HomeMy WebLinkAboutQ4 2022 Financial ReportAGENDA BILL APPROVAL FORM
Agenda Subject:
4th Quarter 2022 Financial Report Update
Date:
January 19, 2023
Department:
Finance
Attachments:
Financial Report through Dec 2022- Working
Capital
Budget Impact:
Administrative Recommendation:
For discussion only.
Background for Motion:
Background Summary:
The financial report summarizes the general state of Citywide financial affairs and highlights
significant items or trends that the City Council should be aware of. The attachment provides
year-to-date financial activity through December 31, 2022, based on financial data available
as of March 2, 2023. A report detailing the working capital balance for enterprise funds
covering the same period is also attached.
Reviewed by Council Committees:
Councilmember:Baldwin Staff:Thomas
Meeting Date:March 13, 2023 Item Number:
Quarterly Financial Report Through December 2022 1
This report provides an overview of the City’s overall financial position for the fiscal period ending
December 31, 2022, reflecting financial data available as of February 8, 2023.
GENERAL FUND OVERVIEW
General Fund revenues have generally exceeded budget expectations and largely recovered from
the impact of the COVID-19 mitigation measures. During 2021, the City saw the easement of mask
mandates and COVID-19 restrictions being lifted following the state’s Healthy Washington
Roadmap to Recovery plan. Simultaneous to reduced COVID-19 related restrictions, the local
economy saw a surge in demand and limited supply for goods and housing due to several local,
national, and international economic factors. These factors actually created a favorable financial
position for the City’s General Fund through the end of 2021.
Many of the favorable economic impacts of 2021 continued through 2022 and the City had an
overall favorable year. However, year-over-year increases have slowed from the unprecedent
increases seen in 2021. A perfect example of this is seen with the City’s Sales and Retail Tax which
outperformed 2021 collections by 4.5% (compared to the 14.6% annual increase 2020 to 2021).
New in 2022, the City implemented a Business and Occupation (B&O) tax, wherein the City taxes
businesses based on the value of gross receipts or square footage of occupied warehousing space,
subject to certain constraints. This new B&O tax generated $3.0 million in revenue in 2022.
Overall, General Fund revenues collected through Q4-2022 totaled $90.7 million as compared to
an annual budget of $86.9 million, and were $3.8 million, or 4.4% above budget expectations.
General Fund expenditures through Q4-2022 totaled $102.0 million compared to the total budget
authority of $113.8 million, a 10.4% underspend.
Quarterly Financial Report Through December 2022 2
Revenue: The following factors had the most significant impacts on the budget vs. actual revenue
collected:
•Retail Sales Tax: Collections through December 2022 totaled $22.7 million, and
exceeded the annual budget by $2.4 million (11.7%). The increase resulted from
multiple categories, particularly in the services and manufacturing. [pages 5-7]
•Utility Tax: Revenue collected through Q4-2022 were $687,500 unfavorable to budget
and they were $437,000 lower than what was collected in 2021. This variance is
primarily due to a change in how the interfund utility taxes are transferred between the
City’s General Fund and the City’s pass-through King County Metro Sewer subfund.
[pages 7-9]
•Intergovernmental revenue: 2022 collections totaled $6.9 million and were $574,000
unfavorable to budget. This is due to the timing for reimbursements on some State and
Interlocal grants.. [pages 12-13]
•Fines and Penalties: Total revenue collected in this category underperformed budget by
$495,000 (56%). Fines and Fees are almost entirely related to the civil and criminal
penalties imposed and collected by defendants through the municipal court, which is
currently operated by King County Courts. [pages 15]
Expenditures: All departments operated within their budgets in 2022. Of this favorable variance to
budget, $6.9 million was due to underspends in services and charges for projects and programs
that did not reach completion. The single largest contributor to the underspend was $4.8 million in
unspent salaries related to staff vacancies related to attrition.
STREET FUNDS OVERVIEW
The City’s three street funds are special revenue funds wherein the revenue sources and
expenditures are legally restricted. These funds are used for street capital construction projects,
as well as local and arterial street repair and preservation projects. Historically, the majority of
expenditures in all three street funds occur during the second half of the year when weather
conditions are optimal for pavement construction. Variances in budget and actuals between years
are generally due to the schedule and level of activity on projects in the fund, and the timing of
grant reimbursements and other funding.
In 2022, Arterial Street Fund revenues totaled $3.1 million as compared to revenues of $2.5
million in 2021, while expenditures totaled $4.4 million as compared to expenditures of $3.7 million
in 2021. [pages 19-20]
Local Street Fund revenues of $1.8 million compared to revenues of $1.5 million in 2021.
Expenditures in 2022 were $2.1 million as compared with $1.5 million in 2021. [pages 20-21]
Lastly, Arterial Street Preservation Fund revenues totaled $4.2 million in 2022 compared to $3.5
million in 2021. Expenditures totaled $4.2 million compared to $3.9 million through last year. [pages
20-21]
Quarterly Financial Report Through December 2022 3
ENTERPRISE FUNDS OVERVIEW
The City’s enterprise funds account for operations with revenues primarily provided from user fees,
charges or contracts for services.
The Water Fund ended 2022 with operating income of $5.5 million, approximately $577,000 above
the same period last year due to decreased expenditures. [page 23-24]
The Sewer Fund had operating income of $3.4 million in 2022 versus $1.1 million last year.
Increased in interest earnings and lower interfund utility tax costs resulting in an increase in
operating income from 2021. [page 24]
Through December 2022, the Stormwater Fund had operating income of $2.7 million compared
to $2.3 million in 2021; this variance is largely due to increased interest earnings and increase in
charges for service. [page 24]
The Solid Waste Fund had an operating loss of $1.1 million in 2022 compared to a loss of $2.4
million in 2021; higher service revenues & interest earnings were offset by increased payments to
the City’s primary solid waste vendor. [pages 24-25]
The Airport Fund had operating income of $358,000 through December 2022, compared to
$339,000 last year. Higher supplies cost was offset by higher charges for service revenues. [page
25]
The Cemetery Fund had operating income of $71,000 in 2022, compared with operating income
of $597,000 last year. This decrease in largely attributable to decreased sales revenues and
increased costs of supplies for resale. [page 25]
INTERNAL SERVICE FUNDS OVERVIEW
Internal service funds provide services to other City departments and include functions such as
Insurance, Worker’s Compensation, Facilities, Innovation & Technology, and Equipment Rental.
