HomeMy WebLinkAbout2018 CAFR2018 COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE YEAR ENDED DECEMBER 31, 2018
CITY OF AUBURN
WASHINGTON
COMPREHENSIVE ANNUAL
FINANCIAL REPORT
Fiscal Year January 1, 2018 through December 31, 2018
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Prepared by
City of Auburn Finance Department
Shelley Coleman, Finance Director
City of Auburn: 2018 CAFR Table of Contents
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COMPREHENSIVE ANNUAL FINANCIAL REPORT
For the Year Ended December 31, 2018
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
Schedule of Changes in Total Pension Liability and Related Ratios ........................................................106
Schedule of Changes in Total OPEB Liability and Related Ratios ............................................................ 107
City of Auburn: 2018 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: 2018 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: 2018 CAFR Table of Contents
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1
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 Steve Gross
Human Resources / Risk & Property Mgmt. Director Candis Martinson
Innovation & Technology Director David Travis
Parks, Arts and Recreation Director Daryl Faber
Community Development Director Jeff Tate
Public Works Director Ingrid Gaub
Police Chief William Pierson
Administration Director Dana Hinman
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Citizens
City Council Mayor
Nancy Backus
Director of Human
Resources & Risk/Property
Management
Candis Martinson
City Attorney
Steve Gross
Police Chief
William Pierson
Director of Innovation
and Technology
David Travis
Director of Administration
Dana Hinman
Community Development
Director
Jeff Tate
Parks /Art and Recreation
Director
Daryl Faber
Finance Director
Shelley Coleman
Public Works
Director
Ingrid Gaub
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June 20, 2019
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, 2018.
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, 2018. This transmittal letter provides an overview of the report and the financial
condition of the City. It also provides insight into the history of the City and the economic conditions affecting it, and
describes the systems and controls employed by the Finance department.
The Comprehensive Annual Financial Report has several significant uses. First, it provides a general overview of the
City’s finances to the general public and taxpayers. Second, it is referenced by bond buyers and rating agencies to
evaluate the City’s fiscal stability and creditworthiness. Finally, the CAFR is a series of financial statements that have
been audited by the State Auditor’s Office and provides assurances that assets are safeguarded and funds are
expended as they were legally appropriated in the biennial budget.
I. INTRODUCTION
A. Management Representation
The Auburn Finance Department prepared the report and accepts complete responsibility for the accuracy,
completeness, and fairness of presentation of the information included. The data is believed to be accurate in all
material respects, and it is believed that all significant information necessary for an understanding of the affairs and
financial condition of the City has been disclosed. The report has been prepared in conformance with generally
accepted accounting principles and in conformance with financial reporting standards issued by the Governmental
Accounting Standards Board (GASB).
City management has developed and evaluated a comprehensive internal control structure that is designed to protect
the City’s assets from loss, theft, or misuse and to compile sufficient reliable information for the preparation of the
City’s financial statements in conformity with generally accepted accounting principles. Because the cost of internal
controls should not outweigh the benefits, the City’s internal control structure is designed to provide reasonable,
rather than absolute, assurance that the financial statements will be free from material misstatement. As
management, we attest that, to the best of our knowledge and belief, this financial report is complete and reliable in
all material aspects.
City of Auburn: 2018 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 2017
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 80,615 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 organizations provide services to other owner/member
governments and other non-owner/member governments as well through interlocal agreements.
City of Auburn: 2018 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 2018, Auburn was providing 52,300 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
1,700 people, and is currently investing over $25 million 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 315 commercial building permits representing about $72
million in construction investments, including projects such as The Villas and Reserve (597 unit mixed use
development), the Auburn Town Center (6-story, 226 unit mixed use building), Legacy Plaza (7-story, 167 unit mixed
use development), North Auburn Logistics (245,000 square foot industrial building), Hudson Distribution Center
(288,000 square foot industrial building), Dick Scobee Elementary School replacement, Boeing Workforce Readiness
Center, Olympic Middle School reconstruction, and several new area hotels as well as an investment of approximately
$25 million by MultiCare in power and utilities infrastructure to support the current and future hospital campuses.
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 2018. 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 $18.2 million in 2018. 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, although this declined to
$1.7 million in 2018 as it was reduced dollar-for-dollar by voluntary payments for internet sales taxes. 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
$489,000 (2.8%) from 2017. The portion allocated to the General Fund, $15.9 million, constitutes about 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: 2018 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 has – in recent years – utilized 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 2018 and established rates to fund operating and capital needs through 2022. This
includes the possible issuance of new revenue bonds in 2019 to support significant new utility construction
projects. Utility rates will continue to be reviewed as part of the comprehensive planning process.
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 and street improvements that include 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 1990s. 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: 2018 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 economies of scale in investing to
smaller- and medium-sized cities in the State. The City uses this service for all funds not invested in longer-term
securities. The pool operates under the same legal restrictions that apply to all municipalities in the State and,
consequently, uses the same instruments as listed above. The State also takes delivery of all investment transactions.
The City has adopted a comprehensive investment policy statement to guide City investment practices. These policies
are closely patterned after the recommendations in Investing Public Funds published by the Government Finance
Officers Association (GFOA). Investments are restricted to less than three years in order to maintain liquidity on all
investments in all funds, yet enable the City to take advantage of the yield curve. Fiduciary funds, which involve long-
term reserves and require minimal liquidity, are invested for longer time periods. The City undertakes repurchase
agreements only with financial institutions that offer the City full protection in the event of default, by providing the
delivery of the underlying security to the City.
B. Risk Management
The City participates in the Washington Cities’ Insurance Authority (an insurance pool of 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: 2018 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 2018 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 2018. 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, 2017. This was the thirtieth consecutive year that the
City has achieved this prestigious award. In order to be awarded a Certificate of Achievement, a government
must publish an easily readable and efficiently organized comprehensive annual financial report. This report
must satisfy both generally accepted accounting principles and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. We believe that our current Comprehensive
Annual Financial Report continues to meet the Certificate of Achievement Program’s requirements and we
are submitting it to the GFOA to determine its eligibility for another certificate.
Also, in 2017, the City received the Government Finance Officers Association Distinguished Budget
Presentation award for its 2017-2018 biennial budget.
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, 2017
P �.' " . ·...
.
·· ·· .... ' ·
.. · .· .. ·
I: ._' ..
Executive Director/CEO
9
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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 20, 2019
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, as of
and for the year ended December 31, 2018, 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 Responsibility 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, 2018, and the
respective changes in financial position and, where applicable, cash flows thereof, and the respective
budgetary comparison for the General and Arterial Street funds for the year then ended in accordance
with accounting principles generally accepted in the United States of America.
Matters of Emphasis
As discussed in Note 1 to the financial statements, in 2018, the City adopted new accounting guidance,
Governmental Accounting Standards Board Statement No. 75, Accounting and Financial Reporting for
Postemployment Benefits Other Than Pensions. 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 combining and individual fund financial statements
and schedules are presented for the purposes of additional analysis and are 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.
Our audit was conducted for the sole purpose of forming opinions on the financial statements that
collectively comprise the City’s basic financial statements as a whole. The Introductory and Statistical
Sections are presented for purposes of additional analysis and are 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 20, 2019,
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 reportin g 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: 2018 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 liabilities plus
deferred inflows – equals $706.7 million, an increase of $11.5 million or 1.6%. Of this, a total of $583.3 million, or 82.5%
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 $3.3 million of net position is restricted for purposes of
endowment and debt service. Of the remaining $120.1 million of net position, $28.6 million is legally restricted,
restricted by City policy for specific purposes, or is restricted for use by the City’s utilities, and $91.5 million is
unrestricted.
• The net increase in government-wide net position during 2018 was $11.5 million. Of this amount, $4.3 million was
directly related to the increase in City-owned net investment in capital assets, restricted net position increased by
$0.2 million, and unrestricted net position increased by $7.1 million.
• Business-type net position increased by $9.9 million to $259.1 million during 2018 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 $70.0 million. Of this amount, $24.6 million, or 35.2%, is unassigned
and available to fund ongoing activities. Compared to 2017, total governmental fund balances increased by $0.9
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
$10.4 million. Total long-term liabilities, including bonds and loans, totaled $119.5 million at December 31, 2018. The
ending long-term liabilities is a decrease of $3.2 million from 2017 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: 2018 CAFR Management’s Discussion and Analysis
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Other City Highlights:
Parks, Arts and Recreation
• Completed a major capital improvement project at Les Gove Park, including a new restroom, large event plaza, trail
lighting, and emergency phones with security cameras for enhanced safety.
• Added a new synthetic mini soccer pitch at Brannan Park
• Installed a new playground at Lakeland Hills Park. The playground was named in memory of Avery Huffman, a little
girl with courage, grit, fight, strength and toughness who lost her battle with cancer in 2016.
• Received a $500,000 Aquatic Lands Enhancement Account water access grant from the Washington State
Recreation Conservation Office to support construction of the 14.74 acre park at 104th Ave along the Green River.
• Added two additional pickleball courts to Game Farm Park as well as improvements to the existing sports courts.
• Performed a restoration of the windows at the Auburn Arts & Culture Center to historical standards as required by
the Landmark designation of the building. Also, began Phase I of the building restoration.
Community Development Services
• Transitioned from a permit processing system that required paper submittals to a system that accommodated
electronic submittal and review.
• Processed more than 2,600 permits, representing nearly $100,000,000 in construction investments, and processed
approximately 1,000 business licenses, completed 4,000 building inspections, completed more than 1,300 code
enforcement cases, and participated in more than 52,000 customer service interactions.
• Through the City’s façade improvement program, contributed $120,800 in financial assistant to owners of
downtown buildings seeking to make cosmetic improvements to their buildings and/or businesses.
• Notable, active projects in review and/or under construction during the year:
o The Villas and Reserve (597 unit mixed use complex)
o Auburn Town Center (6 story 226 unit mixed use building)
o Legacy Plaza (7 story 167 units mixed use building)
o North Auburn Logistics (245,000 square foot industrial building)
o Hudson Distribution (288,000 square foot industrial building)
o Dick Scobee Elementary School replacement
o Wyndham Hotel (63 rooms)
o Olympic Middle School reconstruction
o Boeing Workforce Readiness Center
o Tru by Hilton Hotel (90 rooms)
o Big Foot Java mixed use building (30 rooms)
o Holiday Inn Express Hotel (120 rooms)
Engineering Services
• Managed street preservation programs that resulted in average pavement condition index (PCI) for City local streets
to increase from 77 at the end of 2017 to 78 at the end of 2018 and for City collectors and arterials, the average PCI
of 63 was held steady between 2017 and 2018.
• Coordinated and provided oversight of WSDOT’s paving of Auburn Way South from SR-18 to M Street SE.
• Re-paved 15th St NE/NW and S 277th Street from SR-167 to Auburn Way North. Also re-paved Harvey Road and other
roads throughout the City.
• Completed construction of the City’s first roundabout in the valley at 21st St NE and I St NE.
City of Auburn: 2018 CAFR Management’s Discussion and Analysis
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• Completed construction of a new traffic signal at the intersection of 37th Street SE and A Street SE and replaced an
existing traffic signal at the intersection of Main Street and C Street SW.
• Constructed 25 capital projects including 30 lane miles of replaced pavement, 7,000 feet of new water main, 11,500
feet of new storm drain pipe, 400 feet of new sewer main, and 14,000 feet of new or replaced sidewalks.
• Completed the required annual reporting for the United States Environmental Protection Agency National Pollutant
Discharge Elimination System (NPDES) Phase II permit requirements.
Maintenance & Operations Services
• Refreshed all striping on public roads and continued to refresh thermoplastic pavement markings and legends as
needed (overseen by Engineering and completed through contracting with Pierce and King Counties).
• Continued with cross training maintenance staff, enabling a more continuous use of equipment such as closed-
circuit television equipment and the jet/vactor truck.
• Completed rehabilitation work at the A ST ditch, including installation of 300 feet of drainage pipe.
• Completed the final phase of the AMI meter project, giving us the ability to notify customers of potential leaks in
their water service well before the next billing cycle.
Airport Services
• Completed the runway length justification for the Airport Runway Enhancement project and began the design
process.
• Completed the transition from contract management services to in-house management of the Airport, including the
fueling services.
• Completed the Competitive Market Assessment and Long Term Rate Study for the Airport.
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 section
of the management’s discussion and analysis is intended to introduce and explain the basic financial statements.
Government-wide Financial Statements
The government-wide financial statements are designed to be corporate-like in that all governmental and business-type
activities are consolidated into columns which add to a total for the City. The focus of the Statement of Net Position is
designed to be similar to bottom-line results for the City and its governmental and business-type activities. This statement
combines and consolidates governmental funds’ current financial resources (short-term spendable resources) with capital
assets, deferred outflows of resources, long-term obligations and deferred inflows of resources. Over time, increases or
decreases in net position may be one indicator of improvement or deterioration in the City’s overall financial health.
City of Auburn: 2018 CAFR Management’s Discussion and Analysis
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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 each function either supports itself or relies on taxes and other general
funding sources for support. All activity on this statement is reported on the accrual basis of accounting, requiring that
revenues are reported when they are earned and expenses are reported when they are incurred, regardless of when cash is
received or disbursed.
Governmental activities of the City include general government (executive, finance, legal, human resources, and contracted
court), security (police), physical environment, economic environment, transportation, health and human services, and
culture and recreation. The City’s business-type activities include water, sanitary sewer, storm water and solid waste utilities
as well as the operations of an airport and cemetery. Governmental activities are primarily supported by taxes, charges for
services, and grants, while business-type activities are self-supporting through user fees and charges.
Fund Financial Statements
The Fund Financial Statements are the traditional reporting format for governments. A fund is a fiscal and accounting entity
with a self-balancing set of accounts used to account for specific activities or meet certain objectives. While the government-
wide statements present the City’s finances based on the type of activity (general government vs. business type), the Fund
Financial Statements are presented by fund type, such as the general fund, special revenue funds and proprietary funds, with
the focus on major funds.
Governmental Funds are used to account for essentially the same functions that are reported as governmental activities in
the government-wide financial statements. The government major fund is presented utilizing the “sources and uses of liquid
resources” basis. This is the manner in which the budget is typically developed. The basis of accounting is different between
the governmental fund statements and the government-wide financial statements. The governmental fund statements
focus on the near-term revenues/financial resources and expenditures while the government-wide financial statements
include both near-term and long-term revenues/financial resources and expenses. The information in the governmental fund
statements can be used to evaluate the City’s near-term financing 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 statements later in this report. The City
maintains budgetary control over its operating funds through the adoption of a biennial budget. Budgets are adopted at
the fund level according to state law. Budgetary comparison statements are presented for the general and arterial street
funds as part of the basic financial statements. Other budgetary comparison statements are included following the other
government funds’ combining statements.
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Proprietary funds are used by governments to account for their business-type activities and use the same basis of accounting
utilized in private industry. Business-type activities provide specific goods or services to a group of customers that are paid
for by fees charged to those customers. There is a direct relationship between the fees paid and the services rendered.
The City has two types of proprietary funds: enterprise funds and internal service funds. Enterprise funds are used to account
for goods and services provided to citizens, while internal service funds are used to account for goods and services provided
internally to various City departments.
Enterprise funds report the same functions presented as business-type activities in the government-wide statements, but in
greater detail. The City’s enterprise fund statements provide information on the City’s four utilities (water, sanitary sewer,
storm water, and solid waste) as well as the City-owned airport and cemetery.
Internal service funds are an essential accounting tool used to accumulate and allocate costs internally among the City’s
various functions. The City uses internal service funds to account for its fleet of vehicles, 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”.
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 2017 to 2018 show an increase in total
net position of $11.5 million or 1.7%. Following is a condensed version of the government-wide statement of net position with
a comparison to 2017:
City of Auburn: 2018 CAFR Management’s Discussion and Analysis
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The largest component of the City’s net position, $583.3 million, or 82.5% is its net investment in capital assets. These
capital assets, such as streets, parks, trails, and vehicles and equipment related to police and public works, are used to
provide services to the citizens. As a result, these assets are not for sale, and are therefore not available to fund current
and future City obligations. The City elected the GASB 34 reporting option to include all general infrastructure of the City
acquired or substantially renovated since 1980.
The largest component of unrestricted net position, $49.1 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. The second largest component of unrestricted net position, $42.4 million,
may be used for functions such as public safety employee salaries and supplies, parks and road maintenance, and other
general governmental services.
Restricted governmental fund net position is $30.0 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 $4.3
million.
Changes in Net Position
The change in net position represents the increase or decrease in City net position resulting from its various activities.
Following is a condensed version of the City’s changes in net position. The table shows the revenues, expenses and related
changes in net position for both governmental-type and business-type activities:
As of 12/31/18 As of 12/31/17 As of 12/31/18 As of 12/31/17 As of 12/31/18 As of 12/31/17
Current and other assets 136,134,446$ 130,119,043$ 64,189,589$ 58,080,763$ 200,324,035$ 188,199,806$
Capital assets, net of
accumulated depreciation 405,025,365 404,922,880 237,685,694 237,873,905 642,711,059 642,796,785
Total assets 541,159,811 535,041,923 301,875,283 295,954,668 843,035,094 830,996,591
Deferred Outflows of Resources 2,221,501 2,241,938 805,391 928,489 3,026,892 3,170,427
Long-term liabilities 78,232,970 76,954,091 34,019,802 38,315,101 112,252,772 115,269,192
Other liabilities 10,854,971 10,713,381 7,957,619 8,478,481 18,812,590 19,191,862
Total liabilities 89,087,941 87,667,472 41,977,421 46,793,582 131,065,362 134,461,054
Deferred Inflows of Resources 6,705,141 3,589,485 1,553,327 927,497 8,258,468 4,516,982
Net position
Net investment in capital assets 375,208,981 373,368,906 208,136,620 205,677,614 583,345,601 579,046,520
Restricted for:
Capital Projects 27,418,887 27,407,299 - - 27,418,887 27,407,299
Nonexpendable Permanent Endowment 1,775,453 1,717,134 - - 1,775,453 1,717,134
Debt Service 5,386 9,686 1,497,309 1,437,567 1,502,695 1,447,253
Tourist Promotion 197,675 200,371 - - 197,675 200,371
Drug Investigation & Enforce 448,351 381,136 - - 448,351 381,136
Comm Dev Block Grant 42,904 44,904 - - 42,904 44,904
Central Business Distr Dev 113,295 93,710 - - 113,295 93,710
Rate Stabilization - - 427,257 419,403 427,257 419,403
Unrestricted 42,377,297 42,803,759 49,088,740 41,627,494 91,466,037 84,431,253
Total net position 447,588,228$ 446,026,905 259,149,926$ 249,162,078$ 706,738,154$ 695,188,983$
Governmental Activities Business-type Activities Total
STATEMENT OF NET POSITION
Comparative Analysis of 2018 and 2017
City of Auburn: 2018 CAFR Management’s Discussion and Analysis
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Governmental activities contributed $11.0 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.
General tax revenues decreased by 0.1% to $67.5 million between 2017 and 2018, compared to an increase of 6.8% between
2016 and 2017:
• Property tax revenue increased $0.6 million or 2.8%.
• Sales tax collections decreased $0.3 million or 1.5%, reflecting a slowing in the economy.
• Utility and admission tax revenue decreased by $0.5 million or 5.3%.
2018 2017 2018 2017 2018 2017
Revenues:
Program revenues
Charges for services 11,050,781$ 11,790,334$ 69,723,671$ 68,220,200$ 80,774,452$ 80,010,534$
Operating grants and contributions 2,831,794 2,257,646 106,286 106,286 2,938,080 2,363,932
Capital grants and contributions 9,065,857 13,229,502 4,566,838 4,363,568 13,632,695 17,593,071
General revenues
Property taxes 21,546,734 20,967,953 - - 21,546,734 20,967,953
Sales taxes 21,996,115 22,333,454 - - 21,996,115 22,333,454
Interfund utility taxes 4,552,505 4,540,265 - - 4,552,505 4,540,265
Admission & utility taxes 9,841,620 10,391,462 - - 9,841,620 10,391,462
Excise taxes 4,393,134 4,141,146 - - 4,393,134 4,141,146
Other taxes 5,213,217 5,253,964 - - 5,213,217 5,253,964
Investment earnings 1,657,481 787,786 989,564 479,132 2,647,045 1,266,918
Miscellaneous revenue 428,582 204,306 602,528 444,110 1,031,110 648,415
Total revenues 92,577,820 95,897,818 75,988,887 73,613,296 168,566,707 169,511,114
Expenses:
General government 10,191,329 10,384,647 - - 10,191,329 10,384,647
Public safety 30,337,791 32,746,406 - - 30,337,791 32,746,406
Transportation 17,620,176 17,904,352 - - 17,620,176 17,904,352
Physical environment 3,794,576 3,217,885 - - 3,794,576 3,217,885
Culture and recreation 13,665,612 13,539,098 - - 13,665,612 13,539,098
Economic environment 4,140,104 3,859,863 - - 4,140,104 3,859,863
Health and human services 787,535 674,270 - - 787,535 674,270
Interest on long-term debt 1,502,236 1,555,803 - - 1,502,236 1,555,803
Water - - 12,499,974 12,408,008 12,499,974 12,408,008
Sanitary sewer - - 26,213,221 25,360,718 26,213,221 25,360,718
Storm drainage - - 9,374,373 8,979,969 9,374,373 8,979,969
Solid waste - - 15,311,654 14,539,703 15,311,654 14,539,703
Other business-type activities - - 2,186,842 2,106,557 2,186,842 2,106,557
Total expenses 82,039,359 83,882,324 65,586,064 63,394,955 147,625,423 147,277,279
Increase in net position before transfers 10,538,461 12,015,495 10,402,823 10,218,341 20,941,284 22,233,836
Transfers 414,973 454,436 (414,975) (454,436) (2) -
Change in net position 10,953,434 12,469,931 9,987,848 9,763,905 20,941,282 22,233,836
Net Position, January 1, as Previously Reported 446,024,169 446,026,905 249,162,078 249,162,078 695,186,247 695,188,983
Change in Accounting Principle (9,389,375) (3,218,004) - - (9,389,375) (3,218,004)
Net Position, January 1, as Restated 436,634,794 424,005,769 249,162,078 225,343,784 685,796,872 649,349,553
Net position, December 31 447,588,227$ 455,278,831$ 259,149,926$ 258,925,983$ 706,738,153$ 714,204,814$
CHANGES IN NET POSITION
Comparative Analysis of 2018 and 2017
Governmental Activities Business-type Activities Total
City of Auburn: 2018 CAFR Management’s Discussion and Analysis
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• Excise tax revenue increased by $0.3 million or 6.1%.
• Investment earnings increased by $0.9 million in governmental activities and $0.5 million in business-type activities
for a government-wide increase of $1.4 million. Government-wide miscellaneous revenue increased by $0.4 million
to $1.0 million.
Government-wide expenses increased by approximately $0.3 million or 0.2% 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
10%
Operating Grants &
Contributions
3%
Property Taxes
23%
Sales Taxes
24%
Interfund Utility Taxes
5%
Utility & Admission Taxes
11%
Other Taxes10%
Other Revenue
2%
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Program Expenses and Revenues – Governmental Activities
Business-type net position totaled $259.1 million, an increase of 4.0%. Key components of this increase include:
• Business-type revenues increased $2.4 million to $76.0 million due to increases in charges for services, capital grants
and contributions, interest earnings, and miscellaneous revenues.
• Income (loss) before capital contributions and transfers amounted to:
Water fund: $ 3,296,610
Sanitary sewer fund: 793,981
Storm fund: 928,487
Solid waste fund: 578,897
Non-major funds: 241,344
$ 5,839,319
• Net transfers totaled ($414,975).
$0
$5
$10
$15
$20
$25
$30
MillionsProgram Revenues
Expenses
City of Auburn: 2018 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
Water32.5%
Sanitary Sewer34.4%
Storm Drainage26.6%
Solid Waste
2.1%
Airport3.8%Cemetery
0.7%
$0
$10
$20
$30
$40
$50
$60
$70
$80
$90
$100
Water Sanitary Sewer Storm Drainage Solid WasteMillionsSpendable Net Position
Total Net Position
City of Auburn: 2018 CAFR Management’s Discussion and Analysis
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Comparison of Total Net Position to Spendable Net Position
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
$2
$4
$6
$8
$10
$12
Airport CemeteryMillionsSpendable Net Position
Total Net Position
$0
$2
$3
$5
$6
$8
$9
$11
$12
$14
$15
$17
$18
$20
$21
$23
$24
$26
$27
$29
Water Sanitary Sewer Storm Drainage Solid Waste Minor Business-
Type ActivitiesMillions Revenues
Expenses
City of Auburn: 2018 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, 2018, the City’s governmental funds had combined fund balances of $70.0 million, an increase of $0.9
million or 1.3% over the previous year. This change is primarily due to an increase in fund balance in the capital improvement
fund net of reductions in fund balance for the City’s General Fund and the Arterial Street Fund. The following table shows
the changes in fund balance between 2017 and 2018.
Changes in Fund Balance - By Fund
Charges for
Services
90.6%
Capital
Contributions
6.0%
Investment
Earnings
1.3%
Business-type
Miscellaneous
Income
2.1%
Fund 2018 2017 Difference
General fund 34,041,633$ 34,760,782$ (719,149)$
Arterial street fund 2,062,371 2,584,136 (521,765)
Capital improvement fund 13,325,664 11,271,845 2,053,819
Mitigation fund 11,881,782 11,451,755 430,027
Cemetery endowment fund 1,896,829 1,811,509 85,320
All other government funds 6,742,006 7,179,614 (437,608)
Total 69,950,285$ 69,059,641$ 890,644$
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Of the government funds’ total fund balances, $24.6 million is unassigned. Nonspendable, restricted, committed and
assigned fund balances total $45.3 million. Of this $45.3 million, $15.4 million is earmarked for capital projects, $18.7 million
is in special revenue funds that are earmarked for specific purposes and $1.8 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 2018, the general fund had
a fund balance of $34.0 million, $9.4 million of which is assigned, and $24.6 million is unassigned.
Other funds that had significant fund balances include:
• $13.3 million in the capital improvement projects fund; used for various governmental capital asset projects.
• $20.5 million in all other government funds; used primarily for local street improvements, local revitalization funding
and maintenance of cemetery.
The general fund balance of $34.0 million decreased by $0.7 million from the prior year. Revenues increased due to growth
in property taxes, charges for services, intergovernmental revenues, and miscellaneous revenues. At the same time,
expenses increased over 2017 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
General Fund49%
Arterial Street Fund
3%
CapitalImprovement
Fund19%
Mitigation Fund17%
CemeteryEndowment
Fund3%All OtherGovernment
Funds9%
City of Auburn: 2018 CAFR Management’s Discussion and Analysis
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General fund revenue increased by $1.4 million, sources of which are shown in the chart below. Property taxes increased by
$0.6 million while sales taxes were essentially unchanged from 2017. Utility and other taxes decreased by a net of $0.4 million.
Licenses and Permits decreased slightly due to reductions in building permit fees and plumbing permits. Charges for Services
increased by $0.4 million, Fines & Forfeitures essentially remained unchanged, Intergovernmental Revenues increased by
$0.3 million and Miscellaneous Revenues increased by $0.5 million largely due to interest earnings.
2018 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.
City of Auburn: 2018 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 2018 budget
included:
• Budgeted General Fund expenditures and transfers out increased from $73.2 million to $77.7 million. Significant
changes include expenditures associated with new grants, homeless sheltering, new staff additions, salary and
benefit adjustments, and a one-time transfer to the cumulative reserve fund.
Reasons for the variances in the general fund between the final budget and actual results include:
• Actual General Fund revenues totaled $69.9 million, or 3.3% above budget. Significant areas of favorable variance
include sales and use taxes, which exceeded budget by $953,000; revenues for law enforcement services, which
exceeded budget by $379,000; criminal justice sales taxes, which exceeded budget by $382,000; investment income,
which exceeded budget by $367,000; marijuana sales taxes, which exceeded budget by $172,000; and payments for
emergency services to the Muckleshoot casino, which were $427,000 above budget. Areas of unfavorable variance
include building permits, which were $733,000 below budget; Streamlined Sales Tax mitigation payments, which
were $189,000 below budget; telephone B&O taxes, which were $203,000 under budget; and plan check fees, which
were $320,000 below budget.
• Actual General Fund expenditures totaled $72.4 million and were under budget by $6.8 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 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, 2018 totaled
$642.7 million (net of accumulated depreciation), a decrease of $0.1 million from 2017. 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 $3.7 million in utility infrastructure assets and $2.9 million in
governmental infrastructure assets.
• $6.4 million was spent by proprietary funds on construction projects during the year.
• $13.0 million was spent by governmental funds on construction projects during the year. Some of the larger projects
in the governmental funds include:
$2.5 million on 15th St NE/NW Preservation ( SR-167 to 8th St SE) project
$2.1 million on Local Street Pavement Reconstruction project
$1.0 million on 22nd St NE & I St NE Intersection project
$0.9 million on S 277th Street Preservation project
$0.7 million on Les Gove Park Improvements
$0.7 million on AWS Corridor Safety Improvements - Muckleshoot Plaza
City of Auburn: 2018 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 $73.9 million. Of this amount, $22.2
million is due to other governments, $26.2 million is general obligation bonds, and $25.5 million is revenue bonds for the
water, sewer and storm utilities. The City currently maintains a rating of Aa3 with Moody’s and a rating of AA+ with Standard
& Poor’s for its general obligation debt.
