HomeMy WebLinkAboutACFR Final 10.28.22
CITY OF AUBURN
WASHINGTON
ANNUAL COMPREHENSIVE
FINANCIAL REPORT
Fiscal Year January 1, 2021 through December 31, 2021
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Prepared by
City of Auburn Finance Department
Jamie Thomas, Finance Director
City of Auburn: 2021 Annual Comprehensive Financial Report Table of Contents
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ANNUAL COMPREHENSIVE FINANCIAL REPORT
For the Year Ended December 31, 2021
TABLE OF CONTENTS
I. INTRODUCTORY SECTION Page
Title Page
Table of Contents ................................................................................................................................... i
City Officials ........................................................................................................................................... 1
Organizational Chart ............................................................................................................................. 2
Letter of Transmittal .............................................................................................................................. 3
Certificate of Achievement ..................................................................................................................... 9
II. FINANCIAL SECTION
Auditor’s Report .................................................................................................................................... 11
Management’s Discussion and Analysis ................................................................................................... 15
Basic Financial Statements
Government-wide Financial Statements:
Statement of Net Position ............................................................................................................ 33
Statement of Activities ................................................................................................................. 34
Fund Financial Statements:
Governmental Funds
Balance Sheet ........................................................................................................................... 38
Reconciliation of Balance Sheet of Government Funds to the Statement of Net Position ............ 39
Statement of Revenues, Expenses and Changes in Fund Balances ............................................... 40
Reconciliation of the Statement of Revenues, Expenditures, and Changes in
Fund Balances of Government Funds to the Statement of Activities ......................................... 41
Statement of Revenues, Expenses and Changes in Fund Balances – Budget and Actual:
General Fund ........................................................................................................................ 42
Arterial Street Fund ............................................................................................................... 43
Proprietary Funds:
Statement of Net Position ......................................................................................................... 46
Statement of Revenues, Expenses, and Changes in Fund Net Position ........................................ 47
Statement of Cash Flows .......................................................................................................... 48
Fiduciary Funds:
Statement of Fiduciary Net Position .......................................................................................... 52
Statement of Changes in Fiduciary Net Position ........................................................................ 53
Notes to the Financial Statements ................................................................................................... 55
Required Supplemental Information
Schedule of Proportionate Share of the Net Pension Liability PERS 1 .......................................... 105
Schedule of Proportionate Share of the Net Pension Liability PERS 2/3 ...................................... 105
Schedule of Proportionate Share of the Net Pension Liability LEOFF 1 ....................................... 105
Schedule of Proportionate Share of the Net Pension Liability LEOFF 2 ....................................... 105
Schedule of Employer Contributions PERS 1 .............................................................................. 107
Schedule of Employer Contributions PERS 2/3 .......................................................................... 107
Schedule of Employer Contributions LEOFF 2 ........................................................................... 107
Schedule of Changes in Total Pension Liability and Related Ratios ............................................. 108
Schedule of Changes in Total OPEB Liability and Related Ratios ................................................ 109
City of Auburn: 2021 Annual Comprehensive Financial Report Table of Contents
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Page
Combining and Individual Fund Financial Statements and Schedules
Non-Major Government Funds:
Combining Balance Sheet ..........................................................................................................112
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances .......................113
Non-Major Special Revenue Funds:
Combining Balance Sheet ..........................................................................................................116
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances .......................118
Statement of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual:
Local Street Special Revenue Fund ......................................................................................... 120
Hotel/Motel Tax Special Revenue Fund .................................................................................121
Arterial Street Preservation Special Revenue Fund .................................................................. 122
Drug Forfeiture Special Revenue Fund ................................................................................... 123
American Rescue Plan Act (ARPA) Special Revenue Fund ....................................................... 124
Housing & Community Development Special Revenue Fund ................................................. 125
Recreation Trails Special Revenue Fund ................................................................................. 126
Business Improvement Area Special Revenue Fund ................................................................ 127
Cumulative Reserve Special Revenue Fund ............................................................................ 128
Mitigation Special Revenue Fund .......................................................................................... 129
Non-Major Debt Service Funds:
Combining Balance Sheet ......................................................................................................... 132
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances ...................... 133
Capital Project Funds:
Combining Balance Sheet ......................................................................................................... 136
Combining Statement of Revenues, Expenditures, and Changes in Fund Balance ....................... 137
Permanent Fund:
Balance Sheet........................................................................................................................... 140
Statement of Revenues, Expenditures and Changes in Fund Balance ...........................................141
Non-Major Enterprise Funds:
Combining Statement of Net Position ...................................................................................... 144
Combining Statement of Revenues, Expenses, and Changes in Net Position ............................... 145
Combining Statement of Cash Flows ........................................................................................ 146
Internal Service Funds:
Combining Statement of Net Position ...................................................................................... 150
Combining Statement of Revenues, Expenses, and Changes in Net Position ................................151
Combining Statement of Cash Flows ........................................................................................ 152
City of Auburn: 2021 Annual Comprehensive Financial Report Table of Contents
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III. STATISTICAL SECTION
Schedule Page
Net Position by Components ................................................................................................. 1 ............ 156
Changes in Net Positions ........................................................................................................ 2 ............ 157
Fund Balances, Government Funds......................................................................................... 3 ............ 158
Changes in Fund Balances, Government Funds ....................................................................... 4 ............ 159
Tax Revenues by Source, Government Funds ......................................................................... 5 ............ 160
Assessed Value by Type .......................................................................................................... 6 ............ 161
Property Tax Data ................................................................................................................. 7 ............ 162
Property Tax Levies and Collections ....................................................................................... 8 ............ 164
Principal Taxpayers – Property Taxes ..................................................................................... 9 ............ 165
Retail Tax Collections by Sector ........................................................................................... 10 ............ 166
Ratios of Outstanding Debt by Type ..................................................................................... 11 ............ 167
Computation of Legal Debt Margin ...................................................................................... 12 ............ 168
Legal Debt Margin Ratios ..................................................................................................... 13 ............ 168
Computation of Net Direct and Estimated Overlapping Debt ............................................... 14 ............ 169
Ratios of Net General Bonded Debt to Assessed Value .......................................................... 15 ............ 170
Pledged Revenue Bond Coverages ....................................................................................... 16 ............ 171
Population, Income and Housing Trends .............................................................................. 17 ............ 172
Major Employers ................................................................................................................. 18 ............ 173
Staffing Levels by Department .............................................................................................. 19 ............ 174
Operating Indicators by Department .................................................................................... 20 ............ 175
Capital Asset Indicators by Department ................................................................................ 21 ............ 176
Utility Customers by Customer Class .................................................................................... 22 ............ 177
City of Auburn: 2021 Annual Comprehensive Financial Report Table of Contents
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Mayor Nancy Backus
Serving as Mayor since 2014
City Council 2004-2014
AUBURN CITY COUNCIL
James Jeyaraj
Deputy Mayor Serving since 2019
Bob Baggett
Serving since 2016
Larry Brown
Serving since 2018
Kate Baldwin
Serving since 2021
Robyn Mulenga
Serving since 2019
Chris Stearns
Serving since 2019
Yolanda Trout-Manuel
Serving since 2014
DEPARTMENT DIRECTORS
Administration | Dana Hinman
City Attorney | Kendra Comeau
Community Development | Jeff Tate
Finance | Jamie Thomas
Human Resources | Candis Martinson
Innovation and Technology | David Travis
Parks, Arts & Recreation | Daryl Faber
Police | Mark Caillier
Public Works | Ingrid Gaub
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Director of Innovation and
Technology
David Travis
Parks, Arts and Recreation Director
Daryl Faber
City Attorney Kendra Comeau
Police Chief Mark Caillier
Finance Director Jamie Thomas
Director of Public Works
Ingrid Gaub
Director of Human Resources and
Risk Management
Candis Martinson
Director of Community Development Jeff Tate
Director of Administration Dana Hinman
Mayor
Nancy Backus
Citizens
City Council
Council Administrative
Assistant
Executive Assistant Outreach Program
Administrator
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October 28, 2022
Honorable Nancy Backus, Mayor
Members of the Auburn City Council
Citizens of the City of Auburn
25 W Main Street
Auburn, WA 98001
We are pleased to present the City’s Annual Comprehensive Financial Report for the year ended
December 31, 2021. We publish this financial statement in conformity with generally accepted accounting
principles (GAAP). It has been audited in accordance with generally accepted auditing standards by the
Washington State Auditor’s Office.
Therefore, we issue and transmit to you the City of Auburn’s Annual Comprehensive Financial Report for
the fiscal year ended December 31, 2021. This transmittal letter provides an overview of the report and
the financial condition of the City. It also provides insight into the history of the City and the economic
conditions affecting it, and describes the systems and controls employed by the Finance department.
The Annual Comprehensive Financial Report has several significant uses. First, it provides a general
overview of the City’s finances to the general public and taxpayers. Second, it is referenced by bond
buyers and rating agencies to evaluate the City’s fiscal stability and creditworthiness. Finally, the Annual
Comprehensive Financial Report is a series of financial statements that have been audited by the State
Auditor’s Office and provides assurances that assets are safeguarded, and funds are expended as they were
legally appropriated in the biennial budget.
I. INTRODUCTION
A. Management Representation
The Auburn Finance Department prepared the report and accepts complete responsibility for the
accuracy, completeness, and fairness of presentation of the information included. The data is believed to
be accurate in all material respects, and it is believed that all significant information necessary for an
understanding of the affairs and financial condition of the City has been disclosed. The report has been
prepared in conformance with generally accepted accounting principles and in conformance with financial
reporting standards issued by the Governmental Accounting Standards Board (GASB).
City management has developed and evaluated a comprehensive internal control structure that is
designed to protect the City’s assets from loss, theft, or misuse and to compile sufficient reliable
information for the preparation of the City’s financial statements in conformity with generally accepted
accounting principles. Because the cost of internal controls should not outweigh the benefits, the City’s
internal control structure is designed to provide reasonable, rather than absolute, assurance that the
financial statements will be free from material misstatement. As management, we attest that, to the best
of our knowledge and belief, this financial report is complete and reliable in all material aspects.
City of Auburn: 2021 ACFR Letter of Transmittal
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GAAP requires that management provide a narrative introduction, overview, and analysis to accompany
the basic financial statements in the form of Management’s Discussion and Analysis (MD&A). This letter
of transmittal is designed to complement the MD&A and should be read in conjunction with it. Auburn’s
MD&A can be found immediately following the independent auditor’s report.
B. Organization of the Report
The report is divided into three sections: the Introductory Section, the Financial Section, and the Statistical
Section. The Introductory Section contains the table of contents, a list of the City’s principal officials, an
organizational chart, this letter of transmittal, and the Certificate of Achievement for Excellence in
Financial Reporting from the Government Finance Officers’ Association of the United States and Canada
for the 2020 Annual Comprehensive Financial Report. The Financial Section contains the Washington
State Auditor’s Report, completed by the Washington State Auditor, Management’s Discussion and
Analysis, Government-Wide Financial Statements, the Fund Financial Statements, Notes to the Financial
Statements and Other Required Combining and Supplemental Information. The Statistical Section, which
is unaudited, contains a range of statistical tables and charts that present various financial, economic,
social, and demographic data about the City. This information depicts various trends that have affected
the fiscal condition of the City over the last ten years. The data presented in this section complies with
the requirements of GASB Statement No. 44, Economic Condition Reporting: The Statistical Section.
C. Reporting Entity
The City of Auburn was incorporated in 1891 and currently operates as a non-charter Code City under
the laws of the State of Washington. Code City status in Washington provides “home rule” authority to
cities. Auburn has a Mayor/Council form of government; the Mayor is elected and is the full-time Chief
Administrator. The seven-member City Council is elected at large, rather than by district. Members of
the City Council are responsible for establishing the general direction and policies for the City and for
providing the resources necessary to carry out those policies. As the City’s chief administrator, the Mayor
is responsible for carrying out the policy and direction set by the City Council. This includes the
enforcement of laws and ordinances, the execution of contracts and agreements, and maintenance of
peace and order in the city. The City is located primarily in southern King County and a small northeastern
portion of Pierce County. These are the two most populous counties in the State of Washington,
comprising over 41% of the state-wide population. The City is strategically located in relation to the
labor and consumer markets of the two largest cities in the area: Seattle in King County and Tacoma in
Pierce County. Auburn currently serves approximately 85,699 people within its incorporated limits.
The City provides a wide range of services, both beneficial and necessary to its residents as well as to the
adjacent area. These services include police protection; parks and recreational facilities that include a
senior center, gymnasium, community and teen center, golf course and museum; land use management
and development regulation; infrastructure construction and maintenance; water, sanitary sewage
collection, storm drainage, and solid waste services; a general aviation airport; and a municipal cemetery.
The City is a member/owner of Valley Communications providing emergency 911 services and South
Correctional Entity (SCORE) providing jail facilities. Both these organizations provide services to other
owner/member governments and other non-owner/member governments as well through interlocal
agreements.
City of Auburn: 2021 ACFR Letter of Transmittal
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II. ECONOMIC CONDITION
A. Summary of Local Economy
Auburn began as a small rural community founded on agriculture and the railroad, which maintained a
significant switching and repair facility. The City has grown significantly since World War II, both as a
residential community and as a commercial and industrial location. Auburn has become a significant area
for automobile sales and has also developed a substantial manufacturing and distribution base with the
largest employer being The Boeing Co., which employs approximately 3,600 people at its Auburn facility.
Boeing is a worldwide supplier of aircraft and related products. At the start of 2021, Auburn was
providing approximately 41,370 jobs with a unemployment rate of 3.4%. The COVID-19 pandemic led
to significant job losses and at the beginning of 2021 the unemployment rate had come down to 7.9%
from a high of 18% in April 2020. By the end of 2021 the unemployment rate had subsided to 4.3%,
which is below both the national and state figures.
Auburn has enjoyed steady residential and industrial growth over the years as development has moved
outward from the major cities. Auburn is currently home to about 4,000 businesses and is the center of
the largest industrial complex in the Pacific Northwest. The City has a growing array of manufacturing
facilities, as well as distribution, wholesale, and retail operations. Auburn’s transit-oriented district is
home to the MultiCare Auburn Medical Center, with a Trauma Level III emergency facility. This location
serves the local geographic area and employs approximately 1,700 people.
Significant developments in the City include the issuance of 278 commercial building permits representing
about $101.2 million in construction investments, including projects such as the construction of the Legacy
Plaza (8-story, 266 unit mixed use development), a new Lea Hill Elementary School replacement,
construction for the replacement of Pioneer Elementary School, construction of the Copper Gate mixed
use development (500 unit mixed use complex), and a new 200,000 square foot warehouse. These
projects have positive impacts on available revenue and, as they take hold, will serve to strengthen the
City’s economic future.
The City’s total assessed property valuation has doubled in 10 years from $7.2 billion in 2011 to $14.4
billion in 2021. However, in the State of Washington property tax is limited to 1% growth year over
year, despite the rising assessed valuations. The total property tax rate has decreased from $1.93 per
1,000 in assessed valuation in 2011 to $1.77 per 1,000 in assessed valuation in 2021.
Sales tax revenue, excluding criminal justice and annexation sales tax credits, increased by $3.0 million
(16%) from 2020 to 2021. Sales tax revenue constitutes about 22% of total General Fund revenue.
While the local economy is generally favorable, the City remains vigilant in its management of expenses
to ensure it lives within its means, particularly with the uncertainties related to concerns of an impending
recession.
Despite economic cycles, the City has continually focused on enhancing the quality of life in the
community and focusing on maintaining and redeveloping its aging infrastructure. For example, the
City’s Arterial Street program is partially funded by dedicating 1% of utility taxes toward arterial roadway
improvements.
The City’s budgeting process is based on financial policies directed at conserving fiscal resources while
supporting programmatic strategies. Budget recommendations reflect a long-range analysis of fiscal
City of Auburn: 2021 ACFR Letter of Transmittal
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trends. These policies and practices have not only averted serious funding problems in the past but have
enabled the General Fund to remain on a firm financial footing during the most recent recession.
The City maintains a stable financial condition by managing expenditure budgets to available revenue
streams. All funds contain adequate balances, and the City’s debt is manageable. The General fund
contains a satisfactory balance along with a reserve fund for stabilization, a significant Insurance fund has
been set aside for contingencies, and the Equipment Rental fund is adequate for vehicle replacement. The
Proprietary and Fiduciary funds are in satisfactory condition. The City completed a review of the City’s
water, sewer, and stormwater utility rates in 2019 and established rates to fund operating and capital
needs through 2022. This will cover increased debt service associated with new revenue bonds being
issued in 2020 to support significant new utility construction projects. Utility rates will be reviewed in
2022 as part of the 2023-2024 Biennial Budget process.
B. Future Economic Outlook
Auburn is in a continuous process of both short-term and long-term financial planning. Short-term
financial planning is inherent in the development of the City’s biennial budget. Concurrent with the
biennial budget is the review of the City’s long-term capital needs. Funding sources are assessed with the
development of the six-year Capital Facilities Plan. The capital facility plan is a component of the
Comprehensive Master Plan, which outlines how the City should look and function in twenty years and
creates a vision that can be realistically implemented. An integral part of this vision is determining how
to allocate the City’s financial resources to achieve the desired goals.
The City has several long-term municipal planning and capital projects underway. These include
reconstruction of aged utility infrastructure and street improvements that include rehabilitation of local
neighborhood streets. These projects will improve mobility, will contribute to the restoration of a
North/South arterial corridor, and provide for greater recreational opportunities for the community.
These municipal projects, coupled with the new private sector developments described earlier, will help
ensure local economic growth continues, albeit not at the rate experienced in the late 1990s. The
challenge is to control costs that grow at a faster rate than revenue. Areas of concern are health care
costs, pension costs, other post-employment benefits (OPEB), and public safety costs related to
incarceration and labor contracts. Continuing to maintain service level in these sectors will draw valuable
resources from other areas such as infrastructure replacement and capital programs. As Auburn moves
forward, economic conditions will be continually monitored and adjustments to city spending, and
services made to maintain the City’s financial health. Long-term plans will be focused on ensuring the
City continues to be an economically strong and viable city.
III. FINANCIAL INFORMATION
A. Cash Management
The City invests in U.S. Treasury and Agency Issues, Prime Bankers Acceptances, Time Deposits, and
Repurchase Agreements. Investment policies and procedures, established by the Mayor and adopted by
the City Council, require the City to establish a trustee to take delivery of all investment transactions at
time of payment. The City has contracted with the Bank of New York to provide delivery versus payment
trustee services on all government agency investments. The State of Washington maintains an investment
pool to provide economies of scale in investing to smaller- and medium-sized cities in the State. The City
uses this service for all funds not invested in longer-term securities. The pool operates under the same
City of Auburn: 2021 ACFR Letter of Transmittal
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legal restrictions that apply to all municipalities in the State and, consequently, uses the same instruments
as listed above. The State also takes delivery of all investment transactions.
The City has adopted a comprehensive investment policy statement to guide City investment practices.
These policies are closely patterned after the recommendations in Investing Public Funds published by the
Government Finance Officers Association (GFOA). Investments are restricted to less than five years in
order to maintain liquidity on all investments in all funds yet enable the City to take advantage of the
yield curve. Fiduciary funds, which involve long-term reserves and require minimal liquidity, are invested
for longer time periods. The City undertakes repurchase agreements only with financial institutions that
offer the City full protection in the event of default, by providing the delivery of the underlying security
to the City.
B. Risk Management
The City participates in the Washington Cities’ Insurance Authority (an insurance pool of over 160
members) and the City actively pursues risk reduction in the operation of its programs.
The Washington Cities’ Insurance Authority not only provides a sharing of risk by pooling of losses, it
also provides an extensive array of professional services in risk management. The pool monitors the
City’s management practices and damage claims. The City follows the guidelines provided by the pool
in an effort to minimize risk exposure in the day-to-day operations of the City’s programs. The City also
maintains an extensive employee safety program managed by the Human Resources department.
The City purchases, with employee participation, most of its health insurance for its employees through
commercial policies administered by Brown and Brown. Employees represented by the outside Teamsters
Union have insurance through the Teamsters organization and employees represented by the inside
Teamsters Union have insurance policies administered by the Association of Washington Cities. Beginning
in 2014, the City created its own worker’s compensation program and pool. Prior, the City participated
in the Washington State Workers’ Compensation program.
To keep its long-term options open and to provide for any uninsured losses that might occur, the City
has elected to build an insurance reserve (the Insurance fund). The Insurance fund supplements various
insurance coverages maintained by the City. This fund is also used to self-insure some limited exposures,
the most significant of which is accidental loss to City-owned vehicles.
IV. OTHER RELEVANT INFORMATION
A. Independent Audit
State law requires an annual audit of all City books of accounts and financial records by the Office of the
State Auditor, which is headed by an independently elected State official, the State Auditor. The Auditor
has broad legal authority to inquire into all financial and legal compliance matters and such audits are
considered equal to audits by certified public accounting firms. The 2021 financial audit of the City is
complete and was conducted in conformance with Generally Accepted Auditing Standards. The financial
statements of all City funds have been included in this audit. The City has been given an unmodified
opinion for 2021. Please see the Auditor’s Report. The State Auditor’s Office also audits the City’s
administration of its federal grants under the single audit concept.
City of Auburn: 2021 ACFR Letter of Transmittal
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B. Awards
The Government Finance Officers Association of the United States and Canada (GFOA) awarded a
Certificate of Achievement for Excellence in Financial Reporting to the City of Auburn for its Annual
Comprehensive Financial Report for the fiscal year ended December 31, 2020. This was the fourteenth
consecutive year that the City has achieved this prestigious award. To be awarded a Certificate of
Achievement, a government must publish an easily readable and efficiently organized comprehensive
annual financial report. This report must satisfy both generally accepted accounting principles and
applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. We believe that our current Annual
Comprehensive Financial Report continues to meet the Certificate of Achievement Program’s
requirements and we are submitting it to the GFOA to determine its eligibility for another certificate.
C. Acknowledgments
Preparation of this report could not have been accomplished without the professional, efficient, and
dedicated staff of the Finance department and various other City employees who assisted in its
production. Further appreciation is extended to the Mayor and City Council for their encouragement,
interest, and support in conducting the financial affairs of the City in a sound and progressive manner.
The assistance of the auditors from the Washington State Auditor’s Office is also greatly appreciated.
Respectfully submitted,
Jamie Thomas
Finance Director
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Office of the Washington State Auditor
Pat McCarthy
INDEPENDENT AUDITOR’S REPORT ON THE AUDIT OF THE FINANCIAL STATEMENTS
Mayor and City Council
City of Auburn
Auburn, Washington
REPORT ON THE AUDIT OF THE FINANCIAL STATEMENTS
Opinions
We have audited the accompanying financial statements of the governmental activities, the business-
type activities, each major fund and the aggregate remaining fund information of the City of Auburn as
of and for the year then ended December 31, 2021, and the related notes to the financial statements,
which collectively comprise the City’s basic financial statements as listed in the table of contents.
In our opinion, the accompanying financial statements referred to above present fairly, in all material
respects, the respective financial position of the governmental activities, the business-type activities,
each major fund and the aggregate remaining fund information of the City of Auburn, as of December 31,
2021, and the respective changes in financial position and, where applicable, cash flows thereof, and the
respective budgetary comparison for the General and Arterial Street funds for the year then ended in
accordance with accounting principles generally accepted in the United States of America.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States
of America (GAAS) and the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States. Our responsibilities under those
standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements
section of our report. We are required to be independent of the City and to meet our other ethical
responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe
that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit
opinions.
Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with accounting principles generally accepted in the United States of America, and for the
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design, implementation, and maintenance of internal control relevant to the preparation and fair
presentation of financial statements that are free from material misstatement, whether due to fraud or
error.
In preparing the financial statements, management is required to evaluate whether there are conditions
or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as
a going concern for twelve months beyond the financial statement date, including any currently known
information that may raise substantial doubt shortly thereafter.
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are
free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that
includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance
and therefore is not a guarantee that an audit conducted in accordance with GAAS and Government
Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting
a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may
involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Misstatements are considered material if there is a substantial likelihood that, individually or in the
aggregate, they would influence the judgment made by a reasonable user based on the financial
statements.
Performing an audit in accordance with GAAS and Government Auditing Standards includes the
following responsibilities:
•Exercise professional judgment and maintain professional skepticism throughout the audit;
•Identify and assess the risks of material misstatement of the financial statements, whether due to
fraud or error, and design and perform audit procedures responsive to those risks. Such
procedures include examining, on a test basis, evidence regarding the amounts and disclosures
in the financial statements;
•Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the City’s internal control. Accordingly, no such opinion is
expressed;
•Evaluate the appropriateness of accounting policies used and the reasonableness of significant
accounting estimates made by management, as well as evaluate the overall presentation of the
financial statements;
•Conclude whether, in our judgment, there are conditions or events, considered in the aggregate,
that raise substantial doubt about the City’s ability to continue as a going concern for a reasonable
period of time; and
•Communicate with those charged with governance regarding, among other matters, the planned
scope and timing of the audit, significant audit findings, and certain internal control-related
matters that we identified during the audit.
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Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s
discussion and analysis and required supplementary information listed in the table of contents be
presented to supplement the basic financial statements. Such information is the responsibility of
management and, although not a part of the basic financial statements, is required by the Governmental
Accounting Standards Board who considers it to be an essential part of financial reporting for placing
the basic financial statements in an appropriate operational, economic or historical context. We have
applied certain limited procedures to the required supplementary information in accordance with
auditing standards generally accepted in the United States of America, which consisted of inquiries of
management about the methods of preparing the information and comparing the information for
consistency with management’s responses to our inquiries, the basic financial statements, and other
knowledge we obtained during our audit of the basic financial statements. We do not express an opinion
or provide any assurance on the information because the limited procedures do not provide us with
sufficient evidence to express an opinion or provide any assurance.
Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the City’s basic financial statements. The combining financial statements and schedules are
presented for the purposes of additional analysis and are not a required part of the basic financial
statements. Such information is the responsibility of management and was derived from and relates
directly to the underlying accounting and other records used to prepare the financial statements. This
information has been subjected to auditing procedures applied in the audit of the basic financial
statements and certain additional procedures, including comparing and reconciling such information
directly to the underlying accounting and other records used to prepare the financial statements or to the
financial statements themselves, and other additional procedures in accordance with auditing standards
generally accepted in the United States of America. In our opinion, the information is fairly stated, in all
material respects, in relation to the basic financial statements taken as a whole.
Other Information
The other information comprises Introductory and Statistical Sections but does not include the basic
financial statements and our auditor’s report thereon. Management is responsible for the other
information included in the financial statements. Our opinions on the basic financial statements do not
cover the other information, and we do not express an opinion or provide any assurance thereon.
In connection with the audit of the basic financial statements, our responsibility is to read the other
information and consider whether a material inconsistency exists between the other information and the
financial statements, or the other information otherwise appears to be materially misstated. If, based on
the work performed, we conclude that an uncorrected material misstatement of the other information
exists, we are required to describe it in our report.
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OTHER REPORTING REQUIRED BY GOVERNMENT AUDITING
STANDARDS
In accordance with Government Auditing Standards, we will also issue our report dated October 28,
2022, on our consideration of the City’s internal control over financial reporting and on our tests of its
compliance with certain provisions of laws, regulations, contracts and grant agreements and other
matters. That report will be issued under separate cover in the City’s Single Audit Report. The purpose
of that report is to describe the scope of our testing of internal control over financial reporting and
compliance and the results of that testing, and not to provide an opinion on internal control over financial
reporting or on compliance. That report is an integral part of an audit performed in accordance with
Government Auditing Standards in considering the City’s internal control over financial reporting and
compliance.
Sincerely,
Pat McCarthy, State Auditor
Olympia, WA
October 28, 2022
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City of Auburn: 2021 Annual Comprehensive Financial Report Management’s Discussion and Analysis
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MANAGEMENT’S DISCUSSION AND ANALYSIS
The City of Auburn’s (the “City”) discussion and analysis is designed to:
• Assist the reader in focusing on significant financial issues
• Provide an overview of the City’s financial activity
• Identify changes in the City’s financial position (its ability to meet future years’ challenges)
• Identify any material deviations from the approved budget
• Identify individual fund issues or concerns
Management’s Discussion and Analysis is designed to focus on the current year’s activities, resulting changes and currently
known facts. Therefore, it should be read in conjunction with the Transmittal Letter and the City’s financial statements.
Financial Highlights
• Total government-wide net position – the difference between assets plus deferred outflows and liabilities plus
deferred inflows – equals $800.2 million, an increase of $43.2 million or 5.7%. Of this, a total of $602.1
million, or 75.2% of total net position, represents net investment in capital assets and includes assets such as
utility systems, streets, buildings, land, vehicles and equipment. An additional $3.2 million of net position is
restricted for purposes of endowment and debt service. Of the remaining $194.9 million of net position, $36.6
million is legally restricted, restricted by City policy for specific purposes, or is restricted for use by the City’s
utilities, and $158.3 million is unrestricted.
• The net increase in government-wide net position during 2021 was $43.2 million. City-owned net investment
in capital assets increased by $20.8 million, restricted net position decreased by $4.5 million, and unrestricted
net position increased by $27.0 million.
• Business-type net position increased by $15.5 million to $299.3 million during 2021 as a result of net capital
investment and net earnings related to the City’s water, sewer and storm water utilities.
• Governmental fund balances at year-end totaled $92.9 million. Of this amount, $38.6 million, or 41.6%, is
unassigned and available to fund ongoing activities. Compared to 2020, total governmental fund balances
increased by $12.3 million. This increase reflects the net effect of a general improvement in the regional
economy, particularly the collection of sales and use taxes, and continued vigilance in monitoring general
spending.
• Total City debt payments during the year, less compensated absences, pension liabilities, and other post-
employment benefits, were $4.6 million. Total long-term liabilities, including bonds and loans, totaled $103.9
million at December 31, 2021. The ending long-term liabilities is a decrease of $12.8 million from 2020 and is
largely attributable to a $7 million reduction in Net Pension liabilities and the retirement of bond principal. See
note 8 for further information on long-term liability activity during the year.
Overview of the Financial Statements
The City’s basic financial statements are presented in three parts:
1) Government-wide financial statements
2) Fund financial statements
3) Notes to the financial statements
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These statements report the City’s net position and changes during the reporting year. The net position is the difference
between assets plus deferred outflows of resources and liabilities plus deferred inflows of resources.
Other supplementary information, in addition to the basic financial statements, is also contained in this report. This
section of the management’s discussion and analysis is intended to introduce and explain the basic financial statements.
Government-wide Financial Statements
The government-wide financial statements are designed to be corporate-like in that all governmental and business-type
activities are consolidated into columns which add to a total for the City. The focus of the Statement of Net Position is
designed to be similar to bottom-line results for the City and its governmental and business-type activities. This statement
combines and consolidates governmental funds’ current financial resources (short-term spendable resources) with capital
assets, deferred outflows of resources, long-term obligations and deferred inflows of resources. Over time, increases or
decreases in net position may be one indicator of improvement or deterioration in the City’s overall financial health.
The Statement of Activities is focused on both the gross and net cost of various functions, including both governmental
and business-type activities, which are supported by the City’s general tax and other revenues. This is intended to
summarize and simplify the user’s analysis of cost of various governmental services and/or subsidy to various business-
type activities. The revenue generated by the specific functions (charges for services, grants, and contributions) is
compared to the expenditures for those functions to show how much each function either supports itself or relies on
taxes and other general funding sources for support. All activity on this statement is reported on the accrual basis of
accounting, requiring that revenues are reported when they are earned and expenditures are reported when they are
incurred, regardless of when cash is received or disbursed.
Governmental activities of the City include general government (executive, finance, legal, human resources, and
contracted court), public safety (police), physical environment, economic environment, transportation, health and
human services, and culture and recreation. The City’s business-type activities include water, sanitary sewer, storm water
and solid waste utilities as well as the operations of an airport and cemetery. Governmental activities are primarily
supported by taxes, charges for services, and grants, while business-type activities are self-supporting through user fees
and charges.
Fund Financial Statements
The Fund Financial Statements are the traditional reporting format for governments. A fund is a fiscal and accounting
entity with a self-balancing set of accounts used to account for specific activities or meet certain objectives. While the
government-wide statements present the City’s finances based on the type of activity (general government vs. business
type), the Fund Financial Statements are presented by fund type, such as the general fund, special revenue funds and
proprietary funds, with the focus on major funds.
Governmental Funds are used to account for essentially the same functions that are reported as governmental activities
in the government-wide financial statements. The government major fund is presented utilizing the “sources and uses
of liquid resources” basis. This is the manner in which the budget is typically developed. The basis of accounting is
different between the governmental fund statements and the government-wide financial statements. The governmental
fund statements focus on the near-term revenues/financial resources and expenditures while the government-wide
financial statements include both near-term and long-term revenues/financial resources and expenditures. The
information in the governmental fund statements can be used to evaluate the City’s near-term financing requirements
and immediate fiscal health. Comparing the governmental fund statements with the government-wide statements can
help the reader better understand the long-term impact of the City’s current-year financing decisions.
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Because the basis of accounting is different between the governmental fund statements and the government-wide
financial statements, reconciliations are provided. The reconciliation between the governmental fund Balance Sheets
and the government-wide Statement of Net Position is found directly following the governmental funds’ Balance Sheet;
the reconciliation between the governmental fund Statement of Revenues, Expenditures and Changes in Fund Balance
and the government-wide Statement of Activities is found directly following the governmental funds’ Statement of
Revenues, Expenditures, and Changes in Fund Balances.
The City maintains twenty-one individual governmental funds. Of these, three are considered major (the general fund,
the arterial street fund, and the capital improvement projects fund) and are presented separately in the governmental
fund Balance Sheet and the governmental fund Statement of Revenues, Expenditures and Changes in Fund Balances.
The remaining governmental funds are combined into a single column labeled “Other Governmental Funds”. Individual
fund data for each of the other governmental funds can be found in the combining statements later in this report. The
City maintains budgetary control over its operating funds through the adoption of a biennial budget. Budgets are
adopted at the fund level according to state law. Budgetary comparison statements are presented for the general and
arterial street funds as part of the basic financial statements. Other budgetary comparison statements are included
following the other government funds’ combining statements.
Proprietary funds are used by governments to account for their business-type activities and use the same basis of
accounting utilized in private industry. Business-type activities provide specific goods or services to a group of customers
that are paid for by fees charged to those customers. There is a direct relationship between the fees paid and the services
rendered.
The City has two types of proprietary funds: enterprise funds and internal service funds. Enterprise funds are used to
account for goods and services provided to citizens, while internal service funds are used to account for goods and
services provided internally to various City departments.
Enterprise funds report the same functions presented as business-type activities in the government-wide statements, but
in greater detail. The City’s enterprise fund statements provide information on the City’s four utilities (water, sanitary
sewer, storm water, and solid waste) as well as the City-owned airport and cemetery.
Internal service funds are an essential accounting tool used to accumulate and allocate costs internally among the City’s
various functions. The City uses internal service funds to account for its fleet of vehicles, maintenance and operation of
facilities, computer hardware and software services, employee costs related to occupational injury or illness, and
insurance premiums. Internal service funds benefit both governmental and business-type activities, and are allocated
accordingly in the government-wide statement of activities.
Fiduciary funds account for assets held by the City in a trustee capacity or as an agent for individuals, private
organizations, other governments or other funds. Fiduciary funds are not included in the government-wide financial
statements because their assets are not available to support the City’s activities.
Notes to the Financial Statements
The notes provide additional information that is essential to a full understanding of the data provided in the government-
wide and fund financial statements. The notes to the financial statements can be found at the end of the Basic Financial
Statements section.
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Other Information
In addition to the basic financial statements and accompanying notes, this report also presents certain required
supplementary information concerning the budget vs. actual reports of the City’s general fund and major special revenue
funds. The budget vs. actual required supplementary information can be found on pages 44 and 45, and the pension
benefit and other postemployment benefit required supplementary information is found in the required supplemental
information section.
The combining statements referred to earlier in connection with nonmajor governmental funds, nonmajor enterprise
funds, and internal service funds are presented in the section titled “Fund Financial Statements and Schedules”.
Government-wide Financial Analysis
The statement of net position may serve as a useful indicator of the City’s financial position. The overall financial
position has improved for the City of Auburn over the prior year. Changes in Net Position from 2020 to 2021 show an
increase in total net position of $43.2 million or 5.7%. Following is a condensed version of the government-wide
statement of net position with a comparison to 2020:
The largest component of the City’s net position, $602.1 million, is its net investment in capital assets. This balance is
broken down by governmental activities ($373.9 million) and business type activities ($228.2 million). Governmental
capital assets, such as streets, parks, trails, and vehicles and equipment related to police and public works, are used to
provide services to the citizens; and business type capital assets account for the utility systems infrastructure (water and
sewer transmission/distribution lines, wells, pump stations, lift stations, storm retention ponds, etc.). As a result, these
assets are necessary for providing existing levels of service and are not for sale, and are therefore not available to fund
current and future City obligations. Total net investment in capital assets increased by $20.8 million over 2020, most
of this increase, $19.3 million, of this increase is related to a sizable increase in investments in the City’s utility systems
As of 12/31/21 As of 12/31/20 As of 12/31/21 As of 12/31/20 As of 12/31/21 As of 12/31/20
Current and other assets 203,873,518$ 153,167,102$ 96,223,698$ 87,940,885$ 300,097,216$ 241,107,987$
Capital assets, net of
accumulated depreciation 398,848,062 398,828,178 259,271,277 247,197,406 658,119,339 646,025,584
Total assets 602,721,580 551,995,280 355,494,975 335,138,291 958,216,555 887,133,571
Deferred Outflows of Resources 3,968,330 4,280,751 1,032,794 1,102,421 5,001,124 5,383,172
Long-term liabilities 58,677,979 67,386,700 37,618,063 42,440,292 96,296,042 109,826,992
Other liabilities 17,407,034 12,151,733 12,790,834 8,985,341 30,197,868 21,137,074
Total liabilities 76,085,013 79,538,433 50,408,897 51,425,633 126,493,910 130,964,066
Deferred Inflows of Resources 29,760,671 3,608,197 6,800,333 1,018,337 36,561,004 4,626,534
Net position
Net investment in capital assets 373,890,921 372,441,433 228,161,102 208,850,752 602,052,023 581,292,185
Restricted for:
Capital Projects 34,399,207 29,391,156 - - 34,399,207 29,391,156
Nonexpendable Permanent Endowment 2,010,357 1,925,183 - - 2,010,357 1,925,183
Debt Service 3,828 2,873 1,201,412 11,032,826 1,205,240 11,035,699
Tourist Promotion 433,129 315,807 - - 433,129 315,807
Drug Investigation & Enforce 1,058,013 998,267 - - 1,058,013 998,267
Comm Dev Block Grant 42,842 42,325 - - 42,842 42,325
Central Business Distr Dev 186,016 166,486 - - 186,016 166,486
Rate Stabilization - - 438,483 438,483 438,483 438,483
Unrestricted 88,819,913 67,845,872 69,517,542 63,474,681 158,337,455 131,320,553
Total net position 500,844,225$ 473,129,402 299,318,539$ 283,796,742$ 800,162,764$ 756,926,144$
STATEMENT OF NET POSITION
Comparative Analysis of 2021 and 2020
Governmental Activities Business-type Activities Total
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infrastructure which is funded with proceeds from utility bonds issued in mid-2020. The City elected the GASB 34
reporting option to include all general infrastructure of the City acquired or substantially renovated since 1980.
The second largest component of the City’s net position is unrestricted net position, $158.3 million. This balance is
broken down by: governmental activities ($88.8 million), which may be used for functions such as public safety
employee salaries and supplies, parks and road maintenance, and other general governmental services; and business-
type activities ($69.5 million) which may only be spent on activities related to one of the four City utilities (water,
sanitary sewer, storm water and solid waste) or to the City-owned ventures (airport and cemetery). Examples of utility
activities include maintenance of water/sewer mains, pump and lift stations, storm drain flushing, water meter reading,
and garbage collection. Activities related to the other City-owned ventures include maintenance of hangars and runways
at the airport, and grooming and landscaping at the cemetery.
Restricted governmental fund net position is $38.1 million and is restricted for purposes such as contractual obligations
on capital project construction, debt service, drug investigation and enforcement, and the cemetery endowment fund.
Changes in Net Position
The change in net position represents the increase or decrease in City net position resulting from its various activities.
The City’s total net position increased by $43.2 million over 2020.
• Governmental activities contributed $27.3 million to the total increase in City net position. The largest factors
include a strong economy which produced tax revenue increases of $9.3 million over 2020, while governmental
expenditures only increased $4.9 million over the same time period.
• Governmental activity expenses had a net decrease of $4.9 million compared to 2020. $9.3 million of this decrease
was attributed to the reduction in the City’s net pension liability. This decrease was offset by increases for regular
operations and services, most of which were attributed to salary and benefit costs. Also, there was a significant
reduction of services in 2020 due to COVID, so many of the operating increases were related to the re-opening of
parks and recreation services in early to mid- 2021.
• Business-type net position totaled $299.3 million, an increase of $15.5 million (5.5%) over 2020, which was a result
of business-type revenues increasing by $8.2 million and a smaller increase in expenses ($5.2 million). The most
notable increase in revenue were charges for services ($4.7 million) and capital grants and contributions ($6.9
million). These increases were partially offset by lower revenues in interest earnings and miscellaneous revenues.
Following table on the next page is a condensed version of the City’s changes in net position. The table shows the
revenues, expenditures and related changes in net position for both governmental-type and business-type activities:
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2021 2020 2021 2020 2021 2020
Revenues:
Program revenues
Charges for services 18,776,026$ 12,487,875$ 73,687,356$ 68,966,638$ 92,463,382$ 81,454,513$
Operating grants and contributions 4,877,951 6,904,118 - - 4,877,951 6,904,118
Capital grants and contributions 11,838,148 9,455,065 13,400,812 6,518,995 25,238,960 15,974,061
General revenues
Property taxes 23,458,850 22,721,452 - - 23,458,850 22,721,452
Sales taxes 25,289,050 21,900,597 - - 25,289,050 21,900,597
Interfund utility taxes 7,101,829 4,543,436 - - 7,101,829 4,543,436
Admission & utility taxes 9,521,243 8,866,275 - - 9,521,243 8,866,275
Excise taxes 6,463,047 4,580,114 - - 6,463,047 4,580,114
Other taxes 5,031,185 3,846,314 - - 5,031,185 3,846,314
Investment earnings (114,738) 1,027,312 17,401 364,027 (97,337) 1,391,339
Miscellaneous revenue 572,013 252,441 277,871 3,373,753 849,884 3,626,193
Total revenues 112,814,604 96,584,999 87,383,440 79,223,413 200,198,044 175,808,412
Expenses:
General government 12,837,356 12,332,380 - - 12,837,356 12,332,380
Public safety 32,440,701 37,951,994 - - 32,440,701 37,951,994
Transportation 18,469,045 17,781,630 - - 18,469,045 17,781,630
Physical environment 2,992,107 3,981,592 - - 2,992,107 3,981,592
Culture and recreation 12,332,974 11,681,611 - - 12,332,974 11,681,611
Economic environment 3,664,340 5,308,106 - - 3,664,340 5,308,106
Health and human services 2,107,798 671,257 - - 2,107,798 671,257
Interest on long-term debt 651,329 650,215 - - 651,329 650,215
Water - - 13,624,963 13,253,694 13,624,963 13,253,694
Sanitary sewer - - 26,829,991 26,004,990 26,829,991 26,004,990
Storm drainage - - 9,545,696 8,780,867 9,545,696 8,780,867
Solid waste - - 18,383,884 15,620,963 18,383,884 15,620,963
Golf course - - - - - -
Other business-type activities - - 3,081,240 2,603,752 3,081,240 2,603,752
Total expenses 85,495,650 90,358,785 71,465,774 66,264,266 156,961,424 156,623,051
Increase in net position before transfers 27,318,954 6,226,214 15,917,666 12,959,147 43,236,620 19,185,361
Transfers 395,869 264,371 (395,869) (264,371) - -
Change in net position 27,714,823 6,490,585 15,521,797 12,694,776 43,236,620 19,185,361
Net Position, January 1, as Previously Reported 473,129,402 466,638,817 283,796,742 271,101,966 756,926,144 737,740,783
Change in Accounting Principle - - - - - -
Net Position, January 1, as Restated 473,129,402 466,638,817 283,796,742 271,101,966 756,926,144 649,349,553
Net position, December 31 500,844,225$ 473,129,402$ 299,318,539$ 283,796,742$ 800,162,764$ 756,926,144$
CHANGES IN NET POSITION
Comparative Analysis of 2021 and 2020
Governmental Activities Business-type Activities Total
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Governmental Activities
The chart below summarizes the governmental activity revenue, by source.