No significant variances were reported in these funds in 2022. [page 25]
Quarterly Financial Report Through December 2022 4
GENERAL FUND DETAILS
The following chart is a detailed breakdown of the General Fund’s different sources of revenue and
expenditures, broken down by department:
2021
Annual YE YE YE
GENERAL FUND Budget Budget Actual Actual Amount
Operating Revenues
Property Tax 23,198,400$ 23,198,400$ 24,293,611$ 23,234,591$ 1,095,211$ 4.7 %
Retail Sales Tax 20,294,400 20,294,400 22,661,066 21,683,222 2,366,666 11.7 %
Affordable Housing Sales Tax Credit 129,900 129,900 152,865 155,794 22,965 17.7 %
Sales Tax - Pierce County Parks 101,700 101,700 135,694 129,875 33,994 33.4 %
Criminal Justice Sales Tax 2,135,000 2,135,000 3,031,055 2,614,952 896,055 42.0 %
Brokered Natural Gas Tax 131,300 131,300 219,151 151,567 87,851 66.9 %
City Utilities Tax 6,779,000 6,779,000 5,597,438 6,372,408 (1,181,562)(17.4)%
Business & Occupation Tax 500,000 500,000 3,032,830 - 2,532,830 506.6 %
Admissions Tax 400,000 400,000 154,463 169,752 (245,537)(61.4)%
Electric Tax 3,760,400 3,760,400 4,045,920 3,790,297 285,520 7.6 %
Natural Gas Tax 1,122,500 1,122,500 1,243,873 1,082,748 121,373 10.8 %
Cable Franchise Fee 850,600 850,600 456,739 912,416 (393,861)(46.3)%
Cable Utility Tax 969,600 969,600 1,050,577 962,553 80,977 8.4 %
Cable Franchise Fee - Capital 60,000 60,000 57,254 57,105 (2,746)(4.6)%
Telephone Tax 704,200 704,200 574,500 679,925 (129,700)(18.4)%
Solid Waste Tax (external)- - 66,999 196,733 66,999 N/A
Leasehold Excise Tax 210,000 210,000 243,472 222,050 33,472 15.9 %
Gambling Excise Tax 342,100 342,100 256,683 124,965 (85,417) (25.0)%
Taxes sub-total 61,689,100$ 61,689,100$ 67,274,192$ 62,540,952$ 5,585,092$ 9.1 %
Business License Fees 393,100$ 393,100$ 326,223$ 424,315$ (66,877)$ (17.0)%
Building Permits 1,000,900 1,000,900 1,001,265 1,293,979 365 0.0 %
Other Licenses & Permits 870,300 870,300 947,992 1,218,809 77,692 8.9 %
Intergovernmental (Grants, etc.)7,480,195 7,480,195 6,906,122 6,308,142 (574,073)(7.7)%
Charges for Services:
General Government Services 3,653,540 3,653,540 3,501,518 3,329,054 (152,022)(4.2)%
Public Safety 988,200 988,200 864,972 1,270,737 (123,228)(12.5)%
Development Services Fees 1,041,900 1,041,900 1,331,856 1,626,502 289,956 27.8 %
Culture and Recreation 2,375,680 2,375,680 2,702,879 2,339,300 327,199 13.8 %
Fines and Penalties 885,400 885,400 390,200 434,042 (495,200) (55.9)%
Fees/Charges/Fines sub-total 18,689,215$ 18,689,215$ 17,973,026$ 18,244,880$ (716,189)$ (3.8)%
Interest and Investment Earnings 91,200$ 91,200$ 657,437$ 95,542$ 566,237$ 620.9 %
Rents and Leases 1,003,000 1,003,000 1,139,940 1,127,408 136,940 13.7 %
Contributions and Donations 28,400 28,400 24,533 31,182 (3,867)(13.6)%
Other Miscellaneous 223,800 223,800 529,975 241,751 306,175 136.8 %
Transfers In 4,983,661 4,983,661 3,033,653 1,538,372 (1,950,008)(39.1)%
Insurance Recoveries - Capital & Operating 225,000 225,000 103,473 187,185 (121,527) (54.0)%
Other Revenues sub-total 6,555,061$ 6,555,061$ 5,489,010$ 3,221,442$ (1,066,050)$ (16.3)%
Total Operating Revenues 86,933,376$ 86,933,376$ 90,736,229$ 84,007,273$ 3,802,853$ 4.4 %
Operating Expenditures
Council & Mayor 1,713,091$ 1,713,091$ 1,494,416$ 1,130,366$ 218,675$ 12.8 %
Administration 1,170,381 1,170,381 1,106,061 1,195,017 64,320 5.5 %
Human Resources 2,244,183 2,244,183 2,068,191 1,745,216 175,992 7.8 %
Municipal Court & Probation 3,163,945 3,163,945 2,314,646 2,473,775 849,299 26.8 %
Finance 4,226,313 4,226,313 3,727,235 3,342,944 499,078 11.8 %
City Attorney 6,243,018 6,243,018 4,547,810 3,959,192 1,695,208 27.2 %
Community Development 7,657,912 7,657,912 5,903,213 4,970,932 1,754,698 22.9 %
Community & Human Services (Comm Devel)1,411,128 1,411,128 1,177,273 1,188,683 233,855 16.6 %
Jail - SCORE 5,523,800 5,523,800 5,592,261 5,583,799 (68,461)(1.2)%
Police 34,601,650 34,601,650 31,577,235 29,535,230 3,024,415 8.7 %
Public Works 3,945,285 3,945,285 3,653,173 3,450,243 292,112 7.4 %
Parks, Arts & Recreation 15,388,110 15,388,110 14,114,895 12,050,998 1,273,215 8.3 %
Streets 4,034,054 4,034,054 3,715,658 3,786,304 318,396 7.9 %
Non-Departmental 22,497,099 22,497,099 20,962,143 6,449,917 1,534,956 6.8 %
Total Operating Expenditures 113,819,968$ 113,819,968$ 101,954,211$ 80,862,617$ 11,865,757$ 10.4 %
2022 2022 YE Budget vs. Actual
Favorable (Unfavorable)
Percentage
Quarterly Financial Report Through December 2022 5
Revenue
General Fund taxes (property tax, sales and use tax, utility tax, business and occupation tax, and
other excise taxes) provide for over 74% of all resources supporting general governmental
activities. Licenses, charges for services, intergovernmental revenue (grants, state shared
revenue, etc.), and fines account for almost 20%. The remaining 6% is a combination of different
sources that are typically considered one-time sources. The following section provides additional
information on the most significant tax
Property Tax Year-to-date collections total $24.3 million versus a budget of $23.2 million resulting
in $1.1 million above budget expectations. As depicted in the graphic below, property taxes are
primarily collected during the months of April and October, coinciding with the due dates with the
County. The difference in budget vs. actual is due to fewer delinquent accounts than budgeted and
the collection of delinquent property taxes from previous years.
Retail Sales and Use Tax collections through Q4-2022 totaled $22.7 million, representing taxes
remitted to the City of Auburn based on sales activity from November 2021 through October 2022.
Total sales and use tax exceeded budget expectations by $2.4 million, or 11.7%, which is depicted
in the chart on the next page.
Quarterly Financial Report Through December 2022 6
Following the same trend from Q1-Q3 2022, sales tax collected in Q4 2022 continued to outpace
2021 collections. Although total 2022 collections exceeded 2021 by $978,000 (5%) this is a
significant slowdown compared to the $2.8 million (14%) increase in 2021 over 2020. Overall, sales
and use tax collections in 2022 were strong but there are indications of a slowdown approaching.
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.
Quarterly Financial Report Through December 2022 7
Overall, retail sales tax revenues are up $978,000 or 4.5% from the same period last year.
Most business categories showed increases, in particular the manufacturing and services sectors.
The following table breaks out the City’s retail sales taxes by major business sector:
Citywide retail sales tax revenues collected in 2022 were $978,000 or 4.5%, more than collections
in 2021. The greatest year-over-year revenue increases were in the services and manufacturing
sectors.
Sales tax on construction revenues are the notable exception, which saw a 6.8% decrease from
Q4-2021, which is significantly impacted by the completion of several new school construction
projects. The City has seen a steady year-over-year increase in this category since 2019 and 2022
was the first year there was a decrease since 2019.
The transportation and warehousing decrease of 33.1% entirely attributed to the decrease in
activity in the couriers and messengers subcategory. Despite this decrease, the category is still
ended $161,000, or 181%, higher than 2019.
The automotive and retail categories continue to see strong growth, 4.9% and 3.0% respectively in
2022. Since 2019 the automotive and retail categories have increased 17% and 22%, respectively.
These increases are not expected to continue. The City experience large increases in 2021 and
202 as a result of pent-up demand and supply chain issues.
The services category continues to have strong year-over-year performance with a $471,000
(9.6%) increase in 2022 over 2021. Compared to pre-pandemic activity, the categories that have
seen the most consistent and significant increases are the information, accommodation and food
services, and other categories. These three subcategories account for 68% of the total increases
in the services category. Examples of the types of businesses that fall into these subcategories
include telecommunications, computer related software/services, restaurants, and automotive
repair and maintenance.
Utility Taxes consist of interfund taxes on City utilities (Water, Sewer, Storm and Solid Waste) and
taxes on external utilities (Electric, Natural Gas, Cable, and Telephone). Overall, utility taxes
collected were $669,000 less than budgeted and $438,000 less than 2021.
2021 2022
Component Group YE Actual YE Actual Amount
Construction 3,034,111$ 2,828,362$ (205,749)$ (6.8)%
Manufacturing 501,480 749,110 247,630 49.4 %
Transportation & Warehousing 373,108 249,466 (123,642) (33.1)%
Wholesale Trade 1,423,595 1,578,405 154,810 10.9 %
Automotive 4,555,224 4,780,001 224,777 4.9 %
Retail Trade 6,461,966 6,653,103 191,137 3.0 %
Services 4,924,232 5,395,010 470,778 9.6 %
Miscellaneous 409,506 427,610 18,104 4.4 %
YE Total 21,683,222$ 22,661,067$ 977,845$ 4.5 %
Comparison of Retail Sales Tax Collections by Group
Through December 2022
Change from 2021
Percentage
Quarterly Financial Report Through December 2022 8
This decrease is attributed to a correction made in December 2022 to correct the way the King
County Metro Sewer fund was paying for sewer tax. The decrease in City utility tax was partially
offset by a $513,000 increase in external utility taxes collected.
The December 2022 correction accounts for net $438,000 decrease ($12.8 million collected in 2022
compared to $13.2 million collected in 2021) in utility tax collections for 2022.
Note: Of the total utility tax levied, 1% is allocated to the Arterial Street Preservation Fund and not
reflected in the General Fund’s portion discussed here. The large increase from 2019 ($10.9
million) to 2020 ($12.7 million) is attributed to the City’s decision mid-2020 to reallocate the 1%
Quarterly Financial Report Through December 2022 9
dedicated to the Arterial Street Preservation Fund to support General Fund operations, due to the
uncertainty of the economic impacts of COVID-19. The Arterial Street Fund’s 1% was reinstated
in 2021, but 2021 collections continued to increase due to an increase in the City’s internal utility
tax rate from 7.0% to 10.0% effective in 2021.
The table below demonstrates actual revenues compared to budget and prior year collections by
the different utility categories.
An Admission Tax of 5.0% is placed on charges for general admission, season tickets, cover
charges, etc. Although admission tax revenues of $155,000 collected through December 2022 were
slightly less than Q4-2021 and underperformed budget by $246,000. However, due to timing of tax
reporting and payment, the City had not yet received several large tax payments as of December
31st. An additional $208,000 was received in January 2023 for Q4 2022 activity. Even accounting
for timing, total taxes collected still underperformed budget by $138,000. This is mostly due to a
change in accounting and a correction made in November 2022 for the admission tax charged to
the City's Golf Course operations, which have been discontinued.