The following schedule summarizes the City’s bonded debt:
Below is a summary of additional, non-bonded long-term debt of the City:
Washington State law limits the amount of general obligation debt a governmental entity may issue to 7.5% of its total
assessed value. Of the 7.5% limit, 2.5% is for general purposes, 2.5% is for open spaces/parks, and 2.5% is for utilities. Non-
voted (limited tax) general obligation indebtedness is limited to 1.5% of assessed valuation. The combination of unlimited
tax and limited tax general obligation debt for all purposes cannot exceed 7.5% of assessed valuation.
Additional information can be found in note 9 and in the statistical section of this report.
Summary of Capital Assets (net of depreciation)
As of 12/31/18 As of 12/31/2017 As of 12/31/18 As of 12/31/2017 As of 12/31/18 As of 12/31/2017
Land 108,890,255$ 108,890,255$ 12,533,022$ 12,526,187$ 121,423,277$ 121,416,442$
Building 52,263,935 53,614,550 1,913,127 2,025,151 54,177,062 55,639,701
Site improvements 7,598,552 7,490,415 214,830,090 207,306,225 222,428,642 214,796,640
Equipment 8,909,038 8,652,792 282,411 293,545 9,191,449 8,946,337
Intangibles (116,596) 37,967 5,701,772 5,449,186 5,585,176 5,487,153
Infrastructure 218,495,563 216,159,542 - - 218,495,563 216,159,542
Construction in progress 8,984,615 10,077,359 2,425,272 10,273,608 11,409,887 20,350,967
405,025,362$ 404,922,880$ 237,685,694$ 237,873,902$ 642,711,056$ 642,796,782$
Governmental Activities Business-type Activities Total
Summary of Bonded Debt
Governmental
Activities
Business-type
Activities Total
General obligation bonds 26,000,051$ 186,420$ 26,186,471$
Revenue bonds - 25,475,000 25,475,000
Due to other governments 22,202,200$ - 22,202,200
48,202,251$ 25,661,420$ 73,863,671$
Other Long-Term Debt
Public Works Trust Fund loans 9,360,698$
Capital Leases 282,461
9,643,159$
City of Auburn: 2018 CAFR Management’s Discussion and Analysis
31
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 8.6% in 2018, and property tax receipts grew by 2.8%. Retail sales remained
flat at 2017 levels ($19.4 million), and the rate of unemployment in the County and City remained low. However, building
permit revenues decreased by nearly 23% reflecting reduced construction activity relative to 2017.
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: 2018 CAFR Management’s Discussion and Analysis
32
City of Auburn: 2018 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: 2018 CAFR Basic Financial Statements
34
City of Auburn: 2018 CAFR Basic Financial Statements
35
Governmental Business-Type
Activities Activities Total
ASSETS:
Cash and Cash Equivalents (Note 3)45,309,574$ 41,001,089$ 86,310,663$
Investments (Note 3)16,023,693 6,785,884 22,809,577
Receivables
Taxes 294,319 - 294,319
Customer Accounts 264,293 8,237,476 8,501,769
Other Receivables 2,641,450 33,957 2,675,407
Special Assessments 4,950 - 4,950
Due From Other Governmental Units (Note 6)2,926,058 218,760 3,144,818
Internal Balances (477,713) 477,713 -
Materials and Supplies Inventory 275,385 204,066 479,451
Restricted Assets:
Temporarily Restricted:
Cash and Cash Equivalents (Note 3)22,827,138 6,607,244 29,434,382
Due From Other Governmental Units (Note 6)1,446,227 - 1,446,227
Permanently Restricted:
Cash and Cash Equivalents (Note 3)1,775,453 - 1,775,453
Prepaids 437,418 - 437,418
Long-Term Contracts and Notes 6,901 623,400 630,301
Net Pension Asset (Note 10)10,038,834 - 10,038,834
Investment in Joint Ventures (Note 15)32,340,466 - 32,340,466
Depreciable Capital Assets (Net of Accumulated Depreciation) (Note 7)287,150,492 217,025,628 504,176,120
Non-Depreciable Capital Assets (Note 7)117,874,870 20,660,066 138,534,936
Total Assets 541,159,808 301,875,283 843,035,091
DEFERRED OUTFLOWS OF RESOURCES:
Deferred Outflows from Bond Refunding - 10,918 10,918
Deferred Outflows related to Pensions 2,221,501 794,473 3,015,974
Total Deferred Outflow of Resources 2,221,501 805,391 3,026,892
LIABILITIES:
Accounts Payable 6,338,251 3,136,870 9,475,121
Other Liabilities Payable 402,079 - 402,079
Payable From Restricted Assets:
Accrued Interest - 1,425,591 1,425,591
Deposits - 230,599 230,599
Unearned Revenue 6,901 - 6,901
Bonds and Other Debt Payable:
Due Within One Year (Note 9)3,368,390 3,164,559 6,532,949
Due in More Than One Year (Note 9)29,026,320 29,986,716 59,013,036
Due to Other Governmental Units:
Due Within One Year (Note 9)739,350 - 739,350
Due in More Than One Year (Note 9)21,462,850 - 21,462,850
Net Penion Liability (Note 10)8,541,631 4,033,086 12,574,717
Firemen's Pension Liability (Note 10)2,973,304 - 2,973,304
Net OPEB Liability (Note 11)16,228,865 - 16,228,865
Total Liabilities 89,087,941 41,977,421 131,065,362
DEFERRED INFLOWS OF RESOURCES:
Deferred Inflows related to Pensions 6,705,141 1,553,327 8,258,468
Total Deferred Inflows of Resources 6,705,141 1,553,327 8,258,468
NET POSITION
Net Investment in Capital Assets 375,208,981 208,136,620 583,345,601
Restricted:
Capital Projects 27,418,887 - 27,418,887
Nonexpendable Permanent Endowment 1,775,453 - 1,775,453
Debt Service 5,386 1,497,309 1,502,695
Tourist Promotion 197,675 - 197,675
Drug Investigation and Enforcement 448,351 - 448,351
Community Development Block Grant Program 42,904 - 42,904
Central Business District Development 113,295 - 113,295
Rate Stabilization - 427,257 427,257
Unrestricted 42,377,297 49,088,740 91,466,037
Total Net Position 447,588,227$ 259,149,926$ 706,738,153$
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, 2018
City of Auburn: 2018 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 10,191,329$ 1,462,867$ 248,595$ 360,399$
Public Safety 30,337,791 2,821,516 2,257,741 10,760
Transportation 17,620,176 886,760 467 6,894,288
Physical Environment 3,794,576 611,342 9,645 258,405
Culture and Recreation 13,665,612 3,355,206 260,586 953,816
Economic Environment 4,140,104 1,913,090 51,742 50,250
Health and Human Resources 787,535 - 3,018 537,939
Interest on Long-Term Debt 1,502,236 - - -
82,039,359 11,050,781 2,831,794 9,065,857
Business-Type Activities
Water 12,499,974 15,294,085 - 1,271,234
Sanitary Sewer 26,213,221 26,582,233 - 2,299,751
Storm Drainage 9,374,373 9,809,840 - 995,853
Solid Waste 15,311,654 15,729,897 106,286 -
Nonmajor Business-Type Activities 2,186,842 2,307,616 - -
65,586,064 69,723,671 106,286 4,566,838
Total Primary Government 147,625,423$ 80,774,452$ 2,938,080$ 13,632,695$
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, 2018
Page 1 of 2
City of Auburn: 2018 CAFR Basic Financial Statements
37
Governmental Business-Type
Activities Activity Total
(8,119,468)$ -$ (8,119,468)$
(25,247,774) - (25,247,774)
(9,838,661) - (9,838,661)
(2,915,184) - (2,915,184)
(9,096,004) - (9,096,004)
(2,125,022) - (2,125,022)
(246,578) - (246,578)
(1,502,236) - (1,502,236)
(59,090,927) - (59,090,927)
- 4,065,345 4,065,345
- 2,668,763 2,668,763
- 1,431,320 1,431,320
- 524,529 524,529
- 120,774 120,774
- 8,810,731 8,810,731
(59,090,927)$ 8,810,731$ (50,280,196)$
21,546,734$ -$ 21,546,734$
21,996,115 - 21,996,115
4,552,505 - 4,552,505
9,841,620 - 9,841,620
4,393,134 - 4,393,134
5,213,217 - 5,213,217
1,657,481 989,564 2,647,045
288,518 599,428 887,946
81,743 3,100 84,843
58,319 - 58,319
414,975 (414,975) -
70,044,361 1,177,117 71,221,478
10,953,434 9,987,848 20,941,282
446,024,169 249,162,078 695,186,247
(9,389,375) - (9,389,375)
436,634,794 249,162,078 685,796,872
447,588,227$ 259,149,926$ 706,738,153$
Changes in Net Position
Net (Expense) Revenue and
Page 2 of 2
City of Auburn: 2018 CAFR Basic Financial Statements
38
City of Auburn: 2018 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: 2018 CAFR Basic Financial Statements
40
Other Total
General Arterial Capital Governmental Governmental
Fund Street Improvement Funds Funds
ASSETS:
Cash and Cash Equivalents 16,402,329$ 1,579,289$ 13,552,771$ 20,472,340$ 52,006,729$
Investments (Note 3)16,023,693 - - - 16,023,693
Receivables:
Taxes 294,319 - - - 294,319
Customer Accounts 179,593 15,991 - - 195,584
Other Receivables 2,248,000 - - 337,152 2,585,152
Special Assessments - - - 4,950 4,950
Interfund Receivable (Note 5)- - 53,210 - 53,210
Inventories 38,179 - - - 38,179
Long-Term Notes and Contracts - - 6,901 - 6,901
Due From Other Governmental Units (Note 6)2,805,564 574,215 31,759 840,253 4,251,791
Total Assets 37,991,677 2,169,495 13,644,641 21,654,695 75,460,508
LIABILITIES, DEFERRED INFLOWS AND FUND BALANCES:
Liabilities:
Current Payables 2,637,034 107,124 312,076 1,129,128 4,185,362
Customer Deposits 274,712 - - - 274,712
Other Liabilities Payable 426 - - - 426
Unearned Revenue - - 6,901 - 6,901
Total Liabilities 2,912,172 107,124 318,977 1,129,128 4,467,401
Deferred Inflow of Resources:
Unavailable Revenue-Special Assessments - - - 4,950 4,950
Unavailable Revenue-Other 1,037,872 - - - 1,037,872
Total Deferred Inflow of Resources 1,037,872 - - 4,950 1,042,822
Fund Balances: (Note 1)
Nonspendable 38,179 - - - 38,179
Nonspendable Permanent Endowment - - - 1,775,453 1,775,453
Restricted - 2,062,371 11,350,312 14,813,815 28,226,498
Committed - - - 3,079,656 3,079,656
Assigned 9,375,470 - 1,975,352 851,693 12,202,515
Unassigned 24,627,984 - - - 24,627,984
Total Fund Balances:34,041,633 2,062,371 13,325,664 20,520,617 69,950,285
Total Liabilities, Deferred Inflows and Fund Balances 37,991,677$ 2,169,495$ 13,644,641$ 21,654,695$ 75,460,508$
The notes to the basic financial statements are an integral part of this statement.
City of Auburn, Washington
BALANCE SHEET
GOVERNMENTAL FUNDS
December 31, 2018
City of Auburn: 2018 CAFR Basic Financial Statements
41
Total governmental fund balances as reported on this statement 69,950,285$
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 396,435,639
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 10,138,266
Prepaids 437,418
Interest receivable on investments 56,298
Net pension asset 7,065,530
17,697,512
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 1,037,872
Unavailabe revenue reported for special assessments 4,950
1,042,822
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 22,228,723
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 (29,708,698)
Premium on Bonds Payable (39,202)
Deferred amount on bond refunding 0
Deferred amounts related to pensions (4,178,983)
Interest payable (126,941)
Net pension liability (7,246,339)
Net other postemployment obligations (16,228,865)
Compensated absences payable (2,237,724)
(59,766,752)
Net position of government activities as reported on the statement of net position 447,588,227$
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, 2018
City of Auburn, Washington
City of Auburn: 2018 CAFR Basic Financial Statements
42
Other Total
General Arterial Capital Governmental Governmental
Fund Street Improvement Funds Funds
REVENUES:
Taxes:
Property 21,422,752$ -$ -$ 139,172$ 21,561,924$
Retail Sales & Use 19,435,888 - - 2,560,227 21,996,115
Interfund Utility 3,902,147 - - 650,358 4,552,505
Utility 8,459,526 - - 1,382,094 9,841,620
Excise 628,432 - 3,636,894 127,808 4,393,134
Other - - - 85,048 85,048
Licenses and Permits 1,853,554 - - - 1,853,554
Intergovernmental 6,625,685 2,481,864 119,365 3,007,315 12,234,229
Charges for Services 4,797,036 545,707 - 1,128,760 6,471,503
Fines and Forfeitures 920,187 - - - 920,187
Special Assessments - - - 2,210 2,210
Investment Earnings 635,693 32,750 251,126 389,319 1,308,888
Miscellaneous 1,267,712 - 19,442 313,125 1,600,279
Total Revenues 69,948,612 3,060,321 4,026,827 9,785,436 86,821,196
EXPENDITURES:
Current:
General Government 9,804,631 - - - 9,804,631
Security of Persons and Property 33,963,331 - - 263,251 34,226,582
Physical Environment 4,128,266 - - - 4,128,266
Transportation 3,768,932 4,031,737 - 7,712,037 15,512,706
Economic Environment 3,213,183 - - 1,101,465 4,314,648
Health and Human Services 787,535 - - - 787,535
Culture and Recreation 12,450,884 - - - 12,450,884
Debt Service:
Principal 61,269 197,376 - 1,418,132 1,676,777
Interest and Other Costs 18,070 11,441 - 1,507,993 1,537,504
Capital Outlay 48,216 - 853,079 1,244,699 2,145,994
Total Expenditures 68,244,317 4,240,554 853,079 13,247,577 86,585,527
Excess (Deficiency) of Revenues
Over (Under) Expenditures 1,704,295 (1,180,233) 3,173,748 (3,462,141) 235,669
OTHER FINANCING SOURCES (USES):
Insurance Recoveries 165,210 - 25,873 97,435 288,518
Transfers In (Note 5)1,609,896 684,494 1,539,189 4,371,738 8,205,317
Transfers Out (Note 5)(4,198,550) (26,026) (2,684,991) (929,293) (7,838,860)
Total Other Financing Sources and Uses (2,423,444) 658,468 (1,119,929) 3,539,880 654,975
Net Change in Fund Balances (719,149) (521,765) 2,053,819 77,739 890,644
Fund Balances - January 1, as Previously Reported 34,760,782 2,584,136 11,271,845 20,442,878 69,059,641
Fund Balances - Ending 34,041,633$ 2,062,371$ 13,325,664$ 20,520,617$ 69,950,285$
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, 2018
City of Auburn: 2018 CAFR Basic Financial Statements
43
Net change in fund balances per the Statement of Revenues, Expenditures and Changes in Fund Balance 890,644$
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 ($13,236,340)
exceeded depreciation ($16,296,067) in the current period.(3,059,727)
Certain Capital and Joint Venture activities do not use or provide current financial resources
but increase net position.1,700,382
Revenues in the Statement of Activities that do not provide current financial resources
are not reported as revenues in the funds:
Property taxes (15,190)
Special assessments (2,333)
Other unavailable revenue (19,410)
Amortization of bond premium 29,138
Investment interest receivable 52,174
44,379
Developer contributions and annexation of infrastructure assets are reported as revenue in the statement
of activities, but do not provide current financial resources and are not reported as fund revenue.2,886,340
Repayment of the principal of long-term debt consumes the current financial resources of
governmental funds but has no effect on the net position. 1,670,205
Internal service funds are used by management to charge the costs of certain activities,
such as insurance and fleet maintenance, to individual funds. The net revenue (expense)
of certain internal service funds is reported with governmental activities.2,172,606
Some expenses reported in the Statement of Activities do not require the use of current
financial resources and therefore are not reported as expenditures in governmental funds.
Amortization of prepaids (109,355)
Change in accrued interest payable 5,456
Change in net pension obligation or asset 3,573,593
Change in net other postemployment benefits 1,243,495
Change in compensated absences payable (64,584)
4,648,605
Change in net position on the Statement of Activities 10,953,434$
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, 2018
City of Auburn: 2018 CAFR Basic Financial Statements
44
Variance with
Final Final Budget
Original Adopted Actual Positive
(GAAP Basis)(GAAP Basis)Results (Negative)
REVENUES:
Taxes:
Property 20,781,000$ 21,281,000$ 21,422,752$ 141,752$
Retail Sales & Use 18,482,650 18,482,650 19,435,888 953,238
Interfund Utility 3,820,100 3,991,000 3,902,147 (88,853)
Utility 8,362,500 8,362,500 8,459,526 97,026
Excise 343,180 343,180 628,432 285,252
Licenses and Permits 2,419,950 2,419,950 1,853,554 (566,396)
Intergovernmental 5,859,350 6,269,050 6,545,887 276,837
Charges for Services 4,056,680 4,307,180 4,797,036 489,856
Fines and Forfeitures 885,300 885,300 920,187 34,887
Investment Earnings 68,000 68,000 434,605 366,605
Miscellaneous 903,800 1,042,000 1,267,712 225,712
Total Revenues 65,982,510 67,451,810 69,667,726 2,215,916
EXPENDITURES:
Current:
General Government 12,046,874 11,705,212 9,804,631 1,900,581
Security of Persons and Property 33,743,226 35,360,976 33,756,696 1,604,280
Physical Environment 4,279,049 4,526,549 4,128,266 398,283
Transportation 3,863,742 4,039,204 3,768,932 270,272
Economic Environment 3,594,282 4,208,332 3,213,183 995,149
Health and Human Services 641,648 1,008,348 787,535 220,813
Culture and Recreation 12,508,702 12,756,002 12,450,884 305,118
Debt Service 77,699 77,699 79,339 (1,640)
Capital Outlay 319,618 38,918 48,216 (9,298)
Total Expenditures 71,074,840 73,721,240 68,037,682 5,683,558
Excess (Deficiency) of Revenues
Over (Under) Expenditures (5,092,330) (6,269,430) 1,630,044 7,899,474
OTHER FINANCING SOURCES (USES):
Insurance Recoveries 25,000 105,000 165,210 60,210
Transfers In (Note 5)84,300 144,300 109,896 (34,404)
Transfers Out (Note 5)(1,785,204) (3,976,504) (2,898,550) 1,077,954
Total Other Financing Sources and Uses (1,675,904) (3,727,204) (2,623,444) 1,103,760
Net Change in Fund Balances (6,768,234) (9,996,634) (993,400) 9,003,234
Fund Balances - Beginning 12,623,309 22,643,676 22,643,676 -
Fund Balances - Ending 5,855,075$ 12,647,042$ 21,650,276$ 9,003,234$
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 10,158,066
The Fire, Relief & Pension Fund is combined with
the General Fund for purposes of GASB Statement 73 2,233,291
Fund Balance - Ending (GAAP)34,041,633$
The notes to the basic financial statements are an integral part of this statement.
Budget Amounts
For the Year Ended December 31, 2018
City of Auburn, Washington
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
GENERAL FUND
City of Auburn: 2018 CAFR Basic Financial Statements
45
Variance with
Final Final Budget
Original Adopted Actual Positive
(GAAP Basis)(GAAP Basis)Results (Negative)
REVENUES:
Taxes:
Intergovernmental $4,995,000 $3,009,100 $2,481,864 ($527,236)
Charges for Services - 466,200 545,707 79,507
Investment Earnings 2,600 2,600 32,750 30,150
Miscellaneous 178,000 - - -
Total Revenues 5,175,600 3,477,900 3,060,321 (417,579)
EXPENDITURES:
Current:
Transportation 6,430,859 6,443,359 4,031,737 2,411,622
Debt Service
Principal 197,376 197,376 197,376 -
Interest and Other Costs 11,442 11,442 11,441 1
Total Expenditures 6,639,677 6,652,177 4,240,554 2,411,623
Excess (Deficiency) of Revenues
Over (Under Expenditures (1,464,077) (3,174,277) (1,180,233) 1,994,044
OTHER FINANCING SOURCES (USES):
Transfers In (Note 5)1,039,817 1,833,417 684,494 (1,148,923)
Transfers Out (Note 5)(3,615) (95,615) (26,026) 69,589
Total Other Financing Sources and Uses 1,036,202 1,737,802 658,468 (1,079,334)
Net Change in Fund Balances (427,875) (1,436,475) (521,765) 914,710
Fund Balances - Beginning 1,376,814 2,584,136 2,584,136 -
Fund Balances - Ending 948,939$ 1,147,661$ 2,062,371$ 914,710$
The notes to the basic financial statements are an integral part of this statement.
Budget Amounts
For the Year Ended December 31, 2018
City of Auburn, Washington
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
ARTERIAL STREET FUND
City of Auburn: 2018 CAFR Basic Financial Statements
46
City of Auburn: 2018 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: 2018 CAFR Basic Financial Statements
48
Governmental
Activities
Non-Major Total
Sanitary Storm Solid Enterprise Enterprise Internal
Water Sewer Drainage Waste Funds Funds Service Funds
ASSETS:
Current Assets
Cash and Cash Equivalents 7,294,288$ 15,768,440$ 10,644,121$ 5,308,275$ 1,985,965$ 41,001,089$ 17,905,436$
Investments - 2,004,660 4,781,224 - - 6,785,884 -
Restricted Cash:
Bond Payments 1,687,994 535,243 803,251 - - 3,026,488 -
Customer Deposits 31,541 95,300 3,422 - 100,336 230,599 -
Other 1,630,314 516,173 1,203,670 - - 3,350,157 -
Customer Accounts 1,837,533 3,516,161 1,105,972 1,777,380 430 8,237,476 68,709
Other Receivables - 19,200 14,757 - - 33,957 -
Due From Other Governmental Units 14,338 - 103,343 49,317 51,762 218,760 120,494
Inventories 183,252 8,316 4,795 - 7,703 204,066 237,206
Total Current Assets 12,679,260 22,463,493 18,664,555 7,134,972 2,146,196 63,088,476 18,331,845
Noncurrent Assets
Long-Term Contracts and Notes - 623,400 - - - 623,400 -
Capital Assets:
Land 897,971 1,695,023 5,937,014 - 4,003,014 12,533,022 -
Intangible - Water Rights 5,701,772 - - - - 5,701,772 -
Buildings and Equipment 2,509,599 1,274,801 290,575 496,618 4,076,062 8,647,655 25,685,338
Improvements Other Than Buildings 142,480,531 103,581,870 81,449,103 - 11,138,268 338,649,772 431,375
Construction in Progress 620,533 1,270,093 153,082 - 381,564 2,425,272 34,727
Less: Accumulated Depreciation (57,946,751) (33,844,064) (28,392,426) (468,389) (9,620,169) (130,271,799) (17,561,714)
Total Capital Assets (Net of A/D)94,263,655 73,977,723 59,437,348 28,229 9,978,739 237,685,694 8,589,726
Total Noncurrent Assets 94,263,655 74,601,123 59,437,348 28,229 9,978,739 238,309,094 8,589,726
Total Assets 106,942,915 97,064,616 78,101,903 7,163,201 12,124,935 301,397,570 26,921,571
DEFERRED OUTFLOW OF RESOURCES:
Deferred Outflow from Bond Refunding - - - - 10,918 10,918 -
Deferred Outflow related to Pensions 274,590 174,689 254,676 46,358 44,160 794,473 268,180
274,590 174,689 254,676 46,358 55,078 805,391 268,180
LIABILITIES:
Current Liabilities:
Current Payables 831,153 409,231 308,381 1,487,189 100,916 3,136,870 1,143,889
Claims Payable (Incurred but not Reported)- - - - - - 1,009,000
Interfund Payables (Note 5)- - - - 53,210 53,210 -
Loans Payable - Current 652,107 288,262 - - - 940,369 -
Employee Leave Benefits - Current 122,115 105,009 156,429 23,202 16,015 422,770 250,119
Revenue Bonds Payable - Current 902,092 274,960 437,948 - - 1,615,000 -
General Obligation Bonds Payable - Current - - - - 186,420 186,420 -
Payable From Restricted Assets:
Accrued Interest 794,779 265,509 365,303 - - 1,425,591 -
Deposits 31,541 95,300 3,422 - 100,336 230,599 -
Other Liabilities Payable - - - - - - 42,874
Total Current Liabilities 3,333,787 1,438,271 1,271,483 1,510,391 456,897 8,010,829 2,445,882
Noncurrent Liabilities
Employee Leave Benefits 44,177 37,988 56,590 8,394 5,794 152,943 90,484
Other LT Liabilities Payable - - - - - - 25,610
Loans Payable 3,123,514 1,802,146 - - - 4,925,660 -
Revenue Bonds Payable 13,952,693 3,924,924 7,030,496 - - 24,908,113 -
Net Pension Liability 2,245,967 771,584 805,573 129,482 80,480 4,033,086 1,295,292
Total Noncurrent Liabilities 19,366,351 6,536,642 7,892,659 137,876 86,274 34,019,802 1,411,386
Total Liabilities 22,700,138 7,974,913 9,164,142 1,648,267 543,171 42,030,631 3,857,268
DEFERRED INFLOW OF RESOURCES:
Deferred Inflow related to Pensions 581,946 340,609 495,860 59,663 75,249 1,553,327 572,837
NET POSITION:
Net Investment in Capital Assets:77,321,243 68,222,674 52,772,155 28,229 9,792,319 208,136,620 8,521,242
Restricted for:
Debt Service 835,535 250,664 411,110 - - 1,497,309 -
Rate Stabilization - - 427,257 - - 427,257 -
Unrestricted 5,778,643 20,450,445 15,086,055 5,473,400 1,769,274 48,557,817 14,238,404
Total Net Position 83,935,421$ 88,923,783$ 68,696,577$ 5,501,629$ 11,561,593$ 258,619,003$ 22,759,646$
Adjustment to reflect the consolidation
of internal service funds related to
enterprise funds 530,923
Net position of business-type activities 259,149,926$
The notes to the basic financial statements are an integral part of this statement.
