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HomeMy WebLinkAbout12-13-2021 City Council Study Session AgendaCity Council Study Session Finance, Technology and Economic Dev elopment Special Focus Area December 13, 2021 - 5:30 P M City Hall Council Chambers and Virtual A GE NDA Watch the meeting L I V E ! Watch the meeting video Meeting videos are not available until 72 hours after the meeting has concluded. I .C A L L TO O R D E R I I .P UB L I C PA RT I C I PAT I O N A .P ublic P articipation The A uburn City Council Meeting scheduled for Monday, December 13, 2021 at 5:30 p.m. will be held in person and virtually. Virtual Participation L ink: To attend the meeting virtually please click one of the below links, enter the meeting I D into the Zoom app, or call into the meeting at the phone number listed below. T he link to the Virtual Meeting is: Zoom: https://us06web.zoom.us/j/87835769996 The public can also view the meeting on YouTube: https://www.youtube.com/user/watchauburn/live/?nomobile=1 To join the meeting by phone, please use the below call-in information: 253 215 8782 877 853 5257 (Toll Free) Webinar I D: 878 3576 9996 B .Roll Call I I I .A NNO UNC E ME NT S , R E P O RT S , A ND P R E S E NTAT I O NS I V.A G E ND A I T E MS F O R C O UNC I L D I S C US S I O N A .Ordinance No. 6839 (Gaub)(5 Minutes) A n Ordinance vacating right-of-way of a portion of West Main Street, East of L und Road S W Page 1 of 108 B .Neighborhood Traffic Calming P rogram Overview (Gaub)(20 Minutes) C.Resolution No. 5637 (Comeau)(30 Minutes) A Resolution authorizing the Mayor to execute an easement agreement in favor of MS R E Apartment, L L C for access, parking and fire service over, across, through and under City owned property – parcel number 733140-0135 V.F I NA NC E, T E C HNO L O G Y A ND E C O NO MI C D E V E L O P ME NT D I S C US S I O N I T E MS A .Ordinance No. 6845 (T homas)(20 Minutes) A n Ordinance amending S ections 3.53.100 and 3.53.110 regarding City B usiness and Occupation (B &O) tax exemptions and deductions allowed to nonprofit health care organizations in the City B .3rd Quarter 2021 F inancial Report Update (Thomas)(15 Minutes) V I .O T HE R D I S C US S I O N I T E MS V I I .NE W B US I NE S S V I I I .A D J O UR NME NT Agendas and minutes are available to the public at the City Clerk's Office, on the City website (http://www.auburnwa.gov), and via e-mail. Complete agenda packets are available for review at the City Clerk's Office. Page 2 of 108 AGENDA BILL APPROVAL FORM Agenda Subject: Ordinance No. 6839 (Gaub)(5 Minutes) Date: November 17, 2021 Department: Public Works Attachments: Draft Ordinance No. 6839 Exhibit A Staff Report Vicinity Map Budget Impact: Current Budget: $0 Proposed Revision: $0 Revised Budget: $0 Administrativ e Recommendation: For discussion only. Background for Motion: Background Summary: Ralph T. Pozzi has applied to the City for vacation of the right-of-way of a portion of West Main Street, east of Lund Road SW. The applicant owns the adjacent parcel #1321049008 to the south and is proposing to incorporate the right-of-way into development of the adjacent property to add additional parking for the associated business on the property. A portion of the proposed vacation area became ROW in 1888. The majority of the proposed vacation area was acquired by the State as ROW for construction of SR-167 through Warranty Deed on December 11, 1969. The entire proposed vacation area was subsequently conveyed to the City of Auburn from the State through Governors Deed on February 6, 1974. The application has been reviewed by City staff and utility purveyors who have an interest in this right-of-way. Through this review City staff has determined that the right-of-way is no longer necessary to meet the needs of the City and could be vacated with conditions outlined in draft Ordinance No. 6839. A public hearing for Vacation No. VAC21-0002 is set for December 20, 2021. Rev iewed by Council Committees: Councilmember:Stearns Staff:Gaub Meeting Date:December 13, 2021 Item Number: Page 3 of 108 - - - - - - - - - - - - - - - - - Draft Ordinance No. 6839 ROW Vacation VAC21-0002 November 3, 2021 Page 1 of 7 ORDINANCE NO. 6839 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF AUBURN WASHINGTON, VACATING RIGHT-OF-WAY OF A PORTION OF WEST MAIN STREET, EAST OF LUND ROAD SW, WITHIN THE CITY OF AUBURN, WASHINGTON. WHEREAS, the City of Auburn, Washington (“City”), has received a petition signed by at least two-thirds (2/3) of the owners of property abutting right-of-way located within a portion of West Main Street, east of Lund Road SW, within the City of Auburn, requesting vacation of the right-of-way; and, WHEREAS, as required by Chapter 12.48 of the Auburn City Code, a public hearing was held in connection with the possible vacation, with notice having been provided pursuant to statute; and, WHEREAS, the City Council has considered all matters presented at the public hearing on the proposed vacation, held on the 20th day of December, 2021, at the Auburn City Council Chambers in Auburn, Washington. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF AUBURN, WASHINGTON DO ORDAIN as a non-codified ordinance as follows: Section 1. Vacation. That the right of way located at a portion of West Main Street, east of Lund Road SW, located within the City of Auburn, Washington, legally described as follows: COMMENCING AT THE NORTHEAST CORNER OF LOT 1 OF CITY OF AUBURN SHORT PLAT NUMBER SP-11-85, RECORDED JANUARY 08, 1986 UNDER RECORDING NUMBER 8601080790, IN KING COUNTY, WASHINGTON; Page 4 of 108 - - - - - - - - - - - - - - - - - Draft Ordinance No. 6839 ROW Vacation VAC21-0002 November 3, 2021 Page 2 of 7 THENCE NORTH 86°14’47” WEST ALONG THE NORTH LINE OF SAID LOT 1 A DISTANCE OF 65.87 FEET; THENCE SOUTH 03°45’13” WEST 3.00 FEET TO THE BEGINNING; THENCE CONTINUING SOUTH 03°45’13” WEST 27.00 FEET TO THE BEGINNING OF A NON-TANGENT CURVE TO THE RIGHT THE RADUIS POINT OF WHICH BEARS NORTH 03°45’13” EAST DISTANT 2260.00 FEET; THENCE ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 8°35’30” AN ARC LENGTH OF 338.89 FEET; THENCE NORTH 77°39’17” WEST 31.05 FEET; THENCE NORTH 86°14’47” WEST 30.07 FEET TO THE BEGINNING OF A NON-TANGENT CURVE TO THE RIGHT THE RADIUS POINT OF WHICH BEARS SOUTH 80°54’28” EAST DISTANT 30.00 FEET; THENCE ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 94°02’01” AN ARC LENGTH OF 49.24 FEET TO THE BEGINNING OF A CURVE TO THE LEFT HABING A RADUIS OF 2233.00 FEET; THENCE ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 9°22’20” AN ARC LENGTH OF 365.27 FEET TO THE POINT OF BEGINNING. CONTAINING AN AREA OF 10,620 SQUARE FEET, MORE OR LESS. and as shown on the survey, a copy of which is attached, marked Exhibit "A" is vacated and the property lying in the right-of-way described, shall inure and belong to those persons entitled to receive the property in accordance with RCW 35.79.040, conditioned upon the following: A. Reservation in favor of the City of a perpetual Nonexclusive Easement under, over, through and across the vacated right-of-way as described above for the purpose of laying, maintaining, and installing future and existing water, sanitary sewer and storm water facilities and including a reservation in favor of the City of the right to Page 5 of 108 - - - - - - - - - - - - - - - - - Draft Ordinance No. 6839 ROW Vacation VAC21-0002 November 3, 2021 Page 3 of 7 grant easements for utilities over, under and on all portions of the vacated right-of-way as described above. The City shall have the absolute right, at times as may be necessary for immediate entry upon said Easement Area for the purpose of maintenance, inspection, construction, repair or reconstruction of the above improvements without incurring any legal obligation or liability. The City shall have the absolute right to place any type of driving surface within said Easement Area deemed necessary by the City. The owners of the adjacent properties agree and shall not in any way block, restrict or impede access and egress to or from said Easement Area, and /or in any way block, restrict or impede full use of the real property within the Easement Area by the City for the above described purposes. No building, wall, rockery, fence, trees, or structure of any kind shall be erected or planted, nor shall any fill material be placed within the boundaries of said Easement Area, without the express written consent of the City. Except as required or approved by the City, no excavation shall be made within three feet of said facilities. The surface level of the ground within the Easement Area shall be maintained at the elevation as currently existing except areas that were previously graded and must be re-graded to satisfy conditions of this right-of-way vacation as set forth in paragraphs F and G. This easement shall be a covenant running with the adjacent property parcels and burden said real estate, and shall be binding on the successors, heirs and assigns of all Page 6 of 108 - - - - - - - - - - - - - - - - - Draft Ordinance No. 6839 ROW Vacation VAC21-0002 November 3, 2021 Page 4 of 7 parties. B. Under the terms of the reservation set out in Paragraph A above and in accordance with RCW 35.79.030, the City grants a private utility easement to Puget Sound Energy over, under, and upon the vacated right-of-way as described above for the construction, operation, maintenance, repair, replacement, improvement and removal of electric and gas distribution facilities. The owners of the adjacent property shall not erect any structures on the easement and shall not place trees or other obstructions on the easement that would interfere with the exercise of Grantee’s rights. This easement shall be a covenant running with the adjacent property parcels and burden said real estate, and shall be binding on the successors, heirs and assigns of all parties. C. In accordance with RCW 35.79.030, the City grants a private utility easement to CenturyLink over, under and upon the vacated right-of-way as described above for the construction, operation, maintenance, repair, replacement, improvement and removal of wireline telecommunications facilities. The owners of the adjacent properties shall not erect any structures on the easement and shall not place trees or other obstructions on the easement that would interfere with the exercise of Grantee’s rights. This easement shall be a covenant running with the adjacent property parcels and burden said real estate, and shall be binding on the successors, heirs and assigns of all parties. Page 7 of 108 - - - - - - - - - - - - - - - - - Draft Ordinance No. 6839 ROW Vacation VAC21-0002 November 3, 2021 Page 5 of 7 D. In accordance with RCW 35.79.030, the City grants a private utility easement to Comcast over, under and upon the vacated right-of-way as described above for the construction, operation, maintenance, repair, replacement, improvement and removal of cable facilities. The owners of the adjacent properties shall not erect any structures on the easement and shall not place trees or other obstructions on the easement that would interfere with the exercise of Grantee’s rights. This easement shall be a covenant running with the adjacent property parcels and burden said real estate, and shall be binding on the successors, heirs and assigns of all parties. E. It is provided, however that such reserved or granted utility and access easements as set out in Paragraphs A, B, C and D above may be modified to accommodate a removal, relocation and sitting of the affected utility lines if the Utility and the property owners on whose property the utility lines are located agree to the removal relocations and sitting being paid by said property owners and with the removal relocation and sitting being done in conformity with applicable standards. F. The applicant shall move the existing fence to the current property line ( as it exists prior to vacation) and obtain a Grading Permit to remove gravel and construct proper site improvements for storm drainage to storm inlet structures, parking, lighting and landscaping per City requirements and Engineering Design and Construction Standards. G. The applicant shall obtain required permits and replace the domed storm Page 8 of 108 - - - - - - - - - - - - - - - - - Draft Ordinance No. 6839 ROW Vacation VAC21-0002 November 3, 2021 Page 6 of 7 inlet structures with a standard grate and shall install concrete aprons around all storm inlet structures per the City’s Standard Details. H. In accordance with RCW 35.79.0360 and ACC 12.48.085, compensation to the City of Auburn, shall be made by the owner or owners of property adjacent thereto in the total amount of Forty-five Thousand ($45,000.00) Dollars for the full appraised value of the right-of-way, which has been right-of-way for more than twenty-five (25) years and for which public funds were expended. I. This vacation shall be effective upon completion of the provisions in paragraph F, G, and H, above. The above described provisions must be completed by December 20, 2022 or the vacation and this Ordinance will be null and void. Section 2. Constitutionality or Invalidity. If any portion of this Ordinance or its application to any person or circumstances is held invalid, the remainder of the Ordinance or the application of the provisions to other persons or circumstances shall not be affected. Section 3. Implementation. The Mayor is authorized to implement such administrative procedures as may be necessary to carry out the directives of this location. Section 4. Effective Date. This Ordinance shall take effect and be in force five (5) days from and after passage, approval, and publication as provided by law. Section 5. Recordation. The City Clerk is directed to record this Ordinance with the office of the King County Auditor only upon completion of those provisions set forth in Section 1, Paragraphs F, G, and H, above, at which time the vacation pursuant to this Ordinance shall be effective under Auburn City Code 12.48.080. Page 9 of 108 - - - - - - - - - - - - - - - - - Draft Ordinance No. 6839 ROW Vacation VAC21-0002 November 3, 2021 Page 7 of 7 INTRODUCED: _________________ PASSED: ________________________ APPROVED: _____________________ ________________________________ NANCY BACKUS, MAYOR ATTEST: APPROVED AS TO FORM: __________________________ _________________________________ Shawn Campbell, MMC, City Clerk Kendra Comeau, City Attorney PUBLISHED: _______________ Page 10 of 108 Page 11 of 108 Page 12 of 108 1 of 4 October 20, 2021 VAC21-0002 Staff Report RIGHT-OF-WAY VACATION STAFF REPORT Right-of-Way (ROW) Vacation Number VAC21-0002 Applicant: Ralph T. Pozzi Property Location: Right-of-Way located on the south side of West Main Street, east of Lund Road SW. Description of right-of-way: This ROW proposed for vacation consists of a portion of the south side of West Main Street, east of Lund Road SW. The proposed ROW is adjacent to Parcel No. 1321049008 on the south and east sides and bordered by City right-of-way to the north and west. The total proposed area of ROW for vacation is approximately 10,620± square feet. A portion of the proposed ROW vacation area originally became ROW in 1888 and was known as Beede Rd No. 222. The majority of the ROW was acquired by the State for the construction of SR-167 through Warranty Deed under Recording Number 6626194, dated December 11, 1969, Records of the State of Washington. The proposed ROW Vacation Area was subsequently conveyed to the City of Auburn from the State through Governor’s Deed under Recording No. 7402270280, dated February 6, 1974, Records of the State of Washington. See Exhibit “A” for legal description and survey. Proposal: The Applicant is proposing that the Right-of-Way be vacated so that they can incorporate the area into development of the property to the south on Parcel No. 1321049008. The Applicant would like to add additional parking area for the trucking company located on the parcel. The proposed vacated right-of-way area would be used for city storm drainage systems and street landscaping requirements for the additional parking area. Applicable Policies & Regulations:  RCW’s applicable to this situation - meets requirements of RCW 35.79.  MUTCD standards - not affected by this proposal.  City Code or Ordinances - meets requirements of ACC 12.48. Page 13 of 108 2 of 4 November 3, 2021 VAC21-0002 Staff Report  Comprehensive Plan Policy - not affected.  City Zoning Code - not affected. Public Benefit:  Vacated Right-of-Way areas typically have a financial benefit to the general public because the vacated areas are subject to property taxes  The street vacation decreases the Right-of-Way maintenance obligation of the City. Discussion: The vacation application was circulated to Puget Sound Energy (PSE), Comcast, CenturyLink, and City staff. 1. Puget Sound Energy (PSE) – PSE has underground gas and electrical facilities and will require an easement be retained across the proposed vacation area. 2. Comcast – Comments from Comcast were received requesting an easement be reserved for facilities currently located in the right-of-way. 3. CenturyLink – Comments from CenturyLink were received requesting an easement be reserved for facilities currently located in the right-of-way. 4. Engineering – All City facilities located in the proposed vacation area will require easements to ensure that they are accessible to the City, including moving the existing fence currently located in the ROW to the current property line. 5. Transportation – Ten (10) feet of ROW from back of curb is required to meet City Engineering Design Standards and ensure that street signs, stop signs, lighting conduits, power cabinets and other facilities are not within the vacated area. 6. Planning – Applicant will need to apply for a Grading Permit and will need to remove gravel and do proper site improvements, such as parking, lighting, and landscaping per City requirements and Engineering Design and Construction Standards. 