HomeMy WebLinkAboutQ2 2019 Financial Report
AGENDA BILL APPROVAL FORM
Agenda Subject: 2nd Quarter 2019 Financial Report Date: September 4, 2019
Department: Finance
Attachments: Quarterly Financial
Report
Budget Impact: $0
Administrative Recommendation: For discussion only.
Background Summary:
The quarterly financial report summarizes the general state of Citywide financial affairs and highlights
significant items or trends that the City Council should be aware of. The attachment provides the year to
date through June 2019 status report based on financial data available as of July 20, 2019 for the period
ending June 30, 2019 and sales tax information representing business activity that occurred through April
2019.
Staff: Thomas
Meeting Date: September 9, 2019 Item Number:
Quarterly Financial Report Through Q2-2019
General Fund Summary
$11.3
$10.1
$6.7
$2.9
$0.4 $1.3
$3.2
$0.8
$23.2
$10.0
$4.6
$0.3
$11.6
$10.2
$6.8
$2.9
$0.5
$1.4
$3.4
$1.2
$21.6
$8.8
$4.6
$0.1
PropertyTaxesSalesTaxesOtherTaxesIntergovernmental(Grants, etc.)DevelopmentService FeesCulture &RecreationOther Fees& ChargesOtherRevenuesPersonnelSupplies& ServicesOtherExpendituresTransfersOutRevenues Expenditures
$0
$5
$10
$15
$20
$25
MillionsYTD
Budget
YTD
Actuals
(Favorable)
YTD
Actuals
(Unfavorable)
General Fund Revenues and Expenditures
(Through Q2-2019) $36.8 $38.1$37.9 $35.1
Total
Revenues
Total
Expenditures
$0
$10
$20
$30
$40
$50
Millions$0.6
$1.3
$0.6 $0.5 $0.8
$1.8 $1.4
$2.6 $2.5
$14.5
$1.9
$6.2
$1.9 $1.6
$0.5 $1.1 $0.4 $0.4 $0.7
$1.7 $1.3
$2.0 $2.5
$13.9
$1.9
$6.0
$1.7
$0.9
Council& MayorAdministrativeServicesCommunity &Human ServicesMunicipal Court& ProbationHumanResourcesFinanceCity AttorneyCommunityDevelopmentJail - SCOREPolicePublicWorksParks, Arts& RecreationStreetsNon-Departmental$0
$5
$10
$15
$20
MillionsYTD
Budget
YTD
Actuals
(Favorable)
YTD
Actuals
(Unfavorable)
General Fund Expenditures by Department
(Through Q2-2019)
1
Quarterly Financial Report Through Q2-2019 2
General Fund 2018
Summary of Sources and Uses Annual YTD YTD YTD
Budget Budget Actual Actual Amount
Operating Revenues
Property Tax 6 21,550,000$ 11,291,700$ 11,574,405$ 11,179,408$ 282,705$ 2.5 %
Retail Sales Tax 8-9 18,435,100 9,010,500 8,949,659 7,776,717 (60,841)(0.7)%
Sales Tax - Pierce County Parks 105,500 50,700 53,506 49,563 2,806 5.5 %
Sales Tax - Annexation Credit - - - 1,056,364 0 N/A %
Criminal Justice Sales Tax 2,162,000 1,029,900 1,146,909 1,072,063 117,009 11.4 %
Brokered Natural Gas Tax 137,900 81,400 119,494 91,424 38,094 46.8 %
City Utilities Tax 10-11 4,035,600 1,956,400 1,965,586 1,849,170 9,186 0.5 %
Admissions Tax 398,000 199,200 196,375 206,076 (2,825)(1.4)%
Electric Tax 10-11 3,558,100 1,945,000 1,940,402 2,048,591 (4,598)(0.2)%
Natural Gas Tax 10-11 1,008,000 686,300 628,650 699,014 (57,650)(8.4)%
Cable Franchise Fee 11-12 950,500 479,100 467,805 486,701 (11,295)(2.4)%
Cable Utility Tax 12 1,020,000 510,000 489,453 516,215 (20,547)(4.0)%
Cable Franchise Fee - Capital 65,000 32,500 32,416 30,406 (84)(0.3)%
Telephone Tax 10-11 1,177,900 619,900 478,737 690,962 (141,163)(22.8)%
Garbage Tax (external)10-11 134,400 67,200 72,002 66,702 4,802 7.1 %
Leasehold Excise Tax 50,000 25,000 183,394 177,145 158,394 633.6 %
Gambling Excise Tax 415,500 114,000 201,633 151,190 87,633 76.9 %
Taxes sub-total 55,203,500$ 28,098,800$ 28,500,426$ 28,147,711$ 401,626$ 1.4 %
Business License Fees 13-14 210,000$ 125,800$ 109,947$ 197,357$ (15,853)(12.6)%
Building Permits 14 1,070,000 624,100 462,087 517,784 (162,013)(26.0)%
Other Licenses & Permits 3 557,900 282,100 518,477 289,482 236,377 83.8 %
Intergovernmental (Grants, etc.)15 5,846,400 2,890,260 2,903,456 3,113,230 13,196 0.5 %
Charges for Services:16-19
General Government Services 16 2,721,110 1,309,673 1,294,500 41,605 (15,174)(1.2)%
Public Safety 17 981,000 447,725 587,628 489,924 139,903 31.2 %
Development Services Fees 17-18 805,000 423,100 484,874 351,908 61,774 14.6 %
Culture and Recreation 18-19 2,409,980 1,271,300 1,428,369 1,368,831 157,069 12.4 %
Fines and Penalties 19-20 859,500 456,400 443,163 503,588 (13,237)(2.9)%
Fees/Charges/Fines sub-total 15,460,890$ 7,830,458$ 8,232,501$ 6,873,708$ 402,042$ 5.1 %
Interest and Investment Earnings 21 348,700$ 174,000$ 237,171$ 176,279$ 63,171 36.3 %
Rents and Leases 21 849,300 441,800 506,788 525,096 64,988 14.7 %
Contributions and Donations 21 25,000 9,300 18,676 16,196 9,376 100.8 %
Other Miscellaneous 21 228,400 126,000 220,487 150,102 94,487 75.0 %
Transfers In 119,406 85,906 85,906 77,500 0 0.0 %
Insurance Recoveries - Capital & Operating 25,000 12,500 92,092 32,523 79,592 636.7 %
Other Revenues sub-total 1,595,806$ 849,506$ 1,161,121$ 977,696$ 311,615$ 36.7 %
Total Operating Revenues 72,260,196$ 36,778,764$ 37,894,047$ 35,999,115$ 1,115,283$ 3.0 %
Operating Expenditures
Council & Mayor 1,109,779$ 553,300$ 516,985$ 582,102$ 36,315$ 6.6 %
Administration 2,694,148 1,347,000 1,089,465 767,568 257,535 19.1 %
Human Resources 1,626,831 817,000 749,505 595,394 67,495 8.3 %
Municipal Court & Probation 2,879,221 493,336 407,473 355,018 85,862 17.4 %
Finance 3,533,140 1,816,700 1,710,519 735,988 106,181 5.8 %
City Attorney 2,795,950 1,381,800 1,261,975 1,064,040 119,825 8.7 %
Community Development 5,197,326 2,594,100 1,972,261 2,041,319 621,839 24.0 %
Community & Human Services (Comm Devel)1,069,373 552,000 405,513 509,006 146,487 26.5 %
Jail - SCORE 5,001,000 2,500,500 2,481,207 1,665,696 19,293 0.8 %
Police 29,397,379 14,454,200 13,949,875 13,375,970 504,325 3.5 %
Public Works 4,068,425 1,930,500 1,928,949 1,716,278 1,551 0.1 %
Parks, Arts & Recreation 12,962,401 6,228,400 6,034,861 6,063,359 193,539 3.1 %
Streets 4,041,472 1,861,900 1,687,778 1,746,251 174,122 9.4 %
Non-Departmental 2,075,610 1,571,200 910,566 2,787,830 660,634 42.0 %
Total Operating Expenditures 78,452,055$ 38,101,936$ 35,106,931$ 34,005,818$ 2,995,004$ 7.9 %
2019 2019 YTD Budget vs. Actual
Favorable (Unfavorable)
Percentage
Page
Ref
2
Quarterly Financial Report Through Q2-2019 3
Executive Summary
This Executive Summary provides an overview of the City’s overall financial position for the
fiscal period ending June 30, 2019, reflecting financial data available as of July 20, 2019.
General Fund:
Through June 2019, General Fund revenues totaled $37.9 million and were $1.1 million higher
than budget expectations and $1.9 million higher than revenues collected through Q2-2018.
Some notable variances to budget through June 2019 include:
• Property tax collections through Q2-2019 totaled $11.6 million, which was $283,000
higher than budget expectations and exceeded 2018 year-to-date collections by
$395,000. [page 7]
• General Fund retail sales tax revenues totaled $8.9 million, which was $61,000 under
budget expectations. W hile General Fund sales tax collections through Q2-2019 were
$1.2 million higher than what was collected through Q2-2018, this is due to a policy
change: between 2013 and 2018, all sales tax dollars collected from sales tax on
construction benefitted the Local Street Fund and therefore were not distributed to the
General Fund. Effective January 1, 2019, this policy changed and now all sales tax
dollars stay in the General Fund to support ongoing operations. [pages 8-9]
• The other taxes category performed favorably to budget in Q2-2019. Actual revenues
collected through Q2-2019 were $6.8 million, which was $60,000, or 0.9% favorable
to budget. Leasehold excise tax revenues collected through Q2-2019 exceeded
budget by $158,000 due to an unbudgeted leasehold excise tax receipt for the Emerald
Downs property. Gambling tax revenues collected during the same period exceeded
budget by $88,000. These revenues were somewhat offset by unfavorable variances
in telephone tax and natural gas tax revenues in the amount of $141,000 and $58,000,
respectively. [pages 10-12]
• Building permit revenue collected through Q2-2019 totaled $462,000, compared to a
budget of $624,000. The number of building permits issued through Q2-2019 totaled
269, which represents a 2.7% increase over the number of permits issued through Q2-
2018, while the valuation of those permits declined by 18.4% during that same
timeframe. [page 14]
• Other licenses and permit revenues collected year-to-date exceed budget
expectations by $236,000. A portion of that favorable variance to budget is due to
large grading permits issued for the Auburn Elementary School and Dick Scobee
Elementary School projects. In addition, excavation permit revenues collected year-
to-date exceed budget expectations by $165,000. While we are halfway through the
year, these revenues already exceed the year-end collections of any year on record.
The increased revenue collected is primarily due to the increase in the fee structure,
where the City is now close to achieving full cost recovery on construction permits.
• Intergovernmental revenues collected through Q2-2019 totaled $2.9 million and ended
the period with a net of $13,000 favorable to budget expectations. Revenues from
Muckleshoot Casino for services rendered exceeded budget expectations by
$126,000 while the revenues collected for streamlined sales tax revenues were
3
Quarterly Financial Report Through Q2-2019 4
$168,000 unfavorable to budget. This variance to budget seen in the streamlined
sales tax revenues are primarily due to the Marketplace Fairness Act (MFA). While
the Marketplace Fairness Act (MFA) was passed in 2017 in order to capture the retail
sales tax lost from internet and remote sales, the bill phases out and eventually
eliminates the streamlined sales tax mitigation payments to local governments. It was
anticipated that 2019 would be the last year that the City of Auburn would receive the
streamlined sales tax monies, but when the 2019 legislative session adjourned (in May
2019), they voted to continue funding of the mitigation payments through June 2021.
The annual revenue historically collected on this revenue stream was approximately
$2.0 million. While the sales tax revenues collected under MFA are receipted in as
sales tax revenue, it is deducted from the amount of revenue the City receives for
streamlined sales tax revenues. The amount that the City received through Q2-2019
due to the Marketplace Fairness Act was $292,000. [page 15]
• Culture and recreation revenues collected through Q2-2019 totaled $1.4 million
compared to a budget of $1.3 million, exceeding budget expectations by $157,000.
