HomeMy WebLinkAboutQ1 2022 Financial ReportAGENDA BILL APPROVAL FORM
Agenda Subject:
1st Quarter 2022 Financial Report
Date:
June 22, 2022
Department:
Finance
Attachments:
Financial Report Through March 2022
Monthly Sales Tax Report
Budget Impact:
Current Budget: $0
Proposed Revision: $0
Revised Budget: $0
Administrative Recommendation:
For information only.
Background for Motion:
Background Summary:
The financial report summarizes the general state of the Citywide financial position as of
March 31, 2022 and highlights significant trends the Council should be aware of. The
attachment provides the year-to-date status report and sales tax data for revenue collections
through March 31, 2022.
Reviewed by Council Committees:
Councilmember:Baggett Staff:Thomas
Meeting Date:June 27, 2022 Item Number:
Quarterly Financial Report Through March 2022
General Fund Summary
Quarterly Financial Report Through March 2022 2
General Fund 2021
Summary of Sources and Uses Annual YTD YTD YTD
Budget Budget Actual Actual Amount
Operating Revenues
Property Tax 6 23,198,400$ 1,045,200$ 1,153,604$ 1,230,328$ 108,404$ 10.4 %
Retail Sales Tax 3, 6-7 20,294,400 4,916,700 5,673,725 5,100,201 757,025 15.4 %
Affordable Housing Sales Tax Credit 129,900 32,475 47,274 44,057 14,799 45.6 %
Sales Tax - Pierce County Parks 101,700 25,200 32,427 30,670 7,227 28.7 %
Criminal Justice Sales Tax 2,135,000 553,200 721,192 599,073 167,992 30.4 %
Brokered Natural Gas Tax 131,300 43,100 51,479 48,102 8,379 19.4 %
City Utilities Tax 3, 8-9 6,779,000 1,185,900 1,633,844 962,837 447,944 37.8 %
Business & Occupation Tax 500,000 - - - - N/A
Admissions Tax 9-10 400,000 109,600 59,520 9,603 (50,080)(45.7)%
Electric Tax 8-9 3,760,400 940,100 999,584 921,206 59,484 6.3 %
Natural Gas Tax 8-9 1,122,500 290,400 296,575 268,331 6,175 2.1 %
Cable Franchise Fee 850,600 212,650 232,704 232,850 20,054 9.4 %
Cable Utility Tax 969,600 242,400 245,342 245,716 2,942 1.2 %
Cable Franchise Fee - Capital 60,000 15,000 13,509 15,826 (1,491)(9.9)%
Telephone Tax 8-9 704,200 164,000 146,263 209,034 (17,737)(10.8)%
Solid Waste Tax (external)8-9 - - 8,948 53,002 8,948 N/A
Leasehold Excise Tax 210,000 12,500 12,823 13,660 323 2.6 %
Gambling Excise Tax 10 342,100 87,069 48,423 399 (38,646) (44.4)%
Taxes sub-total 61,689,100$ 9,875,494$ 11,377,235$ 9,984,894$ 1,501,741$ 15.2 %
Business License Fees 11 393,100$ 114,100$ 80,118$ 103,954$ (33,982)$ (29.8)%
Building Permits 12 1,000,900 123,000 297,012 350,997 174,012 141.5 %
Other Licenses & Permits 870,300 142,500 282,915 401,548 140,415 98.5 %
Intergovernmental (Grants, etc.)4, 13 6,063,420 1,003,862 1,401,699 703,939 397,837 39.6 %
Charges for Services:14-15
General Government Services 14 3,646,350 911,588 875,399 828,576 (36,189)(4.0)%
Public Safety 14 988,200 247,050 268,255 143,391 21,205 8.6 %
Development Services Fees 14-15 1,041,900 302,100 374,593 392,607 72,493 24.0 %
Culture and Recreation 15 2,375,680 455,091 584,763 356,994 129,672 28.5 %
Fines and Penalties 16-17 731,400 225,250 96,314 199,338 (128,936) (57.2)%
Fees/Charges/Fines sub-total 17,111,250$ 3,524,540$ 4,261,068$ 3,481,344$ 736,528$ 20.9 %
Interest and Investment Earnings 17-18 91,200$ 22,800$ 89,509$ 10,712$ 66,709$ 292.6 %
Rents and Leases 17-18 1,003,000 256,900 303,178 110,230 46,278 18.0 %
Contributions and Donations 17-18 28,400 7,100 3,821 843 (3,279)(46.2)%
Other Miscellaneous 17-18 223,800 69,595 280,254 88,424 210,659 302.7 %
Transfers In 4,167,900 757,000 724,000 74,000 (33,000)(4.4)%
Insurance Recoveries - Capital & Operating 225,000 56,250 1,878 7,768 (54,372) (96.7)%
Other Revenues sub-total 5,739,300$ 1,169,645$ 1,402,640$ 291,976$ 232,995$ 19.9 %
Total Operating Revenues 84,539,650$ 14,569,679$ 17,040,943$ 13,758,215$ 2,471,264$ 17.0 %
Operating Expenditures
Council & Mayor 1,713,091$ 469,900$ 380,829$ 314,970$ 89,071$ 19.0 %
Administration 1,155,166 272,200 257,551 587,521 14,649 5.4 %
Human Resources 2,139,183 551,200 515,644 449,398 35,556 6.5 %
Municipal Court & Probation 3,163,945 270,536 183,634 172,322 86,902 32.1 %
Finance 4,226,313 1,114,000 843,831 587,521 270,169 24.3 %
City Attorney 5,498,018 1,146,800 962,960 702,635 183,840 16.0 %
Community Development 7,245,384 1,744,200 1,321,563 1,104,989 422,637 24.2 %
Community & Human Services (Comm Devel)1,411,128 176,300 151,250 141,255 25,050 14.2 %
Jail - SCORE 5,523,800 1,380,900 809,526 1,141,275 571,374 41.4 %
Police 34,178,050 8,399,900 8,311,313 7,607,135 88,587 1.1 %
Public Works 3,801,285 1,015,700 838,418 849,375 177,282 17.5 %
Parks, Arts & Recreation 15,366,550 3,605,800 3,062,746 2,465,946 543,054 15.1 %
Streets 4,034,054 931,400 841,017 854,824 90,383 9.7 %
Non-Departmental 3,731,720 727,655 575,675 548,680 151,980 20.9 %
Total Operating Expenditures 93,187,686$ 21,806,491$ 19,055,957$ 17,527,847$ 2,750,534$ 12.6 %
Page
Ref
2022 2022 YTD Budget vs. Actual
Favorable (Unfavorable)
Percentage
Quarterly Financial Report Through March 2022 3
Executive Summary
This report provides an overview of the City’s overall financial position for the fiscal period ending
March 31, 2022, reflecting financial data available as of May 31, 2022.