City of Auburn, WashingtonSTATEMENT OF NET POSITIONPROPRIETARY FUNDS
December 31, 2018
Enterprise Funds
City of Auburn: 2018 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 15,293,485$ 26,582,233$ 9,809,840$ 15,729,897$ 1,445,741$ 68,861,196$ 14,476,455$
Other Operating Revenue 600 - - - 861,875 862,475 340,964
Total Operating Revenue 15,294,085 26,582,233 9,809,840 15,729,897 2,307,616 69,723,671 14,817,419
OPERATING EXPENSES:
Operations & Maintenance 3,692,419 19,117,920 3,568,600 13,441,834 1,314,153 41,134,926 10,625,200
Administration 4,702,259 4,509,602 3,326,599 1,851,001 368,463 14,757,924 975,466
Depreciation / Amortization 3,407,933 2,234,136 2,067,030 18,819 469,060 8,196,978 1,635,347
Other Operating Expenses - 103,267 - - 16,906 120,173 -
Total Operating Expenses 11,802,611 25,964,925 8,962,229 15,311,654 2,168,582 64,210,001 13,236,013
Operating Income (Loss)3,491,474 617,308 847,611 418,243 139,034 5,513,670 1,581,406
NON-OPERATING REVENUE (EXPENSE):`
Interest Revenue 178,271 350,596 327,884 94,592 38,221 989,564 305,899
Other Non-Operating Revenue 324,228 71,039 165,136 66,062 79,249 705,714 154,439
Gain on Sale of Capital Assets - - - - 3,100 3,100 81,743
Interest Expense (697,363) (244,962) (310,816) - - (1,253,141) (2,733)
Other Non-Operating Expenses - - (101,328) - (18,260) (119,588) -
Total Non-Operating Revenue (Expense)(194,864) 176,673 80,876 160,654 102,310 325,649 539,348
Income (Loss) Before Contributions & Transfers 3,296,610 793,981 928,487 578,897 241,344 5,839,319 2,120,754
Capital Contribution 1,271,234 2,299,751 995,853 - - 4,566,838 -
Transfers In (Note 5)2,686,332 - 125,000 - 7,558 2,818,890 935,536
Transfers Out (Note 5)(2,800,400) (95,244) (332,589) - (5,632) (3,233,865) (887,018)
Change in Net Position 4,453,776 2,998,488 1,716,751 578,897 243,270 9,991,182 2,169,272
Net Position, January 1 79,481,645 85,925,295 66,979,826 4,922,732 11,318,323 248,627,821 21,645,374
Change in Accounting Principle - - - - - - (1,055,000)
Net Position, January 1 restated 79,481,645 85,925,295 66,979,826 4,922,732 11,318,323 248,627,821 20,590,374
Net Position, December 31 83,935,421$ 88,923,783$ 68,696,577$ 5,501,629$ 11,561,593$ 258,619,003$ 22,759,646$
Change in net position from this statement 9,991,182
Adjustment to reflect the consolidation of internal service fund
activities related to enterprise funds (3,334)
Change in net position of business-type activities 9,987,848$
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, 2018
Enterprise Funds
City of Auburn: 2018 CAFR Basic Financial Statements
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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 14,808,146$ 25,808,156$ 9,755,235$ 15,654,109$ 2,326,097$ 68,351,743$ 14,673,096$
Cash Paid to Suppliers for Goods & Services (5,345,753) (21,236,056) (3,440,266) (14,709,477) (1,054,703) (45,786,255) (6,901,822)
Cash Paid for Taxes (599) (180) - - (16,935) (17,714) -
Cash Paid to Employees (3,899,467) (2,661,065) (3,934,978) (494,874) (746,087) (11,736,471) (4,657,922)
Other Cash Received 85,537 - - - - 85,537 81,998
Other Non-Operating Revenue - - - - 11,690 11,690 -
Net Cash Provided (Used) by Operating Activities 5,647,864 1,910,855 2,379,991 449,758 520,062 10,908,530 3,195,350
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:
Interfund Loan Payable - - - - (40,572) (40,572) -
Operating Grant 234,406 71,039 131,917 86,279 70,659 594,300 49,999
Transfers In 2,686,332 - 125,000 - 7,558 2,818,890 935,536
Transfers Out (2,800,400) (95,244) (332,589) - (5,632) (3,233,865) (887,018)
Net Cash Provided (Used) by Noncapital Financing Activities 120,338 (24,205) (75,672) 86,279 32,013 138,753 98,517
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES:
Proceeds from Sale of Equipment - - - - 1,400 1,400 177,345
Purchase of Capital Assets (2,529,586) (317,053) (1,339,899) - (146,505) (4,333,043) (2,088,562)
Contributed Capital 285,082 233,805 370,826 - - 889,713 -
Capital Grants - - - - (37,772) (37,772) -
Proceeds from Other Governments - 22,500 - - - 22,500 -
Proceeds from Insurance Settlement 7,915 - - - - 7,915 81,901
Bond Issuance Costs - - - - 10,919 10,919 -
Principal Payment on Debt (1,506,166) (550,947) (425,578) - (176,402) (2,659,093) -
Interest Payment on Debt (775,846) (264,926) (350,697) - (18,261) (1,409,730) (2,733)
Debt Proceeds 86,332 - - - - 86,332 (2,733)
Net Cash Provided (Used) for Capital and Related Financing Activities (4,432,269) (876,621) (1,745,348) - (366,621) (7,420,859) (1,834,782)
CASH FLOW FROM INVESTING ACTIVITIES:
Purchase of Investments - (1,999,360) (4,769,271) - - (6,768,631) -
Interest Received 178,271 345,296 315,931 94,592 38,221 972,311 305,899
Net Cash Provided (Used) in Investing Activities 178,271 (1,654,064) (4,453,340) 94,592 38,221 (5,796,320) 305,899
Net Increase (Decrease) in Cash and Cash Equivalents 1,514,204 (644,035) (3,894,369) 630,629 223,675 (2,169,896) 1,767,717
Cash and Cash Equivalents - Beginning of Year 9,129,933 17,559,191 16,548,833 4,677,646 1,862,626 49,778,229 16,137,719
Cash and Cash Equivalents - End of Year 10,644,137$ 16,915,156$ 12,654,464$ 5,308,275$ 2,086,301$ 47,608,333$ 17,905,436$
CASH AT END OF YEAR CONSISTS OF:
Cash and Cash Equivalents 7,294,288 15,768,440 10,644,121 5,308,275 1,985,965 41,001,089 17,905,436
Restricted Cash - Bond Payments 1,687,994 535,243 803,251 - - 3,026,488 -
Restricted Cash - Customer Deposits 31,541 95,300 3,422 - 100,336 230,599 -
Restricted Cash - Other 1,630,314 516,173 1,203,670 - - 3,350,157 -
Total Cash 10,644,137$ 16,915,156$ 12,654,464$ 5,308,275$ 2,086,301$ 47,608,333$ 17,905,436$
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, 2018
City of Auburn: 2018 CAFR Basic Financial Statements
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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)3,491,474$ 617,308$ 847,611$ 418,243$ 139,034$ 5,513,670$ 1,581,406$
ADJUSTMENTS TO RECONCILE OPERATING INCOME TO
NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES:
Depreciation 3,407,933 2,234,136 2,067,030 18,819 469,060 8,196,978 1,635,347
Other Non-Operating Revenue 85,294 - - - 11,691 96,985 83,033
Write-Off Assets Less Than $5,000 - - (101,328) - - (101,328) -
Asset (Increases) Decreases:
Accounts Receivable (469,958) (770,704) (39,848) (75,788) 6,552 (1,349,746) (145,058)
Miscellaneous A/R Revenue - (19,200) (14,757) - - (33,957) -
Inventory (47,802) 787 2,595 - 797 (43,623) 5,011
Liability Increases (Decreases):
Accounts & Vouchers Payable (533,319) 14,472 (93,061) 121,389 (76,585) (567,104) 275,243
Deposits Payable - 15,827 - - 11,929 27,756 (300)
Wages & Benefits Payable (288,928) (189,689) (274,907) (34,373) (40,185) (828,082) (307,271)
Compensated Absences Payable 3,170 7,918 (13,344) 1,468 (2,231) (3,019) 67,939
Total Adjustments 2,156,390 1,293,547 1,532,380 31,515 381,028 5,394,860 1,613,944
Net Cash Provided (Used) by Operating Activities 5,647,864$ 1,910,855$ 2,379,991$ 449,758$ 520,062$ 10,908,530$ 3,195,350$
SCHEDULE OF NONCASH INVESTING, CAPITAL AND
FINANCING ACTIVITIES
Capital Assets Acquired by Contributed Capital 986,152 2,065,946 625,027 - - 3,677,125 -
Increase (Decrease) in Fair Value of Investment - 5,300 11,953 - - 17,253 -
Total Non Cash Investing, Capital and Financing Activities 986,152$ 2,071,246$ 636,980$ -$ -$ 3,694,378$ -$
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, 2018
PROPRIETARY FUNDS
City of Auburn: 2018 CAFR Basic Financial Statements
52
City of Auburn: 2018 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: 2018 CAFR Basic Financial Statements
54
Agency
Fund
ASSETS:
Cash and Cash Equivalents 543,157$
Receivables:
Customer Accounts 6,181
Total Assets 549,338
LIABILITIES:
Current Payables 499,340
Due to Other Governmental Units 49,998
Total Liabilities 549,338
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, 2018
City of Auburn: 2018 CAFR Notes to the Financial Statements
55
City of Auburn
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2018
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 ............................................................................................................. 59
E. Assets, Liabilities and Fund Balance ............................................................................................................ 60
1. Deposits and Investments .................................................................................................................... 60
2. Receivables ............................................................................................................................................ 61
3. Interfund Receivables and Payables .................................................................................................... 61
4. Amounts Due From Other Governmental Units .................................................................................. 61
5. Inventories and Prepaid Expenses ....................................................................................................... 61
6. Restricted Assets .................................................................................................................................. 61
7. Interfund Transactions ......................................................................................................................... 62
8. Capital Assets ........................................................................................................................................ 62
9. Pensions ................................................................................................................................................ 62
10. Deferred Outflows/Inflows of Resources ............................................................................................ 62
11. Compensated Absences ....................................................................................................................... 63
12. Unearned Revenues.............................................................................................................................. 63
13. Fund Balance Components – Proprietary Funds ................................................................................. 63
14. Fund Balance Components – Governmental Funds ............................................................................ 63
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 .................................................................................................................................................... 69
Note 5 – Interfund Activity ................................................................................................................................................. 71
Note 6 – Due From Other Governmental Units ................................................................................................................ 73
Note 7 – Capital Assets and Depreciation ......................................................................................................................... 74
Note 8 – Capital Lease Obligation ..................................................................................................................................... 75
Note 9 – Long-Term Liabilities ........................................................................................................................................... 76
Note 10 – Pension Plans ...................................................................................................................................................... 80
Note 11 – Other Post-Employment Benefits ...................................................................................................................... 91
Note 12 – Association of Washington Cities Employment Benefit Trust .......................................................................... 93
Note 13 – Construction Commitments ............................................................................................................................... 95
Note 14 – Cemetery Endowed Care Fund ........................................................................................................................... 95
Note 15 – Joint Ventures / Related Party ............................................................................................................................ 95
Note 16 – Jointly Governed Organization / Related Party ................................................................................................. 99
Note 17 – Contingencies and Litigations ............................................................................................................................ 99
Note 18 – Risk Management and Insurance ....................................................................................................................... 99
Note 19 – Tax Abatements ................................................................................................................................................. 101
Note 20 – Change in Accounting Principle ......................................................................................................................... 102
City of Auburn: 2018 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 2018 financial statements have been presented in accordance with the following new Governmental Accounting Standards
Board (GASB) Statements:
a. GASB Statement No. 75 – Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions. This
statement addresses accounting and financial reporting for other post-employment benefits (OPEB) that is provided to
the employees of state and local governmental employers. This statement establishes standards for recognizing and
measuring liabilities, deferred outflows of resources, deferred inflows of resources, and expense/expenditures. Note
disclosure and required supplementary information requirements are also addressed within this GASB statement.
b. GASB Statement No. 85 - Omnibus 2017. This statement establishes accounting and financial reporting requirements for
blending component units, goodwill, fair value measurement and application, and postemployment benefits (pensions
and other postemployment benefits [OPEB]).
The City’s significant accounting policies are described in the following notes.
A. Reporting Entity
In accordance with the criteria set forth in Statement No. 14 of the Governmental Accounting Standards Board (GASB) the City’s
Comprehensive Annual Financial Report (CAFR) includes all funds controlled by the City.
Joint Ventures - Based on the criteria of Governmental Accounting Standards Board (GASB) Statement No. 14 as modified by GASB
Statements No. 34 and 61, the Valley Communications Center and South Correctional Entity Facility (SCORE) are included in the
accompanying government-wide statement of net position as a joint venture. (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, 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.
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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 with a specific function or activity. The
City’s policy is to allocate indirect costs to a specific function or segment. Program revenues include 1) charges to customers or
applicants who purchase, use, or directly benefit from goods, services or privileges provided by a function or activity, and 2) grants
and contributions that are restricted to meeting the operational or capital requirements of a particular function or activity. Taxes
and other items that are not properly included among function or activity revenues are instead reported as general revenues.
Separate financial statements are included for governmental 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
available if they are collected within the current period or soon enough thereafter (30 days) to pay current liabilities. For derived
tax revenues, such as sales tax and utility business and occupation taxes, revenues are recognized in the period when the
underlying exchange has occurred. For imposed non-exchange taxes, such as property taxes, revenues are recognized when the
use of resources is permitted, or when resources are available. Grant revenue is recognized in the period in which the expenditure
occurs and the eligibility requirements have been met. Non-exchange transactions, such as contributions, are recognized when
the donation eligibility requirements have been satisfied. Those specific major revenue sources accrued are:
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Property Taxes – King County and Pierce County collect property taxes and remit to the City daily or monthly.
Sales Tax Revenues – The State of Washington collects all sales taxes. Auburn’s portion is remitted to the City by the State
monthly. The sales tax received in January is recognized as revenue in current year even though received in the subsequent
year because of when the underlying transaction occurred and the resources are considered to be measurable and available.
Grant Revenues – On cost reimbursement grants, grant revenue is recognized when the eligible expenditure is incurred.
Under the modified accrual basis, expenditures are recorded when the fund liability is incurred, except for the un-matured
interest and principal on general long-term debt, which is recognized when due, and for compensated absences which are
recorded as expenditures when liquidated from expendable available fund resources. Purchases of capital assets from
governmental funds are reported as expenditures during the year incurred and the asset is capitalized and reported on
the government-wide statement of net position. Long-term liabilities, including compensated absences not currently due
and payable, are also reported on the government-wide statement of net position.
The accrual basis of accounting is followed in all proprietary 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, general long-
term and special assessment debt principal, interest, and related costs. These funds also include the local
improvement districts (LID) guarantee fund which provides financial security for outstanding LID bonds. No debt
service funds are considered major funds and are reported within the “Other Governmental Funds”.
d.Capital Projects funds – These funds are used to account for financial resources to be used for the acquisition or
construction of major capital facilities other than those financed by proprietary funds. One capital project fund is
considered major: the capital improvement projects fund. This fund accounts for major capital acquisitions, and
street and parks construction projects.
e.Permanent funds – These funds are used to account for resources that are legally restricted to the extent that only
earnings, and not principal, may be used for purposes of supporting a specific City program. The city has one
permanent fund, Cemetery Endowment.
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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 sewer fund,
storm drainage fund, and the solid waste fund.
b. Internal Service funds – These funds are used to account for the financing of goods and services provided to other
funds, departments, or governments on a cost reimbursement basis. The City uses internal service funds to account
for its fleet of vehicles, its maintenance and operation of facilities, the City-wide provision of computer hardware and
software services, the cost of employees affected by an occupational injury or illness, and its insurance premiums.
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.
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.
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The City prepares the biennial budget on the modified accrual basis, which conforms to Generally Accepted Accounting Principles
(GAAP). The CAFR includes budgetary comparisons for those governmental funds with legally adopted budgets. Budget amounts
include the adopted current year budget appropriations and any revisions made during the year.
State law establishes the budget process and the time limits under which a budget must be developed. The City follows the
procedures outlined below to establish its biennial budget:
a.Sixty days prior to each odd numbered fiscal year, the Mayor submits to the City Council a preliminary budget for the
biennium commencing the following January 1st. The operating budget includes proposed expenditures and funding
sources.
b.Public hearings are conducted at the Auburn City Council Meetings to obtain taxpayer comments.
c.Prior to December 31st, the budget is legally enacted through passage of an ordinance.
d.The final operating budget as adopted is published and distributed after adoption. Copies of the budget are made
available to the public.
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, 2018, the Washington State Local Government
Investment Pool (LGIP) was holding $101,513,214 in short-term investments. This amount is classified on the Statement of Net
Position as cash and cash equivalents. The interest on these investments is prorated to the various funds based upon
ownership of investments. For purposes of the Statement of Cash Flows, cash and cash equivalents includes cash on deposit
with financial institutions in both demand and time deposit accounts, and amounts invested in the Local Government
Investment Pool, administered by the State Treasurer’s Office because it is operated in a manner consistent with a Securities
and Exchange Commission’s Rule 2a-7 of the Investment Company Act of 1940. The State Finance Committee is the
administrator of the statute that created the pool and adopts appropriate rules. The State Treasurer’s Office is responsible
for establishing the investment policy for the pool and reviews it annually. Any proposed changes are reviewed by the LGIP
Original Final
Budget Revisions Budget
Governmental Funds
General Fund 72,860,044$ 4,837,700$ 77,697,744$
Total Governmental Funds 72,860,044 4,837,700 77,697,744
Special Revenue Funds:
Local Street 2,418,270$ 1,173,300$ 3,591,570$
Arterial Street 6,643,292 104,500 6,747,792
Hotel/Motel Tax 113,700 106,100 219,800
Arterial Street Preservation 2,880,440 4,123,500 7,003,940
Drug Forfeiture Fund 253,221 18,700 271,921
Housing and Community Development 468,446 741,200 1,209,646
Recreation Trails - - -
Business Improvement Area 55,000 35,000 90,000
Cumulative Reserve 250,000 1,342,200 1,592,200
Mitigation Fees 1,219,817 1,826,100 3,045,917
Total Special Revenue Funds 14,302,186 9,470,600 23,772,786
Total Budgeted Funds 87,162,230$ 14,308,300$ 101,470,530$
ORIGINAL AND SUPPLEMENTAL APPROPRIATIONS
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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 the
improvement. Special assessments receivable consist of current assessments, which are due within one year, delinquent
assessments remaining unpaid after the due date, and unearned, uncollected assessments, which have been levied, but are
not due within one year.
Other receivables include utility taxes due from private organizations and customer accounts receivable, which consist of
amounts owed from private individuals or organizations for goods and services, including amounts owed for which billings
have not been prepared. Notes and contracts receivable consist of amounts owed on open accounts from private individuals
or organizations for goods and services rendered.
3. Interfund Receivables and Payables
These accounts include all interfund receivables and payables. A separate schedule of interfund activity is furnished in Note
5.
4. Amounts Due From Other Governmental Units
This account includes amounts due from other governments for grants, entitlements and charges for services. A schedule by
fund of amounts due from other governmental units is presented in Note 6.
5. Inventories and Prepaid Expenses
Government fund types recognize the cost of inventory items and prepaid expenses (expenses that benefit future periods)
as expenditures in the year of purchase. In governmental funds, materials and supplies remaining at year-end are immaterial
and not included in inventory. In enterprise and internal service funds, inventories are valued at cost using the weighted
average costing method.
6. Restricted Assets
In accordance with the utility bond ordinances, state law, or other agreements, separate restricted assets have been
established. These assets are restricted for specific purposes including the establishment of bond reserve funds, utility rate
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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 acquisition value on the date donated.
Major outlays for capital assets and improvements are capitalized as projects are constructed. The costs of normal
maintenance and repairs that do not add to the value of the asset or materially extend asset lives are not capitalized. For
proprietary funds, interest costs incurred to bring certain assets to the condition and location necessary for their intended
use are capitalized as part of the historical cost of acquiring the assets. Additionally, in situations involving the acquisition of
certain assets financed with the proceeds of tax-exempt borrowing, any interest earned on related interest-bearing
investment from such proceeds are offset against the related interest costs in determining either capitalization rates or
limitations on the amount of interest costs to be capitalized.
Capital assets of enterprise and internal service funds are recorded at cost. The capital assets of the airport are carried at cost
and include those acquired with capital contributed by the Federal Government.
Capital assets of all funds are depreciated, and are calculated on the straight-line method using estimated lives as follows:
Asset
Capitalization
Threshold Depreciation Method
Estimated Useful
Life
Building $5,000 Straight-line 20 - 50 years
Other Improvements $5,000 Straight-line 10 - 50 years
Equipment/Machinery $5,000 Straight-line 2 - 20 years
Infrastructure $5,000 Straight-line 25 - 50 years
Utility Plant $5,000 Straight-Line 25 - 50 years
At the inception of capital leases at the government fund reporting level, the net present value of future minimum lease
payments allocable to the capital asset is reflected as expenditures and an “other financing source” of an equal amount.
9. Pensions
For purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of resources related
to pensions, and pension expense, information about the fiduciary net position of all state sponsored pension plans and
additions to/deductions from those plans’ fiduciary net position have been determined on the same basis as they are reported
by the Washington State Department of Retirement Systems. For this purpose, benefit payments (including refunds of
employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are
reported at fair value.
10. Deferred Outflows/Inflows of Resources
Deferred outflow of resources is the consumption of net position by the government that is applicable to a future reporting
period. The deferred amount on special assessments consist of special assessments not due within one year is reported as
deferred outflows of resources in the governmental funds. Deferred inflow of resources is acquisition of net position by the
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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.
13. Fund Balance Components – Proprietary Funds
In proprietary funds, net position is generally restricted in connection with restricted assets or for legal segregation. These
restrictions are identified on the statement of net position of each fund type.
The City holds and administers a Utility System Rate Stabilization Fund. The City may, by ordinance, withdraw from the Rate
Stabilization Fund for inclusion in the net revenue of the Utility System at any time for any current fiscal year of the Utility
System, except that the total amount withdrawn from the Rate Stabilization Fund in any fiscal year may not exceed the total
debt service of the Utility System in that year.
14. Fund Balance Components – Governmental Funds
Fund balance is presented in the governmental fund financial statements and represents the difference between assets and
liabilities reported within the governmental fund.
Beginning with the most restrictive constraints, fund balance amounts are reported in the following categories:
a. Nonspendable fund balance includes items that cannot be spent. This includes activity that is not in a spendable
form (investments, prepaid amounts, long-term portion of loans/notes receivable, or property held for resale
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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 categories described
above. Also, any deficit fund balances within the other governmental fund types are reported as unassigned.
When expenditure is incurred for purposes for which both restricted and unrestricted resources are available, it is the City’s
policy to use restricted resources first. When expenditures are incurred for purposes, for which unrestricted (committed,
assigned, and unassigned) resources are available, and amounts in any of these unrestricted classifications could be used, it
is the City’s policy to spend committed resources first, then assigned and unassigned, in that order.
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The following shows the composition of the fund balance of the governmental funds for the fiscal year ended December 31, 2018:
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.
Arterial Capital Other Total
General Street Improvement Governmental Governmental
Fund Fund Fund Funds Funds
Nonspendable
Inventory 38,179$ -$ -$ -$ 38,179$
Cemetery Endowment - - - 1,775,453 1,775,453
Total Nonspendable 38,179 - - 1,775,453 1,813,632
Restricted
Major Street Construction - 2,062,371 - - 2,062,371
REET 1 Allowable Projects - - 5,325,988 - 5,325,988
REET 2 Allowable Projects - - 6,024,323 - 6,024,323
Arterial Street Presevation Fund - - - 1,510,377 1,510,377
Parks and Trails Construction Projects - - - 615,903 615,903
City Tourism Promotion - - - 197,675 197,675
Drug Investigation and Enforcement - - - 448,351 448,351
Community Development Block Grant Program - - - 42,904 42,904
Recreational Trail Development - - - 64,726 64,726
Downtown Business Area Improvements - - - 113,295 113,295
Street and Fire Service Mitigation Fees - - - 11,815,198 11,815,198
Debt Service - - - 5,386 5,386
Total Restricted - 2,062,371 11,350,312 14,813,815 28,226,498
Committed
Local Street Improvements (Save our Streets)- - - 2,584,603 2,584,603
Arterial Street Preservation - - - 495,053 495,053
Total Committed - - - 3,079,656 3,079,656
Assigned
Appropriations Over Estimated Revenue 9,375,470 - - - 9,375,470
Arterial Street Preservation Fund - - 1,975,352 39,029 2,014,381
Drug Investigation and Enforcement - - - 8,843 8,843
Recreation Trail Development - - - 1,150 1,150
Downtown Business Area Improvements - - - 2,518 2,518
Local Street Improvements - - - 215,354 215,354
School Administration Fees - - - 66,584 66,584
Cemetery Capital Enhancement and Maintenance - - - 121,376 121,376
Downtown Infrastructure Improvements - - - 381,988 381,988
Debt Service - - - 14,851 14,851
Total Assigned 9,375,470 - 1,975,352 851,693 12,202,515
Unassigned
Unassigned 24,627,984 - - - 24,627,984
Total Unassigned 24,627,984 - - - 24,627,984
Total Fund Balances 34,041,633$ 2,062,371$ 13,325,664$ 20,520,617$ 69,950,285$
Governmental Fund Balances
December 31, 2017
Major
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Contributions of capital in proprietary fund financial statements arise from internal and external contributions of capital assets or
from grants or outside contributions of resources restricted to capital acquisition and construction.
Transfers between government and business-type activities on the government-wide statement of activities are reported as
general revenues. Transfers between funds reported in the governmental activities column are eliminated, as are transfers
between funds reported in the business-type activities column.
G. Estimates
The preparation of the financial statements in conformity with accounting principles generally accepted in the United States
requires management to make estimates and assumptions that affect the amounts reported in the financial statements and
accompanying notes. Actual results may differ from those estimates.
NOTE 2 – STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY
There have been no material violations of finance-related legal or contractual provisions, and there have been no expenditures
exceeding legal appropriations in any of the funds of the City of Auburn.
NOTE 3 – DEPOSITS AND INVESTMENTS
At December 31, 2018, the carrying amount of the City’s cash demand deposits with Key Bank totaled $6,313,508 while the bank
balance was $6,524,135. In addition, the balance of the City’s interest bearing checking account with Opus Bank totaled
$10,218,137. 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, 2018. 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 2018, the net increase in the fair value of investments being held for more than one year is $49,335 at year-end.
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As of December 31, 2018, the City had the following investments and maturities:
The city measures and reports investments at fair value using the valuation input hierarchy established by generally accepted
accounting principles, as follows:
*Level 1 – Quoted prices in active markets for identical assets or liabilities;
*Level 2 – These are quoted market prices for similar assets or liabilities, quoted prices for identical or similar assets or
liabilities in markets that are not active, or other quoted prices that are not observable;
*Level 3 – Unobservable inputs for an asset or liability.
Fair Less than 1 to 2 2 to 3 Greater than
Investment Type Value 1 year years years 3 years
US Agency 21,047,957$ 10,027,935$ $7,013,522 $2,004,660 2,001,840$
Municipal Bond 1,761,620 - 1,761,620 - -
22,809,577$ 10,027,935$ 8,775,142$ 2,004,660$ 2,001,840$
Reconciliation to government-
wide statement of net position:
Total investments above 22,809,577$
Plus: cash in checking 16,531,645
Plus: petty cash 18,800
Less: cash investments in fiduciary funds (543,157)
Total cash and investments at fair value 38,816,860$
Amortized
Investment Type Cost
State investment pool (LGIP)101,513,214$ 101,513,214$ -$ -$ -$
101,513,214$ 101,513,214$ -$ -$ -$
Total cash and investments, government-
wide statement of net position 140,330,075$
Schedule of Investments by Maturities
As of December 31, 2018
Investment maturities
Governmental Business-Type
Activities Activities Total
Cash and Cash Equivalents 45,309,574$ 41,001,089$ 86,310,663$
Cash with Outside Agencies - - -
Investments 16,023,693 6,785,884 22,809,577
Temporarily Restricted:
Cash and Cash Equivalents 22,827,138 6,607,244 29,434,382
Permanently Restricted:
Cash and Cash Equivalents 1,775,453 - 1,775,453
85,935,858$ 54,394,217$ 140,330,075$
Reconciliation of Cash and Investments
Government-Wide Statement of Net Position
As of December 31, 2018
City of Auburn: 2018 CAFR Notes to the Financial Statements
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At December 31, 2018, 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 will not fulfill its obligations. State law and the City’s
investment policy limits the instruments in which the City may invest. These include:
1. US Treasury obligations
2. US Government Agency obligations and US Government Sponsored Enterprises (GSE’s) which may include, but are not
limited to Federal Farm Credit Bank (FFCB), Federal Home Loan Bank (FHLB), Government National Mortgage Association
(GNMA), Federal Home Loan Mortgage Corporation (FHLMC), Federal National Mortgage Association (FNMA), Student
Loan Marketing Corporation (SLMA), and/or Tennessee Valley Authority (TVA)
3. Non-negotiable Certificates of Deposit of financial institutions which are qualified public depositories as defined by RCW
39.58.010(2) and in accordance with the restrictions therein
4. Bonds of the State of Washington and any local government in the State of Washington, General Obligation bonds
outside the State of Washington; at the time of investment, the bonds must have a rating of AA- from S&P or Aa3 from
Moody’s, or higher. In the case of a split rating, the lower rating of these two rating agencies will be used.
5. Washington Local Government Investment Pool (LGIP) managed by the Washington State Treasurer’s Office
6. Other investments authorized by law
7. Time deposits and savings account deposits with Washington State Public Deposit Protection Commission (PDPC)
approved banks.
The City’s municipal bond holding at time of purchase carried a AAA rating from S&P and a Aaa rating from Moody’s.
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, US Agency Securities and the
Washington State Local Government Investment Pool which may comprise 100% of the total investment portfolio.
Quoted Prices in
Active Markets for
Identical Assets
Significant
Other
Observable
Inputs
Significant
Unobservable
Inputs
Investments by Fair Value Level 12/31/2018 (Level 1)(Level 2)(Level 3)
US Agency 21,047,957$ 21,047,957$ -$ -$
Municipal Bond 1,761,620 1,761,620 - -
Total Investments by Fair Value Level 22,809,577$ 22,809,577$ -$ -$
Investments and Derivative Instruments Measured at Fair Value
As of December 31, 2018
Fair Value Measurements Using
City of Auburn: 2018 CAFR Notes to the Financial Statements
69
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:
NOTE 4 – PROPERTY TAXES
Property taxes received during tax year 2018 were $21,561,924 including collection of prior year delinquent assessments. Property
taxes assessed for collection in tax year 2018 were based on a regular tax levy of $2.20 per $1,000 on a total 2017 assessed value
of $10,559,150,607.
For levy year 2018, to be received in 2019, the City’s regular tax levy is $2.03 per $1,000 on a 2018 assessed valuation of
$11,393,504,898, as of December 31, 2018, for a total regular levy of $22,007,247. State law provides that debt cannot be incurred
in excess of the following percentages of the taxable property of the City.
1.50% of assessed value without a vote of the people
2.50% of assessed value with a vote of the people
The City has additional authority to incur the following debt as a percentage of total valuation.