Revenues by Source – Governmental Activities
The City’s most significant Governmental Revenue sources are taxes (68%) and charges for services (17%). These were
also the two categories the City saw the largest increases over 2020 – $9.3 million increase in taxes and $6.3 million
increase in charges for services. Increases in charges for services were mostly attributed to the re-opening of many of the
City’s recreation, senior center, parks, and theater programs in 2021 after significant closures in 2020 due to COVID-19.
General tax revenues increased by 15.7% to $76.9 million between 2020 and 2021:
• Property tax revenue increased $0.7 million or 3.2%. Property tax increases are limited, by State law, to 1%
each year. Any increase that exceeds 1% is related to the “catch-up” collection due to new construction or the
collection of delinquent taxes.
• Sales tax collections increased $3.4 million or 15.5%, due largely to increased economic activity from post-
COVID demand for goods and services and a strong construction sector.
• Utility and admission tax revenue increased by $3.2 million or 24.0% due to an increase in the City’s internal
utility tax rate from 7% to 10%.
• Excise tax revenue increased by $1.9 million or 41.1%. The majority of this is Real Estate Excise Tax (REET),
which is an excise tax that City receives on the sale of real property within the City limits of Auburn. With the
value and volume of home sales experiencing rapid growth in 2021, the City collected higher than normal
amounts of REET.
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The chart below reflects the specific programs’ revenues and related expenses for the various activities of the City.
Gaps between specific programs’ revenues and their related expenses are funded through general tax revenues.
Program Expenses and Revenues – Governmental Activities
Business-Type Activities
The following chart shows the funding sources for the for business-type activities, broken down by source:
Business Type Activity Revenues - By Source
$0
$5
$10
$15
$20
$25
$30
Millions Program Revenues
Expenses
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The most significant revenue source is charges for services ($73.7 million in 2021). Revenue is collected into these funds
via user fees and consumption charges. Rates for these fees are established taking into consideration the ongoing
maintenance and operating costs for the systems they support, as well as the long-term capital investments and
improvements that are necessary in the short and long term. These activities also rely on capital grants and contributions
($13.4 million in 2021) to help fund infrastructure projects.
Following are two charts that contrast the total net position to the spendable portion of net position for each
enterprise fund:
Comparison of Total Net Position to Spendable Net Position – Utility Funds
Comparison of Total Net Position to Spendable Net Position – Airport and Cemetery
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The following chart shows how each utility fund program revenue and expenses compare:
Business Type Activity Revenues and Expenses
(Before Capital Contributions and Transfers)
Generally, revenue collected from user fees of the City’s utility systems exceed expenses. In 2021 there was one exception
which was the Solid Waste fund. In late 2021 the City entered into a new service contract with the City’s solid waste
hauler, Waste Management. The old contract held contract rates (solid waste fund expenditures) artificially low for
several years, the contract change was significant, resulting in a $2.8 million increase in Solid Waste expenses in 2021.
However, Council approved rate increases did not go into effect until late 2021, 2022, and 2023. The increased rate
revenue will be seen in future years.
The following chart shows the relative net position balances for each business-type fund:
Business Type Net Position – By Fund
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The majority of the City’s enterprise net position in enterprise funds relate to capital asset infrastructure, such as water
and sewer mains and the airport runway. As such, most of the net position is not available to support the ongoing
expenditures of the funds. Additionally, some activities such as water, sewer, and storm serve a greater number of
customers and have significantly more expensive infrastructure needs, therefore their net position typically remains
higher to properly fund future investments.
Financial Analysis of Governmental Funds
The purpose of the City’s governmental funds is to report on near-term revenues/financial resources and expenditures.
This information helps determine the City’s financial requirements in the near future. Specifically, fund balance is a good
indicator of the City’s financial resources.
As of December 31, 2021, the City’s governmental funds had combined fund balances of $92.9 million, an increase of
$12.3 million or 15.3% over the previous year. This change was primarily a result of changes in fund balances in the
City’s general fund ($6.0 million) and capital improvement fund ($3.8 million) and mitigation fund ($1.6 million).
The following table shows the changes in fund balance between 2020 and 2021:
Changes in Fund Balance - By Fund
Of the government funds’ total fund balances, $38.6 million is unassigned. Nonspendable, restricted, committed and
assigned fund balances account for the remaining $54.2 million. Of this, $16.1 million is either committed or assigned
for capital projects, $26.2 million is in special revenue funds that are restricted for specific purposes and $2.0 million is
nonspendable principal balances in endowment fund (permanent fund).
2021 2020 Difference
General fund:47,900,705$ 41,939,224$ 5,961,481$
Arterial street fund:2,710,488 2,284,075 426,413
Capital improvement fund:14,082,918 10,284,327 3,798,591
Mitigation fund:16,041,880 14,417,022 1,624,858
Cemetery endowment fund:2,106,447 2,022,262 84,185
All other government funds:10,054,106 9,651,240 402,866
Total:92,896,544$ 80,598,150$ 12,298,394$
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The chart on the following page shows how the total $92.9 million governmental fund balances are allocated, by
relative fund:
Governmental Funds – Fund Balances
The General Fund is the primary operating fund of the City, which accounts for 52% of all governmental fund balances.
All receipts and payments of ordinary City operations are processed through it unless they are required to be accounted
for in another fund.
At the end of 2021, the general fund had a fund balance of $47.9 million, $9.2 million of which is assigned, and $38.6
million is unassigned. This increase is attributed to revenue increases by approximately $4.9 million; at the same time,
expenditures only increased by about $3.7 million over 2020. The most significant contributors to the increase in the
City’s general fund growth between 2020 and 2021 were:
• Increased sales and use tax revenues $ 3.4 million
• Increased city utility tax revenues 1.9 million
• Increased permitting and licensing activity 0.9 million
• Increased development services revenue 1.2 million
• Increased revenue for internal departmental support 0.6 million
• Streamlined Sales Tax revenue (temporarily reinstated) 1.0 million
• One-time revenues related to SB 5092 0.3 million
• Increased revenue for Parks, Arts and Recreation programs 0.7 million
• Reduction in federal grant revenues (due to 2020 CARES grant receipt) ( 3.8 million)
• Increases to salary and benefit costs ( 1.7 million)
• Increases to professional services expenses ( 1.4 million)
• Increases to interfund transfers ( 0.6 million)
• Increases to internal service costs ( 0.8 million)
• Changes in other revenues (net) ( 0.5 million)
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Other funds that had significant fund balances include:
• $2.7 million in the Arterial Street fund, used specifically for major street improvement projects. Most of these
projects are funded with state and federal grants, motor vehicle excise tax, and impact mitigation fees.
• $14.1 million in the Capital Improvement fund, used for various governmental capital asset projects. The fund
balance increased by $3.8 million due primarily to the higher than expected collection of Real Estate Excise Tax
(REET).
• $28.2 million in all other government funds, increased by $2.1 million over 2020:
o $16.0 million of this fund balance is in the mitigation fund, which accounts for the collection of park
and traffic impact and mitigation fees that are ultimately used for capital projects. The fund increased
by $1.6 million between 2020 and 2021 due to higher-than-expected parks and transportation impact
fees, collected from several large commercial development projects in the City.
o The remaining $12.2 million of this fund balance is comprised of the City’s arterial and local street
preservation funds, cemetery maintenance, hotel/motel tax, and municipal parks construction fund.
These funds – in aggregate – increased by about $0.5 million largely due to lower than expected
spending on street projects.
• General fund revenue increased by $4.8 million, sources of which are shown in the chart below. Property taxes
increased by $0.8 million while sales taxes increased by $3.4 million from 2020. Over the same period, utility
and other taxes increased by a net of $1.2 million, Licenses and permits increased by $0.9 million, charges for
services increased by $2.2 million, fines & forfeitures decreased by $0.2 million, intergovernmental revenues
decreased by $3.0 million (due to one-time CARES Act monies in 2020), and miscellaneous revenues decreased
by $0.3 million.
2021 General Fund Revenue Changes – By Source
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Financial Analysis of Proprietary Funds
The City’s proprietary funds provide the same type of information as found in the government-wide financial statements,
but in greater detail. Factors affecting the finances of the City’s proprietary funds have already been addressed in the
discussion of the City’s business-type activities.
General Fund Budgetary Highlights
The City budgets biennially by adopting two single-year budgets at the end of each even-numbered year and then
making adjustments as necessary via budget amendments throughout the biennium. Major amendments to the 2021
budget included:
• Budgeted general fund expenditures and transfers out increased from $82.3 million to $90.2 million. Significant
changes include expenditures associated with new grants and ARPA funding, operating transfers related to capital
projects, and funding for the Auburn Food Bank and Auburn Consolidated Resource Center.
Reasons for the variances in the general fund between the final budget and actual results include:
• Actual General Fund revenues totaled $85.1 million, or 11.2% above budget. Significant areas of favorable
variance include sales and use taxes, which exceeded budget by $5.0 million; criminal justice sales tax, which
exceeded budget by $581,000; building permits, which exceeded budget by $436,000; and plan check fees,
which were $408,000 above budget. All areas of favorable variance are a factor of strong economic activity
and private investment in capital within the City. Areas of unfavorable variance include interfund sewer taxes,
which were $258,000 below budget, and traffic infraction revenues, which were $216,000 under budget.
• Actual general fund expenditures, including transfers out, totaled $79.1 million and were under budget by $9.3
million. Departments experienced savings due to lower than anticipated salary and benefit payments due to
continued vigilance in monitoring city-wide expenditures, as well as large amounts of employee attrition.
Significant areas of under-expenditure include reduced personnel costs – largely due to vacancies – and reduced
professional services contracts and other miscellaneous expenditures.
Capital Asset and Debt Administration
Capital Assets
The City’s investment in capital assets for both its governmental and business-type activities as of December 31, 2021
totaled $658.1 million (net of accumulated depreciation), an increase of $12.1 million from 2020. This investment in
capital assets includes land, buildings, improvements, machinery and equipment, construction in progress, utility
transmission/distribution systems, roads, bridges, and other infrastructure.
Major capital asset changes during the year include:
• Developer contributions resulted in an increase of $11.4 million in utility infrastructure assets and $6.2 million
in governmental infrastructure assets.
• $11.0 million was spent by proprietary funds on construction projects during the year. Most of this was funded
with bond proceeds which were collected in a bond issued in mid-2020.
• $11.7 million was spent by governmental funds on construction projects during the year. Some of the larger
projects in the governmental funds include: $1.3 million for 2021 Local Street Preservation, $1.3 million for
Lakeland Hills Way Preservation, $1.1 million for F Street SE Non-motorized Improvements, $1.0 million for
Game Farm Park Improvements, $0.8 million for Auburn Way North Preservation, Phase 3, $0.7 million for
City Street Light LED Retrofit, and $0.6 million for Auburn Way North Preservation, Phase 2.
City of Auburn: 2021 Annual Comprehensive Financial Report Management’s Discussion and Analysis
29
A summary of the City’s capital assets follows:
More detailed information on capital assets is provided in Note 7.
Long-term Debt
At the end of the current fiscal year, the City had total net bonded debt outstanding of $65.1 million. Of this amount,
$16.6 million is due to other governments, $19.0 million is general obligation bonds, and $29.5 million is revenue bonds
for the water, sewer and storm utilities. The City currently maintains a rating of Aa3 with Moody’s and a rating of AA+
with Standard & Poor’s for its general obligation debt.
The following schedule summarizes the City’s bonded debt:
In addition the City has an outstanding $6.5 million in non-bonded long-term debt with 9 separate Public Works Trust
Fund and Drinking Water Loans.
Washington State law limits the amount of general obligation debt a governmental entity may issue to 7.5% of its
total assessed value. Of the 7.5% limit, 2.5% is for general purposes, 2.5% is for open spaces/parks, and 2.5% is for
utilities. Non-voted (limited tax) general obligation indebtedness is limited to 1.5% of assessed valuation. The
combination of unlimited tax and limited tax general obligation debt for all purposes cannot exceed 7.5% of assessed
valuation. Additional information can be found in note 9 and in the statistical section of this report.
Economic Factors
The past year brought a strong recovery compared to the impacts experienced in 2020 as a result of the COVID-19
pandemic. Positive economic impacts were much greater than expected. Pent up demand for goods and services and
inflationary costs of goods results in strong sales and use tax revenue collections. A strong housing and rental market
lead to higher than expected investments in housing and commercial investments in the City. Real property values,
which had finally recovered to pre-recession levels by 2016, continued to grow and assessed valuation grew an additional
Summary of Capital Assets (net of depreciation)
As of 12/31/2021 As of 12/31/2020 As of 12/31/2021 As of 12/31/2020 As of 12/31/2021 As of 12/31/2020
Land 109,092,635$ 109,092,635$ 12,938,077$ 12,931,692$ 122,030,712$ 122,024,327$
Building 48,122,923 49,646,506 1,581,086 1,681,200 49,704,009 51,327,706
Site improvements 9,948,295 9,061,716 227,899,878 219,562,982 237,848,173 228,624,698
Equipment 9,320,328 9,457,382 230,819 259,085 9,551,147 9,716,467
Intangibles (159,251) (371,841) 7,823,968 6,889,163 7,664,717 6,517,322
Infrastructure 217,715,902 211,948,389 - - 217,715,902 211,948,389
Construction in progress 4,807,230 9,993,391 8,797,449 5,873,284 13,604,679 15,866,675
398,848,062$ 398,828,178$ 259,271,277$ 247,197,406$ 658,119,339$ 646,025,584$
Governmental Activities Business-type Activities Total
Governmental
Activities
Business-type
Activities Total
General obligation bonds 19,013,767$ -$ 19,013,767$
Special assessment bonds - - -
Revenue bonds - 29,510,000 29,510,000
Due to other governments 16,558,066$ - 16,558,066
35,571,833$ 29,510,000$ 65,081,833$
City of Auburn: 2021 Annual Comprehensive Financial Report Management’s Discussion and Analysis
30
6.8% in 2021. Property tax receipts grew by 3.5%, which was almost exclusively attributed to “catch-up” from tax
collected on new construction from the prior year.
While economic recovery remained strong though 2021, there are many fears of an impending recession fueled by high
rates of inflation triggered by increasing labor costs, scarcity of goods, and continued increases by the federal reserve.
The City is considering the strong revenue activity in 2021 as short-term and will be leveraging the increased revenue
towards one-time uses. Prior to experiencing the strong economic conditions of 2021, the City was facing a fiscal
imbalance (expenditure growth outpacing revenue growth) in the next two biennium. While 2021 has provided a slight
reprieve, this imbalance is expected to return if smart fiscal policies and spending are not adhered to and/or new funding
sources are not considered. Therefore, the City remains cautious and continues to vigilantly monitor and control its
expenditures in order to live within the City’s means.
Requests for Information
This financial report is designed to provide a general overview of the City of Auburn’s finances for readers with an
interest in the City’s finances. Questions concerning this report, or requests for additional information, may be addressed
to the Finance Director, City of Auburn, 25 West Main Street, Auburn WA 98001-4998.
City of Auburn: 2021 Annual Comprehensive Financial Report Basic Financial Statements
31
GOVERNMENT-WIDE FINANCIAL STATEMENTS
The City presents two government-wide financial statements.
The Statement of Net Position
This statement provides information all on city assets, liabilities, and deferred outflows/inflows of
resources with the net difference reported as net position.
The Statement of Activities
This statement is focused on both the gross and net cost of various functions, including both
governmental and business-type activities. The governmental activities are principally supported by
taxes and intergovernmental revenues. The business-type activities are intended to recover all, or a
significant portion, of their costs through user fees and charges.
City of Auburn: 2021 Annual Comprehensive Financial Report Basic Financial Statements
32
City of Auburn: 2021 Annual Comprehensive Financial Report Basic Financial Statements
33
Governmental Business-Type
Activities Activities Total
ASSETS:
Cash and Cash Equivalents (Note 3)63,701,259$ 63,049,745$ 126,751,004$
Investments (Note 3)25,326,050 4,951,200 30,277,250
Receivables
Taxes 322,466 - 322,466
Customer Accounts 790,478 7,904,027 8,694,505
Other Receivables 2,701,700 7,104 2,708,804
Due From Other Governmental Units (Note 6)4,123,266 1,438,109 5,561,375
Internal Balances (613,080) 613,080 -
Materials and Supplies Inventory 418,454 318,983 737,437
Restricted Assets:
Temporarily Restricted:
Cash and Cash Equivalents (Note 3)23,038,611 10,993,360 34,031,971
Due From Other Governmental Units (Note 6)1,676,826 - 1,676,826
Permanently Restricted:
Cash and Cash Equivalents (Note 3)2,010,357 - 2,010,357
Prepaids 109,354 - 109,354
Long-Term Contracts and Notes - 600,900 600,900
Net Pension Asset (Note 9)41,642,366 6,347,190 47,989,556
Investment in Joint Ventures (Note 14)38,625,411 - 38,625,411
Depreciable Capital Assets (Net of Accumulated Depreciation) (Note 7)284,948,197 229,711,783 514,659,980
Non-Depreciable Capital Assets (Note 7)113,899,865 29,559,494 143,459,359
Total Assets 602,721,580 355,494,975 958,216,555
DEFERRED OUTFLOWS OF RESOURCES:
Deferred Outflows from Bond Refunding 543,510 142,317 685,827
Deferred Outflows related to Pensions (Note 9)3,424,820 890,477 4,315,297
Total Deferred Outflow of Resources 3,968,330 1,032,794 5,001,124
LIABILITIES:
Accounts Payable 6,713,240 7,999,080 14,712,320
Other Liabilities Payable 351,210 - 351,210
Payable From Restricted Assets:
Accrued Interest - 1,462,084 1,462,084
Deposits - 285,517 285,517
Unearned Revenue 5,802,647 - 5,802,647
Bonds and Other Debt Payable:
Due Within One Year (Note 8)3,870,836 3,044,153 6,914,989
Due in More Than One Year (Note 8)25,342,133 36,481,401 61,823,534
Due to Other Governmental Units:
Due Within One Year (Note 8)669,101 - 669,101
Due in More Than One Year (Note 8)15,888,965 - 15,888,965
Other Non-Current Liabilities:
Net Penion Liability (Note 9)1,026,840 1,136,662 2,163,502
Total Firemen's Pension Liability (Note 9)3,049,730 - 3,049,730
Total OPEB Liability (Note 10)13,370,311 - 13,370,311
Total Liabilities 76,085,013 50,408,897 126,493,910
DEFERRED INFLOWS OF RESOURCES:
Deferred Inflows related to Pensions (Note 9)29,760,671 6,800,333 36,561,004
Total Deferred Inflows of Resources 29,760,671 6,800,333 36,561,004
NET POSITION
Net Investment in Capital Assets 373,890,921 228,161,102 602,052,023
Restricted:
Capital Projects 34,399,207 - 34,399,207
Nonexpendable Permanent Endowment 2,010,357 - 2,010,357
Debt Service 3,828 1,201,412 1,205,240
Tourist Promotion 433,129 - 433,129
Drug Investigation and Enforcement 1,058,013 - 1,058,013
Community Development Block Grant Program 42,842 - 42,842
Central Business District Development 186,016 - 186,016
Rate Stabilization - 438,483 438,483
Unrestricted 88,819,913 69,517,542 158,337,455
Total Net Position 500,844,225$ 299,318,539$ 800,162,764$
The notes to the basic financial statements are an integral part of this statement.
Primary Government
City of Auburn, WashingtonSTATEMENT OF NET POSITIONDecember 31, 2021
City of Auburn: 2021 Annual Comprehensive Financial Report Basic Financial Statements
34
Charges Operating Capital
for Services Grants and Grants and
Expenses and Fines Contributions Contributions
FUNCTIONS / PROGRAMS:
Primary Government
Governmental Activities:
General Government 12,837,356$ 4,545,962$ 2,132,101$ -$
Public Safety 32,440,701 2,612,840 2,272,347 9,754
Transportation 18,469,045 4,239,115 - 9,389,782
Physical Environment 2,992,107 719,487 - 621,162
Culture and Recreation 12,332,974 3,409,793 127,395 546,355
Economic Environment 3,664,340 3,248,829 346,108 498,954
Health and Human Resources 2,107,798 - - 772,141
Interest on Long-Term Debt 651,329 - - -
85,495,650 18,776,026 4,877,951 11,838,148
Business-Type Activities
Water 13,624,963 15,879,799 - 5,382,110
Sanitary Sewer 26,829,991 27,402,561 - 2,653,740
Storm Drainage 9,545,696 10,591,890 - 5,364,962
Solid Waste 18,383,884 16,233,094 - -
Nonmajor Business-Type Activities 3,081,240 3,580,012 - -
71,465,774 73,687,356 - 13,400,812
Total Primary Government 156,961,424$ 92,463,382$ 4,877,951$ 25,238,960$
General Revenues:
Taxes:
Property
Retail Sales and Use
Interfund Utility
Utility
Excise
Other
Investment Earnings
Other Revenues
Gain on Sale of Capital Assets
Contributions to Endowment Funds
Transfers (Note 5)
Total General Revenues
Change in Net Position
Net Position, January 1
Net Position, December 31
The notes to the basic financial statements are an integral part of this statement.
Program Revenues
City of Auburn, Washington
STATEMENT OF ACTIVITIES
For the Year Ended December 31, 2021
Page 1 of 2
City of Auburn: 2021 Annual Comprehensive Financial Report Basic Financial Statements
35
Governmental Business-Type
Activities Activity Total
(6,159,293)$ -$ (6,159,293)$
(27,545,760) - (27,545,760)
(4,840,148) - (4,840,148)
(1,651,458) - (1,651,458)
(8,249,431) - (8,249,431)
429,551 - 429,551
(1,335,657) - (1,335,657)
(651,329) - (651,329)
(50,003,525) - (50,003,525)
- 7,636,946 7,636,946
- 3,226,310 3,226,310
- 6,411,156 6,411,156
- (2,150,790) (2,150,790)
- 498,772 498,772
- 15,622,394 15,622,394
(50,003,525)$ 15,622,394$ (34,381,131)$
23,458,850$ -$ 23,458,850$
25,289,050 - 25,289,050
7,101,829 - 7,101,829
9,521,243 - 9,521,243
6,463,047 - 6,463,047
5,031,185 - 5,031,185
(114,738) 17,401 (97,337)
416,066 277,871 693,937
73,772 - 73,772
82,175 - 82,175
395,869 (395,869) -
77,718,348 (100,597) 77,617,751
27,714,823 15,521,797 43,236,620
473,129,402 283,796,742 756,926,144
500,844,225$ 299,318,539$ 800,162,764$
Changes in Net Position
Net (Expense) Revenue and
Page 2 of 2
City of Auburn: 2021 Annual Comprehensive Financial Report Basic Financial Statements
36
City of Auburn: 2021 Annual Comprehensive Financial Report Basic Financial Statements
37
MAJOR GOVERNMENTAL FUNDS
General Fund
The general fund accounts for all of the City's financial resources except those required by statute
or generally accepted accounting principles to be accounted for in another fund. As is the case with
most municipalities, the general fund is the largest and most important accounting entity of the
City. As noted in the statements that follow, the general fund receives the bulk of its revenues from
local taxes, followed by State shared revenues, service charges, and other income.
The general fund is accounted for on a modified accrual basis. Biennial budgets are adopted
with appropriations lapsing at the end of each year of the biennium.
Arterial Street Fund
This fund is supported by the State of Washington’s motor vehicle fuel tax and by various
grants and is used for major street construction.
Capital Improvement Projects Fund
This fund accounts for major capital acquisitions, and streets and parks construction projects.
City of Auburn: 2021 Annual Comprehensive Financial Report Basic Financial Statements
38
Other Total
General Arterial Capital Governmental Governmental
Fund Street Improvement Funds Funds
ASSETS:
Cash and Cash Equivalents 20,983,360$ 2,344,824$ 12,967,701$ 34,163,455$ 70,459,340$
Investments (Note 3)24,271,875 - 1,054,175 - 25,326,050
Receivables:
Taxes 322,466 - - - 322,466
Customer Accounts 677,831 22,499 - 5,588 705,918
Other Receivables 2,583,170 - - 52,571 2,635,741
Interfund Receivable (Note 5)150,000 - - - 150,000
Inventories 49,674 - - - 49,674
Due From Other Governmental Units (Note 6)3,936,109 656,921 365,010 654,895 5,612,935
Total Assets 52,974,485 3,024,244 14,386,886 34,876,509 105,262,124
LIABILITIES, DEFERRED INFLOWS AND FUND BALANCES:
Liabilities:
Current Payables 3,333,163 313,756 303,968 721,429 4,672,316
Customer Deposits 207,488 - - - 207,488
Municipal Court Payable - - - - -
Matured Bonds Payable - - - - -
Interfund Payable (Note 5)- - - 150,000 150,000
Other Liabilities Payable 14,797 - - - 14,797
Unearned Revenue - - - 5,802,647 5,802,647
Total Liabilities 3,555,448 313,756 303,968 6,674,076 10,847,248
Deferred Inflow of Resources:
Unavailable Revenue-Other 1,518,332 - - - 1,518,332
Total Deferred Inflow of Resources 1,518,332 - - - 1,518,332
Fund Balances: (Note 1)
Nonspendable 49,674 - - - 49,674
Nonspendable Permanent Endowment - - - 2,010,357 2,010,357
Restricted - 2,710,488 13,401,585 20,010,962 36,123,035
Committed - - - 5,283,101 5,283,101
Assigned 9,204,036 - 681,333 898,013 10,783,382
Unassigned 38,646,995 - - - 38,646,995
Total Fund Balances:47,900,705 2,710,488 14,082,918 28,202,433 92,896,544
Total Liabilities, Deferred Inflows and Fund Balances 52,974,485$ 3,024,244$ 14,386,886$ 34,876,509$ 105,262,124$
The notes to the basic financial statements are an integral part of this statement.
City of Auburn, Washington
BALANCE SHEET
GOVERNMENTAL FUNDS
December 31, 2021
City of Auburn: 2021 Annual Comprehensive Financial Report Basic Financial Statements
39
Total governmental fund balances as reported on this statement 92,896,544$
Amounts reported for governmental activities in the statement of net position are different because:
Capital assets used in governmental activities are not financial resources and therefore 389,962,344
not reported in the governmental funds.
Other non-current assets used in governmental activities are not financial resources and therefore are
not reported in the governmental funds.
Investment in Joint Ventures 22,067,345
Prepaids 109,354
Interest receivable on investments 65,959
Net pension asset 36,099,096
58,341,754
Other long-term assets are not available to pay for current-period expenditures and therefore
are reported as unavailable revenue in the governmental funds.
Unavailable revenue beyond the city's 30-day measurable and available period 1,518,332
1,518,332
Internal service funds are used by management to charge the cost of certain activities, such as insurance, fleet
maintenance and information technology, to individual funds. The assets and liabilities of these internal service 24,952,156
funds are included in governmental activities in the statement of net position.
Some liabilities are not due and payable in the current period and therefore are not reported
in the governmental funds.
Bonds and loans payable (21,916,309)
Premium on bonds payable (3,584,342)
Deferred amount on bond refunding 543,510
Deferred amounts related to pensions (24,042,333)
Interest payable (128,925)
Net pension liability (927,902)
Total OPEB liability (13,370,311)
Compensated absences payable (3,400,293)
(66,826,905)
Net position of government activities as reported on the statement of net position 500,844,225$
The notes to the basic financial statements are an integral part of this statement.
RECONCILIATION OF BALANCE SHEET OF GOVERNMENT FUNDS TO THE STATEMENT OF NET POSITION
December 31, 2021
City of Auburn, Washington
City of Auburn: 2021 Annual Comprehensive Financial Report Basic Financial Statements
40
Other Total
General Arterial Capital Governmental Governmental
Fund Street Improvement Funds Funds
REVENUES:
Taxes:
Property 23,234,591$ -$ -$ 246,303$ 23,480,894$
Retail Sales & Use 25,028,855 - - 260,195 25,289,050
Interfund Utility 6,390,281 - - 711,548 7,101,829
Utility 8,136,281 - - 1,384,962 9,521,243
Excise 365,128 - 5,948,593 149,326 6,463,047
Other - - - 41,621 41,621
Licenses and Permits 2,937,103 43,000 - - 2,980,103
Intergovernmental 7,085,148 2,502,822 328,490 3,854,575 13,771,035
Charges for Services 8,450,170 939,047 65,000 2,982,938 12,437,155
Fines and Forfeitures 434,042 - - - 434,042
Special Assessments - - - 591 591
Investment Earnings (224,873) 1,302 8,936 27,020 (187,615)
Miscellaneous 1,332,170 - 444,620 450,386 2,227,176
Total Revenues 83,168,896 3,486,171 6,795,639 10,109,465 103,560,171
EXPENDITURES:
Current:
General Government 12,941,762 - - 196,596 13,138,358
Security of Persons and Property 38,126,303 - - 862,753 38,989,056
Physical Environment 3,985,974 - - - 3,985,974
Transportation 3,815,547 3,593,250 20 5,422,197 12,831,014
Economic Environment 3,093,508 - - 1,146,920 4,240,428
Health and Human Services 2,192,261 - - - 2,192,261
Culture and Recreation 11,953,562 - - - 11,953,562
Debt Service:
Principal - 197,376 - 1,041,802 1,239,178
Interest and Other Costs - 9,357 - 838,272 847,629
Capital Outlay 93,293 - 1,704,504 1,157,898 2,955,695
Total Expenditures 76,202,210 3,799,983 1,704,524 10,666,438 92,373,155
Excess (Deficiency) of Revenues
Over (Under) Expenditures 6,966,686 (313,812) 5,091,115 (556,973) 11,187,016
OTHER FINANCING SOURCES (USES):
Insurance Recoveries 416,066 - - - 416,066
Transfers In (Note 5)1,538,371 740,225 2,472,305 4,952,339 9,703,240
Transfers Out (Note 5)(2,959,642) - (3,764,829) (2,283,457) (9,007,928)
Total Other Financing Sources and Uses (1,005,205) 740,225 (1,292,524) 2,668,882 1,111,378
Net Change in Fund Balances 5,961,481 426,413 3,798,591 2,111,909 12,298,394
Fund Balances - January 1, as Previously Reported 41,939,224 2,284,075 10,284,327 26,090,524 80,598,150
Fund Balances - Ending 47,900,705$ 2,710,488$ 14,082,918$ 28,202,433$ 92,896,544$
The notes to the basic financial statements are an integral part of this statement.
City of Auburn, Washington
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
GOVERNMENTAL FUNDS
For the Year Ended December 31, 2021
City of Auburn: 2021 Annual Comprehensive Financial Report Basic Financial Statements
41
Net change in fund balances per the Statement of Revenues, Expenditures and Changes in Fund Balance 12,298,394$
Amount reported as change in net position in the Statement of Activities are different because:
Governmental funds report capital outlays as expenditures. However, in the statement
of activities the cost of those assets is allocated over their estimated useful lives and
reported as depreciation expense. This is the amount by which capital outlay ($11,384,133)
exceeded depreciation ($17,373,855) in the current period.(5,989,722)
Certain Capital and Joint Venture activities do not use or provide current financial resources
but increase net position.1,865,575
Revenues in the Statement of Activities that do not provide current financial resources
are not reported as revenues in the funds:
Property taxes (22,044)
Special assessments (892)
Other unavailable revenue 221,306
Amortization of bond premium 190,426
Investment interest receivable 59,419
448,215
Developer contributions and annexation of infrastructure assets are reported as revenue in the statement
of activities, but do not provide current financial resources and are not reported as fund revenue.6,240,373
Repayment of the principal of long-term debt consumes the current financial resources of
governmental funds but has no effect on the net position. 1,239,178
Internal service funds are used by management to charge the costs of certain activities,
such as insurance and fleet maintenance, to individual funds. The net revenue (expense)
of certain internal service funds is reported with governmental activities.1,125,128
Some expenses reported in the Statement of Activities do not require the use of current
financial resources and therefore are not reported as expenditures in governmental funds.
Amortization of prepaids (109,354)
Change in accrued interest payable 5,874
Change in net pension obligation or asset 10,339,169
Change in total OPEB liability 1,414,562
Change in compensated absences payable (1,162,569)
10,487,682
Change in net position on the Statement of Activities 27,714,823$
The notes to the basic financial statements are an integral part of this statement.
City of Auburn, Washington
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN
FUND BALANCES OF GOVERNMENT FUNDS TO THE STATEMENT OF ACTIVITIES
For the Year Ended December 31, 2021
City of Auburn: 2021 Annual Comprehensive Financial Report Basic Financial Statements
42
Variance with
Final Final Budget
Original Adopted Actual Positive
(GAAP Basis) (GAAP Basis)Results (Negative)
REVENUES:
Taxes:
Property 22,842,300$ 22,842,300$ 23,234,591$ 392,291$
Retail Sales & Use 19,334,400 19,334,400 25,028,855 5,694,455
Interfund Utility 6,471,400 6,471,400 6,390,281 (81,119)
Utility 7,934,900 7,934,900 8,136,281 201,381
Excise 517,000 517,000 365,128 (151,872)
Licenses and Permits 2,029,400 2,029,400 2,937,103 907,703
Intergovernmental 4,320,220 5,927,620 6,986,777 1,059,157
Charges for Services 7,497,790 7,707,790 8,450,170 742,380
Fines and Forfeitures 722,200 722,200 434,042 (288,158)
Investment Earnings 138,800 138,800 (156,027) (294,827)
Miscellaneous 875,300 1,045,400 1,332,169 286,769
Total Revenues 72,683,710 74,671,210 83,139,370 8,468,160
EXPENDITURES:
Current:
General Government 14,855,110 15,127,542 12,941,762 2,185,780
Security of Persons and Property 39,594,997 41,386,078 37,929,291 3,456,787
Physical Environment 3,967,870 4,162,870 3,985,974 176,896
Transportation 4,092,068 3,992,068 3,815,547 176,521
Economic Environment 4,464,315 3,527,956 3,093,508 434,448
Health and Human Services 991,009 2,472,855 2,192,261 280,594
Culture and Recreation 13,789,408 14,335,608 11,953,562 2,382,046
Capital Outlay 98,000 98,000 93,293 4,707
Total Expenditures 81,852,777 85,102,977 76,005,198 9,097,779
Excess (Deficiency) of Revenues
Over (Under) Expenditures (9,169,067) (10,431,767) 7,134,172 17,565,939
OTHER FINANCING SOURCES (USES):
Insurance Recoveries 25,000 100,000 416,066 316,066
Transfers In (Note 5)162,000 1,595,900 1,538,372 (57,528)
Transfers Out (Note 5)(441,300) (5,076,300) (4,959,642) 116,658
Total Other Financing Sources and Uses (254,300) (3,380,400) (3,005,204) 375,196
Net Change in Fund Balances (9,423,367) (13,812,167) 4,128,968 17,941,135
Fund Balances - Beginning 19,948,152 31,228,400 31,228,400 -
Fund Balances - Ending 10,524,785$ 17,416,233$ 35,357,368$ 17,941,135$
RECONCILIATION OF PERSPECTIVE DIFFERENCE BETWEEN BUDGETARY INFORMATION AND
GENERALLY ACCEPTED ACCOUNTING PRINCIPLES (GAAP):
The Cumulative Reserve Fund is combined withthe General Fund for purposes of GASB Statement 54 10,553,767 The Fire, Relief & Pension Fund is combined withthe General Fund for purposes of GASB Statement 73 1,989,570
Fund Balance - Ending (GAAP)47,900,705$
The notes to the basic financial statements are an integral part of this statement.
Budget Amounts
For the Year Ended December 31, 2021
City of Auburn, Washington
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
GENERAL FUND
City of Auburn: 2021 Annual Comprehensive Financial Report Basic Financial Statements
43
Variance with
Final Final Budget
Original Adopted Actual Positive
(GAAP Basis) (GAAP Basis)Results (Negative)
REVENUES:
Licenses and Permits -$ -$ 43,000$ 43,000$
Intergovernmental $2,193,730 $4,753,488 $2,502,822 ($2,250,666)
Charges for Services 500,000 700,000 939,047 239,047
Investment Earnings 6,200 6,200 1,302 (4,898)
Total Revenues 2,699,930 5,459,688 3,486,171 (1,973,517)
EXPENDITURES:
Current:
Transportation 5,329,030 10,276,648 3,593,250 6,683,398
Debt Service
Principal 197,400 197,400 197,376 24
Interest and Other Costs 9,500 9,500 9,357 143
Total Expenditures 5,535,930 10,483,548 3,799,983 6,683,565
Excess (Deficiency) of Revenues
Over (Under Expenditures (2,836,000) (5,023,860) (313,812) 4,710,048
OTHER FINANCING SOURCES (USES):
Transfers In (Note 5)2,248,150 3,296,915 740,225 (2,556,690)
Total Other Financing Sources and Uses 2,248,150 3,296,915 740,225 (2,556,690)
Net Change in Fund Balances (587,850) (1,726,945) 426,413 2,153,358
Fund Balances - Beginning 1,015,159 2,284,075 2,284,075 -
Fund Balances - Ending 427,309$ 557,130$ 2,710,488$ 2,153,358$
The notes to the basic financial statements are an integral part of this statement.
Budget Amounts
For the Year Ended December 31, 2021
City of Auburn, Washington
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
ARTERIAL STREET FUND
City of Auburn: 2021 Annual Comprehensive Financial Report Basic Financial Statements
44
City of Auburn: 2021 Annual Comprehensive Financial Report Basic Financial Statements
45
MAJOR PROPRIETARY FUNDS
ENTERPRISE FUNDS
The City's enterprise funds are used to account for operations that are financed and operated in a
manner similar to private business operations. The goods and services these funds provide to the
general public are primarily financed by service charges. Enterprise funds are self-supporting and
use the accrual method of accounting. Auburn has four major enterprise funds.
The Water Fund
This fund accounts for all maintenance, construction, and debt service requirements associated with
Auburn’s water system.
The Sanitary Sewer Fund
This fund accounts for maintenance, construction, and debt requirements for Auburn's sanitary
sewer system.
The Storm Drainage Fund
This fund accounts for the maintenance, construction and debt service requirements of Auburn's
storm drainage system.
The Solid Waste Fund
Garbage collection services for the City are accounted for in this fund, supported almost entirely
by garbage collection fees. Expenses include payment to the City's garbage contractor and other
service charges.
City of Auburn: 2021 Annual Comprehensive Financial Report Basic Financial Statements
46
Governmental
ActivitiesNon-Major Total
Sanitary Storm Solid Enterprise Enterprise Internal
Water Sewer Drainage Waste Funds Funds Service Funds
ASSETS:
Current Assets
Cash and Cash Equivalents 14,719,905$ 20,799,254$ 16,904,318$ 7,470,754$ 3,155,514$ 63,049,745$ 18,290,887$
Investments - - 4,951,200 - - 4,951,200 -
Restricted Cash:
Bond Payments 2,246,000 438,395 657,541 - - 3,341,936 -
Customer Deposits 91,672 61,527 3,422 - 128,896 285,517 -
Other 5,987,879 295,639 1,082,389 - - 7,365,907 -
Customer Accounts 2,007,050 4,146,223 1,611,351 127,448 11,955 7,904,027 84,560
Other Receivables - - 7,104 - - 7,104 -
Due From Other Governmental Units 10,000 - 109,161 1,259,601 59,347 1,438,109 187,157
Inventories 242,192 13,059 9,597 - 54,135 318,983 368,780
Total Current Assets 25,304,698 25,754,097 25,336,083 8,857,803 3,409,847 88,662,528 18,931,384
Noncurrent Assets
Long-Term Contracts and Notes - 600,900 - - - 600,900 -
Net Pension Asset 2,266,854 1,360,112 2,040,168 - 680,056 6,347,190 2,493,540
Capital Assets:
Land 1,283,524 1,695,023 5,937,014 - 4,022,516 12,938,077 -
Intangible - Water Rights 7,823,968 - - - - 7,823,968 -
Buildings and Equipment 2,509,599 1,304,180 282,111 496,618 4,101,062 8,693,570 28,423,633
Improvements Other Than Buildings 159,207,726 113,189,587 89,739,833 - 15,517,893 377,655,039 483,114
Construction in Progress 6,918,228 865,150 980,569 - 33,502 8,797,449 65,641
Less: Accumulated Depreciation (69,396,109) (40,839,968) (34,720,930) (496,618) (11,183,201) (156,636,826) (20,086,670)
Total Capital Assets (Net of A/D)108,346,936 76,213,972 62,218,597 - 12,491,772 259,271,277 8,885,718
Total Noncurrent Assets 110,613,790 78,174,984 64,258,765 - 13,171,828 266,219,367 11,379,258
Total Assets 135,918,488 103,929,081 89,594,848 8,857,803 16,581,675 354,881,895 30,310,642
DEFERRED OUTFLOW OF RESOURCES:
Deferred Outflow from Bond Refunding 78,146 34,939 29,232 - - 142,317 -
Deferred Outflow related to Pensions 309,166 193,419 286,842 49,420 51,630 890,477 315,165
387,312 228,358 316,074 49,420 51,630 1,032,794 315,165
LIABILITIES:
Current Liabilities:
Current Payables 1,627,369 612,294 626,924 5,068,571 63,922 7,999,080 1,175,924
Claims Payable (Incurred but not Reported)- - - - - - 865,000
Loans Payable - Current 250,914 288,262 - - - 539,176 -
Employee Leave Benefits - Current 172,872 153,048 199,603 - 39,455 564,978 217,769
Revenue Bonds Payable - Current 1,268,753 244,273 426,973 - - 1,939,999 -
Payable From Restricted Assets:
Accrued Interest 1,065,376 146,794 249,914 - - 1,462,084 -
Deposits 91,672 61,527 3,422 - 128,896 285,517 -
Total Current Liabilities 4,476,956 1,506,198 1,506,836 5,068,571 232,273 12,790,834 2,258,693
Noncurrent Liabilities
Employee Leave Benefits 74,823 66,243 86,394 - 17,077 244,537 94,256
Loans Payable 2,108,418 937,360 - - - 3,045,778 -
Revenue Bonds Payable 24,596,375 3,030,092 5,564,619 - - 33,191,086 -
Net Pension Liability 1,216,710 167,400 (122,090) 87,217 (212,575) 1,136,662 98,938
Total Noncurrent Liabilities 27,996,326 4,201,095 5,528,923 87,217 (195,498) 37,618,063 193,194
Total Liabilities 32,473,282 5,707,293 7,035,759 5,155,788 36,775 50,408,897 2,451,887
DEFERRED INFLOW OF RESOURCES:
Deferred Inflow related to Pensions 2,450,098 1,466,564 2,170,553 67,602 645,516 6,800,333 2,608,684
NET POSITION:
Net Investment in Capital Assets:86,632,404 72,152,380 56,884,546 - 12,491,772 228,161,102 8,885,718
Restricted for:
Debt Service 658,575 148,845 393,992 - - 1,201,412 -
Rate Stabilization - - 438,483 - - 438,483 -
Unrestricted 14,091,441 24,682,357 22,987,589 3,683,833 3,459,242 68,904,462 16,679,518
Total Net Position 101,382,420$ 96,983,582$ 80,704,610$ 3,683,833$ 15,951,014$ 298,705,459$ 25,565,236$
Adjustment to reflect the consolidation
of internal service funds related to
enterprise funds 613,080 Net position of business-type activities 299,318,539$
The notes to the basic financial statements are an integral part of this statement.
