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HomeMy WebLinkAbout06-24-2024 AgendaCity Council Study Session Community Wellness Special F ocus Area J une 24, 2024 - 5:30 P M City Hall Council Chambers A GE NDA Watch the meeting L I V E ! Watch the meeting video Meeting videos are not available until 72 hours after the meeting has concluded. I .C A L L TO O R D E R I I .P UB L I C PA RT I C I PAT I O N A .P ublic P articipation The A uburn City Council Study Session Meeting scheduled for Monday, J une 24, 2024 at 5:30 p.m. will be held in person and virtually. Virtual Participation L ink: To view the meeting virtually please click the below link, or call into the meeting at the phone number listed below. The link to the Virtual Meeting is: https://www.youtube.com/user/watchauburn/live/?nomobile=1 To listen to the meeting by phone or Zoom, please call the below number or click the link: Telephone: 253 215 8782 Toll F ree: 877 853 5257 Zoom: https://us06web.zoom.us/j/84234291459 B .Roll Call I I I .A G E ND A MO D I F I C AT I O NS I V.A NNO UNC E ME NT S , R E P O RT S , A ND P R E S E NTAT I O NS A .B riefing - S eeClickFix (Gaub) (15 Minutes) V.A G E ND A I T E MS F O R C O UNC I L D I S C US S I O N A .1st Quarter 2024 F inancial Report (T homas) (20 Minutes) V I .C O MMUNI T Y W E L L NE S S D I S C US S I O N I T E MS A .Resolution No. 5773 (K rum) (10 Minutes) A Resolution approving the South K ing Housing and Homelessness P artners 2025 Work P lan and 2025 Operating Budget Page 1 of 88 B .2025-2029 C D B G Consolidated P lan Update (K rum) (30 Minutes) A presentation to provide an overview of the upcoming planning process for the City of A uburn’s 2025-2029 Consolidated Plan V I I .A D J O UR NME NT Agendas and minutes are available to the public at the City Clerk's Office, on the City website (http://www.auburnwa.gov), and via e-mail. Complete agenda packets are available for review at the City Clerk's Office. Page 2 of 88 AGENDA BILL APPROVAL FORM Agenda Subject: Briefing - SeeClickFix (Gaub) (15 Minutes) Date: June 18, 2024 Department: Public Works Attachments: Presentation Budget Impact: Current Budget: $0 Proposed Revision: $0 Revised Budget: $0 Administrativ e Recommendation: For discussion only. Background for Motion: Background Summary: Staff will provide a briefing on the SeeClickFix App and how we use the information provided in requests made by residents and customers to integrate with our asset and work management software, Cartograph OMS, to respond to identified concerns. Rev iewed by Council Committees: Councilmember:Tracy Taylor Staff:Ingrid Gaub Meeting Date:June 24, 2024 Item Number: Page 3 of 88 AUBURN VALUES S E R V I C E ENVIRONMENT E C O N O M Y C H A R A C T E R SUSTAINABILITY W E L L N E S S C E L E B R AT I O N M&O SERVICES THE SEE CLICK FIX PROCESS INGRID GAUB & ERIK COTTLE CITY COUNCIL STUDY SESSION JUNE 24, 2024 Public Works Department Engineering Services Airport Services Maintenance & Operations Services Page 4 of 88 Quick and easy way for residents to report an issue anytime Geo Tracking to pin-point location of request Direct integration to OMS (task management software) so staff is alerted right away Easy for managers and supervisors to track tasks and resources Automation to alert resident when issue has been resolved WHY ITS IMPORTANT SERVICE ENVIRONMENT ECONOMY CHARACTER SUSTAINABILITY WELLNESS CELEBRATION Page 5 of 88 THE APP SERVICE ENVIRONMENT ECONOMY CHARACTER SUSTAINABILITY WELLNESS CELEBRATION Page 6 of 88 REQUESTS WE RECEIVE Light Pole Down Sink Hole Graffiti Tree Down Sign Down Storm Drain Illegal Dumping Broken Water Main SERVICE ENVIRONMENT ECONOMY CHARACTER SUSTAINABILITY WELLNESS CELEBRATIONPage 7 of 88 WHAT HAPPENS AFTER A REQUEST IS SUBMITTED Based on nature of request, appropriate department is alerted via e-mail Details are investigated and request ownership is changed if necessary Tasks are created for crews to address and resolve the request. Crews complete all tasks associated with the request and then the request is closed An e-mail alert will go to the resident letting them know actions taken and that the request has been resolved. SERVICE ENVIRONMENT ECONOMY CHARACTER SUSTAINABILITY WELLNESS CELEBRATION Page 8 of 88 Requests entered by City Staff (200) Requests entered through See Click Fix (663) RECENT REQUESTS 863 TOTAL IN LAST 2 MONTHS SERVICE ENVIRONMENT ECONOMY CHARACTER SUSTAINABILITY WELLNESS CELEBRATIONPage 9 of 88 INSIDE THE REQUEST SERVICE ENVIRONMENT ECONOMY CHARACTER SUSTAINABILITY WELLNESS CELEBRATION Location Requestor Description of Issue Department Assignment Public Comments Page 10 of 88 INSIDE THE REQUEST SERVICE ENVIRONMENT ECONOMY CHARACTER SUSTAINABILITY WELLNESS CELEBRATION Internal Comments Requestor Information Tasks Pictures and Attached Files Page 11 of 88 INSIDE THE TASK SERVICE ENVIRONMENT ECONOMY CHARACTER SUSTAINABILITY WELLNESS CELEBRATION Asset Information and Location Details From Request Labor Assignments Labor/Equipment/Material Cost Page 12 of 88 REQUEST/TASK DETAIL REPORT SERVICE ENVIRONMENT ECONOMY CHARACTER SUSTAINABILITY WELLNESS CELEBRATION Request Detail Task Detail Page 13 of 88 Questions? SERVICE ENVIRONMENT ECONOMY CHARACTER SUSTAINABILITY WELLNESS CELEBRATION Page 14 of 88 AGENDA BILL APPROVAL FORM Agenda Subject: 1st Quarter 2024 Financial Report (Thomas) (20 Minutes) Date: June 12, 2024 Department: Finance Attachments: Financial Report through March 2024 Q1 2024 Pres entation Budget Impact: Current Budget: $0 Proposed Revision: $0 Revised Budget: $0 Administrativ e Recommendation: For discussion only. Background for Motion: Background Summary: The Financial Report summarizes the general state of the 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 March 31, 2024, based on financial data available as of May 15, 2024. Rev iewed by Council Committees: Councilmember:Kate Baldwin Staff:Jamie Thomas Meeting Date:June 24, 2024 Item Number: Page 15 of 88 Quarterly Financial Report Through March 2024 This report provides an overview of the City’s overall cash-basis financial position for the fiscal period ending March 31, 2024, reflecting data available as of May 15, 2024. References to budget, actual and prior year amounts reflect year-to-date numbers, unless otherwise stated. Year-to -date budget expectations are generally based on the two prior years of data. General Fund Overview The City has entered 2024 on the heels of a solid financial performance in 2023 , and is currently in the midst of developing the biennial budget for the fiscal years of 2025 -2026. General Fund revenues have generally exceeded budget expectations and largely recovered from the impact of COVID-19. With the adoption of Ordinance #6918 in November 2023, the annual budget consists of $106.0 million in revenues and $104.0 million in expenditures - a planned increase in General Fund balance of $2.0 million. Through the first quarter of 2024, the General Fund outperformed revenue expectations. Comparing year-to -date 2024 revenues versus year-to-date 2023 revenues, the City collected $6.1 million or 30.0% more. A large contributor to this outcome was Business and Occupation (B&O) tax revenue; during the first quarter the City collected $3.1 million in B&O taxes, which includes back dated collections. However, the City anticipates that B&O revenues will decline from a high point of $10.6 million as payments related to prior periods decrease . The City also implemented a new photo enforcement program during the second half of 2023 which generated $755,500 of new revenue during the first quarter of 2024.Slightly mitigating the increases in General Fund revenues, the City also saw increased expenditures from the same period last year by $1.3 million or 6.1%. This is du e to planned increases in overhead costs and professional services (citywide projects and improvements). To help attract visitors/tourists into the City, a wide range of recreational classes and access to the Auburn Golf Course. Greens fees at the Auburn Golf Course have remained a staple revenue source, comprising roughly 67% or $505,000 of the total culture and recreation revenues. Recreational classes have remained stable from 2023 collections and with the upcoming spring and summer months, an anticipated increase to golf course revenues is expected. Overall, General Fund revenues collected through Q1-2024 totaled $26.4 million as compared to the year-to-date budget of $20.7 million, and were $5.5 million, or 26.4% above budget expectations. General Fund expenditures through Q1 -2024 totaled $22.6 million compared to the year-to-date budget of $24.3 million; resulting in a $800,000 or 3.4% underspend. Page 16 of 88 Quarterly Financial Report Through March 2024 2 Revenue: The following factors had the most significant impacts on the budget vs. actual revenue collected: • Business and Occupation Tax: Revenues collected throughout Q1-2024 totaled $3.1 million, exceeding the year-to-date budget by $1.3 million. Some of this favorable variance is due to the collection of tax obligation incurred in prior years and is not expected to continue at the same level in subsequent years. [page 7] • Fines and Penalties: Collections through the first quarter of 2024 were $1.07 million in total and $813,000,000 favorable to budget. Higher than expected revenues from a new photo enforcement program implemented by the City during the second quarter of the prior year contributed $683,500 toward the favorable variance. Other non -court fines and penalties are $134,000 favorable versus budget expectations, mainly due to interest and penalties on B&O tax collection. [pages 17-18] • Intergovernmental revenue: Q1-2024 revenues collected totaled $1.9 million, which was $623,500 favorable