2.50% of assessed value with a vote of the people, indebtedness is for utilities
2.50% of assessed value with a vote of the people, indebtedness is for parks, or open space development
At December 31, 2018, the debt limits for the City were as follows:
State
Investment U.S.Municipal
Pool Agency Bond Total
General Fund -$ 16,023,693$ -$ 16,023,693$
Permanent Fund - - -
Enterprise Funds - 5,024,264 1,761,620 6,785,884
Internal Service Funds - - - -
Fiduciary Funds - - - -
Treasurer's Residual Funds 101,513,214 - - 101,513,214
Total 101,513,214$ 21,047,957$ 1,761,620$ 124,322,791$
Schedule of Investments by Fund Category and Investment Type
As of December 31, 2018
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 170,902,573$ 113,935,049$ 284,837,622$ 284,837,622$ 854,512,866$
Outstanding indebtedness (52,097,318) - - - (52,097,318)
Margin available 118,805,255$ 113,935,049$ 284,837,622$ 284,837,622$ 802,415,548$
With a Vote
City of Auburn: 2018 CAFR Notes to the Financial Statements
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The County Treasurer acts as an agent to collect property taxes levied in the county for all taxing authorities. Taxes are levied
annually on January 1 on property values listed as of the prior August 31. The County assesses property at 100% of fair 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 penalties 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. During the year, property tax revenues are recognized when cash is
received.
1.The Washington State Constitution limits the total regular property taxes to 1% of assessed valuation or $10 per $1,000 of
value. If the taxes of all districts exceed this amount, each is proportionately reduced until the total is at or below the 1% limit.
2.Washington State law in RCW 84.55.010 limits the annual growth of regular property taxes to the lesser of 1% or the rate of
inflation. With a vote of the majority of the voters within a taxing district, the 1% levy limitation can be “lifted” and additional
taxes may be levied
3.The City may voluntarily levy taxes below the legal limit.
Special levies approved by the voters are not subject to the above limitations.
Property taxes are recorded as receivable and offset by an unearned revenue account when levied. Since state law allows for the
sale of property for failure to pay taxes, no estimate of uncollectible taxes is made.
City of Auburn: 2018 CAFR Notes to the Financial Statements
71
NOTE 5 – INTERFUND ACTIVITY
Transfers are legally authorized transfers of resources from a fund receiving revenue to the fund through which resources are to
be expended. The principal purposes for interfund transfers include interfund subsidies and transfers into capital project and
debt service funds. Interfund transfers for the year ended December 31, 2018 were as follows:
Funds Transfer In Transfer Out
Governmental funds:
General 109,896$ 2,898,550$
Cumulative Reserve 1,500,000 1,300,000
Total general fund 1,609,896 4,198,550
Other Governmental funds
Special revenue funds:
Arterial Streets 684,494 26,026
Local Streets 150,000 317
Hotel / Motel tax - 7,000
Arterial Street Preservation 1,466,120 -
Mitigation Fees 133,800 914,418
Total special revenue funds 2,434,414 947,761
Debt service funds:
1998 Library GO 282,150 -
2010 A&B Annex 1,314,721 -
2010 C&D Local Revitalization 226,109 -
LID 250 372,014 -
Total debt service funds 2,194,994 -
Capital projects funds:
Municipal Park Construction 426,824 -
Capital Improvements 1,539,189 2,684,991
Total capital projects funds 1,966,013 2,684,991
Total all governmental funds 8,205,317 7,831,302
Proprietary funds:
Water 2,686,332 2,800,400
Sewer - 95,244
Storm Drainage 125,000 332,589
Non-major Enterprise funds
Airport - 5,000
Cemetery 7,558 632
Total proprietary funds 2,818,890 3,233,865
Internal service funds:
Facilities 242,411 857,624
Innovation & Technology 276,575 29,394
Equipment Rental 416,550 -
Total internal service funds 935,536 887,018
Permanent funds:
Cemetery Endowed Care - 7,558
Total 11,959,743$ 11,959,743$
All transfers are considered routine.
Transfers
City of Auburn: 2018 CAFR Notes to the Financial Statements
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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 1/1/2018 New Loans Repayments 12/31/2018
Housing & Comm. Dev.General fund 50,000$ -$ 50,000$ -$
Airport Fund Capital Improvement 93,782 - 40,573 53,210
Total interfund loans 143,782$ -$ 90,573$ 53,210$
All interfund loans are considered short-term cash loans.
*The purpose of the interfund loan to Housing & Community Development was to cover authorized expenditures while the City waited 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.
Interfund Loans
City of Auburn: 2018 CAFR Notes to the Financial Statements
73
NOTE 6 – DUE FROM OTHER GOVERNMENTAL UNITS
As of December 31, 2018 the City had receivables due from other governmental units as follows:
General Fund:
Auburn School District 25,069
City of Kent -Utilities 103
King County Arts Commission 17,000
King County District Court 487,494
King County Library Systems 11,830
King County -Real Estate Excise Taxes 197,437
King County Sheriff's - Registered Sex Offender Grant 9,677
King County VSHS Levy grant 49,845
Pierce County - Real Estate Excise Taxes 11,316
Muckleshoot Indian Tribe 310,770
Department of Commerce -VNET 2,560
US Department of Justice -Bulletproof Vest Program 3,324
US Department of Justice -COPS Hiring Program 72,974
US Department of Justice -SCAAP Grant 467
WA Association of Sheriffs & Police Chiefs 2,000
WA Auto Theft Prevention Authority - Auto Theft Prevention Grant 104,173
WA State Criminal Justice Training 37,245
WA State Department of Ecology - Shoreline Master Program 9,645
WA State Military Department -EMPG Grant 15,468
WA State Treasurer - Sales Taxes 1,437,166
Total General Fund 2,805,564
Arterial Street Fund:
City of Kent 10,000
KCWTD 14,469
WA State Transportation Improvement Board - Arterial Street Imp.196,699
WA Dept. of Transportation - Arterial Street Improvements 353,046
Total Arterial Street Fund 574,215
Arterial Street Preservation Fund:
WA Dept. of Transportation - Arterial Street Preservation 618,926
Drug Forfeiture Fund:
Pierce County Sheriff's Department -TNET 5,979
Total Drug Forfeiture Fund 5,979
Housing & Community Development:
City of Bellevue 1,783
City of Federal Way 1,783
City of Kent 1,783
U.S. Dept. of Housing - Community Development Block Grant 100,442
Total Housing & Community Development Fund 105,791
Municipal Park Construction Fund:
WA State Recreation & Conservation 9,250
WA State Historical Society 100,307
Total Municipal Park Construction Fund 109,557
Capital Improvements General Government:
4Culture -Grant 7,147
Pierce County - Real Estate Excise Taxes 18,492
WA State Transportation Improvement Board - Grant 922
WA State Utilities & Transportation-Grant 5,198
Total Capital Improvements Fund 31,759
Water Fund:
Valley Communications -Lease 1,000
WA State Military Department -Grant (Capital Fund)13,338
Total Water Fund 14,338
Storm Fund:
City of Algona -Decant Admin Fee 90
City of Pacific -Decant Admin Fee 300
King County -Grant (Capital Fund)3,219
WA State Department of Ecology 99,734
Total Storm Drainage Fund 103,343
Solid Waste Fund:
King County - Local hazardous waste management grant 8,674
King County - Waste reduction and recycling grant 20,824
WA State Department of Ecology 19,819
Total Solid Waste fund 49,317
Airport Fund
Federal Aviation Administration -Grant 49,384
WA State Department of Transportation 2,378
Total Airport l fund 51,762
Facilities Fund:
VRFA 15
City of Federal Way 42,000
King County -Senior Center Grant 49,999
Total Facilities fund 92,014
Information Services Fund:
City of Pacific 3,667
VRFA 4,813
Total Information Services fund 8,480
Equipment Rental Capital Fund:
WCIA 20,000
Total 4,591,045
Reconciliation to government-wide statement of net assets:
Total above due from other governmental units 4,591,045
Amount due to fiduciary fund -
Total due from other governmental units,
4,591,045
Due from Other Governmental Units
government-wide statement of net assets
City of Auburn: 2018 CAFR Notes to the Financial Statements
74
NOTE 7 – CAPITAL ASSETS AND DEPRECIATION
Capital asset activity for the year ended December 31, 2018 is as follows:
Balance Decreases/Balance
1/1/18 Increases Adjustments 12/31/18
Governmental activities:
Capital assets, not being depreciated:
Land 108,890,255$ -$ -$ 108,890,255$
Construction in progress 10,077,359 9,111,220 (10,203,964) 8,984,615
Total capital assets, not being depreciated 118,967,614 9,111,220 (10,203,964) 117,874,870
Capital assets, being depreciated:
Buildings 73,616,279 200,783 - 73,817,062
Improvements other than buildings 23,005,439 823,326 - 23,828,765
Machinery and equipment 29,563,721 2,138,321 (1,214,822) 30,487,220
Intangibles 1,095,684 - - 1,095,684
Infrastructure 386,862,467 16,156,736 (15,180) 403,004,023
Total capital assets being depreciated 514,143,590 19,319,166 (1,230,002) 532,232,754
Less: accumulated depreciation for:
Buildings (20,001,729) (1,551,398) - (21,553,127)
Improvements other than buildings (15,515,024) (715,189) - (16,230,213)
Machinery and equipment (20,910,929) (1,704,730) 1,037,477 (21,578,182)
Intangibles (1,057,717) (154,563) - (1,212,280)
Infrastructure (170,702,925) (13,805,535) - (184,508,460)
Total accumulated depreciation (228,188,324) (17,931,415) 1,037,477 (245,082,262)
Total capital assets, being depreciated, net 285,955,266 1,387,751 (192,525) 287,150,492
Governmental activities capital assets, net 404,922,880$ 10,498,971$ (10,396,489)$ 405,025,362$
Business-type activities:
Capital assets, not being depreciated:
Land 12,526,187$ 6,835$ -$ 12,533,022$
Water Rights 5,449,186 252,586 - 5,701,772
Construction in progress 10,273,608 4,256,481 (12,104,817) 2,425,272
Total capital assets, not being depreciated 28,248,981 4,515,902 (12,104,817) 20,660,066
Capital assets, being depreciated:
Buildings 6,076,886 8,548 - 6,085,434
Improvements other than buildings 323,090,795 15,558,972 - 338,649,767
Machinery and equipment 2,540,372 31,563 (9,713) 2,562,222
Total capital assets being depreciated 331,708,053 15,599,083 (9,713) 347,297,423
Less: accumulated depreciation for:
Buildings (4,051,735) (120,572) - (4,172,307)
Improvements other than buildings (115,784,570) (8,035,107) - (123,819,677)
Machinery and equipment (2,246,827) (41,297) 8,313 (2,279,811)
Total accumulated depreciation (122,083,132) (8,196,976) 8,313 (130,271,795)
Total capital assets, being depreciated, net 209,624,921 7,402,107 (1,400) 217,025,628
Business-type activities capital assets, net 237,873,902$ 11,918,009$ (12,106,217)$ 237,685,694$
Schedule of Capital Asset Activity
City of Auburn: 2018 CAFR Notes to the Financial Statements
75
Capital asset activity for the year ended December 31, 2018 is as follows:
Depreciation/amortization expense was charged to functions/programs of the City as follows:
The 2018 total interest cost incurred for business-type activities was $1,253,141 of which $1,253,141 was charged to expense.
NOTE 8 – CAPITAL LEASE OBLIGATION
The City has the following capital leases:
On January 1, 2007 the City entered into a capital lease agreement for the Auburn Avenue Theater facility for a 15 year term. The
intent is for the City’s Parks, Arts and Recreation department to offer performances to the public, as well as make the facility
available for short-term rentals.
On July 15, 2015 the City entered into a 5 year term capital lease agreement to finance the purchase of a John Deere Excavator.
The lease agreement qualifies as a capital lease for accounting purposes.
The assets acquired through capital leases are as follows:
Governmental activities:
General government 1,046,748$
Public safety 538,701
Transportation 13,288,938
Physical environment -
Culture and recreation 1,421,680
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 1,635,348
Total depreciation/amortization expense - governmental activities 17,931,415$
Business-type activities:
Water 3,407,933$
Sanitary sewer 2,234,136
Storm water 2,067,030
Solid waste 18,819
Golf course -
Airport 435,848
Cemetery 33,212
Total depreciation expense - business-type activities 8,196,978$
Governmental
Asset Activities
Auburn Avenue Theater 749,110$
John Deere Excavator 205,334
Less: Accumulated Depreciation (734,111)
Total Assets Acquired Through Capital Leases 220,333$
Assets Acquired Through Capital Leases
City of Auburn: 2018 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, 2018, were
as follows:
NOTE 9 – LONG-TERM LIABILITIES
General Obligation Bonds are direct obligations of the City for which its full faith and credit are pledged. Debt service for voter-
approved issues, of which the City has none, would be funded by special property tax levies. Debt service for City Council
authorized bonds, also called councilmanic bonds, is funded from regular property taxes or general revenues, and is generally
paid from debt service funds but can be paid from other designated funds.
General Obligation Bonds outstanding at year-end are as follows:
• 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 deposited 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 has
been removed from the City’s financial statements. The remaining balance of outstanding defeased debt as of December 31,
2018 is $2,631,471.
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 $9,360,697. Seven of the loans are for water
and sewer construction projects. The loans are being repaid from water and sewer fund revenues over a 20-year period that begins
upon each project completion (PWTF 1999, PWTF 2001, PWTF 2002, PWTF 2004, PWTF 2006, PWTF 2013, & DWSRF 2016). The
other two loans are for arterial street improvements and are being repaid from arterial street fund revenues over a 20-year period
that began in 2009 upon project completion (PWTF 2008) and over a 29-year period that began in 2013 upon project completion
(PWTF 2012).
Lease Payable
Theater Excavator Total
2019 79,339 44,342 123,681
2020 79,339 25,867 105,206
2021 80,333 - 80,333
Total minimum lease payments 239,011 70,209 309,220
Less: Amounts representing interest (25,034) (1,725) (26,759)
Present value of future minimum lease payments 213,977$ 68,484$ 282,461$
Schedule of Future Minimum Lease Payments
City of Auburn: 2018 CAFR Notes to the Financial Statements
77
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, 2018. 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 12/31/17 31,851,816$ 33,737,388$ 3,024,535$ 9,137,985$ 17,599,730$ 3,212,435$ 1,200,626$ 22,918,300$ 122,682,815$
Added - 86,332 2,273,713 8,932,099 - 108,873 - - 11,401,017
Retired (1,888,215) (2,482,691) (2,144,208) (1,841,219) (5,025,013) (348,004) (113,311) (716,100) (14,558,761)
Long-term liabilities payable 12/31/18 29,963,601$ 31,341,029$ 3,154,040$ 16,228,865$ 12,574,717$ 2,973,304$ 1,087,315$ 22,202,200$ 119,525,071$
(1) Includes capital leases
CHANGES IN LONG-TERM LIABILITES SUMMARY
Year Principal Interest Principal Interest Principal Interest Principal (1)Interest
2019 2,094,636 2,843,041 108,768 14,912 2,752,745 1,344,491 4,956,149 4,202,445
2020 1,969,766 2,755,227 96,480 8,727 2,630,376 1,273,406 4,696,622 4,037,360
2021 2,039,702 2,665,409 77,213 3,120 2,690,376 1,207,458 4,807,291 3,875,987
2022 2,109,908 2,564,978 - - 2,523,291 1,118,520 4,633,199 3,683,498
2023 2,174,533 2,459,271 - - 2,567,176 1,022,420 4,741,709 3,481,691
2024-2028 10,957,726 10,488,255 - - 13,061,669 3,520,436 24,019,395 14,008,691
2029-2033 12,477,150 6,947,455 - - 7,674,119 648,556 20,151,269 7,596,012
2034-2038 13,325,250 2,733,809 - - 584,966 8,774 13,910,216 2,742,583
2039-2043 1,240,000 77,413 - - 350,979 1,755 1,590,979 79,168
2043-2047 - - - - - - - -
Totals 48,388,671$ 33,534,858$ 282,461$ 26,759$ 34,835,698$ 10,145,817$ 83,506,830$ 43,707,434$
(1)83,506,830$ Principal debt service requirements to maturity
3,154,040 Employee Leave Benefits
16,228,865 Other Post Employment Benefits
12,574,717 Net Pension Liability
2,973,304 Firemen's Pension Liability
1,087,315 Premium
119,525,071$ Long Term Liabilities 12/31/2018
Obligation Bonds Obligation Bonds/Loans Long-Term Debt
DEBT SERVICE REQUIREMENT TO MATURITY
General Capital Lease Utility Total
City of Auburn: 2018 CAFR Notes to the Financial Statements
78
Interest Maturity Original Principal Balance Balance Due Within
Issue Name Rates Date Amount(2) Installments 12/31/17 Additions Reductions 12/31/18 One Year
GOVERNMENTAL DEBT
General Obligation Bonds:
LTGO 2010A (1)2.00-4.50%12/1/2018 4,385,000 $235,000 - $720,000 270,000$ -$ (270,000)$ -$ -$
LTGO 2010B (1)3.27-6.24%12/1/2039 20,365,000 $535,000 - $1,240,000 18,725,000 - (575,000) 18,150,000 590,000
LTGO 2010D (1)3.27-6.19%12/1/2034 6,320,000 $220,000 - $445,000 5,645,000 - (240,000) 5,405,000 245,000
LTGO Refunding 2016 - Golf/Cemetery 1.64 -1.64%12/1/2025 3,166,930 $71,470 - $366,159 2,771,611 - (326,560) 2,445,051 333,866
Total General Obligation Bonds 34,236,930 27,411,611 - (1,411,560) 26,000,051 1,168,866
Capital Leases:
Auburn Avenue Theater 6.58%12/31/2021 695,504 $4,114 - $6,612 275,246 - (61,269) 213,977 65,895
John Deere Financial Excavator Lease 3.00%7/15/2020 205,334 $3,695 110,092 - (41,608) 68,484 42,874
Total Capital Leases 900,838 385,338 - (102,877) 282,461 108,769
Employee Leave Benefits:
Compensated absences 2,445,803 1,858,688 (1,726,164) 2,578,327 1,893,379
Other Post Employment Benefits:
LEOFF 1 9,137,985 8,932,099 (1,841,219) 16,228,865 -
Pensions:
Net Pension Liability 11,986,783 - (3,445,152) 8,541,631 -
Firemen's Pension Liability 3,212,435 108,873 (348,004) 2,973,304 -
Public Works Trust Fund Loans:
PWTF 2008 0.50%7/1/2028 1,527,273 $80,383 884,210 - (80,383) 803,827 80,383
PWTF 2012 0.50%6/1/2041 3,284,857 $116,993 2,807,835 - (116,993) 2,690,842 116,993
Total Public Works Trust Fund Loans 4,812,130 3,692,045 - (197,376) 3,494,669 197,376
Premium Related to Debt 73,928 - (34,726) 39,202 -
Total Governmental 39,949,898$ 58,345,928$ 10,899,660$ (9,107,078)$ 60,138,510$ 3,368,390$
BUSINESS-TYPE DEBT
General Obligation Bonds
LTGO Refunding 2016 - Airport 1.64 -1.64%12/1/2019 700,284 $166,439 - $186,420 362,822 - (176,402) 186,420 186,420
Total General Obligation Bonds 700,284 362,822 - (176,402) 186,420 186,420
Revenue Bonds:
Utility sys bonds 2010 (1)3.00-6.40%12/1/2030 21,295,000 $575,000 - $1,720,000 17,865,000 - (1,070,000) 16,795,000 1,120,000
Utility sys bonds 2013 (1)0.38-4.00%12/1/2032 11,415,000 $335,000 - $785,000 9,170,000 - (490,000) 8,680,000 495,000
Total Revenue Bonds 32,710,000 27,035,000 - (1,560,000) 25,475,000 1,615,000
Employee Leave Benefits:
Compensated absences 578,732 415,025 (418,044) 575,713 422,770
Net Pension Liability 5,612,947 - (1,579,861) 4,033,086 -
Public Works Trust Fund & Drinking Water Loans:
PWTF 1999 1.00%7/1/2019 3,465,000 $182,368 364,736 - (182,368) 182,368 182,368
PWTF 2001 0.50%7/1/2021 4,290,405 $227,086 908,343 - (227,086) 681,257 227,086
PWTF 2002 1.00%7/1/2022 641,250 $26,114 130,572 - (26,114) 104,458 26,114
PWTF 2004 0.50%7/1/2024 2,049,036 $107,844 754,908 - (107,844) 647,064 107,844
PWTF 2006 0.50%7/1/2026 3,325,000 $180,418 1,623,763 - (180,418) 1,443,345 180,418
PWTF 2013 2.00%6/1/2032 3,325,000 $188,538 2,828,076 - (188,538) 2,639,538 188,538
DWSRF 2016 1.50%10/1/2024 1,353,400 $28,000 91,990 86,332 (10,323) 167,999 28,000
Total Public Works Trust Fund & Drinking Water Loans 18,449,091 6,702,388 86,332 (922,691) 5,866,029 940,369
Premium Related to Debt 1,126,698 - (78,585) 1,048,113 -
Total Proprietary 51,859,375$ 41,418,587$ 501,357$ (4,735,583)$ 37,184,361$ 3,164,559$
Total All Funds 91,809,273$ 99,764,515$ 11,401,017$ (13,842,661)$ 97,322,871$ 6,532,949$
(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: 2018 CAFR Notes to the Financial Statements
79
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 2018 was 1.65. The ratio indicates the direction and degree to which the
revenue stream exists to meet the current debt burden. The ratio is calculated by dividing the net revenue available by debt
service requirements.
The restricted rate stabilization fund for the utility revenue bonds was established to minimize the effect on rates of revenue
fluctuations between years. By transferring cash into this stabilization fund, adjusted net revenue available for debt service, as
defined, would be decreased by the amount of the transfer. Conversely, transfers out of the account would increase adjusted net
revenue available for debt service.
Estimated Arbitrage Rebate
The Federal Tax Reform Act of 1986 requires issuers of tax-exempt debt of over $5 million to make payments to the United States
Treasury of investment interest received at yields that exceed the issuer’s tax-exempt borrowing rates. Payments of arbitrage
rebate amounts due under these regulations must be made to the U.S. Treasury every five years. The City’s estimated arbitrage
rebate as of December 31, 2018 is $0 for its tax-exempt bond issues.
Interest Maturity Original Principal Balance Balance Due Within
Issue Name Rates Date Amount Installments 12/31/17 Additions Reductions 12/31/18 One Year
GOVERNMENTAL DEBT:
General Obligation Bonds:
SCORE Public Development Authority 3.00-6.62%1/1/2039 26,732,850 $593,650 - $1,601,150 22,918,300 - (716,100) 22,202,200 739,350
Total General Obligation Bonds
Due Other Governments 26,732,850$ 22,918,300$ -$ (716,100)$ 22,202,200$ 739,350$
CHANGES IN LONG-TERM LIABILITIES DUE TO OTHER GOVERNMENTS
Enterprise Governmental
Funds Funds 12/31/18
Liabilities payable from restricted assets:
Revenue bonds 2,922,900$ -$ 2,922,900$
Long-term bonds payable:
General obligation bonds 186,420 26,000,051 26,186,471
Capital lease - 282,461 282,461
Revenue bonds 22,552,100 - 22,552,100
Public Works Trust Fund loans 5,866,029 3,494,669 9,360,698
Due to Other Governments - 22,202,200 22,202,200
Employee leave benefits 575,713 2,578,327 3,154,040
Other Post Employment Benefits - 16,228,865 16,228,865
Net Pension Liability 4,033,086 8,541,631 12,574,717
Firemen's Pension Liability - 2,973,304 2,973,304
Premium 1,048,113 39,202 1,087,315
Total long-term debt 37,184,361$ 82,340,710$ 119,525,071$
LONG-TERM LIABILITIES RECONCILIATION
City of Auburn: 2018 CAFR Notes to the Financial Statements
80
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 2018
Aggregate Pension Amounts - All Plans
Pension liabilities $ (12,574,716)
Pension assets $ 10,038,834
Deferred outflows of resources $ 3,015,973
Deferred inflows of resources $ (8,258,468)
Pension expense/expenditures $ (55,827)
*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 percent of the
member’s average final compensation (AFC) times the member’s years of service. The AFC is the average of the member’s 24
highest consecutive service months. Members are eligible for retirement from active status at any age with at least 30 years of
service, at age 55 with at least 25 years of service, or at age 60 with at least five years of service. Members retiring from active
status prior to the age of 65 may receive actuarially reduced benefits. Retirement benefits are actuarially reduced to reflect the
choice of a survivor benefit. Other benefits include duty and non-duty disability payments, an optional cost-of-living adjustment
(COLA), and a one-time duty-related death benefit, if found eligible by the Department of Labor and Industries. PERS 1 members
were vested after the completion of five years of eligible service. The plan was closed to new entrants on September 30, 1977.
City of Auburn: 2018 CAFR Notes to the Financial Statements
81
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 2018 were as follows:
PERS Plan 1
Actual Contribution Rates: Employer Employee*
January – August 2018:
PERS Plan 1 7.49% 6.00%
PERS Plan 1 UAAL 5.03%
Administrative Fee 0.18%
Total 12.70% 6.00%
September – December 2018:
PERS Plan 1 7.52% 6.00%
PERS Plan 1 UAAL 5.13%
Administrative Fee 0.18%
Total 12.83% 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 years of service for Plan 2 and 1 percent of AFC for Plan 3. The
AFC is the average of the member’s 60 highest-paid consecutive service months. There is no cap on years of service credit.
Members are eligible for retirement with a full benefit at 65 with at least five years of service credit. Retirement before age 65 is
considered an early retirement. PERS Plan 2/3 members who have at least 20 years of service credit and are 55 years of age or
older, are eligible for early retirement with a benefit that is reduced by a factor that varies according to age for each year before
age 65. PERS Plan 2/3 members who have 30 or more years of service credit and are at least 55 years old can retire under one of
two provisions:
• With a benefit that is reduced by three percent for each year before age 65; or
• With a benefit that has a smaller (or no) reduction (depending on age) that imposes stricter return-to-work rules.
PERS Plan 2/3 members hired on or after May 1, 2013 have the option to retire early by accepting a reduction of five percent for
each year of retirement before age 65. This option is available only to those who are age 55 or older and have at least 30 years of
service credit. PERS Plan 2/3 retirement benefits are also actuarially reduced to reflect the choice of a survivor benefit. Other
PERS Plan 2/3 benefits include duty and non-duty disability payments, a cost-of-living allowance (based on the CPI), capped at
three percent annually and a one-time duty related death benefit, if found eligible by the Department of Labor and Industries.
PERS 2 members are vested after completing five years of eligible service. Plan 3 members are vested in the defined benefit
portion of their plan after ten years of service; or after five years of service if 12 months of that service are earned after age 44.
PERS Plan 3 defined contribution benefits are totally dependent on employee contributions and investment earnings on those
contributions. PERS Plan 3 members choose their contribution rate upon joining membership and have a chance to change rates
upon changing employers. As established by statute, Plan 3 required defined contribution rates are set at a minimum of 5 percent
and escalate to 15 percent with a choice of six options. Employers do not contribute to the defined contribution benefits. PERS
Plan 3 members are immediately vested in the defined contribution portion of their plan.
City of Auburn: 2018 CAFR Notes to the Financial Statements
82
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 2018 were as follows:
PERS Plan 2/3
Actual Contribution Rates: Employer 2/3 Employee 2*
January – August 2018:
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%
September – December 2018:
PERS Plan 2/3 7.52% 7.41%
PERS Plan 1 UAAL 5.13%
Administrative Fee 0.18%
Employee PERS Plan 3 Varies
Total 12.83% 7.41%
* For employees participating in JBM, the contribution rate was 18.45% to 18.53%.
The City’s actual PERS plan contributions were $1,296,482 to PERS Plan 1 and $1,941,592 to PERS Plan 2/3 for the year ended
December 31, 2018.
Law Enforcement Officers’ and Fire Fighters’ Retirement System (LEOFF)
LEOFF membership includes all full-time, fully compensated, local law enforcement commissioned officers, firefighters, and as of
July 24, 2005, emergency medical technicians. LEOFF is comprised of two separate defined benefit plans.
LEOFF Plan 1 provides retirement, disability and death benefits. Retirement benefits are determined per year of service calculated
as a percent of final average salary (FAS) as follows:
• 20+ years of service – 2.0% of FAS
• 10-19 years of service – 1.5% of FAS
• 5-9 years of service – 1% of FAS
The FAS is the basic monthly salary received at the time of retirement, provided a member has held the same position or rank for
12 months preceding the date of retirement. Otherwise, it is the average of the highest consecutive 24 months’ salary within the
last ten years of service. Members are eligible for retirement with five years of service at the age of 50. Other benefits include
duty and non-duty disability payments, a cost-of living adjustment (COLA), and a one-time duty-related death benefit, if found
eligible by the Department of Labor and Industries. LEOFF 1 members were vested after the completion of five years of eligible
service. The plan was closed to new entrants on September 30, 1977.
City of Auburn: 2018 CAFR Notes to the Financial Statements
83
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 2018. Employers paid only the administrative
expense of 0.18 percent of covered payroll.
