HomeMy WebLinkAbout2017 CAFR2017 COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE YEAR ENDED DECEMBER 31, 2017
CITY OF AUBURN
WASHINGTON
COMPREHENSIVE ANNUAL
FINANCIAL REPORT
Fiscal Year January 1, 2017 through December 31, 2017
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Prepared by
City of Auburn Finance Department
Shelley Coleman, Finance Director
City of Auburn: 2017 CAFR Table of Contents
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COMPREHENSIVE ANNUAL FINANCIAL REPORT
For the Year Ended December 31, 2017
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
Notes to the Financial Statements ................................................................................................................... 55
Required Supplemental Information
Schedule of Proportionate Share of the Net Pension Liability PERS 1 .................................................... 103
Schedule of Proportionate Share of the Net Pension Liability PERS 2/3 ................................................. 103
Schedule of Proportionate Share of the Net Pension Liability LEOFF 1 .................................................. 103
Schedule of Proportionate Share of the Net Pension Liability LEOFF 2 .................................................. 103
Schedule of Employer Contributions PERS 1............................................................................................. 105
Schedule of Employer Contributions PERS 2/3 ......................................................................................... 105
Schedule of Employer Contributions LEOFF 2 .......................................................................................... 105
Firefighter’s Pension Fund-Schedule of Changes in Total Pension Liability & Related Ratio’s ..............106
Retiree Medical & Long-Term Care Benefits LEOFF 1-Schedule of Funding Progress ............................ 107
Retiree Medical & Long-Term Care Benefits LEOFF 1-Schedule of Employer Contributions .................. 107
City of Auburn: 2017 CAFR Table of Contents
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Page
Combining and Individual Fund Financial Statements and Schedules
Non-Major Government Funds:
Combining Balance Sheet .......................................................................................................................... 110
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances .............................. 111
Non-Major Special Revenue Funds:
Combining Balance Sheet .......................................................................................................................... 114
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances .............................. 116
Statement of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual:
Local Street Special Revenue Fund ....................................................................................................... 118
Hotel/Motel Tax Special Revenue Fund ................................................................................................ 119
Arterial Street Preservation Special Revenue Fund .............................................................................. 120
Drug Forfeiture Special Revenue Fund ................................................................................................. 121
Housing & Community Development Special Revenue Fund .............................................................. 122
Recreation Trails Special Revenue Fund ............................................................................................... 123
Business Improvement Area Special Revenue Fund ............................................................................ 124
Cumulative Reserve Special Revenue Fund .......................................................................................... 125
Mitigation Special Revenue Fund .......................................................................................................... 126
Non-Major Debt Service Funds:
Combining Balance Sheet .......................................................................................................................... 128
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances .............................. 129
Capital Project Funds:
Combining Balance Sheet .......................................................................................................................... 132
Combining Statement of Revenues, Expenditures, and Changes in Fund Balance ................................ 133
Permanent Fund:
Balance Sheet ............................................................................................................................................. 136
Statement of Revenues, Expenditures and Changes in Fund Balance .................................................... 137
Non-Major Enterprise Funds:
Combining Statement of Net Position ...................................................................................................... 140
Combining Statement of Revenues, Expenses, and Changes in Net Position ........................................ 141
Combining Statement of Cash Flows ........................................................................................................ 142
Internal Service Funds:
Combining Statement of Net Position ...................................................................................................... 146
Combining Statement of Revenues, Expenses, and Changes in Net Position ........................................ 147
Combining Statement of Cash Flows ........................................................................................................ 148
Agency Fund:
Statement of Changes in Assets and Liabilities ........................................................................................ 152
City of Auburn: 2017 CAFR Table of Contents
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III. STATISTICAL SECTION
Schedule Page
Net Position by Components .................................................................................................................. 1............... 154
Changes in Net Positions ......................................................................................................................... 2............... 155
Fund Balances, Government Funds ........................................................................................................ 3............... 156
Changes in Fund Balances, Government Funds .................................................................................... 4............... 157
Tax Revenues by Source, Government Funds ....................................................................................... 5............... 158
Assessed Value by Type.......................................................................................................................... 6............... 159
Property Tax Data.................................................................................................................................... 7...............160
Property Tax Levies and Collections ...................................................................................................... 8............... 162
Principal Taxpayers – Property Taxes .................................................................................................... 9............... 163
Retail Tax Collections by Sector............................................................................................................ 10...............164
Ratios of Outstanding Debt by Type ..................................................................................................... 11............... 165
Computation of Legal Debt Margin ...................................................................................................... 12...............166
Legal Debt Margin Ratios ...................................................................................................................... 13...............166
Computation of Net Direct and Estimated Overlapping Debt ............................................................ 14............... 167
Ratios of Net General Bonded Debt to Assessed Value ...................................................................... 15...............168
Pledged Revenue Bond Coverages ...................................................................................................... 16...............169
Population, Income and Housing Trends ............................................................................................. 17............... 170
Major Employers.................................................................................................................................... 18............... 171
Staffing Levels by Department ............................................................................................................. 19............... 172
Operating Indicators by Department ...................................................................................................20............... 173
Capital Asset Indicators by Department .............................................................................................. 21............... 174
Utility Customers by Customer Class .................................................................................................... 22............... 174
City of Auburn: 2017 CAFR Table of Contents
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CITY COUNCIL
CITY OFFICIALS
MAYOR
Nancy Backus
Claude DaCorsi John Holman Bob Baggett
Bill Peloza Yolanda Trout-Manuel Larry Brown 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 Vacant
Police Chief Bob Lee
Administration Director Dana Hinman
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Citizens
Mayor
Nancy Backus
City Council
Director of HR &
Risk/Property Mgmt.
Rob Roscoe
City Attorney
Dan Heid
Police Chief
Bob Lee
Director of Innovation
and Technology
Paul Haugan
Director of
Administration
Dana Hinman
Community
Dev. & Public Works
Director
Vacant
Parks, Art and
Recreation Director
Daryl Faber
Finance Director
Shelley Coleman
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June 21, 2018
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, 2017.
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, 2017. This transmittal let ter 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 g enerally
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 desi gned 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: 2017 CAFR Letter of Transmittal
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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 2016
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 41% 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 78,960 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, community and teen center, golf course and museum; land use management and
development regulation; infrastructure construction and maintenance; water, sanitary sewage collection,
storm 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
(SCORE) providing jail facilities. Both these organiza tions provide services to other owner/member
governments and other non-owner/member governments as well through interlocal agreements.
City of Auburn: 2017 CAFR Letter of Transmittal
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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. As of year-end 2017, Auburn was providing 60,118 jobs with a unemployment rate of 4.1%, which is below
both the national and state figures.
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-oriented 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
1,613 people, and is currently investing 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.
Significant developments in the City include the issuance of 178 building permits for single family homes as well as
about $120 million in commercial construction, which includes projects such as the Promenade (298 unit mixed use
development), The Reserve and Villas (597 unit mixed use development), The Estates at Hillside Garden (126 unit
senior housing project), Multicare Emergency Room upgrades, Boeing job training center, three mini storage
complexes, and several new commercial strip buildings and tenant improvements at the Outlet Collection These
projects have positive impacts on available revenue and, as they take hold, will serve to strengthen the City’s
economic future.
The City’s total assessed property valuation has risen from $6.5 billion in 2008 to $10.6 billion in 2017. The recession,
coupled with the impact of the Streamlined Sales Tax (SST) legislation enacted by the State of Washington that went
into effect July 1, 2008, reduced general sales tax revenues from their high in 2007 of $17.5 million to a low of $11.8
million in 2009, then increasing slowly to $17.7 million in 2017. 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
has been receiving approximately $1.9 million in mitigation payments each year since 2012. Mitigation payments are
scheduled to end in the third quarter of 2019. This loss may ultimately be offset by Marketplace Fairness Act (internet
sales tax) revenues. Sales tax revenue, net of criminal justice and annexation sales tax credits, increased $731,000
(5%) from 2016. The portion allocated to the General Fund, $15 million, constitutes a bout 23% of its revenue.
Nonetheless, while the local economy is favorable, the City remains vigilant in its management of expenses to ensure
it lives within its means.
City of Auburn: 2017 CAFR Letter of Transmittal
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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 along with a reserve fund for stabilization, 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 restoration 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 continues, 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: 2017 CAFR Letter of Transmittal
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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 econom ies 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 over 160 members) and the
City actively pursues risk reduction in the operation of its programs.
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.
The City purchases, with employee participation, most of its health insurance for its employees through commercial
policies administered by Brown and Brown. Employees represented by the outside Teamsters Union have insurance
through the Teamsters organization and employees represented by the inside Teamsters Union have insurance
policies administered by the Association of Washington Cities. 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.
City of Auburn: 2017 CAFR Letter of Transmittal
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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 2017 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 2017. 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, 2016. This was the twenty-ninth consecutive year
that the City has achieved this prestigious award. In order to be awarded a Certif icate 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 2017, the City has also received the Government Finance Officers Association Distinguished Budget
Presentation award for its 2017-2018 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 2015.
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
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, 2016
/ID. ·rJI, _ p. •-�-."�.1�i ,,..�
Executive Director/CEO
9
10
Insurance Building, P.O. Box 40021 Olympia, Washington 98504-0021 (360) 902-0370 Pat.McCarthy@sao.wa.gov
Office of the Washington State Auditor
Pat McCarthy
INDEPENDENT AUDITOR’S REPORT ON FINANCIA L STATEMENTS
June 21, 2018
Mayor and City Council
City of Auburn
Auburn, Washington
REPORT ON THE FINANCIAL STATEMENTS
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, 2017, and the related notes to the
financial statements, which collectively comprise the City’s basic financial statements as listed in the
table of contents.
Management’s Resp onsibility for the Financial Statements
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.
Auditor’s Responsibility
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
11
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.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our audit opinions.
Opinion
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, as of December 31, 2017, and the
respective changes in financial position and, where applicable, cash flows thereof, and the respective
budgetary comparison for the General Fund and Arterial Street Fund for the year then ended in
accordance with accounting principles generally accepted in the United States of America.
Matters of Emphasis
As discussed in Note 1 to the financial statements, in 2017, the City adopted new accounting guidance,
Governmental Accounting Standards Board Statement No. 73, Accounting and Financial Reporting for
Pensions and Related Assets That Are Not within the Scope of GASB Statement 68, and Amendments to
Certain Provisions of GASB Statements 67 and 68. Our opinion is not modified with respect to this
matter.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s
discussion and analysis and required supplementary information listed in the table of contents 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.
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Supplementary and Other Information
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 and
individual fund financial statements and schedules are presented for the 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 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 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.
OTHER REPORTING REQUIRED BY GOVERNMENT AUDITING STANDARDS
In accordance with Government Auditing Standards, we will also issue our report dated June 21, 2018,
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. That report will be issued under separate cover in the City’s Single Audit Report. 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,
Pat McCarthy
State Auditor
Olympia, WA
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City of Auburn: 2017 CAFR Management’s Discussion and Analysis
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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 l iabilities plus
deferred inflows – equals $695.2 million, an increase of $19.0 million or 2.8%. Of this, a total of $578.7 million, or 83.2%
of total net position, represents net investment in capital assets and includes assets such as utility systems, streets,
buildings, land, vehicles and equipment. An additional $3.2 million of net position is restricted for purposes of
endowment and debt service. Of the remaining $113.3 million of net position, $28.5 million is legally restricted,
restricted by City policy for specific purposes, or is restricted for use by the City’s utilities , and $84.8 million is
unrestricted.
The net increase in government-wide net position during 2017 was $19.0 million. Of this amount, $16.0 million was
directly related to the increase in City-owned net investment in capital assets, restricted net position increased by
$1.9 million, and unrestricted net position increased by $1.1 million.
Business-type net position increased by $9.8 million to $249.2 million during 2017 as a result of net capital investment
and net earnings related to the City’s water, sewer and storm water utilities.
Governmental fund balances at year-end totaled $69.1 million. Of this amount, $25.4 million, or 36.8%, is unassigned
and available to fund ongoing activities. Compared to 2016, total governmental fund balances increased by $3.5
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
$9.4 million. Total long-term liabilities, including bonds and loans, totaled $119.5 million at December 31, 2017. The
ending long-term liabilities is a decrease of $9.2 million from 2016 and is largely attributable to the retirement of
bond principal. See note 9 for further information on long-term liability activity during the year.
City of Auburn: 2017 CAFR Management’s Discussion and Analysis
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Other City Highlights:
Parks and Community Development
Was awarded over $600,000 in grant funds for the Museum and the Arts and Culture Center for programming and
improvements.
Increased marketing presence on social media as well as completed facility rental marketing brochures for the
Auburn Community & Event Center and other facilities, leading to a large increase in rental revenues.
Completed construction of new Memory Heights area of Mountain View Cemetery, adding over 500 new burial sites.
Rebuilt the first green and surrounds at the Auburn Golf Course, increasing drainage and playability.
Replaced the playground at Roegner Park.
Completed Les Gove Park improvements along Auburn Way, adding irrigation and updating the pergola.
Processed more than 2,800 permits and 900 business licenses, completed 6,050 building inspections, conducted
7,680 permit reviews, and participated in more than 50,000 interactions with customers.
Launched electronic plan review capabilities that allow customers to submit electronically and that enable the
customer and staff to transfer information electronically.
Became the first jurisdiction in the State of Washington to allow final subdivisions to be approved administratively
rather than legislatively.
Managed 1,244 code enforcement cases and achieved resolution on 1,193 cases (95.9% success rate).
Engineering Services
Completed 25 capital projects totaling approximately $31M that included: 30 lane miles of new pavement, 6,500 feet
of new water mains, three new pressure reducing valve stations for water, two new water well pumps, 10,300 feet
of new storm drainage piping, 5,700 feet of new sanitary sewer piping, six new/replaced traffic signal systems, and
20,000 feet of new/replaced sidewalks.
Completed several water projects bringing the City’s water sources back on line and reducing the need to purchase
water from Tacoma, saving the water system approximately $1M per year.
Completed design of the 22nd and I Street NE roundabout and began construction.
Completed the installation of two dynamic message signs on Auburn Way South and S 277th Street to provide drivers
with information to improve driver behavior and traffic flow.
Completed the reconstruction of B Street NW using full-depth pavement reclamation methods, saving
approximately $1M in costs.
Completed the installation of a high friction surface treatment on Lake Tapps Parkway as a pilot project to address
safety concerns.
Completed the purchase of equipment and began implementation of scanner-generated field survey data.
Completed the installation of a pedestrian actuated crosswalk at R St SE and 21 st St SE, installation of radar speed
feedback signs on 118th Ave SE, SE 316th Street, and 55th Ave S, and over 40 speed studies.
Issued 49 right-of-way use permits, completed two franchise agreements, and completed seven street cleanup
activities through the Adopt-A-Street Program.
Completed the Airport obstruction survey/advanced ground information system (AGIS) survey.
Completed 433 inspections on private storm systems and 303 inspections on public storm systems for compliance
with our NPDES Phase 2 permit.
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Issued 380 construction permits for work in the public right-of-way, completed inspections related to 1,190 other
development permits (building, plumbing, water, sewer, storm and backflow), managed 76 active public facility
extension agreements with developers and 26 active grading permits.
Refreshed all striping on public roads and continued to refresh thermoplastic pavement markings and legends a s
needed.
Maintenance & Operations Services
Completed rehabilitation in ten storm drainage ponds. This work returned the ponds to original design specifications
thereby enhancing the function and longevity of these facilities.
Engaged in regular preventative maintenance activities of the sewer system to include video inspection, high
velocity cleaning, repair of collection system assets and operation of 24 sewer/storm pump stations.
Completed a three year project of installing the Sensus Automated Metering Infrastructure (AMI) system. This
project included replacing over 15,000 meters and installing four radio base stations throughout the city to collect
meter reads.
Completed ongoing citywide repairs or replacement of damaged and worn street sign s identified through staff
inspections.
Equipment Rental replaced 32 new vehicles and equipment to replace aging units in the fleet , minimizing repair
costs and maximizing vehicle up-time and utilization.
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 City’s net position and changes during the reporting year. 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 secti on
of the management’s discussion and analysis is intended to introduce and explain the basic financial statements.
Government-wide Financial Statements
The Financial Statements are presented in conformity with the Governmental Accounting Standards Board (GASB ), which
establishes Generally Accepted Accounting Principles (GAAP) for governmental entities. The City adopted the provisions of
Statement No. 73 – Accounting and Financial Reporting for Pensions and Related Assets That Are Not Within the Scope of GASB
Statement 68, and Amendments to Certain Provisions of GASB Statements 67 and 68; GASB Statement No. 82 – Pension Issues,
an amendment of GASB Statement No. 67, No. 68, and No. 73. There is no material impact to the City of implementing these
standards.
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
City of Auburn: 2017 CAFR Management’s Discussion and Analysis
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assets, deferred outflows of resources, long-term obligations and deferred inflows of resources. 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 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 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 - one 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 statemen ts later in this report. The City
maintains budgetary control over its operating funds through the adoption of a biennial budget. Budgets are adopted at
City of Auburn: 2017 CAFR Management’s Discussion and Analysis
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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.
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 accou nt
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 sta tements 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 in ternally among the City’s
various functions. The City uses internal service funds to account for its fleet of vehicles, maintenance and operation of
facilities, computer hardware and software services, employee costs related to occupational injury or illness, and 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 one fiduciary fund: An agency fund, which is accounted for on the accrual basis. As agency funds are custodial
in nature, they do not include revenues and expenses.
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 pages 44 and 45, and the pension benefit
and other postemployment benefit required supplementary information is found in the required supplemental information
section.
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”.
City of Auburn: 2017 CAFR Management’s Discussion and Analysis
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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 2016 to 2017 show an increase in total
net position of $19.0 million or 2.8%. Following is a condensed version of the government-wide statement of net position
with a comparison to 2016:
The largest component of the City’s net position, $579.0 million, or 83.2% 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 curren t
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, $42.8 million, may be used for functions such as public safety employee
salaries and supplies, parks and road maintenance, and other general governmental services. The second largest component
of unrestricted net position, $42.0 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 $29.9 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 by $16.4
million.
As of 12/31/17 As of 12/31/16 As of 12/31/17 As of 12/31/16 As of 12/31/17 As of 12/31/16
Current and other assets 130,119,043$ 121,141,782$ 58,080,763$ 57,286,223$ 188,199,806$ 178,428,005$
Capital assets, net of
accumulated depreciation 404,922,880 400,377,892 237,873,905 231,598,816 642,796,785 631,976,708
Total assets 535,041,923 521,519,674 295,954,668 288,885,039 830,996,591 810,404,713
Deferred Outflows of Resources 2,241,938 4,034,077 928,489 1,359,639 3,170,427 5,393,716
Long-term liabilities 76,954,091 78,915,572 38,315,101 42,564,080 115,269,192 121,479,652
Other liabilities 10,713,381 9,533,214 8,478,481 8,130,257 19,191,862 17,663,471
Total liabilities 87,667,472 88,448,786 46,793,582 50,694,337 134,461,054 139,143,123
Deferred Inflows of Resources 3,589,485 329,987 927,497 152,168 4,516,982 482,155
Net position
Net investment in capital assets 373,368,906 367,128,894 205,677,614 195,490,061 579,046,520 562,618,955
Restricted for:
Capital Projects 27,407,299 24,332,465 - 800 27,407,299 24,333,265
Nonexpendable Permanent Endowment 1,717,134 1,666,043 - - 1,717,134 1,666,043
Debt Service 9,686 11,945 1,437,567 2,694,103 1,447,253 2,706,048
Tourist Promotion 200,371 180,146 - - 200,371 180,146
Drug Investigation & Enforce 381,136 451,507 - - 381,136 451,507
Comm Dev Block Grant 44,904 44,904 - - 44,904 44,904
Central Business Distr Dev 93,710 58,260 - - 93,710 58,260
Rate Stabilization - - 419,403 415,511 419,403 415,511
Unrestricted 42,803,759 42,900,814 41,627,494 40,797,698 84,431,253 83,698,512
Total net position 446,026,905$ 436,774,978 249,162,078$ 239,398,173$ 695,188,983$ 676,173,151$
Governmental Activities Business-type Activities Total
STATEMENT OF NET POSITION
Comparative Analysis of 2017 and 2016
City of Auburn: 2017 CAFR Management’s Discussion and Analysis
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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:
Governmental activities contributed $12.5 million to the total increase in City net position. Revenues to fund capital assets
are recorded as program or general revenues in the statement of activities. However, asset purchases are not recorded as
expenses in the year purchased and construction costs are not recorded as expenses in the year incurred. Instead, the costs
are recorded as long-term assets and are depreciated over their useful lives.
2017 2016 2017 2016 2017 2016
Revenues:
Program revenues
Charges for services 11,790,334$ 12,338,041$ 68,220,200$ 65,733,943$ 80,010,534$ 78,071,984$
Operating grants and contributions 2,257,646 2,767,931 106,286 106,286 2,363,932 2,874,217
Capital grants and contributions 13,229,502 13,275,208 4,363,568 10,574,852 17,593,070 23,850,061
General revenues
Property taxes 20,967,953 18,102,286 - - 20,967,953 18,102,286
Sales taxes 22,333,454 21,475,335 - - 22,333,454 21,475,335
Interfund utility taxes 4,540,265 4,624,951 - - 4,540,265 4,624,951
Admission & utility taxes 10,391,462 8,917,401 - - 10,391,462 8,917,401
Excise taxes 4,141,146 5,057,013 - - 4,141,146 5,057,013
Other taxes 5,253,964 5,160,215 - - 5,253,964 5,160,215
Investment earnings 787,786 332,520 479,132 196,595 1,266,918 529,115
Miscellaneous revenue 204,306 157,874 444,110 1,085,275 648,416 1,243,148
Total revenues 95,897,818 92,208,775 73,613,296 77,696,951 169,511,114 169,905,726
Expenses:
General government 10,384,647 9,557,602 - - 10,384,647 9,557,602
Public safety 32,746,406 32,117,837 - - 32,746,406 32,117,837
Transportation 17,904,352 16,602,993 - - 17,904,352 16,602,993
Physical environment 3,217,885 3,266,375 - - 3,217,885 3,266,375
Culture and recreation 13,539,098 12,811,186 - - 13,539,098 12,811,186
Economic environment 3,859,863 3,224,984 - - 3,859,863 3,224,984
Health and human services 674,270 573,115 - - 674,270 573,115
Interest on long-term debt 1,555,803 1,709,647 - - 1,555,803 1,709,647
Water - - 12,408,008 13,107,629 12,408,008 13,107,629
Sanitary sewer - - 25,360,718 25,685,370 25,360,718 25,685,370
Storm drainage - - 8,979,969 8,814,542 8,979,969 8,814,542
Solid waste - - 14,539,703 13,460,155 14,539,703 13,460,155
Other business-type activities - - 2,106,557 2,150,693 2,106,557 2,150,693
Total expenses 83,882,324 79,863,739 63,394,955 63,218,389 147,277,279 143,082,128
Increase in net position before transfers 12,015,495 12,345,036 10,218,341 14,478,562 22,233,836 26,823,598
Transfers 454,436 424,173 (454,436) (424,173) - -
Change in net position 12,469,931 12,769,209 9,763,905 14,054,389 22,233,836 26,823,598
Net Position, January 1, as Previously Reported 436,774,978 421,493,212 239,398,173 225,343,784 676,173,151 646,836,996
Change in Accounting Principle (3,218,004) 2,512,557 - - (3,218,004) 2,512,557
Net Position, January 1, as Restated 433,556,974 424,005,769 239,398,173 225,343,784 672,955,147 649,349,553
Net position, December 31 446,026,905$ 436,774,978$ 249,162,078$ 239,398,173$ 695,188,983$ 676,173,151$
Governmental Activities Business-type Activities Total
CHANGES IN NET POSITION
Comparative Analysis of 2017 and 2016
City of Auburn: 2017 CAFR Management’s Discussion and Analysis
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General tax revenues increased by 6.8% to $67.6 million between 2016 and 2017, compared to an increase of 3.3% between
2015 and 2016:
Property tax revenue increased $2.9 million or 15.8%.
Sales tax collections increased $0.9 million or 4.0%, reflecting improvement in the economy.
Utility and admission tax revenue increased by $1.4 million or 10.3%.
Excise tax revenue decreased by $0.9 million or 18.1%.
Investment earnings increased by $0.4 million in governmental activities and $0.3 million in business-type activities
for a government-wide increase of $0.7 million. Government-wide miscellaneous revenue decreased by $0.6 million
to $0.6 million.
Government-wide expenses increased by approximately $4.2 million or 2.9% and were largely attributable to general
increases in operating expenses such as salaries and wages.
The chart below summarizes the government activity revenue by source, while the chart on the next page 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
14%
Operating Grants &
Contributions
2%
Property Taxes
22%Sales Taxes
23%
Interfund Utility Taxes
5%
Utility & Admission Taxes
11%
Other Taxes
10%
Other Revenue
1%
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Program Expenses and Revenues – Governmental Activities
Business-type net position totaled $249.2 million, an increase of 4.1%. Key components of this increase include:
Business-type revenues decreased $4.1 million to $73.6 million due to a reduction in capital grants and contributions
as well as miscellaneous revenues, which were partly offset by increases in charges for services and investment
earnings.
Income (loss) before capital contributions and transfers amounted to:
Water fund: $ 2,747,130
Sanitary sewer fund: 623,178
Storm fund: 1,028,263
Solid waste fund: 677,037
Non-major funds: 155,260
$ 5,230,868
Net transfers totaled ($454,436).
$0
$5
$10
$15
$20
$25
$30
MillionsProgram Revenues
Expenses
City of Auburn: 2017 CAFR Management’s Discussion and Analysis
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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.
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
26.9
2.0
Water
32.0%
Sanitary Sewer
34.6%
Storm Drainage
26.9%
Solid Waste
2.0%
Airport
3.9%
Cemetery
0.6%
$0
$10
$20
$30
$40
$50
$60
$70
$80
$90
Water Sanitary Sewer Storm Drainage Solid Waste
Spendable Net Position
Total Net Position
City of Auburn: 2017 CAFR Management’s Discussion and Analysis
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Comparison of Total Net Position to Spendable Net Position
Other Enterprise Funds
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
$0
$1
$2
$3
$4
$5
$6
$7
$8
$9
$10
Airport CemeteryMillionsSpendable Net Position
Total Net Position
$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
ActivitiesMillionsRevenues
Expenses
City of Auburn: 2017 CAFR Management’s Discussion and Analysis
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Business Type Activity Revenues
By Source
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, 2017, the City’s governmental funds had combined fund balances of $69.1 million, an increase of $3.5
million or 5.4% over the previous year. This change is primarily due to increases in fund balances for the General fund and
capital improvement fund net of a reduction in fund balance for the City’s Arterial Street and other governmental funds. The
following table shows the changes in fund balance between 2016 and 2017.
Changes in Fund Balance - By Fund
100.0Charges for Services
91.6%
Capital Contributions
5.9%
Investment Earnings
0.7%
Business-type
Miscellaneous Income
1.8%
Fund 2017 2016 Difference
General fund 34,760,782$ 32,151,179$ 2,609,603$
Arterial street fund 2,584,136 2,655,913 (71,777)
Capital improvement fund 11,271,845 10,032,509 1,239,336
All other government funds 20,442,878 20,704,803 (261,925)
Total 69,059,641$ 65,544,404$ 3,515,237$
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Of the government funds’ total fund balances, $25.4 million is unassigned. Nonspendable, restricted, committed and
assigned fund balances total $43.6 million. Of this $43.6 million, $13.9 million is earmarked for capital projects, $18.7 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 2017, the general fund had
a fund balance of $34.8 million, $9.3 million of which is assigned, and $25.5 million is unassigned.
Other funds that had significant fund balances include:
$11.3 million in the capital improvement projects fund; used for various governmental capital asset projects.
$20.4 million in all other government funds; used primarily for local street improvements, local revitalization funding
and maintenance of cemetery.
The general fund balance of $34.8 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
2016 due to inflation and programmatic changes. Meanwhile, the City continues its vigilance in monitoring general
expenditure activity.
The following chart shows the relative fund balances for governmental funds:
Governmental Funds – Fund Balances
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General fund revenue increased by $3.3 million, sources of which are shown in the chart below. Property taxes increased by
$2.9 million and sales taxes increased $0.5 million. Utility and other taxes increased by a net of $0.3 million. Licenses and
Permits decreased by $1.1 million due primarily to reductions in building permit fees ($0.8 million) and plumbing permits ($0.2
million). Charges for Services increased by $0.2 million, Fines & Forfeitures essentially remained unchanged,
Intergovernmental Revenues increased by $0.4 million and Miscellaneous Revenues increased by $0.2 million.