The primary areas of increased revenues collected compared to last year were green
fees generated at the Auburn Golf Course and ticket sales for performances at the
Auburn Avenue Theater. [pages 18-19]
General Fund expenditures through the first half of 2019 totaled $35.1 million compared to a
budget of $38.1 million, representing a 7.9% favorable variance to budget. All departments
operated within their allocated year-to-date budget through Q2-2019.
Year-to-date General Fund expenditures ended the period $1.1 million, or 3.2% higher than
expenditures through Q2-2018. This year-over-year increase was primarily due to increased
expenditures for salaries and benefits. Through Q2-2019, salary and benefit costs increased by
$1.8 million, or 8.9%, compared to salary and benefit expenditures through Q2-2018. This
increase largely reflects increased costs associated with the Police Bargaining Agreements that
were approved earlier this year, with the retroactive salary and benefit payments having been
posted in April 2019. In addition, this year-over-year increase includes the impacts of the cost
of living adjustments (COLAs), an increase in Council-approved FTEs (Full Time Equivalents),
and increased costs associated with healthcare benefits.
In addition, the year-over-year salary and benefit costs reported in the General Fund in 2019 are
higher than salary and benefit costs in 2018 due not only to the wage adjustments noted above
but also to a change in the way salary and benefit costs are allocated. Prior to 2019, salary and
benefit costs for support departments (Finance, Human Resources and the Legal Department)
were directly charged to other General Fund departments as well as to other City funds.
Effective January 1, 2019, all salaries and benefit costs for the support departments mentioned
above are now charged 100% to the General Fund. In order to recoup the cost of services, the
General Fund now charges other funds for these services via an interfund charge, with an
associated revenue in the General Fund (for reference, refer to the general government
services line item in the tables on pages 2 and 16 of this report). While this change results in
higher salary and benefit costs within the General Fund, the change is actually cost neutral to
the bottom line.
4
Quarterly Financial Report Through Q2-2019 5
Street Funds:
The City’s three street funds are special revenue funds wherein the revenue sources and
expenditures are legally restricted. These funds are used for street capital construction
projects, local street repair, and arterial street repair and preservation projects. Historically, the
majority of expenditures in all three street funds occur during the second half of the year when
weather conditions are optimal for pavement construction.
Through Q2-2019, Arterial Street Fund revenues totaled $1.1 million as compared to
collections of $1.3 million through Q2-2018, while expenditures totaled $1.2 million as compared
to expenditures of $2.1 million through Q2-2018. These variances are due to the level of activity
on projects in the fund and timing of grant reimbursements and other funding. [pages 25–26]
Local Street Fund revenues of $1.1 million are in line with budget expectations, and compare
to collections of $1.3 million through Q2-2018. This variance is due to a change in funding
sources – last year, the Local Street Fund received revenue from sales tax on construction.
Starting in 2019, the fund instead receives a set revenue amount from real estate excise tax
(REET 2). Expenditures through the second quarter were $244,000 as compared with $563,000
through Q2-2018. [pages 27–28]
Lastly, Arterial Street Preservation Fund revenues totaled $1.4 million through Q2-2019,
compared to collections of $1.2 million through Q2-2018. Expenditures totaled $657,000 versus
$266,000 through Q2-2018. These variances are due to the level of activity on projects in the
fund and timing of grant reimbursements and other funding. [pages 29–30]
YTD Budget
$ 36.8M
YTD Budget
$ 38.1M
YTD Actuals
$ 37.9M
YTD Actuals
$ 35.1M
$0 $5 $10 $15 $20 $25 $30 $35 $40 $45 $50
Revenues
Expenditures
$ Millions
General Fund
Revenues vs. Expenditures Through Q2-2019
5
Quarterly Financial Report Through Q2-2019 6
Enterprise Funds:
The City’s enterprise funds account for operations with revenues primarily provided from user
fees, charges or contracts for services.
All City utilities transitioned from bimonthly to monthly usage billing starting in January 2019.
The Water Fund ended the second quarter with operating income of $2.4 million, compared to
$2.1 million during the same period last year. [page 32]
The Sewer Fund finished Q2-2019 with operating income of $1.5 million versus $1.0 through
Q2-2018. [page 33]
The Stormwater Fund also ended the second quarter with operating income of $1.5 million
compared to $1.3 million through Q2-2018. [page 33]
The Solid Waste Fund finished Q2-2019 with operating income of $284,000 compared to
$376,000 through Q2-2018, a variance caused by increased payments to the City’s primary
solid waste contractor. [pages 33-34]
The Airport Fund finished Q2-2019 with operating income of $239,000 compared to $146,000
through Q2-2018, a variance largely attributable to the purchase and sale of aviation fuel.
[page 35]
The Cemetery Fund had operating income of $115,000, representing an increase of $4,000
over the same period last year. [page 35]
Internal Service Funds:
Internal service funds provide services to other City departments and include functions such as
Insurance, Worker’s Compensation, Facilities, Innovation & Technology, and Equipment Rental.
No significant variances were reported in these funds during the second quarter. [page 35]
6
Quarterly Financial Report Through Q2-2019 7
General Fund
Revenues
The combined total of property, sales/use, utility, gambling, and admissions taxes provides 75%
to 80% of all resources supporting general governmental activities. The following section
provides additional information on these sources.
Property Tax collections through Q2-2019 totaled $11.6 million and was $283,000, or 2.5%
favorable to budget expectations. As depicted in the graphic below, the majority of property
taxes are collected during the months of April and October, coinciding with the due dates for the
County property tax billings.
$0.0
$2.0
$4.0
$6.0
$8.0
$10.0
$12.0
$14.0
$16.0
$18.0
$20.0
$22.0
$24.0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecMillionsProperty Taxes
2019 Budget
2019 YTD Actual
2018 Actual
$15.8
$17.2 $17.9
$20.8 $21.4
$11.6
$0.0
$5.0
$10.0
$15.0
$20.0
$25.0
2014 2015 2016 2017 2018 2019 YTDMillionsProperty Tax Revenue
Actuals
7
Quarterly Financial Report Through Q2-2019 8
Retail sales tax collections through Q2-2019 totaled $8.9 million, which was $61,000 under
budget expectations. While it was anticipated that sales tax growth in 2019 would wane
compared to the growth seen in 2018, it has been lower than expected where 2019 year-to-date
growth was 0.9% compared to 5.0% revenue growth through Q2-2018. While sales tax
revenues collected in the General Fund in Q2-2019 were $1.2 million more than collections
through Q2-2018, this is primarily due to a policy change that became effective on January 1,
2019. Between 2013 and 2018, all sales tax dollars collected from sales tax on construction
benefitted the Local Street Fund and were therefore not distributed to the General Fund;
effective January 1, 2019, this policy changed whereby all sales tax dollars stay in the General
Fund to support ongoing operations. In June 2019, the City issued a rebate in the amount of
$47,000 in accordance with the Sales Tax Exemption Program, which is a permanent program
that incentivizes construction of new or expanded businesses in specific zoned areas of the
City. This rebate is reflective of the differences in retail sales taxes reported on page 2 and
page 9 of this report.
Due to the Marketplace Fairness Act (MFA) which became effective on January 1, 2018, retail
sales taxes collected through Q2-2019 included $292,000 from retail sales taxes collected on
internet and remote sales. This is collected as retail sales tax revenue and is deducted from the
amount the City receives for streamlined sales tax revenue (see page 15 for more information).
Other sales tax revenues include Pierce County Parks sales tax revenue and the Criminal
Justice sales tax revenue, both ended the period favorable to budget by $3,000 and $117,000
respectively. Total sales tax revenues – including retail and other sales taxes – were $10.2
million through Q2-2019, or slightly above the year-to-date budget of $10.1 million.
$0.0
$2.0
$4.0
$6.0
$8.0
$10.0
$12.0
$14.0
$16.0
$18.0
$20.0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecMillionsRetail Sales & Use Tax
2019 Budget
2019 YTD Actual
2018 Actual
8
Quarterly Financial Report Through Q2-2019 9
The following table breaks out the City’s retail sales taxes by major business sector.
Citywide retail sales tax revenue collected through Q2-2019 was $81,000, or 0.9%, more than
collected through Q2-2018. The business sector that realized the greatest revenue increase
compared to the same period last year was in the retail trade category, while the construction
category declined 16.5%, or $188,000, compared to collections through Q2-2018.
$13.8 $14.5 $14.6 $14.9
$15.9
$8.9
$0.0
$2.0
$4.0
$6.0
$8.0
$10.0
$12.0
$14.0
$16.0
$18.0
$20.0
2014 2015 2016 2017 2018 2019
YTDMillionsRetail Sales & Use Tax
Actuals
2018 2019
Component Group Actual Actual Amount
Construction 1,139,316$ 950,985$ (188,331)$ (16.5)%
Manufacturing 340,007 394,967 54,961 16.2 %
Transportation & Warehousing 52,991 44,147 (8,844)(16.7)%
Wholesale Trade 744,827 711,499 (33,328)(4.5)%
Automotive 2,020,503 1,964,979 (55,523)(2.7)%
Retail Trade 2,501,011 2,673,680 172,669 6.9 %
Services 2,042,381 2,127,235 84,854 4.2 %
Miscellaneous 74,998 129,498 54,500 72.7 %
YTD Total 8,916,034$ 8,996,990$ 80,957$ 0.9 %
Comparison of Retail Sales Tax Collections by Group
Through June
Change from 2018
Percentage
9
Quarterly Financial Report Through Q2-2019 10
Utility Taxes consist of interfund taxes on City utilities (Water, Sewer, Storm and Solid Waste)
and taxes on external utilities (Electric, Natural Gas, Telephone and Solid Waste). Utility taxes
collected through Q2-2019 totaled $5.1 million and were $189,000, or 3.6%, below budget
expectations.
The majority of this unfavorable variance to budget through Q2-2019 was seen in
telephone tax collections. This is due, in part, to the timing of payments received from
telephone businesses as well as the steady decline in telephone utility tax revenue
since 2010.
$0.0
$2.0
$4.0
$6.0
$8.0
$10.0
$12.0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecMillionsUtility Tax
2019 Budget
2019 YTD Actual
2018 Actual
2018 2019 2019
Utility Tax Type YTD Actual YTD Budget YTD Actual Amount Amount
City Interfund Utility Taxes 1,849,170$ 1,956,400$ 1,965,586$ $ 116,417 6.3 % $ 9,186 0.5 %
Electric 2,048,591 1,945,000 1,940,402 (108,189) (5.3)%(4,598) (0.2)%
Natural Gas 699,014 686,300 628,650 (70,363) (10.1)%(57,650) (8.4)%
Telephone 690,962 619,900 478,737 (212,225) (30.7)%(141,163) (22.8)%
Solid Waste (external)66,702 67,200 72,002 5,300 7.9 %4,802 7.1 %
YTD Total 5,354,438$ 5,274,800$ 5,085,377$ $ (269,061)(5.0)% $ (189,423)(3.6)%
Through June 2019
Utility Tax by Type
2019 vs. 2018 Actual 2019 vs. Budget
Percentage Percentage
10
Quarterly Financial Report Through Q2-2019 11
Cable Franchise Fees, which are collected quarterly, totaled $468,000 through Q2-2019 and
were $11,000, or 2.4%, lower than budget expectations.
$10.0 $9.7 $10.0 $10.2 $9.9
$5.1
$0.0
$2.0
$4.0
$6.0
$8.0
$10.0
$12.0
2014 2015 2016 2017 2018 2019
YTDMillionsUtility Tax Revenues
Actuals
$0
$100
$200
$300
$400
$500
$600
$700
$800
$900
$1,000
1st Quarter 2nd Quarter 3rd Quarter 4th QuarterThousandsCable Franchise Fee
2019 Budget
2019 YTD Actual
2018 Actual
11
Quarterly Financial Report Through Q2-2019 12
Cable Utility Tax. This tax became effective on January 1, 2017 and is also collected quarterly.
Total cable utility tax revenue collected through Q2-2019 totaled $489,000 and was unfavorable
to budget expectations by $21,000, or 4.0%.
