFF Plan 2 Retirement Board. The LEOFF Plan 2
required contribution rates (expressed as a percentage of covered payroll) for 2015 were as follows:
City of Auburn: 2015 CAFR Notes to the Financial Statements
85
LEOFF Plan 2
Actual Contribution Rates: Employer Employee
State and local governments 5.23% 8.41%
Ports and Universities 8.59% 8.41%
The City’s actual contributions to the plan were $551,812 for the year ended December 31, 2015.
The Legislature, by means of a special funding arrangement, appropriates money from the state General Fund to
supplement the current service liability and fund the prior service costs of Plan 2 in accordance with the
recommendations of the Pension Funding Council and the LEOFF Plan 2 Retirement Board. This special funding
situation is not mandated by the state constitution and could be changed by statute. For the state fiscal year ending
June 30, 2015, the state contributed $58,339,032 to LEOFF Plan 2.
Actuarial Assumptions
The total pension liability (TPL) for each of the DRS plans was determined using the most recent actuarial valuation
completed in 2015 with a valuation date of June 30, 2014. The actuarial assumptions used in the valuation were
based on the results of the Office of the State Actuary’s (OSA) 2007-2012 Experience Study.
Additional assumptions for subsequent events and law changes are current as of the 2014 actuarial valuation report.
The TPL was calculated as of the valuation date and rolled forward to the measurement date of June 30, 2015. Plan
liabilities were rolled forward from June 30, 2014, to June 30, 2015, reflecting each plan’s normal cost (using the
entry-age cost method), assumed interest and actual benefit payments.
• Inflation: 3% total economic inflation; 3.75% salary inflation
• Salary increases: In addition to the base 3.75% salary inflation assumption, salaries are also expected to grow
by promotions and longevity.
• Investment rate of return: 7.5%
Mortality rates were based on the RP-2000 report’s Combined Healthy Table and Combined Disabled Table,
published by the Society of Actuaries. The OSA applied offsets to the base table and recognized future improvements
in mortality by projecting the mortality rates using 100 percent Scale BB. Mortality rates are applied on a generational
basis; meaning, each member is assumed to receive additional mortality improvements in each future year throughout
his or her lifetime.
There were minor changes in methods and assumptions since the last valuation.
• The OSA updated demographic assumptions, consistent with the changes from the 2007-2012 Experience
Study Report, used when valuing the PERS 1 and TERS 1 Basic Minimum COLA.
• The OSA corrected how valuation software calculates a member’s entry age under the entry age normal
actuarial cost method. Previously, the funding age was rounded, resulting in an entry age one year higher in
some cases.
• For purposes of calculating the Plan 2/3 Entry Age Normal Cost contribution rates, the OSA now uses the
current blend of Plan 2 and Plan 3 salaries rather than using a long-term membership assumption of two-thirds
Plan 2 members and one-third Plan 3 members.
• The OSA changed the way it applies salary limits, as described in the 2007-2012 Experience Study Report.
Discount Rate
The discount rate used to measure the total pension liability for all DRS plans was 7.5 percent.
To determine that rate, an asset sufficiency test included an assumed 7.7 percent long-term discount rate to determine
funding liabilities for calculating future contribution rate requirements. (All plans use 7.7 percent except LEOFF 2,
City of Auburn: 2015 CAFR Notes to the Financial Statements
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which has assumed 7.5 percent). Consistent with the long-term expected rate of return, a 7.5 percent future
investment rate of return on invested assets was assumed for the test. Contributions from plan members and
employers are assumed to continue being made at contractually required rates (including PERS 2/3, PSERS 2, SERS 2/3,
and TRS 2/3 employers, whose rates include a component for the PERS 1, and TRS 1 plan liabilities). Based on these
assumptions, the pension plans’ fiduciary net position was projected to be available to make all projected future
benefit payments of current plan members. Therefore, the long-term expected rate of return of 7.5 percent was used
to determine the total liability.
Long-Term Expected Rate of Return
The long-term expected rate of return on the DRS pension plan investments of 7.5 percent was determined using a
building-block-method. The Washington State Investment Board (WSIB) used a best estimate of expected future rates
of return (expected returns, net of pension plan investment expense, including inflation) to develop each major asset
class. Those expected returns make up one component of WSIB’s capital market assumptions. The WSIB uses the
capital market assumptions and their target asset allocation to simulate future investment returns at various future
times. The long-term expected rate of return of 7.5 percent approximately equals the median of the simulated
investment returns over a 50-year time horizon.
Estimated Rates of Return by Asset Class
Best estimates of arithmetic real rates of return for each major asset class included in the pension plan’s target asset
allocation as of June 30, 2015, are summarized in the table below. The inflation component used to create the table is
2.2 percent and represents the WSIB’s most recent long-term estimate of broad economic inflation.
Asset Class
Target Allocation
% Long-Term Expected
Real Rate of Return
Arithmetic
Fixed Income 20% 1.70%
Tangible Assets 5% 4.40%
Real Estate 15% 5.80%
Global Equity 37% 6.60%
Private Equity 23% 9.60%
100%
Sensitivity of NPL
The table below presents the City’s proportionate share of the net pension liability calculated using the discount rate of
7.5 percent, as well as what the City’s proportionate share of the net pension liability would be if it were calculated
using a discount rate that is 1-percentage point lower (6.5 percent) or 1-percentage point higher (8.5 percent) than the
current rate.
1% Decrease
(6.5%)
Current Discount Rate
(7.5%)
1% Increase
(8.5%)
PERS 1 $ 12,283,765 $ 10,089,313 $ 8,202,285
PERS 2/3 25,256,417 8,637,472 (4,087,031)
LEOFF 1 (799,711) (1,250,031) (1,633,845)
LEOFF 2 $ 3,648,893 $ (3,643,664) $ (9,131,590)
Pension Plan Fiduciary Net Position
Detailed information about the State’s pension plans’ fiduciary net position is available in the separately issued DRS
financial report.
City of Auburn: 2015 CAFR Notes to the Financial Statements
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Pension Liabilities (Assets), Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources
Related to Pensions
At June 30, 2015, the City reported a total pension liability of $18,726,785 for its proportionate share of the net
pension liabilities as follows:
Liability (or Asset)
PERS 1 $ 10,089,313
PERS 2/3 8,637,472
LEOFF 1 (1,250,031)
LEOFF 2 $ (3,643,664)
The amount of the liability /(asset) reported above for LEOFF Plan 2 reflects a reduction for State pension support
provided to the City. The amount recognized by the City as its proportionate share of the net pension liability/(asset),
the related State support, and the total portion of the net pension liability/(asset) that was associated with the City
were as follows:
Liability (or Asset)
LEOFF 2 – employer’s proportionate share $ (2,193,486)
LEOFF 2 – State’s proportionate share of the net
pension liability/(asset) associated with the
employer
(1,450,178)
TOTAL $ (3,643,664)
At June 30, the City’s proportionate share of the collective net pension liabilities was as follows:
Proportionate
Share 6/30/14
Proportionate Share
6/30/15
Change in
Proportion
PERS 1 0.196420% 0.192878% (0.003542)%
PERS 2/3 0.242569% 0.241739% (0.00083)%
LEOFF 1 0.105779% 0.103718% (0.002061)%
LEOFF 2 0.348591% 0.354511% 0.00592%
Employer contribution transmittals received and processed by the DRS for the fiscal year ended June 30 are used as the
basis for determining each employer’s proportionate share of the collective pension amount’s reported by the DRS in
the Schedules of Employer and Nonemployer Allocations for all plans except LEOFF 1.
LEOFF Plan 1 allocation percentages are based on the total historical employer contributions to LEOFF 1 from 1971
through 2000 and the retirement benefit payments in fiscal year 2015. Historical data was obtained from a 2011 study
by the Office of the State Actuary (OSA). In fiscal year 2015, the state of Washington contributed 87.12 percent of
LEOFF 1 employer contributions and all other employers contributed the remaining 12.88 percent of employer
contributions. LEOFF 1 is fully funded and no further employer contributions have been required since June 2000. If
the plan becomes underfunded, funding of the remaining liability will require new legislation. The allocation method
the plan chose reflects the projected long-term contribution effort based on historical data.
In fiscal year 2015, the state of Washington contributed 39.80 percent of LEOFF 2 employer contributions pursuant to
RCW 41.27.726 and all other employers contributed the remaining 60.20 percent of employer contributions.
The collective net pension liability (asset) was measured as of June 30, 2015, and the actuarial valuation date on which
the total pension liability (asset) is based was as of June 30, 2014, with update procedures used to roll forward the
total pension liability to the measurement date.
City of Auburn: 2015 CAFR Notes to the Financial Statements
88
Pension Expense
For the year ended December 31, 2015, the City recognized pension expense as follows:
Pension Expense
PERS 1 $ 510,667
PERS 2/3 944,123
LEOFF 1 (231,464)
LEOFF 2 226,501
TOTAL $ 1,449,827
Deferred Outflows of Resources and Deferred Inflows of Resources
At December 31, 2015, the City reported deferred outflows of resources and deferred inflows of resources related to
pensions from the following sources:
PERS 1 Deferred Outflows
of Resources
Deferred Inflows
of Resources
Differences between expected and actual experience $ - $ -
Net difference between projected and actual
investment earnings on pension plan investments
- 551,996
Changes of assumptions - -
Changes in proportion and differences between
contributions and proportionate share of
contributions
- -
Contributions subsequent to the measurement date 13,762 -
TOTAL $ 13,762 $ 551,996
PERS 2/3 Deferred Outflows
of Resources
Deferred Inflows
of Resources
Differences between expected and actual experience $ 918,166 $ -
Net difference between projected and actual
investment earnings on pension plan investments
- 2,305,796
Changes of assumptions 13,917 -
Changes in proportion and differences between
contributions and proportionate share of
contributions
- 26,706
Contributions subsequent to the measurement date 1,246,032 -
TOTAL $ 2,178,115 $ 2,332,502
LEOFF 1 Deferred Outflows
of Resources
Deferred Inflows
of Resources
Differences between expected and actual experience $ - $ -
Net difference between projected and actual
investment earnings on pension plan investments
- 211,030
Changes of assumptions - -
Changes in proportion and differences between
contributions and proportionate share of
contributions
- -
Contributions subsequent to the measurement date - -
TOTAL $ - $ 211,030
City of Auburn: 2015 CAFR Notes to the Financial Statements
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LEOFF 2 Deferred Outflows
of Resources
Deferred Inflows
of Resources
Differences between expected and actual experience $ 319,063 $ -
Net difference between projected and actual
investment earnings on pension plan investments
- 1,104,011
Changes of assumptions 9,611 -
Changes in proportion and differences between
contributions and proportionate share of
contributions
- 31,027
Contributions subsequent to the measurement date 283,992 -
TOTAL $ 612,666 $ 1,135,038
Deferred outflows of resources related to pensions resulting from the City’s contributions subsequent to the
measurement date will be recognized as a reduction of the net pension liability in the year ended December 31, 2016.
Other amounts reported as deferred outflows and deferred inflows of resources related to pensions will be recognized
in pension expense as follows:
Year ended December 31: PERS 2/3
2016 $ (318,277)
2017 (318,277)
2018 (318,277)
2019 $ (127,311)
Year ended December 31: LEOFF 2
2016 $ (130,059)
2017 (130,059)
2018 (130,059)
2019 (130,059)
2020 (130,059)
Thereafter $ (26,010)
City of Auburn Fire Relief and Pension Plan
The City is the administrator of the Firemen’s Pension Plan (Plan), which is a closed, single-employer defined benefit
pension plan that was established in conformance with RCW Chapters 41.16 and 41.18. This plan provided retirement
and disability benefits, annual cost-of-living adjustments, and death benefits to plan members and beneficiaries.
Membership is limited to firefighters employed prior to March 1, 1970 when the LEOFF retirement system was
established. The City’s obligation under the Firemen’s Pension Plan consists of paying all benefits, including payments
to beneficiaries and healthcare, for firefighters who retired prior to March 1, 1970, and excess pension and healthcare
benefits of LEOFF for covered firefighters who retired after March 1, 1970. Benefits and refunds of the defined benefit
pension plan are recognized when due and payable in accordance with the Plan. The Plan does not issue a separate
financial report.
The City has determined that GASB Statement No. 67 – Financial Reporting for Pension Plans; an amendment of GASB
Statement No. 25 does not apply to the City’s single-employer Fire Relief and Pension Fund as it does not meet the
criteria applicability set by the statement as the contributions to that fund are not irrevocable. Plan assets may be used
for to cover medical expenses which are outside of the scope of the pension plan benefits. Therefore, the Fire Relief
and Pension Fund has been presented in conformance with GASB Statement No. 25 and Statement No. 50.
City of Auburn: 2015 CAFR Notes to the Financial Statements
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Under state law, the Firemen’s Pension Plan is provided an allocation of 25% of all monies received by the state from
taxes on fire insurance premiums, interest earnings, member contributions made prior to the inception of LEOFF, and
City contributions required to meet projected future pension obligations. The actuary determined as of January 1,
2015 that no future City contributions would be required beyond future revenues from state fire insurance taxes and
interest earnings. In 2015, $75,702 was received from the state from taxes on fire insurance premiums, $5,065 was
received from interest earnings. On-behalf payments of fringe benefits and salaries for the City’s employees were
recognized as revenues and expenditures/expenses during the period. Administrative costs, such as City staff time and
actuarial valuation costs are funded from interest earnings or City contributions. The required schedule of funding
progress immediately following the notes to the financial statements presents multi-year trend information about
whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liability
for benefits.
Membership of the Firemen’s Pension Plan consisted of 13 eligible, of which 11 are receiving benefits.
Fiscal Actual Annual Required Percentage Annual Percentage Net
Year Employer Contribution of ARC Pension Cost of APC Pension (Asset)
Ending Contributions*(ARC)Contributed (APC)Contributed Obligation
December 31, 2004 (137,783) (91,881) N/A (90,143) N/A (122,820)
December 31, 2005 (144,746) (78,690) N/A (76,827) N/A (54,901)
December 31, 2006 (149,327) (78,690) N/A (77,774) N/A 16,652
December 31, 2007 17,920 (5,048) N/A (5,420) N/A (6,688)
December 31, 2008 12,167 (5,048) N/A (4,885) N/A (23,740)
December 31, 2009 37,232 (78,233) N/A (77,503) N/A (138,475)
December 31, 2010 49,049 (78,233) N/A (73,634) N/A (261,158)
December 31, 2011 43,474 21,469 202%30,859 140.88%(273,773)
December 31, 2012 48,380 21,469 225%32,156 150.00%(289,997)
December 31, 2013 52,326 70,351 74%83,024 63.00%(259,299)
December 31, 2014 297,177 70,351 422%82,715 359.00%(473,761)
December 31, 2015 55,966 47,670 117%73,004 77.00%(456,723)
*Employer Contributions for pensions are total contributions to the Fund net of disbursement from the Fund for
medical expenses under RCW 41.26.150 and administrative expenses.
GASB STATEMENT No. 27GASB STATEMENT No. 25
SCHEDULE OF EMPLOYER CONTRIBUTIONS THREE YEAR TREND INFORMATION
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The information presented in the preceding required schedules was determined as part of the actuarial valuations at
the date indicated.
Fiscal ARC at Amort.Annual Total
Year End of Interest on ARC Factor Pension Cost Employer Change in NPO (Asset)
Ending Year (1)NPO (2)Adjustment *(APC)Contributions NPO Balance (3)
12/31/2004 (91,881) (11,932) (13,670) 12.47%(90,143) (137,783) 47,640 (122,820)
12/31/2005 (78,690) (7,369) (9,232) 13.30%(76,827) (144,746) 67,919 (54,901)
12/31/2006 (78,690) (3,294) (4,210) 13.04%(77,774) (149,327) 71,553 16,652
12/31/2007 (5,048) 833 1,205 13.82%(5,420) 17,920 (23,340) (6,688)
12/31/2008 (5,048) (334) (497) 13.46%(4,885) 12,167 (17,052) (23,740)
12/31/2009 (78,233) (950) (1,680) 14.13%(77,503) 37,232 (114,735) (138,475)
12/31/2010 (78,233) (5,539) (10,138) 13.66%(73,634) 49,049 (122,683) (261,158)
12/31/2011 21,469 (10,446) (19,836) 13.17%30,859 43,474 (12,615) (273,773)
12/31/2012 21,469 (10,951) (21,638) 12.65%32,156 48,380 (16,224) (289,997)
12/31/2013 70,351 (10,875) (23,548) 12.32%83,024 52,326 30,698 (259,299)
12/31/2014 70,351 (9,724) (22,088) 11.74%82,715 297,177 (214,462) (473,761)
12/31/2015 47,670 (16,582) (41,916) 11.30%73,004 55,966 17,038 (456,723)
(1) A change in consulting actuaries resulted in a recommended change in the actuarial methods and assumptions.
(2) 7% interest rate was used for years prior to January 1, 2003-2004; 6% 2005-2006; 5% 2007-2008; 4% 2011-2012,
3.75% 2013, 3.5% 2014 - 2015
Statement of Net Position prior to 2010.
* Based on 30-year level-dollar closed amortization as of January 1, 1999.
** Assumed amounts will be replaced at year end with actual amounts.
(3) The Net Pension Obligation (NPO) balance is reflected as part of Deferred Charges on the Government-wide
GASB STATEMENT No. 27
Annual Development of Pension Cost
Valuation date:
Actuarial cost method:
Amortization method:
Remaining amortization period:
Asset valuation method:
Actuarial Valuation Info:
Fair market value
January 1, 2015
Entry age normal
Level dollar amount
14 years
30-year, closed as of January 1, 1999
Inflation rate:2.25%
Investment rate of return:3.50%
Projected salary increases:3.25%
Cost-of living adjustments:2.50%
Actuarial Assumptions
City of Auburn: 2015 CAFR Notes to the Financial Statements
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NOTE 11 – OTHER POST-EMPLOYMENT BENEFITS
In 2008, the city implemented GASB Statement 45, Accounting and Financial Reporting by Employers for Post
Employment Benefits Other Than Pensions.
Plan Description
The city is the administrator of the LEOFF 1 employees plan covering lifetime medical care. This plan is a defined
benefit healthcare plan, other post employment benefit plan (OPEB).
The city is required to pay post employment benefits in accordance with Revised Code of Washington (RCW) Chapter
41.16, all medical and long term care as long as a disability exists are covered for any active firefighter hired prior to
March 1, 1970. For any retired firefighter hired prior to March 1, 1970, medical and long term care are covered at the
discretion of the Retirement Board. Members retired prior to 1961 for reasons other than duty disability are not
eligible for medical benefits during retirement.
In 1970, LEOFF was established by the Legislature under RCW Chapter 41.26. LEOFF members who joined the system
by September 30, 1977 are Plan 1 members. For Plan 1 members, the city is required to pay all healthcare expenses
incurred by LEOFF 1 retirees. The City’s cost is reduced by any amounts retirees receive from Medicare or other health
plans.
Funding Policy
The funding policy is based upon the pay-as-you-go financing requirements paid out of the General fund.
Membership
As of December 31, 2015, there was 1 active member and 53 retirees meeting the eligibility requirements of a LEOFF 1
member. This is considered a closed group with no new members. The one active member is employed by the Valley
Regional Fire Authority (VRFA) which is a separate governmental entity and the City is billed annually for their
medical costs.
Annual OPEB Cost and Net OPEB Obligation
The City’s annual other post employment benefit (OPEB) cost is calculated based upon the annual required
contribution (ARC), an amount actuarially determined in accordance with the parameters of GASB Statement 45. The
ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover the normal cost each year and
amortize any unfunded actuarial liabilities over a period of 21 years as of January 1, 2008. The following table shows
the components of the City’s annual OPEB cost for the year, the amount actually contributed to the plan and changes
in the City’s net OPEB for LEOFF.
Fiscal Year Ending
Annual Required Contribution (ARC)12/31/2013 12/31/2014 12/31/2015
1. Annual Normal Costs at beginning of year 101,456$ 45,656$ 45,656$
2. Amortization of UAAL at beginning of year 2,011,425 2,168,028 2,168,028
3. Interest to end of year 84,515 71,945 71,945
4. ARC at end of year 2,197,396$ 2,285,629$ 2,285,629$
5. Interest on Net OPEB Obligation 162,738 161,461 201,873
6. Adjustment to ARC 335,724 410,380 541,686
7. Annual OPEB Cost 2,024,410$ 2,036,710$ 1,945,816$
8. Employer Contributions 1,124,809 793,286 909,657
9. Change in Net OPEB Obligation 899,601 1,243,424 1,036,159
10. Net OPEB Obligation at beginning of year 4,068,439 4,968,040 6,211,464
11. Net OPEB Obligation at end of year 4,968,040$ 6,211,464$ 7,247,623$
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The net OPEB obligation of $7,247,623 is included as a non-current liability on the Statement of Net Position.
