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Home My WebLink AboutQ1 2023 Update for Agenda Packet City of Au B urn 1st Quarter 2023 Financia Report CITY COUNCIL STUDY SESSION TUNE 12 , 2023 General Fund Revenue Overview Variance to Variance Budget to 2022 2022 2023 2023 Favorable Favorable Revenue YTD Actual YTD Budget YTD Actual (Unfavorable) % (Unfavorable) Property Tax $ 1,153,604 $ 1,204,700 $ 1,103,605 $ (101,095) $ (49,999) Sales Tax 5,673,725 4,952,000 5,616,703 664,703 (57,022) Utility Tax 3,379,783 3,188,381 3,363,156 174,775 (16,627) B&O Tax - 1,370,240 1,688,685 318,445 1,688,685 Other Tax 1,171,338 1,032,611 1,108,692 76,081 (62,646) Licenses and Permits 660,045 730,100 667,524 (62,576) 7,479 Intergovernmental 1,433,379 1,393,249 1,486,422 93,173 53,043 Charges for Services 2,103,010 2,100,890 2,339,418 238,528 236,408 Other 780,968 654,202 936,900 282,698 155,932 Transfers In 724,000 2,089,000 2,015,000 (74,000) 1,291,000 Total Revenue $ 17,079,852 $ 18,715,373 $ 20,326,105 $ 1,610,732 9% $ 3,246,253 19% Total Expenditures $ (19,055,957) $ (22,732,285) $ (21,327,429) $ 1,404,856 -6% $ (2,271,472) 12% Highlights ■General Fund has collected 9% more revenue YTD compared to budget and 19% more than YTD last year ■General Fund has underspent the budgeted expenditures by 6% YTD and has spent 12% more compared to YTD last year Tax Revenue 2023 budgeted taxes account for $68.8 million, or 75% of the General Fund budget Property Tax (35% of taxes) • $24.0 million 2023 budget • Expected to collect 100% of the budget by year-end Retail Sales and Use Tax (30% of taxes) • $20.3 million 2023 budget • $57,000 (1%) under 2022 YTD actual • $664,000 (13%) over 2023 YTD budget Tax Revenue Construction: Completion of several large Comparison of Retail Sales Tax Collections by Group projects in 2022 led to lower Jan. and Feb. Through March 2023 figures, offset a large March (January activity) 2022 2023 Change from 2022 - ups wing.— Component Group YTD Actual YTD Actual Amount Percentage Manufacturing: a DOR correction January 2022 Construction $ 692,664 $ 677,484 ` $ (15,181) (2.2) % accounted for an inflated Q1 2022 and 100% of Manufacturing 345,395 138,050 (207,345) (60.0) % the $207k decrease. Transportation & Warehousing 84,228 56,265 (27,964) (33.2) % Wholesale Trade 321,255 396,540 75,285 23.4 % Transportation & Warehousing: The $28k Automotive 1,101,151 1,178,351 77,200 7.0 % decrease is entirely attributed to couriers and Retail Trade 1,739,428 1,735,724 (3,705) (0.2) % messengers. Services 1,307,202 1,373,134 65,933 5.0 % Miscellaneous 82,401 61,156 (21,246) (25-8) % Automotive and Retail: mostly impacted by supply chain issues and inflation. YTD Total $ 5,673,725 $ 5,616,703 $ (57,022) (1.0) % 1 Services: telecommunications, software/IT services, restaurants, and auto repair and maintenance account for 77% of the $66k increase. Tax Revenue Utility Tax (21% of taxes) Utility Tax • $14.4 million 2023 budget $16.0 t�20238udget �2023 YTD Actual -2022 Actual • Water, Sewer, Storm, Solid Waste Utility Tax rate 9% $14.0 ($6.8 million of total budget) 0 Electric, Natural Gas, Cable, and Telephone Utility Tax $12.0 rate 5% ($7.6 million of total budget) $10.0 • $174,000 (5%) over 2023 YTD budget 58.0 • Higher than expected natural gas and cable tax collected $6.0 • $17,000 (.5%) under 2022 YTD actual 53.4M $4.0 • Lower than expected City Utility tax, offset by higher natural gas collections $2.0 $0.0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Tax Revenue Business and Occupation Tax (B&O) (8% of total taxes) • $5.5 million 2023 budget • $1.7 million collected YTD • $1.4m in gross receipts tax • $300,000 in square foot tax • Mostly comprised of 2022 Q4 filers • $318,000 (23%) over 2023 YTD budget Other Taxes (8% of total taxes) • $4.4 million budgeted • Criminal justice sales tax, admissions tax, gambling tax, leasehold excise tax, franchise fees • $76,000 (7%) over 2023 YTD budget • $101,000 (5%) under 2022 YTD actual ▪ Both variances are due to higher sales tax collections offset by the timing of the collection of cable franchise fees Licenses and Permits Accounts for 3% of the total General Fund Resources Building Permits s1.6 1=2022Budget —0-2022 YE Actual —2021 Actual $2.5 million budgeted in 2023 Most all of this ($2.0 million is related to $1.4 building permits) $1.2 $1.0 $63,000 (9%) under 2023 YTD budget s1.o • $7,500 (1%) over 2022 YTD actual ° s0_8 J • • Entirely attributed to building permit and $0.6 • related revenue, offset slightly by increased business license revenue $0.4 -• Total building permits issued YTD 2023 $0.2 = • exceeded 