$0.9 $0.9 $1.0 $1.0 $1.0
$0.5
$0.0
$0.2
$0.4
$0.6
$0.8
$1.0
$1.2
$1.4
2014 2015 2016 2017 2018 2019 YTDMillionsCable Franchise Fee
Actuals
$0
$100
$200
$300
$400
$500
$600
$700
$800
$900
$1,000
$1,100
1st Quarter 2nd Quarter 3rd Quarter 4th QuarterThousandsCable Utility Tax
2019 Budget
2019 YTD Actual
2018 Actual
12
Quarterly Financial Report Through Q2-2019 13
Licenses and Permits include business licenses, building permits, plumbing, electric and other
licenses and permit fees. Building permit fees and business licenses make up about 70% of the
annual budgeted revenue in this category.
Business license revenues collected through June 2019 totaled $110,000 as compared to a
budget of $126,000. This shortfall relates to the timing of when business license renewal
notices are paid: a majority of businesses paid their 2019 business licenses in late 2018.
$0
$50
$100
$150
$200
$250
$300
$350
$400
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecThousandsBusiness Licenses
2019 Budget
2019 YTD Actual
2018 Actual
$171
$282
$225
$163
$353
$110
$0
$50
$100
$150
$200
$250
$300
$350
$400
2014 2015 2016 2017 2018 2019
YTDThousandsBusiness License Revenues
Actuals
13
Quarterly Financial Report Through Q2-2019 14
Building permit revenue collected through Q2-2019 totaled $462,000 compared to a budget of
$624,000. Revenues collected through Q2-2019 were 10.8% below collections through Q2-
2018, while the valuation of permits during these same periods declined by 18.4% (after
adjusting for the Auburn Apartments project, for which permits were paid in 2018). The number
of building permits issued through Q2-2019 totaled 269, which represents a 2.7% increase over
the number of permits issued through Q2-2018. Although the number of permits has increased,
the average value of projects through Q2-2019 has declined compared to the same period last
year.
Major projects contributing to building permit revenues this quarter includes the Auburn Heights
Elementary School and the Dick Scobee Elementary School as well as projects at Boeing and
Skills, Inc. In addition, permits were issued for single-family housing developments, most
notably Trussler Estates.
$0.0
$0.2
$0.4
$0.6
$0.8
$1.0
$1.2
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecMillionsBuilding Permits
2019 Budget
2019 YTD Actual
2018 Actual
$1.5
$1.2
$2.0
$1.2
$0.9
$0.5
$0.0
$0.5
$1.0
$1.5
$2.0
$2.5
2014 2015 2016 2017 2018 2019 YTDMillionsBuilding Permits
Actuals
14
Quarterly Financial Report Through Q2-2019 15
Intergovernmental revenues include grants (direct and indirect federal, state and local),
revenue from the Muckleshoot Indian Tribe (MIT) compact, intergovernmental service revenues,
and state shared revenues. Collections through the first half of 2019 totaled $2.9 million and
were a net of $13,000 above budget expectations.
The majority of the variance to budget was seen in the streamlined sales tax revenue
distribution, which was reduced by $292,000 through Q2-2019 due to the Marketplace Fairness
Act (MFA), which was implemented in January 2018 to capture the retail sales tax lost on
internet and remote sales. MFA revenues are collected as retail sales tax revenues, which then
reduces the amount the City receives in streamlined sales taxes (see also page 8).
2018 2019 2019
Revenue YTD Actual YTD Budget YTD Actual Amount Amount
Federal Grants 110,084$ 154,150$ 99,372$ $ (10,712)N/A % $ (54,778)N/A %
State Grants 89,821 63,000 94,063 4,242 4.7 %31,063 49.3 %
Interlocal Grants 28,817 0 0 (28,817) 0.0 %0 N/A %
Muckleshoot Casino Services 496,975 462,800 588,830 91,856 18.5 %126,030 27.2 %
State Shared Revenues:
Streamlined Sales Tax 895,247 842,500 674,010 (221,237) (24.7)%(168,490) (20.0)%
Motor Vehicle Fuel Tax 577,019 541,400 551,415 (25,604) (4.4)%10,015 1.8 %
Criminal Justice - High Crime 104,972 100,000 114,594 9,622 9.2 %14,594 14.6 %
Criminal Justice - Population 11,190 11,000 11,759 568 5.1 %759 6.9 %
Criminal Justice - Special Prog.40,540 40,200 42,416 1,877 4.6 %2,216 5.5 %
Marijuana Revenues 145,971 54,000 91,231 (54,741) (37.5)%37,231 68.9 %
State DUI 5,837 5,800 5,863 26 0.4 %63 1.1 %
Fire Insurance Tax 79,798 78,900 80,386 588 N/A %1,486 N/A %
Liquor Excise 199,801 207,060 220,899 21,098 10.6 %13,839 6.7 %
Liquor Profit 327,159 329,450 328,618 1,459 0.4 %(832) (0.3)%
Total State Shared:2,387,534 2,210,310 2,121,190 (266,344)(11.2)%(89,120) (4.0)%
YTD Total 3,113,230$ 2,890,260$ 2,903,456$ (209,774)$ (6.7)%13,196$ 0.5 %
Through June 2019
Intergovernmental Revenues (Grants, Entitlements & Services)
2019 vs. 2018 Actual 2019 vs. Budget
% Change % Change
$5.1 $5.3 $5.7 $6.1 $6.3
$2.9
$0
$1
$2
$3
$4
$5
$6
$7
$8
2014 2015 2016 2017 2018 2019
YTDMillionsIntergovernmental Revenues
(Grants, Entitlements & Services)
Actuals
15
Quarterly Financial Report Through Q2-2019 16
Charges for Services consist of general governmental service charges, public safety charges,
development service fees, and culture & recreation fees. Overall, charges for services collected
through Q2-2019 totaled $3.8 million, which was $344,000 favorable to budget. The primary
areas of increases were in both culture and recreation revenues and public safety revenues as
explained on pages 17 and 18.
A process change was implemented in 2019 that significantly affects the comparison of year-
over-year variances. Prior to 2019, salary and benefit expenditures for support departments
(Finance, Human Resources and the Legal Department) were allocated between the General
Fund and other City funds. Effective January 1, 2019, all salary and benefit costs for support
departments are now fully charged to their respective General Fund department. The General
Fund now charges these other funds for these services via an interfund assessment, with a
corresponding General Fund revenue shown under “General Government” in the table above
(hence the dramatic change from 2018 to 2019 shown in the table above). This policy change
results in salary and benefit expenditures within the General Fund that appear higher than were
previously reported, but the change has a cost-neutral impact on the General Fund due to the
revenue offset. Total revenues recouped through Q2-2019 as general governmental revenues
in the General Fund for the salary and benefit interfund charges totaled $1.3 million.
2018 2019 2019
Revenue YTD Actual YTD Budget YTD Actual Amount Amount
General Government 41,605$ 1,309,673$ 1,294,500$ $ 1,252,895 3,011.4 % $ (15,174)(1.2)%
Public Safety 489,924 447,725 587,628 97,703 19.9 %139,903 31.2 %
Development Services 351,908 423,100 484,874 132,967 37.8 %61,774 14.6 %
Culture & Recreation 1,368,831 1,271,300 1,428,369 59,537 4.3 %157,069 12.4 %
YTD Total 2,252,268$ 3,451,798$ 3,795,370$ 1,543,102$ 68.5 % $ 343,572 10.0 %
Through June 2019
Charges for Services by Type
2019 vs. 2018 Actual 2019 vs. Budget
Percentage Percentage
$3.9 $4.3 $4.1 $4.2
$4.7
$3.8
$0.0
$1.0
$2.0
$3.0
$4.0
$5.0
$6.0
2014 2015 2016 2017 2018 2019
YTDMillionsCharges for Services
Actuals
16
Quarterly Financial Report Through Q2-2019 17
Public safety revenues consist of revenues received for police officer extra duty security
services, whereby officers are contracted for and reimbursement is made by the hiring agency.
This also includes reimbursements from the Muckleshoot Indian Tribe (MIT) for a full-time
dedicated police officer and associated expenditures as well as monies collected from the
Auburn School District and the Criminal Justice Training Commission (CJTC) for services
rendered. Public safety revenues collected through June 2019 totaled $588,000 as compared
to a budget of $448,000. The majority of the favorability seen in this revenue source is due to
extra duty overtime reimbursements exceeding budget expectations resulting from increased
requests for police officer security services.
Development services fee collections consist primarily of plan check fees, facility extension
charges, and zoning and subdivision fees. Through Q2-2019, development service fees totaled
$485,000 and ended the quarter $62,000 favorable to budget expectations. Total plan check
revenues collected through Q2-2019 totaled $242,000 compared to $204,000 collected through
Q2-2018 which is an 18.5% increase in revenues. Plan check revenues collected in the second
quarter of 2019 were from numerous commercial and residential projects including projects at
Boeing, Starbucks Distribution Warehouse, and Valley Cities Phoenix Rising. In addition to
increased plan check revenues collected through Q2-2019, both facility extension fees and
zoning fees were higher than anticipated.
$0.0
$0.2
$0.4
$0.6
$0.8
$1.0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecMillionsDevelopment Service Fees
2019 Budget
2019 YTD Actual
2018 Actual
17
Quarterly Financial Report Through Q2-2019 18
The majority of culture and recreation revenues are derived from green fees and pro shop sales
at the Auburn Golf Course, recreational classes, ticket sales at the Auburn Avenue Theater,
special events, and athletic league fees. Culture and recreation revenues collected through Q2-
2019 totaled $1.4 million, exceeding collections in the same period last year by $60,000 and
exceeding Q2-2019 budget by $157,000. The majority of the year-over-year increase in
revenues was in green fee revenues at the Auburn Golf Course and increased ticket sales at
the Auburn Avenue Theater. Through Q2-2019, green fee revenues at the Auburn Golf Course
increased 5.6%, or $29,000 and ticket sales at the Auburn Avenue Theater increased 31.1%, or
$26,000, compared to the same period last year.
$1.1
$1.4
$1.0
$0.9 $0.9
$0.5
$0.0
$0.2
$0.4
$0.6
$0.8
$1.0
$1.2
$1.4
$1.6
2014 2015 2016 2017 2018 YTD 2019MillionsDevelopment Service Fees
Actuals
$0.0
$0.2
$0.4
$0.6
$0.8
$1.0
$1.2
$1.4
$1.6
$1.8
$2.0
$2.2
$2.4
$2.6
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecMillionsCulture & Recreation
2019 Budget
2019 YTD Actual
2018 Actual
18
Quarterly Financial Report Through Q2-2019 19
Fines & Penalties include civil penalties (such as code compliance fines), parking and traffic
infraction penalties, criminal fines (including criminal traffic, criminal non-traffic and other
criminal offenses) as well as non-court fines such as false alarm fines. Total revenues collected
through the first half of 2019 totaled $443,000 and compare to a budget of $456,000.
As seen in the table below, civil penalty revenues collected through Q2-2019 were $14,000
higher than collections through Q2-2018. This year-over-year increase relates to revenues
collected for code compliance penalties, which are largely unbudgeted. Code compliance
penalties are revenues collected from banks on vacant bank-owned properties that are
neglected and in non-compliance with City code.