City of Auburn, WashingtonSTATEMENT OF NET POSITIONPROPRIETARY FUNDSDecember 31, 2021
Enterprise Funds
City of Auburn: 2021 Annual Comprehensive Financial Report Basic Financial Statements
47
Governmental
Activities
Non-Major Total
Sanitary Storm Solid Enterprise Enterprise Internal
Water Sewer Drainage Waste Funds Funds Service Funds
OPERATING REVENUES:
Charges of Services 15,879,799$ 27,402,561$ 10,591,890$ 16,233,094$ 2,595,566$ 72,702,910$ 15,069,104$
Other Operating Revenue - - - - 984,446 984,446 88,891
Total Operating Revenue 15,879,799 27,402,561 10,591,890 16,233,094 3,580,012 73,687,356 15,157,995
OPERATING EXPENSES:
Operations & Maintenance 3,912,937 19,244,065 4,150,264 15,829,877 1,973,054 45,110,197 10,602,127
Administration 5,221,782 5,455,736 3,109,673 2,554,007 407,814 16,749,012 1,078,827
Depreciation / Amortization 3,826,387 2,382,652 2,133,233 - 670,729 9,013,001 1,834,451
Other Operating Expenses - - - - 29,643 29,643 -
Total Operating Expenses 12,961,106 27,082,453 9,393,170 18,383,884 3,081,240 70,901,853 13,515,405
Operating Income (Loss)2,918,693 320,108 1,198,720 (2,150,790) 498,772 2,785,503 1,642,590
NON-OPERATING REVENUE (EXPENSE):
Interest Revenue 22,790 21,240 (34,640) 5,111 2,900 17,401 16,922
Other Non-Operating Revenue 26,542 765 102,214 38,590 109,760 277,871 118,851
Gain/(Loss) on Sale of Capital Assets - - - - - - (28,785)
Interest Expense (663,857) (72,545) (152,526) - - (888,928) - Total Non-Operating Revenue (Expense)(614,525) (50,540) (84,952) 43,701 112,660 (593,656) 106,988
Income (Loss) Before Contributions & Transfers 2,304,168 269,568 1,113,768 (2,107,089) 611,432 2,191,847 1,749,578
Capital Contribution 5,382,110 2,653,740 5,364,962 - - 13,400,812 -
Transfers In (Note 5)- - - - - - 498,507
Transfers Out (Note 5)(119,472) (91,086) (155,972) - (29,339) (395,869) (797,950)
Change in Net Position 7,566,806 2,832,222 6,322,758 (2,107,089) 582,093 15,196,790 1,450,135
Net Position, January 1 93,815,614 94,151,360 74,381,852 5,790,922 15,368,921 283,508,669 24,115,101
Net Position, December 31 101,382,420$ 96,983,582$ 80,704,610$ 3,683,833$ 15,951,014$ 298,705,459$ 25,565,236$
Change in net position from this statement 15,196,790
Adjustment to reflect the consolidation of internal service fund
activities related to enterprise funds 325,007
Change in net position of business-type activities 15,521,797$
The notes to the basic financial statements are an integral part of this statement.
City of Auburn, Washington
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION
PROPRIETARY FUNDS
For the Year Ended December 31, 2021
Enterprise Funds
City of Auburn: 2021 Annual Comprehensive Financial Report Basic Financial Statements
48
Page 1 of 2
Government
Non Major Activities
Sanitary Storm Solid Enterprise Internal
Water Sewer Drainage Waste Funds Total Service Funds
CASH FLOWS FROM OPERATING ACTIVITIES:
Cash Received from Users 15,990,058$ 27,338,991$ 10,686,209$ 18,786,954$ 4,044,694$ 76,846,906$ 15,180,595$
Cash Paid to Suppliers for Goods & Services (4,829,984) (22,430,302) (3,182,891) (14,570,280) (1,539,432) (46,552,889) (7,286,611)
Cash Paid for Taxes - - - - (29,671) (29,671) -
Cash Paid to Employees (4,498,920) (3,003,678) (4,473,965) (561,610) (1,170,980) (13,709,153) (5,347,164)
Other Cash Received 25,463 765 5,574 - 3,139 34,941 8,718
Net Cash Provided (Used) by Operating Activities 6,686,617 1,905,776 3,034,927 3,655,064 1,307,750 16,590,134 2,555,538
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:
Interfund Loan Payable - - - - (425,000) (425,000) -
Operating Grant (10,000) - 59,602 (1,169,424) 106,621 (1,013,201) -
Transfers In - - - - - - 498,507
Transfers Out (119,472) (91,086) (155,972) - (29,339) (395,869) (797,950)
Net Cash Provided (Used) by Noncapital Financing Activities (129,472) (91,086) (96,370) (1,169,424) (347,718) (1,834,070) (299,443)
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES:
Proceeds from Sale of Equipment - - - - - - 295,219
Purchase of Capital Assets (6,886,858) (1,591,318) (1,152,411) - (48,163) (9,678,750) (1,927,688)
Contributed Capital 690,769 413,631 888,290 - - 1,992,690 -
Proceeds from Other Governments - 22,500 - - - 22,500 -
Proceeds from Insurance Settlement 1,079 - - - - 1,079 110,133
Principal Payment on Debt (1,693,345) (521,487) (411,430) - - (2,626,262) -
Interest Payment on Debt (1,049,101) (152,844) (248,406) - - (1,450,351) -
Net Cash Provided (Used) for Capital and Related Financing Activities (8,937,456) (1,829,518) (923,957) - (48,163) (11,739,094) (1,522,336)
CASH FLOW FROM INVESTING ACTIVITIES:
Proceeds from Sale of Investments - 4,521,754 2,729,581 - - 7,251,335 -
Purchase of Investments - - (5,013,870) - - (5,013,870) -
Interest Received 22,790 21,240 28,030 5,111 2,900 80,071 16,922
Net Cash Provided (Used) in Investing Activities 22,790 4,542,994 (2,256,259) 5,111 2,900 2,317,536 16,922
Net Increase (Decrease) in Cash and Cash Equivalents (2,357,521) 4,528,166 (241,659) 2,490,751 914,769 5,334,506 750,681
Cash and Cash Equivalents - Beginning of Year 25,402,977 17,066,649 18,889,329 4,980,003 2,369,641 68,708,599 17,540,206
Cash and Cash Equivalents - End of Year 23,045,456$ 21,594,815$ 18,647,670$ 7,470,754$ 3,284,410$ 74,043,105$ 18,290,887$
CASH AT END OF YEAR CONSISTS OF:
Cash and Cash Equivalents 14,719,905 20,799,254 16,904,318 7,470,754 3,155,514 63,049,745 18,290,887
Restricted Cash - Bond Payments 2,246,000 438,395 657,541 - - 3,341,936 -
Restricted Cash - Customer Deposits 91,672 61,527 3,422 - 128,896 285,517 -
Restricted Cash - Other 5,987,879 295,639 1,082,389 - - 7,365,907 -
Total Cash 23,045,456$ 21,594,815$ 18,647,670$ 7,470,754$ 3,284,410$ 74,043,105$ 18,290,887$
The notes to the basic financial statements are an integral part of this statement.
City of Auburn, Washington
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
For the Fiscal Year Ended December 31, 2021
City of Auburn: 2021 Annual Comprehensive Financial Report Basic Financial Statements
49
Page 2 of 2
Government
Non Major Activities
Sanitary Storm Solid Enterprise Internal
Water Sewer Drainage Waste Funds Total Service Funds
RECONCILIATION OF NET OPERATING INCOME TO NEW CASH
PROVIDED BY OPERATING ACTIVITIES
Operating Income (Loss)2,918,693$ 320,108$ 1,198,720$ (2,150,790)$ 498,772$ 2,785,503$ 1,642,590$
ADJUSTMENTS TO RECONCILE OPERATING INCOME TO
NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES:
Depreciation 3,826,387 2,382,652 2,133,233 - 670,729 9,013,001 1,834,451
Other Non-Operating Revenue 25,463 765 5,574 - 3,139 34,941 8,718
Asset (Increases) Decreases:
Accounts Receivable 83,379 (82,771) 101,423 2,553,860 459,479 3,115,370 22,600
Miscellaneous A/R Revenue - 19,200 (7,104) - - 12,096 -
Inventory (9,177) 58 (852) - (36,188) (46,159) (53,604)
Liability Increases (Decreases):
Accounts & Vouchers Payable 375,963 (297,548) 304,756 3,281,364 (58,287) 3,606,248 83,364
Deposits Payable 26,880 1 - - 5,203 32,084 -
Wages & Benefits Payable (642,374) (512,983) (773,801) 2,226 (261,362) (2,188,294) (954,003)
Compensated Absences Payable 81,403 76,294 72,978 (31,596) 26,265 225,344 (28,578)
Total Adjustments 3,767,924 1,585,668 1,836,207 5,805,854 808,978 13,804,631 912,948
Net Cash Provided (Used) by Operating Activities 6,686,617$ 1,905,776$ 3,034,927$ 3,655,064$ 1,307,750$ 16,590,134$ 2,555,538$
SCHEDULE OF NONCASH INVESTING, CAPITAL AND
FINANCING ACTIVITIES
Capital Assets Acquired by Contributed Capital 4,691,341 2,240,109 4,476,672 - - 11,408,122 -
Increase (Decrease) in Fair Value of Investment - - (62,670) - - (62,670) -
Total Non Cash Investing, Capital and Financing Activities 4,691,341$ 2,240,109$ 4,414,002$ -$ -$ 11,345,452$ -$
The notes to the basic financial statements are an integral part of this statement.
City of Auburn, Washington
STATEMENT OF CASH FLOWS
For the Fiscal Year Ended December 31, 2021
PROPRIETARY FUNDS
City of Auburn: 2021 Annual Comprehensive Financial Report Basic Financial Statements
50
City of Auburn: 2021 Annual Comprehensive Financial Report Basic Financial Statements
51
FIDUCIARY FUNDS
Fiduciary funds are used to account for assets held by the City of Auburn as a trustee or agent.
Fiduciary funds involve only the receipt, temporary investment, and remittance of fiduciary
resources to individuals, private organizations, and other governmental units.
FIDUCIARY FUNDS
Custodial Fund
This fund accounts for the funds over which the City strictly acts in a custodial capacity.
City of Auburn: 2021 Annual Comprehensive Financial Report Basic Financial Statements
52
Custodial
Fund
ASSETS:
Cash and Cash Equivalents 718,952$
Receivables:
Customer Accounts 196,844
Total Assets 915,796
LIABILITIES:
Current Payables 45,139
Total Liabilities 45,139
NET POSITION
Restricted for Other Governments & Organizations 870,657
Total Net Position 870,657$
The notes to the financial statements are an integral part of this statement.
City of Auburn, Washington
STATEMENT OF FIDUCIARY NET POSITION
December 31, 2021
City of Auburn: 2021 Annual Comprehensive Financial Report Basic Financial Statements
53
Custodial
Funds
ADDITIONS:
Contributions:
Other Governments 251,500$
Tax, Fines, Permits Collection for Other Governments 1,344,694
Amounts collected for other organizations and individuals 80,077
Investment Interest 153
Total Additions 1,676,424
DEDUCTIONS:
Administrative Expenses 28,000$
Payment to City for Services 244,185
Tax, Fines, Permits & Misc distributed to other governments 1,270,459
Distributions to other organizations and individuals 74,312
Total Deductions 1,616,956
Change in Net Position 59,468
Net Position - Janaury 1 811,189.00
Net Position - December 31st 870,657$
The notes to the financial statements are an integral part of this statement.
City of Auburn, Washington
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
For the Fiscal Year Ended December 31, 2021
City of Auburn: 2021 Annual Comprehensive Financial Report Basic Financial Statements
54
City of Auburn: 2021 Annual Comprehensive Financial Report Notes to the Financial Statements
55
City of Auburn
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2021
Note 1 – Summary of Significant Accounting Policies ........................................................................................ 56
A. Reporting Entity ........................................................................................................................ 56
B. Basic Financial Statements .......................................................................................................... 56
C. Measurement Focus, Basis of Accounting, and Basis of Presentation ............................................ 57
D. Budget and Budgetary Accounting .............................................................................................. 59
E. Assets, Liabilities and Fund Balance ............................................................................................. 60
1. Deposits and Investments ..................................................................................................... 60
2. Receivables ...........................................................................................................................61
3. Interfund Receivables and Payables .......................................................................................61
4. Amounts Due From Other Governmental Units.....................................................................61
5. Inventories and Prepaid Expenses ..........................................................................................61
6. Restricted Assets ...................................................................................................................61
7. Interfund Transactions ......................................................................................................... 62
8. Capital Assets ...................................................................................................................... 62
9. Pensions .............................................................................................................................. 62
10. Deferred Outflows/Inflows of Resources .............................................................................. 62
11. Compensated Absences ........................................................................................................ 63
12. Unearned Revenues ............................................................................................................. 63
13. Net Position Components – Proprietary Funds ..................................................................... 63
14. Fund Balance Components – Governmental Funds ............................................................... 63
F. Revenues, Expenditures and Expenses ......................................................................................... 65
G. Estimates ................................................................................................................................... 66
Note 2 – Stewardship, Compliance and Accountability .................................................................................... 66
Note 3 – Deposits and Investments ................................................................................................................. 66
Note 4 – Property Taxes ................................................................................................................................. 69
Note 5 – Interfund Activity ..............................................................................................................................71
Note 6 – Due From Other Governmental Units............................................................................................... 73
Note 7 – Capital Assets and Depreciation ........................................................................................................ 74
Note 8 – Long-Term Liabilities ........................................................................................................................ 76
Note 9 – Pension Plans ................................................................................................................................... 80
Note 10 – Other Post-Employment Benefits .......................................................................................................91
Note 11 – Association of Washington Cities Employment Benefit Trust .............................................................. 93
Note 12 – Construction Commitments .............................................................................................................. 95
Note 13 – Cemetery Endowed Care Fund ......................................................................................................... 95
Note 14 – Joint Ventures / Related Party .......................................................................................................... 95
Note 15 – Jointly Governed Organization / Related Party ............................................................................... 100
Note 16 – Contingencies and Litigations.......................................................................................................... 100
Note 17 – Risk Management and Insurance...................................................................................................... 101
Note 18 – Tax Abatements ............................................................................................................................. 102
Note 19 – Reporting Change .......................................................................................................................... 103
Note 20 – Subsequent Events……..………....………………………………………………………………………..…103
City of Auburn: 2021 Annual Comprehensive Financial Report Notes to the Financial Statements
56
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The City of Auburn, King County, Washington, was incorporated in 1891. It operates under the laws of the State of Washington
applicable to a Non-Charter Code City under a Mayor/Council form of government. A full-time mayor and seven part-time
council members administer Auburn, all elected at-large to four-year terms. The City provides a range of municipal services
authorized by state law, including water services, sanitary sewer collection, solid waste collection, storm drainage, a general
aviation airport, a municipal cemetery and a municipal golf course.
The accounting and reporting policies of the City of Auburn, which conform to Generally Accepted Accounting Principles
(GAAP) for governments, are regulated by the Washington State Auditor’s Office.
Effective for fiscal year 2021, the City did not implement any new accounting and reporting standards issued by the
Governmental Accounting Standards Board (GASB).
A. Reporting Entity
In accordance with the criteria set forth in Statement No. 14 of the Governmental Accounting Standards Board (GASB) the City’s
Annual Comprehensive Financial Report includes all funds controlled by the City.
Joint Ventures - Based on the criteria of Governmental Accounting Standards Board (GASB) Statement No. 14 as modified by
GASB Statements No. 34 and 61, the Valley Communications Center and South Correctional Entity Facility (SCORE) are included
in the accompanying government-wide statement of net position as a joint venture. (Refer to Notes 8 and 14).
Jointly Governed Organizations - The cities of Auburn, Algona and Pacific formed the Valley Regional Fire Authority (VRFA)
effective January 1, 2007. The VRFA is a separate municipal corporation of the State of Washington, organized as a regional
fire protection service authority under RCW 52.26. The VRFA is not financially accountable to the member cities, none of the
participating cities has an ongoing financial interest in the VRFA, and the VRFA is not financially dependent upon any member
city. The VRFA imposes its own property tax levy and fire benefit charge. As such, the VRFA is not included in the City of
Auburn’s financial reporting entity. (Refer to Note 15)
B. Basic Financial Statements
The City’s basic financial statements consist of government-wide financial statements and fund financial statements. The
government-wide financial statements, which include the statement of net position and the statement of activities, summarize
the entire operation of the City. The governmental fund financial statements, which include the balance sheet, statement of
revenues, expenditures and changes in fund balance, and statements of revenues, expenditures and changes in fund balance
budget and actual, provide a more detailed level of reporting. The proprietary fund financial statements, which include
statement of net position, statement of revenues, expenses, and changes in net position and statement of cash flows, provide a
more detailed level of reporting.
The government-wide financial statements report information on all of the non-fiduciary activities of the City. For the most
part, the effect of interfund activity has been eliminated from these statements. Because governmental activities are normally
supported by taxes and intergovernmental revenue, while business-type activities are generally supported through user fees and
charges, governmental activities are reported separately from business-type activities on all government-wide financial
statements.
The Statement of Net Position reports the assets, deferred outflows of resources, deferred inflows and liabilities of the primary
government. The net position section of this statement represents the residual amount of assets and their associated liabilities,
deferred outflow and deferred inflows of resources. The net position section is divided into three categories. The first category
is Net Investment in Capital Assets, which includes all capital assets, net of accumulated depreciation, less the outstanding
balances of any borrowing (bonds, loans) used for acquisition, construction, or improvement of those assets. Capital assets
City of Auburn: 2021 Annual Comprehensive Financial Report Notes to the Financial Statements
57
cannot readily be sold and converted into cash. The second category is Restricted Net Position, which includes those assets, net
of their related debt that have a constraint placed on their use. The constraints are either: 1) externally imposed by creditors,
such as through debt covenants, grantors, contributors, or laws and regulations of other governments, or 2) imposed by law
through constitutional provisions or enabling legislation. The final section is Unrestricted Net Position, and this represents net
position that generally can be used for any purpose. However, they are not necessarily in a spendable form, such as cash.
The statement of activities demonstrates the degree to which the direct expenses of various functions and activities of the City
are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or activity. The
City’s policy is to allocate indirect costs to a specific function or segment. Program revenues include 1) charges to customers or
applicants who purchase, use, or directly benefit from goods, services or privileges provided by a function or activity, and 2)
grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or activity.
Taxes and other items that are not properly included among function or activity revenues are instead reported as general
revenues.
Separate financial statements are included for governmental funds, proprietary funds, and fiduciary funds, even though fiduciary
funds are excluded from the government-wide financial statements. Major individual governmental funds and major individual
enterprise funds are reported in separate columns in the fund financial statements.
C. Measurement Focus, Basis of Accounting and Basis of Presentation
The accounts of the City are organized on the basis of funds, each of which is considered a separate accounting entity. Each
fund is accounted for with a separate set of self-balancing accounts that comprise its assets, liabilities, fund balance/equity,
revenue, and expenditures or expenses, as appropriate. The City resources are allocated to, and accounted for in, individual
funds according to the purpose for which they are spent and how they are controlled.
The basis of accounting refers to the timing of when revenues and expenditures or expenses are recognized in the accounts and
reported in the financial statements.
The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis
of accounting, as are the proprietary fund financial statements. Governmental fund financial statements are reported using the
current financial resources measurement focus and the modified accrual basis of accounting.
The modified accrual basis of accounting is followed in all governmental and permanent funds of the City. Under the modified
accrual basis of accounting, revenues are recognized when measurable and available. Revenues are generally considered
available if they are collected within the current period or soon enough thereafter to pay current liabilities. For derived tax
revenues, such as sales tax and utility business and occupation taxes, revenues are recognized in the period when the underlying
exchange has occurred. For imposed non-exchange taxes, such as property taxes, revenues are recognized when the use of
resources is permitted, or when resources are available. Grant revenue is recognized in the period in which the expenditure
occurs and the eligibility requirements have been met. Non-exchange transactions, such as contributions, are recognized when
the donation eligibility requirements have been satisfied. Those specific major revenue sources accrued are:
Property Taxes – King County and Pierce County collect property taxes and remit to the City daily or monthly.
Sales Tax Revenues – The State of Washington collects all sales taxes. Auburn’s portion is remitted to the City by the State
monthly. The Sales and Use Tax revenue portion received from the state in January of the following year is accrued in the
current year since it is considered a material value and because of when the underlying transaction occurred and the resources
are considered to be measurable and available.
Grant Revenues – On cost reimbursement grants, grant revenue is recognized when the eligible expenditure is incurred.
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Under the modified accrual basis, expenditures are recorded when the fund liability is incurred, except for the un-matured
interest and principal on general long-term debt, which is recognized when due, and for compensated absences which are
recorded as expenditures when liquidated from expendable available fund resources. Purchases of capital assets from
governmental funds are reported as expenditures during the year incurred and the asset is capitalized and reported on the
government-wide statement of net position. Long-term liabilities, including compensated absences not currently due and
payable, are also reported on the government-wide statement of net position.
The accrual basis of accounting is followed in all proprietary and agency funds. Under the accrual basis of accounting, revenues
are recognized when earned and expenses are recorded when incurred.
The three broad fund categories and nine fund types presented in this report are described below:
1. Governmental Fund Types
All governmental funds are accounted for on a spending or “financial flow” measurement focus. This means that only
current assets and current liabilities and deferred inflow of resources generally are included on these balance sheets.
Reported fund balance is considered a measure of “available spendable resources”. Governmental fund operating
statements focus on measuring cash flows rather than net income; and present increases (revenues and other financing
sources) and decreases (expenditures and other financing uses) in net current assets.
a. General fund – This fund is used to account for all financial resources and transactions of the City not accounted
for in another fund, as required. The general fund is always considered a major fund.
b. Special Revenue funds – These funds are used to account for the proceeds of specific revenue sources (other than
major capital projects) that are legally restricted to expenditures for specified purposes. One special revenue fund
is considered major: the arterial street fund. This fund is supported by the State of Washington’s motor vehicle fuel
tax and by various grants.
c. Debt Service funds – These funds account for the accumulation of resources for, and the payment of, general long-
term and special assessment debt principal, interest, and related costs. These funds also include the local
improvement districts (LID) guarantee fund which provides financial security for outstanding LID bonds. No debt
service funds are considered major funds and are reported within the “Other Governmental Funds”.
d. Capital Projects funds – These funds are used to account for financial resources to be used for the acquisition or
construction of major capital facilities other than those financed by proprietary funds. One capital project fund is
considered major: the capital improvement projects fund. This fund accounts for major capital acquisitions, and
street and parks construction projects.
e. Permanent funds – These funds are used to account for resources that are legally restricted to the extent that only
earnings, and not principal, may be used for purposes of supporting a specific City program. The city has one
permanent fund, Cemetery Endowment.
2. Proprietary Fund Types
Financial statements for proprietary funds use the economic resources measurement focus and the accrual basis of
accounting. This means that all assets and all liabilities (whether current or non-current) associated with proprietary fund
activity are included on the Statement of Net Position. Under the accrual basis of accounting, revenues are recognized
when earned and expenses are recorded when incurred. The economic resources measurement focus is applied in the
determination of financial position, net income, and cash flow.
Proprietary funds distinguish operating revenues and expenses from non-operating items. Operating revenues and expenses
generally result from providing services and producing and delivering goods in connection with a proprietary fund’s
principal ongoing operations. The principal operating revenue of the City’s utility funds, other enterprise funds, and internal
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service funds are charges to customers for sales and services, vehicle and computer replacement, and insurance. Operating
expenses for enterprise funds and internal service funds include the cost of sales and services, administrative expenses, taxes,
and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as non-operating
revenues and expenses, or as capital contributions. Substantially all proprietary fund operating revenues are used as security
for revenue bonds.
The Enterprise funds are used to account for services to the general public where all or most of the costs, including
depreciation, are to be financed or recovered from users of such services. Four enterprise funds are considered major funds.
Utilities provided to residents are accounted for in the water fund, sanitary sewer fund, storm drainage fund, and the solid
waste fund.
The Internal Service funds are used to account for the financing of goods and services provided to other funds, departments,
or governments on a cost reimbursement basis. The City uses internal service funds to account for its fleet of vehicles, its
maintenance and operation of facilities, the City-wide provision of computer hardware and software services, the cost of
employees affected by an occupational injury or illness, and its insurance premiums.
3. Fiduciary Fund Types
Fiduciary funds are used to account for assets held by the City in a trustee capacity or as an agent for individuals, private
organizations, other governments, and/or other funds. Fiduciary funds are classified for accounting measurement purposes
as either a governmental fund or a proprietary fund. The Fiduciary Funds are not included in the government-wide financial
statements since they are not assets of the City available to support city programs. The City’s custodial funds function
primarily as a clearing mechanism for cash resources which are collected by the City, held for a period of time and then
disbursed to authorized recipients.
D. Budget and Budgetary Accounting
The City of Auburn budgets in accordance with the Revised Code of Washington (RCW) 35A.33 for the general fund and special
revenue funds. For governmental funds, there are no substantial differences between the budgetary basis and generally accepted
accounting principles. Budgetary accounts are integrated in fund ledgers for all budgeted funds, but the financial statements
include budgetary comparisons for the biennial budgeted governmental funds only. Budgets established for proprietary and
trust funds are “management budgets” and are not legally required to be reported and, as such, are not reported in the Annual
Comprehensive Financial Report (ACFR).
The biennial budget is proposed by the Mayor and adopted by the City Council with legal budgetary control at the fund level;
i.e., expenditures and other financing sources may not exceed budgeted appropriations at the fund level. The Mayor may
authorize transfers within funds; however, the City Council must approve by ordinance any amendments that increase the total
for the fund. At fiscal year-end any unexpended appropriation balances automatically carryforward subject to the rules
established in the enabling ordinance.
The City prepares the biennial budget on the modified accrual basis, which conforms to Generally Accepted Accounting
Principles (GAAP). The Annual Comprehensive Financial Report includes budgetary comparisons for those governmental funds
with legally adopted budgets. Budget amounts include the adopted current year budget appropriations and any revisions made
during the year.
State law establishes the budget process and the time limits under which a budget must be developed. The City follows the
procedures outlined below to establish its biennial budget:
a. Sixty days prior to each odd numbered fiscal year, the Mayor submits to the City Council a preliminary budget for the
biennium commencing the following January 1st. The operating budget includes proposed expenditures and funding
sources.
b. Public hearings are conducted at the Auburn City Council Meetings to obtain taxpayer comments.
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c. Prior to December 31st, the budget is legally enacted through passage of an ordinance.
d. The final operating budget as adopted is published and distributed after adoption. Copies of the budget are made
available to the public.
Original Final
Budget Revisions Budget
Governmental Funds
General Fund 82,294,077$ 7,885,200$ 90,179,277$
Total Governmental Funds 82,294,077 7,885,200 90,179,277
Special Revenue Funds:
Local Street 2,363,950$ 1,257,269$ 3,621,219$
Arterial Street 5,535,930 4,947,618 10,483,548
Hotel/Motel Tax 177,110 - 177,110
Arterial Street Preservation 2,836,250 6,614,391 9,450,641
Drug Forfeiture Fund 492,994 118,800 611,794
American Resuce Plan Fund - 1,958,900 1,958,900
Housing and Community Development 600,000 1,132,500 1,732,500
Recreation Trails - - -
Business Improvement Area 90,000 - 90,000
Cumulative Reserve - 42,200 42,200
Mitigation Fees 4,265,480 3,473,057 7,738,537
Total Special Revenue Funds 16,361,714 19,544,735 35,906,449
Total Budgeted Funds 98,655,791$ 27,429,935$ 126,085,726$
ORIGINAL AND SUPPLEMENTAL APPROPRIATIONS
E. Assets, Liabilities, and Fund Balance
1. Deposits and Investments
It is the City’s policy to invest all temporary cash surplus. At December 31, 2021, the Washington State Local Government
Investment Pool (LGIP) was holding $140,836,442 in short-term investments. This amount is classified on the Statement of
Net Position as part of the line item cash and cash equivalents. The interest on these investments is prorated to the various
funds based upon ownership of investments. For purposes of the Statement of Cash Flows, cash and cash equivalents
includes cash on deposit with financial institutions in both demand and time deposit accounts, and amounts invested in the
Local Government Investment Pool, administered by the State Treasurer’s Office. The State Finance Committee is the
administrator of the statute that created the pool and adopts appropriate rules. The State Treasurer’s Office is responsible
for establishing the investment policy for the pool and reviews it annually. Any proposed changes are reviewed by the LGIP
Advisory Committee. The terms of the policy are designed to ensure the safety and liquidity of the funds deposited in the
LGIP.
The City, by state law, is authorized to purchase certificates of deposit issued by Washington State depositories that
participate in Washington Public Deposit Protection Commission (WPDPC), U.S. Treasury and Agency securities, banker’s
acceptances, and repurchase agreements. The City purchases repurchase agreements only from institutions that use
authorized securities for collateral. The City of Auburn also has signed a “master repurchase agreement” with its primary
bank, Key Bank.
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For purposes of the statement of cash flows, all proprietary fund types and similar trust funds consider all highly liquid
investments (including restricted assets) with maturity of three months or less when purchased to be cash equivalents.
Investments are recorded at fair value or amortized cost. Adjustments are made to cost for investments amortized over the
period to maturity in accordance with GASB Statement No. 31. The investment in the state investment pool is valued at
amortized cost.
2. Receivables
Taxes receivable consist of property taxes (see Note 4). Accrued interest receivable consists of amounts earned on notes
and contracts at the end of the year.
Customer accounts receivable consist of amounts owed by private individuals or organizations for goods and services
provided. Uncollectible amounts are considered immaterial and the direct write-off method is used.
Special assessments are levied against certain property owners and become liens against the property benefited by the
improvement. Special assessments receivable consist of current assessments, which are due within one year, delinquent
assessments remaining unpaid after the due date, and unearned, uncollected assessments, which have been levied, but are
not due within one year.
Other receivables include utility taxes due from private organizations and customer accounts receivable, which consist of
amounts owed from private individuals or organizations for goods and services, including amounts owed for which billings
have not been prepared. Notes and contracts receivable consist of amounts owed on open accounts from private individuals
or organizations for goods and services rendered.
3. Interfund Receivables and Payables
These accounts include all interfund receivables and payables. A separate schedule of interfund activity is furnished in
Note 5.
4. Amounts Due From Other Governmental Units
This account includes amounts due from other governments for grants, entitlements and charges for services. A schedule
by fund of amounts due from other governmental units is presented in Note 6.
5. Inventories and Prepaid Expenses
Government fund types recognize the cost of inventory items and prepaid expenses (expenses that benefit future periods)
as expenditures in the year of purchase. In enterprise and internal service funds, inventories are valued at cost using the
weighted average costing method.
6. Restricted Assets
In accordance with the utility bond ordinances, state law, or other agreements, separate restricted assets have been
established. These assets are restricted for specific purposes including the establishment of bond reserve funds, utility rate
stabilization funds, financing the ongoing capital improvement programs of the various utilities, customer deposits,
nonexpendable permanent cemetery endowment and other purposes.
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7. Interfund Transactions
During the course of normal operations, the City has numerous transactions between City funds. Interfund services provided
and used, such as buying goods and services, are recorded as revenues in the internal service funds and expenditures in the
paying fund. Transfers between funds are included as “other financing sources or uses” in governmental fund types and as
other items in proprietary fund types.
8. Capital Assets
Capital assets are recorded at historical cost when known or at estimated historical cost when actual costs are not known.
Infrastructure, such as roads, bridges and water mains, is reported in the applicable government or business-type activities
columns in the government-wide statement of net position. All infrastructure costs have been calculated and are reported.
Government donated capital assets are stated at their acquisition value on the date donated.
Major outlays for capital assets and improvements are capitalized as projects are constructed. The costs of normal
maintenance and repairs that do not add to the value of the asset or materially extend asset lives are not capitalized. For
proprietary funds, interest costs incurred to bring certain assets to the condition and location necessary for their intended
use are capitalized as part of the historical cost of acquiring the assets.
Capital assets of enterprise and internal service funds are recorded at cost. The capital assets of the airport are carried at
cost and include those acquired with capital contributed by the Federal Government.
Capital assets of all funds are depreciated, and are calculated on the straight-line method using estimated lives as follows:
Asset
Capitalization
Threshold
Depreciation
Method
Estimated Useful
Life
Building $5,000 Straight-line 20 - 50 years
Other Improvements $5,000 Straight-line 10 - 50 years
Equipment/Machinery $5,000 Straight-line 2 - 20 years
Infrastructure $5,000 Straight-line 25 - 50 years
Utility Plant $5,000 Straight-Line 25 - 50 years
At the inception of capital leases at the government fund reporting level, the net present value of future minimum lease
payments allocable to the capital asset is reflected as expenditures and an “other financing source” of an equal amount.
9. Pensions
For purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of resources related
to pensions, and pension expense, information about the fiduciary net position of all state sponsored pension plans and
additions to/deductions from those plans’ fiduciary net position have been determined on the same basis as they are
reported by the Washington State Department of Retirement Systems. For this purpose, benefit payments (including refunds
of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are
reported at fair value.
10. Deferred Outflows/Inflows of Resources
Deferred outflow of resources represents a consumption of net assets that applies to future periods and will not be
recognized as an outflow (expense/expenditure) until that reporting period. Deferred inflow of resources represent an
acquisition of net assets that applies to future periods. The difference between the carrying amount of redeemed and/or
defeased debt and its reacquisition price is the deferred amount on refunding and is amortized over the remaining life of
the debt, or the life of the new debt, whichever is shorter. Deferred outflows and deferred inflows of resources related to
pensions are reported for differences between expected and actual experience, changes of assumptions, and differences
between projected and actual returns on pension plan investments.
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11. Compensated Absences
City employees accrue vacation leave at a variable rate based on years of service. In general, employees are allowed to
accumulate vacation leave up to what would be earned in two years.
Unaffiliated employees accrue sick leave at the rate of eight hours per month up to 960 hours. Sick leave accumulations
over 960 hours at year-end are paid at 25%. Sick leave is not paid upon termination except in some instances upon
separation in good standing, where employees hired before 12/31/1984 can be reimbursed at their current rate for unused
sick leave up to a maximum of 960 hours, at a rate based on years of service. The City’s union contracts have varied sick
leave accruals and payout options.
In general, non-exempt employees can accrue up to 80 hours of compensatory time. The City reports compensated absences
as liabilities in the government-wide statement of net position and in proprietary funds. Vacation, compensatory time, and
sick leave are calculated separately for each employee using the rules described above. The reporting format is in compliance
with GASB statement No. 16.
Governmental funds recognize expenditures for vacation, sick, and compensatory time when paid. Proprietary funds
recognize the expense and accrue a liability for vacation and sick leave pay as the leave is earned. All compensated absence
liabilities include salary-related payments, where applicable.
12. Unearned Revenues
This account reflects the amounts of taxes and other long-term receivables for which the revenue recognition criteria have
not been met. It also reflects prepayments on accounts and grants received in advance.
13. Net Position Components – Proprietary Funds
In proprietary funds, net position is generally restricted in connection with restricted assets or for legal segregation. These
restrictions are identified on the statement of net position of each fund type.
The City holds and administers a Utility System Rate Stabilization Fund. The City may, by ordinance, withdraw from the
Rate Stabilization Fund for inclusion in the net revenue of the Utility System at any time for any current fiscal year of the
Utility System, except that the total amount withdrawn from the Rate Stabilization Fund in any fiscal year may not exceed
the total debt service of the Utility System in that year.
14. Fund Balance Components – Governmental Funds
Fund balance is presented in the governmental fund financial statements and represents the difference between assets and
liabilities reported within the governmental fund.
Beginning with the most restrictive constraints, fund balance amounts are reported in the following categories:
a. Nonspendable fund balance includes items that cannot be spent. This includes activity that is not in a spendable
form (investments, prepaid amounts, long-term portion of loans/notes receivable, or property held for resale
unless the proceeds are restricted, committed or assigned) and activity that is legally or contractually required to
remain intact.
b. Restricted fund balance is externally (outside the City) enforceable limitations imposed by creditors, grantors,
contributors, laws and regulations of other governments, or laws through constitutional provisions or enabling
legislation.
c. Committed fund balance is self-imposed limitations imposed at the highest level of decision making authority,
namely, Mayor and City Council. Mayor and City Council approval by ordinance is required to commit, modify
or rescind resources.
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d. Assigned fund balance includes amounts that are constrained by the City’s intent to be used for a specific purpose,
but are neither restricted nor committed. It is the City’s policy that the Finance Director shall have the authority
to assign amounts of fund balance to a specific purpose; however, before expenditure, amounts must be
appropriated by the City Council which is often adopted by City Council in the biennial budget ordinance. For
governmental funds, other than the General Fund, this is the residual amount within the fund that is not restricted
or committed.
e. Unassigned fund balance is the residual amount of the General Fund not included in the four categories described
above. Also, any deficit fund balances within the other governmental fund types are reported as unassigned.
When expenditure is incurred for purposes for which both restricted and unrestricted resources are available, it is the City’s
policy to use restricted resources first. When expenditures are incurred for purposes, for which unrestricted (committed,
assigned, and unassigned) resources are available, and amounts in any of these unrestricted classifications could be used, it
is the City’s policy to spend committed resources first, then assigned and unassigned, in that order.
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The following shows the composition of the fund balance of the governmental funds for the fiscal year ended December 31,
2021:
F. Revenues, Expenditures and Expenses
Operating revenues and expenses for the proprietary fund are those that result from providing services and producing and
delivering goods and/or services in connection with a proprietary fund’s principal ongoing operations. For the city, operating
expenses for proprietary funds and internal service funds include the cost of sales and services, administrative expenses, and
depreciation of capital assets. All revenues and expenses not meeting this definition are reported as non-operating revenues
and expenses.
Contributions of capital in proprietary fund financial statements arise from internal and external contributions of capital assets
or from grants or outside contributions of resources restricted to capital acquisition and construction.
Transfers between government and business-type activities on the government-wide statement of activities are reported as
general revenues. Transfers between funds reported in the governmental activities column are eliminated, as are transfers
between funds reported in the business-type activities column.
Arterial Capital Other Total
General Street Improvement Governmental Governmental
Fund Fund Fund Funds Funds
Nonspendable
Inventory 49,674$ -$ -$ -$ 49,674$
Cemetery Endowment - - - 2,010,357 2,010,357
Total Nonspendable 49,674 - - 2,010,357 2,060,031
Restricted
Major Street Construction - 2,710,488 - - 2,710,488
REET 1 Allowable Projects - - 7,690,440 - 7,690,440
REET 2 Allowable Projects - - 5,711,145 - 5,711,145
Arterial Street Presevation Fund - - - 1,176,586 1,176,586
Parks and Trails Construction Projects - - - 1,075,138 1,075,138
City Tourism Promotion - - - 433,129 433,129
Drug Investigation and Enforcement - - - 1,058,013 1,058,013
Community Development Block Grant Program - - - 42,842 42,842
Recreational Trail Development - - - 88,712 88,712
Downtown Business Area Improvements - - - 186,016 186,016
Street and Fire Service Mitigation Fees - - - 15,946,698 15,946,698
Debt Service - - - 3,828 3,828
Total Restricted - 2,710,488 13,401,585 20,010,962 36,123,035
Committed
Local Street Improvements (Save our Streets)- - - 3,328,733 3,328,733
Arterial Street Preservation - - - 1,954,368 1,954,368
Total Committed - - - 5,283,101 5,283,101
Assigned
Appropriations Over Estimated Revenue 9,204,036 - - - 9,204,036
Arterial Street Preservation Fund - - 681,333 2,742 684,075
Drug Investigation and Enforcement - - - 1,823 1,823
Recreation Trail Development - - - 83 83
Downtown Business Area Improvements - - - 186 186
Local Street Improvements - - - 3,341 3,341
School Administration Fees - - - 95,182 95,182
Cemetery Capital Enhancement and Maintenance - - - 96,090 96,090
Downtown Infrastructure Improvements - - - 316,579 316,579
Debt Service - - - 381,987 381,987
Total Assigned 9,204,036 - 681,333 898,013 10,783,382
Unassigned
Unassigned 38,646,995 - - - 38,646,995
Total Unassigned 38,646,995 - - - 38,646,995
Total Fund Balances 47,900,705$ 2,710,488$ 14,082,918$ 28,202,433$ 92,896,544$
Governmental Fund Balances
December 31, 2021
Major
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G. Estimates
The preparation of the financial statements in conformity with accounting principles generally accepted in the United States
requires management to make estimates and assumptions that affect the amounts reported in the financial statements and
accompanying notes. Actual results may differ from those estimates.
NOTE 2 – STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY
The city has complied with all material finance-related legal or contractual provisions. For fiscal year 2021, expenditures are
within legal budget appropriations for all city funds.
NOTE 3 – DEPOSITS AND INVESTMENTS
At December 31, 2021, the carrying amount of the City’s cash demand deposits with Key Bank totaled $12,105,475 while the
bank balance was $12,632,481. In addition, the balance of the City’s interest bearing checking account with Pacific Premier
Bank totaled $10,551,567. Furthermore, there was $18,800 in petty cash ($10,000 in the Drug Forfeiture Fund to be used for
enforcements purposes, $8,800 in various petty cash and cashier change funds).
Custodial Credit Risk. Custodial credit risk is the risk associated with the failure of a depository financial institution. In the event
of a depository financial institution’s failure, it is the risk that the City would not be able to recover its deposits or collateralized
securities that are in the possession of the outside parties.
The City minimizes custodial credit risk by following the restrictions set forth in state law.
The Federal Deposit Insurance Corporation (FDIC) insures the City’s deposits up to $250,000. The Washington Public Deposit
Protection Commission (WPDPC) (established under Chapter 39.58 of the Revised Code of Washington) constitutes a multiple
financial institution collateral pool. Pledged securities under the WPDPC collateral pool are held by the WPDPC’s agent in the
name of the collateral pool.