7. Water – An easement will need to be retained across the proposed vacation area for existing water facilities. 8. Sewer – An easement will need to be retained across the proposed vacation area for existing sewer facilities. 9. Storm – An easement will need to be retained across the proposed vacation area for existing storm facilities. Applicant will be required to obtain appropriate Grading Permit for work performed in the proposed vacation area so that the area drains properly to the storm inlet structures during the conversion of gravel to grass. A concrete apron is required to be installed around catch basin structure 807-P281, 807-P7F and 807-P7G per City of Auburn Standard Detail T- 05.2 and the dome storm inlet structure on catch basin structure 807-P7G is required to be replaced with a standard grate. As a condition of required permits, Applicant shall clean the storm system within the site when grading and restoration work is completed. Page 14 of 108 3 of 4 November 3, 2021 VAC21-0002 Staff Report 10. Fire – No comments. 11. Solid Waste – No comments. 12. Police – No comments. 13. Streets – No comments. 14. Construction –No comments. 15. Innovation and Technology – No comments Assessed Value: ACC 12.48 states: “The city council may require as a condition of the ordinance that the city be compensated for the vacated right-of-way in an amount which does not exceed one-half the value of the right-of-way so vacated, except in the event the subject property or portions thereof were acquired at public expense or have been part of a dedicated public right-of-way for 25 years or more, compensation may be required in an amount equal to the full value of the right-of-way being vacated. The city engineer shall estimate the value of the right-of-way to be vacated based on the assessed values of comparable properties in the vicinity. If the value of the right-of-way is determined by the city engineer to be greater than $2,000, the applicant will be required to provide the city with an appraisal by an MAI appraiser approved by the city engineer, at the expense of the applicant. The city reserves the right to have a second appraisal performed at the city’s expense.” RCW 35.79.030 states the vacation “shall not become effective until the owners of property abutting upon the street or alley, or part thereof so vacated, shall compensate such city or town in an amount which does not exceed one -half the appraised value of the area so vacated. If the street or alley has been part of a dedicated public right-of- way for twenty-five years or more, or if the subject property or portions thereof were acquired at public expense, the city or town may require the owners of the property abutting the street or alley to compensate the city or town in an amount that does not exceed the full appraised value of the area vacated.” An appraisal by an MAI appraiser of the subject right-of-way was required to be submitted by the applicant. The appraisal was reviewed and found to be acceptable . The appraisal values the right-of-way using an “Across-the-Fence” methodology at $4.25 per square foot or $45,000. The right-of-way has been right-of-way for more than 25 years and was provided to the City by Governor’s Deed under Recording No. 7402270280, dated February 6, 1974, Records of the State of Washington. Recommendation: Staff recommends that the street vacation be granted subject to the following conditions: 1. An easement shall be reserved for Puget Sound Energy electric facilities. 2. An easement shall be reserved for CenturyLink telecommunications facilities. Page 15 of 108 4 of 4 November 3, 2021 VAC21-0002 Staff Report 3. An easement shall be reserved for Comcast cable facilities 4. An easement shall be reserved for City Water, Sewer and Stormwater facilities 5. Applicant shall move the existing fence that is currently located at the back of the sidewalk on West Main Street to the current property line as it exists prior to the proposed right-of-way vacation. 6. Applicant shall obtain appropriate permits and replace the domed storm inlet structures with a standard grate and shall install concrete aprons around all storm inlet structures per the City’s Standard Details. 7. Applicant shall obtain a Grading Permit to remove gravel and construct proper site improvements, such as proper storm drainage to storm inlet structures, parking, lighting, and landscaping per City requirements and Engineering Design and Construction Standards. 8. Staff recommends that compensation for the full appraised value of the right-of- way in the amount of $45,000 be required as it has been ROW for more than 25 years, a portion of it was initially acquired by the State for construction of SR- 167, and the City has incurred cost for construction and maintenance of the facilities in the vacation area. 9. Completion of Condition Nos. 5 through 8 above shall be accomplished by December 20, 2022 or the vacation shall be null and void. Page 16 of 108 1:1,000 Vicinity Map - VAC21-0002 166.783.33166.7 0 Feet NAD_1983_StatePlane_Washington_North_FIPS_4601_Feet Information shown is for general reference purposes only and does not necessarily represent exact geographic or cartographic data as mapped. The City of Auburn makes no warranty as to its accuracy. Map Created by City of Auburn eGIS Imagery Date: May 2015 10/7/2021Printed Date: 1 in =83.33 ft West Main StreetWestern Ave NWLund Road SWParcel No. 1321049008 1016 West Main St Auburn, WA 98001 Proposed V a c a t i o n A r e a - 10,620+/- S q u a r e F e e t Page 17 of 108 AGENDA BILL APPROVAL FORM Agenda Subject: Neighborhood Traffic Calming Program Overview (Gaub)(20 Minutes) Date: December 7, 2021 Department: Public Works Attachments: Neighborhood Traffic Calming Program Description Pres entation Budget Impact: Current Budget: $0 Proposed Revision: $0 Revised Budget: $0 Administrativ e Recommendation: For discussion only. Background for Motion: Background Summary: In 2005, City Council adopted a Neighborhood Traffic Calming Program via Resolution 3946, which was updated in 2006 via Resolution 4094. The program is designed to evaluate and address speeding complaints in residential neighborhoods. Examples of improvements constructed as a result of this program include, but are not limited to, speed cushions, traffic circles, and radar feedback signs. Staff has developed a proposed update to the Neighborhood Traffic Calming Program with a focus on equity, changing from a location specific to an areawide approach, and including more community outreach. Rev iewed by Council Committees: Councilmember:Stearns Staff:Gaub Meeting Date:December 13, 2021 Item Number: Page 18 of 108 December 2021 Neighborhood Traffic Calming Program Overview & Purpose: The City of Auburn is dedicated to improving the quality and livability of Auburn’s residential neighborhoods. City Council adopted a Neighborhood Traffic Calming Program to assist residents and the City in developing solutions to speeding and other traffic safety concerns on residential streets. This program was implemented from 2007 through March 2020, when it was put on hold because of budget reductions due to the COVID-19 pandemic. This updated program will be implemented starting in January 2022. This program is intended for residential neighborhoods, with implementation on streets classified as “local residential” and “residential collector”. It is not intended for commercial/industrial areas or streets classified as “arterials”, “non-residential collectors”, “rural collectors”, or “highways”. It is also not intended for alleys. “Traffic Calming reduces automobile speeds or volumes as a means of improving the quality of life in residential areas, increasing walking safety and making bicycling more comfortable.” (ITE definition, Traffic Engineering Handbook, 2016) The objectives of the neighborhood traffic calming program are to: • Reduce speeds in neighborhoods so that most cars regularly drive below or at the posted speed limit. • Reduce speeds at locations such as intersections and roadway curves, to promote safety for vehicles, pedestrians, and cyclists. • Discourage cut-through vehicle traffic between arterials, to encourage drivers to use arterials, which are designed for higher traffic volumes, instead of using local streets, which are intended for local access. • Improve safety for all road users, especially pedestrians and cyclists. • Educate residents through traffic safety awareness and outreach, which may include events to demonstrate perceived vs. actual speeds. • Meet Auburn’s equity goals with a proactive approach to ensure all neighborhoods are evaluated, regardless of whether complaints were received or not. • Encourage residents to participate in the process through community outreach. DRAFT Page 19 of 108 Page 2 of 9 Tools to meet the program’s objectives: • Education: o Informational letters, including options for alternative language(s) o Neighborhood outreach and meeting(s) to discuss concerns and potential traffic calming approaches, when applicable o Temporary awareness signs as a localized safety campaign o Placement of the Police Speed Trailer, which indicates the vehicles speed and the posted speed limit o Temporary installation of Radar Speed Feedback Signs, which indicate the vehicles speed and posted speed limit (for classified streets only) o Social media outreach o Magazine articles • Enforcement: o Police Emphasis Patrols - Speed study results are shared with the Police Traffic Unit to assist in guiding their enforcement activities • Engineering: o Evaluation of best traffic calming treatment options for the neighborhood, to be implemented with available funding o Project design and cost estimate, including neighborhood feedback o Implementation as an annual capital project • Evaluation: o Evaluation of results (community survey and/or data collection) post implementation. Proactive and Areawide Approach This program is intended to proactively identify and address traffic calming issues throughout complete neighborhood areas rather than waiting for issues to be reported at a spot location within a neighborhood. The intent is not to address each specific location where a complaint is received, but instead evaluate defined geographic neighborhood areas, one neighborhood area at a time, to ensure that traffic calming treatment measure(s) will not negatively affect neighboring streets. The intent is to ensure that roadways are used as intended, with arterials carrying most of the traffic, and local residential streets used primarily for local residential access, and residential collector streets used to connect local residential streets to arterials. Individual complaints received will continue to be documented and will help inform the City of potential speeding issues. However, to implement a proactive approach, complaints will not be the only factor considered when determining which neighborhood area to further study and possibly implement traffic calming measures. This may mean longer delays in some complaints being evaluated and addressed. Prioritization of neighborhoods to address will be based on many factors and how much can be accomplished annually, based on staff availability and budget allocations, but the long-term result is expected to be a more successful program. Page 20 of 108 Page 3 of 9 While a reactive (complaints driven) spot treatment approach may have limited success, a proactive, areawide approach tends to have more success in meeting the goals of a traffic calming program long term, based on nationwide studies and findings. Localized Neighborhood Speeding Issues Complaints are sometimes received regarding speeding in neighborhoods where nearly all of the traffic on the streets is residents or guests of the neighborhood itself. Examples of this scenario would be traffic on short cul-de-sac or dead-end roadways and in smaller neighborhoods with only a single connection from the local roadways to a collector or arterial roadway. Sometimes complaints are also received that specific residents within a neighborhood are speeding. These situations do not fall within the program goals to be both proactive and area wide. Program funds for engineering and construction of physical improvements will not be prioritized for these locations. The extents to which the program evaluates and takes action to address specific complaints for localized speeding issues will be based on the availability of program resources that are not already allocated towards non-localized traffic calming efforts. When resources are available, the program will address these situations on a case-by-case basis with the following: 1. Neighborhood education and outreach about traffic safety, including demonstration of perceived speed versus actual speed 2. Placement of temporary educational items such as temporary signs or speed trailer 3. Police outreach – officers can meet with a specific driver and talk about the importance of respecting travel speeds If the localized neighborhood concerns persist after these efforts, the neighborhood could pursue physical traffic calming measures at its own cost, subject to City approval. In this case, the neighborhood would be responsible for all costs associated with the improvements and would need to hire a licensed engineer to design the improvements and prepare the project plans and a contractor licensed, insured, and bonded per City standards to construct them. The neighborhood or its contractor would be required to secure a construction permit from the City and provide affidavits from at least 51% of the neighborhood property owners that the improvements were desired and acknowledging that the City may remove and not re-construct the improvements at any time without compensation or reimbursement to the neighborhood. This scenario may be applicable if a neighborhood installs traffic calming measures and the City subsequently removes them with a street reconstruction project. The traffic calming measures would be subject to City standards and to City review and approval or denial through the construction permit process. Funding 2022-24 Annual Budget (REET) for this program: $50,000 2022-24 ARPA funds: $200,000 per year ARPA funds can only be used for projects or improvements within Qualified Census Tracts (QCT) as defined by HUD. Page 21 of 108 Page 4 of 9 Non-Localized Traffic Calming Process Area selection: From 2022 to 2024, two (2) types of areas will be considered: 1. Qualified Census Tracts (QCT) using ARPA funds ($200k/year) 2. Non- QCT ($50k/year) Staff will define study area boundaries based on street networks, school boundaries, and other characteristics that define a neighborhood area from a street network perspective. Equity Lens: Staff will review data such as Census demographic data, American Community Survey (ACS) demographic data, and school enrollment data to create a profile for the area with income, demographics, primary languages, and other information that can be helpful with community outreach and prioritization. Staff will also review existing data such as speed study results, complaints, and crashes to identify which areas to study first, as this data will indicate where we have documented issues and help us prioritize these locations. Post Implementation Evaluation Community Survey Design and Construction Development Public Bid Outreach Share Data Collect Input Study Street Information Traffic Generators/Destinations Area Selection Demographic Data Define Area Boundaries Page 22 of 108 Page 5 of 9 Study: Once an area has been defined the following data will be compiled and evaluated: • Street Information within the Neighborhood: - Speed data (based on the 85th percentile) - Count data (Average Daily Trip (ADT) - Continuous sidewalks (one side, both sides, none?) - Lane width - On-street parking - Other elements such as vegetation, streetlights, street grade, etc. • Traffic Generators/Destinations Within and Adjacent to the Neighborhood: - Public Schools - City Parks - Community Centers - Local retail destination (convenience store) - Health services Outreach: Once all the data is compiled and staff has a completed an “existing conditions” report, staff will engage with the residents to gather input, feedback, concerns, and issues that residents identify in their area. The first round of engagement will be focused on sharing the results of the data collection effort and collect input from the community to understand their specific concerns. After this first round of engagement, staff will work internally on compiling a list of projects that could provide improvement, if any deficiencies or needs were identified. The project list will include a range of possible options to address the needs of the area, based on options from the traffic calming toolbox, but not limited to it. This list will be presented to the community via a second round of engagement, where community members can indicate which project(s) they think would be best in their area. Based on community feedback, budget, and feasibility, the City will choose a final project list. Design and Construction Once the list of locations and improvements are selected, a project will be established and administered through the City’s Engineering Capital Project team. The design and construction documents will be developed and then go through a public bid process to select a contractor who will build the improvements. Page 23 of 108 Page 6 of 9 Schedule for 2022 - 2024: 2022 2023 2024 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Project 1 Area Selection Study & Outreach Design & Outreach Construction Project 2 Area Selection Study & Outreach Design & Outreach Construction Project 3 Area Selection Study & Outreach Design & Outreach Construction* * ARPA funded improvements must be under contract by 12/31/2024 