General Fund:
General Fund revenues have generally exceeded budget expectations and largely recovered
from the impact of the COVID-19 mitigation measures. During 2021, various restrictions were
implemented at the state and local level in terms of occupancy limits, vaccination requirements,
and mask mandates, all of which are thought to have either directly or indirectly affected the local
economy.
In late March of 2021, both King and Pierce counties advanced to Phase III of the state’s Healthy
Washington Roadmap to Recovery plan. Phase III allowed businesses to have indoor dining
occupancy up to 50%; retail, fitness and competitive sports at 50% occupancy; and indoor
entertainment venues were allowed to reopen with restrictions. At the end of June, Washington
state reopened under the Washington Ready plan. Industry sectors previously covered by the
Roadmap to Recovery or the Safe Start plan (with limited exceptions) were allowed to return to
usual capacity and operations. Throughout the third quarter of 2021, businesses were able to
resume normal operations, and some businesses continued to have modified hours and/or
capacity restrictions. Effective in October 2021, all restaurants in King County were to require
indoor dining patrons to show proof of vaccination. The indoor mask mandate also continued
throughout Q4-2021. In the state’s reopening plan, the state moved towards a county-based
system and away from the regional system. In this new plan, the assessment of counties will be
conducted on an individual basis.
Overall, General Fund revenues collected through Q1-2022 totaled $17.0 million as compared to
a year-to-date budget of $14.6 million, and were $2.4 million, or 17.0% above budget
expectations.
Notable variances to the 2022 budget include:
Retail Sales Tax: The sales tax report through Q1-2022 (which is provided as an
attachment to this report) reflects amounts remitted to the City of Auburn based on
sales from November 2021 through January 2022. Collections up to March 2022
totaled $5.7 million, an 11.2% increase from last year. The increase resulted from
multiple categories, particularly manufacturing. [pages 6-7]
In 2021, City Council increased the City utility tax rate from 7.0% to 10.0%. 1.0% of
utility tax revenue continues to support the Arterial Street Preservation Fund while this
change increased General Fund tax revenues for Water, Sewer, Storm and Solid Waste
services from the previous 6.0% to 9.0%. City utility tax revenues through Q1-2022 were
$505,000 favorable to budget and $671,000 higher than what was collected in Q1-2021.
[pages 8-9]
Building permit revenues collected through Q1-2022 totaled $297,000, which was
174,000 favorable to the year-to-date budget. A contributor to this variance was the
permitting of Divine Court, a 7-story multi-use building on Main Street. [page 12]
Quarterly Financial Report Through March 2022 4
Intergovernmental revenues collected in Q1-2022 totaled $1.4 million and were
$398,000 favorable to budget. A significant portion of this variance was due to the
unbudgeted receipt of $250,000 in Streamlined Sales Tax mitigation monies. Higher
than expected revenues for Muckleshoot Casino services also contributed to this
favorable variance. [page 13]
Culture and Recreation revenues collected in Q1-2022 totaled $585,000 and were
$130,000 higher than budget expectations. This variance was primarily due to higher
than anticipated revenues received for recreational classes following the easing or
removal of COVID-19 restrictions. [page 15]
General Fund expenditures through Q1-2022 totaled $19.1 million compared to a budget of $21.8
million, representing a $2.8 million favorable variance to budget. All departments operated within
their budgets in the first quarter of 2022.
Of this favorable variance to budget, over half is comprised of underspends in supplies and
professional services, while approximately 40% was due to underspends in personnel costs.
YTD Budget
$14.6 M
YTD Budget
$21.8 M
YTD Actuals
$17.0 M
YTD Actuals
$19.1 M
$0 $10 $20 $30 $40 $50 $60 $70 $80 $90 $100
Revenues
Expenditures
$ Millions
General Fund
Revenues vs. Expenditures Through March 2022
Quarterly Financial Report Through March 2022 5
Enterprise Funds:
The City’s enterprise funds account for operations with revenues primarily provided from user
fees, charges or contracts for services.