The City’s annual OPEB cost, the percentage of OPEB costs contributed to the plan, and the net OPEB obligation for
2015, 2014 and 2013 are as follows:
Funded Status and Funding Progress
As of January 1, 2014, the most recent actuarial valuation date, the plan was 0% funded. The accrued liability for
benefits was $26.2 million, and the actuarial value of assets was $0, resulting in a UAAL of $26.2 million. The
required schedule of funding progress immediately following the notes to the financial statements presents multi-year
trend information about whether the actuarial value of plan assets is increasing or decreasing over time relative to the
actuarial accrued liability for benefits.
Actuarial valuations involve estimates of the value of reported amounts and assumptions about the probability of
occurrence of events far into the future. Examples include assumptions about future employment, mortality, and the
healthcare cost trend. Amounts determined regarding the funded status of the plan and the annual required
contributions of the employer are subject to continual revision as actual results are compared with past expectations
and new estimates are made about the future.
Actuarial Methods and Assumptions
Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by
the employer and the plan members) and include the types of benefits provided at the time of each valuation. The
actuarial methods and assumptions used include techniques that are designed to reduce the effects of short-term
volatility in actuarial accrued liabilities, consistent with the long-term perspective of the calculations.
In the January 1, 2014 actuarial valuation, the entry age normal actuarial cost method was used. The actuarial
assumptions used included a 3.25% discount rate, which is based upon the long-term investment yield on the
investments that are expected to be used to finance the payment of benefits. The medical (healthcare) trend rate of
6.1% for pre-65 retirees and 6.2% for post-65 retirees is assumed and the inflation rate includes the dental inflation
rate of 5.0% and long term care inflation rate of 4.75%.
The UAAL is being amortized on a closed basis at the assumed discount rate using the level dollar amortization
method. The remaining amortization period at January 1, 2014 was 15 years.
NOTE 12 – ASSOCIATION OF WASHINGTON CITIES EMPLOYEE BENEFIT TRUST (“Trust”)
Trust Description
The City is a member of the Association of Washington Cities Employee Benefit Trust Health Care Program (AWC
Trust HCP). Chapter 48.62 RCW provides that two or more local government entities may, by Interlocal agreement
under Chapter 39.34 RCW, form together or join a pool or organization for the joint purchasing of insurance, and/or
joint self-insurance, to the same extent that they may individually purchase insurance, or self-insure.
Contributions as a
Annual Percentage of Net OPEB
Fiscal Year Ending OPEB Cost Annual OPEB Cost Obligation
December 31, 2015 1,945,816$ 47%7,247,623$
December 31, 2014 2,036,710 39%6,211,464
December 31, 2013 2,024,410 56%4,968,040
City of Auburn: 2015 CAFR Notes to the Financial Statements
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An agreement to form a pooling arrangement was made pursuant to the provisions of Chapter 39.34 RCW, the
Interlocal Cooperation Act. The AWC Trust HCP was formed on January 1, 2014 when participating cities, towns, and
non-city entities of the AWC Employee Benefit Trust in the State of Washington joined together by signing an
Interlocal Governmental Agreement to jointly self-insure certain health benefit plans and programs for participating
employees, their covered dependents and other beneficiaries through a designated account within the Trust.
As of December 31, 2015, 261 cities/towns/non-city entities participate in the AWC Trust HCP.
The AWC Trust HCP allows members to establish a program of joint insurance and provides health and welfare
services to all participating members. The AWC Trust HCP pools claims without regard to individual member
experience. The pool is actuarially rated each year with the assumption of projected claims run-out for all current
members. The AWC Trust HCP includes medical insurance through Regence BlueShield and Asuris Northwest Health,
dental insurance through Delta Dental of Washington, and vision insurance through Vision Service Plan. Eligible
members are cities and towns within the state of Washington. Non-City Entities (public agency, public corporation,
intergovernmental agency, or political subdivision within the state of Washington) are eligible to apply for coverage
into the AWC Trust HCP, submitting application to the Board of Trustees for review as required in the Trust
Agreement.
Participating employers pay monthly premiums to the AWC Trust HCP. The AWC Trust HCP is responsible for
payment of all covered claims. The AWC Trust HCP purchases stop loss insurance for Regence/Asuris plans at an
Individual Stop Loss (ISL) of $1.5 million through Life Map, and Group Health ISL at $750,000 through Sun Life. The
aggregate policy is for 200% of expected medical claims.
Participating employers contract to remain in the AWC HCP for a minimum of three years. Participating employers
with over 250 employees must provide written notice of termination of all coverage a minimum of 12 months in
advance of the termination date, and participating employers with under 250 employees must provide written notice
of termination of all coverage a minimum of 6 months in advance of termination date. When all coverage is being
terminated, termination will only occur on December 31. Participating employers terminating a group or line of
coverage must notify the HCP a minimum of 60 days prior to termination. A participating employer’s termination will
not obligate that member to past debts, or further contributions to the HCP. Similarly, the terminating member forfeits
all rights and interest to the HCP Account.
The operations of the Health Care Program are managed by the Board of Trustees or its delegates. The Board of
Trustees is comprised of four regionally elected officials from Trust member cities or towns, the Employee Benefit
Advisory Committee Chair and Vice Chair, and two appointed individuals from the AWC Board of Directors, who are
from Trust member cities or towns. The Trustees or its appointed delegates review and analyze Health Care Program
related matters and make operational decisions regarding premium contributions, reserves, plan options and benefits
in compliance with Chapter 48.62 RCW. The Board of Trustees has decision authority consistent with the Trust
Agreement, Health Care Program policies, Chapter 48.62 RCW and Chapter 200-110-WAC.
The accounting records of the Trust HCP are maintained in accordance with methods prescribed by the State Auditor’s
office under the authority of Chapter 43.09 RCW. The Trust HCP also follows applicable accounting standards
established by the Governmental Accounting Standards Board (“GASB”). Year-end financial reporting is done on an
accrual basis and submitted to the Office of the State Auditor as required by Chapter 200-110 WAC. The audit report
for the AWC Trust HCP is available from the Washington State Auditor’s office
Funding Policy
The Trust provides that contribution requirements of Participating Employers and of participating employees, retirees
and other beneficiaries, if any, are established and may be amended by the Board of Trustees of the Trust. Retirees of
City of Auburn: 2015 CAFR Notes to the Financial Statements
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the City receiving medical benefits from the Trust contribute up to $871.51 per month for non-Medicare enrolled
retiree-only coverage, $1,750.63 for non-Medicare enrolled retiree and spouse coverage, $1,214.45 for Medicare
enrolled retiree and non-Medicare enrolled spouse (or non-Medicare enrolled retiree and Medicare-enrolled spouse)
and $670.66 for Medicare-enrolled retiree and spouse coverage.
Participating Employers are not contractually required to contribute an assessed rate each year by the Trust for non-
LEOFF 1 retirees. The retire pays for 100% of the premium.
NOTE 13 – CONSTRUCTION COMMITMENTS
At December 31, 2015, the City had the following contractual obligations on construction projects:
SCHEDULE OF OUTSTANDING CONSTRUCTION OBLIGATIONS
As of December 31, 2015
Amount Outstanding
Street projects 690,429$
Utilities projects 4,076,957
Other projects 5,040,449
Total commitments 9,807,835$
NOTE 14 – CEMETERY ENDOWED CARE FUND
The City maintains one permanent fund known as the cemetery endowed care fund. Paid into this fund is 10% of the
base, pre-tax sales price of each grave, niche or crypt. This fund is irreducible in principal and no part of the income of
this fund shall ever be used for purposes other than those specified upon the creation of the fund.
RCW 68.44.020 restricts the use of endowment net appreciation to endowment care “stipulated in the instrument by
which the fund was established”. For the City, the instrument that established the fund is Auburn City Code section
3.04.080, and section 3.040.120 governs the use of the fund.
ACC 3.04.120 restricts net interest or income from investments to the care of the lots and in the improvement or
embellishment of the cemetery or the erection or preservation of any buildings or structures, fences or walks, or for
the repair, preservation, erection or renewal of any tomb, monument, grave, stone, fence, railing or other erection in
or around the cemetery. The funds may also be used for planting and cultivating trees, shrubs, flowers or plants in or
around the cemetery. All expenditures of income from the fund must first be authorized by the City Council.
For 2015, of the $5,073 net appreciation on investments, all was available for expenditures. Amounts that are
available for expenditure are reflected as assigned fund balance.
NOTE 15 – JOINT VENTURES / RELATED PARTY
Valley Communications Center
The “Valley Communications Center” was established August 20, 1976, when an Interlocal Agreement was entered
into by four participating municipal corporations: Renton, Kent, Auburn and Tukwila. The provisions and terms of
the “Interlocal Cooperation Act”, pursuant to RCW 39.34, sanction the agreement. The initial duration of the
agreement was five years and thereafter is automatically extended for consecutive two-year periods, unless terminated
by one or more of the participating cities. Any such termination must be in writing and served upon the other cities
on or before July 1 in any one year and such termination shall then become effective on the last day of such ye ar.
City of Auburn: 2015 CAFR Notes to the Financial Statements
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On August 4, 1999 the Administration Board of Valley Communications Center voted to include the City of Federal
Way as a full participating member city as of January 1, 2000. The five participating municipal corporations that
include the cities of Renton, Kent, Auburn, Tukwila, and Federal Way on April 17, 2000 entered into a new Interlocal
Agreement, pursuant to RCW 39.34, et seq. This agreement reaffirmed Valley Communications Center as a
governmental administration agency pursuant to RCW 39.34.030 (3) (b).
The purpose of the joint operation, hereafter referred to as Valley Com, is to provide improved consolidated
emergency communications (dispatch) services for police, fire and medical aid to the five participating cities and to the
several subscribing agencies, which include King County Fire Districts #2, #20, #40, #43, #44, #47, Black Diamond Fire
Department, Vashon Island Fire Department, City of Pacific Police and Fire Departments, City of Algona Police
Department, City of Black Diamond Police Department, City of Des Moines Police Department, SeaTac Fire
Department, North Highline Fire Department, and King County EMS Units. In 1988, King County Fire District #1 was
annexed to the City of Tukwila. A separate agreement between Valley Com and the subscribing agencies has been
executed, which set forth condition of services and rates charged.
The participating cities provide the majority of revenues to Valley Com. The method of allocating revenue source was
changed in 1990 to a basis of prior year’s calls with actual first and second quarter and estimated third and fourth
quarter calls. The allocation of prorated financial participation among the five participating cities is the percentage of
estimated dispatched calls attributed to each jurisdiction compared to the total actual and estimated dispatched calls,
for the period for January 1 through December 31. The percentages are applied to the current approved budget, less
revenue from subscribing agencies and all other sources.
The 2015 cost distribution for the five participating cities is as follows:
Dispatchable Percent of
Calls Total *
Kent 107,575 27.15%
Renton 78,046 19.69%
Auburn 92,008 23.22%
Tukwila 34,477 8.70%
Federal Way 84,170 21.24%
Total 396,276 100.00%
* Distribution of current year net income is based on these budgeted percentages.
Valley Com is served by an Administration Board composed of the Mayors or designated representatives from the five
participating cities of Renton, Kent, Auburn, Tukwila and Federal Way. The Administration Board is responsible for
the following functions: 1) Budget review and recommendation to the legislative bodies of the participating cities, and
budget adoption after each legislative body has approved the required financial participation for the ensuing year; 2)
Approval of appointment and/or discharge of the Director; 3) Approval of personnel policy and final decisions on all
major policy changes; 4) Review and approval of all contracts.
In addition, an Operations Board provides direction and consists of two members of each participating City’s public
safety departments, including the heads of such departments or their designees. The Operations Board performs the
following functions: 1) Oversees the operation of Valley Com, advises and makes recommendations to the
Administration Board; 2) Makes recommendations on Director selection; 3) Presents proposed policies and budget to
the Administration Board; 4) Approves disbursement of funds by the Director.
City of Auburn: 2015 CAFR Notes to the Financial Statements
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The Director presents a proposed budget to the Operations Board on or before August 15 of each year. Said budget is
then presented to the Administration Board by September 1 of each year. The Administration Board can make changes
to the proposed Valley Com budget as it finds necessary, but final approval falls to the legislative body of each
participating city in accordance with the provisions of the Interlocal Agreement.
In August 1993, Valley Com entered into an Interlocal Cooperation Agreement, pursuant to Chapter 39.34 RCW, with
the sub-regions of King County, Seattle and Eastside Public Safety Communications Agency (EPSCA). This agreement
governs the development, acquisition and installation of the 800 MHz emergency radio communications system
(system) funded by the $57 million King County levy.
This agreement provides that upon voluntary termination of any sub-region participation in the system, it surrenders
its radio frequencies, relinquishes its equipment and transfers any unexpended levy proceeds and association
equipment replacement reserves to another sub-region or consortium of sub-regions.
The share of equity belonging to the five participating cities is as follows:
Item Kent Renton Auburn Tukwila Federal Way Total
Equity Dec 31, 2014 4,889,877$ 3,474,017$ 3,298,133$ $1,931,257 2,350,496$ 15,943,780$
Current year change 649,015 470,862 555,097 208,004 507,809 2,390,787
Equity Dec 31, 2015 5,538,892$ 3,944,879$ 3,853,230$ 2,139,261$ 2,858,305$ 18,334,567$
% of equity 30.21%21.52%21.02%11.67%15.59%
% of 2015 distribution 27.15%19.69%23.22%8.70%21.24%
Liabilities are the responsibility of the five participating cities in direct proportion to their equity position.
Complete audited financial statements for Valley Communications Center can be obtained from Valley
Communications Center, 27519 108th Ave SE, Kent, WA 98030, or telephone 253-372-1300.
South Correctional Entity (SCORE)
The South Correctional Entity (SCORE) consolidated correctional facility was established February 25, 2009, when an
Interlocal Agreement (the “Original Interlocal Agreement”) was entered into by seven participating municipal
governments, the “Member Cities” of Auburn, Burien, Des Moines, Federal Way, Renton, SeaTac and Tukwila, under
the authority of the “Interlocal Cooperation Act” (RCW 39.34). This “Original Interlocal Agreement” was amended
and restated October 1, 2009 and named the City of Des Moines as the “Host City” and the remaining Member Cities
as “Owner Cities”. This interlocal agreement is known as the “Formation Interlocal Agreement”. Pursuant to a
separate “Host City Agreement” dated October 1, 2009, the Host City will not enjoy the same equity position as the
Owner Cities until all debts issued are paid and the Host City fulfills all of its obligations as outlined in the Host City
Agreement. Pursuant to SCORE financial policies, all unexpected funds or reserve funds shall be distributed based on
the percentage of the Member City’s average daily population at the SCORE Facility for the last three (3) years
regardless of its Owner City or Host City status.
SCORE, a governmental administrative agency pursuant to RCW 39.34.030(3), has the power to acquire, construct,
own, operate, maintain, equip, and improve a correctional facility known as the “SCORE Facility” and to provide
correctional services and functions incidental thereto, for the purpose of detaining arrestees and sentenced offenders in
the furtherance of public safety and emergencies within the jurisdiction of the Member Cities. The SCORE Facility may
serve the Member Cities and Subscribing Agencies which are in need of correctional facilities. Any agreement with a
Subscribing Agency shall be in writing and approved by SCORE as provided within the SCORE Formation Interlocal
Agreement.
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Financing for the acquisition, construction, equipping, and improvement of the SCORE Facility was provided by bonds
issued by the South Correctional Entity Facility Public Development Authority (the “SCORE PDA”), a public
development authority chartered by the City of Renton pursuant to RCW 35.21.730 through 35.21.755. The SCORE
PDA issued $86 million in special obligation bonds in 2009 (the “Bonds”) to construct, develop, acquire and equip the
SCORE Facility. Pursuant to the Formation Interlocal Agreement and the ordinances of each city, each Owner City
(which includes the Cities of Auburn, Burien Federal Way, Renton, SeaTac, and Tukwila) is obligated to budget for and
pay its share, and only its share, of the principal of and interest on the Bonds as the same become due and pay able.
Each Owner City’s obligation to pay its portion is an irrevocable, unconditional full faith and credit obligation of such
Owner City, payable from property taxes levied within the constitutional and statutory authority provided without a
vote of the electors of the Owner City on all of the taxable property within the Owner City and other sources of
revenues available therefor. The following is a summary of the debt service requirements for the Bonds:
BABs Auburn Burien Federal Way Renton SeaTac Tukwila
Year Principal Interest Subsidy Total 31%4%18%36%3%8%
2016 2,065,000$ 4,911,886$ (1,517,676)$ 5,459,210$ 1,692,355$ 218,368$ 982,658$ 1,965,316$ 163,776$ 436,737$
2017 2,145,000 4,820,241 (1,511,685) 5,453,556 1,690,602 218,142 981,640 1,963,280 163,607 436,284
2018 2,240,000 4,715,979 (1,511,685) 5,444,294 1,687,731 217,772 979,973 1,959,946 163,329 435,544
2019 2,310,000 4,602,229 (1,475,151) 5,437,078 1,685,494 217,483 978,674 1,957,348 163,112 434,966
2020 2,385,000 4,484,854 (1,437,475) 5,432,379 1,684,037 217,295 977,828 1,955,656 162,971 434,590
2021-2025 13,405,000 20,377,998 (7,109,462) 26,673,536 8,268,796 1,066,941 4,801,236 9,602,473 800,206 2,133,883
2026-2030 16,325,000 15,803,611 (5,715,798) 26,412,813 8,187,972 1,056,513 4,754,306 9,508,613 792,384 2,113,025
2031-2035 20,095,000 9,856,351 (3,682,383) 26,268,968 8,143,380 1,050,759 4,728,414 9,456,828 788,069 2,101,517
2036-2039 19,410,000 2,636,145 (1,147,380) 20,898,765 6,478,617 835,951 3,761,778 7,523,555 626,963 1,671,901
Totals 80,380,000$ 72,209,294$ (25,108,695)$ 127,480,599$ 39,518,984$ 5,099,224$ 22,946,507$ 45,893,015$ 3,824,417$ 10,198,447$
Summary of Debt Service Requirements
Debt Service Schedule Debt Service Allocation to Owner Cities
The City of Auburn reports its share of equity interest in the Governmental Activities column within the Government-
wide financial statements under non-current assets. The following is condensed (unaudited) financial information as of
December 31, 2015 related to SCORE:
Member City Percent of Equity 2014 Equity Balance Prior Period Adjustment 2015 Apportionment 2015 Equity Balance
Auburn 30.00%4,243,235$ (1,048,625)$ 137,167$ 3,331,777$
Burien 3.00%515,410 (155,837) 17,268 376,841
Des Moines 2.00%292,161 (113,182) 18,288 197,267
Federal Way 24.00%3,676,724 (1,204,461) 148,312 2,620,575
Renton 29.00%4,220,405 (1,134,356) 136,621 3,222,670
SeaTac 5.00%712,666 (240,723) 26,524 498,467
Tukwila 7.00%1,080,470 (326,032) 34,103 788,541
Grand Totals 100.00%14,741,071$ (4,223,216)$ 518,283$ 11,036,138$
South Correctional Entity (SCORE)
2015 Member Cities Equity Allocation
Completed financial statements for SCORE and SCORE PDA can be obtained at SCORE, 20817 17th Avenue South, Des
Moines, WA 98198.
Since the obligation to fund future joint venture-related debt is separately reported as due to other governments, the
investment in joint ventures is reported as a combination of this debt with the current reported equity in joint ventures
as follows:
Balance GASB 68 Restated Additions Reductions Balance
12/31/2014 Adjustment Balance 12/31/2015
Valley Communication Public Dev Auth 220,000$ -$ 220,000$ -$ (220,000)$ -$
SCORE Public Development Authority 24,917,800 - 24,917,800 - (640,150) 24,277,650
Due to Other Governments 25,137,800 - 25,137,800 - (860,150) 24,277,650
Valley Communications Center 5,079,377 (1,781,244) 3,298,133 555,096 - 3,853,229
South Correctional Entity (SCORE)4,243,234 (1,048,624) 3,194,610 137,167 - 3,331,777
Equity Share 9,322,611 (2,829,868) 6,492,743 692,263 - 7,185,006
Total Investment in Joint Ventures 31,462,656$
Investment in Joint Ventures
City of Auburn: 2015 CAFR Notes to the Financial Statements
99
NOTE 16 – JOINTLY GOVERNED ORGANIZATION / RELATED PARTY
Residents of the cities of Auburn, Algona and Pacific approved in the November 7, 2006 general election the creation
of a regional fire authority pursuant to RCW 52.26. The new regional fire protection service authority, called the
Valley Regional Fire Authority (VRFA), provides first responder fire and emergency medical services to residents of
Auburn, Algona and Pacific. The VRFA is a new municipal corporation, with its own Governing Board, and is legally
separate from the three cities it serves. The Governing Board of the VRFA consists of the Mayors of the three cities
within the VRFA service area, as well as two Councilmembers from each city. Membership on the Governing Board is
made by appointment from the city council of the respective member cities. Effective January 1, 2007, all personnel,
assets, equipment and contractual obligations of the former Auburn Fire Department were transferred to the VRFA.