2017 General Fund Revenue Changes – By Source
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.
Property Taxes
$$733,412
Sales Taxes
$369,290 Interfund Utility Taxes
$312,103
Utility & Admission Taxes
$34,771
Licenses & Permits
$909,993
Charges for Services
($144,266)
Fines & Forfeitures
($32,854)
Intergovernmental
$386,833
Miscellaneous
$401,928
($200,000)
$0
$200,000
$400,000
$600,000
$800,000
$1,000,000
Property Taxes
$2.9
Sales Taxes
$0.5
Interfund Utility Taxes
($0.1)
Utility & Admission Taxes
$0.4
Licenses & Permits
($1.1)
Charges for Services
$0.2
Fines & Forfeitures
($0.0)
Intergovernmental
$0.4
Miscellaneous
$0.1
($1.6)
($1.2)
($0.8)
($0.4)
$0.0
$0.4
$0.8
$1.2
$1.6
$2.0
$2.4
$2.8
$3.2
$3.6
$4.0
Millions
City of Auburn: 2017 CAFR Management’s Discussion and Analysis
29
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 2017 budget
included:
Budgeted General Fund expenditures and transfers out increased from $69.5 million to $73.2 million. Significant
changes include increased property tax revenues to reflect the use of banked capacity, funding of emergency repairs
at the Auburn Municipal Airport, and transfers to the insurance and cumulative reserve fund.
Reasons for the variances in the general fund between the final budget and actual results include:
Actual General Fund revenues totaled $68.6 million, exceeding budget by $1.3 million. Significant areas of favorable
variance include sales and property taxes, which exceeded budget by $320,000 and $186,000, respectively, as
described above; rents and leases, which exceeded budget by $164,000; electric and gas utility taxes, which
exceeded budget by $307,000; leasehold excise taxes, which exceeded budget by $163,000; and investment in come,
which exceeded budget by $169,000. Areas of unfavorable variance include building permits, which were $383,000
below budget; brokered natural gas taxes, which were $176,000 under budget; and development services fees,
which were $101,000 below budget.
Actual General Fund expenditures totaled $67.0 million and were under budget by $6.2 million. Departments
experienced savings due to continued vigilance in monitoring city-wide expenditures. Significant areas of under-
expenditure include reduced personnel costs largely due to Police Department vacancies, and reduced professional
services contracts 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, 2017 totaled
$642.8 million (net of accumulated depreciation), an increase of $10.8 million from 2016. 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 $2.5 million in utility infrastructure assets and $2.4 million in
governmental infrastructure assets.
$11.3 million was spent by proprietary funds on construction projects during the year.
Purchases of government land resulted in an increase of $0.1 million.
$18.5 million was spent by governmental funds on construction projects during the year. Some of the larger projects
in the governmental funds include:
$3.9 million on South 277th (Auburn Way North to Green River Bridge) project
$2.6 million on Auburn Way South Corridor Improvements
$2.0 million on B Street Northwest Reconstruction project
$1.7 million on Auburn Way North Street Preservation project
$1.3 million on West Main St. Multimodal Corridor and ITS Improvements
City of Auburn: 2017 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 $77.7 million. Of this amount, $22.9
million is due to other governments, $27.8 million is general obligation bonds, and $27.0 million is revenue bonds for the
water, sewer and storm utilities. The City currently maintains a rating of Aa3 with Moody’s and a rating of AA+ with Standard
& Poor’s for its general obligation debt.
The following schedule summarizes the City’s bonded debt:
Below is a summary of additional, non-bonded long-term debt of the City:
Washington State law limits the amount of general obligation debt a governmental entity may issue to 7.5% of its total
assessed value. Of the 7.5% limit, 2.5% is for general purposes, 2.5% is for open spaces/parks, and 2.5% is for utilities. Non-
voted (limited tax) general obligation indebtedness is limited to 1.5% of assessed valuation. The combination of unlimited
tax and limited tax general obligation debt for all purposes cannot exceed 7.5% of asse ssed valuation.
Summary of Capital Assets (net of depreciation)
As of 12/31/17 As of 12/31/2016 As of 12/31/17 As of 12/31/2016 As of 12/31/17 As of 12/31/2016
Land 108,890,255$ 108,793,702$ 12,526,187$ 12,526,187$ 121,416,442$ 121,319,889$
Building 53,614,550 55,101,628 2,025,151 2,106,829 55,639,701 57,208,457
Site improvements 7,490,415 7,813,341 207,306,228 203,881,093 214,796,643 211,694,434
Equipment 8,652,792 8,436,499 293,545 265,028 8,946,337 8,701,527
Intangibles 37,967 192,530 5,449,186 5,196,600 5,487,153 5,389,130
Infrastructure 216,159,542 209,040,706 - - 216,159,542 209,040,706
Construction in progress 10,077,359 10,999,486 10,273,608 7,623,079 20,350,967 18,622,565
404,922,880$ 400,377,892$ 237,873,905$ 231,598,816$ 642,796,785$ 631,976,708$
Governmental Activities Business-type Activities Total
Summary of Bonded Debt
Governmental
Activities
Business-type
Activities Total
General obligation bonds 27,411,611$ 362,822$ 27,774,433$
Revenue bonds - 27,035,000 27,035,000
Due to other governments 22,918,300$ - 22,918,300
50,329,911$ 27,397,822$ 77,727,733$
Other Long-Term Debt
Public Works Trust Fund loans 10,394,433$
Capital Lease 382,914$
10,777,347$
City of Auburn: 2017 CAFR Management’s Discussion and Analysis
31
Additional information can be found in note 9 and in the statistical section of this report.
Economic Factors
Over the past year, economic conditions continued to improve locally. Real property values , which had finally recovered to
pre-recession levels by 2016, grew an additional 8.4% in 2017. Property tax receipts grew by 16.2% due in part to this increase
in assessed valuation and in part to the used of banked taxing capacity. Retail sales continued to increase, by 2.7% over 2016
levels, and the rate of unemployment in the County and City remained low. However, building permit revenues decreased
by over 24% reflecting reduced construction activity relative to 2016.
While general economic conditions in the region have improved, and the economic outlook for the City is generally positive,
significant challenges to the City’s overall financial condition remain. In particular, 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 the State level – long-
term fiscal challenges for addressing holes left by one -time budget fixes in the current budget and the need to fund basic
education mandates. Additionally, the State and City continue to grapple with the financial impacts of the phase-out of
streamlined sales tax revenue distributions to cities and the uncertainty of sales tax receipts on out-of-state sales under the
new Marketplace Fairness Act.
Therefore, 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: 2017 CAFR Management’s Discussion and Analysis
32
City of Auburn: 2017 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: 2017 CAFR Basic Financial Statements
34
City of Auburn: 2017 CAFR Basic Financial Statements
35
Governmental Business-Type
Activities Activities Total
ASSETS:
Cash and Cash Equivalents (Note 3)60,013,183$ 43,189,343$ 103,202,526$
Cash with Outside Agencies (391) - (391)
Investments (Note 3)992,430 - 992,430
Receivables
Taxes 306,809 - 306,809
Customer Accounts 486,179 6,884,100 7,370,279
Other Receivables 2,624,305 - 2,624,305
Special Assessments 7,283 - 7,283
Due From Other Governmental Units (Note 6)2,775,623 171,616 2,947,239
Internal Balances (440,475) 440,475 -
Materials and Supplies Inventory 272,670 160,443 433,113
Restricted Assets:
Temporarily Restricted:
Cash and Cash Equivalents (Note 3)20,559,911 6,588,886 27,148,797
Due From Other Governmental Units (Note 6)2,185,905 - 2,185,905
Permanently Restricted:
Cash and Cash Equivalents (Note 3)1,717,134 - 1,717,134
Prepaids 546,773 - 546,773
Long-Term Contracts and Notes 13,473 645,900 659,373
Net Pension Asset (Note 10)6,702,047 - 6,702,047
Investment in Joint Ventures (Note 15)31,356,184 - 31,356,184
Depreciable Capital Assets (Net of Accumulated Depreciation) (Note 7)285,955,266 209,624,924 495,580,190
Non-Depreciable Capital Assets (Note 7)118,967,614 28,248,981 147,216,595
Total Assets 535,041,923 295,954,668 830,996,591
DEFERRED OUTFLOWS OF RESOURCES:
Deferred Outflows from Bond Refunding 5,588 21,837 27,425
Deferred Outflows related to Pensions 2,236,350 906,652 3,143,002
Total Deferred Outflow of Resources 2,241,938 928,489 3,170,427
LIABILITIES:
Accounts Payable 5,607,399 3,673,088 9,280,487
Other Liabilities Payable 785,730 1,382 787,112
Payable From Restricted Assets:
Accrued Interest - 1,485,333 1,485,333
Deposits - 215,194 215,194
Unearned Revenue 13,473 - 13,473
Bonds and Other Debt Payable:
Due Within One Year (Note 9)3,590,679 3,103,484 6,694,163
Due in More Than One Year (Note 9)30,414,688 32,702,154 63,116,842
Due to Other Governmental Units:
Due Within One Year (Note 9)716,100 - 716,100
Due in More Than One Year (Note 9)22,202,200 - 22,202,200
Net Penion Liability (Note 10)11,986,783 5,612,947 17,599,730
Firemen's Pension Liability (Note 10)3,212,435 - 3,212,435
Net OPEB Obligation (Note 11)9,137,985 - 9,137,985
Total Liabilities 87,667,472 46,793,582 134,461,054
DEFERRED INFLOWS OF RESOURCES:
Deferred Inflows related to Pensions 3,589,485 927,497 4,516,982
Total Deferred Inflows of Resources 3,589,485 927,497 4,516,982
NET POSITION
Net Investment in Capital Assets 373,368,906 205,677,614 579,046,520
Restricted:
Capital Projects 27,407,299 - 27,407,299
Nonexpendable Permanent Endowment 1,717,134 - 1,717,134
Debt Service 9,686 1,437,567 1,447,253
Tourist Promotion 200,371 - 200,371
Drug Investigation and Enforcement 381,136 - 381,136
Community Development Block Grant Program 44,904 - 44,904
Central Business District Development 93,710 - 93,710
Rate Stabilization - 419,403 419,403
Unrestricted 42,803,759 41,627,494 84,431,253
Total Net Position 446,026,905$ 249,162,078$ 695,188,983$
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, 2017
City of Auburn: 2017 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 10,384,647$ 1,241,905$ 163,698$ 366,582$
Public Safety 32,746,406 2,523,667 1,936,498 13,227
Transportation 17,904,352 2,118,980 - 11,232,469
Physical Environment 3,217,885 431,580 5,125 220,987
Culture and Recreation 13,539,098 3,073,262 145,325 794,962
Economic Environment 3,859,863 2,400,940 2,000 23,005
Health and Human Resources 674,270 - 5,000 578,270
Interest on Long-Term Debt 1,555,803 - - -
83,882,324 11,790,334 2,257,646 13,229,502
Business-Type Activities
Water 12,408,008 14,781,310 - 1,176,756
Sanitary Sewer 25,360,718 26,369,496 - 873,779
Storm Drainage 8,979,969 9,778,102 - 2,313,033
Solid Waste 14,539,703 15,079,932 106,286 -
Nonmajor Business-Type Activities 2,106,557 2,211,360 - -
63,394,955 68,220,200 106,286 4,363,568
Total Primary Government 147,277,279$ 80,010,534$ 2,363,932$ 17,593,070$
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
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, 2017
Page 1 of 2
City of Auburn: 2017 CAFR Basic Financial Statements
37
Governmental Business-Type
Activities Activity Total
(8,612,462)$ -$ (8,612,462)$
(28,273,013) - (28,273,013)
(4,552,903) - (4,552,903)
(2,560,193) - (2,560,193)
(9,525,549) - (9,525,549)
(1,433,918) - (1,433,918)
(91,000) - (91,000)
(1,555,803) - (1,555,803)
(56,604,841) - (56,604,841)
- 3,550,058 3,550,058
- 1,882,557 1,882,557
- 3,111,166 3,111,166
- 646,515 646,515
- 104,803 104,803
- 9,295,099 9,295,099
(56,604,841)$ 9,295,099$ (47,309,742)$
20,967,953$ -$ 20,967,953$
22,333,454 - 22,333,454
4,540,265 - 4,540,265
10,391,462 - 10,391,462
4,141,146 - 4,141,146
5,253,964 - 5,253,964
787,786 479,132 1,266,918
134,003 444,110 578,113
19,212 - 19,212
51,091 - 51,091
454,436 (454,436) -
69,074,772 468,806 69,543,578
12,469,931 9,763,905 22,233,836
436,774,978 239,398,173 676,173,151
(3,218,004) - (3,218,004)
433,556,974 239,398,173 672,955,147
446,026,905$ 249,162,078$ 695,188,983$
Changes in Net Position
Net (Expense) Revenue and
Page 2 of 2
City of Auburn: 2017 CAFR Basic Financial Statements
38
City of Auburn: 2017 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: 2017 CAFR Basic Financial Statements
40
Other Total
General Arterial Capital Governmental Governmental
Fund Street Improvement Funds Funds
ASSETS:
Cash and Cash Equivalents 32,874,422$ 1,087,394$ 11,229,743$ 20,960,950$ 66,152,509$
Investments (Note 3)992,430 - - - 992,430
Deposits with Fiscal Agent (391) - - - (391)
Receivables:
Taxes 306,809 - - - 306,809
Customer Accounts 125,862 339,839 - 3,793 469,494
Other Receivables 2,274,352 - - 345,829 2,620,181
Special Assessments - - - 7,283 7,283
Interfund Receivable (Note 5)50,000 - 93,782 - 143,782
Inventories 30,453 - - - 30,453
Long-Term Notes and Contracts - - 13,473 - 13,473
Due From Other Governmental Units (Note 6)2,769,412 1,961,355 44,050 180,500 4,955,317
Total Assets 39,423,349 3,388,588 11,381,048 21,498,355 75,691,340
LIABILITIES, DEFERRED INFLOWS AND FUND BALANCES:
Liabilities:
Current Payables 2,974,017 804,452 95,730 961,240 4,835,439
Customer Deposits 427,872 - - - 427,872
Interfund Payable (Note 5)- - - 50,000 50,000
Other Liabilities Payable 188,207 - - 36,954 225,161
Unearned Revenue - - 13,473 - 13,473
Total Liabilities 3,590,096 804,452 109,203 1,048,194 5,551,945
Deferred Inflow of Resources:
Unavailable Revenue-Special Assessments - - - 7,283 7,283
Unavailable Revenue-Other 1,072,471 - - - 1,072,471
Total Deferred Inflow of Resources 1,072,471 - - 7,283 1,079,754
Fund Balances: (Note 1)
Nonspendable 30,453 - - - 30,453
Nonspendable Permanent Endowment - - - 1,717,134 1,717,134
Restricted - 2,584,136 10,794,522 14,758,448 28,137,106
Committed - - - 3,223,108 3,223,108
Assigned 9,315,528 - 477,323 744,188 10,537,039
Unassigned 25,414,801 - - - 25,414,801
Total Fund Balances:34,760,782 2,584,136 11,271,845 20,442,878 69,059,641
Total Liabilities, Deferred Inflows and Fund Balances 39,423,349$ 3,388,588$ 11,381,048$ 21,498,355$ 75,691,340$
The notes to the basic financial statements are an integral part of this statement.
City of Auburn, Washington
BALANCE SHEET
GOVERNMENTAL FUNDS
December 31, 2017
City of Auburn: 2017 CAFR Basic Financial Statements
41
Total governmental fund balances as reported on this statement 69,059,641$
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 396,609,025
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 8,437,884
Prepaids 546,773
Interest receivable on investments 4,124
Net pension asset 3,489,612
12,478,393
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 1,072,471
Unavailabe revenue reported for special assessments 7,283
1,079,754
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 21,111,117
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 (31,376,165)
Premium on Bonds Payable (73,929)
Deferred amount on bond refunding 5,588
Deferred amounts related to pensions (1,326,570)
Interest payable (132,397)
Net pension liability (10,096,427)
Net other postemployment obligations (9,137,985)
Compensated absences payable (2,173,140)
(54,311,024)
Net position of government activities as reported on the statement of net position 446,026,905$
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, 2017
City of Auburn, Washington
City of Auburn: 2017 CAFR Basic Financial Statements
42
Other Total
General Arterial Capital Governmental Governmental
Fund Street Improvement Funds Funds
REVENUES:
Taxes:
Property 20,837,874$ -$ -$ 138,510$ 20,976,384$
Retail Sales & Use 19,441,488 - - 2,891,966 22,333,454
Interfund Utility 3,891,656 - - 648,609 4,540,265
Utility 8,932,920 - - 1,458,542 10,391,462
Excise 519,630 - 3,497,030 124,486 4,141,146
Other - - - 42,535 42,535
Licenses and Permits 1,906,796 - - - 1,906,796
Intergovernmental 6,322,043 7,043,677 30,847 2,790,993 16,187,560
Charges for Services 4,416,518 - - 2,701,256 7,117,774
Fines and Forfeitures 882,254 - - - 882,254
Special Assessments - - - 3,835 3,835
Investment Earnings 349,018 11,173 102,542 209,980 672,713
Miscellaneous 1,096,866 709,222 6,259 153,986 1,966,333
Total Revenues 68,597,063 7,764,072 3,636,678 11,164,698 91,162,511
EXPENDITURES:
Current:
General Government 9,755,757 - - - 9,755,757
Security of Persons and Property 31,464,290 - - 620,086 32,084,376
Physical Environment 3,359,548 - - - 3,359,548
Transportation 3,679,967 9,618,924 - 7,353,647 20,652,538
Economic Environment 3,117,886 - - 762,139 3,880,025
Health and Human Services 674,270 - - - 674,270
Culture and Recreation 11,943,070 - - - 11,943,070
Debt Service:
Principal 57,642 197,376 - 1,380,108 1,635,126
Interest and Other Costs 20,526 12,135 - 1,557,864 1,590,525
Capital Outlay 29,905 - 849,072 1,217,304 2,096,281
Total Expenditures 64,102,861 9,828,435 849,072 12,891,148 87,671,516
Excess (Deficiency) of Revenues
Over (Under) Expenditures 4,494,202 (2,064,363) 2,787,606 (1,726,450) 3,490,995
OTHER FINANCING SOURCES (USES):
Sales of Capital Assets 2,700 - - - 2,700
Insurance Recoveries 134,003 - - - 134,003
Transfers In (Note 5)1,079,000 1,999,610 475,583 3,496,624 7,050,817
Transfers Out (Note 5)(3,100,302) (7,024) (2,023,853) (2,032,099) (7,163,278)
Total Other Financing Sources and Uses (1,884,599) 1,992,586 (1,548,270) 1,464,525 24,242
Net Change in Fund Balances 2,609,603 (71,777) 1,239,336 (261,925) 3,515,237
Fund Balances - January 1, as Previously Reported 32,151,179 2,655,913 10,032,509 20,704,803 65,544,404
Fund Balances - Ending 34,760,782$ 2,584,136$ 11,271,845$ 20,442,878$ 69,059,641$
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, 2017
City of Auburn: 2017 CAFR Basic Financial Statements
43
Net change in fund balances per the Statement of Revenues, Expenditures and Changes in Fund Balance 3,515,237$
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 ($18,432,909)
exceeded depreciation ($16,509,513) in the current period.1,923,396
Certain Capital and Joint Venture activities do not use or provide current financial resources
but increase net position.817,723
Revenues in the Statement of Activities that do not provide current financial resources
are not reported as revenues in the funds:
Property taxes (8,431)
Special assessments (4,114)
Other unavailable revenue (90,700)
Amortization of bond premium 29,141
Investment interest receivable (8,837)
(82,940)
Developer contributions and annexation of infrastructure assets are reported as revenue in the statement
of activities, but do not provide current financial resources and are not reported as fund revenue.2,451,623
Repayment of the principal of long-term debt consumes the current financial resources of
governmental funds but has no effect on the net position. 1,628,867
Internal service funds are used by management to charge the costs of certain activities,
such as insurance and fleet maintenance, to individual funds. The net revenue (expense)
of certain internal service funds is reported with governmental activities.1,829,168
Some expenses reported in the Statement of Activities do not require the use of current
financial resources and therefore are not reported as expenditures in governmental funds.
Amortization of prepaids (109,355)
Change in accrued interest payable 4,595
Change in net pension obligation or asset 1,383,217
Change in net other postemployment benefits (690,154)
Change in compensated absences payable (201,446)
386,857
Change in net position on the Statement of Activities 12,469,931$
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, 2017
City of Auburn: 2017 CAFR Basic Financial Statements
44
Variance with
Final Final Budget
Original Adopted Actual Positive
(GAAP Basis)(GAAP Basis)Results (Negative)
REVENUES:
Taxes:
Property 20,152,000$ 20,652,000$ 20,837,874$ 185,874$
Retail Sales & Use 19,094,300 19,094,300 19,441,488 347,188
Interfund Utility 3,671,300 3,936,300 3,891,656 (44,644)
Utility 8,487,700 8,487,700 8,932,920 445,220
Excise 340,300 340,300 519,630 179,330
Licenses and Permits 2,338,700 2,338,700 1,906,796 (431,904)
Intergovernmental 5,919,680 6,129,110 6,243,965 114,855
Charges for Services 3,981,980 4,361,980 4,416,518 54,538
Fines and Forfeitures 876,100 876,100 882,254 6,154
Investment Earnings 69,000 69,000 237,532 168,532
Miscellaneous 879,500 884,500 1,096,866 212,366
Total Revenues 65,810,560 67,169,990 68,407,499 1,237,509
EXPENDITURES:
Current:
General Government 11,182,750 11,285,933 9,755,757 1,530,176
Security of Persons and Property 32,577,455 33,668,898 31,269,319 2,399,579
Physical Environment 4,053,466 4,073,266 3,359,548 713,718
Transportation 3,760,044 3,817,220 3,679,967 137,253
Economic Environment 3,428,643 3,764,529 3,117,886 646,643
Health and Human Services 639,742 733,542 674,270 59,272
Culture and Recreation 12,083,188 12,152,688 11,943,070 209,618
Debt Service 77,699 77,699 78,168 (469)
Capital Outlay 324,519 30,000 29,905 95
Total Expenditures 68,127,506 69,603,775 63,907,890 5,695,885
Excess (Deficiency) of Revenues
Over (Under) Expenditures (2,316,946) (2,433,785) 4,499,609 6,933,394
OTHER FINANCING SOURCES (USES):
Sales of Capital Assets - - 2,700 2,700
Insurance Recoveries 25,000 25,000 134,003 109,003
Transfers In (Note 5)84,000 79,000 79,000 -
Transfers Out (Note 5)(1,360,476) (3,578,551) (3,100,302) 478,249
Total Other Financing Sources and Uses (1,251,476) (3,474,551) (2,884,599) 589,952
Net Change in Fund Balances (3,568,422) (5,908,336) 1,615,010 7,523,346
Fund Balances - Beginning 16,191,731 21,028,666 21,028,666 -
Fund Balances - Ending 12,623,309$ 15,120,330$ 22,643,676$ 7,523,346$
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 9,799,312
The Fire, Relief & Pension Fund is combined with
the General Fund for purposes of GASB Statement 73 2,317,794
Fund Balance - Ending (GAAP)34,760,782$
The notes to the basic financial statements are an integral part of this statement.
Budget Amounts
For the Year Ended December 31, 2017
City of Auburn, Washington
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
GENERAL FUND
City of Auburn: 2017 CAFR Basic Financial Statements
45
Variance with
Final Final Budget
Original Adopted Actual Positive
(GAAP Basis)(GAAP Basis)Results (Negative)
REVENUES:
Intergovernmental $1,717,965 $10,632,292 $7,043,677 ($3,588,615)
Charges for Services - 466,191 - (466,191)
Investment Earnings 2,600 2,600 11,173 8,573
Miscellaneous 100,000 809,221 709,222 (99,999)
Total Revenues 1,820,565 11,910,304 7,764,072 (4,146,232)
EXPENDITURES:
Current:
Transportation 2,580,646 16,304,793 9,618,924 6,685,869
Debt Service
Principal 197,376 197,376 197,376 -
Interest and Other Costs 12,135 12,135 12,135 -
Total Expenditures 2,790,157 16,514,304 9,828,435 6,685,869
Excess (Deficiency) of Revenues
Over (Under Expenditures (969,592) (4,604,000) (2,064,363) 2,539,637
OTHER FINANCING SOURCES (USES):
Transfers In (Note 5)718,511 3,420,622 1,999,610 (1,421,012)
Transfers Out (Note 5)(4,661) (15,046) (7,024) 8,022
Total Other Financing Sources and Uses 713,850 3,405,576 1,992,586 (1,412,990)
Net Change in Fund Balances (255,742) (1,198,424) (71,777) 1,126,647
Fund Balances - Beginning 1,632,556 2,655,913 2,655,913 -
Fund Balances - Ending 1,376,814$ 1,457,489$ 2,584,136$ 1,126,647$
The notes to the basic financial statements are an integral part of this statement.