$2.2 $2.3 $2.3 $2.4
$2.6
$1.4
$0.0
$0.5
$1.0
$1.5
$2.0
$2.5
$3.0
2014 2015 2016 2017 2018 2019
YTDMillionsCulture & Recreation Revenues
Actuals
2018 2019 2019
Month YTD Actual YTD Budget YTD Actual Amount Amount
Civil Penalties 49,378$ 6,500$ 63,356$ $ 13,978 28.3 % $ 56,856 874.7 %
Civil Infraction Penalties 262,485 259,200 219,147 (43,338) (16.5)%(40,053) (15.5)%
Redflex Photo Enforcement 4,616 0 1,749 (2,867) (62.1)%1,749 N/A %
Parking Infractions 68,184 76,800 66,550 (1,634) (2.4)%(10,250) (13.3)%
Criminal Traffic Misdemeanor 28,616 25,800 15,508 (13,108) (45.8)%(10,292) (39.9)%
Criminal Non-Traffic Fines 26,032 21,400 34,721 8,689 33.4 %13,321 62.2 %
Criminal Costs 23,337 26,500 10,174 (13,163) (56.4)%(16,326) (61.6)%
Non-Court Fines & Penalties 40,938 40,200 31,956 (8,983) (21.9)%(8,244) (20.5)%
YTD Total 503,588$ 456,400$ 443,163$ $ (60,424)(12.0)% $ (13,237)(2.9)%
Through June 2019
Fines & Penalties by Type
2019 vs. 2018 Actual 2019 vs. Budget
Percentage Percentage
19
Quarterly Financial Report Through Q2-2019 20
$0.0
$0.1
$0.2
$0.3
$0.4
$0.5
$0.6
$0.7
$0.8
$0.9
$1.0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecMillionsFines & Penalties
2019 Budget
2019 YTD Actual
2018 Actual
$1.2
$0.9 $0.9 $0.9 $0.9
$0.4
$0.0
$0.2
$0.4
$0.6
$0.8
$1.0
$1.2
$1.4
$1.6
2014 2015 2016 2017 2018 2019
YTDMillionsFines & Penalties
Actuals
20
Quarterly Financial Report Through Q2-2019 21
Miscellaneous revenues consist of investment earnings, income from facility rentals, revenue
collected on golf cart rentals at the Auburn Golf Course, contributions & donations, and other
income including the quarterly purchasing card (P-card) rebate monies (see page 36 for more
information on P-cards). Revenues collected in this category through Q2-2019 totaled $983,000
and exceeded budget expectations by $232,000, or 30.9%. The majority of this increase was in
the other miscellaneous revenue category and was due to one-time unbudgeted monies.
Interest and investments revenue collected through Q2-2019 totaled $237,000 and exceeded
budget expectations by $63,000. Interest and investments earnings collected through Q2-2019
were $61,000 higher that collections in the same period last year. The primary reason for the
year-over-year increase in revenues is due to an increase in the State Investment Pool interest
rate.
Rents and lease revenue collected through Q2-2019 totaled $507,000 and was $65,000
favorable to budget. This favorability to budget was mainly due to facility rentals – unbudgeted
miscellaneous parks unearned revenue (deposits) totaling $61,000 through Q2-2019. In
addition, revenues collected for the Farmer’s Market vendors through Q2-2019 were $16,000
higher than what was collected through Q2-2018 due to vendors pre-paying their fees in
advance in order to receive a discount as well as an increased number of vendors participating
this year due to the new location at Les Gove Park.
2018 2019 2019
Month YTD Actual YTD Budget YTD Actual Amount Amount
Interest & Investments 176,279$ 174,000$ 237,171$ 60,892$ 34.5 %63,171$ 36.3 %
Rents & Leases 525,096 441,800 506,788 (18,308)(3.5)%64,988 14.7 %
Contributions & Donations 16,196 9,300 18,676 2,480 15.3 %9,376 100.8 %
Other Miscellaneous Revenue 150,102 126,000 220,487 70,385 46.9 %94,487 75.0 %
YTD Total 867,673$ 751,100$ 983,122$ 115,449$ 13.3 %232,022$ 30.9 %
Miscellaneous Revenues by Type
Through June 2019
2019 vs. 2018 2019 vs. Budget
Percentage Percentage
$1.0 $1.0
$1.2
$1.5
$1.8
$1.0
$0.0
$0.2
$0.4
$0.6
$0.8
$1.0
$1.2
$1.4
$1.6
$1.8
$2.0
2014 2015 2016 2017 2018 2019
YTDMillionsMiscellaneous Revenues
Actuals
21
Quarterly Financial Report Through Q2-2019 22
Real Estate Excise Tax (REET) revenue is receipted into the Capital Improvement Projects
Fund and is used for governmental capital projects. REET revenue represents taxes on the
sale of both commercial properties and single-family residences. REET revenues collected in
the first half of 2019 totaled $2.0 million, exceeding budget expectations by $725,000.
Commercial sales in Q2-2019 included the sale of several commercial warehouses/industrial
businesses, several multi-family complexes, a strip mall, an auto dealership, a medical/dental
building and vacant land.
2018 2019 2019
Month Actual Budget Actual Amount Amount
Jan 240,414$ 210,100$ 383,547$ 143,132$ 59.5 %173,447$ 82.6 %
Feb 200,783 210,100 206,022 5,239 2.6 %(4,078) (1.9)%
Mar 255,218 210,100 229,181 (26,037) (10.2)%19,081 9.1 %
Apr 362,999 210,100 315,855 (47,144) (13.0)%105,755 50.3 %
May 427,054 210,100 372,394 (54,661) (12.8)%162,294 77.2 %
Jun 371,816 210,100 478,537 106,720 28.7 %268,437 127.8 %
YTD Total 1,858,286$ 1,260,600$ 1,985,536$ 127,250$ 6.8 %724,936$ 57.5 %
Real Estate Excise Tax Revenues
June 2019
Percentage
2019 vs. 2018 2019 vs. Budget
Percentage
$0.0
$0.5
$1.0
$1.5
$2.0
$2.5
$3.0
$3.5
$4.0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecMillionsReal Estate Excise Tax
2019 Budget
2019 YTD Actual
2018 Actual
22
Quarterly Financial Report Through Q2-2019 23
$2.5
$4.6 $4.3
$3.6 $3.8
$2.0
$0.0
$1.0
$2.0
$3.0
$4.0
$5.0
$6.0
2014 2015 2016 2017 2018 2019
YTDMillionsReal Estate Excise Tax Revenues
Actuals
23
Quarterly Financial Report Through Q2-2019 24
Pet Licensing
Pet licensing services are provided by the Auburn Valley Humane Society. Through Q2-2019,
2,277 pet licenses were sold, resulting in $60,735 in revenue. Through Q2-2018 a total of 2,112
licenses were sold, resulting in $55,525 in revenue.
EXTEND EXTEND
0
1,000
2,000
3,000
4,000
5,000
6,000
$0
$20
$40
$60
$80
$100
$120
$140
JanFebMarAprMayJunJulAugSepOctNovDecNumber of Licenses IssuedLicense Revenue( thousands )Cumulative Pet Licensing Revenues & Licenses Sold
2019 vs 2018
2019 License Revenue
2019 Licenses Issued
2018 Licenses Issued
0
500
1,000
1,500
2,000
2,500
$0
$5
$10
$15
$20
$25
JanFebMarAprMayJunJulAugSepOctNovDecNumber of Licenses IssuedLicense Revenue( thousands )Pet Licensing Revenues vs Licenses Sold
2019 vs 2018
2018 License Revenue
2019 License Revenue
2018 Licenses Issued
2019 Licenses Issued
24
Quarterly Financial Report Through Q2-2019 25
Street Funds
This section provides a financial overview of the City’s three street funds for the quarter ending
June 30, 2019. The City’s three street funds include the Arterial Street Fund (Fund 102), the
Local Street Fund (Fund 103), and the Arterial Street Preservation Fund (Fund 105).
Fund 102 – Arterial Street Fund
The Arterial Street Fund is a special revenue fund that is funded by transportation grants, traffic
impact fees, a portion of the City’s gas tax receipts, Public Works Trust Fund loans, developer
contributions, and other sources. As of June 30, 2019 there were 29 separate street projects
budgeted in this fund.
Through Q2-2019, revenues collected totaled $1.1 million as compared to collections of $1.3
million through Q2-2018. Total expenditures through Q2-2019 were $1.2 million as compared to
$2.1 million expended through Q2-2018. Variances in revenues and expenditures are largely
due to the timing of capital expenditures and any subsequent reimbursement via grants and/or
operating transfers. Expenditure timing is generally determined by the current phase of each
individual capital project; expenditures tend to increase as projects move from design phase into
construction. In addition, several inclement weather situations during Q1-2019 were not
conducive to street construction.
Fund 102 - Arterial Street 2018
Summary of Sources and Uses 2019 2019 YTD 2019 YTD 2018 YTD
Report Period: June 2019 Budget Budget Actual Actual Amount
Revenues
Federal Grants 1,001,381$ 297,173$ 382,510$ 323,675$ 85,338$ 28.7 %
State Grants - - - - -
Motor Vehicle Fuel and Multimodal Taxes 620,000 290,054 292,256 303,360 2,202 0.8 %
Developer Contributions - - - - -
Miscellaneous Revenue - - - 1,313 -
Operating Transfer In 1,367,060 598,272 417,552 613,996 (180,720) (30.2)%
Investment Income 28,300 12,231 22,526 14,465 10,295 84.2 %
Total Revenues 3,016,741$ 1,197,730$ 1,114,845$ 1,256,809$ (82,885)$ (6.9)%
Expenditures
Salary and Benefits 132,000$ 69,639$ 133,674$ 196,445$ (64,035)$ (92.0)%
Capital Outlay 2,964,858 1,048,075 760,234 1,431,033 287,841 27.5 %
Subtotal - Capital Project Expenditures 3,096,858 1,117,714 893,908 1,627,477 223,806 20.0 %
Services and Charges 400,000 115,798 44,422 170,642 71,376 61.6 %
Interfund Payments for Services 78,100 39,050 39,050 39,432 (0) (0.0)%
Debt Service Principal and Interest 208,300 208,300 208,122 208,817 178 0.1 %
Operating Transfer Out 68,196 22,732 53,933 15,490 (31,201) (137.3)
Total Expenditures 3,851,454$ 1,503,594$ 1,239,435$ 2,061,858$ 264,159$ 17.6 %
Net Change in Fund Balance (834,713)$ (305,864)$ (124,590)$ (805,049)$ 181,274$ (59.3)%
Beg. Fund Balance, January 2019 2,104,190$
Net Change in Fund Balance, June 2019 (124,590)
Ending Fund Balance, June 2019 1,979,600$
2019 Budgeted Ending Fund Balance 1,269,477$
2019 2019 YTD Budget vs. Actual
Favorable (Unfavorable)
Percentage
25
Quarterly Financial Report Through Q2-2019 26
The table below presents the status of the projects with the most significant budget impact on
the fund. Many capital projects are budgeted over multiple years; what is displayed below is the
2019 portion of each project’s budget and year-to-date expenditures.
Notes:
• The numbers above do not include the effects of Budget Adjustment #3, which will be included in the Q3-
2019 financial report. This added a recent grant and matching funds for the Auburn Way South Corridor
Widening Project in the amount of $1.5M for the design phase.
• Several large multi-year projects are reaching completion of construction in 2019 and several large projects
are beginning design, with construction anticipated in 2020.
$0.0
$0.5
$1.0
$1.5
$2.0
$2.5
$3.0
$3.5
$4.0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecMillionsFund 102 -Capital Project Expenditures
2019 YTD Budget
2019 YTD Actual
2018 YTD Actual
2019 YTD Actual:
$0.9M
2019 Budget:
$3.1M
2018 YTD Actual:
$1.6M
Name 2019 Budget YTD Actual Remaining
A St SE Corridor Signal Safety & Op. Imp.$0.4M $0.4M $0.0M
Evergreen Heights Safe Routes to School $0.3M $0.0M $0.3M
A St SE & 37th St SE $0.2M $0.1M $0.1M
All Other Projects (26 Others Budgeted)$2.2M $0.5M $1.7M
Total $3.1M $0.9M $2.2M
*Components may not sum to total due to rounding.
Fund 102 - Arterial Street
Capital Projects Status *
26
Quarterly Financial Report Through Q2-2019 27
Fund 103 – Local Street Fund
The Local Street Fund is a special revenue fund used for local street preservation. Effective
January 1, 2019 through 2020 this fund is funded at a specific annual amount by real estate
excise tax (REET 2) whereas, previously, the funding source was sales tax on construction.