Post-Implementation Evaluation Within 1 year after traffic calming improvements are constructed, staff will survey neighborhood residents to evaluate if the residents felt that the project addressed the speeding concerns and if they did not, what concerns may persist. Based on this feedback, the City will determine if additional data should be collected and if modifications or additional traffic calming efforts should be prioritized and pursued. Equity To ensure affected populations are invited to learn about and help decide on the final projects, and to meet Title VI requirements, staff will research population data to ensure that outreach and education material is provided in the languages most spoken in the selected area, and research how to best engage with the residents. Material will also be made available in other languages as requested by residents. Page 24 of 108 Page 7 of 9 Traffic Calming Toolbox There are several types of traffic calming treatments available, each with a specific intent and impact to be considered before being selected. Some of these tools can be combined with others, based on community needs. The illustrations are concepts for reference only. There are many configurations possible for each tool. Other approaches may be considered. This list is not comprehensive. Vertical Measures Speed Cushions are raised installations that do not cross the whole roadway width but are approximately 1 to 2 ft apart and about 6 feet wide and 10 feet long, with a flat top (about 4 feet by 4 feet). They are designed to be most comfortable at a 25 to 30 MPH travel speed, and allow emergency vehicles to straddle them, to not slow them down in an emergency. Raised Intersections are raised installations built within a whole intersection area, slowing traffic as it approaches the intersection, allowing more time to stop for pedestrians. Other approaches can include raised crosswalks, which are raised crossing areas for pedestrians, and textured pavement, which is an installation of bricks, concrete pavers, stamped asphalt, or other material that provide a change in the roadway with a texture that potentially slow vehicles down. Speed Cushions Raised Intersection Raised Crosswalk Detail from City of Auburn Illustrations from Traffic Calming: Construction Standards 2021 State of the Practice ITE-FHWA, August 1999 Page 25 of 108 Page 8 of 9 Horizontal Measures Traffic Circles or traffic calming circles are raised islands located in the center of an intersection, forcing drivers to slow down to drive around it. Depending on the area and design needs, some are built with mountable curb to allow large vehicles such as emergency vehicles, garbage collection trucks, school buses, and large delivery trucks to drive over a portion of it. The center of the traffic circle can be landscaped or not. These are not to be confused with roundabouts which are typically larger in size and installed at larger and higher volume intersections in place of a traffic signal. Chicanes are curb extensions placed on each side of the street at an interval to form a S-shaped curve. This directs traffic to swerve and slow down to maneuver through the curves. Chicane design can include a protective bikeway, so that cyclists can continue along a straight path, away from motorists, while motorists must follow the curves. Traffic Circle Chicanes Illustrations from Traffic Calming: State of the Practice ITE-FHWA, August 1999 Narrowing means shortening the width of the street, to constrict the space. It can be constructed with crosswalks at intersections (with bulb-outs) or mid-block. Bulb-outs Mid-block narrowing Illustrations from Traffic Calming: State of the Practice ITE-FHWA, August 1999 Page 26 of 108 Page 9 of 9 Medians are raised islands located in the center of the street, which narrows the width of the street at that location. Some medians include a crosswalk and provide a pedestrian refuge area between the two travel lanes. Median Data Sources and References: FHWA Traffic Calming ePrimer: https://safety.fhwa.dot.gov/speedmgt/traffic_calm.cfm ITE / FHWA Traffic Calming: State of the Practice, August 1999: https://safety.fhwa.dot.gov/saferjourney1/library/pdf/toolsintro.pdf EPA Environmental Justice Mapping Tool: https://ejscreen.epa.gov/mapper/ Washington Office of Superintendent of Public Instruction (OSPI) for demographic data from student enrollment, and special programs. https://washingtonstatereportcard.ospi.k12.wa.us/ United States Census Bureau: https://www.census.gov/ American Community Survey: https://www.census.gov/programs-surveys/acs Temporary awareness signs as a localized safety campaign example: Seattle Yard Signs: https://www.seattle.gov/visionzero/resources/yard-signs Intercity Transit (Olympia) Yard Signs: https://www.intercitytransit.com/yard-signs Page 27 of 108 Page 28 of 108 Page 29 of 108 Page 30 of 108 Page 31 of 108 Page 32 of 108 Page 33 of 108 Page 34 of 108 Page 35 of 108 Page 36 of 108 Page 37 of 108 Page 38 of 108 Page 39 of 108 AGENDA BILL APPROVAL FORM Agenda Subject: Resolution No. 5637 (Comeau)(30 Minutes) Date: December 8, 2021 Department: Legal Attachments: Resolution No. 5637 PowerPoint Pres entation Resolution No. 5637 COA and MSRE Eas ement Agreement Budget Impact: Current Budget: $0 Proposed Revision: $0 Revised Budget: $0 Administrativ e Recommendation: For discussion only. Background for Motion: The City and MSRE have negotiated for a fair and just compensation of TWO HUNDRED FIVE THOUSAND DOLLARS AND 00/100 ($205,000) paid by MSRE Apartment, LLC, to the City of Auburn for the rights granted in the subject easements. The compensation agreed to by the parties is supported by an appraisal. Background Summary: The City owns real property that makes up a portion of the Safeway Parking Lot in downtown Auburn. MSRE Apartment, LLC has applied for permits to develop a mixed use project under the name of “Divine Court” at the site of the former Heritage Building. The development site is located adjacent to the City owned property. The Divine Court project will have onsite parking to service its tenants and residents, which can only be accessed by traveling across the City property. Further, the Divine Court project proposes to construct a designated parking area on the City property for the purposes of loading and unloading of parcels, furniture, fixtures, equipment and other items for the benefit of their property, its residents and tenants. Finally, to fulfill a requirement of the Civil permit, Divine Court will install a fire service utility line that will connect to a City water main located on the City owned property. This fire service utility will supply water directly to the Divine Court property once completed. The fire service utility will be owned and maintained by MSRE. Each of the three aforementioned rights require an easement for their rights and use of the City property. An appraisal was conducted to determine the fair market value of the easement rights. City staff and MSRE have determined $205,000 to be a fair and just compensation for the rights granted, an amount which is supported by the appraisal conducted. Rev iewed by Council Committees: Councilmember:Staff:Comeau Meeting Date:December 13, 2021 Item Number: Page 40 of 108 Page 41 of 108 AUBURNVALUESS E R V I C EENVIRONMENTE C O N O M YC H A R A C T E RSUSTAINABILITYW E L L N E S SC E L E B R AT I O NMSRE APARTMENT, LLC / CITY OF AUBURNEASEMENT OVER, ACROSS, THROUGH AND UNDERCITY OF AUBURN PARCEL 733140-0135RESOLUTION 5637Josh Arndt - Legal DepartmentPage 42 of 108 SERVICE ENVIRONMENT ECONOMY CHARACTER SUSTAINABILITY WELLNESS CELEBRATION MSRE Property -Red City Property -BlueLOCATION OF THE PROPERTIESPage 43 of 108 SERVICE ENVIRONMENT ECONOMY CHARACTER SUSTAINABILITY WELLNESS CELEBRATION1.Access onto and across the City owned property between a public street to MSRE property2.Parking for the purposes of loading and unloading of furniture, fixtures, equipment, etc. at the MSRE property3.Installing and maintaining a Fire Service Utility for the benefit of the MRSE propertyPURPOSE OF THE EASEMENTPage 44 of 108 SERVICE ENVIRONMENT ECONOMY CHARACTER SUSTAINABILITY WELLNESS CELEBRATIONSERVICE ENVIRONMENT ECONOMY CHARACTER SUSTAINABILITY WELLNESS CELEBRATION MSRE to pay City of Auburn $205,000 for the rights granted in the easement Value is reflective of a Fair Market AppraisalEASEMENT VALUEPage 45 of 108 Legal DepartmentAUBURNVALUESS E R V I C EENVIRONMENTE C O N O M YC H A R A C T E RSUSTAINABILITYW E L L N E S SC E L E B R AT I O NJOSH ARNDTREAL ESTATE MANAGERJARNDT@AUBURNWA.GOV253.288.4325Page 46 of 108 -------------------------------- Resolution No. 5637 12/6/2021 Page 1 of 3 Rev. 2020 RESOLUTION NO. 5637 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AUBURN, WASHINGTON, AUTHORIZING THE MAYOR TO EXECUTE AN EASEMENT AGREEMENT IN FAVOR OF MSRE APARTMENT, LLC FOR ACCESS, PARKING AND FIRE SERVICE OVER, ACROSS, THROUGH AND UNDER CITY OWNED PROPERTY – PARCEL NUMBER 733140-0135 WHEREAS, the City of Auburn owns the real property legally described as: PARCEL A, CITY OF AUBURN BOUNDARY LINE ADJUSTMENT NUMBER BLA13- 0007 RECORDED UNDER RECORDING NUMBER 20131108900002 RECORDS OF KING COUNTY, WASHINGTON LOCATED IN THE NORTHWEST QUARTER OF THE SOUTHWEST QUARTER OF SECTION 18, TOWNSHIP21 NORTH, RANGE 5 EAST, WILLAMETTE MERIDIAN, KING COUNTY, WASHINGTON; TOGETHER WITH VACATED ADJOINING ALLEY PER CITY OF AUBURN ORDINANCE NUMBER 3200 UNDER RECORDING NUMBER 7711100780; TOGETHER WITH VACATED ADJOINING ROAD AND ALLEY PER CITY OF AUBURN ORDINANCE NUMBER 6614 UNDER RECORDING NUMBER 20161010000262; SITUATE IN CITY OF AUBURN, KING COUNTY, WASHINGTON. also designated as King County parcel number 733140-0135, most commonly referred to as the City owned portion of the Safeway Parking Lot; and WHEREAS, MSRE APARTMENT, LLC, owns adjacent real property legally described as: THAT PORTION OF LOTS 3, 4 AND 5, RIVER VIEW ADDITION TO AUBURN, ACCORDING TO THE PLAT THEREOF, RECORDED IN VOLUME 9 OF PLATS, PAGE 90, IN KING COUNTY, WASHINGTON, DESCRIBED AS FOLLOWS : BEGINNING AT A STONE MONUMENT ON THE CENTERLINE OF EAST MAIN STREET "FORMERLY FIRST STREET" WHICH IS A MORE WESTERLY OF TWO STONE MONUMENTS AT THE INTERSECTION OF EAST MAIN STREET "FORMERLY FIRST STREET" AND SOUTH "A" STREET "FORMERLY MAIN STREET" IN THE CITY OF AUBURN, BOTH OF WHICH ARE RECOGNIZED BY THE CITY OF AUBURN AS QUARTER CORNERS, THENCE NORTH 86°56'30" EAST 139.5 FEET ALONG THE CENTERLINE OF SAID EAST MAIN STREET, THENCE SOUTH 30.05 FEET TO THE TRUE POINT OF BEGINNING, WHICH POINT IS Page 47 of 108 -------------------------------- Resolution No. 5637 12/6/2021 Page 2 of 3 Rev. 2020 SITUATED 6 INCHES WEST OF THE EAST SIDE OF THE EAST WALL OF THE ADIE BUILDING, THENCE SOUTH PARALLEL TO SAID EAST WALL 100 FEET; THENCE NORTH 86°56'30" EAST PARALLEL TO THE CENTERLINE OF SAID EAST MAIN STREET, 120 FEET; THENCE NORTH PARALLEL TO THE EAST WALL OF SAID ADIE BUILDING 100 FEET; THENCE SOUTH 86°56'30" WEST ALONG THE PROPERTY LINE 30 FEET SOUTH OF THE CENTERLINE OF EAST MAIN STREET, 120 FEET TO THE TRUE POINT OF BEGINNING. SITUATE IN THE COTY OF AUBURN, COUNTY OF KING, STATE OF WASHINGTON. also designated as King County parcel number 733140-0055; WHEREAS, MSRE APARTMENT, LLC, requests the rights of 1) access, 2) parking for the purpose of loading and unloading of parcels, and 3) a fire service easement over, across, through and under the City owned property to service the MSRE owned property; WHEREAS, MSRE Apartment, LLC has agreed to pay to the City of Auburn compensation in the amount of TWO HUNDRED FIVE THOUSAND DOLLARS AND NO CENTS ($205,000), for the rights granted in this easement, an amount reflective of the fair market value of easement rights and acceptable to the City; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF AUBURN, WASHINGTON, RESOLVES as follows: Section 1. The Mayor is authorized to execute an Easement Agreement in favor of MSRE Apartment LLC, which easement will be in substantial conformity with the easement agreement attached. Section 2. The Mayor is authorized to implement those administrative procedures necessary to carry out the directives of this Resolution. Page 48 of 108 -------------------------------- Resolution No. 5637 12/6/2021 Page 3 of 3 Rev. 2020 Section 3. This Resolution will take effect and be in full force on passage and signatures. Dated and Signed: CITY OF AUBURN ____________________________ NANCY BACKUS, MAYOR ATTEST: ______________________________ Shawn Campbell, MMC, City Clerk APPROVED AS TO FORM: ______________________________ Kendra Comeau, City Attorney Page 49 of 108 Page 1 of 15 RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO: City of Auburn 25 W Main Auburn, WA 98001 ATTN: Josh Arndt The information contained in this boxed section is for recording purposes only pursuant to RCW 36.18 and RCW 65.04, and is not to be relied upon for any other purpose, and shall not affect the intent of or any warranty contained in the document itself. Document Title: Easement Agreement Grantor: City of Auburn, a Washington municipal corporation Grantee: MSRE Apartment, LLC, a Washington limited liability company Tax Parcel ID Numbers: 733140-0135 Q-S-T-R of burdened property: SW-18-21-5 Full Legal Descriptions Located: Exhibits A, B, C and D EASEMENT AGREEMENT THIS EASEMENT AGREEMENT (“Agreement”) is entered into this ______ day of _____________________, 2021 (the “Effective Date”), by and between City of Auburn, a Washington municipal corporation (“Grantor”), and MSRE Apartment, LLC, a Washington limited liability company (“Grantee”). RECITALS A. Grantor is the owner of real property more particularly described and depicted in Exhibit A, attached hereto and incorporated herein by reference (“Grantor Property”). B. Grantee is the owner of real property more particularly described and depicted in Exhibit B, attached hereto and incorporated herein by reference (“Grantee Property”) C. In connection with the proposed development of the Grantee Property, Grantor has agreed to sell and grant the following easements to Grantee over the Grantor Property in exchange for TWO HUNDRED AND FIVE THOUSAND DOLLARS ($205,000): one for vehicular ingress and egress from Grantee’s Property through the drive aisles of the parking lot comprising the Grantor Property to an adjoining public street, a second for exclusive parking for the loading and Page 50 of 108 Page 2 of 15 unloading of parcels, furnishings, and equipment, the location of which at the time of executing this Agreement being depicted in Exhibit C; and a Fire Service Easement, to install and maintain a fire line water facility located in that area of the Grantor’s property described and depicted in Exhibit D, attached hereto, by upon the terms and conditions set forth in this Agreement. The size, shape, and location of each such easement is herein called the “Easement Areas”. NOW, THEREFORE, the parties agree as follows: AGREEMENT 1. Grant of Access Easement. Grantor, on behalf of Grantor and Grantor’s successors and assigns, hereby grants and conveys to Grantee a perpetual non-exclusive easement over, across, and through the drive aisles of the parking lot on Grantor’s Property (Exhibit A) solely for purposes of vehicular access to Grantee’s Property to and from an adjoining public street (the “Access Easement Area”). Grantor reserves the right in its sole and absolute discretion to relocate, remove, or add to the number of ingress/egress points of access to and from a public street, and control, amend, alter, direct, or redirect the flow and direction of vehicular traffic and drive aisles on Grantor’s Property provided that, with the exception of what may currently exist at the execution of this Agreement, the revised Access Easement Area shall meet all applicable governing code requirements for legal drive aisles, the Access Easement Area shall maintain a minimum clear height of 12 feet and the revised Access Easement Area shall provide Grantee with functional access to Grantee’s Property. Grantor is responsible, at its sole cost and discretion, for the maintenance, reconfiguration, repair, replacement and care (together “Work”) to the surface and subsurface of the Grantor’s property located within the Access Easement Area. The Grantor has full discretion and authority as to the type of surface, manner of repair, and manner of replacement of the surface and subsurface used or placed upon Grantor’s property, and all other aspects of any Work performed in the Access Easement Area. Grantee acknowledges that the Work may result in blocked access to the Access Easement Area for those periods of time reasonably required to accomplish the Work. Grantor will make all reasonable accommodations to protect, maintain and minimize interruption of access to the Grantee’s property while conducting its Work, including providing for an alternative route to the extent possible. Grantee shall reimburse Grantor for the reasonable cost to repair any damage to the Access Easement Area specifically caused by Grantee, its employees, contractors or agents. If Grantee fails to do so within ninety (90) days of notice by Grantor, which shall include reasonable supporting documentation, the unpaid amount for such repair shall be secured by a continuing consensual lien on the dominant estate for the benefit of Grantor. In exercising Grantee’s right of ingress and egress over, across and through the Access Easement Area, Grantee will make all reasonable accommodations to minimize interruption of and protect and maintain access by the public, if the Area is open to the public. Grantee shall diligently remove or cause to have removed any obstructions to vehicular travel in the Access Easement Area caused by Grantee or Grantee’s employees, contractors, agents, licensees, lessees, or guests (“Grantee’s guests” is defined as any individual, or individuals living, visiting, or working in, at, or on Grantee’s Property). Page 51 of 108 Page 3 of 15 2. Grant of Exclusive Parking Easement. Grantor, on behalf of Grantor and Grantor’s successors and assigns, hereby grants and conveys to Grantee a perpetual exclusive easement for parking over and upon that portion of Grantor’s Property depicted in Exhibit “C” (the “Parking Easement Area”) for purposes of loading and unloading parcels, furniture, fixtures, equipment and materials (the “Parking Easement”). Grantor in its sole cost and discretion is responsible for the maintenance, repair, replacement and care (together “Work”) to the surface and subsurface of the Grantor’s property located within the Parking Easement Area. The Grantor has full discretion and authority as to the type of surface, manner of repair and manner of replacement of the surface and subsurface used or placed upon Grantor’s property, but covenants that all Work will be performed in a commercially reasonable manner and all Work and materials will meet the existing codes. Grantor will make all reasonable accommodations to minimize interruptions of, and protect and maintain access to the Grantee’s property while fulfilling its work obligations, however Grantee acknowledges that the Work may result in blocked access to the Parking Easement Area for periods of time. Unless Grantor is performing Emergency Work (being defined as repair, replacement or restoration of the Grantor’s Property or a facility or utility located on, above or below Grantor’s Property not otherwise planned and being made necessary to protect persons or property from imminent exposure to danger, or work to restore utility services), Grantor further agrees to temporarily relocate the Parking Easement Area if Grantor does Work that will result in inaccessibility to the Parking Easement Area for more than 48 hours. 