Similar transfers were made by the cities of Algona and Pacific.
In accordance with the interlocal agreement at time of formation, each member city retained its obligation for LEOFF 1
firefighter and Fire Relief and Pension Plan obligations. During 2015 Auburn paid $8,748, for the employer’s share of
active LEOFF 1 firefighter medical premiums and benefit payments. Premium and benefit payments for retired LEOFF 1
firefighters for 2015 were $186,860. Medical premiums and benefit payments made under the Fire Relief and Pension
Plan for 2015 were $119,698.
NOTE 17 – CONTINGENCIES AND LITIGATIONS
As of December 31, 2015, a number of claims were pending against the City for damages and legal actions. While the
outcome of these actions is uncertain, no uncovered losses are anticipated at this time with these pending claims. In
the event of a liability finding against the City, it is anticipated that any potential adverse judgment against the City
also would be subject to coverage under the City’s general liability insurance.
The City participates in a number of federal and state assisted programs. These grants are subject to audit by the
grantors or their representatives. Such audits could result in requests for reimbursement to grantor agencies for
expenditures disallowed under the terms of the grants. The City’s management believes that such disallowances, if
any, will be immaterial.
NOTE 18 – RISK MANAGEMENT & INSURANCE
Risk Management
The City is exposed to various risks of loss such as: theft and damage and destruction of assets, errors and omissions,
injuries or property damage to others, employees’ health, and natural disasters. All risk financing activities are
accounted for in the Insurance internal service fund. To insure against risks of loss the City of Auburn is a member of
the Washington Cities Insurance Authority (WCIA).
Utilizing Chapter 48.62 RCW (self-insurance regulation) and Chapter 39.34 RCW (Interlocal Cooperation Act), nine
cities originally formed WCIA on January 1, 1981. WCIA was created for the purpose of providing a pooling
mechanism for jointly purchasing insurance, jointly self-insuring, and / or jointly contracting for risk management
services. WCIA has a total of 179 Members.
New members initially contract for a three-year term, and thereafter automatically renew on an annual basis. A one-
year withdrawal notice is required before membership can be terminated. Termination does not relieve a former
member from its unresolved loss history incurred during membership.
Liability coverage is written on an occurrence basis, without deductibles. Coverage includes general, automobile,
police, public officials’ errors or omissions, stop gap, and employee benefits liability. Limits are $4 million per
occurrence self-insured layer, and $16 million per occurrence in the re-insured excess layer. The excess layer is insured
City of Auburn: 2015 CAFR Notes to the Financial Statements
100
by the purchase of reinsurance and insurance and is subject to aggregate limits. Total limits are $20 million per
occurrence subject to aggregate sublimits in the excess layers. The Board of Directors determines the limits and terms of
coverage annually.
Insurance coverage for property, automobile physical damage, fidelity, inland marine, and boiler and machinery are
purchased on a group basis. Various deductibles apply by type of coverage. Property insurance and auto physical
damage are self-funded from the members’ deductible to $750,000, for all perils other than flood and earthquake, and
insured above that amount by the purchase of insurance.
In-house services include risk management consultation, loss control field services, claims and litigation administration,
and loss analyses. WCIA contracts for the claims investigation consultants for personnel issues and land use problems,
insurance brokerage, and lobbyist services.
WCIA is fully funded by its members, who make annual assessments on a prospectively rated basis, as determined by an
outside, independent actuary. The assessment covers loss, loss adjustment, and administrative expenses. As outlined in
the interlocal, WCIA retains the right to additionally assess the membership for any funding shortfall.
An investment committee, using investment brokers, produces additional revenue by investment of WCIA’s assets in
financial instruments which comply with all State guidelines.
A Board of Directors governs WCIA, which is comprised of one designated representative from each member. The
Board elects an Executive Committee and appoints a Treasurer to provide general policy direction for the organization.
The WCIA Executive Director reports to the Executive Committee and is responsible for conducting the day to day
operations of WCIA.
No settlement has exceeded insurance coverage over the past three years.
Workers’ Compensation
Title 51 RCW requires the City to ensure payment of benefits for job-related injuries and diseases through the Workers’
Compensation fund or through self-insurance. The City become self-insured for worker’s compensation in 2014.
Contributions are made from the operating funds. At December 31, 2015 fund equity was $772,416.
NOTE 19 – SUBSEQUENT EVENTS
On March 23, 2016 the City issued a refunding bond in the amount of $3,867,214. The refunding bond proceeds
were used to establish an escrow fund and refund $680,000 (par value) of the 2005 LTGO and $3,005,000 (par
value) of the 2006A LTGO’s. The 2005 LTGO was refunded in its entirety and the 2006A bonds were partially
refunded, leaving one $265,000 (par value) payment due on December 1, 2016.
The Net Present Value Savings achieved was $395,656 or 10.23%.
The refunding bond proceeds were applied as follows:
The refunding bond matures on 12/31/2025.
City of Auburn: 2015 CAFR Required Supplemental Information
101
REQUIRED SUPPLEMENTARY INFORMATION
Schedule of Proportionate Share of the Net Pension Liability
PERS 1
As of June 30, 2015
Last 10 Fiscal Years*
2015
Employer's proportion of the net pension liability (asset) 0.192878%
Employer's proportionate share of the net pension liability $ 10,089,313
Employer's covered employee payroll $ 328,015
Employer's proportionate share of the net pension liability as a percentage of
covered employee payroll 3075.87%
Plan fiduciary net position as a percentage of the total pension liability 59.10%
* Information available for 2015 only
Schedule of Proportionate Share of the Net Pension Liability
PERS 2/3
As of June 30, 2015
Last 10 Fiscal Years*
2015
Employer's proportion of the net pension liability (asset) 0.241739%
Employer's proportionate share of the net pension liability $ 8,637,472
Employer's covered employee payroll $ 21,460,504
Employer's proportionate share of the net pension liability as a percentage of
covered employee payroll 40.25%
Plan fiduciary net position as a percentage of the total pension liability 89.20%
* Information available for 2015 only
City of Auburn: 2015 CAFR Required Supplemental Information
102
REQUIRED SUPPLEMENTARY INFORMATION
Schedule of Proportionate Share of the Net Pension Liability
LEOFF 1
As of June 30, 2015
Last 10 Fiscal Years*
2015
Employer's proportion of the net pension liability (asset) 0.103718%
Employer's proportionate share of the net pension liability $ (1,250,031)
Employer's covered employee payroll $ 0
Employer's proportionate share of the net pension liability as a percentage of
covered employee payroll 0.00%
Plan fiduciary net position as a percentage of the total pension liability 127.36%
* Information available for 2015 only
Schedule of Proportionate Share of the Net Pension Liability
LEOFF 2
As of June 30, 2015
Last 10 Fiscal Years*
2015
Employer's proportion of the net pension liability (asset) 0.354511%
Employer's proportionate share of the net pension liability $ (2,193,486)
State's proportionate share of the net pension liability (asset) associated with the
employer $ (1,450,178)
TOTAL $ (3,643,664)
Employer's covered employee payroll $ 10,336,409
Employer's proportionate share of the net pension liability as a percentage of
covered employee payroll 0.00%
Plan fiduciary net position as a percentage of the total pension liability 111.67%
* Information available for 2015 only
City of Auburn: 2015 CAFR Required Supplemental Information
103
REQUIRED SUPPLEMENTARY INFORMATION
Schedule of Employer Contributions
PERS 1
As of December 31 2015
Last 10 Fiscal Years*
2015
Statutorily or contractually required contributions $ 30,642
Contributions in relation to the statutorily or contractually required contributions $ (30,642)
Contribution deficiency (excess) $ 0
Covered employer payroll $ 306,408
Contributions as a percentage of covered employee payroll 10.00%
* Information available for 2015 only
Schedule of Employer Contributions
PERS 2/3
As of December 31 2015
Last 10 Fiscal Years*
2015
Statutorily or contractually required contributions $ 2,258,109
Contributions in relation to the statutorily or contractually required contributions $ (2,258,109)
Contribution deficiency (excess) $ 0
Covered employer payroll $ 22,130,501
Contributions as a percentage of covered employee payroll 10.20%
* Information available for 2015 only
City of Auburn: 2015 CAFR Required Supplemental Information
104
REQUIRED SUPPLEMENTARY INFORMATION
Schedule of Employer Contributions
LEOFF 2
As of December 31 2015
Last 10 Fiscal Years*
2015
Statutorily or contractually required contributions $ 551,812
Contributions in relation to the statutorily or contractually required contributions $ (551,812)
Contribution deficiency (excess) $ 0
Covered employer payroll $ 10,553,437
Contributions as a percentage of covered employee payroll % 5.23%
* Information available for 2015 only
City of Auburn: 2015 CAFR Required Supplemental Information
105
The information presented in the following required schedules was determined as part of the actuarial valuations at the
dates indicated.
Firefighter’s Pension Fund
January 1, 2015
Unfunded
Actuarial Actuarial UAAL as a
Actuarial Accrued Accrued Percentage
Actuarial Value Liabilities - Liabilities Funded Covered of Covered
Valuation Date of Assets Entry Age (UAAL) Ratio Payroll Payroll
January 1, 2003 3,514 2,428 (1,086) 144.73% 61 (1780%)
January 1, 2005 3,160 2,172 (988) 145.00% 64 (1544%)
January 1, 2007 2,868 2,802 (66) 102.00% - N/A
January 1, 2009 2,941 1,878 (1,063) 157.00% - N/A
January 1, 2011 2,780 3,052 272 91.00% - N/A
January 1, 2013 2,552 3,387 835 75.00% - N/A
January 1, 2015 2,609 3,130 521 83.00% - N/A
This plan primarily covers inactive participants. There are no current member contributions.
GASB STATEMENTS No. 25, No. 27 and No. 50 SCHEDULE OF FUNDING PROGRESS
(rounded to thousands)
Annual Required Percentage
Year Ending Employer Fire Insurance Total Employer Contributions of ARC
12/31 Contributions* Premiums Contributions* (ARC) Contributions
2010 (14,496) 63,545 49,049 (78,233) N/A
2011 (22,901) 66,375 43,474 21,469 202%
2012 (14,825) 63,205 48,380 21,469 225%
2013 (17,710) 70,036 52,326 70,351 74%
2014 219,619 77,558 297,177 70,351 422%
2015 (19,736) 75,702 55,966 47,670 117%
* Employer contributions for pensions are total contributions to the Fund net of disbursements
from the Fund for medical expenses under RCW 41.26.150 and administrative expenses.
GASB STATEMENT No. 25 SCHEDULE OF EMPLOYER CONTRIBUTIONS
City of Auburn: 2015 CAFR Required Supplemental Information
106
Retiree Medical and Long-Term Care Benefits
For LEOFF 1 Employees
December 31, 2015
Unfunded
Actuarial UAAL as a
Actuarial Actuarial Accrued Percentage
Actuarial Value Accrued Liabilities Funded Covered of Covered
Valuation Date of As s ets Liabilities (UAAL) Ratio Payroll Payroll
January 1, 2008 - 20,738 20,738 0% N/A N/A
January 1, 2011 - 26,482 26,482 0% N/A N/A
January 1, 2014 - 26,246 26,246 0% N/A N/A
GASB STATEMENTS No. 43 and No. 45
(rounded to thous ands )
SCHEDULE OF FUNDING PROGRESS
Annual Required
Year Ending Employer Contribution Percentage of
12/31 Contributions (ARC) ARC Contributed
2010 1,048,494 1,712,223 61%
2011 1,095,684 2,197,396 50%
2012 1,104,259 2,197,396 50%
2013 1,124,809 2,197,396 51%
2014 793,286 2,285,629 35%
2015 909,657 2,285,629 40%
GASB STATEMENT No. 43 SCHEDULE OF EMPLOYER CONTRIBUTIONS
City of Auburn: 2015 CAFR Fund Financial Statements and Schedules
107
NON-MAJOR GOVERNMENTAL FUNDS
The City has four types of Non-Major Governmental Funds.
Special Revenue Funds
Special revenue funds account for the proceeds of specific revenue sources and are segregated into
individual funds to ensure that expenditures are made exclusively for qualified purposes. Special
revenue funds are accounted for on a modified accrual basis. Biennial budgets are adopted with
appropriations lapsing at year-end.
Debt Service Funds
Debt service funds account for payments of principal and interest on general obligation and
special assessment long-term debt.
Capital Project Funds
Capital project funds account for the City of Auburn's financial resources used for the acquisition
or construction of major non-proprietary capital facilities.
Permanent Funds
Permanent funds are used to report resources that are legally restricted to the ex tent that only
earnings, and not principal, may be used for purposes that support City programs that are for the
benefit of the City or its citizens.
City of Auburn: 2015 CAFR Fund Financial Statements and Schedules
108
Total Total Total Total Total
Nonmajor Nonmajor Nonmajor Nonmajor Nonmajor
Special Revenue Debt Service Capital Projects Permanent Governmental
Funds Funds Funds Funds Funds
ASSETS:
Cash and Cash Equivalents 10,397,399$ 13,278$ 782,858$ 1,686,280$ 12,879,815$
Receivables:
Customer Accounts 132,013 - - - 132,013
Other Receivables 325,941 - - - 325,941
Special Assessments - 15,899 - - 15,899
Due From Other Governmental Units 109,598 - 1,642,813 - 1,752,411
Total Assets 10,964,951 29,177 2,425,671 1,686,280 15,106,079
LIABILITIES, DEFERRED INFLOWS AND FUND BALANCES:
Liabilities:
Current Payables 186,885 - 897,180 - 1,084,065
Interfund Payable (Note 5)- - 400,000 - 400,000
Other Liabilities Payable 118,137 - - - 118,137
Total Liabilities 305,022 - 1,297,180 - 1,602,202
Deferred Inflow of Resources:
Unavailable Revenue-Special Assessments - 15,899 - - 15,899
Total Deferred Inflow of Resources - 15,899 - - 15,899
Fund Balances:
Nonspendable - - - 1,585,707 1,585,707
Restricted 6,633,154 13,278 663,940 - 7,310,372
Committed 3,658,719 - - - 3,658,719
Assigned 368,056 - 464,551 100,573 933,180
Total Fund Balances 10,659,929 13,278 1,128,491 1,686,280 13,487,978
Total Liabilities, Deferred Inflows and Fund
Balances 10,964,951$ 29,177$ 2,425,671$ 1,686,280$ 15,106,079$
December 31, 2015
City of Auburn, Washington
COMBINING BALANCE SHEET
NON-MAJOR GOVERNMENT FUNDS
City of Auburn: 2015 CAFR Fund Financial Statements and Schedules
109
Total Total Total Total Total
Nonmajor Nonmajor Nonmajor Nonmajor Nonmajor
Special Revenue Debt Service Capital Projects Permanent Governmental
REVENUES:
Taxes:
Property -$ -$ 137,690$ -$ 137,690$
Retail Sales & Use 2,296,863 255,695 - - 2,552,558
Interfund Utility 608,690 - - - 608,690
Utility 1,389,924 - - - 1,389,924
Excise 111,126 - - - 111,126
Other 70,972 - - - 70,972
Intergovernmental 524,876 499,547 2,422,479 - 3,446,902
Charges for Services 2,284,182 - 10,409 41,559 2,336,150
Special Assessments - 7,494 - - 7,494
Investment Earnings 16,643 1,816 959 5,073 24,491
Miscellaneous 91,374 - 42,944 - 134,318
Total Revenues 7,394,650 764,552 2,614,481 46,632 10,820,315
EXPENDITURES:
Current:
Security of Persons & Property 676,684 - - - 676,684
Transportation 6,427,552 - - - 6,427,552
Economic Environment 548,275 - - - 548,275
Cultural and Recreation - - 49 - 49
Debt Service:
Principal - 1,245,677 - - 1,245,677
Interest - 1,743,813 - - 1,743,813
Capital Outlay - - 3,036,516 - 3,036,516
Total Expenditures 7,652,511 2,989,490 3,036,565 - 13,678,566
Excess (Deficiency) of Revenues
Over (Under) Expenditures (257,861) (2,224,938) (422,084) 46,632 (2,858,251)
OTHER FINANCING SOURCES (USES):
Transfers In (Note 5)750,000 2,227,252 464,866 - 3,442,118
Transfers Out (Note 5)(775,627) (23,892) - (30,000) (829,519)
Total Other Financing Sources (Uses)(25,627) 2,203,360 464,866 (30,000) 2,612,599
Net Change in Fund Balances (283,488) (21,578) 42,782 16,632 (245,652)
Fund Balances - Beginning 10,943,417 34,856 1,085,709 1,669,648 13,733,630
Fund Balances - Ending 10,659,929$ 13,278$ 1,128,491$ 1,686,280$ 13,487,978$
City of Auburn, Washington
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
NON-MAJOR GOVERNMENT FUNDS
For the Year Ended December 31, 2015
City of Auburn: 2015 CAFR Fund Financial Statements and Schedules
110
City of Auburn: 2015 CAFR Fund Financial Statements and Schedules
111
NON-MAJOR GOVERNMENTAL FUNDS
SPECIAL REVENUE FUNDS
Special revenue funds account for the proceeds of specific revenue sources and are segregated
into individual funds to ensure that expenditures are made exclusively for qualified purposes.
Special revenue funds are accounted for on a modified accrual basis. Annual budgets are
adopted with appropriations lapsing each year of the biennium. The City has eight non-major
special revenue funds.
The Local Street Fund
This fund was created when Auburn voters approved the Save Our Streets lid lift in 2004 and is
used to account for all revenues and expenditures related to this initiative.
Hotel/Motel Tax Fund
This fund was created to account for the hotel/motel taxes levied to support City tourist
promotion.
Arterial Street Preservation Fund
This fund was created to repair classified arterial streets and is funded from a one percent utility
tax increase that was adopted by Council in 2008.
Drug Forfeiture Fund
Money seized and forfeited from drug activity is deposited in this fund to be used exclusively
for drug investigation and enforcement.
The Housing and Community Development Fund
Accounts for projects associated with the Community Development Block Grant program.
The Recreational Trails Fund
Created for the purpose of trail development. This is a tax-supported fund.
The Business Improvement Area Fund
Accounts for special assessments on downtown merchants for ongoing services and for
improvements made to the downtown area.
Mitigation Fees
Accounts for the receipt of contracted mitigation fees for streets and fire service.