Budget Amounts
For the Year Ended December 31, 2017
City of Auburn, Washington
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
ARTERIAL STREET FUND
City of Auburn: 2017 CAFR Basic Financial Statements
46
City of Auburn: 2017 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: 2017 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 5,765,412$ 16,427,725$ 14,545,114$ 4,677,646$ 1,773,446$ 43,189,343$ 16,137,719$
Restricted Cash:
Bond Payments 1,690,316 535,820 804,480 - - 3,030,616 -
Customer Deposits 43,892 79,473 3,422 - 89,180 215,967 -
Other 1,630,313 516,173 1,195,817 - - 3,342,303 -
Customer Accounts 1,363,945 2,745,457 1,066,124 1,701,592 6,982 6,884,100 16,685
Due From Other Governmental Units 17,968 - 70,124 69,534 13,990 171,616 6,211
Inventories 135,450 9,103 7,390 - 8,500 160,443 242,217
Total Current Assets 10,647,296 20,313,751 17,692,471 6,448,772 1,892,098 56,994,388 16,402,832
Noncurrent Assets
Long-Term Contracts and Notes - 645,900 - - - 645,900 -
Capital Assets:
Land 897,971 1,695,023 5,937,014 - 3,996,179 12,526,187 -
Intangible - Water Rights 5,449,186 - - - - 5,449,186 -
Buildings and Equipment 2,509,599 1,255,947 290,575 496,618 4,064,521 8,617,260 25,051,494
Improvements Other Than Buildings 131,463,582 101,366,336 79,177,949 - 11,082,929 323,090,796 117,158
Construction in Progress 8,374,328 1,121,482 459,310 - 318,488 10,273,608 109,048
Less: Accumulated Depreciation (54,538,817) (31,609,927) (26,325,396) (449,569) (9,159,423) (122,083,132) (16,963,844)
Total Capital Assets (Net of A/D)94,155,849 73,828,861 59,539,452 47,049 10,302,694 237,873,905 8,313,856
Total Noncurrent Assets 94,155,849 74,474,761 59,539,452 47,049 10,302,694 238,519,805 8,313,856
Total Assets 104,803,145 94,788,512 77,231,923 6,495,821 12,194,792 295,514,193 24,716,688
DEFERRED OUTFLOW OF RESOURCES:
Deferred Outflow from Bond Refunding - - - - 21,837 21,837 -
Deferred Outflow related to Pensions 312,206 200,138 292,611 51,059 50,638 906,652 310,456
312,206 200,138 292,611 51,059 72,475 928,489 310,456
LIABILITIES:
Current Liabilities:
Current Payables 1,354,856 393,163 391,180 1,364,777 169,112 3,673,088 771,960
Customer Deposits - - - - - - 300
Interfund Payables (Note 5)- - - - 93,782 93,782 -
Loans Payable - Current 634,328 288,262 - - - 922,590 -
Employee Leave Benefits - Current 125,285 103,747 173,857 23,140 18,464 444,493 209,418
Revenue Bonds Payable - Current 871,737 262,685 425,578 - - 1,560,000 -
General Obligation Bonds Payable - Current - - - - 176,401 176,401 -
Accrued Interest 828,486 279,081 377,766 - - 1,485,333 -
Deposits 43,892 79,473 3,422 - 88,407 215,194 -
Other Liabilities Payable 600 172 469 141 - 1,382 41,608
Total Current Liabilities 3,859,184 1,406,583 1,372,272 1,388,058 546,166 8,572,263 1,023,286
Noncurrent Liabilities
Employee Leave Benefits 37,836 31,332 52,506 6,988 5,576 134,238 63,246
Other LT Liabilities Payable - - - - - - 67,861
Loans Payable 3,689,390 2,090,408 - - - 5,779,798 -
Revenue Bonds Payable 14,899,559 4,206,276 7,495,862 - - 26,601,697 -
General Obligation Bonds Payable - - - - 186,421 186,421 -
Net Pension Liability 2,775,633 1,130,142 1,339,843 195,660 171,669 5,612,947 1,890,356
Total Noncurrent Liabilities 21,402,418 7,458,158 8,888,211 202,648 363,666 38,315,101 2,021,463
Total Liabilities 25,261,602 8,864,741 10,260,483 1,590,706 909,832 46,887,364 3,044,749
DEFERRED INFLOW OF RESOURCES:
Deferred Inflow related to Pensions 372,104 198,614 284,225 33,442 39,112 927,497 337,021
NET POSITION:
Net Investment in Capital Assets:75,751,151 67,517,050 52,422,492 47,049 9,939,872 205,677,614 8,204,387
Restricted for:
Debt Service 801,827 237,092 398,648 - - 1,437,567 -
Rate Stabilization - - 419,403 - - 419,403 -
Unrestricted 2,928,667 18,171,153 13,739,283 4,875,683 1,378,451 41,093,237 13,440,987
Total Net Position 79,481,645$ 85,925,295$ 66,979,826$ 4,922,732$ 11,318,323$ 248,627,821$ 21,645,374$
Adjustment to reflect the consolidation
of internal service funds related to
enterprise funds 534,257
Net position of business-type activities 249,162,078$
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, 2017
Enterprise Funds
City of Auburn: 2017 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 14,781,310$ 26,369,496$ 9,778,102$ 15,079,932$ 1,407,320$ 67,416,160$ 14,275,060$
Other Operating Revenue - - - - 804,040 804,040 202,861
Total Operating Revenue 14,781,310 26,369,496 9,778,102 15,079,932 2,211,360 68,220,200 14,477,921
OPERATING EXPENSES:
Operations & Maintenance 3,753,573 19,055,093 3,379,046 12,749,847 1,201,009 40,138,568 10,158,005
Administration 4,672,569 4,464,901 3,372,935 1,770,178 358,309 14,638,892 861,891
Depreciation / Amortization 3,269,581 2,199,711 1,885,931 18,819 510,226 7,884,268 1,862,565
Other Operating Expenses 8,964 6,648 13,085 859 16,254 45,810 -
Total Operating Expenses 11,704,687 25,726,353 8,650,997 14,539,703 2,085,798 62,707,538 12,882,461
Operating Income (Loss)3,076,623 643,143 1,127,105 540,229 125,562 5,512,662 1,595,460
NON-OPERATING REVENUE (EXPENSE):`
Interest Revenue 104,564 164,566 151,733 41,713 16,556 479,132 135,747
Other Non-Operating Revenue 269,264 73,739 78,397 95,095 33,901 550,396 142,037
Gain on Sale of Capital Assets - - - - - - 16,512
Interest Expense (703,321) (258,270) (328,972) - - (1,290,563) (3,580)
Other Non-Operating Expenses - - - - (20,759) (20,759) -
Total Non-Operating Revenue (Expense)(329,493) (19,965) (98,842) 136,808 29,698 (281,794) 290,716
Income (Loss) Before Contributions & Transfers 2,747,130 623,178 1,028,263 677,037 155,260 5,230,868 1,886,176
Capital Contribution 1,176,756 873,779 2,313,033 - - 4,363,568 -
Transfers In (Note 5)2,500,000 800,000 300,000 - 274,937 3,874,937 1,511,700
Transfers Out (Note 5)(2,693,946) (962,905) (672,122) - (400) (4,329,373) (944,803)
Change in Net Position 3,729,940 1,334,052 2,969,174 677,037 429,797 9,140,000 2,453,073
Net Position, January 1 75,751,705 84,591,243 64,010,652 4,245,695 10,888,526 239,487,821 19,192,301
Net Position, December 31 79,481,645$ 85,925,295$ 66,979,826$ 4,922,732$ 11,318,323$ 248,627,821$ 21,645,374$
Change in net position from this statement 9,140,000
Adjustment to reflect the consolidation of internal service fund
activities related to enterprise funds 623,905
Change in net position of business-type activities 9,763,905$
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, 2017
Enterprise Funds
City of Auburn: 2017 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 14,724,460$ 26,292,793$ 9,755,335$ 14,937,407$ 2,212,749$ 67,922,744$ 14,465,507$
Cash Paid to Suppliers for Goods & Services (4,017,089) (21,169,781) (3,548,224) (13,973,052) (812,879) (43,521,025) (6,486,879)
Cash Paid for Taxes - (45) (817) (858) (16,302) (18,022) -
Cash Paid to Employees (3,855,381) (2,512,575) (3,765,255) (478,771) (721,404) (11,333,386) (4,542,201)
Other Cash Received 69,054 - - - - 69,054 (127)
Other Non-Operating Revenue - 1,978 20,988 - 13,740 36,706 -
Net Cash Provided (Used) by Operating Activities 6,921,044 2,612,370 2,462,027 484,726 675,904 13,156,071 3,436,300
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:
Interfund Loan Payable - - - - (39,900) (39,900) -
Operating Grant 170,210 71,903 425,355 90,316 20,161 777,945 57,928
Transfers In 2,500,000 800,000 300,000 - 274,937 3,874,937 1,511,700
Transfers Out (2,693,946) (962,905) (672,122) - (400) (4,329,373) (944,803)
Net Cash Provided (Used) by Noncapital Financing Activities (23,736) (91,002) 53,233 90,316 254,798 283,609 624,825
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES:
Proceeds from Sale of Equipment - - - - - - 189,666
Purchase of Capital Assets (7,634,763) (1,586,105) (2,050,838) - (398,059) (11,669,765) (2,205,690)
Contributed Capital 597,556 458,574 817,846 - - 1,873,976 -
Capital Grants - - - - 20,887 20,887 -
Proceeds from Other Governments - 22,500 - - - 22,500 -
Proceeds from Insurance Settlement 19,970 - - - - 19,970 84,067
Bond Issuance Costs - - - - 10,918 10,918 -
Principal Payment on Debt (1,468,079) (541,127) (413,162) - (171,023) (2,593,391) -
Interest Payment on Debt (814,960) (276,483) (361,994) - (20,759) (1,474,196) (3,580)
Debt Proceeds 91,990 - - - - 91,990 (3,580)
Net Cash Provided (Used) for Capital and Related Financing Activities (9,208,286) (1,922,641) (2,008,148) - (558,036) (13,697,111) (1,939,117)
CASH FLOW FROM INVESTING ACTIVITIES:
Interest Received 104,564 164,566 144,461 41,713 16,556 471,860 135,747
Net Cash Provided (Used) in Investing Activities 104,564 164,566 144,461 41,713 16,556 471,860 135,747
Net Increase (Decrease) in Cash and Cash Equivalents (2,206,414) 763,293 651,573 616,755 389,222 214,429 2,261,335
Cash and Cash Equivalents - Beginning of Year 11,336,347 16,795,898 15,897,260 4,060,891 1,473,404 49,563,800 13,876,384
Cash and Cash Equivalents - End of Year 9,129,933$ 17,559,191$ 16,548,833$ 4,677,646$ 1,862,626$ 49,778,229$ 16,137,719$
CASH AT END OF YEAR CONSISTS OF:
Cash and Cash Equivalents 5,765,412 16,427,725 14,545,114 4,677,646 1,773,446 43,189,343 16,137,719
Restricted Cash - Bond Payments 1,690,316 535,820 804,480 - - 3,030,616 -
Restricted Cash - Customer Deposits 43,892 79,473 3,422 - 89,180 215,967 -
Restricted Cash - Other 1,630,313 516,173 1,195,817 - - 3,342,303 -
Total Cash 9,129,933$ 17,559,191$ 16,548,833$ 4,677,646$ 1,862,626$ 49,778,229$ 16,137,719$
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, 2017
City of Auburn: 2017 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)3,076,623$ 643,143$ 1,127,105$ 540,229$ 125,562$ 5,512,662$ 1,595,460$
ADJUSTMENTS TO RECONCILE OPERATING INCOME TO
NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES:
Depreciation 3,269,581 2,199,711 1,885,931 18,819 510,226 7,884,268 1,862,565
Other Non-Operating Revenue 69,054 1,978 20,988 - 13,740 105,760 42
Asset (Increases) Decreases:
Accounts Receivable (64,903) (78,959) (22,767) (142,525) (6,982) (316,136) (12,583)
Inventory 5,064 (1,022) (373) - (505) 3,164 (17,101)
Liability Increases (Decreases):
Accounts & Vouchers Payable 754,947 (74,038) (408,745) 98,676 54,295 425,135 154,337
Deposits Payable 8,053 2,256 - - 8,371 18,680 -
Wages & Benefits Payable (135,737) (85,965) (141,900) (23,148) (23,209) (409,959) (157,847)
Compensated Absences Payable (61,638) 5,266 1,788 (7,325) (5,594) (67,503) 11,427
Total Adjustments 3,844,421 1,969,227 1,334,922 (55,503) 550,342 7,643,409 1,840,840
Net Cash Provided (Used) by Operating Activities 6,921,044$ 2,612,370$ 2,462,027$ 484,726$ 675,904$ 13,156,071$ 3,436,300$
SCHEDULE OF NONCASH INVESTING, CAPITAL AND
FINANCING ACTIVITIES
Capital Assets Acquired by Contributed Capital 579,200 415,205 1,495,187 - - 2,489,592 -
Total Non Cash Investing, Capital and Financing Activities 579,200$ 415,205$ 1,495,187$ -$ -$ 2,489,592$ -$
The notes to the basic financial statements are an integral part of this statement.
City of Auburn, Washington
STATEMENT OF CASH FLOWS
For the Fiscal Year Ended December 31, 2017
PROPRIETARY FUNDS
City of Auburn: 2017 CAFR Basic Financial Statements
52
City of Auburn: 2017 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 agency fund is custodial
in nature; therefore, no annual budget is adopted.
AGENCY FUNDS
The Agency Fund
This fund accounts for the funds over which the City is strictly a short-term custodian.
City of Auburn: 2017 CAFR Basic Financial Statements
54
Agency
Fund
ASSETS:
Cash and Cash Equivalents 527,745$
Receivables:
Customer Accounts 6,853
Total Assets 534,598
LIABILITIES:
Current Payables 485,094
Due to Other Governmental Units 49,504
Total Liabilities 534,598
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, 2017
City of Auburn: 2017 CAFR Notes to the Financial Statements
55
City of Auburn
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2017
Note 1 – Summary of Significant Accounting Policies ........................................................................................................ 56
A. Reporting Entity ........................................................................................................................................... 56
B. Basic Financial Statements .......................................................................................................................... 56
C. Measurement Focus, Basis of Accounting, and Basis of Presentation ..................................................... 57
D. Budget and Budgetary Accounting ............................................................................................................. 60
E. Assets, Liabilities and Fund Balance ............................................................................................................ 61
1. Deposits and Investments .................................................................................................................... 61
2. Receivables ............................................................................................................................................ 61
3. Interfund Receivables and Payables .................................................................................................... 61
4. Amounts Due From Other Governmental Units .................................................................................. 62
5. Inventories and Prepaid Expenses ....................................................................................................... 62
6. Restricted Assets .................................................................................................................................. 62
7. Interfund Transactions ......................................................................................................................... 62
8. Capital Assets ........................................................................................................................................ 62
9. Pensions ................................................................................................................................................ 63
10. Deferred Outflows/Inflows of Resources ............................................................................................ 63
11. Compensated Absences ....................................................................................................................... 63
12. Unearned Revenues.............................................................................................................................. 63
13. Fund Balance Components – Proprietary Funds ................................................................................. 64
14. Fund Balance Components – Governmental Funds ............................................................................ 64
F. Revenues, Expenditures and Expenses ...................................................................................................... 65
G. Estimates ...................................................................................................................................................... 66
Note 2 – Stewardship, Compliance and Accountability ................................................................................................... 66
Note 3 – Deposits and Investments .................................................................................................................................. 66
Note 4 – Property Taxes .................................................................................................................................................... 70
Note 5 – Interfund Activity ................................................................................................................................................ 72
Note 6 – Due From Other Governmental Units ................................................................................................................ 74
Note 7 – Capital Assets and Depreciation ......................................................................................................................... 75
Note 8 – Capital Lease Obligation ..................................................................................................................................... 76
Note 9 – Long-Term Liabilities ........................................................................................................................................... 77
Note 10 – Pension Plans ...................................................................................................................................................... 81
Note 11 – Other Post-Employment Benefits ...................................................................................................................... 92
Note 12 – Association of Washington Cities Employment Benefit Trust .......................................................................... 94
Note 13 – Construction Commitments ............................................................................................................................... 95
Note 14 – Cemetery Endowed Care Fund ........................................................................................................................... 95
Note 15 – Joint Ventures / Related Party ............................................................................................................................ 96
Note 16 – Jointly Governed Organization / Related Party ................................................................................................. 99
Note 17 – Contingencies and Litigations .......................................................................................................................... 100
Note 18 – Risk Management and Insurance ..................................................................................................................... 100
Note 19 – Tax Abatements ................................................................................................................................................. 101
Note 20 – Change in Accounting Principle ......................................................................................................................... 102
City of Auburn: 2017 CAFR Notes to the Financial Statements
56
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 2017 financial statements have been presented in accordance with the following new Governmental Accounting
Standards Board (GASB) Statements:
a. GASB Statement No. 73 – Accounting and Financial Reporting for Pensions and Related Assets That Are Not within the
Scope of GASB Statement 68, and Amendments to Certain Provisions of GASB Statements 67 and 68. The objective of
this statement is to improve the usefulness of information about pensions included in the general purpose external
financial reports of state and local governments for making decisions and assessing accountability. This Statement
features two effective dates. The requirements of Statement 73 that address accounting and financial reporting by
employer and governmental non-employer contributing entities for pensions that are not within the scope of
Statement 68 were incorporated into the City’s 2016 CAFR. The requirements of Statement 73 for pension plans
that are within the scope of Statement 67 or for pensions that are within the scope of Statem ent 68 are
implemented in the City’s 2017 CAFR. There is no material impact to the City in implementing this standard.
b. GASB Statement No. 82 - Pension Issues. This statement addresses issues regarding (1) the presentation of payroll-
related measures in required supplementary information, (2) the selection of assumptions and the treatment of
deviations from the guidance in an Actuarial Standard of Practice for financial reporting purposes, and (3) the
classification of payments made by employers to satisfy employee (plan member) contribution requirements. There
is no material impact to the City in implementing this standard.
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) t he
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. (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.
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,
City of Auburn: 2017 CAFR Notes to the Financial Statements
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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, deferred inflows and liabilities of the
primary government. The net position section of this statement represents the residual amount of assets and their
associated liabilities, deferred outflow and deferred inflows 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 the outstanding balances of any borrowing (bonds, loans) used for acquisition, construction, or
improvement of those 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 wit h 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 particu lar
function or activity. Taxes and other items that are not properly included among function or activi ty revenues are instead
reported as general revenues.
Separate financial statements are included for government al 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 fund financial statements. Governmental fund 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
City of Auburn: 2017 CAFR Notes to the Financial Statements
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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 requiremen ts 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 “unavailable 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 ar e 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 incu rred, 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 and agency 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 these balance sheets.
Reported fund balance is considered a measure of “available spendable resources”. Governmental fund operating
statements focus on measuring cash flows rather than net income; and 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 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 is used for major street construction.
c. Debt Service funds – These funds account for the accumulation of resources for, and the payment of, gen eral
long-term and special assessment debt principal, interest, and related costs. Th ese 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”.
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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 proprietary
fund activity are included on the 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 sew er
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.
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. Fiduciary funds are classified for accounting measurement
purposes as either a governmental fund or a proprietary fund. The city has one fiduciary fund, an Agency Fund. The
Agency fund is custodial in nature on behalf of another individual, entity, or government and does not involve a
measurement of results of operations.
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D. Budget and Budgetary Accounting
The City of Auburn budgets in accordance with the Revised Code of Washington (RCW) 35A.33 for the general fund 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 devel oped. 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.
Original Final
Budget Revisions Budget
Governmental Funds
General Fund 64,735,515$ 3,742,398$ 68,477,913$
Total Governmental Funds 64,735,515 3,742,398 68,477,913
Special Revenue Funds:
Local Street 1,600,000$ 1,264,398$ 2,864,398$
Arterial Street 12,320,712 6,484,926 18,805,638
Hotel/Motel Tax 86,000 141,500 227,500
Arterial Street Preservation 2,884,378 2,112,193 4,996,571
Drug Forfeiture Fund 273,027 - 273,027
Housing and Community Development 440,000 715,398 1,155,398
Business Improvement Area 55,000 - 55,000
Cumulative Reserve 1,917,084 36,214 1,953,298
Mitigation Fees 1,221,827 2,719,018 3,940,845
Total Special Revenue Funds 20,798,028 13,473,647 34,271,675
Total Budgeted Funds 85,533,543$ 17,216,045$ 102,749,588$
ORIGINAL AND SUPPLEMENTAL APPROPRIATIONS
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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, 2017, the Washington State Local Government
Investment Pool (LGIP) was holding $116,427,623 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.
Investments are recorded at fair value or amortized cost. 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 amortized cost.
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 t he
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.
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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 service 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.
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 t he
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
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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.
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
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.
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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, wi thdraw 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.
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 cate gories
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.
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The following shows the composition of the fund balance of the governmental funds for the fiscal year ended December
31, 2017:
F. Revenues, Expenditures and Expenses
Operating revenues and expenses for the proprietary fund are those that result from providing services and producing and
delivering goods and/or services in connection with a proprietary fund’s principal ongoing operations. For the city,
operating expenses for proprietary funds and internal service funds include the cost of sales and services, administrative
expenses, and depreciation of capital assets. All revenues and expenses not meeting this definition are reported as non -
operating revenues and expenses.
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.
Arterial Capital Other Total
General Street Improvement Governmental Governmental
Fund Fund Fund Funds Funds
Nonspendable
Inventory 30,453$ -$ -$ -$ 30,453$
Cemetery Endowment -$ -$ -$ 1,717,134$ 1,717,134$
Total Nonspendable 30,453 - - 1,717,134 1,747,587
Restricted
Major Street Construction - 2,584,136 - - 2,584,136
REET 1 Allowable Projects - - 4,824,406 - 4,824,406
REET 2 Allowable Projects - - 5,970,116 - 5,970,116
Arterial Street Presevation Fund - - - 1,557,947 1,557,947
Parks and Trails Construction Projects - - - 1,018,032 1,018,032
City Tourism Promotion - - - 200,371 200,371
Drug Investigation and Enforcement - - - 381,136 381,136
Community Development Block Grant Program - - - 44,904 44,904
Recreational Trail Development - - - 57,022 57,022
Downtown Business Area Improvements - - - 93,710 93,710
Street and Fire Service Mitigation Fees - - - 11,395,640 11,395,640
Debt Service - - - 9,686 9,686
Total Restricted - 2,584,136 10,794,522 14,758,448 28,137,106
Committed
Local Street Improvements (Save our Streets)- - - 2,766,701 2,766,701
Arterial Street Preservation - - - 456,407 456,407
Total Committed - - - 3,223,108 3,223,108
Assigned
Appropriations Over Estimated Revenue 9,315,528 - - - 9,315,528
Arterial Street Preservation Fund - - 477,323 25,483 502,806
Drug Investigation and Enforcement - - - 3,918 3,918
Recreation Trail Development - - - 504 504
Downtown Business Area Improvements - - - 763 763
Local Street Improvements - - - 176,649 176,649
School Administration Fees - - - 56,115 56,115
Cemetery Capital Enhancement and Maintenance - - - 94,375 94,375
Downtown Infrastructure Improvements - - - 374,966 374,966
Debt Service - - - 11,415 11,415
Total Assigned 9,315,528 - 477,323 744,188 10,537,039
Unassigned
Unassigned 25,414,801 - - - 25,414,801
Total Unassigned 25,414,801 - - - 25,414,801
Total Fund Balances 34,760,782$ 2,584,136$ 11,271,845$ 20,442,878$ 69,059,641$
Governmental Fund Balances
December 31, 2017
Major
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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, 2017, the carrying amount of the City’s cash demand deposits with Key Bank totaled $6,129,754 while the
bank balance was $6,341,880. In addition, the balance of the City’s interest bearing checking account with Opus Bank totaled
$10,020,030. Furthermore, there was $18,800 in petty cash ($10,000 in the Drug Forfeiture Fund to be used for enforcements
purposes, $8,800 in various petty cash and cashier change funds).
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 such as the State Investment Pool are stated at amortized cost. Other investments are shown on
the statement of net position at fair value as of December 31, 2017. In accordance with GASB Statement 79, the state
investment pool (LGIP) is reported at amortized cost, and is operated in a manner consistent with the Securities and
Exchange Commission’s Rule 2a-7 of the Investment Company Act of 1940. The LGIP meets the maturity, quality,
diversification and liquidity requirements as set forth in GASB Statement 79. The LGIP is an unrated external investment
pool, and was authorized by Chapter 294, Laws of 1986, and is managed and operated by the Washington State Treasurer.
The LGIP does not have any legally binding guarantees of share values. The LGIP does not impose liquidity fees or redemption
gates on participant withdrawals.
The Office of the State Treasurer prepares a stand -alone LGIP financial report. A copy of the report is available from the
Office of the State Treasurer, PO Box 40200, Olympia, Washington 98504-0200, online at http://www.tre.wa.gov.
During 2017, the net decrease in the fair value of investments being held for more than one year is $4,740 at year-end.
City of Auburn: 2017 CAFR Notes to the Financial Statements
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As of December 31, 2017, the City had the following investments and maturities:
The city measures and reports investments at fair value using the valuation input hierarchy established by generally accepted
accounting principles, as follows:
*Level 1 – Quoted prices in active markets for identical assets or liabilities;
*Level 2 – These are quoted market prices for similar assets or liabilities, quoted prices for identical or similar assets or
liabilities in markets that are not active, or other quoted prices that are not observable;
*Level 3 – Unobservable inputs for an asset or liability.
Fair Less than 1 to 2 2 to 3 Greater than
Investment Type Value 1 year years years 3 years
US Treasuries 992,430$ -$ 992,430$ -$ -$
992,430$ -$ 992,430$ -$ -$
Reconciliation to government-
wide statement of net position:
Total investments above 992,430$
Plus: cash in checking 16,149,783
Plus: petty cash 18,800
Plus: cash with outside agency (391)
Less: cash investments in fiduciary funds (527,745)
Total cash and investments at fair value 16,632,873$
Amortized
Investment Type Cost
State investment pool (LGIP)116,427,623 116,427,623$ -$ -$ -$
116,427,623$ 116,427,623$ -$ -$ -$
Total cash and investments, government-
wide statement of net position 133,060,496$
Schedule of Investments by Maturities
As of December 31, 2017
Investment maturities
Governmental Business-Type
Activities Activities Total
Cash and Cash Equivalents 60,013,183$ 43,189,343$ 103,202,526$
Cash with Outside Agencies (391) - (391)
Investments 992,430 - 992,430
Temporarily Restricted:
Cash and Cash Equivalents 20,559,911 6,588,886 27,148,797
Permanently Restricted:
Cash and Cash Equivalents 1,717,134 - 1,717,134
83,282,267$ 49,778,229$ 133,060,496$
Reconciliation of Cash and Investments
Government-Wide Statement of Net Position
As of December 31, 2017
City of Auburn: 2017 CAFR Notes to the Financial Statements
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At December 31, 2017, the city had the following investments measured at fair value:
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 five 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 wil l 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, Fede ral 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
Quoted Prices in
Active Markets for
Identical Assets
Significant
Other
Observable
Inputs
Significant
Unobservable
Inputs
Investments by Fair Value Level 12/31/2017 (Level 1)(Level 2)(Level 3)
US Treasuries - Federal National Mortgage Assoc.992,430$ 992,430$ -$ -$
Total Investments by Fair Value Level 992,430$ 992,430$ -$ -$
Investments and Derivative Instruments Measured at Fair Value
As of December 31, 2017
Fair Value Measurements Using
City of Auburn: 2017 CAFR Notes to the Financial Statements
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As of December 31, 2017, the City had investments in a limited number of investment instruments as follows:
U.S. Treasuries
State Local Government Investment Pool
With the exception of the State Local Government Investment Pool which is not rated, all other investments above carried
a rating of Aaa by Moody’s rating service at December 31, 2017.
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. City investment policy restricts security holdings to 25 - 40% of
the City’s total investment portfolio in a single security type. This restriction excludes US Treasury obligations and the
Washington State Local Government Investment Pool both of which may comprise 100% of the total investment portfolio.
Other information
Effective 2002, the City has established arrangements with Bank of New York for safekeeping of all investments.
The following is a schedule of investments by fund type:
State
Investment U.S.
Pool Securities Total
General Fund -$ 992,430$ 992,430$
Permanent Fund - -
Enterprise Funds - - -
Internal Service Funds - - -
Fiduciary Funds - - -
Treasurer's Residual Funds 116,427,623 - 116,427,623
Total 116,427,623 992,430$ 117,420,053$
As of December 31, 2017
Schedule of Investments by Fund Category and Investment Type
City of Auburn: 2017 CAFR Notes to the Financial Statements
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NOTE 4 – PROPERTY TAXES
Property taxes received during tax year 2017 were $20,976,384 including collection of prior year delinquent assessments.
Property taxes assessed for collection in tax year 2017 were based on a regular tax levy of $2.05 per $1,000 on a total 2016
assessed value of $9,555,039,113.
For levy year 2017, to be received in 2018, the City’s regular tax levy is $2.20 per $1,000 on a 2017 assessed valuation of
$10,559,150,607, as of December 31, 2017, for a total regular levy of $21,548,429. 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, 2017, the debt limits for the City were as follows:
The County Treasurer acts as an agent to collect property taxes levied in the county for all taxing authorities. Taxes are l evied
annually on January 1 on property values listed as of the prior August 31. The County assesses property at 100% of fair market
value. A revaluation of all property is required every year and a physical inspection is required at least once every six years.
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 $50. 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 pe nalties
if not paid as scheduled. No allowance for uncollectable taxes is established because delinquent taxes are considered fully
collectable.
At year-end, property taxes are recorded as a receivable with the portion not expected to be collected within 60 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 $1,000
of value. If the taxes of all districts exceed this amount, each is proportionately reduced until the total is at or below t he
1% limit.
For Parks or
Without General For Open Space
a Vote Purposes Utilities Development Total
Item 1.50%1.00%2.50%2.50%Capacity
Legal Limit 158,387,259$ 105,591,506$ 263,978,765$ 263,978,765$ 791,936,295$
Outstanding indebtedness (54,208,225) - - - (54,208,225)
Margin available 104,179,034$ 105,591,506$ 263,978,765$ 263,978,765$ 737,728,070$
With a Vote
City of Auburn: 2017 CAFR Notes to the Financial Statements
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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: 2017 CAFR Notes to the Financial Statements
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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 and transfers into capital
project and debt service funds. Interfund transfers for the year ended December 31, 2017 were as follows:
Funds Transfer In Transfer Out
Governmental funds:
General 79,000$ 3,100,302$
Cumulative Reserve 1,000,000 -
Total general fund 1,079,000 3,100,302
Special revenue funds:
Arterial Streets 1,999,610 7,024
Local Streets (other governmental)150,000 5,826
Hotel / Motel tax (other governmental)- 5,000
Arterial Street Preservation (other gov't)194,915 51,776
Mitigation Fees (other governmental)- 1,969,497
Total special revenue funds 2,344,525 2,039,123
Debt service funds:
1998 Library GO (other governmental)283,850 -
2010 A&B Annex (other governmental)1,316,610 -
2010 C&D Local Revitalization (other gov't)222,510 -
LID 250 (other governmental)374,615 -
Total debt service funds 2,197,585 -
Capital projects funds:
Municipal Park Construction (other gov't)954,124 -
Capital Improvements 475,583 2,023,853
Total capital projects funds 1,429,707 2,023,853
Proprietary funds:
Water 2,500,000 2,693,946
Sewer 800,000 962,905
Storm Drainage 300,000 672,122
Airport (non-major enterprise)274,937 -
Cemetery (non-major enterprise)- 400
Total proprietary funds 3,874,937 4,329,374
Internal service funds:
Insurance 670,715 -
Facilities - 888,503
Innovation & Technology 368,953 56,300
Equipment Rental 472,032 -
Total internal service funds 1,511,700 944,803
Total 12,437,454$ 12,437,454$
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 1/1/2017 New Loans Repayments 12/31/2017
Housing & Comm. Dev.General fund 50,000$ 50,000$ 50,000$ 50,000$
Airport Fund Capital Improvement 133,682 - 39,900 93,782
Parks Construction General fund 400,000 - 400,000 -
Total interfund loans 583,682$ 50,000$ 489,900$ 143,782$
All interfund loans are considered short-term cash loans.