Through Q2-2019, revenues in this fund totaled $1.1 million, which is slightly higher than budget
expectations due to strong performance in interest earnings. This compares to collections of
$1.3 million through Q2-2018. Expenditures through Q2-2019 were $244,000 and compare to
expenditures of $563,000 through Q2-2018. Historically, well over half of this fund’s annual
expenditures occur in the final four months of each year due to the weather sensitivity of
pavement construction (this work needs to be done primarily in the summer and early fall). In
addition, several inclement weather situations during Q1-2019 were not conducive to street
construction. Highlighted in the table below and shown in the following graph are the fund’s total
expenditures related to capital projects.
Fund 103 - Local Street Fund 2018
Summary of Sources and Uses 2019 2019 YTD 2019 YTD 2018 YTD
Report Period: June 2019 Budget Budget Actual Actual Amount
Revenues
Sales Tax on Construction -$ -$ -$ 1,139,316$ -$
Operating Transfer In 1,900,000 1,025,000 1,025,000$ 150,000 - 0.0 %
Interest Earnings 12,000 4,798 38,720$ 28,630 33,922 707.0 %
Total Revenues 1,912,000$ 1,029,798$ 1,063,720$ 1,317,946$ 33,922$ 3.3 %
Expenditures
Capital Salary and Benefits 231,616 114,802 17,168 - 97,634 85.0 %
Capital Outlay 3,217,860 601,052 209,640 487,757 391,412 65.1 %
Subtotal - Capital Project Expenditures 3,449,476 715,854 226,808 487,757 489,046 68.3 %
Admin Salary and Benefits - - 8,778 66,926 (8,778)$
Admin Services and Charges 40,700 19,676 357 2,236 19,320 98.2 %
Interfund Payments for Services 15,200 7,600 7,600 6,120 (0) (0.0)%
Operating Transfer Out - - - 145 -
Total Expenditures 3,505,376$ 743,130$ 243,542$ 563,184$ 499,588$ 67.2 %
Net Change in Fund Balance (1,593,376)$ 286,668$ 820,178$ 754,762$ 533,510$ 186.1 %
Beg. Fund Balance, January 2019 2,550,256$
Net Change in Fund Balance, June 2019 820,178
Ending Fund Balance, June 2019 3,370,434$
2019 Budgeted Ending Fund Balance 956,880$
2019 2019 YTD Budget vs. Actual
Favorable (Unfavorable)
Percentage
27
Quarterly Financial Report Through Q2-2019 28
The table below presents the status of the projects with the most significant budget impact on
the fund. Many capital projects are budgeted over multiple years; what is displayed below is the
2019 portion of each project’s budget and year-to-date expenditures.
Notes:
• The 2019 Local Street Pavement Reconstruction project was awarded June 17, 2019.
$0.0
$0.5
$1.0
$1.5
$2.0
$2.5
$3.0
$3.5
$4.0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecMillionsFund 103 -Capital Project Expenditures
2019 YTD Budget
2019 YTD Actual
2018 YTD Actual
2019 Budget :
$3.4M
2018 YTD Actual:
$0.5M
2019 YTD Actual:
$0.2M
Name 2019 Budget YTD Actual Remaining
2019 Local Street Reconstruction $2.6M $0.1M $2.4M
2018 Citywide Pavement Patch and Overlay $0.5M $0.1M $0.4M
2018 Local Street Pavement Reconstruction $0.3M $0.0M $0.2M
All Other Projects (1 Other Budgeted)$0.2M $0.0M $0.2M
Total $3.4M $0.2M $3.2M
*Components may not sum to total due to rounding.
Fund 103 - Local Street
Capital Projects Status*
28
Quarterly Financial Report Through Q2-2019 29
Fund 105 – Arterial Street Preservation Fund
The Arterial Street Preservation Fund is a special revenue fund that is primarily funded by a
1.0% utility tax that was adopted by Council in 2008; these utility tax revenues are restricted for
arterial street repair and preservation projects. Major projects budgeted within the Arterial Street
Preservation Fund in 2019 include A Street SE Preservation, 2019 Citywide Pavement Patching
& Overlay, and 2018 Citywide Pavement Patching & Overlay. Through Q2-2019 revenues
totaled $1.4 million, which is approximately $222,000 higher than the same period last year and
$45,000 higher than budget expectations.
Expenditures through Q2-2019 were $657,000 as compared to $266,000 through Q2-2018.
Historically, the majority of this fund’s expenditures occur in the second half of each year due to
the weather sensitivity of pavement construction (this work needs to be done primarily in the
summer and early fall). In addition, several inclement weather situations during Q1-2019 were
not conducive to street construction. Highlighted in the table below and shown in the following
graph are the fund’s total expenditures related to capital projects.
Fund 105 - Arterial Street Preservation 2018
Summary of Sources and Uses 2019 2019 YTD 2019 YTD 2018 YTD
Report Period: June 2019 Budget Budget Actual Actual Amount
Revenues
City Utility Tax 674,600$ 327,158$ 327,598$ 308,195$ 440$ 0.1 %
Electric Utility Tax 711,600 383,718 388,080 409,718 4,362 1.1 %
Natural Gas Utility Tax 201,600 136,067 125,730 139,803 (10,337) (7.6)%
Cable TV Tax 190,100 94,864 97,891 103,243 3,027 3.2 %
Telephone Utility Tax 235,600 121,706 95,747 126,231 (25,959) (21.3)%
Garbage Utility Tax (External Haulers)22,400 11,200 12,000 10,746 800 7.1 %
Grants 940,511 57,050 58,914 68,224 1,863 3.3 %
Operating Transfer In 746,279 248,760 310,802 33,845 62,042 24.9 %
Interest Earnings 29,800 14,900 24,102 19,095 9,202 61.8 %
Total Revenues 3,752,490$ 1,395,423$ 1,440,863$ 1,219,099$ 45,440$ 3.3 %
Expenditures
Salary and Benefits 241,000$ 110,750$ 253,618$ 170,299$ (142,868)$ (129.0)%
Capital Outlay 4,530,722 904,438 403,448 95,379 500,990 55.4 %
Subtotal - Capital Project Expenditures 4,771,722 1,015,188 657,066 265,678 358,122 35.3 %
Supplies - - - - -
Services and Charges 165,000 - - - -
Operating Transfer Out 26,831 8,944 - - 8,944 100.0
Total Expenditures 4,963,553$ 1,024,132$ 657,066$ 265,678$ 367,066$ 35.8 %
Net Change in Fund Balance (1,211,063)$ 371,292$ 783,798$ 953,421$ 412,506$ 111.1 %
Beg. Fund Balance, January 2019 2,580,480$
Net Change in Fund Balance, June 2019 783,798
Ending Fund Balance, June 2019 3,364,278$
2019 Budgeted Ending Fund Balance 1,369,417$
2019 2019 YTD Budget vs. Actual
Favorable (Unfavorable)
Percentage
29
Quarterly Financial Report Through Q2-2019 30
The table below presents the status of the projects with the most significant budget impact on
the fund. Many capital projects are budgeted over multiple years; what is displayed below is the
2019 portion of each project’s budget and year-to-date expenditures.
Notes:
• The A Street SE Preservation project was awarded June 3, 2019.
• The 2019 Citywide Patch and Overlay project was awarded May 6, 2019.
$0.0
$1.0
$2.0
$3.0
$4.0
$5.0
$6.0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecMillionsFund 105 -Capital Project Expenditures
2019 YTD Budget
2019 YTD Actual
2018 YTD Actual 2019 2019
Budget:
$4.8M
2018 2018 YTD
Actual:
$0.3M
2019 2019 YTD
Actual:
$0.7M
Name 2019 Budget YTD Actual Remaining
A Street SE Preservation $1.8M $0.0M $1.8M
2019 Citywide Pavement Patching & Overlay $1.0M $0.1M $1.0M
2018 Citywide Pavement and Patching Overlay $0.9M $0.2M $0.7M
All Other Projects (8 Others Budgeted)$1.0M $0.4M $0.6M
Total $4.8M $0.7M $4.1M
*Components may not sum to total due to rounding.
Capital Projects Status*
Fund 105 - Arterial Street Preservation
30
Quarterly Financial Report Through Q2-2019 31
Fund 124 – Mitigation Fees
The Mitigation Fees fund is a special revenue fund funded from revenues from fees for new
development that are assessed at the time applications are received for development activity.
These revenues are used to address costs associated with City growth.
The fund houses two types of revenues: mitigation fees and impact fees. Mitigation fees are
variable charges collected as a result of State Environmental Policy Act (SEPA) reviews and the
City’s determination that a project must pay additional fees to compensate for a unique effect
that it has on the community. Impact fees are set charges collected automatically for a variety of
projects. These fees are adopted annually by the City Council based on projects anticipated in
the Capital Facilities Plan over the next six years.
About $1.6 million, or nearly 100%, of annual budgeted revenues were received through Q2-
2019. This significant favorable revenue performance was driven by the receipt of nearly
$600,000 in traffic impact fee revenue in Q2 from the Young’s Market truck warehouse and
distribution center. Additionally, a transfer-in of approximately $400,000 was completed in May
to pay for traffic mitigation fees related to the Legacy Senior Housing Project and the Auburn
Town Center.
Expenditures were significantly below budget due to the timing of capital projects funded by
these revenues. Of the twelve projects funded by parks impact fee revenues, only the Brannan
Park Synthetic Infield project has seen significant progress. There are three projects budgeted
with parks impact fee funding of at least $500,000 that have had minimal expenditures. A
substantial portion of the year-to-date expenditures of transportation impact fee revenue
consists of scheduled debt service payments.
Fund 124 - Mitigation Fees
Summary of Sources and Uses
Report Period Through:Ending Ending
June 2019 Fund Balance Fund Balance
Transportation Impact Fees 800,000$ 1,189,129$ 5,115,601$ 963,003$ 317,552$ 5,980,184$
Transportation Migitation Fees - 51,100 67,905 1,353 - 120,961
Fire Impact Fees 100,000 75,000 212,773 45,674 - 277,432
Fire Mitigation Fees - - 81 - - 81
Parks Impact Fees 100,000 2,457,077 3,086,936 38,500 296,997 5,332,299
Parks Mitigation Fees - 300,000 40,702 - - 341,614
School Impact Admin Fees 1,200 - 58,515 628 - 67,212
Wetland Mitigation Fees - 36,600 33,861 - - 70,972
Interest and Investment Income 195,000 - 195,000 148,112 - 148,112
Fees in Lieu of Improvements - 100,000 24,413 - 100,000 25,634
Operating Transfers-In 416,200 - 416,200 398,528 - 398,528
Total 1,612,400$ 4,208,906$ 9,251,987$ 1,595,797$ 714,550$ 12,763,028$
Beginning Fund Balance, January 2019 11,881,781$
Net Change in Fund Balance, June 2019 881,248
Ending Fund Balance, June 2019 12,763,028$
2019 Budgeted Ending Fund Balance 9,251,987$
YTD ACTUALSBUDGET
Revenues ExpendituresRevenuesExpenditures
31
Quarterly Financial Report Through Q2-2019 32
Enterprise Funds
Detailed income and expense statements for Enterprise and Internal Service funds can be
found in an attachment at the end of this report. The attachment provides operating and – as
applicable – capital fund reports for these funds showing budget, actuals, and variances.
Operating funds house all the operating costs along with debt service and financing obligations.
Capital funds show costs associated with capital acquisition and construction. Both the
operating and capital funds have a working capital balance. This approach isolates those funds
available for capital and cash flow needs for daily operations, and project managers will know
exactly how much working capital is available for current and planned projects.
Through Q2-2019 the Water Utility had operating income of $2.4 million as compared to $2.1
million through Q2-2018. Total Water Fund operating revenues were $424,000 higher than in
Q2-2018, mainly due to strong performance in water sales and interest income. Water sales
revenue is directly impacted by the rate changes, which were implemented across all water
consumption categories. Operating expenditures through Q2-2019 were up $112,000, or 2.5%
from Q2-2018. This variance is mainly due to increases in personnel costs and to increased
interfund taxes associated with utility revenues.
Water sales by volume through June 2019 totaled 1.4 million hundred cubic feet (ccf) as
compared to 1.3 million ccf through June 2018, an increase of 9.2%. Total consumption was up
across all customer categories except school and wholesale. Large increases were also seen in
single family and commercial usage. While overall consumption has increased compared to the
same period last year, the Water utility has seen a general trend of decreased year-over-year
consumption per account due largely to conservation efforts and appliance efficiency
improvements.