City of Auburn: 2015 CAFR Fund Financial Statements and Schedules
112
Page 1 of 2
Hotel/Arterial Housing
Local Motel Street Drug Community
Streets Tax Preservation Forfeiture Development
ASSETS:
Cash and Cash Equivalents 2,097,382$ 203,793$ 1,483,454$ 444,833$ 44,608$
Receivables:
Customer Accounts - - 132,013 - -
Other Receivables - - 325,941 - -
Due From Other Governmental Units - - 17,615 9,752 82,231
Total Assets 2,097,382 203,793 1,959,023 454,585 126,839
LIABILITIES AND FUND BALANCES:
Liabilities:
Current Payables 16,692 2,500 15,159 10,761 81,935
Other Liabilities Payable - - - - -
Total Liabilities 16,692 2,500 15,159 10,761 81,935
Fund Balances:
Restricted - 201,293 76,680 443,161 44,904
Committed 1,927,047 - 1,731,672 - -
Assigned 153,643 - 135,512 663 -
Total Fund Balances 2,080,690 201,293 1,943,864 443,824 44,904
Total Liabilities and Fund Balances 2,097,382$ 203,793$ 1,959,023$ 454,585$ 126,839$
City of Auburn, Washington
COMBINING BALANCE SHEET
NON-MAJOR SPECIAL REVENUE FUNDS
December 31, 2015
City of Auburn: 2015 CAFR Fund Financial Statements and Schedules
113
Page 2 of 2
Total
Business Nonmajor
Recreational Improvement Mitigation Special Revenue
Trails Area Fees Funds
42,529$ 52,442$ 6,028,358$ 10,397,399$
- - - 132,013
- - - 325,941
- - - 109,598
42,529 52,442 6,028,358 10,964,951
- 3,987 55,851 186,885
- - 118,137 118,137
- 3,987 173,988 305,022
42,466 48,395 5,776,255 6,633,154
- - - 3,658,719
63 60 78,115 368,056
42,529 48,455 5,854,370 10,659,929
42,529$ 52,442$ 6,028,358$ 10,964,951$
City of Auburn: 2015 CAFR Fund Financial Statements and Schedules
114
Page 1 of 2
Hotel/Arterial Housing
Local Motel Street Drug Community
Streets Tax Preservation Forfeiture Development
REVENUES:
Taxes:
Retail Sales & Use 2,296,863$ -$ -$ -$ -$
Interfund Utility - - 608,690 - -
Utility - - 1,389,924 - -
Excise - 111,126 - - -
Other - - - - -
Intergovernmental - - 76,680 24,374 417,312
Charges for Services - - 132,013 4,276 -
Investment Earnings 3,644 286 3,499 663 -
Miscellaneous - - - 91,374 -
Total Revenues 2,300,507 111,412 2,210,806 120,687 417,312
EXPENDITURES:
Current:
Security of Persons and Property - - - 216,684 -
Transportation 2,412,416 - 4,015,136 - -
Economic Environment - 77,015 - - 417,312
Total Expenditures 2,412,416 77,015 4,015,136 216,684 417,312
Excess (Deficiency) of Revenues
Over (Under) Expenditures (111,909) 34,397 (1,804,330) (95,997) -
OTHER FINANCING SOURCES (USES):
Transfers In (Note 5)150,000 - 600,000 - -
Transfers Out (Note 5)(378) - (32,786) - -
Total Other Financing Sources (Uses)149,622 - 567,214 - -
Net Change in Fund Balances 37,713 34,397 (1,237,116) (95,997) -
Fund Balances - Beginning 2,042,977 166,896 3,180,980 539,821 44,904
Fund Balances - Ending 2,080,690$ 201,293$ 1,943,864$ 443,824$ 44,904$
City of Auburn, Washington
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
NON-MAJOR SPECIAL REVENUE FUNDS
For the Year Ended December 31, 2015
City of Auburn: 2015 CAFR Fund Financial Statements and Schedules
115
Page 2 of 2
Total
Business Nonmajor
Recreational Improvement Mitigation Special Revenue
Trails Area Fees Funds
-$ -$ -$ 2,296,863$
- - - 608,690
- - - 1,389,924
- - - 111,126
- 70,972 - 70,972
6,510 - - 524,876
- - 2,147,893 2,284,182
63 60 8,428 16,643
- - - 91,374
6,573 71,032 2,156,321 7,394,650
- - 460,000 676,684
- - - 6,427,552
- 53,948 - 548,275
- 53,948 460,000 7,652,511
6,573 17,084 1,696,321 (257,861)
- - - 750,000
- - (742,463) (775,627)
- - (742,463) (25,627)
6,573 17,084 953,858 (283,488)
35,956 31,371 4,900,512 10,943,417
42,529$ 48,455$ 5,854,370$ 10,659,929$
City of Auburn: 2015 CAFR Fund Financial Statements and Schedules
116
Variance with
Final Final Budget
Original Adopted Actual Positive
(GAAP Basis)(GAAP Basis)Results (Negative)
REVENUES:
Taxes:
Property 1,600,000$ 1,600,000$ 2,296,863$ 696,863$
Investment Earnings 2,500 2,500 3,644 1,144
Total Revenues 1,602,500 1,602,500 2,300,507 698,007
EXPENDITURES:
Current:
Transportation 2,600,000 3,360,000 2,412,416 947,584
Total Expenditures 2,600,000 3,360,000 2,412,416 947,584
Excess (Deficiency) of Revenues
Over (Under) Expenditures (997,500) (1,757,500) (111,909) 1,645,591
OTHER FINANCING SOURCES (USES):
Transfers In (Note 5)150,000 150,000 150,000 -
Transfers Out (Note 5)- (10,053) (378) 9,675
Total Other Financing Sources (Uses)150,000 139,947 149,622 9,675
Net Change in Fund Balances (847,500) (1,617,553) 37,713 1,655,266
Fund Balances - Beginning 1,196,068 2,042,977 2,042,977 -
Fund Balances - Ending 348,568$ 425,424$ 2,080,690$ 1,655,266$
Budget Amounts
For the Year Ended December 31, 2015
City of Auburn, Washington
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
LOCAL STREETS SPECIAL REVENUE FUND
City of Auburn: 2015 CAFR Fund Financial Statements and Schedules
117
Variance with
Final Final Budget
Original Adopted Actual Positive
(GAAP Basis)(GAAP Basis)Results (Negative)
REVENUES:
Taxes:
Excise 87,900$ 87,900$ 111,126$ 23,226$
Charges for Services 6,000 6,000 - (6,000)
Investment Earnings 140 140 286 146
Total Revenues 94,040 94,040 111,412 17,372
EXPENDITURES:
Current:
Economic Environment 86,000 106,000 77,015 28,985
Total Expenditures 86,000 106,000 77,015 28,985
Excess (Deficiency) of Revenues
Over (Under) Expenditures 8,040 (11,960) 34,397 46,357
Net Change in fund Balances 8,040 (11,960) 34,397 46,357
Fund Balances - Beginning 139,991 166,896 166,896 -
Fund Balances - Ending 148,031$ 154,936$ 201,293$ 46,357$
Budget Amounts
For the Year Ended December 31, 2015
City of Auburn, Washington
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
HOTEL/MOTEL TAX SPECIAL REVENUE FUND
City of Auburn: 2015 CAFR Fund Financial Statements and Schedules
118
Variance with
Final Final Budget
Original Adopted Actual Positive
(GAAP Basis)(GAAP Basis)Results (Negative)
REVENUES:
Taxes:
Interfund Utility 578,000$ 578,000$ 608,690$ 30,690$
Utility 1,475,200 1,475,200 1,389,924 (85,276)
Intergovernmental 80,000 80,000 76,680 (3,320)
Charges for Services - 190,000 132,013 (57,987)
Investment Earnings 1,500 1,500 3,499 1,999
Total Revenues 2,134,700 2,324,700 2,210,806 (113,894)
EXPENDITURES:
Current:
Transportation 2,109,999 5,675,292 4,015,136 1,660,156
Total Expenditures 2,109,999 5,675,292 4,015,136 1,660,156
Excess (Deficiency) of Revenues
Over (Under) Expenditures 24,701 (3,350,592) (1,804,330) 1,546,262
OTHER FINANCING SOURCES (USES):
Transfers In (Note 5)- 612,340 600,000 (12,340)
Transfers Out (Note 5)(85,410) (95,463) (32,786) 62,677
Total Other Financing Sources (Uses)(85,410) 516,877 567,214 50,337
Net Change in Fund Balances (60,709) (2,833,715) (1,237,116) 1,596,599
Fund Balances - Beginning 521,910 3,180,980 3,180,980 -
Fund Balances - Ending 461,201$ 347,265$ 1,943,864$ 1,596,599$
Budget Amounts
For the Year Ended December 31, 2015
City of Auburn, Washington
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
ARTERIAL STREET PRESERVATION SPECIAL REVENUE FUND
City of Auburn: 2015 CAFR Fund Financial Statements and Schedules
119
Variance with
Final Final Budget
Original Adopted Actual Positive
(GAAP Basis)(GAAP Basis)Results (Negative)
REVENUES:
Taxes:
Intergovernmental 36,400$ 36,400$ 24,374$ (12,026)$
Charges for Services - - 4,276 4,276
Investment Earnings 700 700 663 (37)
Miscellaneous 60,000 60,000 91,374 31,374
Total Revenues 97,100 97,100 120,687 23,587
EXPENDITURES:
Current:
Security of Persons & Property 304,448 304,448 216,684 87,764
Total Expenditures 304,448 304,448 216,684 87,764
Excess (Deficiency of Revenues
Over (Under) Expenditures (207,348) (207,348) (95,997) 111,351
Net Change in Fund Balances (207,348) (207,348) (95,997) 111,351
Fund Balances - Beginning 505,405 539,821 539,821 -
Fund Balances - Ending 298,057$ 332,473$ 443,824$ 111,351$
Budget Amounts
For the Year Ended December 31, 2015
City of Auburn, Washington
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
DRUG FORFEITURE SPECIAL REVENUE FUND
City of Auburn: 2015 CAFR Fund Financial Statements and Schedules
120
Variance with
Final Final Budget
Original Adopted Actual Positive
(GAAP Basis)(GAAP Basis)Results (Negative)
REVENUES:
Intergovernmental 450,000$ 450,000$ 417,312$ (32,688)$
Total Revenues 450,000 450,000 417,312 (32,688)
EXPENDITURES:
Current:
Economic Environment 440,000 440,000 417,312 22,688
Total Expenditures 440,000 440,000 417,312 22,688
Excess (Deficiency) of Revenues
Over (Under) Expenditures 10,000 10,000 - (10,000)
Net Change in Fund Balances 10,000 10,000 - (10,000)
Fund Balances - Beginning 27,371 44,904 44,904 -
Fund Balances - Ending 37,371$ 54,904$ 44,904$ (10,000)$
Budget Amounts
For the Year Ended December 31, 2015
City of Auburn, Washington
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
HOUSING & COMMUNITY DEVELOPMENT SPECIAL REVENUE FUND
City of Auburn: 2015 CAFR Fund Financial Statements and Schedules
121
Variance with
Final Final Budget
Original Adopted Actual Positive
(GAAP Basis)(GAAP Basis)Results (Negative)
REVENUES:
Intergovernmental 7,100$ 7,100$ 6,510$ (590)$
Investment Earnings 30 30 63 33
Total Revenues 7,130 7,130 6,573 (557)
Excess (Deficiency) of Revenues
Over (Under) Expenditures 7,130 7,130 6,573 (557)
Net Change in Fund Balances 7,130 7,130 6,573 (557)
Fund Balances - Beginning 36,717 35,956 35,956 -
Fund Balances - Ending 43,847$ 43,086$ 42,529$ (557)$
Budget Amounts
For the Year Ended December 31, 2015
City of Auburn, Washington
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
RECREATION TRAILS SPECIAL REVENUE FUND
City of Auburn: 2015 CAFR Fund Financial Statements and Schedules
122
Variance with
Final Final Budget
Original Adopted Actual Positive
(GAAP Basis)(GAAP Basis)Results (Negative)
REVENUES:
Taxes:
Other 55,000$ 55,000$ 70,972$ 15,972$
Investment Earnings 60 60 60 -
Total Revenues 55,060 55,060 71,032 15,972
EXPENDITURES:
Current:
Economic Environment 55,000 55,000 53,948 1,052
Total Expenditures 55,000 55,000 53,948 1,052
Excess (Deficiency) of Revenues
Over (Under) Expenditures 60 60 17,084 17,024
Net Change in Fund Balances 60 60 17,084 17,024
Fund Balances - Beginning 41,212 31,371 31,371 -
Fund Balances - Ending 41,272$ 31,431$ 48,455$ 17,024$
Budget Amounts
For the Year Ended December 31, 2015
City of Auburn, Washington
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
BUSINESS IMPROVEMENT AREA SPECIAL REVENUE FUND
City of Auburn: 2015 CAFR Fund Financial Statements and Schedules
123
Variance with
Final Final Budget
Original Adopted Actual Positive
(GAAP Basis)(GAAP Basis)Results (Negative)
REVENUES:
Investment Earnings 14,100$ 14,100$ 15,717$ 1,617$
Total Revenues 14,100 14,100 15,717 1,617
Excess (Deficiency) of Revenues
Over (Under) Expenditures 14,100 14,100 15,717 1,617
OTHER FINANCING SOURCES (USES):
Transfers In (Note 5)1,300,000 2,800,000 2,800,000 -
Transfers Out (Note 5)(658,000) (658,000) (430,106) 227,894
Total Other Financing Sources (Uses)642,000 2,142,000 2,369,894 227,894
Net Change in Fund Balances 656,100 2,156,100 2,385,611 229,511
Fund Balances - Beginning 5,582,204 5,599,686 5,599,686 -
Fund Balances - Ending 6,238,304$ 7,755,786$ 7,985,297$ 229,511$
RECONCILIATION OF PERSPECTIVE DIFFERENCE BETWEEN BUDGETARY INFORMATION AND
GENERALLY ACCEPTED ACCOUNTING PRINCIPLES (GAAP):
The Cumulative Reserve Fund is combined with
the General Fund for purposes of GASB Statement 54 (7,985,297)
Fund Balance - Ending (GAAP)-$
The notes to the financial statements are an integral part of this statement.
Budget Amounts
For the Year Ended December 31, 2015
City of Auburn, Washington
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
CUMULATIVE RESERVE SPECIAL REVENUE FUND
City of Auburn: 2015 CAFR Fund Financial Statements and Schedules
124
Variance with
Final Final Budget
Original Adopted Actual Positive
(GAAP Basis)(GAAP Basis)Results (Negative)
REVENUES:
Charges for Services 990,000$ 990,000$ 2,147,893$ 1,157,893$
Investment Earnings 4,890 4,890 8,428 3,538
Total Revenues 994,890 994,890 2,156,321 1,161,431
EXPENDITURES:
Current:
Security of Person & Property 460,000 460,000 460,000 -
Total Expenditures 460,000 460,000 460,000 -
Excess (Deficiency) of Revenues
Over (Under) Expenditures 534,890 534,890 1,696,321 1,161,431
OTHER FINANCING SOURCES (USES):
Transfers In (Note 5)- 400,000 - (400,000)
Transfers Out (Note 5)(3,126,423) (3,498,156) (742,463) 2,755,693
Total Other Financing Sources (Uses)(3,126,423) (3,098,156) (742,463) 2,355,693
Net Change in Fund Balances (2,591,533) (2,563,266) 953,858 3,517,124
Fund Balances - Beginning 5,205,964 4,900,512 4,900,512 -
Fund Balances - Ending 2,614,431$ 2,337,246$ 5,854,370$ 3,517,124$
Budget Amounts
For the Year Ended December 31, 2015
City of Auburn, Washington
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
MITIGATION SPECIAL REVENUE FUND
City of Auburn: 2015 CAFR Fund Financial Statements and Schedules
125
NON-MAJOR GOVERNMENTAL FUNDS
DEBT SERVICE FUNDS
Debt service funds account for payments of principal and interest on general obligation and special
assessment long-term debt. The City of Auburn has two outstanding general obligation issues, and
two special assessment funds.
The 2010 A Series General Obligation Bonds (refunding portion)
Accounts for debt service on a Council-approved bond issue to partially advance refund the 1998
General Obligation Library Bonds.
The 2010 A Series (non-refunding portion) and B Series General Obligation Bonds
Accounts for debt service on a Council-approved bond issue to finance acquisition costs of certain
condominium units in the City Hall Annex.
The 2010 C Series and 2010 D Series General Obligation Bonds
Accounts for the debt service on a Council-approved bond issue to finance a portion of the
downtown infrastructure improvements in the City’s revitalization area.
The 2006 General Obligation Bonds
Accounts for the debt service on a Council-approved bond issue to finance improvements to the
Auburn Golf Course including a pro shop, clubhouse, and related facilities. In addition, the bonds
were used to construct and equip restaurant, banquet and related facilities for the restaurant
located at the Auburn Golf Course.
The L.I.D. Guarantee Fund
This fund provides financial security for outstanding L.I.D. bonds and special assessment debt.
Special Assessment Debt Fund
Accounts for the special assessment collections and debt service payments for all local
improvement districts located within the City.
City of Auburn: 2015 CAFR Fund Financial Statements and Schedules
126
Total
GO Library 2010 2010 Nonmajor
Refunding A & B C & D Local 2006 LID Special Debt Service
Bond Debt Annex Revitalization Golf Guarantee Assessments Funds
ASSETS:
Cash and Cash Equivalents -$ -$ -$ -$ 1,582$ 11,696$ 13,278$
Receivables:
Special Assessments - - - - - 15,899 15,899
Total Assets - - - - 1,582 27,595 29,177
LIABILITIES, DEFERRED INFLOWS AND FUND BALANCES:
Deferred Inflows of Resources:
Unavailable Revenue - Special Assessments - - - - - 15,899 15,899
Total Deferred Inflows of Resources - - - - - 15,899 15,899
Fund Balances:
Restricted - - - - 1,582 11,696 13,278
Total Fund Balances - - - - 1,582 11,696 13,278
Total Liabilities, Deferred Inflows and
Fund Balances -$ -$ -$ -$ 1,582$ 27,595$ 29,177$
City of Auburn, Washington
COMBINING BALANCE SHEET
NON-MAJOR DEBT SERVICE FUNDS
December 31, 2015
City of Auburn: 2015 CAFR Fund Financial Statements and Schedules
127
Total
GO Library 2010 2010 Nonmajor
Refunding A & B C & D Local 2006 L I D Special Debt Service
Bond Debt Annex Revitalization Golf Guarantee Assessments Funds
REVENUES:
Taxes:
Retail Sales & Use -$ -$ 255,695$ -$ -$ -$ 255,695$
Special Assessments - - - - 7,494 7,494
Intergovernmental - 377,675 121,872 - - - 499,547
Investment Earnings 38 - 155 7 29 1,587 1,816
Total Revenues 38 377,675 377,722 7 29 9,081 764,552
EXPENDITURES:
Debt Service:
Principal 235,000 535,000 220,000 250,000 - 5,677 1,245,677
Interest 44,500 1,160,917 374,617 162,211 - 1,568 1,743,813
Total Expenditures 279,500 1,695,917 594,617 412,211 - 7,245 2,989,490
Excess (Deficiency) of Revenues
Over (Under) Expenditures (279,462) (1,318,242) (216,895) (412,204) 29 1,836 (2,224,938)
OTHER FINANCING SOURCES (USES):
Transfers In (Note 5)279,462 1,318,242 216,895 412,204 449 - 2,227,252
Transfers Out (Note 5)- - - - (23,443) (449) (23,892)
Total Other Financing Sources (Uses)279,462 1,318,242 216,895 412,204 (22,994) (449) 2,203,360
Net Change in Fund Balances - - - - (22,965) 1,387 (21,578)
Fund Balances - Beginning - - - - 24,547 10,309 34,856
Fund Balances - Ending -$ -$ -$ -$ 1,582$ 11,696$ 13,278$
City of Auburn, Washington
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE
NON-MAJOR DEBT SERVICE FUNDS
For the Year Ended December 31, 2015
City of Auburn: 2015 CAFR Fund Financial Statements and Schedules
128
City of Auburn: 2015 CAFR Fund Financial Statements and Schedules
129
NON-MAJOR GOVERNMENTAL FUNDS
CAPITAL PROJECT FUNDS
Capital projects funds account for the City of Auburn's financial resources used for the acquisition
or construction of major non-proprietary capital facilities. Auburn has two non-major capital
project funds.
The Municipal Park Construction Fund
Accounts for park related construction activity and includes funding from a portion of field rental
income and adult athletic team fees.
The Local Revitalization Fund
Accounts for the City Hall Plaza and the Downtown Promenade project.
City of Auburn: 2015 CAFR Fund Financial Statements and Schedules
130
Municipal Nonmajor
Park Local Capital Project
Construction Revitalization Funds
ASSETS:
Cash and Cash Equivalents 295,889$ 486,969$ 782,858$
Due From Other Governmental Units 1,642,813 - 1,642,813
Total Assets 1,938,702 486,969 2,425,671
LIABILITIES AND FUND BALANCES:
Liabilities:
Current Payables 874,762 22,418 897,180
Interfund Payable (Note 5)400,000 - 400,000
Total Liabilities 1,274,762 22,418 1,297,180
Fund Balances:
Restricted 663,940 - 663,940
Assigned - 464,551 464,551
Total Fund Balances 663,940 464,551 1,128,491
Total Liabilities and Fund Balances 1,938,702$ 486,969$ 2,425,671$
City of Auburn, Washington
COMBINING BALANCE SHEET
CAPITAL PROJECT FUNDS
December 31, 2015
City of Auburn: 2015 CAFR Fund Financial Statements and Schedules
131
Municipal Nonmajor
Park Local Capital Project
Construction Revitalization Funds
REVENUES:
Taxes:
Property 137,690$ -$ 137,690$
Intergovernmental 2,422,479 - 2,422,479
Charges for Services 10,409 - 10,409
Investment Earnings 197 762 959
Miscellaneous 42,944 - 42,944
Total Revenues 2,613,719 762 2,614,481
EXPENDITURES:
Cultural and Recreation 49 - 49
Capital Outlay 2,942,366 94,150 3,036,516
Total Expenditures 2,942,415 94,150 3,036,565
Excess (Deficiency) of Revenues
Over (Under) Expenditures (328,696) (93,388) (422,084)
OTHER FINANCING SOURCES (USES):
Transfers In (Note 5)464,866 - 464,866
Total Other Financing Sources (Uses)464,866 - 464,866
Net Change in Fund Balances 136,170 (93,388) 42,782
Fund Balances - Beginning 527,770 557,939 1,085,709
Fund Balances - Ending 663,940$ 464,551$ 1,128,491$
City of Auburn, Washington
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
CAPITAL PROJECT FUNDS
For the Year Ended December 31, 2015
City of Auburn: 2015 CAFR Fund Financial Statements and Schedules
132
City of Auburn: 2015 CAFR Fund Financial Statements and Schedules
133
NON-MAJOR GOVERNMENTAL FUNDS
PERMANENT FUNDS
Permanent funds are used to report resources that are legally restricted to the extent that only
earnings, and not principal, may be used for purposes that support City programs that are for the
benefit of the City or its citizens. Auburn has one permanent fund.