*The purpose of the interfund loan to Housing & Community Development is to cover authorized expenditures while the City waits for
reimbursement of federal Community Development Block Grant monies.
*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) was to cover authorized expenditures
while the City waited for reimbursement of federal, state, and local grant monies.
Interfund Loans
City of Auburn: 2017 CAFR Notes to the Financial Statements
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NOTE 6 – DUE FROM OTHER GOVERNMENTAL UNITS
As of December 31, 2017 the City had receivables due from other governmental units as follows:
General Fund:
WSDOT -Excavation Permits 300$
King Conservation District -Farmer's Market 10,094
King County District Court 510,117
King County Library Systems 7,620
King County -Real Estate Excise Taxes 299,559
King County Sheriff's - Registered Sex Offender Grant 370
Pierce County - Real Estate Excise Taxes 12,864
Muckleshoot Indian Tribe 266,528
Department of Commerce -VNET 1,588
Seattle Police Dept -US Department of Justice JAG Grant 23,961
US Department of Justice -Bulletproof Vest Program 4,985
US Department of Justice -COPS Hiring Program 55,389
WA Auto Theft Prevention Authority - Auto Theft Prevention Grant 74,981
WA State Criminal Justice Training 11,586
WA State Military Department -EMPG Grant 12,459
WA State Traffic Safety Commission - Grants 8,427
WA State Treasurer - Sales Taxes 1,468,586
Total General Fund 2,769,412
Arterial Street Fund:
WA State Transportation Improvement Board - Arterial Street Imp.1,292,367
WA Dept. of Transportation - Arterial street imp.668,988
Total Arterial Street Fund 1,961,355
Arterial Street Preservation Fund:
WA Dept. of Transportation - Arterial street imp.7,939
Drug Forfeiture Fund:
Pierce County Sheriff's Department -TNET 7,074
Pierce County Sheriff's Department -OCDET 3,530
Total Drug Forfeiture Fund 10,605
Housing & Community Development:
U.S. Dept. of Housing - Community Development Block Grant 161,956
General Government Capital Improvements:
4Culture -Grant 9,903
Pierce County - Real Estate Excise Taxes 32,325
WA State Transportation Improvement Board -Grant 1,821
44,050
Water Fund:
Valley Communications -Lease 1,000
Storm Fund:
City of Algona -Decant Admin Fee 90
City of Pacific -Decant Admin Fee 300
King Conservation District 20,000
WA State Department of Ecology 49,734
Total Storm Drainage Fund 70,124
Solid Waste Fund:
King County - Local hazardous waste management grant 14,659
King County - Waste reduction and recycling grant 54,874
Total Solid Waste fund 69,534
Water Capital Fund:
WA State Military Department -Grant 16,968
Airport Capital Fund
Federal Aviation Administration 13,990
Facilities Fund:
VRFA 15
Information Services Fund:
City of Algona 500
City of Pacific 3,620
VRFA 2,077
Total Information Services fund 6,196
Total 5,133,144$
Reconciliation to government-wide statement of net assets:
Total above due from other governmental units 5,133,144
Amount due to fiduciary fund -
Total due from other governmental units,
5,133,144$
Due from Other Governmental Units
government-wide statement of net assets
City of Auburn: 2017 CAFR Notes to the Financial Statements
75
NOTE 7 – CAPITAL ASSETS AND DEPRECIATION
Capital asset activity for the year ended December 31, 2017 is as follows:
Balance Decreases/Balance
1/1/17 Increases Adjustments 12/31/17
Governmental activities:
Capital assets, not being depreciated:
Land 108,793,702$ 96,553$ -$ 108,890,255$
Construction in progress 10,999,486 10,042,632 (10,964,759) 10,077,359
Total capital assets, not being depreciated 119,793,188 10,139,185 (10,964,759) 118,967,614
Capital assets, being depreciated:
Buildings 73,554,732 61,547 - 73,616,279
Improvements other than buildings 22,557,659 447,780 - 23,005,439
Machinery and equipment 28,288,914 2,309,293 (1,034,486) 29,563,721
Intangibles 1,095,684 - - 1,095,684
Infrastructure 365,765,293 21,097,174 - 386,862,467
Total capital assets being depreciated 491,262,282 23,915,794 (1,034,486) 514,143,590
Less: accumulated depreciation for:
Buildings (18,453,104) (1,548,625) - (20,001,729)
Improvements other than buildings (14,744,318) (770,706) - (15,515,024)
Machinery and equipment (19,852,415) (1,919,846) 861,332 (20,910,929)
Intangibles (903,154) (154,563) - (1,057,717)
Infrastructure (156,724,587) (13,978,338) - (170,702,925)
Total accumulated depreciation (210,677,578) (18,372,078) 861,332 (228,188,324)
Total capital assets, being depreciated, net 280,584,704 5,543,716 (173,154) 285,955,266
Governmental activities capital assets, net 400,377,892$ 15,682,901$ (11,137,913)$ 404,922,880$
Business-type activities:
Capital assets, not being depreciated:
Land 12,526,187$ -$ -$12,526,187$
Water Rights 5,196,600 252,586 - 5,449,186
Construction in progress 7,623,079 11,310,392 (8,659,863) 10,273,608
Total capital assets, not being depreciated 25,345,866 11,562,978 (8,659,863) 28,248,981
Capital assets, being depreciated:
Buildings 6,039,603 37,283 - 6,076,886
Improvements other than buildings 311,931,706 11,159,092 - 323,090,798
Machinery and equipment 2,480,505 59,867 - 2,540,372
Total capital assets being depreciated 320,451,814 11,256,242 - 331,708,056
Less: accumulated depreciation for:
Buildings (3,932,774) (118,961) - (4,051,735)
Improvements other than buildings (108,050,613) (7,733,957) - (115,784,570)
Machinery and equipment (2,215,477) (31,350) - (2,246,827)
Total accumulated depreciation (114,198,864) (7,884,268) - (122,083,132)
Total capital assets, being depreciated, net 206,252,950 3,371,974 - 209,624,924
Business-type activities capital assets, net 231,598,816$ 14,934,952$ (8,659,863)$ 237,873,905$
Schedule of Capital Asset Activity
City of Auburn: 2017 CAFR Notes to the Financial Statements
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Capital asset activity for the year ended December 31, 2017 is as follows:
Depreciation/amortization expense was charged to functions/programs of the City as follows :
The 2017 total interest cost incurred for business-type activities was $1,331,752 of which $1,290,563 was charged to expense
and $41,189 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:
Assets Acquired Through Capital Leases
Governmental
Asset Activities
Auburn Avenue Theater $ 749,110
John Deere Excavator 204,710
Less: Accumulated Depreciation (638,739)
Total Assets Acquired Through Capital Leases $ 315,081
Governmental activities:
General government 1,017,296$
Public safety 440,566
Transportation 13,565,902
Physical environment -
Culture and recreation 1,485,749
Economic environment -
Capital assets held by the City's internal service funds are charged to the various
functions based on their usage of the assets 1,862,565
Total depreciation/amortization expense - governmental activities 18,372,078$
Business-type activities:
Water 3,269,581$
Sanitary sewer 2,199,711
Storm water 1,885,931
Solid waste 18,819
Golf course -
Airport 462,843
Cemetery 47,383
Total depreciation expense - business-type activities 7,884,268$
City of Auburn: 2017 CAFR Notes to the Financial Statements
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The future minimum lease obligation and the net present value of these minimum lease payments as of December 31, 201 7,
were as follows:
Schedule of Future Minimum Lease Payments
Lease Payable
Theater Excavator Total
2018 79,339 44,342 123,681
2019 79,339 44,342 123,681
2020 79,339 22,582 101,921
2021 80,334 - 80,334
Total minimum lease payments 318,351 111,266 429,617
Less: Amounts representing interest
(43,104)
(4,593)
(47,697)
Present value of future minimum lease payments $ 275,247 $ 106,673 $ 381,920
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:
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, 2017 is $270,000.
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.
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.
2016 Limited Tax General Obligation Refunding Bonds were issued for the primary purposes of (a) refunding on a current
basis the 2005 Limited Tax General Obligation Refunding Bonds and (b) refunding on an advance basis the 2006A Limited
Tax General Obligation Bonds.
The net proceeds were used to purchase United States government securities. Those securities were depos ited into an
irrevocable trust with an escrow agent to (a) pay the full outstanding principal and interest on the 2005 Bonds on the
redemption date and to (b) provide for all future debt service payments on the 2006A bonds which were refunded. As
a result of these transactions, the 2005 and 2006A bonds are considered to be defeased and the liability for those bonds
City of Auburn: 2017 CAFR Notes to the Financial Statements
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has been removed from the City’s financial statements. The remaining balance of outstanding defeased debt as of
December 31, 2017 is $3,134,433.
Revenue Bonds are payable from water, sewer and storm drainage utility revenues generated by those enterprise funds.
State of Washington Public Works Trust Fund and Drinking Water State Revolving Fund Loans are a direct responsibility of
the City. Auburn currently has nine outstanding loans with a remaining total balance of $10,394,433. Seven of the loans are
for water and sewer construction projects. The loans are being repaid from water and sewer fund revenues over a 20 -year
period that begins upon each project completion (PWTF 1999, PWTF 2001, PWTF 2002, PWTF 2004, PWTF 2006, PWTF 2013,
& DWSRF 2016). The other two loans are for arterial street improvements and are being repaid from arterial street fund
revenues over a 20-year period that began in 2009 upon project completion (PWTF 2008) and over a 29-year period that
began in 2013 upon project completion (PWTF 2012).
Compensated Absences are paid by those funds that have employees. These are mostly payable by the General fund and
enterprise funds.
The following schedules summarize the long-term debt transactions of the City for the year ended December 31, 2017. The
first table summarizes all debt transactions for Auburn, while the second provides detailed information on all long-term debt.
Additional schedules reflect total annual debt service requirements to maturity and the reconciliation of debt by fund type.
General
Obligation (1)Utility
Employee
Leave Benefit
Other Post
Employment
Benefits
Net Pension
Liability
Firemen's
Pension
Liability Premium
Due To Other
Governments Total
Long-term liabilities payable 12/31/16 33,685,361$ 36,067,767$ 2,879,166$ 8,447,831$ 22,652,229$ -$ 1,313,939$ 23,612,700$ 128,658,993$
Added 937 91,990 2,307,540 1,268,760 - 3,212,435 - - 6,881,662
Retired (1,836,905) (2,422,368) (2,162,171) (578,606) (5,052,499) - (113,312) (694,400) (12,860,261)
Long-term liabilities payable 12/31/17 31,849,393$ 33,737,389$ 3,024,535$ 9,137,985$ 17,599,730$ 3,212,435$ 1,200,627$ 22,918,300$ 122,680,394$
(1) Includes capital leases
CHANGES IN LONG-TERM LIABILITES SUMMARY
Year Principal Interest Principal Interest Principal Interest Principal (1)Interest
2018 2,304,062 2,939,960 103,252 19,258 2,679,966 1,402,903 5,087,280 4,362,121
2019 2,094,636 2,843,041 108,796 13,713 2,734,966 1,343,198 4,938,398 4,199,952
2020 1,969,766 2,755,227 95,486 7,926 2,612,597 1,272,380 4,677,849 4,035,533
2021 2,039,702 2,665,409 75,381 2,776 2,672,597 1,206,698 4,787,680 3,874,883
2022 2,109,908 2,564,978 - - 2,505,512 1,118,027 4,615,420 3,683,004
2023-2027 10,919,809 11,108,478 - - 12,967,816 4,073,754 23,887,625 15,182,232
2028-2032 11,987,250 7,719,511 - - 10,203,041 1,115,299 22,190,291 8,834,810
2033-2037 13,236,450 3,596,130 - - 584,966 10,237 13,821,416 3,606,367
2038-2042 4,031,150 282,084 - - 467,972 2,925 4,499,122 285,009
Totals 50,692,733$ 36,474,818$ 382,915$ 43,673$ 37,429,434$ 11,545,420$ 88,505,082$ 48,063,912$
(1)88,505,082$ Principal debt service requirements to maturity
3,024,535 Employee Leave Benefits
9,137,985 Other Post Employment Benefits
17,599,730 Net Pension Liability
3,212,435 Firemen's Pension Liability
1,200,627 Premium
122,680,394$ Long Term Liabilities 12/31/2017
Obligation Bonds Obligation Bonds/Loans Long-Term Debt
DEBT SERVICE REQUIREMENT TO MATURITY
General Capital Lease Utility Total
City of Auburn: 2017 CAFR Notes to the Financial Statements
79
Interest Maturity Original Principal Balance Balance Due Within
Issue Name Rates Date Amount(2) Installments 12/31/16 Additions Reductions 12/31/17 One Year
GOVERNMENTAL DEBT
General Obligation Bonds:
LTGO 2010A (1)2.00-4.50%12/1/2018 4,385,000 $235,000 - $720,000 530,000$ -$ (260,000)$ 270,000$ 270,000$
LTGO 2010B (1)3.27-6.24%12/1/2039 20,365,000 $535,000 - $1,240,000 19,285,000 - (560,000) 18,725,000 575,000
LTGO 2010D (1)3.27-6.19%12/1/2034 6,320,000 $220,000 - $445,000 5,875,000 - (230,000) 5,645,000 240,000
LTGO Refunding 2016 - Golf/Cemetery 1.64 -1.64%12/1/2025 3,166,930 $71,470 - $366,159 3,095,460 - (323,849) 2,771,611 326,560
Total General Obligation Bonds 34,236,930 28,785,460 - (1,373,849) 27,411,611 1,411,560
Capital Leases:
Auburn Avenue Theater 6.58%12/31/2021 695,504 $4,114 - $6,514 330,151 937 (57,642) 273,446 61,644
John Deere Financial Excavator Lease 3.00%7/15/2020 204,710 $3,695 146,484 - (37,015) 109,468 41,608
Total Capital Leases 900,214 476,635 937 (94,657) 382,914 103,252
Employee Leave Benefits:
Compensated absences 2,232,931 1,866,002 (1,653,130) 2,445,803 1,878,492
Other Post Employment Benefits:
LEOFF 1 8,447,831 1,268,760 (578,606) 9,137,985 -
Pensions:
Net Pension Liability 15,449,080 - (3,462,297) 11,986,783 -
Firemen's Pension Liability - 3,212,435 - 3,212,435 -
Public Works Trust Fund Loans:
PWTF 2008 0.50%7/1/2028 1,527,273 $80,383 964,593 - (80,383) 884,210 80,383
PWTF 2012 0.50%6/1/2041 3,284,857 $116,993 2,924,828 - (116,993) 2,807,835 116,993
Total Public Works Trust Fund Loans 4,812,130 3,889,421 - (197,376) 3,692,045 197,376
Premium Related to Debt 108,655 - (34,727) 73,928 -
Total Governmental 39,949,274$ 59,390,013$ 6,348,134$ (7,394,642)$ 58,343,504$ 3,590,680$
BUSINESS-TYPE DEBT
General Obligation Bonds
LTGO Refunding 2016 - Airport 1.64 -1.64%12/1/2019 700,284 $166,439 - $186,420 533,845 - (171,023) 362,822 176,402
Total General Obligation Bonds 700,284 533,845 - (171,023) 362,822 176,402
Revenue Bonds:
Utility sys bonds 2010 (1)3.00-6.40%12/1/2030 21,295,000 $575,000 - $1,720,000 18,895,000 - (1,030,000) 17,865,000 1,070,000
Utility sys bonds 2013 (1)0.38-4.00%12/1/2032 11,415,000 $335,000 - $785,000 9,650,000 - (480,000) 9,170,000 490,000
Total Revenue Bonds 32,710,000 28,545,000 - (1,510,000) 27,035,000 1,560,000
Employee Leave Benefits:
Compensated absences 646,235 441,538 (509,041) 578,732 444,493
Net Pension Liability 7,203,149 - (1,590,202) 5,612,947 -
Public Works Trust Fund & Drinking Water Loans:
PWTF 1999 1.00%7/1/2019 3,465,000 $182,368 547,105 - (182,368) 364,736 182,368
PWTF 2001 0.50%7/1/2021 4,290,405 $227,086 1,135,428 - (227,086) 908,343 227,086
PWTF 2002 1.00%7/1/2022 641,250 $26,114 156,687 - (26,114) 130,572 26,114
PWTF 2004 0.50%7/1/2024 2,049,036 $107,844 862,752 - (107,844) 754,908 107,844
PWTF 2006 0.50%7/1/2026 3,325,000 $180,418 1,804,180 - (180,418) 1,623,763 180,418
PWTF 2013 2.00%6/1/2032 3,325,000 $188,538 3,016,615 - (188,538) 2,828,076 188,538
DWSRF 2016 1.50%10/1/2026 1,353,400 $10,221 - 91,990 - 91,990 10,221
Total Public Works Trust Fund & Drinking Water Loans 18,449,091 7,522,767 91,990 (912,368) 6,702,388 922,589
Premium Related to Debt 1,205,284 - (78,585) 1,126,699 -
Total Proprietary 51,859,375$ 45,656,280$ 533,528$ (4,771,219)$ 41,418,588$ 3,103,487$
Total All Funds 91,808,649$ 105,046,293$ 6,881,662$ (12,165,861)$ 99,762,092$ 6,694,167$
(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.
CHANGES IN LONG-TERM LIABILITIES
City of Auburn: 2017 CAFR Notes to the Financial Statements
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Due to Other Governments
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.
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 2017 was 3.33. 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 reven ue
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 years. The City’s
estimated arbitrage rebate as of December 31, 2017 is $0 for its tax-exempt bond issues.
Interest Maturity Original Principal Balance Balance Due Within
Issue Name Rates Date Amount Installments 12/31/16 Additions Reductions 12/31/17 One Year
GOVERNMENTAL DEBT:
General Obligation Bonds:
SCORE Public Development Authority 3.00-6.62%1/1/2039 26,732,850 $593,650 - $1,601,150 23,612,700 - (694,400) 22,918,300 716,100
Total General Obligation Bonds
Due Other Governments 26,732,850$ 23,612,700$ -$ (694,400)$ 22,918,300$ 716,100$
CHANGES IN LONG-TERM LIABILITIES DUE TO OTHER GOVERNMENTS
Enterprise Governmental
Funds Funds 12/31/17
Liabilities payable from restricted assets:
Revenue bonds 2,922,900$ -$ 2,922,900$
Long-term bonds payable:
General obligation bonds 362,822 27,411,611 27,774,433
Capital lease - 382,914 382,914
Revenue bonds 24,112,100 - 24,112,100
Public Works Trust Fund loans 6,702,388 3,692,045 10,394,433
Due to Other Governments - 22,918,300 22,918,300
Employee leave benefits 578,732 2,445,803 3,024,535
Other Post Employment Benefits - 9,137,985 9,137,985
Net Pension Liability 5,612,947 11,986,783 17,599,730
Firemen's Pension Liability - 3,212,435 3,212,435
Premium 1,126,699 73,928 1,200,627
Total long-term debt 41,418,588$ 81,261,804$ 122,680,394$
LONG-TERM LIABILITIES RECONCILIATION
City of Auburn: 2017 CAFR Notes to the Financial Statements
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Note 10 – Pension Plans
The following table represents the aggregate pension amounts for all plans subject to the requirements of GASB Statement
68, Accounting and Financial Reporting for Pensions for the year 2017
Aggregate Pension Amounts - All Plans
Pension liabilities $ (17,599,730)
Pension assets $ 6,702,047
Deferred outflows of resources $ 3,143,002
Deferred inflows of resources $ (4,516,982)
Pension expense/expenditures $ 1,592,900
*Pension Assets GASB 68 equals total Net Position Statement
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 perc ent 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 retiri ng
from active status prior to the age of 65 may receive actuarially reduced benefits. Retirement benefits are actuarially redu ced
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: 2017 CAFR Notes to the Financial Statements
82
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 2017 were as follows:
PERS Plan 1
Actual Contribution Rates: Employer Employee*
January – June 2017:
PERS Plan 1 6.23% 6.00%
PERS Plan 1 UAAL 4.77%
Administrative Fee 0.18%
Total 11.18% 6.00%
July – December 2017:
PERS Plan 1 7.49% 6.00%
PERS Plan 1 UAAL 5.03%
Administrative Fee 0.18%
Total 12.70% 6.00%
* For employees participating in JBM, the contribution rate was 12.26%.
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 year s 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 th e 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 th e defined
contribution benefits. PERS Plan 3 members are immediately vested in the defined contribution portion of their plan.
City of Auburn: 2017 CAFR Notes to the Financial Statements
83
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 2017 were as follows:
PERS Plan 2/3
Actual Contribution Rates: Employer 2/3 Employee 2*
January – June 2017:
PERS Plan 2/3 6.23% 6.12%
PERS Plan 1 UAAL 4.77%
Administrative Fee 0.18%
Employee PERS Plan 3 varies
Total 11.18% 6.12%
July – December 2017:
PERS Plan 2/3 7.49% 7.38%
PERS Plan 1 UAAL 5.03%
Administrative Fee 0.18%
Employee PERS Plan 3 varies
Total 12.70% 7.38%
* For employees participating in JBM, the contribution rate was 15.30% for January – June 2017 and 18.45% for July –
December 2017.
The City’s actual PERS plan contributions were $1,216,069 to PERS Plan 1 and $1,714,887 to PERS Plan 2/3 for the year ended
December 31, 2017.
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 pl ans.
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 hi ghest 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. Othe r
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.
City of Auburn: 2017 CAFR Notes to the Financial Statements
84
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 201 7. 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 serv ice 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 b enefit. 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 201 7 were as follows:
LEOFF Plan 2
Actual Contribution Rates: Employer Employee
January – June 2017:
State and local governments 5.05% 8.41%
Administrative Fee 0.18%
Total 5.23% 8.41%
Ports and Universities 8.41% 8.41%
Administrative Fee 0.18%
Total 8.59% 8.41%
July – December 2017
State and local governments 5.25% 8.75%
Administrative Fee 0.18%
Total 5.43% 8.75%
Ports and Universities 8.75% 8.75%
Administrative Fee 0.18%
Total 8.93% 8.75%
The City’s actual contributions to the plan were $656,346 for the year ended December 31, 2017.
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, 201 7, the state contributed $62,155,262
to LEOFF Plan 2. The amount recognized by the City as its proportionate share of this amount is $380,132.
Actuarial Assumptions
The total pension liability (TPL) for each of the DRS plans was determined using the most recent actuarial valuation
completed in 2017 with a valuation date of June 30, 2016. 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 and the 2015 Economic Experience Study.
City of Auburn: 2017 CAFR Notes to the Financial Statements
85
Additional assumptions for subsequent events and law changes are current as of the 201 6 actuarial valuation report. The
TPL was calculated as of the valuation date and rolled forward to the measurement date of June 30, 201 7. Plan liabilities
were rolled forward from June 30, 2016, to June 30, 2017 , reflecting each plan’s normal cost (using the entry-age cost
method), assumed interest and actual benefit payments.
Inflation: 3.0% 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 reco gnized 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 changes in methods and assumptions since the last valuation.
For all plans except LEOFF Plan 1, how terminated and vested member benefits are valued was corrected .
How the basic minimum COLA in PERS Plan 1 is valued for legal order payees was improved.
For all plans, the average expected remaining service lives calculation was revised.
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, 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 rat es (including PERS 2/3, 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. In selecting this assumption, the Office of the State Actuary (OSA) reviewed the historical experience data,
considered the historical conditions that produced past annual investment returns, and considered capital market
assumptions and simulated expected investment returns provided by the Washington State Investment Board (WSIB). The
WSIB uses the capital market assumptions and their target asset allocation to simulate future investment returns over
various time horizons.
City of Auburn: 2017 CAFR Notes to the Financial Statements
86
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, 2017, 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% 4.90%
Real Estate 15% 5.80%
Global Equity 37% 6.30%
Private Equity 23% 9.30%
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 $ 11,133,883 $ 9,139,685 $ 7,412,282
PERS 2/3 22,792,245 8,460,044 (3,283,068)
LEOFF 1 (1,153,005) (1,554,407) (1,899,120)
LEOFF 2 $ 1,113,941 $ (5,147,640) $ (10,249,314)
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.
Pension Liabilities (Assets), Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources
Related to Pensions
At June 30, 2017, the City reported a total pension liability of $10,897,682 for its proportionate share of the net pension
liabilities as follows:
Liability (Asset)
PERS 1 $ 9,139,685
PERS 2/3 8,460,044
LEOFF 1 (1,554,407)
LEOFF 2 $ (5,147,640)
City of Auburn: 2017 CAFR Notes to the Financial Statements
87
The amount of the asset reported above for LEOFF Plans 1 and 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 asset, the related State support,
and the total portion of the net pension asset that was associated with the City were as follows:
LEOFF 1 Asset LEOFF 2 Asset
Employer’s proportionate share
$ (1,554,407)
$ (5,147,640)
State’s proportionate share of
the net pension asset associated
with the employer
(10,513,971)
(3,339,178)
TOTAL $ (12,068,378) $(8,486,817)
At June 30, the City’s proportionate share of the collective net pension liabilities was as follows:
Proportionate
Share 6/30/16
Proportionate Share
6/30/17
Change in
Proportion
PERS 1 0.194185% 0.192614% (0.001571)%
PERS 2/3 0.242776% 0.243488% 0.000712 %
LEOFF 1 0.101574% 0.102451% 0.000877%
LEOFF 2 0.359661% 0.370954% 0.011293 %
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 amounts 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 201 7. Historical data was obtained from a 2011 study by the Office
of the State Actuary (OSA). In fiscal year 2017, 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 2017, the state of Washington contributed 39.35 percent of LEOFF 2 employer contributions pursuant to RCW
41.26.725 and all other employers contributed the remaining 60.65 percent of employer contributions.
The collective net pension liability (asset) was measured as of June 30, 201 7, and the actuarial valuation date on which the
total pension liability (asset) is based was as of June 30, 2016, with update procedures used to roll forward the total pension
liability to the measurement date.
Pension Expense
For the year ended December 31, 2017, the City recognized pension expense as follows:
Pension Expense
PERS 1 $ 475,481
PERS 2/3 1,201,215
LEOFF 1 (257,088)
LEOFF 2 173,292
TOTAL $ 1,592,900
City of Auburn: 2017 CAFR Notes to the Financial Statements
88
Deferred Outflows of Resources and Deferred Inflows of Resources
At December 31, 2017, 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
341,067
Changes of assumptions
Changes in proportion and differences between
contributions and proportionate share of contributions
Contributions subsequent to the measurement date 625,456
TOTAL $ 625,456 $ 341,067
PERS 2/3 Deferred Outflows of
Resources
Deferred Inflows of
Resources
Differences between expected and actual experience $ 857,202 $ 278,236
Net difference between projected and actual investment
earnings on pension plan investments
2,255,244
Changes of assumptions 89,862
Changes in proportion and differences between
contributions and proportionate share of contributions
48,701
10,996
Contributions subsequent to the measurement date 934,975
TOTAL $ 1,930,740 $ 2,544,476
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
144,441
Changes of assumptions
Changes in proportion and differences between contributions
and proportionate share of contributions
Contributions subsequent to the measurement date
TOTAL $ $ 144,441
LEOFF 2 Deferred Outflows of
Resources
Deferred Inflows of
Resources
Differences between expected and actual experience $ 226,249 $ 195,207
Net difference between projected and actual investment
earnings on pension plan investments
1,155,681
Changes of assumptions 6,199
Changes in proportion and differences between
contributions and proportionate share of contributions
136,110
Contributions subsequent to the measurement date 354,359
TOTAL $ 586,806 $ 1,486,999
City of Auburn: 2017 CAFR Notes to the Financial Statements
89
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, 2018. Other amounts
reported as deferred outflows and deferred inflows of resources related to pensions will be recognized in pension expense
as follows:
Year ended PERS 1 PERS 2/3 LEOFF 1 LEOFF 2
December 31
2018 $ (230,540) $ (892,068) $ (90,649) $ (556,277)
2019 72,785 251,250 24,448 94,881
2020 (16,900) (189,859) (9,763) (104,678)
2021 (166,413) (902,906) (68,477) (522,542)
2022 - 80,379 - (29,631)
Thereafter $ - $ 104,493 $ - $ (136,304)
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 41.1 6 and 41.18. This plan provides 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 firefight ers
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. Membership of the Firemen’s Pension Plan
consisted of 13 eligible inactive employees or their beneficiaries, of which 11 received city paid benefits. There are no active
employees in this plan.