0
100,000
200,000
300,000
400,000
500,000
600,000
700,000
800,000
900,000
1,000,000
$0
$200
$400
$600
$800
$1,000
$1,200
$1,400
$1,600
$1,800
$2,000
CCFThousandsWater Revenues vs Water Sold
2019 vs 2018
2018 Water Sales ($)
2019 Water Sales ($)
2018 Water Sold (ccf)
2019 Water Sold (ccf)
32
Quarterly Financial Report Through Q2-2019 33
The Sewer Utility finished Q2-2019 with operating income of $1.5 million as compared to $1.0
million through Q2-2018. Increased revenues from charges for City sewer service following the
rate adjustment in January 2019 account for about half of the favorable variance; the remainder
consists mainly of a $203,000 refund from the Department of Revenue for overpayment of
excise tax.
Year-to-date operating expenditures in the Sewer Utility are nearly equal to Q2-2018, and the
percentage of annual expenditure budget used is less than 1% different (43.5% of budget used,
versus 43.2% through Q2-2018). Budget usage through the second quarter has remained
consistent for the last several years.
Through Q2-2019, the Stormwater Utility had operating income of $1.5 million compared with
$1.3 million through Q2-2018. Operating revenues are up $165,000 compared to Q2-2018 due
to charges for City storm service, which saw increases to all non-single family variable rates, as
well as from strong investment income performance.
Operating expenditures in the Stormwater Utility are down $103,000 from Q2-2018, contributing
to the higher operating income noted above. Factors contributing to this include a decrease in
spending on repairs and maintenance and the timing of certain intergovernmental payments.
Through Q2-2019 the Solid Waste Utility Fund had $8.0 million in operating revenues,
compared to $7.7 million in operating expenditures. The City of Auburn’s Solid Waste services
are outsourced to Waste Management and to Republic Services, who manages the contract for
the annexed areas. As of June 2019, Waste Management serviced 15,498 customers (79% of
customers) and Republic Services serviced 4,117 customers (21% of customers).
The current mix of solid waste customer account types is:
• 89.7% Residential
• 7.8% Commercial
• 2.5% Multifamily
The “diversion rate” is a measure of how much generated waste is not sent to the landfill; i.e.,
waste that is either recycled or collected yard waste. Through Q2-2019, the total diversion rate
was 28.6%, which represents a total of 9,900 tons of waste that was diverted from landfills.
33
Quarterly Financial Report Through Q2-2019 34
2019 Tons Collected and Diversion Rates:
Of the total tonnage collected through Q2-2019, 33% was collected from residential customers,
14% from multifamily customers, and 53% from commercial customers, as shown in the
following graph.
e: 50%
22%
e: 17%
e: 29%
Garbage-
5,740 tons
(50.2%)
Yard Waste-
3,609 tons
(31.5%)
Recycling-
2,093 tons
(18.3%)
Q2-2019 Residential Waste Stream
Garbage
Yard Waste
Recycling
Garbage-
3,781 tons
(78%)
Yard Waste-
284 tons
(5.9%)
Recycling-
780 tons
(16.1%)
Q2 -2019 Multifamily Waste Stream
Garbage
Yard Waste
Recycling
Total: 4,845 tons collected
Diversion Rate: 22%
Garbage-
15,225 tons
(82.9%)
Yard Waste-
101 tons
(0.5%)
Recycling-
3,036 tons
(16.5%)
Q2-2019 Commercial Waste Stream
Garbage
Yard Waste
Recycling
Total: 18,361 tons collected
Diversion Rate: 17%
Garbage-
24,746 tons
(71.4%)
Yard Waste-
3,993 tons
(11.5%)
Recycling-
5,909 tons
(17.1%)
Q2-2019 Total Waste Stream
Garbage
Yard Waste
Recycling
Total: 34,648 tons collected
Diversion Rate: 29%
Total: 11,442 tons collected
Diversion Rate: 50%
6,016
4,562
5,433
6,489 6,482
5,666
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
Jan-19 Feb-19 Mar-19 Apr-19 May-19 Jun-19 Jul-19 Aug-19 Sep-19 Oct-19 Nov-19 Dec-19TonnageSolid Waste Tonnage by Customer Type
Residential Multifamily Commercial
34
Quarterly Financial Report Through Q2-2019 35
Since January 1, 2016 the Auburn Municipal Airport has been managed by the City of Auburn’s
Public Works Department. Starting January 1, 2019 the City transitioned from contracted
management services through a third-party management company (AMG) and began
management of the Airport with in-house staffing.
The Airport Fund finished Q2-2019 with operating income of $239,000 as compared with
operating income of $146,000 through Q2-2018. Operating revenues in the Airport Fund are up
$223,000 over Q2-2018, largely due to sales of aviation fuel. Aviation fuel was previously sold
by AMG, with a portion of the profit remitted to the City. Currently the City sells fuel directly, and
recovers all associated revenue.
Operating expenditures in the Airport Fund through Q2-2019 have increased by $130,000 over
the same period last year. A significant portion of this increase is due to the purchase of aviation
fuel for resale; the balance represents interfund charges related to City internal services, public
utility costs, and interfund transfers to fund one-time technology and vehicle purchases.
Through Q2-2019, the Cemetery Fund experienced operating income of $115,000 as
compared with an operating income of $111,000 through Q2-2018. While sales of lots have
decreased from 2018, this is offset by increases in openings/closings and sales of liners and
markers. Overall, operating revenues are up by $32,000, or 4.6% while operating expenditures
are up $29,000, or 4.8%, from the same period last year.
Internal Service Funds
Operating expenditures within the Insurance Fund represent the premium cost pool that will be
allocated monthly to other City funds over the course of 2019. As a result, the expenditure
balance gradually diminishes each month throughout the year.
No significant variances are reported in the Workers’ Compensation, Facilities, Innovation &
Technology, or Equipment Rental Funds.
$0
$200
$400
$600
$800
$1,000
$1,200
$1,400
$1,600
ThousandsCEMETERY
2019 Budgeted
Revenue
2019 YTD Actual
Revenue
2018 Actual Revenue
2019 YTD Actual
Expenses
Cumulative Revenues & Expenditures
2019 Budget vs. Actual
35
Quarterly Financial Report Through Q2-2019 36
Investment Portfolio
The City’s total cash and investments at the end of the Q2-2019 totaled $147.8 million, and
compares to $140.3 million at the end of Q1-2019. [attachment]
P-Card Statistics
The City has been actively promoting the use of P-Cards in lieu of purchase orders to minimize
effort and maximize incentive payments from the vendor and the State. In Q2-2019, 4,234
P-Card transactions were processed as compared with 1,128 purchase order transactions.
Total incentive payments received from US Bank in Q1-2019 totaled $26,377. These are
estimated payments since the quarterly rebate checks are not actually received until the next
quarter. Additionally, there is an annual incentive payment from the State that is received in Q2
of each year. The annual State incentive payment for 2018 was $27,723 and was received in
April of 2019.
Contact Information
This report is prepared by the Finance Department. Additional financial information can also be
viewed at our website: http://www.auburnwa.gov/. For any questions about this report please
contact Jamie Thomas at jdthomas@auburnwa.gov.
921
3,924
1,128
4,234
-
1,000
2,000
3,000
4,000
5,000
Purchase
Order
Transactions
PCard
Transactions
PCard
Incentives
Received
(see text)TransactionsPurchase Order and PCard Transactions
2018 and 2019
Q2
$25,372 $26,377
2,065
8,190
$71,820
2,215
8,133
$76,716
-
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
20,000
Purchase
Order
Transactions
PCard
Transactions
PCard
Incentives
Received
(see text)Transactions2018 and 2019
YTD
2018 2019
36
Investment Purchase Book Maturity Yield to
Type Date Value Date Maturity
State Investment Pool Various 100,953,718$ Various 2.51%
KeyBank Money Market Various 4,718,600 Various 0.15%
OpusBank Public Interest Acct Various 10,346,908 Various 2.56%
FHLB 2/28/2018 2,001,840 2/28/2023 2.65%
FFCB 5/21/2018 1,997,160 10/21/2019 2.48%
FAMCA 6/27/2018 1,999,940 7/16/2020 2.50%
FFCB 7/16/2018 2,000,620 7/16/2020 2.60%
TX ST-BABs-A 8/8/2018 1,761,620 4/1/2020 2.68%
FFCB 8/27/2018 2,004,660 2/23/2021 2.70%
RFCSP 10/5/2018 5,032,674 10/15/2019 2.69%
RFCSP 12/14/2018 5,012,903 7/15/2020 2.73%
RFCSP 2/19/2019 4,999,824 1/15/2021 2.52%
RFCSP 5/9/2019 4,999,802 10/15/2020 2.23%
Total Cash & Investments 147,830,269$ 2.447%
Investment Mix % of Total
State Investment Pool 68.3%Current 6-month treasury rate 2.17%
KeyBank Money Market 3.2%Current State Pool rate 2.51%
OpusBank Public Interest Acct 7.0%KeyBank Money Market 0.15%
FHLB 1.4%OpusBank Public Interest Acct 2.56%
FFCB 4.1%Blended Auburn rate 2.45%
FAMCA 1.4%
TX ST-BABs-A 1.2%
RFCSP 13.6%
100.0%
City of Auburn
Investment Portfolio Summary
June 30, 2019
Summary
37
SALES TAX SUMMARY
JUNE 2019 SALES TAX DISTRIBUTIONS (FOR APRIL 2019 RETAIL ACTIVITY)
2018 Annual Total 2018 YTD 2019 YTD YTD 2018 Annual Total 2018 YTD 2019 YTD YTD
NAICS CONSTRUCTION (Nov '17-Oct '18)(Nov '17-Apr -18)(Nov '18-Apr 19)% Diff NAICS AUTOMOTIVE (Nov '17-Oct '18)(Nov '17-Apr -18)(Nov '18-Apr 19)% Diff
236 Construction of Buildings 1,257,918 655,180 470,003 -28.3%441 Motor Vehicle and Parts Dealer 3,843,704 1,887,904 1,834,132 -2.8%
237 Heavy and Civil Construction 170,543 68,876 70,664 2.6%447 Gasoline Stations 278,087 132,598 130,848 -1.3%
238 Specialty Trade Contractors 881,157 415,260 410,317 -1.2%TOTAL AUTOMOTIVE 4,121,791$ 2,020,503$ 1,964,979$ -2.7%
TOTAL CONSTRUCTION 2,309,617$ 1,139,316$ 950,985$ -16.5%Overall Change from Previous Year (55,523)$
Overall Change from Previous Year (188,331)$