The Cemetery Endowed Care Fund
Accounts for non-expendable investments held by the City's trustee. The interest income from
investments is available for use by the cemetery fund for capital enhancement and maintenance.
City of Auburn: 2015 CAFR Fund Financial Statements and Schedules
134
Cemetery
Endowed
Care
ASSETS:
Cash and Cash Equivalents
Non-Expendable Trust 1,686,280$
Total Assets 1,686,280
LIABILITIES AND FUND BALANCES:
FUND BALANCES:
Nonspendable 1,585,707
Assigned 100,573
Total Fund Balances 1,686,280
Total Liabilities and Fund Balances 1,686,280$
City of Auburn, Washington
BALANCE SHEET
PERMANENT FUND
December 31, 2015
City of Auburn: 2015 CAFR Fund Financial Statements and Schedules
135
Cemetery
Endowed
Care
REVENUES:
Increase to Endowment from Lot Sales 41,559$
Investment Earnings 5,073
Total Revenues 46,632
EXPENDITURES:
Excess (Deficiency) of Revenues
Over (Under) Expenditures 46,632
OTHER FINANCING SOURCES (USES):
Transfers Out (Note 5)(30,000)
Total Other Financing Sources (Uses)(30,000)
Net Change in Fund Balance 16,632
Fund Balance - Beginning 1,669,648
Fund Balance - Ending 1,686,280$
For the Year Ended December 31, 2015
City of Auburn, Washington
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
PERMANENT FUND
City of Auburn: 2015 CAFR Fund Financial Statements and Schedules
136
City of Auburn: 2015 CAFR Fund Financial Statements and Schedules
137
NON-MAJOR PROPRIETARY FUNDS
ENTERPRISE FUNDS
The City's enterprise funds are used to account for operations that are financed and operated in
a manner similar to private business operations. The goods and services these funds provide to
the general public are primarily financed by service charges. Enterprise funds are self-supporting
and use the accrual method of accounting. Auburn has two non-major enterprise funds.
The Airport Fund
Provides accounting of the activities of the Auburn Municipal Airport. Sources of income for
the fund are leases, rentals, fuel charges, investment interest, and grant funding as available.
The Cemetery Fund
Accounts for Mountain View Cemetery's operations.
City of Auburn: 2015 CAFR Fund Financial Statements and Schedules
138
Total
Nonmajor
Enterprise
Airport Cemetery Funds
ASSETS:
Current Assets:
Cash and Cash Equivalents 712,138$ 413,141$ 1,125,279$
Restricted Cash:
Customer Deposits 70,920 - 70,920
Due From Other Governmental Units 43,505 - 43,505
Inventories - 6,722 6,722
Total Current Assets 826,563 419,863 1,246,426
Noncurrent Assets:
Capital Assets:
Land 3,653,343 342,836 3,996,179
Buildings and Equipments 2,707,302 1,022,267 3,729,569
Improvements Other Than Buildings 9,616,999 1,160,718 10,777,717
Construction in Progress 342,239 - 342,239
Less: Accumulated Depreciation (6,676,863) (1,467,279) (8,144,142)
Total Capital Assets (Net of A/D)9,643,020 1,058,542 10,701,562
Total Noncurrent Assets 9,643,020 1,058,542 10,701,562
Total Assets 10,469,583 1,478,405 11,947,988
DEFERRED OUTFLOWS OF RESOURCES:
Deferred Outflow from Bond Refunding 33,237 - 33,237
Deferred Outflow Related to Pensions 2,531 37,931 40,462
35,768 37,931 73,699
LIABILITIES:
Current Liabilities:
Current Payables 89,038 44,217 133,255
Interfund Payables 183,395 - 183,395
Employee Leave Benefits - Current 2,502 15,539 18,041
General Obligation Bonds Payable - Current 150,000 - 150,000
Customer Deposits 70,314 - 70,314
Total Current Liabilities 495,249 59,756 555,005
Noncurrent Liabilities:
Employee Leave Benefits 695 4,316 5,011
General Obligation Bonds Payable 543,487 - 543,487
Net Pension Liability 10,037 172,867 182,904
Total Noncurrent Liabilities 554,219 177,183 731,402
Total Liabilities 1,049,468 236,939 1,286,407
DEFERRED INFLOWS OF RESOURCES:
Deferred Inflow Related to Pensions 2,710 41,822 44,532
NET POSITION:
Net Investment in Capital Assets 8,982,770 1,058,542 10,041,312
Unrestricted 470,403 179,033 649,436
Total Net Position 9,453,173$ 1,237,575$ 10,690,748$
City of Auburn, Washington
COMBINING STATEMENT OF NET POSITION
NON-MAJOR ENTERPRISE FUNDS
December 31, 2015
City of Auburn: 2015 CAFR Fund Financial Statements and Schedules
139
Total
Nonmajor
Enterprise
Airport Cemetery Funds
OPERATING REVENUES:
Charges for Services 33,158$ 1,084,467$ 1,117,625$
Other Operating Revenue 696,340 - 696,340
Total Operating Revenues 729,498 1,084,467 1,813,965
OPERATING EXPENSES:
Operations & Maintenance 10,249 290,904 301,153
Administration 478,761 209,524 688,285
Depreciation/Amortization 468,031 50,796 518,827
Other Operating Expenses 41 12,865 12,906
Total Operating Expenses 957,082 564,089 1,521,171
Operating Income (Loss)(227,584) 520,378 292,794
NON-OPERATING REVENUE (EXPENSE):
Interest Revenue 1,238 607 1,845
Other Non-Operating Revenues 69,420 151 69,571
Other Non-Operating Expenses (41,834) - (41,834)
Total Non-Operating Revenue (Expense)28,824 758 29,582
Income (Loss) Before Contributions & Transfers (198,760) 521,136 322,376
Transfers In (Note 5)- 30,000 30,000
Change in Net Position (198,760) 551,136 352,376
Net Position, January 1, as Previosly Reported 9,662,547 870,261 10,532,808
Change in Accounting Principle (10,614) (183,822) (194,436)
Net Position, January 1 restated 9,651,933 686,439 10,338,372
Net Position, December 31 9,453,173$ 1,237,575$ 10,690,748$
City of Auburn, Washington
COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION
NON-MAJOR ENTERPRISE FUNDS
For the Year Ended December 31, 2015
City of Auburn: 2015 CAFR Fund Financial Statements and Schedules
140
Page 1 of 2
Total
Non Major
Enterprise
Airport Cemetery Funds
CASH FLOWS FROM OPERATING ACTIVITIES:
Cash Received From Users 747,990$ 1,084,467$ 1,832,457$
Cash Paid to Suppliers for Goods & Services (414,746) (374,598) (789,344)
Cash Paid for Taxes (41) (12,865) (12,906)
Cash Paid to Employees (36,075) (627,913) (663,988)
Other Cash Received - 151 151
Net Cash Provided (Used) By Operating Activities 297,128 69,242 366,370
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:
Interfund Loan Payable (16,605) - (16,605)
Operating Grant Received 64,819 - 64,819
Other Non-Operating Revenue 4,380 - 4,380
Transfers from Other Funds - 30,000 30,000
Net Cash Provided (Used) by Non-Capital Financing Activities 52,594 30,000 82,594
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES:
Purchase of Capital Assets (348,270) (17,301) (365,571)
Capital Grant (20,479) - (20,479)
Principal Payment on Debt (135,000) - (135,000)
Interest Payment on Debt (36,675) - (36,675)
Net Cash Provided (Used) for Capital and Related Financing Activities (540,424) (17,301) (557,725)
CASH FLOW FROM INVESTING ACTIVITIES:
Interest Received 1,238 607 1,845
Net Cash Provided (Used) in Investing Activities 1,238 607 1,845
Net Increase (Decrease) in Cash and Cash Equivalents (189,464) 82,548 (106,916)
Cash and Cash Equivalents - Beginning of Year 972,522 330,593 1,303,115
Cash and Cash Equivalents - End of Year 783,058$ 413,141$ 1,196,199$
CASH AT END OF YEAR CONSISTS OF:
Cash and Cash Equivalents 712,138 413,141 1,125,279
Restricted Cash - Customer Deposits 70,920 - 70,920
Total Cash 783,058$ 413,141$ 1,196,199$
City of Auburn, Washington
COMBINING STATEMENT OF CASH FLOWS
NON-MAJOR ENTERPRISE FUNDS
For the Fiscal Year Ended December 31, 2015
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Total
Non Major
Enterprise
Airport Cemetery Funds
RECONCILIATION OF NET OPERATING INCOME TO NEW CASH
PROVIDED BY OPERATING ACTIVITIES
Operating Income (Loss)(227,584)$ 520,378$ 292,794$
ADJUSTMENTS TO RECONCILE OPERATING INCOME TO
NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES:
Depreciation 468,031 50,796 518,827
Asset (Increases) Decreases:
Miscellaneous A/R Revenue - 151 151
Inventory - 2,342 2,342
Liability Increases (Decreases):
Accounts & Vouchers Payable 38,083 (505,351) (467,268)
Deposits Payable 18,492 - 18,492
Wages & Benefits Payable 53 (1,546) (1,493)
Compensated Absences Payable 53 2,472 2,525
Total Adjustments 524,712 (451,136) 73,576
Net Cash Provided (Used) by Operating Activities 297,128$ 69,242$ 366,370$
SCHEDULE OF NONCASH INVESTING, CAPITAL AND
FINANCING ACTIVITIES
Total Non Cash Investing, Capital and Financing Activities -$ -$ -$
City of Auburn, Washington
COMBINING STATEMENT OF CASH FLOWS
NON-MAJOR ENTERPRISE FUNDS
For the Fiscal Year Ended December 31, 2015
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NON-MAJOR PROPRIETARY FUNDS
INTERNAL SERVICE FUNDS
The City of Auburn's internal service funds are used to account for the financing of goods and
services provided by one department of operation to other departments on a cost
reimbursement basis. Internal service funds are self-supporting and use the accrual method of
accounting. Auburn has five internal service funds.
The Insurance Fund
Provides a source of funds to pay unemployment claims and property and casualty claims which
fall below deductible levels.
The Workers Comp Self Insurance Fund
Provides a source of funds to pay time loss and medical benefits for employees who are affected
by an occupational injury or illness.
The Facilities Funds
Accounts for the costs of maintaining various City facilities.
The Information Services Fund
Accounts for the costs of purchasing and maintaining the City’s various computer and
telecommunications systems.
The Equipment Rental Fund
Accounts for the costs of purchasing, maintaining, and operating Auburn's fleet of vehicles and
related equipment.
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Workers Comp Information Equipment
Insurance Self Insurance Facilities Services Rental Total
ASSETS:
Current Assets:
Cash and Cash Equivalents 1,530,588$ 788,415$ 2,545,675$ 4,079,854$ 6,108,308$ 15,052,840$
Customer Accounts - - 75,436 - 1,055 76,491
Due From Other Governmental Units - - - 5,638 138 5,776
Inventories - - - - 233,296 233,296
Total Current Assets 1,530,588 788,415 2,621,111 4,085,492 6,342,797 15,368,403
Noncurrent Assets:
Capital Assets:
Buildings and Equipment - - - 6,845,152 14,224,661 21,069,813
Improvements Other than Buildings - - - 7,497 109,661 117,158
Construction in Progress - - - - 43,655 43,655
Less: Accumulated Depreciation - - - (5,486,214) (8,889,375) (14,375,589)
Total Capital Assets (Net of A/D)- - - 1,366,435 5,488,602 6,855,037
Total Noncurrent Assets - - - 1,366,435 5,488,602 6,855,037
Total Assets 1,530,588 788,415 2,621,111 5,451,927 11,831,399 22,223,440
DEFERRED OUTFLOWS OF RESOURCES:
Deferred Outflow Related to Pensions - 6,733 58,889 143,328 56,386 265,336
LIABILITIES:
Current Liabilities:
Current Payables - 10,182 210,357 380,297 229,571 830,407
Customer Deposits - - 300 - - 300
Employee Leave Benefits - Current - 4,553 35,584 81,838 27,285 149,260
Other Liabilities Payable - - - - 39,107 39,107
Total Current Liabilities - 14,735 246,241 462,135 295,963 1,019,074
Noncurrent Liabilities
Employee Leave Benefits - 1,264 9,884 22,732 7,579 41,459
Other LT Liabilities Payable - - - - 146,484 146,484
Net Pension Liability - 26,699 233,527 568,378 1,202,698 2,031,302
Total Noncurrent Liabilities - 27,963 243,411 591,110 1,356,761 2,219,245
Total Liabilities - 42,698 489,652 1,053,245 1,652,724 3,238,319
DEFERRED INFLOWS OF RESOURCES:
Deferred Inflow Related to Pensions - 7,210 63,063 153,488 112,803 336,564
NET POSITION:
Net Investment in Capital Assets - - - 1,366,435 5,303,011 6,669,446
Restricted For:
Unrestricted 1,530,588 745,240 2,127,285 3,022,087 4,819,247 12,244,447
Total Net Position 1,530,588$ 745,240$ 2,127,285$ 4,388,522$ 10,122,258$ 18,913,893$
City of Auburn, Washington
COMBINING STATEMENT OF NET POSITION
INTERNAL SERVICE FUNDS
December 31, 2015
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Workers Comp Information Equipment
Insurance Self Insurance Facilities Services Rental Total
OPERATING REVENUES:
Charges for Services -$ 815,661$ 3,447,288$ 5,290,605$ 3,504,394$ 13,057,948$
Other Operating Revenue - - 91,745 119,148 138 211,031
Total Operating Revenues - 815,661 3,539,033 5,409,753 3,504,532 13,268,979
OPERATING EXPENSES:
Operations & Maintenance - 477,943 2,662,189 4,732,771 1,554,984 9,427,887
Administration 125,131 - - - 693,239 818,370
Depreciation/Amortization - - - 624,001 927,965 1,551,966
Total Operating Expenses 125,131 477,943 2,662,189 5,356,772 3,176,188 11,798,223
Operating Income (Loss)(125,131) 337,718 876,844 52,981 328,344 1,470,756
NON-OPERATING REVENUE (EXPENSE):
Interest Revenue 1,662 899 3,738 5,474 8,345 20,118
Other Non-Operating Revenues - - 57 1,526 109,403 110,986
Gain (Loss) on Sale of Capital Assets - - - - (30,466) (30,466)
Interest Expense - - - - (2,951) (2,951)
Total Non-Operating Revenue (Expense)1,662 899 3,795 7,000 84,331 97,687
Income (Loss) Before Contributions (123,469) 338,617 880,639 59,981 412,675 1,568,443
Transfers In (Note 5)- - - 102,807 398,112 500,919
Transfers Out (Note 5)- - (659,121) - (237,267) (896,388)
Change in Net Position (123,469) 338,617 221,518 162,788 573,520 1,172,974
Net Position, January 1, as Previosly Reported 1,654,057 434,859 2,152,736 4,826,830 10,864,439 19,932,921
Change in Accounting Principle - (28,236) (246,969) (601,096) (1,315,701) (2,192,002)
Net Position, January 1 restated 1,654,057 406,623 1,905,767 4,225,734 9,548,738 17,740,919
Total Net Position - Ending 1,530,588$ 745,240$ 2,127,285$ 4,388,522$ 10,122,258$ 18,913,893$
City of Auburn, Washington
COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION
INTERNAL SERVICE FUNDS
For the Year Ended December 31, 2015
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Insurance
Workers
Comp Self
Insurance Facilities
Information
Services
Equipment
Rental Total
CASH FLOWS FROM OPERATING ACTIVITIES:
Cash Received From Users -$ 815,661$ 3,552,707$ 5,409,497$ 3,504,394$ 13,282,259$
Cash Paid to Suppliers for Goods & Services (121,830) (360,789) (1,782,712) (2,557,129) (1,461,248) (6,283,708)
Cash Paid for Taxes (3,318) - - - - (3,318)
Cash Paid to Employees - (114,441) (895,942) (2,174,768) (912,924) (4,098,075)
Other Cash Received - - - - 138 138
Net Cash Provided (Used) By Operating Activities (125,148) 340,431 874,053 677,600 1,130,360 2,897,296
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:
Operating Grant Received - - 57 - 678 735
Other Non-Operating Revenue - - - 1,526 (85,632) (84,106)
Transfers In - - - 102,807 398,112 500,919
Transfers Out - - (659,121) - (237,267) (896,388)
Net Cash Provided (Used) by Non-Capital Financing Activities - - (659,064) 104,333 75,891 (478,840)
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES:
Proceeds from Sale of Equipment - - - - 116,828 116,828
Purchase of Capital Assets - - - (619,938) (1,407,612) (2,027,550)
Proceeds from Insurance Settlement - - - - 106,842 106,842
Principal Payment on Debt - - - - 185,592 185,592
Interest Payment on Debt - - - - (2,951) (2,951)
Net Cash Provided (Used) for Capital and Related Financing Activities - - - (619,938) (1,001,301) (1,621,239)
CASH FLOW FROM INVESTING ACTIVITIES:
Interest Received 1,662 899 3,738 5,474 8,345 20,118
Net Cash Provided (Used) in Investing Activities 1,662 899 3,738 5,474 8,345 20,118
Net Increase (Decrease) in Cash and Cash Equivalents (123,486) 341,330 218,727 167,469 213,295 817,335
Cash and Cash Equivalents - Beginning of Year 1,654,074 447,085 2,326,948 3,912,385 5,895,013 14,235,505
Cash and Cash Equivalents - End of Year 1,530,588$ 788,415$ 2,545,675$ 4,079,854$ 6,108,308$ 15,052,840$
CASH AT END OF YEAR CONSISTS OF:
Cash and Cash Equivalents 1,530,588 788,415 2,545,675 4,079,854 6,108,308 15,052,840
Total Cash 1,530,588$ 788,415$ 2,545,675$ 4,079,854$ 6,108,308$ 15,052,840$
City of Auburn, Washington
COMBINING STATEMENT OF CASH FLOWS
INTERNAL SERVICE FUNDS
For the Fiscal Year Ended December 31, 2015
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Page 2 of 2
Insurance
Workers
Comp Self
Insurance Facilities
Information
Services
Equipment
Rental Total
RECONCILIATION OF NET OPERATING INCOME TO NEW CASH
PROVIDED BY OPERATING ACTIVITIES
Operating Income (Loss)(125,131)$ 337,718$ 876,844$ 52,981$ 328,344$ 1,470,756$
ADJUSTMENTS TO RECONCILE OPERATING INCOME TO
NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES:
Depreciation - - - 624,001 927,965 1,551,966
Asset (Increases) Decreases:
Accounts Receivable - - 13,674 (256) - 13,418
Inventory - - - - (17,096) (17,096)
Liability Increases (Decreases):
Accounts & Vouchers Payable (17) 2,040 (32,333) 39,318 (92,061) (83,053)
Wages & Benefits Payable - - 12,276 (56,019) (2,531) (46,274)
Compensated Absences Payable - 673 3,592 17,575 (14,261) 7,579
Total Adjustments (17) 2,713 (2,791) 624,619 802,016 1,426,540
Net Cash Provided (Used) by Operating Activities (125,148)$ 340,431$ 874,053$ 677,600$ 1,130,360$ 2,897,296$
SCHEDULE OF NONCASH INVESTING, CAPITAL AND
FINANCING ACTIVITIES
Total Non Cash Investing, Capital and Financing Activities -$ -$ -$ -$ -$ -$
City of Auburn, Washington
COMBINING STATEMENT OF CASH FLOWS
INTERNAL SERVICE FUNDS
For the Fiscal Year Ended December 31, 2015
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AGENCY FUNDS
The agency fund accounts for monies over which the City is strictly a short-term custodian.
Agency funds typically involve only the receipt, temporary investment, and remittance of
fiduciary resources to individuals, private organizations, or other governments.
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Balance Balance
1/1/2015 Additions Deductions 12/31/2015
ASSETS:
Cash and Cash Equivalents 724,783$ 1,065,196$ 1,379,571$ 410,408$
Other Current Assets 468 219,583 188,572 31,479
Due from Other Governments 30,000 - 30,000 -
Total Assets 755,251$ 1,284,779$ 1,598,143$ 441,887$
LIABILITIES:
Due to Other Government Units 755,251 2,172,504 1,859,140 441,887
Total Liabilities 755,251$ 2,172,504$ 1,859,140$ 441,887$
City of Auburn, Washington
STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
AGENCY FUND
For the Fiscal Year Ended December 31, 2015
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City of Auburn
STATISTICAL SECTION
December 31, 2015
Financial Trends Information
Financial trends schedules are intended to provide users with information to assist them in understanding and
assessing how the City’s financial position has changed over time.