The Water Fund ended Q1-2022 with operating income of $856,400, which was approximately
$139,100 below the same period last year due to an increase in expenditures from Q1-2021. This
increase was driven by City interfund utility taxes, personnel, and interfund costs. [page 20]
The Sewer Fund had operating income of $417,000 versus $452,000 in the same period last
year. Increased consumption revenues were offset by higher expenditures, similar to the Water
Fund. [page 21]
Through March 2022 the Stormwater Fund had operating income of $756,000 compared to
$725,000 in the same period in 2021; the increase in revenues from charges for storm service
more than offset the increased expenditures due to higher interfund utility taxes. [page 21]
Internal Service Funds:
Internal service funds provide services to other City departments and include functions such as
Insurance, Worker’s Compensation, Facilities, Innovation & Technology, and Equipment Rental.
No significant variances were reported in these funds during Q1-2022. [page 21]
Quarterly Financial Report Through March 2022 6
General Fund
Revenues
The combined total of property, sales/use, utility, gambling, and admissions taxes provides over
70% of all resources supporting general governmental activities. The following section provides
additional information on these sources.
Property Tax collections in the first quarter totaled $1.2 million as compared to a year-to-date
budget of $1.0 million. As depicted in the graphic below, the majority of property taxes are
collected during the months of April and October, coinciding with the due dates for the County
property tax billings.
Retail Sales Tax collections through Q1-2022 totaled $5.7 million, representing taxes remitted to
the City of Auburn based on sales from November 2021 through January 2022. Despite the
COVID-19 pandemic, 2021 sales tax revenues were higher than the prior five years – and, in fact,
2021 sales tax collections were the highest on record for the City of Auburn. Sales tax revenues
in the first quarter of 2022 exceed those from the first quarter of 2021, with increases in most
categories, and in particular manufacturing. Sales tax on construction revenues are the notable
exception, which saw a 7.7% decrease from Q1-2021. Overall, retail sales tax revenues are up
$574,000 or 11.2% from the same period last year.
$0.0
$5.0
$10.0
$15.0
$20.0
$25.0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecMillionsProperty Taxes
2022 Budget
2022 YTD Actual
2021 Actual
Quarterly Financial Report Through March 2022 7
Note: The increase in sales tax revenue from 2018 to 2019 was primarily due to a policy change
whereby sales tax on construction revenue is retained in the General Fund; previously, a portion
was transferred to street funds. Of the year-over-year increase in sales tax revenue depicted in
the graphic above from 2018 to 2019, $2.2 million of the $2.9 million increase was due to this
policy change.
$0.0
$5.0
$10.0
$15.0
$20.0
$25.0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecMillionsRetail Sales & Use Tax
2022 Budget
2022 YTD Actual
2021 Actual
$14.9
$15.9
$18.8 $18.9
$21.6
$5.7
$0.0
$5.0
$10.0
$15.0
$20.0
$25.0
2017 2018 2019 2020 2021 2022
YTDMillionsRetail Sales & Use Tax
Actuals
Quarterly Financial Report Through March 2022 8
The following table breaks out the City’s retail sales taxes by major business sector.
Utility Taxes consist of interfund taxes on City utilities (Water, Sewer, Storm and Solid Waste)
and taxes on external utilities (Electric, Natural Gas, Telephone and Solid Waste). As noted on
page 3 of this report, Council increased the City utility tax rate from 7.0% to 10.0% effective in
2021. While 1.0% of this tax revenue continues to support the Arterial Street Preservation Fund,
this change increased General Fund tax revenue for Water, Sewer, Storm and Solid Waste
services from the previous 6.0% to 9.0%. Overall, City utility tax revenues collected through
March 2022 were $671,000 more than what was collected through March 2021.
2021 2022
Component Group YTD Actual YTD Actual Amount
Construction 750,470$ 692,664$ (57,806)$ (7.7)%
Manufacturing 91,899 345,395 253,496 275.8 %
Transportation & Warehousing 89,580 84,228 (5,352) (6.0)%
Wholesale Trade 328,040 321,255 (6,785) (2.1)%
Automotive 1,021,105 1,101,151 80,046 7.8 %
Retail Trade 1,625,691 1,739,428 113,737 7.0 %
Services 1,114,626 1,307,202 192,576 17.3 %
Miscellaneous 78,790 82,401 3,611 4.6 %
YTD Total 5,100,201$ 5,673,724$ 573,523$ 11.2 %
Comparison of Retail Sales Tax Collections by Group
Through March 2022
Change from 2021
Percentage
$0.0
$2.0
$4.0
$6.0
$8.0
$10.0
$12.0
$14.0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecMillionsUtility Tax
2022 Budget
2022 YTD Actual
2021 Actual
Quarterly Financial Report Through March 2022 9
The table below demonstrates the various utility tax revenues and show actual revenues
compared to budget.
An Admission Tax of 5.0% is placed on charges for general admission, season tickets, cover
charges, etc. Although admission tax revenues of $60,000 collected through March 2022 were
significantly higher than Q1-2021; this is due in part to COVID-19 restrictions, whereby some
entertainment businesses did not reopen until the second quarter of 2021. The primary remitter of
admission tax to the City of Auburn is the Auburn Regal Cinema at the Outlet Collection mall,
contributing roughly 75% of these revenues between 2018-2020. However, in both 2021 and
year-to-date in 2022, Regal Cinema’s contributions have dropped by half from their pre-pandemic
levels. As a result, admission tax revenues are unfavorable to budget.