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 (which is not considered a special funding situation), interest earnings, member contributions
made prior to the inception of LEOFF, and City contributions required to meet projected future pension obligations. In 2017,
$78,078 was received from the state from taxes on fire insurance premiums, and $22,111 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 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 there are no assets accumulated in a
qualifying trust and 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 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. 73 – Accounting
and Financial Reporting for Pensions and Related Assets That Are Not within the Scope of GASB Statement 68, and Amendments
to Certain Provisions of GASB Statements 67 and 68.
City of Auburn: 2017 CAFR Notes to the Financial Statements
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The following table represents the plan aggregate pension amounts for 2017:
Aggregate Pension Amounts – Fire Relief and Pension Plan
Pension liabilities $ (3,212,435)
Deferred outflows of resources $ 0
Deferred inflows of resources $ 0
Pension expense/expenditures $ 116,491
Service Retirement Benefit
The amount of a members benefit is based upon the rank of the firefighter at the time of retirement and amounts to 50% of
salary plus an additional 2% for each year of service in excess of 25 years, to a maximum be nefit of 60% of salary. An annual
post-retirement increase is determined based upon 2 factors:
escalation by salary in proportion to the current salary of rank from which the firefighter retired (RCW 41.18.040),
and
increase proportionate to the annual increase in the Seattle-area CPI and regardless of the increase (or decrease)
in the CPI, the benefits are increased at least 2% each year. (RCW 41.18.104)
Assumptions and Other Inputs to the Total Pension Liability
GASB Statement 73 requires a schedule of changes in Total Pension Liability from year to year. Both the December 31, 2016
and the December 31, 2017 amounts are based on the January 1, 2017 actuarial valuation (the valuation date) and then
projected forward to the measurement date. The measurement date is December 31, 2017 which is the date as of which the
total pension liability is determined.
The discount rate and other key actuarial assumptions utilized are noted below:
Fire Relief and Pension Plan December 31, 2016 December 31, 2017
Discount Rate – municipal bond rate (average rating
AA/Aa or higher)
3.75%
3.50%
Valuation Date January 1, 2017 January 1, 2017
Measurement Date December 31, 2016 December 31, 2017
Inflation 2.25% 2.25%
Salary Increases Including Inflation 3.25% 3.25%
Mortality RP-2000 Mortality
Table (combined
healthy) with
generational
projection using 100%
of Projection Scale
BB
RP-2000 Mortality
Table (combined
healthy) with
generational
projection using
100% of Projection
Scale BB
Actuarial Cost Method Entry Age Normal Entry Age Normal
City of Auburn: 2017 CAFR Notes to the Financial Statements
91
Total Pension Liability
The following table represents the changes in the total pension liability for 2017:
Fire Relief and Pension Plan Increase (Decrease)
Total Pension Liability
Balances as of December 31, 2016 $ 3,218,004
Changes for the year:
Service cost 0
Interest on total pension liability 116,957
Effect of plan changes 0
Effect of economic/demographic gains or losses 0
Effect of assumptions, changes or inputs 77,612
Benefit payments * (200,138)
Balances as of December 31, 2017 $ 3,212,435
* Benefit payments are estimated based on expected payouts.
Sensitivity Analysis
The following table presents the total pension liability of the City, calculated using the discount rate of 3.50%, as well as what
the City’s total pension liability would be if it were calculated using a discount rate that is 1 percentage point lower (2.50%)
or 1 percentage point higher (4.50%) than the current rate.
1%
Decrease
2.50%
Current
Discount Rate
3.50%
1%
Increase
4.50%
$3,556,531
$3,212,435
$2,919,603
Pension Expense
The amount of pension expense recognized by the City for the reporting period is as follows:
Fire Relief and Pension Plan January 1, 2016 to
December 31, 2016
January 1, 2017 to
December 31, 2017
Service Cost N/A $ 0
Interest on Total Pension Liability N/A 116,957
Effect of Plan Changes N/A 0
Contributions From State Fire Insurance Premium Tax N/A (78,078)
Recognition of Deferred Inflows/Outflows of Resources:
Recognition of Economic/Demographic Gains/Losses N/A 0
Recognition of Assumption Changes or Inputs N/A 77,612
Pension Expense N/A $ 116,491
City of Auburn: 2017 CAFR Notes to the Financial Statements
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Deferred Outflows/Inflows of Resources
As of December 31, 2017, the deferred outflows and inflows of resources are as follows:
Fire Relief and Pension Plan Deferred Outflows
of Resources
Deferred Inflows of
Resources
Differences between expected and actual experience $ 0 $ 0
Changes of assumptions 0 0
Contributions subsequent to the measurement date 0 0
TOTAL $ 0 $ 0
Amounts currently reported as deferred outflows of resources and deferred inflows of resources related to pensions will
be recognized in pension expense as follows:
Year ended December 31:
2018 $0
2019 0
2020 0
2021 0
2022 0
Thereafter 0
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 lon g 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, 2017, there was 1 active member and 51 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.
City of Auburn: 2017 CAFR Notes to the Financial Statements
93
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.
The net OPEB obligation of $9,137,985 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 2017,
2016 and 2015 are as follows:
Funded Status and Funding Progress
As of January 1, 2017, the most recent actuarial valuation date, the plan was 0% funded. The accrued liability for benefits was
$17.6 million, and the actuarial value of assets was $0, resulting in a UAAL of $17.6 million. The required schedule of funding
progress immediately following the notes to the financial statements presents multi -year trend information about whether
the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liability for benefits.
Actuarial valuations involve estimates of the value of reported amounts and assumptions about the probability of occurrence
of events far into the future. Examples include assumptions about future employment, mortality, and the healthcare cost
trend. Amounts determined regarding the funded status of the plan and the annual required contributions of the employer
are subject to continual revision as actual results are compared with past expectations and new estimates are made about
the future.
Actuarial Methods and Assumptions
Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by the
employer and the plan members) and include the types of benefits provided at the time of each valuation. The actuarial
Fiscal Year Ending
Annual Required Contribution (ARC)12/31/2015 12/31/2016 12/31/2017
1. Annual Normal Costs at beginning of year 45,656$ 45,656$ -$
2. Amortization of UAAL at beginning of year 2,168,028 2,168,028 1,756,269
3. Interest to end of year 71,945 71,945 61,469
4. ARC at end of year 2,285,629$ 2,285,629$ 1,817,738$
5. Interest on Net OPEB Obligation 201,873 235,548 295,674
6. Adjustment to ARC 541,686 670,637 844,652
7. Annual OPEB Cost 1,945,816$ 1,850,540$ 1,268,760$
8. Employer Contributions 909,657 650,332 578,606
9. Change in Net OPEB Obligation 1,036,159 1,200,208 690,154
10. Net OPEB Obligation at beginning of year 6,211,464 7,247,623 8,447,831
11. Net OPEB Obligation at end of year 7,247,623$ 8,447,831$ 9,137,985$
Contributions as a
Annual Percentage of Net OPEB
Fiscal Year Ending OPEB Cost Annual OPEB Cost Obligation
December 31, 2017 1,268,760$ 46%9,137,985$
December 31, 2016 1,850,540 35%8,447,831
December 31, 2015 1,945,816 47%7,247,623
City of Auburn: 2017 CAFR Notes to the Financial Statements
94
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, 2017 actuarial valuation, the entry age normal actuarial cost method was used. The actuarial assumptions
used included a 3.5% 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 7.9% for pre-65 retirees and 7.4% 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 4.5%.
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, 2017 was 12 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.
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, 2017, 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, dental and vision insurance through the following carriers: Kaiser Foundation Health Plan of Washington,
Kaiser Foundation Health Plan of Washington Options, Inc., Regence BlueShield, Asuris Northwest Health, Delta Dental of
Washington, and 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 paymen t of all
covered claims. In 2017, the AWC Trust HCP purchased stop loss insurance for Regence/Asuris plans at an Individual Stop Loss
(ISL) of $1.5 million through Life Map, and Kaiser ISL at $1 million with Companion Life through ASG Risk Management . 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.
City of Auburn: 2017 CAFR Notes to the Financial Statements
95
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.
NOTE 13 – CONSTRUCTION COMMITMENTS
At December 31, 2017, the City had the following contractual obligations on construction projects:
SCHEDULE OF OUTSTANDING CONSTRUCTION OBLIGATIONS
As of December 31, 2017
Amount Outstanding
Traffic projects 1,104,773$
Street projects 2,914,429
Utilities projects 814,876
Other projects 69,953
Total commitments 4,904,030$
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 plant ing 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 2017, of the $16,609 net appreciation on investments, all was available for expenditures. Amounts that are available for
expenditure are reflected as assigned fund balance.
City of Auburn: 2017 CAFR Notes to the Financial Statements
96
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.
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 Co unty 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 budge t, less revenue from
subscribing agencies and all other sources.
The 2017 cost distribution for the five participating cities is as follows:
* 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
Dispatchable Percent of
Calls Total *
Kent 115,303 26.55%
Renton 87,220 20.09%
Auburn 100,554 23.16%
Tukwila 36,635 8.44%
Federal Way 94,522 21.76%
Total 434,233 100.00%
City of Auburn: 2017 CAFR Notes to the Financial Statements
97
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.
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 participati ng 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 Comm unications 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:
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, und er 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 in terlocal
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 an d
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.
Item Kent Renton Auburn Tukwila Federal Way Total
Equity Dec 31, 2016 6,314,604$ 4,531,544$ 4,504,828$ $2,391,872 3,484,567$ 21,227,415$
Current year change 900,497 681,177 785,309 286,110 738,205 3,391,298
Equity Dec 31, 2017 7,215,101$ 5,212,721$ 5,290,137$ 2,677,982$ 4,222,772$ 24,618,713$
% of equity 29.31%21.17%21.49%10.88%17.15%
% of 2017 distribution 26.55%20.09%23.16%8.44%21.77%
City of Auburn: 2017 CAFR Notes to the Financial Statements
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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 Forma tion Interlocal Agreement.
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 develo pment authority
chartered by the City of Renton pursuant to RCW 35.21.730 through 35.21.755. The SCORE PDA issued $86 million in special
obligation bonds in 2009 (the “Bonds”) to construct, develop, acquire and equip the SCORE Facility. Pursuant to the
Formation Interlocal Agreement and the ordinances of each city, each Owner City (which includes the Cities of Auburn,
Burien, Federal Way, Renton, SeaTac, and Tukwila) is obligated to budget for and pay its share, and only its share, of the
principal of and interest on the Bonds as the same become due and payable. Each Owner City’s obligation to pay its portion
is an irrevocable, unconditional full faith and credit obligation of such Owner City, payable from property taxes levied with in
the constitutional and statutory authority provided without a vote of the electors of the Owner City on all of the taxable
property within the Owner City and other sources of revenues available therefor. The following is a summary of the debt
service requirements for the Bonds:
BABs Auburn Burien Federal Way Renton SeaTac Tukwila
Year Principal Interest Subsidy Total 31%4%18%36%3%8%
2018 2,240,000$ 4,715,979$ (1,512,496)$ 5,443,483$ 1,687,480$ 217,739$ 979,827$ 1,959,654$ 163,304$ 435,479$
2019 2,310,000 4,602,229 (1,478,317) 5,433,912 1,684,513 217,356 978,104 1,956,208 163,017 434,713
2020 2,385,000 4,484,854 (1,440,560) 5,429,294 1,683,081 217,172 977,273 1,954,546 162,879 434,344
2021 2,465,000 4,363,604 (1,401,577) 5,427,027 1,682,378 217,081 976,865 1,953,730 162,811 434,162
2022 2,590,000 4,233,250 (1,500,618) 5,322,632 1,650,016 212,905 958,074 1,916,148 159,679 425,811
2023-2027 14,485,000 18,727,798 (6,710,481) 26,502,317 8,215,718 1,060,093 4,770,417 9,540,834 795,070 2,120,185
2028-2032 17,725,000 13,590,870 (4,959,695) 26,356,175 8,170,414 1,054,247 4,744,112 9,488,223 790,685 2,108,494
2033-2037 21,855,000 7,082,263 (2,731,829) 26,205,434 8,123,685 1,048,217 4,716,978 9,433,956 786,163 2,096,435
2038-2039 10,115,000 676,321 (353,824) 10,437,497 3,235,624 417,500 1,878,749 3,757,499 313,125 835,000
Totals 76,170,000$ 62,477,168$ (22,089,397)$ 116,557,771$ 36,132,909$ 4,662,310$ 20,980,399$ 41,960,798$ 3,496,733$ 9,324,623$
Summary of Debt Service Requirements
Debt Service Schedule Debt Service Allocation to Owner Cities
City of Auburn: 2017 CAFR Notes to the Financial Statements
99
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, 2017 related to SCORE:
Member City Percent of Equity 2016 Equity Balance 2017 Apportionment 2017 Equity Balance
Auburn 31.00%3,115,334$ 32,413$ 3,147,747$
Burien 3.00%324,602 22,263 346,865$
Des Moines 2.00%166,583 (3,248) 163,335$
Federal Way 23.00%2,292,265 61,482 2,353,747$
Renton 30.00%2,941,503 74,665 3,016,168$
SeaTac 4.00%434,029 22,947 456,976$
Tukwila 7.00%703,323 16,099 719,422$
Grand Totals 100.00%9,977,639$ 226,621$ 10,204,260$
South Correctional Entity (SCORE)
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:
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.
Balance Additions Reductions Balance
12/31/2016 12/31/2017
Valley Communication Public Dev Auth -$ -$ -$ -$
SCORE Public Development Authority 23,612,700 - (694,400) 22,918,300
Due to Other Governments 23,612,700 - (694,400) 22,918,300
Valley Communications Center 4,504,827 785,310 - 5,290,137
South Correctional Entity (SCORE)3,115,334 32,413 - 3,147,747
Equity Share 7,620,161 817,723 - 8,437,884
Total Investment in Joint Ventures 31,356,184$
Investment in Joint Ventures
City of Auburn: 2017 CAFR Notes to the Financial Statements
100
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 2017 Auburn paid $1,808, 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 2017 were $123,889. Medical premiums and benefit payments made under the Fire Relief and Pension Plan for 2017 were
$67,052.
NOTE 17 – CONTINGENCIES AND LITIGATIONS
As of December 31, 2017, 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, injur ies
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 A ct), 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 s ervices. WCIA has a total of 161
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,
errors or omissions, stop gap, employment practices and employee benefits liability. Limits are $4 million per occurrence in
the self-insured layer, and $21 million in limits above the self-insured layer is provided by reinsurance. Total limits are $25
million per occurrence subject to aggregate sublimits. 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 coverage are
purchased on a group basis. Various deductibles apply by type of coverage. Property coverage is self-funded from the
members’ deductible to $750,000, for all perils other than flood and earthquake, and insured above that to $300 million per
occurrence subject to aggregates and sublimits. Automobile physical damage cov erage is self-funded from the members’
deductible to $250,000 and insured above that to $100 million per occurrence subject to aggregates and sublimits.
In-house services include risk management consultation, loss control field services, and claims and litigation administration.
WCIA contracts for certain claims investigations, consultants for personnel and land use issues, insurance brokerage,
actuarial, and lobbyist services.
City of Auburn: 2017 CAFR Notes to the Financial Statements
101
WCIA is fully funded by its members, who make annual assessments on a prospe ctively rated basis, as determined by an
outside, independent actuary. The assessment covers loss, loss adjustment, reinsurance 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, 2017 fund equity was $1,595,592.
NOTE 19 – TAX ABATEMENTS
The city offers a multifamily property tax exemption within the downtown core to encourage construction of new
multifamily housing, and that the provisions of additional housing opportunities in the downtown core will assist in achieving
the goals of the city’s comprehensive plan. Under Chapter 84.14 RCW, the city provides the opportunity for a limited, eight -
year exemptions from ad valorem property taxation for a qualified new multifamily and rehabilitated multifamily housing
constructed in the downtown core and 12-year exemptions from ad valorem property taxation for qualified new affordable
multifamily and rehabilitated multifamily housing contracted in the downtown core. Abatements are obtained through
application by the property owner, including proof of improvements that have been made, and equal 100 percent of the
additional property tax resulting from the increase in assessed value as a result of t he improvements. If application is
approved and all requirements meet, exemption begins January 1st, of the year immediately following the calendar year of
issuance of the final certificate of tax emption. If at any time it is determined the property no longer complies with the
terms of the contract or the requirements, or the use of the property for any reason no longer qualifies for the tax
exemption, the tax exemption shall be cancelled and additional taxes, interest and penalties imposed.
The city has the following tax abatement agreement(s) in place as of December 31, 2017.
1) Plan A Development LLC, project name Trek Apartments; a four story building of 126 apartment units with outdoor plaza
and ground parking and retail space. The final certificate of tax exemption was issued December 3, 2015, with the eight-year
ad valorem property tax exemption to start with tax year 2016. The amount of the property tax abated during the fiscal year
2017 was $39,995.
2) Merrill Gardens at Auburn LLC, project name Merrill Gardens; a senior living community with 129 apartment units (114
assisted living units and 15 memory care units). The building is four stories above grade with one level of below grade park ing.
The final certificate of tax exemption was issued September 14, 2017, with the eight-year ad valorem property tax exemption
to start with tax year 2018.
City of Auburn: 2017 CAFR Notes to the Financial Statements
102
NOTE 20 – CHANGE IN ACCOUNTING PRINCIPLE
The City of Auburn implemented the second year requirement of Governmental Accounting Standards Board (GASB)
Statement 73, Accounting and Financial Reporting for Pensions and Related Assets that are not within the Scope of GASB 68,
and Amendments to Certain Provisions of GASB 67 and 68 . The Fire Relief and Pension Fund is reported under GASB 73 for
financial reporting (recognize a pension liability), note disclosure and supplementary information.
City of Auburn: 2017 CAFR Required Supplemental Information
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REQUIRED SUPPLEMENTARY INFORMATION
Schedule of Proportionate Share of the Net Pension Liability
As of June 30, 2017
Last 10 Fiscal Years*
PERS 1 2017 2016 2015
Employer's proportion of the net pension liability (asset)0.192614%0.194185%0.192878%
Employer's proportionate share of the net pension liability (asset)9,139,685$ 10,428,649$ 10,089,313$
Covered payroll 181,521$ 212,906$ 328,015$
Employer's proportionate share of the net pension liability as a percentage
of its covered payroll 5035.06%4898.24%3075.87%
Plan fiduciary net position as a percentage of the total pension liability 61.24%57.03%59.10%
PERS 2/3 2017 2016 2015
Employer's proportion of the net pension liability (asset)0.243488%0.247760%0.241739%
Employer's proportionate share of the net pension liability (asset)8,460,044$ 12,223,580$ 8,637,472$
Covered payroll 23,904,107$ 22,734,107$ 21,460,504$
Employer's proportionate share of the net pension liability as a percentage
of its covered payroll 35.39%53.77%40.25%
Plan fiduciary net position as a percentage of the total pension liability 90.97%85.82%89.20%
LEOFF 1 2017 2016 2015
Employer's proportion of the net pension liability (asset)0.102451%0.101574%0.103718%
Employer's proportionate share of the net pension liability (asset)(1,554,407)$ (1,046,503)$ (1,250,031)$
Covered payroll -$ -$ -$
Employer's proportionate share of the net pension liability as a percentage
of its covered payroll 0.00%0.00%0.00%
Plan fiduciary net position as a percentage of the total pension liability 136.00%123.74%127.36%
LEOFF 2 2017 2016 2015
Employer's proportion of the net pension liability (asset)0.370954%0.359661%0.354511%
Employer's proportionate share of the net pension liability (asset)(5,147,640)$ (2,091,896)$ (2,193,486)$
State's proportionate share of the net pension liability (asset) associated
with the employer (3,339,178)$ (1,363,764)$ (1,450,178)$
Total (8,486,818)$ (3,455,660)$ (3,643,664)$
Covered payroll 11,623,292$ 10,953,667$ 10,336,409$
Employer's proportionate share of the net pension liability as a percentage
of its covered payroll -44.29%-19.10%-21.22%
Plan fiduciary net position as a percentage of the total pension liability 113.40%106.04%111.67%
City of Auburn: 2017 CAFR Required Supplemental Information
104
REQUIRED SUPPLEMENTARY INFORMATION
Schedule of Proportionate Share of the Net Pension Liability
As of June 30, 2017
Last 10 Fiscal Years*
* The City implemented GASB Statement No. 68 in fiscal year 2015. Information is not available for prior years. The schedule
will be built prospectively until it contains ten years of data.
Notes to Schedule:
Significant methods and assumptions used in calculating the actuarial determined contribution are presented in Note 10.
Contribution and covered payroll on this schedule is based on the plan fiscal year – July 1 – June 30.
The LEOFF 1 plan is closed and has no further covered payroll.
City of Auburn: 2017 CAFR Required Supplemental Information
105
Schedule of Employer Contributions
As of December 31 2017
Last 10 Fiscal Years*
* The City implemented GASB Statement No. 68 in fiscal year 2015. Information is not available for prior years. The schedule
will be built prospectively until it contains ten years of data.
Note to Schedule:
Significant methods and assumptions used in calculating the actuarial determined contribution are presented in Note 10.
PERS 1 2017 2016 2015
Statutorily or contractually required contributions 22,545$ 20,088$ 30,642$
Contributions in relation to the statutorily or contractually required contributions (22,545)$ (20,088)$ (30,642)$
Contribution deficiency (excess)-$ -$ -$
Covered payroll 188,486$ 179,680$ 306,408$
Contributions as a percentage of covered payroll 11.96%11.18%10.00%
PERS 2/3 2017 2016 2015
Statutorily or contractually required contributions 2,908,411$ 2,608,360$ 2,258,109$
Contributions in relation to the statutorily or contractually required contributions (2,908,411)$ (2,608,360)$ (2,258,109)$
Contribution deficiency (excess)-$ -$ -$
Covered payroll 24,350,435$ 23,330,702$ 22,130,501$
Contributions as a percentage of covered payroll 11.94%11.18%10.20%
LEOFF 2 2017 2016 2015
Statutorily or contractually required contributions 639,662$ 594,665$ 551,812$
Contributions in relation to the statutorily or contractually required contributions (639,662)$ (594,665)$ (551,812)$
Contribution deficiency (excess)-$ -$ -$
Covered payroll 11,992,821$ 11,370,216$ 10,553,437$
Contributions as a percentage of covered payroll 5.33%5.23%5.23%
City of Auburn: 2017 CAFR Required Supplemental Information
106
REQUIRED SUPPLEMENTARY INFORMATION
Schedule of Changes in Total Pension Liability & Related Ratio’s
Fire Relief and Pension Plan
Last 10 Fiscal Years *
* The City implemented GASB Statement No. 73 in fiscal year 2017. Information is not available for prior years. The schedule
will be built prospectively until it contains ten years of data.
Notes to Schedule:
No assets have been accumulated in a trust that meets the criteria of a qualified plan.
The effect of assumption changes or inputs is the result of a change in the discount rate from 3.75% as of December 31, 2016
to 3.50% as of December 31, 2017.
Significant methods and assumptions used in calculating the actuarial determined contribution are presented in Note 10.