2021 2022 2022
Utility Tax Type YE Actual YE Budget YE Actual Amount Amount
City Interfund Utility Taxes 6,372,408$ 6,779,000$ 5,597,438$ $ (774,970)(12.2)% $(1,181,562)(17.4)%
Electric 3,790,297 3,760,400 4,045,920 255,623 6.7 %285,520 7.6 %
Natural Gas 1,082,748 1,122,500 1,243,873 161,125 14.9 %121,373 10.8 %
Telephone 679,925 704,200 574,500 (105,424)(15.5)%(129,700)(18.4)%
Solid Waste (external)196,733 0 66,999 (129,734)(65.9)%66,999 0.0 %
Brokered Natural Gas 151,567 131,300 219,151 67,584 44.6 %87,851 66.9 %
Cable 962,553 969,600 1,050,577 88,024 9.1 %80,977 8.4 %
YE Total 13,236,230$ 13,467,000$ 12,798,459$ (437,771)$ (3.3)% $ (668,541)(5.0)%
Through December 2022
Utility Tax by Type
2022 vs. 2021 Actual 2022 vs. Budget
Percentage Percentage
Quarterly Financial Report Through December 2022 10
Gambling Tax applies to all card games, punch board games, pull tabs, bingo games, raffles and
amusement games played within City limits. Overall, 2022 gambling tax revenues collected through
year end totaled $257,000 and were unfavorable compared to budget by $85,000. However, due
to timing of tax reporting and payment, the City had not yet received several large tax payments as
of December 31st. An additional $132,000 was received in January and February 2023 for Q4 2022
activity. Accounting for the timing of tax payments, total gambling tax exceeded budget by $45,000
and exceeded 2021 collections by $263,000.
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 annual Business License renewal fee for each business that is located within the City is $103.
Previously, all businesses were on calendar year renewal cycle, which meant that the majority of
business license revenue was collected in November and December for existing businesses
renewing their licenses, which is reflected in the large peak in the chart below.
Beginning in September of 2022 business are now on an annual renewal cycle that begins on the
date the business had originally been granted a license. This new methodology will smooth out
revenue collection throughout the year, but it has also created an unusual timing for revenue
collection in the first year of its rollout. You can see this change in the chart below with the revenue
collections smoothing out in September – December 2022.
Quarterly Financial Report Through December 2022 11
Business license revenues collected through Q4-2022 totaled $326,000, which was lower than the
projected revenues of $393,100, and $98,000 less than collections through Q4-2021. We anticipate
collections in 2023 will be slightly higher, offsetting the slight 2022 decrease due to two reasons:
increased discovery though B&O tax collections and using the State’s Business Licensing System
(BLS); and many businesses that would normally have paid their 2023 renewal fee in November
and December 2022 will now be paying throughout 2023.
Quarterly Financial Report Through December 2022 12
Building Permit revenues collected in 2022 totaled $1.0 million and were equal to budget. A total
of 543 building permits were issued in 2022 compared to 515 building permits issued in 2021,
representing an 5.4% increase in building permitting volumes. However, the total permit value has
decreased over 2021, which led to an overall $293,000 decrease from 2021.
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 during 2022 totaled $6.9 million and were $574,000 unfavorable to budgeted
expectations, but exceeded 2021 collections by $598,000.
Quarterly Financial Report Through December 2022 13
As shown in the detailed table below, much of this unfavorable budget to actual variance is due to
the timing of revenue collections from grants and the Muckleshoot Indian Tribe, which is offset by
favorable collections from State Shared Revenue that exceeded budgeted expectations by
$294,000. The largest impact on the 2022 collections compared to 2021 was due to the large
$847,000 increase in annual contributions from the Muckleshoot Tribe.
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 in
2022 totaled $8.4 million and was $342,000 or 4.2%, more than budgeted. However, charges for
services were $164,000 or 1.9% less than 2021 collections.
The General Government revenue category primarily includes the interfund assessment for the
operating costs of support departments (Finance, Human Resources, and the Legal Department).
Operating costs for these support departments are charged to the respective General Fund home
department and the portion of those costs that provide citywide benefit are recouped from other
funds via interfund charges. General Government revenues also include revenues for passport
services, reimbursement from cities participating in the South King Housing and Homelessness
2021 2022 2022
Revenue YE Actual YE Budget YE Actual Amount Amount
Federal Grants 118,696$ 119,915$ 91,598$ $ (27,098)(22.8)% $ (28,317)104.5 %
State Grants 155,813 621,100 58,034 (97,779)(62.8)% (563,066)575.9 %
Interlocal Grants 440,385 756,280 626,873 186,487 42.3 % (129,407)(69.4)%
Muckleshoot Casino Services 1,157,990 2,151,300 2,004,520 846,530 73.1 %(146,780) (17.3)%
One-Time Allocation (SB 5092)- - - - -
State Shared Revenues:
Streamlined Sales Tax 1,500,237 1,000,000 900,142 (600,095)(40.0)% (99,858)16.6 %
Motor Vehicle Fuel Tax 1,046,790 1,062,000 1,116,525 69,735 6.7 %54,525 78.2 %
Criminal Justice - High Crime 232,540 216,400 279,262 46,722 20.1 %62,862 134.5 %
Criminal Justice - Population 27,323 26,900 30,272 2,949 10.8 %3,372 114.3 %
Criminal Justice - Special Prog.97,288 99,800 134,662 37,374 38.4 %34,862 93.3 %
Marijuana Excise Tax 189,789 187,300 243,619 53,830 28.4 %56,319 104.6 %
State DUI 13,602 12,000 10,087 (3,515)(25.8)%(1,913)54.4 %
Fire Insurance Tax 98,371 88,400 104,661 6,289 6.4 %16,261 258.5 %
Liquor Excise 581,922 488,800 622,746 40,824 7.0 % 133,946 328.1 %
Liquor Profit 647,396 650,000 683,122 35,726 5.5 %33,122 92.7 %
Total State Shared:4,435,257 3,831,600 4,125,098 (310,160) (7.0)% 293,498 (94.6)%
YE Total 6,308,142$ 7,480,195$ 6,906,122$ 597,980$ 9.5 %(574,073)$ (7.7)%
Through December 2022
Intergovernmental Revenues (Grants, Entitlements & Services)
2022 vs. 2021 Actual 2022 vs. Budget
% Change % Change
2021 2022 2022
Revenue YE Actual YE Budget YE Actual Amount Amount
General Government 3,329,054$ 3,653,540$ 3,501,518$ $ 172,464 5.2 % $ (152,022)(4.2)%
Public Safety 1,270,737 988,200 864,972 (405,765)(31.9)%(123,228)(12.5)%
Development Services 1,626,502 1,041,900 1,331,856 (294,646)(18.1)%289,956 27.8 %
Culture & Recreation 2,339,300 2,375,680 2,702,879 363,579 15.5 %327,199 13.8 %
YE Total 8,565,593$ 8,059,320$ 8,401,224$ (164,369)$ (1.9)% $ 341,904 4.2 %
Through December 2022
Charges for Services by Type
2022 vs. 2021 Actual 2022 vs. Budget
Percentage Percentage
Quarterly Financial Report Through December 2022 14
Partners (SKHHP), as well as transportation projects. The majority of the unfavorable variance to
budget in the general government category through Q4-2022 was due to the timing of SKHHP
payments for City of Auburn services.
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 2022 totaled $865,000 and were $123,000 unfavorable to budget primarily due to fewer than
anticipated extra duty security services being provided.
Development services fee collections consist primarily of plan check fees, facility extension
charges, and zoning and subdivision fees. Through Q4-2022, development service fees collected
totaled $1.3 million and were $290,000 favorable to budget expectations. This variance was seen
primarily in plan check revenues along with zoning and subdivision fees. Plan check fees generated
$673,000 in revenue compared to a budget of $559,000; a favorable variance of $114,000.
Likewise, zoning and subdivision fees generated $214,000 throughout 2022 versus a budget of
$97,500 resulting in a favorable variance of 116,500.
The majority of culture and recreation revenues are derived from greens fees and pro shop sales
at the Auburn Golf Course, recreational classes, senior programs, and special events. As shown
in the chart below, overall revenues exceeded budget by $327,000, or 13.8%.
Approximately 65% of 2022 revenues have come from greens fees at the Auburn Golf Course and
pro-shop sales, and recreation programs and classes account for 20% of the revenue collected.
During 2022 the City saw greens fee revenues increase by $11,345 or 0.8% from the same period
last year, recreation class revenues have increased by $177,500 or 48.2% and special events
increased by $97,000 or 442.5%. A portion of the revenue increase over 2021 is attributable to
lower revenues caused by COVID-19 restrictions in place during 2021, which have since been
eased or removed.
Quarterly Financial Report Through December 2022 15
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. The chart below shows a detailed
breakdown of the different types of fines and penalties collected by the City.
Municipal Court fines and penalties account for 73% of the budgeted revenue in this category.