2021 2022 2022
Utility Tax Type YTD Actual YTD Budget YTD Actual Amount Amount
City Interfund Utility Taxes 962,837$ 1,185,900$ 1,633,844$ $ 671,006 69.7 % $ 447,944 37.8 %
Electric 921,206 940,100 999,584 78,379 8.5 %59,484 6.3 %
Natural Gas 268,331 290,400 296,575 28,245 10.5 %6,175 2.1 %
Telephone 209,034 164,000 146,263 (62,771)(30.0)%(17,737)(10.8)%
Solid Waste (external)53,002 0 8,948 (44,053)(83.1)%8,948
YTD Total 2,414,409$ 2,580,400$ 3,085,214$ $ 670,805 27.8 % $ 504,814 19.6 %
Through March 2022
Utility Tax by Type
2022 vs. 2021 Actual 2022 vs. Budget
Percentage Percentage
$10.2 $10.2 $9.9
$11.4
$12.1
$3.1
$0.0
$2.0
$4.0
$6.0
$8.0
$10.0
$12.0
$14.0
2017 2018 2019 2020 2021 2022
YTDMillionsUtility Tax Revenues
Actuals
Quarterly Financial Report Through March 2022 10
Gambling Tax applies to all card games, punch board games, pull tabs, bingo games, raffles and
amusement games played within City limits. Due to COVID-19 occupancy limitations, some of
these establishments did not reopen for business until the latter part of Q1-2021 and many
opened at a reduced capacity. While capacity limitations were lifted at the end of Q2-2021, the
effects on these entertainment style activities continue to be evident due to reduced receipts
compared to normal levels.
$0
$100
$200
$300
$400
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecThousandsAdmission Tax
2022 Budget
2022 YTD Actual
2021 Actual
$0.0
$100.0
$200.0
$300.0
$400.0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecThousandsGambling Tax
2022 Budget
2022 YTD Actual
2021 Actual
Quarterly Financial Report Through March 2022 11
Licenses and Permits include business licenses, building permits, plumbing, electric and other
licenses and permit fees. Building permit fees and business licenses make up approximately 70%
of the annual budgeted revenue in this category.
The City charges an annual fee of $103 for a Business License for each business that is located
within the City. The City typically sends out the renewals for the following year around December
of each year. Therefore, the majority of these revenues are collected in December for the
following year or in January in the current year. Business license revenues collected through Q1-
2022 totaled $80,000, lower than the projected revenues of $114,000.
$0
$50
$100
$150
$200
$250
$300
$350
$400
$450
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecThousandsBusiness Licenses
2022 Budget
2022 YTD Actual
2021 Actual
$163
$353 $336 $354
$424
$80
$0
$100
$200
$300
$400
$500
2017 2018 2019 2020 2021 2022
YTDThousandsBusiness License Revenues
Actuals
Quarterly Financial Report Through March 2022 12
Building Permit revenues collected through March 2022 totaled $297,000. While this is
approximately $54,000 lower than 2021 collections year-to-date, revenues were $174,000
favorable to budget. Among the contributing factors for this favorable variance was the permitting
of a seven-story mixed-use building on Main Street known as Divine Court.
$0.0
$0.2
$0.4
$0.6
$0.8
$1.0
$1.2
$1.4
$1.6
1 2 3 4 5 6 7 8 9 10 11 12MillionsBuilding Permits
2022 Budget
2022 YTD Actual
2021 Actual
$1.2
$0.9
$1.2
$0.8
$1.3
$0.3
$0.0
$0.5
$1.0
$1.5
$2.0
$2.5
2017 2018 2019 2020 2021 2022
YTDMillionsBuilding Permits
Actuals
Quarterly Financial Report Through March 2022 13
Intergovernmental revenues include grants and stimulus monies (direct and indirect federal,
state and local), revenue from the Muckleshoot Indian Tribe (MIT) compact as well as state
shared revenues. Collections through Q1-2022 totaled $1.4 million and were $398,000 favorable
to budget expectations. Much of this favorable variance was due to the unbudgeted receipt of
$250,000 for Streamlined Sales Tax mitigation monies collected in March.
2021 2022 2022
Revenue YTD Actual YTD Budget YTD Actual Amount Amount
Federal Grants -$ -$ -$ $ - $ -
State Grants 31,680 94,000 - (31,680)(100.0)% (94,000)296.7 %
Interlocal Grants 3,000 33,700 9,000 6,000 200.0 % (24,700)(411.7)%
Muckleshoot Casino Services - 242,825 385,997 385,997 143,172 37.1 %
One-Time Allocation (SB 5092)- - - - -
State Shared Revenues:
Streamlined Sales Tax - - 250,040 250,040 250,040 100.0 %
Motor Vehicle Fuel Tax 243,260 219,100 276,418 33,158 13.6 %57,318 172.9 %
Criminal Justice - High Crime 58,871 54,100 68,320 9,449 16.1 %14,220 150.5 %
Criminal Justice - Population 6,519 6,500 7,332 814 12.5 %832 102.3 %
Criminal Justice - Special Prog.23,270 24,000 26,061 2,791 12.0 %2,061 73.8 %
Marijuana Excise Tax 41,004 46,825 55,748 14,744 36.0 %8,923 60.5 %
State DUI 3,217 3,000 3,682 465 14.5 %682 146.6 %
Fire Insurance Tax - - - - -
Liquor Excise 131,228 117,312 148,299 17,071 13.0 %30,987 181.5 %
Liquor Profit 161,890 162,500 170,802 8,912 5.5 %8,302 93.2 %
Total State Shared:669,258 633,337 1,006,702 337,443 50.4 % 373,365 110.6 %
YTD Total 703,939$ 1,003,862$ 1,401,699$ 697,760$ 99.1 %397,837$ 39.6 %
Through March 2022
Intergovernmental Revenues (Grants, Entitlements & Services)
2022 vs. 2021 Actual 2022 vs. Budget
% Change % Change
$6.1 $6.3 $6.0
$10.2
$6.3
$1.4
$0
$2
$4
$6
$8
$10
$12
2017 2018 2019 2020 2021 2022
YTDMillionsIntergovernmental Revenues
(Grants, Entitlements & Services)
Actuals
Quarterly Financial Report Through March 2022 14
Charges for Services consist of general governmental service charges, public safety charges,
development service fees, and culture and recreation fees. Total charges for services collected
through March 2022 totaled $2.1 million and was $187,000, or 9.8%, more than budgeted.