2017 2016 2015 2014 2013 2012 2011 2010 2009 2008
Total Pension Liability - Beginning 3,218,004$ N/A N/A N/A N/A N/A N/A N/A N/A N/A
Service Cost - N/A N/A N/A N/A N/A N/A N/A N/A N/A
Interest on Total Pension Liability 116,957 N/A N/A N/A N/A N/A N/A N/A N/A N/A
Effect of Plan Changes - N/A N/A N/A N/A N/A N/A N/A N/A N/A
Effect of Economic/Demographic Gains (Losses)- N/A N/A N/A N/A N/A N/A N/A N/A N/A
Effect of Assumption Changes or Inputs 77,612 N/A N/A N/A N/A N/A N/A N/A N/A N/A
Benefit Payments (200,138) N/A N/A N/A N/A N/A N/A N/A N/A N/A
Net Change in Total Pension Liability (5,569) N/A N/A N/A N/A N/A N/A N/A N/A N/A
Total Pension Liability - Ending 3,212,435$ N/A N/A N/A N/A N/A N/A N/A N/A N/A
Covered Payroll - N/A N/A N/A N/A N/A N/A N/A N/A N/A
Total Pension Liability as a % of Covered Payroll N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
Fiscal Year Ending December 31
City of Auburn: 2017 CAFR Required Supplemental Information
107
REQUIRED SUPPLEMENTARY INFORMATION
Retiree Medical and Long-Term Care Benefits for Firemen’s Relief and Pension Plan and LEOFF 1 Employees
January 1, 2017
Annual Required
Year Ending Employer Contribution Percentage of
12/31 Contributions (ARC) ARC Contributed
2012 1,104,259 2,197,396 50%
2013
1,24,809 2,197,396 51%
2014
793,286 2,285,629 35%
2015
909,657 2,285,629 40%
2016 350,332 2,285,629 28%
2017 578,606 1,817,738 32%
GASB STATEMENT No. 43 SCHEDULE OF EMPLOYER CONTRIBUTIONS
Unfunded
Actuarial UAAL as a
Actuarial Actuarial Accrued Percentage
Actuarial Value Accrued Liabilities Funded Covered of Covered
Valuation Date of Assets 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
January 1, 2017 - 17,565 17,565 0% N/A N/A
GASB STATEMENTS No. 43 and No. 45
(rounded to thousands)
SCHEDULE OF FUNDING PROGRESS
City of Auburn: 2017 CAFR Required Supplemental Information
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City of Auburn: 2017 CAFR Fund Financial Statements and Schedules
109
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: 2017 CAFR Fund Financial Statements and Schedules
110
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 17,676,790$ 21,101$ 1,451,550$ 1,811,509$ 20,960,950$
Receivables:
Customer Accounts - - 3,793 - 3,793
Other Receivables 345,829 - - - 345,829
Special Assessments - 7,283 - - 7,283
Due From Other Governmental Units 180,500 - - - 180,500
Total Assets 18,203,119 28,384 1,455,343 1,811,509 21,498,355
LIABILITIES, DEFERRED INFLOWS AND FUND BALANCES:
Liabilities:
Current Payables 898,895 - 62,345 - 961,240
Interfund Payable (Note 5)50,000 - - - 50,000
Other Liabilities Payable 36,954 - - - 36,954
Total Liabilities 985,849 - 62,345 - 1,048,194
Deferred Inflow of Resources:
Unavailable Revenue-Special Assessments - 7,283 - - 7,283
Total Deferred Inflow of Resources - 7,283 - - 7,283
Fund Balances:
Nonspendable - - - 1,717,134 1,717,134
Restricted 13,730,730 9,686 1,018,032 - 14,758,448
Committed 3,223,108 - - - 3,223,108
Assigned 263,432 11,415 374,966 94,375 744,188
Total Fund Balances 17,217,270 21,101 1,392,998 1,811,509 20,442,878
Total Liabilities, Deferred Inflows and Fund
Balances 18,203,119$ 28,384$ 1,455,343$ 1,811,509$ 21,498,355$
December 31, 2017
City of Auburn, Washington
COMBINING BALANCE SHEET
NON-MAJOR GOVERNMENT FUNDS
City of Auburn: 2017 CAFR Fund Financial Statements and Schedules
111
Total Total Total Total Total
Nonmajor Nonmajor Nonmajor Nonmajor Nonmajor
Special Revenue Debt Service Capital Projects Permanent Governmental
REVENUES:
Taxes:
Property -$ -$ 138,510$ -$ 138,510$
Retail Sales & Use 2,632,107 259,859 - - 2,891,966
Interfund Utility 648,609 - - - 648,609
Utility 1,458,542 - - - 1,458,542
Excise 124,486 - - - 124,486
Other 42,535 - - - 42,535
Intergovernmental 2,232,220 483,773 75,000 - 2,790,993
Charges for Services 2,640,770 - 9,395 51,091 2,701,256
Special Assessments - 3,835 - - 3,835
Investment Earnings 177,486 1,032 14,853 16,609 209,980
Miscellaneous 107,912 1,044 45,030 - 153,986
Total Revenues 10,064,667 749,543 282,788 67,700 11,164,698
EXPENDITURES:
Current:
Security of Persons & Property 620,086 - - - 620,086
Transportation 7,353,647 - - - 7,353,647
Economic Environment 762,139 - - - 762,139
Debt Service:
Principal - 1,380,108 - - 1,380,108
Interest - 1,557,864 - - 1,557,864
Capital Outlay - - 1,217,304 - 1,217,304
Total Expenditures 8,735,872 2,937,972 1,217,304 - 12,891,148
Excess (Deficiency) of Revenues
Over (Under) Expenditures 1,328,795 (2,188,429) (934,516) 67,700 (1,726,450)
OTHER FINANCING SOURCES (USES):
Transfers In (Note 5)344,915 2,197,585 954,124 - 3,496,624
Transfers Out (Note 5)(2,032,099) - - - (2,032,099)
Total Other Financing Sources (Uses)(1,687,184) 2,197,585 954,124 - 1,464,525
Net Change in Fund Balances (358,389) 9,156 19,608 67,700 (261,925)
Fund Balances - Beginning 17,575,659 11,945 1,373,390 1,743,809 20,704,803
Fund Balances - Ending 17,217,270$ 21,101$ 1,392,998$ 1,811,509$ 20,442,878$
City of Auburn, Washington
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
NON-MAJOR GOVERNMENT FUNDS
For the Year Ended December 31, 2017
City of Auburn: 2017 CAFR Fund Financial Statements and Schedules
112
City of Auburn: 2017 CAFR Fund Financial Statements and Schedules
113
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: 2017 CAFR Fund Financial Statements and Schedules
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Page 1 of 2
Hotel/Arterial Housing
Local Motel Street Drug Community
Streets Tax Preservation Forfeiture Development
ASSETS:
Cash and Cash Equivalents 3,487,565$ 203,003$ 1,895,118$ 390,381$ 65,575$
Other Receivables - - 345,829 - -
Due From Other Governmental Units - - 7,939 10,605 161,956
Total Assets 3,487,565 203,003 2,248,886 400,986 227,531
LIABILITIES AND FUND BALANCES:
Liabilities:
Current Payables 544,215 2,632 209,049 9,137 132,594
Interfund Payable (Note 5)- - - - 50,000
Other Liabilities Payable - - - 6,795 33
Total Liabilities 544,215 2,632 209,049 15,932 182,627
Fund Balances:
Restricted - 200,371 1,557,947 381,136 44,904
Committed 2,766,701 - 456,407 - -
Assigned 176,649 - 25,483 3,918 -
Total Fund Balances 2,943,350 200,371 2,039,837 385,054 44,904
Total Liabilities and Fund Balances 3,487,565$ 203,003$ 2,248,886$ 400,986$ 227,531$
City of Auburn, Washington
COMBINING BALANCE SHEET
NON-MAJOR SPECIAL REVENUE FUNDS
December 31, 2017
City of Auburn: 2017 CAFR Fund Financial Statements and Schedules
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Page 2 of 2
Total
Business Nonmajor
Recreational Improvement Mitigation Special Revenue
Trails Area Fees Funds
57,526$ 95,741$ 11,481,881$ 17,676,790$
- - - 345,829
- - - 180,500
57,526 95,741 11,481,881 18,203,119
- 1,268 - 898,895
- - - 50,000
- - - 6,795
- - 30,126 30,159
- 1,268 30,126 985,849
57,022 93,710 11,395,640 13,730,730
- - - 3,223,108
504 763 56,115 263,432
57,526 94,473 11,451,755 17,217,270
57,526$ 95,741$ 11,481,881$ 18,203,119$
City of Auburn: 2017 CAFR Fund Financial Statements and Schedules
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Page 1 of 2
Hotel/Arterial Housing
Local Motel Street Drug Community
Streets Tax Preservation Forfeiture Development
REVENUES:
Taxes:
Retail Sales & Use 2,632,107$ -$ -$ -$ -$
Interfund Utility - - 648,609 - -
Utility - - 1,458,542 - -
Excise - 124,486 - - -
Other - - - - -
Intergovernmental - - 1,557,947 13,230 653,843
Charges for Services - - - 26,628 -
Investment Earnings 32,475 1,738 25,483 3,918 -
Miscellaneous - - - 107,912 -
Total Revenues 2,664,582 126,224 3,690,581 151,688 653,843
EXPENDITURES:
Current:
Security of Persons and Property - - - 220,086 -
Transportation 2,290,133 - 5,063,514 - -
Economic Environment - 100,999 - - 653,843
Total Expenditures 2,290,133 100,999 5,063,514 220,086 653,843
Excess (Deficiency) of Revenues
Over (Under) Expenditures 374,449 25,225 (1,372,933) (68,398) -
OTHER FINANCING SOURCES (USES):
Transfers In (Note 5)150,000 - 194,915 - -
Transfers Out (Note 5)(5,826) (5,000) (51,776) - -
Total Other Financing Sources (Uses)144,174 (5,000) 143,139 - -
Net Change in Fund Balances 518,623 20,225 (1,229,794) (68,398) -
Fund Balances - Beginning 2,424,727 180,146 3,269,631 453,452 44,904
Fund Balances - Ending 2,943,350$ 200,371$ 2,039,837$ 385,054$ 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, 2017
City of Auburn: 2017 CAFR Fund Financial Statements and Schedules
117
Page 2 of 2
Total
Business Nonmajor
Recreational Improvement Mitigation Special Revenue
Trails Area Fees Funds
-$ -$ -$ 2,632,107$
- - - 648,609
- - - 1,458,542
- - - 124,486
- 42,535 - 42,535
7,200 - - 2,232,220
- - 2,614,142 2,640,770
504 763 112,605 177,486
- - - 107,912
7,704 43,298 2,726,747 10,064,667
- - 400,000 620,086
- - - 7,353,647
- 7,297 - 762,139
- 7,297 400,000 8,735,872
7,704 36,001 2,326,747 1,328,795
- - - 344,915
- - (1,969,497) (2,032,099)
- - (1,969,497) (1,687,184)
7,704 36,001 357,250 (358,389)
49,822 58,472 11,094,505 17,575,659
57,526$ 94,473$ 11,451,755$ 17,217,270$
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118
Variance with
Final Final Budget
Original Adopted Actual Positive
(GAAP Basis)(GAAP Basis)Results (Negative)
REVENUES:
Taxes:
Property 1,750,000$ 1,750,000$ 2,632,107$ 882,107$
Investment Earnings 9,100 9,100 32,475 23,375
Total Revenues 1,759,100 1,759,100 2,664,582 905,482
EXPENDITURES:
Current:
Transportation 2,417,173 3,120,142 2,290,133 830,009
Total Expenditures 2,417,173 3,120,142 2,290,133 830,009
Excess (Deficiency) of Revenues
Over (Under) Expenditures (658,073) (1,361,042) 374,449 1,735,491
OTHER FINANCING SOURCES (USES):
Transfers In (Note 5)150,000 150,000 150,000 -
Transfers Out (Note 5)(666) (11,051) (5,826) 5,225
Total Other Financing Sources (Uses)149,334 138,949 144,174 5,225
Net Change in Fund Balances (508,739) (1,222,093) 518,623 1,740,716
Fund Balances - Beginning 1,401,882 2,424,727 2,424,727 -
Fund Balances - Ending 893,143$ 1,202,634$ 2,943,350$ 1,740,716$
Budget Amounts
For the Year Ended December 31, 2017
City of Auburn, Washington
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
LOCAL STREETS SPECIAL REVENUE FUND
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119
Variance with
Final Final Budget
Original Adopted Actual Positive
(GAAP Basis)(GAAP Basis)Results (Negative)
REVENUES:
Taxes:
Excise 110,000$ 110,000$ 124,486$ 14,486$
Investment Earnings 400 400 1,738 1,338
Total Revenues 110,400 110,400 126,224 15,824
EXPENDITURES:
Current:
Economic Environment 100,400 141,000 100,999 40,001
Total Expenditures 100,400 141,000 100,999 40,001
Excess (Deficiency) of Revenues
Over (Under) Expenditures 10,000 (30,600) 25,225 55,825
OTHER FINANCING SOURCES (USES):
Transfers Out (Note 5)(10,000) (5,000) (5,000) -
Total Other Financing sources and Uses (10,000) (5,000) (5,000) -
Net Change in fund Balances - (35,600) 20,225 55,825
Fund Balances - Beginning 84,044 180,146 180,146 -
Fund Balances - Ending 84,044$ 144,546$ 200,371$ 55,825$
Budget Amounts
For the Year Ended December 31, 2017
City of Auburn, Washington
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
HOTEL/MOTEL TAX SPECIAL REVENUE FUND
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120
Variance with
Final Final Budget
Original Adopted Actual Positive
(GAAP Basis)(GAAP Basis)Results (Negative)
REVENUES:
Taxes:
Interfund Utility 632,300$ 632,300$ 648,609$ 16,309$
Utility 1,416,300 1,416,300 1,458,542 42,242
Intergovernmental 1,402,100 2,354,398 1,557,947 (796,451)
Investment Earnings 4,900 4,900 25,483 20,583
Total Revenues 3,455,600 4,407,898 3,690,581 (717,317)
EXPENDITURES:
Current:
Transportation 4,768,470 7,439,019 5,063,514 2,375,505
Total Expenditures 4,768,470 7,439,019 5,063,514 2,375,505
Excess (Deficiency) of Revenues
Over (Under) Expenditures (1,312,870) (3,031,121) (1,372,933) 1,658,188
OTHER FINANCING SOURCES (USES):
Transfers In (Note 5)300,000 431,750 194,915 (236,835)
Transfers Out (Note 5)- (56,535) (51,776) 4,759
Total Other Financing Sources (Uses)300,000 375,215 143,139 (232,076)
Net Change in Fund Balances (1,012,870) (2,655,906) (1,229,794) 1,426,112
Fund Balances - Beginning 1,378,878 3,269,631 3,269,631 -
Fund Balances - Ending 366,008$ 613,725$ 2,039,837$ 1,426,112$
Budget Amounts
For the Year Ended December 31, 2017
City of Auburn, Washington
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
ARTERIAL STREET PRESERVATION SPECIAL REVENUE FUND
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121
Variance with
Final Final Budget
Original Adopted Actual Positive
(GAAP Basis)(GAAP Basis)Results (Negative)
REVENUES:
Taxes:
Intergovernmental 17,000$ 17,000$ 13,230$ (3,770)$
Charges for Services 14,000 14,000 26,628 12,628
Investment Earnings 1,100 1,100 3,918 2,818
Miscellaneous 55,000 55,000 107,912 52,912
Total Revenues 87,100 87,100 151,688 64,588
EXPENDITURES:
Current:
Security of Persons & Property 251,016 251,016 220,086 30,930
Total Expenditures 251,016 251,016 220,086 30,930
Excess (Deficiency of Revenues
Over (Under) Expenditures (163,916) (163,916) (68,398) 95,518
Net Change in Fund Balances (163,916) (163,916) (68,398) 95,518
Fund Balances - Beginning 357,897 453,452 453,452 -
Fund Balances - Ending 193,981$ 289,536$ 385,054$ 95,518$
Budget Amounts
For the Year Ended December 31, 2017
City of Auburn, Washington
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
DRUG FORFEITURE SPECIAL REVENUE FUND
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122
Variance with
Final Final Budget
Original Adopted Actual Positive
(GAAP Basis)(GAAP Basis)Results (Negative)
REVENUES:
Intergovernmental 710,000$ 850,000$ 653,843$ (196,157)$
Total Revenues 710,000 850,000 653,843 (196,157)
EXPENDITURES:
Current:
Economic Environment 712,450 852,450 653,843 198,607
Total Expenditures 712,450 852,450 653,843 198,607
Excess (Deficiency) of Revenues
Over (Under) Expenditures (2,450) (2,450) - 2,450
Net Change in Fund Balances (2,450) (2,450) - 2,450
Fund Balances - Beginning 54,905 44,904 44,904 -
Fund Balances - Ending 52,455$ 42,454$ 44,904$ 2,450$
Budget Amounts
For the Year Ended December 31, 2017
City of Auburn, Washington
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
HOUSING & COMMUNITY DEVELOPMENT SPECIAL REVENUE FUND
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123
Variance with
Final Final Budget
Original Adopted Actual Positive
(GAAP Basis)(GAAP Basis)Results (Negative)
REVENUES:
Intergovernmental 7,200$ 7,200$ 7,200$ -$
Investment Earnings 140 140 504 364
Total Revenues 7,340 7,340 7,704 364
Excess (Deficiency) of Revenues
Over (Under) Expenditures 7,340 7,340 7,704 364
Net Change in Fund Balances 7,340 7,340 7,704 364
Fund Balances - Beginning 49,658 49,822 49,822 -
Fund Balances - Ending 56,998$ 57,162$ 57,526$ 364$
Budget Amounts
For the Year Ended December 31, 2017
City of Auburn, Washington
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
RECREATION TRAILS SPECIAL REVENUE FUND
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124
Variance with
Final Final Budget
Original Adopted Actual Positive
(GAAP Basis)(GAAP Basis)Results (Negative)
REVENUES:
Taxes:
Other 55,000$ 55,000$ 42,535$ (12,465)$
Investment Earnings 200 200 763 563
Total Revenues 55,200 55,200 43,298 (11,902)
EXPENDITURES:
Current:
Economic Environment 55,000 55,000 7,297 47,703
Total Expenditures 55,000 55,000 7,297 47,703
Excess (Deficiency) of Revenues
Over (Under) Expenditures 200 200 36,001 35,801
Net Change in Fund Balances 200 200 36,001 35,801
Fund Balances - Beginning 48,516 58,472 58,472 -
Fund Balances - Ending 48,716$ 58,672$ 94,473$ 35,801$
Budget Amounts
For the Year Ended December 31, 2017
City of Auburn, Washington
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
BUSINESS IMPROVEMENT AREA SPECIAL REVENUE FUND
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125
Variance with
Final Final Budget
Original Adopted Actual Positive
(GAAP Basis)(GAAP Basis)Results (Negative)
REVENUES:
Investment Earnings 20,500$ 20,500$ 89,375$ 68,875$
Total Revenues 20,500 20,500 89,375 68,875
Excess (Deficiency) of Revenues
Over (Under) Expenditures 20,500 20,500 89,375 68,875
OTHER FINANCING SOURCES (USES):
Transfers In (Note 5)- 1,000,000 1,000,000 -
Transfers Out (Note 5)(200,000) (242,138) - 242,138
Total Other Financing Sources (Uses)(200,000) 757,862 1,000,000 242,138
Net Change in Fund Balances (179,500) 778,362 1,089,375 311,013
Fund Balances - Beginning 7,546,199 8,709,937 8,709,937 -
Fund Balances - Ending 7,366,699$ 9,488,299$ 9,799,312$ 311,013$
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 (9,799,312)
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, 2017
City of Auburn, Washington
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
CUMULATIVE RESERVE SPECIAL REVENUE FUND
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126
Variance with
Final Final Budget
Original Adopted Actual Positive
(GAAP Basis)(GAAP Basis)Results (Negative)
REVENUES:
Charges for Services 1,512,000$ 1,582,000$ 2,614,142$ 1,032,142$
Investment Earnings 8,200 8,200 112,605 104,405
Total Revenues 1,520,200 1,590,200 2,726,747 1,136,547
EXPENDITURES:
Current:
Security of Person & Property 50,000 400,000 400,000 -
Total Expenditures 50,000 400,000 400,000 -
Excess (Deficiency) of Revenues
Over (Under) Expenditures 1,470,200 1,190,200 2,326,747 1,136,547
OTHER FINANCING SOURCES (USES):
Transfers In (Note 5)- 400,000 - (400,000)
Transfers Out (Note 5)(1,315,081) (3,938,042) (1,969,497) 1,968,545
Total Other Financing Sources (Uses)(1,315,081) (3,538,042) (1,969,497) 1,568,545
Net Change in Fund Balances 155,119 (2,347,842) 357,250 2,705,092
Fund Balances - Beginning 4,274,362 11,094,505 11,094,505 -
Fund Balances - Ending 4,429,481$ 8,746,663$ 11,451,755$ 2,705,092$
Budget Amounts
For the Year Ended December 31, 2017
City of Auburn, Washington
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
MITIGATION SPECIAL REVENUE FUND
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127
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 2016 General Obligation Bonds
Accounts for the debt service on a Council-approved bond issue to refund on a current basis the 2005
General Obligation Refunding Airport Bonds and refunding on an advance basis the 2006A General
Obligation Bonds for Golf and Cemetery.
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.
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128
Total
GO Library 2010 2010 2016 Nonmajor
Refunding A & B C & D Local Combined Refunding LID Special Debt Service
Bond Debt Annex Revitalization Golf/Cemetery Guarantee Assessments Funds
ASSETS:
Cash and Cash Equivalents -$ -$ 11,396$ 19$ 1,603$ 8,083$ 21,101$
Receivables:
Special Assessments - - - - - 7,283 7,283
Total Assets - - 11,396 19 1,603 15,366 28,384
LIABILITIES, DEFERRED INFLOWS AND FUND BALANCES:
Deferred Inflows of Resources:
Unavailable Revenue - Special Assessments - - - - - 7,283 7,283
Total Deferred Inflows of Resources - - - - - 7,283 7,283
Fund Balances:
Restricted - - - - 1,603 8,083 9,686
Assigned - - 11,396 19 - - 11,415
Total Fund Balances - - 11,396 19 1,603 8,083 21,101
Total Liabilities, Deferred Inflows and
Fund Balances -$ -$ 11,396$ 19$ 1,603$ 15,366$ 28,384$
City of Auburn, WashingtonCOMBINING BALANCE SHEET
NON-MAJOR DEBT SERVICE FUNDS
December 31, 2017
City of Auburn: 2017 CAFR Fund Financial Statements and Schedules
129
Total
GO Library 2010 2010 2016 Nonmajor
Refunding A & B C & D Local Combined Refunding L I D Special Debt Service
Bond Debt Annex Revitalization Golf/Cemetery Guarantee Assessments Funds
REVENUES:
Taxes:
Retail Sales & Use -$ -$ 259,859$ -$ -$ -$ 259,859$
Special Assessments - - - - - 3,835 3,835
Intergovernmental - 366,581 117,192 - - - 483,773
Investment Earnings - - 906 19 15 92 1,032
Miscellanous - - - - - 1,044 1,044
Total Revenues - 366,581 377,957 19 15 4,971 749,543
EXPENDITURES:
Debt Service:
Principal 260,000 560,000 230,000 323,849 - 6,259 1,380,108
Interest 23,850 1,123,191 359,071 50,766 - 986 1,557,864
Total Expenditures 283,850 1,683,191 589,071 374,615 - 7,245 2,937,972
Excess (Deficiency) of Revenues
Over (Under) Expenditures (283,850) (1,316,610) (211,114) (374,596) 15 (2,274) (2,188,429)
OTHER FINANCING SOURCES (USES):
Transfers In (Note 5)283,850 1,316,610 222,510 374,615 - - 2,197,585
Total Other Financing Sources (Uses)283,850 1,316,610 222,510 374,615 - - 2,197,585
Net Change in Fund Balances - - 11,396 19 15 (2,274) 9,156
Fund Balances - Beginning - - - - 1,588 10,357 11,945
Fund Balances - Ending -$ -$ 11,396$ 19$ 1,603$ 8,083$ 21,101$
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, 2017
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130
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131
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.
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132
Municipal Nonmajor
Park Local Capital Project
Construction Revitalization Funds
ASSETS:
Cash and Cash Equivalents 1,076,584$ 374,966$ 1,451,550$
Receivables:
Customer Accounts 3,793 - 3,793
Total Assets 1,080,377 374,966 1,455,343
LIABILITIES AND FUND BALANCES:
Liabilities:
Current Payables 62,345 - 62,345
Total Liabilities 62,345 - 62,345
Fund Balances:
Restricted 1,018,032 - 1,018,032
Assigned - 374,966 374,966
Total Fund Balances 1,018,032 374,966 1,392,998
Total Liabilities and Fund Balances 1,080,377$ 374,966$ 1,455,343$
City of Auburn, Washington
COMBINING BALANCE SHEET
CAPITAL PROJECT FUNDS
December 31, 2017
City of Auburn: 2017 CAFR Fund Financial Statements and Schedules
133
Municipal Nonmajor
Park Local Capital Project
Construction Revitalization Funds
REVENUES:
Taxes:
Property 138,510$ -$ 138,510$
Intergovernmental 75,000 - 75,000
Charges for Services 9,395 - 9,395
Investment Earnings 11,350 3,503 14,853
Miscellaneous 45,030 - 45,030
Total Revenues 279,285 3,503 282,788
EXPENDITURES:
Capital Outlay 1,198,277 19,027 1,217,304
Total Expenditures 1,198,277 19,027 1,217,304
Excess (Deficiency) of Revenues
Over (Under) Expenditures (918,992) (15,524) (934,516)
OTHER FINANCING SOURCES (USES):
Transfers In (Note 5)954,124 - 954,124
Total Other Financing Sources (Uses)954,124 - 954,124
Net Change in Fund Balances 35,132 (15,524) 19,608
Fund Balances - Beginning 982,900 390,490 1,373,390
Fund Balances - Ending 1,018,032$ 374,966$ 1,392,998$
City of Auburn, Washington
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
CAPITAL PROJECT FUNDS
For the Year Ended December 31, 2017
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135
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: 2017 CAFR Fund Financial Statements and Schedules
136
Cemetery
Endowed
Care
ASSETS:
Cash and Cash Equivalents
Non-Expendable Trust 1,811,509$
Total Assets 1,811,509
LIABILITIES AND FUND BALANCES:
FUND BALANCES:
Nonspendable 1,717,134
Assigned 94,375
Total Fund Balances 1,811,509
Total Liabilities and Fund Balances 1,811,509$
City of Auburn, Washington
BALANCE SHEET
PERMANENT FUND
December 31, 2017
City of Auburn: 2017 CAFR Fund Financial Statements and Schedules
137
Cemetery
Endowed
Care
REVENUES:
Increase to Endowment from Lot Sales 51,091$
Investment Earnings 16,609
Total Revenues 67,700
EXPENDITURES:
Excess (Deficiency) of Revenues
Over (Under) Expenditures 67,700
Net Change in Fund Balance 67,700
Fund Balance - Beginning 1,743,809
Fund Balance - Ending 1,811,509$
For the Year Ended December 31, 2017
City of Auburn, Washington
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
PERMANENT FUND
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139
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.