2.1 Size and Location of the Parking Easement. The initial location of the Parking Easement Area is set forth in Exhibit C. Grantor reserves the right to relocate Parking Easement Area from time-to-time after no less than 7 days written notice to Grantee. Grantor agrees to work in good faith with Grantee to identify the relocation area of Parking Easement Area and to relocate it to a reasonable location. The Grantor may modify the size and shape of the Parking Easement Area in connection with such relocation provided that the modification maintains approximately the same length and width as the area depicted in Exhibit C and a 12ft minimum clear height, so as to not diminish the utility of the Parking Easement for Grantee’s intended purpose identified above (such as the new Parking Easement is reasonably close to Grantee’s Property). Temporary relocation of the Parking Easement Area resulting from Work being performed by Grantor shall not be subject to size requirements, only that the temporary relocation area meet City code requirements of a legal parking stall. The Temporary relocation means the duration of such relocation is less than 30 days. 2.2 Signage. Grantee shall have the right at Grantee’s expense to designate and mark Grantee’s Parking. Grantee covenants to obtain all necessary permits for signing the Parking Easement Area. 2.3 Leasehold Excise Tax. Grantee shall pay to City upon execution of this agreement the leasehold excise tax required by Chapter 82.29A RCW, or 12.84% of the portion of Grantee’s payment to City that is compensation for the city’s grant of the Parking Easement. City and Grantee agree that the excise tax amount is $2,447.95. 3. Fire Service Easement. Grantor, on behalf of Grantor and Grantor’s successors and assigns, hereby grants and conveys to Grantee a, perpetual nonexclusive easement under, over, Page 52 of 108 Page 4 of 15 through and across Grantor’s property for the purpose of laying, maintaining, and installing a fire line water facility (the “Fire Service Facility) upon that portion of Grantor’s Property located five feet on either side of the centerline of the Fire Service Facility, more specifically described and depicted in Exhibit D (the “Fire Service Easement Area”). Grantor additionally grants to the Grantee, the use of such additional area immediately adjacent to the Fire Line Easement Area as shall be required for the construction, maintenance and operation of said fire line facilities, provided Grantee shall use reasonable efforts to not block, restrict or impeded access or full use of the Grantor’s property. The use of such additional area shall be held to a reasonable minimum and in the case of any damage or disruption of Grantor’s Property, the Grantee shall return the property to a condition reasonably comparable to its condition as it existed immediately before entry and/or work was performed by the Grantee or its agents. Grantee shall coordinate all construction, maintenance and similar activities in the Fire Line Easement Area with Grantor so as to minimize disruption to the public’s access over the Easement Area 4. Conditions of Easements. The Easements are granted subject to and conditioned upon the following terms, conditions, and covenants which the parties, their agents, tenants, successors and assigns, agree to fully observe and perform: 4.1 Rights of Easement. Grantee, its agents, contractors, subcontractors and their respective successors and assigns, shall have the use of the Easement Areas for the purposes identified in Section 1, 2 and 3 above, and shall have the right to use abutting land adjoining the Easement Areas when necessary for the fulfilment of Grantee’s purposes described in Section 3. Grantee shall, at all times, leave intact all security facilities around the Grantor Property (if any) and shall, upon entering and leaving the Grantor Property, secure all gates, fences, and other security facilities against intrusion by third parties (if and when applicable). No such security facilities shall impede Grantee’s use of the Easement Areas. 4.2 Permissible Use. Grantee agrees it will use the Easement Areas only for purposes set forth in this Agreement. 4.3 Improvements and Activities. Except with respect to the Fire Line Facility, any Improvements constructed in the Easement Areas shall be owned by Grantor, and the expense of installation and construction of any improvements to the Grantor’s property (the “Parking Lot Improvements”) from time to time shall be paid by Grantor. Grantee shall neither construct, erect, or install any improvements or structures within the Parking and Access Easement Areas, nor have any obligations or expense with respect to any Parking Lot Improvements. 4.4 Retained Rights. In addition to those specific rights reserved in Sections 1, 2 and 3 above, Grantor shall have all rights to the Easement Area(s) not granted hereby. Without limiting the foregoing, Grantor shall have all rights, except for the rights that have been explicitly given to Grantee in this Agreement, to enter, cross and occupy the Easement Areas, to permit the Page 53 of 108 Page 5 of 15 public to do so, and to construct driveways and walk-ways and other Parking Lot Improvements there on which are consistent with the rights granted Grantee hereunder. 4.5 Assignment and Successors. The rights and obligations of the parties set forth in this Agreement shall inure to the benefit of, and shall be binding upon, their respective successors and assigns. 5. Indemnification. Grantee, its successors and assigns, releases, covenants and agrees to defend, indemnify and hold harmless Grantor and Grantor’s officers, employees, representatives, agents, successors and assigns (hereinafter collectively the “Indemnitees”) from all claims, losses, expenses, liens (including, without limitation, liens or claims for services rendered for labor or materials furnished), encumbrances, liabilities, penalties, judgments, settlements, fines, damages, environmental response and cleanup costs, actions (civil, criminal or administrative), and costs, including without limitation, attorney’s fees, court costs, consultant fees, expert fees and other litigation-related expenses, brought against, imposed upon, suffered by or paid by Grantor and arising out of or in connection with or resulting from, indirectly or directly, the use by Grantee, its agents, employees, tenants, contractors, invitees, and successors and assigns of the easement areas defined throughout this Agreement. 6. Automatic Easement Termination. The rights granted within this easement are specific to the development and construction of the improvements as permitted by the City of Auburn under building permit BLD19-0154. Upon the building being demolished, this Agreement and all rights and privileges granted within this Agreement will automatically terminate. Notwithstanding the foregoing, the rights granted herein shall not terminate if the improvements are damaged or destroyed by earthquake, fire or other casualty and Grantee or its successor diligently commence and pursue reconstruction or replacement of the improvements within a commercially reasonable period of time and in compliance with then applicable codes and ordinances. 7. General Provisions. The following general provisions shall apply with respect to this Agreement: 7.1 Successors and Assigns. The rights and obligations created pursuant to this Agreement shall bind all subsequent owners of the Grantor and Grantee’s Property, as described in Exhibits A & B. 7.2 Running Covenants. The terms, and conditions, covenants and easements in this Agreement shall be deemed to be covenants running with the land and shall inure to and be binding upon the successors, assigns, heirs, and personal representatives of all the parties. 7.3 Legal Construction. This easement agreement will not be construed more or less favorably between the Parties by reason of authorship as both Parties had an opportunity to have the document reviewed by their counsel. This agreement may be executed in duplicate original counterparts and all copies of this agreement so executed shall be deemed to be one agreement. Page 54 of 108 Page 6 of 15 7.4 Entire Agreement; Modifications. This Agreement represents the entire understanding between the parties with respect to the transactions contemplated herein and all prior or contemporaneous agreements, understandings, representations and statements, oral or written, are merged into this Agreement. Neither this Agreement nor any provision in this Agreement may be waived, modified, amended, discharged, or terminated, except by an instrument in writing signed by both parties and then, only to the extent set forth in such instrument. 7.5 Notices. Any notice required or permitted to be delivered under this Agreement shall be in writing and shall be validly given and made to another party if delivered either personally or by Federal Express or other overnight delivery service of recognized standing. If such notice is personally delivered, it shall be deemed given and received at the time of such delivery. If such notice is delivered by UPS, Federal Express, or other overnight delivery service of recognized standing, it shall be deemed given one (1) business day after the deposit with such delivery service. Each such notice shall be deemed given only if properly addressed to the party to whom such notice is given, as follows: If to Grantor: City of Auburn City Attorney’s Office Auburn, Washington 98001 Attn: City Attorney Email: N/A Phone: (253) 804 3108 If to Grantee: MSRE Apartments, LLC 334 Wells Avenue S., Suite G Renton, Washington 98057 Attn: Melina Lin Email: melina@ms-apartment.com Phone: (206) 686-9886 By giving to the other party at least fifteen (15) days written notice, the parties to this Agreement and their respective successors and assigns shall have the right from time to time and at any time to change their respective address and each shall have the right to specify as its address any other address. 7.6 Severability. If one or more of the provisions of this Agreement, or its application, is determined to be invalid, illegal or unenforceable in any respect, the validity, legality and enforceability of the remaining provisions or any other application shall in no way be affected or impaired. 7.7 Applicable Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Washington. Page 55 of 108 Page 7 of 15 7.8 Recording. Grantee shall, at its expense, record this easement agreement with the King County Recorder. After this agreement is recorded, Grantee shall provide Grantor with a copy of the recorded easement agreement. 7.9 Attorneys' Fees. If either party shall bring suit to enforce or interpret this Agreement and a judgment is entered, the substantially prevailing party shall be paid its attorneys’ fees by the other party, and all costs and expenses in connection with such suit shall also be paid to the substantially prevailing party, which sum shall be included in any such judgment or decree. Such attorneys’ fees and expenses shall include those incurred before, during and after trial, including those related to any appeal. GRANTOR: CITY OF AUBURN, a Washington municipal corporation By: _____________________________ Name: Nancy Backus, Mayor GRANTEE: MSRE Apartments, LLC, a Washington limited liability company By: _________________________ Melina Lin, Manager Page 56 of 108 Page 8 of 15 STATE OF WASHINGTON ) ) ss. COUNTY OF KING ) On this ____ day of June, I certify that I know or have satisfactory evidence that Melina Lin is the person who appeared before me, and said person acknowledged that he signed this instrument, on oath stated that she was authorized to execute the instrument and acknowledged it as the Manager of MSRE Apartments, LLC, a Washington limited liability company, to be the free and voluntary act of such party for the uses and purposes mentioned in the instrument. IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal the day and year first above written. Printed Name: Notary Public in and for the State of Washington residing at My commission expires: STATE OF WASHINGTON ) ) ss. COUNTY OF KING ) On this ____ day of February, I certify that I know or have satisfactory evidence that _____________________ is the person who appeared before me, and said person acknowledged that (s)he signed this instrument, on oath stated that he was authorized to execute the instrument and acknowledged it as the ___________________ of the City of Auburn, a Washington municipal corporation, to be the free and voluntary act of such party for the uses and purposes mentioned in the instrument. IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal the day and year first above written. Printed Name: Notary Public in and for the State of Washington residing at My commission expires: Page 57 of 108 EXHIBIT A GRANTOR PROPERTY Page 58 of 108 Page 59 of 108 EXHIBIT B GRANTEE PROPERTY Page 60 of 108 Page 61 of 108 EXHIBIT C PARKING EASEMENT AREA Page 62 of 108 EXHIBIT D FIRE SERVICE EASEMENT AREA Page 63 of 108 Page 64 of 108 AGENDA BILL APPROVAL FORM Agenda Subject: Ordinance No. 6845 (Thomas)(20 Minutes) Date: December 8, 2021 Department: Finance Attachments: Ordinance No. 6845 Budget Impact: Administrativ e Recommendation: For discussion only. Background for Motion: Background Summary: The City of Auburn’s Business and Occupation Tax code currently sets a significantly low taxability threshold for non-profit health care organizations (HCO’s). Further, the existing language is unclear on how to accurately calculate the given threshold. Due to the nature of non-profit health care organization finances, as well as the valuable services that HCO’s provide the City of Auburn and its residents, it is in the City’s best interest to consider an amendment. This amendment would establish a higher exemption threshold for HCO’s, as well as add clarity for the exemption threshold calculation. Rev iewed by Council Committees: Councilmember:Baggett Staff:Thomas Meeting Date:December 13, 2021 Item Number: Page 65 of 108 -------------------------------- Ordinance No. 6845 December 9, 2021 Page 1 of 4 ORDINANCE NO. 6845 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF AUBURN, WASHINGTON, AMENDING SECTIONS 3.53.100 AND 3.53.110 REGARDING CITY BUSINESS AND OCCUPATION (B&O) TAX EXEMPTIONS AND DEDUCTIONS ALLOWED TO NONPROFIT HEALTH CARE ORGANIZATIONS IN THE CITY WHEREAS, ACC Chapter 3.53 sets forth the City’s business and occupations (B&O) tax. ACC sections 3.53.100 and 3.53.110 establish B&O tax exemptions and deductions for several classes and types of businesses operating in the City, including nonprofit health care organizations (HCOs); WHEREAS, ACC 3.53.100 currently provides a B&O tax exemption to nonprofit HCOs operating in the City with gross income at or below a required threshold. But using gross income to measure a nonprofit HCOs B&O tax exemption eligibility does not reflect an operating nonprofit HCO’s financial reality; WHEREAS, a significant portion of a nonprofit HCO’s services are devoted to providing the City’s most vulnerable indigent and uninsured residents with needed health care and related services. Nonprofit HCOs are able to charge these residents fees for services that would reflect the HCO’s gross income. However, these HCOs are unable in many cases to actually collect charged amounts, and despite being considered gross income these uncollected charges generate no actual revenue for a nonprofit HCO; WHEREAS, to incentivize the continued financially stable operation of nonprofit HCOs in the City, which is increasingly important during the ongoing COVID-19 pandemic, ACC 3.53.100 should be amended to use a nonprofit HCO’s net operating Page 66 of 108 -------------------------------- Ordinance No. 6845 December 9, 2021 Page 2 of 4 income as the basis to determine B&O tax exemption eligibility. This amendment would more accurately reflect revenue a nonprofit HCO actually receives from its operations for the purpose of a nonprofit HCO’s exemption from City B&O tax; WHEREAS, ACC 3.53.110 should also be amended to clarify that a nonprofit HCO’s gross income remains the basis for measuring B&O tax deductions allowed to a nonprofit HCO. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF AUBURN, WASHINGTON, DO ORDAIN as follows: Section 1. Amendment to City Code. Subsection CC of Auburn City Code section 3.53.100 is amended to read as follows: CC. Nonprofit Health Care Organization Fees. 1. This chapter shall not apply to amounts that a nonprofit health care organization derivesd from charges or fees for medical, nursing, ambulance, hospital, or and other appropriate outpatient care as charges and services fees by nonprofit health care organizations for the benefit of subscribers, where none of the derived amounts such fees and charges inure to the benefit of the organization or any of its employees; provided further, that i. 2. The exemption in paragraph 1 of this subsection CC shall not apply if athe nonprofit health care organization’s annual net operating gross income, minus any allowed deductions or exemptions as provided in this chapter, exceeds $310,000,000.00 for the reporting period in which the exemption is claimedfor any calendar year. For purposes of this subsection, “net operating income” shall mean income in an amount equal to: a. the organization’s aggregate gross revenue generated from operating activities and services, less— b. uncollectable debts and uncompensated services, and less— c. total expenses related to operating activities. Capital expenditures, debt service and non-cash charges, such as depreciation of assets or amortization of financing costs, shall not be included in the Page 67 of 108 -------------------------------- Ordinance No. 6845 December 9, 2021 Page 3 of 4 calculation of net operating income., the exemption in this subsection shall not apply to the amounts derived from health care organization service fees and charges. 3. Nonprofit health care organizations exceeding the $3010,000,000.00 in gross income in a reporting period threshold may take the deductions allowed in ACC 3.53.110(S). Section 2. Amendment to City Code. Subsection S of Auburn City Code section 3.53.110 is amended to read as follows: S. Nonprofit Health Care Organization Fees. In computing the tax, nonprofit health care organizations may deduct up to $30,000,000 in gross revenue derived from medical, nursing, ambulance, hospital, and other appropriate outpatient care as charges and service fees by the nonprofit health care organization. Section 3. Implementation. The Mayor is authorized to implement those administrative procedures necessary to carry out the directives of this legislation. Section 4. Severability. The provisions of this ordinance are declared to be separate and severable. The invalidity of any clause, sentence, paragraph, subdivision, section, or portion of this ordinance, or the invalidity of the application of it to any person or circumstance, will not affect the validity of the remainder of this ordinance, or the validity of its application to other persons or circumstances. Page 68 of 108 -------------------------------- Ordinance No. 6845 December 9, 2021 Page 4 of 4 Section 5. Effective date. This Ordinance will take effect and be in force five days from and after its passage, approval, and publication as provided by law. INTRODUCED: _______________ PASSED: ____________________ APPROVED: _________________ ____________________________ NANCY BACKUS, MAYOR ATTEST: ____________________________ Shawn Campbell, MMC, City Clerk APPROVED AS TO FORM: ____________________________ Kendra Comeau, City Attorney Published: ____________________ Page 69 of 108 AGENDA BILL APPROVAL FORM Agenda Subject: 3rd Quarter 2021 Financial Report Update (Thomas)(15 Minutes) Date: December 8, 2021 Department: Finance Attachments: Q3 2021 Financial Report Budget Impact: Administrativ e Recommendation: For discussion only. Background for Motion: Background Summary: The 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 September 2021 status report based on financial data available as of November 22, 2021. Sales tax information represents business activity that occurred through July 2021. Rev iewed by Council Committees: Councilmember:Baggett Staff:Thomas Meeting Date:December 13, 2021 Item Number: Page 70 of 108 Quarterly Financial Report Through September 2021 General Fund Summary $12.7 $14.1 $11.5 $4.1 $0.7 $1.9 $5.1 $1.2 $36.1 $17.3 $7.5 $4.4 $12.9 $18.0 $4.8 $1.3 $2.0 $6.0 $1.5 $33.2 $13.7 $7.5 $4.4 $11.2 PropertyTaxesSalesTaxesOtherTaxesIntergovernmental(Grants, etc.)DevelopmentService FeesCulture &RecreationOther Fees& ChargesOtherRevenuesPersonnelSupplies& ServicesOtherExpendituresTransfersOutRevenues Expenditures $0 $10 $20 $30 $40 $50 Millions2021 Budget 2021 Actuals (Favorable) 2021 Actuals (Unfavorable) General Fund Revenues and Expenditures (Through September 2021)$51.3 $65.3$57.6 $58.7 Total Revenues Total Expenditures $0 $20 $40 $60 $80 Millions$1.0 $1.2 $2.4 $2.9 $3.0 $4.1 $0.8 $3.8 $23.2 $2.6 $10.7 $2.9 $6.7 $0.8 $0.9 $2.0 $2.6 $3.0 $3.6 $0.7 $3.4 $21.8 $2.6 $8.8 $2.8 $5.8 Council& MayorAdministrativeServicesHumanResourcesFinanceCity AttorneyCommunityDevelopmentCommunity &Human ServicesJail - SCOREPolicePublicWorksParks, Arts& RecreationStreetsNon-Departmental$0 $5 $10 $15 $20 $25 $30 Millions2021 Budget 2021 Actuals (Favorable) 2021 Actuals (Unfavorable) General Fund Expenditures by Department (Through September 2021) 1 Page 71 of 108 Quarterly Financial Report Through September 2021 2 General Fund 2020 Summary of Sources and Uses Annual YT D YTD YTD Budget Budget Actual Actual Amount Operating Revenues Property Tax 6 22,842,300$ 12,671,500$ 12,855,125$ 12,376,181$ 183,625$ 1.4 % Retail Sales Tax 3, 6-8 16,947,000 12,389,300 15,885,829 13,678,442 3,496,529 28.2 % Affordable Housing Sales Tax Credit 123,700 92,775 107,535 104,759 14,760 15.9 % Sales Tax - Pierce County Parks 99,700 73,400 96,683 80,900 23,283 31.7 % Criminal Justice Sales Tax 2,034,000 1,499,700 1,892,852 1,667,278 393,152 26.2 % Brokered Natural Gas Tax 130,000 101,900 119,248 123,168 17,348 17.0 % City Utilities Tax 3, 8-10 6,471,400 4,822,200 4,715,241 3,413,691 (106,959)(2.2)% Admissions Tax 10 320,000 240,003 98,311 197,965 (141,692)(59.0)% Electric Tax 8-10 3,723,200 2,899,700 2,858,500 3,242,922 (41,200)(1.4)% Natural Gas Tax 8-10 1,116,900 956,200 959,281 1,114,296 3,081 0.3 % Cable Franchise Fee 876,900 657,675 681,138 677,983 23,463 3.6 % Cable Utility Tax 960,000 720,000 718,597 864,091 (1,403)(0.2)% Cable Franchise Fee - Capital 60,000 45,000 43,372 46,529 (1,628)(3.6)% Telephone Tax 8-10 765,400 582,700 529,685 831,771 (53,015)(9.1)% Solid Waste Tax (external)8-10 112,500 84,420 170,348 166,230 85,928 101.8 % Leasehold Excise Tax 210,000 197,500 209,931 211,704 12,431 6.3 % Gambling Excise Tax 11 307,000 230,250 60,422 74,995 (169,828) (73.8)% Taxes sub-total 57,100,000$ 38,264,223$ 42,002,098$ 38,872,904$ 3,737,875$ 9.8 % Business License Fees 11-12 385,400$ 153,400$ 138,813$ 147,995$ (14,587)$ (9.5)% Building Permits 12-13 858,400 545,300 1,130,736 686,295 585,436 107.4 % Other Licenses & Permits 3 785,600 606,000 1,021,828 729,676 415,828 68.6 % Intergovernmental (Grants, etc.)14-15 5,483,020 4,108,230 4,833,268 4,529,943 725,038 17.6 % Charges for Services:15-17 General Government Services 15 3,474,060 2,605,545 2,486,324 2,234,136 (119,221)(4.6)% Public Safety 15-16 929,900 697,425 891,517 704,263 194,092 27.8 % Development Services Fees 15-16 896,100 699,800 1,273,177 754,150 573,377 81.9 % Culture and Recreation 15-17 2,212,630 1,857,200 2,026,882 1,332,318 169,682 9.1 % Fines and Penalties 17-18 722,200 539,900 335,759 475,518 (204,141) (37.8)% Fees/Charges/Fines sub-total 15,747,310$ 11,812,800$ 14,138,305$ 11,594,294$ 2,325,505$ 19.7 % Interest and Investment Earnings 19 138,800$ 104,100$ 68,436$ 377,313$ (35,664)$ (34.3)% Rents and Leases 19 754,600 649,100 738,100 386,007 89,000 13.7 % Contributions and Donations 19 28,000 21,000 12,648 28,876 (8,352)(39.8)% Other Miscellaneous 19 217,800 186,277 196,203 171,276 9,927 5.3 % Transfers In 162,000 162,000 162,000 2,081,527 0 0.0 % Insurance Recoveries - Capital & Operating 100,000 93,750 273,784 71,391 180,034 192.0 % Other Revenues sub-total 1,401,200$ 1,216,227$ 1,451,171$ 3,116,390$ 234,944$ 19.3 % Total Operating Revenues 74,248,510$ 51,293,250$ 57,591,574$ 53,583,588$ 6,298,324$ 12.3 % Operating Expenditures Council & Mayor 1,375,222$ 1,045,700$ 793,609$ 708,024$ 252,091$ 24.1 % Administration 1,473,404 1,183,167 937,924 2,494,166 245,243 20.7 % Human Resources 2,160,531 1,569,200 1,320,958 1,165,246 248,242 15.8 % Municipal Court & Probation 3,160,261 808,846 689,357 666,941 119,489 14.8 % Finance 3,833,612 2,922,500 2,555,750 2,360,243 366,750 12.5 % City Attorney 4,109,213 3,023,900 2,983,983 1,748,226 39,917 1.3 % Community Development 5,560,908 4,125,200 3,643,522 3,178,358 481,678 11.7 % Community & Human Services (Comm Devel)1,214,797 776,300 672,272 632,686 104,028 13.4 % Jail - SCORE 5,021,600 3,766,200 3,423,825 3,423,825 342,375 9.1 % Police 30,935,021 23,191,617 21,790,269 21,335,656 1,401,348 6.0 % Public Works 3,449,062 2,589,700 2,579,124 2,684,001 10,576 0.4 % Parks, Arts & Recreation 14,131,508 10,684,900 8,801,490 8,094,481 1,883,410 17.6 % Streets 4,092,068 2,909,600 2,769,792 2,547,290 139,808 4.8 % Non-Departmental 7,823,870 6,684,703 5,781,942 1,279,897 902,760 13.5 % Total Operating Expenditures 88,341,077$ 65,281,532$ 58,743,818$ 52,319,041$ 6,537,714$ 10.0 % Page Ref 2021 2021 YTD Budget vs. Actual Favorable (Unfavorable) Percentage 2 Page 72 of 108 Quarterly Financial Report Through September 2021 3 Executive Summary This report provides an overview of the City’s overall financial position for the fiscal period ending September 30, 2021, reflecting financial data available as of November 22, 2021. General Fund: Due to the COVID-19 pandemic, some General Fund revenues are lower than the pre-pandemic levels due to the economic impact the pandemic has had at the local and regional level. In late March, both King and Pierce counties advanced to Phase III of the state’s Healthy Washington Roadmap to Recovery plan. Phase III allowed businesses to have indoor dining occupancy up to 50%; retail, fitness and competitive sports at 50% occupancy; and indoor entertainment venues like theaters, concerts, museums, bowling alleys, cardrooms, zoos, etc. were allowed to reopen with restrictions. At the end of June, Washington state reopened under the Washington Ready plan. All industry sectors previously covered by the Roadmap to Recovery or the Safe Start plan (with limited exceptions) were allowed to return to usual capacity and operations. Therefore, at the end of the second quarter of 2021 there were additional changes in business occupancy allowances and most restrictions had been lifted. Throughout the third quarter of 2021, business were able to resume normal operations but some businesses have continued to have modified hours and/or capacity restrictions. Note: In 2020 to help close the revenue gap due to the COVID-19 pandemic, the City implemented several short-term policy changes in 2020. Effective January 1, 2021, all of those policy changes were discontinued. Overall, General Fund revenues collected through Q3-2021 totaled $57.6 million as compared to a year-to-date (YTD) budget of $51.3 million, or 12.3% above expectations. Notable variances to YTD budget include: • Retail Sales Tax: The sales tax report through September 2021 (which is provided as an attachment to this report) reflects amounts remitted to the City of Auburn based on sales from November 2020 through July 2021. Total retail sales tax revenue collected through September 2021 totaled $15.9 million and was $3.5 million, or 28.2%, above budget. Collections were also $2.2 million, or 16.1%, more than what was collected through Q3-2020. The most notable increases in revenues compared to last year were seen in the retail trade and automotive categories, most likely due to pent up demand. [pages 6-8] • In November 2020, City Council approved Ordinance No. 6801 which increased the City utility tax rate from 7.0% to 10.0% effective January 1, 2021. While 1.0% of utility tax revenue continues to support the Arterial Street Preservation Fund, this change increases General Fund tax revenues for Water, Sewer, Storm and Solid Waste services from the previous 6.0% to 9.0%. City utility tax revenues through Q3-2021 were $108,000 unfavorable to budget although they were $1.3 million higher than the same period last year. [pages 8-10] • Other Licenses and Permits: Revenues in this category primarily consist of excavation/construction permits, street and curb permits as well as plumbing permits. Through the third quarter of 2021, these revenues totaled $1.0 million and were $416,000 favorable to budget. The majority of this favorability to budget was seen in excavation/construction permit revenues. 3 Page 73 of 108 Quarterly Financial Report Through September 2021 4 • Building permit revenues collected through September 2021 totaled $1.1 million and were $585,000, or 107.4%, above budget. There were four significant commercial projects in the City that contributed to higher-than-anticipated revenues this year, including the replacement of two elementary schools. The total number of building permits issued through Q3-2021 totaled 397, which is 16 (7.0%) more than the number issued through Q3-2020. [pages 12-13] • Intergovernmental revenues collected through the third quarter of 2021 totaled $4.8 million and were $725,000 favorable to budget. The majority of this variance was due primarily to the unbudgeted receipt of $331,000 of one-time Federal monies in July that are intended to be used for police reform and the unbudgeted receipt of $250,000 in September of Streamlined Sales Tax Mitigation monies. [pages 14-15] General Fund expenditures through Q3-2021 totaled $58.7 million compared to a budget of $65.3 million, representing a 10.0% favorable variance to budget. All departments operated within their allocated quarterly budget through the third quarter of 2021. Of the favorable variance to budget, $2.9 million is due to staff vacancies as well as the fact that medical and dental benefit costs in 2021 were lower than budgeted. 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, as well as local 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. Variances in budget and actuals between years are generally due to the schedule and level of activity on projects in the fund, and the timing of grant reimbursements and other funding. ​YTD Budget $51.3 M ​YTD Budget $65.3 M ​YTD Actuals $57.6 M ​YTD Actuals $58.7 M $0 $5 $10 $15 $20 $25 $30 $35 $40 $45 $50 $55 $60 $65 $70 $75 $80 $85 $90 Revenues Expenditures $ Millions General Fund Revenues vs. Expenditures Through September 2021 4 Page 74 of 108 Quarterly Financial Report Through September 2021 5 Through the third quarter of 2021, Arterial Street Fund revenues totaled $2.2 million as compared to revenues of $1.4 million through September 2020, while expenditures totaled $2.7 million as compared to expenditures of $1.3 million through the third quarter of 2020. [pages 22– 23] Local Street Fund revenues of $654,000 compare to revenues of $1.5 million through September 2020. Expenditures through the third quarter were $522,000 as compared with $1.0 million through the third quarter of 2020. [pages 24–25] Lastly, Arterial Street Preservation Fund revenues totaled $2.7 million through September 2021, while expenditures totaled $3.5 million versus $1.2M through last September. [pages 26– 27] Enterprise Funds: The City’s enterprise funds account for operations with revenues primarily provided from user fees, charges or contracts for services. The Water Fund ended the third quarter of 2021 with operating income of $4.3 million, approximately $206,000 below the same period last year. [page 29] The Sewer Fund had operating income of $894,000 through September 2021 versus $1.5 million in the same period of 2020. Increased consumption revenues were offset by interfund utility taxes and increased personnel costs, leading to a decrease in operating income from 2020. [page 30] Through September 2021 the Stormwater Fund had operating income of $1.8 million compared to $2.6 million through September of 2020; this variance is largely due to increased interfund utility taxes, personnel costs, fleet and support costs. [page 30] The Solid Waste Fund had an operating loss of $221,000 through the third quarter compared to operating income of $199,000 in the same period last year; higher service revenues were offset by increased payments to the City’s primary solid waste vendor and interfund utility taxes. [pages 30-32] The Airport Fund experienced operating income of $254,000 through September 2021, compared to $405,000 in the same period last year. This variance is largely attributable to fuel inventory purchases, as well as personnel, fleet, and repair and maintenance costs. [page 32] The Cemetery Fund had operating income of $484,000 through September 2021, compared with operating income of $154,000 in the same period last year. This increase in largely attributable to increased sales revenues. [pages 32-33] 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 in 2021. [page 33] 5 Page 75 of 108 Quarterly Financial Report Through September 2021 6 General Fund Revenues The combined total of property, sales/use, utility, gambling, and admissions taxes provides over 70% of all resources supporting general governmental activities. The following section provides additional information on these sources. Property Tax collections through Q3-2021 totaled $12.9 million as compared to a YTD budget of $12.7 million. 