However, total revenues collected in 2022 totaled $390,000 as compared to a budget of $885,000
and were 55.9% below budget expectations and were $43,000 less than total collections in 2021.
A large portion (31%) of the unfavorable variance is due to the Redflex Photo Enforcement which
has not been active since 2018.
The most significant contributor (60%) to the under collection in this category is the collection of
municipal court related fines and penalties. As shown in the graph below, annual collections of
fines and penalties are experiencing a decreasing trend. The City contracts with the King County
Court to operate its municipal court services and the number of hearings, judgements, and
collections activity began decreasing in 2019 and has continued to dramatically decrease since
that time. Initially, the decreasing fines collected via the Court was partially offset by an increase
in false alarm fees.
2021 2022 2022
Month YE Actual YE Budget YE Actual Amount Amount
Civil Penalties 20,090$ 25,400$ 5,305$ $ (14,785)(73.6)% $ (20,095)(79.1)%
Civil Infraction Penalties 194,953 418,200 155,657 (39,297)(20.2)%(262,543)(62.8)%
Redflex Photo Enforcement 3,413 154,000 902 (2,511)(73.6)%(153,098)N/A %
Parking Infractions 78,685 121,200 81,878 3,193 4.1 %(39,322)(32.4)%
Criminal Traffic Misdemeanor 36,173 40,400 27,475 (8,698)(24.0)%(12,925)(32.0)%
Criminal Non-Traffic Fines 20,127 31,300 37,933 17,806 88.5 %6,633 21.2 %
Criminal Costs 25,675 12,100 25,457 (218)(0.8)%13,357 110.4 %
Non-Court Fines & Penalties 54,925 82,800 55,593 668 1.2 %(27,207)(32.9)%
YE Total 434,042$ 885,400$ 390,200$ $ (43,842)(10.1)% $ (495,200)(55.9)%
Through December 2022
Fines & Penalties by Type
2022 vs. 2021 Actual 2022 vs. Budget
Percentage Percentage
Quarterly Financial Report Through December 2022 16
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. A breakdown of the the
most significant miscellaneous revenue categories are listed in the chart below.
Revenues collected during 2022 in this category totaled $2.35 million and were $1.01 million
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 ($186,000) and increased p-card rebates. Also contributing to the favorable variance
were higher than average pre-payments for facility rentals in the interest & investments category.
OTHER FUNDS
Real Estate Excise Tax (REET)
REET revenues are taxes on the sale of both commercial properties and single-family residences.
These collections are receipted into the Capital Improvement Projects Fund and used for
governmental capital projects.
2021 2022 2022
Month YE Actual YE Budget YE Actual Amount Amount
Interest & Investments 95,542$ 91,200$ 657,437$ 561,895$ 588.1 %566,237$ 620.9 %
Rents & Leases 1,127,408 1,003,000 1,139,940 12,532 1.1 %136,940 13.7 %
Contributions & Donations 31,182 28,400 24,533 (6,650)(21.3)%(3,867)(13.6)%
Other Miscellaneous Revenue 241,751 223,800 529,975 288,223 119.2 %306,175 136.8 %
YE Total 1,495,884$ 1,346,400$ 2,351,885$ 856,000$ 57.2 %1,005,485$ 74.7 %
Miscellaneous Revenues by Type
Through December 2022
2022 vs. 2021 Actual 2022 vs. Budget
Percentage Percentage
Quarterly Financial Report Through December 2022 17
REET revenues collected in 2022 total $5.26 million, which is $3.02 million or 57.5% favorable to
budget expectations. This strong performance continues on the heels of 2021, which saw the
highest REET revenue collections on record for the City of Auburn. This increase throughout 2022
is attributable to the continued growth of the real estate market through increase of property values
and increasing volumes of sales.
As reflected in the chart below showing monthly transactions, REET collected in the first half of
2022 strongly outpaced 2021, however, with increased borrowing rates there were fewer real estate
transactions that took place in the second half of 2022 compared to 2021.
2021 2022 2022
Month YE Actual YE Budget YE Actual Amount Amount
1 328,140$ 186,200$ 235,988$ (92,152)$ (28.1) % 49,788$ 21.1 %
2 244,189 186,200 320,851 76,661 31.4 % 134,651 42.0 %
3 423,532 186,200 855,713 432,182 102.0 % 669,513 78.2 %
4 385,966 186,200 530,857 144,891 37.5 % 344,657 64.9 %
5 339,074 186,200 710,134 371,060 109.4 % 523,934 73.8 %
6 447,063 186,200 479,225 32,162 7.2 % 293,025 61.1 %
7 563,422 186,200 331,971 (231,451) (41.1) % 145,771 43.9 %
8 585,227 186,200 497,294 (87,933) (15.0) % 311,094 62.6 %
9 946,209 186,200 587,492 (358,717) (37.9) % 401,292 68.3 %
10 393,570 186,200 316,404 (77,166) (19.6) % 130,204 41.2 %
11 474,992 186,200 202,461 (272,531) (57.4) % 16,261 8.0 %
12 825,919 186,500 191,104 (634,815) -76.9% % 4,604 2.4 %
YE Total 5,957,304$ 2,234,700$ 5,259,495$ (697,809)$ -11.7% 3,024,795$ 57.5%
Real Estate Excise Tax Revenues
Through December 2022
2022 vs. 2021 Actual 2022 vs. Budget
Percentage Percentage
Quarterly Financial Report Through December 2022 18
American Rescue Plan Act (ARPA) Fund
In March 2021 the American Rescue Plan Act (ARPA) was signed into law, with the intent of
mitigating the economic impacts related to COVID-19. Through ARPA’s State and Local
Government Fiscal Recovery Fund program, the City was allocated $14.75 million in funding.
Council approved the City’s acceptance of ARPA funds in Resolution #5608, and the general
spending categories of those funds (as determined by a Council ad hoc committee) in Ordinance
#6832.
As of December 31, 2022, the City has expended $2.7 million on the following projects:
Project CP2125 (D Street SE and 23rd Street SE Storm Improvements) is using ARPA funding to
install curb, gutter and sidewalk along the east side of K Street SE to the south of 21st Street SE.
Throughout 2022, a total of $2,835 was spent on this project.
Expected to begin in 2023 is the Clean and Sober Housing Program, budgeted at $2 million over
the life of the program. This program is to assist residents of Auburn who are experiencing
homelessness and drug addiction who are willing to enroll in and complete inpatient treatment. The
program will cover the costs of clean and sober housing of participants for up to three years if the
participant follows the clean and sober housing agreement.
Also expected to begin in 2023, the City will be upgrading existing wireless access points and
installing new access points to expand the reach of the current broadband network to additional
Auburn residents.
Title Budget
Spent This
Quarter Lifetime Spent Remaining Budget
SCORE Revenue loss replacement 800,000 800,000 -
Public Health -Vaccination Incentive 47,500 34,980 12,520
Household Assistance -Utility Aid 524,996 218,601 306,396
Community Violence Interventions 586,400 2,690 546,235 40,165
Police Hiring Bonus 200,000 10,781 32,590 167,410
Police Retention Incentive 650,000 650,000 -
Auburn Way S Median Landscape Improvements 40,187 40,187 -
Administration -ARPA 420,000 32,496 95,378 324,622
Community Violence Interv -Spidr/Handgun 250,000 130,479 130,479 119,521
AXON Drone Program 70,600 77,352 77,352 (6,752)
Dykstra Foot Bridge 500,000 10,357 489,643
D St SE & 23rd St SE Storm Improvements 135,000 66 2,835 132,165
Other Projects (not started)10,526,549 - 10,526,549
14,751,232 253,864 2,638,993 12,112,239
Quarterly Financial Report Through December 2022 19
Street Funds
This section provides a financial overview of the City’s three street funds for the period ending
December 31, 2022. The City’s street funds are the Arterial Street Fund (Fund 102), the Local
Street Fund (Fund 103), and the Arterial Street Preservation Fund (Fund 105).
Fund 102 – Arterial Street Fund
The Arterial Street Fund is a special revenue fund that is funded by transportation grants, traffic
impact fees, a portion of the City’s gas tax receipts, Public Works Trust Fund loans, developer
contributions, and other sources. As of December 31, 2022 there were 25 separate street projects
budgeted in this fund.
Revenues collected in 2022 totaled $3.2 million as compared to budgeted revenue totaling $10.3
million, representing an undercollection of $7.1 million. The funding in capital project funds is
almost entirely dependpent on reimbursements and operating transfers directly related to the timing
of capital project. Therefore the variance between budget and actual are expected, considering the
expenditure underspend.
Total expenditures in 2022 were $4.4 million compared to budgeted expenditures totaling $12
million, representing and underspend of $7.5 million. Expenditure timing is generally determined
by the current phase of each individual capital project; expenditures tend to increase as projects
move from design phase into construction.