to the year-to-date budget. The variance is mainly due to the timing of collections from the Muckleshoot Indian Tribe (MIT). Furthermore, the City received an interlocal grant covering prior year projects as well , contributing to the favorable variance. [page 14] • Retail Sales Tax: The sales tax report for distributions through March 2024 (provided as an attachment to this report) reflects amounts remitted to the City of Auburn based on sales between November 2023 and January 2024. Collections totaled $5.7 million, a 0.9% increase from last year. Likewise, compared to the annual budget, sales tax has a favorable variance of $563,400 or 11.0%. The increase resulted from multiple categories, particularly services and transportation. [pages 5-7] • Utility Tax: Revenues collected through Q1-2024 totaled $3.8 million and were $653,400 higher than budget expectations. Collection of backdated utility taxes from solid waste haulers provided roughly 44% of the favorable variance. Likewise, city utility interfund taxes provide a favorable variance of $247,000, mainly due to higher solid waste collections resulting from a combination of increase levels of service provided and increased rates. [pages 8-9] Expenditures: Most departments operated within their year-to-date budgets through the first quarter of 2024, with some variances due to the timing of professional services payments , as well as expenses related to projects facilitated by ARPA funding. Overall favorable variance to the year-to-date expense budget is $799,000. Contributing to the favorable variance was a savings in salaries and benefits expenses; as of the compilation of this report, there were 29 vacant regular full-time positions in the City. Services and charges were also below budget expectations through the first quarter of 2024. This is partially due to the timing of spend on projects in -progress within the City. Page 17 of 88 Quarterly Financial Report Through March 2024 3 Enterprise Funds Overview The City’s enterprise funds account for operations with revenues primarily provided from user fees, charges, or contracts for services. In the prior year, we noted that the City’s cash and investment balances had increased significantly, due to increased interest rates and yields to maturity for the City’s investment accounts. In 2024, the maturation of certain investments means the Enterprise funds which previously saw significant year-over-year increases in interest earnings are continuing to see higher interest inc ome, albeit at a lower growth rate. Through Q1 - 2024, total interest earnings for the City’s enterprise funds increased $55,000 from Q1 -2023 to Q1-2024. The Water Fund ended Q1-2024 with operating income of about $1.1 million, an increase of $157,000 compared to the same period last year. This increase is due primarily to increased water sales (+$373,000) and was partially offset by increased operating expenses (+$170,000). Given the seasonality of Water revenues, we generally expect Water revenues to be lower in Q1, while gradually increasing through Q2 and reaching their peak in Q3 when the weather is the warmest. Operating revenues through Q1-2024 were higher than expected compared to our budget projections (+$288,000), while operating expenses also came in under budget (-$300,000), resulting in a $588,000 favorable variance to budget. [pages 22-23] The Sewer Fund ended Q1-2024 with operating income of about $1.2 million versus $989,000 in the same period last year. The main drivers of this $236,000 increase are increased service charges and interest earnings, compared to the prior year. In total, operating income for th is fund was $1.3 million favorable compared to our budget projections, due to favorable variances in both operating revenues (+$548,000) and operating expenses (-$724,000). [page 23] The Stormwater Fund ended Q1-2024 with operating income of about $832,000, which is $88,000 lower than Q1-2023. While charges for storm service did increase $151,000 compared to the prior year, the fund also saw a year-over-year decrease in interest earnings. Additional drivers included increased personnel costs (+$109,000) and miscellaneous service costs (+$69,000), including utility taxes. This fund outperformed budget projections by $636,000 through Q1-2024, with favorable variances to budget in operating revenues (+$428,000) and operating expenses (-$208,000). [page 23] The Solid Waste Fund ended Q1-2024 with operating income of about $5.0 million, which is significantly higher than the operating loss of $71,000 that the fund saw in Q1 -2023. This is due to a difference in the timing of payments made to the solid waste vendor, which lowered the amount paid in Q1-2024 compared to the prior year. This fund also saw an increase of $532,000 in charges for service due to higher rates in 2024, which contributed to the overall year-over-year increase. This timing difference also impacted variances to budget, given tha t the City recorded less expenses than originally anticipated through Q1 -2024. [page 24] Internal Service Funds Overview Internal service funds provide services to other City departments and include functions such as Insurance, Worker’s Compensation, Facilities, Innovation & Technology, and Equipment Rental. No significant variances were reported in these funds during Q1 -2024. [page 24] Page 18 of 88 Quarterly Financial Report Through March 2024 4 General Fund Details The following chart is a detailed breakdown of the General Fund’s different sources of revenue and expenditures, broken down by department: General Fund 2024 2023 Summary of Sources and Uses Annual YTD YTD YTD Budget Budget Actual Amount Percentage Actual Amount Percentage Operating Revenues Property Tax 24,486,386$ 1,140,900$ 1,050,494$ (90,406)$ (7.9)%1,103,605$ $ (53,111)(4.8)% Retail Sales Tax 20,649,700 5,106,000 5,669,407 563,407 11.0 %5,616,703 52,704 0.9 % Affordable Housing Sales Tax Credit 177,587 56,000 47,917 (8,083)(14.4)%48,202 (285)(0.6)% Sales Tax - Pierce County Parks 130,000 31,400 32,978 1,578 5.0 %32,886 92 0.3 % Criminal Justice Sales Tax 2,478,000 594,000 750,485 156,485 26.3 %775,552 (25,067)(3.2)% Brokered Natural Gas Tax 150,000 54,600 95,328 40,728 74.6 %144,350 (49,022)(34.0)% City Utilities Tax 5,989,667 1,313,400 1,560,380 246,980 18.8 %1,445,233 115,147 8.0 % Business & Occupation Tax 7,029,750 1,757,438 3,101,343 1,343,906 76.5 %1,688,685 1,412,658 83.7 % Admissions Tax 312,445 93,300 258,571 165,271 177.1 %114,096 144,475 126.6 % Electric Tax 4,426,743 1,064,300 1,097,323 33,023 3.1 %1,041,482 55,841 5.4 % Natural Gas Tax 1,658,523 394,100 323,043 (71,057)(18.0)%348,245 (25,201)(7.2)% Cable Franchise Fee 880,889 220,222 195,621 (24,601)(11.2)%- 195,621 N/A % Cable Utility Tax 931,981 232,995 208,503 (24,492)(10.5)%280,942 (72,438)(25.8)% Cable Franchise Fee - Capital 51,539 12,885 10,197 (2,688)(20.9)%16,289 (6,092)(37.4)% Telephone Tax 435,847 91,669 230,267 138,598 151.2 %81,478 148,790 182.6 % Solid Waste Tax (external)621,973 24,651 314,269 289,617 1174.9 %21,420 292,848 1367.1 % Leasehold Excise Tax 255,335 15,200 17,868 2,668 17.6 %17,790 78 0.4 % Gambling Excise Tax 295,300 76,313 29,320 (46,993) (61.6)%103,877 (74,557)(71.8)% Taxes sub-total 70,961,665$ 12,279,373$ 14,993,317$ 2,713,944$ 22.1 %12,880,835$ $2,112,481 16.4 % Business License Fees 461,250$ 144,100$ 158,848$ 14,748$ 10.2 %204,050$ $ (45,201)(22.2)% Building Permits 956,698 220,700 234,452 13,752 6.2 %142,518 91,934 64.5 % Other Licenses & Permits 1,150,950 300,800 253,287 (47,513)(15.8)%320,956 (67,669)(21.1)% Intergovernmental (Grants, etc.)5,558,102 1,303,854 1,927,291 623,437 47.8 %1,486,422 440,869 29.7 % Charges for Services: - N/A General Government Services 4,698,004 1,161,662 1,131,944 (29,718)(2.6)%1,091,757 40,187 3.7 % Public Safety 1,057,000 264,250 269,302 5,052 1.9 %237,189 32,113 13.5 % Development Services Fees 1,158,080 275,700 398,853 123,153 44.7 %214,228 184,624 86.2 % Culture and Recreation 2,915,485 674,557 748,250 73,693 10.9 %796,244 (47,993)(6.0)% Fines and Penalties 1,071,819 257,105 1,069,818 812,713 316.1 %103,818 966,000 930.5 % Fees/Charges/Fines sub-total 19,027,388$ 4,602,729$ 6,192,045$ 1,589,316$ 34.5 %4,597,182$ $1,594,863 34.7 % Interest and Investment Earnings 315,000$ 78,750$ 427,829$ 349,079$ 443.3 %248,841$ $ 178,988 71.9 % Rents and Leases 1,142,948 291,200 289,213 (1,987)(0.7)%300,463 (11,251)(3.7)% Contributions and Donations 42,000 3,312 2,352 (960)(29.0)%434 1,918 441.9 % Other Miscellaneous 208,000 73,403 196,211 122,808 167.3 %192,895 3,316 1.7 % Transfers In 14,203,054 3,550,764 4,270,722 719,959 20.3 %2,015,000 2,255,722 111.9 % Insurance Recoveries - Capital & Operating 25,000 6,250 29,294 23,044 368.7 %90,449 (61,155)(67.6)% Other Revenues sub-total 15,936,002$ 4,003,678$ 5,215,621$ 1,211,942$ 30.3 %2,848,082$ $2,367,539 83.1 % Total Operating Revenues 105,925,055$ 20,885,780$ 26,400,982$ 5,515,202$ 26.4 %20,326,099$ $6,074,883 29.9 % Operating Expenditures Council & Mayor 1,459,725$ 382,800$ 376,608$ 6,192$ 1.6 %371,523$ $ 5,084 1.4 % Administration 1,325,280 310,100 326,024 (15,924)(5.1)%297,383 28,640 9.6 % Human Resources 2,527,139 631,100 596,959 34,141 5.4 %595,939 1,019 0.2 % Municipal Court & Probation 3,040,544 239,686 265,572 (25,886)(10.8)%252,957 12,614 5.0 % Finance 5,455,040 1,292,300 1,216,178 76,122 5.9 %1,150,000 66,179 5.8 % City Attorney 4,613,393 1,019,900 951,573 68,327 6.7 %1,384,348 (432,775)(31.3)% Community Development 7,457,716 1,501,600 1,597,614 (96,014)(6.4)%1,589,461 8,153 0.5 % Anti-Homelessness 3,099,432 774,900 567,118 207,782 26.8 %- 567,118 N/A % DEI 752,808 188,100 175,123 12,977 6.9 %82,631 92,493 111.9 % Jail - SCORE 5,700,000 1,425,000 1,216,494 208,506 14.6 %1,173,547 42,947 