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. The COVID-19 pandemic had minimal, if any, impact to property tax revenues. Retail Sales Tax collections through Q3-2021 totaled $15.9 million, representing taxes remitted to the City of Auburn based on sales from November 2020 through July 2021. Due to the global pandemic, the 2021 retail sales tax revenue projection was reduced to account for expected business closures and/or occupancy restrictions combined with a slower economy due to higher than usual unemployment rates. However, due to stronger than anticipated sales in several categories including retail trade, automotive and services, sales tax revenues collected through Q3-2021 were $3.5 million, or 28.8%, higher than budget. $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 2021 Budget 2021 YTD Actual 2020 Actual 6 Page 76 of 108 Quarterly Financial Report Through September 2021 7 Note: The increase in sales tax revenue from 2018 to 2019 was primarily due to a policy change whereby sales tax on construction revenue stays in the General Fund starting in 2019. Of the year-over-year increase in sales tax revenue depicted in the graphic above from 2018 to 2019, $2.2 million of the $2.9 million increase was due to this policy change. $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 2021 Budget 2021 YTD Actual 2020 Actual $14.6 $14.9 $15.9 $18.8 $18.9 $15.9 $0.0 $2.0 $4.0 $6.0 $8.0 $10.0 $12.0 $14.0 $16.0 $18.0 $20.0 $22.0 2016 2017 2018 2019 2020 2021 YTDMillionsRetail Sales & Use Tax Actuals 7 Page 77 of 108 Quarterly Financial Report Through September 2021 8 The following table breaks out the City’s retail sales taxes by major business sector. Citywide retail sales tax revenues collected through Q3-2021 were $2.3 million, or 16.7%, more than collections through Q3-2020. The business sectors that realized the greatest revenue increases year-over-year were in retail trade and automotive. 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). As noted on page 3 of this report, Council increased the City utility tax rate from 7.0% to 10.0% effective this year. While 1.0% of this tax revenue continues to support the Arterial Street Preservation Fund, this change increases General Fund tax revenues for Water, Sewer, Storm and Solid Waste services from the previous 6.0% to 9.0%. This change is expected to provide an additional $2.2 million in General Fund revenues in 2021. 2020 2021 Component Group Actual Actual Amount Construction 2,138,487$ 2,205,248$ 66,761$ 3.1 % Manufacturing 286,376 266,821 (19,555) (6.8)% Transportation & Warehousing 121,106 275,220 154,114 127.3 % Wholesale Trade 986,543 1,068,765 82,222 8.3 % Automotive 2,746,612 3,419,344 672,732 24.5 % Retail Trade 4,039,685 4,837,848 798,163 19.8 % Services 3,136,003 3,611,899 475,897 15.2 % Miscellaneous 223,631 281,436 57,805 25.8 % YTD Total 13,678,441$ 15,966,580$ 2,288,139$ 16.7 % Comparison of Retail Sales Tax Collections by Group Through September Change from 2020 Percentage 8 Page 78 of 108 Quarterly Financial Report Through September 2021 9 $0.0 $2.0 $4.0 $6.0 $8.0 $10.0 $12.0 $14.0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecMillionsUtility Tax 2021 Budget 2021 YTD Actual 2020 Actual $10.0 $10.2 $9.9 $9.6 $11.4 $9.2 $0.0 $2.0 $4.0 $6.0 $8.0 $10.0 $12.0 $14.0 2016 2017 2018 2019 2020 2021 YTDMillionsUtility Tax Revenues Actuals 9 Page 79 of 108 Quarterly Financial Report Through September 2021 10 The table below demonstrates the various utility tax revenues and show actuals compared to budget. An Admission Tax of 5.0% is placed on charges for general admission, season tickets, cover charges, etc. Admission tax revenues collected through September 2021 totaled $98,000 and were $142,000 unfavorable to budget. Due to COVID-19, some entertainment style businesses had not reopened until the second quarter of 2021. The primary remitter of admission tax to the City of Auburn is the Auburn Regal Cinema at the Outlet Collection mall. The theater was closed during the first quarter of this year, and remitted Q2 taxes in the third quarter although the remittance was approximately 20% of normal revenues. Overall, nearly 70% of the admissions tax revenue collected year-to-date were admission taxes collected from the Auburn Golf Course. 2020 2021 2021 Utility Tax Type YTD Actual YTD Budget YTD Actual Amount Amount City Interfund Utility Taxes 3,413,691$ 4,822,200$ 4,715,241$ $ 1,301,550 38.1 % $ (106,959)(2.2)% Electric 3,242,922 2,899,700 2,858,500 (384,422) (11.9)%(41,200) (1.4)% Natural Gas 1,114,296 956,200 959,281 (155,015) (13.9)%3,081 0.3 % Telephone 831,771 582,700 529,685 (302,085) (36.3)%(53,015) (9.1)% Solid Waste (external)166,230 84,420 170,348 4,117 2.5 %85,928 101.8 % YTD Total 8,768,910$ 9,345,220$ 9,233,055$ $ 464,145 5.3 % $ (112,165)(1.2)% Through September 2021 Utility Tax by Type 2021 vs. 2020 Actual 2021 vs. Budget Percentage Percentage $0.0 $100.0 $200.0 $300.0 $400.0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecThousandsAdmission Tax 2021 Budget 2021 Actual 2020 Actual 10 Page 80 of 108 Quarterly Financial Report Through September 2021 11 Gambling Tax applies to all card games, punch board games, pull tabs, bingo games, raffles and amusement games played within City limits. Due to COVID-19 occupancy limitations, some of these establishments had not opened up for business until the later part of Q1-2021 and many opened at a reduced capacity. While capacity limitations were lifted effective June 30, 2021, the effects on these entertainment style activities continue to be evident due to reduced receipts compared to normal levels. Licenses and Permits include business licenses, building permits, plumbing, electric and other licenses and permit fees. Building permit fees and business licenses make up approximately 70% of the annual budgeted revenue in this category. The City charges an annual fee of $100 for a Business License for each business that is located within the City. The City typically sends out the renewals for the following year around December of each year. Therefore, the majority of these revenues are collected in December for the following year or in January in the current year. Business license revenues collected through Q3- 2021 totaled $139,000 and were $15,000, or 9.5%, unfavorable to budget. $0.0 $100.0 $200.0 $300.0 $400.0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecThousandsGambling Tax 2021 Budget 2021 YTD Actual 2020 Actual 11 Page 81 of 108 Quarterly Financial Report Through September 2021 12 Building Permit revenues collected through September 2021 totaled $1.1 million and were $585,000 favorable to budget. A total of 397 building permits were issued through Q3-2021 compared to 371 through Q3-2020, representing a 7.0% increase. Of the building permit revenues collected through September, 62% were attributable to commercial projects and the remaining 38% were predominately single family housing permits. Major projects providing building permit revenues in the third quarter of 2021 include permits for Prologis and Pepsi and several single family houses in the North Ridgeview Estates, Aston Park and Forest Glen developments. $0 $50 $100 $150 $200 $250 $300 $350 $400 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecThousandsBusiness Licenses 2021 Budget 2021 YTD Actual 2020 Actual $225 $163 $353 $336 $354 $139 $0 $50 $100 $150 $200 $250 $300 $350 $400 2016 2017 2018 2019 2020 2021 YTDThousandsBusiness License Revenues Actuals 12 Page 82 of 108 Quarterly Financial Report Through September 2021 13 $0.0 $0.2 $0.4 $0.6 $0.8 $1.0 $1.2 $1.4 $1.6 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecMillionsBuilding Permits 2021 Budget 2021 Actual 2020 Actual $2.0 $1.2 $0.9 $1.2 $0.8 $1.1 $0.0 $0.5 $1.0 $1.5 $2.0 $2.5 2016 2017 2018 2019 2020 2021 YTDMillionsBuilding Permits Actuals 13 Page 83 of 108 Quarterly Financial Report Through September 2021 14 Intergovernmental revenues include grants and stimulus monies (direct and indirect federal, state and local), revenue from the Muckleshoot Indian Tribe (MIT) compact as well as state shared revenues. Collections through Q3-2021 totaled $4.8 million and were $725,000 favorable to budget expectations. Most of the favorable variance to budget was due primarily to the unbudgeted receipt of $331,000 of one-time Federal monies which were receipted in July and are to be used for police reform as well as the unbudgeted receipt of $250,000 in September of Streamlined Sales Tax Mitigation monies. Note: When comparing Q2-2021 intergovernmental revenues to Q3-2021 intergovernmental revenues, the $7.4 million receipted in May 2021 for the American Rescue Plan Act (ARPA) stimulus funds and reported in the Q2 financial report has been removed from this report. Those monies were moved from the General Fund into its own fund in order to better monitor the ARPA spending plan, which was presented to Council in September via Ordinance No. 6832. 2020 2021 2021 Revenue YTD Actual YTD Budget YTD Actual Amount Amount Federal Grants 272,782$ 58,540$ 50,003$ $ (222,779)(81.7)% $ (8,537)(14.6)% State Grants 140,207 57,400 78,512 (61,695) (44.0)%21,112 36.8 % Interlocal Grants 205,373 235,680 136,134 (69,239) 0.0 %(99,546) (42.2)% Muckleshoot Casino Services 1,020,419 693,750 771,994 (248,425) (24.3)%78,244 11.3 % One-Time Allocation (SB 5092)0 0 331,542 331,542 N/A %331,542 N/A % State Shared Revenues: Streamlined Sales Tax 494,830 1,000,000 1,250,198 755,368 152.7 %250,198 N/A % Motor Vehicle Fuel Tax 1,051,874 754,800 793,742 (258,132) (24.5)%38,942 5.2 % Criminal Justice - High Crime 168,992 159,150 182,020 13,028 7.7 %22,870 14.4 % Criminal Justice - Population 18,997 19,800 19,993 996 5.2 %193 1.0 % Criminal Justice - Special Prog.68,053 72,400 71,238 3,185 4.7 %(1,162) (1.6)% Marijuana Excise Tax 130,716 137,700 135,905 5,189 4.0 %(1,795) (1.3)% State DUI 8,619 8,850 9,922 1,303 15.1 %1,072 12.1 % Fire Insurance Tax 85,819 87,500 98,371 12,552 14.6 %10,871 12.4 % Liquor Excise 371,283 335,160 418,082 46,799 12.6 %82,922 24.7 % Liquor Profit 491,980 487,500 485,614 (6,366) (1.3)%(1,886) (0.4)% Total State Shared:2,891,163 3,062,860 3,465,084 573,921 19.9 %402,224 13.1 % YTD Total 4,529,943$ 4,108,230$ 4,833,268$ 303,325$ 6.7 %725,038$ 17.6 % Through September 2021 Intergovernmental Revenues (Grants, Entitlements & Services) 2021 vs. 2020 Actual 2021 vs. Budget % Change % Change 14 Page 84 of 108 Quarterly Financial Report Through September 2021 15 Charges for Services consist of general governmental service charges, public safety charges, development service fees, and culture and recreation fees. Total charges for services collected through September 2021 totaled $6.7 million and were $818,000, or 14.0%, more than budgeted. The General Government revenue category primarily includes the interfund assessment for the salary and benefit costs for support departments (Finance, Human Resources and the Legal Department). Salary and benefit costs for these support departments are charged to the respective General Fund home department and a portion of those costs are recouped from other funds via interfund charges. General Government revenues also include revenues for passport services, reimbursement from cities participating in the South King Housing and Homelessness Partners (SKHHP), as well as transportation projects. The majority of the unfavorable variance to budget in the general government category through Q3-2021 was primarily due to a transportation project that was discontinued and won’t result in revenues this year. $5.7 $6.1 $6.3 $6.0 $10.2 $4.8 $0 $2 $4 $6 $8 $10 $12 2016 2017 2018 2019 2020 2021 YTDMillionsIntergovernmental Revenues (Grants, Entitlements & Services) Actuals 2020 2021 2021 Revenue YTD Actual YTD Budget YTD Actual Amount Amount General Government 2,234,136$ 2,605,545$ 2,486,324$ $ 252,189 11.3 % $ (119,221)(4.6)% Public Safety 704,263 697,425 891,517 187,254 26.6 %194,092 27.8 % Development Services 754,150 699,800 1,273,177 519,027 68.8 %573,377 81.9 % Culture & Recreation 1,332,318 1,857,200 2,026,882 694,564 52.1 %169,682 9.1 % YTD Total 5,024,867$ 5,859,970$ 6,677,900$ 1,653,034$ 32.9 % $ 817,930 14.0 % Through September 2021 Charges for Services by Type 2021 vs. 2020 Actual 2021 vs. Budget Percentage Percentage 15 Page 85 of 108 Quarterly Financial Report Through September 2021 16 Public safety revenues mostly consist of revenues for law enforcement services, which are extra duty security services whereby police officers are contracted for and reimbursement is made by the hiring agency. This category 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 Q3-2021 totaled $892,000 and were $194,000 favorable to budget primarily due to stronger than anticipated requests for extra duty security services. Development services fee collections consist primarily of plan check fees, facility extension charges, and zoning and subdivision fees. Through Q3-2021, development service fees collected totaled $1.3 million and were $573,000 favorable to budget expectations. This variance was seen primarily in plan check revenues which generated $699,000 in revenues through September 2021 and compare to $320,000 collected through September 2020. Plan check revenues in Q3-2021 included plan review revenues for Prologis, Boeing, and numerous other commercial and residential projects including North Ridgeview Estates and the Aston Park housing development. The majority of culture and recreation revenues are derived from greens fees and pro shop sales at the Auburn Golf Course, recreational classes, ticket sales at the Auburn Avenue Theater, senior programs, and special events. Due to COVID-19, some of these activities continued to be modified through Q3-2021. In addition, due to the fire in July of the mixed use building on Main Street which affected the Auburn Avenue Theatre, the summer performances were impacted so ticket prices were greatly reduced. Through Q3-2021, 75% of the $2.0 million in culture and recreation revenues collected were from greens fees and pro shop sales at the Auburn Golf Course. $1.0 $0.9 $0.9 $1.1 $1.0 $1.3 $0.0 $0.2 $0.4 $0.6 $0.8 $1.0 $1.2 $1.4 $1.6 2016 2017 2018 2019 2020 2021 YTDMillionsDevelopment Service Fees Actuals 16 Page 86 of 108 Quarterly Financial Report Through September 2021 17 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 Q3-2021 totaled $336,000 compared to a budget of $540,000, and were 37.8% below budget expectations primarily due to lower-than-budgeted collections in civil infraction penalties and parking infractions. $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 $2.8 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecMillionsCulture & Recreation 2021 Budget 2021 YTD Actual 2020 Actual 2020 2021 2021 Month YTD Actual YTD Budget YTD Actual Amount Amount Civil Penalties 21,857$ 18,900$ 19,747$ $ (2,110)(9.7)% $ 847 4.5 % Civil Infraction Penalties 205,250 315,500 160,925 (44,325) (21.6)%(154,575) (49.0)% Redflex Photo Enforcement 1,182 0 2,410 1,229 104.0 %2,410 N/A % Parking Infractions 54,982 93,200 47,864 (7,118) (12.9)%(45,336) (48.6)% Criminal Traffic Misdemeanor 15,530 31,200 29,462 13,933 89.7 %(1,738) (5.6)% Criminal Non-Traffic Fines 17,773 24,300 15,599 (2,174) (12.2)%(8,701) (35.8)% Criminal Costs 14,725 9,400 19,378 4,652 31.6 %9,978 106.1 % Non-Court Fines & Penalties 144,220 47,400 40,374 (103,846) (72.0)%(7,026) (14.8)% YTD Total 475,518$ 539,900$ 335,759$ $ (139,760)(29.4)% $ (204,141)(37.8)% Through September 2021 Fines & Penalties by Type 2021 vs. 2020 Actual 2021 vs. Budget Percentage Percentage 17 Page 87 of 108 Quarterly Financial Report Through September 2021 18 $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 2021 Budget 2021 YTD Actual 2020 Actual $0.9 $0.9 $0.9 $0.9 $0.6 $0.3 $0.0 $0.2 $0.4 $0.6 $0.8 $1.0 $1.2 2016 2017 2018 2019 2020 2021 YTDMillionsFines & Penalties Actuals 18 Page 88 of 108 Quarterly Financial Report Through September 2021 19 Miscellaneous Revenues consist of investment earnings, income from facility rentals, revenue collected for golf cart rentals at the Auburn Golf Course, contributions and donations, and other income including the quarterly purchasing card (P-card) rebate monies. Revenues collected through Q3-2021 in this category totaled $1.0 million and were $55,000 favorable to budget. The majority of the favorable variance to budget was in the rents and leases category. The most predominant cause of the favorable variance to budget in the rents and leases category is due to increased revenues collected for golf cart rentals. Average revenues collected through the third quarter for golf cart rentals before COVID have been approximately $230,000; actuals collected through September 2021 were $295,000. 2020 2021 2021 Month YTD Actual YTD Budget YTD Actual Amount Amount Interest & Investments 377,313$ 104,100$ 68,436$ (308,877)$ (81.9)%(35,664)$ (34.3)% Rents & Leases 386,007 649,100 738,100 352,093 91.2 %89,000 13.7 % Contributions & Donations 28,876 21,000 12,648 (16,228)(56.2)%(8,352) (39.8)% Other Miscellaneous Revenue 171,276 186,277 196,203 24,928 14.6 %9,927 5.3 % YTD Total 963,472$ 960,477$ 1,015,387$ 51,915$ 5.4 %54,911$ 5.7 % Miscellaneous Revenues by Type Through September 2021 2021 vs. 2020 2021 vs. Budget Percentage Percentage $1.2 $1.5 $1.8 $1.8 $1.2 $1.0 $0.0 $0.5 $1.0 $1.5 $2.0 2016 2017 2018 2019 2020 2021 YTDMillionsMiscellaneous Revenues Actuals 19 Page 89 of 108 Quarterly Financial Report Through September 2021 20 Real Estate Excise Tax (REET) revenues are taxes on the sale of both commercial properties and single-family residences, and are receipted into the Capital Improvement Projects Fund and used for governmental capital projects. REET revenues collected through Q3-2021 totaled $4.3 million, exceeding budget expectations by $2.8 million. Sales activity in the third quarter of 2021 included the sale of numerous commercial businesses such as a large warehouse on West Valley highway, a hotel, two strip malls, a large office complex, and numerous single family homes. 