As required by State law, all investments of the City’s funds are obligations of the U.S. Government, or deposits with Washington
State banks that participate in the WPDPC. Pension and permanent funds are not subject to these limitations. All temporary
investments such as the State Investment Pool are stated at amortized cost. Other investments are shown on the statement of
net position at fair value as of December 31, 2021. In accordance with GASB Statement 79, the state investment pool (LGIP) is
reported at amortized cost. The LGIP meets the maturity, quality, diversification and liquidity requirements as set forth in GASB
Statement 79. The LGIP is an unrated external investment pool, and was authorized by Chapter 294, Laws of 1986, and is
managed and operated by the Washington State Treasurer. The LGIP does not have any legally binding guarantees of share
values. The LGIP does not impose liquidity fees or redemption gates on participant withdrawals.
The Office of the State Treasurer prepares a stand-alone LGIP financial report. A copy of the report is available from the Office
of the State Treasurer, PO Box 40200, Olympia, Washington 98504-0200, online at http://www.tre.wa.gov. During 2021, the
net decrease in the fair value of investments being hold for more than one year is $484,816 at year-end.
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As of December 31, 2021, the City had the following investments and maturities:
The city measures and reports investments at fair value using the valuation input hierarchy established by generally accepted
accounting principles, as follows:
*Level 1 – Quoted prices in active markets for identical assets or liabilities;
*Level 2 – These are quoted market prices for similar assets or liabilities, quoted prices for identical or similar assets or
Fair Less than 1 to 2 2 to 3 Greater than
Investment Type Value 1 year years years 3 years
US Agency 30,277,250$ 5,068,150$ $4,956,300 15,301,600$ 4,951,200$
30,277,250$ 5,068,150$ 4,956,300$ 15,301,600$ 4,951,200$
Reconciliation to government-
wide statement of net position:
Total investments above 30,277,250$
Plus: cash in checking 22,657,042
Plus: petty cash 18,800
Less: cash investments in custodial funds (718,952)
Total cash and investments at fair value 52,234,140$
Amortized
Investment Type Cost
State investment pool (LGIP)140,836,442$ 140,836,442$ -$ -$ -$
140,836,442$ 140,836,442$ -$ -$ -$
Total cash and investments, government-
wide statement of net position 193,070,582$
Schedule of Investments by Maturities
As of December 31, 2021
Investment maturities
Governmental Business-Type
Activities Activities Total
Cash and Cash Equivalents 57,898,612$ 63,049,745$ 120,948,357$
Cash with Outside Agencies - - -
Investments 25,326,050 4,951,200 30,277,250
Temporarily Restricted:
Cash and Cash Equivalents 28,841,258 10,993,360 39,834,618
Permanently Restricted:
Cash and Cash Equivalents 2,010,357 - 2,010,357
114,076,277$ 78,994,305$ 193,070,582$
Reconciliation of Cash and Investments
Government-Wide Statement of Net Position
As of December 31, 2021
City of Auburn: 2021 Annual Comprehensive Financial Report Notes to the Financial Statements
68
liabilities in markets that are not active, or other quoted prices that are not observable;
*Level 3 – Unobservable inputs for an asset or liability.
At December 31, 2021, the city had the following investments measured at fair value:
Interest Rate Risk
Interest rate risk is the risk that changes in interest rates of debt investments will adversely affect the fair value of an investment.
As a means of limiting its exposure to fair value losses arising from rising interest rates, the City’s investment policy limits the
maximum maturity of an investment to not greater than five years, unless an investment is matched to an anticipated future
cash flow. The segmented time distribution presented in the schedule of investments by maturity above indicates how the City
has managed its interest rate risk.
Credit Risk
Credit risk is the risk that an issuer or other counterparty to an investment will not fulfill its obligations. State law and the City’s
investment policy limits the instruments in which the City may invest. These include:
1. US Treasury obligations
2. US Government Agency obligations and US Government Sponsored Enterprises (GSE’s) which may include, but are not
limited to Federal Farm Credit Bank (FFCB), Federal Home Loan Bank (FHLB), Government National Mortgage
Association (GNMA), Federal Home Loan Mortgage Corporation (FHLMC), Federal National Mortgage Association
(FNMA), Student Loan Marketing Corporation (SLMA), and/or Tennessee Valley Authority (TVA)
3. Non-negotiable Certificates of Deposit of financial institutions which are qualified public depositories as defined by
RCW 39.58.010(2) and in accordance with the restrictions therein
4. Bonds of the State of Washington and any local government in the State of Washington, General Obligation bonds
outside the State of Washington; at the time of investment, the bonds must have a rating of AA- from S&P or Aa3 from
Moody’s, or higher. In the case of a split rating, the lower rating of these two rating agencies will be used.
5. Washington Local Government Investment Pool (LGIP) managed by the Washington State Treasurer’s Office
6. Other investments authorized by law
7. Time deposits and savings account deposits with Washington State Public Deposit Protection Commission (PDPC)
approved banks.
The City’s municipal bond holding at time of purchase carried a AAA rating from S&P and a Aaa rating from Moody’s.
Concentration of Credit Risk
Concentration of credit risk is the risk of loss attributed to the magnitude of an investment in a single issuer. The City diversifies
its investments by security type and institution. City investment policy restricts security holdings to 25 - 40% of the City’s total
investment portfolio in a single security type. This restriction excludes US Treasury obligations, US Agency Securities and the
Washington State Local Government Investment Pool which may comprise 100% of the total investment portfolio.
Quoted Prices in
Active Markets for
Identical Assets
Significant
Other
Observable
Inputs
Significant
Unobservable
Inputs
Investments by Fair Value Level 12/31/2021 (Level 1) (Level 2) (Level 3)
US Agency 30,277,250$ 30,277,250$ -$ -$
Total Investments by Fair Value Level 30,277,250$ 30,277,250$ -$ -$
Investments and Derivative Instruments Measured at Fair Value
As of December 31, 2021
Fair Value Measurements Using
City of Auburn: 2021 Annual Comprehensive Financial Report Notes to the Financial Statements
69
Other information
Effective 2002, the City has established arrangements with Bank of New York for safekeeping of all investments.
The following is a schedule of investments by fund type:
NOTE 4 – PROPERTY TAXES
Property taxes received during tax year 2021 were $23,480,894 including collection of prior year delinquent assessments.
Property taxes assessed for collection in tax year 2021 were based on a regular tax levy of $1.82 per $1,000 on a total 2020
assessed value of $13,211,866,719.
For levy year 2021, to be received in 2022, the City’s regular tax levy is $1.77 per $1,000 on a 2021 assessed valuation of
$14,386,393,795 as of December 31, 2021, for a total regular levy of $23,897,840. State law provides that debt cannot be
incurred in excess of the following percentages of the taxable property of the City.
1.50% of assessed value without a vote of the people
2.50% of assessed value with a vote of the people
The City has additional authority to incur the following debt as a percentage of total valuation.
2.50% of assessed value with a vote of the people, indebtedness is for utilities
2.50% of assessed value with a vote of the people, indebtedness is for parks, or open space development
At December 31, 2021, the debt limits for the City were as follows:
State
Investment U.S.
Pool Agency Total
Governmental Funds -$ 25,326,050$ 25,326,050$
Enterprise Funds - 4,951,200 4,951,200
Local Government Investment Pool 140,836,442 - 140,836,442
Total 140,836,442$ 30,277,250$ 171,113,692$
Schedule of Investments by Fund Category and Investment Type
As of December 31, 2021
For Parks or
Without General For Open Space
a Vote Purposes Utilities Development TotalItem1.50%1.00%2.50%2.50%Capacity
Legal Limit 215,795,907$ 143,863,938$ 359,659,845$ 359,659,845$ 1,078,979,535$
Outstanding indebtedness (38,474,375) - - - (38,474,375)
Margin available 177,321,532$ 143,863,938$ 359,659,845$ 359,659,845$ 1,040,505,160$
With a Vote
City of Auburn: 2021 Annual Comprehensive Financial Report Notes to the Financial Statements
70
The County Treasurer acts as an agent to collect property taxes levied in the county for all taxing authorities. Taxes are levied
annually on January 1 on property values listed as of the prior August 31. The County assesses property at 100% of fair market
value. A revaluation of all property is required every year and a physical inspection is required at least once every six years.
Property taxes levied by the County Assessor and collected by the County Treasurer become a lien on the first day of the levy
year and may be paid in two installments if the total amount exceeds $50. The first half of real property taxes is due on April
30 and the balance is due October 31. Delinquent taxes bear interest at the rate of 12% and are subject to additional penalties
if not paid as scheduled. No allowance for uncollectable taxes is established because delinquent taxes are considered fully
collectable.
At year-end, property taxes are recorded as a receivable. During the year, property tax revenues are recognized when cash is
received.
1. The Washington State Constitution limits the total regular property taxes to 1% of assessed valuation or $10 per $1,000 of
value. If the taxes of all districts exceed this amount, each is proportionately reduced until the total is at or below the 1%
limit.
2. Washington State law in RCW 84.55.010 limits the annual growth of regular property taxes to the lesser of 1% or the rate
of inflation. With a vote of the majority of the voters within a taxing district, the 1% levy limitation can be “lifted” and
additional taxes may be levied
3. The City may voluntarily levy taxes below the legal limit.
Special levies approved by the voters are not subject to the above limitations.
Property taxes are recorded as receivable and offset by an unearned revenue account when levied. Since state law allows for
the sale of property for failure to pay taxes, no estimate of uncollectible taxes is made.
City of Auburn: 2021 Annual Comprehensive Financial Report Notes to the Financial Statements
71
NOTE 5 – INTERFUND ACTIVITY
Transfers are legally authorized transfers of resources from a fund receiving revenue to the fund through which resources are
to be expended. The principal purposes for interfund transfers include interfund subsidies and transfers into capital project
and debt service funds. Interfund transfers for the year ended December 31, 2021 were as follows:
Loans between funds are classified as interfund receivable and payable. Interfund Loans do not affect total fund equity.
Funds Transfer In Transfer Out
Governmental funds:
General 1,538,372$ 2,959,642$
Total general fund 1,538,372 2,959,642
Other Governmental funds
Special revenue funds:
Arterial Streets 740,225 -
Local Streets 1,564,844 -
Arterial Street Preservation 437,946 68,500
American Rescue Plan Act (ARPA)- 1,376,372
Drug Forfeiture Fund - 125,458
Mitigation Fees - 713,127
Total special revenue funds 2,743,015 2,283,458
Debt service funds:
2020 LTGO A&B Refunding 1,538,200 -
LID 250 370,839 -
Total debt service funds 1,909,039 -
Capital projects funds:
Municipal Park Construction 1,032,987 -
Capital Improvements 2,472,305 3,764,829
7,523 -
Total capital projects funds 3,512,815 3,764,829
Total all governmental funds 9,703,242 9,007,929
Proprietary funds:
Water - 119,472
Sewer - 91,086
Storm Drainage - 155,972
Non-major Enterprise funds
Cemetery - 29,339
Total proprietary funds - 395,869
Internal service funds:
Facilities 76,582 775,950
Innovation & Technology 130,152 -
Equipment Rental 291,773 22,000
Total internal service funds 498,507 797,950
Total 10,201,748$ 10,201,748$
All transfers are considered routine.
Transfers
City of Auburn: 2021 Annual Comprehensive Financial Report Notes to the Financial Statements
72
Balance Balance
Due From Due To 1/1/2021 New Loans Repayments 12/31/2021
Housing & Comm. Dev. General Fund 100,000$ 150,000$ 100,000$ 150,000$
Airport Capital General Fund 425,000$ -$ 425,000$ -$
Total interfund loans 525,000$ 150,000$ 525,000$ 150,000$
All interfund loans are considered short-term cash loans.
*The purpose of the interfund loan to Housing & Community Development was to cover authorized expenditures while the City waited for
reimbursement of federal Community Development Block Grant monies.
*The purpose of the interfund loan to the Airport Capital Fund is to cover 2020 FAA grant-funded costs reimbursed in 2021.
Interfund Loans
City of Auburn: 2021 Annual Comprehensive Financial Report Notes to the Financial Statements
73
NOTE 6 – DUE FROM OTHER GOVERNMENTAL UNITS
As of December 31, 2021 the City had receivables due from other governmental units as follows:
General Fund:
Auburn School District 83,877
King Conservation District -Farmers Market 20,199
King County District Court 441,584
King County Parks -Youth Soccer grant 5,000
King County Property Taxes 13,731
King County -Real Estate Excise Taxes 770,106
King County Sheriff's - Registered Sex Offender Grant 3,646
King County VSHS Levy grant 60,566
Muckleshoot Indian Tribe 385,997
City of Kent-VNET 1,703
Pierce County - Real Estate Excise Taxes 16,441
Port of Seattle -Business Incubator Grant 60,000
Seattle Police Dept -US Department of Justice JAG Grant 41,070
US Department of Justice -Bulletproof Vest Program 6,189
US Department of Justice -2020 CESF Program 21,583
UW Police Department 18,583
WA State Traffic Safety Commission - Grants 1,107
WA State Treasurer - Sales Taxes 1,984,727
Total General Fund 3,936,109
Arterial Street Fund:
Sound Transit 30,808
WA State Transportation Improvement Board - Arterial Street Imp.297,890
WA Dept. of Transportation - Arterial Street Improvements 328,223
Total Arterial Street Fund 656,921
Arterial Street Preservation Fund:
WA State Transportation Improvement Board - Arterial Street Imp.125,265
WA Dept. of Transportation - Arterial Street Preservation 97,784
Total Arterial Street Preservation Fund 223,050
Drug Forfeiture Fund:
City of Puyallup -TNET 3,976
Pierce County Sheriff's Department -TNET 7,480
Total Drug Forfeiture Fund 11,456
Housing & Community Development:
U.S. Dept. of Housing - Community Development Block Grant -COVID1 156,418
U.S. Dept. of Housing - Community Development Block Grant 256,271
WA State Department of Commerce- CDBG-CV2 grant 7,699
Total Housing & Community Development Fund 420,389
Capital Improvements:
Pierce County - Real Estate Excise Taxes 79,166
WA State Department of Commerce 2,751
WA State Recreation & Conservation Office 283,093
Total General Government Capital Improvements Fund 365,010
Water Fund:
Valley Communications 10,000
Total Water Fund 10,000
Storm Drainage Fund:
City of Algona 180
City of Pacific 4,819
King County Flood Control District -Grant 104,162
Total Storm Drainage Fund 109,161
Solid Waste Fund:
King County - Waste reduction and recycling grant 20,340
Seattle King County Public Health 14,502
Waste Management 1,220,592
WA State Department of Ecology - Grant 4,166
Total Solid Waste fund 1,259,601
Airport Fund
Federal Aviation Administration -Grant 59,347
Total Airport Capital fund 59,347
Facilities Fund:
City of Federal Way 18,333
Total Airport Capital fund 18,333
Information Services Fund:
City of Algona 23,626
City of Pacific 8,470
Valley Regional Fire Authority 3,000
Total Information Services fund 35,096
Equipment Rental Fund:
Auburn School District 133,728
Total Information Services fund 133,728
Total 7,238,201
Reconciliation to government-wide statement of net position:
Total due from other governmental units,
7,238,201
Due from Other Governmental Units
government-wide statement of net position
City of Auburn: 2021 Annual Comprehensive Financial Report Notes to the Financial Statements
74
NOTE 7 – CAPITAL ASSETS AND DEPRECIATION
Capital asset activity for the year ended December 31, 2021 is as follows:
Balance Decreases/Balance
1/1/21 Increases Adjustments 12/31/21
Governmental activities:
Capital assets, not being depreciated:
Land 109,092,635$ -$ -$ 109,092,635$
Construction in progress 9,993,391 4,804,353 (9,990,514) 4,807,230
Total capital assets, not being depreciated 119,086,026 4,804,353 (9,990,514) 113,899,865
Capital assets, being depreciated:
Buildings 74,327,861 - - 74,327,861
Improvements other than buildings 26,687,775 1,595,299 - 28,283,074
Machinery and equipment 33,438,819 2,071,067 (1,934,123) 33,575,763
Intangibles 346,573 217,520 - 564,093
Infrastructure 425,364,605 20,854,464 - 446,219,069
Total capital assets being depreciated 560,165,633 24,738,350 (1,934,123) 582,969,860
Less: accumulated depreciation for:
Buildings (24,681,355) (1,523,583) - (26,204,938)
Improvements other than buildings (17,626,059) (708,720) - (18,334,779)
Machinery and equipment (23,981,437) (1,884,117) 1,610,119 (24,255,435)
Intangibles (718,414) (4,933) 3 (723,344)
Infrastructure (213,416,216) (15,086,951) - (228,503,167)
Total accumulated depreciation (280,423,481) (19,208,304) 1,610,122 (298,021,663)
Total capital assets, being depreciated, net 279,742,152 5,530,046 (324,001) 284,948,197
Governmental activities capital assets, net 398,828,178$ 10,334,399$ (10,314,515)$ 398,848,062$
Business-type activities:
Capital assets, not being depreciated:
Land 12,931,692$ 6,385$ -$ 12,938,077$
Water Rights 6,889,163 934,805 - 7,823,968
Construction in progress 5,873,284 8,800,700 (5,876,535) 8,797,449
Total capital assets, not being depreciated 25,694,139 9,741,890 (5,876,535) 29,559,494
Capital assets, being depreciated:
Buildings 6,085,433 - - 6,085,433
Improvements other than buildings 360,448,717 17,206,321 - 377,655,038
Machinery and equipment 2,592,940 15,196 - 2,608,136
Total capital assets being depreciated 369,127,090 17,221,517 - 386,348,607
Less: accumulated depreciation for:
Buildings (4,404,233) (100,114) - (4,504,347)
Improvements other than buildings (140,885,735) (8,869,425) - (149,755,160)
Machinery and equipment (2,333,855) (43,462) - (2,377,317)
Total accumulated depreciation (147,623,823) (9,013,001) - (156,636,824)
Total capital assets, being depreciated, net 221,503,267 8,208,516 - 229,711,783
Business-type activities capital assets, net 247,197,406$ 17,950,406$ (5,876,535)$ 259,271,277$
Schedule of Capital Asset Activity
City of Auburn: 2021 Annual Comprehensive Financial Report Notes to the Financial Statements
75
Capital asset activity for the year ended December 31, 2021 is as follows:
Depreciation/amortization expense was charged to functions/programs of the City as follows:
Governmental activities:
General Government 1,076,431$
Public Safety 786,912
Transportation 14,244,822
Health and Human Services -
Culture and Recreation 1,265,690
Capital assets held by the City's internal service funds are charged to the various
functions based on their usage of the assets 1,834,449
Total depreciation/amortization expense - governmental activities 19,208,304$
Business-type activities:
Water 3,826,387$
Sanitary Sewer 2,382,652
Storm Water 2,133,233
Solid Waste -
Airport 633,181
Cemetery 37,548
Total depreciation expense - business-type activities 9,013,001$
City of Auburn: 2021 Annual Comprehensive Financial Report Notes to the Financial Statements
76
NOTE 8 – LONG-TERM LIABILITIES
General Obligation Bonds are direct obligations of the City for which its full faith and credit are pledged. Debt service for voter-
approved issues, of which the City has none, would be funded by special property tax levies. Debt service for City Council
authorized bonds, also called councilmanic bonds, is funded from regular property taxes or general revenues, and is generally
paid from debt service funds but can be paid from other designated funds.
General Obligation Bonds outstanding at year-end are as follows:
• 2016 Limited Tax General Obligation Refunding Bonds were issued for the primary purposes of (a) refunding on a current
basis the 2005 Limited Tax General Obligation Refunding Bonds and (b) refunding on an advance basis the 2006A Limited
Tax General Obligation Bonds. As a result of these transactions, the 2005 and 2006A bonds are considered to be defeased
and the liability for those bonds has been removed from the City’s financial statements. The remaining balance of
outstanding defeased debt as of December 31, 2021 is $1,428,767.
• 2020 Limited Tax General Obligation Series A Refunding Bonds were issued in the principal amount of $15,010,000 on
October 22, 2020 for the purpose of refunding on a current basis the 2010 Limited Tax General Obligation Series B Bonds
of which $17,560,000 was outstanding. The bonds were issued at a premium of $3,124,761 and bear a fixed interest rate
of 4-5% through maturity. The net proceeds of $17,973,858 (after payment of $160,903 in issuance costs) were deposited
into an irrevocable trust with an escrow agent to pay the full outstanding principal and interest on the 2010 B Bonds on
the October 23, 2020 redemption date. As a result of this transaction, the 2010 B bonds are considered to be defeased and
the liability for those bonds have been removed from the City’s financial statements. The refunding transaction reduced
the City’s total debt service payments by $3,898,891 through the final maturity of December 1, 2039 and resulted in an
economic gain (the difference between the present values of the debt service payments on the old and new debt) of
$3,391,515.
• 2020 Limited Tax General Obligation Series B Refunding Bonds were issued in the principal amount of $4,470,000 on
October 22, 2020 for the purpose of refunding on a current basis the 2010 Limited Tax General Obligation Series D Bonds
of which $5,160,000 was outstanding. The bonds were issued at a premium of $864,988 and bear a fixed interest rate of
2-5% through maturity. The net proceeds of $5,287,071 (after payment of $47,917 in issuance costs) were deposited into
an irrevocable trust with an escrow agent to pay the full outstanding principal and interest on the 2010 D Bonds on the
October 23, 2020 redemption date. As a result of this transaction, the 2010 D bonds are considered to be defeased and
the liability for those bonds have been removed from the City’s financial statements. The refunding transaction reduced
the City’s total debt service payments by $1,003,626 through the final maturity of December 1, 2034 and resulted in an
economic gain (the difference between the present values of the debt service payments on the old and new debt) of
$903,068.
Revenue Bonds are payable from water, sewer and storm drainage utility revenues generated by those enterprise funds.
• 2013 Utility System Revenue Bonds were issued to finance water and storm utility system improvements.
• 2020 Utility System Revenue Bonds were issued in the par amount of $12,030,000 to finance water utility system
improvements.
• 2020 Utility System Revenue Refunding Bonds were issued in the principal amount of $11,835,000 for the purpose of
advance refunding the 2010 Utility System Revenue Bonds of which $15,675,000 was outstanding. The bonds were issued
at a premium of $2,997,541 and bear a fixed interest rate of 5% through maturity. The net proceeds of $14,933,747 (after
payment of $129,168 in issuance costs and the City’s reserve account contribution of $1,175,010) were deposited into an
irrevocable trust with an escrow agent to pay the full outstanding principal and interest on the December 1, 2020
redemption date. As a result of this transaction, the 2010 Revenue Bonds are considered to be defeased and the liability
for those bonds have been removed from the City’s financial statements. The refunding transaction reduced the City’s total
debt service payments by $2,728,553 through the final maturity of December 1, 2030 and resulted in an economic gain
(the difference between the present values of the debt service payments on the old and new debt) of $2,552,622.
City of Auburn: 2021 Annual Comprehensive Financial Report Notes to the Financial Statements
77
State of Washington Public Works Trust Fund and Drinking Water State Revolving Fund Loans are a direct responsibility of the
City. Auburn currently has nine outstanding loans with a remaining total balance of $6,487,498. Seven of the loans are for
water and sewer construction projects. The loans are being repaid from water and sewer fund revenues over a 20-year period
that begins upon each project completion (PWTF 2001, PWTF 2002, PWTF 2004, PWTF 2006, PWTF 2013, DWSRF 2016, &
DWSRF 2020). The other two loans are for arterial street improvements and are being repaid from arterial street fund revenues
over a 20-year period that began in 2009 upon project completion (PWTF 2008) and over a 29-year period that began in 2013
upon project completion (PWTF 2012).
Compensated Absences are paid by those funds that have employees. These are mostly payable by the General fund and
enterprise funds.
The following schedules summarize the long-term debt transactions of the City for the year ended December 31, 2021. The first
table summarizes all debt transactions for Auburn, while the second provides detailed information on all long-term debt.
Additional schedules reflect total annual debt service requirements to maturity and the reconciliation of debt by fund type.
General
Obligation Utility
Employee
Leave Benefit
Other Post
Employment
Benefits
Net Pension
Liability
Firemen's
Pension
Liability Premium
Due To Other
Governments Total
Long-term liabilities payable 12/31/20 23,155,487$ 35,721,217$ 3,162,498$ 14,784,873$ 9,175,767$ 3,562,986$ 9,893,900$ 17,200,962$ 116,657,690$
Added - - 2,864,010 290,093 - 207,471 - - 3,361,574
Retired (1,239,178) (2,626,262) (1,504,676) (1,704,655) (7,012,265) (720,727) (688,473) (642,896) (16,139,132)
Long-term liabilities payable 12/31/21 21,916,309$ 33,094,955$ 4,521,832$ 13,370,311$ 2,163,502$ 3,049,730$ 9,205,427$ 16,558,066$ 103,880,132$
CHANGES IN LONG-TERM LIABILITES SUMMARY
Year Principal Interest Principal Interest Principal (1)Interest
2022 1,751,659 1,495,120 2,676,552 1,372,447 4,428,211 2,867,567
2023 1,818,039 1,425,906 2,740,438 1,277,319 4,558,477 2,703,225
2024 1,890,575 1,353,809 2,835,438 1,178,203 4,726,013 2,532,012
2025 1,969,116 1,278,685 2,827,594 1,074,537 4,796,710 2,353,222
2026-2030 9,234,006 5,092,278 14,764,482 3,661,967 23,998,488 8,754,245
2031-2035 11,101,303 2,777,746 6,052,038 1,240,950 17,153,341 4,018,696
2036-2040 7,807,135 648,936 3,983,961 351,098 11,791,096 1,000,034
2041-2045 - - 116,993 292 116,993 292
Totals 35,571,833$ 14,072,480$ 35,997,496$ 10,156,813$ 71,569,329$ 24,229,293$
71,569,329$ Principal debt service requirements to maturity
4,521,833 Employee Leave Benefits
13,370,311 Other Post Employment Benefits
2,163,502 Net Pension Liability
3,049,730 Firemen's Pension Liability
9,205,427 Premium
103,880,132$ Long Term Liabilities 12/31/21
Obligation Bonds Bonds/Loans Long-Term Debt
DEBT SERVICE REQUIREMENT TO MATURITY
General Utility Total
City of Auburn: 2021 Annual Comprehensive Financial Report Notes to the Financial Statements
78
Interest Maturity Original Principal Balance Balance Due Within
Issue Name Rates Date Amount(2) Installments 12/31/20 Additions Reductions 12/31/21 One Year
GOVERNMENTAL DEBT
General Obligation Bonds:
LTGO Refunding 2016 1.64 -1.64%12/1/2025 3,166,930 $71,470 - $366,159 1,770,569 - (341,802) 1,428,767 347,558
LTGO Refunding 2020A (LTGO 2010B)4.00-5.00%12/1/2039 15,010,000 $480,000 - $1,045,000 14,145,000 - (480,000) 13,665,000 505,000
LTGO Refunding 2020B (LTGO 2010D)4.00-5.00%12/1/2034 4,470,000 $71,470 - $366,159 4,140,000 - (220,000) 3,920,000 230,000
Total General Obligation Bonds 22,646,930 20,055,569 - (1,041,802) 19,013,767 1,082,558
Employee Leave Benefits:
Compensated absences 2,578,327 2,351,284 (1,217,294) 3,712,317 2,590,902
Other Post Employment Benefits:
LEOFF 1 14,784,873 290,093 (1,704,655) 13,370,311 -
Pensions:
Net Pension Liability 6,075,671 - (5,048,831) 1,026,840 -
Firemen's Pension Liability 3,562,986 207,471 (720,727) 3,049,730 -
Public Works Trust Fund Loans:
PWTF 2008 0.50%7/1/2028 1,527,273 $80,383 643,062 - (80,383) 562,679 80,383
PWTF 2012 0.50%6/1/2041 3,284,857 $116,993 2,456,856 - (116,993) 2,339,863 116,993
Total Public Works Trust Fund Loans 4,812,130 3,099,918 - (197,376) 2,902,542 197,376
Premium Related to Debt 3,803,847 - (219,504) 3,584,343 -
Total Governmental 27,459,060$ 53,961,191$ 2,848,848$ (10,150,189)$ 46,659,850$ 3,870,836$
BUSINESS-TYPE DEBT
Revenue Bonds:
- - - - -
Utility sys bonds 2013 (1)0.38-4.00%12/1/2032 11,415,000 $335,000 - $785,000 7,680,000 - (515,000) 7,165,000 530,000
Utility sys refunding bonds 2020 (2010 Bonds)5% 12/1/2030 11,835,000 $950,000 - $1,450,000 11,835,000 - (950,000) 10,885,000 995,000
Utility sys bonds 2020 (1)4.00-5.00%12/1/2039 12,030,000 $175,000 - $895,000 11,855,000 - (395,000) 11,460,000 415,000
Total Revenue Bonds 35,280,000 31,370,000 - (1,860,000) 29,510,000 1,940,000
Employee Leave Benefits:
Compensated absences 584,171 512,726 (287,382) 809,515 564,977
Net Pension Liability 3,100,096 - (1,963,434) 1,136,662 -
Public Works Trust Fund & Drinking Water Loans:
PWTF 2001 0.50%7/1/2021 4,290,405 $227,086 227,086 - (227,086) - 0
PWTF 2002 1.00%7/1/2022 641,250 $26,114 52,229 - (26,114) 26,115 26,115
PWTF 2004 0.50%7/1/2024 2,049,036 $107,844 431,376 - (107,844) 323,532 107,844
PWTF 2006 0.50%7/1/2026 3,325,000 $180,418 1,082,508 - (180,418) 902,090 180,418
PWTF 2013 2.00%6/1/2032 3,325,000 $188,538 2,262,462 - (188,538) 2,073,924 188,538
DWSRF 2016⁽³⁾1.50% 10/1/2026 248,066 $30,262 181,574 - (30,262) 151,312 30,262
DWSRF 2020 1.75%10/1/2039 3,030,000 $5,999 113,982 - (5,999) 107,983 5,999
Total Public Works Trust Fund & Drinking Water Loans 16,908,757 4,351,217 - (766,262) 3,584,955 539,176
Premium Related to Debt 6,090,053 (468,969) 5,621,084 -
Total Proprietary 52,188,757$ 45,495,537$ 512,726$ (5,346,047)$ 40,662,216$ 3,044,153$
Total All Funds 79,647,817$ 99,456,728$ 3,361,574$ (15,496,236)$ 87,322,066$ 6,914,989$
(1) Subject to federal arbitrage compliance rules.
(2) The original amount is the amount authorized and issued with exception of the Utility System Bonds 2013 in which the authorized amount was $13,000,000 and the issued amount
was $11,415,000.
(3) The original authorized loan amount was reduced from $1,353,400 in concert with a reduction in project scope (limited to design costs only).
CHANGES IN LONG-TERM LIABILITIES
City of Auburn: 2021 Annual Comprehensive Financial Report Notes to the Financial Statements
79
Due to Other Governments
• SCORE Public Development Authority issued General Obligation bonds in 2009 to acquire, construct, improve, and equip a
consolidated correctional facility located in Des Moines, Washington. These bonds were subsequently refunded in December
2019 and will mature in 2038. The city is contracted to pay 34.94% of the debt service. This debt is paid from the General
fund.
Revenue Bond Debt Service Coverage
The required debt service coverage for the 2013 utility revenue, 2020 utility revenue, and 2020 utility revenue refunding
bonds is 1.25. Debt service coverage for 2021 was 3.17. The ratio indicates the direction and degree to which the revenue
stream exists to meet the current debt burden. The ratio is calculated by dividing the net revenue available by debt service
requirements.
The restricted rate stabilization fund for the utility revenue bonds was established to minimize the effect on rates of revenue
fluctuations between years. By transferring cash into this stabilization fund, adjusted net revenue available for debt service, as
defined, would be decreased by the amount of the transfer. Conversely, transfers out of the account would increase adjusted
net revenue available for debt service.
Estimated Arbitrage Rebate
The Federal Tax Reform Act of 1986 requires issuers of tax-exempt debt of over $5 million to make payments to the United
States Treasury of investment interest received at yields that exceed the issuer’s tax-exempt borrowing rates. Payments of
arbitrage rebate amounts due under these regulations must be made to the U.S. Treasury every five years. The City’s estimated
arbitrage rebate as of December 31, 2021 is $0 for its tax-exempt bond issues.
Interest Maturity Original Principal Balance Balance Due Within
Issue Name Rates Date Amount Installments 12/31/20 Additions Reductions 12/31/21 One Year
GOVERNMENTAL DEBT:
General Obligation Bonds:
SCORE Refunding Bonds 2019 3.00-5.00%12/1/2038 17,838,617 $637,655 - $1,325,973 17,200,962 - (642,896) 16,558,066 669,101
Total General Obligation Bonds
Due Other Governments 17,838,617$ 17,200,962$ -$ (642,896)$ 16,558,066$ 669,101$
CHANGES IN LONG-TERM LIABILITIES DUE TO OTHER GOVERNMENTS
Enterprise Governmental Funds Funds 12/31/21
Liabilities payable from restricted assets:
Revenue bonds 2,204,135$ -$ 2,204,135$
Long-term bonds payable:
General obligation bonds - 19,013,767 19,013,767
Capital lease - - -
Revenue bonds 27,305,865 - 27,305,865
Public Works Trust Fund loans 3,584,956 2,902,542 6,487,498
Due to Other Governments - 16,558,066 16,558,066
Employee leave benefits 809,515 3,712,317 4,521,832
Other Post Employment Benefits - 13,370,311 13,370,311
Net Pension Liability 1,136,662 1,026,840 2,163,502
Firemen's Pension Liability - 3,049,730 3,049,730
Premium 5,621,084 3,584,343 9,205,427
Total long-term debt 40,662,217$ 63,217,916$ 103,880,131$
LONG-TERM LIABILITIES RECONCILIATION
City of Auburn: 2021 Annual Comprehensive Financial Report Notes to the Financial Statements
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Note 9 – PENSION PLANS
The following table represents the aggregate pension amounts for all plans for the year 2021:
Aggregate Pension Amounts - All Plans
Pension liabilities $ (2,163,502)
Pension assets $ 47,989,556
Deferred outflows of resources $ 4,315,298
Deferred inflows of resources $ (36,561,004)
Pension expense/expenditures $ (8,795,153)
State Sponsored Pension Plans
Substantially all City full-time and qualifying part-time employees participate in one of the following statewide retirement
systems administered by the Washington State Department of Retirement Systems, under cost-sharing, multiple-employer public
employee defined benefit and defined contribution retirement plans. The state Legislature establishes, and amends, laws
pertaining to the creation and administration of all public retirement systems.
The Department of Retirement Systems (DRS), a department within the primary government of the State of Washington, issues
a publicly available Annual Comprehensive Financial Report that includes financial statements and required supplementary
information for each plan. The DRS Annual Comprehensive Financial Report may be obtained by writing to:
Department of Retirement Systems
Communications Unit
P.O. Box 48380
Olympia, WA 98540-8380
Or the DRS Annual Comprehensive Financial Report may be downloaded from the DRS website at www.drs.wa.gov.
Public Employees’ Retirement System (PERS)
PERS members include elected officials; state employees; employees of the Supreme, Appeals and Superior Courts; employees
of the legislature; employees of district and municipal courts; employees of local governments; and higher education employees
not participating in higher education retirement programs. PERS is comprised of three separate pension plans for membership
purposes. PERS plans 1 and 2 are defined benefit plans, and PERS plan 3 is a defined benefit plan with a defined contribution
component.
PERS Plan 1 provides retirement, disability and death benefits. Retirement benefits are determined as two percent of the
member’s average final compensation (AFC) times the member’s years of service. The AFC is the average of the member’s 24
highest consecutive service months. Members are eligible for retirement from active status at any age with at least 30 years of
service, at age 55 with at least 25 years of service, or at age 60 with at least five years of service. Members retiring from active
status prior to the age of 65 may receive actuarially reduced benefits. Retirement benefits are actuarially reduced to reflect the
choice of a survivor benefit. Other benefits include duty and non-duty disability payments, an optional cost-of-living adjustment
(COLA), and a one-time duty-related death benefit, if found eligible by the Department of Labor and Industries. PERS 1 members
were vested after the completion of five years of eligible service. The plan was closed to new entrants on September 30, 1977.
City of Auburn: 2021 Annual Comprehensive Financial Report Notes to the Financial Statements
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Contributions
The PERS Plan 1 member contribution rate is established by State statute at 6 percent. The employer contribution rate is
developed by the Office of the State Actuary and includes an administrative expense component that is currently set at 0.18
percent. Each biennium, the state Pension Funding Council adopts Plan 1 employer contribution rates. The PERS Plan 1 required
contribution rates (expressed as a percentage of covered payroll) for 2021 were as follows:
PERS Plan 1
Actual Contribution Rates: Employer Employee*
January – June 2021:
PERS Plan 1 7.92% 6.00%
PERS Plan 1 UAAL 4.87%
Administrative Fee 0.18%
Total 12.97% 6.00%
July – December 2021:
PERS Plan 1 6.36% 6.00%
PERS Plan 1 UAAL 3.71%
Administrative Fee 0.18%
Total 10.25% 6.00%
* For employees participating in JBM, the contribution rate was 12.26%.
PERS Plan 2/3 provides retirement, disability and death benefits. Retirement benefits are determined as two percent of the
member’s average final compensation (AFC) times the member’s years of service for Plan 2 and 1 percent of AFC for Plan 3.
The AFC is the average of the member’s 60 highest-paid consecutive service months. There is no cap on years of service credit.
Members are eligible for retirement with a full benefit at 65 with at least five years of service credit. Retirement before age 65
is considered an early retirement. PERS Plan 2/3 members who have at least 20 years of service credit and are 55 years of age
or older, are eligible for early retirement with a benefit that is reduced by a factor that varies according to age for each year
before age 65. PERS Plan 2/3 members who have 30 or more years of service credit and are at least 55 years old can retire
under one of two provisions:
• With a benefit that is reduced by three percent for each year before age 65; or
• With a benefit that has a smaller (or no) reduction (depending on age) that imposes stricter return-to-work rules.
PERS Plan 2/3 members hired on or after May 1, 2013 have the option to retire early by accepting a reduction of five percent
for each year of retirement before age 65. This option is available only to those who are age 55 or older and have at least 30
years of service credit. PERS Plan 2/3 retirement benefits are also actuarially reduced to reflect the choice of a survivor benefit.
Other PERS Plan 2/3 benefits include duty and non-duty disability payments, a cost-of-living allowance (based on the CPI),
capped at three percent annually and a one-time duty related death benefit, if found eligible by the Department of Labor and
Industries. PERS 2 members are vested after completing five years of eligible service. Plan 3 members are vested in the defined
benefit portion of their plan after ten years of service; or after five years of service if 12 months of that service are earned after
age 44.
PERS Plan 3 defined contribution benefits are totally dependent on employee contributions and investment earnings on those
contributions. PERS Plan 3 members choose their contribution rate upon joining membership and have a chance to change
rates upon changing employers. As established by statute, Plan 3 required defined contribution rates are set at a minimum of 5
percent and escalate to 15 percent with a choice of six options. Employers do not contribute to the defined contribution
benefits. PERS Plan 3 members are immediately vested in the defined contribution portion of their plan.
City of Auburn: 2021 Annual Comprehensive Financial Report Notes to the Financial Statements
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Contributions
The PERS Plan 2/3 employer and employee contribution rates are developed by the Office of the State Actuary to fully fund
Plan 2 and the defined benefit portion of Plan 3. The Plan 2/3 employer rates include a component to address the PERS Plan
1 UAAL and an administrative expense that is currently set at 0.18 percent. Each biennium, the state Pension Funding Council
adopts Plan 2 employer and employee contribution rates and Plan 3 contribution rates. The PERS Plan 2/3 required contribution
rates (expressed as a percentage of covered payroll) for 2021 were as follows:
PERS Plan 2/3
Actual Contribution Rates: Employer 2/3 Employee 2*
January – June 2021:
PERS Plan 2/3 7.92% 7.90%
PERS Plan 1 UAAL 4.87%
Administrative Fee 0.18%
Employee PERS Plan 3 Varies
Total 12.97% 7.90%
July – December 2021:
PERS Plan 2/3 6.36% 6.36%
PERS Plan 1 UAAL 3.71%
Administrative Fee 0.18%
Employee PERS Plan 3 Varies
Total 10.25% 6.36%
* For employees participating in JBM, the contribution rate was 19.75% January 1 – June 30, 2021; then the rate
changed to 15.90% for the period of July 1 – December 31, 2021.
The City’s actual PERS plan contributions were $1,205,178 to PERS Plan 1 and $2,005,971 to PERS Plan 2/3 for the year ended
December 31, 2021.
Law Enforcement Officers’ and Fire Fighters’ Retirement System (LEOFF)
LEOFF membership includes all full-time, fully compensated, local law enforcement commissioned officers, firefighters, and as
of July 24, 2005, emergency medical technicians. LEOFF is comprised of two separate defined benefit plans.
LEOFF Plan 1 provides retirement, disability and death benefits. Retirement benefits are determined per year of service
calculated as a percent of final average salary (FAS) as follows:
• 20+ years of service – 2.0% of FAS
• 10-19 years of service – 1.5% of FAS
• 5-9 years of service – 1% of FAS
The FAS is the basic monthly salary received at the time of retirement, provided a member has held the same position or rank
for 12 months preceding the date of retirement. Otherwise, it is the average of the highest consecutive 24 months’ salary within
the last ten years of service. Members are eligible for retirement with five years of service at the age of 50. Other benefits
include duty and non-duty disability payments, a cost-of living adjustment (COLA), and a one-time duty-related death benefit,
if found eligible by the Department of Labor and Industries. LEOFF 1 members were vested after the completion of five years
of eligible service. The plan was closed to new entrants on September 30, 1977.
City of Auburn: 2021 Annual Comprehensive Financial Report Notes to the Financial Statements
83
Contributions
Starting on July 1, 2000, LEOFF Plan 1 employers and employees contribute zero percent, as long as the plan remains fully
funded. The LEOFF Plan I had no required employer or employee contributions for fiscal year 2020. Employers paid only the
administrative expense of 0.18 percent of covered payroll.
LEOFF Plan 2 provides retirement, disability and death benefits. Retirement benefits are determined as two percent of the final
average salary (FAS) per year of service (the FAS is based on the highest consecutive 60 months). Members are eligible for
retirement with a full benefit at 53 with at least five years of service credit. Members who retire prior to the age of 53 receive
reduced benefits. If the member has at least 20 years of service and is age 50, the reduction is three percent for each year prior
to age 53. Otherwise, the benefits are actuarially reduced for each year prior to age 53. LEOFF 2 retirement benefits are also
actuarially reduced to reflect the choice of a survivor benefit. Other benefits include duty and non-duty disability payments, a
cost-of-living allowance (based on the CPI), capped at three percent annually and a one-time duty-related death benefit, if
found eligible by the Department of Labor and Industries. LEOFF 2 members are vested after the completion of five years of
eligible service.
Contributions
The LEOFF Plan 2 employer and employee contribution rates are developed by the Office of the State Actuary to fully fund
Plan 2. The employer rate included an administrative expense component set at 0.18 percent. Plan 2 employers and employees
are required to pay at the level adopted by the LEOFF Plan 2 Retirement Board.
Effective July 1, 2017, when a LEOFF employer charges a fee or recovers costs for services rendered by a LEOFF 2 member to a
non-LEOFF employer, the LEOFF employer must cover both the employer and state contributions on the LEOFF 2 basic salary
earned for those services. The state contribution rate (expressed as a percentage of covered payroll) was 3.44% from January
1 through June 30, 2020, and 3.41% from July 1 through December 31, 2021.