Fund 102 - Arterial Street 2021
Summary of Sources and Uses 2022 2022 YE 2022 YE 2021 YE
Report Period: December 2022 Budget Budget Actual Actual Amount
Revenues
Federal Grants 2,626,208$ 2,626,208$ 332,815$ 1,170,024$ (2,293,393)$ (87.3) %
State And Local Grants 951,864 951,864 450,354 (33,329) (501,510) (52.7) %
Motor Vehicle Fuel and Multimodal Taxes 620,000 620,000 646,011 641,460 26,011 4.2 %
Miscellaneous Revenue 135,000 135,000 - 43,000 (135,000) (100.0) %
Operating Transfer In 5,615,465 5,615,465 1,526,013 688,073 (4,089,452) (72.8) %
Contributions & Donations 300,000 300,000 173,498 - (126,502) (42.2) %
Investment Income 2,100 2,100 30,310 1,302 28,210 1343.3 %
Total Revenues 10,250,637$ 10,250,637$ 3,159,002$ 2,510,530$ (7,091,635)$ (69.2) %
Expenditures
Salary and Benefits 408,000$ 408,000$ 412,987$ 549,996$ (4,987)$ (1.2) %
Capital Outlay 10,562,168 10,562,168 3,307,258 2,775,327 7,254,910 68.7 %
Subtotal - Capital Project Expenditures 10,970,168 10,970,168 3,720,245 3,325,323 7,249,923 66.1 %
Services and Charges 720,000 720,000 466,920 129,884 253,080 35.2 %
Interfund Payments for Services 56,200 56,200 56,200 69,050 0 0.0 %
Debt Service Principal and Interest 206,200 206,200 206,039 206,733 161 0.1 %
Operating Transfer Out - - - - -
Total Expenditures 11,952,568$ 11,952,568$ 4,449,403$ 3,730,990$ 7,503,165$ 62.8 %
Net Change in Fund Balance (1,701,931)$ (1,701,931)$ (1,290,401)$ (1,220,460)$ 411,530$ 24.2 %
Beg. Fund Balance, January 2022 2,710,488$
Net Change in Fund Balance, December 2022 (1,290,401)
Ending Fund Balance, December 2022 1,420,086$
2022 Budgeted Ending Fund Balance 1,008,557$
2022 2022 YE Budget vs. Actual
Favorable (Unfavorable)
Percentage
Quarterly Financial Report Through December 2022 20
Most unspent capital expenditures at year-end are carried forward into the subsequent budget year
for completion of the project, at the same time any uncollected revenue and transfers will also be
carried forward. The 2022 Ending Fund Balance reflected above shows $1.4 million, however,
after adjusting for carry forwards, both revenue and expenditures, the adjusted fund balance is
expected to be $1.1 million.
The table below presents the status of the projects with the most significant budget impact on the
fund. Many capital projects are budgeted over multiple years; what is displayed below is the 2022
portion of each project’s budget and year-to-date expenditures.
Fund 103 – Local Street Fund
The Local Street Fund is a special revenue fund used for local street repair. The fund is currently
funded by interfund transfers on a project-reimbursement basis, primarily from REET funding.
Revenues through December 2022 were $1.8 million compared to budgeted revenues of $3.1
million. Expenditures through December 2022 were $2.1 million as compared to expenditures to
budgeted expenditures of $4.3 million. Highlighted in the table below and shown in the following
graph are the fund’s total expenditures related to capital projects.
Name 2022 Budget YE Actual Remaining
A Street Loop $1.0M $0.4M $0.6M
R St SE/ 29th SE Intersection Imp.$1.2M $0.2M $1.0M
AWS Imp. -Hemlock St SE to Poplar St SE $2.8M $0.5M $2.3M
All Other Projects (17 Others Budgeted)$5.9M $2.6M $3.3M
Total $11.0M $3.7M $7.2M
*Components may not sum to total due to rounding.
Fund 102 - Arterial Street
Capital Projects Status *
Fund 103 - Local Street Fund 2021
Summary of Sources and Uses 2022 2022 YE 2022 YE 2021 YE
Report Period: December 2022 Budget Budget Actual Actual Amount
Revenues
Operating Transfer In 3,072,022 3,072,022 1,781,364$ 1,539,177 (1,290,658) (42.0) %
Interest Earnings 10,500 10,500 43,472$ 3,341 32,972 314.0 %
Total Revenues 3,082,522$ 3,082,522$ 1,824,836$ 1,542,518$ (1,257,686)$ (40.8) %
Expenditures
Capital Salary and Benefits 148,500 148,500 49,957 99,955 98,543 66.4 %
Capital Outlay 4,124,057 4,124,057 2,054,974 1,361,612 2,069,083 50.2 %
Subtotal - Capital Project Expenditures 4,272,557 4,272,557 2,104,930 1,461,568 2,167,627 50.7 %
Admin Salary and Benefits - - - - -$
Admin Services and Charges 700 700 - - 700 100.0 %
Interfund Payments for Services 13,800 13,800 13,800 13,250 - 0.0 %
Total Expenditures 4,287,057$ 4,287,057$ 2,118,730$ 1,474,818$ 2,168,327$ 50.6 %
Net Change in Fund Balance (1,204,535)$ (1,204,535)$ (293,895)$ 67,700$ 910,640$ 75.6 %
Beg. Fund Balance, January 2022 3,332,074$
Net Change in Fund Balance, December 2022 (293,895)
Ending Fund Balance, December 2022 3,038,180$
2022 Budgeted Ending Fund Balance 2,127,539$
2022 2022 YE Budget vs. Actual
Favorable (Unfavorable)
Percentage
Quarterly Financial Report Through December 2022 21
Most unspent capital expenditures at year-end are carried forward into the subsequent budget year
for completion of the project, at the same time any uncollected revenue and transfers will also be
carried forward. The 2022 Ending Fund Balance reflected above shows $3.0 million, however,
after adjusting for carry forwards, both revenue and expenditures, the adjusted fund balance is
expected to be $2.3 million.
The table below presents the status of the projects with the most significant budget impact on the
fund. Many capital projects are budgeted over multiple years; what is displayed below is the 2022
portion of each project’s budget and year-to-date expenditures.
Fund 105 – Arterial Street Preservation Fund
The Arterial Street Preservation Fund is a special revenue fund that is primarily funded by a 1.0%
utility tax and grants. Highlighted in the table below are the fund’s total expenditures related to
capital projects.
Name 2022 Budget YE Actual Remaining
Lead Service Line Replacement $1.6M $1.3M $0.3M
2021 Local Street Preservation $1.1M $0.7M $0.4M
2023 Local Street Preservation $1.3M $0.0M $1.3M
All Other Projects (2 Others Budgeted)$0.2M $0.1M $0.1M
Total $4.3M $2.1M $2.2M
*Components may not sum to total due to rounding.
Fund 103 - Local Street
Capital Projects Status*
Fund 105 - Arterial Street Preservation 2021
Summary of Sources and Uses 2022 2022 YE 2022 YE 2021 YE
Report Period: December 2022 Budget Budget Actual Actual Amount
Revenues
City Utility Tax 759,900$ 759,900$ 621,938$ 708,045$ (137,962)$ (18.2)%
Electric Utility Tax 752,100 752,100 809,184 758,059 57,084 7.6 %
Natural Gas Utility Tax 224,500 224,500 248,775 216,550 24,275 10.8 %
Cable TV Tax 170,100 170,100 543,051 192,511 372,951 219.3 %
Telephone Utility Tax 140,800 140,800 115,351 135,985 (25,449) (18.1)%
Garbage Utility Tax (External Haulers)- - 11,166 32,789 11,166
Grants 3,876,251 3,876,251 1,736,882 1,032,754 (2,139,369) (55.2)%
Transportation 258,770 258,770 33,766 - (225,004) (87.0)%
Operating Transfer In - - - 437,946 -
Interest Earnings 11,400 11,400 46,852 2,742 35,452 311.0 %
Total Revenues 6,193,821$ 6,193,821$ 4,166,965$ 3,517,380$ (2,026,856)$ (32.7)%
Expenditures
Salary and Benefits 170,800$ 170,800$ 395,877$ 481,007$ (225,077)$ (131.8)%
Capital Outlay 7,336,585 7,336,585 3,802,790 3,393,360 3,533,795 48.2 %
Subtotal - Capital Project Expenditures 7,507,385 7,507,385 4,198,667 3,874,368 3,308,718 44.1 %
Supplies - - - - -
Services and Charges 150,000 150,000 9,801 22,365 140,199 93.5
Operating Transfer Out 185,000 185,000 - 68,500 185,000 100.0
Total Expenditures 7,842,385$ 7,842,385$ 4,208,468$ 3,965,233$ 3,633,917$ 46.3 %
Net Change in Fund Balance (1,648,564)$ (1,648,564)$ (41,503)$ (447,853)$ 1,607,061$ 97.5 %
Beg. Fund Balance, January 2022 3,133,696$
Net Change in Fund Balance, December 2022 (41,503)
Ending Fund Balance, December 2022 3,092,193$
2022 Budgeted Ending Fund Balance 1,485,132$
2022 2022 YE Budget vs. Actual
Favorable (Unfavorable)
Percentage
Quarterly Financial Report Through December 2022 22
Total revenue collected through 2022 totaled $4.2 million compared to the budgeted revenue of
$6.2 million. This variance is due to undercollecting grant revnue by $2.1 million, which is slightly
offset by higher than expected utility taxes by $300,000.