2020 2021 2021 Month Actual Budget Actual Amount Amount Jan 214,936$ 162,000$ 328,140$ 113,204$ 52.7 %166,140$ 102.6 % Feb 455,986 162,000 244,189 (211,797) (46.4)%82,189 50.7 % Mar 214,029 162,000 423,532 209,502 97.9 %261,532 161.4 % Apr 273,949 162,000 385,966 112,017 40.9 %223,966 138.3 % May 245,815 162,000 339,074 93,259 37.9 %177,074 109.3 % Jun 288,495 162,000 447,063 158,568 55.0 %285,063 176.0 % Jul 392,753 162,000 563,422 170,669 43.5 %401,422 247.8 % Aug 368,252 162,000 585,227 216,975 58.9 %423,227 261.3 % Sep 346,819 162,000 946,209 599,390 172.8 %784,209 484.1 % Oct 444,623 162,000 #N/A #N/A #N/A %#N/A #N/A % Nov 439,428 162,000 #N/A #N/A #N/A %#N/A #N/A % Dec 554,308 162,500 #N/A #N/A #N/A %#N/A #N/A % YTD Total 2,801,035$ 1,458,000$ 4,262,823$ 1,461,788$ 52.2 %2,804,823$ 192.4 % Real Estate Excise Tax Revenues September 2021 2021 vs. 2020 2021 vs. Budget Percentage Percentage $0.0 $0.5 $1.0 $1.5 $2.0 $2.5 $3.0 $3.5 $4.0 $4.5 $5.0 $5.5 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecMillionsReal Estate Excise Tax 2021 Budget 2021 YTD Actual 2020 Actual 20 Page 90 of 108 Quarterly Financial Report Through September 2021 21 $4.3 $3.6 $3.8 $5.2 $4.2 $4.3 $0.0 $1.0 $2.0 $3.0 $4.0 $5.0 $6.0 2016 2017 2018 2019 2020 2021 YTDMillionsReal Estate Excise Tax Revenues Actuals 21 Page 91 of 108 Quarterly Financial Report Through September 2021 22 Street Funds This section provides a financial overview of the City’s three street funds for the period ending September 30, 2021. The City’s street funds are 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 September 30, 2021 there were 19 separate street projects budgeted in this fund. As of September 2021, revenues collected totaled $2.2 million as compared to collections of $1.4 million through September 2020. Total expenditures through September were $2.7 million compared to $1.3 million in the same period last year. Variances in revenues and expenditures are largely due to the timing of capital expenditures and any subsequent reimbursement via grants and/or operating transfers. Expenditure timing is generally determined by the current phase of each individual capital project; expenditures tend to increase as projects move from design phase into construction. Fund 102 - Arterial Street 2020 Summary of Sources and Uses 2021 2021 YTD 2021 YTD 2020 YTD Report Period: September 2021 Budget Budget Actual Actual Amount Revenues Federal Grants 3,713,508$ 2,112,841$ 846,281$ 130,624$ (1,266,560)$ (59.9)% State And Local Grants 419,980 36,719 30,571 - (6,148) (16.7)% Motor Vehicle Fuel and Multimodal Taxes 620,000 465,000 421,949 83,551 (43,051) (9.3)% Miscellaneous Revenue 700,000 455,000 211,300 14,469 (243,700) (53.6)% Operating Transfer In 3,196,915 2,199,267 649,341 1,147,876 (1,549,926) (70.5)% Investment Income 6,200 5,562 849 7,660 (4,713) (84.7)% Total Revenues 8,656,603$ 5,274,389$ 2,160,290$ 1,384,180$ (3,114,099)$ (59.0)% Expenditures Salary and Benefits 350,000$ 248,770$ 415,341$ 384,691$ (166,571)$ (67.0)% Capital Outlay 9,577,598 5,406,610 1,976,769 535,036 3,429,841 63.4 % Subtotal - Capital Project Expenditures 9,927,598 5,655,379 2,392,110 919,728 3,263,270 57.7 % Services and Charges 180,000 100,165 85,943 139,247 14,223 14.2 % Interfund Payments for Services 69,050 51,788 51,788 60,075 (0) (0.0)% Debt Service Principal and Interest 206,900 206,900 206,733 207,428 167 0.1 % Operating Transfer Out - - - - - Total Expenditures 10,383,548$ 6,014,232$ 2,736,573$ 1,326,478$ 3,277,659$ 54.5 % Net Change in Fund Balance (1,726,945)$ (739,843)$ (576,283)$ 57,702$ 163,561$ 22.1 % Beg. Fund Balance, January 2021 2,284,075$ Net Change in Fund Balance, September 2021 (576,283) Ending Fund Balance, September 2021 1,707,792$ 2021 Budgeted Ending Fund Balance 557,130$ 2021 2021 YTD Budget vs. Actual Favorable (Unfavorable) Percentage 22 Page 92 of 108 Quarterly Financial Report Through September 2021 23 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 2021 portion of each project’s budget and year-to-date expenditures. 23 Page 93 of 108 Quarterly Financial Report Through September 2021 24 Fund 103 – Local Street Fund The Local Street Fund is a special revenue fund used for local street repair. The fund is currently funded by interfund transfers on a project-reimbursement basis; in 2019 and 2020, it was funded at a specific annual amount by real estate excise tax (REET 2). Expenditures through September 2021 were $522,000 as compared to expenditures of $1.0 million through the third quarter of 2020. Highlighted in the table below and shown in the following graph are the fund’s total expenditures related to capital projects. Local Street F103 Fund 103 - Local Street Fund 2020 Summary of Sources and Uses 2021 2021 YTD 2021 YTD 2020 YTD Report Period: September 2021 Budget Budget Actual Actual Amount Revenues Operating Transfer In 2,350,000 1,414,180 651,819$ 1,462,500 (762,361) (53.9)% Interest Earnings 10,600 9,620 2,591$ 10,301 (7,029) (73.1)% Total Revenues 2,360,600$ 1,423,800$ 654,410$ 1,472,801$ (769,390)$ (54.0)% Expenditures Capital Salary and Benefits 235,000 168,436 78,718 98,155 89,718 53.3 % Capital Outlay 3,372,269 1,846,381 433,498 884,929 1,412,883 76.5 % Subtotal - Capital Project Expenditures 3,607,269 2,014,817 512,216 983,084 1,502,602 74.6 % Admin Salary and Benefits - - - 14,722 -$ Admin Services and Charges 700 646 - 361 646 100.0 % Interfund Payments for Services 13,250 9,938 9,938 11,700 (0) (0.0)% Total Expenditures 3,621,219$ 2,025,401$ 522,153$ 1,009,866$ 1,503,247$ 74.2 % Net Change in Fund Balance (1,260,619)$ (601,600)$ 132,257$ 462,935$ 733,857$ 122.0 % Beg. Fund Balance, January 2021 3,288,572$ Net Change in Fund Balance, September 2021 132,257 Ending Fund Balance, September 2021 3,420,829$ 2021 Budgeted Ending Fund Balance 2,027,953$ 2021 2021 YTD Budget vs. Actual Favorable (Unfavorable) Percentage 24 Page 94 of 108 Quarterly Financial Report Through September 2021 25 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 2021 portion of each project’s budget and year-to-date expenditures. 25 Page 95 of 108 Quarterly Financial Report Through September 2021 26 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. In 2020, due to COVID-19 impacts, the funding source was transfers-in of REET 2 revenues while the 1.0% utility tax was retained in the General Fund. Major projects budgeted within the Arterial Street Preservation Fund in 2021 include 4th Street SE Preservation, Lakeland Hills Way Preservation, and AWN Preservation Phase 2 (8th Street SE to 22nd). Through September 2021, revenues totaled $2.7 million, which is significantly higher than the same period in 2020. This is primarily due to the change in funding source, which resulted in artificially low revenues in the fund through the third quarter of 2020. Revenues and expenditures also fluctuate due to the timing associated with construction projects and their subsequent cost reimbursements from grants and transfers-in. Expenditures through September 2021 totaled $3.5 million as compared to $1.2 million through September 2020. Historically, the majority of this fund’s expenditures occur in the second half of each year due to the weather sensitivity of pavement construction (this work needs to be done primarily in the summer and early fall). Highlighted in the table below and shown in the following graph are the fund’s total expenditures related to capital projects. Fund 105 - Arterial Street Preservation 2020 Summary of Sources and Uses 2021 2021 YTD 2021 YTD 2020 YTD Report Period: September 2021 Budget Budget Actual Actual Amount Revenues City Utility Tax 725,100$ 543,039$ 523,916$ 0$ (19,123)$ (3.5)% Electric Utility Tax 744,600 580,149 571,700 0 (8,449) (1.5)% Natural Gas Utility Tax 223,400 198,302 191,856 - (6,446) (3.3)% Cable TV Tax 175,400 131,606 143,719 (0) 12,113 9.2 % Telephone Utility Tax 153,100 117,120 105,937 0 (11,183) (9.5)% Garbage Utility Tax (External Haulers)18,800 13,884 28,391 - 14,507 104.5 % Grants 5,016,622 2,256,111 649,091 348,331 (1,607,020) (71.2)% Operating Transfer In 437,946 250,255 437,946 1,891,551 187,691 75.0 % Interest Earnings 12,400 9,300 2,146 7,297 (7,154) (76.9)% Total Revenues 7,507,368$ 4,099,766$ 2,654,703$ 2,247,179$ (1,445,063)$ (35.2)% Expenditures Salary and Benefits 188,000$ 143,246$ 389,366$ 412,922$ (246,120)$ (171.8)% Capital Outlay 9,143,141 4,792,618 3,006,641 772,074 1,785,977 37.3 % Subtotal - Capital Project Expenditures 9,331,141 4,935,864 3,396,007 1,184,996 1,539,857 31.2 % Supplies - - - - - Services and Charges 51,000 30,373 22,365 985 8,007 26.4 Operating Transfer Out 68,500 44,900 68,500 - (23,600) (52.6) Total Expenditures 9,450,641$ 5,011,137$ 3,486,872$ 1,185,980$ 1,524,265$ 30.4 % Net Change in Fund Balance (1,943,273)$ (911,371)$ (832,169)$ 1,061,199$ 79,202$ 8.7 % Beg. Fund Balance, January 2021 3,385,926$ Net Change in Fund Balance, September 2021 (832,169) Ending Fund Balance, September 2021 2,553,757$ 2021 Budgeted Ending Fund Balance 1,442,653$ 2021 2021 YTD Budget vs. Actual Favorable (Unfavorable) Percentage 26 Page 96 of 108 Quarterly Financial Report Through September 2021 27 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 2021 portion of each project’s budget and year-to-date expenditures. 27 Page 97 of 108 Quarterly Financial Report Through September 2021 28 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. Through September 2021, the City received $2.8 million in mitigation and impact revenues, largely driven by commercial transportation impact fees paid for by two large warehouses, with over $600k being received for one warehouse in September alone. Revenues through September exceeded annual budgeted revenues, while expenditures through September were minimal due to the timing of multiple capital projects funded by mitigation and/or impact fee revenues. Fund 124 - Mitigation Fees Summary of Sources and Uses Report Period Through:Ending Ending September 2021 Fund Balance Fund Balance Transportation Impact Fees 818,000$ 3,037,315$ 4,992,899$ 2,389,056$ 589,741$ 9,583,872$ Traffic Migitation Fees - 100,000 23,687 - - 137,806 Fire Impact Fees 148,300 550,000 147,189 120,452 550,000 150,682 Fire Mitigation Fees - - 81 - - 81 Parks Impact Fees 158,500 3,243,822 2,019,003 301,000 274,475 5,565,305 Parks Mitigation Fees - - 349,371 - - 186,352 School Impact Admin Fees 5,600 - 94,251 5,480 - 94,696 Wetland Mitigation Fees - 36,600 30,981 - - 72,872 Interest and Investment Income 87,160 - 87,160 11,545 - 11,545 Fees in Lieu of Improvements - - 27,020 - - 27,128 Permit Processing Fees - 44,200 (44,200) - - - Total 1,217,560$ 7,011,937$ 7,727,442$ 2,827,533$ 1,414,216$ 15,830,339$ Beginning Fund Balance, January 2021 14,417,022$ Net Change in Fund Balance, September 2021 1,413,317 Estimated Ending Fund Balance, September 2021 15,830,339$ 2021 Budgeted Ending Fund Balance 7,727,442$ BUDGET YTD ACTUALS Revenues Expenditures Revenues Expenditures 28 Page 98 of 108 Quarterly Financial Report Through September 2021 29 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 September 2021 the Water Utility had operating income of $4.3 million (operating revenues less operating expenditures), approximately $206,000 below the same period last year. Water Fund operating revenues were $810,000 or 7.1% higher than 2020; the majority of this variance was due to stronger performance in water sales revenue, which was offset by lower interest and other earnings. Operating expenditures increased by $1.0 million mainly due to an increase of the City utility interfund tax rate from 7% to 10%, increased debt service payments, higher personnel costs, and increased interfund service charges. Billable water consumption through September 2021 totaled 2.3 million hundred cubic feet (ccf), an increase of 119,000 ccf (5.4%) over the same period last year. With the exception of manufacturing and wholesale, all customer classes saw an increase in consumption compared to last year. There is also a trend of decreased year-over-year consumption on a per account basis due largely to conservation efforts and appliance efficiency improvements, which are anticipated in the Utilities Comprehensive Plan. 29 Page 99 of 108 Quarterly Financial Report Through September 2021 30 Through September 2021, the Sewer Utility finished with operating income of $894,000 as compared to $1.5 million through September 2020. Operating revenues were up $245,000 or 3.8% from last year due to stronger performance in charges for City sewer service. Operating expenses were up $808,000 due to an increase in the City interfund utility tax rate, as well as increased personnel and interfund service costs. Year-to-date billable consumption by volume was up 66,000 ccf, or 5.9% from Q3-2020 due to increases in commercial consumption, which was previously impacted by severe COVID-19 mitigation efforts that have been relaxed (but not eliminated) in 2021. Through the third quarter of 2021, the Stormwater Utility had operating income of $1.8 million compared with $2.6 million in the same period last year. Operating revenues were up $93,000 compared to 2020 mainly due to charges for City storm service. As most Stormwater Utility charges are based on a flat rate, COVID-19 did not have a significant effect on service revenue. Operating expenditures in the Stormwater Utility were up $901,000 compared to the third quarter of 2020. This increase was mainly due to the interfund the utility tax rate increase, as well as increased personnel costs, fleet and support charges. Through September 2021, the Solid Waste Utility Fund experienced an operating loss of $221,000. In 2020, both revenues and expenditures were low compared to prior years, with 2021 returning to expected levels of service. Operating revenues have increased by $887,000 compared to the same period last year, while operating expenditures have increased by $1.3 million. The majority of both the revenue and expenditure increase is attributable to a higher volume of services provided compared to the previous year, resulting in increased service revenues and corresponding expenditures. In particular, the main contributors to the expenditure increase were payments to the City’s primary solid waste vendor and increased interfund utility taxes. Through September 2021, the City of Auburn’s solid waste services had been outsourced to Waste Management and to Republic Services, who managed the contract for the annexed areas. Beginning in October 2021, all of the City’s solid waste services will be handled by Waste Management based on a newly-signed contract. Through the third quarter of 2021, Waste Management serviced 15,535 customers (79% of customers) and Republic Services serviced 4,197 customers (21% of customers). The current mix of solid waste customer account types (rounded) is: • 89.6% Residential • 8.0% Commercial • 2.4% 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 September 2021, the total diversion rate was 27.3%, which represents a total of 14,400 tons of waste that was diverted from landfills. 30 Page 100 of 108 Quarterly Financial Report Through September 2021 31 2021 Tons Collected and Diversion Rates Of the total tonnage collected through September 2021, 34% was from residential customers, 16% from multifamily customers, and 50% from commercial customers, as shown below: 31 Page 101 of 108 Quarterly Financial Report Through September 2021 32 Through September 2021, the Airport Fund had operating income of $254,000 as compared with operating income of $405,000 through the third quarter of 2020. Operating revenues in the Airport Fund were $143,000 more than the same period last year, largely due to increased revenues from aviation fuel sales and property leases. Operating expenditures in the Airport Fund were $294,000 more than the same period of last year. Much of this variance consisted of fuel inventory expenses, but also included increased personnel costs, repairs and maintenance, and fleet costs. Through the third quarter of 2021, the Cemetery Fund realized net operating income of $484,000 as compared with operating income of $154,000 through September 2020. Total sales revenues were up $480,000, or 44.5%, from the third quarter of 2020 due to significant increases in lot sales, markers, and openings and closings. Operating expenditures were up $148,000 or 15.9% from last year due mostly to inventory and grounds maintenance purchases. 