The General Government revenue category primarily includes the interfund assessment for the
salary and benefit costs for support departments (Finance, Human Resources and Legal). Salary
and benefit costs for these departments are charged to the respective General Fund home
department and a portion of those costs are recouped from other funds via interfund charges.
General Government revenues also include fees for passport services, reimbursement from cities
participating in the South King Housing and Homelessness Partners (SKHHP), as well as
transportation projects. The slight unfavorable variance to budget is due to the timing of SKHHP
revenues, which are received on a reimbursement basis.
Public safety revenues mostly consist of revenues for law enforcement services, which are extra
duty security services whereby police officers are contracted for and reimbursement is made by
the hiring agency. This category also includes reimbursements from the Muckleshoot Indian Tribe
(MIT) for a full-time dedicated police officer and associated expenditures as well as monies
collected from the Auburn School District for services rendered. Public safety revenues collected
in the first quarter of 2022 totaled $268,000 and were $21,000 favorable to budget primarily due
to stronger than anticipated requests for extra duty security services.
Development services fee collections consist primarily of plan check fees, facility extension
charges, and zoning and subdivision fees. Through Q1-2022, development service fees collected
totaled $375,000 and were $72,000 favorable to budget expectations. A major contributor to this
variance was FAC linear charges (fees assessed on projects that require extension of public
facilities): February revenues were about $50,000 higher than average monthly revenues in 2021.
2021 2022 2022
Revenue YTD Actual YTD Budget YTD Actual Amount Amount
General Government 828,576$ 911,588$ 875,399$ $ 46,823 5.7 % $ (36,189)(4.0)%
Public Safety 143,391 247,050 268,255 124,864 87.1 %21,205 8.6 %
Development Services 392,607 302,100 374,593 (18,014)(4.6)%72,493 24.0 %
Culture & Recreation 356,994 455,091 584,763 227,769 63.8 %129,672 28.5 %
YTD Total 1,721,568$ 1,915,828$ 2,103,010$ 381,442$ 22.2 % $ 187,182 9.8 %
Through March 2022
Charges for Services by Type
2022 vs. 2021 Actual 2022 vs. Budget
Percentage Percentage
Quarterly Financial Report Through March 2022 15
The majority of culture and recreation revenues are derived from greens fees and pro shop sales
at the Auburn Golf Course, recreational classes, ticket sales at the Auburn Avenue Theater,
senior programs, and special events. Overall, culture and recreation revenues exceeded budget
by $130,000, or 28.5%. Nearly 75% of year-to-date revenues have come from greens fees at the
Auburn Golf Course and recreation classes. While greens fee revenues have increased a modest
$11,000 or 5.9% from the same period last year due to price increases, recreation class revenues
have increased by $131,000 or 136.2%. This is primarily attributable to COVID-19 restrictions in
place during Q1-2021 that have since been eased or removed.
$0.9 $0.9
$1.1
$1.0
$1.6
$0.4
$0.0
$0.5
$1.0
$1.5
2017 2018 2019 2020 2021 2022
YTDMillionsDevelopment Service Fees
Actuals
$0.0
$0.5
$1.0
$1.5
$2.0
$2.5
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecMillionsCulture & Recreation
2022 Budget
2022 YTD Actual
2021 Actual
Quarterly Financial Report Through March 2022 16
Fines & Penalties include civil penalties (such as code compliance fines), parking and traffic
infraction penalties, criminal fines (including criminal traffic, criminal non-traffic and other criminal
offenses) as well as non-court fines such as false alarm fines. Total revenues collected through
March 2022 totaled $96,300 as compared to a budget of $225,300 and were 57.2% below budget
expectations primarily due to lower-than-budgeted collections in civil infraction penalties (typically
consisting of traffic infractions).