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140
Total
Nonmajor
Enterprise
Airport Cemetery Funds
ASSETS:
Current Assets:
Cash and Cash Equivalents 957,861$ 815,585$ 1,773,446$
Restricted Cash:
Customer Deposits 89,180 - 89,180
Customer Accounts 6,982 - 6,982
Due From Other Governmental Units 13,990 - 13,990
Inventories - 8,500 8,500
Total Current Assets 1,068,013 824,085 1,892,098
Noncurrent Assets:
Capital Assets:
Land 3,653,343 342,836 3,996,179
Buildings and Equipments 3,042,254 1,022,267 4,064,521
Improvements Other Than Buildings 9,907,670 1,175,259 11,082,929
Construction in Progress 318,488 - 318,488
Less: Accumulated Depreciation (7,594,183) (1,565,240) (9,159,423)
Total Capital Assets (Net of A/D)9,327,572 975,122 10,302,694
Total Noncurrent Assets 9,327,572 975,122 10,302,694
Total Assets 10,395,585 1,799,207 12,194,792
DEFERRED OUTFLOWS OF RESOURCES:
Deferred Outflow from Bond Refunding 21,837 - 21,837
Deferred Outflow Related to Pensions 4,454 46,184 50,638
26,291 46,184 72,475
LIABILITIES:
Current Liabilities:
Current Payables 118,852 50,260 169,112
Interfund Payables 93,782 - 93,782
Employee Leave Benefits - Current - 18,464 18,464
General Obligation Bonds Payable - Current 176,401 - 176,401
Customer Deposits 88,407 - 88,407
Total Current Liabilities 477,442 68,724 546,166
Noncurrent Liabilities:
Employee Leave Benefits - 5,576 5,576
General Obligation Bonds Payable 186,421 - 186,421
Net Pension Liability 14,493 157,176 171,669
Total Noncurrent Liabilities 200,914 162,752 363,666
Total Liabilities 678,356 231,476 909,832
DEFERRED INFLOWS OF RESOURCES:
Deferred Inflow Related to Pensions (82) 39,194 39,112
NET POSITION:
Net Investment in Capital Assets 8,964,750 975,122 9,939,872
Unrestricted 778,852 599,599 1,378,451
Total Net Position 9,743,602$ 1,574,721$ 11,318,323$
City of Auburn, Washington
COMBINING STATEMENT OF NET POSITION
NON-MAJOR ENTERPRISE FUNDS
December 31, 2017
City of Auburn: 2017 CAFR Fund Financial Statements and Schedules
141
Total
Nonmajor
Enterprise
Airport Cemetery Funds
OPERATING REVENUES:
Charges for Services 70,750$ 1,336,570$ 1,407,320$
Other Operating Revenue 804,040 - 804,040
Total Operating Revenues 874,790 1,336,570 2,211,360
OPERATING EXPENSES:
Operations & Maintenance 412,580 788,429 1,201,009
Administration 67,284 291,025 358,309
Depreciation/Amortization 462,843 47,383 510,226
Other Operating Expenses 505 15,749 16,254
Total Operating Expenses 943,212 1,142,586 2,085,798
Operating Income (Loss)(68,422) 193,984 125,562
NON-OPERATING REVENUE (EXPENSE):
Interest Revenue 9,829 6,727 16,556
Other Non-Operating Revenues 33,901 - 33,901
Other Non-Operating Expenses (20,759) - (20,759)
Total Non-Operating Revenue (Expense)22,971 6,727 29,698
Income (Loss) Before Contributions & Transfers (45,451) 200,711 155,260
Transfers In (Note 5)274,937 - 274,937
Transfers Out (Note 5)- (400) (400)
Change in Net Position 229,486 200,311 429,797
Net Position, January 1 9,514,116 1,374,410 10,888,526
Net Position, December 31 9,743,602$ 1,574,721$ 11,318,323$
City of Auburn, Washington
COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION
NON-MAJOR ENTERPRISE FUNDS
For the Year Ended December 31, 2017
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Page 1 of 2
Total
Non Major
Enterprise
Airport Cemetery Funds
CASH FLOWS FROM OPERATING ACTIVITIES:
Cash Received From Users 876,179$ 1,336,570$ 2,212,749$
Cash Paid to Suppliers for Goods & Services (411,559) (401,320) (812,879)
Cash Paid for Taxes (552) (15,750) (16,302)
Cash Paid to Employees (1,378) (720,026) (721,404)
Other Non-Operating Revenue 13,740 - 13,740
Net Cash Provided (Used) By Operating Activities 476,430 199,474 675,904
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:
Interfund Loan Payable (39,900) - (39,900)
Operating Grant Received 20,161 - 20,161
Transfers from Other Funds 274,937 - 274,937
Operating Transfers Out - (400) (400)
Net Cash Provided (Used) by Non-Capital Financing Activities 255,198 (400) 254,798
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES:
Purchase of Capital Assets (398,059) - (398,059)
Capital Grant 20,887 - 20,887
Premium & Bond Issuance Costs 10,918 - 10,918
Principal Payment on Debt (171,023) - (171,023)
Interest Payment on Debt (20,759) - (20,759)
Net Cash Provided (Used) for Capital and Related Financing Activities (558,036) - (558,036)
CASH FLOW FROM INVESTING ACTIVITIES:
Interest Received 9,829 6,727 16,556
Net Cash Provided (Used) in Investing Activities 9,829 6,727 16,556
Net Increase (Decrease) in Cash and Cash Equivalents 183,421 205,801 389,222
Cash and Cash Equivalents - Beginning of Year 863,620 609,784 1,473,404
Cash and Cash Equivalents - End of Year 1,047,041$ 815,585$ 1,862,626$
CASH AT END OF YEAR CONSISTS OF:
Cash and Cash Equivalents 957,861 815,585 1,773,446
Restricted Cash - Customer Deposits 89,180 - 89,180
Total Cash 1,047,041$ 815,585$ 1,862,626$
City of Auburn, Washington
COMBINING STATEMENT OF CASH FLOWS
NON-MAJOR ENTERPRISE FUNDS
For the Fiscal Year Ended December 31, 2017
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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)(68,422)$ 193,984$ 125,562$
ADJUSTMENTS TO RECONCILE OPERATING INCOME TO
NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES:
Depreciation 462,843 47,383 510,226
Other Non-Operating Revenue 13,740 - 13,740
Asset (Increases) Decreases:
Accounts Receivable (6,982) - (6,982)
Inventory - (505) (505)
Liability Increases (Decreases):
Accounts & Vouchers Payable 71,777 (17,482) 54,295
Deposits Payable 8,371 - 8,371
Wages & Benefits Payable (1,378) (21,831) (23,209)
Compensated Absences Payable (3,519) (2,075) (5,594)
Total Adjustments 544,852 5,490 550,342
Net Cash Provided (Used) by Operating Activities 476,430$ 199,474$ 675,904$
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, 2017
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City of Auburn: 2017 CAFR Fund Financial Statements and Schedules
145
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: 2017 CAFR Fund Financial Statements and Schedules
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Workers Comp Information Equipment
Insurance Self Insurance Facilities Services Rental Total
ASSETS:
Current Assets:
Cash and Cash Equivalents 2,015,648$ 1,631,041$ 1,965,515$ 3,866,232$ 6,659,283$ 16,137,719$
Customer Accounts - - 16,685 - - 16,685
Due From Other Governmental Units - - 15 6,196 - 6,211
Inventories - - - - 242,217 242,217
Total Current Assets 2,015,648 1,631,041 1,982,215 3,872,428 6,901,500 16,402,832
Capital Assets:
Buildings and Equipment - - - 8,279,035 16,772,459 25,051,494
Improvements Other than Buildings - - - 7,497 109,661 117,158
Construction in Progress - - - 64,421 44,627 109,048
Less: Accumulated Depreciation - - - (6,895,423) (10,068,421) (16,963,844)
Total Capital Assets (Net of A/D)- - - 1,455,530 6,858,326 8,313,856
Total Noncurrent Assets - - - 1,455,530 6,858,326 8,313,856
Total Assets 2,015,648 1,631,041 1,982,215 5,327,958 13,759,826 24,716,688
DEFERRED OUTFLOWS OF RESOURCES:
Deferred Outflow Related to Pensions - 7,829 73,518 163,464 65,645 310,456
LIABILITIES:
Current Liabilities:
Current Payables 148 5,922 240,290 230,327 295,273 771,960
Customer Deposits - - 300 - - 300
Employee Leave Benefits - Current - 5,087 69,193 111,724 23,414 209,418
Other Liabilities Payable - - - - 41,608 41,608
Total Current Liabilities 148 11,009 309,783 342,051 360,295 1,023,286
Noncurrent Liabilities
Employee Leave Benefits - 1,536 20,897 33,742 7,071 63,246
Other LT Liabilities Payable - - - - 67,861 67,861
Net Pension Liability - 23,599 217,525 471,592 1,177,640 1,890,356
Total Noncurrent Liabilities - 25,135 238,422 505,334 1,252,572 2,021,463
Total Liabilities 148 36,144 548,205 847,385 1,612,867 3,044,749
DEFERRED INFLOWS OF RESOURCES:
Deferred Inflow Related to Pensions - 7,134 55,233 162,796 111,858 337,021
NET POSITION:
Net Investment in Capital Assets - - - 1,455,530 6,748,857 8,204,387
Unrestricted 2,015,500 1,595,592 1,452,295 3,025,711 5,351,889 13,440,987
Total Net Position 2,015,500$ 1,595,592$ 1,452,295$ 4,481,241$ 12,100,746$ 21,645,374$
City of Auburn, Washington
COMBINING STATEMENT OF NET POSITION
INTERNAL SERVICE FUNDS
December 31, 2017
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Workers Comp Information Equipment
Insurance Self Insurance Facilities Services Rental Total
OPERATING REVENUES:
Charges for Services -$ 941,648$ 3,374,196$ 5,973,721$ 3,985,495$ 14,275,060$
Other Operating Revenue - - 110,838 92,023 - 202,861
Total Operating Revenues - 941,648 3,485,034 6,065,744 3,985,495 14,477,921
OPERATING EXPENSES:
Operations & Maintenance - 423,759 2,752,306 5,541,241 1,440,699 10,158,005
Administration 52,546 - - - 809,345 861,891
Depreciation/Amortization - - - 680,431 1,182,134 1,862,565
Total Operating Expenses 52,546 423,759 2,752,306 6,221,672 3,432,178 12,882,461
Operating Income (Loss)(52,546) 517,889 732,728 (155,928) 553,317 1,595,460
NON-OPERATING REVENUE (EXPENSE):
Interest Revenue 11,646 13,175 19,817 33,166 57,943 135,747
Other Non-Operating Revenues - - 57,928 - 84,109 142,037
Gain (Loss) on Sale of Capital Assets - - - - 16,512 16,512
Interest Expense - - - - (3,580) (3,580)
Total Non-Operating Revenue (Expense)11,646 13,175 77,745 33,166 154,984 290,716
Income (Loss) Before Contributions (40,900) 531,064 810,473 (122,762) 708,301 1,886,176
Transfers In (Note 5)670,715 - - 368,953 472,032 1,511,700
Transfers Out (Note 5)- - (888,503) (56,300) - (944,803)
Change in Net Position 629,815 531,064 (78,030) 189,891 1,180,333 2,453,073
Net Position, January 1 1,385,685 1,064,528 1,530,324 4,291,350 10,920,413 19,192,301
Total Net Position - Ending 2,015,500$ 1,595,592$ 1,452,295$ 4,481,241$ 12,100,746$ 21,645,374$
City of Auburn, Washington
COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION
INTERNAL SERVICE FUNDS
For the Year Ended December 31, 2017
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Page 1 of 2
Insurance
Workers Comp
Self Insurance Facilities
Information
Services
Equipment
Rental Total
CASH FLOWS FROM OPERATING ACTIVITIES:
Cash Received From Users -$ 941,648$ 3,472,445$ 6,065,744$ 3,985,670$ 14,465,507$
Cash Paid to Suppliers for Goods & Services (52,398) (332,757) (1,777,182) (3,055,378) (1,269,164) (6,486,879)
Cash Paid to Employees - (104,518) (965,495) (2,596,884) (875,304) (4,542,201)
Other Cash Received - - - (169) 42 (127)
Net Cash Provided (Used) By Operating Activities (52,398) 504,373 729,768 413,313 1,841,244 3,436,300
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:
Operating Grant Received - - 57,928 - - 57,928
Transfers In 670,715 - - 368,953 472,032 1,511,700
Transfers Out - - (888,503) (56,300) - (944,803)
Net Cash Provided (Used) by Non-Capital Financing Activities 670,715 - (830,575) 312,653 472,032 624,825
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES:
Proceeds from Sale of Equipment - - - - 189,666 189,666
Purchase of Capital Assets - - - (533,694) (1,671,996) (2,205,690)
Proceeds from Insurance Settlement - - - - 84,067 84,067
Interest Payment on Debt - - - - (3,580) (3,580)
Net Cash Provided (Used) for Capital and Related Financing Activities - - - (533,694) (1,401,843) (1,935,537)
CASH FLOW FROM INVESTING ACTIVITIES:
Interest Received 11,646 13,175 19,817 33,166 57,943 135,747
Net Cash Provided (Used) in Investing Activities 11,646 13,175 19,817 33,166 57,943 135,747
Net Increase (Decrease) in Cash and Cash Equivalents 629,963 517,548 (80,990) 225,438 969,376 2,261,335
Cash and Cash Equivalents - Beginning of Year 1,385,685 1,113,493 2,046,505 3,640,794 5,689,907 13,876,384
Cash and Cash Equivalents - End of Year 2,015,648$ 1,631,041$ 1,965,515$ 3,866,232$ 6,659,283$ 16,137,719$
CASH AT END OF YEAR CONSISTS OF:
Cash and Cash Equivalents 2,015,648 1,631,041 1,965,515 3,866,232 6,659,283 16,137,719
Total Cash 2,015,648$ 1,631,041$ 1,965,515$ 3,866,232$ 6,659,283$ 16,137,719$
City of Auburn, Washington
COMBINING STATEMENT OF CASH FLOWS
INTERNAL SERVICE FUNDS
For the Fiscal Year Ended December 31, 2017
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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)(52,546)$ 517,889$ 732,728$ (155,928)$ 553,317$ 1,595,460$
ADJUSTMENTS TO RECONCILE OPERATING INCOME TO
NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES:
Depreciation - - - 680,431 1,182,134 1,862,565
Other Non-Operating Revenues 42 42
Asset (Increases) Decreases:
Accounts Receivable - - (12,589) (169) 175 (12,583)
Inventory - - - - (17,101) (17,101)
Liability Increases (Decreases):
Accounts & Vouchers Payable 148 (10,370) 45,776 (33,024) 151,807 154,337
Wages & Benefits Payable - (3,438) (34,983) (90,883) (28,543) (157,847)
Compensated Absences Payable - 292 (1,164) 12,886 (587) 11,427
Total Adjustments 148 (13,516) (2,960) 569,241 1,287,927 1,840,840
Net Cash Provided (Used) by Operating Activities (52,398)$ 504,373$ 729,768$ 413,313$ 1,841,244$ 3,436,300$
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, 2017
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City of Auburn: 2017 CAFR Fund Financial Statements and Schedules
151
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
1/1/2017 Additions Deductions 12/31/2017
ASSETS:
Cash and Cash Equivalents 241,446$ 6,929,371$ 6,643,071$ 527,746$
Other Current Assets 3,713 274,954 271,814 6,853
Total Assets 245,159$ 7,204,325$ 6,914,885$ 534,599$
LIABILITIES:
Due to Other Government Units 245,159 13,507,224 13,796,664 534,599
Total Liabilities 245,159$ 13,507,224$ 13,796,664$ 534,599$
City of Auburn, Washington
STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
AGENCY FUND
For the Fiscal Year Ended December 31, 2017
City of Auburn: 2017 CAFR Statistical Section
153
City of Auburn
STATISTICAL SECTION
December 31, 2017
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 .............................................................................................................. 154
Schedule 2 Changes in net position ....................................................................................................................... 155
Schedule 3 Fund balances, government funds..................................................................................................... 156
Schedule 4 Changes in fund balances, government funds ................................................................................... 157
Schedule 5 Tax revenues by source, government funds ..................................................................................... 158
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 ....................................................................................................................... 159
Schedule 7 Property tax data ................................................................................................................................ 160
Schedule 8 Property tax levies and collections .....................................................................................................162
Schedule 9 Principal taxpayers-property taxes-sales taxes ................................................................................. 163
Schedule 10 Retail tax collections by sector .......................................................................................................... 164
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 ................................................................................................... 165
Schedule 12 Computation of legal debt margin ..................................................................................................... 166
Schedule 13 Legal debt margin ratios ..................................................................................................................... 166
Schedule 14 Computation of net direct and estimated overlapping debt............................................................ 167
Schedule 15 Ratios of net general bonded debt to assessed value ...................................................................... 168
Schedule 16 Pledged revenue bond coverages ..................................................................................................... 169
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 .............................................................................................170
Schedule 18 Major employers .................................................................................................................................. 171
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 ............................................................................................................. 172
Schedule 20 Operating indicators by department .................................................................................................. 173
Schedule 21 Capital indicators by department ........................................................................................................ 174
Schedule 22 Utility customers by customer class ................................................................................................... 174
City of Auburn: 2017 CAFR Statistical Section
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2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Governmental activities:
Net Investment in Capital Assets 303,564,348$ 314,691,982$ 320,506,701$ 340,941,112$ 354,899,294$ 346,195,793$ 348,080,505$ 361,094,242$ 367,128,894$ 373,368,558$
Restricted 28,965,599 12,741,566 15,180,467 14,230,963 13,164,116 15,019,909 16,404,328 19,470,880 26,745,270 29,854,240
Unrestricted 25,955,501 43,754,879 46,734,364 45,250,090 43,245,050 47,426,352 51,898,566 40,928,090 42,900,814 42,804,107
Total governmental activities net position 358,485,448 371,188,427 382,421,532 400,422,165 411,308,460 408,642,054 416,383,399 421,493,212 436,774,978 446,026,906
Business-type activities:
Net Investment in Capital Assets 144,626,496 150,621,492 152,343,987 166,289,542 173,709,864 165,619,867 169,098,916 187,604,782 195,490,061 205,317,614
Restricted 933,914 2,071,219 4,107,128 4,153,982 4,719,058 16,839,589 14,115,610 4,764,340 3,110,414 1,856,970
Unrestricted 35,859,489 29,546,169 28,642,334 30,523,974 30,439,381 32,880,216 37,724,080 32,974,662 40,797,698 41,987,494
Total business-type activities net position 181,419,899 182,238,880 185,093,449 200,967,498 208,868,303 215,339,672 220,938,606 225,343,784 239,398,173 249,162,078
Primary government:
Net Investment in Capital Assets 448,190,844 465,313,474 472,850,688 507,230,654 528,609,158 511,815,660 517,179,421 548,699,024 562,618,955 578,686,172
Restricted 29,899,513 14,812,785 19,287,595 18,384,945 17,883,174 31,859,498 30,519,938 24,235,220 29,855,684 31,711,210
Unrestricted 61,814,990 73,301,048 75,376,698 75,774,064 73,684,431 80,306,568 89,622,646 73,902,752 83,698,512 84,791,601
Total primary government net position 539,905,347$ 553,427,307$ 567,514,981$ 601,389,663$ 620,176,763$ 623,981,726$ 637,322,005$ 646,836,996$ 676,173,151$ 695,188,984$
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: 2017 CAFR Statistical Section
155
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Expenses
Governmental activities:
General government 8,000,715$ 7,567,085$ 7,934,948$ 8,581,829$ 9,441,887$ 7,508,112$ 8,363,427$ 9,187,539$ 9,557,602$ 10,384,647$
Public safety 28,217,844 25,675,063 25,890,627 27,320,805 27,339,301 27,423,015 27,144,153 29,883,217 32,117,837 32,746,406
Transportation 12,974,861 11,471,167 11,989,752 12,123,615 15,736,610 14,861,834 16,150,877 17,324,036 16,602,993 17,904,352
Physical environment 3,096,696 3,327,836 2,498,539 2,327,911 2,535,877 2,699,301 2,976,461 2,924,046 3,266,375 3,217,885
Culture and recreation 6,271,924 7,561,569 7,307,270 7,606,584 8,310,210 9,184,289 11,094,524 12,096,651 12,811,186 13,539,098
Economic environment 2,608,980 3,000,257 2,499,631 3,135,984 2,914,335 2,346,025 2,751,869 3,044,354 3,224,984 3,859,863
Health and human services 776,224 527,029 578,247 619,172 633,175 510,285 622,374 925,299 573,115 674,270
Interest on long-term debt 226,651 408,471 1,809,322 1,685,055 2,336,960 3,795,024 3,615,211 1,986,853 1,709,647 1,555,803
Total governmental activities expenses 62,173,895 59,538,478 60,508,335 63,400,955 69,248,355 68,327,885 72,718,896 77,371,995 79,863,739 83,882,324
Business-type activities:
Water 8,565,231 8,970,215 10,042,879 8,961,736 9,655,724 11,893,094 11,992,944 13,691,529 13,107,629 12,408,008
Sewer 14,479,299 16,569,297 17,794,958 18,852,402 19,680,724 21,584,215 23,026,216 23,992,161 25,685,370 25,360,718
Storm drainage 5,226,823 7,275,072 6,994,381 6,752,021 8,025,729 7,726,467 7,668,072 8,308,559 8,814,542 8,979,969
Solid waste 10,781,426 11,019,606 9,894,429 9,957,943 11,305,322 12,535,078 12,760,313 12,907,832 13,460,155 14,539,703
Golf course 1,958,703 1,909,758 1,844,108 1,903,836 1,912,174 1,933,597 - - - -
Non-major business-type activities 1,720,603 1,666,754 1,781,204 2,010,776 1,954,104 1,857,252 1,924,874 2,062,695 2,150,693 2,106,557
Total business-type activities expenses 42,732,085 47,410,702 48,351,960 48,438,714 52,533,777 57,529,703 57,372,419 60,962,776 63,218,389 63,394,955
Total primary government expenses 104,905,980$ 106,949,180$ 108,860,294$ 111,839,669$ 121,782,132$ 125,857,588$ 130,091,315$ 138,334,771$ 143,082,128$ 147,277,279$
Program revenues
Governmental activities:
Charges for services
General Government 2,316,125$ 814,095$ 1,168,574$ 1,010,911$ 897,521$ 893,326$ 1,160,198$ 1,243,263$ 939,184$ 1,241,905$
Public Safety 2,674,777 2,854,530 2,938,942 3,867,013 1,016,191 2,103,823 2,273,903 1,993,117 1,468,536 2,523,667
Transportation 1,272,751 1,587,850 960,532 1,042,147 1,819,851 1,967,778 1,660,270 1,446,026 3,265,147 2,118,980
Physical Environment 257,780 147,996 86,306 103,590 36,766 398,564 276,632 384,485 260,555 431,580
Culture and Recreation 917,544 1,048,390 962,558 1,182,688 880,380 873,970 2,876,185 3,052,599 2,508,166 3,073,262
Economic Environment 1,638,579 1,654,692 1,732,397 2,294,916 3,266,188 3,586,844 3,087,853 2,989,579 3,896,453 2,400,940
Health and human services - 989 449 7,528 - - - - - -
Total charges for services 9,077,556 8,108,542 7,849,758 9,508,793 7,916,897 9,824,305 11,335,041 11,109,069 12,338,041 11,790,334
Operating grants and contributions 2,567,788 3,001,401 3,022,835 1,724,711 3,560,707 1,967,252 1,333,652 4,234,309 2,767,931 2,257,646
Capital grants and contributions 94,905,563 12,806,049 10,702,132 19,730,140 17,835,784 5,955,062 6,001,230 19,526,548 13,275,208 13,229,502
Total governmental activities program revenues 106,550,907 23,915,992 21,574,725 30,963,644 29,313,388 17,746,619 18,669,923 34,869,926 28,381,180 27,277,482
Business-type activities:
Charges for services 39,883,386 42,338,079 43,461,742 45,045,488 50,710,688 57,533,735 60,332,817 63,391,139 65,733,943 68,220,200
Operating grants and contributions 55,024 87,454 70,841 116,735 97,052 90,361 111,025 106,286 106,286 106,286
Capital grants and contributions 10,670,660 1,992,259 7,391,111 15,981,735 7,248,835 5,483,344 5,070,810 5,821,857 10,574,852 4,363,568
Total business-type activities program revenue 50,609,070 44,417,792 50,923,694 61,143,958 58,056,575 63,107,440 65,514,652 69,319,282 76,415,081 72,690,054
Total primary government program revenues 157,159,977 68,333,784 72,498,419 92,107,602 87,369,963 80,854,059 84,184,575 104,189,208 104,796,261 99,967,536
Net (expense)/revenue
Governmental activities 44,377,012 (35,622,486) (38,933,610) (32,437,311) (39,934,967) (50,581,266) (54,048,973) (42,502,069) (51,482,559) (56,604,841)
Business-type activities 7,876,985 (2,992,910) 2,571,734 12,705,244 5,522,798 5,577,737 8,142,233 8,356,506 13,196,692 9,295,099
Total primary government net expense 52,253,997$ (38,615,396)$ (36,361,876)$ (19,732,067)$ (34,412,169)$ (45,003,529)$ (45,906,740)$ (34,145,563)$ (38,285,867)$ (47,309,742)$
General revenues and other changes in net position
Governmental activities:
Taxes:
Property taxes 10,804,825$ 13,362,672$ 14,766,470$ 15,204,611$ 14,970,136$ 14,490,790$ 15,867,838$ 17,271,705$ 18,102,286$ 20,967,953$
Retail sales and use tax 17,620,661 14,727,496 15,657,081 16,213,244 16,679,278 18,335,157 19,744,684 21,125,730 21,475,335 22,333,454
Interfund utility taxes 2,507,213 3,437,526 2,788,083 2,948,297 3,281,816 3,892,250 4,068,667 4,260,831 4,624,951 4,540,265
Utility taxes 8,075,355 9,071,485 8,886,964 9,049,689 8,856,498 9,156,636 9,040,015 8,838,179 8,917,401 10,391,462
Excise taxes 3,477,517 2,310,076 1,389,030 1,859,738 2,141,620 2,555,850 2,888,797 4,999,517 5,057,013 4,141,146
Other taxes 2,949,430 4,607,584 4,622,138 4,644,909 4,679,333 4,429,090 4,601,925 4,722,482 5,160,215 5,253,964
Investment earnings 1,589,837 570,798 379,316 224,593 178,618 121,687 105,117 118,399 332,520 787,786
Miscellaneous 2,751,495 67,223 214,190 775,969 547,391 (4,625,627) 178,482 194,600 157,874 204,306
Transfers 427,740 170,605 1,463,444 (483,107) (513,428) (218,230) 5,294,793 (462,955) 424,173 454,436
Total governmental activities 50,204,073 48,325,465 50,166,715 50,437,943 50,821,262 48,137,603 61,790,318 61,068,488 64,251,768 69,074,772
Business-type activities:
Investment earnings 1,242,363 312,618 158,211 101,694 82,903 68,400 51,261 70,560 196,595 479,132
Miscellaneous 330,472 3,669,878 1,588,068 2,584,004 1,781,676 763,717 2,700,233 1,881,835 1,085,275 444,110
Transfers (427,740) (170,605) (1,463,444) 483,107 513,428 218,230 (5,294,793) 462,955 (424,173) (454,436)
Total business-type activities:1,145,095 3,811,891 282,835 3,168,805 2,378,007 1,050,347 (2,543,299) 2,415,350 857,697 468,806
Total primary government 51,349,168$ 52,137,356$ 50,449,550$ 53,606,748$ 53,199,269$ 49,187,950$ 59,247,019$ 63,483,838$ 65,109,465$ 69,543,578$
Change in net position Before Change in Accounting Principle
Governmental activities 94,581,085 12,702,979 11,233,105 18,000,632 10,886,295 (2,443,663) 7,741,345 18,566,419 12,769,209 12,469,931
Business-type activities 9,022,080 818,981 2,854,569 15,874,049 7,900,805 6,628,084 5,598,934 10,771,856 14,054,389 9,763,905
Total primary government 103,603,165$ 13,521,960$ 14,087,674$ 33,874,681$ 18,787,100$ 4,184,421$ 13,340,279$ 29,338,275$ 26,823,598$ 22,233,836$
Change in Accounting Principle
Governmental activities - - - - - (222,743) - (13,456,606) 2,512,557 (3,218,004)
Business-type activities - - - - - (156,715) - (6,366,678) - -
Total primary government -$ -$ -$ -$ -$ (379,458)$ -$ (19,823,284)$ 2,512,557$ (3,218,004)$
Change in net position After Change in Accounting Principle
Governmental activities 94,581,085 12,702,979 11,233,105 18,000,632 10,886,295 (2,666,406) 7,741,345 5,109,813 15,281,766 9,251,927
Business-type activities 9,022,080 818,981 2,854,569 15,874,049 7,900,805 6,471,369 5,598,934 4,405,178 14,054,389 9,763,905
Total primary government 103,603,165$ 13,521,960$ 14,087,674$ 33,874,681$ 18,787,100$ 3,804,963$ 13,340,279$ 9,514,991$ 29,336,155$ 19,015,832$
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: 2017 CAFR Statistical Section
156
2008 2009 2010 2011 (1)2012 2013 2014 2015 2016 2017
General Fund
Unreserved 13,071,091$ 13,237,851$ 15,382,354$ -$ -$ -$ -$ -$ -$ -$
Nonspendable - - - - 370,400 127 127 127 - 30,453
Assigned - - - 7,082,130 5,935,567 5,892,611 4,045,598 7,284,159 7,160,098 9,315,528
Unassigned - - - 14,193,365 17,395,933 17,751,778 20,914,093 20,267,776 24,991,081 25,414,801
Total General Fund 13,071,091 13,237,851 15,382,354 21,275,495 23,701,900 23,644,516 24,959,818 27,552,062 32,151,179 34,760,782