Schedule 1 Net position by components ............................................................................................... 152
Schedule 2 Changes in net position ...................................................................................................... 153
Schedule 3 Fund balances, government funds ....................................................................................... 154
Schedule 4 Changes in fund balances, government funds……………………………………………..…......155
Schedule 5 Tax revenues by source, government funds ......................................................................... 156
Revenue Capacity Information
The objective of providing revenue capacity information is to help users understand and assess the factors affecting
the City’s ability to generate its most significant local source revenues.
Schedule 6 Assessed value by type ........................................................................................................ 157
Schedule 7 Property tax data ............................................................................................................... 158
Schedule 8 Property tax levies and collections ..................................................................................... 160
Schedule 9 Principal taxpayers-property taxes-sales taxes ...................................................................... 161
Schedule 10 Retail tax collections by sector ............................................................................................ 162
Debt Capacity Information
Debt capacity information is intended to assist users to understand and assess the City’s current levels of outstanding
debt and ability to issue additional debt in the future.
Schedule 11 Ratios of outstanding debt by type ..................................................................................... 163
Schedule 12 Computation of legal debt margin ...................................................................................... 164
Schedule 13 Legal debt margin ratios ...................................................................................................... 164
Schedule 14 Computation of net direct and estimated overlapping debt ................................................. 165
Schedule 15 Ratios of net general bonded debt to assessed value ............................................................ 166
Schedule 16 Pledged revenue bond coverages ........................................................................................ 167
Demographic and Economic Information
These schedules offer demographic and economic information to assist users in understanding certain aspects of the
environment within which the City operates and to provide information that facilitates comparisons of financial
statement information over time and across g overnmental units.
Schedule 17 Population, income and housing trends ............................................................................... 168
Schedule 18 Major employers ................................................................................................................ 169
Operating Information
These schedules contain service and infrastructure data to help users understand how the information in the City’s
financial report relates to the services the City provides and the activities it performs.
Schedule 19 Staffing levels by department ............................................................................................. 170
Schedule 20 Operating indicators by department…………………………………………………….………...171
Schedule 21 Capital indicators by department ........................................................................................ 172
Schedule 22 Utility customers by customer class ...................................................................................... 172
City of Auburn: 2015 CAFR Statistical Section
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2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Governmental activities:
Net Investment in Capital Assets 200,814,063$ 212,611,232$ 303,564,348$ 314,691,982$ 320,506,701$ 340,941,112$ 354,899,294$ 346,195,793$ 348,080,505$ 361,094,242$
Restricted 26,839,342 24,519,024 28,965,599 12,741,566 15,180,467 14,230,963 13,164,116 15,019,909 16,404,328 19,470,880
Unrestricted 24,148,157 26,774,107 25,955,501 43,754,879 46,734,364 45,250,090 43,245,050 47,426,352 51,898,566 40,928,090
Total governmental activities net position 251,801,562 263,904,363 358,485,448 371,188,427 382,421,532 400,422,165 411,308,460 408,642,054 416,383,399 421,493,212
Business-type activities:
Net Investment in Capital Assets 125,265,152 130,515,163 144,626,496 150,621,492 152,343,987 166,289,542 173,709,864 165,619,867 169,098,916 187,604,782
Restricted 6,987,485 1,227,395 933,914 2,071,219 4,107,128 4,153,982 4,719,058 16,839,589 14,115,610 4,764,340
Unrestricted 25,693,517 40,655,261 35,859,489 29,546,169 28,642,334 30,523,974 30,439,381 32,880,216 37,724,080 32,974,662
Total business-type activities net position 157,946,154 172,397,819 181,419,899 182,238,880 185,093,449 200,967,498 208,868,303 215,339,672 220,938,606 225,343,784
Primary government:
Net Investment in Capital Assets 326,079,215 343,126,395 448,190,844 465,313,474 472,850,688 507,230,654 528,609,158 511,815,660 517,179,421 548,699,024
Restricted 33,826,827 25,746,419 29,899,513 14,812,785 19,287,595 18,384,945 17,883,174 31,859,498 30,519,938 24,235,220
Unrestricted 49,841,674 67,429,368 61,814,990 73,301,048 75,376,698 75,774,064 73,684,431 80,306,568 89,622,646 73,902,752
Total primary government net position 409,747,716$ 436,302,182$ 539,905,347$ 553,427,307$ 567,514,981$ 601,389,663$ 620,176,763$ 623,981,726$ 637,322,005$ 646,836,996$
Source: City of Auburn, Finance Department
City of Auburn, Washington
SCHEDULE 1
NET POSITION BY COMPONENTS
Last Ten Fiscal Years
(Accrual Basis of Accounting)
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2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Expenses
Governmental activities:
General government 6,462,578$ 7,196,492$ 8,000,715$ 7,567,085$ 7,934,948$ 8,581,829$ 9,441,887$ 7,508,112$ 8,363,427$ 9,187,539$
Public safety 29,804,864 33,396,630 28,217,844 25,675,063 25,890,627 27,320,805 27,339,301 27,423,015 27,144,153 29,883,217
Transportation 7,619,268 8,077,154 12,974,861 11,471,167 11,989,752 12,123,615 15,736,610 14,861,834 16,150,877 17,324,036
Physical environment 2,418,543 3,269,334 3,096,696 3,327,836 2,498,539 2,327,911 2,535,877 2,699,301 2,976,461 2,924,046
Culture and recreation 5,729,431 6,539,281 6,271,924 7,561,569 7,307,270 7,606,584 8,310,210 9,184,289 11,094,524 12,096,651
Economic environment 1,848,988 2,400,031 2,608,980 3,000,257 2,499,631 3,135,984 2,914,335 2,346,025 2,751,869 3,044,354
Health and human services 763,156 416,456 776,224 527,029 578,247 619,172 633,175 510,285 622,374 925,299
Interest on long-term debt 203,180 163,916 226,651 408,471 1,809,322 1,685,055 2,336,960 3,795,024 3,615,211 1,986,853
Total governmental activities expenses 54,850,008 61,459,294 62,173,895 59,538,478 60,508,335 63,400,955 69,248,355 68,327,885 72,718,896 77,371,995
Business-type activities:
Water 7,647,935 7,873,191 8,565,231 8,970,215 10,042,879 8,961,736 9,655,724 11,893,094 11,992,944 13,691,529
Sewer 11,878,252 13,974,607 14,479,299 16,569,297 17,794,958 18,852,402 19,680,724 21,584,215 23,026,216 23,992,161
Storm drainage 3,852,335 4,224,881 5,226,823 7,275,072 6,994,381 6,752,021 8,025,729 7,726,467 7,668,072 8,308,559
Solid waste 9,936,222 10,368,901 10,781,426 11,019,606 9,894,429 9,957,943 11,305,322 12,535,078 12,760,313 12,907,832
Golf course 1,020,070 1,576,126 1,958,703 1,909,758 1,844,108 1,903,836 1,912,174 1,933,597 - -
Non-major business-type activities 1,618,285 1,735,118 1,720,603 1,666,754 1,781,204 2,010,776 1,954,104 1,857,252 1,924,874 2,062,695
Total business-type activities expenses 35,953,099 39,752,824 42,732,085 47,410,702 48,351,960 48,438,714 52,533,777 57,529,703 57,372,419 60,962,776
Total primary government expenses 90,803,107$ 101,212,118$ 104,905,980$ 106,949,180$ 108,860,294$ 111,839,669$ 121,782,132$ 125,857,588$ 130,091,315$ 138,334,771$
Program revenues
Governmental activities:
Charges for services
General Government 820,585$ 1,126,258$ 2,316,125$ 814,095$ 1,168,574$ 1,010,911$ 897,521$ 893,326$ 1,160,198$ 1,243,263$
Public Safety 2,514,867 3,100,973 2,674,777 2,854,530 2,938,942 3,867,013 1,016,191 2,103,823 2,273,903 1,993,117
Transportation 631,340 1,930,504 1,272,751 1,587,850 960,532 1,042,147 1,819,851 1,967,778 1,660,270 1,446,026
Physical Environment 436,503 576,539 257,780 147,996 86,306 103,590 36,766 398,564 276,632 384,485
Culture and Recreation 881,318 1,245,122 917,544 1,048,390 962,558 1,182,688 880,380 873,970 2,876,185 3,052,599
Economic Environment 2,590,763 2,070,534 1,638,579 1,654,692 1,732,397 2,294,916 3,266,188 3,586,844 3,087,853 2,989,579
Health and human services - - - 989 449 7,528 - - - -
Total charges for services 7,875,376 10,049,930 9,077,556 8,108,542 7,849,758 9,508,793 7,916,897 9,824,305 11,335,041 11,109,069
Operating grants and contributions 2,714,324 2,923,968 2,567,788 3,001,401 3,022,835 1,724,711 3,560,707 1,967,252 1,333,652 4,234,309
Capital grants and contributions 5,174,350 9,213,115 94,905,563 12,806,049 10,702,132 19,730,140 17,835,784 5,955,062 6,001,230 19,526,548
Total governmental activities program revenues 15,764,050 22,187,013 106,550,907 23,915,992 21,574,725 30,963,644 29,313,388 17,746,619 18,669,923 34,869,926
Business-type activities:
Charges for services 36,226,324 38,784,127 39,883,386 42,338,079 43,461,742 45,045,488 50,710,688 57,533,735 60,332,817 63,391,139
Operating grants and contributions 47,961 43,263 55,024 87,454 70,841 116,735 97,052 90,361 111,025 106,286
Capital grants and contributions 3,988,202 12,479,500 10,670,660 1,992,259 7,391,111 15,981,735 7,248,835 5,483,344 5,070,810 5,821,857
Total business-type activities program revenues 40,262,487 51,306,890 50,609,070 44,417,792 50,923,694 61,143,958 58,056,575 63,107,440 65,514,652 69,319,282
Total primary government program revenues 56,026,537 73,493,903 157,159,977 68,333,784 72,498,419 92,107,602 87,369,963 80,854,059 84,184,575 104,189,208
Net (expense)/revenue
Governmental activities (39,085,958) (39,272,281) 44,377,012 (35,622,486) (38,933,610) (32,437,311) (39,934,967) (50,581,266) (54,048,973) (42,502,069)
Business-type activities 4,309,388 11,554,066 7,876,985 (2,992,910) 2,571,734 12,705,244 5,522,798 5,577,737 8,142,233 8,356,506
Total primary government net expense (34,776,570)$ (27,718,215)$ 52,253,997$ (38,615,396)$ (36,361,876)$ (19,732,067)$ (34,412,169)$ (45,003,529)$ (45,906,740)$ (34,145,563)$
General revenues and other changes in net position
Governmental activities:
Taxes:
Property taxes 15,186,456$ 16,164,073$ 10,804,825$ 13,362,672$ 14,766,470$ 15,204,611$ 14,970,136$ 14,490,790$ 15,867,838$ 17,271,705$
Retail sales and use tax 17,784,374 18,958,484 17,620,661 14,727,496 15,657,081 16,213,244 16,679,278 18,335,157 19,744,684 21,125,730
Interfund utility taxes 1,983,652 2,095,901 2,507,213 3,437,526 2,788,083 2,948,297 3,281,816 3,892,250 4,068,667 4,260,831
Utility taxes 5,893,041 6,073,429 8,075,355 9,071,485 8,886,964 9,049,689 8,856,498 9,156,636 9,040,015 8,838,179
Excise taxes 4,568,549 3,862,692 3,477,517 2,310,076 1,389,030 1,859,738 2,141,620 2,555,850 2,888,797 4,999,517
Other taxes 1,859,428 2,005,836 2,949,430 4,607,584 4,622,138 4,644,909 4,679,333 4,429,090 4,601,925 4,722,482
Investment earnings 2,454,694 2,993,174 1,589,837 570,798 379,316 224,593 178,618 121,687 105,117 118,399
Miscellaneous 69,037 (406,847) 2,751,495 67,223 214,190 775,969 547,391 (4,625,627) 178,482 194,600
Transfers (570,588) (371,660) 427,740 170,605 1,463,444 (483,107) (513,428) (218,230) 5,294,793 (462,955)
Total governmental activities 49,228,643 51,375,082 50,204,073 48,325,465 50,166,715 50,437,943 50,821,262 48,137,603 61,790,318 61,068,488
Business-type activities:
Investment earnings 1,574,444 2,098,417 1,242,363 312,618 158,211 101,694 82,903 68,400 51,261 70,560
Miscellaneous 1,602,274 427,522 330,472 3,669,878 1,588,068 2,584,004 1,781,676 763,717 2,700,233 1,881,835
Transfers 570,588 371,660 (427,740) (170,605) (1,463,444) 483,107 513,428 218,230 (5,294,793) 462,955
Total business-type activities:3,747,306 2,897,599 1,145,095 3,811,891 282,835 3,168,805 2,378,007 1,050,347 (2,543,299) 2,415,350
Total primary government 52,975,949$ 54,272,681$ 51,349,168$ 52,137,356$ 50,449,550$ 53,606,748$ 53,199,269$ 49,187,950$ 59,247,019$ 63,483,838$
Change in net position Before Change in Accounting Principle
Governmental activities 10,142,685 12,102,801 94,581,085 12,702,979 11,233,105 18,000,632 10,886,295 (2,443,663) 7,741,345 18,566,419
Business-type activities 8,056,694 14,451,665 9,022,080 818,981 2,854,569 15,874,049 7,900,805 6,628,084 5,598,934 10,771,856
Total primary government 18,199,379$ 26,554,466$ 103,603,165$ 13,521,960$ 14,087,674$ 33,874,681$ 18,787,100$ 4,184,421$ 13,340,279$ 29,338,275$
Change in Accounting Principle
Governmental activities - - - - - - - (222,743) - (13,456,606)
Business-type activities - - - - - - - (156,715) - (6,366,678)
Total primary government -$ -$ -$ -$ -$ -$ -$ (379,458)$ -$ (19,823,284)$
Change in net position After Change in Accounting Principle
Governmental activities 10,142,685 12,102,801 94,581,085 12,702,979 11,233,105 18,000,632 10,886,295 (2,666,406) 7,741,345 5,109,813
Business-type activities 8,056,694 14,451,665 9,022,080 818,981 2,854,569 15,874,049 7,900,805 6,471,369 5,598,934 4,405,178
Total primary government 18,199,379$ 26,554,466$ 103,603,165$ 13,521,960$ 14,087,674$ 33,874,681$ 18,787,100$ 3,804,963$ 13,340,279$ 9,514,991$
Source: City of Auburn, Finance Department
City of Auburn, Washington
SCHEDULE 2
CHANGES IN NET POSITION
Last Ten Fiscal Years
(Accrual Basis of Accounting)
City of Auburn: 2015 CAFR Statistical Section
154
2006 2007 2008 2009 2010 2011 (1)2012 2013 2014 2015
General Fund
Unreserved 14,448,328$ 14,462,720$ 13,071,091$ 13,237,851$ 15,382,354$ -$ -$ -$ -$ -$
Nonspendable -$ 370,400.0 127 127 127
Assigned 7,082,130$ 5,935,567.0 5,892,611 4,045,598 7,284,159
Unassigned 14,193,365$ 17,395,933.0 17,751,778 20,914,093 20,267,776
Total General Fund 14,448,328 14,462,720 13,071,091 13,237,851 15,382,354 21,275,495 23,701,900 23,644,516 24,959,818 27,552,062
All other governmental funds
Reserved 1,376,798 1,501,033 1,507,565 1,538,038 1,592,378
Unreserved, Reported In:
Special Revenue Funds 10,738,431 13,124,661 14,463,370 15,184,058 15,486,918
Capital Projects Funds 14,727,423 9,873,331 12,990,032 10,422,360 12,589,604
Permanent Funds 188,524 170,983 144,396 153,503 132,717
Total Unreserved 25,654,378 23,168,975 27,597,798 25,759,921 28,209,239 -
Nonspendable 1,453,540 1,475,580 1,536,316 1,574,148 1,585,707
Restricted 12,781,743 11,688,536 13,483,593 14,830,180 17,885,173
Committed 3,134,449 3,258,257 3,242,662 5,066,181 3,658,719
Assigned 3,120,372 2,388,684 4,976,833 4,725,119 4,755,182
Total All Other Governmental Funds 27,031,176$ 24,670,008$ 29,105,363$ 27,297,959$ 29,801,617$ 20,490,104$ 18,811,057$ 23,239,404$ 26,195,628$ 27,884,781$
(1)GASB Statement No. 54 was implemented in FY 2011. See Note 1E of the Notes to the Basic Financial Statements.
Source: City of Auburn, Finance Department
City of Auburn, Washington
SCHEDULE 3
FUND BALANCES, GOVERNMENT FUNDS
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
City of Auburn: 2015 CAFR Statistical Section
155
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Revenues
Taxes 44,867,161$ 46,721,651$ 43,781,530$ 42,514,006$ 43,069,695$ 44,812,975$ 46,003,582$ 48,545,041$ 51,718,489$ 56,632,337$
Licenses and permits 1,683,320 1,606,950 1,110,722 1,326,875 1,311,916 1,769,516 2,344,643 3,041,948 2,400,662 2,074,432
Intergovernmental 6,831,240 5,766,484 8,369,888 9,616,067 9,656,529 16,174,149 20,045,299 11,854,984 9,379,699 13,620,446
Charges for services 3,659,773 5,017,224 3,784,544 3,473,199 3,073,168 2,938,815 4,006,762 3,891,776 5,717,712 7,321,295
Fines and forfeits 1,054,201 2,155,120 2,059,771 1,911,034 2,472,411 1,940,326 1,592,957 1,441,603 1,258,408 938,775
Special assessments 75,574 52,291 57,402 107,597 43,502 32,972 39,115 40,772 472,800 7,494
Investment earnings 1,477,368 2,456,291 1,363,375 484,696 386,890 237,056 200,826 144,151 135,709 117,942
Miscellaneous 1,865,079 877,473 1,296,349 1,142,428 3,023,589 2,322,580 871,191 621,673 1,691,274 1,890,419
Total revenues 61,513,716 64,653,484 61,823,581 60,575,902 63,037,699 70,228,389 75,104,375 69,581,948 72,774,753 82,603,140
Expenditures
General government 6,062,037 6,834,084 7,719,205 7,864,410 7,770,957 8,310,037 8,761,452 7,300,667 7,712,018 8,661,592
Public safety 29,148,278 33,568,753 26,023,912 25,762,116 24,597,986 27,399,406 24,039,435 27,146,590 27,264,294 29,164,772
Transportation 9,403,147 7,385,929 8,910,967 9,850,579 10,054,434 16,059,156 20,766,134 15,119,530 8,979,583 16,323,425
Physical environment 2,435,201 3,352,466 3,490,636 3,192,089 2,480,641 2,290,328 2,526,526 2,855,908 3,086,738 2,991,145
Economic environment 1,928,978 2,142,282 2,530,827 3,028,684 2,597,849 3,138,590 2,876,558 2,692,389 2,783,898 3,066,674
Health and human services 763,156 416,456 776,224 527,029 568,911 616,717 616,583 631,997 626,681 925,299
Culture and recreation 5,016,554 6,571,275 6,296,743 6,622,546 6,663,881 6,918,623 7,228,345 7,925,325 9,759,110 10,700,680
Capital outlay (1)3,822,895 7,346,316 4,778,334 30,338,508 8,486,382 8,597,944 4,007,018 2,746,599 3,394,886 3,580,304
Debt service:
Principal 420,631 435,093 456,655 479,661 26,683,671 1,208,512 1,219,137 2,238,181 2,704,468 1,713,940
Interest / other 247,551 203,266 264,997 296,241 1,775,746 1,761,334 2,245,858 2,709,768 2,892,281 1,801,109
Total expenditures 59,248,428 68,255,920 61,248,500 87,961,863 91,680,457 76,300,647 74,287,046 71,366,954 69,203,957 78,928,940
Excess of revenues
over (under) expenditures 2,265,288 (3,602,436) 575,081 (27,385,961) (28,642,758) (6,072,258) 817,329 (1,785,006) 3,570,796 3,674,200
Other financing sources (uses)
Transfers in 8,873,200 6,103,144 7,386,082 6,994,306 9,442,727 7,410,926 6,643,116 4,776,100 5,309,769 7,100,830
Transfers out (9,554,816) (5,542,988) (7,993,842) (6,997,801) (7,745,568) (6,242,333) (7,005,097) (4,450,925) (5,003,448) (6,668,626)
Capital leases - 695,504 17,728 24,549,186 - - - - - -
Insurance recoveries - - - 114,607 200,642 154,200 291,210 192,898 136,585 153,041
Issuance of debt 142,313 - 360,000 957,278 31,172,273 - - 3,044,491 240,366 -
Issuance of refunding bond - - - - 2,150,000 - - - - -
Debt Premium - - - - 305,844 - - - - -
Payment to escrow agent - refunded bond - - - - (2,235,000) - - - - -
Sales of capital assets 127,959 - 2,698,677 127,741 - 1,331,092 800 2,593,405 17,458 21,952
Total other financing sources (uses)(411,344) 1,255,660 2,468,645 25,745,317 33,290,918 2,653,885 (69,971) 6,155,969 700,730 607,197
Net change in fund balances 1,853,944$ (2,346,776)$ 3,043,726$ (1,640,644)$ 4,648,159$ (3,418,373)$ 747,358$ 4,370,963$ 4,271,526$ 4,281,397$
Debt service as a percentage of noncapital 1.39%1.12%1.42%1.54%37.50%5.44%6.64%8.71%10.68%5.50%
expenditures
(1)Capital outlay reported in governmental funds for 2015 are $3,580,304 plus $11,401,835 which is reported for each functional
activity with the other funds results in total capital outlay of $14,982,139 as reported on the Reconciliation of the
Statement of Renevues, Expenditures, and Changes in Fund Balances of Government Funds to the Statement of Activities.