2022 by 12% but total value of permit has decreased by 62% sac) 1 2 3 4 5 6 7 8 9 10 11 12 Intergovernmental Revenues include: Federal/State/Interlocal Grants, Muckleshoot Indian Tribe (MIT) Compact, State Shared Revenue • State Shared Revenue: Streamlined Sales Tax, Motor Vehicle Excise Tax (MVET), Marijuana/Liquor excise taxes, Criminal Justice Sales Tax $93,000 (7%) over 2023 YTD budget • Timing of contribution payment from the MIT compact $53,000 (4%) over 2022 YTD actual • Timing of contribution payment from the MIT compact offset by a decrease in State Shared revenue Charges for Services General Government - $25,000 below budget (2%) • Timing of SKHHP Payments — Reimbursement basis Public Safety - $10,000 above budget (4%) • Reimbursement for law enforcement services provided for private business • Reimbursement for officers at the Auburn School District and Muckleshoot Contract • Collected more DUI emergency response fees than budgeted Development Services - $79,000 below budget (27%) • Plan check fees, facility extension charges, zoning and subdivision fees • A lot of the primary drivers for this is tied to the permitting activity Culture and Recreation - $333,000 above budget (72%) • Green fees and pro shop sales account for 65% of total revenue in category • Recreation Classes and Special Events account for the favorable performance over budget General Fund Expenditures byDepartment 2022 YTD 2023 YTD 2023 YTD Budget vs Actual Department Actual Budget Actual $ % Council, Mayor,Admin $ 638,380 $ 752,600 $ 668,906 $ 83,694 11% Diversity,Equity and Inclusion - 163,200 82,631 80,569 49% Municipal Court 183,634 239,260 252,957 (13,697) -6% Community Development 1,472,814 1,706,400 1,581,490 124,910 7% Housing and Homelessness Outreach* 195,531 540,792 437,099 103,692 19% Public Works 838,418 1,102,400 1,035,836 66,564 6% Streets(M&O) 841,017 1,047,700 983,310 64,390 6% Parks,Art,and Recreation 3,062,746 3,275,700 3,427,650 (151,950) -5% Police 8,311,313 9,248,700 8,495,621 753,079 8% SCORE 809,526 1,400,100 1,173,547 226,553 16% Internal Services(HR, Finance, Legal,Nondepartment) 2,702,579 3,255,433 3,233,381 22,053 1% Total $ 19,055,958 $ 22,732,285 $ 21,372,428 $ 1,359,857 6% ARPA Update 2023 Title Budget YTD Lifetime Spend Remaining Completed Projects $ 1,450,000 $ - $ 1,450,000 $ - Projects in Process Utility Assistance Program 525,000 - 218,601 306,399 Body Cameras 650,000 4,091 550,325 99,675 Vaccination Incentive Program 47,500 - 34,980 12,520 Human Services Grants includes admin 1,000,000 16,782 16,782 983,218 Dykstra Foot Bridge 500,000 - 10,357 489,643 Minor Improvements to Qualifying Neighborhood Parks 150,000 19,603 19,603 130,397 Limited Term Employee(LTE):Grants Coordinator 420,000 23,352 118,729 301,271 Paving Gravel Roads 636,866 628 3,463 633,403 Translation Services 75,000 1,216 1,216 73,784 Auburn Way South Median Landscape Replanting/Irrigation 50,000 - 40,187 9,814 Auburn Way South Roundabout 150,000 29 29 149,971 Emergency Housing Voucher Program 2,000,000 14,200 14,200 1,985,800 Encampment Cleanup 500,000 147,405 147,405 352,595 Broadband grants to hardest hit communities 180,000 125,266 137,818 42,182 Community violence intervention programs(drone,SPIDR Tech) 250,000 - 207,831 42,169 Signing bonuses for lateral hires 200,000 33,080 65,670 134,330 Other Projects(not started) 5,966,866 - - 5,966,866 Total $ 14,751,232 $ 385,651 $ 3,037,196 $ 11,714,036 Non -General Fund Highlights Ca ital p Real Estate Excise Tax (REET) Real Estate Excise Tax YTD Collections: $796,000 I i 3 Budget —0=2023_YID Actual —2022Actual $239,000 over 2023 YTD budget 56.0 $616,000 less 2022 YTD actual 55.0 Transportation Impact Fees 54.0 YTD Collections: $71,400 0 $77,000 less 2022 YTD actual 53.0 Park Impact Fees 52.0 YTD Collections: $24,500 s1.0 so.ann $52,500 less 2022 YTD actual so° 1 2 3 4 5 6 7 8 9 10 11 12 Non -General Fund Highlights — Enterprise Funds Water, Sewer, and Stormwater Utilities • Before capital contributions, each utility ended Q1 with operating incomes: $948,000, 989,000, and $920,000, respectively • Q1 Ending Fund Balance: $16.7 million, $19.1 million, and $21.6 million, respectively ▪ Water Fund Balance decreased $3.4 million related to budgeted capital improvements ▪ Sewer Fund Balance increased $2.1 million due to the unspent budget for capital improvements Stormwater Fund Balance remained the same due to the unspent budget for capital improvements Solid Waste Utility • Operating loss of $71,000 • Overall Ending Fund Balance: $2.1 million • Planned loss to help smooth rate increases over the 2022-2024 time period ■ Questions