3.7 % Police 37,253,306 9,603,700 8,679,621 924,079 9.6 %8,495,621 184,000 2.2 % Public Works 4,744,995 1,078,500 1,244,139 (165,639)(15.4)%1,035,836 208,303 20.1 % Parks, Arts & Recreation 15,941,772 3,490,000 3,660,307 (170,307)(4.9)%3,427,650 232,656 6.8 % Streets 4,839,339 1,065,300 1,053,765 11,535 1.1 %938,310 115,454 12.3 % Non-Departmental 5,810,301 429,854 706,518 (276,664)(64.4)%540,193 166,326 30.8 % Total Operating Expenditures 104,020,790$ 23,432,840$ 22,633,612$ 799,228$ 3.4 %21,335,400$ $1,298,212 6.1 % 2024 YTD Actual vs. 2023 Actual Favorable (Unfavorable) 2024 YTD Budget vs. Actual Favorable (Unfavorable) Page 19 of 88 Quarterly Financial Report Through March 2024 5 Revenue The combined total of property, sales/use, utility, gambling, and admissions taxes provides over 70% of all resources supporting general governmental activities. Licenses, charges for services, intergovernmental revenue (grants, state shared revenue, etc.) and fines contribute a further 25% of total revenue to the General Fund . The remaining 5% is comprised of a combination of different sources that are considered to be one -time resources. The following section provides additional information on the most significant tax resource streams. Property Tax collections in the first quarter totaled roughly $1.1 million, approximately $90,000 or 7.9% below budget projections.. However, 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 Q1-2024 totaled $5.7 million, re presenting taxes remitted to the City of Auburn based on sales from November 2023 through January 2024. Overall, these revenues are on par with collections through Q1 -2023, with steady performances in the transportation (+$18,425), wholesale (+$9,300), and services (+$24,400) industries more than offsetting slight decreases in most of the remaining industries. Of the main contributors to sales tax revenues, construction (-$33,500) and automotive (-$9,000) generated less revenue than in Q1-2023. In addition to the small overall in crease from Q1-2023, these revenues are favorable to budget by nearly $563,000 or 11.0% through the first quarter. The City set an overall budget of $20.6 million for the fiscal year of 2024; based on year-to-date performance, actual collections may exceed this by year-end. King County estimates1 that sales tax revenues will have an annual growth of 3.9% from 2023 actuals. Dating back to 2014, the City has seen consistent growth within the sales tax revenue stream by an average of 7.6% year -over- year. 1 King County, WA. 2024. The Office of Economic and Financial Analysis. https://kingcounty.gov/en/legacy/independent/forecasting. Page 20 of 88 Quarterly Financial Report Through March 2024 6 Page 21 of 88 Quarterly Financial Report Through March 2024 7 The following table breaks out the City’s retail sales taxes by major business sector. Business & Occupation (B&O) Taxes were implemented by the City at the beginning of 2022. These taxes are collected from businesses based on either the value of gross receipts or square footage of occupied warehousing space, subject to certain constraints. While the City receives collections throughout the year, B&O taxes are generally collected on a quarterly basis. By reconciling against the State’s Business Licensing System the City was able to identify taxes collectable from prior periods, significantly contributing to the performance of this revenue. Overall collection throughout the first quarter of the year totaled $3.1 million versus a budgeted amount of $1.8 million. Current 2024 collections outpace 2023 collections through the same period by $1.4 million (83.7%), although recovery of back taxes is anticipated to decrease over time. 2023 2024 Component Group YTD Actual YTD Actual Amount Construction 677,484$ 643,986$ (33,497)$ (4.9)% Manufacturing 138,050 137,690 (361) (0.3)% Transportation & Warehousing 56,265 74,690 18,425 32.7 % Wholesale Trade 396,540 405,833 9,293 2.3 % Automotive 1,178,351 1,169,340 (9,011) (0.8)% Retail Trade 1,735,724 1,751,600 15,877 0.9 % Services 1,373,134 1,397,566 24,432 1.8 % Miscellaneous 61,156 88,702 27,546 45.0 % YTD Total 5,616,703$ 5,669,407$ 52,704$ 0.9 % Comparison of Retail Sales Tax Collections by Group Through March 2024 Change from 2023 Percentage Page 22 of 88 Quarterly Financial Report Through March 2024 8 Utility Taxes consist of an 11.5% tax on the gross revenues of water, sewer, storm drainage and solid waste utilities and a 6.0% tax on electric, natural gas, and telephone utilities operating within the City. Of those utilities taxed at 11.5%, the General Fund receives 9.0% while the remaining 2.5% is dedicated to funding City streets projects. The utilities taxed at 6.0% contribute 5.0% to the General Fund and 1.0% to City streets projects. Overall, utility taxes increased by $466,000 or 13.9% from Q1-2023 and are $653,400 favorable to budget. Roughly 70% of the utility taxes collected by the City are represented by the city interfund utility and electric utility taxes. These two revenue sources accounted for $2.7 million of the collected $3.8 million throughout the first quarter of 2024. Furthermore, telephone taxes have increased from Q1 -2023 by $149,000 and was mainly due to the timing of collections from prior year activity. A portion of the overall favorable variance comes within the Solid Waste (external) category due to the City coll ecting backdated utility taxes from solid waste haulers. The City anticipates this level of collection to slow as more utility taxes become current. The table and graphics below demonstrate the various utility tax revenues and show actual revenues compared to budget. Note that these amounts correspond to only the General Fund portion of revenues, and do not contain those revenues allocated for funding City streets projects. Page 23 of 88 Quarterly Financial Report Through March 2024 9 Note: The large increase from 2019 ($10.9 million) to 2020 ($12.7 million) is attributed to the City’s decision mid-2020 to reallocate 1.0% previously 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 Preservation Fund’s 1.0% 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%. The significant jump from 2022 ($12.8 million) to 2023 ($15.4 million) is largely due to higher service revenue following a rate increase effective in 2023, combined with higher service usage and the collection of B&O taxes on businesses that provide utility services. Page 24 of 88 Quarterly Financial Report Through March 2024 10 An Admission Tax of 5.0% is placed on charges for general admission, season tickets, cover charges, etc. which are generally collected on a quarterly basis. Admission tax revenues of approximately $260,000 collected through March 2024 were significantly higher (177.1%) than Q1-2023, and favorable variance to budget by $145,000. The large increase in collections in March was due to a one-time payment as part of an agreement. Controlling for this non-recurring payment, admission taxes are still reporting a favorable variance to budget by roughly $59,000. Gambling Tax applies to all card games, punch board games, pull tabs, bingo games, raffles and amusement games played within City limits. The majority of gambling tax revenues are collected from amusement games (87.0%) and punch boards and pull tabs (12.9%). Through the first quarter, collections are $75,000 lower than 2023 year-to-date totals and report a $47,000, or 61.6%, unfavorable variance to budget. The primary driver for the unfavorable variance is due to the City receiving no collections for card games. Gambling tax revenues historically have high volatility from year to year: excluding 2021, recent first-quarter revenues average about $72,000 but have been as high as $103,000 (2023) and as low as $35,000 (2018). Page 25 of 88 Quarterly Financial Report Through March 2024 11 Licenses and Permits include business licenses, building permits, plumbing, electric and other licenses and permit fees. Building permit fees (approximately 60%) and business licenses (approximately 15%) typically make up about 75% of the annual budgeted revenue in this category. The annual Business License renewal fee for each business located within the City is $103. Previously, all businesses were on calendar year renewal cycle, resulting in the majority of business license revenue being collected in November and December for existing businesses renewing their licenses. As of September of 2022, businesses are now on an annual renewal cycle that begins on the date the business had originally been granted a license. This methodology has smoothed revenue collection throughout the year, which can also be seen in the chart below as a fairly linear progression of year-to-date collections totaling $159,000, compared to $204,000 in Q1- 2023, a -22.2% decrease. Historically business license collections have been a highly volatile revenue source, though collections in 2024 are projected to be comparable to 2023 totals due to increased discovery through B&O tax collections and use of the State’s Business Licensing System. Page 26 of 88 Quarterly Financial Report Through March 2024 12 Page 27 of 88 Quarterly Financial Report Through March 2024 13 Building Permit revenues collected through March 2024 totaled $234,500. Building permits are approximately $92,000 higher than 2023 collections year-to-date and holds a favorable variance against the budget of $13,750 (6.2%). A large contributing factor for this favorable variance is due to the increased valuation of construction permits on mixed use and subdivision builds, which coincides with the marginal gains noted in plan check fees mentioned later in this report. The number of permits submitted have also increased from 2023 by 29.0% through the first quarter representing an increased workload of construction throughout the City . Page 28 of 88 Quarterly Financial Report Through March 2024 14 Intergovernmental revenues include grants and stimulus monies (direct and indirect federal, state, and local), revenue from the Muckleshoot Indian Tribe (MIT) compact as well as state shared revenues. Collections through Q1-2024 totaled $1.9 million and were $623,000 favorable to budget expectations. Much of this favorable variance is due to the final payment of the 2023 compact request made by Muckleshoot Casino in February 2024. However, the 2024 compact request is still pending MIT approval, and no 2024 revenues have been collected to date. Likewise, the City received reimbursements from an interlocal grant paying prior year expenses of $120k contributing to the favorable variance. Note: 2020 revenue was higher than normal due to the receipt of $3.8 million in federal CARES grant money from the Department of Treasury. 