Source: City of Auburn, Finance Department
City of Auburn, Washington
SCHEDULE 4
CHANGES IN FUND BALANCES, GOVERNMENT FUNDS
Last Ten Fiscal Years
(Modified Accrual Basisi of Accouting)
City of Auburn: 2015 CAFR Statistical Section
156
Fiscal Sales Interfund
Year Property & Use Utility Utility Excise Other Total
2006 14,582,829 17,784,374 1,983,652 5,893,041 4,568,549 54,716 44,867,161
2007 15,666,016 18,958,484 2,095,901 6,073,429 3,862,692 65,129 46,721,651
2008 12,040,124 17,620,661 2,507,213 8,075,355 3,477,517 60,660 43,781,530
2009 12,914,943 14,727,496 3,437,526 9,071,485 2,310,076 52,480 42,514,006
2010 14,283,303 15,657,081 2,788,083 8,886,964 1,389,030 65,234 43,069,695
2011 14,683,329 16,213,244 2,948,297 9,049,689 1,859,738 58,678 44,812,975
2012 14,987,636 16,679,278 3,281,816 8,856,498 2,141,620 56,734 46,003,582
2013 14,535,673 18,335,157 3,892,250 9,156,636 2,555,850 69,475 48,545,041
2014 15,933,338 19,744,684 4,068,667 9,040,015 2,888,797 42,988 51,718,489
2015 17,337,108 21,125,730 4,260,831 8,838,179 4,999,517 70,972 56,632,337
Change
2006-2015 18.9%18.8%114.8%50.0%9.4%29.7%26.2%
Source: City of Auburn, Finance Department
TAX REVENUES BY SOURCE, GOVERNMENT FUNDS
Last Ten Fiscal Years
SCHEDULE 5
City of Auburn, Washington
$0
$10,000
$20,000
$30,000
$40,000
$50,000
$60,000
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015ThousandsFigure 5: Tax Revenues by Source
2006-2015
Excise & other
Utility
Interfund utility
Sales & use
Property
City of Auburn: 2015 CAFR Statistical Section
157
State Total Total
Fiscal Property Personal Land and Assessed Direct
Year and Other Property Building Value Rate
2006 101,419 607,875 5,055,734 5,765,028 2.73
2007 107,302 635,352 5,783,641 6,526,295 1.48
2008 112,101 640,004 5,804,585 6,556,690 1.49
2009 121,918 764,857 7,837,089 8,723,864 (*)1.49
2010 114,661 715,534 6,935,683 7,765,878 1.82
2011 126,415 726,944 6,711,148 7,564,507 1.93
2012 124,204 709,024 6,392,321 7,225,550 2.08
2013 124,230 745,891 6,098,598 6,968,719 2.10
2014 132,854 880,015 6,409,300 7,422,169 2.17
2015 146,941 911,493 7,308,219 8,366,653 2.08
Source: King County Dept of Assessments & Pierce County Assessor-Treasurer
(*) In 2009, Total Assessed Value increased significantly due to annexations of Lea Hill
and West Hill areas
(Amounts Expressed in Thousands)
City of Auburn, Washington
SCHEDULE 6
ASSESSED VALUE BY TYPE
Last Ten Fiscal Years
$0
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
$7,000,000
$8,000,000
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Figure 6: Assessed Value by Type
2006 -2015
State property
Personal property
Land and building
City of Auburn: 2015 CAFR Statistical Section
158
Page 1 of 2
Item 2006 2007 2008 (2)2009
Assessed and estimated actual values (1)
Estimated and actual value (in thousands)5,765,028$ 6,526,295$ 6,556,690$ 8,723,864$
Assessed value (in thousands)5,765,028 6,526,295 6,556,690 8,723,864
Ratio of assessed to actual 100%100%100%100%
Property tax rates (1)
Direct regular and special
General fund 2.73076$ 1.48385$ 1.48385$ 1.48678$
Debt service funds - - - -
Subtotal 2.73076 1.48385 1.48385 1.48678
Overlapping regular and special (1)
Auburn School District 4.94903$ 4.40970$ 4.40970$ 4.37709$
King County 1.28956 1.20770 1.20770 1.09772
State of Washington 2.32535 2.13233 2.13233 1.96268
Port of Seattle 0.23158 0.22359 0.22359 0.19700
Emergency Medical Services 0.20621 0.30000 0.30000 0.27404
Hospital District 0.55652 0.50854 0.50854 0.47141
King County Library District 0.50027 0.45336 0.45336 0.41736
Valley Regional Fire Authority - 1.00000 1.00000 1.10995
King County Flood Zone - 0.10000 0.10000 0.91230
King County Ferry District - 0.05500 0.05500 0.05018
Subtotal 10.05852 10.39022 10.39022 10.86973
Total direct and overlapping 12.78928$ 11.87407$ 11.87407$ 12.35651$
Sources:
(1) King County and Pierce County Deparments of Assessments; real and personal property
has been assessed at 100% of the estimated actual value.
(2) The 2008 decrease in property tax levy to $1.48 is due to the incorporation of the Valley
Regional Fire Authority effective 1/1/2007. The VRFA will assess its own property tax levy
in 2008, partially offsetting what was previously levied by the City.
City of Auburn, Washington
SCHEDULE 7
PROPERTY TAX DATA
Last Ten Fiscal Years
$1.00
$1.50
$2.00
$2.50
$3.00
2006 2007 2008
(2)
2009 2010 2011 2012 2013 2014 2015Per $1,000 of Assessed ValuationFigure 7a: Ten Years City Property Tax Rates
2006 -2015
City of Auburn: 2015 CAFR Statistical Section
159
Page 2 of 2
2010 2011 2012 2013 2014 2015
7,765,878$ 7,564,507$ 7,225,550$ 6,968,719$ 7,422,169$ 8,366,653$
7,765,878 7,564,507 7,225,550 6,968,719 7,422,169 8,366,653
100%100%100%100%100%100%
1.82336$ 1.93458$ 2.07527$ 2.10000$ 2.16739$ 2.08085$
- - - - - -
1.82336 1.93458 2.07527 2.10000 2.16739 2.08085
5.09382$ 5.99562$ 6.14004$ 6.62190$ 6.50262$ 6.14079$
1.28499 1.33816 1.41588 1.54051 1.51605 1.34522
2.22253 2.27990 2.42266 2.56720 2.47044 2.28514
0.21597 0.22366 0.22982 0.23324 0.21533 0.18885
0.30000 0.30000 0.30000 0.30000 0.33500 0.30217
0.53290 0.55753 0.50000 0.50000 0.50000 0.50000
0.48526 0.56621 0.56992 0.56743 0.56175 0.50276
1.17910 1.17977 1.18925 1.20479 1.20294 1.18043
0.10514 0.10976 0.11616 0.13210 0.15369 0.13860
0.00348 0.00360 0.00372 0.00378 0.00349 -
11.42319 12.55421 12.88745 13.67095 13.46131 12.58396
13.24655$ 14.48879$ 14.96272$ 15.77095$ 15.62870$ 14.66481$
$0.00
$2.00
$4.00
$6.00
$8.00
$10.00
$12.00
$14.00
2006 2007 2008
(2)2009 2010 2011 2012 2013 2014 2015Dollars (Rate Per Thousand)Figure 7b: Property Tax Rates
Last Ten Fiscal Years
Hospital District
King County Ferry District
King County Flood Zone
Valley Regional Fire Authority
King County Library District
Emergency Medical Services
Port of Seattle
State of Washington
King County
Auburn School District
City of Auburn: 2015 CAFR Statistical Section
160
Total Tax Collections
Fiscal Levy for in Subsequent Current Year
Year Fiscal Year Amount % of Levy Years Amount % of Levy Levy Balance
King County:
2006 13,399,723 13,164,248$ 98.2%234,987 13,399,235$ 100.0%488$
2007 13,843,007 13,605,301 98.3%237,480 13,842,781 100.0%227
2008 9,551,512 9,406,398 98.5%144,084 9,550,482 100.0%1,030
2009 11,680,648 11,390,684 97.5%280,241 11,670,925 99.9%9,723
2010 12,714,025 12,459,564 98.0%250,898 12,710,462 100.0%3,563
2011 13,071,507 12,846,996 98.3%223,115 13,070,111 100.0%1,396
2012 13,392,182 13,167,731 98.3%217,136 13,384,867 99.9%7,315
2013 12,890,658 12,673,712 98.3%195,423 12,869,135 99.8%21,523
2014 14,171,043 13,970,560 98.6%142,398 14,112,958 99.6%58,085
2015 15,393,537 15,226,048 98.9%- 15,226,048 98.9%167,489
270,839$
Pierce County:
2006 1,242,038 1,220,642$ 98.3%21,376 1,242,018$ 100.0%20$
2007 1,851,622 1,816,706 98.1%34,876 1,851,582 100.0%40
2008 1,226,764 1,177,665 96.0%49,073 1,226,738 100.0%26
2009 1,264,380 1,223,668 96.8%40,688 1,264,356 100.0%25
2010 1,489,759 1,451,377 97.4%38,352 1,489,729 100.0%30
2011 1,425,411 1,401,537 98.3%23,838 1,425,375 100.0%36
2012 1,495,420 1,478,223 98.9%17,038 1,495,262 100.0%159
2013 1,484,398 1,471,129 99.1%11,212 1,482,341 99.9%2,057
2014 1,595,567 1,586,010 99.4%6,605 1,592,615 99.8%2,951
2015 1,746,418 1,738,447 99.5%- 1,738,447 99.5%7,972
13,315$
Total current levy balance 284,154$
Source: King County Finance and Business Operations Division
Pierce County Budget and Finance Department
Fiscal Year of the Levy Total Collections to Date
City of Auburn, Washington
SCHEDULE 8
PROPERTY TAX LEVIES AND COLLECTIONS
Last Ten Fiscal Years
Collected Within the
95.0%
95.5%
96.0%
96.5%
97.0%
97.5%
98.0%
98.5%
99.0%
99.5%
100.0%
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
FIGURE 8: TEN YEARS COLLECTION OF LEVIED PROPERTY TAXES
Last Ten Fiscal Years
Collection percentage
within the fiscal year of
the levy
Total collection
percentage
City of Auburn: 2015 CAFR Statistical Section
161
Percentage Percentage
of Total City of Total City
Assessed Taxable Assessed Taxable
Taxpayer Value Rank Assessed Value Value Rank Assessed Value
Boeing 549,141,832$ 1 6.56%422,433,478$ 1 7.33%
Glimcher Supermall Venture 102,455,418 2 1.22%101,498,338 3 1.76%
Puget Sound Energy 92,835,660 3 1.11%47,304,914 8 0.82%
EProperty Tax Inc.79,001,900 4 0.94%72,209,900 4 1.25%
Safeway 74,053,520 5 0.89%141,423,418 2 2.45%
Belara Communities LLC 54,061,800 6 0.65%-
PPF Industrial (formerly UPS Supply Chain Solutions)*45,129,700 7 0.54%53,372,100 7 0.93%
Wal-Mart Property 27,591,900 8 0.33%-
Muckleshoot Indian Tribe 20,830,100 9 0.25%57,037,500 5 0.99%
Qwest Corporation 20,179,099 10 0.24%22,972,373 10 0.40%
Auburn Warehouse LLC - 53,372,100 6 0.93%
Complex Property Advisors Corp.- 45,488,402 9 0.79%
TOTALS 1,065,280,929$ 12.73%1,017,112,523$ 17.64%
* In the 2006 CAFR, this was reported as Shanna Lehman.
Source: King County and Pierce County Departments of Assessments
Total assessed value for 2015:8,366,652,723$
Total assessed value for 2006:5,765,028,000$
2015 2006
City of Auburn, Washington
SCHEDULE 9a
PRINCIPAL TAXPAYERS-PROPERTY TAXES
Current Year and Nine Years Ago
0%
5%
10%
15%
20%
25%
2006 2015
FIGURE 9a-1: TOP TAXPAYER ASSESSED VALUE AS A
PERCENTAGE OF TOTAL ASSESSED VALUE
Current Year and Nine Years Ago
0%
5%
10%
15%
20%
25%
2006 2015
FIGURE 9a-2: TOP 10 TAXPAYERS ASSESSED VALUE AS A
PERCENTAGE OF TOTAL ASSESSED VALUE
Current Year and Nine Years Ago
Percentage Percentage
Sales of Total City Sales of Total City
Tax Sales Taxes Tax Sales Taxes
Received Sector (1)Rank Received Received Sector (1)Rank Received
503,003$ Transportation Manufacturing 1 3.0%467,764$ Automotive 1 2.9%
466,181 Automotive 2 2.8%438,316 General Retail 2 2.7%
449,995 General Retail 3 2.7%400,086 General Retail 3 2.5%
444,616 Automotive 4 2.6%332,136 General Retail 4 2.1%
349,222 Automotive 5 2.1%320,856 Automotive 5 2.0%
323,965 Automotive 6 1.9%254,191 Automotive 6 1.6%
266,295 Bldg. Material & Garden 7 1.6%248,825 Automotive 7 1.5%
254,760 General Retail 8 1.5%233,612 General Retail 8 1.4%
248,552 Construction of Buildings 9 1.5%225,363 General Retail 9 1.4%
231,888 Automotive 10 1.4%224,087 Distribution 10 1.4%
3,538,477$ 21.0%3,145,236$ 19.4%
Source: Washington State Department of Revenue
(1) It is illegal to disclose specific taxpayer sales tax information, so the above information is being provided
without identification
2015 2006
City of Auburn, Washington
SCHEDULE 9b
PRINCIPAL TAXPAYERS-SALES TAXES
Current Year and Ten Years Ago
City of Auburn: 2015 CAFR Statistical Section
162
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
RETAIL TRADE SECTOR
Automotive/gas 3,428$ 3,643$ 3,255$ 2,559$ 2,553$ 2,785$ 3,019$ 3,136$ 3,309$ 3,707$
Furniture 263 268 241 220 194 218 226 235 254 254
Electronics & appliances 288 262 242 132 121 127 145 174 237 295
Building materials 594 615 521 358 389 383 425 447 502 590
Food stores 346 378 360 352 354 331 341 335 353 368
Health & personal care 130 143 152 150 144 148 149 174 188 221
Apparel 874 899 873 781 752 754 772 889 1,009 1,080
General merchandise 941 974 872 833 801 968 967 974 955 988
Misc retail trade 939 1,334 1,234 755 834 851 897 990 1,182 1,193
7,803 8,516 7,750 6,140 6,142 6,566 6,943 7,354 7,989 8,695
SERVICE SECTOR
Information 507 531 489 457 979 481 396 446 487 526
Finance & insurance 84 85 85 83 68 66 53 91 88 95
Real estate, rental, leasaing 311 330 394 304 288 304 326 279 315 334
Professional, scientific, technical 116 162 146 200 191 175 173 184 216 195
Administrative, supply & remediation services 195 301 261 261 239 295 334 336 350 383
Educational 81 87 91 42 56 53 54 50 49 60
Healthcare & social serivces 33 88 98 61 37 41 115 33 66 82
Arts & entertainment 126 172 171 147 154 149 153 149 158 208
Accomodation & food service 833 870 915 827 806 839 921 979 1,067 1,159
Other services 492 502 457 485 493 482 530 507 526 603
2,779 3,128 3,107 2,867 3,310 2,882 3,056 3,054 3,322 3,646
OTHER SECTORS
Construction 2,453 2,240 1,647 1,368 1,322 1,296 1,221 1,943 1,754 2,297
Manufacturing 486 625 643 383 411 583 405 624 1,163 862
Transportation 26 22 76 31 29 77 55 46 71 66
Wholesaling 2,571 2,943 2,306 1,073 1,180 1,260 1,297 1,279 1,205 1,229
Other business 72 143 72 47 128 224 61 64 120 72
Subtotal - other sectors 5,607 5,973 4,744 2,902 3,071 3,439 3,038 3,956 4,312 4,525
GRAND TOTAL 16,189$ 17,617$ 15,601$ 11,909$ 12,523$ 12,887$ 13,037$ 14,364$ 15,623$ 16,866$
OVERLAPPING SALES TAX RATES
Basic sales tax rates
City of Auburn 0.85%0.85%0.85%0.85%0.85%0.85%0.85%0.85%0.85%0.85%
Washington State 6.50%6.50%6.50%6.50%6.50%6.50%6.50%6.50%6.50%6.50%
King County 0.15%0.15%0.25%0.25%0.25%0.25%0.25%0.25%0.25%0.25%
Regional Transit Authority 0.40%0.40%0.40%0.90%0.90%0.90%0.90%0.90%0.90%0.90%
Metro 0.80%0.90%0.90%0.90%0.90%0.90%0.90%0.90%0.90%0.90%
Criminal Justice 0.10%0.10%0.10%0.10%0.10%0.10%0.10%0.10%0.10%0.10%
Total basic sales tax rate 8.80%8.90%9.00%9.50%9.50%9.50%9.50%9.50%9.50%9.50%
Special sales tax rates
Restaurants-for stadium funding (1)0.50%0.50%0.50%0.50%0.50%0.50%0.00%0.00%0.00%0.00%
Motor vehicles-for multimodal transportation 0.30%0.30%0.30%0.30%0.30%0.30%0.30%0.30%0.30%0.30%
(1) This tax expired on October 1, 2011
Source: City of Auburn Finance Department and State of Washington
(Amounts Expressed in Thousands)
City of Auburn, Washington
SCHEDULE 10
RETAIL TAX COLLECTIONS BY SECTOR
Last Ten Fiscal Years
$0
$2,000
$4,000
$6,000
$8,000
$10,000
$12,000
$14,000
$16,000
$18,000
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015(Thousands)FIGURE 10: RETAIL TAX COLLECTIONS
City of Auburn: 2006 -2015
Other
Wholesaling
Manufacturing
Contracting
Services
Other Retail
Automotive
City of Auburn: 2015 CAFR Statistical Section
163
General Special Public Works Total Percentage
Fiscal Obligation Assessment Capital Revenue Trust Fund Primary of Personal Per
Year Bonds Bonds Leases Bonds Loans Government Income (1)Capita
2006 11,210,000$ 36,827$ -$ 5,905,000$ 9,853,410$ 27,005,237$ 3.04%551.63
2007 10,650,000 36,827 663,553 4,730,000 10,149,419 26,229,799 2.77%519.71
2008 10,053,000 36,827 646,799 3,495,000 9,730,324 23,961,950 1.82%357.61
2009 36,160,850 36,827 25,193,600 2,200,000 10,014,943 73,606,220 4.11%1,090.70
2010 64,816,850 - 604,685 23,220,000 10,296,024 98,937,559 5.35%1,449.21
2011 63,430,850 - 566,212 22,930,000 9,491,810 96,418,872 5.07%1,363.68
2012 61,900,771 - 524,498 23,057,333 8,687,599 94,170,201 5.05%1,321.87
2013 59,568,505 - 480,771 34,292,569 12,442,903 106,784,748 5.57%1,458.11
2014 57,367,766 - 435,068 32,813,473 11,808,711 102,425,018 5.12%1,372.44
2015 55,094,519 - 569,773 31,304,378 11,650,644 98,619,314 4.85%1,305.44
City of Auburn, Washington
Last Ten Fiscal Years
Govrnmental Activities Business-type Activities
RATIOS OF OUTSTANDING DEBT BY TYPE
SCHEDULE 11
-
300
600
900
1,200
1,500
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
FIGURE 11: PER CAPITA DEBT
Last Ten Fiscal Years
City of Auburn: 2015 CAFR Statistical Section
164
Parks and Utility Total
Councilmanic Excess Levy Open Spaces Purpose Capacity
December 31, 2015 - Total Assessed Value:
8,826,618,865$
2.5% of Assessed Value -$ 220,665,472$ 220,665,472$ 220,665,472$ 661,996,416$
1.5% of Assessed Value 132,399,283 (132,399,283) - - -
Statutory Debt Limit 132,399,283 88,266,189 220,665,472 220,665,472 661,996,416
Debt Outstanding 59,408,629 - - - 59,408,629
Net Debt Outstanding 59,408,629 - - - 59,408,629
Remaining Debt Capacity 72,990,654$ 88,266,189$ 220,665,472$ 220,665,472$ 602,587,787$
General Capacity Special Purpose Capacity
City of Auburn, Washington
SCHEDULE 12
COMPUTATION OF LEGAL DEBT MARGIN
As of December 31, 2015
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Debt Limit 432,377$ 489,472$ 653,979$ 577,669$ 565,822$ 539,989$ 518,188$ 546,602$ 617,872$ 661,996$
Total net debt
applicable to limit 11,352 10,757 10,771 62,671 66,868 65,364 63,815 64,047 61,892 59,409
Legal debt margin 421,025$ 478,715$ 643,208$ 514,998$ 498,954$ 474,625$ 454,372$ 482,554$ 555,980$ 602,588$
Total net debt
applicable to the limit
as a percentage of debt limit 2.63%2.20%1.65%10.85%11.82%12.10%12.32%11.72%10.02%8.97%
City of Auburn, Washington
SCHEDULE 13
LEGAL DEBT MARGIN RATIOS
Last Ten Fiscal Years
(Expressed in Thousands)
City of Auburn: 2015 CAFR Statistical Section
165
Net Debt Percent Bonded Amount
Outstanding Applicable (3)Applicable
Net direct debt:
Net direct debt - City of Auburn (1)59,057,602$
Estimated net overlapping debt: (2)
King County 829,126,323$ 1.92%15,919,225$
Port of Seattle 305,535,000 1.92%5,866,272
School District No. 210 179,917,615 2.64%4,749,825
School District No. 408 155,750,000 78.64%122,481,800
School District No. 415 144,334,997 1.28%1,847,488
Rural Library District 109,205,000 3.25%3,549,163
Valley Regional Fire Authority 14,560,000 90.52%13,179,712
Pierce County 154,086,008 1.02%1,571,677
Total estimated net overlapping debt 169,165,162
Total direct and overlapping debt 228,222,764$
Sources:
(1) City of Auburn finance department; includes both bonded and non bonded debt related to government activities
(2) Overlapping governments
(3) King County Assessors office and Pierce County Assessors office.