All other governmental funds
Reserved 1,507,565 1,538,038 1,592,378 - - - - - - -
Unreserved, Reported In:- -
Special Revenue Funds 14,463,370 15,184,058 15,486,918 - - - - - - -
Capital Projects Funds 12,990,032 10,422,360 12,589,604 - - - - - - -
Permanent Funds 144,396 153,503 132,717 - - - - - - -
Total Unreserved 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 1,666,043 1,717,134
Restricted 12,781,743 11,688,536 13,483,593 14,830,180 17,885,173 25,079,227 28,137,106
Committed 3,134,449 3,258,257 3,242,662 5,066,181 3,658,719 5,421,640 3,223,108
Assigned 3,120,372 2,388,684 4,976,833 4,725,119 4,755,182 1,226,315 1,221,511
Total All Other Governmental Funds 29,105,363$ 27,297,959$ 29,801,617$ 20,490,104$ 18,811,057$ 23,239,404$ 26,195,628$ 27,884,781$ 33,393,225$ 34,298,859$
(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: 2017 CAFR Statistical Section
157
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Revenues
Taxes 43,781,530$ 42,514,006$ 43,069,695$ 44,812,975$ 46,003,582$ 48,545,041$ 51,718,489$ 56,632,337$ 58,279,984$ 62,425,246$
Licenses and permits 1,110,722 1,326,875 1,311,916 1,769,516 2,344,643 3,041,948 2,400,662 2,074,432 3,005,125 1,906,796
Intergovernmental 8,369,888 9,616,067 9,656,529 16,174,149 20,045,299 11,854,984 9,379,699 13,620,446 12,714,010 16,187,560
Charges for services 3,784,544 3,473,199 3,073,168 2,938,815 4,006,762 3,891,776 5,717,712 7,321,295 11,563,678 7,117,774
Fines and forfeits 2,059,771 1,911,034 2,472,411 1,940,326 1,592,957 1,441,603 1,258,408 938,775 905,921 882,254
Special assessments 57,402 107,597 43,502 32,972 39,115 40,772 472,800 7,494 4,111 3,835
Investment earnings 1,363,375 484,696 386,890 237,056 200,826 144,151 135,709 117,942 279,058 672,713
Miscellaneous 1,296,349 1,142,428 3,023,589 2,322,580 871,191 621,673 1,691,274 1,890,419 1,854,450 1,966,333
Total revenues 61,823,581 60,575,902 63,037,699 70,228,389 75,104,375 69,581,948 72,774,753 82,603,140 88,606,337 91,162,511
Expenditures
General government 7,719,205 7,864,410 7,770,957 8,310,037 8,761,452 7,300,667 7,712,018 8,661,592 8,936,366 9,755,757
Public safety 26,023,912 25,762,116 24,597,986 27,399,406 24,039,435 27,146,590 27,264,294 29,164,772 30,809,069 32,084,376
Transportation 8,910,967 9,850,579 10,054,434 16,059,156 20,766,134 15,119,530 8,979,583 16,323,425 12,607,616 20,652,538
Physical environment 3,490,636 3,192,089 2,480,641 2,290,328 2,526,526 2,855,908 3,086,738 2,991,145 3,309,993 3,359,548
Economic environment 2,530,827 3,028,684 2,597,849 3,138,590 2,876,558 2,692,389 2,783,898 3,066,674 3,324,309 3,880,025
Health and human services 776,224 527,029 568,911 616,717 616,583 631,997 626,681 925,299 573,115 674,270
Culture and recreation 6,296,743 6,622,546 6,663,881 6,918,623 7,228,345 7,925,325 9,759,110 10,700,680 11,480,488 11,943,070
Capital outlay (1)4,778,334 30,338,508 8,486,382 8,597,944 4,007,018 2,746,599 3,394,886 3,580,304 6,784,343 2,096,281
Debt service:
Principal 456,655 479,661 26,683,671 1,208,512 1,219,137 2,238,181 2,704,468 1,713,940 1,737,569 1,635,126
Interest / other 264,997 296,241 1,775,746 1,761,334 2,245,858 2,709,768 2,892,281 1,801,109 1,632,786 1,590,525
Total expenditures 61,248,500 87,961,863 91,680,457 76,300,647 74,287,046 71,366,954 69,203,957 78,928,940 81,195,654 87,671,516
Excess of revenues
over (under) expenditures 575,081 (27,385,961) (28,642,758) (6,072,258) 817,329 (1,785,006) 3,570,796 3,674,200 7,410,683 3,490,995
Other financing sources (uses)
Transfers in 7,386,082 6,994,306 9,442,727 7,410,926 6,643,116 4,776,100 5,309,769 7,100,830 11,121,265 7,050,817
Transfers out (7,993,842) (6,997,801) (7,745,568) (6,242,333) (7,005,097) (4,450,925) (5,003,448) (6,668,626) (11,182,611) (7,163,278)
Capital leases 17,728 24,549,186 - - - - - - - -
Insurance recoveries - 114,607 200,642 154,200 291,210 192,898 136,585 153,041 83,737 134,003
Issuance of debt 360,000 957,278 31,172,273 - - 3,044,491 240,366 - 3,128,732 -
Issuance of refunding bond - - 2,150,000 - - - - - 38,198 -
Debt Premium - - 305,844 - - - - - - -
Payment to escrow agent - refunded bon - - (2,235,000) - - - - - (3,005,000) -
Sales of capital assets 2,698,677 127,741 - 1,331,092 800 2,593,405 17,458 21,952 - 2,700
Total other financing sources (uses)2,468,645 25,745,317 33,290,918 2,653,885 (69,971) 6,155,969 700,730 607,197 184,321 24,242
Net change in fund balances 3,043,726$ (1,640,644)$ 4,648,159$ (3,418,373)$ 747,358$ 4,370,963$ 4,271,526$ 4,281,397$ 7,595,004$ 3,515,237$
Debt service as a percentage of noncapital 1.42%1.54%37.50%5.44%6.64%8.71%10.68%5.50%5.14%4.66%
expenditures
(1)Capital outlay reported in governmental funds for 2017 are $2,096,281 plus $16,336,628 which is reported for each functional
activity with the other funds results in total capital outlay of $18,432,909 as reported on the Reconciliation of the
Statement of Revenues, 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: 2017 CAFR Statistical Section
158
Fiscal Sales Interfund
Year Property & Use Utility Utility Excise Other Total
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
2016 18,067,324 21,475,335 4,624,951 8,917,401 5,057,013 137,960 58,279,984
2017 20,976,384 22,333,454 4,540,265 10,391,462 4,141,146 42,535 62,425,246
Change
2008-2017 74.2%26.7%81.1%28.7%19.1%-29.9%42.6%
Source: City of Auburn, Finance Department
TAX REVENUES BY SOURCE, GOVERNMENT FUNDS
Last Ten Fiscal Years
SCHEDULE 5
City of Auburn, Washington
City of Auburn: 2017 CAFR Statistical Section
159
State Total Total
Fiscal Property Personal Land and Assessed Direct
Year and Other Property Building Value Rate
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
2016 156,673 958,859 7,851,588 8,967,119 2.05
2017 171,829 957,161 8,592,887 9,721,877 2.20
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
$9,000,000
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Figure 6: Assessed Value by Type
2008 -2017
State property
Personal property
Land and building
City of Auburn: 2017 CAFR Statistical Section
160
Page 1 of 2
Item 2008 (2)2009 2010 2011
Assessed and estimated actual values (1)
Estimated and actual value (in thousands)6,556,690$ 8,723,864$ 7,765,878$ 7,564,507$
Assessed value (in thousands)6,556,690 8,723,864 7,765,878 7,564,507
Ratio of assessed to actual 100%100%100%100%
Property tax rates (1)
Direct regular and special
General fund 1.48385$ 1.48678$ 1.82336$ 1.93458$
Debt service funds - - - -
Subtotal 1.48385 1.48678 1.82336 1.93458
Overlapping regular and special (1)
Auburn School District 4.40970$ 4.37709$ 5.09382$ 5.99562$
King County 1.20770 1.09772 1.28499 1.33816
State of Washington 2.13233 1.96268 2.22253 2.27990
Port of Seattle 0.22359 0.19700 0.21597 0.22366
Sound Transit - - - -
Emergency Medical Services 0.30000 0.27404 0.30000 0.30000
Hospital District 0.50854 0.47141 0.53290 0.55753
King County Library District 0.45336 0.41736 0.48526 0.56621
Valley Regional Fire Authority 1.00000 1.10995 1.17910 1.17977
King County Flood Zone 0.10000 0.91230 0.10514 0.10976
King County Ferry District 0.05500 0.05018 0.00348 0.00360
Subtotal 10.39022 10.86973 11.42319 12.55421
Total direct and overlapping 11.87407$ 12.35651$ 13.24655$ 14.48879$
Sources:
(1) King County and Pierce County Departments 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 (VRFA) 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
2008
(2)
2009 2010 2011 2012 2013 2014 2015 2016 2017
Per $1,000 of Assessed ValuationFigure 7a: Ten Years City Property Tax Rates
2008 -2017
City of Auburn: 2017 CAFR Statistical Section
161
Page 2 of 2
2012 2013 2014 2015 2016 2017
7,225,550$ 6,968,719$ 7,422,169$ 8,366,653$ 8,967,119$ 9,721,877$
7,225,550 6,968,719 7,422,169 8,366,653 8,967,119 9,721,877
100%100%100%100%100%100%
2.07527$ 2.10000$ 2.16739$ 2.08085$ 2.04719$ 2.19668$
- - - - - -
2.07527 2.10000 2.16739 2.08085 2.04719 2.19668
6.14004$ 6.62190$ 6.50262$ 6.14079$ 5.82831$ 6.74299$
1.41588 1.54051 1.51605 1.34522 1.48027 1.38294
2.42266 2.56720 2.47044 2.28514 2.16898 2.03205
0.22982 0.23324 0.21533 0.18885 0.16954 0.15334
- - - - - 0.25000
0.30000 0.30000 0.33500 0.30217 0.28235 0.26305
0.50000 0.50000 0.50000 0.50000 0.50000 0.50089
0.56992 0.56743 0.56175 0.50276 0.47714 0.45118
1.18925 1.20479 1.20294 1.18043 1.13495 1.06821
0.11616 0.13210 0.15369 0.13860 0.12980 0.11740
0.00372 0.00378 0.00349 - - -
12.88745 13.67095 13.46131 12.58396 12.17134 12.96205
14.96272$ 15.77095$ 15.62870$ 14.66481$ 14.21853$ 15.15873$
$0.00
$2.00
$4.00
$6.00
$8.00
$10.00
$12.00
$14.00
2008
(2)2009 2010 2011 2012 2013 2014 2015 2016 2017Dollars (Rate Per Thousand)Figure 7b: Property Tax Rates
Last Ten Fiscal Years
Sound Transit
Hospital District
King County Ferry District
King County Flood Zone
Valley Regional Fire Authority
King County Library District
Emergency Medical Services
Port of Seattle
State of Washington
King County
Auburn School District
City of Auburn: 2017 CAFR Statistical Section
162
Total Tax Collections
Fiscal Levy for in Subsequent Current Year
Year Fiscal Year Amount % of Levy Years Amount % of Levy Levy Balance
King County:
2008 9,550,684 9,406,398$ 98.5%144,084 9,550,482$ 100.0%202$
2009 11,671,904 11,390,684 97.6%281,064 11,671,748 100.0%156
2010 12,712,801 12,459,564 98.0%253,566 12,713,130 100.0%(329)
2011 13,080,879 12,846,996 98.2%226,333 13,073,328 99.9%7,550
2012 13,391,835 13,167,731 98.3%222,514 13,390,245 100.0%1,591
2013 12,889,371 12,673,712 98.3%219,215 12,892,926 100.0%(3,556)
2014 14,166,167 13,970,560 98.6%182,124 14,152,683 99.9%13,483
2015 15,389,766 15,226,048 98.9%146,395 15,372,443 99.9%17,323
2016 16,038,165 15,897,626 99.1%124,841 16,022,467 99.9%15,698
2017 18,662,509 18,418,844 98.7%- 18,418,844 98.7%243,665
295,783$
Pierce County:
2008 1,226,764 1,177,691$ 96.0%49,073 1,226,764$ 100.0%1$
2009 1,264,380 1,223,693 96.8%40,688 1,264,381 100.0%(0)
2010 1,489,729 1,451,377 97.4%38,352 1,489,729 100.0%1
2011 1,425,381 1,401,543 98.3%23,838 1,425,381 100.0%(0)
2012 1,495,390 1,478,230 98.9%17,038 1,495,269 100.0%121
2013 1,484,398 1,471,458 99.1%12,801 1,484,260 100.0%138
2014 1,595,567 1,587,010 99.5%8,557 1,595,567 100.0%0
2015 1,746,059 1,739,735 99.6%5,689 1,745,424 100.0%635
2016 1,867,819 1,866,161 99.9%- 1,866,161 99.9%1,658
2017 2,238,260 2,229,137 99.6%- 2,229,137 99.6%9,124
11,676$
Total current levy balance 307,459$
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%
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
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: 2017 CAFR Statistical Section
163
Percentage Percentage
of Total City of Total City
Assessed Taxable Assessed Taxable
Taxpayer Value Rank Assessed Value Value Rank Assessed Value
Boeing 280,936,249$ 1 2.89%457,846,367$ 1 6.98%
Glimcher Supermall Venture 119,511,411 2 1.23%124,696,902 2 1.90%
EProperty Tax Inc.96,597,800 3 0.99%74,665,100 4 1.14%
Puget Sound Energy 83,356,440 4 0.99%58,958,636 5 0.90%
Safeway 79,488,034 5 0.82%121,011,972 3 1.85%
Principal Life Insurance Co.71,175,200 6 0.73%- 0.00%
PPF Industrial 69,997,800 7 0.72%- 0.00%
KW Lakeland LLC 59,467,900 8 0.61%- 0.00%
AMB Institutional Alliance 47,643,100 9 0.49%- 0.00%
TIAA CREF 41,940,100 10 0.43%- 0.00%
Muckleshoot Indian Tribe - 57,234,500 6 0.87%
Invesco Realty Advisors - 53,946,000 7 0.82%
Universal Health - 47,220,355 8 0.72%
Qwest Corporation - 24,144,890 9 0.37%
Roundup Co. (Fred Meyer)- 19,217,762 10 0.29%
TOTALS 950,114,034$ 9.91%1,038,942,484$ 15.85%
Source: King County and Pierce County Departments of Assessments
Total assessed value for 2017:9,721,877,401$
Total assessed value for 2008:6,556,690,000$
2017 2008
City of Auburn, Washington
SCHEDULE 9a
PRINCIPAL TAXPAYERS-PROPERTY TAXES
Current Year and Nine Years Ago
0%
5%
10%
15%
20%
25%
2008 2017
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%
2008 2017
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
554,111$ Automotive 1 3.2%401,376$ Automotive 1 3.1%
451,249 General Retail 2 2.6%388,323 Distribution 2 2.4%
419,874 Construction 3 2.4%340,904 Automotive 3 2.2%
376,034 Automotive 4 2.1%332,807 General Retail 4 2.1%
362,387 Manufacturing 5 2.1%296,036 General Retail 5 2.0%
355,149 Automotive 6 2.0%281,174 General Retail 6 1.9%
317,615 Automotive 7 1.8%269,511 Automotive 7 1.5%
303,791 General Retail 8 1.7%253,829 Manufacturing 8 1.4%
287,314 Automotive 9 1.6%236,397 General Retail 9 1.4%
284,913 Automotive 10 1.6%207,144 General Retail 10 1.4%
3,712,437$ 21.1%3,007,501$ 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.
2017 2008
City of Auburn, Washington
SCHEDULE 9b
PRINCIPAL TAXPAYERS-SALES TAXES
Current Year and Ten Years Ago
City of Auburn: 2017 CAFR Statistical Section
164
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
RETAIL TRADE SECTOR
Automotive/gas 3,255$ 2,559$ 2,553$ 2,785$ 3,019$ 3,136$ 3,309$ 3,707$ 3,659$ 3,972$
Furniture 241 220 194 218 226 235 254 254 185 197
Electronics & appliances 242 132 121 127 145 174 237 295 221 211
Building materials 521 358 389 383 425 447 502 590 579 580
Food stores 360 352 354 331 341 335 353 368 397 369
Health & personal care 152 150 144 148 149 174 188 221 284 369
Apparel 873 781 752 754 772 889 1,009 1,080 1,136 1,119
General merchandise 872 833 801 968 967 974 955 988 1,018 993
Misc. retail trade 1,234 755 834 851 897 990 1,182 1,193 1,032 1,033
Subtotal - Retail Trade 7,750 6,140 6,142 6,566 6,943 7,354 7,989 8,695 8,512 8,843
SERVICE SECTOR
Information 489$ 457$ 979$ 481$ 396$ 446$ 487$ 526$ 630$ 662$
Finance & insurance 85 83 68 66 53 91 88 95 111 122
Real estate, rental, leasing 394 304 288 304 326 279 315 334 359 368
Professional, scientific, technical 146 200 191 175 173 184 216 195 238 239
Administrative, supply & remediation services 261 261 239 295 334 336 350 383 329 276
Educational 91 42 56 53 54 50 49 60 50 56
Healthcare & social services 98 61 37 41 115 33 66 82 92 75
Arts & entertainment 171 147 154 149 153 149 158 208 156 110
Accommodation & food service 915 827 806 839 921 979 1,067 1,159 1,218 1,276
Other services 457 485 493 482 530 507 526 603 788 728
Subtotal - Services 3,107 2,867 3,310 2,882 3,056 3,054 3,322 3,646 3,970 3,912
OTHER SECTORS
Construction 1,647$ 1,368$ 1,322$ 1,296$ 1,221$ 1,943$ 1,754$ 2,297$ 2,292$ 2,632$
Manufacturing 643 383 411 583 405 624 1,163 862 761 678
Transportation 76 31 29 77 55 46 71 66 99 89
Wholesaling 2,306 1,073 1,180 1,260 1,297 1,279 1,205 1,229 1,265 1,363
Other business 72 47 128 224 61 64 120 72 67 65
Subtotal - Other 4,744 2,902 3,071 3,439 3,038 3,956 4,312 4,525 4,485 4,827
GRAND TOTAL 15,601$ 11,909$ 12,523$ 12,887$ 13,037$ 14,364$ 15,623$ 16,866$ 16,967$ 17,582$
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 0.25%0.25%0.25%0.25%0.25%0.25%0.25%0.25%0.25%0.25%
Regional Transit Authority 0.40%0.90%0.90%0.90%0.90%0.90%0.90%0.90%0.90%1.40%
Metro 0.90%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 9.00%9.50%9.50%9.50%9.50%9.50%9.50%9.50%9.50%10.00%
Special sales tax rates
Restaurants-for stadium funding (1)0.50%0.50%0.50%0.50%0.00%0.00%0.00%0.00%0.00%0.00%
Motor vehicles 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
City of Auburn: 2017 CAFR Statistical Section
165
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
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
2016 54,245,944 - 476,635 28,545,000 11,412,188 94,679,767 4.48%1,228.65
2017 50,766,661 - 382,914 28,161,699 10,394,433 89,705,707 4.07%1,136.09
Source: City of Auburn, Finance Department
(1) Personal income data provided by US Census Bureau estimate for 2013, 2012, 2011; Hebert Research for 2004, 2005 and 2010 only;
other years are city estimates
City of Auburn, Washington
Last Ten Fiscal Years
Governmental Activities Business-type Activities
RATIOS OF OUTSTANDING DEBT BY TYPE
SCHEDULE 11
City of Auburn: 2017 CAFR Statistical Section
166
Parks and Utility Total
Councilmanic Excess Levy Open Spaces Purpose Capacity
December 31, 2017 - Total Assessed Value:
10,559,150,607$
2.5% of Assessed Value -$ 263,978,765$ 263,978,765$ 263,978,765$ 791,936,295$
1.5% of Assessed Value 158,387,259 (158,387,259) - - -
Statutory Debt Limit 158,387,259 105,591,506 263,978,765 263,978,765 791,936,295
Debt Outstanding 54,208,225 - - - 54,208,225
Net Debt Outstanding 54,208,225 - - - 54,208,225
Remaining Debt Capacity 104,179,034$ 105,591,506$ 263,978,765$ 263,978,765$ 737,728,070$
General Capacity Special Purpose Capacity
City of Auburn, Washington
SCHEDULE 12
COMPUTATION OF LEGAL DEBT MARGIN
As of December 31, 2017
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Debt Limit 653,979$ 577,669$ 565,822$ 539,989$ 518,188$ 546,602$ 617,872$ 661,996$ 716,628$ 791,936$
Total net debt
applicable to limit 10,771 62,671 66,868 65,364 63,815 64,047 61,892 59,409 57,152 54,208
Legal debt margin 643,208$ 514,998$ 498,954$ 474,625$ 454,372$ 482,554$ 555,980$ 602,588$ 659,476$ 737,728$
Total net debt
applicable to the limit
as a percentage of debt limit 1.65%10.85%11.82%12.10%12.32%11.72%10.02%8.97%7.98%6.85%
City of Auburn, Washington
SCHEDULE 13
LEGAL DEBT MARGIN RATIOS
Last Ten Fiscal Years
(Expressed in Thousands)
City of Auburn: 2017 CAFR Statistical Section
167
Net Debt Percent Bonded Amount
Outstanding Applicable (3)Applicable
Net direct debt:
Net direct debt - City of Auburn (1)54,478,798$
Estimated net overlapping debt: (2)
King County 736,346,000$ 1.82%13,401,497$
Port of Seattle 388,360,000 1.82%7,068,152
School District No. 210 189,527,698 2.79%5,287,823
School District No. 408 216,440,000 78.34%169,559,096
School District No. 415 102,559,482 1.27%1,302,505
Rural Library District 89,230,000 3.18%2,837,514
Valley Regional Fire Authority 12,570,000 90.21%11,339,397
Pierce County 124,025,000 1.00%1,240,250
Total estimated net overlapping debt 212,036,234
Total direct and overlapping debt 266,515,032$
Sources:
(1) Includes both bonded and non bonded debt related to government activities. From Sch. 9 Changes in LT Liabilities
(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 valuation of property subject to taxation in the City of Auburn.
COMPUTATION OF NET DIRECT AND ESTIMATED OVERLAPPING DEBT
As of December 31, 2017
City of Auburn, Washington
SCHEDULE 14
City of Auburn: 2017 CAFR Statistical Section
168
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
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
2016 77,060 8,967,119 54,245,944 - 54,246 0.60%704
2017 78,960 9,721,877 50,766,661 - 50,767 0.52%643
Notes:
(1) From Schedule 6
(2) General Obligation Debt related to government activities, from Schedule 11.
(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
City of Auburn: 2017 CAFR Statistical Section
169
Direct(2)Debt Service Requirements
Gross (1)Operating Net Revenue Times
Year Revenue Expense Available Principal Interest Total (3)Coverage
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
2016 50,385,548 38,614,719 11,770,829 2,326,117 1,523,830 3,849,947 3.06
2017 51,771,171 38,726,814 13,044,357 2,422,369 1,494,706 3,917,075 3.33
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
City of Auburn: 2017 CAFR Statistical Section
170
Item 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
School enrollment (1)14,703 14,589 14,482 14,363 14,596 14,971 15,277 15,663 15,945 16,344
Rate of unemployment (2)5.5%9.5%9.6%8.7%7.5%5.9%5.3%4.8%4.4%4.3%
Population (3)67,005 67,485 70,180 70,705 71,240 73,235 74,630 75,545 77,060 78,960
Personal income (thousands of dollars) (4)2,024,087$ 1,989,660$ 1,900,474$ 1,901,540$ 1,871,973$ 1,917,219$ 2,000,606$ 2,033,520$ 2,111,829$ 2,206,142$
Per capita personal income (4)30,208$ 29,483$ 27,080$ 26,894$ 26,277$ 26,179$ 26,807$ 26,918$ 27,405$ 27,940$
Housing units (5)
One unit 14,186 14,235 14,641 14,775 14,957 15,393 15,804 16,042 16,167 16,373
Two or more 10,375 10,391 10,560 10,592 10,631 10,841 10,841 10,847 10,854 11,110
Mobile home or special 2,761 2,782 2,633 2,635 2,618 2,630 2,631 2,637 2,630 2,675
Total housing units 27,322 27,408 27,834 28,002 28,206 28,864 29,276 29,526 29,651 30,158
Sources:
(1) Auburn School District No. 408
(2) Bureau of Labor Statistics (BLS)
(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
City of Auburn: 2017 CAFR Statistical Section
171
Percentage Percentage
of Total City of Total City
Employer Product/service Employees Rank Employment Employees Rank Employment
The Boeing Company Aerospace 5,750 1 27.2%5,000 1 32.8%
Muckleshoot Tribal Enterprises Gaming 3,306 2 15.6%2,200 2 14.4%
The Outlet Collection*Retail 3,150 3 14.9%1,700 4 11.1%
Auburn School District Education 2,886 4 13.6%1,800 3 11.8%
Multicare Auburn Medical Center**Hospital 1,638 5 7.7%805 7 5.3%
Green River Community College Education 1,202 6 5.7%1,067 5 7.0%
Emerald Downs Racetrack Horse racing 1,196 7 5.6%678 8 4.4%
Safeway Distribution Center Distribution Center 847 8 4.0%900 6 5.9%
Zones, Inc.Technology reseller 645 9 3.0%500 10 3.3%
Skills, Inc Manufacturing 550 10 2.6%0.0%
Social Security Administration Gov't / public offices 0.0%600 9 3.9%
TOTALS 21,170 100.0%15,250 100.0%
Sources: WA Employment Security Department
2017 - City of Auburn, Economic Development
2008 - City of Auburn
* Previously The Super Mall
**Previously Auburn Regional Medical Center.
2017 2008
City of Auburn, Washington
SCHEDULE 18
MAJOR EMPLOYERS
Current Year and Nine Years Ago
0%
20%
40%
60%
80%
100%
2008 2017
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: 2017 CAFR Statistical Section
172
Department 2008 2009 2010(2)2011 2012 2013 2014 2015 2016 2017
Mayor 12 12 10 10 7 7 3 3 3 3
Administration (4)- - - - - - 8 8 10 11
Human Resources 18 9 7 7 8 8 8 8 9 8
Finance 25 25 21 22 22 23 23 22 22 22
Municipal Court (3)21 21 17 19 - - - - - -
Legal 16 16 13 13 13 13 14 14 14 15
Community Development (5)34 34 24 24 28 29 25 26 26 26
Police 152 152 131 118 122 125 126 129 131 137
Public Works 63 63 43 43 43 48 49 50 53 54
Parks, Arts and Recreation (6)40 40 35 36 36 36 45 45 47 47
Street 14 14 12 19 19 19 19 19 19 20
Water 20 20 22 22 22 22 24 23 23 23
Sewer 11 11 11 12 11 10 10 10 10 10
Storm Drainage 16 17 16 10 10 10 10 10 10 10
Solid Waste 2 2 2 2 2 2 2 2 2 2
Cemetery 7 7 7 7 7 5 5 5 6 6
Golf Course (6)9 9 8 8 8 8 - - - -
Facilities (1)- 10 10 10 9 9 9 10 10 10
Multi-Media (7)- - - - - - 4 4 4 4
Innovation & Technology 18 18 14 14 18 18 15 16 16 17
Equipment Rental 10 11 6 6 7 10 12 12 12 12
TOTAL 488 490 408 401 391 402 411 416 427 437
Source: City of Auburn Finance Department
(1)Facilities Division was previously included in the Human Resources Department prior to the creation of a new Internal
Service fund in 2009.
(2)Due to the economic downturn, the City eliminated 82.5 of the total 490 positions in 2010.
(3)In 2012, the City contracted out the Municipal Court to the King County District Court - resulting in a reduction of
19 positions.
(4)In 2014 the Administration Department was created and consisted 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, and Human Services and Community Programs.
(5)In 2014 the Planning Department was renamed Community Development.
(6)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.
(7)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
City of Auburn: 2017 CAFR Statistical Section
173
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Planning
Commercial permits 95 112 18 38 24 32 64 52 79 37
Commercial construction value ($1,000's)22,887$ 58,896$ 8,386$ 10,904$ 13,219$ 28,357$ 35,786$ 36,289$ 74,887$ 48,157$
Residential permits 165 85 184 229 461 464 374 253 242 178
Residential construction value ($1,000's)27,048$ 15,739$ 36,602$ 43,574$ 98,212$ 96,248$ 83,007$ 62,043$ 68,997$ 54,132$
Police
Crimes:
Arson 24 19 23 29 27 14 32 - - 19
Aggravated Assault 154 163 137 148 110 145 156 186 179 198
Burglary 630 590 725 757 983 651 810 851 727 722
DUI 194 193 192 214 171 138 126 188 158 194
Homicide - 3 3 2 6 5 1 8 6 3
Narcotics 439 440 442 396 383 279 458 511 458 742
Rape 14 13 15 23 23 26 31 31 36 49
Robbery 102 92 79 107 110 109 104 91 98 117
Theft 2,343 2,362 2,533 2,435 2,415 2,583 3,192 2,728 2,235 2,169
Theft - motor vehicle 639 370 569 600 588 678 630 996 1,159 969
Traffic:
Non-criminal 6,794 7,788 7,182 5,400 4,922 5,378 6,520 5,489 5,706 11,483
Parking 3,740 4,026 4,648 3,383 1,946 2,052 5,238 3,737 3,822 3,777
Parks and Recreation
Athletic teams 416 428 439 429 388 382 358 321 328 306
Recreation activities 2,056 2,335 2,281 3,462 3,833 3,568 3,557 3,511 2,435 3,389
Golf course rounds 54,993 50,572 49,950 45,484 45,704 47,480 47,697 52,718 48,803 47,001
Senior center visits 36,805 41,032 41,350 41,802 40,704 36,991 40,715 38,485 36,636 35,454
Cultural activities 84 90 101 127 146 180 202 204 203 214
Museum audience served 11,921 11,835 12,570 14,119 15,397 14,163 13,968 13,535 14,380 13,570
Cemetery placements 289 232 228 273 259 226 250 237 281 264
Sources: Various city departments
City of Auburn, Washington
SCHEDULE 20
OPERATING INDICATORS BY DEPARTMENT
Last Ten Fiscal Years
City of Auburn: 2017 CAFR Statistical Section
174
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
General City
Total area (square miles)30.0 30.1 30.1 30.2 30.2 30.2 30.2 30.2 30.2 30.2
Public Works
Miles of streets 272 276 283 285 249 245 244 254 238 238
Number of streetlights 5,074 5,392 5,523 5,581 6,101 6,110 6,211 6,362 6,552 6,581
Number of traffic signals 83 85 86 89 93 94 94 95 95 95
Utilities
Number of services 13,050 13,076 13,372 13,334 13,863 14,106 14,573 14,787 14,872 14,746
Miles of water lines 283 293 297 304 314 315 316 320 321 323
Miles of sanitary sewer lines 205 207 213 213 219 220 220 223 224 225
Miles of storm lines 197 204 226 247 252 263 282 294 319 337
Number of fire hydrants 2,969 2,998 3,044 3,277 3,308 3,329 3,559 3,580 3,577 3,595
Public Safety
Number of police stations 2 2 2 2 2 2 2 2 3 3
Parks and Recreation
Total park acreage (1)598 602 602 602 630 635 972 977 988.7 986
Number of softball/baseball fields 19 18 18 18 17 17 18 18 18 18
Number of soccer/football fields 3 3 3 3 3 4 4 4 4 4
Number of playgrounds 32 33 35 35 35 36 28 31 31 30
Sources: Various city departments
(1) The increase in total park acreage since 2013 is due to property inventory update in anticipation of the Parks Recreation & 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
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Water Customers by Class
Single Family Residential 10,493 10,535 10,564 10,704 11,224 11,476 11,822 11,973 12,054 12,010
Multifamily 961 985 991 991 989 986 1,000 1,003 1,002 1,009
Commercial 1,098 1,083 1,100 1,095 1,098 1,094 1,146 1,190 1,186 1,158
Mfr./Industrial 39 38 38 38 37 37 38 38 37 2
Schools 39 37 37 37 36 37 37 37 38 37
City Accounts 30 27 29 28 26 28 30 30 31 31
Irrigation 383 363 401 434 446 441 493 509 517 492
Total Retail Water Customers 13,043 13,068 13,160 13,327 13,856 14,099 14,566 14,780 14,865 14,739
Wholesale Water Customers 7 8 8 7 7 7 7 7 7 7
Sewer Customers by Class
Single Family Residential 10,698 10,711 10,918 11,183 11,522 11,982 12,631 12,890 13,091 13,124
Non-single Family Residential 2,604 2,605 2,612 2,616 2,653 2,659 2,713 2,728 2,725 2,724
Total Sewer Customers 13,302 13,316 13,530 13,799 14,175 14,641 15,344 15,618 15,816 15,848
Storm Customers by Class
Single Family Residential 14,374 14,441 14,495 14,846 15,168 15,618 16,013 16,222 16,200 16,566
Non-single Family Residential 1,623 1,650 1,769 1,653 1,661 1,640 1,670 1,679 1,913 1,671
Total Storm Customers 15,997 16,091 16,264 16,499 16,829 17,258 17,683 17,901 18,113 18,237
Sources: City of Auburn - Utility Billing
City of Auburn, Washington
SCHEDULE 22
NUMBER OF UTILITY CUSTOMERS BY CUSTOMER CLASS
Last Ten Fiscal Years