The LEOFF Plan 2 required contribution rates (expressed as a percentage of covered payroll) for 2021 were as follows:
LEOFF Plan 2
Actual Contribution Rates: Employer Employee
January – June 2021
State and local governments 5.15% 8.59%
Administrative Fee 0.18%
Total 5.33% 8.59%
July – December 2021
State and local governments 5.12% 8.53%
Administrative Fee 0.18%
Total 5.30% 8.53%
The City’s actual contributions to the plan were $756,576 for the year ended December 31, 2021.
City of Auburn: 2021 Annual Comprehensive Financial Report Notes to the Financial Statements
84
The Legislature, by means of a special funding arrangement, appropriates money from the state General Fund to supplement
the current service liability and fund the prior service costs of Plan 2 in accordance with the recommendations of the Pension
Funding Council and the LEOFF Plan 2 Retirement Board. This special funding situation is not mandated by the state constitution
and could be changed by statute. For the state fiscal year ending June 30, 2021, the state contributed $78,170,320 to LEOFF
Plan 2. The amount recognized by the City as its proportionate share of this amount is $488,070.
Actuarial Assumptions
The total pension liability (TPL) for each of the DRS plans was determined using the most recent actuarial valuation completed
in 2021 with a valuation date of June 30, 2020. The actuarial assumptions used in the valuation were based on the results of
the Office of the State Actuary’s (OSA) 2013-2018 Demographic Experience Study and the 2019 Economic Experience Study.
Additional assumptions for subsequent events and law changes are current as of the 2020 actuarial valuation report. The TPL
was calculated as of the valuation date and rolled forward to the measurement date of June 30, 2021. Plan liabilities were
rolled forward from June 30, 2020, to June 30, 2021, reflecting each plan’s normal cost (using the entry-age cost method),
assumed interest and actual benefit payments.
• Inflation: 2.75% total economic inflation; 3.50% salary inflation
• Salary increases: In addition to the base 3.50% salary inflation assumption, salaries are also expected to grow by
promotions and longevity.
• Investment rate of return: 7.4%
Mortality rates were developed using the Society of Actuaries’ Pub. H-2010 mortality rates, which vary by member status, as
the base table. The OSA applied age offsets for each system, as appropriate, to better tailor the mortality rates to the
demographics of each plan. OSA applied the long-term MP-2017 generational improvement scale, also developed by the
Society of Actuaries, to project mortality rates for every year after the 2010 base table. Mortality rates are applied on a
generational basis; meaning, each member is assumed to receive additional mortality improvements in each future year
throughout his or her lifetime.
There were a few changes in methods and no changes in assumptions since the last valuation.
• For purposes of the June 30, 2020 AVR, a non-contribution rate setting valuation under current funding policy, OSA
introduced temporary method changes to produce asset and liability measures as of the valuation date. OSA will revert
back to the methods outlined in their 2019 AVR when preparing the 2021 AVR, a contribution rate-setting valuation,
which will serve as the basis for 2022 ACFR results.
• To produce measures at June 30, 2020, unless otherwise noted in the 2020 AVR OSA relied on the same data, assets,
methods, and assumptions as the June 30, 2019, AVR. OSA projected the data forward one year reflecting assumed
new hires and current members exiting the plan as expected. OSA estimated June 30, 2020, assets by relying on the
Fiscal Year (FY)-end 2019 assets, reflecting actual investment performance over FY 2020, and reflecting assumed
contribution amounts and benefit payments during FY 2020. OSA reviewed the actual June 30, 2020, participant and
financial data to determine if any material changes to their projection assumptions where necessary. OSA also considered
any material impacts to the plans from 2021 legislation. See leg.wa.gov/osa for more information regarding the methods
and assumptions used.
Discount Rate
The discount rate used to measure the total pension liability for all DRS plans was 7.4 percent.
City of Auburn: 2021 Annual Comprehensive Financial Report Notes to the Financial Statements
85
To determine that rate, an asset sufficiency test was completed to test whether each pension plan’s fiduciary net position was
sufficient to make all projected future benefit payments for current plan members. Based on OSA’s assumptions, the pension
plans’ fiduciary net position was projected to be available to make all projected future benefit payments of current plan
members. Therefore, the long-term expected rate of return of 7.4 percent was used to determine the total liability.
Long-Term Expected Rate of Return
The long-term expected rate of return on the DRS pension plan investments of 7.4 percent was determined using a building-
block-method. In selecting this assumption, the Office of the State Actuary (OSA) reviewed the historical experience data,
considered the historical conditions that produced past annual investment returns, and considered Capital Market Assumptions
(CMA’s) and simulated expected investment returns provided by the Washington State Investment Board (WSIB). The WSIB
uses the CMA’s and their target asset allocation to simulate future investment returns at various future times.
Estimated Rates of Return by Asset Class
Best estimates of arithmetic real rates of return for each major asset class included in the pension plan’s target asset allocation as
of June 30, 2021, are summarized in the table below. The inflation component used to create the table is 2.2 percent and
represents the WSIB’s most recent long-term estimate of broad economic inflation.
Asset Class
Target Allocation
% Long-Term Expected
Real Rate of Return
Arithmetic
Fixed Income 20% 2.20%
Tangible Assets 7% 5.10%
Real Estate 18% 5.80%
Global Equity 32% 6.30%
Private Equity 23% 9.30%
100%
Sensitivity of Net Pension Liability/(Asset)
The table below presents the City’s proportionate share of the net pension liability calculated using the discount rate of 7.4
percent, as well as what the City’s proportionate share of the net pension liability would be if it were calculated using a discount
rate that is 1-percentage point lower (6.4 percent) or 1-percentage point higher (8.4 percent) than the current rate.
1% Decrease
(6.40%)
Current Discount
Rate
(7.40%)
1% Increase
(8.40%)
PERS 1 $ 3,685,647 $ 2,163,502 $ 836,034
PERS 2/3 (6,457,826) (22,668,538) (36,018,066)
LEOFF 1 (2,949,576) (3,276,345) (3,559,055)
LEOFF 2 $ (13,901,387) $ (22,044,674) $ (28,712,401)
Pension Plan Fiduciary Net Position
Detailed information about the State’s pension plans’ fiduciary net position is available in the separately issued DRS financial
report.
City of Auburn: 2021 Annual Comprehensive Financial Report Notes to the Financial Statements
86
Pension Liabilities (Assets), Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to
Pensions
At June 30, 2021, the City reported its proportionate share of net pension liabilities as follows:
Liability (Asset)
PERS 1 $ 2,163,502
PERS 2/3 (22,668,538)
LEOFF 1 (3,276,345)
LEOFF 2 $ (22,044,674)
The amount of the asset reported above for LEOFF Plans 1 and 2 reflects a reduction for State pension support provided to the
City. The amount recognized by the City as its proportionate share of the net pension asset, the related State support, and the
total portion of the net pension asset that was associated with the City were as follows:
LEOFF 1 Asset LEOFF 2 Asset
Employer’s proportionate share
$ (3,276,345)
$ (22,044,674)
State’s proportionate share of
the net pension asset associated
with the employer
(22,161,113)
(14,221,221)
TOTAL $(25,437,457) $(36,265,895)
At June 30, the City’s proportionate share of the collective net pension liabilities was as follows:
Proportionate
Share 6/30/20
Proportionate Share
6/30/21
Change in
Proportion
PERS 1 0.176594% 0.177157% (0.000563)%
PERS 2/3 0.229959% 0.227559% (0.002400)%
LEOFF 1 0.096208% 0.095644% (0.000564)%
LEOFF 2 0.374857% 0.379530% (0.004673)%
Employer contribution transmittals received and processed by the DRS for the fiscal year ended June 30 are used as the basis
for determining each employer’s proportionate share of the collective pension amounts reported by the DRS in the Schedules
of Employer and Nonemployer Allocations for all plans except LEOFF 1.
LEOFF Plan 1 allocation percentages are based on the total historical employer contributions to LEOFF 1 from 1971 through
2000 and the retirement benefit payments in fiscal year 2021. Historical data was obtained from a 2011 study by the Office of
the State Actuary (OSA). In fiscal year 2021, the state of Washington contributed 87.12 percent of LEOFF 1 employer
contributions and all other employers contributed the remaining 12.88 percent of employer contributions. LEOFF 1 is fully
funded and no further employer contributions have been required since June 2000. If the plan becomes underfunded, funding
of the remaining liability will require new legislation. The allocation method the plan chose reflects the projected long-term
contribution effort based on historical data.
In fiscal year 2021, the state of Washington contributed 39 percent of LEOFF 2 employer contributions pursuant to RCW
41.26.725 and all other employers contributed the remaining 61 percent of employer contributions.
The collective net pension liability (asset) was measured as of June 30, 2021, and the actuarial valuation date on which the total
pension liability (asset) is based was as of June 30, 2020, with update procedures used to roll forward the total pension liability
to the measurement date.
City of Auburn: 2021 Annual Comprehensive Financial Report Notes to the Financial Statements
87
Pension Expense
For the year ended December 31, 2021, the City recognized pension expense as follows:
Pension Expense
PERS 1 $ (377,307)
PERS 2/3 (5,193,688)
LEOFF 1 (477,328)
LEOFF 2 (2,746,829)
TOTAL $ (8,795,153)
Deferred Outflows of Resources and Deferred Inflows of Resources
At December 31, 2021, the City reported deferred outflows of resources and deferred inflows of resources related to pensions
from the following sources:
PERS 1 Deferred Outflows
of Resources
Deferred Inflows of
Resources
Differences between expected and actual experience $ $
Net difference between projected and actual investment
earnings on pension plan investments
(2,400,763)
Changes of assumptions
Changes in proportion and differences between
contributions and proportionate share of contributions
Contributions subsequent to the measurement date 522,016
TOTAL $ 522,016 $ (2,400,763)
PERS 2/3 Deferred Outflows
of Resources
Deferred Inflows of
Resources
Differences between expected and actual experience $ 1,100,978 $ (277,894)
Net difference between projected and actual investment
earnings on pension plan investments
(18,945,580)
Changes of assumptions 33,126 (1,609,841)
Changes in proportion and differences between
contributions and proportionate share of contributions
9,567
(296,798)
Contributions subsequent to the measurement date 894,887
TOTAL $ 2,038,558 $ (21,130,114)
LEOFF 1 Deferred Outflows
of Resources
Deferred Inflows of
Resources
Differences between expected and actual experience $ $
Net difference between projected and actual investment
earnings on pension plan investments
(1,001,125)
Changes of assumptions
Changes in proportion and differences between
contributions and proportionate share of contributions
Contributions subsequent to the measurement date
TOTAL $ $ (1,001,125)
City of Auburn: 2021 Annual Comprehensive Financial Report Notes to the Financial Statements
88
LEOFF 2 Deferred Outflows
of Resources
Deferred Inflows of
Resources
Differences between expected and actual experience $ 999,862 $ (116,504)
Net difference between projected and actual investment
earnings on pension plan investments
(10,511,059)
Changes of assumptions 9,529 (1,048,446)
Changes in proportion and differences between
contributions and proportionate share of contributions
365,615
(352,993)
Contributions subsequent to the measurement date 379,717
TOTAL $ 1,754,723 $ (12,029,002)
Deferred outflows of resources related to pensions resulting from the City’s contributions subsequent to the measurement date
will be recognized as a reduction of the net pension liability in the year ended December 31, 2022. Other amounts reported
as deferred outflows and deferred inflows of resources related to pensions will be recognized in pension expense as follows:
Year ended PERS 1 PERS 2/3 LEOFF 1 LEOFF 2
December 31
2022 $ (635,962) $ (5,245,586) $ (265,935) $ (2,816,157)
2023 (582,773) (4,905,196) (243,246) (2,624,974)
2024 (551,035) (4,698,065) (229,525) (2,480,527)
2025 (630,992) (5,047,011) (262,419) (2,791,592)
2026 - (94,552) - (50,548)
Thereafter $ - $ 3,967 $ - $ 109,802
City of Auburn Fire Relief and Pension Plan
The City is the administrator of the Firemen’s Pension Plan (Plan), which is a closed, single-employer defined benefit pension
plan that was established in conformance with RCW Chapters 41.16 and 41.18. This plan provides retirement and disability
benefits, annual cost-of-living adjustments, and death benefits to plan members and beneficiaries. Membership is limited to
firefighters employed prior to March 1, 1970 when the LEOFF retirement system was established. The City’s obligation under
the Firemen’s Pension Plan consists of paying all benefits, including payments to beneficiaries and healthcare, for firefighters
who retired prior to March 1, 1970, and excess pension and healthcare benefits of LEOFF for covered firefighters who retired
after March 1, 1970. Benefits and refunds of the defined benefit pension plan are recognized when due and payable in
accordance with the Plan. The Plan does not issue a separate financial report. Membership of the Firemen’s Pension Plan
consisted of 13 eligible inactive employees or their beneficiaries, of which 11 received city paid benefits. There are no active
employees in this plan.
Under state law, the Firemen’s Pension Plan is provided an allocation of 25% of all monies received by the state from taxes on
fire insurance premiums (which is not considered a special funding situation), interest earnings, member contributions made
prior to the inception of LEOFF, and City contributions required to meet projected future pension obligations. In 2021, $98,371
was received from the state from taxes on fire insurance premiums, and $19,570 was received from interest earnings. On-behalf
payments of fringe benefits and salaries for the City’s employees were recognized as revenues and expenditures/expenses during
the period. Administrative costs, such as City staff time and actuarial valuation costs are funded from interest earnings or City
contributions.
The City has determined that GASB Statement No. 67 – Financial Reporting for Pension Plans; an amendment of GASB Statement
No. 25 does not apply to the City’s single-employer Fire Relief and Pension Fund as there are no assets accumulated in a
qualifying trust and it does not meet the criteria applicability set by the statement as the contributions to that fund are not
irrevocable. Plan assets may be used to cover medical expenses which are outside of the scope of the pension plan benefits.
Therefore, the Fire Relief and Pension Fund has been presented in conformance with GASB Statement No. 73 – Accounting and
City of Auburn: 2021 Annual Comprehensive Financial Report Notes to the Financial Statements
89
Financial Reporting for Pensions and Related Assets That Are Not within the Scope of GASB Statement 68, and Amendments to
Certain Provisions of GASB Statements 67 and 68.
The following table represents the plan aggregate pension amounts for 2021:
Aggregate Pension Amounts – Fire Relief and Pension Plan
Pension liabilities $ (3,049,730)
Deferred outflows of resources $ 0
Deferred inflows of resources $ 0
Pension expense/expenditures $ (425,607)
Service Retirement Benefit
The amount of a members benefit is based upon the rank of the firefighter at the time of retirement and amounts to 50% of
salary plus an additional 2% for each year of service in excess of 25 years, to a maximum benefit of 60% of salary. An annual
post-retirement increase is determined based upon 2 factors:
• escalation by salary in proportion to the current salary of rank from which the firefighter retired (RCW 41.18.040), and
• increase proportionate to the annual increase in the Seattle-area CPI and regardless of the increase (or decrease) in the
CPI, the benefits are increased at least 2% each year. (RCW 41.18.104)
Assumptions and Other Inputs to the Total Pension Liability
GASB Statement 73 requires a schedule of changes in Total Pension Liability from year to year. Both the December 31, 2020
and the December 31, 2021 amounts are based on the below specified actuarial valuation (the valuation date) and then projected
forward to the measurement date. The measurement date is the date as of which the total pension liability is determined.
The discount rate and other key actuarial assumptions utilized are noted below:
Fire Relief and Pension Plan December 31, 2020 December 31, 2021
Discount Rate – municipal bond rate (average rating
AA/Aa or higher)
2.00%
2.00%
Valuation Date January 1, 2019 January 1, 2021
Measurement Date December 31, 2020 December 31, 2021
Inflation 2.25% 2.25%
Salary Increases Including Inflation 3.25% 3.25%
Mortality RP-2000 Mortality
Table (combined
healthy) with
generational
projection using
100% of Projection
Scale BB
RP-2010 Safety
Mortality Table
(headcount-weighted)
with generational
projection using the
ultimate rates in
Projection Scale MP-
2017
Actuarial Cost Method Entry Age Normal Entry Age Normal
City of Auburn: 2021 Annual Comprehensive Financial Report Notes to the Financial Statements
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Total Pension Liability
The following table represents the changes in the total pension liability for 2021:
Fire Relief and Pension Plan Increase (Decrease)
Total Pension Liability
Balances as of December 31, 2020 $ 3,562,986
Changes for the year:
Service cost 0
Interest on total pension liability 69,409
Effect of plan changes 0
Effect of economic/demographic gains or
losses
(534,707)
Effect of assumptions, changes or inputs 138,062
Benefit payments * (186,020)
Balances as of December 31, 2021 $ 3,049,730
* Benefit payments are estimated based on expected payouts.
Sensitivity Analysis
The following table presents the total pension liability of the City, calculated using the discount rate of 2.00%, as well as what
the City’s total pension liability would be if it were calculated using a discount rate that is 1 percentage point lower (1.00%) or
1 percentage point higher (3.00%) than the current rate.
1% Decrease
(1.00%)
Current Discount
Rate
(2.00%)
1% Increase
(3.00%)
$ 3,372,349 $ 3,049,730 $ 2,774,039
Pension Expense
The amount of pension expense recognized by the City for the reporting period is as follows:
Fire Relief and Pension Plan January 1, 2020 to
December 31, 2020
January 1, 2021 to
December 31, 2021
Service Cost $ 0 $ 0
Interest on Total Pension Liability 91,863 69,409
Effect of Plan Changes 0 0
Contributions From State Fire Insurance Premium Tax (85,819) (98,371)
Recognition of Deferred Inflows/Outflows of
Resources:
Recognition of Economic/Demographic Gains/Losses 0 (534,707)
Recognition of Assumption Changes or Inputs 244,126 138,062
Pension Expense $ 250,170 $ (425,607)
City of Auburn: 2021 Annual Comprehensive Financial Report Notes to the Financial Statements
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Deferred Outflows/Inflows of Resources
As of December 31, 2021, the deferred outflows and inflows of resources are as follows:
Fire Relief and Pension Plan Deferred Outflows
of Resources
Deferred Inflows of
Resources
Differences between expected and actual experience $ 0 $ 0
Changes of assumptions 0 0
Contributions subsequent to the measurement date 0 0
TOTAL $ 0 $ 0
Amounts currently reported as deferred outflows of resources and deferred inflows of resources related to pensions will be
recognized in pension expense as follows:
Year ended December 31:
2022 $0
2023 0
2024 0
2025 0
2026 0
Thereafter 0
NOTE 10 – OTHER POST-EMPLOYMENT BENEFITS
The following table represents the aggregate OPEB amounts for all plans subject to the requirements of GASB Statement 75 for
the year 2021:
Aggregate OPEB Amounts
OPEB Liabilities $ 13,370,311
OPEB Assets $ 0
Deferred outflows of resources $ 0
Deferred inflows of resources $ 0
OPEB expense/expenditures $ (851,421)
Plan Description
The city is the administrator of the Law Enforcement Officer and Fire Fighter(LEOFF) 1 employees plan providing lifetime
medical care. The plan is a single employer, defined benefit, other post-employment benefit plan (OPEB). The plan does not
issue a separate standalone financial report.
Benefits Provided
Effective March 1, 1970, the LEOFF plan was established by the Legislature under Revised Code of Washington (RCW) Chapter
41.26. LEOFF members who joined the system by September 30, 1977 are Plan 1 members. In addition, the City is required to
pay post-employment benefits in accordance with RCW Chapter 41.16; all medical and long term care as long as a disability
exists are covered for any active firefighter hired prior to March 1, 1970. For any retired firefighter hired prior to March 1, 1970,
medical and long term care are covered at the discretion of the Retirement Board. Members retired prior to 1961 for reasons
other than duty disability are not eligible for medical benefits during retirement.
City of Auburn: 2021 Annual Comprehensive Financial Report Notes to the Financial Statements
92
The City OPEB plan provides medical, prescription drug, dental, Medicare Part B premiums, long-term care, and vision expenses
for retirees. The plan does not cover dependent spouses and children. The City’s cost is reduced by any amounts retirees
receive from Medicare or other health plans.
Funding Policy
The plan is funded on a pay-as-you-go basis from the General Fund and there are no assets accumulated in a qualifying trust.
Membership
As of December 31, 2021, there are 35 retirees and 0 active employees meeting the eligibility requirements of a LEOFF 1 member.
This is considered a closed group with no new members.
Retirees currently receiving benefits 35
Retirees entitled to but not yet receiving benefits 0
Active employees 0
Total 35
OPEB Liability
The Valuation Date is January 1, 2021. This is the date as of which the actuarial valuation was performed. The Measurement
Date is December 31, 2021. This is the date as of which the total OPEB liability under GASB 75 is determined. The Reporting
Date is the Plan’s and City’s fiscal year ending date. Update procedures were used to roll forward the total OPEB liability to
the measurement date.
Assumptions and Other Inputs
A number of assumptions are used in development of the OPEB plan actuarial valuation as discussed below.
GASB 75 requires the discount rate used to measure the Total OPEB Liability (the Actuarial Accrued Liability calculated using the
Individual Entry Age Normal Cost Method) to be a yield or index rate for 20-year, tax exempt general obligation municipal
bonds with an average rating of AA/Aa or higher. The Bond Buyer General Obligation 20-bond municipal bond index for
bonds that mature in 20 years is 2.06% as of December 31, 2021. Rounding this to the nearest ¼% results in a discount rate
of 2.00% as of the December 31, 2021 measurement date.
A medical (healthcare) and dental trend rate of 4.70% along with a long-term care inflation rate of 4.5%.
Mortality assumptions are based on the Pub-2010 Safety Mortality Table (headcount-weighted) with generational projection
using the ultimate rates in Projection Scale MP-2017, with ages set back one year for males. For disabled members, mortality
assumptions are based on Pub-2010 Safety Disability Mortality Table with generational projection using the ultimate rates in
Projection Scale MP-2017.
Sensitivity Analysis
The following presents the total OPEB liability of the City, calculated using the current healthcare cost trend rates as well as
what the City’s total OPEB liability would be if it were calculated using trend rates that are one percentage point lower or one
percentage point higher than the current trend rates.
1% Decrease
Current Trend Rate
1% Increase
Total December 31, 2021
OPEB Liability
$ 11,950,583
$ 13,370,311
$ 15,024,684
City of Auburn: 2021 Annual Comprehensive Financial Report Notes to the Financial Statements
93
The following presents the total OPEB liability of the City calculated using the discount rate of 2.00%, as well as what the
City’s total OPEB liability would be if it were calculated using a discount rate that is one percentage point lower (1.00%) or
one percentage point higher (3.00%) than the current rate.
1% Decrease
Current Discount
Rate
1% Increase
Total December 31, 2021
OPEB Liability
$ 15,139,944
$ 13,370,311
$ 11,896,566
The following table represents the changes in total OPEB liability for 2021:
OPEB LEOFF Plan 1 Increase (Decrease)
Total OPEB Liability
Balance as of December 31, 2020 $ 14,784,873
Changes for the Year:
Service Cost 0
Interest on Total OPEB Liability 290,093
Effect of Plan Changes 0
Effect of Economic/Demographic Gains or
Losses
(704,125)
Effect of Assumptions, Changes or Inputs (437,389)
Expected Benefit Payments (563,141)
Balance as of December 31, 2021 $ 13,370,311
For the year ended December 31, 2021, the City recognized an OPEB expense of $ (851,421).
Changes in assumptions that affected measurement of the total OPEB liability since the prior measurement date include changes
in premiums and claims, mortality, and trends.
The City reported no deferred outflows of resources and no deferred inflows of resources related to OPEB.
NOTE 11 – ASSOCIATION OF WASHINGTON CITIES EMPLOYEE BENEFIT TRUST (“Trust”)
Trust Description
The City of Auburn is a member of the Association of Washington Cities Employee Benefit Trust Health Care Program (AWC
Trust HCP). Chapter 48.62 RCW provides that two or more local government entities may, by Interlocal agreement under
Chapter 39.34 RCW, form together or join a pool or organization for the joint purchasing of insurance, and/or joint self-
insurance, to the same extent that they may individually purchase insurance or self-insure.
An agreement to form a pooling arrangement was made pursuant to the provisions of Chapter 39.34 RCW, the Interlocal
Cooperation Act. The AWC Trust HCP was formed on January 1, 2014 when participating cities, towns, and non-city entities
of the AWC Employee Benefit Trust in the State of Washington joined together by signing an Interlocal Governmental
Agreement to jointly self-insure certain health benefit plans and programs for participating employees, their covered
dependents and other beneficiaries through a designated account within the Trust.
As of December 31, 2020, 262 cities/towns/non-city entities participate in the AWC Trust HCP.
City of Auburn: 2021 Annual Comprehensive Financial Report Notes to the Financial Statements
94
The AWC Trust HCP allows members to establish a program of joint insurance and provides health and welfare services
to all participating members.
In April 2020, the Board of Trustees adopted a large employer policy, requiring newly enrolling groups with 600 or more
employees to submit medical claims experience data in order to receive a quote for medical coverage. Outside of this, the
AWC Trust HCP pools claims without regard to individual member experience. The pool is actuarially rated each year with
the assumption of projected claims run-out for all current members.
The AWC Trust HCP includes medical, dental and vision insurance through the following carriers: Kaiser Foundation Health
Plan of Washington, Kaiser Foundation Health Plan of Washington Options, Inc., Regence BlueShield, Asuris Northwest Health,
Delta Dental of Washington, and Vision Service Plan. Eligible members are cities and towns within the state of Washington.
Non-City Entities (public agency, public corporation, intergovernmental agency, or political subdivision within the state of
Washington) are eligible to apply for coverage into the AWC Trust HCP, submitting application to the Board of Trustees for
review as required in the Trust Agreement.
Participating employers pay monthly premiums to the AWC Trust HCP. The AWC Trust HCP is responsible for payment of all
covered claims. In 2020, the AWC Trust HCP purchased stop loss insurance for Regence/Asuris plans at an individual stop loss
(ISL) of $1.5 million through Commencement Bay Risk Management, and Kaiser ISL at $1 million with Companion Life through
ASG Risk Management. The aggregate policy is for 200% of expected medical claims.
Participating employers contract to remain in the AWC Trust HCP for a minimum of three years. Participating employers with
over 250 employees must provide written notice of termination of all coverage a minimum of 12 months in advance of the
termination date, and participating employers with under 250 employees must provide written notice of termination of all
coverage a minimum of 6 months in advance of termination date.
When all coverage is being terminated, termination will only occur on December 31. Participating employers terminating
a group or line of coverage must notify the AWC Trust HCP a minimum of 60 days prior to termination. A participating
employer’s termination will not obligate that member to past debts, or further contributions to the AWC Trust HCP.
Similarly, the terminating member forfeits all rights and interest to the AWC Trust HCP account.
The operations of the Health Care Program are managed by the Board of Trustees or its delegates. The Board of Trustees is
comprised of four regionally elected officials from Trust member cities or towns, the Employee Benefit Advisory Committee
Chair and Vice Chair, and two appointed individuals from the AWC Board of Directors, who are from Trust member cities or
towns. The Trustees or its appointed delegates review and analyze Health Care Program related matters and make operational
decisions regarding premium contributions, reserves, plan options and benefits in compliance with Chapter 48.62 RCW. The
Board of Trustees has decision authority consistent with the Trust Agreement, Health Care Program policies, Chapter
48.62 RCW and Chapter 200-110-WAC.
The accounting records of the AWC Trust HCP are maintained in accordance with methods prescribed by the State Auditor’s
office under the authority of Chapter 43.09 RCW. The AWC Trust HCP also follows applicable accounting standards established
by the Governmental Accounting Standards Board (“GASB”). In 2018, the retiree medical plan subsidy was eliminated, and is
noted as such in the report for the fiscal year ending December 31, 2018. Year-end financial reporting is done on an accrual
basis and submitted to the Office of the State Auditor as required by Chapter 200-110 WAC. The audit report for the AWC
Trust HCP is available from the Washington State Auditor’s office.
City of Auburn: 2021 Annual Comprehensive Financial Report Notes to the Financial Statements
95
NOTE 12 – CONSTRUCTION COMMITMENTS
At December 31, 2021, the City had the following contractual obligations on construction projects:
NOTE 13 – CEMETERY ENDOWED CARE FUND
The City maintains one permanent fund known as the cemetery endowed care fund. Paid into this fund is 10% of the
base, pre-tax sales price of each grave, niche or crypt. This fund is irreducible in principal and no part of the income of
this fund shall ever be used for purposes other than those specified upon the creation of the fund.
RCW 68.44.020 restricts the use of endowment net appreciation to endowment care “stipulated in the instrument by
which the fund was established”. For the City, the instrument that established the fund is Auburn City Code section
3.04.080, and section 3.040.120 governs the use of the fund.
ACC 3.04.120 restricts net interest or income from investments to the care of the lots and in the improvement or
embellishment of the cemetery or the erection or preservation of any buildings or structures, fences or walks, or for the
repair, preservation, erection or renewal of any tomb, monument, grave, stone, fence, railing or other erection in or
around the cemetery. The funds may also be used for planting and cultivating trees, shrubs, flowers or plants in or
around the cemetery. All expenditures of income from the fund must first be authorized by the City Council.
For 2021, of the $2,010 net appreciation on investments, all was available for expenditures. Amounts that are available
for expenditure are reflected as assigned fund balance.
NOTE 14 – JOINT VENTURES / RELATED PARTY
Valley Communications Center
The “Valley Communications Center” was established August 20, 1976, when an Interlocal Agreement was entered into
by four participating municipal corporations: Renton, Kent, Auburn and Tukwila. The provisions and terms of the
“Interlocal Cooperation Act”, pursuant to RCW 39.34, sanction the agreement. The initial duration of the agreement
was five years and thereafter is automatically extended for consecutive two-year periods, unless terminated by one or
more of the participating cities. Any such termination must be in writing and served upon the other cities on or before
July 1 in any one year and such termination shall then become effective on the last day of such year.
On August 4, 1999 the Administration Board of Valley Communications Center voted to include the City of Federal
Way as a full participating member city as of January 1, 2000. The five participating municipal corporations that include
the cities of Renton, Kent, Auburn, Tukwila, and Federal Way on April 17, 2000 entered into a new Interlocal
Agreement, pursuant to RCW 39.34, et seq. This agreement reaffirmed Valley Communications Center as a
governmental administration agency pursuant to RCW 39.34.030 (3) (b).
SCHEDULE OF OUTSTANDING CONSTRUCTION OBLIGATIONS
As of December 31, 2021
Amount Outstanding
Street projects 6,279,604$
Traffic projects 957,996
Utilities projects 7,626,092
Other projects 3,209,507
Total commitments 18,073,199$
City of Auburn: 2021 Annual Comprehensive Financial Report Notes to the Financial Statements
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The purpose of the joint operation, hereafter referred to as Valley Com, is to provide improved consolidated emergency
communications (dispatch) services for police, fire and medical aid to the five participating cities and to the several
subscribing agencies, which include King County Fire Districts #2, #20, #40, #43, #44, #47, Black Diamond Fire
Department, Vashon Island Fire Department, City of Pacific Police and Fire Departments, City of Algona Police
Department, City of Black Diamond Police Department, City of Des Moines Police Department, SeaTac Fire Department,
North Highline Fire Department, and King County EMS Units. In 1988, King County Fire District #1 was annexed to the
City of Tukwila. A separate agreement between Valley Com and the subscribing agencies has been executed, which set
forth condition of services and rates charged.
The participating cities provide the majority of revenues to Valley Com. The method of allocating revenue source was
changed in 1990 to a basis of prior year’s calls with actual first and second quarter and estimated third and fourth quarter
calls. The allocation of prorated financial participation among the five participating cities is the percentage of estimated
dispatched calls attributed to each jurisdiction compared to the total actual and estimated dispatched calls, for the period
for January 1 through December 31. The percentages are applied to the current approved budget, less revenue from
subscribing agencies and all other sources.
The 2021 cost distribution for the five participating cities is as follows:
Valley Com is served by an Administration Board composed of the Mayors or designated representatives from the five
participating cities of Renton, Kent, Auburn, Tukwila and Federal Way. The Administration Board is responsible for the
following functions: 1) Budget review and recommendation to the legislative bodies of the participating cities, and
budget adoption after each legislative body has approved the required financial participation for the ensuing year; 2)
Approval of appointment and/or discharge of the Director; 3) Approval of personnel policy and final decisions on all
major policy changes; 4) Review and approval of all contracts.
In addition, an Operations Board provides direction and consists of two members of each participating City’s public
safety departments, including the heads of such departments or their designees. The Operations Board performs the
following functions: 1) Oversees the operation of Valley Com, advises and makes recommendations to the
Administration Board; 2) Makes recommendations on Director selection; 3) Presents proposed policies and budget to
the Administration Board; 4) Approves disbursement of funds by the Director.
The Director presents a proposed budget to the Operations Board on or before August 15 of each year. Said budget is
then presented to the Administration Board by September 1 of each year. The Administration Board can make changes
to the proposed Valley Com budget as it finds necessary, but final approval falls to the legislative body of each
participating city in accordance with the provisions of the Interlocal Agreement.
In August 1993, Valley Com entered into an Interlocal Cooperation Agreement, pursuant to Chapter 39.34 RCW, with
the sub-regions of King County, Seattle and Eastside Public Safety Communications Agency (EPSCA). This agreement
Dispatchable Percent of
Calls Total *
Kent 101,249 26.51%
Renton 80,799 21.15%
Auburn 83,626 21.90%
Tukwila 35,008 9.17%
Federal Way 81,257 21.27%
Total 381,939 100.00%
*Distribution of current year net income is based on these budgeted percentages.
SOURCE: Valley Com Center - 2021 Owner Equity Allocation
City of Auburn: 2021 Annual Comprehensive Financial Report Notes to the Financial Statements
97
governs the development, acquisition and installation of the 800 MHz emergency radio communications system (system)
funded by the $57 million King County levy.
This agreement provides that upon voluntary termination of any sub-region participation in the system, it surrenders its
radio frequencies, relinquishes its equipment and transfers any unexpended levy proceeds and association equipment
replacement reserves to another sub-region or consortium of sub-regions.
The share of equity belonging to the five participating cities is as follows:
Liabilities are the responsibility of the five participating cities in direct proportion to their equity position.
Complete audited financial statements for Valley Communications Center can be obtained from Valley Communications
Center, 27519 108th Ave SE, Kent, WA 98030, or telephone 253-372-1300.
South Correctional Entity (SCORE)
On March 25, 2009, the Cities of Auburn, Burien, Des Moines, Federal Way, Renton, SeaTac and Tukwila, Washington
(Member Cities) entered into a SCORE Facility Interlocal Agreement (as amended and restated on October 1, 2009, the
“2009 Interlocal Agreement”) pursuant to chapter 39.34 RCW (Interlocal Cooperation Act) to jointly construct, equip,
maintain and operate a consolidated regional misdemeanant correctional facility located in Des Moines, Washington
(SCORE Facility) to serve the parties to the 2009 Interlocal Agreement and state agencies and other local governments
(Subscribing Agencies) to provide correctional services essential to the preservation of the public health, safety and
welfare. To carry out the purposes of the 2009 Interlocal Agreement and to operate, manage and maintain the SCORE
Facility, the Member Cities formed the South Correctional Entity (SCORE), a separate governmental administrative
agency pursuant to the 2009 Interlocal Agreement and RCW 39.34.030(3).
The 2009 Interlocal Agreement named the City of Des Moines as the “Host City” and the remaining Member Cities as
the “Owner Cities”. Pursuant to a separate “Host City Agreement” dated October 1, 2009, the Host City will not enjoy
the same equity position as the Owner Cities until all debts issued are paid and the Host City fulfills all of its obligations
as outlined in the Host City Agreement. Pursuant to SCORE financial policies, all unexpended funds or reserve funds
shall be distributed based on the percentage of the Member City’s average daily population at the SCORE Facility for
the last three (3) years regardless of its Owner City or Host City status.
SCORE and the SCORE Facility may serve the Member Cities and Subscribing Agencies which are in need of correctional
facilities. Any agreement with a Subscribing Agency shall be in writing and approved by SCORE as provided within the
SCORE Formation Interlocal Agreement.
SCORE, as a governmental administrative agency formed under the Interlocal Cooperation Act, is not expressly
authorized to issue bonds. To finance and refinance the costs of the SCORE Facility, the City of Renton, Washington,
chartered the South Correctional Entity Facility Public Development Authority as a public corporation pursuant to RCW
35.21.730 through 35.21.757 (Public Corporation Act) and Ordinance No. 5444, passed on February 2, 2009 (Charter
Ordinance).
Item Kent Renton Auburn Tukwila Federal Way Total
Equity Dec 31, 2020 9,564,555$ 7,037,728$ 7,234,069$ $3,416,212 6,022,545$ 33,275,109$
Current year change 1,337,422 1,067,292 1,104,634 462,424 1,073,341 5,045,113
Equity Dec 31, 2021 10,901,977$ 8,105,020$ 8,338,703$ 3,878,636$ 7,095,886$ 38,320,222$
% of equity 28.45% 21.15% 21.76%10.12%18.52%
% of 2021 distribution 26.51% 21.15% 21.90% 9.17% 21.27%
SOURCE: Valley Com Center - 2021 Owner Equity Allocation
City of Auburn: 2021 Annual Comprehensive Financial Report Notes to the Financial Statements
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2009 SCORE Bonds
The SCORE PDA issued its Bonds, Series 2009A (2009A Bonds) and Bonds, Series 2009B (Taxable Build America Bonds—
Direct Payment) (2009B Bonds, and, together the 2009 Bonds) on November 4, 2009 in the aggregate principal amount
of $86,235,000. Proceeds of the 2009 Bonds were used to finance a portion of the costs of acquiring, constructing,
developing, equipping and improving the SCORE Facility, to capitalize interest during construction, and to pay costs of
issuance for the 2009 Bonds.
Pursuant to the 2009 Interlocal Agreement and the ordinances of each city, each Owner City (which includes the Cities
of Auburn, Burien, Federal Way, Renton, SeaTac, and Tukwila) is obligated to budget for and pay its share, and only its
share, of the principal of and interest on the 2009 Bonds as the same become due and payable (referred to as each
Owner City’s 2009 Capital Contribution). Each Owner City’s obligation to pay its 2009 Capital Contribution is an
irrevocable, unconditional full faith and credit obligation of such Owner City, payable from regular property taxes levied
within the constitutional and statutory authority provided without a vote of the electors of the Owner City on all of
the taxable property within the Owner City and other sources of revenues available therefor.
Subsequent Activities: Refunding of 2009 Bonds and Amendment and Restatement of Interlocal Agreement.
Pursuant to the 2009 Interlocal Agreement, on September 5, 2018, the City of Federal Way gave its notice of intent to
withdraw from SCORE effective December 31, 2019. The remaining Member Cities (including the cities of Auburn,
Burien, Des Moines, Renton, SeaTac and Tukwila) entered into an Amended and Restated SCORE Interlocal Agreement
(2019 Interlocal Agreement), which amended and restated the 2009 Interlocal Agreement in its entirety, removed
Federal Way as a Member City (effective December 31, 2019) and an Owner City (effective immediately), added the
City of Des Moines as an Owner City, terminated the Host City Agreement, and made other revisions to provide for
the issuance of bonds to refund the 2009 Bonds.
On December 11, 2019, the Authority issued its Refunding Bonds, Series 2019 in the aggregate principal amount of
$51,055,000 (2019 Bonds). The 2019 Interlocal Agreement became effective on the date of issuance of the 2019 Bonds.
Proceeds of the 2019 Bonds were used, together with a contribution from Federal Way to fully pay its 2009 Capital
Contribution, to defease and refund all of the outstanding 2009 Bonds.
As a result, Federal Way has satisfied its 2009 Capital Contribution and, as of December 31, 2019, will no longer be
considered a Member City of SCORE.
Pursuant to the 2019 Interlocal Agreement and the ordinances of each city, each remaining Owner City (including the
Cities of Auburn, Burien, Des Moines, Renton, SeaTac, and Tukwila) is obligated to budget for and pay its share, and
only its share, of the principal of and interest on the 2019 Bonds as the same become due and payable (referred to as
each Owner City’s 2019 Capital Contribution). Each Owner City’s obligation to pay its 2019 Capital Contribution is an
irrevocable, unconditional full faith and credit obligation of such Owner City, payable from regular property taxes levied
within the constitutional and statutory authority provided without a vote of the electors of the Owner City on all of
the taxable property within the Owner City and other sources of revenues available therefor. The City of Federal Way
is not obligated, under the 2019 Interlocal Agreement or otherwise, to pay debt service on the 2019 Bonds or other
debt of the Authority.
The following is a summary of the debt service requirements for the 2019 Bonds:
Auburn Burien Des Moines Renton SeaTac Tukwila
Year Principal Interest Total 34.94% 4.82% 6.02% 40.96% 3.62% 9.64%
2022 1,915,000$ 1,996,100$ 3,911,100$ 1,366,538$ 188,515$ 235,448$ 1,601,987$ 141,582$ 377,030$
2023 1,990,000 1,919,500 3,909,500 1,365,979 188,438 235,352 1,601,331 141,524 376,876
2024 2,070,000 1,839,900 3,909,900 1,366,119 188,457 235,376 1,601,495 141,538 376,914
2025 2,155,000 1,757,100 3,912,100 1,366,888 188,563 235,508 1,602,396 141,618 377,126
2026 2,260,000 1,649,350 3,909,350 1,365,927 188,431 235,343 1,601,270 141,518 376,861
2027-2031 13,115,000 6,434,250 19,549,250 6,830,508 942,274 1,176,865 8,007,373 707,683 1,884,548
2032-2036 16,405,000 3,142,000 19,547,000 6,829,722 942,165 1,176,729 8,006,451 707,601 1,884,331
2037-2038 7,480,000 338,250 7,818,250 2,731,697 376,840 470,659 3,202,356 283,021 753,679
Totals 47,390,000$ 19,076,450$ 66,466,450$ 23,223,378$ 3,203,683$ 4,001,280$ 27,224,659$ 2,406,085$ 6,407,365$
Debt Service Allocation to Owner CitiesDebt Service Schedule
Summary of Debt Service Requirements - Refunding Bonds, 2019 (Ref 2009A & 2009B)
City of Auburn: 2021 Annual Comprehensive Financial Report Notes to the Financial Statements
99
The City of Auburn reports its share of equity interest in the Governmental Activities column within the Government-
wide financial statements under non-current assets. The following summary of the Capital Contributions for the 2019
Bonds is condensed (unaudited) financial information reported as of December 31, 2021 in relation to SCORE:
Completed financial statements for SCORE and SCORE PDA can be obtained at SCORE, Attn: Finance Director, 20817
17th Avenue South, Des Moines, WA 98198.