2021 2022 2022
Month YTD Actual YTD Budget YTD Actual Amount Amount
Civil Penalties 382$ 6,350$ 165$ $ (217)(56.8)% $ (6,185)(97.4)%
Civil Infraction Penalties 54,378 130,700 31,417 (22,961)(42.2)%(99,283)(76.0)%
Redflex Photo Enforcement 855 - 295 (560)(65.5)%295 N/A %
Parking Infractions 12,480 33,800 26,666 14,187 113.7 %(7,134)(21.1)%
Criminal Traffic Misdemeanor 12,999 14,200 9,195 (3,803)(29.3)%(5,005)(35.2)%
Criminal Non-Traffic Fines 7,904 10,500 11,887 3,982 50.4 %1,387 13.2 %
Criminal Costs 9,441 4,300 8,469 (973)(10.3)%4,169 96.9 %
Non-Court Fines & Penalties 21,700 25,400 8,221 (13,479)(62.1)%(17,179)(67.6)%
YTD Total 120,137$ 225,250$ 96,314$ $ (23,823)(19.8)% $ (128,936)(57.2)%
Through March 2022
Fines & Penalties by Type
2022 vs. 2021 Actual 2022 vs. Budget
Percentage Percentage
$0.0
$0.2
$0.4
$0.6
$0.8
$1.0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecMillionsFines & Penalties
2022 Budget
2022 YTD Actual
2021 Actual
Quarterly Financial Report Through March 2022 17
Miscellaneous Revenues consist of investment earnings, income from facility rentals, revenue
collected for golf cart rentals at the Auburn Golf Course, contributions and donations, and other
income including the quarterly purchasing card (P-card) rebate monies.
Revenues collected in the first quarter of 2022 in this category totaled $677,000 and were
$320,000 favorable to budget. The majority of the favorable variance to budget was in the other
miscellaneous revenue category, largely due to the sale of fixed assets with respect to a fire utility
easement. Also contributing to the favorable variance were higher than average pre-payments for
facility rentals.
$0.9 $0.9 $0.9
$0.6
$0.4
$0.2
$0.0
$0.2
$0.4
$0.6
$0.8
$1.0
$1.2
2017 2018 2019 2020 2021 2022
YTDMillionsFines & Penalties
Actuals
2021 2022 2022
Month YTD Actual YTD Budget YTD Actual Amount Amount
Interest & Investments 10,712$ 22,800$ 89,509$ 78,797$ 735.6 %66,709$ 292.6 %
Rents & Leases 110,230 256,900 303,178 192,948 175.0 %46,278 18.0 %
Contributions & Donations 843 7,100 3,821 2,978 353.3 %(3,279)(46.2)%
Other Miscellaneous Revenue 88,424 69,595 280,254 191,830 216.9 %210,659 302.7 %
YTD Total 210,208$ 356,395$ 676,761$ 466,553$ 221.9 %320,366$ 89.9 %
Miscellaneous Revenues by Type
Through March 2022
2022 vs. 2021 Actual 2022 vs. Budget
Percentage Percentage
Quarterly Financial Report Through March 2022 18
Real Estate Excise Tax (REET) revenues are taxes on the sale of both commercial properties
and single-family residences, and are receipted into the Capital Improvement Projects Fund and
used for governmental capital projects. REET revenues collected in the first quarter of 2022
totaled $1.4 million, which was $854,000 or 60.5% favorable to budget expectations. This strong
performance continues on the heels of 2021, which saw the highest REET revenue collections on
record for the City of Auburn. This increase from Q1-2022 is attributable to the continued growth
of the real estate market and increase of property values. A notable contributor to the large
favorable variance in March was the Logisticenter property in Auburn.
$1.5
$1.8 $1.8
$1.2
$1.5
$0.7
$0.0
$0.5
$1.0
$1.5
$2.0
2017 2018 2019 2020 2021 2022
YTDMillionsMiscellaneous Revenues
Actuals
Real Estate Excise Tax Revenues
Through March 2022
2021 2022 2022
Month YTD Actual YTD Budget YTD Actual Amount Amount
Jan 328,140 186,200$ 235,988 (92,152) (28.1) % 49,788 21.1 %
Feb 244,189 186,200 320,851 76,661 31.4 % 134,651 42.0 %
Mar 423,532 186,200 855,713 432,182 102.0 % 669,513 78.2 %
Apr 385,966 186,200
May 339,074 186,200
Jun 447,063 186,200
Jul 563,422 186,200
Aug 585,227 186,200
Sep 946,209 186,200
Oct 393,570 186,200
Nov 474,992 186,200
Dec 825,919 186,500
YTD Total 995,861 558,600 1,412,552 416,691 41.8% 853,952 60.5%
2022 vs. 2021 Actual 2022 vs. Budget
Percentage Percentage
Quarterly Financial Report Through March 2022 19
$0.0
$1.0
$2.0
$3.0
$4.0
$5.0
$6.0
$7.0
1 2 3 4 5 6 7 8 9 10 11 12MillionsReal Estate Excise Tax
2022 Budget
2022 YTD Actual
2021 Actual
$3.6 $3.9
$5.2
$4.2
$6.0
$1.4
$0.0
$1.0
$2.0
$3.0
$4.0
$5.0
$6.0
$7.0
2017 2018 2019 2020 2021 2022
YTDMillionsReal Estate Excise Tax Revenues
Actuals
Quarterly Financial Report Through March 2022 20
Utility Enterprise Funds
Utility activities are divided between operating funds and capital subfunds. Operating funds house
all the operating costs along with debt service and financing obligations. Capital funds show costs
associated with capital acquisition and construction. Both the operating and capital funds have a
working capital balance. This approach isolates those funds available for capital and cash flow
needs for daily operations, and project managers will know exactly how much working capital is
available for current and planned projects.