LEOFF Plan 2 provides retirement, disability and death benefits. Retirement benefits are determined as two percent of the final
average salary (FAS) per year of service (the FAS is based on the highest consecutive 60 months). Members are eligible for
retirement with a full benefit at 53 with at least five years of service credit. Members who retire prior to the age of 53 receive
reduced benefits. If the member has at least 20 years of service and is age 50, the reduction is three percent for each year prior
to age 53. Otherwise, the benefits are actuarially reduced for each year prior to age 53. LEOFF 2 retirement benefits are also
actuarially reduced to reflect the choice of a survivor benefit. Other benefits include duty and non-duty disability payments, a
cost-of-living allowance (based on the CPI), capped at three percent annually and a one-time duty-related death benefit, if found
eligible by the Department of Labor and Industries. LEOFF 2 members are vested after the completion of five years of eligible
service.
Contributions
The LEOFF Plan 2 employer and employee contribution rates are developed by the Office of the State Actuary to fully fund Plan
2. The employer rate included an administrative expense component set at 0.18 percent. Plan 2 employers and employees are
required to pay at the level adopted by the LEOFF Plan 2 Retirement Board.
Effective July 1, 2017, when a LEOFF employer charges a fee or recovers costs for services rendered by a LEOFF 2 member to a
non-LEOFF employer, the LEOFF employer must cover both the employer and state contributions on the LEOFF 2 basic salary
earned for those services.
The LEOFF Plan 2 required contribution rates (expressed as a percentage of covered payroll) for 2018 were as follows:
LEOFF Plan 2
Actual Contribution Rates: Employer Employee
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 $746,370 for the year ended December 31, 2018.
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, 2018, the state contributed $68,152,127 to LEOFF Plan 2. The
amount recognized by the City as its proportionate share of this amount is $453,015.
Actuarial Assumptions
The total pension liability (TPL) for each of the DRS plans was determined using the most recent actuarial valuation completed in
2018 with a valuation date of June 30, 2017. 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 2017 Economic Experience Study.
Additional assumptions for subsequent events and law changes are current as of the 2017 actuarial valuation report. The TPL was
calculated as of the valuation date and rolled forward to the measurement date of June 30, 2018. Plan liabilities were rolled
forward from June 30, 2017, to June 30, 2018, reflecting each plan’s normal cost (using the entry-age cost method), assumed
interest and actual benefit payments.
City of Auburn: 2018 CAFR Notes to the Financial Statements
84
• Inflation: 2.75% total economic inflation; 3.50% salary inflation
• Salary increases: In addition to the base 3.50% salary inflation assumption, salaries are also expected to grow by
promotions and longevity.
• Investment rate of return: 7.4%
Mortality rates were based on the RP-2000 report’s Combined Healthy Table and Combined Disabled Table, published by the
Society of Actuaries. The OSA applied offsets to the base table and recognized future improvements in mortality by projecting
the mortality rates using 100 percent Scale BB. Mortality rates are applied on a generational basis; meaning, each member is
assumed to receive additional mortality improvements in each future year throughout his or her lifetime.
There were changes in methods and assumptions since the last valuation.
• Lowered the valuation interest rate from 7.70% to 7.50% for all systems except LEOFF 2. For LEOFF 2 the valuation interest
rate was lowered from 7.50% to 7.40%.
• Lowered the assumed general salary growth from 3.75% to 3.50% for all systems.
• Lowered assumed inflation from 3.00% to 2.75% for all systems.
• Modified how the valuation software calculates benefits paid to remarried duty-related death survivors of LEOFF 2
members.
• Updated the trend that the valuation software uses to project medical inflation for LEOFF 2 survivors of a duty-related
death, and for certain LEOFF 2 medical-related duty disability benefits.
Discount Rate
The discount rate used to measure the total pension liability for all DRS plans was 7.4 percent.
To determine that rate, an asset sufficiency test included an assumed 7.5 percent long-term discount rate to determine funding
liabilities for calculating future contribution rate requirements. (All plans use 7.5 percent except LEOFF 2, which has assumed 7.4
percent). Consistent with the long-term expected rate of return, a 7.4 percent future investment rate of return on invested assets
was assumed for the test. Contributions from plan members and employers are assumed to continue being made at contractually
required rates (including PERS 2/3, PSERS 2, SERS 2/3, and TRS 2/3 employers, whose rates include a component for the PERS 1,
and TRS 1 plan liabilities). Based on these assumptions, the pension plans’ fiduciary net position was projected to be available to
make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return of 7.4
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 7.4 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: 2018 CAFR Notes to the Financial Statements
85
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, 2018, 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 7% 4.90%
Real Estate 18% 5.80%
Global Equity 32% 6.30%
Private Equity 23% 9.30%
100%
Sensitivity of Net Pension Liability/(Asset)
The table below presents the City’s proportionate share of the net pension liability calculated using the discount rate of 7.4
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 (6.4 percent) or 1-percentage point higher (8.4 percent) than the current rate.
1% Decrease
(6.40%)
Current Discount Rate
(7.40%)
1% Increase
(8.40%)
PERS 1 $ 10,433,375 $ 8,489,752 $ 6,806,182
PERS 2/3 18,684,720 4,084,964 (7,885,207)
LEOFF 1 (1,469,701) (1,847,473) (2,172,713)
LEOFF 2 $ (1,089,298 $ (8,191,361) $ (13,983,920)
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, 2018, the City reported a total pension liability of $2,535,882 for its proportionate share of the net pension liabilities as
follows:
Liability (Asset)
PERS 1 $ 8,489,752
PERS 2/3 4,084,964
LEOFF 1 (1,847,473)
LEOFF 2 $ (8,191,361)
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:
City of Auburn: 2018 CAFR Notes to the Financial Statements
86
LEOFF 1 Asset LEOFF 2 Asset
Employer’s proportionate share
$ (1,847,473)
$ (8,191,361)
State’s proportionate share of
the net pension asset associated
with the employer
(12,496,261)
(5,303,752)
TOTAL $ (14,343,734) $(13,495,113)
At June 30, the City’s proportionate share of the collective net pension liabilities was as follows:
Proportionate
Share 6/30/17
Proportionate Share
6/30/18
Change in
Proportion
PERS 1 0.192614% 0.190096% (0.002518)%
PERS 2/3 0.243488% 0.239249% (0.004239)%
LEOFF 1 0.102451% 0.101761% (0.000690)%
LEOFF 2 0.370954% 0.403472% 0.032518 %
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 2018. Historical data was obtained from a 2011 study by the Office of the State
Actuary (OSA). In fiscal year 2018, 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 2018, the state of Washington contributed 39.30 percent of LEOFF 2 employer contributions pursuant to RCW
41.26.725 and all other employers contributed the remaining 60.70 percent of employer contributions.
The collective net pension liability (asset) was measured as of June 30, 2018, and the actuarial valuation date on which the total
pension liability (asset) is based was as of June 30, 2017, with update procedures used to roll forward the total pension liability to
the measurement date.
Pension Expense
For the year ended December 31, 2018, the City recognized pension expense as follows:
Pension Expense
PERS 1 $ 621,647
PERS 2/3 (61,852)
LEOFF 1 (287,519)
LEOFF 2 (328,104)
TOTAL $ (55,827)
City of Auburn: 2018 CAFR Notes to the Financial Statements
87
Deferred Outflows of Resources and Deferred Inflows of Resources
At December 31, 2018, 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
337,378
Changes of assumptions
Changes in proportion and differences between
contributions and proportionate share of contributions
Contributions subsequent to the measurement date 646,669
TOTAL $ 646,669 $ 337,378
PERS 2/3 Deferred Outflows of
Resources
Deferred Inflows of
Resources
Differences between expected and actual experience $ 500,710 $ 715,202
Net difference between projected and actual investment
earnings on pension plan investments
2,506,723
Changes of assumptions 47,787 1,162,548
Changes in proportion and differences between
contributions and proportionate share of contributions
34,317
153,753
Contributions subsequent to the measurement date 970,038
TOTAL $ 1,552,851 $ 4,538,225
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
149,988
Changes of assumptions
Changes in proportion and differences between contributions
and proportionate share of contributions
Contributions subsequent to the measurement date
TOTAL $ $ 149,988
LEOFF 2 Deferred Outflows of
Resources
Deferred Inflows of
Resources
Differences between expected and actual experience $ 438,795 $ 190,204
Net difference between projected and actual investment
earnings on pension plan investments
1,433,598
Changes of assumptions 4,637 1,175,608
Changes in proportion and differences between
contributions and proportionate share of contributions
433,466
Contributions subsequent to the measurement date 373,020
TOTAL $ 816,452 $ 3,232,877
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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, 2019. 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
2019 $ 14,760 $ (413,907) $ 143 $ (227,253)
2020 (73,753) (847,423) (33,836) (444,308)
2021 (221,311) (1,548,094) (92,156) (899,225)
2022 (57,074) (581,928) (24,140) (363,810)
2023 - (224,052) - (160,567)
Thereafter $ - $ (340,008) $ - $ (694,282)
City of Auburn Fire Relief and Pension Plan
The City is the administrator of the Firemen’s Pension Plan (Plan), which is a closed, single-employer defined benefit pension plan
that was established in conformance with RCW Chapters 41.16 and 41.18. This plan 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 firefighters who retired prior
to March 1, 1970, and excess pension and healthcare benefits of LEOFF for covered firefighters who retired after March 1, 1970.
Benefits and refunds of the defined benefit pension plan are recognized when due and payable in accordance with the Plan. The
Plan does not issue a separate financial report. 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 2018, $79,798 was
received from the state from taxes on fire insurance premiums, and $42,334 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.
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The following table represents the plan aggregate pension amounts for 2018:
Aggregate Pension Amounts – Fire Relief and Pension Plan
Pension liabilities $ (2,973,304)
Deferred outflows of resources $ 0
Deferred inflows of resources $ 0
Pension expense/expenditures $ (113,644)
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 benefit 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, 2017 and
the December 31, 2018 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, 2018 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, 2017 December 31,2018
Discount Rate – municipal bond rate (average rating
AA/Aa or higher)
3.50%
4.00%
Valuation Date January 1, 2017 January 1, 2017
Measurement Date December 31, 2017 December 31, 2018
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
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Total Pension Liability
The following table represents the changes in the total pension liability for 2018:
Fire Relief and Pension Plan Increase (Decrease)
Total Pension Liability
Balances as of December 31, 2017 $ 3,212,435
Changes for the year:
Service cost 0
Interest on total pension liability 108,873
Effect of plan changes 0
Effect of economic/demographic gains or losses 0
Effect of assumptions, changes or inputs (142,719)
Benefit payments * (205,285)
Balances as of December 31, 2018 $ 2,973,304
* 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 4.00%, 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 (3.00%) or 1
percentage point higher (5.00%) than the current rate.
1% Decrease
(3.00%)
Current Discount Rate
(4.00%)
1% Increase
(5.00%)
$ 3,270,383 $ 2,973,304 $ 2,718,536
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, 2017 to
December 31, 2017
January 1, 2018 to
December 31, 2018
Service Cost $ 0 $ 0
Interest on Total Pension Liability 116,957 108,873
Effect of Plan Changes 0 0
Contributions From State Fire Insurance Premium Tax (78,078) (79,798)
Recognition of Deferred Inflows/Outflows of Resources:
Recognition of Economic/Demographic Gains/Losses 0 0
Recognition of Assumption Changes or Inputs 77,612 (142,719)
Pension Expense $ 116,491 $ (113,644)
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Deferred Outflows/Inflows of Resources
As of December 31, 2018, 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:
2019 $0
2020 0
2021 0
2022 0
2023 0
Thereafter 0
NOTE 11 – OTHER POST-EMPLOYMENT BENEFITS
The following table represents the aggregate OPEB amounts for all plans subject to the requirements of GASB Statement 75 for
the year 2018:
Aggregate OPEB Amounts
OPEB Liabilities $ 16,228,865
OPEB Assets $ 0
Deferred outflows of resources $ 0
Deferred inflows of resources $ 0
OPEB expense/expenditures $ (447,545)
Plan Description
The city is the administrator of the Law Enforcement Officer and Fire Fighter(LEOFF) 1 employees plan providing lifetime medical
care. The plan is a single employer, defined benefit, other post-employment benefit plan (OPEB). The plan does not issue a
separate standalone financial report.
Benefits Provided
Effective March 1, 1970, the LEOFF plan was established by the Legislature under Revised Code of Washington (RCW) Chapter
41.26. LEOFF members who joined the system by September 30, 1977 are Plan 1 members. In addition, the City is required to pay
post-employment benefits in accordance with RCW Chapter 41.16; all medical and long term care as long as a disability exists are
covered for any active firefighter hired prior to March 1, 1970. For any retired firefighter hired prior to March 1, 1970, medical and
long term care are covered at the discretion of the Retirement Board. Members retired prior to 1961 for reasons other than duty
disability are not eligible for medical benefits during retirement.
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The City OPEB plan provides medical, prescription drug, dental, Medicare Part B premiums, long-term care, and vision expenses
for retirees. The plan does not cover dependent spouses and children. The City’s cost is reduced by any amounts retirees receive
from Medicare or other health plans.
Funding Policy
The plan is funded on a pay-as-you-go basis from the General Fund and there are no assets accumulated in a qualifying trust.
Membership
As of December 31, 2018, there are 46 retirees and 0 active employees meeting the eligibility requirements of a LEOFF 1 member.
This is considered a closed group with no new members.
Retirees currently receiving benefits 46
Retirees entitled to but not yet receiving benefits 0
Active employees 0
Total 46
OPEB Liability
The Valuation Date is January 1, 2017. This is the date as of which the actuarial valuation was performed. The Measurement Date
is December 31, 2018. This is the date as of which the total OPEB liability under GASB 75 is determined. The Reporting Date is the
Plan’s and City’s fiscal year ending date. Update procedures were used to roll forward the total OPEB liability to the measurement
date.
Assumptions and Other Inputs
A number of assumptions are used in development of the OPEB plan actuarial valuation as discussed below.
GASB 75 requires the discount rate used to measure the Total OPEB Liability (the Actuarial Accrued Liability calculated using the
Individual Entry Age Normal Cost Method) to be a yield or index rate for 20-year, tax exempt general obligation municipal bonds
with an average rating of AA/Aa or higher. The Bond Buyer General Obligation 20-bond municipal bond index for bonds that
mature in 20 years is 4.10% as of December 27, 2018. Rounding this to the nearest ¼% results in a discount rate of 4.00% as of the
December 31, 2018 measurement date.
A medical (healthcare) trend rate of 6.1% for pre-65 retirees and 5.7% for post 65 retirees is assumed and the inflation rate includes
a dental inflation rate of 5% and long-term care inflation rate of 4.5%.
Mortality assumptions are based on the RP-2000 Mortality Table (combined healthy) with generational projection using 100% of
Projection Scale BB. For service retired members, ages are set back one year for males and set forward one year for females. For
disabled members, ages are set forward two years.
Sensitivity Analysis
The following presents the total OPEB liability of the City calculated using the current healthcare cost trend rates as well as what
the City’s total OPEB liability would be if it were calculated using trend rates that are one percentage point lower or one
percentage point higher than the current trend rates.
1% Decrease
(4.70% - 5.10%)
Current Trend Rate
(5.70% - 6.10%)
1% Increase
(6.70% - 7.10%
Total December 31, 2018
OPEB Liability
$ 14,325,796
$ 16,228,865
$ 18,477,507
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The following presents the total OPEB liability of the City calculated using the discount rate of 4.00%, as well as what the City’s
total OPEB liability would be if it were calculated using a discount rate that is one percentage point lower (3.00%) or one
percentage point higher (5.00%) than the current rate.
1% Decrease
(3.00%)
Current Discount Rate
(4.00%)
1% Increase
(5.00%)
Total December 31, 2018
OPEB Liability
$ 18,245,081
$ 16,228,865
$ 14,410,220
The following table represents the changes in total OPEB liability for 2018:
OPEB LEOFF Plan 1 Increase (Decrease)
Total OPEB Liability
Balance as of December 31, 2017 $ 17,472,360
Changes for the Year:
Service Cost 0
Interest on Total OPEB Liability 597,724
Effect of Plan Changes 0
Effect of Economic/Demographic Gains or Losses 0
Effect of Assumptions, Changes or Inputs (1,045,269)
Expected Benefit Payments (795,950)
Balance as of December 31, 2018 $ 16,228,865
For the year ended December 31, 2018, the City recognized an OPEB expense of $ -447,545.
Changes in assumptions that affected measurement of the total OPEB liability since the prior measurement date include changes
in premiums and claims, mortality, and trends.
The City reported no deferred outflows of resources and no deferred inflows of resources related to OPEB.
NOTE 12 – ASSOCIATION OF WASHINGTON CITIES EMPLOYEE BENEFIT TRUST (“Trust”)
Trust Description
The City of Auburn 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
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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, 2018, 257 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 payment of all
covered claims. In 2018, 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.
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”). In 2018, the retiree medical plan subsidy was eliminated, and is noted as
such in this report. 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.
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NOTE 13 – CONSTRUCTION COMMITMENTS
At December 31, 2018, the City had the following contractual obligations on construction projects:
NOTE 14 – CEMETERY ENDOWED CARE FUND
The City maintains one permanent fund known as the cemetery endowed care fund. Paid into this fund is 10% of the base,
pre-tax sales price of each grave, niche or crypt. This fund is irreducible in principal and no part of the income of this fund
shall ever be used for purposes other than those specified upon the creation of the fund.
RCW 68.44.020 restricts the use of endowment net appreciation to endowment care “stipulated in the instrument by which
the fund was established”. For the City, the instrument that established the fund is Auburn City Code section 3.04.080, and
section 3.040.120 governs the use of the fund.
ACC 3.04.120 restricts net interest or income from investments to the care of the lots and in the improvement or
embellishment of the cemetery or the erection or preservation of any buildings or structures, fences or walks, or for the
repair, preservation, erection or renewal of any tomb, monument, grave, stone, fence, railing or other erection in or around
the cemetery. The funds may also be used for planting and cultivating trees, shrubs, flowers or plants in or around the
cemetery. All expenditures of income from the fund must first be authorized by the City Council.
For 2018, of the $34,559 net appreciation on investments, all was available for expenditures. Amounts that are available for
expenditure are reflected as assigned fund balance.
NOTE 15 – JOINT VENTURES / RELATED PARTY
Valley Communications Center
The “Valley Communications Center” was established August 20, 1976, when an Interlocal Agreement was entered into by
four participating municipal corporations: Renton, Kent, Auburn and Tukwila. The provisions and terms of the “Interlocal
Cooperation Act”, pursuant to RCW 39.34, sanction the agreement. The initial duration of the agreement was five years and
thereafter is automatically extended for consecutive two-year periods, unless terminated by one or more of the participating
cities. Any such termination must be in writing and served upon the other cities on or before July 1 in any one year and such
termination shall then become effective on the last day of such year.
On August 4, 1999 the Administration Board of Valley Communications Center voted to include the City of Federal Way as a
full participating member city as of January 1, 2000. The five participating municipal corporations that include the cities of
Renton, Kent, Auburn, Tukwila, and Federal Way on April 17, 2000 entered into a new Interlocal Agreement, pursuant to RCW
39.34, et seq. This agreement reaffirmed Valley Communications Center as a governmental administration agency pursuant
to RCW 39.34.030 (3) (b).
SCHEDULE OF OUTSTANDING CONSTRUCTION OBLIGATIONS
As of December 31, 2018
Amount Outstanding
Traffic projects 157,574$
Street projects 2,483,830
Utilities projects 398,928
Other projects 198,770
Total commitments 3,239,102$
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The purpose of the joint operation, hereafter referred to as Valley Com, is to provide improved consolidated emergency
communications (dispatch) services for police, fire and medical aid to the five participating cities and to the several
subscribing agencies, which include King County Fire Districts #2, #20, #40, #43, #44, #47, Black Diamond Fire Department,
Vashon Island Fire Department, City of Pacific Police and Fire Departments, City of Algona Police Department, City of Black
Diamond Police Department, City of Des Moines Police Department, SeaTac Fire Department, North Highline Fire
Department, and King County EMS Units. In 1988, King County Fire District #1 was annexed to the City of Tukwila. A separate
agreement between Valley Com and the subscribing agencies has been executed, which set forth condition of services and
rates charged.
The participating cities provide the majority of revenues to Valley Com. The method of allocating revenue source was
changed in 1990 to a basis of prior year’s calls with actual first and second quarter and estimated third and fourth quarter
calls. The allocation of prorated financial participation among the five participating cities is the percentage of estimated
dispatched calls attributed to each jurisdiction compared to the total actual and estimated dispatched calls, for the period
for January 1 through December 31. The percentages are applied to the current approved budget, less revenue from
subscribing agencies and all other sources.
The 2018 cost distribution for the five participating cities is as follows:
Dispatchable
Percent
of
Calls Total *
Kent 117,948 26.92%
Renton 90,329 20.62%
Auburn 101,199 23.10%
Tukwila 36,799 8.40%
Federal Way 91,883 20.97%
Total 438,157 100.00%
* Distribution of current year net income is based on these budgeted percentages.
Valley Com is served by an Administration Board composed of the Mayors or designated representatives from the five
participating cities of Renton, Kent, Auburn, Tukwila and Federal Way. The Administration Board is responsible for the
following functions: 1) Budget review and recommendation to the legislative bodies of the participating cities, and budget
adoption after each legislative body has approved the required financial participation for the ensuing year; 2) Approval of
appointment and/or discharge of the Director; 3) Approval of personnel policy and final decisions on all major policy changes;
4) Review and approval of all contracts.
In addition, an Operations Board provides direction and consists of two members of each participating City’s public safety
departments, including the heads of such departments or their designees. The Operations Board performs the following
functions: 1) Oversees the operation of Valley Com, advises and makes recommendations to the Administration Board; 2)
Makes recommendations on Director selection; 3) Presents proposed policies and budget to the Administration Board; 4)
Approves disbursement of funds by the Director.
The Director presents a proposed budget to the Operations Board on or before August 15 of each year. Said budget is then
presented to the Administration Board by September 1 of each year. The Administration Board can make changes to the
proposed Valley Com budget as it finds necessary, but final approval falls to the legislative body of each participating city in
accordance with the provisions of the Interlocal Agreement.
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In August 1993, Valley Com entered into an Interlocal Cooperation Agreement, pursuant to Chapter 39.34 RCW, with the sub-
regions of King County, Seattle and Eastside Public Safety Communications Agency (EPSCA). This agreement governs the
development, acquisition and installation of the 800 MHz emergency radio communications system (system) funded by the
$57 million King County levy.
This agreement provides that upon voluntary termination of any sub-region participation in the system, it surrenders its radio
frequencies, relinquishes its equipment and transfers any unexpended levy proceeds and association equipment
replacement reserves to another sub-region or consortium of sub-regions.
The share of equity belonging to the five participating cities is as follows:
Item Kent Renton Auburn Tukwila
Federal
Way Total
Equity Dec 31, 2017 $ 7,215,101 $ 5,212,721 $ 5,290,137 $2,677,982 $ 4,222,772 $ 24,618,713
Current year change 874,974 670,091 750,724 272,987 681,619 3,250,395
Equity Dec 31, 2018 $ 8,090,075 $ 5,882,812 $ 6,040,861 $ 2,950,969 $ 4,904,391 $ 27,869,108
% of equity 29.03% 21.11% 21.68% 10.59% 17.60%
% of 2018 distribution 26.92% 20.62% 23.10% 8.40% 20.97%
Liabilities are the responsibility of the five participating cities in direct proportion to their equity position.
Complete audited financial statements for Valley Communications Center can be obtained from Valley Communications
Center, 27519 108th Ave SE, Kent, WA 98030, or telephone 253-372-1300.
South Correctional Entity (SCORE)
The South Correctional Entity (SCORE) consolidated correctional facility was established February 25, 2009, when an
Interlocal Agreement (the “Original Interlocal Agreement”) was entered into by seven participating municipal governments,
the “Member Cities” of Auburn, Burien, Des Moines, Federal Way, Renton, SeaTac and Tukwila, under the authority of the
“Interlocal Cooperation Act” (RCW 39.34). This “Original Interlocal Agreement” was amended and restated October 1, 2009
and named the City of Des Moines as the “Host City” and the remaining Member Cities as “Owner Cities”. This interlocal
agreement is known as the “Formation Interlocal Agreement”. Pursuant to a separate “Host City Agreement” dated
October 1, 2009, the Host City will not enjoy the same equity position as the Owner Cities until all debts issued are paid and
the Host City fulfills all of its obligations as outlined in the Host City Agreement. Pursuant to SCORE financial policies, all
unexpected funds or reserve funds shall be distributed based on the percentage of the Member City’s average daily
population at the SCORE Facility for the last three (3) years regardless of its Owner City or Host City status.
SCORE, a governmental administrative agency pursuant to RCW 39.34.030(3), has the power to acquire, construct, own,
operate, maintain, equip, and improve a correctional facility known as the “SCORE Facility” and to provide correctional
services and functions incidental thereto, for the purpose of detaining arrestees and sentenced offenders in the furtherance
of public safety and emergencies within the jurisdiction of the Member Cities. The SCORE Facility may serve the Member
Cities and Subscribing Agencies which are in need of correctional facilities. Any agreement with a Subscribing Agency shall
be in writing and approved by SCORE as provided within the SCORE Formation Interlocal Agreement.
Financing for the acquisition, construction, equipping, and improvement of the SCORE Facility was provided by bonds issued
by the South Correctional Entity Facility Public Development Authority (the “SCORE PDA”), a public development authority
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chartered by the City of Renton pursuant to RCW 35.21.730 through 35.21.755. The SCORE PDA issued $86 million in special
obligation bonds in 2009 (the “Bonds”) to construct, develop, acquire and equip the SCORE Facility. Pursuant to the
Formation Interlocal Agreement and the ordinances of each city, each Owner City (which includes the Cities of Auburn,
Burien, Federal Way, Renton, SeaTac, and Tukwila) is obligated to budget for and pay its share, and only its share, of the
principal of and interest on the Bonds as the same become due and payable. Each Owner City’s obligation to pay its portion
is an irrevocable, unconditional full faith and credit obligation of such Owner City, payable from property taxes levied within
the constitutional and statutory authority provided without a vote of the electors of the Owner City on all of the taxable
property within the Owner City and other sources of revenues available therefor. The following is a summary of the debt
service requirements for the Bonds:
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, 2018 related to 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:
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NOTE 16 – JOINTLY GOVERNED ORGANIZATION / RELATED PARTY
Residents of the cities of Auburn, Algona and Pacific approved in the November 7, 2006 general election the creation of a
regional fire authority pursuant to RCW 52.26. The new regional fire protection service authority, called the Valley Regional
Fire Authority (VRFA), provides first responder fire and emergency medical services to residents of Auburn, Algona and
Pacific. The VRFA is a new municipal corporation, with its own Governing Board, and is legally separate from the three cities
it serves. The Governing Board of the VRFA consists of the Mayors of the three cities within the VRFA service area, as well as
two Councilmembers from each city. Membership on the Governing Board is made by appointment from the city council of
the respective member cities. Effective January 1, 2007, all personnel, assets, equipment and contractual obligations of the
former Auburn Fire Department were transferred to the VRFA. Similar transfers were made by the cities of Algona and
Pacific.
In accordance with the interlocal agreement at time of formation, each member city retained its obligation for LEOFF 1
firefighter and Fire Relief and Pension Plan obligations. During 2018 Auburn paid $9,939, 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 2018 were $129,205. Medical premiums and benefit payments made under the Fire Relief and Pension Plan for 2018 were
$62,303.
NOTE 17 – CONTINGENCIES AND LITIGATIONS
As of December 31, 2018, a number of claims were pending against the City for damages and legal actions. While the outcome
of these actions is uncertain, no uncovered losses are anticipated at this time with these pending claims. In the event of a
liability finding against the City, it is anticipated that any potential adverse judgment against the City also would be subject
to coverage under the City’s general liability insurance.
The City participates in a number of federal and state assisted programs. These grants are subject to audit by the grantors
or their representatives. Such audits could result in requests for reimbursement to grantor agencies for expenditures
disallowed under the terms of the grants. The City’s management believes that such disallowances, if any, will be immaterial.
NOTE 18 – RISK MANAGEMENT & INSURANCE
Risk Management
The City is exposed to various risks of loss such as: theft and damage and destruction of assets, errors and omissions, injuries
or property damage to others, employees’ health, and natural disasters. All risk financing activities are accounted for in the
Insurance internal service fund. To insure against risks of loss the City of Auburn is a member of the Washington Cities
Insurance Authority (WCIA).
Balance Additions Reductions Balance
12/31/2017 12/31/2018
Valley Communication Public Dev Auth -$ -$ -$ -$
SCORE Public Development Authority 22,918,300 - (716,100) 22,202,200
Due to Other Governments 22,918,300 - (716,100) 22,202,200
Valley Communications Center 5,290,137 750,724 - 6,040,861
South Correctional Entity (SCORE)3,147,747 949,658 - 4,097,405
Equity Share 8,437,884 1,700,382 - 10,138,266
Total Investment in Joint Ventures 32,340,466$
Investment in Joint Ventures
City of Auburn: 2018 CAFR Notes to the Financial Statements
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Utilizing Chapter 48.62 RCW (self-insurance regulation) and Chapter 39.34 RCW (Interlocal Cooperation Act), nine cities
originally formed WCIA on January 1, 1981. WCIA was created for the purpose of providing a pooling mechanism for jointly
purchasing insurance, jointly self-insuring, and / or jointly contracting for risk management services. WCIA has a total of 160
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 $16 million in limits above the self-insured layer is provided by reinsurance. Total limits are $20
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 coverage 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.