Calculation of overlapping debt: applicable percentage is determined by the ratio of assessed valuation of taxable property
in overlapping unit to valulation of property subject to taxation in the City of Auburn.
COMPUTATION OF NET DIRECT AND ESTIMATED OVERLAPPING DEBT
As of December 31, 2015
City of Auburn, Washington
SCHEDULE 14
City of Auburn: 2015 CAFR Statistical Section
166
Ratio
of Net
Debt Net Bonded Net
Assessed Net Service Bonded Debt to Bonded
Fiscal Value (1)Bonded Amount (3)Debt Assessed Debt per
Year Population (Thousands) Debt (2)Available (Thousands)Value Capita
2006 48,955 5,765,028 11,210,000$ 25,372$ 11,185$ 0.19%229$
2007 50,470 6,526,295 10,650,000 35,810 10,614 0.16%211
2008 67,005 6,556,690 10,053,000 41,603 10,011 0.15%150
2009 67,485 8,723,864 36,160,850 37,746 36,123 0.41%536
2010 68,270 7,765,878 64,816,850 46,058 64,771 0.83%949
2011 70,705 7,564,507 63,430,850 45,754 63,385 0.84%897
2012 71,240 7,225,550 61,900,771 46,155 61,855 0.86%869
2013 73,235 6,968,719 59,568,505 - 59,569 0.85%813
2014 74,630 7,422,169 57,367,766 - 57,368 0.77%769
2015 75,545 8,366,653 55,094,519 - 55,095 0.66%729
Notes:
(1) From Schedule 6
(2) Amount includes both bonded and non bonded debt related to government activities
(3) Fund balance from debt service fund.
RATIOS OF NET GENERAL BONDED DEBT TO ASSESSED VALUE
AND GROSS BONDED DEBT PER CAPITA
Last Ten Fiscal Years
City of Auburn, Washington
SCHEDULE 15
$0
$200
$400
$600
$800
$1,000
-
0.0020
0.0040
0.0060
0.0080
0.0100
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015Debt/Assessed ValueYear
FIGURE 15: BONDED DEBT RATIOS
Last Ten Fiscal Years
Debt/AV Debt/Pop
City of Auburn: 2015 CAFR Statistical Section
167
Direct(2)Debt Service Requirements
Gross (1)Operating Net Revenue Times
Year Revenue Expense Available Principal Interest Total (3)Coverage
2006 27,087,351 19,615,315 7,472,036$ 1,718,412$ 333,016$ 2,051,428$ 3.64
2007 27,492,779 21,237,294 6,255,485 1,914,523 281,065 2,195,588 2.85
2008 27,665,498 23,149,802 4,515,696 1,942,938 279,765 2,222,703 2.03
2009 31,265,941 27,314,611 3,951,330 2,002,938 217,283 2,220,221 1.78
2010 33,115,398 28,749,877 4,365,520 1,056,094 150,675 1,206,769 3.62
2011 34,909,200 29,201,088 5,708,112 1,013,830 1,248,612 2,262,442 2.52
2012 38,119,472 30,974,506 7,144,966 1,028,830 1,277,285 2,306,115 3.10
2013 42,406,722 36,406,640 6,000,082 1,943,830 1,508,405 3,452,235 1.74
2014 46,900,016 35,502,812 11,397,204 2,197,667 1,599,347 3,797,014 3.00
2015 49,673,159 38,425,799 11,247,360 2,231,093 1,563,433 3,794,526 2.96
Source: City of Auburn, Finance Department
(1) Includes water, sewer & storm drainage operating, interest and other revenues.
(2) Includes water, sewer & storm drainage operating expenses less depreciation.
(3) Includes both parity and non-parity debt.
PLEDGED REVENUE BOND COVERAGES
Last Ten Fiscal Years
City of Auburn, Washington
SCHEDULE 16
$0
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
YEAR
FIGURE 16: UTILITY BOND COVERAGES
Last Ten Fiscal Years
Net revenue available Debt service requirements
City of Auburn: 2015 CAFR Statistical Section
168
Item 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
School enrollment (1)14,367 14,559 14,716 14,589 14,482 14,363 14,596 14,971 15,248 15,536
Rate of unemployment (2)4.8%4.2%5.5%9.5%9.6%8.7%7.7%6.0%5.3%4.6%
Population (3)48,955 50,470 67,005 67,485 68,270 70,705 71,240 73,235 74,630 75,545
Personal income (thousands of dollars) (4)1,342,836$ 1,444,855$ 2,024,087$ 1,989,660$ 1,848,752$ 1,901,540$ 1,871,973$ 1,917,219$ 2,000,606$ 2,033,520$
Per capita personal income (4)27,430$ 28,628$ 30,208$ 29,483$ 27,080$ 26,894$ 26,277$ 26,179$ 26,807$ 26,918$
Housing units (5)
One unit 9,402 9,625 14,186 14,235 14,333 14,823 14,957 15,393 15,804 16,042
Two or more 8,943 9,623 10,375 10,391 10,426 10,592 10,631 10,841 10,841 10,847
Mobile home or special 2,407 2,382 2,761 2,782 2,794 2,635 2,618 2,630 2,631 2,637
Total housing units 20,752 21,630 27,322 27,408 27,553 28,050 28,206 28,864 29,276 29,526
Sources:
(1) Auburn School District No. 408
(2) Bureau of Labor Statistics
(3) WA State Office of Financial Management
(4) US Census Bureau
(5) WA State Office of Financial Management
City of Auburn, Washington
SCHEDULE 17
POPULATION, INCOME AND HOUSING TRENDS
Last Ten Fiscal Years
0
20,000
40,000
60,000
80,000
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
FIGURE 17: POPULATION AND HOUSING TRENDS
Last Ten Fiscal Years
Population Total housing units
City of Auburn: 2015 CAFR Statistical Section
169
Percentage Percentage
of Total City of Total City
Employer Product/service Employees Rank Employment Employees Rank Employment
The Boeing Company Aerospace 5,993 1 16.3%4,200 1 11.7%
The Outlet Collection Retail 3,208 2 8.7%
Auburn School District Education 2,410 3 6.5%1,995 3 5.5%
Muckleshoot Tribal Enterprises Gaming 1,650 4 4.5%2,100 2 5.8%
Multicare Auburn Medical Center*Hospital 1,580 5 4.3%625 5 1.7%
Green River Community College Education 1,315 6 3.6%850 4 2.4%
Emerald Downs Racetrack Horse racing 1,162 7 3.2%500 8 1.4%
Safeway Distribution Center Distribution Center 870 8 2.4%
Social Security Administration Gov't / public offices 660 9 1.8%600 6 1.7%
Zones, Inc.Technology reseller 644 10 1.7%500 9 1.4%
Certainteed Corporation Construction - 575 7 1.6%
City of Auburn City government 455 10 1.3%
TOTALS 19,492 52.9%12,400 34.5%
Sources: WA Employment Security Department
* Was previously Auburn Regional Medical Center.
2015 - City of Auburn, Economic Development
2006 - City of Auburn, 2006 CAFR
2015 2006
City of Auburn, Washington
SCHEDULE 18
MAJOR EMPLOYERS
Current Year and Nine Years Ago
0%
20%
40%
60%
80%
100%
2006 2015
FIGURE 18a: AUBURN EMPLOYMENT BASE
PERCENTAGE OF TOP EMPLOYER COMPARED TO ALL
EMPLOYERS
Last Ten Fiscal Years
Top employer
All employers
0%
20%
40%
60%
80%
100%
2006 2015
FIGURE 18b: AUBURN EMPLOYMENT BASE PERCENTAGE
OF TOP 10 EMPLOYERS COMPARED TO ALL EMPLOYERS
Last Ten Fiscal Years
Top 10 employers
All employers
City of Auburn: 2015 CAFR Statistical Section
170
Department 2006 2007 2008 2009 2010(3)2011 2012 2013 2014 2015
Mayor 10 11 12 12 10 10 7 7 3.0 3.0
Administration (5)- - - - - - - - 8.0 8.0
Human Resources 15 17 18 9 7 7 8 8 8.0 8.0
Finance 23 24 25 25 21 22 22 23 23.0 23.0
Municipal Court (4)15 17 21 21 17 19 - - 0.0 0.0
Legal 13 14 16 16 13 13 13 13 14.0 14.0
Community Development (6)25 29 34 34 24 24 28 29 25.0 26.0
Police 118 121 152 152 131 118 122 125 126.0 129.0
Fire (1)82 - - - - - - - 0.0 0.0
Public Works 48 54 63 63 43 43 43 48 49.0 49.0
Parks, Arts and Recreation (7)36 38 40 40 35 36 36 36 45.0 45.0
Street 11 15 14 14 12 19 19 19 19.0 19.0
Water 16 19 20 20 22 22 22 22 24.0 23.0
Sewer 8 11 11 11 11 12 11 10 10.0 10.0
Storm Drainage 9 12 16 17 16 10 10 10 10.0 10.0
Solid Waste 2 2 2 2 2 2 2 2 2.0 2.0
Cemetery 6 7 7 7 7 7 7 5 5.0 5.0
Golf Course (7)6 9 9 9 8 8 8 8 0.0 0.0
Facilities (2)- - - 10 10 10 9 9 9.0 10.0
Multi-Media (8)- - - - - - - - 3.6 3.6
Innovation & Technology 11 15 18 18 14 14 18 18 15.0 16.0
Equipment Rental 9 9 10 11 6 6 7 10 12.0 12.0
TOTAL 463 424 488 490 408 401 391 402 410.6 415.6
Source: City of Auburn Finance Department
(1)
separate legal entity effective 1/1/07.
(2)Facilities Division was previously included in the Human Resources Department prior to the creation of a new Internal
Service fund in 2009.
(3)Due to the economic downturn, the City eliminated 82.5 of the total 490 positions in 2010.
(4)In 2012, the City contracted out the Municipal Court to the King County District Court - resulting in a reduction of
19 positions.
(5)In 2014 the Administration Department was created and consists of 8 FTE's who were reorganized from several existing
departments such as the Mayors Department, Public Works and Community Development. This department includes
Emergency Management, Public Affairs, Economic Development, Human Services, Veterans Services and Community
Services.
(6)In 2014 the Planning Department was renamed Community Development.
(7)In 2014 the Golf Course fund was reclassified from an Enterprise Fund and included within the General Fund moving 8
of the Golf Course FTE's to the Parks, Arts and Recreation Department.
(8)In 2014 the Multi-Media division was reorganized from the Innovation & Technology Fund into it's own Internal Service
Fund. The 3.6 FTE's report to the Director of Administration.
City of Auburn, Washington
SCHEDULE 19
STAFFING LEVELS BY DEPARTMENT
Last Ten Fiscal Years
No data is presented for Fire employees for 2007 and thereafter due to the incorporation of the Fire department into a
-
20
40
60
80
100
120
140
160
Number of EmployeesFIGURE 19: STAFFING LEVELS
BY TYPE OF SERVICE
Last Ten Fiscal Years
2006
2007
2008
2009
2010(3)
2011
2012
2013
2014
2015
City of Auburn: 2015 CAFR Statistical Section
171
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Planning
Commercial permits 248 214 95 112 18 38 24 32 64 52
Commercial construction value ($1,000's)63,658$ 63,658$ 22,887$ 58,896$ 8,386$ 10,904$ 13,219$ 28,357$ 35,786$ 36,289$
Residential permits 485 293 165 85 184 229 461 464 374 253
Residential construction value ($1,000's)61,872$ 61,872$ 27,048$ 15,739$ 36,602$ 43,574$ 98,212$ 96,248$ 83,007$ 62,043$
Police
Crimes:
Arson 36 30 24 19 23 29 27 14 32 -
Aggravated Assault 158 143 154 163 137 148 110 145 156 186
Burglary 686 590 630 590 725 757 983 651 810 851
DUI 158 145 194 193 192 214 171 138 126 188
Homicide - 1 - 3 3 2 6 5 1 8
Narcotics 493 368 439 440 442 396 383 279 458 511
Rape 24 12 14 13 15 23 23 26 31 31
Robbery 122 92 102 92 79 107 110 109 104 91
Theft 2,216 1,962 2,343 2,362 2,533 2,435 2,415 2,583 3,192 2,728
Theft - motor vehicle 642 672 639 370 569 600 588 678 630 996
Traffic:
Non-criminal 4,978 6,865 6,794 7,788 7,182 5,400 4,922 5,378 6,520 5,489
Parking 3,965 4,802 3,740 4,026 4,648 3,383 1,946 2,052 5,238 3,737
Fire (1)
Type of response:
Building 98 - - - - - - - - -
Non-building 238 - - - - - - - - -
Alarm systems 524 - - - - - - - - -
Service 618 - - - - - - - - -
Other 979 - - - - - - - - -
First Aid 5,616 - - - - - - - - -
Parks and Recreation
Athletic teams 459 479 416 428 439 429 388 382 358 321
Recreation activities 2,069 2,719 2,056 2,335 2,281 3,462 3,833 3,568 3,557 3,511
Golf course rounds 43,454 50,500 54,993 50,572 49,950 45,484 45,704 47,480 47,697 52,718
Senior center visits 35,381 34,427 36,805 41,032 41,350 41,802 40,704 36,991 40,715 38,485
Cultural activities 58 84 84 90 101 127 146 180 202 204
Museum audience served 9,400 12,090 11,921 11,835 12,570 14,119 15,397 14,163 13,968 13,535
Cemetery burials 277 245 289 232 228 273 259 226 250 237
Sources: Various city departments
(1) 2007 - Effective 1/1/2007 Valley Regional Fire Authority formed replacing the Fire Departments of Auburn, Pacific and Algona.
City of Auburn, Washington
SCHEDULE 20
OPERATING INDICATORS BY DEPARTMENT
Last Ten Fiscal Years
City of Auburn: 2015 CAFR Statistical Section
172
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
General City
Total area (square miles)23.4 23.4 30.0 30.1 30.1 30.2 30.2 30.2 30.2 30.2
Public Works
Miles of streets 180 186 272 276 283 285 249 245 244 254
Number of streetlights 3,575 3,602 5,074 5,392 5,523 5,581 6,101 6,110 6,211 6,362
Number of traffic signals 72 72 83 85 86 89 93 94 94 -
Utilities
Number of services 12,633 12,954 13,050 13,076 13,372 13,334 13,863 14,106 14,573 14,787
Miles of water lines 279 287 283 293 297 304 314 315 316 320
Miles of sanitary sewer lines 177 182 205 207 213 213 219 220 220 223
Miles of storm lines 195 197 197 204 226 247 252 263 282 294
Number of fire hydrants 2,300 2,369 2,969 2,998 3,044 3,277 3,308 3,329 3,559 3,580
Public Safety
Number of fire stations (1)3 - - - - - - - - -
Number of police stations 2 2 2 2 2 2 2 2 2 2
Parks and Recreation
Total park acreage (2)596 596 598 602 602 602 630 635 972 977
Number of softball/baseball fields 19 19 19 18 18 18 17 17 18 18
Number of soccer/football fields 3 3 3 3 3 3 3 4 4 4
Number of playgrounds 30 30 32 33 35 35 35 36 28 31
Sources: Various city departments
(1) Effective 1/1/2007 Valley Regional Fire Authority formed replacing the Fire Departments of Auburn, Pacific and Algona.
(2) The increase in total park acreage since 2013 is due to property inventory update in anticipation of the Parks Recreastion & Open Space Plan update
and additional park categories are now being reported.
City of Auburn, Washington
SCHEDULE 21
CAPITAL ASSET INDICATORS BY DEPARTMENT
Last Ten Fiscal Years
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Water Customers by Class
Single Family Residential 10,199 10,482 10,493 10,535 10,564 10,704 11,224 11,476 11,822 11,973
Multifamily 915 957 961 985 991 991 989 986 1,000 1,003
Commercial 1,069 1,086 1,098 1,083 1,100 1,095 1,098 1,094 1,146 1,190
Mfr./Industrial 39 39 39 38 38 38 37 37 38 38
Schools 38 39 39 37 37 37 36 37 37 37
City Accounts 27 28 30 27 29 28 26 28 30 30
Irrigation 339 316 383 363 401 434 446 441 493 509
Total Retail Water Customers 12,626 12,947 13,043 13,068 13,160 13,327 13,856 14,099 14,566 14,780
Wholesale Water Customers 7 7 7 8 8 7 7 7 7 7
Sewer Customers by Class
Single Family Residential (1)N/A N/A 10,698 10,711 10,918 11,183 11,522 11,982 12,631 12,890
Non-single Family Residential (1)N/A N/A 2,604 2,605 2,612 2,616 2,653 2,659 2,713 2,728
Total Sewer Customers N/A N/A 13,302 13,316 13,530 13,799 14,175 14,641 15,344 15,618
Storm Customers by Class
Single Family Residential (2)9,694 9,817 14,374 14,441 14,495 14,846 15,168 15,618 16,013 16,222
Non-single Family Residential (2)1,562 1,595 1,623 1,650 1,769 1,653 1,661 1,640 1,670 1,679
Total Storm Customers 11,256 11,412 15,997 16,091 16,264 16,499 16,829 17,258 17,683 17,901
Sources: City of Auburn - Utility Billing
(1) The City's billing system was converted in 2005, data for Sewer Customers by Class prior to 2005 is not available
(2) The City's billing system was converted in 2005, data for Storm Customers by Class prior to 2006 is not available
City of Auburn, Washington
SCHEDULE 22
NUMBER OF UTILITY CUSTOMERS BY CUSTOMER CLASS
Last Ten Fiscal Years
City of Auburn: 2015 CAFR Statistical Section
173
Prepared by:
Shelley Coleman
Finance Director
Paula Barry
Assistant Finance Director
Janice Davies
Accounting Manager
Brenda Goodson-Moore
Utilities Customer Care Manager
Teri Ashton
Accountant
Ronda Stella
Payroll & Accounts Payable Supervisor
Consuelo Rogel
Financial Analyst
Aimee Campbell
Financial Analyst
Tamara Baker
Financial Analyst
Evelyn McOsker
Finance Secretary
City of Auburn: 2015 CAFR Statistical Section
174