Through March 2022 the Water Utility had operating income of $856,400 (operating revenues
less operating expenditures), approximately $139,100 below the same period last year. Water
Fund operating revenues were $230,500 or 7.4% higher than Q1-2021; the majority of this
variance was due to stronger performance in water sales revenue, which was offset by lower
interest earnings. Operating expenditures increased by $369,600 mainly due to increased City
utility tax payments, higher personnel costs, and increased interfund service charges.
Billable water consumption through March 2022 totaled 593,500 hundred cubic feet (ccf), an
increase of 18,600 ccf (3.2%) over Q1-2021. The largest driver of this increase was commercial
consumption; with the exception of single family and manufacturing, all customer classes saw an
increase in consumption compared to last year.
There is also a trend of decreased year-over-year consumption on a per account basis due
largely to conservation efforts and appliance efficiency improvements, which are anticipated in
the Utilities Comprehensive Plan.
-
200
400
600
800
1,000
$0.0M
$0.5M
$1.0M
$1.5M
$2.0M
Thousands (ccf)Millions ($)2021 vs 2022
Water Revenues and Water Sold
Quarterly Financial Report Through March 2022 21
Through March 2022, the Sewer Utility finished with operating income of $417,000 as compared
to $452,000 through March 2021. Operating revenues were up $230,000 or 10.8% from the same
period last year due to stronger performance in charges for City sewer service. Operating
expenses were up $265,000 mainly due to increased City interfund utility tax payments, as well
as increased personnel and interfund service costs.
In the first quarter of 2022, the Stormwater Utility had operating income of $756,000 compared
with $725,000 in the same period last year. Operating revenues were up $122,000 compared to
Q1-2021 due to charges for City storm service. As most Stormwater Utility charges are based on
a flat rate, there are not typically significant fluctuations in this revenue.
Operating expenditures in the Stormwater Utility were up $91,000 compared to the first quarter of
last year. This increase was mainly due to higher interfund utility tax payments.
Internal Service Funds
Operating expenditures within the Insurance Fund represent the premium cost pool that will be
allocated monthly to other City funds over the course of the year. As a result, the expenditure
balance gradually diminishes each month throughout the year.
No significant variances are reported in the Workers’ Compensation, Facilities, Innovation &
Technology, or Equipment Rental Funds.
Contact Information
This report is prepared by the Finance Department. Additional financial information can also be
viewed at our website: http://www.auburnwa.gov/. For any questions about this report please
contact Jamie Thomas at jdthomas@auburnwa.gov.
SALES TAX SUMMARY
MARCH 2022 SALES TAX DISTRIBUTIONS (FOR JANUARY 2022 RETAIL ACTIVITY)
2021 Annual Total 2021 YTD 2022 YTD YTD 2021 Annual Total 2021 YTD 2022 YTD YTD
NAICS CONSTRUCTION (Nov '20-Oct '21)(Nov '20-Jan '21)(Nov '21-Jan '22)% Diff NAICS AUTOMOTIVE (Nov '20-Oct '21)(Nov '20-Jan '21)(Nov '21-Jan '22)% Diff
236 Construction of Buildings 1,822,597 471,532 382,360 -18.9%441 Motor Vehicle and Parts Dealer 4,296,210 962,411 1,043,728 8.4%
237 Heavy and Civil Construction 204,312 55,506 44,122 -20.5%447 Gasoline Stations 259,015 58,693 57,423 -2.2%
238 Specialty Trade Contractors 1,007,202 223,432 266,182 19.1%TOTAL AUTOMOTIVE 4,555,224$ 1,021,105$ 1,101,151$ 7.8%
TOTAL CONSTRUCTION 3,034,111$ 750,470$ 692,664$ -7.7%Overall Change from Previous Year 80,046$
Overall Change from Previous Year (57,806)$
2021 Annual Total 2021 YTD 2022 YTD YTD
2021 Annual Total 2021 YTD 2022 YTD YTD NAICS RETAIL TRADE (Nov '20-Oct '21)(Nov '20-Jan '21)(Nov '21-Jan '22)% Diff
NAICS MANUFACTURING (Nov '20-Oct '21)(Nov '20-Jan '21)(Nov '21-Jan '22)% Diff 442 Furniture and Home Furnishings 290,161 81,415 65,067 -20.1%
311 Food Manufacturing 10,030 2,318 3,047 31.4%443 Electronics and Appliances 343,833 86,317 101,264 17.3%
312 Beverage and Tobacco Products 14,270 3,139 3,730 18.8%444 Building Material and Garden 802,678 172,629 172,258 -0.2%
313 Textile Mills 728 271 244 -10.1%445 Food and Beverage Stores 487,109 113,171 133,589 18.0%
314 Textile Product Mills 2,905 936 813 -13.2%446 Health and Personal Care Store 391,338 96,177 105,412 9.6%