Expenditures through December 2022 totaled $4.2 million as compared to budgeted expenditures
of $7.8 million. Historically, the majority of this fund’s expenditures occur in the second half of each
year due to the weather sensitivity of pavement construction (this work needs to be done primarily
in the summer and early fall).
The table below presents the status of the projects with the most significant budget impact on the
fund. Many capital projects are budgeted over multiple years; what is displayed below is the 2022
portion of each project’s budget and year-to-date expenditures.
Mitigation Fund
The Mitigation Fees Fund is a special revenue fund funded from revenues from fees for new
development that are assessed at the time applications are received for development activity.
These revenues are used to address costs associated with City growth.
The fund houses two types of revenues: mitigation fees and impact fees. Mitigation fees are
variable charges collected as a result of State Environmental Policy Act (SEPA) reviews and the
City’s determination that a project must pay additional fees to compensate for a unique effect that
it has on the community.
Impact fees are set charges collected automatically for a variety of projects. These fees are adopted
annually by the City Council based on projects anticipated in the Capital Facilities Plan over the
next six years. School and Fire Impact fees are collected and reimtted on behalf of the Valley
Regional Fire Authority, Auburn School District, Kent School District, Federal Way School District,
and Dieringer School District.
Expenditures from these funds consist of transfers out to capital project funds to help support the
cost of transporation and parks capital projects. The projects funded from impact and mitigation
fee are new or enahnced services necessary to absorb the impact of development.
In 2022, the City received $1.9 million in mitigation and impact revenues, largely driven by
commercial transportation impact fees paid for by two large warehouse projects. As a result,
revenues exceeded budget, while expenditures were significantly below budget due to the timing
of multiple capital projects funded by mitigation and/or impact fee revenues.
Name 2022 Budget YE Actual Remaining
4th Street SE Preservation $2.7M $1.9M $0.8M
Lea Hill Bridge Deck Preservation $.9M $0.8M $0.1M
2nd Street SE Preservation $1.1M $0.7M $0.4M
All Other Projects (11 Others Budgeted)$2.8M $0.7M $2.0M
Total $7.5M $4.2M $3.3M
*Components may not sum to total due to rounding.
Capital Projects Status*
Fund 105 - Arterial Street Preservation
Quarterly Financial Report Through December 2022 23
The chart below shows the estimated ending fund balance of $15.4 million, however, the unspent
transfer amounts of $4.8 million will be carried forward into the 2023 budget year as capital projects
come nearer to completion. The remaining, uncommitted fund balance has been accounted for in
the capital project funding in the City’s 6 year Capital Facilities Plan.
Enterprise Funds
Detailed income and expense statements for Enterprise and Internal Service funds can be found
in an attachment at the end of this report. The attachment provides operating and – as applicable
–capital fund reports for these funds showing budget, actuals, and variances. Operating funds
house all the operating costs along with debt service and financing obligations. Capital funds show
costs associated with capital acquisition and construction. Both the operating and capital funds
have a working capital balance. This approach isolates those funds available for capital and cash
flow needs for daily operations, and project managers will know exactly how much working capital
is available for current and planned projects.
Through December 2022 the Water Utility had operating income of $5.5 million (operating
revenues less operating expenditures), approximately $577,000 above the same period last year.
Water Fund operating revenues were $883,000 or 5.6% higher than 2021; the majority of this
variance was due higher interest earnings and higher charges for service revenues. Operating
expenditures increased by $305,000 mainly due to higher personnel costs, and increased interfund
service charges and other service charges.
As shown in the graph below, billable water consumption through December 2022 totaled 3.0
million hundred cubic feet (ccf), a decrease of 39,000 ccf (1.4%) over last year. With the exception
of manufacturing and wholesale, all customer classes saw an increase in consumption compared
to last year. Since water sales is directly correlated with water consumption, total water sales has
also increased.
Fund 124 - Mitigation Fees
Summary of Sources and Uses
Report Period Through:Ending Ending
December 2022 Fund Balance Fund Balance
Transportation Impact Fees 818,000$ 4,795,465$ 5,658,214$ 1,249,120$ 1,172,353$ 9,712,444$
Traffic Migitation Fees - 100,000 37,941 - - 137,941
Fire Impact Fees 153,400 25,000 281,094 141,540 - 294,234
Fire Mitigation Fees - - 81 - - 81
Parks Impact Fees 127,800 2,320,629 3,540,843 299,250 1,357,906 4,675,016
Parks Mitigation Fees - - 186,533 - - 186,533
School Impact Admin Fees 7,200 - 102,382 2,926 - 98,110
Wetland Mitigation Fees - 5,000 67,943 - - 72,943
Interest and Investment Income 55,500 - 55,500 232,042 - 232,042
Fees in Lieu of Improvements - - 27,155 - - 27,155
Permit Processing Fees - 43,700 (43,700) - - -
Total 1,161,900$ 7,289,794$ 9,913,986$ 1,924,877$ 2,530,259$ 15,436,499$
Beginning Fund Balance, January 2022 16,041,880$
Net Change in Fund Balance, December 2022 (605,381)
Estimated Ending Fund Balance, December 2022 15,436,499$
2022 Budgeted Ending Fund Balance 9,913,986$
BUDGET YE Actuals
Revenues Expenditures Revenues Expenditures
Quarterly Financial Report Through December 2022 24
Through December 2022, the Sewer Utility finished with operating income of $3.4 million as
compared to $1.1 million through December 2021. Operating revenues were up $690,000 or 7.7%
from last year due to stronger performance in charges for City sewer service. Operating expenses
were down $1.6 million, largely attributable to the fund no longer paying interfund utility tax on the
pass-through revenues recorded in the King County Metro Sewer subfund.
Through December 2022, the Stormwater Utility had operating income of $2.7 million compared
with $2.3 million in the same last year. Operating revenues were up $600,000 compared to 2021
due to charges for City storm service and interest earnings more $184,000 higher in 2022
compared to 2021. As most Stormwater Utility charges are based on a flat rate, stormwater service
revenue is more stable and predictable than other utilities.
Operating expenditures in the Stormwater Utility were up $209,000 compared to 2021. This
increase was mainly due to increased personnel costs, supplies, and other service charges.
Prior to October 2021, the City of Auburn’s Solid Waste Utility services had been outsourced to
Waste Management and to Republic Services, who managed the contract for the annexed areas.
Beginning in October 2021, all of the City’s solid waste services are handled by Waste Management
based on a newly signed contract. This contract change is reflected in the 2022 operating revenues
which have increased by $9.3 million compared to last year, while operating expenditures have
increased by $8 million.
The majority of both the revenue and expenditure increase are attributable to new rates
implemented through the City’s updated contract with Waste Management. Additionally, higher
revenues from grants, interest earnings and hazardous waste were received in 2022 compared to
2021. Meanwhile, expenditures also increased due to increased interfund utility tax payments
resulting from increased revenue.
Through December 2022, the Solid Waste Utility had an operating loss of $1.1 million. In 2021
same period, the fund had an operating loss of $2.4 million. While these losses appear significant,
they were planned. Over the past ten years the solid waste utility had accumulated a little bit of a
fund balance. It was well known that the new contract with Waste Management would be more
Quarterly Financial Report Through December 2022 25
expensive and it was planned to rely on the fund balance to help smooth user rates over the first
three years of the new contract.
Through December 2022, the Airport Fund had operating income of $397,000 as compared with
operating income of $347,000 in 2021. Operating revenues in the Airport Fund were $199,000 more
than last year due to increased revenues from aviation fuel sales and property leases.
Operating expenditures in the Airport Fund were $180,000 more than the same period of last year.
Much of this variance consisted of higher personnel costs and fuel purchased for resale.
In 2022, the Cemetery Fund realized net operating income of $72,000 as compared with operating
income of $597,000 in 2021. Total sales revenues were down $283,000, or 14.3%, from 2021 due
to significant decreased in lot sales, markers, and openings and closings. Operating expenditures
were up $243,000 or 17.5% from last year due mostly to other service charges, supplies for resales,
and increased personnel costs.
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.