2018 Annual Total 2018 YTD 2019 YTD YTD
2018 Annual Total 2018 YTD 2019 YTD YTD NAICS RETAIL TRADE (Nov '17-Oct '18)(Nov '17-Apr -18)(Nov '18-Apr 19)% Diff
NAICS MANUFACTURING (Nov '17-Oct '18)(Nov '17-Apr -18)(Nov '18-Apr 19)% Diff 442 Furniture and Home Furnishings 209,879 104,300 106,324 1.9%
311 Food Manufacturing 7,745 3,217 4,736 47.2%443 Electronics and Appliances 229,028 112,421 142,182 26.5%
312 Beverage and Tobacco Products 12,379 6,214 6,402 3.0%444 Building Material and Garden 576,468 252,997 303,155 19.8%
313 Textile Mills 559 297 145 -51.3%445 Food and Beverage Stores 387,928 183,687 191,447 4.2%
314 Textile Product Mills 1,860 760 1,475 94.1%446 Health and Personal Care Store 420,087 201,383 226,861 12.7%
315 Apparel Manufacturing 347 145 281 94.0%448 Clothing and Accessories 1,170,083 588,758 600,572 2.0%
316 Leather and Allied Products 221 24 205 747.9%451 Sporting Goods, Hobby, Books 220,869 109,173 126,609 16.0%
321 Wood Product Manufacturing 16,224 6,628 6,675 0.7%452 General Merchandise Stores 870,096 478,419 416,758 -12.9%
322 Paper Manufacturing 12,982 4,093 7,137 74.4%453 Miscellaneous Store Retailers 689,386 320,709 442,114 37.9%
323 Printing and Related Support 46,020 24,501 20,787 -15.2%454 Nonstore Retailers 267,088 149,165 117,659 -21.1%
324 Petroleum and Coal Products 9,780 5,511 3,908 -29.1%TOTAL RETAIL TRADE 5,040,912$ 2,501,011$ 2,673,680$ 6.9%
325 Chemical Manufacturing 12,512 5,868 5,056 -13.8%Overall Change from Previous Year 172,669$
326 Plastics and Rubber Products 8,844 4,791 3,413 -28.8%
327 Nonmetallic Mineral Products 21,776 7,698 10,175 32.2%
331 Primary Metal Manufacturing 4,065 683 26,883 3837.5%2018 Annual Total 2018 YTD 2019 YTD YTD
332 Fabricated Metal Product Manuf 26,115 11,740 17,367 47.9%NAICS SERVICES (Nov '17-Oct '18)(Nov '17-Apr -18)(Nov '18-Apr 19)% Diff
333 Machinery Manufacturing 24,283 13,530 13,273 -1.9%51*Information 637,625 332,048 327,241 a -1.4%
334 Computer and Electronic Product 7,184 3,481 2,080 -40.2%52*Finance and Insurance 140,135 71,874 69,284 -3.6%
335 Electric Equipment, Appliances 791 346 122 -64.9%53*Real Estate, Rental, Leasing 367,824 184,859 221,094 19.6%
336 Transportation Equipment Man 488,093 214,293 233,575 9.0%541 Professional, Scientific, Tech 253,684 120,935 160,837 33.0%
337 Furniture and Related Products 19,899 10,490 12,726 21.3%551 Company Management 16 5 27 487.1%
339 Miscellaneous Manufacturing 32,607 15,698 18,548 18.2%56*Admin. Supp., Remed Svcs 423,760 192,566 245,412 27.4%
TOTAL MANUFACTURING 754,285$ 340,007$ 394,967$ 16.2%611 Educational Services 47,224 22,465 20,814 -7.4%
Overall Change from Previous Year 54,961$ 62*Health Care Social Assistance 93,420 45,791 49,202 7.4%
71*Arts and Entertainment 119,180 49,109 40,797 -16.9%
72*Accommodation and Food Svcs 1,435,327 687,679 699,125 1.7%
2018 Annual Total 2018 YTD 2019 YTD YTD 81*Other Services 560,054 271,126 292,755 8.0%
NAICS TRANSPORTATION AND WAREHOUSING (Nov '17-Oct '18)(Nov '17-Apr -18)(Nov '18-Apr 19)% Diff 92*Public Administration 150,574 63,924 647 -99.0%
481 Air Transportation 3 0 0 N/A TOTAL SERVICES 4,228,822$ 2,042,381$ 2,127,235$ 4.2%
482 Rail Transportation 25,453 13,351 11,065 -17.1%Overall Change from Previous Year 84,854$
484 Truck Transportation 26,564 2,780 7,642 174.9%
485 Transit and Ground Passengers 56 34 24 -30.4%
488 Transportation Support 52,211 27,619 19,364 -29.9%2018 Annual Total 2018 YTD 2019 YTD YTD
491 Postal Service 1,007 659 367 -44.3%NAICS MISCELLANEOUS (Nov '17-Oct '18)(Nov '17-Apr -18)(Nov '18-Apr 19)% Diff
492 Couriers and Messengers 1,359 1,074 144 -86.6%000 Unknown 0 0 0 N/A
493 Warehousing and Storage 13,554 7,474 5,541 -25.9%111-115 Agriculture, Forestry, Fishing 3,656 1,737 2,950 69.9%
TOTAL TRANSPORTATION 120,208$ 52,991$ 44,147$ -16.7%211-221 Mining & Utilities 26,370 9,996 11,349 13.5%
Overall Change from Previous Year (8,844)$ 999 Unclassifiable Establishments 123,605 63,266 115,199 82.1%
TOTAL SERVICES 153,632$ 74,998$ 129,498$ 72.7%
Overall Change from Previous Year 54,500$
2018 Annual Total 2018 YTD 2019 YTD YTD
NAICS WHOLESALE TRADE (Nov '17-Oct '18)(Nov '17-Apr -18)(Nov '18-Apr 19)% Diff
423 Wholesale Trade, Durable Goods 1,147,872 603,177 571,144 -5.3%GRAND TOTAL 18,198,285$ 8,916,034$ 8,996,990$
424 Wholesale Trade, Nondurable 315,956 139,479 136,350 -2.2%Overall Change from Previous Year 80,957$ 0.9%
425 Wholesale Electronic Markets 5,189 2,172 4,005 84.5%
TOTAL WHOLESALE 1,469,017$ 744,827$ 711,499$ -4.5%Total June 2019 Sales Tax Distributions 1,504,125$
Overall Change from Previous Year (33,328)$ Dollar Increase from June 2018 142,107$
Percent Increase from June 2018
Comparisons:
Includes Adjustments in excess of +/- $10,000.June 2018 8,916,034 7,554,016 1,362,018$
a. WA State Department of Revenue audit adjustment to sales tax returns for February 2019 Reporting (adjustment: $14,165).June 2017 8,493,080 7,169,390 1,323,690$
06/24/19
Prepared by Auburn Finance Department
10.4%
38
Budget
YTD
Actual Variance Budget
YTD
Actual Variance Budget
YTD
Actual Variance Budget
YTD
Actual Variance
OPERATING FUND:460 460 461 461 462 462
OPERATING REVENUES
Charges For Service 15,471,500 6,688,661 (8,782,839) 9,014,200 4,442,525 (4,571,675) 18,370,000 9,041,997 (9,328,003) 10,085,900 5,034,758 (5,051,142)
Grants - - - - - -
Interest Earnings 20,000 113,006 93,006 20,000 70,222 50,222 2,500 14,450 11,950 15,000 66,373 51,373
Rents, Leases, Concessions, & Other 187,000 100,412 (86,588) 70,000 238,166 168,166 - - - 56,000 38,178 (17,822)
TOTAL OPERATING REVENUES 15,678,500 6,902,079 (8,776,421) 9,104,200 4,750,913 (4,353,287) 18,372,500 9,056,447 (9,316,053) 10,156,900 5,139,309 (5,017,591)
OPERATING EXPENSES
Salaries & Wages 2,472,136 1,175,080 1,297,056 1,478,205 696,052 782,153 - - - 2,511,990 1,164,762 1,347,228
Benefits 1,335,528 605,501 730,027 783,349 359,360 423,989 - - - 1,329,580 586,678 742,902
Supplies 364,244 132,217 232,027 164,550 37,758 126,792 - - - 84,550 39,612 44,938
Other Service Charges 4,455,849 1,336,256 3,119,593 2,912,150 1,316,366 1,595,784 18,215,600 8,922,306 9,293,294 1,994,100 739,609 1,254,491
Intergovernmental Services (Less Transfers Out)- - - - - -
Waste Management Payments See Note
Sewer Metro Services - - -
Debt Service Interest 1,092,600 376,984 715,616 245,500 131,058 114,442 - - - 311,100 169,233 141,867
Interfund Operating Rentals & Supplies 1,773,617 896,637 876,980 1,391,917 705,787 686,130 - - - 1,818,400 915,097 903,303
TOTAL OPERATING EXPENSES 11,493,974 4,522,676 6,971,298 6,975,671 3,246,381 3,729,290 18,215,600 8,922,306 9,293,294 8,049,720 3,614,991 4,434,729
OPERATING REVENUES LESS EXPENSES
BEFORE DEPRECIATION 4,184,526 2,379,403 (1,805,123) 2,128,529 1,504,532 (623,997) 156,900 134,141 (22,759) 2,107,180 1,524,318 (582,862)
NON-OPERATING REVENUES
Operating Transfers-in - - -
Intergovernmental Loan - 39,258 (39,258)
Other Non-Operating Revenues -
NON-OPERATING EXPENSES
Transfer to Capital Subfund 811,400 16,633 794,767 - - - - - -
Other Operating Transfers-out 381,491 34,662 346,829 328,692 5,099 323,593 404,392 79,099 325,293
Debt Service Principal 1,775,400 624,107 1,151,293 563,400 288,262 275,138 438,000 - 438,000
Net Change in Restricted Net Assets - 63,331 63,331 - (17,771) (17,771) - 14,527 14,527
Interfund Loan Repayment
BEGINNING WORKING CAPITAL - January 1, 2019 3,915,375 3,915,375 - 4,292,249 4,292,249 - 3,184,467 3,184,467 - 2,886,614 2,886,614 -
ENDING WORKING CAPITAL - June 30, 2019 5,131,610 5,595,303 463,693 5,528,686 5,521,191 (7,495) 3,341,367 3,318,608 (22,759) 4,151,402 4,317,306 165,904
NET CHANGE IN WORKING CAPITAL (see Note)1,216,235 1,679,928 463,693 1,236,437 1,228,942 (7,495) 156,900 134,141 (22,759) 1,264,788 1,430,692 165,904
CAPITAL FUND:
CAPITAL REVENUES
Interest Revenue 10,000 21,913 11,913 80,000 123,492 43,492 80,000 67,349 (12,651)
Grants 450,592 17,901 (432,691) 181,965 5,792 (176,173)
Contributions - - - - - - -
Other Non-Operating Revenue - 558 558 - - - - - -
Increase In Contributions - System Development 937,700 333,369 (604,331) 654,700 524,873 (129,827) 489,900 329,742 (160,158)
Interfund Revenues - - - - - - - - -
Increase In Contributions - FAA - - - - - - - - -
Proceeds of Debt Activity 7,525,324 - (7,525,324) - - - - - -
Transfers In from Operating Sub-Fund 811,400 16,633 (794,767) - - - - - -
Transfer In from Other Funds - 22,625 22,625 - - - - -
TOTAL CAPITAL REVENUES 9,735,016 412,999 (9,322,017) 734,700 648,365 (86,335) 751,865 402,883 (348,982)
CAPITAL EXPENSES
Other Non-Operating Expense - - - - - - - - -
Increase In Fixed Assets - Salaries 424,300 120,663 303,637 182,900 29,356 153,544 202,900 31,470 171,430
Increase In Fixed Assets - Benefits 169,700 59,652 110,048 73,100 14,189 58,911 81,100 14,528 66,572
Increase In Fixed Assets - Services 300 - 300 1,900 - 1,900 1,900 - 1,900
Increase In Fixed Assets - Site Improvements - 3,736 (3,736) - - - - -
Increase In Fixed Assets - Equipment - - - - - - - - -
Increase In Fixed Assets - Construction 9,896,443 792,224 9,104,219 3,617,608 96,421 3,521,187 3,507,258 95,913 3,411,345
Operating Transfers Out 50,000 50,000 - 50,000 50,000 - 50,000 50,000 -
TOTAL CAPITAL EXPENSES 10,540,743 1,026,275 9,514,468 3,925,508 189,966 3,735,542 3,843,158 191,912 3,651,246
BEGINNING WORKING CAPITAL - January 1, 2019 2,848,451 2,848,451 - 12,240,299 12,240,299 - 13,792,781 13,792,781 -
2,042,724 2,235,175 192,451 9,049,491 12,698,698 3,649,207 10,701,488 14,003,752 3,302,264