2023 2024 2024 Revenue YTD Actual YTD Budget YTD Actual Amount Amount Federal Grants -$ -$ 1,330$ $ 1,330 $ 1,330 State Grants 2,417 2,600 28,846 26,428 1093.4 % 26,246 1009.4 % Interlocal Grants - 900 196,851 196,851 195,951 21772.3 % Muckleshoot Casino Services 539,508 428,161 791,885 252,377 46.8 %363,724 85.0 % One-Time Allocation (SB 5092)- - - - - State Shared Revenues: Streamlined Sales Tax 200,032 143,996 160,025 (40,006)(20.0)% 16,030 11.1 % Motor Vehicle Fuel Tax 263,010 286,300 256,148 (6,861)(2.6)% (30,152)(10.5)% Criminal Justice - High Crime 70,856 72,274 70,778 (78)(0.1)% (1,496)(2.1)% Criminal Justice - Population 7,760 5,000 8,195 436 5.6 % 3,195 63.9 % Criminal Justice - Special Prog.27,452 20,600 28,858 1,407 5.1 % 8,258 40.1 % Marijuana Excise Tax 58,580 43,881 64,249 5,670 9.7 % 20,369 46.4 % State DUI 108 3,098 2,927 2,819 2599.9 % (171)(5.5)% Fire Insurance Tax - - - - - Liquor Excise 147,070 118,942 149,568 2,498 1.7 % 30,626 25.7 % Liquor Profit 169,631 178,104 167,631 (2,000)(1.2)% (10,473)(5.9)% Total State Shared:944,497 872,194 908,381 (36,117) (3.8)% 36,187 4.1 % YTD Total 1,486,422$ 1,303,854$ 1,927,291$ 440,869$ 29.7 %623,437$ 47.8 % Through March 2024 Intergovernmental Revenues (Grants, Entitlements & Services) 2024 vs. 2023 Actual 2024 vs. Budget % Change % Change Page 29 of 88 Quarterly Financial Report Through March 2024 15 Charges for Services consist of general governmental service charges, public safety charges, development service fees, and culture and recreation fees. Total charges for services collected through March 2024 totaled $2.5 million and were $172,000, or 7.2%, more than expected to date, mainly due to development services (specifically plan check fees) being higher than anticipated. The General Government revenue category primarily includes the interfund assessment for support departments (Finance, Human Resources and Legal). Operating costs for these 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 fees for passport services, reimbursement from cities participating in the South King Housing and Homelessness Partners (SKHHP), as well as transportation projects. The unfavorable variance of $25,000 to budget is due to the timing of SKHHP revenues, which are received on a reimbursement basis. Based on current schedules, most of the budgeted expenses are for projects expected to occur during the second half of the year and will be reimbursed at that time. Public safety revenues mainly 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 2024 totaled $270,000 and saw a $32,000 increase from 2023 first quarter totals This is largely attributable to higher-than-expected DUI emergency response fees collected. The sub-category of law enforcement services is higher than 2023 totals year-to-date by $31,000 due to timing of collections on private security services. However, this sub-category holds an unfavorable variance to budget by $9,000. Development services fee collections consist primarily of plan check fees, facility extension charges, and zoning and subdivision fees. Through Q1-2024, development service fees collected totaled $400,000 and were $123,000 favorable to budget expectations. Major contributors to this variance were plan check fees, where construction documents require review per Section 106.3 of the Construction Administrative Code (+$109,000) and zoning and subdivision (+$29,000). Although FAC linear charges (fees assessed on projects that require extension of public facilities) are higher year-over-year by $60,000 to date, this revenue source holds an unfavorable variance to budget by $8,000. This is an effect of the revenue regressing to the mean after an exceptional three-year period of high collections from 2020 through 2022. By comparison, while first quarter collections in 2024 are lower than the same period in 2022, they are still higher than any other first quarter collections dating back to 2009 . 2023 2024 2024 Revenue YTD Actual YTD Budget YTD Actual Amount Amount General Government 1,091,757$ 1,161,662$ 1,131,944$ $ 40,187 3.7 % $ (29,718)(2.6)% Public Safety 237,189 264,250 269,302 32,113 13.5 %5,052 1.9 % Development Services 214,228 275,700 398,853 184,624 86.2 %123,153 44.7 % Culture & Recreation 796,244 674,557 748,250 (47,993)(6.0)%73,693 10.9 % YTD Total 2,339,418$ 2,376,169$ 2,548,349$ 208,930$ 8.9 % $ 172,179 7.2 % Through March 2024 Charges for Services by Type 2024 vs. 2023 Actual 2024 vs. Budget Percentage Percentage Page 30 of 88 Quarterly Financial Report Through March 2024 16 Most culture and recreation revenues are derived from green 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, this category of revenues outperformed budget expectations by $74,000, or 10.9%. Nearly 80% of the year-to-date revenues have come from the Auburn Golf Course and recreation classes. Even with the favorable variances, greens fee revenues have decreased $22,350 or -10.3% from the same period last year and are unfavorable to budget by $175,500 year-to-date. The City projects that green fees collections will steadily rise with the upcoming spring and summer seasons. Recreation class revenues have generally remained consistent from prior year-to-date totals and reported $313,000 in collections. Ticket sales for performances held at local school venues (previously held at the Auburn Avenue Theater) have decreased by $13,750 or 23.0%. Since 2021, culture and recreation revenues have increased by roughly 18% each year, and the City anticipates the same in 2024 with upcoming favorable weather for the golf course and recreational classes. Page 31 of 88 Quarterly Financial Report Through March 2024 17 Fines & Penalties include civil penalties (such as code compliance fines), parking and traffic infraction penalties, criminal fines (including criminal traffic, criminal non -traffic, and other criminal offenses) as well as non-court fines such as false alarm fines. The table below shows a detailed breakdown of the different types of fines and penalties collected by the City. Total revenues collected through March 202 4 totaled $1.1 million as compared to a budget of $102,000 and were 949.6% above budget expectations. This is primarily due to collections of the photo enforcement program implemented in 2023, which are classified as parking infractions. Furthermore, the City received an influx of non -court fines & penalties in January and February due to back-pay of B&O taxes. The City contracts with the King County Court to operate its municipal court services . The number of hearings, judgments, and collections activity began decreasing in 2019 and has continued to decline since that time. Although the graph below shows a large spike in revenue in 2023 and strong performance in 2024 , this is almost entirely due to photo enforcement and B&O-related collections. Excluding these sources, the remaining court -related collections have declined to $67,000, approximately one-third of their first quarter average for the period of 2015 -2019 prior to contracting with the King County Court . 2023 2024 2024 Month YTD Actual YTD Budget YTD Actual Amount Amount Civil Penalties 210$ 529$ 370$ $ 160 76.2 % $ (159)(30.0)% Civil Infraction Penalties 37,218 32,300 41,298 4,080 11.0 %8,998 27.9 % Photo Enforcement 1,067 1,500 157 (910)(85.3)%(1,343)N/A % Parking Infractions 20,004 183,377 866,789 846,786 4,233.1 %683,413 372.7 % Criminal Traffic Misdemeanor 9,232 14,800 7,641 (1,591)(17.2)%(7,159)(48.4)% Criminal Non-Traffic Fines 15,226 12,600 14,332 (894)(5.9)%1,732 13.7 % Criminal Costs 4,226 10,300 3,377 (849)(20.1)%(6,923)(67.2)% Non-Court Fines & Penalties 16,635 1,700 135,853 119,218 716.7 %134,153 7,891.4 % YTD Total 103,818$ 257,105$ 1,069,818$ $ 966,000 930.5 % $ 812,713 316.1 % Through March 2024 Fines & Penalties by Type 2024 vs. 2023 Actual 2024 vs. Budget Percentage Percentage Page 32 of 88 Quarterly Financial Report Through March 2024 18 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 most significant miscellaneous revenue categories are listed in the table below. Revenues collected year-to-date 2024 in this category totaled $915,600 and were $469,000 or 105.0% favorable to budget. Of the favorable variance to budget, 78.8% was comprised of interest and investment collections, far exceeding budget expectations due to higher -than- expected interest rates and the timing of investment maturities. The City has multiple investments maturing during the second half of the year which will impact revenue collections during that timeframe also. The “Other Miscellaneous Revenue” sub -category reported $3,300 more than the same timeframe last year and was favorable to the year-to-date budget by $123,000. This category includes $137,700 in revenue related to a national opioid settlement distribution program. The rents and leases category includes payments for facility rentals , golf cart rentals, and restaurant lease at the golf course . Rents and leases were to par with year-to-date budget expectations, with facility revenues exceeding expectations by about $70,000 . Golf carts and other rentals were unfavorable to expectations, resulting in general alignment of budget to actual for the category. 