Budget
YE
Actual Variance Budget
YE
Actual Variance Budget
YE
Actual Variance Budget
YE
Actual Variance
OPERATING FUND:460 460 461 461 462 462
OPERATING REVENUES
Charges For Service 16,994,650 16,423,313 (571,337) 9,912,480 9,532,289 (380,191) 20,996,400 19,336,391 (1,660,009) 10,861,370 10,961,028 99,658
Grants - - - - - -
Interest Earnings 73,400 218,988 145,588 80,400 146,867 66,467 16,300 29,515 13,215 90,500 194,411 103,911
Rents, Leases, Concessions, & Other 30,000 72,992 42,992 - 768 768 - - - - 28,822 28,822
TOTAL OPERATING REVENUES 17,098,050 16,715,292 (382,758) 9,992,880 9,679,924 (312,956) 21,012,700 19,365,906 (1,646,794) 10,951,870 11,184,260 232,390
OPERATING EXPENSES
Salaries & Wages 2,982,226 2,631,052 351,174 1,782,483 1,699,350 83,133 - - - 2,850,129 2,614,719 235,410
Benefits 1,573,588 1,257,942 315,646 938,653 783,100 155,553 - - - 1,473,432 1,228,995 244,437
Supplies 359,850 293,372 66,478 166,050 75,683 90,367 - - - 82,050 93,958 (11,908)
Other Service Charges 5,764,730 3,997,053 1,767,677 4,374,930 1,902,489 2,472,441 21,008,800 18,823,985 2,184,815 2,742,850 2,180,659 562,191
Intergovernmental Services (Less Transfers Out)- - - - - -
Waste Management Payments
Sewer Metro Services - - -
Debt Service Interest 745,400 991,881 (246,481) 96,500 139,741 (43,241) - - - 173,700 232,161 (58,461)
Interfund Operating Rentals & Supplies 2,023,350 2,026,627 (3,277) 1,629,750 1,632,964 (3,214) - - - 2,135,300 2,137,506 (2,206)
TOTAL OPERATING EXPENSES 13,449,144 11,197,927 2,251,217 8,988,366 6,233,327 2,755,039 21,008,800 18,823,985 2,184,815 9,457,461 8,487,998 969,463
OPERATING REVENUES LESS EXPENSES
BEFORE DEPRECIATION 3,648,906 5,517,365 1,868,459 1,004,514 3,446,597 2,442,083 3,900 541,921 538,021 1,494,409 2,696,262 1,201,853
NON-OPERATING REVENUES
Operating Transfers-in - - -
Intergovernmental Loan 3,395,000 - 3,395,000
Other Non-Operating Revenues 22,500
Revenue Bond Proceeds - - -
NON-OPERATING EXPENSES
Transfer to Capital Subfund 7,624,010 - 7,624,010 - - - - - -
Other Operating Transfers-out 1,881,928 4,684,778 (2,802,850) 586,095 59,555 526,540 660,095 133,555 526,540
Debt Service Principal 1,648,600 1,516,669 131,931 457,100 532,534 (75,434) 363,700 426,973 (63,273)
Net Change in Restricted Net Assets - 68,389 68,389 - 5,203 5,203 - 15,805 15,805
Interfund Loan Repayment
Other Non-Operating Expenses
BEGINNING WORKING CAPITAL - January 1, 2022 14,609,492 14,609,492 - 9,365,295 9,365,295 - 3,713,134 3,713,134 - 11,922,725 11,922,725 -
ENDING WORKING CAPITAL - December 31, 2022 10,498,860 13,857,020 3,358,161 9,326,614 12,237,099 2,910,485 3,717,034 4,255,055 538,021 12,393,339 14,042,654 1,649,315
NET CHANGE IN WORKING CAPITAL (see Note)(4,110,632) (752,471) 3,358,161 (38,681) 2,871,804 2,910,485 3,900 541,921 538,021 470,614 2,119,929 1,649,315
CAPITAL FUND:
CAPITAL REVENUES
Interest Revenue 18,500 59,442 40,942 52,200 159,142 106,942 36,200 106,014 69,814
Grants 300,000 - (300,000) - 48,928 48,928
Contributions - - - - - - - --
Other Non-Operating Revenue - 13,341 13,341 - 21,092 21,092 - 4,690 4,690
Gain (Loss) On Sale Of Fixed Assets - -- - - - - --
Increase In Contributions - System Development 983,200 419,801 (563,399) 703,400 531,320 (172,080) 526,600 363,632 (162,968)
Interfund Revenues - - - - - - - - -
Increase In Contributions - FAA - - - - - - - - -
Proceeds of Debt Activity - - - - - - - - -
Transfers In from Operating Sub-Fund 7,624,010 - (7,624,010) - - - - - -
Transfer In from Other Funds 1,260,334 4,588,440 3,328,106 - - - - -
TOTAL CAPITAL REVENUES 10,186,044 5,081,024 (5,105,020) 755,600 711,554 (44,046) 562,800 523,264 (39,536)
CAPITAL EXPENSES
Other Non-Operating Expense - - - - - - - - -
Increase In Fixed Assets - Salaries 500,000 250,827 249,173 271,400 76,192 195,208 221,400 187,683 33,717
Increase In Fixed Assets - Benefits 200,000 120,308 79,692 108,600 33,396 75,204 88,600 87,014 1,586
Increase In Fixed Assets - Services 22,300 269 22,031 16,900 625 16,275 12,800 355 12,445
Increase In Fixed Assets - Site Improvements - 20,145 (20,145) - - - - -
Increase In Fixed Assets - Equipment - -- - - - - - -
Increase In Fixed Assets - Construction 14,957,874 7,325,461 7,632,413 6,384,347 1,351,835 5,032,512 7,542,324 2,342,867 5,199,457
Operating Transfers Out - - - - - - - - -
TOTAL CAPITAL EXPENSES 15,680,174 7,717,010 7,963,164 6,781,247 1,462,049 5,319,198 7,865,124 2,617,920 5,247,204
BEGINNING WORKING CAPITAL - January 1, 2022 6,820,039 6,820,039 - 11,392,457 11,392,457 - 11,705,042 11,705,042 -
1,325,909 4,184,052 2,858,144 5,366,810 10,641,962 5,275,152 4,402,718 9,610,386 5,207,668
NET CHANGE IN WORKING CAPITAL (see Note)(5,494,130) (2,635,986) 2,858,144 (6,025,647) (750,495) 5,275,152 (7,302,324) (2,094,656) 5,207,668
Total Change in Working Capital (9,604,762) (3,388,458) 6,216,304 (6,064,328) 2,121,309 8,185,637 3,900 541,921 538,021 (6,831,710) 25,273 6,856,983
(*) Depreciation 4,328,600 3,533,926 2,487,500 2,478,902 - - 2,341,300 1,837,459
ENDING WORKING CAPITAL - December 31, 2022
Working Capital = Current Assets
minus Current Liabilities (*) Debt service interest as shown represents actual cash outlay. Debt service principal represents actual expenditures; payments will be made as scheduled in December 2022.
Through December 2022 WATER SEWER STORM
OPERATING & CAPITAL FUNDS ENTERPRISE FUNDS
SEWER METRO
See note
OPERATING FUND:
OPERATING REVENUES
Charges For Service
Grants
Interest Earnings
Rents, Leases, Concessions, & Other
TOTAL OPERATING REVENUES
OPERATING EXPENSES
Salaries & Wages
Benefits
Supplies
Other Service Charges
Intergovernmental Services (Less Transfers Out)
Waste Management Payments
Sewer Metro Services
Debt Service Interest
Interfund Operating Rentals & Supplies
TOTAL OPERATING EXPENSES
OPERATING REVENUES LESS EXPENSES
BEFORE DEPRECIATION
NON-OPERATING REVENUES
Operating Transfers-in
Intergovernmental Loan
Other Non-Operating Revenues
Revenue Bond Proceeds
NON-OPERATING EXPENSES
Transfer to Capital Subfund
Other Operating Transfers-out
Debt Service Principal
Net Change in Restricted Net Assets
Interfund Loan Repayment
Other Non-Operating Expenses
BEGINNING WORKING CAPITAL - January 1, 2022
ENDING WORKING CAPITAL - December 31, 2022
NET CHANGE IN WORKING CAPITAL (see Note)
CAPITAL FUND:
CAPITAL REVENUES
Interest Revenue
Grants
Contributions
Other Non-Operating Revenue
Gain (Loss) On Sale Of Fixed Assets
Increase In Contributions - System Development
Interfund Revenues
Increase In Contributions - FAA
Proceeds of Debt Activity
Transfers In from Operating Sub-Fund
Transfer In from Other Funds
TOTAL CAPITAL REVENUES
CAPITAL EXPENSES
Other Non-Operating Expense
Increase In Fixed Assets - Salaries
Increase In Fixed Assets - Benefits
Increase In Fixed Assets - Services
Increase In Fixed Assets - Site Improvements
Increase In Fixed Assets - Equipment
Increase In Fixed Assets - Construction
Operating Transfers Out
TOTAL CAPITAL EXPENSES
BEGINNING WORKING CAPITAL - January 1, 2022
NET CHANGE IN WORKING CAPITAL (see Note)
Total Change in Working Capital
(*) Depreciation
ENDING WORKING CAPITAL - December 31, 2022
Working Capital = Current Assets
minus Current Liabilities
Through December 2022