32 Page 102 of 108 Quarterly Financial Report Through September 2021 33 Internal Service Funds Operating expenditures within the Insurance Fund represent the premium cost pool that will be allocated monthly to other City funds over the course of the year. As a result, the expenditure balance gradually diminishes each month throughout the year. No significant variances are reported in the Workers’ Compensation, Facilities, Innovation & Technology, or Equipment Rental Funds. Contact Information This report is prepared by the Finance Department. Additional financial information can also be viewed at our website: http://www.auburnwa.gov/. For any questions about this report please contact Jamie Thomas at jdthomas@auburnwa.gov. 33 Page 103 of 108 Investment Purchase Book Maturity Yield to Type Date Value Date Maturity State Investment Pool Various 140,804,412$ Various 0.09% KeyBank Money Market Various 7,439,229 Various 0.01% Pacific Premier Bank Interest Acct Various 10,548,883 Various 0.09% US Treasury 08/12/2021 5,131,850 08/31/2024 3.80% US Treasury 9/23/2021 5,228,516 5/31/2024 2.90% FHLB 1/17/2020 5,168,350 12/9/2022 1.56% FHLB 9/28/2021 5,013,870 3/28/2025 4.70% FHLB 6/22/2021 5,215,230 3/8/2024 2.80% FHLMC 11/20/2020 5,004,250 11/6/2023 2.38% Total Cash & Investments 189,554,590$ 0.560% Investment Mix % of Total State Investment Pool 74.3%Current 6-month treasury rate 0.05% Key Bank Money Market 3.9%Current State Pool rate 0.09% Pacific Premier Bank Interest Acct 5.6%KeyBank Money Market 0.01% US Treasury 5.5%Pacific Premier Interest Acct 0.09% FHLB 8.1% FHLMC 2.6% 100.0% City of Auburn Investment Portfolio Summary September 30, 2021 Summary 34 Page 104 of 108 SALES TAX SUMMARY SEPTEMBER 2021 SALES TAX DISTRIBUTIONS (FOR JULY 2021 RETAIL ACTIVITY) 2020 Annual Total 2020 YTD 2021 YTD YTD 2020 Annual Total 2020 YTD 2021 YTD YTD NAICS CONSTRUCTION (Nov '19-Oct '20)(Nov '19-Jul '20)(Nov '20-Jul '21)% Diff NAICS AUTOMOTIVE (Nov '19-Oct '20)(Nov '19-Jul '20)(Nov '20-Jul '21)% Diff 236 Construction of Buildings 2,000,382 1,383,282 1,353,952 -2.1%441 Motor Vehicle and Parts Dealer 3,594,307 2,579,995 3,216,009 24.7% 237 Heavy and Civil Construction 184,377 135,787 144,856 6.7%447 Gasoline Stations 232,674 166,617 203,335 22.0% 238 Specialty Trade Contractors 883,406 619,417 706,440 14.0%TOTAL AUTOMOTIVE 3,826,981$ 2,746,612$ 3,419,344$ 24.5% TOTAL CONSTRUCTION 3,068,164$ 2,138,487$ 2,205,248$ 3.1%Overall Change from Previous Year 672,732$ Overall Change from Previous Year 66,761$ 2020 Annual Total 2020 YTD 2021 YTD YTD 2020 Annual Total 2020 YTD 2021 YTD YTD NAICS RETAIL TRADE (Nov '19-Oct '20)(Nov '19-Jul '20)(Nov '20-Jul '21)% Diff NAICS MANUFACTURING (Nov '19-Oct '20)(Nov '19-Jul '20)(Nov '20-Jul '21)% Diff 442 Furniture and Home Furnishings 209,308 142,528 207,364 45.5% 311 Food Manufacturing 10,332 7,013 7,171 2.3%443 Electronics and Appliances 300,343 218,692 246,979 12.9% 312 Beverage and Tobacco Products 11,872 8,764 10,149 15.8%444 Building Material and Garden 751,040 547,710 607,196 10.9% 313 Textile Mills 1,178 957 582 -39.2%445 Food and Beverage Stores 450,577 336,554 362,464 7.7% 314 Textile Product Mills 2,390 1,849 2,466 33.4%446 Health and Personal Care Store 348,418 262,298 294,294 12.2% 315 Apparel Manufacturing 1,301 876 1,430 63.2%448 Clothing and Accessories 872,671 636,756 828,431 30.1% 316 Leather and Allied Products 488 381 463 21.6%451 Sporting Goods, Hobby, Books 239,744 171,903 248,647 44.6% 321 Wood Product Manufacturing 14,670 11,001 13,912 26.5%452 General Merchandise Stores 878,021 673,093 707,556 5.1% 322 Paper Manufacturing 4,028 2,271 3,866 70.3%453 Miscellaneous Store Retailers 1,178,104 849,062 1,117,058 31.6% 323 Printing and Related Support 37,260 28,614 34,849 21.8%454 Nonstore Retailers 271,309 201,088 217,858 8.3% 324 Petroleum and Coal Products 1,404 1,386 7 -99.5%TOTAL RETAIL TRADE 5,499,535$ 4,039,685$ 4,837,848$ 19.8% 325 Chemical Manufacturing 10,595 8,441 8,565 1.5%Overall Change from Previous Year 798,163$ 326 Plastics and Rubber Products 7,322 5,161 5,421 5.0% 327 Nonmetallic Mineral Products 16,154 10,196 13,847 35.8% 331 Primary Metal Manufacturing 62,321 46,752 8,633 -81.5%2020 Annual Total 2020 YTD 2021 YTD YTD 332 Fabricated Metal Product Manuf 34,205 19,210 21,429 11.6%NAICS SERVICES (Nov '19-Oct '20)(Nov '19-Jul '20)(Nov '20-Jul '21)% Diff 333 Machinery Manufacturing 22,168 11,494 13,550 17.9%51*Information 684,732 514,800 566,247 10.0% 334 Computer and Electronic Product 8,232 6,548 11,952 82.5%52*Finance and Insurance 177,847 143,314 119,438 -16.7% 335 Electric Equipment, Appliances 8,276 8,044 804 -90.0%53*Real Estate, Rental, Leasing 368,873 279,484 330,260 18.2% 336 Transportation Equipment Man 92,399 76,082 74,368 -2.3%541 Professional, Scientific, Tech 394,150 282,543 a 356,560 b 26.2% 337 Furniture and Related Products 10,109 7,470 10,061 34.7%551 Company Management 66 34 34 -0.5% 339 Miscellaneous Manufacturing 32,935 23,866 23,298 -2.4%56*Admin. Supp., Remed Svcs 651,469 475,923 610,208 28.2% TOTAL MANUFACTURING 389,637$ 286,376$ 266,821$ -6.8%611 Educational Services 40,410 22,832 27,782 21.7% Overall Change from Previous Year (19,555)$ 62*Health Care Social Assistance 110,693 88,140 76,768 -12.9% 71*Arts and Entertainment 50,412 40,674 42,873 5.4% 72*Accommodation and Food Svcs 1,204,980 894,605 1,020,121 14.0% 2020 Annual Total 2020 YTD 2021 YTD YTD 81*Other Services 534,972 392,200 458,811 17.0% NAICS TRANSPORTATION AND WAREHOUSING (Nov '19-Oct '20)(Nov '19-Jul '20)(Nov '20-Jul '21)% Diff 92*Public Administration 1,620 1,454 2,798 92.4% 481 Air Transportation 0 0 0 N/A TOTAL SERVICES 4,220,223$ 3,136,003$ 3,611,899$ 15.2% 482 Rail Transportation 14,421 13,030 14,931 14.6%Overall Change from Previous Year 475,897$ 483 Water Transportation 0 0 0 N/A 484 Truck Transportation 22,499 17,779 20,569 15.7% 485 Transit and Ground Passengers 9 14 0 -96.7%2020 Annual Total 2020 YTD 2021 YTD YTD 488 Transportation Support 79,945 65,380 34,668 -47.0%NAICS MISCELLANEOUS (Nov '19-Oct '20)(Nov '19-Jul '20)(Nov '20-Jul '21)% Diff 491 Postal Service 676 526 576 9.6%000 Unknown 0 0 0 N/A 492 Couriers and Messengers 69,993 16,539 197,079 1091.6%111-115 Agriculture, Forestry, Fishing 5,367 4,217 5,908 40.1% 493 Warehousing and Storage 9,647 7,839 7,396 -5.6%211-221 Mining & Utilities 28,831 18,704 27,218 45.5% TOTAL TRANSPORTATION 197,189$ 121,106$ 275,220$ 127.3%999 Unclassifiable Establishments 273,689 200,710 248,310 23.7% Overall Change from Previous Year 154,114$ TOTAL SERVICES 307,887$ 223,631$ 281,436$ 25.8% Overall Change from Previous Year 57,805$ 2020 Annual Total 2020 YTD 2021 YTD YTD NAICS WHOLESALE TRADE (Nov '19-Oct '20)(Nov '19-Jul '20)(Nov '20-Jul '21)% Diff GRAND TOTAL 18,855,888$ 13,678,441$ 15,966,580$ 423 Wholesale Trade, Durable Goods 1,027,727 758,279 801,742 5.7%Overall Change from Previous Year 2,288,139$ 16.7% 424 Wholesale Trade, Nondurable 303,860 217,708 251,904 15.7% 425 Wholesale Electronic Markets 14,684 10,556 15,120 43.2%Total September 2021 Sales Tax Distributions 1,860,960$ TOTAL WHOLESALE 1,346,271$ 986,543$ 1,068,765$ 8.3%Dollar Change from 1 year ago 2,321$ g 82,222$ Percent Change from September 2020 0.1% Comparisons: September 2020 13,678,441 11,819,801 1,858,640$ Includes Adjustments in excess of +/- $10,000.September 2019 13,872,916 12,268,667 1,604,250$ a. WA State Department of Revenue adjustment to sales tax returns for July 2020 Reporting (adjustment: $18,706). b. WA State Department of Revenue adjustment to sales tax returns for July 2021 Reporting (adjustment: $42,412). 09/23/21 35Page 105 of 108 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 16,311,200 12,143,413 (4,167,787) 9,601,630 6,701,824 (2,899,806) 20,319,350 13,592,686 (6,726,664) 10,607,050 7,907,727 (2,699,323) Grants - - - - - - Interest Earnings 113,100 17,240 (95,860) 69,100 6,511 (62,589) 16,600 408 (16,192) 79,100 7,994 (71,106) Rents, Leases, Concessions, & Other 30,000 (1,236) (31,236) - 679 679 - - - - 1,204 1,204 TOTAL OPERATING REVENUES 16,454,300 12,159,416 (4,294,884) 9,670,730 6,709,013 (2,961,717) 20,335,950 13,593,094 (6,742,856) 10,686,150 7,916,925 (2,769,225) OPERATING EXPENSES Salaries & Wages 2,870,106 1,883,734 986,372 1,713,633 1,163,582 550,051 - - - 2,673,168 1,927,114 746,054 Benefits 1,505,901 938,601 567,300 895,705 570,789 324,916 - - - 1,403,108 948,909 454,199 Supplies 359,850 226,351 133,499 163,050 78,936 84,114 - - - 82,050 63,467 18,583 Other Service Charges 4,803,100 2,814,609 1,988,491 3,224,700 2,730,675 494,025 20,331,250 12,996,396 7,334,854 2,135,830 1,518,358 617,472 Intergovernmental Services (Less Transfers Out)- - - - - - Waste Management Payments Sewer Metro Services - - - Debt Service Interest 809,200 530,567 278,633 105,900 80,207 25,693 - - - 187,000 124,203 62,797 Interfund Operating Rentals & Supplies 1,937,400 1,460,149 477,251 1,578,600 1,190,720 387,880 - - - 2,096,200 1,577,105 519,095 TOTAL OPERATING EXPENSES 12,285,557 7,854,011 4,431,546 7,681,588 5,814,909 1,866,679 20,331,250 12,996,396 7,334,854 8,577,356 6,159,158 2,418,198 OPERATING REVENUES LESS EXPENSES BEFORE DEPRECIATION 4,168,743 4,305,406 136,663 1,989,142 894,104 (1,095,038) 4,700 596,698 591,998 2,108,794 1,757,767 (351,027) NON-OPERATING REVENUES Operating Transfers-in - - - Intergovernmental Loan 2,695,000 - 2,695,000 Other Non-Operating Revenues 22,500 Revenue Bond Proceeds - - - NON-OPERATING EXPENSES Transfer to Capital Subfund 12,243,610 3,262,626 8,980,984 - - - - - - Other Operating Transfers-out 3,420,686 102,331 3,318,355 405,667 84,105 321,563 467,167 148,991 318,176 Debt Service Principal 1,816,200 478,000 1,338,200 449,300 288,262 161,038 350,900 - 350,900 Net Change in Restricted Net Assets - (2,485) (2,485) - 28 28 - 118 118 Interfund Loan Repayment Other Non-Operating Expenses BEGINNING WORKING CAPITAL - January 1, 2021 23,629,056 23,629,056 - 8,716,107 8,716,107 - 2,837,722 2,837,722 - 10,106,359 10,106,359 - ENDING WORKING CAPITAL - September 30, 2021 13,012,303 24,093,990 11,081,687 9,850,282 9,260,316 (589,965) 2,842,422 3,434,420 591,998 11,397,086 11,715,017 317,931 NET CHANGE IN WORKING CAPITAL (see Note)(10,616,753) 464,934 11,081,687 1,134,175 544,210 (589,965) 4,700 596,698 591,998 1,290,727 1,608,658 317,931 CAPITAL FUND: CAPITAL REVENUES Interest Revenue 10,900 398 (10,502) 75,600 28,912 (46,688) 68,800 8,927 (59,873) Grants - - - 255,970 - (255,970) Contributions - - - - - - - - - Other Non-Operating Revenue - 226,110 226,110 - - - - - - Increase In Contributions - System Development 960,200 642,581 (317,619) 686,800 305,789 (381,011) 514,100 880,318 366,218 Interfund Revenues - - - - - - - - - Increase In Contributions - FAA - - - - - - - - - Proceeds of Debt Activity - - - - - - - - - Transfers In from Operating Sub-Fund 12,243,610 3,262,626 (8,980,984) - - - - - - Transfer In from Other Funds 2,990,020 - (2,990,020) - - - - - TOTAL CAPITAL REVENUES 16,204,730 4,131,714 (12,073,016) 762,400 334,701 (427,699) 838,870 889,245 50,375 CAPITAL EXPENSES Other Non-Operating Expense - - - - 420,142 (420,142) - - - Increase In Fixed Assets - Salaries 535,700 193,594 342,106 85,700 101,296 (15,596) 321,400 110,076 211,324 Increase In Fixed Assets - Benefits 214,300 90,645 123,655 34,300 46,279 (11,979) 128,600 49,801 78,799 Increase In Fixed Assets - Services 21,800 15 21,785 16,600 563 16,037 12,600 555 12,045 Increase In Fixed Assets - Site Improvements - 33,454 (33,454) - - - - - Increase In Fixed Assets - Equipment - - - - - - 150,000 - 150,000 Increase In Fixed Assets - Construction 15,761,929 3,280,553 12,481,376 5,878,154 760,254 5,117,900 4,912,411 404,678 4,507,733 Operating Transfers Out - - - - - - - - - TOTAL CAPITAL EXPENSES 16,533,729 3,598,262 12,935,467 6,014,754 1,328,534 4,686,220 5,525,011 565,111 4,959,900 BEGINNING WORKING CAPITAL - January 1, 2021 404,282 404,282 - 12,981,761 12,981,761 - 11,906,561 11,906,561 - 75,283 937,734 862,451 7,729,407 11,987,929 4,258,521 7,220,420 12,230,695 5,010,275 NET CHANGE IN WORKING CAPITAL (see Note)(328,999) 533,452 862,451 (5,252,354) (993,833) 4,258,521 (4,686,141) 324,134 5,010,275 Total Change in Working Capital (10,945,752) 998,386 11,944,138 (4,118,179) (449,623) 3,668,556 4,700 596,698 591,998 (3,395,414) 1,932,792 5,328,206 (*) Depreciation 4,083,600 2,906,471 2,415,000 1,791,625 - - 2,229,800 1,622,113 ENDING WORKING CAPITAL - September 30, 2021 Working Capital = Current Assets minus Current Liabilities (*) Debt service interest as shown represents actual cash outlay. Debt service principal represents actual expenditures; payments will be made as scheduled in December 2021. Through September 2021 WATER SEWER STORM OPERATING & CAPITAL FUNDS ENTERPRISE FUNDS SEWER METRO See note 36Page 106 of 108 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 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 Revenue Bond Proceeds NON-OPERATING EXPENSES Transfer to Capital Subfund Other Operating Transfers-out Debt Service Principal Net Change in Restricted Net Assets Interfund Loan Repayment Other Non-Operating Expenses BEGINNING WORKING CAPITAL - January 1, 2021 ENDING WORKING CAPITAL - September 30, 2021 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, 2021 NET CHANGE IN WORKING CAPITAL (see Note) Total Change in Working Capital (*) Depreciation ENDING WORKING CAPITAL - September 30, 2021 Working Capital = Current Assets minus Current Liabilities Through September 2021 OPERATING & CAPITAL FUNDS See note Budget YTD Actual Variance Budget YTD Actual Variance Budget YTD Actual Variance Budget YTD Actual Variance 464 464 465 465 466 466 - 16,669,900 12,261,203 (4,408,697) 1,458,000 1,238,347 (219,653) 1,199,000 1,559,774 360,774 - - - 60,000 511 (59,489) - 2,500 2,500 - - 45,600 3,845 (41,755) 12,800 976 (11,824) 4,600 995 (3,605) 12,800 576 (12,224) - - - 4,000 3,563 (437) - - - 16,775,500 12,265,559 (4,509,941) 1,474,800 1,245,386 (229,414) 1,203,600 1,560,769 357,169 12,800 576 (12,224) 68,100 53,387 14,713 249,471 192,495 56,976 495,692 370,366 125,326 - - - 12,900 8,423 4,477 119,725 89,903 29,822 271,278 192,750 78,528 175,000 79,760 95,240 48,200 4,709 43,491 362,000 355,493 6,507 261,700 281,811 (20,111) - - - 2,785,230 1,810,536 974,694 367,800 270,109 97,691 157,200 112,170 45,030 37,900 304,298 (266,398) - - - - - - - - - - - - 13,485,300 10,132,437 3,352,863 - - - 251,400 - 251,400 - - - - - - 632,100 477,290 154,810 110,600 82,950 27,650 158,950 119,899 39,051 - - - 17,031,830 12,486,783 4,545,047 1,460,996 990,950 470,046 1,344,820 1,076,996 267,824 212,900 384,058 (171,158) (256,330) (221,224) 35,106 13,804 254,436 240,632 (141,220) 483,774 624,994 (200,100) (383,482) (183,382) - - - - - - - - - 3,810,900 - 3,810,900 2,944,210 52,060 100,070 9,000 - - - - - - - - - 126,700 - 126,700 - - - - (1,517) (1,517) - - - - - - 5,927,917 5,927,917 - 1,003,962 1,003,962 - 1,072,389 1,072,389 - 1,789,615 1,789,615 - 5,671,587 5,706,693 35,106 1,757,756 1,207,855 (549,901) 831,099 1,547,162 716,064 1,589,515 1,406,133 (183,382) (256,330) (221,224) 35,106 753,794 203,893 (549,901) (241,290) 474,774 716,064 (200,100) (383,482) (183,382) 200 217 17 800 7 (793) - - - - - - - 1,899 1,899 - - - - - - - - - - - - - - - 13,500 54,544 41,044 - - - - - - - - - 2,944,210 52,060 (2,892,150) 100,070 9,000 (91,070) - - - - - - 2,957,910 108,720 (2,849,190) 100,870 9,007 (91,863) - - - - - - - - - - - - - - - - - - 100 5 95 100 0 100 - - - - - - - - 2,849,210 32,257 2,816,953 55,673 9,906 45,767 - - - - - - 2,849,310 32,262 2,817,048 55,773 9,906 45,867 161,340 161,340 - 8,185 8,185 - 269,940 237,798 (32,142) 53,282 7,285 (45,997) 108,600 76,458 (32,142) 45,097 (900) (45,997) (256,330) (221,224) 862,394 280,351 (582,043) (196,193) 473,874 670,067 (200,100) (383,482) (183,382) 20,000 - 434,700 487,326 32,200 28,535 - - Note: Includes September's Waste Management payment ($1,360,337), which will be made in October. (*) Debt service interest as shown represents actual cash outlay. Debt service principal represents actual expenditures; payments will be made as scheduled in December 2021. SOLID WASTE AIRPORT CEMETERY INSURANCE ENTERPRISE FUNDS INTERNAL SERVICE FUNDS See note below 37Page 107 of 108 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 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 Revenue Bond Proceeds NON-OPERATING EXPENSES Transfer to Capital Subfund Other Operating Transfers-out Debt Service Principal Net Change in Restricted Net Assets Interfund Loan Repayment Other Non-Operating Expenses BEGINNING WORKING CAPITAL - January 1, 2021 ENDING WORKING CAPITAL - September 30, 2021 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, 2021 NET CHANGE IN WORKING CAPITAL (see Note) Total Change in Working Capital (*) Depreciation ENDING WORKING CAPITAL - September 30, 2021 Working Capital = Current Assets minus Current Liabilities Through September 2021 OPERATING & CAPITAL FUNDS See note Budget YTD Actual Variance Budget YTD Actual Variance Budget YTD Actual Variance Budget YTD Actual Variance - - 568 568 560 560 1,104,400 828,562 (275,838) 3,705,100 2,750,603 (954,497) 6,653,150 4,982,764 (1,670,386) 2,290,400 1,717,800 (572,600) - - - - - - 20,000 2,662 (17,338) 8,000 1,257 (6,743) 21,600 2,441 (19,159) 16,400 1,884 (14,516) 15,000 6,129 (8,871) - - - - - - - 359,575 359,575 1,139,400 837,353 (302,047) 3,713,100 2,751,860 (961,240) 6,674,750 4,985,204 (1,689,546) 2,306,800 2,079,260 (227,540) - - - 819,855 555,332 264,523 2,209,075 1,572,765 636,310 693,061 500,229 192,832 250,000 134,329 115,671 452,466 294,122 158,344 1,099,145 696,974 402,171 366,776 260,144 106,632 - - - 140,200 69,894 70,306 420,650 182,562 238,088 1,153,840 577,011 576,829 461,100 256,456 204,644 1,643,300 1,052,485 590,815 3,007,800 2,345,917 661,883 570,050 279,882 290,168 - - - - - - - - - - - - - - - - - - - - - - - - 159,700 119,775 39,925 227,900 170,925 56,975 276,850 207,637 69,213 343,750 258,729 85,021 870,800 510,560 360,240 3,283,721 2,142,758 1,140,963 7,013,520 5,005,855 2,007,665 3,127,477 1,875,995 1,251,482 268,600 326,793 58,193 429,379 609,102 179,723 (338,770) (20,651) 318,119 (820,677) 203,264 1,023,941 235,600 35,982 (199,618) 50,000 36,454 (13,546) - - - 500,000 - 500,000 1,028,070 255,828 772,242 - - - 22,000 22,000 - - - - - - - - - - - - - - 49,840 (49,840) 2,440,125 2,440,125 - 1,134,025 1,134,025 - 2,864,659 2,864,659 - 2,622,570 2,622,570 - 2,708,725 2,766,918 58,193 770,934 1,523,280 752,347 2,075,889 2,880,462 804,573 1,779,893 2,803,834 1,023,941 268,600 326,793 58,193 (363,091) 389,256 752,347 (788,770) 15,803 804,573 (842,677) 181,264 1,023,941 4,700 573 (4,127) 45,600 3,567 (42,033) - - - - - - - - - - - - - - - - - - - - - - - - 1,975,900 1,481,925 (493,975) - - - - - - - - - - - - 500,000 - (500,000) - - - 75,000 72,338 (2,662) 1,354,820 117,366 (1,237,454) 579,700 72,912 (506,788) 3,376,320 1,602,858 (1,773,462) - - - - - - - - - 63,900 6,326 57,574 - - - 26,100 2,941 23,159 200 35 165 700 210 490 - - 792,985 89,830 703,155 3,916,690 1,230,828 2,685,862 25,000 31,850 (6,850) 1,140,000 - 1,140,000 - - - - - - 818,185 121,715 696,470 5,147,390 1,240,304 3,907,086 738,838 738,838 - 4,480,611 4,480,611 - 500,353 690,034 189,682 2,709,541 4,843,165 2,133,624 (238,485) (48,803) 189,682 (1,771,070) 362,554 2,133,624 268,600 326,793 58,193 (363,091) 389,256 752,347 (1,027,255) (33,001) 994,254 (2,613,747) 543,818 3,157,565 - - - - 236,900 345,613 1,453,200 928,302 INTERNAL SERVICE FUNDS INNOVATION & TECHNOLOGY EQUIPMENT RENTALWORKER'S COMPENSATION FACILITIES 38Page 108 of 108