2023 2024 2024 Month YTD Actual YTD Budget YTD Actual Amount Amount Interest & Investments 248,841$ 78,750$ 427,829$ 178,988$ 71.9 %349,079$ 443.3 % Rents & Leases 300,463 291,200 289,213 (11,251)(3.7)%(1,987)(0.7)% Contributions & Donations 434 3,312 2,352 1,918 441.9 %(960)(29.0)% Other Miscellaneous Revenue 192,895 73,403 196,211 3,316 1.7 %122,808 167.3 % YTD Total 742,633$ 446,665$ 915,604$ 172,971$ 23.3 %468,939$ 105.0 % Miscellaneous Revenues by Type Through March 2024 2024 vs. 2023 Actual 2024 vs. Budget Percentage Percentage Page 33 of 88 Quarterly Financial Report Through March 2024 19 OTHER FUNDS Real Estate Excise Tax (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. REET revenues collected year-to-date in 2024 total $1.1 million which is $632,000 or 56.8% favorable to budget expectations. According to King County assessed valuations of property taxes, the City has increased in property value by 2.3%. Accompanied with lower interest rates currently, the current climate for real estate sales are favorable for citizens within the State of Washington. Page 34 of 88 Quarterly Financial Report Through March 2024 20 As shown in the table below, REET collections were higher in both January and February than their counterparts last year, while March experienced a decrease . In context, 2023 saw the lowest first-quarter collection of REET revenue since 2018. Lower REET collections in 2023 represent a cooling market after a period of increasing interest rates and historic inflation which saw revenue peak in 2021 and decline each year since . 2023 2024 2024 Month YTD Actual YTD Budget YTD Actual Amount Amount 1 231,316$ 118,562$ 346,387$ 115,071$ 49.7 %227,826$ 65.8 % 2 229,810 146,777 549,438 319,628 139.1 %402,660 73.3 % 3 335,109 214,549 215,927 (119,182)(35.6) %1,378 0.6 % 4 470,605 194,952 5 100,896 163,802 6 288,285 176,375 7 396,981 197,738 8 319,792 207,764 9 326,357 258,962 10 355,405 177,189 11 264,919 162,145 12 213,893 209,484 YTD Total 796,235$ 479,888$ 1,111,752$ 315,517$ 39.6%631,864$ 56.8% Real Estate Excise Tax Revenues Through March 2024 2024 vs. 2023 Actual 2024 vs. Budget Percentage Percentage Page 35 of 88 Quarterly Financial Report Through March 2024 21 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. The City’s plan for using ARPA funding is to mitigate the cost of providing public safety services throughout the City. Since receiving the funding, the City has been able to offset all $14.8 million in public safety expenditures, as shown in the table below and reported to the Department of the Treasury. As a result of the cost mitigation provided by the ARPA funding, the City has been able to allocate General Fund funding toward projects approved by the Council ad hoc committee. As of March 31, 2024, the City has been able to spend $166,661 year-to-date and $4.6 million since 2021 on the following projects: The Minor Improvements to Qualifying Neighborhood Parks project will be able to make improvements to numerous parks in our low-income census tracts are in need of modernization that will assist in getting these community members outdoors and experiencing a better quality of life. To date this project has spent $99,332 on Forest Villa Tot Lot replacing the perimeter fencing and installing a new playground. Total ARPA Funding Received 14,751,231 ARPA Funding Used to Mitigate Public Safety Costs 14,751,231 ARPA Funding Remaining - ARPA FUNDING STATUS 2024 Lifetime Spend Title Budget Q1 Spend (includes this quarter)Remaining Completed Projects 1,630,000 - 1,853,949 - Body Cameras 586,400 - 550,325 36,075 Vaccination Incentive Program 47,500 - 34,980 12,520 Neighborhood Street Light Program 500,000 12,220 91,821 408,179 Human Services Grants Includes Admin 1,000,000 - 441,041 558,959 Dykstra Foot Bridge 400,000 - 10,357 389,643 Minor Improvements to Qualifying Neighborhood Parks 100,000 29,158 99,332 668 Limited Term Employee (LTE): Grants Coordinator 420,000 - 118,729 301,271 Paving Gravel Roads 636,866 - 23,539 613,327 Translation Services 75,000 - 1,685 73,315 Auburn Way South Median Landscape Replanting/Irrigation 50,000 - 40,187 9,814 Auburn Way South Roundabout 150,000 - 1,089 148,911 Emergency Housing Voucher Program 2,000,000 72,330 344,755 1,655,245 Encampment Cleanup 500,000 3,202 448,481 51,519 Downtown Sidewalk Replacement on Main Street and B Street Plaza Surface Replacement 1,343,266 13,593 59,360 1,283,906 Community Violence Intervention Programs (Drone, SPIDR Tech)313,600 - 248,227 65,373 Arts Culture Center Renovations 100,000 - - 100,000 Auburn Ave Theater Demolition 300,000 15,745 15,784 284,216 Signing Bonuses for Police Lateral Hires 200,000 10,881 153,294 46,706 Other Projects (not started)3,980,000 - - 3,974,704 Total:14,751,231 166,661 4,555,350 10,195,935 Page 36 of 88 Quarterly Financial Report Through March 2024 22 The Encampment Cleanup project provides two service contracts that began in 2023; one contract provides continued cleanup of garbage and debris related to encampments and other illegal dumping on City-owned properties and rights of way (ROW), while the secondary contract focuses specifically on encampment trash cleanup. To date, the project has spent $44 8,481 and cleaned up 320 tons of litter and debris. Beginning in 2023, the Emergency Housing Voucher Program is budgeted at $2 million over the life of the program . This program assists 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 . Life-to-date project spend is $344,755, with $72,330 occurring in Q1-2024. Beginning in 2024, Auburn Avenue Theater Demolition project is budgeted at $300,000. The project will demolish the existing Auburn Avenue Theater building, provide support to the shared wall with the adjacent building, and disconnect existing utilities. The project design is complete, and the design team is finalizing the construction plans and other contract documents for the advertisement in June. Total project estimated costs are $251,000 and total project cost through Q1-2024 totals $15,784. Enterprise Funds Utility activities are divided between operating funds and capital sub -funds. Operating funds house all the operating costs along with debt service and financing obligations. Capital funds show costs associated with capital acquisition and construction. Bo th the operating and capital funds have a working capital balance, which is equivalent to current assets minus current liabilities. This approach isolates those funds available for capital and cash flow needs for daily operations and provides project manag ers information on the availability of working capital for current and planned projects. Through March 2024, the Water Utility had operating income of $1.1 million (operating revenues less operating expenditures), approximately $157,000 above the same period last year. A majority of this increase is due to higher revenues from water sales due to increased rates and consumption; charges for service revenues were $3.9 million in Q1-2024 compared to $3.5 million in Q1-2023. In addition to increased water sales, the fund also saw higher expenses in personnel costs (+$15,000), supplies (+$24,000) and other service charges, including utility taxes (+$117,000). Q1-2024 activity is consistent with the seasonality of this revenue stream, where revenues remain relatively low early in the year and then increase in Q2 and Q3 as the weather grows warmer. In total, operating income for this fund was $588,000 favorable to budget projections. Operating revenues were $288,000 higher than expected through Q1-2024, while operating expenditures had a $300,000 favorable variance to budget, driven by lower than expected utility expenses during the quarter (-$75,600), professional service charges (-$56,200) and timing differences in monthly excise tax payments (-$99,000). Billable water consumption through Q1 -2024 totaled 618,000 ccf (hundred cubic feet), approximately 28,000 ccf or 5.0% higher than consumption volume through Q1 -2023. Consumption increased across every customer class except schools when compared to Q1 - 2023, with the largest increases by both volume and revenue amount s occurring in manufacturing, commercial, and single -family accounts. Page 37 of 88 Quarterly Financial Report Through March 2024 23 Through Q1-2024, the Sewer Utility finished with operating income of $1.2 million as compared to $989,000 through the same period last year. Operating revenues were up $190,000 or 7.8% from the same period last year due to stronger performance in charges for City sewer service and higher interest earnings. Interest earnings increased from $127,000 through Q1 -2023 to $240,000 through Q1-2024. Operating expenses increased slightly (+$68,000) from the prior year, due primarily to increased personnel costs (+$61,000), as well as other service charges, including utility tax expense (+$13,000). Through Q1-2024, this fund performed better than budget expectations with a $548,000 favorable variance in operating revenues, both in charges for service (+$318,000) and interest earnings (+$229,000). Additionally, operating expenditures had a $724,000 favorable variance compared to budget expectations, driven primarily by the elimination of utility tax charges on pass-through revenues for King County Metro Sewer service . The Stormwater Utility had operating income of $832,000 through Q1-2024 compared