OPERATING & CAPITAL FUNDS
See note
Budget
YE
Actual Variance Budget
YE
Actual Variance Budget
YE
Actual Variance Budget
YE
Actual Variance
464 464 465 465 466 466 -
24,882,900 25,010,783 127,883 1,758,700 1,794,123 35,423 1,374,200 1,674,935 300,735 - - -
190,000 194,664 4,664 - 1,000 1,000 - -
44,200 100,507 56,307 10,400 25,742 15,342 3,300 25,877 22,577 12,000 18,215 6,215
- 31,731 31,731 4,000 12,509 8,509 - 2,265 2,265
25,117,100 25,337,685 220,585 1,773,100 1,833,375 60,275 1,377,500 1,703,077 325,577 12,000 18,215 6,215
121,500 112,391 9,109 259,083 286,294 (27,211) 570,988 582,303 (11,315) - - -
73,300 70,788 2,512 120,864 121,094 (230) 319,260 284,200 35,060 175,000 34,905 140,095
80,200 52,094 28,106 660,000 597,963 62,037 261,700 426,610 (164,910) - - -
2,247,580 2,554,829 (307,249) 364,200 315,397 48,803 160,400 166,928 (6,528) 8,200 106,248 (98,048)
- - - - - - - - - - - -
23,274,600 23,042,671 231,929
- - - - - - - - - - - -
655,000 657,282 (2,282) 115,400 115,400 (0) 170,800 171,468 (668) - - -
26,452,180 26,490,054 (37,874) 1,519,547 1,436,147 83,400 1,483,148 1,631,510 (148,362) 183,200 141,154 42,046
(1,335,080) (1,152,369) 182,711 253,553 397,227 143,674 (105,648) 71,567 177,215 (171,200) (122,939) 48,261
- - - - - -
750,000 - 750,000
- 9,250 9,250
- - -
1,264,100 110,000 - -
72,700 - 72,700 23,948 29,794 (5,846) 69,700 69,362 338
- - - - - -
- (19,044) (19,044) - (2,000) (2,000)
- --
3,789,232 3,789,232 - 1,521,952 1,521,952 - 1,633,015 1,633,015 - 1,768,175 1,768,175 -
2,381,452 2,636,863 255,411 1,237,457 1,798,429 560,972 1,457,667 1,646,470 188,803 1,596,975 1,645,236 48,261
(1,407,780) (1,152,369) 255,411 (284,495) 276,477 560,972 (175,348) 13,455 188,803 (171,200) (122,939) 48,261
200 1,930 1,730 1,000 249 (751)
54,181 680 (53,501) - - -
25,000 - (25,000) - - -
- - -- - -
- - -- - -
- - -- - -
1,743,664 405,513 (1,338,151) - - -
- - - - 4,758 4,758
1,264,100 110,000 (1,154,100) - --
23,948 29,794 5,846 54,700 54,362 (338)
3,111,093 547,917 (2,563,176) 55,700 59,369 3,669
- - - - - -
- - - - - -
- - - - - -
100 5 95 100 1 99
- - - -
- - - -
3,044,013 651,819 2,392,194 54,700 54,362 338
- - - - - -
3,044,113 651,824 2,392,289 54,800 54,362 438
169,335 169,335 - 7,284 7,284 -
236,315 65,429 (170,886) 8,184 12,291 4,106
66,980 (103,906) (170,886) 900 5,006 4,106
(1,407,780) (1,152,369) (217,515) 172,571 390,086 (174,448) 18,462 192,910 (171,200) (122,939) 48,261
20,000 - 443,400 580,297 33,200 36,492 - -
(*) Debt service interest as shown represents actual cash outlay. Debt service principal represents actual expenditures;
payments will be made as scheduled in December 2022.
SOLID WASTE AIRPORT CEMETERY INSURANCE
ENTERPRISE FUNDS INTERNAL SERVICE FUNDS
See note below
OPERATING FUND:
OPERATING REVENUES
Charges For Service
Grants
Interest Earnings
Rents, Leases, Concessions, & Other
TOTAL OPERATING REVENUES
OPERATING EXPENSES
Salaries & Wages
Benefits
Supplies
Other Service Charges
Intergovernmental Services (Less Transfers Out)
Waste Management Payments
Sewer Metro Services
Debt Service Interest
Interfund Operating Rentals & Supplies
TOTAL OPERATING EXPENSES
OPERATING REVENUES LESS EXPENSES
BEFORE DEPRECIATION
NON-OPERATING REVENUES
Operating Transfers-in
Intergovernmental Loan
Other Non-Operating Revenues
Revenue Bond Proceeds
NON-OPERATING EXPENSES
Transfer to Capital Subfund
Other Operating Transfers-out
Debt Service Principal
Net Change in Restricted Net Assets
Interfund Loan Repayment
Other Non-Operating Expenses
BEGINNING WORKING CAPITAL - January 1, 2022
ENDING WORKING CAPITAL - December 31, 2022
NET CHANGE IN WORKING CAPITAL (see Note)
CAPITAL FUND:
CAPITAL REVENUES
Interest Revenue
Grants
Contributions
Other Non-Operating Revenue
Gain (Loss) On Sale Of Fixed Assets
Increase In Contributions - System Development
Interfund Revenues
Increase In Contributions - FAA
Proceeds of Debt Activity
Transfers In from Operating Sub-Fund
Transfer In from Other Funds
TOTAL CAPITAL REVENUES
CAPITAL EXPENSES
Other Non-Operating Expense
Increase In Fixed Assets - Salaries
Increase In Fixed Assets - Benefits
Increase In Fixed Assets - Services
Increase In Fixed Assets - Site Improvements
Increase In Fixed Assets - Equipment
Increase In Fixed Assets - Construction
Operating Transfers Out
TOTAL CAPITAL EXPENSES
BEGINNING WORKING CAPITAL - January 1, 2022
NET CHANGE IN WORKING CAPITAL (see Note)
Total Change in Working Capital
(*) Depreciation
ENDING WORKING CAPITAL - December 31, 2022
Working Capital = Current Assets
minus Current Liabilities
Through December 2022
OPERATING & CAPITAL FUNDS
See note
Budget
YE
Actual Variance Budget
YE
Actual Variance Budget
YE
Actual Variance Budget
YE
Actual Variance
- - 568 568 560 560
1,108,300 1,104,840 (3,460) 3,618,700 3,635,042 16,342 6,881,100 6,865,278 (15,822) 2,290,100 2,291,000 900
- - - - - -
21,600 57,711 36,111 8,000 14,054 6,054 22,700 48,459 25,759 11,000 26,949 15,949
15,000 60,044 45,044 - - - - 1,052 1,052 - 367,634 367,634
1,144,900 1,222,595 77,695 3,626,700 3,649,095 22,395 6,903,800 6,914,789 10,989 2,301,100 2,685,583 384,483
- - - 789,139 767,911 21,228 2,293,423 2,145,153 148,270 718,979 685,152 33,827
250,000 195,336 54,664 466,027 414,140 51,887 1,146,971 798,531 348,440 391,579 346,458 45,121
- - - 140,200 120,491 19,709 481,650 446,775 34,875 1,044,200 1,059,027 (14,827)
466,900 517,178 (50,278) 1,960,450 1,831,166 129,285 3,077,700 2,891,138 186,562 576,250 514,894 61,356
- - - - - - - - - - - -
- - - - - - - - - - - -
167,100 167,100 - 248,600 248,600 (0) 275,700 275,700 0 374,400 374,930 (530)
884,000 879,614 4,386 3,604,416 3,382,308 222,108 7,275,444 6,557,296 718,148 3,105,408 2,980,461 124,947
260,900 342,981 82,081 22,284 266,788 244,504 (371,644) 357,493 729,137 (804,308) (294,879) 509,429
150,000 148,960 (1,040) 6,000 3,000 (3,000) - - -
- - - 86,000 86,000
945,090 712,345 232,745 500,000 - 500,000 - - -
- - -
- - - - - - - 186,781 186,781
- 49,840 (49,840)
2,870,620 2,870,620 - 882,828 882,828 - 2,998,535 2,998,535 - 2,599,936 2,599,936 -
3,131,520 3,213,602 82,081 110,022 586,230 476,209 2,132,891 3,359,027 1,226,137 1,709,628 2,032,275 322,648
260,900 342,981 82,081 (772,806) (296,597) 476,209 (865,644) 360,493 1,226,137 (890,308) (567,660) 322,648
3,400 2,611 (789) 50,700 89,362 38,662
- - -
- - - - - -
- - - - 5,000 5,000
- - - - - -
- - - - - -
- - - 1,943,060 1,942,160 (900)
- - - - - -
- - - - - -
- - - 86,000 86,000 -
830,000 - (830,000) 2,494,186 172,841 (2,321,345)
833,400 2,611 (830,789) 4,573,946 2,295,363 (2,278,583)
- - - - - -
- - - - 8,994 (8,994)
- - - - 4,334 (4,334)
200 22 178 700 304 396
- -
1,067,667 528,449 539,218 3,983,493 1,826,932 2,156,561
330,000 - 330,000 2,489,086 34,013 2,455,073
- - - - - -
1,397,867 528,471 869,396 6,473,279 1,874,578 4,598,701
650,654 650,654 - 5,119,713 5,119,713 -
86,187 124,794 38,607 3,220,380 5,540,498 2,320,118
(564,467) (525,860) 38,607 (1,899,333) 420,785 2,320,118
260,900 342,981 82,081 (772,806) (296,597) 476,209 (1,430,111) (165,367) 1,264,744 (2,789,641) (146,875) 2,642,766
- - - - 244,000 575,234 1,482,300 1,402,477
INTERNAL SERVICE FUNDS
INNOVATION & TECHNOLOGY EQUIPMENT RENTALWORKER'S COMPENSATION FACILITIES