315 Apparel Manufacturing 1,759 533 391 -26.5%448 Clothing and Accessories 1,122,519 281,111 315,739 12.3%
316 Leather and Allied Products 612 94 165 74.7%451 Sporting Goods, Hobby, Books 334,027 82,817 87,319 5.4%
321 Wood Product Manufacturing 21,166 3,076 6,810 121.4%452 General Merchandise Stores 916,949 263,097 251,787 -4.3%
322 Paper Manufacturing 5,379 706 1,117 58.3%453 Miscellaneous Store Retailers 1,493,818 361,966 431,205 19.1%
323 Printing and Related Support 53,224 10,087 22,048 118.6%454 Nonstore Retailers 279,532 86,991 75,788 -12.9%
324 Petroleum and Coal Products 15 3 0 -100.0%TOTAL RETAIL TRADE 6,461,966$ 1,625,691$ 1,739,428$ 7.0%
325 Chemical Manufacturing 14,340 1,849 2,062 11.6%Overall Change from Previous Year 113,738$
326 Plastics and Rubber Products 7,555 2,168 1,417 -34.7%
327 Nonmetallic Mineral Products 18,959 3,911 3,273 -16.3%
331 Primary Metal Manufacturing 8,894 7,144 399 -94.4%2021 Annual Total 2021 YTD 2022 YTD YTD
332 Fabricated Metal Product Manuf 38,660 6,497 14,317 120.4%NAICS SERVICES (Nov '20-Oct '21)(Nov '20-Jan '21)(Nov '21-Jan '22)% Diff
333 Machinery Manufacturing 17,222 4,416 5,459 23.6%51*Information 759,640 193,953 217,553 12.2%
334 Computer and Electronic Product 15,944 1,806 10,302 470.4%52*Finance and Insurance 157,662 41,765 39,223 -6.1%
335 Electric Equipment, Appliances 1,074 266 1,431 438.9%53*Real Estate, Rental, Leasing 448,984 98,651 114,746 16.3%
336 Transportation Equipment Man 219,977 30,078 251,735 c 737.0%541 Professional, Scientific, Tech 481,644 a 109,262 142,602 30.5%
337 Furniture and Related Products 14,021 3,563 4,107 15.3%551 Company Management 48 13 60 372.1%
339 Miscellaneous Manufacturing 34,746 9,037 12,527 38.6%56*Admin. Supp., Remed Svcs 792,428 200,181 195,571 -2.3%
TOTAL MANUFACTURING 501,480$ 91,899$ 345,395$ 275.8%611 Educational Services 44,374 9,041 13,774 52.4%
Overall Change from Previous Year 253,496$ 62*Health Care Social Assistance 99,456 26,994 43,815 62.3%
71*Arts and Entertainment 74,095 8,232 16,392 99.1%
72*Accommodation and Food Svcs 1,429,205 282,510 342,743 21.3%
2021 Annual Total 2021 YTD 2022 YTD YTD 81*Other Services 632,779 143,718 179,992 d 25.2%
NAICS TRANSPORTATION AND WAREHOUSING (Nov '20-Oct '21)(Nov '20-Jan '21)(Nov '21-Jan '22)% Diff 92*Public Administration 3,918 309 733 137.4%
481 Air Transportation 0 0 0 N/A TOTAL SERVICES 4,924,232$ 1,114,626$ 1,307,202$ 17.3%
482 Rail Transportation 21,189 5,093 7,857 54.3%Overall Change from Previous Year 192,576$
483 Water Transportation 0 0 0 N/A
484 Truck Transportation 30,906 6,241 6,527 4.6%
485 Transit and Ground Passengers 2 0 106 N/A 2021 Annual Total 2021 YTD 2022 YTD YTD
488 Transportation Support 46,167 11,250 13,353 18.7%NAICS MISCELLANEOUS (Nov '20-Oct '21)(Nov '20-Jan '21)(Nov '21-Jan '22)% Diff
491 Postal Service 736 237 250 5.5%000 Unknown 0 0 0 N/A
492 Couriers and Messengers 265,381 63,608 53,761 -15.5%111-115 Agriculture, Forestry, Fishing 7,443 3,609 3,585 -0.7%
493 Warehousing and Storage 8,727 3,151 2,374 -24.7%211-221 Mining & Utilities 37,007 8,885 5,380 -39.4%
TOTAL TRANSPORTATION 373,108$ 89,580$ 84,228$ -6.0%999 Unclassifiable Establishments 365,056 66,297 73,437 10.8%
Overall Change from Previous Year (5,352)$ TOTAL SERVICES 409,506$ 78,790$ 82,401$ 4.6%
Overall Change from Previous Year 3,611$
2021 Annual Total 2021 YTD 2022 YTD YTD
NAICS WHOLESALE TRADE (Nov '20-Oct '21)(Nov '20-Jan '21)(Nov '21-Jan '22)% Diff GRAND TOTAL 21,683,222$ 5,100,201$ 5,673,725$
423 Wholesale Trade, Durable Goods 1,066,703 255,838 239,152 b -6.5%Overall Change from Previous Year 573,525$ 11.2%
424 Wholesale Trade, Nondurable 337,782 67,233 76,122 13.2%
425 Wholesale Electronic Markets 19,109 4,970 5,980 20.3%Total March 2022 Sales Tax Distributions 1,660,763$
TOTAL WHOLESALE 1,423,595$ 328,040$ 321,255$ -2.1%Dollar Change from 1 year ago 92,822$
(6,785)$ Percent Change from March 2021 5.9%
Comparisons:
March 2021 1,567,941$
Includes Adjustments in excess of +/- $10,000.March 2020 1,416,529$
a. WA State Department of Revenue adjustment to sales tax returns for July 2021 Reporting (adjustment: $42,412).
b. WA State Department of Revenue adjustment to sales tax returns for January 2022 Reporting (adjustment: -$23,324).
c. WA State Department of Revenue adjustment to sales tax returns for January 2022 Reporting (adjustment: $223,728).
d. WA State Department of Revenue adjustment to sales tax returns for February 2022 Reporting (adjustment: $15,861).
03/29/22