with $920,000 in the same period last year. This is consistent with the historical activity of this fund; as most Stormwater service charges are based on a flat rate, there are not typically seasonal fluctuations in Stormwater revenue. Operating expenses for this fund were higher through Q1- 2024 than through Q1-2023, driven by increased personnel costs (+$109,000) and other service charges (+$69,000). This fund also outperformed budget expectations, with a $636,000 favorable to budget variance in operating income, driven by higher than anticipated revenues (+$428,000) and lower operating expenditures (-$208,000) through Q1-2024. Page 38 of 88 Quarterly Financial Report Through March 2024 24 The Solid Waste Utility finished Q1-2024 with operating income of $5.0 million, which was the result of a timing difference between the City’s monthly payments to its solid waste vendor and the collection of revenues for services performed during the first quarter. We expect a d irect correlation between solid waste service charges and payments for service due to the contract with the City’s solid waste provider; however, this timing difference in payments lowered operating expenses in Q1-2024 compared to the prior year. Internal Service Funds Operating expenditures within the Insurance Fund represent the premium cost pool that will be allocated monthly to other City funds over the course of the year. As a result, the expenditure balance gradually diminishes each month throughout the year. No significant variances are reported in the Workers’ Compensation, Facilities, Innovation & Technology, or Equipment Rental Funds. Contact Information This report is prepared by the Finance Department. Additional financial information can also be viewed at our website: http://www.auburnwa.gov/. For any questions about this report please contact Jamie Thomas at jdthomas@auburnwa.gov. Page 39 of 88 City of Auburn1st Quarter 2024 Financial ReportCITY COUNCIL STUDY SESSIONJUNE 24, 2024Page 40 of 88 General Fund Revenue OverviewSummary•Collected 26% more revenue YTD compared to budget and 30% more than YTD last year•Underspent the YTD budgeted expenditures by 3% and have spent 6% more compared to YTD last yearRevenue 2023 YTD Actual2024 YTD Budget2024 YTD ActualVariance to Budget Favorable (Unfavorable) %Variance to 2023 Favorable (Unfavorable) %Property Tax 1,103,605$ 1,140,900$ 1,050,494$ (90,406)$ (53,111)$ Sales Tax 5,616,703 5,106,000 5,669,407 563,407 52,704 Utility Tax 3,218,798 3,121,115 3,733,785 612,670 514,987 B&O Tax* 1,688,685 1,757,436 3,101,343 1,343,907 1,412,658 Other Tax 1,253,044 1,153,922 1,438,288 284,366 185,244 Licenses and Permits 667,524 665,600 646,587 (19,013) (20,937) Intergovernmental 1,486,422 1,303,854 1,927,291 623,437 440,869 Charges for Services 2,339,418 2,376,169 2,548,349 172,180 208,931 Other 936,900 710,019 2,014,717 1,304,698 1,077,817 Transfers In 2,015,000 3,550,764 4,270,722 719,958 2,255,722 Total Revenue 20,326,099$ 20,885,779$ 26,400,983$ 5,515,204$ 26% 6,074,884$ 30%Total Expenditures 21,335,400$ 23,432,840$ 22,633,612$ 799,228$ 3% (1,298,212)$ -6%Page 41 of 88 Tax Revenue2024 budgeted taxes account for $70.96 million, or 67% of the General Fund budgetProperty Tax (34% of taxes)◦$24.4 million 2024 budget ◦Collected 100% at year-endRetail Sales and Use Tax (29% of taxes)◦$20.6 million 2024 budget ◦$53,000 (1%) underprior YTD actual◦$563,000 (11%) over YTD budgetPage 42 of 88 Tax RevenuePage 43 of 88 Tax RevenueUtility Tax (20% of taxes)◦$14.1 million 2024 budget◦Water, Sewer, Storm, Solid Waste Utility Tax rate 9% ($6.8 million of total budget)◦Electric, Natural Gas, Cable, and Telephone Utility Tax rate 5% ($7.6 million of total budget)◦$613,000 (20%) over budget◦Higher than expected water, sewer, storm collections◦$515,000 (16%) over prior year◦Higher than expected water, sewer, storm collectionsPage 44 of 88 Tax RevenueBusiness and Occupation Tax (B&O) (10% of total taxes)◦$7.0 million 2024 budget ◦$3.1 million collected YTD◦$2.04 million in gross receipts tax (66%)◦$1.01 million in square foot tax (33%)◦Includes Q4 2023 and some 2023 Annual Filings◦$1.3 million (76%) over YTD budgetOther Taxes (7% of total taxes)◦$4.7 million 2024 budget◦Criminal justice sales tax, admissions tax, gambling tax, leasehold excise tax, franchise fees◦$172k (7%) over2024 YTD budget◦$209k (9%) over2023 YTD collections◦Both variances are mostly due to higher sales tax collection and admission tax collection (delinquent taxes received)Page 45 of 88 Licenses and PermitsAccounts for 2% of the total General Fund Resources $2.6 million budgeted in 2024◦Half of this ($1.0 million building permitrevenue)$19,000 (3%) underbudget$21,000 (3%) underprior year◦Both variances are attributed to lower collections for various permit fees◦Building permit revenue is right on track with budget expectationsPage 46 of 88 IntergovernmentalRevenues 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$623,000 (48%) over2024 YTD budget◦Timing of contribution payment from the MIT compact$441,000 (30%) over2023 YTD collections◦Timing of contribution payment from the MIT compactPage 47 of 88 Charges for ServicesGeneral Government -$30,000 belowbudget (2.6%)◦Timing of SKHHP Payments – Reimbursement basisPublic Safety - $5,000 above budget (2%)Development Services - $123,000 above budget (44%)◦Greater than anticipated plan check fees, facility extension charges and zoning and subdivision feesCulture and Recreation - $74,000 above budget (11%)◦Green fees and pro shop sales are slightly higher than budget, but below prior year collections by 10%Page 48 of 88 General Fund Expenditures by DepartmentDepartment$%Council, Mayor, Admin 668,906 692,900 702,632 (9,732) -1%Diversity, Equity and Inclusion 82,631 188,100 175,123 12,977 7%Municipal Court 252,957 239,686 265,572 (25,886) -11%Community Development 1,589,461 1,501,600 1,597,614 (96,014) -6%Human Services 437,099 774,900 567,118 207,782 27%Public Works 1,035,836 1,078,500 1,244,139 (165,639) -15%Streets (M&O) 938,310 1,065,300 1,053,765 11,535 1%Parks, Art, and Recreation 3,427,650 3,490,000 3,660,307 (170,307) -5%Police 8,495,621 9,303,700 8,679,621 624,079 7%SCORE 1,173,547 1,425,000 1,216,494 208,506 15%Internal Services (HR, Finance, Legal, Nondepartment) 3,197,381 3,373,154 3,471,228 (98,074) -3%Total 21,299,399$ 23,132,840$ 22,633,613$ 499,227$ 2%Budget vs Actual2024 YTD Actual2024 YTD Budget2023 YTD ActualPage 49 of 88 ARPA UpdatePage 50 of 88 Non-General Fund Highlights – Capital Real Estate Excise Tax (REET)YTD Collections: $1.1 million$632,000 overprior year$315,000 over YTD budgetPage 51 of 88 QuestionsPage 52 of 88 AGENDA BILL APPROVAL FORM Agenda Subject: Resolution No. 5773 (Krum) (10 Minutes) Date: June 14, 2024 Department: Community Development Attachments: Res olution No. 5773 SKHHP Res olution 2024-02 Presentation Budget Impact: Current Budget: $0 Proposed Revision: $0 Revised Budget: $0 Administrativ e Recommendation: For discussion only. Background for Motion: Background Summary: The South King Housing and Homelessness Partners (SKHHP) was established through an Interlocal Agreement between nine South King County cities and King County to work together and share resources to increase options for South King County residents to access affordable housing and preserve existing affordable housing. SKHHP currently has 12 member jurisdictions. Consistent with the SKHHP Interlocal Agreement, the SKHHP 2025 Work Plan and Budget must be adopted by the SKHHP Executive Board and approved by each member jurisdiction’s legislative body. Every year, an annual Work Plan and Budget is developed in collaboration with the SKHHP Executive Board, Advisory Board, and staff work group to guide the work of SKHHP staff in the coming year. Pursuant to the SKHHP Interlocal Agreement, each participating jurisdiction must approve SKHHP’s annual Work Plan and Budget. The 2025 Executive Board recommended Work Plan was developed through surveys to the Executive and Advisory Boards on their priorities in February and an interactive in-person discussion with the Executive Board in March. The draft 2025 Work Plan and Budget was adopted on April 19, 2024 at the Executive Board’s regularly scheduled meeting. The 2025 Work Plan includes four goals with corresponding action items. Each action item is prioritized as higher, medium, or lower priority. Indicators are included to measure progress on the goals. The four goals, which are the same as 2024’s goal, include the following: 1. Fund the expansion and preservation of affordable housing 2. Develop policies that expand and preserve affordable housing 3. Serve as an advocate for South King County 4. Manage operations and administration Rev iewed by Council Committees: Page 53 of 88 Councilmember:Yolanda Trout-Manuel Staff:Jason Krum Meeting Date:June 24, 2024 Item Number: Page 54 of 88 Resolution No. 5773 June 24, 2024 Page 1 of 2 RESOLUTION NO. 5773 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AUBURN, WASHINGTON, APPROVING THE SOUTH KING HOUSING AND HOMELESSNESS PARTNERS 2025 WORK PLAN AND 2025 OPERATING BUDGET WHEREAS, on February 19, 2019 the City of Auburn enacted an Interlocal Agreement (ILA) with eight other South King County cities and King County to form the South King Housing and Homelessness Partners (SKHHP); and WHEREAS, pursuant to the Interlocal Agreement, each participating jurisdiction must approve an annual work plan each year to guide the work of SKHHP staff; and WHEREAS, pursuant to the Interlocal Agreement, each participating jurisdiction must approve SKHHP’s annual budget that includes an itemization of all categories of budgeted expenses and itemization of each Party’s contribution, including in-kind services; and WHEREAS, the purpose