Since the obligation to fund future joint venture-related debt is separately reported as due to other governments, the
investment in joint ventures is reported as a combination of this debt with the current reported equity in joint ventures
as follows:
Member City 2020 Percent of Equity 2020 Equity Balance 2021 Percent of Equity 2021 Apportionment 2021 Equity Balance
Auburn 43.05%12,967,700$ 41.93%760,941$ 13,728,641$
Burien 5.14%1,548,383 5.30%187,658 1,736,041
Des Moines 4.62%1,392,707 4.95%226,688 1,619,395
Renton 31.70%9,546,337 31.93%903,035 10,449,372
SeaTac 7.66%2,306,559 8.13%354,751 2,661,310
Tukwila 7.83%2,357,977 7.76%183,808 2,541,785
Grand Totals 100.00%30,119,663$ 100.00%2,616,881$ 32,736,544$
South Correctional Entity (SCORE)
Balance Additions Reductions Balance
12/31/2020 12/31/2021
Valley Communication Public Dev Auth -$ -$ -$ -$
SCORE Public Development Authority 17,200,962 - (642,896) 16,558,066
Due to Other Governments 17,200,962 - (642,896) 16,558,066
Valley Communications Center 7,234,070 1,104,634 - 8,338,704
South Correctional Entity (SCORE)12,967,700 760,941 - 13,728,641
Equity Share 20,201,770 1,865,575 - 22,067,345
Total Investment in Joint Ventures 38,625,411$
Investment in Joint Ventures
City of Auburn: 2021 Annual Comprehensive Financial Report Notes to the Financial Statements
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NOTE 15 – JOINTLY GOVERNED ORGANIZATION / RELATED PARTY
Residents of the cities of Auburn, Algona and Pacific approved in the November 7, 2006 general election the creation
of a regional fire authority pursuant to RCW 52.26. The new regional fire protection service authority, called the Valley
Regional Fire Authority (VRFA), provides first responder fire and emergency medical services to residents of Auburn,
Algona and Pacific. The VRFA is a new municipal corporation, with its own Governing Board, and is legally separate
from the three cities it serves. The Governing Board of the VRFA consists of the Mayors of the three cities within the
VRFA service area, as well as two Councilmembers from each city. Membership on the Governing Board is made by
appointment from the city council of the respective member cities. Effective January 1, 2007, all personnel, assets,
equipment and contractual obligations of the former Auburn Fire Department were transferred to the VRFA. Similar
transfers were made by the cities of Algona and Pacific.
In accordance with the interlocal agreement at time of formation, each member city retained its obligation for LEOFF 1
firefighter and Fire Relief and Pension Plan obligations. Premium and benefit payments for retired LEOFF 1 firefighters
for 2021 were $158,596. Medical premiums and benefit payments made under the Fire Relief and Pension Plan for
2021 were $29,400.
NOTE 16 – CONTINGENCIES AND LITIGATIONS
As of December 31, 2021 a number of claims were pending against the City for damages and legal actions. While the
outcome of these actions is uncertain, no uncovered losses are anticipated at this time with these pending claims. In the
event of a liability finding against the City, it is anticipated that any potential adverse judgment against the City also
would be subject to coverage under the City’s general liability insurance.
The City participates in a number of federal and state assisted programs. These grants are subject to audit by the grantors
or their representatives. Such audits could result in requests for reimbursement to grantor agencies for expenditures
disallowed under the terms of the grants. The City’s management believes that such disallowances, if any, will be
immaterial.
City of Auburn: 2021 Annual Comprehensive Financial Report Notes to the Financial Statements
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NOTE 17 – RISK MANAGEMENT & INSURANCE
Risk Management
The City is exposed to various risks of loss such as: theft and damage and destruction of assets, errors and omissions,
injuries or property damage to others, employees’ health, and natural disasters. All risk financing activities are accounted
for in the Insurance internal service fund. To insure against risks of loss the City of Auburn is a member of the Washington
Cities Insurance Authority (WCIA).
Utilizing Chapter 48.62 RCW (self-insurance regulation) and Chapter 39.34 RCW (Interlocal Cooperation Act), nine cities
originally formed WCIA on January 1, 1981. WCIA was created for the purpose of providing a pooling mechanism for
jointly purchasing insurance, jointly self-insuring, and / or jointly contracting for risk management services. WCIA has a
total of 166 Members.
New members initially contract for a three-year term, and thereafter automatically renew on an annual basis. A one-
year withdrawal notice is required before membership can be terminated. Termination does not relieve a former member
from its unresolved loss history incurred during membership.
Liability coverage is written on an occurrence basis, without deductibles. Coverage includes general, automobile, police,
errors or omissions, stop gap, employment practices, prior wrongful acts, and employee benefits liability. Limits are $4
million per occurrence in the self-insured layer, and $16 million in limits above the self-insured layer is provided by
reinsurance. Total limits are $20 million per occurrence subject to aggregate sublimits. The Board of Directors
determines the limits and terms of coverage annually.
Insurance coverage for property, automobile physical damage, fidelity, inland marine, and boiler and machinery coverage
are purchased on a group basis. Various deductibles apply by type of coverage. Property coverage is self-funded from the
members’ deductible to $750,000, for all perils other than flood and earthquake, and insured above that to $400 million
per occurrence subject to aggregates and sublimits. Automobile physical damage coverage is self-funded from the
members’ deductible to $250,000 and insured above that to $100 million per occurrence subject to aggregates and
sublimits.
In-house services include risk management consultation, loss control field services, and claims and litigation
administration. WCIA contracts for certain claims investigations, consultants for personnel and land use issues, insurance
brokerage, actuarial, and lobbyist services.
WCIA is fully funded by its members, who make annual assessments on a prospectively rated basis, as determined by an
outside, independent actuary. The assessment covers loss, loss adjustment, reinsurance and administrative expenses. As
outlined in the interlocal, WCIA retains the right to additionally assess the membership for any funding shortfall.
An investment committee, using investment brokers, produces additional revenue by investment of WCIA’s assets in
financial instruments which comply with all State guidelines.
A Board of Directors governs WCIA, which is comprised of one designated representative from each member. The Board
elects an Executive Committee and appoints a Treasurer to provide general policy direction for the organization. The
WCIA Executive Director reports to the Executive Committee and is responsible for conducting the day to day operations
of WCIA.
No settlement has exceeded insurance coverage over the past three years.
City of Auburn: 2021 Annual Comprehensive Financial Report Notes to the Financial Statements
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Workers’ Compensation
Title 51 RCW requires the City to ensure payment of benefits for job-related injuries and diseases through the Workers’
Compensation fund or through self-insurance. The City become self-insured for Worker’s Compensation in 2014. The
funding and allocations for the worker’s compensation program are reviewed by an actuary on an annual basis. The
actuarial study made by Bickmore as of December 31, 2021, projected ultimate loss during 2022 and 2023 program
years to be $663,000 and $696,000, respectively. At December 31, 2021, incurred but not reported and claims
payable were estimated at $865,000. At December 31, 2021, fund equity was $2,862,454. The City carrier’s excess
works’ compensation insurance coverage with a private carrier for losses exceeding $500,000 per occurrence to a
maximum indemnity in occurrence with statutory limits. Claims handling is currently contracted to an independent,
qualified third-party administrator (TPA).
The Workers Compensation claims liability includes an estimated amount for claims that have been incurred but not
reported (IBNR). Reported claims liabilities are based on the requirements of GASB 10, which requires that a liability
for claims be reported if information prior to the issuance of the financial statements indicates that it is probable that a
liability has been incurred at the date of the financial statements and the amount of the loss can be reasonable
estimated.
Changes in the Workers Compensation self-insurance fund claims liabilities in 2021 and 2020 were:
CHANGES OF ESTIMATED CLAIMS LIABILITIES FOR 2021 AND 2020
Workers Compensation
2021 2020
Beg. of Year Claims Liabilities $932,000 $932,000
Less: Claim Payments (166,601) (91,396)
Plus: Claims and Changes in Estimates 99,601 91,396
End of Year Claims Liabilities $865,000 $932,000
NOTE 18 – TAX ABATEMENTS
The city offers a multifamily property tax exemption within the downtown core to encourage construction of new
multifamily housing, and that the provisions of additional housing opportunities in the downtown core will assist in
achieving the goals of the city’s comprehensive plan. Under Chapter 84.14 RCW, the city provides the opportunity for
a limited, eight-year exemptions from ad valorem property taxation for a qualified new multifamily and rehabilitated
multifamily housing constructed in the downtown core and twelve-year exemptions from ad valorem property
taxation for qualified new affordable multifamily and rehabilitated multifamily housing contracted in the downtown
core. Abatements are obtained through application by the property owner, including proof of improvements that
have been made, and equal 100 percent of the additional property tax resulting from the increase in assessed value
because of the improvements. If application is approved and all requirements meet, exemption begins January 1st, of
the year immediately following the calendar year of issuance of the final certificate of tax emption. If at any time it is
determined the property no longer complies with the terms of the contract or the requirements, or the use of the
property for any reason no longer qualifies for the tax exemption, the tax exemption shall be cancelled and additional
taxes, interest and penalties imposed.
The city has the following tax abatement agreement(s) in place as of December 31, 2021.
1) Plan A Development LLC, project name Trek Apartments; a four-story building of 126 apartment units with
outdoor plaza and ground parking and retail space. The final certificate of tax exemption was issued
December 3, 2015, with the eight-year ad valorem property tax exemption to start with tax year 2016. The
city’s portion of the property tax abated during the fiscal year 2021 was $36,367.
City of Auburn: 2021 Annual Comprehensive Financial Report Notes to the Financial Statements
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2) Merrill Gardens at Auburn LLC, project name Merrill Gardens; a senior living community with 129 apartment
units (114 assisted living units and 15 memory care units). The building is four stories above grade with one
level of below grade parking. The final certificate of tax exemption was issued September 14, 2017, with the
eight-year ad valorem property tax exemption to start with tax year 2018. The city’s portion of the property
tax abated during the fiscal year 2021 was $41,471.
3) Altus Group US Inc, project name The Verge Apartments; a 7-story building of 226 apartment units, upper
story outdoor plazas, parking and ground floor commercial space. The final certificate of tax exemption was
issued on October 14, 2021, with the eight-year ad valorem property tax exemption to start with tax year
2022.
NOTE 19 – REPORTING CHANGE
The City created the Auburn Transportation Benefit District (TBD) on September 12, 2011 Ordinance 6377. The TBD
is an independent taxing district and was established primarily to benefit the City of Auburn transportation functions.
During the TBD’s existence the TBD has not collected or spent any funds, does not have any contracts, has not
committed to any projects, and does not have any assets. In 2015, the legislature changed the law to allow that a
City with the same boundaries as the TBD may assume the rights, powers, functions, and obligations of that TBD. The
City of Auburn council passed ordinance number 6739 on November 18, 2019 to assume the rights, powers,
functions, and obligations of the existing Auburn TBD.
NOTE 20 – SUBSEQUENT EVENT - COVID-19 PANDEMIC
In February 2020, the Governor of the state of Washington declared a state of emergency in response to the spread of
COVID-19. Precautionary measures to slow the spread of the virus continued throughout 2021. These measures
included limitations on business operations, public events, gatherings, travel, and in-person interactions.
In response to the pandemic, most city facilities continued to be closed to the public in 2021, many city employees
work remotely under the guidance of procedures that were put in place at the beginning of the pandemic.
The city will transition to working back in the office starting in January 2022 and opening city facilities to the public in
the first few months of 2022. The Mayor and Leadership Team continue to monitor the situation during this period
of uncertainty.
City of Auburn: 2021 Annual Comprehensive Financial Report Notes to the Financial Statements
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City of Auburn: 2021 Annual Comprehensive Financial Report Required Supplemental Information
105
REQUIRED SUPPLEMENTARY INFORMATION
Schedule of Proportionate Share of the Net Pension Liability
As of June 30, 2021
Last 10 Fiscal Years*
PERS 1 2021 2020 2019 2018 2017 2016 2015
Employer's proportion of the net pension liability
(asset)0.177157%0.176594%0.184008%0.190096%0.192614%0.194185%0.192878%
Employer's proportionate share of the net pension
liability (asset)2,163,502$ 6,234,722$ 7,075,761$ 8,489,752$ 9,139,685$ 10,428,649$ 10,089,313$
Covered payroll 27,362,217$ 26,748,878$ 25,792,744$ 24,866,577$ 24,085,628$ 22,947,013$ 21,788,519$
Employer's proportionate share of the net pension
liability as a percentage of its covered payroll 7.91%23.31%27.43%34.14%37.95%45.45%46.31%
Plan fiduciary net position as a percentage of the
total pension liability 88.74%68.64%67.12%63.22%61.24%57.03%59.10%
PERS 2/3 2021 2020 2019 2018 2017 2016 2015
Employer's proportion of the net pension liability
(asset)0.227559%0.229959%0.236778%0.239249%0.243488%0.247760%0.241739%
Employer's proportionate share of the net pension
liability (asset)(22,668,538)$ 2,941,045$ 2,299,919$ 4,084,964$ 8,460,044$ 12,223,580$ 8,637,472$
Covered payroll 27,362,217$ 26,748,878$ 25,763,285$ 24,674,226$ 23,904,107$ 22,734,107$ 21,460,504$
Employer's proportionate share of the net pension
liability as a percentage of its covered payroll -82.85%11.00%8.93%16.56%35.39%53.77%40.25%
Plan fiduciary net position as a percentage of the
total pension liability 120.29%97.22%97.77%95.77%90.97%85.82%89.20%
LEOFF 1 2021 2020 2019 2018 2017 2016 2015
Employer's proportion of the net pension liability
(asset)9.564400%0.096208%0.097999%0.101761%0.102451%0.101574%0.103718%
Employer's proportionate share of the net pension
liability (asset)(3,276,345)$ (1,816,897)$ (1,937,059)$ (1,847,473)$ (1,554,407)$ (1,046,503)$ (1,250,031)$
Covered payroll -$ -$ -$ -$ -$ -$ -$
Employer's proportionate share of the net pension
liability as a percentage of its covered payroll 0.00%0.00%0.00%0.00%0.00%0.00%0.00%
Plan fiduciary net position as a percentage of the
total pension liability 187.45%146.88%148.78%144.42%136.00%123.74%127.36%
LEOFF 2 2021 2020 2019 2018 2017 2016 2015
Employer's proportion of the net pension liability
(asset)0.379530%0.374857%0.394720%0.403472%0.370954%0.359661%0.354511%
Employer's proportionate share of the net pension
liability (asset)(22,044,674)$ (7,646,536)$ (9,144,451)$ (8,191,361)$ (5,147,640)$ (2,091,896)$ (2,193,486)$
State's proportionate share of the net pension
liability (asset) associated with the employer (14,221,221)$ (4,889,380)$ (5,988,390)$ (5,303,752)$ (3,339,178)$ (1,363,764)$ (1,450,178)$
Total (36,265,895)$ (12,535,916)$ (15,132,841)$ (13,495,113)$ (8,486,818)$ (3,455,660)$ (3,643,664)$
Covered payroll 14,178,478$ 13,661,010$ 13,248,982$ 12,697,917$ 11,623,292$ 10,953,667$ 10,336,409$
Employer's proportionate share of the net pension
liability as a percentage of its covered payroll -155.48%-55.97%-69.02%-64.51%-44.29%-19.10%-21.22%
Plan fiduciary net position as a percentage of the
total pension liability 142.00%115.83%119.43%118.50%113.40%106.04%111.67%
City of Auburn: 2021 Annual Comprehensive Financial Report Required Supplemental Information
106
REQUIRED SUPPLEMENTARY INFORMATION
Schedule of Proportionate Share of the Net Pension Liability
As of June 30, 2021
Last 10 Fiscal Years*
* The City implemented GASB Statement No. 68 in fiscal year 2015. Information is not available for prior years. The
schedule will be built prospectively until it contains ten years of data.
Notes to Schedule:
Significant methods and assumptions used in calculating the actuarial determined contribution are presented in Note 9.
Contribution and covered payroll on this schedule is based on the plan fiscal year – July 1 – June 30.
The LEOFF 1 plan is closed and has no further covered payroll.
City of Auburn: 2021 Annual Comprehensive Financial Report Required Supplemental Information
107
REQUIRED SUPPLEMENTARY INFORMATION
Schedule of Employer Contributions
As of December 31, 2021
Last 10 Fiscal Years*
* The City implemented GASB Statement No. 68 in fiscal year 2015. Information is not available for prior years. The
schedule will be built prospectively until it contains ten years of data.
Note to Schedule:
Significant methods and assumptions used in calculating the actuarial determined contribution are presented in Note 9.
PERS 1 2021 2020 2019 2018 2017 2016 2015
Statutorily or contractually required 1,205,178$ 1,318,974$ 1,310,731$ 1,296,482$ 1,216,069$ 1,132,885$ 1,001,824$
Contributions in relation to the statutorily or
contractually required contributions (1,205,178)$ (1,318,974)$ (1,310,731)$ (1,296,482)$ (1,216,069)$ (1,132,885)$ (1,001,824)$
Contribution deficiency (excess)-$ -$ -$ -$ -$ -$ -$
Covered payroll 28,098,202$ 26,726,280$ 26,516,814$ 25,212,705$ 24,538,921$ 23,510,382$ 22,436,909$
Contributions as a percentage of covered 4.29%4.94%4.94%5.14%4.96%4.82%4.47%
PERS 2/3 2021 2020 2019 2018 2017 2016 2015
Statutorily or contractually required 2,005,971$ 2,121,829$ 2,047,116$ 1,941,592$ 1,714,887$ 1,495,562$ 1,286,928$
Contributions in relation to the statutorily or
contractually required contributions (2,005,971)$ (2,121,829)$ (2,047,116)$ (1,941,592)$ (1,714,887)$ (1,495,562)$ (1,286,928)$
Contribution deficiency (excess)-$ -$ -$ -$ -$ -$ -$
Covered payroll 28,098,202$ 26,726,280$ 26,516,814$ 25,087,758$ 24,350,435$ 23,330,702$ 22,130,501$
Contributions as a percentage of covered 7.14%7.94%7.72%7.74%7.04%6.41%5.82%
LEOFF 2 2021 2020 2019 2018 2017 2016 2015
Statutorily or contractually required 756,576$ 737,023$ 730,140$ 708,333$ 639,662$ 594,665$ 551,812$
Contributions in relation to the statutorily or
contractually required contributions (756,576)$ (737,023)$ (730,140)$ (708,333)$ (639,662)$ (594,665)$ (551,812)$
Contribution deficiency (excess)-$ -$ -$ -$ -$ -$ -$
Covered payroll 14,315,013$ 13,852,684$ 13,597,937$ 13,044,797$ 11,992,821$ 11,370,216$ 10,553,437$
Contributions as a percentage of covered 5.29%5.32%5.37%5.43%5.33%5.23%5.23%
City of Auburn: 2021 Annual Comprehensive Financial Report Required Supplemental Information
108
REQUIRED SUPPLEMENTARY INFORMATION
Schedule of Changes in Total Pension Liability & Related Ratios
Fire Relief and Pension Plan
Last 10 Fiscal Years *
* The City implemented GASB Statement No. 73 in fiscal year 2017. Information is not available for prior years. The
schedule will be built prospectively until it contains ten years of data.
Notes to Schedule:
No assets have been accumulated in a trust that meets the criteria of a qualified plan.
The effect of assumption changes or inputs is the result of a change in the discount rate from 2.75% as of December 31,
2019 to 2.00% as of December 31, 2020.
Significant methods and assumptions used in calculating the actuarial determined contribution are presented in Note 9.
2021 2020 2019 2018 2017 2016 2015 2014 2013 2012
Total Pension Liability - Beginning 3,562,986$ 3,452,448$ 2,973,304$ 3,212,435$ 3,218,004$ N/A N/A N/A N/A N/A
Service Cost - - - - - N/A N/A N/A N/A N/A
Interest on Total Pension Liability 69,409 91,863 114,553 108,873 116,957 N/A N/A N/A N/A N/A
Effect of Plan Changes - - - - - N/A N/A N/A N/A N/A
Effect of Economic/Demographic Gains (Losses)(534,707) - 208,957 - - N/A N/A N/A N/A N/A
Effect of Assumption Changes or Inputs 138,062 244,126 376,773 (142,719) 77,612 N/A N/A N/A N/A N/A
Benefit Payments (186,020) (225,451) (221,139) (205,285) (200,138) N/A N/A N/A N/A N/A
Net Change in Total Pension Liability (513,256) 110,538 479,144 (239,131) (5,569) N/A N/A N/A N/A N/A
Total Pension Liability - Ending 3,049,730$ 3,562,986$ 3,452,448$ 2,973,304$ 3,212,435$ N/A N/A N/A N/A N/A
Covered Payroll - - - - - N/A N/A N/A N/A N/A
Total Pension Liability as a % of Covered Payroll N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
Fiscal Year Ending December 31
City of Auburn: 2021 Annual Comprehensive Financial Report Required Supplemental Information
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REQUIRED SUPPLEMENTARY INFORMATION
Schedule of Changes in Total OPEB Liability and Related Ratios
Firemen’s Relief and Pension Plan and LEOFF 1 Employees
For the Year Ended December 31
Last 10 Fiscal Years*
* The City implemented GASB Statement No. 75 in fiscal year 2018. Information is not available for prior years. The
schedule will be built prospectively until it contains ten years of data.
Notes to Schedule:
No assets have been accumulated in a trust that meets the criteria in paragraph 4 of GASB 75 to pay related benefits.
The effect of assumption changes or inputs is the result of a change in the discount rate from 2.75% as of December 31,
2019 to 2.00% as of December 31, 2020.
Significant methods and assumptions used in calculating the actuarial determined contribution are presented in Note 10.
2021 2020 2019 2018 2017 2016 2015 2014 2013 2012
Total OPEB Liability - Beginning 14,784,873$ 13,702,359$ 16,228,865$ 17,472,360$ N/A N/A N/A N/A N/A N/A
Service Cost - - - - N/A N/A N/A N/A N/A N/A
Interest on Total OPEB Liability 290,093 368,593 636,891 597,724 N/A N/A N/A N/A N/A N/A
Changes of Benefit Terms - - - - N/A N/A N/A N/A N/A N/A
Effect of Economic/Demographic Gains (Losse (704,125) - (3,427,650) - N/A N/A N/A N/A N/A N/A
Effect of Assumption Changes or Inputs (437,389) 1,315,995 883,507 (1,045,269) N/A N/A N/A N/A N/A N/A
Expected Benefit Payments (563,141) (602,074) (619,254) (795,950) N/A N/A N/A N/A N/A N/A
Total OPEB Liability - Ending 13,370,311$ 14,784,873$ 13,702,359$ 16,228,865$ N/A N/A N/A N/A N/A N/A
Covered Payroll - - - - N/A N/A N/A N/A N/A N/A
Total OPEB Liability as a % of Covered Payroll N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
Fiscal Year Ending December 31
City of Auburn: 2021 Annual Comprehensive Financial Report Required Supplemental Information
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City of Auburn: 2021 Annual Comprehensive Financial Report Fund Financial Statements & Schedules
111
NON-MAJOR GOVERNMENTAL FUNDS
The City has four types of Non-Major Governmental Funds.
Special Revenue Funds
Special revenue funds account for the proceeds of specific revenue sources and are segregated into
individual funds to ensure that expenditures are made exclusively for qualified purposes. Special
revenue funds are accounted for on a modified accrual basis. Biennial budgets are adopted with
appropriations lapsing at year-end.
Debt Service Funds
Debt service funds account for payments of principal and interest on general obligation and special
assessment long-term debt.
Capital Project Funds
Capital project funds account for the City of Auburn's financial resources used for the acquisition or
construction of major non-proprietary capital facilities.
Permanent Funds
Permanent funds are used to report resources that are legally restricted to the extent that only
earnings, and not principal, may be used for purposes that support City programs that are for the
benefit of the City or its citizens.
City of Auburn: 2021 Annual Comprehensive Financial Report Fund Financial Statements & Schedules
112
Total Total Total Total Total
Nonmajor Nonmajor Nonmajor Nonmajor Nonmajor
Special Revenue Debt Service Capital Projects Permanent Governmental
Funds Funds Funds Funds Funds
ASSETS:
Cash and Cash Equivalents 30,264,200$ 385,815$ 1,406,993$ 2,106,447$ 34,163,455$
Receivables:
Customer Accounts 1,881 - 3,707 - 5,588
Other Receivables 52,571 - - - 52,571
Due From Other Governmental Units 654,895 - - - 654,895
Total Assets 30,973,547 385,815 1,410,700 2,106,447 34,876,509
LIABILITIES, DEFERRED INFLOWS AND FUND BALANCES:
Liabilities:
Current Payables 702,446 - 18,983 - 721,429
Interfund Payable (Note 5)150,000 - - - 150,000
Unearned Revenue 5,802,647 - - - 5,802,647
Total Liabilities 6,655,093 - 18,983 - 6,674,076
Deferred Inflow of Resources:
Fund Balances:
Nonspendable - - - 2,010,357 2,010,357
Restricted 18,931,996 3,828 1,075,138 - 20,010,962
Committed 5,283,101 - - - 5,283,101
Assigned 103,357 381,987 316,579 96,090 898,013
Total Fund Balances 24,318,454 385,815 1,391,717 2,106,447 28,202,433
Total Liabilities, Deferred Inflows and Fund
Balances 30,973,547$ 385,815$ 1,410,700$ 2,106,447$ 34,876,509$
December 31, 2021
City of Auburn, Washington
COMBINING BALANCE SHEET
NON-MAJOR GOVERNMENT FUNDS
City of Auburn: 2021 Annual Comprehensive Financial Report Fund Financial Statements & Schedules
113
Total Total Total Total Total
Nonmajor Nonmajor Nonmajor Nonmajor Nonmajor
Special Revenue Debt Service Capital Projects Permanent Governmental
REVENUES:
Taxes:
Property -$ -$ 246,303$ -$ 246,303$
Retail Sales & Use - 260,195 - - 260,195
Interfund Utility 711,548 - - - 711,548
Utility 1,384,962 - - - 1,384,962
Excise 149,326 - - - 149,326
Other 41,621 - - - 41,621
Intergovernmental 3,854,575 - - - 3,854,575
Charges for Services 2,895,921 - 4,842 82,175 2,982,938
Special Assessments - 591 - - 591
Investment Earnings 23,485 122 1,403 2,010 27,020
Miscellaneous 441,889 361 8,136 - 450,386
Total Revenues 9,503,327 261,269 260,684 84,185 10,109,465
EXPENDITURES:
Current:
General Government 196,596 - - - 196,596
Security of Persons & Property 862,753 - - - 862,753
Transportation 5,422,197 - - - 5,422,197
Economic Environment 1,146,920 - - - 1,146,920
Debt Service:
Principal - 1,041,802 - - 1,041,802
Interest - 838,272 - - 838,272
Capital Outlay - - 1,157,898 - 1,157,898
Total Expenditures 7,628,466 1,880,074 1,157,898 - 10,666,438
Excess (Deficiency) of Revenues
Over (Under) Expenditures 1,874,861 (1,618,805) (897,214) 84,185 (556,973)
OTHER FINANCING SOURCES (USES):
Transfers In (Note 5)2,002,790 1,909,039 1,040,510 - 4,952,339
Transfers Out (Note 5)(2,283,457) - - - (2,283,457)
Total Other Financing Sources (Uses)(280,667) 1,909,039 1,040,510 - 2,668,882
Net Change in Fund Balances 1,594,194 290,234 143,296 84,185 2,111,909
Fund Balances - Beginning 22,724,260 95,581 1,248,421 2,022,262 26,090,524
Fund Balances - Ending 24,318,454$ 385,815$ 1,391,717$ 2,106,447$ 28,202,433$
City of Auburn, Washington
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
NON-MAJOR GOVERNMENT FUNDS
For the Year Ended December 31, 2021
City of Auburn: 2021 Annual Comprehensive Financial Report Fund Financial Statements & Schedules
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City of Auburn: 2021 Annual Comprehensive Financial Report Fund Financial Statements & Schedules
115
NON-MAJOR GOVERNMENTAL FUNDS
SPECIAL REVENUE FUNDS
Special revenue funds account for the proceeds of specific revenue sources and are segregated
into individual funds to ensure that expenditures are made exclusively for qualified purposes.
Special revenue funds are accounted for on a modified accrual basis. Annual budgets are adopted
with appropriations lapsing each year of the biennium. The City has eight non-major special
revenue funds.
The Local Street Fund
This fund was created when Auburn voters approved the Save Our Streets lid lift in 2004 and is
used to account for all revenues and expenditures related to this initiative.
Hotel/Motel Tax Fund
This fund was created to account for the hotel/motel taxes levied to support City tourist
promotion.
Arterial Street Preservation Fund
This fund was created to repair classified arterial streets and is funded from a one percent utility
tax increase that was adopted by Council in 2008.
Drug Forfeiture Fund
Money seized and forfeited from drug activity is deposited in this fund to be used exclusively for
drug investigation and enforcement.
American Rescue Plan Act Fund
The fund was created to track Federal funding from the coronavirus rescue package
designed to facilitate the recovery from the devasting economic impacts and public health
emergency effects of the COVID-19 pandemic.
The Housing and Community Development Fund
Accounts for projects associated with the Community Development Block Grant program.
The Recreational Trails Fund
Created for the purpose of trail development. This is a tax-supported fund.
The Business Improvement Area Fund
Accounts for special assessments on downtown merchants for ongoing services and for
improvements made to the downtown area.
Mitigation Fees
Accounts for the receipt of contracted mitigation fees for streets and fire service.
City of Auburn: 2021 Annual Comprehensive Financial Report Fund Financial Statements & Schedules
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Page 1 of 2
Hotel/Arterial American Housing
Local Motel Street Drug Rescue Plan Community
Streets Tax Preservation Forfeiture Act (ARPA)Development
ASSETS:
Cash and Cash Equivalents 3,640,658$ 433,204$ 2,905,314$ 1,067,602$ 5,847,305$ 29,705$
Receivables:
Customer Accounts - - 1,260 633 - (12)
Other Receivables - - 52,571 - - -
Due From Other Governmental Units - - 223,050 11,456 - 420,389
Total Assets 3,640,658 433,204 3,182,195 1,079,691 5,847,305 450,082
LIABILITIES AND FUND BALANCES:
Liabilities:
Current Payables 308,584 75 48,499 19,855 44,658 257,240
Interfund Payable (Note 5)- - - - - 150,000
Unearned Revenue - - - - 5,802,647 -
Total Liabilities 308,584 75 48,499 19,855 5,847,305 407,240
Fund Balances:
Restricted - 433,129 1,176,586 1,058,013 - 42,842
Committed 3,328,733 - 1,954,368 - - -
Assigned 3,341 - 2,742 1,823 - -
Total Fund Balances 3,332,074 433,129 3,133,696 1,059,836 - 42,842
Total Liabilities and Fund Balances 3,640,658$ 433,204$ 3,182,195$ 1,079,691$ 5,847,305$ 450,082$
City of Auburn, Washington
COMBINING BALANCE SHEET
NON-MAJOR SPECIAL REVENUE FUNDS
December 31, 2021
City of Auburn: 2021 Annual Comprehensive Financial Report Fund Financial Statements & Schedules
117
Page 2 of 2
Total
Business Nonmajor
Recreational Improvement Mitigation Special Revenue
Trails Area Fees Funds
88,795$ 186,202$ 16,065,415$ 30,264,200$
- - - 1,881
- - - 52,571
- - - 654,895
88,795 186,202 16,065,415 30,973,547
- - 23,535 702,446
- - - 150,000
- - - 5,802,647
- - 23,535 6,655,093
88,712 186,016 15,946,698 18,931,996
- - - 5,283,101
83 186 95,182 103,357
88,795 186,202 16,041,880 24,318,454
88,795$ 186,202$ 16,065,415$ 30,973,547$
City of Auburn: 2021 Annual Comprehensive Financial Report Fund Financial Statements & Schedules
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Page 1 of 2
Hotel/Arterial American Housing
Local Motel Street Drug Rescue Plan Community
Streets Tax Preservation Forfeiture Act (ARPA)Development
REVENUES:
Taxes:
Interfund Utility -$ -$ 711,548$ -$ -$ -$
Utility - - 1,384,962 - - -
Excise - 149,326 - - - -
Other - - - - - -
Intergovernmental - - 1,176,586 7,953 1,572,968 1,090,068
Charges for Services - - - 22,881 - -
Investment Earnings 3,341 365 2,742 1,823 - -
Miscellaneous - - - 441,889 - -
Total Revenues 3,341 149,691 3,275,838 474,546 1,572,968 1,090,068
EXPENDITURES:
Current:
Security of Persons and Property - - - 312,753 - -
Transportation 1,524,683 - 3,897,514 - - -
Economic Environment - 32,369 - - - 1,089,551
General Government - - - - 196,596 -
Total Expenditures 1,524,683 32,369 3,897,514 312,753 196,596 1,089,551
Excess (Deficiency) of Revenues
Over (Under) Expenditures (1,521,342) 117,322 (621,676) 161,793 1,376,372 517
OTHER FINANCING SOURCES (USES):
Transfers In (Note 5)1,564,844 - 437,946 - - -
Transfers Out (Note 5)- - (68,500) (125,458) (1,376,372) -
Total Other Financing Sources (Uses)1,564,844 - 369,446 (125,458) (1,376,372) -
Net Change in Fund Balances 43,502 117,322 (252,230) 36,335 - 517
Fund Balances - Beginning 3,288,572 315,807 3,385,926 1,023,501 - 42,325
Fund Balances - Ending 3,332,074$ 433,129$ 3,133,696$ 1,059,836$ -$ 42,842$
City of Auburn, Washington
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
NON-MAJOR SPECIAL REVENUE FUNDS
For the Year Ended December 31, 2021
City of Auburn: 2021 Annual Comprehensive Financial Report Fund Financial Statements & Schedules
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Page 2 of 2
Total
Business Nonmajor
Recreational Improvement Mitigation Special Revenue
Trails Area Fees Funds
-$ -$ -$ 711,548$
- - - 1,384,962
- - - 149,326
- 41,621 - 41,621
7,000 - - 3,854,575
- - 2,873,040 2,895,921
83 186 14,945 23,485
- - - 441,889
7,083 41,807 2,887,985 9,503,327
- - 550,000 862,753
- - - 5,422,197
- 25,000 - 1,146,920
- - - 196,596
- 25,000 550,000 7,628,466
7,083 16,807 2,337,985 1,874,861
- - - 2,002,790
- - (713,127) (2,283,457)
- - (713,127) (280,667)
7,083 16,807 1,624,858 1,594,194
81,712 169,395 14,417,022 22,724,260
88,795$ 186,202$ 16,041,880$ 24,318,454$
City of Auburn: 2021 Annual Comprehensive Financial Report Fund Financial Statements & Schedules
120
Variance with
Final Final Budget
Original Adopted Actual Positive
(GAAP Basis)(GAAP Basis)Results (Negative)
REVENUES:
Taxes:
Investment Earnings 10,600$ 10,600$ 3,341$ (7,259)$
Total Revenues 10,600 10,600 3,341 (7,259)
EXPENDITURES:
Current:
Transportation 2,363,950 3,621,219 1,524,683 2,096,536
Total Expenditures 2,363,950 3,621,219 1,524,683 2,096,536
Excess (Deficiency) of Revenues
Over (Under) Expenditures (2,353,350) (3,610,619) (1,521,342) 2,089,277
OTHER FINANCING SOURCES (USES):
Transfers In (Note 5)2,350,000 2,350,000 1,564,844 (785,156)
Total Other Financing Sources (Uses)2,350,000 2,350,000 1,564,844 (785,156)
Net Change in Fund Balances (3,350) (1,260,619) 43,502 1,304,121
Fund Balances - Beginning 1,321,778 3,288,572 3,288,572 -
Fund Balances - Ending 1,318,428$ 2,027,953$ 3,332,074$ 1,304,121$
Budget Amounts
For the Year Ended December 31, 2021
City of Auburn, Washington
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
LOCAL STREETS SPECIAL REVENUE FUND
City of Auburn: 2021 Annual Comprehensive Financial Report Fund Financial Statements & Schedules
121
Variance with
Final Final Budget
Original Adopted Actual Positive
(GAAP Basis)(GAAP Basis)Results (Negative)
REVENUES:
Taxes:
Excise 135,000$ 135,000$ 149,326$ 14,326$
Charges for Services 2,500 2,500 - (2,500)
Investment Earnings 1,600 1,600 365 (1,235)
Total Revenues 139,100 139,100 149,691 10,591
EXPENDITURES:
Current:
Economic Environment 177,110 177,110 32,369 144,741
Total Expenditures 177,110 177,110 32,369 144,741
Excess (Deficiency) of Revenues
Over (Under) Expenditures (38,010) (38,010) 117,322 155,332
OTHER FINANCING SOURCES (USES):
Net Change in fund Balances (38,010) (38,010) 117,322 155,332
Fund Balances - Beginning 225,286 315,807 315,807 -
Fund Balances - Ending 187,276$ 277,797$ 433,129$ 155,332$
Budget Amounts
For the Year Ended December 31, 2021
City of Auburn, Washington
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
HOTEL/MOTEL TAX SPECIAL REVENUE FUND
City of Auburn: 2021 Annual Comprehensive Financial Report Fund Financial Statements & Schedules
122
Variance with
Final Final Budget
Original Adopted Actual Positive
(GAAP Basis)(GAAP Basis)Results (Negative)
REVENUES:
Taxes:
Interfund Utility 725,100$ 725,100$ 711,548$ (13,552)$
Utility 1,315,300 1,315,300 1,384,962 69,662
Intergovernmental 741,250 5,016,622 1,176,586 (3,840,036)
Investment Earnings 12,400 12,400 2,742 (9,658)
Total Revenues 2,794,050 7,069,422 3,275,838 (3,793,584)
EXPENDITURES:
Current:
Transportation 2,836,250 9,382,141 3,897,514 5,484,627
Total Expenditures 2,836,250 9,382,141 3,897,514 5,484,627
Excess (Deficiency) of Revenues
Over (Under) Expenditures (42,200) (2,312,719) (621,676) 1,691,043
OTHER FINANCING SOURCES (USES):
Transfers In (Note 5)- 437,946 437,946 -
Transfers Out (Note 5)(50,000) (68,500) (68,500) -
Total Other Financing Sources (Uses)(50,000) 369,446 369,446 -
Net Change in Fund Balances (92,200) (1,943,273) (252,230) 1,691,043
Fund Balances - Beginning 1,606,304 3,385,926 3,385,926 -
Fund Balances - Ending 1,514,104$ 1,442,653$ 3,133,696$ 1,691,043$
Budget Amounts
For the Year Ended December 31, 2021
City of Auburn, Washington
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
ARTERIAL STREET PRESERVATION SPECIAL REVENUE FUND
City of Auburn: 2021 Annual Comprehensive Financial Report Fund Financial Statements & Schedules
123
Variance with
Final Final Budget
Original Adopted Actual Positive
(GAAP Basis)(GAAP Basis)Results (Negative)
REVENUES:
Taxes:
Intergovernmental -$ -$ 7,953$ 7,953$
Charges for Services 16,000 16,000 22,881 6,881
Investment Earnings 6,600 6,600 1,823 (4,777)
Miscellaneous 125,000 125,000 441,889 316,889
Total Revenues 147,600 147,600 474,546 326,946
EXPENDITURES:
Current:
Security of Persons & Property 364,874 396,874 312,753 84,121
Total Expenditures 364,874 396,874 312,753 84,121
Excess (Deficiency of Revenues
Over (Under) Expenditures (217,274) (249,274) 161,793 411,067
OTHER FINANCING SOURCES (USES):
Transfers Out (Note 5)(128,120) (214,920) (125,458) 89,462
Total Other Financing Sources and Uses (128,120) (214,920) (125,458) 89,462
Net Change in Fund Balances (345,394) (464,194) 36,335 500,529
Fund Balances - Beginning 957,967 1,023,501 1,023,501 -
Fund Balances - Ending 612,573$ 559,307$ 1,059,836$ 500,529$
Budget Amounts
For the Year Ended December 31, 2021
City of Auburn, Washington
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
DRUG FORFEITURE SPECIAL REVENUE FUND
City of Auburn: 2021 Annual Comprehensive Financial Report Fund Financial Statements & Schedules
124
Variance with
Final Final Budget
Original Adopted Actual Positive
(GAAP Basis)(GAAP Basis)Results (Negative)
REVENUES:
Intergovernmental -$ 7,375,600$ 1,572,968$ (5,802,632)$
Total Revenues - 7,375,600 1,572,968 (5,802,632)
EXPENDITURES:
Current:
General Government - - 196,596 (196,596)
Total Expenditures - - 196,596 (196,596)
Excess (Deficiency) of Revenues
Over (Under) Expenditures - 7,375,600 1,376,372 (5,999,228)
OTHER FINANCING SOURCES (USES):
Transfers Out (Note 5)- (1,958,900) (1,376,372) 582,528
Total Other Financing Sources (Uses)- (1,958,900) (1,376,372) 582,528
Net Change in Fund Balances - 5,416,700 - (5,416,700)
Fund Balances - Beginning - - - -
Fund Balances - Ending -$ 5,416,700$ -$ (5,416,700)$
Budget Amounts
For the Year Ended December 31, 2021
City of Auburn, Washington
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
AMERICAN RESCUE PLAN ACT (ARPA) SPECIAL REVENUE FUND
City of Auburn: 2021 Annual Comprehensive Financial Report Fund Financial Statements & Schedules
125
Variance with
Final Final Budget
Original Adopted Actual Positive
(GAAP Basis)(GAAP Basis)Results (Negative)
REVENUES:
Intergovernmental 600,000$ 1,732,500$ 1,090,068$ (642,432)$
Total Revenues 600,000 1,732,500 1,090,068 (642,432)
EXPENDITURES:
Current:
Economic Environment 600,000 1,732,500 1,089,551 642,949
Total Expenditures 600,000 1,732,500 1,089,551 642,949
Excess (Deficiency) of Revenues
Over (Under) Expenditures - - 517 517
OTHER FINANCING SOURCES (USES):
Net Change in Fund Balances - - 517 517
Fund Balances - Beginning 42,904 42,325 42,325 -
Fund Balances - Ending 42,904$ 42,325$ 42,842$ 517$
Budget Amounts
For the Year Ended December 31, 2021
City of Auburn, Washington
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
HOUSING & COMMUNITY DEVELOPMENT SPECIAL REVENUE FUND
City of Auburn: 2021 Annual Comprehensive Financial Report Fund Financial Statements & Schedules
126
Variance with
Final Final Budget
Original Adopted Actual Positive
(GAAP Basis)(GAAP Basis)Results (Negative)
REVENUES:
TAXES:
Intergovernmental 7,000$ 7,000$ 7,000$ -$
Investment Earnings 700 700 83 (617)
Total Revenues 7,700 7,700 7,083 (617)
EXPENDITURES:
Excess (Deficiency) of Revenues
Over (Under) Expenditures 7,700 7,700 7,083 (617)
OTHER FINANCING SOURCES (USES):
Net Change in Fund Balances 7,700 7,700 7,083 (617)
Fund Balances - Beginning 79,425 81,712 81,712 -
Fund Balances - Ending 87,125$ 89,412$ 88,795$ (617)$
Budget Amounts
For the Year Ended December 31, 2021
City of Auburn, Washington
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
RECREATION TRAILS SPECIAL REVENUE FUND
City of Auburn: 2021 Annual Comprehensive Financial Report Fund Financial Statements & Schedules
127
Variance with
Final Final Budget
Original Adopted Actual Positive
(GAAP Basis)(GAAP Basis)Results (Negative)
REVENUES:
Taxes:
Other 55,000$ 55,000$ 41,621$ (13,379)$
Investment Earnings 700 700 186 (514)
Total Revenues 55,700 55,700 41,807 (13,893)
EXPENDITURES:
Current:
Economic Environment 90,000 90,000 25,000 65,000
Total Expenditures 90,000 90,000 25,000 65,000
Excess (Deficiency) of Revenues
Over (Under) Expenditures (34,300) (34,300) 16,807 51,107
OTHER FINANCING SOURCES (USES):
Net Change in Fund Balances (34,300) (34,300) 16,807 51,107
Fund Balances - Beginning 96,325 169,395 169,395 -
Fund Balances - Ending 62,025$ 135,095$ 186,202$ 51,107$
Budget Amounts
For the Year Ended December 31, 2021
City of Auburn, Washington
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
BUSINESS IMPROVEMENT AREA SPECIAL REVENUE FUND
City of Auburn: 2021 Annual Comprehensive Financial Report Fund Financial Statements & Schedules
128
Variance with
Final Final Budget
Original Adopted Actual Positive
(GAAP Basis)(GAAP Basis)Results (Negative)
REVENUES:
Investment Earnings 101,000$ 101,000$ (68,577)$ (169,577)$
Total Revenues 101,000 101,000 (68,577) (169,577)
EXPENDITURES:
Excess (Deficiency) of Revenues
Over (Under) Expenditures 101,000 101,000 (68,577) (169,577)
OTHER FINANCING SOURCES (USES):
Transfers In (Note 5)- 2,000,000 2,000,000 -
Transfers Out (Note 5)- (42,200) - 42,200
Total Other Financing Sources (Uses)- 1,957,800 2,000,000 42,200
Net Change in Fund Balances 101,000 2,058,800 1,931,423 (127,377)
Fund Balances - Beginning 6,383,315 8,622,344 8,622,344 -
Fund Balances - Ending 6,484,315$ 10,681,144$ 10,553,767$ (127,377)$
RECONCILIATION OF PERSPECTIVE DIFFERENCE BETWEEN BUDGETARY INFORMATION AND
GENERALLY ACCEPTED ACCOUNTING PRINCIPLES (GAAP):
The Cumulative Reserve Fund is combined with
the General Fund for purposes of GASB Statement 54 (10,553,767)
Fund Balance - Ending (GAAP)-$
The notes to the financial statements are an integral part of this statement.