WCIA is fully funded by its members, who make annual assessments on a prospectively rated basis, as determined by an
outside, independent actuary. The assessment covers loss, loss adjustment, 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. The
funding and allocations for the worker’s compensation program are reviewed by an actuary on an annual basis. The
actuarial study made by Bickmore as of December 31, 2018 projected ultimate loss during 2019 and 2020 program years to
be $602,000 and $627,000, respectively. At December 31, 2018, incurred but not reported and claims payable were
estimated at $1,009,000. At December 31, 2018 fund equity was $1,144,318. The City carriers excess works’ compensation
insurance coverage with a private carrier for losses exceeding $500,00 per occurrence to a maximum indemnity in
occurrence with statutory limits. Claims handling is currently contracted to an independent, qualified third party
administrator (TPA).
City of Auburn: 2018 CAFR Notes to the Financial Statements
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The Workers Compensation claims liability includes an estimated amount for claims that have been incurred but not
reported (IBNR). Reported claims liabilities are based on the requirements of GABS 10, which requires that a liability for
claims be reported if information prior to the issuance of the financial statements indicates that it is probable that a
liability has been incurred at the date of the financial statements and the amount of the loss can be reasonable estimated.
Changes in the Workers Compensation self-insurance fund claims liabilities in 2017 and 2018 were:
CHANGES OF ESTIMATED CLAIMS LIABILITIES FOR 2018 AND 2017
Workers Compensation
2018 2017
Beg. of Year Claims Liabilities $1,055,000 $0
Less: Claim Payments (134,255) (90,786)
Plus: Claims and Changes in Estimates 88,255 1,145,786
End of Year Claims Liabilities $1,009,000 $1,055,000
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 twelve-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 the 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, 2018.
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 city’s portion of the property tax abated during
the fiscal year 2018 was $37,502.
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
parking. 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. The city’s portion of the property tax abated during the fiscal year 2018 was $42,95
City of Auburn: 2018 CAFR Notes to the Financial Statements
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NOTE 20 – CHANGE IN ACCOUNTING PRINCIPLE
The City of Auburn implemented Governmental Accounting Standards Board (GASB) Statement 75, Accounting and Financial
Reporting for Postemployment Benefits Other Than Pensions. The City previously reported its OPEB obligation under the
provisions of GASB Statement 45, Accounting and Financial Reporting by Employers for Post-Employment Benefits Other Than
Pensions. This change in accounting principle results in a $8,334,375 reduction in governmental activities net position.
In addition, the City has implemented GASB Statement 10, Accounting and Financial Reporting for Risk Financing and Related
Insurance Issues for its Workers Compensation Self Insurance Fund. This change in accounting principle results in a $1,055,000
reduction in governmental activities net position.
City of Auburn: 2018 CAFR Required Supplemental Information
103
REQUIRED SUPPLEMENTARY INFORMATION
Schedule of Proportionate Share of the Net Pension Liability
As of June 30, 2018
Last 10 Fiscal Years*
PERS 1 2018 2017 2016 2015
Employer's proportion of the net pension liability (asset)0.190096%0.192614%0.194185%0.192878%
Employer's proportionate share of the net pension liability (asset)8,489,752$ 9,139,685$ 10,428,649$ 10,089,313$
Covered payroll 192,351$ 181,521$ 212,906$ 328,015$
Employer's proportionate share of the net pension liability as a percentage of
its covered payroll 4413.68%5035.06%4898.24%3075.87%
Plan fiduciary net position as a percentage of the total pension liability 63.22%61.24%57.03%59.10%
PERS 2/3 2018 2017 2016 2015
Employer's proportion of the net pension liability (asset)0.239249%0.243488%0.247760%0.241739%
Employer's proportionate share of the net pension liability (asset)4,084,964$ 8,460,044$ 12,223,580$ 8,637,472$
Covered payroll 24,674,226$ 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 16.56%35.39%53.77%40.25%
Plan fiduciary net position as a percentage of the total pension liability 95.77%90.97%85.82%89.20%
LEOFF 1 2018 2017 2016 2015
Employer's proportion of the net pension liability (asset)0.101761%0.102451%0.101574%0.103718%
Employer's proportionate share of the net pension liability (asset)(1,847,473)$ (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%0.00%
Plan fiduciary net position as a percentage of the total pension liability 144.42%136.00%123.74%127.36%
LEOFF 2 2018 2017 2016 2015
Employer's proportion of the net pension liability (asset)0.403472%0.370954%0.359661%0.354511%
Employer's proportionate share of the net pension liability (asset)(8,191,361)$ (5,147,640)$ (2,091,896)$ (2,193,486)$
State's proportionate share of the net pension liability (asset) associated with
the employer (5,303,752)$ (3,339,178)$ (1,363,764)$ (1,450,178)$
Total (13,495,113)$ (8,486,818)$ (3,455,660)$ (3,643,664)$
Covered payroll 12,697,917$ 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 -64.51%-44.29%-19.10%-21.22%
Plan fiduciary net position as a percentage of the total pension liability 118.50%113.40%106.04%111.67%
City of Auburn: 2018 CAFR Required Supplemental Information
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REQUIRED SUPPLEMENTARY INFORMATION
Schedule of Proportionate Share of the Net Pension Liability
As of June 30, 2018
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: 2018 CAFR Required Supplemental Information
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REQUIRED SUPPLEMENTARY INFORMATION
Schedule of Employer Contributions
As of December 31 2018
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 2018 2017 2016 2015
Statutorily or contractually required contributions 15,868$ 22,545$ 20,088$ 30,642$
Contributions in relation to the statutorily or contractually required contributions (15,868)$ (22,545)$ (20,088)$ (30,642)$
Contribution deficiency (excess)-$ -$ -$ -$
Covered payroll 124,947$ 188,486$ 179,680$ 306,408$
Contributions as a percentage of covered payroll 12.70%11.96%11.18%10.00%
PERS 2/3 2018 2017 2016 2015
Statutorily or contractually required contributions 3,222,237$ 2,908,411$ 2,608,360$ 2,258,109$
Contributions in relation to the statutorily or contractually required contributions (3,222,237)$ (2,908,411)$ (2,608,360)$ (2,258,109)$
Contribution deficiency (excess)-$ -$ -$ -$
Covered payroll 25,087,758$ 24,350,435$ 23,330,702$ 22,130,501$
Contributions as a percentage of covered payroll 12.84%11.94%11.18%10.20%
LEOFF 2 2018 2017 2016 2015
Statutorily or contractually required contributions 708,333$ 639,662$ 594,665$ 551,812$
Contributions in relation to the statutorily or contractually required contributions (708,333)$ (639,662)$ (594,665)$ (551,812)$
Contribution deficiency (excess)-$ -$ -$ -$
Covered payroll 13,044,797$ 11,992,821$ 11,370,216$ 10,553,437$
Contributions as a percentage of covered payroll 5.43%5.33%5.23%5.23%
City of Auburn: 2018 CAFR Required Supplemental Information
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REQUIRED SUPPLEMENTARY INFORMATION
Schedule of Changes in Total Pension Liability & Related Ratios
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 3.50% as of December 31, 2017
to 4.00% as of December 31, 2018.
Significant methods and assumptions used in calculating the actuarial determined contribution are presented in Note 10.
2018 2017 2016 2015 2014 2013 2012 2011 2010 2009
Total Pension Liability - Beginning 3,212,435$ 3,218,004$ 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
Interest on Total Pension Liability 108,873 116,957 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
Effect of Economic/Demographic Gains (Losses)- - N/A N/A N/A N/A N/A N/A N/A N/A
Effect of Assumption Changes or Inputs (142,719) 77,612 N/A N/A N/A N/A N/A N/A N/A N/A
Benefit Payments (205,285) (200,138) N/A N/A N/A N/A N/A N/A N/A N/A
Net Change in Total Pension Liability (239,131) (5,569) N/A N/A N/A N/A N/A N/A N/A N/A
Total Pension Liability - Ending 2,973,304$ 3,212,435$ 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
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: 2018 CAFR Required Supplemental Information
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REQUIRED SUPPLEMENTARY INFORMATION
Schedule of Changes in Total OPEB Liability and Related Ratios
Firemen’s Relief and Pension Plan and LEOFF 1 Employees
For the Year Ended December 31
Last 10 Fiscal Years*
*The City implemented GASB Statement No. 75 in fiscal year 2018. 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 in paragraph 4 of GASB 75 to pay related benefits.
The effect of assumption changes or inputs is the result of a change in the discount rate from 3.50% as of December 31, 2017
to 4.00% as of December 31, 2018.
Significant methods and assumptions used in calculating the actuarial determined contribution are presented in Note 10.
2018 2017 2016 2015 2014 2013 2012 2011 2010 2009
Total OPEB Liability - Beginning 17,472,360$ 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 OPEB Liability 597,724 N/A N/A N/A N/A N/A N/A N/A N/A N/A
Changes of Benefit Terms - 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 (1,045,269) N/A N/A N/A N/A N/A N/A N/A N/A N/A
Expected Benefit Payments (795,950) N/A N/A N/A N/A N/A N/A N/A N/A N/A
Total Pension Liability - Ending 16,228,865$ 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: 2018 CAFR Required Supplemental Information
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City of Auburn: 2018 CAFR Fund Financial Statements and Schedules
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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: 2018 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 17,621,091$ 20,237$ 934,183$ 1,896,829$ 20,472,340$
Receivables:
Other Receivables 337,152 - - - 337,152
Special Assessments - 4,950 - - 4,950
Due From Other Governmental Units 730,696 - 109,557 - 840,253
Total Assets 18,688,939 25,187 1,043,740 1,896,829 21,654,695
LIABILITIES, DEFERRED INFLOWS AND FUND BALANCES:
Liabilities:
Current Payables 1,083,279 - 45,849 - 1,129,128
Total Liabilities 1,083,279 - 45,849 - 1,129,128
Deferred Inflow of Resources:
Unavailable Revenue-Special Assessments - 4,950 - - 4,950
Total Deferred Inflow of Resources - 4,950 - - 4,950
Fund Balances:
Nonspendable - - - 1,775,453 1,775,453
Restricted 14,192,526 5,386 615,903 - 14,813,815
Committed 3,079,656 - - - 3,079,656
Assigned 333,478 14,851 381,988 121,376 851,693
Total Fund Balances 17,605,660 20,237 997,891 1,896,829 20,520,617
Total Liabilities, Deferred Inflows and Fund
Balances 18,688,939$ 25,187$ 1,043,740$ 1,896,829$ 21,654,695$
December 31, 2018
City of Auburn, Washington
COMBINING BALANCE SHEET
NON-MAJOR GOVERNMENT FUNDS
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Total Total Total Total Total
Nonmajor Nonmajor Nonmajor Nonmajor Nonmajor
Special Revenue Debt Service Capital Projects Permanent Governmental
REVENUES:
Taxes:
Property -$ -$ 139,172$ -$ 139,172$
Retail Sales & Use 2,309,617 250,610 - - 2,560,227
Interfund Utility 650,358 - - - 650,358
Utility 1,382,094 - - - 1,382,094
Excise 127,808 - - - 127,808
Other 85,048 - - - 85,048
Intergovernmental 2,422,832 474,926 109,557 - 3,007,315
Charges for Services 1,064,578 - 5,863 58,319 1,128,760
Special Assessments - 2,210 - - 2,210
Investment Earnings 332,723 1,923 20,114 34,559 389,319
Miscellaneous 261,900 598 50,627 - 313,125
Total Revenues 8,636,958 730,267 325,333 92,878 9,785,436
EXPENDITURES:
Current:
Security of Persons & Property 263,251 - - - 263,251
Transportation 7,712,037 - - - 7,712,037
Economic Environment 1,101,465 - - - 1,101,465
Debt Service:
Principal - 1,418,132 - - 1,418,132
Interest - 1,507,993 - - 1,507,993
Capital Outlay - - 1,244,699 - 1,244,699
Total Expenditures 9,076,753 2,926,125 1,244,699 - 13,247,577
Excess (Deficiency) of Revenues
Over (Under) Expenditures (439,795) (2,195,858) (919,366) 92,878 (3,462,141)
OTHER FINANCING SOURCES (USES):
Insurance Recoveries - - 97,435 - 97,435
Transfers In (Note 5)1,749,920 2,194,994 426,824 - 4,371,738
Transfers Out (Note 5)(921,735) - - (7,558) (929,293)
Total Other Financing Sources (Uses)828,185 2,194,994 524,259 (7,558) 3,539,880
Net Change in Fund Balances 388,390 (864) (395,107) 85,320 77,739
Fund Balances - Beginning 17,217,270 21,101 1,392,998 1,811,509 20,442,878
Fund Balances - Ending 17,605,660$ 20,237$ 997,891$ 1,896,829$ 20,520,617$
City of Auburn, Washington
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
NON-MAJOR GOVERNMENT FUNDS
For the Year Ended December 31, 2018
City of Auburn: 2018 CAFR Fund Financial Statements and Schedules
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City of Auburn: 2018 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.
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Hotel/Arterial Housing
Local Motel Street Drug Community
Streets Tax Preservation Forfeiture Development
ASSETS:
Cash and Cash Equivalents 2,879,778$ 226,418$ 1,454,436$ 481,381$ 29,610$
Receivables:
Other Receivables - - 337,152 - -
Due From Other Governmental Units - - 618,926 5,979 105,791
Total Assets 2,879,778 226,418 2,410,514 487,360 135,401
LIABILITIES AND FUND BALANCES:
Liabilities:
Current Payables 79,821 28,743 366,055 30,166 92,497
Total Liabilities 79,821 28,743 366,055 30,166 92,497
Fund Balances:
Restricted - 197,675 1,510,377 448,351 42,904
Committed 2,584,603 - 495,053 - -
Assigned 215,354 - 39,029 8,843 -
Total Fund Balances 2,799,957 197,675 2,044,459 457,194 42,904
Total Liabilities and Fund Balances 2,879,778$ 226,418$ 2,410,514$ 487,360$ 135,401$
City of Auburn, Washington
COMBINING BALANCE SHEET
NON-MAJOR SPECIAL REVENUE FUNDS
December 31, 2018
City of Auburn: 2018 CAFR Fund Financial Statements and Schedules
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Total
Business Nonmajor
Recreational Improvement Mitigation Special Revenue
Trails Area Fees Funds
65,876$ 121,310$ 12,362,282$ 17,621,091$
- - - 337,152
- - - 730,696
65,876 121,310 12,362,282 18,688,939
- 5,497 480,500 1,083,279
- 5,497 480,500 1,083,279
64,726 113,295 11,815,198 14,192,526
- - - 3,079,656
1,150 2,518 66,584 333,478
65,876 115,813 11,881,782 17,605,660
65,876$ 121,310$ 12,362,282$ 18,688,939$
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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 2,309,617$ -$ -$ -$ -$
Interfund Utility - - 650,358 - -
Utility - - 1,382,094 - -
Excise - 127,808 - - -
Other - - - - -
Intergovernmental - - 1,510,377 - 905,255
Charges for Services - 345 - 14,648 -
Investment Earnings 65,988 4,135 39,029 8,843 -
Miscellaneous - - - 261,900 -
Total Revenues 2,375,605 132,288 3,581,858 285,391 905,255
EXPENDITURES:
Current:
Security of Persons and Property - - - 213,251 -
Transportation 2,668,681 - 5,043,356 - -
Economic Environment - 127,984 - - 907,255
Total Expenditures 2,668,681 127,984 5,043,356 213,251 907,255
Excess (Deficiency) of Revenues
Over (Under) Expenditures (293,076) 4,304 (1,461,498) 72,140 (2,000)
OTHER FINANCING SOURCES (USES):
Transfers In (Note 5)150,000 - 1,466,120 - -
Transfers Out (Note 5)(317) (7,000) - - -
Total Other Financing Sources (Uses)149,683 (7,000) 1,466,120 - -
Net Change in Fund Balances (143,393) (2,696) 4,622 72,140 (2,000)
Fund Balances - Beginning 2,943,350 200,371 2,039,837 385,054 44,904
Fund Balances - Ending 2,799,957$ 197,675$ 2,044,459$ 457,194$ 42,904$
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, 2018
City of Auburn: 2018 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
-$ -$ -$ 2,309,617$
- - - 650,358
- - - 1,382,094
- - - 127,808
- 85,048 - 85,048
7,200 - - 2,422,832
- - 1,049,585 1,064,578
1,150 2,518 211,060 332,723
- - - 261,900
8,350 87,566 1,260,645 8,636,958
- - 50,000 263,251
- - - 7,712,037
- 66,226 - 1,101,465
- 66,226 50,000 9,076,753
8,350 21,340 1,210,645 (439,795)
- - 133,800 1,749,920
- - (914,418) (921,735)
- - (780,618) 828,185
8,350 21,340 430,027 388,390
57,526 94,473 11,451,755 17,217,270
65,876$ 115,813$ 11,881,782$ 17,605,660$
City of Auburn: 2018 CAFR Fund Financial Statements and Schedules
118
Variance with
Final Final Budget
Original Adopted Actual Positive
(GAAP Basis)(GAAP Basis)Results (Negative)
REVENUES:
Taxes:
Retail Sales and Use Tax 1,750,000$ 1,750,000$ 2,309,617$ 559,617$
Investment Earnings 9,100 9,100 65,988 56,888
Total Revenues 1,759,100 1,759,100 2,375,605 616,505
EXPENDITURES:
Current:
Transportation 2,417,754 3,591,054 2,668,681 922,373
Total Expenditures 2,417,754 3,591,054 2,668,681 922,373
Excess (Deficiency) of Revenues
Over (Under) Expenditures (658,654) (1,831,954) (293,076) 1,538,878
OTHER FINANCING SOURCES (USES):
Transfers In (Note 5)150,000 150,000 150,000 -
Transfers Out (Note 5)(516) (516) (317) 199
Total Other Financing Sources (Uses)149,484 149,484 149,683 199
Net Change in Fund Balances (509,170) (1,682,470) (143,393) 1,539,077
Fund Balances - Beginning 893,143 2,943,350 2,943,350 -
Fund Balances - Ending 383,973$ 1,260,880$ 2,799,957$ 1,539,077$
Budget Amounts
For the Year Ended December 31, 2018
City of Auburn, Washington
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
LOCAL STREETS SPECIAL REVENUE FUND
City of Auburn: 2018 CAFR Fund Financial Statements and Schedules
119
Variance with
Final Final Budget
Original Adopted Actual Positive
(GAAP Basis) (GAAP Basis)Results (Negative)
REVENUES:
Taxes:
Excise 113,300$ 113,300$ 127,808$ 14,508$
Charges for Services - - 345 345
Investment Earnings 400 400 4,135 3,735
Total Revenues 113,700 113,700 132,288 18,588
EXPENDITURES:
Current:
Economic Environment 103,400 209,500 127,984 81,516
Total Expenditures 103,400 209,500 127,984 81,516
Excess (Deficiency) of Revenues
Over (Under) Expenditures 10,300 (95,800) 4,304 100,104
OTHER FINANCING SOURCES (USES):
Transfers Out (Note 5)(10,300) (10,300) (7,000) 3,300
Total Other Financing sources and Uses (10,300) (10,300) (7,000) 3,300
Net Change in fund Balances -(106,100) (2,696) 103,404
Fund Balances - Beginning 84,044 200,371 200,371 -
Fund Balances - Ending 84,044$ 94,271$ 197,675$ 103,404$
Budget Amounts
For the Year Ended December 31, 2018
City of Auburn, Washington
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
HOTEL/MOTEL TAX SPECIAL REVENUE FUND
City of Auburn: 2018 CAFR Fund Financial Statements and Schedules
120
Variance with
Final Final Budget
Original Adopted Actual Positive
(GAAP Basis) (GAAP Basis)Results (Negative)
REVENUES:
Taxes:
Interfund Utility 665,900$ 700,000$ 650,358$ (49,642)$
Utility 1,395,600 1,395,600 1,382,094 (13,506)
Intergovernmental 1,000,940 1,511,840 1,510,377 (1,463)
Investment Earnings 4,900 4,900 39,029 34,129
Total Revenues 3,067,340 3,612,340 3,581,858 (30,482)
EXPENDITURES:
Current:
Transportation 2,880,440 6,957,840 5,043,356 1,914,484
Total Expenditures 2,880,440 6,957,840 5,043,356 1,914,484
Excess (Deficiency) of Revenues
Over (Under) Expenditures 186,900 (3,345,500) (1,461,498) 1,884,002
OTHER FINANCING SOURCES (USES):
Transfers In (Note 5)-2,212,400 1,466,120 (746,280)
Transfers Out (Note 5)-(46,100) -46,100
Total Other Financing Sources (Uses)-2,166,300 1,466,120 (700,180)
Net Change in Fund Balances 186,900 (1,179,200) 4,622 1,183,822
Fund Balances - Beginning 366,008 2,039,837 2,039,837 -
Fund Balances - Ending 552,908$ 860,637$ 2,044,459$ 1,183,822$
Budget Amounts
For the Year Ended December 31, 2018
City of Auburn, Washington
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
ARTERIAL STREET PRESERVATION SPECIAL REVENUE FUND
City of Auburn: 2018 CAFR Fund Financial Statements and Schedules
121
Variance with
Final Final Budget
Original Adopted Actual Positive
(GAAP Basis)(GAAP Basis)Results (Negative)
REVENUES:
Taxes:
Intergovernmental 17,000$ 17,000$ -$ (17,000)$
Charges for Services 14,000 14,000 14,648 648
Investment Earnings 1,100 1,100 8,843 7,743
Miscellaneous 55,000 55,000 261,900 206,900
Total Revenues 87,100 87,100 285,391 198,291
EXPENDITURES:
Current:
Security of Persons & Property 253,221 271,921 213,251 58,670
Total Expenditures 253,221 271,921 213,251 58,670
Excess (Deficiency of Revenues
Over (Under) Expenditures (166,121) (184,821) 72,140 256,961
Net Change in Fund Balances (166,121) (184,821) 72,140 256,961
Fund Balances - Beginning 193,981 385,054 385,054 -
Fund Balances - Ending 27,860$ 200,233$ 457,194$ 256,961$
Budget Amounts
For the Year Ended December 31, 2018
City of Auburn, Washington
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
DRUG FORFEITURE SPECIAL REVENUE FUND
City of Auburn: 2018 CAFR Fund Financial Statements and Schedules
122
Variance with
Final Final Budget
Original Adopted Actual Positive
(GAAP Basis) (GAAP Basis)Results (Negative)
REVENUES:
Intergovernmental 460,000$ 1,201,200$ 905,255$ (295,945)$
Total Revenues 460,000 1,201,200 905,255 (295,945)
EXPENDITURES:
Current:
Economic Environment 468,446 1,209,646 907,255 302,391
Total Expenditures 468,446 1,209,646 907,255 302,391
Excess (Deficiency) of Revenues
Over (Under) Expenditures (8,446) (8,446) (2,000) 6,446
Net Change in Fund Balances (8,446) (8,446) (2,000) 6,446
Fund Balances - Beginning 52,455 44,904 44,904 -
Fund Balances - Ending 44,009$ 36,458$ 42,904$ 6,446$
Budget Amounts
For the Year Ended December 31, 2018
City of Auburn, Washington
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
HOUSING & COMMUNITY DEVELOPMENT SPECIAL REVENUE FUND
City of Auburn: 2018 CAFR Fund Financial Statements and Schedules
123
Variance with
Final Final Budget
Original Adopted Actual Positive
(GAAP Basis)(GAAP Basis)Results (Negative)
REVENUES:
TAXES:
Intergovernmental 7,200$ 7,200$ 7,200$ -$
Investment Earnings 140 140 1,150 1,010
Total Revenues 7,340 7,340 8,350 1,010
Excess (Deficiency) of Revenues
Over (Under) Expenditures 7,340 7,340 8,350 1,010
Net Change in Fund Balances 7,340 7,340 8,350 1,010
Fund Balances - Beginning 56,998 57,526 57,526 -
Fund Balances - Ending 64,338$ 64,866$ 65,876$ 1,010$
Budget Amounts
For the Year Ended December 31, 2018
City of Auburn, Washington
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
RECREATION TRAILS SPECIAL REVENUE FUND
City of Auburn: 2018 CAFR Fund Financial Statements and Schedules
124
Variance with
Final Final Budget
Original Adopted Actual Positive
(GAAP Basis) (GAAP Basis)Results (Negative)
REVENUES:
Taxes:
Other 55,000$ 55,000$ 85,048$ 30,048$
Investment Earnings 200 200 2,518 2,318
Total Revenues 55,200 55,200 87,566 32,366
EXPENDITURES:
Current:
Economic Environment 55,000 90,000 66,226 23,774
Total Expenditures 55,000 90,000 66,226 23,774
Excess (Deficiency) of Revenues
Over (Under) Expenditures 200 (34,800) 21,340 56,140
Net Change in Fund Balances 200 (34,800) 21,340 56,140
Fund Balances - Beginning 48,716 94,473 94,473 -
Fund Balances - Ending 48,916$ 59,673$ 115,813$ 56,140$
Budget Amounts
For the Year Ended December 31, 2018
City of Auburn, Washington
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
BUSINESS IMPROVEMENT AREA SPECIAL REVENUE FUND
City of Auburn: 2018 CAFR Fund Financial Statements and Schedules
125
Variance with
Final Final Budget
Original Adopted Actual Positive
(GAAP Basis)(GAAP Basis)Results (Negative)
REVENUES:
Taxes:
Investment Earnings 20,500$ 20,500$ 158,754$ 138,254$
Total Revenues 20,500 20,500 158,754 138,254
Excess (Deficiency) of Revenues
Over (Under) Expenditures 20,500 20,500 158,754 138,254
OTHER FINANCING SOURCES (USES):
Transfers In (Note 5)- 1,500,000 1,500,000 -
Transfers Out (Note 5)(250,000) (1,592,200) (1,300,000) 292,200
Total Other Financing Sources (Uses)(250,000) (92,200) 200,000 292,200
Net Change in Fund Balances (229,500) (71,700) 358,754 430,454
Fund Balances - Beginning 7,366,699 9,799,312 9,799,312 -
Fund Balances - Ending 7,137,199$ 9,727,612$ 10,158,066$ 430,454$
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 (10,158,066)
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, 2018
City of Auburn, Washington
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
CUMULATIVE RESERVE SPECIAL REVENUE FUND
City of Auburn: 2018 CAFR Fund Financial Statements and Schedules
126
Variance with
Final Final Budget
Original Adopted Actual Positive
(GAAP Basis) (GAAP Basis)Results (Negative)
REVENUES:
TAXES:
Charges for Services 1,512,000$ 1,512,000$ 1,049,585$ (462,415)$
Investment Earnings 8,200 8,200 211,060 202,860
Total Revenues 1,520,200 1,520,200 1,260,645 (259,555)
EXPENDITURES:
Current:
Security of Person & Property 50,000 50,000 50,000 -
Total Expenditures 50,000 50,000 50,000 -
Excess (Deficiency) of Revenues
Over (Under) Expenditures 1,470,200 1,470,200 1,210,645 (259,555)
OTHER FINANCING SOURCES (USES):
Transfers In (Note 5)-400,000 133,800 (266,200)
Transfers Out (Note 5)(1,169,817) (2,995,917) (914,418) 2,081,499
Total Other Financing Sources (Uses)(1,169,817) (2,595,917) (780,618) 1,815,299
Net Change in Fund Balances 300,383 (1,125,717) 430,027 1,555,744
Fund Balances - Beginning 4,429,481 11,451,755 11,451,755 -
Fund Balances - Ending 4,729,864$ 10,326,038$ 11,881,782$ 1,555,744$
Budget Amounts
For the Year Ended December 31, 2018
City of Auburn, Washington
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
MITIGATION SPECIAL REVENUE FUND
City of Auburn: 2018 CAFR Fund Financial Statements and Schedules
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.