of the annual work plan and budget is to provide management and budget guidance, and implement the overarching SKHHP mission to work together and share resources to increase the available options for South King County residents to access affordable housing and to preserve the existing affordable housing stock; and WHEREAS, the 2025 work plan includes four goals with corresponding action items that further SKHHP’s mission; and WHEREAS, on April 19, 2024, the SKHHP Executive Board adopted Resolution 2024-02 enacting the 2025 work plan and budget upon approval by the legislative body of each participating party. Page 55 of 88 Resolution No. 5773 June 24, 2024 Page 2 of 2 NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF AUBURN, WASHINGTON, RESOLVES as follows: Section 1. City Council adopts the SKHHP 2025 Work Plan as shown in Attachment A. Section 2. City Council adopts the SKHHP 2025 operating budget as shown in Attachment A. Section 3. The City of Auburn will transmit its annual contribution to SKHHP on an annual basis during the first quarter of the calendar year. Section 4. This Resolution will take effect and be in full force upon passage and signatures. Dated and Signed this ____ day of_____, 2024. CITY OF AUBURN NANCY BACKUS, MAYOR ATTEST: Shawn Campbell, MMC, City Clerk APPROVED AS TO FORM: Douglas P Ruth, Acting City Attorney Page 56 of 88 ------------------------------- Resolution No. 2024-02 April 19, 2024 Page 1 of 7 RESOLUTION NO. 2024-02 A RESOLUTION OF THE EXECUTIVE BOARD OF THE SOUTH KING HOUSING AND HOMELESSNESS PARTNERS (SKHHP), ADOPTING THE 2025 SKHHP WORK PLAN AND OPERATING BUDGET WHEREAS, pursuant to the Interlocal Agreement, the SKHHP Executive Board approves an annual work plan and budget each year to guide the work of SKHHP staff; and WHEREAS, pursuant to the Interlocal Agreement, the annual budget includes an itemization of all categories of budgeted expenses and itemization of each Party’s contribution, including in-kind services; and WHEREAS, upon adoption by the Executive Board, the annual work plan and budget will be transmitted to each participating jurisdiction for approval by their legislative body; and WHEREAS, the budget will not become effective until approved by the legislative body of each jurisdiction and adopted by the SKHHP Executive Board; and WHEREAS, if a party does not approve the work plan or budget in a timely manner, the Executive Board may adopt the budget and work plan with a two-thirds majority vote; and WHEREAS, the purpose of the annual work plan and budget is to provide management and budget guidance, and implement the overarching SKHHP mission to work together and share resources to increase the available options for South King County residents to access affordable housing and to preserve the existing affordable housing stock; and WHEREAS, the 2025 work plan includes four goals with corresponding action items that further SKHHP’s mission. NOW, THEREFORE, THE EXECUTIVE BOARD RESOLVES as follows: Section 1. The Executive Board adopts the 2025 SKHHP Work Plan in Attachment A. Section 2. The Executive Board adopts the 2025 SKHHP Operating Budget in Attachment B. Section 3. Each party’s contribution to SKHHP’s operating budget will be transmitted on an annual basis during the first quarter of the calendar year. Section 4. This Resolution will take effect and be in full force upon approval by the legislative body of each participating jurisdiction. Dated and signed this _____ day of _________________, 2024. _________________________ NANCY BACKUS, CHAIR, SOUTH KING HOUSING AND HOMELESSNESS PARTNERS Page 57 of 88 ------------------------------- Resolution No. 2024-02 April 19, 2024 Page 2 of 7 RESOLUTION 2024-02 – ATTACHMENT A SKHHP 2025 WORK PLAN PURPOSE Establish a 2025 SKHHP work plan and budget that is guided by Executive Board priorities, is consistent with the SKHHP Interlocal Agreement, and furthers SKHHP’s mission. BACKGROUND Established by an interlocal agreement, SKHHP jurisdictions work together and share resources to increase options for South King County residents to access affordable housing and preserve existing affordable housing. The 2025 SKHHP work plan builds on work done in previous years and was developed in collaboration with the Executive Board, Advisory Board, and staff work group. The work plan is organized into four goals with corresponding action items. Each action is identified by priority as follows: • Higher – Identified as higher priority by Executive Board or is necessary to carry out the Interlocal Agreements • Medium – Identified as mid-level priority • Lower – Identified as lower priority Quarterly budget and progress reports on the status of the work plan elements will be submitted to the SKHHP Executive Board and the legislative body of each member jurisdiction as follows: Quarter 1: May | Quarter 2: August | Quarter 3: November | Quarter 4: February In accordance with the Interlocal Agreement, the 2025 SKHHP work plan and budget will be approved by the SKHHP Executive Board and the legislative body of each member jurisdiction. SKHHP MISSION South King County jurisdictions working together and sharing resources to create a coordinated, comprehensive, and equitable approach to increasing housing stability, reducing homelessness, and producing and preserving quality affordable housing in South King County. GOALS & ACTIONS Goal Actions 1. Fund the expansion and preservation of affordable housing. 1 through 5 2. Develop policies to expand and preserve affordable housing. 6 through 10 3. Serve as an advocate for South King County. 11 through 15 4. Manage operations and administration. 16 through 20 Page 58 of 88 ------------------------------- Resolution No. 2024-02 April 19, 2024 Page 3 of 7 Goal 1 Fund the expansion and preservation of affordable housing. Actions Priority of Actions ••• = Higher •• = Medium • = Lower 1. Pool resources from member cities for the Housing Capital Fund, including SHB 1406 funds, HB 1590 funds, and general funds. ••• 2. Develop and execute contract documents and covenants for projects ready to move forward (Burien Family Housing – 2022; Kent Multicultural Village – 2023; Skyway Affordable Housing and Early Learning Center – 2023). ••• 3. Facilitate approval from participating Councils of recommended projects from 2024 Housing Capital Fund funding round and preparing contract documents and covenants if any projects are ready to move forward. ••• 4. Manage 2025 Housing Capital Fund funding round including adopting annual guidelines, updating application materials, soliciting proposals, and facilitating project selection. ••• 5. Encourage investment in South King County by private investors, lenders, and philanthropies. •• Indicators o Number of housing units or number of projects funded with financial support from SKHHP o Number of housing units preserved with financial support from SKHHP o Total dollar amount pooled by member jurisdictions for Housing Capital Fund o Total dollar amount from new sources of revenue added to the Housing Capital Fund o Geographic diversity of applications received for annual Housing Capital Fund funding round Page 59 of 88 ------------------------------- Resolution No. 2024-02 April 19, 2024 Page 4 of 7 Goal 2 Develop policies to expand and preserve affordable housing. Actions Priority of Actions ••• = Higher •• = Medium • = Lower 6. Facilitate implementation of any subregional housing preservation strategies. ••• 7. Facilitate technical assistance and updates to the Affordable Housing Inventory Dashboard. ••• 8. Build relationships with developers to learn from their perspective the ways to encourage housing development, especially affordable housing. •• 9. Convene land use planners to increase coordination and collaboration on housing policy and planning. • 10. Develop SKHHP Executive Board briefings on key housing and homelessness topics, especially as they relate to the goals of the work plan. • Indicators o Number of subregional housing preservation strategies facilitated or supported o Successful update of data to the Affordable Housing Inventory Dashboard o Number of relationships built with developers o Number of Executive Board briefings on key housing and homelessness topics Page 60 of 88 ------------------------------- Resolution No. 2024-02 April 19, 2024 Page 5 of 7 Goal 3 Serve as an advocate for South King County. Actions Priority of Actions ••• = Higher •• = Medium • = Lower 11. Coordinate with the Advisory Board in collaboration with housing organizations and stakeholder groups to provide education and engagement opportunities for elected officials and community members. •• 12. Work collaboratively with public funders at the state and local levels to promote shared affordable housing goals and equitable geographic distribution of resources. •• 13. Represent SKHHP at relevant local and regional meetings and forums that help advance SKHHP’s mission and provide a voice for increasing access to safe, healthy, and affordable housing in South King County. • 14. Meet with legislators as opportunities arise to inform about SKHHP’s mission, goals, and the Housing Capital Fund. • 15. Connect affordable housing developers with property owners who intend to sell naturally occurring affordable housing in coordination with member cities. • Indicators o Number of events or engagement opportunities Advisory Board members organize or support o Number of meetings, forums, or events attended that advance SKHHP's mission o Number of meetings with legislators that promote SKHHP and South King County o Number of affordable housing developers connected with property owners intending to sell naturally occurring affordable housing Page 61 of 88 ------------------------------- Resolution