Budget Amounts
For the Year Ended December 31, 2021
City of Auburn, Washington
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
CUMULATIVE RESERVE SPECIAL REVENUE FUND
City of Auburn: 2021 Annual Comprehensive Financial Report Fund Financial Statements & Schedules
129
Variance with
Final Final Budget
Original Adopted Actual Positive
(GAAP Basis)(GAAP Basis)Results (Negative)
REVENUES:
TAXES:
Charges for Services 1,130,400$ 1,130,400$ 2,873,040$ 1,742,640$
Investment Earnings 87,160 87,160 14,945 (72,215)
Total Revenues 1,217,560 1,217,560 2,887,985 1,670,425
EXPENDITURES:
Current:
Security of Person & Property 119,200 594,200 550,000 44,200
Total Expenditures 119,200 594,200 550,000 44,200
Excess (Deficiency) of Revenues
Over (Under) Expenditures 1,098,360 623,360 2,337,985 1,714,625
OTHER FINANCING SOURCES (USES):
Transfers Out (Note 5)(4,146,280) (7,144,337) (713,127) 6,431,210
Total Other Financing Sources (Uses)(4,146,280) (7,144,337) (713,127) 6,431,210
Net Change in Fund Balances (3,047,920) (6,520,977) 1,624,858 8,145,835
Fund Balances - Beginning 12,420,562 14,417,022 14,417,022 -
Fund Balances - Ending 9,372,642$ 7,896,045$ 16,041,880$ 8,145,835$
Budget Amounts
For the Year Ended December 31, 2021
City of Auburn, Washington
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
MITIGATION SPECIAL REVENUE FUND
City of Auburn: 2021 Annual Comprehensive Financial Report Fund Financial Statements & Schedules
130
City of Auburn: 2021 Annual Comprehensive Financial Report Fund Financial Statements & Schedules
131
NON-MAJOR GOVERNMENTAL FUNDS
DEBT SERVICE FUNDS
Debt service funds account for payments of principal and interest on general obligation and special
assessment long-term debt. The City of Auburn has two outstanding general obligation issues, and
two special assessment funds.
The 2016 General Obligation Bonds
Accounts for the debt service on a Council-approved bond issue to refund on a current basis the
2005 General Obligation Refunding Airport Bonds and refunding on an advance basis the 2006A
General Obligation Bonds for Golf and Cemetery.
2020 A Series and B Series Refunding General Obligation Bonds
The 2020 A Series accounts for the debt service on the refund of the 2010 B Series General
Obligation Bonds which was to finance acquisition costs of certain condominium units in the City
Hall Annex. The 2020 B Series accounts for the debt service on the refund of the 2010 D Series
General Obligation Bonds which was to finance a portion of the downtown infrastructure
improvements in the City’s revitalization area.
The L.I.D. Guarantee Fund
This fund provides financial security for outstanding L.I.D. bonds and special assessment debt.
Special Assessment Debt Fund
Accounts for the special assessment collections and debt service payments for all local improvement
districts located within the City.
City of Auburn: 2021 Annual Comprehensive Financial Report Fund Financial Statements & Schedules
132
Total
2020 2016 Nonmajor
Refunding Combined Refunding LID Special Debt Service
A&B (2010 B&D)Golf/Cemetery Guarantee Assessments Funds
ASSETS:
Cash and Cash Equivalents 381,987$ -$ 1,677$ 2,151$ 385,815$
Total Assets 381,987 - 1,677 2,151 385,815
LIABILITIES, DEFERRED INFLOWS AND FUND BALANCES:
Fund Balances:
Restricted - - 1,677 2,151 3,828
Assigned 381,987 - - - 381,987
Total Fund Balances 381,987 - 1,677 2,151 385,815
Total Liabilities, Deferred Inflows and Fund Balances 381,987$ -$ 1,677$ 2,151$ 385,815$
City of Auburn, Washington
COMBINING BALANCE SHEET
NON-MAJOR DEBT SERVICE FUNDS
December 31, 2021
City of Auburn: 2021 Annual Comprehensive Financial Report Fund Financial Statements & Schedules
133
Total
2020 2016 Nonmajor
Refunding Combined Refunding L I D Special Debt Service
A&B (2010 B&D)Golf/Cemetery Guarantee Assessments Funds
REVENUES:
Taxes:
Retail Sales & Use 260,195$ -$ -$ -$ 260,195$
Special Assessments - - - 591 591
Investment Earnings 119 - 1 2 122
Miscellanous - - - 361 361
Total Revenues 260,314 - 1 954 261,269
EXPENDITURES:
Debt Service:
Principal 700,000 341,802 - - 1,041,802
Interest 809,235 29,037 - - 838,272
Total Expenditures 1,509,235 370,839 - - 1,880,074
Excess (Deficiency) of Revenues
Over (Under) Expenditures (1,248,921) (370,839) 1 954 (1,618,805)
OTHER FINANCING SOURCES (USES):
Transfers In (Note 5)1,538,200 370,839 - - 1,909,039
Total Other Financing Sources (Uses)1,538,200 370,839 - - 1,909,039
Net Change in Fund Balances 289,279 - 1 954 290,234
Fund Balances - Beginning 92,708 - 1,676 1,197 95,581
Fund Balances - Ending 381,987$ -$ 1,677$ 2,151$ 385,815$
City of Auburn, Washington
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE
NON-MAJOR DEBT SERVICE FUNDS
For the Year Ended December 31, 2021
City of Auburn: 2021 Annual Comprehensive Financial Report Fund Financial Statements & Schedules
134
City of Auburn: 2021 Annual Comprehensive Financial Report Fund Financial Statements & Schedules
135
NON-MAJOR GOVERNMENTAL FUNDS
CAPITAL PROJECT FUNDS
Capital projects funds account for the City of Auburn's financial resources used for the acquisition or
construction of major non-proprietary capital facilities. Auburn has two non-major capital project
funds.
The Municipal Park Construction Fund
Accounts for park related construction activity and includes funding from a portion of field rental
income and adult athletic team fees.
The Local Revitalization Fund
Accounts for the City Hall Plaza and the Downtown Promenade project.
City of Auburn: 2021 Annual Comprehensive Financial Report Fund Financial Statements & Schedules
136
Municipal Nonmajor
Park Local Capital Project
Construction Revitalization Funds
ASSETS:
Cash and Cash Equivalents 1,082,891$ 324,102$ 1,406,993$
Receivables:
Customer Accounts 3,707 - 3,707
Total Assets 1,086,598 324,102 1,410,700
LIABILITIES AND FUND BALANCES:
Liabilities:
Current Payables 11,460 7,523 18,983
Total Liabilities 11,460 7,523 18,983
Fund Balances:
Restricted 1,075,138 - 1,075,138
Assigned - 316,579 316,579
Total Fund Balances 1,075,138 316,579 1,391,717
Total Liabilities and Fund Balances 1,086,598$ 324,102$ 1,410,700$
City of Auburn, Washington
COMBINING BALANCE SHEET
CAPITAL PROJECT FUNDS
December 31, 2021
City of Auburn: 2021 Annual Comprehensive Financial Report Fund Financial Statements & Schedules
137
Municipal Nonmajor
Park Local Capital Project
Construction Revitalization Funds
REVENUES:
Taxes:
Property 246,303$ -$ 246,303$
Charges for Services 4,842 - 4,842
Investment Earnings 1,072 331 1,403
Miscellaneous 8,136 - 8,136
Total Revenues 260,353 331 260,684
EXPENDITURES:
Capital Outlay 1,111,537 46,361 1,157,898
Total Expenditures 1,111,537 46,361 1,157,898
Excess (Deficiency) of Revenues
Over (Under) Expenditures (851,184) (46,030) (897,214)
OTHER FINANCING SOURCES (USES):
Transfers In (Note 5)1,032,987 7,523 1,040,510
Total Other Financing Sources (Uses)1,032,987 7,523 1,040,510
Net Change in Fund Balances 181,803 (38,507) 143,296
Fund Balances - Beginning 893,335 355,086 1,248,421
Fund Balances - Ending 1,075,138$ 316,579$ 1,391,717$
City of Auburn, Washington
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
CAPITAL PROJECT FUNDS
For the Year Ended December 31, 2021
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NON-MAJOR GOVERNMENTAL FUNDS
PERMANENT FUNDS
Permanent funds are used to report resources that are legally restricted to the extent that only
earnings, and not principal, may be used for purposes that support City programs that are for the
benefit of the City or its citizens. Auburn has one permanent fund.
The Cemetery Endowed Care Fund
Accounts for non-expendable investments held by the City's trustee. The interest income from
investments is available for use by the cemetery fund for capital enhancement and maintenance.
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Cemetery
Endowed
Care
ASSETS:
Cash and Cash Equivalents
Non-Expendable Trust 2,106,447$
Total Assets 2,106,447
LIABILITIES AND FUND BALANCES:
FUND BALANCES:
Nonspendable 2,010,357
Assigned 96,090
Total Fund Balances 2,106,447
Total Liabilities and Fund Balances 2,106,447$
City of Auburn, Washington
BALANCE SHEET
PERMANENT FUND
December 31, 2021
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Cemetery
Endowed
Care
REVENUES:
Increase to Endowment from Lot Sales 82,175$
Investment Earnings 2,010
Total Revenues 84,185
EXPENDITURES:
Excess (Deficiency) of Revenues
Over (Under) Expenditures 84,185
OTHER FINANCING SOURCES (USES):
Net Change in Fund Balance 84,185
Fund Balance - Beginning 2,022,262
Fund Balance - Ending 2,106,447$
For the Year Ended December 31, 2021
City of Auburn, Washington
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
PERMANENT FUND
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NON-MAJOR PROPRIETARY FUNDS
ENTERPRISE FUNDS
The City's enterprise funds are used to account for operations that are financed and operated in
a manner similar to private business operations. The goods and services these funds provide to
the general public are primarily financed by service charges. Enterprise funds are self-supporting
and use the accrual method of accounting. Auburn has two non-major enterprise funds.
The Airport Fund
Provides accounting of the activities of the Auburn Municipal Airport. Sources of income for the
fund are leases, rentals, fuel charges, investment interest, and grant funding as available.
The Cemetery Fund
Accounts for Mountain View Cemetery's operations.
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Total
Nonmajor
Enterprise
Airport Cemetery Funds
ASSETS:
Current Assets:
Cash and Cash Equivalents 1,484,987$ 1,670,527$ 3,155,514$
Restricted Cash:
Customer Deposits 128,896 - 128,896
Customer Accounts 11,955 - 11,955
Due From Other Governmental Units 59,347 - 59,347
Inventories 44,918 9,217 54,135
Total Current Assets 1,730,103 1,679,744 3,409,847
Noncurrent Assets:
Net Pension Asset 226,685 453,371 680,056
Capital Assets:
Land 3,679,680 342,836 4,022,516
Buildings and Equipments 3,094,307 1,006,755 4,101,062
Improvements Other Than Buildings 13,978,825 1,539,068 15,517,893
Construction in Progress 27,926 5,576 33,502
Less: Accumulated Depreciation (9,515,269) (1,667,932) (11,183,201)
Total Capital Assets (Net of A/D)11,265,469 1,226,303 12,491,772
Total Noncurrent Assets 11,492,154 1,679,674 13,171,828
Total Assets 13,222,257 3,359,418 16,581,675
DEFERRED OUTFLOWS OF RESOURCES:
Deferred Outflow Related to Pensions 6,629 45,001 51,630
6,629 45,001 51,630
LIABILITIES:
Current Liabilities:
Current Payables 24,478 39,444 63,922
Employee Leave Benefits - Current 10,588 28,867 39,455
Customer Deposits 128,896 - 128,896
Total Current Liabilities 163,962 68,311 232,273
Noncurrent Liabilities:
Employee Leave Benefits 4,582 12,495 17,077
Net Pension Liability (83,339) (129,236) (212,575)
Total Noncurrent Liabilities (78,757) (116,741) (195,498)
Total Liabilities 85,205 (48,430) 36,775
DEFERRED INFLOWS OF RESOURCES:
Deferred Inflow Related to Pensions 191,468 454,048 645,516
NET POSITION:
Net Investment in Capital Assets 11,265,469 1,226,303 12,491,772
Unrestricted 1,686,744 1,772,498 3,459,242
Total Net Position 12,952,213$ 2,998,801$ 15,951,014$
City of Auburn, Washington
COMBINING STATEMENT OF NET POSITION
NON-MAJOR ENTERPRISE FUNDS
December 31, 2021
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Total
Nonmajor
Enterprise
Airport Cemetery Funds
OPERATING REVENUES:
Charges for Services 610,795$ 1,984,771$ 2,595,566$
Other Operating Revenue 984,446 - 984,446
Total Operating Revenues 1,595,241 1,984,771 3,580,012
OPERATING EXPENSES:
Operations & Maintenance 1,053,091 919,963 1,973,054
Administration 123,589 284,225 407,814
Depreciation/Amortization 633,181 37,548 670,729
Other Operating Expenses 2,764 26,879 29,643
Total Operating Expenses 1,812,625 1,268,615 3,081,240
Operating Income (Loss)(217,384) 716,156 498,772
NON-OPERATING REVENUE (EXPENSE):
Interest Revenue 1,542 1,358 2,900
Other Non-Operating Revenues 109,760 - 109,760
Total Non-Operating Revenue (Expense)111,302 1,358 112,660
Income (Loss) Before Contributions & Transfers (106,082) 717,514 611,432
Transfers Out (Note 5)- (29,339) (29,339)
Change in Net Position (106,082) 688,175 582,093
Net Position, January 1 13,058,295 2,310,626 15,368,921
Net Position, December 31 12,952,213$ 2,998,801$ 15,951,014$
City of Auburn, Washington
COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION
NON-MAJOR ENTERPRISE FUNDS
For the Year Ended December 31, 2021
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Page 1 of 2
Total
Non Major
Enterprise
Airport Cemetery Funds
CASH FLOWS FROM OPERATING ACTIVITIES:
Cash Received From Users 2,059,923$ 1,984,771$ 4,044,694$
Cash Paid to Suppliers for Goods & Services (957,268) (582,164) (1,539,432)
Cash Paid for Taxes (2,792) (26,879) (29,671)
Cash Paid to Employees (369,429) (801,551) (1,170,980)
Net Cash Provided (Used) By Operating Activities 733,573 574,177 1,307,750
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:
Interfund Loan Payable (425,000) - (425,000)
Operating Grant Received 106,621 - 106,621
Operating Transfers Out - (29,339) (29,339)
Net Cash Provided (Used) by Non-Capital Financing Activities (318,379) (29,339) (347,718)
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES:
Purchase of Capital Assets (38,257) (9,906) (48,163)
Net Cash Provided (Used) for Capital and Related Financing Activities (38,257) (9,906) (48,163)
CASH FLOW FROM INVESTING ACTIVITIES:
Interest Received 1,542 1,358 2,900
Net Cash Provided (Used) in Investing Activities 1,542 1,358 2,900
Net Increase (Decrease) in Cash and Cash Equivalents 378,479 536,290 914,769
Cash and Cash Equivalents - Beginning of Year 1,235,404 1,134,237 2,369,641
Cash and Cash Equivalents - End of Year 1,613,883$ 1,670,527$ 3,284,410$
CASH AT END OF YEAR CONSISTS OF:
Cash and Cash Equivalents 1,484,987 1,670,527 3,155,514
Restricted Cash - Customer Deposits 128,896 - 128,896
Total Cash 1,613,883$ 1,670,527$ 3,284,410$
City of Auburn, Washington
COMBINING STATEMENT OF CASH FLOWS
NON-MAJOR ENTERPRISE FUNDS
For the Fiscal Year Ended December 31, 2021
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Page 2 of 2
Total
Non Major
Enterprise
Airport Cemetery Funds
RECONCILIATION OF NET OPERATING INCOME TO NEW CASH
PROVIDED BY OPERATING ACTIVITIES
Operating Income (Loss)(217,384)$ 716,156$ 498,772$
ADJUSTMENTS TO RECONCILE OPERATING INCOME TO
NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES:
Depreciation 633,181 37,548 670,729
Other Non-Operating Revenue 3,139 - 3,139
Asset (Increases) Decreases:
Accounts Receivable 459,479 - 459,479
Inventory (36,086) (102) (36,188)
Liability Increases (Decreases):
Accounts & Vouchers Payable (33,846) (24,441) (58,287)
Deposits Payable 5,203 - 5,203
Wages & Benefits Payable (86,825) (174,537) (261,362)
Compensated Absences Payable 6,712 19,553 26,265
Total Adjustments 950,957 (141,979) 808,978
Net Cash Provided (Used) by Operating Activities 733,573$ 574,177$ 1,307,750$
SCHEDULE OF NONCASH INVESTING, CAPITAL AND
FINANCING ACTIVITIES
Total Non Cash Investing, Capital and Financing Activities -$ -$ -$
City of Auburn, Washington
COMBINING STATEMENT OF CASH FLOWS
NON-MAJOR ENTERPRISE FUNDS
For the Fiscal Year Ended December 31, 2021
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NON-MAJOR PROPRIETARY FUNDS
INTERNAL SERVICE FUNDS
The City of Auburn's internal service funds are used to account for the financing of goods and
services provided by one department of operation to other departments on a cost reimbursement
basis. Internal service funds are self-supporting and use the accrual method of accounting. Auburn
has five internal service funds.
The Insurance Fund
Provides a source of funds to pay unemployment claims and property and casualty claims which
fall below deductible levels.
The Workers Comp Self Insurance Fund
Provides a source of funds to pay time loss and medical benefits for employees who are affected
by an occupational injury or illness.
The Facilities Funds
Accounts for the costs of maintaining various City facilities.
The Information Services Fund
Accounts for the costs of purchasing and maintaining the City’s various computer and
telecommunications systems.
The Equipment Rental Fund
Accounts for the costs of purchasing, maintaining, and operating Auburn's fleet of vehicles and
related equipment.
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Workers Comp Information Equipment
Insurance Self Insurance Facilities Services Rental Total
ASSETS:
Current Assets:
Cash and Cash Equivalents 1,786,729$ 3,771,754$ 1,121,843$ 3,811,649$ 7,798,912$ 18,290,887$
Customer Accounts - - 84,560 - - 84,560
Due From Other Governmental Units - - 18,333 35,096 133,728 187,157
Inventories - - - - 368,780 368,780
Total Current Assets 1,786,729 3,771,754 1,224,736 3,846,745 8,301,420 18,931,384
Noncurrent Assets:
Net Pension Asset - - 453,371 1,586,798 453,371 2,493,540
Capital Assets:
Buildings and Equipment - - - 9,382,122 19,041,511 28,423,633
Improvements Other than Buildings - - - 294,889 188,225 483,114
Construction in Progress - - - - 65,641 65,641
Less: Accumulated Depreciation - - - (8,421,902) (11,664,768) (20,086,670)
Total Capital Assets (Net of A/D)- - - 1,255,109 7,630,609 8,885,718
Total Noncurrent Assets - - 453,371 2,841,907 8,083,980 11,379,258
Total Assets 1,786,729 3,771,754 1,678,107 6,688,652 16,385,400 30,310,642
DEFERRED OUTFLOWS OF RESOURCES:
Deferred Outflow Related to Pensions - 7,349 75,004 166,855 65,957 315,165
LIABILITIES:
Current Liabilities:
Current Payables 18,554 36,134 341,909 197,556 581,771 1,175,924
Claims Payable (Incurred but not reported)- 865,000 - - - 865,000
Employee Leave Benefits - Current - - 48,266 141,031 28,472 217,769
Total Current Liabilities 18,554 901,134 390,175 338,587 610,243 2,258,693
Noncurrent Liabilities
Employee Leave Benefits - - 20,891 61,042 12,323 94,256
Net Pension Liability - 1,087 (135,191) (614,168) 847,210 98,938
Total Noncurrent Liabilities - 1,087 (114,300) (553,126) 859,533 193,194
Total Liabilities 18,554 902,221 275,875 (214,539) 1,469,776 2,451,887
DEFERRED INFLOWS OF RESOURCES:
Deferred Inflow Related to Pensions - 14,428 468,366 1,600,130 525,760 2,608,684
NET POSITION:
Net Investment in Capital Assets - - - 1,255,109 7,630,609 8,885,718
Restricted For:
Unrestricted 1,768,175 2,862,454 1,008,870 4,214,807 6,825,212 16,679,518
Total Net Position 1,768,175$ 2,862,454$ 1,008,870$ 5,469,916$ 14,455,821$ 25,565,236$
City of Auburn, WashingtonCOMBINING STATEMENT OF NET POSITION
INTERNAL SERVICE FUNDS
December 31, 2021
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Workers Comp Information Equipment
Insurance Self Insurance Facilities Services Rental Total
OPERATING REVENUES:
Charges for Services -$ 1,097,271$ 3,360,608$ 6,306,080$ 4,305,145$ 15,069,104$
Other Operating Revenue - - 36,250 52,641 - 88,891
Total Operating Revenues - 1,097,271 3,396,858 6,358,721 4,305,145 15,157,995
OPERATING EXPENSES:
Operations & Maintenance - 523,221 2,660,813 5,668,596 1,749,497 10,602,127
Administration 22,385 141,300 34,100 60,900 820,142 1,078,827
Depreciation/Amortization - - - 459,277 1,375,174 1,834,451
Total Operating Expenses 22,385 664,521 2,694,913 6,188,773 3,944,813 13,515,405
Operating Income (Loss)(22,385) 432,750 701,945 169,948 360,332 1,642,590
NON-OPERATING REVENUE (EXPENSE):
Interest Revenue 945 3,465 1,562 3,861 7,089 16,922
Other Non-Operating Revenues - - - - 118,851 118,851
Gain (Loss) on Sale of Capital Assets - - - - (28,785) (28,785)
Total Non-Operating Revenue (Expense)945 3,465 1,562 3,861 97,155 106,988
Income (Loss) Before Contributions (21,440) 436,215 703,507 173,809 457,487 1,749,578
Transfers In (Note 5)- - 76,582 130,152 291,773 498,507
Transfers Out (Note 5)- - (775,950) - (22,000) (797,950)
Change in Net Position (21,440) 436,215 4,139 303,961 727,260 1,450,135
Net Position, January 1 1,789,615 2,426,239 1,004,731 5,165,955 13,728,561 24,115,101
Total Net Position - Ending 1,768,175$ 2,862,454$ 1,008,870$ 5,469,916$ 14,455,821$ 25,565,236$
City of Auburn, Washington
COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION
INTERNAL SERVICE FUNDS
For the Year Ended December 31, 2021
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Page 1 of 2
Insurance
Workers
Comp Self
Insurance Facilities
Information
Services
Equipment
Rental Total
CASH FLOWS FROM OPERATING ACTIVITIES:
Cash Received From Users -$ 1,097,271$ 3,395,178$ 6,383,001$ 4,305,145$ 15,180,595$
Cash Paid to Suppliers for Goods & Services (39,048) (589,403) (1,733,388) (3,604,345) (1,320,427) (7,286,611)
Cash Paid to Employees - (150,351) (1,125,922) (2,966,084) (1,104,807) (5,347,164)
Other Cash Received - - - - 8,718 8,718
Net Cash Provided (Used) By Operating Activities (39,048) 357,517 535,868 (187,428) 1,888,629 2,555,538
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:
Transfers In - - 76,582 130,152 291,773 498,507
Transfers Out - - (775,950) - (22,000) (797,950)
Net Cash Provided (Used) by Non-Capital Financing Activities - - (699,368) 130,152 269,773 (299,443)
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES:
Proceeds from Sale of Equipment - - - - 295,219 295,219
Purchase of Capital Assets - - - (161,168) (1,766,520) (1,927,688)
Net Cash Provided (Used) for Capital and Related Financing Activities - - - (161,168) (1,361,168) (1,522,336)
CASH FLOW FROM INVESTING ACTIVITIES:
Interest Received 945 3,465 1,562 3,861 7,089 16,922
Net Cash Provided (Used) in Investing Activities 945 3,465 1,562 3,861 7,089 16,922
Net Increase (Decrease) in Cash and Cash Equivalents (38,103) 360,982 (161,938) (214,583) 804,323 750,681
Cash and Cash Equivalents - Beginning of Year 1,824,832 3,410,772 1,283,781 4,026,232 6,994,589 17,540,206
Cash and Cash Equivalents - End of Year 1,786,729$ 3,771,754$ 1,121,843$ 3,811,649$ 7,798,912$ 18,290,887$
CASH AT END OF YEAR CONSISTS OF:
Cash and Cash Equivalents 1,786,729 3,771,754 1,121,843 3,811,649 7,798,912 18,290,887
Total Cash 1,786,729$ 3,771,754$ 1,121,843$ 3,811,649$ 7,798,912$ 18,290,887$
City of Auburn, Washington
COMBINING STATEMENT OF CASH FLOWS
INTERNAL SERVICE FUNDS
For the Fiscal Year Ended December 31, 2021
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Page 2 of 2
Insurance
Workers
Comp Self
Insurance Facilities
Information
Services
Equipment
Rental Total
RECONCILIATION OF NET OPERATING INCOME TO NEW CASH
PROVIDED BY OPERATING ACTIVITIES
Operating Income (Loss)(22,385)$ 432,750$ 701,945$ 169,948$ 360,332$ 1,642,590$
ADJUSTMENTS TO RECONCILE OPERATING INCOME TO
NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES:
Depreciation - - - 459,277 1,375,174 1,834,451
Other Non-Operating Revenues - - - - 8,718 8,718
Asset (Increases) Decreases:
Accounts Receivable - - (1,680) 24,280 - 22,600
Inventory - - - - (53,604) (53,604)
Liability Increases (Decreases):
Accounts & Vouchers Payable (16,663) (69,513) 83,281 (281,452) 367,711 83,364
Wages & Benefits Payable - - (167,983) (617,854) (168,166) (954,003)
Compensated Absences Payable - (5,720) (79,695) 58,373 (1,536) (28,578)
Total Adjustments (16,663) (75,233) (166,077) (357,376) 1,528,297 912,948
Net Cash Provided (Used) by Operating Activities (39,048)$ 357,517$ 535,868$ (187,428)$ 1,888,629$ 2,555,538$
SCHEDULE OF NONCASH INVESTING, CAPITAL AND
FINANCING ACTIVITIES
Total Non Cash Investing, Capital and Financing Activities -$ -$ -$ -$ -$ -$
City of Auburn, Washington
COMBINING STATEMENT OF CASH FLOWS
INTERNAL SERVICE FUNDS
For the Fiscal Year Ended December 31, 2021
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City of Auburn: 2021 Annual Comprehensive Financial Report Statistical Section
155
City of Auburn
STATISTICAL SECTION
December 31, 2021
Financial Trends Information
Financial trends schedules are intended to provide users with information to assist them in understanding and assessing
how the City’s financial position has changed over time.
Schedule 1 Net position by components ............................................................................................... 156
Schedule 2 Changes in net position ...................................................................................................... 157
Schedule 3 Fund balances, government funds ....................................................................................... 158
Schedule 4 Changes in fund balances, government funds ...................................................................... 159
Schedule 5 Tax revenues by source, government funds ........................................................................ 160
Revenue Capacity Information
The objective of providing revenue capacity information is to help users understand and assess the factors affecting
the City’s ability to generate its most significant local source revenues.
Schedule 6 Assessed value by type ........................................................................................................ 161
Schedule 7 Property tax data ............................................................................................................... 162
Schedule 8 Property tax levies and collections ...................................................................................... 164
Schedule 9 Principal taxpayers-property taxes and sales taxes ................................................................ 165
Schedule 10 Retail tax collections by sector ............................................................................................ 166
Debt Capacity Information
Debt capacity information is intended to assist users to understand and assess the City’s current levels of outstanding
debt and ability to issue additional debt in the future.
Schedule 11 Ratios of outstanding debt by type ..................................................................................... 167
Schedule 12 Computation of legal debt margin ...................................................................................... 168
Schedule 13 Legal debt margin ratios ...................................................................................................... 168
Schedule 14 Computation of net direct and estimated overlapping debt ................................................. 169
Schedule 15 Ratios of net general bonded debt to assessed value ........................................................... 170
Schedule 16 Pledged revenue bond coverages ........................................................................................ 171
Demographic and Economic Information
These schedules offer demographic and economic information to assist users in understanding certain aspects of the
environment within which the City operates and to provide information that facilitates comparisons of financial
statement information over time and across governmental units.
Schedule 17 Population, income and housing trends ............................................................................... 172
Schedule 18 Major employers ................................................................................................................ 173
Operating Information
These schedules contain service and infrastructure data to help users understand how the information in the City’s
financial report relates to the services the City provides and the activities it performs.
Schedule 19 Staffing levels by department .............................................................................................. 174
Schedule 20 Operating indicators by department .................................................................................... 175
Schedule 21 Capital indicators by department ........................................................................................ 176
Schedule 22 Utility customers by customer class ...................................................................................... 177
City of Auburn: 2021 Annual Comprehensive Financial Report Statistical Section
156
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Governmental activities:
Net Investment in Capital Assets 354,899,294$ 346,195,793$ 348,080,505$ 361,094,242$ 367,128,894$ 373,368,906$ 375,208,981$ 372,887,236$ 372,441,433$ 373,890,921$
Restricted 13,164,116 15,019,909 16,404,328 19,470,880 26,745,270 29,854,240 30,001,950 33,911,413 32,842,097 38,133,392
Unrestricted 43,245,050 47,426,352 51,898,566 40,928,090 42,900,814 42,803,759 42,377,297 59,840,168 67,845,872 88,819,913
Total governmental activities net position 411,308,460 408,642,054 416,383,399 421,493,212 436,774,978 446,026,906 447,588,227 466,638,817 473,129,402 500,844,225
Business-type activities:
Net Investment in Capital Assets 173,709,864 165,619,867 169,098,916 187,604,782 195,490,061 205,677,614 208,136,620 212,172,136 208,850,752 228,161,102
Restricted 4,719,058 16,839,589 14,115,610 4,764,340 3,110,414 1,856,970 1,924,566 2,001,709 11,471,309 1,639,895
Unrestricted 30,439,381 32,880,216 37,724,080 32,974,662 40,797,698 41,627,494 49,088,740 56,928,121 63,474,681 69,517,542
Total business-type activities net position 208,868,303 215,339,672 220,938,606 225,343,784 239,398,173 249,162,078 259,149,926 271,101,966 283,796,742 299,318,539
Primary government:
Net Investment in Capital Assets 528,609,158 511,815,660 517,179,421 548,699,024 562,618,955 579,046,520 583,345,601 585,059,372 581,292,185 602,052,023
Restricted 17,883,174 31,859,498 30,519,938 24,235,220 29,855,684 31,711,210 31,926,516 35,913,122 44,313,406 39,773,287
Unrestricted 73,684,431 80,306,568 89,622,646 73,902,752 83,698,512 84,431,253 91,466,037 116,768,289 131,320,553 158,337,455
Total primary government net position 620,176,763$ 623,981,726$ 637,322,005$ 646,836,996$ 676,173,151$ 695,188,984$ 706,738,153$ 737,740,783$ 756,926,144$ 800,162,764$
Source: City of Auburn, Finance Department
City of Auburn, Washington
SCHEDULE 1
NET POSITION BY COMPONENTS
Last Ten Fiscal Years
(Accrual Basis of Accounting)
City of Auburn: 2021 Annual Comprehensive Financial Report Statistical Section
157
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Expenses
Governmental activities:
General government 9,441,887$ 7,508,112$ 8,363,427$ 9,187,539$ 9,557,602$ 10,384,647$ 10,191,329$ 13,292,724$ 12,332,380$ 12,837,356$
Public safety 27,339,301 27,423,015 27,144,153 29,883,217 32,117,837 32,746,406 30,337,791 24,016,496 37,951,994 32,440,701
Transportation 15,736,610 14,861,834 16,150,877 17,324,036 16,602,993 17,904,352 17,620,176 17,709,231 17,781,630 18,469,045
Physical environment 2,535,877 2,699,301 2,976,461 2,924,046 3,266,375 3,217,885 3,794,576 3,981,499 3,981,592 2,992,107
Culture and recreation 8,310,210 9,184,289 11,094,524 12,096,651 12,811,186 13,539,098 13,665,612 13,400,311 11,681,611 12,332,974
Economic environment 2,914,335 2,346,025 2,751,869 3,044,354 3,224,984 3,859,863 4,140,104 4,457,626 5,308,106 3,664,340
Health and human services 633,175 510,285 622,374 925,299 573,115 674,270 787,535 619,247 671,257 2,107,798
Interest on long-term debt 2,336,960 3,795,024 3,615,211 1,986,853 1,709,647 1,555,803 1,502,236 1,466,217 650,215 651,329
Total governmental activities expenses 69,248,355 68,327,885 72,718,896 77,371,995 79,863,739 83,882,324 82,039,359 78,943,351 90,358,785 85,495,650
Business-type activities:
Water 9,655,724 11,893,094 11,992,944 13,691,529 13,107,629 12,408,008 12,499,974 13,023,888 13,253,694 13,624,963
Sewer 19,680,724 21,584,215 23,026,216 23,992,161 25,685,370 25,360,718 26,213,221 26,907,482 26,004,990 26,829,991
Storm drainage 8,025,729 7,726,467 7,668,072 8,308,559 8,814,542 8,979,969 9,374,373 9,126,096 8,780,867 9,545,696
Solid waste 11,305,322 12,535,078 12,760,313 12,907,832 13,460,155 14,539,703 15,311,654 15,682,121 15,620,963 18,383,884
Golf course 1,912,174 1,933,597 - - - - - - - -
Non-major business-type activities 1,954,104 1,857,252 1,924,874 2,062,695 2,150,693 2,106,557 2,186,842 2,628,203 2,603,752 3,081,240
Total business-type activities expenses 52,533,777 57,529,703 57,372,419 60,962,776 63,218,389 63,394,955 65,586,064 67,367,790 66,264,266 71,465,774
Total primary government expenses 121,782,132$ 125,857,588$ 130,091,315$ 138,334,771$ 143,082,128$ 147,277,279$ 147,625,423$ 146,311,141$ 156,623,051$ 156,961,424$
Program revenues
Governmental activities:
Charges for services
General Government 897,521$ 893,326$ 1,160,198$ 1,243,263$ 939,184$ 1,241,905$ 1,462,867$ 3,758,197$ 3,584,821$ 4,545,962$
Public Safety 1,016,191 2,103,823 2,273,903 1,993,117 1,468,536 2,523,667 2,821,516 3,240,007 2,146,428 2,612,840
Transportation 1,819,851 1,967,778 1,660,270 1,446,026 3,265,147 2,118,980 886,760 3,207,197 2,103,258 4,239,115
Physical Environment 36,766 398,564 276,632 384,485 260,555 431,580 611,342 503,798 671,543 719,487
Culture and Recreation 880,380 873,970 2,876,185 3,052,599 2,508,166 3,073,262 3,355,206 3,183,370 2,191,540 3,409,793
Economic Environment 3,266,188 3,586,844 3,087,853 2,989,579 3,896,453 2,400,940 1,913,090 2,729,376 1,790,286 3,248,829
Total charges for services 7,916,897 9,824,305 11,335,041 11,109,069 12,338,041 11,790,334 11,050,781 16,621,946 12,487,875 18,776,026
Operating grants and contributions 3,560,707 1,967,252 1,333,652 4,234,309 2,767,931 2,257,646 2,831,794 3,394,916 6,904,118 4,877,951
Capital grants and contributions 17,835,784 5,955,062 6,001,230 19,526,548 13,275,208 13,229,502 9,065,857 6,461,827 9,455,065 11,838,148
Total governmental activities program revenues 29,313,388 17,746,619 18,669,923 34,869,926 28,381,180 27,277,482 22,948,432 26,478,689 28,847,058 35,492,125
Business-type activities:
Charges for services 50,710,688 57,533,735 60,332,817 63,391,139 65,733,943 68,220,200 69,723,671 70,315,493 68,966,638 73,687,356
Operating grants and contributions 97,052 90,361 111,025 106,286 106,286 106,286 106,286 106,286 106,286 -
Capital grants and contributions 7,248,835 5,483,344 5,070,810 5,821,857 10,574,852 4,363,568 4,566,838 6,686,288 6,518,995 13,400,812
Total business-type activities program revenues 58,056,575 63,107,440 65,514,652 69,319,282 76,415,081 72,690,054 74,396,795 77,108,067 75,591,919 87,088,168
Total primary government program revenues 87,369,963 80,854,059 84,184,575 104,189,208 104,796,261 99,967,536 97,345,227 103,586,756 104,438,977 122,580,293
Net (expense)/revenue
Governmental activities (39,934,967) (50,581,266) (54,048,973) (42,502,069) (51,482,559) (56,604,841) (59,090,927) (52,464,662) (61,511,727) (50,003,525)
Business-type activities 5,522,798 5,577,737 8,142,233 8,356,506 13,196,692 9,295,099 8,810,731 9,740,277 9,327,653 15,622,394
Total primary government net expense (34,412,169)$ (45,003,529)$ (45,906,740)$ (34,145,563)$ (38,285,867)$ (47,309,742)$ (50,280,196)$ (42,724,385)$ (52,184,074)$ (34,381,131)$
General revenues and other changes in net position
Governmental activities:
Taxes:
Property taxes 14,970,136$ 14,490,790$ 15,867,838$ 17,271,705$ 18,102,286$ 20,967,953$ 21,546,734$ 22,075,276$ 22,721,452$ 23,458,850$
Retail sales and use tax 16,679,278 18,335,157 19,744,684 21,125,730 21,475,335 22,333,454 21,996,115 22,212,601 21,900,597 25,289,050
Interfund utility taxes 3,281,816 3,892,250 4,068,667 4,260,831 4,624,951 4,540,265 4,552,505 4,760,229 4,543,436 7,101,829
Utility taxes 8,856,498 9,156,636 9,040,015 8,838,179 8,917,401 10,391,462 9,841,620 9,278,114 8,866,275 9,521,243
Excise taxes 2,141,620 2,555,850 2,888,797 4,999,517 5,057,013 4,141,146 4,393,134 5,650,339 4,580,114 6,463,047
Other taxes 4,679,333 4,429,090 4,601,925 4,722,482 5,160,215 5,253,964 5,213,217 4,751,163 3,846,314 5,031,185
Investment earnings 178,618 121,687 105,117 118,399 332,520 787,786 1,657,481 2,134,741 1,027,312 (114,738)
Miscellaneous 547,391 (4,625,627) 178,482 194,600 157,874 204,306 428,580 258,502 252,441 572,013
Transfers (513,428) (218,230) 5,294,793 (462,955) 424,173 454,436 414,975 394,287 264,371 395,869
Total governmental activities 50,821,262 48,137,603 61,790,318 61,068,488 64,251,768 69,074,772 70,044,361 71,515,252 68,002,312 77,718,348
Business-type activities:
Investment earnings 82,903 68,400 51,261 70,560 196,595 479,132 989,564 1,387,405 364,027 17,401
Miscellaneous 1,781,676 763,717 2,700,233 1,881,835 1,085,275 444,110 602,528 1,218,645 3,267,467 277,871
Transfers 513,428 218,230 (5,294,793) 462,955 (424,173) (454,436) (414,975) (394,287) (264,371) (395,869)
Total business-type activities:2,378,007 1,050,347 (2,543,299) 2,415,350 857,697 468,806 1,177,117 2,211,763 3,367,123 (100,597)
Total primary government 53,199,269$ 49,187,950$ 59,247,019$ 63,483,838$ 65,109,465$ 69,543,578$ 71,221,478$ 73,727,015$ 71,369,435$ 77,617,751$
Change in net position Before Change in Accounting Principle
Governmental activities 10,886,295 (2,443,663) 7,741,345 18,566,419 12,769,209 12,469,931 10,953,434 19,050,590 6,490,585 27,714,823
Business-type activities 7,900,805 6,628,084 5,598,934 10,771,856 14,054,389 9,763,905 9,987,848 11,952,040 12,694,776 15,521,797
Total primary government 18,787,100$ 4,184,421$ 13,340,279$ 29,338,275$ 26,823,598$ 22,233,836$ 20,941,282$ 31,002,630$ 19,185,361$ 43,236,620$
Change in Accounting Principle
Governmental activities - (222,743) - (13,456,606) 2,512,557 (3,218,004) (9,389,375) - - -
Business-type activities - (156,715) - (6,366,678) - - - - - -
Total primary government -$ (379,458)$ -$ (19,823,284)$ 2,512,557$ (3,218,004)$ (9,389,375)$ -$ -$ -$
Change in net position After Change in Accounting Principle
Governmental activities 10,886,295 (2,666,406) 7,741,345 5,109,813 15,281,766 9,251,927 1,564,059 19,050,590 6,490,585 27,714,823
Business-type activities 7,900,805 6,471,369 5,598,934 4,405,178 14,054,389 9,763,905 9,987,848 11,952,040 12,694,776 15,521,797 Total primary government 18,787,100$ 3,804,963$ 13,340,279$ 9,514,991$ 29,336,155$ 19,015,832$ 11,551,907$ 31,002,630$ 19,185,361$ 43,236,620$
Source: City of Auburn, Finance Department
City of Auburn, WashingtonSCHEDULE 2
CHANGES IN NET POSITION
Last Ten Fiscal Years
(Accrual Basis of Accounting)
City of Auburn: 2021 Annual Comprehensive Financial Report Statistical Section
158
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
General Fund
Nonspendable $370,400 $127 $127 $127 $0 $30,453 $38,179 $36,097 $47,085 $49,674
Assigned 5,935,567 5,892,611 4,045,598 7,284,159 7,160,098 9,315,528 9,375,470 17,118,273 11,257,547 9,204,036
Unassigned 17,395,933 17,751,778 20,914,093 20,267,776 24,991,081 25,414,801 24,627,984 19,068,746 30,634,592 38,646,995
Total General Fund 23,701,900 23,644,516 24,959,818 27,552,062 32,151,179 34,760,782 34,041,633 36,223,116 41,939,224 47,900,705
All other governmental funds
Nonspendable 1,475,580 1,536,316 1,574,148 1,585,707 1,666,043 1,717,134 1,775,453 1,826,063 1,925,183 2,010,357
Restricted 11,688,536 13,483,593 14,830,180 17,885,173 25,079,227 28,137,106 28,226,498 32,085,350 30,916,914 36,123,035
Committed 3,258,257 3,242,662 5,066,181 3,658,719 5,421,640 3,223,108 3,079,656 3,172,152 3,910,112 5,283,101
Assigned 2,388,684 4,976,833 4,725,119 4,755,182 1,226,315 1,221,511 2,827,045 2,239,557 1,906,717 1,579,346
Total All Other Governmental Funds 18,811,057$ 23,239,404$ 26,195,628$ 27,884,781$ 33,393,225$ 34,298,859$ 35,908,652$ 39,323,122$ 38,658,926$ 44,995,839$
Source: City of Auburn, Finance Department
City of Auburn, Washington
SCHEDULE 3
FUND BALANCES, GOVERNMENT FUNDS
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
City of Auburn: 2021 Annual Comprehensive Financial Report Statistical Section
159
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Revenues
Taxes 46,003,582$ 48,545,041$ 51,718,489$ 56,632,337$ 58,279,984$ 62,425,246$ 62,430,346$ 64,032,701$ 62,638,993$ 71,897,684$
Licenses and permits 2,344,643 3,041,948 2,400,662 2,074,432 3,005,125 1,906,796 1,853,554 2,825,404 2,086,579 2,980,103
Intergovernmental 20,045,299 11,854,984 9,379,699 13,620,446 12,714,010 16,187,560 12,234,229 11,137,941 14,734,337 13,771,035
Charges for services 4,006,762 3,891,776 5,717,712 7,321,295 11,563,678 7,117,774 6,471,503 10,467,203 8,670,078 12,437,155
Fines and forfeits 1,592,957 1,441,603 1,258,408 938,775 905,921 882,254 920,187 914,240 635,209 434,042
Special assessments 39,115 40,772 472,800 7,494 4,111 3,835 2,210 2,807 712 591
Investment earnings 200,826 144,151 135,709 117,942 279,058 672,713 1,308,888 1,767,742 1,005,175 (187,615)
Miscellaneous 871,191 621,673 1,691,274 1,890,419 1,854,450 1,966,333 1,600,279 2,406,291 774,011 2,227,176
Total revenues 75,104,375 69,581,948 72,774,753 82,603,140 88,606,337 91,162,511 86,821,196 93,554,329 90,545,094 103,560,171
Expenditures
General government 8,761,452 7,300,667 7,712,018 8,661,592 8,936,366 9,755,757 9,804,631 12,688,544 11,951,230 13,138,358
Public safety 24,039,435 27,146,590 27,264,294 29,164,772 30,809,069 32,084,376 34,226,582 36,322,025 36,790,348 38,989,056
Transportation 20,766,134 15,119,530 8,979,583 16,323,425 12,607,616 20,652,538 15,512,706 11,641,856 10,102,948 12,831,014
Physical environment 2,526,526 2,855,908 3,086,738 2,991,145 3,309,993 3,359,548 4,128,266 4,372,251 4,339,008 3,985,974
Economic environment 2,876,558 2,692,389 2,783,898 3,066,674 3,324,309 3,880,025 4,314,648 4,699,552 5,587,597 4,240,428
Health and human services 616,583 631,997 626,681 925,299 573,115 674,270 787,535 619,247 821,362 2,192,261
Culture and recreation 7,228,345 7,925,325 9,759,110 10,700,680 11,480,488 11,943,070 12,450,884 12,437,720 10,571,483 11,953,562
Capital outlay (1)4,007,018 2,746,599 3,394,886 3,580,304 6,784,343 2,096,281 2,145,994 3,270,129 3,743,808 2,955,695
Debt service:
Principal 1,219,137 2,238,181 2,704,468 1,713,940 1,737,569 1,635,126 1,676,777 1,437,533 1,738,594 1,239,178
Interest / other 2,245,858 2,709,768 2,892,281 1,801,109 1,632,786 1,590,525 1,537,504 1,478,169 822,678 847,629
Total expenditures 74,287,046 71,366,954 69,203,957 78,928,940 81,195,654 87,671,516 86,585,527 88,967,026 86,469,056 92,373,155
Excess of revenues
over (under) expenditures 817,329 (1,785,006) 3,570,796 3,674,200 7,410,683 3,490,995 235,669 4,587,303 4,076,038 11,187,016
Other financing sources (uses)
Transfers in 6,643,116 4,776,100 5,309,769 7,100,830 11,121,265 7,050,817 8,205,317 6,477,764 12,216,778 9,703,240
Transfers out (7,005,097) (4,450,925) (5,003,448) (6,668,626) (11,182,611) (7,163,278) (7,838,860) (5,646,268) (11,430,226) (9,007,928)
Insurance recoveries 291,210 192,898 136,585 153,041 83,737 134,003 288,518 177,154 189,322 416,066
Issuance of debt - 3,044,491 240,366 - 3,128,732 - - - - -
Issuance of refunding bond - - - - 38,198 - - - 19,480,000 -
Debt Premium - - - - - - - - 3,989,749 -
Payment to escrow agent - refunded bond - - - - (3,005,000) - - - (23,469,749) -
Sales of capital assets 800 2,593,405 17,458 21,952 - 2,700 - - - -
Total other financing sources (uses)(69,971) 6,155,969 700,730 607,197 184,321 24,242 654,975 1,008,650 975,874 1,111,378
Net change in fund balances 747,358$ 4,370,963$ 4,271,526$ 4,281,397$ 7,595,004$ 3,515,237$ 890,644$ 5,595,953$ 5,051,912$ 12,298,394$
Debt service as a percentage of noncapital 6.64% 8.71% 10.68% 5.50% 5.14% 4.66% 4.38% 3.72% 3.36% 2.58%
expenditures
(1)Capital outlay reported in governmental funds for 2021 are $2,955,695 plus $8,428,438 which is reported for each functional
activity with the other funds results in total capital outlay of $11,384,133 as reported on the Reconciliation of the
Statement of Revenues, Expenditures, and Changes in Fund Balances of Government Funds to the Statement of Activities.