City of Auburn: 2018 CAFR Fund Financial Statements and Schedules
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 -$ -$ 14,832$ 19$ 1,633$ 3,753$ 20,237$
Special Assessments - - - - - 4,950 4,950
Total Assets - - 14,832 19 1,633 8,703 25,187
LIABILITIES, DEFERRED INFLOWS AND FUND BALANCES:
Deferred Inflows of Resources:
Unavailable Revenue - Special Assessments - - - - - 4,950 4,950
Total Deferred Inflows of Resources - - - - - 4,950 4,950
Fund Balances:
Restricted - - - - 1,633 3,753 5,386
Assigned - - 14,832 19 - - 14,851
Total Fund Balances - - 14,832 19 1,633 3,753 20,237
Total Liabilities, Deferred Inflows and
Fund Balances -$ -$ 14,832$ 19$ 1,633$ 8,703$ 25,187$
City of Auburn, WashingtonCOMBINING BALANCE SHEET
NON-MAJOR DEBT SERVICE FUNDS
December 31, 2018
City of Auburn: 2018 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 -$ -$ 250,610$ -$ -$ -$ 250,610$
Special Assessments - - - - - 2,210 2,210
Intergovernmental - 360,399 114,527 - - - 474,926
Investment Earnings - - 1,785 - 30 108 1,923
Miscellanous - - - - - 598 598
Total Revenues - 360,399 366,922 - 30 2,916 730,267
EXPENDITURES:
Debt Service:
Principal 270,000 575,000 240,000 326,560 - 6,572 1,418,132
Interest 12,150 1,100,120 349,595 45,454 - 674 1,507,993
Total Expenditures 282,150 1,675,120 589,595 372,014 - 7,246 2,926,125
Excess (Deficiency) of Revenues
Over (Under) Expenditures (282,150) (1,314,721) (222,673) (372,014) 30 (4,330) (2,195,858)
OTHER FINANCING SOURCES (USES):
Transfers In (Note 5)282,150 1,314,721 226,109 372,014 - - 2,194,994
Total Other Financing Sources (Uses)282,150 1,314,721 226,109 372,014 - - 2,194,994
Net Change in Fund Balances - - 3,436 - 30 (4,330) (864)
Fund Balances - Beginning - - 11,396 19 1,603 8,083 21,101
Fund Balances - Ending -$ -$ 14,832$ 19$ 1,633$ 3,753$ 20,237$
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, 2018
City of Auburn: 2018 CAFR Fund Financial Statements and Schedules
130
City of Auburn: 2018 CAFR Fund Financial Statements and Schedules
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.
City of Auburn: 2018 CAFR Fund Financial Statements and Schedules
132
Municipal Nonmajor
Park Loc al Capital Project
Construction Revitalization Funds
ASSETS:
Cash and Cash Equivalents 552,195$ 381,988$ 934,183$
Due From Other Governmental Units 109,557 - 109,557
Total Assets 661,752 381,988 1,043,740
LIABILITIES AND FUND BALANCES:
Liabilities:
Current Payables 45,849 - 45,849
Total Liabilities 45,849 - 45,849
Fund Balances:
Restricted 615,903 - 615,903
Assigned - 381,988 381,988
Total Fund Balances 615,903 381,988 997,891
Total Liabilities and Fund Balances 661,752$ 381,988$ 1,043,740$
City of Auburn, Washington
COMBINING BALANCE SHEET
CAPITAL PROJECT FUNDS
December 31, 2018
City of Auburn: 2018 CAFR Fund Financial Statements and Schedules
133
Municipal Nonmajor
Park Local Capital Project
Construction Revitalization Funds
REVENUES:
Taxes:
Property 139,172$ -$ 139,172$
Intergovernmental 109,557 - 109,557
Charges for Services 5,863 - 5,863
Investment Earnings 13,092 7,022 20,114
Miscellaneous 50,627 - 50,627
Total Revenues 318,311 7,022 325,333
EXPENDITURES:
Capital Outlay 1,244,699 - 1,244,699
Total Expenditures 1,244,699 - 1,244,699
Excess (Deficiency) of Revenues
Over (Under) Expenditures (926,388) 7,022 (919,366)
OTHER FINANCING SOURCES (USES):
Insurance Recoveries - Capital Assets 97,435 - 97,435
Transfers In (Note 5)426,824 - 426,824
Total Other Financing Sources (Uses)524,259 - 524,259
Net Change in Fund Balances (402,129) 7,022 (395,107)
Fund Balances - Beginning 1,018,032 374,966 1,392,998
Fund Balances - Ending 615,903$ 381,988$ 997,891$
City of Auburn, Washington
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
CAPITAL PROJECT FUNDS
For the Year Ended December 31, 2018
City of Auburn: 2018 CAFR Fund Financial Statements and Schedules
134
City of Auburn: 2018 CAFR Fund Financial Statements and Schedules
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: 2018 CAFR Fund Financial Statements and Schedules
136
Cemetery
Endowed
Care
ASSETS:
Cash and Cash Equivalents
Non-Expendable Trust 1,896,829$
Total Assets 1,896,829
LIABILITIES AND FUND BALANCES:
FUND BALANCES:
Nonspendable 1,775,453
Assigned 121,376
Total Fund Balances 1,896,829
Total Liabilities and Fund Balances 1,896,829$
City of Auburn, Washington
BALANCE SHEET
PERMANENT FUND
December 31, 2018
City of Auburn: 2018 CAFR Fund Financial Statements and Schedules
137
Cemetery
Endowed
Care
REVENUES:
Increase to Endowment from Lot Sales 58,319$
Investment Earnings 34,559
Total Revenues 92,878
EXPENDITURES:
Excess (Deficiency) of Revenues
Over (Under) Expenditures 92,878
OTHER FINANCING SOURCES (USES):
Transfers Out (Note 5)(7,558)
Total Other Financing Sources (Uses)(7,558)
Net Change in Fund Balance 85,320
Fund Balance - Beginning 1,811,509
Fund Balance - Ending 1,896,829$
For the Year Ended December 31, 2018
City of Auburn, Washington
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
PERMANENT FUND
City of Auburn: 2018 CAFR Fund Financial Statements and Schedules
138
City of Auburn: 2018 CAFR Fund Financial Statements and Schedules
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.
City of Auburn: 2018 CAFR Fund Financial Statements and Schedules
140
Total
Nonmajor
Enterprise
Airport Cemetery Funds
ASSETS:
Current Assets:
Cash and Cash Equivalents 995,558$ 990,407$ 1,985,965$
Restricted Cash:
Customer Deposits 100,336 - 100,336
Customer Accounts 430 - 430
Due From Other Governmental Units 51,762 - 51,762
Inventories - 7,703 7,703
Total Current Assets 1,148,086 998,110 2,146,196
Noncurrent Assets:
Capital Assets:
Land 3,660,178 342,836 4,003,014
Buildings and Equipments 3,050,802 1,025,260 4,076,062
Improvements Other Than Buildings 9,963,009 1,175,259 11,138,268
Construction in Progress 371,756 9,808 381,564
Less: Accumulated Depreciation (8,030,031) (1,590,138) (9,620,169)
Total Capital Assets (Net of A/D)9,015,714 963,025 9,978,739
Total Noncurrent Assets 9,015,714 963,025 9,978,739
Total Assets 10,163,800 1,961,135 12,124,935
DEFERRED OUTFLOWS OF RESOURCES:
Deferred Outflow from Bond Refunding 10,918 - 10,918
Deferred Outflow Related to Pensions 4,374 39,786 44,160
15,292 39,786 55,078
LIABILITIES:
Current Liabilities:
Current Payables 58,844 42,072 100,916
Interfund Payables 53,210 - 53,210
Employee Leave Benefits - Current - 16,015 16,015
General Obligation Bonds Payable - Current 186,420 - 186,420
Customer Deposits 100,336 - 100,336
Total Current Liabilities 398,810 58,087 456,897
Noncurrent Liabilities:
Employee Leave Benefits - 5,794 5,794
Net Pension Liability 13,361 67,119 80,480
Total Noncurrent Liabilities 13,361 72,913 86,274
Total Liabilities 412,171 131,000 543,171
DEFERRED INFLOWS OF RESOURCES:
Deferred Inflow Related to Pensions 367 74,882 75,249
NET POSITION:
Net Investment in Capital Assets 8,829,294 963,025 9,792,319
Unrestricted 937,260 832,014 1,769,274
Total Net Position 9,766,554$ 1,795,039$ 11,561,593$
City of Auburn, Washington
COMBINING STATEMENT OF NET POSITION
NON-MAJOR ENTERPRISE FUNDS
December 31, 2018
City of Auburn: 2018 CAFR Fund Financial Statements and Schedules
141
Total
Nonmajor
Enterprise
Airport Cemetery Funds
OPERATING REVENUES:
Charges for Services 77,866$ 1,367,875$ 1,445,741$
Other Operating Revenue 861,875 - 861,875
Total Operating Revenues 939,741 1,367,875 2,307,616
OPERATING EXPENSES:
Operations & Maintenance 480,807 833,346 1,314,153
Administration 75,951 292,512 368,463
Depreciation/Amortization 435,848 33,212 469,060
Other Operating Expenses 571 16,335 16,906
Total Operating Expenses 993,177 1,175,405 2,168,582
Operating Income (Loss)(53,436) 192,470 139,034
NON-OPERATING REVENUE (EXPENSE):
Interest Revenue 20,399 17,822 38,221
Other Non-Operating Revenues 79,249 - 79,249
Gain (Loss) on Sale of Capital Assets - 3,100 3,100
Other Non-Operating Expenses (18,260) - (18,260)
Total Non-Operating Revenue (Expense)81,388 20,922 102,310
Income (Loss) Before Contributions & Transfers 27,952 213,392 241,344
Transfers In (Note 5)- 7,558 7,558
Transfers Out (Note 5)(5,000) (632) (5,632)
Change in Net Position 22,952 220,318 243,270
Net Position, January 1 9,743,602 1,574,721 11,318,323
Net Position, December 31 9,766,554$ 1,795,039$ 11,561,593$
City of Auburn, Washington
COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION
NON-MAJOR ENTERPRISE FUNDS
For the Year Ended December 31, 2018
City of Auburn: 2018 CAFR Fund Financial Statements and Schedules
142
Page 1 of 2
Total
Non Major
Enterprise
Airport Cemetery Funds
CASH FLOWS FROM OPERATING ACTIVITIES:
Cash Received From Users 958,222$ 1,367,875$ 2,326,097$
Cash Paid to Suppliers for Goods & Services (617,221) (437,482) (1,054,703)
Cash Paid for Taxes (600) (16,335) (16,935)
Cash Paid to Employees (118) (745,969) (746,087)
Other Non-Operating Revenue 8,590 3,100 11,690
Net Cash Provided (Used) By Operating Activities 348,873 171,189 520,062
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:
Interfund Loan Payable (40,572) - (40,572)
Operating Grant Received 70,659 - 70,659
Transfers from Other Funds - 7,558 7,558
Operating Transfers Out (5,000) (632) (5,632)
Net Cash Provided (Used) by Non-Capital Financing Activities 25,087 6,926 32,013
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES:
Proceeds from Sale of Equipment - 1,400 1,400
Purchase of Capital Assets (123,990) (22,515) (146,505)
Capital Grant (37,772) - (37,772)
Premium & Bond Issuance Costs 10,919 - 10,919
Principal Payment on Debt (176,402) - (176,402)
Interest Payment on Debt (18,261) - (18,261)
Net Cash Provided (Used) for Capital and Related Financing Activities (345,506) (21,115) (366,621)
CASH FLOW FROM INVESTING ACTIVITIES:
Interest Received 20,399 17,822 38,221
Net Cash Provided (Used) in Investing Activities 20,399 17,822 38,221
Net Increase (Decrease) in Cash and Cash Equivalents 48,853 174,822 223,675
Cash and Cash Equivalents - Beginning of Year 1,047,041 815,585 1,862,626
Cash and Cash Equivalents - End of Year 1,095,894$ 990,407$ 2,086,301$
CASH AT END OF YEAR CONSISTS OF:
Cash and Cash Equivalents 995,558 990,407 1,985,965
Restricted Cash - Customer Deposits 100,336 - 100,336
Total Cash 1,095,894$ 990,407$ 2,086,301$
City of Auburn, Washington
COMBINING STATEMENT OF CASH FLOWS
NON-MAJOR ENTERPRISE FUNDS
For the Fiscal Year Ended December 31, 2018
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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)(53,436)$ 192,470$ 139,034$
ADJUSTMENTS TO RECONCILE OPERATING INCOME TO
NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES:
Depreciation 435,848 33,212 469,060
Other Non-Operating Revenue 8,591 3,100 11,691
Asset (Increases) Decreases:
Accounts Receivable 6,552 - 6,552
Inventory - 797 797
Liability Increases (Decreases):
Accounts & Vouchers Payable (67,421) (9,164) (76,585)
Deposits Payable 11,929 - 11,929
Wages & Benefits Payable 6,810 (46,995) (40,185)
Compensated Absences Payable - (2,231) (2,231)
Total Adjustments 402,309 (21,281) 381,028
Net Cash Provided (Used) by Operating Activities 348,873$ 171,189$ 520,062$
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, 2018
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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.
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Workers Comp Information Equipment
Insurance Self Insurance Facilities Services Rental Total
ASSETS:
Current Assets:
Cash and Cash Equivalents 1,932,767$ 2,180,137$ 1,896,137$ 4,458,020$ 7,438,375$ 17,905,436$
Customer Accounts - - 68,709 - - 68,709
Due From Other Governmental Units - - 92,014 8,480 20,000 120,494
Inventories - - - - 237,206 237,206
Total Current Assets 1,932,767 2,180,137 2,056,860 4,466,500 7,695,581 18,331,845
Noncurrent Assets:
Capital Assets:
Buildings and Equipment - - - 8,452,600 17,232,738 25,685,338
Improvements Other than Buildings - - - 243,150 188,225 431,375
Construction in Progress - - - - 34,727 34,727
Less: Accumulated Depreciation - - - (7,357,963) (10,203,751) (17,561,714)
Total Capital Assets (Net of A/D)- - - 1,337,787 7,251,939 8,589,726
Total Noncurrent Assets - - - 1,337,787 7,251,939 8,589,726
Total Assets 1,932,767 2,180,137 2,056,860 5,804,287 14,947,520 26,921,571
DEFERRED OUTFLOWS OF RESOURCES:
Deferred Outflow Related to Pensions - 6,784 64,585 139,402 57,409 268,180
LIABILITIES:
Current Liabilities:
Current Payables 241 6,029 289,843 326,301 521,475 1,143,889
Claims Payable (Incurred but not reported)- 1,009,000 - - - 1,009,000
Employee Leave Benefits - Current - 4,200 109,309 105,525 31,085 250,119
Other Liabilities Payable - - - - 42,874 42,874
Total Current Liabilities 241 1,019,229 399,152 431,826 595,434 2,445,882
Noncurrent Liabilities
Employee Leave Benefits - 1,520 39,543 38,175 11,246 90,484
Other LT Liabilities Payable - - - - 25,610 25,610
Net Pension Liability - 8,892 91,782 132,905 1,061,713 1,295,292
Total Noncurrent Liabilities - 10,412 131,325 171,080 1,098,569 1,411,386
Total Liabilities 241 1,029,641 530,477 602,906 1,694,003 3,857,268
DEFERRED INFLOWS OF RESOURCES:
Deferred Inflow Related to Pensions - 12,962 105,063 297,013 157,799 572,837
NET POSITION:
Net Investment in Capital Assets - - - 1,337,787 7,183,455 8,521,242
Unrestricted 1,932,526 1,144,318 1,485,905 3,705,983 5,969,672 14,238,404
Total Net Position 1,932,526$ 1,144,318$ 1,485,905$ 5,043,770$ 13,153,127$ 22,759,646$
City of Auburn, Washington
COMBINING STATEMENT OF NET POSITION
INTERNAL SERVICE FUNDS
December 31, 2018
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147
Workers Comp Information Equipment
Insurance Self Insurance Facilities Services Rental Total
OPERATING REVENUES:
Charges for Services -$ 1,030,060$ 3,342,600$ 6,133,909$ 3,969,886$ 14,476,455$
Other Operating Revenue - - 244,830 96,134 - 340,964
Total Operating Revenues - 1,030,060 3,587,430 6,230,043 3,969,886 14,817,419
OPERATING EXPENSES:
Operations & Maintenance - 461,957 3,028,037 5,525,088 1,610,118 10,625,200
Administration 110,197 - - - 865,269 975,466
Depreciation/Amortization - - - 462,540 1,172,807 1,635,347
Total Operating Expenses 110,197 461,957 3,028,037 5,987,628 3,648,194 13,236,013
Operating Income (Loss)(110,197) 568,103 559,393 242,415 321,692 1,581,406
NON-OPERATING REVENUE (EXPENSE):
Interest Revenue 27,223 35,623 39,431 71,684 131,938 305,899
Other Non-Operating Revenues - - 49,999 1,249 103,191 154,439
Gain (Loss) on Sale of Capital Assets - - - - 81,743 81,743
Interest Expense - - - - (2,733) (2,733)
Total Non-Operating Revenue (Expense)27,223 35,623 89,430 72,933 314,139 539,348
Income (Loss) Before Contributions (82,974) 603,726 648,823 315,348 635,831 2,120,754
Transfers In (Note 5)- - 242,411 276,575 416,550 935,536
Transfers Out (Note 5)- - (857,624) (29,394) - (887,018)
Change in Net Position (82,974) 603,726 33,610 562,529 1,052,381 2,169,272
Net Position, January 1 2,015,500 1,595,592 1,452,295 4,481,241 12,100,746 21,645,374
Change in Accounting Principle - (1,055,000) - - - (1,055,000)
Net Position, January 1 restated 2,015,500 540,592 1,452,295 4,481,241 12,100,746 20,590,374
Total Net Position - Ending 1,932,526$ 1,144,318$ 1,485,905$ 5,043,770$ 13,153,127$ 22,759,646$
City of Auburn, Washington
COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION
INTERNAL SERVICE FUNDS
For the Year Ended December 31, 2018
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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 -$ 1,030,060$ 3,443,107$ 6,230,043$ 3,969,886$ 14,673,096$
Cash Paid to Suppliers for Goods & Services (110,104) (402,413) (2,003,358) (2,965,934) (1,420,013) (6,901,822)
Cash Paid to Employees - (114,174) (983,344) (2,645,354) (915,050) (4,657,922)
Other Cash Received - - - (1,035) 83,033 81,998
Net Cash Provided (Used) By Operating Activities (110,104) 513,473 456,405 617,720 1,717,856 3,195,350
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:
Operating Grant Received - - 49,999 - - 49,999
Transfers In - - 242,411 276,575 416,550 935,536
Transfers Out - - (857,624) (29,394) - (887,018)
Net Cash Provided (Used) by Non-Capital Financing Activities - - (565,214) 247,181 416,550 98,517
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES:
Proceeds from Sale of Equipment - - - - 177,345 177,345
Purchase of Capital Assets - - - (344,797) (1,743,765) (2,088,562)
Proceeds from Insurance Settlement - - - - 81,901 81,901
Interest Payment on Debt - - - - (2,733) (2,733)
Net Cash Provided (Used) for Capital and Related Financing Activities - - - (344,797) (1,487,252) (1,832,049)
CASH FLOW FROM INVESTING ACTIVITIES:
Interest Received 27,223 35,623 39,431 71,684 131,938 305,899
Net Cash Provided (Used) in Investing Activities 27,223 35,623 39,431 71,684 131,938 305,899
Net Increase (Decrease) in Cash and Cash Equivalents (82,881) 549,096 (69,378) 591,788 779,092 1,767,717
Cash and Cash Equivalents - Beginning of Year 2,015,648 1,631,041 1,965,515 3,866,232 6,659,283 16,137,719
Cash and Cash Equivalents - End of Year 1,932,767$ 2,180,137$ 1,896,137$ 4,458,020$ 7,438,375$ 17,905,436$
CASH AT END OF YEAR CONSISTS OF:
Cash and Cash Equivalents 1,932,767 2,180,137 1,896,137 4,458,020 7,438,375 17,905,436
Total Cash 1,932,767$ 2,180,137$ 1,896,137$ 4,458,020$ 7,438,375$ 17,905,436$
City of Auburn, Washington
COMBINING STATEMENT OF CASH FLOWS
INTERNAL SERVICE FUNDS
For the Fiscal Year Ended December 31, 2018
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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)(110,197)$ 568,103$ 559,393$ 242,415$ 321,692$ 1,581,406$
ADJUSTMENTS TO RECONCILE OPERATING INCOME TO
NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES:
Depreciation - - - 462,540 1,172,807 1,635,347
Other Non-Operating Revenues - - - - 83,033 83,033
Asset (Increases) Decreases:
Accounts Receivable - - (144,023) (1,035) - (145,058)
Inventory - - - - 5,011 5,011
Liability Increases (Decreases):
Accounts & Vouchers Payable 93 (45,925) 48,031 89,905 183,139 275,243
Deposits Payable - - (300) - - (300)
Wages & Benefits Payable - (7,802) (65,458) (174,339) (59,672) (307,271)
Compensated Absences Payable - (903) 58,762 (1,766) 11,846 67,939
Total Adjustments 93 (54,630) (102,988) 375,305 1,396,164 1,613,944
Net Cash Provided (Used) by Operating Activities (110,104)$ 513,473$ 456,405$ 617,720$ 1,717,856$ 3,195,350$
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, 2018
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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
1/1/2018 Additions Deductions 12/31/2018
ASSETS:
Cash and Cash Equivalents 527,746$ 7,392,536$ 7,377,125$ 543,157$
Other Current Assets 6,853 249,978 250,650 6,181
Total Assets 534,599$ 7,642,514$ 7,627,775$ 549,338$
LIABILITIES:
Current Payables 485,095 13,623,818 13,608,585 500,328
Due to Other Government Units 49,504 892,340 892,834 49,010
Total Liabilities 534,599$ 14,516,158$ 14,501,419$ 549,338$
City of Auburn, Washington
STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
AGENCY FUND
For the Fiscal Year Ended December 31, 2018
City of Auburn: 2018 CAFR Statistical Section
153
City of Auburn
STATISTICAL SECTION
December 31, 2018
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: 2018 CAFR Statistical Section
154
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Governmental activities:
Net Investment in Capital Assets 314,691,982$ 320,506,701$ 340,941,112$ 354,899,294$ 346,195,793$ 348,080,505$ 361,094,242$ 367,128,894$ 373,368,906$ 375,208,981$
Restricted 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 30,001,950
Unrestricted 43,754,879 46,734,364 45,250,090 43,245,050 47,426,352 51,898,566 40,928,090 42,900,814 42,803,759 42,377,297
Total governmental activities net position 371,188,427 382,421,532 400,422,165 411,308,460 408,642,054 416,383,399 421,493,212 436,774,978 446,026,906 447,588,227
Business-type activities:
Net Investment in Capital Assets 150,621,492 152,343,987 166,289,542 173,709,864 165,619,867 169,098,916 187,604,782 195,490,061 205,677,614 208,136,620
Restricted 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 1,924,566
Unrestricted 29,546,169 28,642,334 30,523,974 30,439,381 32,880,216 37,724,080 32,974,662 40,797,698 41,627,494 49,088,740
Total business-type activities net position 182,238,880 185,093,449 200,967,498 208,868,303 215,339,672 220,938,606 225,343,784 239,398,173 249,162,078 259,149,926
Primary government:
Net Investment in Capital Assets 465,313,474 472,850,688 507,230,654 528,609,158 511,815,660 517,179,421 548,699,024 562,618,955 579,046,520 583,345,601
Restricted 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 31,926,516
Unrestricted 73,301,048 75,376,698 75,774,064 73,684,431 80,306,568 89,622,646 73,902,752 83,698,512 84,431,253 91,466,037
Total primary government net position 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$ 706,738,153$
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: 2018 CAFR Statistical Section
155
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Expenses
Governmental activities:
General government 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$ 10,191,329$
Public safety 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 30,337,791
Transportation 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 17,620,176
Physical environment 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 3,794,576
Culture and recreation 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 13,665,612
Economic environment 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 4,140,104
Health and human services 527,029 578,247 619,172 633,175 510,285 622,374 925,299 573,115 674,270 787,535
Interest on long-term debt 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 1,502,236
Total governmental activities expenses 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 82,039,359
Business-type activities:
Water 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 12,499,974
Sewer 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 26,213,221
Storm drainage 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 9,374,373
Solid waste 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 15,311,654
Golf course 1,909,758 1,844,108 1,903,836 1,912,174 1,933,597 - - - - -
Non-major business-type activities 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 2,186,842
Total business-type activities expenses 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 65,586,064
Total primary government expenses 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$ 147,625,423$
Program revenues
Governmental activities:
Charges for services
General Government 814,095$ 1,168,574$ 1,010,911$ 897,521$ 893,326$ 1,160,198$ 1,243,263$ 939,184$ 1,241,905$ 1,462,867$
Public Safety 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 2,821,516
Transportation 1,587,850 960,532 1,042,147 1,819,851 1,967,778 1,660,270 1,446,026 3,265,147 2,118,980 886,760
Physical Environment 147,996 86,306 103,590 36,766 398,564 276,632 384,485 260,555 431,580 611,342
Culture and Recreation 1,048,390 962,558 1,182,688 880,380 873,970 2,876,185 3,052,599 2,508,166 3,073,262 3,355,206
Economic Environment 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 1,913,090
Health and human services 989 449 7,528 - - - - - - -
Total charges for services 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 11,050,781
Operating grants and contributions 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 2,831,794
Capital grants and contributions 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 9,065,857
Total governmental activities program revenues 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 22,948,432
Business-type activities:
Charges for services 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 69,723,671
Operating grants and contributions 87,454 70,841 116,735 97,052 90,361 111,025 106,286 106,286 106,286 106,286
Capital grants and contributions 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 4,566,838
Total business-type activities program revenue 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 74,396,795
Total primary government program revenues 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 97,345,227
Net (expense)/revenue
Governmental activities (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) (59,090,927)
Business-type activities (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 8,810,731
Total primary government net expense (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)$ (50,280,196)$
General revenues and other changes in net position
Governmental activities:
Taxes:
Property taxes 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$ 21,546,734$
Retail sales and use tax 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 21,996,115
Interfund utility taxes 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 4,552,505
Utility taxes 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 9,841,620
Excise taxes 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 4,393,134
Other taxes 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 5,213,217
Investment earnings 570,798 379,316 224,593 178,618 121,687 105,117 118,399 332,520 787,786 1,657,481
Miscellaneous 67,223 214,190 775,969 547,391 (4,625,627) 178,482 194,600 157,874 204,306 428,580
Transfers 170,605 1,463,444 (483,107) (513,428) (218,230) 5,294,793 (462,955) 424,173 454,436 414,975
Total governmental activities 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 70,044,361
Business-type activities:
Investment earnings 312,618 158,211 101,694 82,903 68,400 51,261 70,560 196,595 479,132 989,564
Miscellaneous 3,669,878 1,588,068 2,584,004 1,781,676 763,717 2,700,233 1,881,835 1,085,275 444,110 602,528
Transfers (170,605) (1,463,444) 483,107 513,428 218,230 (5,294,793) 462,955 (424,173) (454,436) (414,975)
Total business-type activities:3,811,891 282,835 3,168,805 2,378,007 1,050,347 (2,543,299) 2,415,350 857,697 468,806 1,177,117
Total primary government 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$ 71,221,478$
Change in net position Before Change in Accounting Principle
Governmental activities 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 10,953,434
Business-type activities 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 9,987,848
Total primary government 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$ 20,941,282$
Change in Accounting Principle
Governmental activities - - - - (222,743) - (13,456,606) 2,512,557 (3,218,004) (9,389,375)
Business-type activities - - - - (156,715) - (6,366,678) - - -
Total primary government -$ -$ -$ -$ (379,458)$ -$ (19,823,284)$ 2,512,557$ (3,218,004)$ (9,389,375)$
Change in net position After Change in Accounting Principle
Governmental activities 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 1,564,059
Business-type activities 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 9,987,848
Total primary government 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$ 11,551,907$
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: 2018 CAFR Statistical Section
156
2009 2010 2011 (1)2012 2013 2014 2015 2016 2017 2018
General Fund
Unreserved 13,237,851$ 15,382,354$ -$ -$ -$ -$ -$ -$ -$ -$
Nonspendable - - - 370,400 127 127 127 - 30,453 38,179
Restricted - - - - - - - - - -
Committed - - - - - - - - - -
Assigned - - 7,082,130 5,935,567 5,892,611 4,045,598 7,284,159 7,160,098 9,315,528 9,375,470
Unassigned - - 14,193,365 17,395,933 17,751,778 20,914,093 20,267,776 24,991,081 25,414,801 24,627,984
Total General Fund 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 34,041,633
All other governmental funds
Reserved 1,538,038 1,592,378 - - - - - - - -
Unreserved, Reported In:- - -
Special Revenue Funds 15,184,058 15,486,918 - - - - - - - -
Capital Projects Funds 10,422,360 12,589,604 - - - - - - - -
Permanent Funds 153,503 132,717 - - - - - - - -
Total Unreserved 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 1,775,453
Restricted 12,781,743 11,688,536 13,483,593 14,830,180 17,885,173 25,079,227 28,137,106 28,226,498
Committed 3,134,449 3,258,257 3,242,662 5,066,181 3,658,719 5,421,640 3,223,108 3,079,656
Assigned 3,120,372 2,388,684 4,976,833 4,725,119 4,755,182 1,226,315 1,221,511 2,827,045
Unassigned 0 - - - -
Total All Other Governmental Funds 27,297,959$ 29,801,617$ -$ 18,811,057$ 23,239,404$ 26,195,628$ 27,884,781$ 33,393,225$ 34,298,859$ 35,908,652$
(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: 2018 CAFR Statistical Section
157
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Revenues
Taxes 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$ 62,430,346$
Licenses and permits 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 1,853,554
Intergovernmental 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 12,234,229
Charges for services 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 6,471,503
Fines and forfeits 1,911,034 2,472,411 1,940,326 1,592,957 1,441,603 1,258,408 938,775 905,921 882,254 920,187
Special assessments 107,597 43,502 32,972 39,115 40,772 472,800 7,494 4,111 3,835 2,210
Investment earnings 484,696 386,890 237,056 200,826 144,151 135,709 117,942 279,058 672,713 1,308,888
Miscellaneous 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 1,600,279
Total revenues 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 86,821,196
Expenditures
General government 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 9,804,631
Public safety 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 34,226,582
Transportation 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 15,512,706
Physical environment 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 4,128,266
Economic environment 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 4,314,648
Health and human services 527,029 568,911 616,717 616,583 631,997 626,681 925,299 573,115 674,270 787,535
Culture and recreation 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 12,450,884
Capital outlay (1)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 2,145,994
Debt service:
Principal 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 1,676,777
Interest / other 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 1,537,504
Total expenditures 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 86,585,527
Excess of revenues
over (under) expenditures (27,385,961) (28,642,758) (6,072,258) 817,329 (1,785,006) 3,570,796 3,674,200 7,410,683 3,490,995 235,669
Other financing sources (uses)
Transfers in 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 8,205,317
Transfers out (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) (7,838,860)
Capital leases 24,549,186 - - - - - - - - -
Insurance recoveries 114,607 200,642 154,200 291,210 192,898 136,585 153,041 83,737 134,003 288,518
Issuance of debt 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 127,741 - 1,331,092 800 2,593,405 17,458 21,952 - 2,700 -
Total other financing sources (uses)25,745,317 33,290,918 2,653,885 (69,971) 6,155,969 700,730 607,197 184,321 24,242 654,975
Net change in fund balances (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$ 890,644$
Debt service as a percentage of noncapital 1.54%37.50%5.44%6.64%8.71%10.68%5.50%5.14%4.66%4.38%
expenditures
(1)Capital outlay reported in governmental funds for 2018 are $2,145,994 plus $11,090,346 which is reported for each functional
activity with the other funds results in total capital outlay of $13,236,340 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: 2018 CAFR Statistical Section
158
Fiscal Sales Interfund
Year Property & Use Utility Utility Excise Other Total
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
2018 21,561,924 21,996,115 4,552,505 9,841,620 4,393,134 85,048 62,430,346
Change
2009-2018 67.0%49.4%32.4%8.5%90.2%62.1%46.8%
Source: City of Auburn, Finance Department
TAX REVENUES BY SOURCE, GOVERNMENT FUNDS
Last Ten Fiscal Years
SCHEDULE 5
City of Auburn, Washington
$0
$10
$20
$30
$40
$50
$60
$70
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018MillionsFigure 5: Tax Revenues by Source
2009-2018
Excise & Other
Utility
Interfund Utility
Sales & Use
Property
City of Auburn: 2018 CAFR Statistical Section
159
State Total Total
Fiscal Property Personal Land and Assessed Direct
Year and Other Property Building Value Rate
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
2018 169,543 918,637 9,611,541 10,699,721 2.03
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
$2
$3
$4
$5
$6
$7
$8
$9
$10
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018MillionsFigure 6: Assessed Value by Type
2009 -2018
State Property
Personal Property
Land and
Buildings
City of Auburn: 2018 CAFR Statistical Section
160
Page 1 of 2
Item 2009 2010 2011 2012
Assessed and estimated actual values (1)
Estimated and actual value (in thousands)8,723,864$ 7,765,878$ 7,564,507$ 7,225,550$
Assessed value (in thousands)8,723,864 7,765,878 7,564,507 7,225,550
Ratio of assessed to actual 100%100%100%100%
Property tax rates (1)
Direct regular and special
General fund 1.48678$ 1.82336$ 1.93458$ 2.07527$
Debt service funds - - - -
Subtotal 1.48678 1.82336 1.93458 2.07527
Overlapping regular and special (1)
Auburn School District 4.37709$ 5.09382$ 5.99562$ 6.14004$
King County 1.09772 1.28499 1.33816 1.41588
State of Washington 1.96268 2.22253 2.27990 2.42266
Port of Seattle 0.19700 0.21597 0.22366 0.22982
Sound Transit - - - -
Emergency Medical Services 0.27404 0.30000 0.30000 0.30000
Hospital District 0.47141 0.53290 0.55753 0.50000
King County Library District 0.41736 0.48526 0.56621 0.56992
Valley Regional Fire Authority 1.10995 1.17910 1.17977 1.18925
King County Flood Zone 0.91230 0.10514 0.10976 0.11616
King County Ferry District 0.05018 0.00348 0.00360 0.00372
Subtotal 10.86973 11.42319 12.55421 12.88745
Total direct and overlapping 12.35651$ 13.24655$ 14.48879$ 14.96272$
Sources:
(1) King County and Pierce County Departments of Assessments; real and personal property
has been assessed at 100% of the estimated actual value.