NET CHANGE IN WORKING CAPITAL (see Note)(805,727) (613,276) 192,451 (3,190,808) 458,399 3,649,207 (3,091,293) 210,971 3,302,264
Total Change in Working Capital 410,508 1,066,652 656,144 (1,954,371) 1,687,341 3,641,712 156,900 134,141 (22,759) (1,826,505) 1,641,663 3,468,168
(*) Depreciation 3,612,800 1,946,926 2,333,400 1,139,819 - - 2,184,100 1,049,444
OPERATING & CAPITAL FUNDS
WATER
ENTERPRISE FUNDS
SEWER SEWER METRO STORMCash Basis through June 2019
(*) Debt service interest as shown represents actual cash outlay. Debt service principal represents actual expenditures; payments will be made as scheduled in December 2019. Working Capital = Current Assets
minus Current Liabilities
ENDING WORKING CAPITAL - June 30, 2019
39
OPERATING FUND:
OPERATING REVENUES
Charges For Service
Grants
Interest Earnings
Rents, Leases, Concessions, & Other
TOTAL OPERATING REVENUES
OPERATING EXPENSES
Salaries & Wages
Benefits
Supplies
Other Service Charges
Intergovernmental Services (Less Transfers Out)
Waste Management Payments See Note
Sewer Metro Services
Debt Service Interest
Interfund Operating Rentals & Supplies
TOTAL OPERATING EXPENSES
OPERATING REVENUES LESS EXPENSES
BEFORE DEPRECIATION
NON-OPERATING REVENUES
Operating Transfers-in
Intergovernmental Loan
Other Non-Operating Revenues
NON-OPERATING EXPENSES
Transfer to Capital Subfund
Other Operating Transfers-out
Debt Service Principal
Net Change in Restricted Net Assets
Interfund Loan Repayment
BEGINNING WORKING CAPITAL - January 1, 2019
ENDING WORKING CAPITAL - June 30, 2019
NET CHANGE IN WORKING CAPITAL (see Note)
CAPITAL FUND:
CAPITAL REVENUES
Interest Revenue
Grants
Contributions
Other Non-Operating Revenue
Increase In Contributions - System Development
Interfund Revenues
Increase In Contributions - FAA
Proceeds of Debt Activity
Transfers In from Operating Sub-Fund
Transfer In from Other Funds
TOTAL CAPITAL REVENUES
CAPITAL EXPENSES
Other Non-Operating Expense
Increase In Fixed Assets - Salaries
Increase In Fixed Assets - Benefits
Increase In Fixed Assets - Services
Increase In Fixed Assets - Site Improvements
Increase In Fixed Assets - Equipment
Increase In Fixed Assets - Construction
Operating Transfers Out
TOTAL CAPITAL EXPENSES
BEGINNING WORKING CAPITAL - January 1, 2019
NET CHANGE IN WORKING CAPITAL (see Note)
Total Change in Working Capital
(*) Depreciation
OPERATING & CAPITAL FUNDS
Cash Basis through June 2019
Working Capital = Current Assets
minus Current Liabilities
ENDING WORKING CAPITAL - June 30, 2019
Budget
YTD
Actual Variance Budget
YTD
Actual Variance Budget
YTD
Actual Variance Budget
YTD
Actual Variance
464 464 465 465 466 466 -
16,071,700 7,907,109 (8,164,591) 1,205,700 674,328 (531,372) 1,086,000 735,185 (350,815) - - -
88,600 4,994 (83,606) - 1,000 1,000 - -
88,800 57,201 (31,599) 6,900 12,409 5,509 1,000 9,694 8,694 21,000 12,707 (8,293)
- 3,446 3,446 6,000 4,993 (1,007) - 214 214
16,249,100 7,972,750 (8,276,350) 1,218,600 692,731 (525,869) 1,087,000 745,094 (341,906) 21,000 12,707 (8,293)
- - - 207,803 104,721 103,082 464,932 230,719 234,213 - - -
- - - 149,990 62,437 87,553 269,930 129,417 140,513 175,000 25,765 149,235
53,400 1,789 51,611 212,700 171,948 40,752 221,700 131,779 89,921 - - -
2,123,775 810,781 1,312,994 247,400 92,855 154,545 151,500 60,047 91,453 5,600 608,752 (603,152)
- - - - - - - - - - - -
13,485,300 6,558,190 6,927,110
- - - 3,700 2,089 1,611 - - - - - -
612,000 317,794 294,206 38,600 19,300 19,300 155,900 77,950 77,950 - - -
16,274,475 7,688,554 8,585,921 860,193 453,350 406,843 1,263,962 629,913 634,049 180,600 634,517 (453,917)
(25,375) 284,196 309,571 358,407 239,381 (119,026) (176,962) 115,181 292,143 (159,600) (621,810) (462,210)
100,000 - (100,000) - - -
350,000 51,649 100,000 -
21,831 3,505 18,326 10,000 4,236 5,764 - - -
186,500 - 186,500 - - -
- 12,274 12,274 - - -
42,100 20,743 21,357
5,556,175 5,556,175 - 474,633 474,633 - 441,060 441,060 - 1,928,070 1,928,070 -
5,508,969 5,836,866 327,897 244,440 625,111 380,671 264,098 556,241 292,143 1,768,470 1,306,260 (462,210)
(47,206) 280,691 327,897 (230,193) 150,478 380,671 (176,962) 115,181 292,143 (159,600) (621,810) (462,210)
2,000 1,244 (756) - 3,058 3,058
104,316 6,120 (98,196) - - -
- - - - - -
- - - - - -
- - - - - -
2,367,730 60,269 (2,307,461) - - -
- - - - - -
350,000 51,649 (298,351) 100,000 - (100,000)
- - - 55,442 - (55,442)
2,824,046 119,283 (2,704,763) 155,442 3,058 (152,384)
- - - - - -
4,300 57 4,243 - - -
1,700 41 1,659 - - -
100 - 100 100 - 100
- - - -
- - - -
2,928,308 257,032 2,671,276 380,442 - 380,442
73,200 69,034 4,166 - - -
3,007,608 326,164 2,681,444 380,542 - 380,542
246,967 246,967 - 261,037 261,037 -
63,405 40,086 (23,319) 35,937 264,095 228,158
(183,562) (206,881) (23,319) (225,100) 3,058 228,158
(47,206) 280,691 (413,755) (56,403) 357,352 (402,062) 118,239 520,301 (159,600) (621,810) (462,210)
19,900 9,410 490,300 212,529 45,000 16,551 - -
Note: Includes June's Waste Management
payment ($1,145,334), which will be made in July.
(*) Debt service interest as shown represents actual cash outlay. Debt service principal represents actual expenditures;
payments will be made as scheduled in December 2019.
ENTERPRISE FUNDS
SOLID WASTE AIRPORT CEMETERY
INTERNAL SERVICE FUNDS
INSURANCE
see Note
40
OPERATING FUND:
OPERATING REVENUES
Charges For Service
Grants
Interest Earnings
Rents, Leases, Concessions, & Other
TOTAL OPERATING REVENUES
OPERATING EXPENSES
Salaries & Wages
Benefits
Supplies
Other Service Charges
Intergovernmental Services (Less Transfers Out)
Waste Management Payments See Note
Sewer Metro Services
Debt Service Interest
Interfund Operating Rentals & Supplies
TOTAL OPERATING EXPENSES
OPERATING REVENUES LESS EXPENSES
BEFORE DEPRECIATION
NON-OPERATING REVENUES
Operating Transfers-in
Intergovernmental Loan
Other Non-Operating Revenues
NON-OPERATING EXPENSES
Transfer to Capital Subfund
Other Operating Transfers-out
Debt Service Principal
Net Change in Restricted Net Assets
Interfund Loan Repayment
BEGINNING WORKING CAPITAL - January 1, 2019
ENDING WORKING CAPITAL - June 30, 2019
NET CHANGE IN WORKING CAPITAL (see Note)
CAPITAL FUND:
CAPITAL REVENUES
Interest Revenue
Grants
Contributions
Other Non-Operating Revenue
Increase In Contributions - System Development
Interfund Revenues
Increase In Contributions - FAA
Proceeds of Debt Activity
Transfers In from Operating Sub-Fund
Transfer In from Other Funds
TOTAL CAPITAL REVENUES
CAPITAL EXPENSES
Other Non-Operating Expense
Increase In Fixed Assets - Salaries
Increase In Fixed Assets - Benefits
Increase In Fixed Assets - Services
Increase In Fixed Assets - Site Improvements
Increase In Fixed Assets - Equipment
Increase In Fixed Assets - Construction
Operating Transfers Out
TOTAL CAPITAL EXPENSES
BEGINNING WORKING CAPITAL - January 1, 2019
NET CHANGE IN WORKING CAPITAL (see Note)
Total Change in Working Capital
(*) Depreciation
OPERATING & CAPITAL FUNDS
Cash Basis through June 2019
Working Capital = Current Assets
minus Current Liabilities
ENDING WORKING CAPITAL - June 30, 2019
Budget
YTD
Actual Variance Budget
YTD
Actual Variance Budget
YTD
Actual Variance Budget
YTD
Actual Variance
- - 568 568 560 560
1,075,200 533,491 (541,709) 3,436,500 1,742,944 (1,693,556) 6,276,600 3,145,182 (3,131,418) 2,007,606 1,003,803 (1,003,803)
- - - - - -
46,000 27,704 (18,296) 24,600 23,630 (970) 8,000 32,958 24,958 - 38,139 38,139
50,000 4,777 (45,223) - - - - - - - 32,784 32,784
1,171,200 565,972 (605,228) 3,461,100 1,766,574 (1,694,526) 6,284,600 3,178,140 (3,106,460) 2,007,606 1,074,726 (932,880)
- - - 728,510 336,925 391,585 2,070,555 986,396 1,084,159 604,034 303,651 300,383
250,000 52,505 197,495 424,233 196,859 227,374 1,072,035 481,777 590,258 324,807 151,271 173,536
- - - 144,720 54,423 90,297 469,150 106,319 362,831 1,092,000 403,645 688,355
448,315 149,586 298,729 1,995,950 674,791 1,321,159 2,861,600 1,551,394 1,310,206 493,050 211,291 281,759
- - - - - - - - - - - -
- - - - - - - - - 2,700 895 1,805
119,800 59,900 59,900 159,700 79,850 79,850 183,000 91,500 91,500 291,600 145,800 145,800
818,115 261,991 556,124 3,453,113 1,342,847 2,110,266 6,656,340 3,217,386 3,438,954 2,808,191 1,216,552 1,591,639
353,085 303,981 (49,104) 7,987 423,727 415,740 (371,740) (39,246) 332,494 (800,585) (141,826) 658,759
44,500 - (44,500) 276,210 24,062 (252,148) - - -
733,950 321,688 412,262 30,000 - 30,000 - - -
- - -
- - - - - - - (12,774) (12,774)
2,128,988 2,128,988 - 1,548,874 1,548,874 - 2,698,004 2,698,004 - 3,091,626 3,091,626 -
2,482,073 2,432,969 (49,104) 867,411 1,650,913 783,502 2,572,474 2,682,820 110,346 2,291,041 2,962,574 671,533
353,085 303,981 (49,104) (681,463) 102,039 783,502 (125,530) (15,184) 110,346 (800,585) (129,052) 671,533
- 18,331 18,331 - 50,118 50,118
- 60,000 60,000
- - - - - -
- - - - - -
- - - - - -
- - - 1,771,194 885,597 (885,597)
- - - - - -
- - - - - -
- - - - - -
22,500 - (22,500) 1,046,000 139,434 (906,566)
22,500 18,331 (4,169) 2,817,194 1,135,149 (1,682,045)
- - - - - -
- 4,357 (4,357) - - -
- 2,277 (2,277) - - -
300 - 300 500 - 500
- -
871,500 34,998 836,502 2,333,450 542,752 1,790,698
20,000 10,272 9,728 1,140,000 - 1,140,000
- - - - - -
891,800 51,904 839,896 3,473,950 542,752 2,931,198
1,169,997 1,169,997 - 3,709,510 3,709,510 -
300,697 1,136,424 835,727 3,052,754 4,301,907 1,249,153
(869,300) (33,573) 835,727 (656,756) 592,397 1,249,153
353,085 303,981 (49,104) (681,463) 102,039 783,502 (994,830) (48,757) 946,073 (1,457,341) 463,345 1,920,686
- - - - 500,000 174,702 1,250,000 641,713
INTERNAL SERVICE FUNDS
WORKER'S COMPENSATION FACILITIES INNOVATION & TECHNOLOGY EQUIPMENT RENTAL
41