Source: City of Auburn, Finance Department
City of Auburn, Washington
SCHEDULE 4
CHANGES IN FUND BALANCES, GOVERNMENT FUNDS
Last Ten Fiscal Years
(Modified Accrual Basisi of Accouting)
City of Auburn: 2021 Annual Comprehensive Financial Report Statistical Section
160
Fiscal Sales Interfund
Year Property & Use Utility Utility Excise Other Total
2012 14,987,636 16,679,278 3,281,816 8,856,498 2,141,620 56,734 46,003,582
2013 14,535,673 18,335,157 3,892,250 9,156,636 2,555,850 69,475 48,545,041
2014 15,933,338 19,744,684 4,068,667 9,040,015 2,888,797 42,988 51,718,489
2015 17,337,108 21,125,730 4,260,831 8,838,179 4,999,517 70,972 56,632,337
2016 18,067,324 21,475,335 4,624,951 8,917,401 5,057,013 137,960 58,279,984
2017 20,976,384 22,333,454 4,540,265 10,391,462 4,141,146 42,535 62,425,246
2018 21,561,924 21,996,115 4,552,505 9,841,620 4,393,134 85,048 62,430,346
2019 22,057,841 22,212,601 4,760,229 9,278,114 5,650,339 73,577 64,032,701
2020 22,688,696 21,900,597 4,543,436 8,866,275 4,580,114 59,875 62,638,993
2021 23,480,894 25,289,050 7,101,829 9,521,243 6,463,047 41,621 71,897,684
Change
2012-2021 56.7% 51.6% 116.4% 7.5% 201.8% -26.6% 56.3%
Source: City of Auburn, Finance Department
TAX REVENUES BY SOURCE, GOVERNMENT FUNDS
Last Ten Fiscal Years
SCHEDULE 5
City of Auburn, Washington
City of Auburn: 2021 Annual Comprehensive Financial Report Statistical Section
161
State Total Total
Fiscal Property Personal Land and Assessed Direct
Year and Other Property Building Value Rate
2012 124,204 709,024 6,392,321 7,225,550 2.08
2013 124,230 745,891 6,098,598 6,968,719 2.10
2014 132,854 880,015 6,409,300 7,422,169 2.17
2015 146,941 911,493 7,308,219 8,366,653 2.08
2016 156,673 958,859 7,851,588 8,967,119 2.05
2017 171,829 957,161 8,592,887 9,721,877 2.20
2018 169,543 918,637 9,611,541 10,699,721 2.03
2019 171,044 733,264 10,585,207 11,489,515 1.92
2020 165,647 832,886 11,381,503 12,380,036 1.82
2021 173,560 602,789 12,592,421 13,368,770 1.77
Source: King County Dept of Assessments & Pierce County Assessor-Treasurer
(Amounts Expressed in Thousands)
City of Auburn, Washington
SCHEDULE 6
ASSESSED VALUE BY TYPE
Last Ten Fiscal Years
City of Auburn: 2021 Annual Comprehensive Financial Report Statistical Section
162
Page 1 of 2
Item 2012 2013 2014 2015
Assessed and estimated actual values (1)
Estimated and actual value (in thousands)7,225,550$ 6,968,719$ 7,422,169$ 8,366,653$
Assessed value (in thousands)7,225,550 6,968,719 7,422,169 8,366,653
Ratio of assessed to actual 100% 100% 100% 100%
Property tax rates (1)
Direct regular and special
General fund 2.07527$ 2.10000$ 2.16739$ 2.08085$
Subtotal 2.07527 2.10000 2.16739 2.08085
Overlapping regular and special (1)
Auburn School District 6.14004$ 6.62190$ 6.50262$ 6.14079$
King County 1.41588 1.54051 1.51605 1.34522
State of Washington 2.42266 2.56720 2.47044 2.28514
Port of Seattle 0.22982 0.23324 0.21533 0.18885
Sound Transit - - - -
Emergency Medical Services 0.30000 0.30000 0.33500 0.30217
Hospital District 0.50000 0.50000 0.50000 0.50000
King County Library District 0.56992 0.56743 0.56175 0.50276
Valley Regional Fire Authority 1.18925 1.20479 1.20294 1.18043
King County Flood Zone 0.11616 0.13210 0.15369 0.13860
King County Ferry District 0.00372 0.00378 0.00349 -
Subtotal 12.88745 13.67095 13.46131 12.58396
Total direct and overlapping 14.96272$ 15.77095$ 15.62870$ 14.66481$
Sources:
(1) King County and Pierce County Departments of Assessments; real and personal property
has been assessed at 100% of the estimated actual value.
City of Auburn, Washington
SCHEDULE 7
PROPERTY TAX DATA
Last Ten Fiscal Years
City of Auburn: 2021 Annual Comprehensive Financial Report Statistical Section
163
Page 2 of 2
2016 2017 2018 2019 2020 2021
8,967,119$ 9,721,877$ 10,699,721$ 11,489,516$ 12,380,036$ 13,368,770$
8,967,119 9,721,877 10,699,721 11,489,516 12,380,036 13,368,770
100% 100% 100% 100% 100% 100%
2.04719$ 2.19668$ 2.03239$ 1.92435$ 1.81928$ 1.76739$
2.04719 2.19668 2.03239 1.92435 1.81928 1.76739
5.82831$ 6.74299$ 6.29971$ 3.81351$ 5.19948$ 5.20244$
1.48027 1.38294 1.32735 1.21906 1.23953 1.24688
2.16898 2.03205 2.91820 2.62922 3.02799 3.08823
0.16954 0.15334 0.13518 0.12266 0.11944 0.11984
- 0.25000 0.22745 0.20700 0.19937 0.19709
0.28235 0.26305 0.23940 0.21762 0.26500 0.26499
0.50000 0.50089 0.45689 0.41673 0.40069 0.38511
0.47714 0.45118 0.41190 0.37441 0.36040 0.35733
1.13495 1.06821 0.98189 0.92352 0.86897 1.10439
0.12980 0.11740 0.10708 0.09660 0.09199 0.08909
- - - - - -
12.17134 12.96205 13.10505 10.02033 11.77286 12.05539
14.21853$ 15.15873$ 15.13744$ 11.94468$ 13.59214$ 13.82278$
City of Auburn: 2021 Annual Comprehensive Financial Report Statistical Section
164
Total Tax Collections
Fiscal Levy for in Subsequent Current Year
Year Fiscal Year Amount % of Levy Years Amount % of Levy Levy Balance
King County:
2012 13,389,558 13,167,731 98.3% 226,410 13,394,141$ 100.0%(4,583)$
2013 12,884,878 12,673,712 98.4% 222,207 12,895,919 100.1%(11,041)
2014 14,182,244 13,970,560 98.5% 189,292 14,159,852 99.8% 22,392
2015 15,387,637 15,226,048 98.9% 176,963 15,403,011 100.1%(15,374)
2016 16,033,819 15,897,626 99.2% 190,976 16,088,602 100.3%(54,783)
2017 18,647,980 18,418,844 98.8% 217,262 18,636,106 99.9% 11,874
2018 19,097,241 18,872,111 98.8% 207,772 19,079,883 99.9% 17,358
2019 19,543,743 19,298,789 98.7% 198,617 19,497,406 99.8% 46,337
2020 20,042,110 19,775,977 98.7% 187,767 19,963,744 99.6% 78,365
2021 20,706,155 20,480,037 98.9%- 20,480,037 98.9% 226,118
316,663$
Pierce County:
2012 1,495,390 1,478,223 98.9% 17,166 1,495,390$ 100.0%(0)$
2013 1,484,398 1,471,129 99.1% 13,269 1,484,398 100.0%0
2014 1,595,675 1,586,010 99.4% 9,665 1,595,675 100.0%0
2015 1,746,163 1,738,447 99.6% 7,716 1,746,163 100.0%(0)
2016 1,867,636 1,857,614 99.5%10,022 1,867,636 100.0%(0)
2017 2,237,907 2,229,137 99.6% 8,770 2,237,907 100.0%(0)
2018 2,320,452 2,312,378 99.7% 8,073 2,320,452 100.0%0
2019 2,389,591 2,383,037 99.7% 6,084 2,389,121 100.0%470
2020 2,434,937 2,433,602 99.9%2,433,602 99.9%1,334
2021 2,514,808 2,505,423 99.6%2,505,423 99.6%9,384
11,188$
Total current levy balance 327,851$
Source: King County Finance and Business Operations Division
Pierce County Budget and Finance Department
Fiscal Year of the Levy Total Collections to Date
City of Auburn, Washington
SCHEDULE 8
PROPERTY TAX LEVIES AND COLLECTIONS
Last Ten Fiscal Years
Collected Within the
City of Auburn: 2021 Annual Comprehensive Financial Report Statistical Section
165
Percentage Percentage
of Total City of Total City
Assessed Taxable Assessed Taxable
Taxpayer Value Rank Assessed Value Value Rank Assessed Value
Boeing 985,804,297$ 1 7.37%468,071,713$ 1 6.48%
EProperty Tax Inc.181,697,000 2 1.36%72,683,500 4 1.01%
Safeway 161,197,463 3 1.21%79,636,302 3 1.10%
PPF Industrial 153,373,700 4 1.15%43,795,600 9 0.61%
Principal Life Insurance Co.140,277,900 5 1.05%N/A N/A
Glimcher Supermall Venture 118,903,605 6 0.89%83,858,955 2 1.16%
Prologis 117,897,900 7 0.88%N/A N/A
NUVEEN 88,004,500 8 0.66%N/A N/A
Puget Sound Energy 83,328,821 9 1.36%59,804,161 6 0.83%
KW Lakeland LLC 73,288,800 10 0.55%N/A N/A
Universal Health N/A 67,280,010 5 0.93%
Belara Communities LLC N/A 48,145,500 8 0.67%
Muckleshoot Indian Tribe N/A 56,630,000 7 0.78%
Qwest Corporation N/A 24,148,433 10 0.33%
TOTALS 2,103,773,986$ 16.47% 1,004,054,174$ 13.90%
Source: King County and Pierce County Departments of Assessments
Total assessed value for 2021:13,368,769,816$
Total assessed value for 2012:7,225,549,856$
2021 2012
City of Auburn, WashingtonSCHEDULE 9aPRINCIPAL TAXPAYERS-PROPERTY TAXESCurrent Year and Ten Years Ago
0%
5%
10%
15%
20%
25%
2021 2012
FIGURE 9a-2: TOP 10 TAXPAYERS ASSESSED VALUE AS A PERCENTAGE OF TOTAL ASSESSED VALUE
Current Year and Ten Years Ago
0%
5%
10%
15%
20%
25%
2021 2012
FIGURE 9a-1: TOP TAXPAYER ASSESSED VALUE AS A PERCENTAGE OF TOTAL ASSESSED VALUE
Current Year and Ten Years Ago
Percentage Percentage
Sales of Total City Sales of Total City
Tax Sales Taxes Tax Sales Taxes
Received Sector (1)Rank Received Received Sector (1)Rank Received
705,872$ Automotive 1 3.3%436,288$ General Retail 1 3.3%
518,154 Automotive 2 2.4%311,437 Automotive 2 2.4%
507,888 Retail Trade 3 2.3%301,142 Automotive 3 2.3%
492,513 Automotive 4 2.3%282,442 Automotive 4 2.2%
387,731 Automotive 5 1.8%242,384 Automotive 5 1.9%
386,857 Automotive 6 1.8%230,114 Automotive 6 1.8%
371,316 Construction 7 1.7%223,789 Retail Trade 7 1.7%
367,525 Retail Trade 8 1.7%214,560 Retail Trade 8 1.6%
346,158 Construction 9 1.6%212,602 Manufacturing 9 1.6%
342,280 Automotive 10 1.6%200,059 Automotive 10 1.5%
4,426,294$ 20.4% 2,654,817$ 20.4%
Source: Washington State Department of Revenue
(1) It is illegal to disclose specific taxpayer sales tax information, so the above information is being provided
without identification.
2021 2012
City of Auburn, Washington
SCHEDULE 9b
PRINCIPAL TAXPAYERS-SALES TAXES
Current Year and Ten Years Ago
City of Auburn: 2021 Annual Comprehensive Financial Report Statistical Section
166
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
RETAIL TRADE SECTOR
Automotive/gas 3,019$ 3,136$ 3,309$ 3,707$ 3,659$ 3,972$ 4,122$ 4,069$ 3,827$ 4,555$
Furniture 226 235 254 254 185 197 210 222 209 290
Electronics & appliances 145 174 237 295 221 211 229 277 300 344
Building materials 425 447 502 590 579 580 576 652 751 803
Food stores 341 335 353 368 397 369 388 406 451 487
Health & personal care 149 174 188 221 284 369 420 426 348 391
Apparel 772 889 1,009 1,080 1,136 1,119 1,170 1,236 873 1,123
General merchandise 967 974 955 988 1,018 993 221 818 878 917
Misc. retail trade 897 990 1,182 1,193 1,032 1,033 1,827 1,399 1,689 2,107
Subtotal - Retail Trade 6,943 7,354 7,989 8,695 8,512 8,843 9,163 9,506 9,327 11,017
SERVICE SECTOR
Information 396$ 446$ 487$ 526$ 630$ 662$ 638$ 668$ 685$ 760$
Finance & insurance 53 91 88 95 111 122 140 138 178 158
Real estate, rental, leasing 326 279 315 334 359 368 368 434 369 449
Professional, scientific, technical 173 184 216 195 238 239 254 344 394 482
Administrative, supply & remediation services 334 336 350 383 329 276 424 524 652 792
Educational 54 50 49 60 50 56 47 46 40 44
Healthcare & social services 115 33 66 82 92 75 93 93 111 99
Arts & entertainment 153 149 158 208 156 110 119 120 50 74
Accommodation & food service 921 979 1,067 1,159 1,218 1,276 1,435 1,469 1,205 1,429
Other services 530 507 526 603 788 728 711 609 537 637
Subtotal - Services 3,056 3,054 3,322 3,646 3,970 3,912 4,229 4,445 4,220 4,924
OTHER SECTORS
Construction 1,221$ 1,943$ 1,754$ 2,297$ 2,292$ 2,632$ 2,310$ 2,193$ 3,068$ 3,034$
Manufacturing 405 624 1,163 862 761 678 754 821 390 501
Transportation 55 46 71 66 99 89 120 89 197 373
Wholesaling 1,297 1,279 1,205 1,229 1,265 1,363 1,469 1,496 1,346 1,424 Other business 61 64 120 72 67 65 154 265 308 410
Subtotal - Other 3,038 3,956 4,312 4,525 4,485 4,827 4,807 4,863 5,309 5,742
GRAND TOTAL 13,037$ 14,364$ 15,623$ 16,866$ 16,967$ 17,582$ 18,198$ 18,814$ 18,856$ 21,683$
OVERLAPPING SALES TAX RATES
Basic sales tax rates
City of Auburn 0.85% 0.85% 0.85% 0.85% 0.85% 0.85% 0.85% 0.85% 0.85% 0.85%
Washington State 6.50% 6.50% 6.50% 6.50% 6.50% 6.50% 6.50% 6.50% 6.50% 6.50%
King County 0.25% 0.25% 0.25% 0.25% 0.25% 0.25% 0.25% 0.25% 0.25% 0.25%
Regional Transit Authority 0.90% 0.90% 0.90% 0.90% 0.90% 0.90%1.40% 1.40% 1.40% 1.50%
Metro 0.90% 0.90% 0.90% 0.90% 0.90% 0.90% 0.90% 0.90% 0.90% 0.90%
Criminal Justice 0.10% 0.10% 0.10% 0.10% 0.10% 0.10% 0.10% 0.10% 0.10% 0.10% Total basic sales tax rate 9.50% 9.50% 9.50% 9.50% 9.50% 9.50%10.00% 10.00% 10.00% 10.10%
Special sales tax rates
Restaurants-for stadium funding (1)0.50% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
Motor vehicles 0.30% 0.30% 0.30% 0.30% 0.30% 0.30% 0.30% 0.30% 0.30% 0.30%
(1) This tax expired on October 1, 2011
Source: City of Auburn Finance Department and State of Washington
(Amounts Expressed in Thousands)
City of Auburn, Washington
SCHEDULE 10RETAIL TAX COLLECTIONS BY SECTORLast Ten Fiscal Years
City of Auburn: 2021 Annual Comprehensive Financial Report Statistical Section
167
General Public Works Public Works Total Percentage
Fiscal Obligation Trust Fund Capital Revenue Trust Fund Primary of Personal Per
Year Bonds Loans Leases Bonds Loans Government (2)Income (1)Capita
2012 61,900,771$ 1,286,125$ 524,498$ 23,057,333$ 7,401,474$ 94,170,201$ 5.05% 1,321.87
2013 59,568,505 4,239,813 480,771 34,292,569 8,203,090 106,784,748 5.57% 1,458.11
2014 57,367,766 4,284,173 435,068 32,813,473 7,524,538 102,425,018 5.12% 1,372.44
2015 55,094,519 4,086,797 569,773 31,304,378 7,563,847 98,619,314 4.85% 1,305.44
2016 54,245,944 3,889,421 476,635 28,545,000 7,522,767 94,679,767 4.48% 1,228.65
2017 50,766,661 3,692,045 382,914 28,161,699 6,702,388 89,705,707 4.07%1,136.09
2018 48,427,873 3,494,669 282,461 26,523,113 5,866,029 84,594,145 3.58% 1,049.36
2019 42,703,404 3,297,294 173,692 24,829,528 4,967,012 75,970,930 2.98% 929.65
2020 41,060,378 3,099,918 - 37,460,053 4,351,217 85,971,566 3.10%1,049.20
2021 39,156,176 2,902,542 - 35,131,084 3,584,955 80,774,757 2.60% 917.06
Sources: City of Auburn, Finance Department
(1) Personal income data provided by US Census Bureau estimate for 2013, 2012, 2011; Hebert Research for 2010 only;
other years are city estimates
(2) Excludes compensated absences
City of Auburn, Washington
Last Ten Fiscal Years
Governmental Activities Business-type Activities
RATIOS OF OUTSTANDING DEBT BY TYPE
SCHEDULE 11
City of Auburn: 2021 Annual Comprehensive Financial Report Statistical Section
168
Parks and Utility Total
Councilmanic Excess Levy Open Spaces Purpose Capacity
December 31, 2021 - Total Assessed Value:
14,386,393,795$
2.5% of Assessed Value -$ 359,659,845$ 359,659,845$ 359,659,845$ 1,078,979,535$
1.5% of Assessed Value 215,795,907 (215,795,907) - - -
Statutory Debt Limit 215,795,907 143,863,938 359,659,845 359,659,845 1,078,979,535
Debt Outstanding 38,474,375 - - - 38,474,375
Net Debt Outstanding 38,474,375 - - - 38,474,375
Remaining Debt Capacity 177,321,532$ 143,863,938$ 359,659,845$ 359,659,845$ 1,040,505,160$
General Capacity Special Purpose Capacity
City of Auburn, Washington
SCHEDULE 12
COMPUTATION OF LEGAL DEBT MARGIN
As of December 31, 2021
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Debt Limit 518,188$ 546,602$ 617,872$ 661,996$ 716,628$ 791,936$ 854,513$ 923,770$ 990,892$ 1,078,980$
Total net debt
applicable to limit 63,815 64,047 61,892 59,409 57,152 54,208 52,097 46,115 40,356 38,474
Legal debt margin 454,372$ 482,554$ 555,980$ 602,588$ 659,476$ 737,728$ 802,416$ 877,655$ 950,535$ 1,040,505$
Total net debt
applicable to the limit
as a percentage of debt limit 12.32% 11.72%10.02%8.97% 7.98% 6.85%6.10%4.99% 4.07% 3.57%
City of Auburn, Washington
SCHEDULE 13
LEGAL DEBT MARGIN RATIOS
Last Ten Fiscal Years
(Expressed in Thousands)
City of Auburn: 2021 Annual Comprehensive Financial Report Statistical Section
169
Net Debt Percent Bonded Amount
Outstanding Applicable (3)Applicable
Net direct debt:
Net direct debt - City of Auburn (1)42,058,718$
Estimated net overlapping debt: (2)
King County 962,255,000$ 1.80%17,320,590$
Port of Seattle 281,355,000 1.80%5,064,390
School District No. 210 432,680,000 58.12%251,473,616
School District No. 408 488,985,000 81.06%396,371,241
School District No. 415 236,781,000 1.67%3,954,243
Rural Library District 44,335,000 3.00%1,330,050
Valley Regional Fire Authority 8,115,000 89.42%7,256,433
Pierce County 118,905,000 0.89%1,058,255
Total estimated net overlapping debt 683,828,817
Total direct and overlapping debt 725,887,535$
Sources:
(1) Includes both bonded and non bonded debt related to government activities. From Sch. 8 Changes in LT Liabilities
(2) Overlapping governments
(3) King County Assessors office and Pierce County Assessors office.
Calculation of overlapping debt: applicable percentage is determined by the ratio of assessed valuation of taxable property
in overlapping unit to valuation of property subject to taxation in the City of Auburn.
COMPUTATION OF NET DIRECT AND ESTIMATED OVERLAPPING DEBT
As of December 31, 2021
City of Auburn, Washington
SCHEDULE 14
City of Auburn: 2021 Annual Comprehensive Financial Report Statistical Section
170
Ratio
of Net
Debt Net Bonded Net
Assessed Net Service Bonded Debt to Bonded
Fiscal Value (1)Bonded Amount (3)Debt Assessed Debt per
Year Population (Thousands) Debt (2)Available (Thousands) Value Capita
2012 71,240 7,225,550$ 61,900,771$ 46,155$ 61,855$ 0.86% 869$
2013 73,235 6,968,719 59,568,505 - 59,569 0.85% 813
2014 74,630 7,422,169 57,367,766 - 57,368 0.77% 769
2015 75,545 8,366,653 55,094,519 - 55,095 0.66% 729
2016 77,060 8,967,119 54,245,944 - 54,246 0.60% 704
2017 78,960 9,721,877 50,766,661 - 50,767 0.52% 643
2018 80,615 10,699,721 48,427,873 - 48,428 0.45%601
2019 81,720 11,489,516 42,703,404 - 42,703 0.37% 523
2020 81,940 12,380,036 41,060,378 - 41,060 0.33%501
2021 88,080 13,368,770 39,156,176 - 39,156 0.29% 445
Notes:
(1) From Schedule 7
(2) General Obligation Debt related to government activities, from Schedule 11.
(3) Fund balance from debt service fund.
RATIOS OF NET GENERAL BONDED DEBT TO ASSESSED VALUE
AND GROSS BONDED DEBT PER CAPITA
Last Ten Fiscal Years
City of Auburn, Washington
SCHEDULE 15
City of Auburn: 2021 Annual Comprehensive Financial Report Statistical Section
171
Direct(2)Debt Service Requirements
Gross (1)Operating Net Revenue Times
Year Revenue Expense Available Principal Interest Total (3)Coverage
2012 38,119,472$ 30,974,506$ 7,144,966$ 1,013,830$ 1,248,612$ 2,262,442$ 3.16
2013 42,406,722 36,406,640 6,000,082 1,028,830 1,277,285 2,306,115 2.60
2014 46,900,016 35,502,812 11,397,204 1,943,830 1,508,405 3,452,235 3.30
2015 49,673,159 38,425,799 11,247,360 2,197,667 1,599,347 3,797,014 2.96
2016 50,385,548 38,614,719 11,770,829 2,231,093 1,563,433 3,794,526 3.10
2017 51,771,171 38,726,814 13,044,357 2,326,117 1,523,830 3,849,947 3.39
2018 53,103,312 39,020,666 14,082,646 2,422,369 1,494,706 3,917,075 3.60
2019 53,910,487 39,330,641 14,579,846 2,482,692 1,391,468 3,874,160 3.76
2020 51,149,771 38,530,032 12,619,739 2,553,276 1,334,334 3,887,610 3.25
2021 54,013,161 41,094,457 12,918,704 2,626,262 1,450,352 4,076,614 3.17
Source: City of Auburn, Finance Department
(1) Includes water, sewer & storm drainage operating, interest and other revenues.
(2) Includes water, sewer & storm drainage operating expenses less depreciation.
(3) Includes both parity and non-parity debt.
PLEDGED REVENUE BOND COVERAGES
Last Ten Fiscal Years
City of Auburn, Washington
SCHEDULE 16
City of Auburn: 2021 Annual Comprehensive Financial Report Statistical Section
172
Item 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
School enrollment (1)14,596 14,971 15,277 15,663 15,945 16,525 16,949 17,300 16,702 16,880
Rate of unemployment (2)7.5%6.0%5.4% 4.9% 4.4% 4.4% 4.2% 3.5% 9.5% 6.4%
Population (3)71,240 73,235 74,630 75,545 77,060 78,960 80,615 81,720 81,940 88,080
Personal income (thousands of dollars) (4)1,871,973$ 1,917,219$ 2,000,606$ 2,033,520$ 2,111,829$ 2,206,142$ 2,365,567$ 2,552,034$ 2,769,162$ 3,108,167$
Per capita personal income (4)26,277$ 26,179$ 26,807$ 26,918$ 27,405$ 27,940$ 29,344$ 31,229$ 33,795$ 35,288$
Housing units (5)
One unit 14,957 15,393 15,804 16,042 16,167 16,373 16,616 16,674 17,046 17,128
Two or more 10,631 10,841 10,841 10,847 10,854 11,110 11,417 12,008 12,230 12,532
Mobile home or special 2,618 2,630 2,631 2,637 2,630 2,675 2,659 2,663 2,671 2,674
Total housing units 28,206 28,864 29,276 29,526 29,651 30,158 30,692 31,345 31,947 32,334
Sources:
(1) Auburn School District No. 408
(2) Bureau of Labor Statistics (BLS)
(3) WA State Office of Financial Management
(4) US Census Bureau
(5) WA State Office of Financial Management
City of Auburn, Washington
SCHEDULE 17
POPULATION, INCOME AND HOUSING TRENDS
Last Ten Fiscal Years
City of Auburn: 2021 Annual Comprehensive Financial Report Statistical Section
173
Percentage Percentage
of Total City of Total City
Employer Product/service Employees Rank Employment Employees Rank Employment
The Boeing Company Aerospace 3,599 1 8.7%3,970 1 12.0%
The Outlet Collection*Retail 3,125 2 7.6%1,100 4 3.3%
Auburn School District Education 2,439 3 5.9%1,850 2 5.6%
Multicare Auburn Medical Center**Hospital 1,708 4 4.1%635 5/6 1.9%
Muckleshoot Tribal Enterprises Gaming 1,370 5 3.3%1,500 3 4.5%
Green River College Education 1,067 6 2.6%635 5/6 1.9%
Safeway Distribution Center Distribution 785 7 1.9%0.0%
Costco Wholesale Optical Distribution 705 8
Social Security Administration Gov't / Public Offices 552 9 1.3%600 7 1.8%
Ply Gem Pacific Windows Corp Manufacturing 540 10 1.3%
Zones, Inc.Technology Reseller 0.0%500 8/9 1.5%
Federal Aviation Administration Federal Government 0.0%450 10 1.4%
Emerald Downs Racetrack Gaming 0.0%500 8/9 1.5%
City of Auburn City government 0.0%
General Services Administration Federal Government 0.0%0.0%
LMI Aerospace Manufacturing 0.0%
Skills, Inc Manufacturing 0.0%0.0%
Totals 15,890 38.4%11,740 35.5%
2021 - City of Auburn, Economic Development
2012 - City of Auburn ACFR
* Previously the Supermall.
**Previously Auburn Regional Medical Center.
2021 2012
City of Auburn, Washington
SCHEDULE 18
MAJOR EMPLOYERS
Current Year and Ten Years Ago
0%
20%
40%
60%
80%
100%
2012 2021
FIGURE 18a: AUBURN EMPLOYMENT BASE
PERCENTAGE OF TOP EMPLOYER COMPARED TO ALL
EMPLOYERS
Last Ten Fiscal Years
Top employer
All employers
0%
20%
40%
60%
80%
100%
2012 2021
FIGURE 18b: AUBURN EMPLOYMENT BASE PERCENTAGE
OF TOP 10 EMPLOYERS COMPARED TO ALL EMPLOYERS
Last Ten Fiscal Years
Top 10 employers
All employers
City of Auburn: 2021 Annual Comprehensive Financial Report Statistical Section
174
Department 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Mayor 7 7 3 3 3 3 3 3 4 5
Administration (1)0 0 8 8 10 11 12 8 7 5
Human Resources 8 8 8 8 9 8 8 8 9 8
Finance 22 23 23 22 22 22 22 24 24 25
Legal 13 13 14 14 14 15 15 16 16 21
Community Development 28 29 25 26 26 26 25 32 31 32
Police 122 125 126 129 131 138 140 140 140 140
Public Works 43 48 49 50 53 54 55 55 55 55
Parks, Arts and Recreation (2)36 36 45 45 47 47 47 49 48 48
Street 19 19 19 19 19 20 20 21 21 21
Water 22 22 24 23 23 23 23 23 23 23
Sewer 11 10 10 10 10 10 10 10 10 10
Storm Drainage 10 10 10 10 10 10 12 12 12 12
Solid Waste 2 2 2 2 2 2 2 0 0 0
Airport (3)0 0 0 0 0 0 3 3 3 3
Cemetery 7 5 5 5 6 6 6 6 6 6
Golf Course (2)8 8 0 0 0 0 0 0 0 0
Facilities 9 9 9 10 10 10 10 11 11 11
Multimedia (4)0 0 4 4 4 4 4 4 4 4
Innovation & Technology 18 18 15 16 16 17 17 18 18 18
Equipment Rental 7 10 12 12 12 12 12 12 12 13
TOTAL 391 402 411 416 427 438 446 454 453 460
Source: City of Auburn Finance Department
(1)
(2)
(3)In 2018, 3.0 FTEs were added to the Airport and the Airport is now managed in-house.
(4)
City of Auburn, Washington
SCHEDULE 19
STAFFING LEVELS BY DEPARTMENT
Last Ten Fiscal Years
The Administration Department was created in 2014. These FTEs were reorganized from several existing departments such
as the Mayors Department, Public Works and Community Development. This department primarily consists of Emergency
Management, Economic Development and Public Affairs.
In 2014 the Golf Course Fund was reclassified from an Enterprise Fund and is now included in the General Fund. This
change moved 8 FTEs from the Golf Course Fund to the Parks, Arts and Recreation Department.
In 2014 the Multimedia Division was reorganized from the Innovation & Technology Fund into its' own Internal Service
Fund. The 3.6 FTEs report to the Director of Administration. In 2021, the Multimedia Assistant position was increased
from 0.6 FTE to 0.75 FTE.
City of Auburn: 2021 Annual Comprehensive Financial Report Statistical Section
175
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Planning*
Commercial permits 305 394 389 386 410 320 322 338 270 278
Commercial construction value ($1,000's)69,246$ 138,248$ 60,732$ 66,223$ 151,220$ 74,840$ 72,623$ 157,026$ 93,920$ 101,169$
Residential permits 665 576 463 340 426 345 210 195 202 232
Residential construction value ($1,000's)100,050$ 97,151$ 84,539$ 63,370$ 73,679$ 52,750$ 25,790$ 18,832$ 32,630$ 37,018$
Police
Crimes:
Arson 27 14 32 - - 19 20 22 19 16
Aggravated Assault 110 145 156 186 179 198 158 171 208 184
Burglary 983 651 810 851 727 722 615 547 587 611
DUI 171 138 126 188 158 194 223 180 186 159
Homicide 6 5 1 8 6 3 1 5 6 5
Narcotics 383 279 458 511 458 742 912 797 770 231
Rape 23 26 31 31 36 49 42 45 32 47
Robbery 110 109 104 91 98 117 115 125 125 136
Theft 2,415 2,583 3,192 2,728 2,235 2,169 2,945 2,223 2,922 3,269
Theft - motor vehicle 588 678 630 996 756 692 637 580 697 902
Traffic:
Non-criminal 4,922 5,378 6,520 5,489 5,926 5,074 5,573 4,372 3,421 3,411
Parking 1,946 2,052 5,238 3,737 3,822 3,777 3,477 4,425 2,990 3,013
Parks and Recreation
Athletic teams 388 382 358 321 328 306 312 315 15 158
Recreation activities 3,833 3,568 3,557 3,511 2,435 3,389 3,498 3,520 1,169 1,828
Golf course rounds 45,704 47,480 47,697 52,718 48,803 47,001 50,720 51,860 51,684 61,771
Senior center visits 40,704 36,991 40,715 38,485 36,636 35,454 32,464 77,378 35,417 35,133
Cultural activities 146 180 202 204 203 214 211 229 86 163
Museum audience served 15,397 14,163 13,968 13,535 14,380 13,570 15,153 14,638 3,463 6,441
Cemetery placements 259 226 250 237 281 264 263 253 273 353
Sources: Various city departments
* Includes the following permit types: Building, addition, tenant improvements, alterations and sign permits.
City of Auburn, Washington
SCHEDULE 20
OPERATING INDICATORS BY DEPARTMENT
Last Ten Fiscal Years
City of Auburn: 2021 Annual Comprehensive Financial Report Statistical Section
176
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
General City
Total area (square miles)30 30 30 30 30 30 30 30 30 30
Public Works
Miles of streets 249 245 244 254 238 238 247 248 245 247
Number of streetlights (1)6,101 6,110 6,211 6,362 6,552 6,581 6,738 3,429 3,526 3,589
Number of traffic signals 93 94 94 95 95 95 95 94 95 96
Utilities
Number of services 13,863 14,106 14,573 14,787 14,872 14,746 14,769 14,781 14,909 15,021
Miles of water lines (1)314 315 316 320 321 323 347 283 287 288
Miles of sanitary sewer lines (1)219 220 220 223 224 225 227 206 209 209
Miles of storm lines (1)252 263 282 294 319 337 362 234 240 244
Number of fire hydrants (1)3,308 3,329 3,559 3,580 3,577 3,595 3,664 3,014 3,115 3,132
Public Safety
Number of police stations 2 2 2 2 3 3 3 3 4 4
Parks and Recreation
Total park acreage (2)630 635 972 977 988.7 986 986 986 986 986
Number of softball/baseball fields 17 17 18 18 18 18 18 18 18 18
Number of soccer/football fields 3 4 4 4 4 4 4 4 4 4
Number of playgrounds 35 36 28 31 31 30 30 30 30 30
Sources: Various city departments
(1) This statistic has declined because it now represents City owned asset only effective in 2019.
City of Auburn, Washington
SCHEDULE 21
CAPITAL ASSET INDICATORS BY DEPARTMENT
Last Ten Fiscal Years
(2) The increase in total park acreage since 2013 is due to property inventory update in anticipation of the Parks Recreation & Open Space
Plan update and additional park categories are now being reported.
City of Auburn: 2021 Annual Comprehensive Financial Report Statistical Section
177
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Water Customers by Class
Single Family Residential 11,224 11,476 11,822 11,973 12,054 12,010 12,010 12,028 12,078 12,132
Multifamily 989 986 1,000 1,003 1,002 1,009 1,012 1,010 1,023 1,027
Commercial 1,098 1,094 1,146 1,190 1,186 1,158 1,159 1,163 1,168 1,170
Mfr./Industrial 37 37 38 38 37 2 2 2 2 2
Schools 36 37 37 37 38 37 37 37 37 37
City Accounts 26 28 30 30 31 31 30 30 31 31
Irrigation 446 441 493 509 517 492 512 505 564 616
Total Retail Water Customers 13,856 14,099 14,566 14,780 14,865 14,739 14,762 14,775 14,903 15,015
Wholesale Water Customers 8 7 7 7 7 7 7 7 6 6
Sewer Customers by Class
Single Family Residential 11,522 11,982 12,631 12,890 13,091 13,124 13,176 13,234 13,319 13,368
Non-single Family Residential 2,653 2,659 2,713 2,728 2,725 2,724 2,728 2,731 2,749 2,758
Total Sewer Customers 14,175 14,641 15,344 15,618 15,816 15,848 15,904 15,965 16,068 16,126
Storm Customers by Class
Single Family Residential 15,168 15,618 16,013 16,222 16,200 16,566 16,610 16,665 16,723 16,820
Non-single Family Residential 1,661 1,640 1,670 1,679 1,913 1,671 1,691 1,696 1,702 1,753
Total Storm Customers 16,829 17,258 17,683 17,901 18,113 18,237 18,301 18,361 18,425 18,573
Sources: City of Auburn - Utility Billing
City of Auburn, Washington
SCHEDULE 22
NUMBER OF UTILITY CUSTOMERS BY CUSTOMER CLASS
Last Ten Fiscal Years
City of Auburn: 2021 Annual Comprehensive Financial Report Statistical Section
178