City of Auburn, Washington
SCHEDULE 7
PROPERTY TAX DATA
Last Ten Fiscal Years
$1.00
$1.50
$2.00
$2.50
$3.00
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018Per $1,000 of Assessed ValuationFigure 7a: Ten Years City Property Tax Rates
2009 -2018
City of Auburn: 2018 CAFR Statistical Section
161
Page 2 of 2
2013 2014 2015 2016 2017 2018
6,968,719$ 7,422,169$ 8,366,653$ 8,967,119$ 9,721,877$ 10,699,721$
6,968,719 7,422,169 8,366,653 8,967,119 9,721,877 10,699,721
100% 100% 100% 100% 100% 100%
2.10000$ 2.16739$ 2.08085$ 2.04719$ 2.19668$ 2.03239$
- - - - - -
2.10000 2.16739 2.08085 2.04719 2.19668 2.03239
6.62190$ 6.50262$ 6.14079$ 5.82831$ 6.74299$ 6.29971$
1.54051 1.51605 1.34522 1.48027 1.38294 1.32735
2.56720 2.47044 2.28514 2.16898 2.03205 2.91820
0.23324 0.21533 0.18885 0.16954 0.15334 0.13518
- - - - 0.25000 0.22745
0.30000 0.33500 0.30217 0.28235 0.26305 0.23940
0.50000 0.50000 0.50000 0.50000 0.50089 0.45689
0.56743 0.56175 0.50276 0.47714 0.45118 0.41190
1.20479 1.20294 1.18043 1.13495 1.06821 0.98189
0.13210 0.15369 0.13860 0.12980 0.11740 0.10708
0.00378 0.00349 - - - -
13.67095 13.46131 12.58396 12.17134 12.96205 13.10505
15.77095$ 15.62870$ 14.66481$ 14.21853$ 15.15873$ 15.13744$
$0.00
$2.00
$4.00
$6.00
$8.00
$10.00
$12.00
$14.00
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018Dollars (Rate Per Thousand)Figure 7b: Property Tax Rates
Last Ten Fiscal Years
Sound Transit
Hospital District
King County Ferry District
King County Flood Zone
Valley Regional Fire Authority
King County Library District
Emergency Medical Services
Port of Seattle
State of Washington
King County
Auburn School District
City of Auburn: 2018 CAFR Statistical Section
162
Total Tax Collections
Fiscal Levy for in Subsequent Current Year
Year Fiscal Year Amount % of Levy Years Amount % of Levy Levy Balance
King County:
2009 11,671,904 11,390,684$ 97.6%281,064 11,671,748$ 100.0%156$
2010 12,712,653 12,459,564 98.0%253,580 12,713,144 100.0%(491)
2011 13,069,514 12,846,996 98.3%226,366 13,073,362 100.0%(3,847)
2012 13,403,022 13,167,731 98.2%226,177 13,393,908 99.9%9,113
2013 12,889,446 12,673,712 98.3%220,635 12,894,347 100.0%(4,901)
2014 14,166,992 13,970,560 98.6%186,115 14,156,675 99.9%10,318
2015 15,389,137 15,226,048 98.9%170,558 15,396,606 100.0%(7,469)
2016 16,037,093 15,897,626 99.1%160,506 16,058,132 100.1%(21,039)
2017 18,651,149 18,418,844 98.8%160,622 18,579,465 99.6%71,684
2018 19,100,533 18,872,111 98.8%- 18,872,111 98.8%228,422
281,946$
Pierce County:
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%17,159 1,495,390 100.0%0
2013 1,484,398 1,471,458 99.1%12,801 1,484,260 100.0%138
2014 1,595,675 1,587,010 99.5%8,501 1,595,511 100.0%164
2015 1,746,163 1,739,735 99.6%6,324 1,746,059 100.0%104
2016 1,867,878 1,866,161 99.9%1,289 1,867,450 100.0%429
2017 2,238,227 2,229,137 99.6%6,701 2,235,837 99.9%2,390
2018 2,321,975 2,312,378 99.6%- 2,312,378 99.6%9,596
12,822$
Total current levy balance 294,768$
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%
96.0%
97.0%
98.0%
99.0%
100.0%
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
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: 2018 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 586,934,541$ 1 5.49%491,218,466$ 1 5.63%
EProperty Tax Inc.139,108,400 2 1.30%73,718,900 4 0.85%
Safeway 124,197,569 3 1.16%106,729,941 3 1.22%
Glimcher Supermall Venture 121,884,218 4 1.14%119,546,742 2 1.37%
Principal Life Insurance Co.109,741,800 5 1.03%- 0.00%
PPF Industrial 98,337,700 6 0.92%- 0.00%
Puget Sound Energy 87,149,356 7 1.30%59,115,114 6 0.68%
Prologis (formerly AMB Institutional Alliance)86,877,500 8 0.81%- 0.00%
KW Lakeland LLC 68,388,100 9 0.64%- 0.00%
TIAA CREF 63,721,100 10 0.60%- 0.00%
Universal Health 59,912,292 5 0.69%
Belara Communities LLC 51,114,300 7 0.59%
Muckleshoot Indian Tribe 50,197,600 8 0.58%
UPS Supply Chain Solutions 36,083,797 9 0.41%
Wal-Mart Store 25,257,711 10 0.29%
TOTALS 1,486,340,284$ 14.38%1,072,894,863$ 12.30%
Source: King County and Pierce County Departments of Assessments
Total assessed value for 2018:10,699,721,499$
Total assessed value for 2009:8,723,864,000$
2018 2009
City of Auburn, Washington
SCHEDULE 9a
PRINCIPAL TAXPAYERS-PROPERTY TAXES
Current Year and Nine Years Ago
0%
5%
10%
15%
20%
25%
2009 2018
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%
2009 2018
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
552,026$ Automotive 1 3.0%313,722$ Automotive 1 2.6%
485,717 Automotive 2 2.7%309,568 Distribution 2 2.6%
465,018 Manufacturing 3 2.6%243,202 Automotive 3 2.0%
462,923 Retail Trade 4 2.5%229,605 Retail Trade 4 1.9%
388,752 Automotive 5 2.1%224,637 Automotive 5 1.9%
373,145 Automotive 6 2.1%220,993 Retail Trade 6 1.9%
306,252 Retail Trade 7 1.7%189,806 Retail Trade 7 1.6%
287,418 Automotive 8 1.6%180,350 Automotive 8 1.5%
268,587 Wholesale Trade 9 1.5%179,370 Retail Trade 9 1.5%
263,949 Retail Trade 10 1.5%174,129 Automotive 10 1.5%
3,853,787$ 21.2%2,265,382$ 19.0%
Source: Washington State Department of Revenue
2018 2009
City of Auburn, Washington
SCHEDULE 9b
PRINCIPAL TAXPAYERS-SALES TAXES
Current Year and Ten Years Ago
City of Auburn: 2018 CAFR Statistical Section
164
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
RETAIL TRADE SECTOR
Automotive/gas 2,559$ 2,553$ 2,785$ 3,019$ 3,136$ 3,309$ 3,707$ 3,659$ 3,972$ 4,122$
Furniture 220 194 218 226 235 254 254 185 197 210
Electronics & appliances 132 121 127 145 174 237 295 221 211 229
Building materials 358 389 383 425 447 502 590 579 580 576
Food stores 352 354 331 341 335 353 368 397 369 388
Health & personal care 150 144 148 149 174 188 221 284 369 420
Apparel 781 752 754 772 889 1,009 1,080 1,136 1,119 1,170
General merchandise 833 801 968 967 974 955 988 1,018 993 221 Misc. retail trade 755 834 851 897 990 1,182 1,193 1,032 1,033 1,827
Subtotal - Retail Trade 6,140 6,142 6,566 6,943 7,354 7,989 8,695 8,512 8,843 9,163
SERVICE SECTOR
Information 457$ 979$ 481$ 396$ 446$ 487$ 526$ 630$ 662$ 638$
Finance & insurance 83 68 66 53 91 88 95 111 122 140
Real estate, rental, leasing 304 288 304 326 279 315 334 359 368 368
Professional, scientific, technical 200 191 175 173 184 216 195 238 239 254
Administrative, supply & remediation services 261 239 295 334 336 350 383 329 276 424
Educational 42 56 53 54 50 49 60 50 56 47
Healthcare & social services 61 37 41 115 33 66 82 92 75 93
Arts & entertainment 147 154 149 153 149 158 208 156 110 119
Accommodation & food service 827 806 839 921 979 1,067 1,159 1,218 1,276 1,435 Other services 485 493 482 530 507 526 603 788 728 711
Subtotal - Services 2,867 3,310 2,882 3,056 3,054 3,322 3,646 3,970 3,912 4,229
OTHER SECTORS
Construction 1,368$ 1,322$ 1,296$ 1,221$ 1,943$ 1,754$ 2,297$ 2,292$ 2,632$ 2,310$
Manufacturing 383 411 583 405 624 1,163 862 761 678 754
Transportation 31 29 77 55 46 71 66 99 89 120
Wholesaling 1,073 1,180 1,260 1,297 1,279 1,205 1,229 1,265 1,363 1,469 Other business 47 128 224 61 64 120 72 67 65 154
Subtotal - Other 2,902 3,071 3,439 3,038 3,956 4,312 4,525 4,485 4,827 4,807
GRAND TOTAL 11,909$ 12,523$ 12,887$ 13,037$ 14,364$ 15,623$ 16,866$ 16,967$ 17,582$ 18,198$
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% 1.40% 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% 10.00% 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
$0
$2
$4
$6
$8
$10
$12
$14
$16
$18
$20
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018MillionsFIGURE 10: RETAIL TAX COLLECTIONS
City of Auburn: 2009 -2018
Other
Wholesaling
Manufacturing Construction
Services
Other Retail
Automotive
City of Auburn: 2018 CAFR Statistical Section
165
General Special Public Works Total Percentage
Fiscal Obligation Assessment Capital Revenue Trust Fund Primary of Personal Per
Year Bonds Bonds Leases Bonds Loans Government Income (1)Capita
2009 36,160,850$ 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
2018 48,427,873 - 282,461 26,523,113 9,360,698 84,594,145 3.58%1,049.36
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
-
300
600
900
1,200
1,500
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
FIGURE 11: PER CAPITA DEBT
Last Ten Fiscal Years
City of Auburn: 2018 CAFR Statistical Section
166
Parks and Utility Total
Councilmanic Excess Levy Open Spaces Purpose Capacity
December 31, 2018 - Total Assessed Value:
11,393,504,898$
2.5% of Assessed Value -$ 284,837,622$ 284,837,622$ 284,837,622$ 854,512,866$
1.5% of Assessed Value 170,902,573 (170,902,573) - - -
Statutory Debt Limit 170,902,573 113,935,049 284,837,622 284,837,622 854,512,866
Debt Outstanding 52,097,318 - - - 52,097,318
Net Debt Outstanding 52,097,318 - - - 52,097,318
Remaining Debt Capacity 118,805,255$ 113,935,049$ 284,837,622$ 284,837,622$ 802,415,548$
General Capacity Special Purpose Capacity
City of Auburn, Washington
SCHEDULE 12
COMPUTATION OF LEGAL DEBT MARGIN
As of December 31, 2018
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Debt Limit 577,669$ 565,822$ 539,989$ 518,188$ 546,602$ 617,872$ 661,996$ 716,628$ 791,936$ 854,513$
Total net debt
applicable to limit 62,671 66,868 65,364 63,815 64,047 61,892 59,409 57,152 54,208 52,097
Legal debt margin 514,998$ 498,954$ 474,625$ 454,372$ 482,554$ 555,980$ 602,588$ 659,476$ 737,728$ 802,416$
Total net debt
applicable to the limit
as a percentage of debt limit 10.85%11.82%12.10%12.32%11.72%10.02%8.97%7.98%6.85%6.10%
City of Auburn, Washington
SCHEDULE 13
LEGAL DEBT MARGIN RATIOS
Last Ten Fiscal Years
(Expressed in Thousands)
City of Auburn: 2018 CAFR Statistical Section
167
Net Debt Percent Bonded Amount
Outstanding Applicable (3)Applicable
Net direct debt:
Net direct debt - City of Auburn (1)52,018,583$
Estimated net overlapping debt: (2)
King County 652,024,000$ 1.77%11,540,825$
Port of Seattle 362,389,998 1.77%6,414,303
School District No. 210 309,929,548 2.83%8,771,006
School District No. 408 335,825,000 77.98%261,876,335
School District No. 415 229,341,000 1.28%2,935,565
Rural Library District 79,175,000 3.12%2,470,260
Valley Regional Fire Authority 11,520,000 89.85%10,350,720
Pierce County 111,615,000 1.00%1,117,609
Total estimated net overlapping debt 305,476,623
Total direct and overlapping debt 357,495,206$
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, 2018
City of Auburn, Washington
SCHEDULE 14
City of Auburn: 2018 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
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
2018 80,615 10,699,721 48,427,873 - 48,428 0.45% 601
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
$0
$200
$400
$600
$800
$1,000
-
0.0020
0.0040
0.0060
0.0080
0.0100
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018Debt/Assessed ValueYear
FIGURE 15: BONDED DEBT RATIOS
Last Ten Fiscal Years
Debt/AV Debt/Pop
City of Auburn: 2018 CAFR Statistical Section
169
Direct(2)Debt Service Requirements
Gross (1)Operating Net Revenue Times
Year Revenue Expense Available Principal Interest Total (3)Coverage
2009 31,265,941$ 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
2018 53,103,312 46,729,765 6,373,547 2,482,692 1,391,468 3,874,160 1.65
Source: City of Auburn, Finance Department
(1) Includes water, sewer & storm drainage operating, interest and other revenues.
(2) Includes water, sewer & storm drainage operating expenses less depreciation.
(3) Includes both parity and non-parity debt.
PLEDGED REVENUE BOND COVERAGES
Last Ten Fiscal Years
City of Auburn, Washington
SCHEDULE 16
$0
$2
$4
$6
$8
$10
$12
$14
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018Millions
YEAR
FIGURE 16: UTILITY BOND COVERAGES
Last Ten Fiscal Years
Net revenue available Debt service requirements
City of Auburn: 2018 CAFR Statistical Section
170
Item 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
School enrollment (1)14,589 14,482 14,363 14,596 14,971 15,277 15,663 15,945 16,525 16,705
Rate of unemployment (2)8.8%9.7%8.7%7.5%6.0%5.4%4.9%4.4%4.5%4.2%
Population (3)67,485 70,180 70,705 71,240 73,235 74,630 75,545 77,060 78,960 80,615
Personal income (thousands of dollars) (4)1,989,660$ 1,900,474$ 1,901,540$ 1,871,973$ 1,917,219$ 2,000,606$ 2,033,520$ 2,111,829$ 2,206,142$ 2,365,567$
Per capita personal income (4)29,483$ 27,080$ 26,894$ 26,277$ 26,179$ 26,807$ 26,918$ 27,405$ 27,940$ 29,344$
Housing units (5)
One unit 14,235 14,641 14,775 14,957 15,393 15,804 16,042 16,167 16,373 16,616
Two or more 10,391 10,560 10,592 10,631 10,841 10,841 10,847 10,854 11,110 11,417
Mobile home or special 2,782 2,633 2,635 2,618 2,630 2,631 2,637 2,630 2,675 2,659
Total housing units 27,408 27,834 28,002 28,206 28,864 29,276 29,526 29,651 30,158 30,692
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
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
90,000
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
FIGURE 17: POPULATION AND HOUSING TRENDS
Last Ten Fiscal Years
Population Total housing units
City of Auburn: 2018 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 5,700 1 14.5%5,179 1 17.4%
Muckleshoot Tribal Enterprises Gaming 3,494 2 8.9%2,500 2 8.4%
The Outlet Collection*Retail 3,150 3 8.0%1,700 4 5.7%
Auburn School District Education 2,513 4 6.4%1,800 3 6.0%
Multicare Auburn Medical Center**Hospital 1,638 5 4.2%805 6 2.7%
Green River College Education 1,202 6 3.1%1,067 5 3.6%
Emerald Downs Racetrack Gaming 1,150 7 2.9%678 7 2.3%
Safeway Distribution Center Distribution 825 8 2.1%650 8 2.2%
Zones, Inc.Technology Reseller 551 9 1.4%500 10 1.7%
Skills, Inc Manufacturing 610 10 1.5%0.0%
Federal Aviation Administration Federal Government - -0.0%500 10 1.7%
General Services Administration Federal Government - -0.0%500 10 1.7%
Social Security Administration Gov't / Public Offices 0.0%600 9 2.0%
Totals 20,833 52.9%16,479 55.3%
2018 - City of Auburn, Economic Development
2009 - City of Auburn CAFR
* Previously the Supermall.
**Previously Auburn Regional Medical Center.
2018 2009
City of Auburn, Washington
SCHEDULE 18
MAJOR EMPLOYERS
Current Year and Nine Years Ago
0%
20%
40%
60%
80%
100%
2009 2018
FIGURE 18a: AUBURN EMPLOYMENT BASE
PERCENTAGE OF TOP EMPLOYER COMPARED
TO ALL EMPLOYERS
Last Ten Fiscal Years
Top
employer
All
employers
0%
20%
40%
60%
80%
100%
2009 2018
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: 2018 CAFR Statistical Section
172
Department 2009 2010(2)2011 2012 2013 2014 2015 2016 2017 2018
Mayor 12 10 10 7 7 3 3 3 3 3
Administration (4)- - - - - 8 8 10 11 12
Human Resources 9 7 7 8 8 8 8 9 8 8
Finance 25 21 22 22 23 23 22 22 22 22
Municipal Court (3)21 17 19 - - - - - - -
Legal 16 13 13 13 13 14 14 14 15 15
Community Development (5)34 24 24 28 29 25 26 26 26 25
Police 152 131 118 122 125 126 129 131 138 140
Public Works 63 43 43 43 48 49 50 53 54 55
Parks, Arts and Recreation (6)40 35 36 36 36 45 45 47 47 47
Street 14 12 19 19 19 19 19 19 20 20
Water 20 22 22 22 22 24 23 23 23 23
Sewer 11 11 12 11 10 10 10 10 10 10
Storm Drainage 17 16 10 10 10 10 10 10 10 12
Solid Waste 2 2 2 2 2 2 2 2 2 2
Airport (8)- - - - - - - - - 3
Cemetery 7 7 7 7 5 5 5 6 6 6
Golf Course (6)9 8 8 8 8 - - - - -
Facilities (1)10 10 10 9 9 9 10 10 10 10
Multi-Media (7)- - - - - 4 4 4 4 4
Innovation & Technology 18 14 14 18 18 15 16 16 17 17
Equipment Rental 11 6 6 7 10 12 12 12 12 12
TOTAL 490 408 401 391 402 411 416 427 438 446
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.
(8)In 2018, 3.0 FTEs were added to the Airport now that the Airport is to be managed in-house. This was approved via
Budget Amendment #6, Ordinance No. 6684.
City of Auburn, Washington
SCHEDULE 19
STAFFING LEVELS BY DEPARTMENT
Last Ten Fiscal Years
-
20
40
60
80
100
120
140
160
Police Public
Works/Streets
Parks, Arts &
Recreation
Utilities Administration Community
Development
OtherNumber of EmployeesFIGURE 19: STAFFING LEVELS
BY TYPE OF SERVICE
Last Ten Fiscal Years
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
City of Auburn: 2018 CAFR Statistical Section
173
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Planning*
Commercial permits 112 18 38 24 32 64 52 79 37 31
Commercial construction value ($1,000's)58,896$ 8,386$ 10,904$ 13,219$ 28,357$ 35,786$ 36,289$ 74,887$ 48,157$ 49,295$
Residential permits 85 184 229 461 464 374 253 242 178 108
Residential construction value ($1,000's)15,739$ 36,602$ 43,574$ 98,212$ 96,248$ 83,007$ 62,043$ 68,997$ 54,132$ 21,969$
Police
Crimes:
Arson 19 23 29 27 14 32 - - 19 20
Aggravated Assault 163 137 148 110 145 156 186 179 198 158
Burglary 590 725 757 983 651 810 851 727 722 615
DUI 193 192 214 171 138 126 188 158 194 223
Homicide 3 3 2 6 5 1 8 6 3 1
Narcotics 440 442 396 383 279 458 511 458 742 912
Rape 13 15 23 23 26 31 31 36 49 42
Robbery 92 79 107 110 109 104 91 98 117 115
Theft 2,362 2,533 2,435 2,415 2,583 3,192 2,728 2,235 2,169 2,945
Theft - motor vehicle 370 569 600 588 678 630 996 1,159 969 973
Traffic:
Non-criminal 7,788 7,182 5,400 4,922 5,378 6,520 5,489 5,706 11,483 10,946
Parking 4,026 4,648 3,383 1,946 2,052 5,238 3,737 3,822 3,777 3,477
Parks and Recreation
Athletic teams 428 439 429 388 382 358 321 328 306 312
Recreation activities 2,335 2,281 3,462 3,833 3,568 3,557 3,511 2,435 3,389 3,498
Golf course rounds 50,572 49,950 45,484 45,704 47,480 47,697 52,718 48,803 47,001 50,720
Senior center visits 41,032 41,350 41,802 40,704 36,991 40,715 38,485 36,636 35,454 32,464
Cultural activities 90 101 127 146 180 202 204 203 214 211
Museum audience served 11,835 12,570 14,119 15,397 14,163 13,968 13,535 14,380 13,570 15,153
Cemetery placements 232 228 273 259 226 250 237 281 264 263
Sources: Various city departments
* Includes new construction only.
City of Auburn, Washington
SCHEDULE 20
OPERATING INDICATORS BY DEPARTMENT
Last Ten Fiscal Years
City of Auburn: 2018 CAFR Statistical Section
174
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
General City
Total area (square miles)30.1 30.1 30.2 30.2 30.2 30.2 30.2 30.2 30.2 30.2
Public Works
Miles of streets 276 283 285 249 245 244 254 238 238 247
Number of streetlights 5,392 5,523 5,581 6,101 6,110 6,211 6,362 6,552 6,581 6,738
Number of traffic signals 85 86 89 93 94 94 95 95 95 95
Utilities
Number of services 13,076 13,372 13,334 13,863 14,106 14,573 14,787 14,872 14,746 14,769
Miles of water lines 293 297 304 314 315 316 320 321 323 347
Miles of sanitary sewer lines 207 213 213 219 220 220 223 224 225 227
Miles of storm lines 204 226 247 252 263 282 294 319 337 362
Number of fire hydrants 2,998 3,044 3,277 3,308 3,329 3,559 3,580 3,577 3,595 3,664
Public Safety
Number of police stations 2 2 2 2 2 2 2 3 3 3
Parks and Recreation
Total park acreage (1)602 602 602 630 635 972 977 989 986 986
Number of softball/baseball fields 18 18 18 17 17 18 18 18 18 18
Number of soccer/football fields 3 3 3 3 4 4 4 4 4 4
Number of playgrounds 33 35 35 35 36 28 31 31 30 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
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Water Customers by Class
Single Family Residential 10,535 10,564 10,704 11,224 11,476 11,822 11,973 12,054 12,010 12,010
Multifamily 985 991 991 989 986 1,000 1,003 1,002 1,009 1,012
Commercial 1,083 1,100 1,095 1,098 1,094 1,146 1,190 1,186 1,158 1,159
Mfr./Industrial 38 38 38 37 37 38 38 37 2 2
Schools 37 37 37 36 37 37 37 38 37 37
City Accounts 27 29 28 26 28 30 30 31 31 30
Irrigation 363 401 434 446 441 493 509 517 492 512
Total Retail Water Customers 13,068 13,160 13,327 13,856 14,099 14,566 14,780 14,865 14,739 14,762
Wholesale Water Customers 7 8 8 7 7 7 7 7 7 7
Sewer Customers by Class
Single Family Residential 10,711 10,918 11,183 11,522 11,982 12,631 12,890 13,091 13,124 13,176
Non-single Family Residential 2,605 2,612 2,616 2,653 2,659 2,713 2,728 2,725 2,724 2,728
Total Sewer Customers 13,316 13,530 13,799 14,175 14,641 15,344 15,618 15,816 15,848 15,904
Storm Customers by Class
Single Family Residential 14,441 14,495 14,846 15,168 15,618 16,013 16,222 16,200 16,566 16,610
Non-single Family Residential 1,650 1,769 1,653 1,661 1,640 1,670 1,679 1,913 1,671 1,691
Total Storm Customers 16,091 16,264 16,499 16,829 17,258 17,683 17,901 18,113 18,237 18,301
Sources: City of Auburn - Utility Billing
City of Auburn, Washington
SCHEDULE 22
NUMBER OF UTILITY CUSTOMERS BY CUSTOMER CLASS
Last Ten Fiscal Years
City of Auburn: 2018 CAFR Statistical Section
175