No. 2024-02 April 19, 2024 Page 6 of 7 Goal 4 Manage operations and administration. Actions Priority of Actions ••• = Higher •• = Medium • = Lower 16. Develop annual work plan and budget. ••• 17. Generate and distribute quarterly progress reports to SKHHP Executive Board and member jurisdictions. ••• 18. Work with administering agency to maintain records and produce regular financial reports for the SKHHP Housing Capital Fund and SKHHP Operating Account. ••• 19. Organize and host monthly Executive and Advisory Board public meetings. ••• 20. Maintain and update the SKHHP website. •• Indicators o Work plan and budget adopted o Quarterly progress reports prepared and presented to Executive Board o Financial reports and public records maintained o Monthly Executive and Advisory Board meetings held o Website maintained Page 62 of 88 ------------------------------- Resolution No. 2024-02 April 19, 2024 Page 7 of 7 RESOLUTION 2024-02 – ATTACHMENT B 2025 SKHHP Operating Budget Estimated beginning fund balance - January 1, 2025 $ 344,131 Estimated ending fund balance - December 31, 2025 $ 285,588 REVENUES Auburn $ 45,474 Burien $ 26,236 Covington $ 13,118 Des Moines $ 13,118 Federal Way $ 59,466 Kent $ 59,466 Maple Valley $ 13,118 Normandy Park $ 6,996 Renton $ 59,466 SeaTac $ 13,118 Tukwila $ 13,118 King County* $ 59,466 Additional King County* $ 15,534 Office space (in-kind donation) $ 12,000 TOTAL REVENUES $ 409,694 Spend down balance $ 58,543 TOTAL $ 468,237 EXPENSES Salaries and benefits $ 320,611 Interfund IT $ 35,000 Advisory Board compensation $ 14,400 Office space (in-kind donation) $ 12,000 Professional services/Misc. $ 37,500 Travel $ 5,250 Supplies $ 2,000 Subtotal $ 426,761 Administering agency - 10% admin fee** $ 41,476 TOTAL $ 468,237 *King County contribution based on the population of unincorporated King County is shown as increasing at the same rate as other partner jurisdictions and the additional allocation decreasing to maintain a total contribution of $75,000 per year. **10% administrative fee is calculated as a percentage of operating costs which excludes in-kind donations and carry-forwards. Page 63 of 88 South King Housing and Homelessness Partners (SKHHP) 2025 Work Plan and BudgetJeff TateCity of AuburnJune 24, 2024Page 64 of 88 About SKHHP22019: SKHHP was formed via an Interlocal Agreement Twelve member jurisdictions include:AuburnFederal WayRentonBurienKentSeaTac Covington Maple Valley Tukwila Des Moines Normandy Park King CountyMission: • South King County jurisdictions working together and sh aring resources to create a coordinated, comprehensive, and equitable approach to i ncreasing housing stability, reducing homelessness, and producing and preserving quality afford able housing in South King County.Interlocal agreement requires City Council adoption of annual work plan and budget Page 65 of 88 2025 Work Plan Development ProcessExecutive Board SurveyAdvisory Board SurveyDraft review by Staff Work Group Executive Board reviews draft and provides feedbackFinal draft reviewed by Advisory Board and Staff Work GroupFinal draft reviewed and adopted at April 19 Executive Board meetingCouncil adoption3You are here!Page 66 of 88 2025 Work Plan Goals41. Fund the expansion and preservation of affordable housing.2. Develop policies to expand and preserve affordable housing. 3. Serve as an advocate for South King County.4. Manage operations and administration.Page 67 of 88 2025 Operating Budget5Total operating budget: $468,23768% funds salary and benefits (2 FTEs)Revenue:Operating revenues come from member jurisdiction annual contributions and based on population tiersExecutive Board adopted policy in July 202115% increase in member contributions each year through 2026Expenses:Professional services/Misc. increasing to accommodate the lega l assistance needed for the development of housing contracts and third-party review of applicati ons Incorporates professional development from 2024 budgetContinuing to spend down cost savings from first two years to balance additional contribution increasesInterest earnings incorporated into operating fund balancePage 68 of 88 Operating Contributions by Population62026 Contribution2025 Contribution2024 Contribution2023 ContributionMember Jurisdiction Population Tier$8,045 $6,996 $6,084 $5,290 <10,000$15,085 $13,118 $11,407 $9,919 10,001 – 35,000$30,172 $26,236 $22,814 $19,838 35,001 – 65,000$52,295 $45,474 $39,543 $34,385 65,000 – 100,000$68,386 $59,466 $51,710 $44,965 100,000+Page 69 of 88 Population by City and Year7Population (OFM 2024 estimate)Population (OFM 2023 estimate)Population (OFM 2022 estimate)Population (OFM 2021 estimate)SKHHP Member JurisdictionsData not published until June 28, 2024Total: 88,820KC: 78,760Total: 88,750KC: 78,690Total: 88,050 KC: 78,040Auburn52,56052,49053,290Burien21,60021,20020,890Covington33,26033,16032,820Des Moines102,000101,80099,590Federal Way139,100137,900132,400Kent29,25028,920--Maple Valley6,8406,7906,740Normandy Park107,900107,500106,500Renton22,78022,62021,970Tukwila249,060248,160--King County (unincorporated)Page 70 of 88 Projected Budget 2024-20268202620252024$ 285,588 $ 344,131 $ 394,534 Estimated beginning fund balance REVENUES$ 52,295 $ 45,474 $ 39,543 Auburn$ 30,171 $ 26,236 $ 22,814 Burien$ 15,086 $ 13,118 $ 11,407 Covington$ 15,086 $ 13,118 $ 11,407 Des Moines$ 68,386 $ 59,466 $ 51,710 Federal Way$ 68,386 $ 59,466 $ 51,710 Kent$ 15,086 $ 13,118 $ 11,407 Maple Valley$ 8,045 $ 6,996 $ 6,084 Normandy Park$ 68,386 $ 59,466 $ 51,710 Renton$ 15,086 $ 13,118 $ 10,456 SeaTac$ 15,086 $ 13,118 $ 11,407 Tukwila$ 68,386 $ 59,466 $ 51,710 King County$ 6,614 $ 15,534 $ 23,290 Additional King County$ 2,100Interest earnings$ 12,000 $ 12,000 $ 12,000 Office space (in-kind donation)$ 458,098 $ 409,694 $ 368,755 TOTAL REVENUES$ 40,285$ 58,543 $ 50,403 Spend down balance$ 498,383$ 468,237 $ 419,158 TOTAL EXPENSES Page 71 of 88 Thank you!Page 72 of 88 AGENDA BILL APPROVAL FORM Agenda Subject: 2025-2029 CDBG Consolidated Plan Update (Krum) (30 Minutes) Date: June 13, 2024 Department: Community Development Attachments: Presentation Budget Impact: Current Budget: $0 Proposed Revision: $0 Revised Budget: $0 Administrativ e Recommendation: For discussion only. Background for Motion: Background Summary: Every five years, the City of Auburn is required to submit an updated Consolidated Plan to the Department of Housing and Urban Development (HUD) to guide the investment of Community Development Block Grant (CDBG) funds. Auburn’s current Consolidated Plan ends in 2024, with the next plan (2025-2029) due to HUD in November. This presentation is intended to provide an overview of the upcoming 2025-2029 CDBG planning process, with information for the Council on what to expect and how to provide input and feedback. This presentation will describe the major components of the Consolidated Plan, Auburn's role within the King County Consortium, and what will be coming in front of Council this year for review, input, and approval. We are at the beginning of the process and would like Council input at the commencement of this process. (we will ask each of you for individual feedback during this session) We want Council feedback at the beginning of the process to ensure the development of the plan addresses your concerns and unique challenges in Auburn. We will also be seeking input from the Human Services Committee, the general public, non-profit agencies, etc. We are asking Councilmembers to help formulate the goals for the next 5 years and priorities for how we spend CDBG funds. Later in the year we will come back with a draft of the 5 year plan that incorporates all of the feedback we have received. Rev iewed by Council Committees: Councilmember:Yolanda Trout-Manuel Staff:Jason Krum Page 73 of 88 Meeting Date:June 24, 2024 Item Number: Page 74 of 88 AUBURN VALUES S E R V I C E ENVIRONMENT E C O N O M Y C H A R A C T E R SUSTAINABILITY W E L L N E S S C E L E B R AT I O NCOMMUNITY SERVICESCDBG CONSOLIDATED PLAN 2025-2029JEFF TATE & JODY DAVISONCITY COUNCIL STUDY SESSIONJUNE 24TH, 2024Department of Community DevelopmentPlanning Building Development Engineering Permit CenterSustainabilityCommunity Services ● Code EnforcementPage 75 of 88 The CDBG Entitlement Program provides annual grants on a formula basis to entitled cities to develop viable urban communities.Projects must:•Align with HUD’s National Objectives•Be eligible under HUD’s guidelines•Benefit low and moderate income personsCOMMUNITY DEVELOPMENT BLOCK GRANTSERVICE ENVIRONMENT ECONOMY CHARACTER SUSTAINABILITY WELLNESS CELEBRATIONPage 77 of 88 CDBG CONSOLIDATED PLANNING PROCESSApril - August September - NovemberPage 78 of 88 •Five Year Consolidated Plan•Eligibility Reviews•Annual Action Plans •Consolidated Annual Performance Evaluation Report (CAPER)•Annual Sub-recipient Monitoring•Financial Management•Project Management•Environmental Reviews•Procurement Procedure•Lead MitigationCDBG ADMINISTRATIVE REQUIREMENTSPage 80 of 88 WHAT WILL SHAPE OUR 2025 – 2029 CDBG CONSOLIDATED PLAN?CDBG CONSOLIDATED PLANPage 82 of 88 Existing 2020-2024 Goals 2025-2029 CONSOLIDATED PLANNING TIMELINE AND NEXT STEPSApril - August September - NovemberWe are here Page 86 of 88 The Consolidated Plan guides the investment of federal housing and community development funds. The Plan is a requirement of the U.S. Department of Housing and Urban Development (HUD), through which Auburn receives an annual entitlement, or formula grant, from the Community Development Block Grant (CDBG) program. WHAT IS THE CONSOLIDATED PLAN?2025 – 2029 Consolidated Plan2025 CAPER2026 CAPER2025 Action Plan2027 CAPER2028 CAPER2026 Action Plan2024 CAPER2027 Action Plan2028 Action Plan Page 87 of 88 QUESTIONS?CDBG CONSOLIDATED PLANPage 88 of 88